Shenzhen China Bicycle Company (Holdings) Limited SEMI-ANNUAL REPORT 2014
August 2014
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.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Luo Guiyou, principal of the Company, Li Hai, person in charger of accounting works and Sun Longlong, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of Semi-Annual Report 2014 is authentic, accurate and complete.
Section II Company profile
I. Company Profile
|||||
|-|-|-|-|
|Short form for share|Zhonghua – A, Zhonghua -B|Code for share|000017, 200017|
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the Company|深圳中华自行车(集团)股份有限公司|||
|Abbr. of Chinese name of the||||
||深中华|||
|Company(if applicable)||||
|English name of the||||
||CHINA BICYCLE COMPANY (HOLDINGS) LIMITED|||
|Company(if applicable)||||
|Abbr. of English name of the||||
||CBC|||
|Company(if applicable)||||
|Legal Representative|Luo Guiyou|||

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

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
√ Applicable□ Not applicable
|||
|-|-|
|Registrations add.|No. 3008, Buxin Road, Shenzhen|
|Code for registrations add|518020|
|Offices add.|Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen|
|Codes for office add.|518023|
|Company’s Internet Web Site|www.cbc.com.cn|

|||
|-|-|
|E-mail|dmc@szcbc.com.cn|
|Query date for temporary notice disclosed on||
||--|
|appointed website (if applicable)||

2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
√ Applicable□ Not applicable
|||
|-|-|
|Newspaper appointed for information disclosure|Securities Times; Hong Kong Commercial Daily|
|Website for annual report publish appointed by||
||www.cninfo.com.cn|
|CSRC||
|Preparation place for annual report|Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen|
|Query date for temporary notice disclosed on||
||--|
|appointed website (if applicable)||
|Query index for temporary notice disclosed on||
||--|
|appointed website (if applicable)||

3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable√ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2013.
Section III. Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this report|
||Current period|Same period of last year||
||||y-o-y|
|Operating revenue (RMB)|85,666,634.40|104,903,520.59|-18.34%|
|Net profit attributable to shareholders of the|1,874,649.46|-29,283,608.20||
||||-106.40%|
|listed company(RMB)||||
|Net profit attributable to shareholders of the||||
|listed company after deducting|-2,694,064.82|2,197,124.06|-222.62%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|2,745,840.89|-20,556,480.08||
||||-113.36%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|0.0034|-0.0531|-106.40%|
|Diluted earnings per share (RMB/Share)|0.0034|-0.0531|-106.40%|
|Weighted average ROE|23.61%|1.70%|21.91%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|71,080,200.32|151,511,429.85|-53.09%|
|Net assets attributable to shareholder of|8,877,984.86|7,003,335.40||
||||26.77%|
|listed company(RMB)||||

II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|33,851.46||
|write-off that accrued for impairment of assets)|||
|Other non-operating income and expenditure except the|4,845,452.91||
|abovementioned|||
|Less: Impact on income tax|280,473.51||
|Impact on minority shareholders’ equity (post-tax)|30,116.58||
|Total|4,568,714.28|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section 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 warning since 14 May 2014
In the first half of 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, manufature costs and capital costs, total available market continue to fall. In consepence of the low market entry barries and mutiple vendors, market is extremely competitive and the Company runs in an unfavorable enviornment. However, with the development of social economic in China and changes of the concept of life, the consciousness of gree travel and practice relaxation continues been arounded, bicycle industry stands in the opportunity of structural development. In the first half year, 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, greadually establish the mode of supermarket-operation and E-commerce; in aspect of product research, continues to strengthen the development of 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 manaagement and office automation. Through carrying out various operations, under the circumstances of slightly down in bicycle business over that of last year in the first half year, the gross profit from bicycle operation stands the same as lastyear’s, business operation of the bicycle maintains a smooth and healthy running.
II. Main business analysis
Y-o-y changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||||Y-o-y||
|||Same period of|||
||Current period||increase/decre|Reasons for changes|
|||last year|||
||||ase||
|Operation revenue|85,666,634.40|104,903,520.59|-18.34%||
|Operation cost|80,326,800.62|92,139,173.51|-12.82%||
||1,856,602.82|3,589,369.24||Sales expense of subsidiary Emmelle|
|Sales expenses|||-48.27%||
|||||decreased|
||5,077,370.04|38,509,731.68||There is economic compensation due to|
|Administrative expenses|||-86.82%||
|||||restructuring at same period of last year|
||-98,274.42|-198,651.27||Monetary fund decreased and interest|
|Financial cost|||-50.53%||
|||||income declined|

||||||
|-|-|-|-|-|
|Income tax expense|789,686.25||||
|Net cash flow arising from|2,745,840.89|-20,556,480.08||Expenses paid for bankruptcy|
||||-113.36%||
|operation activities||||restructuring at same period of last year|
|Net cash flow arising from|-219,304.27|27,570.94||Dispose assets at same period of last year|
||||-895.42%||
|investment activities||||and purchased fixed asset in the Period|
|Net increase of cash and cash|2,526,536.62|-20,528,909.14||Expenses paid for bankruptcy|
||||-112.31%||
|equivalent||||restructuring at same period of last year|
|||||Subsidiary EMMELLE’s account|
|Accounts receivable|2,207,762.11|7,060,251.28|-68.73%||
|||||receivable decreased in the Period-end|
|||||Subsidiary EMMELLE’s account paid in|
|Advance payment|943,983.29|177,636.49|431.41%||
|||||advance increased in the Period-end|
|||||Account receivables from administrators|
|Other account receivable|560,467.78|107,395,429.69|-99.48%||
|||||decreased|
|||||Subsidiary EMMELLE prepare goods for|
|Inventory|22,846,440.68|4,545,116.43|402.66%||
|||||sales peak season|
|Fixed assets|452,133.85|227,824.37|98.46%|Purchase new fixed assets|
|||||Account payables increased due to the|
|Account payables|25,020,457.21|9,935,720.73|151.82%|stock ready for sale peak season from|
|||||subsidiary EMMELLE|
|||||Subsidiary EMMELLE’s account|
|Account received in advance|6,027,223.64|3,627,323.31|66.16%||
|||||received in advance increased|
|||||The enterprise income tax for year of|
|Taxes payable|1,731,786.24|93,778,253.57|-98.15%||
|||||2013 paid in the Period|
|||||Account payable to administrator|
|Other payables|26,819,638.25|34,954,734.89|-23.27%||
|||||decreased|

Major changes on profit composition or profit resources in reporting period
√ Applicable□ Not applicable
The net profit attributable to shareholders of listed company was RMB 1,870,000 in January to June 2014, and the net profit attributable to shareholders of listed company was RMB -29,280,000 in January to June 2013. Turn losses into gains mainly because: operation business runs normally after restructuing procedures closed, and losses in same period of last year mainly because the Company paying off labor claim for employees, than the current administration expenses increased
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable√ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
Nil
III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||||Gross||||
||Operating revenue|Operating cost||operating revenue|operating cost|profit ratio over|
||||profit ratio||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Bicycle and sales of|||||||
||82,413,282.09|77,743,826.24|5.67%|-9.52%|-9.79%|0.28%|
|spare parts|||||||
|Leasing management|0.00|0.00||-100.00%|-100.00%|20.83%|
|According to products|||||||
|OEM electric vehicle|62,313,134.43|58,778,064.57|5.67%|-10.60%|-11.29%|0.74%|
|OEM bicycle|19,947,262.69|18,760,980.47|5.95%|-4.17%|-3.34%|-0.81%|
|CBC bicycle|94,461.57|112,515.09|-19.11%|-66.47%|-51.89%|-36.09%|
|Other|58,423.40|92,266.11|-57.93%|-79.63%|-66.68%|-61.37%|
|Leasing management|0.00|0.00||-100.00%|-100.00%|20.83%|
|According to region|||||||
|Shenzhen|653,776.07|613,280.36|6.19%|-80.44%|-81.78%|6.91%|
|Other places|81,759,506.02|77,130,545.88|5.66%|-8.24%|-8.68%|0.45%|

 IV. Core competitive-ness analysis
Despite the fierce market competition in the bicycle industry as a conventional industry, the increased awareness of green commuting, leisure and exercises as a result of the development ofChina’s social economy and the change ofpeople’s living concept creates structural development opportunity for the bicycle industry. The Company will continue to do better in various aspects of operation such as market development, product development and quality management so as to maintain and improve theCompany’s ability to continue as a going concern before the restructuring. On the other side, the Company has set out the condition of introduction of investors in the restructuring plan with expectation to restore its ability to continue as a going concern and its continuous profitability through the restructuring of assets.
V. Investment analysis
1. Equity investment outside
(1) Investment outside
□ Applicable√ Not applicable
The Company has no investment outside in the Period
(2) Holding equity of financial enterprise
□ Applicable√ Not applicable
The Company has no equity of financial enterprise held in the Period
(3) Securities investment
□ Applicable√ Not applicable
The Company has no securities investment in the Period
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable√ Not applicable
The Company has no trust financing in the Period
(2) Investment of derivatives
□ Applicable√ Not applicable
The Company has no derivatives investment in the Period
(3) Entrustment loan
□ Applicable√ Not applicable
The Company has no entrustment loan in the Period
3. Application of raised proceeds
(1)Overall application of raised proceeds
□ Applicable√ Not applicable
(2) Situation of committed project of raised proceeds
□ Applicable√ Not applicable
(3)The changed project of raised proceeds
□ Applicable√ Not applicable
The Company has no project of raised proceeds changed in the Period
4. Main subsidiaries and joint-stock companies analysis
√ Applicable□ Not applicable
Main subsidiaries and joint-stock companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Industr||||||||
||||Main|||||||
|||y||Registered|||Operation|Operation||
|Name|Type||products or||Total assets|Net assets|||Net profit|
|||involv||capital|||revenue|profit||
||||service|||||||
|||ed||||||||
|Shenzhen||||||||||
||||Sales of|||||||
|Emmelle|Subsidiar|||||||||
|||Trade|bicycles and|2000000|64,235,616.34|3,939,517.32|83,395,111.04|2,030,215.54|1,621,391.39|
|Industry|y|||||||||
||||accessories|||||||
|Co., Ltd.||||||||||

5. Major project invested by non-raised funds
□ Applicable√ Not applicable
No major project invested by non-raised funds in Period.
VI. Prediction of business performance from January– September 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the CPA of thisyear’s
□ Applicable√ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of lastyear’s
√ Applicable□ Not applicable
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 reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On
12th,
Oct., 2012, Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. 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
Shenzhen Zhengyuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the Shenzhen IntermediatePeople’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen IntermediatePeople’s Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization. The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively and promote the reorganization work with all efforts.
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital reserve in particular
□ Applicable√ Not applicable
Previousyear’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual year
XI. In the report period, reception of research, communication and interview
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and|
|Time|Place|Way|Type|Reception||
||||||material provided|
|||Phone||The public|Restructure progress of the|
|Jan-Jun 2014|The Company||Individual|||
|||communication||shareholders|Company|

Section V. Important Events
I. Corporate governance
During the report period, in accordance with its actual situation, the Company has constantly improved the corporate governance structure of the company and strived to establish the modern enterprise system by strictly following the requirements of the Company Law, the Securities Law, and the Governance Standards for Listed Companies, and the normative documents. The Company also has operated and convoked the stockholders' meeting, the board meeting and the meeting of the board of directors by strictly following the relevant rules and procedures of the Articles of Association, and has maintained the interests of the company. The actual situation of the corporate governance structure meets requirements of the normative documents about the governance of listed companies issued by the China Securities Regulatory Commission.
Actual corporate governance of the Company shows no difference with the Company Law and relevant regulations of CSRC
II. Significant lawsuits and arbitrations of the Company
□Applicable√Not applicable
The Company has no significant lawsuits and arbitrations in reporting period
III. Question from media
□ Applicable√ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable√ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Assets acquisition
□ Applicable√ Not applicable
The Company did not purchased assets in the Period
2. Sales of assets
□ Applicable√ Not applicable
The Company did not sell assets in the Period
3. Business combination
□ Applicable√ Not applicable
The Company has no business combined in the Period
VI. Implementation of thecompany’s equity incentive and the effects
□ Applicable√ Not applicable
No equity incentive in reporting period
VII. Significant related transaction
1. Related transaction routine operations concerned
□ Applicable√ Not applicable
The Company has no related transaction with routine operations concerned occurred in the Period
2. Related transaction incurred by purchase or sales of assets
□ Applicable√ Not applicable
No related transaction incurred by purchase or sales of assets in Period
3. Related transaction from jointly investment outside
□ Applicable√ Not applicable
No related transaction from jointly investment outside occurred in Period
4. Contact of related credit and debt
√ Applicable□ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes□No
|||||||||
|-|-|-|-|-|-|-|-|
|||||Whether exist|Balance of|Amount of the||
||||||||Balance at|
|||||non-operation|period-begin|period||
||Related|Type of credit|Forming||||period-end (in|
|Related party||||al capital|(in 10|occurrence (in||
||relationship|and debt|reason||||10 thousand|
|||||occupying|thousand|10 thousand||
||||||||Yuan)|
||||||Yuan)|Yuan)||
|Shenzhen Guosheng||Debts of||||||
||The largest||Subsidiary|||||
|Energy Investment||related party||No|650|0|650|
||shareholder||borrow capital|||||
|Development Co., Ltd.||payable||||||

5. Other significant related transactions
□ Applicable√ Not applicable
The Company had no other significant related transactions in the reporting period
VIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
IX. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable√ Not applicable
The Company had no trusteeship in the reporting period.
(2) Contract
□ Applicable√ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□ Applicable√ Not applicable
The Company had no leasing in the reporting period.
2. Guarantee
□ Applicable√ Not applicable
The Company had no guarantee in Period.
(1) Guarantee outside against the regulation
□ Applicable√ Not applicable
No guarantee outside against the regulation in Period
3. Other material contracts
□ Applicable√ Not applicable
The Company had no other material contracts in the reporting period.
4. Other material transactions
□ Applicable√ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above5% shares of the Company in reporting period or occurred in the previous reporting period but continued to reporting period
□ Applicable√ Not applicable
The Company had no commitment made by the Company or shareholders holding above5% shares of the Company in reporting period or occurred in the previous reporting period but continued to reporting period.
XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes√ No
XII. Penalty and rectification
□ Applicable√ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable√ Not applicable
The Company has no delisting risks with laws and rules violated in Period
XIV. Explanation on other significant events
√ Applicable□ Not applicable
(1) Being approved by Shenzhen Stock Exchange, trading stock of the Company cancel the delisting risk warning since 14 May 2014
(2) The final settlement for payable enterprise income tax for year of 2013 has paid in the Period, that is 92.39 million Yuan
Section VI. Changes in Shares and Particulars about Shareholders I. Changes in shares
In share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Changes||Increase/Decrease in the Change (+, -)|||||After the Changes||
||||Newly-||Public|||||
|||Proporti||Bonus|||Subtot||Proportio|
||Amount||issued||reserve-conve|Others||Amount||
|||on||shares|||al||n|
||||shares||rted shares|||||
|I. Restricted shares|11,362|0.00%||||||11,362|0.00%|
|3、Other domestic shares|11,362|0.00%||||||11,362|0.00%|
|Domestic natural||||||||||
||11,362|0.00%||||||11,362|0.00%|
|person’s shares||||||||||
|II. Unrestricted shares|551,336,585|100.00%||||||551,336,585|100.00%|
|1. RMB Ordinary shares|302,976,018|54.95%||||||302,976,018|54.95%|
|2. Domestically listed||||||||||
||248,360,567|45.05%||||||248,360,567|45.05%|
|foreign shares||||||||||
|III. Total shares|551,347,947|100.00%||||||551,347,947|100.00%|

 Reasons for share changed
□ Applicable√ Not applicable
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer of share changed
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
Explanation on changes of total shares and shareholders structure as well as changes of structure of assets and liability
□ Applicable√ Not applicable
II. Number of shares and shares held
In Share
|||||
|-|-|-|-|
|||Total preference shareholders|0|
|Total common shareholders at||with voting rights recovered at||
||31,746|||
|period-end||end of reporting period (if||
|||applicable) (see Note 8)||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Particulars about shares held above 5% by shareholders or top ten shareholders|||||||||
||||||Amount of||Number of share||
|||Proportion|Number of|Changes in||Amount of|||
||Nature of||||restrict||pledged/frozen||
|Shareholders||of shares|shares held at|reporting||un-restrict|||
||shareholder||||shares||State of||
|||held|period-end|period||shares held||Amount|
||||||held||share||
|Shenzhen GuoshengEnergy InvestmentDevelopment Co.,Ltd.|Domesticnon-State-ownedlegal person|11.52%|63,508,747|0|0|63,508,747|||
|Zhuorun TechnologyCo., Ltd.|Foreign legalperson|5.91%|32,596,212|-7,097,610|0|32,596,212|||
|Zeng Ying|Domestic natureperson||6,342,717|0|0|6,342,717|||
|Specific account ofproperty dispositionfor bankruptcyenterprise of CBC|Domesticnon-State-ownedlegal person|0.97%|5,326,807|0|0|5,326,807|||
|COREPACIFIC-YAMAICHIINTERNATIONAL(H.K.) LIMITED|Foreign legalperson|0.94%|5,198,701|3,692,998|0|5,198,701|||
|Jingchao InvestmentCo., Ltd.|Foreign legalperson|0.84%|4,601,789|0|0|4,601,789|||
|Li Dongxuan|Domestic natureperson|0.83%|4,548,425||0|4,548,425|||
|Specific account ofproperty dispositionfor bankruptcyenterprise of CBC|Domesticnon-State-ownedlegal person|0.77%|4,230,337|0|0|4,230,337|||
|Li Huili|Domestic natureperson|0.71%|3,891,124|0|0|3,891,124|||
|Xu Hongbo|Domestic natureperson|0.52%|2,847,519|395,600|0|2,847,519|||
|Strategy investors or general corporate|||||||||
|becomes top 10 shareholders due to||N/A|||||||
|rights issued|||||||||
|||Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on behalf|||||||
|Explanation on associated relationship|||||||||
|||of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the|||||||
|among the aforesaid shareholders|||||||||
|||Company has no idea of whether other circulated shareholders belong to concerted action|||||||

|||||
|-|-|-|-|
||persons ruled in the Administration Norms for Information Disclosure of Change on|||
||Shareholding of Shareholders of Listed Companies.|||
|Particulars about the shares held by the top ten unrestricted shareholders||||
|||Type of shares||
|Shareholders|Amount of unrestricted shares held at period-end|||
|||Type|Amount|
|Shenzhen Guosheng Energy InvestmentDevelopment Co., Ltd.|63,508,747|||
|||RMB common shares|63,508,747|
|Zhuorun Technology Co., Ltd.|32,596,212|RMB common shares|32,596,212|
|Zeng Ying|6,342,717|Domestically listed||
||||6,342,717|
|||foreign shares||
|Specific account of property dispositionfor bankruptcy enterprise of CBC|5,326,807|||
|||RMB common shares|5,326,807|
|CORE PACIFIC-YAMAICHIINTERNATIONAL (H.K.) LIMITED|5,198,701|Domestically listed||
||||5,198,701|
|||foreign shares||
|Jingchao Investment Co., Ltd.|4,601,789|RMB common shares|4,601,789|
|Li Dongxuan|4,548,425|RMB common shares|4,548,425|
|Specific account of property dispositionfor bankruptcy enterprise of CBC|4,230,337|Domestically listed||
||||4,230,337|
|||foreign shares||
|Li Huili|3,891,124|Domestically listed||
||||3,891,124|
|||foreign shares||
|Xu Hongbo|2,847,519|Domestically listed||
||||2,847,519|
|||foreign shares||
|Expiation on associated relationship or|Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on behalf|||
|consistent actors within the top 10|of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the|||
|un-restrict shareholders and between|Company has no idea of whether other circulated shareholders belong to concerted action|||
|top 10 un-restrict shareholders and top|persons ruled in the Administration Norms for Information Disclosure of Change on|||
|10 shareholders|Shareholding of Shareholders of Listed Companies.|||
|Explanation on shareholders involving||||
||N/A|||
|margin business||||

Whether has a buy-back agreement dealing in reporting period
□Yes√No
The shareholders o f the Company had no buy-back agreement dealing in reporting period.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
□ Applicable√Not applicable
As far as the Company knows, there are no share holding increasing plan proposed or implemented in Period from shareholder of the Company and its concerted action person.
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable√ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable√ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable√ Not applicable
2. Preferred stock converted
□ Applicable√ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable√ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable√ Not applicable
Section VIII. Directors, Supervisors and Senior Executives I. Changes of shares held by directors, supervisors and senior executives
√ Applicable□ Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Increasing|Decreasing||Restricted|Restricted||
||||Shares|||Shares||||
|||||shares held|shares held||shares|shares|Restricted shares|
|||Working|held at|||held at||||
||Title|||in this|in this||awarded at|awarded in|awarded at period-end|
|Name||status|period-beg|||period-end||||
|||||period|period||period-beg|the period|(Share)|
||||in (Share)|||(Share)||||
|||||(Share)|(Share)||in (Share)|(Share)||
|Zheng||Currently||||||||
|Zhonghua|Supervisor||10,976|0|2,700|8,276|8,232|0|8,232|
|||in office||||||||
|n||||||||||
|Total|--|--|10,976|0|2,700|8,276|8,232|0|8,232|

 II. Changes of directors, supervisors and senior executives
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reason|
|||||The 7th session of supervisory committee expired and|
|Li Xiang|Convener of|Be elected|2014-06-27||
||supervisors|||elected the 8th session of supervisory committee|
|||||The 7th session of supervisory committee expired and|
|Li Jialin|Staff Supervisor|Be elected|2014-05-22||
|||||elected the 8th session of supervisory committee|
|||Leaving|||
|Xiao Yan|Convener of||2014-06-27|Leaving end-of-tour|
||supervisors|end-of-tour|||
|||Leaving|||
|Tao Hualiang|Staff Supervisor||2014-06-27|Leaving end-of-tour|
|||end-of-tour|||

Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|29,360,708.21|26,834,171.59|
|Settlement funds|||
|Lending funds|||
|Tradable financial assets|||
||9,814,204.40||
|Notes receivable|||
||2,207,762.11|7,060,251.28|
|Accounts receivable|||
||943,983.29|177,636.49|
|Prepayments|||
|Premium receivable|||
|Reinsurance accounts receivable|||
|Reinsurance contract reserve|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|560,467.78|107,395,429.69|
|Buying back the sale of financial assets|||
|Inventory|22,846,440.68|4,545,116.43|
|Non-current assets due within one year|||
|Other current assets|||
|Total current assets|65,733,566.47|146,012,605.48|

||||
|-|-|-|
|Non-current assets:|||
|Issuance of loans and advances|||
|Financial assets available for Sale|||
|Held-to-maturity investment|||
|Long-term receivables|||
|Long term equity investment|||
|Investment real estate|||
|Fixed asset|452,133.85|227,824.37|
|Project in progress|||
|Project materials|||
|Liquidation of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible asset|4,894,500.00|5,271,000.00|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenditure|||
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|5,346,633.85|5,498,824.37|
|Total Assets|71,080,200.32|151,511,429.85|
|Current Liabilities:|||
|Short-term borrowing|||
|Borrowing from the central bank|||
|Deposits and interbank deposit|||
|Borrowed capital|||
|Transaction financial liabilities|||
|Notes payable|||
||25,020,457.21|9,935,720.73|
|Accounts payable|||
|Account received in advance|6,027,223.64|3,627,323.31|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||
|Salary payable|1,421,254.92|1,516,624.17|
|Taxes payable|1,731,786.24|93,778,253.57|

||||
|-|-|-|
|Interest payable|||
|Dividend payable|||
|Other payables|26,819,638.25|34,954,734.89|
|Reinsurance payables|||
|Reserves for insurance contracts|||
|Agency securities trading|||
|Agency securities underwriting|||
|Non-current liabilities due within one|||
|year|||
|Other current liabilities|||
||61,020,360.26|143,812,656.67|
|Total current liabilities|||
|Non-current liabilities|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Special payables|||
|Accrued liabilities|||
|Deferred income tax liability|||
|Other non-current liability|||
|Total non-current liability|||
|Total liability|61,020,360.26|143,812,656.67|
|Owners’ equity (or Shareholder’s|||
|equity):|||
|Paid-in capital(share capital)|551,347,947.00|551,347,947.00|
|Capital surplus|627,819,910.12|627,819,910.12|
|Less: treasury stock|||
|Special reserve|||
|Surplus reserve|32,673,227.01|32,673,227.01|
|Reserve for general risks|||
|Retained profit|-1,202,963,099.27|-1,204,837,748.73|
|Converted difference in foreign|||
|currency Statements|||
|Total owner’s equity attributable to|||
||8,877,984.86|7,003,335.40|
|parent company|||
|Interest of minority shareholders|1,181,855.20|695,437.78|

||||
|-|-|-|
|Total owners’ equity (or shareholders|||
||10,059,840.06|7,698,773.18|
|equity)|||
|Total liabilities and owners’ equity (or|||
||71,080,200.32|151,511,429.85|
|shareholders equity)|||

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
2. Balance Sheet of Parent Company
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary fund|1,089,776.09|1,080,836.82|
|Tradable financial assets|||
|Notes receivable|||
|Accounts receivable|292,106.00|245,382.00|
|Prepayments|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|17,419,137.07|116,990,372.76|
|Inventory|||
|Non-current assets due within one year|||
|Other current assets|||
|Total current assets|18,801,019.16|118,316,591.58|
|Non-current assets:|||
|Financial assets available for Sale|||
|Held-to-maturity investment|||
|Long-term receivables|||
|Long term equity investment|10,379.73|10,379.73|
|Investment real estate|||
|Fixed assets|416,984.30|109,020.00|
|Project in progress|||
|Project materials|||
|Liquidation of fixed assets|||

||||
|-|-|-|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|4,894,500.00|5,271,000.00|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenditure|||
|Deferred income tax asset|||
|Other non-current assets|||
|Total non-current assets|5,321,864.03|5,390,399.73|
|Total assets|24,122,883.19|123,706,991.31|
|Current liabilities:|||
|Short-term borrowing|||
|Transaction financial liabilities|||
|Notes payable|||
|Accounts payable|||
|Account received in advance|||
|Salary payable|21,077.84|6,847.09|
|Taxes payable|-37,878.16|92,205,392.56|
|Interest payable|||
|Dividend payable|||
|Others payables|18,008,981.04|26,103,724.68|
|Non-current liabilities due within one|||
|year|||
|Other current liabilities|||
|Total current liabilities|17,992,180.72|118,315,964.33|
|Non- current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Special payables|||
|Accrued liabilities|||
|Deferred income tax liability|||
|Other non-current liability|||
|Total non-current liability|||

||||
|-|-|-|
|Total liabilities|17,992,180.72|118,315,964.33|
|Owners’ equity (or Shareholder’s|||
|equity):|||
|Paid-in capital(share capital)|551,347,947.00|551,347,947.00|
|Capital surplus|627,819,910.12|627,819,910.12|
|Less: treasury stock|||
|Special reserve|||
|Surplus reserve|32,673,227.01|32,673,227.01|
|Reserve for general risks|||
|Retained profit|-1,205,710,381.66|-1,206,450,057.15|
|Converted difference in foreign|||
|currency|||
|Total owners’ equity (or shareholders|||
||6,130,702.47|5,391,026.98|
|equity)|||
|Total liabilities and owners’ equity (or|||
||24,122,883.19|123,706,991.31|
|shareholders equity)|||

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
3. Consolidated Income Statements
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Item|Current Amount|Amount of the Previous Period|
|I. Total operation revenue|85,666,634.40|104,903,520.59|
|Including: Operating revenue|85,666,634.40|104,903,520.59|
|Interest income|||
|Earned premium|||
|Fee and commission income|||
|II Total Operating cost|87,395,185.64|134,225,562.75|
|Including: Operating costs|80,326,800.62|92,139,173.51|
|Interest costs|||
|Fee and commission costs|||
|Cash surrender|||
|Net compensation expenses|||

||||
|-|-|-|
|Net extraction reserves for insurance|||
|contracts|||
|Policy dividend payout|||
|Reinsurance expense|||
|Business tax and surcharge|245,931.44|185,939.59|
|Sales expenses|1,856,602.82|3,589,369.24|
|Administrative expenses|5,077,370.04|38,509,731.68|
|Financial expenses|-98,274.42|-198,651.27|
|Asset impairment losses|-13,244.86||
|Add: gains from changes of fair|||
|value (Loss is listed with ―-‖)|||
|Investment gain (Loss is listed|||
|with ―-‖)|||
|Including: Investment gains on|||
|affiliated Company and joint venture|||
|Exchange gains (Loss is listed|||
|with ―-‖)|||
|III. Operating profits (Loss is listed with|||
||-1,728,551.24|-29,322,042.16|
|―-‖)|||
|Add: Non-operating income|4,902,358.37|66,345.00|
|Less: Non-operating expenditure|23,054.00|25,290.00|
|Including: Disposal loss on non-current|||
|liability|||
|IV Total profits (Total loss is listed with|||
||3,150,753.13|-29,280,987.16|
|―-‖)|||
|Less: Income tax expenses|789,686.25||
|V. Net profit (Net loss is listed with ―-‖)|2,361,066.88|-29,280,987.16|
|Including: Net profit generated by|||
|combined party before merged|||
|Net profit attribute to owners of parent|||
||1,874,649.46|-29,283,608.20|
|company|||
|Minority interest|486,417.42|2,621.04|
|VI. Earnings per share(EPS)|--|--|
|(i) Basic Earnings per share(EPS)|0.0034|-0.0531|
|(ii) Diluted Earnings per share(EPS)|0.0034|-0.0531|
|VII. Other consolidated income|||

||||
|-|-|-|
|VIII. Total consolidated income|2,361,066.88|-29,280,987.16|
|Total consolidated income attributable|||
||1,874,649.46|-29,283,608.20|
|to owners of parent company|||
|Total consolidated income attributable|||
||486,417.42|2,621.04|
|to minority shareholders|||

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
4. Profit Statement of parent company
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Items|Current Amount|Amount of the Previous Period|
|I. Operation revenue|3,703,766.10|13,529,519.88|
|Less: Operating costs|2,536,032.31|4,562,602.46|
|Business tax and surcharge|192,196.65||
|Sales expenses|||
|Administrative expenses|4,731,814.61|37,950,216.66|
|Financial expenses|1,132.90|-102,659.42|
|Asset impairment losses|1,356.41||
|Add: gains from changes of fair|||
|value(Loss is listed with ―-‖)|||
|Investment gain(Loss is listed with|||
|―-‖)|||
|Including: Investment gains on|||
|affiliated Company and joint venture|||
|III. Operating profits (Loss is listed with|||
||-3,758,766.78|-28,880,639.82|
|―-‖)|||
|Add: Non-operating income|4,762,626.91|1,245.00|
|Less: Non-operating expenditure|17,174.00|25,290.00|
|Including: Disposal loss on|||
|non-current liability|||
|III. Total profit (Loss is listed with ―-‖)|986,686.13|-28,904,684.82|
|Less: Income tax expenses|247,010.64||
|IV. Net profit (net loss is listed with ―-‖)|739,675.49|-28,904,684.82|
|V. Earnings per share(EPS):|--|--|
|(i) Basic Earnings per share(EPS)|0.0013|-0.0524|
|(ii) Diluted Earnings per share(EPS)|0.0013|-0.0524|

||||
|-|-|-|
|VI. Other consolidated income|||
|VII. Total consolidated income|739,675.49|-28,904,684.82|

 Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
5. Consolidated Cash Flow Statement
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Items|Current Amount|Amount of the Previous Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|43,219,779.00|60,803,029.90|
|services|||
|Net increase of customer deposit and|||
|interbank deposit|||
|Net increase of loan from central bank|||
|Net increase of capital borrowed from|||
|other financial institution|||
|Cash received from original insurance|||
|contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||
|investment|||
|Net increase of disposal of transaction|||
|financial asset|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|||
|Other cash received concerning|||
||110,619,815.38|19,329,843.70|
|operating activities|||
|Subtotal of cash inflow arising from|||
||153,839,594.38|80,132,873.60|
|operating activities|||
|Cash paid for purchasing commodities|42,938,795.58|53,975,862.67|

||||
|-|-|-|
|and receiving labor service|||
|Net increase of customer loans and|||
|advances|||
|Net increase of deposits in central bank|||
|and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee slip|||
|Cash paid to/for staff and workers|5,398,978.85|35,436,172.27|
|Taxes paid|93,668,033.13|2,778,235.49|
|Other cash paid concerning operating|||
||9,087,945.93|8,499,083.25|
|activities|||
|Subtotal of cash outflow arising from|||
||151,093,753.49|100,689,353.68|
|operating activities|||
|Net cash flows arising from operating|||
||2,745,840.89|-20,556,480.08|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|100,500.00|32,000.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||100,500.00|32,000.00|
|activities|||
|Cash paid for purchasing fixed,|||
||319,804.27|4,429.06|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash paid for obtaining subsidiaries|||
|and other units|||

||||
|-|-|-|
|Other cash paid concerning investing|||
|activities|||
|Subtotal of cash outflow from investing|||
||319,804.27|4,429.06|
|activities|||
|Net cash flows arising from investing|||
||-219,304.27|27,570.94|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
|activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit|||
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning financing|||
|activities|||
|Subtotal of cash outflow from financing|||
|activities|||
|Net cash flows arising from financing|||
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||2,526,536.62|-20,528,909.14|
|equivalents|||
|Add: Balance of cash and cash|||
||26,834,171.59|52,395,360.86|
|equivalents at the period -begin|||

||||
|-|-|-|
|VI. Balance of cash and cash equivalents|||
||29,360,708.21|31,866,451.72|
|at the period -end|||

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
6. Cash Flow Statement of parent company
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
In RMB
||||
|-|-|-|
|Item|Current Amount|Amount of the Previous Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|||
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||116,130,748.61|18,804,524.65|
|operating activities|||
|Subtotal of cash inflow arising from|||
||116,130,748.61|18,804,524.65|
|operating activities|||
|Cash paid for purchasing commodities|||
|and receiving labor service|||
|Cash paid to/for staff and workers|3,769,818.64|32,536,140.33|
|Taxes paid|92,786,756.90|1,515,331.51|
|Other cash paid concerning operating|||
||19,248,933.80|8,097,395.44|
|activities|||
|Subtotal of cash outflow arising from|||
||115,805,509.34|42,148,867.28|
|operating activities|||
|Net cash flows arising from operating|||
||325,239.27|-23,344,342.63|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||

|||
|-|-|
|subsidiaries and other units||
|Other cash received concerning||
|investing activities||
|Subtotal of cash inflow from investing||
|activities||
|Cash paid for purchasing fixed,||
||316,300.00|
|intangible and other long-term assets||
|Cash paid for investment||
|Net cash paid for obtaining subsidiaries||
|and other units||
|Other cash paid concerning investing||
|activities||
|Subtotal of cash outflow from investing||
||316,300.00|
|activities||
|Net cash flows arising from investing||
||-316,300.00|
|activities||
|III. Cash flows arising from financing||
|activities||
|Cash received from absorbing||
|investment||
|Cash received from loans||
|Cash received from issuing bonds||
|Other cash received concerning||
|financing activities||
|Subtotal of cash inflow from financing||
|activities||
|Cash paid for settling debts||
|Cash paid for dividend and profit||
|distributing or interest paying||
|Other cash paid concerning financing||
|activities||
|Subtotal of cash outflow from financing||
|activities||
|Net cash flows arising from financing||
|activities||
|IV. Influence on cash and cash||
|equivalents due to fluctuation in||
|exchange rate||

||||
|-|-|-|
|V. Net increase of cash and cashequivalents|||
||8,939.27|-23,344,342.63|
|Add: Balance of cash and cashequivalents at the period -begin|||
||1,080,836.82|31,432,888.50|
|VI. Balance of cash and cash equivalentsat the period -end|||
||1,089,776.09|8,088,545.87|

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
7. Consolidated Statement on Changes of Owners' Equity
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
Current Amount
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Current Amount||||||||||
||Owners' equity attributable to the parent company||||||||||
||||||||||Interest of||
||Paid-in|||||Reserve||||Total|
|Item|||||||||||
||||Less:||||||minority||
||capital(s|Capital||Special|Surplus|for|Retaine|||owners’|
||||treasury|||||Other|sharehold||
||hare|surplus||reserve|reserve|general|d profit|||equity|
||||stock||||||ers||
||capital)|||||risks|||||
||||||||-1,204,8||||
||551,347|627,819,|||32,673,||||695,437.7|7,698,773.|
|I. Balance at the end of last year|||||||37,748.7||||
||,947.00|910.12|||227.01||||8|18|
||||||||3||||
|Add: Changes of accounting|||||||||||
|policy|||||||||||
|Error correction of previous|||||||||||
|period|||||||||||
|Others|||||||||||
||||||||-1,204,8||||
|II. Balance at the beginning of|551,347|627,819,|||32,673,||||695,437.7|7,698,773.|
||||||||37,748.7||||
|this year|,947.00|910.12|||227.01||||8|18|
||||||||3||||
|III. Increase/ Decrease in this|||||||1,874,64||486,417.4|2,361,066.|
|year (Decrease is listed with'"-")|||||||9.46||2|88|
||||||||1,874,64||486,417.4|2,361,066.|
|(i) Net profit|||||||||||
||||||||9.46||2|88|
|(ii) Other consolidated income|||||||||||
||||||||1,874,64||486,417.4|2,361,066.|
|Subtotal of (i)and (ii)|||||||||||
||||||||9.46||2|88|
|(III) Owners' devoted and|||||||||||
|decreased capital|||||||||||

||||||||
|-|-|-|-|-|-|-|
|1. Owners' devoted capital|||||||
|2. Amount calculated into|||||||
|owners' equity paid in shares|||||||
|3. Others|||||||
|(IV)Profit distribution|||||||
|1. Withdrawal of surplus|||||||
|reserves|||||||
|2. Withdrawal of general risk|||||||
|provisions|||||||
|3. Distribution for owners|||||||
|(shareholders)|||||||
|4. Others|||||||
|(V) Carrying forward internal|||||||
|owners' equity|||||||
|1. Capital reserves conversed to|||||||
|capital (share capital)|||||||
|2. Surplus reserves conversed to|||||||
|capital (share capital)|||||||
|3. Remedying loss with surplus|||||||
|reserve|||||||
|4. Others|||||||
|(VI) Special reserve|||||||
|1. Withdrawal in this period|||||||
|2. Usage in this period|||||||
|(VII) Other|||||||
|||||-1,202,9||10,059,840.06|
|IV. Balance at the end of the|551,347|627,819,|32,673,||1,181,855||
|||||63,099.2|||
|report period|,947.00|910.12|227.01||.20||
|||||7|||

Amount in last year
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||||
||Owners’ equity attributable to the parent company||||||||||
||||||||||Interest of||
||Paid-in|||||Reserve||||Total|
|Items|||Less:||||||minority||
||capital(s|Capital||Special|Surplus|for|Retaine|||owners’|
||||treasury|||||Other|sharehold||
||hare|surplus||reserve|reserve|general|d profit|||equity|
||||stock||||||ers||
||capital)|||||risks|||||
||||||||-2,780,0||||
||551,347|486,589,|||32,673,|||||-1,709,390,|
|I. Balance at the end of last year|||||||61,643.6||60,572.65||
||,947.00|213.20|||227.01|||||683.76|
||||||||2||||

||||||||
|-|-|-|-|-|-|-|
|Add: retroactive adjustment|||||||
|arising from enterprise|||||||
|consolidation under the same|||||||
|control|||||||
|Add: Changes of accounting|||||||
|policy|||||||
|Error correction of previous|||||||
|period|||||||
|Other|||||||
|||||-2,780,0|||
|II. Balance at the beginning of|551,347|486,589,|32,673,|||-1,709,390,|
|||||61,643.6|60,572.65||
|this year|,947.00|213.20|227.01|||683.76|
|||||2|||
|III. Increase/ Decrease in this|||||||
|||141,230,||1,575,22|634,865.1|1,717,089,|
|year (Decrease is listed|||||||
|||696.92||3,894.89|3|456.94|
|with’‖-‖)|||||||
|||||1,575,22|634,865.1|1,575,858,|
|(i) Net profit|||||||
|||||3,894.89|3|760.02|
|(II) Other consolidated income|||||||
|||||1,575,22|634,865.1|1,575,858,|
|Subtotal of (i)and (ii)|||||||
|||||3,894.89|3|760.02|
|(III) Owners’ devoted and||141,230,||||141,230,69|
|decreased capital||696.92||||6.92|
|1. Owners’ devoted capital|||||||
|2. Amount calculated into|||||||
|owners’ equity paid in shares|||||||
|||141,230,||||141,230,69|
|3. Others|||||||
|||696.92||||6.92|
|(IV)Profit distribution|||||||
|1. Withdrawal of surplus|||||||
|reserves|||||||
|2. Withdrawal of general risk|||||||
|provisions|||||||
|3. Distribution for owners|||||||
|(shareholders)|||||||
|4. Others|||||||
|(V) Carrying forward internal|||||||
|owners’ equity|||||||
|1. Capital reserves conversed to|||||||

||||||||
|-|-|-|-|-|-|-|
|capital (share capital)|||||||
|2. Surplus reserves conversed tocapital (share capital)|||||||
|3. Remedying loss with surplusreserve|||||||
|4. Others|||||||
|( VI) Special reserve|||||||
|1. Withdrawal in this period|||||||
|2. Usage in this period|||||||
|(VII) Other|||||||
|||||-1,204,8|||
|IV. Balance at the end of the|551,347|627,819,|32,673,||695,437.78|7,698,773.|
|||||37,748.7|||
|report period|,947.00|910.12|227.01|||18|
|||||3|||

Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
8. Statement on Changes of Owners' Equity of Parent Company
Prepared by SHENZHEN CHINA BICYCLE COMPANY (HOLDINGS) LIMITED
Current Amount
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current Amount||||||||
||Paid-incapital(share capital)||Less:|||Reserve for||Total|
|Items||Capital||Special|Surplus||Retained||
||||treasury|||general||owners’|
|||surplus||reserve|reserve||profit||
||||stock|||risks||equity|
||551,347,947.00|627,819,91|||32,673,227||-1,206,450,|5,391,026.|
|I. Balance at the end of last year|||||||||
|||0.12|||.01||057.15|98|
|Add: Changes of accounting|||||||||
|policy|||||||||
|Error correction of previous|||||||||
|period|||||||||
|Other|||||||||
|II. Balance at the beginning of|551,347,94|627,819,91|||32,673,227||-1,206,450,|5,391,026.|
|this year|7.00|0.12|||.01||057.15|98|
|III. Increase/ Decrease in this|||||||||
||||||||739,675.49|739,675.49|
|year (Decrease is listed with’‖-‖)|||||||||
|(i) Net profit|||||||739,675.49|739,675.49|
|(II) Other consolidated income|||||||||
|Subtotal of (i)and (ii)|||||||739,675.49|739,675.49|

|||||||
|-|-|-|-|-|-|
|(III) Owners’ devoted and||||||
|decreased capital||||||
|1. Owners’ devoted capital||||||
|2. Amount calculated into||||||
|owners’ equity paid in shares||||||
|3. Others||||||
|(IV)Profit distribution||||||
|1. Withdrawal of surplus reserves||||||
|2. Withdrawal of general risk||||||
|provisions||||||
|3. Distribution for owners||||||
|(shareholders)||||||
|4. Others||||||
|(V) Carrying forward internal||||||
|owners’ equity||||||
|1. Capital reserves conversed to||||||
|capital (share capital)||||||
|2. Surplus reserves conversed to||||||
|capital (share capital)||||||
|3. Remedying loss with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||
|1. Withdrawal in this period||||||
|2. Usage in this period||||||
|(VII) Other||||||
|IV. Balance at the end of the|551,347,94|627,819,91|32,673,227|-1,205,710,|6,130,702.47|
|report period|7.00|0.12|.01|381.66||

