深圳市特力(
集团)
股份有限公司
SHENZHEN TELLUS HOLDING CO., LTD
Semi-Annual Report2020
August 2020
Section I. Important Notice, Content and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completionof the whole contents.Fu Chunlong, Principal of the Company, Lou Hong, person in charge ofaccounting works and Liu Yuhong, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of Semi-AnnualReport 2020 is authentic, accurate and complete.All directors are attended the Board Meeting for report deliberation.Securities Times, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) are the media for information disclosure appointed by theCompany, all information under the name of the Company disclosed on theabove said media shall prevail. Concerning the forward-looking statements withfuture planning involved in the Report, they do not constitute a substantialcommitment for investors, and investors are advised to exercise caution ofinvestment risks.The Company has no plan of cash dividends carried out, bonus issued andcapitalizing of common reserves either.
Content
Section I. Important Notice, Content and Interpretation ..........................................................................................................................2
Section II Company Profile and Main Financial Indexes ...... 5
Section III. Summary of Company Business ...........................................................................................................................................9
Section IV Discussion and Analysis of the Operation ...... 13
Section V. Important Events .................................................................................................................................................................. 24
Section VI. Changes in Shares and Particulars about Shareholders ....................................................................................................... 38
Section VII. Preferred Stock .................................................................................................................................................................. 42
Section VIII. Convertible Bonds ........................................................................................................................................................... 43
Section IX. Directors, Supervisors and Senior Executives .................................................................................................................... 44
Section X. Corporate Bond .................................................................................................................................................................... 45
Section XI. Financial Report ................................................................................................................................................................. 46
Section XII. Documents Available for Reference ................................................................................................................................ 169
Interpretation
Items Refers to ContentsCSRC Refers to China Securities Regulatory CommissionSZ Exchange Refers to Shenzhen Stock ExchangeShenzhen Branch of SD&C Refers to
Shenzhen Branch of China Securities Depository & Clearing CorporationLimitedCompany, the Company, our Company,
Refers to Shenzhen Tellus Holding Co., Ltd.Reporting period, this reporting period, theyear
Refers to January to June of 2020Auto Industry and Trade Company Refers to Shenzhen Auto Industry and Trade CorporationZhongtian Company Refers to Shenzhen Zhongtian Industrial Co,. Ltd.Huari Company Refers to
Shenzhen Huari Toyota Auto Sales Co., Ltd, Shenzhen SDG Huari
Tellus Group
Auto
Enterprise Co., Ltd.Huari Toyota Refers to Shenzhen Huari Toyota Auto Sales Co., LtdZung Fu Tellus Refers to Shenzhen Zung Fu Tellus Auto Service Co., Ltd.Dongfeng Company Refers to Shenzhen Dongfeng Motor Co., Ltd.Tellus Starlight Refers to Anhui Tellus Starlight Jewelry Investment Co., Ltd.Tellus Starlight Jinzun Refers to Anhui Tellus Starlight Jinzun Jewelry Co., Ltd.Sichuan Channel Platform Company,Sichuan Jewelry Company
Refers to Sichuan Tellus Jewelry Tech. Co., Ltd.Xinglong Company Refers to Shenzhen Xinglong Machinery Mould Co., Ltd.SDG Refers to Shenzhen Special Development Group Co., Ltd.
Section II Company Profile and Main Financial IndexesI. Company profileShort form of the stock Tellus-A, Tellus-B Stock code 000025, 200025Stock exchange for listing Shenzhen Stock Exchange
Chinese)
深圳市特力(集团)股份有限公司
| Name of the Company (in |
| Short form of the Company |
(in Chinese if applicable)
特力A
Shenzhen Tellus Holding Co.,LtdLegal representative Fu Chunlong
II. Person/Way to contact
Secretary of the Board Rep. of security affairsName Qi Peng Sun BolunContact add.
3/F, Tellus Building, No.56, Shui Bei Er Road, LuohuDistrict, Shenzhen
3/F, Tellus Building, No.56, Shui Bei Er Road,Luohu District, ShenzhenTel. (0755) 88394183 (0755)83989339Fax. (0755)83989386 (0755)83989386E-mail ir@tellus.cn sunbl@tellus.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
√ Applicable □ Not applicable
Registrations address 3/F, Tellus Building, No.56, Shui Bei Er Road, Luohu District, ShenzhenCodes of the registration address 518001Office address 3/F, 4/F, Tellus Building, No.56, Shui Bei Er Road, Luohu District, ShenzhenCodes of the office address 518001Website www.tellus.cnE-mail ir@tellus.cn
Date for provisional notice inquiry on appointed
website (if applicable)
18 January 2020Index for provisional notice inquiry onappointed website (if applicable)
Juchao Website(www.cninfo.com.cn)
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2019IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Current period Same period of last year Changes over last yearOperating income (RMB) 197,051,790.29
278,268,739.33
-
Net profit attributable to shareholders ofthe listed Company (RMB)
25,594,985.78
| 29.19% | ||
44,779,948.60
-
| 42.84% |
Net profit attributable to shareholders ofthe listed Company after deductingnon-recurring gains and losses (RMB)
21,402,820.83
40,593,359.72
-
Net cash flow arising from operatingactivities (RMB)
17,306,322.20
| 47.28% | ||
27,434,059.30
-
| 36.92% |
Basic earnings per share (RMB/Share) 0.0594
0.1039
-
Diluted earnings per share (RMB/Share) 0.0594
| 42.83% | ||
0.1039
-
| 42.83% |
Weighted average ROE 1.99%
4.17%
-2.18%
Period-end Period-end of last year
Changes over period-
| end of |
last yearTotal assets (RMB) 1,576,055,264.66
1,645,782,144.03
-4.24%
Net assets attributable to shareholder oflisted Company (RMB)
1,278,455,832.36
1,270,965,296.02
0.59%
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMBItem Amount Note
business)
52,846.70
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s |
Mainly refers to the individualincome tax returns
tradable financi
| al liability and derivative financial liability and investment income from disposal of tradable financial assets, derivative financial liabilities, tradable financial liability, |
derivative financial liability and other debt investment
4,003,521.31
Income from financial products
Restoring of receivable a and contractual assets impairmentprovision that tested individually
599,201.43
Restoring of the bad debtprovisionOther non-operating income and expenditure except for theaforementioned items
917,047.44
Income from forfeiting the leasedeposit after the tenant returnsthe lease in advanceLess: Impact on income tax 858,601.74
Impact on minority shareholders’ equity (post-tax) 521,850.19
Total 4,192,164.95
--Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
The main business of the Company during the reporting period was auto sales, auto testing, maintenance andaccessories sales; resource assets management and jewelry service business.
(1) Automobile sales, testing, maintenance and maintenance and accessories sales: In the first half of 2020, the
automobile market was greatly affected by the epidemic, the overall consumption momentum was insufficient,and the consumption ability continued to weaken. Although there were government subsidy policies forpromotion, it has not completely recovered. FAW Toyota’s marketing strategy plus the “increased oil incident”affected the sales in the first half of the year, and the impact of low prices caused by government subsidies andauto shows still existed. During the reporting period, under adverse circumstances affected by the marketenvironment, the company carried out a variety of innovative marketing methods and other measures to increasemarketing efforts, and realized automobile sales revenue of 98,797,500 yuan, an increase of 24.67% over the sameperiod last year. The automobile inspection and maintenance and accessories sales revenue was 19,138,100 yuan,a decrease of 20.77% over the same period last year.
(2) Resources assets management: Due to the continuing impact of the epidemic in the first half of the year,
demand in the property leasing market has dropped significantly, the vacancy rate is expected to rise further, andthe rents will continue to decline. At the same time, with the rise of remote office mode, commercial office leasingis facing severe challenges. During the reporting period, in response to the sluggish market, on the one hand, thecompany improved the quality of old properties to consolidate the basic capabilities of commercial operations; onthe other hand, it increased the activity promotions, relied on professional institutions, promoted internalmanagement improvements, and combined the in-depth impact of the epidemic to promptly launch favourableinvestment policies to seize the market. During the reporting period, the company realized property rental andservices of 62,152,900 yuan, a decrease of 20.08% over the same period last year.
(3) Jewelry service business: Due to the uncertain impact of the epidemic, many merchants are lack of confidence,
some stop losses quickly, and some take a wait-and-see attitude on whether to continue to open stores. During thereporting period, in the face of the declining industry situation, on the one hand, the company took multiplemeasures to deeply explore the extension of the third-party comprehensive services of jewelry and innovatebusiness models; on the other hand, it strengthened risk monitoring to ensure the solid growth of state-ownedassets and investors increase. In order to reduce operating risks, the company reduced the business scale of theSichuan Channel Platform Company, coupled with the decline in the purchase quantity of jewelry customersaffected by the epidemic, in the first half of 2020, the cumulative operating revenue was 16,963,300 yuan, a
year-on-year decrease of 75,615,700 yuan, a decrease of 81.68% over the same period last year.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changesEquity assets
Book value of long-
to the investment income from shareholding enterprise.Fixed assets No major changeIntangible assets No major changeConstruction in progress
Book value of the construction in progress as of 30 June 2020 amounting to 74,408,200
Yuan, an increase of 26,753,800 Yuan over that of period-begin with 56.14% up. Mainly
due to the preliminary input for the project of Jinzuan Trading BuildingMonetary fund
Book value of the monetary fund as of 30 June 2020 amounting to 333,609,300 Yuan, a
decrease of 95,242,300 Yuan over that of period-begin with 22.21% down. Mainly
because pay the corporate income tax on equity transfer for year of 2019, and distributed
the cash dividend and purchasing financial products.Tradable financial assets
Book value of the tradable financial assets as of 30 June 2020 amounting to 115,128,600
Yuan, an increase of 54,642,000 Yuan over that of period-begin with 90.34% up. Mainly
because purchase more financial productsAccount receivable
Book value of account receivable as of 30 June 2020 amounting to 60,519,100 Yuan, a
decrease of 52,094,100 Yuan over that of period-begin with -46.26% down, mainly
because the wholesale credit for jewelry decreased in the periodAdvance payment
Book value of advance payment as of 30 June 2020 amounting to 17,088,100 Yuan, an
increase of 4,404,500 Yuan over that of period-begin with 34.73% up, mainly due to the
increase of safe purchasing prepaidOther non-current assets
Book value of other non-current assets as of 30 June 2020 amounting to 9,517,000 Yuan,
an increase of 2,627,900 Yuan over that of period-begin with 38.15% up, mainly due to
the payment of decoration for Tellus Building
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
(1) Owns rich property resources and provides stable business income
The output value of Shenzhen jewelry accounts for more than 70% of the national jewelry industry, andShuibei-Buxin area is the core gathering area of jewelry industry in Shenzhen, its output value accounts for morethan 70% of the jewelry industry in Shenzhen.We has formed the largest cluster of gold jewelry enterprises in thecountry, covering the entire industry chain including raw material procurement, production and processing, andwholesale sales, and the economic and strategic position and the core aggregation effects of this area in jewelryindustry have remained stable for many years.
According to the “13
thFive-Year” plan for urban renewal in Luohu District, Shenzhen, Shuibei-Buxin area will bebuilt into the jewellery fashion industrial zone of Luohu District, Shuibei area is the international jewellery artcenter and Buxin area is the jewellery intelligent high-end manufacturing center so as to form the Shuibei-Buxininternational jewellery eco-creative area. The company is the largest owner of the Tellus Gman Gold JewelleryIndustrial Park in Shuibei area, Tellus Shuibei Jewellery Building phase I has been put into use, and phase IIconstruction project has also been fully started. At the same time, as the largest owner of land parcels 04 & 05 inthe urban renewal unit planning project of Buxin industrial zone, the company will plan and construct aninnovative industrial project in line with the city, district and the Company’s overall strategic layout in Buxin areathrough the renovation method. The company will maintain the status of the largest owner of Shuibei and Buxinareas, and master the physical platform resource advantages of the core area of the jewelry industry.
At the same time, the Company has a lot of property resources in various areas of Shenzhen, on the basis ofmaintaining the stability of the original leasing business, the company will actively promote the improvement ofproperty quality and transform its old properties from the traditional method of simple lease to the direction ofproperty asset operation so as to fully enhance and tap the added value of the property brand, bring stable businessincome and cash flow to the company, and provide a solid foundation for the company’s long-term development.
(2) Make use of the advantages of status, build industrial platforms, and promote the development of the industry
In 2019, the release of the “Opinions of the State Council on Supporting Shenzhen to Build a Pioneering SocialistDemonstration Zone with Chinese Characteristics” and the approval of the “Pilot Implementation Plan forShenzhen Regional State-owned Enterprises’ Comprehensive Reform” have created an unprecedented opportunityfor Shenzhen. As a state-owned holding enterprise group in Shenzhen, Tellus Group has outstanding resourceadvantages.
This year, due to the COVID-19 and other unfavorable factors, the growth of the jewelry industry has continued toslow down, and the industry has continued to show a trend of bottom shocks and undergo deep integration andshuffle. Under such circumstances, the company’s identity advantages as a state-owned enterprise and a listedcompany are highlighted, it has good credit qualifications and credit endorsement ability and also has goodrelations with government departments and effective communication channels so that it can play the role of aplatform enterprise in the jewelry industry, aggregate the upstream and downstream of the jewelry industry chain,act as a bridge and bond among the government and the private jewelry enterprises, the overseas and the domesticsuppliers, and the distributors, integrate industry needs, solve industry pain points, and strive for various policysupports such as taxation, trade, and approval for industry enterprises, improve traditional model of the industry,
provide more comprehensive innovative services, promote the healthy development of the industry and achieve awin-win situation for all parties while achieving its own social responsibility and rewarding the company’sshareholders.
Section IV Discussion and Analysis of the OperationI. IntroductionIn the first half of 2020, the global spread of the novel coronavirus pneumonia epidemic severely hit internationalbusiness activities. The blockade and prevention and control measures of various countries have caused theeconomy to stagnate or even decline, and the prospects for recovery are not optimistic. In response to the impactof the epidemic on the economy, central banks have adopted the largest easing policies since the 2008 financialcrisis. According to the latest report of the World Bank, the global economy is expected to decline by 5.2% in2020. Under the impact of the novel coronavirus epidemic, China's economy is gradually recovering along thepath of "production recovery - confidence rebuilding - demand recovery". Investment in new infrastructure hasincreased, industrial production has gradually rebounded, PPI deflationary pressure has eased, and real estate,automobiles, and exports are bright. However, demand for non-consumer goods is still sluggish, and economicrecovery still needs time.In order to reduce the impact of the epidemic on the company, our company has actively implemented the "sixstability" and "six guarantees" spirits, fulfilled the responsibility of state-owned enterprises, reduced rents and feesof more than 25 million yuan, fully tapped the potential, strictly controlled various expenses, and made a goodoperational defense war in the first half of the year. During the reporting period, the Company achieved a businessrevenue of 197.0518 million yuan, which decrease by 81.2169 million yuan or 29.19% compared with 278.2687million yuan in the same period last year, revenue declined mainly because responding to the government’s callfor rent relief for tenants, the rental revenue decreased and as well as a decline in jewelry sales affected by theepidemic. Total profit amounted to 33.219 million yuan, which decrease by 17.8018 million yuan compared with
51.0208 million yuan in the same period last year; net profit attributable to parent company amounted to 25.595
million yuan, which decrease by 19.1849 million yuan compared with 44.7799 million yuan in the same periodlast year.
II. Main business analysisSee the “I-Introduction” in “Discussion and Analysis of the Operation”Change of main financial data on a y-o-y basis
In RMBCurrent period Same period of last year y-o-y changes (+,-) Reasons
Operation revenue 197,051,790.29
278,268,739.33
-29.19%
| Responding to the |
government’
by the epidemicOperation costs 154,774,587.52
| in jewelry sales affected | ||
210,494,012.42
-26.47%
| Cost reduced due to the decline of jewelry sales |
for epidemicSales expense 6,776,144.54
9,358,514.29
-27.59%
Management expense 17,202,000.61
16,878,629.26
1.92%
Financial expense -2,202,150.55
3,757,775.76
Interest
on a y-o-y basisIncome tax expense 6,448,306.06
| expenses declined due to the decrease of bank loans | ||
6,038,256.76
6.79%
Net cash flow arisingfrom operation activities
17,306,322.20
27,434,059.30
-36.92%
1.
| Responding to the |
government’
rent
| relief for tenants; 2. cash flow paid for enterprise income tax |
declinedNet cash flow arisingfrom investmentactivities
-88,258,570.72
54,510,161.97
| 1. purchasing of financial products increased on a |
y-o-
Jinzuan Tr
| ading Building |
project increased
Net cash flow arisingfrom financing activities
-24,778,202.09
-25,551,300.64
| At same period last year, Zhongtain Company return the borrowings of projects, the cash |
out-
y-o-
| y basis, and there |
was no s
occurred in the yearNet increase of cash andcash equivalent
-95,730,362.19
| uch event | ||
56,392,930.47
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting periodConstitution of operation revenue
In RMBCurrent period Same period last year y-o-y changes (+,-)
Amount
Ratio in operation
revenue
Amount
Ratio in operationrevenueTotal operationrevenue
197,051,790.29
100%
278,268,739.33
100%
-29.19%
According to industriesAuto sales 98,797,491.83
50.14%
79,247,600.74
28.48%
24.67%
Auto inspection andmaintenance andaccessories sales
19,138,132.58
9.71%
24,156,408.72
8.68%
-20.77%
Property rental andservice
62,152,861.68
31.54%
77,764,007.23
27.95%
-20.08%
Wholesale andretails of Jewelry
16,963,304.20
8.61%
97,100,722.64
34.89%
-82.53%
According to productsAuto sales 98,797,491.83
50.14%
79,247,600.74
28.48%
24.67%
Auto inspection andmaintenance andaccessories sales
19,138,132.58
9.71%
24,156,408.72
8.68%
-20.77%
Property rental andservice
62,152,861.68
31.54%
77,764,007.23
27.95%
-20.08%
Wholesale andretails of Jewelry
16,963,304.20
8.61%
97,100,722.64
34.89%
-82.53%
According to regionShenzhen 180,088,486.09
91.39%
181,168,016.69
65.11%
-0.60%
Anhui
4,521,763.87
1.62%
-100.00%
Sichuan 16,963,304.20
8.61%
92,578,958.77
33.27%
-81.68%
About the industries, products, or regions accounting for over 10% of the Company’s operating income or operating profit
√Applicable □ Not applicable
In RMB
Operating
revenue
Operating cost
| Gross profit ratio | Increase/decrease |
of operatingrevenue y-o-y
of operating cost
y-o-y
| Increase/decrease | Increase/decrease |
of gross profitratio y-o-yAccording to industriesAuto sales 98,797,491.83
96,189,360.80
2.64%
24.67%
23.45%
0.96%
Auto inspectionand maintenance
19,138,132.58
16,287,281.23
14.90%
-20.77%
-16.58%
-4.28%
and accessoriessalesProperty rentaland service
62,152,861.68
26,287,572.04
57.70%
-20.08%
20.01%
-
| 14.13% |
Wholesale andretails of Jewelry
16,963,304.20
16,010,373.45
5.62%
-82.53%
-82.43%
-0.51%
According to productsAuto sales 98,797,491.83
96,189,360.80
2.64%
24.67%
23.45%
0.96%
Auto inspectionand maintenanceand accessoriessales
19,138,132.58
16,287,281.23
14.90%
-20.77%
-16.58%
-4.28%
Property rentaland service
62,152,861.68
26,287,572.04
57.70%
-20.08%
20.01%
-
| 14.13% |
Wholesale andretails of Jewelry
16,963,304.20
16,010,373.45
5.62%
-82.53%
-82.43%
-0.51%
According to regionShenzhen 180,088,486.09
138,764,214.07
22.95%
-0.60%
16.27%
-
| 28.85% |
Anhui
0.00%
-100.00%
-100.00%
-6.75%
Sichuan 16,963,304.20
16,010,373.45
5.62%
-81.68%
-81.58%
-0.90%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
Affected by epidemic, revenue and costs of the jewelry wholesale and retails declined.III. Analysis of non-main business
√Applicable □ Not applicable
In RMBAmount Ratio in total profit Note Whether be sustainableInvestment income 12,881,490.50
38.78%
| Investment income from shareholding enterprises and |
financing income
NGain/loss of fairvalue changes
-356,102.35
-1.07%
| Redeem the unmatured wealth management income |
at the end of 2019
NAssets impairment 0.00
0.00%
- N
Non-operationrevenue
946,106.92
2.85%
| 1. Obtained government |
subsidy due to t
and 2.
| Income from forfeiting the lease deposit after the tenant returns the |
lease in advance
N
Non-operationexpenditure
29,059.48
0.09%
NCredit impairment 599,201.43
1.80%
| Restoring of bad debt |
provision
NIV. Analysis of assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end of last year
Ratiochanges
Notes of major changesAmount
Ratio in totalassets
Amount
Ratio in total
assetsMonetary fund
| 333,609,309.6 |
21.17%
225,905,191.16
13.20%
7.97%
Accountreceivable
| 60,519,075.70 |
3.84%
113,548,299.77
6.63%
-2.79%
Inventory
0.96%
| 15,113,989.46 |
16,798,362.97
0.98%
-0.02%
Investment realestate
| 545,498,309.3 |
34.61%
494,163,460.21
28.87%
5.74%
Transfer-in from the decoration amount
for Jewelry BuildingLong-term equityinvestment
10.83%
153,819,742.68
8.99%
1.84%
Fix assets
6.61%
109,620,846.65
6.40%
0.21%
Construction inprocess
4.72%
| 74,408,194.38 |
22,707,214.36
1.33%
3.39%
the preliminary input for the project of
Jinzuan Trading BuildingShort-term loans 0.00
0.00%
143,000,000.00
8.35%
-8.35%
The borrowings are returned in total at
end of 2019Long-term loans 0.00
0.00%
0.00
0.00%
0.00%
Dividendreceivable
| 39,647,732.42 |
2.52%
81,600,548.07
4.77%
-2.25%
The profit distribution from
shareholding enterprises Dongfeng
Company and Pudong Development
MachineryAssets held for
0.00%
85,017,251.77
4.97%
-4.97%
The former investment funds for
sale shareholding enterprise Xinglong
Company, and completed the equitytransfer at end of 2019Other currentassets
0.19%
| 2,970,702.64 |
42,208,745.54
2.47%
-2.28%
Adjustment for implementation of theNew Financial Instrument Standard in2019Other accountpayable
| 99,453,009.14 |
6.31%
271,599,091.34
15.87%
-9.56%
The equity transfer funds of Xinglongthat to be recovered in the same period
2. Assets and liability measured by fair value
√ Applicable □Not applicable
In RMBItems
Openingamount
Changes of
fair valuegains/lossesin this period
of last year, and no such event this year
| Accumulative |
changes offair value
equity
Impairmentaccrual in the
Period
Amount ofpurchase inthe period
Amount ofsale in the
period
Otherchanges
EndingamountFinancialassets
1. Tradable
financialassets(excludingderivativefinancialassets)
60,486,575.34
reckoned into
810,800,000.
755,800,000.
115,128,569
.86
4. Other
equityinstrumentsInvestment
10,176,617.20
10,176,617.
Above total 70,663,192.54
-358,005.48
810,800,000.
755,800,000.
125,305,187
.06
Financialliabilities
0.00
0.00
0.00
Content of other changesWhether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. Right of the assets restrained till end of the Period
Item Book value at period-end
Restriction reasons
| Monetary fund | 28,671,414.00 | (1) |
Total
| 28,671,414.00 |
(1) End of 30 June 2020, the Company’s right to use of currency funds under restrictions is 28,671,414.00 Yuan, which is the
supervision fund paid by the Company to Luohu District Urban Renewal Bureau of Shenzhen for the land plot 03 project of theupgrading project of Tellus-Gman Gold Jewelry Industrial Park. The currency funds with restricted use rights at the end of last yearwere 28,183,348.23 Yuan.
V. Investment
1. Overall situation
□Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□Applicable √ Not applicable
4.Financial assets measured by fair value
√Applicable □Not applicable
In RMBType
Initial
cost
Gain/loss of
fair valuechanges
Cumulativechange of fair
| investment | value reckoned |
into equity
Amountpurchasing in
the Period
Amountselling inthe Period
Cumulativeinvestment
income
Endingamount
CapitalsourceOther
70,663,192
.54
-358,005.48
0.00
810,800,000.00
755,800,000
.00
598,686.99
125,305,187
.06
Own fundsTotal
70,663,192
.54
-358,005.48
0.00
810,800,000.00
755,800,000
.00
598,686.99
125,305,187
.06
--
5. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the PeriodVI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main Holding Company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMBCompanyname
Type
Mainbusiness
Registercapital
Total assets
Net assets
Operatingrevenue
Operating
profit
Net profitShenzhenAutoIndustry andTradeCorporation
Subsidiary
Sales of autoandaccessories
RMB 58.96million
373,829,523.
334,882,970.
6,764,801.62
3,509,253.
2,581,442.92
ShenzhenSDG HuariAutoEnterpriseCo., Ltd.
Subsidiary
Automaintenanceandproductionand sales ofaccessories
US$ 5million
73,717,821.6
| 24,954,700.1 |
16,003,589.0
551,747.46
549,866.95
ShenzhenZhongtian
Subsidiary
Propertyrental
RMB
366.2219
632,478,145.
410,494,812.
31,003,603.4
16,864,184
.62
13,179,700.32
IndustrialCo,. Ltd.
millionShenzhenHuari ToyotaAuto SalesCo. Ltd
Subsidiary
AutomobileSales
RMB 2
million
67,368,569.3
4,192,036.40
119,178,692.
-213,105.0
-3,930.02
ShenzhenXinyongtongAuto VehicleInspectionEquipmentCo., Ltd.
Subsidiary
Manufactureof inspectionequipmentfor motorvehicle
RMB 19.61
million
13,505,262.5
8,326,499.17
1,937,703.80
497,695.37
472,065.44
ShenzhenTellusXinyongtongAutomobileDevelopmentCo. Ltd
Subsidiary
Inspectionand repair ofmotorvehicle
RMB 32.9
million
84,045,236.1
65,193,283.1
4,732,830.21
3,499,323.
