Shenzhen China Bicycle Company (Holdings) Limited ANNUAL REPORT 2014
April 2015
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.
Except the following director, other directors are attended the Board Meeting for Quarterly Report deliberation in person.
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|-|-|-|-|
|Nameofdirector notattended in person|Titleofdirector notattended in person|Reasons for absent|Trustee|
|YangFenbo|Director|Due to work|Li Hai|
|Kong Na|Director|Due to work|Cao Fang|

The Company has no plan of cash bonus, dividends and capitalizing of reserves either.
Luo Guiyou, Principal of the Company, Li Hai, person in charge of accounting works and Sun Longlong, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2014 Annual Report is authentic, accurate and complete.
Concerning the unqualifiedauditor’s report with explanatory paragraph issued by Ruihua Certified Public Accountant (LLP) for the financial report 2014 of the Company, board of the directors and supervisory committee are well-explained for relevant events, investors are advice to pay attention on reading.
Contents
AnnualReport 2014...........................................................................................................................1 Section I Important Notice, Contents andParaphrase .................................................................2 Section II Company Profile...............................................................................................................6 Section IIIAccountingdata and summary offinnaical indexes ..................................................9 Section IVReport of theBoard ofDirectors ................................................................................11 SectionVImportantEvents ..........................................................................................................27 SectionVIChanges insharesand particularaboutshareholders................................................... SectionVIIPreferredStock……………………………………………………………………….. SectionVIIIParticulars aboutDirectors, Supervisors,SeniorExecutives andEmployees.......35 Section IX Corporate Governance...................................................................................................... ................................................................................................................................................................ Section XInternal Control..............................................................................................................49 Section XI Financial Report............................................................................................................51 Section XII Documents available forreference.............................................................................51
Paraphrase
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|-|-|-|
|Items|Refersto|Contents|
|Company,TheCompany,theGroup|Refersto|SHENZHEN CHINA BICYCLE COMPANY(HOLDINGS)LIMITED|

Section II Company profile
I.Company information
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|-|-|-|-|
|Shortformofthestock|Zhonghua–A,Zhonghua-B|Stockcode|000017, 200017|
|Stockexchangeforlisting|ShenzhenStockExchange|||
|NameoftheCompany(inChinese)|深圳中华自行车(集团)股份有限公司|||
|ShortformoftheCompany(inChinese)|深中华|||
|ForeignnameoftheCompany(ifapplicable)|ChinaBicycleCompany(Holdings)Limited|||
|ShortformofforeignnameoftheCompany(ifapplicable)|CBC|||
|Legalrepresentative|LuoGuiyou|||
|Registrationsadd.|No.3008,BuxinRd.,Shenzhen,GuangdongProvince|||
|Codeforregistrationsadd|518020|||
|Officesadd.|Room1201,WantongBuilding,No.3002,SungangEastRoad,Shenzhen|||
|Codesforofficeadd.|518030|||
|Company’sInternetWebSite|www.cbc.com.cn|||
|E-mail|dmc@szcbc.com|||

II. Person/Way to contact
||||
|-|-|-|
||SecretaryoftheBoard|Rep.ofsecurityaffairs|
|Name|SunLonglong|CuiHongxia|
|Contactadd.|Room1201,WantongBuilding,No.3002,SungangEastRoad,Shenzhen|Room1201,WantongBuilding,No.3002,SungangEastRoad,Shenzhen|
|Tel.|0755-25516998,28181666|0755-25516998,28181666|
|Fax.|0755-28181009|0755-28181009|
|E-mail|dmc@szcbc.com|dmc@szcbc.com|

III. Information disclosureandpreparation place
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|-|-|
|Newspaperappointedforinformationdisclosure|SecuritiesTimes;HongKongCommercialDaily|
|WebsiteforannualreportpublishappointedbyCSRC|JuchaoWebsite(www.cninfo.com.cn)|

|||
|-|-|
|Preparationplaceforannualreport|Room1201,WantongBuilding,No.3002,SungangEastRoad,Shenzhen|

 IV.Registration changes ofthe Company
|||||||
|-|-|-|-|-|-|
||Dateforregistration|Placeforregistration|RegistrationNO.forenterpriselegallicense|No.oftaxationregistration|Organizationcode|
|Initialregistration|1984-08-24|Shenzhen,GuangdongProvince|QGYSZFZiNo.101165|StateRevenueShenZiNo.:440301618830452;ShenLocalTaxDengZiNo.:440303618830452|61883045-2|
|Registrationatendofreportperiod|2014-12-31|Shenzhen,GuangdongProvince|440301501122085|StateRevenueShenZiNo.:440301618830452;ShenLocalTaxDengZiNo.:440303618830452|61883045-2|
|Changesofmainbusinesssincelisting(ifapplicable)||Nochanges||||
|Previouschangesforcontrollingshareholders(ifapplicable)||1.InMarch1992,theStockoftheCompanywaslistedinShenzhenStockExchange,and23.28%equityoftheCompanywasheldbyShenzhenLiondaHoldingCo.,Ltd.andHongKongDahuanBicycleCo.,Ltdrespectively. 2.InMarch2002,legalshares13.58%A-stockoftheCompanywasobtainedbyChinaHuarongAssetManagementCo.,Ltd.throughcourtauction,andbecamethefirstmajorityshareholderoftheCompany.3.On13November2006,the65,098,412legalshearsofCBCheldbyHuarongCompanywasacquiredbyShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.viathe“EquityTransferAgreement”signed,andfirstmajorityoftheCompanycomestoGuoshengEnergy.GuoshengEnergyisthewholly-ownedsubsidiaryofNationalInvestment,actualcontrollerwasZhangYanfeng.4.InJanuary2011,controllingshareholderofShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.—ShenzhenNationalInvestmentDevelopmentCo.,Ltd.enteredintoequitytransferagreementwithMr.JiHanfei,100%equityofGuoshengEnergywastransfertoMr.JiHanfeiwithpriceof70million.ShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.ShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.holds63,508,747A-stockoftheCompanywith11.52%intotalsharecapitaloftheCompany.||||

V. Otherrelevant information
CPAengagedbytheCompany
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|NameofCPA|RuihuaCertifiedPublicAccountant(LLP)|
|Officesadd.forCPA|4/F,Tower2,No.16XiSihuanZhongLu,HaidianDistrict,Beijing,P.R.C|
|SigningAccountants|ChenSongbo,RenWeixing|

SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
FinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
Section III. Accounting data and summary of financial indexes I.Main accounting data andfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdataforaccountingpolicychangedandaccounting errorcorrectionornot
□Yes√□No
||||||
|-|-|-|-|-|
||2014|2013|Changesoverlastyear|2012|
|Operatingincome(RMB)|212,070,585.77|271,111,736.07|-21.78%|292,827,026.55|
|Netprofitattributabletoshareholdersofthelistedcompany(RMB)|4,885,678.56|1,575,223,894.89|-99.69%|-52,443,234.29|
|Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB)|-6,073,439.70|4,360,002.01|-239.30%|-55,517,844.94|
|Netcashflowarisingfromoperatingactivities(RMB)|3,921,048.18|-28,210,167.86|-113.90%|-7,026,573.55|
|Basicearningspershare(RMB/Share)|0.0089|2.8570|-99.69%|-0.0951|
|Dilutedearningspershare(RMB/Share)|0.0089|2.8570|-99.69%|-0.0951|
|WeightedaverageROE|51.72%|0.00%|51.72%|0.00%|
||Endof2014|Endof2013|Changesoverendoflastyear|Endof2012|
|Totalassets(RMB)|51,489,647.55|151,511,429.85|-66.02%|162,649,076.30|
|Netassetsattributabletoshareholderoflistedcompany(RMB)|11,903,347.67|7,003,335.40|69.97%|-1,709,451,256.41|

II. Difference ofthe accountingdata underaccounting rules inand outof China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International AccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
AccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofit ornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesor ChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
III. Items andamounts ofextraordinary profit(gains)/loss
√Applicable □Notapplicable
InRMB
||||||
|-|-|-|-|-|
|Item|Amountin2014|Amountin2013|Amountin2012|Note|
|Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)|33,851.46|1,611,690,513.84|||
|Gains/lossesfromdebtreorganization||49,342,739.18|||
|Reorganizationexpenses,suchasexpenditureforallocationofemployeesandintegrationfee||-70,732,704.23|||
|Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems|14,622,462.77|27,177.40|3,074,610.65||
|Otherloss/profitqualifieddefinitionofextraordinaryprofitandloss||72,934,048.27|||
|Less:Impactonincometax|3,664,078.56|92,393,298.62|||
|Impactonminorityshareholders’equity(post-tax)|33,117.41|4,582.96|||
|Total|10,959,118.26|1,570,863,892.88|3,074,610.65|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingto the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their SecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
Inreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiesto thePublic---ExtraordinaryProfit/loss
Section IV. Report of the Board of Directors
I.Introduction
Shenzhen IntermediatePeople’s Court rendered a ruling of the completion of the implementation of the restructuring plan of Shenzhen China Bicycle Company and the conclusion of its bankruptcy procedure on 27 December 2013, followed by the resumption of trading of its A share and B share on 31 December of the same year. Being approved by Shenzhen Stock Exchange, trading stock of the Company cancel the delisting risk warningsince14May2014
In 2014, domestic macro-economic situation remains severe, as in the field of traditional manufacturing, the bicycle industry continues to face the difficulties in soaring material costs, manufacture costs and capital costs, totalavailablemarketcontinuetofall.Inconferenceofthelowmarketentrybarriersandmultiplevendors,market isextremelycompetitive.However, withthedevelopmentofsocialeconomicinChinaandchangesoftheconcept of life, the consciousnessof green travel and practice relaxation continues beenaround, bicycle industry stands in the opportunity of structural development. In 2014, on basis of maintain key market areas of northern and eastern China, the Company emphasize market development in the South and northwest through gridding method in aspect of business development; while in aspect of operation method, gradually establish the mode of supermarket-operationandE-commerce;inaspectofproductresearch,continuestostrengthenthedevelopmentof mid-to high-end bicycles, E-bike and auxiliaries; meanwhile, improve supporting and cooperation standards towards front office for the back office via reinforcing back office management and office automation. Through carryingoutvariousoperations,underthecircumstancesofslightlydowninbicyclebusinessoverthatoflastyear, in 2014, the gross profit from bicycle operation stands the same as lastyear’s, business operation of the bicycle maintainsasmoothandhealthyrunning.
In2014,theCompanyachievedoperatingincomeofRMB212,070,600,totalprofitofRMB7,928,900,andnetprofitattributableto shareholdersofthelistedcorporationofRMB4,885,600.
II. Main business analysis
1.Introduction
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|-|-|-|-|-|
|Item|2014(intenthousandYuan)|2013(intenthousandYuan)|Y-o-ychanges|Reasonsforchanegs|
|Operationincome|21207.06|27111.17|-21.78%|Salesdeclined|
|Operationcost|19896.47|24322.56|-18.20%|Salesdeclined|
|Businesstaxandsurcharges|50.89|174.59|-70.85%|Salesdeclined|
|Salesexpenses|534.05|672.34|-20.57%|Salesdeclined|
|Administrationexpenses|1410.89|8581.51|-83.56%|Largeexpensesfromreorganizationlastyear|
|Investmentgains|0|7293.40|-100.00%|Disposalofsubsidiaryfromreorganizationlastyear|

||||||
|-|-|-|-|-|
|Non-operationincome|1468.54|194555.55|-99.25%|Incomefromreorganizationlastyear|
|Non-operationexpenditure|2.90|28449.51|-99.99%|Accrualliabilitywithdrawallastyear|
|Incometaxexpense|214.59|9300.01|-97.69%|Income from reorganization assetsdisposallastyear|
|Netprofit|578.30|157585.88|-99.63%|Incomefromreorganizationlastyear|
|Net profit attributable to parentcompany|488.57|157522.39|-99.69%|Incomefromreorganizationlastyear|
|Net cash flow from operationactivities|392.10|-2821.01|-113.90%|Reorganizationfeepaidlastyear|
|Net cash flow from investmentactivities|-59.14|165371.92|-100.04%|Cashin-flowfromreorganizationofassetsdisposallastyear|
|Net cash flow from financingactivities|0|-165107.02|-100.00%|Cashout-flowfromsettlementofreorganizationdebtslastyear|

 Majorchangesonprofitcompositionorprofitresourcesinreportingperiod
The net profit attributable to shareholders of listed company was RMB 4,885,600 in 2014, and the net profit attributable toshareholdersoflistedcompanywasRMB1,575,223,800in2013atadecreaseof99/69%y-o-y.Themainreasonofgreatdecreaseis that:theCompanyformedlargenon-operatingincomebyreorganizationandassetdisposalin2013.
Reasonsfordifferenceofactualoperationperformancehas20%lowerorhigherthanprofitforecastoftheYeardisclosed
□Applicable√Notapplicable
Changesofmainoperationmode
□Applicable√Notapplicable
2.Revenue
Explanation
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|-|-|-|-|-|
|Industries|Item|2014|2013|Increase/decreasey-o-y(%)|
|Manufacturingindustry|Salesvolume|276,900 cars|339,600 cars|-18.46|
||Productionvolume|278,900cars|334,600 cars|-16.65|
||Stockvolume|8,000 cars|6,000cars|33.33|

 Whetherincomefromphysicalsaleslargerthanincomefromlaborsornot
□Yes√□No
Materialordersinhands
□Applicable√Notapplicable
MaterialchangesoradjustmentforproductsorservicesoftheCompanyinreportingperiod
□Applicable√Notapplicable
MajorsalesoftheCompany
|||
|-|-|
|Totaltopfiveclientsinsales(RMB)|154,053,387.37|
|Proportionintotalannualsalesvolumefortopfiveclients|72.64%|

InformationoftopfiveclientsoftheCompany
√Applicable □Notapplicable
|||||
|-|-|-|-|
|Serial|Name|Sales(RMB)|Proportionintotalannualsales|
|1|Client1|71,677,856.36|33.80%|
|2|Client2|23,294,979.32|10.98%|
|3|Client3|23,152,376.34|10.92%|
|4|Client4|21,411,314.75|10.10%|
|5|Client5|14,516,860.60|6.84%|
|Total|--|154,053,387.37|72.64%|

 Othersituationofmainclients
□Applicable√Notapplicable
3.Cost
Industryclassification
InRMB
||||||||
|-|-|-|-|-|-|-|
|Industryclassification|Item|2014||2013||Y-o-ychanges|
|||Amount|Ratioinoperationcost|Amount|Ratioinoperationcost||
|Salesofbicyclesandaccessoriesandfittings||198,964,665.65|100.00%|231,878,075.06|98.84%|-14.19%|
|LeaseManagement||||2,712,219.43|1.16%|-100.00%|

Productclassification
InRMB
||||||||
|-|-|-|-|-|-|-|
|Productclassification|Item|2014||2013||Y-o-ychanges|
|||Amount|Ratioinoperationcost|Amount|Ratioinoperationcost||
|Salesofbicyclesandaccessoriesandfittings||198,964,665.65|100.00%|231,878,075.06|98.84%|-14.19%|
|LeaseManagement||||2,712,219.43|1.16%|-100.00%|

Notes
Nil
MainsuppliersoftheCompany
|||
|-|-|
|Totalpurchaseamountfromtopfivesuppliers(RMB)|175,407,156.49|
|Proportionintotalannualpurchaseamountfortopfivesuppliers|88.16%|

InformationoftopfivesuppliersoftheCompany
√Applicable □Notapplicable
|||||
|-|-|-|-|
|Serial|Name|Sumofpurchase(RMB)|Proportionintotalannualsumofpurchase|
|1|Supplier1|70,238,101.49|35.30%|
|2|Supplier2|64,961,248.03|32.65%|
|3|Supplier3|24,137,788.03|12.13%|
|4|Supplier4|8,332,323.21|4.19%|
|5|Supplier5|7,737,695.73|3.89%|
|Total|--|175,407,156.49|88.16%|

 OthernotesofmainsuppliersoftheCompany
□Applicable√Notapplicable
4.Expenses
In the Period, administration expenses decreased83.56% than the same period of last year, mainly because of bankruptcyreorganizationexpensesinthesameperiodoflastyear,
In the Period, financial expenses decreased86.65% than the same period of last year, mainly because of bankruptcyreorganizationexpensesinthesameperiodoflastyear,
In the Period, income tax decreased97.69% than the same period of last year, mainly because income from disposalofassetscausedthelargeincometax.
5.R&Dexpenses
Nil
6.Cashflow
InRMB
|||||
|-|-|-|-|
|Item|2014|2013|Y-o-ychanges|
|Subtotalofcashin-flowfromoperationactivity|223,967,528.32|184,060,170.56|21.68%|
|Subtotalofcashout-flowfromoperationactivity|220,046,480.14|212,270,338.42|3.66%|
|Netcashflowfromoperationactivity|3,921,048.18|-28,210,167.86|-113.90%|
|Subtotalofcashin-flowfrominvestmentactivity|100,500.00|1,660,347,221.12|-99.99%|
|Subtotalofcashout-flowfrominvestmentactivity|691,852.99|6,628,008.22|-89.56%|
|Netcashflowfrominvestmentactivity|-591,352.99|1,653,719,212.90|-100.04%|

|||||
|-|-|-|-|
|Subtotalofcashin-flowfromfinancingactivity||5,390,399.73|-100.00%|
|Subtotalofcashout-flowfromfinancingactivity||1,656,460,634.04|-100.00%|
|Netcashflowfromfinancingactivity||-1,651,070,234.31|-100.00%|
|Netincreasedamountofcashandcashequivalent|3,329,695.19|-25,561,189.27|-113.03%|

Reasonsfory-o-yrelevantdatawithover30%changes
√Applicable □Notapplicable
Netcashflowfromoperationactivitydeclined113.90%y-o-ymainlybecauseeconomiccompensationarepaidatsameperiodoflast yera;
Cashin-flowfrominvestmentactivitydeclined99.99%y-o-ymainlybecauseatsameperiodoflastyera,obtainedmajorcashflow forcoreassetsdisposeduetobankruptcyreorganization;
Cashout-flowfrominvestmentactivitydeclined89.56%y-o-ymainlybecauseatsameperiodoflastyear,replaceintangibelassets brandwithcash;
Netcashflowfrominvestmentactivitydeclined100.04%y-o-ymainlybecauseatsameperiodoflastyera,obtainedmajorcashflow forcoreassetsdisposeduetobankruptcyreorganization;
Cash in-flow from financing activity has no amount occurred, at same period of last yera, obtained donation from majority shareholdersforreplaceintangibelassetsbrand;
Cash out-flow from financingactivity has no amount occurred,at same period of last yera, the satisfaction money paid to creditor duetobankruptcyreorganization;
Netcashflowfromfinancingactivityhasnoamountoccurred,atsameperiodoflastyera,thesatisfactionmoneypaidtocreditordue tobankruptcyreorganization;
Netincreaseofcashandcashequivalentdeclined113.03%y-o-ymainlyduetothebankruptcyreorganizationatsameperiodoflast year
ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
□Applicable√Notapplicable
III. Composition ofmain business
InRMB
||||||||
|-|-|-|-|-|-|-|
||Operatingrevenue|Operatingcost|Grossprofitratio|Increase/decreaseofoperatingrevenuey-o-y|Increase/decreaseofoperatingcosty-o-y|Increase/decreaseofgrossprofitratioy-o-y|
|Accordingtoindustries|||||||
|Bicyclesindustry|206,787,455.39|194,455,356.12|5.96%|-16.37%|-17.11%|0.84%|
|Accordingtoproducts|||||||
|Bicycles|206,787,455.39|194,455,356.12|5.96%|-16.37%|-17.11%|0.84%|
|Accordingtoregion|||||||

||||||||
|-|-|-|-|-|-|-|
|Domestic|206,787,455.39|194,455,356.12|5.96%|-16.37%|-17.11%|0.84%|

 Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
IV.Assets andliability analysis
1.Majorchangesofassets
InRMB
||||||||
|-|-|-|-|-|-|-|
||Endof2014||Endof2013||Ratiochanges|Notesofmajorchanges|
||Amount|Ratiointotalassets|Amount|Ratiointotalassets|||
|Monetaryfund|30,163,866.78|58.58%|26,834,171.59|17.71%|40.87%|Mainlybecausereorganizationreducedthetotalassetsgreatly|
|Accountreceivable|6,790,982.50|13.19%|7,060,251.28|4.66%|8.53%||
|Inventory|6,171,307.53|11.99%|4,545,116.43|3.00%|8.99%||
|Fixassets|773,961.84|1.50%|227,824.37|0.15%|1.35%||
|Otherreceivables|511,254.81|0.99%|107,395,429.69|70.88%|-69.89%|Mainlybecausereorganizationdisposedotherreceivables|

2.Majorchangesofliability
InRMB
||||||||
|-|-|-|-|-|-|-|
||Endof2014||Endof2013||Ratiochanges|Notesofmajorchanges|
||Amount|Ratiointotalassets|Amount|Ratiointotalassets|||
|Taxpayable|2,232,187.80|4.34%|93,778,253.57|61.90%|-57.56%|Themajorincometaxarisingfromreorganizationincomepaidlastyear|

 3.Assetsandliabilitiesmeasuredbyfairvalue
□Applicable√Notapplicable
4.Mainoverseasassets
□Applicable√Notapplicable
V. Analysis ofcore competence
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 developmentandqualitymanagementsoastomaintainandimprovetheCompany’sability tocontinueasagoing 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 continuousprofitabilitythroughtherestructuringofassets.
VI.Investment analysis
1.Equityinvestmentoutside
(1)Investmentoutside
□Applicable√Notapplicable
Thecompanyhadnoinvestmentoutsideinthereportingperiod.
(2)Holdingtheequityoffinancialenterprise
□Applicable√Notapplicable
Thecompanyhadnotheldtheequityoffinancialenterpriseinthereportingperiod.
(3)Securitiesinvestment
□Applicable√Notapplicable
Thecompanyhadnosecuritiesinvestmentinthereportingperiod.
(4)Explanationonequityofotherlistedcompanyheld
□Applicable√Notapplicable
TheCompanyhadnoequityofotherlistedcompanyheldinPeriod.
2.Trustfinancing,derivativeinvestmentandentrustedloans
(1)Trustfinancing
□Applicable√Notapplicable
Thecompanyhadnotrustfinancinginthereportingperiod.
(2)Derivativeinvestment
□Applicable√Notapplicable
Thecompanyhadnoderivativeinvestmentinthereportingperiod.
(3)Entrustedloans
□Applicable√Notapplicable
Thecompanyhadnoentrustedloansinthereportingperiod.
3.Applicationofraisedproceeds
□Applicable√Notapplicable
Thecompanyhadnoapplicationofraisedproceedsinthereportingperiod.
4.Mainsubsidiariesandstock-jointlycompanies
√Applicable □Notapplicable
Particularaboutmainsubsidiariesandstock-jointlycompanies
InRMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Companyname|Type|Industries|Mainproductsorservice|Registercapital|Totalassets|NetAssets|Operatingrevenue|Operatingprofit|Netprofit|
|ShenzhenEmmelleIndustryCo.,Ltd.|Subsidiary|Wholesaleandretail|Salesofbicyclesandaccessories|2000000|44,648,769.94|5,309,194.67|208,519,758.34|3,869,670.15|2,991,068.74|

Notesofmainsubsidiariesandstock-jointlycompanies
TheCompanyholds70percentequityoftheShenzhenEmmelleIndustryCo.,Ltd.,thebalanceofminorityequityatyear-end amountingto1,592,758.40Yuan
Particularaboutsubsidiariesobtainedordisposedinreportperiod
□Applicable√Notapplicable
5.Majorprojectsinvestedbynon-raisedfund
□Applicable√Notapplicable
Thecompanyhadnomajorprojectsinvestedbynon-raisedfundinthereportingperiod.
VII. Prediction ofbusiness performancefrom January–March 2015
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 explanationonreason
□Applicable√Notapplicable
VIII. Special purposevehicle controlledbytheCompany
□Applicable√Notapplicable
IX.Prospects on futuredevelopment
1.DevelopmenttrendoftheindustrytheCompanyoperatesinandmarketcompetitionpatternitdealswith:
The Company has been engaging in the electric bicycle business since 2002. After going through the rapid
development in the pastfew years, the electric bicycle industry has witnessed obvious stagnation since 2007. The
shortsupplyofbatteriesasthemaincomponentofelectricalmachinecausedbytheenhancedmanagementofrare
earth industry and battery industry in 2011 has constrained, to some extent, the manufacturing of electric bicycle industry. The new standard of electric bicycle industry and the uncertainty of its launch time have also caused a negative impact on the selling of electric bicycles. Meanwhile, the electric bicycle industry as a conventional manufacturing field is expected to remain in a hard situation with rising material cost, manufacturing cost and financing cost. Due to the low entry threshold and numerous manufacturers, the market competition is extremely fierce. However, with the development ofChina’s social economy and the change ofpeople’s living concept, the increased awareness of green commuting, leisure and exercises creates structural development opportunity for bicycleindustry.
2.FuturedevelopmentopportunityandnewyearlybusinessplanoftheCompany:
Thefierce marketcompetition createsstructuraldevelopmentopportunity fortheindustry. Attheendof2013,the Companycompleted theimplementation ofits restructuring planandconcluded its bankruptcyprocedure,thereby improvingthelegalenvironmentitsbusinessfaceswith.ThebusinessplanoftheCompanyfor2015is:
(1)TocontinuouslypromoterestructuringwhileinactivecooperationwithshareholdersandtheBoard.
(2) To further promote the construction of internal control system and improve the operating efficiency and results.
(3) To reform and perfect the internal operating mechanism; distributed the annual targets to every marketing companies and every regional manager, evaluation based on manager responsibility system, following up month bymonthandrollingevaluation
(4)Tofollowcloselythetop-tierclientsandfocusontheexplorationofsecond-tierclientstoactivelypromotethe downwardstretchoftheconstructionofitsdistributionnetworkterminals.
(5)Tocontinuouslypromotetheregionalmarketoperationinassociatedmarket.
(6)Tofurtherexplorenewmarketandsupportnewclientbusiness.
(7) To adoptmulti-mode operation andexplore new operatingmodeas the strategy ofpromoting medium-to-high endbicycles.
(8)Toputmoreeffortsonthepublicityandpromotionofproducts,focusonbrandpublicizeandpromote; (9) To enhance the development of medium-to-high end bikes, folding bikes and lithium batteries electric bikes, andenhancethedevelopmentandpromotionofmedium-to-highendauxiliaryparts.
(10)TostrictlyimplementtheentryandexitmechanismofOEMfactoriesandsuppliersandperformstrictquality managementandcontrol,andcarryoutstaffsupplementandtrainingasplanned.
(11)Toenhanceteambuildingandintegratehumanresourcestomotivatethestaff.
3.RiskfactorsadversetotheCompany’sdevelopment:
The tough international economic situation has a deep impact on the domestic consumption market where significant amount of export-oriented manufacturing enterprises has shifted. The bicycle and electric bicycle marketisfacingacomplexenvironmentthatpricewarisamajorcompetitionmeans.Sincethedomesticeconomy is at the structural adjustment stage, coupled with a difficult situation of continuously rising material cost, manufacturing cost and financing cost, the bicycle industry as a conventional manufacturing field recorded a declineinthemarketturnover.Duetothelowentrythresholdandnumerousmanufacturers,thecompetitioninthe marketisextremelyfierce.
Tosolvetheaboveproblems,theCompanywillononehandstrivetoexpandthemainbusinesswhileensuringits sustainable and stable development, especially the manufacturing and selling of electric bicycles and medium-to-highendbicycles,andwillontheotherhandactivelypromotetherestructuring.
X.Explanationon“ModifiedAuditor’s Report”fromtheBoardandSupervisory Committee
√Applicable □Notapplicable
On 11th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reformingtheCompanyastheCompanycouldn’tpayoffthematureddebtsandwasseriouslyinsolvent.On12th,Oct.,2012, Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012 according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King& Wood (Shenzhen) Mallesons and ShenzhenZhengYuanLiquidationAffairsCo.,Ltd.asthecustodiansoftheCompany.Atthesame time,Shenzhen MunicipalIntermediatePeople'sCourtmade(2012)ShenzhenIntermediateCourtPoZiNo.30-1writtendecision, 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 ZhongFa Po Zi No. 30-10 ruled thatthereorganizationplanofCBCwascompletedandbankruptcyproceduresofCBCcloseddown.
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 netassets shouldbe no less than 2 billionYuan, the netassets 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 relatedworksactivelyandpromotethereorganizationworkwithallefforts.
XI. Explanation on changes in aspect of accounting policy, accounting estimation and calculation method, comparewithlastyear’s financial report
√Applicable □Notapplicable
2 At the beginning of 2014, Ministry of Finance issued the followed rules Cai Kuai[2014] No. 6; No.8; No.10; No.11; No.14 and No.16, that is "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurements ", "AccountingStandards forBusiness Enterprises No.30-Presentationof FinancialStatements "(2014 Revised), "Accounting Standards for Business Enterprises No. 9 - Employee Remuneration(2014 Revised)", " Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements "(2014 Revised), "Accounting Standards for Business Enterprises No. 40 - Joint Venture Arrangement", "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments(2014 Revised)" and "Accounting Standards for Business Enterprises No. 41 - Disclosure of Interests in Other Entities", and requires all the enterprises implementing the accounting standards to execute since July 1, 2014. Meanwhile, the Ministry of Finance issued the CaiKuai[2014] No.23 "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments(2014 Revised)"(“Presentation of Financial Instruments” for short), which requires the enterprises implementing the accounting standards to present the financial instruments in the financial reports of
2014andthesubsequentperiodsinaccordancewiththerequirementsoftheaccountingstandards.
本 The Company executed the above mentioned 7 new or revised accounting standards except the Presentation of Financial Instruments since 1 July 2014, and started executing the Presentation of Financial Instruments in preparing the annual financial repot of 2014. The accounting policy changed shows no impart on items and amountofcurrentandpreviousfinancialstatements.
XII. Explanation on major accounting error correction that needs retroactive re-statement in reporting period
□Applicable√Notapplicable
Noparticularaboutmajoraccountingerrorscorrectionthatneedsretroactivere-statementfortheCompanyinthereporting. XIII. Explanation onchanges of consolidationrange, compare withlastyear’s financialreport□Applicable√Notapplicable
Nochangesinconsolidationstatement’sscopefortheCompanyinthereporting.
XIV.Profitand dividenddistribution
Establishment,implementationoradjustmentofprofitdistributionpolicyduringthereportingperiod
□Applicable√Notapplicable
The profit distribution plan and capitalization of capital reserve plan of the Company for the last three years (reporting period included)
Nil
Cashdividendinlatestthreeyears
InRMB
|||||||
|-|-|-|-|-|-|
|Yearforbonusshares|Amountforcashbonus(taxincluded)|Netprofitattributabletoshareholdersoflistedcompanyinconsolidationstatementforbonusyear|Ratioinnetprofitattributabletoshareholdersoflistedcompanycontainedinconsolidationstatement|Amountreckonedintocashbonusfromcashrepurchase|Proportionoftheamountreckonedintocashbonusfromcashrepurchase|
|2014||4,885,678.56||||
|2013||1,575,223,894.89||||
|2012||-52,443,234.29||||

TheCompanygainsprofitsinreportingperiodandtheretainedprofitofparentcompanyispositivebutnoplanofcashdividend proposed
□Applicable√Notapplicable
XV.Plan of profitdistributionandcapital reserve capitalizingin thereporting
□Applicable√Notapplicable
TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherfor theyear
XVI. Socialresponsibility
□Applicable√Notapplicable
XVII. Inthereportperiod, reception of research, communication andinterview
√Applicable □Notapplicable
|||||||
|-|-|-|-|-|-|
|Time|Place|Way|Type|Reception|Contentsdiscussedandmaterialprovided|
|2014|OfficeoftheCompany|Telephonecommunication|Individual|Circulationshareholder|ProgressofreorganizationfortheCompany|

