Shenzhen China Bicycle Company (Holdings) Limited
Annual Report of 2021
April 2022
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafterreferred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.
Li Hai, Principal of the Company, Sun Longlong, person in charge of accountingworks and Zhong Xiaojin, person in charge of accounting organ (accountingprincipal) hereby confirm that the Financial Report of 2021 Annual Report isauthentic, accurate and complete.All directors are attended the Board Meeting for Report deliberation.The financial report for year of 2021 was audited by Baker Tilly China CPA(LLP), and an unqualified audit report with significant uncertainty of goingconcern was issued. The board of directors and the board of supervisors of theCompany have detailed explanations on related matters. Investors should readcarefully.The Company plans not to distribute cash dividends, not to send bonus shares,and no reserve capitalizing.
Contents
Section I. Important Notice, Contents and Interpretation ...................................... 2
Section III Management Discussion and Analysis ...... 11
Section IV Corporate Governance ...... 32
Section VII. Changes in Shares and Particulars about Shareholders .................. 59
Section VIII. Preferred Stock ................................................................................... 68
Section IX. Corporate Bonds .................................................................................... 69
Documents Available for Reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge ofaccounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignated by CSRC in the report period.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaperdesignated by CSRC in the report period.
4. English version of the Annual Report 2021
Interpretation
Items | Refers to | Contents |
Section II. Company Profile and Main Financial IndexesI. Company information
Short form of the stock | Zhonghua A, Zhonghua B | Code for share | 000017, 200017 |
The abbreviation of the changed stock (if applicable) | N/A | ||
Stock exchange for listing | Shenzhen Stock Exchange | ||
Name of the Company (in Chinese) | 深圳中华自行车(集团)股份有限公司 | ||
Short form of the Company (in Chinese) | 深中华 | ||
Foreign name of the Company (if applicable) | Shenzhen China Bicycle Company (Holdings) Limited | ||
Short form of foreign name of the Company (if applicable) | CBC | ||
Legal representative | Li Hai | ||
Registrations add. | No. 3008, Buxin Rd., Shenzhen | ||
Code for registrations add | 518019 | ||
Historical changes of registered address | N/A | ||
Offices add. | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen | ||
Codes for office add. | 518029 | ||
Company’s Internet Web Site | www.cbc.com.cn | ||
dmc@szcbc.com |
II. Person/Way to contact
Secretary of the Board | Rep. of security affairs | |
Name | Sun Longlong | Yu Xiaomin, Zhong Xiaojin |
Contact add. | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen |
Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 |
Fax. | 0755-28181009 | 0755-28181009 |
dmc@szcbc.com | dmc@szcbc.com |
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report of the Company disclosed | Shenzhen Stock Exchange (http://www.szse.cn) |
Media and Website where the annual report of the Company disclosed | Securities Times, Hong Kong Commercial Daily, Juchao Website (http://www.cninfo.com.cn) |
Preparation place for annual report | 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen |
IV. Registration changes of the Company
Organization code | 914403006188304524 |
Changes of main business since listing (if applicable) | Main products or services provided at present: Emmelle bicycle, electric bicycle, lithium battery materials and gold jewelry. |
Previous changes for controlling shareholders (if applicable) | 1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange, and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd. and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares 13.58% A-stock of the Company was obtained by China Huarong Asset Management Co., Ltd. through court auction, and became the first majority shareholder of the Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by Huarong Company was acquired by Shenzhen Guosheng Energy Investment Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January 2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd. holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after Ji Hanfei made the declaration to abandon the actual control of the Company, the investment from CBC by Mr. Ji changed to general investment instead of actual controlling, and the actual controller of the Company changed from Ji Hanfei to no actual controller. |
V. Other relevant information
CPA engaged by the Company
Name of CPA | Baker Tilly China CPA (LLP) |
Offices add. for CPA | A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing |
Signatory accountant | Qu Xianfu, Deng Jun |
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
2021 | 2020 | Changes in the current year over the previous year (+,-) | 2019 | |
Operation revenue (RMB) | 165,246,577.95 | 117,857,480.17 | 40.21% | 76,022,687.75 |
Net profit attributable to shareholders of the listed company (RMB) | -1,986,692.82 | 3,785,834.68 | -152.48% | -7,186,905.64 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -4,548,872.83 | 3,071,751.90 | -248.09% | -7,370,499.83 |
Net cash flow arising from operating activities (RMB) | 15,673,932.87 | 3,942,228.96 | 297.59% | -13,791,941.34 |
Basic earnings per share (RMB/Share) | -0.0036 | 0.0069 | -152.17% | -0.0130 |
Diluted earnings per share (RMB/Share) | -0.0036 | 0.0069 | -152.17% | -0.0130 |
Weighted average ROE | -20.04% | 42.01% | -62.05% | -53.69% |
Year-end of 2021 | Year-end of 2020 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of 2019 | |
Total assets (RMB) | 97,363,437.22 | 91,742,769.99 | 6.13% | 62,733,602.58 |
Net assets attributable to shareholder of listed company (RMB) | 8,918,538.16 | 10,905,230.98 | -18.22% | 7,119,396.30 |
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years isnegative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a goingconcern
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
√Yes □No
Item | 2021 | 2020 | Note |
operation revenue (RMB) | 165,246,577.95 | 117,857,480.17 | N/A |
Deduction amount of operation revenue 9RMB) | 51,644.42 | 41,142.96 | N/A |
Amount of operation revenue after deduction (RMB) | 165,194,966.53 | 117,816,337.21 | N/A |
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VIII. Quarterly main financial index
Unit: RMB/CNY
Q 1 | Q 2 | Q 3 | Q 4 | |
operation revenue | 23,163,329.56 | 30,966,988.04 | 29,113,392.89 | 82,002,867.46 |
Net profit attributable to shareholders of the listed company | -211,535.36 | 1,577,028.70 | 575,788.96 | -3,927,975.12 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -211,535.36 | -205,058.93 | 326,846.26 | -4,109,642.17 |
Net cash flow arising from operating activities | 1,399,162.83 | -3,846,289.65 | -3,377,294.28 | 21,498,353.97 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB/CNY
Item | 2021 | 2020 | 2019 | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | - | 24,936.44 | - | |
Government subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 397,876.20 | - | - | |
Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 1,881,334.27 | |||
Other non-operation revenue and expenditure except for the aforementioned items | 376,450.05 | 754,370.46 | 194,691.02 | |
Less: Impact on income tax | 18.42 | 0.18 | 48,672.76 | |
Impact on minority shareholders’ equity (post-tax) | 93,462.09 | 65,223.94 | -37,575.93 | |
Total | 2,562,180.01 | 714,082.78 | 183,594.19 | -- |
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/lossesInformation on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurringprofit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurringprofit(gain)/loss
Section III Management Discussion and AnalysisI. Industry of the Company during the reporting periodThe Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(i) Analysis of the industry market size
1. The product category of the industry is relatively rich
Jewelry can be divided into gold, diamond, jade, colored jewelry and others. Under the background of China’s cultural tradition ofadvocating gold jewelry and the investment properties of gold, gold jewelry occupies a relatively high proportion in the domesticjewelry market, reaching 60.13%. Diamond and jade are also the main categories of jewelry in China, accounting for 13.97% and
9.85%. From the international market, the jewelry markets of developed countries such as the United States, Japan, and Europe areall dominated by diamond jewelry. Compared with the international market, the main categories of China’s jewelry market are moreabundant, and the proportion of various jewelry markets is more balanced.
2. The actual consumption of gold jewelry has a steady growth
With the growth of the national economy and the accumulation of wealth of residents, China’s demand for gold grew rapidly in theearly 21st century, making it the world’s largest gold consumer. The fall in gold prices in 2013 triggered a boom of buying goldjewelry, and also overdrew the demand for gold jewelry in advance, which declined from 2013 to 2016. However, after a period ofreadjustment, along with the gradual recovery of the economy and gold prices, the gold jewelry industry has bottomed out sinceSeptember 2016, and continued to grow steadily in 2017, entering a new round of recovery cycle.
In 2021, the domestic pandemic was effectively controlled, enterprises resumed work and production in an orderly manner, and theconsumer market entered a stage of gradual recovery. The gold jewelry consumer market benefited from the rigid demand forweddings, which played a positive role in promoting gold jewelry sales. Based on the further improvement of China’smacroeconomic strength and international status, a huge middle-class consumer group has been formed, which has brought a newdevelopment pattern to the development of the gold jewelry market and opened up new incremental space.
3. Trading value of the diamond jewelry importation increased significantly
With the effectively control of epidemic in China, the diamond imports shows a strong rebound in the first half of 2021 after arecovery phase in the second half of 2020 and a downturn in the first half of 2020.
According to recent statistics, the number and value of China’s diamond imports from 2016 to 2021 reached a maximum in 2021;
(ii) Industry development trend analysis
1. The increase in industry concentration has become the mainstream trend
In recent years, consumers’ brand awareness has been increasing. In addition, at the end of 2014, the National Jewelry StandardsTechnical Committee revised the mandatory national standard “Regulations on the Purity of Precious Metals in Jewelry and Naming”(GB11887-2012), which deleted the “pure gold” and other titles, guided consumers to pay more attention to jewelry design,craftsmanship, style and brand value, and no longer be attracted by the words “pure gold” in the slogan and pay more attention toproduct quality, prompting small jewelry enterprises to move closer to large jewelry enterprises. The increasing concentration of thejewelry industry has become the mainstream trend.
In contrast, some regional branded or unbranded small jewelry companies are at a disadvantage in terms of scale, capital, cost, etc.,coupled with their own lack of ability in brand operation management, product marketing design, and enterprise operation, in thecase of consumers paying more and more attention to brand, they will have to choose to rely on the development of jewelry brandswith larger brand awareness, which will further promote the improvement of the industry concentration, and the national jewelrybrands will gain an opportunity for vigorous development.
2. Third- and fourth-tier cities become important consumer markets for the jewelry industryIn recent years, the pace of urbanization in China has gradually accelerated, and the urbanization rate has continued to grow.Residents in rural areas are gradually relocating and settling in nearby third- and fourth-tier cities, which steadily deliver new vitalityto the third- and fourth-tier cities. In the future, the third- and fourth-tier cities will have broad market space and show huge growthpotential. With the sinking trend of the jewelry consumption market, the third- and fourth-tier cities will become the main markets forthe growth of jewelry companies in the future.
3. Channel strength will be regarded as the core competitiveness of enterprises for a long timeThe internal competition in the jewelry industry is relatively large, and the fierce market competition makes the construction andcontrol of sales channels for jewelry companies crucial. At the same time, due to the high value of jewelry, consumers are oftenworried about the quality of the product and the reasonableness of the price when purchasing, which often prompts them to purchasethrough physical channels.
There is a certain scarcity of high-quality physical channels, and the number of high-quality shops in a region’s high-quality businessdistricts is scarce. Such high-quality shops can not only provide higher traffic, improve the retail performance of jewelry, but alsohave the important value of brand promotion. Therefore, in the fierce market competition, it is very important for jewelry enterprisesto control high-quality physical channels, which reflects the core competitiveness of enterprises on the other side.
4. Brand and design capabilities will become a new driving force for the development of the industryWith the change of consumer demographic structure and the increase of per capital income, the middle and upper middle class andwealthy people have gradually become the main force of consumption, and the mainstream consumption concept has also quietlychanged. Compared with traditional consumers, emerging consumer groups pay more attention to the design, craftsmanship, styleand brand value of jewelry products, hoping to meet their needs to show their taste and personality. In addition, the National JewelryStandards Technical Committee has removed titles such as “pure gold from the national standards, further prompting consumers topay attention to the design, craftsmanship, style and brand value of jewelry, rather than overemphasizing purity.
5. There is large space for improving the penetration rate of diamond jewelry
In China, different jewellery products have different market maturity levels. Among them, gold jewelry has a relatively deepfoundation in Chinese culture, and it is still the main jewelry consumption type so far. The diamond jewelry is small in volume butis growing rapidly, and has a broad space for industry development in the future.
(iii) Competitive advantages of the company to engage in the jewelry and gold business
1. High-quality upstream supplier system
At present, the company has established relatively stable cooperative relationships with major diamond suppliers and processors athome and abroad, and has advantages in raw material procurement cost, order production cycle and product quality control, whichcan continuously reduce supply cost and improve operational efficiency.
2. Diversified downstream market channels and customer resources
The company is actively expanding its gold jewelry customers now. In addition to customers with clear orders, it is currentlynegotiating business cooperation with a number of domestic jewelry brands. The above customers include three types of customers,of which Class A customers are national well-known brand customers, with more than 500 retail stores; Class B customers are smalland medium-sized/regional/segmented brands, with 300-500 retail stores; Class C customers are small and medium-sized brands,with 50-100 retail stores.
3. Improve the industrial chain of production and design
The company has a one-stop industrial chain of design, production, processing, testing, and wholesale. Brand owners can rely on ourjewelry processing resources to hand over lower value-added links such as manufacturing and distribution to the company, so as tofocus on the higher value-added brand operation and sales links. Outsourcing in the production and design process can improve thehomogenization of gold jewelry products.
4. Closed-loop business process and risk control system
The company has formulated strict business internal control processes such as supplier admittance standards, customer evaluationsystem, full-process order tracking system, and procurement price comparison system, and has realized the closed-loop control ofcapital flow, information flow and logistics and the multi-level risk control through the integrated service platform of supply systemand the integrated solution of capital management.
In the bicycle and lithium battery materials industry, as a traditional manufacturing industry, the bicycle industry continues thedilemma of rising labor costs, manufacturing costs, capital costs, and material costs. The implementation of the new nationalstandards for safety technical specifications of electric bicycle in April 2019 accelerated the reshuffle of the industry and formed anew round of industry shocks. In addition, on the basis of the violent shock of shared bicycles with capital advantages on the bicycleindustry and upstream supply chain operations in the past few years, the aftershocks continue to impact the recovery of the industrydue to the lack of profit model and capital chain problems. At the same time, the bicycle industry as a traditional manufacturing fieldhas also ushered in an important opportunity to accelerate transformation and upgrading under the guidance of the "Made in China2025" strategy of strengthening the country under the guidance of the basic policy of "innovation-driven, quality-first, greendevelopment, structural optimization, and talent-oriented", ushered in the development opportunities for the implementation of thenew national standards for electric bicycles, and faced important opportunities and challenges of e-commerce development onchannel impact, channel integration and Internet+. Our country is the world's largest country in the production and sales of electricbicycles. After years of development, electric bicycles have gradually become an important means of transportation for consumers'daily short-distance trips. At present, there are about 200 million vehicles in the whole society. Structural body, motor, power battery,and control system, as the core components of electric bicycles, Shenzhen China Bicycle has closely followed up and studied theirtechnological development, application development and commercial value for a long time, and determined the list of qualifiedsuppliers for core components year by year. As one of the core components of electric bicycle, lead-acid batteries have been mainlyused as the power batteries in the past ten or twenty years. With the development and popularization of new energy technologies andnew energy materials, it is expected that they will be replaced by lithium batteries on a large scale in the future. The implementationof the new national standards for safety technical specifications of electric bicycle has comprehensively improved the safetyperformance of electric bicycles, adjusted and improved technical indicators such as speed limit, vehicle quality, and pedaling ability.The new standards that are close to the people's livelihood and serve the people's livelihood have increased the application space oflithium battery energy storage, and lithium battery electric bicycles will usher in a new stage of development.
II. Main businesses of the Company during the reporting period
During the reporting period, the company mainly engaged in bicycle and lithium battery material business, and jewelry gold business:
(1) Bicycle and lithium battery material business includes production, assembly, procurement, and sales of bicycles and electric
bicycles, and procurement, sales, and consigned processing of lithium batteries materials, etc.; (2) Gold jewelry business mainlyprovides supply management and services in the vertical field of gold jewelry. The company connected with downstream goldjewelry brands, purchased gold and diamonds according to their product needs, and then entrusted gold jewelry processing plants forprocessing, and delivered the inspected and qualified finished products to downstream customers after making product certificate forthem. Through the integration of upstream supplier resources and downstream customer resources, the turnover speed of gold jewelryproducts in upstream and downstream has been improved, the cost of circulation has been reduced, and the overall competitiveadvantage of upstream and downstream has formed.
As the operation revenue from jewelry-related business for year of 2021 accounts for more than 30% of the Company’s auditedoperation revenue for the most recent fiscal year, the Company is required to comply with the disclosure requirement ofjewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- IndustryDisclosure”, specific disclosures are as follow:
(i) Main business models during the reporting period
1.Procurement model
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds and gold, of whichthe diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic mature diamondwholesalers (generally members of the Shanghai Diamond Exchange) ), gold was mainly purchased from the Shanghai GoldExchange through the company's membership qualifications at Shanghai Gold Exchange. The company has established professionalprocurement department and team to be responsible for the procurement of diamond products and jewellery. The specificprocurement models varied according to customer needs.
2. Production model
By integrating upstream commissioned processing plants, the company outsourced the production of products ordered by customersto professional jewelry manufacturers to give full play to their professional and scale effect. In view of the current situation andcharacteristics of domestic jewelry processing enterprises, the company established a set of effective supplier managementmechanisms and evaluation standards to achieve a benign interaction between the production system of outsourced manufacturersand the company's business development.
3. Sales model
According to the annual order planning and regular procurement requirements of brand retailers, the company provided B-endcustomers with various forms of supply chain management services such as spot procurement, order production, and customizeddevelopment, so as to minimize product inventory and improve the supply chain effectiveness for customers.Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and suppliers' productstyles and spot resources, and provided corresponding product structure according to the customer's brand characteristics andterminal market needs;
Order production: Customers placed orders to the company according to their own needs, and the company purchased raw materialsand subcontracted processing to form finished products and sell them to customers;Customized development: According to the characteristics of their own brands and future development needs, customers entrustedthe company to develop and design the product styles, and produce finished products to sell to customers.
(ii) Operation of the physical store during the reporting periodDuring the reporting period, gold and jewelry business of the Company mainly provides supply chain management and services in
the vertical field of gold and jewelry, it connects with the downstream gold jewelry brand and does not have the physical stores.
(iii) Operation of the on-line sales in reporting periodThe Company does not have on-line sales in the Period
(iv) Inventory in the reporting periodAs of end of the Period, balance of inventory from jewelry business amounted to 7,685,551.16 yuan, a 27.92% up compared with thatof period-begin, types of the inventory includes:
Unit: RMB/CNY
Item | Types | Amount | Proportion |
Finished goods
Finished goods | Jewelry | 1,966,368.40 | 25.59% |
Gold jewelry | — | — | |
Other | — | — | |
Total | 1,966,368.40 | 25.59% | |
Raw materials | Gold | 3,418,162.23 | 44.48% |
Platinum | — | — | |
Diamond | 1,624,915.85 | 21.14% | |
Total | 5,043,078.08 | 65.62% | |
Wrappage | 105,670.36 | 1.37% |
Goods in process
Goods in process | 570,434.32 | 7.42% | |
Total | 7,685,551.16 | 100.00% |
III. Core Competitiveness Analysis
In 2021, based on its own poor economic conditions after the reorganization, the company continued to adhere to the traditionalbusiness development of electric bicycles, strived to carry out new product research and development, and carried out online andoffline sales and brand management; at the same time, based on the long-term process of the electric bicycle business,correspondingly carried out follow-up research on related industrial projects and technical applications in the upstream anddownstream of the industrial chain. On the basis of extensive commercial contacts and previous businesses, the company continuedto expand the lithium battery material business to enrich the main business. On the one hand, the company continued to promote thedevelopment of the jewelry and gold business and expand the business dimension. In August 2019, the Company and ShenzhenZuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd with contribution of 6.5million yuan. Of which, the Company holds 65% equity, and is the controlling shareholder of Shenzhen Xinsen Jewelry Gold SupplyChain Co., Ltd, while 35% equity held by Zuankinson Jewelry. According to actual operation development, in February 2020, thetwo parties are decided to increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd to 20 million yuan in thesame proportion. Relevant registration capital is fully funded in June 2020. In order to meet the future business development needs ofShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., it will enhance its financial strength, comprehensive competitiveness andanti-risk capabilities. In August 2020, the company and the joint venture partner, Shenzhen Zuankinson Jewelry and Gold SupplyChain Co., Ltd. decided to jointly increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same
proportion, increasing the registered capital from 20 million yuan to 200 million yuan, of which, the company newly increasedcapital of 117 million yuan, which was successively invested in accordance with its own funds and the availability of funds raisedfrom the non-public issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, a total of 180 million yuanincreased. The above mentioned capital increase event has been deliberated and approved by the second extraordinary generalmeeting of shareholders of 2020 dated 21 August 2020. On the one hand, making more efforts to promote the selection ofrestructuring party and planning for the non-public offering of shares in the hope of improving the business strength and developmentmomentum of the Company.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary generalmeeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raisefunds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would beused to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right ofcontrol. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of ShenzhenChina Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the abovenon-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-upworks are in progress.Jewelry and gold business of the Company has gradually become the core business of the Company through the endogenousdevelopment
IV. Main business analysis
1. Overview
In 2021, the global pandemic continued, the world economic recovery was short of impetus, commodity prices fluctuated at a highlevel, and the external environment became more complex, severe and uncertain. China’s economic development faced triplepressures of demand contraction, supply shock, and weakening expectations. Local outbreaks occurred from time to time. Therecovery of consumption and investment was slow, the supply of energy and raw materials was still tight, the pressure of importedinflation increased, the production and operation of small, medium and micro enterprises and individual industrial and commercialhouseholds were difficult, the task of stabilizing employment became more arduous, and there were many hidden risks in theeconomic and financial fields. In the face of complex and severe domestic and international situations and many risks and challenges,under the leadership of the Party and the government, all people of the whole country worked together to coordinate pandemicprevention and control and economic and social development, the government took multiple measures to stabilize people’s livelihood,stabilize businesses and promote employment, and companies increased revenue and reduced expenditure to ensure business stability,survival and development, and achieved positive results.
In 2021, combine actual condition of financially insecure after reorganization, on the one hand, we continue to adhere to traditionalbusiness model development of electric bicycles, and strive to carry out R&D on new products, and online & offline sales as well asthe brand management works. At the same time, based on the long-term process of the electric bicycle business, the follow-upresearch of related industrial projects and technology applications in the upstream and downstream of the industrial chain have beencarried out accordingly, and on the basis of extensive business contacts and businesses in previous years, it continued to expand thelithium battery material business to enrich the main business. On the one hand, continued to promote the development of the jewelrygold supply chain business and expand the business dimension. In August 2019, the company and Shenzhen Zuankinson Jewelry Co.,Ltd. jointly invested 6.5 million yuan to establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65%of the shares as the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry
holding 35% of the shares. According to the actual situation of business development, in February 2020, the two parties decided toincrease the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and therelevant registered capital have been in place in June 2020. In order to meet the future operation and development needs of ShenzhenXinsen Jewelry Gold Supply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability,the company signed a capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd.in August 2020, and once again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion,and the registered capital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117million yuan, which would be successively invested in accordance with its own funds and the availability of funds raised from thenon-public issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. OnAugust 21, 2020, the company's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capitalincrease. On the one hand, we strived to promote the selection of the company's restructuring party and plan for the non-publicissuance of stocks, hoping to improve the company's business strength and development potential.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary generalmeeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raisefunds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would beused to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right ofcontrol. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of ShenzhenChina Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the abovenon-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-upworks are in progress.
In order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, the company andShenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) Cooperation Contract" in2020. The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholders andannounced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointlypromote contract performance and related affairs. During the project development process, the Shenzhen Municipal People’sCongress issued and implemented the Regulations on Urban Renewal of Shenzhen Special Economic Zone on March 1, 2021, as aresult, the residents’ willingness to renew which the project should obtain before applying for the plan to demolish and rebuild urbanrenewal units increased from 90% to 95%, and the company’s basis for fulfilling the Cooperation Contract had major changes. Basedon the company’s long-term development, and in order to better solve the problem of handling the property right certificates left bythe residents of Zhonghua Garden Phase II, in October 2021, the board meeting and the general meeting of shareholders consideredand approved that the company would terminate the performance of the Cooperation Contract and no longer be a partner of theproject.
Jewelry and gold business of the Company has gradually become the core business of the Company through the endogenousdevelopment. In 2021, the Company achieved operation revenue of 165.25 million yuan through various efforts to carry out, the netprofit attributable to shareholder of listed company was -1.99 million yuan.
Item | Period-end/current period | Period-begin/last period | Y-o-y changes (+,-) | Cause of change |
Operation revenue | 165,246,577.95 | 117,857,480.17 | 40.21% | Revenue from jewelry and gold business increased during the Period |
Operation cost
Operation cost | 152,606,986.59 | 103,221,623.73 | 47.84% | Costs from jewelry and gold business increased |
during the Period | ||||
Credit impairment loss (loss is listed with “-”) | -2,398,980.61 | -603,180.13 | 297.72% | Increase in the impairment of account receivable in the Period compared with previous period |
Net profit | -1,639,556.00 | 4,375,706.59 | -137.47% | The revenue increased in the Period, gross profit declined and the expenses and bad debts increased |
Net profit attributable toshareholder of parentcompany
Net profit attributable to shareholder of parent company | -1,986,692.82 | 3,785,834.68 | -152.48% | The revenue increased in the Period, gross profit declined and the expenses and bad debts increased |
Net cash flow arisingfrom operating activities
Net cash flow arising from operating activities | 15,673,932.87 | 3,942,228.96 | 297.59% | Receipt of the first repurchase payment for the Shajing cooperation lands on behalf of the manager in the Period |
Net cash flow arising from investment activities | -18,890.56 | 46,381.18 | -140.73% | Purchasing new fixed assets in the Period while fixed assets are disposed in the previous period |
Net cash flow arising from financing activities | -2,296,062.44 | 9,825,000.00 | -123.37% | Current period refers to the amount of lease payment under the new lease standards, the previous period refers to the minority investment received by subsidiary Xinsen due to capital increase |
Monetary fund
Monetary fund | 33,246,957.92 | 19,887,978.05 | 67.17% | Receipt of the first repurchase payment for the Shajing cooperation lands on behalf of the manager in the Period |
Other current assets | 1,814,200.53 | 2,715,425.31 | -33.19% | Decrease in the retained credit in the Period |
Deferred income tax assets | 64,046.67 | 793,170.75 | -91.93% | Reversal of deferred income tax assets by subsidiary |
Contract liability
Contract liability | 124,328.07 | 15,254,713.38 | -99.18% | Deposit received in the previous period for Zhonghua Garden Phase II and the rents received in advance are transferred to other account payable |
Other account payable | 61,407,301.04 | 37,882,805.52 | 62.10% | Receipt of the first repurchase payment for the Shajing cooperation lands on behalf of the manager in the Period, and deposit received in the previous period for Zhonghua Garden Phase II and the rents received in advance are transferred to other account payable |
Non-current liability due within one year | 1,456,782.04 | Re-classification of the lease liability due within one year | ||
Other current liability | 11,700.06 | 1,175,251.38 | -99.00% | Decrease in contract liability, and the taxes declined correspondingly |
2. Revenue(income) and cost
(1) Constitute of operation revenue
Unit: RMB/CNY
2021 | 2020 | Y-o-y changes (+,-) | |||
Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
Total operation revenue | 165,246,577.95 | 100% | 117,857,480.17 | 100% | 40.21% |
According to industries | |||||
Sales of bicycles and spare parts | 9,629,736.29 | 5.83% | 16,435,436.09 | 13.95% | -41.41% |
Lithium battery material | 19,745,299.24 | 11.95% | 13,405,034.83 | 11.37% | 47.30% |
Jewelry and gold | 132,915,435.90 | 80.43% | 87,064,073.74 | 73.87% | 52.66% |
Other | 2,956,106.52 | 1.79% | 952,935.51 | 0.81% | 210.21% |
According to products | |||||
Sales of bicycles and spare parts | 9,629,736.29 | 5.83% | 16,435,436.09 | 13.95% | -41.41% |
Lithium battery material | 19,745,299.24 | 11.95% | 13,405,034.83 | 11.37% | 47.30% |
Jewelry and gold | 132,915,435.90 | 80.43% | 87,064,073.74 | 73.87% | 52.66% |
Other | 2,956,106.52 | 1.79% | 952,935.51 | 0.81% | 210.21% |
According to region | |||||
Domestic | 165,246,577.95 | 100.00% | 117,857,480.17 | 100.00% | 40.21% |
According to sale model | |||||
Direct sales | 165,246,577.95 | 100.00% | 117,857,480.17 | 100.00% | 40.21% |
(2) Industries, products, regions and sales model that account for more than 10% of the operating revenueor operating profit of the Company
√ Applicable □Not applicable
Unit: RMB/CNY
Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
According to industries |
Sales of bicycles and spare parts | 9,629,736.29 | 5,156,724.06 | 46.45% | -41.41% | -37.11% | -3.66% |
Lithium battery material | 19,745,299.24 | 19,684,264.57 | 0.31% | 47.30% | 49.22% | -1.28% |
Jewelry and gold | 132,915,435.90 | 124,935,947.83 | 6.00% | 52.66% | 54.36% | -1.03% |
Other | 2,956,106.52 | 2,830,050.13 | 4.26% | 210.21% | 217.92% | -2.33% |
According to products | ||||||
Sales of bicycles and spare parts | 9,629,736.29 | 5,156,724.06 | 46.45% | -41.41% | -37.11% | -3.66% |
Lithium battery material | 19,745,299.24 | 19,684,264.57 | 0.31% | 47.30% | 49.22% | -1.28% |
Jewelry and gold | 132,915,435.90 | 124,935,947.83 | 6.00% | 52.66% | 54.36% | -1.03% |
Other | 2,956,106.52 | 2,830,050.13 | 4.26% | 210.21% | 217.92% | -2.33% |
According to region | ||||||
Domestic | 165,246,577.95 | 152,606,986.59 | 7.65% | 40.21% | 47.84% | -4.77% |
According to sale model | ||||||
Direct sales | 165,246,577.95 | 152,606,986.59 | 7.65% | 40.21% | 47.84% | -4.77% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries | Item | Unit | 2021 | 2020 | Y-o-y changes (+,-) |
Bicycle, electric bicycle | Sales volume | 10,000 | 10.83 | 12.79 | -15.32% |
Output | 10,000 | 10.83 | 12.63 | -14.25% | |
Inventory | 10,000 | 0.02 | 0.02 | 0.00% | |
Lithium battery material | Sales volume | Ton | 538.38666 | 126 | 327.29% |
Output | |||||
Inventory | |||||
Purchasing volume | Ton | 538.38666 | 126 | 327.29% | |
Lithium battery material | Sales volume | 10,000 sets | 1,930 | 1,063 | 81.56% |
Output | |||||
Inventory | |||||
Purchasing volume | 10,000 sets | 1,930 | 1,063 | 81.56% |
Lithium battery material | Sales volume | 10,000 square meters | 136.3 | 27.28 | 399.63% |
Output | |||||
Inventory | |||||
Purchasing volume | 10,000 square meters | 136.3 | 27.28 | 399.63% | |
Lithium battery material | Sales volume | 10,000 | 34.585 | 225 | -84.63% |
Output | |||||
Inventory | |||||
Purchasing volume | 10,000 | 34.585 | 225 | -84.63% | |
Jewelry and gold | Sales volume | Piece | 73,628 | 43,673 | 68.59% |
Output | |||||
Inventory | Piece | 3,803 | 3,019 | 25.97% | |
Purchasing volume | Piece | 74,412 | 44,986 | 65.41% |
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
1. Revenue from bicycle business mainly refers to the brand fee income earned based on the number of complete bicycles, proportionof traditional vehicle sales declined significantly.