2,683,208.62
SichuanTellus
| Jewelry Tech. |
Co., Ltd.
Subsidiary
Wholesale of
jewelry
RMB 150
million
154,097,291.
153,415,865.
16,963,304.2
2,652,318.
2,017,572.52
ShenzhenTellusChuangyingTech. Co.,Ltd.
Subsidiary
Propertyrental
RMB 14
million
15,344,257.3
12,818,879.7
1,073,816.65
-554,343.6
-554,344.35
Anhui TellusStarlightJewelryInvestmentCo., Ltd.
Subsidiary Jewelry sales
RMB 9.8
million
159,280.75
-1,228,757.3
77,034.65
77,034.65
ShenzhenZung FuTellus AutoService Co.,Ltd.
Joint stockCompany
Car sales andmaintenance
RMB 30
million
268,923,388.
102,743,982.
542,501,386.
13,528,433
.80
12,502,889.67
ShenzhenDongfengMotor Co.,Ltd.
Joint stockCompany
Manufactureandmaintenanceofautomobile
RMB 100
million
647,785,962.
163,979,281.
154,117,515.
820,711.18
-345,684.65
ShenzhenTellus GmanInvestmentCo., Ltd.
Joint stockCompany
industry,propertymanagementand leasing
RMB
123.70496
million
416,200,766.
| Investment in |
148,432,955.
37,081,024.7
10,769,769
.93
8,079,274.57
Particular about subsidiaries obtained or disposed in report period
□Applicable √Not applicable
VIII. Structured vehicle controlled by the Company
□Applicable √Not applicable
IX. Prediction of business performance from January – September 2020Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
□Applicable √ Not applicable
X. Risks and countermeasures
(1) The overall economic environment has a serious negative impact on company operations
Affected by the epidemic, the jewelry industry has shown a trend of sharp decline in market demand, a backlog ofupstream and downstream inventories, and a decline in corporate performance. At the same time, most of thetransportation channels for valuables from Hong Kong and other regions outside the country to China havestagnated, which has seriously affected the circulation and transactions of diamond jewelry.
In response to this risk, the company will actively take various preventive measures. The first is to continue tostrengthen management, improve efficiency through scientific management, tap potential and increase revenue,and comprehensively improve the profitability of the original business; the second, sort out the business, reducethe business scale of regional platform with high risks, and insist on making progress while maintaining stability;the third is to firmly promote the pace of strategic transformation of the company, promote the transformation ofthe project through innovative business models, expand the incremental market, expand the scale of business, lookfor new profit growth points, and provide a good foundation for the company’s long-term stable development.
(2)Risks brought by transforming into new areas
In recent years, the company has fully promoted the strategic goal of transforming into a third-party integratedoperation service provider in the jewelry industry, and many transformation projects have been implemented andachieved good results. However, in the process of deeply cutting into the jewelry industry, the company hasbecome more and more aware of the difficulties and risks that will be faced in the transition to a new business
area. Whether we can realize the innovative integration of the traditional characteristics of jewelry industry andthe new technology and new model, how to meet the ever-changing individualized and diversified needs ofemerging consumer groups, and how to make a path of innovative development in the industry environment withmore fierce competition in market segment, these are all new challenges that the company needs to solve urgentlyand put forward higher requirements for the company's resource integration capabilities, project managementcapabilities and professional talent reserves in the transformation of business layout.
In response to this risk, on the one hand, the company will continue to strengthen the transformation conviction, inaccordance with the established overall development strategy and business strategy, fully demonstrate, prudentlymake decisions, carry out fine management, make market-oriented operation, ensure that transformation projectsachieve good investment returns, and actively respond to market competition; on the other hand, the company willsteadily promote reform and innovation, and with the opportunity to complete the “Double Hundred Actions”,explore and improve the company's long-term incentive mechanism, mobilize the enthusiasm of all employees,improve the management level and operational efficiency of the enterprise, and effectively enhance the corecompetitiveness of the enterprise.
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Meeting Type
Participation ratiofor investors
Holding date Disclosure date Index
First ExtraordinaryShareholdersMeeting of 2020
ExtraordinaryShareholdersMeeting
66.01%
2020-03-23 2020-03-24
| Notice No.: |
2020-
and Juchao
| Website |
(www.cninfo.com.cn)
Annual GeneralMeeting 2019
AGM 65.97%
2020-04-24 2020-04-25
| Notice No.: |
2020-
(www.cninfo.com.cn)
SecondExtraordinaryShareholdersMeeting of 2020
ExtraordinaryShareholdersMeeting
65.57%
| 025 on Securities Times, Hong Kong Commercial Daily and Juchao Website | ||
2020-06-17 2020-06-18
2020-
| 032 on Securities Times, Hong Kong Commercial Daily and Juchao Website |
(www.cninfo.com.cn)
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
III. Commitments that actual controller, shareholder, related parties, buyer and committedparty as the Company etc. have fulfilled during the reporting period and have not yet fulfilledby the end of reporting period
√Applicable □ Not applicable
Commitments
Commitment party
Type ofcommitments
Content of commitments
Commitmen
t date
Commitm
ent term
Impleme
ntationCommitments forshare merger reform
Commitments inreport ofacquisition or equitychange
Commitments inassets reorganization
initial public offeringor re-financing
ShenzhenTellus
| Commitments make in | Holding Co., |
Ltd.
Other
The
and business d
| evelopment that has not been disclosed within one year. In the future, the Company shall timely, accurately and adequately disclose the relevant information according to the progress of new business and |
the related requirements.
2014-10-17 Long-term
Implementing
Equity incentivecommitment
Other commitmentsfor medium and smallshareholders
ShenzhenSpecialDevelopment Group Co.,Ltd. (SDG)
Horizontal
Competition
| Horizontal | In order to avoid the horizontal competition, the Company’s controlling shareholder, |
S
occupied in a
| ny business that could substantially compete with the main businesses of Tellus Group, and have no horizontal competition relationship with |
2014-05-26 Long-term
Implementing
Tellus Group.
will first be used to c
| over the losses of previous years; after making up for losses of previous years, in the premise that the Company’s profits and cash flow can meet the |
Company's normal operations and long-
Company will implement pos
| itive profit distribution approaches to reward the shareholders, details are as follows: 1. The Company’s profit distribution can adopt cash, stock or the combination of cash and stock or other methods permitted by law. The foreign |
currency conversion rate
2. According to th
| e "Company Law" and other relevant laws and the provisions of the Company’s "Articles of Association", following conditions should be satisfied when the Company implements cash dividends: (1) the Company's annual distributable profits |
(i.e. the after-tax p
report with c
| lean opinion to the Company's annual financial report; (3) the Company has no significant investment plans or significant |
cash outlay (except for fund-
outlay refer to: the accumulated expenditur
| es the Company plans to used for investments abroad, acquisition of assets, or purchase of equipment within the next 12 months reach or exceed 30% of the net assets audited in the latest period. 3. In the premise of meeting the |
conditions of cash dividends
2020-04-02
2022-12-3
Implementing
Company’s normal operation and long-
accordance with the Company's prof
| itability and capital demand conditions. The proportion of cash dividends in profits available for distribution and in distribution of profits should meet the following requirements: (1) in principle, the Company’s |
profits distributed in cash every year sh
available for distributi
| on realized in the last three years. (2) if the Company’s development stage belongs to mature stage and there is no significant capital expenditure arrangement, when distributing profits, the minimum proportion of cash dividends in this profit |
distribution
40%; (4) if
| the Company’s development stage belongs to growth stage and there are significant capital expenditure arrangements, when distributing profits, the minimum proportion of cash dividends in this profit distribution should be 20%; when the |
Company's developme
revenue and net p
| rofit grow fast, and the board of directors considers that the Company’s equity scale and equity structure |
distribution plans. When all
| ocating stock dividend every time, the stock dividend per 10 shares should be no less than 1 share. Stock allocation can be implemented individually or in combination of cash dividends. When confirming the exact amount |
of profit distribution by stock, the
allocation plans meet the o
| verall interests of |
all shareholders.Completed on time(Y/N)
YAs for the
commitment time,explain the specificreasons and furtherplans
Not applicable
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not auditedV. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization in Period.VIII. LawsuitsMaterial lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reportingOther lawsuits
√Applicable □ Not applicable
of litigation(Arbitration)
Amount of
moneyinvolved (in10 thousand
Yuan)
Predicted
| The basic situation | liabilities (Y/N) | Advances in |
litigation(Arbitration
)
The results andeffects of litigation
(Arbitration)
Execution ofthe litigation(Arbitration)
Disclosure
date
Disclosure
index
Labor disputes(Xie Jianguang)
No Case closed
The company paid519,000 yuancompensation to theappellant
Executed -Labor disputes(Ma Baohong)
No Case closed Company wins - -Leasing Contractdispute (ZhangNing)
No
Waiting forthescheduledhearing
- - -
Disputes overguarantee rights ofrecovery (Jintian)
32.5
(Ordersinclude42,7604 Ashares and163,886 Bshares)
No
Wait for theverdict totake effect
Jintian Companypaid 325,000 yuan toTellus Group within5 days from theeffective date of thejudgment, anddelivered 427604 Ashares and 163886 Bshares of JintianGroup.
-
IX. Media questioning
□Applicable √Not applicable
During the reporting period, the company had no media generally questioned matters.
X. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XI. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had good reputation, andthere is no large amount due un-liquidated debt sentenced by the court.XII. Implementation of the Company’s stock incentive plan, employee stock ownership planor other employee incentives
□Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentivesthat have not been implemented.XIII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Relatedparty
Relation
ship
Type ofrelatedtransacti
on
ofrelatedtransacti
on
Pricingprincipl
e
Relatedtransaction price
| Content |
Relatedtransacti
onamount(in 10thousand Yuan)
Proporti
on insimilartransactions (%)
Trading
limitapproved (in 10thousand Yuan)
approve
dlimitedor not(Y/N)
| Whether over the | Clearing form for |
relatedtransaction
Availabl
market
price
Date ofdisclosu
re
Index
ofdisclos
ureShenzhen ZungFuTellusAutoServiceCo.,Ltd.
Director/Supervisor/ SEservesdirectorof theCompany
Routinerelatedtransactions
Providing
| e similar | ||
| property |
leasing
Reference tomarketprice
169.44 169.44
15.58%
N
Bycontractoragreement
169.44
Shenzhen SDTellus
| Property |
Manage
Subsidia
controllingsharehol
Routinerelatedtransactions
Providingp
| ry of the | roperty |
leasing
Reference tomarketprice
2.54 2.54
0.23%
N
Bycontractoragreement
2.54
mentCo.,Ltd.
der
Shenzhen SDGPettyLoanCo.,Ltd.
Subsidia
controllingshareholder
Routinerelatedtransactions
Providing
| ry of the | property |
leasingandmanagementservice
Reference tomarketprice
62.07 62.07
5.71%
N
Bycontractoragreement
62.07
JewelryParkBranchofShenzhen SDGServiceCo.,Ltd.
Sub-subsidiaryofcontrollingshareholder
Routinerelatedtransactions
| Offering property |
renal
Reference tomarketprice
89.80 89.8
8.26%
151.36
N
Bycontractoragreement
89.80
Shenzhen SDGEngineeringManagementCo., Ltd
Subsidia
controllingshareholder
Routinerelatedtransactions
Acceptengineeringsupervisionservice
Reference tomarketprice
63.76 63.76
| ry of the |
5.86%
532.02
N
Bycontractoragreement
63.76
Shenzhen SDTellus
ManagementCo.,Ltd.
Subsidia
| Property | ry of the |
controllingshareholder
Routinerelatedtransactions
Accepting
managementservice
Reference tomarketprice
700.15 700.15
| property |
64.37%
1,400.31
N
Bycontractoragreement
700.15
Total -- -- 1,087.76
-- 2,778.69
-- -- -- -- --Detail of sales return with majoramount involved
N/AReport the actual implementation of
were projected about their total
| amount by types during the reporting |
Performing normally
period (if applicable)Reasons for major differencesbetween trading price and marketreference price (if applicable)
Not applicable
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
√Applicable □ Not applicable
Whether has non-operational contact of credit and debts or not
√Yes □No
Debts payable to related party:
Relationship
| Related party |
Causes
Balance atperiod-begin(10 thousand
Yuan)
Currentnewly added
(10 thousand
Yuan)
Currentrecovery(10 thousand
Yuan)
Interest rate
Currentinterest(10 thousand
Yuan)
Balance atperiod-end(10 thousand
Yuan)ShenzhenSpecialDevelopmentGroup Co.,Ltd.
Controllingshareholder
Loansinterests ofHuariCompany
1,738
1,745
ShenzhenSpecialDevelopmentGroup Co.,Ltd.
Controllingshareholder
Loanprincipal ofHuariCompany
Impact on operation resultsand financial status
Total profit decreased 70,000 Yuan due to the interest expenses increased in the Year
5. Other related transactions
□Applicable √Not applicable
No other related transaction in Period
XIV. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand YuanParticulars about the external guarantee of the Company and its subsidiary (Barring the guarantee for subsidiaries)Name of theCompanyguaranteed
RelatedAnnouncementdisclosure
date
Guarantee
limit
Actual date ofhappening
Actualguarantee limit
Guarantee
type
Guaranteeterm
Implemen
| ted (Y/N) |
Guarante
e forrelated
party
(Y/N)Shenzhen Zung FuTellus AutoService Co., Ltd.
2014-09-30 3,500
2007-04-17 3,500
Pledge
To the expiredate of jointventurecontract
N YTotal approving externalguarantee in report period (A1)
Total actual occurred externalguarantee in report period(A2)
3,500
Total approved externalguarantee at the end of reportperiod (A3)
3,500
Total actual balance ofexternal guarantee at the endof report period (A4)
3,500
Guarantee of the Company and the subsidiariesName of the
Companyguaranteed
RelatedAnnounce
mentdisclosure
date
Guaranteelimit
Actual date ofhappening
Actualguarantee limit
Guarantee
type
Guarantee
term
Implemen
| ted (Y/N) |
Guarante
e forrelatedparty(Y/N)
report period (B1)
| Total amount of approving guarantee for subsidiaries in | Total amount of actual occurred guarantee for subsidiaries in report period |
(B2)
Tot
| al amount of approved guarantee for subsidiaries at the |
end of reporting period (B3)
| Total balance of actual guarantee for subsidiaries at the end of reporting period |
(B4)
Guarantee of the subsidiaries and the subsidiariesName of the
Companyguaranteed
RelatedAnnounce
mentdisclosure
date
Guarantee
limit
Actual date of
happening
Actualguarantee limit
Guarantee
type
Guarantee
term
Implemen
| ted (Y/N) |
Guarante
e forrelated
party
(Y/N)
report period (C1)
| Total amount of approving guarantee for subsidiaries in | Total amount of actual occurred guarantee for subsidiaries in report period |
(C2)
| Total amount of approved guarantee for subsidiaries at the |
end of reporting period (C3)
| Total balance of actual guarantee for subsidiaries at |
the end of re
(C4)
| porting period |
Total amount of guarantee of the Company (total of three above mentioned guarantee)Total amount of approvingguarantee in report period(A1+B1+C1)
Total amount of actualoccurred guarantee in reportperiod (A2+B2+C2)
3,500
Total amount of approvedguarantee at the end of reportperiod (A3+B3+C3)
3,500
Total balance of actualguarantee at the end of reportperiod (A4+B4+C4)
3,500
The proportion of the total amount of actually guarantee in thenet assets of the Company (that is A4+ B4+C4)
2.74%
Amount of guarantee for shareholders, actual controller and itsrelated parties (D)
| The debts guarantee amount provided for the guaranteed |
parties whose assets-
| liability ratio exceed 70% directly or |
Proportion of total
| indirectly (E) |
| amount of guarantee in net assets of the |
Company exceed 50% (F)
Total amount of the aforesaid three guarantees (D+E+F) 0
| Explanations on possibly bearing joint and several liquidating |
responsibilities for undue guarantees (if applicable)
N/AExplana
procedures (if applicable)
N/A
(2) Guarantee outside against the regulation
□Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Trust financing
√Applicable □Not applicable
In 10 thousand YuanType Capital resources Amount for entrust Balance un-expired Overdue amountBank financing product Own funds 40,300
tions on external guarantee against regulated
11,500
Total 40,300
11,500
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √Not applicable
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.XVI. Social responsibility
1. Major environmental protection
Listed Company and its subsidiary belong to the key pollution enterprise listed by Department of Environmental ProtectionNo
2. Targeted poverty alleviation social responsibility
(1) Targeted measures in poverty alleviation
During the period, the Company participates in the targeted measures in poverty alleviation for Libai Village, Shangguang Town,Dongyuan County, Heyuan City, Guangdong Province.
(2) Semi-annual poverty alleviation
The Company is concerned about the mountainous areas, takes the initiative to assume social responsibilities for poverty alleviation.According to the arrangement, the Company is responsible for the hard bottoming and widening of village roads and the hardbottoming of roads for transporting of Libai village. The project has begun on 29 December 2017, the project has been completed.After the project is completed, it will greatly facilitate the production and transportation of Libai villagers, and the “difficulties inroads” that have plagued the villagers for many years will be thoroughly resolved.
(3) Results of targeted poverty alleviation
Target
Measurementunit
Numbers/ implementationi. Overall —— ——ii. Invested by specific project —— ——
1. Industrial development poverty —— ——
2. Transfer employment —— ——
3.Relocation the poor —— ——
4.Education poverty —— ——
5.Health poverty alleviation —— ——
6.Ecological protection and poverty alleviation —— ——
7.Fallback protection —— ——
8.Social poverty alleviation —— ——
9. Other —— ——iii. Awards (content and grade) —— ——
(4) Follow-up of targeted poverty alleviation
The road expansion and repair in Li Bai village
XVII. Explanation on other significant events
□ Applicable √ Not applicable
The Company had no explanation on other significant events in the reporting period.
XVIII. Significant event of subsidiary of the Company
√Applicable □ Not applicable
Sichuan Channel Platform Company was established on July 3, 2017 with a registered capital of 150 million yuan.Since 2020, due to various factors, the scale of the business has continued to decline. In the first half of 2020, thecumulative operating revenue was 16,963,300 yuan, a year-on-year decrease of 75,615,700 yuan. The mainreasons for the sharp drop in revenue are: Firstly, the outbreak of the epidemic at the end of 2019 has afar-reaching impact on small and medium-sized enterprises. Most customer stores in Sichuan have beensuspended since the Spring Festival, and cash flow has been extremely exhausted, and the main customer groupsserved by the company have a sharp decline in business demand. Secondly, in recent years, the market demand inthe jewelry industry has fallen sharply, and the upstream and downstream inventory has been overstocked, theoverall situation is not optimistic. Thirdly, after the company’s comprehensive assessment, in order to strictlycontrol risks, Sichuan Channel Platform Company has been suspended from launching new business. On the onehand, we took the initiative to assume the social responsibilities of state-owned enterprises, and gave up someprofits to help customers tide over difficulties.In the face of the above operating difficulties and challenges, Sichuan Channel Platform Company will continue tostrictly control risks, seek progress while maintaining stability, and actively explore business modeltransformation, seize the low period of the jewelry industry caused by the epidemic, and explore new cooperationand profit models.
Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
In Share
Before change Increase/decrease in this time (+ , - ) After changeAmount
Ratio New issue
Bonusshare
Capitalization ofpublicreserve
Other Subtotal
Amount
RatioReasons for share changed
□Applicable √Not applicable
Approval of share changed
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
□Applicable √ Not applicable
II. Securities issuance and listing
□Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stockshareholders in reportingperiod-end
49,238
Total preference shareholderswith voting rights recovered atend of reporting period (ifapplicable) (found in note 8)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Full name ofShareholders
Nature ofshareholder
Proportionof sharesheld
Totalshareholders at theend ofreportperiod
Changes in
reportperiod
Amountofrestrictedsharesheld
Amount ofun-restricte
d sharesheld
Number of share pledged/frozen
State of share
AmountShenzhenSpecialDevelopmentGroup Co., Ltd.
State-ownedcorporation
49.09%
211,591,6
0 0
211,591,62
ShenzhenCapital FortuneJewelryIndustryInvestmentEnterprise(limitedpartnership)
Domestic nonstate-ownedcorporate
15.89%
68,475,98
-8,620,885 0
68,475,986
GUOTAIJUNANSECURITIES(HONGKONG)LIMITED
Foreigncorporation
0.41%
1,746,091
1,746,091
Hong KongSecuritiesClearingCompanyLimited
Foreigncorporation
0.27%
1,168,065
+364,717 0
1,168,065
AgriculturalBank of ChinaLtd. – CSI 500ETF
Other
0.19%
836,089
-171,135 0
836,089
# HuangXinchang
Domestic natureperson
0.15%
632,608
+169,043 0
632,608
#Chen Yun
Domestic natureperson
0.12%
500,000
+200,000 0
500,000
#Lu Xia
Domestic natureperson
0.12%
496,195
+253,500
496,195
Li Guangxin
Domestic natureperson
0.11%
487,181
487,181
# TangZhenxiong
Domestic natureperson
0.11%
461,520
+461,520
461,520
Strategy investors or generalcorporation comes top 10shareholders due to rights issue (ifapplicable) (see note 3)
N/A
Explanation on associated
relationship amo
| ng the top ten |
shareholders or consistent action
state-
| owned legal person’s shareholders SDG, Ltd and other shareholders, and they do not |
belong to the consistent actionist
circulation share, the Company is unknown whether they belong to the consistent actionist.Particular about top ten shareholders with un-restrict shares heldShareholders’ name Amount of un-restrict shares held at Period-end
Type of sharesType AmountShenzhen Special DevelopmentGroup Co., Ltd.
211,591,621
regulated by the Management Measure of InformationDisclosure on Change of Shareholding for Listed Companies. For the other shareholders of
RMB ordinaryshares
211,591,621
Shenzhen Capital Fortune JewelryIndustry Investment Enterprise(limited partnership)
68,475,986
RMB ordinaryshares
68,475,986
GUOTAI JUNANSECURITIES(HONGKONG)LIMITED
1,746,091
Domesticallylisted foreignshares
1,746,091
Hong Kong Securities ClearingCompany Limited
1,168,065
Domesticallylisted foreignshares
1,168,065
Agricultural Bank of China Ltd. –CSI 500 ETF
836,089
RMB ordinaryshares
836,089
Huang Xinchang 632,608
RMB ordinaryshares
632,608
Chen Yun 500,000
RMB ordinaryshares
500,000
Lu Xia 496,195
RMB ordinaryshares
496,195
Li Guangxin 487,181
RMB ordinaryshares
487,181
Tang Zhenxiong461,520
RMB ordinaryshares
461,520
| Expiation on associated relationship or consistent actors within the top |
10 un-
between top 10 un-restrict
| shareholders and top 10 |
shareholders
state-
| owned legal person’s shareholders SDG and other shareholders, and they do not belong |
to the consistent actionist regulated by th
the Company is unknown whether they belong to the consistent actionist.
| e Management Measure of Information Disclosure on Change of Shareholding for Listed Companies. For the other shareholders of circulation share, | |
| Explanation on shareholders |
involving m
un-
| restrict shares held (if |
applicable) (see note 4)
Shareholder Huang Xinchang holds 632,608
for credit transactions, and holds 0 share of the Company vi
| a common security account; |
Shareholder Chen Yun holds 500,000
Shareholder Lu Xia holds 496,195 shares of the Company throu
| gh security account for credit transactions, and holds 0 share of the Company via common security account; Shareholder |
Tang Zhenxiong holds 461,520
transactions, and holds 0 share of the Company via common security account,
| 2,090,323 |
shares are held in total by Tang.Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.IV. Changes of controlling shareholders or actual controllerChanges of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
Section IX. Directors, Supervisors and Senior ExecutivesI. Changes of shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
Found more in annual report 2019 for the changes of shares held by directors, supervisors and senior executivesII. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2019.