Section V. Important Events
I.Significantlawsuits andarbitrations ofthe Company
□Applicable√Notapplicable
Nosignificantlawsuitsandarbitrationsoccurredinthereportingperiod
II. Questionfrom media
□Applicable√Notapplicable
Nouniversalquestionedbymediainreportingperiod
III. Non-operational fundoccupation fromcontrolling shareholders andits related party□Applicable√Notapplicable
Nonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.
IV.Bankruptcy reorganization
□Applicable√Notapplicable
NobankruptcyreorganizationfortheCompanyinreportingperiod
V. Assets transaction
1.Purchaseofassets
□Applicable√Notapplicable
NopurchaseofassetsfortheCompanyinreportingperiod
2.Assetssold
□Applicable√Notapplicable
NoassetssoldfortheCompanyinreportingperiod
3.Enterprisemerger
□Applicable√Notapplicable
NoenterprisemergerfortheCompanyinreportingperiod
VI.Implementation andits influenceofequity incentiveplan
□Applicable√Notapplicable
NoimplementationofequityincentiveplanfortheCompanyinreportingperiod
VII. Material related transactions
1.Relatedtransactionwithdailyoperationconcerned
□Applicable√Notapplicable
NorelatedtransactionwithdailyoperationconcernedfortheCompanyinreportingperiod
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√Notapplicable
NorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod
3.Mainrelatedtransactionsofmutualinvestmentoutside
□Applicable√Notapplicable
NomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod
4.Contactofrelatedcreditanddebt
√Applicable □Notapplicable
Whetherexistnon-operatingcontactofrelatedcreditanddebtornot
√Yes□No
|||||||||
|-|-|-|-|-|-|-|-|
|Relatedparty|Relatedrelationship|Typeofcreditanddebt|Resultedreason|Whetherexistnon-operationalcapitaloccupying|Balanceofperiod-begin(in10thousandYuan)|Amountoftheperiodoccurrence(in10thousandYuan)|Balanceatperiod-end(in10thousandYuan)|
|Shenzhen GuoshengEnergy InvestmentDevelopmentCo.,Ltd.|Controllingshareholder|Debtpayabletorelatedparty|Loan|No|650|0|650|
|InfluenceonoperationresultandfinancialstatueoftheCompanyfromrelatedcreditanddebts||Noinfluence||||||

5.Other relatedtransactions
□Applicable√Notapplicable
NootherrelatedtransactionsfortheCompanyinreportingperiod
VIII.Major contract andimplantation
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√Notapplicable
NotrusteeshipfortheCompanyinreportingperiod
(2)Contract
□Applicable√Notapplicable
NocontractfortheCompanyinreportingperiod
(3)Leasing
□Applicable√Notapplicable
NoleasingfortheCompanyinreportingperiod
2.Guarantee
□Applicable√Notapplicable
NoguaranteefortheCompanyinreportingperiod
3.Othermaterialcontracts
□Applicable√Notapplicable
NoothermaterialcontractsfortheCompanyinreportingperiod
4.Othermaterialtransaction
□Applicable√Notapplicable
NoothermaterialtransactionsfortheCompanyinreportingperiod
IX.Implementation ofcommitment
1.CommitmentsfromtheCompanyorshareholderwithover5%shareheldinreportingperiodorcontinuestoreporting period
□Applicable√Notapplicable
NocommitmentfromtheCompanyorshareholderwithover5%shareheldinreportingperiodorcontinuestoreportingperiodfor theCompanyintheperiod.
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in forecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
X. Appointmentandnon-reappointment (dismissal) ofCPA
Accountingfirmappointed
|||
|-|-|
|Nameofdomesticaccountingfirm|RuihuaCertifiedPublicAccountant(LLP)|
|Remunerationfordomesticaccountingfirm(in10thousandYuan)|45|
|Continuouslifeofauditingserviceforforeignaccountingfirm|10|
|NameofdomesticCPA|ChenSongbo,RenWeixing|

Whetherre-appointedaccountingfirmsinthisperiodornot
□Yes√□No
Appointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable □Notapplicable
In2014,theCompanyappointedRuihuaCertifiedPublicAccountant(LLP)astheauditingoftheinternalcontrol,and auditingfeeRMB150,000.
XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for “QualifiedOpinion”fromthe CPA
√Applicable □Notapplicable
Financial report 2014 of the Company was audited by Ruihua Certified PublicAccountant (LLP) with unqualifiedauditor’s report withexplanatoryparagraphissued.Inlinewithregulationof“RulesofShenzhenStockExchangefortheListingofStocks”,boardof directorsmakes specify explanationontheeventsinvolvedintheauditreport. Independentdirectorsagree thespecific explanation ontheeventsinvolvedintheauditreportfromtheBoard.
XII. Penalty andrectification
□Applicable√Notapplicable
NopenaltyandrectificationfortheCompanyinreportingperiod.
XIII. Particular aboutsuspendedanddelisting after annual report disclosed
□Applicable√Notapplicable
XIV. Explanationon othersignificantevents
□Applicable√Notapplicable
NoexplanationonothersignificanteventsfortheCompanyinreportingperiod.
XV. Significanteventof subsidiary of theCompany
□Applicable√Notapplicable
XVI. Issuanceof corporate bonds
□Applicable√Notapplicable
Section VI. Changes in Shares and Particulars about Shareholders
I.Changes inShares
1.ChangesinShares
Inshare
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||BeforetheChange||Increase/DecreaseintheChange(+,-)|||||AftertheChange||
||Amount|Proportion|Newsharesissued|Bonusshares|Capitalizationofpublicreserve|Others|Subtotal|Amount|Proportion|
|I.Restrictedshares|11,362|0.00%||||-3,130|-3,130|8,232|0.00%|
|1.State-ownedshares|0|0.00%||||||0|0.00%|
|2.State-ownedlegalperson’s shares|0|0.00%||||||0|0.00%|
|3.Otherdomesticshares|11,362|0.00%||||-3,130|-3,130|8,232|0.00%|
|Including:Domesticlegalperson’sshares|0|0.00%||||||0|0.00%|
|Domesticnaturalperson’sshares|11,362|0.00%||||-3,130|-3,130|8,232|0.00%|
|4.Foreignshares|0|0.00%||||||0|0.00%|
|Including:Foreignlegalperson’sshares|0|0.00%||||||0|0.00%|
|Foreignnaturalperson’sshares|0|0.00%||||||0|0.00%|
|II.Unrestrictedshares|551,336,585|100.00%||||3,130|3,130|551,339,715|100.00%|
|1.RMBOrdinaryshares|302,976,018|54.95%||||715|715|302,976,733|54.95%|
|2.Domesticallylistedforeignshares|248,360,567|45.05%||||2,415|2,415|248,362,982|45.05%|
|3.Overseaslistedforeignshares|0|0.00%||||||0|0.00%|
|4.Others|0|0.00%||||||0|0.00%|
|III.Totalshares|551,347,947|100.00%||||0|0|551,347,947|100.00%|

Reasonsforsharechanged
√Applicable □Notapplicable
Reasonsforchanges:sharesheldbyseniorexecutivesupervisorMr.ZhengZhonghuanhasreleasedandemployeesupervisorMr.
TaoHualiang’ssharesreleasedduetoretirement
Approvalofsharechanged
□Applicable√Notapplicable
Ownershiptransferofsharechanged
□Applicable√Notapplicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholdersofCompanyinlatestyearandperiod
□Applicable√Notapplicable
OtherinformationnecessarytodisclosefortheCompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changesofrestrictedshares
□Applicable√Notapplicable
II. Security offering andlisting
1.Previoussecurityofferinginlatestthreeyearsatperiod-end
□Applicable√Notapplicable
2.Explanationonchangesoftotalshares,shareholdersstructureandassets&liabilitystructures
□Applicable√Notapplicable
3.Currentsharesheldbyinternalstaffs
□Applicable√Notapplicable
III.Particulars aboutshareholderandactual controllerofthe Company
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
Inshare
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Totalcommonshareholdersinreportingperiod-end||35,266||Totalcommonshareholdersatendofthe5thtradingdaybeforeannualreportdisclosed|||||Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)(foundinnote8)||0||
|Sharesheldabove5%byshareholdersortoptenshareholders|||||||||||||
|FullnameofShareholders|Natureofshareholder||Proportionofsharesheld||Totalshareholdersattheendofreportperiod|Changesinreportperiod|Amountofrestrictsharesheld|Amountofun-restrictsharesheld||Numberofsharepledged/frozen|||
|||||||||||Stateofshare||Amount|
|ShenzhenGuochengEnergyInvestment|Domesticnon-State-ownedlegalperson||11.52%||63,508,747|0|0|63,508,747||||0|

|||||||||
|-|-|-|-|-|-|-|-|
|DevelopmentCo.,Ltd.||||||||
|ZhuorunTechnologyCo.,Ltd.|Foreignlegalperson|4.90%|27,000,000|-12693822|0|27,000,000|0|
|SpecificaccountofpropertydispositionforbankruptcyenterpriseofCBC|Domesticnon-State-ownedlegalperson|1.63%|9,001,018|0|0|9,001,018|0|
|ZengYing|Domesticnatureperson|1.15%|6,342,717|0|0|6,342,717|0|
|JingchaoInvestmentCo.,Ltd.|Foreignlegalperson|0.84%|4,601,789|0|0|4,601,789|0|
|COREPACIFIC-YAMAICHIINTERNATIONAL(H.K.)LIMITED|Foreignlegalperson|0.82%|4,518,319|3012616|0|4,518,319|0|
|LiDongxuan|Domesticnatureperson|0.71%|3,896,799|3,896,799|0|3,896,799|0|
|LiHuili|Domesticnatureperson|0.71%|3,891,124|0|0|3,891,124|0|
|XuHongbo|Domesticnatureperson|0.57%|3,137,419|685500|0|3,137,419|0|
|NingYimin|Domesticnatureperson|0.49%|2,695,021|0695021|0|2,695,021|0|
|Strategy investors or generalcorporate comes to top 10shareholders by rights issued (ifapplicable)(seenote3)||N/A||||||
|Explanation on associatedrelationship among the aforesaidshareholders||LiHuili,thespouseofactualcontrollerJiHanfei,holdingB-shareoftheCompanyonbehalfof Shenzhen Guocheng Energy Investment Development Co., Ltd., beyond that, theCompany has no idea of whether other circulated shareholders belong to concerted actionpersons ruled in the Administration Norms for Information Disclosure of Change onShareholdingofShareholdersofListedCompanies.||||||
|Particularabouttoptenshareholderswithun-restrictsharesheld||||||||

|||||
|-|-|-|-|
|Shareholders’name|Amountofun-restrictedsharesheldatperiod-end|Typeofshares||
|||Type|Amount|
|ShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.|63,508,747|RMBcommonshares|63,508,747|
|ZhuorunTechnologyCo.,Ltd.|27,000,000|RMBcommonshares|27,000,000|
|SpecificaccountofpropertydispositionforbankruptcyenterpriseofCBC|5,011,444|RMBcommonshares|5,011,444|
||3,989,574|Domesticallylistedforeignshares|3,989,574|
|ZengYing|6,342,717|RMBcommonshares|6,342,717|
|JingchaoInvestmentCo.,Ltd.|4,601,789|RMBcommonshares|4,601,789|
|COREPACIFIC-YAMAICHIINTERNATIONAL(H.K.)LIMITED|4,518,319|Other|4,518,319|
|LiDongxuan|3,896,799|RMBcommonshares|3,896,799|
|LiHuili|3,891,124|Domesticallylistedforeignshares|3,891,124|
|XuHongbo|3,137,419|Domesticallylistedforeignshares|3,137,419|
|NingYimin|2,695,021|RMBcommonshares|2,695,021|
|Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders|LiHuili,thespouseofactualcontrollerJiHanfei,holdingB-shareoftheCompanyonbehalfofShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.,beyondthat,theCompanyhasnoideaofwhetherothercirculatedshareholdersbelongtoconcertedactionpersonsruledintheAdministrationNormsforInformationDisclosureofChangeonShareholdingofShareholdersofListedCompanies.|||
|Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonshareholderswithun-restrictsharesheld(ifapplicable)(seenote4)|N/A|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealinginreportingperiod
□Yes√No
Thetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-back agreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Corporation
|||||||
|-|-|-|-|-|-|
|Controllingshareholder|Legalrep./personinchargeofunit|Dateestablished|Organizationcode|Registercapital|Mainbusiness|
|ShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.|JiHanfei|2005-04-26|440301105151303|RMB220,000,000|Industry development,domestic commerce,materials supply andsale (excluding speciallyrun, controlled and soldmerchandises)|
|Futuredevelopmentstrategy|N/A|||||
|Operationresult,financialstatus,andcashflowetc.|N/A|||||
|Equityofotherdomestic/foreignlistedcompanywithsharecontrollingandshareparticipationbycontrollingshareholderinreportingperiod|N/A|||||

Changesofcontrollingshareholderinreportingperiod
□Applicable√Notapplicable
NochangesofcontrollingshareholderfortheCompanyinreportingperiod
3.ActualcontrolleroftheCompany
Natureperson
||||
|-|-|-|
|Actualcontroller|Nationality|Whetherobtainedrightofresidenceofothercountriesorregionsornot|
|JiHanfei|P.R.C|No|
|Professionandtitleinlatestfiveyears|LegalpersonofShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.||
|ListedcompanyinandoutofChinacontrolledinpastdecades|N/A||

Changesofactualcontrollersreportingperiod
□Applicable√Notapplicable
NochangesofactualcontrollersfortheCompanyinreportingperiod
PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
Ji Hanfei
100%
Shenzhen Guocheng Energy Investment Development Co.,
Ltd.
11.52%
ShenzhenChinaBicycleCompany(Holding)Limited
ActualcontrollercontrollingtheCompanybymeansofentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
IV. Share holding increasing plan proposed or implemented in reporting period from shareholderoftheCompany andits concerted action person
□Applicable√Notapplicable
AsfarastheCompanyknown,therearenoshareholdersoftheCompanyandtheirconcertedactionpeopleproposeorimplement overweightinthePeriod
Section VII. Preferred Stock
□Applicable√Notapplicable
TheCompanyhadnopreferredstockinthereporting.
Section VIII. Particulars about Directors, Supervisors and Senior Executives and Employees
I.Changes ofshares held bydirectors, supervisors andseniorexecutives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Name|Title|Workingstatus|Sex|Age|Startdatedofofficeterm|Enddateofofficeterm|Sharesheldatperiod-begin(Share)|Increasingsharesheldinthisperiod(Share)|Decreasingsharesheldinthisperiod(Share)|Sharesheldatperiod-end(Share)|
|LuoGuiyou|Chairman|Currentlyinoffice|M|52|2013-09-26|2016-09-25|0|0|0|0|
|YangFenbo|Director|Currentlyinoffice|M|58|2013-09-26|2016-09-25|0|0|0|0|
|LiHai|Director,President|Currentlyinoffice|M|46|2013-09-26|2016-09-25|0|0|0|0|
|YaoZhengwang|Director|Currentlyinoffice|M|40|2013-09-26|2016-09-25|0|0|0|0|
|CaoFang|Director|Currentlyinoffice|M|41|2013-09-26|2016-09-25|0|0|0|0|
|KongNa|Director|Currentlyinoffice|F|38|2013-09-26|2016-09-25|0|0|0|0|
|CuiJun|Independentdirector|Currentlyinoffice|M|51|2013-09-26|2016-09-25|0|0|0|0|
|ChenShujun|Independentdirector|Currentlyinoffice|M|47|2013-09-26|2016-09-25|0|0|0|0|
|LiBing|Independentdirector|Currentlyinoffice|F|39|2013-09-26|2016-09-25|0|0|0|0|
|LiXiang|Convenerofsupervisors|Currentlyinoffice|M|41|2014-06-27|2017-06-26|0|0|0|0|
|ZhengZhonghuan|Supervisor|Currentlyinoffice|M|53|2014-06-27|2017-06-26|10,976|0|2,700|8,276|
|LiJialin|StaffSupervisor|Currentlyinoffice|M|54|2014-06-27|2017-06-26|0|0|0|0|
|SunLonglong|SecretaryofBoard|Currentlyinoffice|M|42|2013-09-26|2016-09-25|0|0|0|0|
|XiaoYan|Supervisor|Office|M|47|2011-06-2|2014-06-2|0|0|0|0|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||leaving|||8|7|||||
|TaoHualiang|StaffSupervisor|Officeleaving|M|61|2011-06-07|2014-06-27|3,220|0|3,220|0|
|Total|--|--|--|--|--|--|14,196|0|5,920|8,276|

 II. Post-holding
Majorworkingexperienceofdirectors,supervisorsandseniorexecutiveatthepresentinlatestfiveyears
1. Mr. Luo Guiyou, born in 1963, graduated from Fudan University as a bachelor majoring in history.Since Mar. of 2007, he worked in Life Insurance Holding Co., Ltd, and successively took posts of general manager of headquarter of personal insurance business, temporary committee of operation and management commission, associate of general manager of headquarter and committee ofmarketing management commission. From Mar. of 2010 to Oct. of 2010, he was committee of marketing management commission in planning team in Guangdong Branch of Life Insurance Holding Co., Ltd and charger of planning team of Guangdong Branch; now he takes chargeofchairmanoftheBoardandlegalrepresentativeoftheCompany.
2. Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the position of minister of development department, concurrently minister of science and technology department, assistant general manager, assistant to chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took the chairman and concurrently general manager of Guangdong Sunrise Holding Co., Ltd.; now,he is thechairmanofShenzhenLionaGroupCo.,Ltd.
3.Mr.LiHai,bornin1969,graduatedfromEconomicdepartmentofShenzhenUniversityinmajorofaccounting; he took the turns of deputy manager of finance department, chief supervisor associate of finance department, secretaryoftheBoardandvicepresident,etc.oftheCompany,andnowisinchargeofdirectorandvicepresident oftheCompany.
4. Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of Supervision Office, Deputy Manager of Sales Department, and Deputy Manager of LegalAffairs Department of Shenzhen Guomin Investment Development Co. Ltd. and deputy general manager of Administration Center of Compliant Risk Control, as well as director, secretary of the Board and convener of supervisory committee of CBC;nowheservesasdirectoroftheCompany.
5.Mr.CaoFang, bornin 1974,master degree;sinceMayof 2007,hetookpostof itemmanager ofmarketingand management department in headquarter of Life Insurance, associate of general manager of marketing and management headquarter as well as general manager of market and business department, he acted as member of planning team of Life Insurance Branch in Guangdong. And subsequently served in strategy and development center,Office of theChairman, Supervision office;he serves as deputy GM ofShanghai BranchofLife Insurance sinceMarch2012.
6. Ms. Kong Na, bornin 1976, master degree;From Sep. of 2005 toApr.of 2010, he took postofAssistant Chief
Executive in Ruifude Health Insurance Holding Co., Ltd. FromApr.of 2010 till now, he is in charge of associate
ofpresidentinYingkongHoldingCo.,Ltd.
7.Mr.CuiJun,bornin1964,partymember ofCPC,doctor ofengineering, master oflaw andafirst-grade lawyer;
once he took posts of director of the 5th session of nationwide lawyers association, director of the 8th session and the 9th session of Guangdong lawyer association, vice presidentof the 5th andthe 6thsession of Shenzhen lawyers association,committeeofinternationalbusinesscommissionofnationwidelawyers association,deputydirectorof law businessofintellectualpropertycommissionofGuangdonglawyers association,director ofcivil lawbusiness commission of Guangdong lawyers association and director of culture construction committee of Guangdong lawyers association. And now he is director of Guangdong Anke Law Firm, member of the CPPCC Shenzhen Committee, committee of law business of intellectual property commission of nationwide lawyers association, executive vice president of Shenzhen Patent Commission, vice president of Shenzhen promotion commission of creative design and intellectual property, arbitrator of mediation center of south China International economy and trade arbitration commission, mediation expert of mediation center and arbitrator of Shenzhen arbitration commission.
8. Mr. Chen Shujun, born in1968, master of the Chinese University of Hong Kong, majoring in business administration of finance, master of international accountant from City University of Hong Kong and he owes a university degree from law school of Tsinghua University. And he is senior accountant, China Certified Accountant,ChineseCertifiedTaxAgent,judicialauthenticatorandowesprofessionalqualificationofstatelaws; He once tookpostof auditorand manager of Guangzhou CPAs. From 1998till now heacted as executive partner of Shenzhen Guangzhou-Shenzhen CPAs, legal representative of Guangdong Guangzhou-Shenzhen Justice and Accounting judgment institution. Now he serves as the legislative consultants of standing committee ofGuangdongProvince12thsessionoftheNationalPeople’sCongress,memberofacouncilofGuangdongInstitute of Certified Public Accountants, assessment experts of Shenzhen Municipal Government Procurement Center, assessment experts of Shenzhen Municipal Science& Technology Committee of Experts and the first batch of seniormemberofAccountingSocietyofShenzhen.
9. Ms. Li Bing, born in 1975, bachelor of law major and lawyer; From Jul. of 1998 to Jan. of 2002 she taught in Guizhou University; from Jan. of 2002 to Jan. of 2006 she acted as lawyer in Guangdong Yunsheng Law Firm; fromJan.of2006tillnow,shehadbeeninchargeoflawyerofBeijingDehengLawFirmBranchinShenzhen. 10. Mr. Li Xiang, born in 1974, a master degree, and he used to served as organ secretary, director-general of the organiztion department, manager ofH&R dept. of Jiangxi Branch of Pacific Life. He serves as deputy GM of ShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.sinceMarch2008.
11. Mr. Zheng Zhonghuan, born in 1962, engineer with bachelor degree, successively took the post in Shenzhen Light Textile Industry Company and Shenzhen Light Industry Company; since Oct. 1985, worked in Shenzhen China Bicycle (Group) Holdings Co. Ltd. and successively took the post of Deputy Manager, Manager of Planning Department, Manager of Material Department and manufacturing dept.; now he is the supervisor of the CompanyandManagerofPurchasingDepartmentoftheShenzhenEmmelleIndustryCo.,Ltd..
12. Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior engineer of the Company in electrical& mechanical engineering division, GM assistant of Hunan Guangdian Motocycle Company, manager of the Company inH&R Dept. now he serves as commissioner of comprehensive officeoftheCompanyandpersoninchargeofthelaborunion.
13.Mr.SunLonglong,bornin1973,graduatedfromShanghaiUniversityofFinanceandEconomicsin1995with
a bachelor degree, a bachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao
Industry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd., he worked in the Company since May 1999, and successively served as Deputy Manager of financial department, manager of comprehensive management department, manager of enterprise management department, nowhe serves as secretaryof the Boardand manager offinancialdepartmentoftheCompany.
14. Mr. Xiao Yan, born in 1968, owes a bachelor of economics of HunanInstitute of Economics andFinance. He works inSinoLifeInsuranceCo.,Ltd.sinceOctober2006,hesuccessivelyservedasseniormanagerofenterprise supervision of the marketing management department in Sino-Life, GM assistant of Henan Branch of Sino-Life; serves asdeputyGM of managementcenterofShenzhen Guomin InvestmentDevelopment Co.,Ltd.;he resigned asthesupervisorandconvenerofsupervisorycommitteeoftheCompanyinJune2014.
15. Mr. Tao Hualiang, born in 1954, graduated from Northwestern Polytechnic University, an engineer. He successively served as dispatcher of welding plant of the Company, deputy director of pipe workshop, director of general assembly shop, committee of party committee of Longhua2# plant, manager assistant of enterprise managementdepartment, deputyGMoffinancial& accounting dept.ofbicycle division, deputydirectorof office anddirector ofcomprehensive officeofthe Group,deputy secretaryoftheParty andpersonin charge ofthelabor union;heresignedinJune2014
Post-holdinginshareholder’sunit
√Applicable □Notapplicable
|||||||
|-|-|-|-|-|-|
|Name|Nameofshareholder’sunits|Position|Startdatedofofficeterm|Enddateofofficeterm|Weatherreceivingremunerationfromshareholder’sunits|
|YaoZhengwang|ShenzhenGuochengEnergyInvestmentDevelopmentCo.,Ltd.|Supervisor|2006-10-09||Yes|
|Noteofpost-holdinginshareholder’sunit|N/A|||||

Post-holdinginotherunit
√Applicable □Notapplicable
|||||||
|-|-|-|-|-|-|
|Name|Nameofotherunits|Position|Startdatedofofficeterm|Enddateofofficeterm|Weather receivingremuneration fromotherunits|
|LuoGuiyou|ShenzhenFudeRealEstateInvestmentDevelopmentCo.,Ltd.||||Yes|
|CaoFang|ShanghaiBranchofLifeInsurance|DeputyGM|2012-03-01||Yes|
|YangFenbo|ShenzhenLiondaGroupCo.,Ltd.|Chairman|2009-10-12||Yes|
|YangFenbo|FawerAutoPartsCo.,ltd.|Non-staffsupervisor|2013-03-25|2016-03-24|Yes|

深圳中华自行车(集团)股份有限公司2014年年度报告全文
||||||
|-|-|-|-|-|
|KongNa|YingkongHoldingCo.,Ltd.|Presidentassistant|2010-04-01|Yes|
|CuiJun|GuangdongAnkeLawsFirm|Attorney||Yes|
|ChenShujun|ShenzhenGuangshenCPA|Managingpartner|1998-01-01|Yes|
|LiBing|BeijingDeheng(Shenzhen)LawFirm|Attorney|2006-01-02|Yes|
|Noteofpost-holdinginotherunit|N/A||||

III. Remuneration fordirectors, supervisors and seniorexecutives
Decision-making procedures, determination bases and actual payment of remunerations of directors, supervisors and senior management
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||According to relevant rules of the Article of Association, the general meeting of shareholders decidesremunerationofdirectorsandsupervisors.TheBoardofDirectorsdecidesseniormanagement’s.||||||||||||||||||||
|Decision|p|rocedure|||of|||||||||||||||||||||
|remuneration||of|directors,|||||||||||||||||||||||
|supervisors,||||senior||||||||||||||||||||||
|management||||||||||||||||||||||||||
|Confirmation basis ofremuneration of directors,supervisors and seniormanagement||||||TheCompanyreferstothepositionrankandcomprehensiveindustrylevel.Andthengeneralmeetingof||||||||||||||||||||
|||||||shareholders||approves||compensation|||standard|and|allowance||of|independent||directors.||According||to|the|
|||||||"Interim|Measures||to|Annua|l|Performance||Assessment||of|Executives"||and||performance||evaluation|||
|||||||standardstheCompanyissuesannualperformancesalary.||||||||||||||||||||
|Actual payment ofremuneration of directors,supervisors and seniormanagement||||||TheCompanystrictlypaidremunerationofdirectors,supervisorsandseniormanagementaccordinglywithdecisionprocedureandconfirmationbasis.Totalpaymentforremunerationofdirectors,supervisorsandsupervisorsamountedtoRMB1,592,000fromJanuarytoDecemberin2014.||||||||||||||||||||

Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In ten thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Name|Title|Sex|Age|Post-holdingstatus|TotalremunerationobtainedfromtheCompany|Totalremunerationobtainedfromshareholder’sunit|Remunerationactuallyobtainedatperiod-end|
|LiHai|Director,GM|M|46|Currentlyinoffice|74.6|0|74.6|
|CuiJun|Independentdirector|M|51|Currentlyinoffice|4.76|0|4.76|
|ChenShujun|Independentdirector|M|47|Currentlyinoffice|4.76|0|4.76|
|LiBing|Independentdirector|F|39|Currentlyin|4.76|0|4.76|

|||||||||
|-|-|-|-|-|-|-|-|
|||||office||||
|ZhengZhonghuan|Supervisor|M|53|Currentlyinoffice|16.62|0|16.62|
|LiJialin|StaffSupervisor|M|54|Currentlyinoffice|22.04|0|22.04|
|SunLonglong|SecretaryofBoard|M|42|Currentlyinoffice|31.66|0|31.66|
|TaoHualiang|StaffSupervisor|M|61|Officeleaving|0|0|0|
|Total|--|--|--|--|159.2|0|159.2|

 Delegatedequityincentivefordirectors,supervisorsandseniorexecutivesinreportingperiod
□Applicable√Notapplicable
IV.Changes ofdirectors, supervisors andseniorexecutives
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|
|XiaoYan|Convener ofsupervisors|Leavingend-of-tour|2014-06-27|Expirationofthetermoftransition|
|TaoHualiang|StaffSupervisor|Leavingend-of-tour|2014-06-27|Expirationofthetermoftransition|
|LiXiang|Convener ofsupervisors|Elected|2014-06-27|Transition|
|LiJialin|StaffSupervisor|Elected|2014-06-27|Transition|

V. Changes of core technology team or key technicians in reporting period (not including directors, supervisors andsenior executives)
Nil
VI.Particulars ofworkforce
1. The Company has totally 49 employees at present (8 people in HQ and 41 people in subsidiary EMMELLE included), including: Classified according to professional/occupational composition: 16 production personnel; 9 salespersons; 7 technicians; 6 financial personnel and 11 administrative personnel; Classified according to the educational background: master degree or above: 19 persons of bachelor degree; 17 persons of junior college graduates. Proportion of the personnel with education background of junior college or above in the whole staff:73.46%.
2.TheCompanydidnotneedtobeartheexpensesofretirees.
3.Otherpersonnel:0people
Section IX. Corporate governance
I.Briefintroductionofcorporategovernance
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|During th|e reportin|g period,|the|Company|was|strictly|i|n|accordance|with|the|"|Company|Law",|"Securitie|s|Law"|

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|as|well a|s "Listing|Corporatio|n|Management|Standards"|a|nd|other|relevant|laws,|regulations|and|normative|

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|document|s.We|combined|the|actuals|ituation,c|onstantly|improved|the|corporate|governance|structure,|and|strived|

|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|to|build a|modern e|nterprise|system.|Operation|, assembling|and|holding|of|genera|l|meeting|of|shareholders,|the|

||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Board|of|Directors|and|boar|d o|f|supervisors w|ere|strictly|with|relevant|rules|of|procedure|.|Thus|we|protected|

|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|interests|of the|Company|. T|he|actua|l|situation|of|corporat|e|governance|structure|was|in|accordance|with|the|

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|releaseof|normative|documents|about|the|listin|gCorporation|management|rules|from|China|Securities|Regulatory|

 Commission.
In reporitng period, the 7th session of the supervisory has expired. Theworker’s conference and annual general meeting of 2013 were held by the Company respectively dated 22 May 2014 and 27 June 2014, selected the staff supervisorandcompletedgeneralelectionforthe8thsessionofthesupervisory.
According to the current requirement of internal control, the first extraordinary general meeting of 2014 was held on 30 December 2014, deliberated and approved the “proposal of revised the‘Interim Measure on Special Fund Management of theBoard’” and “proposal of revised the‘Interim Measure on Assessment Reward of AnnualPerformanceforSeniorExecutives’”inordertoimprovedthecorporategovernancestructure.
IsthereanydifferencebetweenthecorporategovernanceandtheCompanyLawsandrelevantregulationsfromCSRC?
□Yes√□No
There is no difference between corporate governance and the requirements of the Company Law and relevant regulationsoftheCSRC.
Progressofthespecialactivityforcorporategovernance,establishmentandimplementationofinsiderinformation registrationmanagementsystem
Progressofthespecialactivityforcorporategovernance,establishmentandimplementationofinsiderinformation registration management system: The Company established Registration Management of Inside Information Insiders. It clearly defined scope of inside information and insiders, ruled approval, registration and confidentiality mechanism about inside information. During reporting period, no supervision and punishment actedfromsupervisiondepartment.
II. In the report period, the Company held annualshareholders’ general meeting and extraordinaryshareholders’general meeting
1.AnnualShareholders’GeneralMeetinginthereportperiod
|||||||
|-|-|-|-|-|-|
|Sessionofmeeting|Date|Nameofmeetingmotion|Situation|Dateofdisclosure|Indexofdisclosure|
|23rdMeetingofAnnualShareholders’ 2GeneralMeetingforyearof2013|014-06-27|”WorkReportfromtheBoardforyearof2013”, ”WorkReportfromSupervisoryCommitteeforyearof2013”,”FinancialResultsforyearof|Deliberatedandapprovedonebyone|2014-06-28|SecuritiesTimes,HongKongCommercialDaily|

||
|-|
|2013”,“ProfitDistributionPlanof2013”, ”AnnualReportof2013andSummary”, ”Rewardsof2013forManagementTeam”,”termof7thsessionofsupervisoryexpiredandelectiononsupervisorfor8thsessionofthesupervisory”|

