Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2017-06-30
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|15,177,305.48|24,015,287.71|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||5,139,578.00|2,220,000.00|
|Notes receivable|||
||10,621,799.74|12,371,386.82|
|Accounts receivable|||
|Accounts paid in advance|1,496,894.88|1,867,424.89|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|593,588.25|658,754.09|
|Purchase restituted finance asset|||

||||
|-|-|-|
|Inventories|6,085,173.94|3,118,440.26|
|Divided into assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|2,555,611.75|2,050,830.55|
|Total current assets|41,669,952.04|46,302,124.32|
|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|||
|Fixed assets|3,615,758.14|3,728,955.11|
|Construction in progress|||
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|2,635,500.00|3,012,000.00|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|||
|apportioned|||
|Deferred income tax asset|633,566.88|645,196.29|
|Other non-current asset|400,000.00|400,000.00|
|Total non-current asset|7,284,825.02|7,786,151.40|
|Total assets|48,954,777.06|54,088,275.72|
|Current liabilities:|||
|Short-term loans|||
|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|11,751,606.32|9,751,977.78|
|Accounts received in advance|2,031,423.43|4,321,059.83|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||
|Wage payable|641,747.85|770,985.97|
|Taxes payable|419,444.08|1,565,153.77|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|18,956,010.14|20,397,287.32|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|33,800,231.82|36,806,464.67|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|33,800,231.82|36,806,464.67|

||||
|-|-|-|
|Owner’s equity:|||
|Share capital|551,347,947.00|551,347,947.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|627,834,297.85|627,834,297.85|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus public reserve|32,673,227.01|32,673,227.01|
|Provision of general risk|||
|Retained profit|-1,199,178,166.72|-1,197,486,788.28|
|Total owner’s equity attributable to|12,677,305.14|14,368,683.58|
|parent company|||
|Minority interests|2,477,240.10|2,913,127.47|
|Total owner’s equity|15,154,545.24|17,281,811.05|
|Total liabilities and owner’s equity|48,954,777.06|54,088,275.72|

 Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||1,391,537.61|1,143,418.29|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|||
|Account paid in advance||16,000.00|
|Interest receivable|||
|Dividends receivable|||

||||
|-|-|-|
|Other receivables|7,035,631.74|9,364,086.29|
|Inventories|||
|Divided into assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|2,391,678.18|2,050,830.55|
|Total current assets|10,818,847.53|12,574,335.13|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|10,379.73|10,379.73|
|Investment property|||
|Fixed assets|3,410,303.75|3,528,684.59|
|Construction in progress|||
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|2,635,500.00|3,012,000.00|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|400,000.00|400,000.00|
|Total non-current assets|6,456,183.48|6,951,064.32|
|Total assets|17,275,031.01|19,525,399.45|
|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|7,440.00||

||||
|-|-|-|
|Accounts received in advance||1,086,507.70|
|Wage payable|112,724.95|112,700.06|
|Taxes payable|78,934.95|81,512.92|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|10,168,473.15|10,662,912.89|
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|10,367,573.05|11,943,633.57|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|10,367,573.05|11,943,633.57|
|Owners’ equity:|||
|Share capita|551,347,947.00|551,347,947.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|627,834,297.85|627,834,297.85|
|Less: Inventory shares|||
|Other comprehensive income|||

||||
|-|-|-|
|Reasonable reserve|||
|Surplus reserve|32,673,227.01|32,673,227.01|
|Retained profit|-1,204,948,013.90|-1,204,273,705.98|
|Total owner’s equity|6,907,457.96|7,581,765.88|
|Total liabilities and owner’s equity|17,275,031.01|19,525,399.45|

 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|48,929,676.27|65,774,013.33|
|Including: Operating income|48,929,676.27|65,774,013.33|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|51,337,023.25|65,399,767.36|
|Including: Operating cost|45,686,272.83|60,321,233.37|
|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|91,353.05|71,125.39|
|Sales expenses|2,468,701.87|3,228,182.36|
|Administration expenses|3,339,531.50|2,348,640.07|
|Financial expenses|-201,564.91|-544,525.55|
|Losses of devaluation of asset|-47,271.09|-24,888.28|
|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 “-”)|||
|Other income|||
|III. Operating profit (Loss is listed with|||
||-2,407,346.98|374,245.97|
|“-”)|||
|Add: Non-operating income|291,710.58|342,089.82|
|Including: Disposal gains of|||
|non-current asset|||
|Less: Non-operating expense||1,509.00|
|Including: Disposal loss of|||
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|-2,115,636.40|714,826.79|
|Less: Income tax expense|11,629.41|195,895.21|
|V. Net profit (Net loss is listed with “-”)|-2,127,265.81|518,931.58|
|Net profit attributable to owner’s of|||
||-1,691,378.44|448,356.29|
|parent company|||
|Minority shareholders’ gains and|||
||-435,887.37|70,575.29|
|losses|||
|VI. Net after-tax of other comprehensive|||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes 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|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|-2,127,265.81|518,931.58|
|Total comprehensive income|||
||-1,691,378.44|448,356.29|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||-435,887.37|70,575.29|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.0031|0.0008|
|(ii) Diluted earnings per share|-0.0031|0.0008|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
Legal Representative: Li Hai Person in charge of Accounting Works:Sun Longlong Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

||||
|-|-|-|
|I. Operating income|3,228,905.96|3,476,770.26|
|Less: Operating cost|1,994,075.80|2,092,043.56|
|Operating tax and extras||27,518.91|
|Sales expenses|||
|Administration expenses|2,165,755.45|1,314,903.41|
|Financial expenses|2,461.63|172.23|
|Losses of devaluation of asset|||
|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|||
|Other income|||
|II. Operating profit (Loss is listed|||
||-933,386.92|42,132.15|
|with “-”)|||
|Add: Non-operating income|259,079.00|337,615.00|
|Including: Disposal gains of|||
|non-current asset|||
|Less: Non-operating expense||1,509.00|
|Including: Disposal loss of|||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||-674,307.92|378,238.15|
|“-”)|||
|Less: Income tax expense||94,557.55|
|IV. Net profit (Net loss is listed with|||
||-674,307.92|283,680.60|
|“-”)|||
|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|-674,307.92|283,680.60|
|VII. Earnings per share:|||
|(i) Basic earnings per share|-0.0012|0.0005|
|(ii) Diluted earnings per share|-0.0012|0.0005|

 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|23,451,451.79|26,522,475.87|
|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|||
|Other cash received concerning|||
||2,324,298.02|3,684,052.35|
|operating activities|||
|Subtotal of cash inflow arising from|||
||25,775,749.81|30,206,528.22|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|23,835,363.39|25,154,241.71|
|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|3,517,233.68|3,469,307.38|
|Taxes paid|1,649,135.49|1,339,712.12|

||||
|-|-|-|
|Other cash paid concerning|||
||5,580,059.48|4,991,881.79|
|operating activities|||
|Subtotal of cash outflow arising from|||
||34,581,792.04|34,955,143.00|
|operating activities|||
|Net cash flows arising from operating|||
||-8,806,042.23|-4,748,614.78|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|activities|||
|Cash paid for purchasing fixed,|||
||31,940.00|2,959,824.00|
|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|||
||31,940.00|2,959,824.00|
|activities|||
|Net cash flows arising from investing|||
||-31,940.00|-2,959,824.00|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||

||||
|-|-|-|
|investment by subsidiaries|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
|activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit|||
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
|activities|||
|Net cash flows arising from financing|||
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||-8,837,982.23|-7,708,438.78|
|equivalents|||
|Add: Balance of cash and cash|||
||24,015,287.71|26,752,065.66|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||15,177,305.48|19,043,626.88|
|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|||
|services|||
|Write-back of tax received|||

||||
|-|-|-|
|Other cash received concerning|||
||4,981,778.23|7,109,161.66|
|operating activities|||
|Subtotal of cash inflow arising from|||
||4,981,778.23|7,109,161.66|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor||32,356.80|
|service|||
|Cash paid to/for staff and workers|1,439,294.18|1,005,191.83|
|Taxes paid|186,158.39|242,875.18|
|Other cash paid concerning|||
||3,108,206.34|2,949,997.90|
|operating activities|||
|Subtotal of cash outflow arising from|||
||4,733,658.91|4,230,421.71|
|operating activities|||
|Net cash flows arising from operating|||
||248,119.32|2,878,739.95|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|activities|||
|Cash paid for purchasing fixed,|||
|||2,959,824.00|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing||2,959,824.00|

||||
|-|-|-|
|activities|||
|Net cash flows arising from investing|||
|||-2,959,824.00|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
|activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit|||
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
|activities|||
|Net cash flows arising from financing|||
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||248,119.32|-81,084.05|
|equivalents|||
|Add: Balance of cash and cash|||
||1,143,418.29|1,199,934.09|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||1,391,537.61|1,118,850.04|
|equivalents at the period -end|||

7. Statement of Changes inOwners’ Equity (Consolidated)
This Period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||This Period|||||||||||||
||Owners’ equity attributable to parent company|||||||||||||
|||Other||||||||||||
|||equity instrument||||||||||||
|Item||||||||||||Minorit|Total|
|||||||Less:|Other|||Provisio||||
||Share||Perpet|||||Reason||||y|owners’|
||capital|Prefer|ual||Capitalreserve|Inventory|comprehensive|able|Surplusreserve|n ofgeneral|Retained profit|interests|equity|
|||red|capita|Other||shares|income|reserve||risk||||
||||l|||||||||||
|||stock||||||||||||
||||securi|||||||||||
||||ties|||||||||||
||551,34||||||||||-1,197,4|||
|I. Balance at the|||||627,834||||32,673,|||2,913,1|17,281,|
||7,947.||||||||||86,788.|||
|end of the last year|||||,297.85||||227.01|||27.47|811.05|
||00||||||||||28|||
|Add:||||||||||||||
|Changes of||||||||||||||
|accounting policy||||||||||||||
|Error||||||||||||||
|correction of the||||||||||||||
|last period||||||||||||||
|Enterprise||||||||||||||
|combine under||||||||||||||
|the same control||||||||||||||
|Other||||||||||||||
||551,34||||||||||-1,197,4|||
|II. Balance at the|||||627,834||||32,673,|||2,913,1|17,281,|
|beginning of this|7,947.||||||||||86,788.|||
||||||,297.85||||227.01|||27.47|811.05|
|year|00||||||||||28|||
|III. Increase/||||||||||||||
||||||||||||-1,691,3|-435,88|-2,127,2|
|Decrease in this||||||||||||||
|year (Decrease is|||||||||||78.44|7.37|65.81|
|listed with “-”)||||||||||||||
|(i) Total|||||||||||-1,691,3|-435,88|-2,127,2|
|comprehensive||||||||||||||
||||||||||||78.44|7.37|65.81|
|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|||||||
||551,34|||-1,199,1||15,154,545.24|
|IV. Balance at the||627,834|32,673,||2,477,2||
|end of the report|7,947.|||78,166.|||
|||,297.85|227.01||40.10||
|period|00|||72|||

Last Period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Last Period|||||||||||||
||Owners’ equity attributable to parent company|||||||||||||
|||||||||||||Minorit||
|Item||Other|||||||||||Total|
|||||||Less:|Other|||Provisio||y||
||Sharecapital|equity instrument||||||Reason|||||owners’|
||||||Capitalreserve|Inventory|comprehensive||Surplusreserve|n ofgeneral|Retained profit|interest||
|||||||||able|||||equity|
|||Preferred|Perpetual|Other||shares|income|reserve||risk||s||

||||||||||
|-|-|-|-|-|-|-|-|-|
|||stock|capita||||||
||||l||||||
||||securi||||||
||||ties||||||
||551,34|||||-1,200,0|||
|I. Balance at the||||627,834|32,673,||1,625,1|13,390,|
||7,947.|||||90,425.|||
|end of the last year||||,297.85|227.01||85.21|231.32|
||00|||||75|||
|Add:|||||||||
|Changes of|||||||||
|accounting policy|||||||||
|Error|||||||||
|correction of the|||||||||
|last period|||||||||
|Enterprise|||||||||
|combine under|||||||||
|the same control|||||||||
|Other|||||||||
||551,34|||||-1,200,0|||
|II. Balance at the||||627,834|32,673,||1,625,1|13,390,|
|beginning of this|7,947.|||||90,425.|||
|||||,297.85|227.01||85.21|231.32|
|year|00|||||75|||
|III. Increase/|||||||||
|||||||2,603,6|1,287,9|3,891,5|
|Decrease in this|||||||||
|year (Decrease is||||||37.47|42.26|79.73|
|listed with “-”)|||||||||
|(i) Total||||||2,603,6|1,287,9|3,891,5|
|comprehensive|||||||||
|||||||37.47|42.26|79.73|
|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|||||||
||551,34|||-1,197,4|||
|IV. Balance at the||627,834|32,673,||2,913,1|17,281,|
|end of the report|7,947.|||86,788.|||
|||,297.85|227.01||27.47|811.05|
|period|00|||28|||

8. Statement of Changes inOwners’ Equity (Parent Company)
This Period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||This 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|||||||||
|||||||||||-1,204,2||
||551,347,||||627,834,2||||32,673,22||7,581,765|
|I. Balance at the||||||||||||
|||||||||||73,705.||
|end of the last year|947.00||||97.85||||7.01||.88|
|||||||||||98||

|||||||
|-|-|-|-|-|-|
|Add: Changes||||||
|of accounting||||||
|policy||||||
|Error||||||
|correction of the||||||
|last period||||||
|Other||||||
|||||-1,204,2||
|II. Balance at the|551,347,|627,834,2|32,673,22||7,581,765|
|beginning of this||||73,705.||
||947.00|97.85|7.01||.88|
|year||||98||
|III. Increase/||||||
|||||-674,30|-674,307.|
|Decrease in this||||||
|year (Decrease is||||7.92|92|
|listed with “-”)||||||
|(i) Total||||-674,30|-674,307.|
|comprehensive||||||
|||||7.92|92|
|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||||||
|||||-1,204,9|6,907,457.96|
|IV. Balance at the|551,347,|627,834,2|32,673,22|||
|end of the report||||48,013.||
||947.00|97.85|7.01|||
|period||||90||

Last period
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|||||||||
|||||||||||-1,203,8||
||551,347,||||627,834,2||||32,673,22||7,983,327|
|I. Balance at the||||||||||||
|||||||||||72,144.||
|end of the last year|947.00||||97.85||||7.01||.03|
|||||||||||83||
|Add: Changes||||||||||||
|of accounting||||||||||||
|policy||||||||||||
|Error||||||||||||
|correction of the||||||||||||
|last period||||||||||||
|Other||||||||||||
|||||||||||-1,203,8||
|II. Balance at the|551,347,||||627,834,2||||32,673,22||7,983,327|
|beginning of this||||||||||72,144.||
||947.00||||97.85||||7.01||.03|
|year||||||||||83||
|III. Increase/||||||||||||
|||||||||||-401,56|-401,561.|
|Decrease in this||||||||||||
|year (Decrease is||||||||||1.15|15|
|listed with “-”)||||||||||||

||||
|-|-|-|
|(i) Total|-401,56|-401,561.|
|comprehensive|||
||1.15|15|
|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|||

|||||||
|-|-|-|-|-|-|
|||||-1,204,2||
|IV. Balance at the|551,347,|627,834,2|32,673,22||7,581,765|
|end of the report||||73,705.||
||947.00|97.85|7.01||.88|
|period||||98||

