HAINANJINGLIANGHOLDINGSCO.,LTD.
ANNUALREPORT2020
March27,2021
HAINANJINGLIANGHOLDINGSCO.,LTD.
ANNUALREPORT2020
PartIImportantNotesThisSummaryisbasedonthefulltextoftheAnnualReportofHainanJingliangHoldingsCo.,Ltd.(togetherwithitsconsolidatedsubsidiaries,the“Company”,exceptwherethecontextotherwiserequires).InorderforafullunderstandingoftheCompany’soperatingresults,financialpositionandfuturedevelopmentplans,investorsshouldcarefullyreadtheaforesaidfulltext,whichhasbeendisclosedtogetherwiththisSummaryonthemediadesignatedbytheChinaSecuritiesRegulatoryCommission(the“CSRC”).DirectorQingmeiPingcuodidn’tattendtheBoardMeetinginpersonduetoabusinesstrip,andauthorizeddirectorGuanYingtoattendandvoteonherbehalf.OtherdirectorsattendedtheBoardMeetingforreviewingofthisReportanditssummary.Independentauditor’smodifiedopinion:
□Applicable√NotapplicableBoard-approvedfinalcashand/orstockdividendplanforordinaryshareholdersfortheReportingPeriod:
□Applicable√NotapplicableTheCompanyhasnofinaldividendplan,eitherintheformofcashorstock.Board-approvedfinalcashand/orstockdividendplanforpreferredshareholdersfortheReportingPeriod:
□Applicable√NotapplicableThisSummaryhasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
PartIIKeyCorporateInformation
1.StockProfile
Stockname
| Stockname | JLKG,JL-B | Stockcode | 000505,200505 | |
| Stockexchangeforstocklisting | ShenzhenStockExchange | |||
| Contactinformation | BoardSecretary | SecuritiesRepresentative | ||
| Name | GuanYing | GaoDeqiu | ||
| Address | 15/F,JingLiangBuilding,NO.16EastThirdRingMiddleRoad,ChaoyangDistrict,Beijing | 15/F,JingLiangBuilding,NO.16EastThirdRingMiddleRoad,ChaoyangDistrict,Beijing | ||
Fax
| Fax | 010-51672010 | 010-51672010 |
| Tel. | 010-51672130 | 010-51672029 |
| Emailaddress | 1124387865@qq.com | gaodeqiu_jl@163.com |
2.PrincipalActivitiesorProductsintheReportingPeriodTheCompanyisprincipallyengagedinoilsandoilseedsprocessingandtrading,aswellasfoodproduction.ItrunsitsoilsandoilseedsprocessingandtradingbusinessprimarilyinBeijingCity,TianjinCityandHebeiProvinceunderthebrandsof“GuChuan”,“LvBao”,“GuBi”and“HuoNiao”,withthemainproductsbeingsoybeanoil,rapeseedoil,sunflowerseedoilandsesameoilandpaste,amongothers.Asforitsfoodproductionbusiness,itprimarilydevelops,producesandmarketssnackfoodandbreadunderthebrandsof“LittlePrince”,“MSDong”,“JianqiangDeTudou”and“GuChuan”,amongothers,withthemainproductsbeingpotatochips,cakesandpastriesandbread.ThesnackfoodbusinesscoversallprovincesandmunicipalitiesinChina,whilethebreadbusinessfocusesontheBeijing-Tianjin-Hebeiregion.Inthisregard,theCompanyisoneofthemajorsuppliersforKFCinNorthChina.
3.KeyFinancialInformation
(1)KeyFinancialInformationofthePastThreeYearsIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
Unit:RMB
| 2020 | 2019 | 2020-over-2019change(%) | 2018 | |
| Operatingrevenue | 8,741,749,912.11 | 7,440,286,465.54 | 17.49% | 7,409,124,303.41 |
| Netprofitattributabletothelistedcompany’sshareholders | 184,846,956.70 | 133,341,925.75 | 38.63% | 167,956,581.15 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems | 164,037,737.59 | 104,483,092.09 | 57.00% | 127,425,177.20 |
| Netcashgeneratedfrom/usedinoperatingactivities | -246,540,910.08 | 297,366,794.05 | -182.91% | 850,167,551.24 |
| Basicearningspershare(RMB/share) | 0.26 | 0.19 | 36.84% | 0.24 |
| Dilutedearningspershare(RMB/share) | 0.26 | 0.19 | 36.84% | 0.24 |
| Weightedaveragereturnonequity(%) | 7.17% | 5.70% | 1.47% | 7.69% |
| 31December2020 | 31December2019 | Changeof31December2020over31December2019(%) | 31December2018 | |
| Totalassets | 5,695,504,493.73 | 5,231,266,600.19 | 8.87% | 4,917,148,996.28 |
| Equityattributabletothelistedcompany’sshareholders | 2,710,571,543.53 | 2,406,039,283.87 | 12.66% | 2,272,469,925.43 |
(2)KeyFinancialInformationbyQuarter
Unit:RMB
Q1
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 1,719,261,111.71 | 2,031,511,955.92 | 1,928,342,701.75 | 3,062,634,142.73 |
| Netprofitattributabletothelistedcompany’sshareholders | 27,655,045.32 | 46,107,849.87 | 40,894,930.95 | 70,189,130.56 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems | 23,730,342.72 | 44,264,847.23 | 32,040,014.29 | 64,002,533.35 |
| Netcashgeneratedfrom/usedinoperatingactivities | 328,948,834.32 | -141,853,013.56 | -273,955,632.37 | -159,681,098.47 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
4.ShareCapitalandShareholderInformationatthePeriod-End
(1)NumbersofOrdinaryShareholdersandPreferredShareholderswithResumedVotingRightsaswellasHoldingsofTop10Shareholders
Unit:share
| Numberofordinaryshareholdersattheperiod-end | 71,627 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 68,899 | Numberofpreferredshareholderswithresumedvotingrightsattheperiod-end | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||
| Top10shareholders | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Restrictedsharesheld | Sharesinpledgeorfrozen | |||||
| Status | Shares | |||||||||
| BEIJINGGRAINGROUPCO.,LTD. | State-ownedlegalperson | 39.68% | 288,439,561 | 164,877,598 | ||||||
| BEIJINGSTATE-OWNEDCAPITALOPERATIONANDMANAGEMENTCENTER | State-ownedlegalperson | 6.67% | 48,510,460 | |||||||
| WANGYUECHENG | Domesticnaturalperson | 5.66% | 41,159,887 | 41,159,887 | ||||||
| LISHERYNZHANMING | Foreignnaturalperson | 1.23% | 8,939,300 | |||||||
| GOLDBUFFALORUNYING(TIANJIN)EQUITYINVESTMENTFUNDMANAGEMENTCO.,LTD.—GOLDBUFFALORUNYING | Other | 0.51% | 3,684,503 | |||||||
(TIANJIN)EQUITYINVESTMENTFUND(L.P.)
| (TIANJIN)EQUITYINVESTMENTFUND(L.P.) | ||||
| MEIJIANYING | Domesticnaturalperson | 0.36% | 2,604,203 | |
| ZHANGXIAOXIA | Domesticnaturalperson | 0.27% | 1,949,250 | |
| WANGXIAOXING | Domesticnaturalperson | 0.24% | 1,748,400 | |
| TANWENQIONG | Domesticnaturalperson | 0.20% | 1,419,700 | |
| ORIENTSECURITIES（HONGKONG）LIMITED | Foreignlegalperson | 0.19% | 1,354,500 | |
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ①BeijingState-OwnedCapitalOperationandManagementCenterowns100%ofBeijingGrainGroupCo.,Ltd.,andBeijingGrainGroupCo.,Ltd.isthecontrollingshareholderoftheCompany(a39.68%holding).②WangYuechengisaDeputyGeneralManageroftheCompany.Apartfromthat,theCompanydoesnotknowwhetherthereareanyotherrelatedpartiesoracting-in-concertpartiesamongthetop10shareholders. | |||
| Shareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholderWangXiaoxingholds1,748,400sharesintheCompanythroughhisaccountofcollateralsecuritiesformargintradinginSoochowSecuritiesCo.,Ltd. | |||
(2)NumberofPreferredShareholdersandShareholdingsofTop10ofThem
□Applicable√NotapplicableNopreferredshareholdersintheReportingPeriod.
(3)OwnershipandControlRelationsbetweentheActualControllerandtheCompany
39.68%
TheState-OwnedAssetsSupervisionandAdministrationCommissionofthePeople’s
GovernmentofBeijingMunicipalityBeijingState-OwnedCapitalOperation
andManagementCenter
BeijingState-OwnedCapitalOperation
andManagementCenterBeijingCapitalAgribusinessGroupCo.,
Ltd.
BeijingCapitalAgribusinessGroupCo.,
Ltd.BeijingGrainGroupCo.,Ltd.
BeijingGrainGroupCo.,Ltd.HainanJingliangHoldingsCo.,Ltd.
HainanJingliangHoldingsCo.,Ltd.100%
100%100%
100%100%
5.CorporateBondsDoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?No.
PartIIIOperatingPerformanceDiscussionandAnalysis
1.BusinessOverviewoftheReportingPeriod
(1)OverallPerformanceTheyear2020sawsudden,perplexingandtremendouschangesinmacroeconomicconditions.FacingtheimpactoftheCovid-19pandemic,theChina-UnitedSates(US)tradewar,theeconomicslowdownandothernegativefactors,wewithstoodthepressureandrespondedswiftly.Westrengthenedoperationandmanagementwhilemakingunremittingeffortsinpandemiccontrolandprevention.Asapubliccompany,weexploredandanalyzednewmeanstoincreaseourprofitabilitywhilestrengtheningtheinternalcontrolandregulatorycomplianceasthefoundationofoperationalstabilityandlong-termdevelopment.Finally,wefinishedtheyearwithsteadygrowthinoperatingperformance.Fortheyearunderreview,theCompanyrecordedoperatingrevenueofRMB8.742billion,up17.49%yearonyear;agrossprofitofRMB285million,up9.87%yearonyear;anetprofitattributabletothelistedcompany’sshareholdersofRMB185million,up38.63%yearonyear;andearningspershareofRMB0.26,up36.84%yearonyear.Assuch,theobjectivesfortheyearweresuccessfullyaccomplished.(II)MajorResultsAchieved
1.TheOilsandOilseedsDivision:StabledevelopmentinapositivedirectionTheOilsandOilseedsDivisioneffectivelyresistedtheimpactoftheChina-UStradewarandtheCovid-19pandemicbyleveragingtheadvantagesoftheoilsandoilseedsindustrychain.TheDivisionrecordedatotalprofitofRMB136millionduringtheReportingPeriod.Adheringtotheoperationmodeof"Hedging+BasisTrading+InventoryRotation"andleveragingitsexperienceincopingwiththeChina-UStradewar,JingliangTianjinmadescience-basedanalysesandjudgmentsandplannedpreemptively,finallysecuringastableoperatingprofit.Theannualoutputofsoybeanoilhitanewrecordhigh,exceedingthetargetsetfortheyear.Adoptingahedgingmode,JingliangOilsandOilseedsstrengthenedtheresearchanddevelopmentofnewproductcategoriesandimplementedmorerigorousmarketanalysis,focusingoncategorieswithstabledemandandsmallimpactfromthepandemic,suchasdomesticsoybean,sunflowerseedoilandnon-geneticallymodifiedrapeseedoil.Theannualsalesofoilsandoilseedshitanewrecordhigh.ThroughthetrusteeshipofHongjingyuan,GuchuanEdibleOilinnovatedthemodeofBeijing-InnerMongoliaindustryassistance,asthetrusteeshipisawin-wincooperationbetweentwocompaniesofcomplementaryadvantagesandthenewmodeisexpectedtoproduceagreaterpovertyalleviationeffect.Inaddition,bydevelopingtheGroup'stradeunionbenefitsplatform,theDivisionmadeall-outeffortstopromotethesalesofallcategoriesofproductsandimplementonlinepromotions.Tianweikang
continuedtodevelopitswarehousingservicesplatform,strengthenedthemanagementofedibleoilreserves,improvedthelevelofwarehousingservices,improvedtheinventoryrotationefficiencyandimplementedemergencystockallocationtasks.
2.TheFoodsDivision:StablegrowthDuetothepandemic-inducedsluggishmarketdemand,theFoodsDivisionrecordedatotalprofitofRMB174millionintheReportingPeriod.ZhejiangXiaowangziactivelyworkedtodevelopnewproductsandexplorenewchannels.The4DCornRoll,anewproduct,hasbeenlaunchedonthetopthreeplatforms,namely,Be&Cheery,LyfenandThreeSquirrels.Thesalesvolumehasgrownsignificantly.Withthe"in-storespecial-shapedislandbooth"strategyimplementedinYonghui,RT-Mart,Walmartandotherhypermarkets,theaveragesalesperstorehasgrownsignificantly.Thankstothegrowingsalesofnewproductsandstablesalesofoldproducts,agoodmomentumhasbeenmaintained.Takingadvantageofthestabilizingdomesticsituationofthepandemic,GuchuanBreadincreasedsalesatKFCandGreenTeastores,increasingtheproportionofsalesatGreenTeastoresanddistributorsandfurtheroptimizingthecustomer/channelstructure.
3.StableexpansionthroughacquisitionandtrusteeshipFollowingtheplanof"implementabatch","improveabatch"and"expandabatch",acquisitionandrestructuringwereimplementedinalayer-by-layer,step-by-stepapproach.DuringtheReportingPeriod,wesuccessfullyacquiredtheremainingequitiesofZhejiangXiaowangzi.Throughthisproject,wegainedexperienceandlaidafoundationforfutureacquisitionandrestructuringprojects.WeimprovedthemanagementofthetwocompaniesundertheCompany'strusteeship,HongjingyuanandShanghaiSunlon,byprovidingstandardizedguidanceandprofessionalmanagement,improvingtheircorporategovernancestructuresandstreamliningtheiroperationprocesses.Thepresettargetsforthetrusteeshipshavebeenachieved.
4.SolidandeffectiveeffortsinpandemiccontrolandpreventionWeactivelyrespondedtotheseverechallengesposedbytheCovid-19pandemic,implementingtargetedcontrolandpreventiveactionsinawell-plannedmanner.Promptlyrespondingtothecallsfromgovernmentauthorities,weestablishedapandemiccontrolandpreventionleadershipteamandapandemiccontrolandpreventioninspectionteam,establishedapandemiccontrolandpreventionsystemandimplementedvariouspandemiccontrolandpreventionmeasuresinastrictlydisciplinedandthoroughlyplannedmanner.WeactivelyworkedtousethefinancialsupportpoliciesforpandemicrelieftoreducetheCompany'scostofcapital.
5.ContinuousimprovementinmanagementlevelFirst,withtheimplementationofanonlineofficeplatform,thepowerofexecutionhasbeenimproved,betterensuringtheimplementationoftheCompany'spoliciesandplans.Second,apersonneldevelopmentsystemhasbeenestablishedandimproved,whichhasservedtopromotemulti-directionalcommunicationandupper-lowerinteraction.TheJingliangHoldingsForumwascreatedasameanstoimprovetheoverallqualityoftheCompany'smiddleandseniormanagers,promotetheirmarket-consciousnessandsharetheirmanagementexperience.Third,piloteffortsweremadetodriveregulatorycompliance.Weinvestigatedourheadquartersandsubsidiariesforregulatorycompliancebatchbybatch,reviewedtheregulatorycompliancepolicies,liabilitiesand
risksofourmajorbusinessesandupdatedthechecklistofregulatorycompliancerisksassociatedwithourequityinvestments,therebylayingasolidfoundationforregulatorycomplianceandimprovingtheregulatorycompliancemanagementlevel.
2.SignificantChangetoPrincipalActivitiesintheReportingPeriod
□Yes√No
3.ProductCategoryContributingover10%ofPrincipalBusinessRevenueorProfit
√Applicable□Notapplicable
Unit:RMB
Productcategory
| Productcategory | Operatingrevenue | Operatingprofit | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeinoperatingprofit(%) | YoYchangeingrossprofitmargin(%) |
| Oilsandoilseeds | 7,799,378,959.10 | 136,231,943.72 | 4.64% | 20.90% | 52.85% | 0.15% |
| Foodprocessing | 898,193,522.11 | 174,173,301.85 | 29.46% | -4.52% | -6.77% | -2.18% |
4.BusinessSeasonalitythatCallsforSpecialAttention
□Yes√No
5.SignificantYoYChangesinOperatingRevenue,CostofSalesandNetProfitAttributabletotheListedCompany’sOrdinaryShareholdersorTheirCompositions
√Applicable□NotapplicableNetprofitattributabletothelistedcompany’sordinaryshareholdersincreasedyearonyearprimarilydrivenbyagreaterprocessingvolumeasaresultofrecoveryinmarketdemand,theincreaseinbothrevenueandprofitduetoarisingprofitfromtheoilspressingbusiness,aswellastheacquisitionofnon-controllinginterests,inthecurrentperiod.
6.Delisting
□Applicable√Notapplicable
7.MattersRelatedtoFinancialReporting
(1)YoYChangestoAccountingPolicies,AccountingEstimatesorMeasurementMethods
√Applicable□NotapplicableOn5July2017,theMinistryofFinance(MOF)issuedtheNoticeonRevisingandImplementingtheAccounting
StandardsNo.14:Revenues(Caikuai[2017]No.22).AccordingtotherevisedversionoftheaccountingstandardsandtherequirementslaiddowninthenoticeoftheMOF,theCompanystartedimplementingthenewrevenueaccountingstandardson1January2020.Accordingtorequirementsforthetransitionfromtheoldtothenewaccountingstandards,theCompanystartedimplementingthenewstandardson1January2020butonlyadjustedthedescriptionandamountofrelevantitemsoftheyear-beginningfinancialstatements,madenoadjustmentstocomparablewithin-periodinformationandmadenoretrospectiveadjustmentstothefinancialstatementsoftheCompany'spreviousfiscalyears.
(2)RetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√NotapplicableNosuchcases.
(3)YoYChangestotheScopeofConsolidatedFinancialStatements
□Applicable√NotapplicableNosuchcases.
HainanJingliangHoldingsCo.,Ltd.
27March2021
Auditor’sReport
BakerTillyChina[2021]No.16171AllShareholdersofHainanJingliangHoldingsCo.,Ltd.:
I.AuditOpinionWehaveauditedthefinancialstatementsofHainanJingliangHoldingsCo.,Ltd.(hereinafterreferredtoasthe"JingliangHoldings"),whichcomprisetheconsolidatedbalancesheetandbalancesheetofparentcompanyasatDecember31,2020,consolidatedincomestatementandincomestatementofparentcompany,consolidatedstatementcashflowstatementandcashflowstatementofparentcompany,consolidatedstatementofchangesinshareholders’equityandstatementofchangesinshareholders’equityofparentcompanyandnotestorelevantfinancialstatementsin2020.Inouropinion,theattachedfinancialstatementsarepreparedinaccordancewithAccountingStandardsforBusinessEnterprisesandAccountingSystemforBusinessEnterprisesinallmajoraspects,andfairlyreflecttheJingliangHoldings’sconsolidatedandparentcompany'sfinancialpositionasatDecember31,2020,aswellastheconsolidatedandparentcompany'soperationresultsandcashflowsin2020.
II.BasisofFormingAuditOpinionsWeconductedtheauditworkinaccordancewiththeregulationsofAuditingStandardsforChineseCertifiedPublicAccountant."ResponsibilityofCertifiedPublicAccountantforAuditingFinancialStatements",thepartoftheauditreportfurtherelaboratedourresponsibilitiesunderthesestandards.InaccordancewiththecodeofprofessionalethicsfortheChineseCertifiedPublicAccountants,weareindependentofJingliangHoldingsandperformotherresponsibilitiesinthefieldofprofessionalethics.Webelievedthattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinions.
III.KeyAuditMattersWeconsideredthatkeyauditmattersarethemostimportantitemstoauditthecurrentfinancialstatementsaccordingtoourprofessionaljudgment.Thesemattersshallbedealtwithinthecontextofanauditandopinionofthefinancialstatementsasawholeandwedonotcommentonthesemattersinisolation.Weidentifiedthefollowingitemsaskeyaudititemstobecommunicatedintheauditreport.(I)Revenueconfirmation
1.ItemsDescriptionIn2020,asstatedinthe"NoteVI,(36)"ofthefinancialstatementsofJingliangHoldings,theoperatingincomein
theconsolidatedincomestatementofJingliangholdingsisRMB8,741,749,912.11,whichismainlygeneratedfromoiltrade,foodproduction,processingandsales.TheoccurrenceandintegrityofoperatingrevenuehaveasignificantimpactontheoperatingresultsofJingliangHoldings.Therefore,wedeterminetheoccurrenceandintegrityofoperatingrevenueaskeyauditmatters.
2.AuditResponseThemainauditproceduresweperformedareasfollows:
(1)UnderstandingandtestingthewholeprocessandrelevantsystemofsalesandcollectioncycleofJingliangHoldings,andconductingcontrollingtestonsalesandcollectioncycleandevaluatingtheeffectivenessofitsdesignandoperation;
(2)CheckingwhethertheaccountingpoliciesandspecificmethodsofrevenueconfirmationofJingliangHoldingsandrevenueconfirmationtimingconformtotherequirementsoftheaccountingstandardsforbusinessenterprises;
(3)Carryingouttheanalysisprocedurefortheoperatingincome,analyzingtherationalityofthechangeofthegrossprofitrateofJingliangHoldings,comparingwiththesimilarindicatorsinthepreviousperiod,andidentifyingandinvestigatingthecausesofabnormalfluctuations.
(4)Takesamplingmethodtocheckthecontracts,invoices,deliveryordersandotheroriginaldocumentsrelatedtorevenueconfirmationofJingliangHoldings;
(5)Checkingtherelevantcontracts,invoices,issueorderandotherrevenuerecognitiondocumentsfortheoperatingincomerecognizedbeforeandafterthebalancesheetdateofJingliangHoldings,executingthecut-offtestprocedure,andevaluatingwhetherthesalesincomeofJingliangHoldingsisrecordedintheappropriateaccountingperiod;
(6)Performingconfirmationproceduresforaccountsreceivableandconductingsubstitutiontestsonunrespondedsamples.(II)GoodwillImpairmentProvision
1.ItemsDescriptionAsatDecember31,2020,asstatedin"NoteVI.16"ofconsolidatedfinancialstatementofJingliangHoldings,thegoodwillamountintheconsolidatedbalancesheetofthecompanyisRMB191,394,422.51,whichwasgeneratedfromacquiringZhejiangLittlePrinceFoodCo.,Ltd.(hereinafterreferredtoasthe“ZhejiangLittlePrince”)in2015.Themanagementconductedimpairmenttestonthementionedgoodwillaccordingtotheaccountingpolicyof"NoteIII,(20)"ofthefinancialstatementsofJingliangHoldings,determinedtherecoverableamountoftheassetgroupcontainingthegoodwillbasedonthepredictionofpresentvalueoftheexpectedfuturecashflowonthebasisofthecontinuousoperation,andconsideredthatprovisionforimpairmentofgoodwillisnotrequired.
Thekeyparametersusedintheimpairmenttestofgoodwillincludedexpectedrevenuegrowthrate,pre-taxoperatingprofitrate,anddiscountrateetc.,whichmayinvolvesignificantaccountingestimationandjudgment.Themanagementfacetheriskofpreferencewhenselectingassumptionsandestimations.Therefore,wedeterminedtheimpairmentprovisionofgoodwillasakeyauditmatter.
2.AuditResponseThemainauditproceduresweperformedareasfollows:
(1)Understandingandevaluatingthedesignofinternalcontrolrelatedtothegoodwillimpairmenttestandeffectivenessofkeycontrolexecution,whichincludestheadoptedkeyassumptionsandparametersandtherelevantinternalcontrol;
(2)Evaluatingtheappropriatenessofthegoodwillimpairmenttestmethodadoptedbythemanagement.Weevaluatetherationalityofthemainassessmentassumptionsandthekeyparametersusedinthegoodwillimpairmenttest,suchastheexpectedincome,growthrate,pre-taxoperatingprofitrate,anddiscountratethroughanalyingofthemaineconomicindicatorsofpastyears,interviewingwiththemanagement,consideringthemarketdevelopment,andcomparingtheindustryormarketdata.
(3)Testingtheaccuracyofthecalculationprocessofgoodwillimpairmenttest;
(4)Evaluatingtheaccuracyofthepredictionoftherealizedannualdata.Forexample,comparingtheexpectedfuturecashflowofthepreviousyearoracquisitiontimewiththeactualbusinessperformanceinthecurrentyearandconsideringanymanagementbiasthatexistintheprocessofgoodwillimpairmenttestthatconductedbymanagement.
(5)Forthegoodwillimpairmenttestreportpreparedbythethird-partyexpertsemployedbytheauditedunit,inadditiontotheauditprocedures(1)to(4)above,theauditteamalsoevaluatesthecompetency,professionalqualityandobjectivityofthethird-partyexpertsandrecordstheevaluationresultsintheauditdraft,whichincludesobtainingtheprofessionalqualificationofthethird-partyexperts,suchashavingthesecuritiesperiodWehaveevaluatedtheaccuracyoftheforecastdatafortheyearofrealization,suchasbusinesslicenseofanappraisalinstitutionwithsecuritiesandfuturesqualificationandthequalificationcertificateoftheassetappraiser,etc.
IV.OtherInformationThemanagementofJingliangHoldings(hereinafterreferredtoasmanagement)wasresponsibleforotherinformation,whichincludesinformationcoveredinJingliangHoldings2020annualreport,butnotthefinancialstatementsandourauditreport.Ourauditopinionsonthefinancialstatementsdidn’tcoverotherinformation,andwedonotpublishanyformofassuranceconclusionofotherinformation.
Incombinationwithourauditofthefinancialstatements,ourresponsibilityistoreadotherinformationandconsideranymaterialinconsistenciesormaterialmisstatementappearsbetweenotherinformationandthefinancialstatementsorthesituationwelearnedintheauditprocessBasedontheworkwehaveperformed,weareexpectedtoreportthefactofrecognizedmaterialmisstatementinotherinformation.Inthisrespect,wedonothaveanymatterstoreport.V.ResponsibilitiesofManagementandGovernanceforFinancialStatementsThemanagementisresponsibleforpreparingtheconsolidatedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprisestoachievefairreflectionandtodesign,implementandmaintainnecessaryinternalcontrolstoensurethattheconsolidatedfinancialstatementsarefreefrommaterialmisstatementduetofraudorerror.Whenpreparingthefinancialstatements,managementisresponsibleforassessingthesustainableoperationcapabilityofJingliangHoldings,disclosingmattersrelatedtothesustainableoperation(ifapplicable),andapplyingthecontinuingoperationassumption,unlessmanagementplanstoliquidatetheJingliangHoldings,terminateoperations,orhavenootherrealisticoptions.ThegovernanceisresponsibleforsupervisingthefinancialreportingprocessofJingliangHoldings.
VI.TheResponsibilityofCertifiedPublicAccountantsforAuditingFinancialStatementsOurgoalistoobtainreasonableassuranceonnomaterialmisstatementduetofraudorerrorinthewholefinancialstatementsandtoissueanauditreportcontainingauditopinions.Reasonableassurancewasahighlevelofassurance,butitdoesnotguaranteethatthematerialmisstatementinauditprocessinaccordancewiththeauditstandardscanalwaysbefound.Misstatementsmayresultfromfraudorerrorandaregenerallyconsideredtobematerialiftheindividualoraggregatedmisstatementsarereasonablyexpectedtoaffecttheeconomicdecisionsmadebyusersofthefinancialstatementsonthebasisoftheconsolidatedfinancialstatements.Intheprocessofperformingtheauditinaccordancewiththeauditstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticism.Meanwhile,wealsoimplementthefollowingwork:
(1)Identifyingandassessingtheriskofmaterialmisstatementintheconsolidatedfinancialstatementsduetofraudorerror,designingandimplementingauditprocedurestoaddresstheserisks,andobtainingsufficientandappropriateauditevidencesasthebasisforissuingauditopinions.Sincefraudmayinvolvecollusion,forgery,willfulomission,misrepresentationoroverridinginternalcontrol,theriskoffailingtorecognizeamaterialmisstatementresultingfromfraudishigherthantheriskoffailingtorecognizeamaterialmisstatementresultingfromerror.
(2)Understandinginternalcontrolsrelatedtoaudittodesignappropriateauditprocedures.
(3)Evaluatingtheappropriatenessofaccountingpoliciesadoptedbymanagementandtherationalityofaccountingestimatesandrelevantdisclosures.
(4)Drawingconclusionsabouttheappropriatenessofgoingconcernassumptionadoptedbymanagement.Meanwhile,drawingconclusionsaboutthemattersthatmayleadtosignificantdoubtsaboutsustainableoperationcapacityofJingliangHoldingsorsignificantuncertaintiesofsituation.Ifweconcludedthatsignificantuncertaintiesexist,accordingtotherequirementsoftheauditstandards,weshoulddrawtheattentionofstatementuserstotherelevantdisclosuresintheconsolidatedfinancialstatementsintheauditreport.Ifthedisclosurewasinsufficient,weshouldexpressanon-unqualifiedopinion.Ourconclusionswerebasedonavailableinformationasattheauditreportdate.However,futureeventsorcircumstancesmaycausetheunsustainableoperationoftheJingliangHoldings.
(5)Evaluatingtheoverallpresentation,structureandcontentoftheconsolidatedfinancialstatementsandassessingwhetherthefinancialstatementsfairlyreflectedrelevanttransactionsandevents.
(6)ObtainingsufficientandappropriateauditevidencesoffinancialinformationofentitiesorbusinessactivitiesinJingliangHoldingstoissueauditopinionsonconsolidatedfinancialstatements.Weareresponsibleforguiding,supervisingandexecutinggroupauditsandtakefullresponsibilityforauditopinions.Wecommunicatedwithgovernanceabouttheplannedscopeofaudit,timearrangement,andthemajorauditfindings,includingtheconcernedinternalcontroldeficienciesthatweidentifiedduringtheauditingprocess.Wealsoprovidegovernancewithastatementthatwehavecompliedwiththeprofessionalethicalrequirementsrelatingtoourindependenceandcommunicatewithgovernanceallrelationshipsandothermattersthatmayreasonablybeconsideredtoaffectourindependence,aswellastherelevantprecautions,ifapplicable.Amongthemattersthatwehavecommunicatedgovernance,wedeterminethemostimportantmatterstotheauditofthecurrentconsolidatedfinancialstatements,andthusconstitutethekeyauditmatters.Wedescribethesemattersintheauditreport,unlesslawsandregulationsprohibitpublicdisclosureofsuchmattersor,inrarecircumstances,wedeterminethatweshouldnotcommunicateamatterinourauditreportifitisreasonablyexpectedthatthenegativeconsequencesofcommunicatingsuchmatterinourauditreportwouldoutweighthebenefitsinthepublicinterest.
Beijing,ChinaMar.25th,,2021
| Beijing,ChinaMar.25th,,2021 | ChineseCertifiedPublicAccountant:(Engagementpartner) | WangJijun |
| ChineseCertifiedPublicAccountant: | ShiTao |
HainanJingliangHoldingsCo.,Ltd.Notestothe2020FinancialStatements(Unlessotherwisestated,theamountunitisRMBYuan)
I.BasicInformationoftheCompany
1.Placeofincorporation,formoforganizationandheadofficeaddressHainanJingliangHoldingsCo.,Ltd.(hereinafterreferredtoas"theCompany"or"Company"or"JingliangHoldings")isestablishedinaccordancewiththeHainanProvincialPeople'sGovernmentGeneralOfficeQFBH(1992)No.1,approvedbyQY(1992)SGZNo.6DocumentofthePeople'sBankofHainanProvinceandre-registeredbyHainanPearlRiverEnterpriseCompanyonJanuary11,1992.TheCompanyissued81,880,000sharesintotaluponre-registration,ofwhich60,793,600shareswereconvertedfromthenetassetsoftheoriginalcompanyand21,086,400shareswerenewlyissued.AndthenameoftheCompanyisHainanPearlRiverEnterpriseCo.,Ltd.Thebusinesslicenseregistrationnumberofthejoint-stockcompanyis20128455-6,andtheholdingparentcompanyGuangzhouPearlRiverEnterpriseGroupholds36,393,600shares,accountingfor44.45%.ApprovedbyZGB(1992)No.83DocumentofthePeople'sBankofChinainDecember1992,theadditional21,086,400shareswerelistedontheShenzhenStockExchangefortrading.Theindustryinvolvedisrealestate.
OnMarch25,1993,inresponsetoQGBH(1993)No.028ofHainanProvincialLeadingGroupOfficeandSRYFZ(1993)No.099ofShenzhenSpecialEconomicZoneBranchofthePeople'sBankofChina,theCompanyincreaseditssharecapitalbyconvertingtheoriginalsharecapitalinto139,196,000shares(accordingtodistributionof10,deliveryof5andtransferof2),withthecontrollingshareholderGuangzhouPearlRiverEnterprisesGroupholding48,969,120sharesaccountingfor35.18%attheendof1993.
In1994,thesharecapitalwasincreasedby10to10,andthetotalsharecapitalwas278,392,000sharesaftertheincrease.Thecontrollingshareholder,GuangzhouPearlRiverEnterprisesGroup,holds97,938,240shares,accountingfor
35.18%.
In1995,theissuanceof50,000,000BShareswasapprovedbySZBF(1995)No.45andSZBF(1995)No.12.ThesharecapitaloftheCompanywasincreasedby10:1.5onthebasisofthesharecapitalaftertheadditionalBshareswereissued,andthesharecapitaloftheCompanyaftertheincreasewas377,650,800shares.Theholdingparentcompany,GuangzhouPearlRiverEnterprisesGroup,held112,628,976shares,accountingfor29.82%ofthetotal.
In1999,GuangzhouPearlRiverEnterprisesGrouptransferredall112,628,976sharestoBeijingWanfaRealEstateDevelopmentCo.,Ltd..AfterthetransferofshareswascompletedinJune1999,BeijingWanfaRealEstateDevelopmentCo.,Ltd.held112,628,976sharesoftheCompany,accountingfor29.82%ofthetotalsharesoftheCompany,andbecamethecontrollingshareholderoftheCompany.
OnJanuary10,2000,thenameoftheCompanywaschangedtoHainanPearlRiverHoldingCo.,Ltd.andtheBusiness
LicenseforEnterpriseLegalPersonwasrenewedbyIndustrial&CommerceAdministrationBureauofHainanProvince.
OnAugust17,2006,thereformplanofthesplitsharestructureoftheCompanywasimplemented.TheCompanytransferred49,094,604sharesofcapitalstocktoallshareholdersattheratioof10to1.3.Theoriginalnon-tradableshareholderstransferredtheincreasedsharestothetradableA-shareholders.BeijingWanfaRealEstateDevelopmentCo.,Ltd.reimbursedtheconsiderationsharesofthenon-tradableshareholderswhohavenotexpresslyexpressedtheiropinions.Theconvertedtotalsharecapitalwas426,745,404shares,andtheoriginalcontrollingshareholderBeijingWanfaRealEstateDevelopmentCo.,Ltd.held107,993,698shares,accountingfor25.31%.Shareholdersofnon-tradablesharesrepaid3,289,780sharesinconsiderationofthesplitsharestructurein2007.Shareholdersofnon-tradablesharesrepaid1,196,000sharesinconsiderationofthesplitsharestructurein2009.
On2September2016,BeijingWanfaRealEstateDevelopmentCo.,Ltd.,theoriginalcontrollingshareholder,transferredallofits112,479,478sharestoBeijingGrainGroupCo.,Ltd.(hereinafterreferredtoas"BeijingGrainGroup").UponcompletionofthesharetransferinSeptember2016,BeijingGrainGroupCo.,Ltd.held112,479,478shares,accountingfor26.36%ofthetotalsharesoftheCompany.InNovember2016,basedontheconfidenceinthesubjectmatterofthematerialassetrestructuringandthefuturedevelopmentoftheCompany,BeijingGrainGroupCo.,Ltd.decidedtoincreaseitsshareholdingthroughcentralizedbiddinginthesecondarymarket.Aftertheincrease,itheld123,561,963sharesoftheCompany,accountingfor28.95%ofthetotalnumberofshares,andbecamethelargestshareholderoftheCompany.
TheCompanydeterminedJuly31,2017asthedeliverydateofmaterialassetsinaccordancewiththematerialassetsrestructuringplanandthedeliveryagreement.OnSeptember14,2017,approvedpursuanttotheresolutionoftheSecondExtraordinaryGeneralMeetingofShareholdersoftheCompanyonNovember18,2016andtheApprovalReplyoftheChinaSecuritiesRegulatoryCommissiondatedJuly28,2017OnApprovalofHainanPearlRiverHoldingCo.,Ltd.toPurchaseAssetsandRaiseSupportingFundsfromBeijingGrainGroupCo.,Ltd.(ZJXK(2017)No.1391):1)TheCompanypurchasedassetsfromtheoriginalshareholdersofBeijingGrainFoodCo.,Ltd.(hereinafterreferredtoasBeijingGrainFood)byissuing210,079,552sharesofthebalancebetweenthetransactionpriceoftheinjectedassetsandtheassetstobepurchased(thedifferencebetweenthetransactionpriceoftheinjectedassetsandtheassetstobepurchasedwasRMB1,699.5436millionyuan).TheparvalueintheissuancewasRMB1.00pershareandtheissuancepricewasRMB8.09pershare;2)TheCompanyhasissued48,965,408non-publicsharesoftheCompanytoBeijingGrainGroupforthepurposeofpurchasingthesupportingfundsraisedfromtheassetsoftheissuanceofshares.TheparvaluepershareoftheCompanywasRMB1.00andtheissuancepricewasRMB8.82pershare.TheshareholderBeijingGrainGroupconductedsubscriptioninmonetaryfunds.Uponcompletionoftheissue,theregisteredcapitalwasRMB685,790,364.00andthesharecapitalwasRMB685,790,364.00.BeijingGrainGroup,whichaccountedfor42.06%ofthetotalnumberofshares,becamethelargestshareholderoftheCompany.
OnNovember21,2019,withtheapprovalofBeijingShounongFoodGroupCo.,Ltd.(BeijingShounongFoodpublish[2019]No.212),ApprovalonthePlanofPurchasingAssetsbyCashandIssuingSharesofHainanJingliangHoldingsCo.,Ltd,OnApril,2020,withtheapprovalofApprovalofHainanJingliangHoldingCo.,Ltd.IssuanceSharestoWang
YuechengtoPurchaseAssetsbyChinaSecuritiesRegulatoryCommission[2020]No.610,thecompanyshallnotissuemorethan41,159,887newsharesinprivateofferingtoraisefundssupportingthepurchaseofassetsthroughtheissuedshares.TheCompanyanditssubsidiary,BeijingJingliangFoodCo.,Ltd.,purchasedthe25.1149%equitystakeofZhejiangLittlePrincebycashandissuanceofshares.AsofDecember31,2020,thecompanyhasissued726,950,251.00shares,andthecompany'ssharecapitalis726,950,251.00yuan;UniformSocialCreditCode:914600002012845568;Registrationauthority:HainanMarketSupervisionAdministration;Companytype:LimitedCompany(Listed,State-controlled);Registeredaddress:F29,DihaoBuilding,PearlRiverSquare,BinhaiAvenue,HaikouCity;Legalrepresentative:LiShaoling.
2.ThenatureoftheCompany'sbusinessanditsmainbusinessactivities
TheCompanybelongstomanufacturing-agriculturalandsidelinefoodprocessingindustry.Itsmainbusinessativitesmainlyincludes:food,beverages,agriculturalandsidelineproducts,vegetableproteinsandtheirproducts,organicfertilizers,microbialfertilizers,productionandmarketingofagriculturalfertilizers;landconsolidation,soilremediation;agriculturalcomprehensiveplantingdevelopment,animalhusbandryandaquaculture,agriculturalequipmentproductionandmarketing;computernetworktechnology,investmentincommunicationprojects,researchanddevelopmentandapplicationofhigh-techproducts;investmentandconsultationofenvironmentalprotectionprojects;animation,graphicdesign;importandexporttradeingoodsandtechnology;rentalofownpremises.
TheCompanyanditssubsidiariesareprincipallyengagedintheprocessing,productionandsalesoffoodstuffs,agriculturalandsidelineproducts,grease,oils,andleisurefoods.
3.Thenameoftheparentcompanyandtheultimateparentcompany.
TheparentcompanyofthecompanyisBeijingGrainGroupCo.,Ltd.,andtheultimateparentcompanyisBeijingshounongFoodGroupCo.,Ltd.
4.Theapprovalinstitutionandtheapprovaldateofthefinancialstatements.
ThesefinancialstatementshavebeenapprovedandreportedbytheBoardofDirectorsoftheCompanyinitsresolutiondatedMarch25,2021.
5.Consolidationscope
Theconsolidatedscopeoftheconsolidatedfinancialstatementsofthecompanyisdeterminedonthebasisofcontrol,includingthefinancialstatementsofthecompanyandallsubsidiaries.SubsidiariesrefertoenterprisesorentitiescontrolledbytheCompany.
Atotalof17subsidiariesoftheCompanywereincludedinthescopeofconsolidationon31December,2020,asdetailedinNote8"InterestsinOtherEntities".TheconsolidationscopeoftheCompanyforthecurrentperiodissameasthepreviousperiodasdetailedinNote7,"ChangeinConsolidationScope".II.PreparationBasisforFinancialStatements
1.PreparationBasisBasedontheassumptionofgoingconcernandaccordingtoactualtransactionevents,thefinancialstatementsarepreparedinaccordancewiththerelevantprovisionsofAccountingStandardforBusinessEnterprisesandthefollowingstatedSignificantAccountingPoliciesandEstimates.
2.GoingconcernTheCompanyhasagoingconcerncapabilityfor12monthsfromtheendofthereportingperiodandnomaterialmattersaffectingthecompany'sgoingconcerncapabilitywerefound.Therefore,thefinancialstatementsarepresentedonagoingconcernbasisisreasonable.III.SignificantAccountingPoliciesandEstimatesTheCompanyanditssubsidiariesareengagedintheprocessing,productionandsalesoffood,agriculturalandsidelineproducts,grease,oilandleisurefood.Accordingtothecharacteristicsofactualproductionandoperationandtheprovisionsofrelevantaccountingstandardsforbusinessenterprises,theCompanyanditssubsidiarieshaveformulatedanumberofspecificaccountingpoliciesandaccountingestimatesfortransactionsandeventssuchasrevenuerecognition.Fordetails,pleaserefertothedescriptionsinNoteⅢ,25“Revenue".Fordescriptionsofthesignificantaccountingjudgmentsandestimatesmadebythemanagement,pleaserefertoNoteⅢ,31“SignificantAccountingJudgmentsandEstimates"
1.StatementofComplianceofAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanybasedontheabovepreparationbasisconformtotherequirementsoftheAccountingStandardsforBusinessEnterprisesandtheirapplicationguidelines,explanationsandotherrelevantprovisions(collectivelyreferredtoas"ASBE")andtrulyandcompletelyreflecttheCompany'sfinancialstatus,operatingresults,cashflowandotherrelevantinformation.
Inaddition,thepreparationofthisfinancialreportreferstotheRulesforPreparationandReportingInformationDisclosureofCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReportsrevisedbyChinaSecuritiesRegulatoryCommissionin2014andthepresentationanddisclosurerequirementsinNoticeonMattersRelatedtotheImplementationoftheNewAccountingStandardsforEnterprisesbyListedCompanies(AccountingDepartmentLetter[2018]No.453)
2.AccountingPeriodandBusinessCycle
TheaccountingperiodoftheCompanyisdividedintoanannualperiodandaninterimperiod.Theaccountinginterimperiodreferstothereportingperiodshorterthanafullaccountingyear.ThefiscalyearoftheCompanyadoptstheGregoriancalendaryear,thatis,fromJanuary1toDecember31ofeachyear.
