深圳市特力(集团)股份有限公司 2019 年半年度报告全文
深圳市特力(集团)股份有限公司
SHENZHEN TELLUS HOLDING CO., LTD.
Semi-Annual Report 2019
August 2019
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen Tellus
Holding Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Fu Chunlong, Principal of the Company, Lou Hong, person in charge of
accounting works and Liu Yuhong, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of Semi-Annual
Report 2019 is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
Securities Times, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) are the media for information disclosure appointed by the
Company, all information under the name of the Company disclosed on the
above said media shall prevail. Concerning the forward-looking statements with
future planning involved in the Report, they do not constitute a substantial
commitment for investors, and investors are advised to exercise caution of
investment risks.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Contents
Section I. Important Notice, Contents and Paraphrase ............................................................................... 2
Section II. Company Profile and Main Financial Indexes ........................................................................... 5
Section III. Summary of Company Business................................................................................................. 8
Section IV. Discussion and Analysis of the Operation ................................................................................ 12
Section V. Important Events ......................................................................................................................... 24
Section VI. Changes in Shares and Particulars about Shareholders ........................................................ 35
Section VII. Preferred Stock ......................................................................................................................... 40
Section VIII. Directors, Supervisors and Senior Executives...................................................................... 41
Section IX. Corporate Bond ......................................................................................................................... 42
Section X. Financial Report .......................................................................................................................... 43
Section XI. Documents Available for Reference........................................................................................ 200
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Paraphrase
Items Refers to Contents
CSRC Refers to China Securities Regulatory Commission
SZ Exchange Refers to Shenzhen Stock Exchange
Shenzhen Branch of China Securities Depository & Clearing
Shenzhen Branch of SD&C Refers to
Corporation Limited
Company, the Company, our Company, Tellus
Refers to Shenzhen Tellus Holding Co., Ltd.
Group
Reporting period, this reporting period, The
Refers to January to June of 2019
Year
Auto Industry and Trade Co., Refers to Shenzhen Auto Industry and Trade Corporation
Zhongtian Company Refers to Shenzhen Zhongtian Industrial Co., Ltd.
Shenzhen Huari Toyota Auto Sales Co., Ltd.; Shenzhen SDG Huari Auto
Huari Company Refers to
Enterprise Co., Ltd.
Huari Toyota Refers to Shenzhen Huari Toyota Motor Sales Co., Ltd.
Zung Fu Tellus Refers to Shenzhen Zung Fu Tellus Auto Service Co., Ltd.
Dongfeng Company Refers to Shenzhen Dongfeng Automobile Co., Ltd.
Tellus Starlight Refers to Anhui Tellus Starlight Jewelry Investment Co., Ltd.
Tellus Starlight Jinzun Refers to Anhui Tellus Starlight Jinzun Jewelry Co., Ltd.
Sichuan Channel Platform Company, Sichuan
Refers to Sichuan Tellus Jewelry Tech. Co., Ltd.
Jewelry Company
Xinglong Company Refers to Shenzhen Xinglong Machinery Mould Co., Ltd.
SDG Refers to Shenzhen Special Development Group Co., Ltd.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Tellus-A, Tellus-B Stock code 000025, 200025
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳市特力(集团)股份有限公司
Chinese)
Short form of the Company
特力 A
(in Chinese)
Foreign name of the Company
Shenzhen Tellus Holding Co., Ltd
(if applicable)
Legal representative Fu Chunlong
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Qi Peng Sun Bolun
15/F, CNNC Building, Shennan Middle 15/F, CNNC Building, Shennan Middle
Contact add.
Road, Futian District, Shenzhen Road, Futian District, Shenzhen
Tel. （0755）83989378 （0755）83989339
Fax. （0755）83989386 （0755）83989386
E-mail ir@tellus.cn sunbl@tellus.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2018.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2018
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Current period Same period of last year Changes over last year
Operating income (RMB) 278,268,739.33 197,955,081.73 40.57%
Net profit attributable to shareholders of
44,779,948.60 26,920,279.86 66.34%
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting 40,593,359.72 22,098,655.68 83.69%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
27,434,059.30 -28,070,468.11
activities (RMB)
Basic earnings per share (RMB/Share) 0.1039 0.0906 14.68%
Diluted earnings per share (RMB/Share) 0.1039 0.0906 14.68%
Weighted average ROE 4.17% 2.76% 1.41%
Changes over period-end of
Period-end Period-end of last year
last year
Total assets (RMB) 1,711,571,788.47 1,658,295,531.00 3.21%
Net assets attributable to shareholder of
1,094,989,485.95 1,050,209,537.35 4.26%
listed Company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
103,159.68 Income from disposal fixed assets
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
6,611.29 VAT input tax deduction
national standards, which are closely relevant to enterprise‘s
business)
Capital occupancy expense, collected from non-financial Capital occupation fee of
37,708.32
enterprises and recorded in current gains and losses joint-stock enterprise
Except for effective hedge business relevant to normal operation
of the Company, gains and losses arising from fair value change
of tradable financial assets and tradable financial liabilities, and 5,935,926.39 Income from financing products
investment income from disposal of tradable financial assets,
tradable financial liabilities and financial assets available for sale
Restoring of receivable impairment provision that tested
307,993.15 Restoring of bad debt provision
individually
The liquidated damages paid for
Other non-operating income and expenditure except for the
-713,774.56 early termination of lease from
aforementioned items
Tellus Starlight Jinzun Company
Less: Impact on income tax 1,436,258.10
Impact on minority shareholders‘ equity (post-tax) 54,777.29
Total 4,186,588.88 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of the special industry
No
The main business of the Company during the reporting period was auto sales, auto testing, maintenance and
accessories sales; resource assets management; jewelry service industry.
1. Auto sales, auto testing, maintenance and accessories sales: In the first half of 2019, the auto sales industry
continued to be affected by the high inventory, the profit promotion and the intensifying competition, the
profitability of the industry declined on a year-on-year basis, and the automotive aftermarket faced greater
downward pressure. During the reporting period, under the unfavorable situation of the market environment, by
implementing performance evaluation mechanism based on goal attainment and incremental reward and carrying
out a variety of innovative marketing methods, the company achieved auto sales income of 79.25 million Yuan, an
increase of 28.62% compared with the same period of last year, and realized sales revenue of 24.16 million Yuan
from automobile inspection and maintenance and accessories sales, an increase of 10.03% over the same period of
last year.
2. Resource assets management: In 2019, affected by unfavorable factors such as slowing economic growth at
home and abroad and complicated economic situation, a large number of enterprises have contracted in size, and
the demand for property leasing was reduced. At the same time, with the newly developed properties in Shuibei
District being put into use, the property leasing market in the district has a situation of oversupply, and the feeble
market demand for the property leasing has caused us to face an increase in the vacancy rate of resource assets
and the downside of leasing prices. During the reporting period, in response to the decline in market demand, the
company improved customer satisfaction by strengthening communication and exchanges with tenants and
feedback on tenants' opinions, reduced vacancy rate and improved overall property, especially the occupancy rate
of the new project Shuibei Jewelry Building, by increasing marketing efforts and advertising; and through
re-planning and modifying some old properties to enhance their image and value, the company made full use of
the advantages of the industry cluster, and explored the new layout of the company's business. During the
reporting period, property leasing and services achieved 7,368 million Yuan with 89.70% up on a y-o-y basis.
3. Jewelry service industry: In the first half of 2019, China's GDP growth rate slowed for two consecutive quarters,
and the downward pressure on the economy was huge. As an industry with large consumption elasticity, the
jewellery industry was greatly affected by the economic downturn. Jewelry merchants are more cautious in setting
up shop or expanding stores due to the decrease in purchasing quantity and slow capital flow, and the industry
continued to make deep adjustments. In the middle and lower reaches of jewelry, Sichuan, as an active area of
national jewelry, has taken the lead in adjusting. During the reporting period, in the face of the continuous
downward trend of the industry, on the one hand, in order to reduce the operational risk, our company temporarily
suspended the operation of the retail platform project Tellus Xingguang Jinzun Company; on the other hand, our
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
company continuously improved the risk control system of the Sichuan channel platform company, strengthened
data analysis capabilities, and used data to control risks and stabilize business revenues; at the same time, the
company explored in depth the extension of jewelry third-party integrated services, explored innovative business
models in practice, and expanded industry influence. During the reporting period, wholesale and retail of the
jewelry business have revenue of 97.1 million Yuan with 35.27% up on a y-o-y basis.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Book value of long-term equity investment up to 30 June 2019 amounting to
153,819,700 Yuan, decreased 70,825,000 Yuan over that of period beginning with
Equity assets
31.53% down, mainly due to the profit bonus from shareholding enterprise Dongfeng
Company.
Fixed assets No major change
Intangible assets No major change
Book value of the construction in progress till end of 30 June 2019 amounting to
Construction in progress 22,707,200 Yuan, an increase of 9,863,600 Yuan from a year earlier with 76.8% up.
Mainly due to the pre-phase investment for Phase II of Jewelry Building
Book value of account receivable till end of 30 June 2019 amounting to 113,548,300
Yuan, an increase of 27,440,000 Yuan over that of period-begin with 31.87% up, mainly
Account receivable
because the wholesale credit for jewelry from Sichuan Jewelry Company increased in the
period
Book value of advance payment till end of 30 June 2019 amounting to 12,493,200 Yuan,
Advance payment an increase of 3,380,000 Yuan over that of period-begin with 37.10% up, mainly due to
the car payment paid in advance to FAW-Toyota from Huari Toyota increased.
Book value of dividends receivable till end of 30 June 2019 amounting to 81,600,500
Dividends receivable Yuan, an increase of 81,367,900 Yuan over that of period-begin, mainly due to the profit
bonus from shareholding enterprise Dongfeng Company and Zung Fu Tellus.
Book value of other current assets till end of 30 June 2019 amounting to 42,208,700
Other current assets Yuan, a decrease of 290,223,700 Yuan from a year earlier with 87.3% down, mainly
because the financial products are re-classified and redemption on maturity.
2. Main overseas assets
□ Applicable √ Not applicable
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
III. Core Competitiveness Analysis
Does the Company need to comply with the disclosure requirements of the special industry
No
1. Mastering the real estate resources of the core gathering place of the jewelry industry, and stable in
business income
The output value of Shenzhen jewelry accounts for more than 70% of the national jewelry industry, and
Shuibei-Buxin area is the core gathering area of jewelry industry in Shenzhen, its output value accounts for more
than 70% of the jewelry industry in Shenzhen. We have formed the largest cluster of gold jewelry enterprises in
the country, covering the entire industry chain including raw material procurement, production and processing,
and wholesale sales, and the economic and strategic position and the core aggregation effects of this area in
jewelry industry have remained stable for many years.
According to the ―13th Five-Year‖ plan for urban renewal in Luohu District, Shenzhen, Shuibei-Buxin area will be
built into the jewelry fashion industrial zone of Luohu District, Shuibei area is the international jewelry art center
and Buxin area is the jewelry intelligent high-end manufacturing center so as to form the Shuibei-Buxin
international jewelry eco-creative area. The company is the largest owner of the Tellus Jimeng Gold Jewelry
Industrial Park in Shuibei area, Tellus Shuibei Jewelry Building phase I has been put into use, and phase II
construction project has been launched. At the same time, as the largest owner of land parcels 04 & 05 in the
urban renewal unit planning project of Buxin industrial zone, the company will plan and construct an innovative
industrial project in line with the city, district and the Company‘s overall strategic layout in Buxin area through
the renovation method. The company will maintain the status of the largest owner of Shuibei and Buxin areas, and
master the physical platform resource advantages of the core area of the jewelry industry. Meanwhile, the
Company grasps a large number of property resources in various districts in Shenzhen which can bring stable
business income and cash flow to the company and provide a solid foundation for the company‘s transformation
and development through the resource assets business such as property leasing.
2. Plough into the jewelry industry through resource advantages, and gradually expand the industry
influence.
In recent years, with the slowdown in the growth of jewelry industry, the uncertainties in the development of the
industry have increased, a large number of jewelry companies have shrunk their businesses, and the industry
continues to show the characteristics of bottom shocks. At the same time, under the continuous influence of
financial policies such as de-leveraging and financial risks prevention, the financial services with internet color
are greatly restricted, as a result, the entire jewelry industry continues to face financing difficulties, and some
radical industry leading enterprises are even caught in debt crisis, the actual controllers have changed and the
industry development has been affected. Under this circumstance, as a state-owned enterprise and a listed
company, the company has good credit qualification and credit endorsement ability, and has low-cost and
multi-channel capital sources, therefore, its special identity advantage in jewelry industry also becomes more
prominent, which provide advantages for the company to plough into the supply chain services of jewelry industry
that the privately operated jewelry companies can‘t obtain.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
The company takes the third-party integrated operation service provider of the jewelry industry as the strategic
blueprint, does not participate in the specific product management of jewelry, does not compete for the stock
market business, but plans to serve the vast number of jewelry enterprises through innovative business models to
energize the development of industry. After years of efforts to transform into the jewelry industry, the company
has formed a closer strategic partnership with a number of leading jewelry industry companies across the country,
the jointly invested and established jewelry innovation platform project has been put into operation and achieved
good results. The development strategy and corporate vision of the company are also highly recognized and
supported by the industry, its influence in the jewelry industry is also continuously being expanded.
The company will continue to give play to its own comprehensive resource advantages, unite the upstream and
downstream of the jewelry industry chain, integrate the industry demand, improve the industry‘s traditional model,
provide more comprehensive innovative services, solve the industry pain points, and promote the healthy
development of the industry and achieve all-win while realizing its social responsibility and returning to the
company‘s shareholders.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section IV. Discussion and Analysis of the Operation
I. Introduction
In the first half of 2019, the world economy was in a downturn, the OECD released the economic outlook for the
first half of 2019, it is expected that tariffs and uncertainties in trade will affect China's economic growth. In the
first quarter, China's GDP actually increased by 6.4%, which was lower than the same period of last year, the
GDP growth rate is 6.2% in the second quarter, the Chinese economy is still at the bottom stage. Affected by the
sluggish domestic economic environment, the automobile terminal retail market in 2018 showed its first decline in
28 years, in the first half of 2019, the production and sales volume decreased compared with the same period of
last year, the auto aftermarket faced a large downward pressure. The development trends of jewelry industry
showed great uncertainty, jewelers are holding a wait-and-see attitude towards industry development in 2019, the
industry is still in a downturn, SMEs are closed or changed the profession, the jewelry industry is undergoing
in-depth adjustment, the quantity demanded by commercial stores, office space, etc. is also correspondingly
reduced, the regional channel platform for the jewelry operated by our company and the resource-based asset
leasing are under great pressure.
In the face of the complicated economic situation in the first half of the year, Tellus Group has sailed in the head
tide, guided by the strugglers, fully motivated the employees and activated the kinetic energy of the enterprise;
intensively carried out all the key tasks, tapped the potential of old properties, and continued to lay out new
projects in the jewelry market, meanwhile, strictly maintained the bottom line of risk control to ensure that the
economic indicators of our company in the first half of the year exceeded the same period last year.
In the reporting period, the Company achieved operating income of 278.2687 million Yuan, an increase of
80.3136 million Yuan or 40.57% compared with 197.9551 million Yuan in the same period of last year; growth of
the income mainly due to the operation revenue from Phase I of Jewelry Building and income of jewelry
wholesale from Sichuan Jewelry Company. The total profit was 51.0208 million Yuan, an increase of 22.5665
million Yuan compared with 28.4543 million Yuan in same period of last year, net profit attributable to the parent
Company was 44.7799 million Yuan, an increase of 17.8596 million Yuan or 66.37% compared with 26.9203
million Yuan in the same period of last year.
II. Main business analysis
See the ―I-Introduction‖ in ―Discussion and Analysis of the Operation‖
Change of main financial data on a y-o-y basis
In RMB
Current period Same period of last year y-o-y changes (+,-) Reasons
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
The operation revenue from
Phase I of Jewelry Building
Operation revenue 278,268,739.33 197,955,081.73 40.57% and income of jewelry
wholesale from Sichuan
Jewelry Company
Operation costs increased for
Operation costs 210,494,012.42 153,739,952.11 36.92%
the increase of income
Operation expenses invested
Sales expense 9,358,514.29 8,337,907.27 12.24% for the phase I of Jewelry
Building increased
Remuneration declined for
Management expense 16,878,629.26 19,137,092.41 -11.80% the decrease of employees,
and routine expenses controls
The interest expenses goes
up due to the growth of bank
loans on a y-o-y basis, and
the financial expenses
increase for the termination
Financial expense 3,757,775.76 2,771,872.61 35.57%
of capitalization from loan
interest due to the completion
of phase I of Jewelry
Building that transfer to fixed
assets
Operation profit from
Income tax expense 6,038,256.76 1,887,473.77 219.91% subordinate companies
increased
Operation revenue from
phase I of Jewelry Building
Net cash flow arising increased and returned
27,434,059.30 -28,070,468.11
from operation activities money for sales increased
from a year earlier by
Sichuan Jewelry Company
Purchasing more financial
products in the period and
Net cash flow arising
the cash out-flow increased
from investment 54,510,161.97 128,447,077.73 -57.56%
due to the pre-phase
activities
investment for phase II of
Jewelry Building
Cash out-flow increased for
Net cash flow arising
-25,551,300.64 15,386,557.76 paying back the project loan
from financing activities
by Zhongtian Company
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Net increase of cash and
56,392,930.47 115,763,237.91 -51.29%
cash equivalent
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Auto sales 79,247,600.74 77,917,559.91 1.68% 28.62% 29.57% -0.72%
Auto inspection
and maintenance
24,156,408.72 19,523,657.18 19.18% 10.03% 9.52% 0.37%
and accessories
sales
Property rental
73,678,150.26 20,704,859.80 71.90% 89.70% 218.49% -11.36%
and service
Wholesale and
97,100,722.64 91,148,345.86 6.13% 35.27% 33.51% 1.24%
retail of jewelry
According to products
Auto sales 79,247,600.74 77,917,559.91 1.68% 28.62% 29.57% -0.72%
Auto inspection
and maintenance
24,156,408.72 19,523,657.18 19.18% 10.03% 9.52% 0.37%
and accessories
sales
Property rental
73,678,150.26 20,704,859.80 71.90% 89.70% 218.49% -11.36%
and service
Wholesale and
97,100,722.64 91,148,345.86 6.13% 35.27% 33.51% 1.24%
retail of jewelry
According to region
Shenzhen 177,082,159.72 118,146,076.89 33.28% 44.67% 39.88% 2.28%
Anhui 4,521,763.87 4,235,654.11 6.33% -23.21% -31.84% 11.86%
Sichuan 92,578,958.77 86,912,691.75 6.12% 40.49% 40.05% 0.30%
III. Analysis of non-main business
√Applicable □ Not applicable
In RMB
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Amount Ratio in total profit Note Whether be sustainable
Investment income of
shareholding enterprise are
Investment income 16,711,450.93 32.75% accrual in the period and No
achieved the financing
income in the year
Non-operation
119,625.44 0.23% No
revenue
The liquidated damages paid
Non-operation for early termination of lease
833,400.00 1.63% No
expenditure from Tellus Starlight Jinzun
Company
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end of last year
Ratio in Ratio in total Ratio changes Notes of major changes
Amount Amount
total assets assets
Purchasing financial products
Monetary fund 225,905,191.16 13.20% 277,556,456.47 18.77% -5.57% and Zhongtian Company pay
back the project loan
Receivable from the wholesale of
Account
113,548,299.77 6.63% 81,270,957.00 5.50% 1.13% jewelry from Sichuan Jewelry
receivable
Company increased
Inventory 16,798,362.97 0.98% 5,858,705.33 0.40% 0.58%
Transfer-in from phase I of
Investment real
494,163,460.21 28.87% 70,972,017.37 4.80% 24.07% Jewelry Building for project
estate
completion
the balance of long-term equity
Long-term equity investment for Xinglong
153,819,742.68 8.99% 244,379,388.10 16.53% -7.54%
investment Company are classified to assets
held-for-sale.
Fix assets 109,620,846.65 6.40% 116,927,224.82 7.91% -1.51%
Transfer-out for the completion
Construction in
22,707,214.36 1.33% 388,384,816.21 26.27% -24.94% of phase I of Jewelry Building
process
for project
Short-term loans 143,000,000.00 8.35% 143,000,000.00 9.67% -1.32%
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Zhongtian Company pay back
Long-term loans 34,934,887.55 2.36% -2.36%
the project loan
It is mainly caused by profit
Dividend distribution of shareholding
81,600,548.07 4.77% 52,732,683.74 3.57% 1.20%
receivable enterprise Dongfeng Company
and Zung Fu Tellus
the balance of long-term equity
Assets held for investment for Xinglong
85,017,251.77 4.97% 4.97%
sale Company are classified to assets
held-for-sale.
Other current Reclassification of financial
42,208,745.54 2.47% 122,022,053.76 8.25% -5.78%
assets products
The equity transfer amount from
Other account
271,599,091.34 15.87% 182,185,901.15 12.32% 3.55% Xinglong Company stay in the
payable
account
2. Assets and liability measured by fair value
√ Applicable □Not applicable
In RMB
Changes of fair Accumulative
Amount at the Devaluation of Amount of
value changes of fair Amount of sale Amount in the
Items beginning withdrawing in purchase in the
gains/losses in value reckoned in the period end of period
period the period period
this period into equity
Financial assets
1. Tradable
financial assets
(excluding
derivative
financial
assets)
2. Derivative
financial assets
3. Other
creditor's rights
investment
4. Other equity
instruments 10,176,617.20 10,176,617.20
Investment
Subtotal of
financial assets
16
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Investment
Real Estate
Productive
biological
assets
Other
Above total 10,176,617.20 10,176,617.20
Financial
liabilities
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. Right of the assets restrained till end of the Period
Item Book value at period-end Restriction reasons
Monetary fund 26,664,140.00 （1）
Long-term equity investment 27,063,722.06 （2）
Assets held for sale 85,017,251.77 （3）
Total 138,745,113.83
(1) End of 30 June 2019, the Company‘s right to use of currency funds under restrictions is 26,664,140.00 Yuan, which is the
supervision fund paid by the Company to Luohu District Urban Renewal Bureau of Shenzhen for the land plot 03 project of the
upgrading project of Tellus-Jimeng Gold Jewelry Industrial Park. The currency funds with restricted use rights at the end of last year
were 26,664,140.00 Yuan.
(2) The Company signed a Pledge Contract with Zung Fu Automobile Management (Shenzhen) Co., Ltd. (hereinafter referred to as
―Zung Fu Shenzhen‖) which agreed that from the establishment of the Company‘s joint venture Shenzhen Zung Fu Tellus Auto
Service Co., Ltd. (hereinafter referred to as ―Zung Fu Tellus‖) to the expiration date of the joint venture contract between the
Company and Zung Fu Shenzhen, Zung Fu Shenzhen provided loans to Zung Fu Tellus by entrusted loan, and Zung Fu Tellus asked
for loans to banks or other financial enterprises and Zung Fu Shenzhen provided guarantee for it, if the total amount of above loans
was no more than RMB 100 million, Zung Fu Shenzhen would undertake 35% of the liabilities caused by above loans according to
the equity ratio, and agree the Company to pledge its 35% equity stake of Zung Fu Tellus to Zung Fu Shenzhen as the corresponding
counter guarantee of above loans.
(3) Shenzhen Xinglong Machinery Mould Co., Ltd. (hereinafter referred to as ―Xinglong Company‖) is a shareholding subsidiary of
the Company, the Company holds a 43% equity interest in Xinglong Company. In order to build the Xinglong Gold Jewelry Building
Project, Xinglong Company signed a fixed asset loan contract with China Construction Bank Co., Ltd. Shenzhen Branch (hereinafter
referred to as ―China Construction Bank‖) with a loan amount of 280 million Yuan, and Xinglong Company used the land certificate
of Xinglong Gold Jewelry Building (Land Parcel No.H309-0024(1)) as the collateral. Now Xinglong Company intends to apply to
China Construction Bank for the cancellation of the land certificate mortgage for the real estate license of Xinglong Gold Jewelry
Building. During the period of handling the real estate license, each shareholder of Xinglong Company pledges the equity of
17
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Xinglong Company to China Construction Bank at the same time so as to provide temporary pledge guarantees for the loans of
Xinglong Company.
V. Investment
1. Overall situation
□Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□Applicable √ Not applicable
4. Financial assets 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
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
√Applicable □ Not applicable
Net The Ratio of Equity Whether
Whether
Trading profit influenc the net Relation have implem
to be a
price (in contribu e of profit Pricing ship ownersh ented as Disclos
Counter Equity Date on related Disclos
10 ted by equity contribu principl with the ip schedul ure
party on sale sale transacti ure date
thousan the sales to ted by e counter transfer ed, index
on
d Yuan) equity the equity party complet explain
(Y/N)
to listed Compan sales in ed reasons
18
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Compan y total net (Y/N) and
y (from profit counter
period-b measure
egin to if not
date on
sale) (in
10
thousan
d Yuan)
Accordi
ng to
the
Assets
Apprais
al
Report
[Guo
Zhong
Lian
Apprais Notice
al Zi No:
(2017) 2019-02
The
43% No. 8 on
project
equity 3-0083 Securiti
Shenzhe has
of issued es
n Runhe impact
Shenzhe by Guo Times,
United on total
n ZHong Complet Hong
Investm profit
Xinglon 2018-06 Lian ed as 2019-08 Kong
ent 28,667 0 approxi 0 N N/A N
g -15 Assets schedul -16 Comme
Develop mately
Machin Apprais e rcial
ment amounte
ery al Land Daily
Co., d as
Mould and and
Ltd. 201.88
Co., Real Juchao
million
Ltd. Estate Website
Yuan
Apprais (www.c
al Co., ninfo.co
Ltd., m.cn)
who has
the
qualific
ation for
perform
ing
related
business
of
securitie
19
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
s and
futures,
the
assessm
ent
based
on
asset-ba
sed
approac
h and
income
approac
h.
VII. Analysis of main Holding Company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operating Operating
Type Total assets Net Assets Net profit
name business capital revenue profit
Shenzhen
Auto Sales of auto
RMB 58.96 373,682,554. 335,498,706. 7,553,714.
Industry and Subsidiary and 9,834,562.71 6,210,947.73
million 16 95 56
Trade accessories
Corporation
Auto
Shenzhen SD
maintenance
Huari
and US$ 5 72,126,697.6 27,285,718.9 18,957,565.7
Automobile Subsidiary -60,107.09 -58,474.42
production million 2 2 1
Enterprise
and sales of
Co. Limited
accessories
Shenzhen
RMB
Zhongtian Property 584,492,954. 384,377,129. 35,422,741.9 18,439,885
Subsidiary 366.2219 16,981,103.48
Industrial rental 75 77 7 .43
million
Co,. Ltd.
Shenzhen
Huari Toyota Automobile RMB 2 65,181,941.8 106,372,651.
Subsidiary 2,229,865.18 70,439.41 133,522.54
Automobile Sales million 3 09
Sales Co. Ltd
Shenzhen Subsidiary Manufacture RMB 19.61 11,676,169.5 6,381,025.45 2,701,908.75 878,287.14 662,252.14
20
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Xinyongtong of inspection million 0
Auto Vehicle equipment
Inspection for motor
Equipment vehicle
Co., Ltd.
Shenzhen
Tellus Inspection
Xinyongtong and repair of RMB 32.9 79,414,951.7 59,760,917.0 4,308,155.
Subsidiary 6,778,863.89 3,371,504.44
Automobile motor million 7 4 62
Development vehicle
Co. Ltd
Anhui Tellus
Starlight
RMB 9.8 -1,235,192.
Jewelry Subsidiary Jewelry sales 7,434,783.29 2,623,944.15 4,521,763.87 -2,068,492.61
million 61
Investment
Co., Ltd.