Section X. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whensemi-annual report approved for released or fail to cash in full on dueNo
Section XI. Financial Report
I. Audit reportsWhether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unauditedII. Financial statements
1. Consolidated balance sheet
2020-06-30
In RMBItem 2020-6-30 2019-12-31Current assets:
Monetary funds 333,609,309.62
428,851,606.04
Settlement provisions
Capital lent
Tradable financial assets 115,128,569.86
60,486,575.34
Derivative financial assets
Note receivable
Account receivable 60,519,075.70
112,613,224.27
Receivable financing
Accounts paid in advance 17,088,141.12
12,683,603.89
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurancereceivable
Other account receivable 45,617,678.95
44,908,546.40
Including: Interest receivable
Dividend receivable 39,647,732.42
39,647,732.42
Buying back the sale of financialassets
Inventories 15,113,989.46
21,389,602.83
Contractual assets
Assets held for sale
Non-current asset due within oneyear
Other current assets 2,970,702.64
3,403,969.23
Total current assets 590,047,467.35
684,337,128.00
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 170,700,410.89
162,178,544.05
Investment in other equityinstrument
10,176,617.20
10,176,617.20
Other non-current financial assets
Investment real estate 545,498,309.35
554,599,503.55
Fixed assets 104,203,903.95
107,119,796.59
Construction in progress 74,408,194.38
47,654,393.55
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 49,968,510.91
50,561,225.67
Expense on Research andDevelopment
Goodwill
Long-term expenses to beapportioned
12,895,310.28
13,606,805.49
Deferred income tax asset 8,639,491.29
8,658,962.39
Other non-current asset 9,517,049.06
6,889,167.54
Total non-current asset 986,007,797.31
961,445,016.03
Total assets 1,576,055,264.66
1,645,782,144.03
Current liabilities:
Short-term loans 0.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 67,591,547.16
69,087,430.42
Accounts received in advance 14,416,295.28
27,299,822.71
Contractual liability
Selling financial asset ofrepurchase
Absorbing deposit and interbankdeposit
Security trading of agency
Security sales of agency
Wage payable 30,992,026.80
31,204,794.89
Taxes payable 13,159,531.35
71,425,267.61
Other account payable 99,453,009.14
101,266,802.49
Including: Interest payable
Dividend payable
Commission charge andcommission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due withinone year
Other current liabilities
Total current liabilities 225,612,409.73
300,284,118.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 0.00
Bonds payable
Including: Preferred stock
Perpetual capitalsecurities
Lease liability
Long-term account payable 3,920,160.36
3,920,160.36
Long-term wages payable
Accrual liability 2,225,468.76
2,225,468.76
Deferred income 139,400.00
139,400.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 6,285,029.12
6,285,029.12
Total liabilities 231,897,438.85
306,569,147.24
Owner’s equity:
Share capital 431,058,320.00
431,058,320.00
Other equity instrument
Including: Preferred stock
Perpetual capitalsecurities
Capital public reserve 431,449,554.51
431,449,554.51
Less: Inventory shares
Other comprehensive income 26,422.00
26,422.00
Reasonable reserve
Surplus public reserve 21,007,488.73
21,007,488.73
Provision of general risk
Retained profit 394,914,047.12
387,423,510.78
Total owner’ s equity attributable toparent company
1,278,455,832.36
1,270,965,296.02
Minority interests 65,701,993.45
68,247,700.77
Total owner’ s equity 1,344,157,825.81
1,339,212,996.79
Total liabilities and owner’ s equity 1,576,055,264.66
1,645,782,144.03
Legal representative: Fu Chunlong Accounting Principal: Lou Hong Accounting Firm’s Principal: Liu Yuhong
2. Balance Sheet of Parent Company
In RMBItem 2020-6-30 2019-12-31Current assets:
Monetary funds 149,476,502.21
201,885,691.27
Trading financial assets
40,324,383.56
Derivative financial assets
Note receivable
Account receivable 2,487,958.11
206,710.76
Receivable financing
Accounts paid in advance 16,500.00
100,000.00
Other account receivable 136,039,446.63
116,037,773.09
Including: Interest receivable
Dividend receivable 547,184.35
547,184.35
Inventories
Contractual assets
Assets held for sale
Non-current assets maturing
one year
| within |
Other current assets 2,304,943.56
1,419,760.18
Total current assets 290,325,350.51
359,974,318.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 868,070,987.03
859,355,040.60
Investment in other equityinstrument
10,176,617.20
10,176,617.20
Other non-current financial assets
Investment real estate 38,164,135.64
39,616,602.02
Fixed assets 13,680,941.18
14,012,830.64
Construction in progress 50,643,962.68
35,321,704.26
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 48,418,670.74
48,953,266.56
Research and development costs
Goodwill
Long-term deferred expenses 2,460,433.45
2,639,122.63
Deferred income tax assets 3,538,377.94
3,557,849.04
Other non-current assets 9,417,049.06
6,789,167.54
Total non-current assets 1,044,571,174.92
1,020,422,200.49
Total assets 1,334,896,525.43
1,380,396,519.35
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 14,000.00
14,000.00
Accounts received in advance 7,849.53
Contractual liability
Wage payable 17,856,341.97
8,199,278.01
Taxes payable 677,021.46
54,684,929.01
Other accounts payable 259,193,066.48
257,260,350.77
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due withinone year
Other current liabilities
Total current liabilities 277,748,279.44
320,158,557.79
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capitalsecurities
Lease liability
Long-term account payable
| Long term employee compensation |
payable
Accrued liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 277,748,279.44
320,158,557.79
Owners’ equity:
Share capital 431,058,320.00
431,058,320.00
Other equity instrument
Including: preferred stock
Perpetual capitalsecurities
Capital public reserve 428,256,131.23
428,256,131.23
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 21,007,488.73
21,007,488.73
Retained profit 176,826,306.03
179,916,021.60
Total owner’s equity 1,057,148,245.99
1,060,237,961.56
Total liabilities and owner’s equity 1,334,896,525.43
1,380,396,519.35
3. Consolidated Profit Statement
In RMBItem 2020 semi-annual 2019 semi-annualI. Total operating income 197,051,790.29
278,268,739.33
Including: Operating income 197,051,790.29
278,268,739.33
Interest income
Insurance gained
Commission charge andcommission income
II. Total operating cost 177,927,309.69
243,457,096.79
Including: Operating cost 154,774,587.52
210,494,012.42
Interest expense
Commission charge andcommission expense
Cash surrender value
Net amount of expense ofcompensation
Net amount of withdrawal ofinsurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 1,376,727.57
2,968,165.06
Sales expense 6,776,144.54
9,358,514.29
Administrative expense 17,202,000.61
16,878,629.26
R&D expense
Financial expense -2,202,150.55
3,757,775.76
Including: Interestexpenses
46,986.20
4,765,937.06
2,453,494.99
| Interest income |
1,152,054.69
Add: other income 52,846.70
6,611.29
Investment income (Loss islisted with “-”)
12,881,490.50
16,711,450.93
Including: Investment incomeon affiliated company and joint venture
8,521,866.84
10,775,524.54
The ter
| mination of income |
recognition for financial assets measuredby amortized cost(Loss is listed with “-”)
Exchange income (Loss islisted with “-”)
Net exposure hedging income(Loss is listed with “-”)
Income from change of fairvalue (Loss is listed with “-”)
-356,102.35
Loss of credit impairment(Loss is listed with “-”)
599,201.43
101,666.14
Losses of devaluation of asset(Loss is listed with “-”)
0.00
Income from assets disposal(Loss is listed with “-”)
103,159.68
III. Operating profit (Loss is listed with“-”)
32,301,916.88
51,734,530.58
Add: Non-operating income 946,106.92
119,625.44
Less: Non-operating expense 29,059.48
833,400.00
IV. Total profit (Loss is listed with “-”) 33,218,964.32
51,020,756.02
Less: Income tax expense 6,448,306.06
6,038,256.76
V. Net profit (Net loss is listed with “-”) 26,770,658.26
44,982,499.26
(i) Classify by business continuity
1.continuous operating net profit
(net loss listed with ‘-”)
26,770,658.26
44,982,499.26
2.termination of net profit (net loss
listed with ‘-”)(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
25,594,985.78
44,779,948.60
2.Minority shareholders’ gains and
losses
1,175,672.48
202,550.66
VI. Net after-tax of other comprehensiveincome
Net after-tax of other comprehensiveincome attributable to owners of parentcompany
(I) Other comprehensive incomeitems which will not be reclassifiedsubsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannotbe transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive incomeitems which will be reclassifiedsubsequently to profit or loss
1.Other comprehensive
income under equity method that cantransfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensiveincome
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currencyfinancial statements
7.Other
Net after-tax of other comprehensiveincome attributable to minorityshareholders
VII. Total comprehensive income 26,770,658.26
44,982,499.26
Total comprehensive incomeattributable to owners of parent Company
25,594,985.78
44,779,948.60
Total comprehensive incomeattributable to minority shareholders
1,175,672.48
202,550.66
VIII. Earnings per share:
(i) Basic earnings per share 0.0594
0.1039
(ii) Diluted earnings per share 0.0594
0.1039
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined partyLegal representative: Fu Chunlong Accounting Principal: Lou Hong Accounting Firm’s Principal: Liu Yuhong
4. Profit Statement of Parent Company
In RMBItem 2020 semi-annual 2019 semi-annualI. Operating income 13,120,854.52
19,112,054.55
Less: Operating cost 3,857,719.57
1,774,557.00
Taxes and surcharge 409,089.36
786,231.07
Sales expenses 1,569,961.98
Administration expenses 12,509,528.85
8,507,495.18
R&D expenses
Financial expenses -961,656.89
2,775,796.55
Including: interestexpenses
3,610,643.70
Interest income 1,050,258.70
851,734.70
Add: other income 21,849.42
Investment income (Loss islisted with “-”)
19,230,523.18
11,794,465.45
on affiliated Company and joint venture
8,715,946.43
8,376,471.67
The termination ofincome recognition for financial assetsmeasured by amortized cost (Loss islisted with “-”)
Net exposure hedging income(Loss is listed with “-”)
Changing income of fairvalue (Loss is listed with “-”)
-324,383.56
Loss of credit impairment(Loss is listed with “-”)
-18,945.66
(Loss is listed with “-”)
| Losses of devaluation of asset |
Income on disposal of assets(Loss is listed with “-”)
II. Operating profit (Loss is listed with“-”)
14,664,200.69
17,043,494.54
Add: Non-operating income -18,810.00
19,425.71
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 14,645,390.69
17,062,920.25
Less: Income tax -369,343.18
764,471.10
IV. Net profit (Net loss is listed with“-”)
15,014,733.87
16,298,449.15
(i)continuous operating net profit(net loss listed with ‘-”)
15,014,733.87
16,298,449.15
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other comprehensiveincome
(I) Other comprehensive incomeitems which will not be reclassifiedsubsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity m
be transfer to gain/loss
| ethod that cannot |
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive incomeitems which will be reclassifiedsubsequently to profit or loss
1.Other comprehensive
income under equity method that cantransfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to othercomprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreigncurrency financial statements
7.Other
VI. Total comprehensive income 15,014,733.87
16,298,449.15
VII. Earnings per share:
(i) Basic earnings per share 0.0348
0.0378
(ii) Diluted earnings per share 0.0348
0.0378
5. Consolidated Cash Flow Statement
In RMBItem 2020 semi-annual 2019 semi-annualI. Cash flows arising from operatingactivities:
Cash received from sellingcommodities and providing laborservices
263,485,972.58
275,395,004.65
Net increase of customer depositand interbank deposit
Net increase of loan from centralbank
Net increase of capital borrowedfrom other financial institution
Cash received from originalinsurance contract fee
business
| Net cash received from reinsurance |
Net increase of insured savingsand investment
Cash received from interest,commission charge and commission
Net increase of capital borrowed
Net increase of returned businesscapital
and purchase of securities
| Net cash received by agents in sale |
Write-back of tax received
Other cash received concerningoperating activities
38,218,429.50
30,288,007.02
Subtotal of cash inflow arising fromoperating activities
301,704,402.08
305,683,011.67
Cash paid for purchasingcommodities and receiving laborservice
142,251,999.24
212,542,573.51
Net increase of customer loans and
advances
Net increase of deposits in centralbank and interbank
Cash paid for original insurancecontract compensation
Net increase of capital lent
Cash paid for interest, commissioncharge and commission
Cash paid for bonus of guaranteeslip
Cash paid to/for staff and workers 24,589,002.12
26,091,445.73
Taxes paid 68,873,589.78
9,452,428.27
Other cash paid concerningoperating activities
48,683,488.74
30,162,504.86
Subtotal of cash outflow arising fromoperating activities
284,398,079.88
278,248,952.37
Net cash flows arising from operatingactivities
17,306,322.20
27,434,059.30
II. Cash flows arising from investingactivities:
Cash received from recoveringinvestment
755,800,000.00
965,735,585.20
Cash received from investmentincome
4,556,873.60
5,967,222.92
Net cash received from disposal offixed, intangible and other long-termassets
6,400.00
78,500.00
Net cash received from disposal ofsubsidiaries and other units
Other cash received concerninginvesting activities
20,870,000.00
Subtotal of cash inflow from investingactivities
760,363,273.60
992,651,308.12
Cash paid for purchasing fixed,intangible and other long-term assets
37,821,844.32
34,041,146.15
Cash paid for investment 810,800,000.00
904,100,000.00
Net increase of mortgaged loans
Net cash received fromsubsidiaries and other units obtained
Other cash paid concerninginvesting activities
Subtotal of cash outflow from investingactivities
848,621,844.32
938,141,146.15
Net cash flows arising from investingactivities
-88,258,570.72
54,510,161.97
III. Cash flows arising from financingactivities
Cash received from absorbinginvestment
20,000,000.00
Including: Cash received fromabsorbing minority shareholders’investment by subsidiaries
Cash received from loans
158,020,000.00
Other cash received concerningfinancing activities
Subtotal of cash inflow from financingactivities
178,020,000.00
Cash paid for settling debts 2,952,372.85
198,814,887.55
Cash paid for dividend and profitdistributing or interest paying
21,825,829.24
4,756,413.09
Including: Dividend and profit ofminority shareholder paid bysubsidiaries
Other cash paid concerningfinancing activities
Subtotal of cash outf
activities
24,778,202.09
| low from financing |
203,571,300.64
Net cash flows arising from financingactivities
-24,778,202.09
-25,551,300.64
IV. Influence on cash and cashequivalents due to fluctuation inexchange rate
88.42
9.84
V. Net increase of cash and cashequivalents
-95,730,362.19
56,392,930.47
Add: Balance of cash and cashequivalents at the period -begin
400,668,257.81
142,848,120.69
VI. Balance of cash and cashequivalents at the period -end
304,937,895.62
199,241,051.16
6. Cash Flow Statement of Parent Company
In RMBItem 2020 semi-annual 2019 semi-annualI. Cash flows arising from operatingactivities:
Cash received from sellingcommodities and providing laborservices
4,151,391.53
14,820,726.01
Write-back of tax received 0
Other cash received concerningoperating activities
40,826,847.87
6,580,839.48
Subtotal of cash inflow arising fromoperating activities
44,978,239.40
21,401,565.49
Cash paid for purchasingcommodities and receiving laborservice
239,375.15
Cash paid to/for staff and workers 11,892,984.82
7,850,812.96
Taxes paid 54,859,179.71
1,157,332.91
Other cash paid concerningoperating activities
46,163,081.37
14,812,259.31
Subtotal of cash outflow arising fromoperating activities
113,154,621.05
23,820,405.18
Net cash flows arising from operatingactivities
-68,176,381.65
-2,418,839.69
II. Cash flows arising from investingactivities:
Cash received from recoveringinvestment
307,000,000.00
500,000,000.00
Cash received from investmentincome
10,641,433.09
3,996,094.69
Net cash received from disposal offixed, intangible and other long-termassets
Net cash received from disposal ofsubsidiaries and other units
Other cash received concerninginvesting activities
20,870,000.00
Subtotal of cash inflow from investingactivities
317,641,433.09
524,866,094.69
Cash paid for purchasing fixed,intangible and other long-term assets
17,257,856.83
7,675,914.33
Cash paid for investment 267,000,000.00
487,000,000.00
Net cash received fromsubsidiaries and other units obtained
Other cash paid concerninginvesting activities
Subtotal of cash outflow from investingactivities
284,257,856.83
494,675,914.33
Net cash flows arising from investing33,383,576.26
30,190,180.36
activitiesIII. Cash flows arising from financingactivities
Cash received from absorbinginvestment
Cash received from loans
143,000,000.00
Other cash received concerningfinancing activities
Subtotal of cash inflow from financingactivities
143,000,000.00
Cash paid for settling debts
143,000,000.00
Cash paid for dividend and profitdistributing or interest paying
18,104,449.44
3,670,662.11
Other cash paid concerningfinancing activities
| Subtotal of cash outflow from financing |
activities
18,104,449.44
146,670,662.11
Net cash flows arising from financingactivities
-18,104,449.44
-3,670,662.11
IV. Influence on cash and cashequivalents due to fluctuation inexchange rate
V. Net increase of cash and cashequivalents
-52,897,254.83
24,100,678.56
Add: Balance of cash and cashequivalents at the period -begin
173,702,343.04
62,172,486.14
VI. Balance of cash and cashequivalents at the period -end
120,805,088.21
86,273,164.70
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Item
2020 semi-annualOwners’ equity attributable to the parent Company
Minorityinteres
ts
Totalowners
’
equity
capita
l
Other
| Share | equity instrument | Capital |
reserve
Less:
Invent
oryshares
Othercomprehensi
ve
| incom |
Reasonablereserve
Surplu
sreserve
Provision ofgeneral riskRetain
edprofit
Other
SubtotalPreferred
stock
Perpe
tual
| stock | capit |
Other
alsecur
e
| ities | ||
| I. Balance at the end of the last |
year
431,058,32
0.00
431,449,554.
26,422
.00
21,007,488.7
387,423,510.
1,270,965,29
6.02
68,247,700.7
1,339,212,99
6.79
| Add: Changes of |
accounting
| policy |
| Error correction of the last period |
Enterprise
| combine under the same control |
Other
| II. Balance at the beginning of |
this year
431,058,32
0.00
431,449,554.
26,422
.00
21,007,488.7
387,423,510.
1,270,965,29
6.02
68,247,700.7
1,339,212,99
6.79
| III. Increase/ Decrease in this year (Decrease is listed with “-”) |
7,490,
536.34
7,490,
536.34
-2,545,
707.32
4,944,
829.02
| (i) Total |
comprehensiveincome
25,594,985.7
25,594,985.7
1,175,
672.48
26,770,658.2
| (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 |
withshare-based
| payment |
4. Other
distribution
| (III) Profit |
-18,104,449.
-18,104,449.
-3,721,
379.80
-21,825,829.
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or |
shareholders)
-18,104,449.
-18,104,449.
-3,721,
379.80
-21,825,829.
4. Other
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital |
reserves
| conversed to capital (share capital) | |||||||||||||||
| 2. Surplus |
reserves
| conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over |
retainedearnin
the defined
| benefit plans |
5．Carry-overretainedearnings fromothercomprehensive
| income |
6. Other
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report |
period
2. Usage i
report period
| n the |
(VI)Others
| IV. Balance at the end of the |
report period
431,058,32
0.00
431,449,554.
26,422.00
21,007,488.7
394,914,047.
1,278,455,83
2.36
65,701,993.4
1,344,157,82
5.81
Last period
In RMB
Item
2019 semi-annualOwners’ equity attributable to the parent Company
Minorit
yinterest
sTotal
owners’
equity
owners’Share
capita
l
Other
| Share | equity instrument | Capital |
reserve
Less:
Invent
oryshares
Othercomprehensi
veincom
e
Reasonablereserve
Surplu
sreserve
Provision ofgeneral risk
Retain
edprofit
Other
Subtot
alPreferredstock
Perp
| etual |
capit
alsecur
Other
| ities | |||
| I. Balance at the end of the |
last year
297,281,60
0.00
565,22
6,274.
26,422
.00
3,139,
918.14
184,53
5,322.
1,050,
209,53
7.35
49,072,
678.52
1,099,282,215.
accounting
| policy |
Enterprisecombine
| Error correction of the last period |
| under the same control |
Other
of this year
297,281,60
0.00
565,22
6,274.
26,422
.00
3,139,
918.14
184,53
5,322.
1,050,
209,53
7.35
49,072,
678.52
1,099,282,215.
| II. Balance at the beginning |
| III. Increase/ Decrease in this year (Decrease is listed with “-”) |
133,776,72
0.00
-133,7
76,720.00
44,779
,948.6
44,779
,948.6
20,202,
550.66
64,982,
499.26
comprehensiveincome
44,779
,948.6
44,779
,948.6
202,550.66
44,982,
499.26
| (i) Total |
| (ii) Owners’ devoted and decreased |
20,000,
000.00
20,000,
000.00
1.Common
| capital |
| shares invested by shareholders |
20,000,
000.00
20,000,
000.00
equity
| instruments |
withshare-based
| payment |
4. Other
1. W
| (III) Profit distribution |
| ithdrawal of surplus reserves |
| 2. Withdrawal of general risk provisions |
| 3. Distribution for owners (or shareholders) |
4. Other
forwardinternal
| owners’ equity |
133,776,72
0.00
-133,7
76,720.00
reserves
| conversed to capital (share capital) |
133,776,72
0.00
-133,7
76,720.00
reserves
| conversed to capital (share capital) |
| 3. Remedying loss with surplus reserve |
| 4．Carry-over |
retainedearningsfrom thedefined
retainedearnings fromothercomprehensive
| income |
6. Other
| (V) Reasonable reserve |
| 1. Withdrawal in the report |
period
report period
(VI)Others
2. Usage in the
IV. Balance atthe end of the
report period
431,058,32
0.00
431,44
9,554.
26,422
.00
3,139,
918.14
229,31
5,271.
1,094,
989,48
5.95
69,275,
229.18
1,164,264,715.
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item
2020 semi-annualSharecapital
IV. Balance atthe end of theOther equity instrument
Capitalpublicreserve
Less:
Inventory shares
Othercompreh
ensiveincome
Reasona
blereserve
Surplusreserve
Retained profit
| Other equity instrument | ||
Other
Totalowners’equityPreferr
edstock
Perpet
ualcapitalsecuriti
Other
| es | ||
| I. Balance at the end of the last |
year
431,058,320.0
428,256,
131.23
21,007,4
88.73
179,916,021.6
1,060,237,
961.56
| Add: Changes of |
accounting
| policy |
| Error correction of the last period |
Other
| II. Balance at the beginning of this |
year
431,058,320.0
428,256,
131.23
21,007,4
88.73
179,916,021.6
1,060,237,
961.56
| III. Increase/ |
-3,089,
-3,089,715
y
| ear (Decrease is listed with “-”) |
715.57
.57
comprehensive
| income |
15,014,
733.87
15,014,73
3.87
| (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
-18,104,449.44
-18,104,44
9.44
1. Withdrawal o
| f surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) |
-18,104,449.44
-18,104,44
9.44
3. Other
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital |
reserves
| conversed to capital (share capital) | ||||||||||||
| 2. Surplus |
reserves
| conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings |
from the defined
| benefit plans |
from othercomprehensive
| income |
6. Other
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in |
the report period
| 2. Usage in the |
report period
(VI)Others
| IV. Balance at the end of the |
report period
431,058,320.0
428,256,
131.23
21,007,4
88.73
176,826,306.0
1,057,148,
245.99
Last period
In RMB
Item
2019 semi-annualSharecapital
Other equity
| instrument | |
Capitalpublicreserve
Less:
Inventory shares
Othercomprehensiveincome
Reasonable reserve
| Surplus |
reserve
Retained
profit
Other
Totalowners’equityPreferr
edstock
Perpet
ual
securit
| ies |
Other
e
| nd of the last |
year
297,281,600.
562,032,851.23
3,139,9
18.14
18,545,85
0.31
881,000,21
9.68
| Add: Changes of |
accounting
| policy |
| Error correction of the last period |
Other
| II. Balance at the beginning |
of this year
297,281,600.
562,032,851.23
3,139,9
18.14
18,545,85
0.31
881,000,21
9.68
| III. Increase/ Decrease in this year (Decrease is listed with “-”) |
133,776,720.
-133,776,720.0
16,298,44
9.15
16,298,449.
comprehensive
| income |
16,298,44
9.15
16,298,449.
| (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 |
owne
withshare-based
| payment |
4. Other
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) |
3. Other
| (IV) Carrying |
for
owners’ equity
133,776,720.
| ward internal |
-133,776,720.0
| 1. Capital |
reserves
133,776,720.
| conversed to capital (share capital) |
-133,776,720.0
| 2. Surplus |
reserves
| conversed to capital (share capital) | ||||||||||||
| 3. Remedying |
lo
| ss with surplus reserve | ||||||||||||
| 4．Carry-over |
retainedearnings from
| the defined |
| benefit plans |
| 5．Carry-over |
retainedearnings fromothercomprehensive
| income |
6. Other
| (V) Reasonable reserve |
1. Withd
period
| rawal in the report | ||||||||||||
| 2. Usage in the |
report period
(VI)Others
| IV. Balance at the end of the |
report period
431,058,320.
428,256,131.23
3,139,9
18.14
34,844,29
9.46
897,298,66
8.83
III. Basic situation of the company
Shenzhen Tellus Group Co., Ltd. (hereinafter referred to as Company or the Company), as authorized by the replyrelating to Shenzhen Machinery Industry Company transforming to Shenzhen Tellus Machinery Co.,Ltd.(SFBF[1991]1012) issued by the Office of Shenzhen People Government, Shenzhen Machinery IndustryCompany was transformed to Shenzhen Tellus Machinery Co., Ltd.Registered in Shenzhen Administration forIndustry and Commerce on November 10, 1986, Headquartered in Shenzhen, Guangdong Province.The companynow holds a business license with a unified social credit code of 91440300192192210U,the registered capital is431,058,320.00 yuan, and the total number of shares is 431,058,320 shares (each with a par value of 1 yuan).
Among them, the tradable shares subject to sales restrictions: 0 A shares and 0 B shares; 392,778,320 A shares and38,280,000 B shares subject to sales restrictions.The company’s shares were listed on the Shenzhen StockExchange on June 21, 1993.The company belongs to the wholesale industry, and its main business activitiesinclude automobile sales, automobile maintenance and testing, jewelry sales, property leasing and services. Thisfinancial statement is approved for disclosure by resolution from the Board dated 26 August 2020.There are 16 subsidiaries including Shenzhen Zhongtian Industrial Co,. Ltd., Sichuan Tellus Jewelry Tech. Co.,Ltd and Shenzhen Huari Toyota Auto Sales Service Co., Ltd included in the consolidate scope of the Company inthe Period, found more in the explanation carry in Note VII and Note VIII.
IV. Basis Preparation of the Financial Statements
1. Preparation base
Financial statement of the Company is prepared on a going concern basis.
2. Going concern
The Company does not have any events or circumstances that would cause significant doubt about its ability tocontinue as a going concern within 12 months from the end of the reporting period.V. Important accounting policy & accounting estimationSpecific accounting policies and estimation attention:
Important tips: according to the characteristics of the actual production and operation, the Company formulatedspecific accounting policies and estimation for transactions or events such as impairment of financial instruments,depreciation of fixed assets, amortization of intangible assets and revenue recognition.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard forBusiness Enterprise, which truly and completely reflect the financial status of the Company, as well as theoperation results and cash flows.
2. Accounting period
Accounting period of the Company is falls to the range starting from 1 January to 31 December.
3. Operating cycle
Operating cycle of the Company’s business is relatively short, and 12 months is taken as the liquidity divisionstandard of assets and liabilities.
