深圳市深粮控股股份有限公司SHENZHEN CEREALS HOLDINGS CO.,LTD.
ANNUAL REPORT 2021
April 2022
Section I. Important Notice, Contents and InterpretationBoard of Directors, Supervisory Committee, all directors, supervisors and senior executives ofSHENZHEN CEREALS HOLDINGS CO.,LTD. (hereinafter referred to as the Company)hereby confirm that there are no any fictitious statements, misleading statements, orimportant omissions carried in this report, and shall take all responsibilities, individualand/or joint, for the reality, accuracy and completion of the whole contents.Chairman of the Company Zhu Junming, General Manager Hu Xianghai, Head ofAccounting Lu Yuhe and Head of Accounting Institution (Accounting Supervisors) Wen Jieyuhereby confirm that the Financial Report of Annual Report 2021 is authentic, accurate andcomplete.All Directors are attended the Board Meeting for deliberation of this Report.Concerning the forward-looking statements with future planning involved in the annualreport, they do not constitute a substantial commitment for investors, Securities Times, ChinaSecurities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn)are the media appointed by the Company for information disclosure, all information of theCompany disclosed in the above mentioned media should prevail. Investors are advised toexercise caution of investment risks.The Company has analyzed the risk factors that the Company may exist and itscountermeasures in the report, investors are advised to pay attention to read “Prospect forfuture development of the Company” in the report of Section IV-Discussion and Analysis ofthe Operation. This report has been prepared in Chinese and English version respectively. Inthe event of difference in interpretation between the two versions, Chinese report shallprevail.The profit distribution plan deliberated and approved by the Board Meeting was: distributedcash bonus of 2.50 yuan (tax included) for every 10 shares held by whole shareholders basedon the 1,152,535,254, zero share(tax included) for bonus and no transfer of public reservesinto share capital either.
Contents
Section I. Important Notice, Contents and Interpretation ............................................................. 2
Section II Company Profile and Main Financial Indexes ...... 6
Section III Management Discussion and Analysis ...... 12
Section IV Corporate Governance ...... 41
Section V. Environmental and Social Responsibility .................................................................... 66
Section VI. Important Events ......................................................................................................... 70
Section VII. Changes in Shares and Particulars about Shareholders ....................................... 100
Section VIII. Preferred Stock ........................................................................................................ 108
Section IX. Corporate Bonds ........................................................................................................ 109
Section X. Financial Report .......................................................................................................... 110
Documents Available for Reference
1. Text of financial statement with signature and seals of legal person, person in charge of accounting works andperson in charge of accounting institution;
2. Original audit report with seal of the CPAs and signature and seal of the certified public accountants;
3. Original and official copies of all documents which have been disclosed on Securities Times, China SecuritiesJournal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) in the report period;
4. Original copies of 2021 Annual Report with signature of the Chairman.
Interpretation
Items | Refers to | Contents |
SZCH/Listed Company /the Company/ | Refers to | Shenzhen Cereals Holdings Co., Ltd. |
Shenshenbao/Shenbao Company | Refers to | Shenzhen Shenbao Industrial Co., Ltd. |
SZCG | Refers to | Shenzhen Cereals Group Co., Ltd |
Doximi | Refers to | Shenzhen Shenliang Doximi Business Co., Ltd. |
Flour Company, Flour Factory | Refers to | Shenzhen Flour Co., Ltd |
Shenliang Quality Inspection | Refers to | Shenliang Quality Inspection Co., Ltd. |
Dongguan Logistics | Refers to | Dongguan Shenliang Logistics Co., Ltd. |
Dongguan Food Industrial Park | Refers to | Dongguan International Food Industrial Park Development Co., Ltd. |
Shenbao Huacheng | Refers to | Shenzhen Shenbao Huacheng Technology Co., Ltd. |
Hualian Company | Refers to | Shenzhen Hualian Grain and Oil Trading Co., Ltd. |
Shenliang Cold Chain | Refers to | Shenzhen Shenliang Cold Chain Logistics Co., Ltd. |
Shenliang Property | Refers to | Shenzhen Shenliang Property Development Co., Ltd. |
Wuhan Jiacheng | Refers to | Wuhan Jiacheng Biotechnology Co., Ltd |
Food Materials Group | Refers to | Shenzhen Food Materials Group Co., Ltd |
Fude Capital | Refers to | Shenzhen Fude State Capital Operation Co., Ltd. |
Agricultural Products | Refers to | Shenzhen Agricultural Products Group Co., Ltd |
SIHC | Refers to | Shenzhen Investment Holdings Co., Ltd. |
Shenzhen SASAC | Refers to | Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission |
CSRC | Refers to | China Securities Regulation Commission |
SSE | Refers to | Shenzhen Stock Exchange |
Shu Lun Pan CPAs | Refers to | BDO China Shu Lun Pan Certified Public Accountant LLP |
Article of Association | Refers to | Article of Association of Shenzhen Cereals Holdings Co., Ltd. |
RMB/10 thousand Yuan | Refers to | CNY/ten thousand Yuan |
Section II Company Profile and Main Financial IndexesI. Company information
Short form for share | SZCH, Shenliang B | Stock code | 000019, 200019 |
Listing stock exchange | Shenzhen Stock Exchange | ||
Chinese name of the Company | 深圳市深粮控股股份有限公司 | ||
Abbr. of Chinese name of the Company | 深粮控股 | ||
English name of the Company(if applicable) | SHENZHEN CEREALS HOLDINGS CO.,LTD | ||
Legal Representative | Zhu Junming | ||
Registrations add. | 8/F, Tower B, No.4 Building, Software Industry Base, South District, Science & Technology Park, Xuefu Rd., Yuehai Street, Nanshan District, Shenzhen | ||
Code for registrations add | 518057 | ||
Historical changes of registered address | The Company listed in 1992, registered address is No.10, Tianbei East, Wenjin North Road, Luohu District, Shenzhen; in 1999 the registered address changed to No.1058, Wenjin North Road, Luohu District, Shenzhen; in 2002 the registered address changed to 28/F, Tower B,C of Bao’an Square, No.1002 Sungang Road, Luohu District, Shenzhen; in 2010 the registered address changed to South half of the 20th floor, Tower of Zhuzilin Education and Technology Building, Futian District, Shenzhen; in 2015 registered address changed to 8/F, Tower B, No.4 Building, Software Industry Base, South District, Science & Technology Park, Xuefu Rd., Yuehai Street, Nanshan District, Shenzhen | ||
Offices add. | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen | ||
Codes for office add. | 518033 | ||
Company’s Internet Web Site | www.slkg1949.com | ||
szch@slkg1949.com |
II. Person/Way to contact
Secretary of the Board | Rep. of security affairs | |
Name | Chen Xiaohua | Chen Kaiyue, Liu Muya |
Contact add. | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen |
Tel. | 0755-83778690 | 0755-83778690 |
Fax. | 0755-83778311 | 0755-83778311 |
chenxh@slkg1949.com | chenky@slkg1949.com、liumy@slkg1949.com |
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report of the Company disclosed | Securities Times; China Securities Journal and Hong Kong Commercial Daily |
Media and Website where the annual report of the Company disclosed | Juchao Website: www.cninfo.com.cn |
Preparation place for annual report | Office of the Board of Directors |
IV. Registration changes of the Company
Organization code | 91440300192180754J |
Changes of main business since listing (if applicable) | On February 18, 2019, the company completed the registration procedures of changes in industry and commerce for business scope and other matters. The main business has newly increased the modern food supply chain services as grain & oil trading, processing, storage and logistics. |
Previous changes for controlling shareholders (if applicable) | On 10 September 1999, Shenzhen Investment Management Co., Ltd. entered into the “Equity Transfer Agreement of Shenzhen Shenbao Industrial Co., Ltd.” with Agricultural Products for 58,347,695 shares of the Company (35% in total shares of the Company) transfer to Agricultural Products with price of RMB 1.95 per share. Agricultural Products comes to the first majority shareholder of the Company after transfer and procedures for the above equity transfer has completed in June 2003. On April 3, 2018, Shenzhen Investment Holdings Co., Ltd. completed the transfer of all of its 79,484,302 shares of A shares in the company to Fude Capital(changed its name to Food Materials Group later). After the completion of the equity transfer, Food Materials Group directly holds 79,484,302 shares of A shares in the company (accounting for 16% of the company’s original total share capital) and controls 19.09% shares of the company through Agricultural Products indirectly, becoming the controlling shareholder of the company. |