III. Company Profile
1. History and Reform
According to the Approval Document SFBF (1991) No. 888 issued by thePeople’s Government of Shenzhen, Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of thePeople’s Bank of China, the Company got listed on Shenzhen Stock Exchange. The Company reserves the business license for the enterprise legal person (QGYSZFZ No.101165)[Uniform social credit code:914403006188304524] and the registered capital of RMB551, 347,947.00.
2. Industry nature
The company's industry: machinery manufacturing industry
3. Business scope
The production and assembly of various bicycles and spare parts, components, parts, mechanical product, sport machinery, fine chemicals, carbon fiber composites material, household electrical appliance and affiliated components (products management by license excluded).
4. Major products and services provided
The Company is specialized in making the middle-top rank bicycles, the main brands are EMMELLE and various electrical bicycles.
5. Business change
During the reporting period, the company's main business has not changed.
6. Disclosure date approved
The financial statement approved for report has been deliberated by the second meeting of 10th BOD held 28 August 2017
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guocheng Energy Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On
12th,
Oct., 2012, Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guocheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since
25th,
Oct., 2012 according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King& Wood (Shenzhen) Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the Shenzhen IntermediatePeople’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen IntermediatePeople’s Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization. The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards
The financial statement prepared by the Company, based on follow compilation basis, is comply with the requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application
guide, commentate as well as other regulations (called by a joint name as Accounting Standards for Business Enterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cash flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the Disclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014 Revised) (hereinafter referred to as NO. 15 (2014 Revised) document)
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, that is falls to the range starting from 1 January to 31 December.
4. Recording currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same control
(1) Accounting treatment for business combinations under the same control and those not under the same control① The business combination under the same control
For a business merger that is under the same control and is achieved by the Company through one single transaction or multiple transactions, assets and liabilities obtained from that business combination shall be measured at their book value at the combination date as recorded by the party being absorbed in the consolidated financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for offset.
The asset or liability items of consolidated party are measured at their carrying value in the consolidated balance sheet as of the consolidation date. Consolidated Profit and Loss include all items of income, expenditures and profit from beginning till end of the period of the consolidated party(ies). Net profit made by the consolidated company should be listed exclusively in the consolidated Profit and Loss. Cash flows from beginning till end of the period of all consolidated parties are taken into the consolidated Cash Flow.
②The business combinations not involving enterprises under common control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiable
assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair value of net identifiable assets gained from the acquiree during business combination, the fair value and combined cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where the combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from the acquiree during business combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactions and by steps, the Company shall make accounting treatment as follows:
A. Adjust the initial investment cost of long-term equity investments. As for stock equities held before the acquisition date accounted according to the equity method, re-measurement is carried out according to the fair value of the equity on the acquisition date. The balance between the fair value and the book value is included in the current investment income. If theacquiree’s stock equities held before the acquisition date involves changes of other comprehensive incomes and other owner's equities under accounting with the equity method, the balance between the fair value and the book value is included in the current investment income on the acquisition date, excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets of the defined benefit plan.
B. Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary shared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if the former is less than the latter, the balance is included in the current profits and losses.
(2)Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in stages
①In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of the following may indicate that the parent should account for the multiple arrangements as a single transaction: A. Arrangements are entered into at the same time or in contemplation of each other;
B. Arrangements work together to achieve an overall commercial effect;
C. The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
D. One arrangement considered on its own is not economically justified, but it is economically justified when considered together with other arrangements.
②Accounting treatment for each of the multiple transactions forming part of a bundled transactions which eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control the subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated
financial statements, the difference between the consideration received and the corresponding percentage of thesubsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at the date when control is lost. The difference between the total amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based on the previous shareholding proportion, shall be recognized as investment income for the current period when control is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control is lost
③Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of the consideration received and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at the date when control is lost. The difference between the total amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based on the previous shareholding percentage, shall be recognized as investment income for the current period when control is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent company and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent company.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more participants carry out joint control on implementation of the arrangement. Any participant cannot control the arrangement independently. Any participant for joint control can stop other participants or participant combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related activities of the arrangement must be determined only when obtaining the unanimous consent of the parties sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises: 1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to provisions of Accounting Standards for EnterprisesNo.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash equivalents refer to the short-term (generally due within three months since the date of purchase) highly liquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.
9. Foreign currency transaction and financial statement conversion
(1) Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according
to the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must be based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different exchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loan related to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits and losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value and the difference shall be charged to current profits and losses or other comprehensive income.
(2) Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; theowner’s equity items, except for the items of “undistributed profit”, shall be converted at the spot exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted at the spot exchange rate on the transaction date. The translation difference of foreign financial statements conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
Financial instruments comprise of financial assets, financial liabilities and equity instruments.
(1) Classification of financial instruments
Financial assets and financial liabilities are classified as follows by the management based on the purpose of holding or assuming these assets or liabilities: financial assets or financial liabilities at fair value through profit or loss, including financial assets or financial liabilities held for trading and those directly designated as at fair value through profit or loss; held-to-maturity investments; receivables; available-for-sale financial assets and other financial liabilities, etc.
(2) Recognition and measurement of financial instruments
①Financial assets and liabilities at fair value through profit and loss
The fair value (after deduction of cash dividend to be distributed and bonds interest to be received) of the assets on the acquisition shall be adopted as initial recognized value, and related transaction expenses shall be accounted into current profits and losses.
The interests and cash dividend received shall be recognized as investment gain during the period, and the difference of fair value between initial and spot dates shall be accounted into current profits and losses at the end of period.
On the disposal of the assets, the difference between the obtained price and the book value of investment shall be recognized as investment gain, and the accumulated fair value profits and losses shall be accordingly adjusted.
②Held to maturity investments
The fair value (after deduction of bond interests whose period has matured but not charged yet) plus the related transactions fees represents the initial recognition value.
During the holding period, the interest income shall be calculated as and included into investment gain in accordance with the amortized costs and the actual interest rate. The actual interest rate is determined at the time of acquisition, and shall remain unchanged during the expected renewal period or any shorter period as applicable.
Upon disposal, the difference between the cost of acquisition and the book value of the investment shall be accounted into investment gain.
③Receivable accounts
The contract price charged to the buyers shall be recognized as initial value for those receivable accounts which mainly comprise the receivablecreditor’s right caused by the sale of goods and the providing of labor services to external customers by the Company, and receivables in other companies excluding debt instruments priced in active markets, includes but is not limited to receivable accounts and other receivables. If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivable shall be accounted into current profits and losses on its recovery or disposal.
④Financial assets available for sale
The fair value (lower than cash dividend to be distributed andbonds’ interest to be received) and relevant transaction expenses of the assets on the acquisition shall be adopted as initial recognized value.
The interests and cash dividend received shall be recognized as investment income during the holding period, and the difference of fair value between initial and spot dates shall be accounted into capital reserve (other capital reserve).
Upon disposal, the difference between fair value and initial value shall be recognized as investment profits and losses, and the accumulated changes in fair value from the disposal shall be at the same time transferred from theshareholders’ equity to investment profits and losses.
⑤Other financial liabilities
The sum of the fair value and relevant transaction expenses is recognized as the initial recognition amount. The amortized cost is used for subsequent measurement.
⑥Disposal of held-to-maturity investment or reclassification as financial assets available for sale:
Where the Company sells its outstanding held-to-maturity investment within the current accounting year or
re-classifies it as the amount of available-for-sale financial asset, and the amount is considerably large as compared with the amount before such investment is sold or re-classified, the surplus of such investment shall be re-classified as an available-for-sale financial asset. However, the following circumstances shall be excluded: A. The date of sale or re-classification is quite near to the maturity date or the repo date of the said investment (e.g., within 3 months prior to maturity) that any change of the market interest rate will produce little impact upon the fair value of the said investment.
B. Enterprise has received almost all the initial principal of the investment according to the provisions on repayment of the contract.
C. The sale or re-classification is caused by any independent event that the enterprise cannot control, is predicted not to occur again and is hard to be reasonably predicted.
(3) Recognition and measurement of transfer of financial assets
With respect to transfer of financial assets, if an enterprise transfers substantially all the risks and rewards of ownership of a financial asset to the transferee, the enterprise shall derecognize the financial assets. If an enterprise retains substantially all the risks and rewards of ownership of a financial asset, the enterprise shall not derecognize the financial asset.
When making judgment on whether a transfer of financial assets satisfy the above conditions for derecognition of financial assets, the focus shall be put on substance, instead of the form. The Company shall divide transfer of financial assets into transfer in full or in part. For a transfer of a financial asset in its entirety that satisfies the derecognizing criteria, the difference between the following two amounts shall be recognized in profit or loss for the current period:
①the book value of the financial asset transferred;
②The sum of the consideration received from the transfer and any cumulative gain or loss that had been recognized directly inowner’s equity (applicable to transfer of available-for-sale financial assets).
If a part of the transferred financial asset qualifies for derecognizing, the book value of the transferred financial asset in its entirety shall be allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts. The difference between the following two amounts shall be included in profit or loss for the current period:
①the book value allocated to the part derecognized;
②the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to it that had been recognized directly in equity (applicable to transfer of available-for-sale financial assets).
If a transfer of financial assets do not satisfy the derecognition conditions, the company shall continue to recognize the financial assets, and the consideration received shall be included as financial liabilities.
(4) Conditions for derecognizing financial liabilities
If the current obligations of financial liabilities has been lifted in whole or in part, then the Company shall derecognize the financial liabilities in whole or in part thereof; if the Company signs an agreement with creditors in order to take on new ways to replace the existing financial liabilities, and the new liabilities and the existing financial terms are substantially different, the Company shall terminate recognizing the existing financial liabilities, and begin to recognize the new financial liabilities at the same time.
If the terms of the contract involving the existing financial liabilities have been made with substantive changes in whole or in part, the Company shall terminate recognizing the existing financial liabilities in whole or in part, and at the same time, adopt the modified version of financial liabilities as a new one. On derecognizing the financial liabilities in whole or in part, the difference between the book value of these financial liabilities and the payment (including the roll-out of non-cash assets or new financial liabilities to be assumed) shall be accounted into current profits and losses.
If buying back part of the financial liabilities, on the date of repurchase and in accordance with the comparative fair value of the part to be continuously recognized and to be derecognized, the Company shall allocate the entire financial liabilities. The difference between the part assigned to the derecognized book value and the payment (including the roll-out of non-cash assets or new financial liabilities to be assumed) shall be included into profits and losses of the current period.
(5)Determination of fair value of financial assets and liabilities
For financial assets and financial liabilities of the Company measured at fair value for which an active market exists, their fair values are determined based on the prices quoted on the actively traded market; for financial assets and financial liabilities for which no active market exists, their fair values are determined using valuation techniques (including by reference to the price adopted by willing parties in their recent transactions or by reference to the prevailing fair value, discount of cash flow method and option pricing model of other financial instruments which are substantially the same); for financial assets initially obtained or derived or financial liabilities assumed, fair value is determined based on market transaction prices.
(6) Provision for impairment reserve of financial assets (excluding accounts receivable)
On balance sheet date, the carrying amounts of financial assets (except for those measured at fair value through profit or loss of the period) are assessed for impairment. Provision for impairment is made when there exists objective evidence that impairment of a financial asset has occurred.
For financial assets, objective evidence of impairment includes, but not limited to:
①significant financial difficulty of the issuer or debtor;
②breach of contract, such as delinquency or default in interest and principal payments made by the debtor;
③the creditor, for economic or legal reasons, granting concession to the debtor in financial difficulty;
④it becoming probable that the debtor will enter bankruptcy or financial reorganization;
⑤the disappearance of an active market for that financial asset because of financial difficulties of the issuer;⑥upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes adverse change in the payment status of debtor of the group of assets, or increased unemployment rate in the country or region where the debtor is located, decreased price of collateral in the region where it belongs, recession in the industry, etc.;
⑦significant adverse changes in the technological, market, economic or legal environment in which the issuer of equity instrument operates, indicating that the cost of the equity instrument investment may not be recovered by the investor;
⑧a significant or prolonged decline in the fair value of the investment in equity instrument;
Specific method for impairment of financial assets:
①Impairment of available-for-sale financial asset
As for available-for-sale financial assets, in case that there is any objective evidence indicating available-for-sale equity instrument investment is impaired (including fair value of equity instrument investment occurs significant or non-temporary decline, impairment shall be recognized.
Where an available-for-sale financial asset is impaired, even if the recognition of the financial asset has not been terminated, the accumulative losses arising from the decrease of the fair value of theowner’s equity which was directly included shall be transferred out and recorded into the profits and losses of the current period. The accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the sold financial asset after deducting the principals as taken back, the current fair value and the impairment-related losses as was recorded into the profits and losses of the current period.
As for the available-for-sale debt instruments whose impairment-related losses have been recognized, if, within the accounting period thereafter, the fair value has risen and are objectively related to the subsequent events that occur after the originally impairment-related losses were recognized, the originally recognized impairment-related losses shall be reversed and be recorded into the profits and losses of the current period. Impairment loss occurred to available-for-sale equity instrument investment shall be reverted through equity when the value of the equity instrument rises up. However, impairment loss in respect of equity instrument investment for which there is no quoted price in an active market and for which fair value could not be measured reliably, or impairment loss in relation to a derivative financial asset linked with the equity instrument for which the settlement shall be subject to
delivery of the equity instrument, shall not be reverted.
②Provision for impairment of held-to-maturity investments:
If there is objective evidence that indicates impairment has occurred on a held-to-maturity investment, the difference between its carrying amount and the present value of its estimated future cash flow is recognized as impairment loss. If there is subsequent evidence to prove that its value has recovered, the originally recognized impairment loss may be reversed and recognized in profit or loss for the period, however the carrying amount so reversed may not exceed the amortization cost of the financial asset at the date of reversal had there been no provision for impairment.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
|||
|-|-|
|Account with single significant amount|Over RMB 5 million|
||Conducted impairment testing separately, balance between the|
||present value of future cash flow and its carrying value, bad|
|Withdrawal method for bad debt provision of account||
||debt provision withdrawal and reckoned into current|
|receivable with single significant amount||
||gains/losses. For those without impairment being found after|
||test, collected into relevant combination for accrual.|

(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk characteristics portfolio
|||
|-|-|
|Combination|Bad debt provision accrual|
|Aging of accounts group|Age analysis method|

Group with bad debt provision accrual by aging:
√ Applicable□ Not applicable
||||
|-|-|-|
|Age|Accrual ratio|Accrual ratio for other receivable|
||0.30%|0.30%|
|Within one year (one year included)|||
|1－2 years|0.30%|0.30%|
|2－3 years|0.30%|0.30%|
|Over 3 years|100.00%|100.00%|
|3－4 years|100.00%|100.00%|
|4－5 years|100.00%|100.00%|
|Over 5 years|100.00%|100.00%|