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment method for business combination under the same control and business
combination not under the same control
1. Accounting treatment method for business combination under the same control
The assets and liabilities acquired by the company in a business combination shall be measured according to the
book value of the combined party in the consolidated financial statements of the ultimate controlling party on thecombination date. The company adjusts the capital reserve according to the difference between the book valueshare of the combined party’s owner’s equity in the ultimate controlling party’s consolidated financial statementsand the book value of the combined consideration paid or the total face value of the issued shares; if the capitalreserve is insufficient to offset, adjust the retained earnings.
2. Accounting treatment method for business combination not under the same control
The difference between the company’s combined cost and the fair value share of the acquiree’s identifiable netassets acquired in the combination on the purchase date is recognized as goodwill; if the combination cost is lessthan the fair value share of the acquiree’s identifiable net assets acquired in the combination, review the fair valueof the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the combinationcost in the first place. After the review, if the combination cost is still less than the fair value of the acquiree’sidentifiable net assets obtained in the combination, the difference is included in the current profit and loss.
6. Methods for preparation of consolidated financial statements
All subsidiaries controlled by the parent company are included in the consolidation scope of the consolidatedfinancial statements. The consolidated financial statements are based o the financial statements of the parentcompany and its subsidiaries, and prepared by the parent company in accordance with the Accounting Standardsfor Business Enterprise No.33- Consolidated Financial Statement according to other relevant information.
7. Classification of joint venture arrangement and accounting for joint operations
1. Joint venture arrangements are divided into joint operations and joint ventures.
2. When the Company is a joint venture party of a joint venture arrangement, recognizes its proportion of interests
in joint operation as related to the Company:
(1) To recognize separately-held assets and jointly-held assets under its proportion;
(2) To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
(3) To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
(4) To recognize revenue from disposal of the output under the proportion;
(5) To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
8. Recognition standards for cash and cash equivalents
The cash carry in cash flow statement refers to the stock cash and deposits available for payment at any time.Cash equivalent refers to the investment featuring with the following characters: short term, active liquidity, easyto convert to already-known cash and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
1.Conversion of foreign currency business
When foreign currency transactions are initially recognized, the spot exchange rate on the transaction date shall beused to convert the foreign currency transaction into RMB amount.On the balance sheet date, foreign currencymonetary items are converted at the spot exchange rate on the balance sheet date. The exchange difference arisingfrom different exchange rates, except for the exchange difference of the principal and interest of foreign currencyspecial borrowings related to the acquisition and construction of assets that meet the conditions for capitalization,is included in the current profit and loss; as for the foreign currency non-monetary items measured by historicalcost, conversion is made with the spot exchange rate as of the business day, with no change in RMB amount; asfor the foreign currency non-monetary items measured by fair value, the amount is then converted into RMBaccording to the spot exchange rate as of the confirmation day for fair value. And the conversion differenceoccurred is recorded into current gains/losses or other comprehensive income.
2. Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in the balancesheet; as for the items in statement of owners’ equity except for “Retained profit”, conversion is made pursuant tothe spot exchange rate of business day; items of income and expenses in the profit statement shall be converted atthe spot exchange rate on the date of transaction. The balance of foreign currency financial statements generatedaccording to the above transaction shall be included in other comprehensive income.
10. Financial instruments
1. Categories of financial assets and financial liabilities
At initial recognition, financial assets are classifies into three types: (1) the financial assets measured at amortizedcost; (2) the financial assets measured at fair value and whose changes are included in other comprehensiveincome; and (3) the financial assets measured at fair value and whose changes are included in current gain/loss.
At the time of initial recognition, financial liabilities are divided into the following four categories: (1) Financialliabilities measured at fair value and whose changes are included in the current profit and loss; (2) Financialliabilities formed as the transfer of financial assets does not meet the conditions for derecognition or continues tobe involved in the transferred financial assets; (3) Financial guarantee contracts that do not belong toabove-mentioned (1) or (2), and loan commitments that do not belong to above-mentioned (1) and are loaned at alower-than-market interest rate; (4) Financial liabilities measured at amortized cost.
2. Recognition basis, measurement method and derecognition conditions of financial assets and financial
liabilities
(1) Recognition basis and initial measurement method of financial assets and financial liabilities
When a company becomes a party to a financial instrument contract, a financial asset or financial liability isrecognized. When financial assets or financial liabilities are initially recognized, they are measured at fair value;for financial assets and financial liabilities that are measured at fair value and whose changes are included in the
current profits and losses, the relevant transaction costs are directly included in the current profits and losses; forother types of financial assets or financial liabilities, related transaction costs are included in the initial recognitionamount. However, if the account receivable initially recognized by the company does not contain a significantfinancing component or the company does not consider the financing component in a contract that is less than oneyear, the initial measurement is made at the transaction price.
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The subsequent measurement is carried out according to the amortized cost by adopting the effective interestmethod. The gains or losses arising from financial assets that are measured at amortized costs and are not part ofany hedging relationship are included in the current profits and losses when they are derecognized, reclassified,amortized or recognized as impairment in accordance with the effective interest method.
2) Debt instrument investment measured at fair value and whose changes are included in other comprehensive
incomeUse fair value for subsequent measurement. Interest, impairment losses or gains and exchange gains and lossescalculated by using the effective interest rate method are included in the current profits and losses, and other gainsor losses are included in other comprehensive income. When derecognized, the accumulated gains or lossespreviously included in other comprehensive income shall be transferred from other comprehensive income andincluded in the current profits and losses.
3) Equity instrument investment measured at fair value and whose changes are included in other comprehensive
incomeUse fair value for subsequent measurement. Dividends obtained (except those that are part of the recovery ofinvestment costs) are included in the current profits and losses, and other gains or losses are included in othercomprehensive income. When derecognized, the accumulated gains or losses previously included in othercomprehensive income are transferred from other comprehensive income and included in retained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profits and losses
Use fair value for subsequent measurement, and the resulting gains or losses (including interest and dividendincome) are included in the current profits and losses, unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement methods of financial liabilities
1) Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Such financial liabilities include transactional financial liabilities (including derivative instruments that arefinancial liabilities) and financial liabilities designated to be measured at fair value and whose changes areincluded in the current profits and losses. For such financial liabilities, subsequent measurement is made at fairvalue. Changes in the fair value of financial liabilities designated to be measured at fair value and whose changesare included in the current profits and losses caused by changes in the company’s own credit risk are included inother comprehensive income, unless the treatment will cause or enlarge the accounting mismatch in the profitsand losses. Other gains or losses arising from such financial liabilities (including interest expenses,except forchanges in fair value due to changes in the company's own credit risk) are included in the current profits andlosses, unless the financial liabilities are part of the hedging relationship. When derecognized, the accumulated
gains or losses previously included in other comprehensive income are transferred from other comprehensiveincome and included in retained earnings.
2) The transfer of financial assets does not meet the conditions for derecognition or continues to be involved in
financial liabilities formed by the transferred financial assetsMeasure in accordance with the relevant provisions of the "Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets".
3) Financial guarantee contracts that do not belong to 1) or 2) above, and loan commitments that do not belong to
1) above and loan at interest rates lower than market interest rates
After the initial recognition, the subsequent measurement shall be carried out according to the higher of thefollowing two amounts: ① The amount of loss provisions determined in accordance with the impairmentprovisions of financial instruments; ② The balance after deducting the accumulated amortization determined inaccordance with relevant regulations from the initial recognition amount.
4) Financial liabilities measured at amortized cost
Measure at amortized cost by using the effective interest method. The gains or losses arising from financialliabilities that are measured at amortized cost and are not part of any hedging relationship are included in thecurrent profits and losses when they are derecognized and amortized according to the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) When meeting one of the following conditions, the financial assets are derecognized:
① The contractual right to receive cash flow of financial assets has been terminated;
② The financial assets have been transferred and the transfer meets the requirements of the "Accounting
Standards for Business Enterprises No. 23-Transfer of Financial Assets" on the derecognition of financial assets.
2) When the current obligation of the financial liability (or part of it) has been discharged, the financial liability
(or part of the financial liability) shall be derecognized accordingly.
3. Recognition basis and measurement method of financial asset transfer
If the company transfers almost all the risks and rewards related to the ownership of a financial asset, derecognizethe financial asset, and separately recognize the rights and obligations arising or retained during the transfer asassets or liabilities; if almost all the risks and rewards related to the ownership of the financial assets areretained,continue to recognize the transferred financial assets. If the company neither transfers nor retains almostall the risks and rewards related to the ownership of the financial assets, the following situations shall be dealtwith respectively: (1) If the control of the financial assets is not retained, derecognize the financial assets, and therights and obligations generated or retained during the transfer shall be separately recognized as assets orliabilities; (2) If the control of the financial assets is retained, the relevant financial assets are recognizedaccording to the degree of continued involvement in the transferred financial assets, and the relevant liabilities arerecognized accordingly.If the overall transfer of financial assets meets the conditions for derecognition, the difference between thefollowing two amounts is included in the current profit and loss: (1) the book value of the transferred financialassets on the date of derecognition; (2) the sum of the consideration received due to the transfer of financial assetsand the amount corresponding to the derecognized portion of the accumulated amount of fair value changes
originally directly included in other comprehensive income (the financial assets involved in transfer areinvestments in debt instruments that are measured at fair value and whose changes are included in othercomprehensive income). If a part of the financial asset is transferred, and the entire transferred part meets theconditions for derecognition, the book value of the entire financial asset before the transfer will be allocatedbetween the derecognition part and the part continuing to recognize according to their respective relative fairvalues on the transfer date, and include the difference between the following two amounts in the current profitsand losses: (1) the book value of the derecognized part; (2) the sum of the consideration of the derecognized partand the amount corresponding to the derecognized portion of the accumulated amount of fair value changesoriginally directly included in other comprehensive income (the financial assets involved in transfer areinvestments in debt instruments that are measured at fair value and whose changes are included in othercomprehensive income)..
4. Methods for determining the fair value of financial assets and financial liabilities
The company uses valuation techniques that are applicable under current circumstances and have sufficient dataand other supporting information to determine the fair value of relevant financial assets and financial liabilities.The company divides the input values used by valuation techniques into the following levels and uses them insequence:
(1) The first-level input value is the unadjusted quotation of the same asset or liability in the active market that can
be obtained on the measurement date;
(2) The second-level input value is the directly or indirectly observable input value of related assets or liabilities
other than the first-level input value, including the quotes of similar assets or liabilities in the active market; thequotes of the same or similar assets or liabilities in the inactive market; other observable input values other thanquotes, such as interest rates and yield curves that are observable during the normal quote interval;market-validated input values, etc.;
(3) The third-level input value is the unobservable input value of the relevant asset or liability, including interest
rates that cannot be directly observed or verified by observable market data, stock volatility, future cash flows ofabandoned obligations assumed in business combinations, financial forecasts made by using own data, etc.
5. Impairment of financial instruments
(1) Impairment measurement and accounting treatment of financial instruments
The company uses expected credit losses as the basis, and makes impairment and recognizes loss provisions forfinancial assets measured at amortized cost, investment in debt instruments measured at fair value with changesincluded in other comprehensive income, lease receivables, loan commitments other than financial liabilities thatare classified as financial liabilities measured at fair value with changes included in the current profits and losses,financial liabilities that are not measured at fair value and whose changes are included in the current profits andlosses, or financial guarantee contracts of financial liabilities that do not meet the conditions for derecognition orcontinue to be involved in the transferred financial assets.Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted on therisk of default. Credit loss refers to the difference between all contractual cash flows discounted by the companyat the original actual interest rate and receivable under the contract and all cash flows expected to be received, that
is, the present value of all cash shortages. Among them, for the financial assets purchased or originated by thecompany that have been credit-impaired, they are discounted according to the credit-adjusted actual interest rateof the financial assets.For purchased or derived financial assets that have been credit-impaired, the company only recognizes thecumulative changes in expected credit losses during the entire duration after initial recognition as loss provisionson the balance sheet date.For accounts receivable that do not contain a significant financing component or the company does not considerthe financing component of a contract that does not exceed one year, the company uses the simplifiedmeasurement method to measure the loss provisions at the amount equivalent to the expected credit losses duringthe entire duration.For lease receivables and accounts receivable that contain major financing components, the company uses thesimplified measurement method to measure loss provisions at the amount equivalent to expected credit lossesduring the entire duration.For a financial asset other than the above measurement methods, the company assesses on each balance sheet datewhether its credit risk has increased significantly since the initial recognition. If the credit risk has increasedsignificantly since the initial recognition, the company measures the loss provisions at the amount of expectedcredit losses during the entire duration; if the credit risk has not increased significantly since the initial recognition,the company measures the loss provisions based on the amount of expected credit loss of the financial instrumentin the next 12 months.The company uses available reasonable and evidence-based information, including forward-looking information,and determines whether the credit risks of financial instruments have increased significantly since the initialrecognition by comparing the risk of default of financial instruments on the balance sheet date with the risk ofdefault on the date of initial recognition.On the balance sheet date, if the company judges that a financial instrument only has a low credit risk, it isassumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.The company assesses expected credit risks and measures expected credit losses based on individual financialinstrument or a combination of financial instruments. When based on a combination of financial instruments, thecompany divides financial instruments into different combinations based on common risk characteristics.The company re-measures expected credit losses on each balance sheet date, and the resulting increase in lossreserves or the amount reversed is included in the current profits and losses as impairment losses or gains. For afinancial asset measured at amortized cost, the loss provisions offset against the book value of the financial assetlisted in the balance sheet; for debt investments measured at fair value and whose changes are included in othercomprehensive income, the company recognizes the loss provisions in other comprehensive income, and does notdeduct the book value of the financial asset.
(2) Financial instrument that assesses expected credit risks and measures expected credit losses by portfolio
Item Basis for determining the portfolio
Measuring methods for expected credit
losses
-
| related transaction receivable in consolidate scope |
With reference to hist
| Nature of the account | orical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate within the |
next 12 months or the entire duration
- dividend receivable
| Other account receivable |
| Other account receivable |
- account age
(3)Account receivable with expected credit loss measured at portfolio
1) Specific portfolio and methods on measuring the expected credit losses
Item Basis for determining the portfolio Measuring methods for expected credit
losses
Account age
Account receivable
—account age account age
| Account receivable | With reference to historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated by the comparison table prepared between the account age of receivable and the expected credit loss rate within the entire duration |
- Jewelry sales business
Account receivable wit
concerned
| h sales of jewelry | With reference to historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate within the entire duration |
2) Account receivable—comparison table between the account age (in portfolio) and expected credit loss rate
for the whole duration
Account age Expected credit loss rate of account
receivable (%)
| Within one ye |
ar (inclusive, the same below)
| 1 | |
| 1 |
-2 years
-3 years
| 2 | 20 |
| Over |
3 years
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet and do not offset each other.However, if the following conditions are met at the same time, the company will list the net amount after
offsetting each other in the balance sheet: (1) The company has the statutory right to offset the recognized amount,and this statutory right is currently enforceable; 2) The company plans to settle on a net amount, or realize thefinancial assets and liquidate the financial liabilities at the same time.For the transfer of financial assets that does not meet the conditions for derecognition, the company does notoffset the transferred financial assets and related liabilities.
11.Note receivable
Not applicable
12.Account receivable
1. Account receivable with bad debt provision accrual on a single basis
| Provision for bad debts on single basis: | Bad |
debt provision shall be made on a single basis when there is evidence that the credit
| risk of a single item of account receivable is large. | |
| Accrual method for bad debt provision: |
rding to the
| difference between the present value of its future cash flow and its book value |
2. Accounts receivable with provision for bad debts according to the combination of expected credit risk
characteristicsExcept for the accounts receivable with bad debt provision accrual on a single basis, the accounts receivable aregrouped according to the similarity and correlation of credit risk characteristics. These credit risks usually reflectthe debtor's ability to repay all due amounts in accordance with the contractual terms of the assets, and are relatedto the calculation of the future cash flow of the asset under inspection. The Group uses the aging of accountsreceivable as the combination of expected credit risk characteristics to make provisions for bad debts based on theactual credit losses of previous years and the forward-looking information of the current year. The accountingpolicies for bad debt provisions are as follows:
Account age Expected credit loss rate of account receivable (%)Within one year 11-2 years
2-3 years
Over 3 years
13. Account receivable financing
Not applicable
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
1. Other account receivable with bad debt provision accrual on a single basis
| Provision for bad debts on single basis: | Bad debt provision shall be made on a single basis when there is evidence that the credit risk of a single item of other account receivable is large. |
ccrual method for bad debt provision:
| A | Conduct impairment tests separately, and make provision for bad debts according to the difference between the present value of its future cash flow and its book value |
2. Other accounts receivable with provision for bad debts according to the combination of expected credit risk
characteristicsExcept for the other accounts receivable with single provision for bad debts, the other receivable are groupedaccording to the similarity and correlation of credit risk characteristics. These credit risks usually reflect thedebtor's ability to repay all due amounts in accordance with the contractual terms of the assets, and are related tothe calculation of the future cash flow of the asset under inspection. The Group uses the aging of other accountsreceivable as the combination of expected credit risk characteristics to make provisions for bad debts based on theactual credit losses of previous years and the forward-looking information of the current year. The accountingpolicies for bad debt provisions are as follows:
Account age Expected credit loss rate of other account receivable (%)Within one year 11-2 years
2-3 years
Over 3 years
15. Inventory
1. Classification
Inventory includes finished products or commodities held for sale in daily activities, products in the productionprocess, materials and supplies consumed in the production process or the process of providing labor services, etc.
2. Valuation methods for delivery of inventory
The delivery of inventory shall be priced individually on a first-in, first-out basis.
3. Recognition standards of the net realizable value for inventory
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and provision forimpairment of inventories is made based on the difference between the cost of a single inventory/inventorycategory and the net realizable value. The net realizable value of the inventory directly used for sale is determinedin the normal production and operation process at the estimated selling price of the inventory minus the estimated
sales expenses and related taxes. The net realizable value of the inventory that needs to be processed is determinedby the estimated selling price of the finished product produced after subtracting the estimated cost, estimated salesexpenses and related taxes and fees at the time of completion in the normal production and operation process. Onthe balance sheet date, for part of the same inventory has a contract price agreement while the other part does nothave a contract price, the net realizable value shall be determined separately, and the corresponding cost shall becompared to respectively determine the amount of provision or reversal for inventory falling price reserves.
4. Inventory system
Inventory system is the perpetual inventory system.
5. Amortization of low-value consumables and packaging materials
(1) Low-value consumables
Amortization is carried out according to the number of times of use.
(2) Wrappage
Amortization is carried out according to the number of times of use.
16. Contractual asset
Not applicable
17. Contract cost
Not applicable
18. Assets held for sale
1. Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions asheld-for-sale: 1)according to the practice of selling this type of assets or disposal groups in a similar transaction,the non-current assets or disposal group can be sold immediately at its current condition; 2)The sale is likely tooccur, that is, the Company has made resolution on the selling plan and obtained definite purchase commitment,the selling is estimated to be completed within one year.
The non-current assets or disposal group acquired by the company specifically for resale shall be classified as heldfor sale on the date of acquisition if meets the condition of “expected to complete the sale within one year” on theacquisition date, and is likely to meet other classification conditions of held for sale in the short term (usually 3months) .Due to one of the following reasons beyond the company’s control, the transaction among non-related partiescannot be completed within one year, and the company still promises to sell non-current assets or disposal groups,continue to classify non-current assets or disposal groups as held for sale: 1) The buyer or other parties
accidentally set the conditions that caused the sale to be delayed. The company has taken timely action againstthese conditions and is expected to be able to smoothly resolve the delay factors within one year from the settingof the conditions that caused the sale to be delayed; 2) Rare circumstances have caused the non-current assets heldfor sale or the disposal group to fail to complete the sale within one year. The company has taken necessarymeasures to address these new situations in the first year and has re-satisfied the classification conditions of theheld for sale categories.
2. Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When initially measuring and remeasuring the non-current assets or disposal groups held for sale on the balancesheet date, if the book value is higher than the net value of fair value minus selling expenses, the book value shallbe written down to the net amount after deducting selling expenses from fair value, the written-down amount isrecognized as asset impairment loss, and included in the current profits and losses, and provision for impairmentof assets held for sale is made.For non-current assets or disposal groups classified as held-for-sale categories on the acquisition date, comparethe initial measurement amount assuming that they are not classified as held-for-sale with the net amount afterdeducting selling expenses from fair value at the initial measurement, and measure the lower of the two. Exceptfor the non-current assets or disposal groups obtained in a business combination, the difference arising from thenet amount of the non-current assets or disposal groups after deducting selling expenses from fair value and usedas the initial measurement amount is included in the current profit and loss.For the amount of asset impairment losses confirmed by the disposal group held for sale, the book value of thegoodwill in the disposal group is first offset, and then the book value is offset in proportion based on theproportion of the book value of each non-current asset in the disposal group.Non-current assets held for sale or non-current assets in the disposal group are not depreciated or amortized, andinterest and other expenses on liabilities in the disposal group held for sale continue to be recognized.
2) Accounting treatment of asset impairment loss reversal
If the net amount of the fair value of the non-current assets held for sale increases after subtracting the sellingexpenses on the subsequent balance sheet date, the previously written-down amount shall be recovered andreversed within the amount of the asset impairment losses recognized after being classified as held for sale, andthe reversed amount is included in the current profits and losses. Asset impairment losses recognized before beingclassified as held for sale shall not be reversed.On the subsequent balance sheet date, if the net amount of the fair value of the disposal group held for saleincreases after subtracting the selling expenses, the previously written-down amount shall be recovered andreversed within the amount of the asset impairment losses recognized as non-current assets after being classifiedas held for sale, and the reversed amount is included in the current profits and losses. The book value of thededucted goodwill and the asset impairment losses recognized before the non-current assets are classified as heldfor sale shall not be reversed.For subsequent reversal of the asset impairment losses confirmed by the disposal group held for sale, its bookvalue is increased in proportion based on the proportion of the book value of each non-current asset in the disposal
group except for the goodwill.
3) Accounting treatment no longer being classified as held for sale and being derecognized
When non-current assets or disposal groups no longer continue to be classified as held for sale as they no longermeet the classification conditions of the held for sale category or non-current assets are removed from the held forsale disposal group, measure based on the lower of the following two: a. Book value before being classified asheld for sale, the amount adjusted according to the depreciation, amortization, or impairment that should havebeen recognized under the assumption that it is not classified as held for sale; b. Recoverable amount.When derecognizing non-current assets or disposal groups held for sale, the unrecognized gains or losses shall beincluded in the current profits and losses.
19. Creditors’ investment
Not applicable
20. Other creditors’ investment
Not applicable
21. Long-term account receivable
Based on whether its credit risk has increased significantly since its initial recognition, the Company uses anamount equivalent to expected credit losses in the next 12 months or the entire duration to measure long-termreceivable impairment losses. Except for long-term receivables whose credit risk is assessed individually,impairment losses are accrued based on their credit risk characteristics.
22. Long-term equity investment
1. Judgment of joint control and significant influence
According to the relevant agreement, there is mutual control over an arrangement, and the relevant activities ofthe arrangement must be agreed by the participants who share the control rights before making decisions, and it isdeemed as joint control. Having the power to participate in decision-making on the financial and operatingpolicies of the invested entity, but not being able to control or jointly control the formulation of these policies withother parties, it is deemed as a significant influence.
2. Determination of investment cost
(1) In the case of a business combination under the same control, if the combining party pays cash, transfers
non-cash assets, assumes debts, or issues equity securities as the merger consideration, the share of the book valueof the acquired owner’s equity of the combined party in the consolidated financial statements of the ultimatecontrolling party shall be used as its initial investment cost. The difference between the initial investment cost of
long-term equity investment and the book value of the combined consideration paid or the total face value of theissued shares shall adjust the capital reserve; if the capital reserve is insufficient to offset, adjust the retainedearnings.The company realizes the long-term equity investment formed by the business combination under the samecontrol step by step through multiple transactions, and judges whether it is a "package deal". If it is a "packagedeal", each transaction shall be accounted for as a transaction to obtain control for accounting treatment. If it is nota "package deal", on the combining date, the initial investment cost shall be determined based on the share of thebook value of the combined party's net assets in the ultimate controlling party's consolidated financial statementsafter the combination. The difference between the initial investment cost of the long-term equity investment onthe combining date and the book value of the long-term equity investment before the combination plus the sum ofthe book value of the consideration newly paid for further obtaining shares on the combining date shall adjust thecapital reserve; if the capital reserve is insufficient to offset , adjust the retained earnings.
(2) In the case of a business combination not under the same control, the fair value of the combined consideration
paid on the purchase date shall be the initial investment cost.The company realizes the long-term equity investment formed by business combination not under the samecontrol step by step through multiple transactions, and separates individual financial statements and consolidatedfinancial statements for relevant accounting treatment:
1) In individual financial statements, the sum of the book value of the equity investment originally held plus the
cost of the newly increased investment is used as the initial investment cost calculated by the cost method.
2) In the consolidated financial statements, judge whether it is a "package deal". If it is a "package deal", each
transaction shall be accounted for as a transaction to obtain control for accounting treatment. If it is not a "packagedeal", the equity of the acquiree held before the purchase date shall be remeasured at the fair value of the equityon the purchase date, and the difference between the fair value and its book value shall be included in the currentinvestment income.If the equity held by the acquiree before the purchase date involves other comprehensive income calculated by theequity method, the other comprehensive income related to it shall be converted to the current income on thepurchase date, except for other comprehensive income arising from changes in net liabilities or net assets ofdefined benefit plans remeasured by the investee.
(3) Except for the formation of a business combination, for those obtained by paying cash, the actual purchase
price paid shall be its initial investment cost; for those obtained by issuing equity securities, the fair value of theissued equity securities shall be its initial investment cost; for those acquired through debt restructuring, the initialinvestment cost shall be determined according to "Accounting Standards for Business Enterprises No. 12 - DebtRestructuring"; for those acquired through non-monetary asset exchanges, the initial investment cost shall bedetermined in accordance with "Accounting Standards for Business Enterprises No. 7 - Non-monetary AssetExchanges".
3. Subsequent measurement and profit and loss confirmation methods
The long-term equity investment that controls the investee is accounted for by the cost method; the long-termequity investment for associates and joint ventures is accounted for by the equity method.