V. Other relevant informationCPA engaged by the Company
Name of CPA | BDO China Shu Lun Pan Certified Public Accountant LLP |
Offices add. for CPA | BDO CPAs, 5/F, No.11 Building, Phase II q-plex, No. 4080, Qiaoxiang Rd., Nanshan District, |
Signing Accountants | Qi Tao, Tao Guoheng |
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
2021 | 2020 | Changes in the current year over the previous year (+,-) | 2019 | |
Operating revenue (RMB) | 10,139,563,710.11 | 11,884,527,506.34 | -14.68% | 11,059,984,335.92 |
Net profit attributable to shareholders of the listed Company (RMB) | 428,720,226.09 | 405,088,385.54 | 5.83% | 363,501,809.52 |
Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 377,558,306.28 | 374,210,363.49 | 0.89% | 350,898,272.66 |
Net cash flow arising from operating activities (RMB) | 440,396,029.54 | 286,528,222.27 | 53.70% | 190,053,823.97 |
Basic earnings per share (RMB/Share) | 0.3720 | 0.3515 | 5.83% | 0.3154 |
Diluted earnings per share (RMB/Share) | 0.3720 | 0.3515 | 5.83% | 0.3154 |
Weighted average ROE | 9.13% | 8.99% | 0.14% | 8.46% |
Year-end of 2021 | Year-end of 2020 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of 2019 | |
Total assets(RMB) | 7,669,618,906.32 | 7,309,384,147.93 | 4.93% | 6,775,067,275.86 |
Net assets attributable to shareholder of listed Company(RMB) | 4,630,292,102.34 | 4,595,331,999.76 | 0.76% | 4,420,751,187.57 |
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative, and theaudit report of last year shows that the ability to continue operating is uncertain
□Yes √No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted AccountingPrinciples)
√ Applicable □ Not applicable
Unit: RMB/CNY
Net profit attributable to shareholders of the listed Company | Net assets attributable to shareholder of listed Company | |||
Current period | Last period | Ending amount | Opening amount | |
Chinese GAAP | 428,720,226.09 | 405,088,385.54 | 4,630,292,102.34 | 4,595,331,999.76 |
Items and amount adjusted by IAS | ||||
Adjustment for other payable fund of stock market regulation | 1,067,000.00 | 1,067,000.00 | ||
IAS | 428,720,226.09 | 405,088,385.54 | 4,631,359,102.34 | 4,596,398,999.76 |
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no above mentioned condition occurred in the period
3. Explanation on differences of the data under accounting standards in and out of China
□ Applicable √ Not applicable
VIII. Main financial index disclosed by quarter
Unit: RMB/CNY
Q 1 | Q 2 | Q 3 | Q 4 | |
Operating revenue | 2,529,474,992.85 | 2,732,714,187.68 | 2,292,168,454.87 | 2,585,206,074.71 |
Net profit attributable to shareholders of the listed Company | 136,066,882.15 | 107,779,992.61 | 53,101,621.53 | 131,771,729.80 |
Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses | 133,145,217.46 | 103,894,448.85 | 42,356,846.57 | 98,161,793.40 |
Net cash flow arising from operating activities | -222,629,715.89 | -468,642,435.44 | 800,817,246.32 | 330,850,934.55 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the Company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
Unit: RMB/CNY
Item | 2021 | 2020 | 2019 | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 29,351,180.57 | 2,072,531.42 | -43,069.03 | |
Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 15,871,621.28 | 18,503,372.31 | 12,297,924.24 | |
Fund possession cost reckoned in current gain/loss charged from non-financial enterprise | 436,664.31 | |||
Profit and loss of assets delegation on others’ investment or management | 4,014,308.85 | 12,655,258.64 | 6,299,093.96 | |
Except for the effective hedging operations related to normal business operation of the Company, the gains/losses of fair value changes from holding the trading financial assets and trading financial liabilities, and the investment earnings obtained from disposing the trading financial asset, trading financial liability and financial assets available for sale | 299,292.76 | -151,852.20 | 41,281.76 | |
Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | 4,076,676.65 | 1,236,198.70 | 1,035,149.32 | |
Other non-operating income and expenditure except for the aforementioned items | 13,089,042.88 | 2,423,255.86 | -4,544,601.53 | |
Other gains/losses items that conform to the definition of non-recurring gains/losses | 496,383.61 | |||
Subtotal |
Less: impact on income tax | 14,600,145.88 | 5,591,230.45 | 2,149,564.84 | |
Impact on minority shareholders’ equity (after-tax) | 940,057.30 | 765,895.84 | 769,341.33 | |
Total | 51,161,919.81 | 30,878,022.05 | 12,603,536.86 | -- |
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/lossesInformation on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurringprofit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurringprofit(gain)/loss
Section III Management Discussion and AnalysisI. Industry of the Company during the reporting period
(i) The basic situation, development stage, cyclical characteristics of the industry and the company’s position inthe industry shall highlight the major changes occurring during the reporting period.
At present, the domestic grain and oil trade, processing, and logistics industry is a full-circulation field with a highmarketization degree, many participating companies, and fierce competition. The central enterprises and largelocal grain enterprises have relatively complete warehousing and logistics facilities and enjoy a number ofnational policy supports; in recent years, a large number of outstanding national and regional private grainenterprises have come to the fore; with the development of grain marketization in China, foreign-funded grainenterprises with rich resources, strong fund strength and mature management experience cut a figure in China’sgrain market, which further intensifies the competition in the grain and oil industry. The grain industry inShenzhen is developing vigorously. There are many grain and oil processing enterprises and many small andmedium-sized enterprises with a certain scale in the area. With the advancement of the “dual district construction”,the population of the Pearl River Delta cities is increasing, people’s living standards is being improved, andcompetition in the grain market is going orderly and unprecedentedly intense.
Affected by uncertain factors such as repeated COVID-19 outbreaks and frequent natural disasters, in the first halfof 2021, the food and grain prices in the international market continued the upward trend in 2020. However, underthe expectation that global food and grain production would continue to increase, the international food and grainprices fell from high levels in the second half of the year. It is expected that the international food and grain pricesmay be differentiated in 2022, showing a trend of narrow fluctuations of rice and corn at existing levels,fluctuations of soybeans, and wheat rising first and then falling. In 2021, the price trends of different varieties ofgrain in china was differentiated. Among them, the prices of corn, wheat and soybeans increased significantly, allhitting record highs, but the trend varied throughout the year, the price of early rice rose, while the price of middleand late rice fell, and six provinces launched the minimum purchase price plan for rice. It is expected thatdomestic grain prices will continue to maintain a high level in 2022, and the characteristics of superior grain andsuperior price will be more obvious.
In 2021, from the perspective of the international market operation, the global rice supply was abundant and theinternational market price dropped slightly; the main wheat exporting countries reduced production and theinternational wheat price rose strongly. The global corn demand was strong, and prices had narrow fluctuationsafter rising and falling. The supply of soybeans was tight at first but then loose, and the price rose at first and thenfell. Judging from the operation of the domestic market, the supply of rice was abundant and the price has droppedas a whole; the demand for wheat forage increased significantly, and the new wheat had a high price; corn
production and demand had slight surplus, the price had wide fluctuations; domestic soybean output declined, sothe price ran at high levels.
(ii) The major impact of newly promulgated laws, administrative regulations, departmental rules, and industrypolicies on the industry.On February 15, 2021, the State Council announced that the revised Regulations on the Administration of GrainCirculation (hereinafter referred to as “the Regulations”) would come into force on April 15, 2021. The revision ofthe Regulations is not only a continuation of previous policies, but also an adaptation to the new changes, newfeatures and new requirements of the grain circulation situation in the new era, which indicates that China’s graincirculation work has entered a more standardized and legalized track, and is of great significance to promotegovernance ability and management level of grain circulation, protect the legitimate rights and interests of grainproduction operator and consumer, safeguard the grain market and price stability, and ensure national foodsecurity.