 Amount in last year
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in last yea||||||||
||Paid-in||Less:|||Reserve for||Total|
|Item||Capital||Special|Surplus||Retained||
||capital(sha||treasury|||general||owners’|
|||surplus||reserve|reserve||profit||
||re capital)||stock|||risks||equity|
||551,347,94|486,589,21|||32,673,227||-2,707,593,|-1,636,983,|
|I. Balance at the end of last year|||||||||
||7.00|3.20|||.01||648.39|261.18|
|Add: Changes of accounting|||||||||

|||||||
|-|-|-|-|-|-|
|policy||||||
|Error correction of previous||||||
|period||||||
|Other||||||
|II. Balance at the beginning of|551,347,94|486,589,21|32,673,227|-2,707,593,|-1,636,983,|
|this year|7.00|3.20|.01|648.39|261.18|
|III. Increase/ Decrease in this year||141,230,69||1,501,143,|1,642,374,|
|(Decrease is listed with’‖-‖)||6.92||591.24|288.16|
|||||1,501,143,|1,501,143,|
|(i) Net profit||||||
|||||591.24|591.24|
|(II) Other consolidated income||||||
|||||1,501,143,|1,501,143,|
|Subtotal of (i)and (ii)||||||
|||||591.24|591.24|
|(III) Owners’ devoted and||141,230,69|||141,230,69|
|decreased capital||6.92|||6.92|
|1. Owners’ devoted capital||||||
|2. Amount calculated into||||||
|owners’ equity paid in shares||||||
|||141,230,69|||141,230,69|
|3. Others||||||
|||6.92|||6.92|
|(IV)Profit distribution||||||
|1. Withdrawal of surplus reserves||||||
|2. Withdrawal of general risk||||||
|provisions||||||
|3. Distribution for owners||||||
|(shareholders)||||||
|4. Others||||||
|(V) Carrying forward internal||||||
|owners’ equity||||||
|1. Capital reserves conversed to||||||
|capital (share capital)||||||
|2. Surplus reserves conversed to||||||
|capital (share capital)||||||
|3. Remedying loss with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||

|||||||
|-|-|-|-|-|-|
|1. Withdrawal in this period||||||
|2. Usage in this period||||||
|(VII) Other||||||
|IV. Balance at the end of the|551,347,94|627,819,91|32,673,227|-1,206,450,|5,391,026.|
|report period|7.00|0.12|.01|057.15|98|

 Legal Representative: Luo Guiyou Person in Charge of Accounting: Li Hai
Person in Charge of Accounting Department: Sun Longlong
III. Company Profile
(I)Company History
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] with the registered capital of RMB551, 347,947.00.
(II) Business Scope and Operation
The Company belongs to the machinery manufacture industry and mainly engages in the production and assembly of various bicycles and spare parts, components, parts, mechanical product, sport machinery, fine chemicals, carbon fiber composites material, household electrical appliance and affiliated components (products management by license excluded).
The Company is specialized in making the middle-top rank bicycles, the main brands are EMMELLE and various electrical bicycles.
The majority of its products were previously exported, however, the sales volume sharply declined in recent years because of the antidumping litigation. Hence, the Company commences on the debt reorganization and makes greater efforts to develop and research the new products, and creates a range of electrical bicycles to occupy the domestic market.
The Company offering accumulative shares of 551,347,947 shares in total up to 30 June 2014.
IV. Main Accounting Policy, Accounting Estimate and Errors
1. Compilation Basis of Financial Statement
The Company proceed on continue operating as a premise, according to the actual occurred transactions and events,
based on Accounting Standard forEnterprise—Basic issued by Financial Department on 15 February 2006 and
―Item38‖-Details of Accounting Standard, and Application Guide of Accounting Standard for Enterprise issued
subsequently, the Accounting Standard forEnterprise—Explanation and other relevant regulations to prepare financial statements.
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 historical cost.
2. Announcement for Following the Enterprise Accounting Standards
The financial statement complied by the Company pursuant to the foresaid compilation basis truly and fully reflects such related information as financial status, operation achievement and cash flows.
3. Accounting Period
The company adopts Gregorian calendar as accounting period, namely form each 1 January to 31 December. 4. Standard Accounting Currency
The Company adopts Renminbi as the standard accounting currency.
5. Accounting Treatment Method for Business Combinations
(1) The business combination under the same control
The Company conducts accounting treatment for the business combination under the same control under equity method. The assets and liabilities that acquired by the acquirer in a business combination shall be measured on the basis of their original carrying amount in the acquiree on the acquisition date, except for the necessary adjustment made for different accounting policies. As for the difference between the carrying value of the combination consideration (or the total par value of the shares issued) and the carrying value of the net assets acquired through the business combination is used to adjust the capital reserve. In case that the capital reserve is insufficient to off set, then retained earnings shall be adjusted.
The intermediate expenses occurred by the Company as combining party for the business combination (including the expenses for audit, legal services, appraisal consultant and other related administrative expenses), shall be recorded into the profits and losses at the current period. Bonds issued for business combination or fees or commissions paid for assuming other liabilities shall be recorded in the initial measurement amount of the bonds issued and other liabilities. Fees or commissions occurred by issuance of equity securities shall be used to reduce the premium income of equity securities. In case that the premium income is insufficient to offset, then retained earnings shall be off set.
(2) The business combination not under the same control
The Company conducts accounting treatment for the business combination not under the same control under purchase method. The combination cost represents the fair value of the cash or non-cash assets paid, liabilities assumed and equity securities issued by the Company for acquiring the control over the acquiree. The intermediate expenses occurred by the Company as acquirer for the business combination (including the expenses for audit, legal services, appraisal consultant and other related administrative expenses), shall be recorded into the profits and losses
at the current period. The transaction expense of the equity securities or debt securities issued by the Company as combination consideration shall be recorded in the initial recognition amount of equity securities or debt securities. The combination cost confirmed as at the acquisition date shall be deemed as the initial investment cost of the long term equity investment acquired from the business combination not under the same control. The Company realizes and measures the identified assets and liabilities acquired from the combination not under the same control at their fair value as of the acquisition date. If the combination cost is greater than the fair value of the net identifiable assets of the acquiree acquired through combination, then the relevant difference shall be confirmed as goodwill. If the combination cost is less than such fair value, then the relevant difference shall be recorded in current profits and losses after review.
6. Relevant specific accounting policy for equity disposal on step-by-step basis to lose control
(1) A principle of judgment of “Package Deal”
Nil
(2) Accounting method for “Package Deal”
Nil
(3) Accounting method for Non “Package Deal”
Nil
7. Preparation method of consolidated financial statement
(1)Preparation method of consolidated financial statement
The consolidated financial statements are prepared by the Company based on the individual financial statement of the Company and subsidiaries by reference to other related information after adjustment to the long term equity investments of the subsidiaries at equity method. When preparing consolidated financial statements, the Company makes necessary adjustments to the financial statements of subsidiaries which have different accounting policies and accounting periods according to the unified requirements of the Company. The internal transactions or issues and internal liabilities between the subsidiaries within consolidation scope are written off. The shareholders equity of subsidiaries not attributable to the parents shall be separately listed under the item of shareholder equity as minority equity in consolidated financial statement. Where the current losses shared by minority shareholders of subsidiary exceed the owners equity of such subsidiary shared by minority shareholders as at the year begin, the balance shall be used to off set minority equity.
(2)Disclosure of related accounting method for buy-and-resell or sell-and-repurchase of equities in the same subsidiary within two successive accounting years
As for the subsidiaries increased through business combination under the same control during the reporting period, the Company consolidates such subsidiaries from the very beginning for reporting of financial statement to the end of the reporting period. As for the subsidiaries increased through business combination not under the same control during the reporting period, the Company consolidates such subsidiaries from the acquisition date to the end of the reporting period. As for the subsidiaries reduced due to disposal during the reporting period, the Company stops consolidation of such subsidiaries since the disposal date.
8. Determination standards for cash and cash equivalents
When preparing cash flow statement, the Company determines such investments with the following four conditions including short terms (matured within 3 months since the acquisition date), high liquidity, easy to convert to cash with known amount as well as minor value change risks as cash equivalents.
9. Foreign currency business and foreign currency statement translation
(1)Foreign currency business
The foreign currency business shall be translated to the functional currency amount at the spot exchange rate on the transaction date.
As at the balance sheet date, items denominated in foreign currency are translated under the spot rate of the balance sheet date or exchange rate approximate to the spot rate. The translation differences arising from the difference between the spot rate of the balance sheet date and the spot rate of the initial realization date or the previous balance sheet date is recorded in finance expense; foreign non-monetary items measured at historical cost are still translated at the spot rate of the transaction date; foreign non-monetary items measured at fair value are translated at the spot rate of the date when fair value is determined. The difference between the functional currency amount after translation and the original functional currency amount is recorded in current profits and losses as income from change of fair value, while the translation differences related to foreign non-monetary items available for sale shall be recorded in capital reserve.
(2) Foreign currency statement translation
When translating the foreign currency financial statements of the overseas subsidiaries by the Company, the assets and liabilities items in the balance sheet are translated at the spot rate of the balance sheet date. As forshareholders’ equity items, items are translated at the spot rate of the occurrence date other than the item of―undistributedprofit‖; in income statement, income and expense items are translated at the spot rate of the transaction occurrence date or the exchange rate approximate to the spot rate; in cash flow statement, all items are translated at the spot rate of the cash flow occurrence date or the exchange rate approximate to the spot rate. The affect amount on cash from change of exchange rate is used as an adjustment item which is separately listed in the cash flow statement as―affect of cash and cash equivalents from change of exchangerate‖.
Since foreign currency financial statement translation would occur differences, such differences are separately listed in theshareholders’ equity in consolidated balance sheet as―foreign currency statement translationdifference‖.
10. Financial instruments
Financial instrument represent such contract pursuant to which financial assets are formed for an enterprise and financial liabilities or equity instruments are formed for other entities.
(1) Classification of financial instrument
Financial assets and financial liabilities of the Company are divided into the following 5 groups at the initial recognition: financial assets and financial liabilities at fair value through current profits and losses, held-to-maturity investment, account receivables, financial assets available for sale and other financial liabilities.
(2) Realization basis and measurement method
(1) Realization and de-realization of financial assets and financial liabilities
The Company realizes financial assets or financial liabilities when it becomes a party to financial instrument contract.
Financial assets are de-realized when any of the following conditions is satisfied:
① Contract right to receive cash flow from such financial assets terminates;
② Such financial asset has been transferred and complies with the derealization condition in respect of financial assets transfer.
Where the prevailing obligations of the financial liabilities are released in whole or in part, the financial liabilities shall be de-realized or only part of it.
(2) Measurement for financial assets/liability
Financial assets and financial liabilities are measured at fair value at initial recognition. As for financial assets and financial liabilities at fair value through current profits and losses, the related transaction expenses are recorded in current profits and losses directly, and the related transaction expenses of other financial assets and financial liabilities are recorded in their initial recognition amounts.
①financial assets and financial liabilities at fair value through current profits and losses
Financial assets and financial liabilities at fair value through current profits and losses comprise of transactional financial assets or financial liabilities and those which are directly designated as financial assets and financial liabilities at fair value through current profits and losses. transactional financial assets mainly represent the stocks, bonds, funds and derivatives not use as effective hedge instrument held for disposal in a short term or financial liabilities assumed due to recent repurchase. Those which are directly designated as financial assets and financial liabilities at fair value through current profits and losses are mainly designated by the Company based on the requirements for risk management and strategy investment.
This kind of financial assets and financial liabilities are subsequently measured at fair value. In addition to be used as effective hedge instruments, all realized and unrealized profits and losses of this kind of financial assets and financial liabilities are recorded in current profits and losses.
②held-to-maturity investment
Held-to-maturity investment represents the non derivative financial assets such as fixed rate national bunds or floating rate corporate bunds which have fixed expiration date, fixed or determinable recoverable amount and for which the Company has definite plan and ability to hold until maturity.
During the holding period, the Company measures the held-to-maturity investments at effective interest method under amortized cost. Gains or losses arising from impairment, amortization or derealization of held-to-maturity investment shall be recorded in current profits and losses. When disposing held-to-maturity investment, the difference between the amount received from such disposal and the carrying value of such investment shall be recorded in investment income.
③account receivables
Account receivables represent thecreditor’s right such as account receivables formed from sales of goods and provision of labor services, including account receivables, other receivables and long term receivables, etc. Account receivables are initially measured at the contract or agreement amount receivable from the purchaser, and are measured at the effective interest method under amortized cost during the holding period. When recovered or disposed, the difference between the amount received and the carrying value of the account receivables shall be recorded in current profit and loss.
④financial assets available for sale
Financial assets available for sale represent the non-derivative financial assets designated as available for sale at initial recognition and those financial assets other than the aforesaid three kinds of financial assets. As for this kind of financial assets, the Company conducts subsequent measurement at fair value, whose depreciation and premium is amortized at effective interest method and which is realized as interest income. Except for impairment loss and exchange difference of foreign monetary financial assets which are realized as current profit and loss, change of fair value of financial assets available for sale shall be realized as a separate part of capital reserve until such financial assets are de-realized or impaired, and the accumulative gains or losses realized in capital reserve previously shall be transferred to current profit and loss. Dividends or interest income relate to financial assets available for sale shall be recorded in current profit and loss
⑤other financial liabilities
Other financial liabilities represent those which are not grouped at fair value through profit and loss.
The Company measures other liabilities at amortized cost or cost. Gains or losses arising from other financial liabilities upon amortization and derealization shall be recorded in current profit and loss.
(3) Realization basis and measurement method for transfer of financial assets
①The Company would de-realizes such financial assets in case that it transfers nearly all the risks and remunerations entitled to the ownership of the financial assets to the transferee or it neither transfer nor retain nearly all the risks and remunerations entitled to the ownership of the financial assets while gives up the control over such financial assets.
②If the derealization conditions are met in respect of whole transfer of financial assets, then the difference between the followings shall be recorded in current profit and loss:
A. Carrying value of the assets transferred;
B. The sum between the considerations received for transfer and accumulative fair value change which shall be recorded inowners’ equity directly.
③If the derealization conditions are met in respect of transfer of part of financial assets, the whole carrying value of the assets transferred shall be allocated to the realized part and de-realized part based on the respective fair values. And the differences between the two amounts shall be recorded in current profit and loss:
A. Carrying value of the de-realized part;
B. The sum between the consideration for the de-realized part and the accumulative fair value change corresponding to the de-realized part which was previously recorded inowners’ equity directly.
④If transfer of financial assetsdon’t meet condition for de-realization, the financial assets shall be continually realized. The consideration received shall be confirmed as financial liabilities.
⑤as for the transfer of financial assets at constant involvement method, the Company realizes financial assets and meanwhile financial liabilities based on the degree of the involvement.
(4) Recognition condition for termination of financial liability
Only when present obligations under financial liability have been released entirely or partly, could cease recognition of such financial liability or part thereof.
(5) Determination of fair value of financial assets and financial liabilities
①fair value of financial assets or financial liabilities which have active market is determined based on the quotation in the active market;
②as for financial instruments which have no active market, the Company determines its fair value by evaluation technology.
(6) Impairment test and method for impairment provision for financial assets (excluding account receivables)
The Company reviews the carrying value of financial assets (excluding account receivables) as at balance sheet date. If there is objective evidence showing impairment occurs, it shall provide impairment reserve.
①held-to-maturity investment
Impairment losses are calculated based on the difference between the carrying value and the present value of predicted future cash flow. For details, please refer to the measurement treatment for impairment losses of account receivables.
If there is objective evidence showing the value of financial assets has been recovered which is related objectively to the issues occurred after recognition of such losses (such as enhancement of the credit rating of debtor), the impairment losses previously realized shall be written back and recorded in current profit and losses. However, the
carrying value after such written-back shall not exceed the amortized cost of the financial assets as at the written-back date assuming no impairment reserve is provided.
②financial assets available for sale
If there is objective evidence showing fair value of financial assets available for sale decreases greatly, and it is predicted that the decline trend is not temporary, the financial assets is deemed to be impaired and impairment loss shall be realized. Where the fair value of single financial assets available for sales drops significantly or not contemporarily, the financial assets available for sale is deemed to be impaired and provision for impairment loss, the impairment loss shall be realized. Drops significantly means the fair value less than50% of the cost price, and with over one-year continued; drops not contemporarily means the fair value less than80% of the cost price with over three-year continued. If financial assets available for sale experience impairment, the Company shall take out the accumulative losses arising from decrease of fair value which was directly recorded inowners’ equity previously to record in impairment losses when realizing impairment losses; The accumulative losses taken out equal to the initial acquisition cost of the financial assets available for sale less the principal recovered and amortized amount, prevailing fair value and impairment losses previously recorded in profit and loss.
As for the debt instruments for which impairment losses have been realized, if its fair value increases in subsequent accounting periods which is objectively related to the issues occurred after the realization of previous impairment losses, the previously realized impairment losses shall be written back and recorded in current profits and losses. The impairment losses occurred by investment of equity instruments available for sale shall be written back through equity while not through profit and losses if the value of such equity instrument increases.
Recognition standards for vary impairment of financial assets available for sale
①held-to-maturity investment
Impairment losses are calculated based on the difference between the carrying value and the present value of predicted future cash flow. For details, please refer to the measurement treatment for impairment losses of account receivables.
If there is objective evidence showing the value of financial assets has been recovered which is related objectively to the issues occurred after recognition of such losses (such as enhancement of the credit rating of debtor), the impairment losses previously realized shall be written back and recorded in current profit and losses. However, the carrying value after such written-back shall not exceed the amortized cost of the financial assets as at the written-back date assuming no impairment reserve is provided.
②financial assets available for sale
If there is objective evidence showing fair value of financial assets available for sale decreases greatly, and it is predicted that the decline trend is not temporary, the financial assets is deemed to be impaired and impairment loss shall be realized. Where the fair value of single financial assets available for sales drops significantly or not contemporarily, the financial assets available for sale is deemed to be impaired and provision for impairment loss, the impairment loss shall be realized. Drops significantly means the fair value less than50% of the cost price, and
with over one-year continued; drops not contemporarily means the fair value less than80% of the cost price with over three-year continued. If financial assets available for sale experience impairment, the Company shall take out the accumulative losses arising from decrease of fair value which was directly recorded inowners’ equity previously to record in impairment losses when realizing impairment losses; the accumulative losses taken out equal to the initial acquisition cost of the financial assets available for sale less the principal recovered and amortized amount, prevailing fair value and impairment losses previously recorded in profit and loss.
As for the debt instruments for which impairment losses have been realized, if its fair value increases in subsequent accounting periods which is objectively related to the issues occurred after the realization of previous impairment losses, the previously realized impairment losses shall be written back and recorded in current profits and losses. The impairment losses occurred by investment of equity instruments available for sale shall be written back through equity while not through profit and losses if the value of such equity instrument increases.
(7)As for reclassification of un-matured held-to-maturity investments into financial assets available for sale, explain the holding purposes or references for change of ability
Nil
11. Recognition standards and accrual method for bad debt provision for accounts receivable
Account receivables including receivables and other receivables
(1) Bad debt provision for accounts receivable with single major amount
|||
|-|-|
||Standards for the determination on account receivable with|
||single significant amount based on business scale, business|
|Determine basis or amount standards for Single Significant Amount|nature and settlement status of the clients:|
||The account receivable over RMB 5 million(including RMB 5|
||million) at period-end|
||An impairment test shall be made on the financial assets with|
||significant single amounts. The impairment-related losses|
|Withdrawal method on single significant amount and with bad debt||
||shall be recognized to prepare the provisions for bad debts|
|provision accrued for single item||
||according to the balance between the future present value and|
||the book value.|

(2) Bad debt provision for account receivable withdrawal by combination:
||||
|-|-|-|
||Methods on withdrawal of||
|Combination|bad debt provision based on|Basis for combination recognized|
||combination||
|Age group—account receivable||determined the impairment losses and bad debt provision accrued|
|with same book age owns similar|Age analysis method|by age and regulated withdrawal proportion of the account|
|characteristic in credit risk||receivable|

Adopt age analysis method for bad debt provision withdrawal in combination:
√Applicable□ Not applicable
||||
|-|-|-|
|Age|Accrued ratio for account receivable|Accrued ratio for other account receivable|
|Within I year (1 year included)|0.30%|0.30%|

||||
|-|-|-|
|1－2 years|0.30%|0.30%|
|2－3 years|0.30%|0.30%|
|Over 3 years|100.00%|100.00%|

 In combination, withdrawal proportion of bad debt provision based on balance proportion:
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□Applicable√ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item:
|||
|-|-|
|Reasons of withdrawal bad debt provision for||
||Clearly evidence shows that the account hard to recover|
|single item||
||Recognized impairment loss and accrued the bad debt provision according to the|
|Withdrawal method for bad debt provision||
||balance between future cash flow on account receivable and its book value|