Sichuan
Tellus RMB 150 161,218,305. 159,311,630. 92,578,958.7 5,136,267.
Subsidiary Jewelry sales 3,852,200.31
Jewelry Tech. million 40 21 7 08
Co., Ltd.
Shenzhen
Zung Fu
Joint stock Car sales and RMB 30 296,665,961. 77,324,919.2 568,266,810. 16,114,756
Tellus Auto 12,457,996.18
Company maintenance million 00 9 59 .42
Service Co.,
Ltd.
Manufacture
Shenzhen
and
Dongfeng Joint stock RMB 100 722,888,245. 159,371,976. 219,400,462. 9,228,674.
maintenance 10,121,106.72
Automobile Company million 07 57 98 91
of
Co., Ltd.
automobile
Investment
Shenzhen
industrial, RMB
Tellus Gman Joint stock 398,256,796. 131,382,412. 41,866,318.3 8,986,012.
property 123.70496 7,304,384.91
Investment Company 48 10 4 20
management million
Co., Ltd.
and rental
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Notes of holding and shareholding companies
Nil
21
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
VIII. Structured vehicle controlled by the Company
□Applicable √ Not applicable
IX. Prediction of business performance from January – September 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□Applicable √ Not applicable
X. Risks and countermeasures
In the process of strategic transformation and project operation, we will objectively and clearly recognize the
possible risks and take active and effective measures to prevent them:
1. Risks caused by fluctuations in the macroeconomic situation
In 2019, affected by the international environmental factors such as Sino-US trade disputes, instability of
exchange rate, and the domestic monetary policy transforming from relatively loose to stable, China's economy
entered a speed-shift period, and GDP growth entered a new normal phase of stable growth, the domestic
economy is still facing the risks of slowdown in growth and increasing industrial restructuring pressure, which has
an uncertain impact on the overall economic environment and the company‘s operating results.
In response to this risk, the company will actively adopt various preventive measures. First, continue to strengthen
management, increase inner power, improve efficiency through scientific management, tap potential and increase
revenue, and comprehensively improve the profitability of the original business; second, firmly promote the pace
of strategic transformation of the company, promote the landing of the transformation project through innovative
business models, open up the incremental market, expand the scale of business, find new profit growth points, and
provide a good foundation for the company's long-term stable development.
2. Risks brought by transforming to new fields
In recent years, the company has fully promoted the strategic goal of transforming into a third-party integrated
operation service provider in the jewelry industry, and many transformation projects have been implemented and
achieved good results. However, in the process of deeply cutting into the jewelry industry, the company has
become more and more aware of the difficulties and risks that will be faced in the transition to a new business
area. Whether we can realize the innovative integration of the traditional characteristics of jewelry industry and
the new technology and new model, how to meet the ever-changing individualized and diversified needs of
emerging consumer groups, and how to make a path of innovative development in the industry environment with
more fierce competition in market segment, these are all new challenges that the company needs to solve urgently
and put forward higher requirements for the company's resource integration capabilities, project management
capabilities and professional talent reserves in the transformation of business layout.
In response to this risk, on the one hand, the company will continue to strengthen the transformation conviction, in
accordance with the established overall development strategy and business strategy, fully demonstrate, prudently
22
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
make decisions, carry out fine management, make market-oriented operation, ensure that transformation projects
achieve good investment returns, and actively respond to market competition; on the other hand, the company will
steadily promote reform and innovation, and with the opportunity to complete the ―Double Hundred Actions‖,
explore and improve the company's long-term incentive mechanism, mobilize the enthusiasm of all employees,
improve the management level and operational efficiency of the enterprise, and effectively enhance the core
competitiveness of the enterprise.
23
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Participation ratio
Meeting Type Holding date Disclosure date Index
for investors
Notice No.:
2019-001 on
Securities Times,
First Extraordinary Extraordinary
Hong Kong
Shareholders Shareholders 70.99% 2019-01-14 2019-01-15
Commercial Daily
Meeting of 2019 Meeting
and Juchao Website
(www.cninfo.com.cn
)
Notice No.:
2019-018 on
Securities Times,
Annual General Hong Kong
AGM 69.99% 2019-04-23 2019-04-24
Meetin2018 Commercial Daily
and Juchao Website
(www.cninfo.com.cn
)
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
III. Commitments that actual controller, shareholder, related parties, buyer and committed
party as the Company etc. have fulfilled during the reporting period and have not yet fulfilled
by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the actual controller, shareholder, related parties, buyer and committed party as the Company etc.
24
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reporting
Other lawsuits
√Applicable □ Not applicable
See the financial statements notes ―X-Commitments and Contingencies‖
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
X. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had good reputation, and
there is no large amount due un-liquidated debt sentenced by the court.
25
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Whether
Trading
Related over the
Content transacti Proporti limit Clearing Availabl Index
Type of approve Date of
of Pricing Related on on in approve form for e similar of
Related Relation related
related principl transacti amount similar d related disclosu
party ship transacti
transacti e on price (in 10 transacti d (in 10 transacti market disclos
on limited re
on thousan ons (%) thousan on price ure
d Yuan) or not
d Yuan)
(Y/N)
Notice
No.:
2019-0
11 on
Securit
ies
Shenzhe Director Times,
n Zung /Supervi Hong
By
Fu sor/ SE Routine Providin Referen Kong
contract
Tellus serves related g ce to 2019-04 Comm
265 265 3.60% 530 N or 265
Auto director transacti property market -02 ercial
agreeme
Service of the ons leasing price Daily
nt
Co., Compan and
Ltd. y Juchao
Websit
e
(www.
cninfo.
com.c
n)
Shenzhe Subsidia Notice
Routine Providin Referen By
n SD ry of the No.:
related g ce to 0.0048 contract 2019-04
Tellus controlli 1.33 1.33 10 N 1.33 2019-0
transacti property market % or -02
Property ng 11 on
ons leasing price agreeme
Manage sharehol Securit
26
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
ment der nt ies
Co., Times,
Ltd. Hong
Kong
Comm
ercial
Daily
and
Juchao
Websit
e
(www.
cninfo.
com.c
n)
Notice
No.:
2019-0
11 on
Securit
ies
Providin Times,
Shenzhe Subsidia g Hong
By
n SDG ry of the Routine property Referen Kong
contract
Petty controlli related leasing ce to 2019-04 Comm
79.98 79.98 0.29% 140 N or 79.98
Loan ng transacti and market -02 ercial
agreeme
Co., sharehol ons manage price Daily
nt
Ltd. der ment and
service Juchao
Websit
e
(www.
cninfo.
com.c
n)
Notice
Shenzhe
No.:
n SD Subsidia Accepti
By 2019-0
Tellus ry of the Routine ng Referen
contract 11 on
Property controlli related property ce to 2019-04
581.64 581.64 26.55% 1,370 N or 581.64 Securit
Manage ng transacti manage market -02
agreeme ies
ment sharehol ons ment price
nt Times,
Co., der service
Hong
Ltd.
Kong
27
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Comm
ercial
Daily
and
Juchao
Websit
e
(www.
cninfo.
com.c
n)
Total -- -- 927.95 -- 2,050 -- -- -- -- --
Detail of sales return with major
N/A
amount involved
Report the actual implementation of
the normal related transactions which
were projected about their total Performing normally
amount by types during the reporting
period (if applicable)
Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
√Applicable □ Not applicable
Whether has non-operational contact of credit and debts or not
√Yes □No
Debts payable to related party:
Balance at Current Current Current Balance at
Related party Relationship Causes period-begin newly added recovery Interest rate interest period-end
(10 thousand (10 thousand (10 thousand (10 thousand (10 thousand
28
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Yuan) Yuan) Yuan) Yuan) Yuan)
Shenzhen
Loans
Special
Controlling interests of
Development 1,719 14 14 1,733
shareholder Huari
Group Co.,
Company
Ltd.
Shenzhen
Loan
Special
Controlling principal of
Development 589 289 300
shareholder Huari
Group Co.,
Company
Ltd.
Impact on operation results
Total profit decreased 140,000 Yuan due to the interest expenses increased in the Year
and financial status
5. Other related transactions
□Applicable √Not applicable
No other related transaction in Period
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XIV. 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
29
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Related Guarante
Actual date of
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure party
agreement)
date (Y/N)
To the expire
Shenzhen Zung Fu
date of joint
Tellus Auto 2014-09-30 3,500 2007-04-17 3,500 Pledge N Y
venture
Service Co., Ltd.
contract
Xinglong
Company
should
re-sign the
mortgage
contract with
the China
Construction
Bank and
complete the
procedures of
Shenzhen mortgaging
Xinglong all the
2018-12-28 28,000 2019-01-15 28,000 Pledged N Y
Machinery Mould properties
Co., Ltd. (hereafter
referred to as
―new
collateral‖)
on the land
certificate to
China
Construction
Bank within
60 working
days after the
release of the
30
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
land use right
certificate
(Shenfangdiz
i No.
2000599154)
of land parcel
number
H309-0024(1
). After the
China
Construction
Bank
obtained the
mortgage of
the new
collateral, the
Stock Equity
Pledge
Contract
(Gujie 2016
Fang 45605
Futian-1) was
lifted, and
China
Construction
Bank
released the
stock equity
under the
contract and
write off the
relevant
pledge
registration.
Total actual occurred external
Total approving external
0 guarantee in report period 31,500
guarantee in report period (A1)
(A2)
Total approved external Total actual balance of
guarantee at the end of report 31,500 external guarantee at the end 31,500
period (A3) of report period (A4)
Guarantee of the Company and the subsidiaries
Related Actual date of Guarante
Name of the Implemen
Announce Guarantee happening (Date Actual Guarantee Guarantee
Company e for
ment limit of signing guarantee limit type term ted (Y/N)
guaranteed
disclosure agreement) related
31
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
date party
(Y/N)
Guarantee of the subsidiaries and the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) party
date
(Y/N)
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 0 occurred guarantee in report 31,500
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 31,500 guarantee at the end of report 31,500
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
28.77%
net assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties (D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 28,000
indirectly (E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50% (F)
Total amount of the aforesaid three guarantees (D+E+F) 28,000
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
Explanation on guarantee with composite way
(2) Guarantee outside against the regulation
□Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
32
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
XV. Social responsibility
1. Major environmental protection
Listed Company and its subsidiary belong to the key pollution enterprise listed by Department of Environmental Protection
No
Nil
2. Targeted poverty alleviation social responsibility
(1) Targeted measures in poverty alleviation
During the period, the Company participates in the targeted measures in poverty alleviation for Libai Village, Shangguang Town,
Dongyuan County, Heyuan City, Guangdong Province.
(2) Annual poverty alleviation in the Year
The Company is concerned about the mountainous areas, takes the initiative to assume social responsibilities for poverty alleviation.
According to the arrangement, the Company is responsible for the hard bottoming and widening of village roads and the hard
bottoming of roads for transporting of Libai village. The project has begun on 29 December 2017, the project has been completed.
After the project is completed, it will greatly facilitate the production and transportation of Libai villagers, and the ―difficulties in
roads‖ that have plagued the villagers for many years will be thoroughly resolved.
(3) Results of targeted poverty alleviation
Measurement
Target Numbers/ implementation
unit
i. Overall —— ——
ii. Invested by specific project —— ——
1. Industrial development poverty —— ——
2. Transfer employment —— ——
3.Relocation the poor —— ——
4.Education poverty —— ——
5.Health poverty alleviation —— ——
6.Ecological protection and poverty alleviation —— ——
7.Fallback protection —— ——
8.Social poverty alleviation —— ——
9. Other —— ——
iii. Awards (content and grade) —— ——
33
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(4) Follow-up of targeted poverty alleviation
The road expansion and repair in Li Bai village
XVI. Explanation on other significant events
□ Applicable √ Not applicable
The Company had no explanation on other significant events in the reporting period.
XVII. Significant event of subsidiary of the Company
□Applicable √ Not applicable
34
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before change Increase/decrease in this time (+ , - ) After change
Capitalization
Bonus
Amount Ratio New issue of public Other Subtotal Amount Ratio
share
reserve
I. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%
1. State holding 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned
0 0.00% 0 0 0 0 0 0 0.00%
corporation shares
3. Other domestic shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: domestic legal
0 0.00% 0 0 0 0 0 0 0.00%
person‘s shares
Domestic natural
0 0.00% 0 0 0 0 0 0 0.00%
person‘s shares
4. Foreigner‘s shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporation shares
Foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person‘s shares
II. Un-restricted shares 297,281,600 100.00% 0 0 133,776,720 0 133,776,720 431,058,320 100.00%
1. RMB ordinary shares 270,881,600 91.12% 0 0 121,896,720 0 121,896,720 392,778,320 91.12%
2. Domestically listed
26,400,000 8.88% 0 0 11,880,000 0 11,880,000 38,280,000 8.88%
foreign shares
3. Foreign shares listed
0 0.00% 0 0 0 0 0 0 0.00%
oversea
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 297,281,600 100.00% 0 0 133,776,720 0 133,776,720 431,058,320 100.00%
Reasons for share changed
√Applicable □Not applicable
Profit distribution plan for year of 2018 are: carry out 4.5 additional shares for each 10 shares held by shareholders are being
converted by the capital reserve, based on total share capital 297,281,600 shares on 31st December 2018. totally 133,776,720 shares
35
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
are converted and the share capital of the Company increased to 431,058,320 after this conversion. The profit distribution plan was
implemented on 17 May 2019.
Approval of share changed
√Applicable □Not applicable
On 1 April 2019, the Profit Distribution Plan for year of 2018 was deliberated and approved by 2 nd session of 9th BOD and 4th session
of 9th Supervisory Committee, that is carry out 4.5 additional shares for each 10 shares held by shareholders are being converted by
the capital reserve, based on total share capital 297,281,600 shares on 31st December 2018. totally 133,776,720 shares are converted
and the share capital of the Company increased to 431,058,320 after this conversion. The above mentioned Plan has deliberated and
approved by Shareholders General Meeting of 2018 and implemented on 17 May 2019.
Ownership transfer of share changes
√Applicable □Not applicable
Total 133,776,720 shares are converted from public reserves, including 121,896,720 A-share which has reckoned into the security
account of A-share of shareholders directly on 15 May 2019; and 11,880,000 B-share which has reckoned into the security account of
B-share of shareholders directly on 17 May 2019.
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
√Applicable □Not applicable
The basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of
Company are declined due to the increase of total shares capital.
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
□Applicable √ Not applicable
II. Securities issuance and listing
□Applicable √ Not applicable
36
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference shareholders
Total common stock
with voting rights recovered at
shareholders in reporting 54,000 0
end of reporting period (if
period-end
applicable) (found in note 8)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Total Number of share
Amount of Amount of
Proportion shareholders Changes in pledged/frozen
Full name of Nature of
of shares restricted un-restricted
Shareholders shareholder at the end of report period
held State of
shares held shares held Amount
report period share
Shenzhen
Special State-owned
49.09% 211,591,621 +65,666,365 0 211,591,621 0
Development corporation
Group Co., Ltd.
Shenzhen
Capital Fortune
Jewelry
Domestic non
Industry
state-owned 19.89% 85,717,844 +20,716,244 0 85,717,844 0
Investment
corporate
Enterprise
(limited
partnership)
GUOTAI
JUNAN
Foreign
SECURITIES( 0.41% 1,746,091 +548,787 0 1,746,091 0
corporation
HONGKONG)
LIMITED
Agricultural
Bank of China
Other 0.34% 1,463,324 +684,483 0 1,463,324 0
Ltd. – CSI 500
ETF
Domestic nature
Li Guangxin 0.22% 964,513 +203,352 0 964,513 0
person
Huang Domestic nature
0.11% 463,565 +463,565 0 463,565 0
Xinchang person
Foreign nature
Ding Bingfang 0.11% 462,550 +196,950 0 462,550 0
person
Domestic nature
He Xing 0.10% 444,135 +144,035 0 444,135 0
person
37
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
China CITIC
Bank
Corporation
Limited
-Jianxin Other 0.10% 430,419 +294,519 0 430,419 0
Securities 500
Index Enhanced
Investment
Fund
Foreign nature
Zeng Huiming 0.10% 419,920 +224,920 0 419,920 0
person
Strategy investors or general
corporation comes top 10
Not applicable
shareholders due to rights issue (if
applicable) (see note 3)
Among the top ten shareholders, there exists no associated relationship between the
Explanation on associated state-owned legal person‘s shareholders SDG, Ltd and other shareholders, and they do not
relationship among the top ten belong to the consistent actionist regulated by the Management Measure of Information
shareholders or consistent action Disclosure on Change of Shareholding for Listed Companies. For the other shareholders of
circulation share, the Company is unknown whether they belong to the consistent actionist.
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders‘ name Amount of un-restrict shares held at Period-end
Type Amount
Shenzhen Special Development RMB ordinary
211,591,621 211,591,621
Group Co., Ltd. shares
Shenzhen Capital Fortune Jewelry
RMB ordinary
Industry Investment Enterprise 85,717,844 85,717,844
shares
(limited partnership)
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 1,746,091 listed foreign 1,746,091
LIMITED shares
Agricultural Bank of China Ltd. – RMB ordinary
1,463,324 1,463,324
CSI 500 ETF shares
Domestically
Li Guangxin 964,513 listed foreign 964,513
shares
RMB ordinary
Huang Xinchang 463,565 463,565
shares
RMB ordinary
Ding Bingfang 462,550 462,550
shares
38
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Domestically
He Xing 444,135 listed foreign 444,135
shares
China CITIC Bank Corporation
RMB ordinary
Limited -Jianxin Securities 500 430,419 430,419
shares
Index Enhanced Investment Fund
Domestically
Zeng Huiming 419,920 listed foreign 419,920
shares
Expiation on associated relationship
Among the top ten shareholders, there exists no associated relationship between the
or consistent actors within the top
state-owned legal person‘s shareholders SDG and other shareholders, and they do not belong
10 un-restrict shareholders and
to the consistent actionist regulated by the Management Measure of Information Disclosure on
between top 10 un-restrict
Change of Shareholding for Listed Companies. For the other shareholders of circulation share,
shareholders and top 10
the Company is unknown whether they belong to the consistent actionist.
shareholders
Explanation on shareholders
involving margin business about top Shareholder Huang Xinchang holds 463,565 shares of the Company through security account
ten common shareholders with for credit transactions, and holds 0 share of the Company via common security account,
un-restrict shares held (if 463,565 shares are held in total by Huang.
applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
39
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
40
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
Found more in annual report 2018 for the changes of shares held by directors, supervisors and senior executives
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.
41
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section IX. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
42
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by Shenzhen Tellus Holding Co., Ltd.
2019-06-30
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary funds 225,905,191.16 169,512,260.69
Settlement provisions
Capital lent
Trading financial assets 229,405,600.93
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable
Account receivable 113,548,299.77 86,104,660.51
Receivable financing
Accounts paid in advance 12,493,208.24 9,112,473.27
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 94,480,706.00 14,483,208.41
Including: Interest receivable 1,031,521.11 723,407.50
Dividend receivable 81,600,548.07 232,683.74
43
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Buying back the sale of financial
assets
Inventories 16,798,362.97 12,342,854.40
Contractual assets
Assets held for sale 85,017,251.77 85,017,251.77
Non-current asset due within one
year
Other current assets 42,208,745.54 332,432,494.44
Total current assets 819,857,366.38 709,005,203.49
Non-current assets:
Loans and payments on behalf
Creditors‘ investment
Available-for-sale financial assets 10,176,617.20
Other Creditors‘ investment
Held-to-maturity investment
Long-term account receivable 0.00
Long-term equity investment 153,819,742.68 224,644,766.21
Investment in other equity
10,176,617.20
instrument
Other non-current financial assets
Investment real estate 494,163,460.21 503,922,413.70
Fixed assets 109,620,846.65 112,674,017.53
Construction in progress 22,707,214.36 12,843,571.97
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 50,432,780.11 51,012,282.25
Expense on Research and
Development
Goodwill
Long-term expenses to be
7,605,860.90 6,304,607.22
apportioned
Deferred income tax asset 24,335,615.61 24,355,086.71
Other non-current asset 18,852,284.37 3,356,964.72
Total non-current asset 891,714,422.09 949,290,327.51
Total assets 1,711,571,788.47 1,658,295,531.00
Current liabilities:
44
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Short-term loans 143,000,000.00 143,000,000.00
Loan from central bank
Capital borrowed
Trading financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Note payable
Account payable 65,355,485.14 73,365,876.09
Accounts received in advance 18,558,535.20 15,897,763.97
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 27,705,350.51 25,802,670.36
Taxes payable 14,942,982.03 9,377,393.57
Other account payable 271,599,091.34 250,489,094.47
Including: Interest payable 172,792.00 290,215.78
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 541,161,444.22 517,932,798.46
Non-current liabilities:
Insurance contract reserve
Long-term loans 34,934,887.55
Bonds payable
Including: Preferred stock
Perpetual capital
securities
45
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Lease liability
Long-term account payable 3,920,160.36 3,920,160.36
Long-term wages payable
Accrual liability 2,225,468.76 2,225,468.76
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 6,145,629.12 41,080,516.67
Total liabilities 547,307,073.34 559,013,315.13
Owner‘s equity:
Share capital 431,058,320.00 297,281,600.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 431,449,554.51 565,226,274.51
Less: Inventory shares
Other comprehensive income 26,422.00 26,422.00
Reasonable reserve
Surplus public reserve 3,139,918.14 3,139,918.14
Provision of general risk
Retained profit 229,315,271.30 184,535,322.70
Total owner‘ s equity attributable to
1,094,989,485.95 1,050,209,537.35
parent company
Minority interests 69,275,229.18 49,072,678.52
Total owner‘ s equity 1,164,264,715.13 1,099,282,215.87
Total liabilities and owner‘ s equity 1,711,571,788.47 1,658,295,531.00
Legal representative: Fu Chunlong
Accounting Principal: Lou Hong
Accounting Firm‘s Principal: Liu Yuhong
2. Balance Sheet of Parent Company
In RMB
Item 2019-6-30 2018-12-31
Current assets:
46
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Monetary funds 112,937,304.70 88,836,626.14
Trading financial assets 130,000,000.00
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable
Account receivable 2,835,572.40 38,274.00
Receivable financing
Accounts paid in advance 1,075,400.00 604,800.00
Other account receivable 142,618,299.45 115,782,944.37
Including: Interest receivable 1,031,521.11 723,407.50
Dividend receivable 17,500,000.00 232,683.74
Inventories
Contractual assets
Assets held for sale 85,017,251.77 85,017,251.77
Non-current assets maturing within
one year
Other current assets 40,672,891.36 195,506,958.35
Total current assets 515,156,719.68 485,786,854.63
Non-current assets:
Creditors‘ investment
Available-for-sale financial assets 10,176,617.20
Other Creditors‘ investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 839,159,963.05 836,283,491.38
Investment in other equity
10,176,617.20
instrument
Other non-current financial assets
Investment real estate 41,069,068.40 44,820,151.69
Fixed assets 14,343,268.33 14,824,845.14
Construction in progress 22,707,214.36 12,843,571.97
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 244,903.90 249,731.94
47
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Research and development costs
Goodwill
Long-term deferred expenses 2,817,811.81 2,958,817.65
Deferred income tax assets 13,810,898.54 13,830,369.64
Other non-current assets
Total non-current assets 944,329,745.59 935,987,596.61
Total assets 1,459,486,465.27 1,421,774,451.24
Current liabilities
Short-term borrowings 143,000,000.00 143,000,000.00
Trading financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Account payable 14,000.00 19,800.00
Accounts received in advance 1,362.52 4,742.51
Contractual liability
Wage payable 5,678,506.73 4,858,788.51
Taxes payable 1,900,930.87 331,909.65
Other accounts payable 411,592,996.32 392,558,990.89
Including: Interest payable 172,792.00 232,810.41
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 562,187,796.44 540,774,231.56
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
48
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
payable
Accrued liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 562,187,796.44 540,774,231.56
Owners‘ equity:
Share capital 431,058,320.00 297,281,600.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 428,256,131.23 562,032,851.23
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 3,139,918.14 3,139,918.14
Retained profit 34,844,299.46 18,545,850.31
Total owner‘s equity 897,298,668.83 881,000,219.68
Total liabilities and owner‘s equity 1,459,486,465.27 1,421,774,451.24
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Total operating income 278,268,739.33 197,955,081.73
Including: Operating income 278,268,739.33 197,955,081.73
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 243,457,096.79 186,909,446.32
Including: Operating cost 210,494,012.42 153,739,952.11
Interest expense
Commission charge and
commission expense
Cash surrender value
49
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 2,968,165.06 2,922,621.92
Sales expense 9,358,514.29 8,337,907.27
Administrative expense 16,878,629.26 19,137,092.41
R&D expense
Financial expense 3,757,775.76 2,771,872.61
Including: Interest
4,765,937.06 3,682,093.53
expenses
Interest income 1,152,054.69 1,053,302.07
Add: other income 6,611.29
Investment income (Loss is
16,711,450.93 17,866,022.25
listed with ―-‖)
Including: Investment income
10,775,524.54 12,795,300.82
on associated enterprise and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with ―-‖)
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
101,666.14
(Loss is listed with ―-‖)
Losses of devaluation of asset
-392,040.25
(Loss is listed with ―-‖)
Income from assets disposal
103,159.68
(Loss is listed with ―-‖)
III. Operating profit (Loss is listed with
51,734,530.58 28,519,617.41
―-‖)
Add: Non-operating income 119,625.44 34,394.39
Less: Non-operating expense 833,400.00 99,688.31
IV. Total profit (Loss is listed with ―-‖) 51,020,756.02 28,454,323.49
Less: Income tax expense 6,038,256.76 1,887,473.77
50
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
V. Net profit (Net loss is listed with ―-‖) 44,982,499.26 26,566,849.72
(i) Classify by business continuity
1.continuous operating net profit
44,982,499.26 26,566,849.72
(net loss listed with -‖)
2.termination of net profit (net loss
listed with -‖)
(ii) Classify by ownership
1.Net profit attributable to owner‘s
44,779,948.60 26,920,279.86
of parent company
2.Minority shareholders‘ gains and
202,550.66 -353,430.14
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes 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 Creditors‘ investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial assets
re-classify to other comprehensive
51
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other Creditors‘ investment
7.Cash flow hedging reserve
8.Translation differences
arising on translation of foreign currency
financial statements
9.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 44,982,499.26 26,566,849.72
Total comprehensive income
44,779,948.60 26,920,279.86
attributable to owners of parent Company
Total comprehensive income
202,550.66 -353,430.14
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.1039 0.0906
(ii) Diluted earnings per share 0.1039 0.0906
As for the enterprise combination under the same control, the net profit achieved by the combined party before consolidation
was 0 Yuan in the period while 0 Yuan achieved last period
Legal representative: Fu Chunlong
Accounting Principal: Lou Hong
Accounting Firm‘s Principal: Liu Yuhong
4. Profit Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Operating income 19,112,054.55 20,083,496.42
Less: Operating cost 1,774,557.00 1,842,326.22
Taxes and surcharge 786,231.07 818,654.42
Sales expenses
Administration expenses 8,507,495.18 7,986,244.31
52
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
R&D expenses
Financial expenses 2,775,796.55 2,215,649.63
Including: interest
3,610,643.70 3,031,952.64
expenses
Interest income 851,734.70 840,898.34
Add: other income
Investment income (Loss is
11,794,465.45 14,956,569.69
listed with ―-‖)
Including: Investment income
8,376,471.67 12,154,498.47
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
-18,945.66
(Loss is listed with ―-‖)
Losses of devaluation of asset
-69,500.70
(Loss is listed with ―-‖)
Income on disposal of assets
(Loss is listed with ―-‖)
II. Operating profit (Loss is listed with
17,043,494.54 22,107,690.83
―-‖)
Add: Non-operating income 19,425.71 3,130.97
Less: Non-operating expense
III. Total Profit (Loss is listed with ―-‖) 17,062,920.25 22,110,821.80
Less: Income tax 764,471.10 19,471.10
IV. Net profit (Net loss is listed with
16,298,449.15 22,091,350.70
―-‖)
(i)continuous operating net profit
(net loss listed with -‖)
(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
53
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
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 Creditors‘ investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other Creditors‘
investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income 16,298,449.15 22,091,350.70
VII. Earnings per share:
(i) Basic earnings per share 0.0378 0.0743
(ii) Diluted earnings per share 0.0378 0.0743
54
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 275,395,004.65 190,354,252.94
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
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
Other cash received concerning
30,288,007.02 14,796,131.60
operating activities
Subtotal of cash inflow arising from
305,683,011.67 205,150,384.54
operating activities
Cash paid for purchasing
commodities and receiving labor 212,542,573.51 156,589,699.73
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
55
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
contract compensation
Net increase of financial assets
held for transaction purposes
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 26,091,445.73 25,206,855.48
Taxes paid 9,452,428.27 10,795,455.49
Other cash paid concerning
30,162,504.86 40,628,841.95
operating activities
Subtotal of cash outflow arising from
278,248,952.37 233,220,852.65
operating activities
Net cash flows arising from operating
27,434,059.30 -28,070,468.11
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
965,735,585.20 454,400,000.00
investment
Cash received from investment
5,967,222.92 4,153,597.07
income
Net cash received from disposal of
fixed, intangible and other long-term 78,500.00
assets
Net cash received from disposal of
1,504,125.26
subsidiaries and other units
Other cash received concerning
20,870,000.00 46,001,000.00
investing activities
Subtotal of cash inflow from investing
992,651,308.12 506,058,722.33
activities
Cash paid for purchasing fixed,
34,041,146.15 14,848,244.60
intangible and other long-term assets
Cash paid for investment 904,100,000.00 357,030,000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
5,733,400.00
investing activities
Subtotal of cash outflow from investing
938,141,146.15 377,611,644.60
activities
56
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Net cash flows arising from investing
54,510,161.97 128,447,077.73
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
20,000,000.00 9,000,000.00
investment
Including: Cash received from
absorbing minority shareholders‘ 20,000,000.00 9,000,000.00
investment by subsidiaries
Cash received from loans 158,020,000.00 25,082,000.00
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
178,020,000.00 34,082,000.00
activities
Cash paid for settling debts 198,814,887.55 8,665,112.45
Cash paid for dividend and profit
4,756,413.09 10,030,329.79
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
203,571,300.64 18,695,442.24
activities
Net cash flows arising from financing
-25,551,300.64 15,386,557.76
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 9.84 70.53
exchange rate
V. Net increase of cash and cash
56,392,930.47 115,763,237.91
equivalents
Add: Balance of cash and cash
142,848,120.69 161,793,218.56
equivalents at the period -begin
VI. Balance of cash and cash
199,241,051.16 277,556,456.47
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
57
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 14,820,726.01 26,539,659.00
services
Write-back of tax received
Other cash received concerning
6,580,839.48 10,135,679.87
operating activities
Subtotal of cash inflow arising from
21,401,565.49 36,675,338.87
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and workers 7,850,812.96 8,333,154.63
Taxes paid 1,157,332.91 1,125,249.42
Other cash paid concerning
14,812,259.31 31,499,877.17
operating activities
Subtotal of cash outflow arising from
23,820,405.18 40,958,281.22
operating activities
Net cash flows arising from operating
-2,418,839.69 -4,282,942.35
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
500,000,000.00 344,000,000.00
investment
Cash received from investment
3,996,094.69 3,180,515.85
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
20,870,000.00 46,001,000.00
investing activities
Subtotal of cash inflow from investing
524,866,094.69 393,181,515.85
activities
Cash paid for purchasing fixed,
7,675,914.33 2,710,314.68
intangible and other long-term assets
Cash paid for investment 487,000,000.00 339,971,900.00
Net cash received from
subsidiaries and other units obtained
58
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Other cash paid concerning
5,733,400.00
investing activities
Subtotal of cash outflow from investing
494,675,914.33 348,415,614.68
activities
Net cash flows arising from investing
30,190,180.36 44,765,901.17
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 143,000,000.00 23,000,000.00
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
143,000,000.00 23,000,000.00
activities
Cash paid for settling debts 143,000,000.00
Cash paid for dividend and profit
3,670,662.11 9,086,253.58
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
146,670,662.11 9,086,253.58
activities
Net cash flows arising from financing
-3,670,662.11 13,913,746.42
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
24,100,678.56 54,396,705.24
equivalents
Add: Balance of cash and cash
62,172,486.14 97,991,738.05
equivalents at the period -begin
VI. Balance of cash and cash
86,273,164.70 152,388,443.29
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Semi-annual of 2019
Item Owners‘ equity attributable to the parent Company
Minori Total
Share Other Capital Less: Other Reaso Surplu Provisi Retain other Subtot
59
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
capita equity instrument reserve Invent compr nable s on of ed al ty owners
l Perpe ory ehensi reserve reserve genera profit interes ‘
tual shares ve l risk ts equity
Prefe
capit incom
rred Other
al e
stock
secur
ities
I. Balance at the 297,2 565,22 184,53 1,050, 49,072 1,099,
26,422 3,139,
end of the last 81,60 6,274. 5,322. 209,53 ,678.5 282,21
.00 918.14
year 0.00 51 70 7.35 2 5.87
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at 297,2 565,22 184,53 1,050, 49,072 1,099,
26,422 3,139,
the beginning of 81,60 6,274. 5,322. 209,53 ,678.5 282,21
.00 918.14
this year 0.00 51 70 7.35 2 5.87
III. Increase/
Decrease in this 133,7 -133,7 44,779 44,779 20,202 64,982
year (Decrease 76,72 76,720 ,948.6 ,948.6 ,550.6 ,499.2
is listed with 0.00 .00 0 0 6 6
―-‖)
(i) Total 44,779 44,779 44,982
202,55
comprehensive ,948.6 ,948.6 ,499.2
0.66
income 0 0 6
(ii) Owners‘ 20,000 20,000
devoted and
,000.0 ,000.0
decreased
0 0
capital
1.Common 20,000 20,000
shares invested ,000.0 ,000.0
by shareholders 0 0
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
60
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
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 133,7 -133,7
forward internal 76,72 76,720
owners‘ equity 0.00 .00
1. Capital
reserves 133,7 -133,7
conversed to 76,72 76,720
capital (share 0.00 .00
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
61
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(VI)Others
IV. Balance at 431,0 431,44 229,31 1,094, 69,275 1,164,
26,422 3,139,
the end of the 58,32 9,554. 5,271. 989,48 ,229.1 264,71
.00 918.14
report period 0.00 51 30 5.95 8 5.13
Last period
In RMB
Semi-annual of 2018
Owners‘ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item Share Reaso Surplu Retain y
etual Capital Invent ehensi on of Subtot owners‘
capita Prefe nable s ed other interest
capit reserve ory ve genera al equity
l rred Other reserve reserve profit s
al shares incom l risk
stock
secur e
ities
I. Balance at 297,2 565,22 97,798 963,25
2,952, 34,764, 998,023
the end of the 81,60 6,274. ,595.8 9,056.