The revised Regulations center on the shortcomings and weaknesses of the current grain circulation management,focus on key issues and outstanding issues, put forward several new measures and new provisions. The first is toclarify the main body of management. The responsibilities of grain circulation supervision and management of theNational Development and Reform Commission, the National Food and Strategic Reserves Administration, themarket supervision and management and the hygiene and health departments have been further clarified to avoidoverlapping functions and prevent the emergence of a “vacuum zone” of supervision. The second is to refine themanagement objects. For all operators engaged in grain purchase, sales, storage, and processing, as well as feedand industrial grain enterprises, scientific and practical management methods have been determined according totheir different market behaviors. The third is to enrich the management content. Focus on major fields and keylinks in grain circulation, further standardize the business activities of grain operators, strictly enforcepolicy-based grain management, optimize grain market supervision, strengthen grain quality and safetysupervision, and increase the content of regulations on food loss and waste. The fourth is to improve themanagement methods. Improve the market monitoring and early warning system, establish credit files of grainoperators, further increase the punishment for illegal acts, and improve the awareness of law-abiding and honestyof grain operators. At the same time, the prohibited acts are further clarified and the corresponding legalresponsibilities are regulated.
II. Main businesses of the Company during the reporting period
Main business of the Company includes the wholesale and retail business, food processing and manufacturingbusiness, leasing and commerce service business.
The wholesale and retail business are mainly rice, wheat, rice in the husk, corn, sorghum, cooking oil and othervarieties of grain and oil as well as the sales of fine tea, beverage and condiment. During the reporting period, the
company overcame many adverse factors such as shortage of grain source and fluctuation of grain price under theinfluence of the pandemic, took multiple measures to ensure supply and stable supply, and continued to optimizethe products, strengthen the brand and expand the market. Mainly supplied wheat, rice, corn, barley, sorghumand other raw grain to customers such as the industry's large traders, feed processing and flour processingenterprises and so on; mainly sold rice, flour, cooking oil, high-quality tea, beverages and other products todemand units and community residents.
Food processing and manufacturing business are mainly the processing the technology research in aspect of flour,rice, cooking oil, tea and natural plant extracts, beverage and condiments etc. The company's flour brands andproducts include “Jinchangman”, “Yingshanhong” and “Hongli” series bread flour; “Clivia” and “Canna” seriestailored flour for cakes and steamed bun; “Sunflower” wheat flour for noodles and cookie flour; “Tianlvxiang”wheat flour for bread, refined flour and dumpling flour etc.; Rice products include “Shenliang Doximi”,“Guzhixiang”, “Gufengxianman”, “Runxiangliangpin”, “Hexiang” and “Taitai Fukou” etc. Cooking oil productsinclude brands such as “Shenliang Fuxi”, “Shenliang Jinxi” and “Youtian” etc. Tea brands mainly include"Jufangyong" tea; "Yichong" fresh extract, "Jindiao" instant tea powder and other tea deep-processed products, aswell as "Shenbao" chrysanthemum tea, lemon tea, and "Cha Mi Xiang Qi" and other series of tea drinks.Condiments are mainly "Sanjing" oyster sauce and sauces. Several brands have formed product series, including"SZCH Yushuiqing" rice, noodles, oil, and coarse cereals series, "Jiaxi" rice & noodles series, "Jinchangman"noodles & oil series, Black-faced Spoonbill tea, rice, oil, drinking water, non-staple food and condiment series,etc., and the launch of Yueqiu tea wine continues to enrich the product structure.
The leasing and business service refers to providing the professional import & export trade, warehousing &storage, logistic & distribution, quality inspection & information technology services, property leasing andmanagement, business operation management services for all kinds of clients in the upstream and downstream ofthe industrial chain, by using the advantage of brand reputation, operation service capacity and facility technologythat accumulated in field of grain and oil market. Its Dongguan smart gain logistics complex is a comprehensivegrain distribution service body integrating five major functions: grain & oil terminal, transit reserve, testing &distribution, processing & production and market trading; The Shenliang Quality Inspection was awarded as“Guangdong Shenzhen National Grain Quality Monitoring Station”. the subsidiary Shenliang Cold Chain providescold chain of food storage and distribution services to the customers, and Shenliang Property is a professionalassets management platform enterprise.
II. Core Competitiveness AnalysisThe company enhances the endogenous power by deepening reform, strengthens the "extensive" development byinnovation cooperation, and continuously upgrades and transforms the governance pattern, development quality,and guarantee ability, and has embarked on a path of sustainable and high-quality development throughself-innovation, and become a highly competitive, innovative and influential "ten billion" backbone grainenterprise in the domestic grain industry.
(1)Operation mechanism
The core management team of the company has rich experience, and has a strong strategic vision and pragmaticspirit. Combined with the actual development of the Company, formulated a set of effective mechanisms topromote the quality and efficiency of business development. The company vigorously promotes the innovation andtransformation of business models, and actively promotes the transition from “trade-oriented enterprises” to“service-oriented enterprises”, and from “operational management and control” to “strategic management andcontrol”. In business control, through the own information management system, realizes a seamless link betweenthe “operation” and “planning, capital, quality inspection, inventory, risk control and discipline”, building a strict“six-in-one” system of controlling to effectively reduce the operational risks while fully participating in themarket competition, and achieving a deep integration of "ensuring grain security" and "promoting development".Through deeply promotes the strategy of “talent strengthening the enterprises”, continuously innovative talenttraining mechanism to creates a high-quality talent supply chain, the company has established an open talent teamto meet the long-term development of enterprises and reserve intelligence for the enterprise upgrading anddevelopment. The company has innovated and implemented the EVA performance appraisal mechanism andestablished a result-oriented incentive and restraint assessment mechanism which effectively built the performanceculture and stimulated the viability within the enterprise. The company insists on cultivating and advocating thecorporate culture with “people-oriented, performance first, excellent quality, and harmony” as the core values,combines the personal development goals of employees with the corporate vision, and enhances the cohesivenessand centripetal force of the enterprise.
(2)Business model
The company deeply engages in segmenting the target market, provides diversified product supply services forcustomers in different areas of the industry chain, establishes a multi-level product supply network coveringonline and offline, and realizes the transformation of product supply to "remoteness, intelligentization, andself-service". In terms of grain and oil trading services, the bulk commodity trading platform www.zglsjy.com.cncreated by its subsidiary Hualian Company efficiently integrates business flow, logistics, and information flow,improves circulation efficiency, and provides spot listings, one-way bidding, basis price, financing, logistics,quality inspection, information and other services for internal business units, suppliers and customers. In terms ofe-commerce, SZCH doximi actively promotes the development of new grain retail formats such as "Internet +Grain" and "Community Automatic Grain Sales Stations", and has opened channels on e-commerce platformssuch as Tmall and Jingdong Mall so as to promote the deep integration of online and offline e-commerceplatforms. In terms of group meal supply, its subsidiary SZCH Beige has established a one-stop distributionservice platform serving large end customers, providing high-quality and safe smart group meal food services forgroup users such as enterprises, schools, and government institutions. In terms of comprehensive tea drinkingservices, its subsidiary Shenbao Investment has launched a micro-complex "Cha Mi Xiang Qi" with acombination of "light drinks", "light food" and "light retail" functions.
(3) Information technology
The company attaches great importance to the transformation and upgrading of traditional industries with moderntechnological means, and actively introduces new-generation information technologies such as the Internet ofThings, cloud computing, big data, and mobile Internet into grain management, forming an information systemthat can cover the entire industrial chain of the grain industry, and promoting the "Internet + Grain" industrydevelopment. The company’s informatization construction capability is at the leading level in the grain reservesindustry, taking the lead in building the warehouse management of "standardization, mechanization,informatization, and harmlessness" in the industry, the self-developed "Grain Logistics Information System(SZCG GLS)" has built a framework for the construction of grain informatization work, innovated the grainmanagement model, led the development direction of the grain industry, and became a benchmark for the nationalgrain industry. The project was awarded the “National IoT Major Application Demonstration Project” by theNational Development and Reform Commission and the Ministry of Finance. The company has undertaken anumber of national-level research projects, the results of a number of informatization projects have won national,provincial and municipal awards, and more than 30 information systems have been developed and are operatingnormally.