12. Inventory
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods on hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2)Valuing of the delivered inventory
Valuation methods: Weighted average
Adopts actual cost for vary inventory obtained and weighted average method for the issued inventory.
(3) Confirmation of net realizable value for the inventory and provision for inventory impairment
The net realizable value for the inventory refers to, in the course of general operation, the estimated amount with deducting the estimated cost, estimated sales expense and related taxes from the estimated sales price.
Provision for inventory impairment: Based on making an overall check of the inventory at the middle and end of the year, the Company measures the whole or partial out-of-dated inventory or the inventory with extremely lower price according to the cost or the net realizable value, whichever is lower; and withdraws the impairment provisions for the single inventory according to the balance between the net realizable value and the cost and recorded into the profits and losses of current period. In addition to the holding purpose and the price and cost fluctuation as of the balance sheet date, the Company shall take into the future event account when confirming the net realizable value. (4)Inventory system for inventory
Inventory system: perpetual inventory system
In addition to the periodic inventory system for the products, the Company adopts the perpetual inventory system
for other inventories.
(5) Amortization method for the low-value consumables and wrappage
Low-value consumables
Amortization method: one-off amortization method
The Company adopts one-off amortization method to amortize the low-value consumables.
Wrappage
Amortization method: one-off amortization method
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
13. Long-term equity investment
(1)Determination of investment cost
①long term equity investment acquired through business combination under the same control: As for the long term equity investment acquired through business combination under the same control, share of the carrying value of net assets of the acquiree as at the combination date adjusted according to the accounting policies of the Company is deemed as the initial investment cost.②long term equity investment acquired through business combination not under the same control: As for the long term equity investment acquired through business combination not under the same control, combination cost determined on the acquisition date shall be deemed as initial investment cost. In case that business combination not under the same control is realized through several transactions step by step, the sum between the carrying value of the equity investment held in the acquiree before the acquisition date and the new investment cost as at the acquisition date shall be deemed as initial investment cost.③long term equity investment acquired by other means: As for the long term equity investment by cash payment, the purchase amount actually paid shall be deemed as initial investment cost. As for the long term equity investment by issuance of equity securities, the fair value of the equity securities issued (excluding the declared while not granted cash dividends or profits received from investee) shall be deemed as initial investment cost. As for the long term equity investment made by investor, the value as agreed by investment contract or agreement shall be deemed as initial investment cost, provided that the value as agreed by contract or agreement shall be fair. With the preceding conditions that non-monetary assets exchange has business nature and the fair value of assets exchanged in or out can be measured reliably, the initial investment cost of the long term equity investment acquired through non-monetary assets exchange is determined based on the fair value of the assets exchanged out, unless there is definite evidence showing the fair value of the assets exchanged in is more reliable. Non-monetary assets exchange not satisfying such preceding conditions, the carrying value of assets exchanged out and relevant tax payables are deemed as initial investment cost of the long term equity investment acquired. As for long term equity investment acquired through debt reorganization, its initial investment cost is determined based on fair value.
(2)Subsequent reckoning as well as profits and loss determination method
Investments in subsidiaries and long term equity investment in investee which the Company has no common control or significant influences and no quotation in active market and for which the fair valuecan’t be measured reliably are calculated at cost method. Long term equity investment in investee which the Company has common control or significant influences is calculated at equity method.
When calculating long term equity investment at equity method:
① If the initial investment cost of long term equity investment is greater than the share of fair value of the net identifiable assets of investee upon investment, the initial investment cost of long term equity investment shall not be adjusted; If the initial investment cost of long term equity investment is lesser than the share of fair value of the net identifiable assets of investee upon investment, the difference shall be recorded in current profit and loss and meanwhile cost of long term equity investment shall be adjusted.
② Upon acquisition of long term equity investment, the Company shall confirm investment profit or loss and adjust the carrying value of long term equity investment based on the proportion of the net profit and loss realized by the investee it shall share or assume. Confirmation for the proportion of the net profit and loss realized by the investee it shall share or assume is based on the fair value of the various identifiable assets of the investee upon acquisition of the investment with offset of the unrealized profit and loss of the internal transactions with associates and joint ventures attributable to the Company based on its shareholding proportion (if the unrealized internal transaction loss belongs to assets impairment loss, it shall confirm in full) and adjustment to the net profit of the investee under the accounting policies and accounting periods of the Company.
③confirmation of net loss in investee shall be within the limit of zero of the carrying value of long term equity investment and other long term equity which substantially constitutes net investment in investee, while except for the obligations to assume additional losses as agreed in contract or agreement. If investee realizes net profit in future, the Company would resume confirmation of income shares after the compensation of unrealized loss shares with its income shares.
④carrying value of long term equity investment shall be offset accordingly with the attributable profit or cash dividends declared by investee.
⑤as for other changes inowners’ equity (other than net profit and loss) of the investee, the Company calculates the part it should share or assume according to the shareholding proportion provided that such proportion remains unchanged, adjusts carrying value of the long term equity investment and increases or decreases capital reserve accordingly.
If the investee is still an associate or joint venture of the Company after reduction of the shareholding proportion, the Company will continue to calculate the remaining investment at equity method, and carry forward the gains or losses previously realized in other comprehensive income (capital reserve) to current profit and loss at the same proportion as it disposes the investment.
If the investee is still an associate or joint venture of the Company after increase of the shareholding proportion, the Company will continue to calculate the investment at equity method under the new shareholding proportion. On the new investment date, the difference between the new investment cost and the share of fair value of net identifiable assets of investee as calculated under the new shareholding proportion shall be treated according to the aforesaid principle; the difference between the original carrying value of the long term equity investment upon acquisition of new investment and the share of fair value of net identifiable assets of investee as calculated at the shareholding proportion (namely the shareholding proportion after investment increase less the new additional shareholding proportion) shall be used to adjust the carrying value of long term equity investment and capital reserve.
(3)The basis for the co-control over and material influence on the invested unit
① Judgment for common control
Common control means any joint venture party can not control the production and operation of the joint venture separately, and decision involving the basic operation activity of the joint venture requires unanimous consent from all the joint venture parties.
② Judgment for significant influence
Significant influences represent an entity is entitled to the decision making in respect of the financial and operational policies of an enterprise, while it is not entitled to control the establishment of these policies separately or with other parties. In case that the Company holds, directly or indirectly by subsidiary, more than20%(20% included) while less than50% voting shares of an investee, it is deemed to have significant influences over the investee unless there is obvious evidence showing that the Companycan’t participate in the production and operation decision making thus no significant influence can be formed in such situation. In case that the Company holds less than20%(20% excluded)voting shares of investee, it is deemed to have no significant influences over the investee, unless there is obvious evidence showing the Company can participate in the production and operation decision making of the investee thus significant influence can be formed in such situation.
(4)Depreciation test method and depreciation allowance
As for the long-term equity investment for subsidiary, joint ventures and affiliated enterprise, impairment provision should be as follow: (1) the Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year. (2) Recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the assets group where such single asset belongs to. (3) Determination of assets group is based on whether the major cash inflow from one asset group is independent from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4) Once realized, asset impairment losses would not be transferred back in future account periods. As for the long term equity investment by which the Company has no common control or significant influence over the investee, and where there is no quotation in active market and whose fair value can not be measured reliably, Impairment losses are calculated based on the difference between the carrying value and the present value of predicted future cash flow. For details, please refer to the measurement treatment for impairment losses of account receivables. If there is objective evidence showing the value of financial assets has been recovered which is related objectively to the issues
occurred after recognition of such losses (such as enhancement of the credit rating of debtor), the impairment losses previously realized shall be written back and recorded in current profit and losses. However, the carrying value after such written-back shall not exceed the amortized cost of the financial assets as at the written-back date assuming no impairment reserve is provided.
14. Investment real estate
Investment real estate refers to the real properties for the purpose of rental or value increase or both. Investment real estate of the Company including rented land use right, land use right on hand and ready for transfer after appreciation and rented buildings.
The Company initiated the investment real estate on the cost while obtained, and accrual depreciation or amortization by period based on relevant regulation of fixed assets or intangible assets.
For the investment real estate adopting subsequent measures for cost mode, as for impairment, the follow measures should be taken:
(1) The Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year.
(2) Recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the assets group where such single asset belongs to.
(3) Determination of assets group is based on whether the major cash inflow from one asset group is independent from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4) Once realized, asset impairment losses would not be transferred back in future account periods.
15. Fixed assets
(1) Fixed assets confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in excess of 1 financial year. Fixed assets shall be confirmed when meet the following conditions:①Fixedassets’ related financial benefits shall flow into the Company;
②Their value can be measured.
(2) Determination and evaluation method for fixed assets financed by leasing
The lesser of the fair value of leased assets and present value of the minimum lease payment is taken as the accounting value of the leased assets on the starting date of the lease. As for the fixed assets leased under financing
lease, if it is reasonable to confirm that the Company can acquire the ownership of the leased assets upon expiration of the lease term, the Company provides depreciation of the leased assets within the useful period; if the ownership can not be confirmed, depreciation shall be provided at the lesser of the lease term and the useful period of the leased assets.
(3) Depreciation methods for various fixed assets
Depreciation of fixed assets is provided under straight-line method. Fixed assets start to provide depreciation when it reaches the condition for planned use, and stop provision of depreciation upon de-realization or classification to non-current assets held for sale (other than the fixed assets which are provided with depreciation in full and for continued use and the land accounted in separate calculation). Without consideration of impairment reserve, the Company determines the annual depreciation rates of various fixed assets as follows based on the category of fixed assets, predicted use life and predicted residual value:
|||||
|-|-|-|-|
|Categories|Years of depreciation(years)|Scrap value rate|Yearly depreciation rate|
|Housing buildings|20|10.00%|4.5%|
|Machines equipment|10|10.00%|9%|
|Electronic equipment|5|10.00%|18%|
|Transportation equipment|5|10.00%|18%|

(4) Depreciation test method and depreciation allowance method for fixed assets
(1) The Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year.
(2) Recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the assets group where such single asset belongs to.
(3) Determination of assets group is based on whether the major cash inflow from one asset group is independent from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4) Once realized, asset impairment losses would not be transferred back in future account periods.
(5) Other explanation
①at the end of each year, the Company reviews the use life, predicted net residual value and depreciation method of
fixed assets. In case of any difference between the predicted use life and the previously estimated one, the Company
would adjust the use life of fixed assets; In case of any difference between the predicted net residual value and the previously estimated one, the Company would adjust the predicted net residual value.
②as for the repair expenses occurred by fixed assets, if confirmation conditions for fixed assets are satisfied, the expenses shall be recorded in fixed asset cost; and if the conditions are not satisfied, it shall be recorded in cost and expense of the current period when it occurs.
③fixed assets decoration expenses satisfying capitalization condition: provide depreciation under straight line method during the period of the lesser of the gap period between two decorations and use life of fixed assets. 16. Project under Construction
(1) Classification of project under Construction
The construction in progress is measured based on actual cost and calculated based on different projects.
(2) Standard and timing of converting projects under construction into fixed assets
When construction in progress reaches condition for planned use, it shall be carried forward to fixed assets based on all actual occurrences of expenditures for calculation. If construction in progress reaches condition for planned use while completion settlement has not been proceeded, it shall be transferred to fixed assets at the estimated value based on project budget, construction fee or actual cost since the date when condition for planned use is reached. Meanwhile, the Company would provide fixed assets depreciation according to its depreciation policies. After proceed of such completion settlement, the Company would adjust the previously estimated value based on actual cost, with no adjustment to the previous provision of depreciation.
(3) Recognition standards and accrual method of impairment provision for construction in process: Take the follow measures while impairment:
(1)the Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year.
(2)recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the assets group where such single asset belongs to.
(3)determination of assets group is based on whether the major cash inflow from one asset group is independent from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4)once realized, asset impairment losses would not be transferred back in future account periods.
17. Borrowing Costs
(1)confirmation of capitalization of borrowing expenses
Assets qualifying for capitalization represent those fixed assets, investment property and inventory which require quite a long time of purchase or production activities to reach the conditions for planned use or be ready for sale. Borrowing expenses include borrowing interests, amortization of discount or premium, auxiliary expenses and exchange difference arising from foreign currency borrowings.
The borrowing expenses of the Company which can be directly attributable to the purchase or production of the assets qualifying for capitalization shall be capitalized and recorded in related assets cost; other borrowing expenses are confirmed as expenses upon occurrence according to the occurrence amount and recorded in current profit and loss.
Borrowing expenses start to capitalize when the following conditions are met:
①assets expenditures, which include the expenditures occurred for purchasing or producing assets qualifying for capitalization through payment of cash, transfer of non cash assets or assuming interest debts, have occurred;②borrowing expenses have occurred;
③purchase or production activity for reach of the conditions for planned use or ready for sale has occurred. (2)capitalization period of borrowing expense
Borrowing expenses occurred for purchasing or producing assets qualifying for capitalization shall be recorded in cost of the assets when the assets reach conditions for planned use or be ready for sale; and the borrowing expenses occurred after the assets reach conditions for planned use or be ready for sale shall be recorded in current profit and loss.
(3) Suspend capitalization period
If abnormal interruption occurs during the purchasing or producing assets qualifying for capitalization and the interruption lasts over 3 months consecutively, the borrowing expenses shall stop capitalization temporarily. If part items are completed and available for use separately when purchasing or producing assets qualifying for capitalization, such part of assets shall stop capitalization in respect of their borrowing expenses.
(4)determination method of the capitalized amount of borrowing expenses
The Company calculates the capitalized amount of borrowing expenses per quarter.
Interest expenses (after deduction of the interest income obtained from the unused borrowing capitals as saved in bank or investment income obtained from temporary investment) and auxiliary expenses of special borrowings are capitalized when the assets qualifying for conditions purchased or produced reach conditions for planned use or be
ready for sale.
The interest of general borrowings which should be capitalized is calculated based on the weighted average number of the capital expenditure that the accumulative assets expenditure exceeding special borrowings multiplies the capitalization rate taken in general borrowings. Capitalization rate is calculated based on the weighted average interest rate of general borrowings.
For discount or premium of borrowings, the Company determines the discount or premium amount that shall be amortized in each accounting period under effective interest method and adjusts the interest amount for each period. During the capitalization period, the exchange difference of principals and interests of foreign currency special borrowing shall be capitalized and recorded in the cost of the assets qualifying for capitalization.
18. Biological assets
Biological assets refer to living animals and plants.
Biological assets are classified into consumptive biological assets, productive biological assets and public welfare biological assets.
Consumptive biological asset is the biological assets that held for sale or harvested as agricultural products in the future, including growing field crops, vegetables for timber as well as the amount of livestock for sale and so on Productive biological assets refer to the biological assets held for agricultural products output, labor service providing or for renting, including economic forest firewood forests productive livestock and draught animals, etc. Public welfare biological assets refers to the biological assets aims at protection and enviornment protection, including shelter forests against wind and for fixing sands, soil and water conservation forest and water conservation forest etc.
(1)the Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year.
(2)recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the assets group where such single asset belongs to.
(3)determination of assets group is based on whether the major cash inflow from one asset group is independent from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4)once realized, asset impairment losses would not be transferred back in future account periods.
19. Oil/gas assets
Nil
20. Intangible Assets
(1)Valuation method for intangible assets
The intangible assets of the Company are initially measured at effective cost. In case that the payment for purchasing intangible assets defers out of the normal credit conditions and is of financing substantially, cost of the intangible assets is the present value of the purchase payment.
As for the intangible assets acquired from debtor in debt reorganization to settle debt, the accounting value is determined based on the fair value of such intangible assets. With the preceding conditions that non-monetary assets exchange has business nature and the fair value of assets exchanged in or out can be measured reliably, the accounting value of the intangible assets exchanged in through non-monetary assets exchange is determined based on the fair value of the assets exchanged out, unless there is definite evidence showing the fair value of the assets exchanged in is more reliable. Non-monetary assets exchange not satisfying such preceding conditions, the carrying value of assets exchanged out and relevant tax payables are deemed as cost of the intangible assets exchanged in without confirmation of profit and loss.
(2) Service life estimation for intangible assets with limited service life
The Company analyzes and judges the use life of the intangible assets upon acquisition. If the use life of intangible assets is definite, the Company estimates the term of such use life or quantity of measurement unit such as production capacity that constitutes use life.
||||
|-|-|-|
|Item|Service life expected|Basis|
|Trademark|Remaining time|In line with the term in Trade Mark License|

(3) Determination basis for intangible assets with uncertain service life
The Company analyzes and judges the use life of the intangible assets upon acquisition. For intangible assets for which the term to bring economic benefit to the Company is unpredictable, the intangible assets are deemed as those with indefinite use life.
(4) Withdrawal of impairment of intangible assets
(1)the Company judges on balance sheet date whether there exist indication for impairment of assets. If such indication exists, the Company would estimate its recoverable amount and conduct impairment test. As for the goodwill arising from business combination, intangible assets with indefinite use life and intangible assets for which the condition for planned use is not satisfied, whetherh\there is impairment indication, impairment test shall be conducted every year.
(2)recoverable amount is determined at the higher of the asset fair value less disposal expenses and the present value of the assets predicted future cash flow. The Company estimates the recoverable amount based on single asset. If it is hard to estimate the recoverable amount of single asset, the Company estimates the recoverable amount of the
assets group where such single asset belongs to.
(3)determination of assets group is based on whether the major cash inflow from one asset group is independent
from the cash inflow from other assets or assets group. When the recoverable amount of assets or assets group is
lesser than its carrying value, the Company would reduce the carrying value to recoverable amount, with the reduced amount recorded in current profit and loss, and asset impairment reserve shall be provided accordingly. (4)once realized, asset impairment losses would not be transferred back in future account periods.
(5) Divide the specific standards research stage and development stage
(6) Calculation of expenditure for internalR&D projects
21. Long-term Deferred Expenses
Long term unamortized expenses represent the occurred expenses which should be shared by the current period and future periods with term than one year. The long term unamortized expenses are averagely amortized during the benefit period, among which:
(1) Rental prepaid for operation lease for fixed assets shall be averagely amortized within the term as provided in the lease contract.
(2) Improvement expenditure of the fixed assets leased through operation lease shall be averagely amortized within the lesser of the remaining lease term and the useful life of the leased assets.
(3) As for fixed assets leased through financing lease, the decoration expenses qualifying for capitalization shall be averagely amortized within the lesser of the gap period between two decorations, the remaining lease term and the useful life of the fixed assets.
As for the long term unamortized expenses items which would not benefit the future accounting periods, the amortized value shall be recorded in current profit and loss in full.
22. Assets transfer with repurchase condition attached
Nil
23. Accrued Liabilities
(1) Recognition standards
The performance of the present obligations arising from pending lawsuits, product quality guarantee, loss contract and disposal obligations of oil and gas assets may lead to outflow of economic benefits. If the obligations can be measured reliably, it shall be confirmed as predicted liabilities.
(2) Measurement method
(1) Predicted liabilities are measured initially based on the best estimate for the expenditures required for performance of relevant present obligations with considerations of factors such as risks related to contingent issues, uncertainty and monetary time value. If the influence of monetary time value is significant, the best estimate is determined with discount of the relevant future cash outflow.
(2) Oil and gas assets disposal obligations satisfying confirmation condition for predicted liabilities are confirmed as predicted liabilities and record the original value of the relevant oil and gas assets. The amount equals to the present value of the predicted future expenditure occurred according to the local conditions and relevant requirements. (3) As for those not satisfying confirmation condition for predicted liabilities, the expenditures occurred for dismantle, relocation and premise clearance upon disposal shall be recorded in current profit and loss as clearance expenses when actually occur.
24. Share-based payment and equity instrument
(1) Category of share-based payment
(2) Recognition method for fair-value of equity instrument
(3) Basis of best estimation for vesting equity instrument
(4) Relevant accounting treatment for implementation, amendment and termination of shares payment plan 25. Shares of the Company repurchased
Nil
26. Revenue
(1) Detail judgment standards for recognition of selling goods revenue
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 benefits are probable to flow into the Company; the relevant income and costs can be measured reliably.
(2) Recognition of revenue of assets using right abalienation
In case that the economic benefits related to transactions are probable to flow into the Company and amount of income can be measured reliably, the income from transfer of asset use right is determined as follows:
①interest income shall be determined based on the time used by others for use of the monetary capital of the Company and effective interest rate.
②use fee income shall be determined based on the charge time and method as agreed by the relevant contract or agreement.
(3) Basis of recognition of labor revenue providing
If the result of labor service transaction provided on balance sheet date can be measured reliably, the result shall be confirmed under completion percentage method. The total income from provision of labor services is determined based on the contract or agreement amount received or receivable from the acceptor of labor services, provided that such contract or agreement amount received or receivable shall be fair.
If the result of labor service transaction provided on balance sheet date can not be measured reliably, then it shall
proceed as follows:
①if the occurred labor service cost can be compensated, the Company would confirm labor service provision income based on the occurred labor service cost and carry forward the same to labor service cost.
②if the occurred labor service cost can not be compensated, the Company would record the occurred labor service cost in current profit and loss without confirmation of labor service provision income.
(4) Recognition basis and method of construction progress completion while recognize revenue from labor service providing and from construction contract by percentage of completion method
Nil
27. Government Grants
(1) Types
Government grants comprise of those related to assets and those related to income.
(2) Accounting policy
(1) Confirmation and measurement of government grants
Government grants are realized where the conditions enclosed with the government grants is satisfied and the same can be received.
If government grants are monetary assets, they shall be measured based on the amount received or receivable; If government grants are not monetary assets, they shall be measured at fair value; if fair value can not determined reliably, they shall be measured at nominal amount.
(2) Accounting treatment for government grants
Government grants related to assets are realized as deferred income and allocated averagely in the use life of the relevant assets which shall be recorded in current profit and loss.
Government grants measured at nominal amount are recorded in current profit and loss directly.
Government grants related to income which are used to make up for the relevant expenses and losses in future periods are realized as deferred income and recorded in current profit and loss in the period when related expenses are realized; those which are used to make up for the relevant occurred expenses or losses shall be recorded in current profit and loss directly.
28. Deferred tax assets / deferred income tax liabilities
(1) Basis of affirming the deferred income tax assets
According to the temporary differences between the carrying value of assets and liabilities as at the balance sheet date and tax bases, the Company realizes deferred income tax under balance sheet debt method. Except for the goodwill adjustment arising from business combination or deferred income tax related to the transactions or issues
which should be recorded inowners’ equity directly are recorded inowners’ equity, deferred income tax shall be recorded in current profit and loss as income tax expense.
The taxable temporary difference shall confirm the relevant deferred income tax liabilities, unless such difference occurs in the following transactions:
(1)initial confirmation of goodwill, or initial confirmation of the assets or liabilities occurred in the transactions with the following characteristics: the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(2)initial confirmation of the assets or liabilities occurred in the transactions with the following characteristics: the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(3)as for the taxable temporary differences related to investments in subsidiaries, joint venture and associates, the time for transferring back the temporary difference is under control and it is probable that the temporary difference will not transfer back in foreseeable future.
As for the deductible losses and tax deduction which can be used to deduct temporary difference and carried forward in future years, the Company takes the future taxable income which can be obtained and used to deduct deductible temporary difference, deductible losses and tax deduction as the limit to realize the arising deferred income tax assets, unless such deductible temporary difference occurs in the following transactions:
(1)the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(2)as for deductible temporary difference related to investments in subsidiaries, joint venture and associates, the Company realizes the underlying deferred income tax assets when the following conditions are satisfied: temporary difference is probable to transfer back in foreseeable future, and it is probable to obtain such taxable income to offset deductible temporary differences.
On balance sheet date, as for deferred income tax assets and deferred income tax liabilities, the Company measures the assets and liabilities at the tax rate applicable in the period when the assets are recovered or the liabilities are settled. Meanwhile, the measurements shall reflect the income tax effects from the methods of recovering assets or settling liabilities as at balance sheet date.
The Company reviews carrying value of deferred income tax assets on balance sheet date. If it is not probable to obtain sufficient taxable income in future periods to offset the benefits of deferred income tax assets, the carrying value of deferred income tax assets shall be reduced, with the reduction amount recorded in current income tax expenses. As for the deferred income tax assets previously recorded inowners’ equity upon realization, the reduction amount shall also be recorded inowners’ equity. When it is probable to obtain sufficient taxable income tax, the reduced carrying value of deferred income tax assets can be resumed.
(2) Recognition basis for deferred income tax liability
According to the temporary differences between the carrying value of assets and liabilities as at the balance sheet
date and tax bases, the Company realizes deferred income tax under balance sheet debt method. Except for the goodwill adjustment arising from business combination or deferred income tax related to the transactions or issues which should be recorded inowners’ equity directly are recorded inowners’ equity, deferred income tax shall be recorded in current profit and loss as income tax expense.
The taxable temporary difference shall confirm the relevant deferred income tax liabilities, unless such difference occurs in the following transactions:
(1)initial confirmation of goodwill, or initial confirmation of the assets or liabilities occurred in the transactions with the following characteristics: the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(2)initial confirmation of the assets or liabilities occurred in the transactions with the following characteristics: the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(3)as for the taxable temporary differences related to investments in subsidiaries, joint venture and associates, the time for transferring back the temporary difference is under control and it is probable that the temporary difference will not transfer back in foreseeable future.
As for the deductible losses and tax deduction which can be used to deduct temporary difference and carried forward in future years, the Company takes the future taxable income which can be obtained and used to deduct deductible temporary difference, deductible losses and tax deduction as the limit to realize the arising deferred income tax assets, unless such deductible temporary difference occurs in the following transactions:
(1)the transaction is not business combination, and the occurrence of which neither affect accounting profit nor taxable income;
(2)as for deductible temporary difference related to investments in subsidiaries, joint venture and associates, the Company realizes the underlying deferred income tax assets when the following conditions are satisfied: temporary difference is probable to transfer back in foreseeable future, and it is probable to obtain such taxable income to offset deductible temporary differences.
On balance sheet date, as for deferred income tax assets and deferred income tax liabilities, the Company measures the assets and liabilities at the tax rate applicable in the period when the assets are recovered or the liabilities are settled. Meanwhile, the measurements shall reflect the income tax effects from the methods of recovering assets or settling liabilities as at balance sheet date.
The Company reviews carrying value of deferred income tax assets on balance sheet date. If it is not probable to obtain sufficient taxable income in future periods to offset the benefits of deferred income tax assets, the carrying value of deferred income tax assets shall be reduced, with the reduction amount recorded in current income tax expenses. As for the deferred income tax assets previously recorded inowners’ equity upon realization, the reduction amount shall also be recorded inowners’ equity. When it is probable to obtain sufficient taxable income tax, the reduced carrying value of deferred income tax assets can be resumed.
29. Operating lease/ Finance lease
(1) Accounting treatment for operating lease
①the lease payment paid for leasing assets is amortized under straight line method in the entire lease period without deduction of lease-for-free period, and is recorded in current expenses. The initial direct expenses paid by the Company related to lease transactions shall be recorded in current expenses.
If asset leaser assumes the lease related expenses which shall be assumed by the Company, the Company shall deduct such expenses from the total rental and amortize based on the deducted rental expenses during the lease period and record in current expenses.
②the lease fee collected by the Company for assets lease is amortized under straight line method in the entire lease period without deduction of lease-for-free period, and is realize as lease income. The initial direct expenses paid by the Company related to lease transactions shall be recorded in current expenses; for significant amount, it shall be capitalized and recorded in current income in phases under the same basis as realization of lease income in the entire lease period.
If the Company assumes the lease related expenses which shall be assumed by the lessee, the Company shall deduct such expenses from the total rental income and allocate based on the deducted rental expenses during the lease period.
(2) Accounting treatment for finance lease
①assets leased by financing lease: the Company accounts the leased assets at the lower of the fair value of leased assets and present value of the minimum lease payment on the inception date of the lease, and the minimum lease payment is deemed as the accounting value of long term account payables, and the difference is taken as unrealized financing expenses.
The Company amortizes the unrealized financing expenses at effective interest rate method in the asset lease period and records in finance expenses.
②assets leased out by financing lease: on the inception date of the lease, the Company realizes the difference between the sum of financing lease account receivables and unguaranteed remaining value and its present value as unrealized financing income which is conformed as lease income in future periods involving lease. The initial direct expenses occurred by the Company related to lease transaction shall be recorded in the initial measurement of financing lease account receivables. And income realized in lease period shall be reduced accordingly.
(3) Accounting treatment for leaseback
The Company groups the lease by which all the risks and remunerations related to ownership of assets are transferred substantially as financing lease and others are operation lease.
30. Assets held for sale
(1) Recognition standards
Non current assets satisfying the following conditions are grouped as assets held for sale: i. The Company has made resolution in respect of the disposal of the non current assets; ii. The Company has entered into irrecoverable transfer agreement with transfee and iii. The transfer would be completed within one year.
(2) Accounting method
As for fixed assets held for sale, the Company shall adjust the predicted net residual value of the fixed assets to make the predicted net residual value of fixed assets reflect the fair value less disposal expenses, while not exceeding the original carrying value of the fixed assets when condition of held-for-sale is satisfied. The difference between the original carrying value and the adjusted predicted net residual value shall be recorded in current profit and loss as asset impairment.
Other non current assets such as intangible assets satisfying condition of held-for-sale are treated by reference to the above principles.
31. Assets securitization
Nil
32. Hedge accounting
Nil
33. Changes of major accounting policies and accounting estimation
Whether there have changes of major accounting policies and accounting estimation in report period or not□ Yes√ No
Accounting policies and accounting estimation has no changed in reporting period
(1) Changes in accounting policies
Whether have changes in accounting policies in report period
□ Yes√ No
(2) Changes in accounting estimates
Whether have changes in accounting estimates in report period
□ Yes√ No
34. Error correction of previous accounting
Whether has error correction of previous accounting occurred in this period
□ Yes√ No
Nil
(1) Retrospective Restatement
Is there has errors of previous accounting adopt retrospective restatement in this period
□ Yes√ No
(2) Prospective Application
Is there has errors of previous accounting adopt retrospective restatement in this period
□ Yes√ No
35. Other major accounting policy, accounting estimation and preparation method for financial statement There is no other major accounting policy, accounting estimation and preparation method for financial statement in the Period
V. Taxes
1. Mai tax category and tax rate
||||
|-|-|-|
|Tax category|Tax calculation evidence|Tax rate|
||Sales income, and income from||
|Value added tax|processing, maintenance, making repairs|17%|
||and supplying replacements, and labor||
||service||
|Sales tax|Taxable labor income|5%|
|Tax for maintaining and building cities|Amount of value-added tax and sales tax|7%|
||payable||
|Business income tax|Taxable income|25%|
|Educational surtax|Amount of value-added tax and sales tax|3%|
||payable||
||Amount of value-added tax and sales tax||
|Local educational surtax||2%|
||payable||
|Property tax|70% of the original value of the property|1.2%|