2.Extraordinaryshareholders’generalmeetinginthereportperiod
|||||||
|-|-|-|-|-|-|
|Sessionofmeeting|Date|Nameofmeetingmotion|Situation|Dateofdisclosure|Indexofdisclosure|
|FirstExtraordinaryShareholders’GeneralMeetingof2014|2014-12-30|“Re-engagementofRuihuaCertifiedPublicAccountant(LLP)“,“proposalofrevisedthe‘InterimMeasureonSpecialFundManagementoftheBoard’”and“proposalofrevisedthe‘InterimMeasureonAssessmentRewardofAnnualPerformanceforSeniorExecutives’”|Deliberatedandapprovedonebyone|2014-12-31|SecuritiesTimes,HongKongCommercialDaily|

3.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore□Applicable√Notapplicable
III. Responsibility performance ofindependentdirectors inreport period
1.TheattendingofindependentdirectorstoBoardmeetingsandshareholders’generalmeeting
||||||||
|-|-|-|-|-|-|-|
|Theattendingofindependentdirectors|||||||
|Nameofindependentdirector|TimesofBoardmeeting|TimesofPresence|Timesofattendingby|Timesofentrusted|TimesofAbsence|WhetherabsenttheMeetingfor|

||||||||
|-|-|-|-|-|-|-|
||supposedtoattendinthereportperiod||communication|presence||thesecondtimeinarowornot|
|CuiJun|5|2|3|0|0|No|
|ChenShujun|5|2|3|0|0|No|
|LiBing|5|2|3|0|0|No|
|Timespresentedinshareholders’generalmeetingbyindependentdirectors||2|||||

ExplanationofabsenttheBoardMeetingforthesecondtimeinarow
Nil
2.Objectionforrelevanteventsfromindependentdirectors
Whetherindependentdirectorscomeupwithobjectionaboutcompany’srelevantmattersornot
□Yes√No
Independentdirectorshasnoobjectionsforrelevanteventsinreportingperiod
3.Otherexplanationaboutresponsibilityperformanceofindependentdirectors
Whethertheopinionsfromindependentdirectorshavebeenadoptedornot
√Yes□No
Independentdirectors’explanationonadoptionornotadoptionofrelevantrecommendationsoftheCompany
Thereisnoindependentdirectors’explanationnotadoptionofrelevantrecommendationsoftheCompany.
IV.Performance ofsubordinatecommittees of theBoard inreporting period
Board of directors set up audit commission and remuneration and appraisal commission taking responsibility based on Governance Rules of Listed Company, Article of Association as well as Procedure Rules of Board of Directorsandotherdutiesandrightsvariousdepartmentsendowed.
As for compiling and audit on annual financial report were checked and communicated byAudit commission in accordancewith rules ofWorking ProcedureofAnnualReportofAuditCommission, andthey submitted decision toboardofdirectorsforapproval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measure on Assessment Reward of Annual Performance for Senior Executives”, carry out evaluation on the management team members for operation works in 2013, and propose a annual reward plans. In line with the requirement of internal control, and actual current operation condition of the Company, propose the proposal of “revised the‘Interim Measure on Assessment Reward of Annual Performance for Senior Executives”, and submit for deliberationongeneralmeeting.
V.WorksfromSupervisory Committee
WhethertheCompanyhasrisksornotinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√No
Supervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod
VI. Independence of the Company in aspect of business, personnel, assets, institute and financerelative to its controllingshareholder
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owes independentandcompletedself-operationability.
||||
|-|-|-|
|VII|. Horizontal|competition|

□Applicable√Notapplicable
VIII.Appraisalandincentivemechanism forseniorexecutives
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|The|Company|i|nitially|established|the|standard|and|incentive|mechanism|for|open|a|nd|transparent|performance|

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|evaluation|on|directors,|supervisors|and|management|layer.|The|appointment|of|senior|management|staff|was|open|

||||||||||
|-|-|-|-|-|-|-|-|-|
|and|transparent,|in|accordance|with|provisions|of|the|law.|

Section X. Internal control
I.Constructionofinternalcontrol(IC)
Pursuit to the Basic Norms of Internal Control and relevant requirement of supporting guidelines, the Company successively established a three-level organization chart as leading group of IC implementation, working teams and business teams in 2011. Recruiting and selecting Smartdot Technologies Co., Ltd. (“Smartdot” for short) as theimplementationconsultantfortheregulationestbalishmentofICfortheCompany.
At the suggestion of consultant, the implementation range are defined as the headquarter of the Group, Shenzhen Emmelle Industry Co., Ltd. (“Emmelle” for short) and Shenzhen Le-An-Ju Property Management Co., Ltd. Consolidation range of the financial reprot of CBC including the above mentioned three companies and “CBC (International) Co., Ltd.” and “CBC (Hong Kong) Co., Ltd.”. Implementation range for the IC covers business activities with 100percentrevenue obtainedin cosolidated statement. The 13 IC key business procedures as sales and money-collection management defined by the Company, covers over 10 percent of the assets and revenue from major transaction activities, over 30 percent net assets and net profit from major transaction activities, andover95percentnetprofit’sbusinessactiviteisinstatementofCBCareincluded.
Under the help of consultant, IC implementation team and every busienss team clearing up the systems, and organizedvarysub-businessprocedures,well-definedriskcontrollingpointsandcontroldeficiencies,preparedthe risk matrix. Subsequently, project team formulated a regulating solution, every departments optimized the business in aspect of the relevant problems and deficits, improve the IC in aspect of the Company and business, the auditing deparment carried out following up inspection on the rectification works. Furthermore, exercise compliancetestandwalk-throughtestonIC fortheconrollingpoints,superviseandre-retificatedontheproblems being found, up to end of 2011, the Company formulated an internal control standards system that basically meet the requirements. In 2012, the Company continues to improve the IC procedures, revised system process of human resouces, finance and business, successively clear out the IC documents as mechanism manual, process manual,brandoperationhandbook,rentalbusinessmanualandfinancialreporthandbook;carriedoutexamination and evaluation regularly and irregularly on main business process and implementation of the IC, propose rectification suggestions on time and improved relevant mechanisms and procedures. In October 2012, Shenzhen IntermediatePeople’s Court accpeted the application of bankrupty proposed by creditor in accordance with the law, the Company entered into the bankruptcy reorganization procedures after that. The Company implemented self-management under the supervision by custodian, on basis of the original IC establishment and implementation, increased IC regulations in aspect of the supervision links, including seal management, source bank account appointed, source bank account management, budget, contract management and invoice management. Reorganization of the Company making progress in period from October 2012 to December 2013, on basis of the reorganization plan draft and equity adjsutment plan for theinvestor’s involved have been approved increditor’s meeting and group of capital contributors, the Shenzhen Intermediate Court approved the reorganziation plan in November 2013. With the completion of reorganization plan implemented, main assets disposal, stock-transfer and redemption of debts, on 27 December 2013, Shenzhen Intermediate Court bring in a verdict that the execution of reorganization plan of the Company is finished and close the bankrptcy procedures. After reorganization plan completed, bicycle business is perserved, and the implementation range for IC turns to the headquarter and Emmelle Company, comsolidation range for financial statement was the headquarter and EmmelleCompanyaswell.
Duringthereportingperiod,theCompanyhaskeptimprovingandstandardizingits internalcontrolorganizational structure strictly in compliance with the Securities Law, the Company Law and the applicable laws and regulations in respect of the governance of listed companies by CSRC, in order to ensure the standardized operation of theCompany’sshareholders’ meeting, the Board and the Board of Supervisors, and safeguard the interestsoftheCompanyandInvestors.
II.StatementoftheBoardonresponsibilityofinternalcontrol
Board of Directors promised thatthere’s no false, misleading statement or major leaking. All the disclosed informationwasreal,accurateandcomplete.
III.Basesforconstructionoffinancialreportinternalcontrol
The Company has established a perfect financial management system, including financial management and accounting management covering calculation, account dealing, budget management, cost control, capital management and other relevant rules and regulations. In line with the Basic Norms of Internal Control and Practice Note of Internal Control and requirment of Evaluation Guidelines of Internal Control, combine with actula condition, the Company formulated a serial systematic mechanism process as Internal Control Mechanism and Internal Control Manual. During the period, the Company organized professional team carried out examination and evaluation regularly and irregularly on the effectiveness and implementation of the IC system, andissuedtheSelf-evaluationReportofInternalControl
IV.Self-evaluation reportofinternal control
|||
|-|-|
|Detailsofmajordefectsinself-evaluationreportthatfoundinreportingperiod||
|Nosignificantdeficienciesintheinternalcontrolhavebeenidentifiedduringthereportingperiod.||
|Dateofself-evaluationreportofinternalcontroldisclosed(full-text)|2015-04-03|
|Indexofself-evaluationreportofinternalcontroldisclosed(full-text)|Self-evaluationreportofinternalcontrolforyearof2014,JuchaoWebsite|

V. Auditingreport andauthenticationreport ofinternal control
AuditingreportofIC
||
|-|
|DeliberationsectionofauditingreportofIC|
|IV.AuditingopinionofICoffinancialreportWe considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevantregulations,showsaneffectivenessinternalcontroloffinancialreportinallmajoraspectsdated31December2014.V.EmphasisofMatterWe bring to the attention of the users of auditing report of IC, China Bicycle Company has completed implementation of therestructuring plan dated 27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction ofinvestorshasbeensetoutwithaviewtorestoringitsabilitytocontinueasagoingconcernanditssustainableprofitabilitythroughassetrestructuring.Uptothereportingdateofauditing,theCompanyhasnotintroducedanyinvestor,butretainedthebusinessofbicyclessoastomaintainitsabilitytocontinueasagoingconcernbeforetheinjectionofassetsbyinvestors.Therefore, thereisuncertaintyintheabilityofChinaBicycleCompanytocontinueasagoingconcern,anditisstressedthatthepublishedopinionsonauditingwillnotbeimpactedbythesubjectmatter.|

|||
|-|-|
|Disclosuredateofauditreportofinternalcontrol(full-text)|2015-04-03|
|Indexofauditreportofinternalcontrol(full-text)|RuiHuaZhuanShenZi[2015]No.48030016“AuditingReportofInternalControlforyearof2014”,Juchaowebsite|

Issuedamodifiedauditopinionsforinternalcontrol
√Yes□No
ExplanationonmodifiedauditopinionsforinternalcontrolissuedbyCPA
RuihuaCertified Public Accountants (LLP) issued a qualified audit opinions with explanatory notes for the internal control of 2014. Ruihua CPAconsiders that the Company, in line with Basic Norms of Internal Control and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2014. With the explanatory notes attached, remind users of the internal control auditing report, the Company has completed implementation of the restructuring plan dated 27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investors has been set out with a view to restoring its ability to continue as a going concern and its sustainable profitability through asset restructuring. Up to the reporting date of auditing, the Company has not introduced any investor, but retained the business of bicycles so as to maintain its ability to continue as a going concern before the injection of assets by investors. Therefore, there is uncertainty in the ability of China Bicycle Company to continue as a going concern, and it is stressedthatthepublishedopinionsonauditingwillnotbeimpactedbythesubjectmatter.
AuditingreportofinternalcontrolissuedbyCPAshowsthesameopinionasself-evaluationreportissuedbytheBoard
√Yes□No
VI.Establishment and enforcement of Accountability Mechanism for Major Errors in Annual Report
||
|-|
|In order to strengthen the Company's financial accountability mechanisms, to further improve the interna|
|management system, the Company formulated the "Accountability System on Major Error Made in Information|
|Disclosure” and strictly implemented it. During the reporting period, the Company did never correct significan|
|accountingerror,supplementmajorinformationomissionsandreviseperformancepre-noticeetc.|

Section XI. Financial Report
I.Auditreport
|||
|-|-|
|Typeofauditopinion|Unqualifiedauditor’sreportwithexplanatoryparagraph|
|Signingdateofauditreport|2015-04-01|
|Nameofauditinstitute|RuihuaCertifiedPublicAccountant(LLP)|
|Documentserialofauditreport|RuihuaShenZi[2015]No.48030032|
|NameofCPA|ChenSongbo,RenWeixing|

Textofauditor’sReport
Auditor’sReport
RuihuaShenZi[2015]No.48030032 ToallshareholdersofShenzhenChinaBicycleCompany(Holdings)Limited
We have audited the Companying consolidated and parentCompany’s financial statements of Shenzhen China Bicycle Company (Holdings) Limited (“CBC”), including balance sheet of 31 December 2014, and profit statement for year of 2014, cash flow statement and statement on changes ofshareholders’ equity for the year ended,andnotestothefinancialstatementsfortheyearended.
I.Management’sresponsibilityforthefinancialstatements
Management of the Company is responsible for prepare and present financial statement of the Company, which including: (1) Prepare financial statements with fair presentation in line with Accounting Standards for Business Enterprises; (2) Designing, executed and maintaining necessary internal control in order to prevent fundamental miscarryinginfinancialstatementfromfraudulentorerrors.
II.Auditor'sresponsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We performed our audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards require us to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assurance aboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the financial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of the risk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluating risk,weconsiderinternalcontrolrelatedtofinancialstatements,inordertodesignauditingprocedures,butnotfor the purpose of expressing an opinion on the internal control's effectiveness. An audit also includes assessing the appropriateness of the accounting policies adopted and the reasonableness of the accounting estimates made by management,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our audit
opinion.
III.Auditingopinion
In our opinion, in all material aspects,CBC’s financial statements have been prepared in accordance with the Enterprises Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the consolidated and parentcompany’s as of December 31, 2014, and its operation results and cash flows for theyearended.
IV.EmphasisofMatter
We bring to the attention of the users of the financial statements, as stated in note XII of the financial statements under the name of CBC, China Bicycle Company has completed implementation of the restructuring plan dated 27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investors has been set out with a view to restoring its ability to continue as a going concern and its sustainable profitability throughassetrestructuring. Uptothereportingdateofauditing,theCompanyhasnotintroducedanyinvestor,but retainedthe businessofbicycles soasto maintain its ability tocontinueasagoing concernbeforethe injectionof assets byinvestors. Therefore,thereis uncertaintyinthe abilityof ChinaBicycle Companytocontinueas agoing concern,anditisstressedthatthepublishedopinionsonauditingwillnotbeimpactedbythesubjectmatter. RuihuaCPAs(LLP) ChineseCPA:ChenSongbo
Beijing·China ChineseCPA:RenWeixing
1April2015
II. Financialstatement
UnitinnoteoffinancialstatementreferstoCNY:RMB(Yuan)
1.Consolidated BalanceSheet
PreparedbyShenzhenChinaBicycleCompany(Holdings)Limited
InRMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Currentassets:|||
|Monetaryfunds|30,163,866.78|26,834,171.59|
|Settlementprovisions|||
|Capitallent|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notesreceivable|2,200,000.00||
|Accountsreceivable|6,790,982.50|7,060,251.28|
|Accountspaidinadvance|348,277.01|177,636.49|
|Insurancereceivable|||
|Reinsurancereceivables|||

||||
|-|-|-|
|Contract reserve of reinsurancereceivable|||
|Interestreceivable|||
|Dividendreceivable|||
|Otherreceivables|511,254.81|107,395,429.69|
|Purchaserestitutedfinanceasset|||
|Inventories|6,171,307.53|4,545,116.43|
|Dividedintoassetsheldforsale|||
|Non-current asset due within oneyear|||
|Othercurrentassets|||
|Totalcurrentassets|46,185,688.63|146,012,605.48|
|Non-currentassets:|||
|Loansandpaymentsonbehalf|||
|Financeassetavailableforsales|||
|Held-to-maturityinvestment|||
|Long-termaccountreceivable|||
|Long-termequityinvestment|||
|Investmentproperty|||
|Fixedassets|773,961.84|227,824.37|
|Constructioninprogress|||
|Engineeringmaterial|||
|Disposaloffixedasset|||
|Productivebiologicalasset|||
|Oilandgasasset|||
|Intangibleassets|4,518,000.00|5,271,000.00|
|Expense on Research andDevelopment|||
|Goodwill|||
|Long-term expenses to beapportioned|||
|Deferredincometaxasset|11,997.08||
|Othernon-currentasset|||
|Totalnon-currentasset|5,303,958.92|5,498,824.37|
|Totalassets|51,489,647.55|151,511,429.85|
|Currentliabilities:|||
|Short-termloans|||

||||
|-|-|-|
|Loanfromcentralbank|||
|Absorbing deposit and interbankdeposit|||
|Capitalborrowed|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notespayable|||
|Accountspayable|10,278,377.96|9,935,720.73|
|Accountsreceivedinadvance|2,595,736.07|3,627,323.31|
|Selling financial asset ofrepurchase|||
|Commission charge andcommissionpayable|||
|Wagepayable|1,772,814.72|1,516,624.17|
|Taxespayable|2,232,187.80|93,778,253.57|
|Interestpayable|||
|Dividendpayable|||
|Otheraccountspayable|21,114,424.93|34,954,734.89|
|Reinsurancepayables|||
|Insurancecontractreserve|||
|Securitytradingofagency|||
|Securitysalesofagency|||
|Dividedintoliabilityheldforsale|||
|Non-currentliabilitiesduewithin1year|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|37,993,541.48|143,812,656.67|
|Non-currentliabilities:|||
|Long-termloans|||
|Bondspayable|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Long-termaccountpayable|||
|Long-termwagespayable|||
|Specialaccountspayable|||

||||
|-|-|-|
|Projectedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|||
|Totalliabilities|37,993,541.48|143,812,656.67|
|Owner’sequity:|||
|Sharecapital|551,347,947.00|551,347,947.00|
|Otherequityinstrument|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Capitalpublicreserve|627,834,243.83|627,819,910.12|
|Less:Inventoryshares|||
|Othercomprehensiveincome|||
|Reasonablereserve|||
|Surpluspublicreserve|32,673,227.01|32,673,227.01|
|Provisionofgeneralrisk|||
|Retainedprofit|-1,199,952,070.17|-1,204,837,748.73|
|Total owner’s equity attributable toparentcompany|11,903,347.67|7,003,335.40|
|Minorityinterests|1,592,758.40|695,437.78|
|Totalowner’sequity|13,496,106.07|7,698,773.18|
|Totalliabilitiesandowner’sequity|51,489,647.55|151,511,429.85|

 Legal Representative: Luo Guiyou Person in charge of Accounting Works: Li Hai PersoninchargeofAccountingInstitution:SunLonglong
2.BalanceSheetofParentCompany
InRMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Currentassets:|||
|Monetaryfunds|1,363,097.01|1,080,836.82|
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||

||||
|-|-|-|
|Derivativefinancialliability|||
|Notesreceivable|||
|Accountsreceivable|694,416.00|245,382.00|
|Accountpaidinadvance|140,275.00||
|Interestreceivable|||
|Dividendsreceivable|||
|Otherreceivables|13,714,033.12|116,990,372.76|
|Inventories|||
|Dividedintoassetsheldforsale|||
|Non-currentassetsmaturingwithinoneyear|||
|Othercurrentassets|||
|Totalcurrentassets|15,911,821.13|118,316,591.58|
|Non-currentassets:|||
|Available-for-salefinancialassets|||
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|10,379.73|10,379.73|
|Investmentproperty|||
|Fixedassets|624,330.89|109,020.00|
|Constructioninprogress|||
|Projectmaterials|||
|Disposaloffixedassets|||
|Productivebiologicalassets|||
|Oilandnaturalgasassets|||
|Intangibleassets|4,518,000.00|5,271,000.00|
|Researchanddevelopmentcosts|||
|Goodwill|||
|Long-termdeferredexpenses|||
|Deferredincometaxassets|||
|Othernon-currentassets|||
|Totalnon-currentassets|5,152,710.62|5,390,399.73|
|Totalassets|21,064,531.75|123,706,991.31|
|Currentliabilities:|||

||||
|-|-|-|
|Short-termborrowings|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notespayable|||
|Accountspayable|294,300.00||
|Accountsreceivedinadvance|||
|Wagepayable|568,210.39|6,847.09|
|Taxespayable|309,944.51|92,205,392.56|
|Interestpayable|||
|Dividendpayable|||
|Otheraccountspayable|11,694,785.72|26,103,724.68|
|Dividedintoliabilityheldforsale|||
|Non-currentliabilitiesduewithin1year|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|12,867,240.62|118,315,964.33|
|Non-currentliabilities:|||
|Long-termloans|||
|Bondspayable|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Long-termaccountpayable|||
|Long-termwagespayable|||
|Specialaccountspayable|||
|Projectedliabilities|||
|Deferredincome|||
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|||
|Totalliabilities|12,867,240.62|118,315,964.33|
|Owners’equity:|||
|Sharecapita|551,347,947.00|551,347,947.00|

||||
|-|-|-|
|Otherequityinstrument|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Capitalpublicreserve|627,834,243.83|627,819,910.12|
|Less:Inventoryshares|||
|Othercomprehensiveincome|||
|Reasonablereserve|||
|Surplusreserve|32,673,227.01|32,673,227.01|
|Retainedprofit|-1,203,658,126.71|-1,206,450,057.15|
|Totalowner’sequity|8,197,291.13|5,391,026.98|
|Totalliabilitiesandowner’sequity|21,064,531.75|123,706,991.31|

 3.ConsolidatedProfitStatement
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|
|I.Totaloperatingincome|212,070,585.77|271,111,736.07|
|Including:Operatingincome|212,070,585.77|271,111,736.07|
|Interestincome|||
|Insurancegained|||
|Commissionchargeandcommissionincome|||
|II.Totaloperatingcost|218,798,040.74|336,247,395.00|
|Including:Operatingcost|198,964,665.65|243,225,629.45|
|Interestexpense|||
|Commissionchargeandcommissionexpense|||
|Cashsurrendervalue|||
|Netamountofexpenseofcompensation|||
|Netamountofwithdrawalofinsurancecontractreserve|||
|Bonusexpenseofguaranteeslip|||
|Reinsuranceexpense|||
|Operatingtaxandextras|508,902.12|1,745,928.88|

||||
|-|-|-|
|Salesexpenses|5,340,463.40|6,723,428.32|
|Administrationexpenses|14,108,887.56|85,815,079.74|
|Financialexpenses|-173,453.60|-1,299,434.00|
|Lossesofdevaluationofasset|48,575.61|36,762.61|
|Add:Changingincomeoffairvalue(Lossislistedwith“-”)|||
|Investmentincome(Lossislistedwith“-”)||72,934,048.27|
|Including:Investmentincomeonaffiliatedcompanyandjointventure|||
|Exchangeincome(Lossislistedwith“-”)|||
|III.Operatingprofit (Lossislistedwith“-”)|-6,727,454.97|7,798,389.34|
|Add:Non-operatingincome|14,685,352.23|1,945,555,480.90|
|Including:Disposalgainsofnon-currentasset|39,731.46|1,611,736,449.40|
|Less:Non-operatingexpense|29,038.00|284,495,050.48|
|Including:Disposallossofnon-currentasset|5,880.00|45,935.56|
|IV.TotalProfit (Lossislistedwith“-”)|7,928,859.26|1,668,858,819.76|
|Less:Incometaxexpense|2,145,860.08|93,000,059.74|
|V.Netprofit(Netlossislistedwith“-”)|5,782,999.18|1,575,858,760.02|
|Netprofitattributabletoowner’sofparentcompany|4,885,678.56|1,575,223,894.89|
|Minorityshareholders’gainsandlosses|897,320.62|634,865.13|
|VI.Netafter-taxofothercomprehensiveincome|||
|Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany|||
|(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss|||
|1.Changesasaresultofre-measurementofnetdefinedbenefitplanliabilityorasset|||

||||
|-|-|-|
|2.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillnotbereclassifiedsubsequentlytoprofitandloss|||
|(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss|||
|1.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillbereclassifiedsubsequentlytoprofitorloss|||
|2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets|||
|3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets|||
|4.Theeffecthedgingportionofgainsorlossesarisingfromcashflowhedginginstruments|||
|5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements|||
|6.Other|||
|Netafter-taxofothercomprehensiveincomeattributabletominorityshareholders|||
|VII.Totalcomprehensiveincome|5,782,999.18|1,575,858,760.02|
|TotalcomprehensiveincomeattributabletoownersofparentCompany|4,885,678.56|1,575,223,894.89|
|Totalcomprehensiveincomeattributabletominorityshareholders|897,320.62|634,865.13|
|VIII.Earningspershare:|||
|(i)Basicearningspershare|0.0089|2.8570|
|(ii)Dilutedearningspershare|0.0089|2.8570|

EnterprisecombineunderthesamecontrolinthePeriod,thecombinedpartyrealizednetprofitof0Yuanbeforecombination,and
realized0Yuanatlastperiodforcombinedparty
Legal Representative: Luo Guiyou Person in charge of Accounting Works: Li Hai PersoninchargeofAccountingInstitution:SunLonglong
4.ProfitStatementofParentCompany
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|
|I.Operatingincome|7,287,880.92|26,304,548.63|
|Less:Operatingcost|4,505,933.46|9,061,591.72|
|Operatingtaxandextras|195,188.86|1,230,470.42|
|Salesexpenses|||
|Administrationexpenses|13,181,561.45|84,590,538.81|
|Financialexpenses|1,734.98|-1,069,788.29|
|Lossesofdevaluationofasset|587.29||
|Add:Changingincomeoffairvalue(Lossislistedwith“-”)|||
|Investmentincome(Lossislistedwith“-”)|||
|Including:Investmentincomeonaffiliatedcompanyandjointventure|||
|II.Operatingprofit (Lossislistedwith“-”)|-10,597,125.12|-67,508,264.03|
|Add:Non-operatingincome|14,532,283.73|1,945,490,380.90|
|Including:Disposalgainsofnon-currentasset|||
|Less:Non-operatingexpense|23,158.00|284,450,319.19|
|Including:Disposallossofnon-currentasset|||
|III.TotalProfit (Lossislistedwith“-”)|3,912,000.61|1,593,531,797.68|
|Less:Incometaxexpense|1,120,070.17|92,388,206.44|
|IV.Netprofit(Netlossislistedwith“-”)|2,791,930.44|1,501,143,591.24|
|V.Netafter-taxofothercomprehensiveincome|||
|(I)Othercomprehensiveincome|||

||||
|-|-|-|
|itemswhichwillnotbereclassifiedsubsequentlytoprofitofloss|||
|1.Changesasaresultofre-measurementofnetdefinedbenefitplanliabilityorasset|||
|2.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillnotbereclassifiedsubsequentlytoprofitandloss|||
|(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss|||
|1.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillbereclassifiedsubsequentlytoprofitorloss|||
|2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets|||
|3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets|||
|4.Theeffecthedgingportionofgainsorlossesarisingfromcashflowhedginginstruments|||
|5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements|||
|6.Other|||
|VI.Totalcomprehensiveincome|2,791,930.44|1,501,143,591.24|
|VII.Earningspershare:|||
|(i)Basicearningspershare|0.0051|2.7227|
|(ii)Dilutedearningspershare|0.0051|2.7227|

 5.ConsolidatedCashFlowStatement
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|

||||
|-|-|-|
|I.Cashflowsarisingfromoperatingactivities:|||
|Cashreceivedfromsellingcommoditiesandprovidinglaborservices|108,375,320.26|152,281,740.80|
|Netincreaseofcustomerdepositandinterbankdeposit|||
|Netincreaseofloanfromcentralbank|||
|Netincreaseofcapitalborrowedfromotherfinancialinstitution|||
|Cashreceivedfromoriginalinsurancecontractfee|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseofinsuredsavingsandinvestment|||
|Netincreaseofamountfromdisposalfinancialassetsthatmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Cashreceivedfrominterest,commissionchargeandcommission|||
|Netincreaseofcapitalborrowed|||
|Net increase of returned businesscapital|||
|Write-backoftaxreceived|||
|Other cash received concerningoperatingactivities|115,592,208.06|31,778,429.76|
|Subtotal of cash inflow arising fromoperatingactivities|223,967,528.32|184,060,170.56|
|Cash paid for purchasingcommodities and receiving laborservice|96,445,270.32|133,314,908.16|
|Netincreaseofcustomerloansandadvances|||
|Netincreaseofdepositsincentralbankandinterbank|||
|Cash paid for original insurance|||

||||
|-|-|-|
|contractcompensation|||
|Cashpaidforinterest,commissionchargeandcommission|||
|Cash paid for bonus of guaranteeslip|||
|Cashpaidto/forstaffandworkers|9,113,860.33|40,519,453.59|
|Taxespaid|96,588,723.27|5,431,161.32|
|Other cash paid concerningoperatingactivities|17,898,626.22|33,004,815.35|
|Subtotal of cash outflow arising fromoperatingactivities|220,046,480.14|212,270,338.42|
|Netcashflowsarisingfromoperatingactivities|3,921,048.18|-28,210,167.86|
|II.Cashflowsarisingfrominvestingactivities:|||
|Cashreceivedfromrecoveringinvestment|||
|Cashreceivedfrominvestmentincome|||
|Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets|100,500.00|1,660,347,221.12|
|Netcashreceivedfromdisposalofsubsidiariesandotherunits|||
|Other cash received concerninginvestingactivities|||
|Subtotalofcashinflowfrominvestingactivities|100,500.00|1,660,347,221.12|
|Cash paid for purchasing fixed,intangibleandotherlong-termassets|691,852.99|5,384,449.06|
|Cashpaidforinvestment||10,379.73|
|Netincreaseofmortgagedloans|||
|Netcashreceivedfromsubsidiariesandotherunitsobtained|||
|Other cash paid concerninginvestingactivities||1,233,179.43|
|Subtotalofcashoutflowfrominvestingactivities|691,852.99|6,628,008.22|

||||
|-|-|-|
|Netcashflowsarisingfrominvestingactivities|-591,352.99|1,653,719,212.90|
|III.Cashflowsarisingfromfinancingactivities|||
|Cash received from absorbinginvestment|||
|Including: Cash received fromabsorbing minority shareholders’investmentbysubsidiaries|||
|Cashreceivedfromloans|||
|Cashreceivedfromissuingbonds|||
|Other cash received concerningfinancingactivities||5,390,399.73|
|Subtotalofcashinflowfromfinancingactivities||5,390,399.73|
|Cashpaidforsettlingdebts||1,621,460,634.04|
|Cash paid for dividend and profitdistributingorinterestpaying|||
|Including:Dividendandprofitofminorityshareholderpaidbysubsidiaries|||
|Other cash paid concerningfinancingactivities||35,000,000.00|
|Subtotalofcashoutflowfromfinancingactivities||1,656,460,634.04|
|Netcashflowsarisingfromfinancingactivities||-1,651,070,234.31|
|IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate|||
|V. Net increase of cash and cashequivalents|3,329,695.19|-25,561,189.27|
|Add: Balance of cash and cashequivalentsattheperiod-begin|26,834,171.59|52,395,360.86|
|VI.Balanceofcashandcashequivalentsattheperiod-end|30,163,866.78|26,834,171.59|