(4) R&D capabilities
The company has strong research and development capabilities in the field of food and beverage, gathers leadingtechnological advantages and equipment systems. The subsidiary Shenbao Huacheng owns the Jiangxi provincialenterprise technology center, Shenzhen municipal research and development center (technology center) andShenzhen plant deep processing technology engineering laboratory and have obtained national high-techenterprise certification. And also owns independently researched and developed more than 50 patentedtechnologies for tea powder, tea concentrated juice and plant extraction, published more than 30 scientific papers,and won a number of awards such as Science and Technology Progress Award of the Ministry of Agriculture,Shennong Chinese Agricultural Science & Technology Award of the Chines Society of Agriculture, Science &Technology Achievement Award of Chinese Academy of Agricultural Sciences, Science and Technology Award ofChina National Light Industry Council, Zhejiang Science and Technology Award, Jiangxi Science and TechnologyProgress Award and Shenzhen Science & Technology Progress Award, etc., presided over or participated in thepreparation of a national standards "GBT 21733-2008 Tea Drinks" and two industry standards, i.e. "TeaConcentrated Juice for Food Industry - Light Industry Standard QB-T 4068- 2010" and "Instant Tea Powder forFood Industry - Light Industry Standard QB-T 4067-2010". Wuhan Jiacheng Company is a national-levelhigh-tech enterprise, a supporting unit of Hubei Food Fermentation Engineering Technology Research Center, akey backbone enterprise in the national biological fermentation industry, a unit undertaking national agriculturaltransfer funds, innovation funds, and major key projects, and has participated in drafting a number of nationalstandards, industry development plans and related policies, and has published more than 30 papers, 3 monographs,and has 8 national patents for invention.
(5) Quality control
The company implements grain and oil quality standards that are higher than national standards. The subordinate
SZCG Quality Inspection has the leading grain and oil quality inspection technology and equipment in thedomestic grain industry, and is included in the national grain quality supervision and inspection system. It wasawarded the "Guangdong Shenzhen National Grain Quality Monitoring Station" by the State Administration ofGrain and obtained the assessment certificate of agricultural product quality and safety inspection agency (CATL)and the qualification certificate of inspection agency (CMA) etc, and total number of certified testing capabilityitems is 756. Shenliang Quality Inspection listing pesticide residues, heavy metal pollutants, fungal toxins andother hygiene indicators as well as food taste indicators in the daily inspection indicators. It has the ability todetect four types of indicators of generic quality, storage quality, food security & quality and other four types ofindicators of testing capacity, the detection capability can meet the relevant quality detection requirements of grainand oil products, and can accurately analyze the nutritional composition and hygienic indicators of the grain anddetermine its storage and edible quality. It has created the "digital laboratory" in the grain industry, real-timemonitoring of the entire process of cuttings, testing, distribution, etc., relying on collaborative platforms to save,retrieve, integrate, analyze and share grain and oil testing data to achieve 100% coverage of grain & oil productinspection. Has the internationally recognized quality control system. Subsidiary Shenbao Huacheng Companyhas established a quality control system recognized by large international food and beverage companies, and hassuccessfully passed the quality certification of global suppliers of Coca-Cola, Lipton, Kraft, Suntory, and Nestlé.Subsidiary Wuhan Jiacheng Company’s series of products have passed the certification of European OrganicProducts (EOP), US National Organic Program and other relevant system certification, and also obtained theproduct registration certificate of Russian red currant and special registration certificate of US FDA products forimport, etc.
(6) Brand effect
The company was awarded the "Top 500 Service Enterprises in China", “China’s Most Influential Grain & OilGroup”, "China Top Ten Grain and Oil Groups", "China Top 100 Grain and Oil Enterprises", "National LeadingEnterprise Supporting Grain and Oil Industrialization", “National Quality Benchmark” and “Top 10 Food DigitalTechnology Applications”. It has been selected as one of the “First Batch of National Emergency Food SecurityEnterprises”, “Top 100 Agricultural Industrialized Head Enterprises in China”, “Top 10 Head Enterprise in theGrain Industry” and “The National Demonstration Enterprise of Assured Gain & Oil Demonstration Project”, etc.,it is the “Rice Bag” trusted by the public. Strengthen brand leadership, actively explore and cultivate excellentpublic brands, rely on quality to win recognition, reputation and market share, and form a series of high-qualitygrain and oil products centered on China Good Grain and Oil, Shenzhen Well-known Brands, and ShenzhenProducts. The company owns well-known brands and platforms, such as “Shenzhen Flour”, “SZCH Duoxi”,“SZCH Yushuiqing”, “Big Kitchen”, “Shenbao Teabank”, “Jufangyong”, “Cha Mi Xiang Qi”, “Sanjing”,“www.zglsjy.com.com”, and “doximi.com”, and gradually build an industrial system with complete “rice” + “tea”elements.
IV. Main business analysis
1. Overview
2021 was the first year for the implementation of the “14
th
Five-Year Plan” strategic plan, and was also a key andcritical year for the three-year reform of state-owned enterprises. The company insisted on integrating the party’sleadership into corporate governance, insisted on integrating the company’s strategy into the national strategy, andadhered to the main responsibility and main business of food supply chain security, focused on strategic goals,resolutely explored the beneficial practice of enterprise reform and the stable and coordinated advancement of thefood supply chain, comprehensively implemented various reform and development tasks, and steadily took solidsteps in the first year of the “14
th
Five-Year Plan”. Achieving the operating revenue of 10.14 billion yuan for yearof 2021, a y-o-y decline of 14.68%; total profit was 516 million yuan, a y-o-y growth of 12.73%; the net profitattributable to shareholder of listed company was 429 million yuan, a y-o-y increase of 5.83%.
(1)Main business development
During the reporting period, the company based on its own advantages and industrial development, usedinformation technology, innovated and opened up the grain and oil products supply channels and trading methods,created a new pattern for tea and food business industry, built a multi-group and multi-channel food supply chainand service network, expanded the effective supply of medium- and high-end grain, oil, and food, and aims tomeet people's needs of "quality, diversity, nutrition, health, green, and convenience", and promoted thetransformation of grain and oil products from "eat full" to "eat well". The company continues to focus on graincirculation services, and completes grain and oil supply services with quality and quantity by actively buildingsupply chains, continuously extending the industrial chains, innovating business models, and upgrading theindustrial value chains, the development of the main grain and oil business continues to improve.
(2) Progress of key projects
The Northeast Grain Source Base integrates resources according to the operational needs, ShuangyashanCompany completed the absorption and merger of Hongxinglong Company, further compressing the propertyrights layer and strengthening the management, the rice processing plan in grain industrial park was steadily underconstruction.
The construction and operation of Dongguan grain logistics nodes achieved a new leap forward, completed theequity acquisition and incorporated into the construction planning of Guangdong-Hong Kong- Macao Greater BayArea Grain Emergency Security Center, the comprehensive guarantee capacity of the grain storage and logistics ismore reliable.(iii) Sustainable and innovative developmentDuring the reporting period, the company deeply integrated a new generation of information technologies such as
the Internet of Things, cloud computing, big data, mobile internet, and artificial intelligence with the enterpriseoperation and management by increasing the application of informatization innovation achievements.Scientifically formulated the “14
th
Five-Year” digital construction plan, and successively implemented new retailmembership management and payment management, grain reserve purchase and sales plan management (phase II),financial sharing center, engineering management information system, and human s-HR system (phase IV), partybuilding information management platform, “one enterprise one screen” intelligent management platform (phaseII), network and information security level protection 2.0 and other projects, accelerated the transformation ofbusiness management mode with digital thinking, strengthened the penetration of digital technology, ran throughbusiness processes, multi-level application scenarios of management process, and fully empowered enterprisevalue chain and smart supply chain. Up to now, the company has developed and operated more than 30information systems.