The income tax rates applicable to each Branch Company or plant
Nil
2. Tax preference and approvals
Nil
3. Other explanation
Nil
VI. Business Combination and Consolidated Financial Statements
1. Subsidiaries
The Company has one subsidiary in the Period, that is Shenzhen Emmelle Industrial Co., Ltd.
(1) Subsidiaries obtained by means of establishment or investment
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||The|
||||||||||||||balance|
||||||||||||||after the|
||||||||||||||parent|
||||||||||||||compan|
||||||||||||||y’s|
||||||||||||||owner’s|
||||||||||||||equity|
||||||||||||||writing|
||||||||||||||down|
||||||||Balance||||||the|
||||||||||||||excess|
||||||||of other||||||of the|
||||||||items|||||Amount|current|
|||||||Actual|||||||loss|
||||||||actually|||||in|underta|
|||||||amount||||||minority||
|||Registra|Nature of|Register|Busines|invested|forming|Proporti|Proportion of|Consolidated|Minorit|interest|ken byminority|
|Full|Type|tion||ed|||the net|on of|voting|report|y’s|used for|sharehol|
|name|||business||s scope|at||shares||||writing||
|||place||capital|||investm|held (%)|power(%)|statement or not|equity|down|ders ofthe|
|||||||period-e|ent in|||||minority|subsidia|
|||||||nd||||||gain and||
||||||||the|||||loss|ry over|
||||||||||||||the|
||||||||subsidia||||||share|
||||||||ries||||||enjoyed|
||||||||||||||by|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders in|
||||||||||||||the|
||||||||||||||original|
||||||||||||||owner’s|
||||||||||||||equity|
||||||||||||||of the|
||||||||||||||subsidia|
||||||||||||||ry|
|||||RMB 2|Bicycle|||||||||
|Shenzhe||||||||||||||
|n||||million|and|||||||||
|Emmell|Controll|||||||||||||
|e|ing|Shenzhe|||parts|||70.00%|70.00%|Y||||
||subsidia|n||||||||||||
|Industri|ry||||distribut|||||||||
|al Co.,||||||||||||||
|Ltd.|||||ion|||||||||

Other explanation on subsidiary obtained by establishment or investment:
The company is a limited liability enterprise, organization code is 72617897-5
(2) Subsidiaries acquired by business combination under the common control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance|
||||||||||||||between|
||||||||||||||the|
||||||||||||||owners’|
||||||||||||||equity in|
||||||||||||||parent|
||||||||||||||offsettin|
||||||||||||||g the|
||||||||||||||current|
||||||||||||||losses|
||||||||Balance|||||Amount|attributa|
||||||||of other|||||in|ble to|
|||||||Actual|items|||||minority|minority|
|||||||investm|which|||||interest|sharehol|
|||||||||||Sta||||
|Name of|Type of|||Register||ent|actually|Holding|Voting||Minorit|availabl|ders of|
|||Register|Busines||Busines|||||tements||||
|subsidia|subsidia|||ed||amount|constitut|proporti|proportio|combine|y’s|e to|subsidia|
|||ed place|s nature||s scope|||||d (Y/N)||||
|ry|ry|||capital||at|es net|on%|n%||equity|offset|ries over|
|||||||period-e|investm|||||minority|the|
|||||||nd|ent in|||||gains|share of|
||||||||subsidia|||||and|beginni|
||||||||ries|||||losses|ng|
||||||||||||||owner’s|
||||||||||||||equity in|
||||||||||||||such|
||||||||||||||subsidia|
||||||||||||||ries by|
||||||||||||||the|
||||||||||||||minority|
||||||||||||||sharehol|
||||||||||||||ders|

 Other explanation on subsidiary obtained by enterprise merger under same control:
Nil
(3) Subsidiaries acquired by business combination not under the common control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Actual|Balance|Holding|Voting||Minorit|Amount|Balance|
|||||||||||Sta||||
|Name of|Type of|Registere|Business|Registere|Business|||||||||
|||||||investmen|of other|proportio|proportion|tements|y’s|in|between|
|subsidiary|subsidiary|d place|nature|d capital|scope|||||combine||||
|||||||t amount|items|n%|%|d (Y/N)|equity|minority|the|

|||||
|-|-|-|-|
|at|which|interest|owners’|
|period-en|actually|available|equity in|
|d|constitute|to offset|parent|
||s net|minority|offsetting|
||investmen|gains and|the|
||t in|losses|current|
||subsidiari||losses|
||es||attributabl|
||||e to|
||||minority|
||||sharehold|
||||ers of|
||||subsidiari|
||||es over|
||||the share|
||||of|
||||beginning|
||||owner’s|
||||equity in|
||||such|
||||subsidiari|
||||es by the|
||||minority|
||||sharehold|
||||ers|

 Other explanation on subsidiary obtained by enterprise merger not under the same control:
Nil
2. Special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing
In RMB
||||
|-|-|-|
||Main business contact with the|Balance of main assets and liability at period-end recognized in|
|Name|||
||Company|consolidated statement|

Other explanation for special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing: Nil
3. Explanation on changes of consolidation scope
Explanation on changes of consolidation scope
Nil
□Applicable√ Not applicable
4. Entities newly included in consolidate scope during the reporting period and entities ceasing to be
included in consolidate scope during the reporting period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or leasing newly included in consolidation scope during the period
In RMB
||||
|-|-|-|
|Name|Net assets as at period-end|Net profit for the period|

 Companies, special-purpose entity and operation entity with controlling rights formed through entrust operation or leasing excluded in consolidation scope in the Period
In RMB
||||
|-|-|-|
|||Net profit from the year-begin to the|
|Name|Net assets as at the disposal date||
|||disposal date|

Other explanation on entities newly included in consolidation scope and entities ceasing to be included in consolidation scope: Nil
5. Business combination under the common control during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
||Basis for||Consolidated||Consolidated|
|||||Consolidated net||
||determination of|Actual controller|income for the||operating activities|
|||||profit from this||
|Party to be consolidated|business|under the common|period from the||cash flow from this|
|||||period to||
||combination under|control|period-begin to||period to|
|||||consolidation date||
||the common control||consolidation date||consolidation date|

 Other explanation for business combination under the common control:
Nil
6. Business combination not under the common control during the reporting period
In RMB
||||
|-|-|-|
|Party to be consolidated|Amount of goodwill|Calculation method for goodwill|

Other explanation for business combination not under the common control:
Nil
Achieved enterprise combination by multiple trading on step-by-step basis and obtained controlling rights in the Period
□Applicable√ Not applicable
7. Loss of subsidiaries due to disposal of equity interests without controlling rights during the reporting period
||||
|-|-|-|
|Subsidiary|Disposal date|Recognition method for gains and losses|

 Other explanation for loss of subsidiaries due to disposal of equity interests without controlling rights
Nil
Dispose investment for subsidiary by multiple trading on step-by-step basis and losing controlling rights lasting to the Period□Applicable√ Not applicable
8. Counter purchase occurred during the reporting period
|||||
|-|-|-|-|
||Basis for determination of|Determination method for|Calculation method for goodwill|
|Backdoor||||
||counter purchase|consolidated costs|recognized in consolidation or|

||
|-|
|recorded in current gains and|
|losses|

Other explanation for counter purchase:
Nil
9. Absorption consolidation occurred during the reporting period
In RMB
||||||
|-|-|-|-|-|
|Types of absorption consolidation|Major assets consolidated||Major liabilities consolidated||
|Absorption consolidation under common control|Item|Amount|Item|Amount|
|Absorption consolidation not under common|||||
||Item|Amount|Item|Amount|
|control|||||

Other explanation for absorption consolidation:
Nil
10. Translation exchange rates for items in major statements of overseas operating entities
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Items||Conversion|||Conversion||
||Foreign currency||Amount in RMB|Foreign currency||Amount in RMB|
|||rate|||rate||
|Cash:|--|--|204,015.53|--|--|49,992.08|
|RMB|||||||
||--|--|204,015.53|--|--|48,495.10|
|HKD|||||||
|||||1,894.30|0.78623|1,489.36|
|USD|||||||
|||||1.25|6.1000|7.62|
|Bank deposit:|--|--|29,156,692.68|--|--|26,784,179.51|
|RMB|--|--|29,156,692.68|--|--|26,784,179.51|
|Other monetary fund:|--|--|0.00|--|--|0.00|
|RMB|--|--|0.00|--|--|0.00|
|Total|--|--|29,360,708.21|--|--|26,834,171.59|

 Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential recovery risks arising from pledge, mortgage or frozen:
Nil
2. Transactional financial assets
(1) Transactional financial assets
In RMB
||||
|-|-|-|
|Item|Fair value as at period-end|Fair value as at period-begin|

 (2) Realization of restricted transactional financial assets
In RMB
||||
|-|-|-|
||Other significant restrictions on restriction||
|Item||Amount as at period-end|
||conditions for sale or realization||

(3) Explanation for hedge instruments and related hedge transactions
3. Notes receivable
(1) Classification of notes receivable
In RMB
||||
|-|-|-|
|Category|Period-end|Period-begin|
|Bank acceptance bill|9,814,204.40|0.00|
|Business acceptance bill|0.00|0.00|
|Total|9,814,204.40||

(2) Notes receivable already pledged by the Company at the end of the period
In RMB
||||||
|-|-|-|-|-|
|Issuer|Issue date|Expiring date|Amount|Notes|

(3)Transfer of notes to notes receivable due to theissuer’s impossibility to perform its obligations, and un-matured notes endorsed to others by the Company as at the period-end
Notes transfer to account receivable due to weak performance of drawer
In RMB
||||||
|-|-|-|-|-|
|Issuer|Issue date|Expiring date|Amount|Notes|

Explanation:
Nil
Un-matured notes endorsed to others by the Company
In RMB
||||||
|-|-|-|-|-|
|Drawn by|Date of drawl|Expire date|Amount|Remark|
|Jinan YUSIGN Sales Co.,|||||
||2014-05-21|2014-11-21|27,530,000.00||
|Ltd.|||||
|Henan Daming Kemao|||||
||2014-06-17|2014-12-17|14,867,917.90||
|Co., Ltd.|||||
|Shijiazhuang Dasong|||||
||2014-05-22|2014-11-22|4,470,000.00||
|Technology Co., Ltd.|||||

||||||
|-|-|-|-|-|
|Suzhou Jiaxin Economy|||||
||2014-04-15|2014-10-15|2,050,000.00||
|& Trade Co., Ltd.|||||
|Suzhou Daming Vehicle|||||
||2014-03-27|2014-09-27|600,000.00||
|Industry Co., Ltd.|||||
|Total|--|--|49,517,917.90|--|

Note: amount of notes with endorsement provided to other party but not post-dated of the Company in first half of the year was RMB 50,218,459.41.
Explanation for commercial acceptance notes discounted or pledged:
Nil
4. Dividend receivables
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Depreciation for|
|||Increase in this|Decrease in this||Reasons of||
|Item|Period-begin|||Period-end||relevant account|
|||period|period||unrevoked||
|||||||or not|
|Including:|--|--|--|--|--|--|
|Including:|--|--|--|--|--|--|

 Explanation:
5. Interest receivables
(1) Interest receivables
In RMB
||||||
|-|-|-|-|-|
|Item|Period-begin|Increase in this period|Decrease in this period|Period-end|

 (2) overdue interests
In RMB
||||
|-|-|-|
|Loan provider|Times overdue (days)|Overdue interests|

(3) Explanation on interest receivable
6. Accounts receivable
(1) Exposure of accounts receivable by category:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end||||Period-begin||||
|Category|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Account receivable of bad debt provision withdrawal by combination|||||||||
|Withdrawal bad debt|3,479,566.9||1,271,804.8||8,346,657||||
|||100.00%||36.55%||100.00%|1,286,406.13|15.41%|
|provision by age group|7||6||.41||||
||3,479,566.9||1,271,804.8||8,346,657||||
|Subtotal of group||100.00%||36.55%||100.00%|1,286,406.13|15.41%|
||7||6||.41||||
||3,479,566.9||1,271,804.8||8,346,657||||
|Total||--||--||--|1,286,406.13|--|
||7||6||.41||||

Explanation to the category of accounts receivable:
According to the business scale, business nature, andcustomers’ settlement, etc., the account receivable with single big amount is determined to be RMB 5 million. The account receivable with single big amount has no depreciation reserve, and the reserve for bad and doubtful account is withdrawn with age analysis method.
Account receivable with single significant amount and withdrawal bad debt provision separately at period end
□Applicable√ Not applicable
In combination, account receivable withdrawal bed debt provision by age analysis method:
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Age|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Ratio||Amount|Ratio||
|Within 1year|||||||
|Including:|--|--|--|--|--|--|
|Within 1year|2,129,333.82|61.19%|6,388.00|6,996,424.26|83.82%|20,989.27|
|Subtotal of Within|||||||
||2,129,333.82|61.19%|6,388.00|6,996,424.26|83.82%|20,989.27|
|1year|||||||
|1-2 years|59,730.00|1.72%|179.19|59,730.00|0.72%|179.19|
|2-3 years|25,341.50|0.73%|76.02|25,341.50|0.30%|76.02|
|Over 3 years|1,265,161.65|36.36%|1,265,161.65|1,265,161.65|15.16%|1,265,161.65|
|Total|3,479,566.97|--|1,271,804.86|8,346,657.41|--|1,286,406.13|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable
□Applicable√ Not applicable
Accounts with single significant amount and bad debts provision accrued individually at end of period
□Applicable√ Not applicable
(2) Reversal or recovery of account receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determinationof original bad debtreserve|Accumulated provision of||
|Contents of account|Reason for reversal of|||Amounts reversed or|
||||bad debt reserve before||
|receivables|recovery|||recovered|
||||reversal or recovery||
|Total|--|--|0.00|--|

Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion|Reasons|
|receivables|||||
|Total|0.00|0.00|--|--|

Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
Nil
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of account||||Arising from related|
|||Time of write-off|Amount written off|Reason for write-off||
|company|receivables||||transactions (Y/N)|
|Total|--|--|0.00|--|--|

Explanation for write-off of account receivables:
Nil
(4) Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|
|Total|0.00|0.00|0.00|0.00|

 (5) Top 5 units with an amount of account receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion among the|
||Relationship with the||||
|Name||Amount|Period|gross accounts receivable|
||company||||
|||||(%)|
|Customer 1|Non-affiliated|1,028,931.76|Within 1year|29.57%|
|Customer 2|Non-affiliated|261,419.60|Within 1year|7.51%|

||||||
|-|-|-|-|-|
|Customer 3|Non-affiliated|254,580.20|Within 1year|7.32%|
|Customer 4|Non-affiliated|117,483.98|Within 1year|3.38%|
|Customer 5|Non-affiliated|109,419.79|Within 1year|3.14%|
|Total|--|1,771,835.33|--|50.92%|

 (6) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total account|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|
|Total|--|0.00|0.00%|

 (7) Account receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to derecognizing|
|Total|0.00|0.00|

 (8) As for securities with account receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Period-end|
|Assets:||
|Subtotal|0.00|
|Liabilities:||
|Subtotal|0.00|

 7. Other receivables
(1) Disclosure of other receivables by classification
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end||||Period-begin||||
|Types|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio|
|Other receivable of bad debt provision withdrawal by combination|||||||||
|Withdrawal bad debt|||||107,821,659.||||
||988,053.75|100.00%|427,585.97|43.28%||100.00%|426,229.56|0.40%|
|provision by age group|||||25||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||||||107,821,659.||||
|Subtotal of group|988,053.75|100.00%|427,585.97|43.28%||100.00%|426,229.56|0.40%|
||||||25||||
||||||107,821,659.||||
|Total|988,053.75|--|427,585.97|--||--|426,229.56|--|
||||||25||||

Explanation for category of other receivables:
According to the business scale, business nature, andcustomers’ settlement, etc., the account receivable with single big amount is determined to be RMB 5 million. The account receivable with single big amount has no depreciation reserve, and the reserve for bad and doubtful account is withdrawn with age analysis method.
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
□Applicable√ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Age|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Ratio||Amount|Ratio||
|Within 1year|||||||
|Including:|||||||
|Within 1year|539,318.23|54.58%|1,617.95|107,372,923.73|99.58%|261.54|
|Subtotal of Within 1year|539,318.23|54.58%|1,617.95|107,372,923.73|99.58%|261.54|
|2-3 years|22,836.00|2.31%|68.50|22,836.00|0.02%|68.50|
|Over 3 years|425,899.52|43.11%|425,899.52|425,899.52|0.40%|425,899.52|
|Total|988,053.75|--|427,585.97|107,821,659.25|--|426,229.56|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□Applicable√ Not applicable
Other receivable with single minor amount while withdrawal bad debt provision separately at end of period
□Applicable√ Not applicable
(2) Reversal or recovery of other receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determination|Accumulated provision o|fAmounts reversed orrecovered|
||Reason for reversal of||||
|Contents of other receivables||of original bad debt|bad debt reserve before||
||recovery||||
|||reserve|reversal or recovery||