6.CashFlowStatementofParentCompany
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|
|I.Cashflowsarisingfromoperatingactivities:|||
|Cashreceivedfromsellingcommoditiesandprovidinglaborservices|||
|Write-backoftaxreceived|||
|Othercashreceivedconcerningoperatingactivities|124,889,662.76|34,909,756.83|
|Subtotalofcashinflowarisingfromoperatingactivities|124,889,662.76|34,909,756.83|
|Cashpaidforpurchasingcommoditiesandreceivinglaborservice|||
|Cashpaidto/forstaffandworkers|5,757,714.66|35,209,438.17|
|Taxespaid|93,606,825.19|2,667,326.25|
|Other cash paid concerningoperatingactivities|24,682,497.75|31,239,631.17|
|Subtotal of cash outflow arising fromoperatingactivities|124,047,037.60|69,116,395.59|
|Netcashflowsarisingfromoperatingactivities|842,625.16|-34,206,638.76|
|II.Cashflowsarisingfrominvestingactivities:|||
|Cashreceivedfromrecoveringinvestment|||
|Cashreceivedfrominvestmentincome|||
|Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets||1,660,315,221.12|
|Netcashreceivedfromdisposalofsubsidiariesandotherunits|||
|Other cash received concerninginvestingactivities|||
|Subtotalofcashinflowfrominvesting||1,660,315,221.12|

||||
|-|-|-|
|activities|||
|Cash paid for purchasing fixed,intangibleandotherlong-termassets|560,364.97|5,380,020.00|
|Cashpaidforinvestment||10,379.73|
|Net cash received fromsubsidiariesandotherunits|||
|Other cash paid concerninginvestingactivities|||
|Subtotalofcashoutflowfrominvestingactivities|560,364.97|5,390,399.73|
|Netcashflowsarisingfrominvestingactivities|-560,364.97|1,654,924,821.39|
|III.Cashflowsarisingfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||
|Cashreceivedfromloans|||
|Cashreceivedfromissuingbonds|||
|Other cash received concerningfinancingactivities||5,390,399.73|
|Subtotalofcashinflowfromfinancingactivities||5,390,399.73|
|Cashpaidforsettlingdebts||1,621,460,634.04|
|Cash paid for dividend and profitdistributingorinterestpaying|||
|Other cash paid concerningfinancingactivities||35,000,000.00|
|Subtotalofcashoutflowfromfinancingactivities||1,656,460,634.04|
|Netcashflowsarisingfromfinancingactivities||-1,651,070,234.31|
|IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate|||
|V. Net increase of cash and cashequivalents|282,260.19|-30,352,051.68|
|Add: Balance of cash and cashequivalentsattheperiod-begin|1,080,836.82|31,432,888.50|

||||
|-|-|-|
|VI.Balanceofcashandcashequivalentsattheperiod-end|1,363,097.01|1,080,836.82|

7.StatementofChangesinOwners’Equity(Consolidated)
ThisPeriod
InRMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|ThisPeriod|||||||||||||
||Owners’equityattributabletoparentcompany|||||||||||Minorityinterests|Totalowners’equity|
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Provision ofgeneralrisk|Retainedprofit|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|I.Balanceattheendofthelastyear|551,347,947.00||||627,819,910.12||||32,673,227.01||-1,204,837,748.73|695,437.78|7,698,773.18|
|Add:Changes ofaccountingpolicy||||||||||||||
|Errorcorrection of thelastperiod||||||||||||||
|Enterprisecombine underthesamecontrol||||||||||||||
|Other||||||||||||||
|II. Balance at thebeginning of thisyear|551,347,947.00||||627,819,910.12||||32,673,227.01||-1,204,837,748.73|695,437.78|7,698,773.18|
|III. Increase/Decrease in thisyear (Decrease islistedwith“-”)|||||14,333.71||||||4,885,678.56|897,320.62|5,797,332.89|
|(i) Totalcomprehensiveincome|||||||||||4,885,678.56|897,320.62|5,782,999.18|
|(ii) Owners’devoted anddecreasedcapital||||||||||||||
|1.Common sharesinvested byshareholders||||||||||||||

||||||||
|-|-|-|-|-|-|-|
|2. Capital investedbyholdersofotherequityinstruments|||||||
|3. Amountreckoned intoownersequitywithshare-basedpayment|||||||
|4.Other|||||||
|(III) Profitdistribution|||||||
|1. Withdrawal ofsurplusreserves|||||||
|2. Withdrawal ofgeneral riskprovisions|||||||
|3. Distribution forowners (orshareholders)|||||||
|4.Other|||||||
|(IV) Carryingforward internalowners’equity|||||||
|1. Capital reservesconversed tocapital (sharecapital)|||||||
|2.Surplusreservesconversed tocapital (sharecapital)|||||||
|3. Remedying losswith surplusreserve|||||||
|4.Other|||||||
|(V) Reasonablereserve|||||||
|1. Withdrawal inthereportperiod|||||||
|2. Usage in thereportperiod|||||||
|(VI)Others||14,333.71||||14,333.71|
|IV. Balance at theend of the reportperiod|551,347,947.00|627,834,243.83|32,673,227.01|-1,199,952,070.17|1,592,758.40|13,496,106.07|

LastPeriod
InRMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|LastPeriod|||||||||||||
||Owners’equityattributabletotheparentCompany|||||||||||Minorityinterests|Totalowners’equity|
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Provision ofgeneralrisk|Retainedprofit|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|I. Balance at theendofthelastyear|551,347,947.00||||486,589,213.20||||32,673,227.01||-2,780,061,643.62|60,572.65|-1,709,390,683.76|
|Add:Changes ofaccountingpolicy||||||||||||||
|Errorcorrection of thelastperiod||||||||||||||
|Enterprisecombine under thesamecontrol||||||||||||||
|Other||||||||||||||
|II. Balance at thebeginning of thisyear|551,347,947.00||||486,589,213.20||||32,673,227.01||-2,780,061,643.62|60,572.65|-1,709,390,683.76|
|III. Increase/Decrease in thisyear (Decrease islistedwith“-”)|||||141,230,696.92||||||1,575,223,894.89|634,865.13|1,717,089,456.94|
|(i) Totalcomprehensiveincome|||||||||||1,575,223,894.89|634,865.13|1,575,858,760.02|
|(ii) Owners’devoted anddecreasedcapital|||||141,230,696.92||||||||141,230,696.92|
|1.Common sharesinvested byshareholders||||||||||||||
|2. Capital investedbyholdersofotherequityinstruments||||||||||||||
|3. Amountreckoned intoownersequitywith||||||||||||||

||||||||
|-|-|-|-|-|-|-|
|share-basedpayment|||||||
|4Other|||||||
|(III) Profitdistribution|||||||
|1. Withdrawal ofsurplusreserves|||||||
|2. Withdrawal ofgeneral riskprovisions|||||||
|3. Distribution forowners (orshareholders)|||||||
|4.Other||141,230,696.92||||141,230,696.92|
|(IV) Carryingforward internalowners’equity|||||||
|1. Capital reservesconversed tocapital (sharecapital)|||||||
|2.Surplusreservesconversed tocapital (sharecapital)|||||||
|3. Remedying losswith surplusreserve|||||||
|4.Other|||||||
|(V)Reasonablereserve|||||||
|1. Withdrawal inthereportperiod|||||||
|2. Usage in thereportperiod|||||||
|(VI)Others|||||||
|IV. Balance at theend of the reportperiod|551,347,947.00|627,819,910.12|32,673,227.01|-1,204,837,748.73|695,437.78|7,698,773.18|

8.StatementofChangesinOwners’Equity(ParentCompany)
ThisPeriod
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|ThisPeriod|||||||||||
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Retainedprofit|Totalowners’equity|
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||
|I. Balance at theendofthelastyear|551,347,947.00||||627,819,910.12||||32,673,227.01|-1,206,450,057.15|5,391,026.98|
|Add:Changesof accountingpolicy||||||||||||
|Errorcorrectionofthelastperiod||||||||||||
|Other||||||||||||
|II. Balance at thebeginning of thisyear|551,347,947.00||||627,819,910.12||||32,673,227.01|-1,206,450,057.15|5,391,026.98|
|III. Increase/Decrease in thisyear (Decrease islistedwith“-”)|||||14,333.71|||||2,791,930.44|2,806,264.15|
|(i) Totalcomprehensiveincome||||||||||2,791,930.44|2,791,930.44|
|(ii) Owners’devoted anddecreasedcapital||||||||||||
|1.Common sharesinvested byshareholders||||||||||||
|2. Capital investedbyholdersofotherequityinstruments||||||||||||
|3. Amountreckoned intoownersequitywithshare-basedpayment||||||||||||
|4.Other||||||||||||
|(III) Profitdistribution||||||||||||
|1. Withdrawal ofsurplusreserves||||||||||||

|||||||
|-|-|-|-|-|-|
|2.Distributionforowners(orshareholders)||||||
|3.Other||||||
|(IV) Carryingforward internalowners’equity||||||
|1. Capital reservesconversed tocapital (sharecapital)||||||
|2.Surplusreservesconversed tocapital (sharecapital)||||||
|3. Remedying losswith surplusreserve||||||
|4.Other||||||
|(V) Reasonablereserve||||||
|1. Withdrawal inthereportperiod||||||
|2. Usage in thereportperiod||||||
|(VI)Others||14,333.71|||14,333.71|
|IV. Balance at theend of the reportperiod|551,347,947.00|627,834,243.83|32,673,227.01|-1,203,658,126.71|8,197,291.13|

Lastperiod
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Lastperiod|||||||||||
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Retainedprofit|Totalowners’equity|
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||
|I. Balance at theendofthelastyear|551,347,947.00||||486,589,213.20||||32,673,227.01|-2,707,593,648.39|-1,636,983,261.18|
|Add:Changesof accountingpolicy||||||||||||

|||||||
|-|-|-|-|-|-|
|Errorcorrectionofthelastperiod||||||
|Other||||||
|II. Balance at thebeginning of thisyear|551,347,947.00|486,589,213.20|32,673,227.01|-2,707,593,648.39|-1,636,983,261.18|
|III. Increase/Decrease in thisyear (Decrease islistedwith“-”)||141,230,696.92||1,501,143,591.24|1,642,374,288.16|
|(i) Totalcomprehensiveincome||||1,501,143,591.24|1,501,143,591.24|
|(ii) Owners’devoted anddecreasedcapital||141,230,696.92|||141,230,696.92|
|1.Common sharesinvested byshareholders||||||
|2. Capital investedbyholdersofotherequityinstruments||||||
|3. Amountreckoned intoownersequitywithshare-basedpayment||||||
|4.Other||141,230,696.92|||141,230,696.92|
|(III) Profitdistribution||||||
|1. Withdrawal ofsurplusreserves||||||
|2.Distributionforowners(orshareholders)||||||
|3.Other||||||
|(IV) Carryingforward internalowners’equity||||||
|1. Capital reservesconversed tocapital (sharecapital)||||||
|2.Surplusreservesconversed to||||||

|||||||
|-|-|-|-|-|-|
|capital (sharecapital)||||||
|3. Remedying losswith surplusreserve||||||
|4.Other||||||
|(V) Reasonablereserve||||||
|1. Withdrawal inthereportperiod||||||
|2. Usage in thereportperiod||||||
|(VI)Others||||||
|IV. Balance at theend of the reportperiod|551,347,947.00|627,819,910.12|32,673,227.01|-1,206,450,057.15|5,391,026.98|

III.CompanyProfile
(I)CompanyProfile
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. The Company reserves the business license for the enterprise legal person (QGYSZFZ No.101165)[the registered number has been altered as440301501122085] withtheregisteredcapitalofRMB551,347,947.00.
(II)BusinessScopeandOperation
TheCompanybelongstothemachinerymanufactureindustryandmainlyengagesintheproductionandassembly of various bicycles and spare parts, components, parts, mechanical product, sport machinery, fine chemicals, carbonfibercomposites material, householdelectricalapplianceandaffiliatedcomponents (productsmanagement bylicenseexcluded).
TheCompanyisspecializedinmakingthemiddle-toprankbicycles,themainbrandsareEMMELLEandvarious electricalbicycles.
The majority of its products were previously exported,however,thesales volume sharplydeclinedin recentyears
because of the antidumping litigation. Hence, the Company commences on the debt reorganization and the
reorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,
makes greater efforts to develop and research the new products, and creates a range of electrical bicycles to
occupy the domestic market. Up to 31 December 2014, shares issued by the Company counted as 551,347,947 sharesaccumulated.
ThefinancialstatementhasbeendeliberatedandapprovedontheBoarddated1April2015
Nil
IV.Compilation BasisofFinancialStatement
1.Compilationbasis
The Company proceed on continue operating as a premise, according to the actual occurred transactions and events, basedonAccounting StandardforEnterprise—Basic Rules(Ministry ofFinance Order No.33,Ministry of FinanceOrderNo.76Revised),41specificaccountingrulesissuedandrevisedon15February2006andlater,the ApplicationGuideofAccountingStandardforEnterprise,theAccountingStandardExplanationandotherrelevant regulations(together as “Accounting Standards for Business Enterprises”) as well as the Information Disclosure Rules of the Company who Publicly Issues SecuritiesNo.15—General Rules of Financial Report (2015 Revised) issuedbyCSRCtopreparefinancialstatements.
Accounting records of the Company is based on accrual basis in line with relevant regulations of Accounting Standards for Enterprise. Except for some financial instruments, the financial statement is calculated based on historicalcost.Asforthenon-currentassetsreadyforsold,amountafterdeductedestimatedcostbyfairvalueand the original book value qualify with condition of hold ready for sold, calculated based on the lower one. If impairmentoccurredforassets,accrualrelevantimpairmentprovisioninlinewithrelevantregulations.
2.Goingconcern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guocheng 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 Guocheng 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 Companysince 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
ZhongFaPoZiNo.30-10ruledthatthereorganizationplanofCBCwascompletedandbankruptcyproceduresof CBCcloseddown.
通 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 netassets shouldbe no less than 2 billionYuan, the netassets in the same year for implementing the major reorganization should be no less than 200 million Yuan. TheCompanydoesn’thavetherecombinationpartyatthemoment.
V.MainaccountingpolicyandAccountingEstimate
Tipsforspecificaccountingpolicyandestimate:
Accountingpolicyandestimatearestrictlyinlinewithrelevantregulationsandlaws.
1.Declarationoncompliancewithaccountingstandards
ThefinancialstatementpreparedbytheCompanyarecompliancewiththerequirementofaccountingrules,reflect a true and completed financial status of the Company dated 31 December 2014 and operation results and cash flows for the year of 2014. Furthermore, the financial statement, in all major aspects, conform to the Information Disclosure Rules of the Company who Publicly Issues SecuritiesNo.15—General Rules of Financial Report issuedbyCSRC,revisedin2014,andrelevantdisclosurerequirementanditsnotes.
2.Accountingperiod
AccountingperiodoftheCompanyconsistofannualandmid-term,mid-termreferstothereportingperiodshorter thanoneannualaccountingyear.ThecompanyadoptsGregoriancalendarasaccountingperiod,namelyformeach 1Januaryto31December.
3.Businesscycles
Normalbusinesscycle is theperiodfrom purchasingassetsusedfor processbythe Companyto thecashandcash equivalent achieved. TheCompany’s business cycle was 12 months, and it is the determining criterion for asses liquidityandliabilityliquidity.
4.Recordingcurrency
Renminbiistheoperationlocationandmaineconomyenvironment’scurrencyfortheCompanyandsubsidiaries inChina,Renminbiisthebook-keepingcurrencyoftheCompanyandsubsidiaries.Renminbiisusedfor
recordinginthefinancialstatementunderthenameoftheCompany.
5.AccountingTreatmentMethodforBusinessCombinations
企
Business combination is the transaction or events that two or two above independent enterprises combined as a reporting entity. Business combination including enterprise combined under the same control and business combinedunderdifferentcontrol.
(1)Thebusinesscombinationunderthesamecontrol
参 Enterprise combination under the same control is the enterprise who take part in the combination are have the sameultimatecontrollerorunderthesamecontroller,thecontrolisnottemporary.Thecombiningpartyistheone, on combination day, obtained controlling rights from other participant enterprise. Combination day is the date whencombiningpartyobtainedcontrollingrightsfromthecombinedparty.
合 The assets and liability acquired by combining party are measured by book value of the combined party on combination date. Balance of netassets’s book value acquired by combining party and combine consideration paid (or total book value of the shares issued), shall adjusted capital reserve (share premium); if the capital reserves(sharepremium)isnotenoughfordeducted,adjustedforretainedearnings.
合 Vary directly expenses occurred for enterprise combination, the combining party shall reckoned into current gains/losseswhileoccurring.
（ (2) Combinenot under thesame control
Abusinesscombinationnotinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthe combiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination. For a business combination not involving entities under common control, the party that, on the acquisition date, obtains control of another entity participating in the combination is the acquirer, while that other entity participating in the combination is the acquiree. Acquisition date refers to the date on which the acquirer effectivelyobtainscontroloftheacquiree.
对 For business combinations not under common control, the combination cost is the assets paid, liabilities incurred or assumed and the equity securities issued by the acquirer, at fair value at the acquisition date, in exchange for thecontrolpowerover theacquiree.Thedirectcost,of thebusinesscombinationincludingtheexpensesfor audit, legal service, valuation and other administrative expenses, is recorded into the profit or loss in the current period. Transaction expenses of the issued equity securities or liability securities for the consideration are recorded into the amount of initial measurement of the equity securities or liability securities. The relevant contingent consideration is recorded into the combination costs at its fair value at the acquisition date, and the goodwill is adjusted if the new or additional evidences of adjustment to contingent considerations emerged within 12 months from the acquisition date. The cost of combination and identifiable net assets obtained by the acquirer in a business combination is measured at fair value at the acquisition date. If the cost of combination exceeds the fair
value of theacquirer’s share in the identifiable net assets, the difference is recognized as good will; if the cost of combination is lower than the fair value of theacquirer’s share in the identifiable net assets, the acquirer shall firstly review the measurement of the fair value of the identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs. after that, if the combination costs are still lower thanthefairvalueoftheidentifiablenetassetsobtained,theacquirershallrecognizethedifferenceastheprofitor lossinthecurrentperiod.
购 In relation to the deductible temporary difference acquired from the acquiree, which was not recognized as deferredtax assetsduetonon-fulfillmentoftherecognition criteria atthedateofthe acquisition,if neworfurther information that is obtained within 12 months after the acquisition date indicates that related conditions at the acquisition date already existed, and that the implementation of the economic benefits brought by the deductible temporary difference of the acquiree can be expected, the relevant deferred tax assets shall be recognized and goodwill shall be deducted. When the amount of goodwill is less than the deferred tax assets that shall be recognized, the difference shall be recognized in the profit or loss of the period. Except for the above circumstances, deferred tax assets in relation to business combination are recognized in the profit or loss of the period.
F For a business combination notinvolving enterprises under common control and achieved in stages, the company shall determine whether the business combination shall be regarded as “a bundle of transactions” in accordance with thestandardsin relationtojudgmentofabundleoftransactions in“Noticeissuedbythe MinistryofFinance on Interpretation 5 on Accounting standards for Business Enterprises”(CK(2012)No.19) and rule No. 51 of “No. 33 Accounting standards for Business Enterprises– Consolidated Financial Statement” (Refer to note IV 5(2)). When the business combination is regarded as “a bundle of transactions”, the accounting treatment for the business combination shall be in accordance with the previous paragraphs and note IV 4, 13 “Long term equity investment”; when the business combination is not regarded as “a bundle of transactions”, the accounting treatment for the business combination in thecompany’s and the consolidated financial statements shall be as follows:
IInthecompany’sfinancialstatements,theinitialcostoftheinvestmentshallbethesumofthecarryingamountof its previously-held equity interest in the acquiree prior to the acquisition date and the amount of additional investment made to the acquiree at the acquisition date. other comprehensive income involved in the previously-held equity interest of the acquiree prior to the acquisition date shall be treated on the same basis as if they were disposedof by the acquiree directly, namely be transferred to current investment income other than the relevant part of the movement arising from re-measuring net liabilities or netassets under defined benefit scheme bytheacquireewhichshallbecalculatedunderequitymethod.
I In the consolidated financial statements, the previously-held equity interest of the acquiree is re-measured accordingto thefairvalue attheacquisitiondate;thedifferencebetweenthefair valueandthecarryingamountis recognized as investment income for the current period; other comprehensive income involved in the previously-held equity interest of the acquiree prior to the acquisition date shall be treated on the same basis as if they were disposedof by the acquiree directly, namely be transferred to current investment income other than the relevant part of the movement arising from re-measuring net liabilities or netassets under defined benefit scheme bytheacquireewhichshallbecalculatedunderequitymethod.
6.Preparationmethodforconsolidatedfinancialstatement
（ 1)Recognitionprincipleofconsolidatedscope
T The scope of consolidation of consolidated financial statements is ascertained on the basis of effective control. Control is the right to govern an investee so as to obtain variable return through participating in theinvestee’s relevant activities and the ability to affect such return by use of the aforesaid right over the investee. The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries. SubsidiariesrefertoentitiesregulatedbytheCompany.
O Once certain elements involved in the above definition of control change due to changes of relevant facts or circumstances,theCompanywillmakeseparateassessment.
2 2)Preparationofconsolidatedfinancialstatements
Subsidiaries are consolidated from the date on which the company obtains their net assets and actualcontrol over their operating decisions, and are deconsolidated from the date that such control ceases. For subsidiaries being disposed,theoperatingresultsandcashflowspriortothedateofdisposalareincludedintheconsolidatedincome statement and consolidated cash flow statement; for subsidiaries disposedduring the period, the opening balances of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination not under common control, their operating results and cash flows subsequent to the acquisition date are included in the consolidated income statement and consolidated cash flow statement, and the opening balances and comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination under common control, their operating results and cash flows from the date of commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures oftheconsolidatedbalancesheetwouldberestated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the company. For subsidiaries acquired from a businesscombinationnotundercommoncontrol,thefinancialstatementsofthesubsidiariesareadjustedbasedon thefairvalueoftheidentifiablenetassetsattheacquisitiondate.
公 All significant inter-group balances, transactions and unrealized profits are eliminated in the consolidated financialstatements.
子 The portion of asubsidiary’s equity and the portion of asubsidiary’s net profits and losses for the period not attributable to company are recognized as minority interests and profits and losses attributable to minority interests. Minority interest is presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to minority shareholders is presented separately in the consolidated income statementunderthenetprofitlineitem.Whentheamountoflossforthecurrentperiodattributabletotheminority shareholders of a subsidiary exceeds the minorityshareholders’ portion of the opening balance ofshareholders’ equityofthesubsidiary,theexcessisallocatedagainsttheminorityinterests.
当 When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair value of theremaining equity interestis re-measuredonthe datewhenthe controlceased.Thedifferencebetween the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity interest, less the net assets attributable to the company since the acquisition date, is recognized as the investment income from the loss of control. Other comprehensive income relating to original equity investment in subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the acquiree directly when the control is lost, namely be transferred to current investment income other than the relevant part of the movement arising from re-measuring net liabilities or netassets under defined benefit scheme by the original subsidiary.. Subsequentmeasurement ofthe remaining equity interests shall be in accordance with relevant accounting standards such as “Accounting Standards for business Enterprises 2– Long-term Equity Investments” or “Accounting Standards for business Enterprises 22– Financial Instruments Recognition and Measurement”, which are detailed in Note IV 13 “Long-term equity investments” or Note IV 9 “Financial instruments”.
当 The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal transactions met one or more of the following situations, the transactions shall normally be accounted for as a bundle of transactions: (i) The transactions are entered into after considering the mutual consequences of each individual transaction; (ii) The transactions need to be considered as a whole in order to achieve a deal in commercial sense; (iii) The occurrence of an individual transaction depends on the occurrence of one or more individualtransactions in the series; (iv) The resultof an individual transactionis noteconomical, butit would be economical after taking into account of other transactions in the series. When the transactions are not regarded as a bundle oftransactions, the individualtransactions shallbe accounted as“disposalof a portion of an interestin a subsidiarywhichdoesnotleadtolossofcontrol”(detailedinNoteIV 13(2)(iv))and“disposalofaportionofan interest in a subsidiary which lead to loss of control” (detailed in previous paragraph). When the transactions are regarded as abundle of transactions, thetransactions shallbeaccounted asa single disposaltransaction;however, the difference between the consideration received from disposal and the share of net assets disposed in each individual transactions before loss of control shallbe recognized as other comprehensive income, and reclassified asprofitorlossarisingfromthelossofcontrolwhencontrolislost.
7.Jointarrangementclassificationandaccountingtreatmentforjointoperations
A joint arrangement refers to an arrangement of two or more parties have joint control. In accordance with theCompany’s rights and obligation ns under a joint arrangement, the Company classifies joint arrangements into: joint ventures and joint operations. Joint operations refer to a joint arrangement during which the Company is entitled to relevant assets and obligations of this arrangement. Joint ventures refer to a joint arrangement during whichtheCompanyonlyisentitledtonetassetsofthisarrangement.
The Company treats investments in joint ventures by using the equity method of accounting in accordance with accounting policies as set out in Note IV.13.(2)② “long-term equity investment by using equity method of accounting”.
The Company shall, as a joint venture, recognize the assets heldand obligations assumed solely by the Company, and recognize assets held and obligations assumed jointly by the Company in appropriation to the share of the Company; recognize revenue fromdisposalof theshareof jointoperations ofthe Company; recognizefees solely occurredbyCompanyandrecognizefeesfromjointoperationsinappropriationtotheshareoftheCompany. WhentheCompany,asajointventure,investsorsells assetstoorpurchaseassets(theassets dosenotconstitutea business, the same below) from joint operations, the Company shall only recognize the part of profit or lost from this transaction attributable to other parties of joint operations beforethese assets are sold to the third party.If the occurrence of these assets meet the impairment loss of asset as set our in “Accounting Standard for Business Enterprises No.8–Asset Impairment”,the Companyshall recognize the fullamount of this loss in relation to the
Company invests in or sells assets to joint operations; the Company recognize the loss according to theCompany’sshareofcommitmentinrelationtotheCompanypurchaseassetsfromjointoperations.
8.Determiningstandardsforcashandcashequivalent
Cash and cash equivalent including stock cash, savings available for paid at any time and the cash held by the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as known amountandinvestmentwithminorvariationinrisks.
9.Foreigncurrencybusinessandconversion
(1)Conversionforforeigncurrencytransaction
本 Foreign currency transactions are, on initial recognition, translated to the functional currency using the exchange rates prevailing at the dates of the transactions, except when the Company carries on a business of currency exchangeorinvolvesincurrencyexchangetransactions,atwhichtheactualexchangerateswouldbeused. (2)Foreigncurrencytranslationsforforeign-currencymonetaryitemsandforeign-currencynon-monetaryitems At the balance sheet date, monetary items denominated in foreign currency are translated into the functional currency using the spot rate of the balance sheet date. Exchange differences arising from these translations are recognized in profit or loss for the current period, except for (i) those attributable to foreign currency borrowings thathave beentaken outspecificallyfortheacquisition,constructionorproductionofqualifyingassets,whichare capitalised as part of the cost of those assets; (ii)exchange difference of hedge instruments used as effective hedgingfornetinvestmentofoverseasoperations(this differenceisincludedinothercomprehensiveincomeuntil such net investment is disposed of, and is recognized as profit or loss for the current period upon such disposal) ; and (iii) exchange difference arising from changes in carrying amount of available for sale foreign-currency monetaryitemsotherthanchangesinamortizedcost,whichisrecognizedinothercomprehensiveincome. In case that preparation of consolidated financial statement involves overseas operation, and if there is foreign currency monetary items that indeed constitute net investment in overseas operation, the exchange difference arising from movement of exchange rate shall be included in other comprehensive income, and transferred to currentprofitorlossforthecurrentperiodwhentheoverseasoperationisdisposedof.
Non-monetary items denominated in foreign currency that are measured in terms of historical cost are translated into the functional currency at the balance sheet date using the spot rate at the date of the transactions. Non-monetary items denominated in foreign currency that are measured at fair value are translated into the functional currency using the spot rate on the date when fair value is determined and the resulting exchange differences will be recognized as fair value change (including exchange difference) in profit or loss or in other comprehensiveincomeascapitalreserveinthecurrentyear.
(3)Translationofforeigncurrencyfinancialstatement
In case that preparation of consolidated financial statement involves overseas operation, and if there is foreign currency monetary items that indeed constitute net investment in overseas operation, the exchange difference arisingfrommovementofexchangerateshallberecognizedinothercomprehensiveincomeas“foreignstatement translation difference”, and transferred to current profit or loss for the current period when the overseas operation isdisposedof.
The following displays the methods for translating financial statements involving foreign operations into the statements in RMB:Theassetandliability items inthe balancesheetsfor overseas operations aretranslated atthe spot exchange rates on the balance sheet date. Among theshareholders’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates of the transaction dates. Opening balance of undistributed profits is equal to the closing balance of undistributed profits after translation in last year; closing balance of undistributed profit is computed according to the items in profit distributionaftertranslation.Theexchangedifferencearisingfromtranslationofassets,liabilitiesandequityitems are recognized in other comprehensive income and is shown separately undershareholders’equity in the balance sheet, such exchange difference will be reclassified to profit or loss in current year when the foreign operation is disposedaccordingtotheproportionofdisposal.
The cashflows ofoverseas operations aretranslated atthespotexchange ratesonthe datesofthe cashflows.The effectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.
The opening balance and the prioryear’s figures are presented according to the translated amounts of the prior year.
On disposal of the entireowners’equity in a foreign operation of the Company, or upon a loss of control over a foreign operation due to disposal of certain equity investment or other reasons, the Company transfers the exchange differences arising on translationof financialstatements of this foreign operationattributable toowners’ equity of parent company presented underowners’ equity in the balance sheet, to profit or loss in the period in whichthedisposaltookplace.
In caseofpartialdisposalof equityinvestmentorother reasonthatresultin reduction inshareholdingin aforeign operation without losing control over it, the proportionate share of exchange differences arising from the translation of financial statements will attributable to minority interests and will not recognized in profit or loss. For partial disposals of equity interests in foreign operations which are associates or joint ventures, the proportionate share of the exchange differences arising from the translation of financial statements of foreign operationsisreclassifiedtoprofitorloss.
10.Financialinstrument
FinancialassetorfinancialliabilitywillberecognizedwhentheGroupbecameoneofthepartiesunderafinancial instrument contract. Financial assets and financial liabilities are initially recognized at fair value. For financial assets andfinancialliabilities atfair value through profitor loss, relevanttransaction costs are directly recognized in profit or loss for the period. For financial assets and financial liabilities classified as other categories, relevant transactioncostsareincludedintheamountinitiallyrecognized.
1)Determinationoffairvaluesforfinancialassetsandfinancialliabilities
The fair value refers to the price that will be received when selling an asset or the price to be paid to transfer a liability in an orderly transaction between market participants on the date of measurement. Financial instruments exist in an active market. Fair value is determined based on the quoted price in such market. An active market referstowherepricingiseasilyandregularlyobtainedfromexchanges,brokers, industrialorganizationsandprice fixing service organizations, representing the actual price of a market transaction that takes place in a fair deal. While financial instruments do not exist in an active market, the fair value is determined using valuation techniques. Valuation technologies include reference to be familiar with situation and prices reached in recent market transactions entered into by both willing parties, reference to present fair values of similar other financial instruments,cashflowdiscountingmethodandoptionpricingmodels.
2)Classification,recognitionandmeasurementoffinancialassets
Conventionally traded financial assets shall be recognized and derecognized at the trading date. Financial assets shallbeclassified into financialassets atfair value throughprofitandloss, held-to-maturity investment, loansand accountsreceivableandavailable-for-salefinancialassetsforinitialrecognition.
①Financialassetsatfairvaluethroughprofitorloss
They include financialassets held for trading andfinancialassets designated as atfair value through profitor loss forthecurrentperiod.
Financial assets may be classified as financial assets held for trading if one of the following conditions is met:A. thefinancialassetsisacquiredorincurredprincipallyforthepurposeofsellingitinthenearterm;B.thefinancial assets is part of a portfolio of identified financial instruments that are managed together and for which there is objective evidence of a recent pattern of short-term profit-taking; or C. the financial assets is a derivative, excluding the derivatives designated as effective hedging instruments, the derivatives classified as financial guarantee contract, and the derivatives linked to an equity instrument investment which has no quoted price in an activemarketnorareliablymeasuredfairvalueandarerequiredtobesettledthroughthatequityinstrument. Afinancial asset may be designated as at fair value through profit or loss upon initial recognition only when one
of the following conditions is satisfied:A. Such designation eliminates or significantly reduces a measurement or recognition inconsistency thatwould otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or B. The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with theGroup’s documented risk management or investment strategy, and information about the groupingisreportedtokeymanagementpersonnelonthatbasis.
A financial asset at fair value through profit or loss is subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial asset are recognizedinprofitorlossinthecurrentperiod.
②②Held-to-maturityinvestment
是 Thenon-derivativefinancialassetswithmaturitydate,fixreturnamountoramountabletodetermined,andthe Companyheldwithspecificintentionandability.
持 Held-to-maturityinvestmentadoptseffectiveinterestmethodandcarryoutsubsequentmeasureonamortizedcost, theincomesandlossesarisingfromderecognition,impairmentoramortizationshallreckonedintocurrent gains/losses/
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income or expense over each period based on the effective interest of a financial asset or a financial liability (including a group of financial assets or financial liabilities). The effective interest is the rate that discounts future cash flows from the financial asset or financial liability over its expected life or (where appropriate)ashorterperiodtothecarryingamountofthefinancialassetorfinancialliability.
In calculating the effective interest rate, the Group will estimate the future cash flows (excluding future credit losses) by taking into account all contract terms relating to the financial assets or financial liabilities whilst considering various fees, transaction costs and discounts or premiums which are part of the effective interest rate paidorreceivedbetweenthepartiestothefinancialassetsorfinancialliabilitiescontracts.
③③Loanandaccountreceivable
是 Referstothenon-derivativefinancialassetsforwhichthereisnoquotedpriceintheactivemarketandofwhich therepoamountisfixedordeterminable.Thefinancialassetsclassifyasloansandaccountreceivablesincluding notereceivable,accountreceivable,interestreceivable,dividendreceivableandotheraccountreceivablesetc.贷 Loansandaccountreceivablessubsequentlystatedatamortizedcostusingtheeffectiveinterestmethod;thegains orlossesarisingfromderecognition,impairmentincurredoramortizationshallreckonedintocurrentgains/losses.
④④Financialassetsavailableforsale
包 Includingthenon-derivativefinancialassetsinitialrecognitionthatisappointedasavailableforsale,andexcept forthefinancialassetsmeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/lossesasfinancial assets,loansandreceivablesandheld-to-maturityinvestment.
The closing cost of available-for-sale debt instrument investment is determined based on its amortized cost, namely the initial recognition amount less the repaid principal plus or less the accumulated amortization amount as amortized against the difference between the initial recognition amount and amount as of the maturity date at effective interest method, and less the occurred impairment loss. The closing cost of available-for-sale equity instrumentinvestmentreferstotheacquisitioncost.
Available-for-salefinancialassetsaresubsequentlymeasuredatfairvalue.Thegainorlossonchangeinfairvalue are recognized as other comprehensive income, except for impairmentloss and exchange differences arising from foreign monetaryfinancialassetsandamortizedcostwhichare accountedfor throughprofitorloss forthecurrent period. The financial assets will be transferred out of the financial assets on derecognition and accounted for throughprofitorlossforthecurrentperiod.However,equityinvestmentthatisnotquotedinanactivemarketand the fair valueof whichcannotbemeasuredreliably andderivative financialassetsrelated tothe equityinstrument whichmustbesettledbydeliveryofsuchequityinstrumentaresubsequentlymeasuredatcost.
Interests received from available-for-sale financial assets held and the cash dividends declared bythe investee are recognizedasinvestmentincome.
3)Impairmentoffinancialassets
Inadditiontofinancialassetsatfairvaluethroughprofitorlossforthecurrentperiod,theGroupreviewsthebook value of other financial assets at each balance sheet date and provide for impairment where there is objective evidencethatfinancialassetsareimpaired.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assess the asset individually for impairment or include the asset in a group of financial assets with similar credit risk characteristics and collectively assess them for impairment. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether the financial asset is individually significant or not, the financial asset is included in a groupoffinancialassetswithsimilarcreditriskcharacteristicsandcollectivelyassessedforimpairment.Financial assets for which an impairment loss is individually recognized are not included in the collective assessment for impairment.
①Impairmentofheld-to-maturityinvestments,loansandreceivables
The carrying amount of financial assets measured as costs or amortized costs are subsequently reduced to the present value discounted from its projected future cash flow. The reduced amount is recognized as impairment loss andrecordedas profit or loss for the period. After recognition of the impairment loss from financialassets, if thereisobjectiveevidenceshowingrecoveryinvalueofsuchfinancialassetsimpairedandwhichisrelatedtoany event occurring after such recognition, the impairment loss originally recognized shall be reversed to the extent that the carrying value of the financial assets upon reversal will not exceed the amortized cost as at the reversal dateassumingthereisnoprovisionforimpairment.
②Impairmentofavailable-for-salefinancialassets
In the event thatdecline in fair value ofthe available-for-sale equity instrumentis regarded as“severe decline” or “non-temporarydecline”onthebasisofcomprehensive relatedfactors,itindicatesthatthereisimpairmentlossof the available-for-sale equity instrument. In particular, “severe decline” refers to fair value is lower than50% of the cost price and last for over one year. “Non-temporary decline” refers to fair value is lower than80% of the costpriceandlastforoverthreeyears.
When the available-for-sale financial assets impair, the accumulated loss originally included in the other comprehensive income arising from the decrease in fair value was transferred out from the capital reserve and included in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is the balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts, currentfairvalueandtheimpairmentlossoriginallyincludedintheprofitorloss.
Afterrecognitionoftheimpairmentloss,ifthereisobjectiveevidenceshowingrecoveryinvalueofsuchfinancial assets impaired and which is related to any event occurring after such recognition in subsequent periods, the impairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-sale equity instrument will be recognized as other comprehensive income, and the impairment loss reversal of the available-for-saledebtinstrumentwillbeincludedintheprofitorlossfortheperiod.
When an equity investment thatis not quoted in an active market and the fair value of which cannotbe measured reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled bydeliveryofthatequityinstrument,thenitwillnotbereversed.
4)Recognitionandmeasurementoftransfersoffinancialasset
Financial asset that satisfied any of the following criteria shall be derecognized:① the contract right to recover the cashflows ofthe financialassethasterminated;②thefinancialasset,along with substantially alltherisk and returnarisingfromtheownershipofthefinancialasset,hasbeentransferredtothetransferee;and③thefinancial asset has been transferred to the transferee, and the transferor has given up the control on such financial asset, though it does not assign maintain substantially all the risk and return arising from the ownership of the financial asset.
When the entity does noteither assign or maintain substantially all the risk and return arising from the ownership of the financial asset and does not give up the control on such financial asset, to the extent of its continuous involvement in the financial asset, the entity recognizes it as a related financial asset and recognizes the relevant liability accordingly. The extent of the continuous involvement is the extent to which the entity exposes to changesinthevalueofsuchfinancialassets.
On derecognition ofa financialasset, thedifference betweenthe following amounts is recognizedin profitor loss forthecurrentperiod:thecarryingamountandthesumoftheconsiderationreceivedandanyaccumulatedgainor lossthathadbeenrecognizeddirectlyinequity.
If a part of the financial assets qualifies for derecognition, the carrying amount of the financial asset is allocated between the part that continues to be recognized and the part that qualifies for derecognition, based on the fair values oftherespective parts.Thedifferencebetweenthefollowingamounts is recognizedinprofitorloss forthe period: the sum of the consideration received and the carrying amount of the part that qualifies for derecognition andtheaforementionedcarryingamount.
For financial assets that are sold or transferred with recourse or endorsement, the Company need to determine whethertheriskandrewardsofownershipofthefinancialassethavebeensubstantiallytransferred.Iftheriskand rewards of ownership of the financial asset have been substantially transferred, the financial assets shall be derecognized. If the risk and rewards of ownership of the financial asset have been retained, the financial assets shall not be derecognized. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financialasset, the Companyshall assess whether thecontrolover the financialassetis retained, andthefinancialassetsshallbeaccountingforaccordingtotheaboveparagraphs.
（ 5)Categoryandmeasurementoffinancialliability
金 Financial liability divide into financial liability and other financial liability which are measured by fair value and with its variation reckoned into current gains/losses, while initially recognized. The financial liability initially recognized shall be measured at their fair values. As for the financial liability measured by fair value and with its variation reckoned into currentgains/losses, relevant transaction expenses shall reckoned into currentgains/losses directly; and for the other financial liability, relevant transaction expenses shall be reckoned as initial recognizationamount.
①Financialliabilitymeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses
Financial liability held for trading and financial liability designated as at fair value through profit and loss meet
thesameconditiontoclassifyfinancialassetsasfinancialassetsheldfortradingandfinancialassetsdesignatedas atfairvaluethroughprofitandloss.
Subsequent measurement of liability at fair value through profit or loss is based on fair value. The gain or loss arising from the change in fair value and the dividend and interest expenses related to the financial liability are includedintothecurrentprofitorloss.
②Otherfinancialliabilities
Other financial liabilities which have no quoted price in an active market, or are linked to equity instrument without a reliably measured fair value and are required to be settled through that equity instrument are subsequently measured based on cost. Other financial liabilities are subsequently measured based on amortized cost using the effective interest rate method. The gain or loss arising from discontinuing recognition or amortizationisincludedincurrentprofitorloss.
③Financialguaranteecontractsandloancommitment
Financial guarantee contracts other than those designated as financial liabilities atfair value through profit or loss orloancommitmentsthatarenotdesignatedatfairvalue throughprofitorlossandgrantedataratebelowmarket rates are initially recognized at fair value, and shall be subsequently measured at the higher of the following: the amount determined in accordance with CAS 13 “Contingencies” and the amount initially recognized less cumulativeamortizationrecognizedinaccordancewiththeprinciplessetoutinCASNo.14”Revenue”.
6)DerecognitionofFinancialLiabilities
The Group derecognizes a financialliability (or part of it) only when the underlying presentobligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.
When the Group derecognizes a financialliability or a partofit, itrecognizes the differencebetween the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)inprofitorloss.
7)Derivativesandembeddedderivatives
Derivativefinancialinstruments initiallyrecognizeatfair valueatthecontractdate,andsubsequentlymeasuredat theirfairvalue.Exceptfordesignatedashedgeinstrumentandhigheffectivehedginginstruments,thegainorloss arising from changes in fair value shall be recognized into related period profit or loss on the basis of accounting standards of hedging accounting based on hedge characteristics, and fair value change of other derivative instrumentsisrecordedtocurrentprofitorloss.
For hybrid instrument with embedded derivatives, where the hybrid instrument is not designated as a financial asset or financial liability at FVTPL, and the economic characteristics and risks of the embedded derivatives are not closely related to that of the host contract and the conditions of which are the same as that of the embedded derivatives and a separate instrument meet the definition of a derivative, the embedded derivatives are separated from the hybrid instrument. If the Group is unable to measure the embedded derivative separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a financial asset or financialliabilityatFVTPL.
8)Offsettingfinancialassetsandfinancialliabilities
Where the Group has current enforceable legal rights to offset the recognized financial assets and financial liabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliability simultaneously, the amount after offsetting the financial assets and the financial liabilities is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separatelyinthebalancesheetandshallnotbeoffset.
9)Equityinstruments
AnequityinstrumentisacontractthatevidencesaresidualinterestintheassetsoftheGroupafterdeductingallof its liabilities. The Company issues (including refinancing), repurchases, sells or cancels equity instruments as treatment for change of equity. The Company does not recognize change of fair value of equity instrument. Transactionfeesrelatedtoequitytransactionsaredeductedfromequity.
权 All types of distributions (excluding share dividends) made by the Group to holders of equity instruments are charged toshareholders’ equity. The Group does not recognize any changes in the fair value of equity instruments.
11.AccountReceivable
(1) Account Receivable Withdrawal method on single significant amount and with bad debt provision accruedforsingleitem
|||
|-|-|
|DeterminebasisoramountstandardsforSingleSignificantAmount|TheaccountreceivableoverRMB5million|
|Withdrawalmethodonsinglesignificantamountandwithbaddebtprovisionaccruedforsingleitem|Impairmenttestingforthereceivablesindependentlywithsinglesignificantamount,ifnoimpairmentbeingfoundinfinancialassets,testingintheassetsportfoliowithsimilarrisk.Ifimpairmentlossesbeingrecognized,thannottestinginthereceivablecombinationwithsimilarrisk.|