586.32 517.26 ,573.89
last year 0.00 51 0 63
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 297,2 565,22 97,798 963,25
2,952, 34,764, 998,023
the beginning 81,60 6,274. ,595.8 9,056.
586.32 517.26 ,573.89
of this year 0.00 51 0 63
III. Increase/
Decrease in this 26,920 26,920
8,738,8 35,659,
year (Decrease ,279.8 ,279.8
10.49 090.35
is listed with 6 6
―-‖)
(i) Total 26,920 26,920
-353,43 26,566,
comprehensive ,279.8 ,279.8
0.14 849.72
income 6 6
(ii) Owners‘
devoted and 9,092,2 9,092,2
decreased 40.63 40.63
capital
1.Common 9,000,0 9,000,0
62
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
shares invested 00.00 00.00
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
92,240. 92,240.
4. Other
63 63
(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
63
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
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 297,2 565,22 124,71 990,17 1,033,6
2,952, 43,503,
the end of the 81,60 6,274. 8,875. 9,336. 82,664.
586.32 327.75
report period 0.00 51 66 49 24
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Semi-annual of 2019
Other
equity instrument
Other Provisi
Perpet Less: Reasona Total
Item Share Capital compreh Surplus on of
Preferr ual Inventor ble Other owners‘
capital reserve ensive reserve general
ed capital Other y shares reserve equity
income risk
stock securiti
es
I. Balance at the 297,28
562,032, 3,139,91 18,545, 881,000,2
end of the last 1,600.0
851.23 8.14 850.31 19.68
year 0
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the 297,28
562,032, 3,139,91 18,545, 881,000,2
beginning of this 1,600.0
851.23 8.14 850.31 19.68
year 0
III. Increase/ 133,77
Decrease in this -133,776 16,298, 16,298,44
6,720.0
year (Decrease is ,720.00 449.15 9.15
0
listed with ―-‖)
64
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(i) Total
16,298, 16,298,44
comprehensive
449.15 9.15
income
(ii) Owners‘
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying 133,77
-133,776
forward internal 6,720.0
,720.00
owners‘ equity 0
1. Capital
reserves 133,77
-133,776
conversed to 6,720.0
,720.00
capital (share 0
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
65
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 431,05
428,256, 3,139,91 34,844, 897,298,6
the end of the 8,320.0
131.23 8.14 299.46 68.83
report period 0
Last period
In RMB
Semi-annual of 2018
Other
equity instrument
Other
Perpet Less: Provision Total
Item Share Capital compre Reasonab Surplus
Preferr ual Inventor of general Other owners‘
capital reserve hensive le reserve reserve
ed capital Other y shares risk equity
income
stock securit
ies
I. Balance at the 297,28
562,032 2,952,5 -1,372,86 860,894,17
end of the last 1,600.
,851.23 86.32 2.05 5.50
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 297,28
562,032 2,952,5 -1,372,86 860,894,17
the beginning 1,600.
,851.23 86.32 2.05 5.50
of this year 00
III. Increase/
Decrease in this
22,091,35 22,091,350.
year (Decrease
0.70 70
is listed with
―-‖)
(i) Total
22,091,35 22,091,350.
comprehensive
0.70 70
income
(ii) Owners‘
devoted and
decreased
66
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
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
67
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 297,28
562,032 2,952,5 20,718,48 882,985,52
the end of the 1,600.
,851.23 86.32 8.65 6.20
report period 00
68
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Shenzhen Tellus Holding Co., Ltd.
Notes to Financial Statements (Jan.-Jun. 2019)
(The unit is RMB unless otherwise specified)
I. Company profiles
1. Company profile
Chinese name of the Company:深圳市特力(集团)股份有限公司
Foreign name of the Company: ShenZhen Tellus Holding Co.,Ltd
Registered address of the Company: 3/F, Tellus Building, Shuibei 2nd Road, Luohu District, Shenzhen,
Guangdong Province.
Office address of the Company: 15/F, Zhonghe Building, Shennan Middle Road, Futian District, Shenzhen
Stock exchange for listing: Shenzhen Stock Exchange
Short form of the stock and Stock code: Tellus-A(000025),Tellus-B(200025)
Registered capital: RMB 297,281,600
Legal representative: Fu Chunlong
Unified social credit code: 91440300192192210U
2. Business nature, operating scope and major products and services of the Company
Business nature: wholesale industry of energy, materials and machinery electronic equipment.
Operating scope: Investment in industries (a separate application would be made for specific project);
domestic commerce, supply and distribution of materials (excluding those commodities subject to
exclusive operation, control and sale); rental and management of independently-owned properties.
Operation of the products produced by the Company and its subsidiaries, productive materials used by us,
and import and export of metal proceeding machinery and general components. The import and export
business is subject to the foreign trade review certificate No.098 (SMGZZDi).
Major products and services: sales, detection and maintenance of autos and sales of jewelry, property
leasing and service.
3. The history of the Company
Shenzhen Testrite Group Co., Ltd. (hereinafter referred to as the Company), previously known as
Shenzhen Machinery Industry Company, was incorporated on 10 November 1986. In 1992, as
authorized by the reply relating to Shenzhen Machinery Industry Company transforming to Shenzhen
Testrite Machinery Co., Ltd.(SFBF[1991]1012) issued by the Office of Shenzhen People Government,
Shenzhen Machinery Industry Company was transformed to Shenzhen Testrite Machinery Co., Ltd. in
1993, as authorized by the reply relating to Shenzhen Testrite Machinery Co., Ltd. transforming to a
public company (SFBF[1992]1850) issued by the Office of Shenzhen People Government and the reply
69
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
relating to issuance of stocks by Shenzhen Testrite Machinery and Electric Co., Ltd. (SRYFZ[1993]092)
issued by Shenzhen branch of People‘s Bank of China, Shenzhen Testrite Machinery Co., Ltd. changed
to be a public company and made the initial public offering. The name of the Company changed to
Shenzhen Testrite Machinery and Electric Co., Ltd., with a total share capital of 166,880,000 shares,
among which, 120,900,000 shares were converted from the original assets and 45,980,000 shares were
newly issued. The newly issued shares comprises of 25,980,000 RMB ordinary shares (A shares) and
20,000,000 RMB special shares (B shares). In June 1993, as approved by the reply relating to listing of
Shenzhen Testrite Machinery and Electric Co., Ltd. (SZBF[1993]34) issued by Shenzhen Securities
Management Office and the Listing Grant issued by Shenzhen Stock Exchange(SZSZ[1993]22),
Shenzhen Testrite Machinery and Electric Co., Ltd. was listed on Shenzhen Stock Exchange. On 15
March 1993, being approved by branch of Shenzhen Special Economic Zone of People‘s Bank of China
―Shen Ren Yin Fu Zi (1993) No.: 092‖, the Company released 25.98 million registered common A
shares with RMB 1.00 par value as well as 20 million B shares. And the Company renamed as Shenzhen
Tellus Holding Co., Ltd. instead of Shenzhen Testrite Machinery Co., Ltd. dated 30 June 1994 after
approval from the Shenzhen Administration for Industry and commerce.
Capital structure of the Company while initial public offering:
Type of shares Amount (Share) Ratio (%)
I. Non-tradable shares
Including: State shares 120,900,000 72.45
Total non-tradable shares 120,900,000 72.45
II. Outstanding shares
1. Tradable A-Share 25,980,000 15.57
2. Tradable B-Share 20,000,000 11.98
Total tradable shares 45,980,000 27.55
Total 166,880,000 100.00
All previous changes in the share capital after the public issue of the Company:
(1) Bonus shares in 1993
The Company held the resolution of annual shareholders' general meeting of 1993, distribute dividend of
0.5 Yuan in cash for every 10 shares and 2 more bonus shares to all shareholders based on the Company‘s
total share capital of 166,880,000 shares on 31st, Dec., 1993, and the Company‘s total share capital
changed to 200,256,000 shares.
On 22nd April 1994, Shenzhen Securities Regulatory Office approved the stock dividend scheme of the
Company. After the implementation of the stock dividend program, the ownership structure of the
70
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Company became as follows:
Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 145,080,000 72.45
Domestic public shares 31,176,000 15.57
RMB special stock (B-Share) 24,000,000 11.98
Total 200,256,000 100.00
(2) Bonus shares and capitalization in 1994
On 28th May 1995, the shareholders' general meeting of the Group approved the bonus share and
capitalization program proposed by the board of directors. The Company distributes 0.5 bonus shares to
every 10 shares with 0.5 more shares increased for 0.5 Yuan dividend in cash to all shareholders based on
the Company‘s total share capital of 200,256,000 shares on 31st, Dec., 1994, and the Company‘s total share
capital changed to 220,281,600 shares.
Equity structure of the Company after bonus scheme implemented:
Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 159,588,000 72.45
Domestic public shares 34,293,600 15.57
RMB special stock (B-Share) 26,400,000 11.98
Total 220,281,600 100.00
(3) The changes of controlling shareholders in 1997
On 31st March 1997, in accordance with the approval of ―Shenfuhan [1997] No.19‖ and ―Zhengjianhan
[1997] No.5‖, the People's Government of SZ Municipality and China Securities Regulatory Commission
agreed Shenzhen Investment and Management Company to transfer its 159,588,000 shares of State shares
to ―Shenzhen Special Development Group Co., Ltd‖ (hereinafter referred to as ―SDG‖), which took
proportion of 72.45% in the total share capital.
(4) Reform of non-tradable shares in 2006
In December 2005, Shenzhen State-owned Assets Supervision and Administration Commission approved
the non-tradable shares reform program of Shenzhen Tellus (Group) Ltd. which reported by the
Company‘s non-tradable shareholders - Shenzhen Special Development Group Co., Ltd.
On 4th January 2006, SDG paid 13,717,440 shares of stock to the shareholders of A shares in circulation as
the consideration of the non-tradable shares reform, and SDG held 66.22% of the Company‘s total share
capital after the non-tradable shares reform. After the implementation of the non-tradable shares reform
program, the ownership structure of the company became as follows:
Type of shares Amount (Share) Ratio (%)
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Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 145,870,560 66.22
Domestic public shares 48,011,040 21.80
RMB special stock (B-Share) 26,400,000 11.98
Total 220,281,600 100.00
(5) Non-public RMB common stock offer in 2015
In accordance with the provisions of the Company‘s 19th extraordinary meeting of the 7th session of board
of directors on April 21, 2014 and the resolutions of the fourth extraordinary general meeting of 2014 on
June 3, 2014, the non-public offering of RMB ordinary shares (A shares) that the Company issues to
Shenzhen SDG Co., Ltd. and Shenzhen CMAF Jewelry Industry Investment Company (limited partnership)
should not exceed 77,000,000 shares, of which the par value is 1 Yuan per share, the total raised funds are
no more than RMB 646,800,000.00 Yuan, the issuance objects are all subscribed in cash.
On May 19, 2014, State-owned Assets Supervision and Administration Commission of the People's
Government of Shenzhen Municipality issued ―Reply to issues related to non-public offering of shares of
Shenzhen Test Rite (Group) Co., Ltd. from SASAC of Shenzhen Municipality‖ (SGZWH No. [2014]237)
which agreed the Company‘s plan for non-public offering of shares. The Company‘s non-public offering
has obtained the ―Approval for non-public offering of shares of Shenzhen Test Rite (Group) Co., Ltd.‖
(CSRC License No. [2015]173) approved by China Securities Regulatory Commission, which agrees the
Company to issue the non-public offering of RMB ordinary shares (A shares) not exceeding 77,000,000
new shares. The registered capital is RMB 297,281,600.00 after change, and the company‘s ownership
structure is as follows:
Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 151,870,560 51.09
Domestic public shares 119,011,040 40.03
RMB special stock (B-Share) 26,400,000 8.88
Total 297,281,600 100.00
(6) Reducing stock by controlling shareholder in 2016
In accordance with the Announcement on Reducing Share Holding of Controlling Shareholder the
company disclosed on June 1, 2016, from May 4, 2016 to May 31, 2016, Shenzhen SDG Co., Ltd. totally
reduced 2,972,537 shares of the company‘s unrestricted outstanding shares by concentrated bidding,
accounting for 1% of the company‘s total share capital. On September 30, 2016, the company received a
Letter About Reducing Test Rite A Shares and Completing the Share Holding Reducing Plan from SDG,
from September 29, 2016 to September 29, 2016, SDG totally reduced 2,972,767 shares of the company‘s
unrestricted outstanding shares by concentrated bidding, accounting for 1% of the company‘s total share
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capital. Up to September 29, 2016, SDG completed the share holding reducing plan. The company's equity
structure was as follows:
Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 145,925,256 49.09
Domestic public shares 124,956,344 42.03
RMB special stock (B-Share) 26,400,000 8.88
Total 297,281,600 100.00
(7) Conversion of capital reserve to equity in 2018
On 23rd April 2019, the conversion of capital reserve to equity plan proposed by the Board was agreed by
the shareholders general meeting: 4.5 additional shares for each 10 shares held by all shareholders are
being converted by the capital reserve, based on total 297,281,600 shares on 31st December 2018, and
share capital of the Company comes to 431,058,320 in total.
The company's equity structure was as follows after completion of the plan:
Type of shares Amount (Share) Ratio (%)
State-owned corporate shares 211,591,621 49.09
Domestic public shares 181,186,699 42.03
RMB special stock (B-Share) 38,280,000 8.88
Total 431,058,320 100.00
As of 30 June 2019, the Company have 431,058,300 shares offered in total, found more in 29 of Note VI.
4. Consolidation scope of the Company in the year
Totally 15 companies included in the consolidation scope for the first half Year of 2019, found more in
―Equity in other entity‖ in the Note VIII.
5. Relevant party offering approval reporting of financial statements and date thereof
This financial statement is approved for disclosure by resolution from the Board dated 29 August 2019.
II. Basis Preparation of the Financial Statements
1.Preparation base
The financial statements of the Group is prepared based on the going-concern assumption in accordance
with the actually occurred transactions and events, the ―Accounting standards for Business
Enterprise-Basic rules‖ (ministry of finance order No. 33 issued, ministry of finance No.76 revised), the
―Accounting Standards for Business Enterprises – Basic Standards‖ and 42 specific accounting standards
promulgated by the ministry of finance on 15th, Feb., 2006, the subsequently promulgated application
guide and interpretation of the accounting standards for business enterprises and other relevant provisions
(hereinafter collectively referred to as ―ASBE‖), and China Securities Regulatory Commission
―information disclosure regulations No.15 for the companies publicly issuing securities - general
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provisions of financial reports‖ (2014 Revision).
According to the relevant requirements under the Accounting Standards for Business Enterprises, the
Company has adopted the accrual basis as its basis of accounting. Except for certain financial instruments,
historical costs have been adopted as the basis of measurement in these Financial Statements. Non-current
assets held for sale are recorded at the lower of fair value less predicted expenses and the original carrying
value when the assets satisfy such conditions for sale. Provisions of corresponding impairment losses are
recognized in respect of any impairment of assets.
III. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Groups meet the requirements of the Accounting Standards for
Business Enterprises, truthfully and completely reflect the financial situation of the Company on 30th, June
2019 and the business performance and cash flow in January to June of 2019. In addition, the financial
statements of the Company and the Group meet the disclosure requirements of ―Preparation Regulation of
Information Disclosure for Enterprise with Security Issued Publicly No.15—General Rules of Financial
Report‖ revised by China Securities Regulatory Commission in all significant aspects in 2014.
IV. Main accounting policy and estimate
The Company and its subsidiaries determine specific accounting policies and accounting estimation based
on their actual production characteristics according to the relevant requirements under the Accounting
Standards for Business Enterprises. Details relating to significant accounting judgment and estimation
made by the management, please refer to note IV(31) ―Significant accounting judgment and estimation‖.
1. Fiscal period
The accounting period of the Group includes annual and interim, accounting interim refers to the reporting
period shorter than a complete fiscal year. The fiscal year of the Group adopts the Gregorian calendar, i.e.
from 1 January to 31 December for each year.
2. Business cycle
Normal business cycle is the period from purchasing assets used for process by the Company to the cash
and cash equivalent achieved. The Company‘s normal business cycle was one-year (12 months), and as
the determining criterion of the liquidity for assets and liabilities.
3. Book-keeping currency
RMB is the currency in the major economic environment of the Company and its sub-company which take
RMB as the book-keeping currency. The Group adopts RMB as the currency when preparing this financial
statement.
4. The accounting treatment of business merger under the common control and the different control.
Business merger refers to the transactions or matters that two or more than two individual enterprises form
a reporting entity. Business merger includes the business merger under the common control and the
different control.
(1) Business merger under the common control
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Business merger under the common control means the enterprises participated in the merger are subject to
the ultimate control of the same party or the same multi-party before and after the merger, and the control
is not temporary. For the business merger under the same control, the party obtains the control rights of
other enterprises participated in the merger on the merger date is the merging party, and other enterprises
participated in the merger are the merged party. The merger date refers to the date that the merging party
obtains the control rights of the merged party.
The assets and liabilities of the merging party should be measured in accordance with the book value of
the combined party on the combining date. The balance between the book value of the net asset obtained
by the merging party and the book value of the merger consideration (or the total face value of the issued
shares) paid by the merging party, and adjust the capital reserve (share premium); for the capital reserve
(share premium) insufficient to reduce, adjust the retained earnings.
All direct expenses the merging party spent for the business merger are included in the current profit and
loss when the business merger occurred.
(2) Business merger under the different control
Business merger under the different control means the enterprises participated in the merger are not
subject to the ultimate control of the same party or the same multi-party before and after the merger. For
the business merger under the different control, the party obtains the control rights of other enterprises
participated in the merger on the acquisition date is the acquirer, and other enterprises participated in the
merger are the acquiree. The acquisition date refers to the date that the acquirer obtains the control rights
of the acquiree.
As for the business merger under the different control, the merger costs contain the assets paid by the
acquirer for obtaining the control rights of the acquiree on the acquisition date, the liabilities incurred or
assumed, and the fair value of the issued equity securities. The intermediary fees such as auditing, legal
services and consulting services costs and other administrative costs incurred by the business merger are
charged to the current profit and loss. The transaction costs of the equity securities or debt securities issued
as the combination consideration by the acquirer are reckoned in the initially recognized amount of the
equity securities or debt securities. As for the involved or existing consideration reckoned in the merger
costs in accordance with the fair value on the acquisition date, correspondingly adjust the consolidated
goodwill for these needs to be adjusted or possess consideration because new or further evidence appears
for the situations existing on the acquisition date within 12 months after the acquisition date The merger
costs of the acquirer and the net identifiable assets obtained in the merger are reckoned in accordance with
the fair value on the acquisition date. The balance of which the merger costs are more than the net
identifiable assets‘ fair value share of the acquiree obtained in the merger on the acquisition date is
recognized as goodwill. For those whose merger costs are less than the net identifiable assets‘ fair value
share of the acquiree obtained in the merger, recheck the obtained identifiable assets, liabilities, and the
fair value with contingent liability of the acquiree, and the measurement of the merger costs at first, while
for those whose merger costs are still less than the net identifiable assets‘ fair value share of the acquiree
obtained in the merge after rechecking, reckon its the balance in the current profit and loss.
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For the deductable temporary difference obtained by the acquirer from the acquiree that is not confirmed
because of not meeting the assets confirmation requirements of the deferred income taxes on the
acquisition date, if there is new or further information states that the relevant conditions on the acquisition
date has already existed and the economic interests on the acquisition date brought by the deductable
temporary difference can be realized by the acquiree within 12 months after the acquisition date, then
confirm the relevant deferred income tax assets, and decrease the goodwill, as for the goodwill insufficient
for reducing, confirm the difference to be the current profit and loss; except for the above-mentioned cases,
reckon those deferred income tax assets related to the business merger in the current profit and loss.
For a business combination not involving enterprises under common control and achieved in stages, the
company shall determine whether the business combination shall be regarded as ―a bundle of transactions‖
in accordance with ―Interpretation 5 on Accounting Standards for Business Enterprises‖ (Cai Kuai 2012
No. 19) and clause 51 of ASBE 33- Consolidated Financial Statements relating to judgment standard for ―a
bundle of transactions‖(please refer to this Note IV 5(2)). When the business combination is regarded as ―a
bundle of transactions‖, the accounting treatment for the business combination shall be in accordance with
the previous paragraphs and Note IV 13 ―long term equity investment‖; when the business combination is
not regarded as ―a bundle of transactions‖, the accounting treatment should be different when comes to
individual financial report and consolidated financial report.