ThenormalbusinesscycleistheperiodfromthetimetheCompanypurchasesassetsforprocessingtothetimewhencashorcashequivalentsarerealized.TheCompanyuses12monthsasanbusinesscycleandusesitasaliquidityclassificationstandardforassetsandliabilities.
3.BookkeepingStandardCurrency
RMBisthecurrencyinthemaineconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.TheCompanyanditsdomesticsubsidiariesuseRMBasthebookkeepingstandardcurrency.TheoffshoresubsidiariesoftheCompanydetermineUSDastheirbookkeepingstandardcurrencybasedonthecurrenciesinthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheCompanyinpreparingthesefinancialstatementsisRMB.
4.TheAccountingTreatmentofBusinessCombinationundertheSameControlandDifferentControl
BusinessCombinationreferstothetransactionoreventinwhichtwoormoreseparateenterprisesaremergedtoformonereportingentity.Businesscombinationcanbedividedintobusinesscombinationunderthesamecontrolandbusinesscombinationunderdifferentcontrol.
(1)Businesscombinationunderthesamecontrol
Enterprisesparticipatinginthecombinationareultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthecombination,andthecontrolisnottemporary,soitisthebusinesscombinationunderthesamecontrol.Incaseofbusinesscombinationunderthesamecontrol,thepartythatobtainscontrolofotherenterprisesparticipatinginthecombinationonthecombinationdateshallbethecombinationparty,andtheotherenterprisesparticipatinginthecombinationshallbethemergedparty.Thecombinationdatereferstothedateonwhichthecombinationpartyactuallyacquirescontroloverthemergedparty.
Theassetsandliabilitiesacquiredbythecombinationpartyaremeasuredatthebookvalueofthemergedpartyatthedateofconsolidation,includinggoodwillthatwasformedduringacquisitionbyendcontroller.Ifthedifferencebetweenthebookvalueofthenetassetsacquiredbythemergingpartyandthebookvalueofthemergedconsideration(orthetotalparvalueoftheissuedshares)paidbythemergingparty,andthecapitalreserve(sharecapitalpremium)shallbeadjusted;Ifthecapitalreserve(equitypremium)isinsufficienttooffset,theretainedearningsshallbeadjusted.
Thedirectexpensesincurredbythemergingpartyforthepurposeofbusinesscombinationshallbeincludedintheprofitsandlossesofthecurrentperiodwhentheyareincurred.
(2)Businesscombinationunderdifferentcontrol
Iftheenterprisesparticipatinginthemergerarenotultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthemerger,theenterprisemergerisnotunderthesamecontrol.Incaseofbusinesscombinationunderdifferentcontrol,thepartythatobtainscontrolofotherenterprisesparticipatinginthecombinationonthedateofpurchaseshallbethePurchaser,andtheotherenterprisesparticipatinginthecombinationshallbethePurchasee.PurchasedatemeansthedateonwhichthePurchaseractuallyacquirescontrolofthePurchasee.
Forbusinesscombinationunderdifferentcontrol,themergercostincludestheassets,liabilitiesandfairvalueofequitysecuritiesissuedbythePurchaserinordertoobtainthecontroloverthePurchaseeonthedateofpurchase,andtheintermediaryfeessuchasaudit,legalservice,appraisalandconsultationandothermanagementfeesfortheenterprisemergerareusedtorecordintotheprofitsandlossesofthecurrentperiodwhenincurred.ThetransactioncostsofequityordebtsecuritiesissuedbythePurchaserasamergerconsiderationareincludedintheinitialrecognitionamountoftheequity
ordebtsecurities.Contingentconsiderationinvolvedshallbeincludedintheconsolidationcostatitsfairvalueatthepurchasedate,andtheconsolidationgoodwillshallbeadjustedaccordinglyifneworfurtherevidenceoftheexistenceofcircumstancesatthepurchasedateappearswithin12monthsafterthepurchasedateandtheadjustmentorconsiderationisrequired.TheconsolidationcostincurredbythePurchaserandtheidentifiablenetassetsacquiredduringtheconsolidationaremeasuredatthefairvalueatthedateofpurchase.ThedifferencebetweenthemergercostsandthefairvaluesharesoftheidentifiablenetassetsofthePurchaseeatthepurchasedateobtainedinthemergerisrecognizedasgoodwill.IfthecombinedcostislessthanthefairvalueoftheidentifiablenetassetsofthePurchaseeinthemerger,first,thefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesofthePurchaseeandthemeasurementoftheconsolidationcostshallbere-checked.IftheconsolidationcostisstillsmallerthanthefairvalueshareoftheidentifiablenetassetsofthePurchasedobtainedintheconsolidationafterthere-check,thedifferenceshallberecordedintotheprofitsandlossesofthecurrentperiod.WhenthePurchaseracquiresthedeductibletemporarydifferenceofthePurchasee,ifitfailstorecognizethedeferredincometaxassetsonthedateofpurchasebecauseitdoesnotmeettherecognitionconditionsforthedeferredincometax,andwithin12monthsofthedateofpurchase,neworfurtherinformationisobtainedindicatingthattherelevantcircumstancesatthepurchasedatealreadyexistandtheeconomicbenefitsfromthetemporarydifferencedeductiblebythepurchaseronthepurchasedateareexpectedtoberealized,therelevantdeferredincometaxassetsshallberecognized,andthegoodwillshallbereduced.Ifthegoodwillisnotsufficientlyoffset,thedifferenceshallberecognizedasthecurrentprofitorloss;Inadditiontotheabovecircumstances,thedeferredincometaxassetsrelatedtotheenterprisemergerarerecognizedandincludedinthecurrentprofitsandlosses.
Throughmulti-transactionandstep-by-stepbusinesscombinationunderdifferentcontrol,accordingtotheCircularoftheMinistryofFinanceonPrintingandIssuingtheInterpretationofAccountingStandardsforBusinessEnterprisesNo.5(CK(2012)No.19)andArticle51oftheAccountingStandardsforBusinessEnterprisesNo.33-ConsolidatedFinancialStatementsonthejudgmentcriteriaof"packagedeal"(see5(2)ofNote3),itisdeterminedwhetherthemultipletransactionsbelongtothe"packagedeal".Inthecaseofa"packagedeal",theaccountingtreatmentshallbeperformedwithreferencetothedescriptionintheprecedingparagraphsofthissectionandNote3,13"Long-termEquityInvestments";Ifthetransactionisnota"packagedeal",theaccountingtreatmentshallbedistinguishedbetweentheindividualfinancialstatementsandtheconsolidatedfinancialstatements:
Intheindividualfinancialstatements,thesumofthebookvalueoftheequityinvestmentheldbythePurchaserpriortothepurchasedateandthecostofthenewinvestmentatthepurchasedateshallbetakenastheinitialinvestmentcostoftheinvestment;WheretheequityofthePurchasedheldbeforethedateofpurchaseinvolvesothercomprehensiveincome,theotherconsolidatedincomeassociatedwiththeinvestmentisaccountedforonthesamebasisastheassetsorliabilitiesdirectlydisposedofbythePurchaser(i.e.,exceptforthecorrespondingshareinthechangecausedbytheacquisitionofthenetliabilityornetassetsofthedefinedbenefitplanremeasuredinaccordancewiththeequitymethod,therestistransferredtothecurrentinvestmentincome).
Intheconsolidatedfinancialstatements,theequityofthePurchasedheldpriortothedateofpurchaseisremeasuredaccordingtothefairvalueoftheequityatthedateofpurchase,andthedifferencebetweenthefairvalueandthecarryingvalueisincludedintheinvestmentincomeofthecurrentperiod;WheretheequityofthePurchaseeheldbeforethedateofpurchaseinvolvesothercomprehensiveincome,otherconsolidatedincomerelatedtheretoshallbeaccountedforonthesamebasisasthedirectdisposaloftherelevantassetsorliabilitiesbythePurchaser(i.e.,exceptforthecorrespondingshareinthechangecausedbytheacquisitionofthenetliabilityornetassetofthedefinedbenefitplanremeasuredinaccordancewiththeequitymethod,therestisconvertedintotheinvestmentincomeofthecurrentperiodtowhichtheacquisitiondatebelongs).
5.PreparationMethodofConsolidatedFinancialStatement
(1)Principlesfordeterminingthescopeoftheconsolidatedfinancialstatement
Thescopeofconsolidationoftheconsolidatedfinancialstatementsisdeterminedonacontrolbasis.ControlmeansthattheCompanyhastheauthorityovertheInvestee,enjoysavariablereturnbyparticipatingintherelevantactivitiesoftheInvestee,andhastheabilitytouseitsauthorityovertheInvesteetoinfluencetheamountofsuchreturn.ThescopeofthemergerincludestheCompanyandallitssubsidiaries.SubsidiaryreferstothemainbodycontrolledbytheCompany.
TheCompanywillre-evaluatetheabovecontroldefinitionsoncetherelevantfactsandcircumstanceschange,whichresultsinthechangeoftherelevantelements.
(2)Preparationmethodofconsolidatedfinancialstatement
TheCompanybeginstoincorporatethenetassetsofthesubsidiaryandtheactualcontroloftheproductionandoperationdecisionsintothescopeofthemergerfromthedatewhenthesubsidiaryisacquired;Ceasetobeincludedinthescopeofthemergerasofthedateoflossofeffectivecontrol.Forthesubsidiariesdisposedof,theoperatingresultsandcashflowspriortothedateofdisposalhavebeenappropriatelyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement;Forsubsidiariesdisposedofinthecurrentperiod,theopeningamountoftheconsolidatedbalancesheetisnotadjusted.Theoperatingresultsandcashflowsofsubsidiariesincreasedbyconsolidationafterpurchasehavebeenproperlyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,andtheopeningandcomparativeamountsintheconsolidatedfinancialstatementshavenotbeenadjustedforsubsidiariesthatarenotunderthesamecontrol.Theoperatingresultsandcashflowsofthesubsidiariesincreasedbyconsolidationunderthesamecontrolfromthebeginningoftheconsolidationperiodtotheconsolidationdatehavebeenappropriatelyincludedintheconsolidatedprofitstatementandconsolidatedcashflowstatement,andthecomparativeamountoftheconsolidatedfinancialstatementshasbeenadjustedatthesametime.
Inthepreparationoftheconsolidatedfinancialstatements,iftheaccountingpoliciesoraccountingperiodsadoptedbythesubsidiariesareinconsistentwiththoseadoptedbytheCompany,necessaryadjustmentsshallbemadetothefinancialstatementsofthesubsidiariesinaccordancewiththeaccountingpoliciesandaccountingperiodsoftheCompany.Forsubsidiariesacquiredthroughbusinesscombinationunderdifferentcontrol,thefinancialstatementsshallbeadjustedonthebasisofthefairvalueofidentifiablenetassetsatthedateofpurchase.
Allsignificanttransactionbalances,transactionsandunrealizedprofitswithintheCompanyareoffsetatthetimeofpreparationoftheconsolidatedfinancialstatements.
Theshareholders'equityandtheportionofthenetprofitorlossofthesubsidiarythatisnotownedbytheCompanyforthecurrentperiodareseparatelypresentedasminorityshareholders'equityandminorityshareholders'profitorlossintheconsolidatedfinancialstatementsundershareholders'equityandnetprofit.Thesharesofminorityshareholders'equityinthenetprofitsandlossesofsubsidiariesforthecurrentperiodareshownas"minorityshareholders'profitsandlosses"underthenetprofititemintheconsolidatedincomestatement.Lossessharedbyminorityshareholdersinasubsidiaryexceedtheminorityshareholders'shareintheshareholders'equityofthesubsidiaryatthebeginningoftheperiod,andstilldecreasebyanumberofshareholders'equity.
Whenthecontroloftheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theresidualequityshallberevaluedaccordingtoitsfairvalueatthedateoflossofcontrol.Thesumofconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequityminusthedifferencebetweenthesharesofthenetassetsoftheoriginalsubsidiarythatshallbecontinuouslycalculatedfromthepurchasedateaccordingtotheoriginalshareholdingproportionshallbeincludedintheinvestmentincomeofthecurrentperiodoflossofcontrol.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiary,intheeventoflossofcontrol,theaccountingtreatmentisperformedonthesamebasisasthedirectdisposaloftherelevantassetsorliabilitiesbythePurchased(i.e.convertedtocurrentinvestmentincome,exceptforchangesresultingfromthere-measurementofthenetliabilitiesornetassetsoftheDefinedBenefitPlanintheoriginalsubsidiary).Thereafter,theresidualequityshallbesubsequentlymeasuredinaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.2-Long-termEquityInvestmentorAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,asdetailedinNoteⅢ,13-Long-termEquityInvestmentorNoteⅢ,9-FinancialInstruments.
IftheCompanydisposesoftheequityinvestmentinsubsidiariesstepbystepuntilitlosescontrolthroughmultipletransactions.Itisnecessarytodistinguishwhetherthetransactionsthatdisposeoftheequityinvestmentinsubsidiariesuntilitlosescontrolbelongtoapackagedealornot.Theterms,conditionsandeconomicimpactofthetransactionsforthedisposalofequityinvestmentsinsubsidiariesareinaccordancewithoneormoreofthefollowingcircumstancesandgenerallyindicatethatmultipletransactionsshouldbeaccountedforasapackagedeal:①Thesetransactionswereenteredintosimultaneouslyortakingintoaccounteachother'sinfluence;②Onlywhenthesetransactionsaretakentogethercanacompletebusinessresultbeachieved;③Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;④Itisnoteconomicaltoconsideratransactionalone,butitiseconomicaltoconsideritinconjunctionwithothertransactions.Fortransactionsthatarenotpartofthepackagedeal,eachtransactionshallbeaccountedforinaccordancewiththeprinciplesapplicabletothe"partialdisposaloflong-termequityinvestmentsinsubsidiarieswithoutlossofcontrol"(asdetailedin13ofNoteⅢ)andthe"lossofcontroloverexistingsubsidiariesasaresultofthedisposalofpartoftheequityinvestmentsorotherreasons"(asdetailedintheprecedingparagraph),asappropriate.Ifthetransactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesuntilthelossofcontrolbelongtoapackagedeal,the
transactionsshallbeaccountedforasatransactioninvolvingthedisposalofsubsidiariesandthelossofcontrol;However,thedifferencebetweeneachdisposalpriceandtheshareofthesubsidiary'snetassetscorrespondingtothedisposalinvestmentpriortothelossofcontrolisrecognizedintheconsolidatedfinancialstatementsasotherconsolidatedgainsandtransferredtotheprofitorlossforthecurrentperiodoflossofcontrolintheeventoflossofcontrol.
6.ClassificationofJointVentureArrangementsandAccountingTreatmentofJointOperationAjointventurearrangementisanarrangementunderthejointcontroloftwoormoreparticipants.TheCompanydividesthejointventurearrangementintojointventuresandjointventuresinaccordancewiththerightsandobligationsitenjoysinthejointventurearrangement.JointoperationreferstothejointventurearrangementinwhichtheCompanyenjoystheassetsrelatedtothearrangementandassumestheliabilitiesrelatedtothearrangement.AjointventurereferstoajointventurearrangementinwhichtheCompanyonlyhasrightsoverthenetassetsofthearrangement.
TheCompany'sinvestmentinthejointventureisaccountedforusingtheequitymethod,andshallbetreatedinaccordancewiththeaccountingpolicydescribedinNoteⅢ,13"Long-termEquityInvestmentAccountedbytheEquityMethod".
TheCompany,asajointventureparty,recognizestheassetsandliabilitiesheldandassumedbytheCompanyseparately,andrecognizestheassetsandliabilitiesjointlyheldandassumedbytheCompanyaccordingtothesharesoftheCompany;recognizestherevenuegeneratedfromthesaleoftheshareofjointoperatingoutputenjoyedbytheCompany;recognizesrevenuegeneratedfromthesaleofoutputfromjointoperationsonthebasisoftheCompany'sshare;confirmstheexpensesincurredbytheCompanyindividuallyandtheexpensesincurredbythejointoperationaccordingtothesharesoftheCompany.
WhentheCompanyinvestsorsellsassetsasajointventure(suchassetsdonotconstitutebusiness,thesamebelow),orpurchasesassetsfromthejointventure,theCompanyrecognizesonlytheportionoftheprofitsandlossesattributabletotheotherparticipantsinthejointventurethatarisesfromthetransactionpriortothesaleofsuchassetstoathirdparty.WheresuchassetsareimpairedinaccordancewiththeprovisionsofAccountingStandardsforBusinessEnterprisesNo.8-ImpairmentofAssets,theCompanyshallfullyrecognizesuchlossesinthecasewheretheassetsarecastorsoldbytheCompanytojointoperations;FortheassetspurchasedbytheCompanyfromthejointoperation,theCompanyrecognizesthelossesaccordingtothesharesitassumes.
7.DeterminingStandardsforCashandCashEquivalent
CashandcashequivalentsoftheCompanyincludecashonhand,depositsthatcanbeusedforpaymentatanytime,andinvestmentsheldbytheCompanywithashortterm(usuallymaturingwithinthreemonthsfromthedateofpurchase),highliquidity,easyconversionintocashofaknownamount,andlittleriskofvaluechange.
8.ForeignCurrencyBusinessandTranslationofForeignCurrencyStatements
(1)Translationmethodforforeigncurrencytransaction
Atthetimeofinitialconfirmation,theforeigncurrencytransactionsoccurringintheCompanyshallbeconvertedinto
thebookkeepingfunctionalcurrencyamountatthespotexchangerateonthetradingday,buttheforeigncurrencyexchangebusinessortransactionsinvolvingforeigncurrencyexchangeoccurringintheCompanyshallbeconvertedintothebookkeepingfunctionalcurrencyamountattheactualexchangerate.
(2)Translationmethodforforeigncurrencymonetaryitemsandforeigncurrencynon-monetaryitemOnthebalancesheetdate,theforeigncurrencymonetaryitemsareconvertedatthespotexchangerateonthebalancesheetdate,andtheexchangedifferencearisingtherefromshallbe:①Theexchangedifferencearisingfromthespecialforeigncurrencyborrowingsrelatedtotheacquisitionandconstructionofassetseligibleforcapitalizationshallbehandledinaccordancewiththeprincipleofcapitalizationofborrowingcosts;②Theexchangedifferenceofthehedginginstrumentsusedforeffectivehedgingofthenetinvestmentinoverseasoperations(thedifferenceisincludedinothercomprehensiveincome,andisnotrecognizedascurrentprofitorlossuntilthenetinvestmentisdisposedof);③Exceptfortheamortizedcost,theexchangedifferencesarisingfromthechangesinthebookbalanceoftheavailable-for-salemonetaryitemsinforeigncurrenciesshallbeincludedintheothercomprehensiveincome,andshallbeincludedintheprofitsandlossesofthecurrentperiod.Wherethepreparationoftheconsolidatedfinancialstatementsinvolvesoverseasoperations,ifthereareforeigncurrencymonetaryitemsconstitutingnetinvestmentinoverseasoperations,theexchangedifferencesarisingfromexchangeratechangesshallbeincludedinothercomprehensiveincome;Whendisposingofoverseasoperations,theprofitsandlossesshallbetransferredtothecurrentdisposalperiod.
Non-monetaryitemsinforeigncurrenciesmeasuredathistoricalcostshallstillbemeasuredatthebookkeepingamountinfunctionalcurrencytranslatedatthespotexchangerateonthetransactiondate.Fornon-monetaryitemsinforeigncurrenciesmeasuredatfairvalue,thespotexchangerateatthedateoffairvaluedeterminationshallbeadoptedforconversion.Thedifferencebetweentheconvertedamountinfunctionalcurrencyandtheamountinoriginalfunctionalcurrencyshallbetreatedasthechangeinfairvalue(includingthechangeinexchangerate),andshallberecordedintotheprofitsandlossesofthecurrentperiodorrecognizedasothercomprehensiveincome.
(3)Translationmethodforfinancialstatementsinforeigncurrencies
Wherethepreparationoftheconsolidatedfinancialstatementsinvolvesoverseasoperations,ifthereareforeigncurrencymonetaryitemsconstitutingnetinvestmentinoverseasoperations,theexchangedifferencesarisingfromexchangeratechangesshallbeas"foreigncurrencyreportconversiondifference"andbeconfirmedasothercomprehensiveincome;Whendisposingofoverseasoperations,theprofitsandlossesshallbetransferredtothecurrentdisposalperiod.
TheforeigncurrencyfinancialstatementsofoverseasoperationsshallbeconvertedintoRMBstatementsinthefollowingways:theassetsandliabilitiesinthebalancesheetshallbeconvertedatthespotexchangerateonthebalancesheetdate;Exceptfor"undistributedprofits",otheritemsofshareholders'equityshallbeconvertedatthespotexchangerateatthetimeofoccurrence.Theincomeandexpenseitemsintheprofitstatementshallbeconvertedattheaverageexchangerateofthecurrentperiodonthedateoftransaction.Theundistributedprofitatthebeginningoftheperiodshallbetheundistributedprofitattheendoftheperiodconvertedfromthepreviousyear;Theundistributedprofitsattheendoftheyear
shallbecalculatedandlistedaccordingtotheconvertedprofitsdistributionitems;Thedifferencebetweentheconvertedassetitemsandthetotalamountoftheliabilityitemsandshareholders'equityitemsshallberecognizedasothercomprehensiveincomeasthetranslationdifferenceintheforeigncurrencystatements.Incaseofdisposalofoverseasoperationsandlossofcontrol,thebalanceintranslationoftheforeigncurrencystatementsrelatedtotheoverseasoperationsasshownbelowintheshareholders'equityitemsinthebalancesheetshallbetransferredtotheprofitsandlossesofthedisposalperiodinwholeorinproportiontothedisposaloftheoverseasoperations.Cashflowsinforeigncurrenciesandcashflowsofoverseassubsidiariesshallbeconvertedattheaverageexchangerateofthecurrentperiodonthedateofoccurrenceofthecashflows.Theeffectofexchangeratechangesoncashshallbepresentedseparatelyinthestatementofcashflowsasanreconcilingitem.
Openingamountsandprior-periodactualamountsshallbeshownonthebasisofamountstranslatedfromtheprior-periodfinancialstatements.Whendisposingofalltheowner'sequityoftheCompany'soverseasoperationsorlosingthecontroloveroverseasoperationsduetothedisposalofpartoftheequityinvestmentorforotherreasons,ifthefollowingitemsofshareholders'equityinthebalancesheetareshownbelow,thebalanceintranslationoftheforeigncurrencystatementattributabletotheowner'sequityoftheparentcompanyrelatedtotheoverseasoperationshallbetransferredtotheprofitsandlossesofthecurrentdisposalperiod.
Intheeventthattheproportionofoverseasbusinessinterestsisreducedduetothedisposalofpartoftheequityinvestmentorforotherreasons,butthecontroloveroverseasbusinessoperationsisnotlost,thebalanceinthetranslationoftheforeigncurrencystatementsrelatedtothedisposalofpartofoverseasbusinessoperationsshallbeattributedtominorityshareholders'interestsandshallnotbetransferredtotheprofitsandlossesofthecurrentperiod.Whendisposingofpartoftheequityofanoverseasoperationasanassociatedenterpriseorajointventure,thebalanceofthetranslationoftheforeigncurrencystatementsrelatedtotheoverseasoperationshallbetransferredintotheprofitsandlossesofthecurrentdisposalperiodintheproportionoftheoverseasoperationdisposedof.
9.Financialinstruments
AfinancialassetorfinancialliabilityisrecognizedwhentheCompanybecomesapartytoafinancialinstrumentcontract.
(1)Classification,confirmationandmeasurementoffinancialassets
Accordingtothebusinessmodeofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsinto:Financialassetsmeasuredatamortizedcost.Financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.Financialassetsthataremeasuredatfairvalueandwhosemovementsareincludedinthecurrentprofitsandlosses.
Financialassetsaremeasuredatfairvalueatinitialrecognition.Forfinancialassetsmeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses,relevanttransactioncostsaredirectlyincludedincurrentprofitsandlosses.Forothertypesoffinancialassets,relevanttransactioncostsareincludedintheinitialrecognitionamount.Accountsreceivableornotesreceivablearisingfromthesaleofproductsortheprovisionoflaborservicesthatdonotcontainortake
intoaccountsignificantfinancingcomponentsshallbeinitiallyrecognizedbytheCompanyinaccordancewiththeamountofconsiderationthattheCompanyisexpectedtobeentitledtoreceive.
FinancialassetsmeasuredatamortizedcostTheCompany'sbusinessmodelofmanagingfinancialassetsmeasuredinamortizedcostisaimedatcollectingcontractualcashflow,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwiththebasiclendingarrangements,thatis,thecashflowgeneratedonaspecificdateisonlythepaymentofprincipalandinterestbasedontheunpaidprincipalamount.Forsuchfinancialassets,theCompanyadoptstheeffectiveinterestratemethodandcarriesoutsubsequentmeasurementaccordingtoamortizedcost.Theprofitsorlossesarisingfromamortizationorimpairmentareincludedintothecurrentprofitsandlosses.
FinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeTheCompany'sbusinessmodelformanagingsuchfinancialassetsistocollectandsellcontractualcashflow,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwiththebasiclendingarrangements.TheCompanymeasuresthesefinancialassetsatfairvalueandtheirchangesareincludedinothercomprehensiveincome,butimpairmentlossorgain,exchangegainorlossandinterestincomecalculatedaccordingtotheeffectiveinterestratemethodareincludedintothecurrentprofitandloss.
Inaddition,theCompanydesignatessomenontradableequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.TheCompanyshallrecordtherelevantdividendincomeofsuchfinancialassetsintothecurrentprofitsandlosses,andthechangeoffairvalueintoothercomprehensiveincome.Whenthefinancialassetisderecognized,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomewillbetransferredfromothercomprehensiveincometoretainedincomeandwillnotbeincludedincurrentprofitsandlosses.3FairvaluethroughProfitandLossFinancialassets
TheCompanyclassifiestheabovefinancialassetsmeasuredatamortizedcostandfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeintofinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.Inaddition,duringinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,theCompanydesignatedpartoffinancialassetsasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss.Forsuchfinancialassets,theCompanyadoptsfairvalueforsubsequentmeasurement,andthechangesinfairvalueareincludedintothecurrentprofitandloss.
(2)Classification,recognitionandmeasurementoffinancialliabilities
Financialliabilitiesuponinitialrecognitionareclassifiedasfinancialliabilitieswhicharemeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlossesandotherfinancialliabilities.Forthefinancialliabilitiesmeasuredatfairvaluewiththechangesincludedintothecurrentprofitsandlosses,therelevanttransactioncostsaredirectlyincludedintothecurrentprofitsandlosses,andtherelevanttransactioncostsofotherfinancialliabilitiesareincludedintheinitialrecognitionamount.
FairvaluethroughProfitandLossFinancialliabilities
Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,whichincludetransactionalfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlossesatinitialrecognition.Tradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)aresubsequentlymeasuredaccordingtotheirfairvalues.Exceptforthoserelatedtohedgeaccounting,changesinfairvaluesareincludedincurrentprofitsandlosses.
Financialliabilitiesdesignatedtobemeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses.ChangesinthefairvalueofthisliabilitycausedbychangesintheCompany'sowncreditriskareincludedinothercomprehensiveincome.Whentheliabilityisderecognized,theaccumulatedchangeinfairvaluecausedbychangesinitsowncreditriskincludedinothercomprehensiveincomeistransferredtoretainedearnings.Changesinfairvalueareaccountedintocurrentprofitsandlosses.Iftheabove-mentionedtreatmentoftheimpactofchangesinthecreditriskofthesefinancialliabilitieswillcauseorexpandaccountingmismatchinprofitsandlosses,theCompanywillincludeallprofitsorlossesofthefinancialliabilities(includingtheimpactamountofchangesinthecreditriskoftheenterpriseitself)intothecurrentprofitsandlosses.
Otherfinancialliabilities
Exceptforfinancialliabilitiesandfinancialguaranteecontractsformedbythetransferoffinancialassetsthatdonotmeettheconditionsforterminationofrecognitionorcontinuetobeinvolvedinthetransferredfinancialassets,otherfinancialliabilitiesareclassifiedasfinancialliabilitiesmeasuredatamortizedcostandsubsequentlymeasuredatamortizedcost.Gainsorlossesarisingfromterminationofrecognitionoramortizationareincludedincurrentprofitsandlosses.
(3)BasisofConfirmationandCalculationoffinancialinstruments
Financialassetsshallbederecognizediftheymeetoneofthefollowingconditions:①Theterminationofthecontractualrighttoreceivecashflowfromthefinancialasset.②Thefinancialassethasbeentransferred,andalmostallrisksandrewardsrelatedtotheownershipofthefinancialassethavebeentransferredtothetransferee.③Thefinancialassethasbeentransferred.Althoughtheenterprisehasneithertransferrednorretainedalmostallrisksandrewardsintheownershipofthefinancialasset,ithasgivenupitscontroloverthefinancialasset.
Iftheenterpriseneithertransfersnorretainsalmostalltherisksandrewardsoftheownershipofthefinancialassets,anddoesnotgiveupthecontroloverthefinancialassets,therelevantfinancialassetsshallberecognizedaccordingtotheextentofcontinuousinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.Thedegreeofcontinuousinvolvementinthetransferredfinancialassetsreferstotherisklevelfacedbytheenterpriseduetothechangeinthevalueofthefinancialassets.
Iftheoveralltransferoffinancialassetsmeetstheconditionsforterminationofrecognition,thedifferencebetweenthebookvalueofthetransferredfinancialassetsandthesumoftheconsiderationreceivedduetothetransferandtheaccumulatedamountofchangesinfairvalueoriginallyincludedinothercomprehensiveincomeshallbeincludedintothecurrentprofitsandlosses.
Ifthepartialtransferoffinancialassetsmeetstheconditionsforterminationofrecognition,thebookvalueofthetransferredfinancialassetsshallbeapportionedaccordingtoitsrelativefairvaluebetweenthederecognizedpartandthenonderecognizedpart,andthedifferencebetweenthesumoftheconsiderationreceivedduetothetransferandtheaccumulatedchangeinfairvalueoriginallyincludedinothercomprehensiveincomethatshallbeapportionedtothederecognizedpartandtheallocatedaforesaidbookamountshallbeincludedintothecurrentprofitsandlosses.ForfinancialassetssoldbytheCompanywithrecourse,orforendorsementandtransferofheldfinancialassets,itisnecessarytodeterminewhetheralmostallrisksandrewardsintheownershipofthefinancialassetshavebeentransferred.Ifalmostallrisksandrewardsintheownershipofthefinancialassethavebeentransferredtothetransferee,therecognitionofthefinancialassetshallbeterminated.Ifalmostallrisksandrewardsontheownershipofafinancialassetareretained,therecognitionofthefinancialassetshallnotbeterminated.Ifalmostallrisksandrewardsrelatedtotheownershipoffinancialassetshavenotbeentransferredorretained,itshallcontinuetojudgewhethertheenterpriseretainscontrolovertheassetsandcarryoutaccountingtreatmentaccordingtotheprinciplesmentionedintheprecedingparagraphs.
(4)Terminationofrecognitionoffinancialliabilities
Ifthecurrentobligationofthefinancialliability(orpartthereof)hasbeenrelieved,theCompanyterminatestherecognitionofthefinancialliability(orpartthereof).TheCompany(theborrower)andthelendersignanagreementtoreplacetheoriginalfinancialliabilitiesbyassumingnewfinancialliabilities.Ifthecontracttermsofthenewfinancialliabilitiesandtheoriginalfinancialliabilitiesaresubstantiallydifferent,theoriginalfinancialliabilitiesshallbederecognizedandanewfinancialliabilityshallberecognizedatthesametime.IftheCompanymakesanysubstantialmodificationtothecontracttermsoftheoriginalfinancialliability(orpartthereof),theoriginalfinancialliabilityshallbederecognizedandanewfinancialliabilityshallberecognizedinaccordancewiththemodifiedterms.
Iffinancialliabilities(orpartthereof)arederecognized,theCompanyshallincludethedifferencebetweenitsbookvalueandtheconsiderationpaid(includingtransferrednon-cashassetsorliabilitiesassumed)intothecurrentprofitsandlosses.
(5)Offsetoffinancialassetsandfinancialliabilities
WhentheCompanyhasthelegalrighttooffsettherecognizedamountoffinancialassetsandfinancialliabilities,andsuchlegalrightiscurrentlyenforceable,andtheCompanyplanstosettlethefinancialassetsonanetbasisorrealizethefinancialassetsandsettlethefinancialliabilitiesatthesametime,thefinancialassetsandfinancialliabilitiesarelistedinthebalancesheetatanetamountaftermutualoffset.Inaddition,financialassetsandfinancialliabilitiesshallbelistedseparatelyinthebalancesheetandshallnotbeoffsetagainsteachother.
(6)Thefairvaluedeterminationmethodoffinancialassetsandfinancialliabilities
Fairvaluereferstothepricethatmarketparticipantscanreceivefromsellinganassetorpaytotransferaliabilityinanorderlytransactiononthemeasurementdate.Wherethereisanactivemarketforfinancialinstruments,theCompanyadoptsquotationsintheactivemarkettodeterminetheirfairvalues.Quotedpriceinactivemarketreferstothepriceeasilyobtainedfromexchanges,brokers,industryassociations,pricingserviceagencies,etc.onaregularbasis,andrepresentsthe
priceofmarkettransactionsactuallyoccurredinfairtrading.Ifthereisnoactivemarketforfinancialinstruments,theCompanyusesevaluationtechniquestodeterminetheirfairvalues.Evaluationtechniquesincludereferencetopricesusedinrecentmarkettransactionsbypartiesfamiliarwiththesituationandwillingtotrade,referencetocurrentfairvaluesofotherfinancialinstrumentsthataresubstantiallythesame,discountingcashflowtechnique,optionpricingmodel,etc.Invaluation,theCompanyadoptsvaluationtechniquesthatareapplicableundercurrentcircumstancesandaresupportedbysufficientavailabledataandotherinformation,selectsinputvaluesthatareconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsintransactionsrelatedtoassetsorliabilities,andgivesprioritytotheuseofrelevantobservableinputvaluesasmuchaspossible.Iftherelevantobservableinputvaluecannotbeobtainedoritisnotimpracticabletoobtainit,thenon-inputvalueshallbeused.
(7)EquityinstrumentsEquityinstrumentsrefertocontractsthatcanproveownershipoftheCompany'sresidualequityinassetsafterdeductingallliabilities.Theissuance(includingrefinancing),repurchase,saleorcancellationofequityinstrumentsbytheCompanyaretreatedaschangesinequity,andtransactioncostsrelatedtoequitytransactionsaredeductedfromequity.TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.Dividends(including"interest"generatedbyinstrumentsclassifiedasequityinstruments)distributedbytheCompany'sequityinstrumentsduringtheirexistenceshallbetreatedasprofitdistribution.
10.ImpairmentoffinancialassetsThefinancialassetsoftheCompanythatneedtoconfirmtheimpairmentlossarefinancialassetsmeasuredatamortizedcostanddebtinstrumentinvestmentmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,mainlyincludingnotesreceivable,accountsreceivable,otherreceivables,debtinvestment,otherdebtinvestment,long-termreceivables,etc.Inaddition,forsomefinancialguaranteecontracts,impairmentreservesandcreditimpairmentlossesarealsoaccruedinaccordancewiththeaccountingpoliciesdescribedinthispart.
(1)RecognitionmethodofimpairmentprovisionOnthebasisofexpectedcreditlosses,theCompanysetsasideimpairmentreservesandrecognizescreditimpairmentlossesfortheaboveitemsaccordingtotheapplicableexpectedcreditlossmeasurementmethod(generalmethodorsimplifiedmethod).
CreditlossreferstothedifferencebetweenallcontractualcashflowsreceivableaccordingtothecontractandallcashflowsexpectedtobecollectedbytheCompanydiscountedaccordingtotheoriginalactualinterestrate,i.e.thepresentvalueofallcashshortages.Amongthem,forthefinancialassetsthathavebeenpurchasedorincurredcreditimpairment,theCompanydiscountsthemaccordingtotheactualinterestrateadjustedbycredit.
ThegeneralmethodofmeasuringexpectedcreditlossreferstotheCompany'sassessmentofwhetherthecreditriskoffinancialassetshasincreasedsignificantlysincetheinitialrecognitiononeachbalancesheetdate.Ifthecreditriskhasincreasedsignificantlysincetheinitialrecognition,theCompanywillmeasurethelossreservebyanamountequivalentto
theexpectedcreditlossduringtheentireperiod.Ifthecreditriskhasnotincreasedsignificantlysincetheinitialrecognition,theCompanywillmeasurethelossreserveaccordingtotheamountequivalenttotheexpectedcreditlossinthenext12months.Inassessingtheexpectedcreditloss,theCompanytakesintoaccountallreasonableandevidence-basedinformation,includingforward-lookinginformation.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theCompanymeasuresthelossreservebasedontheexpectedcreditlossamountwithinthenext12monthsortheentiredurationaccordingtowhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.
(2)CriteriaforjudgingwhethercreditriskhasincreasedsignificantlysinceinitialrecognitionIfthedefaultprobabilityofacertainfinancialassetintheexpecteddurationdeterminedatthebalancesheetdateissignificantlyhigherthanthedefaultprobabilityintheexpecteddurationdeterminedatthetimeofinitialrecognition,itindicatesthatthecreditriskofthefinancialassetissignificantlyincreased.Exceptforspecialcircumstances,theCompanyusesthechangeofdefaultriskinthenext12monthsasareasonableestimateofthechangeofdefaultriskintheentiredurationtodeterminewhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition.
Generally,iftheoverdueperiodismorethan90days,theCompanywillconsiderthatthecreditriskofthefinancialinstrumenthasincreasedsignificantly,unlessthereisconclusiveevidencethatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.
TheCompanywillconsiderthefollowingfactorswhenevaluatingwhetherthecreditriskhasincreasedsignificantly
1）Whetherthereisanysignificantchangeintheactualorexpectedoperatingresultsofthedebtor;
）Whetherthereisanysignificantadversechangeintheregulatory,economicortechnologicalenvironmentofthedebtor;
3）Whetherthereisanysignificantchangeinthevalueofthecollateralorthequalityoftheguaranteeorcreditenhancementprovidedbythethirdparty,whichareexpectedtoreducetheeconomicmotivationofthedebtor'srepaymentaccordingtothetimelimitstipulatedinthecontractoraffecttheprobabilityofdefault;
）Whetherthereisanysignificantchangeintheexpectedperformanceandrepaymentbehaviorofthedebtor;
）WhetherthereisanysignificantchangeintheCompany'screditmanagementmethodsforfinancialinstruments,etc.
Onthebalancesheetdate,iftheCompanyjudgesthatthefinancialinstrumenthasonlylowcreditrisk,theCompanyassumesthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Ifthedefaultriskofafinancialinstrumentislow,theborrower'sabilitytoperformitscontractualcashflowobligationsinashortperiodoftimeisstrong,andevenifthereareadversechangesintheeconomicsituationandoperatingenvironmentforalongperiodoftime,itmaynotnecessarilyreducetheborrower'sabilitytoperformitscontractualcashobligations,thenthefinancialinstrumentisconsideredtohavelowcreditrisk.
(3)Judgmentcriteriaforfinancialassetswithcreditimpairment:
Whenoneormoreeventshaveanadverseimpactontheexpectedfuturecashflowofafinancialasset,thefinancialassetbecomesafinancialassetwithcreditimpairment.Theevidenceofcreditimpairmentoffinancialassetsincludesthefollowingobservableinformation:
）Theissuerordebtorhasmajorfinancialdifficulties;
2）Thedebtorviolatesthecontract,suchasdefaultoroverduepaymentofinterestorprincipal,etc.;
）Thecreditorgivesconcessionsthatthedebtorwillnotmakeunderanyothercircumstancesduetoeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties;
）Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;5）Theactivemarketofthefinancialassetsdisappearsduetothefinancialdifficultiesoftheissuerorthedebtor;
）Purchaseorgenerateafinancialassetatasubstantialdiscount,whichreflectsthefactthatcreditlosseshaveoccurred.Creditimpairmentoffinancialassetsmaybecausedbythecombinedactionofmultipleevents,butmaynotbecausedbyseparatelyidentifiableevents.
(4)PortfolioapproachtoevaluateexpectedcreditriskbasedonportfolioTheCompanyevaluatescreditrisksforfinancialassetswithsignificantlydifferentcreditrisks,suchas:Accountsreceivablewithrelatedparties.Receivablesindisputewiththeotherpartyorinvolvinglitigationorarbitration.Receivableswithobvioussignsthatthedebtorislikelytobeunabletoperformtherepaymentobligation.Inadditiontothefinancialassetswithindividualcreditriskassessment,theCompanydividesthefinancialassetsintodifferentgroupsbasedonthecommonriskcharacteristics.ThecommoncreditriskcharacteristicsadoptedbytheCompanyinclude:Creditriskshallbeassessedonthebasisoftheagingportfolio,thereceivablesportfoliobetweenthefinalcontrollingpartyanditssubordinateunits,thepublicmaintenancefundandhousesellingfundportfoliodepositedinthehousingprovidentfundmanagementcenter,thedeposit/marginportfolio,andthepettycashledgerportfolioformedbytheemployeeloanoftheunit.
(5)AccountingtreatmentmethodforimpairmentoffinancialassetsAttheendoftheperiod,theCompanycalculatestheestimatedcreditlossesofvariousfinancialassets.Iftheestimatedcreditlossesaregreaterthanthebookamountofitscurrentimpairmentreserve,thedifferenceisrecognizedasimpairmentloss.Ifitislessthanthecarryingamountofthecurrentimpairmentreserve,thedifferenceisrecognizedasimpairmentgain.
(6)Methodsfordeterminingthecreditlossofvariousfinancialassets
①NotesreceivableTheCompanymeasuresthelossreserveforbillsreceivableaccordingtotheexpectedcreditlossamountequivalenttotheentireduration.Basedonthecreditriskcharacteristicsofbillsreceivable,theyaredividedintodifferentportfolios:
Item
| Item | Basisfordeterminingportfolio |
| Bankacceptancebills | Theacceptorisabankwithlesscreditrisk |
| Commercialacceptancebill | Accordingtotheacceptor'screditriskclassification,itshouldbethesameasthe"receivable"portfolioclassification. |
3Accountsreceivableandotherreceivables
Forreceivablesthatdonotcontainsignificantfinancingcomponents,theCompanymeasuresthelossreserveaccordingtotheexpectedcreditlossamountequivalenttotheentireduration.
Forreceivablesthatcontainsignificantfinancingcomponents,theCompanymeasuresthelossreservebasedonwhetherthecreditriskhasincreasedsignificantlysincetheinitialrecognition,usingtheamountofexpectedcreditlosswithinthenext12monthsortheentireduration.Accordingtowhetherthecreditriskofotherreceivableshasincreasedsignificantlysincetheinitialrecognition,theCompanymeasuresimpairmentlosswithanamountequivalenttotheexpectedcreditlosswithinthenext12monthsortheentireduration.