(iv) Other key tasksThe first was to focus on people’s well-being. Focused on expanding the grain, oil and food industry, meeting therequirements of new markets, new demands and new consumption, and building a higher quality assurance system,and vigorously implemented a number of high-quality grain projects. Acquired 51% equity of Wuhan JiachengCompany, entered the high-tech industry of biological fermentation, integrated “red yeast rice + grain”, andentered the field of health from “grain” to “food”; opened the first smart group meal, created a chain new brand of“Zhen Shi Hui”; coordinated and promoted the smart food industry (Huizhou) project to lead the upgrading of theregional food industry; the flour company absorbed and merged the Dongguan Industry and Trade Company,comprehensively integrated production capacity, and strived to build “the leading enterprise group in the firstcamp of special flour in South China”; Hualian Company promoted the construction of “Liang Qiao Network”with the help of DCE to build a one-stop spot trading platform for grain and agricultural products; Big KitchenCompany actively participated in the centralized purchasing and centralized distribution project of rice, noodlesand oil in Shenzhen school canteens to help promote the governance reform of school canteens; Cold ChainCompany achieved new breakthroughs in the expansion of external warehouse business, and newly addedFenggang City Distribution Center and Guangzhou Huangpu Warehouse; Shenbao Huacheng passed the nationalhigh-tech enterprise qualification certification, and added 3 new patents for invention within the year, and madepositive progress in 4 annual research projects; Shenbao Investment enriched the tea gift product series, and thetea gift business doubled; Shenliang Food improved its product structure and promoted the research anddevelopment of new products, and the beverage and condiment business gradually recovered from the impact ofthe pandemic.
The second was to cultivate well-known brands. Strengthened brand leadership, actively explored and cultivatedexcellent public brands, relied on quality to win recognition, reputation and market share, and formed a series ofhigh-quality grain and oil products centered on China Good Grain and Oil, Shenzhen Well-known Brands andShenzhen Products. During the year, it was awarded 1 Shenzhen Well-known Brand, 16 new Shenzhen Products.At the same time, we did a good job in channel construction, built an economical, efficient and convenient sales
network, so that good grain and oil can be brought to the dining-table.The third was to strengthen corporate governance. Unswervingly implemented the new development concept,focused on improving the system and mechanism of the modern enterprise system with Chinese characteristics,innovative development system and mechanism, and enterprise compliance management system, and effectivelytransformed the institutional advantages into the driving force for improving governance efficiency and achievinghigh-quality development. Sorted out the “Four Lists” of corporate governance, explored self-operationmanagement of subordinate enterprises, amoeba operation and other management and control modes, formulatedproject management and control systems, improved procurement work guidelines, refined import business andfund management risk points, actively promoted the integration of business and finance, and improved the qualityof information disclosure.
The fourth was to improve human resources efficiency. Implemented an active, open and effective talent gatheringpolicy, and continuously improved a flexible and efficient talent training support mechanism, a scientific andpractical talent classification evaluation mechanism and an innovation incentive mechanism; built a talent supplychain by classification and stratification, and completed the tenure system and contracting management ofmanagers at all levels, built an “internal talent market”, optimized talent exchange and rotation; practiced theconcept of innovation-driven development, and introduced “innovation factors” in the EVA assessment.
2. Revenue(Income) and cost
(1) Constitute of operating revenue
Unit: RMB/CNY
2021 | 2020 | Increase/decrease y-o-y (+,-) | |||
Amount | Ratio in operating revenue | Amount | Ratio in operating revenue | ||
Total operating revenue | 10,139,563,710.11 | 100% | 11,884,527,506.34 | 100% | -14.68% |
According to industries | |||||
Wholesale and retail | 8,364,236,216.21 | 82.49% | 10,366,006,873.93 | 87.23% | -19.31% |
Leasing and business services | 1,003,311,609.05 | 9.90% | 928,509,293.46 | 7.81% | 8.06% |
Manufacturing | 772,015,884.85 | 7.61% | 590,011,338.95 | 4.96% | 30.85% |
According to products | |||||
Grain & oil trading and processing | 8,898,880,048.64 | 87.76% | 10,759,070,663.03 | 90.53% | -17.29% |
Grain & oil storage logistics and services | 883,450,005.50 | 8.71% | 813,243,753.62 | 6.84% | 8.63% |
Food, beverage and tea processing | 237,372,052.42 | 2.34% | 198,163,247.35 | 1.67% | 19.79% |
Leasing and others | 119,861,603.55 | 1.19% | 114,049,842.34 | 0.96% | 5.10% |
According to region | |||||
Domestic market | 10,096,185,227.04 | 99.57% | 11,849,028,935.33 | 99.70% | -14.79% |
Exportation | 43,378,483.07 | 0.43% | 35,498,571.01 | 0.30% | 22.20% |
According to sale model |
(2) Industries, products, regions and sales model that account for more than 10% of the operating revenueor operating profit of the Company
√ Applicable □Not applicable
Unit: RMB/CNY
Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
According to industries | ||||||
Wholesale and retail | 8,364,236,216.21 | 7,828,435,792.29 | 6.41% | -19.31% | -20.86% | 1.84% |
According to products | ||||||
Grain & oil trading and processing | 8,898,880,048.64 | 8,367,639,055.64 | 5.97% | -17.29% | -18.69% | 1.62% |
According to region | ||||||
Domestic market | 10,096,185,227.04 | 8,832,723,115.03 | 12.51% | -14.79% | -17.44% | 2.80% |
According to sale model |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √Not applicable
(3) Revenue from physical sales larger than revenue from labors
√ Yes □ No
Industries | Item | Unit | 2021 | 2020 | Increase/decrease y-o-y (+,-) |
Wholesale and retail | Sales volume | Ton | 3,195,514.47 | 4,197,687.87 | -23.87% |
Storage | Ton | 1,172,796.47 | 1,255,984.4 | -6.62% |
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √Not applicable
(4) Performance of significant sales contracts, major procurement contract entered into by the company upto the current reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries and products
Unit: RMB/CNY
Industries | Item | 2021 | 2020 | Increase/decrease y-o-y (+,-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Wholesale and retail | Raw materials | 7,828,435,792.29 | 88.36% | 9,892,157,934.22 | 92.23% | -20.86% |
Unit: RMB/CNY
Products | Item | 2021 | 2020 | Increase/decrease y-o-y (+,-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Grain & oil trading and processing | Raw materials | 8,280,585,686.32 | 93.47% | 10,254,279,332.43 | 95.95% | -19.25% |
Grain & oil trading and processing | Labor wage | 26,124,548.68 | 0.29% | 6,188,358.99 | 0.06% | 322.16% |
Grain & oil trading and processing | Cost of production | 60,928,820.64 | 0.69% | 30,088,207.55 | 0.28% | 102.50% |
ExplanationN/A
(6) Whether the changes in the scope of consolidation in Reporting Period
√Yes □No
During the reporting period, newly established the Dongguan Shenliang Hualian Grain & Oil Trading Co., Ltd, acquired the WuhanJiacheng Biotechnology Co., Ltd and cancellation of the Heilongjiang Hongxinglong Nongken Shenxin Cereals Industrial Park Co.,ltd and Shenzhen Shenbao Property Management Co., Ltd.
