Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Semi-Annual Report for Year of 2018
August 2018
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (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.
Lu Lianxing, Principal of the Company, Zhao Minkun, person in charge of accounting works and Lei Lixin, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2017 Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The forward-looking statement set out in the annual report relating to the future plan of the Company does not constitute the material commitment of the Company for its investors. Therefore, investors and related stakeholders shall hold sufficient awareness of the risks and should understand the difference between plan, expectation and commitment.
Certain risks that may exist in theCompany’s business operation and countermeasures adopted by the Company are disclosed in the clause “X. Risks
and countermeasures” in the fourth section hereof headed “Discussion and Analysis on Operation”, which shall be brought to attention of investors. This report has been prepared in Chinese and English version respectively. In the event of difference in interpretation between the two versions, Chinese report shall prevail.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either
Contents
Semi-annual Report 2018 .................................................................................................................. 1 Section I Important Notice and Paraphrase .................................................................................. 6 Section II Company Profile and Main Finnaical Indexes .............................................................. 6 Section III Summary of Company Business .................................................................................... 9 Section IV Discussion and Analysis of Business ............................................................................ 19 Section V Important Events ............................................................................................................ 18 Section VI Changes in shares and particular aboutshareholders……………………………...30 Section VII Preferred Stock ............................................................................................................ 31 Section VIII Particulars about Directors, Supervisors and Senior Executives .......................... 32 Section IX Corporate Bond ............................................................................................................. 56 Section X Financial Report ............................................................................................................. 33 Section XI Documents available for reference ............................................................................ 134
Paraphrase
||||
|-|-|-|
|Items|Refers to|Contents|
|“The Company” or “Company”|Refers to|Shandong Zhonglu Oceanic Fisheries Co., Ltd.|
|||Shandong State-owned Assets Investment Holding Company|
|"Shandong State-owned Assets Investment"|Refers to||
|||Limited|
|"Luxin Group"|Refers to|Shandong Luxin Investment Holding Company Limited|
|||State-owned Assets Supervision and Administration Commission|
|"SASACP"|Refers to||
|||of Shandong Provincial Government|
|“CSRC”|Refers to|China Securities Regulatory Commission|
|“The report”|Refers to|Semi-Annual Report for 2018 compiled by the Company|

Section II Company Profile and Main Finnaical Indexes
I. Company profile
|||||
|-|-|-|-|
|Short form of the stock|Zhonglu-B|Stock code|200992|
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name of the Company (in|山东省中鲁远洋渔业股份有限公司|||
|Chinese)||||
|Short form of the Company||||
||中鲁远洋|||
|(in Chinese)||||
|Foreign name of the Company||||
||Shandong Zhonglu Oceanic Fisheries Company Limited|||
|(if applicable)||||
|Short form of foreign name of||||
||ZLYY|||
|the Company (if applicable)||||
|Legal representative|Lu Lianxing|||

II. Person/Way to contact
||||
|-|-|-|
||Secretary of the Board|Rep. of security affairs|
|Name|Li Ming|Li Ying|
||No.65 Haier Road, Laoshan District,|No.65 Haier Road, Laoshan District,|
|Contacts add.|||
||Qingdao, Shandong Province|Qingdao, Shandong Province|
|Tel.|0532-55717968|0532-55715968|
|Fax.|0532-55719258|0532-55719258|
|Email|zl000992@163.com|zl000992 @163.com|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□Applicable√Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no changed in reporting period, found more in Annual Report 2017
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2017.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y|
|Operating revenue (RMB)|440,322,776.97|440,178,091.75|0.03%|
|Net profit attributable to shareholders of|22,601,899.21|32,001,590.86||
||||-29.37%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting non-|22,614,705.64|31,391,015.10|-27.96%|
|recurring gains and losses(RMB)||||
|Net cash flow arising from operating|21,814,612.31|17,876,156.54||
||||22.03%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|0.08|0.12|-33.33%|
|Diluted earnings per share (RMB/Share)|0.08|0.12|-33.33%|
|Weighted average ROE|3.14%|5.05%|-1.91%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|1,103,935,265.57|1,065,483,763.80|3.61%|
|Net assets attributable to shareholder of|733,711,967.66|703,769,793.95||
||||4.25%|
|listed company(RMB)||||

V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company 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
VI. 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|-18,990.79||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|433,292.74||
|including the subsidy enjoyed in quota or ration according to|||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|-427,108.38||
|aforementioned items|||
|Total|-12,806.43|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section III Summary of Company Business
I Main businesses of the company in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is a comprehensive fishery enterprise integrated with ocean-going fishing, ocean refrigerated transport, and refrigeration, processing and trading of aquatic products, its main businesses involve all major aspects of the industry chain.
1. Ocean-going fishing
During the reporting period, the company has owned a total of 22 vessels for ocean-going fishing, including 7 large- scale tuna seiners, 13 large ultra-low temperature tuna long liners, and 2 medium-sized trawlers, which have been respectively working in Indian Ocean and the Garner in Atlantic Ocean. During the reporting period, the international tuna market fluctuated considerably with seine prices down by about30% and ultra-low temperature longline fishing prices down by about20% as compared to the end of last year, respectively. According to the market changes and the actual sea production, the Company scientifically dispatched, rationally allocated, and actively developed domestic and international markets. In the aspect of longline fishing, the Company made prompt adjustment to operating strategies, furthered its potential, conducted legal operation and maintained good production and operation efficiency based on the changing production and market environment. With respect to seine fishery, four seine boats have been put into operation in the Atlantic sea, reaching the expected results. Besides, other three boats will be put into operation in the second half year, which will greatly improve its capability in seine fishery. Trawling fishing projects in Ghana recorded such production capacity approximately the same to the corresponding period of previous year, while the proportion of low value fishes increased contributing relatively low output value. Besides, recession of trawling fishing resources and aging of vessel conditions were also the major reasons for decreasing efficiency.
2. Refrigerated transport
During the reporting period, the Company's seven ocean-going refrigerated transport vessels engaged in operational services, actively implementing the overall development strategy deployment of the Company. By adherence to the annual budget target and short-term and long-term tasks to secure steady development, the Company conducted various actions to ensure satisfaction of the economic indicators: careful organization to implement responsibility; strengthen study and training of fishing workers and enhance the management level; maintain customer resources and steady development; emphasize corporate management to pursue management benefit.
3. Refrigeration processing trade
In reporting period, refrigeration processing trade of the Company mainly focoused on: The first was to insist on internal absorption and external introduction, give full play to advantages of industrial clusters, resist the risks and face the market development together with fishing industry, strengthen efforts to the return shipping and deep processing of tuna, the import volume& value increased from a year earlier; form a processing industry chain by centering on Zhonglu food, and give a real play to the distributing centre as the deep-processing of deep-sea fishing products and cold-chain logistics base in Shandong Province and the tuna trading center of China, and had far-
reaching significance to refine and strengthen the tuna industry chain. The second was to focus on improving the automatic mechanization standards, strive to improve the important processes and key processes in the automatic mechanization standards; the Company actively promoted the "Five Fast Policy", namely fast in production, refrigeration, loading, filling and cutting, through which, it was enabled to increase production capacity, reduce waste of raw materials, stabilize product quality and reduce the operating costs. Third, through reducing production personnel, raw material procurement and the number of working days, the Company enhanced the competitiveness by adjusting the model of export sales, fine management, adjusting the product structure, market expansion and products development. Fourth, it broadened the publicity channels, upgraded product packaging, improved the sales model, and created the featured "Higgins" tuna brand.
II. Major changes in main assets
1. Major changes in main assets
|||
|-|-|
|Major assets|Note of major changes|
|Equity assets|No major change.|
|Fixed assets|No major change.|
|Intangible assets|No major change.|
|Construction in progress|No major change.|

2. Main overseas assets
√Applicable□Not applicable
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Control||Ratio of the|Whether has|
||||||measures to||overseas|major|
|||||Operating||Earnings|||
|Content|Reasons|Assets scale|Location||ensure the||assets in net|impairment|
|||||mode||status|||
||||||safety of||assets of the|risks or not|
||||||assets||Company|(Y/N)|
|HABITAT|Wholly-||||||||
|INTERNATI|owned||||Vessels and||||
|||221,592,336.||Independent||11,521,734.5|||
|ONAL|subsidiary||Panama||crew||25.76%|N|
|||24||operation||3|||
|CORPORATI|established||||insurance||||
|ON|aboard||||||||
||||||A||||
|ZHONG|Wholly-||||professional||||
|GHA|owned||||management||||
|||175,797,773.||Independent|||||
|FOODS|subsidiary||Rep. Ghana||team|-7,635,354.50|20.44%|N|
|||83||operation|||||
|COMPANY|established||||overseas||||
|LIMITED|aboard||||posting,||||
||||||vessels and||||

||
|-|
|crew|
|insurance|

III. Core competitive-ness analysis
Whether or not the Company complies with disclosure requirement of the special industry
No
The Company is an outgoing comprehensive oceanic fishery enterprise, established in July 1999 with the approval fromPeople’s Government of Shandong province. We have completed industry chain and we are the leading enterprise of oceanic fishery for the Shandong Province. As a comprehensive fishery enterprise, the company's core competitiveness is mainly reflected in the following aspects:
Firstly, the company is a comprehensive fishery enterprise integrating deep-sea fishing, refrigerated transport, and refrigeration and processing and trading of aquatic products, its main business involves all key links of industry chain, and the businesses among all operating entities are highly related, possess the conditions for overall collaborative operation, and provides guarantee for strengthening and extending the industrial chain strategy; Secondly, as one of the enterprises engaged in deep-sea fishing business at the earliest in China, the company starts the production and operation early with high starting point, and high-quality talents and assets. After many years of professional management, the company has accumulated a large number of professional talents covering all fields of deep-sea fishing. For both vessel numbers, gross tonnage and profitability of current refrigerated transport fleet, the Company occupies the national leading level. We own biggest super-low temperature cold storage and raw food processing factory in China. The advantage of tuna processing and trading ability are being strengthen by the Tuna Trading Center and new Tuna E-Trading Platform System; the 30000 tons variable-temperature cold storage and supporting facilities in tide refrigerated logistic center adopted many new technology and operates well;
Thirdly, the distant fishery, we mainly operates, is the parts of “going out” strategy and maritime strategy of the country, and also it is the part of Blue Economic Zone Plans in Shandong Province. The distant fishery still has a development opportunity in way of depth adjustment. The products of distant water finseries are mainly out from the deep ocean, which have a favorable market prospect for being pure natural, high-quality and unconditioned secure.
Fourthly, the Company enlarge the tuna seine fleet in Atlantic, under the shelter of tight regulations from WCPFC in WCPO and ICCAT, the tuna seine business will have a stable growth.
The above mentioned factors were provided a powerful strategic support for the development of the Company; the Company will make good use of these strategic resources, creating innovative, and participated in the construction of new-aged energy transform actively, accelerate the strategic transformation, and vigorously implement the industrial chain extension projects to upgrade the influence and completive in deep-sea fishing market in and out of China.
Section IV Discussion and Analysis on Operation
I. Introduction
During the reporting period, the Company has earnestly implemented the spirit of its annual working conference, aiming at the complete completion of all budgetary targets. Based on the reality, it made progressive, active and effective actions to focus on development of ocean fishing business, consolidate refrigerated transportation business, explore processing business in domestic and overseas markets and achieved stable operation notwithstanding the various negative factors.
(I)Business review during the reporting period
1.Refrigerated transport leasing sector: the Company ensured no decrease in rental revenue by increasing voyage rate with active actions made to conquer the negative factors such as depressed international shipping market and decreased goods resources suitable for shipping.
Efforts have been made to expand other freight services and transport channels, enhance ship service awareness and service quality, maintain customer resources in the fierce market competition, and ensure market share. It recorded operating income of RMB44,910,400, with a year-on-year decrease of10.19%; and recorded net profit of RMB13,003,800, with an year-on-year increase of9.92%.
2. Ocean fishing business: the Company made scientific deployment in longline fishin, and made timely adjustment to operating strategy according to fishery conditions, fishing floods and market changes. In addition to individual operation of each boat, the Company also focused on operation of main fishing ground, effectively guaranteed the fishing output. In relation to tuna seine fishing business, the Company effectively improved output by virtue of scientific management and application of remote monitoring electric buoy and artificial network against the negative factors, such as unfamiliarity to fishing conditions, relatively strange fishing ground and temporary fishing- suspension control. The Company achieved operation revenue of RMB 93,937,400 with a y-o-y declined of9.05%; and recorded net profit of RMB4, 878,700 from this business segment, down by64.90% as compared to the same period of previous year.
3. Refrigerated processing and trading of aquatic products segment: through actively implementing the working requirement of "take innovation as the main line, entrepreneurship as the foothold, and transformation as the breakthrough", the Company optimized the marketing approaches, explored and innovated the sales model, achieved the integration of “micro-business+ e-commerce+ stores+ sub-merchants”, and improved the comprehensive and integrated sales network. During the reporting period, the operating income was RMB296,786,900 with a year-on-year decrease of13.79% and net profit was RMB10,775,900 with an increase of1.97%.
(II) General operation
In first half of 2018, the Company achieved business revenue of 440.3228 million Yuan, basically the same as last year of 440.1781 million Yuan; operation cost was 374.498 million Yuan, decreased1% over that of 378.3674
million Yuan at last year; the net profit attributable to owners of parent company amounted as 22.6019 million Yuan, a29.37% declined over that of 32.0016 million Yuan at last year.
II. Main business analysis
See “I. Introduction” in “Discussion and Analysis of Business”.
y-o-y change of main financial data
In RMB
||||||
|-|-|-|-|-|
||Current period|Same period of last year|Y-o-y increase/decrease|Reasons for changes|
|Operation revenue|440,322,776.97|440,178,091.75|0.03%||
|Operation cost|374,498,048.55|378,367,434.21|-1.02%||
||14,843,224.40|4,081,303.48||Soaring sales makes the|
|Sales expenses|||263.69%|ocean freight and port|
|||||surcharge rise sharply|
||23,045,619.66|16,193,699.81||Refers to the two|
|||||enterprise are operates,|
|||||including Africa Star|
|Administrative expenses|||42.31%|Company operates since|
|||||July 2017 and Sino-|
|||||Gahna Food Company|
|||||operates since April 2017|
||3,689,988.56|6,517,713.00||Exchange earnings from|
|Financial cost|||-43.39%||
|||||exchange rate changed|
||1,922,681.98|453,724.36||The enterprise income|
|||||tax paid in the period|
|Income tax expense|||323.76%||
|||||increased over that of last|
|||||year|
|Net cash flow arising|21,814,612.31|17,876,156.54|||
||||22.03%||
|from operation activities|||||
||-2,800,663.63|-153,617,939.11||At last period, five tuna|
|Net cash flow arising|||||
|||||purse seine boars are|
|from investment|||98.18%||
|||||purchased by Zhonglu|
|activities|||||
|||||Haiyan Company|
|Net cash flow arising|-15,933,350.40|110,437,409.49|||
||||-114.43%|Bank loans are paid|
|from financing activities|||||
||3,506,827.39|-26,636,709.82||There was no expenses|
|Net increase of cash and||||from major assets|
||||113.17%||
|cash equivalent||||purchased in the period,|
|||||and the cash in-flow|

||
|-|
|from operation activities|
|increased|

Major changes on profit composition or profit resources in reporting period
□ Applicable√ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating||||||
|||Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Seine tuna fishing|82,623,297.13|60,867,908.19|26.33%|185.30%|174.61%|12.24%|
|Longline tuna|||||||
||11,314,101.81|8,164,422.46|27.84%|-84.78%|-85.28%|9.69%|
|fishing|||||||
|Boat rental|44,910,401.08|30,095,185.88|32.99%|-10.19%|-9.36%|-1.82%|
|Distant fishing|||||||
|for other kind of|2,633,412.65|3,617,501.09|-37.37%|-25.35%|-19.46%|-36.83%|
|fish|||||||
|Refrigeration|||||||
|processing trade|||||||
||295,635,531.34|270,984,353.91|8.34%|-13.63%|-16.77%|71.22%|
|of the aquatic|||||||
|products|||||||
|Housing rental|2,054,655.24|768,677.02|62.59%||||
|Waste income|||||||
||1,151,377.72||100.00%||||
|and others|||||||
|According to products|||||||
|Seine tuna fishing|82,623,297.13|60,867,908.19|26.33%|185.30%|174.61%|12.24%|
|Longline tuna|||||||
||11,314,101.81|8,164,422.46|27.84%|-84.78%|-85.28%|9.69%|
|fishing|||||||
|Boat rental|44,910,401.08|30,095,185.88|32.99%|-10.19%|-9.36%|-1.82%|
|Distant fishing|||||||
|for other kind of|2,633,412.65|3,617,501.09|-37.37%|-25.35%|-19.46%|-36.83%|
|fish|||||||
|Refrigeration|||||||
|processing trade|295,635,531.34|270,984,353.90|8.34%|-13.63%|-16.77%|71.22%|
|of the aquatic|||||||

||||||||
|-|-|-|-|-|-|-|
|products|||||||
|Housing rental|2,054,655.24|768,677.02|62.59%||||
|Waste income|||||||
||1,151,377.72||100.00%||||
|and others|||||||
|According to region|||||||
|Taiwan China|79,512,758.32|61,818,126.17|22.25%|-18.23%|-19.63%|6.48%|
|Mainland China|74,294,171.19|48,343,323.59|34.93%|-60.97%|-70.57%|154.78%|
|Ghana|39,701,846.29|34,825,419.59|12.28%|653.15%|607.40%|85.82%|
|Japan|135,107,961.20|127,012,684.70|5.99%|-15.08%|-15.71%|13.26%|
|Thailand|16,455,278.11|12,053,976.93|26.75%|89.71%|100.68%|-13.02%|
|Singapore|4,024,276.04|3,823,373.02|4.99%|-30.14%|-30.91%|27.35%|
|South Korea|22,285,693.34|21,122,067.56|5.22%|75.31%|72.95%|32.86%|
|Other|68,940,792.48|65,499,076.99|4.99%|318.31%|311.65%|44.70%|

 III. Analysis of the non-main business
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|||||Whether has sustainability or|
||Amount|Ration in total profit|Cause||
|||||not|
|Assets impairment|-151,387.56|-0.66%||No sustainability|
|Non-operation|||Resulted by supplementary||
||427,108.38|1.85%||No sustainability|
|expenses|||income tax payment||

IV. Assets and liability
1. Major changes of assets composition
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of current period||End of last period||||
||||||Ratio||
|||Ratio in total||Ratio in total||Notes of major changes|
||Amount||Amount||changes||
|||assets||assets|||
||151,753,165.99||||||
|Monetary fund||13.75%|102,884,493.47|10.22%|3.53%||
|Account|44,730,567.95||||||
|||4.05%|41,823,925.36|4.15%|-0.10%||
|receivable|||||||
||303,811,883.27|||||More purse seine catch in the period,|
|Inventory||27.52%|211,862,695.24|21.04%|6.48%||
|||||||and some of them are not for sale, the|

||||||||
|-|-|-|-|-|-|-|
|||||||seafood refrigeration trade|
|||||||procurement increased|
|Investment real|31,079,447.01||||||
|||2.82%|32,309,303.25|3.21%|-0.39%||
|estate|||||||
||509,463,246.79|||||Transfer to fixed assets from|
|Fixed assets||46.15%|399,550,767.01|39.69%|6.46%||
|||||||construction in progress|
|Construction in|15,213.68|||||The seine boats purchased last period|
|||0.00%|152,869,726.81|15.18%|-15.18%||
|progress||||||are transfer to assets|
|Short-term|63,607,615.40|||||Loans 100 million Yuan are paid to|
|||5.76%|168,666,366.61|16.75%|-10.99%||
|borrowing||||||China CITIC Bank|