Inadditiontotheaccountsreceivableandotherreceivablesthatindividuallyassesscreditrisk,theyaredividedintodifferentportfoliosbasedontheircreditriskcharacteristics:
Item
| Item | Basisfordeterminingportfolio |
| Portfolio1 | Agingportfolio |
| Portfolio2 | Aportfolioofreceivablesbetweentheultimatecontrolleranditssubordinateunits |
| Portfolio3 | Theportfolioofpublicmaintenancefundsandhousesalesfundsdepositedinthehousingprovidentfundmanagementcenter |
| Portfolio4 | Deposit/marginportfolio |
| Portfolio5 | TheportfolioofreservefundledgerformedbytheCompany'sstaffloan |
Theaccrualmethodofbaddebtreservesfordifferentportfolios:
| Item | Accrualmethod |
| Agingportfolio | Accordingtotheaccrualproportioncorrespondingtotheagingperiod |
| Portfolioofreceivablesbetweentheultimatecontrollingpartyanditssubordinateunits | Referringtothehistoricalcreditlossexperience,combinedwiththecurrentsituationandtheforecastoffutureeconomicconditions,theexpectedcreditlossiscalculatedthr-oughthedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsortheentireduration,andtheexpectedcreditlossrateoftheportfolioiszero. |
| TheportfolioofpublicmaintenancefundsandhousesalesfundsdepositedintotheMPFManagementCenter | |
| Deposit/marginportfolio | |
| TheportfolioofreservefundledgerformedbytheCompany'sstaffloan. |
a.Inportfolio,theportfoliomethodofwithdrawingbaddebtreservesbyaginganalysis
| Aging | Expectedlossrateofnotesreceivable(%) | Expectedlossrateofaccountsreceivable(%) | Expectedlossrateofotherreceivables(%) |
| Within1year(including1year,the |
Aging
| Aging | Expectedlossrateofnotesreceivable(%) | Expectedlossrateofaccountsreceivable(%) | Expectedlossrateofotherreceivables(%) |
| samebelow) | |||
| Amongthem:Withinthecreditperiod(within3months) | 0 | 0 | 0 |
| Creditperiod~1year | 2 | 2 | 2 |
| 1-2years | 5 | 5 | 5 |
| 2-3years | 20 | 20 | 20 |
| 3-4years | 50 | 50 | 50 |
| 4-5years | 80 | 80 | 80 |
| Morethan5years | 100 | 100 | 100 |
b.Intheportfolio,thedescriptionoftheaccrualmethodforaccrualofbaddebtreservesbyothermethodsisgiven.
| Aging | Expectedlossrateofnotesreceivable(%) | Expectedlossrateofaccountsreceivable(%) | Expectedlossrateofotherreceivables(%) |
| Accountsreceivablebetweenthefinalcontrollingpartyanditssubordinateu | 0 | 0 | 0 |
| PublicmaintenancefundandhousesalefunddepositedintoMPFManagementCenter | 0 | 0 | 0 |
| Deposit/margin | 0 | 0 | 0 |
| ThereservefundledgerformedbytheCompany'sstaffloan. | 0 | 0 | 0 |
11.Inventory
(1)ClassificationofinventoryInventoriesmainlyincluderawmaterials,turnovermaterials,developedproducts,intransitmaterialsinventorygoods,reservetankerstoragecommissionedprocessing,andmanufacturingconsignment,etc..
(2)ValuationmethodforobtainingandissuinginventoryInventoriesarevaluedatactualcostwhentheyareacquired.Inventorycostsincludepurchasecosts,processingcostsandothercosts.Theyarevaluedwithweightedaveragemethodwhentheyareusedandissued.
(3)ConfirmationofnetrealizablevalueofinventoriesandmethodofaccrualoffallingpricereserveNetRealizableValuereferstotheamountofestimatedsellingpriceofinventoriesminustheestimatedcosttill
completion,estimatedexpensesforsellingactivityandrelatedtaxesandfeesindailyactivities.Whendeterminingthenetrealizablevalueofinventories,solidevidenceobtainedshallbethebasis,andthepurposeofholdingtheinventoriesandtheimpactofeventsafterthebalancesheetdateshallbeconsidered.
Onthebalancesheetdate,inventoriesshallbemeasuredatlowerofcostandnetrealizablevalue.Whenthenetrealizablevalueislowerthanthecost,theprovisionforinventorydevaluationshallbeaccrued.Theprovisionforinventorydevaluationshallbeaccruedbasedonthedifferencebetweenthecostofasingleinventoryitemanditsnetrealizablevalue.Theprovisionforinventorydevaluationofalargenumberofinventorieswithlowunitpricesshallbebasedonthetypeofinventory;forinventoriesrelatedtotheproductrangeproducedandsoldinsameregion,havingthesameorsimilarenduseorpurpose,anddifficulttobeseparatedfromotheritemsformeasurement,theirprovisionforinventorydevaluationcanbecombinedandaccrued.
Aftertheprovisionforinventorydevaluationisaccrued,ifthefactorscausethepreviouswritten-downinventoryvaluehavedisappeared,andthesituationresultsinthefactthatthenetrealizablevalueoftheinventorieshigherthanthebookvalue,theamountoftheprovisionforinventorydevaluationthathasbeenaccruedshallbereversedandincludedinthecurrentperiodprofitorloss.
(4)TheCompanyadoptsperpetualinventorysystemasitsinventorysystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagingmaterials
Low-valueconsumablesareamortizedbyone-offamortizationmethodwhentheyarereceived;packagingmaterialsareamortizedbyone-offamortizationmethodwhentheyarereceived.
12.Held-for-saleassetsanddisposalgroup
Ifthebookvalueofanon-currentassetorto-be-disposedportfolioisrecoveredbytheCompanymainlythroughsaleactivities(includingtheexchangeofnon-monetaryassetswithcommercialnature,thesamebelow),thenon-currentassetorto-be-disposedportfoliofallsintoheld-for-salecategory.Thespecificcriteria:bothofthefollowingconditionsshallbesatisfied:anon-currentassetorto-be-disposedportfoliocanbesoldimmediatelyunderthecurrentconditionsbasedonthepracticeofsellingsuchassetorto-be-disposedportfolioinsimilartransactions;theCompanyhasalreadydecidedonthesaleplanandobtainedconfirmedpurchasecommitment;thesaleisscheduledtobecompletedwithinoneyear.Amongthem,aDisposalPortfolioreferstoagroupofassetsthatwillbedisposedofasawholethroughsaleorotherapproachesinatransaction,andtheliabilitiesdirectlyassociatedwiththeseassetstransferredalongwiththeassetsintransaction.IftheportfolioofassetsorgroupofportfoliosofassetsisallocatedgoodwillacquiredinbusinessmergerinaccordancewithAccountingStandardsforBusinessEnterprisesNo.8-AssetImpairment,theDisposalPortfolioshallincludethegoodwillallocatedtoit.
Intheeventthatthebookvalueofanon-currentassetorto-be-disposedportfoliothathasbeendesignatedasheld-for-salecategoryishigherthanthenetamountoffairvaluelesssalesexpenseswhenthenon-currentassetorto-be-disposedportfolioisinitiallymeasuredormeasuredonthebalancesheetdate,thebookvalueshallbetothenetamountoffairvalueminussalesexpenses,andthewritten-downamountshallberecognizedasassetimpairmentlossand
includedincurrentperiodprofitorloss.Theprovisionforimpairmentlossoftheheld-for-saleassetshallbeaccrued.ForaDisposalPortfolio,theconfirmedimpairmentlossshalldeductthebookvalueofthegoodwillintheDisposalPortfolio,thendeductthebookvalueofthenon-currentassetsdeterminedbythemeasurementonapro-ratabasisinaccordancewiththeapplicableAccountingStandardsforBusinessEnterprisesNo.42held-for-salenon-currentassets,DisposalPortfolioandTerminationofOperations(hereinafterreferredtoasthe“GuideforHeld-For-Sale”).Intheeventofanincreaseofthebookvalueoftheheld-for-saleDisposalPortfoliominussalesexpensesonthesubsequentthebalancesheetdate,theamountpreviouslywrittendownshallberecoveredandbereversedwithinthemountoftheassetimpairmentlossrecognizedinthenon-currentassetsmeasuredbythemeasurement“GuideforHeld-For-Sale”afterbeingclassifiedasheldforsaleasset,thereversalamountshallbeincludedinthecurrentperiodprofitorloss,andthebookvalueofallnon-currentassets(exceptforgoodwill)determinedbythemeasurementonapro-ratabasisinaccordancewiththeapplicable“GuideforHeld-For-Sale”shallbeincreasedonapro-ratabasis.Thebookvalueofthegoodwillthathasbeendeductedandtheimpairmentlossoftheassetsrecognizedbeforetheclassificationoftheheld-for-salenon-currentassetsinaccordancewiththeapplicable“GuideforHeld-For-Sale”shallnotbereversed.
Intermsoftheheld-for-salenon-currentassetsornon-currentassetsinDisposalPortfolio,thereisnoaccrualoramortizationfordepreciation,andtheinterestfromandotherexpensesfromtheliabilitiesinheld-for-saleDisposalPortfolioshallstillberecognized.
Whenanon-currentassetorDisposalPortfolionolongermeetstheconditionsforHeld-For-Salecategory,non-currentassetorDisposalPortfoliowillnolongerbeclassifiedasHeld-For-SalecategorybytheCompanyorthenon-currentassetwillberemovedfromtheHeld-For-SaleDisposalPortfolio,andbemeasuredbasedononeofthefollowingtwovalues,whicheverislower:(1)Thebookvaluebeforebeingclassifiedasheld-for-salecategoryadjustedbasedonthedepreciation,amortizationorimpairmentthatshouldhavebeconfirmedifitisnotclassifiedasheld-for-salecategory;(2)recoverableamount.
13.Long-termequityinvestment
Thelong-termequityinvestmentreferstointhispartreferstothelong-termequityinvestmentthattheCompanyhascontrol,jointcontrolorsignificantinfluenceontheinvestedentity.Thelong-termequityinvestmentoftheCompanythatdoesnothavecontrol,jointcontrolorsignificantimpactontheinvesteeshallbeaccountedasafinancialassetmeasuredatfairvaluewithitschangesincludedintothecurrentprofitsandlosses.Amongthem,ifitisnon-transactional,theCompanymaychoosetodesignateitasafinancialassetmeasuredatfairvalueanditschangesareincludedintheaccountingofothercomprehensiveincomeatthetimeofinitialrecognition.Fordetailsofitsaccountingpolicies,pleaserefertoNoteⅢ,9“FinancialInstruments".
JointcontrolreferstothecontrolthattheCompanyshareswithotherparty/partiesforanarrangementinaccordancewithrelevantagreements,andrelevantactivitiesofthearrangementcanonlybedecidedbasedontheconsensusofallpartiessharingthecontrolrightsbeforemakingadecision.SignificantInfluencereferstopoweroftheCompanytoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestee,buttheCompanycannotcontrolor
jointlycontrolthedevelopmentofthesepolicieswithotherparties.
(1)DeterminationofinvestmentcostForalong-termequityinvestmentobtainedfromacombinationofbusinessesunderthesamecontrol,theapportionedshareofthebookvalueinthefinalcontroller'sconsolidatedfinancialstatementsonthecombinationdateinaccordancewiththeshareholders'equityshallbetheinitialinvestmentcostofthelong-termequityinvestment.Thecapitalreserveshallbeadjustedsubjecttothedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthecashpaid,thenon-cashassetstransferred,andthebookvalueofthedebtsassumed;ifthecapitalreserveisinsufficientforoffsetting,theretainedearningsshallbeadjusted.Wheretheequitysecuritiesareissuedasmergerconsideration,theapportionedshareofthebookvalueinthefinalcontroller'sconsolidatedfinancialstatementsonthecombinationdateinaccordancewiththeshareholders'equityshallbetheinitialinvestmentcostofthelong-termequityinvestment,andthetotalparvalueoftheissuedsharesistakenasthesharecapital.Thecapitalreserveshallbeadjustedsubjecttothedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthetotalparvalueofthesharesissued;ifthecapitalreserveisinsufficientforoffsetting,theretainedearningsshallbeadjusted.Wheretheequityofcombinedpartiesunderthesamecontrolisobtainedthroughmultipletransactionsandabusinesscombinationunderthesamecontrolisformedfinally,itshallbetreateddifferentiallybasedonwhetheritisa“packagedeal”:ifitbelongstoa“packagedeal”,alltransactionswillbetreatedasatransactionthatobtainscontrol.Ifitisnota“packagedeal”,theapportionedshareofthebookvalueinthefinalcontroller'sconsolidatedfinancialstatementsonthecombinationdateinaccordancewiththeshareholders'equityshallbetheinitialinvestmentcostofthelong-termequityinvestment.Thecapitalreserveshallbeadjustedsubjecttothedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthesumofthebookvalueoflong-termequityinvestmentbeforecombinationdateandthebookvalueofthenewconsiderationforthenewshareonthecombinationdate.Ifthecapitalreserveisinsufficientforoffsetting,theretainedearningsshallbeadjusted.Theequityinvestmentsthatareheldpriortothecombinationdateandarerecognizedwithequityrecognizedorasavailable-for-salefinancialassetasothercomprehensiveincomewillnotbegivenaccountingtreatmentforthemoment.
Foralong-termequityinvestmentobtainedfromacombinationofbusinessesnotunderthesamecontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbebasedonthecombinationcostonthepurchasedate.Thecombinationcostincludestheassetspaidbypurchaser,theliabilitiesincurredorassumed,andthesumofthefairvalueofissuedequitysecurities.Wheretheequityofcombinedpartiesnotunderthesamecontrolisobtainedthroughmultipletransactionsandabusinesscombinationunderthesamecontrolisformedfinally,itshallbetreateddifferentiallybasedonwhetheritisa“packagedeal”:ifitbelongstoa“packagedeal”,alltransactionswillbetreatedasatransactionthatobtainscontrol.Ifitisnota“packagedeal”,theinitialinvestmentcostofthelong-termequityinvestmentcalculatedbythecostmethodshallbecalculatedbasedonthesumofthebookvalueoftheequityinvestmentintheoriginalholderandthenewinvestmentcost.Theoriginalshareholdingthatmeasuredusingequitymethod,therelevantothercomprehensiveincomedoestemporarilynotconductaccountingtreatment.
Intermediaryexpensessuchasforauditing,legalservices,assessmentandotherrelatedexpensesincurredbya
combiningpartyorapurchaserforbusinesscombinationshallberecognizedincurrentperiodprofitorlosswhenincurred.Theequityinvestmentsotherthanformedbybusinesscombinationshallbeinitiallymeasuredatcost.Thecostwillbedeterminedbasedonthefollowingamountaccordingtodifferentmethodsoftheacquisitionoflong-termequityinvestment:
thepurchasepriceincashactuallypaidbytheCompany;thefairvalueoftheequitysecuritiesissuedbytheCompany,thevalueagreedinrelevantinvestmentcontractoragreement;thefairvalueororiginalbookvalueoftheassetsexchangedinnon-monetaryassetexchangetransaction;thefairvalueofthelong-termequityinvestmentitself.Anyexpenses,taxesandothernecessaryexpensesdirectlyrelatedtotheacquisitionoflong-termequityinvestmentsshallalsobeincludedinthecostofinvestment.Thecostoflong-termequityinvestmentfortheadditionalinvestmentthatcanexertsignificantinfluenceoninvesteeorimplementjointcontrolbutdoesnotconstitutecontrolshallbethesumofthefairvalueoftheoriginallyheldequityinvestmentrecognizedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo..22–
RecognitionandMeasurementofFinancialInstrumentsandthecostfornewinvestment.
(2)Follow-upmeasurementandconfirmationmethodsforprofitandlossTheEquityMethodshallbeusedtoaccountforlong-termequityinvestmentsthathavejointcontrolovertheinvestedentity(exceptforthoseconstitutingjointoperators)orhavesignificantimpactontheinvestedentity.Inaddition,thecompany'sfinancialstatementsusetheCostMethodtoaccountforlong-termequityinvestments,whichcancontrolthelong-termequityinvestmentoftheinvestee.a.Long-termequityinvestmentbasedonCostMethodWhenaccountingwithCostMethod,long-termequityinvestmentispricedattheinitialinvestmentcost,andthecostofthelong-termequityinvestmentisadjustedbyaddingorrecoveringtheinvestment.Exceptfortheactualpaymentatthetimeofobtaininginvestmentorthecashdividendsorprofitsincludedintheconsiderationbutnotyetissued,thecurrentinvestmentincomeshallberecognizedaccordingtothecashdividendsorprofitsdeclaredbytheinvestee.
b.Long-termequityinvestmentaccountedforbyEquityMethodWhenaccountingwithEquityMethod,iftheinitialinvestmentcostofalong-termequityinvestmentisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteewheninvesting,andtheinitialinvestmentcostofthelong-termequityinvestmentshallnotbeadjusted;iftheinitialinvestmentcostislessthanthefairvalueshareoftheidentifiablenetassetsoftheinvesteewheninvesting,thedifferenceshallbeincludedinthecurrentprofitandloss,andthecostofthelong-termequityinvestmentshallbeadjusted
WhenaccountingwithEquityMethod,theinvestmentincomeandothercomprehensiveincomearerecognizedseparatelyaccordingtothesharesofthenetprofitorlossandothercomprehensiveincomethatshouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentshouldbeadjustedatthesametime.Thebookvalueoflong-termequityinvestmentisreducedaccordinglybycalculatingthesharethatshouldbeenjoyedaccordingtotheprofitorcashdividenddeclaredbytheinvestee.Thebookvalueoflong-termequityinvestmentshallbeadjustedandincludedinthecapitalreserveforotherchangesintheowner'srightsandinterestsoftheinvestedentityotherthanthenetprofitandloss,othercomprehensiveincomeandprofitdistribution.Whenconfirmingtheshareofthenetprofitandlossoftheinvestee,the
netprofitoftheinvesteeshallbeadjustedandconfirmedonthebasisofthefairvalueoftheidentifiableassetsoftheinvesteeatthetimeofinvestment.IftheaccountingpoliciesandperiodsadoptedbytheinvestedentityareinconsistentwiththeCompany,thefinancialstatementsoftheinvestedentityshallbeadjustedinaccordancewiththeaccountingpoliciesandperiodsoftheCompany,andtheinvestmentincomeandothercomprehensiveincomeshallbeconfirmedaccordingly.ForthetransactionsbetweentheCompanyandtheassociatesandjointventures,theassetsinvestedorsolddonotconstituteabusiness,andtheunrealizedgainsandlossesfrominternaltransactionsareoffsetagainsttheportionoftheCompanythatisattributabletotheproportionoftheshares,onthisbasis.investmentprofitandlossshouldbeconfirmed.However,theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearenotincludedintheimpairmentlossesofthetransferredassets.WheretheassetsinvestedbytheCompanyintoajointventureoranassociatesconstituteabusiness,iftheinvestorobtainslong-termequityinvestmentbutdoesnotcontrol,thefairvalueoftheinvestedbusinessshallbedeemedastheinitialinvestmentcostofthenewlong-termequityinvestment,andthedifferencebetweentheinitialinvestmentcostandthebookvalueoftheinvestedbusinessisfullyrecognizedinthecurrentprofitsandlosses.IftheassetssoldbytheCompanytoajointventureoranassociatethatconstituteabusiness,thedifferencebetweentheconsiderationvalueobtainedandthebookvalueofthebusinessshallbefullyrecognizedintheprofitsandlossesofthecurrentperiod.
Whenconfirmingthenetlossthatincurredbytheinvesteeshouldbeshared,thebookvalueofthelong-termequityinvestmentandotherlong-termequitythatsubstantiallyconstitutesthenetinvestmentoftheinvesteearereducedtozero.Inaddition,iftheCompanyhasanobligationtobearadditionallossestotheinvestee,theestimatedliabilitiesshallberecognizedaccordingtotheestimatedobligationsandincludedinthecurrentinvestmentlosses.Iftheinvesteeachievesnetprofitinthefollowingperiod,theCompanyshallresumerecognizingtheshareofincomeaftermakingupfortheunrecognizedshareofloss.
Forthelong-termequityinvestmentinthejointventuresandassociatesheldbytheCompanyforthefirsttimebeforetheimplementationofthenewaccountingstandards,ifthereisadebitbalanceofequityinvestmentsrelatedtotheinvestment,thecurrentprofitsandlossesshallbeaccountedforbythestraight-lineamortizationoftheoriginalremainingperiod.
c.AcquisitionofMinorityEquity
Inthepreparationoftheconsolidatedfinancialstatements,ifthedifferencebetweenthelong-termequityinvestmentaddedbypurchasingminoritysharesandthenetassetssharethatshouldbecontinuouslycalculatedbythesubsidiarycompanyfromthepurchasedate(ortheconsolidationdate)iscalculatedaccordingtotheproportionofnewlyaddedshares,theretainedearningsshallbeadjusted;andifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
d.Disposaloflong-termequityinvestment
Intheconsolidatedfinancialstatements,theparentcompanypartiallyofdisposesofthelong-termequityinvestmentofthesubsidiarywithoutlosingcontrol,thedifferenceofthecorrespondingnetassetsinthesubsidiarybetweenthedisposalpriceandthedisposalofthelong-termequityinvestmentisincludedintheshareholders'equity.itshallbetreatedin
accordancewiththerelevantaccountingpoliciesdescribedin“Notesonthepreparationofconsolidatedfinancialstatements”inNoteⅢ.5.
Forthedisposaloflong-termequityinvestmentinothercases,thedifferencebetweenthebookvalueofthedisposedequityandtheactualacquisitionpriceshallbeincludedinthecurrentprofitsandlosses.Ifthelong-termequityinvestmentisaccountedforbyequitymethod,theremainingequityafterdisposalisstillaccountedforbyequitymethod,whendisposing,theothercomprehensiveincomewhichwereoriginallyincludedinshareholder'srightsandinterestsshallbeaccountedforonthesamebasisastheassetsorliabilitiesdirectlydisposedofbytheinvestee.Theowner'sequityrecognizedasaresultofchangesintheowner'sequityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution,itshouldbecarriedforwardtothecurrentprofitandlossForthelong-termequityinvestmentaccountedbyCostMethod,theremainingequityisstillaccountedbyCostMethodafterdisposal,othercomprehensiveincomethatrecognizedbyequitymethodaccountingorfinancialinstrumentrecognitionandmeasurementcriteriaaccountingbeforeobtainingcontrolovertheinvesteeshallbeaccountedforonthesamebasisastheassetsorliabilitiesdirectlydisposedofbytheinvestee,andshallbesettledtothecurrentprofitandlossinproportion.Changesofthenetassetsofinvesteeintheowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution'sthatrecognizedbyequitymethodshallbesettledtothecurrentprofitandlossinproportion.
WheretheCompanylosescontrolovertheinvesteeduetodisposalofpartofitsequityinvestment,whenpreparingindividualfinancialstatements,iftheremainingequityafterdisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallbeaccountedforbyequitymethodinstead,andtheremainingequityshallbeadjustedbyaccountingbyequitymethodwhenitisdeemedtobeacquired.Iftheremainingequityafterdisposalcannotbejointlycontrolledorexertssignificantinfluenceontheinvestee,itshallbeaccountedforaccordingtotherelevantprovisionsofthefinancialinstrumentrecognitionandmeasurementcriteria,andthedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrol.Itisincludedinthecurrentprofitandloss.BeforetheCompanyobtainscontrolovertheinvestee,othercomprehensiveincomerecognizedbyequitymethodaccountingorfinancialinstrumentrecognitionandmeasurementcriteriaisusedtodirectlydisposeoftherelevantassetswiththeinvestee,accountingtreatmentbasedonthesamebasisastheinvesteedirectlydisposesofrelatedassetsorliabilitieswhenthecontroloftheinvesteeislost,Accountingistreatedonthesamebasisastheliabilities.Changesintheowner'sequityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionoftheinvestee'snetassetsrecognizedbytheequitymethodarecarriedforwardtothecurrentprofitorlosswhenthecontroloftheinvesteeislost.Amongthem,theremainingequityafterdisposalisaccountedforusingtheequitymethod.Wheretheremainingequityafterdisposalisaccountedforbyequitymethod,othercomprehensiveincomeandotherowner'sequityshouldbesettledbyproportion.Iftheremainingequityisaccountedforusingfinancialinstrumentrecognitionandmeasurementstandard,allofothercomprehensiveincomeandothershareholder’sequityshouldbesettled.
IftheCompanylosesitsjointcontrolorsignificantinfluenceontheinvesteeduetothedisposalofpartoftheequityinvestment,theremainingequityafterdisposalshallbeaccountedforaccordingtothefinancialinstrumentrecognitionandmeasurementcriteria,andthedifferencebetweenthefairvalueandthebookvalueonthedateoflossofjointcontrolor
significantinfluenceisrecognisedinthecurrentprofitorloss.Theothercomprehensiveincomerecognizedintheoriginalequityinvestmentbytheequitymethodisaccountedforonthesamebasisastheinvestee'sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodisterminated,Owner'sequityrecognizedasaresultofchangesinotherowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionoftheinvesteeshouldbetransferredtocurrentinvestmentincomewhenterminatingtheequitymethodTheCompanydisposesoftheequityinvestmentinthesubsidiariesstepbystepthroughmultipletransactionsuntilthelossofcontrol.Iftheabove-mentionedtransactionsarepartofapackagetransaction,thetransactionsaretreatedasatransactiondealingwiththeequityinvestmentofthesubsidiaryandlosingcontrol.Thedifferencebetweenthebookvalueofeachlong-termequityinvestmentcorrespondingtothedisposalpriceandthedisposaloftheequitybeforelossofcontrolisfirstrecognizedasothercomprehensiveincome,andwhenthecontrolislost,itistransferredtothecurrentprofitandlossoflossofcontrol.14．InvestmentPropertyInvestmentPropertyreferstopropertyheldforthepurposeofearningrentorcapitalappreciation,orboth,includinglanduserightsthathavebeenleased,landuserightsthatareheldandpreparedfortransferafterappreciation,andbuildingsthathavebeenrented.Investmentpropertyisinitiallymeasuredatcost.Theexpensesrelatedtoinvestmentproperty,iftheeconomicbenefitsrelatedtothisassetarehighlyprobabletoflowintothecompanyandthecostcanbemeasuredreliably,thentheexpensewillaccountforasthecostofinvestmentproperty.Otherexpensesareaccountedforinprofitandlosswhenincurred.TheCompanyadoptsthecostmodeltoconductsubsequentmeasurementofinvestmentpropertyanddepreciationoramortizationaccordingtothepolicyconsistentwiththebuildingorlanduserights.Fordetailsoftheimpairmenttestmethodandimpairmentprovisionmethodofproperty,pleaserefertoNoteⅢ.20“Long-TermAssetImpairment”.Whentheself-usepropertyorinventoryisconvertedintoinvestmentpropertyorinvestmentpropertyisconvertedintoself-useproperty,thebookvaluebeforeconversionisusedastherecordedvalueafterconversion.Whentheuseofinvestmentpropertyischangedtoself-use,theinvestmentpropertyisconvertedintofixedassetsorintangibleassetsfromthedateofchange.Whentheuseofself-usepropertychangestoearnrentorcapitalappreciation,thefixedassetsorintangibleassetsareconvertedintoinvestmentpropertyfromthedateofchange.Inthecaseofinvestmentpropertymeasuredbythecostmodelwhentheconversionoccurs,thebookvaluebeforeconversionisusedastheentryvalueafterconversion;ifitisconvertedintoinvestmentpropertymeasuredbythefairvaluemodel,thefairvalueoftheconversiondateisusedastheentryvalueafterconversion.
Whenaninvestmentrealestateisdisposedof,orpermanentlywithdrawnfromuseandisnotexpectedtoobtaineconomicbenefitsfromitsdisposal,theconfirmationoftheinvestmentrealestateshallbeterminated.Disposalincomefromthesale,transfer,retirementordamageofinvestmentpropertiesischargedtothecurrentprofitandlossafterdeductingitsbookvalueandrelatedtaxesandfees.
15.FixedAssets
(1)ConfirmationconditionsforfixedassetsFixedAssetsrefertotangibleassetsheldforthepurposeofproducinggoods,providinglaborservices,rentingoroperatingmanagement,andhavingaservicelifeofmorethanonefiscalyear.FixedassetsarerecognizedonlywhentheeconomicbenefitsassociatedwiththemarelikelytoflowintotheCompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasuredatcostandtakingintoaccounttheimpactofprojectedabandonmentcosts.
(2)DepreciationmethodsforvarioustypesoffixedassetsFixedassetsaredepreciatedovertheirusefullivesusingthestraight-linemethodfromthemonthfollowingthescheduledavailability.Theservicelife,estimatednetresidualvalueandannualdepreciationrateofvariousfixedassetsareasfollows:
Category
| Category | DepreciationMethod | Depreciationperiod(Year) | Netesidualrate(%) | Annualdepreciationrate(%) |
| Buildings | straight-linedepreciation | 8-50 | 5 | 1.90—11.88 |
| uipElectroniceqment | straight-linedepreciation | 3-10 | 4、5 | 9.50—32.00 |
| Machineryequipment | straight-linedepreciation | 5-28 | 4、5 | 3.39—19.20 |
| Transportfacility | straight-linedepreciation | 5-10 | 4、5 | 9.50—19.20 |
| Officeequipment | straight-linedepreciation | 3-10 | 4、5 | 9.50—32.00 |
| Otherequipment | straight-linedepreciation | 5-28 | 4、5 | 3.39—19.20 |
Theestimatednetresidualvaluereferstotheexpectedstateaftertheestimatedusefullifeofthefixedassetshasexpiredandisattheendofitsusefullife.TheamountcurrentlyobtainedbytheCompanyfromthedisposaloftheassetsafterdeductingtheestimateddisposalexpenses.
(3)ImpairmenttestmethodandImpairmentprovisionmethodforfixedassets
FordetailsofImpairmenttestmethodandimpairmentprovisionmethodforfixedassets,pleaserefertoNoteⅢ.20“Long-TermAssetImpairment”.
(4)Recognitionbasisandvaluationmethodoffixedassetsacquiredbyfinancelease
Afinanceleaseisaleasethattransferssubstantiallyalltherisksandrewardsassociatedwithownershipofanasset,and
itsownershipmayormaynotbetransferred.Ifitisreasonabletodeterminetheownershipoftheleasedassetattheexpirationoftheleaseterm,thedepreciationshallbecalculatedwithintheusefullifeoftheleasedasset;Ifitisnotreasonabletodeterminetheownershipoftheleasedassetattheexpirationoftheleaseterm,depreciationshallbecalculatedwithinarelativelyshortperiodoftheleasetermandtheservicelifeoftheleasedassets.
(5)OthersThesubsequentexpensesrelatedtofixedassets,iftheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowinandtheircostscanbereliablymeasured,areincludedinthecostoffixedassetsandthebookvalueofthereplacedpartshouldbeterminated.Thesubsequentexpendituresotherthanmentionedasabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Thefixedassetisderecognizedwhenthefixedassetisindisposalorisnotexpectedtogenerateeconomicbenefitsbyusingordisposal.Thedifferencebetweenthedisposalincomefromthesale,transfer,retirementordamageofthefixedassetslessthecarryingamountandrelatedtaxesisrecognizedinprofitorlossforthecurrentperiod.TheCompanyreviewstheusefullife,estimatednetresidualvalueanddepreciationmethodoffixedassetsatleastattheendoftheyear,andchangesasanaccountingestimateifchangesoccur.
16.ConstructioninprogressThecostofconstructioninprogressisdeterminedbasedonactualprojectexpenditure,includingvariousprojectexpendituresincurredduringtheconstructionperiod,capitalizedborrowingcostsbeforetheprojectreachestheexpectedusablestatus,andotherrelatedexpenses.Constructioninprogressiscarriedforwardtofixedassetswhenitisreadyforitsintendeduse.Fordetailsoftheimpairmenttestmethodandimpairmentprovisionmethodforconstructioninprogress,pleaserefertoNoteⅢ.20“Long-TermAssetImpairment”.
17.BorrowingCostsBorrowingcostsincludeinterestonborrowings,amortizationofdiscountsorpremiums,ancillaryexpenses,andexchangedifferencesarisingfromforeigncurrencyborrowings.Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofassetseligibleforcapitalization,capitalizationisbeganwhenassetexpenditureshaveoccurred,borrowingcostshaveoccurred,andtheacquisition,constructionorproductionactivitiesnecessarytobringtheassetstotheintendedusableorsaleablestatehavebegun.Andcapitalizationisstoppedwhentheassetsunderconstructionorproductionthatmeetthecapitalizationconditionsarereadyfortheirintendeduseorsaleablestatus.Theremainingborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.
Theinterestexpensesactuallyincurredinthecurrentperiodofspecialborrowingsshallbecapitalizedaftersubtractingtheinterestincomefromtheunusedborrowingfundsdepositedintothebankortheinvestmentincomeobtainedfromthetemporaryinvestment.Forthegeneralborrowings,accordingtotheaccumulatedassetexpendituresexceedthespecialborrowings.Thecapitalizationamountisdeterminedbymultiplyingtheweightedaverageofwhichaccumulatedasset
expenditureexceedstheassetexpenditureofthespecialborrowingportionbythecapitalizationrateofthegeneralborrowingsused.Thecapitalizationrateisdeterminedbasedontheweightedaverageinterestrateofgeneralborrowings.
Duringthecapitalizationperiod,theexchangedifferencesofforeigncurrencyspecialborrowingsareallcapitalized;theexchangedifferencesofforeigncurrencygeneralborrowingsareincludedinthecurrentprofitandloss.Assetseligibleforcapitalizationrefertoassetssuchasfixedassets,investmentpropertyandinventoriesthatrequireasubstantialperiodofacquisition,constructionorproductionactivitiestoachievetheintendeduseorsalestatus.
Iftheassetseligibleforcapitalizationareinterruptedabnormallyduringtheacquisition,constructionorproductionprocessandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspendeduntiltheacquisition,constructionorproductionoftheassetsresumes.
18.Intangibleassets
(1)Intangibleassets
Intangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalformownedorcontrolledbytheCompany.
Intangibleassetsareinitiallymeasuredatcost.ExpenditurerelatedtointangibleassetsisincludedinthecostofintangibleassetsiftherelevanteconomicbenefitsarelikelytoflowtotheCompanyanditscostscanbemeasuredreliably.Expenditureonotheritemsotherthanthisisrecognisedinprofitandlosswhenincurred.
Theacquiredlanduserightsareusuallyaccountedforasintangibleassets.Therelatedlanduserightsandbuildingconstructioncostsofself-developedandconstructedbuildingsareaccountedforasintangibleassetsandfixedassets,respectively.Inthecaseofpurchasedhousesandbuildings,therelevantpriceisdistributedbetweenthelanduserightsandthebuildings.Ifitisdifficulttoallocatethemreasonably,allofthemaretreatedasfixedassets.
Sincetheintangibleassetswithlimitedusefullifeareavailableforuse,theoriginalvalueminustheestimatednetresidualvalueandtheaccumulatedamountofimpairmentreserveshallbeamortizedbythestraight-linemethodduringtheirexpectedservicelife.Intangibleassetswithuncertainservicelifeshallnotbeamortized.
Amongthem,theusefullifeandamortizationmethodofintellectualpropertyareasfollows:
Item
| Item | Amortizationperiod(year) | Amortizationmethod |
| Trademark | 20 | Straight-linemethod |
Attheendoftheperiod,theusefullifeandamortizationmethodsofintangibleassetswithlimitedusefullifearereviewed,andifanychangeoccurs,itistreatedasachangeofaccountingestimate.Inaddition,theusefullifeofintangibleassetswithuncertainservicelifeisalsoreviewed.Ifthereisevidencethattheperiodforwhichtheintangibleassetsbringeconomicbenefitstotheenterpriseisforeseeable,theusefullifeofintangibleassetsisestimatedandamortizedaccordingtotheamortizationpolicyofintangibleassetswithlimitedusefullife
(2)Researchanddevelopmentexpenditure
Thecompany'sexpenditureforinternalresearchanddevelopmentprojectisdividedintoresearchphaseexpenditure
anddevelopmentphaseexpenditure.Expendituresfortheresearchphaseshallberecognizedinprofitorlosswhenincurred.Expendituresforthedevelopmentphasethatmeetthefollowingconditionsshallberecognizedasintangibleassets,andexpendituresinthedevelopmentstagethatfailtomeetthefollowingconditionsareincludedincurrentprofitandloss:
a.Itistechnicallyfeasibletocompletetheintangibleassettoenableittobeusedorsold.b.Theintenttocompletetheintangibleassetanduseorsellit;c.Thewayinwhichintangibleassetsgenerateeconomicbenefits,includingtheabilitytoprovethattheproductsproducedfromtheintangibleassetshavingamarketortheintangibleassetshavingamarket,andtheintangibleassetswillbeusedinternally,whichcanproveitsusefulness;
d.sufficienttechnical,financialresourcesandotherresourcesforsupportingthedevelopmentoftheintangibleassetsandtheabilitytouseorselltheintangibleassets.e.Expenditureattributabletothedevelopmentphaseoftheintangibleassetcanbereliablymeasured.Ifitisimpossibletodistinguishtheexpendituresbetweenresearchphaseanddevelopmentphase,allresearchanddevelopmentexpendituresincurredwillbeincludedinthecurrentprofitandloss.
(3)ImpairmenttestmethodandImpairmentprovisionmethodforintangibleassets
Fordetailsoftheimpairmenttestmethodandimpairmentprovisionmethod,pleaserefertoNoteⅢ.20“Long-TermAssetImpairment”.
19．Long-termDeferredExpenses
Thelong-termdeferredexpensesareallexpensesthathaveoccurredbutshallbebornebythereportingperiodandsubsequentperiodswithamortizationperiodofmorethanoneyear.Thecompany'slong-termdeferredexpensesmainlyincludeleaseoflanduserightandrenovationcostsoffactorybuilding.Long-termdeferredexpensesareamortizedonastraight-linebasisovertheestimatedbenefitperiod.
20.Long-termassetsimpairment
Forfixedassets,constructioninprogress,intangibleassetswithlimitedusefullife,investmentpropertymeasuredbycostmodel,andnon-currentnon-financialassetssuchaslong-termequityinvestmentsinsubsidiaries,jointventuresandassociates,theCompanydetermineswhetherthereisanyindicationofimpairmentonthebalancesheetdate.Ifthereisanyindicationofimpairment,therecoverableamountisestimatedandtheimpairmenttestiscarriedout.Goodwill,intangibleassetswithuncertainservicelifeandintangibleassetsthatnotyetreadyforusearetestedforimpairmentannually,regardlessofwhetherthereisanyindicationofimpairment.
Iftheresultoftheimpairmenttestindicatesthattherecoverableamountoftheassetislowerthanitsbookvalue,theimpairmentprovisionismadebasedonthedifferenceandisincludedintheimpairmentloss.Therecoverableamountisthehigherofthefairvalueoftheassetlessthedisposalexpenseandthepresentvalueoftheestimatedfuturecashflowoftheasset.Thefairvalueofassetsisdeterminedaccordingtothesaleagreementpriceinafairtransaction.Ifthereisnosales
agreementbutthereisanactivemarketfortheasset,thefairvalueisdeterminedaccordingtothebuyer'sbidfortheasset;ifthereisneithersalesagreementnoractivemarketforassets,thefairvalueofassetsshallbeestimatedbasedonthebestinformationavailable.Assetdisposalexpensesincludelegalfee,taxes,transportationexpensesanddirectexpensesincurredtomakeassetssaleable.Thepresentvalueoftheestimatedfuturecashflowofanassetisdeterminedbytheappropriatediscountratediscountingandtheestimatedfuturecashflowgeneratedbytheassetduringitscontinuoususeandfinaldisposal.Theassetimpairmentprovisioniscalculatedandconfirmedbasedonindividualassets.Ifitisdifficulttoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetisdeterminedbytheassetgroupwhichtheassetbelongsto.Anassetgroupisthesmallestportfolioofassetsthatcangeneratecashinflowsindependently.
Thebookvalueofthegoodwilllistedseparatelyinthefinancialstatementsisamortizedintoassetgroupsorportfoliosthatareexpectedtobenefitfromthesynergiesofbusinesscombinationswhenimpairmenttestsareconducted.Thetestresultsshowthattherecoverableamountoftheassetgrouporportfoliocontainingtheassessedgoodwillislowerthanitsbookvalue,thecorrespondingimpairmentlossesshouldbeconfirmed.Theamountofimpairmentlossisfirstdeductedfromthebookvalueofthegoodwillamortizedtotheassetgrouporportfolio,andthendeductedproportionallyfromthebookvalueofotherassetsaccordingtotheproportionofthebookvalueofassetsotherthangoodwillintheassetgrouporportfolio.Oncetheaboveassetimpairmentlossisconfirmed,itwillnotbereversedtothepartwherethevalueisrestoredinthefutureperiod.
21.EmployeeCompensation
TheCompany'semployeecompensationmainlyincludesshort-termemployeeremuneration,Post-employmentBenefits,TerminationBenefitsandbenefitsforotherlong-termemployee.Amongthem:
Short-termemployeesremunerationmainlyincludeswages,bonuses,allowancesandsubsidies,employeewelfarefees,medicalinsurancepremiums,maternityinsurancepremiums,workinjuryinsurancepremiums,housingfund,laborunionfunds,employeeeducationfunds,andnon-monetarybenefits.TheCompanyrecognizestheactualshort-termemployee'sremunerationasaliabilityintheaccountingperiodinwhichemployeesprovideservicestotheCompanyandrecognizestheminprofitorlossorrelatedassetcosts.Non-monetarybenefitsaremeasuredatfairvalue.
Post-employmentBenefitsmainlyincludebasicretirementsecurity,unemploymentinsurance,andannuities.ThePost-employmentBenefitSchemeincludesaDefinedContributionPlanandaDefinedBenefitPlan.IfaDefinedContributionPlanisadopted,thecorrespondingamountofthedepositshallbeincludedintherelevantassetcostorcurrentprofitandlossasincurred.(1)TheDefinedContributionPlanisrecognizedasaliabilitybasedonafixedfeepaidtoanindependentfundandisincludedinthecurrentprofitandlossorrelatedassetcosts;(2)TheDefinedBenefitPlanisaccountedforusingtheexpectedcumulativebenefitsunitmethodSpecifically,theCompanywillconvertthewelfareobligationarisingfromtheDefinedBenefitPlanintothefinalvalueofthedeparturetimeaccordingtotheformuladeterminedbytheexpectedcumulativebenefitsunitmethod;thenitisattributedtotheemployee'sin-serviceperiodandisincludedinthecurrentprofitandlossorrelatedassetcost.
Ifthelaborrelationshipwiththeemployeeisterminatedbeforetheemployee'slaborcontractexpires,oriftheemployeeisencouragedtoacceptthereductionvoluntarily,whencannotwithdrawingunilaterallythedismissalbenefitsprovidedbytheterminationofthelaborrelationshipplanorthereductionproposal,andwhenconfirmingthecostsassociatedwiththerestructuringinvolvingthepaymentofthedismissalbenefits,whicheverisearlier,theCompanywillrecognizetheemployeecompensationliabilitiesarisingfromthedismissalbenefits,andincludedinthecurrentprofitandloss.However,ifthedismissalbenefitsarenotexpectedtobefullypaidwithin12monthsaftertheendofannualreportingperiod,theyshallbetreatedinaccordancewithotherlong-termemployeecompensations.
Theinternalretirementplanforemployeesshallbetreatedinthesamewayastheabove-mentioneddismissalbenefits.Thecompanywillpaytheinternalretiredstaffthesalaryandthesocialinsurancepremiumsfromtheemployee'slay-offtonormalretirement,andwillincludeinthecurrentprofitandloss(dismissalbenefits)whentheconditionsoftheestimatedliabilitiesaremet.
Iftheotherlong-termemployeebenefitsprovidedbytheCompanytotheemployeesareinlinewiththeDefinedContributionPlan,theyshallbeaccountedforDefinedContributionPlan,andotherwiseaccountedfortheDefinedBenefitPlan.
22.Estimatedliabilities
Whentheobligationsrelatedtothecontingenciesmeetthefollowingconditions,theyarerecognizedasestimatedliabilities:(1)TheobligationisthecurrentobligationassumedbytheCompany;(2)Theperformanceofthisobligationislikelytoresultintheoutflowofeconomicbenefits;(3)Theamountoftheobligationcanbereliablymeasured.
Onthebalancesheetdate,takingintoaccountfactorssuchasrisks,uncertaintiesandtimevalueofmoneyrelatedtocontingencies,theestimatedliabilitiesaremeasuredinaccordancewiththebestestimateoftheexpenditurerequiredtoperformtherelevantcurrentobligations.