In the individual financial statements, the initial cost of the investment shall be the sum of the carrying
amount of its previously-held equity interest in the acquiree prior to the acquisition date and the amount of
additional investment made to the acquiree at the acquisition date. Other comprehensive income involved
in the previously-held equity interest of the acquiree prior to the acquisition date shall be subject to
accounting treatment on the same basis adopted by the acquiree in its direct disposal of related assets or
liabilities (which are reclassified as investment income during the period , net of the audited changing
corresponding shares resulted from the net liability and net assets re-measured and set by acquiree
according to equity method ).
In the consolidate financial statements, the previously-held equity interest of the acquire is re-measured
according to the fair value at the acquisition date; the difference between the fair value and the carrying
amount is recognized as investment income for the current period; the amount recognized in other
comprehensive income relating to the previously-held equity interest in the acquire shall be subject to
accounting treatment on the same basis adopted by the acquire in its direct disposal of related assets or
liabilities (which are reclassified as investment income during the period, net of the audited changing
corresponding shares resulted from the net liability and net assets re-measured and set by acquire
according to equity method).
5. Preparing method of consolidated financial statements
(1) Determinate principles of range for consolidation financial statement
The scope of consolidated financial statements is determined based on control. Control is the power to
govern the investees so as to obtain benefits from their operating activities by the involvement in the
relevant activities of the investee. The scope of consolidation comprises the Company and all of its
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subsidiaries. Subsidiaries are the entities controlled by the Company.
Once relevant elements involved in the above definition of control change due to alteration of relevant
facts or situations, the Company will make evaluation again.
(2) Preparing method of consolidated financial statements
Since the date of gaining the net assets and the actual control rights of the production and operation
decision-making of the subsidiaries, the Group has started to bring it into the consolidation scope; stop to
bring into the consolidation scope since the date of losing the actual control rights. As for the disposed
subsidiaries, the business performance and cash flow before the disposal have been suitably included in
the consolidated income statement and the consolidated cash flow statement; as for the subsidiaries
currently disposed; don‘t adjust the opening balance of the consolidated balance sheet. For the subsidiaries
increased by the business merger under the different control, the business performance and cash flow after
its acquisition date have been suitably included in the consolidated income statement and the consolidated
cash flow statement, and don‘t adjust the opening balance and correlation date of the combined financial
statement. For the subsidiaries increased by the business merger under the common control, the business
performance and cash flow from the beginning period of the merger to its merger date have been suitably
included in the consolidated income statement and the consolidated cash flow statement, and adjust the
correlation date of the combined financial statement at the same time.
When preparing the consolidated financial statements, for the accounting policies adopted by the
subsidiaries and the Company being inconsistent during the accounting time period, adjust in accordance
with the accounting policies of the Company and the financial statements of the subsidiaries during the
accounting time period. As for the subsidiaries obtained by the business merger under the different control,
adjust the financial statements based on the fair value of the net identifiable assets on the acquisition date.
All significant intra-group current account balances, transactions and unrealized profits are offset in the
preparation of consolidated financial statements.
The stockholders' equity of the subsidiaries and the shares not belong to the Company in the current net
profit or loss are respectively served as the separate presentation in the stockholders' equity and net profits
of the minority interest and minority interest income in the consolidated financial statements. The shares
of the current net profit or loss of the subsidiaries that belong to the minority interest are listed under net
profit item in the consolidated profit statement as ―minority interest income‖ item. Reduce the minority
interest for those that the subsidiaries‘ losses shared by the minority shareholders exceed the shares that
the minority shareholders gained from the owner's equity at the beginning period of this subsidiary.
When losing the control rights of the original sub companies because of disposing some equity investment
or other reasons, re-measure the residual equity in accordance with its fair value on the date of losing the
control rights. Use the sum of the consideration obtained by disposing the stock rights and the fair value of
the residual equity to minus the balance among the net assets‘ shares of the original sub companies
continuously calculated since the acquisition date in accordance with the original shareholding ratio, and
then reckon in the current investment income when losing the control rights. The other consolidated
incomes related to the equity investment of the original sub companies, It shall be subject to accounting
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treatment on the same basis adopted by the acquiree in its direct disposal of related assets or liabilities
during the period when the control ceases (which are reclassified as investment income for the current
period, other than changes resulting from re-measuring net liability or net assets under defined benefit plan
of the original subsidiary). Thereafter, do the follow-up measurement for this part‘s residual equity in
accordance with the relevant provisions of ―Accounting Standards for Business Enterprises No.2 -
long-term equity investment‖ or ―Accounting Standards for Business Enterprises No.22 - financial
instruments recognition and measure‘, refer to the Note IV 13 ―long-term equity investment‖ or the Note
IV 9 ―financial instruments‖ for details.
The company shall determine whether loss of control arising from disposal in a series of transactions
should be regarded as a bundle of transactions. When the economic effects and terms and conditions of the
disposal transactions met one or more of the following situations, the transactions shall normally be
accounted for as a bundle of transactions: (i) The transactions are entered into after considering the mutual
consequences of each individual transaction; (ii) The transactions need to be considered as a whole in
order to achieve a deal in commercial sense; (iii) The occurrence of an individual transaction depends on
the occurrence of one or more individual transactions in the series; (iv) The result of an individual
transaction is not economical, but it would be economical after taking into account of other transactions in
the series. When the transactions are not regarded as a bundle of transactions, the individual transactions
shall be accounted as ―disposal of a portion of an interest in a subsidiary which does not lead to loss of
control‖) (for details, please refer to Note IV 13(2)④) and ―disposal of a portion of an interest in a
subsidiary which lead to loss of control‖ (details are set out in previous paragraph). When the transactions
are regarded as a bundle of transactions, the transactions shall be accounted as a single disposal transaction;
however, the difference between the consideration received from disposal and the share of net assets
disposed in each individual transactions before loss of control shall be recognized as other comprehensive
income, and reclassified as profit or loss arising from the loss of control when control is lost.
6. Classification of joint arrangement and accounting for joint operations
A joint arrangement refers to an arrangement jointly controlled by two or more parties. In accordance with
the Company‘s rights and obligations under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations. Joint operations refer to a joint arrangement during
which the Company is entitled to relevant assets and obligations of this arrangement. Joint ventures refer
to a joint arrangement during which the Company only is entitled to net assets of this arrangement.
Investment in joint venture is accounted for using the equity method accounting to the accounting policies
referred to Note IV 13(2)②―Long-term equity investment accounted for using the equity method‖.
The Company shall, as a joint venture, recognize the assets held and obligations assumed solely by the
Company, and recognize assets held and obligations assumed jointly by the Company in appropriation to
the share of the Company; recognize revenue from disposal of the share of joint operations of the
Company; recognize fees solely occurred by Company and recognize fees from joint operations in
appropriation to the share of the Company.
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When the Company, as a joint venture, invests or sells assets to or purchase assets (the assets dose not
constitute a business, the same below) from joint operations, the Company shall only recognize the part of
profit or lost from this transaction attributable to other parties of joint operations before these assets are
sold to a third party. In case of an impairment loss incurred on these assets which meets the requirements
as set out in ―Accounting Standards for Business Enterprises No. 8 – Asset Impairment‖, the Company
shall recognize the full amount of this loss in relation to its investment in or sale of assets to joint
operations, or recognize the loss according to the Company‘s share of commitment in relation to the its
purchase of assets from joint operations.
7. Determination criteria of cash and cash equivalent
Cash and cash equivalent of the Company including stock cash, deposits available for payment at any time
and the investment held by the Company with the follow characters obtained at the same time: short term
(expire within 3 months commencing from purchase day), active liquidity, easy to convert to
already-known cash, and small value change risks.
8. Foreign Currency Operations and translation of foreign currency statements
(1) Basis for translation of foreign currency transactions
The foreign currency transactions of the Company, when initially recognized, are translated into functional
currency at the prevailing spot exchange rate on the date of exchange (usually refers to the middle rate of
the exchange rate for the day as quoted by the People‘s Bank of China, the same below) while the
Company‘s foreign currency exchange operations and transactions in connection with foreign currency
exchange shall be translated into functional currency at the exchange rate actually adopted.
(2) Basis for translation of foreign currency monetary items and foreign currency non-monetary items
On the balance sheet date, foreign currency monetary items shall be translated at the spot exchange rate on
the balance sheet date. All differences are included in the consolidated income statement, except for: ①
the differences arising from foreign currency borrowings related to the acquisition or construction of fixed
assets which are qualified for capitalization; and ② except for other carrying amounts of the amortization
costs, the differences arising from changes of the foreign currency items available for sale.
When preparing consolidated financial statement involving overseas operation, in case there is foreign
currency monetary items which substantially constitute net investment in overseas operation, the exchange
difference arising from exchange rate fluctuation shall be included in other comprehensive income; and
shall transfer to gains and losses from disposal for the current period when the overseas operation is
disposed of.
The foreign currency non-monetary items measured at historical cost shall still be measured by the
functional currency translated at the spot exchange rate on the date of the transaction. Foreign currency
non-monetary items measured at fair value are translated at the spot exchange rate on the date of
determination of the fair value. The difference between the amounts of reporting currency before and after
the translation will be treated as changes in fair value (including changes in foreign exchange rates) and
recognized in profit or loss for the period or recognized as other consolidated income.
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(3) Translation of foreign currency financial statement
When preparing consolidated financial statement involving overseas operation, in case there is foreign
currency monetary items which substantially constitute net investment in overseas operation, the exchange
difference arising from exchange rate fluctuation shall be included in other comprehensive income as
―translation difference of foreign currency statement‖; and shall transfer to gains and losses from disposal
for the current period when the overseas operation is disposed of.
Foreign currency financial statement for overseas operation is translated into RMB statement by the
following means: assets and liabilities in balance sheet are translated at the spot rate as of balance sheet
date; owner‘s equity items (other than undistributed profit) are translated at the spot rate prevailing on the
date of occurrence. Income and expense items in profit statement are translated at the spot rate prevailing
on the date of transactions. Beginning undistributed profit represents the translated ending undistributed
profit of previous year; ending undistributed profit is allocated and stated as several items upon translation.
Upon translation, difference between assets, liabilities and shareholders‘ equity items shall be recorded as
foreign currency financial statement translation difference and recognized as other comprehensive income.
In case of disposal of overseas operation where control is lost, foreign currency financial statement
translation difference relating to the overseas operation as stated under shareholders‘ equity in balance
sheet shall be transferred to current gains and losses of disposal in full or under the proportion it disposes.
Foreign currency cash flow and cash flow of overseas subsidiary are translated at the spot rate prevailing
on the date of occurrence of cash flow. Influence over cash from exchange rate fluctuation is taken as
adjustment items to separately stated in cash flow statement.
The beginning figure and previous year actual figures are stated at the translated figures in previous year
financial statement.
If the Company loses control over overseas operation due to disposal of all the owners‘ equity or part
equity investment in the overseas operation or other reasons, foreign currency financial statement
translation difference relating to the overseas operation attributable to owners‘ equity of parent company as
stated under shareholders‘ equity in balance sheet shall be transferred to current gains and losses of
disposal in full.
If the Company reduces equity proportion while not loses control over overseas operation due to disposal
of part equity investment in the overseas operation or other reasons, foreign currency financial statement
translation difference relating to the disposed part will be vested to minority interests and will not transfer
to current gains and losses. When disposing part equity interests of overseas operation which is associate
or joint venture, foreign currency financial statement translation difference relating to the overseas
operation shall transfer to current disposal gains and losses according to the disposed proportion.
9. Financial instruments
Financial asset or financial liability is recognized when the Company becomes a party to financial
instrument contract.
(1) Classification, recognition and measurement of financial assets
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According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company classifies the financial assets into the financial assets measured at
amortized cost, the financial assets measured at fair value and whose changes are included in other
comprehensive income, and the financial assets measured at fair value and whose changes are included in
current profit or loss.
Financial assets are measured at fair value on initial recognition. For financial assets measured at fair
value and whose changes are included in current profit or loss, the related transaction expenses are directly
included in current profit or loss. For other types of financial assets, the related transaction costs are
included in the initial recognition amount. For the accounts receivable or notes receivable arising from the
sale of products or the provision of labor services that do not contain or consider the significant financing
components, the Company uses the consideration amount that is expected to be received as the initial
recognition amount.
①Financial assets measured at amortized cost
The Company's business model for managing financial assets measured at amortized cost is to collect
contractual cash flows, and the contractual cash flow characteristics of such financial assets are consistent
with the basic borrowing and lending arrangements, i.e. the cash flows generated on a specific date are
only the payment for the principal and the interest based on the outstanding principal amount. The
Company adopts effective interest method for this type of financial assets which are subsequently
measured at amortized cost, the gains or losses arising from amortization or impairment are included in
current profit or loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive
income
The Company's business model for managing such financial assets is to target at both the collection of
contractual cash flows and the sale, and the contractual cash flow characteristics of such financial assets
are consistent with the basic borrowing and lending arrangements. The Company adopts the fair value
measurement for such financial assets and whose changes are included in the current profit and loss, but
the impairment losses or gains, exchange gains and losses and interest income calculated by using the
effective interest method are included in current profit or loss.
In addition, the Company designates part of non-trading equity instrument investments as financial assets
measured at fair value and whose changes are included in other comprehensive income. The Company's
related dividend income of such financial assets is included in the current profit and loss, and the changes
in fair value are included in other comprehensive income. When the financial assets are derecognized, the
accumulated gains or losses previously included in other comprehensive income are transferred from other
comprehensive income to retained earnings, which are not included in current profit or loss.
③Financial assets carried at fair value through profit or loss for the current period
The Company classifies the financial assets except the above financial assets measured at amortized cost
and the above financial assets measured at fair value and whose changes are included in other
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comprehensive income into the financial assets measured at fair value and whose changes are included in
current profit or loss. In addition, at the time of initial recognition, the Company designates part of
financial assets as financial assets measured at fair value and whose changes are included in current profit
or loss in order to eliminate or significantly reduce accounting mismatch. For such financial assets, the
Company adopts fair value for subsequent measurement, and changes in fair value are included in current
profit and loss.
(2) Classification, recognition and measurement of financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured by fair value with
changes counted into current gains/losses and other financial liabilities. For financial liabilities classified
as fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss for
the period. For financial liabilities classified as other categories, relevant transaction costs are included in
the amount initially recognized.
① Financial liabilities at fair value through profit or loss for the period
Financial liabilities measured at fair value and whose changes are included in current profits or losses
include the trading financial liabilities (including derivatives belong to financial liabilities) and the
financial liabilities that are designated as fair value in the initial recognition and whose changes are
included in current profit or loss.
Trading financial liabilities (including derivatives belong to financial liabilities) are subsequently
measured at fair value, in addition to those related to hedge accounting, the changes in fair value are
included in current profit or loss.
A financial liability designated to be measured at fair value and whose changes are included in current
profit or loss, and of which the changes in fair value arising from changes in the Company's own credit
risk are included in other comprehensive income, when the liability is derecognized, its accumulated
amount of changes in fair value included in other comprehensive income and the changes arising from its
own credit risk are transferred to retained earnings. The remaining changes in fair value are included in the
current profit and loss. If the effects of changes in the own credit risk of these financial liabilities are
handled as described above, but the handling causes or expands the accounting mismatch in the profit or
loss, the Company will include all gains or losses of the financial liabilities (including the amount affected
by changes in the credit risk of the enterprise itself) in the current profit and loss.
② Other financial liabilities
Other financial liabilities, except for the financial liabilities whose transfer of financial assets doesn‘t fit
the derecognition condition or continue to be involved in the transferred financial assets, and the financial
guarantee contract, are classified as financial liabilities measured at amortized cost, which takes follow-up
measurement by amortized cost, the gains or losses arising from derecognition or amortization are
included in current profit or loss.
(3) Recognition basis and measurement method for transfer of financial assets
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As for the financial assets up to the following conditions, the recognition termination is available: ①
Termination of the contract right to take the cash flow of the financial assets; ② transferred to the
transferring-in part nearly all risk and compensation; ③ all risk and compensation neither transferred nor
retained, and with the give-up of the control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and without the
give-up of the control over the financial assets, it was recognized according to the extension of the
continual entry into the transferred financial assets and relevant liabilities are correspondingly recognized.
The continual entry into the transferred financial assets is risk level which the enterprise faces up to due to
the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the book
value of the transferred assets, together with the difference between the consideration value and the
accumulative total of the fair value change of the other consolidated income, is reckoned into the current
gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the book
value of the transferred assets is diluted on the relative fair value between the terminated part and the
un-terminated part; and reckoned into the current loss/gain is the difference between the sum of the
consideration value and the accumulative sum of the valuation change ought to be diluted into the
recognition termination part but into the other consolidated income, and the above diluted book value, is
reckoned into the current loss/gain.
For financial assets that are transferred with recourse or endorsement, the Group needs to determine
whether the risk and rewards of ownership of the financial asset have been substantially transferred. If the
risk and rewards of ownership of the financial asset have been substantially transferred, the financial assets
shall be derecognized. If the risk and rewards of ownership of the financial asset have been retained, the
financial assets shall not be derecognized. If the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset, the Group shall assess whether the control over the
financial asset is retained, and the financial assets shall be accounted for according to the above
paragraphs.
(4) Termination recognition of financial liabilities
Only is released the whole (or part) of the current duties, the termination of the liabilities (or part of it) is
available. The Group (the debtor) signed the agreement with the lender: the original liabilities are replaced
by the bearing of the new liabilities; and the contract terms are fundamentally different of the new
liabilities and the original ones; the termination of the recognition of the original ones is available; and the
recognition of new ones is available.
If the Company makes substantial changes to the contractual terms of the original financial liabilities (or a
part thereof), derecognize the original financial liabilities, and recognize a new financial liability in
accordance with the revised terms.
If the financial liability (or a part thereof) is derecognized, the Company includes the difference between
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the book value and the consideration paid (including the transferred non-cash assets or liabilities assumed)
in current profit or loss.
(5) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the
financial assets, the balance-out sum between the financial assets and liabilities is listed in the balance
sheet. In addition, the financial assets and liabilities are listed in the balance sheet without being balanced
out.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for
transferring a liability in an orderly transaction that occurs on the measurement date. For a financial
instrument having an active market, the Company uses the quoted prices in the active market to determine
its fair value. Quotations in an active market refer to prices that are readily available from exchanges,
brokers, industry associations, pricing services, etc., and represent the prices of market transactions that
actually occur in an arm's length transaction. If there is no active market for a financial instrument, the
Company uses valuation techniques to determine its fair value. Valuation techniques include reference to
prices used in recent market transactions by parties familiar with the situation and through voluntary trade,
and reference to current fair values of other financial instruments that are substantially identical,
discounted cash flow methods, and option pricing models. At the time of valuation, the company adopts
valuation techniques that are applicable in the current circumstances and that are sufficiently supported by
data and other information, selects the input value with characteristics consistent with the characteristics of
assets or liabilities to be considered in the transactions of the relevant assets or liabilities of the market
participants, and uses the relevant observable input values as much as possible. Use unallowable input
values if the relevant observable input values are not available or are not practicable.
(7) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or
cancels equity instruments as movement of equity, transaction fees relating to equity transactions are
deducted from equity. No fair value change of equity instrument would be recognized by the Company.
The Company's equity instruments that distribute dividends during the existence period (including
―interests‖ generated by instruments classified as equity instruments) are treated as profit distribution.
10. Impairment of financial assets
The financial assets that the Company needs to recognize impairment loss are financial assets measured at
amortized cost, debt instruments investment that are measured at fair value and whose changes are
included in other comprehensive income, and lease receivables, mainly including bills receivable, account
receivables, other receivables, debt investment, other debt investments, long-term receivables, etc. In
addition, for contract assets and some financial guarantee contracts, the impairment provision is also made
and credit impairment losses are recognized in accordance with the accounting policies described in this
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section.
(1) Confirmation method of impairment provision
On the basis of expected credit losses, the Company makes provision for impairment and confirms credit
impairment losses for each of the above items in accordance with its applicable expected credit loss
measurement method.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to
be received, that is, the present value of all cash shortages. Among them, for the purchase or source of
financial assets that have suffered credit impairment, the Company discounts the financial assets at the
actual interest rate adjusted by credit.
The general method for measuring the estimated credit loss is that the Company assesses whether the
credit risk of the financial assets (including other applicable items such as contract assets, the same below)
has been significantly increased since the initial recognition on each balance sheet date, if the credit risk
has increased significantly after the initial recognition, the Company shall measure the loss preparation
according to the amount of expected credit loss in the whole duration; if the credit risk has not increased
significantly since the initial recognition, the Company shall measure the loss preparation according to the
amount equivalent to the expected credit loss in the next 12 months. The Company considers all
reasonable and evidenced information, including forward-looking information, when evaluating expected
credit losses.
For the financial instrument with lower credit risk on the balance sheet date, the Company assumes that its
credit risk has not increased significantly since the initial recognition, and measures the loss provisions
according to the expected credit losses in the next 12 months.
(2) Judging criteria for whether credit risk has increased significantly since initial recognition
If the probability of default of a financial asset within the estimated duration recognized on the balance
sheet is significantly higher than the probability of default within the estimated duration decided at the
initial recognition, it indicates that the credit risk of the financial asset is significantly increased. Except
for special circumstances, the Company uses the change in default risk occurring within the next 12
months as a reasonable estimate of the change in default risk throughout the duration to determine whether
the credit risk has increased significantly since the initial recognition.
(3) A combined approach to assessing expected credit risk on a portfolio basis
The Company evaluates credit risk individually for financial assets with significantly different credit risks.
That is: Account receivable from related party; receivables that are in dispute with counter party or involve
litigation and arbitration; the receivable has a clear indication that the debtor is likely to be unable to meet
the repayment obligations etc.
In addition to financial assets that assess credit risk individually, the Company classifies financial assets
into different groups based on common risk characteristics and evaluates credit risk on a portfolio basis.
(4) Accounting treatment of financial assets impairment
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At the end of the period, the Company calculates the estimated credit losses of various financial assets. If
the estimated credit loss is greater than the carrying amount of its current impairment provision, the
difference is recognized as the impairment loss; if it is less than the carrying amount of the current
impairment provision, the difference is recognized as an impairment gain.
(5) Methods for determining the credit losses of various financial assets
①Notes receivable
The Company measures the losses for the notes receivable in accordance with the expected credit loss
amount for the entire duration of the period. Notes receivable are classified into different combinations
based on their credit risk characteristics:
Item Basis for determining the combination
Bank acceptance The acceptor is the banks with less credit risk
Trade acceptance According to the acceptor‘s credit risk division
② Accounts receivable and contract assets
For receivables and contract assets that do not contain significant financing components, the Company
measures the loss provision based on the amount of expected credit losses equivalent to the entire duration
of the period.
For receivables, contract assets and lease receivables that contain significant financing components, the
Company chooses to always measure the loss provisions based on the amount of expected credit losses
during the duration. In addition to accounts receivable and contract assets whose credit risk is assessed
individually, they are classified into different combinations based on their credit risk characteristics:
Item Basis for determining the combination
Account age Taking the account age as the characteristic of credit risk
③Other account receivable
The Company measures the impairment loss based on the amount of expected credit losses in the next 12
months or the entire duration based on whether the credit risk of other receivables has increased
significantly since the initial recognition. In addition to the single assessment of credit risk of other
receivable, we classified into different combinations based on their credit risk characteristics:
Item Basis for determining the combination
Account age Taking the account age as the characteristic of credit risk
④Long-term account receivable(including the receivables with major financing components contained
and except for the lease receivable)
The Company measures the impairment loss of long-term account receivable based on the amount of
expected credit losses in the next 12 months or the entire duration based on whether the credit risk of
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other receivables has increased significantly since the initial recognition. In addition to the single
assessment of credit risk of long-term account receivable, we classified into different combinations
based on their credit risk characteristics:
Item Basis for determining the combination
Account age Taking the account age as the characteristic of credit risk
11. Inventories
(1) Classification of inventories
Inventory including raw materials, stock commodity and low value consumables etc.
(2) Pricing for inventories delivered and obtained
Inventories are priced at actual costs when acquired. Inventory cost includes procurement cost, processing
cost and other costs. Raw materials and inventory commodities are measured under weighted average
method when applied for use and delivered.
(3) Recognition for net realizable value of inventories and withdrawal method for inventory impairment
provision
Net realizable value refers to the amount resulted by inventory‘s estimated sale price minor the cost, which
is going to occurred till end of the completion, estimated sales expenses and relevant taxes, in daily
activities. At the time of recognizing the net realizable value for inventory, on basis of unambiguous
evidence, take the purpose of inventory held and influence of events after the balance sheet date into
account at the same time.
On balance sheet date, measure of the inventory is made as the lower of their cost and or net realizable
values. Provision for inventory depreciation reserve are made while the net realizable values below the cost.
Inventory falling price reserves withdrawal usually base on the difference of the cost of single inventory
which over the net realizable value. As for inventories with numerous quantity and low unit price,
inventory depreciation provision is made based on categories of inventories.
After inventory impairment provision, if any factor rendering write-downs of the inventories has been
eliminated as net realizable value higher than its book value resulted, the amounts written down are
recovered and reversed from the inventory depreciation reserve, which has been provided for. The
reversed amounts are included into the current profit and loss.
(4) Inventory system was the perpetual inventory system.
(5) Low value consumptions and packing materials are amortized under amortization method when
applied for use.
12. Held-for-sale assets and disposal group
The Company shall classify a non-current asset or disposal group as held for sale if its carrying amount
will be recovered principally through a sale transaction (including a non-monetary asset exchange of
commercial substance, the same below) rather than through continuous use, and when all of the following
conditions are met: according to the practice of disposing of this type of assets or disposal groups in a
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similar transaction, a non-current asset or disposal group is available for immediate sale in its present
condition; the Company has made a resolution in respect of a disposal plan and obtained a firm purchase
commitment from a buyer; and the sale is probable to be completed within one year. A disposal group is a
group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and
liabilities directly associated with those assets that will be transferred in the transaction. Where goodwill
acquired in a business combination has been allocated to the asset group or groups to which a disposal
group belongs in accordance with the Accounting Standard for Business Enterprises No. 8 - Impairment of
Assets, the disposal group shall include the goodwill allocated to it.
When the Company measures initially or remeasures the non-current assets and disposal group classified
as held for sale on the balance sheet date, its carrying amount is written down to its fair value less selling
costs if its carrying amount is higher than its fair value less costs to sell. The reduced amount is recognized
as asset impairment loss and charged to current profit or loss, with provision made for the impairment of
the held-for-sale assets. With regard to the disposal group, the asset impairment loss recognized is offset
by the carrying amount of the goodwill in the disposal group first, and then by the carrying amount of each
of the non-current assets in the disposal group which are applicable to the measure requirements under the
Accounting Standard for Business Enterprises No. 42 - Non-current Assets Held For Sale, Disposal
Groups and Discontinued Operations (hereinafter referred to as ―Held-For-Sale Standard‖) pro rata. If on a
subsequent balance sheet date, the net amount of the fair value of a held-for-sale disposal group less its
costs to sell increases, the amount reduced previously shall be recovered, and reversed in the asset
impairment loss recognized on the non-current asset which is applicable to the measurement requirements
of the Held-For-Sale Standard after the non-current asset is classified as held for sale. The reversed
amount is credited to current profit or loss, and the carrying amount of each non-current asset (other than
goodwill) which is applicable to the measurement requirements of the Held-For-Sale Standard is increased
pro rata according to the percentage of each non-current asset‘s carrying amount. Neither the carrying
amount of goodwill which has been offset nor the asset impairment loss recognized before the non-current
asset to which the measurement requirements of the Held For-Sale Standard is applicable is classified as
held for sale can be reversed.
No depreciation or amortization is provided for a non-current asset in the non-current assets or disposal
groups held for sale. Interest and other expenses attributable to the liabilities of a disposal group held for
sale shall continue to be recognized.