2. Assets and liability measure by fair value
□ Applicable√ Not applicable
3. Assets right restriction till end of reporting period
Found more in 78 of the Note in consolidation statement
V. Investment
1. Overall situation
□Applicable√Not applicable
2. The major equity investment obtained in Reporting Period
□ Applicable√ Not applicable
3. The major non-equity investment doing in Reporting Period
□ Applicable√ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable√ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable√ Not applicable
The company had no derivative investment in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable√ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable√ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable□Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over10%
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Company||Main|Register|||Operating|Operating||
||Type|||Total assets|Net Assets|||Net profit|
|name||business|capital|||revenue|profit||
|Shandong|||||||||
|||Processing|||||||
|Zhonglu|||||||||
|||trade of|75,593,300.0|390,124,230.|198,211,872.|296,786,909.|12,514,908||
|Oceanic|Subsidiary|||||||10,775,889.72|
|||aquatic|0|97|60|06|.71||
|(Yantai) Food|||||||||
|||products|||||||
|Co., Ltd.|||||||||
|Shandong|||||||||
|Zhonglu|||||||||
||||||||-||
|Haiyan||Distant sea|221,617,349.|399,060,179.|312,812,984.|73,754,521.8|||
||Subsidiary||||||3,598,555.|-3,598,555.54|
|Oceanic||fishing|00|93|66|2|||
||||||||54||
|Fishery Co.,|||||||||
|Ltd.|||||||||
|HABITAT|||||||||
|||Transport|||||||
|INTERNATI|||||||||
|||rental of the|12,476,146.0|221,592,336.|214,262,579.|29,596,010.5|11,521,734||
|ONAL|Subsidiary|||||||11,521,734.53|
|||refrigeration|0|24|03|8|.53||
|CORPORAT|||||||||
|||vessels|||||||
|ION|||||||||
|Shandong|||||||||
|||Transport|||||||
|Zhonglu|||||||||
|||rental of the|22,505,600.0|33,946,084.1||15,314,390.5|2,022,882.||
|Fishery|Subsidiary||||8,872,121.21|||1,482,111.44|
|||refrigeration|0|4||0|81||
|Shipping Co.,|||||||||
|||vessels|||||||
|Ltd.|||||||||

Particular about subsidiaries obtained or disposed in report period
□ Applicable√ Not applicable
Notes of main holding company and stock-jointly companies
VIII. Structured vehicle controlled by the Company
□ Applicable√ Not applicable
IX. Prediction of business performance from January– September 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
X. Risks and countermeasures
1. Risk of resources change, especially the decrease of major fishing species. Although international fishery resources protection organizations, resource originating countries and responsible fisheries enterprises are committed to sustainable fishing, cyclical changes in resources, climate and hydrological conditions can still lead to fluctuations in fishery resources, including declines in the amount of resources, which will directly result in decline in the Company's output. It makes scientific and reasonable arrangements for vessel maintenance, equipment maintenance, material, bait, spare parts and personnel logistic support to ensure the rate of voyage.
2. Risk of fish price fluctuation. The price of fish may continue to fall and run in a low level which may affect the whole annual revenue. The Company will make careful organization to capture the best opportunity to sell products so as to reduce impairment loss. In addition, it will make full use of the national and local supporting policies and improve the added value of its products by processing.
3. Risk of exchange fluctuations. The appreciation of RMB against the US dollar and the Japanese yen will affect the Company's export products and ship leasing services, so it should pay close attention to development trend of exchange rate and adopt effective financial instruments such as forward exchange, settlement and sale of foreign exchange so as to lock in the exchange rate in advance and minimize the exchange risk to the largest extent. 4. The risk of changes in preferential supporting policies for specific industries, which includes, but not limited to subsidy policies for development and utilization of international fishing resources and policy on export tax rebate. Reduction of subsidy or decline of rebate rate will lead to decrease of non-operating income.
5. The risk of price fluctuation of major raw materials and equipment parts. The biggest cost component of the Company's processing business is attributable to acquisition of raw materials. Thus, increase of raw materials prices will further shorten the profit margin of processing business. The maintenance of ocean fishing vessels need maintenance or update of key equipment components in a timely manner, the price change of which will also affect the cost of fishing production. The Company will deal with the risk of raw material price changes by establishing strategic cooperation with major raw material suppliers, and will reduce the impact of price changes on costs by increasing the localization rate of key equipment components.
Section V. Important Events
I. In the report period, the Company held annualshareholders’ general meeting and extraordinaryshareholders’ general meeting
1. AnnualShareholders’ General Meeting in the report period
|||||||
|-|-|-|-|-|-|
|||Ratio of investor||||
|Session of meeting|Type||Date|Date of disclosure|Index of disclosure|
|||participation||||
||||||Resolution Notice of|
||||||The First Interim|
||||||General|
||||||Shareholders|
|The First Interim||||||
||Interim General||||Meeting 2018|
|General||||||
||Shareholders|48.09%|2018-01-25|2018-01-26|(Notice No.: 2018-|
|Shareholders||||||
||Meeting||||04) released on|
|Meeting 2018||||||
||||||China Securities|
||||||Journal, Hong Kong|
||||||Commercial Daily|
||||||and Juchao Website|
||||||Resolution Notice of|
||||||The Second Interim|
||||||General|
||||||Shareholders|
|The Second Interim||||||
||Interim General||||Meeting 2018|
|General||||||
||Shareholders|47.42%|2018-02-26|2018-02-27|(Notice No.: 2018-|
|Shareholders||||||
||Meeting||||10) released on|
|Meeting 2018||||||
||||||China Securities|
||||||Journal, Hong Kong|
||||||Commercial Daily|
||||||and Juchao Website|
||||||Resolution Notice of|
||||||Annual General|
||||||Meeting of 2017|
||||||(Notice No.: 2018-|
|Annual General||||||
||AGM|49.19%|2018-06-28|2018-06-29|20) released on|
|Meeting of 2017||||||
||||||China Securities|
||||||Journal, Hong Kong|
||||||Commercial Daily|
||||||and Juchao Website|

2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable√ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the year
III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
□ Applicable√ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes√ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable√ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of lastyear’s
□ Applicable√ Not applicable
VII. Bankruptcy reorganization
□ Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable√ Not applicable
No material lawsuits and arbitration in the reporting
Other lawsuits
□ Applicable√ Not applicable
IX. Penalty and rectification
□ Applicable√ Not applicable
No penalty and rectification for the Company in reporting period.
X Integrity of the company and its controlling shareholders and actual controllers
□Applicable√Not applicable
XI. Implementation of thecompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□ Applicable√ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives that have not been implemented.
XII. Material related transactions
1. Related transaction with daily operation concerned
□ Applicable√ Not applicable
No related transaction with daily operation concerned for the Company in reporting period.
2. Related transactions by assets acquisition and sold
□ Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable√ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable√ Not applicable
No contact of related credit and debt for the Company in reporting period
5. Other material related transactions
√Applicable□ Not applicable
In order to ease the pressure from capital shortage, Haiyan Company, the controlling subsidiary of the Company, made an capital increase by existing shareholders to secure sufficient capital for normal operation and new business development. In detail, Shandong State Investment contributed monetary capital of RMB100 million and the Company made monetary capital contribution of RMB28
million while abandoning the right to increase capital on a pro rata basis.
Related query of interim notice material related transactions
||||
|-|-|-|
|Notice name|Disclosure date|Website for disclosure|
|Capital Increment of the ControllingSubsidiary and Related Transaction onAbandoning Rights to Increased Capital inProportion|||
||2018-02-09|http://www.cninfo.com.cn|

XIII. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
XIV. 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. Major guarantee
□ Applicable√ Not applicable
The Company had no guarantee in the reporting period.
3. Other material contracts
□ Applicable√ Not applicable
The Company had no other material contracts in the reporting period.
XV. Social responsibility
1. Material environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection No
Listed company and its subsidiary are not belongs to key pollution enterprise listed by Department of Environmental Protection 2. Targeted poverty alleviation social responsibility
During the reporting period, the Company made proactive response to the Proposal for Devotion to Targeted Poverty Alleviation for Rural Areas addressed by Qingdao Securities Regulatory Bureau and Qingdao Listing Company Association, and participated the poverty alleviation program between Qingdao and Anshun, Guizhou, seeking for poverty alleviation assistance demands. During the reporting period, the Company made discussion with Qingdao Education Development Fund and Anshun Education Bureau in respect of improvement of educational resources in poor areas, expecting to alleviate poverty by teaching the poor to get rid of the poverty.
In future, the Company will continue to practice the overall poverty alleviation program. It will focus on poverty alleviation through education contribution as the essential manner to perform its social responsibility, conduct targeted poverty alleviation and propel early implementation of the alleviation projects, making its own contribution to the national strategy of poverty alleviation.
XVI. Explanation on other significant events
√Applicable□Not applicable
||||
|-|-|-|
|Name of the Notice|Released date|Website or index for disclosure|
|Capital Increment of the Controlling Subsidiary and Related|2018-2-9||
|Transaction on Abandoning Rights to Increased Capital in||http//www.cninfo.com.cn|
|Proportion|||
|Progress of Major Evetns and Suggestive Annoucement on Equtiy|2018-4-9||
|||http//www.cninfo.com.cn|
|Transfer on Agreement from State-owned Shareholder|||

XVII. Significant event of subsidiary of the Company
√ Applicable□ Not applicable
In order to ease the pressure from capital shortage, Shandong Zhonglu Haiyan Distant Fishery Company Limited, the controlling subsidiary of the Company, made an capital increase by existing shareholders to secure sufficient capital for normal operation and new business development. In detail, Shandong State Investment contributed monetary capital of RMB100 million and the Company made monetary capital contribution of RMB28 million while abandoning the right to increase capital on a pro rata basis. Upon completion of this capital increase, the
shareholding proportion of the Company increased to59.05%, enabling it to maintain the role of controlling
shareholder, which made Haiyan Company included in our consolidated statements. For details, please refer to the
Connected Transaction Announcement relating to Capital Increase of the Controlling Subsidiary While Abandoning the Right to Increase Capital on a Pro Rata Basis (No.2018-07) disclosed on China Securities Journal, Hong Kong Commercial Daily and Juchao Information Website.
The fourth meeting of the 6th Board of Directors of the Company examined and approved the Proposal on the Purchase of Tuna Seine Boat Project, agreed thecompany’s holding subsidiary– Shandong Zhonglu Haiyan Oceanic Fishery Co., Ltd. to purchase five tuna seine boats with ICCAT registered fishing license. The five tuna seine boats are put into operation up to the report disclosed
Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Shares
1. Changes in Shares
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capitalizat|||||
||||New|||||||
|||||Bonus|ion of|||||
||Amount|Proportion|shares|||Others|Subtotal|Amount|Proportion|
||||issued|shares|public|||||
||||||reserve|||||
||128,071,3|||||||128,071,3||
|I. Unlisted shares||48.13%|||||||48.13%|
||20|||||||20||
||128,071,3|||||||128,071,3||
|1. Sponsor shares||48.13%|||||||48.13%|
||20|||||||20||
|Including: State-owned|127,811,3|||||||127,811,3||
|||48.04%|||||||48.04%|
|shares|20|||||||20||
|Domestic corporate||||||||||
||260,000|0.10%||||||260,000|0.10%|
|shares||||||||||
||138,000,0|||||||138,000,0||
|II. Listed shares||51.87%|||||||51.87%|
||00|||||||00||
|2. Domestically listed|138,000,0|||||||138,000,0||
|||51.87%|||||||51.87%|
|foreign shares|00|||||||00||
||266,071,3|||||||266,071,3||
|III. Total shares||100.00%|||||||100.00%|
||20|||||||20||

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
2. Changes of restricted shares
□ Applicable√ Not applicable
II. Securities issuance and listing
□ Applicable√ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Total preference shareholders||||||
|Total common shareholders at|||||with voting rights recovered at||||||
|||11,716|||||||0||
|period-end|||||end of reporting period (if||||||
||||||applicable) (see Note 8)||||||
|Particulars about shares held above 5% by common shareholders or top ten common shareholders|||||||||||
|||||||Amount|Amount|Number of share pledged/frozen|||
|||||Number|||||||
|||||||of|of||||
|||||of|||||||
||||||Changes|holding|holding||||
|||||common|||||||
||Nature of||Proportion of||in|unlisted|listed||||
|Shareholders||||shares|||||||
||shareholder||shares held||reportin|common|common|Status||Amount|
|||||held at|||||||
||||||g period|circulati|circulati||||
|||||period-|||||||
|||||||on|on||||
|||||end|||||||
|||||||shares|shares||||
|Shandong State-owned AssetsInvestmentHoldingCompanyLimited|State-ownedcorporate||33.07%|88,000,000||88,000,000|||||
|ShandongLuxinInvestmentHoldingCompanyLimited|State-ownedcorporate||14.18%|37,731,320||37,731,320|||||
|Chen Tianming|Overseas naturalperson||2.16%|5,760,427|||5,760,427||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseas corporate||1.87%|4,965,204|||4,965,204||||
|Shen WanHongyuanSecurities (H.K)Co., Ltd.|Overseas corporate||1.74%|4,639,154|||4,639,154||||

|||||||||
|-|-|-|-|-|-|-|-|
|HaitongInternationalSecuritiesCompanyLimited-Account Client|Overseas corporate|0.82%|2,170,500||2,170,500|||
|China NationalHeavy DutyTruck GroupJinan TruckLLC.|State-ownedcorporate|0.73%|1,950,000|1,950,000||||
|Cai Yujiu|Domestic natureperson|0.64%|1,714,049||1,714,049|||
|WangDongsheng|Domestic natureperson|0.46%|1,215,203||1,215,203|||
|Qin Jun|Domestic natureperson|0.41%|1,083,820||1,083,820|||
|Strategy investors or general||||||||
|corporate becomes top 10 common||||||||
|||Not applicable||||||
|shareholders due to rights issued (if||||||||
|applicable)(Note 3)||||||||
|||Shandong State-owned Assets Investment Holding Co., Ltd and Shandong Luxin Investment||||||
|||Holding Group Co., Ltd are provincial state-owned enterprises under the same stock controlling of||||||
|||Shandong Provincial Commission; China National Heavy Duty Truck Group Jinan Truck LLC is||||||
|Explanation on associated||||||||
|||the sponsor shareholder of the Company, Shandong State-owned Assets Investment Holding||||||
|relationship among the aforesaid||||||||
|||Co., Ltd has 20% shares of China National Heavy Duty Truck Group Jinan Truck LLC. Rests||||||
|shareholders||||||||
|||of the shareholders are the domestically listed foreign shareholders, and t he Company is||||||
|||unknown whether there exists associated relationship or belongs to consistent actor regulated||||||
|||by “management method for acquisition of listed company” among the above said shareholders||||||
|Shareholding of top 10 circulated shareholders||||||||
|||||||Type of shares||
|Shareholders||Amount of listed shares held at end of the Period||||||
|||||||Type|Amount|
|Chen Tianming||5,760,427||||Domestically||
|||||||listed foreign||
|||||||shares||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||4,965,204||||Domestically||
|||||||listed foreign||
|||||||shares||
|Shen Wan Hongyuan Securities(H.K) Co., Ltd.||4,639,154||||Domestically||
|||||||listed foreign||

||||
|-|-|-|
|||shares|
|Haitong International SecuritiesCompany Limited-Account Client|2,170,500|Domestically|
|||listed foreign|
|||shares|
|Cai Yujiu|1,714,049|Domestically|
|||listed foreign|
|||shares|
|Wang Dongsheng|1,215,203|Domestically|
|||listed foreign|
|||shares|
|Qin Jun|1,083,820|Domestically|
|||listed foreign|
|||shares|
|Huang Jiayi|1,048,687|Domestically|
|||listed foreign|
|||shares|
|Lin Mingyu|964,001|Domestically|
|||listed foreign|
|||shares|
|KGI ASIA LIMITED|903,000|Domestically|
|||listed foreign|
|||shares|
|Expiation on associated relationship|||
|or consistent actors within the top|||
||The Company is unknown whether there exists associated relationship or belongs to consistent||
|10 un-restrict shareholders and|||
||actor regulated by “management method for acquisition of listed company” among the above||
|between top 10 un-restrict|||
||said shareholders.||
|shareholders and top 10|||
|shareholders|||
|Explanation on shareholders|||
|involving margin business about top|||
|ten common stock shareholders|Not applicable||
|with un-restrict shares held(if|||
|applicable) (see note4)|||

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable√ Not applicable
Found more in annual report 2017 for the changes of shares held by directors, supervisors and senior executives
II. Resignation and dismissal of directors, supervisors and senior executives
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Position held|Type|Date|Cause|
|Lu Lianxing|President|Election|2018-01-25|Election on shareholder general meeting|
|||Appoint &|||
|Wang Huan|GM||2018-06-07|Board employment|
|||remove|||

Section IX Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when semi-annual report approved for released or fail to cash in full on due
No
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
2018-06-30
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|151,753,165.99|147,489,843.54|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
||44,730,567.95|38,792,912.89|
|Accounts receivable|||
|Accounts paid in advance|13,370,603.36|18,573,111.58|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|1,691,389.44|11,305,713.11|
|Purchase restituted finance asset|||

||||
|-|-|-|
|Inventories|303,811,883.27|243,744,590.07|
|Divided into assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|28,802,602.21|30,081,962.56|
|Total current assets|544,160,212.22|489,988,133.75|
|Non-current assets:|||
|Loans and payments on behalf|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|||
|Investment property|31,079,447.01|31,694,375.13|
|Fixed assets|509,463,246.79|525,975,263.88|
|Construction in progress|15,213.68||
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|13,219,178.90|13,495,947.76|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|409,385.15|516,181.25|
|apportioned|||
|Deferred income tax asset|1,986,696.05|286,696.05|
|Other non-current asset|3,601,885.77|3,527,165.98|
|Total non-current asset|559,775,053.35|575,495,630.05|
|Total assets|1,103,935,265.57|1,065,483,763.80|
|Current liabilities:|||
|Short-term loans|63,607,615.40|176,394,931.62|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||

||||
|-|-|-|
|Derivative financial liability|||
|Notes payable|||
|Accounts payable|92,718,294.72|65,204,257.98|
|Accounts received in advance|28,598,670.52|19,875,122.76|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||
|Wage payable|36,781,555.83|42,854,174.79|
|Taxes payable|2,570,366.58|3,378,698.19|
|Interest payable|190,417.41|360,208.32|
|Dividend payable|||
|Other accounts payable|7,713,318.18|6,175,352.76|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Liability held for sale|||
|Non-current liabilities due within 1|433,292.75|866,585.48|
|year|||
|Other current liabilities|||
|Total current liabilities|232,613,531.39|315,109,331.90|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|1,577,667.63|1,577,667.63|
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|9,705,869.14|9,705,869.14|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|11,283,536.77|11,283,536.77|
|Total liabilities|243,897,068.16|326,392,868.67|

||||
|-|-|-|
|Owner’s equity:|||
|Share capital|266,071,320.00|266,071,320.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|287,352,616.86|279,998,206.82|
|Less: Inventory shares|||
|Other comprehensive income|-6,089,149.66|-6,075,014.12|
|Reasonable reserve|||
|Surplus public reserve|21,908,064.19|21,908,064.19|
|Provision of general risk|||
|Retained profit|164,469,116.27|141,867,217.06|
|Total owner’s equity attributable to|733,711,967.66|703,769,793.95|
|parent company|||
|Minority interests|126,326,229.75|35,321,101.18|
|Total owner’s equity|860,038,197.41|739,090,895.13|
|Total liabilities and owner’s equity|1,103,935,265.57|1,065,483,763.80|

 Legal Representative: Lu Lianxing
Person in Charge of Accounting: Zhao Minkun
Person in Charge of Accounting Department: Lei Lixin
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||13,879,519.37|48,034,853.41|
|Monetary funds|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|13,680,543.82|8,484,060.27|
|Account paid in advance|2,197,182.11|2,760,665.71|

||||
|-|-|-|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|72,151,233.87|64,689,774.99|
|Inventories|59,227,080.92|49,373,616.72|
|Assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|1,687,543.79|1,016,912.35|
|Total current assets|162,823,103.88|174,359,883.45|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term receivables|5,837,328.77|5,397,947.02|
|Long-term equity investments|232,189,455.23|204,189,455.23|
|Investment property|31,079,447.01|31,694,375.13|
|Fixed assets|71,223,598.62|76,550,539.61|
|Construction in progress|||
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|454,539.09|525,800.21|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|409,385.15|516,181.25|
|Deferred income tax assets|||
|Other non-current assets|285,524.92|196,581.20|
|Total non-current assets|341,479,278.79|319,070,879.65|
|Total assets|504,302,382.67|493,430,763.10|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||

||||
|-|-|-|
|Notes payable|||
|Accounts payable|7,937,084.69|14,290,700.38|
|Accounts received in advance|15,268,393.44|3,883,689.36|
|Wage payable|22,464,476.38|22,130,930.92|
|Taxes payable|286,038.57|278,991.52|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|70,324,768.37|67,530,200.11|
|Liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|116,280,761.45|108,114,512.29|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|1,127,604.68|1,127,604.68|
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|1,127,604.68|1,127,604.68|
|Total liabilities|117,408,366.13|109,242,116.97|
|Owners’ equity:|||
|Share capita|266,071,320.00|266,071,320.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|279,115,900.17|279,115,900.17|

||||
|-|-|-|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|19,184,672.34|19,184,672.34|
|Retained profit|-177,477,875.97|-180,183,246.38|
|Total owner’s equity|386,894,016.54|384,188,646.13|
|Total liabilities and owner’s equity|504,302,382.67|493,430,763.10|