 In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable√ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
|||
|-|-|
||If any objective evidence shows that it may has impaired, such|
||as the debtor revoke, bankruptcy or death, and after liquidate|
|Reasons for provision of bad debt reserve||
||with bankrupt’s estates or heritage, the money still|
||un-collectable, and in sufficient of cash flow|
||As for the receivable with objective evidence shows that it|
|Provision method of bad debt reserve|might be impaired, an independent impairment test may be|
||carried out for impairment losses recognized|

12. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods on hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs and other costs. The prices of inventories are calculated using weighted average method when they are delivered. (3) Inventory system
Perpetual inventory system is adopted.
(4) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value of stock in inventory (including finished products, inventory merchandize and materials for sale) that can be sold directly is determined using the estimated saleable price of such inventory deducted by the cost of sales and relevant taxation over the course of ordinary production and operation. The net realizable value of material in inventory that requires processing is determined using the estimated saleable price of the finished product deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary production and operation. The net realizable value of inventory held for performance of sales contract or labor service contract is determined based on the contractual price; in case the amount of inventory held exceeds the contractual amount, the net realizable value of the excess portion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,
for inventories with large quantity and low unit price, the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period. 13. Classified as assets held for sale
If a non-current asset can be promptly sold at its existing status only according to the practice terms in connection with disposal of this kind of assets, and the Company has already made resolution on disposal of the non-current asset and entered into irrevocable transfer agreement with the transferee, and this transfer will be completed within one year, then the non-current asset would be calculated as non-current asset held for sale which would be not applicable to depreciation or amortization since the date of classification as asset held for sale, and would be measured at the lower of its carrying value less disposal cost and fair value less disposal cost. Non-current asset held for sale consists of single item asset and disposal group. If a disposal group is a group of assets as defined by No.8 of Business Accounting Standards-Assets Impairment, and goodwill arising from business combination shall be allocated to the group of assets under this accounting principle, or the disposal group constitutes one operation of the group of assets, then the disposal group includes the goodwill arising from business combination.
For single non-current asset and asset in disposal group classified as assets held for sale, they shall be presented in balance sheet separately as current assets. For liabilities in disposal group relating to the transferred assets classified as assets held for sale, they shall be presented in balance sheet separately as current liabilities.
If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current asset held for sale, the Company will cease such recognition and measure the asset at the lower of (1)the carrying value of the asset or disposal group prior to being classified as held for sale, based on the amount adjusted with the depreciation, amortization or impairment which should have been recognized assuming it had not been classified as held for sale; (2)the recoverable amount on the date when the Company decides to cease disposal. 14. Long-term equity investments
(1) Determination of investment costs
①If it is formed by the business combination under the common control, and that the combining party takes cash payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation consideration, the shares of the book value of theowner’s equity obtained from the combined party on the date of combination in the ultimate controllingparty’s consolidated financial statements shall be recognized as its initial investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for long-term equity investment and the book value of paid consolidation consideration or the total face value of issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the initial investment cost of the investment shall be determined based on the share of the carrying value of theowners’ equity of the consolidated party as calculated according to the shareholding proportion on the consolidation date. Difference between initial investment cost and the carrying value of long-term equity
investment before combination and the sum of carrying value of newly paid consideration for additional shares acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the balance of capital reserve is insufficient, any excess is adjusted to retained earnings.
②As for long-term equity investment formed from business combination not under common control, the fair value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.③Except those ones formed by the business combination, for all items obtained by means of cash payment, actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2) Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-term investment is accounted for using the cost method in theCompany’s financial statements. The equity method is adopted when the Group has joint control, or exercises significant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except for the price actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is included in the consideration, the Company recognizes cash dividends or profits declared by the investee as current investment gains, and determine whether there is impairment on long term investment according to relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of the long-term equity investment. When the initial investment cost is lower than the share of fair value in the net identifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment of cost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its attributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and adjust carrying value of the investment. The Group recognizes its share of theinvestee’s net profits or losses after making appropriate adjustments to theinvestee’s net profits and losses based on the fair value of theinvestee’s identifiable assets at the acquisition date, using theGroup’s accounting policies and periods, and eliminating the portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributable to the investing entity according to its shareholding proportion (but impairment losses for assets arising from internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. TheGroup’s share of net losses of the investee is recognized to the extent the carrying amount of the investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that
the Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term equity investment for any changes inowners’ equity of the investee (other than net profits or losses) and includes the corresponding adjustments in theowners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control with other parties over those policies
(4) Disposal of long-term equity investment
①Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the difference between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit or loss.
②Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long term invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceeds should be recognized as profit or loss. The residual part should be treated as long term investment or other financial assets according to their carrying amount. After partial disposal, if the company is able to exert significant influence or common control over the investee, the investment should be measured according to cost method or equity method, in compliance with relevant accounting standards and regulations.
(5) Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint ventures is impaired, provision of impairment shall be made against the difference between the carrying amount and the recoverable amount of the investment.
15. Investment property
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment property refers to the real estate held with purpose of rent earning, capital appreciation or both of them.
Investment properties of the Company include:
(1) Land use right which has been rented out;
(2) Land use right which is held for transfer upon appreciation;
(3) Buildings which has been rented out.
Investment property is initially measured at the cost when acquired. The Company makes subsequent measurement on investment property under cost model on the balance sheet date. Depreciation method for constructions and buildings under the item of fixed assets are the same, and amortization method for land use right and land use right under the item of intangible assets are the same.
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in excess of 1 financial year.
Fixed assets may be recognized unless it simultaneously meets the conditions as follows:
①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
②The cost of the fixed assets can be measured reliably.
(2) Depreciation methods
||||||
|-|-|-|-|-|
|||||Yearly depreciation|
|Categories|Method|Years of depreciation|Scrap value rate||
|||||rate|
||Straight-line||||
|Housing buildings||20|10%|4.5%|
||depreciation||||
|Machines and|Straight-line||||
|||10|10%|9%|
|equipment|depreciation||||
||Straight-line||||
|Office equipment||5|10%|18%|
||depreciation||||
||Straight-line||||
|Electronic equipment||5|10%|18%|
||depreciation||||
|Transportation|Straight-line||||
|||5|10%|18%|
|equipment|depreciation||||
||Straight-line||||
|Other equipment||5|10%|18%|
||depreciation||||