(7) Material changes or adjustment for products or services of the Company in reporting period
□ Applicable √ Not applicable
(8) Major sales clients and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) | 2,819,763,997.71 |
Proportion in total annual sales volume for top five clients | 27.80% |
Proportion in total annual sales volume for related sales among top five clients | 0.00% |
Top five clients of the Company
Serial | Name | Sales (RMB) | Proportion in total annual sales |
1 | Client I | 1,301,742,675.55 | 12.84% |
2 | Client II | 474,730,067.61 | 4.68% |
3 | Client III | 436,463,701.50 | 4.30% |
4 | Client IV | 313,420,181.38 | 3.09% |
5 | Client V | 293,407,371.67 | 2.89% |
Total | -- | 2,819,763,997.71 | 27.80% |
Other explanation on main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) | 2,829,679,855.63 |
Proportion in total annual purchase amount for top five suppliers | 31.75% |
Proportion in total annual purchase amount from related purchase among top five suppliers | 0.00% |
Top five suppliers of the Company
Serial | Name | Sum of purchase (RMB) | Proportion in total annual sum of purchase |
1 | Supplier I | 985,235,080.81 | 11.05% |
2 | Supplier II | 498,478,693.52 | 5.59% |
3 | Supplier III | 481,827,291.05 | 5.41% |
4 | Supplier IV | 463,206,372.50 | 5.20% |
5 | Supplier V | 400,932,417.75 | 4.50% |
Total | -- | 2,829,679,855.63 | 31.75% |
Other explanation on main suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB/CNY
2021 | 2020 | Increase/decrease y-o-y (+,-) | Note of major changes | |
Sales expenses | 250,216,473.67 | 201,304,842.30 | 24.30% | |
Administration expenses | 300,735,585.34 | 285,083,453.91 | 5.49% | |
Financial expenses | 56,368,586.68 | 14,907,763.94 | 278.12% | Engineering project was transferred to fixed assets in the previous year and the expense-based interest increased |
R&D expenses | 20,689,494.13 | 16,617,944.25 | 24.50% |
4. R &D investment
√ Applicable □ Not applicable
Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
SZCH “One enterprise, one screen” management platform (Phase II) development | Based on the first phase, upgrading and optimized the function of “One enterprise, one screen” management platform (Phase II) | Completed | The “One enterprise, one screen” management platform (Phase II) has better functions, more real-time data display, more beautiful system interface, and can well show the Company’s business highlights and characteristics | A better presentation of the Company’s business highlights and characteristics, and provides a data support for the superior to guide the business decisions |
SZCH grain depot “data access video access” management system development | Intelligent upgrade of all owned and leased warehouses | Completed | To meet the provincial and municipal requirements for grain depot “data access video access” , also to enhance the intelligent management standards of the grain depot | Further enhance the intelligent management standards of the grain depot and better meet the superior regulatory requirement |
SZCH network security grading protection 2.0 construction | Carrying out the construction of network security grading protection 2.0 by strengthening the | Completed | Obtain the network security grading protection 2.0 certificate and further reinforced the network security grading protection | Further improve the network security grading protection and enhance the capability in network |
network hardware and software construction | of the Company | security protection | ||
SZCH human resources management system (phase IV) development | Based on the phase III, further optimized the functional modules according to the individual needs of the Company | Completed | Further optimized the functional modules of human resources management system to meet the business needs of HR | Further enhance the digital management of the HR |
SZCH discipline & integrity file management system development | Adding the module of “integrity profile” for middle management personnel to the “discipline inspection information platform” already built | Completed | Further improve the daily supervision system based on the implementation of work requirements of the higher level | Further enhance the intelligent supervision standards of the Company |
SZCH optimization of the supply chain management system and modification of intermediate service interface | Implementing the reserve policy requirements by increasing the inventory commodity attributes and accounting items for grain and oil products, etc. with systematic and forward-looking thinking | In progress | Further meeting the business needs, and optimized the current supply chain systems and modification of intermediate service interface | Lays out the foundation of data management for the own development requirements such as undertaking the multiple attributes of grain and oil products and financial accounting of different attributes of grain and oil products in the future |
SZCH purchase, sales and inventory plan management system (phase II) development for the grain and oil products | Adding the purchase, sales and inventory plan management module for grain and oil products on based of the the supply chain system, including plan preparation, plan filling, plan monitoring, plan review and plan analysis, etc. | In progress | Further strengthen the accuracy and timeliness of the grain and oil products purchase and sales plan filling and approval | Further enhance the digital management capability of the grain and oil products purchase and sales planning |
SZCH new retail membership management and payment management | To serve the new retail business development model and better adapt to the consumer habits, enhance the consumer | In progress | Realize the functions of information collection, consumer insight, value analysis and accurate reach in one by using the new | Service the Company to build a strategic goals of “intelligent grain, oil and food supply chain quality service provider” |
system development for the new retail | experience in purchasing, while further strengthening the unified management of membership data and payment data to achieved an accurate marketing and scientific decision-making | generation information technology of big data and mobile internet |
Personnel of R&D
2021 | 2020 | Change ratio(+,-) | |
Number of R&D (people) | 113 | 93 | 21.51% |
Ratio of number of R&D | 8.84% | 7.46% | 1.38% |
Educational background | —— | —— | —— |
Undergraduate | 58 | 46 | 26.09% |
Master | 26 | 18 | 44.44% |
Age composition | —— | —— | —— |
Under 30 | 36 | 34 | 5.88% |
30~40 | 39 | 36 | 8.33% |
Investment of R&D
2021 | 2020 | Change ratio(+,-) | |
R&D investment (RMB) | 84,730,659.76 | 46,739,359.46 | 81.28% |
R&D investment/Operation revenue | 0.84% | 0.39% | 0.45% |
Capitalization of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
Capitalization of R&D investment/R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB/CNY
Item | 2021 | 2020 | Increase/decrease y-o-y (+,-) |
Subtotal of cash in-flow from operation activity | 11,397,219,997.66 | 11,669,207,152.35 | -2.33% |
Subtotal of cash out-flow from operation activity | 10,956,823,968.12 | 11,382,678,930.08 | -3.74% |
Net cash flow arising from operating activities | 440,396,029.54 | 286,528,222.27 | 53.70% |
Subtotal of cash in-flow from investment activity | 517,815,659.81 | 887,924,327.47 | -41.68% |
Subtotal of cash out-flow from investment activity | 1,061,777,870.59 | 985,312,767.83 | 7.76% |
Net cash flow from investment activity | -543,962,210.78 | -97,388,440.36 | -458.55% |
Subtotal of cash in-flow from financing activity | 3,191,992,562.34 | 1,252,948,640.66 | 154.76% |
Subtotal of cash out-flow from financing activity | 3,229,400,452.40 | 1,406,472,553.17 | 129.61% |
Net cash flow arising from financing activity | -37,407,890.06 | -153,523,912.51 | 75.63% |
Net increased amount of cash and cash equivalent | -141,124,145.74 | 35,539,468.09 | -497.09% |
Reasons for y-o-y relevant data with major changes
√ Applicable □ Not applicable
(1)The cash in-flow from investment activity decreased by 41.68% compared with the same period last year, mainly due to thedecrease in financial investment during the period;
(2)The cash out-flow from investment activity increased by 7.76% compared with the same period last year, mainly because theminority interest of Dongguan Logistic are acquired in the Period and the investment expenses on Wuhan Jiacheng;
(3) The cash in-flow from financing activity increased by 154.76% compared with the same period last year, mainly due to theincrease in streaming loans in the Period;
(4)The cash out-flow from financing activity increased by 129.61% compared with the same period last year, mainly due to increasein streaming loan repayment in the Period;
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable √ Not applicable
V. Analysis of the non-main business
√ Applicable □ Not applicable
Unit: RMB/CNY
Amount | Ratio in total profit | Description of formation | Whether be sustainable | |
Investment income | 4,289,604.50 | 0.83% | Unsustainable | |
Gains/losses of fair value variation | 299,292.76 | 0.06% | Unsustainable | |
Asset impairment | -184,486,526.84 | -35.74% | Provision for the decline in value of inventories | Unsustainable |
Non-operating income | 14,640,665.53 | 2.84% | Compensation for expropriation | Unsustainable |
Non-operating expense | 1,505,363.93 | 0.29% | Unsustainable | |
Assets disposal | 29,437,150.82 | 5.70% | Disposal of the houses and buildings of Yingkou | Unsustainable |
VI. Analysis of assets and liability
1. Major changes of assets composition
Unit: RMB/CNY
Year-end of 2021 | Year-begin of 2021 | Ratio changes | Notes of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 50,409,923.65 | 0.66% | 190,494,225.94 | 2.61% | -1.95% | |