 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|440,322,776.97|440,178,091.75|
|Including: Operating income|440,322,776.97|440,178,091.75|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|417,258,997.84|406,876,087.35|
|Including: Operating cost|374,498,048.55|378,367,434.21|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|1,333,504.23|1,705,436.85|
|Sales expenses|14,843,224.40|4,081,303.48|
|Administration expenses|23,045,619.66|16,193,699.81|
|Financial expenses|3,689,988.56|6,517,713.00|
|Losses of devaluation of asset|-151,387.56|10,500.00|
|Add: Changing income of fair|||

||||
|-|-|-|
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
|with “-”)|||
|Including: Investment income on|||
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|Income from assets disposal (Loss is|||
||-18,990.79|262,776.33|
|listed with “-”)|||
|Other income|433,292.74||
|III. Operating profit (Loss is listed with|||
||23,478,081.08|33,564,780.73|
|“-”)|||
|Add: Non-operating income|0.00|648,201.59|
|Less: Non-operating expense|427,108.38|300,402.16|
|IV. Total Profit (Loss is listed with “-”)|23,050,972.70|33,912,580.16|
|Less: Income tax expense|1,922,681.98|453,724.36|
|V. Net profit (Net loss is listed with “-”)|21,128,290.72|33,458,855.80|
|(i) Net profit of continuing|||
||21,128,290.72|33,458,855.80|
|operation(Net loss is listed with “-”)|||
|(ii) Net profit of discontinuing|||
||0.00||
|operation (Net loss is listed with “-”|||
|Net profit attributable to owner’s of|||
||22,601,899.21|32,001,590.86|
|parent company|||
|Minority shareholders’ gains and|||
||-1,473,608.49|1,457,264.94|
|losses|||
|VI. Net after-tax of other comprehensive|||
||-23,938.25|354,732.98|
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|-14,135.54|354,732.98|
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of re-|||
|measurement of net defined benefit plan|||
|liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||

||||
|-|-|-|
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|-14,135.54|354,732.98|
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of available-|||
|for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|-14,135.54|354,732.98|
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|-9,802.71||
|shareholders|||
|VII. Total comprehensive income|21,104,352.47|33,813,588.78|
|Total comprehensive income|||
||22,587,763.67|32,356,323.84|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||-1,483,411.20|1,457,264.94|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.08|0.12|
|(ii) Diluted earnings per share|0.08|0.12|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
Legal Representative: Lu Lianxing
Person in Charge of Accounting: Zhao Minkun
Person in Charge of Accounting Department: Lei Lixin
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|79,888,714.36|59,539,271.88|
|Less: Operating cost|60,951,172.97|43,838,067.27|
|Operating tax and extras|342,224.63|452,021.58|
|Sales expenses|6,582,490.13|2,225,689.69|
|Administration expenses|10,276,464.69|8,254,821.34|
|Financial expenses|-1,041,062.37|-262,508.81|
|Losses of devaluation of asset|2,053.90|10,500.00|
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
|listed with “-”)|||
|Including: Investment income|||
|on affiliated company and joint venture|||
|Income from assets disposal|||
|(Loss is listed with “-”)|||
|Other income|||
|II. Operating profit (Loss is listed|||
||2,775,370.41|5,020,680.81|
|with “-”)|||
|Add: Non-operating income|0.00|266,306.33|
|Less: Non-operating expense|70,000.00|260,672.26|
|III. Total Profit (Loss is listed with|||
||2,705,370.41|5,026,314.88|
|“-”)|||
|Less: Income tax expense|||
|IV. Net profit (Net loss is listed with|||
||2,705,370.41|5,026,314.88|
|“-”)|||
|(i) Net profit of continuing|||
||2,705,370.41|5,026,314.88|
|operation(Net loss is listed with “-”)|||
|(ii) Net profit of discontinuing|||
|operation (Net loss is listed with “-”|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||

||||
|-|-|-|
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of re-|||
|measurement of net defined benefit plan|||
|liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of available-|||
|for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|2,705,370.41|5,026,314.88|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

||||
|-|-|-|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|394,303,101.04|405,702,926.35|
|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 amount from|||
|disposal financial assets that measured|||
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|29,094,665.73|34,892,340.04|
|Other cash received concerning|||
||87,228,597.67|43,104,120.67|
|operating activities|||
|Subtotal of cash inflow arising from|||
||510,626,364.44|483,699,387.06|
|operating activities|||
|Cash paid for purchasing|||
||292,810,614.62|350,844,053.24|
|commodities 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|59,531,961.28|56,040,388.83|
|Taxes paid|9,030,860.47|4,539,217.08|
|Other cash paid concerning|||
||127,438,315.76|54,399,571.37|
|operating activities|||
|Subtotal of cash outflow arising from|||
||488,811,752.13|465,823,230.52|
|operating activities|||
|Net cash flows arising from operating|||
||21,814,612.31|17,876,156.54|
|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|15,477.00|312,482.88|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||15,477.00|312,482.88|
|activities|||
|Cash paid for purchasing fixed,|||
||2,816,140.63|153,930,421.99|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||2,816,140.63|153,930,421.99|
|activities|||
|Net cash flows arising from investing|-2,800,663.63|-153,617,939.11|

||||
|-|-|-|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
||100,000,000.00||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|100,000,000.00||
|investment by subsidiaries|||
|Cash received from loans|44,481,427.05|157,501,563.84|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||144,481,427.05|157,501,563.84|
|activities|||
|Cash paid for settling debts|157,275,541.94|44,521,400.44|
|Cash paid for dividend and profit|||
||3,139,235.51|2,542,753.91|
|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|||
||160,414,777.45|47,064,154.35|
|activities|||
|Net cash flows arising from financing|||
||-15,933,350.40|110,437,409.49|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|426,229.11|-1,332,336.74|
|exchange rate|||
|V. Net increase of cash and cash|||
||3,506,827.39|-26,636,709.82|
|equivalents|||
|Add: Balance of cash and cash|||
||147,067,351.82|128,737,661.78|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||150,574,179.21|102,100,951.96|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|37,086,232.35|16,987,592.08|
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||13,622,760.58|25,919,003.74|
|operating activities|||
|Subtotal of cash inflow arising from|||
||50,708,992.93|42,906,595.82|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|26,382,364.57|15,123,541.05|
|service|||
|Cash paid to/for staff and workers|15,488,408.20|14,657,227.96|
|Taxes paid|1,324,993.47|315,684.06|
|Other cash paid concerning|||
||12,830,808.80|44,713,882.83|
|operating activities|||
|Subtotal of cash outflow arising from|||
||56,026,575.04|74,810,335.90|
|operating activities|||
|Net cash flows arising from operating|||
||-5,317,582.11|-31,903,740.08|
|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|0.00|287,282.88|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||0.00|287,282.88|
|activities|||
|Cash paid for purchasing fixed,|839,043.14|543,090.00|

||||
|-|-|-|
|intangible and other long-term assets|||
|Cash paid for investment|28,000,000.00|0.00|
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||28,839,043.14|543,090.00|
|activities|||
|Net cash flows arising from investing|||
||-28,839,043.14|-255,807.12|
|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|1,291.21|-22,076.10|
|exchange rate|||
|V. Net increase of cash and cash|||
||-34,155,334.04|-32,181,623.30|
|equivalents|||
|Add: Balance of cash and cash|||
||48,034,853.41|43,007,956.89|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||13,879,519.37|10,826,333.59|
|equivalents at the period -end|||

7. Statement of Changes inOwners’ Equity (Consolidated)
Current period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||||
||Owners’ equity attributable to parent company|||||||||||||
|||Other||||||||||||
|||equity instrument||||||||||||
|Item||||||||||||Minorit|Total|
||||Perpet|||Less:|Other|Reason||Provisio||y|owners’|
||Share|Prefer|ual||Capitalreserve|Inventory|comprehensive|able|Surplusreserve|n ofgeneral|Retained profit|interests|equity|
|||red|capita|Other||shares|income|reserve||risk||||
||||l|||||||||||
|||stock||||||||||||
||||securi|||||||||||
||||ties|||||||||||
||266,07||||||-|||||||
|I. Balance at the|||||279,998||||21,908,||141,867|35,321,|739,090|
||1,320.||||||6,075,0|||||||
|end of the last year|||||,206.82||||064.19||,217.06|101.18|,895.13|
||00||||||14.12|||||||
|Add: Changes||||||||||||||
|of accounting||||||||||||||
|policy||||||||||||||
|Error||||||||||||||
|correction of the||||||||||||||
|last period||||||||||||||
|Enterprise||||||||||||||
|combine under||||||||||||||
|the same control||||||||||||||
|Other||||||||||||||
||266,07||||||-|||||||
|II. Balance at the|||||279,998||||21,908,||141,867|35,321,|739,090|
|beginning of this|1,320.||||||6,075,0|||||||
||||||,206.82||||064.19||,217.06|101.18|,895.13|
|year|00||||||14.12|||||||
|III. Increase/|||||||-|||||||
||||||7,354,4||||||22,601,|91,005,|120,947|
|Decrease in this||||||||||||||
||||||||14,135.|||||||
|year (Decrease is|||||10.04||||||899.21|128.57|,302.28|
||||||||54|||||||
|listed with “-”)||||||||||||||
||||||||-|||||-||
|(i) Total|||||||||||22,601,||21,114,|
|comprehensive|||||||14,135.|||||1,473,6||
||||||||||||899.21||155.18|
|income|||||||54|||||08.49||
|(ii) Owners’|||||7,354,4|||||||92,478,|99,833,|
|devoted and||||||||||||||
||||||10.04|||||||737.06|147.10|
|decreased capital||||||||||||||
|1.Common shares|||||7,354,4|||||||92,478,|99,833,|
|invested by||||||||||||||
||||||10.04|||||||737.06|147.10|
|shareholders||||||||||||||
|2. Capital invested||||||||||||||
|by holders of other||||||||||||||
|equity instruments||||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|3. Amount||||||||
|reckoned into||||||||
|owners equity with||||||||
|share-based||||||||
|payment||||||||
|4. Other||||||||
|(III) Profit||||||||
|distribution||||||||
|1. Withdrawal of||||||||
|surplus reserves||||||||
|2. Withdrawal of||||||||
|general risk||||||||
|provisions||||||||
|3. Distribution for||||||||
|owners (or||||||||
|shareholders)||||||||
|4. Other||||||||
|(IV) Carrying||||||||
|forward internal||||||||
|owners’ equity||||||||
|1. Capital reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|2. Surplus reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|3. Remedying loss||||||||
|with surplus||||||||
|reserve||||||||
|4. Other||||||||
|(V) Reasonable||||||||
|reserve||||||||
|1. Withdrawal in||||||||
|the report period||||||||
|2. Usage in the||||||||
|report period||||||||
|(VI)Others||||||||
||266,07||-||||860,038,197.41|
|IV. Balance at the||287,352||21,908,|164,469|126,326||
|end of the report|1,320.||6,089,1|||||
|||,616.86||064.19|,116.27|,229.75||
|period|00||49.66|||||

Last Year
In RMB
|||||
|-|-|-|-|
||Last period|||
|Item||||
||Owners’ equity attributable to the parent Company|||
|||Minorit|Total|

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Other||||||||||y|owners’|
|||equity instrument||||||||||interest|equity|
|||||||||||||s||
|||||||Less:|Other|||Provisio||||
||Share||Perpet|||||Reason||||||
||||||Capital|Invento|compre||Surplus|n of|Retaine|||
||||ual|||||able||||||
||capital|Prefer|||reserve|ry|hensive||reserve|general|d profit|||
||||capita|||||reserve||||||
|||red||Other||shares|income|||risk||||
||||l|||||||||||
|||stock||||||||||||
||||securi|||||||||||
||||ties|||||||||||
||266,07||||||-|||||||
||||||279,998||||21,908,||50,349,|33,097,|650,759|
|I. Balance at the||||||||||||||
||1,320.||||||665,059|||||||
|end of the last year|||||,206.82||||064.19||731.78|484.30|,748.02|
||00||||||.07|||||||
|Add: Changes||||||||||||||
|of accounting||||||||||||||
|policy||||||||||||||
|Error||||||||||||||
|correction of the||||||||||||||
|last period||||||||||||||
|Enterprise||||||||||||||
|combine under the||||||||||||||
|same control||||||||||||||
|Other||||||||||||||
||266,07||||||-|||||||
|II. Balance at the|||||279,998||||21,908,||50,349,|33,097,|650,759|
|beginning of this|1,320.||||||665,059|||||||
||||||,206.82||||064.19||731.78|484.30|,748.02|
|year|00||||||.07|||||||
|III. Increase/||||||||||||||
||||||||354,732||||32,001,|1,457,2|33,813,|
|Decrease in this||||||||||||||
|year (Decrease is|||||||.98||||590.86|64.94|588.78|
|listed with “-”)||||||||||||||
|(i) Total|||||||354,732||||32,001,|1,457,2|33,813,|
|comprehensive||||||||||||||
||||||||.98||||590.86|64.94|588.78|
|income||||||||||||||
|(ii) Owners’||||||||||||||
|devoted and||||||||||||||
|decreased capital||||||||||||||
|1.Common shares||||||||||||||
|invested by||||||||||||||
|shareholders||||||||||||||
|2. Capital invested||||||||||||||
|by holders of other||||||||||||||
|equity instruments||||||||||||||
|3. Amount||||||||||||||
|reckoned into||||||||||||||
|owners equity with||||||||||||||
|share-based||||||||||||||
|payment||||||||||||||
|4 Other||||||||||||||
|(III) Profit||||||||||||||
|distribution||||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|1. Withdrawal of||||||||
|surplus reserves||||||||
|2. Withdrawal of||||||||
|general risk||||||||
|provisions||||||||
|3. Distribution for||||||||
|owners (or||||||||
|shareholders)||||||||
|4. Other||||||||
|(IV) Carrying||||||||
|forward internal||||||||
|owners’ equity||||||||
|1. Capital reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|2. Surplus reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|3. Remedying loss||||||||
|with surplus||||||||
|reserve||||||||
|4. Other||||||||
|(V) Reasonable||||||||
|reserve||||||||
|1. Withdrawal in||||||||
|the report period||||||||
|2. Usage in the||||||||
|report period||||||||
|(VI)Others||||||||
||266,07||-|||||
|IV. Balance at the||279,998||21,908,|82,351,|34,554,|684,573|
|end of the report|1,320.||310,326|||||
|||,206.82||064.19|322.64|749.24|,336.80|
|period|00||.09|||||

8. Statement of Changes inOwners’ Equity (Parent Company)
Current period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||
|||Other||||||||||
|||equity instrument||||||||||
||||||||Other||||Total|
|Item|Share|||||Less:||||Retaine||
||||||Capital||comprehe|Reasonab|Surplus|||
||||Perpetu|||Inventory|||||owners’|
||capital||||reserve||nsive|le reserve|reserve|d profit||
|||Preferre|al|Other||shares|income||||equity|
|||d stock|capital|||||||||
||||securiti|||||||||

||||||||
|-|-|-|-|-|-|-|
|||es|||||
||||||-||
||266,071,||279,115,9|19,184,67||384,188,6|
|I. Balance at the|||||||
||||||180,183||
|end of the last year|320.00||00.17|2.34||46.13|
||||||,246.38||
|Add: Changes|||||||
|of accounting|||||||
|policy|||||||
|Error|||||||
|correction of the|||||||
|last period|||||||
|Other|||||||
||||||-||
|II. Balance at the|266,071,||279,115,9|19,184,67||384,188,6|
|beginning of this|||||180,183||
||320.00||00.17|2.34||46.13|
|year|||||,246.38||
|III. Increase/|||||||
||||||2,705,3|2,705,370|
|Decrease in this|||||||
|year (Decrease is|||||70.41|.41|
|listed with “-”)|||||||
|(i) Total|||||2,705,3|2,705,370|
|comprehensive|||||||
||||||70.41|.41|
|income|||||||
|(ii) Owners’|||||||
|devoted and|||||||
|decreased capital|||||||
|1.Common shares|||||||
|invested by|||||||
|shareholders|||||||
|2. Capital invested|||||||
|by holders of other|||||||
|equity instruments|||||||
|3. Amount|||||||
|reckoned into|||||||
|owners equity with|||||||
|share-based|||||||
|payment|||||||
|4. Other|||||||
|(III) Profit|||||||
|distribution|||||||
|1. Withdrawal of|||||||
|surplus reserves|||||||
|2. Distribution for|||||||
|owners (or|||||||
|shareholders)|||||||
|3. Other|||||||
|(IV) Carrying|||||||
|forward internal|||||||
|owners’ equity|||||||

|||||||
|-|-|-|-|-|-|
|1. Capital reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|2. Surplus reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|3. Remedying loss||||||
|with surplus||||||
|reserve||||||
|4. Other||||||
|(V) Reasonable||||||
|reserve||||||
|1. Withdrawal in||||||
|the report period||||||
|2. Usage in the||||||
|report period||||||
|(VI)Others||||||
|||||-|386,894,016.54|
|IV. Balance at the|266,071,|279,115,9|19,184,67|||
|end of the report||||177,477||
||320.00|00.17|2.34|||
|period||||,875.97||

Last Year
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||
|||Other||||||||||
|||equity instrument||||||||||
||||||||Other||||Total|
|Item|Share||Perpetu||Capital|Less:|comprehe|Reasonab|Surplus|Retaine||
|||||||Inventory|||||owners’|
||capital||al||reserve||nsive|le reserve|reserve|d profit||
|||Preferre|capital|Other||shares|income||||equity|
|||d stock||||||||||
||||securiti|||||||||
||||es|||||||||
|||||||||||-||
||266,071,||||279,115,9||||19,184,67||354,503,6|
|I. Balance at the||||||||||||
|||||||||||209,868||
|end of the last year|320.00||||00.17||||2.34||74.81|
|||||||||||,217.70||
|Add: Changes||||||||||||
|of accounting||||||||||||
|policy||||||||||||
|Error||||||||||||
|correction of the||||||||||||
|last period||||||||||||
|Other||||||||||||
|II. Balance at the|266,071,||||279,115,9||||19,184,67|-|354,503,6|
|beginning of this||||||||||||
||320.00||||00.17||||2.34|209,868|74.81|
|year||||||||||||

||||
|-|-|-|
||,217.70||
|III. Increase/|||
||5,026,3|5,026,314|
|Decrease in this|||
|year (Decrease is|14.88|.88|
|listed with “-”)|||
|(i) Total|5,026,3|5,026,314|
|comprehensive|||
||14.88|.88|
|income|||
|(ii) Owners’|||
|devoted and|||
|decreased capital|||
|1.Common shares|||
|invested by|||
|shareholders|||
|2. Capital invested|||
|by holders of other|||
|equity instruments|||
|3. Amount|||
|reckoned into|||
|owners equity with|||
|share-based|||
|payment|||
|4. Other|||
|(III) Profit|||
|distribution|||
|1. Withdrawal of|||
|surplus reserves|||
|2. Distribution for|||
|owners (or|||
|shareholders)|||
|3. Other|||
|(IV) Carrying|||
|forward internal|||
|owners’ equity|||
|1. Capital reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|2. Surplus reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|3. Remedying loss|||
|with surplus|||
|reserve|||
|4. Other|||
|(V) Reasonable|||
|reserve|||

|||||||
|-|-|-|-|-|-|
|1. Withdrawal in||||||
|the report period||||||
|2. Usage in the||||||
|report period||||||
|(VI)Others||||||
|||||-||
|IV. Balance at the|266,071,|279,115,9|19,184,67||359,529,9|
|end of the report||||204,841||
||320.00|00.17|2.34||89.69|
|period||||,902.82||