The fixed assets accrued full provisions for diminution in value should no long accrue the depreciation of fixed assets. The fixed assets accrued provisions for diminution in value should deduct the accrued amounts of the provision for impairment of fixed assets, and recalculate and confirm the depreciation rate and depreciation amount according to the useful life.
(3) Reorganization basis, valuation and depreciation method for financial lease assets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of asset ownership to the lessee and titles to the assets may or may not eventually be transferred. For
fixed assets acquired under finance leases, the basis for provision of leased assets depreciation is the same as that
of self-owned fixed assets. When it can be reasonably determined that the ownership of a leased asset will be transferred at the end of the lease term, it is depreciated over the period of expected use; otherwise, the lease asset is depreciated over the shorter period of the lease term and the period of expected use.
17. Project under Construction
(1) Class of construction in progress
Construction in progress is measured case by case.
(2) Standards and timing of carrying forward construction in progress into fixed assets
The initial book values of the fixed assets are stated at total expenditures incurred before construction in progress reaching the working condition for their intended use. For construction in progress that has reached working conditions for its intended use but for which the completion of settlement has not been handled, it shall be transferred into fixed assets at the estimated value according to the project budget, construction price or actual cost, etc. from the date when it reaches the working conditions for its intended use. And the fixed assets shall be depreciated in accordance with theCompany’s policy on fixed asset depreciation. Adjustment shall be made to the originally and provisionally estimated value based on the actual cost after the completion of settlement is handled, but depreciation already provided will not be adjusted.
18. Borrowing expenses
(1) Principles of recognizing capitalization of borrowing expenses
The borrowing expenses of the Company directly attributable to the construction or production of an asset meeting capitalization conditions are capitalized and recognized in relevant asset costs; other borrowing expenses are recognized as expenses based on the amount incurred and recognized in profit or loss for the period.
An asset that meets the capitalization conditions refers to fixed assets, real estate investments and inventories that require a considerable amount of time for construction or production to reach the expected usable or saleable condition.
Borrowing expenses are capitalized when all of the following conditions are met:
①the asset expense has occurred, which includes expenses in the form of cash paid, nonmonetary asset transferred or interest-bearing obligations assumed for the construction or product of an asset that meets capitalization conditions;
②the borrowing expenses have occurred;
③the necessary construction or production activities for bringing the asset to the expected usable or saleable conditions have started.
Capitalization of borrowing expenses is suspended when any abnormal interruption continues for over three months during the construction or production of an asset that meets capitalization conditions.
When the construction or production of an asset meeting capitalization conditions has reached expected useful or saleable conditions, the capitalization of borrowing expenses is stopped.
When the a portion of the construction or production of an asset meeting capitalization conditions has completed and can be used individually, the capitalization of borrowing expenses of such portion of asset is stopped.
(2) Capitalization period of borrowing expenses
Capitalization period refers to the time starting from the borrowing expenses are capitalized to the time capitalization is stopped, except for the period which capitalization of borrowing expenses is suspended.
(3) Calculation of capitalized amount of borrowing expenses
Interest expenses of special loans (net of interest income from unutilized loans deposited in bank or investment gain earned from temporary investment) and supplementary expenses incurred for the construction or production of asset that meets capitalization conditions before the asset reaches expected useable or saleable condition are capitalized.
The interest amount that should be capitalized on normal borrowings is calculated based on the weighted average of expenses of the aggregate asset exceeding the expenses of the portion of special loan multiplied by the capitalization ratio of the normal borrowings utilized. Capitalization ratio is calculated based on normal weighted average interest rate.
19. Biological assets
Nil
20. Oil-and-gas assets
Nil
21. Intangible assets
(1) Valuation method, service life and impairment test
(1) Measurement of intangible assets
Intangible assets are accounted at the actual cost when acquired. The cost of externally purchased intangible assets includes the purchase price, relevant taxation and other expenses directly attributable to bringing the asset to expected usage. If payment for the price of intangible assets purchased is delayed beyond normal credit conditions and is in fact financing in nature, the cost of the intangible asset is determined based on the present value of the purchase price.
For intangible asset obtained through debt restructuring for offsetting the debt of the debtor, the entry value of the intangible asset is determined based on its fair value, and the difference between the carrying amount of the
restructured debt and the fair value of the intangible asset used for offsetting the debt is recognized in profit or loss for the period. The entry value of intangible asset received in an exchange for non-monetary asset is based on the fair value of the asset surrendered, provided that the asset received in exchange for non-monetary asset has a commercial substance and the fair value of both the asset received and the asset surrendered can be reliably measured, except there is definite evidence that the fair value of the asset received is more reliable; for exchange of nonmonetary asset that cannot satisfy the above conditions, the cost of the intangible asset received is based on the carrying amount of the asset surrendered and the amount of relevant taxation payable, and no profit or loss is recognized.
For intangible asset obtained through business absorption or combination of entities under common control, the entry value is determined by the carrying amount of the combined party; for intangible asset obtained through business absorption or merger of entities not under common control, the entry value is determined by the fair value of the intangible asset.
(2) Amortization of intangible assets
Intangible asset with a limited life is amortized using straight line method over the term which it brings economic benefit to the Company. If the term of economic benefit the intangible asset can bring to the Company cannot be estimated, it is deemed to be an intangible asset with indefinite life, which shall not be amortized.
(3) Regular review of useful life
The expected useful life and amortization method for intangible assets with definite useful life are reviewed at the end of each year, and adjusted when necessary. In case that the useful life of an intangible asset is limited, the Company shall estimate the term of the useful life or quantity of output or similar measurement units constituting the useful life. The useful life of intangible assets shall be reviewed annually, and they are also subject to impairment test. At the end of each accounting period, useful life and amortization method for intangible assets with definite useful life are reviewed. Where the useful life and amortization method is different from the previous estimate, the company shall change term and method for amortization. Besides, the company shall also review the useful life of intangible assets with indefinite useful life in each accounting period. if there is any evidence showing that an intangible asset has definite useful life, the company shall estimate the useful life according the above rules.
(4) Impairment of intangible assets
The Company makes a judgment on whether there is any sign of possible assets impairment on the balance sheet date. With respect to goodwill arising from business combination and intangible assets with indefinite useful life, they are subject to impairment test annually regardless of whether there is any sign of impairment. If there is any sign of impairment, the company shall estimate the recoverable amount which shall be determined at the higher of the net amount of fair value of the asset less disposal costs and the present value of the predicted future cash flow of the asset. In particular, the disposal costs include legal expenses, taxes, delivery expense relating to the asset disposal and other expenses directly occurred to make the asset available for sale.
(2) Internal accounting policies relating to research and development expenditures
(1) Categorization of the expenditure in research stage and expenditure in development stage
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:①it is technically feasible that the intangible asset can be used or sold upon completion;
②there is intention to complete the intangible asset for use or sale;
③the intangible asset can produce economic benefits, including there is evidence that the products produced using the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for the intangible asset;
④there is sufficient support in terms of technology, financial resources and other resources in order to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
22. Impairment of long-term assets
The Company makes a judgment on whether there is any sign of possible long-term assets impairment on the balance sheet date. Where there is a sign indicating potential impairment, the Company will estimate the recoverable amount. And if the recoverable amount of an asset is less than its carrying value, the carrying value shall be written down to the recoverable amount and the amount written down shall be recognized as impairment loss and included in current profit or loss. Meanwhile, the Company shall make impairment provision for the asset accordingly.
No matter whether there is any sign of possible assets impairment, the goodwill formed by the merger of enterprises and intangible assets with uncertain service lives shall be subject to impairment test every year. The estimate of the recoverable amount of the assets are determined at the higher of the net amount of the fair value less the disposal expenses and the present value of the estimated future cash flows.
The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs.
Once the asset impairment loss is recognized, it will not be reversed in the subsequent periods.
After the loss of asset impairment has been recognized, the depreciation or amortization expenses of the impaired asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the asset systematically (deducting the expected net residual value) within the residual service life of the asset. 23. Long-term deferred expenses
Long-term deferred expenses are those prepaid expenses with an amortization period of more than one year
(excluding one year), such as improvement expense occurred on fixed assets leased under operating leasing arrangement. Long-term deferred expenses are amortized in installment on an average basis over the period which is expected to be benefitted from such expenses. In case that the long-term deferred expenses are not likely to benefit the subsequent accounting periods, the outstanding value of the item to be amortized shall be included in current profit or loss in full.
24. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The non-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The post-employment benefit including the defined contribution plans. And defined contribution plans including basic endowment insurance, unemployment insurance and annuity, corresponding payable amount will reckoned into relevant assets costs or current gains/losses while occurred.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is earlier.
(4) Accounting for other long-term employee benefits
For other long-term employee benefits provided by the Company to its employees, if satisfy with the established withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for under defined benefit scheme.
25. Accrued liabilities
(1) When the obligations arising from provision of external guarantee, lawsuits, product quality guarantee and contract loss and other contingent issues become the present obligations of the company, the performance of which is likely to result in outflow of benefit from the company and the amount of which can be measured reliably, the company shall recognize such obligations as projected liabilities.
(2) Projected liabilities are initially measured at the best estimate on the expenses required to perform the relevant
present obligation by the Company, and the carrying value of project liabilities are reviewed on each balance sheet date.
26. Share-based payment
Share based payment refers to the transactions involving grant of equity instrument or assume liabilities as determined based on equity instrument for the purpose of acquiring services from employees or other parties. Share based payment is divided into the equity settled share based payment and cash settled share based payment. The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity instruments granted to the employees. The cash-settled share-based payment shall be measured at the fair value of the liability that determined on the basis of shares or other equity instruments undertaken by the enterprise
27. Other financial instruments including senior shares and perpetual bonds
(1) Distinguish of senior shares and perpetual bonds
The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject to satisfaction of all the below conditions:
①the financial instrument excludes delivery of cash or other financial assets to others, or exchange for contractual obligations on financial assets or financial liabilities with others under potential negative conditions;
②if its own equity instruments are required or may be used to settle the financial instruments, it excludes the contractual obligation to deliver varied numbers of own equity instruments for settlement provided that the financial instruments are non-derivatives; if the financial instruments are derivatives, the Company can only settle the financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash or other financial assets.
Other than the financial instruments which can be classified as equity instruments under the above conditions, other financial instruments issued by the Company shall be classified as financial liabilities.
In case that financial instruments issued by the Company are compound financial instruments, they shall be recognized as liabilities at the fair value of liabilities portion. The actual amount received less fair value of the liabilities portion shall be recognized as other equity instrument. Transaction expenses occurred in issuance of compound financial instruments are allocated to the portions of liabilities and equities according to their respective proportion to the total issuance price.
(2) Accounting for perpetual bonds and senior shares
For perpetual bonds and senior shares classified into financial liabilities, their relevant interest, dividends, gains or losses and gains or losses arising from redemption or refinancing are all included in current profit or loss other than those borrowing expenses which meet condition for capitalization (please refer to Note V-18 “borrowing expenses”).
For perpetual bonds and senior shares classified into equity instruments, their issuance (including refinancing), repurchase, sale or cancel are treated as change of equity, and relevant transaction fees are also deducted from
equity. The Company accounts for allocation of holders of equity instruments as profit distribution.
The Company dose not recognizes change of fair value of equity instruments.
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Goods sales
Income from sale of goods is recognized when the following conditions are met: (1)the Company has transferred the key risks and return on the ownership of the merchandize to the buyer; (2)the Company has not retained continued management rights associated with ownership and no longer exercises effective control on the merchandize sold; (3)the amount of income can be reliably measured; (4)the relevant economic benefits are very likely to flow to the enterprise; (5)the costs incurred or to be incurred can be reliably measured.
(2) Rendering of services
When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it is probable that the economic benefits will flow to the Company, the percentage of completion of the transaction can be determined reliably, and the costs of the transaction incurred and to be incurred can be measured reliably), revenue from rendering of services is recognized using the percentage of completion method, and the stage of completion is determined at the proportion of costs incurred to the estimated total costs. When the outcome of the transaction cannot be estimated reliably at the balance sheet date, revenue is recognized based on the amount of the costs incurred and the costs incurred are charged off at the same amount when the costs incurred are expected to be recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of the period when the costs incurred are not expected to be recovered.
(3) Transfer of asset use right
When the economic benefits related to the transaction is likely to flow to the Company and the income amount can be reliably calculated, the Company shall recognize income arising from transfer of asset use right. The income of interests is determined on basis of the time and real interest rate of theCompany’s cash funds which is utilized by other persons. The income of royalties is determined on basis of the chargeable time and method fixed under relevant agreement or contract.
(4) Interest income
Recognized based on the times and real interest rates for the money used by others
29. Government Grants
(1)Determination basis for government grant related to assets and accounting treatment thereof
1) Type
Government grant refers to those monetary assets and non-monetary assets received by the Company from government at nil consideration. Based on the grantee as stipulated by the relevant government documents, government grants are classified into those related to assets and those related to income.
Government grant related to assets refers to those obtained by the Company for construction or otherwise formation of long term assets. Government grant related to income refers to such government grant other than those related to assets.
2) Recognition of government grant
Amount of receivables relating to which there is evidence showing that the Company is able to meet relevant financial supporting policies and is expected to be able for the Company to receive financial supporting funds shall be recognized as government grant as at the end of a specific period, otherwise it shall be recognized upon actual receipt.
Where government grant is monetary assets, it shall be measured based on the amount received or receivable. Where government grant is non-monetary assets, it shall be measured at fair value, and if the fair value cannot be measured reliably, it shall be measured at nominal value (RMB1.00). For those government grants measured at nominal value, they shall be recorded in profit and loss for the period directly.
3) Accounting
A. Government grant related to assets shall be accounted to offset the carrying value of relevant assets or recognized as deferred income. In case this kind of government grant has been recognized as deferred income, it shall be recorded in profit or loss installment during the service life of the relevant assets under reasonable and systematic methods. Government grant measured at nominal value shall be recorded in profit or loss for the period directly.
In case that the relevant assets are disposed of, transferred, regarded as useless or destroyed prior to the end of their service life, the deferred income balance not allocated yet shall be transferred into gains or loss from assets disposal for the period.
Government grant associated with acompany’s normal operation shall be recorded in other income or used to offset relevant cost expenses based on the substance of economic business.
B. It is a common practice for governmental finance authorities to pay an enterprise discounted interests, and the enterprise shall apply the discounted interests to offset relevant borrowing expense.
C. In respect of recognized government grant which is required to return, it shall be accounted for during the return period based on the following cases:
a. in case of offset of relevantassets’ carrying value upon initial recognition, the carrying value shall be adjusted;
b. in case of existence of deferred income, carrying balance of deferred income shall be offset, and the surplus portion (if any) shall be recorded in profit or loss for the period.
c. otherwise it shall be recorded in profit or loss for the period directly.
(2) Determination basis for government grant related to income and accounting treatment thereof
Government grant related to income shall be accounted for as follows:
1) recognized as deferred income in case that the grant is used to compensate the relevant cost expense or loss of a company in future periods, and recorded in profit or loss for the period or offset relevant costs during the period when the relevant cost expense or loss is recognized;
2) recorded in profit or loss for the period or offset relevant costs directly in case that the grant is used to compensate the relevant cost expense or loss occurred by a company.
In respect of government grant which comprises portions related to assets and income both, different accounting shall be adopted for different portions. Where it is difficult to distinguish these two portions, the grant shall be classified as grant related to income in its entirety.
30. Deferred tax assets / deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets and liabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
(2) A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable that future taxable profits will be available against which deductible temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized. (3) At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable income will be available.
(4) The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding those arising from the following circumstances:① business combination; and② the
transactions or items directly recognized in equity.
31. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the lease term. Initial expenses, other than those with material amount and eligible for capitalization which are recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged into profit or loss in the periods in which they are incurred.
(2) Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception of lease and the present value of minimum lease payment is recognized as the value of leased assets. The minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each period of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured balance also recorded. The difference between the sum of minimum lease income, initial direct expense and unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period of the lease term, current finance income is calculated using effective interest method.
32. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and presented separately under operation segments and financial statements, which has fulfilled one of the following criteria:① it represents an independent key operation or key operating region;② it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operating region; or③ it only establishes for acquisition of subsidiary through disposal.
Accounting for discontinued operation is set out in note V-13 “classified as assets held for sale”.
33. Major accounting policy and changes
(1) Main accounting policy changes
√ Applicable□Not applicable
||||
|-|-|-|
|Content and reasons|Approval procedures|Note|
|Pursuant to the notice issued by the Ministry of Finance|||
|||Impact of this change of accounting|
|on 10 May 2017 relating to issuance of the amended|||
|||policies in our consolidated financial|
|No.16 of Enterprise Accounting Standards –|||
|||statement is the change of accounting|
|Government Grant (No. CK[2017]15), government|||
|||item for government grant: government|
|grant associated with a company’s normal operation|||
|||grant related to our normal operation|
|shall be recorded in “other income” or used to offset|||
|||shall be recorded as “other income” and|
|relevant cost expenses based on economic substance;|||
|||reported separately under the item of|
|government grant not associated with a company’s|||
|||“operating profit” in profit statement.|
|normal operation should be recognized as|2nd Meeting of 10th BOD||
|||These adjustments are only made to the|
|non-operating income or expense. These provisions|||
|||reporting items and structure of profit|
|have come into effect since 12 June 2017. Government|||
|||statement, with no impact on the|
|grants existed as at 1 January 2017 shall be accounted|||
|||Company’s profit for the period or|
|for under prospective application method, and those|||
|||shareholders’ interests, no impact on our|
|new government grants increased between 1 January|||
|||financial condition and operating results|
|2017 and the date when the new provision came into|||
|||and no involvement of the retrospective|
|effect are subject to adjustments under the new|||
|||adjustment for the previous years.|
|government grant standards.|||

(2) Changes of important accounting estimate
□ Applicable√ Not applicable
34. Other
Nil
VI. Taxes
1. Main tax category and tax rate
||||
|-|-|-|
|Tax category|Tax calculation evidence|Tax rate|
||Sales of goods, taxable labor service||
|Value added tax||17%|
||revenue and taxable income||
|Tax for maintaining and building cities|Turnover tax payable|7%|
|Business income tax|||
||Taxable income|25.00%|

深圳中华自行车(集团)股份有限公司2017年半年度财务报告
|||||
|-|-|-|-|
|Educational surtax||Turnover tax payable|3%|
||Local educational surtax|||
|||Turnover tax payable|2%|
|Stamp tax||Amount of the purchasing and sales||
||||0.03%|
|||contract||

Disclose reasons for different taxpaying body
|||
|-|-|
|Taxpaying body|Income tax rate|

2. Tax preference
Nil
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Cash on hand|77,429.04|132,652.06|
|Cash in bank|15,099,876.44|23,768,774.82|
|Other monetary fund||113,860.83|
|Total|15,177,305.48|24,015,287.71|

 Other explanation
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential recovery risks arising from pledge, mortgage or frozen.
2. Financial assets measured by fair value and reckoned into current gains/losses with its variation
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

4. Note receivables
(1) Classification of notes receivable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Bank acceptance bill|5,139,578.00|2,220,000.00|
|Total|5,139,578.00|2,220,000.00|

 (2) Pledge at period-end
In RMB
|||
|-|-|
|Item|Amount pledge at period-end|
|Total|0.00|

 (3) Notes endorsement or discount and undue on balance sheet date
In RMB
||||
|-|-|-|
|Item|Amount derecognition at period-end|Amount not derecognition at period-end|
|Bank acceptance bill|25,066,473.00||
|Total|25,066,473.00||

(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
|||
|-|-|
|Item|Amount transfer to account receivable at period-end|
|Total|0.00|

 Other explanation
There are no notes that transfer to account receivable due for the drawer failure to perform the contract at period-end.
5. Accounts receivable
(1) Accounts receivable by category
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Ending balance||||Opening balance|||||
||Book balance||Bad debt provisionAccrualAmountratio||Book balance||Bad debt provision|||
|Category||||Book||||||
|||||||||Accrual|Book value|
||Amount|Ratio|Amount|value|Amount|Ratio|Amount|||
|||||||||ratio||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Receivables with bad||||11.94%|||||||
|debt provision|10,787,3||1,287,54||9,499,833|12,479,||1,292,617||11,186,420.|
|||85.23%|||||86.34%||10.36%||
|accrual by credit|75.68||2.32||.36|037.76||.31||45|
|portfolio|||||||||||
|Accounts with single||||40.00%|||||||
|significant amount|||||||||||
||1,869,94||747,977.||1,121,966|1,974,9||789,977.5||1,184,966.3|
|and bad debts||14.77%|||||13.66%||40.00%||
||3.96||58||.38|43.96||9||7|
|provision accrued|||||||||||
|individually|||||||||||
||12,657,3||2,035,51|16.08%|10,621,799.74|14,453,||2,082,594||12,371,386.82|
|Total||100.00%|||||100.00%||14.41%||
||19.64||9.90|||981.72||.90|||

 Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable√ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Ending balance|||
|Age||||
||Account receivable|Bad debt provision|Accrual ratio|
|Within one year||||
|Within 1 year|9,006,798.39|27,020.40|0.30%|
|Subtotal within one year|9,006,798.39|27,020.40|0.30%|
|1-2 years|79,894.08|239.68|0.30%|
|2-3 years|441,726.15|1,325.18|0.30%|
|Over 3 years|1,258,957.06|1,258,957.06|100.00%|
|Total|10,787,375.68|1,287,542.32|11.94%|

 Explanation on combination determines:
According to the business scale, business nature, andcustomers’ settlement, etc., the account receivable with single significant amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
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:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 0 Yuan; the amount collected or switches back amounting to 47,075.00 Yuan.
Important bad debt provision collected or switch back:
In RMB
||||
|-|-|-|
|Company|Collected or switch back amount|Collection way|
|Total|0.00|--|

Nil
(3) Account receivable actual charge off in the Period
In RMB
|||
|-|-|
|Item|Amount written off|

Written-off for the major receivable:
In RMB
|||||||
|-|-|-|-|-|-|
|||||Verification|Arising from related|
|Company|Nature|Amount written off|Reason for write-off|||
|||||procedures|transaction (Y/N)|
|Total|--|0.00|--|--|--|

 Explanation for write-off of receivables:
There is no actual write off of accounts receivable in Period.
(4) Top 5 receivables at ending balance by arrears party
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Relationship|||||||||
||||||||||Ratio in tota|||
||||||||Account|||||
||Item||with the||Amount||||l receivables||Nature|
||||||||age|||||
||||company||||||(%)|||
|Jinan Yuxintai Sales Co., Ltd.||Unrelated party||3,499,296.65||Withinone year||27.65%||Tradereceivable||
|Suzhou Jiaxin Economy and Trade Co.,Ltd.||Unrelated party||1,457,049.92||Withinone year||11.51%||Tradereceivable||
|Jinan Daming Kemao Co., Ltd.||Unrelated party||1,294,549.38||Withinone year||10.23%||Tradereceivable||
|Shijiazhuang Dasong Technology Co.,Ltd.||Unrelated party||1,278,283.50||Withinone year||10.10%||Tradereceivable||
|Hebei Branch of CBC Group||Unrelated party||1,144,690.91||Over 3 years||9.04%||Tradereceivable||
|Total||-||8,673,870.36||-||68.53%||-||

 (5) Receivable derecognition due to transfer of financial assets
Note: explain the transfer way for financial assets, amount of receivable that re-recognized, and gains/losses while re-recognized.
(6) Assets and liability resulted by receivable transfer and continuous involvement
Note: explain the transfer way for financial assets, and amount of assets or liabilities continuous involvement item by item
Other explanation:
6. Advance payment
(1) Listed by account age
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Ending balance|||Opening balance||
|Age|||||||
|||Amount|Ratio||Amount|Ratio|
|Within one year||1,296,894.88|89.20%||1,667,424.89|89.29%|
|1- 2 years||200,000.00|10.80%||200,000.00|10.71%|
|2-3 years|||||||
|Over 3 years|||||||
|Total|1,496,894.88||--|1,867,424.89||--|

Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
The subscription 200,000.00 Yuan paid to Huihuangda Bicycle (Shenzhen) Co., Ltd. for 1000 OEM bicycles in advance. The subscription will pay the final money according to the agreement. The business still not settles till end of the period
(2) Top 5 advance payment at ending balance by prepayment object
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Ratio in t|||
||||Relationship|||||||||
||||||||Account||otal adva|||
||Item||with the||Amount||||||Nature|
||||||||age||nce e pay|||
||||company|||||||||
||||||||||ment (%)|||
|Tianjin Shuntian Electric Bicycle Co.,Ltd.||Unrelated||1,279,523.55||Within oneyear||85.48%||Prepayments formaterials||
|Huihuangda Bicycle (Shenzhen) Co.,Ltd.||Unrelated||200,000.00||1-2 years||13.36%||Prepayments formaterials||
|Shenzhen ZHengyijia TechnologyCo.,Ltd.||Unrelated||10,800.00||Within oneyear||0.72%||Prepayments formaterials||
|Shenzhen Jiekang Industrial Co., Ltd.||Unrelated||3,375.00||Within oneyear||0.22%||Prepayments formaterials||

深圳中华自行车(集团)股份有限公司2017年半年度财务报告
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||||Ratio in t|
||||Relationship|||||||
||||||||Account||otal adva|
||Item||with the||Amount|||||
||||||||age||nce e pay|
||||company|||||||
||||||||||ment (%)|
|Shenzhen Yuanshun Sports ApparatusCo., Ltd.||Unrelated||1,890.00||Within oneyear||0.13%||
|Total||-||1,495,588.55||-||99.91%||

Note: In accordance with the concentration ratio, aggregation or closing balance of prepayment of the top five closing balance respectively disclosed and the proportion of the total number of closing balance of prepayment
Other explanation:
7. Interest receivable
(1) Interest receivable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Time deposit|||
|Loan by mandate|||
|Debt investment|||
|Total|0.00|0.00|

 (2) Important overdue interest
||||||
|-|-|-|-|-|
|||Overdue time Overdue||Impairment (Y/N) and|
|Borrower|Ending balance||Overdue reason||
|||time||judgment basis|
|||--|--|--|
|Total|0.00||||

Other explanation:
Nil
8. Dividend receivables
(1) Dividend receivables
In RMB
||||
|-|-|-|
|Item (or the invested entity)|Ending balance|Opening balance|

(2) Major dividend receivables with over one year age
In RMB
||||||
|-|-|-|-|-|
|Item or the invested||||Impairment (Y/N) and|
||Ending balance|Age|Reasons||
|entity)||||judgment basis|
|Total|0.00|--|--|--|

Other explanation:
Nil
9. Other accounts receivable
(1) Other accounts receivable by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ending balance|||||Opening balance|||||
||Book balance||Bad debt provisionAccrualAmountratio|||Book balance||Bad debt provision|||
|Category|||||Book||||||
||||||||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
||||||||||ratio||
|Other receivables||||43.26%|||||||
|with bad debt|1,046,10||452,521.||593,588.2|1,111,4||452,717.7|||
|||100.00%|||||100.00%||40.73%|658,754.09|
|provision accrual by|9.89||64||5|71.82||3|||
|credit portfolio|||||||||||
||1,046,10||452,521.|43.26%|593,588.25|1,111,4||452,717.7||658,754.09|
|Total||100.00%|||||100.00%||40.73%||
||9.89||64|||71.82||3|||

Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable√ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Ending balance|||
|Age||||
||Other accounts receivable|Bad debt provision|Accrual ratio|
|Within one year||||
|Within one year|314,641.37|943.92|0.30%|
|Subtotal within one year|314,641.37|943.92|0.30%|
|1-2 years|208,705.00|626.12|0.30%|
|2-3 years|72,028.00|216.08|0.30%|
|Over 3 years|450,735.52|450,735.52|100.00%|
|Total|1,046,109.89|452,521.64|43.26%|

Explanations on combination determine:
According to the business scale, business nature, andcustomers’ settlement, etc., the other account receivable with single big amount is determined to be RMB 5 million. The other account receivable with single big amount has no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
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 collected or switch back
Bad debt provision accrual was 0 Yuan; the amount collected or switches back amounting to 196.09 Yuan.
Important bad debt provision collected or switch back:
In RMB
||||
|-|-|-|
|Company|Amount reversal or collected|Collection way|
|Total|0.00|--|

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

Written-off for the major other receivable:
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of other|||Verification|Arising from related|
|Company||Amount written off|Reason for write-off|||
||receivables|||procedures|transaction (Y/N)|
|Total|--|0.00|--|--|--|

 Explanation for write-off of other receivables:
Nil
(4) Other receivables by nature
In RMB
||||
|-|-|-|
|Nature|Ending book balance|Opening book balance|
|Margin or deposit|584,750.00|503,614.00|
|Equipment money|311,400.00|311,400.00|
|Staff personal loans|72,098.50|111,870.60|
|Other|77,861.39|184,587.22|

||||
|-|-|-|
|Total|1,046,109.89|1,111,471.82|

 (5) Top 5 other receivables at ending balance by arrears party
In RMB
|||||||
|-|-|-|-|-|-|
|||||Ratio in total ending||
||||||Ending balance of|
|Company|Nature|Ending balance|Age|balance of other||
||||||bad bet provision|
|||||receivables||
|Shenzhen Luwei||||||
|Machine nary|Equipment money|300,000.00|Over 3 years|28.68%|300,000.00|
|Equipment Co., Ltd.||||||
|Shenzhen||||||
|Anjingheng|Margin or deposit|150,900.00|1-2 year|14.43%|452.70|
|Industrial Co., Ltd.||||||
|Shenzhen Material||||||
||Margin or deposit|135,723.00|1-2 year|12.97%|407.17|
|Group Co., Ltd.||||||
|Tianjin Lvchi||||||
||Margin or deposit|72,000.00|1-2 year|6.88%|216.00|
|E-Business Co., Ltd.||||||
|Alipay (China)||||||
|Network Technology|Margin or deposit|50,000.00|1-2 year|4.78%|150.00|
|Co., Ltd.||||||
|Total|--|708,623.00|--|67.74%|301,225.87|

 (6) Account receivable with government grants involved
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Company|Item|Ending balance|Ending age|of amount collection|
|||||estimated|
|Total|--|0.00|--|--|

(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
10. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Inventory classification
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserve|||reserve||
|Raw materials|535,609.59|40,706.54|494,903.05|785,399.89|40,706.54|744,693.35|
|Finished goods|5,595,790.29|5,519.40|5,590,270.89|2,379,266.31|5,519.40|2,373,746.91|
|Total|6,131,399.88|46,225.94|6,085,173.94|3,164,666.20|46,225.94|3,118,440.26|

 Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange No.4– Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase in the current period||Decrease in the current period|||
|Item|Opening balance|||Switch back or||Ending balance|
|||Accrual|Other||Other||
|||||write-off|||
|Raw materials|40,706.54|||||40,706.54|
|Finished goods|5,519.40|||||5,519.40|
|Total|46,225.94|||||46,225.94|

 (3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
|||
|-|-|
|Item|Amount|

Other explanation:
Nil
11. Assets holding ready for sold
In RMB
||||||
|-|-|-|-|-|
||||Expected disposal||
|Item|Ending book value|Fair value||Expected disposal time|
||||expenses||
|Total|0.00|0.00|0.00|--|

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

Other explanation:
Nil
13. Other current assets
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Prepaid intermediary fee|1,792,452.81|1,509,433.95|
|Prepaid tax|763,158.94|541,396.60|
|Total|2,555,611.75|2,050,830.55|

 Other explanation:
Nil
14. Financial assets available for sale
(1) Financial assets available for sale
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Total|0.00|0.00||0.00|0.00||

(2) Financial assets available for sale measured by fair value at period-end
In RMB
|||||
|-|-|-|-|
|Type|Equity instrument|Debt instrument|Total|

|||
|-|-|
|available for sale|available for sale|

(3) Financial assets available for sale measured by cost at period-end
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Depreciation reserves||||Ratio of||
|The|||||||||share-holdi||
|||||||||||Cash|
|invested|Period-beg||||Period-beg||||ng in||
|||Increased|Decreased|Period-end||Increased|Decreased|Period-end||dividend|
|entity|inning||||inning||||invested||
||||||||||entity||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|--|0.00|

 (4) Changes of impairment in Period
In RMB
|||||
|-|-|-|-|
||Equity instrument|Debt instrument||
|Type|||Total|
||available for sale|available for sale||
|Balance of impairment||||
||||0.00|
|accrual at period-begin||||
|Current accrual|||0.00|
|Including: transfer-in||||
|from other|||0.00|
|comprehensive income||||
|Current decrease|||0.00|
|Including: switch back||||
|due to fair value rebound|||0.00|
|at period-end||||
|Balance of impairment||||
||||0.00|
|accrual at period-end||||

(5) Fair value of equity instrument available for sale sharply declined or other-than-temporary declined at period-end without depreciation reserves accrual
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Fair value|Time of drops|Amount with||
|||||||Reasons for|
|Item|Investment cost|Ending fair value|declined relative|persistently|impairment||
|||||||un-accrual|
||||to cost|(month)|accrual||
|Total|0.00|0.00|--|--|0.00|--|

Other explanation
Nil
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Total|0.00|0.00||0.00|0.00||

(2) Important held-to-maturity investment at period-end
In RMB
||||||
|-|-|-|-|-|
|Bond|Face value|Coupon value|Actual rate|Maturity date|
|Total|0.00|--|--|--|

(3) Held-to-maturity investment reclassify in the Period
Nil
Other explanation
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Ending balance|||Opening balance||||
||||||||Discount rate|
|Item||Bad debtprovision|||Bad debt|||
||Book balance||Book value|Book balance||Book value|section|
||||||provision|||
|Total|0.00|0.00||0.00|0.00||--|

 (2) Long-term account receivable derecognition due to transfer of financial assets
Nil
(3) Assets and liability resulted by long-term account receivable transfer and continuous involvement Nil
Other explanation
Nil
深圳中华自行车(集团)股份有限公司2017年半年度财务报告
17. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||+,-||||||||||
||||||||||||Ending|
||||||Other||Cash|||||
|||||Investme|||||||balance|
|The||Additiona|||comprehe||dividend|||||
||Opening|||nt gains||Other||||Ending|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||||||||||||
|Subtotal|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|II. Associated enterprise||||||||||||
|Subtotal|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Total|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

 Other explanation
Nil
18. Investment real estate
(1) Investment real estate measured at cost
□ Applicable√ Not applicable
(2) Investment real estate measured at fair value
□ Applicable√ Not applicable
(3) Certificate of title un-completed
In RMB
||||
|-|-|-|
|Item|Book value|Reasons for un-completed|

 Other explanation
Nil
19. Fixed assets
(1) Fixed assets
In RMB
||||||
|-|-|-|-|-|
|Item|Houses and|Transport tools|Machines equipme|Electronic|
||buildings||nt|equipment and|

|||||||
|-|-|-|-|-|-|
|||||other||
|I. Original book||||||
|value:||||||
|1.Opening||||||
||2,959,824.00|564,123.99|416,629.06|635,351.81|4,575,928.86|
|balance||||||
|2. Increased in||||||
||0.00|0.00|0.00|31,940.00|31,940.00|
|the Period||||||
|(1) Purchase|0.00|0.00|0.00|31,940.00|31,940.00|
|(2)||||||
|construction in|0.00|0.00|0.00|0.00|0.00|
|process transfer-in||||||
|(3) the||||||
|increase in||||||
||0.00|0.00|0.00|0.00|0.00|
|business||||||
|combination||||||
|3. Decreased in||||||
||0.00|0.00|0.00|0.00|0.00|
|the Period||||||
|(1) Disposal or||||||
||0.00|0.00|0.00|0.00|0.00|
|scrap||||||
|4.Ending||||||
||2,959,824.00|564,123.99|416,629.06|667,291.81|4,607,868.86|
|balance||||||
|II. accumulated||||||
|depreciation||||||
|1.Opening||||||
||66,596.04|229,871.16|71,749.48|478,757.07|846,973.75|
|balance||||||
|2. increased in||||||
||66,596.04|50,771.16|18,748.32|9,021.45|145,136.97|
|the Period||||||
|(1) provision|66,596.04|50,771.16|18,748.32|9,021.45|145,136.97|
|3. Decreased in||||||
||0.00|0.00|0.00|0.00|0.00|
|the Period||||||
|(1) Disposal or||||||
||0.00|0.00|0.00|0.00|0.00|
|scrap||||||
|4.Ending||||||
||133,192.08|280,642.32|90,497.80|487,778.52|992,110.72|
|balance||||||

|||||||
|-|-|-|-|-|-|
|III. impairment of||||||
|preparation||||||
|1.Opening||||||
||0.00|0.00|0.00|0.00|0.00|
|balance||||||
|2. increased in||||||
||0.00|0.00|0.00|0.00|0.00|
|the Period||||||
|(1) provision|0.00|0.00|0.00|0.00|0.00|
|3. Decreased in||||||
||0.00|0.00|0.00|0.00|0.00|
|the Period||||||
|(1) Disposal or||||||
||0.00|0.00|0.00|0.00|0.00|
|scrap||||||
|4.Ending||||||
||0.00|0.00|0.00|0.00|0.00|
|balance||||||
|IV. book value||||||
|1.Ending book||||||
||2,826,631.92|283,481.67|326,131.26|179,513.29|3,615,758.14|
|value||||||
|2. Opening||||||
||2,893,227.96|334,252.83|344,879.58|156,594.74|3,728,955.11|
|book value||||||

(2) Fixed assets temporary idle
In RMB
|||||||
|-|-|-|-|-|-|
|||Accumulateddepreciation|Depreciation|||
|Item|Original book value|||Book value|Note|
||||reserves|||

(3) Fixed assets leased through operating lease
In RMB
||||||
|-|-|-|-|-|
|||Accumulated|||
|Item|Original book value||Depreciation reserves|Book value|
|||depreciation|||

(4) Fixed assets leased through operating lease
In RMB
|||
|-|-|
|Item|Ending book value|

(5) Certificate of title un-completed
In RMB
||||
|-|-|-|
|Item|Book value|Reasons|
|||Purchasing six properties of Lianxin|
|||Garden with original value of|
|||2,959,824.00 Yuan in 2016. The property|
|||purchasing refers to the indemnificatory|
|||housing for enterprise talent buying from|
|||Shenzhen Housing and Construction|
|Six properties in Lianxin Garden|2,826,631.92|Bureau of Luohu District. According to|
|||the agreement, the enterprise shall not|
|||carrying any kind of property trading|
|||with any units or individuals except the|
|||government, and the company has no|
|||property certification on the above|
|||mentioned properties.|