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

Provision for bad debt reserve for other receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion|Reason|
|receivables|||||
|Total|0.00|0.00|--|--|

Explanation for other receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other||||Arising from relatedtransactions (Y/N)|
|||Time of write-off|Amount written off|Reason for write-off||
|company|receivables|||||
|Total|--|--|0.00|--|--|

Explanation for write-off of other receivables:
Nil
(4) Other receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|
|Total|0.00|0.00|0.00|0.00|

 (5) Nature or content of other receivables with significant amount
In RMB
|||||
|-|-|-|-|
|||Nature or content of||
|Name of the company|Amount||Proportion in total other receivables|
|||account||
|Labor union|404,000.00|Account receivable|40.89%|
|Total|404,000.00|--|40.89%|

 Explanation
Nil
(6) Top 5 other receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with the|Amount||Proportion in total other|
|Name of the company|||Terms||
||Company|||receivables (%)|
|Total|--|0.00|--|0.00%|

 (7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total other|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|
|Total|--|0.00|0.00%|

 (8) Other receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to de-recognition|
|Total|0.00|0.00|

 (9) As for securities with other receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Period-end|
|Assets:||
|Subtotal|0.00|
|Liabilities:||
|Subtotal|0.00|

 (10) Government subsidy recognized by amount receivable at end of period
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Reasons of fails to|
||Item of|||Time to|Amount|||
|Name of the||Closing|Age of|||Basis for|collected amount in|
||government|||collected|estimated to|||
|company||balance|period-end|||obtained|estimated time (if|
||subsidy|||estimated|obtained|||
||||||||applicable)|
|Total|--|0.00|--|--|0.00|--|--|

8. Payment in advance
(1) Analysis of payments in advance by aging
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Age|||||
||Amount|Ratio|Amount|Ratio|
|Within 1year|874,283.29|92.62%|3,748.01|2.11%|
|1-2 years|69,700.00|7.38%|173,888.48|97.89%|
|Total|943,983.29|--|177,636.49|--|

 Explanation for aging analysis of payments in advance:
Nil
(2) Top 5 of payments in advance
In RMB
||||||
|-|-|-|-|-|
||Relationship with the||||
|Name of the company||Amount|Time|Reason for unsettlement|
||Company||||
|Customer 1|Non-affiliated|263,114.00|Within 1 year||
|Customer 2|Non-affiliated|121,070.80|Within 1 year||
|Customer 3|Non-affiliated|119,107.00|Within 1 year||
|Customer 4|Non-affiliated|83,527.00|Within 1 year||
|Customer 5|Non-affiliated|69,700.00|Within 1 year||
|Total|--|656,518.80|--|--|

Explanation for major units paid in advance:
Nil
(3) Shareholders holding5% or above voting shares of the Company in payments in advance during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|

 (4) Explanation for account paid in advance
Nil
9. Inventory
(1) Classification
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Raw materials|49,675.47||49,675.47|10,580.00||10,580.00|
|Stock products|22,796,765.21||22,796,765.21|4,534,536.43||4,534,536.43|
|Total|22,846,440.68||22,846,440.68|4,545,116.43||4,545,116.43|

 (2) Inventory impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|Provision for this|Decrease during this period|||
|Kinds of inventories|||||Closing book balance|
||balance|period|Reversal|Written-off||

(3) Particular about inventory impairment provision
|||||
|-|-|-|-|
||||Proportion of the reversal|
||Accrual basis for inventory|Reason for reversal during the|amount during the year in the|
|Item||||
||impairment provision|period|period-end balance of the|
||||inventory (%)|

 Explanation on inventory
Nil
10. Other current assets
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

Explanation on other current assets
Nil
11. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

 For financial assets available for sale that re-category from investment held to maturity, re-category amounting as Yuan, and takes percent of the investment held to maturity before re-category.
(2) Long-term debt investment in financial assets available for sales
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Interestreceivable orreceivedaccumulative||
||||Initial||||||
||||||Opening|||Closing|
|Bond|Type|Book value|investment|Expired dated||Interest|||
||||||balance|||balance|
||||cost||||||

Explanation on long-term debt investment in financial assets available for sales
(3) Impairment of financial assets available for sale
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets available for|Equity instrument|Debt instrument|||
||||Other|Total|
|sale|available for sale|available for sale|||

(4) Changes of impairment of financial assets available for sale in period
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets|Equity instrument|Debt instrument|||
||||Other|Total|
|available for sale|available for sale|available for sale|||

(5) Explanation on closing fair value of equity instrument available for sale which was down sharply and drop continuously
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Decline||||
|Equity||||||Explanation on not to accrual|
||||changes (%)||Accrual||
|instrument||||Time to drop||impairment in line with the|
||Cost|Fair value|of fair value||impairment||
|available for||||continuously||difference between cost and|
||||comparing||amount||
|sale (by items)||||||closing fair value|
||||with its costs||||

12. Held-to-maturity investment
(1) Particular about held-to-maturity investment
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|

Explanation on held-to-maturity investment
(2) Held-to-maturity investment that sold in report period but not expired
In RMB
||||
|-|-|-|
|Item|Amount|Proportion in amount before sold (%)|

 Explanation on held-to-maturity investment that sold in report period but not expired
13. Long-term account receivable
In RMB
||||
|-|-|-|
|Types|Period-end|Period-begin|

14. Investment for affiliated enterprise and joint ventures
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Equity|Proportion of||||||
|||||||Total operation||
|Invested|proportion held|voting rights in|Total assets at|Total liability at|total net assets||Net profit in|
|||||||revenue in this||
|company|by the|invested|period-end|period-end|at period-end||this period|
|||||||period||
||Company (%)|company (%)||||||
|I. Joint venture||||||||
|II. Associated company||||||||

Explanation on major accounting policy and accounting estimation in joint venture and affiliated enterprises difference from the policy and estimation of the Company:
15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanati||||
|||||||||on on the||||
|||||||||incongruit||||
||||||||Proportio|||Impairme||
|||||||Proportio||y in share||||
||||||||n of|||nt||
|||||||n of share||holding||||
|||||Increase/d|||voting||Impairme|provision|Cash|
|Invested|Calculatio|Investme|Opening||Closing|holding in||proportio||||
|||||ecrease(+,|||rights in||nt|of|bonus this|
|company|n method|nt cost|balance||balance|invested||n and||||
|||||-)|||invested||provision|accruing|period|
|||||||company||voting||||
||||||||company|||this||
|||||||(%)||proportio||||
||||||||(%)|||period||
|||||||||n in||||
|||||||||invested||||
|||||||||company||||
|Total|--|0.00|0.00|0.00|0.00|--|--|--|0.00|0.00|0.00|

 (2) Limited ability for capital transfer to investment enterprise
In RMB
||||
|-|-|-|
|Long-term equity investment that has|||
|||un-recognized investment losses|
|limited ability of capital transfer to|Restriction reasons||
|||accumulative in period|
|investment enterprise|||

Explanation on long-term equity investment
16. Investment real estate
(1) Investment real estate measured by cost
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Item|Opening book balance|||Closing book balance|
|||period|period||

In RMB
||
|-|
|This period|

(2) Investment real estate measured by fair value
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase during the period|||Decrease during this period|||
||||Self-use real|||||
||Opening fair|||Gains/losses||Transfer to|Closing fair|
|Item||||||||
||||estate or|||||
||value|Purchase||of fair value|Disposal|self-use real|value|
||||transfer from|||||
|||||changed||estate||
||||inventory|||||

Explain the investment real estate that changing measurement mold in report period, and the investment real estate without property certificate done as well as the reasons for property certificate un-finished and predicted the time to obtained that certificates 17. Fixed assets
(1) Particular about fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|||Decrease during this|Closing book|
|Item||Increase during the period||||
||balance|||period|balance|
|I. Total original book value:|1,171,452.63|319,804.27||515,478.06|975,778.84|
|Transportation tools|590,000.00|316,300.00||515,478.06|390,821.94|
|Electronic and other||||||
||581,452.63|3,504.27||||
|equipment||||||
||Opening book|Increase during||Decrease during this|Book balance at|
|--|||Accrual in this period|||
||balance|this period||period|period-end|
|II. total of accumulated||||||
||943,628.26||28,846.25|448,829.52|523,644.99|
|depreciation:||||||
|Transportation tools|551,711.93||16,261.35|448,829.52|119,143.76|
|Electronic and other||||||
||391,916.33||12,584.90||404,501.23|
|equipment||||||
||Opening book||||Book balance at|
|--||--||||
||balance||||period-end|
|III. total net value of fixed||||||
||227,824.37|--|||452,133.85|
|assets||||||
|Transportation tools|38,288.07|--|||271,678.18|
|Electronic and other|189,536.30|--|||180,455.67|

|||||
|-|-|-|-|
|equipment||||
|Electronic and otherequipment||||
|||--||
|V. total book value of fixedassets|227,824.37||452,133.85|
|||--||
|Transportation tools|38,288.07|--|271,678.18|
|Electronic and otherequipment||||
||189,536.30|--|180,455.67|

Depreciation in this period amounting to 28,846.25 Yuan; original price transfer from construction in progress to fixed assets amounting as 0.00 Yuan
(2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Depreciation|Impairment|||
|Item|Original book value|||Net book value|Note|
|||accumulative|provision|||

(3) Fixed assets leasing-in by financing lease
In RMB
|||||
|-|-|-|-|
|Item|Original book value|Depreciation accumulative|Net book value|

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

(5) Fixed assets held for sale in period-end
In RMB
||||||
|-|-|-|-|-|
||||Disposal expense||
|Item|Book value|Fair value||Disposal date predicted|
||||predicted||

(6) Fixed assets with un-completed property certificates
||||
|-|-|-|
|Item|Reasons for un-completed certificate|Times expected for certificate completed|

 Explanation on fixed assets:
Nil
18. Construction in process
(1) Construction in process
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Item|Book balance|Impairment|||Impairment||
||||Book value|Book balance||Book value|
|||provision|||provision||
|Total|0.00|0.00||0.00|0.00||

(2) Changes of major projects under construction
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Proportio|||||||
|||||||n of||||Interest|||
||||Increase||||||||||
|||||Transfer||project||Accumulat|including:|capitaliz|||
|||Period-b|during||Other|||ed amount|interest||Capitalsource|Closing|
|Item|Budget|||to fixed||investme|Progress|of interest|capitalized|ation rate|||
|||egin|the||decrease|||||||amount|
|||||assets||nt in|c|apitalizati|amount of|of the|||
||||period|||||on|the year||||
|||||||budget||||year (%)|||
|||||||(%)|||||||
|Total|0.00|0.00|0.00|0.00|0.00|--|--|0.00|0.00|--|--|0.00|

 Explanation on changes of major projects under construction
Nil
(3) Construction in process impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the|Decrease during this|||
|Item|Period-begin|||Period-end|Accrual Reason|
|||period|period|||
|Total|0.00|0.00|0.00|0.00|--|

(4) Progress of material construction in progress
||||
|-|-|-|
|Item|progress|Note|

(5) Explanation on construction in process
Nil
19. Construction materials
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Item|Period-begin|||Period-end|
|||period|period||
|Total||0.00|0.00||

Explanation on construction materials
Nil
20. Disposal of fixed assets
In RMB
|||||
|-|-|-|-|
|Item|Opening book value|Closing book value|Reasons for turn to disposal|

 Explain the progress of disposal of fixed assets transfer over one year
Nil
21. Productive biological assets
(1) Measured by cost
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book balance||Decrease during this period|Closing book balance|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Aquaculture|||||
|Total|0.00|0.00|0.00|0.00|

 (2) Measured by fair value
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book value||Decrease during this period|Closing book value|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Aquaculture|||||
|Total|0.00|0.00|0.00|0.00|

 Explanation on productive biological assets
Nil
22. oil/gas assets
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book balance||Decrease during this period|Closing book balance|
|||period|||
|I. Total original book value|0.00|0.00|0.00|0.00|
|II. Total accumulative loss|0.00|0.00|0.00|0.00|
|III. Total accumulative|||||
|amount of impairment|0.00|0.00|0.00|0.00|
|provision for oil/gas assets|||||

Explanation on oil/gas assets
Nil
23. Intangible assets
(1) Particular about intangible assets
In RMB
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase during the|Decrease during this|Closing book balance|

||||||
|-|-|-|-|-|
|||period|period||
|I. Total original book value|5,271,000.00|||5,271,000.00|
|Trademark|5,271,000.00|||5,271,000.00|
|II. total accumulated|||||
|||376,500.00||376,500.00|
|amortization|||||
|Trademark||376,500.00||376,500.00|
|III. total net book value of|||||
||5,271,000.00|-376,500.00||4,894,500.00|
|intangible assets|||||
|Trademark|5,271,000.00|-376,500.00||4,894,500.00|
|Trademark|||||
|Total book value of intangible|5,271,000.00|||4,894,500.00|
|||-376,500.00|||
|assets|||||
|Trademark|5,271,000.00|-376,500.00||4,894,500.00|

 The amount amortized in this period accounting as 376,500.00 Yuan
(2) Expenditure of project development
In RMB
|||||||
|-|-|-|-|-|-|
||||Decrease during this period|||
|||Increase during the||||
|Item|Period-begin||Record into current|Confirm as intangible|Period-end|
|||period||||
||||gains and losses|assets||
|Total|0.00|0.00|0.00|0.00|0.00|

 The proportion of development expenditure of total expenditure inR&D projects in reporting period
The proportion of intangible assets form by internalR&D in total book value of intangible assets at period-end
For development projects, including single price over one million Yuan occurred in this period and the assessment price have been kept in book, disclosed the assessment institution and way of assessment:
Nil
24. Goodwill
In RMB
|||||||
|-|-|-|-|-|-|
||||||Closing|
|Name of invested company or||Increase during the|Decrease during|||
||Opening balance|||Closing balance|impairment|
|items formed goodwill||period|this period|||
||||||provision|
|Total|0.00|0.00|0.00|0.00|0.00|

 Explain the impairment testing method and withdrawal method for impairment provision of goodwill:
Nil
25. Long-term deferred expense
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase during|Amortization|||Reasons for other|
|Item|Opening amount|||Other decrease|Closing amount||
|||the period|during this period|||decrease|

Explanation on long-term deferred expense:
Nil
26. Deferred income tax assets and deferred income tax liabilities
(1) Net amount of deferred income tax assets and deferred income tax liabilities before deduction
Deferred income tax assets and deferred income tax liability that recognized
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Deferred income tax assets:|||
|Deferred income tax liability:|||

Details of un-recognized deferred income tax assets
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Total|0.00|0.00|

 The deductible losses of un-recognized deferred income tax assets are expired in the follow year:
In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Note|
|Total|0.00|0.00|--|

Details of taxable difference and deductible differences
In RMB
||||
|-|-|-|
||Amount of temporary differences||
|Item|||
||Amount at period-end|Amount at period-begin|
|Items of taxable differences|||
|Subtotal|0.00|0.00|
|Item of deductible differences|||
|Subtotal|0.00|0.00|

 (2) Net amount of deferred income tax assets and deferred income tax liabilities after deduction
Item of deferred income tax assets and liability after mutual offset
In RMB
||||||
|-|-|-|-|-|
|||Deductible of|||
|||||Deductible of|
||Deferred income tax|temporary|Deferred income tax||
|||||temporary differences|
||assets and liability|differences of|assets and liability||
|Item||||of payable taxes after|
||after mutual offset at|payable taxes after|after mutual offset at||
|||||mutual offset at|
||period-end|mutual offset at|period-begin||
|||||period-begin|
|||period-end|||
|Deferred income tax liability||0.00||0.00|

 Details of mutual offset of deferred income tax assets and liability
In RMB
|||
|-|-|
|Item|Amount mutual offset|

Explanation on deferred income tax assets and deferred income tax liabilities
Nil
27. Details of asset impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|Increase during the|Decrease during this period||Closing book|
|Item||||||
||balance|period|Reversal|Written-off|balance|
|I. Bad debt reserve|1,712,635.69|1,356.41|14,601.27||1,699,390.83|
|V. Long-term equity||0.00|||0.00|
|investment provision||||||
|IX. Construction in process|0.00|0.00|||0.00|
|impairment provision||||||
|XI. Oil/gas assets provision|0.00|0.00|||0.00|
|XIII. Goodwill provision|||||0.00|
|Total|1,712,635.69|1,356.41|14,601.27||1,699,390.83|

 Explanation on asset impairment provision:
28. Other non-current assets
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

Explanation on other non-current assets
Nil
29. Short-term loans
(1) Type of Short-term Loans
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

Explanation on short-term loans
Nil
(2) Short-term loans un-paid by expired
In RMB
|||||||
|-|-|-|-|-|-|
|Unit|Loan amount|Loan rates|Using in|Reasons of un-paid|Predicted payment date|
|Total|0.00|--|--|--|--|

Amount paid after balance sheet date.
Explanation on short-term loans: for those expired short-term loans obtained expansion period, explain the expansion condition and new expiration:
Nil
30. Transactional financial liabilities
In RMB
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

Explanation on transactional financial liabilities:
Nil
31. Note payable
In RMB
||||
|-|-|-|
|Types|Period-end|Period-begin|

Amount expired in next accounting period: 0.00 Yuan
Explanation on note payable:
Nil
32. Account payables
(1) Account payables
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Within 1year|24,763,739.37|9,679,002.89|
|1-2 years|256,717.84|256,717.84|
|Total|25,020,457.21|9,935,720.73|

 (2)Accounts payable to shareholders holding5% or above voting shares of the Company
In RMB
||||
|-|-|-|
|Name of the company|Period-end|Period-begin|
|Total|0.00|0.00|

 (3) Explanation on major account payable with over one year age:
Nil
33. Account received in advance
(1) Account received in advance
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Within 1year|5,466,837.05|3,066,936.72|
|1-2 years|58,373.00|58,373.00|
|2-3 years|502,013.59|502,013.59|
|Total|6,027,223.64|3,627,323.31|

 (2)Accounts received in advance to shareholders holding5% or above voting shares of the Company In RMB
||||
|-|-|-|
|Name of the company|Period-end|Period-begin|
|Total|0.00|0.00|

(3) Explanation on major account received in advance with over one year age:
Nil
34. Wages payable
In RMB
||||||
|-|-|-|-|-|
|Item|Opening book balance|Increase during the period|Decrease during this period|Closing book balance|
|I. Wage, bonus,|||||
|allowance and|1,286,682.00|4,723,911.29|4,806,319.29|1,204,274.00|
|subsidy|||||
|V. Dismission|||||
|||17,310.25|17,310.25||
|welfare|||||
|VI. Other|229,942.17|42,235.74|55,196.99|216,980.92|
|Labor union and staff|||||
||229,942.17|42,235.74|55,196.99|216,980.92|
|educational charge|||||
|Total|1,516,624.17|4,783,457.28|4,878,826.53|1,421,254.92|

 Wages payable has 0 Yuan for arrears
Outlay for labor union and staff educational charge amounting as 55,196.99Yuan; non-monetary welfare amounting as 0 Yuan and compensation for dismiss of labor relationship amounting to 17,310.25 Yuan
The wages payable expected to pay and the amount for payment:
Nil
35. Tax payable
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|VAT|829,853.59|596,142.27|
|Business tax|45,715.36|67,744.68|
|Enterprise income tax|782,666.07|93,002,221.34|
|Personal income tax|45,363.67|31,172.70|
|City maintenance and construction tax|15,821.24|15,383.51|
|Educational surtax|6,481.87|6,169.20|
|Embankment fee|5,884.44|6,297.08|
|Housing property tax||53,122.79|
|Total|1,731,786.24|93,778,253.57|

 Explanation on tax payable: if the local taxation bureau agrees mutual adjustment between vary branches and plants, explain taxation calculation:
Nil
36. Interest payable
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

Explanation on interest payable:
Nil
37. Dividend payable
In RMB
|||||
|-|-|-|-|
||||Reasons for un-payment over one|
|Name of the company|Period-end|Period-begin||
||||year|

Explanation on dividend payable:
Nil
38. Other payables
(1) Other payables
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Within 1year|18,316,628.04|26,451,724.68|
|1-2 years|8,503,010.21|8,503,010.21|
|Total|26,819,638.25|34,954,734.89|

 (2) Others payable due to shareholders units holding over5%(5% included) voting shares of the Company at period-end
In RMB
||||
|-|-|-|
|Name of the company|Period-end|Period-begin|
|Total|0.00|0.00|

 (3) Explanation on other account payable with over one year age
Subsidiary EMMELLE borowwed 6.5 million Yuan from Shenzhen Guosheng Energy Investment Development Co., Ltd.
(4) Explanation on major amount for other account payable
|||
|-|-|
|Creditor|Period-end|
|Administrator and common benefits debt|17,838,748.74|
|Shenzhen Guosheng Energy InvestmentDevelopment Co., Ltd.|6,500,000.00|
|Total|24,338,748.74|

39. Accrued liabilities
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Item|Period-begin|||Period-end|
|||period|period||

Explanation on accrued liabilities
Nil
40. Non-current liability due within one year
(1) Non-current liability due within one year
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

(2) Long-term loans due within one year
Long-term loans due within one year
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

In long-term loans due within one year, amount of undue but with expansion time
Top five long-term loans due within one year:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Period-end||Period-begin||
||Starting datefor loans|Termination|||||||
|Unit|||Currency|Rate|Foreign|Local|Foreign|Local|
|||date for loans|||||||
||||||currency|currency|currency|currency|
|Total|--|--|--|--|--|0.00|--|0.00|

 Due loans in long-term loans due within one year:
In RMB
||||||||
|-|-|-|-|-|-|-|
|Unit|Amount loans|Undue date|Annual rate|Using purpose|Unpaid reasons|Paid expected|
|Total|0.00|--|--|--|--|--|