Account receivable | 283,047,341.62 | 3.69% | 198,311,102.17 | 2.71% | 0.98% | |
Contract assets | 0.00% | 0.00% | 0.00% | |||
Inventory | 3,460,618,674.81 | 45.12% | 3,418,328,974.27 | 46.75% | -1.63% | |
Investment real estate | 233,096,698.49 | 3.04% | 253,037,899.57 | 3.46% | -0.42% | |
Long-term equity investment | 73,490,443.49 | 0.96% | 73,215,147.84 | 1.00% | -0.04% | |
Fix assets | 2,127,831,149.19 | 27.74% | 1,122,692,490.55 | 15.36% | 12.38% | Parts of the project in Shenliang Dongguan Grain Logistic were transferred to |
fixed assets | ||||||
Construction in progress | 207,946,539.97 | 2.71% | 1,045,643,295.57 | 14.30% | -11.59% | Parts of the project in Shenliang Dongguan Grain Logistic were transferred to fixed assets |
Right-of-use assets | 97,648,674.06 | 1.27% | 2,120,031.14 | 0.03% | 1.24% | Parts of the new project in the lease of Fenggang storage |
Short-term loans | 504,766,782.25 | 6.58% | 110,318,727.12 | 1.51% | 5.07% | Increase in streaming loans in the Period |
Contract liability | 182,972,314.85 | 2.39% | 108,975,866.82 | 1.49% | 0.90% | |
Long-term loans | 730,521,692.22 | 9.52% | 841,864,531.75 | 11.51% | -1.99% | |
Lease liability | 80,173,743.75 | 1.05% | 1,839,885.54 | 0.03% | 1.02% | Parts of the new project in the lease of Fenggang storage |
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
Unit: RMB/CNY
Item | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Amount of sale in the period | Other changes | Amount in the end of period |
Financial assets | ||||||||
1.Trading financial assets (excluding derivative financial assets) | 160,621,806.51 | 438,963.99 | 50,000,000.00 | 211,060,770.50 |
Other non-current financial assets | 57,500.00 | 57,500.00 | ||||||
Aforementioned total | 160,679,306.51 | 438,963.99 | 0.00 | 0.00 | 50,000,000.00 | 0.00 | 0.00 | 211,118,270.50 |
Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changeN/AWhether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
Item | Book value at period-end | Reasons for restriction |
Monetary fund | 1,039,843.45 | Guarantee deposit and credit deposit, etc. |
Fix assets | 508,407,161.32 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. |
Intangible assets | 44,245,302.46 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics has subordinate mortgaged the real estate property rights of the structures of Yue (2020) Dongguan Property Right No. 0127118, Yue (2020) Dongguan Property Right No. 0127119, Yue (2020) Dongguan Property Right No. 0127120, and Yue (2020) Dongguan Property Right No.0119705 at No. 10, Jingang South Road, Machong Town, Dongguan City and other aground buildings as collateral for the loan. |
Intangible assets | 33,096,312.71 | According to the loan contract Yue DG2017 NGDZ No. 006 signed by Dongguan Food Industrial Park, a subsidiary of the Company, with Bank of Communications Co., Ltd., Dongguan Branch, Dongguan Food Industrial Park has mortgaged its two pieces of land "DFGY (2009) DT No. 190" and "Yue (2020) Dongguan Real Estate Right No. 0321771" to the Bank of Communications Co., Ltd., Dongguan Branch as loan collateral. |
Intangible assets | 35,002,719.11 | According to the long-term loan mortgage contract signed by Dongguan |
Logistics, a subsidiary of the Company, with Dongguan Branch of CMB, Dongguan Logistics has mortgaged the real estate property rights of the structures of Yue (2016) Dongguan Property Right No. 0028527 at No. 10, Jingang South Road, Machong Town, Dongguan City to Dongguan Branch of CMB. | ||
Total | 621,791,339.05 |
VII. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (RMB) | Investment in the same period of last year (RMB) | Changes (+,-) |
540,741,002.73 | 548,035,686.02 | -1.33% |
2.The major equity investment obtained in the reporting period
√ Applicable □ Not applicable
Unit: RMB/CNY
Invested company | Main business | Form of investment | Investment amount | Shareholding ratio | Capital source | Partner | Time horizon | Type | Progress as of the balance sheet date | Anticipated income | Investment gains/losses in the Period | With lawsuit involved (Y/N) | Disclosure date (if any) | Disclosure index (if any) |
Dongguan Shenliang Logistics Co., Ltd. | Professional bulk cargo terminal handling and warehouse storage, | Acquisition | 321,680,000.00 | 49.00% | Owned fund | - | - | - | Completed | 13,319,542.33 | 17,767,334.23 | N | 2021-06-02 | “Acquisition of the 49% equity of Dongguan Shenliang Logistics Co., |
custodial services, grain and oil processing and quality testing services of grain and oil feeds, agency services of import & export customs declaration and inspection of goods | Ltd.” released on Juchao Website (www.cninfo.com.cn) | |||||||||||||
Total | -- | -- | 321,680,000.00 | -- | -- | -- | -- | -- | -- | 13,319,542.33 | 17,767,334.23 | -- | -- | -- |
3.The major non-equity investment carrying in the reporting period
√ Applicable □ Not applicable
Unit: RMB/CNY
Item | Investment method | Whether it is the fixed assets investment (Y/N) | Industry with the investment involved | Amount input in the period | Accumulated actual input as of the end of reporting period | Capital sources | Progress | Expected earnings | Income accumulated at end of the reporting period | Reasons for failure to achieve planned progress and expected benefits | Date of disclosure (if any) | Disclosure index (if any) |
Logistic node project phase II and silo and wharf of Shenliang | Self-build | Y | Storage and wharf | 135,423,900.00 | 1,093,968,869.78 | Owned Funds and Bank Loans | 114.00% | - | - | - | - | |
Total | -- | -- | -- | 135,423,900.00 | 1,093,968,869.78 | -- | -- | - | - | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
√ Applicable □ Not applicable
Unit: RMB/CNY
Variety of securities | Code of securities | Short form of securities | Initial investment cost | Accounting measurement | Book value at the beginning | Changes in fair value of the | Cumulative fair value chang | Current purchase amou | Current sales amount | Profit and loss in the Repor | Book value at the end of the | Accounting subject | Capital Source |
model | of the period | current profit and loss | es in equity | nt | ting Period | period | |||||||
Domestic and overseas stock | 000017 | Zhonghua-A | 0.00 | Fair value measurements | 621,806.51 | 299,292.76 | 0.00 | 0.00 | 0.00 | 299,292.76 | 921,099.27 | Tradable financial assets | Debt rescheduled shares |
Total | 0.00 | -- | 621,806.51 | 299,292.76 | 0.00 | 0.00 | 0.00 | 299,292.76 | 921,099.27 | -- | -- | ||
Disclosure date of securities investment approval of the Board | Not applicable | ||||||||||||
Disclosure date of securities investment approval of the Shareholder Meeting (if applicable) | Not applicable |
(2) Derivative investment
□ Applicable√Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable√Not applicable
The Company has no application of raised proceeds in the PeriodVIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding Company and stock-jointly companies
√ Applicable□Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
Shenzhen Cereals Group Co., Ltd | Subsidiary | Grain & oil trading processing,Grain and oil reserve service | 1,530,000,000 | 7,365,242,196.48 | 4,006,119,280.75 | 9,756,777,378.23 | 434,450,834.27 | 367,030,302.12 |
Shenzhen Hualian Grain and Oil Trading Co., Ltd. | Subsidiary | Grain & oil trading | 100,000,000 | 1,289,084,314.66 | 368,584,390.44 | 3,580,112,450.41 | 130,526,313.95 | 110,078,813.92 |
Shenzhen Flour Co., Ltd | Subsidiary | Grain & oil trading and processing | 30,000,000 | 1,285,878,993.29 | 113,921,074.41 | 2,665,817,210.11 | 62,111,962.87 | 50,522,787.38 |
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
Company name | The way of getting and treating subsidiary in the reporting | Influence on overall product and performance |
Heilongjiang Hongxinglong Nongken Shenxin Cereals Industrial Park Co., ltd | Cancellation | |
Shenzhen Shenbao Property Management Co., Ltd | Cancellation | |
Dongguan Shenliang Hualian Grain & Oil Trading Co., Ltd. | Newly established | 12,120.68 yuan |
Wuhan Jiacheng Biotechnology Co., Ltd | Acquisition | 2,854,540.09 yuan |
Explanation on main holding/stock-jointly enterprise:
Shenzhen Cereals Group Co., Ltd: Business scope: general business items: grain and oil purchase and sales, grain and oil storage;grain and oil and products management and processing (operated by branches); operation and processing of feed (operated byoutsourcing); investment in grain and oil, feed logistics projects; establishing grain and oil and feed trading market (includinge-commerce market) (market license is also available); storage (operated by branches); development, operation and management of
free property; providing management services for hotels; investing and setting up industries (specific projects are separately declared);domestic trade; engaging in import and export business; E-commerce and information construction; and grain circulation service.Licensed business items: the following projects shall be operated only with the relevant examination and approval documents if theyare involved in obtaining approval: information services (internet information service only); general freight, professional transport(refrigerated preservation). Register capital was 1,530,000,000.00 Yuan. Ended as this period, total assets amounted as7,365,242,196.48 Yuan, and net assets amounting to 4,006,119,280.75 Yuan, shareholders’ equity attributable to parent Company is3,795,605,773.34 Yuan; in the reporting period, achieved operation revenue, net profit and net profit attributable to shareholder ofparent Company as 9,756,777,378.2 Yuan, 367,030,302.12 Yuan and 344,364,720.75 Yuan respectively.