III. Company profile
(I) Enterprise registration place, Organization form and Headquarters address
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (the “Company”), registration address: No. 29 Miaoling Road, Laoshan District, Qingdao Shangdong, headquarter locates at No. 65 Haier Road, Qingdao Shangdong, was incorporated as a joint stock limited company in thePeople’s Republic of China on 30 July 1999 according to the documentation of Lu Ti Gai Zi[1999] No.85 issued by Shandong Development and Reform Commission, and the holding company of the Company is Shandong Fisheries Enterprise Group General Corporation, the main sponsor. On 26 June 2000, being approved by the documentation of Zheng Jian Fa Xing Zi[2000] No.82 issued by the China Securities Regulatory Commission, theCompany’s B-share, stock ID ”Zhonglu B”, stock code” 200992” are listing for trading on Shenzhen Stock Exchange dated 24 July 2000.
Basic organization structure of the Company: Party Committee, board of shareholders, board of directors, supervisory committee, office, office of the board, departments of human resources, financing plan department, enterprise development department, auditing section and discipline inspection& supervision department
(II) Business nature and main business activities of Enterprise
Corporate industry: sea-going fisheries
Corporate major products: tuna and its products
Operating scope: general management projects: sales and processing of aquatic products; merchandise import and export business within approved scope; ice machine manufacture and sale; refrigeration equipment manufacturing, installation, maintenance; refrigeration; load and unload services; housing lease.
Pre-licensing projects: offshore fishing and distant fishing.
(III) Person approves the financial report for disclosed and date for report
The financial report has been approved for report by the Board dated 28 August 2018.
(IV) Scope and changes of consolidated statements during the reporting period
Ended as 30 June 2018, consolidation scope of the Company is as:
four subsidiaries, that is Shandong Zhonglu Fishery Shipping Co., Ltd., Shandong Zhonglu Oceanic (Yantai) Foods
Co., Ltd., HABITAT INTERNATIONAL CORPORATION and Shandong Zhonglu Haiyan Deep-sea Fishery Co.,
Ltd; four sub-subsidiary: AFRICA STAR FISHERIES LIMITED, LAIFFISHERIES COMPANY LIMITED, ZHONG GHA FOODS COMPANY LIMITED and Shandong Zhonglu Ocean Refrigerated Co., Ltd.; and one operation entity with controlling rights obtained through operating lease: YAW ADDO FISHERIES COMPANY LIMITED. Found more in Note VIII. Change of Consolidation Rage and Note IX. Equity in Other entity
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards for Business Enterprise– Basic Standards and specific principle of accounting standards issued by the Ministry of Finance, the Company prepared and formulate the financial statement lies on the followed important accounting policy and estimation.
2. Going concern
The Company have the ability to continue as a going concern within 12 months at least since end of the reporting period, there are no major events that impact the ability to continue as a going concern
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
The Company and subsidiaries determine specific accounting policies and accounting estimation based on their production and operation, which mainly differ in accrual method for bad debt provision of the account receivable, evaluation of inventory, depreciation of fixed assets and intangible assets amortization and recognization time of the revenue etc.
1. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterprise and also a true and thorough reflection to the relevant information as theCompany’s financial position dated 30th June 2018 and the operation results as well as cash flow from January to June in 2018.
2. Accounting period
TheCompany’s accounting year is Gregorian calendar year, namely from 1st January to 31st December of every year. 3. Business cycle
TheCompany’s business cycle is one year (12 months) as a normal cycle, and the business cycle is the determining
criterion for the liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency
5. Accounting methods for consolidation of enterprises under the same control or otherwise
(1) Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under common control satisfies the combination consideration by payment of cash, transfer of non-cash assets or assumption of debt, the carrying value of the net assets of the acquire in combined financial statement of the ultimate controller shared by the Company as at the combination date shall be deemed as the initial investment cost of such long term equity investment. If the equity instrument issued by combining party are consider as the combination consideration, than the total value of the issuing shares are consider as the share capital. The difference between the initial cost of long- term equity investment and book value of consideration (or total face value of the shares issued) paid, capital surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.
(2) Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the fair value of the assets paid, liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control over the acquire as at the acquisition date. As for acquiree that obtained by consolidation not under the same control, the qualified confirmation of identified assets, liability and contingency liabilities should calculated by fair value on day of purchased. If the consolidation cost larger than the fair value amount of indentified net assts fromacquiree’s, the differences should be recognized as goodwill. If the consolidation cost less than the fair value amount of indentified net assts fromacquiree’s, the differences should reckoned into current gains/losses after re- examination.
6. Preparation methods for consolidated financial statements
(1) Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the Company) into consolidated financial statement, including companies controlled by the Company, non-integral part of the investees and structural main body.
(2) Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the necessary adjustment is made on thesubsidiaries’ financial statements in the preparation of the consolidated financial statements according to theCompany’s accounting policies and periods.
(3) Setoff of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the parent company and subsidiaries, which offset the internal transactions incurred between the parent company and subsidiaries and within subsidiaries. Theowner’s equity of the subsidiaries not attributable to the parent company shall be presented as
minority equity under theowner’s equity item in the consolidated balance sheet. The long term equity investment of the parent company held by the subsidiaries, deemed as treasury stock of the corporate group as well as the reduction ofowners’ equity, shall be presented as “Less: treasury stock” under theowners’ equity item in the consolidated balance sheet.
(4) Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under common control, the assets, liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financial statements from the beginning of the financial year in which the combination took place. When preparing the consolidated financial statements, for the subsidiaries acquired from business combination not involving entities under common control, the identifiable net assets of the subsidiaries are adjusted on the basis of their fair values on the date of acquisition.
7. Classification of joint arrangements and accounting treatment of joint operation
(1) Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. Joint arrangements achieved not through separate entities are classified as joint operations. Separate entities refer to the entities with separate identifiable financial architecture including separate legal entities and legally recognized entities without the qualification of legal entity. Joint arrangements achieved through separate entities are generally classified as joint ventures. In case of changes in rights entitled to and obligations undertaken by the parties of joint venture under a joint arrangement due to the changes in relevant facts and circumstances, the parties of joint venture will re-assess the classification of joint arrangements.
(2) Accounting treatment for joint operations
The parties of joint operation should recognize the following items in relation to their share of interest in joint operation, and proceed with accounting in accordance with the relevant provisions under the Accounting Standards for Business Enterprises: to recognize their separate assets or liabilities held, and recognize the assets or liabilities jointly held according to their respective shares; to recognize the income from the disposal of their output share under joint operation; to recognize the income from the disposal of output under joint operation according to their respective shares; to recognize the expenses incurred separately, and recognize the expenses incurred under joint operation according to their respective shares.
For the parties of a joint operation not under common control, if they are entitled to relevant assets and undertake relevant liabilities of the joint operation, accounting will be carried out with reference to the provisions of the parties of joint operation; otherwise, it should be subject to relevant Accounting Standards for Business Enterprises. (3) Accounting treatment for joint ventures
The parties of a joint venture should perform accounting for investments by the joint venture in accordance with the Accounting Standards for Business Enterprises No. 2– Long-term Equity Investments. The parties not under common control should carry out accounting depending on their influence on the joint venture.
8. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is theCompany’s storage cash and deposits available for payment anytime. The cash equivalents recognized in the preparation of the cash flow statements refers to the investment held by the Company with characteristic of short-term, strong mobility, easy transfer to known sum cash and has slim risk from value changes.
9. Foreign currency exchange and the conversion of foreign currency statements
(1) Foreign currency exchange
The foreign currency exchange is booked on the current exchange rate on the transaction day and converted in the bookkeeping standard currency. On the balance sheet day, the monetary items are converted on the current rate on the balance sheet day, concerning the exchange differences between teh spot exchange rate on that date and initial confirmation or the sport exchange rate on previously balance sheet date, should reckoned in to current gains/losses except the capitalizing on exchange differences for foreign specific loans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost are still measured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged. Items of non-monetary foreign currency which was calculated by fair value, should converted by spot exchange rate on the confirmation day of fair value, difference between the converted amount of bookkeeping currency and original amount of bookkeeping currency, was treated as changes of fair value (including exchange rate changed) reckoned into current gains/losses or recognized as other consolidated income.
(2) Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises, and the affiliated enterprises on the bookkeeping standard currency different from theCompany’s, the accounting check and preparation of the consolidated financial statements are made. Assets and liabilities items in the balance sheet, are converted on the current rate on the balance sheet day;owners’ equity items besides the “retained profit” item, the other items are converted on the actual rate. Incomes and expenses items in the profit statement are converted on the current rate. The conversion difference of the foreign currency financial statements is listed specifically in theowners’ equity in the balance sheet. The foreign currency cash flow is converted on the current rate on the cash flow actual day. The cash influenced by the rate fluctuation is listed specifically in the cash flow statement. As for the foreign operation, the conversion difference of the foreign currency statement related to the foreign operation is transferred in proportion into the disposal of the current loss/gain.
10. Financial instruments
(1) Categories and recognition of financial instruments
The financial instruments are classified as the financial assets or liabilities and equity instruments. As the Company becomes one party of the financial instrument contract, the instrument is recognized as one financial asset or liability or equity instruments.
In the initial recognition, the financial assets are classified as, the financial assets measured on fair value and with its changes reckoned into the current loss/gain, long-term invest-bonds, account receivables, and financial assets available for sale. Categories of the financial assets besides account receivables are dependent on the holding intention and purpose of the Company and its subsidiaries for the financial assets. In the initial recognition, the financial liabilities are classified as the financial liabilities measured on the fair value and with its changes reckoned into the current loss/gain, other financial liabilities.
Financial assets measure by fair value and of which the changes are included in the current profits and losses include
the trading financial assets with holding purpose of selling in the short run and the financial assets designated to be measure by fair value in the initial recognition and of which the changes are included in the current profits and losses; receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market; available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition; held-to-maturity investments are non- derivative financial assets with fixed maturity and fixed or determinable payments that management has the positive intention and ability to hold to maturity.
(2) Measurement of financial instruments
In the initial recognition, the financial instruments are measured on fair value; and the follow-up measurements are: financial assets and financial assets available for sale that measured by fair value and with alteration reckoned into current gains/losses together with the financial liabilities that measured by fair value with alteration reckoned into current gains/losses should measured by fair value; the held-to-maturity securities, loans, account receivable and other financial liability are measured by amortized cost; as for the equity instrument investment without quote in an active market and with its fair value cannot be reliably measured, and those derivative financial assets or liability that paid with equity instrument, which have hook with such instrument, should measured by cost. The loss/gain from the fair value changes in the follow-up measurement of the financial assets and liabilities, besides one related to the hedge, is dealt with in the following methods:① The financial assets or liabilities measured on the fair value and with its changes reckoned into the current loss/gain, are reckoned into the fair value loss/gain;② The fair value change of the financial assets available for sale, is reckoned into the other comprehensive income.
(3) Recognition of the fair value for the financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used to confirm their fair values; fair value of the financial instruments which have no active market is confirmed by adoption of estimation technology. The estimation technology mainly including market approach, income approach and cost method
(4) Recognition basis and measurement method for the transfer of financial assets/liabilities
As for the financial assets with all risks and compensations on their patent transferred, or all risks and compensations neither maintained nor transferred but the control over the assets given up, the recognition of the financial asset may terminate. For the financial assets are qualified for the recognition of termination conditions, the measurement may be taken on the financial assets transfer, namely the difference is reckoned into the current loss/gain, between the book value of the transferred financial assets and, the total of the consideration value received from the transfer and the fair value change accumulative sum originally booked into the capital reserve. If the partial transfer satisfies the criteria for derecognition, the entire carrying value of the transferred financial asset shall proportionally allocated between the derecognized portion and the retained portion according to their respective relative fair value. When all or part of the current obligation to a financial liability has been terminated, the entire or part of such financial liability shall be derecognized.
(5) Impairment loss on financial assets
When an impairment loss on a financial asset carried at amortized cost has occurred, the amount of loss is provided for at the difference between theasset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the amount of reversal is recognized in profit
or loss.
When an impairment loss on a financial asset measured at cost has occurred, the amount of loss is provided for at the difference between theasset’s carrying amount and the present value of its estimated future cash flows. The impairment loss on such financial asset is not reversed once it is recognized.
Where there is objective evidence that an impairment loss on available-for-sale financial assets occurs, the cumulative loss arising from the decline in fair value that had been recognized directly in equity is removed from equity and recognized in impairment loss. For en investment in debt instrument classified as available-for-sale on which impairment losses have been recognized, if, in a subsequent period, its fair value increases and the increase can be objectively related to an even occurring after the impairment loss was recognized in profit or loss, the previously recognized impairment loss is reversed and recognized in profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognized, the increase in its fair value in a subsequent period is recognized in equity directly.
For investments in equity instruments, the specific quantitative criteria for the Company to determine “serious” or “not temporary” decrease in their fair value, cost computing method, method for determining closing fair value, and basis for determining the continuous decrease period are set out below:
|||
|-|-|
|Specific quantitative criterion on “serious” decrease in theirfair value|Decrease in closing fair value relative to the cost has reached orexceeded 50%|
|Specific quantitative criterion on “not temporary” decrease intheir fair value|Fall for 12 consecutive months|
|Cost computing method|Consideration of payment at acquisition (net of cash dividends declaredbut not yet paid or due but unpaid interest on bonds) and the relevanttransaction cost are recognized as the investment cost.|
|Method for determining closing fair value|As for a financial instrument for which there is an active market, thequoted prices in the active market shall be used to recognize the fairvalues thereof. Where there is no active market for a financialinstrument, the enterprise concerned shall adopt value appraisaltechniques to determine its fair value.|
|Basis for determining thecontinuous decrease period|The rebound in the continuous fall or the period with the tread of fall isless than 20% margin. Rebound duration not more than six months istreated as continuous decrease period.|

11. Account receivable
(1) Account receivables with single major amount and withdrawal bad debt provision independently
|||
|-|-|
||Book balance of the account receivable with over one millionYuan (one million yean inclusive)|
|Criterion or amount standards of major single amount||
|Withdrawal method for individual bad debt provision accrual|Recognized on the difference between the book value and thecurrent value of the estimative future cash flow|
|with major single amount concerned||

(2) Account receivable with bad debt provision accrual by portfolio
|||
|-|-|
|Portfolio|Accrued method for bad|

|||
|-|-|
|Age portfolio|Aging of accounts|

Withdrawing bad bed provision by aging method in portfolio:
√ Applicable□ Not applicable
||||
|-|-|-|
|||Accrued proportion of other accounts|
|Account ages|Accrued proportion of accounts receivable||
|||receivable|
|Within six months|5.00%|5.00%|
|6 months – 1 year (including 1 year)|10.00%|10.00%|
|1－2 years|30.00%|30.00%|
|2－3 years|50.00%|50.00%|
|Over three years|100.00%|100.00%|

 Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable√ Not applicable
Withdrawing bad bed provision by other methods in portfolio :
□ Applicable√ Not applicable
(3) Account receivable with minor single amount but has individual bad debt provision accrual
|||
|-|-|
||Account receivable with over three years in account age and hasobjective evidence of impairment appears|
|Reasons for individual bad debt prevision accrual||
||Recognized on the difference between the book value and thecurrent value of the estimative future cash flow|
|Accrued method for bad debt provision||

12. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of inventory
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or material used in the process of production or provision of service in the ordinary course of business. Inventory includes raw materials, low value consumables, merchandise in warehouse, supplementary materials and packing materials.
(2)Measurement
Inventories, when delivered, would be determined the actual cost under moving weighted average method. (3)Provision for impairment of inventory
At the balance sheet date, inventory is recorded at the lower of cost and net realizable value on an individual basis. For items with significant quantity and low values, provision is made based on their categories.
Net realizable value of inventories is determined as follows: 1) net realizable value of finished goods is the estimated
selling price less relevant tax and selling expenses. The inventories of the Company mainly refer to longline fishing
tuna. The ending net realizable value is determined at the quotation of Qingshui Fishery Ground of Japan on the date which is the most close to the balance sheet date less the relevant expenses that would occur to realize product sales; 2) for materials held for production, net realizable value equals the cost if the net realizable value of the finished goods produced from the materials exceeds the cost; when the price of raw materials decreases indicating that the net realizable value of the relevant finished goods would be lower than cost, the net realizable value is the estimated selling price less costs to completion, selling expenses and relevant tax; and 3) net realizable value of materials held for sale is the market price.
(4)Inventory stocking system
The Company adopts perpetual inventory system for stocking.
(5)Amortization of low value consumables and packing materials
The Company adopts fifty amortization method for low value consumables and packing materials.
13. Classify to assets available for sale
14. Long term equity investment
(1) Recognition of initial investment cost
Initial investment cost of long term equity investment obtained by corporate consolidation: in the case of the consolidation of enterprises under the same control, recognized as the initial cost is the book value of theowners’ equity obtained from the consolidated party; in the case of the consolidation of enterprises not under the same control, recognized as the initial cost is the recognized consolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, the initial investment cost is the actual purchase payment. As for the long term equity investment obtained by the equity securities offering, the initial investment cost is the fair value of the equity securities. As for the long-term equity investment obtained by debt reorganization, initial investment cost of such investment should determine by relevant regulation of the “Accounting Standards for Business Enterprise No.12- Debt Reorganization”; As for the long term equity investment obtained by the exchange of the non-monetary assets and the debts restructuring, the initial investment cost is recognized on the relevant rules in the Principles. (2) Subsequent measurement and profit or loss recognition
Where the investor has a control over the investee, long-term equity investments are measured using cost method. Long-term equity investments in associates and joint ventures are measured using equity method. Where part of the equity investments of an investor in its associates are held indirectly through venture investment institutions, common fund, trust companies or other similar entities including investment linked insurance funds, such part of equity investments indirectly held by the investor shall be measured at fair value through profit or loss according to according to relevant requirements of Accounting Standards for Business EnterprisesNo.22—Recognization and measurement of Financial Instruments regardless whether the above entities have significant influence on such part of equity investments, while the remaining part shall be measured using equity method.
(3) Basis of conclusion for common control and significant influence over the investee
Joint control over an investee refers to where the activities which have a significant influence on return on certain arrangement could be decided only by mutual consent of the investing parties sharing the control, which includes the sales and purchase of goods or services, management of financial assets, acquisition and disposal of assets, research and development activities and financing activities, etc.; Significant influence on the investee refers to that:
significant influence over the investee exists when holding more than20% but less than50% of the shares with voting rights or even if the holding is below20%, there is still significant influence if any of the following conditions is met: there is representative in the board of directors or similar governing body of the investee; participation in theinvestee’s policy setting process; assign key management to the investee; the investee relies on the technology or technical information of the investing company; or major transactions with the investee.
15. Investment real estate
Measurement for investment real estate
Cost method
Depreciation or amortization method
Category of theCompany’s investment real estate: rented land use rights, rented buildings and land use rights held for transfer after appreciation. Investment real estate of the Company is initially measured by cost and conducting follow-up measures by cost mode.
Accrued on the year averaging is the depreciation of the lease buildings in theCompany’s investment property. The detailed check principle is same as that of the fixed assets. The rented land use rights and land use rights held for transfer after appreciation owned by the Company was adopted line amortization method. Detail calculation policy was similar to intangible assets.
16. Fixed assets
(1) Recognition
The fixed assets are tangible assets held for the goods production, labor supply, lease or operation& management, and with above one-accounting-year service life; meanwhile as up to the following conditions, they are recognized: The economic interest related to the fixed assets probably flow into the Company; The cost of the fixed assets can be measured reliably.
(2) Depreciation method
||||||
|-|-|-|-|-|
|Category|Depreciation method|Depreciation life (year)|Salvage rate|Annual depreciation rate|
|House and building|Straight-line depreciation|20-40|0-10%|2.00%-5.00%|
|Vessel and netting gear|Straight-line depreciation|5-30|3%-5%|3.17%-19.40%|
|Machine equipment|Straight-line depreciation|8-20|0-10%|5.00%-12.00%|
|Transportationequipment||5|0-10%|19.00%-19.40%|
||Straight-line depreciation||||
|Furniture and officeequipment||5|0-10%|19.00%-19.40%|
||Straight-line depreciation||||