 Amount paid after balance sheet date.
Explanation on long-term loans due within one yea:
Nil
(3) Bond payable due within one year
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Interest|||Interest||
|||||||Interest|Interest paid|||
|||||Issuing|payable at|||payable in|Balance at|
|Name|Value|Issuing date|Terms|||payable in|in this|||
|||||amount|period-begi|||this|period-end|
|||||||this period|period|||
||||||n|||period-end||

Explanation on bond payable due within one year:
Nil
(4) Long-term account payable due within one year
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Amount at||
|Unit|Terms|Initial amount|Rate (%)|Interest reckoned||Loan condition|
||||||period-end||

Explanation on long-term account payable due within one year:
Nil
41. Other current liability
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|

Explanation on other current liability:
Nil
42. Long-term loan
(1) Category of long-term loans
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|

Explanation on category of long-term loans:
Nil
(2) Top five long-term loans
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Period-end||Period-begin||
||Starting datefor loans|Termination|||||||
|Unit|||Currency|Rate|Foreign|Local|Foreign|Local|
|||date for loans|||||||
||||||currency|currency|currency|currency|
|Total|--|--|--|--|--|0.00|--|0.00|

 Explanation on long-term loans: if there has long-term loans from undue with expansion obtained, explain the expansion condition, principle, interest and predicted payment arrange:
Nil
43. Bond payable
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Amount at|||Amount at||
|||||||Interest|Interest paid|||
|||||Issuing|period-begi|||period-end|Closing|
|Name|Value|Issuing date|Terms|||payable in|in this|||
|||||amount|n Interest|||Interest|balance|
|||||||this period|period|||
||||||payable|||payable||

Bond payable including convertible corporatebond’s condition and time for shares transfer:
Nil
44. Long-term account payable
(1) Top five long-term account payable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Unit|Term|Initial amount|Rate|Interest reckoned|Closing balance|Loan condition|

(2)Details of financing lease payable in long-term payable
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Unit|||||
||Foreign currency|RMB|Foreign currency|RMB|
|Total|0.00|0.00|0.00|0.00|

 Amount of guarantee from independent third party for the financing lease of the Company
Explanation on long-term payable:
Nil
45. Specific account payable
In RMB
|||||||
|-|-|-|-|-|-|
||||Decrease|||
|||Increase during||||
|Item|Period-begin||during this|Period-end|Note|
|||the period||||
||||period|||
|Total||0.00|0.00||--|

Explanation on specific account payable:
Nil
46. Other non-current liability
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|

Explanation on other non-current liability
Nil
Item of liability with government subsidy concerned
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount reckoned||||
|||Subsidy|||||
||||into non-operation||Closing|Assets-related/Inco|
|Item|Opening balance|increase during||Other changes|||
||||revenue in the||balance|me-related|
|||this period|||||
||||Period||||
|Total|0.00|0.00|0.00|0.00|0.00|--|

Nil
47. Share capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increased (decreased) in this period||||||
|||||Shares||||
||Period-begin|New shares|||||Period-end|
||||Bonus shares|converted from|Other|Subtotal||
|||issued||||||
|||||public reserve||||
|Total shares|551,347,947.00||||||551,347,947.00|

Explanation on share capital changes, if there has capital increase/decrease in reporting period, disclosed theCPA’s name and
verification documents; for company limited within 3 years operation, explain the net assets before establishment; for those company limited changed from limited liability company, explain the verification condition while established.
No changes in the Period
48. Stock shares
Explanation on stock shares:
Nil
49. Reasonable reserve
Explanation on reasonable reserve
Nil
50. Capital reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease during this||
|Item|Period-begin|Increase during the period||Period-end|
||||period||
|Other capital reserves|627,819,910.12|||627,819,910.12|
|Total|627,819,910.12|||627,819,910.12|

 Explanation on capital reserve
Capital reserve has no changed in the Period
51. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease during this||
|Item|Period-begin|Increase during the period||Period-end|
||||period||
|Statutory surplus reserves|32,673,227.01|||32,673,227.01|
|Total|32,673,227.01|||32,673,227.01|

 Explanation on surplus reserve, if share capital converted from surplus reserve, remedy deficit and dividend distributed, explain relevant resolutions:
Nil
52. General risk provision
Explanation on general risk provision:
Nil
53. Retained profit
In RMB
||||
|-|-|-|
|||Withdrawal or Allocation|
|Item|Amount||
|||Ratio|

||||
|-|-|-|
|Retained profits at the end of last year before|||
||-1,204,837,748.73|--|
|adjustment|||
|Retained profits at the beginning of the year after|-1,204,837,748.73||
|||--|
|adjustment|||
|Add: The net profits belong to owners of patent|||
||1,874,649.46|--|
|company of this period|||
|Less: Withdraw legal surplus reserves||10.00%|
|Retained profit at period-end|-1,202,963,099.27|--|

Details about adjusting the retained profits at the beginning of the year:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained profits at the beginning of the year amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the year amounting to 0 Yuan. 3) The major accounting error correction affects the retained profits at the beginning of the year amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the year amounting to 0 Yuan. 5) Other adjustments affect the retained profits at the beginning of the year amounting to 0 Yuan
The retained profits explain that the company initial public offering bonds should clearly state if the accumulated profits are decided to be shared by old and new shareholders by general meeting of stockholders before issuing; while the company should clearly disclose that the profits in the dividends payable belong to old shareholders after auditing if the general meeting of stockholders decides the accumulated profits are allocated and shared by old shareholders before issuing.
Nil
54. Operating income and cost
(1) Operating income and cost
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Main operating income|82,413,282.09|92,447,037.49|
|Other operating income|3,253,352.31|12,456,483.10|
|Operating cost|80,326,800.62|92,139,173.51|

 (2) Main business (By industries)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Industry|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Sales of bicycle and spare part|82,413,282.09|77,743,826.24|91,085,989.79|86,181,559.63|
|Lease management|0.00|0.00|1,361,047.70|1,644,557.66|
|Total|82,413,282.09|77,743,826.24|92,447,037.49|87,826,117.29|

(3) Main business (By products)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Products|||||
||Operating income|Operating cost|Operating income|Operating cost|
|OEM electro car|62,313,134.43|58,778,064.57|69,701,335.81|66,261,490.66|
|OEM bicycle|19,947,262.69|18,760,980.47|20,816,179.61|19,409,282.99|
|CBC bicycle|94,461.57|112,515.09|281,709.39|233,886.84|
|Other|58,423.40|92,266.11|286,764.98|276,899.14|
|Lease management|0.00|0.00|1,361,047.70|1,644,557.66|
|Total|82,413,282.09|77,743,826.24|92,447,037.49|87,826,117.29|

 (4) Main business (By districts)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|District|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Shenzhen|653,776.07|613,280.36|3,342,588.70|3,366,561.94|
|Other places|81,759,506.02|77,130,545.88|89,104,448.79|84,459,555.35|
|Total|82,413,282.09|77,743,826.24|92,447,037.49|87,826,117.29|

 (5) The operating income of the top five customers of the Company
In RMB
||||
|-|-|-|
|||The percentage in all operating income of the Company|
|Client|Income from main business||
|||(%)|
|Client1|35,935,263.93|41.95%|
|Client2|17,631,991.56|20.58%|
|Client3|11,789,486.13|13.76%|
|Client4|4,662,102.28|5.44%|
|Client5|1,915,476.94|2.24%|
|Total|71,934,320.84|83.97%|

 Explanation on operating income
Nil
55. Contract item income
In RMB
|||||||
|-|-|-|-|-|-|
|||||Gross profit||
||||Cost accumulative|accumulative|Amount with|
||Contract Item|Amount||||
|Fixed price contract|||occurred|recognized (loss|settlement done|
|||||listed with ―-―)||
||Subtotal|0.00|0.00|0.00|0.00|
|||||Gross profit||
||||Cost accumulative|accumulative|Amount with|
||Contract Item|Amount||||
|Fixed price contract|||occurred|recognized (loss|settlement done|
|||||listed with ―-―)||
||Subtotal|0.00|0.00|0.00|0.00|

 Explanation on contract item
Nil
56. Business tax and surcharges
In RMB
|||||
|-|-|-|-|
|Item|Amount of this period|Amount of last period|Taxation standards|
|Business tax|171,604.15|68,052.39|5%|
|City maintenance and construction tax|43,357.58|49,119.69|7% of the payable VAT and business tax|
|Educational surtax|30,969.71|68,767.51|5% of the payable VAT and business tax|
|Total|245,931.44|185,939.59|--|

Explanation on business tax and surcharges
Educational surtax above including2% of the local education surtax
57. Sales expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Salary & social insurance & housing funds|1,246,169.99|1,555,388.25|
|Development charge for new products|45,540.34|920,282.10|
|Market promotion fees||292,689.61|
|AD and promotion expenses||146,500.00|
|Travel expenses|199,145.50|228,460.40|
|Rental cost|262,879.39||
|Other|102,867.60|446,048.88|
|Total|1,856,602.82|3,589,369.24|

58. Administration expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Salary & social insurance & housing funds|1,669,744.66|2,467,176.81|
|Auditing charge|471,698.10|500,000.00|
|Depreciation & amortization|28,846.25|761,100.76|
|Restructuring charge|0.00|31,721,968.92|
|Taxes|118,400.16|886,707.53|
|Social engagement fee|283,390.20|357,650.50|
|Rental cost|1,509,289.55|0.00|
|Other|996,001.12|1,815,127.16|
|Total|5,077,370.04|38,509,731.68|

 59. Financial expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Less: interest income|-113,868.86|-219,377.90|
|Gains/losses from exchange|||
|Other|15,594.44|20,726.63|
|Total|-98,274.42|-198,651.27|

 60. Income of fair value changes
In RMB
||||
|-|-|-|
|Sources generating income of fair value changes|Amount of this period|Amount of last period|

 Explanation on income of fair value changes
Nil
61. Investment income
(1) Particulars about investment income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|

(2) Income of long-term equity investment calculated based on cost
In RMB
|||||
|-|-|-|-|
|Invested company|Amount of this period|Amount of last period|Reasons of change (+,-)|
|Total|0.00|0.00|--|

(3) Income of long-term equity investment calculated based on equity
In RMB
|||||
|-|-|-|-|
|Invested company|Amount of this period|Amount of last period|Reasons of change (+,-)|
|Total|0.00|0.00|--|

Investment income description: It should be introduced if there are significant restrictions to repatriation of investment income; it also should be introduced if there is no this kind of significant restrictions:
Nil
62. Asset impairment loss
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|I. bad debt loss|-13,244.86||
|Total|-13,244.86||

63. Non-operating income
(1) Non-operating income
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into|
|Item|Amount of this period|Amount of last period|current non-recurring|
||||gains/losses|
|Non-current assets disposal gains|39,731.46||39,731.46|
|Including: fixed assets disposal gains|39,731.46||39,731.46|
|Income from fine and penalty||||
|Other|4,862,626.91|66,345.00|4,862,626.91|
|Total|4,902,358.37|66,345.00|4,902,358.37|

 Explanation on non-operating income
(2) Government subsidy reckoned into current gains/losses
In RMB
||||||
|-|-|-|-|-|
||||Assets-related/income-rel|Non-recurring|
|Item|Amount of this period|Amount of last period|||
||||ated|gains/losses (Y/N)|

 64. Non-operating expenditure
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into|
|Item|Amount of this period|Amount of last period|current non-recurring|
||||gains/losses|
|Including: fixed assets disposal losses|5,880.00||5,880.00|
|Other|17,174.00|25,290.00|17,174.00|
|Total|23,054.00|25,290.00|23,054.00|

 Explanation on non-operating expenditure
65. Income tax expense
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Current income tax calculated based on tax law and relevant|||
||789,686.25||
|rules|||
|Total|789,686.25||

66. Calculation of basic earnings per share and diluted earnings per share
The basic earnings per share are the results to divide the current net profits belonging to theCompany’s common stock holders by the weighted average of the issued common stock. The number of newly issued ordinary shares should be calculated and determined issued from the receivable consideration day (It is generally the issue date of the stock) in accordance with the specific terms of the contract.
The numerator of the diluted earnings per share should belong to the current net profits of theCompany’s ordinary shareholders, which is confirmed after adjusting the following factors: (1) the interests of dilutive potential ordinary shares that have been confirmed as the expenses; (2) the earnings or costs generated when converting the diluted potential ordinary shares; and (3) the impact of above adjustments to the related income taxes.
The denominator of the diluted earnings per share is equal to the sum of below two items: (1) the weighted average of the ordinary shares that the parent company has issued in the basic earnings per share; and (2) the weighted average of the ordinary shares increased by converting the assumed dilutive potential ordinary shares into the ordinary share.
When calculating the weighted average of the ordinary shares increased by converting the diluted potential ordinary
shares into the issued ordinary shares, assume the previously issued dilutive potential ordinary shares are converted
at the beginning of the year; and assume the dilutive potential ordinary shares issued in the current year are
converted on the issue date.
(1) Basic EPS and diluted EPS
|||||
|-|-|-|-|
|Profit in the reporting period|Amount at this year|||
||Basic earning per share|diluted earning pershare|Basic earning per share|
|Net profit classed under theCompany’s common shareholders|0.0034|0.0034|-0.0531|
|Net profit classed under theCompany’s common shareholdersafter deduction of non-frequent gainand loss|-0.0049|-0.0049|0.0040|

(2)Calculation process of earning per share and diluted earning per share
The Company has no potential ordinary shares possessing dilution in the Period, thus, diluted EPS equals to basic EPS
①Current net profit attributable to common shareholders in calculation of basic EPS:
|||
|-|-|
|Item|Amount at this year|
|Net profit attributable to common shareholders|1,874,649.46|
|Including: net profit attributable to on-going operation|1,874,649.46|
|Net profit attributable to discontinuing operation||
|Net profit attributable to common shareholders after deduction ofnon-recurring gains/losses|-2,694,064.82|
|Including: net profit attributable to on-going operation|-2,694,064.82|
|Net profit attributable to discontinuing operation||

②Denominator is the weighted common shares issued in calculation of the basic EPS:
|||
|-|-|
|Item|Amount at this year|
|Number of common shares outstanding at period-beginning|551,347,947.00|
|Add: Weighted common shares outstanding in the Period||
|Less: Weighted common shares buy-back in the Period||
|Number of common shares outstanding at Period -end|551,347,947.00|

67. Other consolidated income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|

 Explanation on other consolidated income
Nil
68. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
|||
|-|-|
|Item|Amount|
|Rent and utilities etc.|2,270,088.04|
|Other accounts current|108,349,727.34|
|Total|110,619,815.38|

 Explanation on other cash received in relation to operation activities
‖Other accountscurrent‖ including 92,388,206.44 Yuan enterprise income tax for year of 2013 that allocated by administrator, and has paid in the Period totally
(2) Other cash paid in relation to operation activities
In RMB
|||
|-|-|
|Item|Amount|
|The period expenses, operation expenditure and common benefits debt paid|9,087,945.93|
|Total|9,087,945.93|

 Explanation on other cash paid in relation to operation activities
Nil
(3) Cash received from other investment activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on cash received from other investment activities
Nil
(4) Cash paid related with investment activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash received in relation to financing activities
Nil
(6) Cash paid related with financing activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on cash paid related with financing activities
Nil
69. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
||||
|-|-|-|
|Supplementary information|This Period|Last Period|
|1. Net profit adjusted to cash flow of operation activities:|--|--|
|Net profit|2,361,066.88|-29,280,987.16|
|Add: Assets impairment provision|-13,244.86||
|Depreciation of fixed assets, consumption of oil assets and|||
||28,846.25|761,100.76|
|depreciation of productive biology assets|||
|Amortization of intangible assets|376,500.00|431,431.02|
|Loss from disposal of fixed assets, intangible assets and|||
||-33,851.46|32,000.00|
|other long-term assets(gain is listed with ―-‖)|||
|Financial expenses (gain is listed with ―-‖)||-198,651.27|
|Investment loss (gain is listed with ―-‖)|-18,301,324.25|-18,347,436.27|
|Decrease of operating receivable accounts (increase is listed|||
||101,120,144.74|1,905,896.56|
|with ―-‖)|||
|Increase of operating payable accounts (decrease is listed|||
||-82,792,296.41|24,140,166.28|
|with ―-‖)|||
|Net cash flow arising from operating activities|2,745,840.89|-20,556,480.08|
|2. Material investment and financing not involved in cash|||
||--|--|
|flow|||
|3. Net change of cash and cash equivalents:|--|--|
|Balance of cash at period end|29,360,708.21|31,866,451.72|
|Less: Balance of cash equivalent at year-begin|26,834,171.59|52,395,360.86|
|Net increasing of cash and cash equivalents|2,526,536.62|-20,528,909.14|

 (2) Relevant information about obtaining/disposal of subsidiary and other business unit in report period In RMB
||||
|-|-|-|
|Supplementary information|Amount of this period|Amount of last period|
|I. Relevant information about obtaining subsidiary and other|--|--|

||||
|-|-|-|
|business units:|||
|II. Relevant information about disposal of subsidiary and|||
||--|--|
|other business units:|||

(3) Constitution of cash and cash equivalent:
In RMB
||||
|-|-|-|
|Item|Period-end|Period-begin|
|Ⅰ. Cash|29,360,708.21|26,834,171.59|
|Including: stock cash|204,015.53|49,992.08|
|Bank deposit available for payment at any time|29,156,692.68|26,784,179.51|
|Ⅲ. Balance of cash and cash equivalent at period-end|29,360,708.21|26,834,171.59|

 Explanation on constitution of cash and cash equivalent:
Nil
70. Notes of changes ofowners’ equity
Explain the name and adjusted amount in―Other‖ at end of last period as well as the retroactive adjustment arising from enterprise combination under same control:
Nil
VIII. Accounting treatment of assets securitization
1. Explain the main exchange of assets securitization and its accounting treatment and provision of
bankruptcy-remote
2. Subject of special purpose without controlling rights on hand by actually bear the risks
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Total operationrevenue in thisperiod|||
||Total assets at|Total liability at|Net assets at||Net profit in this||
|Name||||||Note|
||period-end|period-end|period-end||period||

IX. Related Parties and Transactions
1. Parent company of the Company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|Proportion|||
||||||||||Final||
|||||Legal|||of shares|of voting|||
|Parent|Relationsh||Registratio||Business|Registered|||controller|Organizati|
|||Nature||representat|||held to the|right to the|||
|company|ip||n place||nature|capital|||of the|on code|
|||||ive|||Company|Company|||
||||||||||Company||
||||||||(%)|(%)|||
|Shenzhen|Controllin|LLC|||Investment||||||
|Guosheng|||Shenzhen|||RMB 70||||77411579-|
|||||Ji Hanfei|||11.52%|11.52%|Ji Hanfei||
|Energy|g|(wholly-o|||industrial,|million||||2|
|Investment|shareholde|wned legal|||domestic||||||

||||
|-|-|-|
|Developm r|corporatio|business|
|ent Co.,Ltd.|n)|and|
|||material|
|||supply and|
|||marketing|
|||industry|
|||(excluding|
|||the|
|||monopoliz|
|||ed|
|||commodit|
|||y under|
|||special|
|||control)|

Explanation on parent company of the enterprise
Nil
2. Subsidiary of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Legal|||Proportion|Proportion||
||||Registration||Business|Registered|||Organizatio|
|Subsidiary|Type|Nature||representati|||of shares|of voting||
||||place||nature|capital|||n code|
|||||ve|||held|right||
|Shenzhen||||||||||
||||||Sales of|||||
|Emmelle|Controlling|||||2 million||||
|||LLC|Shenzhen|Li Hai|bicycle and||70.00%|70.00%|72617897-5|
|Industrial|subsidiary|||||Yuan||||
||||||spare part|||||
|Co., Ltd.||||||||||

3. Details of joint-venture and affiliated enterprise of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|||
|||||||Equity||||
||||||||of voting|||
|||||||proportion||||
|Invested||Register||Business|Register||rights in|Relationshi|Organizatio|
||Type||Legal rep.|||held by the||||
|company||place||nature|capital||invested|p|n code|
|||||||Company||||
||||||||company|||
|||||||(%)||||
||||||||(%)|||
|I. Joint venture||||||||||
|II. Associated company||||||||||

4. Particulars about other related parties
||||
|-|-|-|
|Other Related parties|Relationship with the Company|Organization code|

Explanation on other related parties:
Nil
5. Related transaction
(1) Statement of commodity purchased and labor service received
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this period||Amount of last period||
|||Pricing way and||Ratio in||Ratio in|
|Related parties|Content|decision making||similar||similar|
||||Amount||Amount||
|||procedures||transactio||transactio|
|||||ns (%)||ns (%)|

 Statement of commodity sales and labor service provided
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this period||Amount of last period||
|||Pricing way and||Ratio in||Ratio in|
|Related parties|Content|decision making||similar||similar|
||||Amount||Amount||
|||procedures||transactio||transactio|
|||||ns (%)||ns (%)|

 (2) Related trusteeship/contract
Statement of related trusteeship/contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Income|
|Assignee/contract|Assigner/contract||||||
|||Assts type|Starting from|Terminated dated|Pricing basis|recognized in this|
|-out party|or||||||
|||||||period|

Statement of entrusted management and contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Income|
|Assignee/contract|Assigner/contract||||||
|||Assts type|Starting from|Terminated dated|Pricing basis|recognized in this|
|-out party|or||||||
|||||||period|

Explanation on related trusted ship and contract
(3) Related leasing
Leasing-out
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Leasing income|
||||||Pricing basis for||
|Lessor|Lessee|Type of leasing|Starting from|Terminated dated||recognized in|
||||||leasing income||
|||||||period|

 Statement of leasing
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Leasing income|
||||||Pricing basis for||
|Lessor|Lessee|Type of leasing|Starting from|Terminated dated||recognized in|
||||||leasing income||
|||||||period|

Explanation on related leasing:
(4) Related guarantee
In RMB
|||||||
|-|-|-|-|-|-|
||||||Whether guarantee|
|Guarantee provided|Guarantee received|Guarantee amount|Starting from|Terminated dated||
||||||implemented or not|

 Explanation on related leasing:
(5) Borrowed funds from related party
In RMB
||||||
|-|-|-|-|-|
|Related parties|Borrowed funds|Starting from|Terminated dated|Note|
|Borrow-in|||||
|Borrow-out|||||

(6) Assets transfer, debt restructure of related party
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount of this period||Amount of last period||
||||||Ratio in||Ratio in|
|Related parties|Type|Content|Pricing principal|||||
||||||similar||similar|
|||||Amount||Amount||
||||||transactio||transactio|
||||||ns (%)||ns (%)|