2.The jewelry and gold business from subsidiary Xinsen are fully carried out in the year, last year, Xinsen was just starting up afterestablishment of the business.
(4) Performance of significant sales contracts, major procurement contract entered into by the company upto the current reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
Unit: RMB/CNY
Industries | Item | 2021 | 2020 | Y-o-y changes (+,-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Sales of bicycles and spare parts | Sales of bicycles and spare parts | 5,156,724.06 | 3.38% | 8,199,519.90 | 7.94% | -37.11% |
Lithium battery material | Lithium battery material | 19,684,264.57 | 12.90% | 13,191,331.01 | 12.78% | 49.22% |
Jewelry and gold | Jewelry and gold | 124,935,947.83 | 81.87% | 80,940,595.81 | 78.41% | 54.36% |
Other | IT business | 2,830,050.13 | 1.85% | 890,177.01 | 0.86% | 217.92% |
ExplanationNil
(6) Whether the changes in the scope of consolidation in Reporting Period
□Yes √No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) | 144,770,923.43 |
Proportion in total annual sales volume for top five clients | 87.61% |
Ratio of related parties in annual total sales among the top five clients | 0.00% |
Information of top five clients of the Company
Serial | Name | Sales (RMB) | Proportion in total annual sales |
1 | Client 1 | 50,175,247.88 | 30.36% |
2 | Client 2 | 46,845,161.35 | 28.35% |
3 | Client 3 | 18,341,278.46 | 11.10% |
4 | Client 4 | 16,751,032.35 | 10.14% |
5 | Client 5 | 12,658,203.39 | 7.66% |
Total | -- | 144,770,923.43 | 87.61% |
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) | 108,927,207.08 |
Proportion in total annual purchase amount for top five suppliers | 71.38% |
Ratio of related parties in annual total sales among the top five suppliers | 0.00% |
Information of top five suppliers of the Company
Serial | Name | Purchase (RMB) | Proportion in total annual purchase |
1 | Supplier 1 | 55,287,701.91 | 36.23% |
2 | Supplier 2 | 46,191,345.21 | 30.27% |
3 | Supplier 3 | 2,901,402.77 | 1.90% |
4 | Supplier 4 | 2,419,911.50 | 1.59% |
5 | Supplier 5 | 2,126,845.69 | 1.39% |
Total | -- | 108,927,207.08 | 71.38% |
Other notes of main suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB/CNY
2021 | 2020 | Y-o-y changes (+,-) | Note of major changes | |
Sales expenses | 3,303,956.30 | 2,540,657.03 | 30.04% | Increase of the sales expenses due to the growth of revenue |
Administrative expenses | 6,154,605.29 | 4,783,608.32 | 28.66% | |
Financial expenses | 10,640.11 | 18,718.74 | -43.16% | |
R&D expenses | 2,037,197.58 | 2,506,877.57 | -18.74% |
4. R&D investment
√ Applicable □ Not applicable
Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
R&D of the bicycle clutching structure reset force-saving technology | Save more energy when cycling | R&D in progress | Further improve the comfort of bicycle riding by improving the bicycle clutching structure | Enhance customer experience and riding comfort,improve the product superiority |
R&D of multi-control points spontaneous combustion protection technology for electric vehicle | Enhance the electric vehicle spontaneous combustion protection | R&D in progress | Further improve the effect of spontaneous combustion protection of electric vehicles | Enhance product safety and improve the business of the Company |
Design of the stress-bearing structure for external buckle | Enhance the load-bearing capability | R&D in progress | Further improve the performance of load-bearing structure | Improve the load-bearing performance to better meet customer needs |
bicycle wheel | ||||
R&D of the drum brake control technology for electric vehicles with heat dissipation structure | Enhance the drum brake control performance of electric vehicles | R&D in progress | Further improve the drum brake control performance of electric vehicles | Improve product safety and enhance the business of the Company |
R&D of the battery leakage prevention technology for U-zone type electric vehicle | Improve the effect of battery leakage prevention for electric vehicle | R&D in progress | Further improve the battery leakage prevention for electric vehicle | Enhance product performance and improve the quality |
R&D of the split force cushioning damping technology for the mountain bike | Riding stability | R&D in progress | Further improve the overall performance of mountain bikes | Enhance product performance and improve the quality |
Personnel of R&D
2021 | 2020 | Change ratio(+,-) | |
Number of R&D (people) | 19 | 24 | -20.83% |
Ratio of number of R&D | 31.67% | 36.92% | -5.25% |
Educational background | —— | —— | —— |
Undergraduate | 6 | 9 | -33.33% |
Master | 0 | 0 | 0.00% |
Below bachelor’s degree | 13 | 15 | -13.33% |
Age composition | —— | —— | —— |
Under 30 | 2 | 2 | 0.00% |
30~40 | 1 | 2 | -50.00% |
Over 40 | 16 | 20 | -20.00% |
Investment of R&D
2021 | 2020 | Change ratio(+,-) | |
R&D investment (RMB) | 2,037,197.58 | 2,506,877.57 | -18.74% |
R&D investment/Operation revenue | 1.23% | 2.13% | -0.90% |
Capitalization of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
Capitalization of R&D investment/R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation revenue than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB/CNY
Item | 2021 | 2020 | Y-o-y changes (+,-) |
Subtotal of cash in-flow arising from operation activity | 208,259,853.20 | 121,626,558.28 | 71.23% |
Subtotal of cash out-flow arising from operation activity | 192,585,920.33 | 117,684,329.32 | 63.65% |
Net cash flow arising from operating activities | 15,673,932.87 | 3,942,228.96 | 297.59% |
Subtotal of cash in-flow arising from investment activity | 64,500.00 | -100.00% | |
Subtotal of cash out-flow arising from investment activity | 18,890.56 | 18,118.82 | 4.26% |
Net cash flow arising from investment activities | -18,890.56 | 46,381.18 | -140.73% |
Subtotal of cash in-flow arising from financing activity | 9,825,000.00 | -100.00% | |
Subtotal of cash out-flow arising from financing activity | 2,296,062.44 | ||
Net cash flow arising from financing activities | -2,296,062.44 | 9,825,000.00 | -123.37% |
Net increased amount of cash and cash equivalent | 13,358,979.87 | 13,813,610.14 | -3.29% |
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
The other payable formed arising from the receipt of prior payment for goods and receipt of repurchase payment for the Shajingcooperation plots on behalf of the management in the current Period
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√ Applicable □ Not applicable
The other payable formed arising from the receipt of prior payment for goods and receipt of repurchase payment for the Shajingcooperation plots on behalf of the management in the current PeriodV. Analysis of the non-main business
√ Applicable □ Not applicable
Unit: RMB/CNY
Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) |
VI. Analysis of assets and liability
1. Major changes of assets composition
Unit: RMB/CNY
Year-end of 2021 | Year-begin of 2021 | Ratio changes (+,-) | Note of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 33,246,957.92 | 34.15% | 19,887,978.05 | 21.67% | 12.48% | |
Account receivable | 46,850,083.59 | 48.12% | 55,031,424.70 | 59.98% | -11.86% | |
Inventory | 8,248,573.77 | 8.47% | 7,729,325.94 | 8.42% | 0.05% | |
Fix assets | 3,439,212.00 | 3.53% | 3,792,133.36 | 4.13% | -0.60% | |
Right-of-use assets | 1,505,258.90 | 1.55% | 3,051,512.28 | 3.33% | -1.78% | |
Contract liability | 124,328.07 | 0.13% | 15,254,713.38 | 16.63% | -16.50% | 预收的款项转入其他应付款 |
Lease liability | 228,302.37 | 0.23% | 3,051,512.28 | 3.33% | -3.10% |
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. The assets rights restricted till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20F Lianxin JiaYuan,Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were affordable housing purchasedfrom the Housing and Construction Bureau of Luohu District to provide to enterprise talents for living. The contract stipulated thatthe purchasing enterprise is not allowed to conduct any form of property rights transaction with any units or individual other than thegovernment.
VII. Investment analysis
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
Company name | Type | Main business | Register capital | Total assets | Net assets | operation revenue | Operating profit | Net profit |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Subsidiary | Supply chain business of jewelry and gold | 200,000,000 | 46,442,081.76 | 36,869,944.43 | 132,915,435.90 | 2,631,422.30 | 2,454,072.50 |
Shenzhen Emmelle Industrial Co., Ltd. | Subsidiary | Distribution of bicycles and spare parts | 5,000,000 | 13,390,171.56 | 3,675,601.16 | 1,860,173.32 | -849,317.86 | -1,634,645.53 |
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of holding and shareholding companies
1.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, the balance of minority equityat period-end amounting to 13,396,980.54 Yuan.
2.The Company holds 70 percent equity of the Shenzhen Emmelle Industrial Co., Ltd., the balance of minority equity at period-endamounting to 1,096,312.26 Yuan.
X. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Future Development Prospects
i. Development trend of the industry the Company operates in and market competition pattern it deals with:
In the gold and jewelry industry, in the context of China’s sustained rapid economic growth and rising per capita income levels, inaddition to meeting the need for keeping the value, the jewelry consumption is also a requirement for people to pursue fashion andshow personality. At present, China is one of the world’s largest, most important, and fastest-growing jewellery markets, theconsumption of many jewellery categories ranks in the forefront of the world, among which the sales of gold, silver, platinum, jade,pearls and other products rank first in the world. China’s jewelry gold industry market has formed a three-legged pattern of domestic,Hong Kong and foreign brands, and the market shares continue to be concentrated. At present, China’s per capital jewelryconsumption is still far lower than that of developed countries, and our jewelry gold consumption market still has a lot of room forimprovement, but the market competition is fierce. In August 2019, the company invested in the establishment of a holdingsubsidiary, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the supply chain business of jewelryand gold. Jewelry and gold business of the Company has gradually become the core business of the Company through theendogenous development
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs, manufacturingcosts, capital costs, and material costs. In April 2019, the implementation of the new national standard of safety technicalspecifications for electric bicycles accelerated the industry reshuffle and resulted a new round of industry shock. In addition, in thepast two years, the bike sharing has been violently oscillating the bicycle industry and the upstream supply chain operations withcapital advantages, due to the lack of profit model and capital chain problems, its aftershocks continue to rattle the industry’srecovery. At the same time, as a traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025”strategy, under the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, Structure Optimization,and Talent Based”, took the important opportunity to speed up the transformation and upgrading, ushered in the developmentopportunity of the implementation of the new national standards for electric bicycles, and also faced with the important challenges ofe-commerce development impacts on channels, channel integration and Internet+. China has the world’s largest production andmarketing of electric bicycles, after years of development, electric bicycles have gradually become an important means oftransportation for consumers on everyday short-distance trips, at present, there are about 200 million bicycles in the entire society.Structural body, motor, power battery, and control system are the core components of electric bicycles, CBC has been closelyfollowing up the research on their technological development, application development, and commercial value for a long period oftime, and has determined the qualified suppliers for core components year by year. As one of the core components of electric bicycle,power batteries have been mainly lead-acid batteries in the past decade or two, with the development and popularization of newenergy technologies and new energy materials, it is expected to be replaced by the lithium batteries in the future. The implementationof the new national standard for electric bicycle safety technical specifications has comprehensively improved the safety performanceof electric bicycles, and adjusted and improved technical indicators such as speed limits, vehicle quality, and pedaling ability. Thenew standard is close to people’s livelihood and serving people’s livelihood, which improved the application space of lithium batteryenergy storage, and the lithium battery electric bicycle is ushering in a new stage of development.
ii. Future development opportunity and new yearly business plan of the Company:
On the basis of business work over the past few years, the business plan of the Company for 2022 is:
1. Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of the company andmake efforts to promote the successful completion of non-public offering of shares.
2. Standardize operations, further reform and improve the internal operation management system, assessment mechanism, strengthenthe construction of management teams, business teams and technical teams. Rolling perfected the development plan of the Company.
3. In terms of gold and jewelry business, further establish supplier systems and expand customer resources, improve internal businessprocesses and internal control system construction, promote the construction of a supply chain system platform to improveoperational quality and efficiency, and strive to achieve greater growth in operating income.
4. In terms of electric bicycles and lithium battery material business, for key mature areas such as Shandong, Henan, Hebei, Jiangsu,etc., organize supply of goods, control quality, coordinate transportation and improve after sales order by order, and ensure stableorder business; for other areas, actively strengthen communication and cooperation with ODM factories to give full play to ODMfactories' regional advantages, use its existing sales network for distribution cooperation, expand the brand influence and distributioncooperation basis of the EMMELLE brand in the distribution team of other cooperative manufacturers, so as to promote the growthof orders.
5.Parallel the negotiation and responding to the counterclaims, facilitate the early resolution of termination of the cooperationcontract of the urban renewal project for phase II of Zhonghua Garden.
6. Strengthen the background management and office automation, and improve the support degree of background departments tofront desk business.
iii. Risk factors adverse to the Company’s development:
(1) The international political and economic situation was complex and severe, wars and geopolitical disputes appeared one after
another, the global pandemic continued, and commodity prices fluctuated at high levels.
(2) China’s economic development faced triple pressures of demand contraction, supply shock, and weakening expectations. Localoutbreaks occurred from time to time. The recovery of consumption and investment was slow, the supply of energy and raw materialswas still tight, the pressure of imported inflation increased, the production and operation of small, medium and micro enterprises andindividual businesses were difficult, the task of stabilizing employment became more arduous, and there were many hidden risks inthe economic and financial fields.
(3) Domestic local epidemics still occurred from time to time, which posed problems and challenges to business liaison, materialsupply, production organization, sales and transportation, etc., and accordingly affected materials, transportation, labor, managementcost and operational efficiency.
In the fave of the above problems, the central government and governments at all levels have taken multiple measures to stabilize thepeople’s livelihood, stabilize the enterprises and employment, the Company will strive to maintain stability and seek developmentthrough increase the income and reduce the expenditures. Combined withe the actual situation of its own thin family backgroundafter the reorganization, on the one hand, the Company continue to adhere to the traditional business development of electric bicycles,and strive to carry out the R&D of new products and online & offline sales and brand management works; at the same time, based onthe long-term process of the electric bicycle business, the follow-up research of related industrial projects and technologyapplications in the upstream and downstream of the industrial chain have been carried out accordingly, and on the basis of extensivebusiness contacts and businesses in previous years, it continued to expand the lithium battery material business to enrich the mainbusiness. On the other hand, continued to promote the development of the jewelry gold supply chain business and expand thebusiness dimension. In August 2019, the company and Shenzhen Zuankinson Jewelry Co., Ltd. jointly invested 6.5 million yuan toestablish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the controllingshareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the shares.According to the actual situation of business development, in February 2020, the two parties decided to increase the capital ofShenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capitalhas been in place in June 2020. In order to meet the future operation and development needs of Shenzhen Xinsen Jewelry GoldSupply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability, the company signeda capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, andonce again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registeredcapital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, whichwould be successively invested in accordance with its own funds and the availability of funds raised from the non-public issuance ofA shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, thecompany's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capital increase. On the onehand, we strived to promote the selection of the company's restructuring party and plan for the non-public issuance of stocks, hopingto improve the company's business strength and development potential.
In terms of the planning of a non-public offering of shares, on December 30, 2020, the company held the third extraordinary generalmeeting of shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raisefunds from Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would beused to supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right ofcontrol. On November 11, 2021, the Company received the Approval of Non-public Issue of Shares under the name of ShenzhenChina Bicycle Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC, which approved the application for the abovenon-public offering of shares. The Approval will be valid for 12 months from the date of approval of the issue. Relevant follow-upworks are in progress.
XII. Reception of research, communication and interview during the reporting period
√ Applicable □ Not applicable
Time | Reception location | Way | Reception type | Object | Main content and information provided | Basic situation index of investigation |
Jan.-Mar. 2021 | The Company | Telephone communication | Individual | Individual investor | Consulting company restructuring problem | N/A |
April- June 2021 | The Company | Telephone communication | Individual | Individual investor | Inquiry progress of the private placement | N/A |
July - September 2021 | The Company | Telephone communication | Individual | Individual investor | Inquiry the progress of urban renewal project of Zhonghua Garden (Phase II) | N/A |
October - December 2021 | The Company | Telephone communication | Individual | Individual investor | Inquiry progress of the private placement | N/A |
Section IV Corporate GovernanceI. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law" as well as "ListingCorporation Management Standards" and other relevant laws, regulations and normative documents. We combined the actualsituation, constantly improved the corporate governance structure, and strive to build a modern enterprise system. Operation,assembling and holding of general meeting of shareholders, the Board of Directors and board of supervisors were strictly withrelevant rules of procedure. Thus we protected interests of the Company. The actual situation of corporate governance structure wasin accordance with the release of normative documents about the listing Corporation management rules from China SecuritiesRegulatory Commission.
1.Shareholders and Shareholders General Meeting
During the reporting period, the convening and convening procedures, the qualification of persons attending the general meeting andvoting procedures were in compliance with the Company Law, the Rules for General Meeting of Shareholders of the ListedCompanies, the Article of Association, other relevant laws and regulations. For the proposals deliberated in the Meeting are providedwith internet voting by the Company to facilitate the exercise of shareholder’s rights and further protect the legitimate interest of theshareholders.
2. Listed companies and first largest shareholder
During the reporting period, the Company has no controlling shareholders and no actual controllers. The Company has independentbusiness and autonomous management capabilities, major decision of the Company are made by the general meeting of shareholdersin accordance with the law. The major shareholder has exercise their rights in a regulated manner and has not acted to the detrimentof the Company and interest of the small and medium shareholders.
3. Directors and BOD (Board of Directors)
The Company strictly follow the laws and provision of Article of Association, directors of the Company are able to attend the BoardMeeting and shareholders general meeting in a serious and responsible manner, and properly perform their duties as directors in linewith the Article of Association. The special committees under the BOD carry out their works in accordance with the implementationrules of the committee and perform their duties conscientiously.
4.Supervisor and BOS(Board of Supervisory)
The Company strictly follow the laws and provision of Article of Association, supervisor of the Company are able to perform theirduties diligently and conscientiously, to be able to attend shareholders general meeting in the spirit of responsibility to shareholders,to attend the on-site meetings of the BOD and to supervise the directors, the decision-making procedures and resolution of the Board,as well as the operation of the Company in line with the law. And they able to supervise the finances and legal compliance of thedirectors and senior executives in the performance of their duties.
5. Information disclosure
The Company strengthens the management of information disclosure and discloses the information truthfully, accurately, timely andcompletely, in strict accordance with the relevant laws and regulations as well as the Information Disclosure Management System.During the reporting period, the Securities Times, Hong Kong Commercial Daily and Juchao Website (http://www.cninfo.com.cn)are the media for information disclosure designated by the Company to ensure that all investors have fair access to the company’s
information.
6. Investor relations
The Company lays great stress on maintaining the good communication with investors. During the reporting period, by means of theperformance communication meeting and various means such as online group reception days for listed companies, the Companyintroduce the development strategy and business development to the investors; the Company actively uses the investor relationsinteractive platform as an important channel of communication with investors, especially small and medium-sized investors, andanswers investor’s questions on the platform in a timely and serious manner.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controllerin ensuring the Company’s assets, personnel, finance, organization and businessesThe Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owesindependent and completed self-operation ability.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Resolutions |
Annual General Meeting of 2020 | AGM | 12.41% | 2021-06-28 | 2021-06-29 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of Annual General Meeting 2020 (No.: 2021026) |
First Extraordinary shareholders general meeting 2021 | Extraordinary shareholders general meeting | 11.79% | 2021-10-12 | 2021-10-13 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of |
First Extraordinary shareholders general meeting 2021 (No.: 2021036) | |||||
Second Extraordinary shareholders general meeting 2021 | Extraordinary shareholders general meeting | 12.09% | 2021-12-23 | 2021-12-24 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of Second Extraordinary shareholders general meeting 2021 (No.: 2021056) |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) | Reasons for increase or decrease of shares |
Li Hai | Director | Currently in office | Male | 53 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
President | Currently in office | Male | 53 | 2013-09-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable | |
Chairman | Currently in office | Male | 53 | 2015-04-15 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable | |
Yao Zhengwang | Director | Currently in office | Male | 47 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Cao Fang | Director | Currently in office | Male | 48 | 2010-08-26 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Yang Fenbo | Director | Currently in office | Male | 65 | 2006-06-30 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Sun Longlong | Director | Currently in office | Male | 49 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Secretary of the Board | Currently in office | Male | 49 | 2012-05-17 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable | |
CFO | Currently in office | Male | 49 | 2017-05-22 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable | |
Zhong Hua | Director | Currently in office | Male | 58 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Yang Lan | Independent director | Currently in office | Female | 53 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Song Xishun | Independent director | Currently in office | Male | 59 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Zhang Zhigao | Independent director | Currently in office | Male | 57 | 2017-06-29 | 2020-06-28 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Li Xiang | The convener of the board of supervisors | Currently in office | Male | 48 | 2014-06-27 | 2021-02-12 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Zheng Zhonghuan | Supervisor | Currently in office | Male | 60 | 2011-06-27 | 2021-02-12 | 5,276 | 0 | 0 | 0 | 5,276 | Not applicable |
Li Jialin | Staff Supervisor | Currently in office | Male | 61 | 2014-05-22 | 2021-02-12 | 0 | 0 | 0 | 0 | 0 | Not applicable |
Total | -- | -- | -- | -- | -- | -- | 5,276 | 0 | 0 | 0 | 5,276 | -- |
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior executives
□Yes √No
Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors andsenior executive
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting; he took the turns ofdeputy manager of finance department, assistant CFO, secretary of the Board and vice president, etc. of the Company, and now heserves as chairman, legal representative and president of the Company.
Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of Supervision Office,Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department of Shenzhen Guomin InvestmentDevelopment Co. Ltd. and deputy general manager of Administration Center of Compliant Risk Control, as well as director, secretaryof the Board and convener of supervisory committee of CBC; now he serves as director of the Company and supervisor of LeshanCity Commercial Bank Co., Ltd.
Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of project manager of marketing and managementdepartment in headquarter of Life Insurance, associate of general manager of marketing and management headquarter as well asgeneral manager of market and business department; he acted as member of planning team of Life Insurance Branch inGuangdong. And served in strategy and development center, Office of the Chairman, Supervision office; he serves as deputy GM ofShanghai Branch of Life Insurance in 2012; now he is the person in charge of the sales management center in Funde InsuranceHolding
Mr. Yang Fenbo, born in 1957, senior economist with master degree of MBA and engineer, held the position of minister ofdevelopment department, concurrently minister of science and technology department, assistant general manager, assistant tochairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took the GM and chairman of Guangdong SunriseHolding Co., Ltd and the Chairman of Shenzhen Lionda Group; now, he is the senior consultant of Shenzhen Liona Group Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a bachelor degree, abachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao Industry Co., Ltd. and Shenzhen SolarPipe Co., Ltd.; he worked in the Company since May 1999, and successively served as Deputy Manager of financial department,Manager, manager of comprehensive management department, manager of enterprise management department, now he serves asDirector, CFO and secretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in the Company since December 1991, andhave successively held the posts of director of the quality management dept., director of testing center, deputy GM and GM of thequality management dept., now he serves as director of the Company, director of OEM Management and Manager of Quality ControlDepartment, and Chairman and General Manager of Shenzhen EMMELLE Cloud Technology Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, a certified public accountant,and an auditor. She successively served as a member of Guiyang Audit Bureau, the head of Zhuhai BDO China Shu Lun PanCertified Public Accountants, the head of Shanghai Lixin Changjiang Certified Public Accountants, Zhuhai Branch, the head ofGuangdong Lixin Changjiang Certified Public Accountants, and the senior manager of Pan-China Certified Public Accountants
(LLP), Guangdong Branch; Investment Director of Guangzhou Securities Innovation Investment Company, deputy head ofGuangdong Pujinxinghua Tax Agent Co., Ltd., and the deputy head of Guangdong Lixin Changjiang Certified Public Accountants.Since June 29, 2017, she serves as an independent director of the Company.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as a teacher of PLAUniversity of Foreign Language, took office at Public Security Bureau of Xiamen City, Xiamen City Bureau of Culture, served as thedeputy dean of Cultural Industry School of Xiamen University of Technology and an arbitrator of Xiamen City Personnel DisputeArbitration Committee. He has been teaching at Xiamen University of Technology since 2003, and currently serves as Independentdirector of the company, the deputy dean (worked since January 2013, part-time) of Cultural Development Institute of XiamenUniversity of Technology, a lawyer (part-time) of Zhong Yin (Xiamen) Law Firm, an independent director (part-time) of AnkeeFood Co., Ltd., and the vice chairman (part-time) of Xiamen Language Association.
Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, the practicing lawyer with Chinese CPA and certifiedappraiser qualifications; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He used to be atechnician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce, and a partner lawyer ofShanghai Alshine Law Firm; served as an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independent director ofShanghai Norcent Technology Development Co., Ltd., an independent director of Shanghai Xingye Real Estate Co., Ltd andZhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City; he currently serves as a director of Zhonggeng FundManagement Co., Ltd, a director of Shanghai Chengxi Assets Management Co., ltd and independent director of China ResourcesMicroelectronics Limited.
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, the director of theorganization department of the party committee, and the manager of the human resources department at Pacific Life Jiangxi Branch.Since March 2008, he has been serving as the deputy general manager of Shenzhen Guosheng Energy Investment Development Co.,Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked at Shenzhen Light TextileIndustry Company and Shenzhen Light Industry Company. Since October 1985, he has been working at Shenzhen China BicycleCompany (Holdings) Limited, and once served as the deputy manager and manager of planning department, the manager of materialdepartment, and the manager of manufacturing department; and now he serves as a supervisor of the Company, Director of LithiumBattery and New Materials Business Department, and Director of holding subsidiary Shenzhen Xinsen Jewelry Gold Supply ChainCo., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior engineer of the Companyin electrical & mechanical engineering division, GM assistant of Hunan Guangdian Motorcycle Company, manager of the Companyin H&R Dept. now he serves as Staff representative supervisor, commissioner of comprehensive office of the Company and person incharge of the labor union.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Name | Name of shareholder’s unit | Position in shareholder’s unit n | Start dated of office term | End date of office term | Received remuneration from shareholder’s unit (Y/N) |
Yao Zhengwang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Supervisor | 2006-10-09 | Y | |
Li Xiang | Shenzhen Guosheng Energy Investment Development Co., Ltd. | Deputy GM | 2008-03-01 | Y |
Post-holding in other unit
√ Applicable □ Not applicable
Name | Name of other units | Position in other unit | Start dated of office term | End date of office term | Received remuneration from other unit (Y/N) |
Yao Zhengwang | Leshan City Commercial Bank Co., Ltd | Supervisor | 2019-01-10 | 2022-01-09 | Y |
Cao Fang | Sales management center in Funde Insurance Holding | Person in charge | 2016-06-01 | Y | |
Sun Longlong | Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Chairman | 2019-08-23 | 2022-08-22 | N |
Zhong Hua | Shenzhen EMMELLE Cloud Technology Co., Ltd. | Chairman, GM | 2020-07-21 | N | |
Yang Fenbo | Shenzhen Liona Group Co., Ltd. | Senor consultant | 2017-09--12 | Y | |
Yang Lan | Huadong Medicine Co., Ltd. | Independent director | 2019-06-09 | 2022-06-05 | Y |
Yang Lan | Shenzhen Strongteam Decoration Engineering Co., Ltd. | Independent director | 2019-11-01 | 2022-10-30 | Y |
Yang Lan | Guangdong Lixin Changjiang Certified Public Accountants. | Director | 2001-04-01 | Y | |
Song Xishun | Xiamen University of Technology | Associated professor | 2003-09-01 | Y | |
Song Xishun | Zhong Yin (Xiamen) Law Firm | Part-time lawyer | 2003-09-01 | Y | |
Song Xishun | Ankee Food Co., Ltd | Independent director | 2020-12-30 | 2023-12-29 | Y |
Zhang Zhigao | Shanghai Xuan Lun Law Firm | partner lawyer | 2007-12-01 | Y | |
Zhang Zhigao | Zhonggeng Fund Management Co., Ltd | Director | 2009-07-21 | N | |
Zhang Zhigao | Shanghai Chengxi Assets Management Co., ltd | Director | 2010-05-10 | N | |
Zhang Zhigao | China Resources Microelectronics Limited. | Independent | 2019-04-24 | 2022-04-23 | Y |
director | |||||
Zhang Zhigao | Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City | Director | 2013-12-31 | Y | |
Zheng Zhonghuan | Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd | Director | 2019-08-23 | 2022-08-22 | N |
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors andsenior management during the reporting period
□ Applicable √ Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of remuneration of directors, supervisors, senior management | According to relevant rules of the Article of Association, the general meeting of shareholders decides remuneration of directors and supervisors. The Board of Directors decides senior management’s. |
Confirmation basis of remuneration of directors, supervisors and senior management | The Company refers to the position rank and comprehensive industry level. And then general meeting of shareholders approves compensation standard and allowance of independent directors. According to the "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation standards the Company issues annual performance salary. |
Actual payment ofremuneration of directors,supervisors and seniormanagement
Actual payment of remuneration of directors, supervisors and senior management | The Company strictly paid remuneration of directors, supervisors and senior management accordingly with decision procedure and confirmation basis. Total payment for remuneration of directors, supervisors and supervisors amounted to 1.4578 million yuan from January to December in 2021. |
Remuneration for directors, supervisors and senior executives in reporting period
Unit: 10 thousand Yuan
Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
Li Hai | Director | Male | 53 | Currently in office | 61.4 | N |
Sun Longlong | Director | Male | 49 | Currently in office | 24.95 | N |
Zhong Hua | Director | Male | 58 | Currently in office | 18.55 | N |
Zheng Zhonghuan | Supervisor | Male | 60 | Currently in office | 13.85 | N |
Li Jialin | Staff Supervisor | Male | 61 | Currently in office | 12.75 | N |
Yang Lan | Independent director | Female | 53 | Currently in office | 4.76 | N |
Song Xishun | Independent director | Male | 59 | Currently in office | 4.76 | N |
Zhang Zhigao | Independent director | Male | 57 | Currently in office | 4.76 | N |
Total | -- | -- | -- | -- | 145.78 | -- |
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
The 28th Session of 10th BOD | 2021-04-23 | 2021-04-27 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of the 28th Session of 10th BOD (No.: 2021012) |
The 29th Session (interim) of 10th BOD | 2021-04-29 | 2021-04-30 | Deliberated only one proposal as the Q1 Report of 2021, which was disclosed on April 30, 2021 |
The 30th Session (interim) of 10th BOD | 2021-06-04 | 2021-06-05 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 30th Session (interim) of 10th BOD (No.: 2021020) |
The 31st Session of 10th BOD | 2021-08-25 | 2021-08-27 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 31st Session of 10th BOD (No.: 2021029) |
The 32nd Session (interim) of 10th BOD | 2021-09-24 | 2021-09-25 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 32nd Session (interim) of 10th BOD (No.: 2021033) |
The 33rd Session (interim) of 10th BOD | 2021-10-26 | 2021-10-27 | Deliberated only one proposal as the Q3 Report of 2021, which was disclosed on October 27, 2021 |
The 34th Session (interim) of 10th BOD | 2021-11-11 | 2021-11-12 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 34th Session (interim) of 10th BOD (No.: 2021042) |
The 35th Session (interim) of 10th BOD | 2021-11-16 | 2021-11-17 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 35th Session (interim) of 10th BOD (No.: 2021048) |
The 36th Session (interim) of 10th BOD | 2021-12-07 | 2021-12-08 | Refer to the Juchao Website (www.cninfo.com.cn): Notice of Resolution of 36th Session (interim) of 10th BOD (No.: 2021053) |
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting and Shareholders General Meeting | |||||||
Director | Times of Board meeting supposed to attend in the report period | Times of Presence | Times of attending the Board Meeting by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attend the general meeting |
Li Hai | 9 | 9 | 0 | 0 | 0 | N | 3 |
Yao Zhengwang | 9 | 1 | 8 | 0 | 0 | N | 2 |
Cao Fang | 9 | 1 | 8 | 0 | 0 | N | 1 |
Yang Fenbo | 9 | 4 | 5 | 0 | 0 | N | 2 |
Sun Longlong | 9 | 9 | 0 | 0 | 0 | N | 2 |
Zhong Hua | 9 | 9 | 0 | 0 | 0 | N | 3 |
Yang Lan | 9 | 1 | 8 | 0 | 0 | N | 1 |
Song Xishun | 9 | 0 | 9 | 0 | 0 | N | 1 |
Zhang Zhigao | 9 | 0 | 9 | 0 | 0 | N | 1 |
Explanation of absent the Board Meeting for the second time in a rowNil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes √ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
√ Yes □ No
Director's statement to the Company that a proposal has been or has not been adoptedDuring the reporting period, the directors carefully deliberated all proposals submitted to the BOD and voted in favor of theproposals that required voting, without any opposition or abstention, and raised no objection to the proposals of the Board for theyear.VII. Performance of Duties by Specialized Committees under the Board Meeting in theReporting Period
Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
Audit committee | Yang Lan, Zhang Zhigao, Cao Fang | 3 | 2021-04-23 | Deliberation of the Annual Report 2020 and related internal control reports | Draws management’s attention on relevant proposals | N/A | N/A |
2021-08-23 | Renewal of the accounting firms | N/A | N/A | N/A | |||
2021-12-24 | Pre-communication between the audit committee and annual auditor regarding the audit of annual report 2021 | Implement relevant audit works | N/A | N/A |
VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company at period-end (people) | 35 |
Employee in-post of main Subsidiaries at period-end (people) | 26 |
The total number of current employees at period-end (people) | 61 |
The total number of current employees to receive pay (people) | 61 |
Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
Professional composition | |
Category of professional composition | Numbers of professional composition (people) |
Production personnel | 11 |
Salesperson | 12 |
Technicians | 19 |
Financial personnel | 7 |
Administrative personnel | 12 |
Total | 61 |
Education background | |
Education | Numbers (people) |
Postgraduate | 1 |
Undergraduate | 21 |
Junior college | 21 |
Below junior college | 18 |
Total | 61 |
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
3. Training programs
In order to improve the quality of staff, the company has planned and targeted training activities every year. The training activitiesfor administrative personnel and technical staff mainly to improve their professional skills, management quality and ability
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves planFormulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period
□ Applicable √ Not applicable
The company is profitable during the reporting period and the parent company has positive profit available for distribution to
shareholders but no cash dividend distribution plan has been proposed
□ Applicable √ Not applicable
Profit distribution plan and capitalizing of reserves for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe year.XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentivesthat have not been implemented.XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the provision of Basic Standards for Enterprise Internal Control and its supporting guidelines, the Companyrenewal and improve the internal control system of the Company during the reporting period. Established a set of internal controlsystem with scientific design, simple application and effective operation. Regularly, the Company carried out special work of systemcombing and optimization every year, and the work is effectively integrated with the internal control assessment of the Company.Through the system evaluation, achieved the improvement of the system, standardization of the effectiveness of the establishmentand optimization of the process, and full landing in executability.
2. Details of major defects in internal control identified during the reporting period
□Yes √No
XIII. Management and controls on the subsidiary during reporting period
Name | Integration plans | Integration progress | Problems encountered in integration | Measures taken to resolve | Progress in solution | Follow-up solution plan |
Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
XIV. Internal control self-appraisal report or internal control audit report
1. Self-appraisal Report of Internal Control
Disclosure date of full internal control evaluation report | 2022-04-26 |
Disclosure index of full internal control evaluation report | Self-Appraisal Report of Internal Control 2021 of CBC released on Juchao website | |
The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial statements | 100.00% | |
The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's consolidated financial statements | 100.00% | |
Defects Evaluation Standards | ||
Category | Financial Reports | Non-financial Reports |
Qualitative criteria | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend business for rectification and cause the Company’s business stop of etc. General defect: other control defect besides material defect and major defect. | Material defect: (1) inefficiency of environment control; (2) inefficiency of internal supervision; (3) direct impact on major mistakes of investment decisions; (4) directly make the significant error in the financial statements; (5) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the central government and regulatory agencies, and being sentenced to a fine or penalty, being restricted industry exit, canceling business license and being forced the closure of etc. Major defect: (1) indirect impact on major mistakes of investment decisions; (2) indirectly make the significant error in the financial statements; (3) Lack of important system; (4) violation of the laws, regulations, rules and other normative documents, resulting in investigation of the local government and regulatory agencies, and being sentenced to a fine or penalty, and being ordered to suspend business for rectification and cause the Company’s business stop of etc. General defect: other control defect besides material defect and major defect. |
Quantitative standard | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) General defect: less than or equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit | 1. Potential loss or potential error of total profit: (1) General defect: less than or equal to pre-tax total profit of 3%, (2) Major defect: more than pre-tax total profit of 3%( and absolute amount more than RMB 0.5 million), (3) Material defect:: more than 5% of pre-tax total profit and absolute amount more than RMB 1 million; 2. Potential loss or potential error of operating income: (1) General defect: less than or equal to operating income of 1%, (2) Major defect: more than 1% of operating income and less than or equal to 3% of operation income, (3) Material defect:: more than 3% of operating income; 3. Potential loss or potential error of total assets: (1) General defect: less than or equal to 1% of total assets, (2) Major defect: more than 1% of total profit and less than or equal to 3% of total profit, (3) Material defect:: more than 3% of total profit |
Amount of significant defects in financial reports | 0 | |
Amount of significant defects in non-financial reports | 0 | |
Amount of important defects in financial reports | 0 | |
Amount of important defects in non-financial reports | 0 |
2. Auditing report of internal control
√ Applicable □ Not applicable
Deliberations in Audit Report of Internal Control | |
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2021. | |
Disclosure details of audit report of internal control | Disclosed |
Disclosure date of audit report of internal control (full-text) | 2022-04-26 |
Index of audit report of internal control (full-text) | Juchao Website- Audit Report of Internal Control of Shenzhen China Bicycle Company (Holdings) Limited (TZY Zi[2022] No.26082-1 |
Opinion type of auditing report of IC | Standard unqualified |
Whether the non-financial report had major defects | No |
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
XV. Rectification of Self-examination Problems in Special Governance Actions in ListedCompanyThe company actively studied and implemented the Opinions on Further Improving the Quality of Listed Companies (Guo Fa (2020)No. 14) (hereinafter referred to as “the Opinions”) issued by the State Council. In accordance with the requirements of CSRC’sAnnouncement of Special Action on The Governance of Listed Companies, and in strict accordance with the spirit of the Opinions,the Company Law, Securities Law and other relevant laws and regulations as well as the requirements of normative documents forlisted companies, the company carefully conducted self-examinations against the self-examination list and formed theself-examination checklist report, through this self-examination, the company has a situation where the board of directors has notbeen re-elected after the expiration of the term of office. In view that (1) The company was currently planning the non-publicissuance of A shares, if the non-public issuance of A shares could be successfully completed, the control of the company would bechanged. On December 15, 2020, Shenzhen China Bicycle Company issued the Announcement on the Company’s Signing of theCooperation Agreement, Shenzhen Guosheng Energy Investment Development Co., Ltd. (hereinafter referred to as “GuoshengEnergy”), the company’s largest shareholder, and Wansheng Industry Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as“Wansheng Industry”), the subscriber of the non-public issuance of shares, signed relevant cooperation agreements on matters suchas the seating arrangement of directors and performance commitments. The agreement stipulated that after the completion of thisnon-public issuance of shares, Guosheng Energy would support Wansheng Industry to adjust the members of the board of directorsand the board of supervisors of the listed company within the scope of rights prescribed by relevant laws and regulations, so thatWansheng Industry could elect more than half members of the company’s board of directors and board of supervisors by actuallycontrolling the voting rights of shares in the listed company. (2) On October 25, 2021, the company’s application for the privateplacement of A shares was reviewed and approved by the Issuance Examination Commission of the China Securities RegulatoryCommission (hereinafter referred to as the CSRC). On November 11, 2021, the company received the Approval for the Non-publicIssuance of Shares by Shenzhen China Bicycle (Group) Co., Ltd.” (ZJXK [2021] No. 3552) issued by the CSRC, approving thecompany to issue not more than 137,836,986 new non-public issuance of shares, and the validity period of the approval is 12 monthsfrom the date of approval for the non-public offering of shares. At present, all parties involved in the fixed increase are activelyworking to promote the implementation of this work. In order to facilitate the smooth completion of the fixed increase work as soonas possible, the company intends to postpone the re-election of the board of directors and the board of supervisors immediately afterthe completion of the non-public issuance of shares, which shall be completed by November 8, 2022 at the latest. During this period,all members of the company’s board of directors, board of supervisors and senior executives shall continued to perform theobligations and duties of directors and senior executives in accordance with laws, regulations and the Articles of Association.
Section V. Environmental and Social ResponsibilityI. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes √ No
Administrative punishment for environmental problems during the reporting period
Company name or subsidiary name | Reason for punishment | Violation | Punishment result | Impact on the production and operation of listed company | The company’s rectification measures |
Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
Other environmental information disclosed refer to key pollutersNot applicableMeasures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √ Not applicable
Reasons for not disclosing other environmental informationNot applicableII. Social responsibilityDuring the reporting period, the company conscientiously fulfilled its corporate social responsibility, paid attention to protecting theinterests of shareholders, especially minority shareholders; Treated suppliers, customers and consumers with integrity; Earnestlyfulfilled the responsibilities and obligations to the society, shareholders, employees and other stakeholders, created a harmoniousenvironment for enterprise development, and realized the common development of the enterprise and stakeholders.
1. Protection of shareholders' rights and interests
The company strictly complies with the provisions of relevant laws and regulations such as the Company Law, the Securities Lawand the Governance Code for Listed Companies, continuously improves the corporate governance structure, adheres to handing overthe important matters to the resolutions of the shareholders' meeting, provides convenience for medium and small investors toparticipate in the shareholders' meeting, fully listens to the small and medium-sized investors’ reasonable advice on the company'sdevelopment and governance, and safeguards the legitimate rights and interests of shareholders.
In 2021, the board of directors of the company convened 3 shareholders' meetings, the meeting adopted the combination of on-sitevoting and online voting, the votes of small and medium investors were counted separately, provided convenience for the majority ofinvestors to participate in the voting at the shareholders' meeting, and ensured the participation right and supervision right of thesmall and medium-sized investors.
In 2021, the company strengthened communication with investors, especially investors from the public, answered questions aboutwhich the public and investors concerned, and ensured the investors' right to know in line with the Information Disclosure Affairs
Management System and Reception and Promotion Work System and by means of various forms such as the interactive platform ofShenzhen Stock Exchange, hotline of the company’s securities affairs department, and so on.
On May 19, 2021, the company held the 2020 annual performance briefing, in which the company made online communication withinvestors on the company's performance, operating conditions, development prospects and other issues of interest to investors. Atotal of 19 questions were raised by investors during the briefing, which were answered by directors and senior managementpersonnel.
The company is committed to protecting the rights and interests of investors by improving the corporate governance structure,improving the level of information disclosure and investor relationship management, and carrying out investor education, andguiding investors to form value investment concept through real and effective communication. In order to effectively ensuresmooth service channels for investors, the company has arranged full-time personnel to answer investors' hotline calls and answerquestions on the interactive platform, and relevant staff has patiently analyzed the announcement information for investors to helpinvestors understand the company's situation in time.
2. Protection of workers' rights and interests
The company adheres to the people-oriented, comprehensively implements the Labor Law and Labor Contract Law, attaches greatimportance to guarantee of the employees' rights and interests, at the same time, establishes good communication channelsthroughout the whole process of staff management and care, pays attention to staff growth, improves the staff overall quality,cultivates excellent internal training culture system, creates a good learning environment. Meanwhile, the company pays attention toenriching the spiritual life of employees, regularly carries out staff activities, and improves team cohesion. In accordance with theLabor Contract Law of the People's Republic of China and other relevant national and local labor laws and regulations, the companysigns labor contracts with employees to protect their rights and interests. The company and its subsidiaries strictly implement thenational employment system, labor protection system, social security system and medical security system, and pay the housingprovident fund, medical insurance, endowment insurance, unemployment insurance, work-related injury insurance and maternityinsurance for employees according to the state regulations. The company adheres to corporate culture of efficient coordination,people-oriented, on-demand training, training by level, and echelon training. The company establishes internal knowledge sharingsystem, promotes information and knowledge exchange among various modules of the company, and improves team coordinationability. It encourages employees to participate in continuing education and enhances the knowledge structure optimization andprofessional quality promotion of workers at various positions.
3. Protection of rights and interests of suppliers, customers and consumers
The company actively organizes and carries out customer management, takes measures to ensure the rights and interests of customersand actively promotes customer satisfaction and service excellence. It makes full use of the rich social resources in the market, andestablishes a good partnership with suppliers. The company promises not to abuse or misuse consumer information for the protectionof rights and interests of consumers.
III. Consolidating and expanding the achievements of poverty alleviation and ruralrevitalizationNot applicable
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actualcontroller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment andDevelopment Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12
th, Oct., 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civilruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25
th, Oct., 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen MunicipalIntermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Companyto manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, theShenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved thereorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closeddown.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle isable to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombinationparty in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively andpromote the reorganization work with all efforts.V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment andDevelopment Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12
th, Oct., 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civilruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25
th
, Oct., 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen MunicipalIntermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Companyto manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, theShenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved thereorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closeddown.The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle isable to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombinationparty in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively andpromote the reorganization work with all efforts.VI. Explanation of the changes in accounting polices, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
1. Change of accounting policy
(1) On December 7, 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprise No. 21-Lease (CK[2018] No.35). According the Standard, it requires that the amount of right-of-use assets, lease liability, the earnings atbeginning of the year and other related items in the financial statement be adjusted based on the cumulative effect number, with noadjustment to the information in comparable period. There is no impact on the financial statement as a result of the standard
implementation by CBC. The impact on the financial statement for year of 2021 as a result of the implementation of the Standardsince January 1, 2021 is as follow:
Content and reasons for accounting policy changes | Item and amount impacted |
The leased assets are listed as "right-of-use assets", "lease liabilities", and "non-current liabilities due within one year" | Consolidated balance sheet on December 31, 2021, the amount of right-of-use assets was 1,505,258.90 yuan, the amount of lease liabilities on December 31, 2021 was 228,302.37 yuan, and the amount of non-current liabilities due within one year on December 31, 2021 was 1,456,782.04 yuan. The parent company's balance sheet the amount of right-of-use assets on December 31, 2021 was 421,613.45 yuan, the amount of lease liabilities on December 31, 2021 was 121,974.19 yuan, and the non-current liabilities due within one year on December 31, 2021 was 323,646.60 yuan. |
2. Changes in accounting estimates
There were no major changes in accounting estimates during the company's reporting period.
3. Correction of previous accounting errors
During the reporting period of the company, no major prior accounting errors were corrected.
4. Financial statement adjustment at the beginning of the first year when implementation of new leasingstandards
Consolidated Balance Sheet
Unit: RMB/CNY
Item | 2020-12-31 | 2021-1-1 | Adjustment |
Right-of-use asset | - | 3,051,512.28 | 3,051,512.28 |
Non-current liabilities due within one year | - | - | - |
Lease liability
Lease liability | - | 3,051,512.28 | 3,051,512.28 |
Explanation on items adjusted:
CBC implemented the new lease standard from January 1, 2021, and recognnizing the lease as right-of-use assets and lease liability.Except for the short-term lease and lease of low-value assets for which simplified treatment is applied, the initial measurement at costis recorded as “Right-of-use assets”, at the same time, the initial measurement of the present value of the lease payments outstanding atthe commencement date of the lease is recorded as a “lease liability”, and reclassified the “lease liability” due within one year to“non-current liability due within one year”.
Parent Company Balance Sheet
Unit: RMB/CNY
Item | 2020-12-31 | 2021-1-1 | Adjustment |
Right-of-use asset | - | 737,823.53 | 737,823.53 |
Non-current liabilities due within one year | - | - | - |
Lease liability
Lease liability | - | 737,823.53 | 737,823.53 |
Explanation on items adjusted:
CBC implemented the new lease standard from January 1, 2021, and recognnizing the lease as right-of-use assets and lease liability.Except for the short-term lease and lease of low-value assets for which simplified treatment is applied, the initial measurement at costis recorded as “Right-of-use assets”, at the same time, the initial measurement of the present value of the lease payments outstanding atthe commencement date of the lease is recorded as a “lease liability”, and reclassified the “lease liability” due within one year to“non-current liability due within one year”.VII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
□ Applicable √ Not applicable
There was no change in the scope of consolidated statements during the reporting period of the company.VIII. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
Name of domestic accounting firm | Baker Tilly China Certified Public Accountants (LLP) |
Remuneration for domestic accounting firm (in 10 thousand Yuan) | 45 |
Continuous life of auditing service for domestic accounting firm | 6 |
Name of domestic CPA | Qu Xianfu, Deng Jun |
Continuous life of auditing service for domestic accounting firm | 1 |
Re-appointed accounting firms in this period
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
During the reporting period, the company engaged Baker Tilly China Certified Public Accountants (LLP) as the auditing organ forinternal control of the Company, and it is expected to pay 150,000 yuan for internal control auditing.IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
XI. Significant lawsuits and arbitration of the Company
√ Applicable □ Not applicable
Lawsuits (arbitration) | Amount involved (in 10 thousand Yuan) | Resulted an accrual liability (Y/N) | Progress | Trial result and influence | Execution of judgment | Disclosure date | Disclosure index |
Other lawsuits and arbitration (with the company and its subsidiary as the defendants) that did not meet the criteria for disclosure of material lawsuits during the reporting period | 22.37 | N | All cases have been decided or mediated settlement | The Company pays the plaintiff corresponding amount according to the award or mediation | Executed | Not applicable | Not applicable |
Other lawsuits and arbitration (with the company and its subsidiary as the plaintiff) that did not meet the criteria for disclosure of material lawsuits during the reporting period | 143.13 | N | All cases have been decided or mediated settlement | The defendant pays the Company corresponding amount according to the award | Partially executed | Not applicable | Not applicable |
XII. Penalty and rectification
□ Applicable √Not applicable
No penalty and rectification for the Company in reporting period.XIII. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned occurred in the period
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Related party | Relationship | Causes of formation | Whether has non-business capital occupying or not | Balance at period-begin(10 thousand Yuan) | Current newly added(10 thousand Yuan) | Current recovery(10 thousand Yuan) | Interest rate | Current interest(10 thousand Yuan) | Balance at period-end(10 thousand Yuan) |
Debts payable to related party
Related party | Relationship | Causes of formation | Balance at period-begin(10 thousand Yuan) | Current newly added(10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest(10 thousand Yuan) | Balance at period-end(10 thousand Yuan) |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Large shareholder | Subsidiary Emmelle loan | 650 | 0 | 0 | 0.00% | 0 | 650 |
Influence on operation result and financial statue of the Company from related debts | No influence |
5. Contact with the related finance companies
□ Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship and
related parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties
7. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. Planning for non-public offering of shares
On December 30, 2020, the company held the third extraordinary general meeting of shareholders in 2020, reviewed and approvedthe new plan for non-public issuance of A shares, and planned to raise funds from Wansheng Industry Company through non-publicissuance of shares of total amount not exceeding 293.6 million yuan, which would be used to replenish working capital afterdeducting the issuance expenses, and this issuance will lead to changes in the company’s control. On October 25, 2021, thecompany’s application for the non-public issuance of A shares was reviewed and approved by the Issuance Examination Commissionof the China Securities Regulatory Commission (hereinafter referred to as the CSRC). On November 11, 2021, the company receivedthe Approval for the Non-public Issuance of Shares by Shenzhen China Bicycle (Group) Co., Ltd. (ZJXK [2021] No. 3552) issued bythe CSRC, and the validity period of the approval is 12 months from the date of approval for the issuance. Relevant work is currentlyin progress.
2. Matters concerning the termination of the Cooperation Contract of Zhonghua Garden Phase II Urban Renewal and ReconstructionProjectIn order to promote the reconstruction of the Zhonghua Garden Phase II and solve the problem of certificate handling, in 2020, thecompany signed the Cooperation Contract of Zhonghua Garden Phase II Renovation Project with Shenzhen Jianzhi IndustryCompany, the contract was examined and approved by the board of directors and the general meeting of shareholders of the companyand came into force publicly, and then our company and Shenzhen Jianzhi Industry Company established a working team to jointlypromote the performance of the contract and the development of related affairs. In view of the fact that during the projectdevelopment process, the Shenzhen Municipal People’s Congress issued and implemented the Regulations on Urban Renewal ofShenzhen Special Economic Zone on March 1, 2021, as a result, the residents’ willingness to renew which the project should obtainbefore applying for the plan to demolish and rebuild urban renewal units increased from 90% to 95%, and the company’s basis forfulfilling the Cooperation Contract had major changes. Based on the company’s long-term development, and in order to better solvethe problem of handling the property right certificates left by the residents of Zhonghua Garden Phase II, in October 2021, the boardmeeting and the general meeting of shareholders considered and approved that the company would terminate the performance of theCooperation Contract and no longer be a partner of the project.