4. Handling method of disposing investments in subsidiaries step by step through multiple transactions until they
lose control
(1) Individual financial statements
For the disposed equity, the difference between its book value and the actual purchase price shall be included inthe current profit and loss. For the remaining equity, if it still has a significant impact on the invested entity orperforms joint control with other parties, it shall be converted to equity method accounting; if the invested entitycan no longer be controlled, jointly controlled or significantly affected, it shall be calculated in accordance withrelevant regulations of the "Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments".
(2) Consolidated financial statements
1) Step-by-step disposal of investments in subsidiaries through multiple transactions to the loss of control, and not
belonging to a "package deal"Before the loss of control, the difference between the disposal cost and the net asset share continuing to becalculated from the date of purchase or combination by the subsidiary corresponding to the disposal of long-termequity investment shall adjust the capital reserve (capital premium), if the capital reserve is insufficient to offset ,adjust the retained earnings.When losing the control to the original subsidiary, the remaining equity shall be remeasured at its fair value on thedate of loss of control. The difference between the sum of the consideration obtained from the disposal of theequity and the fair value of the remaining equity and the share of the original subsidiary’s net assets calculatedcontinuously from the date of purchase or merger according to the original shareholding ratio is included in thecurrent investment income when the control is lost, while offsets goodwill. Other comprehensive income relatedto the equity investment of the original subsidiary shall be transferred to the current investment income whenlosing the control.
2) Step-by-step disposal of investments in subsidiaries through multiple transactions to the loss of control, and
belonging to a "package deal"Take each transaction as a transaction that disposes of a subsidiary and loses control for accounting treatment.However, before the loss of control, the difference between each disposal cost and the share of the subsidiary’s netassets corresponding to the disposal investment shall be recognized as other comprehensive income in theconsolidated financial statements, and shall be transferred to the profit and loss of current period when losing thecontrol.
23. Investment real estate
1. The investment real estate includes the rented land use rights, the land use rights which are held and prepared
for transfer after appreciation and the rented buildings.
2. Initial measurement of an investment real estate is based on the cost, the subsequent measurement is based on
cost model, and adopt the same method of depreciation or amortization as fixed assets and intangible assets.
24. Fixed asset
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providingservices, lease or for operation & management, and have more than one year of service life. Fixed assets should berecognized for qualified the followed conditions at the same time:1) It is probable that the economic benefitsassociated with the assets will flow into the Company; and 2) The cost of the assets can be measured reliably.
(2)Depreciation methods
Category Method Years of depreciation Scrap value rate Yearly depreciation rateHouse and buildings Straight-line depreciation
35-40 3 2.77-2.43Machinery equipment Straight-line depreciation
12 3 8.08Transport equipment Straight-line depreciation
7 3 13.86Electronic equipment Straight-line depreciation
5-7 3 33.33-13.86Office and otherequipment
Straight-line depreciation
7 3 13.86Decoration fee for theself-owned house
Straight-line depreciation
10 0 10.00
(3) Recognition, measurement and depreciation of fixed assets held under finance lease
Not applicable
25. Construction in progress
1. The construction in progress is recognized when meet the follow conditions at the same time, that is the
economic benefits are likely to flow in and the cost can be measured reliably. Construction in progress shall bemeasured in terms of the actual cost incurred prior to the construction of such asset to its intended serviceablestate.
2. When the construction in progress reaches the expected serviceable state, it will be transferred into fixed asses
according to the actual cost of the construction. Those who have reached the expected serviceable status but havenot yet processed the final account on completion, shall be transferred to fixed assets according to the estimatedvalue first. The original temporary estimated value shall be adjusted according to the actual cost after the finalaccounts for the completion have been processed, but the previously accrued depreciation shall not be adjusted.
26. Borrowing expense
1. Recognition of capitalization of borrowing expenses
Borrowing expenses that attributed for purchasing or construction of assets that are complying start to becapitalized and counted as relevant assets cost; other borrowing expenses, reckoned into current gains and lossesafter expenses recognized while occurred.
2. Period of capitalization
(1) Borrowing expenses start to be capitalized when all of the following conditions are met: 1) capital expenditure
has been occurred; 2) borrowing expenses have been occurred and 3) acquisition or construction necessary for theassets to come into an expected serviceable state has been carried out.
(2) If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition or
construction or in the production process, and the interruption time exceeds 3 consecutive months, thecapitalization of borrowing costs shall be suspended; the borrowing costs incurred during the suspension shall berecognized as current expenses until the acquisition, construction or production of assets restarts.
(3) When the purchased, constructed or produced assets that meet the capitalization conditions reach the expected
usable or saleable state, the capitalization of borrowing costs shall cease.
3. Capitalization rate and capitalization amount of borrowing costs
If special loans are borrowed for the purpose of purchasing, constructing or producing assets that meet thecapitalization conditions, the amount after subtracting the interest income obtained by depositing the unusedborrowing funds in the bank or the investment income obtained by making a temporary investment for the unusedborrowing funds from the interest expenses actually incurred during the period of the special loans (including theamortization of discounts or premiums determined in accordance with the actual interest rate method) shalldetermine the amount of interest that should be capitalized; if the general borrowing is occupied for the purchase,construction or production of assets that meet the capitalization conditions, the amount of interest of generalborrowings that should be capitalized shall be calculated and determined by multiplying the weighted averagenumber of accumulated asset expenditures in excess of asset expenditures of special borrowings by thecapitalization rate of general borrowings.
27. Biological assets
Not applicable
28. Oil and gas assets
Not applicable
29. Right-of-use assets
Not applicable
30. Intangible assets
(1) Measurement, use of life and impairment testing
1. Intangible assets of the Company including land use rights, trademark and software, which are initially
measured at cost.
2. Intangible assets with limited service life shall be amortized systematically and reasonably within their service
life in accordance with the expected realization method of the economic benefits related to the intangible assets. Ifthe expected realization method can not be reliably determined, the straight-line method shall be adopted foramortization. Specific year for amortization are as:
Item Period for amortization (Year)
| Land use right | 50 |
| Trademark |
Software
| Software | 5 |
(2)Accounting policy of the internal R&D expenditure
Research expenditures for its internal R&D projects shall be recorded into the current gain/loss. Expenses incurredduring the development phase that satisfy the following condition at the same time are recognized as intangibleassets: 1)it is technically feasible that the intangible asset can be used or sold upon completion; 2)there is intentionto complete the intangible asset for use or sale; 3)the intangible asset can produce economic benefits, includingthere is evidence that the products produced using the intangible asset has a market or the intangible asset itselfhas a market; if the intangible asset is for internal use, there is evidence that there exists usage for the intangibleasset; 4) there is sufficient support in terms of technology, financial resources and other resources in order tocomplete the development of the intangible asset, and there is capability to use or sell the intangible asset; and
5)the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long term assets
For long-term equity investments, investment real estate measured by the cost model, fixed assets, construction inprogress, intangible assets with limited service life and other long-term assets, if there are signs of impairment onthe balance sheet date, estimate the recoverable amount. For goodwill formed by business combinations andintangible assets with uncertain service life, regardless of whether there are signs of impairment, an impairmenttest is conducted every year. Goodwill is tested for impairment in combination with its related asset groups orcombination of asset groups.If the recoverable amount of the aforementioned long-term assets is lower than its book value, the assetimpairment provision shall be recognized according to the difference and included in the current profit and loss.
32. Long-term prepaid expenses
General expenses that the long-term prepaid expenses have been accounted for and the amortization period ismore than 1 year (excluding 1 year). Long-term prepaid expenses are accounted for according to the actualamount, and amortized evenly in installments during the benefit period or the prescribed period. If the long-termprepaid expense item cannot benefit the future accounting period, all the amortized value of the item that has notbeen amortized shall be transferred to the current profit and loss.
33. Contractual liabilities
Not applicable
34. Staff remuneration
(1) Accounting treatment of short term remuneration
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profitor loss or relevant assets costs.
(2) Accounting treatment for after-service benefits
After-service benefits are divided into defined contribution plan and defined benefit plan.
(1) During the accounting period when employees provide services to the company, the amount of deposits
calculated according to the defined contribution plan is recognized as a liability and included in the current profitand loss or the cost of related assets.
(2) The accounting treatment of defined benefit plans usually includes the following steps:
1) According to the expected cumulative welfare unit method, use unbiased and mutually consistent actuarial
assumptions to estimate relevant demographic variables and financial variables, measure the obligations arisingfrom the defined benefit plan, and determine the period of the relevant obligations. At the same time, theobligations generated by the defined benefit plan are discounted to determine the present value of the definedbenefit plan obligations and current service costs;
2) If there are assets in a defined benefit plan, the deficit or surplus formed by subtracting the fair value of the
defined benefit plan’s assets from the current value of the defined benefit plan's obligations shall be recognized asa defined benefit plan’s net liabilities or net assets. If there is a surplus in the defined benefit plan, the net assets ofthe defined benefit plan shall be measured at the lower of the surplus of the defined benefit plan and the assetceiling;
3) At the end of the period, the employee compensation costs generated by the defined benefit plans are
recognized as three parts, i.e. service costs, net interest of the net liabilities or net assets of the defined benefitplans, and changes in the remeasured net liabilities or net assets of the defined benefit plans, of which the service
costs and the net interest of the net liabilities or net assets of the defined benefit plans are included in the currentprofits and losses or the cost of related assets, and the changes in the remeasured net liabilities or net assets of thedefined benefit plans are included in other comprehensive income and not allowed to switch back to profits orlosses in the subsequent accounting period, but the amount recognized in other comprehensive income can betransferred within the scope of equity.
(3)Accounting treatment for dismissal benefit
For dismissal benefit provided to employee, the compensation liability resulting from dismissal benefits shall berecognized as early as possible in the following two conditions, and shall be recorded into current gain/loss:
1)when the company can not unilaterally withdraw severance benefits due to the labor relationship termination
plan or layoff proposal; 2) when the company recognizes the costs and expenses associated with a reorganizationinvolving the payment of severance benefits.
(4)Accounting treatment for other long term staff benefits
If other long term benefits provided to the employees meet the conditions of defined contribution plan, accountingtreatment shall be conducted in line with relevant provisions of defined contribution plan; the accountingtreatment of other long term benefit beyond that shall be conducted in accordance with the relevant provision ofdefined benefit plan, in order to simplify relevant accounting treatment, the employee compensation costs incurredare recognized as service costs; the total net amount (includes net interest of the net liability (or net asset) of otherlong term employee benefits and changes resulting from remeasuring the net liability (or net asset) of the longterm employee benefit) shall be recorded into current gain/loss or relevant assets costs.
35. Lease liability
Not applicable
36. Accrual liability
1. when the responsibility relating to contingencies such as guarantee, litigation, product warranties and loss
contract etc. are became the current responsibility undertaken by the Company, the fulfilling of such responsibilitymay lead to financial benefit outflow and such responsibility can be measured reliably for its value, theresponsibility shall be recognized as an accrual liability.
2. Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment of
current responsibilities, and on balance sheet date, review the book value of the accrual liability.
37. Share-based payment
Not applicable
38. Other financial instrument of preferred stocks and perpetual bond
Not applicable
39. Revenue
Accounting policy applicable for the revenue recognition and measurement
1. Revenue recognition principle
(1) Sale of goods
The income from the sale of goods is recognized when the following conditions are met at the same time: 1) Themain risks and rewards of the ownership of the goods are transferred to the purchaser; 2) The company no longerretains the continued management rights normally associated with the ownership, and no longer implementseffectively control of the goods sold; 3) The amount of revenue can be reliably measured; 4) The relevanteconomic benefits are likely to flow in; 5) The related costs that have occurred and will occur can be reliablymeasured.
(2) Provision of labor services
The result of the provision of labor service transaction can be reliably estimated (at the same time, the amount ofincome can be reliably measured, the relevant economic benefits are likely to flow in, the completion progress ofthe transaction can be reliably determined, and the costs that have occurred and will occur in the transaction canbe measured reliably) on the balance sheet date, the percentage of completion method is used to confirm theincome from the provision of labor services, and the completion progress of the labor services transaction isdetermined according to the proportion of the labor services provided to the total labor services to be provided. Ifthe result of the provision of labor service transaction cannot be reliably estimated on the balance sheet date, andthe labor costs incurred are expected to be compensated, the labor service income shall be recognized at theamount of labor costs incurred, and the labor costs shall be carried forward at the same amount. If the labor costsincurred are not expected to be compensated, and the labor costs incurred are included in the current profit sandlosses, and labor income shall not be recognized.
(3) Transfer of assets use rights
The income from the transfer of assets use rights is recognized when the relevant economic benefits are likely toflow in and the amount of income can be reliably measured. Interest income is calculated and determined inaccordance with the time for others to use the Company's monetary funds and the actual interest rate; usage feeincome is calculated and determined in accordance with the charging time and method agreed in the relevantcontract or agreement.
2. Specific methods of revenue recognition
(1) Automobile sales revenue
The Company sells automobiles, and recognizes sales revenue after the automobiles are delivered to customers inaccordance with the agreement, and the payment is received or the right to receive payment is obtained.
(2) Jewellery retail and wholesale
The Company's revenue from the sale of jewellery is divided into retail revenue and wholesale revenue accordingto the sales method. Retail revenue is recognized when the physical goods have been delivered to consumers andthe payment has been collected. Wholesale revenue is realized when the physical goods have been delivered to thecustomer, and the customer has signed for confirmation and received the payment or obtained the proof ofclaiming payment.
(3) Property rental income
The Company's property rental income is recognized as revenue on an accrual basis, and sales revenue isrecognized when the leased assets are delivered to the lessee and the rent has been collected.
40. Government subsidy
1. Government subsidies are recognized when the following conditions are met at the same time: (1) The company
can meet the conditions attached to the government subsidies; (2) The company can receive government subsidies.If a government subsidy is a monetary asset, it shall be measured at the amount received or receivable. If agovernment subsidy is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot beobtained reliably, it shall be measured at its nominal amount.
2. Judgment basis and accounting treatment methods of government subsidies related to assets
Government documents stipulate that government subsidies used for purchase, construction or other forms oflong-term assets shall be classified as asset-related government subsidies. If the government document doesn’tstipulate, judgment shall be made on the basis of the basic conditions that must be met to obtain the subsidies,those used for purchase, construction or other forms of long-term assets shall be regarded as government subsidiesrelated to assets. Government subsidies related to assets are used to offset the book value of related assets or arerecognized as deferred income. If government subsidies related to assets are recognized as deferred income, theyshall be included in profit and loss in installments within the useful life of the relevant assets in a reasonable andsystematic way. Government subsidies measured at their nominal amounts are directly included in the currentprofits and losses. If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life,the undistributed deferred income balance shall be transferred to the current profits and losses of asset disposal.
3. Judgment basis and accounting treatment methods of government subsidies related to income
Government subsidies other than government subsidies related to assets are classified as government subsidiesrelated to income. For government subsidies that include both asset-related parts and income-related parts, it isdifficult to distinguish between assets-related and income-related government subsidies, and they are classified asincome-related government subsidies as a whole. If government subsidies related to income are used tocompensate related costs or losses in subsequent periods, they are recognized as deferred income, and included inthe current profits and losses or offset related costs during the period when related costs or losses are recognized,and they are directly included in the current profits and losses or offset related costs when being used tocompensate related costs or losses that have occurred.
4. Government subsidies related to the company's daily operating activities are included in other income or offset
related costs in accordance with the nature of the economic business. Government subsidies not related to the
company's daily activities are included in non-operating income and expenditure.
41. Deferred income tax assets and deferred income tax liabilities
1. According to the difference between the book value of assets and liabilities and their tax base (the tax base of
items that are not recognized as assets and liabilities can be determined in accordance with the tax law, thedifference between the tax base and its book amount), the deferred income tax assets or deferred income taxliabilities are calculated and recognized according to the applicable tax rate during the period when the asset isexpected to be recovered or the liability is settled.
2. Recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be
obtained to offset deductible temporary differences. On the balance sheet date, if there is conclusive evidenceshowing that sufficient taxable income is likely to be obtained in the future to offset the deductible temporarydifferences, recognize the deferred income tax assets that have not been recognized in the previous accountingperiod.
3. On the balance sheet date, review the book value of deferred income tax assets. If it is likely that sufficient
taxable income cannot be obtained in the future to offset the benefits of deferred income tax assets, the book valueof the deferred income tax assets shall be written down. When it is likely to obtain sufficient taxable income, thewrite-down amount shall be returned.
4. The company's current income taxes and deferred income taxes are included in the current profits and losses as
income tax expenses or income, but not including income tax arising from the following situations: (1) businesscombination; (2) transactions or events directly recognized in owner's equity.
42. Leasing
(1)Accounting treatment for operating lease
As a leassee for the Company, rental expense of operating lease is included in the relevant asset costs or currentprofits and losses through the straight-line method during every period. Initial direct costs shall be included inprofit or loss for the current period. Contingent rental shall be recorded in the current profits and losses in whichthey actually arise.
As a lessor for the Company, rental expense of operating lease is included in current profits and losses through thestraight-line method during every period. The initial direct expenses incurred are directly recorded into currentprofit/loss, except for those with a large amount to be capitalized and recorded into the profit/loss in stages.Contingent rental shall be recorded in the current profits and losses in which they actually arise.
(2)Accounting treatment for financing lease
Not applicable
43. Other important accounting policy and estimation
Segmental (divisional) reportThe Company determines operating divisions based on internal organizational structure, managementrequirements and internal reporting system. Operating divisions of the Company refers to the component thatmeets the following conditions at the same time:
1. this component can generate income and incur expenses in the course of daily activities;
2. the management can evaluate the operating results of this component regularly to determine resources
allocation and evaluate its performance;
3. be able to obtain relevant accounting information such as the financial status, operating results and cash flow of
the component through analysis.
44. Changes of important accounting policy and estimation
(1)Changes of important accounting policies
□Applicable √ Not applicable
(2) Changes of important accounting estimate
□Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented the
new revenue standards and new leasing standards since 2020
□ Applicable √ Not applicable
Whether need to adjust the balance sheet items at the beginning of the year
□Yes √No
Explain the reasons of no need to adjust the balance sheet items at the beginning of the yearOn 5 July 2017, the “Notice Concerning Amendments and Issuance” (Cai Kuai [2017] No.22) (hereinafter referred to as NewRevenue Standard) was issued by Ministry of Finance, and requires the enterprises listed in China shall be implemented since 1 Jan.2020. The Company prepare the disclosure of accounting statement in accordance with the New Revenue Standard since 1 Jan. 2020,and there is no need to retroactively adjust the comparability number in 2019, change of the accounting policy will not affect relevantfinancial indicators of the Company for 2019.
(4) Retrospective adjustment of early comparison data description when implemented the new revenue
standards and new leasing standards since 2020
□ Applicable √ Not applicable
45. Other
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis RateVATSelling goods or providing taxable services
13%, 11%, 9%, 5%, 6% and 3%Property tax
Price-
| based resource tax, 1.2 percent of the remaining value after deducting 30% of the |
original value of the property;
1.2%
Urban maintenance and construction tax Turnover tax payable 7%Educational surtax Turnover tax payable 3%Local education surcharge Turnover tax payable 2%Enterprise income tax Taxable income 20%, 25%Rate of income tax for different taxpaying body:
Taxpaying body Rate of income taxShenzhen Xinyongtong Motor Vehicle Testing Equipment Co.,Ltd.
20%Other taxpaying body than the above 25%
2. Tax preferential
According to the “Notice on Implementation of Preferential Tax-reduction & Exemption Policies for Small &Micro Enterprises”(Cai Shui [2019] No.13) issued by SAT (State Administration of Taxation), ShenzhenXinyongtong Automobile Inspection Equipment Co. Ltd enjoys the preferential tax policies for small & microenterprises with enterprise income tax at the rate of 20%.
3. Other
VII. Annotation to main items of consolidated financial statements
1. Monetary funds
In RMBItem Ending balance Opening balanceCash on hand 52,095.50
120,351.17
Cash in bank 333,557,214.12
428,731,254.87
Total 333,609,309.62
428,851,606.04
The total amount of money that28,671,414.00
28,183,348.23
has restrictions on use due to mortgage,pledge or freezingOther explanation:
Up to 30 June 2020, the Company’s right to use of currency funds under restrictions is 28,671,414.00 yuan, whichis the supervision fund by the Company developed the land plot 03 project of the upgrading project ofTellus-Gman Gold Jewelry Industrial Park.
2. Tradable financial assets
In RMBItem Ending balance Opening balance
with variation reckoned into currentgains/losses
115,128,569.86
| Financial assets measured by fair value and |
60,486,575.34
Including:
Debt instrument investment 115,128,569.86
60,486,575.34
Including:
Total 115,128,569.86
60,486,575.34
Other explanation:
3. Derivative financial assets
Not applicable
4. Note receivable
Not applicable
5. Account receivable
(1) Category
In RMBCategory
Ending balance Opening balanceBook balance Bad debt provision
Bookvalue
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratioAccount receivablewith bad debtprovision accrual ona single basis
49,125,8
62.29
44.59%
49,125,8
62.29
100.00%
49,125,86
2.29
30.16%
49,125,86
2.29
100.00%
Including:
Account receivablewith bad debtprovision accrual onportfolio
61,057,3
95.46
55.41%
538,319.
0.88%
60,519,07
5.70
113,750,7
31.59
69.84%
1,137,507.32
1.00%
112,613,22
4.27
Including:
Total
110,183,
257.75
100.00%
49,664,1
82.05
45.07%
60,519,07
5.70
162,876,5
93.88
100.00%
50,263,36
9.61
30.86%
112,613,22
4.27
Bad debt provision accrual on single basis:
In RMBName
Ending balanceBook balance Bad debt provision Accrual ratio Accrual causes
and Trade Co., Ltd.
9,846,607.00
| Shenzhen Jinlu Industry |
9,846,607.00
100.00%
The accounts are morethan 10 years old and arenot expected to berecovered
Co., Ltd.
4,060,329.44
| Guangdong Zhanjiang Sanxing Auto Service |
4,060,329.44
100.00%
The accounts are morethan 10 years old and arenot expected to berecoveredWang Changlong
2,370,760.40
2,370,760.40
100.00%
| The accounts are more than 10 years old and are not expected to be |
recovered
Company
2,021,657.70
| Huizhou Jiandacheng Daoqiao Engineering |
2,021,657.70
100.00%
| The accounts are more than 10 years old and are not expected to be |
recoveredJianglin
Factory
1,191,059.98
| g Automobile |
1,191,059.98
100.00%
| The accounts are more than 10 years old and are not expected to be |
recovered
Co., Ltd.
1,150,000.00
| Yangjiang Auto Trade |
1,150,000.00
100.00%
| The accounts are more than 10 years old and are |
not expec
recovered
| ted to be | ||
| Guangdong Materials |
Group Corp
1,862,000.00
1,862,000.00
100.00%
| The accounts are more than 10 years old and are not expected to be |
recovered
Other 26,623,447.77
26,623,447.77
100.00%
| The accounts are more than 10 years old and are |
n
recoveredTotal 49,125,862.29
| ot expected to be | ||
49,125,862.29
--Bad debt provision accrual on portfolio:
In RMBName
Ending balanceBook balance Bad debt provision Accrual ratioAging portfolio 19,577,459.23
123,520.40
0.63%
Jewelry sales business portfolio 41,479,936.23
414,799.36
1.00%
Total 61,057,395.46
538,319.76
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
In RMBAccount age Ending balanceWithin one year (including one year) 61,057,395.46
Over 3 years 49,125,862.29
Over 5 years 49,125,862.29
Total 110,183,257.75
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMBCategory Opening balance
Amount changed in the period
Ending balanceAccrual
Collected or
reversal
Written-off OtherAccountsreceivable withsingle itemprovision for baddebts
49,125,862.29
49,125,862.29
Accountsreceivable with
1,137,507.32
414,799.36
1,013,986.92
538,319.76
provision for baddebts bycombinationTotal 50,263,369.61
414,799.36
1,013,986.92
49,664,182.05
(3) Account receivable actually written-off in the period
Not applicable
(4) Top 5 account receivables at ending balance by arrears party
In RMBEnterprise
Ending balance of accounts
receivable
Proportion in total receivables at
ending balance
Bad debt preparation ending
balanceShenzhen Jinlu Industryand Trade Co., Ltd.
9,846,607.00
8.94%
9,846,607.00
Guangdong Zhanjiang
| Sanxing Auto Service Co., |
Ltd.
4,060,329.44
3.69%
4,060,329.44
Shenzhen ShangjinyuanJewelry Industry Co., Ltd.