The Company's fixed assets mainly include housing and buildings, vessels and netting, machinery and equipment, transportation
equipment, furniture and office equipment; and the depreciation method adopts the straight-line depreciation. The useful life and
estimated net residual value of fixed assets are determined by the nature and use condition of various types of fixed assets. The useful
life, estimated net residual value, and depreciation method of fixed assets are rechecked at the end of the year, if there is difference with the former estimated number, corresponding adjustments should be made. In addition to the fixed assets that have been accrued depreciation and still continue to use and the land that has been separately valued and recorded, the Company counts and draws the depreciation of all fixed assets.
(3) Recognition, evaluation and depreciation of the fixed assets under finance lease
Recognition of fixed assets under finance lease: the nature of this kind of lease is a transfer of all risk and rewards related to the ownership of assets. Measurement of fixed assets under finance lease: the initial amount of a fixed asset under finance lease should be recorded as the lower of fair value of the leased asset at the beginning date of lease term and the present value of minimum lease payment. Subsequent measurement of fixed assets under finance lease should be in accordance with the accounting policies adopted for self-owned fixed assets in respect of provision of depreciation and impairment.
17. Project in progress
Project in progress of the Company divided as self-run construction and out-bag construction. The project in progress of the Company carried forward as fixed assets while the construction is ready for the intended use. Criteria of the expected condition for use should apply one of the follow conditions: The substance construction (installation included) of the fixed assets has completed all or basically; As the projects have been in test production or operation, and the results show that the assets can operate properly and produce the qualified products stably, or the test operation result shows the assets can operate or open properly. The expenditure of the fixed assets on the construction, is a little or little. The fixed assets of the project constructed have been up to the requirements of the design or contract, or basically up to.
18. Borrowing expenses
(1) Recognition principle on capitalization of borrowing expenses
As for theCompany’s actual borrowing expenses directly attributable to the assets construction or production, it is capitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on the actual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capital assets, investment real estate, and inventory reaching the expectant availability or sale ability.
(2) Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The period of capitalization suspended is not included. The capitalization of borrowing expenses should be suspended while the abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction or production.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or the return of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum is recognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, and times the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount or premium
to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interest expenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the future cash flow in the expectant duration period as the current book value of the borrowing.
19. Biological assets
20. Oil-and-gas assets
21. Intangible assets
(1) Accounting method, service life and impairment test
1) Accounting method for intangible assets
TheCompany’s intangible assets are measured initially on cost. The intangible assets purchased in are taken as the actual cost on the actual payment and relevant expenditure. As for the intangible assets invested in by the investors, the actual cost is recognized on the value stipulated in the contract or agreement; however, if what is stipulated in the contract or agreement is not fair value, the actual cost is recognized on fair value. As for the self-developed intangible assets, their cost is the actual total expenditure before reaching the expectant purpose.
The follow-up measurements of theCompany’s intangible assets respectively are: the line amortization method is taken on the intangible assets of finite service life, and at the yea-end, the check is taken on the service life and dilution of the intangible assets, and the corresponding adjustment is made if there is inconsistency with the previous estimative ones. As for the intangible assets of uncertain service life, it is not diluted, however, the service life is checked at year-end; If there is solid evidence to its finite service life, its service life is estimated and diluted in straight line method.
2) Recognition principle of intangible assets with uncertain service life
Recognized as the intangible assets of uncertain service life is refers to those intangible assets of un-expectable period of economic benefits brought into the Company, or of the uncertain service period. Recognition principle of uncertain service life: from contract right or other legal rights, the uncertain service period is stipulated in the contract or law; after the integration of the situations and relevant expertise argumentation in the same trade, the period of the economic interest brought into the Company by the intangible assets still cannot be recognized. At every year-end, the check is taken on the intangible assets of uncertain service life, mainly in bottom-up way, namely the basic check is taken by the department relevant to the assets utilization, to assess whether there is change in the recognition principle of the uncertain service life.
(2) Accounting policy of the internalR&D expenditure
22. Long-term investment impairment
Long-term equity investments, investment properties measured at cost and long-term assets such as fixed assets, construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets and
goodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss are recognized for the amount by which theasset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of anasset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective of whether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonable basis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of the goodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (other than the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of each asset. Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
23. Long-term deferred expenditure
TheCompany’s long-term deferred expenditure are expenses paid out and with one year above (1-year included) benefit period. The long-term unamortized expenses are diluted by periods according to the benefit period. As the long-term unamortized expenses cannot enable the accountingperiod’s beneficiary, all dilution values of the project undiluted yet, are transferred into the current loss/gain.
24. Employees benefits
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profit or loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for the current period. At the time of actual occurrence, TheCompany’s employee benefits are recorded into the profits and losses of the current year or assets associated costs according to the actual amount. The non-monetary employee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injury insurance, maternity insurance and other social insurances, housing fund and labor union expenditure and personnel education that the Company paid for employees, the Company should recognize corresponding employees benefits payable according to the appropriation basis and proportion as stipulated by relevant requirements and recognize the corresponding liabilities and include these expenses in the profits or losses of the current period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable calculated under defined
contribution scheme shall be recognized as a liability and recorded in profit and loss of the current period or in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method and attribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to the service period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlier of the following dates: when the Company can no longer withdraw the offer of those benefits; and when the Company recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefits.
The Company provides other long-term employee benefits to its employees. For those falling within the scope of defined contribution scheme, the Company shall account for them according to relevant requirements of the defined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets of the other long-term employee benefits according to relevant requirements of the defined contribution scheme.
25. Accrual liability
26. Share-based payment
27. Other financial instrument of preferred stock and perpetual capital securities
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
29. Government subsidy
(1) Determination basis and accounting treatment for government grants related to assets
Government grant obtained by the Company for the purpose of constructing or otherwise forming long term assets is recognized as government grant related to assets which will be recognized as deferred income. Deferred income is averagely allocated against the estimated service life of asset since the asset is available for use, and recorded in profit or loss for the current period.
(2) Determination basis and accounting treatment for government grants related to income
The government grants other than the government grants related to assets are recognized as government grants related to income. Government grants related to income shall be treated as follows: those used to compensate relevant expenses or losses to be incurred by the enterprise in subsequent periods are recognized as deferred income and recorded in profit and loss for the current period when such expenses are recognized; and those used to compensate relevant expenses or losses that have been incurred by the enterprise are recorded directly in profit or
loss for the current period.
30. Deferred income tax asset and deferred income tax liability
(1) Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for an item that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law, the tax base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall be determined according to the applicable tax rate in period of assets expected to recover or liability expected to pay off.
(2) The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheet date, if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct the deductible temporary difference, the un-confirmed deferred income tax assts in previous accounting period shall be recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred income tax assets, book value of the deferred income tax assets shall be kept in decreased.
(3) The taxable temporary differences related to the investments of subsidiary companies and associated enterprises shall recognized as deferred income tax liability, unless the Company can control the time of the reverse of temporary differences and the temporary differences are unlikely to be reversed in the expected future. As for the deductible temporary difference related to the investment of the subsidiary companies and associated enterprises, deferred income tax assets shall be recognized while the temporary differences are likely to be reversed in the expected future and it is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary differences.
31. Leasing
(1) Accounting treatment for operating lease
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period.
(2) Accounting treatment for finance lease
At the commencement of the lease term, the Group records the leased asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge, using the effective interest method amortization during the lease term. Minimum lease payments deducting unrecognized financing charges are listed as long-term payables.
32. Other important accounting policy and estimation
Nil
33. Changes in important accounting policies and estimates
(1) Changes in important accounting policies
□ Applicable √ Not applicable
(2) Changes in important accounting estimates
□ Applicable √ Not applicable
34. Other
Nil
VI. Taxes
1. Major tax and tax rate
||||
|-|-|-|
|Taxes|Taxation basis|Tax rate|
|VAT|Output tax minor the deductible input tax|6%, 10%, 16%|
|Urban maintenance and construction tax|Turnover taxes payable|7%|
|Corporate income ax|Taxable amount|Exemption, 8%, 25%|

Explain the different taxation entity of the enterprise income tax
|||
|-|-|
|Taxation entity|Income tax rate|
|Shandong Zhonglu Oceanic Fisheries Company Limited|Imposing no tax on distant fishing, and 25% for the house leasing|
|Shandong Zhonglu Haiyan Oceanic Co., Ltd.|Exemption|
|AFRICA STAR FISHERIES LIMITED|8% for export parts, 25% for domestic sales|
|HABITAT INTERNATIONAL CORPORATION|Exemption|
|Shandong Zhonglu Fishery Shipping Co., Ltd.|25%|
|Shandong Zhonglu Oceanic (Yantai) Foods Co., Ltd.|Imposing no tax on aquatic product processing, and 25% forrefrigeration service|

2. Preferential tax
(1) VAT tax preference:
According to the relevant provisions of the Circular About the Provisional Management Method of Not Levying the Tax on the Aquatic Products Directly Caught by Ocean Fishery Enterprises (SS No.[2000] 260), China's ocean fishery enterprises stipulate on the high seas or in accordance with the relevant agreements that the aquatic products caught in foreign sea areas and sent back for domestic
sales should be regarded as the domestic products and should not be levied the import duties and import VAT. If the corresponding
domestic sales business is the primary agricultural products sales, exempt from the VAT according to the provisions of VAT rules. The
Company's sales revenue from ocean-going fishing operations is exempt from VAT.
(2) Income tax preference:
According to the Circular of the Preferential Policies Concerning Corporate Income Tax (CSZNo.[1994]001), the Letter About Relevant Issue About Accelerating the Development of China's Ocean Fisheries (CN No.[2000] 104) of the Ministry of Finance, the Enterprise Income Tax Law of the People's Republic of China (PRC Presidential Decree No.[2007] 63), the Enforcement Regulations of Enterprise Income Tax Law of the People's Republic of China (PRC State Council Decree No. 512), Notice About Issuing the Preliminary Processing Scope (Trial) of Agricultural Products that Enjoy the Preferential Policy of Enterprise Income Tax of Ministry of Finance and State Administration of Taxation (CS No.[2008]149), and the Supplement Notice About the Preliminary Processing Scope of Agricultural Products that Enjoy the Preferential Policy of Enterprise Income Tax of Ministry of Finance and State Administration of Taxation (CS No.[2011] 26), the processing charges for the preliminary processing of agricultural products can be handled by the tax-exempt items of preliminary processing of agricultural products. The Company's income obtained from the ocean- going fishing business and the preliminary processing of agricultural products is exempted from corporate income tax. The Company's income obtained from the business except for the ocean-going fishing and the preliminary processing of agricultural products should pay the enterprise income tax at25%.
3. Other
VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|2,763,209.95|1,252,378.69|
|Bank deposit|147,370,969.26|145,374,964.71|
|Other monetary fund|1,618,986.78|862,500.14|
|Total|151,753,165.99|147,489,843.54|
|Including: Total amount save aboard|23,098,072.20|8,621,445.18|

 Other explanation
2. Financial assets measured by fair value and with its variation reckoned into current gains/losses
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other explanation:
3. Derivative financial assets
□ Applicable√ Not applicable
4. Note receivable
(1) Category
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Note receivable pledged at period-end
In RMB
|||
|-|-|
|Item|Amount pledged|

(3) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet date
In RMB
||||
|-|-|-|
|Item|De-reorganization amount at period-end|Un de-reorganization amount at period-end|

 (4) Note transferred to account receivable due to the drawer failure to perform at period-end
In RMB
|||
|-|-|
|Item|Amount transferred to account receivable at period-end|

 Other explanation
5. Account receivable
(1) Category of account receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||Book||||||
|||Proportio||Accrualratio|||Proportio||Accrual|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n|||||n||ratio||
|Account receivable||||15.23%|||||||
|with bad debt|52,768,8||8,038,23||44,730,56|46,984,||8,191,680||38,792,912.|
|||100.00%|||||100.00%||17.43%||
|provision accrual by|06.60||8.65||7.95|593.00||.11||89|
|portfolio|||||||||||
||52,768,8||8,038,23|15.23%|44,730,567.95|46,984,||8,191,680||38,792,912.89|
|Total||100.00%|||||100.00%||17.43%||
||06.60||8.65|||593.00||.11|||

Account receivable with major single amount and withdrawal bad debt provision single at period-end:
□ Applicable√ Not applicable
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Account age||||
||Account receivable|Bad debt provision|Accrual ratio|
|Sub-item of within one year||||
|1-6 months|45,950,442.81|2,203,386.98|4.80%|
|7-12 months|1,092,090.28|108,578.16|9.94%|
|Subtotal of within one year|47,042,533.09|2,311,965.14|4.91%|
|Over three years|5,726,273.51|5,726,273.51|100.00%|
|Total|52,768,806.60|8,038,238.65||

Explanation on portfolio basis:
Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable√ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
(2) Bad debt provision accrual, switch-back or taken back in the period
Amount RMB 0 accrual in the Period; amount RMB 153,441.46 switch-back or taken back in the Period
Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
||||
|-|-|-|
|Company|Amount switch back or taken back|Way|
|Liye International|76,934.15|Receivables collected|
|Taiwan Taiyouli Enterprise Co., Ltd.|76,507.31|Receivables collected|
|Total|153,441.46|--|

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

Including major account receivables written-off:
In RMB
|||||||
|-|-|-|-|-|-|
||||||Occurred due to|
|Company|Nature|Amount verified|Reasons|Verified procedures|related transaction|
||||||(Y/N)|

 Explanation on account receivable written-off
(4) Top five receivables collected by arrears party at ending balance
||||
|-|-|-|
|Company|Ending balance|Ratio in total other account receivable (%)|
|TAI UNION ENTERPRISE CO.,LTD|6,682,668.47|12.66%|
|Hong Kong Luen Thai Seafood|6,577,538.62|12.46%|
|Beishui Japan|3,989,380.88|7.56%|
|PANDA|3,600,962.12|6.82%|
|Ameican H&T SEAFOOD INC|3,118,421.99|5.91%|
|Total|23,968,972.08|45.42%|

 (5) Account receivables derecognized due to financial assets transfer
(6) Transfer the account receivable and assets& liabilities arising from further involvement
Other explanation:
6. Prepayments
(1) Prepayments listed by account age
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Account age|||||
||Amount|Proportion|Amount|Proportion|
|Within one year|13,370,603.36|100.00%|18,410,772.78|99.13%|
|1-2 years|0.00|0.00%|162,338.80|0.87%|
|2-3 years|0.00|0.00%|||
|Over 3 years|0.00|0.00%|||
|Total|13,370,603.36|--|18,573,111.58|--|

Explanation on prepayments with over one year in age and reasons of un-settle:
(2) Top 5 prepayments collected by objects at ending balance
||||
|-|-|-|
|Company|Ending balance|Ratio in total prepayment %|
|CARENA SHIP REPAIR|6,254,807.98|46.78%|
|BOSHUN LOGISTICS LIMITED|734084.77|5.49%|
|Dongyi Sea Transporation PersonalCompany|713,176.32|5.33%|

||||
|-|-|-|
|Inspur|501,056.28|3.75%|
|Servotek motor S.L|499,422.77|3.74%|
|Total|8,702,548.12|65.09%|

 Other explanation:
7. Interest receivable
(1) Category
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Major overdue interest
||||||
|-|-|-|-|-|
|||||Whether has impairment|
|Borrower|Closing balance|Overdue time|Causes|occurred and|
|||||determination basis|

 Other explanation:
8. Dividend receivable
(1) Dividend receivable
In RMB
||||
|-|-|-|
|Item (or invested company)|Closing balance|Opening balance|

(2) Major dividend receivable with over one year aged
In RMB
||||||
|-|-|-|-|-|
|||||Whether has impairment|
|Item (or invested|||||
||Closing balance|Age|Causes|occurred and|
|company)|||||
|||||determination basis|

 Other explanation:
9. Other account receivable
(1) Category of other account receivable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Category|||||||
||Book balance|Bad debt provision|Book|Book balance|Bad debt provision|Book value|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Proportio||Accrual|value||Proportio||Accrual||
||Amount||Amount|||Amount||Amount|||
|||n||ratio|||n||ratio||
|Other account||||74.39%|||||||
|receivable with bad|6,605,38||4,913,99||1,691,389|16,219,||4,913,990||11,305,713.|
|||100.00%|||||100.00%||30.30%||
|debt provision|0.34||0.90||.44|704.01||.90||11|
|accrual by portfolio|||||||||||
||6,605,38||4,913,99|74.39%|1,691,389.44|16,219,||4,913,990||11,305,713.11|
|Total||100.00%|||||100.00%||30.30%||
||0.34||0.90|||704.01||.90|||

 Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
□ Applicable√ Not applicable
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Account age||||
||Other account receivable|Bad debt provision|Accrual ratio|
|Sub-item of within one year||||
|1-6 months|1,583,794.30|402,787.73|25.43%|
|6-12 months|68,276.61|6,812.66|9.98%|
|Subtotal of within one year|1,652,070.91|409,600.39|24.79%|
|1-2 years|585,429.52|177,919.07|30.39%|
|2-3 years|81,430.73|40,022.26|49.15%|
|Over three years|4,286,449.18|4,286,449.18|100.00%|
|Total|6,605,380.34|4,913,990.90|74.39%|

 Explanation on portfolio basis:
Withdrawing bad bed provision by percentage of total other accounts receivable outstanding in portfolio
□ Applicable√ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
□ Applicable√ Not applicable
(2) Bad debt provision accrual, switch-back or taken back in reporting period
Amount RMB 0 accrual in the Period; amount RMB 0 switch-back or taken back in the Period.
Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
||||
|-|-|-|
|Company|Amount switch-back or taken back|Way|

(3) Other receivables actually written-off during the reporting period
In RMB
|||
|-|-|
|Item|Amount verified|

Including major other account receivables written-off:
In RMB
|||||||
|-|-|-|-|-|-|
||||||Occurred due to|
|Company|Nature|Amount verified|Reasons|Verified procedures|related transaction|
||||||(Y/N)|

 Explanation on write-off of other receivables:
(4) Classify according to nature
In RMB
||||
|-|-|-|
|Nature|Ending book balance|Opening book balance|
|Receivable export refund tax|0.00|5,540,557.64|
|Margin|148,048.68|421,456.37|
|Insurance claims payment receivable|77,764.04|244,407.54|
|Transactions and others|6,379,567.62|10,013,282.46|
|Total|6,605,380.34|16,219,704.01|

 (5) Top 5 other receivables collected by arrears party at ending balance
In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion in total||
||||||Ending balance of|
|Company|Nature|Ending balance|Account age|other receivables at||
||||||bad debt provision|
|||||period-end||
|Tai Lulun|Transactions andothers|809,272.83|Over three years|||
|||||12.25%|809,272.83|
|Li Henglai|Personal loan|793,341.79|Over one years|12.01%|44,612.35|
|Gao Longxi|Personal loan|432,624.41|Over one years|6.55%|24,327.97|
|Daihatsu|Intercourse funds|288,896.39|Over five years|4.37%|288,896.39|
|DIVING-SEAGULL|Intercourse funds|207,072.50|Over five years|3.13%|207,072.50|
|Total|--|2,531,207.92|--|38.32%|1,374,182.04|

 (6)Account receivable involved government subsidies
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Company|Government subsidies|Ending balance|Ending account age||
|||||estimated to received|

(7) Other account receivables derecognized due to financial assets transfer
(8) Transfer the other account receivable and assets& liabilities arising from further involvement
Other explanation:
10. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Category of inventory
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||price fall-down|||price fall-down||
|Raw materials|155,255,459.29|45,543.42|155,209,915.87|125,849,777.03|45,543.42|125,804,233.61|
|Goods in process|0.00|0.00|0.00|0.00|0.00|0.00|
|Inventory|147,869,434.15|888,594.38|146,980,839.77|98,514,789.13|1,349,243.78|97,165,545.35|
|Revolving|||||||
||1,388,402.18|0.00|1,388,402.18|1,038,881.75|0.00|1,038,881.75|
|material|||||||
|Consumptive|||||||
||0.00|0.00||0.00|0.00|0.00|
|biological assets|||||||
|Assets completed|||||||
|without|||||||
|settlement|||||||
||0.00|0.00||0.00|0.00|0.00|
|resulted from|||||||
|construction|||||||
|contract|||||||
|Low value|||||||
||232,725.45|0.00|232,725.45|688,367.24||688,367.24|
|consumables|||||||
|Goods in transit||||19,047,562.12||19,047,562.12|
|Total|304,746,021.07|934,137.80|303,811,883.27|245,139,377.27|1,394,787.20|243,744,590.07|

 Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange No.4– Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Provision for price fall-down
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Current increased||Current decreased|||
|Items|Opening balance|||Switch back or||Closing balance|
|||Accrual|Other||Other||
|||||Written-off|||
|Raw materials|45,543.42|||||45,543.42|
|Goods in process|0.00|||||0.00|
|Inventory|1,349,243.78|2,053.90||462,703.30||888,594.38|
|Revolving|||||||
||0.00|||||0.00|
|material|||||||
|Consumptive|||||||
||0.00|||||0.00|
|biological assets|||||||
|Assets completed|||||||
|without|||||||
|settlement|||||||
||0.00|||||0.00|
|resulted from|||||||
|construction|||||||
|contract|||||||
|Total|1,394,787.20|2,053.90||462,703.30||934,137.80|

 (3) Explanation on capitalization of borrowing costs in ending balance of inventory
(4) Assets completed without settle resulted by construction contract at period-end
In RMB
|||
|-|-|
|Items|Amount|

Other explanation:
11. Classified as assets held for sale
In RMB
||||||
|-|-|-|-|-|
||||Expected disposal||
|Item|Ending book value|Fair value||Expected disposal time|
||||expenses||

Other explanation:
12. Non-current assets due within one year
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other explanation:
13. Other current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Input VAT|28,802,602.21|29,993,482.01|
|Income tax prepaid||88,480.55|
|Total|28,802,602.21|30,081,962.56|