3. About the company litigation matters
On February 23, 2022, the company received the Subpoena (2022) Yue 0303 Min Chu No. 3787, Complaint, Notice of Response,Civil Ruling Paper (2020) Yue 0303 Zhi Bao No. 498 and other legal documents from Shenzhen Luohu District People’s Court,which has accepted the lawsuit brought by the plaintiff Shenzhen Jianzhi Industrial Development Co., Ltd. against the company onthe grounds of “joint venture and cooperative development of real estate contract disputes”, the amount involved was 30.859 millionyuan. On March 12, 2022, the company received a notice from the Shenzhen Luohu District People’s Court that the court trial
originally scheduled for March 18, 2022 has been rescheduled due to the pandemic, and the specific trial time will be notified later.As of the date of this announcement, the company has not received the notice from the Luohu Court, and the matter has not yet beenheard. The company will actively respond to the lawsuit, safeguard the interests of the company and all shareholders through legalmeans, and will perform the corresponding information disclosure obligations in a timely manner according to the progress of thelawsuit. Investors are advised to pay attention to investment risks.
XVII. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
Nil
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
1. State-owned shares | 0 | 0.00% | 0 | 0.00% | |||||
2. State-owned legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
3. Other domestic shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Domestic natural person’s shares | 3,957 | 0.00% | 3,957 | 0.00% | |||||
4. Foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Foreign natural person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
II. Unrestricted shares | 551,343,990 | 100.00% | 551,343,990 | 100.00% | |||||
1. RMB Ordinary shares | 302,981,008 | 54.95% | 302,981,008 | 54.95% | |||||
2. Domestically listed foreign shares | 248,362,982 | 45.05% | 248,362,982 | 45.05% | |||||
3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
4. Others | 0 | 0.00% | 0 | 0.00% | |||||
III. Total shares | 551,347,947 | 100.00% | 551,347,947 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total common stock shareholders in reporting period-end | 39,625 | Total common stock shareholders at end of last month before annual report disclosed | 40,730 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (found in note 8) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report | 0 |
disclosed (if applicable) (found in note 8) | ||||||||||
Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Information of shares pledged, tagged or frozen | |||
State of share | Amount | |||||||||
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Domestic non-state-owned legal person | 11.52% | 63,508,747 | 0 | 0 | 63,508,747 | ||||
UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0 | 0 | 15,907,850 | ||||
Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | 0 | 0 | 13,909,425 | ||||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 1.50% | 8,281,156 | -22,116 | 0 | 8,281,156 | ||||
Lhasa Xingqing Network Technology Co., Ltd. | Domestic non-state-owned legal person | 0.83% | 4,600,255 | -1,490,000 | 0 | 4,600,255 | ||||
Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0 | 0 | 3,891,124 | ||||
Ge Zhiqiong | Domestic nature person | 0.64% | 3,525,152 | 347,200 | 0 | 3,525,152 | ||||
Xu Hongbo | Domestic nature person | 0.53% | 2,927,319 | -260,200 | 0 | 2,927,319 | ||||
CMS Hong Kong Co., Ltd | State-owned legal person | 0.52% | 2,894,135 | -176,541 | 0 | 2,894,135 | ||||
Shenzhen China Bicycle Company (Holdings) Limited -Special account | Domestic non-state-owned legal person | 0.47% | 2,602,402 | 0 | 0 | 2,602,402 |
for property disposal of bankrupt enterprise | ||||
Strategy investors or general corporation comes top 10 common stock shareholders due to rights issue (if applicable) (see note 3) | N/A | |||
Explanation on associated relationship among the aforesaid shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | |||
Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||
Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 10) | N/A | |||
Particular about top ten shareholders with un-restrict shares held | ||||
Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | ||
Type | Amount | |||
Shenzhen Guosheng Energy Investment Development Co., Ltd. | 63,508,747 | RMB common shares | 63,508,747 | |
UOB Koy Hian (Hong Kong) Co., Ltd. | 15,907,850 | Domestically listed foreign shares | 15,907,850 | |
Guosen Securities (Hong Kong) brokerage Co., Ltd. | 13,909,425 | Domestically listed foreign shares | 13,909,425 | |
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 8,281,156 | Domestically listed foreign shares | 8,281,156 | |
Lhasa Xingqing Network Technology Co., Ltd. | 4,600,255 | RMB common shares | 4,600,255 | |
Li Huili | 3,891,124 | Domestically listed foreign shares | 3,891,124 | |
Ge Zhiqiong | 3,525,152 | RMB common | 611,500 |
shares | |||
Domestically listed foreign shares | 2,913,652 | ||
Xu Hongbo | 2,927,319 | Domestically listed foreign shares | 2,927,319 |
CMS Hong Kong Co., Ltd. | 2,894,135 | Domestically listed foreign shares | 2,894,135 |
Shenzhen China Bicycle Company (Holdings) Limited -Special account for property disposal of bankrupt enterprise | 2,602,402 | RMB common shares | 1,219,089 |
Domestically listed foreign shares | 1,383,313 | ||
Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | ||
Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | N/A |
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: No controlling subjectType of controlling shareholders: Non-existentThe Company does not have the controlling shareholder.
On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen Guosheng EnergyInvestment Development Co., Ltd. the letter said: since obtained controlling rights of the Shenzhen Guosheng Energy InvestmentDevelopment Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011, in view of Ji Hanfei is the first majorityshareholder and largest creditor of CBC, and CBC facing a serious debt crisis, Ji Hanfei initiative seeking an actual controller ofCBC, by actively participate the shareholders general meeting of CBC, showing major influence on CBC for achieving actuallycontrols of the Company in purpose of resolving the debt crisis.
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment andDevelopment Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12
th, Oct., 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civilruling. In second half year of 2013, on the basis of the investor interest adjustment scheme deliberated and approved by creditor’smeeting and investors’ conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, thereorganization plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest majorityshareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting and investors’ conference, inrespect of the investor interest adjustment scheme, and provided 5.39 million Yuan to CBC for claims settlement and maintain theassets of main business of CBC. Debts of the CBC solved by reorganization, net assets of CBC turns to positive value, the mainbusiness of bicycle maintained and achieved a steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset structure, further tostrengthen the Company and sustainable ability in development. Taking into account the debt problem of CBC has been resolved, theCompany needs supports from all over the shareholders, and based on the actual condition of development of Guosheng Energy andshare-holding ratio, Ji Hanfei and Guosheng Energy decided to change the actually controller state to general investment, that is JiHanfei and Guosheng Energy, will not participate in the operation management plan of CBC in future, and they have no plans toseeking an actual controlling rights of CBC in next 12 months eitherThe Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’ rights as a commoninvestor.Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controllerType of actual controller: Non-existentThe company does not have the actual controller.(i) Facts and reasons for the company's determination of the actual controller's alterationOn February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after JiHanfei made the declaration to abandon the actual control of the Company, the actual controller of the Company changed from JiHanfei to no actual control, the specific facts and reasons are as follows:
1. The voting rights of Ji Hanfei to actually control the shares of the Company
According to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd., Shenzhen Branch and thedocuments publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, Ji Hanfei held 63,508,747 shares of theCompany’s A-Shares through Guosheng Energy, and his spouse, Li Huili, held 3,891,124 shares of the Company’s B-Shares, so JiHanfei totally controlled 67,399,871 shares of the Company’s voting shares, accounting for 12.22% of the total number of shares ofthe Company. Ji Hanfei actually controlled no more than 30.00% of the Company’s voting rights and had no control over theCompany's general meeting of shareholders.
2. Ji Hanfei’s control to the Company's board of directors
According to the Resolution Announcement of the 18
th session of 8
thBoard of Directors and the Resolution Announcement of theFirst Extraordinary General Meeting of 2013 publicly disclosed by the Company and confirmed by the Company and GuoshengEnergy, the directors of the current board of directors of the Company should be nominated by the eighth session of board ofdirectors, Guosheng Energy did not nominate the current board of directors for the Company.Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’s voting shares afterobtaining the control power of Guosheng Energy, and has not actually dominated over half of the members of the board of directorsof the Company.
According to the Resolution Announcement of the 24
th session of the 9
thBoard of Directors announced on April 27, 2017 by theCompany, the ninth session of board of directors of the Company reviewed and passed the following proposals concerning thecandidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors, agreed the current boardof directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo, Mr. Sun Longlong and Mr. Zhong Hua asthe candidates for the directors of the tenth session of board of directors of the company and participate in the election of the generalshareholders’ meeting as the term of office of the director of the 9
thsession of board of directors of the company has expired.
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board of Directors, agreed thecurrent board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. Yang Hao as the candidates for the independentdirectors of the tenth session of board of directors of the company as the term of office of the director of the 9
thsession of board ofdirectors of the company has expired, and submitted the proposal to the Shenzhen Stock Exchange for review, the candidates canonly participate in the election of the general shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24
thsession of 9
thboard of directors of theCompany, the candidates for the tenth session of board of directors should be nominated by the ninth session of board of directors,the Company did not receive the nomination of candidates for the tenth session of board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the director candidatesannounced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang, serving as a supervisor ofGuojun Energy, the above mentioned director candidates had no related relationships with Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioned director candidate toserve as the directors of the tenth session of the board of directors of the Company, Ji Hanfei and Guosheng Energy had not actuallydominated over half of the members of the tenth session of board of directors of the Company.
3. Ji Hanfei’s significant influence on the general meeting of shareholders of the Company
On October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30” to accept theapplication for the reorganization of the Company by Guosheng Energy. On December 27, 2013, Shenzhen Intermediate People'sCourt issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled that the implementation of the Company’s reorganizationplan was completed and the Company’s bankruptcy proceedings ended. According to the explanation of Guosheng Energy and theinspection of bankruptcy and restructuring documents, Guosheng Energy had actively participated in the meeting of creditors for theCompany’s bankruptcy and reorganization and had provided interest-free loan support to the Company during the bankruptcy andreorganization, which had a significant influence on the Company’s general meeting of shareholders.
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained the control power ofGuoji Energy on January 3, 2011, in view of the fact that it was the Company’s largest shareholder and largest creditor and the
Company faced serious debt crisis for a long time, Ji Hanfei actively sought the actual controller status of the Company and exerted asignificant influence on the Company by actively participating in the Company’s general meeting of shareholders so as to realize theactual control of the Company and then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controlling the Company.After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfei did notsubjectively attempt to influence the general meeting of stockholders of the Company by seeking the actual control rights.Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% and he did not nominate more than half ofthe directors of the Company’s board of directors, Ji Hanfei could not effectively control the Company’s general meeting ofshareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24
th
session of 9
thBoard of Directors” announced by the Company onApril 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei and Guosheng Energy didn’t not nominateany candidate for the directors of the tenth session of board of directors to the Company after Ji Hanfei and Guosheng Energy madethe declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled by Ji Hanfei wasrelatively low, which was not sufficient to control the general meeting of shareholders or make a significant impact on the generalmeeting of shareholders, and he had promised to give up the right of control to the company, the Company has no actual controllersince February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have checked this issue andmade clear opinions to support.
Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
□ Yes √ No
Shareholders holding more than 5% of the shares at the ultimate control level of the CompanyChanges of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the periodProperty right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and itspersons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
√ Applicable □ Not applicable
Name of the legal person shareholder | Legal person/person in charge of the unit | Date of foundation | Registered capital | Main business or management activities |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | Ji Hanfei | 2005-04-26 | 91440300774115792T | Industry development, domestic commerce, materials supply and sale (excluding specially run, controlled and sold merchandises) |
6. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,restructuring side and other commitment subjects
□ Applicable √ Not applicable
IV. The specific implementation of shares buy-back during the reporting periodImplementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□ Applicable √ Not applicable
Section X. Financial Report
I. Audit Report
Type of audit opinion | An unqualified audit report with significant uncertainty of going concern |
Signing date of audit report | 2022-04-22 |
Name of audit institute | Baker Tilly China CPA (LLP) |
Document serial of audit report | TZY Zi[2022]No.26082 |
Name of the CPA | Qu Xianfu, Deng Jun |
Audit reportTo Shareholders of Shenzhen China Bicycle Company (Holdings) LimitedI. Auditor’s opinionWe have audited the financial statements of Shareholders of Shenzhen China Bicycle Company (Holdings)Limited (hereinafter the “Shen Zhonghua”), which included the consolidated and parent company’s balance sheetas of 31 December 2021, the consolidated and parent company’s profit statement, the consolidated and parentcompany’s statement of cash flow and the consolidated statement of changes in equity of the Company and parentcompany’s for the year of 2021, together with the relevant annotations thereto.We have the view that the attached financial statements are prepared in accordance with the Accounting Standardsfor Business Enterprises in all material aspects, which reflect fairly the consolidated financial position of theCompany and parent company’s as of 31 December 2021 and the operating results and cash flow of the Companyand parent company’s for the year of 2021.II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant ofthe PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in theaudit report has further clarified our responsibilities under these standards. Pursuant to the code of professionalconduct as certified public accountant in the PRC, we are independent of the Shen Zhonghua and have performedother responsibility as required by our professional ethics. We believe that the audit evidence obtained by us issufficient and adequate, which provides foundation for us to issue audit opinion.III. Significant uncertainties related to going concernWe draw the attention of users of the financial statements that the reorganization plan of Shenzhen China BicycleCompany was completed on December 27, 2013 and the bankruptcy procedure was terminated as stated in itsFinancial Statements Note II, the company set conditions for the introduction of the restructuring party in therestructuring plan, expecting to restore the sustainable operation ability and sustained profitability through asset
restructuring. As of the date of the audit report, the company has not yet introduced a reorganizing party, and onlymaintained the sustainable operation ability of Shenzhen China Bicycle Company by retaining the traditionalbusiness of selling electric bicycles and developing and selling new businesses such as lithium batteries andjewelry gold before the reorganizing party injects assets. Considering that the net profit attributable to the parentcompany in 2021 was -1,986,700 yuan, and the owner’s equity attributable to the parent company as of December31, 2021 was 8,918,500 yuan, which indicated the existence of a material uncertainty that could cause significantdoubt about the sustainable operation ability of Shenzhen China Bicycle Company. Uncertainty. This matter doesnot affect the issued audit opinion.
IV. Key audit itemsKey audit items refer to those which in our opinion based on our professional judgment are the most importantissues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entityand provide no opinions separately for each of them.
Key audit items | Countermeasures |
、Revenue recognition
1、Revenue recognition | |
CBC is mainly engaged in the sales of bicycles, electric bicycles and related materials, jewelry and accessories. In 2021, revenue from main business was 160,519,280.02 yuan, all of which was generated from domestic sales. CBC recognizes the sales revenue when the products are shipped and signed for by the customers. Due to the significant amount of operation revenue, the veracity of the revenue and whether it is included in the proper accounting period has a significant impact on the Company’ results of operation for 2021, and may be subject to the potential misstatement. Accordingly, we have identified the revenue recognition as a key audit matter. Please refer to the accounting policies described in "28. Revenue" in Note "III. Significant Accounting Policies and Accounting Estimates" to the Financial Statements, and "23. Operating Income and Costs" in "Notes to Items in the Consolidated Financial Statements". | The main audit procedures we performed for revenue recognition are as follows: 1. Understand, evaluate and test the effectiveness of the design and operation of internal control related to sales and collection of Shenzhen China Bicycle Company. 2. Check the relevant terms of the customer contract, concern whether the pricing method, acceptance method, delivery place and lead time, settlement method, etc. have changed, and evaluate whether the revenue recognition of Shenzhen China Bicycle Company complies with the provisions of the Accounting Standards for Business Enterprises and whether it is consistent with the disclosed accounting policies . 3. Inquire and understand the background information of major customers through public channels, such as industrial and commercial registration information, to confirm whether there is a potential unidentified related party relationship between the customer and Shenzhen China Bicycle Company and related parties. 4. Check the online sales customer information (such as contact number, contact address, order time, etc.) to evaluate the authenticity and rationality of online sales; check the market prices of main materials, and analyze the rationality of fluctuations in gross profit margins. |
5. Confirm the current transaction amount and payment
balance to major customers, and visit important customersto verify the authenticity of the revenue recognition ofShenzhen China Bicycle Company.
6. Check the main customer contracts, incoming and
outgoing records, delivery notes and delivery receiptrecords, etc.
7. Check the delivery notes within a certain period before
and after the balance sheet date, pay attention to the date ofreceipt, and confirm whether the revenue recognition isincluded in the correct accounting period.
Key audit items
Key audit items | Countermeasures |
2、Impairment of accounts receivable | |
As of December 31, 2021, balance of account receivable under the name of CBC was 54,169,661.20 yuan, balance of bad debt provision was 7,319,577.61 yuan. Due to the significant amount of account receivable and the assessment of the bad debt provision involves significant management judgment. Accordingly, we identified the impairment of account receivable as a key audit matter. Please refer to the accounting policies described in "12. Accounts receivable" in Note "III. Significant Accounting Policies and Accounting Estimates" to the financial statements, and "2. Accounts receivable" in "6. Notes to Items in Consolidated Financial Statements" | Our main audit procedures for the impairment of accounts receivable are as follows: 1. Understand and test the effectiveness of the design and operation of internal control related to accounts receivable management. 2. Review the rationality and consistency of the management’s accounting policies for the provision for bad debts of accounts receivable, and review whether the major standards of single amount determined by the management are reasonable. 3. For accounts receivable with separate provision for bad debts, select samples to obtain the basis for the management to estimate the expected future recoverable amount, including customer credit records, default or delayed payment records and actual repayment after the period, and review its rationality. 4. For the accounts receivable for which the bad debt provision is made according to the aging analysis method, analyze the rationality of the accounting estimate of the bad debt provision for the accounts receivable of Shenzhen China Bicycle Company, and select samples to test the accuracy of the aging. |
V. Other informationThe management of Shen Zhonghua (hereinafter, the Management) is responsible for other information, whichincludes the information covered in the Annual Report of 2021 except for the financial statements and our auditreport.Our audit opinion issued on financial statement does not cover other information, and we would not issue any
form of verification conclusion for those information.To prepare our audit on financial statement, we are required to read other information, and during the procedure,to consider that whether other information differs materially from the financial statement or the informationobtained by us during the audit or whether there exits material error.Based on the works done by us, in case we find any material error in other information, we shall report this fact.In this regard, we have nothing to report.VI. Management’s responsibility for financial statementsThe Management is responsible for preparing financial statements according to the Business AccountingStandards which make fair reflection, and for designing, implementing and maintaining necessary internal controlsystem to make sure that there is no material misstatement in the financial statements due to fraud or mistake.When preparing the financial statements, the management is responsible for assessing the Company’s ability ofcontinuous operation, disclosing the matters relating to continuous operation (if applicable) and applying theassumption of continuous operation, unless the management plans to liquidate the Company, terminate operationor has no other practicable choice.The governance is responsible for monitoring the financial reporting process of the Company.VII. Auditor’s responsibility for audit of the financial statementsOur objectives are to obtain reasonable assurance about whether these financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with auditing standards will always be found in the presence of a material misstatement.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.As part of an audit in accordance with auditing standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thesefinancial statements or, if such disclosures are inadequate, we have to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain adequate and appropriate audit evidence in relation to the financial information of the entities orbusiness transactions of the Company, in order to issue audit opinion on the financial statement. We areresponsible for guiding, supervising and executing the audit for the Group, and we accept full responsibility forthe audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and related safeguards (if applicable).From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.II. Financial statementUnit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
December 31, 2021
Unit: RMB/CNY
Item | December 31, 2021 | December 31, 2020 |
Current assets: | ||
Monetary funds | 33,246,957.92 | 19,887,978.05 |
Settlement provisions | ||
Capital lent | ||
Trading financial assets |
Derivative financial assets | ||
Note receivable | ||
Account receivable | 46,850,083.59 | 55,031,424.70 |
Receivable financing | ||
Accounts paid in advance | 1,300,408.57 | 816,541.52 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 494,695.27 | 576,770.36 |
Including: Interest receivable | ||
Dividend receivable | ||
Buying back the sale of financial assets | ||
Inventories | 8,248,573.77 | 7,729,325.94 |
Contractual assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 1,814,200.53 | 2,715,425.31 |
Total current assets | 91,954,919.65 | 86,757,465.88 |
Non-current assets: | ||
Loans and payments on behalf | ||
Debt investment | ||
Other debt investment | ||
Long-term account receivable | ||
Long-term equity investment | ||
Investment in other equity instrument | ||
Other non-current financial assets | ||
Investment real estate | ||
Fixed assets | 3,439,212.00 | 3,792,133.36 |
Construction in progress | ||
Productive biological asset | ||
Oil and gas asset |
Right-of-use assets | 1,505,258.90 | |
Intangible assets | ||
Expense on Research and Development | ||
Goodwill | ||
Long-term expenses to be apportioned | ||
Deferred income tax asset | 64,046.67 | 793,170.75 |
Other non-current asset | 400,000.00 | 400,000.00 |
Total non-current asset | 5,408,517.57 | 4,985,304.11 |
Total assets | 97,363,437.22 | 91,742,769.99 |
Current liabilities: | ||
Short-term loans | ||
Loan from central bank | ||
Capital borrowed | ||
Trading financial liability | ||
Derivative financial liability | ||
Note payable | ||
Account payable | 8,297,306.34 | 9,606,144.94 |
Accounts received in advance | ||
Contractual liability | 124,328.07 | 15,254,713.38 |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 923,477.10 | 1,459,244.07 |
Taxes payable | 911,506.52 | 722,321.02 |
Other account payable | 61,407,301.04 | 37,882,805.52 |
Including: Interest payable | ||
Dividend payable | ||
Commission charge and commission payable | ||
Reinsurance payable |
Liability held for sale | ||
Non-current liabilities due within one year | 1,456,782.04 | |
Other current liabilities | 11,700.06 | 1,175,251.38 |
Total current liabilities | 73,132,401.17 | 66,100,480.31 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | 228,302.37 | |
Long-term account payable | ||
Long-term wages payable | ||
Accrual liability | ||
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 228,302.37 | |
Total liabilities | 73,360,703.54 | 66,100,480.31 |
Owner’s equity: | ||
Share capital | 551,347,947.00 | 551,347,947.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 627,834,297.85 | 627,834,297.85 |
Less: Inventory shares | ||
Other comprehensive income | ||
Reasonable reserve | ||
Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
Provision of general risk | ||
Retained profit | -1,202,936,933.70 | -1,200,950,240.88 |
Total owner’ s equity attributable to | 8,918,538.16 | 10,905,230.98 |
parent company | ||
Minority interests | 15,084,195.52 | 14,737,058.70 |
Total owner’ s equity | 24,002,733.68 | 25,642,289.68 |
Total liabilities and owner’ s equity | 97,363,437.22 | 91,742,769.99 |
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
Unit: RMB/CNY
Item | December 31, 2021 | December 31, 2020 |
Current assets: | ||
Monetary funds | 7,613,043.60 | 10,097,024.59 |
Trading financial assets | ||
Derivative financial assets | ||
Note receivable | ||
Account receivable | 22,842,513.86 | 24,274,935.96 |
Receivable financing | ||
Accounts paid in advance | 586,425.80 | 800,000.00 |
Other account receivable | 70,451.01 | 115,263.05 |
Including: Interest receivable | ||
Dividend receivable | ||
Inventories | 73,037.28 | 550,421.78 |
Contractual assets | ||
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | 1,814,200.53 | 2,652,771.13 |
Total current assets | 32,999,672.08 | 38,490,416.51 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables |
Long-term equity investments | 19,960,379.73 | 19,960,379.73 |
Investment in other equity instrument | ||
Other non-current financial assets | ||
Investment real estate | ||
Fixed assets | 3,265,329.99 | 3,530,501.40 |
Construction in progress | ||
Productive biological assets | ||
Oil and natural gas assets | ||
Right-of-use assets | 421,613.45 | |
Intangible assets | ||
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | ||
Deferred income tax assets | ||
Other non-current assets | 400,000.00 | 400,000.00 |
Total non-current assets | 24,047,323.17 | 23,890,881.13 |
Total assets | 57,046,995.25 | 62,381,297.64 |
Current liabilities: | ||
Short-term borrowings | ||
Trading financial liability | ||
Derivative financial liability | ||
Notes payable | ||
Account payable | 364,394.75 | 748,604.24 |
Accounts received in advance | ||
Contractual liability | 90,000.44 | 14,685,423.04 |
Wage payable | 561,350.41 | 1,146,371.58 |
Taxes payable | 15,603.18 | 24,906.50 |
Other accounts payable | 52,710,433.54 | 39,409,824.37 |
Including: Interest payable | ||
Dividend payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | 323,646.60 | |
Other current liabilities | 11,700.06 | 1,101,243.63 |
Total current liabilities | 54,077,128.98 | 57,116,373.36 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | 121,974.19 | |
Long-term account payable | ||
Long term employee compensation payable | ||
Accrued liabilities | ||
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 121,974.19 | |
Total liabilities | 54,199,103.17 | 57,116,373.36 |
Owners’ equity: | ||
Share capital | 551,347,947.00 | 551,347,947.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 627,834,297.85 | 627,834,297.85 |
Less: Inventory shares | ||
Other comprehensive income | ||
Special reserve | ||
Surplus reserve | 32,673,227.01 | 32,673,227.01 |
Retained profit | -1,209,007,579.78 | -1,206,590,547.58 |
Total owner’s equity | 2,847,892.08 | 5,264,924.28 |
Total liabilities and owner’s equity | 57,046,995.25 | 62,381,297.64 |
3. Consolidated Profit Statement
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Total operating income | 165,246,577.95 | 117,857,480.17 |
Including: Operating income | 165,246,577.95 | 117,857,480.17 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 164,230,093.26 | 113,179,555.62 |
Including: Operating cost | 152,606,986.59 | 103,221,623.73 |
Interest expense | ||
Commission charge and commission expense | ||
Cash surrender value | ||
Net amount of expense of compensation | ||
Net amount of withdrawal of insurance contract reserve | ||
Bonus expense of guarantee slip | ||
Reinsurance expense | ||
Tax and extras | 116,707.39 | 108,070.23 |
Sales expense | 3,303,956.30 | 2,540,657.03 |
Administrative expense | 6,154,605.29 | 4,783,608.32 |
R&D expense | 2,037,197.58 | 2,506,877.57 |
Financial expense | 10,640.11 | 18,718.74 |
Including: Interest expenses | ||
Interest income | 127,249.64 | 89,977.25 |
Add: Other income | 400,392.20 | 10,207.52 |
Investment income (Loss is listed with “-”) | ||
Including: Investment income on affiliated company and joint venture | ||
The termination of income recognition for financial assets measured by amortized cost | ||
Exchange income (Loss is listed with “-”) |
Net exposure hedging income (Loss is listed with “-”) | ||
Income from change of fair value (Loss is listed with “-”) | ||
Loss of credit impairment (Loss is listed with “-”) | -2,398,980.61 | -603,180.13 |
Losses of devaluation of asset (Loss is listed with “-”) | -99,941.65 | -198,181.03 |
Income from assets disposal (Loss is listed with “-”) | 24,936.44 | |
III. Operating profit (Loss is listed with “-”) | -1,082,045.37 | 3,911,707.35 |
Add: Non-operating income | 5,680,409.27 | 6,542,649.75 |
Less: Non-operating expense | 5,303,959.22 | 5,688,279.29 |
IV. Total profit (Loss is listed with “-”) | -705,595.32 | 4,766,077.81 |
Less: Income tax expense | 933,960.68 | 390,371.22 |
V. Net profit (Net loss is listed with “-”) | -1,639,556.00 | 4,375,706.59 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with ‘-”) | -1,639,556.00 | 4,375,706.59 |
2.termination of net profit (net loss listed with ‘-”) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner’s of parent company | -1,986,692.82 | 3,785,834.68 |
2.Minority shareholders’ gains and losses | 347,136.82 | 589,871.91 |
VI. Net after-tax of other comprehensive income | ||
Net after-tax of other comprehensive income attributable to owners of parent company | ||
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive |
income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income | ||
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
Net after-tax of other comprehensive income attributable to minority shareholders | ||
VII. Total comprehensive income | -1,639,556.00 | 4,375,706.59 |
Total comprehensive income attributable to owners of parent Company | -1,986,692.82 | 3,785,834.68 |
Total comprehensive income attributable to minority shareholders | 347,136.82 | 589,871.91 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | -0.0036 | 0.0069 |
(ii) Diluted earnings per share | -0.0036 | 0.0069 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last period.