3,246,835.81
2.95%
32,468.36
Tan Changyun 2,969,392.64
2.69%
29,693.93
Wang Changlong 2,370,760.40
2.15%
2,370,760.40
Total 22,493,925.29
20.42%
16,339,859.13
(5) Account receivable derecognition due to financial assets transfer
Not applicable
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Not applicable
6. Account receivable financing
In RMBChanges of account receivable financing and change of fair value in the period
□ Applicable √Not applicable
If the impairment provision of account receivable financing is made in accordance with the general model of expected credit losses,please refer to the disclosure of other account receivables to disclose related information about impairment provision:
□ Applicable √Not applicable
7. Accounts paid in advance
(1) By account age
In RMBAccount age
Ending balance Opening balanceAmount Ratio Amount RatioWithin one year 17,075,615.18
99.93%
12,671,077.95
| 99.90% |
1-2 years 632.00
0.00%
632.00
0.00%
Over 3 years 11,893.94
0.07%
11,893.94
0.09%
Total 17,088,141.12
100.00%
12,683,603.89
100.00%
(2) Top 5 account paid in advance at ending balance by prepayment object
Name Ending balance
Proportion in
the end of period (%)FAW Toyota Motor Sales Co., Ltd.
| prepayment balance at | ||
| 8,794,912.61 | 51.47% | |
| Beijing Fugong Lide Technology Development |
Co., Ltd.
| 3,114,328.95 | 18.23% |
Toyota Motor (China) Investment Co., Ltd.
| 2,033,274.00 | 11.90% | |
| Shenzhen Dingye Building Decoration |
Engineering Co., Ltd.
| 1,198,130.04 | 7.01% |
Alight Automotive Technology Co., Ltd.
| 702,764.09 | 4.11% |
Total
| 15,843,409.69 | 92.72% |
8. Other account receivable
In RMBItem Ending balance Opening balanceDividend receivable 39,647,732.42
39,647,732.42
Other account receivable 5,969,946.53
5,260,813.98
Total 45,617,678.95
44,908,546.40
(1) Interest receivable
Not applicable
(2) Dividend receivable
1) Category
In RMBItem (or invested unit) Ending balance Opening balanceChina Pudong Development MachineryIndustry Co., Ltd
547,184.35
547,184.35
Shenzhen Dongfeng Motor Co., Ltd. 39,100,548.07
39,100,548.07
Total 39,647,732.42
39,647,732.42
2) Important dividend receivable with account age over one year
Not applicable
3) Accrual of bad debt provision
□ Applicable √Not applicable
(3) Other account receivable
1) By nature
In RMBNature Ending book balance Opening book balanceDeposit margin 191,787.80
35,477.21
Reserve fund 195,000.00
43,385.72
Interim payment receivable 57,937,858.58
57,536,664.77
Total 58,324,646.38
57,615,527.70
2) Accrual of bad debt provision
In RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses over next 12
months
Expected credit losses for
credit impairment occurred)
Expected credit losses forthe entire duration (withcredit impairment occurred)
Balance on Jan. 1, 2020 2,515,818.56
49,838,895.16
52,354,713.72
Balance of Jan. 1, 2020in the period
—— —— —— ——
Current accrual 17.90
17.90
Current switch back 31.77
31.77
Balance on Jun. 30, 2020 2,515,804.69
49,838,895.16
52,354,699.85
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMBAccount age Ending balanceWithin one year (including one year) 3,383,256.24
1-2 years 110,132.23
2-3 years 116,202.70
Over 3 years 54,715,055.21
3-4 years 25,191.12
4-5 years 251,466.43
Over 5 years 54,438,397.66
Total 58,324,646.38
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMBCategory Opening balance
Ending balanceAccrual
| Amount changed in the period | ||
| Collected or | ||
reversal
Written off OtherProvision for baddebts bycombination
52,354,713.72
17.90
31.77
52,354,699.85
Total 52,354,713.72
17.90
31.77
52,354,699.85
4) Other account receivable actually written-off in the period
Not applicable
5) Top 5 other receivables at ending balance by arrears party
In RMBEnterprise Nature Ending balance Account age
Ratio in total ending
balance of other
Ending balance of
bad debt reserve
account receivables
Zhongqi SouthChina Auto SalesCompany
Intercourse funds 9,832,956.37
Over 3 years 16.86%
9,832,956.37
South Industry &TRADE ShenzhenIndustrial Company
Intercourse funds 7,359,060.75
Over 3 years 12.62%
7,359,060.75
Shenzhen Zhonghao(Group) Co., Ltd
Intercourse funds 5,000,000.00
Over 3 years 8.57%
5,000,000.00
Shenzhen KaifengSpecial AutomobileIndustry Co., Ltd.
Intercourse funds 4,413,728.50
Over 3 years 7.57%
4,413,728.50
Gold Beili ElectricalAppliancesCompany
Intercourse funds 2,706,983.51
Over 3 years 4.64%
2,706,983.51
Total -- 29,312,729.13
-- 50.26%
29,312,729.13
6) Other account receivables related to government grants
Not applicable
7) Other receivable for termination of confirmation due to the transfer of financial assets
Not applicable
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Not applicable
9. Inventories
Does the company need to comply with the disclosure requirements of the real estate industryNo
(1) Category
In RMBItem
Ending balance Opening balanceBook balance
Provision for
inventory
Book value Book balance
Provision for
inventory
Book value
depreciation or
contractperformance cost
impairment
provision
depreciation orcontract
impairmentprovisionRaw materials 15,148,137.86
| performance cost | ||
14,772,382.17
375,755.69
15,079,409.32
14,772,382.17
307,027.15
Inventory 28,859,715.44
14,121,481.67
14,738,233.77
35,204,057.35
14,121,481.67
21,082,575.68
Total 44,007,853.30
28,893,863.84
15,113,989.46
50,283,466.67
28,893,863.84
21,389,602.83
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMBItem Opening balance
Current amount increased Current amount decreased
Ending balanceAccrual Other
Reversal orwrite-off
OtherRaw materials 14,772,382.17
14,772,382.17
Inventory 14,121,481.67
14,121,481.67
Total 28,893,863.84
28,893,863.84
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
Not applicable
(4) Description of the current amortization amount of contract performance costs
Not applicable
10. Contract assets
Not applicable
11. Assets held for sale
Not applicable
12. Non-current asset due within one year
Not applicable
13. Other current assets
In RMB
Item Ending balance Opening balanceInput VAT to be deducted 2,970,702.64
3,403,969.23
Total 2,970,702.64
3,403,969.23
14. Creditors’ investment
Not applicable
15. Other creditors’ investment
Not applicable
16. Long-term account receivable
(1) Long-term account receivable
In RMBItem
Ending balance Opening balance
Discount rateintervalBook balance
Bad debtprovision
Book value Book balance
Bad debtprovision
Book valueRelatedtransactions
2,179,203.68
2,179,203.68
2,179,203.68
2,179,203.68
Total 2,179,203.68
2,179,203.68
2,179,203.68
2,179,203.68
--Impairment of bad debt provision
In RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses over next 12
months
Expected credit losses for
credit impairment occurred)
Expected credit losses forthe entire duration (withcredit impairment occurred)
Balance of Jan. 1, 2020
2,179,203.68
2,179,203.68
Balance of Jan. 1, 2020in the period
—— —— —— ——Balance of Jun. 30, 2020
2,179,203.68
2,179,203.68
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term account receivable derecognition due to financial assets transfer
Not applicable
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Not applicable
17. Long-term equity investment
In RMB
Theinvestedentity
Openingbalance(bookvalue)
Current changes (+,-)
Endingbalance(bookvalue)
Endingbalanceofimpairmentprovision
Additiona
linvestment
Capitalreduction
Investment gainsrecognize
d underequity
Othercomprehe
nsive
incomeadjustment
Otherequitychange
Cashdividendor profitannounce
d to
issued
Accrual
ofimpairme
ntprovision
Other
I. Joint ventureShenzhenTellusGmanInvestment Co.,Ltd
70,155,38
3.50
4,039,637.29
74,195,02
0.79
ShenzhenTellusHangInvestment Co.,Ltd.
11,845,45
2.17
300,297.7
12,145,74
9.93
Subtotal
82,000,83
5.67
4,339,935.05
86,340,77
0.72
II. Associated enterpriseShenzhenZung FuTellusAutoServiceCo., Ltd.
33,313,73
2.20
4,376,011.38
37,689,74
3.58
ShenzhenAutomobileIndustryImportand
2,026,407
.98
-345,335.
1,681,072.16
ExportCo., Ltd.Shenzhen
MotorCo., Ltd.
44,837,56
8.20
| Dongfeng |
151,256.2
44,988,82
4.43
ShenzhenXinyongt
PumpEnvironment
| Protection |
Co., Ltd.
127,836.5
ShenzhenXinyongtongConsultant Co., Ltd.
41,556.83
ShenzhenTellusAutomobile ServiceChainCo., Ltd.[Note 3]
ShenzhenXinyongtong AutoServiceCo.,Ltd.[ Note 3]
ShenzhenXinyongtongDongxiaoAutoServiceCo.,Ltd.[ Note 3]
ShenzhenYongtongXindaInspectionEquipment Co.,Ltd.[ Note 3]
HunanChangyangIndustrialCo.,Ltd.[ Note 1]
1,810,540.70
ShenzhenJiecheng
| Electronic |
Co.,Ltd.[ Note 1]
3,225,000.00
ShenzhenXiandaoNewMaterialsCo.,Ltd.[ Note 1]
4,751,621.62
ChinaAutoIndustrialShenzhenTradingCompany[Note 1]
400,000.0
ShenzhenGeneralStandardCo.,Ltd.[ Note 1]
500,000.0
ShenzhenZhongqiSouthChinaAutoSalesCompany[Note 1]
2,250,000
.00
ShenzhenBailiyuanPowerSupplyCo.,Ltd.[ Note 1]
1,320,000
.00
ShenzhenYiminAutoTradingCompany[Note 1]
200,001.1
ShenzhenTorchSparkPlugIndustryCompany
17,849.20
ShenzhenHanligaoTechnologyCeramicsCo.,Ltd.[ Note 2]
1,956,000
.00
ShenzhenSouthAutoMaintenanceCenter[Note 2]
6,700,000
.00
Subtotal
80,177,70
8.38
4,181,931
.79
84,359,64
0.17
23,300,40
6.04
Total
162,178,5
44.05
8,521,866
.84
170,700,4
10.89
23,300,40
6.04
Other explanation:
[Note 1]: These companies have revoked their industrial and commercial registrations, and the company has madefull provision for impairment of such long-term equity investments.[Note 2]: The operating period of Shenzhen Hanligao Technology Ceramics Co., Ltd was from September 21,1993 to September 21, 1998, and the operation period of Shenzhen South Auto Maintenance Center was from July12, 1994 to July 11, 2002, these companies have ceased operations for many years and their business registrationshave been revoked because they did not participate in the annual industrial and commercial inspection. TheCompany has been unable to exercise effective control over these companies, and these companies are notincluded in the consolidation scope of the Company's consolidated financial statements, the Company'sinvestment in these companies book value is zero.[Note 3]: Book balance of these long-term equity investment is adjusted for profit and loss in accordance with theequity method, the book balance is 0 yuan.
18. Other equity instrument investment
In RMBItem Ending balance Opening balanceChina Pudong Development MachineryIndustry Co., Ltd
10,176,617.20
10,176,617.20
Total 10,176,617.20
10,176,617.20
19. Other non-current financial assets
Not applicable
20. Investment real estate
(1) Measured at cost
√ Applicable □Not applicable
In RMBItem House and building Land use right Construction in progress TotalI. Original book value
1.Opening balance 614,240,458.56
49,079,520.00
663,319,978.56
2.Current amount
increased
(1) Outsourcing
(2) Inventory\fixed
assets\construction inprocess transfer-in
(3) Increased by
combination
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 614,240,458.56
49,079,520.00
663,319,978.56
II. Accumulateddepreciation andaccumulatedamortization
1.Opening balance 107,605,031.33
1,115,443.68
108,720,475.01
2.Current amount
increased
8,543,675.81
557,518.39
9,101,194.20
(1) Accrual or
amortization
8,543,675.81
557,518.39
9,101,194.20
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 116,148,707.14
1,672,962.07
117,821,669.21
III. Impairment provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending book value 498,091,751.42
47,406,557.93
545,498,309.35
2. Opening book value 506,635,427.23
47,964,076.32
554,599,503.55
(2) Measure at fair value
□ Applicable √Not applicable
(3) Investment real estate without property certificate completed
In RMBItem Book value ReasonsShuibei Jewelry Building Phase I (Housesand Buildings)
417,743,515.67
Uncompleted settlement, failure to handle
the ownership certificate12 buildings in Sungang
16,267.01
Failure to handle the ownershipcertificate for historical reasons12 building shops in Sungang
50,731.71
Failure to handle the ownershipcertificate for historical reasonsTotal 417,810,514.39
21. Fixed assets
In RMBItem Ending balance Opening balanceFixed assets 104,203,903.95
107,119,796.59
Total 104,203,903.95
107,119,796.59
(1) Fixed assets
In RMBItem
House andbuildings
Machineryequipment
Transportequipment
Electronicequipment
Office and
otherequipment
Self-owned
housedecoration fee
Total
I. Originalbook value:
1.Opening
balance
266,262,162.27
11,370,001.49
5,187,935.34
9,732,341.99
3,030,248.40
2,697,711.99
298,280,401.48
2.Current
amountincreased
115,167.00
219,281.00
301,125.77
848,167.16
1,483,740.93
(1)Purchase
115,167.00
219,281.00
301,125.77
848,167.16
1,483,740.93
(2)
| Construction in |
progresstransfer-in
(3)Increased bycombination
3.Current
amountdecreased
246,687.67
52,940.15
299,627.82
(1)Disposal orscrap
246,687.67
52,940.15
299,627.82
4.Ending
balance
266,262,162.27
11,238,480.82
5,407,216.34
9,980,527.61
3,878,415.56
2,697,711.99
299,464,514.59
II.Accumulateddepreciation
1.Opening
balance
164,059,471.10
8,364,746.10
3,201,785.74
6,873,351.21
1,999,468.42
2,416,329.26
186,915,151.83
2.Current
amountincreased
3,554,259.68
179,885.22
207,648.08
301,413.58
126,255.78
4,369,462.34
(1)Accrual
3,554,259.68
179,885.22
207,648.08
301,413.58
126,255.78
4,369,462.34
3.Current
amount
222,018.92
47,437.67
269,456.59
decreased(1)Disposal orscrap
222,018.92
47,437.67
269,456.59
4.Ending
balance
167,613,730.78
8,322,612.40
3,409,433.82
7,127,327.12
2,125,724.20
2,416,329.26
191,015,157.58
III. Impairmentprovision
1.Opening
balance
3,555,385.70
319,675.11
6,165.00
17,984.71
64,859.81
281,382.73
4,245,453.06
2.Current
amountincreased
(1)Accrual
3.Current
amountdecreased
(1)Disposal orscrap
4.Ending
balance
3,555,385.70
319,675.11
6,165.00
17,984.71
64,859.81
281,382.73
4,245,453.06
IV. Book value
1.Ending
book value
95,093,045.79
2,596,193.31
1,991,617.52
2,835,215.78
1,687,831.55
104,203,903.95
2. Opening
book value
98,647,305.47
2,685,580.28
1,979,984.60
2,841,006.07
965,920.17
107,119,796.59
(2) Temporarily idle fixed assets
Not applicable
(3) Fixed assets by financing leased
Not applicable
(4) Fixed assets leased out by operation
Not applicable
(5) Fix assets without property certification held
In RMBItem Book value
Reasons for without the property
certificationYongtong Building
32,456,952.25
Failure to handle the ownership certificatefor historical reasonsAutomotive building
16,023,300.79
Failure to handle the ownership certificatefor historical reasonsTellus Building underground parking
9,248,131.94
Parking lot is un-
| able to carried out the |
certificateNuclear Office build
4,760,273.67
Failure to handle the ownership certificate
for historical reasons1#,2# and 3-5/F 3# plant of Taoyuan Road
3,650,542.96
Failure to handle the ownership certificate
for historical reasonsTellus Building transformation layer
1,594,452.32
Un-able to carried out the certificate16# Taohua Garden
1,435,947.00
Failure to handle the ownership certificate
for historical reasonsShuibei Zhongtian comprehensive building
934,803.54
Failure to handle the ownership certificate
for historical reasonsFirst floor of Bao’an commercial-
build
919,474.29
| residence |
Failure to handle the ownership certificate
for historical reasonsWarehouse
861,346.33
Failure to handle the ownership certificate
for historical reasonsTrade department warehouse
74,798.77
Failure to handle the ownership certificate
for historical reasonsSongquan Apartment (mixed)
11,203.94
Failure to handle the ownership certificate
for historical reasonsHostel of Renmin North Road
5,902.41
Failure to handle the ownership certificate
for historical reasonsSubtotal 71,977,130.21
Other explanation
(6) Fixed assets disposal
Not applicable
22. Construction in progress
In RMBItem Ending balance Opening balanceConstruction in progress 74,408,194.38
47,654,393.55
Total 74,408,194.38
47,654,393.55
(1) Construction in progress
In RMBItem
Ending balance Opening balanceBook balance
Impairment
provision
Book value Book balance
Impairment
provision
Book valueTellus ShuibeiJewelry BuildingPhase II
50,643,962.68
50,643,962.68
35,321,704.26
35,321,704.26
421 FactoryReconstructionand Upgrade Item
18,249,388.95
18,249,388.95
8,593,316.07
8,593,316.07
| Phase I and Phase |
II UndergroundConnectionProject
4,679,302.48
4,679,302.48
3,710,247.00
3,710,247.00
Treasure Item 835,540.27
835,540.27
29,126.22
29,126.22
Total 74,408,194.38
74,408,194.38
47,654,393.55
47,654,393.55
(2) Changes of major construction in progress
In RMB
ItemName
Budget
Opening
balance
Currentamountincreased
| Opening |
Transfer-in fixed
assets
Otherdecreased in thePeriod
Endingbalance
Proporti
on ofprojectinvestme
nt in
budget
Progress
Accumul
atedcapitalization ofinterest
Including:
amountofcapitalization ofinterest
Interestcapitaliz
| in Period | ation rate in Period |
TellusShuibeiJewelryBuildingPhase II
35,321,7
04.26
15,322,2
58.42
50,643,9
62.68
9.83%
9.83%
Other
FactoryReconstructionandUpgradeItem
8,593,31
6.07
9,656,07
2.88
18,249,3
88.95
61.01%
61.01%
Other
Phase IandPhase IIUndergroundConnectionProject
3,710,24
7.00
969,055.
4,679,30
2.48
94.34%
94.34%
Other
TreasureItem
29,126.2
806,414.
835,540.
1.67%
1.67%
OtherTotal
47,654,3
93.55
26,753,8
00.83
74,408,1
94.38
-- --
--
(3) The provision for impairment of construction in progress
Not applicable
(4) Engineering material
Not applicable
23. Productive biological asset
(1) Measured by cost
□ Applicable √Not applicable
(2) Measured by fair value
□ Applicable √Not applicable
24. Oil and gas asset
□ Applicable √Not applicable
25. Right-of-use asset
Not applicable
26. Intangible assets
(1) Intangible assets
In RMBItem Land use right Patent
Non-patenttechnology
TotalI. Original bookvalue
1.Opening
balance
50,661,450.00
128,500.00
1,582,145.00
52,372,095.00
2.Current
amount increased
46,017.70
46,017.70
(1) Purchase
46,017.70
46,017.70
| (2) internal |
R&D
(3)Increased bycombination
3.Current amount
decreased
(1) Disposal
4.Ending
balance
50,661,450.00
128,500.00
1,628,162.70
52,418,112.70
II. Accumulateddepreciation
1.Opening
balance
713,015.84
89,622.68
1,008,230.81
1,810,869.33
2.Current
amount increased
538,721.58
2,674.98
97,335.90
638,732.46
(1) Accrual 538,721.58
2,674.98
97,335.90
638,732.46
3.Current
amount decreased
(1) Disposal
4.Ending
balance
1,251,737.42
92,297.66
1,105,566.71
2,449,601.79
III. Impairmentprovision
1.Opening
balance
2.Current
amount increased
(1) Accrual
3.Current
amount decreased
(1) Disposal
4.Ending
balance
IV. Book value
1.Ending book
value
49,409,712.58
36,202.34
522,595.99
49,968,510.91
2. Opening
book value
49,948,434.16
38,877.32
573,914.19
50,561,225.67
(2) Land use rights without certificate of ownership
Not applicable
27. Expense on Research and Development
Not applicable
28. Goodwill
Not applicable
29. Long-term expenses to be apportioned
In RMBItem Opening balance
Current amountincreased
Current amortization
Other decreased Ending balanceRenovation costs 13,606,805.49
337,672.41
1,049,167.62
12,895,310.28
Total 13,606,805.49
337,672.41
1,049,167.62
12,895,310.28
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMBItem
Ending balance Opening balanceDeductible temporarydifferences
Deferred income tax
asset
Deductible temporarydifferences
Deferred income tax
assetAsset impairmentprovision
34,557,965.16
8,639,491.29
34,635,849.55
8,658,962.39
Total 34,557,965.16
8,639,491.29
34,635,849.55
8,658,962.39
(2) Deferred income tax liability without offset
Not applicable
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMBItem
Trade-off between the
deferred income taxassets and liabilities
Ending balance ofdeferred income taxassets or liabilities after
off-set
Trade-off between the
deferred income taxassets and liabilities at
period-begin
Opening balance ofdeferred income taxassets or liabilities after
off-setDeferred income taxasset
8,639,491.29
8,658,962.39
(4) Details of uncertain deferred income tax assets
In RMBItem Ending balance Opening balanceDeductible temporary differences 126,645,220.59
127,244,422.02
Deductible loss 19,619,056.75
19,619,056.75
Total 146,264,277.34
146,863,478.77
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMBYear Ending amount Opening amount Note2020 505,851.30
505,851.30
2021 1,484,364.61
1,484,364.61
2022 4,702,701.91
4,702,701.91
2023 5,499,309.62
5,499,309.62
2024 7,426,829.31
7,426,829.31
Total 19,619,056.75
19,619,056.75
--
31. Other non-current asset
In RMBItem
Ending balance Opening balanceBook balance
Provision forimpairment
Book value Book balance
| Provision for |
impairment
Book valueAdvance payment for engineeringequipment
8,483,308.88
8,483,308.88
6,789,167.54
6,789,167.54
Information construction fund 933,740.18
933,740.18
Other 100,000.00
100,000.00
100,000.00
100,000.00
Total 9,517,049.06
9,517,049.06
6,889,167.54
6,889,167.54
Other explanation:
32. Short-term loans
(1) Category
Not applicable
33. Tradable financial liability
Not applicable
34. Derivative financial liability
Not applicable
35. Note payable
Not applicable
36. Account payable
(1) Account payable
In RMBItem Ending balance Opening balancePurchase of goods and services 8,863,245.61
5,671,144.03
Engineering equipment 58,728,301.55
63,416,286.39
Total 67,591,547.16
69,087,430.42
(2) Major accounts payable with age over one year
In RMBItem Ending balance Reasons of outstanding or carry-overShenzhen Yinglong Jian’an (Group) Co.,Ltd.
28,503,133.19
Project unsettledShenzhen SDG Real Estate Co., Ltd
6,054,855.46
Unrepayment from related enterpriseShenzhen Yinuo Construction EngineeringCo., Ltd.