Ifallorpartoftheexpensesrequiredtodischargetheestimatedliabilitiesareexpectedtobecompensatedbythethirdparty,thecompensationamountwillbeseparatelyrecognizedasanassetwhenitisbasicallydeterminedtobereceived,andtheconfirmedcompensationamountdoesnotexceedthebookvalueoftheestimatedliabilities.
(1)LossContract
Alosscontractisacontractinwhichthecostoffulfillingacontractualobligationwillinevitablyoccurmorethantheexpectedeconomicbenefit.Ifthecontracttobeexecutedbecomesalosscontract,andtheobligationarisingfromthelosscontractsatisfiestheconditionsfortherecognitionoftheabove-mentionedestimatedliabilities,theportionofthecontract'sestimatedlossthatexceedstherecognizedimpairmentloss(ifany)ofthecontractedassetisrecognizedastheestimatedliability.
(2)RestructuringObligations
Forrestructuringplansthataredetailed,formal,andhavebeenannouncedtothepublic,theamountoftheestimatedliabilitiesaredeterminedbasedonthedirectexpensesrelatedtothereorganization,subjecttotherecognitionconditionsof
theaforementionedestimatedliabilities.Fortherestructuringobligationtothepartofbusinesssold,theobligationrelatedtothereorganizationisconfirmedonlywhenthecompanypromisestosellpartofthebusiness(thatis,whenthebindingsaleagreementissigned).
23.Share-basedPayments
(1)AccountingTreatmentofShare-basedPaymentsAshare-basedpaymentisatransactionthatgrantsanequityinstrumentorassumesaliabilitydeterminedbasedonanequityinstrumentinordertoobtainservicesfromemployeesorotherparties.Share-basedPaymentsincludeequity-settledsharepaymentandcash-settledsharepayment.a)Equity-settledSharePaymentTheequity-settledsharepaymentinexchangefortheservicesfromemployeeismeasuredatthefairvalueofthegrantingofemployees'equityinstrumentsatthegrantdate.Ifthefairvalueisvestedinthecompletionofthewaitingperiodofserviceorthefulfillmentoftherequiredperformanceconditions,duringthewaitingperiod,theamountofthefairvalueiscalculatedbythestraight-linemethodintotherelevantcostsorexpensesbasedonthebestestimateofthenumberofvestingequityinstruments;OrIfthevestingrightisgrantedimmediatelyafterthegrant,thecalculationoftheamountofthefairvalueisincludedintherelevantcostorexpenseonthegrantdate,andthecapitalreserveisincreasedaccordingly.
Oneachbalancesheetdateduringthewaitingperiod,theCompanymakesthebestestimatebasedonthelatestinformationonthechangesinthenumberofemployeeswithvestingrightsandcorrectsthenumberofequityinstrumentsthatareexpectedtobevested.Theimpactoftheaboveestimatesshallbeincludedinthecurrentrelatedcostsorexpenses,andthecapitalreserveisadjustedaccordingly.
Inthecaseofequity-settledshare-basedpaymentsinexchangeforotherparties'services,ifthefairvalueofotherparties'servicescanbereliablymeasured,thefairvalueofotherservicesshallbemeasuredatthefairvalueonthedateofacquisition;Ifthefairvalueoftheotherparty'sservicescannotbemeasuredreliably,thefairvalueshallbemeasuredatthefairvalueoftheequityinstrumentatthedatetheserviceisacquired,andisincludedintherelevantcostorexpense,whichincreasestheshareholders'equityaccordingly.
b)Cash-settledSharePayment
Thecash-settledsharepaymentismeasuredatthefairvalueoftheliabilitiesdeterminedbytheCompanybasedonsharesorotherequityinstruments.Ifthevestingrightisavailableimmediatelyafterthegrant,therelevantcostsorexpensesshallbeincludedonthedateofgrant,andtheliabilitiesshallbeincreasedaccordingly;ifvestingrightisavailableaftertheserviceiscompletedwithinthewaitingperiodormettherequiredperformanceconditions,basedonthebestestimateofthevestingrightsoneachbalancesheetdateofthewaitingperiod,accordingtothefairvalueoftheliabilitiesassumedbythecompany,theservicesobtainedinthecurrentperiodareincludedinthecostorexpense,andtheliabilitiesareincreasedaccordingly.
Thefairvalueoftheliabilitiesshallbere-measuredoneachbalancesheetdateandsettlementdatebeforethe
settlementoftherelevantliabilities,andthechangesshallberecordedintheprofitandlossofthecurrentperiod.
(2)RelevantAccountingTreatmentofshare-basedpaymentplan’smodificationandterminationWhentheCompanymodifiestheshare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreaseinthefairvalueoftheequityinstrumentsisrecognizedaccordingly.Theincreaseinthefairvalueofequityinstrumentsreferstothedifferencebetweenthefairvalueoftheequityinstrumentsbeforeandafterthemodification.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentoradoptsothermethodsthatarenotconducivetotheemployee,theserviceobtainedshallcontinuetobeaccountedfor,asifthechangehasneveroccurred,unlesstheCompanycancelssomeorallofequityinstruments.Duringthewaitingperiod,ifthegrantedequityinstrumentiscancelled,theCompanywillcancelthegrantedequityinstrumentasanacceleratedexercise,andtheamounttoberecognizedintheremainingwaitingperiodwillbeimmediatelyincludedinthecurrentprofitandloss,andthecapitalreservewillberecognized.Iftheemployeeorotherpartycanchoosetomeetthenon-vestingconditionsbutfailstomeetthewaitingperiod,theCompanywilltreatitasacancellationoftheequityinstrument.
(3)AccountingTreatmentofSharePaymentTransactionsbetweentheCompanyanditsShareholdersorActualControllersInrespectoftheshare-basedpaymenttransactionbetweenthecompanyandtheshareholdersoractualcontrollersofthecompany,Ifoneofthesettlemententerpriseandtheservicereceivingenterpriseisinthecompanyandtheotherisoutsidethecompany,itshallbeaccountedforintheconsolidatedfinancialstatementsofthecompanyaccordingtothefollowingprovisions:
a.)Ifthesettlemententerprisesettleswithitsownequityinstrument,theshare-basedpaymenttransactionshallbetreatedasequity-settledshare-basedpayment;otherwise,itshallbetreatedasacash-settledshare-basedpayment.
Ifthesettlemententerpriseisaninvestorofaservicedenterprise,itshallberecognizedasthelong-termequityinvestmentoftheservicedenterpriseaccordingtothefairvalueoftheequityinstrumentatthegrantdateorthefairvalueoftheliabilitytobeassumed,andthecapitalreserve(othercapitalreserve)orliabilitiesshallberecognized.
b.)Iftheservicedenterprisehasnosettlementobligationorgrantsitsownemployeestheequityinstruments,thesharepaymenttransactionshallbetreatedasequity-settledsharepayment;iftheservicedenterprisehassettlementobligationandgrantsitsemployeesotherthanitsownequityinstruments,thesharepaymenttransactionshallbetreatedasacash-settledsharepayment.
Forthesharebasedpaymentincurredbetweencompanieswithinthegroup,iftheservicedenterpriseandsettlememtenterprisearenotthesame,thenthepaymentshouldberecpgnizedandmeasuredintheirindividualfinancialstatements,theyshouldbeaccountedforusingtheaboveprinciples
24.PreferredStock,PerpetualCapitalSecuritiesandOtherFinancialInstruments
(1)DistinctionbetweenperpetualcapitalsecuritiesandPreferredStock
FinancialinstrumentssuchasperpetualbondsandpreferredstocksissuedbytheCompany,aswellasmeetingthefollowingconditions,shallbeusedasequityinstruments:
a.)Thefinancialinstrumentdoesnotincludecontractualobligationstodelivercashorotherfinancialassetstootherpartiesortoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyadverseconditions.
b.)Inthecaseofthefinancialinstrumentistobesettledoravailablewiththecompany'sownequityinstrumentsinthefuture,ifthefinancialinstrumentisanon-derivative,itdoesnotincludethecontractualobligationtodeliveravariableamountofitsownequityinstruments;ifitisaderivative,theCompanycanonlysettlethefinancialinstrumentbyexchangingafixedamountofcashorotherfinancialassetswithafixedamountofitsownequityinstruments.
Exceptforfinancialinstrumentsthatcanbeclassifiedundertheaboveconditions,otherfinancialinstrumentsissuedbytheCompanyshouldbeclassifiedasfinancialliabilities.
IfthefinancialinstrumentsissuedbytheCompanyarecompoundfinancialinstruments,theyarerecognizedasaliabilitybasedonthefairvalueoftheliabilitycomponent,andarerecognizedas“otherequityinstruments”basedontheamountactuallyreceivedafterdeductingthefairvalueoftheliabilitycomponent.Thetransactioncostsincurredinissuingacompoundfinancialinstrumentareapportionedinproportiontotheirrespectivetotalissuepricebetweentheliabilitycomponentandtheequitycomponent.
(2)Accountingtreatmentmethodssuchasperpetualcapitalsecuritiesandpreferredstocks
Relatedinterest,dividends,gainsorlossesoffinancialinstrumentssuchasperpetualcapitalsecuritiesandpreferredstocksclassifiedasfinancialliabilities,andgainsorlossesarisingfromredemptionorrefinancing,areincludedinthecurrentprofitsandlossesexceptforborrowingcoststhatmeetthecapitalizationconditions(seeNote3,17“BorrowingFees”).
Whenfinancialinstrumentssuchasperpetualcapitalsecuritiesandpreferredstocksclassifiedasequityinstrumentsareissued(includingrefinancing),repurchased,soldorcancelled,theCompanyshalltreatitasachangeinequity,andrelatedtransactioncostsarealsodeductedfromequity.TheCompany'sallocationofequityinstrumentholdersistreatedasprofitdistribution.
TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.
25.Revenue
Thecompany'soperatingincomemainlyincludesincomefromsellinggoods,incomefromprovidingservices,royaltyincome,interestincome,etc.Whenthecompanysignsacontract,itevaluatesthecontract,identifiestheindividualperformanceobligationscontainedinthecontract,anddetermineswhethertheindividualperformanceobligationsareperformedwithinacertainperiodoftimeoratacertainpointoftime.Whenthecompanyhasfulfilledalltheperformanceobligationsinthecontract,therevenueshallberecognizedrespectivelyaccordingtothetransactionpriceapportionedtotheperformanceobligations.
(1)Revenuerecognitionforfulfillingperformanceobligationatacertaintimepoint
Generally,thecompanyrecognizestherevenuefromthesalesofgoodsbasedonthetransactionpriceapportionedtothesingleperformanceobligationwhenthecustomerobtainsthecontrolrightoftherelevantgoodsonthebasisofcomprehensivelyconsideringthefollowingfactors:thecompanyhastherighttoreceivepaymentinrespectofthegoodsorservicescurrently,thatis,thecustomerhastheobligationtopayforthegoodscurrently;thecompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods;TheCompanyhastransferredthephysicalgoodsofthecommoditytotheCustomerortheCustomerhasobtainedthequalificationofphysicalgoodsrightofthecommodity.TheconsiderationobtainedbytheCompanyinrespectofthetransferofthecommodityislikelytoberecovered;Otherindicationsthatthecustomerhastakencontrolofthecommodity.
Thespecificprinciplesofthecompany'ssalesrevenuerecognitionareasfollows:whenthecommodityhavebeendeliveredtothecustomerandsignedbythecustomerforconfirmation,ortheownershipcertificateofthecommodityhasbeendeliveredtothecustomer,thesalesrevenueisrecognizedwhenthecompanyhasreceivedthepaymentorobtainedtheevidenceofpayment.
(2)Revenuerecognitionforfulfillingperformanceobligationwithinacertainperiodoftime
Fortheperformanceobligationsperformedinacertainperiodoftime,suchastheservicesprovided,thecompanyadoptstheoutputmethodorinputmethodtodeterminetheappropriateperformanceprogress,andrecognizestherevenueaccordingtotheperformanceprogressinthatperiodoftime.Onthebalancesheetdate,thecompanyshallrecognizethecurrentincomeaccordingtothetotaltransactionpriceofthecontractmultipliedbytheprogressofperformanceminustheaccumulatedrecognizedincome.Ifoneofthefollowingconditionsissatisfied,itisregardedastheperformanceobligationperformedduringacertainperiodoftime:theCustomerobtainsandconsumestheeconomicbenefitsarisingfromtheperformanceoftheCompanyatthesametimeoftheperformanceoftheCompany;Customerscancontrolthegoodsunderconstructionduringtheperformanceofthecontract;TheproductsproducedbytheCompanyduringtheperformanceoftheContractareofirreplaceableuse,andtheCompanyshallbeentitledtoreceivepaymentfortheaccumulatedpartofthecompletedperformancesofarduringthewholetermoftheContract.Otherwise,theCompanyrecognizesrevenueatthepointwhentheCustomeracquirescontroloftherelevantgoodsorservices.
TheCompany'srightstoreceiveconsiderationforgoodsorservicestransferredtotheCustomer(andsuchrightsdependonfactorsotherthanthetimepassage)arepresentedascontractualassets,whicharesubjecttoimpairmentonthebasisofexpectedcreditlosses.Thecompany'srighttocollectconsiderationfromcustomersunconditionally(onlydependingonthepassageoftime)islistedasreceivables.TheobligationoftheCompanytotransfergoodsorservicestocustomersforwhichconsiderationhasbeenreceivedorreceivableispresentedasacontractualliability.
26.Contractcost
1.Contractperformancecost
Thecostincurredbythecompanyfortheperformanceofthecontract,whichdoesnotfallwithinthescopeofother
accountingstandardsforbusinessenterprisesotherthantheincomestandardandmeetsthefollowingconditionsatthesametime,isrecognizedasanassetasthecontractperformancecost:
(1)Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsexplicitlybornebythecustomerandothercostsincurredsolelyasaresultofthecontract;
(2)Thecostincreasesthecompany'sresourcesforfulfillingitsperformanceobligationsinthefuture;
(3)Thecostisexpectedtoberecovered.
Theassetsarepresentedininventoryorothernon-currentassetsaccordingtowhethertheamortizationperiodhasexceededonenormaloperatingcycleatthetimeofitsinitialrecognition.
2.Contractacquisitioncost
Iftheincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,itshallberecognizedasanassetasthecontractacquisitioncost.Incrementalcostreferstothecostthatwillnotoccurifthecompanydoesnotobtainthecontract.
3.Amortizationofcontractcosts
Theassetsrelatedtothecontractcostmentionedaboveshallbeamortizedatthetimeofperformanceoftheobligationoraccordingtotheperformanceprogressonthesamebasisastheincomerecognitionofthecommodityorservicerelatedtotheassetandshallberecordedintothecurrentprofitandloss.
4.ImpairmentofcontractcostIfthebookvalueoftheaboveassetsrelatedtothecontractcostishigherthanthedifferencebetweentheresidualconsiderationexpectedtobeobtainedbythecompanyduetothetransferofthegoodsrelatedtotheassetsandtheestimatedcosttobeincurredforthetransferoftherelevantgoods,theexcesspartshallbesetasideasanimpairmentprovisionandrecognizedasanimpairmentlossoftheasset.
27.GovernmentgrantsGovernmentgrantreferstothecompany'sacquisitionofmonetaryandnon-monetaryassetsfromthegovernmentfreeofcharge,excludingthecapitalinvestedbythegovernmentasaninvestorandenjoyingthecorrespondingowner'srightsandinterests.Governmentgrantsincludeassets-relatedgrantsandrevenue-relatedgrants.Thecompanydefinesthegovernmentgrantobtainedforthepurchaseandconstructionoflong-termassetsorfortheformationoflong-termassetsinotherwaysasthegovernmentgrantrelatedtoassets;theremaininggovernmentgrantisdefinedasthegovernmentgrantrelatedtoincome.Iftheobjectofgrantsisnotspecifiedingovernmentdocuments,thegrantsshallbedividedintoincome-relatedgovernmentgrantsandassets-relatedgovernmentgrantsinthefollowingways:(1)Ifthegovernmentdocumentclarifiesthespecificprojectforwhichthegrantistargeted,theproportionoftheexpenditureamountoftheassetstobeformedandtheamountoftheexpendituresincludedintheexpensesinthebudgetofthespecificprojectaredivided,
andtheproportionofgrantdivisionneedstobereviewedoneachbalancesheetdayandchangedifnecessary.(2)Ingovernmentdocuments,ifthepurposeisexpressedonlyingeneraltermsandnospecificprojectisspecified,thegrantshallberegardedasagovernmentgrantrelatedtotheincome.Whereagovernmentgrantisamonetaryasset,itshallbemeasuredaccordingtotheamountreceivedorreceivable.Ifthegovernmentgrantsarenon-monetaryassets,theyshallbemeasuredatthefairvalue;ifthefairvaluecannotbeobtainedreliably,theyshallbemeasuredatthenominalamount.Governmentgrantsmeasuredinnominalamountsshallberecognizeddirectlyincurrentprofitsandlosses.
TheCompanyusuallyconfirmsandmeasuresthegovernmentgrantaccordingtotheamountwhenitisactuallyreceived.However,ifthereisconclusiveevidenceattheendoftheperiodthattherelevantconditionsstipulatedinthefinancialsupportpolicycanbemetandthefinancialsupportfundsareexpectedtobereceived,itshallbemeasuredaccordingtotheamountreceivable.Governmentgrantsmeasuredinaccordancewiththeamountreceivableshallmeetthefollowingconditionsatthesametime:(1)Theamountofthesubventionreceivablehasbeenconfirmedbytheauthorizedgovernmentdepartments,orcanbereasonablycalculatedaccordingtotherelevantprovisionsoftheformallyissuedfinancialfundmanagementmeasures,andthereisnosignificantuncertaintyintheamountexpected;(2)Accordingtothe"RegulationsontheOpennessofGovernmentInformation"thatthelocalfinancialdepartmentofficiallyreleasedandinaccordancewiththeprovisionsofthe"RegulationsontheOpennessofGovernmentInformation,"thefinancialsupportprojectanditsfinancialfundmanagementmeasuresshouldbeinclusive(anyeligibleenterprisecanapplyforthem),ratherthanbeingspecificallytailoredtospecificcompanies;(3)Therelevantgrantapprovalhasclearlypromisedthepaymentperiod,andtheallocationofthepaymentisguaranteedbythecorrespondingbudget,soitcanbereasonablyensurethatitcanbereceivedwithintheprescribedtimelimit;(4)Otherrelevantconditions(ifany)tobemetinaccordancewiththespecificcircumstancesoftheCompanyandthegrants.
Governmentgrantsrelatedtoassetsarerecognizedasdeferredearningsandaredividedintocurrentprofitsandlossesinareasonableandsystematicwayduringtheservicelifeoftheassetsconcerned.Thegovernmentgrantsrelatedtorevenue,whichareusedtocompensatefortherelatedcostorlossinthesubsequentperiod,shallberecognizedasdeferredincome,andshallberecognizedinprofitorlossintheperiodinwhichtherelatedcostsorlossesarerecognized;ifitisusedtocompensatetherelatedcostsorlossesthathasoccurred,itshallbedirectlyrecognizedinthecurrentprofitandloss.
Itincludesgovernmentgrantsrelatedtobothassetsandincome,anddifferentpartsareseparatelyclassifiedforaccountingtreatment;ifitisdifficulttodistinguish,thewholeisclassifiedasgovernmentgrantsrelatedtoincome.
GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedinotherincomeorcostdeductionsaccordingtothenatureoftheeconomicbusiness;governmentsubsidiesunrelatedtodailyactivitiesshallbeincludedinthenon-operatingrevenuesandexpenses.
Whentherecognizedgovernmentgrantsneedtobereturned,iftherearerelevantdeferredearningsbalances,thebookbalanceofrelateddeferredearningsshallbededucted,andtheexcesspartshallbeincludedinthecurrentprofitsandlossesorthebookvalueofassetsshallbeadjusted,otherwise,thebookvalueofassetsshallbedirectlyincludedinthecurrentprofitsandlosses.
Thecompanywillobtainpreferentialpolicyloansdiscountinaccordancewiththefinancewillbeallocatedtotheloanbankdiscountfundsandthefinancewillbedirectlyallocatedtothecompanydiscountfundsintwocases:
(1)Ifthefinancedepartmentallocatesthediscountinterestfundstothelendingbank,andthelendingbankprovidestheloantotheCompanyatthepolicypreferentialinterestrate,theCompanychoosestoconductaccountingtreatmentaccordingtothefollowingmethods:theloanamountactuallyreceivedshallbetakenastheentryvalueoftheloan,andtherelevantborrowingcostsshallbecalculatedinaccordancewiththeloanprincipalandthepolicypreferentialinterestrate.
(2)Ifthefinanceallocatesthediscountfundsdirectlytothecompany,thecompanywilloffsetthecorrespondingdiscountagainsttherelevantborrowingcosts.
28.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)CurrentIncomeTax
Onthebalancesheetdate,thecurrentincometaxliabilities(orassets)formedinthecurrentandpreviousperiodsaremeasuredbytheexpectedamountofincometaxpayable(orreturned)inaccordancewiththeprovisionsoftheTaxLaw.Theamountoftaxableincomeonwhichcurrentincometaxexpensesarecalculatedisbasedonthecorrespondingadjustmentofpre-taxaccountingprofitsinthereportingperiodinaccordancewiththerelevanttaxlaws.
(2)DeferredIncomeTaxAssetsandDeferredIncomeTaxLiabilities
Thedifferencebetweenthebookvalueofcertainassetsandliabilitiesandtheirtaxbasis,andthetemporarydifferencebetweenthebookvalueofitemsthatarenotrecognizedasassetsandliabilitiesbutwhichcanbedeterminedastheirtaxbasisaccordingtothetaxlaw,areconfirmedbythebalancesheetliabilitymethod.
Taxabletemporarydifferenceswhichrelatedtotheinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransactionthatisneitherabusinesscombinationnoranaccountingprofitortaxableincome(ordeductibleloss),relevantdeferredincometaxliabilitiesshallnotberecognized.Inaddition,fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,iftheCompanyisabletocontroltheturnaroundtimeoftemporarydifferences,andthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture,therelateddeferredincometaxliabilitiesshallnotberecognized.Exceptfortheaboveexceptions,theCompanyrecognizesallotherdeferredincometaxliabilitiesarisingfromtaxabletemporarydifferences.
Taxabletemporarydifferenceswhichrelatedtotheinitialrecognitionofanassetorliabilityarisingfromatransactionthatisneitherabusinesscombinationnoranaccountingprofitortaxableincome(ordeductibleloss),relevantdeferredincometaxliabilitiesshallnotberecognized.Inaddition,fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,ifthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture,ortheamountoftaxableincomeusedtooffsetthetemporarydifferenceisunlikelytobeobtainedinthefuture,thedeferredincometaxassetsconcernedshallnotberecognized.Exceptfortheaboveexceptions,theCompanyrecognizesotherdeferredincometaxassetsthatcanoffsettemporarydifferences,subjecttotheamountoftaxableincomethatislikelytobeobtainedtooffsettemporarydifferences.
Fordeductiblelossesandtaxcreditsthatcanbecarriedforwardinsubsequentyears,thecorrespondingdeferred
incometaxassetsarerecognizedtotheextentthatitisprobablethatthefuturetaxableincomeshallbeusedtooffsetthedeductiblelossesandtaxcredits.Onthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredattheapplicabletaxratesintheperiodinwhichtherelatedassetsarerecoveredortherelatedliabilitiesarerecoveredinaccordancewiththetaxlaws.Onthebalancesheetdate,thebookvalueofdeferredincometaxassetsisreviewed.andthebookvalueofdeferredincometaxassetsiswrittendownifitislikelythatsufficienttaxableincomewillnotbeavailabletooffsetthebenefitsofdeferredincometaxassetsinthefuture.Whenitispossibletoobtainsufficienttaxableincome,theamountwrittendownshallbereversed.
(3)IncometaxexpensesIncometaxexpensesincludecurrentincometaxanddeferredincometax.Inadditiontorecognizingthatthecurrentincometaxanddeferredincometaxrelatedtoothertransactionsandmattersdirectlyincludedinshareholder'srightsandinterestsshallberecognizedinothercomprehensiveincomeorshareholder'srightsandinterests,andthebookvalueofadjustedgoodwillfromdeferredincometaxresultingfromthemergerofenterprises,theothercurrentincometaxanddeferredincometaxexpensesorgainsshallberecognizedinprofitorlossforthecurrentperiod.
(4)OffsetofIncomeTaxWhenthecompanyhaslegalrightstosettleonanetbasis,andintendstosettleonanetbasisoracquireassetsandpayoffliabilitiesatthesametime,thecompany'scurrentincometaxassetsandcurrentincometaxliabilitiesshallbepresentedonanetbasisaftertheoffset.Whenithasthelegalrighttosettlecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasis,anddeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesametaxadministrationdepartmentonthesametaxpayerortodifferenttaxpayers,butinthefuture,duringeachimportantperiodofdeferredincometaxassetsandliabilitiesbeingreversed,thetaxpayerinvolvedintendstosettlethecurrentincometaxassetsandliabilitiesonanetbasis,oracquireassetsandpayoffliabilitiessimultaneously,thedeferredtheincometaxassetsanddeferredincometaxliabilitiesoftheCompanyshallbepresentedonanetbasisafteroffset.
29.LeaseFinanceleaseisaleasethatessentiallytransfersallrisksandrewardsrelatedtotheownershipofassets.Itsownershipmayormaynotbetransferredeventually.Leasesotherthanfinanceleasesareoperatingleases.
(1)TheCompanyrecordsoperatingleasebusinessasalessee.Rentalexpensesforoperatingleasesshallbeincludedintherelatedassetcostsorcurrentprofitsandlossesinthestraight-linemethodduringeachperiodoftheleaseperiod.Theinitialdirectcostsshallbeincludedinthecurrentprofitsandlosses.Contingentrentalsshallberecognizedinprofitsandlosseswhenincurred.
(2)ThecompanyrecordsoperatingleasiebusinessasalessorTherentalincomeofoperatingleaseshallberecognizedascurrentprofitandlossaccordingtothestraight-linemethodduringeachperiodoftheleaseperiod.Thelargerinitialdirectexpensesarecapitalizedwhenoccurring,andtheprofitsandlossesofthecurrentperiodshallberecordedinstagesonthesamebasisastherecognizedrentalincomeduringthewholeleaseperiod;thesmallerinitialdirectexpensesshallberecordedintheprofitsandlossesofthecurrentperiodwhenoccurring.Contingentrentalsshallbeincludedincurrentprofitsandlosseswhenactuallyoccurring.
(3)ThecompanyrecordsfinaneleasebusinessasalesseeAtthebeginningoftheleaseperiod,thelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumleasepaymentontheleasestartdateisregardedastheentryvalueoftheleasedassets,andthelowestleasepaymentshallberegardedastheentryvalueofthelong-termpayables,andthedifferenceshallberegardedastheunrecognizedfinancingcost.Inaddition,theinitialdirectcostsattributabletotheleaseprojectshallalsobeincludedinthevalueoftheleasedassetswhentheyoccurduringtheleasenegotiationandthesigningoftheleasecontract.Thebalanceoftheminimumleasepaymentafterdeductingtheunrecognizedfinancingcostsshallbepresentedaslong-termliabilitiesandlong-termliabilitiesduewithinoneyear,respectively.
Theunrecognizedfinancingcostshallbecalculatedbytherealinterestratemethodduringtheleaseperiod.Contingentrentalsshallbeincludedincurrentprofitsandlosseswhenactuallyoccurring.
(4)Thecompanyrecordsfinancieleasebusinessasalessor
Atthebeginningoftheleaseperiod,thesumoftheminimumleasereceiptandtheinitialdirectcostontheleasestartdateisregardedastheentryvalueofthefinancialleasereceivable,andtheunsecuredbalanceshallberecorded.Thedifferencebetweenthesumoftheminimumleasereceivable,theinitialdirectcostandtheunsecuredbalanceandthesumofitspresentvalueisrecognizedastheunrealizedfinancingincome.Thebalanceofthereceivablefinancialleaseafterdeductingtheunrealizedfinancialincomeshallbepresentedaslong-termclaimsandlong-termclaimsmaturingwithinoneyear,respectively.
Theunrealizedfinancingincomeshallbecalculatedandconfirmedbytherealinterestratemethodduringtheleaseperiod.Contingentrentalsshallberecognizedincurrentprofitsandlosseswhenactuallyoccurring.
30.Otherimportantaccountingpoliciesandaccountingestimates
(1)Terminationofbusiness
Terminationofoperationreferstoacomponentthatmeetsoneofthefollowingconditions,canbeseparatelydistinguishedandhasbeendisposedoforclassifiedasheldforsalebytheCompany:
①Thiscomponentrepresentsanindependentmajorbusinessoraseparatemajorbusinessarea.②Thiscomponentispartofanassociatedplantodisposeofanindependentmajorbusinessoraseparatemajorbusinessarea.③Thiscomponentisasubsidiarycompanyacquiredspecificallyforresale.
Fortheaccountingtreatmentmethodsforterminationofoperations,pleaserefertotherelevantdescriptionsinNote3,
12“Assetsheldforsaleanddisposalgroup".
(2)HedgeaccountingInordertoavoidsomerisks,theCompanyhedgessomefinancialinstrumentsashedginginstruments.Forthehedgesmeetingthespecifiedconditions,theCompanyadoptsthehedgeaccountingmethodfortreatment.ThehedgingoftheCompanyisfairvaluehedging.Atthebeginningofhedging,theCompanyformallydesignateshedginginstrumentsandhedgeditems,andprepareswrittendocumentsonhedgingrelationshipandriskmanagementstrategyandriskmanagementobjectivesoftheCompanyengagedinhedging.Inaddition,theCompanywillcontinuouslyevaluatetheeffectivenessofhedgingatthebeginningandafterthehedging.
FairvaluehedgingIfahedginginstrumentisdesignatedasafairvaluehedgeandmeetstheconditions,theprofitsorlossesarisingtherefromshallbeincludedintothecurrentprofitsandlosses.Ifthehedginginstrumenthedgesthenon-tradingequityinstrumentinvestment(oritscomponents)thatismeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,thegainsandlossesgeneratedbythehedginginstrumentareincludedinothercomprehensiveincome.Theprofitorlossofthehedgeditemduetothehedgedriskexposureshallbeincludedintothecurrentprofitsandlosses,andthebookvalueofthehedgeditemshallbeadjustedatthesametime.Ifthehedgeditemismeasuredatfairvalue,thegainorlossofthehedgeditemduetothehedgedriskdoesnotneedtoadjustthebookvalueofthehedgeditem,andtherelevantgainsandlossesareincludedintothecurrentprofitsandlossesorothercomprehensiveincome.
WhentheCompanycancelsthedesignationofthehedgingrelationship,thehedginginstrumenthasexpiredorbeensold,thecontracthasbeenterminatedorexercised,ornolongermeetstheconditionsfortheapplicationofhedgeaccounting,theapplicationofhedgeaccountingshallbeterminated.
31.Significantaccountingjudgmentsandestimates
Intheprocessofapplyingaccountingpolicies,duetotheinherentuncertaintyofbusinessactivities,theCompanyneedstojudge,estimateandassumethebookvalueofstatementitemsthatcannotbeaccuratelymeasured.Thesejudgments,estimatesandassumptionsarebasedontheCompany'smanagement'spasthistoricalexperienceandotherrelevantfactors.Thesejudgments,estimatesandassumptionswillaffectthereportedamountsofincome,expenses,assetsandliabilitiesandthedisclosureofcontingentliabilitiesatthebalancesheetdate.However,theactualresultscausedbytheuncertaintyoftheseestimatesmaybedifferentfromthecurrentestimatesoftheCompany'smanagement,resultinginasignificantadjustmenttothecarryingamountoftheassetsorliabilitiesaffectedinthefuture.
TheCompanyreviewstheaforesaidjudgments,estimatesandassumptionsonaregularbasisonthebasisofgoingconcern.Ifthechangeofaccountingestimatesonlyaffectsthecurrentperiodofchange,thenumberofimpactsshallberecognizedinthecurrentperiodofchange.Ifthechangeaffectsboththecurrentandfutureperiods,thenumberofimpactswillbeconfirmedinthecurrentandfutureperiodsofthechange.
Onthebalancesheetdate,theCompanyneedstojudge,estimateandassumetheamountoffinancialstatementitemsinthefollowingimportantareas:
1.Impairmentoffinancialassets
TheCompanyusestheexpectedcreditlossmodeltoevaluatetheimpairmentoffinancialinstruments.Theapplicationoftheexpectedcreditlossmodelrequiressignificantjudgmentandestimation,andallreasonableandbasisinformation,includingforward-lookinginformation,shallbeconsidered.Inmakingthesejudgmentsandestimates,theCompanydeducestheexpectedchangesinthedebtor'screditriskbasedonhistoricaldataandcombinedwitheconomicpolicies,macroeconomicindicators,industryrisks,externalmarketenvironment,technologicalenvironment,changesincustomerconditionsandotherfactors.
2.Inventoryfallingpricereserves
Accordingtotheinventoryaccountingpolicy,theCompanymeasuresaccordingtothelowerofcostandnetrealizablevalue.Fortheinventorywhosecostishigherthannetrealizablevalueandwhichisobsoleteandunsalable,theCompanymakesprovisionforinventoryfallingprice.Impairmentofinventoriestonetrealizablevalueisbasedontheevaluationofthemarketabilityofinventoriesandtheirnetrealizablevalue.Theappraisalofimpairmentofinventoriesrequiresthemanagementtomakejudgmentandestimationonthebasisofobtainingconclusiveevidenceandconsideringfactorssuchasthepurposeofholdinginventoriesandtheinfluenceofeventsafterthebalancesheetdate.Thedifferencebetweentheactualresultandtheoriginalestimatewillaffectthebookvalueofinventoryandtheaccrualorreversalofinventorydepreciationreserveduringtheperiodwhentheestimateischanged.
3.Provisionforimpairmentoflong-termassets
Onthebalancesheetdate,theCompanyjudgeswhethertherearesignsofpossibleimpairmentfornon-currentassetsotherthanfinancialassets.Forintangibleassetswithuncertainservicelife,inadditiontotheannualimpairmenttest,theimpairmenttestisalsocarriedoutwhentherearesignsofimpairment.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereareindicationsthattheirbookamountsarenotrecoverable.
Whenthebookvalueofanassetorassetgroupishigherthantherecoverableamount,thatis,thehigherofthenetamountofthefairvalueminusthedisposalexpensesandthepresentvalueoftheestimatedfuturecashflow,itindicatesthatanimpairmenthasoccurred
Thenetamountofthefairvaluelessthedisposalexpensesshallbedeterminedbyreferringtothesalesagreementpriceorobservablemarketpriceofsimilarassetsinfairtransactions,anddeductingtheincrementalcostdirectlyattributabletothedisposalofsuchassets.
Whenestimatingthepresentvalueoffuturecashflow,itisnecessarytomakeasignificantjudgmentontheoutput,salesprice,relatedoperatingcostsandthediscountrateusedinthecalculationofthepresentvalueoftheasset(orassetgroup).Inestimatingtherecoverableamount,theCompanywilluseallrelevantinformationavailable,includingforecastsofproduction,sellingpriceandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
TheCompanyshalltestwhethergoodwillisimpairedatleasteveryyear.Thisrequiresanestimateofthepresentvalueofthefuturecashflowsoftheassetgrouporportfolioofassetgroupstowhichgoodwillhasbeenallocated.Whenpredictingthepresentvalueoffuturecashflow,theCompanyneedstopredictthecashflowgeneratedbythefutureassetgrouporassetgroupportfolio,andatthesametime,selecttheappropriatediscountratetodeterminethepresentvalueoffuturecashflow.
4.Depreciationandamortization
Afterconsideringtheresidualvalueofinvestmentrealestate,fixedassetsandintangibleassets,theCompanywillaccruedepreciationandamortizationonastraight-linebasisduringtheirservicelives.TheCompanyreviewstheserviceliferegularlytodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonthepastexperienceofsimilarassetsandinportfoliowiththeexpectedtechnologicalupdates.Ifthereisasignificantchangeinpreviousestimates,thedepreciationandamortizationchargeswillbeadjustedinthefuture.
5.Deferredincometaxassets
Totheextentthatthereislikelytobesufficienttaxableprofitstooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousealargenumberofjudgmentstoestimatethetimeandamountoffuturetaxableprofits,combinedwithtaxplanningstrategies,todeterminetheamountofdeferredincometaxassetstoberecognized.
6.Incometax
InthenormalbusinessactivitiesoftheCompany,therearecertainuncertaintiesinthefinaltaxtreatmentandcalculationofsometransactions.Whethersomeitemscanbepaidbeforetaxrequirestheapprovalofthetaxauthorities.Ifthereisadifferencebetweenthefinaldeterminationresultofthesetaxmattersandtheamountinitiallyestimated,thedifferencewillhaveanimpactonthecurrentincometaxanddeferredincometaxduringthefinaldeterminationperiod.
7.Accruedliabilities
Accordingtothetermsofthecontract,existingknowledgeandhistoricalexperience,theCompanyestimatesandmakescorrespondingprovisionforproductqualityassurance,estimatedcontractlosses,liquidateddamagesfordelayeddelivery,etc.IntheeventthatsuchcontingencieshaveformedacurrentobligationandtheperformanceofthecurrentobligationsislikelytoresultinoutflowofeconomicbenefitsfromtheCompany,theCompanyrecognizesthecontingenciesasestimatedliabilitiesbasedonthebestestimateoftheexpenditurerequiredtoperformtherelevantcurrentobligations.Therecognitionandmeasurementoftheestimatedliabilitiesdependtoalargeextentonthejudgmentofthemanagement.Intheprocessofjudgment,theCompanyneedstoevaluatetherisks,uncertainties,timevalueofmoneyandotherfactorsrelatedtothesecontingencies.
Amongthem,theCompanywillmakeanestimatedliabilityfortheafter-salesqualitymaintenancecommitmentsprovidedtocustomersforthesale,maintenanceandrenovationofthegoodssold.TheCompany'srecentmaintenance
experiencedatahavebeentakenintoaccountwhenestimatingliabilities,buttherecentmaintenanceexperiencemaynotreflectthefuturemaintenancesituation.Anyincreaseordecreaseinthisprovisionmayaffecttheprofitandlossinthefutureyears.
8.FairvaluemeasurementCertainassetsandliabilitiesoftheCompanyaremeasuredatfairvalueinthefinancialstatements.Whenestimatingthefairvalueofanassetorliability,theCompanyadoptstheavailableobservablemarketdataavailable.Ifthefirstlevelinputvaluecannotbeobtained,theCompanywillemployaqualifiedthird-partyappraisertoperformtheappraisal.TheCompanyworkscloselywithqualifiedexternalappraiserstodeterminetheappropriatevaluationtechniquesandinputstotherelevantmodelsIV.Taxes
1.MainTaxesandTaxRates
Types
| Types | TaxBasis | TaxRate |
| ValueAddedTax | Afterdeductingtheallowableamountofinputtaxdeductedinthecurrentperiod,thedifferencebetweenthesalesofgoods,taxableservicesandtaxableservicesincomecalculatedinaccordancewiththeprovisionsoftheTaxLawisthetaxablevalue-addedtax. | 3%、5%、6%、9%、10%、13% |
| UrbanMaintenance&ConstructionTax | Accordingtotheactualvalue-addedtax | 5%、7% |
| Extrachargesofeducationfunds | Accordingtovalueaddedtaxandconsumptiontaxonthebasisofactualpayment | 3% |
| LocalExtraChargesofEducationFunds | Accordingtovalueaddedtaxandconsumptiontaxonthebasisofactualpayment | 2% |
| CorporateTaxes | Accordingtotaxableincome | 15%、17%、25% |
| PropertyTax | Accordingto70%oforiginalvalueoftherealestate(orrentalincome)asthetaxbase;accordingtotheoriginalvalueoftherealestatededucted30%atatime. | 1.2%、12% |
ThecompanyconductsVATtaxablesalesorimportsgoods.AccordingtotheannouncementissuedbyMinistryofFinance,StateAdministrationofTaxationandChinaCustomaboutthepolicyrelatingtodeepeningVATreform(AnnouncementbyMinistryofFinance,StateAdministrationofTaxationandChinaCustom(2018)No.39),from1stApril2019onwards,theapplicableratesareadjustedto13%/9%.Meanwhile,thecompanycandeductVATbyadditionaldeductiblerateof10%from1stApril2019to31stDecember2021becauseofitsbusinessnatureasserviceprovider.Representationontaxpayersofdifferententerpriseincometaxrates:
| TaxPayers | IncomeTaxRate |
| Jingliang(Singapore)InternationalTradeCo.,Ltd. | 17% |
| BeijingGuchuanBreadFoodCo.,Ltd. | 15% |
2.Importantpreferentialtaxpoliciesandbasis
HangzhouLinanLittleAngelFoodCo.,Ltd.,a4thtiersubsidiarycompanyoftheCompany,isawelfareenterprise.SinceMay2016,ithasenjoyedthepreferentialVATpolicyofimmediaterefunduponpaymentinPreferentialValue-AddedTaxPoliciesforPromotingtheEmploymentofDisabledPersons(CaiShui[2016]No.52).InaccordancewiththerelevantprovisionsofMinistryofFinanceandStateAdministrationofTaxation“NoticeonPreferentialEnterpriseIncomeTaxPoliciesforEmploymentofPersonswithDisabilities”(CaiShui[2009]No.70),HangzhouLinanLittleAngelFoodCo.,Ltd.,a4thtiersubsidiarycompanyoftheCompany:Whereanenterpriseemployspersonswithdisabilities,onthebasisofdeductionaccordingtothewagespaidtothedisabledworkers,itmaydeducttheamountoftaxableincomeaccordingto100%ofthewagespaidtothedisabledworkers.AccordingtotheannouncementofZhejiangProvincialTaxBureau(No.8,2014),HangzhouLinanLittleAngelFoodCo.,Ltd.,a4thsubsidiarycompanyoftheCompany,canenjoythepreferentialpolicyofreducingtheurbanlandusetaxbyanannualquotaof2,000yuanperpersonfortheaveragenumberofactualresettlement,andthemaximumamountofreductionistheurbanlandusetaxpayablebytheunitinthecurrentyear.
LinqingLittlePrinceFoodCo.,Ltd.,afourth-levelsubsidiaryofthecompany,shallbesubjectto50%ofthesalesrevenueonthebasisofthestamptaxpayableintheindustrialprocurementlinkandsaleslinkinthepurchaseandsalecontractofindustrialenterprisesaccordingtotheannountmentNo.10,2018issuedbyShandongProvincialTaxBureau.Thebaseofstampdutypayablein2020shallbecalculatedaccordingto50%ofthesalesrevenue.
Company’slevel4subsidiary-LiaoningXiaowangziFoodLimited,accordingtotheSupplementaryAnnouncementonLandUseTaxissuedbyMinistryofFinanceandStateAdministrationofTaxation(89)GSDZNo.140Clause13statesthatpubliclandsuchasmunicipalstreet,square,publicgreenetc.canbeexemptedfromlandusetax,whencomputinglandusetax,theareausedinthecomputationistotalarealesstheareaforafforestandstreet.
Jingliang(Singapore)InternationalTradeCo.,Ltd.,a3rdtiersubsidiaryoftheCompany,leviestaxesontheprincipleofterritoriality.Thecompanyistaxedontheterritorialityprinciple.AccordingtoSingapore'spreferentialtaxpolicy,thecompanyenjoystaxexemptionplanisasfollows:forthefirstSGD10,000oftaxableincomeamountthetaxableincomeamountshallbereducedby75%;fortheportionbetweenSGD$10,001andSGD$200,000,thetaxableincomeamountshallbereducedby50%;FortheportionexceedingSGD$200,000,thetaxableincomeamountshallnotbereduced.Thecompanyshallpayincometaxattherateof17%onthetaxableincomeamountafterexemption.