 Other explanation:
14. Finance asset available for sales
(1) Finance asset available for sales
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Equity instrument available|||||||
||33,000,000.00|33,000,000.00|0.00|33,000,000.00|33,000,000.00|0.00|
|for sales:|||||||
|Measured by cost|33,000,000.00|33,000,000.00|0.00|33,000,000.00|33,000,000.00|0.00|
|Total|33,000,000.00|33,000,000.00||33,000,000.00|33,000,000.00||

(2) Finance asset available for sales measured by fair value at period-end
In RMB
|||||
|-|-|-|-|
|Category|Equity instrument|Debt instrument||
||||Total|
||available for sale|available for sale||

(3) Finance asset available for sales measured by cost at period-end
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision|||||Cash|
|Invested|||||||||Holding|dividend|
|Unit|Period-|Increase in|Decrease|Period-end|Period-|Increase in|Decrease|Period-end i|proportion in|for the|
||||in the||||in the||nvested unit||
||begin|the period|||begin|the period|||||
||||period||||period|||period|
|SouthSecuritiesCo., Ltd.|||||||||||
||33,000,000|||33,000,000|33,000,000|||33,000,000|||
||||||||||0.87%||
||.00|||.00|.00|||.00|||
||33,000,000|||33,000,000|33,000,000|||33,000,000|||
|Total|||||||||--||
||.00|||.00|.00|||.00|||

(4) Impairment reserve of finance asset available for sales
In RMB
|||||
|-|-|-|-|
||Equity instrument|Debt instrument||
|Category|||Total|
||available for sale|available for sale||

(5) Explanation on closing fair value of equity instrument available for sale which was down sharply or other- than-temporary drop without accrual the impairment provision
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Decline changes||||
|||||Time to drop|Accrual||
|Equity instrument|||of fair value|||Reasons without|
||Investment cost|Ending fair value||continuously|impairment||
|available for sale|||comparing with|||accrual|
|||||(month)|amount||
||||its costs||||

Other explanation
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||

(2) Major held-to-maturity investment at Period-end
In RMB
||||||
|-|-|-|-|-|
|Bond|Face value|Coupon rate|Real interest rates|Maturity date|

 (3) Re-classified as held-to-maturity investment in the period
Other explanation
16. Long-term account receivable
(1) Long-term account receivable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Closing balance|||Opening balance||||
||||||||Discount rate|
|Item||Bad debtprovision|||Bad debt|||
||Book balance||Book value|Book balance||Book value|interval|
||||||provision|||

(2) Long-term account receivable derecognition due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement Other explanation
17. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||+,-||||||||||
||||||||||||Ending|
||||||Other||Cash|||||
|||||Investme|||||||balance|
|The||Additiona|||comprehe||dividend|||||
||Opening|||nt gains||Other||||Closing|of|
|invested||l|Capital||nsive||or profit|Impairme||||
||balance|||recognize||equity|||Other|balance|impairme|
|entity||investmen|reduction||income||announce|nt accrual||||
|||||d under||change|||||nt|
|||t|||adjustmen||d to|||||
|||||equity|||||||provision|
||||||t||issued|||||
|I. Joint venture||||||||||||
|II. Associated enterprise||||||||||||

Other explanation
18. Investment real estate
(1) Investment real estate measured at cost
√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Item|House and building|Land use right|Construction in process|Total|
|I. Original book value|||||
|1.Opening balance|47,701,971.19|0.00|0.00|47,701,971.19|
|2.Current increased|0.00|0.00|0.00|0.00|
|(1) Outsourcing|0.00|0.00|0.00|0.00|
|(2) Inventory\fixed|||||
|assets\construction in|0.00|0.00|0.00|0.00|
|process transfer-in|||||
|(3) Increased by|||||
||0.00|0.00|0.00|0.00|
|combination|||||
|3.Current decreased|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer-|0.00|0.00|0.00|0.00|

||||||
|-|-|-|-|-|
|out|||||
|4.Closing balance|47,701,971.19|0.00|0.00|47,701,971.19|
|II. Accumulated|||||
|depreciation and|||||
|accumulated|||||
|amortization|||||
|1.Opening balance|15,121,084.00|0.00|0.00|15,121,084.00|
|2.Current increased|614,928.12|0.00|0.00|614,928.12|
|(1) Accrual or|||||
||614,928.12|0.00|0.00|614,928.12|
|amortization|||||
|3.Current decreased|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer-|||||
||0.00|0.00|0.00|0.00|
|out|||||
|4.Closing balance|15,736,012.12|0.00|0.00|15,736,012.12|
|III. Depreciation reserves|||||
|1.Opening balance|886,512.06|0.00|0.00|886,512.06|
|2.Current increased|0.00|0.00|0.00|0.00|
|(1) Accrual|0.00|0.00|0.00|0.00|
|3. Current decreased|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer-|||||
||0.00|0.00|0.00|0.00|
|out|||||
|4.Closing balance|886,512.06|0.00|0.00|886,512.06|
|IV. Book value|0.00|0.00|0.00|0.00|
|1. Ending Book||||31,079,447.01|
||31,079,447.01|0.00|0.00||
|value|||||
|2. Opening Book||||31,694,375.13|
||31,694,375.13|0.00|0.00||
|value|||||

(2) Investment real estate measure on fair value
□ Applicable√ Not applicable
(3) Investment real estate without property certificate completed
In RMB
||||
|-|-|-|
|Items|Book value|Reasons|

Other explanation
19. Fixed assets
(1) Fixed assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||House and|Vessel and netting|Machine|Transportation|Furniture and||
|Items||||||Total|
||building|gear|equipment|equipment|office equipment||
|I. Original book|||||||
|value:|||||||
|1.Opening|||||||
||116,743,454.93|602,839,486.21|42,657,969.71|5,906,394.19|11,416,499.53|779,563,804.57|
|balance|||||||
|2.Current|||||||
||0.00|2,884,492.16|530,347.43|517,953.68|586,381.26|4,519,174.53|
|increased|||||||
|(1)|||||||
||0.00|2,780,727.63|530,347.43|514,970.73|584,490.08|4,410,535.87|
|Purchasing|||||||
|(2)|||||||
|Construction in|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|progress transfer-|||||||
|in|||||||
|(3) Increased|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|by combination|||||||
|(4)|||||||
|Fluctuations in|0.00|103,764.53|0.00|2,982.95|1,891.18|108,638.66|
|exchange|||||||
|3.Current|||||||
||0.00|1,380,624.37|53,177.78|100,000.00|74,043.21|1,607,845.36|
|decreased|||||||
|(1) Disposal|||||||
||0.00|0.00|53,177.78|100,000.00|73,808.80|226,986.58|
|or scrapping|||||||
|(2)|||||||
|Fluctuations in|0.00|1,380,624.37|0.00|0.00|234.41|1,380,858.78|
|exchange|||||||

||||||||
|-|-|-|-|-|-|-|
|4.Closing|||||||
||116,743,454.93|604,343,354.00|43,135,139.36|6,324,347.87|11,928,837.58|782,475,133.74|
|balance|||||||
|II. Accumulative|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|depreciation|||||||
|1.Opening|||||||
||25,874,051.83|197,594,542.87|17,917,512.15|4,204,646.87|7,840,213.47|253,430,967.19|
|balance|||||||
|2.Current|||||||
||1,330,615.14|16,170,758.67|1,525,732.61|274,720.11|313,177.59|19,615,004.12|
|increased|||||||
|(1) Accrual|1,330,615.14|16,170,758.67|1,525,732.61|274,720.11|313,177.59|19,615,004.12|
||0.00|0.00|0.00|0.00||0.00|
|3.Current|||||||
||0.00|0.00|31,963.39|90,000.00|69,694.47|191,657.86|
|decreased|||||||
|(1) Disposal|||||||
||0.00|0.00|31,963.39|90,000.00|69,694.47|191,657.86|
|or scrapping|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|4.Closing|||||||
||27,204,666.97|213,765,301.54|19,411,281.37|4,389,366.98|8,083,696.59|272,854,313.45|
|balance|||||||
|III. Depreciation|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|reserves|||||||
|1.Opening|||||||
||0.00|157,573.50|0.00|0.00|0.00|157,573.50|
|balance|||||||
|2.Current|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|increased|||||||
|(1) Accrual|0.00|0.00|0.00|0.00|0.00|0.00|
||0.00|0.00|0.00|0.00|0.00|0.00|
|3.Current|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|decreased|||||||
|(1) Disposal|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|or scrapping|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|4.Closing|||||||
||0.00|157,573.50|0.00|0.00|0.00|157,573.50|
|balance|||||||
|IV. Book value|0.00|0.00|0.00|0.00|0.00|0.00|
|1. Ending|||||||
||89,538,787.96|390,420,478.96|23,723,857.99|1,934,980.89|3,845,140.99|509,463,246.79|
|Book value|||||||
|2. Opening|||||||
||90,869,403.10|405,087,369.84|24,740,457.56|1,701,747.32|3,576,286.06|525,975,263.88|
|Book value|||||||

(2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Depreciation|Impairment|||
|Items|Original book value|||Book value|Note|
|||accumulative|provision|||

(3) Fixed assets leasing-in by financing lease
In RMB
||||||
|-|-|-|-|-|
|||Depreciation|||
|Items|Original book value||Impairment provision|Book value|
|||accumulative|||

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

(5) Fixed assets without property certificate obtained
In RMB
||||
|-|-|-|
|Items|Book value|Reasons for certificate un-settled|

 Other explanation
Pursuant to the Debt Compensation Opinion entered into between the Company and Shandong Aquatic Products Group in April 2006 and the civil verdict issued by People Court of Lixia district of Jinan city (2005 LZZDi-1299), the comprehensive office building owned by Shandong Aquatic Products Group at No.43, Heping road, Lixia District, Jinan with original value of RMB54,221,197.05 (among which, RMB9,592,434.61 was recorded as fixed assets and others were recorded as investment property) was ruled to be vested to the Company, so as to compensate the relevant debts. Building ownership transfer has not been registered yet; management of the Company is in the process of making active coordination among various parties seeking for early completion of such registration. 20. Construction in progress
(1) Construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Renovation of thesewage treatment|||||||
||15,213.68|0.00|15,213.68||||
|Atlantic fencing|4,077,658.55|4,077,658.55|0.00|4,077,658.55|4,077,658.55|0.00|
|Total|4,092,872.23|4,077,658.55|15,213.68|4,077,658.55|4,077,658.55||

(2) Changes of major project in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Accumul||||
||||||||Proporti|||Includin|||
||||||||||ative||||
||||||||on of|||g:|||
|||||Transfer|Other||||amount||||
|||Opening|Current|||Ending|project|Work||interest|Capitaliz|Capital|
|Item|Budget|||to fixed|decreasin||||of||||
|||balance|increased|||balance|investme|progress||capitaliz|ing rate|resources|
|||||assets|g||||interest||||
||||||||nt in|||ation in|||
||||||||||capitaliz||||
||||||||budget|||Period|||
||||||||||ation||||

(3) Impairment provision of construction in process accrual in the Period
In RMB
||||
|-|-|-|
|Items|Accrual amount|Reasons|

Other explanation
21. Engineering material
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation:
22. Disposal of fixed assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation:
23. Productive biological assets
(1) Measured by cost
□ Applicable√ Not applicable
(2) Measured by fair value
□ Applicable√ Not applicable
24. Oil/gas assets
□ Applicable√ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Non-patented|||
|Items|Land use right|Patent right||Computer software|Total|
||||technology|||
|I. Original book||||||
|value||||||
|1.Opening||||||
||17,154,729.00|||1,031,396.71|18,186,125.71|
|balance||||||
|2.Current||||||
|increased||||||
|(1) Purchasing||||||
|(2) Internal||||||
|R&D||||||
|(3) Increased by||||||
|combination||||||
|3.Current||||||
|decreased||||||
|(1) Disposal||||||
|4.Closing||||||
||17,154,729.00|||1,031,396.71|18,186,125.71|
|balance||||||
|II. Accumulated||||||
|amortization||||||
|1.Opening||||||
||4,453,772.33|||236,405.62|4,690,177.95|
|balance||||||
|2.Current||||||
||191,935.08|||84,833.78|276,768.86|
|increased||||||
|(1) Accrual|191,935.08|||84,833.78|276,768.86|
|3.Current||||||
|decreased||||||
|(1) Disposal||||||
|4.Closing|4,645,707.41|||321,239.40|4,966,946.81|

|||||
|-|-|-|-|
|balance||||
|III. Depreciation||||
|reserves||||
|1.Opening||||
|balance||||
|2.Current||||
|increased||||
|(1) Accrual||||
|3.Current||||
|decreased||||
|(1) disposal||||
|4.Closing||||
|balance||||
|IV. Book value||||
|1. Ending Book||||
||12,509,021.59|710,157.31|13,219,178.90|
|value||||
|2. Opening||||
||12,700,956.67|794,991.09|13,495,947.76|
|Book value||||

The proportion of intangible assets form by internalR&D in total book value of intangible assets at period-end.
(2) Land use right without property certificate completed
In RMB
||||
|-|-|-|
|Items|Book value|Reasons|

Other explanation:
26. Development expenses
In RMB
||||||
|-|-|-|-|-|
||Opening|||Closing|
|Items||Current increased|Current decreased||
||balance|||balance|

 Other explanation
27. Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|The invested|||||
|entity of events|||||
||Opening balance|Increase during the period|Decrease during this period|Closing balance|
|with goodwill|||||
|resulted|||||

(2) Impairment provision of goodwill
In RMB
||||||
|-|-|-|-|-|
|The invested|||||
|entity of events|||||
||Opening balance|Increase during the period|Decrease during this period|Closing balance|
|with goodwill|||||
|resulted|||||

Explain the impairment testing, parameter and recognition method of the impairment losses of goodwill:
Other explanation
28. Long-term deferred expenditure
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Opening balance|Current increased|Amortized in Period|Other decreased|Closing balance|
|Amortization ofdecoration in HQ||||||
||516,181.25||106,796.10||409,385.15|
|Total|516,181.25||106,796.10||409,385.15|

 Other explanation
29. Deferred income tax asset /deferred income tax liability
(1) Deferred income tax assets un-offset
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||differences|asset|differences|asset|
|Asset impairment|||||
||7,946,784.20|1,986,696.05|1,146,784.18|286,696.05|
|provision|||||
|Total|7,946,784.20|1,986,696.05|1,146,784.18|286,696.05|

 (2) Deferred income tax liabilities un-offset
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

|||||
|-|-|-|-|
|Taxable temporary|Deferred income tax|Taxable temporary|Deferred income tax|
|differences|liability|differences|liability|

 (3) Amount of deferred income tax asset and deferred income tax liability after trade-off
In RMB
||||||
|-|-|-|-|-|
|||Ending balance of|Trade-off between the|Opening balance of|
||Trade-off between the||||
|||deferred income tax|deferred income tax|deferred income tax|
|Items|deferred income tax||||
|||assets or liabilities after|assets and liabilities at|assets or liabilities after|
||assets and liabilities||||
|||off-set|period-begin|off-set|
|Deferred tax assets||1,986,696.05||286,696.05|

 (4) Deferred income tax asset without confirmed
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

(5) Deductible losses of deferred income tax asset without confirmed will expired in later year
In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Note|

Other explanation:
30. Other non-current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Account for lands paid in advance|2,000,000.00|2,000,000.00|
|Account for equipment paid in advance|1,316,360.85|1,527,165.98|
|Software|285,524.92||
|Total|3,601,885.77|3,527,165.98|

 Other explanation:
31. Short-term borrowing
(1) Category of short-term borrowing
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Mortgage loan|36,000,000.00|36,000,000.00|

||||
|-|-|-|
|Guaranteed loan|27,607,615.40|100,000,000.00|
|Credit loan|0.00|40,394,931.62|
|Total|63,607,615.40|176,394,931.62|

 Explanation on category of short-term borrowing:
(2) Short-term loans un-paid by expired
Total short-term loans un-paid by expired at end of the Period was 0 Yuan, including important short-term loans are as:
In RMB
||||||
|-|-|-|-|-|
|Unit|Ending balance|Loans rate|Overdue time|Overdue interest rate|

 Other explanation:
32. Financial liability measured by fair value and with its variation reckoned into current gains/losses In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other explanation:
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
||||
|-|-|-|
|Category|Closing balance|Opening balance|

Totally Yuan due note payable are paid at period-end.
35. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Within one year (one year included)|87,901,649.88|57,101,822.73|
|Over one year|4,816,644.84|8,102,435.25|
|Total|92,718,294.72|65,204,257.98|

 (2) Major account payable over one year
In RMB
||||
|-|-|-|
|Items|Closing balance|Reasons of un-paid or carry-over|

 Other explanation:
36. Account received in advance
(1) Account received in advance
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Within one year (one year included)|28,248,806.80|19,187,510.18|
|Over one year|349,863.72|687,612.58|
|Total|28,598,670.52|19,875,122.76|

 (2) Major account received in advance with over one year age
In RMB
||||
|-|-|-|
|Items|Closing balance|Reasons of un-paid or carry-over|

 (3) Projects un-completed but settled from construction contract at end of the Period
In RMB
|||
|-|-|
|Items|Amount|

Other explanation:
37. Salary payable
(1) Salary payable
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||
|I. Short-term compensation|42,768,314.83|55,311,014.53|61,335,587.04|36,743,742.32|
|II. Post-employment|||||
|welfare- defined|37.70|2,946,596.06|2,946,595.58|38.18|
|contribution plans|||||
|III. Dismissal welfare|85,822.26|867,333.21|915,380.14|37,775.33|
|Total|42,854,174.79|59,124,943.80|65,197,562.76|36,781,555.83|

(2) Short-term compensation
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||
|1. Wages , bonuses, allowances|||||
||41,301,145.50|49,377,454.08|55,416,422.02|35,262,177.56|
|and subsidies|||||
|2. Welfare for workers|||||
|||2,330,704.08|2,330,704.08||
|and staff|||||
|3. Social insurance||2,033,086.45|2,033,086.45||
|Including: Medical|||||
|||1,637,792.47|1,637,792.47||
|insurance|||||
|Work injury|||||
|||129,303.32|129,303.32||
|insurance|||||
|Maternity|||||
|||265,990.66|265,990.66||
|insurance|||||
|4. Housing accumulation|||||
|||1,404,582.58|1,404,582.58||
|fund|||||
|5. Labor union|||||
|expenditure and|||||
||1,467,169.33|165,187.34|150,791.91|1,481,564.76|
|personnel education|||||
|expense|||||
|Total|42,768,314.83|55,311,014.53|61,335,587.04|36,743,742.32|

 (3) Defined contribution plans
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||
|1. Basic endowment|||||
||37.70|2,716,797.18|2,716,796.70|38.18|
|insurance|||||
|2. Unemployment|||||
|||136,182.58|136,182.58||
|insurance|||||
|4. Other||93,616.30|93,616.30||
|Total|37.70|2,946,596.06|2,946,595.58|38.18|

 Other explanation:
38. Tax payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Value-added tax|208,070.33|298,473.86|
|Enterprise income tax|1,313,801.17|2,271,827.08|
|Individual income tax|93,776.47|119,102.33|
|Urban maintenance and construction tax|3,875.86|32,054.49|
|House property tax|260,204.69|273,051.86|
|Land use tax|60,465.18|158,804.18|
|Educational additional|1,288.92|22,896.07|
|Other tax|628,883.96|202,488.32|
|Total|2,570,366.58|3,378,698.19|

 Other explanation:
39. Interest payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Interest payable for short-term loans|190,417.41|360,208.32|
|Total|190,417.41|360,208.32|

 Interest overdue without paid:
In RMB
||||
|-|-|-|
|Borrower|Amount overdue|Reasons|

Other explanation:
40. Dividend payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation, including dividend payable unpaid over one year, and explain the reasons:
41. Other payable
(1) Classification of other payable according to nature of account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Cash deposit|1,008,496.75|633,984.87|
|Employee cost|3,206,073.36|1,259,769.66|
|Other|3,498,748.07|4,281,598.23|

||||
|-|-|-|
|Total|7,713,318.18|6,175,352.76|

 (2) Significant other payable with over one year age
In RMB
||||
|-|-|-|
|Items|Closing balance|Reasons of un-paid or carry-over|

 Other explanation
42. Classified as liabilities held for sale
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation:
43. Non-current liabilities due within one year
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Deferred income due within one year|433,292.75|866,585.48|
|Total|433,292.75|866,585.48|

 Other explanation:
44. Other current liability
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Changes of short-term payable bonds:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amortizat|||
||||||||Interest|ion of|||
||Face|Issuing|Bond|Issue|Opening|Issued in|accrual|premium|Paid in|Closing|
|Bond|||||||||||
||value|date|period|amount|balance|the Period|by face|price and|the Period|balance|
||||||||value|conversio|||
|||||||||n|||