When a non-current asset or a disposal group does not meet the condition to be classified as held for sale,
the Company ceases to classify it as held for sale or removes the non-current asset from the disposal group
held for sale, and measures it at the lower of: (1) the carrying amount before it was classified as held for
sale, adjusted for any depreciation (or amortization) or impairment that would have been recognized had it
not been classified as held for sale, and (2) its recoverable amount.
13. Long term equity investment
Long-term equity investments under this section refer to long-term equity investments in which the
Company has control, joint control or significant influence over the investee. Long-term equity investment
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without control or joint control or significant influence of the Group is accounted for as available-for-sale
financial assets or financial assets measured at fair value with any change in fair value charged to profit or
loss. Details on its accounting policy please refer to Note 9. ―Financial instruments‖ under section IV.
Joint control is the Company‘s contractually agreed sharing of control over an arrangement, which
relevant activities of such arrangement must be decided by unanimously agreement from parties who share
control. Significant influence is the power of the Company to participate in the financial and operating
policy decisions of an investee, but to fail to control or joint control the formulation of such policies
together with other parties.
(1) Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing
party‘s share of the carrying amount of the owner‘s equity under the consolidated financial statements of
the ultimate controlling party on the date of combination. The difference between the initial cost of the
long-term equity investment and the cash paid, non-cash assets transferred as well as the book value of the
debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is
insufficient to offset, the retained earnings shall be adjusted. If the consideration of the merger is satisfied
by issue of equity securities, the initial investment cost of the long-term equity investment shall be the
absorbing party‘s share of the carrying amount of the owner‘s equity under the consolidated financial
statements of the ultimate controlling party on the date of combination. With the total face value of the
shares issued as share capital, the difference between the initial cost of the long-term equity investment
and total face value of the shares issued shall be used to offset against the capital reserve. If the capital
reserve is insufficient to offset, the retained earnings shall be adjusted. For business combination resulted
in an enterprise under common control by acquiring equity of the absorbing party under common control
through a stage-up approach with several transactions, these transactions will be judged whether they shall
be treat as ―transactions in a basket‖. If they belong to ―transactions in a basket‖, these transactions will be
accounted for a transaction in obtaining control. If they are not belong to ―transactions in a basket‖, the
initial investment cost of the long-term equity investment shall be the absorbing party‘s share of the
carrying amount of the owner‘s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term
equity investment and the aggregate of the carrying amount of the long-term equity investment before
merging and the carrying amount the additional consideration paid for further share acquisition on the date
of combination shall offset against the capital reserve. If the capital reserve is insufficient to offset, the
retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously
held equity investment accounted for using equity method on the date of combination or recognized for
available-for-sale financial assets will not be accounted for.
For a long-term equity investment acquired through a business combination involving enterprises not
under common control, the initial investment cost of the long-term equity investment shall be the cost of
combination on the date of acquisition. Cost of combination includes the aggregate fair value of assets
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paid by the acquirer, liabilities incurred or borne and equity securities issued. For business combination
resulted in an enterprise not under common control by acquiring equity of the acquiree under common
control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as ―transactions in a basket‖. If they belong to ―transactions in a basket‖, these
transactions will be accounted for a transaction in obtaining control. If they are not belong to ―transactions
in a basket‖, the initial investment cost of the long-term equity investment accounted for using cost
method shall be the aggregate of the carrying amount of equity investment previously held by the acquiree
and the additional investment cost. For previously held equity accounted for using equity method, relevant
other comprehensive income will not be accounted for. For previously held equity investment classified as
available-for-sale financial asset, the difference between its fair value and carrying amount, as well as the
accumulated movement in fair value previously included in the other comprehensive income shall be
transferred to profit or loss for the current period.
Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and
valuation and consultation fees, and other related administration expenses are charged to profit or loss in
the current period at the time such expenses incurred.
The long-term equity investment acquired through means other than a business combination shall be
initially measured at its cost. Such cost is depended upon the acquired means of long-term equity
investments, which is recognized based on the purchase cost actually paid by the Company in cash, the
fair value of equity securities issued by the Group, the agreed value of investment contract or agreement,
the fair value or original carrying amounts of the non-monetary asset exchange transaction which the asset
will be transferred out of the Company, and the fair value of long-term equity investment itself. The costs,
taxes and other necessary expenses that are directly attributable to the acquisition of the long-term equity
investments are also included in the investment cost. For additional equity investment made in order to
obtain significant influence or common control over investee without resulted in control, the relevant cost
for long-term equity investment shall be the aggregate of fair value of previously held equity investment
and additional investment cost determined according to ―Accounting Standard for Business Enterprises No.
22 – Recognition and measurement of Financial Instruments‖.
(2) Subsequent measurement and income recognition method
Long term equity investment by which the Company has common control (other than that constituting
joint operation) or significant influence in investee is measured under equity method. In addition, long
term equity investment by which the Company is able to exercise control in investee is measured under
cost method in financial statements.
①Long term equity investment measured under cost method
Under cost method, long term equity investment is measured at initial investment cost, and cost of long
term equity investment shall be adjusted in case of adding or recovering investment. Other than the price
actually paid when obtaining investment or cash dividends or distribution declared but not paid in
consideration, investment income for the period would be recognized based on the cash dividend or
distribution declared by the investee.
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② Long-term equity investments accounted for using the equity method
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor‘s interest in the fair value of the investee‘s identifiable net assets at the acquisition date, no
adjustment shall be made to the initial investment cost. Where the initial investment cost is less than the
investor‘s interest in the fair value of the investee‘s identifiable net assets at the acquisition date, the
difference shall be charged to profit or loss for the current period, and the cost of the long term equity
investment shall be adjusted accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on
the Group‘s share of the net profits or losses and other comprehensive income made by the investee,
respectively. Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The
carrying amount of long-term equity investment shall be reduced based on the Group‘s share of profit or
cash dividend distributed by the investee. In respect of the other movement of net profit or loss, other
comprehensive income and profit distribution of investee, the carrying value of long-term equity
investment shall be adjusted and included in the capital reserves. The Group shall recognize its share of
the investee‘s net profits or losses based on the fair values of the investee‘s individual separately
identifiable assets at the time of acquisition, after making appropriate adjustments thereto. In the event of
inconformity between the accounting policies and accounting periods of the investee and the Company,
the financial statements of the investee shall be adjusted in conformity with the accounting policies and
accounting periods of the Company. Investment gain and other comprehensive income shall be recognized
accordingly. In respect of the transactions between the Group and its associates and joint ventures in
which the assets disposed of or sold are not classified as operation, the share of unrealized gain or loss
arising from inter-group transactions shall be eliminated by the portion attributable to the Company.
Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-group
transactions between the Group and an investee is not eliminated to the extent that the loss is impairment
loss of the transferred assets. In the event that the Group disposed of an asset classified as operation to its
joint ventures or associates, which resulted in acquisition of long-term equity investment by the investor
without obtaining control, the initial investment cost of additional long-term equity investment shall be the
fair value of disposed operation. The difference between initial investment cost and the carrying value of
disposed operation will be fully included in profit or loss for the current period. In the event that the Group
sold an asset classified as operation to its associates or joint ventures, the difference between the carrying
value of consideration received and operation shall be fully included in profit or loss for the current period.
In the event that the Company acquired an asset which formed an operation from its associates or joint
ventures, relevant transaction shall be accounted for in accordance with ―Accounting Standards for
Business Enterprises No. 20 ―Business combination‖. All profit or loss related to the transaction shall be
accounted for.
The Group‘s share of net losses of the investee shall be recognized to the extent that the carrying amount
of the long-term equity investment together with any long-term interests that in substance form part of the
investor‘s net investment in the investee are reduced to zero. If the Group has to assume additional
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obligations, the estimated obligation assumed shall be provided for and charged to the profit or loss as
investment loss for the period. Where the investee is making profits in subsequent periods, the Group shall
resume recognizing its share of profits after setting off against the share of unrecognized losses.
If there is debit variation in relation to the long-term equity investments in associates and joint venture
held prior to first adoption of the Accounting Standards for Business Enterprises by the Group on 1
January 2007, the amounts amortized over the original residual term using the straight-line method is
included in the profit or loss for the period.
③Acquisition of minority interests
Upon the preparation of the consolidated financial statements, since acquisition of minority interests
increased of long-term equity investment which was compared to fair value of identifiable net assets
recognized which are measured based on the continuous measurement since the acquisition date (or
combination date) of subsidiaries attributable to the Group calculated according to the proportion of newly
acquired shares, the difference of which recognized as adjusted capital surplus, capital surplus insufficient
to set off impairment and adjusted retained earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, where the parent company disposes of a portion of the long
term equity investments in a subsidiary without a change in control, the difference between disposal cost
and disposal of long-term equity investments relative to the net assets of the subsidiary is charged to the
shareholders‘ equity. As for the disposal of a portion of the long term equity investments in a subsidiary
by the parent company leading to lose of control over such subsidiary, it shall be accounted for under the
relevant accounting policies described in Note IV.5-(2) Headed ―preparation methods for consolidated
financial statements‖.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment at equity with the remaining equity interest after disposal also
accounted for using equity method, other comprehensive income previously under owners‘ equity shall be
accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or
liability by investee on pro rata basis at the time of disposal. The owners‘ equity recognized for the
movement of other owners‘ equity (excluding net profit or loss, other comprehensive income and profit
distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment at cost with the remaining equity interest after disposal is also
accounted for at cost, other comprehensive income recognized due to measurement at equity or
recognition and measurement for financial instruments prior to obtaining control over investee shall be
accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or
liability by investee and carried forward to current gains and losses on pro rata basis. The movement of
other owners‘ equity (excluding net profit or loss, other comprehensive income and profit distribution of
investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in
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preparing separate financial statements, the remaining equity interest which can apply common control or
impose significant influence over the investee after disposal shall be accounted for using equity method.
Such remaining equity interest shall be treated as accounting for using equity method since it is obtained
and adjustment was made accordingly. For remaining equity interest which cannot apply common control
or impose significant influence over the investee after disposal, it shall be accounted for using the
recognition and measurement standard of financial instruments. The difference between its fair value and
carrying amount as at the date of losing control shall be included in profit or loss for the current period. In
respect of other comprehensive income recognized using equity method or the recognition and
measurement standard of financial instruments before the Group obtained control over the investee, it shall
be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or
liability by investee at the time when the control over investee is lost. Movement of other owners‘ equity
(excluding net profit or loss, other comprehensive income and profit distribution under net asset of
investee accounted for and recognized using equity method) shall be transferred to profit or loss for the
current period at the time when the control over investee is lost. Of which, for the remaining equity
interest after disposal accounted for using equity method, other comprehensive income and other owners‘
equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for
using the recognition and measurement standard of financial instruments, other comprehensive income
and other owners‘ equity shall be fully transferred.
In the event of loss of common control or significant influence over investee due to partial disposal of
equity investment by the Group, the remaining equity interest after disposal shall be accounted for using
the recognition and measurement standard of financial instruments. The difference between its fair value
and carrying amount as at the date of losing common control or significant influence shall be included in
profit or loss for the current period. In respect of other comprehensive income recognized under previous
equity investment using equity method, it shall be accounted for in accordance with the same accounting
treatment for direct disposal of relevant asset or liability by investee at the time when equity method was
ceased to be used. Movement of other owners‘ equity (excluding net profit or loss, other comprehensive
income and profit distribution under net asset of investee accounted for and recognized using equity
method) shall be transferred to profit or loss for the current period at the time when equity method was
ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions
until the control over the subsidiary is lost. If the said transactions belong to ―transactions in a basket‖,
each transaction shall be accounted for as a single transaction of disposing equity investment of subsidiary
and loss of control. The difference between the disposal consideration for each transaction and the
carrying amount of the corresponding long-term equity investment of disposed equity interest before loss
of control shall initially recognized as other comprehensive income, and subsequently transferred to profit
or loss arising from loss of control for the current period upon loss of control.
14. Investment real estate
Investment real estate is the real estate that held by the Company for purpose of obtaining rent or capital
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appreciation or both purpose received. Investment real estate including rented land use right, land use right
held ready for transfer after appreciation and rented buildings etc. In addition, for the vacant buildings held
by the Company for the purpose of operating lease, if the board of directors (or similar institution) has a
written resolution which clearly states to use them for operating leases and the intention to hold shall no
longer change in the short term, they will be reported as investment real estate.
The investment real estate shall be measured initially at the cost. The subsequent spending related to the
investment real estate, if it is very likely for the related economic interest to flow in and its cost can be
reliably measured, shall be included in the cost for the investment real estate. Other subsequent spending
shall be included in the current profit or loss when occurring.
The Company applies the cost model for subsequent measurement of investment real estate, and
depreciates and amortizes it as per the policy consistent to those for the houses and buildings and land use
right.
For details about the methods for impairment testing of the investment real estate and for accrual of
impairment provision, see Note IV 20 ―Impairment of long term assets‖.
Where property for own use or inventory transfers to investment property, or investment property transfers
to property for own use, carrying value before such transfer shall be taken as book value after such
transfer.
In the event that an investment property is converted to an owner-occupied property, such property shall
become fixed assets or intangible assets since the date of its conversion. In the event that an
owner-occupied property is converted to real estate held to earn rentals or for capital appreciation, such
fixed assets or intangible assets shall become an investment property since the date of its conversion.
Upon the conversion, investment property which is measured at cost is accounted for with the carrying
value prior to conversion, and investment property which is measured at fair value is accounted for with
the fair value as of the conversion date.
If an investment property is disposed of or if it withdraws permanently from use and no economic benefit
will be obtained from the disposal, the recognition of it as an investment property shall be terminated.
When an investment property is sold, transferred, retired or damaged, the amount of proceeds on disposal
of the property net of the carrying amount and related tax and surcharges is recognized in profit or loss for
the current period.
15. Fixed assets
(1) Recognition criteria of fixed assets
Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering services,
renting or business management with useful lives exceeding one fiscal year. Fixed assets are only
recognized when the relevant economic benefits are likely to inflow to the Company and their cost can be
measured reliably. Fixed assets are initially measured at cost taking into account predicted disposal
expenses.
(2) Depreciation method of fixed assets
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Accrual depreciation of fixed assets shall be made based on straight-line depreciation within the service
life since the second month, when the fixed assets reached its expected condition for use. Service life,
estimated net residual value and annual depreciation rate for vary fixed assets are as:
Annual
Depreciation term Residual rate
Category Depreciation method depreciation rate
(year) (%)
(%)
House and buildings Straight-line method 35-40 3 2.43-2.77
Machinery equipment Straight-line method 12 3 8.08
Transportation equipment Straight-line method 7 3 13.86
Electronic equipment Straight-line method 5-7 3 13.86-19.4
Office and other equipment Straight-line method 7 3 13.86
Decoration charge for Straight-line method 10 0
self-owned houses 10.00
Estimated net residual value is the amount obtained from disposal of such fixed assets after estimated
disposal expense deducted, on assumption basis of the fixed assets has full estimated service life and in an
anticipating condition of service life terminated.
(3) Impairment test method and accrual of depreciation reserves for fixed asset
Impairment test method and accrual of depreciation reserves for fixed asset please found in ―20.
Impairment of long-term assets‖ in Note IV.
(4)Recognition and accounting method of fixed assets acquired under finance leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks
and rewards of asset ownership to the lessee and titles to the assets may or may not eventually be
transferred. For fixed assets acquired under finance leases, the basis for provision of leased assets
depreciation is the same as that of self-owned fixed assets. When it can be reasonably determined that the
ownership of a leased asset will be transferred at the end of the lease term, it is depreciated over the period
of expected use; otherwise, the lease asset is depreciated over the shorter period of the lease term and the
period of expected use.
(5) Others
As for the subsequent expenditure related to fixed assets, if the economic benefits related to the fixed
assets is probable to flow into the Company and its cost could be measured reliably, then the expenditure
shall be included in costs of the fixed assets, and the carrying value of the replaced portion shall be
derecognized. Other subsequent expenditures other than this shall be included in profits or losses of the
period when occurred.
Fixed assets are derecognized when there is no economic benefit arising from disposal or expected use or
disposal of fixed assets. The disposal income from disposal, transfer, dumping or damage of fixed assets
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less its carrying value and related tax expenses shall be recorded in profits or losses of the period.
The Company, at least, re-reviews the use of life, projected net residual value and depreciation method of
fixed assets at the end of year. For any change of the above factor, it shall be dealt as change of accounting
estimation.
16. Construction-in-progress
Cost of construction-in-progress should recognized by the actual construction costs, including vary
construction costs during the period of construction, the capitalized borrowing costs prior to the expected
conditions for use and other relevant expenses etc. The construction-in-progress should carry forward as
fixed assets after reached the expected conditions for use.
Impairment test method and impairment provision method for the construction-in-progress found in
―20.impairment of long-term assets‖ in Note IV.
17. Borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary
costs incurred in connection with the arrangement of borrowings, and exchange differences arising from
foreign currency borrowings. For borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, when expenditures for the asset and borrowing costs are
being incurred, activities relating to the acquisition, construction or production of the asset that are
necessary to prepare the asset for its intended use or sale have commenced, such borrowing costs shall be
capitalized as part of the cost of that asset; and capitalization shall discontinue when the qualifying asset is
ready for its intended use or sale. Other borrowing costs shall be recognized as expense in the period in
which they are incurred.
Where funds are borrowed for a specific purpose, the amount of interest to be capitalized shall be the
actual interest expense incurred on that borrowing for the period less any bank interest earned from
depositing the borrowed funds before being used into banks or any investment income on the temporary
investment of those funds. Where funds are borrowed for general purpose, the Group shall determine the
amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted
average of the excess amounts of cumulative expenditures on the asset over and above the amounts of
specific-purpose borrowings. The capitalization rate shall be the weighted average of the interest rates
applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to the principal and interest on a specific
purpose borrowing denominated in foreign currency shall be capitalized as part of the cost of the
qualifying asset. Exchange differences related to general-purpose borrowings denominated in foreign
currency shall be included in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc) that necessarily take a
substantial period of time for acquisition, construction or production to get ready for their intended use or
sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction
or production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous
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period of more than 3 months, until the acquisition, construction or production of the qualifying asset is
resumed.
18. Intangible assets
(1) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled
by the Group.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset
shall be recognized as cost of the intangible asset only if it is probable that economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably. Other expenditures
on an item asset shall be charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g.
plants), related land use right and the buildings shall be separately accounted for as an intangible asset and
fixed asset. For buildings and structures purchased, the purchase consideration shall be allocated among
the land use right and the buildings on a reasonable basis. In case there is difficulty in making a reasonable
allocation, the consideration shall be recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any
accumulated impairment loss provision and amortized using the straight-line method over its useful life
when the asset is available for use. Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with an infinite useful life and the amortization
method applied at period-end. A change in the useful life or amortization method used shall be accounted
for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Group
shall review the useful life of the asset. If there is evidence indicating that the period during which the
intangible assets brings in economic benefits to the Group can be predicted, the Group shall estimate the
useful life of that asset and make amortization under the amortization policies applicable to intangible
assets with finite useful life.
(2) Research and development expenditures
Research and development expenditure of the Group was divided into expenses incurred during the
research phase and expenses incurred during the development phase.
Expenses incurred during the research phase are recognized as profit or loss in the current period.
Expenses incurred during the development phase that satisfy the following conditions are recognized as
intangible assets, while those that do not satisfy the following conditions are accounted for in the profit or
loss for the current period:
①it is technically feasible that the intangible asset can be used or sold upon completion;
②there is intention to complete the intangible asset for use or sale;
③the intangible asset can produce economic benefits, including there is evidence that the products
produced using the intangible asset has a market or the intangible asset itself has a market; if the intangible
asset is for internal use, there is evidence that there exists usage for the intangible asset;
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④there is sufficient support in terms of technology, financial resources and other resources in order to
complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
If the expenses incurred during the research phase and the development phase cannot be distinguished
separately, all development expenses incurred are accounted for in the profit or loss for the current period.
(3) Intangible assets impairment test method and their impairment provision
The method for impairment test and impairment provision of intangible assets is detailed in Note IV. 20
―Impairment of long-term asset‖.
19. Long-term prepaid expenses
Long-term prepaid expenses refer to the general expenses that occurred but shall be amortized over one
year in reporting period and later period. Long-term prepaid expenses shall amortized by straight-line
method in expected benefit period.
20. Impairment of long term assets
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of
long-term investments such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint
controlled entities and associates. If there is any evidence indicating that an asset may be impaired,
recoverable amount shall be estimated for impairment test. Goodwill, intangible assets with an indefinite
useful life and intangible assets beyond working conditions will be tested for impairment annually,
regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount,
the impairment provision will be made according to the difference and recognized as an impairment loss.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present
value of the future cash flows expected to be derived from the asset. An asset‘s fair value is the price in a
sale agreement in an arm‘s length transaction. If there is no sale agreement but the asset is traded in an
active market, fair value shall be determined based on the bid price. If there is neither sale agreement nor
active market for an asset, fair value shall be based on the best available information. Costs of disposal are
expenses attributable to disposal of the asset, including legal fee, relevant tax and surcharges,
transportation fee and direct expenses incurred to prepare the asset for its intended sale. The present value
of the future cash flows expected to be derived from the asset over the course of continued use and final
disposal is determined as the amount discounted using an appropriately selected discount rate. Provisions
for assets impairment shall be made and recognized for the individual asset. If it is not possible to estimate
the recoverable amount of the individual asset, the Group shall determine the recoverable amount of the
asset group to which the asset belongs. The asset group is the smallest group of assets capable of
generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the
financial statements shall be allocated to the asset groups or group of assets benefiting from synergy of
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business combination. If the recoverable amount is less than the carrying amount, the Group shall
recognize an impairment loss. The amount of impairment loss shall first reduce the carrying amount of any
goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of other
assets (other than goodwill) within the asset group or set of asset groups, pro rata on the basis of the
carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in
respect of the restorable value.
21. Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other
long-term employee benefits, among which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits,
medical insurance, maternity insurance, work related injury insurance, housing funds, labor unit fee and
education fee, non-monetary benefits, etc. short term staff remuneration actually happened during the
accounting period in which staff provides services to the Company is recognized as liability, and shall be
included in current gains and losses or relevant asset cost. Non-monetary benefits are measured at fair
value.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw
plan mainly includes basic pension insurance, unemployment insurance and annuity, and the contribution
payable is included in relevant asset cost or current gains and losses when occurs. Our defined benefit plan
mainly relates to retirement benefits. The Company engaged independent actuary to make estimation on
demographic variables and financial variables under predicted accumulative benefits unit method with
unbiased and consistent actuary assumption, measure liabilities arising from defined benefit plan and
determine vesting periods of various liabilities. On balance sheet date, the Company presented liabilities
arising from defined benefit plan at present value, and recorded service costs as profit or loss for the
period.
When the Company terminates the employment relationship with employees before the end of the
employment contracts or provides compensation as an offer to encourage employees to accept voluntary
redundancy, the Company shall recognize employee compensation liabilities arising from compensation
for staff dismissal and included in profit or loss for the current period, when the Company cannot revoke
unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee
redundant proposals; and the Company recognize cost and expenses related to payment of compensation
for dismissal and restructuring, whichever is earlier. However, if the compensation for termination of
employment is not expected to be fully paid within 12 months from the reporting period, it shall be
accounted for other long-term staff remuneration.
Employee internal retirement plans is to use the same principle to deal with termination benefits. The
group will pay staff salary, social insurance and others from the date they stop providing service to their
retire-day. This amount shall be included in the current profits and losses (termination benefits), only when
it meets the projected liabilities confirmation conditions.
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For other long-term employee benefits provided by the Company to its employees, if satisfy with the
established withdraw plan, then the benefits are accounted for under the established withdraw plan,
otherwise accounted for under defined benefit scheme.
22. Accrual liability
The obligation pertinent to contingencies shall be recognized as accrual liability when the following
conditions are satisfied simultaneously: (1) That obligation is a current obligation of the Group; (2) It is
likely to cause any economic benefit to flow out of the enterprise as a result of performance of the
obligation; and (3) The amount of the obligation can be measured in a reliable way.
At the balance sheet date, considering matters related to risks, uncertainties and time value of money and
other factors, the expected liabilities are measured in accordance with the best estimate of the necessary
expenses for the performance of the current obligation.
If the expenditure required paying all or part of the expected liabilities was compensated by the third party,
and the amount of compensation basically can be sure when received, it could be recognized as a separate
asset. But the amount of compensation confirmed couldn‘t be more than the book value of the estimated
debts.
(1)Contract in loss
Contract in loss is identified when the inevitable cost for performance of the contractual obligation
exceeds the inflow of expected economic benefits. When a contract in loss is identified and the obligations
thereunder are qualified by the aforesaid recognition criterion for contingent liability, the difference of
estimated loss under contract over the recognized impairment loss (if any) of the subject matter of the
contract is recognized as projected liability.
(2)Restructuring obligations
For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the
restructuring are recognized as contingent liabilities, provided that the aforesaid recognition criterion for
contingent liability is met. In respect of restructuring obligations which involve disposal of partial business,
such obligations may be recognized in relation to restructuring only when the Company undertakes to
dispose partial business, namely its execution of binding disposal agreement.
23. Share-based payment
(1) Accounting treatment
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined
on the basis of an equity instrument in order to obtain employees or services from other parties.
Share-based payments are divided into equity-settled share-based payments and cash-settled share-based
payments.
① Equity-settled share-based payment
The equity-settled share-based payment in exchange for the services provided by the employees is
measured at the fair value on the date of granting equity instrument to employees. When the amount of the
fair value can only be vested with rights after completing the services in the waiting period or reaching the
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stipulated performance, based on the optimal estimate of the number of vesting equity instruments in the
waiting period, it is calculated by the straight-line method and included in the relevant costs or expenses/ it
is included in the relevant costs or expenses on the grant date when the vesting right is granted
immediately after the grant, and the capital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate based on the
follow-up information such as the latest changes in the number of employees with vesting rights, and
corrects the number of equity instruments that are expected to be vested. The impact of the above
estimates is included in the current related costs or expenses, and the capital reserve is adjusted
accordingly.
For an equity-settled share-based payment in exchange for other parties' services, if the fair value of other
parties' services can be reliably measured, it is measured at the fair value of other parties' services on the
grant date; if the fair value of other parties' services cannot be reliably measured but the fair value of
equity instrument can be measured reliably, it is measured at the fair value of the equity instrument on the
grant date, and is included in the relevant cost or expense, and increases the shareholders' equity
accordingly.
When the fair value of the granted equity instrument cannot be measured reliably, it is measured at the
intrinsic value of the equity instrument on the grant date of services, each subsequent balance sheet date
and the settlement date, and the changes in intrinsic value are included in current profit and loss.
② Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities determined based on
shares or other equity instruments assumed by the Company. If the vesting right is granted immediately
after the grant, it is included in the relevant costs or expenses on the grant date, and the liabilities are
increased accordingly;
If the vesting right is available only after completing the services in the waiting period or reaching the
stipulated performance, on each balance sheet date of the waiting period, based on the optimal estimate of
the vesting right, include the services obtained in the current period in costs and expenses according to the
amount of the fair value of the liabilities assumed by the Company, and the liabilities are increased
accordingly.
The fair value of the liability is re-measured at each balance sheet date and settlement date before the
settlement of related liabilities, and its changes are included in current profit and loss.
(2) Relevant accounting treatment of modifying and terminating the share-based payment plan
When the Company modifies the share-based payment plan, if the modification increases the fair value of
the equity instruments granted, the increase in obtained services is recognized accordingly based on the
increase in the fair value of equity instruments. The increase in the fair value of equity instruments refers
to the difference between the fair value of the equity instruments on the modification date before and after
the modification. If the modification reduces the total fair value of the share-based payment or adopts
other methods that are not conducive to the employees, the services obtained will continue to be accounted
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for, as if the change has never occurred, unless the Company cancels some or all of the granted equity
instruments
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the
granted equity instrument as an accelerated exercise, and the amount to be recognized in the remaining
waiting period will be immediately included in the current profit and loss, and the capital reserve will be
recognized. If the employee or other party can choose to meet the non-vesting conditions but fails to meet
during the waiting period, the Company will treat it as a cancellation of the granted equity instrument.