Other explanation
No accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at period-end.
20. Construction in progress
(1) Construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Opening balance|||
|Item||Depreciation|||Depreciation|Book value|
||Book balance||Book value|Book balance|||
|||reserves|||reserves||
|Total|0.00|0.00||0.00|0.0|0|

(2) Changes in significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Accumul|including|||
||||||||Proporti||||||
|||||Fixed|||||ated|: interest|Interest||
||||||Other||on of||||||
||||increased|assets|||||amount|capitaliz|capitaliz||
|||Openingbalance|||decrease|Ending|project|||||Source of|
|Item|Budget||in the|transfer-i||||Progress|of|ed|ation rate||
||||||d in the|balance|investme|||||funds|
||||Period|n in the|||||interest|amount|of the||
||||||Period||nt in||||||
|||||Period|||||capitaliz|of the|period||
||||||||budget||||||
||||||||||ation|period|||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|--|--|0.00|0.00|0.00%|--|

(3) Depreciation reserves accrual
In RMB
||||
|-|-|-|
|Item|Accrual Amount|Reasons|
|Total|0.00|--|

Other explanation
Nil
21. Engineering materials
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
22. Disposal of fixed assets
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable√ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable√ Not applicable
24. Oil-and-gas assets
□ Applicable√ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
|Item|Land use right|Patent|Non-patent|Trademark|Total|

|||||
|-|-|-|-|
||technology|||
|I. original book||||
|value:||||
|1.Opening balance||5,271,000.00|5,271,000.00|
|2. increased in the||||
|||0.00|0.00|
|Period||||
|(1) Purchase||0.00|0.00|
|(2) internal R||||
|||0.00|0.00|
|& D||||
|(3) the||||
|increase in business||0.00|0.00|
|combination||||
|3.DecreasedAmount||0.00|0.00|
|(1) Disposal||0.00|0.00|
|4.Ending balance||5,271,000.00|5,271,000.00|
|II. accumulated||||
|depreciation||||
|1.Opening balance||2,259,000.00|2,259,000.00|
|2. increased in the||||
|||376,500.00|376,500.00|
|Period||||
|(1) provision||376,500.00|376,500.00|
|3.DecreasedAmount||0.00|0.00|
|(1) Disposal||0.00|0.00|
|4.Ending balance||2,635,500.00|2,635,500.00|
|III. impairment of||||
|preparation||||
|1.Opening balance||0.00|0.00|
|2. increased in the||||
|||0.00|0.00|
|Period||||
|(1) provision||0.00|0.00|
|3.DecreasedAmount||0.00|0.00|
|(1) Disposal||0.00|0.00|
|4.Ending balance||0.00|0.00|
|IV. book value||||
|1.Ending book||||
|||2,635,500.00|2,635,500.00|
|value||||

||||
|-|-|-|
|2. Opening book|||
||3,012,000.00|3,012,000.00|
|value|||

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

Other explanation:
No accrual of impairment provision due to there was no impairment evidence being found in intangible assets at end of the period
26. Development expense
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Opening|||||||
|Item||Increased in the Period||Decreased in the Period|||Ending balance|
||balance|||||||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

 Other explanation
Nil
27. Goodwill
(1) Original book value of goodwill
In RMB
||||||||
|-|-|-|-|-|-|-|
|The invested|||||||
||Opening balance|Increase during the year||Decreased during the year||Ending balance|
|entity or items|||||||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|

 (2) Depreciation reserves of goodwill
In RMB
||||||||
|-|-|-|-|-|-|-|
|The invested|||||||
||Opening balance|Increase during the year||Decreased during the year||Ending balance|
|entity or items|||||||
|Total|0.00|0.00|0.00|0.00|0.00|0.00|

 Process of impairment testing, parameter and recognition method for impairment losses:
Nil
Other explanation:
Nil
28. Long-term unamortized expenses
In RMB
|||||||
|-|-|-|-|-|-|
|||increased in the|Amortized in the|||
|Item|Opening balance|||Other decrease|Ending balance|
|||Period|Period|||
|Total||0.00|0.00|0.00||

Other explanation
Nil
29. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
||||||
|-|-|-|-|-|
||Ending balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Asset depreciation|||||
||2,534,267.48|633,566.88|2,580,785.12|645,196.29|
|reserves|||||
|Total|2,534,267.48|633,566.88|2,580,785.12|645,196.29|

 (2) Deferred income tax liabilities un-offset
In RMB
||||||
|-|-|-|-|-|
||Ending balance||Opening balance||
|Item|Taxable temporary|Deferred income tax|Taxable temporary|Deferred income tax|
||differences|liabilities|differences|liabilities|
|Total|0.00|0.00|0.00|0.00|

 (3) Deferred income tax assets and deferred income tax liabilities listed after off-set
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|
|Item|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 income tax||633,566.88||645,196.29|
|assets|||||

(4) Details of unrecognized deferred income tax assets
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Total|0.00|0.00|

 (5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
|||||
|-|-|-|-|
|Year|Ending amount|Opening amount|Note|
|Total|0.00|0.00|--|

Other explanation:
As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assets and deferred income tax liabilities shall be measured at the tax rate applicable in the period in which the assets are expected to be recovered or liabilities are expected to be settled according to relevant tax laws on the balance sheet date. The tax rate adopted by the Company in calculating deferred income tax assets is25% for both parent company and subsidiaries.
Due to the uncompensated loss of parent company, the Company did not recognize deferred income tax assets.
30. Other non-current assets
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Advance payment for house|400,000.00|400,000.00|
|Total|400,000.00|400,000.00|

 Other explanation:
In2016, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to Shenzhen Housing and Construction Bureau of Luohu District, the event still in process.
31. Short-term loans
(1)Types of short-term loans
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
||||||
|-|-|-|-|-|
|Unit|Ending balance|Lending rate|Overdue time|Overdue rate|
|Total|0.00|--|--|--|

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

Other explanation:
Nil
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Notes payable
In RMB
||||
|-|-|-|
|Type|Ending balance|Opening balance|

Notes expired at year-end without paid was 0.00 Yuan
35. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Within 1 year (including 1year)|11,562,728.53|9,563,099.99|
|1-2 year (including 2year)|3,084.95|3,084.95|
|Over 3 years|185,792.84|185,792.84|
|Total|11,751,606.32|9,751,977.78|

 (2) Account payable with over one year book age
In RMB
||||
|-|-|-|
|Item|Ending balance|Reasons of un-paid or carry-over|
|Total|0.00|--|

Other explanation:
(3) Top 5 payables at Period-end
Item Relationship Amount Account Ratio in total payables in Nature
with the age advance(%)
company
Baodao Vehicles Group Co., Within Trade Unrelated party 3,859,528.31 32.84
Ltd. one year payable Tianjin Luying Vehicles Co., Within Trade Unrelated party 2,776,581.32 23.63
Ltd. one year payable Jinda Intelligent Technology Within Trade Unrelated party 2,506,554.35 21.33
Co., Ltd. one year payable Tianjin Jianya Electronic Within Trade Unrelated party 1,100,395.34 9.36
Technology Co., Ltd. one year payable Taizhou Huangyan Jisheng Within Trade Unrelated party 231,274.77 1.97
Industrial& Trade Co., Ltd. one year payable Total 10,474,334.09 89.13
36. Account received in advance
(1) Account received in advance
In RMB
||||||
|-|-|-|-|-|
|Item||Ending balance||Opening balance|
|Within one year (one year included)||968,316.34||3,257,952.74|
|1-2 years (2 years included)||503,352.22||503,352.22|
|2-3 years (3 years included)||141,481.50||141,481.50|
|Over 3 years||418,273.37||418,273.37|
|Total|2,031,423.43||4,321,059.83||

 (2) Top 5 account received in advance at Period-end
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Relationship|||||||||
|||||||Account||Ratio in total account|||
|Item||with the||Amount||||||Nature|
|||||||age||received in advance (%)|||
|||company|||||||||
||Unrelatedparty||404,013.70||Over 3 years||19.89||Goodsreceivedinadvance||
|Zhengzhou Daming Kemao Co., Ltd.|||||||||||
||Unrelatedparty||200,689.00||1-2 years||9.88||Goodsreceivedinadvance||
|Henan Xinming Electro car Sales|||||||||||
|Co., Ltd.|||||||||||
||Unrelatedparty||200,462.80||1-2 years||9.87||Goodsreceived||
|Nanchang Ledao Industrial Co., Ltd.|||||||||||

|||||||
|-|-|-|-|-|-|
||||||inadvance|
||Unrelatedparty|68,433.61|Within 1year|3.37|Goodsreceivedinadvance|
|Zhigao (Tianjin) Vehicles Co., Ltd||||||
||Unrelatedparty|62,633.88|1-2 years|3.08|Goodsreceivedinadvance|
|Changzhou Wujin Legou Life||||||
|Shopping Co., Ltd.||||||
|Total|-|936,232.99|-|46.09|-|

 (3) Account received in advance with over one year book age
In RMB
||||
|-|-|-|
|Item|Ending balance|Reasons of un-paid or carry-over|
|Zhengzhou Daming Kemao Co., Ltd.|404,013.70||
|Henan Xinming Electro car Sales Co.,|||
||200,689.00||
|Ltd.|||
|Nanchang Ledao Industrial Co., Ltd.|200,462.80||
|Total|805,165.50|--|

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

Other explanation:
37. Wages payable
(1) Wages payable
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during the||
|Item|Opening balance|||Ending balance|
|||period|period||
|Short-term|||||
||770,985.97|3,001,725.32|3,130,963.44|641,747.85|
|compensation|||||
|Post-employment|||||
|benefit – defined|-|226,101.91|226,101.91|-|
|contribution plan|||||

|||||
|-|-|-|-|
|Total|770,985.97|3,227,827.23|3,357,065.35|

 (2) Short-term compensation
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during the||
|Item|Opening balance|||Ending balance|
|||period|period||
|1. Wages , bonuses, allowances|||||
||764,217.25|2,630,407.18|2,759,581.18|635,043.25|
|and subsidies|||||
|3. Social insurance||91,473.54|91,473.54||
|Including: Medical|||||
|||74,268.56|74,268.56||
|insurance|||||
|Work injury|||||
|||3,773.80|3,773.80||
|insurance|||||
|Maternity|||||
|||13,431.18|13,431.18||
|insurance|||||
|4. Housing accumulation|||||
|||241,319.36|241,319.36||
|fund|||||
|5. Labor union|||||
|expenditure and|||||
||6,768.72|38,525.24|38,589.36|6,704.60|
|personnel education|||||
|expense|||||
|Total|770,985.97|3,001,725.32|3,130,963.44|641,747.85|

 (3) Defined contribution plans
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening balance||Decreased|Ending balance|
|||period|||
|1. Basic endowment|||||
|||216,041.04|216,041.04||
|insurance|||||
|2. Unemployment|||||
|||10,060.87|10,060.87||
|insurance|||||
|Total||226,101.91|226,101.91||

Other explanation:
Nil
38. Tax payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

||||
|-|-|-|
|Value-added tax|331,800.99|988,097.16|
|Enterprise income tax||506,828.92|
|Individual income tax|27,133.26|10,263.10|
|Urban maintenance and construction tax|11,817.23|11,499.17|
|House property tax|45,070.60|45,070.60|
|Educational surtax|3,622.00|3,394.82|
|Total|419,444.08|1,565,153.77|

 Other explanation:
Nil
39. Interest payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Interest overdue without paid:
In RMB
||||
|-|-|-|
|Borrower|Amount overdue|Reasons|
|Total|0.00|--|

Other explanation:
Nil
40. Dividends payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
41. Other payable
(1) Classification of other payable according to nature of account
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|With 1 year (including 1 year)|165,800.00|1,150,299.74|
|1-2 years|913,734.06|1,361,511.50|
|2-3 years|2,530,934.97|2,530,934.97|
|Over 3 years|15,345,541.11|15,354,541.11|

|||
|-|-|
|Total|18,956,010.14|

 (2) Significant other payable with over one year age
In RMB
||||
|-|-|-|
|Item|Ending balance|Reasons of un-paid or carry-over|
|Custodian and common benefit debts|9,511,005.85||
|Guosheng Energy|6,500,000.00|Interest-free loans|
|Total|16,011,005.85|--|

Other explanation
Nil
42. Liability holding ready for sold
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
43. Non-current liability due within one year
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
44. Other current liability
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Changes of short-term bond payable:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Accrual|Premium/|||
||Face|Release|Bond|Issuing|Opening|Issued in|interest|discount|Paid in|Ending|
|Bond|||||||||||
||value|date|period|amount|balance|the Period|by face|amortizati|the Period|balance|
||||||||value|on|||
|Total|--|--|--|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

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

Explanation:
Nil
Other explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

(2) Changes of bonds payable (not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability)
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total|--|--|--|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

 (3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Period-begin||Increase during the period||Decreased||Period-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||
|Total|0|0.00|0|0.00|0|0.00|0|0.00|

 Basis for financial liability classification for other financial instrument
Nil
Other explanation
Nil
47. Long-term account payable
(1) Listed by nature
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
48. Long-term employee payable
(1) Long-term employee payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

Scheme assets:
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

Net liability (assts) of the defined benefit plans
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty: Nil
Major actuarial assumption and sensitivity analysis:
Nil
Other explanation:
Nil
49. Special payable
In RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase during the|Decreased|Ending balance|Causes|

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

 Other explanation:
Nil
50. Accrued liability
In RMB
|||||
|-|-|-|-|
|Item|Ending balance|Opening balance|Causes|

Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the||||
|Item|Opening balance||Decreased|Ending balance|Causes|
|||period||||
|Total||0.00|0.00||--|

 Item with government grants involved:
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount reckoned||||
|||New grants in the||||Assets-related/inc|
|Item|Opening balance||in non-operation|Other changes|Ending balance||
|||Period||||ome related|
||||revenue||||
|Total||0.00|0.00|0.00||--|

 Other explanation:
Nil
52. Other non-current liability
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|

Other explanation:
Nil
53. Share capital
In RMB
||||||||
|-|-|-|-|-|-|-|
||Change during the period(+,-)||||||
|Opening|||||||
||New shares||Shares|||Ending balance|
|balance||Bonus share||Other|Subtotal||
||issued||transferred||||

|||||
|-|-|-|-|
|||from capital||
|||reserve||
|Total shares|551,347,947.00||551,347,947.00|

 Other explanation:
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Period-begin||Increase during the period||Decreased||Period-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||
|Total|0||0|0.00|0|0.00|0||

Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital reserve
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening balance||Decreased|Ending balance|
|||period|||
|Other capital reserve|627,834,297.85|||627,834,297.85|
|1. Debt restructuring|||||
||482,580,588.23|||482,580,588.23|
|income|||||
|2. Other|145,253,709.62|||145,253,709.62|
|Total|627,834,297.85|0.00|0.00|627,834,297.85|

 Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening balance||Decreased|Ending balance|
|||period|||
|Total||0.00|0.00||

Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Current amount||||||
||||Less: written in|||||
|||Account|other|||||
||Opening||comprehensive||||Ending|
|Item|||||Belong to|Belong to||
|||before|income in|||||
||balance|||Less : income|parent|minority|balance|
||||previous period|||||
|||income tax in||tax expense|company after|shareholders||
||||and carried||tax|after tax||
|||the period|forward to gains|||||
||||and losses in|||||
||||current period|||||
|Total other comprehensive income||0.00|0.00|0.00||||

Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognization adjustment for the arbitraged items:
Nil
58. Special reserves
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening balance||Decreased|Ending balance|
|||period|||
|Total||0.00|0.00||

Other explanation, including changes and reasons for changes:
Nil
59. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening balance||Decreased|Ending balance|
|||period|||
|Statutory surplus reserve|32,673,227.01|||32,673,227.01|
|Total|32,673,227.01|0.00|0.00|32,673,227.01|

Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
||||
|-|-|-|
|Item|Current period|Last period|
|Retained profit at period-end before adjustment|-1,197,486,788.28|-1,200,090,425.75|
|Retained profit at period-begin after adjustment|-1,197,486,788.28|-1,200,090,425.75|
|Add: net profit attributable to shareholders ofparent company for this year|||
||-1,691,378.44|2,603,637.47|
|Retained profit at period-end|-1,199,178,166.72|-1,197,486,788.28|

 Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit at period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operating income and operating cost
In RMB
||||||
|-|-|-|-|-|
||Current amount||Last amount||
|Item|||||
||Income|Cost|Income|Cost|
|Main business|45,537,967.15|43,692,197.03|62,897,880.97|58,317,911.87|
|Other business|3,391,709.12|1,994,075.80|2,876,132.36|2,003,321.50|
|Total|48,929,676.27|45,686,272.83|65,774,013.33|60,321,233.37|

 62. Business tax and surcharge
In RMB
||||||
|-|-|-|-|-|
|Item||Current amount||Last amount|
|Urban maintenance and construction tax||45,604.48||24,281.09|
|Educational surtax||32,574.63||17,077.44|
|Stamp tax||13,173.94|||
|Business tax||||29,766.86|
|Total|91,353.05||71,125.39||

63. Sales expense
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Employee compensation|1,126,682.80|1,642,059.12|
|Development cost for new products|4,122.39|378,545.62|
|Market promotion costs|19,287.44|327,449.25|
|Rental property charges|180,047.47|324,646.28|
|Travel expenses|218,695.40|266,170.42|
|Net work sales costs|476,089.26||
|Other|443,777.11|289,311.67|
|Total|2,468,701.87|3,228,182.36|

 Other explanation:
Nil
64. Administration expense
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Salary|2,079,149.94|1,310,472.25|
|Rental and property charges|702,602.38|592,893.94|
|Other|557,779.18|445,273.88|
|Total|3,339,531.50|2,348,640.07|

 Other explanation:
Nil
65. Financial expense
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Interest income|-213,713.97|-551,941.52|
|Commission charge etc.|12,149.06|7,415.97|
|Total|-201,564.91|-544,525.55|

 Other explanation:
Nil
66. Loss from Assets depreciation
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

||||
|-|-|-|
|I. Bad debt losses|-47,271.09|-24,888.28|
|Total|-47,271.09|-24,888.28|

 Other explanation:
Nil
67. Changes in fair value gains
In RMB
||||
|-|-|-|
|Changes resources|Current amount|Last amount|

Other explanation:
Nil
68. Investment income
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

Other explanation:
Nil
69. Other income
In RMB
||||
|-|-|-|
|Resources|Current amount|Last amount|

70. Non-operation revenue
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into|
|Item|Current amount|Last amount|non-recurring gains/losses in|
||||the period|
|Other|291,710.58|342,089.82|291,710.58|
|Total|291,710.58|342,089.82|291,710.58|

 Government grants reckoned into current gains/losses:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether the|||||
|||||impact of|||||
||||||Whether|||Assets|
||Issuing|||subsidies on||Amount of|Amount of||
|Item||Issuing cause|Property type||special|||related/Incom|
||subject|||the current||this period|last period||
||||||subsidies|||e related|
|||||profit and|||||
|||||loss|||||

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

 Other explanation:
Nil
71. Non-operating expenditure
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into|
|Item|Current amount|Last amount|non-recurring gains/losses in|
||||the period|
|Other||1,509.00||
|Total||1,509.00|0.00|

 Other explanation:
Nil
72. Income tax expense
(1) Income tax expense
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Current income tax||195,895.21|
|Deferred income tax|11,629.41||
|Total|11,629.41|195,895.21|

 (2) Adjustment on accounting profit and income tax expenses
In RMB
|||
|-|-|
|Item|Current amount|
|Total profit|-2,115,636.40|
|Impact of deductible temporary difference and deductible lossfor the deferred income tax recognized in previous year||
||11,629.41|
|income tax expenses|11,629.41|

 Other explanation
The income tax expenses: declined of the bad debt provision for deductible temporary difference last year, than the “deferred income tax” decreased and “income tax– deferred income tax” increasd in the period
73. Other comprehensive income
Found more in Note 57.
74. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Interest and Rent and utilities etc.|1,603,116.82|1,626,821.50|
|Other Current money|721,181.20|2,057,230.85|
|Total|2,324,298.02|3,684,052.35|

 Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Period expenses, operation costs and|||
||5,580,059.48|4,991,881.79|
|common benefit debts paid|||
|Total|5,580,059.48|4,991,881.79|

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

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

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

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

Explanation on cash paid related with financing activities:
Nil
75. 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 ofoperation activities:||||
|||--|--|
|Net profit|-2,127,265.81||518,931.58|
|Add: Assets impairment provision||-47,271.09|-24,888.28|
|Depreciation of fixed assets, consumptionof oil assets and depreciation of productivebiology assets||||
|||145,136.97|81,421.30|
|Amortization of intangible assets||376,500.00|376,500.00|
|Financial expense(gain listed with “-”)|||-544,525.55|
|Decrease of deferred income taxasset( (increase is listed with “-”)||||
|||11,629.41||
|Decrease of inventory (increase is listedwith “-”)||||
|||-2,966,733.68|-6,498,474.09|
|Decrease of operating receivable accounts(increase is listed with “-”)||||
|||1,556,935.35|-11,317,496.10|
|Increase of operating payable accounts(decrease is listed with “-”)||||
|||-5,754,973.38|12,659,916.36|
|Net cash flow arising from operatingactivities|-8,806,042.23||-4,748,614.78|
|2. Material investment and financing notinvolved in cash flow||||
|||--|--|
|3. Net change of cash and cashequivalents:||||
|||--|--|

||||
|-|-|-|
|Balance of cash at period end|15,177,305.48|19,043,626.88|
|Less: Balance of cash at year-begin|24,015,287.71|26,752,065.66|
|Net increasing of cash and cash|-8,837,982.23||
|equivalents|||

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

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

Other explanation:
Nil
(4) Constitution of cash and cash equivalent:
In RMB
||||
|-|-|-|
|Item|Ending balance|Opening balance|
|Ⅰ. Cash|15,177,305.48|24,015,287.71|
|Including: Cash on hand|77,429.04|132,652.06|
|Bank deposit available for payment at|||
||15,099,876.44|23,768,774.82|
|any time|||
|Other monetary fund available for|||
|||113,860.83|
|payment at any time|||
|Ⅲ. Balance of cash and cash equivalent at|15,177,305.48|24,015,287.71|
|period-end|||

Other explanation:
Nil
76. Notes of changes ofowners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
77. Assets with ownership or use right restricted
In RMB
||||
|-|-|-|
|Item|Ending book value|Restriction reasons|
|Total|0.00|--|

Other explanation:
Nil
78. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Ending foreign currency||Ending RMB balance|
|Item||Convert rate||
||balance||converted|
|HKD|1.53|0.8952|1.37|

 Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity, disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping currency changed, explain reasons
□ Applicable√ Not applicable
79. Hedging
Disclosed hedging items and relevant hedging instrument based onhedging’s category, disclosed qualitative and quantitative information for the arbitrage risks:
Nil
80. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income of|Net profit of|
|||||||Standard to|||
||Time point|Cost of|Ratio of|Acquired|||acquiree from|acquiree from|
||||||Purchasing|determine the|||
|Acquiree|for equity|equity|equity|way Equity|||purchasing|purchasing|
||||||date|purchasing|||
||obtained|obtained|obtained|obtained way|||date to|date to|
|||||||date|||
||||||||period-end|period-end|

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

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

 Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not
□Yes√No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise 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:
Nil
(2) Combination cost
||
|-|
|Combination cost|

Explanation on contingent consideration and its changes:
Nil
Other explanation:
Nil
(3) Assets and liability of the combined party on combination date
|||
|-|-|
|On purchasing date|At end of last period|

Contingent liability of the combined party bear during combination:
Nil
Other explanation:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listed company and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction
Nil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes√ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes√ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information Nil
6. Other
During the reporting period, there is no change in the scope of consolidation.
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main operation|||Share-holding ratio|||
|Subsidiary||Registered place|Business nature|||Acquired way|
||place|||Directly|Indirectly||
|Shenzhen|||||||
|Emmelle|||Bicycle and spare||||
||Shenzhen|Shenzhen||70.00%||Investment|
|Industrial Co.,|||parts distribution||||
|Ltd.|||||||

Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights
Nil
Controlling basis for the structuring entity included in consolidated range
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
(2) Important non-wholly-owned subsidiary
In RMB
||||||
|-|-|-|-|-|
||||Dividend announced to||
||Share-holding ratio of|Gains/losses attributable||Ending equity of|
|Subsidiary|||distribute for minority in||
||minority|to minority in the Period||minority|
||||the Period||
|Shenzhen Emmelle|||||
||30.00%|-435,887.37||2,477,240.10|
|Industrial Co., Ltd.|||||

Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Ending balance||||||Opening balance||||||
|Subsidia||Non-curr|||Non-curr|||Non-curr|||Non-curr||
||Current||Totalassets|Current||Total|Current||Total|Current||Total|
|ry||ent|||ent|||ent|||ent||
||assets|||liability||liability|assets||assets|liability||liability|
|||assets|||liability|||assets|||liability||
|Shenzhe|||||||||||||
|n|||||||||||||
|Emmelle|37,636,1|839,021.|38,475,1|30,217,6||30,217,6|42,841,4|845,466.|43,686,9|33,976,5||33,976,5|
||||||0.00||||||0.00||
|Industria|39.70|27|60.97|93.96||93.96|78.93|81|45.74|20.84||20.84|
|l Co.,|||||||||||||
|Ltd.|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current amount||||Last amount||||
|||||Cash flow||||Cash flow|
||||Total||||Total||
|Subsidiary|OperationIncome|||from|Operation|||from|
|||Net profit|comprehensi|||Net profit|comprehensi||
|||||operation|Income|||operation|
||||ve income||||ve income||
|||||activity||||activity|
|Shenzhen|46,225,592.7|-1,452,957.89|-1,452,957.89|-9,054,161.55|63,060,684.1|235,250.98|235,250.98|-7,627,354.73|

||||
|-|-|-|
|Emmelle|7|3|
|Industrial|||
|Co., Ltd.|||

Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial statement
Nil
Other explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact onminority’s interest andowners’ equity attributable to parent company
In RMB
 Other explanation
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Share-holding ratio||Accounting|
|||||||treatment on|
||Main operation|||||investment for|
|Name||Registered place|Business nature||||
||place|||Directly|Indirectly|joint venture and|
|||||||cooperative|
|||||||enterprise|

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

 Other explanation
(3) Main financial information of the important cooperative enterprise
|||
|-|-|
|Closing balance/current amount|opening balance /last period amount|

 Other explanation
(4) Financial summary for un-important joint venture or cooperative enterprise
In RMB
||||
|-|-|-|
||Ending balance /Current amount|Opening balance /Last amount|
|Joint venture|--|--|
|Total numbers measured by share-holding|||
||--|--|
|ratio|||
|Cooperative enterprise|--|--|
|Total numbers measured by share-holding|||
||--|--|
|ratio|||

Other explanation
(5) Assets transfer ability has major restriction from joint venture or cooperative enterprise
(6) Excess losses from joint venture or cooperative enterprise
In RMB
|||||
|-|-|-|-|
|||Un-confirmed losses not||
||Cumulative un-confirmed||Cumulative un-confirmed|
|Name||recognized in the Period (or net||
||losses||losses at period-end|
|||profit enjoyed in the Period)||

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

|||
|-|-|
|Directly|Indirectly|

 Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classification:
Other explanation
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation:
6. Other
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary funds, trade receivables, other receivables, trade payables, other payables, etc. details of these financial instruments are disclosed in the relevant notes. Risks relating to these financial instruments and risk management policies adopted by the Company to minimize these risks are detailed as follows. Management of the Company manages and monitors the risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of theCompany’s risk management is to balance the risk and income, reduce the negative risk impact of operating performance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, the Company has established risk management policies to identify and analyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews these policies and related internal control system to adapt to market development and change of operating activities of the Company. The major risks arising from theCompany’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation of another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since the bank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant credit risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financial position of debtors, their credit records, market conditions and other factors, makes assessment ondebtors’ credit quality and sets relevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum of carrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed to credit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash or
other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by the
management, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Company monitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bring shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares. The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30 June 2017, the gearing ratio of the Company was69.04% (31 December 2016:68.05%)
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|||||
|(I) Financial assets|||||
|measured at fair value|||||
|and changes accounted||||0.00|
|in the current profits|||||
|and losses|||||
|1. Transaction financial|||||
|||||0.00|
|assets|||||
|(1) Investment in debt|||||
|||||0.00|
|instruments|||||
|(2) Investment in equity|||||
|||||0.00|
|instruments|||||
|(3) Derivative financial|||||
|||||0.00|
|assets|||||
|2. Financial assets|||||
|appointed to measure at|||||
|fair value and changes||||0.00|
|accounted in the current|||||
|profits and losses|||||
|(1) Investment in debt|||||
|||||0.00|
|instruments|||||

|||
|-|-|
|(2) Investment in equity||
||0.00|
|instruments||
|(II) Financial assets||
||0.00|
|available for sale||
|(1) Investment in debt||
||0.00|
|instruments||
|(2) Investment in equity||
||0.00|
|instruments||
|(3) Other|0.00|
|(III) Investment real||
||0.00|
|estate||
|1. Rental land use rights|0.00|
|2. Rental buildings|0.00|
|3. Land use rights||
|holding and preparing to|0.00|
|transfer after add value||
|(IV) Biological assets|0.00|
|1. Consumption||
||0.00|
|biological assets||
|2. Productive biological||
||0.00|
|assets||
|Total assets||
|continuously measured|0.00|
|by fair value||
|(V) Transaction||
||0.00|
|financial liabilities||
|Among them: issue of||
||0.00|
|transaction bonds||
|Derivative||
||0.00|
|financial liabilities||
|Other|0.00|
|(VI) Financial liabilities||
|appointed to measure at||
|fair value and changes|0.00|
|accounted in the current||
|profits and losses||
|Total liabilities||
|continuously measured|0.00|
|by fair value||

||||||
|-|-|-|-|-|
|II. Non-sustaining|||||
||--|--|--|--|
|measured by fair value|||||
|(I) Assets held for sale||||0.00|
|Total assets|||||
|non-continuously||||0.00|
|measured by fair value|||||
|Total liabilities|||||
|non-continuously||||0.00|
|measured by fair value|||||