 (7) Other related transactions
Nil
6. Account receivable/payable for related parties
Account receivable from related parties
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at period-end||Amount at period-begin||
|Item|Related parties|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|

 Account payable for related parties
In RMB
|||||
|-|-|-|-|
|Item|Related parties|Amount at period-end|Amount at period-begin|
||Shenzhen Guosheng Energy|||
|Other payable|Investment Development Co.,|6,500,000.00|6,500,000.00|
||Ltd.|||

X. Share-based payment
1. General particular about share-based payment
In RMB Explanation on share-based payment
2. Share-based payment settled by equity
In RMB
Explanation on share-based payment settled by equity
3. Share-based payment settled by cash
In RMB Explanation on share-based payment settled by cash
4. Share-based payment settled by service
In RMB 5. Particular about amendment of share-based payment and its termination
XI. Contingent events
1. Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
Nil
2. Contingent liability and its financial influence formed from debt guarantee offered to other units
Nil
Other contingent liability and its financial influence:
Nil
XII. Commitments
1. Material commitments
Nil
2. Commitments made previously
Nil
XIII. Subsequent events of balance sheet
1. Explanation on major event after balance sheet date
In RMB
|||||
|-|-|-|-|
|||Influence on financial status and|Reasons for no estimation on|
|Item|Content|||
|||operation results|influence amount|

 2. Profit distribution after balance sheet date
In RMB 3. Other explanation after balance sheet date
1. The impact generated by implementing the accounting standard newly issued or revised by the Ministry of Finance from
1st,
July, 2014
In the beginning of 2014, the Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement", "Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements (revision2014)‖, "Accounting Standards for Business Enterprises No. 9 - Employee Remuneration (Revision 2014)", "Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements
(Revision2014)‖, "Accounting Standards for Business Enterprises No. 40 - Jointly Venture Arrangement",
"Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments (Revision 2014) " and
"Accounting Standards for Business Enterprises No. 41 - Interests Disclosure in Other Entities" respectively based on Cai Kuai[2014] No. 6, 7, 8, 10, 11, 14, 16, which are required to be implemented in all the enterprises which carry out the Accounting Standards for Business Enterprises from
1st,
July, 2014, and encourage the companies listed overseas to perform in advance.
Since July
1st,
2014, the Company will start to implement the above-mentioned criteria and change the relevant accounting policies in accordance with the provisions of the above-mentioned criteria. The followings are the main contents of the changes in accounting policies:
①Accounting Standards for Business Enterprises No. 9 - Employee Remuneration (Revision 2014)" completely specified the accounting treatment of post-employment benefits; the post-employment benefit plans are classified as defined contribution plans and defined benefit plans. The defined contribution plans are the post-employment benefit plans that the enterprises no longer assume the obligation after paying the fixed charges to the separate funds; the defined benefit plans are the post-employment benefit plans except the defined contribution plans. The enterprises shall confirm the amounts to be paid as the liabilities by calculating based on the defined contribution plans when the employees provide services for the enterprises, and reckon it in the current profit and loss or the associated asset costs; for the defined benefit plans, the enterprises should calculate the obligations generated by the defined benefit plans by adopting the unit method for the expected cumulative benefits and in accordance with the appropriate assumptions, attribute them to the time that the employees provide services according to the formula determined by the defined benefit plans, and reckon them in the current profit and loss, while the net indebtedness or the changes generated by the net indebtedness by re-calculating the defined benefit plans shall be reckoned in other consolidated income. In addition, the revised criteria also enriched the accounting treatment standards for the short-term remuneration, replenished the accounting treatment provisions for the dismission welfare, and introduced other benefits for the permanent staff so as to completely standardize the accounting treatment ofemployees’ benefits.
②"Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements (revision2014)‖ further standardizes the presentation of the financial statements, and completely revised the going concern assessment, the normal operating cycle, and the replenishment for the notes and disclosure contents, and defines the "The further information of profit statement of which the costs are classified in accordance with the nature" as a mandatory disclosure. The standard requires to divide the other consolidated incomes into two categories in the statements of other consolidated incomes: (1) The follow-up projects will not be reclassified to the profits or losses; (2) The follow-up projects may be reclassified to the profits or losses when meet the specified conditions.③The consolidation scope of the consolidated financial statements should be confirmed on the basis of control in accordance with "Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements (Revision2014)‖. The standard establishes a single model to determine the existence of control, and specifies the three elements required to form the control to the investees: (1) possesses the power over the investees; (2) enjoys the changeable returns by participating in the relevant activities of the investees; (3) be capable of utilizing the power over the investees to affects its return amount. On this basis, this standard gives more guidelines for judging the control power than the one. In accordance with the provisions of this standard, the management of the Company
needs to use the significant judgments to determine the control power over the investees.
④"Accounting Standards for Business Enterprises No. 40 - Jointly Venture Arrangement" standardizes the affirmation, classification and accounting of one arrangement to the joint control with two or more participants. The joint venture arrangements are classified as pooling of interests and cooperative enterprises in accordance with the rights and obligations of the joint venture parties. The joint operations refer to the joint venture arrangements that the joint venture parties enjoy the underlying assets and assume the relevant liabilities. The cooperative enterprises refer to the joint venture arrangements that the joint venture parties only enjoy the rights of the net assets of this arrangement. This standard requires the joint venture parties to calculate the investments of the cooperative enterprises by using the equity method, and affirm the assets (including the share of any assets held jointly), its liabilities (including the share of any liabilities incurred jointly), the incomes (including the share of the incomes generated by the selling and output of the joint operations, and the expenses (including the share of the expenses occurred during the joint operations).
⑤ "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement" standardizes the definition of fair value, specifies the method of fair value measurement, and divides the fair value measurement into three levels in accordance with the input value used by the fair value measurement, and makes detailed requirements to the disclosure of relevant information of the fair value measurement. However, this standard does not change the requirements of other accounting standards about when the fair value measurement should be used.
⑥The standard scope of "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments (Revision 2014)" has been reduced compared with the original standards, which only specifies the recognition and measurement of the long-term equity investments in the subsidiaries, cooperative enterprises, and joint ventures. The long-term equity investments that the investors do not have control, joint control or significant influence to the invested units shall belong to the standard scope of the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of the Financial Instruments". It also introduces a number of other important changes, including emphasizing that the "book value" followed by the financial accounting of long-term equity investments formed by business merger under the same control refers to the share of the book value of the combinedparty’s equities in the consolidated financial statement of the final control party"; clarify the other changes of the owner's equities except for the net profits and losses, other comprehensive incomes and profit distribution of the investors to the invested units, adjusts the book value of the long-term equity investments and reckons in the owners' equities; adjusts the joint requirements for converting the accounting methods; adds the management to investments on the joint ventures; introduces the option to the fair value measurement of the joint venture investments held by the subordinate investors.
⑦ "Accounting Standards for Business Enterprises No. 41 - Interests Disclosure in Other Entities" is appropriate for the disclosure of interests in the subsidiaries, joint arrangements, joint ventures and the structuring entities not included in the consolidated financial statements. The standard requires to disclose the significant judgments and assumptions of the control of implementation, joint control or significant influence to other entities, and the changes to these judgments and assumptions; and respectively specifies the detailed requirements to the disclosure about the interests in the subsidiaries, the interests in the joint arrangements or joint ventures, and the interests in the structuring entities not included in the consolidated financial statements. The information disclosed according to the
requirements of this standard shall help the users of the financial statements to evaluate theinterests’ nature of the
Company in other entities and the relevant risks, as well as the impacts of these interests on the Company's financial condition, business performance and cash flows. After this standard goes into effect, the information disclosed before the implementation date of this standard in the Company's comparative financial statements shall be adjusted in accordance with the provisions of this standard (Except for the disclosure of the structuring entities not included in the consolidated financial statements).
XIV. Other major event
1. Non-monetary assets exchange
2. Debt reorganization
3. Enterprise combination
4. Leasing
5. Financial instrument issued outside and convertible to shares in report period
6. Assets and liability measured by fair value
In RMB
|||||||
|-|-|-|-|-|-|
||||Changes of fair|||
|||Gains/losses of||||
||Amount at||value reckoned into|Impairment accrual|Amount at|
|Item||change of fair value||||
||period-begin||equity|in this term|period-end|
|||in this term||||
||||accumulatively|||
|Financial assets||||||
|Productive biological|0.00||||0.00|
|asset||||||
|Total|0.00||||0.00|
|Financial liability|0.00||||0.00|

 7. Foreign currency financial assets and financial liability
In RMB
|||||||
|-|-|-|-|-|-|
||||Changes of fair|||
|||Gains/losses of||||
||Amount at||value reckoned into|Impairment accrual|Amount at|
|Item||change of fair value||||
||period-begin||equity|in this term|period-end|
|||in this term||||
||||accumulatively|||
|Financial assets||||||
|Subtotal of financial assets|0.00||||0.00|
|Financial liability|0.00||||0.00|

8. Main content of pension plan and major changes
9. Other
(1) Being approved by Shenzhen Stock Exchange, trading stock of the Company cancel the delisting risk warning since 14 May 2014
(2) The final settlement for payable enterprise income tax for year of 2013 has paid in the Period, that is 92,388,206.44 Yuan
XV. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end||||Period-begin||||
|Types|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio|
|Account receivable of bad debt provision withdrawal by combination|||||||||
|Account receivable of bad|||||||||
|||100.0||||100.00|||
|debt provision withdrawal|292,106.00||||245,382.00||||
|||0%||||%|||
|by combination|||||||||
|||100.0||||100.00|||
|Subtotal of group|292,106.00||||245,382.00||||
|||0%||||%|||
|Total|292,106.00|--||--|245,382.00|--||--|

 Explanation for category of account receivables:
Based on the size, business nature and customer settlement condition of the company, the company decides that RMB 5 million of accounts receivable is important single sum of payment. For an account receivable without depreciation at the end of the period, the bad debt allowance is accrued on the basis of account aging analysis method.
Account receivable with single significant amount and withdrawal bad debt provision separately at period end
□Applicable√ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Age|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Ratio||Amount|Ratio||
|Within 1year|||||||

||||||||
|-|-|-|-|-|-|-|
|Including:|--|--|--|--|--|--|
|||100.00|||100.00||
|Within 1year|292,106.00|||245,382.00|||
|||%|||%||
|Subtotal of||100.00|||100.00||
||292,106.00|||245,382.00|||
|Within 1year||%|||%||
|Total|292,106.00|--||245,382.00|--||

In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable
□Applicable√ Not applicable
Accounts with single significant amount and bad debts provision accrued individually at end of period
□Applicable√ Not applicable
(2) Reversal or recovery of account receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determination|Accumulated provision of||
|Contents of account|Reason for reversal of|||Amounts reversed or|
|||of original bad debt|bad debt reserve before||
|receivables|recovery|||recovered|
|||reserve|reversal or recovery||
|Total|--|--|0.00|--|

Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reason|
|receivables|||||
|Total|0.00|0.00|--|--|

Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
Nil
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of account||||Arising from related|
|||Time of write-off|Amount written off|Reason for write-off||
|company|receivables||||transactions (Y/N)|
|Total|--|--|0.00|--|--|

Explanation for write-off of account receivables:
Nil
(4)Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name of the company||Bad debt provision|Book balance|Bad debt provisionaccrual|
||Book balance||||
|||accrual|||
|Total|0.00|0.00|0.00|0.00|

 (5) Properties and contents of other accounts receivable with large amount
Nil
(6) Top 5 account receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with the|||Proportion in total|
|Name of the company||Amount|Terms||
||Company|||account receivables (%)|
|Shenzhen Emmelle|||||
||Controlling subsidiary|292,106.00|Within 1year|100.00%|
|Industrial Co., Ltd.|||||
|Total|--|292,106.00|--|100.00%|

 (7) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total account|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|
|Shenzhen Emmelle Industrial||||
||Controlling subsidiary|292,106.00|100.00%|
|Co., Ltd.||||
|Total|--|292,106.00|100.00%|

 (8) Transferring amount is 0 Yuan for accounts receivable not conforming to terminate the confirmation. (9) It is required to introduce the relevant transaction arrangement for asset securitization taking accounts receivables as the standard
Nil
2. Other accounts receivable
(1) Other accounts receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Period-end||||Period-begin||||
|Types|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio|
|Other receivable of bad debt provision withdrawal by combination|||||||||
|Other receivable of bad debt|17,420,493.48||||||||
|||100.0||||100.0|||
|provision withdrawal by|||1,356.41|0.01%|116,990,372.76||||
|||0%||||0%|||
|combination|||||||||
||17,420,493.48|100.0||||100.0|||
|Subtotal of group|||1,356.41|0.01%|116,990,372.76||||
|||0%||||0%|||
|Total|17,420,493.48|--|1,356.41|--|116,990,372.76|--||--|

 Explanation for category of other receivables:
Based on the size, business nature and customer settlement condition of the company, the company decides that RMB 5 million of other accounts receivable is important single sum of payment. For the other account receivable without depreciation at the end of the period, the bad debt allowance is accrued on the basis of account aging analysis method.
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
□Applicable√ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Period-end|||Period-begin|||
|Age|Book balance|||Book balance|||
||||Bad debt provision|||Bad debt provision|
||Amount|Ratio||Amount|Ratio||
|Within 1year|||||||
|Including:|--|--|--|--|--|--|
|||100.00|||100.00||
|Within 1year|17,420,493.48||1,356.41|116,990,372.76|||
|||%|||%||
|Subtotal of||100.00|||100.00||
||17,420,493.48||1,356.41|116,990,372.76|||
|Within 1year||%|||%||
|Total|17,420,493.48|--|1,356.41|116,990,372.76|--||

In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□Applicable√ Not applicable
Other receivable with single minor amount while withdrawal bad debt provision separately at end of period
□Applicable√ Not applicable
(2) Reversal or recovery of other receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determinationof original bad debtreserve|Accumulated provision ofbad debt reserve beforereversal or recovery||
||Reason for reversal of|||Amounts reversed or|
|Contents of other receivables|||||
||recovery|||recovered|
|Total|--|--|0.00|--|

Provision for bad debt reserve for other receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion|Reason|
|receivables|||||
|Total|0.00|0.00|--|--|

Explanation for other receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other||||Arising from relatedtransactions (Y/N)|
|||Time of write-off|Amount written off|Reason for write-off||
|company|receivables|||||
|Total|--|--|0.00|--|--|

Explanation for write-off of other receivables:
Nil
(4) Other receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Period-end||Period-begin||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|
|Total|0.00|0.00|0.00|0.00|

(5) Nature or content of other receivables with significant amount
Contact with EMMELLE, refers to the current accoutns
(6) Top 5 other receivable
In RMB
||||||
|-|-|-|-|-|
|||||Percentage in total|
||Relationship with the||||
|Name of the company||Amount|Terms|accounts receivable|
||Company||||
|||||amount (%)|
|Shenzhen Emmelle|||||
||Controlling subsidiary|16,975,813.48|Within 1year|97.45%|
|Industrial Co., Ltd.|||||
|Total|--|16,975,813.48|--|97.45%|

 (7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total other|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|
|Shenzhen Emmelle IndustrialCo., Ltd.||||
||Controlling subsidiary|16,975,813.48|97.45%|
|Total|--|16,975,813.48|97.45%|

 (8)
Transferring amount is 0 Yuan for other accounts receivable not conforming to terminate the confirmation. (9) It is required to introduce the relevant transaction arrangement for asset securitization taking other accounts receivables as the standard
Nil
3. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportio|Explanati||Impairme||
|||||||Proportion of share||||||
||||||||n of|on on the||nt||
|||||Increase/d|||voting|incongruit|Impairme|provision|Cash|
|Invested|Calculatio|Investme|Opening||Closing|holding in||||||
|||||ecrease(+,|||rights in|y in share|nt|of|bonus this|
|company|n method|nt cost|balance||balance|invested||||||
|||||-)|||invested|holding|provision|accruing|period|
|||||||company(%)||||||
||||||||company|proportio||this||
||||||||(%)|n and||period||

||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||voting||
||||||||proportio||
||||||||n in||
||||||||invested||
||||||||company||
|Shenzhen|||||||||
|Emmelle|Cost|2,000,000|2,000,000|2,000,000||||1,389,620|
||||||70.00%|70.00%|||
|Industrial|method|.00|.00|.00||||.27|
|Co., Ltd.|||||||||
|||2,000,000|2,000,000|2,000,000||||1,389,620|
|Total|--||||--|--|--||
|||.00|.00|.00||||.27|

Explanation on long-term equity investment
Nil
4. Operating income and cost
(1) Operating income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Main operating income||344,800.01|
|Other operating income|3,703,766.10|13,184,719.87|
|Total|3,703,766.10|13,529,519.88|
|Operating cost|2,536,032.31|4,562,602.46|

 (2) Main business (by industry)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Industry|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Sales of bicycles|||344,800.01|296,730.28|
|Total|||344,800.01|296,730.28|

 (3) Main business (by product)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Product|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Bicycles|||344,800.01|296,730.28|
|Total|||344,800.01|296,730.28|

(4) Main business (by districts)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Districts|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Shenzhen|||344,800.01|296,730.28|
|Total|||344,800.01|296,730.28|

 (5) The operating income of the top five customers of the Company
In RMB
||||
|-|-|-|
|||The percentage in all|
|Client|Total operation revenue|operating revenue of the|
|||Company (%)|
|Tenant|2,271,523.36|61.33%|
|Total|2,271,523.36|61.33%|

 Explanation on operating income
5. Investment income
(1) Particulars about investment income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|

 (2) Income of long-term equity investment calculated based on cost
In RMB
|||||
|-|-|-|-|
|||Amount of last||
|Invested company|Amount of this period||Reasons of change (+,-)|
|||period||
|Total|0.00|0.00|--|

(3) Income of long-term equity investment calculated based on equity
In RMB
|||||
|-|-|-|-|
|||Amount of last||
|Invested company|Amount of this period||Reasons of change (+,-)|
|||period||
|Total|0.00|0.00|--|

Explanation on investment income:
Nil
6. Supplementary information of cash flow statement
In RMB
||||
|-|-|-|
|Supplementary information|This Period|Last Period|
|1. adjust the net profits to be cash flow for operating activities|--|--|
|Net profits|739,675.49|-28,904,684.82|
|Add: Assets impairment provision|1,356.41||
|Fixed assets depreciation, oil-and-gas assets loss , productive living|||
||8,335.70|782,254.44|
|beings depreciation|||
|Intangible assets amortization|376,500.00|431,431.02|
|Financial costs(profits fill with ―-― )||-102,659.42|
|Stock decreases(increases fill with ―-― )||296,730.28|
|Operating receivables decrease(increases fill with ―-― )|99,523,155.28|4,468,992.36|
|Operating payables increase(decreases fill with ―-― )|-100,323,783.61|-316,406.49|
|Cash flow net amount generated by operating activities|325,239.27|-23,344,342.63|
|2. significant investment financial activities not involving and cash|||
||--|--|
|deposit and withdrawal|||
|3. net changes of cash and cash equivalents|--|--|
|Ending balance of cash|1,089,776.09|8,088,545.87|
|Decrease: opening balance of cash equivalents|1,080,836.82|31,432,888.50|
|Net increase of cash and cash equivalents|8,939.27|-23,344,342.63|

 7. Assets and liabilities enter into the account book with assessed value by counter purchase
Assets and liability reckoned into book with fair value while counter purchased
In RMB
||||||
|-|-|-|-|-|
|||Method to determine fair|||
|Item|Fair value||Process of fair value|Original Book value|
|||value|||

Long-term equity investment from counter purchased
In RMB
||||
|-|-|-|
||Amount of long-term equity investment||
|Item||Process of long-term equity investment|
||form by counter purchased||

XVI. Supplementary Information
1. Current non-recurring gains/losses
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|||
||33,851.46||
|write-off that accrued for impairment of assets)|||
|Other non-operating income and expenditure except for the|||
||4,845,452.91||
|aforementioned items|||
|Less: Impact on income tax|280,473.51||
|Impact on minority shareholders’ equity (post-tax)|30,116.58||
|Total|4,568,714.28|--|

Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses□Applicable√ Not applicable
2. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
||Amount in this period|Amount in last period|Period-end|Period-begin|
|Chinese GAAP|1,874,649.46|-29,283,608.20|8,877,984.86|7,003,335.40|
|Items and amount adjusted by IAS|||||
|IAS|1,874,649.46|-29,283,608.20|8,877,984.86|7,003,335.40|

 (2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
||Amount in this period|Amount in last period|Period-end|Period-begin|
|Chinese GAAP|1,874,649.46|-29,283,608.20|8,877,984.86|7,003,335.40|
|Items and amount adjusted by foreign accounting rules|||||
|Foreign accounting rules|1,874,649.46|-29,283,608.20|8,877,984.86|7,003,335.40|

 Nil
(3) Reasons for the differences of accounting data under accounting rules in and out of China
Nil
3. REO and earnings per share
In RMB
|||||
|-|-|-|-|
|||Earnings per share||
|Profits during report period|Weighted average ROE (%)|||
|||Basic EPS|Diluted EPS|
|Net profits belong to common stock||||
||23.61%|0.0034|0.0034|
|stockholders of the Company||||
|Net profits belong to common stock||||
|stockholders of the Company after deducting|-33.93%|-0.0049|-0.0049|
|nonrecurring gains and losses||||

4. Abnormalities and reasons of the accounting statement items of the Company
||||
|-|-|-|
|Item|Amount changes|Changes ratio (%)|
|Notes receivable|9,814,204.40||
|Account receivabels|-4,852,489.17|-68.73|
|Account paid in advance|766,346.80|431.41|
|Other receivabels|-106,834,961.91|-99.48|
|Inventory|18,301,324.25|402.66|
|Fixed assets|224,309.48|98.46|
|Account payable|15,084,736.48|151.82|
|Account received in advance|2,399,900.33|66.16|
|Tax payable|-92,046,467.33|-98.15|
|Other payables|-8,135,096.64|-23.27|
|Minority interest|482,037.04|69.31|
|Sales expenses|-1,732,766.42|-48.27|
|Administration expenses|-33,432,361.64|-86.82|
|Finance expenses|100,376.85|-50.53|
|Non-operation income|4,836,013.37|7,289.19|
|Gains/losses of minorityshareholders|479,416.00|18,291.06|

Section XI. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person in charge of accounting organ;
2. Original audit report with seal of the accounting firm and signature and seal of CPAs;
3. English version of the Semi-Annual Report 2014