(2)Receivableswithbaddebtprovisionaccrualbycreditportfolio
|||
|-|-|
|Combination|Baddebtprovisionaccrual|
|Agegroup|Aginganalysis|

Adoptageanalysismethodforbaddebtprovisionwithdrawalincombination:
√Applicable□Notapplicable
||||
|-|-|-|
|Age|Accruedratioforaccountreceivable|Accruedratioforotheraccountreceivable|
|withinoneyear (1yearincluded)|0.30%|0.30%|
|1－2years|0.30%|0.30%|
|2－3years|0.30%|0.30%|
|Over3years|100.00%|100.00%|
|3－4years|100.00%|100.00%|
|4－5years|100.00%|100.00%|
|Over5years|100.00%|100.00%|

 Incombination,accrualbaddebtprovisionwithpercentageofreceivables:
□Applicable√Notapplicable
Incombination,accrualbaddebtprovisionwithothermethod:
□Applicable√Notapplicable
(3)Accountreceivablewithminorsingleamountbutwithwithdrawalbaddebtprovisionforsingleitem:
|||
|-|-|
|Reasonsofwithdrawalbaddebtprovisionforsingleitem|Clearlyevidenceshowsthattheaccounthardtorecover|
|Withdrawalmethodforbaddebtprovision|Recognized impairment lossand accrued the baddebt provisionaccording to the balance between future cash flow on accountreceivableanditsbookvalue|

12.Inventory
(1)Classificationofinventory
TheinventoryoftheCompanyreferstosuchsevenclassificationsastherawmaterials,productinprocess,goods onhand,wrappage,lowvalueconsumables,materialsforconsignedprocessingandgoodssold.
(2)Valuingofthedeliveredandreceivedinventory
2各 Purchasing and storage for the inventory are priced at actual costs, inventory cost including purchasing cost, processing cost and other expenses belongs to the inventory costs, and the expenses qualify capitalization of borrowingcostscondition.Determinedtheamountforinventorybyperpetualinventorysystem.
3) Basis for determining net realisable value of inventories and provision methods for decline in value of
inventories
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion, the estimated costs necessary to make the sale and relevant taxes. Net realisable value is determined onthebasisofclearevidenceobtained,andtakesintoconsiderationthepurposesofholdinginventoriesandeffect ofpostbalancesheetevents.
At the balance sheet date, inventories are measured at the lower of cost and net realisable value. If the net realisable value is below the cost of inventories, a provision for decline in value of inventories is made. Provision for decline in value of inventories is generally made based on the difference between the cost of single item of inventory and its net realisable value. As for inventories with huge number and relatively low unit price, such provision is made under categories of inventories; as for inventories related to a series of products produced and soldinthesameregion,withsameorsimilarultimateusageorpurposeandforwhichitisdifficulttobemeasured separatelyfromotheritems,suchprovisioncanbemadeonaconsolidatedbasis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realisable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss fortheperiod.
（ 4)Inventorysystem
存 Perpetualinventorysystem
5)Amortizationmethodforthelow-valueconsumablesandwrappage
低 TheCompanyadoptsone-offamortizationmethodtoamortizethelow-valueconsumables.
TheCompanyadoptsone-offamortizationmethodtoamortizethewrappageatthetimeofreceipt.
13.Classifiedasassetsheldforsale
If anon-currentassetcanbepromptly soldatits existingstatus onlyaccordingto thepracticeterms in connection with disposal of this kind of assets, and the Company has already made resolution on disposal of the non-current asset and entered into irrevocable transfer agreement with the transferee, and this transfer will be completed within one year, then the non-current asset would be calculated as non-current asset held for sale which would be not applicable to depreciation or amortisation since the date of classification as asset held for sale, and would be measured at the lower of its carrying value less disposal cost and fair value less disposal cost. Non-current asset heldforsaleconsists ofsingle item assetanddisposalgroup.Ifadisposalgroupis agroupofassets asdefinedby No.8of BusinessAccountingStandards-Assets Impairment, andgoodwillarising frombusiness combinationshall be allocated to the group of assets under this accounting principle, or the disposalgroup constitutes one operation ofthegroupofassets,thenthedisposalgroupincludesthegoodwillarisingfrombusinesscombination.
Forsinglenon-currentassetandassetindisposalgroupclassifiedasassetsheldforsale,theyshallbepresentedin balance sheet separately as current assets. For liabilities in disposal group relating to the transferred assets classifiedasassetsheldforsale,theyshallbepresentedinbalancesheetseparatelyascurrentliabilities.
If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current asset held for sale, the Company will cease such recognition and measure the asset atthe lower of(1)the carrying value of the asset or disposal group prior to being classified as held for sale, based on the amount adjusted with the depreciation, amortisation or impairment which should have been recognized assuming it had not been classifiedasheldforsale;(2)therecoverableamountonthedatewhentheCompanydecidestoceasedisposal. 14.Long-termequityinvestments
Long-term equity investments under this section refer to long-term equity investments in which the Company has control, joint control or significant influence over the investee. Long-term equity investment without control or joint control or significant influence of the Group is accounted for as available-for-sale financial assets or financial assets measured at fair value with any change in fair value charged to profit or loss. Details on its accountingpolicypleaserefertoNote10.“Financialinstruments”.
Joint control is theCompany’s contractually agreed sharing of control over an arrangement, which relevant activities of such arrangement must be decided by unanimously agreement from parties who share control. Significantinfluence is the powerofthe Companyto participate in the financialand operating policy decisionsof aninvestee,buttofailtocontrolorjointcontroltheformulationofsuchpoliciestogetherwithotherparties. 1)Determinationofinvestmentcost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the initial investment cost of the long-term equity investment shall be the absorbingparty’s share of the carrying amount of theowner’s equity under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference between the initial cost of the long-term equity investment and thecashpaid,non-cash assetstransferredaswellasthebookvalue ofthedebtsbornebytheabsorbingpartyshall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial investment cost of the long-term equity investment shall be theabsorbingparty’s share of the carrying amount of theowner’s equity under the consolidated financial statements of the ultimate controlling party on the date of combination. With the totalfacevalue ofthe sharesissuedassharecapital, thedifferencebetweentheinitialcostofthe long-term equity investmentandtotalfacevalueofthesharesissuedshallbeusedtooffsetagainstthecapitalreserve. If thecapital reserve is insufficient to offset, the retained earnings shall be adjusted. For business combination resulted in an enterprise under common control by acquiring equity of the absorbing party under common control through a stage-up approach with several transactions, these transactions will be judged whether they shall be treat as
“transactions in a basket”. If they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial investment cost of the long-term equity investment shall be theabsorbingparty’s share of the carrying amount of theowner’s equity under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference betweenthe initial costofthe long-term equity investment andthe aggregate of the carrying amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for further shareacquisitiononthedate ofcombination shalloffsetagainstthe capitalreserve.If thecapitalreserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held equity investment accounted for using equity method on the date of combination or recognizedforavailable-for-salefinancialassetswillnotbeaccountedfor.
For a long-term equity investment acquired through a business combination involving enterprises not under commoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbethecostofcombinationon the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer, liabilities incurred or borne and equity securities issued. For business combination resulted in an enterprise not undercommoncontrolbyacquiringequityoftheacquireundercommoncontrolthroughastage-upapproachwith several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial investment cost of the long-term equity investment accounted for using cost method shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investment cost. For previously held equity accounted for using equity method, relevant other comprehensive income will not be accounted for. For previously held equity investment classified as available-for-sale financial asset, the difference between its fair value and carrying amount, as well as the accumulated movement in fair value previously included in the other comprehensive incomeshallbetransferredtoprofitorlossforthecurrentperiod.
Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and valuation and consultation fees, and other related administration expenses are charged to profit or loss in the currentperiodatthetimesuchexpensesincurred.
The long-term equity investment acquired through means other than a business combination shall be initially measured at its cost. Such cost is depended upon the acquired means of long-term equity investments, which is recognized based on the purchase cost actually paid by the Company in cash, the fair value of equity securities issued by the Group, the agreed value of investment contract or agreement, the fair value or original carrying amounts of the non-monetary asset exchange transaction which the asset will be transferred out of the Company, and the fair value of long-term equity investment itself. The costs, taxes and other necessary expenses that are directlyattributabletotheacquisitionofthelong-termequityinvestmentsarealsoincludedintheinvestmentcost. For additional equity investment made in order to obtain significant influence or common control over investee
withoutresultedincontrol,therelevantcostforlong-termequityinvestmentshallbetheaggregateoffairvalueof previously held equity investment and additional investment cost determined according to “Accounting StandardforBusinessEnterprisesNo.22–RecognitionandmeasurementofFinancialInstruments”.
2)Subsequentmeasurementandmethodforprofitorlossrecognition
Long-termequityinvestmentswithjointcontrol(excludingthoseconstitutejointventures)orsignificantinfluence on the investee are accounted for using equity method. In addition, long-term equity investments with control ontheinvesteeareaccountedforusingcostmethodandrecordintheCompany’sfinancialstatements.
①Long-termequityinvestmentsaccountedforusingthecostmethod
Under the cost method, a long-term equity investment is measured at its initial investment cost. The cost for long-term equity investment is adjusted in the event of additional investment or investment recovery. Except receiving the actualconsideration paidfor the investmentor thedeclared butnotyet distributed cash dividends or profits which is included in the consideration, investment gains for the period is recognized as the cash dividends orprofitsdeclaredbytheinvestee.
②Long-termequityinvestmentsaccountedforusingtheequitymethod
Under the equity method, where the initial investment cost of a long-term equity investment exceeds theinvestor’s interest in the fair value of theinvestee’s identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost. Where the initial investment costis less than theinvestor’s interest in the fair value of theinvestee’s identifiable net assets at the acquisition date, the difference shall be charged to profitorlossforthecurrentperiod,andthecostofthelongtermequityinvestmentshallbeadjustedaccordingly. Under the equity method, investment gain and other comprehensive income shall be recognized based on theGroup’s share of the net profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment shallbe reducedbased ontheGroup’s shareof profitorcash dividend distributed by the investee. In respect of the other movement of net profit or loss, other comprehensive income and profit distribution of investee, the carrying value of long-term equity investment shall be adjusted and included in the capital reserves. The Group shallrecognise its share of theinvestee’s netprofits orlosses basedon the fair values of theinvestee’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustments thereto. In the event of inconformity between the accounting policies and accounting periods of the investee and the Company, the financial statements of the investee shall be adjusted in conformity with the accounting policies and accounting periods of the Company. Investment gain and other comprehensive income shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint ventures inwhich theassets disposedof orsoldarenotclassifiedas operation,the shareofunrealisedgain orloss arising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investment
gain shall be recognized accordingly. However, any unrealised loss arising from inter-group transactions between the Group and an investee is not eliminated to the extent that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified as operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment by the investor without obtaining control, the initial investment cost of additional long-term equity investment shall be the fair value of disposed operation. The difference between initial investment cost and the carrying value of disposed operation will be fully included in profit or loss for the current period. In the event that the Group sold an asset classified as operation to its associates or joint ventures, the difference between the carrying value of consideration received and operation shall be fully included in profit or loss for the current period. In the event that the Company acquired an asset which formed an operation from its associates or joint ventures, relevant transaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or lossrelatedtothetransactionshallbeaccountedfor.
TheGroup’s share of net losses of the investee shall be recognized to the extent that the carrying amount of the long-term equity investmenttogether with anylong-term interests thatin substance form partof theinvestor’s net investment in the investee are reduced to zero. If the Group has to assume additional obligations, the estimated obligationassumedshallbeprovidedforandchargedtotheprofitorlossasinvestmentlossfortheperiod.Where the investee is making profits in subsequent periods, the Group shall resume recognising its share of profits after settingoffagainsttheshareofunrecognizedlosses.
③Acquisitionofminorityinterest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of long-term equity investment which was compared to fair value of identifiable net assets recognized which are measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained earnings.
④Disposaloflong-termequityinvestments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity investments relative to the netassets of the subsidiary is charged to theowners’ equity. If disposalof a portion of the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be accountedforinaccordancewith therelevantaccountingpoliciesasdescribedin Note6.(2)“PreparationMethod oftheConsolidatedFinancialStatements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the investmentandtheactualconsiderationpaidisrecognizedthroughprofitorlossinthecurrentperiod.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest after disposal also accounted for using equity method, other comprehensive income previously underowners’ equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis at the time of disposal. Theowners’ equity recognized for the movement of otherowners’ equity (excluding net profit or loss, other comprehensive income and profit distributionofinvestee)shallbetransferredtoprofitorlossforthecurrentperiodonproratabasis.
IntheeventoflossofcontroloverinvesteeduetopartialdisposalofequityinvestmentbytheGroup,inpreparing separatefinancialstatements,theremainingequityinterestwhichcanapplycommoncontrolorimposesignificant influence over the investee after disposal shall be accounted for using equity method. Such remaining equity interest shall be treated as accounting for using equity method since it is obtained and adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose significant influence over the investee after disposal, it shall be accounted for using the recognition and measurement standard of financial instruments. The difference between its fair value and carrying amount as at the date of losing control shall be included in profit or loss for the current period. In respect of other comprehensive income recognized using equity method or the recognition and measurement standard of financial instruments before the Group obtained control over the investee, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by investee at the time when the control over investee is lost. Movement of otherowners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investee accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at the time when the control over investee is lost. Of which, for the remaining equity interest after disposal accounted for using equity method, other comprehensive income and otherowners’ equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for using the recognition and measurement standard of financial instruments, other comprehensive income and otherowners’equityshallbefullytransferred.
In the event of loss of common control or significant influence over investee due to partial disposal of equity investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition and measurement standard of financial instruments. The difference between its fair value and carrying amount as at the date of losing common control or significant influence shall be included in profit or loss for the current period. In respect of other comprehensive income recognized under previous equity investment using equity method, it shall be accounted for in accordance with the same accounting treatment for directdisposalof relevant asset or liability by investee at the time when equity method was ceased to be used. Movement of otherowners’ equity(excludingnetprofitorloss,othercomprehensiveincomeandprofitdistributionundernetassetofinvestee accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at thetimewhenequitymethodwasceasedtobeused.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction shallbeaccountedfor asasingletransaction ofdisposingequityinvestmentofsubsidiaryandlossofcontrol.The difference between the disposal consideration for each transaction and the carrying amount of the corresponding long-term equity investment of disposed equity interest before loss of control shall initially recognized as other comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current perioduponlossofcontrol.
15.Investmentproperty
Measurementmode
Measuredbycostmethod
Depreciationoramortizationmethod
Investment property refers to real estate held to earn rentals or for capital appreciation, or both. Including the leased land use right, land use right held for transfer upon appreciation, leased buildings, etc. in addition, in connectionwith thevacantbuildingsheldbytheCompanyforoperatinglease,ifthe boardofdirectors(orsimilar organ) makes written resolution that the buildings are to be used for operating lease and the holding purpose will notchangeinashorttime,thesebuildingswillbestatedasinvestmentproperties.
Investment property is initially measured at cost. Subsequent expenditures related to an investment property shall be included in cost of investment property only when the economic benefits associated with the asset will likely flow to the Group and its cost can be measured reliably.All other expenditures on investment property shall be includedinprofitorlossforthecurrentperiodwhenincurred.
The Group adopts cost method for subsequent measurement of investment property, which is depreciated using thesamepolicyasthatforbuildingsandlanduserights.
Impairment test method and impairment provision method in relation to investment property is detailed in note IV.20“Longtermassetsimpairment”
In the event that an investment property is converted to an owner-occupied property, such property shall become fixed assets or intangible assets since the date of its conversion. In the event that an owner-occupied property is converted to real estate held to earn rentals or for capital appreciation, such fixed assets or intangible assets shall becomeaninvestmentpropertysincethedateofitsconversion.Investmentpropertyismeasuredatcostduringits conversion.Upontheconversion,thepropertyshallbestatedatthecarryingamountpriortotheconversion. If an investment property is disposed of or if it withdraws permanently from use and no economic benefit will be obtained from the disposal, the recognition of it as an investment property shall be terminated. When an investment property is sold, transferred, retired or damaged, the amount of proceeds on disposal of the property
netofthecarryingamountandrelatedtaxandsurchargesisrecognizedinprofitorlossforthecurrentperiod. 16.Fixedassets
(1)Confirmationconditions
Fixedassetsrefertothetangibleassetsforproductionofproducts,provisionoflabor,leaseoroperation,andwithaservicelifein excessof1financialyear.FixedassetsarerecognizedwhilerelevanteconomicinterestsflowintotheCompanyandthecostiscanbe reliablymeasured.Fixedassetsshallbeinitiallymeasuredaccordingtothecostandtakethepredicteddiscardexpensesinto consideration.
(2)Depreciationmethods
||||||
|-|-|-|-|-|
|Categories|Method|Yearsofdepreciation|Scrapvaluerate|Yearlydepreciationrate|
|Housingbuildings|Straight-linedepreciation|20|10.00%|4.5%|
|Machinesandequipment|Straight-linedepreciation|10|10.00%|9%|
|Officeequipment|Straight-linedepreciation|5|10.00%|18%|
|Electronicequipment|Straight-linedepreciation|5|10.00%|18%|
|Transportationequipment|Straight-linedepreciation|5|10.00%|18%|
|Otherequipment|Straight-linedepreciation|5|10.00%|18%|