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
|||||||
|-|-|-|-|-|-|
|||||Share-holding ratio||
||||||Voting right ratio on|
|Parent company|Registration place|Business nature|Registered capital|on the enterprise for||
||||||the enterprise|
|||||parent company||

Explanation on parent company of the enterprise
We do not have parent company presently
Ultimate controlling party: Nil
Other explanation:
At the end of last year, the parent company of the Company, Shenzhen Guosheng Energy Investment& Development Co., Ltd., issued a document to the Company on February 20, 2017 to give up the status as the actual controller, this company held only11.52% of the shares of the Company and could not control or govern the Company's personnel, finance, business and other matters, and also did not participate in the Company's business operations, nor nominated members of the board. Up to the current reporting period, Shenzhen Guosheng Energy Investment& Development Co., Ltd. is only the largest shareholder of the Company.
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Cooperative enterprise and joint venture
Found more in Note IX-3
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious period
|||
|-|-|
|Name|Relationship|

Other explanation
Nil
4. Other related party
|||
|-|-|
|Other related party|Relationship with the Enterprise|
|Shenzhen Guosheng Energy Investment Development Co., Ltd.|The largest shareholder|

Other explanation
The Shenzhen Guosheng Energy Investment Development Co., Ltd. holds11.52% equity of the Company, found more in 1. Parent
company in above mentioned
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
|||||||
|-|-|-|-|-|-|
||||Approved transaction|Whether more than||
|Related party|Content|Current amount|||Last amount|
||||amount|the transaction amount||

Goods sold/labor service providing
In RMB
|||||
|-|-|-|-|
|Related party|Content|Current amount|Last amount|

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

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

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

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

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

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

 Explanation on related guarantee
Nil
(5) Borrowed funds of related party
In RMB
||||||
|-|-|-|-|-|
|Related party|Borrowed funds|Starting date|Maturity date|Note|
|Borrowing|||||
|Lending|||||

(6) Assets transfer and debt restructuring of related party
In RMB
|||||
|-|-|-|-|
|Related party|Transaction content|Current amount|Last amount|

 (7) Remuneration of key manager
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|
|Remuneration of key manager|1,091,420.00|732,061.00|

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

 (2) Payable item
In RMB
|||||
|-|-|-|-|
|Item|Related party|Ending book balance|Opening book balance|
||Shenzhen Guosheng Energy|||
|Other account payable|Investment Development Co.,|6,500,000.00|6,500,000.00|
||Ltd.|||

7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□ Applicable√ Not applicable
2. Share-based payment settled by equity
□ Applicable√ Not applicable
3. Share-based payment settled by cash
□ Applicable√ Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed.
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
|||||
|-|-|-|-|
|||Impact on financial status and|Reasons on un-able to estimated|
|Item|Content|||
|||operation results|the impact number|

 2. Profit distribution
In RMB 3. Sales return
Nil
4. Other events after balance sheet date
On June 19, 2017, the company convened the second extraordinary general meeting of shareholders in 2017 which approved the
proposal on this non-public offering of shares. Pursuant to the subscription agreement for the non-public offering of shares, the four
subscribers should respectively pay1% of the total amount of the subscription to the Company within 30 working days from the date of approval by the shareholders' general meeting as the performance bond. The Company has received the performance bond of RMB 8 million from the four subscribers after the balance sheet date.
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
|||||
|-|-|-|-|
|||Impact items of statement||
|Content|Treatment procedures||Cumulative impacted number|
|||during a comparison||

(2) Prospective application
||||
|-|-|-|
|||Reasons for prospective application|
|Accounting error correction|Approval procedures||
|||adopted|

2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Discontinued|
|||||Income tax||operations profit|
|Item|Revenue|Expenses|Total profit||Net profit||
|||||expenses||attributable to|
|||||||owners of parent|

||
|-|
|company|

 Other explanation
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
In RMB
||||
|-|-|-|
|Item|Offset between segments|Total|

(3) The company has no reportable segments, or unable to disclose total assts and total liability for reportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence oninvestor’s decision
Nil
8. Other
1. Instructions for continuing operations
On 11th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012 according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King& Wood (Shenzhen) Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. Subsequently, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen IntermediatePeople’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen IntermediatePeople’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed
down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization. The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment.
2. Proposed non-public issue of shares for purpose of assets acquisition in 2016
In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire material assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board of the Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking into account the conditions of capital market and actual conditions of the Company, the Board of the Company considered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares and the Plan on Non-public Issue of A shares in 2016 (amended) in February 2017. According to the amended plan, the total proceeds to be raised from this non-public issue are estimated not to exceed RMB 0.8 billion after deduction of issuance expense. Among which, RMB 660 million is planned to be used in the “online and offline marketing network platform construction and upgrading project”, and RMB 140 million is planned to be used in the “R& D center construction project”. For additional details, please refer to the announcement issued by the Board on behalf of the Company. On June 19, 2017, the company convened the second extraordinary general meeting of shareholders in 2017 which approved the aforesaid proposal on non-public offering of shares.
As of the date the finacnial statement reported, the above said non-public offering should be approved in CSRC
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ending balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Types|||||Book||||||
|||||Accrual|||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
|||||ratio|||||ratio||
|Total|0.00|0.00%|0.00|0.00%||0.00|0.00%|0.00|0.00%||

Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable√ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
□ Applicable√ Not applicable
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:
Nil
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0.00 Yuan; collected or reversed 0.00 Yuan.
Major bad debt provision reversal or collected in the Period
In RMB
||||
|-|-|-|
|Company|Amount reversal or collected|Collection way|
|Total|0.00|--|

Nil
(3) Receivables actually written-off during the reporting period
In RMB
|||
|-|-|
|Item|Amount written off|

Written-off for the major receivable
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of|||Procedures|Arising from related|
|Company||Amount written off|Reason for write-off|||
||receivables|||implemented|transactions|
|Total|--|0.00|--|--|--|

 Explanation for write-off of receivables
Nil
(4) Top 5 receivables at ending balance by arrears party
Nil
(5) Receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by receivable transfer and continuous involvement
Nil
Other explanation:
Nil
2. Other accounts receivable
(1) Classification
In RMB
||||
|-|-|-|
|Type|Ending balance|Opening balance|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
||||||Book||||||
|||||Accrualratio|||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
||||||||||ratio||
|Other account|||||||||||
|receivable with|||||||||||
|single major amount|6,785,035.19||||6,785,035|9,113,6||||9,113,689.7|
|||96.43%|||||97.32%||||
|and withdrawal bad|||||.19|89.74||||4|
|debt provision for|||||||||||
|single item|||||||||||
|Other receivables|||||||||||
|with bad debt|251,350.00||||250,596.5|251,150|||||
|||3.57%|753.45|0.30%|||2.68%|753.45|0.30%|250,396.55|
|provision accrual by|||||5|.00|||||
|credit portfolio|||||||||||
||7,036,385.19||||7,035,631.74|9,364,8||||9,364,086.29|
|Total||100.00%|753.45|0.01%|||100.00%|753.45|0.01%||
|||||||39.74|||||

 Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance||||||
|Other receivables (unit)|||||||
|||Other receivables|Provision for bad deb|t|Accrue ratio|Accrue reason|
|Shenzhen Emmelle||||||子公司往来款合并报|
|||6,785,035.19|0.0|0|0.00%||
|Industrial Co., Ltd.||||||表抵消项目|
|Total|6,785,035.19||||--|--|

In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Ending balance|||
|Age||||
||Other receivable|bad debts provision|Accrual ratio|
|Within one year||||
|Within one year|68,588.00|205.16|0.30%|
|Subtotal of within one year|68,588.00|205.16|0.30%|
|1-2 year|182,762.00|548.29|0.30%|
|Total|251,350.00|753.45|0.30%|

 Explanations on combination determine:
Nil
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
深圳中华自行车(集团)股份有限公司2017年半年度财务报告
□ Applicable√ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0 Yuan; collected or reversed 0 Yuan.
Major bad debt provision reversal or collected in the Period
In RMB
||||
|-|-|-|
|Company|Amount reversal or collected|Collection way|
|Total|0.00|--|

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

Written-off for the major other receivable:
In RMB
|||||||
|-|-|-|-|-|-|
||Nature of other|||Procedures|Arising from related|
|Company||Amount written off|Reason for write-off|||
||receivables|||implemented|transactions|
|Total|--|0.00|--|--|--|

 Explanation for write-off of other receivables:
Nil
(4) Other receivables by nature
In RMB
||||
|-|-|-|
|Nature|Ending book balance|Opening book balance|
|Current money|6,785,035.19|9,113,689.74|
|Margin or deposit|239,950.00|239,750.00|
|Equipment amount|11,400.00|11,400.00|
|Total|7,036,385.19|9,364,839.74|

 (5) Top 5 other receivables at ending balance by arrears party
In RMB
|||||||
|-|-|-|-|-|-|
||||Book age|Ratio in total||
|Company|Nature|Ending balance|Book age|ending balance of||
|||||other receivables||
|Shenzhen Emmelle|Current money|6,785,035.19|Within one year|96.43%|0.00|

|||||||
|-|-|-|-|-|-|
|Industrial Co., Ltd.||||||
|Shenzhen Materials||||||
||Margin or deposit|135,723.00|0-2 year|1.93%|407.17|
|Group Co., Ltd.||||||
|Shenzhen||||||
|Anjingheng|Margin or deposit|90,100.00|1-2 year|1.28%|270.30|
|Industrial Co. Ltd.||||||
|Shenzhen||||||
|Baifanghe Property|Margin or deposit|13,627.00|1-2 year|0.19%|40.88|
|Co., Ltd.||||||
|Shenzhen||||||
|Hongkang||||||
||Equipment|||||
|Instrument||11,400.00|1-2 year|0.16%|34.20|
||amount|||||
|Technology Co.,||||||
|Ltd.||||||
|Total|--|7,035,885.19|--|99.99%|752.55|

 (6) Account receivable with government subsidy involved
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Company|Item|Ending balance|Ending book age||
|||||for money collected|
|Total|--|0.00|--|--|

Nil
(7) Other receivable derecognition due to transfer of financial assets
Nil
(8) Assets and liability resulted by other receivable transfer and continuous involvement
Nil
Other explanation:
Nil
3. Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Opening balance|||
|Item|||||||
||Book balance|Impairment|Book value|Book balance|Impairment|Book value|
|Investment for|||||||
||1,400,000.00|1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|
|subsidiary|||||||

||||||||
|-|-|-|-|-|-|-|
|Total|1,400,000.00|1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|

 (1) Investment for subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Ending balance of|
||||||Impairment||
|The invested entity|Opening balance|Increased|Decreased|Ending balance||impairment|
||||||accrual||
|||||||provision|
|Shenzhen|||||||
|Emmelle Industrial|1,400,000.00|0.00|0.00|1,400,000.00|0.00|1,389,620.27|
|Co., Ltd.|||||||
|Total|1,400,000.00|0.00|0.00|1,400,000.00|0.00|1,389,620.27|

 (2) Investment for associates and joint venture
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||+,-||||||||||
||||||||||||Ending|
|||||Investment gainsrecognized underequity|Other||Cashdividendor profitannounced toissued|||||
||||||||||||balance|
|||Additiona|||comprehe|||||||
||Opening|||||Other||||Ending|of|
|Company||l|Capital||nsive|||Impairme||||
||balance|||||equity|||Other|balance|impairme|
|||investmen|reduction||income|||nt accrual||||
|||||||change|||||nt|
|||t|||adjustmen|||||||
||||||||||||provision|
||||||t|||||||
|I. Joint venture||||||||||||
|Subtotal|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|II. Associated enterprise||||||||||||
|Total||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|||

(3) Other explanation
Nil
4. Operating income and cost
In RMB
||||||
|-|-|-|-|-|
||Current amount||Last amount||
|Item|||||
||Income|Cost|Income|Cost|
|Other business|3,228,905.96|1,994,075.80|3,476,770.26|2,092,043.56|
|Total|3,228,905.96|1,994,075.80|3,476,770.26|2,092,043.56|

Other explanation:
Nil
5. Investment gains
In RMB
||||
|-|-|-|
|Item|Current amount|Last amount|

6. Other
Supplementary information to statement of cash flow
||||||
|-|-|-|-|-|
|Item||This Period||Last Period|
|I. Net profit adjusted to cash flow of operation activities:|||||
|Net profit|-674,307.92||283,680.60||
|Add: Assets impairment provision|-||-||
|Depreciation of fixed assets, consumption of oil assets and|118,380.84||53,177.68||
|depreciation of productive biology assets|||||
|Amortization of intangible assets|376,500.00||376,500.00||
|Amortization of long-term deferred expenses|-||-||
|Loss from disposal of fixed assets, intangible assets and|-||-||
|other long-term assets(gain is listed with “-”)|||||
|Loss of disposing fixed assets(gain is listed with “-”)|-||-||
|Loss from change of fair value (gain is listed with “-”)|-||-||
|Financial expenses (gain is listed with “-”)|-||-||
|Investment loss (gain is listed with “-”)|-||-||
|Decrease of deferred income tax asset( (increase is listed|-||-||
|with “-”)|||||
|Increase of deferred income tax liability (decrease is listed|-||-||
|with “-”)|||||
|Decrease of inventory (increase is listed with “-”)|-||-||
|Decrease of operating receivable accounts (increase is listed|2,003,606.92||2,435,690.70||
|with “-”)|||||
|Increase of operating payable accounts (decrease is listed|-1,576,060.52||-270,309.03||
|with “-”)|||||
|Other|-||||
|Net cash flow arising from operating activities|248,119.32||2,878,739.95||
|II. Material investment and financing not involved in cash|||||
|flow:|||||

||||||
|-|-|-|-|-|
|Item||This Period||Last Period|
|Conversion of debt into capital|-||-||
|Switching Company bonds due within one year|-||-||
|Financing lease of fixed assets|-||-||
|III. Net change of cash and cash equivalents:|-||-||
|Balance of cash at period end|1,391,537.61||1,118,850.04||
|Less: Balance of cash at period -begin|1,143,418.29||1,199,934.09||
|Add: Balance of cash equivalent at period-end|-||-||
|Less: Balance of cash equivalent at period-begin|-||-||
|Net increasing of cash and cash equivalents|248,119.32||-81,084.05||

 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||Diluted EPS|
|||Basic EPS (RMB/Share)||
||||(RMB/Share)|
|Net profits belong to common stock||-0.0031|-0.0031|
||-12.51%|||
|stockholders of the Company||||
|Net profits belong to common stock||||
|stockholders of the Company after||||
||-14.07%|-0.0035|-0.0035|
|deducting nonrecurring gains and||||
|losses||||

3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
Section XI. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC in the report period.
3. English version of the Semi-Annual Report 2017.