4,274,022.22
Project unsettledTotal 38,832,010.87
--
37. Accounts received in advance
(1) Accounts received in advance
In RMBItem Ending balance Opening balanceRent 158,872.79
491,560.38
Payment 14,257,422.49
26,808,262.33
Total 14,416,295.28
27,299,822.71
38. Contractual liabilities
Not applicable
39. Wage payable
(1) Wage payable
In RMBItem Opening balance Current increased Current decreased Ending balanceI. Short-termcompensation
30,503,178.16
36,875,035.83
36,555,731.04
30,822,482.95
II. After-servicewelfare-definedcontribution plans
701,616.73
384,408.27
916,481.15
169,543.85
III. Dismissed welfare
360,836.00
360,836.00
Total 31,204,794.89
37,620,280.10
37,833,048.19
30,992,026.80
(2) Short-term compensation
In RMBItem Opening balance
Current increased Current decreased
Ending balance
1. Wage, bonus,
allowance and subsidy
28,178,495.98
33,551,443.96
32,787,768.34
28,942,171.60
2. Employees’ welfare
469,358.91
469,358.91
3. Social insurance
charges
8,358.59
622,767.82
631,126.41
Including: medicalinsurance premium
7,172.62
543,280.30
550,452.92
| Industrial injury |
insurance premiums
513.72
2,473.22
2,986.94
| Maternity insurance |
premiums
672.25
77,014.30
77,686.55
| 4. Housing public reserve |
2,041,648.34
1,755,734.00
2,173,133.46
1,624,248.88
| 5. Trade union fee and |
education fee
274,675.25
475,731.14
494,343.92
256,062.47
Total 30,503,178.16
36,875,035.83
36,555,731.04
30,822,482.95
(3) Defined contribution plans
In RMBItem Opening balance Current increased Current decreased Ending balance
142,418.85
| 1. Basic endowment insurance premiums |
381,168.57
523,587.42
2. Unemployment
1,352.03
3,239.70
4,591.73
3. Enterprise annuity 557,845.85
| insurance premiums | ||
388,302.00
169,543.85
Total 701,616.73
384,408.27
916,481.15
169,543.85
40. Taxes payable
In RMBItem Ending balance Opening balanceVAT -358,235.15
551,626.76
Enterprise income tax 6,435,910.05
64,461,051.35
Personal income tax 339,337.61
342,986.08
Urban maintenance and construction tax 137,895.89
134,816.64
Land VAT
5,362,682.64
5,362,682.64
House property tax 811,135.85
266.04
Use tax of land 135,831.92
26,459.98
Educational surtax 83,895.38
82,529.27
Local education surcharges 55,930.25
55,019.51
Stamp tax 143,335.03
407,829.34
Other 11,811.88
Total 13,159,531.35
71,425,267.61
Other explanation:
41. Other account payable
In RMBItem Ending balance Opening balanceOther account payable 99,453,009.14
101,266,802.49
Total 99,453,009.14
101,266,802.49
(1) Interest payable
Not applicable
(2) Dividend payable
Not applicable
(3) Other account payable
1) By nature
In RMBItem Ending balance Opening balanceDeposit margin 34,097,428.62
29,630,854.41
Related transactions
28,310,337.10
Withholding payments 30,877,029.60
14,218,478.78
Payable interim payment 34,478,550.92
29,107,132.20
Total 99,453,009.14
101,266,802.49
2) Significant other account payable with over one year age
Not applicable
42. Liability held for sale
Not applicable
43. Non-current liabilities due within one year
Not applicable
44. Other current liabilities
Not applicable
45. Long-term loans
Not applicable
46. Bonds payable
Not applicable
47. Lease liability
Not applicable
48. Long-term account payable
In RMB
Item Ending balance Opening balanceLong-term account payable 3,920,160.36
3,920,160.36
Total 3,920,160.36
3,920,160.36
(1) By nature
In RMB
Item Ending balance Opening balanceDeposit of staff residence
3,908,848.40
3,908,848.40
Allocation for technology innovationprojects
11,311.96
11,311.96
Total 3,920,160.36
3,920,160.36
(2) Special account payable
Not applicable
49. Long-term wage payable
Not applicable
50. Accrual liabilities
In RMBItem Ending balance Opening balance CausesPending litigation
2,225,468.76
2,225,468.76
For details, please refer to noteXIV 2 (2) of this financialstatementTotal 2,225,468.76
2,225,468.76
--
51. Deferred income
In RMBItem Opening balance Current increased Current decreased Ending balance CausesGovernmentsubsidies
139,400.00
139,400.00
Receive governmentsubsidiesTotal 139,400.00
139,400.00
--Item with government grants involved:
In RMB
Liability
Openingbalance
New grantsin the Period
Amountreckoned innon-operation revenue
Amountreckoned inother income
Costreduction in
the period
Otherchanges
Endingbalance
Assets-relate
d/income
relatedElevatorRenewal
for FutianDistrict OldElevatorRenovationWorkingGroup
139,400.00
| Subsidy Fund |
139,400.00
Assets-related
52. Other non-current liabilities
Not applicable
53. Share capital
In RMB
Openingbalance
Increased (decreased) in this period+,-
Ending balance
New sharesissued
Bonus shares
Shares
converted from
public reserve
Other SubtotalTotal shares 431,058,320.00
| converted from | |||||
431,058,320.00
54. Other equity instrument
Not applicable
55. Capital public reserve
In RMBItem Opening balance Current increased Current decreased Ending balanceCapital premium (Sharecapital premium)
425,768,053.35
425,768,053.35
Other capital reserve5,681,501.16
5,681,501.16
Total 431,449,554.51
431,449,554.51
56. Treasury stock
Not applicable
57. Other comprehensive income
In RMB
Item
Openingbalance
Current Period
EndingbalanceAccountbeforeincome taxin theperiod
Less: written
in othercomprehensive income in
previousperiod and
carriedforward to
gains and
losses in
current
period
Less:
written in
othercomprehe
nsiveincome inprevious
carried
| forward to |
retained
current
period
| earnings in | Less : income |
tax expense
Belong to
parentcompanyafter tax
Belong tominority
after tax
| shareholders | ||
| II. Other comprehensive income items which will be reclassified |
subsequently to profit or loss
26,422.00
26,422.0
| Including: Other comprehensive income under equity method that |
can transfer to gain/loss
26,422.00
26,422.0
Total other comprehensive income
26,422.00
26,422.0
58. Reasonable reserve
Not applicable
59. Surplus public reserve
In RMBItem Opening balance Current increased Current decreased Ending balanceStatutory surplusreserves
21,007,488.73
21,007,488.73
Total 21,007,488.73
21,007,488.73
60. Retained profit
In RMBItem
Current period Last period
before adjustment
387,423,510.78
| Retained profit at the end of the previous period |
184,535,322.70
Adjust the total Retained profits at the beginningof the period (Increase +, Decrease -)
1,079,805.36
| Total retained profit at the beginning of the |
previous period before adjustment
387,423,510.78
185,615,128.06
Add: net profit attributable to shareholder ofparent company
25,594,985.78
219,669,708.47
Less: withdrawal of legal surplus reserve
17,861,325.75
Common stock dividends payable
18,104,449.44
Retained profit at period-end
394,914,047.12
387,423,510.78
61. Operating income and operating cost
In RMBItem
Current period Last periodIncome Cost Income CostMain business 193,056,348.40
153,545,320.45
274,182,882.36
209,294,422.75
Other business 3,995,441.89
1,229,267.07
4,085,856.97
1,199,589.67
Total 197,051,790.29
154,774,587.52
278,268,739.33
210,494,012.42
Income related information
In RMBContract classification Division 1 Division 2 TotalIncluding:
Auto sales
98,797,491.83
Automobile inspectionand maintenance andparts sales
19,138,132.58
Property leasing andservices
62,152,861.68
Jewelry wholesale andretail
16,963,304.20
Including:
Shenzhen
180,088,486.09
Sichuan
16,963,304.20
62. Tax and surcharges
In RMBItem Current period Last periodConsumption tax
228,067.46
Urban maintenance and construction tax 273,827.41
395,934.29
Education surcharge 195,109.16
282,810.15
House property tax 554,437.90
1,686,527.43
Use tax of land 365,803.85
218,743.88
Stamp duty 82,782.69
152,809.21
Other taxes -95,233.44
3,272.64
Total 1,376,727.57
2,968,165.06
63. Sales expenses
In RMBItem Current period Last periodStaff remuneration
4,368,623.68
6,075,124.02
Advertising and exhibition expenses
190,434.21
238,736.65
Depreciation and amortization
762,935.85
710,671.25
Office expenses
266,706.77
283,392.38
Property and utilities 371,102.25
141,178.84
Transportation and business trip cost
6,650.61
147,134.39
Other
809,691.17
1,762,276.76
Total 6,776,144.54
9,358,514.29
64. Administration expenses
In RMBItem Current period Last periodStaff remuneration
13,255,712.63
13,660,961.91
Office expenses
522,602.46
631,367.84
Transportation and business trip cost
105,949.65
159,511.67
Business entertainment expenses
103,117.88
257,293.90
Depreciation and amortization
989,192.76
1,027,310.00
Consulting and service expenses
1,270,520.91
528,616.99
Other
954,904.32
613,566.95
Total 17,202,000.61
16,878,629.26
65. R&D expenses
Not applicable
66. Financial expenses
In RMBItem Current period Last periodInterest expenses 46,986.20
4,765,937.06
Less: Interest income 2,453,494.99
1,152,054.69
Less: interest capitalized amount
Exchange loss 66,918.38
10,717.33
Other 137,439.86
133,176.06
Total -2,202,150.55
3,757,775.76
67. Other income
In RMBSources Current period Last periodVAT input tax deduction
6,611.29
Handling fee refund for withholdingpersonal income tax
36,471.10
Other
16,375.60
Total 52,846.70
6,611.29
68. Investment income
In RMBItem Current period Last periodLong-term equity investment incomemeasured by equity
8,521,866.84
10,775,524.54
Investment income of trading financial assetsduring the holding period
4,359,623.66
5,935,926.39
Total 12,881,490.50
16,711,450.93
69. Net exposure hedge gains
Not applicable
70. Income of fair value changes
In RMBSources Current period Last periodTradable financial assets -356,102.35
Total -356,102.35
71. Credit impairment loss
In RMBItem Current period Last periodLoss of bad debt of other accountreceivable
599,187.56
-184,419.32
Loss of bad debt of other accountreceivable
13.87
286,085.46
Total 599,201.43
101,666.14
72. Assets impairment loss
Not applicable
73. Income from assets disposal
In RMBSources Current period Last periodIncome from disposal of non-current assets
103,159.68
Total
103,159.68
74. Non-operating income
In RMBItem Current period Last periodAmount included in the current
non-recurring profit and lossGovernment grants 230,000.00
230,000.00
Gains from non-current assetsdamaged/scrap
52,583.13
Including: Fixed assets
52,583.13
Other
716,106.92
67,042.31
716,106.92
Total 946,106.92
119,625.44
Government grants reckoned into current gains/losses:
In RMB
Grants
Issuingsubject
Issuing cause
Property type
Whether theimpact ofsubsidies onthe currentprofit andloss
Whetherspecialsubsidies
Amount ofthis period
Amount oflast period
Assetsrelated/Incom
e related
Governmentgrants
LuohuDistrictIndustry andInformationTechnologyBureau
230,000.00
Incomerelated
Other explanation:
Epidemic subsidy
75. Non-operating expenditure
In RMBItem Current period Last period
Amount included in the current
non-recurring profit and lossOther 29,059.48
833,400.00
29,059.48
Total 29,059.48
833,400.00
29,059.48
76. Income tax expense
(1) Income tax expense
In RMBItem Current period Last periodCurrent income tax expenses6,407,943.06
5,997,893.76
Deferred income tax expenses19,471.10
19,471.10
Adjustment for precious period
20,891.90
20,891.90
Total 6,448,306.06
6,038,256.76
(2) Adjustment process of accounting profit and income tax expenses
In RMBItem Current periodTotal profit33,218,964.32
Income tax expenses calculated by statutory tax rate8,304,741.08
Effect of adjusting income tax in the previous period 20,891.90
Impact of non taxable income -2,130,466.71
Unrecognized impacts of deductible temporary differences ordeductible losses on deferred income tax assets in the period
253,139.79
Income tax expenses 6,448,306.06
77. Other comprehensive income
Found more in annotations
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
In RMBItem Current period Last periodDeposit margin 3,272,399.10
23,334,956.48
Interest income 1,643,158.09
565,912.47
Intercourse funds and other 33,302,872.31
6,387,138.07
Total 38,218,429.50
30,288,007.02
Note of cash paid with other operating activities concerned:
(2) Cash paid with other operating activities concerned
In RMBItem Current period Last periodCash paid 18,510,703.27
13,629,937.63
Deposit margin 734,563.26
15,893,485.00
Intercourse funds and other 29,438,222.21
639,082.23
Total 48,683,488.74
30,162,504.86
(3) Cash received with other investment activities concerned
In RMBItem Current period Last periodReceived equity transfer payment
20,870,000.00
Total
20,870,000.00
(4) Cash paid related with investment activities
Not applicable
(5) Cash received with other financing activities concerned
Not applicable
(6) Other cash paid related with financing activities
Not applicable
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMBSupplementary information Current period Last period
1. Net profit adjusted to cash flow of
operation activities:
-- --Net profit 26,770,658.26
44,982,499.26
Add: Impairment provision for assets -599,201.43
-101,666.14
Depreciation of fixed assets, consumption ofoil assets and depreciation of productivebiology assets
11,167,637.52
11,806,505.67
Amortization of intangible assets
638,732.46
670,462.14
Amortization of long-term pending expenses 764,042.88
527,299.42
| Loss from disposal of fixed assets, intangible |
assets and other long-term assets (income islisted with “-”)
-101,666.14
Losses on scrapping of fixed assets (incomeis listed with “-“)
23,933.75
-52,583.13
Loss from change of fair value (income islisted with “-“)
356,102.35
Financial expenses (income is listed with“-”)
46,986.20
4,765,937.06
Investment loss (income is listed with “-”) -12,881,490.50
-16,711,450.93
Decrease of deferred income tax assets(increase is listed with “-”)
19,471.10
19,471.10
| Decrease of inventory (increase is listed with |
“-”)
6,275,613.37
-4,455,508.57
Decrease of operating receivable accounts(increase is listed with “-”)
48,012,932.94
-29,044,227.74
Increase of operating payable accounts(decrease is listed with “-”)
-63,289,096.70
15,128,987.30
Net cash flow arising from operatingactivities
17,306,322.20
27,434,059.30
2. Material investment and financing not
involved in cash flow
-- --
3. Net change of cash and cash equivalents: -- --Balance of cash at period end 304,937,895.62
199,241,051.16
Less: Balance of cash at year-begin 400,668,257.81
142,848,120.69
Net increasing of cash and cash equivalents -95,730,362.19
56,392,930.47
(2) Net cash paid for obtaining subsidiary in the Period
Not applicable
(3) Net cash received by disposing subsidiary in the Period
Not applicable
(4) Constitution of cash and cash equivalent
In RMBItem Ending balance Opening balanceI. Cash 304,937,895.62
400,668,257.81
Including: Cash on hand 52,095.50
120,351.17
Bank deposit available for payment304,885,800.12
400,547,906.64
at any timeIII. Balance of cash and cash equivalent atperiod-end
304,937,895.62
400,668,257.81
subsidiary in the Group
28,671,414.00
| Including: Cash and cash equivalent with restriction used by parent company or |
28,183,348.23
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
In RMBItem Ending book value Reasons for restrictionMonetary fund
28,671,414.00
Upgrading project of the Tellus-GmanGold & Jewelry Industrial Park -supervision funds for the 03# landTotal 28,671,414.00
--
82. Foreign currency monetary
(1) Foreign currency monetary
In RMBItem
Ending foreign currency
balance
Convert rate
Monetary funds -- --
| Ending RMB balance converted |
Including: USD 856.00
7.0795 6,060.05
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
HKD
Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitativeinformation for the arbitrage risks:
Not applicable
84. Government grants
(1) Government grants
In RMBCategory
Amount Item
Amount reckoned into current
gains/losses
Elevator Renewal Subsidy Fund
for Futian District Old ElevatorRenovation Working Group
139,400.00
| Elevator Renewal Subsidy Fund |
Deferred income
Epidemic subsidy 230,000.00
Non operating income 230,000.00
(2) Government grants rebate
□ Applicable √Not applicable
85. Other
VIII. Changes of consolidation rangeNot applicable
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary
Main operationplace
Registered place
Business nature
Share-holding ratio
Acquired wayDirectly IndirectlyShenzhen TellusXinyongtongAutomobileDevelopment Co.Ltd.
Shenzhen Shenzhen Commerce
100.00%
Establishment
ShenzhenDongchangYongtongAutomobileInspection Co.,Ltd.
Shenzhen Shenzhen Commerce
95.00%
Establishment
Shenzhen Bao’anShiquanIndustrial Co.,Ltd.
Shenzhen Shenzhen Commerce
100.00%
EstablishmentShenzhen SDG
Co., Ltd.
Shenzhen Shenzhen Manufacture
100.00%
| Tellus Real Estate |
EstablishmentShenzhen TellusChuangyingTechnology Co.,Ltd.
Shenzhen Shenzhen Commerce
100.00%
EstablishmentShenzhenXinyongtongAutomobileInspectionEquipment Co.Ltd.
Shenzhen Shenzhen Commerce
51.00%
Establishment
Shenzhen AutoIndustry andTradeCorporation
Shenzhen Shenzhen Commerce
100.00%
EstablishmentShenzhenAutomotive
Shenzhen Shenzhen Commerce
100.00%
Establishment
Industry SupplyCorporationShenzhen SDGHuari AutoEnterprise Co.,Ltd.
Shenzhen Shenzhen Commerce
60.00%
EstablishmentShenzhen HuariAnxinAutomobileInspection Ltd.
Shenzhen Shenzhen Commerce
100.00%
EstablishmentShenzhenZhongtianIndustrial Co,.Ltd.
Shenzhen Shenzhen Commerce
100.00%
EstablishmentShenzhen HuariTOYOTAAutomobile SalesService Co., Ltd.
Shenzhen Shenzhen Commerce
60.00%
EstablishmentAnhui TellusStarlight JewelryInvestment Co.,Ltd.
Hefei Hefei Commerce
51.00%
EstablishmentAnhui TellusStarlight JewelryInvestment Co.,Ltd.
Hefei Hefei Commerce
60.00%
EstablishmentSichuan TellusJewelry Tech.Co., Ltd.
Chengdu Chengdu Commerce
66.67%
EstablishmentShenzhen TellusBaoku SupplyChainTechnology Co.,Ltd.
Shenzhen Shenzhen Commerce
100.00%
Establishment
(2) Important non-wholly-owned subsidiary
In RMBSubsidiary
Share-holding ratio of
minority
Gains/losses attributableto minority in the Period
Dividend announced todistribute for minority in
the Period
Ending equity of
minority
Shenzhen Huari ToyotaAuto Sales Co., Ltd
40.00%
-1,572.01
| 1,676,814.56 |
Shenzhen SDG HuariAuto Enterprise Co., Ltd.
40.00%
219,946.78
| 9,921,880.04 |
Sichuan Tellus JewelryTech. Co., Ltd.
33.33%
672,524.17
3,721,379.80
| 51,457,806.19 |
(3) Main finance of the important non-wholly-owned subsidiary
In RMBSubsidiary
Ending balance Opening balanceCurrent
assets
Non-curr
entassets
Totalassets
Currentliabilities
Non-curr
entliabilities
Totalliabilities
Currentassets
Non-curr
entassets
Totalassets
Currentliabilities
Non-curr
entliabilities
Totalliabilities
Shenzhen HuariToyotaAutoSalesCo., Ltd
62,803,8
94.10
4,564,67
5.29
67,368,5
69.39
63,176,5
32.99
63,176,5
32.99
66,208,2
79.12
4,780,91
2.24
70,989,1
91.36
66,793,2
24.94
66,793,2
24.94
Shenzhen SDGHuariAutoEnterprise Co.,Ltd.
50,621,5
53.07
23,096,2
68.59
73,717,8
21.66
48,763,1
21.55
48,763,1
21.55
48,495,2
44.11
24,078,7
18.09
72,573,9
62.20
48,169,1
29.04
48,169,1
29.04
SichuanTellusJewelryTech.Co., Ltd.
153,866,
160.08
231,131.
154,097,
291.92
681,426.
681,426.
164,965,
162.17
255,849.
165,221,
011.49
1,701,03
3.97
1,701,03
3.97
In RMB
Subsidiary
Current period Last periodOperatingincome
Net profit
Totalcomprehensi
ve income
Cash flow
fromoperationactivity
Operating
income
Net profit
Totalcomprehensi
ve income
Cash flow
fromoperation
activityShenzhenHuari ToyotaAuto Sales
119,178,692.
-3,930.02
-3,930.02
1,564,040.84
106,372,651.
133,522.54
133,522.54
3,616,339.12
Co., LtdShenzhenSDG HuariAutoEnterpriseCo., Ltd.
16,003,589.0
549,866.95
549,866.95
-4,077,786.01
18,957,565.7
-58,474.42
-58,474.42
-3,733,976.75
SichuanTellusJewelry Tech
Co., Ltd.
16,963,304.2
| . |
2,017,572.52
2,017,572.52
59,442,155.9
92,578,958.7
3,852,200.31
3,852,200.31
-14,716,246.5
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or
Associatedenterprise
Main operationplace
Registered place
Business nature
Share-holding ratio Accounting
treatment oninvestment forjoint venture and
associatedenterpriseDirectly IndirectlyShenzhen TellusGman InvestmentCo., Ltd
Shenzhen Shenzhen
Investment andestablishment ofindustries
50.00%
Equity methodaccountingShenzhen ZungFu Tellus AutoService Co., Ltd.
Shenzhen Shenzhen
Sales of Benz 35.00%
Equity methodaccountingShenzhenDongfeng MotorCo., Ltd.
Shenzhen Shenzhen
and maintain
| Auto manufacture |
25.00%
Equity methodaccounting
(2) Main financial information of the important joint venture
In RMBEnding balance/Current period Opening balance/Last period
Shenzhen Tellus Gman Investment Co.,
Ltd
Shenzhen Tellus Gman Investment Co.,
LtdCurrent assets 51,890,128.83
56,022,041.04
Including: Cash and cash equivalent
8,300,876.58
9,770,310.11
Non current assets 364,310,637.32
363,958,852.65
Total Assets 416,200,766.15
419,980,893.69
Current liabilities 33,267,810.35
34,420,126.74
Non current liabilities 234,500,000.00
245,250,000.00
Total liabilities 267,767,810.35
279,670,126.74
Shareholders' equity attributable to theparent company
148,432,955.80
140,310,766.95
Share of net assets calculated byshareholding ratio
74,216,477.90
70,155,383.48
--Others 74,195,020.79
70,155,383.48
Fair value of the equity investment of jointventure with public offers concerned
37,081,024.74
41,866,318.34
Business income 6,840,207.33
7,181,939.67
Financial expenses
2,693,091.50
1,685,627.29
Income tax expenses
8,079,274.57
7,304,384.91
Other comprehensive income 8,079,274.57
7,304,384.91
51,890,128.83
56,022,041.04
Dividends received from joint venture inthe year
8,300,876.58
9,770,310.11
(3) Main financial information of the important associated enterprise
In RMBEnding balance/Current period Opening balance/Last period
Auto Service Co., Ltd.
Shenzhen DongfengMotor Co., Ltd.
Auto Service Co., Ltd.
Shenzhen DongfengMotor Co., Ltd.Current assets 230,248,569.76
435,453,513.27
229,415,509.00
479,352,285.14
Non current assets 38,674,818.99
212,332,449.42
22,735,996.00
214,963,230.31
Total Assets 268,923,388.75
647,785,962.69
252,151,505.00
694,315,515.45
Current liabilities 149,717,250.16
417,995,210.15
156,969,413.00
459,613,457.00
Non current liabilities 16,462,156.27
65,811,471.27
66,941,248.16
Total liabilities 166,179,406.43
483,806,681.42
156,969,413.00
526,554,705.16
-13,887,156.97
-11,589,462.52
Minority interests
102,743,982.32
177,866,438.24
95,182,092.00
179,350,272.81
Shareholders' equityattributable to the parentcompany
35,960,393.81
44,466,609.56
33,313,732.20
44,837,568.20
—Unrealized profit ofinternal trading
37,689,743.58
44,988,824.43
33,313,732.20
44,837,568.20
Book value of equityinvestment in associatedenterprise
542,501,386.62
154,117,515.10
568,266,810.59
219,400,462.98
Fair value of the equityinvestment of associatedenterprise with publicoffers concerned
12,502,889.67
-345,684.65
12,457,996.18
10,121,106.72
Net profit of thetermination of operation
12,502,889.67
-345,684.65
12,457,996.18
10,121,106.72
Other comprehensiveincome
17,500,000.00
64,100,548.07
Total comprehensiveincome
230,248,569.76
435,453,513.27
229,415,509.00
479,352,285.14
38,674,818.99
212,332,449.42
22,735,996.00
214,963,230.31
Dividends received fromassociated enterprise inthe year
268,923,388.75
647,785,962.69
252,151,505.00
694,315,515.45
Other explanation
(4) Financial summary for non-important Joint venture and associated enterprise
In RMBEnding balance/Current period Opening balance/Last period
Joint venture: -- --Total book value of investment 12,145,749.93
11,845,452.17
Amount based on share-holding ratio -- ---- Net profit 588,819.14
363,981.77
-- Total comprehensive income 588,819.14
363,981.77
Associated enterprise: -- --Total book value of investment 1,681,072.16
2,026,407.98
Amount based on share-holding ratio -- ---- Net profit -959,266.17
-409,250.15
-- Total comprehensive income -959,266.17
-409,250.15
Other explanation:
1. Not important joint venture：Shenzhen Tellus Hang Investment Co., Ltd.
2. Not important associated enterprise: Shenzhen Automobile Industry Import and Export Co., Ltd.
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
In RMBJoint venture/Associated
enterprise
Cumulative un-recognized
losses
Un-recognized losses notrecognized in the Period (or netprofit enjoyed in the Period)
Cumulative un-recognized
losses at period-endShenzhen Yongtong XindaInspection Equipment Co., Ltd.
916,937.25
-121,989.68
794,947.57
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Note of structured body excluding in consolidate financial statement:
Nil
6. Other
X. Risks relating to financial instrumentsXI. Fair value disclosure
1. Ending fair value of the assets and liabilities measured by fair value
In RMBItem
Ending fair valueFirst-order Second-order Third-order
TotalI. Sustaining measured byfair value
-- -- -- --(I) Tradable financialassets
115,128,569.86
| 115,128,569.86 |
1.Financial assets
measured by fair valueand with variationreckoned into currentgains/losses
115,128,569.86
| 115,128,569.86 |
(III) Other equityinstrument investment
10,176,617.20
| 10,176,617.20 |
Total assets continuouslymeasured at fair value
125,305,187.06
| 125,305,187.06 |
II. Non-persistentmeasured by fair value
-- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-orderThe financial assets measured at fair value and whose changes are included in current gain/loss refers to thefinancial products, and forecast the future cash flow at expected rate of return, the unobservable estimate is theexpected rate of return.For other equity instrument investment, the company measured the investment cost as a reasonable estimate of thefair value due to the operating environment, conditions and financial status of the invested enterprise(ChinaPudong Development Machinery Industry Co., Ltd) has not changed significantly.
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XII. Related party and related transactions
1. Parent company
Parent company Registration place Business nature Registered capital
on the Company
| Ratio of shareholding | Ratio of voting right |
on the CompanyShenzhen SDG Co.,Ltd.
Shenzhen
commerce
| Development and operation of real estate and domestic | 3582.82 million Yua |
n
49.09%
49.09%
Explanation on parent company of the enterprise
Shenzhen SDG Co., Ltd. is invested by the State-owned Assets Supervision and Administration Commission of Shenzhen MunicipalPeople's Government and was established on August 1, 1981. The company now holds a business license with a unified social creditcode of 91440300192194195C and a registered capital of 3582.82 million yuan.Ultimate controller of the Company is Shenzhen Municipal People’s Government State-Owned Assets Supervision andAdministration Commission.
2. Subsidiary
Subsidiary of the Company found more in Note IX
3. Joint venture and associated enterprise
Joint Venture of the Company found more in Note IXOther cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod:
Joint venture/Associated enterprise RelationshipShenzhen Xinyongtong Auto Service Co., Ltd. Associated companyShenzhen Tellus Xinyongtong Auto Service Co., Ltd. Associated companyShenzhen Tellus Automobile Service Chain Co., Ltd. Associated companyShenzhen Yongtong Xinda Inspection Equipment Co., Ltd. Associated companyShenzhen Xiandao New Material Co., Ltd. Associated companyShenzhen Tellus Hang Investment Co., Ltd. Joint venture
4. Other related party
Other related party Relationship with the EnterpriseShenzhen SD Petty Loan Co., Ltd.
Holding subsidiary of the parent companyShenzhen SDG Swan Industrial Co., Ltd.
Holding subsidiary of the parent companyShenzhen Machinery Equipment Imp & Exp. Company
Holding subsidiary of the parent companyShenzhen SDG Real Estate Co., Ltd Holding subsidiary of the parent companyHong Kong Yujia Investment Co, Ltd.
Holding subsidiary of the parent companyShenzhen SDG Engineering Management Co., Ltd. Holding subsidiary of the parent companyShenzhen Tellus Yangchun Real Estate Co., Ltd.
Holding subsidiary of the parent companyShenzhen Longgang Tellus Real Estate Co., Ltd.
Holding subsidiary of the parent companyShenzhen SDG Tellus Property Management Co., Ltd.
Holding subsidiary of the parent companyShenzhen SDG Service Co., Ltd. Jewelry Park Branch Holding subsidiary of the parent companyStarlight Jewelry Co., Ltd.