(3)Recognizationbasis,valuationanddepreciationmethodforfinancialleaseassets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of asset ownership to the lessee and titles to the assets may or may not eventually be transferred. For fixed assets acquired under finance leases, the basis for provision of leased assets depreciation is the same as that of self-owned fixed assets. When it can be reasonably determined that the ownership of a leased asset will be transferredattheendoftheleaseterm, itis depreciatedover theperiodofexpecteduse;otherwise,theleaseasset isdepreciatedovertheshorterperiodoftheleasetermandtheperiodofexpecteduse.
17.ProjectunderConstruction
C Costs of construction in progress are recognized by actual construction expenses, including vary engineering spendings in construction period, the capitalized borrowing cost and other related costs before the construction reaches condition for planned use. When construction in progress reaches condition for planned use, it shall be carriedforwardtofixedassets.
Impairmenttestingandprovisionforimpairmentfoundmorein“22.Long-termassetsimpairment”
18.Borrowingcosts
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs
incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings. For borrowing costs that are directly attributable to the acquisition, construction or productionofaqualifyingasset,whenexpendituresfortheassetandborrowingcostsarebeingincurred,activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced, such borrowing costs shall be capitalized as part of the cost of that asset; andcapitalizationshalldiscontinuewhenthequalifyingassetisreadyforitsintendeduseorsale.Otherborrowing costsshallberecognizedasexpenseintheperiodinwhichtheyareincurred.
Where funds are borrowed for a specific purpose, the amount of interest to be capitalized shall be the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used into banks or any investment income on the temporary investment of those funds. Where funds are borrowed for general purpose, the Group shall determine the amount of interest to be capitalized on suchborrowings by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specific-purpose borrowings. The capitalizationrateshallbetheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings. During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign currencyshall be capitalized.Exchange differences related to general-purpose borrowings denominated in foreign currencyshallbeincludedinprofitorlossforthecurrentperiod.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial periodoftimeforacquisition,constructionorproductiontogetreadyfortheirintendeduseorsale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of morethan3months,untiltheacquisition,constructionorproductionofthequalifyingassetisresumed.
19.Biologicalassets
Nil
20.Oil-and-gasassets
Nil
21.Intangibleassets
(1)Valuationmethod,servicelifeandimpairmenttest
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be recognizedascostoftheintangibleassetonlyifitisprobablethateconomicbenefitsassociatedwiththeassetwill flow to the Companyand the costof the assetcan be measured reliably.Other expenditures on anitem assetshall bechargedtoprofitorlosswhenincurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants), related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For buildings and structures purchased, the purchase consideration shall be allocated among the land use right and the buildings on a reasonable basis. In case there is difficulty in making a reasonable allocation, the considerationshallberecognizedinfullasfixedassets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any accumulated impairment loss provision and amortized using the straight-line method over its useful life when the assetisavailableforuse.
Intangibleassetswithindefinitelifearenotamortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization method applied at least at each financial year-end. A change in the useful life or amortization method used shall be accounted for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Group shallreviewtheusefullifeoftheassetineachaccountingperiod.Ifthereisevidenceindicatingthattheusefullife ofthatintangibleassetisfinite,theCompanyshallestimatetheusefullifeofthatassetandapply
theaccountingpoliciesaccordingly.
(2)Internalaccountingpoliciesrelatingtoresearchanddevelopmentexpenditures
ResearchanddevelopmentexpenditureoftheGroupwasdividedintoexpensesincurredduringtheresearchphase andexpensesincurredduringthedevelopmentphase.
Expensesincurredduringtheresearchphasearerecognizedasprofitorlossinthecurrentperiod.
Expensesincurredduringthedevelopmentphasethatsatisfythefollowingconditionsarerecognized asintangible assets,whilethosethatdonotsatisfythefollowingconditionsareaccountedforintheprofitorlossforthecurrent period:
①itistechnicallyfeasiblethattheintangibleassetcanbeusedorsolduponcompletion;
②thereisintentiontocompletetheintangibleassetforuseorsale;
③theintangibleassetcanproduceeconomicbenefits,includingthereisevidencethattheproductsproducedusing theintangibleassethasamarketortheintangibleassetitselfhasamarket;iftheintangibleassetisforinternaluse, thereisevidencethatthereexistsusagefortheintangibleasset;
④there is sufficient support in terms of technology, financial resources and other resources in order to complete thedevelopmentoftheintangibleasset,andthereiscapabilitytouseorselltheintangibleasset;
⑤theexpensesattributabletothedevelopmentphaseoftheintangibleassetcanbemeasuredreliably.
If the expenses incurred during the research phase and the development phase cannot be distinguished separately, alldevelopmentexpensesincurredareaccountedforintheprofitorlossforthecurrentperiod.
22.Impairmentoflong-termasset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of non-currentnon-financialassetssuchasfixedassets,constructioninprogress,intangibleassetswithafiniteuseful life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled entities andassociates.If thereis anyevidenceindicating thatan assetmaybeimpaired,recoverable amountshall be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets beyondworkingconditionswillbetestedforimpairmentannually,regardless ofwhetherthereisanyindicationof impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairment provision will be made according to the difference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cashflows expectedto bederived from the asset.Anasset’sfair value is the price ina saleagreementin anarm’slengthtransaction.Ifthereisnosaleagreementbuttheassetistradedinanactivemarket,fairvalueshallbe determinedbasedonthebidprice.If thereisneithersaleagreementnoractivemarketforanasset,fair valueshall be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset, including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over the course of continued use and final disposal is determined as the amount discounted using an appropriately selecteddiscountrate.Provisions forassets impairmentshallbemadeandrecognizedfortheindividualasset. If it is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets capableofgeneratingcashflowsindependently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements shall be allocated to the asset groups or group of assets benefiting from synergy of business combination. If therecoverableamountis lessthanthe carryingamount, theGroupshallrecognize animpairment loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the assetgrouporsetofassetgroups,prorataonthebasisofthecarryingamountofeachasset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of therestorablevalue.
23.Long-termDeferredExpenses
Long term unamortized expenses represent the occurred expenses which should be shared by the current period andfutureperiodswith termmorethanoneyear.Andshallbeamortizedbystraight-linemethodduringtheperiod forestimatedbenefit.
24.Employeecompensation
(1)Accountingtreatmentforshort-termcompensation
Short-term compensation including salary, bonus, allowance and subsidy, welfare expenses, medical insurance, birth insurance premium, industrial injury insurance premium, housing fund, labor union expenditure, personnel education fund and non-monetary welfare. During the accounting period when staff providing service to the Company, the acual short-term compensation occurred shall recognized as liabilities and reckoned into current gains/lossesorrelevantassetscosts.Thenon-monetarywelfareismeasuredbyfairvalue.
(2)Accountingtreatmentforpost-employmentbenefit
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 intorelevantassetscostsorcurrentgains/losseswhileoccurred.
(3)Accountingforretirementbenefits
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 recognise 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 labour relationship plans and employee redundant proposals; and the Company recognise cost and expenses related to payment of compensation for dismissal and restructuring, whichever is earlier.However,if thecompensation for termination ofemploymentis notexpectedto befully paid within12monthsfromthereportingperiod,itshallbeaccountedforotherlong-termstaffremuneration.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for termination of employment. The salaries or wages and the social contributions to be paid for the employees who retire before schedule from the date on which the employees stop rendering services to the scheduled retirement date, shall be recognized (as compensation for termination of employment) in the current profit or loss
bytheGroupiftherecognitionprinciplesforprovisionsaresatisfied.
(4)Accountingforotherlong-termemployeebenefits
For other long-term employee benefits provided by the Company to its employees, if satisfy with the established withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for underdefinedbenefitscheme.
25.Accruedliabilities
Obligations pertinent to the contingencies which satisfy the following conditions are recognized as accrued liabilities: (1) The obligation is a current obligation borne by the Company; (2) it is likely that an outflow of economic benefits will be resulted from the performance of the obligation; and (3) the amount of the obligation canbereliablymeasured.
At the balance sheet date, accrued liabilities shall be measured at the best estimate of the necessary expenses required for the performance of existing obligations, after taking into account relevant risks, uncertainties, time valueofmoneyandotherfactorspertinenttothecontingencies.
Ifallorsomeexpensesincurredforsettlementofaccruedliabilitiesareexpectedtobebornebythethirdparty,the compensation amount shall, on a recoverable basis, be recognized as asset separately, and compensation amount recognizedshallnotbemorethanthecarryingamountofaccruedliabilities.
1)Contactinloss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the inflow of expected economic benefits. When a contract in loss is identified and the obligations there under are qualified by the aforesaid recognition criterion for contingent liability, the difference of estimated loss under contract over the recognized impairment loss (if any) of the subject matter of the contract is recognized as contingentliability.
2)Restructuringobligations
For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuring are recognized as contingent liabilities, provided that the aforesaid recognition criterion for contingent liability is met. For restructuring obligations arising from disposal of part business, the Company will recognise the obligations relating to restructuring only when it undertakes to dispose part business (namely enteringintofinalizeddisposalagreement).
26.Share-basedpayment
1)Accountingforshare-basedpayment
Share based payment refers to the transactions involving grant of equity instrument or assume liabilities as
determined based on equity instrument for the purpose of acquiring services from employees or other parties. Sharebasedpaymentisdividedintotheequitysettledsharebasedpaymentandcashsettledsharebasedpayment.①equitysettledsharebasedpayment
Equitysettledsharebasedpaymentforexchangeofserviceprovidedbyemployeesismeasuredatthefairvalueof the equity instrument granted to the employees as at the grant date. Subject to completion of services during the vest period or satisfaction with the required performance conditions for exercising right, the amount of the fair value is included in relevant cost or expense under straight line method based on the best estimate on the number of exercisable equity instruments during the vest period. If it becomes exercisable immediately following the relevantgrant,itisincludedinrelevantcostorexpenseonthegrantdateandaccordinglyincreasecapitalreserve. On each balance sheet date during the vest period, the Company makes the best estimate based on subsequent information such as the latest available information about change of number of exercisable employees, thus to amend the number of equity instruments which are expected to be exercisable. Impact of the above estimate is includedinrelevantcostorexpenseforthecurrentperiod,withcorrespondingadjustmentincapitalreserve. Equity settled share based payment for exchange of service provided by others is measured at fair value of the service as of the acquisition date provided that suchfair value can be measured reliably.If such fair value can not be measured reliably, while fair value of the equity instrument can be measured reliably, the payment shall be measuredatthe fair value of equity instrumentas ofthe acquisitiondate, andincludedin relevantcostor expensewithcorrespondingincreaseinshareholders’equity.
②cashsettledsharebasedpayment
Asforcashsettledsharebasedpayment, itismeasuredatthefairvalue oftheliabilities assumedbytheCompany as determined based on shares or other equity instruments. If it becomes exercisable immediately following the relevant grant, it is included in relevant cost or expense on the grant date and accordingly increase liabilities. If it issubjecttocompletionofservicesduringthevestperiodorsatisfactionwiththerequiredperformanceconditions for exercising right, on each balance sheet date during the vest period, the Company makes the best estimate on the exercisable rights, and accounts for the service obtained in the current period in relevant cost or expense with correspondingincreaseofliabilitiesbasedonthefairvalueoftheliabilitiesassumedbytheCompany.
The Company re-measures the fair value of liabilities on each balance sheet date and settlement date prior to settlementofrelevantliabilities,withchangesthereofincludedinprofitorlossforthecurrentperiod.
2)Relevantaccountingforamendingorterminatingsharebasedpaymentplan
In case that the Company amends share based payment plan which leads to increase of fair value of the granted equity instruments, the Company will correspondingly increase recognition for services obtained according to the increase of fair value of equity instrument. Increase of fair value of equity instrument refers to the difference of
fair values of equity instruments asatthe revision date beforeandafter such revision.In casethat theamendment results in decrease in total fair value of share based payment or adoption of other means which are not beneficial to employees, the Company will continue account for the services obtained as if such amendment had never occurred,unlesstheCompanycancelpartorallthegrantedequityinstruments.
During the vest period, if the granted equity instruments are cancelled, the Company will accelerate exercise of rights attachingto thegranted equityinstruments whicharecancelled,andtheremainingamountwhichshouldbe recognized during the vest period is included in profit or loss for the current period promptly, meanwhile to recognisecapitalreserve. If employeesorotherpartieswhocanchoosetosatisfy thenonexercisable rightsdonot satisfy such conditions during the vest period, the Company will regard them as cancellation of granted equity instruments.
3)AccountingforsharebasedpaymentconcerningtheCompany,itsshareholdersoractualcontrollers
As for share based payment concerning the Company, its shareholders or actual controllers, with either the settlement entity or service-acceptance entity in the Company or not, it is accounted for in our consolidated financialstatementunderthefollowingprovisions:
①for settlement entity making settlement with its own equity instruments, the transaction is accounted for as equitysettledsharebasedpayment,otherwiseitshallbeaccountedforascashsettledsharebasedpayment. If the settlement entity is an investor of the service-acceptance entity, the transaction is recognized as long term equity investment in the service-acceptance entity based on the fair value ofthe equity instruments as atthe grant dateorthefairvalueofassumedliabilities,withrecognitionofcapitalreserve(othercapitalreserve)orliabilities.②If service-acceptance entity is not obliged to settle or grant its own equity instruments to its employees, the share based payment transaction is accounted for as equity settled share based payment. If service-acceptance entity is obliged to settle or the equity instruments granted to its employee are not the own instruments of the entity,thesharebasedpaymenttransactionisaccountedforascashsettledsharebasedpayment.
For intra-company share basedpaymenttransactions, if the service-acceptance entity andsettlement entity arenot the same enterprise, the share based payment transaction shall be recognized and measured in the respective financialstatementofthetwoentitiesundertheaforesaidprinciples.
27.Otherfinancialinstrumentsincludingseniorsharesandperpetualbonds
The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject to satisfactionofallthebelowconditions:
①thefinancialinstrumentexcludesdeliveryofcashorotherfinancialassetstoothers,orexchangeforcontractual
obligationsonfinancialassetsorfinancialliabilitieswithothersunderpotentialnegativeconditions;
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 financialinstruments arenon-derivatives; if thefinancialinstruments are derivatives, theCompanycan onlysettle the financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash or otherfinancialassets.
Other than the financial instruments which can be classified as equity instruments under the above conditions, otherfinancialinstrumentsissuedbytheCompanyshallbeclassifiedasfinancialliabilities.
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 recornised 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 respectiveproportiontothetotalissuanceprice.
2)Accountingforperpetualbondsandseniorshares
Forperpetualbondsandseniorsharesclassifiedintofinancialliabilities,theirrelevantinterest,dividends,gainsor 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 capitalisation (please refer to note 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.TheCompanyaccountsforallocationofholdersofequityinstrumentsasprofitdistribution.
TheCompanydosenotrecogniseschangeoffairvalueofequityinstruments.
28.Revenue
（ 1)Incomefromgoodssales
Income from goods sales are realized when the following conditions are met: the major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retain the continued management right generally related to ownership, nor exercise effective control over the sold products; the relevant economic benefitsareprobabletoflowintotheCompany;therelevantincomeandcostscanbemeasuredreliably.
2)Provisionoflaborservices
When the outcome of a transaction involving the rendering of services can be reliably estimated, it shall, on the balance sheet date, recognize the revenue from the rendering of services employing the percentage-of-completion method.
The outcome of a transaction concerning the rendering of services can be reliably estimated, which shall concurrently satisfy:① The relevant amount of revenue can be reliably measured;② it is probable that the economic benefits will flow into the enterprise;③ the completion schedule of the transaction can be reliablyascertained;and④transactioncostsincurredandtobeincurredcanbereliablymeasured.
When the outcome of a transaction involving the rendering of services cannot be reliably estimated, it shall recognize the revenue from the rendering of services based on the cost of rendering services already incurred and expected to be compensated, andthe costof rendering services incurred shallbe recognized as an expense for the current period. If the cost of rendering services is expected not to be compensated, it shall be recognized as an expense.
When a contract or agreement signed by the Group includes sales of goods and rendering of services, if sales of goods and rendering of services can be differentiated and separately measured, they will be recognized respectively.Ifsalesofgoodsandrenderingofservicescannotbedifferentiatedorcannotbeseparatelymeasured, theywillberecognizedassalesofgoodsinfull.
(3)Incomefromchargeforuse
Inlinewithrelevantcontractoragreement,recognizedincomeonaccrualbasis
(4)Interestincome
Recognizedbasedonthetimesandrealinterestratesforthemoneyusedbyothers
29.GovernmentGrants
(1)Determinationbasisandaccountingforgovernmentgrantsrelatedtoassets
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration, excluding capital considerations from the government as an owner of the Group. Government grantsareclassifiedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be measured at fair value. If fair value is not reliably determinable, the item shall be measured at a nominal amount andrecognizedimmediatelyinprofitorlossforthecurrentperiod.
Governmentgrants are generally recognizedwhenreceived andmeasured atthe amountactuallyreceived, butare measured at the amount likely to be received when there is conclusive evidence at the end of the accounting period that the Group will meet related requirements of such grants and will be able to receive the grants. The government grants so measured should also satisfy the following conditions: (1) the amount of the grants be confirmed with competent authorities in written form or reasonably deduced from related requirements under financialfundmanagementmeasuresofficiallyreleasedwithoutmaterial
uncertainties; (2) the grants be given based on financial support projects and fund management policies officially published and voluntarily disclosed by local financial authorities in accordance with the requirements under disclosure of government information, where such policies should be open to any company satisfying conditions requiredand notspecifically for certain companies;(3)the dateofpaymentbe specifiedin relateddocuments and the payment thereof be covered by corresponding budget to ensure such grants will be paid on time as specified; and (4)other relevant conditions which shall be met based on the specific situations of the Company and the subjectmatter.
Agovernment grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or lossovertheusefullifeoftheasset.
For the repayment of a government grant already recognized, if there is any related deferred income, the repaymentshallbeoffsetagainstthe carryingamountof the deferredincome, andanyexcess shallbe recognized in profit or loss for the current period; if there is no related deferred income, the repayment shall be recognized immediatelyinprofitorlossforthecurrentperiod.
(2)Determinationbasisandaccountingforgovernmentgrantsrelatedtoincome
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration, excluding capital considerations from the government as an owner of the Group. Government grantsareclassifiedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be measured at fair value. If fair value is not reliably determinable, the item shall be measured at a nominal amount andrecognizedimmediatelyinprofitorlossforthecurrentperiod.
Governmentgrants are generally recognizedwhenreceived andmeasured atthe amountactuallyreceived, butare measured at the amount likely to be received when there is conclusive evidence at the end of the accounting period that the Group will meet related requirements of such grants and will be able to receive the grants. The government grants so measured should also satisfy the following conditions: (1) the amount of the grants be confirmed with competent authorities in written form or reasonably deduced from related requirements under
financialfundmanagementmeasuresofficiallyreleasedwithoutmaterial
uncertainties; (2) the grants be given based on financial support projects and fund management policies officially published and voluntarily disclosed by local financial authorities in accordance with the requirements under disclosure of government information, where such policies should be open to any company satisfying conditions requiredand notspecifically for certain companies;(3)the dateofpaymentbe specifiedin relateddocuments and the payment thereof be covered by corresponding budget to ensure such grants will be paid on time as specified; and (4)other relevant conditions which shall be met based on the specific situations of the Company and the subjectmatter.
For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, the grant shall be recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are recognized; if the grant is a compensation for related expenses or lossesalreadyincurred,thegrantshallberecognizedimmediatelyinprofitorlossforthecurrentperiod.
For the repayment of a government grant already recognized, if there is any related deferred income, the repaymentshallbeoffsetagainstthe carryingamountof the deferredincome, andanyexcess shallbe recognized in profit or loss for the current period; if there is no related deferred income, the repayment shall be recognized immediatelyinprofitorlossforthecurrentperiod.
30. Deferred tax assets / deferred income taxliabilities、Deferred income tax assets/Deferred income tax liabilities
1)Currentincometax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods shall be measured at the amount expected to be paid (or recovered) according to the requirements of tax laws. Taxable profits, which are the basis for calculating the current income tax expense, are determined after adjusting the accountingprofitsbeforetaxfortheyearinaccordancewithrelevantrequirementsoftaxlaws.
2)Deferredincometaxassetsanddeferredincometaxliabilities
Temporary differences arising from the difference between the carrying amount of an asset or liability and its tax base, and the difference between the tax base and the carrying amount of those items that are not recognized as assets or liabilities but have a tax base that can be determined according to tax laws, shall be recognized as deferredincometaxassetsanddeferredincometaxliabilitiesusingthebalancesheetliabilitymethod.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial recognition of goodwill; and the initial recognition of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the
transaction. In addition, the Group recognises the corresponding deferred income tax liability for taxable temporary differencesassociatedwith investments in subsidiaries,associates andjointventures, exceptwhenboth of the following conditions are satisfied: the Company able to control the timing of the reversal of the temporary difference;anditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the transaction. In addition, the Group recognises the corresponding deferred income tax asset for deductible temporary differences associated with investments in subsidiaries, associates and joint ventures to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised, except when both of the following conditions are satisfied: it is not probable that the temporary difference will reverse in the foreseeable future; and it is not probablethattaxableprofitswillbeavailableinthefuture,againstwhichthetemporarydifferencecanbeutilised. The Company recognises a deferred income tax asset for the carry forward of deductible losses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits will be available against which the deductiblelossesandtaxcreditscanbeutilised.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, according to the requirementsoftaxlaws.
At the balance sheet date, the Company shall review the carrying amount of a deferred income tax asset. If it is probable that sufficient taxable profits will not be available in future periods to allow the benefit of the deferred income tax asset to be utilised, the carrying amount of the deferred income tax asset shall be reduced.Any such reductioninamountshallbereversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable. 3)Incometaxexpense
Incometaxexpensecomprisescurrentincometaxexpenseanddeferredincometaxexpense.
Current income tax expense (current income tax income) and deferred income tax expense (deferred income tax income) are included in profit or loss for the current period, except for: recognized as other comprehensive incomeorcurrentincometaxanddeferredincometaxrelatedtotransactionsoreventsthataredirectlyrecognized in other comprehensive income orowners’equity, which are recognized directly inowners’equity, and deferred incometaxarisingfromabusinesscombination,whichisadjustedagainstthecarryingamountofgoodwill. 4)Presentationofincometax
When the Group hasa legal right to settle on a netbasis and intendseither to settle ona netbasis or to realise the assets and settle the liabilities simultaneously,currenttax assets and currenttax liabilities are offsetand presented onanetbasis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle currenttax assets and liabilities on a netbasis or to realise the assets and liabilities simultaneously,in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presentedonanetbasis.
31.Lease
(1)Accountingforoperatinglease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewardsofassetownershiptothelesseeandtitlestotheassetsmayormaynoteventuallybetransferred.Allother leasesareclassifiedasoperatingleases.
1)OperatingleasebusinesswiththeGrouprecordedaslessee
Lease payment for operating lease is recognized as related asset cost or profits and losses for the current period using the straight-line method over the lease term. The initial direct cost is directly accounted in profit or loss for thecurrentperiod.Contingentrentisrecognizedasprofitorlossforthecurrentperioduponoccurrence.
2)OperatingleasebusinesswiththeGrouprecordedaslessor
Rental income is recognized in profit or loss for the current period using the straight-line method over the lease term. The initialdirectcostwhere theamountis larger is capitalised whenincurred,andaccountedfor asprofitor lossforthecurrentperiodonthesamebasisasrecognitionofrentalincomeovertheentireleaseperiod;theinitial direct cost where the amount is fewer is included in the profit or loss for the period when incurred. Contingent rentalisaccountedforasprofitorlossfortheperiodinwhichitisincurred.
(2)Accountingforfinancinglease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewardsofassetownershiptothelesseeandtitlestotheassetsmayormaynoteventuallybetransferred.Allother leasesareclassifiedasoperatingleases.
1)FinancingleasebusinesswiththeGrouprecordedaslessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference recognized as unrecognized financingexpenses. In addition,initial directcosts attributable toleaseditems incurredduringthe processoflease negotiation and signing of lease agreement shall be included in the value of leased assets. The balance of minimum lease payment after deducting unrecognized financing expenses shall be accounted for long-term liabilityandlong-termliabilityduewithinoneyear.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective interest method during the leasing period. Contingent rent shall beincluded in profit or loss for the currentperiod atthetimeitincurred.
2)FinancingleasebusinesswiththeGrouprecordedaslessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease receivable and initial direct costs at the beginning date of the lease.The unsecured balance shall be recorded.The aggregate of minimum lease receivable, initial direct costs and unsecured balance and the different between their present value shall be recognized as unrealised financing income. The balance of lease receivable after deducting unrecognizedfinancingincomeshallbeaccountedforlong-termdebtandlong-termdebtduewithinoneyear. Unrecognized financing income shall be recognized as financing income for the current period using effective interestmethodduringtheleasingperiod.Contingentrentshallbeincludedinprofitorlossforthecurrentperiod atthetimeitincurred.
32.Otherimportantaccountingpolicyandestimation
1)Discontinuedoperation
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; or③ it only establishesforacquisitionofsubsidiarythroughdisposal.
Accountingfordiscontinuedoperationissetoutinnote13“classifiedasassetsheldforsale”.
33.Majoraccountingpolicyandchanges
(1)Mainaccountingpolicychanges
√Applicable□Notapplicable
||||
|-|-|-|
|Contentandreasons|Approvalprocedures|Note|
|Sevenrulesnewlyissued|IssuedbyMinistryofFinance|CaiKuai[2014]No.6;No.8;No.10;No.11;No.14andNo.16|

At the beginning of 2014, Ministry of Finance issued the followed rules Cai Kuai[2014] No. 6; No.8; No.10; No.11; No.14 and No.16, that is "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurements ", "AccountingStandards forBusiness Enterprises No.30-Presentationof FinancialStatements "(2014 Revised), "Accounting Standards for Business Enterprises No. 9 - Employee Remuneration(2014 Revised)", " Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements "(2014 Revised), "Accounting Standards for Business Enterprises No. 40 - Joint Venture Arrangement", "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments(2014 Revised)" and "Accounting Standards for Business Enterprises No. 41 - Disclosure of Interests in Other Entities", and requires all the enterprises implementing the accounting standards to execute since July 1, 2014. Meanwhile, the Ministry of Finance issued the CaiKuai[2014] No.23 "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments(2014 Revised)"(“Presentation of Financial Instruments” for short), which requires the enterprises implementing the accounting standards to present the financial instruments in the financial reports of 2014andthesubsequentperiodsinaccordancewiththerequirementsoftheaccountingstandards.
本 The Company executed the above mentioned 7 new or revised accounting standards except the Presentation of Financial Instruments since 1 July 2014, and started executing the Presentation of Financial Instruments in preparing the annual financial repot of 2014. The accounting policy changed shows no impart on items and amountofcurrentandpreviousfinancialstatements.
(2)Changesofimportantaccountingestimate
□Applicable√Notapplicable
34.Other
Nil
VI.Taxes
1.Maitaxcategoryandtaxrate
||||
|-|-|-|
|Taxcategory|Taxcalculationevidence|Taxrate|
|Valueaddedtax|Sales income, and income fromprocessing, maintenance, making repairs|17%|

||||
|-|-|-|
||and supplying replacements, and laborservice||
|Salestax|Taxablelaborincome|5%|
|Taxformaintainingandbuildingcities|Amount of value-added tax and sales taxpayable|7%|
|Businessincometax|Taxableincome|25%|
|Educationalsurtax|Amount of value-added tax and sales taxpayable|3%|
|Localeducationalsurtax|Amountofvalue-addedtaxandsalestaxpayable|2%|
|Propertytax|70%oftheoriginalvalueoftheproperty|1.2%|

Disclosereasonsfordifferenttaxpayingbody
|||
|-|-|
|Taxpayingbody|Incometaxrate|

2.Taxpreference
Nil
3.Other
Nil
VII. Notes to Items in Consolidated FinancialStatements
1.Monetaryfund
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Cashonhand|2,894.71|49,992.08|
|Cashinbank|30,160,972.07|26,784,179.51|
|Total|30,163,866.78|26,834,171.59|

 Otherexplanation
Nil
2.Financialassetsmeasuredbyfairvalueandreckonedintocurrentgains/losseswithitsvariation
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
3.Derivativefinancialassets
□Applicable√Notapplicable
4.Notereceivables
(1)Classificationofnotesreceivable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Bankacceptancebill|2,200,000.00||
|Total|2,200,000.00||

(2)Pledgeatperiod-end
InRMB
|||
|-|-|
|Item|Amountpledgeatperiod-end|

(3)Notesendorsementordiscountandundueonbalancesheetdate
InRMB
||||
|-|-|-|
|Item|Amountderecognitionatperiod-end|Amountnotderecognitionatperiod-end|
|Bankacceptancebill|70,550,979.10||
|Total|70,550,979.10||

(4)Notestransfertoaccountreceivabledueforfailureimplementationbydraweratperiod-end
InRMB
|||
|-|-|
|Item|Amounttransfertoaccountreceivableatperiod-end|

 Otherexplanation
Nil
5.Accountsreceivable
(1)Accountsreceivablebycategory:
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Endingbalance|||||Openingbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Ratio|Amount|Accrualratio||Amount|Ratio|Amount|Accrualratio||
|Receivableswithbad|8,101,91|100.00%|1,310,93|16.18%|6,790,982|8,346,6|100.00%|1,286,406|15.41%|7,060,251.2|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|debtprovisionaccrualbycreditportfolio|9.90||7.40||.50|57.41||.13||8|
|Total|8,101,919.90|100.00%|1,310,937.40|16.18%|6,790,982.50|8,346,657.41|100.00%|1,286,406.13|15.41%|7,060,251.28|

 Receivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod:
□Applicable√Notapplicable
Incombination,accountsreceivablewhosebaddebtsprovisionwasaccruedbyageanalysis:
√Applicable□Notapplicable
InRMB
|||||
|-|-|-|-|
|Age|Endingbalance|||
||Accountreceivable|Baddebtprovision|Accrualratio|
|withinoneyear||||
|Subtotalwithinoneyear|6,634,178.97|19,902.54|0.30%|
|1-2years|117,506.98|352.52|0.30%|
|2-3years|59,730.80|179.19|0.30%|
|Over3years|1,290,503.15|1,290,503.15|100.00%|
|Total|8,101,919.90|1,310,937.40||

Explanationoncombinationdetermines:
本 According to the business scale, business nature, andcustomers’ settlement, etc., the account receivable with single significant amountisdeterminedtobeRMB5million.Theaccountreceivablewithsinglesignificantamounthasnodepreciationreserve,and thereserveforbaddebtprovisioniswithdrawnwithageanalysismethod.
ÿ Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforaccountreceivable:
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforaccountreceivable:
(2)Baddebtprovisionaccrualcollectedorswitchback
Baddebtprovisionaccrualwas24,531.27Yuan;theamountcollectedorswitchesbackamountingto0.00Yuan
Importantbaddebtprovisioncollectedorswitchback:
InRMB
||||
|-|-|-|
|Company|Collectedorswitchbackamount|Collectionway|
|Total|0.00|--|

(3)AccountreceivableactualchargeoffinthePeriod
InRMB
|||
|-|-|
|Item|Amountwrittenoff|

Written-offforthemajorreceivable:
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Nature|Amountwrittenoff|Reasonforwrite-off|Verificationprocedures|Arisingfromrelatedtransaction(Y/N)|
|Total|--|0.00|--|--|--|

Explanationforwrite-offofreceivables:
Nil
(4)Top5receivablesatendingbalancebyarrearsparty
Total year-end balance of top five receivables by arrears party amounting to 5,939,426.45 Yuan, takes 73.31 percent of the total account receivable at year-end, bad debt provision accural correspondingly at year-end amountingas1,189,778.82Yuan.
(5)Receivablederecognitionduetotransferoffinancialassets
Nil
(6)Assetsandliabilityresultedbyreceivabletransferandcontinousinvolvement
Nil
Otherexplanation:
Nil
6.Advancepayment
(1)advancepaymentbyage
InRMB
||||||
|-|-|-|-|-|
|Age|Endingbalance||Openingbalance||
||Amount|Ratio|Amount|Ratio|
|withinoneyear|348,277.01|100.00%|3,748.01|2.11%|
|1-2years|||173,888.48|97.89%|
|Total|348,277.01|--|177,636.49|--|

Explanationonreasonsoffailuretosettleonimportantadvancepaymentwithageoveroneyear:
Nil
(2)Top5advancepaymentatendingbalancebyprepaymentobject
Total year-end balance of top five advance payment by prepayment object amounting to 340,275.00 Yuan, takes 97.70percentofthetotaladvancepaymentatyear-end.
Otherexplanation
Nil
7.Interestreceivable
(1)Category
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

(2)Importantoverdueinterest
||||||
|-|-|-|-|-|
|Borrower|Endingbalance|OverduetimeOverduetime|Overduereason|Impairment(Y/N)andjudgmentbasis|

 Otherexplanation:
Nil
8.Dividendreceivables
(1)Dividendreceivables
InRMB
||||
|-|-|-|
|Item(ortheinvestedentity)|Endingbalance|Openingbalance|