(3) Accounting treatment involving share-based payment transactions between the Company and the
shareholders or actual controllers of the Company
In respect of the share-based payment transaction between the Company and the shareholders or actual
controllers of the Company, if one of the settlement enterprise and the service receiving enterprise is
within the consolidation scope of the Company, and the other is outside the consolidation scope of the
Company, the following rules are used for accounting treatment in the consolidated financial statements of
the Company:
① If the settlement enterprise settles by its own equity instrument, the share-based payment transaction
shall be treated as the equity-settled share-based payment; otherwise, it shall be treated as a cash-settled
share-based payment.
If the settlement enterprise is an investor of the service receiving enterprise, it shall be recognized as the
long-term equity investment of the service receiving enterprise according to the fair value of the equity
instrument at the grant date or the fair value of the liability to be assumed, and the capital reserve (other
capital reserve) or liabilities shall be recognized at the same time.
② If the service receiving enterprise has no settlement obligation or grants its own equity instruments to
its employees, the share-based payment transaction shall be treated as equity-settled share-based payment;
if the service receiving enterprise has settlement obligation and the equity instrument it grants to the
employees is not its own equity instrument, the share-based payment transaction shall be treated as a
cash-settled share-based payment.
For an share-based payment transaction between the enterprises within the consolidation scope of the
Company, if the service receiving enterprise and the settlement enterprise are not the same enterprise, the
share-based payment transaction shall be respectively recognized and measured in the individual financial
statements of the service receiving enterprise and the settlement enterprise, which is handled according to
above principles.
24. Other financial instruments such as preferred stocks and perpetual bonds
(1) Distinction between perpetual bonds and preferred stocks
Financial instruments such as perpetual bonds and preferred stocks issued by the Company are used as
equity instruments when meet the following conditions at the same time:
①The financial instrument does not include contractual obligations to deliver cash or other financial assets
to other parties or to exchange financial assets or financial liabilities with other parties under potentially
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adverse conditions;
② If the financial instrument has to use or can use the enterprise‘s own equity instruments for settlement,
and if the financial instrument is a non-derivative instrument, it does not include the contractual obligation
to deliver its own equity instruments with variable amount for settlement; if the financial instrument is a
derivative instrument, then the Company can only settle the financial instrument by exchanging a fixed
amount of cash or other financial assets with a fixed amount of its own equity instruments.
Except for financial instruments that can be classified as equity instruments under the above conditions,
other financial instruments issued by the Company should be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they are
recognized as a liability based on the fair value of the liability component, and are recognized as ―other
equity instruments‖ based on the amount actually received after deducting the fair value of the liability
component. The transaction costs incurred in issuing a compound financial instrument are apportioned
between the liability component and the equity component in proportion to their respective total issue
price.
(2) Accounting treatment methods of perpetual bonds and preferred stocks
Financial instruments such as perpetual bonds and preferred stocks classified as financial liabilities, their
related interest, dividends, gains or losses, and gains or losses arising from redemption or refinancing are
included in the current profit and loss, except for borrowing costs eligible for capitalization (see Note IV,
17 ―Borrowing Costs‖).
When financial instruments such as perpetual bonds and preferred stocks classified as equity instruments
are issued (including refinancing), repurchased, sold or cancelled, the Company shall treat as a change in
equity, and related transaction costs are also deducted from equity. The Company treats the allocation to
the holders of equity instruments as a profit distribution.
The Company does not recognize changes in the fair value of equity instruments.
25. Income
(1) Income of commodities sales
When the transfer of significant risks and rewards of ownership of the goods to the buyer is done, when
the right of management usually associated with ownership is not reserved, when we didn‘t effectively
control the goods sold, the amount of revenue can be measured reliably. The associated economic benefits
are likely to flow into the enterprise. And the related costs incurred or to be incurred can be measured in a
reliable way. Thus we realize sales income.
The company engages in sales of cars, confirming income after the vehicle delivery to customers
according to agreement, payment received or the rights to receive payment.
Revenue from sale of jewelry of the Company is classified into retail revenue and wholesale revenue
based on way of sales. Retail revenue is recognized upon the commodity is delivered to consumers with
receipt of goods payment. Wholesale revenue is recognized when the commodity is delivered to customers,
signed by the customers for receipt of the goods and the Company receives goods payment or the voucher
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to ask for the goods payment.
(2) Income from providing labor
On condition that provision of services trade results can be reliably estimated, we confirm income from
providing labor on the balance sheet date according to the percentage of completion. The completion
progress of a labor transaction is determined by the measurement of the work done/ the proportion of the
provided labor service in the total labor service to be provided/ the proportion of the labor cost incurred in
the estimated total cost.
The results of labor transaction provided can be estimated reliably only when simultaneously: ①the
amount of revenue can be measured reliably; ②the economic interests are likely to flow into the
enterprise; ③the degree of completion can be reliably determined; ④cost occurred and to be occurred
can be reliably measured.
If the service transaction results couldn‘t be able to reliably estimated, labor income will be calculated
according to according to amount of labor costs which has occurred and is expected to be t compensated,
and labor costs occurred would be included as expenses of the current period. Labor cost occurred which
cannot be compensated will not be included as revenue, labor cost incurred are reckoned into current
gain/loss.
When the contract or agreement signed by the Company with other enterprises includes the sale of goods
and the provision of labor services, if the sale of goods and the provision of labor services can be
distinguished and separately measured, the sales of goods and the provision of labor services are handled
separately; If the sale of goods and the provision of labor services cannot be distinguished, or if they can
be distinguished but cannot be separately measured, the contract is all treated as a sales item.
(3) Use fee income
According to the relevant contract or agreement, revenue is recognized in accordance with the accrual
basis.
(4) Interest income
Interest income is confirmed in accordance with time and actual interest others make use of the monetary
capital of the group
26. Government subsidy
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the
government, not including the capital and owners‘ equity shares invested by government as a investor.
Government subsidies consist of the government subsidies pertinent to assets and government subsidies
pertinent to income. Government grant obtained by the Company for the purpose of constructing or
otherwise forming long term assets is recognized as government grant related to assets, and other
government grants are recognized as those related to income. If government document fails to identify
specific grantee, government grants will be categorized into government grants related to income or assets
respectively under the below method: (1) in case government document indicates the specific project
applicable to the grant, such categorization shall be made based on the respective proportion of
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expenditures to form assets or be recorded as expenses in budget for the specific project. The allocation
proportion will be reviewed on each balance sheet date, and is subject to necessary alteration; (2) in case
government document only indicate general purpose of such grant instead of specific project, the grant
shall be viewed as government grant related to income. The government subsidy with monetary assets
concerned should be measured by the actual received or receivable amount while non-monetary assets
government subsidy measured by fair value; if without realizable fair value obtained, measured by
nominal amount instead. The government subsidy with nominal amount measured should reckon into
current gains and losses.
Government grants are generally recognized when received and measured at the amount actually received,
but are measured at the amount likely to be received when there is conclusive evidence at the end of the
accounting period that the Group will meet related requirements of such grants and will be able to receive
the grants. The government grants so measured should also satisfy the following conditions: (1) the
amount of the grants be confirmed with competent authorities in written form or reasonably deduced from
related requirements under financial fund management measures officially released without material
uncertainties; (2) the grants be given based on financial support projects and fund management policies
officially published and voluntarily disclosed by local financial authorities in accordance with the
requirements under disclosure of government information, where such policies should be open to any
company satisfying conditions required and not specifically for certain companies; (3) the date of payment
be specified in related documents and the payment thereof be covered by corresponding budget to ensure
such grants will be paid on time as specified; and (4)other relevant conditions which shall be met based on
the specific situations of the Company and the subject matter.
Asset-related government subsidies are recognized as deferred income and accounted into the current
gains/losses equally within service life for the relevant assets. The government subsidies pertinent to
incomes, which are used for compensating the related future expenses or losses of the enterprise shall be
recognized as deferred income and should reckoned into current gains/losses in period of when relevant
expenses are recognized; if used for compensating the occurred relevant expenses and losses, reckoned
into current gains/losses directly.
Government subsidies related to assets and revenue is included at the same time, which are classified into
different sections and respectively for accounting treatment; for the other indistinguishable sections, they
are all classified into the government subsidies related to revenue as a whole.
The government subsidies related to daily activities of the company is classified into other revenue
according to the economic business substance; the government subsidies not related to daily activities, is
classified into nonbusiness revenue.
As for the recognized government subsidy needs to return, if there has relevant balance of deferred
incomes, relevant book balance of the deferred income should be written down, and the exceeded part
should included in the current gains/losses; if they belongs to other conditions, reckoned into current
gains/losses directly.
27. Deferred income tax assets and deferred income tax liabilities
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(1) The current income tax
At the balance sheet date, for the current income tax liabilities (or assets) arising during the current and
previous periods, current income tax should be calculated in line with expected payable (or return) income
tax amount in accordance with the provisions of the tax law. Calculation of the current income tax
expenses on the basis of the computation of taxable income is adjusted to the pre-tax accounting profit
according to the relevant provisions of the tax law.
(2) The deferred income tax assets and deferred income tax liabilities
As for the balance between the book value of some assets and liabilities and the tax base, and those
temporary difference arisen from balance which is not recognized as an asset or liability but whose
difference between the book value and tax base could be calculable in accordance with the provisions of
the tax law, we adopt debt method of balance sheet to recognize deferred income tax assets and deferred
income tax liabilities.
As for taxable temporary differences which is arisen from initial recognition of goodwill, and those related
to initial recognition of assets or liabilities arisen during trade with neither merging nor those which won‘t
affect the accounting profit and taxable income (or deductible loss), related deferred tax liabilities will not
be confirmed. In addition, as for temporary differences taxable related to subsidiary companies, associated
enterprises and joint venture investment, if the group is able to control the reversal time of the temporary
difference, and the temporary differences in the foreseeable future probably will not be reversed, we also
could not confirm the deferred income tax liabilities. In addition to the above condition, the group could
confirm all the other deferred income tax liabilities arising from taxable temporary differences.
As for deductible temporary differences related to initial reorganization of asset or liability arising from
trades with neither merge nor those which won‘t affect the accounting profit and taxable income (or
deductible loss), we‘ll not recognize relevant deferred income tax assets. In addition, as for deductible
temporary differences related to subsidiary companies, associated enterprises and joint venture investment,
if the temporary differences in the foreseeable future probably will not be reversed, we also could not
confirm the deferred income tax assets. In addition to the above condition, the group could confirm all the
other deferred income tax assets arising from deductible temporary differences within benchmark of
income of taxable deductible temporary differences.
As for deductible loss or tax deduction which to be reversed in the following years, we confirm the
corresponding deferred income tax assets within benchmark of future taxable income to be likely deducted
for deductible loss and tax deduction.
On the balance sheet date, the deferred income tax assets and liabilities are measured according to the
provisions of the tax law, in accordance with the applicable tax rate during related assets to be expected
recovery or related liabilities to be paid off.
At the balance sheet date, we recheck the book value of deferred income tax assets. If in future it is
unlikely to obtain adequate taxable income to offset the benefit of the deferred income tax asset, then we
write down the book value of deferred income tax assets. When it is probable to obtain adequate taxable
income, amount written down shall be reversed.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(3) The income tax expenses
The income tax expense included the current income tax and deferred income tax.
In addition to trades and current income tax and deferred income tax related to projects which are included
in other comprehensive income or directly included in owners‘ interest, as well as the book value whose
goodwill arranged in line with deferred income tax arising from enterprises combination, all the other
current income tax and deferred income tax expenses or income will be included in current profit and loss.
(4) Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to
realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are
offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax
assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the
same taxable entity or different taxable entities which intend either to settle current tax assets and
liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in
which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax
assets and deferred tax liabilities are offset and presented on a net basis.
28. Leasing
Finance lease transfers substantially all the risks and rewards related to the ownership of an asset. Its
ownership may eventually transfer, also may not. While all the other leases are classified as operating
leases.
(1) The Company keeps record of lease business as lessee
Rental expense of operating lease is included in the relevant asset costs or current profits and losses
through the straight-line method during every period. Initial direct costs shall be included in profit or loss
for the current period. Or rent to the actual shall be included in the current profits and losses.
(2) The Company keeps record of lease business as lessor
Rental income of operating lease is included in the relevant asset costs or current profits and losses
through the straight-line method during every period. The larger amount of initial direct costs shall be
capitalized when it is created, and shall be included in the current profits and losses during the lease period
in accordance with same basic as the confirmed amount by stages. The other small amount of initial direct
costs shall be included in the current profits and losses when it‘s created. Or rent to the actual shall be
included in the current profits and losses.
(3) Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of
the leased asset and the present value of minimum lease payment at the beginning date of the lease.
Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. In addition, initial direct costs attributable to leased items
incurred during the process of lease negotiation and signing of lease agreement shall be included in the
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
value of leased assets. The balance of minimum lease payment after deducting unrecognized financing
expenses shall be accounted for long-term liability and long-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using
effective interest method during the leasing period. Contingent rent shall be included in profit or loss for
the current period at the time it incurred.
(4) Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum
lease receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be
recorded. The aggregate of minimum lease receivable, initial direct costs and unsecured balance and the
different between their present value shall be recognized as unrealized financing income. The balance of
lease receivable after deducting unrecognized financing income shall be accounted for long-term debt and
long-term debt due within one year.
Unrecognized financing income shall be recognized as financing income for the current period using
effective interest method during the leasing period. Contingent rent shall be included in profit or loss for
the current period at the time it incurred.
29. Other significant accounting policies and accounting estimation
(1) Discontinued operation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and
presented separately under operation segments and financial statements, which has fulfilled one of the
following criteria: ① it represents an independent key operation or key operating region; ② it is part of
the proposed disposal plan on an independent key operation or proposed disposal in key operating region;
or ③ it only establishes for acquisition of subsidiary through disposal.
Accounting for discontinued operation is set out in note IV 12 ―classified as assets or assets group held for
sale‖.
30. Changes of major accounting policies and accounting estimation
(1) Changes of accounting policy
①Changes in accounting policies for execution of the new financial instrument standards
On March 31, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.
22 - Recognition and Measurement of Financial Instruments (Revised in 2017) (CK [2017] No. 7) and
Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets (Revised in 2017)
(CK [2017] No. 8), Accounting Standards for Business Enterprises No. 24 - Hedge Accounting (Revised in
2017) (CK [2017] No. 9) respectively, and issued Accounting Standards for Business Enterprises No. 37 –
Financial Instruments Presentation (Revised in 2017) (CK [2017] No. 14) on May 2, 2017 (the
above-mentioned standards are collectively referred to as the ―New Financial Instruments Standards‖),
domestic listed companies are required to implement the new financial instrument standards since 1 Jan.
2019.
Approved by the resolution of 2nd session of 9th BOD dated 1 April 2019, the Company will implement the
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
above mentioned new financial instrument standards since 1 Jan. 2019.
All recognized financial assets under the new financial instrument standard are subsequently measured at
amortized cost or fair value. On the implementation date of the new financial instrument standard, the
business model of managing financial assets is evaluated based on the facts and circumstances of the
Company on the day, and the contractual cash flow characteristics of the financial assets are evaluated
based on the facts and circumstances at the initial recognition of the financial assets. Financial assets are
classified into three categories: those measured at amortized cost, those measured at fair value and the
changes are included in other comprehensive income, and those measured at fair value and the changes are
included in current profit or loss. Among them, for the equity instrument investment measured at fair value
and whose changes are included in other comprehensive income, when the financial asset is derecognized,
the accumulated gain or loss previously included in other comprehensive income shall be transferred from
other comprehensive income to retained earnings, but not included in the current profit and loss.
Under the new financial instrument standard, the Company makes the impairment provision and confirms
the credit impairment losses for financial assets measured at amortized cost, debt instrument investments
measured at fair value and whose changes are included in other comprehensive income, lease receivables,
contract assets and the financial guarantee contracts based on expected credit losses.
The Company traces the application of the new financial instrument standards, but the Company chooses
not to restate the classification and measurement (including impairment) involving the inconsistency
between the previous comparative financial statement data and the new financial instrument standards.
Therefore, for the cumulative impact of the implementation of the standard for the first time, the Company
adjusted the retained earnings or other comprehensive income at the beginning of 2019 and the amount of
other related items in the financial statements, and the financial statements for 2018 didn‘t restate it.
The main changes and impacts of the implementation of the new financial instruments standards on the
Company are as follows:
Some non-trading equity investments held by the Company on or after January 1, 2019 are designated as
financial assets measured at fair value and whose changes are included in other comprehensive income,
and are presented as other equity instrument investments.
A- Category and measuring contrast of the financial instrument after/before the date when initially
implementation
a- impact on consolidate financial statement
2018-12-31(before change) 2019-1-1(after change)
Item Measurement Book value Item Measurement Book value
category category
Measured by fair
Measured by Other equity
Available-for-sale value and with its
cost (equity 10,176,617.20 instrument 10,176,617.20
financial assets variation reckoned
instrument) investment
into other
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
2018-12-31(before change) 2019-1-1(after change)
Item Measurement Book value Item Measurement Book value
category category
comprehensive
income
Measured by
fair value and Measured by fair
with its value and with its
Other current Trading
variation 330,400,000.00 variation reckoned 330,400,000.00
assets financial assets
reckoned into into current
current gain/loss
gain/loss
b-impact on financial statement of the Company
2018-12-31(before change) 2019-1-1(after change)
Item Measurement Book value Item Measurement Book value
category category
Measured by fair
value and with its
Measured by Other equity variation
Available-for-sale
cost (equity 10,176,617.20 instrument reckoned into 10,176,617.20
financial assets
instrument) investment other
comprehensive
income
Measured by
fair value and Measured by fair
with its value and with its
Other current Trading
variation 195,000,000.00 variation 195,000,000.00
assets financial assets
reckoned into reckoned into
current current gain/loss
gain/loss
B- On first implementation day, adjustment statement of the category and measurement for former
financial instrument and those adjusted with new financial instrument standards
a- impact on consolidate statement
2018-12-31(befor 2019-1-1(after
Item Re-classified Re-measured
e change) change)
Measured by fair value and with its
variation reckoned into other
comprehensive income:
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
2018-12-31(befor 2019-1-1(after
Item Re-classified Re-measured
e change) change)
Available-for-sale financial assets
10,176,617.20
(former standard)
Less: transfer to other equity
10,176,617.20
instrument investment
Balance under new financial instrument
standard
Other equity instrument investment ——
Add: transfer in from available-for-sale
10,176,617.20 10,176,617.20
financial assets (former standard)
Balance under new financial instrument
10,176,617.20
standard
Measured by fair value and with its
variation reckoned into current
gain/loss:
Other current assets 332,432,494.44
Less: transfer to trading financial assets 330,400,000.00
Balance under new financial instrument
2,032,494.44
standard
Trading financial assets ——
Add: transfer-in from other current
330,400,000.00
assets
Balance under new financial instrument
330,400,000.00
standard
b-impact on financial statement of the Company
111
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
2018-12-31(befor 2019-1-1(after
Item Re-classified Re-measured
e change) change)
Measured by fair value and with its
variation reckoned into other
comprehensive income:
Available-for-sale financial assets
10,176,617.20
(former standard)
Less: transfer to other equity
10,176,617.20
instrument investment
Balance under new financial instrument
standard
Other equity instrument investment ——
Add: transfer in from available-for-sale
10,176,617.20 10,176,617.20
financial assets (former standard)
Balance under new financial instrument
10,176,617.20
standard
Measured by fair value and with its
variation reckoned into current
gain/loss:
Other current assets 195,506,958.35
Less: transfer to trading financial assets 195,000,000.00
Balance under new financial instrument
506,958.35
standard
Trading financial assets ——
Add: transfer-in from other current
195,000,000.00
assets
Balance under new financial instrument 195,000,000.00
112
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
2018-12-31(befor 2019-1-1(after
Item Re-classified Re-measured
e change) change)
standard
C- On first implementation day, adjustment on the impairment provision for financial assets
a- impact on consolidate statement
2018-12-31(before 2019-1-1(after
Measurement category Re-classified Re-measured
change) change)
Amortized cost:
Impairment of
20,000.00 20,000.00
held-to-maturity investment
Measured by fair value and
with its variation reckoned
into other comprehensive
income(equity instrument) :
Impairment provision for
—— 20,000.00 20,000.00
other creditors‘ investment
(2) Changes of accounting estimate
Contents, causes and applicable time points of Approval
Items impact Amount impact
accounting estimation change procedure
The Company considers the architectural design and
construction standards of newly completed buildings
and the accelerating update speed of computer
equipment, in order to make the company's
accounting estimates better conform to the actual use
of assets, more accurately reflect the period during
which assets provide economic benefits to enterprises Fixed assets, Investment real
Internal
and the actual assets consumption of every term, and
estate, main business cost, 337,023.38
more objectively and truthfully reflect the company's procedures
administrative expenses
financial status and operating results, the resolution
of the second meeting of the 9th Board of Directors of
the Company on April 1, 2019 passed that the
Company would change the service life of buildings
from 35 years to 35-40 years and change the
depreciable life of computer equipment in electronic
113
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Contents, causes and applicable time points of Approval
Items impact Amount impact
accounting estimation change procedure
equipment from 7 years to 5 years on the date of the
resolution.
(3) Adjust relevant items of financial statements at beginning of the year of fist execution, when
first implemented the new financial instrument standards, new income standards and new leasing
standards
√Applicable □ Not applicable
Consolidate balance sheet
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary fund 169,512,260.69 169,512,260.69
Settlement provisions
Capital lent
Trading financial assets 330,400,000.00 330,400,000.00
Financial assets
measured by fair value and
with variation reckoned into
current gains/losses
Derivative financial
assets
Notes receivable
Accounts receivable 86,104,660.51 86,104,660.51
Receivables financing
Accounts paid in
9,112,473.27 9,112,473.27
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
14,483,208.41 14,483,208.41
receivable
Including: interest
723,407.50 723,407.50
receivable
Dividend
232,683.74 232,683.74
receivable
Buying back the sale of
114
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
financial assets
Inventories 12,342,854.40 12,342,854.40
Contract assets
Assets held for sale 85,017,251.77 85,017,251.77
Non-current asset due
within one year
Other current assets 332,432,494.44 2,032,494.44 -330,400,000.00
Total current assets 709,005,203.49 709,005,203.49
Non-current assets:
Loans and payments on
behalf
Creditors‘ investment
Available-for-sale
10,176,617.20 -10,176,617.20
financial assets
Other creditors‘
investment
Held-to-maturity
investment
Long-term account
0.00
receivable
Long term equity
224,644,766.21 224,644,766.21
investment
Other equity instrument
10,176,617.20 10,176,617.20
investment
Other non-current
financial assets
Investment real estate 503,922,413.70 503,922,413.70
Fixed assets 112,674,017.53 112,674,017.53
12,843,571.97 12,843,571.97
Construction-in-progress
Productive biological
asset
Oil and gas asset
Right-of-use asset
Intangible assets 51,012,282.25 51,012,282.25
Expense on Research
and Development
Goodwill
Long-term prepaid 6,304,607.22 6,304,607.22
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
expenses
Deferred income tax
24,355,086.71 24,355,086.71
asset
Other non-current asset 3,356,964.72 3,356,964.72
Total non-current asset 949,290,327.51 949,290,327.51
Total assets 1,658,295,531.00 1,658,295,531.00
Current liabilities:
Short-term loans 143,000,000.00 143,000,000.00
Loan from central bank
Capital borrowed
Trading financial
liability
Financial liability
measured by fair value and
with variation reckoned into
current gains/losses
Derivative financial
liability
Notes payable
Accounts payable 73,365,876.09 73,365,876.09
Accounts received in
15,897,763.97 15,897,763.97
advance
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of
agency
Security sales of agency
Wage payable 25,802,670.36 25,802,670.36
Taxes payable 9,377,393.57 9,377,393.57
Other accounts payable 250,489,094.47 250,489,094.47
Including: interest
290,215.78 290,215.78
payable
Dividend
payable
Commission charge and
commission payable
Reinsurance payable
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Contract liability
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 517,932,798.46 517,932,798.46
Non-current liabilities:
Insurance contract
reserve
Long-term loans 34,934,887.55 34,934,887.55
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
3,920,160.36 3,920,160.36
payable
Long-term wages
payable
Accrual liability 2,225,468.76 2,225,468.76
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 41,080,516.67 41,080,516.67
Total liabilities 559,013,315.13 559,013,315.13
Owners‘ equity:
Share capital 297,281,600.00 297,281,600.00
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital reserve 565,226,274.51 565,226,274.51
Less: Inventory shares
Other comprehensive
26,422.00 26,422.00
income
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Reasonable reserve
Surplus reserve 3,139,918.14 3,139,918.14
Provision of general risk
Retained profit 184,535,322.70 184,535,322.70
Total owner‘s equity
attributable to parent 1,050,209,537.35 1,050,209,537.35
company
Minority interests 49,072,678.52 49,072,678.52
Total owner‘s equity 1,099,282,215.87 1,099,282,215.87
Total liabilities and owner‘s
1,658,295,531.00 1,658,295,531.00
equity
Explanation
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments, the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets, Accounting Standards for Business Enterprises No. 24
- Hedge Accounting and Accounting Standards for Business Enterprises No. 37 – Financial Instruments
Presentation on 31 March 2017 and shall be effective for enterprise listed in China separately since 1 Jan.
2019
According to the new financial standards, the ―Available-for-sale financial assets ‖ is re-classified to
―Financial assets measured by fair value and with its variation reckoned into other comprehensive
income‖, and adjusted the amount of ―Available-for-sale financial assets ‖ at beginning of 2019 in
balance sheet in line with the presentation requirement.
According to the new financial standards, the financial product without principal-guaranteed was
re-classified to ―Trading financial assets‖ from ―Other current assets‖, and adjusted the amount of
―Other current assets ‖ at beginning of 2019 in balance sheet in line with the presentation requirement.