BeijingGuchuanBread&FoodCo.,Ltd.,a3rdtiersubsidiaryoftheCompany,isahigh-techenterprise.OnNovember30,2018,itobtainedthecertificateofhigh-techenterpriseandthecertificatenumberGR201811007245.Itisvalidforthreeyears.Itenjoysthepreferentialtaxpolicyofpayingenterpriseincometaxatthe15%taxrateaccordingtotherelevantprovisionsofboth“LawofthePeople'sRepublicofChinaonTaxCollectionandAdministration”and“RulesfortheImplementationoftheTaxCollectionandAdministrationLawofthePeople'sRepublicofChina”.
Thecompanylevel4subsidiaryJingliang(Hebei)OilIndustryCo.,Ltd.,accordingtothefinancialdepartmentdocuments,localtaxationbureauinhebeiprovince,hebeiprovincedocumentjicaishui[2019]no.56"aboutpartsreservecommodityannouncementconcerningthetaxpolicy,accountingbooksshallbeexemptfromstampdutyforfunds,to
undertakebusinessbookstandintheprocessofbuyingandsellingcontractcommodityreservesshallbeexemptfromstampduty,otherpartiesinthecontractshouldpaythestampdutyshallalsobesubjecttoduty-paymentaccordingtotheparties.Propertytaxandlandusetaxofcitiesandtownsshallbeexemptedfromthepropertytaxandlandusetaxofcitiesandtownsthatundertakethebusinessofcommodityreservefortheirownuse.ThenoticewillbeexecutedonJanuary1,2019andwillterminateon31
stDecember.,2021.Jingliang(Hebei)OilIndustryCo.,Ltd.,a4thsubsidiarycompanyoftheCompany,exemptsthesaleofediblevegetableoilstoredbythegovernmentfromVATaccordingto“NoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheLevyandExemptionofValueAddedTaxforFoodEnterprises”（CaiShui[1999]No.198）Thecompanylevel3subsidiaryBeijingdayweikanggreaseDiaoXiaocenterco.,LTD.,accordingtothenationaltaxadministrationoftheministryoffinance,thenoticeaboutfoodenterprisesexemptedfromVATtaxword(1999),article5,198,responsibleforcollectionandstorageofgrainpurchaseandsaleofstate-ownedgrainenterprisesandbusinessduty-freeitemslistedinthenoticeofotherfoodbusiness,andgovernmentreservesediblevegetableoilsalesenterprises,whichshouldbeexaminedbythecompetenttaxauthoritiesdeemedtax-exemptstatus,notreportedtothecompetenttaxauthoritieswheretheauditdeterminedthatnoexemption,FromJune1,2017toDecember31,1999,thecompanywillexemptediblevegetableoilstoredbythegovernmentfromVAT.Thelevel2subsidiaryofthecompany-JingliangCaofeidianAgriculturalDevelopmentLimited,accordingtothedocumentJTCFDST(2018)No.1539765025415issuedbytaxauthorityofCaofeidianDistrict,Tangshan,affiliatedtoStateAdministrationofTaxation,andalsofollowedtherulesinLawofthePeople'sRepublicofChinaontheAdministrationofTaxCollection,TheImplementationGuidelineofLawofthePeople'sRepublicofChinaontheAdministrationofTaxCollection,thericeunderthebrandofTixiangproducedbyCaofeidiancompanyifexemptedfromVAT.Thelevel2subsidiaryofthecompany-JingliangCaofeidianAgriculturalDevelopmentLimited,accordingtotherulesunderClause27ofCorporateLawanditsImplementationGuidelineClause86,thericeunderthebrandofTixiangproducedbyCaofeidiancompanyifexemptedfromCorporationtax.
Ⅴ.Changesinaccountingpolicies,accountingestimates,andexplanationofcorrectionstopreviouserrors
1.ChangesinaccountingpoliciesOnJuly5,2017,theMinistryofFinanceissuedthe"NoticeontheAmendmentandPrintingofthe‘AccountingStandardsforBusinessEnterprisesNo.14–Income'"(FinanceandAccounting[2017]No.22).BasedontheaccountingstandardrevisionandtherequirementsofthenoticeoftheMinistryofFinance,JingliangHoldingsshallimplementthenewrevenuestandardsasofJanuary1,2020.Accordingtotheconvergenceoftheoldandnewstandards,thecompanyhasimplementedthenewstandardssinceJanuary1,2020.Itonlyadjuststhelistingofrelevantitemsandcorrespondingamountsinthefinancialstatementsatthebeginningoftheyear,anddoesnotadjusttheinformationofcomparableperiods,whichdoesnotinvolveretroactiveadjustmentofthepreviousyearsofthecompany.
2.Changesinaccountingestimates
Thereisnochangeinaccountingestimateduringthereportingperiod.
3.CorrectionofpreviousaccountingerrorsThereisnopreviousaccountingerrorcorrectioninthisreportingperiod.
4.Thefirsttimetoimplementthenewrevenuestandardadjustmentandthefirsttimetoimplementthefinancialstatementsatthebeginningoftheyearrelateditems
ConsolidatedBalanceSheet
MonetaryUnit:RMBYuan
Items
| Items | 31December2019 | 1January2020 | Adjustments |
| CurrentAssets: | |||
| Monetarycapital | 557,168,512.39 | 557,168,512.39 | |
| Transactionalfinancialassets | 161,300,000.00 | 161,300,000.00 | |
| Derivativefinancialassets | 88,792,254.00 | 88,792,254.00 | |
| Notesreceivable | |||
| Accountsreceivable | 80,743,986.81 | 80,743,986.81 | |
| Receivablesfinancing | |||
| Prepayment | 138,379,800.10 | 138,379,800.10 | |
| Otherreceivables | 19,220,097.34 | 19,220,097.34 | |
| Including:Interestreceivable | 3,927,438.90 | 3,927,438.90 | |
| Dividendsreceivable | |||
| Inventory | 1,412,755,661.65 | 1,412,755,661.65 | |
| Contractassets | |||
| Held-for-saleassets | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 560,297,233.13 | 560,297,233.13 | |
| Totalcurrentassets | 3,018,657,545.42 | 3,018,657,545.42 | |
| Non-currentassets: | |||
| Long-termequityinvestment | 198,301,333.79 | 198,301,333.79 | |
| Otherequityinstrumentsinvestment | 20,000,000.00 | 20,000,000.00 | |
| Othernon-currentfinancialassets | |||
| Investmentproperty | 31,781,350.74 | 31,781,350.74 |
Items
| Items | 31December2019 | 1January2020 | Adjustments |
| Fixedassets | 1,210,450,340.22 | 1,210,450,340.22 | |
| Constructioninprocess | 17,876,177.78 | 17,876,177.78 | |
| Intangibleassets | 368,170,434.38 | 368,170,434.38 | |
| Developmentexpenditure | |||
| Goodwill | 191,394,422.51 | 191,394,422.51 | |
| Long-termdeferredexpenses | 21,026,628.97 | 21,026,628.97 | |
| Deferredincometaxassets | 2,603,066.38 | 2,603,066.38 | |
| Othernon-currentassets | 151,005,300.00 | 151,005,300.00 | |
| Totalnon-currentassets | 2,212,609,054.77 | 2,212,609,054.77 | |
| Totalassets | 5,231,266,600.19 | 5,231,266,600.19 | |
| Currentliabilities: | |||
| Short-termborrowings | 1,329,238,701.60 | 1,329,238,701.60 | |
| Accountspayable | 130,568,413.43 | 130,568,413.43 | |
| Accountcollectedinadvance | 481,119,461.41 | 983,521.42 | -480,135,939.99 |
| Contractliabilities | 480,135,939.99 | 480,135,939.99 | |
| Employeepayrollpayable | 25,192,583.58 | 25,192,583.58 | |
| Taxespayable | 47,842,621.41 | 47,842,621.41 | |
| Otherpayables | 96,171,396.23 | 96,171,396.23 | |
| Including:Interestpayable | 24,604,524.69 | 24,604,524.69 | |
| Dividendspayable | 11,013,302.88 | 11,013,302.88 | |
| Totalcurrentliabilities | 2,110,133,177.66 | 2,110,133,177.66 | |
| Non-currentliabilities: | |||
| Long-termborrowings | |||
| Long-termpayabletoemployees | 5,730,662.87 | 5,730,662.87 | |
| Estimatedliabilities | |||
| Deferredincome | 71,518,169.27 | 71,518,169.27 | |
| Deferredincometaxliabilities | 52,788,949.62 | 52,788,949.62 | |
| Othernon-currentliabilities |
Items
| Items | 31December2019 | 1January2020 | Adjustments |
| Totalnon-currentliabilities | 130,037,781.76 | 130,037,781.76 | |
| Totalliabilities | 2,240,170,959.42 | 2,240,170,959.42 | |
| Owners'equity(orShareholders'equity): | |||
| Capitalstock | 685,790,364.00 | 685,790,364.00 | |
| Otherequityinstruments | |||
| Including:Preferredstock | |||
| Perpetualcapitalbonds | |||
| Capitalreserves | 1,595,672,048.19 | 1,595,672,048.19 | |
| Less:treasurystock | |||
| Othercomprehensiveincome | 267,628.14 | 267,628.14 | |
| Specialreserves | |||
| Surplusreserves | 122,122,436.98 | 122,122,436.98 | |
| Undistributedprofit | 2,186,806.56 | 2,186,806.56 | |
| Totalequityattributabletotheparentcompany | 2,406,039,283.87 | 2,406,039,283.87 | |
| Minorityequity | 585,056,356.90 | 585,056,356.90 | |
| Totalowners'equity(orshareholders'equity) | 2,991,095,640.77 | 2,991,095,640.77 | |
| Totalliabilitiesandowners'equity(orshareholders'equity) | 5,231,266,600.19 | 5,231,266,600.19 |
Parentcompanybalancesheet
MonetaryUnit:RMBYuan
| Items | 31December2019 | 1January2020 | Adjustments |
| CurrentAssets: | |||
| Monetarycapital | 5,606,837.37 | 5,606,837.37 | |
| Accountsreceivable | 42,510.00 | 42,510.00 | |
| Prepayment | 532,843.92 | 532,843.92 | |
| Otherreceivables | 12,612,756.48 | 12,612,756.48 | |
| Including:Interestreceivable | |||
| Dividendsreceivable | |||
| Inventory | 4,824,035.45 | 4,824,035.45 | |
| Othercurrentassets | 2,114,765.22 | 2,114,765.22 |
Items
| Items | 31December2019 | 1January2020 | Adjustments |
| Totalcurrentassets | 25,733,748.44 | 25,733,748.44 | |
| Non-currentassets: | |||
| Long-termequityinvestment | 2,377,420,527.10 | 2,377,420,527.10 | |
| Otherequityinstrumentsinvestment | 20,000,000.00 | 20,000,000.00 | |
| Investmentproperty | 5,476,357.73 | 5,476,357.73 | |
| Fixedassets | 3,028,013.69 | 3,028,013.69 | |
| Developmentexpenditure | 94,800.66 | 94,800.66 | |
| Long-termdeferredexpenses | 86,477.92 | 86,477.92 | |
| Totalnon-currentassets | 2,406,106,177.10 | 2,406,106,177.10 | |
| Totalassets | 2,431,839,925.54 | 2,431,839,925.54 | |
| Currentliabilities: | |||
| Short-termborrowings | |||
| Accountspayable | |||
| Accountcollectedinadvance | 38,896.41 | 38,896.41 | |
| Contractliabilities | |||
| Employeepayrollpayable | 480,445.28 | 480,445.28 | |
| Taxespayable | 1,709,752.97 | 1,709,752.97 | |
| Otherpayables | 503,550,996.94 | 503,550,996.94 | |
| Including:Interestpayable | 21,082,795.47 | 21,082,795.47 | |
| Dividendspayable | 3,213,302.88 | 3,213,302.88 | |
| Held-for-saleliabilities | |||
| Non-currentliabilitiesduewithinoneyear | |||
| Othercurrentliabilities | |||
| Totalcurrentliabilities | 505,780,091.60 | 505,780,091.60 | |
| Non-currentliabilities: | |||
| Long-termborrowings | |||
| Deferredincome | |||
| Deferredincometaxliabilities | |||
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | |||
| Totalliabilities | 505,780,091.60 | 505,780,091.60 | |
| Owners'equity(orShareholders'equity): | |||
| Capitalstock | 685,790,364.00 | 685,790,364.00 |
Items
| Items | 31December2019 | 1January2020 | Adjustments |
| Capitalreserves | 2,173,387,468.71 | 2,173,387,468.71 | |
| Less:treasurystock | |||
| Surplusreserves | 109,487,064.39 | 109,487,064.39 | |
| Undistributedprofit | -1,042,605,063.16 | -1,042,605,063.16 | |
| Totalowners'equity(orshareholders'equity) | 1,926,059,833.94 | 1,926,059,833.94 | |
| Totalliabilitiesandowners'equity(orshareholders'equity) | 2,431,839,925.54 | 2,431,839,925.54 |
Ⅵ.NotesonItemsinConsolidatedFinancialStatementsNote:The‘beginning’oftheperiodreferstoJanuary1,2020andthe‘end’oftheperiodreferstoDecember31,2020.Thepreviousperiodreferstotheyear2019andthecurrentperiodreferstotheyear2020.
1.Monetaryfunds
(1)Classificationlist
| Items | EndingBalance | BeginningBalance |
| Cash | 16,761.72 | 27,780.31 |
| BankDeposits | 299,235,964.61 | 555,138,729.05 |
| OtherCurrencyFunds | 36,213,443.28 | 2,002,003.03 |
| Total | 335,466,169.61 | 557,168,512.39 |
| Amongthem:thetotalamountofmoneydepositedabroad | 3,153,447.17 | 76,673.88 |
(2)Attheendoftheperiod,thereare1,077,152.20yuanoffreezingandotherrestrictedfunds.
(3)Attheendoftheperiod,thereisnofundsdepositedabroadandthereturnoffundsisrestricted.
2.Transactionalfinancialassets
| Items | EndingBalance | BeginningBalance |
| Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 63,478,071.73 | |
| Amongthem:debtinstrumentinvestment | 63,478,071.73 | |
| Designatedasfinancialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 161,300,000.00 | |
| Amongthem:debtinstrumentinvestment | ||
| equityinstrumentinvestment |
Items
| Items | EndingBalance | BeginningBalance |
| others | 161,300,000.00 | |
| Total | 63,478,071.73 | 161,300,000.00 |
3.DerivativeFinancialAssets
| Items | EndingBalance | BeginningBalance |
| Changesinfairvalueofhedginginstruments | 88,792,254.00 | |
| Total | 88,792,254.00 |
Note:TheCompanyhedgestheinventoryandexpectedtransactionscorrespondingtothevarietiesinvolvedinproduction,operationandtrade,andthehedginginstrumentsarelistedintheitemsinthistable.
4.Notesreceivable
(1)Classificationlist
| Items | EndingBalance | BeginningBalance |
| Bankacceptancebill | 456,565.85 | |
| Commercialacceptancebill | ||
| Total | 456,565.85 |
5.AccountsReceivable（
）Disclosedaccordingtoaging
| Aging | EndingBalance |
| Within1Year(including1year) | 92,064,378.81 |
| Amongthem:Withinthecredit(within3months) | 87,160,593.21 |
| Creditperiodto1year | 4,903,785.60 |
| 1to2years(including2years) | 1,133,267.48 |
| 2to3years(including3years) | 31,789.50 |
| 3to4years(including4years) | 45,270.42 |
| 4to5years(including5years) | 51,420.00 |
| Morethan5years | 401,135.40 |
| Total | 93,727,261.61 |
（2）Presentaccordingtothemethodofprovisionforbaddebt
Type(s)
| Type(s) | EndingBalance | ||||
| BookBalance | BadDebtProvision | BookValue | |||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | ||
| Separateprovisionforbaddebts | 1,325,135.40 | 1.41 | 1,325,135.40 | 100.00 | |
| Portfolioprovisionforbaddebts | 92,402,126.21 | 98.59 | 156,458.61 | 0.17 | 92,245,667.60 |
| Amongthem:agingportfolio | 69,364,375.49 | 74.01 | 156,458.61 | 0.23 | 69,207,916.88 |
| relatedpartiesportfolio | 23,037,750.72 | 24.58 | 23,037,750.72 | ||
| Total | 93,727,261.61 | 一一 | 1,481,594.01 | 一一 | 92,245,667.60 |
（Continued）
| Type(s) | BeginningBalance | ||||
| BookBalance | BadDebtProvision | BookValue | |||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | ||
| Separateprovisionforbaddebts | 1,325,135.40 | 1.61 | 1,325,135.40 | 100.00 | |
| Portfolioprovisionforbaddebts | 80,930,719.37 | 98.39 | 186,732.56 | 0.23 | 80,743,986.81 |
| Amongthem:agingportfolio | 71,459,010.77 | 86.87 | 186,732.56 | 0.26 | 71,272,278.21 |
| relatedpartiesportfolio | 9,471,708.60 | 11.52 | 9,471,708.60 | ||
| Total | 82,255,854.77 | 1,511,867.96 | 80,743,986.81 | ||
A.Separateprovisionforbaddebts
| Name | EndingBalance | |||
| AccountsReceivable | BadDebtProvision | ProvisionRatio | ProvisionReason | |
| BeijingXidanspicytownfoodlimited | 996,000.00 | 996,000.00 | 100.00 | expectedunrecoverable |
| BeijingRongfaLidaGrainandOilTradeCo.,Ltd. | 163,143.00 | 163,143.00 | 100.00 | expectedunrecoverable |
| FujianJingxinIndustrialGroupCo.,Ltd | 151,844.00 | 151,844.00 | 100.00 | expected |
Name
| Name | EndingBalance | |||
| AccountsReceivable | BadDebtProvision | ProvisionRatio | ProvisionReason | |
| unrecoverable | ||||
| BeijingGuotaiPing'anDepartmentStoreCo.,Ltd. | 10,862.90 | 10,862.90 | 100.00 | expectedunrecoverable |
| BeijingGuotaiPing'anTianzhuCommercialDevelopmentCo.,Ltd. | 1,809.60 | 1,809.60 | 100.00 | expectedunrecoverable |
| Carrefour(Shanghai)SupplyChainManagementCo.,Ltd.TianjinBranch | 875.90 | 875.90 | 100.00 | expectedunrecoverable |
| BeijingShunyiLonghuaShoppingCenter | 600.00 | 600.00 | 100.00 | expectedunrecoverable |
| Total | 1,325,135.40 | 1,325,135.40 | －－ | －－ |
B.Portfolioprovisionforbaddebts
1.Portfolioprovision:agingportfolio
| Name | EndingBalance | BeginningBalance | ||||
| Accountsreceivable | BadDebtProvision | ProvisionRatio | Accountsreceivable | BadDebtProvision | ProvisionRatio | |
| Within1Year(including1year) | 69,026,628.09 | 7,466.13 | 71,034,407.08 | 53,078.50 | ||
| Amongthem:Withinthecredit(within3months) | 68,653,321.59 | 0 | 68,380,481.82 | 0 | ||
| Creditperiodto1year | 373,306.50 | 7,466.13 | 2 | 2,653,925.26 | 53,078.50 | 2 |
| 1to2years(including2years) | 137,267.48 | 6,863.37 | 5 | 65,951.22 | 3,297.57 | 5 |
| 2to3years(including3years) | 31,789.50 | 6,357.90 | 20 | 235,232.47 | 47,046.49 | 20 |
| 3to4years(including4years) | 45,270.42 | 22,635.21 | 50 | 51,420.00 | 25,710.00 | 50 |
| 4to5years(including5years) | 51,420.00 | 41,136.00 | 80 | 72,000.00 | 57,600.00 | 80 |
| Morethan5years | 72,000.00 | 72,000.00 | 100 | 100 | ||
Name
| Name | EndingBalance | BeginningBalance | ||||
| Accountsreceivable | BadDebtProvision | ProvisionRatio | Accountsreceivable | BadDebtProvision | ProvisionRatio | |
| Total | 69,364,375.49 | 156,458.61 | 71,459,010.77 | 186,732.56 | ||
2.Portfolioprovision:relatedpartiesportfolio
| Name | EndingBalance | BeginningBalance | ||||
| Accountsreceivable | BadDebtProvision | ProvisionRatio | Accountsreceivable | BadDebtProvision | ProvisionRatio | |
| Relatedpartiesportfolio | 23,037,750.72 | 9,471,708.60 | ||||
| Total | 23,037,750.72 | 9,471,708.60 | ||||
（3）detailsofbaddebtprovision
| Items | BeginningBalance | Theamountchangedfortheperiod | EndingBalance | |||
| Addition | Withdrawalorreversal | Write-off | Otherchanges | |||
| Creditimpairmentloss | 1,511,867.96 | 30,273.95 | 1,481,594.01 | |||
| Total | 1,511,867.96 | 30,273.95 | 1,481,594.01 | |||
（4）AccountsreceivableactuallywrittenoffinthecurrentperiodThecompanyhasnoaccountsreceivablewrittenoffduringthereportingperiod.（
）AccountsReceivableoftheTop5BalancesCollectedbyDebtorsattheEndofthePeriod
| Debtors | Accountsreceivable | Ratiooftotalaccountsreceivable(%) | Aging | Whetherrelated | BadDebtProvision |
| TangshanCaofeidianDistrictFinanceBureau | 18,207,344.00 | 19.43 | Within3months | No | |
| BeijingershangWangzhiheFoodCo.,Ltd | 8,584,555.70 | 9.16 | Within3months | Yes | |
| XilinGolLeaguehongjingyuanOilCo.,Ltd | 7,811,500.00 | 8.33 | Within3months | No | |
| ShenzhenGreenTeaTradingCo.,Ltd | 7,312,953.42 | 7.80 | Within3months | No |
Debtors
| Debtors | Accountsreceivable | Ratiooftotalaccountsreceivable(%) | Aging | Whetherrelated | BadDebtProvision |
| TianjindongyushunOilCo.,Ltd | 3,182,915.70 | 3.40 | Within3months | No | |
| Total | 45,099,268.82 | 48.12 | —— | —— | —— |
6.AdvancedPayment
(1)Advancesarepresentedbyage
| Aging | EndingBalance | BeginningBalance | ||
| Amount | Ratio(%) | Amount | Ratio(%) | |
| Within1year(including1year) | 282,123,364.15 | 99.92 | 138,172,859.10 | 99.85 |
| 1to2years(including2years) | 88,505.90 | 0.03 | 183,841.00 | 0.13 |
| 2to3years(including3years) | 108,248.00 | 0.04 | 23,100.00 | 0.02 |
| Morethan3years | 23,100.00 | 0.01 | ||
| Total | 282,343,218.05 | 100.00 | 138,379,800.10 | 100.00 |
(2)AdvancepaymentofthetopfiveEndingBalancesbyprepaidobjects
| DebtorName | EndingBalance | Ratioofthetotalendingbalanceofprepayments(%) |
| HongKongYuhengIndustrialCo.,Ltd | 211,019,021.84 | 74.74 |
| TianjinLidagrainandOilCo.,Ltd | 10,606,650.00 | 3.76 |
| Bangji(Taixing)GrainandOilCo.,Ltd | 9,723,430.25 | 3.44 |
| LouisDreyfus(Tianjin)InternationalTradeCo.,Ltd | 7,746,347.39 | 2.74 |
| SinograinOilsCorporation | 7,544,866.13 | 2.67 |
| Total | 246,640,315.61 | 87.35 |
7.OtherReceivables
1.Overview
(1)Classification
| Item(s) | EndingBalance | BeginningBalance |
| InterestReceivable | 3,927,438.90 |
Item(s)
| Item(s) | EndingBalance | BeginningBalance |
| DividendReceivable | ||
| OtherReceivables | 541,905,656.97 | 15,292,658.44 |
| Total | 541,905,656.97 | 19,220,097.34 |
2.InterestReceivable
(1)Interestreceivableclassification
| Item(s) | EndingBalance | BeginningBalance |
| Timedepositinterest | 3,927,438.90 | |
| Loanbymandate | ||
| Bondinvestment | ||
| Total | 3,927,438.90 |
3.OtherReceivables
A.Disclosedaccordingtoaging
| Aging | EndingBalance |
| Within1Year(including1year) | 540,101,070.14 |
| Amongthem:Withinthecredit(within3months) | 528,131,439.50 |
| Creditperiodto1year | 11,969,630.64 |
| 1to2years(including2years) | 808,105.13 |
| 2to3years(including3years) | 332,945.29 |
| 3to4years(including4years) | 370,000.00 |
| 4to5years(including5years) | |
| Morethan5years | 350,000.00 |
| Total | 541,962,120.56 |
B.Classificationofotherreceivablesbynatureoffunds
| NatureofFunds | BookBalanceatEndofPeriod | BookBalanceatBeginningofYear |
| GuaranteedDepositandDeposit | 535,330,041.21 | 5,772,303.92 |
| IntercourseFundsofUnits | 5,472,834.58 | 5,736,772.70 |
| TaxRefundReceivables | 302,433.21 | 2,366,765.34 |
EmployeeReceivables
| EmployeeReceivables | 532,115.87 | 600,224.88 |
| PersonalIntercourseFunds | 50,000.00 | 833,000.00 |
| PettyCash | 114,271.85 | |
| SubstituteAdvance | 26,638.00 | |
| Others | 274,695.69 | 80,581.58 |
| Total | 541,962,120.56 | 15,530,558.27 |
C.Detailsaboutallowanceforbaddebt
| Provisionforbaddebt | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossforthewholeperiod(nocreditimpairment) | Expectedcreditlossforthewholeperiod(withcreditimpairment) | ||
| Amounton1stJanuary2020 | 187,899.83 | 50,000.00 | 237,899.83 | |
| Carryingamounton1stJanuary2020thatinthisperiod: | ||||
| ——GetintoStage2 | ||||
| ——GetintoStage3 | ||||
| ——GetbacktoStage2 | ||||
| ——GetbacktoStage1 | ||||
| Provisionfortheperiod | ||||
| Reversefortheperiod | 181,436.24 | 181,436.24 | ||
| Transferfortheperiod | ||||
| Writeofffortheperiod | ||||
| Otherchanges | ||||
| Amounton31stDecember2020 | 6,463.59 | 50,000.00 | 56,463.59 |
D.Detailsofbaddebtprovision
| Type | Carryingamountatthebeginning | Amountchangesfortheperiod | Carryingamountattheend | |||
| Addition | Withdrawalorreversal | Write-off | Otherchanges | |||
Creditimpairmentloss
| Creditimpairmentloss | 237,899.83 | 181,436.24 | 56,463.59 | ||
| Total | 237,899.83 | 181,436.24 | 56,463.59 |
E.OtherreceivablesactuallywrittenoffinthecurrentperiodThecompanyhasnootherreceivablesactuallywrittenoffduringthereportingperiod.F.Otherreceivablesaccordingtotopfiveofbalanceatendofperiodcollectedbydebtors
| NameofOrganization | NatureofFunds | BalanceatEndofPeriod | Aging | Proportioninoverallendingbalanceofotherreceivables(%) | Endingbalanceofbaddebtreserves |
| HaitongFuturesCo.,Ltd | Futuresmargin | 326,955,685.60 | Within3months | 60.33 | |
| ZhongtianFuturesCo.Ltd | Futuresmargin | 132,505,264.40 | Within3months | 24.45 | |
| CITICFuturesCo.Ltd | Futuresmargin | 39,541,813.80 | Within3months | 7.30 | |
| ZhongzhouFuturesCo.Ltd | Futuresmargin | 17,714,120.00 | Within3months | 3.27 | |
| SDICAnxinFuturesCo.Ltd | Futuresmargin | 10,408,872.80 | Within3months | 1.92 | |
| Total | — | 527,125,756.60 | — | 97.27 |
G.Receivablesrelatedtogovernmentgrants
| Nameofthegrantcompany | Nameofgovernmentgrants | Carryingamountattheend | Agingattheendoftheperiod | Time,amountandevidenceofexpectedcollection |
| TaxBureauofLinanDIatrict,Hangzhou,ZhejiangProvince | RefundofVAT | 302,433.21 | Within3months | AllamountwillbecollectedinJanuary2021,thecompanyalwaysqualifyfortaxrefundpolicyfordisabledperson |
| Total | —— | 302,433.21 | —— | —— |
8.Inventory
(1)InventoryCategory
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | FallingPriceReserves | BookValue | BookBalance | FallingPriceReserves | BookValue | |
| RawMaterials | 303,448,302.51 | 303,448,302.51 | 186,791,440.87 | 186,791,440.87 | ||
Items
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | FallingPriceReserves | BookValue | BookBalance | FallingPriceReserves | BookValue | |
| RevolvingMaterials | 5,520,559.22 | 5,520,559.22 | 6,155,422.13 | 6,155,422.13 | ||
| Goodsandmaterialsintransit | 36,413,482.38 | 36,413,482.38 | ||||
| Inventorygoods | 622,783,856.56 | 233,790.56 | 622,550,066.00 | 943,448,494.73 | 170,341.46 | 943,278,153.27 |
| Developmentcosts | 2,415,243.42 | 2,415,243.42 | 18,909,838.76 | 18,909,838.76 | ||
| Developingcommodities | 5,315,696.54 | 1,539,741.69 | 3,775,954.85 | 16,497,730.12 | 11,673,694.67 | 4,824,035.45 |
| Commissionprocessing | 2,762,633.88 | 2,762,633.88 | 4,599,271.17 | 4,599,271.17 | ||
| Replacementofoilreserve | 248,197,500.00 | 248,197,500.00 | 248,197,500.00 | 248,197,500.00 | ||
| Total | 1,226,857,274.51 | 1,773,532.25 | 1,225,083,742.26 | 1,424,599,697.78 | 11,844,036.13 | 1,412,755,661.65 |
(2)InventoryFallingPriceReservesandprovisionforimpairmentofcontractperformancecosts
| Items | BalanceatBeginningofYear | IncreasedAmountsintheCurrentPeriod | DecreasedAmountsintheCurrentPeriod | BalanceatEndofPeriod | ||
| Accrual | Others | RecoverorChargeOff | Others | |||
| StockGoods | 170,341.46 | 63,449.10 | 233,790.56 | |||
| DevelopProducts | 11,673,694.67 | 10,133,952.98 | 1,539,741.69 | |||
| Intotal | 11,844,036.13 | 63,449.10 | 10,133,952.98 | 1,773,532.25 | ||
Note:thebasisfortheprovisionofdepreciationisthemarketquotationoftheworldgranarywebsite.Theotherreasonisthatthedevelopmentcommoditiesareadjustedtotheinvestmentrealestate,andthecorrespondingpriceadjustmentisadjustedsynchronously.
(3)StockGoodslistedbymajorproducttype
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | FallingPriceReserves | BookValue | BookBalance | FallingPriceReserves | BookValue | |
Items
| Items | EndingBalance | BeginningBalance | ||||
| BookBalance | FallingPriceReserves | BookValue | BookBalance | FallingPriceReserves | BookValue | |
| Greaseandoils | 594,886,731.71 | 233,790.56 | 594,652,941.15 | 925,286,704.17 | 170,341.46 | 925,116,362.71 |
| Food | 27,880,182.78 | 27,880,182.78 | 18,160,623.35 | 18,160,623.35 | ||
| Others | 16,942.07 | 16,942.07 | 1,167.21 | 1,167.21 | ||
| 合计 | 622,783,856.56 | 233,790.56 | 622,550,066.00 | 943,448,494.73 | 170,341.46 | 943,278,153.27 |
9.OtherCurrentAssets
| Items | BalanceatEndofPeriod | BalanceatBeginningofPeriod |
| FinancialProducts | 280,000,000.00 | 393,198,608.68 |
| Pre-paidTaxesandFees | 16,921,026.50 | 1,369,643.50 |
| PendingDeductVATInputTax | 46,701,271.74 | 69,764,662.41 |
| FairValueChangesofItemsTrappedatHedging | 501,828,380.12 | 95,964,318.54 |
| Intotal | 845,450,678.36 | 560,297,233.13 |
10.Long-termEquityInvestment
| InvestedUnit | BalanceatBeginningofYear | IncreaseorDecreaseintheCurrentPeriod | ||
| AdditionalInvestment | NegativeInvestment | ConfirmedProfitandLossonInvestmentunderEquityLaw | ||
| 1.CooperativeEnterprise | ||||
| CPGroup | 72,816,569.30 | 18,089,839.19 | ||
| Sub-total | 72,816,569.30 | 18,089,839.19 | ||
| 2.JointVenture | ||||
| ChinaGrainReserves(Tianjin)WarehouseLogisticsCo.,Ltd. | 117,636,450.78 | 1,964,865.65 | ||
| JingliangMissMeFoodManagement(Tianjin)Limited | 7,848,313.71 | -512,040.84 | ||
| Sub-total | 125,484,764.49 | 1,452,824.81 | ||
| Total | 198,301,333.79 | 19,542,664.00 | ||
(Continued)
IncreaseorDecreaseintheCurrentPeriod
| IncreaseorDecreaseintheCurrentPeriod | BalanceatEndofPeriod | EndingBalanceofImpairmentReserves | ||||
| Adjustmentofothercomprehensiveincome | Otherchangesinequity | AnnouncetoDistributeCaseDividendsorProfits | AccrualofImpairmentReserves | Others | ||
| -81,510.00 | 90,824,898.49 | |
| -81,510.00 | 90,824,898.49 |
| 119,601,316.43 | ||
| 7,336,272.87 | ||
| 126,937,589.30 | ||
| -81,510.00 | 217,762,487.79 |
11.Otherequityinstrumentsinvestment
| Item | EndingBalance | BeginningBalance |
| Chongqinglongjinbaonetworktechnologyco.LTD | 20,000,000.00 | 20,000,000.00 |
| ChinaNetTechnologyInvestmentCo.,Ltd | ||
| HainanGeneralChamberofCommerce | ||
| Total | 20,000,000.00 | 20,000,000.00 |
12.InvestmentRealEstate
(1)InvestmentRealEstateAdoptingCostMeasurementModel
| Items | Buildings | LandUseRight | ProjectsunderConstruction | Total |
| One.OriginalBookValue | 53,844,801.60 | 53,844,801.60 | ||
| 1.BalanceatBeginningofYear | 42,634,619.63 | 42,634,619.63 | ||
| 2.IncreasedAmountsintheCurrentPeriod | 11,210,181.97 | 11,210,181.97 | ||
| (1)Outsourcing | ||||
| (2)Inventorytransfer | 11,182,033.58 | 11,182,033.58 | ||
| (3)Others | 28,148.39 | 28,148.39 | ||
| 3.DecreasedAmountsintheCurrentPeriod | ||||
| (1)Disposal | ||||
| (2)Othertransferout | ||||
| 4.BalanceatEndofPeriod | 53,844,801.60 | 53,844,801.60 | ||
| Two.AccumulatedImpairmentandAccumulatedAmortization |
Items
| Items | Buildings | LandUseRight | ProjectsunderConstruction | Total |
| 1.BalanceatBeginningofYear | 10,399,425.17 | 10,399,425.17 | ||
| 2.IncreasedAmountsintheCurrentPeriod | 10,297,367.23 | 10,297,367.23 | ||
| (1)AccrualorAmortization | 10,297,367.23 | 10,297,367.23 | ||
| 3.DecreasedAmountsintheCurrentPeriod | ||||
| (1)Disposal | ||||
| (2)Othertransferout | ||||
| 4.BalanceatEndofPeriod | 20,696,792.40 | 20,696,792.40 | ||
| Three.ImpairmentReserves | ||||
| 1.BalanceatBeginningofYear | 453,843.72 | 453,843.72 | ||
| 2.IncreasedAmountsintheCurrentPeriod | 10,133,952.98 | 10,133,952.98 | ||
| (1)Accrual | ||||
| (2)Inventorytransfer | 10,133,952.98 | 10,133,952.98 | ||
| 3.DecreasedAmountsintheCurrentPeriod | ||||
| (1)Disposal | ||||
| (2)Othertransferout | ||||
| 4.BalanceatEndofPeriod | 10,587,796.70 | 10,587,796.70 | ||
| Four.BookValue | ||||
| 1.BookValueatEndofPeriod | 22,560,212.50 | 22,560,212.50 | ||
| 2.BookValueatBeginningofYear | 31,781,350.74 | 31,781,350.74 |
13.FixedAssets
1.Overview
(1)Classification
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| FixedAssets | 1,131,143,854.07 | 1,210,450,340.22 |
| DisposalofFixedAssets | ||
| Intotal | 1,131,143,854.07 | 1,210,450,340.22 |
2.FixedAssets
(1)FixedAssetsSituation
| Items | Buildings | MachineryEquipment | TransportationEquipment | ElectronicEquipment | OfficeEquipment | Others | Total |
| One.Original |
Items
| Items | Buildings | MachineryEquipment | TransportationEquipment | ElectronicEquipment | OfficeEquipment | Others | Total |
| BookValue | |||||||
| 1.BalanceatBeginningofYear | 1,072,321,981.43 | 378,411,230.58 | 19,545,084.11 | 14,918,304.67 | 2,158,897.13 | 371,548,039.27 | 1,858,903,537.19 |
| 2.IncreasedAmountsintheCurrentPeriod | 5,098,428.92 | 10,359,999.01 | 1,364,968.24 | 4,153,708.99 | 3,960.40 | 5,540,740.14 | 26,521,805.70 |
| (1)Purchase | 184,850.61 | 7,108,991.99 | 1,364,968.24 | 1,762,305.98 | 3,960.40 | 4,505,383.72 | 14,930,460.94 |
| (2)Roll-inofProjectunderConstruction | 4,913,578.31 | 3,251,007.02 | 1,757,656.71 | 1,035,356.42 | 10,957,598.46 | ||
| (3)Others | 633,746.30 | 633,746.30 | |||||
| 3.DecreasedAmountsintheCurrentPeriod | 268,379.92 | 12,841,218.01 | 1,426,401.32 | 467,491.68 | 473,137.55 | 15,476,628.48 | |
| (1)DisposalorScrap | 268,379.92 | 12,841,218.01 | 1,426,401.32 | 467,491.68 | 473,137.55 | 15,476,628.48 | |
| 4.BalanceatEndofPeriod | 1,077,152,030.43 | 375,930,011.58 | 19,483,651.03 | 18,604,521.98 | 2,162,857.53 | 376,615,641.86 | 1,869,948,714.41 |
| Two.AccumulatedImpairment | |||||||
| 1.BalanceatBeginningofYear | 299,179,918.09 | 153,988,342.69 | 13,256,657.54 | 11,374,349.35 | 1,442,278.04 | 161,541,068.22 | 640,782,613.93 |
| 2.IncreasedAmountsintheCurrentPeriod | 39,659,825.80 | 34,581,697.75 | 1,276,693.37 | 1,493,660.77 | 112,296.33 | 23,716,323.60 | 100,840,497.62 |
| (1)Accrual | 39,659,825.80 | 34,581,697.75 | 1,276,693.37 | 1,493,660.77 | 112,296.33 | 23,716,323.60 | 100,840,497.62 |
| 3.DecreasedAmountsintheCurrentPeriod | 222,503.58 | 7,920,605.07 | 1,353,588.47 | 456,806.03 | 449,790.54 | 10,403,293.69 | |
| (1)DisposalorScrap | 222,503.58 | 7,920,605.07 | 1,353,588.47 | 456,806.03 | 449,790.54 | 10,403,293.69 | |
| 4.BalanceatEndofPeriod | 338,617,240.31 | 180,649,435.37 | 13,179,762.44 | 12,411,204.09 | 1,554,574.37 | 184,807,601.28 | 731,219,817.86 |
Items
| Items | Buildings | MachineryEquipment | TransportationEquipment | ElectronicEquipment | OfficeEquipment | Others | Total |
| Three.ImpairmentReserves | |||||||
| 1.BalanceatBeginningofYear | 7,499,295.92 | 171,287.12 | 7,670,583.04 | ||||
| 2.IncreasedAmountsintheCurrentPeriod | |||||||
| (1)Accrual | |||||||
| 3.DecreasedAmountsintheCurrentPeriod | 85,540.56 | 85,540.56 | |||||
| (1)DisposalorScrap | 85,540.56 | 85,540.56 | |||||
| 4.BalanceatEndofPeriod | 7,499,295.92 | 85,746.56 | 7,585,042.48 | ||||
| Four.BookValue | |||||||
| 1.BookValueatEndofPeriod | 731,035,494.20 | 195,194,829.65 | 6,303,888.59 | 6,193,317.89 | 608,283.16 | 191,808,040.58 | 1,131,143,854.07 |
| 2.BookValueatBeginningofYear | 765,642,767.42 | 224,251,600.77 | 6,288,426.57 | 3,543,955.32 | 716,619.09 | 210,006,971.05 | 1,210,450,340.22 |
(2)Fixedassetswithoutpropertyrightcertificate
| Project | BookValue | Reasonsforfailuretocompletecertificateoftitle |
| Buildings | 2,892,386.06 | Notitlecertificateforauxiliaryassets |
14.ProjectunderConstruction
1.Overview
(1)Classification
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| ProjectunderConstruction | 28,458,413.67 | 17,876,177.78 |
| Engineeringmaterials |
Items
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Total | 28,458,413.67 | 17,876,177.78 |
2.ProjectunderConstruction
(1)SituationofProjectunderConstruction
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear | ||||
| BookBalance | ImpairmentReserves | BookValue | BookBalance | ImpairmentReserves | BookValue | |
| 1.roastedpotatosupportingautomationlineproject | 6,986,820.05 | 6,986,820.05 | 459,218.39 | 459,218.39 | ||
| 2.WalnutcakeproductionlineofNo.2plant | 4,780,643.33 | 4,780,643.33 | 4,457,068.09 | 4,457,068.09 | ||
| 3.slopetreatmentprojectofNo.3plant | 3,565,377.15 | 3,565,377.15 | 1,887,688.90 | 1,887,688.90 | ||
| 4.addtwo4DCornFlakeproductionlines | 3,207,668.25 | 3,207,668.25 | ||||
| 5.32,400tonsofoiltankandterminaloilpipelineproject | 2,869,993.38 | 2,869,993.38 | ||||
| 6.2600bphprojectofpackagingoil10Lproductionline | 2,809,734.52 | 2,809,734.52 | ||||
| 7.NewproductionlineofsmallfriedcompoundpotatochipsinleisureNo.1Factory | 1,784,537.82 | 1,784,537.82 | ||||
| 8.Friedpotatochipsautomationtransformationprojectandothers | 2,453,639.17 | 2,453,639.17 | 11,072,202.40 | 11,072,202.40 | ||
| Intotal | 28,458,413.67 | 28,458,413.67 | 17,876,177.78 | 17,876,177.78 | ||
(2)ChangeConditionofImportantEngineeringProjectsunderConstructionintheCurrentPeriod
| ProjectName | BalanceatBeginningofYear | IncreasedAmountsintheCurrentPeriod | Roll-inFixedAssetsAmountintheCurrentPeriod | OtherDecreasedAmountsintheCurrentPeriod | BalanceatEndofPeriod |
| WalnutcakeproductionlineofNo.2factory | 4,457,068.09 | 323,575.24 | 4,780,643.33 | ||
| SlopetreatmentprojectofNo.3Factory | 1,887,688.90 | 1,677,688.25 | 3,565,377.15 |
ProjectName
| ProjectName | BalanceatBeginningofYear | IncreasedAmountsintheCurrentPeriod | Roll-inFixedAssetsAmountintheCurrentPeriod | OtherDecreasedAmountsintheCurrentPeriod | BalanceatEndofPeriod |
| Twonew4DCornFlakeproductionlines | 3,207,668.25 | 3,207,668.25 | |||
| 32400tonoiltankandwharfoilpipelineproject | 2,869,993.38 | 2,869,993.38 | |||
| 2600bphprojectofpackagingoil10Lproductionline | 2,809,734.52 | 2,809,734.52 | |||
| ProductionlineofbakedpotatoworkshopinNo.2factory | 848,372.58 | 848,372.58 | |||
| 4DstackedCornFlakeproductionline | 68,000.00 | 68,000.00 | |||
| ExtrusionbakingCornFlakeproductionline | 50,000.00 | 50,000.00 | |||
| 7nonfriedpotatochipsproductionlines | 3,800,000.00 | 3,800,000.00 | |||
| Newbarequipmentinvestmentproject | 1,717,083.99 | 131,287.03 | 1,848,371.02 | ||
| Renovationprojectofmaishaopackagingautomationandblastingmachine | 217,699.11 | 9,251.52 | 226,950.63 | ||
| Flameretardantcolorsteelplateforvanroom | 2,764,384.39 | 71,866.04 | 2,836,250.43 | ||
| FirefightingfacilitiesinVanroom | 974,577.28 | 1,102,750.60 | 2,077,327.88 | ||
| Total | 16,784,874.34 | 12,203,814.83 | 7,728,321.91 | 3,800,000.00 | 17,460,367.26 |
Note:theotherprojectsinprogresswithadecreaseof3.8millionyuaninthecurrentperiodarethefirstandsecondnonfriedpotatochipsproductionlines(firstandsecondinleisureplant)in2020,and7nonfriedpotatoproductionlines(firstandsecondleisureplants)andthesupportingautomaticproductionlineofroastedpotatoesareallpartofthenonfriedproductionline,sotheyarecombinedintooneproject.