(2)majordividendreceivableswithoveroneyearage
InRMB
||||||
|-|-|-|-|-|
|Itemortheinvestedentity)|Endingbalance|Age|Reasons|Impairment(Y/N)andjudgmentbasis|
|Total|0.00|--|--|--|

Otherexplanation:
Nil
9.Otheraccountsreceivable
(1)Otheraccountsreceivablebycategory
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Endingbalance|||||Openingbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Ratio|Amount|Accrualratio||Amount|Ratio|Amount|Accrualratio||
|Otherreceivableswithbaddebtprovisionaccrualbycreditportfolio|961,528.71|100.00%|450,273.90|46.83%|511,254.81|107,821,659.25|100.00%|426,229.56|0.40%|107,395,429.69|
|Total|961,528.71|100.00%|450,273.90|46.83%|511,254.81|107,821,659.25|100.00%|426,229.56|0.40%|107,395,429.69|

 Otherreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod:
□Applicable√Notapplicable
Incombination,otheraccountsreceivablewhosebaddebtsprovisionwasaccruedbyageanalysis
√Applicable□Notapplicable
InRMB
|||||
|-|-|-|-|
|Age|Endingbalance|||
||Otheraccountsreceivable|Baddebtprovision|Accrualratio|
|withinoneyear||||
|Subtotalwithinoneyear|500,793.19|1,502.38|0.30%|
|1-2years|12,000.00|36.00|0.30%|
|Over3years|448,735.52|448,735.52|100.00%|
|Total|961,528.71|450,273.90||

Explanationsoncombinationdetermine:
本Accordingtothebusinessscale,businessnature,andcustomers’settlement,etc.,theotheraccountreceivablewithsinglebigamount isdeterminedtobeRMB5million.Theotheraccountreceivablewithsinglebigamounthasnodepreciationreserve,andthereserve forbaddebtprovisioniswithdrawnwithageanalysismethod.
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforotheraccountreceivable:
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforotheraccountreceivable:
□Applicable√Notapplicable
(2)Baddebtprovisionaccrualcollectedorswitchback
Baddebtprovisionaccrualwas24,044.34Yuan;theamountcollectedorswitchesbackamountingto0.00Yuan
Importantbaddebtprovisioncollectedorswitchback:
InRMB
||||
|-|-|-|
|Company|Amountreversalorcollected|Collectionway|
|Total|0.00|--|

Nil
(3)Otherreceivablesactuallywritten-offduringthereportingperiod
InRMB
|||
|-|-|
|Item|Amountwrittenoff|

Written-offforthemajorotherreceivable:
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Natureofotherreceivables|Amountwrittenoff|Reasonforwrite-off|Verificationprocedures|Arisingfromrelatedtransaction(Y/N)|
|Total|--|0.00|--|--|--|

Explanationforwrite-offofotherreceivables:
Nil
(4)Otherreceivablesbynature
InRMB
||||
|-|-|-|
|Nature|Endingbookbalance|Openingbookbalance|
|Currentmoney|961,528.71|107,821,659.25|
|Total|961,528.71|107,821,659.25|

 (5)Top5otherreceivablesatendingbalancebyarrearsparty
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Nature|Endingbalance|Age|Ratiointotalendingbalanceofotherreceivables|Endingbalanceofbadbetprovision|
|LuweiElectricalEquipmentCo.,|paymentforgoods|300,000.00|Over3years|31.20%|300,000.00|
|After-saleservicedept.FuxinElectricvehicle,Beilin|paymentforgoods|100,000.00|withinoneyear|10.40%|300.00|

|||||||
|-|-|-|-|-|-|
|District,Xi’anCity||||||
|ShenzhenAnjinhengIndustrialCo.,Ltd.|Deposit|90,100.00|withinoneyear|9.37%|270.30|
|Total|--|490,100.00|--||300,570.30|

 (6)Accountreceivablewithgovernmentgrantsinvolved
InRMB
||||||
|-|-|-|-|-|
|Company|Item|Endingbalance|Endingage|Time,amountandbasisofamountcollectionestimated|
|Total|--|0.00|--|--|

Nil
(7)Otheraccountreceivablederecognitionduetofinancialassetstransfer
Nil
(8)Assetsandliabilityresultedbyotheraccountreceivabletransferandcontinuousinvolvement
Nil
Otherexplanation:
Nil
10.Inventory
(1)Inventoryclassification
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||
||Bookbalance|Depreciationreserve|Bookvalue|Bookbalance|Depreciationreserve|Bookvalue|
|Rawmaterials|302,597.03||302,597.03|10,580.00||10,580.00|
|Finishedgoods|5,868,710.50||5,868,710.50|4,534,536.43||4,534,536.43|
|Total|6,171,307.53||6,171,307.53|4,545,116.43||4,545,116.43|

 (2)Inventorydepreciationreserve
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseinthecurrentperiod|Decreaseinthecurrentperiod|Endingbalance|

||||||
|-|-|-|-|-|
||Accrual|Other|Switchbackorwrite-off|Other|
|Total|0.00|0.00|0.00|0.00|

Nil
(3)Explanationoncapitalizationofborrowingcostsatendingbalanceofinventory
Nil
(4)Assetsthatcompletedwithoutsettlementfromconstructioncontract
InRMB
|||
|-|-|
|Item|Amount|

Otherexplanation:
Nil
11.Assetsholdingreadyforsold
InRMB
||||||
|-|-|-|-|-|
|Item|Endingbookvalue|Fairvalue|Expecteddisposalexpenses|Expecteddisposaltime|
|Total|0.00|0.00|0.00|--|

Otherexplanation:
Nil
12.Non-currentassetsduewithinoneyear
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
13.Othercurrentassets
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
14.Financialassetsavailableforsale
(1)Financialassetsavailableforsale
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||
||Bookbalance|Depreciationreserves|Bookvalue|Bookbalance|Depreciationreserves|Bookvalue|
|Total|0.00|0.00||0.00|0.00||

(2)Financialassetsavailableforsalemeasuredbyfairvalueatperiod-end
InRMB
||||||
|-|-|-|-|-|
|Type|Cost/liabilityofequityinstrument/amortizationcostofdebtinstrument|Fairvalue|Amountoffairvaluechangesthataccumulativelyreckonedinothercomprehensivegains|Amountwithimpairmentaccrual|
|Total|0.00|0.00|0.00|0.00|

 (3)Financialassetsavailableforsalemeasuredbycostatperiod-end
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Theinvestedentity|Bookbalance||||Depreciationreserves||||Ratioofshare-holdingininvestedentity|Cashdividend|
||Period-beginning|Increased|Decreased|Period-end|Period-beginning|Increased|Decreased|Period-end|||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|--|0.00|

 (4)ChangesofimpairmentinPeriod
InRMB
||||||||
|-|-|-|-|-|-|-|
|Type|Balanceofimpairmentaccrualatperiod-begin|Accrual|Including:transfer-infromothercomprehensiveincome|Decreased|Including:switchbackduetofairvaluereboundatperiod-end|Balanceofimpairmentaccrualatperiod-end|
|Total|0.00|0.00|0.00|0.00|0.00|0.00|

(5)Fair valueofequityinstrumentavailable forsalesharply declinedorother-than-temporarydeclinedat period-endwithoutdepreciationreservesaccrual
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Investmentcost|Endingfairvalue|Fairvaluedeclinedrelativetocost|Timeofdropspersistently(month)|Amountwithimpairmentaccrual|Reasonsforun-accural|
|Total|0.00|0.00|--|--|0.00|--|

 Otherexplanation
Nil
15.Held-to-maturityinvestment
(1)Held-to-maturityinvestment
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||
||Bookbalance|Depreciationreserves|Bookvalue|Bookbalance|Depreciationreserves|Bookvalue|
|Total|0.00|0.00||0.00|0.00||

(2)Importantheld-to-maturityinvestmentatperiod-end
InRMB
||||||
|-|-|-|-|-|
|Bond|Facevalue|Couponvalue|Actualrate|Maturitydate|
|Total|0.00|--|--|--|

(3)Held-to-maturityinvestmentreclassifyinthePeriod
Nil
Otherexplanation
Nil
16.Long-termaccountreceivable
(1)Long-termaccountreceivable
InRMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||Discountratesection|
||Bookbalance|Baddebtprovision|Bookvalue|Bookbalance|Baddebtprovision|Bookvalue||

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

 (2)Long-termaccountreceivablederecognitionduetotransferoffinancialassets
Nil
(3)Assetsandliabilityresultedbylong-termaccountreceivabletransferandcontinuousinvolvement Nil
Otherexplanation
Nil
17.Long-termequityinvestment
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Theinvestedentity|Openingbalance|+,-||||||||Endingbalance|Endingbalanceofimpairmentprovision|
|||Additionalinvestment|Capitalreduction|Investmentgainsrecognizedunderequity|Othercomprehensiveincomeadjustment|Otherequitychange|Cashdividendorprofitannouncedtoissued|Impairmentaccrual|Other|||
|I.Jointventure||||||||||||
|Subtotal|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|II.Associatedenterprise||||||||||||
|Subtotal|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Total|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

 Otherexplanation
Nil
18.Investmentrealestate
(1)Investmentrealestatemeasuredatcost
□Applicable√Notapplicable
(2)Investmentrealestatemeasuredatfairvalue
□Applicable√Notapplicable
(3)Certificateoftitleun-completed
InRMB
||||
|-|-|-|
|Item|Bookvalue|Reasonsforun-completed|

 Otherexplanation
Nil
19.Fixedassets
(1)Fixedassets
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Housingbuildings|Machinesandequipment|Electronicequipment|Transportationequipment|Other|Total|
|1.Openingbalance|||581,452.63|590,000.00||1,171,452.63|
|2.increasedinthePeriod||194,406.84|56,153.85|441,292.30||691,852.99|
|(1)Purchase||194,406.84|56,153.85|441,292.30||691,852.99|
|3.DecreasedAmount||||515,478.06||515,478.06|
|(1)Disposalorscrap||||515,478.06||515,478.06|
|4.Endingbalance||194,406.84|637,606.48|515,814.24||1,347,827.56|
|1.Openingbalance|||391,916.33|551,711.93||943,628.26|
|2.increasedinthePeriod||1,474.16|24,676.15|52,916.67||79,066.98|
|(1)Accrual||1,474.16|24,676.15|52,916.67||79,066.98|
|3.DecreasedAmount||||448,829.52||448,829.52|
|(1)Disposalorscrap||||448,829.52||448,829.52|
|4.Endingbalance||1,474.16|416,592.48|155,799.08||573,865.72|
|1.Endingbookvalue||192,932.68|221,014.00|360,015.16||773,961.84|
|2.Openingbookvalue|||189,536.30|38,288.07||227,824.37|

 (2)Fixed assts temporary idle
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Originalbookvalue|Accumulateddepreciation|Depreciationreserves|Bookvalue|Note|

(3)Fixed assets leased through operating lease
InRMB
||||||
|-|-|-|-|-|
|Item|Originalbookvalue|Accumulateddepreciation|Depreciationreserves|Bookvalue|

(4)Fixed assets leased through operating lease
InRMB
|||
|-|-|
|Item|Endingbookvalue|

(5)Certificateoftitleun-completed
InRMB
||||
|-|-|-|
|Item|Bookvalue|Reasons|

Otherexplanation
20.Construction inprogress
(1)Construction in progress
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||
||Bookbalance|Depreciationreserves|Bookvalue|Bookbalance|Depreciationreserves|Bookvalue|
|Total|0.00|0.00||0.00|0.00||

(2)Changesinsignificantconstructioninprogress
InRMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Budget|Openingbalance|increasedinthePeriod|Fixedassetstransfer-ininthePeriod|OtherdecreasedinthePeriod|Endingbalance|Proportionofprojectinvestmentinbudget|Progress|Accumulatedamountofinterestcapitalization|including:interestcapitalizedamountoftheyear|Interestcapitalizationrateoftheyear|Sourceoffunds|
|Total|0.00|0.00|0.00|0.00|0.00|0.00|--|--|0.00|0.00|0.00%|--|

 (3)Depreciationreservesaccrual
InRMB
||||
|-|-|-|
|Item|AccuralAmount|Reasons|
|Total|0.00|--|

Otherexplanation
Nil
21.Engineeringmaterials
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
22.Disposaloffixedassets
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredbycost
□Applicable√Notapplicable
(2)Productivebiologicalassetsmeasuredbyfairvalue
□Applicable√Notapplicable
24.Oil-and-gasassets
□Applicable√Notapplicable
25.Intangibleassets
(1)Intangibleassets
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Landuseright|Patent|Non-patenttechnology|Other|Total|
|1.Openingbalance||5,271,000.00|||5,271,000.00|
|4.Endingbalance||5,271,000.00|||5,271,000.00|
|2.increasedinthePeriod||753,000.00|||753,000.00|
|(1)Accural||753,000.00|||753,000.00|
|4.Endingbalance||753,000.00|||753,000.00|
|1.Endingbookvalue||4,518,000.00|||4,518,000.00|

||||
|-|-|-|
|2.Openingbookvalue|5,271,000.00|5,271,000.00|

RatiooftheintangibleassetsfromintenalR&Dinbalanceofintangibleassetsatperiod-end
(2)Landuserightwithoutcertificateoftitlecompleted
InRMB
||||
|-|-|-|
|Item|Bookvalue|Reasons|

Otherexplanation:
Nil
26.Development expense
InRMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|increasedinthePeriod||DecreasedAmount|||Endingbalance|
|||Internaldevelopmentexpenditure|Other|Confirmedasintangibleassets|Includedincurrentprofitsandlosses|Other||
|Total||0.00|0.00|0.00|0.00|0.00||

Otherexplanation
Nil
27.Goodwill
(1)Originalbookvalueofgoodwill
InRMB
||||||||
|-|-|-|-|-|-|-|
|Theinvestedentityoritems|Openingbalance|Increaseduringtheyear||Decreasedduringtheyear||Endingbalance|
|||Arisingfromenterprisecombination|Other|Disposal|Other||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|

 (2)Depreciationreservesofgoodwill
InRMB
||||||||
|-|-|-|-|-|-|-|
|Theinvestedentityoritems|Openingbalance|Increaseduringtheyear||Decreased||Endingbalance|
|||Accrual|Other|Disposal|Other||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|

Processofimpairmenttesting,parameterandrecogniztionmethodforimpairmentlosses
Nil
Otherexplanation
Nil
28.Long-termunamortizedexpenses
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|increasedinthePeriod|AmortizedinthePeriod|Otherdecrease|Endingbalance|
|Total||0.00|0.00|0.00||

Otherexplanation
Nil
29.Deferredincometaxassetsanddeferredincometaxliabilities
(1)Deferredincometaxassetsun-offset
InRMB
||||||
|-|-|-|-|-|
|Item|Endingbalance||Openingbalance||
||Deductibletemporarydifference|Deferredincometaxassets|Deductibletemporarydifference|Deferredincometaxassets|
|Assetdepreciationreserves|47,988.32|11,997.08|||
|Total|47,988.32|11,997.08|0.00||

(2)Deferredincometaxliabilitiesun-offset
InRMB
||||||
|-|-|-|-|-|
|Item|Endingbalance||Openingbalance||
||Taxabletemporarydifferences|Deferredincometaxliabilities|Taxabletemporarydifferences|Deferredincometaxliabilities|
|Total|0.00||0.00||

(3)Deferredincometaxassetsanddeferredincometaxliabilitieslistedafteroff-set
InRMB
||||||
|-|-|-|-|-|
|Item|Trade-offbetweenthedeferredincometaxassetsandliabilities|Endingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set|Trade-offbetweenthedeferredincometaxassetsandliabilitiesatperiod-begin|Openingbalanceofdeferredincometaxassetsorliabilitiesafteroff-set|
|Deferredincometaxassets||11,997.08|||

(4)detailsofunrecognized deferred income tax assets
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Total|0.00|0.00|

 (5)deductiblelossesofun-recognizeddeferredincometaxassetsexpiredonthefollowedyear
InRMB
|||||
|-|-|-|-|
|Year|Endingamount|Openingamount|Note|

Otherexplanation:
Nil
30.Othernon-currentassets
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
31.Short-termloans
(1)Typesofshort-term loans
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Explanationonshort-termloanscategory
Nil
(2)overdueoutstandingshort-termloans
Total0.00Yuanoverdueoutstandingshort-termloansatperiod-end,includingthefollowedsignificantamount:
InRMB
||||||
|-|-|-|-|-|
|Unit|Endingbalance|Lendingrate|Overduetime|Overduerate|
|Total|0.00|--|--|--|

Otherexplanation:
Nil
32.Financialliabilitymeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
33.derivativefinancialliabilities
□Applicable√Notapplicable
34.Notes payable
InRMB
||||
|-|-|-|
|Type|Endingbalance|Openingbalance|

Notesexpiredatyear-endwithoutpaidwas0.00Yuan
35.Accountpayable
(1)Accountpayable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|paymentforgoods|10,278,377.96|9,935,720.73|
|Total|10,278,377.96|9,935,720.73|

 (2)Accountpayablewithoveroneyearbookage
InRMB
||||
|-|-|-|
|Item|Endingbalance|Reasonsofun-paidorcarry-over|
|Total|0.00|--|

Otherexplanation:
Nil
36.Accountreceivedinadvance
(1)Accountreceivedinadvance
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|paymentforgoods|2,595,736.07|3,627,323.31|
|Total|2,595,736.07|3,627,323.31|

(2)Accountreceived inadvancewithoveroneyearbookage
InRMB
||||
|-|-|-|
|Item|Endingbalance|Reasonsofun-paidorcarry-over|
|Total|0.00|--|

(3)Projectsthatsettlewithoutcompletedfromconstructioncontractatperiod-end
InRMB
|||
|-|-|
|Item|Amount|

Otherexplanation:
Nil
37.Wages payable
(1)Wages payable
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|I.Short-termcompensation|1,516,624.17|6,694,919.12|6,444,045.53|1,767,497.76|
|II.Post-employmentwelfare-definedcontributionplans||393,048.90|387,731.94|5,316.96|
|III.Dismisswelfare||17,310.25|17,310.25||
|Total|1,516,624.17|7,105,278.27|6,849,087.72|1,772,814.72|

 (2)Short-termcompensation
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|1.Wages,bonuses,allowancesandsubsidies|1,286,682.00|5,751,226.97|5,511,579.85|1,526,329.12|
|2.Welfareforworkersandstaff||193,838.00|193,838.00||
|3.Socialinsurance||154,056.00|152,762.92|1,293.08|
|Including:Medicalinsurance||134,220.00|132,926.92|1,293.08|
|Workinjuryinsurance||7,416.00|7,416.00||
|Maternity||12,420.00|12,420.00||

||||||
|-|-|-|-|-|
|insurance|||||
|4.Housingaccumulationfund||501,600.06|490,265.62|11,334.44|
|5.Laborunionexpenditureandpersonneleducationexpense|229,942.17|94,198.09|95,599.14|228,541.12|
|Total|1,516,624.17|6,694,919.12|6,444,045.53|1,767,497.76|

 (3)Definedcontributionplans
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|1.Basicendowmentinsurance||372,485.06|367,312.74|5,172.32|
|2.Unemploymentinsurance||20,563.84|20,419.20|144.64|
|Total||393,048.90|387,731.94|5,316.96|

 Otherexplanation:
TheCompanyparticipatesinthepensioninsuranceandunemploymentinsuranceplansestablishedbygovernmentauthoritiesbylaws.Undertheseplans,theCompanymakesmonthlycontributiontotheseplansbasedon14%and2%ofthepaidsalariesof its employees respectively.Otherthantheaforesaidmonthlycontribution,theCompany takes no further payment obligation. The relevant expenditure is included in current profit or loss or cost of relevantassetswhenoccurs.
38.Taxpayable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Value-addedtax|1,256,783.68|596,142.27|
|Businesstax|25,782.60|67,744.68|
|Enterpriseincometax|745,109.42|93,002,221.34|
|Individualincometax|40,662.68|31,172.70|
|Urbanmaintenanceandconstructiontax|64,952.41|15,383.51|
|Educationalsurtax|41,575.59|6,169.20|
|Embankmentexpenses|4,198.63|6,297.08|
|Housepropertytax|53,122.79|53,122.79|
|Total|2,232,187.80|93,778,253.57|

Otherexplanation:
Educationalsurtaxincludingeducationalsurtaxandlocaleducationalsurtax.Embankmentexpensesreferstothecollectionfees,and taxbylocaltaxbureauforWaterAffairsGroup
39.Interestpayable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Interestoverduewithoutpaid:
InRMB
||||
|-|-|-|
|Borrower|Amountoverdue|Reasons|
|Total|0.00|--|

Otherexplanation:
Nil
40.Dividends payable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation,includingdividendspayablewithoveroneyearageanddisclosureun-paymentreasons:
Nil
41.Otherpayable
(1)Classificationofotherpayableaccordingtonatureofaccount
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Custodianandcommonbenefitdebts|9,840,809.85|26,103,724.68|
|Currentmoney|9,370,269.08|8,851,010.21|
|Margin|1,903,346.00||
|Total|21,114,424.93|34,954,734.89|

 (2)Significantotherpayablewithoveroneyearage
InRMB
||||
|-|-|-|
|Item|Endingbalance|Reasonsofun-paidorcarry-over|
|Custodianandcommonbenefitdebts|9,840,809.85|Un-cleared|
|GuoshengEnergy|6,500,000.00|Interest-freeloans|
|Total|16,340,809.85|--|

Otherexplanation
Nil
42.Liabilityholdingreadyforsold
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
43.Non-currentliabilityduewithinoneyear
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
44.Othercurrentliability
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Changesofshort-termbondpayable:
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Bond|Facevalue|Releasedate|Bondperiod|Issuingamount|Openingbalance|IssuedinthePeriod|Accrualinterestbyfacevalue|Premium/discountamortization|PaidinthePeriod|Other|Endingbalance|
|Total|--|--|--|0.00||0.00|0.00|0.00|0.00|0.00||

Otherexplanation:
Nil
45.Long-termloans
(1)Classificationoflong-termloans
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Explanation:
Nil
Otherexplanation,includinginterestratesection:
Nil
46.Bondspayable
(1)Bondspayable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

(2) Changes of bonds payable (not including the other financial instrument of preferred stock and perpetualcapitalsecuritiesthatclassifyasfinancialliability)
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Bond|Facevalue|Releasedate|Bondperiod|Issuingamount|Openingbalance|IssuedinthePeriod|Accrualinterestbyfacevalue|Premium/discountamortization|PaidinthePeriod|Other|Endingbalance|
|Total|--|--|--|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

 (3)Convertibleconditionsandtimeforsharestransferfortheconvertiblebonds
Nil
(4)Otherfinancialinstrumentsclassifyasfinancialliability
Basicinformationoftheoutstandingpreferredstockandperpetualcapitalsecuritiesatperiod-end
Nil
Changesofoutstandingpreferredstockandperpetualcapitalsecuritiesatperiod-end
InRMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstandingfinancialinstrument|Period-begin||Increaseduringtheyear||Decreased||Period-end||
||Amount|Bookvalue|Amount|Bookvalue|Amount|Bookvalue|Amount|Bookvalue|
|Total|0|0.00|0|0.00|0|0.00|0|0.00|

 Basisforfinancialliabilityclassificationforotherfinancialinstrument
Nil
Otherexplanation
Nil
47.Long-termaccountpayable
(1)Listedbynature
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
48.Long-termemployeepayable
(1)Long-termemployeepayable
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

(2)Changesofdefinedbenefitplans
Presentvalueofthedefinedbenefitplans:
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|V.Endingbalance|0.00|0.00|

 Schemeassets:
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|I.Openingbalance|0.00|0.00|
|IV.Otherchanges|0.00|0.00|
|V.Endingbalance|0.00|0.00|

 Netliability(assts)ofthedefinedbenefitplans
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|

Contentofdefinedbenefitplansandrelevantrisks,impactonfuturecashflowoftheCompanyaswellastimesanduncertainty: Nil
Majoractuarialassumptionandsensitivityanalysis:
Nil
Otherexplanation:
Nil
49.Specialpayable
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|Causes|
|Total||0.00|0.00||--|

Otherexplanation:
Nil
50.Accruedliability
InRMB
|||||
|-|-|-|-|
|Item|Endingbalance|Openingbalance|Causes|

Otherexplanation,includingrelevantimportantassumptionsandestimation:
Nil
51.Deferredincome
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|Causes|
|Total||0.00|0.00||--|

Itemwithgovernmentgrantsinvolved:
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Openingbalance|NewgrantsinthePeriod|Amountreckonedinnon-operationrevenue|Otherchanges|Endingbalance|Assets-related/incomerelated|
|Total||0.00|0.00|0.00||--|

 Otherexplanation:
Nil
52.Othernon-currentliability
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|

Otherexplanation:
Nil
53.Share capital
InRMB
||||||||
|-|-|-|-|-|-|-|
|Openingbalance|Changeduringtheyear(+,-)|||||Endingbalance|
||Newsharesissued|Bonusshare|Sharestransferredfromcapitalreserve|Other|Subtotal||

||||
|-|-|-|
|Totalshares|551,347,947.00|551,347,947.00|

 Otherexplanation:
Nil
54.Otherequityinstrument
(1)Basicinformationoftheoutstandingpreferredstockandperpetualcapitalsecuritiesatperiod-end
Nil
(2)Changesofoutstandingpreferredstockandperpetualcapitalsecuritiesatperiod-end
InRMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstandingfinancialinstrument|Period-begin||Increaseduringtheyear||Decreased||Period-end||
||Amount|Bookvalue|Amount|Bookvalue|Amount|Bookvalue|Amount|Bookvalue|
|Total|0|0.00|0|0.00|0|0.00|0|0.00|

 Changesofotherequityinstrument,changereasonsandrelevantaccountingtreatmentbasis:
Nil
Otherexplanation:
Nil
55.Capitalreserve
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|Othercapitalreserve|627,819,910.12|14,333.71||627,834,243.83|
|Total|627,819,910.12|14,333.71||627,834,243.83|

 Otherexplanation,includingchangesandreasonsforchanges:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole shareholders;majorityshareholderGuoshengEnergydonated5,390,399.74Yuan.
56.Treasurystock
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|Total||0.00|0.00||

Otherexplanation,includingchangesandreasonsforchanges:
Nil
57.Othercomprehensiveincome
InRMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|Currentamount|||||Endingbalance|
|||Accountbeforeincometaxintheyear|Less:writteninothercomprehensiveincomeinpreviousperiodandcarriedforwardtogainsandlossesincurrentperiod|Less:incometaxexpense|Belongtoparentcompanyaftertax|Belongtominorityshareholdersaftertax||
|Totalothercomprehensiveincome||0.00|0.00|0.00||||

Otherexplanation,includingtheactivepartofthehedginggains/lossesofcashflowtransfertoinitialrecognizationadjustmentfor thearbitrageditems
Nil
58.Specialreserves
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|Total||0.00|0.00||

Otherexplanation,includingchangesandreasonsforchanges:
Nil
59.Surplusreserves
InRMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseduringtheyear|Decreased|Endingbalance|
|Statutorysurplusreserve|32,673,227.01|||32,673,227.01|
|Total|32,673,227.01|||32,673,227.01|

 Otherexplanation,includingchangesandreasonsforchanges:
Nil
60.Retained profit
InRMB
||||
|-|-|-|
|Item|Currentperiod|Lastperiod|
|Retainedprofitatperiod-endbeforeadjustment|-1,204,837,748.73|-2,780,061,643.62|
|Retainedprofitatperiod-beginafteradjustment|-1,204,837,748.73|-2,780,061,643.62|
|Add:netprofitattributabletoshareholdersof|4,885,678.56|1,575,223,894.89|

||||
|-|-|-|
|parentcompanyforthisyear|||
|Retainedprofitatperiod-end|-1,199,952,070.17|-1,204,837,748.73|

 Adjustmentforretainedprofitatperiod-begin:
1).RetroactiveadjustmentduetotheAccountingStandardsforBusinessEnterpriseandrelevantnewregulations,retainedprofitat period-beginhas0.00Yuanaffected;
2)Duetotheaccountingpolicychanges,retainedprofitatperiod-beginhas0.00Yuanaffected;
3)Duetothemajoraccountingerrorscorrection,retainedprofitatperiod-beginhas0.00Yuanaffected;
4)Consolidationrangechangedduetothesamecontrol,retainedprofitatperiod-beginhas0.00Yuanaffected;
5)Totalotheradjustmentimpacts0.00Yuanretainedprofitatperiod-begin
61.Operatingincome andoperating cost
InRMB
||||||
|-|-|-|-|-|
|Item|Currentamount||Lastamount||
||Income|Cost|Income|Cost|
|Mainbusiness|206,787,455.39|194,455,356.12|247,257,421.93|234,590,294.49|
|Otherbusiness|5,283,130.38|4,509,309.53|23,854,314.14|8,635,334.96|
|Total|212,070,585.77|198,964,665.65|271,111,736.07|243,225,629.45|

 62.Businesstaxandsurcharge
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Businesstax|250,697.67|1,317,642.75|
|Urbanmaintenanceandconstructiontax|150,619.25|239,184.73|
|Educationalsurtax|107,585.20|189,101.40|
|Total|508,902.12|1,745,928.88|

 Otherexplanation:
Nil
63.Salesexpense
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Salary|2,403,392.34|3,420,253.11|
|marketpromotioncosts|721,113.68|1,713,098.01|
|Leaseandpropertymanagementfee|666,701.92|163,976.00|
|Travelexpenses|479,398.60|443,084.40|

||||
|-|-|-|
|Other|1,069,856.86|983,016.80|
|Total|5,340,463.40|6,723,428.32|

 Otherexplanation:
Nil
64.Administration expense
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Salary|4,776,645.93|6,397,040.34|
|Leaseandpropertymanagementfee|2,801,452.78||
|Repaircharge|1,287,036.57|423,179.00|
|Intermediaryservicescharge|1,495,493.10|638,000.00|
|ListingandthreeMeetingscharge|1,273,981.93|1,536,025.55|
|Taxes|224,462.19|1,260,217.97|
|Amortizationanddepreciationcharge|79,066.98|1,505,441.25|
|RestructuringexpensesRestructuringcharge||70,732,704.23|
|Other|2,170,748.08|3,322,471.40|
|Total|14,108,887.56|85,815,079.74|

 Otherexplanation:
Nil
65.Financial expense
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Interestexpenditure|||
|Less:Interestincome|200,059.09|1,353,603.77|
|exchangeloss|-18.12|12,474.33|
|Other|26,623.61|41,695.44|
|Total|-173,453.60|-1,299,434.00|

 Otherexplanation:
Nil
66.LossfromAssetsdepreciation
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|

||||
|-|-|-|
|I.Baddebtlosses|48,575.61|36,762.61|
|Total|48,575.61|36,762.61|

 Otherexplanation:
Nil
67.Changesinfairvaluegains
InRMB
||||
|-|-|-|
|Changesresources|Currentamount|Lastamount|

Otherexplanation:
Nil
68.Investmentincome
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Investmentincomeobtainedfromdisposaloflong-termequityinvestment||72,934,048.27|
|Total||72,934,048.27|

 Otherexplanation:
Nil
69.Non-operation revenue
InRMB
|||||
|-|-|-|-|
|Item|Currentamount|Lastamount|Amountreckonedintonon-recurringgains/lossesintheYear|
|Totalgainsfromdisposalofnon-currentassets|39,731.46|1,611,736,449.40|39,731.46|
|Including:Gainsfromdisposaloffixedassets|39,731.46|1,611,736,449.40|39,731.46|
|gainsfromdebtrestructuring||333,713,048.78||
|Incomefromfineandpenalty|103,000.00||103,000.00|
|Other|14,542,620.77|105,982.72|14,542,620.77|
|Total|14,685,352.23|1,945,555,480.90|14,685,352.23|

 Governmentgrantsreckonedintocurrentgains/losses:
InRMB
|||||
|-|-|-|-|
|Item|Currentamount|Lastamount|Assets-related/gains-related|