Balance sheet of parent company
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary fund 88,836,626.14 88,836,626.14
Trading financial assets 195,000,000.00 195,000,000.00
Financial assets
measured by fair value and
with variation reckoned into
current gains/losses
Derivative financial
liability
Notes receivable
Accounts receivable 38,274.00 38,274.00
Receivables financing
Accounts paid in 604,800.00 604,800.00
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
advance
Other account
115,782,944.37 115,782,944.37
receivable
Including: interest
723,407.50 723,407.50
receivable
Dividend
232,683.74 232,683.74
receivable
Inventories
Contract assets
Assets held for sale 85,017,251.77 85,017,251.77
Non-current asset due
within one year
Other current assets 195,506,958.35 506,958.35 -195,000,000.00
Total current assets 485,786,854.63 485,786,854.63
Non-current assets:
Creditors‘ investment
Available-for-sale
10,176,617.20 -10,176,617.20
financial assets
Other creditors‘
investment
Held-to-maturity
investment
Long-term account
receivable
Long term equity
836,283,491.38 836,283,491.38
investment
Other equity instrument
10,176,617.20 10,176,617.20
investment
Other non-current
financial assets
Investment real estate 44,820,151.69 44,820,151.69
Fixed assets 14,824,845.14 14,824,845.14
12,843,571.97 12,843,571.97
Construction-in-progress
Productive biological
asset
Oil and gas asset
Right-of-use asset
Intangible assets 249,731.94 249,731.94
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Expense on Research
and Development
Goodwill
Long-term prepaid
2,958,817.65 2,958,817.65
expenses
Deferred income tax
13,830,369.64 13,830,369.64
asset
Other non-current asset
Total non-current asset 935,987,596.61 935,987,596.61
Total assets 1,421,774,451.24 1,421,774,451.24
Current liabilities:
Short-term loans 143,000,000.00 143,000,000.00
Trading financial
liability
Financial liability
measured by fair value and
with variation reckoned into
current gains/losses
Derivative financial
liability
Notes payable
Accounts payable 19,800.00 19,800.00
Accounts received in
4,742.51 4,742.51
advance
Contract liability
Wage payable 4,858,788.51 4,858,788.51
Taxes payable 331,909.65 331,909.65
Other accounts payable 392,558,990.89 392,558,990.89
Including: interest
232,810.41 232,810.41
payable
Dividend
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 540,774,231.56 540,774,231.56
Non-current liabilities:
Long-term loans
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities 540,774,231.56 540,774,231.56
Owners‘ equity:
Share capital 297,281,600.00 297,281,600.00
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital reserve 562,032,851.23 562,032,851.23
Less: Inventory shares
Other comprehensive
income
Reasonable reserve
Surplus reserve 3,139,918.14 3,139,918.14
Retained profit 18,545,850.31 18,545,850.31
Total owner‘s equity 881,000,219.68 881,000,219.68
Total liabilities and owner‘s
1,421,774,451.24 1,421,774,451.24
equity
Explanation
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No. 23 -
Transfer of Financial Assets, Accounting Standards for Business Enterprises No. 24 - Hedge Accounting
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
and Accounting Standards for Business Enterprises No. 37 – Financial Instruments Presentation on 31
March 2017 and shall be effective for enterprise listed in China separately since 1 Jan. 2019
According to the new financial standards, the ―Available-for-sale financial assets ‖ is re-classified to
―Financial assets measured by fair value and with its variation reckoned into other comprehensive income‖,
and adjusted the amount of ―Available-for-sale financial assets ‖ at beginning of 2019 in balance sheet in
line with the presentation requirement.
According to the new financial standards, the financial product without principal-guaranteed was
re-classified to ―Trading financial assets‖ from ―Other current assets‖, and adjusted the amount of ―Other
current assets ‖ at beginning of 2019 in balance sheet in line with the presentation requirement.
(4) Retrospective adjustment of early comparative data for the first implementation of new financial
standards and new lease standards
□Applicable √ Not applicable
31. Significant accounting judgment and estimation
The Company need make judgment, estimation and hypothesis to book value of those unaccountable items
in sheet due to inner uncertainties of operating activities in the process of using accounting policies. These
judgments, estimates and assumptions are made in line with the Company's past management experience,
and in consideration of other relevant factors. These judgments, estimates and assumptions will affect
disclosure of amount of income, expenses, assets and liabilities as well as contingent liability on the
balance sheet day. However, the uncertainties in these estimates may cause significant adjustments to book
value of those asset or liability affected in the future.
The Company rechecks regularly the judgment, estimation and hypothesis based on sustainable
management. As for a change affecting only the current period, the amount shall be confirmed only in the
current period; for those not only affecting the current but the future, the amount shall be confirmed in the
current and future period.
At the balance sheet date, the Company needs to determine amount of items of the financial statements,
estimation and hypothesis shown as the following important areas:
(1)Classification of leases
The Company classifies its leases as operating lease and financing lease in accordance with ―Accounting
Standard for Business Enterprises No. 21 - Leases‖. When classifying leases, the management needs to
analyse and judge whether all risks and returns relating to the ownership of leased out assets have
transferred to the leasee, or whether the Company has obliged to all risks and returns relating to the
ownership of leased assets.
(2) Impairment of financial assets
The Company uses the expected credit loss model to assess the impairment of financial instruments. The
application of the expected credit loss model requires significant judgment and estimation, and all
reasonable and evidenced information, including forward-looking information, needs to be considered.
When making such judgments and estimates, the Company infers the expected changes in the debtor's
credit risk based on historical data and combined with economic policies, macroeconomic indicators,
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
industry risks, external market environment, technological environment, changes in customer
circumstances, and so on.
(3) Provision of inventory devaluation
According to the inventory accounting policies, the Company shall accrue inventory devaluation provision
as for inventory whose cost is higher than net realizable and those obsolete or unmarketable in accordance
with the lower one in cost and net realizable value. Write-down of inventories to net realizable value is to
assess the salability and net amount of prospect realization. Identification of inventory impairment requires
management‘s judgment and estimation after their obtaining conclusive evidence and consideration of the
purpose for holding inventories, events effects occurring after balance sheet date. The difference between
actual results and original estimates will affect the reversal of book value and devaluation provision of
inventories during the estimation was changing.
(4) Fair value of financial instruments
For a financial instrument that does not have an active trading market, the Company determines its fair
value through various valuation methods. These valuation methods include discounted cash flow model
analysis and so on. At the time of valuation, the Company needs to estimate future cash flow, credit risk,
market volatility and correlation, and choose an appropriate discount rate. These related assumptions are
uncertain and their changes will have an impact on the fair value of the financial instrument. If an equity
instrument investment or contract has a public offer, the Company does not use the cost as the best
estimate of its fair value.
(5) Impairment of long term assets provision
The Company has checked if there is any sign that the long-term asset except for the financial assets may
have the impairment at the balance sheet date. For the intangible assets with uncertain service life, in
addition to the annual impairment test, make the impairment test when it has signs of impairment. Proceed
with the impairment test when there is any sign indicates that the book amounts of other long-term assets
except for the financial assets are uncollectible
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher one
between the net amount after subtracting the disposal costs from the fair value and the present value of the
future cash flow, it indicates impairment occurs.
The net amount after subtracting the disposal costs from the fair value is determined by subtracting the
incremental costs directly attributable to this disposal of assets from the sales agreement price similar to
assets in fair dealing or the observable market price.
When predicting the present value of future cash flows, it is required to make significant judgments to the
output, selling price and related operating expenses of this asset or group of assets and the discount rate
used for calculating the present value. The Company shall adopt all available related data when predicting
the recoverable amounts, including making predictions about the relevant output, selling price and related
operating expenses based on reasonable and supportable assumptions.
The Company determines whether goodwill is impaired at least on an annual basis. This requires an
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
estimation of the value in use of the cash-generating units to which the goodwill is allocated. Estimating
the value in use requires the Group to make an estimate of the expected future cash flows from the
cash-generating units and also to choose a suitable discount rate in order to calculate the present value of
those cash flows.
(6) Depreciation and amortization
For the investment real estate, fixed assets and intangible assets, the Company takes a straight-line
depreciation and amortization within service life in consideration of its residual value. The Company
regularly review service life, thus determine the depreciation and amortization amount in each reporting
period. Life is determined based on past experience of similar assets and technology update is expected. If
the previous estimate changes, we will adjust depreciation and amortization expense in future periods.
(7) The deferred income tax assets
Within the limits that it is very likely to have sufficient taxable profits to offset losses, the Company
confirms deferred income tax assets using all unused tax losses. This requires the management to use a lot
of judgment to estimate the time and amount of future taxable profits, combined with the tax planning
strategy, thus confirm the amount of deferred income tax assets.
(8) The income tax
During ordinary course of business, uncertainty exists in final tax treatment and calculation of a part of
trading. Whether part of the project is in pre tax expenses requires approval of tax authorities. If the final
confirmation of these tax matters differs from an initial estimate, the difference will affect current income
tax and deferred income tax during the final period.
(9) Accrual liability
The Company estimates and accrues corresponding provision for product quality guarantee, expected
contract loss, penalty for late delivery and others in accordance with terms of the contract, existing
knowledge and experience. When such contingencies has formed a present obligation, and the
performance of the current obligation is likely to lead to the outflow of economic benefits of the Company,
the Company recognizes the best estimate of required expense when performing current obligation as
accrual liability. The recognition and measurement of debt is largely dependent on the judgment of
management. In the process of judgment the Company needs to assess the contingent risks, uncertainties
and money and the time value and other factors.
Among them, the Company estimates liabilities of the sale, maintenance and modification of after-sales
quality maintenance commitments to customers for the products sold. The Company's recent maintenance
experience data has been taken into account when estimating liabilities, but recent maintenance experience
may not be able to reflect the future maintenance. Any increase or decrease in this preparation may affect
the profit and loss of the future year.
V. Taxation
1. Main tax and tax rate
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Type Tax rate
The value-added tax for rental and water utilities income is levied at 5% and 3%
respectively; the output tax for jewelry retail and wholesale, sale of auto and
VAT components, auto repair and maintenance, electricity utilities and property
management fee are levied at 13% and 6%. Value-added tax is computed on the
difference after deduction of the deductible input tax for the period.
City maintaining & construction tax Calculated and paid on 7% of the turnover tax actually paid
Education surcharge Calculated and paid on 3% of the turnover tax actually paid
Local education surcharge Calculated and paid on 2% of the turnover tax actually paid
Corporation income tax Calculated and paid on 25% of the taxable income amount
VI. Enterprise consolidation and consolidated financial statements
Unless otherwise stated, the follow notes (including the items of financial statement of the Company),
year-begin refers to 1st January 2019 while period-end refers to 30th June 2019; End of last year refers to
31st December 2018 and Current Period refers to Jan.-Jun. 2019, Same period of last year refers to
Jan.-Jun. 2018
1. Monetary fund
Item Balance at period-end Balance at year-begin
Stock cash 89,247.55 84,099.49
Bank deposits 225,815,943.61 169,428,161.20
Total 225,905,191.16 169,512,260.69
Up to 30th June 2019, the Company‘s right to use of currency funds under restrictions is RMB
26,664,140.00, which is the supervision fund paid by the Company to Luohu District Urban Renewal
Bureau of Shenzhen for the land plot 03 project of the upgrading project of Tellus-Jimeng Gold Jewelry
Industrial Park. The currency funds with restricted use rights at the end of last year were RMB
26,664,140.00.
2. Trading financial assets
Item Balance at period-end Balance at year-begin
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Including: Derivative financial liability 139,405,600.93 330,400,000.00
Financial assets designated to be measured by fair value and
with variation reckoned into current gains/losses
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Balance at period-end Balance at year-begin
Including: Other 90,000,000.00
Total 229,405,600.93 330,400,000.00
Including: Parts that re-classified to other non-current financial
assets
3. Accounts receivable
(1) By account age
Account age Balance at period-end
Within one year 114,598,195.81
Including: within 6 months 114,598,195.81
7-12 months
Subtotal of within one year 114,598,195.81
1-2 years
2-3 years
3-4 years
4-5 years
Over 5 years 49,125,862.29
Subtotal 163,724,058.10
Less: bad debt provision 50,175,758.33
Total 113,548,299.77
(2) According to accrual method for bad debts
Balance at period-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Accrual ratio (%)
Account receivable with single significant
amount and withdrawal bad debt provision 127,492,018.45 77.87 23,552,310.56 18.47 103,939,707.89
separately
Receivables with bad debt provision
9,608,591.88 5.87 -- -- 9,608,591.88
accrual by credit portfolio
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Balance at period-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Accrual ratio (%)
Accounts with single minor amount but
with bad debts provision accrued 26,623,447.77 16.26 26,623,447.77 100.00
individually
Total 163,724,058.10 100.00 50,175,758.33 —— 113,548,299.77
(Continued)
Balance at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Accrual ratio (%)
Account receivable with single significant
amount and withdrawal bad debt 109,050,086.55 80.13 23,367,891.24 21.43 85,682,195.31
provision separately
Receivables with bad debt provision
422,465.20 0.31 -- -- 422,465.20
accrual by credit portfolio
Accounts with single minor amount but
with bad debts provision accrued 26,623,447.77 19.56 26,623,447.77 100.00 --
individually
Total 136,095,999.52 100.00 49,991,339.01 36.73 86,104,660.51
①Account receivable with single significant amount and withdrawal bad debt provision separately
at period-end
Balance at period-end
Accounts receivable(units)
Book balance Bad debt provision Accrual ratio Accrual reasons
Shenzhen Jinlu Industry and Trade Co., Has greater uncertainty in
9,846,607.00 9,846,607.00 100.00
Ltd. collection
Guangdong Zhanjiang Sanxing Auto Not expected to collected due to
4,060,329.44 4,060,329.44 100.00
Service Co., Ltd. long account age
Not expected to collected due to
Wang Changlong 2,370,760.40 2,370,760.40 100.00
long account age
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Balance at period-end
Accounts receivable(units)
Book balance Bad debt provision Accrual ratio Accrual reasons
Huizhou Jiandacheng Daoqiao
2,021,657.70 2,021,657.70 100.00 Less likely to collection
Engineering Company
Not expected to collected due to
Jiangling Automobile Factory 1,191,059.98 1,191,059.98 100.00
long account age
Not expected to collected due to
Yangjiang Auto Trade Co., Ltd. 1,150,000.00 1,150,000.00 100.00
long account age
Not expected to collected due to
Guangdong Materials Group Corp 1,862,000.00 1,862,000.00 100.00
long account age
104,989,603.93 1,049,896.04 Sales of jewelry on credit and in
Xiao Yueliang and other persons 1.00
the credit terms
Total 127,492,018.45 23,552,310.56 —— ——
②Account receivable provided for bad debt reserve under aging analysis method in the groups
Balance at period-end
Item
Book balance Bad debt provision Accrual ratio (%)
Within one year 9,608,591.88 -- --
Total 9,608,591.88 -- --
(3) Bad debt provision
Current changes Balance at
period-end
Balance at Accrual Collected Write
Category
year-beginning or switch off or
back charge
off
Account receivable with single
significant amount and
23,367,891.24 184,419.32 23,552,310.56
withdrawal bad debt provision
separately
Accounts with single minor 26,623,447.77 26,623,447.77
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Current changes Balance at
period-end
Balance at Accrual Collected Write
Category
year-beginning or switch off or
back charge
off
amount but with bad debts
provision accrued individually
Total 49,991,339.01 184,419.32 50,175,758.33
(4) Account receivable actually written-off in the period
No account receivable actually written-off in the period
(5) Top 5 account receivables at ending balance by arrears party
Proportion in total
Relationship with the Account
Name of the company Amount account
Company age
receivables (%)
Shenzhen Jinlu Industry and Over 3
Non-related party 9,846,607.00 6.01
Trade Co., Ltd.
years
Guangdong Zhanjiang Sanxing Over 3
Non-related party 4,060,329.44 2.48
Auto Service Co., Ltd.
years
Within one
Xu Zhenhua Non-related party 3,307,876.43 2.02
year
Within one
Mao Haitao Non-related party 3,257,484.74 1.99
year
Within one
Chen Guocan Non-related party 3,255,999.74 1.99
year
Total —— 23,728,297.35 —— 14.49
(6) Account receivable derecognition due to financial assets transfer
The Company has no account receivable derecognition due to financial assets transfer in the Period.
(7) Assets and liabilities resulted by account receivable transfer and continues involvement
The Company has no assets and liabilities resulted by account receivable transfer and continues
involvement in the Period.
4. Accounts paid in advance
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(1) By account age
Balance at period-end Balance at year-begin
Account age
Amount Ratio (%) Amount Ratio (%)
Within one year 12,472,954.30 99.84 9,092,219.33 99.78
1-2 years -- -- -- --
2-3 years -- -- -- --
Over 3 years 20,253.94 0.16 20,253.94 0.22
Total 12,493,208.24 100.00 9,112,473.27 100.00
(2) Top 5 advance payment at ending balance by prepayment object
The top 5 advance payment at ending balance by prepayment object amounted to 11,650,411.19
Yuan, takes 93.25% in total advance payment at end of the period
5. Other account receivable
Item Balance at period-end Balance at year-begin
Interest receivable 1,031,521.11 723,407.50
Dividend receivable 81,600,548.07 232,683.74
Other account receivable 11,848,636.82 13,527,117.17
Total 94,480,706.00 14,483,208.41
(1) Interest receivable
①By category
Item Balance at period-end Balance at year-begin
Time deposit 1,031,521.11 723,407.50
Total 1,031,521.11 723,407.50
(2) Dividend receivable
①Dividend receivable
Item (or invested unit) Balance at period-end Balance at year-begin
Shenzhen SDG Tellus Property Management
232,683.74
Co., Ltd.
Shenzhen Zung Fu Tellus Auto Service Co.,
17,500,000.00
Ltd.
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item (or invested unit) Balance at period-end Balance at year-begin
Shenzhen Dongfeng Automobile Co., Ltd 64,100,548.07
Total 81,600,548.07 232,683.74
(3) Other account receivable
①By account age
Account age Balance at period-end
Within one year 5,427,474.66
Including: within 6 months 5,427,474.66
7-12 months
Subtotal of within one year 5,427,474.66
1-2 years 2,911,720.87
2-3 years 222,017.41
3-4 years 317,737.67
4-5 years 77,841.64
Over 5 years 56,502,983.51
Subtotal 65,459,775.76
Less: bad debt provision 53,611,138.94
Total 11,848,636.82
②By nature
Nature Ending book balance Opening book balance
Intercourse funds receivable from related party 3,361,660.81 5,005,511.88
Other intercourse funds 62,098,114.95 62,418,829.69
Subtotal 65,459,775.76 67,424,341.57
Less: bad debt provision 53,611,138.94 53,897,224.40
Total 11,848,636.82 13,527,117.17
③Accrual of bad debt provision
Bad debt provision Phase I Phase II Phase III Total
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Expected credit
Expected credit losses
Expected credit losses for the entire
for the entire duration
losses over next 12 duration (without
(with credit
months credit impairment
impairment occurred)
occurred)
Balance on Jan. 1, 2019 4,001,456.73 49,895,767.67 53,897,224.40
Book balance of other
account receivable of Jan. 1,
2019 in the period
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual 21,907.69
Current switch back 307,993.15
Rewrite in the period
Write-off in the period
Other changes
Balance on Jun. 30, 2019 3,715,371.27 49,895,767.67 53,611,138.94
④Bad debt provision
Current changes Balance at
period-end
Balance at
Category Accrual Collected or Write off
year-beginning
switch back or charge
off
Other account receivable with
single significant amount and
39,207,653.44 39,207,653.44
withdrawal bad debt provision
separately
Other receivables with bad debt
4,001,456.73 21,907.69 307,993.15 3,715,371.27
provision accrual by credit
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
portfolio
Other Accounts with single
minor amount but with bad debts 10,688,114.23 10,688,114.23
provision accrued individually
Total 53,897,224.40 21,907.69 307,993.15 53,611,138.94
Including: important amount of bad debt provision that switch back or collected in the period
Amount switch back or collected Collection by
Name of the company
Collection of monetary fund
Chow Tai Fook Jewelry (Shenzhen) Co., Ltd 307,993.15
Total 307,993.15 ——
⑤ Other account receivable actually written-off in the period
No other account receivable actually written-off in the period
⑥Top 5 other account receivables at ending balance by arrears party
Ratio in total ending Bad debt
Balance at balance of other provision
Name of the company Nature Account age
period-end receivables Balance at
period-end
Intercou 15.02
Zhongqi South China Auto Sales
rse 9,832,956.37 Over 3 years 9,832,956.37
Company
funds
Intercou 11.24
South Industry & TRADE Shenzhen
rse 7,359,060.75 Over 3 years 7,359,060.75
Industrial Company
funds
Intercou 7.64
Shenzhen Zhonghao (Group) Co., Ltd rse 5,000,000.00 Over 3 years 5,000,000.00
funds
Intercou 5.41
Shenzhen Dongchang Yongtong Within one
rse 3,538,614.54
Automobile Inspection Co., Ltd. year
funds
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Ratio in total ending Bad debt
Balance at balance of other provision
Name of the company Nature Account age
period-end receivables Balance at
period-end
Intercou 4.21
Chow Tai Fook Jewelry (Shenzhen) Co.,
rse 2,759,100.00 1-2 years 137,955.00
Ltd
funds
Total —— 28,489,731.66 —— 43.52 22,329,972.12
⑧Other account receivable derecognition due to financial assets transfer in the Period
The Company has no other account receivable derecognition due to financial assets transfer in the
Period.
⑨Assets and liabilities resulted by other account receivable transfer and continues involvement in
the Period
The Company has no assets and liabilities resulted by other account receivable transfer and
continues involvement in the Period.
6. Inventories
(1) Category
Balance at period-end
Item
Book balance Depreciation reserve Book value
Raw materials 15,041,573.00 14,771,812.17 269,760.83
Stock products 30,631,625.42 14,103,023.28 16,528,602.14
Total 45,673,198.42 28,874,835.45 16,798,362.97
(Continued)
Balance at year-begin
Item
Book balance Depreciation reserve Book value
Raw materials 15,047,710.72 14,771,812.17 275,898.55
Stock products 26,169,979.13 14,103,023.28 12,066,955.85
Total 41,217,689.85 28,874,835.45 12,342,854.40
(2) Depreciation reserve
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Balance at
Current increased Current decreased
Balance at period-end
Item
year-beginning Switch back or
Accrual Other Other
write-off
Raw materials 14,771,812.17 14,771,812.17
Stock products 14,103,023.28 14,103,023.28
Total 28,874,835.45 28,874,835.45
7. Assets held for sale
(1)non-current assets held for sale and disposal group
Selling
Estimated Estimated Subordinate
Item Ending book value Fair value cause,
selling cost time of sale branch
method
Non-current assets held for —— —— —— —— ——
——
sale
Including: Long term equity 85,017,251.77 Transfer Leasing and
2019.8.14
investment service
Total 85,017,251.77
th
On December 12, 2017, the 13 temporary meeting of the 8th Board of Directors and the 3rd Extraordinary
General Meeting of 2017 reviewed and approved the Proposal on Disposal of 43% Equity of Shenzhen
Xinglong Machinery Mould Co., Ltd., and agreed the company to sell all 43% equity of Xinglong
Company by public listing. On June 15, 2018, the company signed the "Agreement on Transfer of
State-owned Property Rights of Enterprise" with the listing transferee Shenzhen Runhe United Investment
Development Co., Ltd. (hereinafter referred to as "Runhe"), and transferred 43% equity of Xinglong
Company at 286.67 million Yuan. As of December 31, 2018, the company has received the total payment
of 146,201,700 Yuan for the first and second phases of equity transfer under the aforementioned equity
transfer contract and received the interest of 1,309,400 Yuan. On June 14, 2019, the company received
equity transfer payment of 20 million Yuan and interest of 870,000 Yuan from Runhe. As of June 30, 2019,
the company received the total equity transfer payment of 166,201,700 Yuan and interest of 2,179,400
Yuan.
According to the "Accounting Standards for Business Enterprises No. 42 - Non-current assets held for sale,
disposal groups and termination of operations", the company divides the balance of RMB 85,017,200 of
long-term equity investment of Xinglong Company as of June 30, 2018 as the assets held for sale, and no
equity method is accounted for after June 30, 2018. As of the date of approval of this report, the company
has received the total equity transfer payment of 286,670,000 Yuan and the interest of 9,028,100 Yuan in
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
accordance with the "Agreement on Transfer of State-owned Property Rights of Enterprise" and the
supplementary agreement.
(2) Impairment of assets held for sale
The assets held for sale has no sign of impairment.
8. Other current assets
Item Balance at period-end Balance at year-begin
Input tax ready for deducted 2,208,745.54 2,032,494.44
Financial products 40,000,000.00
Total 42,208,745.54 2,032,494.44
9. Other creditors’ investment
(1) Accrual of impairment provision
Phase I Phase II Phase III
Expected credit
Expected credit losses
Expected credit losses for the entire
Impairment provision for the entire duration Total
losses over next duration (without
(with credit
12 months credit impairment
impairment occurred)
occurred)
Balance on Jan. 1, 2019 20,000.00 20,000.00
Book balance of other
creditors‘ investment of Jan. 1,
2019 in the period:
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
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深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Phase I Phase II Phase III
Expected credit
Expected credit losses
Expected credit losses for the entire
Impairment provision for the entire duration Total
losses over next duration (without
(with credit
12 months credit impairment
impairment occurred)
occurred)
Balance on Jun. 30, 2019 20,000.00 20,000.00
10. Long-term account receivable
(1) Long-term account receivable
Discount
Balance at period-end Balance at year-begin rate
Item interval
Impairment Book Impairment Book
Book balance Book balance
provision value provision value
Other:
Essentially constitute a
long-term equity for net
2,179,203.68 2,179,203.68 -- 2,179,203.68 2,179,203.68 --
investment of invested
company
Including: Shenzhen Tellus
Auto Service Chain Co., Ltd. 2,179,203.68 2,179,203.68 -- 2,179,203.68 2,179,203.68 --
*
Total 2,179,203.68 2,179,203.68 -- 2,179,203.68 2,179,203.68 -- ——
(2) Accrual of impairment provision
Phase I Phase II Phase III
Expected credit
Expected credit losses
Expected credit losses for the entire
Bad debt provision for the entire duration Total
losses over next duration (without
(with credit
12 months credit impairment
impairment occurred)
occurred)
Balance on Jan. 1, 2019 2,179,203.68 2,179,203.68
Book balance of long-term
account receivable of Jan. 1,
2019 in the period:
137
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Phase I Phase II Phase III
Expected credit
Expected credit losses
Expected credit losses for the entire
Bad debt provision for the entire duration Total
losses over next duration (without
(with credit
12 months credit impairment
impairment occurred)
occurred)
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
Balance on Jun. 30, 2019 2,179,203.68 2,179,203.68
* Note: The Company is an associated enterprise of the Company, and the Company substantially
constitutes a net investment in the investee to its non-operating receivables. As of the end of the reporting
period, the total liabilities of the company have exceeded the total assets, and the owner's equity was
negative. The book value of the Company's long-term equity investment in the company has been reduced
to zero. The company has ceased operations during the reporting period. In view of the actual situation of
the company, the Company has drawn off the bad debt provisions for the long-term receivables in full.
(3) Long-term account receivable derecognition due to financial assets transfer
The Company has no long-term account receivable derecognition due to financial assets transfer.
(4) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
The Company has no assets and liabilities resulted by long-term account receivable transfer and
continues involvement.
11. Long term equity investment
The invested entity Balance at Changes in the period (+,-)
138
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
year-beginning Additi Capita Other
Investment gains Other
onal l comprehensi
recognized under equity
invest reducti ve income
equity change
ment on adjustment
I. Joint venture
Shenzhen Tellus Gman Investment Co., Ltd
62,039,013.62 3,652,191.24
Shenzhen Tellus Hang Investment Co., Ltd.
11,253,581.63 363,981.77
Subtotal 73,292,595.25 4,016,173.01
II. Associated enterprise
Shenzhen Tellus Auto Service Chain Co., Ltd.
--
Shenzhen Zung Fu Tellus Auto Service Co., Ltd.
40,203,423.40 4,360,298.66
Shenzhen Auto Industry Imp& Exp Co., Ltd.
7,482,170.28 -409,250.15
Shenzhen Dongfeng Automobile Co., Ltd
103,666,577.28 2,808,303.02
Shenzhen Xinyongtong Oil Pump Environment
Protection Co., Ltd. 127,836.59
Shenzhen Xinyongtong Consultant Co., Ltd.
41,556.83
Shenzhen Xinyongtong Auto Service Co., Ltd.
--
Shenzhen Xinyongtong Dongxiao Auto Parts
Sales Co., Ltd. --
Shenzhen Yongtong Xinda Inspection Equipment
Co., Ltd. --
Hunan Changyang Industrial Co., Ltd*①
1,810,540.70
Shenzhen Jiecheng Electronic Co., Ltd*①
3,225,000.00
Shenzhen Xiandao New Materials Company*①
4,751,621.62
China Auto Industrial Shenzhen Trading
Company*① 400,000.00
Shenzhen General Standard Co., Ltd*①
500,000.00
Shenzhen Huoju Spark Plug Industry Co., Ltd.