Other explanation:
45. Long-term loans
(1) Classification of long-term loans
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Explanation on category of long-term loans:
Other explanation, including interest rate section:
46. Bonds payable
(1) Bonds payable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Changes of bond payable (excluding other financial instrument of preferred stock and perpetual capital securities that classified as financial liability)
In RMB (3) Condition of convertible bonds and time of transferring
(4) Other financial instrument classified as financial liabilities
Outstanding preferred stock and perpetual capital securities at period-end
Changes of the outstanding preferred stock and perpetual capital securities at period-end
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Period-begin||Increase during the period||Decrease during this period||Period-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

Explanations on basis of other financial instrument classified into financial liabilities
Other explanation
47. Long-term account payable
(1) Listed by nature
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation:
48. Long-term employee payable
(1) Long-term employee payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

||||
|-|-|-|
|II. Dismiss welfare|312,742.86|312,742.86|
|III. Other long-term welfare|1,264,924.77|1,264,924.77|
|Total|1,577,667.63|1,577,667.63|

 (2) Change of defined benefit plan
Present value of the obligation of defined benefit plan:
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Scheme assets:
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Net liability(assets) of the defined benefit plan
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Contents of defined benefit plan and the risks associate thereof, influences upon theCompany’s future cash flow, timing and uncertainty: The material actuary assumption and sensitive analysis relating to defined benefit plan is explained as follows:
Other explanation:
49. Special payable
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the|Decrease during this|||
|Items|Opening balance|||Closing balance|Causes|
|||period|period|||

Other explanation:
50. Accrued liabilities
In RMB
|||||
|-|-|-|-|
|Items|Closing balance|Opening balance|Causes|

Other explanation, including relevant important hypothesis and estimation:
51. Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the|Decrease during this|||
|Items|Opening balance|||Closing balance|Causes|
|||period|period|||
||||||Governmentsubsidies related to|
|Government grants|9,705,869.14|||9,705,869.14||

|||||
|-|-|-|-|
||||assets|
|Total|9,705,869.14|9,705,869.14|--|

Item with government subsidy concerned:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amount|Amount|||||
|||Subsidy|reckoned into|reckoned into||||Assets-|
||||||Cost||||
||Opening|increase|non-|non-||Other|Closing|related/|
|Item|||||reduction in||||
||balance|during this|operation|operation||changes|balance|Income-|
||||||the period||||
|||period|revenue in|revenue in||||related|
||||the Period|the period|||||
|Construction||||||||Assets-|
||9,029,572.50||||||9,029,572.50||
|special fund||||||||related|
|Financial|||||||||
|||||||||Assets-|
|ship-building|676,296.64||||||676,296.64||
|||||||||related|
|discount|||||||||
|Total|9,705,869.14||||||9,705,869.14|--|

 Other explanation:
52. Other non-current liability
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

Other explanation:
53. Share capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes in the Period (+,-)||||||
||Opening|||Shares transfer|||Closing|
|||Issuing new||||||
||balance||Bonus shares|from public|Other|Subtotal|balance|
|||shares||||||
|||||reserves||||
|Total shares|266,071,320.00||||||266,071,320.00|

 Other explanation:
54. Other equity instrument
(1) Other financial instrument of outstanding preferred stock and perpetual capital securities at period-end (2) Changes of financial instrument of outstanding preferred stock and perpetual capital securities at period- end
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Period-begin||Increase during the period||Decrease during this period||Period-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

Changes of other equity instrument, explanation on changes and basis of relevant accounting treatment:
Other explanation:
55. Capital surplus
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||
|Capital premium (equity|||||
||185,036,701.86|7,354,410.04||192,391,111.90|
|premium)|||||
|Other Capital surplus|94,961,504.96|||94,961,504.96|
|Total|279,998,206.82|7,354,410.04||287,352,616.86|

 Other explanation, including changes and reasons of changes:
A premium resutled by additional investment to Haiyan Company from the Company and other shareholdres
56. Treasury stock
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||

Other explanation, including changes and reasons for changes:
57. Other consolidated income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Current Period||||||
|||Account|Less: written in||Belong to|Belong to||
||Opening||||||Closing|
|Items||||||||
|||before|other|Less : income|parent|minority||
||balance||||||balance|
|||income tax in|comprehensive|tax expense|company after|shareholders||
|||the period|income in||tax|after tax||

||||||||
|-|-|-|-|-|-|-|
||||previous period||||
||||and carried||||
||||forward to gains||||
||||and losses in||||
||||current period||||
|(II) Other comprehensive income||||-14,135.54||-|
|items which will be reclassified|-6,075,014.12|-23,938.25|||-9,802.71|6,089,149|
|subsequently to profit or loss||||||.66|
|||||-14,135.54||-|
|Translation differences of foreign|||||||
||-6,075,014.12||||-9,802.71|6,089,149|
|financial sheet|||||||
|||||||.66|
|Total of other consolidated income|-6,075,014.12|-23,938.25||-14,135.54|-9,802.71|-6,089,149.66|

 Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment for the arbitraged items:
58. Reasonable reserve
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||

Other explanation, including changes and reasons for changes:
59. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Items|Opening balance|||Closing balance|
|||period|period||
|Statutory surplus|||||
||21,908,064.19|||21,908,064.19|
|reserves|||||
|Total|21,908,064.19|||21,908,064.19|

 Other explanation, including changes and reasons for changes:
60. Retained profit
In RMB
||||
|-|-|-|
|Items|This period|Last period|
|Retained profits at the end of last year beforeadjustment|||
||141,867,217.06|50,349,731.78|
|Retained profits at the beginning of the period|141,867,217.06|50,349,731.78|

||||
|-|-|-|
|after adjustment|||
|Add: net profit attributable to owners of parentcompany|||
||22,601,899.21|91,517,485.28|
|Retained profit at period-end|164,469,116.27|141,867,217.06|

 Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan. 5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and cost
In RMB
||||||
|-|-|-|-|-|
||Current Period||Last Period||
|Items|||||
||Income|Cost|Income|Cost|
|Main operating|437,116,744.01|373,729,371.53|435,825,365.50|377,649,192.30|
|Other operating|3,206,032.96|768,677.02|4,352,726.25|718,241.91|
|Total|440,322,776.97|374,498,048.55|440,178,091.75|378,367,434.21|

 62. Tax and surcharges
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|City maintenance and construction tax|139,594.98|305,392.09|
|Educational surtax|61,569.29|218,131.38|
|House property tax|607,009.39|740,050.43|
|Land use tax|218,430.35|315,805.99|
|Vehicle and vessel tax|27,829.36|27,664.36|
|Stamp tax|231,386.95|54,922.03|
|Local education surcharge|38,141.42|5.83|
|Local water conservancy construction fund|9,542.49|43,464.74|
|Total|1,333,504.23|1,705,436.85|

 Other explanation:
63. Sales expenses
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Payroll payable|852,719.42|734,426.40|
|Port surcharge|2,928,162.72|355,592.64|
|Freight and miscellaneous charges|8,957,747.30|2,851,332.58|
|Agency fee|255,376.76|14,224.60|
|Travelling charge|153,803.20|11,898.35|
|Business publicity expenses|105,953.82|86,618.05|
|Other|1,589,461.18|27,210.86|
|Total|14,843,224.40|4,081,303.48|

 Other explanation:
64. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Payroll payable|11,111,601.32|9,212,316.46|
|Depreciation|2,405,402.31|556,028.52|
|Travelling charge|1,309,331.01|1,054,696.16|
|Business entertainment expenses|556,056.12|555,868.54|
|Cost tax|2,735.00||
|Vehicles charge|265,734.24|125,250.73|
|Attorney charge|1,236,913.74|813,954.48|
|Office allowance|204,880.72|212,314.01|
|Property water and electricity|476,256.21|153,112.13|
|Amortization of intangible assets|276,317.60|195,735.06|
|Other|5,200,391.39|3,314,423.72|
|Total|23,045,619.66|16,193,699.81|

 Other explanation:
65. Financial expenses
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Interest costs|3,082,690.15|2,891,553.08|

||||
|-|-|-|
|Less: interest income|174,711.83|352,460.61|
|Exchange loss|15,660,397.91|4,141,704.98|
|Less: exchange gains|15,348,305.26|562,848.61|
|Handing expense|403,277.17|330,949.94|
|Other expense|66,640.42|68,814.21|
|Total|3,689,988.56|6,517,713.00|

 Other explanation:
66. Losses on assets impairment
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Bad debt losses|-153,441.46|10,500.00|
|II. Provision for falling price of inventory|2,053.90||
|Total|-151,387.56|10,500.00|

 Other explanation:
67. Gains from changes of fair value
In RMB
||||
|-|-|-|
|Source of gains from changes of fair value|Current Period|Last Period|

Other explanation:
68. Gains on investment
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

Other explanation:
69. Income from assets disposal
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Income from assets disposal|-18,990.79|262,776.33|
|Total|-18,990.79|262,776.33|

70. Other income
In RMB
||||
|-|-|-|
|Sources|Current Period|Last Period|
|Financial ship-building discount|14,188.00||
|Government grants|419,104.74||
|Total|433,292.74||

71. Non-operating expenditure
In RMB
|||||
|-|-|-|-|
||||Amount reckoned in current|
|Items|Current Period|Last Period||
||||non-recurring gains/losses|
|Government subsidy||433,292.74||
|Indemnity from insurancecompany||||
|||205,791.69||
|Other||9,117.16||
|Total|0.00|648,201.59||

Government subsidy reckoned into current gains/losses:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Subsidy|||||
|||||impact|The special|||Assets-|
||Issuing|Offering||||Amount in|Amount in||
|Item|||Nature|current|subsidy|||related/incom|
||subject|causes||||the Period|last period||
|||||gains/losses|(Y/N)|||e-related|
|||||(Y/N)|||||
|Financialship-buildingdiscount|||||||||
|||||||||Assets-|
|||Subsidy||Y|N||14,188.00||
|||||||||related|
|Specialconstructionfund|||||||||
|||||||||Assets-|
|||Subsidy||Y|N||419,104.74||
|||||||||related|
|Total|--|--|--|--|--||433,292.74|--|

 Other explanation:
72. Non-operating expenses
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Item|Current Period|Last Period||
||||non-recurring profits or losses|
|Loss of non-current assetsscrape|3,772.45|399.90||
||||3,772.45|
|Additional overdue find of state||4,282.38||

|||||
|-|-|-|-|
|taxes||||
|Other expense|423,335.93|295,719.88|423,335.93|
|Total|427,108.38|300,402.16|427,108.38|

 Other explanation:
73. Income tax expenses
(1) Statement of income tax expense
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Current income tax expense|1,922,681.98|453,724.36|
|Total|1,922,681.98|453,724.36|

 (2) Adjustment on accounting profit and income tax expenses
In RMB
|||
|-|-|
|Items|Current Period|
|Total profit|23,050,972.70|
|Income tax based on statutory/applicable rate|1,922,681.98|
|Income tax expense|1,922,681.98|

 Other explanation
74. Other comprehensive income
See Note 57.
75. Items of statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Intercourse funds and others|87,228,597.67|43,104,120.67|
|Total|87,228,597.67|43,104,120.67|

 Explanation on other cash received in relation to operation activities:
(2) Other cash paid in relation to operation activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Expenses of management cash paid|3,704,943.53|4,119,883.15|
|Sales expenses paid in cash|8,960,979.71|1,234,748.50|
|Intercourse funds and others|114,772,392.52|49,044,939.72|
|Total|127,438,315.76|54,399,571.37|

 Explanation on other cash paid in relation to operation activities:
(3) Cash received from other investment activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Explanation on cash received from other investment activities
(4) Cash paid related with investment activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Explanation on Cash paid related with investment activities:
(5) Other cash received in relation to financing activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Explanation on other cash received in relation to financing activities:
(6) Cash paid related with financing activities
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

Explanation on cash paid related with financing activities:
76. 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|21,128,290.72|33,458,855.80|

||||
|-|-|-|
|Add: Assets impairment provision|-151,602.06|-1,943,630.88|
|Depreciation of fixed assets, consumption of|||
|oil assets and depreciation of productive|18,855,673.47|15,751,219.98|
|biology assets|||
|Amortization of intangible assets|276,768.86|195,735.06|
|Amortization of long-term retained expense|106,796.10||
|Loss from disposal of fixed assets, intangible|||
|assets and other long-term assets(gain is|18,990.79|-247,813.32|
|listed with “-”)|||
|Financial expenses (gain is listed with “-”)|3,689,988.56|2,891,561.26|
|Decrease of deferred income tax assets|||
||-1,700,000.00||
|(increase is listed with “-”)|||
|Decrease of inventory (increase is listed with|||
||-60,067,293.20|-55,276,389.67|
|“-”)|||
|Decrease of operating receivable accounts|||
||8,879,176.83|-1,486,025.93|
|(increase is listed with “-”)|||
|Increase of operating payable accounts|||
||30,777,822.24|24,532,644.24|
|(decrease is listed with “-”)|||
|Net cash flow arising from operating|21,814,612.31|17,876,156.54|
|activities|||
|2. Material investment and financing not|||
||--|--|
|involved in cash flow|||
|3. Net change of cash and cash equivalents:|--|--|
|Balance of cash at period end|150,574,179.21|102,884,493.47|
|Less: Balance of cash equivalent at year-|||
||147,067,351.82|129,521,203.29|
|begin|||
|Net increasing of cash and cash equivalents|3,506,827.39|-26,636,709.82|

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

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

Other explanation:
(4) Constitution of cash and cash equivalent:
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Ⅰ. Cash|150,574,179.21|147,067,351.82|
|Including: Cash on hand|2,763,209.95|1,252,378.69|
|Bank deposit available for payment|||
||146,411,982.48|145,374,973.13|
|at any time|||
|Other monetary fund available for|||
||1,398,986.78|440,000.00|
|payment at any time|||
|Ⅲ. Balance of cash and cash equivalent at|150,574,179.21|147,067,351.82|
|period-end|||

Other explanation:
77. Notes of changes ofowners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
78. Assets with ownership or use right restricted
In RMB
||||
|-|-|-|
|Item|Ending book value|Restriction reasons|
|||Other monetary fund, L/C Guaranteedeposits|
|Monetary fund|1,178,986.78||
|Fixed assets|69,106,984.16|Real estate, mortgage bank|
|Intangible assets|12,764,639.81|Lands, mortgage bank|
|Total|83,050,610.75|--|

Other explanation:
79. Item of foreign currency
(1) Item of foreign currency
In RMB
|||||
|-|-|-|-|
||Closing balance of foreign|||
|Items||Rate of conversion|Ending RMB balance converted|
||currency|||
|Monetary funds|--|--||
|Including: USD|10,237,220.64||67,735,594.09|
|||6.6166||
|EUR|30,637.79||234,425.05|
|||7.6515||
|HKD||||
|JPY|10,419,926.00||624,299.45|
|||0.059914||
|XOF|135,000.00||1,761.48|
|||0.013048||
|CEDI|8,080,363.33||11,828,843.88|
|||1.4639||
|Accounts receivable|--|--||
|Including: USD|3,636,860.28||24,063,649.73|
|||6.6166||
|EUR||||
|HKD||||
|JPY|158,587,384.00||9,501,604.52|
|||0.059914||
|Long term borrowing|--|--||
|Including: USD||||
|EUR||||
|HKD||||
|JPY||||

Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity, disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping currency changed, explain reasons
√Applicable□ Not applicable
|||||
|-|-|-|-|
|Major foreign operation entity|Foreign main operation|Book-keping|Basis|

|||||
|-|-|-|-|
||place|currency||
|HABITAT INTERNATIONAL CORPORATION|Panama|CNY|The economic environmentin the operation sites|
|LAIF FISHERIES COMPANY LIMITED|Garner|USD|The economic environmentin the operation sites|
|YAW ADDO FISHERIES COMPANY LIMITED|Garner|USD|The economic environmentin the operation sites|
|ZHONG GHA FOODS COMPANY LIMITED|Garner|USD|The economic environmentin the operation sites|
|AFRICA STAR FISHERIES LIMITED|Garner|USD|The economic environmentin the operation sites|

 80. Hedging
Disclosed hedging items and relevant hedging instrument based onhedging’s category, disclosed qualitative and quantitative information for the arbitrage risks:
81. Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
(1) Enterprise consolidation not under the same control
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income ofacquiree frompurchasingdate toperiod-end|Net profit of|
|||||||Standard to|||
||Time point|Cost of|Ratio of|Acquired||||acquiree from|
||||||Purchasing|determine the|||
|Acquiree|for equity|equity|equity|way Equity||||purchasing|
||||||date|purchasing|||
||obtained|obtained|obtained|obtained way||||date to|
|||||||date|||
|||||||||period-end|

 Other explanation:
(2) Combination cost and goodwill
In RMB
||
|-|
|Combination cost|

Determination method for fair value of the combination cost and contingent consideration and changes:
Main reasons for large goodwill resulted:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
|||
|-|-|
|Fair value on purchasing date|Book value on purchasing date|

 Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in the Period or not
□Y√N
(5) On purchasing date or period-end of the combination, combination consideration or fair value of identifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other explanation
2. Enterprise combined under the same control
(1) Enterprise combined under the same control in the Period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Income of the|Net profit of|||
||||||combined|the combined|||
||||||||Income of the|Net profit of|
||||||party from|party from|||
|||Basis of||Standard to|||combined|the combined|
||Equity ratio||||period-begin|period-begin|||
|||combined|Combination|determine the|||party during|party during|
|Acquiree|obtained in||||of|of|||
|||under the|date|combination|||the|the|
||combination||||combination|combination|||
|||same control||date|||comparison|comparison|
||||||to the|to the|||
||||||||period|period|
||||||combination|combination|||
||||||date|date|||

Other explanation:
(2) Combination cost
In RMB
||
|-|
|Combination cost|

Explanation on contingent consideration and its changes:
Other explanation:
(3) Assets and liability of the combined party on combination date
In RMB
|||
|-|-|
|Combination date||
||Ending period of last year|

 Contingent liability of the combined party bear during combination
Other explanation:
3. Counter purchase
Basic information of transactions, basis of transactions constituting counter purchase, whether assets and liabilities reserved by listed companies constituting business and their basis, confirmation of combined cost, the amount occurred when adjusting rights and interests in accordance with equity transaction and its calculation:
4. Disposal of subsidiaries
Losing controlling rights while dispose subsidiary on one-time
□Yes√No
Dispose subsidiary step by step through multi-dealings and losing controlling rights in the Period
□Yes√No
5. Changes of combination scope
Other reasons contributed the changes for combination scope (e.g. new subsidiary established, liquidate subsidiary etc.):
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main operation|||Share-holding ratio|||
|Subsidiary||Registered place|Business nature|||Acquired way|
||place|||Directly|Indirectly||
|Shandong|||||||
|Zhonglu Fishery|Qingdao|Qingdao|Refrigerated||||
|||||100.00%||Investment|
|Shipping Co.,|Shandong|Shandong|transport||||
|Ltd.|||||||
|Shandong|||||||
||Yantai Shandong|Yantai Shandong|Food processing|100.00%||Investment|
|Zhonglu Oceanic|||||||

|||||||
|-|-|-|-|-|-|
|(Yantai) Food||||||
|Co., Ltd.||||||
|Shandong||||||
|Zhonglu Haiyan|Qingdao|Qingdao||||
||||Pelagic fishing|59.05%|Investment|
|Oceanic Fishery|Shandong|Shandong||||
|Co., Ltd.||||||
|HABITAT||||||
|INTERNATION|||Refrigerated|||
||Panama|Panama||100.00%|Investment|
|AL|||transport|||
|CORPORATION||||||
|YAW ADDO||||||
|FISHERIES||||||
||Garner|Garner|Pelagic fishing||Operating lease|
|COMPANY||||||
|LIMITED||||||

Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other explanation:
(2) Important non-wholly-owned subsidiary
In RMB
||||||
|-|-|-|-|-|
||||Dividend announced to||
||Share-holding ratio of|Gains/losses attributable||Ending equity of|
|Subsidiary|||distribute for minority in||
||minority|to minority in the Period||minority|
||||the Period||
|Shandong ZhongluHaiyan Oceanic FisheryCo., Ltd.|||||
||40.95%|-1,473,608.49||126,326,229.75|

Explanation on share-holding ratio of minority different from ratio of voting right:
Other explanation:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Opening balance||||||
|Subsidia||Non-currentassets|||Non-|||Non-||Currentliability|Non-||
||Current||Total|Current||Total|Current||Total|||Total|
|ry|||||current|||current|||current||
||assets||assets|liability||liability|assets||assets|||liability|
||||||liability|||assets|||liability||
|Shandon|177,301|, 221,758,|399,060,|85,570,8|676,296.|86,247,1|137,172,|226,220,|363,393,|174,281,|676,296.|174,957,|