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Operating income | 28,199,223.50 | 28,879,097.16 |
Less: Operating cost | 24,333,256.69 | 21,700,690.24 |
Taxes and surcharge | 18,043.30 | 15,043.36 |
Sales expenses | 688,541.79 | 707,225.99 |
Administration expenses | 1,765,358.61 | 2,851,678.89 |
R&D expenses | 2,037,197.58 | 1,118,618.85 |
Financial expenses | -56,830.88 | -60,879.85 |
Including: Interest expenses | ||
Interest income | 97,007.00 | 69,527.04 |
Add: Other income | 392,001.91 | 8,595.12 |
Investment income (Loss is listed with “-”) | ||
Including: Investment income on affiliated Company and joint venture | ||
The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
Net exposure hedging income (Loss is listed with “-”) | ||
Changing income of fair value (Loss is listed with “-”) | ||
Loss of credit impairment (Loss is listed with “-”) | -2,700,794.63 | -130,767.69 |
Losses of devaluation of asset (Loss is listed with “-”) | 72,937.26 | -118,780.98 |
Income on disposal of assets | 24,936.44 |
(Loss is listed with “-”) | ||
II. Operating profit (Loss is listed with “-”) | -2,822,199.05 | 2,330,702.57 |
Add: Non-operating income | 5,587,466.85 | 5,975,186.69 |
Less: Non-operating expense | 5,182,300.00 | 5,438,228.77 |
III. Total Profit (Loss is listed with “-”) | -2,417,032.20 | 2,867,660.49 |
Less: Income tax | ||
IV. Net profit (Net loss is listed with “-”) | -2,417,032.20 | 2,867,660.49 |
(i) continuous operating net profit (net loss listed with ‘-”) | -2,417,032.20 | 2,867,660.49 |
(ii) termination of net profit (net loss listed with ‘-”) | ||
V. Net after-tax of other comprehensive income | ||
(i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income |
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
VI. Total comprehensive income | -2,417,032.20 | 2,867,660.49 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 187,241,639.89 | 93,023,981.38 |
Net increase of customer deposit and interbank deposit | ||
Net increase of loan from central bank | ||
Net increase of capital borrowed from other financial institution | ||
Cash received from original insurance contract fee | ||
Net cash received from reinsurance business | ||
Net increase of insured savings and investment | ||
Cash received from interest, commission charge and commission | ||
Net increase of capital borrowed | ||
Net increase of returned business |
capital | ||
Net cash received by agents in sale and purchase of securities | ||
Write-back of tax received | 51,574.09 | 78,290.48 |
Other cash received concerning operating activities | 20,966,639.22 | 28,524,286.42 |
Subtotal of cash inflow arising from operating activities | 208,259,853.20 | 121,626,558.28 |
Cash paid for purchasing commodities and receiving labor service | 169,402,197.88 | 96,741,787.34 |
Net increase of customer loans and advances | ||
Net increase of deposits in central bank and interbank | ||
Cash paid for original insurance contract compensation | ||
Net increase of capital lent | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 8,534,075.79 | 5,937,846.01 |
Taxes paid | 816,292.62 | 551,358.27 |
Other cash paid concerning operating activities | 13,833,354.04 | 14,453,337.70 |
Subtotal of cash outflow arising from operating activities | 192,585,920.33 | 117,684,329.32 |
Net cash flows arising from operating activities | 15,673,932.87 | 3,942,228.96 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | ||
Cash received from investment income | ||
Net cash received from disposal of fixed, intangible and other long-term | 64,500.00 |
assets | ||
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 64,500.00 | |
Cash paid for purchasing fixed, intangible and other long-term assets | 18,890.56 | 18,118.82 |
Cash paid for investment | ||
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 18,890.56 | 18,118.82 |
Net cash flows arising from investing activities | -18,890.56 | 46,381.18 |
III. Cash flows arising from financing activities: | ||
Cash received from absorbing investment | 9,825,000.00 | |
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 9.225,000.00 | |
Cash received from loans | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 9,825,000.00 | |
Cash paid for settling debts | ||
Cash paid for dividend and profit distributing or interest paying | ||
Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
Other cash paid concerning | 2,296,062.44 |
financing activities | ||
Subtotal of cash outflow from financing activities | 2,296,062.44 | |
Net cash flows arising from financing activities | -2,296,062.44 | 9,825,000.00 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | 13,358,979.87 | 13,813,610.14 |
Add: Balance of cash and cash equivalents at the period -begin | 19,887,978.05 | 6,074,367.91 |
VI. Balance of cash and cash equivalents at the period -end | 33,246,957.92 | 19,887,978.05 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 25,119,322.27 | 17,674,623.95 |
Write-back of tax received | 0.00 | 4,239.24 |
Other cash received concerning operating activities | 22,351,912.54 | 33,840,545.52 |
Subtotal of cash inflow arising from operating activities | 47,471,234.81 | 51,519,408.71 |
Cash paid for purchasing commodities and receiving labor service | 21,110,201.92 | 9,546,863.96 |
Cash paid to/for staff and workers | 5,707,424.68 | 4,522,703.61 |
Taxes paid | 175,913.72 | 296,782.94 |
Other cash paid concerning operating activities | 21,881,881.87 | 13,337,219.71 |
Subtotal of cash outflow arising from operating activities | 48,875,422.19 | 27,703,570.22 |
Net cash flows arising from operating | -1,404,187.38 | 23,815,838.49 |
activities | ||
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | ||
Cash received from investment income | ||
Net cash received from disposal of fixed, intangible and other long-term assets | 64,500.00 | |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 64,500.00 | |
Cash paid for purchasing fixed, intangible and other long-term assets | 5,272.56 | 18,118.82 |
Cash paid for investment | 15,725,000.00 | |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 5,272.56 | 15,743,118.82 |
Net cash flows arising from investing activities | -5,272.56 | -15,678,618.82 |
III. Cash flows arising from financing activities: | ||
Cash received from absorbing investment | ||
Cash received from loans | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | ||
Cash paid for settling debts | ||
Cash paid for dividend and profit |
distributing or interest paying | ||
Other cash paid concerning financing activities | 1,074,521.05 | |
Subtotal of cash outflow from financing activities | 1,074,521.05 | |
Net cash flows arising from financing activities | -1,074,521.05 | |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | -2,483,980.99 | 8,137,219.67 |
Add: Balance of cash and cash equivalents at the period -begin | 10,097,024.59 | 1,959,804.92 |
VI. Balance of cash and cash equivalents at the period -end | 7,613,043.60 | 10,097,024.59 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
Item | 2021 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 | ||||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the |
last period | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 | ||||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | -1,986,692.82 | -1,986,692.82 | 347,136.82 | -1,639,556.00 | |||||||||||
(i) Total comprehensive income | -1,986,692.82 | -1,986,692.82 | 347,136.82 | -1,639,556.00 | |||||||||||
(ii) Owners’ devoted and decreased capital | |||||||||||||||
1.Common shares invested by shareholders | |||||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
4. Other | |||||||||||||||
(iii) Profit distribution | |||||||||||||||
1. Withdrawal of surplus reserves |
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||||
4. Other | |||||||||||||||
(iv) Carrying forward internal owners’ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(v) Reasonable reserve | |||||||||||||||
1. Withdrawal in the report period |
2. Usage in the report period | |||||||||||||||
(vi) Others | |||||||||||||||
IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,936,933.70 | 8,918,538.16 | 15,084,195.52 | 24,002,733.68 |
Amount of the previous period
Unit: RMB/CNY
Item | 2020 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,736,075.56 | 7,119,396.30 | 4,322,186.79 | 11,441,583.09 | ||||||||
III. Increase/ Decrease in the period | 3,785,834.68 | 3,785,834.68 | 10,414,871.91 | 14,200,706.59 |
(Decrease is listed with “-”) | |||||||||||||||
(i) Total comprehensive income | 3,785,834.68 | 3,785,834.68 | 589,871.91 | 4,375,706.59 | |||||||||||
(ii) Owners’ devoted and decreased capital | 9,825,000.00 | 9,825,000.00 | |||||||||||||
1.Common shares invested by shareholders | 9,825,000.00 | 9,825,000.00 | |||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
4. Other | |||||||||||||||
(iii) Profit distribution | |||||||||||||||
1. Withdrawal of surplus reserves | |||||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||||
4. Other | |||||||||||||||
(iv) Carrying forward internal owners’ equity |
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(v) Reasonable reserve | |||||||||||||||
1. Withdrawal in the report period | |||||||||||||||
2. Usage in the report period | |||||||||||||||
(vi) Others | |||||||||||||||
IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,200,950,240.88 | 10,905,230.98 | 14,737,058.70 | 25,642,289.68 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
Item | 2021 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 | |||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 | |||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | -2,417,032.20 | -2,417,032.20 | ||||||||||
(i) Total comprehensive income | -2,417,032.20 | -2,417,032.20 | ||||||||||
(ii) Owners’ devoted and decreased capital | ||||||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into |
owners equity with share-based payment | ||||||||||||
4. Other | ||||||||||||
(iii) Profit distribution | ||||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | ||||||||||||
3. Other | ||||||||||||
(iv) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve | ||||||||||||
4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
5. Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(v) Reasonable reserve |
1. Withdrawal in the report period | ||||||||||||
2. Usage in the report period | ||||||||||||
(vi) Others | ||||||||||||
IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,007,579.78 | 2,847,892.08 |
Amount of the previous period
Unit: RMB/CNY
Item | 2020 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. The ending balance of the previous year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,458,208.07 | 2,397,263.79 | |||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. The beginning balance of the current year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,209,458,208.07 | 2,397,263.79 | |||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | 2,867,660.49 | 2,867,660.49 | ||||||||||
(i) Total comprehensive income | 2,867,660.49 | 2,867,660.49 |
(ii) Owners’ devoted and decreased capital | ||||||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | ||||||||||||
4. Other | ||||||||||||
(iii) Profit distribution | ||||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | ||||||||||||
3. Other | ||||||||||||
(iv) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) |
3. Remedying loss with surplus reserve | ||||||||||||
4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
5. Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(v) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | ||||||||||||
2. Usage in the report period | ||||||||||||
(vi) Others | ||||||||||||
IV. Balance at the end of the period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,206,590,547.58 | 5,264,924.28 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) wasreincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the ApprovalDocument SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank ofChina, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as551,347,947.00 Yuan.Legal representative: Li HaiLocation: No. 3008, Buxin Road, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industryMain business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,motorcycles, electric tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment,mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment (lithiumbatteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale, retail, importand export and related supporting business of above-mentioned products (excluding commodities subject to statetrade management, handling the application according to the relevant national regulations for commoditiesinvolving quotas, license management and other special provisions and management,); fine chemical products(excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology development ofcomputer software, transfer of self-developed technological achievements, and providing relevant technicalinformation consultation; own property leasing; property management. (The above projects do not involve specialadministrative measures for the implementation access of national regulations, and those involving restrictedprojects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documentsbefore operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silverjewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious metal materials,diamonds, jadeite, crafts (except ivory and its products), calligraphy and painting, collection (except for antiques,cultural relics, and items prohibited by national laws and administrative regulations).Main products or services currently offered are: EMMELLE bicycles, electrical bicycles, lithium battery materialand gold jewelry.
3. Release of the financial report
The Financial Report was approved at the 37
th Session of 10
th
BOD of the Company on April 22, 2022.The Company has two subsidiaries and one sub-subsdiary included in the scope of consolidated financialstatement, refer to the Note VIII. Change of Consolidate Scope and Note IX. Equity in other entity.IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actualoccurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng EnergyInvestment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming theCompany as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the sameday, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under thesupervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of theCompany. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) ShenZhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan.As of the date of the audit report, the company has not yet introduced a reorganizing party, and only maintainedthe sustainable operation ability of Shenzhen China Bicycle Company by retaining the traditional business ofselling electric bicycles and developing and selling new businesses such as lithium batteries and jewelry goldbefore the reorganizing party injects assets. Considering that the net profit attributable to the parent company in2021 was -3,893,300 yuan, and the owner’s equity attributable to the parent company as of December 31, 2021was 7,011,900 yuan, which indicated the existence of a material uncertainty that could cause significant doubtabout the sustainable operation ability of CBC.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
1. Declaration on compliance with accounting standards for business enterpriseThe financial statement prepared by the Company, based on follow compilation basis, is comply with therequirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the samecontrol
(1) Accounting treatment for business combinations under the same control and those not under the same controlFor a business merger that is under the same control and is achieved by the Company through one singletransaction or multiple transactions, assets and liabilities obtained from that business combination shall bemeasured at their book value at the combination date as recorded by the party being absorbed in the consolidatedfinancial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference betweenthe book value of obtained net assets and the book value of paid consolidated consideration (or the nominal valueof the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient foroffset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps,the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before theacquisition date accounted according to the equity method, re-measurement is carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included inthe current investment income. If the acquiree’s stock equities held before the acquisition date involves changes ofother comprehensive incomes and other owner's equities under accounting with the equity method, the balancebetween the fair value and the book value is included in the current investment income on the acquisition date,excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assetsof the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-termequity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if theformer is less than the latter, the balance is included in the current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
(1)In determining whether to account for the multiple transactions as a single transactionA parent shall consider all the terms and conditions of the transactions and their economic effects. One or more ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified whenconsidered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf each of the multiple transactions forms part of a bundled transactions which eventually results in loss of controlthe subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated
financial statements, the difference between the consideration received and the corresponding percentage of thesubsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensiveincome and transferred to the profit or loss when the parent eventually loses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements atthe date when control is lost. The difference between the total amount of consideration received from thetransaction that resulted in the loss of control and the fair value of the remaining equity investment and the shareof net assets of the former subsidiary calculated continuously from the acquisition date or combination date basedon the previous shareholding proportion, shall be recognized as investment income for the current period whencontrol is lost. The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current period when control islost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions whicheventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration receivedand the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equitypremium) in the consolidated financial statements.If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investment income for thecurrent period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard forBusiness Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany and its subsidiaries and other related information.When consolidating the financial statements, the following items are eliminated: internal equity investment andowners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internaltransactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carryout accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.Joint venture participants should carry out accounting settlement for investments of the joint venture according toprovisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalentsrefer to the short-term (generally due within three months since the date of purchase) highly liquid investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheetdate; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spotexchange rate on the transaction date; the income and expenditure items in the profit statement shall be convertedat the spot exchange rate on the transaction date. The translation difference of foreign financial statementsconducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractualprovisions of the instrument.When buying and selling financial assets in a conventional manner, recognize and derecognize them according tothe accounting of the trading day. Buying and selling financial assets in a conventional manner refers to thecollection or delivery of financial assets in accordance with the contract terms and within the period prescribed byregulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sellfinancial assets.When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of agroup of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amountof cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtuallytransferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neithertransferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control of
the financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assetsmeasured at fair value and whose changes are included in other comprehensive income, and financial assetsmeasured at fair value and whose changes are included in the current profit and loss according to the Company’sbusiness model for managing financial assets and the contractual cash flow characteristics of financial assets atinitial recognition. The subsequent measurement of financial assets depends on their classification.The Company’s classification of financial assets is based on the Company’s business model for managingfinancial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured atamortized cost: the Company’s business model for managing this financial asset is to collect contractual cashflows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of principal and interest based on the outstanding principal amount. For such financial assets, the actualinterest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arisingfrom amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensiveincomeFinancial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount. For such financial assets, fair value is used forsubsequent measurement. The discount or premium is amortized by using the actual interest method and isrecognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreigncurrency monetary financial assets are recognized as current gains and losses, changes in the fair value of suchfinancial assets are recognized as other comprehensive income, until the financial asset is derecognized, itscumulative gains or losses are transferred to the current profit and loss. Interest income related to such financialassets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensiveincomeThe Company irrevocably chooses to designate some non-trading equity instrument investments as financialassets measured at fair value and whose changes are included in other comprehensive income. Only relevantdividend income is included in the current profit and loss, and changes in fair value are recognized as othercomprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred toretained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and loss
Financial assets except for above financial assets measured at amortized cost and financial assets measured at fairvalue and whose changes are included in other comprehensive income are classified as financial assets measuredat fair value and whose changes are included in the current profit and loss. During initial recognition, in order toeliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assetsmeasured at fair value and whose changes included in the current profit and loss. For such financial assets, fairvalue is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.When and only when the Company changes its business model for managing financial assets, it will reclassify allaffected related financial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss, the relatedtransaction costs are directly included in the current profit and loss, and the related transaction costs of other typesof financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financialliabilities measured at fair value and whose changes are included in the current profit and loss at initialrecognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit or loss during initial measurement: (1) Thisdesignation can eliminate or significantly reduce accounting mismatches; (2) According to the group riskmanagement or investment strategies stated in official written documents, management and performanceevaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted basedon fair value, and are reported to key management personnel within the group on this basis; (3) The financialliability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities thatare measured at fair value and whose changes are included in the current profit or loss, the related transactioncosts are directly included in the current profit and loss, and the related transaction costs of other financialliabilities are included in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based onamortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities that are measured at fair value and whose changes are included in the current profit or lossinclude trading financial liabilities (including derivatives that are financial liabilities) and financial liabilitiesdesignated to be measured at fair value at the initial recognition and whose changes are included in the currentprofit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in thebalance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legalright is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation ofthe financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured atamortized cost, debt instrument investments measured at fair value and whose changes are included in othercomprehensive income and financial guarantee contracts. Credit loss refers to the difference between allcontractual cash flows receivable under the contract and discounted according to original actual interest rate bythe Company and all expected receivable cash flows, that is, the present value of all cash shortages.The Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measuredat fair value and whose changes are included in other comprehensive income (debt instruments) in a single orcombined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financialinstrument for the entire duration; if the credit risk of the financial instrument has not significantly increased sincethe initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to theexpected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amountof the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’sspecific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.Generally, the Company believes that the credit risk of the financial instrument has significantly increased when itexceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrumenthas not increased significantly since initial recognition.Specifically, the Company divides the process of credit impairment of financial instruments of which no creditimpairment has occurred at the time of purchase or origin into three stages. There are different accountingtreatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, thesame below).Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurredFor a financial instrument at this stage, the enterprise should measure the loss provisions according to theexpected credit loss of the instrument for its entire duration, and calculate the interest income based on its bookbalance and actual interest rate.
Stage three: Credit impairment occurs after initial recognitionFor a financial instrument at this stage, the enterprise should measure the loss provisions based on the expectedcredit losses of the instrument for its entire duration, but the calculation of interest income is different from thefinancial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterpriseshould calculate interest income based on its amortized cost (book balance minus the provisions for impairment,i.e., book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise shouldonly recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet datewith its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrumenthas not increased significantly since the initial recognition.If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability tofulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economicsituation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s abilityto fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower creditrisk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration.The Company makes accounting policy choices for the receivables containing significant financing componentsand the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, andchooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions inaccordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to thetransferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in theownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, itshall be accounted for as follows: the financial asset should be terminated if the Group waives control over theasset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset
and recognizes an associated liability if the Group does not waives control over the asset.If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue tobe involved shall be recognized according to the lower of the book value of the financial assets and the amount offinancial guarantee. The financial guarantee amount means the maximum amount of consideration received whichwill be required to be repaid.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”Nil
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptancebills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank paysthe determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue creditloss is low and has not increased significantly since the initial confirmation, the Company believes that the risk ofoverdue default is 0; for commercial acceptance bills, the Company believes that the probability of default isrelated to the aging, we use a simplified model of expected credit losses, that is the allowance for losses is alwaysmeasured at the amount of expected credit losses over the entire duration period. Proportion for accrual foundmore in the 12. accounting policy and estimate for account receivable in V.
12. Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financingcomponents (including the case that the financing components in contracts that do not exceed one year are notconsidered according to the standards), that is, always measures their loss provisions according to the amount ofexpected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provisionis included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use the
simplified model of expected credit losses, that is, to always measure its loss provisions according to the amountof expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount ofexpected credit losses during the entire durationThe Company considers all reasonable and well-founded information, including estimates of expected creditlosses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single significant amount | Withdrawal method for bad debt provision of account receivable with single significant amount |
Receivable commercial acceptance bill, account receivable and other receivables with single amount more than 5 million yuan (including) | Carry out impairment test separately, and withdraw bad debt provision according to the difference between the present value of future cash flow and its book value |
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis | |
Age analysis | On the basis of the actual loss rate of the portfolio of receivables with similar credit risk characteristics which are the same or similar in the previous year, for the single amount of non-material receivables, it is divided into several portfolios according to the credit risk characteristics together with the receivables without impairment after the separate test |
Other
Other | Bank acceptance |
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
Account age | Accrual proportion of commercial acceptance bill receivable | Withdrawing proportion of the account receivable | Withdrawing proportion of other receivable |
Within one year(one year included) | 0.3% | 0.3% | 0.3% |
1~2 years (2-year included)
1~2 years (2-year included) | 100% | 0.3% | 0.3% |
2~3 years (3-year included) | 100% | 0.3% | 0.3% |
Over 3 years | 100% | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off | Write off |
(3) Account receivable with significant single amount and single provision for bad debts
Basis or amount of judgment for account with single minor amount | Withdrawal method for bad debt provision of account receivable with single minor amount |
Receivable commercial acceptance bill, account receivable and
Receivable commercial acceptance bill, account receivable and | Carry out impairment test separately, and withdraw bad debt |
other receivables with single amount less than 5 million yuan (including), and the probability of recall is small by nature | provision according to the difference between the present value of future cash flow and its book value |
2. A general model of expected credit loss
Found more in the treatment in【Note V-10. Financial assets】
13. Receivable financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured atfair value and whose changes are included in other comprehensive income: the Company’s business model formanaging this financial asset is to both collect contractual cash flows and sell the financial assets; the contractterms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment ofprincipal and interest based on the outstanding principal amount.The Company transfers the receivables held by discounting or endorsement, and such operations are morefrequent with large amount involved. The management business models is essentially both the collection ofcontractual cash flows and the sales; in accordance with the relevant provision of financial instrument standards,classified them into the financial assets measured at fair value and with its variation reckoned into othercomprehensive income.
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision:
Account with single significant amount: the single receivable has over 5 million yuan at end of the periodAt the end of the period, the receivables with significant single amount are tested separately for impairment. Ifthere is objective evidence that they have been impaired, the impairment loss will be recognized and the provisionfor bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into severalcombinations together with the receivables without impairment after independent test according to the account ageas the credit risk feature. The impairment loss is calculated and determined according to a certain proportion ofthe ending balance of these receivables combinations (impairment test can be conducted separately), and the baddebt provision is withdrawn.In addition to the receivables for which impairment provision has been separately made, the company determines
the following proportion of provision for bad debts based on the actual loss rate of the combination of receivableswith account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,in combination with the current situation:
(2) Age analysis
Account age | Accrual proportion of account receivable | Accrual proportion of other account receivable |
Within one year(one year included)
Within one year(one year included) | 0.3% | 0.3% |
1~2 years (2-year included) | 0.3% | 0.3% |
2~3 years (3-year included)
2~3 years (3-year included) | 0.3% | 0.3% |
Over 3 years | 100% | 100% |
Including: determined to be un-collectible | Write off | Write off |
Note: no provision is made for bad debt for inter-company receivables and other receivables with the scope of consolidation.
(3) Account receivable with minor single amount but single provision for bad debtsReasons for provision of bad debt reserve on single base: The Company conducts impairment test separately forreceivables that are not significant in single amount but have the following characteristics, if there is objectiveevidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts willbe made based on the balance between the present value of future cash flows and its book value; receivables thatare in dispute with the other party or involving litigation or arbitration; there are clear signs indicating that thedebtor is likely to be unable to fulfill the repayment obligations of the receivables.Provision method of bad debt reserve: If the impairment test is carried out separately and there is objectiveevidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will bemade based on the balance between the present value of future cash flows and its book value.
15. Inventory
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goodson hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costsand other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, inventory merchandize and materials for sale) that can be solddirectly is determined using the estimated saleable price of such inventory deducted by the cost of sales andrelevant taxation over the course of ordinary production and operation. The net realizable value of material ininventory that requires processing is determined using the estimated saleable price of the finished productdeducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinaryproduction and operation. The net realizable value of inventory held for performance of sales contract or laborservice contract is determined based on the contractual price; in case the amount of inventory held exceeds thecontractual amount, the net realizable value of the excess portion of inventory is calculated using the normalsaleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contract assets
1. Confirmation method and standard of contract assets
The Company lists contractual assets or contractual liabilities in the balance sheet based on the relationshipbetween performance obligations and customer payments. The Company's right to receive consideration forgoods or services transferred to the customer (And that right depends on factors other than the passage of time) islisted as contractual assets. Contractual assets and contractual liabilities under the same contract are listed as a netamount. The Company's right to receive consideration from customers unconditionally (only depends on thepassage of time) is listed separately as a receivable.
2. Determination and accounting treatment of the expected credit loss for contract assetsDetermination and accounting treatment of the expected credit loss for contract assets found more in Note V-“10.Financial assets”
Nil
17.Contract cost
Nil
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria asheld-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals ofsuch assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a planfor disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a bindingpurchase agreement entered into by the Company and other parties, which contains transaction price, time andadequately strict punishments for breach of contract provisions, which renders the possibility of materialadjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completedwithin a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained asrequired by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value lessselling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case thatthe original value is higher than the adjusted expected net residual value, the difference shall be recorded in profitor loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in theassets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held forsale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assetsrecognized in the disposal group held for sale will increase the book value in proportion of the book value of eachnon-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement ofthe parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidationconsideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initialinvestment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.As for business combination under the common control realized by the Company through several transactions, theinitial investment cost of the investment shall be determined based on the share of the carrying value of theowners’ equity of the consolidated party as calculated according to the shareholding proportion on theconsolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-terminvestment is accounted for using the cost method in the Company’s financial statements. The equity method isadopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the priceactually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fairvalue in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss andadjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating theportion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of netlosses of the investee is recognized to the extent the carrying amount of the investment together with anylong-term interests that in substance form part of its net investment in the investee is reduced to zero, except thatthe Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-termequity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includesthe corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from itsinvolvement with the investee, and the ability to use its power over the investee to affect the amount of theinvestor’s returns. Significant influence is the power to participate in the financial and operating policy decisionsof the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the differencebetween disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long terminvest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and jointventures is impaired, provision of impairment shall be made against the difference between the carrying amountand the recoverable amount of the investment.
23. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held fortransfer upon appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an investment propertyexperiences impairment, the relevant impairment provision shall be provided for based on the difference betweenthe carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and witha service life in excess of one financial year. Fixed assets are recorded at the actual cost at the time of acquisition,
and depreciation is calculated and withdrawn using the average life method from the month after they reach theintended usable state
(2) Depreciation methods
Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
Housing buildings | Straight-line depreciation | 20 years | 10% | 4.5% |
Machinery equipment | Straight-line depreciation | 10 years | 10% | 9% |
Means of transportation | Straight-line depreciation | 5 years | 10% | 18% |
Electronic equipment and others | Straight-line depreciation | 5 years | 10% | 18% |
Nil
(3) Recognition basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied: (1) theownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchasethe leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lesseewill take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the presentvalue of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% orhigher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assetsare of such a specialized nature that only the lessee can use them without major modifications.Fixed assets rented-in under finance lease are recorded at the lower of fair value and the present value of theminimum lease payment at the inception of the lease, and are depreciated following the depreciation policy forself-owned fixed assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assetsas per the actual construction cost. If the construction in progress has reached the intended condition for use butcompletion accounting is not carried out, the construction in progress should be first treated as fixed assets as perthe estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carrying
value and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
On the commencement date of the lease term, the Group recognizes right-of-use assets and lease liabilities forleases, except for short-term leases and leases of low-value assets that are simplified by the standard.The Group initially measures right-of-use assets at cost. This cost includes:
1. The initial measurement amount of the lease liability;
2. The lease payment amount paid on or before the commencement date of the lease term, if there is a leaseincentive, deduct the relevant amount of the lease incentive already enjoyed;
3. Initial direct costs incurred;
4. The expected cost of demolishing and removing the leased asset, restoring the site where the leased asset islocated or restoring the leased asset to the condition as agreed in the lease terms. If the aforementioned cost isincurred for the production of inventories, and the Accounting Standards for Business Enterprises No. 1 -Inventories shall apply.The Group recognizes and measures the cost mentioned in Item 4 above in accordance with Accounting Standardsfor Business Enterprises No. 13 - Contingencies.Initial direct costs are the incremental cost incurred to achieve the lease. Incremental cost is the cost that wouldnot have incurred if the enterprise had not acquired the lease.With reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 -Fixed Assets, the Group accrues depreciation for right-of-use assets. Where it can be reasonably determined thatthe ownership of the leased asset will be obtained at the expiration of the lease term, depreciation shall be accruedwithin the remaining service life of the leased asset. Where it cannot be reasonably determined that the ownership
of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the theshorter of the lease term and the remaining service life of the leased asset.In accordance with the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, the Groupdetermines whether the right-of-use asset is impaired, and performs accounting treatment on the identifiedimpairment losses.
30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initiallymeasured at cost.
2.Intangible assets with limited service life should be amortized systematically and reasonably in their servicelives as per the expected form of realization economic benefits relating to the said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3.At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time ofoccurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at sametime: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there isintention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,including there is evidence that the products produced using the intangible asset has a market or the intangibleasset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for theintangible asset; ④there is sufficient support in terms of technology, financial resources and other resources inorder to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during thebenefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit thesubsequent accounting periods, the outstanding value of the item to be amortized shall be included in currentprofit or loss in full.
33. Contract liability
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The Company's obligations to transfer goods or provide servicesto customers for which consideration has been received or receivable are listed as contract liabilities. Contractassets and contract liabilities under the same contract are listed as a net amount.
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensationoccurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. Thenon-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The Company terminates the labor relationship with an employee before the employee labor contract expires, orproposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When theCompany cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal norconfirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,the liabilities arising from the compensation for the termination of the labor relationship with the employees arerecognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized andimplemented by the local labor and social security department. The Company pays the endowment insurancepremium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio ofthe local basic social endowment insurance payment. After the retirement of employees, the local labor and socialsecurity department has the responsibility to pay the social basic pension to the retired employees. During theaccounting period in which employees provide services, the Company recognizes the amount payable calculatedaccording to the above social security insurance regulations as the liabilities and includes them in the currentprofit and loss or related asset costs.
35.Lease liabilities
Nil
36. Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to therecent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair valueof another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,
on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserveaccordingly. For equity-settled share-based payment made in return for the rendering of employee services thatcannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service isacquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for renderof service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settledshare-based payment made in return for the rendering of employee services that cannot be exercised until theservices are fully provided during vesting period or specified performance targets are met, on each balance sheetdate within the vesting period, the services acquired in the current period shall, based on the best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shallrecognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. Ifthe revision results in an increase in the number of equity instruments granted, the Company will recognize theincrease in the services rendered accordingly at the fair value of the increased number of equity instruments. If theCompany revises the vesting conditions on terms favorable to the employees, the Company will take intoconsideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the Company will account for such decrease by reducingpart of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms notfavorable to the employees, the Company will not take into consideration of the revised vesting conditions whendealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vestingperiod (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
38. Other financial instruments including senior shares and perpetual bondsNil
39. Revenue
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time.When meeting one of the following conditions, it belongs to the performance obligation within a certain period oftime, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains andconsumes the economic benefits brought by the company's performance at the same time as the companyperforms the contract; 2) The customer can control the goods or services under construction during the company'sperformance; 3) The goods or services produced during the company's performance have irreplaceable uses, andthe company has the right to collect payments for the accumulated performance part of the contract during theentire contract period .For performance obligations performed within a certain period of time, the company recognizes revenue inaccordance with the performance progress during that period of time. When the performance progress cannot bereasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonably determined. Forperformance obligations performed at a certain point in time, revenue is recognized at the point when thecustomer obtains control of the relevant goods or services. When judging whether the customer has obtainedcontrol of the goods, the company considers the following signs: 1) The company has the current right to receivepayment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company hastransferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of thegoods; 3) The company has transferred the product to the customer in kind, that is, the customer has physicallytaken possession of the product; 4) The company has transferred the major risks and rewards of the ownership ofthe goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of thegoods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control of
the goods.
(2) Principles of income measurement
1) The company measures income based on the transaction price allocated to each individual performanceobligation. The transaction price is the amount of consideration that the company expects to be entitled to receivedue to the transfer of goods or services to the customer, and does not include the amount collected on behalf of athird party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variableconsideration based on the expected value or the amount most likely to incur, but the transaction price includingthe variable consideration shall not exceed the amount at which the accumulatively recognized income is mostlikely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price basedon the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period. On the starting date of the contract, if the company expects that the interval betweenthe customer's acquisition of control of the goods or services and the customer's payment of the price will notexceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction pricesto each individual performance obligation in accordance with the relative proportion of the stand-alone sellingprice of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's productsales, the company formulates a specific revenue recognition method that the products sold by the company tocustomers are recognized as revenue after the products are delivered to the customer and the customer carries outacceptance and inspection.
40. Government subsidy
(1) government subsidy including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, andmeasured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.
(3) Aggregate method for government subsidy:
1)government subsidy relating to assets are recognized as deferred income, which shall be recorded in profit orloss by installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributed
shall be transferred to profit or loss for the period in which the assets are disposed.
2)If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which therelevant costs are recognized. If government subsidy relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government subsidy
1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;
2) If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequentperiods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offsetagainst the relevant costs. If government subsidy relating to income are used to compensate for the relevant costsor loss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government subsidy received.
(6)As for the government subsidy comprising both portions relating to assets and income, separate accountingshall be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded asrelated to income in general.
(7)The Company realizes government subsidy relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank thenprovides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidyagainst the relevant borrowing expenses.
41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between thecarrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base ofitems not recognized as assets and liabilities but with their tax base being able to be determined according to taxlaws) and in accordance with the tax rate applicable to the period during which the assets are expected to berecovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there isany exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit orloss, excluding those arising from the following circumstances: ① business combination; and ② thetransactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line methodover the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged asprofit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over thelease term. Initial expenses, other than those with material amount and eligible for capitalization which arerecognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are chargedinto profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inceptionof lease and the present value of minimum lease payment is recognized as the value of leased assets. The
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded asunrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For eachperiod of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception oflease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecuredbalance also recorded. The difference between the sum of minimum lease income, initial direct expense andunsecured balance and the sum of their present values is recognized as unrealized finance income. For each periodof the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company andpresented separately under operation segments and financial statements, which has fulfilled one of the followingcriteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operatingregion; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss fromdiscontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do notmeet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gainsand losses should be presented as profit or loss from continuing operations. Operational gains and losses anddisposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should bereported as profits or losses of discontinuing operations.
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
√ Applicable □ Not applicable
The contents and reasons of accounting policy changes | Examination and approval procedures | Note |
The leasing assets are listed as "Right-of-use assets", "Lease liability" and "Non-current liability due within one year" | Deliberated and approved at 31st Session of 10th BOD | On December 31, 2021, in the balance sheet, the right-of-use assets has 1,505,258.90 yuan recorded; lease liability has 228,302.37 yuan recorded and the Non-current liability due within one year presented as 1,456,782.04 yuan. |
According to the provisions of the new lease standards, for a contract that existed before the first execution date,the Group chooses not to reassess whether it is a lease or contains a lease.
1) The Group as the lessee
The Group chooses to adjust only the cumulative impact of lease contracts that have not been completed as ofJanuary 1, 2021. The cumulative impact amount of the first execution adjusts the amount of retained earnings andother related items in the financial statements at the beginning of the current period of the first execution (i.e.January 1, 2021), and no adjustment is made to the comparable period information.
① For finance leases prior to the first execution date, the Group shall respectively measure the right-of-use assetsand lease liabilities according to the original book values of the finance lease assets and the finance leasepayables;
② For operating leases prior to the first execution date, the Group measures the lease liabilities based on thepresent value of the remaining lease payments discounted at the incremental borrowing rate on the first executiondate, and adjusts each lease based on an amount equal to the lease liability and according to the prepaid rent asnecessary to determine the right-of-use asset.
③The Group conducts impairment test on right-of-use assets in accordance with relevant regulations on assetimpairment and performs corresponding accounting treatment.The Group adopts simplified treatment for operating leases whose leased assets are low-value assets before thefirst execution date or operating leases to be completed within 12 months, and no right-of-use assets and leaseliabilities are recognized. In addition, the Group has adopted the following simplified treatment for operatingleases prior to the first execution date :
① When measuring lease liabilities, the same discount rate may be used for leases with similar characteristics;the measurement of right-of-use assets may not include initial direct costs;
② Where there is an option to renew the lease or to terminate the lease, the Group determines the lease termbased on the actual exercise of the option before the first execution date and other latest information;
③As an alternative to the impairment test for right-of-use assets, the Group assesses whether the contractincluding a lease is a loss-making contract before the first execution date, and adjusts the right-of-use assetsaccording to the amount of the loss provision included in the balance sheet before the first execution date;
④ For lease changes before the first execution date, the Group conducts accounting treatment according to thefinal arrangement of lease changes.For the outstanding minimum lease payments for significant operating leases disclosed in the 2020 financialstatements, the Group adjusts them according to the difference between the discounted present value of theincremental borrowing rate of the Group as a lessee on 1 January 2021 and the lease liability included in thebalance sheet on 1 January 2021, the process is as follows:
Minimum lease payments for significant operating lease as of December 31, 2020 | 3,195,123.18 |
Add:increase in lease payments not recognized as of December 31, 2020, but reasonable certain that the renewal option will be exercised | |
Less:Minimum lease payments using the simplified processing | |
Including: Short-term lease | |
Leases with less than 12 months remaining | |
Operating lease payments as of January 1, 2021 | 3,195,123.18 |
Weighted average incremental borrowing rate | 4.75% |
Lease liability as of January 1, 2021(one year expiry included) | 3,051,512.28 |
In addition, starting from the first execution date, the cash paid by the Group to repay the principal and interest oflease liabilities is included in the cash flow statement as cash outflows from financing activities, and theshort-term lease payments and low-value asset lease payments made with simplified treatment and variable leasepayments that are not included in the measurement of lease liability are still included in operating cash outflows.
2) The Group as the lessor
For a sub-lease classified as an operating lease before the first execution date and subsisting after the firstexecution date, the Company re-evaluates it on the first execution date based on the remaining term of contractand the terms of the original lease and sub-lease, and classifies it in accordance with the provisions of the newlease standards. If it is reclassified as a finance lease, the Company will account for it as a new finance lease.Except for sub-leases, the Company does not need to adjust its lease as a lessor in accordance with the new leasestandards. The Company conducts accounting treatment in accordance with the new lease standards from the firstexecution date.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjust the financial statement items at beginning of the year when first implemented the New LeaseStandards since 2021
√ Applicable □ Not applicable
Whether adjusted the item of balance sheet at year-begin or not
√Yes □No
Consolidated balance sheet
Unit: RMB/CNY
Item | 2020-12-31 | 2021-01-01 | Adjustment |
Current assets: | |||
Monetary fund | 19,887,978.05 | 19,887,978.05 | |
Settlement provisions |
Capital lent | |||
Trading financial assets | |||
Derivative financial assets | |||
Note receivable | |||
Account receivable | 55,031,424.70 | 55,031,424.70 | |
Receivable financing | |||
Accounts paid in advance | 816,541.52 | 816,541.52 | |
Insurance receivable | |||
Reinsurance receivables | |||
Contract reserve of reinsurance receivable | |||
Other account receivable | 576,770.36 | 576,770.36 | |
Including: Interest receivable | |||
Dividend receivable | |||
Buying back the sale of financial assets | |||
Inventories | 7,729,325.94 | 7,729,325.94 | |
Contract assets | |||
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 2,715,425.31 | 2,715,425.31 | |
Total current assets | 86,757,465.88 | 86,757,465.88 | |
Non-current assets: | |||
Loans and payments on behalf | |||
Debt investment | |||
Other debt investment | |||
Long-term account receivable | |||
Long-term equity investment |
Investment in other equity instrument | |||
Other non-current financial assets | |||
Investment real estate | |||
Fixed assets | 3,792,133.36 | 3,792,133.36 | |
Construction in progress | |||
Productive biological asset | |||
Oil and gas asset | |||
Right-of-use assets | 3,051,512.28 | 3,051,512.28 | |
Intangible assets | |||
Expense on Research and Development | |||
Goodwill | |||
Long-term expenses to be apportioned | |||
Deferred income tax asset | 793,170.75 | 793,170.75 | |
Other non-current asset | 400,000.00 | 400,000.00 | |
Total non-current asset | 4,985,304.11 | 8,036,816.39 | 3,051,512.28 |
Total assets | 91,742,769.99 | 94,794,282.27 | 3,051,512.28 |
Current liabilities: | |||
Short-term loans | |||
Loan from central bank | |||
Capital borrowed | |||
Trading financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | 9,606,144.94 | 9,606,144.94 | |
Accounts received in advance | |||
Contract liability | 15,254,713.38 | 15,254,713.38 | |
Selling financial asset of |
repurchase | |||
Absorbing deposit and interbank deposit | |||
Security trading of agency | |||
Security sales of agency | |||
Wage payable | 1,459,244.07 | 1,459,244.07 | |
Taxes payable | 722,321.02 | 722,321.02 | |
Other account payable | 37,882,805.52 | 37,882,805.52 | |
Including: Interest payable | |||
Dividend payable | |||
Commission charge and commission payable | |||
Reinsurance payable | |||
Liability held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | 1,175,251.38 | 1,175,251.38 | |
Total current liabilities | 66,100,480.31 | 66,100,480.31 | |
Non-current liabilities: | |||
Insurance contract reserve | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Lease liability | 3,051,512.28 | 3,051,512.28 | |
Long-term account payable | |||
Long-term wages payable | |||
Accrual liability | |||
Deferred income |
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 3,051,512.28 | 3,051,512.28 | |
Total liabilities | 66,100,480.31 | 69,151,992.59 | 3,051,512.28 |
Owner’s equity: | |||
Share capital | 551,347,947.00 | 551,347,947.00 | |
Other equity instrument | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 627,834,297.85 | 627,834,297.85 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve | |||
Surplus public reserve | 32,673,227.01 | 32,673,227.01 | |
Provision of general risk | |||
Retained profit | -1,200,950,240.88 | -1,200,950,240.88 | |
Total owner’ s equity attributable to parent company | 10,905,230.98 | 10,905,230.98 | |
Minority interests | 14,737,058.70 | 14,737,058.70 | |
Total owner’ s equity | 25,642,289.68 | 25,642,289.68 | |
Total liabilities and owner’ s equity | 91,742,769.99 | 94,794,282.27 | 3,051,512.28 |
Explanation on adjustmentThe Company implemented the new lease standard effective January 1, 2021, for the operating lease prior to the date of firstimplementation, the Company measured the lease liability using the present value of the discounted interest rate on incrementalborrowings prior to the date of initial implementation in the amount of 3,051,512.28 yuan, of which, the amount due within one yearare re-classified to non-current liability due within one year. The Company measured the right-of-use assets at an amount equal to thelease liability with necessary adjustments for prepaid rentals in the amount of 3,051,512.28 yuan.
Balance sheet of parent company
Unit: RMB/CNY
Item | 2020-12-31 | 2021-01-01 | Adjustment |
Current assets: | |||
Monetary fund | 10,097,024.59 | 10,097,024.59 | |
Trading financial assets | |||
Derivative financial assets | |||
Note receivable | |||
Account receivable | 24,274,935.96 | 24,274,935.96 | |
Receivable financing | |||
Accounts paid in advance | 800,000.00 | 800,000.00 | |
Other account receivable | 115,263.05 | 115,263.05 | |
Including: Interest receivable | |||
Dividend receivable | |||
Inventories | 550,421.78 | 550,421.78 | |
Contract assets | |||
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 2,652,771.13 | 2,652,771.13 | |
Total current assets | 38,490,416.51 | 38,490,416.51 | |
Non-current assets: | |||
Debt investment | |||
Other debt investment | |||
Long-term account receivable | |||
Long-term equity investment | 19,960,379.73 | 19,960,379.73 | |
Investment in other equity instrument | |||
Other non-current financial assets | |||
Investment real estate |
Fixed assets | 3,530,501.40 | 3,530,501.40 | |
Construction in progress | |||
Productive biological asset | |||
Oil and gas asset | |||
Right-of-use assets | 737,823.53 | 737,823.53 | |
Intangible assets | |||
Expense on Research and Development | |||
Goodwill | |||
Long-term expenses to be apportioned | |||
Deferred income tax asset | |||
Other non-current asset | 400,000.00 | 400,000.00 | |
Total non-current asset | 23,890,881.13 | 24,628,704.66 | 737,823.53 |
Total assets | 62,381,297.64 | 63,119,121.17 | 737,823.53 |
Current liabilities: | |||
Short-term loans | |||
Trading financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | 748,604.24 | 748,604.24 | |
Accounts received in advance | |||
Contract liability | 14,685,423.04 | 14,685,423.04 | |
Wage payable | 1,146,371.58 | 1,146,371.58 | |
Taxes payable | 24,906.50 | 24,906.50 | |
Other account payable | 39,409,824.37 | 39,409,824.37 | |
Including: Interest payable | |||
Dividend payable | |||
Liability held for sale |
Non-current liabilities due within one year | |||
Other current liabilities | 1,101,243.63 | 1,101,243.63 | |
Total current liabilities | 57,116,373.36 | 57,116,373.36 | |
Non-current liabilities: | |||
Long-term loans | |||
Bonds payable | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Lease liability | 737,823.53 | 737,823.53 | |
Long-term account payable | |||
Long-term wages payable | |||
Accrual liability | |||
Deferred income | |||
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 737,823.53 | 737,823.53 | |
Total liabilities | 57,116,373.36 | 57,854,196.89 | 737,823.53 |
Owner’s equity: | |||
Share capital | 551,347,947.00 | 551,347,947.00 | |
Other equity instrument | |||
Including: Preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 627,834,297.85 | 627,834,297.85 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve |
Surplus public reserve | 32,673,227.01 | 32,673,227.01 | |
Retained profit | -1,206,590,547.58 | -1,206,590,547.58 | |
Total owner’ s equity | 5,264,924.28 | 5,264,924.28 | |
Total liabilities and owner’ s equity | 62,381,297.64 | 63,119,121.17 | 737,823.53 |
Explanation on adjustmentThe Company implemented the new lease standard effective January 1, 2021, for the operating lease prior to the date of firstimplementation, the Company measured the lease liability using the present value of the discounted interest rate on incrementalborrowings prior to the date of initial implementation in the amount of 737,823.53 yuan, of which, the amount due within one year arere-classified to non-current liability due within one year. The Company measured the right-of-use assets at an amount equal to the leaseliability with necessary adjustments for prepaid rentals in the amount of 737,823.53 yuan.
Explanation on retrospective adjustment of prior period comparative data for the first implementation ofthe new lease standard from 2021
□ Applicable √ Not applicable
45.Other
NilVI. Taxes
1. Main tax category and tax rate
Tax category | Tax calculation evidence | Tax rate |
Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%, 6%, 13% |
Tax for maintaining and building cities | Turnover tax payable | 7% |
Enterprise income tax | Taxable income | 25%, 20%, 15% |
Disclose reasons for different taxpaying body
Taxpaying body | Income tax rate |
The Company | 15.00% |
Shenzhen Emmelle Industry Co., Ltd. | 25.00% |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 20.00% |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 20.00% |
2. Tax preference
Note 1: The Company obtained the high-tech enterprise certificate "GR202044200651" jointly approved by theShenzhen Science and Technology Innovation Commission, the Shenzhen Finance Bureau, and the Shenzhen TaxService, State Taxation Administration on December 11, 2020, the validity period is from 2020 to 2022. Therefore,the company enjoys a preferential tax rate of 15% in 2021.Note 2: According to the "Enterprise Income Tax Law of the People's Republic of China" and its implementationregulations, the "Notice of the State Taxation Administration and Ministry of Finance on the Implementation ofInclusive Tax Relief Policies for Small and Micro Enterprises" (CS[2020] No. 13) and other provisions, fromJanuary 1, 2021 to December 31, 2021, the portion of the annual taxable income of small, low-profit enterprisesthat does not exceed 1 million yuan will be included in the taxable income by 25%, and the corporate income taxwill be paid at a tax rate of 20%. The portion of the annual taxable income of small, low-profit enterprisesexceeding 1 million yuan but not exceeding 3 million yuan will be included in the taxable income by50%, and thecorporate income tax will be paid at a tax rate of 20%. Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. andShenzhen Emmelle Cloud Technology Co., Ltd., the Company’s subsidiaries, are small and low-profit enterprises,so a preferential tax rate of 20% is applicable to them.
3. Other
NilVII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Cash on hand | 27,587.25 | 21,530.26 |
Bank deposit | 33,219,370.67 | 19,866,447.79 |
Total | 33,246,957.92 | 19,887,978.05 |
Other explanationAt the end of the period, there are no mortgages, pledges, freezes, etc. that restrict the use of funds.At the end of the period, there are no funds deposited overseas or with potential recovery risks.