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

Otherexplanation:
Other incomerefers to thecommon interests debts paid bycustodian
70.Non-operatingexpenditure
InRMB
|||||
|-|-|-|-|
|Item|Currentamount|Lastamount|Amountreckonedintonon-recurringgains/lossesintheYear|
|Totalnon-currentassetsdisposallosses|5,880.00|45,935.56|5,880.00|
|Including:fixedassetsdisposallosses|5,880.00|45,935.56|5,880.00|
|Accrualliability||284,397,067.92||
|Other|23,158.00|52,047.00|23,158.00|
|Total|29,038.00|284,495,050.48|29,038.00|

 Otherexplanation:
71.Incometaxexpense
(1)Incometaxexpense
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Currentincometax|2,157,857.16|93,000,059.74|
|Deferredincometax|-11,997.08||
|Total|2,145,860.08|93,000,059.74|

 (2)Adjustmentonaccountingprofitandincometaxexpenses
InRMB
|||
|-|-|
|Item|Currentamount|
|Totalprofit|7,928,859.26|
|Incometaxmeasuredbystatutory/applicabletaxrate|1,982,214.82|
|Impactoncost,expensesandlossesthatunabletodeducted|163,645.26|
|incometaxexpenses|2,145,860.08|

Otherexplanation
Nil
72.Othercomprehensiveincome
FoundmoreinNote57
73.Itemsofcashflowstatement
(1)Othercashreceivedinrelationtooperationactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Rentandutilitiesetc.|4,171,494.61|23,856,389.01|
|Custodian|107,015,588.61||
|OtherCurrentmoney|4,405,124.84|7,922,040.75|
|Total|115,592,208.06|31,778,429.76|

 Explanationonothercashreceivedinrelationtooperationactivities
Nil
(2)Othercashpaidinrelationtooperationactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|utilities|816,881.52|5,385,307.52|
|Restructuringexpenses||14,444,965.40|
|Marketsalesphaseexpensesasadvertisementpromoted|2,937,071.06|3,271,397.32|
|Managementphaseexpensesaslistingcharge,agencyfeeandthreeMeetingsoperationsexpensesandofficeexpenses|5,033,523.00|5,085,457.84|
|Rentandpropertyfeeandmaintenancefee|4,088,489.35|2,650,243.01|
|DepositandMarginpaid|2,800,580.55||
|OtherCurrentmoney|2,222,080.74|2,167,444.26|
|Total|17,898,626.22|33,004,815.35|

 Explanationonothercashpaidinrelationtooperationactivities
Nil
(3)Cashreceivedfromotherinvestmentactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|

Explanationoncashreceivedfromotherinvestmentactivities
Nil
(4)Cashpaidrelatedwithinvestmentactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|

|||
|-|-|
|Cashreducebysubsidiarydisposal|1,233,179.43|
|Total|1,233,179.43|

 Explanationoncashpaidrelatedwithinvestmentactivities
Nil
(5)Othercashreceivedinrelationtofinancingactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|ReplacementmoneyreceivedbyShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.||5,390,399.73|
|Total||5,390,399.73|

 Explanationonothercashreceivedinrelationtofinancingactivities
Nil
(6)Cashpaidrelatedwithfinancingactivities
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|LoansfromShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.paid||35,000,000.00|
|Total||35,000,000.00|

 Explanationoncashpaidrelatedwithfinancingactivities
Nil
74.Supplementaryinformationtostatementofcashflow
(1)Supplementaryinformationtostatementofcashflow
InRMB
||||
|-|-|-|
|Supplementaryinformation|ThisPeriod|LastPeriod|
|1.Netprofitadjustedtocashflowofoperationactivities:|--|--|
|Netprofit|5,782,999.18|1,575,858,760.02|
|Add:Assetsimpairmentprovision|48,575.61|36,762.61|
|Depreciationoffixedassets,consumptionofoilassetsanddepreciationofproductivebiologyassets|79,066.98|1,627,072.67|
|Amortizationofintangibleassets|753,000.00|862,862.04|
|Lossfromdisposaloffixedassets,intangibleassetsandotherlong-termassets(gainislistedwith“-”)|-33,851.46|-1,611,690,513.84|
|Investmentloss(gainislistedwith“-”)||-72,934,048.27|

||||
|-|-|-|
|Decreaseofdeferredincometaxasset((increaseislistedwith“-”)|-11,997.08||
|Decreaseofinventory(increaseislistedwith“-”)|-1,626,191.10|13,067,081.42|
|Decreaseofoperatingreceivableaccounts(increaseislistedwith“-”)|104,734,227.53|8,054,676.92|
|Increaseofoperatingpayableaccounts(decreaseislistedwith“-”)|-105,804,781.48|56,907,178.57|
|Netcashflowarisingfromoperatingactivities|3,921,048.18|-28,210,167.86|
|2.Materialinvestmentandfinancingnotinvolvedincashflow|--|--|
|3.Netchangeofcashandcashequivalents:|--|--|
|Balanceofcashatperiodend|30,163,866.78|26,834,171.59|
|Less:Balanceofcashatyear-begin|26,834,171.59|52,395,360.86|
|Netincreasingofcashandcashequivalents|3,329,695.19|-25,561,189.27|

 (2)NetcashpaidforobtainingsubsidiaryinthePeriod
InRMB
|||
|-|-|
||Amount|
|Including:|--|
|Including:|--|
|Including:|--|

Otherexplanation:
Nil
(3)NetcashreceivedbydisposingsubsidiaryinthePeriod
InRMB
|||
|-|-|
||Amount|
|Including:|--|
|Including:|--|
|Including:|--|

Otherexplanation:
Nil
(4)Constitutionofcashandcashequivalent:
InRMB
||||
|-|-|-|
|Item|Endingbalance|Openingbalance|
|Ⅰ.Cash|30,163,866.78|26,834,171.59|
|Including:Cashonhand|2,894.71|49,992.08|
|Bankdepositavailableforpaymentatanytime|30,160,972.07|26,784,179.51|
|Ⅲ.Balanceofcashandcashequivalentatperiod-end|30,163,866.78|26,834,171.59|

Otherexplanation:
Nil
75.Notesofchangesofowners’equity
Explainthenameandadjustedamountin“Other”atendoflastperiod:
Nil
76.Assetswithownershiporuserightrestricted
InRMB
||||
|-|-|-|
|Item|Endingbookvalue|Restrictionreasons|
|Total|0.00|--|

Otherexplanation:
Nil
77.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
InRMB
|||||
|-|-|-|-|
|Item|Endingforeigncurrencybalance|Convertrate|EndingRMBbalanceconverted|
|HKD|32.25|0.78887|25.44|

 Otherexplanation:
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 currencychanged,explainreasons
□Applicable√Notapplicable
78.Hedging
Disclosedhedgingitemsandrelevanthedginginstrumentbasedonhedging’scategory,disclosedqualitativeandquantitative informationforthearbitragerisks:
Nil
79.Other
Nil
VIII. Changes ofconsolidationrange
1.Enterprisecombinedunderdifferentcontrol
(1)EnterprisecombinedunderdifferentcontrolinthePeriod
InRMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Acquiree|Timepointforequityobtained|Costofequityobtained|Ratioofequityobtained|AcquiredwayEquityobtainedway|Purchasingdate|Standardtodeterminethepurchasingdate|Incomeofacquireefrompurchasingdatetoperiod-end|Netprofitofacquireefrompurchasingdatetoperiod-end|

 Otherexplanation:
Nil
(2)Combinationcostandgoodwill
Nil
Determinationmethodforfairvalueofthecombinationcostandcontingentconsiderationandchanges:
Nil
Mainreasonsforlargegoodwillresulted:
Nil
Otherexplanation:
Nil
(3)Identifiableassetsandliabilityonpurchasingdateundertheacquiree
Nil
Determinationmethodforfairvalueoftheidentifiableassetsandliabilities:
Nil
Contingentliabilityoftheacquireebearduringcombination:
Nil
Otherexplanation:
(4)Gainsorlossesarisingfromre-measuredbyfairvaluefortheequityheldbeforepurchasingdate Whetheritisabusinesscombinationrealizedbytwoormoretransactionsofexchangeandatransactionofobtaintedcontrolrightsin thePeriodornot
□Y√N
(5) On purchasing date or period-end of the combination, combination consideration or fair value of identifiableassetsandliabilityfortheacquireeareun-abletoconfirmrationally
Nil
(6)Otherexplanation
Nil
2.Enterprisecombinedunderthesamecontrol
(1)EnterprisecombinedunderthesamecontrolinthePeriod
InRMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Acquiree|Equityratioobtainedincombination|Basisofcombinedunderthesamecontrol|Combinationdate|Standardtodeterminethecombinationdate|Incomeofthecombinedpartyfromperiod-beginofcombinationtothecombinationdate|Netprofitofthecombinedpartyfromperiod-beginofcombinationtothecombinationdate|Incomeofthecombinedpartyduringthecomparisionperiod|Netprofitofthecombinedpartyduringthecomparisionperiod|

Otherexplanation:
Nil
(2)Combinationcost
Explanationoncontingentconsiderationanditschanges:
Nil
Otherexplanation:
Nil
(3)Assetsandliabilityofthecombinedpartyoncombinationdate
Nil
Contingentliabilityofthecombinedpartybearduringcombination
Nil
Otherexplanation:
Nil
3.Counterpurchase
Basictransactioninformation,basisofcounterpurchase,whethermakingupbusinessduetotheassetsandliabilityreservedbylisted companyandbasis,determinationofcombinationcost,amountandcalculationonadjustedequitybyequitytransaction
Nil
4.Subsidiarydisposal
Whetherlostcontrollingrightswhiledisposesubsidiaryononetimeornot
□Y√N
WhetherlostcontrollingrightsinthePeriodwhiledisposesubsidiaryontwoormorestepsornot
□Y√N
5.Otherreasonsforconsolidationrangechanged
Reasonsforchangedonconsolidationrange(suchasnewsubsidiaryestablished,subsidiaryliquidatedetc.)Andrelevantinformation Nil
6.Other
Nil
IX.Equity in otherentity
1.Equityinsubsidiary
(1)Constituteofenterprisegroup
||||||||
|-|-|-|-|-|-|-|
|Subsidiary|Mainoperationplace|Registeredplace|Businessnature|Share-holdingratio||Acquiredway|
|||||Directly|Indirectly||
|ShenzhenEmmelleIndustrialCo.,Ltd.|Shenzhen|Shenzhen|Bicycleandsparepartsdistribution|70.00%||Investment|

Explanationonshare-holdingratioinsubsidiarydifferentfromratioofvotingright:
Nil
Basisforcontrollingtheinvestedentitywithhalforbelowvotingrightsheldandwithoutcontrollinginvestedentitybutwithover halfandovervotingrights
Nil
Controllingbasisforthestructuringentityincludedinconsolidatedrange
Controlling70%
Basisondeterminingtobeaagentorconsignor:
Nil
Otherexplanation:
Nil
(2)Importantnon-wholly-ownedsubsidiary
InRMB
||||||
|-|-|-|-|-|
|Subsidiary|Share-holdingratioofminority|Gains/lossesattributabletominorityinthePeriod|DividendannouncedtodistributeforminorityinthePeriod|Endingequityofminority|
|ShenzhenEmmelleIndustrialCo.,Ltd.|30.00%|897,320.62||1,592,758.40|

Explanationonshare-holdingratioofminoritydifferentfromratioofvotingright:
Nil
Otherexplanation:
Nil
(3)Mainfinanceoftheimportantnon-wholly-ownedsubsidiary
InRMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiary|Endingbalance||||||Openingbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliability|Non-currentliability|Totalliability|Currentassets|Non-currentassets|Totalassets|Currentliability|Non-currentliability|Totalliability|
|ShenzhenEmmelleIndustrialCo.,Ltd.|44,487,141.91|161,628.03|44,648,769.94|39,339,575.27||39,339,575.27|37,646,022.22|118,804.37|37,764,826.59|35,446,700.66||35,446,700.66|

InRMB
||||
|-|-|-|
|Subsidiary|Currentamount|Lastamount|

||||||||||
|-|-|-|-|-|-|-|-|-|
||OperationIncome|Netprofit|Totalcomprehensiveincome|Cashflowfromoperationactivity|OperationIncome|Netprofit|Totalcomprehensiveincome|Cashflowfromoperationactivity|
|ShenzhenEmmelleIndustrialCo.,Ltd.|208,519,758.34|2,991,068.74|2,991,068.74|3,078,423.02|246,343,829.03|2,116,217.11|2,116,217.11|5,738,378.32|

Otherexplanation:
Nil
(4)Majorrestrictiononusingcorporate’sassetsandliquidatecorporate’sdebts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial statement
Nil
Otherexplanation:
Nil
2.Transactionthathasownersequityshareschangedinsubsidiarybutstillwithcontrollingrights
(1)Ownersequityshareschangedinsubsidiary
Nil
(2)Impactonminority’sinterestandowners’equityattributabletoparentcompany
Nil
Otherexplanation
Nil
3.Equityinjointventureandcooperativeenterprise
(1)Importantjointventureandcooperativeenterprise
||||||||
|-|-|-|-|-|-|-|
|Name|Mainoperationplace|Registeredplace|Businessnature|Share-holdingratio||Accountingtreatmentoninvestmentforjointventureandcooperative|
|||||Directly|Indirectly||

||
|-|
|enterprise|

 Share-holdingratioorsharesenjoyeddifferentfromvotingrightratio:
Nil
Basisofthevotingrightswith20%belowbutwithmajorinfluence,orwithoutmajorinfluencebutwithover20%(20%included) votingrightshold:
Nil
(2)Mainfinancialinformationoftheimportantjointventure
Nil
Otherexplanation
Nil
(3)Mainfinancialinformationoftheimportantcooperativeenterprise
Nil
Otherexplanation
Nil
(4)Financialsummaryforun-importantjointventureorcooperativeenterprise
InRMB
||||
|-|-|-|
||Endingbalance/Currentamount|Openingbalance/Lastamount|
|Jointventure|--|--|
|Totalnumbersmeasuredbyshare-holdingratio|--|--|
|Cooperativeenterprise|--|--|
|Totalnumbersmeasuredbyshare-holdingratio|--|--|

Otherexplanation
Nil
(5)Assetstransferabilityhasmajorrestrictionfromjointventureorcooperativeenterprise
Nil
(6)Excesslossesfromjointventureorcooperativeenterprise
InRMB
|||||
|-|-|-|-|
|Name|Cumulativeun-confirmedlosses|Un-confirmedlossesnotrecognizedinthePeriod(ornet|Cumulativeun-confirmedlossesatperiod-end|

||
|-|
|profitenjoyedinthePeriod)|

Otherexplanation
Nil
(7)Un-confirmedcommitmentwithinvestmentconcernedwithjointventure
Nil
(8)Contingentliabilitywithinvestmentconcernedwithjointventureorcooperativeenterprise
Nil
4.Co-runsoperation
|||||||
|-|-|-|-|-|-|
|Name|Mainoperationplace|Registeredplace|Businessnature|Share-holdingratio/shareenjoyed||
|||||Directly|Indirectly|

 Share-holdingratioorsharesenjoyeddifferentfromvotingrightratio:
Nil
Iftheco-runsentityistheseparateentity,basisoftheco-runsclassification
Nil
Otherexplanation
Nil
5.Equityinstructuringentitythatexcludingintheconsolidatedfinancialstatement
Relevantexplanation
Nil
6.Other
Nil
X. Riskrelated with financialinstrument
Nil
XI.Disclosure offairvalue
1.Endingfairvalueoftheassetsandliabilitiesmeasuredbyfairvalue
InRMB
|||
|-|-|
|Item|Endingfairvalue|

||||||
|-|-|-|-|-|
||First-order|Second-order|Third-order|Total|
|I.Sustainingmeasuredbyfairvalue|--|--|--|--|
|II.Non-persistentmeasure|--|--|--|--|

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order
Nil
3.Valuation technique and qualitative andquantitative information onmajor parameters forthe fair value measuresustainingandnon-persistentonsecond-order
Nil
4.Valuation technique and qualitative andquantitative information onmajor parameters forthe fair value measuresustainingandnon-persistentonthird-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure sustainingandnon-persistentonthird-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for conversionandpolicyforconversiontimepoint
Nil
7.ChangesofvaluationtechniqueinthePeriod
Nil
8.Financialassetsandliabilitynotmeasuredbyfairvalue
Nil
9.Other
Nil
XII. Related party and related transactions
1.Parentcompanyoftheenterprise
|||||||
|-|-|-|-|-|-|
|Parentcompany|Registrationplace|Businessnature|Registeredcapital|Share-holdingratioontheenterpriseforparentcompany|Votingrightratioontheenterprise|
|ShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.|Shenzhen|Industrialinvestment,domesticcommerce,supplyandmarketingmaterials(excludingmonopolizedcommodities,andcommodityunderspecialgovernmentcontrol)|RMB220million|11.52%|11.52%|

Explanationonparentcompanyoftheenterprise
Nil
UltimatecontrolleroftheCompanyisJiHanfei
Otherexplanation:
Nil
2.SubsidiaryoftheEnterprise
FoundmoreinVI(4)ofSectionIV
3.Cooperativeenterpriseandjointventure
FoundmoreinIX.3ofNoteXI.
OthercooperativeenterpriseandjointventurethathaverelatedtransactionwiththeCompanyinthePeriodoroccurredinpervious period
|||
|-|-|
|Name|Relationship|

Otherexplanation
Nil
4.Otherrelatedparty
|||
|-|-|
|Otherrelatedparty|RelationshipwiththeEnterprise|

Otherexplanation
Nil
5.Relatedtransaction
(1)Goodspurchasing,laborserviceprovidingandreceiving
Goodspurchasing/laborservicereceiving
InRMB
|||||
|-|-|-|-|
|Relatedparty|Content|Currentamount|Lastamount|

Goodssold/laborserviceproviding
InRMB
|||||
|-|-|-|-|
|Relatedparty|Content|Currentamount|Lastamount|

Explanationongoodspurchasing,laborserviceprovidingandreceiving
Nil
(2)Relatedtrusteeship/contractanddelegatedadministration/outsourcing
Trusteeship/contract
InRMB
||||||||
|-|-|-|-|-|-|-|
|Client/contract-outparty|Entrustingparty/contractor|Assetstype|Startingdate|Maturitydate|Yieldpricingbasis|Incomefromtrusteeship/contract|

 Explanationonrelatedtrusteeship/contract
Nil
Delegatedadministration/outsourcing
InRMB
||||||||
|-|-|-|-|-|-|-|
|Client/contract-outparty|Entrustingparty/contractor|Assetstype|Startingdate|Maturitydate|Pricingbasisoftrusteefee/outsourcingfee|trusteefee/outsourcingfeerecognizedinthePeriod|

 Explanationonrelatedadministration/outsourcing
Nil
(3)Relatedlease
AsalessorfortheCompany
InRMB
|||||
|-|-|-|-|
|Lessee|Assetstype|LeaseincomeinrecognizedinthePeriod|LeaseincomeinrecognizedlastthePeriod|

AsalesseefortheCompany
InRMB
|||||
|-|-|-|-|
|Lessor|Assetstype|LeaseincomeinrecognizedinthePeriod|LeaseincomeinrecognizedlastthePeriod|

Explanationonrelatedlease
Nil
(4)Relatedguarantee
AsaguarantorfortheCompany
InRMB
||||||
|-|-|-|-|-|
|Securedparty|Amountguarantee|Startingdate|Maturitydate|Guaranteecompleted(Y/N)|

AsasecuredpartyfortheCompany
InRMB
||||||
|-|-|-|-|-|
|Guarantor|Amountguarantee|Startingdate|Maturitydate|Guaranteecompleted(Y/N)|

Explanationonrelatedguarantee
Nil
(5)Borrowedfundsofrelatedparty
InRMB
||||||
|-|-|-|-|-|
|Relatedparty|Borrowedfunds|Startingdate|Maturitydate|Note|
|Borrowing|||||
|Lending|||||

(6)Assetstransferanddebtrestructuringofrelatedparty
InRMB
|||||
|-|-|-|-|
|Relatedparty|Transactioncontent|Currentamount|Lastamount|

(7)Remunerationofkeymanager
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|
|Remunerationofkeymanager|1,592,000.00|2,164,100.00|

(8)Otherrelatedtransactions
Nil
6.Receivable/payableitemsofrelatedparties
(1)Receivableitem
InRMB
|||||||
|-|-|-|-|-|-|
|Item|Relatedparty|Endingbalance||Openingbalance||
|||Bookbalance|Baddebtprovision|Bookbalance|Baddebtprovision|

 (2)Payableitem
InRMB
|||||
|-|-|-|-|
|Item|Relatedparty|Endingbookbalance|Openingbookbalance|
|Otheraccountpayable|ShenzhenGuoshengEnergyInvestmentDevelopmentCo.,Ltd.|6,500,000.00|6,500,000.00|

7.Commitmentsofrelatedparty
Nil
8.Other
Nil
XIII. Share-based payment
1.Generalshare-basedpayment
□Applicable√Notapplicable
2.Share-basedpaymentsettledbyequity
□Applicable√Notapplicable
3.Share-basedpaymentsettledbycash
□Applicable√Notapplicable
4.Revisedandterminationonshare-basedpayment
Nil
5.Other
Nil
XIV. Commitmentor contingency
1.Importantcommitments
Importantcommitmentsinbalancesheetdate
Nil
2.Contingency
(1)Contingencyonbalancesheetdate
Nil
(2)FortheimportantcontingencynotnecessarytodisclosedbytheCompany,explainedreasons
TheCompanyhasnoimportantcontingencythatneedtodisclosed
3.Other
Nil
XV. Events afterbalance sheetdate
1.Importantnon-adjustmentitems
InRMB
|||||
|-|-|-|-|
|Item|Content|Impactonfinancialstatusandoperationresults|Reasonsonun-abletoestimatedtheimpactnumber|

 2.Profitdistribution
InRMB
3.Salesreturn
4.Othereventsafterbalancesheetdate
XVI. Otherimportant events
1.Previousaccountingerrorscollection
(1)Retrospectiverestatement
InRMB
|||||
|-|-|-|-|
|Content|Treatmentprocedures|Impactitemsofstatementduringacomparison|Cumulativeimpactednumber|

(2)Prospectiveapplication
||||
|-|-|-|
|Accountingerrorcorrection|Approvalprocedures|Reasonsforprospectiveapplicationadopted|

2.Debtrestructuring
TheCompanyislookingforwardarestructuringparty
3.Assetsreplacement
(1)Non-monetaryassetschange
Nil
(2)Otherassetsreplacement
Nil
4.Pensionplan
Nil
5.Discontinuedoperations
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Revenue|Expenses|Totalprofit|Incometaxexpenses|Netprofit|Discontinuedoperationsprofitattributabletoownersofparent|

||
|-|
|company|

 Otherexplanation
Nil
6.Segment
(1)Recognitionbasisandaccountingpolicyforreportablesegment
Nil
(2)Financialinformationforreportablesegment
Nil
(3) The company has no reportable segments, or unable to disclose total assts and total liability for reportablesegments,explainreasons
Nil
(4)Otherexplanation
Nil
7.Majortransactionandeventsmakesinfluenceoninvestor’sdecision
Nil
8.Other
Nil
XVII.Principlenotes of financialstatements ofparentcompany
1.Accountsreceivable
(1)Category
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Types|Endingbalance|||||Openingbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Ratio|Amount|Accrualratio||Amount|Ratio|Amount|Accrualratio||
|Receivableswithbaddebtprovision|694,416.00|100.00%|||694,416.00|245,382.00|100.00%|||245,382.00|

||||||||
|-|-|-|-|-|-|-|
|accrualbycreditportfolio|||||||
|Total|694,416.00|100.00%|694,416.00|245,382.00|100.00%|245,382.00|

Receivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod:
□Applicable√Notapplicable
Incombination,accountsreceivablewhosebaddebtsprovisionwasaccruedbyageanalysis:
√Applicable□Notapplicable
InRMB
|||||
|-|-|-|-|
|Age|Endingbalance|||
||Accountreceivable|Baddebtprovision|Accrualratio|
|withinoneyear||||
|withinoneyear|694,416.00|||
|Total|694,416.00|||

Explanationsoncombinationdetermine:
Nil
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforaccountreceivable:
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforaccountreceivable:
Nil
(2)Baddebtprovisionaccrual,collectedorreversed
Accrualbaddebtprovision0.00Yuan;collectedorreversed0.00Yuan.
MajorbaddebtprovisionreversalorcollectedinthePeriod
InRMB
||||
|-|-|-|
|Company|Amountreversalorcollected|Collectionway|
|Total|0.00|--|

Nil
(3)Receivablesactuallywritten-offduringthereportingperiod
InRMB
|||
|-|-|
|Item|Amountwrittenoff|

Written-offforthemajorreceivable
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Natureofreceivables|Amountwrittenoff|Reasonforwrite-off|Proceduresimplemented|Arisingfromrelatedtransactions|

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

Explanationforwrite-offofreceivables
Nil
(4)Top5receivablesatendingbalancebyarrearsparty
Endingbalanceofreceivableatperiodendfortheparentcompany694,416.00Yuanwasthegoodmoneyreceivable fromassociatedsubsidiaryShenzhenEmmelleIndustrialCo.,Ltd.
(5)Receivablederecognitionduetotransferoffinancialassets
Nil
(6)Assetsandliabilityresultedbyreceivabletransferandcontinuousinvolvement
Nil
Otherexplanation:
Nil
2.Otheraccountsreceivable
(1)Classification
InRMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type|Endingbalance|||||Openingbalance|||||
||Bookbalance||Baddebtprovision||Bookvalue|Bookbalance||Baddebtprovision||Bookvalue|
||Amount|Ratio|Amount|Accrualratio||Amount|Ratio|Amount|Accrualratio||
|Otherreceivableswithbaddebtprovisionaccrualbycreditportfolio|13,714,620.41|100.00%|587.29||13,714,033.12|116,990,372.76|100.00%|||116,990,372.76|
|Total|13,714,620.41|100.00%|587.29||13,714,033.12|116,990,372.76|100.00%|||116,990,372.76|

 Otherreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod
□Applicable√Notapplicable
Incombination,otheraccountsreceivablewhosebaddebtsprovisionwasaccruedbyageanalysis
√Applicable□Notapplicable
InRMB
|||||
|-|-|-|-|
|Age|Endingbalance|||
||Otherreceivable|baddebtsprovision|Accrualratio|
|withinoneyear||||
|Subtotalofwithinoneyear|13,714,620.41|587.29||
|Total|13,714,620.41|587.29||

Explanationsoncombinationdetermine:
Nil
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforotheraccountreceivable
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforotheraccountreceivable
□Applicable√Notapplicable
(2)Baddebtprovisionaccrual,collectedorreversed
Accrualbaddebtprovision0.00Yuan;collectedorreversed0.00Yuan.
MajorbaddebtprovisionreversalorcollectedinthePeriod
InRMB
||||
|-|-|-|
|Company|Amountreversalorcollected|Collectionway|
|Total|0.00|--|

Nil
(3)Otherreceivablesactuallywritten-offduringthereportingperiod
InRMB
|||
|-|-|
|Item|Amountwrittenoff|

Written-offforthemajorotherreceivable:
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Natureofotherreceivables|Amountwrittenoff|Reasonforwrite-off|Proceduresimplemented|Arisingfromrelatedtransactions|
|Total|--|0.00|--|--|--|

Explanationforwrite-offofotherreceivables:
Nil
(4)Otherreceivablesbynature
InRMB
||||
|-|-|-|
|Nature|Endingbookbalance|Openingbookbalance|
|Currentmoney|13,714,620.41|116,990,372.76|

||||
|-|-|-|
|Total|13,714,620.41|116,990,372.76|

 (5)Top5otherreceivablesatendingbalancebyarrearsparty
InRMB
|||||||
|-|-|-|-|-|-|
|Company|Nature|Endingbalance|Bookage|Ratiointotalendingbalanceofotherreceivables|Endingbalanceofbadbetprovision|
|ShenzhenEmmelleIndustrialCo.,Ltd.|Currentmoney|13,518,858.41|withinoneyear|98.57%||
|Total|--|13,518,858.41|--|98.57%||

(6)Accountreceivablewithgovernmentsubsidyinvolved
InRMB
||||||
|-|-|-|-|-|
|Company|Item|Endingbalance|Endingbookage|Time,amountandbasisformoneycollected|
|Total|--|0.00|--|--|

(7)Otherreceivablederecognitionduetotransferoffinancialassets
Nil
(8)Assetsandliabilityresultedbyotherreceivabletransferandcontinuousinvolvement
Nil
Otherexplanation:
Nil
3.Long-termequityinvestment
InRMB
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Openingbalance|||
||Bookbalance|Impairment|Bookvalue|Bookbalance|Impairment|Bookvalue|
|Investmentforsubsidiary|1,400,000.00|1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|
|Total|1,400,000.00|1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|

(1)Investmentforsubsidiary
InRMB
||||||||
|-|-|-|-|-|-|-|
|Theinvestedentity|Openingbalance|Increased|Decreased|Endingbalance|Impairmentaccrual|Endingbalanceofimpairmentprovision|
|ShenzhenEmmelleIndustrialCo.,Ltd.|1,400,000.00|||1,400,000.00||1,389,620.27|
|Total|1,400,000.00|0.00|0.00|1,400,000.00|0.00|1,389,620.27|

 (2)Investmentforassociatesandjointventure
InRMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Company|Openingbalance|+,-||||||||Endingbalance|Endingbalanceofimpairmentprovision|
|||Additionalinvestment|Capitalreduction|Investmentgainsrecognizedunderequity|Othercomprehensiveincomeadjustment|Otherequitychange|Cashdividendorprofitannouncedtoissued|Impairmentaccrual|Other|||
|I.Jointventure||||||||||||
|II.Associatedenterprise||||||||||||

(3)Otherexplanation
Nil
4.Operatingincomeandcost
InRMB
||||||
|-|-|-|-|-|
|Item|Currentamount||Lastamount||
||Income|Cost|Income|Cost|
|Mainbusiness|||475,138.46|427,068.73|
|Otherbusiness|7,287,880.92|4,505,933.46|25,829,410.17|8,634,522.99|
|Total|7,287,880.92|4,505,933.46|26,304,548.63|9,061,591.72|

 Otherexplanation:
Nil
5.Investmentgains
InRMB
||||
|-|-|-|
|Item|Currentamount|Lastamount|

6.Other
Nil
XVIII.Supplementary Information
1.Current non-recurringgains/losses
√Applicable□Notapplicable
InRMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)|33,851.46||
|Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems|14,622,462.77||
|Less:Impactonincometax|3,664,078.56||
|Impactonminorityshareholders’equity|33,117.41||
|Total|10,959,118.26|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingto the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their SecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
2.REOandearningspershare
|||||
|-|-|-|-|
|Profitsduringreportperiod|WeightedaverageROE|Earningspershare||
|||BasicEPS(RMB/Share)|DilutedEPS(RMB/Share)|
|NetprofitsbelongtocommonstockstockholdersoftheCompany|51.72%|0.0089|0.0089|
|NetprofitsbelongtocommonstockstockholdersoftheCompanyafterdeductingnonrecurringgainsandlosses|-64.30%|-0.0110|-0.0110|

3.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International AccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference adjustmentfordataauditedbyforeignauditingorgan,notedthenameofsuchforeignorgan
Nil
4.Supplementationforchangeofaccountingpolicy
□Applicable√Notapplicable
5.Other
Nil
Section XII. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in chargeofaccountingandpersoninchargeofaccountingorgan;
2.OriginalauditreportwithsealoftheaccountingfirmandsignatureandsealofCPAs;
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignatedbyCSRCinthereportperiod;
4.EnglishversionoftheAnnualReport2014