Shareholders
Anhui Jinzun Jewelry Co., Ltd.
Shareholders
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMBRelated party
content
Current Period
Approved transaction
limit
Whether more thanthe transaction limit(Y/N)
Last PeriodShenzhen SDGEngineeringManagement Co.,Ltd.
Accept labor 637,620.00
| Related transaction | |||
504,190.40
Shenzhen SDGTellus PropertyManagement Co.,Ltd.
Accept labor 7,001,541.81
5,816,443.82
Shenzhen SDGService Co., Ltd.Jewelry ParkBranch
Accept labor 199,490.25
Goods sold/labor service providing
In RMBRelated party Related transaction content Current Period Last Period
Ltd.
Providing services 93,615.92
| Shenzhen SD Petty Loan Co., |
95,167.03
(2) Related trusteeship management/contract & entrust management/ outsourcing
Not applicable
(3) Related lease
As a lessor for the Company:
In RMBLessee Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the PeriodShenzhen Zung Fu Tellus AutoHouse lease 1,694,444.45
| Lease income in recognized last | |
2,523,809.60
Service Co., Ltd.Shenzhen Xinyongtong AutoService Co., Ltd.
House lease 231,379.05
327,782.86
Shenzhen XinyongtongDongxiao Auto Service Co.,Ltd.
House lease 169,714.29
240,428.57
| Shenzhen SD Petty Loan Co., |
Ltd.
House lease 620,733.12
704,631.90
Shenzhen SDG Tellus PropertyManagement Co., Ltd.
House lease 25,402.04
13,288.57
Shenzhen SDG Service Co.,Ltd. Jewelry Park Branch
House lease 897,970.47
Subtotal 3,639,643.41
3,809,941.50
As lessee:
Nil
(4) Related guarantee
As guarantor
In RMBSecured party Guarantee amount Guarantee start date Guarantee expiry date
Whether the guarantee
has been fulfilled
Auto Service Co., Ltd.
3,500,000.00
| Shenzhen Zung Fu Tellus |
2007-04-17 NoAs secured partyNilExplanation on related guarantee
The Company entered into pledge contract with Zung Fu Auto Management (Shenzhen) Co., Ltd. (hereinafterreferred to as Zung Fu Shenzhen), pursuant to which, during the period from establishment of our associatecompany Shenzhen Zung Fu Tellus Auto Service Co., Ltd. (hereinafter referred to as Zung Fu Tellus) to theexpiration date of the joint venture contract between the Company and Zung Fu Shenzhen, provided that Zung FuShenzhen provides borrowings to Zung Fu Tellus under entrusted loan, Zung Fu Tellus makes borrows from bankor other financial institutions and guaranteed by Zung Fu Shenzhen, and the total borrowings shall not exceedRMB 100 million, the Company bears 35% of the obligations arising from above borrowings according to itsshareholding proportion. It was agreed for the Company to pledge 35% equity interests held in Zung Fu Tellus toZung Fu Shenzhen as counter guarantee for the above borrowings.Chengdu HezhiYuan Jewelry Co., Ltd., the related enterprise of Chengdu CaizhiYuan Jewelry Co., Ltd. which is a
shareholder of the Company’s subsidiary Sichuan Tellus Jewelry Technology Co., Ltd., and the related individualXiong Yungui, Chengdu Ruihang Jewelry Co., Ltd., a shareholder of Sichuan Tellus Jewelry Technology Co., Ltd.,and the related individual Linhang, Chengdu Zhongjin Guifu Jewelry Co., Ltd., a shareholder of Sichuan TellusJewelry Technology Co., Ltd., and the related individual Lin Tonggui, Chengdu Hengyue Trading Co., Ltd., ashareholder of Sichuan Tellus Jewelry Technology Co., Ltd., and related company Chengdu Zhongcheng ShubaoJewelry Co., Ltd. set the maximum guarantee by taking Sichuan Tellus Jewelry Technology Co., Ltd. as thecreditor, the main creditor's right of guarantee is the accounts receivable of Sichuan Tellus Jewelry TechnologyCo., Ltd. to the warrantees, Lin Qin, etc., the total amount of guarantees is 41.4799 million Yuan.
(5) Related party’s borrowed funds
In RMBRelated party Borrowing amount Starting date Maturity date NoteBorrowingLendingShenzhen Tellus HangInvestment Co., Ltd.
256,363.88
2020-01-01 2020-12-31
Payment of propertyrights representativesalary
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMBItem Current period Last periodRemuneration of directors, supervisors
and
senior executives
2,926,900 2,323,700
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable item
In RMBItem Name Related party
Ending balance Opening balanceBook balance Bad debt provision Book balance Bad debt provision
Accounts receivable
ShenzhenXinyongtong AutoService Co., Ltd.
927,602.00
927,602.00
927,602.00
927,602.00
ShenzhenXinyongtongDongxiao AutoService Co., Ltd.
680,400.00
680,400.00
680,400.00
680,400.00
Loan Co., Ltd.
221,227.49
| Shenzhen SD Petty |
2,835.84
283,583.81
2,835.84
Subtotal 1,829,229.49
1,610,837.84
1,891,585.81
1,610,837.84
Other receivable
Shenzhen TellusAutomobile ServiceChain Co., Ltd.
1,359,297.00
1,359,297.00
1,359,297.00
1,359,297.00
Shenzhen YongtongXinda InspectionEquipment Co., Ltd.
531,882.24
531,882.24
531,882.24
531,882.24
Shenzhen XiandaoNew Material Co.,Ltd.
660,790.09
660,790.09
660,790.09
660,790.09
Shenzhen TellusXinyongtong AutoService Co., Ltd.
114,776.33
114,776.33
114,776.33
114,776.33
Shenzhen TellusHang InvestmentCo., Ltd.
55,125.04
551.25
Shenzhen SDGService Co., Ltd.Jewelry Park Branch
879,119.04
Subtotal 3,545,864.70
2,666,745.66
2,721,870.70
2,667,296.91
Long-termreceivables
Shenzhen TellusAutomobile ServiceChain Co., Ltd.
2,179,203.68
2,179,203.68
2,179,203.68
2,179,203.68
Subtotal 2,179,203.68
2,179,203.68
2,179,203.68
2,179,203.68
(2) Payable item
In RMBItem Name Related party Ending book balance Opening book balanceAccounts payableShenzhen SDG Real Est
6,054,855.46
| ate Co., |
6,054,855.46
Ltd
Shenzhen MachineryEquipment Import & ExportCorporation
45,300.00
45,300.00
Shenzhen Tellus GmanInvestment Co., Ltd
22,360.00
200,000.00
Shenzhen SDG EngineeringManagement Co., Ltd.
42,205.66
Shenzhen SDG Service Co.,Ltd. Jewelry Park Branch
36,103.11
Shenzhen SDG Tellus PropertyManagement Co., Ltd.
3,372,496.27
Subtotal 9,495,011.73
6,378,464.23
Other payable
Hong Kong Yujia InvestmentCo, Ltd.
2,158,064.96
2,172,091.54
Shenzhen SDG Swan IndustrialCo., Ltd.
20,703.25
20,703.25
Shenzhen MachineryEquipment Imp & Exp.Company
1,554,196.80
1,554,196.80
Shenzhen SDG Co., Ltd. 17,448,724.94
20,378,046.74
Shenzhen Longgang TellusReal Estate Co., Ltd.
1,095,742.50
1,095,742.50
Shenzhen Tellus YangchunReal Estate Co., Ltd.
476,217.49
476,217.49
Shenzhen Tellus HangInvestment Co., Ltd.
16,765.12
Shenzhen Yongtong XindaInspection Equipment Co., Ltd.
29,940.00
29,940.00
Anhui Jinzun Jewelry Co., Ltd.
1,330,000.00
1,330,000.00
Shenzhen SDG Tellus PropertyManagement Co., Ltd.
192,227.98
192,227.98
Shenzhen Zung Fu Tellus AutoService Co., Ltd.
833,334.00
833,334.00
| Shenzhen SD Petty Loan Co., |
227,836.80
227,836.80
Ltd.
Shenzhen SDG Service Co.,Ltd. Jewelry Park Branch
6,598.00
Subtotal 25,390,351.84
28,310,337.10
7. Related party commitment
8. Other
XIII. Share-based payment
1. Overall situation of 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. Modification and termination of share-based payment
Nil
5. Other
XIV. Commitment or contingency
1. Important commitments
Important commitments on balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Contingent liability and its financial influence formed by pending litigation or arbitration
(1) In October 2005, a lawsuit was brought before Shenzhen Luo Hu District People’s Court by the Company,
which was the recognizer of Jintian Industrial (Group) Co., Ltd. (“Jintian”) to require Jintian to redress RMB
4,081,830 (principal: RMB 3,000,000, interest: RMB 1,051,380, legal fare: RMB 25,160 and executive fare:
RMB 5,290). Shenzhen Intermediate People’s Court had adjudged that the Company won the lawsuit and theforcible execution had been applied by the Company. As for the deducted amount in previous years, the Companyhas counted as debt losses.In April 2006, Shenzhen Development Bank brought an accusation against Jintian’s overdue loan two million U.S.dollars and the Company who guaranteed for this loan. The company took on the principal and all interest. Afterthat, the Company appealed to Shenzhen Luohu District People's Court, asking Jintian to repay 2,960,490 U.S.dollars and interest. In 2008, it reached Shen Luo No.937 Civil Reconciliation Agreement (2008) after themediating action taken by Shenzhen Luohu District People's Court. The agreement is as follows: If Jintian repay2,960,490 U.S. dollars before October 31, 2008, the company will exempt all the interest. If Jintian can not settlethe amount on time, it will pay the penalty in accordance with the People's Bank of China RMB benchmarklending rate over the same period.Jintian Company in process of debt service for bankruptcy reorganization. On January 29, 2016, ShenzhenIntermediate People's Court ruled that the reorganization plan of Jintian Company was completed and thebankruptcy proceedings were terminated, Jintian Company was re-allocating to the creditors, including theCompany, according to the reorganization plan. Cash of 325,000 yuan, 427,604 A shares and 163,886 B shares ofJintian Company should be distributed to the Company. As of the date of approval of this financial report, thecompany has not received the distributed property.After failed to communicate with Jintian Company about the cash and equity that should be allocated to ourcompany after Jintian Company’s bankruptcy and reorganization for more than once, the Company filed a lawsuitto the People's Court of the Qianhai Cooperation Zone, requesting the court to order Jintian Company and itsshareholders to pay.On January 9, 2020, the Qianhai Court held a public hearing on the case, and made the first-instance judgment onFebruary 13, 2020, judging that Jintian Company should pay 325,000 yuan to Tellus Group within 5 days fromthe effective date of the judgment and deliver 427,604 shares of A shares and 163,886 shares of B shares ofJintian Group (if the shares cannot be delivered, the payment can be made after converting into cash according tothe stock market price on the last day of the aforementioned performance period). Because some of the defendantsin this case cannot be served with the written judgment, and the defendants whose whereabouts are unknowninclude foreign-related parties, the Qianhai Court has published a delivery announcement for the written judgmenton February 14, 2020. As of June 30, 2020, the first-instance judgment of the case has not yet taken effect.
(2) In May 2014, our subsidiary Shenzhen Automobile Industry Trading General Company (hereinafter referred to as Automobile
Industry Trading Company) was served with a summon from people’s court in Futian district, Shenzhen, pursuant to which,Shenzhen branch of China Huarong Asset Management Co., Ltd. (“Huarong Shenzhen”) sued Auto Industrial Trading Company forjoint settlement responsibility in respect of the debt disputes between Shenzhen Guangming Watch Co., Ltd. (“Guangming Watch”)and its creditors. Including the payment of the debt principal of 350,000.00 yuan and the debt interest during the delayedperformance period of 946,697.54 yuan, the Auto Industry and Trade Company calculated the expected litigation loss of2,225,468.76 yuan based on the bank’s borrowing interest rate for the same period of the outstanding principal and correspondinginterest. Huarong Shenzhen Company applied to the Futian Court to withdraw the lawsuit on January 20, 2018, Futian Court issued
(2014) SFFMECZ No. 4712-2 Civil Ruling Paper on January 30, 2018, allowed to withdraw.
(2) If the Company has no important contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclose.
3. Other
XV. Events after balance sheet date
Not applicableXVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets exchange
Nil
4. Pension plan
Nil
5. Discontinuing operation
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
The Company determines operating (segment)divisions based on internal organizational structure, managementrequirements and internal reporting system, and determines the reporting segment based on the industry segment.Respectively assess the operating performance of automobile sales, automobile maintenance and testing, leasingand services, and jewelry wholesale and retail. The assets and liabilities used with each segment are distributedamong the different segments in proportion to their size.
(2) Financial information for reportable segment
In RMBItem
Auto sales
Automaintenance andinspection
Leasing and
services
Wholesale andretail of jewelry
Offset betweensegment
Total
income
112,524,897.49
| Main business |
19,138,132.58
58,157,419.79
16,963,304.20
-13,727,405.66
193,056,348.40
| Main business |
cost
109,843,052.17
16,287,281.23
25,058,304.97
16,010,373.45
-13,653,691.37
153,545,320.45
Total assets
67,368,569.39
22,910,066.56
2,540,076,869.66
154,256,572.67
-1,208,556,813.6
1,576,055,264.66
Total liability
63,176,532.99
14,176,110.25
617,141,672.40
2,069,464.10
-464,666,340.89
231,897,438.85
(3) The Company has no segment, or unable to disclose total assets and liability of the segment, explain
reasons
(4) Other explanation
7. Other major transaction and events makes influence on investor’s decision
Nil
8. Other
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category
In RMBCategory
Ending balance Opening balanceBook balance Bad debt provision
Bookvalue
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratioAccount receivablewith bad debtprovision accrual on
484,803.
16.30%
484,803.
100.00%
484,803.0
69.90%
484,803.0
100.00%
a single basisIncluding:
Account receivablewith bad debtprovision accrual onportfolio
2,490,04
6.10
83.70%
2,087.99
0.08%
2,487,958.11
208,798.7
30.10%
2,087.99
1.00%
206,710.76
Including:
Total
2,974,84
9.18
100.00%
486,891.
16.37%
2,487,958.11
693,601.8
100.00%
486,891.0
70.20%
206,710.76
Bad debt provision accrual on single basis:
In RMBName
Ending balanceBook balance Bad debt provision Accrual ratio Accrual causesShenzhen BijiashanEntertainment Company
172,000.00
172,000.00
100.00%
The accounts are morethan 10 years old and arenot expected to berecoveredGong Yanqing 97,806.64
97,806.64
100.00%
The accounts are morethan 10 years old and arenot expected to berecoveredGuangzhou LeminComputer Center
86,940.00
86,940.00
100.00%
The accounts are morethan 10 years old and arenot expected to berecoveredOther 128,056.44
128,056.44
100.00%
The accounts are morethan 10 years old and arenot expected to berecoveredTotal 484,803.08
484,803.08
-- --Bad debt provision accrual on portfolio:
In RMBName
Ending balanceBook balance Bad debt provision Accrual ratioWithin one year 2,490,046.10
2,087.99
0.08%
Total 2,490,046.10
2,087.99
--If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivables to disclose related information about bad-debt provisions:
√ Applicable □Not applicable
By account age
In RMBAccount age Ending balanceWithin one year (including one year) 2,490,046.10
Over 3 years 484,803.08
Over 5 years 484,803.08
Total 2,974,849.18
(2) Bad debt provision accrual, collected or reversal in the period
Not applicable
(3) Account receivable actually written-off in the period
Not applicable
(4) Top 5 account receivables at ending balance by arrears party
In RMBEnterprise
Ending balance of accounts
receivable
Proportion in total receivables
at ending balance
Bad debt preparation ending
balanceShenzhen Zung Fu Tellus AutoService Co., Ltd.
1,911,906.35
64.27%
Shenzhen BijiashanEntertainment Company
172,000.00
5.78%
172,000.00
Shenzhen Jincheng YinyuJewelry Co., Ltd.
103,272.00
3.47%
1,032.72
Gong Yanqing 97,806.64
3.29%
97,806.64
Guangzhou Lemin ComputerCenter
86,940.00
2.92%
86,940.00
Total 2,371,924.99
79.73%
357,779.36
(5) Account receivable derecognition due to financial assets transfer
Not applicable
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Not applicable
2. Other account receivable
In RMBItem Ending balance Opening balanceDividends receivable 547,184.35
547,184.35
Other account receivable 135,492,262.28
115,490,588.74
Total 136,039,446.63
116,037,773.09
(1) Interest receivable
Not applicable
(2) Dividend receivable
1) Category
In RMBItem (or invested enterprise) Ending balance Opening balanceChina Pudong Development MachineryIndustry Co., Ltd
547,184.35
547,184.35
Total 547,184.35
547,184.35
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□ Applicable √Not applicable
(3) Other account receivable
1) By nature
In RMBNature Ending book balance Opening book balanceDividend receivable 547,184.35
547,184.35
Related transactions within the scope ofconsolidation
135,184,758.23
115,271,769.06
Reserve fund 130,000.00
43,346.12
Interim payment receivable 14,408,900.22
14,406,869.73
Total 150,270,842.80
130,269,169.26
2) Accrual of bad debt provision
In RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses over next 12
months
Expected credit losses for
credit impairment occurred)
Expected credit losses forthe entire duration (withcredit impairment occurred)
Balance on Jan. 1, 2020 105,742.91
14,125,653.26
14,231,396.17
Balance of Jan. 1, 2020in the period
—— —— —— ——Balance on Jun. 30, 2020 105,742.91
14,125,653.26
14,231,396.17
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMBAccount age Ending balanceWithin one year (including one year) 135,388,827.06
Over 3 years 14,334,831.39
Over 5 years 14,334,831.39
Total 149,723,658.45
3) Bad debt provision accrual, collected or reversal in the period
Not applicable
4) Other account receivable actually written-off in the period
Not applicable
5) Top 5 other receivables at ending balance by arrears party
In RMBEnterprise Nature Ending balance Account age
Ratio in total ending
balance of otheraccount receivables
Ending balance ofbad debt reserveShenzhen ZhongtianIndustrial Co,. Ltd.
Internal intercourse 134,366,644.53
Within one year 89.74%
(Group) Co., Ltd
| Shenzhen Zhonghao | ntercourse funds |
5,000,000.00
Over 3 years 3.34%
5,000,000.00
Gold Beili ElectricalAppliances Company
| nter |
course funds
2,706,983.51
Over 3 years 1.81%
2,706,983.51
ShenzhenPetrochemical Group
| ntercourse funds |
1,923,891.98
Over 3 years 1.28%
1,923,891.98
Shenzhen SDGHuatong PackagingIndustry Co., Ltd.
| ntercourse funds |
1,212,373.79
Over 3 years 0.81%
1,212,373.79
Total -- 145,209,893.81
-- 96.98%
10,843,249.28
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
NilOther explanation:
Name Ending balance
| Book balance | Bad debt provision |
Reason for provision
| Provision ratio | ||
| Shenzhen Zhonghao (Group) Co., |
Ltd
| 5,000,000.00 | 5,000,000.00 | 100% | The accounts are more than 10 years old and are not expected to be |
recoveredGold Beili Electrical AppliancesCompany
| 2,706,983.51 | 2,706,983.51 | 100% | The accounts are more than 10 years old and |
are not exp
recoveredShenzhen Petrochemical Group
| ected to be | ||
| 1,923,891.98 |
| 1,923,891.98 | 100% | The accounts are more than 10 years old and are not expected to be |
recoveredShenzhen SDG Huatong PackagingIndustry Co., Ltd.
1,212,3
| 73.79 | 1,212,373.79 | 100% | The accounts are more than 10 years old and |
recoveredOther
| are not expected to be | |||
| 3,491,582.11 | 3,282,403.98 | 94% | The accounts are more than 10 years old and are not expected to be |
recoveredTotal 14
| ,334,831.39 | 14,125,653.26 | -- |
--
3. Long-term equity investment
In RMBItem
Ending balance Opening balanceBook balance
Impairment
provision
Book value Book balance
Impairment
provision
Book valueInvestment forsubsidiary
745,996,472.73
1,956,000.00
744,040,472.73
745,996,472.73
1,956,000.00
744,040,472.73
Investment forassociates andjoint venture
133,817,676.62
9,787,162.32
124,030,514.30
125,101,730.19
9,787,162.32
115,314,567.87
Total 879,814,149.35
11,743,162.32
868,070,987.03
871,098,202.92
11,743,162.32
859,355,040.60
(1) Investment for subsidiary
In RMBThe investedentity
Openingbalance (book
value)
Increase and decrease in current period
(book value)
| Ending balance | Ending balance |
of impairment
provisionAdditionalinvestment
Reduceinvestment
Provision forimpairment
OtherShenzhen SDGTellus RealEstate Co., Ltd.
31,152,888.87
31,152,888.87
| Shenzhen Tellus |
Chuangying
Ltd.
14,000,000.00
| Technology Co., |
14,000,000.00
| Shenzhen Tellus |
XinyongtongAutomobileDevelopmentCo. Ltd.
57,672,885.22
57,672,885.22
Shenzhen 369,680,522.9
369,680,522.90
ZhongtianIndustrial Co,.Ltd.
Shenzhen AutoIndustry andTradeCorporation
126,251,071.5
126,251,071.57
Shenzhen SDGHuari AutoEnterprise Co.,Ltd.
19,224,692.65
19,224,692.65
Shenzhen HuariTOYOTAAutomobileSales ServiceCo., Ltd.
1,807,411.52
1,807,411.52
ShenzhenXinyongtongAutomobileInspectionEquipment Co.Ltd.
10,000,000.00
10,000,000.00
Anhui TellusStarlightJewelryInvestment Co.,Ltd.
4,998,000.00
4,998,000.00
Sichuan TellusJewelry Tech.Co., Ltd.
100,000,000.0
100,000,000.00
| Shenzhen Tellus |
Baoku SupplyChain
Ltd.
9,253,000.00
| Technology Co., |
9,253,000.00
ShenzhenHanligaoTechnologyCeramics Co.,Ltd.
0.00
1,956,000.00
Total744,040,472.7
744,040,472.73
1,956,000.00
(2) Investment for associates and joint venture
In RMB
investmentcompany
Openingbalance
(bookvalue)
Current changes (+, -)
Endingbalance
(bookvalue)
Endingbalance
ofimpairme
ntprovision
Additionalinvestment
Capitalreduction
Investment gainsrecognize
d underequity
Othercomprehe
nsive
incomeadjustment
Otherequitychange
Cashdividendor profitannounce
d to
issued
Accrual
ofimpairme
ntprovision
Other
I. Joint ventureShenzhenTellusGmanInvestment Co.,Ltd
70,155,38
3.50
4,039,637.29
74,195,02
0.79
ShenzhenTellusHangInvestment Co.,Ltd.
11,845,45
2.17
300,297.7
12,145,74
9.93
Subtotal
82,000,83
5.67
4,339,935
.05
86,340,77
0.72
II. Associated enterpriseShenzhenZung FuTellusAutoServiceCo., Ltd.
33,313,73
2.20
4,376,011.38
37,689,74
3.58
HunanChangyangIndustrialCo., Ltd.
1,810,540
.70
ShenzhenJiecheng
3,225,000
.00
Co., Ltd.ShenzhenXiandaoNewMaterialsCo., Ltd.
| Electronic | ||||||||||
4,751,621.62
Subtotal
33,313,73
2.20
4,376,011.38
37,689,74
3.58
9,787,162.32
Total
115,314,5
67.87
8,715,946.43
124,030,5
14.30
9,787,162.32
4. Operating income and operating cost
In RMBItem
Current period Last periodIncome Cost Income CostMain business 13,120,854.52
3,857,719.57
19,112,054.55
| 1,774,557.00 |
Total 13,120,854.52
3,857,719.57
19,112,054.55
| 1,774,557.00 |
Income related information
In RMBContract classification Division 1 Division 2 TotalIncluding: - -Property leasing andservices
13,120,854.52
Including: - -Shenzhen
13,120,854.52
Including: - -Total
13,120,854.52
5. Investment income
In RMBItem Current period Last periodLong-term equity investment incomemeasured by cost
8,400,304.32
Long-term equity investment incomemeasured by equity
8,715,946.43
8,376,471.67
during the holding period
2,114,272.43
| Investment income of trading financial assets |
3,417,993.78
Total 19,230,523.18
11,794,465.45
XVIII. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
In RMBItem Amount Note
Governmental grants calculated into currentgains and losses (while closely related withthe normal business of the Company,
excluding the fixed-
| amount or |
fixed-
according to the unified national standard)
52,846.70
| proportion governmental subsidy |
financial li
| ability and derivative financial liability; and investment income from disposal of tradable financial assets, derivative financial assets, tradable financial |
liability and other creditors investment
4,003,521.31
Income from financial products
Switch
| back of the impairment provision for account receivable with impairment test |
on single basis and contract assets
599,201.43
Switch back of bad debt provisionOther non-
| operating income and expense |
other than the above mentioned ones
917,047.44
Income from forfeiting the lease deposit
| after the tenant returns the lease in advance |
Less: Impact on income tax 858,601.74
Impact on minority interests 521,850.19
Total 4,192,164.95
--Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √Not applicable
2. ROE and earnings per share
Profits during report period Weighted average ROE
Earnings per shareBasic EPS (Yuan/share)
Diluted EPS(Yuan/share)
stockholders of the Company
1.99%
| Net profits belong to common stock |
0.0594
0.0594
| Net profits belong to common stock |
stockholders of the Company afterdeducting nonrecurring gains andlosses
1.67%
0.0497
0.0497
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
Section XII. Documents Available for Reference
The Company reserved completed integrated documents for CSRC, SZSE, relevant departments and publicinvestor for reference, including:
1. Original Accounting Statement of Semi-Annual 2020 carrying the signatures and seals of the legal
representative, general manager, CFO and manager of Financial Department;
2. All original documents and notifications of the Company disclosed in newspapers that designated by CSRC in
report period;
3. Semi-Annual report disclosed in securities market.