2. Trading financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Including: |
Including: |
Other explanation:
Nil
3. Derivative financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
4. Notes receivable
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Including: | ||||||||||
Including: | ||||||||||
Total | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
Unit: RMB/CNY
Item | Amount pledged at period-end |
Total | 0.00 |
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheetdate
Unit: RMB/CNY
Item | Amount derecognition at period-end | Amount not derecognition at period-end |
Total | 0.00 | 0.00 |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item | Amount transfer to account receivable at period-end |
Total | 0.00 |
Other explanationNil
(6) Note receivable actually charge-off in the period
Unit: RMB/CNY
Item | Amount charge-off |
Including important note receivable charge-off:
Unit: RMB/CNY
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for | Amount cause by |
charge-off | related transactions or not (Y/N) | ||||
Total | -- | 0.00 | -- | -- | -- |
Explanation on note receivable change-off:
Nil
5. Account receivable
(1) Category
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with bad debt provision accrual by single basis | 24,072,436.14 | 44.44% | 7,229,285.93 | 30.03% | 16,843,150.21 | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 |
Including: | ||||||||||
Accounts with single significant amount but with bad debts provision accrued individually | 18,925,666.88 | 34.94% | 3,785,133.38 | 20.00% | 15,140,533.50 | |||||
Accounts with single minor amount but with bad debts provision accrued individually | 5,146,769.26 | 9.50% | 3,444,152.55 | 66.92% | 1,702,616.71 | 10,400,557.65 | 17.33% | 4,821,546.38 | 46.36% | 5,579,011.27 |
Account receivable with bad debt provision accrual by portfolio | 30,097,225.06 | 55.56% | 90,291.68 | 0.30% | 30,006,933.38 | 49,601,217.08 | 82.67% | 148,803.65 | 0.30% | 49,452,413.43 |
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis | 30,097,225.06 | 55.56% | 90,291.68 | 0.30% | 30,006,933.38 | 49,601,217.08 | 82.67% | 148,803.65 | 0.30% | 49,452,413.43 |
method) | ||||||||||
Total | 54,169,661.20 | 100.00% | 7,319,577.61 | 13.51% | 46,850,083.59 | 60,001,774.73 | 100.00% | 4,970,350.03 | 8.28% | 55,031,424.70 |
Bad debt provision accrual on single basis: Accounts with single significant amount but with bad debts provision accruedindividually
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Guangshui Jiaxu Energy Technology Co., Ltd. | 18,925,666.88 | 3,785,133.38 | 20.00% | The payment is overdue and there is an impairment risk |
Total | 18,925,666.88 | 3,785,133.38 | -- | -- |
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Sichuan Wanling Electric Technology Co., Ltd. | 1,102,072.20 | 1,102,072.20 | 100.00% | Expected to be difficult to recover |
Suzhou Daming Vehicle Industry Co., Ltd. | 990,658.42 | 495,329.21 | 50.00% | Expected to be difficult to recover |
Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 444,378.50 | 50.00% | Expected to be difficult to recover |
Dongguan Daxiang New Energy Co., Ltd. | 741,734.00 | 222,520.20 | 30.00% | Expected to be difficult to recover |
Shijiazhuang Dasong Tech. Co., Ltd | 677,064.00 | 677,064.00 | 100.00% | Expected to be difficult to recover |
Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 104,440.80 | 30.00% | Expected to be difficult to recover |
Shanghai Swen Electric Vehicle Co., Ltd. | 281,507.50 | 281,507.50 | 100.00% | Expected to be difficult to recover |
Tianjin Huihui Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult to recover |
Total | 5,146,769.26 | 3,444,152.55 | -- | -- |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio: Accounts receivable with provision for bad debts by aging analysis method
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 28,013,989.01 | 84,041.97 | 0.30% |
1-2 years (2 years included) | 2,073,521.05 | 6,220.56 | 0.30% |
2-3 years (3 years included) | 9,715.00 | 29.15 | 0.30% |
Total | 30,097,225.06 | 90,291.68 | -- |
Explanation on portfolio basis:
The account receivable of CBC with a single significant amount are those with a single amount of 5 million yuan more.Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Book balance |
Within one year (one year included) | 47,056,496.03 |
Within one year | 47,056,496.03 |
1-2 years | 3,274,208.05 |
2-3 years | 1,422,393.00 |
Over 3 years | 2,416,564.12 |
3-4 years | 355,920.42 |
4-5 years | 1,383,579.70 |
Over 5 years | 677,064.00 |
Total | 54,169,661.20 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or | Write off | Other |
reversal | ||||||
Bad debt provision for accounts receivable | 4,970,350.03 | 4,230,561.85 | 1,881,334.27 | 7,319,577.61 | ||
Total | 4,970,350.03 | 4,230,561.85 | 1,881,334.27 | 0.00 | 0.00 | 7,319,577.61 |
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
Enterprise | Amount collected or reversal | Collection way |
Total | 0.00 | -- |
Nil
(2) Account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item | Amount charge-off |
Including major account receivables charge-off:
Unit: RMB/CNY
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 18,925,666.88 | 34.94% | 3,785,133.38 |
Xi’an Zhongjinpu Trading Co., Ltd. | 9,446,085.21 | 17.44% | 28,338.26 |
Shenzhen Yunshang Jewelry Co., Ltd. | 4,627,219.04 | 8.54% | 13,881.66 |
Fuzhou Cangshan Dingjue Jewelry Firm | 4,518,161.98 | 8.34% | 13,554.49 |
Fuzhou Rongrun Jewelry | 4,146,308.99 | 7.65% | 12,438.93 |
Co., Ltd. | |||
Total | 41,663,442.10 | 76.91% |
(5) Assets and liability resulted by account receivable transfer and continuous involvement
NilOther explanation:
Nil
(6) Account receivable derecognition due to transfer of financial assets
Nil
6. Receivables financing
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Other explanation:
Nil
7. Account paid in advance
(1) By account age
Unit: RMB/CNY
Account age | Ending balance | Opening balance | ||
Amount | Ratio | Amount | Ratio | |
Within one year | 1,300,408.57 | 100.00% | 816,541.52 | 100.00% |
Total | 1,300,408.57 | -- | 816,541.52 | -- |
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Enterprise | Relationship with the Company | Amount | Account age | Nature | Ratio in total advance e |
payment (%) | |||||
Shenzhen Hualinglong Jewelry Culture Technology Co., Ltd. | Non-related party | 471,350.00 | Within 1 year (including 1 year) | Prepaid design fee | 36.25 |
Taixing Jiaye Electronic Technology Co., Ltd. | Non-related party | 238,535.40 | Within 1 year (including 1 year) | Prepayment | 18.34 |
Shanghai Baoxinlai Diamond Co., Ltd. | Non-related party | 200,000.00 | Within 1 year (including 1 year) | Prepayment | 15.38 |
Hubei Zhongyi Technology Co., Ltd. | Non-related party | 87,066.10 | Within 1 year (including 1 year) | Prepayment | 6.70 |
Wuzhou Tongchuang New Energy Materials Co., Ltd. | Non-related party | 85,000.00 | Within 1 year (including 1 year) | Prepayment | 6.54 |
Total | 1081951.50 | 83.20 |
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds 5% (included) votingrights of the Company among Advance Payment
8. Other account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other account receivable | 494,695.27 | 576,770.36 |
Total | 494,695.27 | 576,770.36 |
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
2) Important overdue interest
Unit: RMB/CNY
Borrower | Ending Balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or invested company) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or invested company) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
Unit: RMB/CNY
Account nature | Ending book balance | Opening book balance |
Deposit or margin | 576,539.00 | 618,609.00 |
Payment for equipment | 311,400.00 | 311,400.00 |
Personal loan of employees | 20,144.82 | 10,396.88 |
Total | 908,083.82 | 940,405.88 |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 | Expected credit losses for the entire duration (without | Expected credit losses for the entire duration (with |
months | credit impairment occurred) | credit impairment occurred) | ||
Balance on January 1, 2021 | 363,635.52 | 363,635.52 | ||
January 1, 2021 balance in the current period | —— | —— | —— | —— |
Accrued in this period | 49,753.03 | 49,753.03 | ||
Balance on December 31, 2021 | 413,388.55 | 413,388.55 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Book balance |
Within one year (one year included) | 86,144.82 |
Within one year | 86,144.82 |
1-2 years | 350,039.00 |
2-3 years | 60,000.00 |
Over 3 years | 411,900.00 |
3-4 years | 50,000.00 |
4-5 years | 10,200.00 |
Over 5 years | 351,700.00 |
Total | 908,083.82 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables-The first stage | 363,635.52 | 49,753.03 | 413,388.55 | |||
Total | 363,635.52 | 49,753.03 | 0.00 | 0.00 | 0.00 | 413,388.55 |
NilImportant amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Nil
4) Other account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item | Amount charge-off |
Including major other account receivables charge-off:
Unit: RMB/CNY
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Other Explanation on account receivable charge-off
5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Enterprise | Nature | Ending Balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
Shenzhen Luwei Mechatronic Equipment Co., Ltd | Payment for equipment | 300,000.00 | Over 5 years | 33.04% | 300,000.00 |
Shenzhen Gangdelong Industrial Co., Ltd. | Margin or deposit | 211,840.00 | 1-2 years | 23.33% | 635.52 |
Alipay (China) Network Technology Co., Ltd. customer reserve fund | Margin or deposit | 170,000.00 | Within 4 years | 18.72% | 50,360.00 |
Shenye Pengji (Group) Co., Ltd. | Margin or deposit | 60,222.00 | 1-2 years | 6.63% | 180.67 |
Quick Money Payment Clearing Information Co., Ltd. | Margin or deposit | 30,000.00 | Within 5 years | 3.30% | 30,000.00 |
Total | -- | 772,062.00 | -- | 85.02% | 381,176.19 |
6) Account receivable with government grants involved
Unit: RMB/CNY
Enterprise | Government grants | Ending Balance | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognition due to financial assets transferNil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
9. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | Book balance | Provision for inventory depreciation or contract performance cost impairment provision | Book value | |
Raw materials | 5,151,013.66 | 5,151,013.66 | 1,298,565.61 | 1,298,565.61 | ||
Finished goods | 2,917,927.37 | 376,064.05 | 2,541,863.32 | 2,545,994.24 | 278,533.53 | 2,267,460.71 |
Goods sold | 5,656.40 | 5,656.40 | ||||
Consigned processing materials | 555,696.79 | 555,696.79 | 4,157,643.22 | 4,157,643.22 | ||
Total | 8,624,637.82 | 376,064.05 | 8,248,573.77 | 8,007,859.47 | 278,533.53 | 7,729,325.94 |
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(2) Provision for inventory depreciation or contract performance cost impairment provision
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Other | Switch back or charge-off | Other | |||
Raw materials | ||||||
Finished goods | 278,533.53 | 99,941.65 | 2,411.13 | 376,064.05 | ||
Total | 278,533.53 | 99,941.65 | 2,411.13 | 376,064.05 |
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(4) Description of the current amortization amount of contract performance costsNil
10. Contractual assets
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Book value of contract assets has major changes and causes:
Unit: RMB/CNY
Item | Amount changes | Reason for change |
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses, please refer to thedisclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Accrual of impairment provision in the period
Unit: RMB/CNY
Item | Accrued in this period | Switch-back in the period | Reversal/Charge-off in the period | Causes |
Total | 0.00 | 0.00 | 0.00 | -- |
Other explanation:
Nil
11. Assets held for sale
Unit: RMB/CNY
Item | Ending book balance | Impairment provision | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Other explanation:
Nil
12. Non-current asset due within one year
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Important creditors’ investment/Other creditors’ investment
Unit: RMB/CNY
Creditor's rights | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Other explanation:
Nil
13. Other current assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Tax credit and input tax to be certified | 1,078,351.48 | 2,652,771.13 |
Prepaid corporate income tax | 51,574.09 | |
Non-public offering of stock issuance fees | 735,849.05 | |
Prepaid input tax | 11,080.09 | |
Total | 1,814,200.53 | 2,715,425.31 |
Other explanation:
Nil
14. Creditors’ investment
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Important creditors’ investment
Unit: RMB/CNY
Creditor's rights | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Accrual of impairment provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2021 | 0.00 | |||
January 1, 2021 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 0.00 | |||
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2021 | 0.00 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
15. Other creditors’ investment
Unit: RMB/CNY
Item | Opening Balance | Accrued interest | Change of fair value in the period | Ending Balance | Cost | Cumulative changes of fair value | Cumulative loss impairment recognized in other comprehensive income | Note |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | —— |
Important other creditors’ investment
Unit: RMB/CNY
Other creditors’ investment | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Due date | Face value | Coupon rate | Actual rate | Due date | |
Total | 0.00 | —— | —— | —— | 0.00 | —— | —— | —— |
Accrual of impairment provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2021 | 0.00 | |||
January 1, 2021 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 0.00 | |||
Reversal in Current Period | 0.00 |
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2021 | 0.00 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance | Discount rate interval | ||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Total | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Impairment of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2021 | 0.00 | |||
January 1, 2021 balance in the current period | —— | —— | —— | —— |
--Transfer to the second stage | 0.00 | |||
-- Transfer to the third stage | 0.00 | |||
-- Reversal to the second stage | 0.00 | |||
-- Reversal to the first stage | 0.00 | |||
Accrued in this period | 0.00 |
Reversal in Current Period | 0.00 | |||
Conversion in Current Period | 0.00 | |||
Write off in this period | 0.00 | |||
Other changes | 0.00 | |||
Balance on December 31, 2021 | 0.00 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementNilOther explanationNil
17. Long-term equity investments
Unit: RMB/CNY
The invested entity | Opening Balance (Book value) | Changes in the period (+, -) | Ending Balance (Book value) | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
II. Associated enterprise | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
18. Other equity instrument investment
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Itemized the non-tradable equity instrument investment in the period
Unit: RMB/CNY
Item | Dividend income recognized | Cumulative gains | Cumulative losses | Retained earnings transfer from other comprehensive income | Causes of those that designated measured by fair value and with its variation reckoned into other comprehensive income | Cause of retained earnings transfer from other comprehensive income |
Other explanation:
Nil
19. Other non-current financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable √Not applicable
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
Unit: RMB/CNY
Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanationNil
21. Fixed assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Fixed assets | 3,439,212.00 | 3,792,133.36 |
Total | 3,439,212.00 | 3,792,133.36 |
(1) Fixed assets
Unit: RMB/CNY
Item | Housing and buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
I. Original book value: | |||||
1.Opening balance | 2,959,824.00 | 1,414,480.77 | 958,593.21 | 248,254.93 | 5,581,152.91 |
2.Current increased | 13,618.00 | 5,272.56 | 18,890.56 | ||
(1) Purchase | 13,618.00 | 5,272.56 | 18,890.56 | ||
(2) Construction in process transfer-in | |||||
(3) The increase in business combination | |||||
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Ending balance | 2,959,824.00 | 1,428,098.77 | 958,593.21 | 253,527.49 | 5,600,043.47 |
II. Accumulated depreciation | |||||
1.Opening balance | 599,364.36 | 316,423.81 | 690,963.97 | 182,267.41 | 1,789,019.55 |
2.Current increased | 133,192.08 | 135,168.35 | 93,503.04 | 9,948.45 | 371,811.92 |
(1) Accrual | 133,192.08 | 135,168.35 | 93,503.04 | 9,948.45 | 371,811.92 |
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Ending balance | 732,556.44 | 451,592.16 | 784,467.01 | 192,215.86 | 2,160,831.47 |
III. Impairment provision | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal or scrap | |||||
4.Ending balance | |||||
IV. Book value | |||||
1.Ending book value | 2,227,267.56 | 976,506.61 | 174,126.20 | 61,311.63 | 3,439,212.00 |
2.Opening book value | 2,360,459.64 | 1,098,056.96 | 267,629.24 | 65,987.52 | 3,792,133.36 |
(2) Fixed assets temporary idle
Unit: RMB/CNY
Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
Item | Ending book value |
(4) Fixed assets without property rights certificate
Unit: RMB/CNY
Item | Book value | Reasons for failing to complete the property rights certificate |
Six properties in Lianxin Garden | 2,227,267.56 | The six properties of Lianxin Garden 7-20F with original value of 2,959,824.00 Yuan. The property purchasing refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with any units or individuals except the government, and the company has no property certification on the above mentioned properties. |
Other explanationNil
(5) Fixed assets disposal
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanationNil
22. Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(1) Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Changes in significant construction in progress
Unit: RMB/CNY
Item | Budget | Opening | increased | Fixed | Other | Ending | Proporti | Progress | Accumul | including | Interest | Source of |
balance | in the Period | assets transfer-in in the Period | decreased in the Period | balance | on of project investment in budget | ated amount of interest capitalization | : interest capitalized amount of the year | capitalization rate of the year | funds | |||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
(3) Provision for impairment of construction in progress in the current period
Unit: RMB/CNY
Item | Accrual in the period | Reasons for accrual |
Total | 0.00 | -- |
Other explanationNil
(4) Engineering materials
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
Unit: RMB/CNY
Item | Houses and buildings | Total |
I. Original book value: | ||
1.Opening balance | 3,051,512.28 | 3,051,512.28 |
2.Current increased | ||
3.Current decreased | ||
4.Ending balance | 3,051,512.28 | 3,051,512.28 |
II. Accumulated depreciation | ||
1.Opening balance | ||
2.Current increased | 1,546,253.38 | 1,546,253.38 |
(1) Accrual | 1,546,253.38 | 1,546,253.38 |
3.Current decreased | ||
(1) Disposal or scrap | ||
4.Ending balance | 1,546,253.38 | 1,546,253.38 |
III. Impairment provision | ||
1.Opening balance | ||
2.Current increased | ||
(1) Accrual | ||
3.Current decreased | ||
(1) Disposal or scrap | ||
4.Ending balance | ||
IV. Book value | ||
1.Ending book value | 1,505,258.90 | 1,505,258.90 |
2.Opening book value | 3,051,512.28 | 3,051,512.28 |
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Item | Land use right | Patent | Non-patent technology | Total | |
I. Original book value | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) Purchase | |||||
(2) Internal R & D | |||||
(3) The increase in business combination | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | |||||
II. Accumulated depreciation | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | |||||
III. Impairment provision | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) Accrual | |||||
3.Current decreased | |||||
(1) Disposal | |||||
4.Ending balance | |||||
IV. Book value | |||||
1.Ending book value | |||||
2.Opening book value |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
Unit: RMB/CNY
Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanation:
Nil
27. Expense on Research and Development
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | ||||
Internal development expenditure | Other | Confirmed as intangible assets | Transfer to current profit and loss | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
28. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
Formed by business combination | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Impairment provision of goodwill
Unit: RMB/CNY
The invested entity or items | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Dispose | |||||
Total | 0.00 | 0.00 | 0.00 | 0.00 |
Information about the asset group or asset group combination in which the goodwill is locatedNilExplain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), andthe impairment loss of goodwill:
NilImpact of impairment test for goodwillNilOther explanationNil
29. Long-term expenses to be apportioned
Unit: RMB/CNY
Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
Total | 0.00 | 0.00 | 0.00 |
Other explanationNil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Impairment provision of assets | 64,046.67 | 3,041,804.74 | 793,170.75 | 3,172,682.98 |
Total | 64,046.67 | 3,041,804.74 | 793,170.75 | 3,172,682.98 |
(2) Deferred income tax liabilities without offset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Total | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax assets | 64,046.67 | 793,170.75 |
(4) Details of unrecognized deferred income tax assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Year | Ending amount | Opening amount | Note |
Other explanation:
Nil
31. Other non-current assets
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Advance payment for house | 400,000.00 | 0.00 | 400,000.00 | 400,000.00 | 0.00 | 400,000.00 |
Total | 400,000.00 | 0.00 | 400,000.00 | 400,000.00 | 0.00 | 400,000.00 |
Other explanation:
As of December 31, 2021, the Housing and Construction Bureau of Luohu District, Shenzhen City has not delivered houses forenterprise talents in Luohu District.
32. Short-term loans
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
Unit: RMB/CNY
Borrower | Ending Balance | Lending rate | Overdue time | Overdue rate |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
33. Trading financial liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Including: | ||
Including: |
Other explanation:
Nil
34. Derivative financial liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
35. Notes payable
Unit: RMB/CNY
Category | Ending balance | Opening balance |
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Within one year (one year included) | 7,347,161.83 | 8,691,337.93 |
1-2 years (2 years included) | 48,424.51 | 423,346.08 |
2-3 years (3 years included) | 410,259.07 | 487,016.93 |
3-4 years (4 years included) | 487,016.93 | 1,240.00 |
4-5 years (5 years included) | 1,240.00 | |
Over 5 years | 3,204.00 | 3,204.00 |
Total | 8,297,306.34 | 9,606,144.94 |
(2) Important account payable with account age over one year
Unit: RMB/CNY
Item | Ending balance | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
Other explanation:
Nil
37. Account received in advance
(1) Account received in advance
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(2) Account received in advance with over one year book age
Unit: RMB/CNY
Item | Ending balance | Reasons of un-paid or carry-over |
Total | 0.00 | -- |
38. Contract liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Goods received in advance | 124,328.07 | 569,290.34 |
Cooperative received in advance | 9,174,311.93 | |
Rent received in advance | 5,511,111.11 | |
Total | 124,328.07 | 15,254,713.38 |
Book value has major changes in the period and causes
Unit: RMB/CNY
Item | Amount changes | Reason for change |
Total | 0.00 | —— |
39. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
I. Short-term compensation | 1,459,244.07 | 7,554,939.70 | 8,090,706.67 | 923,477.10 |
II. Post-employment benefit-Defined contribution plan | 438,973.15 | 438,973.15 | ||
Total | 1,459,244.07 | 7,993,912.85 | 8,529,679.82 | 923,477.10 |
(2) Short-term compensation
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Wages, bonus, allowances and subsidy | 1,452,981.20 | 6,800,521.07 | 7,335,325.27 | 918,177.00 |
2. Employee benefits | 38,925.89 | 38,925.89 | ||
3. Social insurance | 313,375.83 | 313,375.83 | ||
Including: Medical insurance | 293,934.41 | 293,934.41 | ||
Work injury insurance | 1,246.65 | 1,246.65 | ||
Maternity insurance | 18,194.77 | 18,194.77 | ||
4. Housing accumulation fund | 332,809.57 | 332,809.57 | ||
5. Labor union expenditure and personnel education expense | 6,262.87 | 69,307.34 | 70,270.11 | 5,300.10 |
Total | 1,459,244.07 | 7,554,939.70 | 8,090,706.67 | 923,477.10 |
(3) Defined contribution plan
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Basic endowment insurance | 430,870.22 | 430,870.22 | ||
2. Unemployment insurance | 8,102.93 | 8,102.93 | ||
Total | 438,973.15 | 438,973.15 |
Other explanation:
At the end of the period, there were no arrears in employee compensation.
40. Taxes payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Value added tax | 826,399.46 | 551,216.66 |
Corporate income tax | 27,591.59 | 140,959.81 |
Individual income tax | 19,002.77 | 23,398.74 |
Tax for maintaining and building cities | 15,940.70 | 431.55 |
Stamp tax | 11,223.31 | 6,043.60 |
Educational surtax | 11,348.69 | 270.66 |
Total | 911,506.52 | 722,321.02 |
Other explanation:
Nil
41. Other account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other account payable | 61,407,301.04 | 37,882,805.52 |
Total | 61,407,301.04 | 37,882,805.52 |
(1) Interest payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Important interest overdue without paid:
Unit: RMB/CNY
Borrower | Amount overdue | Overdue reason |
Total | 0.00 | -- |
Other explanation:
Nil
(2) Dividend payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1) By nature
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Custodian and common benefit debts | 25,501,476.16 | 18,728,866.44 |
Warranty and guarantee money | 10,756,806.00 | 10,589,040.00 |
Intercourse funds | 23,328,000.00 | 6,500,000.00 |
Other payable service charge (intermediary services included) | 624,528.30 | 832,359.55 |
Collection and payment | 648,626.35 | 654,997.35 |
Other | 547,864.23 | 577,542.18 |
Total | 61,407,301.04 | 37,882,805.52 |
2) Significant other payable with over one year age
Unit: RMB/CNY
Item | Ending balance | Reasons of un-paid or carry-over |
Custodian and common benefit debts | 25,501,476.16 | |
Wansheng Industrial Holdings (Shenzhen) Co., Ltd. | 9,000,000.00 | Performance bond |
Shenzhen Renhui Woodware Products Co., Ltd. | 6,828,000.00 | Rental deposit |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
Total | 47,829,476.16 | -- |
Other explanationNil
42. Liability held for sale
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
43. Non-current liabilities due within one year
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Lease liabilities due within one year | 1,456,782.04 | |
Total | 1,456,782.04 |
Other explanation:
Nil
44. Other current liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
VAT received in advance | 11,700.06 | 1,175,251.38 |
Total | 11,700.06 | 1,175,251.38 |
Changes of short-term bond payable:
Unit: RMB/CNY
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
45. Long-term loans
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Explanation on category of long-term loans:
NilOther explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(2) Changes of bonds payable (not including the other financial instrument of preferred stock andperpetual capital securities that classify as financial liability)
Unit: RMB/CNY
Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Convertible conditions and time for shares transfer for the convertible bondsNil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endNilChanges of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
Basis for financial liability classification for other financial instrumentNilOther explanationNil
47. Lease liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Lease Payments | 215,367.24 | 2,907,901.38 |
Unrecognized financing charges | 12,935.13 | 143,610.90 |
Total | 228,302.37 | 3,051,512.28 |
Other explanationNil
48. Long-term account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(1) By nature
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
(2) Special payable
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes of formation |
Total | 0.00 | 0.00 | -- |
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
Item | Current Period | Last Period |
Scheme assets:
Unit: RMB/CNY
Item | Current Period | Last Period |
Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
Item | Current Period | Last Period |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Nil
Major actuarial assumption and sensitivity analysis:
NilOther explanation:
Nil
50. Accrual liability
Unit: RMB/CNY
Item | Ending balance | Opening balance | Causes of formation |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes of formation |
Total | 0.00 | 0.00 | -- |
Item with government grants involved:
Unit: RMB/CNY
Liability | Opening Balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending Balance | Assets-related/income related |
Other explanation:
Nil
52. Other non-current liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
Nil
53. Share capital
Unit: RMB/CNY
Opening balance | Changes in the period (+, -) | Ending balance | |||||
New shares issued | Bonus share | Shares transferred from capital | Other | Subtotal |
reserve | |||||||
Total shares | 551,347,947.00 | 551,347,947.00 |
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-endNil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding financial instrument | Period-begin | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
Total | 0 | 0 | 0.00 | 0 | 0.00 | 0 |
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
NilOther explanation:
Nil
55. Capital public reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
1. Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
2.Other | 145,253,709.62 | 145,253,709.62 | ||
Total | 627,834,297.85 | 627,834,297.85 |
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by wholeshareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
Unit: RMB/CNY
Item | Opening balance | Current Period | Ending balance | |||||
Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less: income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
Total other comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for thearbitraged items:
Nil
58. Reasonable reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Statutory surplus reserves | 32,673,227.01 | 32,673,227.01 |
Total | 32,673,227.01 | 32,673,227.01 |
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
Unit: RMB/CNY
Item | Current period | Last Period |
Retained profit at period-end before adjustment | -1,200,950,240.88 | -1,204,736,075.56 |
Retained profit at period-begin after adjustment | -1,200,950,240.88 | -1,204,736,075.56 |
Add: net profit attributable to shareholders of parent company for this year | -1,986,692.82 | 3,785,834.68 |
Retained profit at period-end | -1,202,936,933.70 | -1,200,950,240.88 |
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit atperiod-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
Unit: RMB/CNY
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 160,519,280.02 | 151,370,945.29 | 108,929,796.13 | 100,882,228.24 |
Other business | 4,727,297.93 | 1,236,041.30 | 8,927,684.04 | 2,339,395.49 |
Total | 165,246,577.95 | 152,606,986.59 | 117,857,480.17 | 103,221,623.73 |
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
√ Yes □ No
Unit: RMB/CNY
Item | This year | Specific deductions | Last year | Specific deductions |
Amount of operating income | 165,246,577.95 | N/A | 117,857,480.17 | N/A |
Total amount of deduction items from operating income | 51,611.42 | N/A | 41,142.96 | N/A |
Proportion of total amount of deduction items from operating income to operating income | 0.03% | N/A | 0.03% | N/A |
i. Business income unrelated to the main business | —— | —— | —— | —— |
Subtotal of business income not related to main business | 0.00 | N/A | 0.00 | N/A |
ii. Income without commercial substance | —— | —— | —— | —— |
Subtotal of income without commercial substance | 0.00 | N/A | 0.00 | N/A |
Amount after deduction of operating income | 165,194,966.53 | N/A | 117,816,337.21 | N/A |
Revenue:
Unit: RMB/CNY
Contract type | 1# Division | 2# Division | Total | |
Product type | 132,915,435.90 | 32,331,142.05 | 165,246,577.95 | |
Including: | ||||
Jewelry Gold | 132,915,435.90 | 132,915,435.90 | ||
Bicycle lithium battery materials and other | 32,331,142.05 | 32,331,142.05 | ||
Classification by business area | ||||
Including: | ||||
Market or customer type | ||||
Including: | ||||
Contract type | ||||
Including: | ||||
Classification by time of |
goods transfer | ||||
Including: | ||||
Classification by contract duration | ||||
Including: | ||||
Classification by sales channel | ||||
Including: | ||||
Total | 132,915,435.90 | 32,331,142.05 | 165,246,577.95 |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not beenfulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue insubsequent years.Other explanationNil
62. Tax and extras
Unit: RMB/CNY
Item | Current Period | Last Period |
Tax for maintaining and building cities | 32,894.51 | 34,962.95 |
Educational surtax | 23,027.79 | 24,973.54 |
Stamp tax | 58,446.51 | 46,243.90 |
Other | 2,338.58 | 1,889.84 |
Total | 116,707.39 | 108,070.23 |
Other explanation:
63. Sales expenses
Unit: RMB/CNY
Item | Current Period | Last Period |
Employee compensation | 1,543,121.27 | 1,078,110.71 |
Marketing promotion fees | 705,365.87 | 1,193,544.17 |
Business entertainment | 76,402.59 | 17,031.00 |
Business travel expenses | 163,858.29 | 133,656.78 |
Lease fee | 28,050.01 | 3,834.00 |
Design fee | 572,145.63 | |
Depreciation and amortization | 143,941.58 | |
Other | 71,071.06 | 114,480.37 |
Total | 3,303,956.30 | 2,540,657.03 |
Other explanation:
Nil
64. Administrative expenses
Unit: RMB/CNY
Item | Current Period | Last Period |
Employee compensation | 2,299,457.43 | 2,152,793.42 |
Intermediary service fee | 1,496,322.29 | 1,427,424.80 |
Daily management expenses | 836,063.07 | 911,300.72 |
Depreciation and amortization | 1,522,762.50 | 292,089.38 |
Total | 6,154,605.29 | 4,783,608.32 |
Other explanation:
Nil
65. R&D expenses
Unit: RMB/CNY
Item | Current Period | Last Period |
Employee compensation and benefits | 1,701,324.36 | 1,675,573.59 |
Direct input | 368,483.15 | |
Factory rent and utilities | 178,534.58 | |
Depreciation and amortization | 251,361.22 | 93,256.20 |
Other | 84,512.00 | 191,030.05 |
Total | 2,037,197.58 | 2,506,877.57 |
Other explanation:
Nil
66. Financial expenses
Unit: RMB/CNY
Item | Current Period | Last Period |
Interest income | -127,249.64 | -89,977.25 |
Commission charge etc. | 23,566.49 | 20,827.96 |