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|gZhongluHaiyanOceanicFisheryCo., Ltd.|266.90|913.03|179.93|98.63|64|95.27|698.60|585.87|284.47|509.38|64|806.02|

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current Period||||Last Period||||
|||||Cash flow||||Cash flow|
||||Total||||Total||
|Subsidiary|Operation|||from|Operation|||from|
|||Net profit|comprehensi|||Net profit|comprehensi||
||Income|||operation|Income|||operation|
||||ve income||||ve income||
|||||activity||||activity|
|ShandongZhongluHaiyanOceanicFishery Co.,Ltd.|||||||||
||73,754,521.8||||46,126,136.8|||34,584,084.0|
|||-3,598,555.54|-3,622,493.79|-2,244,328.09||7,776,226.98|7,850,678.66||
||2||||7|||5|

Other explanation:
(4) Use of the corporate funds and major limitation of debt liquidation of the group
(5) Financial supporting or other supports offer to the structured body, which included in consolidation statement scope
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact onminority’s interest andowners’ equity attributable to parent company
In RMB
 Other explanation
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
|||||||
|-|-|-|-|-|-|
|Name|Main operation|Registered place|Business nature|Share-holding ratio|Accounting|

|||||
|-|-|-|-|
|place|||treatment oninvestment forjoint venture andcooperativeenterprise|
||Directly|Indirectly||

 Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with20% below but with major influence, or without major influence but with over20%(20% included) voting rights hold:
(2) Main financial information of the important joint venture
In RMB
|||
|-|-|
|Closing balance /Current Period|Opening balance /Last Period|

 Other explanation
(3) Main financial information of the important cooperative enterprise
In RMB
|||
|-|-|
|Closing balance /Current Period|Opening balance /Last Period|

 Other explanation
(4) Summary of the financial information for those minor joint venture and affiliates
In RMB
||||
|-|-|-|
||Closing balance /Current Period|Opening balance /Last Period|
|Joint venture:|--|--|
|Total of the items counted by share-holding|||
||--|--|
|ratio|||
|Cooperative enterprise:|--|--|
|Total of the items counted by share-holding|||
||--|--|
|ratio|||

Other explanation
(5) Major limitation of the capital transfer to the Company from joint venture or affiliates
(6) Excess deficit arising from joint venture or affiliates
In RMB
|||||
|-|-|-|-|
|||Loss un-confirmed in the Period||
||Accumulative loss un-||Accumulative loss confirmed at|
|Joint venture or affiliates||(or net profit shared in the||
||confirmed previous||period-end|
|||Period)||

Other explanation
(7) Un-confirmed commitment with joint venture investment concerned
(8) Contingency with investment of joint venture investment concerned
4. Major co-management
|||||||
|-|-|-|-|-|-|
|||||Share-holding ratio /shares enjoyed||
|Name|Main operation place|Registered place|Business nature|||
|||||Directly|Indirectly|

 Explanation on difference of the voting rights over share-holding or share enjoyed in co-management:
As for the independent entity, basis of co-management classification:
Other explanation
5. Equity in structured entities not included in the consolidated financial statements
Note of structured entities not included in the consolidated financial statements:
6. Other
X. Risks related to financial instruments
The financial assets of the Company include accounts receivable and other receivables. The financial liabilities of the Company include accounts payable, other payables and short-term loans. For details of each financial instrument, please refer to the relevant items in Note 5. The Company is faced with the risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk. The board of directors is responsible for establishing and supervising the risk management structure of the Company and developing and monitoring the Company's risk management policies.
Risk management objectives and policies: the Company's goal of risk management is to strike a proper balance between risks and profits, minimize the negative impacts of the risks on the Company's operating results and maximize the benefits of shareholders and other equity investors.
1. Credit risk
If the customer or the other party involving in the financial instruments cannot fulfill the obligations under the contract and cause financial losses to the Company, that is credit risk. Credit risk is mainly from the customer receivables. The book value of account receivables and notes receivable and other receivables is the maximum credit risk of the Company for financial assets.
2. Liquidity risk
Liquidity risk is the risk of the shortage of funds when the Company is fulfilling its obligations related to financial liabilities. In the case of normal and tense funds, the Company needs to ensure that there is sufficient liquidity to meet its due debts and negotiate with financial institutions for financing so as to maintain a certain level of reserve credit line to reduce the liquidity risk.
3. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk that the fair value of financial instruments or the future cash flows fluctuate due to changes in
foreign exchange rates. The foreign exchange risk faced by the Company mainly comes from the financial assets valued in US dollars, and the amount of foreign currency financial assets converted into RMB is listed as described in VII. 79 foreign currency monetary items.
(2) Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows fluctuate due to changes in market interest rates. The interest rate risk faced by the Company mainly comes from the long-term bank loans, theCompany’s loans are floating interest rate, and there is risk of RMB benchmark interest rate change.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
||||||
|-|-|-|-|-|
||Ending fair value||||
|Item|||||
||First-order|Second-order|Third-order|Total|
|I. Sustaining measured by|||||
||--|--|--|--|
|fair value|||||
|II. Non-persistent measure|--|--|--|--|

2. Basis for determining the market price of the sustained and non-sustained first-level fair value measurement projects
3. The qualitative and quantitative information of the valuation techniques and important parameters adopted for the sustained and non-sustained second-level fair value measurement projects
4. The qualitative and quantitative information of the valuation techniques and important parameters adopted for the sustained and non-sustained third-level fair value measurement projects
5. The adjustment information about book value between the beginning and the end of the period and the unobservable parameter sensitivity analysis of the sustained third-level fair value measurement projects 6. The sustained third-level fair value measurement projects that conversion has occurred among various levels in the current period, the reasons for change and the policy determining the conversion point
7. Valuation techniques change occurred during the current period and the reasons for change
8. The fair value situations of the financial assets and financial liabilities not measured by the fair value 9. Other
XII. Related party and related transactions
1. Parent company of the enterprise
|||||||
|-|-|-|-|-|-|
|||||Share-holding ratio||
||||||Voting right ratio on|
|Parent company|Registration place|Business nature|Registered capital|on the enterprise for||
||||||the enterprise|
|||||parent company||
|Shandong State-owned AssetsInvestment HoldingCompany Limited|Jinan Shandong|Investment andmanagement,management andoperation of assets,managed operations,investment advisory|RMB 4,500,000,000|||
|||||33.07%|33.07%|

Explanation on parent company of the enterprise
Ultimate controller of the Company is Shandong State-owned Assets Investment Holdings Co., Ltd.
Other explanation:
2. Subsidiary of the Enterprise
Found more in Note IX.” Equity in subsidiary”
3. Cooperative enterprise and joint venture
Found more in Note.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous period
|||
|-|-|
|Name|Relationship|

Other explanation
4. Other related party
|||
|-|-|
|Other related party|Relationship with the Enterprise|
|Shandong Luxin Investment Holding Company Limited|Shareholders with over 5% shares held|

Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
|||||||
|-|-|-|-|-|-|
|||||Whether over the||
|||Amount of this|Trading limit|||
|Related party|Content|||approved limited or|Amount of last period|
|||period|approved|||
|||||not||

Goods sold/labor service providing
In RMB
|||||
|-|-|-|-|
|Related party|Content|Amount of this period|Amount of last period|

 Explanation on goods purchasing, labor service providing and receiving
In RMB (2) Related trusteeship management/contracts and entrusted management/outsourcing
Statement of trusteeship management/contract:
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Trustee /ends||Managed|
||||||Managed||
|||||||earnings|
|Client/Contract-|Entrusting|Trustee/assts|||earnings /pricing||
||||Trustee /start|||confirmed in the|
|out party|party/Contractor|contract|||of the contract||
|||||||period / contract|
||||||earnings||
|||||||earnings|

Related managed/contract:
Entrusted management/outsourcing:
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Entrusted|
||||||Trustee fee /|earnings|
|Client/Contract-|Entrusting|Entrust /assets|||||
||||Entrust /start|Entrust /ends|pricing of the|confirmed in the|
|out party|party/Contractor|outsourcing|||||
||||||outsourcing|period /|
|||||||outsourcing costs|

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

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

Explanation on related lease
(4) Related guarantee
As the guarantor
In RMB
||||||
|-|-|-|-|-|
|Secured party|Amount guarantee|Start|End|Completed or not (Y/N)|

 As the secured party
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Amount guarantee|Start|End|Completed or not (Y/N)|
|Shandong State-ownedAssets InvestmentHolding CompanyLimited|||||
||100,000,000.00|2017-04-28|2018-02-28|Y|

Explanation on related guarantee
(5) Relatedparty’s fund loan
In RMB
||||||
|-|-|-|-|-|
|Related party|Fund loan|Start|End|Note|
|Borrowing|||||
|Lending|||||

(6) Relatedparty’s assets transfer and debt reorganization
In RMB
|||||
|-|-|-|-|
|Related party|Content|Current Period|Last Period|

(7) Remuneration of key manager
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|Total remuneration||1,078,527.06|

 (8) Other related transactions
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Item|Related party|||||
|||Book balance|Bad debt reserves|Book balance|Bad debt reserves|

 (2) Payable item
In RMB
|||||
|-|-|-|-|
|Item|Related party|Ending book balance|Opening book balance|

 7. Commitments of related party
8. Other
XIII. Share-based payment
1. Share-based payment
□ Applicable√ Not applicable
2. Share-based payment settled by equity
□ Applicable√ Not applicable
3. Share-based payment settled by cash
□ Applicable√ Not applicable
4. Amendment and termination of the share-based payment
5. Other
XIV. Commitment or contingency
1. Important commitment
Important commitment on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) If the Company has no contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclosed
3. Other
XV. Event occurring after balance sheet date
1. Important non-adjusting events
In RMB
|||||
|-|-|-|-|
|||Impact on financial status and|Reasons of unable to estimated|
|Item|Content|||
|||operation results|the impact|

2. Profit distribution
In RMB
3. Sales return
4. Other explanation on events after balance sheet date
XVI. Other important event
1. Error correction for previous period
(1) Retrospective restatement
In RMB
|||||
|-|-|-|-|
|||Item with impact in statement||
|Correction content|Treatment procedure||Cumulative impact|
|||in every comparative period||

(2) Prospective application
||||
|-|-|-|
|Correction content|Approval procedure|Cause of prospective application adoption|

 2. Debt reorganization
3. Assets replacement
(1) Exchange of non-monetary assets
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Profit of|
|||||||discontinuing|
|||||Income tax||operation|
|Item|Revenue|Expenses|Total profit||Net profit||
|||||expenses||attributable to|
|||||||owners of parent|
|||||||company|

 Other explanation
6. Segment information
(1) Determination basis and accounting policy for segment
(2) Financial information of the segment
In RMB
||||
|-|-|-|
|Item|Offset between segment|Total|

(3) If the Company has no segment reporting, or unable to disclosed the total assets and liabilities of the segment, explain reasons
(4) Other explanation
7. Other important transactions and events shows impact on investor decision-making
8. Other
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category of account receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt reserves|||Book balance||Bad debt reserves|||
|Category|||||Book||||||
|||||Accrual|||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
|||||ratio|||||ratio||
|Account receivable|||||||||||
|with bad debt|19,618,0||5,937,50||13,680,54|14,421,||5,937,507||8,484,060.2|
|||100.00%||30.27%|||100.00%||41.17%||
|provision accrual by|51.48||7.66||3.82|567.93||.66||7|
|portfolio|||||||||||
||19,618,0||5,937,50||13,680,543.82|14,421,||5,937,507||8,484,060.27|
|Total||100.00%||30.27%|||100.00%||41.17%||
||51.48||7.66|||567.93||.66|||

 Account receivable with major single amount and withdrawal bad debt provision single at period-end:
□ Applicable√ Not applicable
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable□ Not applicable
In RMB
|||
|-|-|
|A/C age|Closing balance|

|||||
|-|-|-|-|
||Account receivable|Bad debt reserves|Accrual ratio|
|Sub-item of within one year||||
|Within 6 months|13,922,433.47|248,275.15|5.00%|
|6-12 months|6,600.00|214.50|10.00%|
|Subtotal of within one year|13,929,033.47|248,489.65||
|Over three years|5,689,018.01|5,689,018.01|100.00%|
|Total|19,618,051.48|5,937,507.66||

Explanation on portfolio basis:
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:
(2)Bad debt provision accrual, switch-back or taken back in reporting period
Amount RMB 0 accrual in the Period; amount 0 Yuan switch-back or taken back in the Period。
Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
||||
|-|-|-|
|Company|Amount switch back or taken back|Way|

(3) Account receivables actually written-off during the reporting period
In RMB
|||
|-|-|
|Items|Amount verified|

Including major account receivables written-off:
In RMB
|||||||
|-|-|-|-|-|-|
||||||Occurred due to|
|Company|Nature|Amount verified|Reasons|Verified procedures|related transaction|
||||||(Y/N)|

 Explanation on account receivable written-off :
(4)Top five receivables collected by arrears party at ending balance
In RMB
|||||
|-|-|-|-|
|Company|Ending balance|||
|||Ratio in total receivable|Balance of bad debt provision|
|Shandong Zhonglu Oceanic (Yantai) Food Co.,Ltd.|7,239,765.00|36.90%||
|TAI UNION ENTERPRISE CO.,LTD|6,682,668.47|34.06%|248,275.15|

|||||
|-|-|-|-|
|PACIFIC PANDA,INC|3,600,962.12|18.36%|3,600,962.12|
|Qingdao Haifeng Gorup Limited|430,625.10|2.20%|430,625.10|
|Han Xue|293,209.20|1.49%|293,209.20|
|Total|18,247,229.89|93.01%|4,573,071.57|

 (5) Account receivables derecognized due to financial assets transfer
(6) Transfer the account receivable and assets& liabilities arising from further involvement
Other explanation:
2. Other accounts receivable
(1) Category of other account receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt reserves|||Book balance||Bad debt reserves|||
|Category|||||Book||||||
|||||Accrualratio|||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
||||||||||ratio||
|Other account|75,824,890.78|||4.84%|||||||
|receivable with bad|||3,673,65||72,151,23|68,363,||3,673,656||64,689,774.|
|||100.00%|||||100.00%||5.37%||
|debt provision|||6.91||3.87|431.90||.91||99|
|accrual by portfolio|||||||||||
||75,824,890.78||3,673,65|4.84%|72,151,233.87|68,363,||3,673,656||64,689,774.99|
|Total||100.00%|||||100.00%||5.37%||
||||6.91|||431.90||.91|||

 Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
□ Applicable√ Not applicable
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|A/C age||||
||Other receivable|Bad debt reserves|Accrual ratio|
|Sub-item of within one year||||
|Within 6 months|19,046,085.57|139,823.36|5.00%|
|6-12 months|71,766.00|15.00|10.00%|
|Subtotal of within one year|19,117,851.57|139,838.36||
|1-2 years|21,124,765.99|259,746.18|30.00%|

|||||
|-|-|-|-|
|Over three years|35,582,273.22|3,274,072.37|100.00%|
|Total|75,824,890.78|3,673,656.91||

Explanation on portfolio basis:
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
(2) Bad debt provision accrual, switch-back or taken back in reporting period
Amount RMB 0 accrual in the Period; amount 0 Yuan switch-back or taken back in the Period
Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
||||
|-|-|-|
|Company|Amount switch-back or taken back|Way|

(3) Other receivables actually written-off during the reporting period
In RMB
|||
|-|-|
|Items|Amount verified|

Including major other account receivables written-off
In RMB
|||||||
|-|-|-|-|-|-|
||||||Occurred due to|
||Nature of other|||||
|Company||Amount verified|Reasons|Verified procedures|related transaction|
||receivables|||||
||||||(Y/N)|

 Explanation on write-off of other receivables:
(4) Other receivables by nature
In RMB
||||
|-|-|-|
|Nature|Ending book balance|Opening book balance|
|Intercourse funds in the Company|75,434,742.96|63,318,089.06|
|Reserve fund and others|390,147.82|5,045,342.84|
|Total|75,824,890.78|68,363,431.90|

 (5) Top 5 other receivables collected by arrears party at ending balance
In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion in total||
||||||Ending balance of|
|Company|Nature|Ending balance|Account age|other receivables at||
||||||bad debt provision|
|||||year-end||

||||||
|-|-|-|-|-|
|LAIF Company inGhana|Intercourse funds||Within 1 year, 1-2years, 2-3 years||
|||21,613,238.86||28.50%|
|Shandong ZhongluHaiyan OceanicFishery Co., Ltd.|Intercourse funds||Over 3 years||
|||20,720,825.26||27.33%|
|YAW ADDOCompany|Intercourse funds||Over 3 years||
|||11,446,927.59||15.10%|
|ZHONG GHA FOODCOMPAY LIMITED|Intercourse funds||Within 1 year||
|||8,069,246.53||10.64%|
|AFRICA STARFISHERISLIMITED|Intercourse funds||Within 1 year||
|||7,215,697.10||9.52%|
|Total|--|69,065,935.34|--|91.09%|

(6) Account receivable involved government subsidies
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Company|Name|Ending balance|Ending account age||
|||||estimated to received|

 (7) Other account receivables derecognized due to financial assets transfer
(8) Transfer the other account receivable and assets& liabilities arising from further involvement
Other explanation:
3. Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment for|||||||
||232,189,455.23||232,189,455.23|204,189,455.23||204,189,455.23|
|subsidiary|||||||
|Total|232,189,455.23||232,189,455.23|204,189,455.23||204,189,455.23|

 (1) Investment for subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase duringthe period|Decrease during|Closing balance|Impairment|Ending balance of|
|The invested entity|Opening balance||||||
||||this period||accrual|impairment|

||||||
|-|-|-|-|-|
|||||provision|
|HABITATINTERNATIONAL CORP.|||||
||12,476,145.60||12,476,145.60||
|Shandong ZhongluFishery ShippingCo., Ltd.|||||
||22,869,513.38||22,869,513.38||
|Shandong ZhongluOceanic (Yantai)Food Co., Ltd.|||||
||55,448,185.24||55,448,185.24||
|Shandong ZhongluHaiyan OceanicFishery Co., Ltd.|||||
||113,395,611.01|28,000,000.00|141,395,611.01||
|Total|204,189,455.23|28,000,000.00|232,189,455.23||

(2) Investment for associates and joint venture
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||+,-||||||||||
||||||||||||Ending|
||||||Other||Cash|||||
|||||Investme|||||||balance|
|||Additiona|||comprehe||dividend|||||
||Opening|||nt gains||Other||||Closing|of|
|Company||l|Capital||nsive||or profit|Impairme||||
||balance|||recognize||equity|||Other|balance|impairme|
|||investmen|reduction||income||announce|nt accrual||||
|||||d under||change|||||nt|
|||t|||adjustmen||d to|||||
|||||equity|||||||provision|
||||||t||issued|||||
|I. Joint venture||||||||||||
|II. Associated enterprise||||||||||||

(3) Other explanation
4. Operating income and cost
In RMB
||||||
|-|-|-|-|-|
||Current Period||Last Period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|77,834,059.12|60,182,495.95|57,174,319.09|43,119,825.36|
|Other business|2,054,655.24|768,677.02|2,364,952.79|718,241.91|
|Total|79,888,714.36|60,951,172.97|59,539,271.88|43,838,067.27|

Other explanation:
5. Investment gains
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|

6. Other
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-|||
||-18,990.79||
|current asset|||
|Governmental subsidy reckoned into current|||
|gains/losses (not including the subsidy|||
|enjoyed in quota or ration according to|433,292.74||
|national standards, which are closely relevant|||
|to enterprise’s business)|||
|Other non-operating income and expenditure|||
||-427,108.38||
|except for the aforementioned items|||
|Total|-12,806.43|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
2. REO and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
|Profits during report period|Weighted average ROE|||
|||Basic EPS (RMB/Share)|Diluted EPS (RMB/Share)|
|Net profits belong to common stock||0.08|0.08|
||3.14%|||
|stockholders of the Company||||
|Net profits belong to common stock||||
|stockholders of the Company after||||
||3.15%|0.08|0.08|
|deducting nonrecurring gains and||||
|losses||||

3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
4. Other
Section XI. Documents available for reference
(I) The financial statement of the Company with signature and seal from the person in charge of the Company, person in charge of the accounting works and person in charge of accounting;
(II) Original text of all documents of the Company as well as manuscript of the announcement that disclosed on website appointed by CSRC.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
President: Lu Lianxing
30 August 2018