15.IntangibleAssets
(1)IntangibleAssetsSituation
| Items | Software | LandUseRight | TrademarkRight | Others | Intotal |
Items
| Items | Software | LandUseRight | TrademarkRight | Others | Intotal |
| OneOriginalBookValue | |||||
| 1.BalanceatBeginningofYear | 3,614,817.40 | 316,407,869.54 | 154,841,200.00 | 689,220.00 | 475,553,106.94 |
| 2.IncreasedAmountsintheCurrentPeriod | 718,557.35 | 718,557.35 | |||
| (1)Purchase | 401,743.19 | 401,743.19 | |||
| (2)InternalR&D | 316,814.16 | 316,814.16 | |||
| (3)Businessmergersincreased | |||||
| 3.DecreasedAmountsintheCurrentPeriod | |||||
| (1)Disposal | |||||
| 4.BalanceatEndofPeriod | 4,333,374.75 | 316,407,869.54 | 154,841,200.00 | 689,220.00 | 476,271,664.29 |
| TwoAccumulatedAmortization | |||||
| 1.BalanceatBeginningofYear | 3,376,870.13 | 55,021,509.60 | 48,321,445.83 | 447.00 | 106,720,272.56 |
| 2.IncreasedAmountsintheCurrentPeriod | 220,888.51 | 6,809,478.04 | 7,713,925.86 | 5,364.00 | 14,749,656.41 |
| (1)Accrual | 220,888.51 | 6,809,478.04 | 7,713,925.86 | 5,364.00 | 14,749,656.41 |
| 3.DecreasedAmountsintheCurrentPeriod | |||||
| (1)Disposal | |||||
| 4.BalanceatEndofPeriod | 3,597,758.64 | 61,830,987.64 | 56,035,371.69 | 5,811.00 | 121,469,928.97 |
| ThreeImpairmentReserves | |||||
| 1.BalanceatBeginningofYear | 662,400.00 | 662,400.00 | |||
| 2.IncreasedAmountsintheCurrentPeriod | |||||
| (1)Accrual | |||||
| 3.DecreasedAmountsintheCurrentPeriod | |||||
| (1)Disposal | |||||
| 4.BalanceatEndofPeriod | 662,400.00 | 662,400.00 | |||
| FourBookValue | |||||
| 1.BookValueatEndofPeriod | 735,616.11 | 254,576,881.90 | 98,805,828.31 | 21,009.00 | 354,139,335.32 |
| 2.BookValueatBeginningofYear | 237,947.27 | 261,386,359.94 | 106,519,754.17 | 26,373.00 | 368,170,434.38 |
16.Goodwill
1.OriginalBookValueofGoodwill
| NameofInvestedUnitorItemsFormingGoodwill | BalanceatBeginningof | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
Year
| Year | FormedbyEnterpriseMerger | Others | Disposal | Others | ||
| AcquirestocksharesofZhejiangXiaowangziFoodCo.,Ltd. | 191,394,422.51 | 191,394,422.51 | ||||
| Intotal | 191,394,422.51 | 191,394,422.51 |
2.Relevantinformationaboutthegrouporgroupsofassetsthatincludegoodwill
| Bookvalueofgoodwill | Assetgrouporportfolioofassetgroups | |||
| Maincomponents | Bookvalue | Determinationmethod | Isthereanychangeinthecurrentperiod | |
| 191,394,422.51 | Fixedassets,investmentrealestate,intangibleassets,constructioninprogress,etc | 855,866,837.02 | Incomemethod | No |
testsonthegoodwillformedbytheacquisitionoftheequityofZhejiangLittlePrinceFoodCo.,Ltd.Thebookvalueoftheassetgroupincludinggoodwillwas855.87millionyuan,andtherecoverableamountwasnolessthan913.17millionyuan.Thetestresultsshowedthattherewasnoimpairmentofgoodwill.
Thecomponentofgrouporgroupsofassets:impairmenttestforgoodwillrelatedassetasgroupofasset,maincashinisindependentfromcashinofothergroupofassets,thisgroupofassetsshouldbeconsistentwiththegroupofassetsthatwasrecognizedintheimpairmenttestofgoodwillonacquisitiondateandpreviousyears.
3.Recognitionmethodofgoodwillimpairmentlossandprocess,keyassumptionsandkeyparametersofgoodwilltest
1)Attheendoftheperiod,thecompanyperformedanimpairmenttestontheassetgrouprelatedtogoodwill.Whenperforminganimpairmenttestonarelatedassetgrouporassetgroupcombinationthatincludesgoodwill,ifthereisanimpairmentoftheassetgrouporassetgroupcombinationrelatedtogoodwillIftherearesigns,animpairmenttestisperformedontheassetgrouporcombinationofassetgroupsthatdoesnotincludegoodwill,andtherecoverableamountiscalculatedandcomparedwiththebookvaluetoconfirmthecorrespondingimpairmentloss.Thenperformanimpairmenttestontheassetgrouporassetgroupcombinationthatincludesgoodwill,andcomparethebookvalueoftheassetgrouporassetgroupcombinationthatcontainsthedistributedgoodwillwithitsrecoverableamount.Iftherelevantassetgrouporassetgroupcombinationisrecoverable,Theamountislowerthanitsbookvalue,andtheimpairmentlossofgoodwillisrecognized.
2)Importantkeyassumptionsadoptedandtheirbasis:
①Asfortheactualsituationofassetsontheevaluationbasedate,itisassumedthatthecompanycontinuestooperate;②Assumethatthecashinflowsratedasunitsaftertheevaluationbasedateareuniforminflows,andcashoutflowsareuniformoutflows;③Onthebasisoftheexistingmanagementmethodsandmanagementlevels,thecompany'sbusinessscopeandmethodsareconsistentwiththecurrentdirection;④Therewillbenomajorchangesintheinterestrates,exchangerates,taxationbenchmarksandtaxrates,andpolicylevyfees;⑤Themanagementoftheunitbeingassessedisresponsible,stableandcapableofperformingitsduties.
3）Keyparameter
Item
| Item | Forecastperiod | Revenuegrowthrateovertheforecastperiod | Revenuegrowthrateoverthestableperiod | Profitmargin | Pre-taxdiscountrate |
| ZhejiangLittlePrinceFoodCo.,Ltd. | 2021to2025 | 3.17% | 0 | Calculatedbasedonforecastedrevenue,costs,expenses,etc. | 16.84% |
4.Impactofgoodwillimpairmenttest
Aftertesting,thecompany'sgoodwillformedbytheacquisitionoftheoperatingassetgroupofZhejiangLittlePrinceFoodCo.,Ltd.isnotimpaired.
17.Long-termUnamortizedExpenses
| Items | BalanceatBeginningofYear | IncreasedAmountsintheCurrentPeriod | AmortizedAmountsintheCurrentPeriod | OtherDecreasedAmounts | BalanceatEndofPeriod |
| Reconstructionofmajuqiaoplant | 15,562,508.21 | 674,188.08 | 14,888,320.13 | ||
| Linanspringgardenwoodlandrentalfees | 5,083,560.00 | 112,968.00 | 4,970,592.00 | ||
| Aisengreentreasurecompanyhousingrenovation | 158,659.20 | 17,638.68 | 141,020.52 | ||
| Ancientcoinbranchcarrentalfee | 117,833.06 | 23,804.07 | 94,028.99 | ||
| Amortizationoflaboratorydecorationcosts | 438,613.86 | 7,371.66 | 431,242.20 | ||
| Informationdisclosurefee | 86,477.92 | 86,477.92 | |||
| Officedecoration | 17,590.58 | 13,192.92 | 4,397.66 | ||
| Total | 21,026,628.97 | 438,613.86 | 935,641.33 | 20,529,601.50 |
18.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
1.DeferredIncomeTaxAssetsNotBeingOffset
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear | ||
| DeductibleTemporaryDifference | DeferredIncomeTaxAssets | DeductibleTemporaryDifference | DeferredIncomeTaxAssets | |
| AssetImpairmentReserves | 254,446.99 | 63,611.73 | 190,997.89 | 47,749.46 |
| DeductibleLoss | 30,360,671.96 | 7,590,167.99 | 31,275,069.48 | 7,818,767.37 |
CreditimpairmentLoss
| CreditimpairmentLoss | 1,368,158.01 | 341,929.04 | 1,613,752.34 | 400,338.47 |
| DeferredIncome | 10,722,337.40 | 2,680,584.35 | 1,901,363.76 | 475,340.94 |
| ValuationofFinancialInstrumentsandDerivativeFinancialInstruments | 5,687,080.00 | 1,421,770.00 | ||
| CreditimpairmentLoss | 5,677,134.00 | 1,419,283.50 | 8,344,697.92 | 2,086,174.48 |
| Intotal | 48,382,748.36 | 12,095,576.61 | 49,012,961.39 | 12,250,140.72 |
2.DetailsofDeferredIncomeTaxLiabilitiesNotBeingOffset
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear | ||
| TaxableTemporaryDifference | DeferredIncomeTaxLiabilities | TaxableTemporaryDifference | DeferredIncomeTaxLiabilities | |
| Valuationandappreciationofassetsinmergerofenterprisesnotunderthesamecontrol | 164,849,010.97 | 41,212,252.73 | 187,755,812.28 | 46,938,953.07 |
| ValuationofFinancialInstrumentsandDerivativeFinancialInstruments | 130,600,895.97 | 32,652,310.83 | 61,988,283.56 | 15,497,070.89 |
| Intotal | 295,449,906.94 | 73,864,563.56 | 249,744,095.84 | 62,436,023.96 |
3.DetailsofDeferredIncomeTaxLiabilitiesafterOffset
| Items | Offsetingamountofdeferredtaxassetsandliabilities | Carryingamountafteroffsettingbetweendeferredtaxassetsandliabilities | offsetingamountofdeferredtaxassetsandliabilitiesattheendoflastperiod | Carryingamountafteroffsettingbetweendeferredtaxassetsandliabilitieattheendoflastperiod |
| Deferredtaxasset | 8,748,762.34 | 3,346,814.27 | 9,647,074.34 | 2,603,066.38 |
| Deferredtaxliabilities | 8,748,762.34 | 65,115,801.22 | 9,647,074.34 | 52,788,949.62 |
4.DetailsofDeferredIncomeTaxAssetsNotBeingConfirmed
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| DeductibleLoss | 33,884.15 | 29,906.20 |
| Deductibletemporarydifferences | 100,248,841.85 | 80,581,354.00 |
| Intotal | 100,282,726.00 | 80,611,260.20 |
5.Deductiblelossondeferredincometaxassetsnotbeingconfirmedwillbedueatthefollowingyears
| Year | BalanceatEndofPeriod | BalanceatBeginningofYear | Notes |
| 2020 | 5,769,102.97 |
Year
| Year | BalanceatEndofPeriod | BalanceatBeginningofYear | Notes |
| 2021 | 4,504,020.42 | 4,504,020.42 | |
| 2022 | 4,030,889.63 | 4,030,889.63 | |
| 2023 | 19,123,515.53 | 19,123,515.53 | |
| 2024 | 47,484,926.46 | 47,153,825.45 | |
| 2025 | 25,105,489.81 | ||
| Total | 100,248,841.85 | 80,581,354.00 |
19.OtherNon-currentAssets
| Items | EndingBalance | BeginningBalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| EquipmentandProjectFunds | 2,517,240.00 | 2,517,240.00 | 1,005,300.00 | 1,005,300.00 | ||
| Three-yeartermdeposit | 317,222,341.67 | 317,222,341.67 | 150,000,000.00 | 150,000,000.00 | ||
| Total | 319,739,581.67 | 319,739,581.67 | 151,005,300.00 | 151,005,300.00 | ||
20.Short-termBorrowings
1.ClassificationofShort-termBorrowings
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Pledgeloan | ||
| Mortgageloan | ||
| GuaranteedLoan | 105,088,229.17 | 310,000,000.00 |
| FiduciaryLoan | 1,392,325,849.88 | 1,019,238,701.60 |
| Intotal | 1,497,414,079.05 | 1,329,238,701.60 |
21.Derivativefinancialliability
| Item | Endingbalance | Beginningbalance |
| Changesinfairvalueofhedginginstruments | 371,219,136.84 | |
| Total | 371,219,136.84 |
22.AccountsPayable
1.AccountsPayableListed
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| MaterialFundsPayable | 60,908,293.40 | 117,367,304.89 |
| ProjectFundsPayable | 12,181,233.26 | 5,013,460.24 |
Items
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| EquipmentFundsPayable | 1,182,750.00 | 5,511,888.97 |
| Others | 1,111,798.73 | 2,675,759.33 |
| Intotal | 75,384,075.39 | 130,568,413.43 |
23.Advancepayment
1.AdvancepaymentListed
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Advancecollectionofrent | 1,087,874.02 | 983,521.42 |
| Intotal | 1,087,874.02 | 983,521.42 |
24.Contractliabilities
1.Classificationofcontractliabilities
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Loans | 341,860,984.30 | 466,156,950.04 |
| Servicepayment | 5,013,276.60 | 13,825,688.07 |
| Others | 153,301.88 | |
| Intotal | 346,874,260.90 | 480,135,939.99 |
25.WagesPayable
1.ListofWagesPayable
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| OneShort-termCompensation | 23,995,435.46 | 309,847,530.49 | 301,744,158.24 | 32,098,807.71 |
| TwoAfter-serviceWelfare-SetupESPliabilities | 1,164,705.96 | 10,253,171.81 | 10,171,548.54 | 1,246,329.23 |
| ThreeDismissionWelfare | 32,442.16 | 181,482.78 | 213,924.94 | |
| FourOtherbenefitsduewithinoneyear | ||||
| Intotal | 25,192,583.58 | 320,282,185.08 | 312,129,631.72 | 33,345,136.94 |
2.ListofShort-termCompensation
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| 1.Wage,Bonus,AllowanceandSubsidy | 20,180,061.36 | 257,182,401.78 | 249,260,667.15 | 28,101,795.99 |
| 2.WelfareExpenseofEmployee | 60.00 | 8,582,309.44 | 8,582,349.44 | 20.00 |
| 3.SocialInsuranceExpense | 846,432.39 | 14,407,129.68 | 14,570,419.69 | 683,142.38 |
| Amongthem:MedicalInsurancePremiums | 655,966.86 | 12,116,675.13 | 12,192,941.93 | 579,700.06 |
| IndustrialInjuryInsurancePremiums | 139,694.48 | 321,528.25 | 408,903.39 | 52,319.34 |
Items
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| BirthInsurancePremiums | 50,771.05 | 655,980.86 | 656,033.87 | 50,718.04 |
| Others | 1,312,945.44 | 1,312,540.50 | 404.94 | |
| 4.HousingProvidentFunds | 305,120.07 | 13,914,481.52 | 13,891,257.74 | 328,343.85 |
| 5.LaborUnionExpenseandPersonnelEducationFund | 2,663,761.64 | 4,855,446.20 | 4,533,702.35 | 2,985,505.49 |
| 6.Short-termCompensatedAbsences | ||||
| 7.Short-termprofitsharingplan | ||||
| 8.Othershort-termremuneration | 10,905,761.87 | 10,905,761.87 | ||
| Intotal | 23,995,435.46 | 309,847,530.49 | 301,744,158.24 | 32,098,807.71 |
3.ListofStatedDrawingsPlan
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| 1.BasicPensionInsurance | 1,084,152.50 | 7,894,572.60 | 7,804,929.55 | 1,173,795.55 |
| 2.UnemploymentInsuranceExpense | 46,187.77 | 353,003.80 | 362,740.78 | 36,450.79 |
| 3.EnterpriseAnnuityCharges | 34,365.69 | 2,005,595.41 | 2,003,878.21 | 36,082.89 |
| Total | 1,164,705.96 | 10,253,171.81 | 10,171,548.54 | 1,246,329.23 |
26.TaxesandFeesPayable
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| CorporateIncomeTax | 21,972,563.71 | 25,362,765.03 |
| VAT | 20,557,653.24 | 9,856,580.09 |
| UrbanMaintenanceandConstructionTax | 1,662,803.83 | 780,497.63 |
| HousePropertyTax | 2,330,072.39 | 2,679,468.56 |
| LandUseTax | 1,203,859.39 | 466,291.09 |
| IndividualIncomeTax | 1,681,176.51 | 7,588,240.51 |
| EducationalSurtax | 663,399.57 | 297,757.24 |
| LocalEducationalSurtax | 494,409.45 | 250,647.90 |
| StampTax | 314,395.32 | 552,502.89 |
| ResourcesTax | 4,240.00 | |
| Environmentalprotectiontax | 3,737.44 | 2,600.25 |
| Waterconservancyconstructionfee | 143.79 | 1,030.22 |
| Intotal | 50,884,214.64 | 47,842,621.41 |
27.OtherAccountsPayable
1.Overview
(1)Classification
Items
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| InterestPayable | 21,082,795.47 | 24,604,524.69 |
| DividendsPayable | 11,013,302.88 | 11,013,302.88 |
| OtherAccountsPayable | 40,196,782.89 | 60,553,568.66 |
| Intotal | 72,292,881.24 | 96,171,396.23 |
2.InterestPayable
(1)Classification
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Interestonlong-termloanswithinterestpaidbyinstallmentsandprincipalpaidatmaturity | ||
| Interestpayableonshorttermloans | 3,521,729.22 | |
| LoanInterestbetweenEnterprises | 21,082,795.47 | 21,082,795.47 |
| Intotal | 21,082,795.47 | 24,604,524.69 |
3.DividendsPayable
(1)Classification
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Commonstockdividends | 7,800,000.00 | 7,800,000.00 |
| Others | 3,213,302.88 | 3,213,302.88 |
| Intotal | 11,013,302.88 | 11,013,302.88 |
4.OtherAccountsPayable
(1)ListofOtherAccountsPayablebyNatureofFunds
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| LoanandInterest | 11,258,346.00 | |
| IntercourseFundsofRelatedParties | 1,831,079.90 | 7,852,823.90 |
| IntercourseFundsbetweenUnits | 13,468,108.09 | 12,791,535.12 |
| PersonalIntercourseFunds | 4,025,881.59 | 2,930,547.58 |
| GuaranteedDepositandDeposit | 16,271,518.35 | 21,235,322.03 |
| VariousInsurancesofEmployee | 2,102,370.03 | 1,605,759.25 |
| WarehouseandStorageCharges | 701,645.19 | |
| Others | 2,497,824.93 | 2,177,589.59 |
| Intotal | 40,196,782.89 | 60,553,568.66 |
28.Othercurrentliability
1.Othercurrentliabilitystatement
Item
| Item | Endbalance | Beginningbalance |
| Value-addedtaxtobewrittenoff | 8,319,696.79 | |
| Total | 8,319,696.79 |
29.Longtermwagepayable
1.Listoflong-termwagepayable
| Items | BalanceatEndofPeriod | BalanceatBeginningofYear |
| Netliabilitiesofdefinedbenefitplaninpostemploymentbenefits | ||
| DismissionWelfare | 43,582.87 | |
| OtherLong-termWelfare | 5,677,134.00 | 5,687,080.00 |
| Intotal | 5,677,134.00 | 5,730,662.87 |
30.DeferredIncome
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod | CauseofFormation |
| GovernmentSubsidy | 71,518,169.27 | 633,746.30 | 3,435,216.23 | 68,716,699.34 | |
| Intotal | 71,518,169.27 | 633,746.30 | 3,435,216.23 | 68,716,699.34 | -- |
Amongthem，itemsinvolvinggovernmentsubsidy
| ItemsReceivingSubsidy | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | ChargetoNon-operatingIncome | ChargetootherProfits | Otherchanges | BalanceatEndofPeriod | Assetrelated/incomerelated |
| Enterprisefoundationsupportingintheconstructionstageof"TianjinLingangIndustrialZoneManagementCommittee" | 51,206,627.77 | 1,277,504.16 | 49,929,123.61 | Assetrelated | |||
| Specialsubsidyforinfrastructureinvestment | 11,205,178.95 | 908,692.05 | 10,296,486.90 | Assetrelated | |||
| Therelocationcompensation | 4,617,165.78 | 384,763.82 | 4,232,401.96 | Assetrelated | |||
| TianjinBinhaiNewDistrict’sIndustriallyTechnicalRenovationandParkConstructionFundsaswellasExpendituresforScienceandTechnology | 2,314,814.69 | 222,222.24 | 2,092,592.45 | Assetrelated |
ItemsReceivingSubsidy
| ItemsReceivingSubsidy | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | ChargetoNon-operatingIncome | ChargetootherProfits | Otherchanges | BalanceatEndofPeriod | Assetrelated/incomerelated |
| Specialsubsidiesfortechnicalupgradingofproductionlines | 900,000.00 | 450,000.00 | 450,000.00 | Assetrelated | |||
| Keytechnologyresearchandindustrializationprojectof"moderateprocessing"ofgrainandoil | 856,227.08 | 77,838.84 | 778,388.24 | Assetrelated | |||
| Constructionofprovincialgrainreserveinformationmanagementsystemtoformassetentryproject | 633,746.30 | 633,746.30 | Assetrelated | ||||
| Researchandtechnologydemonstrationofgreenandcleanproductionequipmentandprocessforedibleoil | 299,569.96 | 56,000.04 | 243,569.92 | Assetrelated | |||
| Designofelectricheatingsystemforoiltank | 118,585.04 | 58,195.08 | 60,389.96 | Assetrelated | |||
| Intotal | 71,518,169.27 | 633,746.30 | 3,435,216.23 | 68,716,699.34 | -- |
31.ShareCapital
| Items | BalanceatBeginningofYear | ChangesintheCurrentPeriod（+、-） | BalanceatEndofPeriod | ||||
| NewShareIssue | ShareDonation | ShareTransferofProvidentFund | Others | Sub-total | |||
| 1.ShareswithRestrictedConditions | 214,687,558.00 | 41,159,887.00 | -48,510,460.00 | -7,350,573.00 | 207,336,985.00 | ||
| (1)StateShareholding | |||||||
| (2)State-ownedLegal-personShareholding | 213,388,058.00 | -48,510,460.00 | -48,510,460.00 | 164,877,598.00 | |||
| (3)OtherDomesticCapitalShareholding | 1,299,500.00 | 41,159,887.00 | 41,159,887.00 | 42,459,387.00 | |||
| Including:DomesticLegal-personShareholding | 1,299,500.00 | 1,299,500.00 | |||||
| DomesticNatural | 41,159,887.00 | 41,159,887.00 | 41,159,887.00 | ||||
Items
| Items | BalanceatBeginningofYear | ChangesintheCurrentPeriod（+、-） | BalanceatEndofPeriod | ||||
| NewShareIssue | ShareDonation | ShareTransferofProvidentFund | Others | Sub-total | |||
| PersonShareholding | |||||||
| (4)ForeignShareholding | |||||||
| Including:ForeignLegal-personShareholding | |||||||
| ForeignNaturalPersonShareholding | |||||||
| 2.TradableShareswithoutRestrictedConditions | 471,102,806.00 | 48,510,460.00 | 48,510,460.00 | 519,613,266.00 | |||
| (1)RMBOrdinaryShares | 406,127,806.00 | 48,510,460.00 | 48,510,460.00 | 454,638,266.00 | |||
| (2)DomesticallyListedForeignShares | 64,975,000.00 | 64,975,000.00 | |||||
| (3)ListedForeignSharesOverseas | |||||||
| (4)Others | |||||||
| Intotal | 685,790,364.00 | 41,159,887.00 | 41,159,887.00 | 726,950,251.00 | |||
32.CapitalReserves
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| CapitalPremium(StockPremium) | 1,243,731,683.62 | 205,757,432.13 | 126,601,129.37 | 1,322,887,986.38 |
| CapitalReservesRoll-inUnderOriginalSystem | 112,316,357.36 | 112,316,357.36 | ||
| OtherCapitalReserves | 239,624,007.21 | 239,624,007.21 | ||
| Intotal | 1,595,672,048.19 | 205,757,432.13 | 126,601,129.37 | 1,674,828,350.95 |
Note:Theincreaseofcapitalreserveisthenetamountofthe25.1149%equitypremiumofminorityshareholdersofZhejiangLittlePrinceFoodCo.,Ltdafterdeductingtheissuingexpenses.Thedecreaseofcapitalreserveisthedifferencebetweenthenewlyacquiredlong-termequityinvestmentinpurchasingminorityshareholders'equityofthesubsidiaryZhejiangLittlePrinceFoodCo.,Ltd.,andtheshareofnetassetsthatshouldbecontinuouslycalculatedsincethedateofmergerbasedontheproportionofnewlyaddedshares.
33.OtherComprehensiveIncomes
Items
| Items | AmountsOccurredintheCurrentPeriod | |||||||
| BalanceatBeginningofYear | AmountsOccurredbeforeIncomeTaxintheCurrentPeriod | Less:OtherComprehensiveIncomesChargedatEarlierStageandCurrentRoll-inProfitandLoss | Less:includedinothercomprehensiveincomeinthepreviousperiodandtransferredtoretainedincomeinthecurrentperiod | Less:IncomeTaxExpense | AttributabletoParentCompanyAfterTax | AttributabletoMinorityShareholdersAfterTax | BalanceatEndofPeriod | |
| OneOthercomprehensiveincomesthatwon’tbeclassifiedintoprofitandloss | ||||||||
| 1.Remeasureandsetthechangeamountofbenefitplan | ||||||||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitsandlossesundertheequitymethod | ||||||||
| 3.Changesinthefairvalueofotherequityinstrumentinvestments | ||||||||
| 4.Changesinfairvalueoftheenterprise'sowncreditrisk | ||||||||
TwoOthercomprehensiveincomesthatwillbeclassifiedintoprofitandloss
| TwoOthercomprehensiveincomesthatwillbeclassifiedintoprofitandloss | 267,628.14 | -630,886.80 | -630,886.80 | -363,258.66 | ||
| 1.Othercomprehensiveincometransferabletoprofitandlossundertheequitymethod | -273,702.00 | -81,510.00 | -81,510.00 | -355,212.00 | ||
| 2.Changesinthefairvalueofotherdebtinvestments | ||||||
| 3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||||||
| 4.Provisionforcreditimpairmentofotherdebtinvestment | ||||||
| 5.Effectivepartofcashflowhedging | ||||||
| 6.Converteddifferencebetweenforeigncurrencyfinancialstatements | 541,330.14 | -549,376.80 | -549,376.80 | -8,046.66 | ||
| Total | 267,628.14 | -630,886.80 | -630,886.80 | -363,258.66 |
34.SurplusReserves
Items
| Items | BalanceatBeginningofYear | IncreaseintheCurrentPeriod | DecreaseintheCurrentPeriod | BalanceatEndofPeriod |
| StatutorySurplusReserves | 84,487,609.05 | 84,487,609.05 | ||
| FreeSurplusReserves | 37,634,827.93 | 37,634,827.93 | ||
| Intotal | 122,122,436.98 | 122,122,436.98 |
35.UndistributedProfit
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Adjustmentonundistributedprofitatendoflastyear | 2,186,806.56 | -131,155,119.19 |
| Adjustmentontotalnumberofundistributedprofitatbeginningofperiod(increase+anddecrease-) | ||
| Adjustedundistributedprofitatbeginningofperiod | 2,186,806.56 | -131,155,119.19 |
| Add:netprofitattributabletoparentcompanyinthecurrentperiod | 184,846,956.70 | 133,341,925.75 |
| Less:withdrawallegalsurplusreserves | ||
| Withdrawalfreesurplusreserves | ||
| Withdrawalgeneralriskreserves | ||
| Ordinarystockdividendspayable | ||
| Ordinarystockdividendstransferredtocapital | ||
| Undistributedprofitatendofperiod | 187,033,763.26 | 2,186,806.56 |
36.OperationRevenueandOperationCost
1.OperationRevenueandOperationCost
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | ||
| Revenue | Cost | Revenue | Cost | |
| PrimeBusiness | 8,697,572,481.21 | 8,071,341,928.74 | 7,391,949,995.86 | 6,804,978,163.57 |
| OtherBusiness | 44,177,430.90 | 19,505,316.68 | 48,336,469.68 | 9,085,593.97 |
| Intotal | 8,741,749,912.11 | 8,090,847,245.42 | 7,440,286,465.54 | 6,814,063,757.54 |
2.PrimeBusiness(IndustryandBusiness-classified)
| NameofIndustry(orBusiness) | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | ||
| Revenue | Cost | Revenue | Cost | |
| OilandOilSeeds | 7,765,755,097.07 | 7,410,229,164.25 | 6,428,529,306.74 | 6,139,381,151.14 |
| FoodProcessing | 898,193,522.11 | 633,566,522.42 | 940,737,948.76 | 643,054,491.71 |
| Others | 33,623,862.03 | 27,546,242.07 | 22,682,740.36 | 22,542,520.72 |
| Intotal | 8,697,572,481.21 | 8,071,341,928.74 | 7,391,949,995.86 | 6,804,978,163.57 |
3.PrimeBusiness(Region-classified)
NameofRegion
| NameofRegion | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | ||
| Revenue | Cost | Revenue | Cost | |
| Beijing | 3,710,872,460.99 | 3,440,771,897.41 | 2,747,243,314.18 | 2,397,680,893.09 |
| Tianjin | 3,830,727,489.25 | 3,763,990,283.10 | 3,281,919,197.95 | 3,326,423,104.55 |
| Zhejiang | 643,672,378.87 | 432,673,898.28 | 660,855,948.74 | 432,813,437.59 |
| Shandong | 42,495,190.76 | 41,270,102.95 | 51,495,923.63 | 45,030,001.48 |
| Liaoning | 127,396,208.08 | 98,817,141.25 | 135,881,783.18 | 102,395,375.88 |
| Hebei | 342,408,753.26 | 293,818,605.75 | 514,553,828.18 | 500,635,350.98 |
| Intotal | 8,697,572,481.21 | 8,071,341,928.74 | 7,391,949,995.86 | 6,804,978,163.57 |
37.TariffAndAnnex
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| UrbanMaintenanceandConstructionTax | 6,612,721.25 | 6,093,645.72 |
| EducationalSurtax | 2,895,143.94 | 2,682,713.53 |
| LocalEducationalSurtax | 1,930,095.99 | 1,788,475.73 |
| HousePropertytax | 6,842,452.33 | 7,936,929.23 |
| LandUseTax | 2,222,677.37 | 2,356,178.12 |
| StampTax | 2,582,084.39 | 2,731,286.14 |
| VehicleandVesselUseTax | 40,775.71 | 48,509.20 |
| ResourcesTax | 4,790.20 | 118,258.80 |
| OtherTaxesandFees | 51,780.08 | 59,027.13 |
| Intotal | 23,182,521.26 | 23,815,023.60 |
38.SalesExpenses
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| EmployeeCompensation(includingsocialsecurity,etc) | 72,069,470.68 | 62,457,654.45 |
| SalesPromotionExpenses | 39,131,372.82 | 45,368,001.12 |
| TransportationFees | 20,843,864.55 | |
| WarehousingFees | 13,401,508.98 | 12,030,169.38 |
| Depreciation | 13,195,597.53 | 16,706,266.82 |
| Materialconsumption,sampleandproductcost | 7,457,562.25 | 6,401,606.55 |
| TravelExpenses | 5,425,245.85 | 7,459,494.17 |
| RepairCosts | 4,741,287.38 | 988,553.17 |
| OperationExpenses | 4,142,565.31 | 3,367,394.63 |
| Leasefee | 2,110,200.00 | 2,110,200.00 |
Items
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| TerminalCharges | 1,769,880.36 | 1,781,254.51 |
| WaterandElectricityFees | 1,149,996.78 | 1,317,285.88 |
| CommodityWastage | 1,144,468.29 | 428,904.88 |
| VehicleFees | 653,952.78 | 1,078,366.27 |
| PackingExpenses | 606,343.75 | 1,327,097.49 |
| TestandDetectionFees | 252,606.47 | 267,201.08 |
| BusinessEntertainmentExpenses | 221,142.33 | 550,474.52 |
| LaborProtectionFees | 134,970.62 | 79,030.24 |
| CommercialInsuranceExpenses | 9,339.62 | 10,435.78 |
| AdvertisingExpenses | 11,085,644.09 | |
| Others | 920,799.12 | 567,895.16 |
| Total | 168,538,310.92 | 196,226,794.74 |
39.AdministrationExpenses
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| EmployeeCompensation(includingsocialsecurity,etc) | 105,757,801.44 | 102,691,365.80 |
| ImpairmentCosts | 21,138,588.30 | 18,137,368.85 |
| AmortizationofAssets | 15,395,887.82 | 16,650,941.54 |
| FeesofEmployingAgent | 12,011,480.46 | 9,421,510.94 |
| CompanyExpenses | 4,579,775.70 | 4,107,943.99 |
| RepairCosts | 3,347,098.20 | 2,999,695.40 |
| Leasefee | 3,335,385.77 | 3,636,177.17 |
| VehicleFees | 2,737,975.97 | 3,867,315.61 |
| InformationNetworkFees | 2,558,612.63 | 1,862,267.09 |
| BusinessEntertainmentExpenses | 1,180,688.87 | 1,980,884.01 |
| EnvironmentalProtectionFees | 1,031,270.41 | 808,496.07 |
| CommercialInsuranceExpenses | 991,422.05 | 721,834.71 |
| WorkersInsuranceExpenses | 970,146.22 | 1,263,337.27 |
| SecurityProtectionFees | 953,250.21 | 852,488.34 |
| LaborProtectionFees | 782,547.70 | 340,774.62 |
| OfficeExpenses | 740,979.84 | 1,653,825.87 |
| MaterialConsumption | 545,101.54 | 650,553.96 |
| TravelExpenses | 409,662.51 | 1,582,115.44 |
| ConsultationServiceFees | 224,407.55 | 161,320.75 |
| TaxesinExpenses | 146,246.44 | 303,532.72 |
Items
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| OtherExpenses | 700,399.30 | 2,130,893.15 |
| Intotal | 179,538,728.93 | 175,824,643.30 |
40.ResearchandDevelopmentExpenses
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Salary | 6,967,316.66 | 5,613,787.98 |
| Materialconsumption | 1,713,717.37 | 693,150.43 |
| Designexpense | 308,142.99 | 207,467.10 |
| TransportationExpense | 48,507.01 | 42,738.99 |
| Others | 865,537.90 | 904,544.07 |
| Intotal | 9,903,221.93 | 7,461,688.57 |
41.FinancialExpenses
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| InterestExpenses | 31,742,996.45 | 47,287,539.19 |
| Less:InterestIncome | 16,035,923.84 | 14,712,048.02 |
| ExchangeProfitandLoss | 3,881,862.45 | -163,503.06 |
| ServiceCharges | 1,527,207.20 | 747,948.92 |
| Intotal | 21,116,142.26 | 33,159,937.03 |
42.OtherProfits
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| GovernmentSubsidyRelatedtoDailyCorporateActivities | 15,837,109.11 | 20,745,415.25 |
| ReturnofServiceChargesofWithholdingIndividualIncomeTax | 281,742.91 | 64,036.13 |
| RefundofVATandsurtax | 103,652.86 | |
| Intotal | 16,222,504.88 | 20,809,451.38 |
43.InvestmentIncome
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Long-termequityinvestmentincomeaccountedwithequitymethod | 19,542,664.00 | 7,478,217.97 |
| Investmentincomegeneratedfromdisposinglong-termequityinvestment | -357,650.19 | |
| Investmentincomeobtainedduringtheholdingoftransactionalfinancialassets | 401,460.93 | 2,392,808.34 |
| Investmentincomefromdisposalofwealthmanagementproducts | 13,327,294.52 | 8,242,426.95 |
| Investmentincomeofdisposingtradingfinancialasssets | 4,097,586.02 | 2,340,631.67 |
| Others | 506,874.91 |
Items
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Intotal | 37,875,880.38 | 20,096,434.74 |
44.ProfitsonChangesinFairValue
| Sourceofgeneratingincomewithchangesinfairvalue | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Financialassetsthataremeasuredasperfairvalueandforwhichthechangesareincludedinthecurrentprofitandloss | -16,467,791.36 | 11,943,192.05 |
| Including:incomewithchangesinfairvaluegeneratedbyderivativefinancialinstruments | -16,467,791.36 | 11,943,192.05 |
| Tradingfinancialliabilities | ||
| Investmentrealestatemeasuredbyfairvalue | ||
| Intotal | -16,467,791.36 | 11,943,192.05 |
45.Creditimpairmentloss
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Accountsreceivablebaddebtloss | 30,273.95 | -1,191,417.76 |
| Otherreceivablesbaddebtloss | 221,436.24 | -104,250.03 |
| Total | 251,710.19 | -1,295,667.79 |
46.LossfromAssetDevaluation
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| LossonBadDebts | ||
| LossonInventoryPriceDrop | -63,449.10 | -32,583.96 |
| Intotal | -63,449.10 | -32,583.96 |
47.AssetsDisposalIncome
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Gainsorlossesondisposaloffixedassets | 38,752.37 | -2,667,430.71 |
| Gainsorlossesondisposalofintangibleassets | 12,052,586.13 | |
| Intotal | 38,752.37 | 9,385,155.42 |
48.Non-operatingIncome
1.Classification
Items
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | AmountsChargedtoNon-recurringProfitandLoss |
| Totalnoncurrentassetsretirementgains: | 37,474.17 | 37,474.17 | |
| Including:fixedassetsscrapprofit | 37,474.17 | 37,474.17 | |
| profitfromscrapofintangibleassets | |||
| DonationGains | 10,000.00 | 10,000.00 | |
| GovernmentSubsidy | 60,000.00 | 60,000.00 | |
| AssetInventorySurplusGains | 2.50 | ||
| RelocationCompensation | 159,967.20 | 9,351,899.02 | 159,967.20 |
| DemandCompensationIncome | 74,975.30 | 172,020.83 | 74,975.30 |
| OtherGains | 404,172.75 | 1,684,640.56 | 404,172.75 |
| Intotal | 746,589.42 | 11,208,562.91 | 746,589.42 |
2.GovernmentSubsidyChargedtoNon-recurringProfitandLoss
| Subsidyprojects | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | Assetrelated/incomerelated |
| Qualityandpatentawardsin2020 | 50,000.00 | Incomerelated | |
| Reliefpolicysubsidy | 10,000.00 | Incomerelated | |
| Total | 60,000.00 | - |
49.Non-operatingExpenses
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod | AmountsChargedtoNon-recurringProfitandLoss |
| Totallossonscrapofnoncurrentassets | 457,274.93 | 210,659.85 | 457,274.93 |
| Including:lossonscrapoffixedassets | 457,274.93 | 210,659.85 | 457,274.93 |
| lossonscrapofintangibleassets | |||
| DonationExpenses | 48,940.54 | 5,250.00 | 48,940.54 |
| Undergroundparking | 1,020,523.67 | 1,020,523.67 | |
| Repaymentofloanprincipalofsmallloans | 359,396.32 | 359,396.32 | |
| RelocationLoss | 234,171.72 | ||
| Penaltyexpenditure | 2,400.26 | ||
| Compensation | 196.47 | ||
| Others | 2,009.53 | 1,688,885.07 | 2,009.53 |
| Total | 1,888,144.99 | 2,141,563.37 | 1,888,144.99 |
50.IncomeTaxExpenses
(1)ListofIncomeTaxExpenses
AmountsintheCurrentPeriod
| AmountsintheCurrentPeriod | AmountsinthePriorPeriod | AmountsintheCurrentPeriod |
| IncomeTaxExpensesoftheCurrentPeriod | 54,532,194.91 | 65,171,407.12 |
| DeferredIncomeTaxExpenses | 11,583,103.71 | 15,898,023.91 |
| Others | 66,115,298.62 | 81,069,431.03 |
(2)AccountingProfitandIncomeTaxExpenseAdjustmentProcess
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| TotalProfits | 285,339,793.18 | 259,707,602.14 |
| Incometaxexpensescalculatedbystatutory/applicabletaxrate | 71,334,948.30 | 64,926,900.54 |
| Effectofsubsidiarycorporationsbeingapplicabletodifferenttaxrates | -947,694.04 | -772,184.46 |
| Adjustmentoneffectofincometaxinthepriorperiod | 430,220.89 | 94,976.38 |
| EffectofNon-taxableIncomes | -3,847,972.30 | -4,788,633.58 |
| EffectofNon-deductiblecost,expenseandloss | 970,773.85 | 12,015,552.86 |
| Effectofdeductiblelossonusageofunconfirmeddeferredincometaxassetsinthepriorperiod | -5,783,060.94 | -308,800.54 |
| Effectofdeductibletemporarydifferenceordeductiblelossonunconfirmeddeferredincometaxinthecurrentperiod | 6,278,648.02 | 12,219,210.36 |
| Effectofdeductions | -2,320,565.16 | -2,461,970.17 |
| Others | 144,379.64 | |
| IncomeTaxExpenses | 66,115,298.62 | 81,069,431.03 |
51.OthercomprehensiveincomeitemsandtheirincometaximpactandtransferredtoprofitandlossSeedetailsof‘AppendixSixNotesonItemsinConsolidatedFinancialStatements,33OtherComprehensiveIncomes’
52.Notestoitemsrelatedcashflowstatement
(1)Receivingothercashrelatedtooperationactivities
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| IntercourseFundsofRelatedParties | 6,059,604.42 | 10,772,776.17 |
| IntercourseFundsofOtherUnits | 47,080,919.02 | 101,636,552.56 |
| Non-operatingIncomeandotherincome | 14,165,759.99 | 2,228,326.84 |
| InterestIncome | 15,727,323.95 | 12,495,698.33 |
| FutureMargins | 874,862,645.55 | 505,801,637.81 |
Items
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Others | 5,979,776.55 | 9,827,734.85 |
| Total | 963,876,029.48 | 642,762,726.56 |
(2)OtherCashPaymentRelatedtoOperationActivities
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| IntercourseFundsofRelatedParties | 27,810,666.27 | 4,628,731.15 |
| IntercourseFundsofOtherUnits | 85,094,941.48 | 205,840,325.66 |
| PaymentforAdministrationExpenses | 36,716,789.68 | 31,856,659.10 |
| PaymentforOperatingExpenses | 103,477,595.33 | 55,226,822.83 |
| Non-operatingExpenses | 1,435,373.86 | 137,198.62 |
| PettyCashPaid | 785,283.72 | 1,067,049.09 |
| BankCharges | 1,527,207.20 | 741,832.78 |
| FutureMargins | 1,383,095,725.00 | 356,196,432.00 |
| Others | 10,217,449.20 | 13,079,169.86 |
| Intotal | 1,650,161,031.74 | 668,774,221.09 |
(3)Othercashreceivedrelatedtoinvestmentactivities
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Fixedassetssubsidy | 960,000.00 | |
| Intotal | 960,000.00 |
(4)Othercashpaidrelatedtofinancingactivities
| Items | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| Acquisitionofminorityshareholders'equityofZhejiangLittlePrince | 104,730,266.66 | |
| Intotal | 104,730,266.66 |
53.SupplementaryMaterialsofCashFlowsStatement
(1)SupplementaryMaterialsofCashFlowsStatement
| SupplementaryMaterials | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| 1.Adjustingnetaccountingprofittooperatingcashflow | ||
| NetProfit | 219,224,494.56 | 178,638,171.11 |
| Add:AssetsImpairmentReserves | 23,449.10 | 32,583.96 |
| Creditimpairmentloss | -211,710.19 | 1,295,667.79 |
SupplementaryMaterials
| SupplementaryMaterials | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| FixedAssetsDepreciation,Oil-and-gasAssetsDepreciationandProductiveBiologicalAssetsDepreciation | 111,137,864.85 | 98,222,379.13 |
| AmortizationofIntangibleAssets | 14,749,656.41 | 15,035,549.01 |
| AmortizationofLong-termDeferredExpenses | 935,641.33 | 11,894,070.59 |
| LossesonDisposalofFixedAssets,IntangibleAssetsandOtherLong-termAssets(Fillinprofitwithsymbol“－”) | -38,752.37 | -9,385,155.42 |
| LossesonRetirementofFixedAssets(Fillinprofitwithsymbol“－”) | 419,800.76 | 210,659.85 |
| LossesonChangesinFairValue(Fillinprofitwithsymbol“－”) | 16,467,791.36 | -11,943,192.05 |
| FinancialExpenses(Fillinprofitwithsymbol“－”) | 31,742,996.45 | 47,124,036.13 |
| InvestmentLosses(Fillinprofitwithsymbol“－”) | -37,875,880.38 | -20,096,434.74 |
| DecreaseinDeferredIncomeTaxAssets(Fillinincreasewithsymbol“－”) | -743,747.89 | 3,080,839.42 |
| IncreaseinDeferredIncomeTaxReliabilities(Fillindecreasewithsymbol“－”) | 12,326,851.60 | 12,817,184.49 |
| DecreaseinInventory(Fillinincreasewithsymbol“－”) | 186,560,389.70 | -183,379,823.18 |
| DecreaseinItemsofOperatingReceivables(Fillinincreasewithsymbol“－”) | -682,322,952.93 | -549,567,530.18 |
| IncreaseinItemsofOperatingReceivables(Fillindecreasewithsymbol“－”) | -118,936,802.44 | 703,387,788.14 |
| Others | ||
| NetCashFlowsfromOperatingActivities | -246,540,910.08 | 297,366,794.05 |
| 2.Majorinvestmentandfinancingactivitiesthatdonotinvolvecashpayments | ||
| ConversionofDebtintoCapital | ||
| ConvertibleBondsDueWithinOneYear | ||
| FixedAssetsunderFinancingLease |
SupplementaryMaterials
| SupplementaryMaterials | AmountsintheCurrentPeriod | AmountsinthePriorPeriod |
| 3.Netchangeconditionsincashandcashequivalents | ||
| Cashbalanceatendofperiod | 334,389,017.41 | 555,097,777.21 |
| Less:cashbalanceatbeginningofperiod | 555,097,777.21 | 867,870,016.78 |
| Add:balanceofthecashequivalentsatendofperiod | ||
| Less:balanceofthecashequivalentsatbeginningofperiod | ||
| Cashandcashequivalentnetincreasequota | -220,708,759.80 | -312,772,239.57 |
(2)Netcashreceivedfordisposalofsubsidiariesduringthecurrentperiod
| Items | Amounts |
| Disposeofcashorcashequivalentsreceivedbythesubsidiaryduringthecurrentperiod | |
| Plus:cashorcashequivalentsreceivedinthecurrentperiodfromthedisposalofsubsidiariesinpreviousperiods | 5,000,000.00 |
| Amongthem:JingliangXinchuang(Tianjin)BusinessManagementCo.,Ltd | 5,000,000.00 |
| Disposalofnetcashreceivedbysubsidiaries | 5,000,000.00 |
(3)Compositionofcashandcashequivalents
| Items | BalanceatEndofPeriod | BalanceatBeginningofPeriod |
| OneCash | 334,389,017.41 | 555,097,777.21 |
| Including:cashinstock | 16,761.72 | 27,780.31 |
| Bankdepositavailableforpaymentatanytime | 298,158,812.41 | 553,067,993.87 |
| Othercurrencyfundsavailableforpaymentatanytime | 36,213,443.28 | 2,002,003.03 |
| Depositswithcentralbankavailableforpayment | ||
| Interbankdeposit | ||
| Interbankplacements | ||
| TwoCashEquivalents | ||
| Including:bondinvestmentmaturingwithinthreemonths | ||
| ThreeBalanceofCashandCashEquivalentsatEndofPeriod | 334,389,017.41 | 555,097,777.21 |
| Including:restrictedcashandcashequivalentsusedbyparentcompanyorintra-groupaffiliates |
54.Assetswithrestrictedownershiporrighttouse
Items
| Items | BookValueatEndofPeriod | ReasonsbeingRestricted |
| CurrencyFunds | 1,077,152.20 | Arbitrationfreezing |
| Inventory | 3,775,954.85 | LoanMortgage |
| InvestmentRealEstate | 6,222,001.73 | LoanMortgage |
| FixedAssets | 2,060,096.30 | LoanMortgage |
| Intotal | 13,135,205.08 | —— |
55.MonetaryItemsofForeignCurrency
(1)MonetaryItemsofForeignCurrency
| Items | BalanceofForeignCurrencyatEndofPeriod | ExchangeRateConvert | BalanceofConvertingtoRMBatEndofPeriod |
| Monetaryfund | 774,973.43 | 6.5249 | 5,056,624.13 |
| Including:USDollars | 774,973.43 | 6.5249 | 5,056,624.13 |
| Accountsreceivable | 160,130.00 | 6.5249 | 1,044,832.24 |
| Including:USDollars | 160,130.00 | 6.5249 | 1,044,832.24 |
| Taxpayable | 15,397.40 | 6.5249 | 100,466.50 |
| Including:USDollars | 15,397.40 | 6.5249 | 100,466.50 |
| OtherPayables | 58,400.00 | 6.5249 | 381,054.16 |
| Including:USDollars | 58,400.00 | 6.5249 | 381,054.16 |
(2)InstructionofOperationalEntityOverseasTheregistrantandoperatingunitoftheCompanyisBeijingGrain(Singapore)InternationalTradeCo.,Ltd.withmainbusinessplaceofSingaporeandrecordingcurrencyofUSDollars.