Other | 114,323.26 | 87,868.03 |
Total | 10,640.11 | 18,718.74 |
Other explanation:
Nil
67. Other income
Unit: RMB/CNY
Sources | Current Period | Last Period |
Government subsidy | 397,876.20 | |
Individual tax withholding fee | 2,516.00 | 10,207.52 |
68. Investment income
Unit: RMB/CNY
Item | Current Period | Last Period |
Other explanation:
Nil
69. Net exposure hedge gains
Unit: RMB/CNY
Item | Current Period | Last Period |
Other explanation:
Nil
70. Income from change of fair value
Unit: RMB/CNY
Sources | Current Period | Last Period |
Other explanation:
Nil
71. Credit impairment loss
Unit: RMB/CNY
Item | Current Period | Last Period |
Bad debt loss of other account receivable | -49,753.03 | -9,707.78 |
Bad debt losses of accounts receivable | -2,349,227.58 | -593,472.35 |
Total | -2,398,980.61 | -603,180.13 |
Other explanation:
Nil
72. Losses of devaluation of asset
Unit: RMB/CNY
Item | Current Period | Last Period |
II. Loss of inventory falling price and loss of contract performance cost impairment | -99,941.65 | -198,181.03 |
Total | -99,941.65 | -198,181.03 |
Other explanation:
Nil
73. Income from assets disposal
Unit: RMB/CNY
Sources | Current Period | Last Period |
Dispose income of fixed assets | 24,936.44 |
74. Non-operating income
Unit: RMB/CNY
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Government subsidy | 100,000.00 | ||
Other | 5,680,409.27 | 6,442,649.75 | 5,680,409.27 |
Total | 5,680,409.27 | 6,542,649.75 | 5,680,409.27 |
Government grants reckoned into current gains/losses:
Unit: RMB/CNY
Government grants | Issuing subject | Offering causes | Nature | Subsidy impact current | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/income-related |
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is 5,662,149.79 Yuan andcompensation of 312,266.98 Yuan;
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,182,300.00 Yuan andcompensation of 405,166.84 Yuan;
75. Non-operating expenses
Unit: RMB/CNY
gains/losses
(Y/N)
Item
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Litigation compensation, liquidated damages and late fees, etc. | 121,651.29 | 498,050.00 | 121,651.29 |
Other | 5,182,307.93 | 5,190,229.29 | 5,182,307.93 |
Total | 5,303,959.22 | 5,688,279.29 | 5,303,959.22 |
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenanceand management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),reckoned into non-operating expenditure
76. Income tax expenses
(1) Income tax expenses
Unit: RMB/CNY
Item | Current Period | Last Period |
Current income tax expense | 204,836.60 | 140,959.81 |
Deferred income tax expense | 729,124.08 | 249,411.41 |
Total | 933,960.68 | 390,371.22 |
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item | Current Period |
Total Profit | -705,595.32 |
Income tax measured by statutory/applicable tax rate | -303,195.38 |
The impact of applying different tax rates to subsidiaries | 34,686.70 |
Impact on cost, expenses and losses that unable to deducted | 448,865.79 |
Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 753,603.57 |
Income tax expenses | 933,960.68 |
Other explanationNil
77. Other comprehensive income
Found more in Note 57
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Interest, rent, utilities, etc. | 3,776,439.39 | 10,999,135.69 |
Item cooperation | 10,000,000.00 | |
Deposits and guarantees received | 6,282,000.00 | 7,388,109.00 |
Government subsidy and individual tax handling fee refund | 400,016.00 | 110,207.52 |
Employee Current Account | 44,946.88 | |
Other | 10,463,236.95 | 26,834.21 |
Total | 20,966,639.22 | 28,524,286.42 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Expenses such as rent and property management maintenance fees | 3,642,689.57 | 5,190,228.77 |
Deposits and security deposits paid | 6,057,078.82 | 6,902,256.00 |
Sales, management and R&D expenses | 3,828,026.64 | 1,770,529.68 |
Litigation compensation, liquidated damages and late fees, etc. | 498,050.00 |
Handling expenses | 23,566.49 | 20,827.96 |
Other | 281,992.52 | 71,445.29 |
Total | 13,833,354.04 | 14,453,337.70 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
Unit: RMB/CNY
Item | Current Period | Last Period |
Lease Payments | 2,296,062.44 | |
Total | 2,296,062.44 |
Explanation on cash paid related with financing activities:
Nil
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information | Current period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | -1,639,556.00 | 4,375,706.59 |
Add: Assets impairment provision | 2,498,922.26 | 801,361.16 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 371,811.92 | 385,345.58 |
Depreciation of right-of-use assets | 1,546,253.38 | |
Amortization of intangible assets | 753,000.00 | |
Amortization of long-term deferred expenses | ||
Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -24,936.44 | |
Losses on scrapping of fixed assets (gain is listed with “-”) | ||
Gain/loss of fair value changes (gain is listed with “-”) | ||
Financial expenses (gain is listed with “-”) | 114,323.26 | |
Investment loss (gain is listed with “-”) | ||
Decrease of deferred income tax asset ((increase is listed with “-”) | 729,124.08 | 249,411.41 |
Increase of deferred income tax liability (decrease is listed with “-”) | ||
Decrease of inventory (increase is listed with “-”) | -619,189.48 | -1,849,176.67 |
Decrease of operating receivable accounts (increase is listed with “-”) | 7,017,642.37 | -15,548,865.13 |
Increase of operating payable accounts (decrease is listed with “-”) | 5,654,601.08 | 14,800,382.46 |
Other |
Net cash flows arising from operating activities | 15,673,932.87 | 3,942,228.96 |
2. Material investment and financing not involved in cash flow | -- | -- |
Conversion of debt into capital | ||
Switching Company bonds due within one year | ||
financing lease of fixed assets | ||
3. Net change of cash and cash equivalents: | -- | -- |
Balance of cash at period end | 33,246,957.92 | 19,887,978.05 |
Less: Balance of cash equivalent at year-begin | 19,887,978.05 | 6,074,367.91 |
Add: Balance at year-end of cash equivalents | ||
Less: Balance at year-begin of cash equivalents | ||
Net increase of cash and cash equivalents | 13,358,979.87 | 13,813,610.14 |
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Other explanation:
Nil
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item | Ending balance | Opening balance |
I. Cash | 33,246,957.92 | 19,887,978.05 |
Including: Cash on hand | 27,587.25 | 21,530.26 |
Bank deposit available for payment at any time | 33,219,370.67 | 19,866,447.79 |
Ⅲ. Balance of cash and cash equivalent at period-end | 33,246,957.92 | 19,887,978.05 |
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
Unit: RMB/CNY
Item | Ending book value | Restriction reasons |
Total | 0.00 | -- |
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
Monetary fund | -- | -- | |
Including: USD | |||
EURO | |||
HKD | |||
Account receivable | -- | -- |
Including: USD | |||
EURO | |||
HKD | |||
Long-term loans | -- | -- | |
Including: USD | |||
EURO | |||
HKD | |||
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitativeinformation for the arbitrage risks:
Nil
84. Government subsidy
(1) Government subsidy
Unit: RMB/CNY
Category | Amount | Item | Amount reckoned into current gains/losses |
High-tech Enterprise Subsidy | 397,876.20 | Other income | 397,876.20 |
(2) Government subsidy rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
NilVIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
Unit: RMB/CNY
Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanation:
Nil
(2) Combination cost and goodwill
Unit: RMB/CNY
Consolidation cost | |
--Cash | |
--Fair value of non-cash assets | |
--Fair value of debts issued or assumed | |
--Fair value of equity securities issued | |
-- Fair value of contingent consideration | |
--Fair value of the equity prior to the purchasing date | |
--Other | |
Total combination cost | |
Less: shares of fair value of identifiable net assets acquired | |
Goodwill/merger cost is less than the shares of fair value of identifiable net assets acquired |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
Fair value on purchasing date | Book value on purchasing date | |
Assets: | ||
Monetary funds | ||
Account receivable | ||
Inventory | ||
Fixed assets | ||
Intangible assets | ||
Liability: | ||
Loan | ||
Account payable | ||
Deferred tax liabilities | ||
Net assets | ||
Less: Minority interests | ||
Net assets acquired |
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationallyNil
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
Combined party | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other explanation:
(2) Combination cost
Unit: RMB/CNY
Consolidation cost | |
--Cash | |
-- Book value of non-cash assets | |
- Book value of debts issued or assumed | |
-- The face value of the equity securities issued | |
--Contingent consideration |
Explanation on contingent consideration and its changes:
Other explanation:
(3) Assets and liability of the combined party on combination date
Unit: RMB/CNY
Consolidation date | End of last period | |
Assets: | ||
Monetary funds | ||
Account receivable |
Inventory | ||
Fixed assets | ||
Intangible assets | ||
Liability: | ||
Loan | ||
Account payable | ||
Net assets | ||
Less: Minority interests | ||
Net assets acquired |
Contingent liability of the combined party bear during combination:
Other explanation:
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listedcompany and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly |
Shenzhen Emmelle Industry Co., Ltd. | Shenzhen | Shenzhen | Sales of bicycles and spare parts | 70.00% | Investment | |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | Shenzhen | Shenzhen | Jewelry, diamonds, gold sales | 65.00% | Investment | |
Shenzhen Emmelle Cloud Technology Co., Ltd. | Shenzhen | Shenzhen | Software and information technology service sales | 49.00% | Investment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity ofShenzhen Emmelle Cloud Technology Co., Ltd
Controlling basis for the structuring entity included in consolidated range:
NilBasis on determining to be an agent or consignor:
NilOther explanation:
Nil
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
Shenzhen Emmelle Industry Co., Ltd. | 30.00% | -490,393.66 | 1,096,312.26 | |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 35.00% | 858,925.37 | 13,396,980.54 | |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 51.00% | -21,394.89 | 590,902.72 |
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other explanation:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity ofShenzhen Emmelle Cloud Technology Co., Ltd
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Subsidiary | Ending balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
Shenzhen Emmelle Industry Co., Ltd. | 11,621,948.72 | 1,768,222.84 | 13,390,171.56 | 9,647,199.54 | 67,370.86 | 9,714,570.40 | 12,402,502.99 | 2,418,250.69 | 14,820,753.68 | 9,510,506.99 | 0.00 | 9,510,506.99 |
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 45,488,730.47 | 953,351.29 | 46,442,081.76 | 9,533,180.01 | 38,957.32 | 9,572,137.33 | 44,211,849.29 | 36,552.02 | 44,248,401.31 | 9,832,529.38 | 0.00 | 9,832,529.38 |
Shenzhen Emmelle Cloud Technology Co., Ltd. | 1,974,472.85 | 0.00 | 1,974,472.85 | 4,797.11 | 0.00 | 4,797.11 | 2,037,694.53 | 0.00 | 2,037,694.53 | 26,068.02 | 0.00 | 26,068.02 |
Unit: RMB/CNY
Subsidiary | Current Period | Last Period | ||||||
Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
Shenzhen Emmelle Industry Co., Ltd. | 1,860,173.32 | -1,634,645.53 | -1,634,645.53 | 10,404,054.32 | 3,160,952.74 | -1,203,910.71 | -1,203,910.71 | -1,652,170.89 |
Shenzhen | 132,915,435. | 2,454,072.50 | 2,454,072.50 | 6,581,755.61 | 87,064,073.7 | 2,700,330.30 | 2,700,330.30 | -18,103,601.1 |
Xinsen Jewelry Gold Supply Chain Co., Ltd. | 90 | 4 | 7 | |||||
Shenzhen Emmelle Cloud Technology Co., Ltd. | 2,956,106.52 | -41,950.77 | -41,950.77 | 92,310.32 | 952,935.51 | 11,626.51 | 11,626.51 | -117,837.47 |
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debtsNil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatementNilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
Purchase cost/disposal consideration | |
--Cash | |
--Fair value of non-cash assets | |
Purchase cost/total disposal consideration | |
Less: Subsidiary's share of net assets calculated based on the proportion of acquired/disposed equity | |
Difference |
Including: Adjust the capital reserve | |
Adjusted surplus reserve | |
Adjusted undistributed profit |
Other explanationNil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment | |
Directly | Indirectly |
Share-holding ratio or shares enjoyed different from voting right ratio:
NilBasis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
Nil
(2) Main financial information of the important joint venture
Unit: RMB/CNY
Ending balance/Current period | Opening balance/Last period | |
Current assets | ||
Including: cash and cash equivalent | ||
Non current assets | ||
Total assets | ||
Current liabilities | ||
Non current liabilities | ||
Total liabilities | ||
Minority's interest | ||
Shareholders' equity attributable to the parent company | ||
Share of net assets calculated by shareholding ratio | ||
Adjustment items | ||
--Goodwill |
--Unrealized profit of internal trading | ||
-- Other | ||
Book value of equity investment in joint venture | ||
Fair value of the equity investment of joint ventures with public offers concerned | ||
Operating income | ||
Financial expenses | ||
Income tax expenses | ||
Net profit | ||
Net profit of discontinuing operation | ||
Other comprehensive income | ||
Total comprehensive income | ||
Dividends received from joint venture in the year |
Other explanationNil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current Period | Opening balance/Last Period | |
Current assets | ||
Non current assets | ||
Total assets | ||
Current liabilities | ||
Non current liabilities | ||
Total liabilities | ||
Minority's interest | ||
Equity attributable to shareholder of parent company | ||
Share of net assets measured by shareholding | ||
Adjustment | ||
--Goodwill | ||
--Unrealized profit of internal trading |
-- Other | ||
Book value of equity investment in associated enterprise | ||
Fair value of the equity investment of associated enterprise with public offers concerned | ||
Operating income | ||
Net profit | ||
Net profit of discontinuing operation | ||
Other comprehensive income | ||
Total comprehensive income | ||
Dividends received from associated enterprise in the year |
Other explanationNil
(4) Financial summary for un-important joint venture or associated enterprise
Unit: RMB/CNY
Ending balance/Current Period | Opening balance/Last Period | |
Joint venture: | -- | -- |
Total numbers measured by share-holding ratio | -- | -- |
Associated enterprise: | -- | -- |
Total numbers measured by share-holding ratio | -- | -- |
Other explanationNil
(5) Assets transfer ability has major restriction from joint venture or associated enterpriseNil
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
Joint venture or associated enterprise | Cumulative un-confirmed losses | Un-confirmed losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-confirmed losses at period-end |
Other explanation
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterpriseNil
4. Co-runs operation
Name | Main operation place | Registered place | Business nature | Share-holding ratio/share enjoyed | |
Directly | Indirectly |
Share-holding ratio or shares enjoyed different from voting right ratio:
NilIf the co-runs entity is the separate entity, basis of the co-runs classificationNilOther explanationNil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanationNil
6. Other
Nil
X. Risk related with financial instrumentThe major financial instruments of the Company consist of monetary fund, account receivable, other account receivable, accountpayable and other account payable, etc. details of these financial instruments are disclosed in the relevant notes. Risks relating tothese financial instruments and risk management policies adopted by the Company to minimize these risks are detailed as follows.Management of the Company manages and monitors the risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk impact of operatingperformance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, theCompany has established risk management policies to identify and analyze the risks faced by the Company, set adequate riskacceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews thesepolicies and related internal control system to adapt to market development and change of operating activities of the Company. The
major risks arising from the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation ofanother party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since thebank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant creditrisk on bank deposits.As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financialposition of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and setsrelevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum ofcarrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed tocredit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash orother financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by themanagement, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Companymonitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bringshareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31 December 2021, thegearing ratio of the Company was 75.35%.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Item | Ending fair value | |||
First-order | Second-order | Third-order | Total | |
I. Sustaining measured by fair value | -- | -- | -- | -- |
II. Non-sustaining measured by fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-orderNil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-orderNil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
Parent company | Registered place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Explanation on parent company of the enterprise
The Company has no parent company so far
Ultimate controller of the Company: nilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majorityshareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Associated enterprise and joint venture
Found more in Note IX-3Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod
Joint venture or associated enterprise | Relationship with the Company |
Other explanationNil
4. Other related party
Other related party | Relationship with the Company |
Shenzhen Huahui Tongda Industrial Co., Ltd. | Supervisor of the Company Li Jialin is the legal person of the enterprise |
Shenzhen Zuanjinsen Jewelry Co., Ltd. | Subsidiary Xinsen Jewelry Shareholder |
Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last Period |
Goods sold/labor service providing
Unit: RMB/CNY
Related party | Transaction content | Current Period | Last Period |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship/contract and delegated administration/outsourcingTrusteeship/contract
Unit: RMB/CNY
Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNilDelegated administration/outsourcing
Unit: RMB/CNY
Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | Trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
As a lessee for the Company:
Unit: RMB/CNY
Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
Unit: RMB/CNY
Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
As a secured party for the Company
Unit: RMB/CNY
Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Explanation on related guaranteeNil
(5) Borrowed funds of related party
Unit: RMB/CNY
Related party | Borrowed funds | Starting date | Due date | Note |
Borrowing | ||||
Lending |
(6) Assets transfer and debt restructuring of related party
Unit: RMB/CNY
Related party | Transaction content | Current Period | Last Period |
(7) Remuneration of key manager
Unit: RMB/CNY
Item | Current Period | Last Period |
Remuneration of key manager | 1,457,847.63 | 1,600,350.50 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
Item | Related party | Ending balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision |
(2) Payable item
Unit: RMB/CNY
Item | Related party | Ending book balance | Opening book balance |
Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□Applicable √Not applicable
2. Share-based payment settled by equity
□Applicable √Not applicable
3. Share-based payment settled by cash
□Applicable √Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
NilXIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
Unit: RMB/CNY
Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
Unit: RMB/CNY
3. Sales return
4. Other events after balance sheet date
On August 4, 2020, CBC entered into the Cooperation Contract of Zhonghua Garden Phase II Urban Renewal and ReconstructionProject (hereinafter referred to as Cooperation Contract) with Shenzhen Jianzhi Industrial Development Co., Ltd (hereinafter referredto as Jianzhi Company), in order to working together to promote the urban renewal of Zhonghua Garden Phase II and solve thehistorical legacy of licensing issues. And on the date of contract, CBC received a contract payment of 10 million yuan from JianzhiCompany. On September 24, 2021, in view of the fact that during the project development process, the Standing Committee ofShenzhen People’s Congress issued and implemented the Regulations on Urban Renewal of Shenzhen Special Economic Zone onMarch 1, 2021, as a result, the residents’ willingness to renew which the project should obtain before applying for the plan todemolish and rebuild urban renewal units increased from 90% to 95%, and the company’s basis for fulfilling the CooperationContract had major changes. In order to better solve the problem of handling the property right certificates left by the residents ofZhonghua Garden Phase II, after deliberation at the first extraordinary meeting of shareholders general meeting for year of 2021,CBC decided to terminate the performance of the Cooperation Contract and no longer be a partner of the project.
On February 23, 2022, Jianzhi Company sued CBC for unilaterally terminating the Contract through a shareholders’ general meeting,demanding the CBC to refund the 10 million yuan paid and the corresponding interest of 859,000 yuan, and demanding the CBC tocompensate 20 million yuan, the Jianzhi Company has applied for property preservation, the 880000 yuan bank deposits of CBC was
frozen. As of April 18, 2022, the case has not yet been heard.
According to the Analysis of Jianzhi Company sued CBC issued by Guangdong Asia Laws Firm on March 28, 2022, the evidencesubmitted by Jianzhi Company could not support its litigation request, and the CBC had completed the conditions of the returnrevenue as agreed in the Cooperation Contract, termination of the Contract was in accordance with the legal provision. The CBCbelieves that they has completed part of the works agreed in Cooperation Contract, and should get 6 million yuan as agreed in theContract, so CBC filed a counterclaim agsinst Jianzhi Company, demanding to pay 6 million yuan for the return income of theproject, and the lawyer believes that the claim has a factual and legal basis.
In summary CBC believes that the above mentioned does not have a material impact on the financial statement for year of 2021, andno provision for the accrual liability, however, there is uncertainty about the payment of cooperation deposit in the future, so thecooperation deposit received in advance of 10 million yuan will show as other account payable.XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
Correction content | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
Unit: RMB/CNY
Item | Revenue | Expenses | Total Profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other explanationNil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
Unit: RMB/CNY
Item | Offset between segments | Total | |
(3) The Company has no reportable segments, or unable to disclose total assets and total liability forreportable segments, explain reasonsNil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with bad debt provision accrual by single basis | 21,655,872.02 | 77.75% | 4,990,682.02 | 23.05% | 16,665,190.00 | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 |
Including: | ||||||||||
Accounts receivable with a significant single amount but a separate provision for bad debts | 18,925,666.88 | 67.95% | 3,785,133.38 | 20.00% | 15,140,533.50 | |||||
Accounts with single minor amount but with bad debts provision accrued individually | 2,730,205.14 | 9.80% | 1,205,548.64 | 44.16% | 1,524,656.50 | 7,503,671.53 | 28.23% | 2,251,101.47 | 30.00% | 5,252,570.06 |
Account receivable with bad debt provision accrual by portfolio | 6,195,911.60 | 22.25% | 18,587.74 | 0.30% | 6,177,323.86 | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 |
Including: | ||||||||||
Account receivable withdrawal bad debt provision by group of credit risk characteristics (Aging analysis method) | 6,195,911.60 | 22.25% | 18,587.74 | 0.30% | 6,177,323.86 | 19,079,604.72 | 71.77% | 57,238.82 | 0.30% | 19,022,365.90 |
Total | 27,851,783.62 | 100.00% | 5,009,269.76 | 17.99% | 22,842,513.86 | 26,583,276.25 | 100.00% | 2,308,340.29 | 8.68% | 24,274,935.96 |
Bad debt provision accrual on single basis: Accounts with single significant amount but with bad debts provision accrued
individually
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Guangshui Jiaxu Energy Technology Co., Ltd. | 18,925,666.88 | 3,785,133.38 | 20.00% | The payment is overdue and there is an impairment risk |
Total | 18,925,666.88 | 3,785,133.38 | -- | -- |
Bad debt provision accrual on single basis: Accounts with single minor amount but with bad debts provision accrued individually
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Suzhou Jiaxin Economic Trade Co., Ltd. | 888,757.00 | 444,378.50 | 50.00% | Expected to be difficult to recover |
Dongguan Daxiang New Energy Co., Ltd. | 741,734.00 | 222,520.20 | 30.00% | Expected to be difficult to recover |
Suzhou Daming Vehicle Industry Co., Ltd. | 634,738.00 | 317,369.00 | 50.00% | Expected to be difficult to recover |
Guangdong Xinlingjia New Energy Co., Ltd. | 348,136.00 | 104,440.80 | 30.00% | Expected to be difficult to recover |
Tianjin Huihui Electric Vehicle Co., Ltd. | 116,840.14 | 116,840.14 | 100.00% | Expected to be difficult to recover |
Total | 2,730,205.14 | 1,205,548.64 | -- | -- |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio: Account receivable withdrawal bad debt provision by aging analysis method
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Within one year (one year included) | 5,147,965.60 | 15,443.90 | 0.30% |
1-2 years (2 years included) | 1,038,231.00 | 3,114.69 | 0.30% |
2-3 years (3 years included) | 9,715.00 | 29.15 | 0.30% |
Total | 6,195,911.60 | 18,587.74 | -- |
Explanation on portfolio basis:
The account receivable of CBC with a single significant amount are those with a single amount of 5 million yuanmore.
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within one year (one year included) | 24,190,472.62 |
Within one year (one year included) | 24,190,472.62 |
1-2 years | 2,238,918.00 |
2-3 years | 1,422,393.00 |
Over 3 years | 0.00 |
3-4 years | 0.00 |
4-5 years | 0.00 |
Over 5 years | 0.00 |
Total | 27,851,783.62 |
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for accounts receivable | 2,308,340.29 | 4,250,422.74 | 1,549,493.27 | 5,009,269.76 | ||
Total | 2,308,340.29 | 4,250,422.74 | 1,549,493.27 | 0.00 | 0.00 | 5,009,269.76 |
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
Enterprise | Amount collected or reversal | Collection way |
Total | 0.00 | -- |
Nil
(3) Account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item | Amount charge-off |
Including major account receivables charge-off:
Unit: RMB/CNY
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
Unit: RMB/CNY
Name | Ending balance of accounts receivable | Proportion of total closing balance of accounts receivable | Ending balance of bad bet provision |
Guangshui Jiaxu Energy Technology Co., Ltd. | 18,925,666.88 | 67.95% | 3,785,133.38 |
Guangshui Dongzhi New Energy Material Technology Co., Ltd. | 2,660,776.60 | 9.55% | 7,982.33 |
Hubei Teston Electronic Technology Co., Ltd. | 1,138,000.00 | 4.09% | 3,414.00 |
Licheng District Runhan Electric Vehicle Operation Department | 1,115,930.00 | 4.01% | 3,347.79 |
Jinan Yuxintai Sales Co., Ltd. | 1,025,755.00 | 3.68% | 3,077.27 |
Total | 24,866,128.48 | 89.28% | -- |
(5) Assets and liability resulted by account receivable transfer and continuous involvement
NilOther explanation:
Nil
(6) Account receivable derecognition due to transfer of financial assets
Nil
2. Other account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other account receivable | 70,451.01 | 115,263.05 |
Total | 70,451.01 | 115,263.05 |
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
2) Important overdue interest
Borrower | Ending Balance | Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or invested company) | Ending balance | Opening balance |
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or invested company) | Ending balance | Account age | Causes of failure for collection | Impairment (Y/N) and judgment basis |
Total | 0.00 | -- | -- | -- |
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
Unit: RMB/CNY
Account nature | Ending book balance | Opening book balance |
Deposit or margin | 70,963.00 | 105,713.00 |
Payment for equipment | 11,400.00 | 11,400.00 |
Reserve | 200.00 | 10,396.88 |
Total | 82,563.00 | 127,509.88 |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on January 1, 2021 | 12,246.83 | 12,246.83 | ||
January 1, 2021 balance in the current period | —— | —— | —— | —— |
Reversal in Current Period | 134.84 | 134.84 | ||
Balance on December 31, 2021 | 12,111.99 | 12,111.99 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Book balance |
Within one year (one year included) | 0.00 |
1-2 years | 70,663.00 |
Over 3 years | 11,900.00 |
3-4 years | 200.00 |
4-5 years | 11,700.00 |
Total | 82,563.00 |
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Category | Opening balance | Current changes | Ending balance | |||
Accrual | Collected or reversal | Write off | Other | |||
Bad debt provision for other receivables | 12,246.83 | 134.84 | 12,111.99 | |||
Total | 12,246.83 | 0.00 | 134.84 | 0.00 | 0.00 | 12,111.99 |
NilImportant amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
Enterprise | Amount switch-back or collection | Collection way |
Total | 0.00 | -- |
Nil
4) Other account receivables actually charge-off during the reporting period
Unit: RMB/CNY
Item | Amount charge-off |
Including major other account receivables charge-off:
Unit: RMB/CNY
Enterprise | Nature | Amount charge-off | Causes of charge-off | Procedure for charge-off | Amount cause by related transactions or not (Y/N) |
Total | -- | 0.00 | -- | -- | -- |
Other Explanation on account receivable charge-offNil
5) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Enterprise | Nature | Ending Balance | Account age | Proportion in total other account receivables at period-end | Ending balance of bad debt provision |
Shenye Pengji (Group) Co., Ltd. | Deposit or margin | 60,222.00 | 1-2 years | 72.94% | 180.67 |
Shenzhen Hongkang Instrument Technology Co., Ltd. | Payment for equipment | 11,400.00 | Over 5 years | 13.81% | 11,400.00 |
Shenzhen Pengji Property Management Service Co., Ltd. | Deposit or margin | 10,441.00 | 1-2 years | 12.65% | 31.32 |
Shenzhen Color Life Property Management Co., Ltd. Lianxin Home Branch | Deposit or margin | 300.00 | Over 5 years | 0.36% | 300.00 |
Nongfu Spring Deposit | Deposit or margin | 200.00 | 4-5 years | 0.24% | 200.00 |
Total | -- | 82,563.00 | -- | 100.00% | 12,111.99 |
6) Account receivable with government grants involved
Unit: RMB/CNY
Enterprise | Government grants | Ending Balance | Ending account age | Time, amount and basis of amount collection estimated |
Nil
7) Other account receivable derecognition due to financial assets transferNil
8) Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
3. Long-term equity investment
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment for subsidiary | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 |
Total | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 | 21,350,000.00 | 1,389,620.27 | 19,960,379.73 |
(1) Investment for subsidiary
Unit: RMB/CNY
The invested entity | Opening Balance (Book value) | Changes in the period (+, -) | Ending Balance (Book value) | Ending balance of impairment provision | |||
Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
Shenzhen Emmelle Industry Co., Ltd. | 10,379.73 | 10,379.73 | 1,389,620.27 | ||||
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. | 19,950,000.00 | 19,950,000.00 | |||||
Total | 19,960,379.73 | 0.00 | 0.00 | 0.00 | 0.00 | 19,960,379.73 | 1,389,620.27 |
(2) Investment for associates and joint venture
Unit: RMB/CNY
Funded enterprise | Opening Balance (Book value) | Changes in the period (+, -) | Ending Balance (Book value) | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
II. Associated enterprise |
Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Other explanation
Nil
4. Operation revenue and operation cost
Unit: RMB/CNY
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 23,505,830.29 | 23,100,454.32 | 20,057,964.04 | 19,427,326.43 |
Other business | 4,693,393.21 | 1,232,802.37 | 8,821,133.12 | 2,273,363.81 |
Total | 28,199,223.50 | 24,333,256.69 | 28,879,097.16 | 21,700,690.24 |
Revenue:
Unit: RMB/CNY
Contract type | 1# Division | 2# Division | Total | |
Product type | 28,199,223.50 | 28,199,223.50 | ||
Including: | ||||
Bicycle lithium battery materials and other | 28,199,223.50 | 28,199,223.50 | ||
Classification by business area | ||||
Including: | ||||
Market or customer type | ||||
Including: | ||||
Contract type | ||||
Including: | ||||
Classification by time of goods transfer | ||||
Including: | ||||
Classification by contract |
duration | ||||
Including: | ||||
Classification by sales channel | ||||
Including: | ||||
Total | 28,199,223.50 | 28,199,223.50 |
Information relating to performance obligation:
NilInformation relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognizedin YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.Other explanation:
Nil
5. Investment income
Unit: RMB/CNY
Item | Current Period | Last Period |
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
Unit: RMB/CNY
Item | Amount | Note |
Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 397,876.20 |
Switch-back of provision of impairment of account receivable and contract assets which are treated with separate depreciation test | 1,881,334.27 | |
Other non-operating income and expenditure except for the aforementioned items | 376,450.05 | |
Less: Impact on income tax | 18.42 | |
Impact on minority shareholders’ equity | 93,462.09 | |
Total | 2,562,180.01 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
2. ROE and EPS
Profits during report period | Weighted average ROE | Earnings per share | |
Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | -20.04% | -0.0036 | -0.0036 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -42.37% | -0.0076 | -0.0076 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the differenceadjustment for data audited by foreign auditing organ, noted the name of such foreign organNil
4. Other
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
22 April 2022