17,849.20
Zhongqi South China Auto Sales Company*①
2,250,000.00
Shenzhen Bailiyuan Power Supply Co., Ltd*①
1,320,000.00
Shenzhen Yimin Auto Trading Co., Ltd*①
200,001.10
139
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Changes in the period (+,-)
Additi Capita Other
Balance at Investment gains Other
The invested entity onal l comprehensi
year-beginning recognized under equity
invest reducti ve income
equity change
ment on adjustment
Subtotal 165,996,577.00 6,759,351.53
III. Other equity investment
Shenzhen Hanligao Technology Ceramics Co.,
1,956,000.00
Ltd*②
Shenzhen South Auto Maintenance Center*② 6,700,000.00
Subtotal 8,656,000.00
Total 247,945,172.25 10,775,524.54
(Continued)
Changes in the period (+,-)
Ending balance of
Cash dividend or Accrual
The invested entity Balance at period-end impairment
profit announced Impairmen Other
provision
to issued t provision
I. Joint venture
Shenzhen Tellus Gman Investment Co., Ltd 65,691,204.86 --
Shenzhen Tellus Hang Investment Co., Ltd. 11,617,563.40 --
Subtotal 77,308,768.26 --
II. Associated enterprise
Shenzhen Tellus Auto Service Chain Co., Ltd. --
Shenzhen Zung Fu Tellus Auto Service Co., Ltd. 27,063,722.06 --
17,500,000.00
Shenzhen Auto Industry Imp& Exp Co., Ltd. 7,072,920.13 --
Shenzhen Dongfeng Automobile Co., Ltd 42,374,332.23 --
64,100,548.07
Shenzhen Xinyongtong Oil Pump Environment
127,836.59 127,836.59
Protection Co., Ltd.
Shenzhen Xinyongtong Consultant Co., Ltd. 41,556.83 41,556.83
Shenzhen Xinyongtong Auto Service Co., Ltd. --
140
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Changes in the period (+,-)
Ending balance of
Cash dividend or Accrual
The invested entity Balance at period-end impairment
profit announced Impairmen Other
provision
to issued t provision
Shenzhen Xinyongtong Dongxiao Auto Parts
--
Sales Co., Ltd.
Shenzhen Yongtong Xinda Inspection Equipment
--
Co., Ltd.
Hunan Changyang Industrial Co., Ltd*① 1,810,540.70 1,810,540.70
Shenzhen Jiecheng Electronic Co., Ltd*① 3,225,000.00 3,225,000.00
Shenzhen Xiandao New Materials Company*① 4,751,621.62 4,751,621.62
China Auto Industrial Shenzhen Trading
400,000.00 400,000.00
Company*①
Shenzhen General Standard Co., Ltd*① 500,000.00 500,000.00
Shenzhen Huoju Spark Plug Industry Co., Ltd. 17,849.20 17,849.20
Zhongqi South China Auto Sales Company*① 2,250,000.00 2,250,000.00
Shenzhen Bailiyuan Power Supply Co., Ltd*① 1,320,000.00 1,320,000.00
Shenzhen Yimin Auto Trading Co., Ltd*① 200,001.10 200,001.10
Subtotal 91,155,380.46 14,644,406.04
III. Other equity investment
Shenzhen Hanligao Technology Ceramics Co.,
1,956,000.00 1,956,000.00
Ltd*②
Shenzhen South Auto Maintenance Center*② 6,700,000.00 6,700,000.00
Subtotal 8,656,000.00 8,656,000.00
Total 177,120,148.72 23,300,406.04
12. Other equity instrument investment
Other equity instrument investment
Item Balance at period-end Balance at year-begin
Equity instrument available 10,176,617.20
for sale originally measured 10,176,617.20
by cost
141
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Balance at period-end Balance at year-begin
Total 10,176,617.20 10,176,617.20
13. Investment real estate
(1) Measured at cost
Item House and building Total
I. Original book value
1. Balance at year-beginning 602,025,611.05 602,025,611.05
2. Current increased -- --
(1) Outsourcing -- --
3. Current decreased 9,546,631.74 9,546,631.74
(1) Other transfer-out 9,546,631.74 9,546,631.74
4. Balance at period-end 592,478,979.31 592,478,979.31
II. Accumulated depreciation and
accumulated amortization
1. Balance at year-beginning 98,103,197.35 98,103,197.35
2. Current increased 7,526,757.87 7,526,757.87
(1) Accrual or amortization 7,526,757.87 7,526,757.87
3. Current decreased 7,314,436.12 7,314,436.12
(1) Other transfer-out 7,314,436.12 7,314,436.12
4. Balance at period-end 98,315,519.10 98,315,519.10
III. Impairment provision -- --
IV. Book value
1. Ending book value 494,163,460.21 494,163,460.21
2. Book value at year-beginning 503,922,413.70 503,922,413.70
(2) Investment real estate with ownership restricted
Up to 30 June 2019, the Company had no investment real estate with ownership restricted.
(3) Amount and cause for the investment real estate without ownership certificate
Item Book value Cause of without the ownership certificate
142
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Uncompleted settlement, failure to handle the
428,727,924.01
Tellus Shuibei Jewelry Building ownership certificate
Failure to handle the ownership certificate
Buxin workshop corridor #5, #6, #7
15,985.26 for historical reasons
Failure to handle the ownership certificate
12 buildings in Sungang 18,719.33
for historical reasons
Failure to handle the ownership certificate
12 building shops in Sungang 58,608.27
for historical reasons
Total 428,821,236.87
143
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
14. Fixed assets
Machinery Transportation Electronic Office and other Decoration charge for
①Fixed assetsItem House and buildings Total
equipment equipment equipment equipment self-owned houses
I. Original book value
1. Balance at year-beginning 266,262,162.27 11,674,073.65 5,086,600.26 9,657,434.32 2,852,584.72 2,697,711.99 298,230,567.21
2. Increase in the current period -- 194,910.65 671,448.67 445,618.32 68,575.56 -- 1,380,553.20
(1) Purchase -- 194,910.65 671,448.67 445,618.32 68,575.56 -- 1,380,553.20
3. Decrease in the current
-- -- 580,507.20 -- -- -- 580,507.20
period
(1) Disposal or scrapping -- -- 580,507.20 -- -- -- 580,507.20
4. Year-end balance 266,262,162.27 11,868,984.30 5,177,541.73 10,103,052.64 2,921,160.28 2,697,711.99 299,030,613.21
II. Accumulated depreciation
1. Balance at year-beginning 156,944,286.41 8,711,585.77 3,707,548.67 7,355,334.20 2,176,012.31 2,416,329.26 181,311,096.62
2. Increase in the current period 3,557,840.34 163,437.76 180,580.37 297,689.44 80,199.89 -- 4,279,747.80
(1) Accrual 3,557,840.34 163,437.76 180,580.37 297,689.44 80,199.89 -- 4,279,747.80
3. Decrease in the current --
-- -- 426,530.92 -- -- 426,530.92
period
(1) Disposal or scrapping -- -- 426,530.92 -- -- -- 426,530.92
144
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Machinery Transportation Electronic Office and other Decoration charge for
①Fixed assetsItem House and buildings Total
equipment equipment equipment equipment self-owned houses
4. Year-end balance 160,502,126.75 8,875,023.53 3,461,598.12 7,653,023.64 2,256,212.20 2,416,329.26 185,164,313.50
III. Impairment provision
1. Balance at year-beginning 3,555,385.70 319,675.11 6,165.00 17,984.71 64,859.81 281,382.73 4,245,453.06
2. Increase in the current period -- -- -- -- -- -- --
(1) Accrual -- -- -- -- -- -- --
3. Decrease in the current
-- -- -- -- -- -- --
period
(1) Disposal or scrapping -- -- -- -- -- -- --
4. Year-end balance 3,555,385.70 319,675.11 6,165.00 17,984.71 64,859.81 281,382.73 4,245,453.06
IV. Book value
1. Book value at year-end 102,204,649.82 2,674,285.66 1,709,778.61 2,432,044.29 600,088.27 -- 109,620,846.65
2. Book value at
105,762,490.16 2,642,812.77 1,372,886.59 2,284,115.41 611,712.60 -- 112,674,017.53
year-beginning
145
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
②Temporary idle fixed asset
The Company had no temporary idle fixed asset end as 30 June 2019.
③Fixed assets without ownership certificate
Item Book value Cause of without the ownership certificate
Shuibei Zhongtian comprehensive Failure to handle the ownership certificate for historical
1,025,152.02
building reasons
Failure to handle the ownership certificate for historical
5,902.41
Hostel of Renmin North Road reasons
Songquan Apartment (mixed) Failure to handle the ownership certificate for historical
20,524.10
reasons
Tellus Building underground Parking lot is un-able to carried out the certificate
9,761,569.10
parking
Tellus Building transformation Un-able to carried out the certificate
1,706,392.88
layer
Trade department warehouse Failure to handle the ownership certificate for historical
82,128.85
reasons
Warehouse Failure to handle the ownership certificate for historical
905,383.21
reasons
1#,2# and 3-5/F 3# plant of Failure to handle the ownership certificate for historical
3,906,488.56
Taoyuan Road reasons
Failure to handle the ownership certificate for historical
35,322,911.41
Yongtong Building reasons
16# Taohua Garden Failure to handle the ownership certificate for historical
1,558,503.72
reasons
Automotive building Failure to handle the ownership certificate for historical
16,961,952.19
reasons
First floor of Bao‘an Failure to handle the ownership certificate for historical
987,597.33
commercial-residence build reasons
Failure to handle the ownership certificate for historical
4,990,692.75
Nuclear Office build reasons
Total 77,235,198.53
146
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
15. Construction-in-progress
Item Balance at period-end Balance at year-begin
Construction-in-progress 22,707,214.36 12,843,571.97
Total 22,707,214.36 12,843,571.97
(1) Construction-in-progress
Balance at period-end Balance at year-begin
Impair Impair
Item ment ment
Book balance Book value Book balance Book value
provisi provisi
on on
Shuibei Jewelry
22,707,214.36 22,707,214.36 12,843,571.97 12,843,571.97
Industrial Park
Total 22,707,214.36 22,707,214.36 12,843,571.97 12,843,571.97
16. Intangible assets
(1) Intangible assets
Item Land use right Trademark right Software Total
I. Original book value
1. Balance at
56,252,774.80 128,500.00 1,093,185.00 57,474,459.80
year-beginning
2. Increase in the
-- -- 90,960.00 90,960.00
current period
(1) Purchase -- -- 90,960.00 90,960.00
3. Decrease in the
-- -- -- --
current period
(1) Disposal -- -- -- --
4. Year-end balance 56,252,774.80 128,500.00 1,184,145.00 57,565,419.80
II. accumulated
amortization
1. Balance at
5,490,224.49 82,674.35 889,278.71 6,462,177.55
year-beginning
147
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Land use right Trademark right Software Total
2. Increase in the
609,507.42 3,081.65 57,873.07 670,462.14
current period
(1) Accrual 609,507.42 3,081.65 57,873.07 670,462.14
3. Decrease in the
-- -- -- --
current period
(1) Disposal -- -- -- --
4. Year-end balance 6,099,731.91 85,756.00 947,151.78 7,132,639.69
III. Impairment
-- -- -- --
provision
IV. Book value
1. Book value at 50,153,042.89 42,744.00 236,993.22 50,432,780.11
year-end
2. Book value at 50,762,550.31 45,825.65 203,906.29 51,012,282.25
year-beginning
Note: The amount amortized in this period accounting as RMB 670,462.14.
17. Long-term prepaid expenses
Balance at Amortization during Balance at
Item Current increased Other decrease
year-beginning this period period-end
Decoration charge 6,304,607.22 1,828,553.10 527,299.42 7,605,860.90
Total 6,304,607.22 1,828,553.10 527,299.42 7,605,860.90
18. Deferred income tax asset
(1) Deferred income tax asset recognized
Balance at period-end Balance at year-begin
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
Assets impairment provision 78,513,371.59 19,628,342.90 78,513,371.56 19,628,342.90
Equity investment difference 14,844,139.31 3,711,034.83 14,844,139.31 3,711,034.83
Un-realized transaction profit
3,984,951.52 996,237.88 4,062,835.92 1,015,708.98
with affiliated companies
Total 97,342,462.42 24,335,615.61 97,420,346.79 24,355,086.71
148
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
(2) Deferred income tax asset without recognized
Item Balance at period-end Balance at year-begin
Deductible temporary difference 92,019,663.92 92,121,330.08
Offset-able losses 32,098,735.18 44,070,344.23
Total 124,118,399.10 136,191,674.31
(3) Offset-able losses of the unrecognized deferred income tax assets will expire the following year
Year Balance at period-end Balance at end of last year Note
2019 14,499,089.58
2020 505,851.30 505,851.30
2021 2,121,146.48 2,121,146.48
2022 7,146,101.41 7,146,101.41
2023 19,798,155.46 19,798,155.46
2024 2,527,480.53
Total 32,098,735.18 44,070,344.23
19. Other non-current asset
Item Balance at period-end Balance at year-begin
Equipment account paid in advance 743,261.62 573,661.62
Project account paid in advance 18,109,022.75 2,683,303.10
Other 100,000.00
Total 18,852,284.37 3,356,964.72
20. Short-term loans
(1) Category
Item Balance at period-end Balance at year-begin
Debt of honor 143,000,000.00 143,000,000.00
Total 143,000,000.00 143,000,000.00
21. Accounts payable
(1) Accounts payable
Item Balance at period-end Balance at year-begin
149
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Balance at period-end Balance at year-begin
Accounts payable 65,355,485.14 73,365,876.09
Total 65,355,485.14 73,365,876.09
(2) Major account payable with over one year age
Item Balance at period-end Unsettled reasons
Shenzhen SDG Real Estate Co., Ltd 6,054,855.46 Unrepayment from related enterprise
Total 6,054,855.46 ——
22. Accounts received in advance
(1) Accounts received in advance
Item Balance at period-end Balance at year-begin
Within one year 17,495,261.19 10,724,147.61
1-2 years 1,842,649.14
2-3 years 8,723.00 2,276,416.21
Over 3 years 1,054,551.01 1,054,551.01
Total 18,558,535.20 15,897,763.97
Note: Account received in advance over 3 years mainly represents the prepayment from the subsidiary Shenzhen
Xinyongtong Auto Inspection Equipment Co., Ltd., not carried forward since the customer has not reviewed and
accepted the equipment during the installment and commissioning stage.
23. Wage payable
(1) Wage payable
Balance at Increased in the Decreased in the Balance at
Item
year-beginning period period period-end
I. Short-term compensation 24,800,605.87 28,613,885.95 26,821,086.96 26,593,404.86
II. Post-office benefit- defined 1,002,064.49
2,505,366.30 2,395,485.14 1,111,945.65
contribution plans
III. Dismissal benefit -- 164,910.00 164,910.00 --
IV. Other welfare due within one year -- -- -- --
Total 25,802,670.36 31,284,162.25 29,381,482.10 27,705,350.51
(2) Short-term compensation
150
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Balance at Increased in the Decreased in the Balance at
Item
year-beginning period period period-end
1. Wages , bonuses, allowances and
22,536,844.79 25,285,370.87 23,484,599.42 24,337,616.24
subsidies
2. Welfare for workers and staff -- 341,147.61 341,147.61 --
3. Social insurance 6,433.95 1,004,899.52 1,005,634.37 5,699.10
Including: Medical insurance
5,247.87 907,577.23 908,312.08 4,513.02
Work injury insurance
513.72 21,893.57 21,893.57 513.72
Maternity insurance
672.36 75,428.72 75,428.72 672.36
4. Housing accumulation fund
2,031,964.30 1,450,636.34 1,442,457.30 2,040,143.34
5. Labor union expenditure and
personnel education expense 225,362.83 531,831.61 547,248.26 209,946.18
Total 24,800,605.87 28,613,885.95 26,821,086.96 26,593,404.86
(3) Defined contribution plans
Balance at Increased in the Decreased in the Balance at
Item
year-beginning period period period-end
1. Basic endowment insurance 130,114.53 2,380,182.77 2,369,627.43 140,669.87
2. Unemployment insurance 1,263.01 25,933.53 25,857.71 1,338.83
3. Enterprise annuity 870,686.95 99,250.00 -- 969,936.95
Total 1,002,064.49 2,505,366.30 2,395,485.14 1,111,945.65
24. Taxes payable
Item Balance at period-end Balance at year-begin
VAT 1,634,634.93 1,372,624.04
Corporation income tax 5,411,047.29 1,914,409.61
Individual income tax 313,438.96 261,135.13
City maintaining & construction tax 145,853.67 151,417.42
Property right tax 1,686,793.48 266.04
Land VAT 5,362,682.64 5,362,682.64
Land use tax 223,813.86 26,459.98
151
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Balance at period-end Balance at year-begin
Education surcharge 145,432.31 149,406.46
Stamp duty 19,284.89 93,010.71
Other 45,981.54
Total 14,942,982.03 9,377,393.57
25. Other accounts payable
Item Balance at period-end Balance at year-begin
Interest payable 172,792.00 290,215.78
Other accounts payable 271,426,299.34 250,198,878.69
Total 271,599,091.34 250,489,094.47
(1) Interest payable
Item Balance at period-end Balance at year-begin
Interest of long-term loans with interest-installment and
57,405.37
principal paid on due
Interest payable of short-term loans 172,792.00 232,810.41
Total 172,792.00 290,215.78
No overdue interest unpaid.
(2) Other accounts payable
①By nature
Item Balance at period-end Balance at year-begin
Relevant contacts 24,783,476.50 37,392,791.77
Deposit and margin 28,350,746.47 22,124,264.01
Other 218,292,076.37 190,681,822.91
Total 271,426,299.34 250,198,878.69
26. Long-term loans
Item Balance at period-end Balance at year-begin
Mortgage loan 34,934,887.55
Total 34,934,887.55
152
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
On June 24, 2014, Zhongtian Company and China Construction Bank Co., Ltd. Shenzhen Branch signed the
―Fixed Asset Loan Contract‖ for the construction of the first phase of the Jewelry Building, the contract stipulated
a loan amount of 300 million Yuan and the loan period was from June 24, 2014 to June 23, 2024. As of March 31,
2019, the loan still had outstanding of 4 million Yuan, which was fully paid off in April 2019.
27. Long-term account payable
Item Balance at period-end Balance at year-begin
Long-term account payable 3,920,160.36 3,920,160.36
Special payable
Total 3,920,160.36 3,920,160.36
(1) Long-term account payable
Item Balance at period-end Balance at year-begin
Deposit of staff residence 3,908,848.40 3,908,848.40
Allocation for technology innovation projects 11,311.96 11,311.96
Total 3,920,160.36 3,920,160.36
28. Accrual liability
Item Balance at year-begin Balance at period-end Causes
Pending litigation 2,225,468.76 2,225,468.76
Total 2,225,468.76 2,225,468.76
Explanation on contingency③: In May 2014, Huarong Shenzhen Company sued Guangming Watch Industry
Company and Automobile Industry and Trade Company in Shenzhen Futian District People's Court, requesting
the decree that Huarong Shenzhen Company obtain the ownership equity of Guangming Watch Industry Company
under Civil Judgment (1997) SFFJCZ No. 801, and requesting the decree that Automobile Industry and Trade
Company assumes joint liability for the above debts on the grounds that Guangming Watch Industry Company‘s
not liquidating caused the shareholders to damage the creditor's interest of the company.
Up to 29 May 2014, the debt principle of 350,000.00 Yuan and interest 65,200.08 Yuan are need to paid by the
Company. The court acceptance fee 12,010.00 Yuan and debt interest 946,697.54 Yuan during the delayed
performance period, together with principle and interests amounted to 1,361,897.62 Yuan. At the bank borrowing
rate for the same period and counted to 29 May 2019, the principle and interest that the Company may need to
paid 1,854,557.30 Yuan in total. If Huarong Company propose the default interest of 20% and without the
objection from the court, the highest possible loss is amounted to 2,225,468.76 Yuan in total (including principle
and interest) by the Company.
153
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
29. Share capital
Changes in the period (+,-)(+ . -)
Balance at New Shares converted Balance at
Item Bonus
year-beginning shares from public Other Subtotal period-end
shares
issued reserve
Total share
297,281,600 133,776,720 133,776,720 431,058,320
capital
30. Capital reserve
Balance at Increased in the Decreased in the
Item Balance at period-end
year-beginning period period
Capital premium 559,544,773.35 133,776,720.00 425,768,053.35
Other capital reserve 5,681,501.16 5,681,501.16
Total 565,226,274.51 133,776,720.00 431,449,554.51
After the resolution of Shareholders general meeting on 23 April 2019, based on the total share capital of
297,281,600 dated 31st December 2018, the Company increase 4.5 shares for every 10 shares to all shareholders
with capital reserves, 133,776,720 shares in total are being converted, balance of capital reserves amounted to
431,449,554.51 Yuan after converted.
31. Other comprehensive income
154
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Current period
Less: written in
other comprehensive
Balance at income in previous Belong to Belong to
Account before
Item Balance at year-begin year-beginni period and carried Less : income tax parent minority Ending balance
income tax in the
ng forward to gains and expense company after shareholders
period
losses in current tax after tax
period (or retained
earnings)
I. Other comprehensive
income items which will
not be reclassified
subsequently to profit of
loss
Including: Changes of
the defined benefit plans
that re-measured
Other
？
comprehensive income
under equity method that
cannot be transfer to
gain/loss
II. Other comprehensive
income items which will
be reclassified 26,422.00 26,422.00
subsequently to profit or
loss
155
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Current period
Less: written in
other comprehensive
Balance at income in previous Belong to Belong to
Account before
Item Balance at year-begin year-beginni period and carried Less : income tax parent minority Ending balance
income tax in the
ng forward to gains and expense company after shareholders
period
losses in current tax after tax
period (or retained
earnings)
Including: Other
comprehensive income
26,422.00 26,422.00
under equity method that
can transfer to gain/loss
Gain/loss of fair
value changes for
available-for-sale
financial assets(Former
financial instrument
standard)
Gain/loss of
held-to-maturity
investments that
re-classify to
available-for-sale
financial asset(Former
financial instrument
standard)
156
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Current period
Less: written in
other comprehensive
Balance at income in previous Belong to Belong to
Account before
Item Balance at year-begin year-beginni period and carried Less : income tax parent minority Ending balance
income tax in the
ng forward to gains and expense company after shareholders
period
losses in current tax after tax
period (or retained
earnings)
Change of fair
value of other creditors‘
investment
Amount of
financial assets
re-classify to other
comprehensive income
Credit
impairment provision for
other creditors‘
investment
Cash flow
hedging reserve
Translation
differences arising on
translation of foreign
currency financial
statements
157
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Current period
Less: written in
other comprehensive
Balance at income in previous Belong to Belong to
Account before
Item Balance at year-begin year-beginni period and carried Less : income tax parent minority Ending balance
income tax in the
ng forward to gains and expense company after shareholders
period
losses in current tax after tax
period (or retained
earnings)
Total other
26,422.00 26,422.00
comprehensive income
158
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
32. Surplus reserve
Balance at Balance at Increased in the Decreased in Balance at
Item
year-begin year-beginning period the period period-end
Statutory surplus reserve 3,139,918.14 3,139,918.14 -- -- 3,139,918.14
Total 3,139,918.14 3,139,918.14 -- -- 3,139,918.14
33. Retained profit
Item Current period Last period
Retained profits at the end of last year before adjustment 184,535,322.70 97,798,595.80
Adjust the total Retained profits at the beginning of the year --
--
(Increase +, Decrease -)
Retained profits at the beginning of the year after adjustment 184,535,322.70 97,798,595.80
Add: The net profits belong to shareholders of patent 26,920,279.86
44,779,948.60
company of this period
Less: Withdraw statutory surplus reserves -- --
Withdraw free surplus reserves -- --
Withdrawal of general risk provisions -- --
Common stock dividends payable -- --
Common stock dividends transferred to capital stock -- --
Retained profits at end of the period 229,315,271.30 124,718,875.66
34. Operating income and cost
Current period Same period last year
Item
Income Cost Income Cost
Main business 274,182,882.36 209,294,422.75 194,190,757.18 152,737,808.48
Other business 4,085,856.97 1,199,589.67 3,764,324.55 1,002,143.63
Total 278,268,739.33 210,494,012.42 197,955,081.73 153,739,952.11
35. Tax and surcharges
Item Current period Same period last year
Consumption tax 228,067.46 238,345.22
City maintaining & construction tax 395,934.29 364,256.92
159
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Current period Same period last year
Education surcharge 282,810.15 258,836.71
Land use tax 218,743.88 209,447.09
Property right tax 1,686,527.43 1,729,876.12
Stamp duty 152,809.21 102,522.31
Other taxes 3,272.64 19,337.55
Total 2,968,165.06 2,922,621.92
Note: tax paying standards found more in Note V. Taxes
36. Sales expenses
Item Current period Same period last year
Staff remuneration 6,075,124.02 5,088,693.99
Advertising and exhibition expenses 238,736.65 337,873.81
Depreciation and amortization 710,671.25 578,266.24
Office expenses 283,392.38 302,546.51
Utilities 141,178.84 395,335.70
Transportation and business trip cost 147,134.39 177,820.47
Other 1,762,276.76 1,457,370.55
Total 9,358,514.29 8,337,907.27
37. Administration expense
Item Current period Same period last year
Staff remuneration 13,660,961.91 14,695,652.80
Office expenses 631,367.84 754,044.43
Transportation and business trip cost 159,511.67 322,091.67
Business entertainment expenses 257,293.90 441,210.59
Depreciation and amortization 1,027,310.00 868,746.73
Consulting and service expenses 528,616.99 1,382,567.03
Other 613,566.95 672,779.16
Total 16,878,629.26 19,137,092.41
160
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
38. Financial expenses
Item Current period Same period last year
Interest expenses 4,765,937.06 4,367,283.44
Less: Interest income 1,152,054.69 1,053,302.07
Less: interest capitalized amount 685,189.91
Exchange gains and losses 10,717.33 14,108.62
Other 133,176.06 128,972.53
Total 3,757,775.76 2,771,872.61
39. Other income
Amount reckoned into
Item Current period Same period last year current non-recurring
gains/losses
VAT input tax deduction 6,611.29 6,611.29
Total 6,611.29 6,611.29
40. Investment income
Item Current period Same period last year
Income of long-term equity investment calculated based 12,795,300.82
10,775,524.54
on equity
Income of disposal of long-term equity investment 1,308,598.25
Investment income of financial products during the 3,762,123.18
5,935,926.39
holding period
Total 16,711,450.93 17,866,022.25
41. Credit impairment loss
Item Current period Same period last year
Bad debt loss of account receivable -184,419.32 ——
Bad debt loss of other account receivable 286,085.46 ——
Total 101,666.14
42. Assets impairment loss
161
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Item Current period Same period last year
Bad debt loss —— -383,789.39
Loss from falling price of inventory -8,250.86
Total -392,040.25
43. Income from assets disposal
Amount reckoned into
Item Current period Same period last year current non-recurring
gains/losses
Income from disposal of non-current
103,159.68 103,159.68
assets
Total 103,159.68 103,159.68
44. Non-operating income
Amount reckoned into
Item Current period Same period last year current non-recurring
gains/losses
Gains from non-current assets
52,583.13 52,583.13
damaged/scrap
Including: Fixed assets 52,583.13 52,583.13
Intangible assets
Gains for account unable to paid 3,131.97
Other 55,157.55 31,262.42 55,157.55
Total 119,625.44 34,394.39 119,625.44
45. Non-operating expenditure
Amount reckoned into
Item Current period Same period last year current non-recurring
gains/losses
Loss of non-current assets scrap and
99,240.38
damage
Including: Fixed assets 99,240.38
162
深圳市特力(集团)股份有限公司 2019 年半年度报告全文
Amount reckoned into
Item Current period Same period last year current non-recurring
gains/losses
Intangible assets
Other 833,400.00 447.93 833,400.00