56.HedgingitemsandrelatedhedginginstrumentsPleasereferto21.DerivativefinancialliabilityunderSectionVIoftheNotes.
57.GovernmentSubsidies
（1）Basicconditionsofgovernmentgrants
| Type | Amount | Presentationitem | Amountrecordedinprofitandloss |
| Financialdiscountforepidemicsituation | 9,874,392.47 | Financialexpenses | 9,874,392.47 |
| VATreturn | 9,719,521.14 | Otherincome | 9,719,521.14 |
| Constructionofprovincialgrainreserveinformationmanagementsystemtoformassetentryproject | 633,746.30 | Otherincome | |
| KunpengProgramAward | 500,000.00 | Otherincome | 500,000.00 |
Type
| Type | Amount | Presentationitem | Amountrecordedinprofitandloss |
| Subsidiesforreplacingtrainingwithwork | 455,100.00 | Otherincome | 455,100.00 |
| Landtaxrelief | 286,000.02 | Otherincome | 286,000.02 |
| Subsidyforjobstabilization | 205,416.29 | Otherincome | 205,416.29 |
| Compensationforcoaltogasboiler | 200,000.00 | Otherincome | 200,000.00 |
| FinancialassistancefromtheBureauofCommerce | 131,200.00 | Otherincome | 131,200.00 |
| Reconstructionprojectofpalletizingsystemofmediumpackagingproductionline | 130,000.00 | Otherincome | 130,000.00 |
| Tianjinbusinessportconstructionsubsidy | 114,147.00 | Otherincome | 114,147.00 |
| Unemploymentmanagementfund | 105,000.00 | Otherincome | 105,000.00 |
| Specialfundsforecologicalandenvironmentalprotection | 101,200.00 | Otherincome | 101,200.00 |
| Incentivefundsforindustrialenterprises | 90,000.00 | Otherincome | 90,000.00 |
| Onlinetrainingsubsidy | 86,100.00 | Otherincome | 86,100.00 |
| Postsubsidyforthedisabled | 99,756.57 | Otherincome | 99,756.57 |
| Qualityandpatentawardsin2020 | 50,000.00 | Non-operatingincome | 50,000.00 |
| Maternityinsuranceallowance | 45,158.86 | Otherincome | 45,158.86 |
| Taxpreferenceforretiredsoldiers(VATpreference) | 45,000.00 | Otherincome | 45,000.00 |
| Subsidyforlownitrogencombustiontransformationprojectofgasfiredboiler | 30,000.00 | Otherincome | 30,000.00 |
| SubsidyforworkinggrainofCommerceBureau | 30,000.00 | Otherincome | 30,000.00 |
| DevelopmentandReformBureau2019Lin'andistrictenergy"doublecontrol"targetassessmentAward | 16,423.00 | Otherincome | 16,423.00 |
| Reliefpolicysubsidy | 10,000.00 | Non-operatingincome | 10,000.00 |
Type
| Type | Amount | Presentationitem | Amountrecordedinprofitandloss |
| EnterprisesubsidiesandAwards | 8,200.00 | Otherincome | 8,200.00 |
| Littleprincemultipatentpeasubsidy | 2,000.00 | Otherincome | 2,000.00 |
| Grainandoilmarketinformationmonitoringfeesubsidy | 1,390.00 | Otherincome | 1,390.00 |
| Preferentialtaxcontrolsystem | 280.00 | Otherincome | 280.00 |
| Total | 22,970,031.65 | 22,336,285.35 |
VII.ChangeinConsolidationScopeTheCompanyhasnochangeinthescopeofmergerduringthisreportingperiod.VIII.EquitiesinOtherEntities
1.EquitiesinSubsidiaries
(1)CompositionoftheCompany
| NameofSubsidiary | PrinciplePlaceofBusiness | RegisteredPlace | NatureofBusiness | ShareholdingRatio(%) | Votingrightsratio(%) | ModeofAcquisition | |
| Direct | Indirect | ||||||
| BeijingJingliangFoodCo.,Ltd. | Beijing | Beijing | Investmentmanagement | 100 | 100 | Mergerunderthesamecontrol | |
| Jingliang(Tianjin)GrainandOilIndustryCo.,Ltd. | Tianjin | Tianjin | AgriculturalProductandByProductProcessing | 70 | 70 | Mergerunderthesamecontrol | |
| BeijingJingliangOilandFatCo.,Ltd. | Beijing | Beijing | Grainandoiltrade | 100 | 100 | Mergerunderthesamecontrol | |
| Jingliang(Hebei)OilIndustryCo.,Ltd. | Hebei | Hebei | FarmandSidelineFoodProcessing | 51 | 51 | Mergerunderthesamecontrol | |
| BeijingGuchuanEdibleOilCo.,Ltd. | Beijing | Beijing | Grainandoiltrade | 100 | 100 | Mergerunderthesamecontrol | |
| BeijingEisen-LubaoOilCo.,Ltd. | Beijing | Beijing | FarmandSidelineFoodProcessing | 100 | 100 | Mergerunderthesamecontrol | |
NameofSubsidiary
| NameofSubsidiary | PrinciplePlaceofBusiness | RegisteredPlace | NatureofBusiness | ShareholdingRatio(%) | Votingrightsratio(%) | ModeofAcquisition | |
| Direct | Indirect | ||||||
| BeijingTianweikangOilDistributionCenterCo.,Ltd. | Beijing | Beijing | Warehousing | 100 | 100 | Mergerunderthesamecontrol | |
| BeijingGuchuanBreadFoodCo.,Ltd. | Beijing | Beijing | FoodProcessing | 100 | 100 | Mergerunderthesamecontrol | |
| ZhejiangXiaoWangZiFoodCo.,Ltd. | Hangzhou | Hangzhou | FoodProcessing | 17.6794 | 77.2072 | 94.8866 | Combinationnotundersamecontrol |
| HangzhouLin'anXiaotianshiFoodCo.,Ltd. | Hangzhou | Hangzhou | FoodProcessing | 17.6794 | 77.2072 | 94.8866 | Combinationnotundersamecontrol |
| LiaoningXiaoWangZiFoodCo.,Ltd. | Liaoning | Liaoning | FoodProcessing | 17.6794 | 77.2072 | 94.8866 | Combinationnotundersamecontrol |
| LinqingXiaoWangZiFoodCo.,Ltd. | Linqing | Linqing | FoodProcessing | 17.6794 | 77.2072 | 94.8866 | Combinationnotundersamecontrol |
| Lin'anChunmanyuanAgriculturalDevelopmentCo.,Ltd. | Hangzhou | Hangzhou | FoodProcessing | 17.6794 | 77.2072 | 94.8866 | Combinationnotundersamecontrol |
| Jingliang(Singapore)InternationalTradeCo.,Ltd. | Singapore | Singapore | Graintrade | 100 | 100 | Establishmentbyinvestment | |
| JingliangRuralComplexConstructionandOperations(Xinyi)Co.,Ltd. | Xinyi | Xinyi | Landremediation | 51 | 51 | Establishmentbyinvestment | |
| Jingliang(Caofeidian)AgriculturalDevelopmentCo.,Ltd. | Tangshan | Tangshan | Plantation | 51 | 51 | Establishmentbyinvestment | |
| Beijingjinglianggubioilandgreaseco.LTD | Beijing | Beijing | Grainandoiltrade | 100 | 100 | Establishmentbyinvestment | |
(3)Majornon-wholly-ownedsubsidiaries
NameofSubsidiary
| NameofSubsidiary | ShareholdingRatioofMinorityShareholders(%) | VotingrightsratioofMinorityShareholders(%) | ProfitAndLossAttributabletoMinorityShareholdersfortheCurrentPeriod | DividendsDistributedtoMinorityShareholdersfortheCurrentPeriod | BalanceofMinorityShareholder'sEquityattheEndofthePeriod |
| ZhejiangXiaoWangZiFoodCo.,Ltd. | 5.1134 | 5.1134 | 15,155,396.93 | 1,704,626.89 | 48,469,370.18 |
| Jingliang(Tianjin)GrainandOilIndustryCo.,Ltd. | 30 | 30 | 18,060,680.13 | 265,260,839.72 | |
| Jingliang(Hebei)OilIndustryCo.,Ltd. | 49 | 49 | 1,756,853.44 | 2,009,000.00 | 37,180,745.87 |
| Jingliang(Caofeidian)AgriculturalDevelopmentCo.,Ltd. | 49 | 49 | 1,162,543.53 | 25,196,306.01 |
(3)Importantfinancialinformationonmajornon-wholly-ownedsubsidiaries
| Items | EndingbalanceorAmountincurredinthecurrentperiod | |||
| ZhejiangXiaoWangZiFoodCo.,Ltd. | Jingliang(Tianjin)GrainandOilIndustryCo.,Ltd. | Jingliang(Hebei)OilIndustryCo.,Ltd. | Jingliang(Caofeidian)AgriculturalDevelopmentCo.,Ltd. | |
| CurrentAssets | 348,212,958.32 | 1,451,014,894.50 | 355,193,589.41 | 65,386,539.00 |
| Non-currentAssets | 636,041,329.78 | 784,620,786.80 | 83,905,315.98 | 267,113.52 |
| TotalAssets | 984,254,288.10 | 2,235,635,681.30 | 439,098,905.39 | 65,653,652.52 |
| CurrentLiabilities | 140,227,047.42 | 1,283,603,409.67 | 361,352,282.65 | 14,232,619.85 |
| Non-currentLiabilities | 20,656,022.86 | 67,829,472.58 | 1,867,549.53 | |
| TotalLiabilities | 160,883,070.28 | 1,351,432,882.25 | 363,219,832.18 | 14,232,619.85 |
| OperatingIncome | 817,382,788.30 | 3,947,727,557.55 | 353,156,192.23 | 37,886,609.79 |
| NetProfit(Loss) | 131,200,734.73 | 60,202,267.11 | 3,585,415.19 | 2,372,537.81 |
| TotalComprehensiveIncome | 131,200,734.73 | 60,202,267.11 | 3,585,415.19 | 2,372,537.81 |
| CashFlowfromOperatingActivities | 26,043,033.24 | -504,494,426.93 | -16,169,538.34 | -5,128,929.53 |
(Continued)
| Items | BeginningbalanceorAmountincurredinthepriorperiod |
ZhejiangXiaoWangZiFoodCo.,Ltd.
| ZhejiangXiaoWangZiFoodCo.,Ltd. | Jingliang(Tianjin)GrainandOilIndustryCo.,Ltd. | Jingliang(Hebei)OilIndustryCo.,Ltd. | Jingliang(Caofeidian)AgriculturalDevelopmentCo.,Ltd. | |
| CurrentAssets | 361,264,401.11 | 649,743,907.75 | 311,637,220.63 | 67,396,596.62 |
| Non-currentAssets | 509,389,952.91 | 818,631,677.47 | 87,738,015.01 | 556,027.91 |
| TotalAssets | 870,654,354.02 | 1,468,375,585.22 | 399,375,235.64 | 67,952,624.53 |
| CurrentLiabilities | 122,737,979.36 | 587,965,574.01 | 322,979,490.79 | 18,904,129.67 |
| Non-currentLiabilities | 22,409,424.73 | 56,409,479.27 | 2,086.83 | |
| TotalLiabilities | 145,147,404.09 | 644,375,053.28 | 322,981,577.62 | 18,904,129.67 |
| OperatingIncome | 851,434,597.05 | 3,430,996,815.48 | 568,997,293.50 | 22,700,740.36 |
| NetProfit(Loss) | 133,345,867.36 | 18,987,188.41 | 6,251,969.35 | -631,304.00 |
| TotalComprehensiveIncome | 133,345,867.36 | 18,987,188.41 | 6,251,969.35 | -631,304.00 |
| CashFlowfromOperatingActivities | 133,234,182.94 | 232,318,428.44 | 43,354,962.74 | 3,109,638.50 |
2.Transactioninasubsidiaryinwhichtheshareofownershipinthesubsidiarychangesandremainsincontrol
1.Explanationofthechangesinthesharesofowners'equityinthesubsidiaryWiththeapprovalofBeijingshounongFoodGroupCo.,Ltd.ontheplanofpurchasingassetsbycashandissuingsharesofHainanJingliangHoldingCo.,Ltd.(jingshounongfoodFa[2019]No.212),HainanJingliangHoldingCo.,Ltd.,BeijingJingliangFoodCo.,Ltd.andsixnaturalpersonsincludingWangYuecheng,ShuaiYiwu,YaoZishan,ZhuYanjun,HongmuqiangandQiuXiaobinmadepaymentTheshareholders'meetingofZhejianglittleprinceFoodCo.,Ltd.formedaresolutiononagreeingtotransfertheequity.JingliangHoldingpurchasedthe17.6794%equityofZhejiangLittlePrinceheldbyWangYuechengbyissuingshares,withthetransactionconsiderationofRMB249,017,319.14yuan.BasedontheissuingpriceofRMB6.05pershare,JingliangHoldingissued41,159,887sharestoWangYuecheng.
InApril2020,thecompanyissued41,159,887sharestoWangYuechengtopurchaseassetswiththeapprovalofthereplyonapprovingHainanJingliangHoldingCo.,Ltd.toissuesharestoWangYuecheng(ZJXK[2020]No.610)issuedbyChinaSecuritiesRegulatoryCommission.Aftertheissuance,thecompanydirectlyandindirectlyholds94.8866%equityofZhejianglittleprinceFoodCo.,Ltd.
2.Theimpactofthetransactiononminorityshareholders'equityandequityattributabletotheparentcompany
| Items | ZhejiangXiaoWangZiFoodCo.,Ltd. |
| Considerationforpurchasecost | 353,747,585.80 |
| Including:cash | 104,730,266.66 |
Items
| Items | ZhejiangXiaoWangZiFoodCo.,Ltd. |
| Fairvalueofnon-cashassets | 249,017,319.14 |
| Totalconsiderationforpurchasecost | 353,747,585.80 |
| Less:shareofnetassetsofsubsidiariescalculatedaccordingtotheproportionofequityacquired | 227,146,456.43 |
| Difference | 126,601,129.37 |
| Including:adjustmentofcapitalreserve | 126,601,129.37 |
| Adjustmentofsurplusreserve | |
| Adjustmentofundistributedprofit | 353,747,585.80 |
3.EquityinJointVenturesorAffiliates
1.ImportantJointVenturesorAffiliates
| NameofJointVentureorAffiliate | PrinciplePlaceofBusiness | RegisteredPlace | NatureofBusiness | ShareholdingRatio(%) | AccountingTreatmentMethodsforInvestmentinJointVenturesorAffiliates | |
| Direct | Indirect | |||||
| OneJointVentures | ||||||
| 1.BeijingZhengdaFeedCo.,Ltd. | Beijing | Beijing | Manufacturer | 50.00 | Equitymethod | |
| TwoAffiliates | ||||||
| 1.SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. | Tianjin | Tianjin | Transportationandwarehousing | 30.00 | Equitymethod | |
| 2.JingliangMissmeCateringManagement(Beijing)Co.,Ltd. | Beijing | Beijing | Manufacturer | 48.00 | Equitymethod | |
2.Importantfinancialinformationonmajorjointventures
| Item | EndingBalance/CurrentAmount | BeginningBalance/LastTermAmount |
| BeijingZhengdaFeedCo.,Ltd. | BeijingZhengdaFeedCo.,Ltd. | |
| Currentassets | 228,921,574.13 | 38,402,384.29 |
| Including:cashandcashequivalents | 95,186,696.60 | 2,851,108.24 |
| Non-currentassets | 25,478,642.09 | 166,838,127.64 |
| Totalassets | 254,400,216.22 | 205,240,511.93 |
| Currentliabilities | 73,979,867.51 | 65,443,549.59 |
| Non-currentliabilities | 4,076,166.52 |
Item
| Item | EndingBalance/CurrentAmount | BeginningBalance/LastTermAmount |
| BeijingZhengdaFeedCo.,Ltd. | BeijingZhengdaFeedCo.,Ltd. | |
| Totalliabilities | 78,056,034.03 | 65,443,549.59 |
| Minorityshareholder'sequity | ||
| Shareholders'equityattributabletotheparentcompany | 176,344,182.19 | 139,796,962.34 |
| Shareofnetassetsbasedonshareholdingratio | 88,172,091.10 | 69,898,481.17 |
| Adjustments | 2,652,807.39 | 2,918,088.13 |
| --Goodwill | ||
| --Unrealizedprofitsfrominternaltransactions | ||
| --Other | 2,652,807.39 | 2,918,088.13 |
| Bookvalueofequityinvestmentinjointventures | 90,824,898.49 | 72,816,569.30 |
| Fairvalueofequityinvestmentinjointventureswithopenoffers | ||
| Operatingincome | 336,626,475.66 | 269,935,049.46 |
| Financialcosts | -3,211,106.78 | -2,443,395.79 |
| Incometaxexpense | 11,205,730.33 | 5,150,946.69 |
| Netprofit | 36,873,259.85 | 15,189,299.51 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | -163,020.00 | 295,152.00 |
| Totalcomprehensiveincome | 36,710,239.85 | 15,484,451.51 |
| Dividendsreceivedfromjointventuresinthecurrentperiod |
3.Importantfinancialinformationonmajoraffiliates
| Item | EndingBalance/CurrentAmount | BeginningBalance/LastTermAmount |
| SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. | SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. | |
| Currentassets | 87,560,108.46 | 97,971,129.85 |
| Non-currentassets | 407,888,087.68 | 384,616,624.25 |
| Totalassets | 495,448,196.14 | 482,587,754.10 |
| Currentliabilities | 24,167,311.59 | 10,362,807.69 |
| Non-currentliabilities | 72,609,829.76 | 80,103,443.80 |
| Totalliabilities | 96,777,141.35 | 90,466,251.49 |
| Minorityshareholder'sequity |
Item
| Item | EndingBalance/CurrentAmount | BeginningBalance/LastTermAmount |
| SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. | SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. | |
| Shareholders'equityattributabletotheparentcompany | 398,671,054.79 | 392,121,502.61 |
| Shareofnetassetsbasedonshareholdingratio | 119,601,316.43 | 117,636,450.78 |
| Adjustments | ||
| --Goodwill | ||
| --Unrealizedprofitsfrominternaltransactions | ||
| --Others | ||
| Bookvalueofequityinvestmentinaffiliates | 119,601,316.43 | 117,636,450.78 |
| Fairvalueofequityinvestmentinaffiliateswithopenoffers | ||
| Operatingincome | 36,413,675.87 | 28,173,217.37 |
| Netprofit | 6,549,552.18 | 496,163.17 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 6,549,552.18 | 496,163.17 |
| Dividendsreceivedfromaffiliatesinthecurrentperiod |
IX.RisksRelatedtoFinancialInstrumentsTheCompany'sprincipalfinancialinstrumentsincludeequityinvestment,creditors'investment,borrowing,accountsreceivable,accountspayable,etc.TheprimarypurposeofthesefinancialinstrumentsistofinancetheoperationsoftheCompany.TheCompanyhasavarietyofotherfinancialassetsandliabilitiesdirectlyarisingfromitsoperations,suchasaccountsreceivableandaccountspayable.
ThemainriskscausedbytheCompany'sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk.
1.Classificationoffinancialinstruments
(1)BookvalueofvariousfinancialassetsonthebalancesheetdateA.December31,2020
| Financialassetitems | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvalueandthechangesrecordedincurrentprofitsandlosses | Financialassetsmeasuredatfairvalueandthechangesrecordedinothercomprehensiveincome | Total |
| Monetaryfunds | 335,466,169.61 | 335,466,169.61 | ||
| Transactionalfinancialassets | 63,478,071.73 | 63,478,071.73 | ||
| Derivative |
Financialassetitems
| Financialassetitems | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvalueandthechangesrecordedincurrentprofitsandlosses | Financialassetsmeasuredatfairvalueandthechangesrecordedinothercomprehensiveincome | Total |
| financialassets | ||||
| Notesreceivables | 456,565.85 | 456,565.85 | ||
| Accountsreceivables | 92,245,667.60 | 92,245,667.60 | ||
| Otherreceivables | 541,905,656.97 | 541,905,656.97 | ||
| Investmentinotherequityinstruments | 20,000,000.00 | 20,000,000.00 | ||
| Othernon-currentassets | 319,739,581.67 | 319,739,581.67 |
B.December31,2019
| Financialassetitems | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvalueandthechangesrecordedincurrentprofitsandlosses | Financialassetsmeasuredatfairvalueandthechangesrecordedinothercomprehensiveincome | Total |
| Monetaryfunds | 557,168,512.39 | 557,168,512.39 | ||
| Transactionalfinancialassets | 161,300,000.00 | 161,300,000.00 | ||
| Derivativefinancialassets | 88,792,254.00 | 88,792,254.00 | ||
| Notesreceivables | ||||
| Accountsreceivables | 80,743,986.81 | 80,743,986.81 | ||
| Otherreceivables | 19,220,097.34 | 19,220,097.34 | ||
| Investmentinotherequityinstruments | 20,000,000.00 | 20,000,000.00 | ||
| Othernon-currentassets | 151,005,300.00 | 151,005,300.00 |
(2)BookvalueofvariousfinancialliabilitiesonthebalancesheetdateA.December31,2020
| Financialliabilityitems | Financialliabilitiesmeasuredatfairvalueandchangesincludedincurrentprofitsandlosses | Otherfinancialliability | Total |
| Shorttermloans | 1,497,414,079.05 | 1,497,414,079.05 | |
| Derivativefinancialliability | 371,219,136.84 | 371,219,136.84 | |
| Accountspayable | 75,384,075.39 | 75,384,075.39 | |
| OtherPayables | 72,292,881.24 | 72,292,881.24 |
B.December31,2019
Financialliabilityitems
| Financialliabilityitems | Financialliabilitiesmeasuredatfairvalueandchangesincludedincurrentprofitsandlosses | Otherfinancialliability | Total |
| Shorttermloans | 1,329,238,701.60 | 1,329,238,701.60 | |
| Derivativefinancialliability | |||
| Accountspayable | 130,568,413.43 | 130,568,413.43 | |
| OtherPayables | 96,171,396.23 | 96,171,396.23 |
2.CreditRiskOnDecember31,2020,thelargestcreditriskexposurethatmaycausefinanciallosstotheCompanymainlycomesfromthelossonfinancialassetsoftheCompanyduetothefailureoftheotherpartytoperformitsobligations,including:
Bookvalueoffinancialassetsrecognizedintheconsolidatedbalancesheet;forafinancialinstrumentmeasuredatfairvalue,itsbookvaluereflectsitsriskexposureinsteadoftheirbiggestriskexposure,anditsbiggestriskexposuremayvarywiththechangeofitsfuturefairvalue.
Inordertoreducethecreditrisk,theCompanysetsrelevantpoliciestocontrolitsexposure,setscorrespondingcreditperiodsbasedoncustomer’sfinancialposition,possibilityofobtainingguaranteesfromthirdparties,creditrecordsandotherfactorssuchascurrentmarketconditionsandothercreditqualificationsforcustomerassessment,andimplementsothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverduecredits.Inaddition,theCompanyreviewsthecollectionofindividualaccountreceivablesoneachbalancesheetdateinordertomakesufficientprovisionforbaddebtsforcollectableamounts.Therefore,theCompany'smanagementbelievesthattheCompany'screditriskhasbeengreatlyreduced.
TheliquidityfundsoftheCompanyaredepositedinbankswithhighcreditrating,sothecreditriskofliquidityfundsislow.
3.LiquidityRisk
Whenmanagingliquidityrisk,theCompanykeepsandmonitorsadequatecashandcashequivalentsapprovedbyitsmanagementinordertomeettheCompany'sbusinessneedsandreducetheinfluencesofcashflowfluctuations.TheCompany'smanagementmonitorstheuseofbankloansandensurestheperformanceofloanagreements.
Maturityanalysisoffinancialliabilitiesintermsofundiscountedcontractualcashflows:
| Item | December31,2020 | |||
| WithinOneYear | 1To5Years | AboveFiveYears | Total | |
| Shorttermloans | 1,497,414,079.05 | 1,497,414,079.05 | ||
| Derivativefinancialliability | 371,219,136.84 | 371,219,136.84 | ||
| Accountspayable | 72,075,894.39 | 3,308,181.00 | 75,384,075.39 | |
| OtherPayables | 72,292,881.24 | 72,292,881.24 | ||
(Continued)
| Item | December31,2019 | |||
| WithinOneYear | 1To5Years | AboveFiveYears | Total | |
| Shorttermloans | 1,329,238,701.60 | 1,329,238,701.60 | ||
| Derivativefinancialliability | ||||
Item
| Item | December31,2019 | |||
| WithinOneYear | 1To5Years | AboveFiveYears | Total | |
| Accountspayable | 130,568,413.43 | 130,568,413.43 | ||
| OtherPayables | 96,171,396.23 | 96,171,396.23 | ||
4.MarketriskMarketriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetothechangeofmarketprice.Marketriskmainlyincludesinterestraterisk,foreignexchangeriskandotherpricerisks,suchasequityinstrumentinvestmentpricerisk.
(1)InterestRateRisk
TheCompany'sinterestrateriskmainlyarisesfrombankloans.ThefinancialliabilitiesatfloatinginterestratesbringtheCompanytheinterestrateriskoncashflow,whilethefinancialliabilitiesatfixedinterestratesbringtheCompanytheinterestrateriskonfairvalue.TheCompanydecidestherelativeproportionoffixedinterestratecontractsandfloatinginterestratecontractsaccordingtothecurrentmarketenvironment.AsofDecember31,2020,theCompany'sinterest-bearingliabilitiesunderfloatingratecontractsdenominatedinRMBamountedtoRMB319,687,500.00,andthoseunderfixedratecontractsdenominatedinRMBamountedtoRMB1,176,404,482.00.
(2)ExchangeRateRiskTheCompany'sexposuretoforeignexchangerisksisprimarilyrelatedtotheCompany'soperatingactivities(whenrevenuesandexpendituresaresettledinforeigncurrenciesotherthantheCompany'saccountingstandardcurrency)anditsnetinvestmentsinitsoverseassubsidiaries.TheCompany'sexposuretoforeignexchangerisksismainlyrelatedtoUSdollars.ExceptthatsomeoftheCompany'ssubsidiariespurchaseandsellinUSdollars,othermajorbusinessactivitiesoftheCompanyarepricedandsettledinRMB.AsatDecember31,2020,theCompany'sassetsandliabilitiesareinRMB,excepttheassetsorliabilitiesdescribedinthetablebelowareinUSdollars.TheforeignexchangerisksarisingfromtheassetsandliabilitiesofsuchforeigncurrencybalancesmayhaveanimpactontheCompany'soperatingresults.
| Items | EndingBalance | BeginningBalance |
| Monetaryfunds | 5,056,624.13 | 6,768,083.00 |
| Accountsreceivable | 1,044,832.24 | 1,590,894.85 |
| Accountspayable | 134,399.21 | |
| OtherPayables | 381,054.16 |
Note:TheCompanypayscloseattentiontotheimpactofexchangeratefluctuationsontheCompany.Thecompanyadoptssensitivityanalysistechnologytoanalyzethepossibleimpactofreasonableandpossiblechangesofriskvariablesoncurrentprofitandlossorowner'sequity.Asanyriskvariablerarelychangesinisolation,andthecorrelationbetweenvariableswillhaveasignificanteffectonthefinalimpactamountofariskvariablechange,thefollowingcontentiscarriedoutundertheassumptionthatthechangeofeachvariableisindependent.
Ontheassumptionthatforeigncurrencyassetsandforeigncurrencyliabilitiesremainrelativelystableandothervariablesremainunchanged,theafter-taximpactofpossiblereasonablechangesinexchangerateoncurrentprofitsandlossesandrightsandinterestsisasfollows:
| Item | Currentperiod |
[USdollar]ExchangerateIncrease/(decrease)
| [USdollar]ExchangerateIncrease/(decrease) | Grossprofit/netprofitincrease/(decrease) | Increase/(decrease)inshareholders'equity | |
| TheyuandepreciatedagainsttheUSdollar | 5% | 286,020.11 | 286,020.11 |
| TheyuanappreciatedagainsttheUSdollar | -5% | -286,020.11 | -286,020.11 |
| Item | Priorperiod | ||
| [USdollar]ExchangerateIncrease/(decrease) | Grossprofit/netprofitincrease/(decrease) | Increase/(decrease)inshareholders'equity | |
| TheyuandepreciatedagainsttheUSdollar | 5% | 411,217.15 | 411,217.15 |
| TheyuanappreciatedagainsttheUSdollar | -5% | -411,217.15 | -411,217.15 |
X.DisclosureofFairValues
1.Fairvaluesofassetsandliabilitiesmeasuredatfairvalueattheendoftheperiod
| Item | FairValuesattheEndofthePeriod | |||
| FirstLevelFairValueMeasurement | SecondLevelFairValueMeasurement | ThirdLevelFairValueMeasurement | Total | |
| One.Continuousfairvaluemeasurement | ||||
| Ⅰ.Transactionalfinancialassets | 63,478,071.73 | 63,478,071.73 | ||
| 1.Financialassetsthataremeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitsandlosses | 63,478,071.73 | 63,478,071.73 | ||
| (1)Investmentindebtinstruments | 63,478,071.73 | 63,478,071.73 | ||
| (2)Investmentinequityinstruments | ||||
| (3)Derivativefinancialassets | ||||
| 2.Financialassetsdesignatedasfairvaluethroughprofitorloss | ||||
| (1)Investmentindebtinstruments | ||||
| (2)Investmentinequityinstruments | ||||
| (3)Others | ||||
| Ⅱ.Otherdebtinvestment | ||||
| Ⅲ.Investmentinotherequityinstruments | 20,000,000.00 | 20,000,000.00 | ||
| Totalassetscontinuouslymeasuredatfairvalue | 63,478,071.73 | 20,000,000.00 | 83,478,071.73 | |
| Ⅵ.Transactionalfinancialliabilities | 371,219,136.84 | 371,219,136.84 | ||
| 1.Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 371,219,136.84 | 371,219,136.84 | ||
Item
| Item | FairValuesattheEndofthePeriod | |||
| FirstLevelFairValueMeasurement | SecondLevelFairValueMeasurement | ThirdLevelFairValueMeasurement | Total | |
| Including:transactionalbondsissued | ||||
| derivativefinancialliability | 371,219,136.84 | 371,219,136.84 | ||
| others | ||||
| 2.Financialliabilitiesdesignatedasfairvaluethroughprofitorloss | ||||
| Totalliabilitiescontinuouslymeasuredatfairvalue | 371,219,136.84 | 371,219,136.84 | ||
2.Basisfordeterminingmarketpricesofcontinuousandnon-continuousfirstlevelfairvaluemeasurementitems
TheCompanymakesoffersforfirstlevelfairvaluemeasurementaccordingtoopencontractsofthefuturesexchangeandthequotefromthebankonfinancialproductattheendoftheperiod.
3.Continuousandnon-continuousthird-levelfairvaluemeasurementitemsadoptvaluationtechniquesandqualitativeandquantitativeinformationofimportantparameters
Thecompany‘sinvestmentinotherequityinstrumentsofthethirdlevelfairvaluemeasurementprojectisthe”threenoes“equityinvestmentthatwithoutcontrol,jointcontrolandsignificantinfluenceheldbythecompany.Onthebasisofanalyzingtheoperationstatusoftheinvestedenterpriseandcombiningwithrelevantsituations,thecompanytakestheinvestmentcostasthefairvalueofotherequityinstrumentinvestmentformeasurementattheendoftheperiod.
XI.RelatedPartiesandRelated-PartyTransactions
1.Identificationcriteriaofrelatedparties
Ifonepartycontrols,jointlycontrolsorexertssignificantinfluenceontheotherparty,andtwoormorepartiesarecontrolled,jointlycontrolledorsignificantlyinfluencedbythesameparty,theyconstituterelatedparties.
2.ParentCompanyoftheCompany
| NameofParentCompany | Companytype | RegisteredPlace | Legalrepresentative | NatureofBusiness | RegisteredCapital(tenthousandYuan) |
| BeijingGrainGroupCo.Ltd. | Whollystate-ownedenterprise | Beijing | WangZhenzhong | InvestmentManagement | 90,000.00 |
(Continued)
| ProportionofSharesHeldbyParentCompanyintheCompany(%) | ProportionofVotingPowerHeldbyParentCompanyintheCompany(%) | TheultimatecontrollingpartyoftheCompany | Organizationcode |
| 39.68 | 39.68 | BeijingState-ownedCapitalOperationandManagementCenter | 683551038 |
3.SubsidiariesoftheCompany
See1.EquityinSubsidiariesunderSectionVIIIoftheNotesfordetails.
4.JointVenturesandAffiliatesoftheCompany
See3.EquityinJointVenturesorAffiliatesunderSectionVIIIoftheNotesfordetails.
5.OtherRelatedParties
NameofOtherRelatedParty
| NameofOtherRelatedParty | RelationshipwiththeCompany |
| BeijingGuchunFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingSanyuanFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingYueshengzhaiHalalFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingershangdahongmenMeatFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| ShandongFukuanBioengineeringCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingGuchunriceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingershangWangzhiheFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingheiliuanimalhusbandrytechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingYanqiYueshengzhaiHalalFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| HebeiLuanpingHuaduFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingLiubijuFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingershangMoqiZhonghongFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingershangJinghuaTeaCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingHuayuFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingHuaduliquorMarketingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBeishuiFoodIndustryCo.,Ltd | Controlledbytheultimatecontrollingparty |
| ChengdeSanyuanVenusduckindustryCo.,Ltd | Controlledbytheultimatecontrollingparty |
| Beijingjinggraine-commerceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingErShangLongheFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingChangyangfarmCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijinghundredyearoldLiyuanEcologicalAgricultureCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingErShangpalaceYifuFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| FeedbranchofBeijingSanyuanSeedIndustryTechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingshounongSupplyChainManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| HebeishounongModernAgriculturalTechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingHaidianXijiaograinandoilsupplystationCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingZhujungrainandoilsupplyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingfirstagriculturalconsumptionpovertyalleviationandEntrepreneurshipCenterCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingChildrensoldiersgrainandoilsupplyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| LiangguangrainandoilsupplystationofBeijing | Controlledbytheultimatecontrollingparty |
| BeijingmaliandouspecialsupplystationCo.,Ltd | Controlledbytheultimatecontrollingparty |
NameofOtherRelatedParty
| NameofOtherRelatedParty | RelationshipwiththeCompany |
| BeijingjunchengyuangrainandoilpurchaseandMarketingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingfoodsupplyofficeNo.34supplydepartmentCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingLongqingXiadumilitarygrainsupplyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingbaijiayiFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingHongyuanLijungrainandoilsupplyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDeshengHotelCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainRealEstateCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainLogisticsCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggraincanalgrainandOilTradeCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingShuangtaGreenValleyAgricultureCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingsouthernsuburbagriculturalproductionandManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDongchengsugarindustrytobaccoandWineCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingNorthBeijingsugarwinesalesCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingshounongcommercialchainCo.,Ltd.Hebeixiong'anbranch | Controlledbytheultimatecontrollingparty |
| BeijingSanyuanTaxiCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBusinessSchool | Controlledbytheultimatecontrollingparty |
| BeijingmaisuiHotelManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingshounongXiangshanConferenceCenterCo.,Ltd | Controlledbytheultimatecontrollingparty |
| Beijingsugarindustrytobacco&WineGroupCo.,Ltd | Controlledbytheultimatecontrollingparty |
| Beijinggrain(Tianjin)e-commerceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingAutomobileServiceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingshounongFoodGroupFinanceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingdahongmengrainstorageCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDongjiaofarmCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingaquaticproductsCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBeijingautomobiledrivingtechnicalschool | Controlledbytheultimatecontrollingparty |
| Beijinggrain(Tianjin)TradeDevelopmentCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingJingliangXindaPropertyManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBeishuiJialunwaterproductsmarketCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingXichengsugarindustrytobaccoandWineCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainIndustrialAssetManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingErShangFuyueFoodCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingYanqingfarmCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingJingliangTaiheRealEstateCo.,Ltd | Controlledbytheultimatecontrollingparty |
NameofOtherRelatedParty
| NameofOtherRelatedParty | RelationshipwiththeCompany |
| BeijingfirstagriculturalPingguagriculturalscienceandtechnologyinnovationinvestmentandDevelopmentCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingShunyigrainandOilCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingLongshengZhongwangbreakfastCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingshounongAnimalHusbandryDevelopmentCo.,Ltd | Controlledbytheultimatecontrollingparty |
| TianjinHongdainternationalfreightforwardingcompany | Controlledbytheultimatecontrollingparty |
| BeijingLanfengVegetableDistributionCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingJingliangTaiyuRealEstateCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingxingfashionTradeCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingzhongdairichPropertyManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingHuachengTradingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| Beijinghaipetrochemical(Tianjin)Co.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingdaimoflourCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainTaixingRealEstateCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingmilkCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijinghongbaoyuanTradingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingGrainGroupCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDongfengInternationalSportsCultureCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijinggraincenturycloudTechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| ChinaOceanRealEstateCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingSanyuanOilCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingsidaokouaquaticproductsCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingYongheXinchenggrainandoilsupplyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingLongdeBusinessManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainShengyuangrainandOilSalesCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDaxingNationalFoodReserveCo.,Ltd | Controlledbytheultimatecontrollingparty |
| ChinaMeatFoodResearchCenter | Controlledbytheultimatecontrollingparty |
| BeijingPinggugrainandoilindustryandTradeCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingAcademyofFoodScience | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainBiotechnologyIndustryCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingzhibohuiArchitecturalDesignInstituteCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBeishuiYongxingwaterproductsSalesCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingershangGroupCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingErShangYiheSunshinePropertyManagementCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingBeijiaofarmCo.,Ltd | Controlledbytheultimatecontrollingparty |
NameofOtherRelatedParty
| NameofOtherRelatedParty | RelationshipwiththeCompany |
| BeijingGreatWallDanyuanimalproductsCo.,Ltd | Controlledbytheultimatecontrollingparty |
| Beijinggrainpointtonet(Beijing)commerceCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingjinggrainDagugrainandOilTradeCo.,Ltd | Controlledbytheultimatecontrollingparty |
| ShanghaishounongInvestmentHoldingCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingDaxingnationalgrainstorageCo.,Ltd | Controlledbytheultimatecontrollingparty |
| BeijingNanyuanvegetableoilfactoryCo.,Ltd | Controlledbytheultimatecontrollingparty |
| FeedbranchofBeijingSanyuanSeedIndustryTechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
| HebeishounongModernAgriculturalTechnologyCo.,Ltd | Controlledbytheultimatecontrollingparty |
6.Related-partyTransactions
1.Related-partytransactionsforpurchasingandsalinggoodsandprovisionandacceptanceoflaborservices
(1)Purchaseofgoodsoracceptanceoflaborservices
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingGuchunFoodCo.,Ltd | Purchaseofgoods | 13,155,894.06 | 13,274,529.45 |
| BeijingSanyuanFoodCo.,Ltd | Purchaseofgoods | 1,400,066.43 | 316,219.35 |
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | Purchaseofgoods | 524,008.25 | 158,104.64 |
| BeijingYueshengzhaiHalalFoodCo.,Ltd | Purchaseofgoods | 461,453.98 | 111,127.87 |
| BeijingershangdahongmenMeatFoodCo.,Ltd | Purchaseofgoods | 403,578.27 | 101,205.53 |
| ShandongFukuanBioengineeringCo.,Ltd | Purchaseofgoods | 164,147.79 | 1,218,650.72 |
| BeijingGuchunriceCo.,Ltd | Purchaseofgoods | 136,622.01 | 1,644,568.82 |
| BeijingershangWangzhiheFoodCo.,Ltd | Purchaseofgoods | 110,429.56 | 87,887.76 |
| BeijingheiliuanimalhusbandrytechnologyCo.,Ltd | Purchaseofgoods | 99,883.20 | |
| BeijingYanqiYueshengzhaiHalalFoodCo.,Ltd | Purchaseofgoods | 49,702.65 | |
| HebeiLuanpingHuaduFoodCo.,Ltd | Purchaseofgoods | 29,341.09 | |
| BeijingLiubijuFoodCo.,Ltd | Purchaseofgoods | 24,407.26 | 69,868.58 |
| BeijingershangMoqiZhonghongFoodCo.,Ltd | Purchaseofgoods | 23,314.69 | 3,173.10 |
| BeijingershangJinghuaTeaCo.,Ltd | Purchaseofgoods | 21,165.31 | |
| BeijingHuayuFoodCo.,Ltd | Purchaseofgoods | 15,250.80 |
RelatedParty
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | Purchaseofgoods | 10,912.84 | 31,796.95 |
| BeijingHuaduliquorMarketingCo.,Ltd | Purchaseofgoods | 9,557.52 | |
| BeijingBeishuiFoodIndustryCo.,Ltd | Purchaseofgoods | 6,466.97 | 23,237.58 |
| ChengdeSanyuanJinxingduckindustryCo.,Ltd | Purchaseofgoods | 6,194.50 | |
| BeijingJingliange-commerceCo.,Ltd | Purchaseofgoods | 4,424.78 | |
| BeijingershangLongheFoodCo.,Ltd | Purchaseofgoods | 1,781.15 | 35,615.04 |
| BeijingChangyangfarmCo.,Ltd | Purchaseofgoods | 1,470.00 | |
| BeijingBainianLiyuanEcologicalAgricultureCo.,Ltd | Purchaseofgoods | 1,210.00 | |
| BeijingershanggongyifuFoodCo.,Ltd | Purchaseofgoods | 92.04 | 70,286.43 |
| BeijingshounongFoodGroupCo.,Ltd | Displayfee | 600,000.00 |
(2)Saleofgoods/provisionoflaborservices
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingershangWangzhiheFoodCo.,Ltd | Saleofgoods | 71,047,922.42 | 7,384,328.98 |
| FeedbranchofBeijingSanyuanSeedIndustryTechnologyCo.,Ltd | Saleofgoods | 31,339,925.94 | 21,335,658.32 |
| BeijingshounongSupplyChainManagementCo.,Ltd | Saleofgoods | 29,226,266.13 | 2,784,256.97 |
| HebeishounongModernAgriculturalTechnologyCo.,Ltd | Saleofgoods | 14,233,603.95 | 14,391,575.42 |
| BeijingHaidianXijiaograinandoilsupplystationCo.,Ltd | Saleofgoods | 15,886,751.23 | 12,209,419.51 |
| BeijingGuchunFoodCo.,Ltd | Saleofgoods | 5,605,452.37 | 2,521,048.16 |
| BeijingZhujungrainandoilsupplyCo.,Ltd | Saleofgoods | 5,097,181.62 | 6,889,083.61 |
| BeijingfirstagriculturalconsumptionpovertyalleviationandEntrepreneurshipCenterCo.,Ltd | Saleofgoods | 2,916,212.83 | |
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | Saleofgoods | 4,114,303.41 | 6,752,881.06 |
| BeijingChildrensoldiersgrainandoilsupplyCo.,Ltd | Saleofgoods | 3,366,280.71 | 3,366,310.21 |
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | Saleofgoods | 2,200,674.09 | 2,623,304.40 |
RelatedParty
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| LiangguangrainandoilsupplystationofBeijing | Saleofgoods | 2,706,388.99 | |
| BeijingmaliandouspecialsupplystationCo.,Ltd | Saleofgoods | 2,757,335.78 | 3,139,992.55 |
| BeijingjunchengyuangrainandoilpurchaseandMarketingCo.,Ltd | Saleofgoods | 1,986,543.12 | 1,881,534.61 |
| BeijingfoodsupplyofficeNo.34supplydepartmentCo.,Ltd | Saleofgoods | 3,381,064.38 | 1,509,710.74 |
| BeijinghuaduyukoupoultryCo.,Ltd | Saleofgoods | 1,539,631.42 | |
| BeijingLongqingXiadumilitarygrainsupplyCo.,Ltd | Saleofgoods | 859,559.64 | 363,175.15 |
| BeijingGuchunriceCo.,Ltd | Saleofgoods | 803,839.21 | 713,247.71 |
| BeijingbaijiayiFoodCo.,Ltd | Saleofgoods | 478,710.09 | 537,436.35 |
| BeijingHongyuanLijungrainandoilsupplyCo.,Ltd | Saleofgoods | 735,871.56 | 635,017.51 |
| BeijingSanyuanFoodCo.,Ltd | Saleofgoods | 470,695.16 | 418,081.94 |
| BeijingDeshengHotelCo.,Ltd | Saleofgoods | 418,648.14 | |
| BeijingJingliange-commerceCo.,Ltd | Saleofgoods | 711,015.24 | 1,011,202.58 |
| BeijingjinggrainRealEstateCo.,Ltd | Saleofgoods | 272,473.94 | 260,904.42 |
| BeijingjinggrainLogisticsCo.,Ltd | Saleofgoods | 314,747.04 | 46,842.97 |
| BeijingjinggraincanalgrainandOilTradeCo.,Ltd | Saleofgoods | 214,732.03 | 233,836.12 |
| HuairouBrewingFactoryofBeijingLiubijuFoodCo.,Ltd | Saleofgoods | 174,678.90 | |
| BeijingShuangtaGreenValleyAgricultureCo.,Ltd | Saleofgoods | 126,330.20 | |
| BeijingsouthernsuburbagriculturalproductionandManagementCo.,Ltd | Saleofgoods | 75,831.20 | |
| BeijingDongchengsugarindustrytobaccoandWineCo.,Ltd | Saleofgoods | 47,375.16 | |
| BeijingNorthBeijingsugarwinesalesCo.,Ltd | Saleofgoods | 56,197.83 | 69,201.68 |
| BeijingshounongcommercialchainCo.,Ltd.Hebeixiong'anbranch | Saleofgoods | 41,834.86 | |
| BeijingSanyuanTaxiCo.,Ltd | Saleofgoods | 40,733.94 | |
| BeijingBusinessSchool | Saleofgoods | 38,680.73 | |
| BeijingmaisuiHotelManagementCo.,Ltd | Saleofgoods | 33,636.44 | 31,872.10 |
| BeijingshounongXiangshanConferenceCenterCo.,Ltd | Saleofgoods | 30,227.89 | 64,267.89 |
| Beijingsugarindustrytobacco&WineGroupCo.,Ltd | Saleofgoods | 23,759.35 | |
| Beijinggrain(Tianjin)e-commerceCo.,Ltd | Saleofgoods | 40,309.51 | 113,831.89 |
| BeijingershangLongheFoodCo.,Ltd | Saleofgoods | 17,860.54 | 30,510.27 |
| BeijingershanggongyifuFoodCo.,Ltd | Saleofgoods | 17,256.88 | 89,716.61 |
RelatedParty
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingAutomobileServiceCo.,Ltd | Saleofgoods | 17,064.22 | |
| BeijingshounongFoodGroupFinanceCo.,Ltd | Saleofgoods | 16,517.02 | |
| BeijingdahongmengrainstorageCo.,Ltd | Saleofgoods | 13,694.23 | 6,789.00 |
| BeijingDongjiaofarmCo.,Ltd | Saleofgoods | 12,235.66 | |
| BeijingaquaticproductsCo.,Ltd | Saleofgoods | 11,908.26 | 8,678.51 |
| BeijingBeijingautomobiledrivingtechnicalschool | Saleofgoods | 11,681.42 | |
| Beijinggrain(Tianjin)TradeDevelopmentCo.,Ltd | Saleofgoods | 10,560.00 | |
| BeijingJingliangXindaPropertyManagementCo.,Ltd | Saleofgoods | 9,993.09 | 12,120.37 |
| BeijingBeishuiJialunwaterproductsmarketCo.,Ltd | Saleofgoods | 7,871.56 | 4,244.86 |
| BeijingXichengsugarindustrytobaccoandWineCo.,Ltd | Saleofgoods | 7,678.90 | |
| BeijingjinggrainIndustrialAssetManagementCo.,Ltd | Saleofgoods | 7,032.19 | 3,669.71 |
| BeijingErShangFuyueFoodCo.,Ltd | Saleofgoods | 6,844.03 | |
| BeijingYanqingfarmCo.,Ltd | Saleofgoods | 5,504.58 | 3,000.00 |
| BeijingJingliangTaiheRealEstateCo.,Ltd | Saleofgoods | 4,441.36 | 4,489.04 |
| BeijingfirstagriculturalPingguagriculturalscienceandtechnologyinnovationinvestmentandDevelopmentCo.,Ltd | Saleofgoods | 4,441.36 | |
| BeijingShunyigrainandOilCo.,Ltd | Saleofgoods | 4,353.98 | |
| BeijingLongshengZhongwangbreakfastCo.,Ltd | Saleofgoods | 3,697.25 | 1,830.27 |
| BeijingshounongAnimalHusbandryDevelopmentCo.,Ltd | Saleofgoods | 3,522.95 | 13,002.86 |
| TianjinHongdainternationalfreightforwardingcompany | Saleofgoods | 3,520.00 | |
| BeijingLanfengVegetableDistributionCo.,Ltd | Saleofgoods | 3,035.32 | |
| BeijingJingliangTaiyuRealEstateCo.,Ltd | Saleofgoods | 2,960.91 | 2,244.51 |
| BeijingxingfashionTradeCo.,Ltd | Saleofgoods | 2,697.25 | 16,438.70 |
| BeijingLiubijuFoodCo.,Ltd | Saleofgoods | 2,522.94 | 2,727.27 |
| BeijingzhongdairichPropertyManagementCo.,Ltd | Saleofgoods | 2,311.93 |
RelatedParty
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingHuachengTradingCo.,Ltd | Saleofgoods | 2,295.42 | 5,863.63 |
| Beijinghaipetrochemical(Tianjin)Co.,Ltd | Saleofgoods | 2,112.00 | |
| BeijingshounongFoodGroupCo.,Ltd | Saleofgoods | 4,346.76 | |
| BeijingdaimoflourCo.,Ltd | Saleofgoods | 1,850.57 | 2,244.51 |
| BeijingjinggrainTaixingRealEstateCo.,Ltd | Saleofgoods | 1,850.57 | |
| BeijingYueshengzhaiHalalFoodCo.,Ltd | Saleofgoods | 1,834.86 | |
| BeijingmilkCo.,Ltd | Saleofgoods | 1,785.32 | 2,400.00 |
| BeijinghongbaoyuanTradingCo.,Ltd | Saleofgoods | 1,656.64 | |
| BeijingGrainGroupCo.,Ltd | Saleofgoods | 1,651.37 | |
| BeijingDongfengInternationalSportsCultureCo.,Ltd | Saleofgoods | 1,610.09 | |
| BeijinggraincenturycloudTechnologyCo.,Ltd | Saleofgoods | 740.24 | |
| ChinaOceanRealEstateCo.,Ltd | Saleofgoods | 366.97 | |
| BeijingSanyuanOilCo.,Ltd | Saleofgoods | 286.24 | |
| BeijingsidaokouaquaticproductsCo.,Ltd | Saleofgoods | 161.47 | |
| BeijingYongheXinchenggrainandoilsupplyCo.,Ltd | Saleofgoods | 1,011,374.44 | |
| BeijingLongdeBusinessManagementCo.,Ltd | Saleofgoods | 77,727.27 | |
| BeijingjinggrainShengyuangrainandOilSalesCo.,Ltd | Saleofgoods | 72,318.18 | |
| BeijingDaxingNationalFoodReserveCo.,Ltd | Saleofgoods | 18,927.28 | |
| BeijingshounongFoodGroupCo.,Ltd | Saleofgoods | 14,954.20 | |
| ChinaMeatFoodResearchCenter | Saleofgoods | 11,348.18 | |
| BeijingPinggugrainandoilindustryandTradeCo.,Ltd | Saleofgoods | 2,672.73 | |
| BeijingAcademyofFoodScience | Saleofgoods | 140,000.00 | 6,708.36 |
| BeijingjinggrainBiotechnologyIndustryCo.,Ltd | Saleofgoods | 8,886.11 | |
| BeijingSanyuanOilCo.,Ltd | Saleofgoods | 1,428.60 | |
| BeijingzhibohuiArchitecturalDesignInstituteCo.,Ltd | Saleofgoods | 9,545.45 | |
| BeijingBeishuiYongxingwaterproductsSalesCo.,Ltd | Saleofgoods | 780.53 | |
| BeijingershangdahongmenMeatFoodCo.,Ltd | Saleofgoods | 2,800.00 |
RelatedParty
| RelatedParty | Related-partyTransaction | CurrentAmount | LastTermAmount |
| BeijingershangGroupCo.,Ltd | Saleofgoods | 1,506.90 | |
| BeijingErShangYiheSunshinePropertyManagementCo.,Ltd | Saleofgoods | 9,688.07 | |
| BeijingBeijiaofarmCo.,Ltd | Saleofgoods | 4,896.79 | |
| BeijingGreatWallDanyuanimalproductsCo.,Ltd | Saleofgoods | 2,877.05 | |
| Beijinggrainpointtonet(Beijing)commerceCo.,Ltd | Saleofgoods | 2,025.69 | |
| BeijingGuchunFoodCo.,Ltd | Provisionofservices | 98,481.29 | |
| BeijingAcademyofFoodScience | Provisionofservices | 141,633.74 | 48,207.55 |
| BeijingGrainGroupCo.,Ltd | Provisionofservices | 574,150.93 | |
| BeijingshounongFoodGroupCo.,Ltd | Provisionofservices | 799,999.97 | |
| BeijingjinggrainDagugrainandOilTradeCo.,Ltd | Providetechnicalservices | 245,377.35 | |
| ShanghaishounongInvestmentHoldingCo.,Ltd | Storagefee | 23,867.92 | |
| BeijingGuchunFoodCo.,Ltd | Trademarkroyalty | 2,959,185.29 | 3,136,541.91 |
| BeijingGuchunriceCo.,Ltd | Trademarkroyalty | 192,513.09 | 226,419.63 |
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | Trademarkroyalty | 3,874.42 | 5,282.64 |
Related-partytransactionsforpurchasingandsalinggoodsandprovisionandacceptanceoflaborservices:Thepriceofarelated-partytransactionshallbeequaltothepricechargedforaunrelated-partytransactionthatissameasorsimilartosuchrelated-partytransaction.
2.Related-partylease
(1)IftheCompanyisthelessor,
| NameofLessee | TypeofLeasedAsset | Leasestartdate | Leaseterminationdate | Pricingbasisofrentalincome | LeaseIncomeRecognizedintheCurrentPeriod | LeaseIncomeRecognizedinthePriorPeriod |
| BeijingGuchuanFoodCo.,Ltd. | Houseleasing | January1,2020 | December31,2020 | Marketprice | 13,333,333.30 | 13,333,333.30 |
| BeijingJingliangE-commerceCo.,Ltd. | Warehouseleasing | January1,2020 | December31,2020 | Marketprice | 664,311.28 | 459,905.62 |
NameofLessee
| NameofLessee | TypeofLeasedAsset | Leasestartdate | Leaseterminationdate | Pricingbasisofrentalincome | LeaseIncomeRecognizedintheCurrentPeriod | LeaseIncomeRecognizedinthePriorPeriod |
| BeijingJingliangE-commerceCo.,Ltd | Vehicleleasing | January1,2020 | December31,2020 | Marketprice | 22,530.26 | 22,530.26 |
| Total | -- | -- | -- | -- | 14,020,174.84 | 13,815,769.18 |
①IftheCompanyisthelessee,
| NameofLessee | TypeofLeasedAsset | Pricingbasisofrleasingfee | LeaseExpenseRecognizedintheCurrentPeriod | LeaseExpenseRecognizedinthePriorPeriod |
| BeijingDaxingNationalGrainPurchasing&StorageWarehouse | Houseleasing | Marketprice | 2,110,200.00 | 1,935,963.30 |
| BeijingJingliangRealEstateLimited | Houseleasing | Marketprice | 1,297,946.86 | 1,408,464.67 |
| BeijingGrainGroupCo.Ltd. | Houseleasing | Marketprice | 1,075,575.22 | 629,912.61 |
| BeijingNanyuanPlantOilFactory | 323,809.52 | |||
| Total | -- | -- | 4,483,722.08 | 4,298,150.10 |
3.Related-partyguaranteeBeijingJingliangFoodCo.,Ltd.,asubsidiaryofthecompany,istheguaranteedparty
| GuaranteedParty | AmountGuaranteed | EffectiveDate | DueDate | WhethertheGuaranteeHasBeenFulfilled |
| BeijingGrainGroupCo.,Ltd | 70,000,000.00 | March26,2020 | March25,2021 | No |
4.Remunerationforkeymanagementstaff
| Item | CurrentAmount(Unit:tenthousandyuan) | LastTermAmount(Unit:tenthousandyuan) |
| RemunerationforKeyManagementStaff | 528.28 | 715.23 |
7.Related-partyReceivablesandPayables
(1)Receivables
| Item | Related-party | EndingBalance | BeginningBalance | ||
| BookBalance | ProvisionforBadDebts | BookBalance | ProvisionforBadDebts | ||
Item
| Item | Related-party | EndingBalance | BeginningBalance | ||
| BookBalance | ProvisionforBadDebts | BookBalance | ProvisionforBadDebts | ||
| Monetaryfunds | BeijingshounongFoodGroupFinanceCo.,Ltd | 158,585,719.53 | 326,474,443.01 | ||
| Receivables | BeijingershangWangzhiheFoodCo.,Ltd | 8,584,555.70 | |||
| BeijingshounongconsumptionpovertyalleviationandInnovationCenterCo.,Ltd | 3,178,672.00 | ||||
| BeijingshounongSupplyChainManagementCo.,Ltd | 1,965,569.85 | 2,880,252.00 | |||
| FeedbranchofBeijingSanyuanSeedTechnologyCo.,Ltd | 1,544,618.10 | 1,938,842.06 | |||
| HebeishounongModernAgriculturalTechnologyCo.,Ltd | 1,473,919.32 | 1,579,153.54 | |||
| BeijingHaidianXijiaograinandoilsupplystationCo.,Ltd | 1,420,904.00 | 7,800.00 | |||
| BeijingZhujungrainandoilsupplyCo.,Ltd | 1,598,080.00 | 981,204.00 | |||
| BeijingJunyuangrainandoilpurchasingandMarketingCo.,Ltd | 1,009,912.00 | 148,800.00 | |||
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | 914,231.75 | 1,122,310.00 | |||
| BeijingLiangguangrainandoilsupplyCo.,Ltd | 672,100.00 | ||||
| BeijingGuchunFoodCo.,Ltd | 330,872.00 | 139,100.00 | |||
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | 147,000.00 | 289,880.00 | |||
| BeijingfoodsupplydepartmentNo.34supplydepartmentCo.,Ltd | 83,260.00 | ||||
| BeijingJingliange-commerceCo.,Ltd | 56,600.00 | 238,918.00 | |||
| BeijingzidibinggrainandoilsupplyCo.,Ltd | 29,106.00 | ||||
| BeijingbaijiayiFoodCo.,Ltd | 23,100.00 | 110,400.00 | |||
| BeijingshounongXiangshanConferenceCenterCo.,Ltd | 5,250.00 | ||||
| BeijingBeishuiYongxingaquaticproductsSalesCo.,Ltd | 882.00 | ||||
| BeijingershanggongyifuFoodCo.,Ltd | 17,226.00 | ||||
| BeijingGuchunriceCo.,Ltd | 11,397.00 | ||||
Item
| Item | Related-party | EndingBalance | BeginningBalance | ||
| BookBalance | ProvisionforBadDebts | BookBalance | ProvisionforBadDebts | ||
| BeijingBeishuiJialunaquaticproductsmarketCo.,Ltd | 2,856.00 | ||||
| BeijingaquaticproductsCo.,Ltd | 2,688.00 | ||||
(2)Payables
| Item | Related-party | EndingBalance | Beginningbalance |
| Short-termloans | BeijingshounongFoodGroupFinanceCo.,Ltd | 170,000,000.00 | |
| Payables | BeijingGuchunFoodCo.,Ltd | 293,871.55 | |
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | 20,641.00 | ||
| BeijingSanyuanFoodCo.,Ltd | 13,677.70 | ||
| BeijingYanqiYueshengzhaiHalalFoodCo.,Ltd | 1,922.50 | ||
| BeijingChangyangfarmCo.,Ltd | 1,470.00 | ||
| BeijingJingliangDongfanggrainandOilTradingCo.,Ltd | 33.03 | ||
| BeijingershangdahongmenMeatFoodCo.,Ltd | 11,176.11 | ||
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | 10,495.41 | ||
| Advancereceipts | BeijingJingliange-commerceCo.,Ltd | 153,301.88 | |
| BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd | 7,524.00 | ||
| Otherpayables | BeijingJingliangGroupCo.,Ltd | 1,712,270.30 | 1,137,030.30 |
| BeijingJingliange-commerceCo.,Ltd | 118,809.60 | 444,268.80 | |
| BeijingNanyuanvegetableoilfactoryCo.,Ltd | 50,360.92 |
8.Related-partyCommitmentsTheCompanyhasnorelated-partycommitmentsthisyear.XII.Sharebasedpayment
Therearenosharebasedpaymentsincurredthisyearforthecompany.XIII.CommitmentsandContingencies
Importantcontingenciesonthebalancesheetdate
1.InthecaseofguaranteecontractdisputebetweenJingliangholdingsandChongqinglongjinbaoNetworkTechnology
Co.,Ltd.(hereinafterreferredtoaslongjinbao)andShanghaiOulanenterprisemanagementcenter(generalpartnership)(hereinafterreferredtoasOulanCenter),SichuanProvincialHigherPeople'scourtmade(2019)CMCNo.58civiljudgmentonJanuary26,2021,rejectingtheclaimsoftheplaintiffslongjinbaoandOulancenter,Ifyouarenotsatisfiedwiththejudgment,youmaysubmitanappealtothiscourtwithin15daysfromthedateofserviceofthejudgment.LongjinbaoandOulancenterfiledanappealtotheSupremePeople'sCourtonFebruary20,2020.Asofthedateofthisreport,thesecondinstancehasnotyetbeenheard.
Accordingtotheagreementonmaterialassetsreplacementandissueofsharestopurchaseassets,theagreementondeliveryofassetsinmaterialassetsreorganizationsignedbythecompanyandtheformercontrollingshareholdersandtherelevantpartiesintheprocessofmaterialassetsreorganization,andtherelevantcommitmentsissuedbytherelevantpartiesintheprocessofmaterialassetsreorganization,anythirdpartyshallpaytothecompanytheadditionalliabilitiesthatarenotdisclosedandactuallyundertakenbythecompanyandexceedthoserecordedinthefinancialstatementsonthebasedateAnyclaimordemandputforwardbythecompanyshallbesettledandbornebytheoriginalcontrollingshareholderoritsdesignatedsubject.Fordetails,pleaserefertothecompany'swebsiteonAugust1,2017（www.cninfo.com.cn）HainanPearlRiverHoldingCo.,Ltd.majorassetreplacementandissuesharestopurchaseassetsandraisematchingfundsandrelatedpartytransactionsreport(RevisedVersion)disclosedonthe.Therefore,thecompanydoesnotexpecttheabovematterstohaveasignificantimpactonthecompany'scurrentorfutureprofits.
2.Thecompany'ssubsidiaryBeijingJingliangFoodCo.,Ltd.astheguarantorisasfollows:
GuaranteedParty
| GuaranteedParty | AmountGuaranteed | Actualguaranteeamount | EffectiveDate | DueDate | WhethertheGuaranteeHasBeenFulfilled |
| BeijingJingliangOilandFatCo.,Ltd. | 200,000,000.00 | 8,279,500.00 | September22,2020 | Theguaranteeperiodshallbetwoyearsfromthedateoftheexpirationoftheprincipalcreditor'srights. | No |
| BeijingJingliangOilandFatCo.,Ltd. | 175,000,000.00 | May9,2020 | Fromthedateofdrawingoractualoccurrenceofthefirstfinancingunderthefinancinglettertotwoyearsafterthematuritydateofthelatestoneofallthefinancingprovidedbythebankduringtheoccurrenceoftheguaranteeddebtunderthefinancingletter. | No | |
| BeijingJingliangOilandFatCo.,Ltd. | 35,000,000.00 | 35,000,000.00 | May20,2020 | 2years | No |
| BeijingJingliangOilandFatCo.,Ltd. | 100,000,000.00 | April24,2020 | Twoyearsfromthedateofmaturityoftheguaranteeddebt | No | |
| BeijingJingliangOilandFatCo.,Ltd. | 500,000,000.00 | 16,988,200.00 | April18,2020 | Effectivefromthedateofdeliberationandapprovalofthegeneralmeetingofshareholdersin2019tothedateofconveningthegeneralmeetingofshareholdersin2020 | No |
| Jingliang(Singapore) | 220,000,000.00 | 22,819,200.00 | April18,2020 | Effectivefromthedateofdeliberationand | No |
GuaranteedParty
| GuaranteedParty | AmountGuaranteed | Actualguaranteeamount | EffectiveDate | DueDate | WhethertheGuaranteeHasBeenFulfilled |
| InternationalTradeCo.,Ltd. | approvalofthegeneralmeetingofshareholdersin2019tothedateofconveningthegeneralmeetingofshareholdersin2020 | ||||
| Jingliang(Tianjin)GrainandOilIndustryCo.,Ltd. | 300,000,000.00 | April17,2020 | Fromthedateofsigningtheagreementondesignateddeliverywarehouse(designatedwarehouse)ofDalianCommodityExchangetotwoyearsaftertheterminationoftheagreementondesignateddeliverywarehouse(designatedwarehouse)ofDalianCommodityExchange. | No | |
| Jingliang(Singapore)InternationalTradeCo.,Ltd. | 268,000,000.00 | March8,2019 | 2yearsafterthematurityoftheprincipaldebt | Yes | |
| Jingliang(Singapore)InternationalTradeCo.,Ltd. | 241,500,000.00 | 68,388,000.00 | June11,2019 | 2yearsafterthematurityoftheprincipaldebt | No |
XIV.EventsaftertheBalanceSheetDate
1.DistributionofProfitsAsofthefinancialreportdateofthecompany,the13thmeetingoftheninthboardofdirectorsin2021approvedthatnoprofitdistributionwillbeconductedin2020,whichstillneedstobeapprovedbythegeneralmeetingofshareholders.XV.OtherImportantMatters
1.AnnuityPlanBasicinformationofannuity:BeijingJingliangFoodCo.,Ltd.,BeijingGuchunOilCo.,Ltd.,BeijingEisenLubaoOilCo.,Ltd.,BeijingJingliangOilCo.,Ltd.andBeijingGuchunBreadFoodCo.,Ltd.ofthecompanyparticipatedintheenterpriseannuityplanofBeijingshounongFoodGroupCo.,Ltd.,andformulatedtheimplementationrulesoftheirrespectiveenterprisesundertheannuityplan.ThenameoftheannuityplanisPingAnJinxiulifeenterpriseannuityplan;thetrusteeandaccountmanagerarepinganEndowmentInsuranceCo.,Ltd.;thetrusteeisChinaCITICBankCo.,Ltd.
2.InformationofDivisions
(1)BasisofdeterminationandaccountingpoliciesforreportingofdivisionsTheCompany'sbusinessesconsistoffoodprocessing,oilandgreaseandsoonaccordingtoitsinternalorganizationalstructure,managementrequirementsandinternalreportingsystem.TheCompany'smanagementregularlyevaluatestheoperatingresultsofthesedivisionstodeterminetheallocationofresourcestothemandevaluatetheirperformance.Theinformationreportedbydivisionsshouldbedisclosedaccordingtotheaccountingpoliciesandmeasurementstandardsadoptedbysuchdivisionswhentheyarereportingtothemanagement.Thesemeasurementbasesshouldbeconsistentwiththeaccountingandmeasurementbasesforpreparationoffinancialstatements.
(2)Reportingofthefinancialinformationofdivisions
Item
| Item | FoodProcessing | Oil&Grease | Other | OffsetAmongDvisions | Total |
| Operatingincome | 900,954,870.93 | 7,807,584,596.58 | 39,068,297.62 | -5,857,853.02 | 8,741,749,912.11 |
| Operatingcosts | 634,070,590.38 | 7,422,438,475.16 | 33,344,346.49 | 993,833.39 | 8,090,847,245.42 |
| Operatingprofit | 174,173,301.85 | 228,636,812.48 | 179,945,497.27 | -296,274,262.85 | 286,481,348.75 |
| Netprofitattributabletoparentcompany | 135,635,955.55 | 193,095,816.27 | 179,283,431.81 | -323,168,246.93 | 184,846,956.70 |
| Totalassets | 1,071,951,853.43 | 6,941,985,318.78 | 2,755,064,358.64 | -5,073,497,037.12 | 5,695,504,493.73 |
| Totalliabilities | 166,422,649.66 | 3,305,490,897.89 | 324,723,775.01 | -1,200,306,332.19 | 2,596,330,990.37 |
XVI.NotestoMainFinancialStatementItemsofParentCompany
1.AccountsReceivable
（1）Disclosedaccordingtoaging
| Aging | EndingBalance |
| Within1Year(including1year) | |
| Amongthem:Withincreditperiod(within3months) | |
| Creditperiodto1year | |
| 1to2years(including2years) |
Aging
| Aging | EndingBalance |
| 2to3years(including3years) | |
| 3to4years(including4years) | 3,000.00 |
| 4to5years(including5years) | 51,420.00 |
| Morethan5years | 72,000.00 |
| Total | 126,420.00 |
（
）Disclosedaccordingtothemethodofprovisionforbaddebt
| Type(s) | EndingBalance | ||||
| BookBalance | BadDebtProvision | BookValue | |||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | ||
| Separateprovisionforbaddebts | |||||
| Portfolioprovisionforbaddebts | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Amongthem:agingportfolio | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Total | 126,420.00 | -- | 114,636.00 | -- | 11,784.00 |
（Continued）
| Type(s) | BeginningBalance | ||||
| BookBalance | BadDebtProvision | BookValue | |||
| Amount | Ratio(%) | Amount | ProvisionRatio(%) | ||
| Separateprovisionforbaddebts | |||||
| Portfolioprovisionforbaddebts | 126,420.00 | 100.00 | 83,910.00 | 66.37 | 42,510.00 |
| Amongthem:agingportfolio | 126,420.00 | 100.00 | 83,910.00 | 66.37 | 42,510.00 |
| Total | 126,420.00 | -- | 83,910.00 | -- | 42,510.00 |
Portfolioprovisionforbaddebts:
Portfolioprovisionitem:agingportfolio
| Name | EndingBalance | BeginningBalance | ||||
| Accountsreceivable | BadDebtProvision | ProvisionRatio | Accountsreceivable | BadDebtProvision | ProvisionRatio | |
| Within1Year(including1 | ||||||
Name
| Name | EndingBalance | BeginningBalance | ||||
| Accountsreceivable | BadDebtProvision | ProvisionRatio | Accountsreceivable | BadDebtProvision | ProvisionRatio | |
| year) | ||||||
| Amongthem:Withinthecreditperiod(within3months) | ||||||
| Creditperiodto1year | ||||||
| 1to2years(including2years) | ||||||
| 2to3years(including3years) | 3,000.00 | 600.00 | 20.00 | |||
| 3to4years(including4years) | 3,000.00 | 1,500.00 | 50.00 | 51,420.00 | 25,710.00 | 50.00 |
| 4to5years(including5years) | 51,420.00 | 41,136.00 | 80.00 | 72,000.00 | 57,600.00 | 80.00 |
| Morethan5years | 72,000.00 | 72,000.00 | 100.00 | |||
| Total | 126,420.00 | 114,636.00 | 126,420.00 | 83,910.00 | ||
(3)Detailsofbaddebtprovision
| Type | Carryingamountatthebeginning | Amountchangesfortheperiod | Carryingamountattheend | |||
| Addition | Withdrawalorreversal | Write-off | Otherchanges | |||
| Baddebtprovision | 83,910.00 | 30,726.00 | 114,636.00 | |||
| Total | 83,910.00 | 30,726.00 | 114,636.00 | |||
（4）AccountsReceivableoftheTop5BalancesCollectedbyDebtorsattheEndofthePeriod
| Debtors | Bookbalance | Ratioofthetotalbalanceofaccountsreceivable(%) | Aging | Isitrelated | Baddebtprovision |
| Hainanpearlriverpipepileco.LTD | 108,000.00 | 85.43 | 3-4years,4-5years,morethan5years | No | 99,900.00 |
| Ceibsagriculturalqinhuangdaodevelopmentco.LTD | 18,420.00 | 14.57 | 4-5years | No | 14,736.00 |
| Total | 126,420.00 | 100.00 | —— | —— | —— |
2.OtherReceivables
1.Overview
(1)Classification
Item
| Item | EndingBalance | BeginningBalance |
| Interestreceivable | ||
| Dividendsreceivable | ||
| Otherreceivables | 103,341.26 | 12,612,756.48 |
| Total | 103,341.26 | 12,612,756.48 |
2.OtherReceivables
(1)Disclosedaccordingtoaging
| Aging | EndingBalance |
| Within1Year(including1year) | 3,333.00 |
| Amongthem:Withincreditperiod(within3months) | 3,333.00 |
| Creditperiodto1year | |
| 1to2years(including2years) | 105,271.85 |
| 2to3years(including3years) | |
| 3to4years(including4years) | |
| 4to5years(including5years) | |
| Morethan5years | 50,000.00 |
| Total | 158,604.85 |
(2)Classificationofotherreceivablesbynatureoffunds
| NatureofFunds | BookBalanceatEndofPeriod | BookBalanceatBeginningofYear |
| IntercourseFundsofUnits | 3,333.00 | 12,200,000.00 |
| EmployeeReceivables | 18,590.07 | |
| PersonalIntercourseFunds | 50,000.00 | |
| PettyCash | 105,271.85 | 105,271.85 |
| Others | 341,000.00 | |
| Total | 158,604.85 | 12,664,861.92 |
(3)Detailsaboutallowanceforbaddebt
| Provisionforbaddebt | Stage1 | Stage2 | Stage3 | Total |
Expectedcreditlossinthenext12months
| Expectedcreditlossinthenext12months | Expectedcreditlossforthewholeperiod(nocreditimpairment) | Expectedcreditlossforthewholeperiod(withcreditimpairment) | ||
| AmountonJanuary1,2020 | 2,105.44 | 50,000.00 | 52,105.44 | |
| CarryingamountonJanuary1,2020duringthisperiod: | ||||
| ——GetintoStage2 | ||||
| ——GetintoStage3 | ||||
| ——GetbacktoStage2 | ||||
| ——GetbacktoStage1 | ||||
| Provisionfortheperiod | 3,158.15 | 3,158.15 | ||
| Reversefortheperiod | ||||
| Transferfortheperiod | ||||
| Writeofffortheperiod | ||||
| Otherchanges | ||||
| Carryingamountattheendoftheperiod | 5,263.59 | 50,000.00 | 55,263.59 |
(4)Detailsofbaddebtprovision
| Type | Carryingamountatthebeginning | Amountchangesfortheperiod | Carryingamountattheend | |||
| Addition | Withdrawalorreversal | Write-off | Otherchanges | |||
| Baddebtprovision | 52,105.44 | 3,158.15 | 55,263.59 | |||
| Total | 52,105.44 | 3,158.15 | 55,263.59 | |||
(5)OtherreceivablesactuallywrittenoffinthecurrentperiodTheCompanyhasnootherreceivablesactuallywrittenoffinthecurrentperiod.
(6)Otherreceivablesaccordingtotopfiveofbalanceatendofperiodcollectedbydebtors
NameofOrganization
| NameofOrganization | NatureofFunds | BalanceatEndofPeriod | Aging | Proportioninoverallendingbalanceofotherreceivables(%) | Endingbalanceofbaddebtreserves |
| SongWang | Personalpayments | 50,000.00 | Morethan5years | 31.52 | 50,000.00 |
| YanYan | Reservefund | 46,000.00 | 1-2years | 29.00 | 2,300.00 |
| PaiFeng | Reservefund | 26,671.80 | 1-2years | 16.82 | 1,333.59 |
| ZhongweiCui | Reservefund | 14,007.40 | 1-2years | 8.83 | 700.37 |
| GuangjieHuang | Reservefund | 10,005.00 | 1-2years | 6.31 | 500.25 |
| Total | —— | 146,684.20 | —— | 92.48 | 54,834.21 |
3.Long-termEquityInvestment
| Item | EndingBalance | BeginningBalance | ||||
| BookBalance | ProvisionforImpairment | BookValue | BookBalance | ProvisionforImpairment | BookValue | |
| Investmentinsubsidiaries | 2,626,437,846.24 | 2,626,437,846.24 | 2,377,420,527.10 | 2,377,420,527.10 | ||
| Total | 2,626,437,846.24 | 2,626,437,846.24 | 2,377,420,527.10 | 2,377,420,527.10 | ||
(1)Investmentinsubsidiaries
| InvestedEntity | BeginningBalance | CurrentIncrease | CurrentDecrease | EndingBalance | CurrentProvisionforImpairment | EndingBalanceofProvisionforImpairment |
| BeijingJingliangFoodCo.,Ltd. | 2,336,639,964.05 | 2,336,639,964.05 | ||||
| ZhejianglittleprinceFoodCo.,Ltd | 249,017,319.14 | 249,017,319.14 | ||||
| Jingliangruralcomplexconstructionandoperation(Xinyi)Co.,Ltd | 15,280,563.05 | 15,280,563.05 | ||||
| Jingliang(Caofeidian)AgriculturalDevelopmentCo.,Ltd. | 25,500,000.00 | 25,500,000.00 | ||||
| Total | 2,377,420,527.10 | 249,017,319.14 | 2,626,437,846.24 |
4.Operatingincomeandoperatingcosts
1.Detailsofoperatingincomeandoperatingcosts
Item
| Item | CurrentAmount | LastTermAmount | ||
| Income | Cost | Income | Cost | |
| Corebusiness | ||||
| Otherbusinesses | 1,181,687.83 | 2,190,925.69 | ||
| Total | 1,181,687.83 | 2,190,925.69 | ||
5.Incomefrominvestment
| Sourcesofinvestmentincome | CurrentAmount | LastTermAmount |
| Longtermequityinvestmentincomecalculatedbycostmethod | 205,893,687.32 | |
| Others | 506,874.91 | |
| Total | 206,400,562.23 |
XVII.SupplementaryInformation
1.AccordingtotherequirementsoftheCSRC's"ExplanatoryAnnouncementonInformationDisclosureofCompaniesPubliclyIssuingSecuritiesNo.1-Non-recurringGainsandLosses",thenon-recurringgainsandlossesduringthereportingperiodshallbereported
1.Detailsofnon-recurringprofitandlossinthereportingperiod
| Detailsofnon-recurringprofitandloss | Amouont | Note |
| (1)Gainsandlossesondisposalofnoncurrentassets | -381,048.39 | |
| (2)Governmentsubsidiesincludedinthecurrentprofitsandlosses(closelyrelatedtothebusinessoftheenterprise,exceptthegovernmentsubsidiesenjoyedaccordingtothenationalunifiedstandardquotaorquantitative) | 16,051,980.44 | |
| (3)Inadditiontotheeffectivehedgingbusinessrelatedtothenormalbusinessofthecompany,theprofitandlossfromchangesinfairvaluearisingfromholdingtradingfinancialassets,derivativefinancialassets,tradingfinancialliabilitiesandderivativefinancialliabilities,aswellastheinvestmentincomefromthedisposaloftradingfinancialassets,derivativefinancialassets,tradingfinancialliabilities,derivativefinancialliabilitiesandotherdebtinvestments | 18,333,216.38 | |
| (4)Othernon-operatingincomeandexpensesotherthantheabove | -781,754.81 | |
| (5)Otherprofitandlossitemsthatmeetthedefinitionofnonrecurringprofitandloss | 103,652.86 |
Detailsofnon-recurringprofitandloss
| Detailsofnon-recurringprofitandloss | Amouont | Note |
| Totalnonrecurringprofitandloss | 33,326,046.48 | |
| Less:amountaffectedbyincometax | 8,331,511.62 | |
| Nonrecurringprofitandlossafterdeductingtheinfluenceofincometax | 24,994,534.86 | |
| Including:nonrecurringprofitandlossattributabletotheowneroftheparentcompany | 20,809,219.11 | |
| Nonrecurringprofitandlossattributabletominorityshareholders | 4,185,315.75 |
2.Returnonequityandearningspershare
| CurrentProfit | WeightedReturnonAverageEquity(ROAE)(%) | EPS | |
| BasicEPS | DilutedEPS | ||
| NetprofitattributabletotheCompany'scommonshareholders | 7.17 | 0.26 | 0.26 |
| Netprofitattributabletocommonshareholdersafterdeductionofnon-recurringgainsandlosses | 6.36 | 0.23 | 0.23 |
HainanJingliangHoldingsCo.,Ltd.
27March2021