Shenzhen Hualian Grain and Oil Trading Co., Ltd.: Business scope: general business items: domestic trade (except for projects thatlaws, administrative regulations, and decisions of the State Council require approval before registration); engaging in import andexport business (except for projects prohibited by laws, administrative regulations, and decision of the State Council, restrictedprojects can be operated only after obtaining permission); online feed sales; information consultation, self-owned housing leasing(excluding talent agency services and other restricted items); international freight forwarding, domestic freight forwarding (can onlybe operated after being approved by the transport department if laws, administrative regulations, State Council decision require theapproval of transport department); Licensed business items: following items shall be operated only with the relevant examination andapproval documents if they are involved in obtaining approval: purchase and sale of grain and oil, online sales of grain and oil;information service business (internet information service business only). Register capital was 100,000,000.00 Yuan. Ended as thisperiod, total assets amounted as 1,289,084,314.66 Yuan, and net assets amounting to 368,584,390.44 Yuan, shareholders’ equityattributable to parent Company is 340,887,703.77 Yuan;in the reporting period, achieved operation revenue, net profit and net profitattributable to parent Company as 3,580,112,450.41 Yuan, 110,078,813.92 Yuan and 106,590,189.18 Yuan respectively.
Shenzhen Flour Co., Ltd: Business scope: general business items: hardware and electrical equipment, chemical products (excludinghazardous chemicals and restricted items), auto parts, purchase and sales of construction materials; self-operated import and exportbusiness (carry out according to the provisions of the registration certificate SMGDZZ No. 76); domestic trade (excluding franchise,exclusive control, monopoly commodities); wheat wholesale and retail. Licensed business items: following items shall be operatedonly with the relevant examination and approval documents if they are involved in obtaining approval: flour processing andproduction. Register capital was 30,000,000.00 Yuan. Ended as this period, total assets amounted as 1,285,878,993.29 Yuan, and netassets amounting to 113,921,074.41 Yuan, shareholders’ equity attributable to parent Company is 113,921,074.41 Yuan; in thereporting period, achieved operation revenue, net profit and net profit attributable to parent Company as 2,665,817,210.11 Yuan,50,522,787.38 Yuan and 50,522,787.38 Yuan respectively.
X. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Prospects on future development
(i) Development trend and competition layout of the industryAt present, the domestic grain and oil trade, processing, and logistics industries are full-circulation sectors, withhigh degree of marketization, numerous participating companies and fierce competition. Central enterprises andlarge local grain enterprises have relatively complete warehousing and logistics facilities, and enjoy a number ofnational policies; in recent years, a large number of outstanding national and regional private grain enterprises
have come to the fore; with the development of China’s grain marketization, foreign grain enterprises haveemerged in our country's grain market, and further intensified the competition in the grain and oil industry byrelying on abundant resources, strong financial strength and mature management experience. The grain industry inShenzhen is developing vigorously, there are many grain and oil processing enterprises with a certain scale andmany small and medium-sized enterprises in the area, with the advancement of the "dual-zone construction", thepopulation of cities in the Pearl River Delta has increased, and people's living standards have improved, thecompetition in the food market is orderly and unprecedentedly fierce.
(ii) The company’s development strategyDuring the 14
thFive-Year Plan, the Company will focus on the main business of grain, oil and food, conform tothe country’s new development requirements for the grain industry, i.e. “agriculture head and industry tail”, “grainhead and food tail”, “three chains integration”, etc., seize the major historical opportunities of current significanthistorical opportunities such as the construction of the Guangdong - Hong Kong - Macao Greater Bay Area andthe construction of the Shenzhen Pilot Demonstration Area, and innovate the development strategy of “one chain,two parks and N platforms”, to build a regional leading “grain eastern and southern coastal logistic corridor” with“high-quality grain source base + regional comprehensive park + urban distribution center” and create a nationalfirst-class “smart grain, oil and food supply chain quality service providers”.
(iii) Operation plan for year of 20222022 is the key period of the “14
thFive-Year Plan”, and is also the final year of the “Double Hundred Action” andthe Shenzhen regional comprehensive reform pilot. The company will thoroughly study and implement the spiritof the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China and the clear tone ofthe Central Economic Work Conference on economic work in 2022, stabilize the fundamentals, highlight thestrengths, firmly grasp the initiative of food security, and make progress while maintaining stability, adhere tohigh-quality development and strive to achieve business goals. Focus on the following tasks:
1. Focus on reform and innovation, and consolidate the support of modern governance capabilitiesFirmly grasp the strategic positioning and historical mission of state-owned enterprises in the new era, carry outthe double-hundred action, three-year action and benchmarking world-class management improvement action forthe reform of state-owned enterprises, and strengthen strategic management, organizational management,operational management, financial management, science and technology management, risk management, humanresources management, and information management, and form a modern governance system with completesystems, scientific norms, and efficient operation.
2. Focus on key projects and make breakthroughs to drive all-round developmentContinue to research, develop and promote investment projects and optimize business layout. The first is to focuson exploring projects with high potential, new trends and strong synergy, and make good project reserves to lay asolid foundation for the extension of the industrial chain and subsequent investment work. The second is toexplore new projects in grain source production areas and logistics node industrial parks, and plan the company’s
national layout. The third is to seize the opportunity of dual-zone construction and revitalize the stock land.
3. Focus on brand building, empower operations to improve quality and efficiencyFirmly promote the development of branding, continuously improve the excellent brand matrix, constantlyimprove the quality and scale of food supply, strengthen the core competitiveness, innovation strength and outputcapabilities of the brand, serve the people with more high-quality grain and oil products with preferential prices,and lead the demonstration in grain, oil and food to create a benchmark for people’s well-being.
4. Focus on party building supervision and provide strong political and disciplinary guaranteesThe first is to thoroughly study and implement General Secretary Xi Jinping’s important expositions on partybuilding in state-owned enterprises, continuously strengthen and improve party leadership, and strengthen andimprove party building. The second is to effectively integrate supervision into the corporate governance system,the Party should supervise its own conduct and strengthen the self-discipline, fulfill its duties with high quality,urge and promote the high-quality development of enterprises.
5. Focus on regional grain security, strengthen and standardize grain and oil managementConscientiously implement the overall national security concept and the national food security strategy, focus onkey points, make up for shortcomings, strengthen weak points, prevent risks, stabilize market, and ensure safety,and accelerate the construction of higher-level, higher-quality, more efficient, and more sustainable food securitysystem.
6. Focus on risk prevention and control, and guard the bottom line and red line of safetyFormulate and improve risk prevention and control plans, comprehensively sort out and find out potential risks,put forward preventive measures, and ensure the smooth progress of production, operation, and reform anddevelopment of the enterprise.
(iv) Possible risks
1. The risk of the impact of the COVID-19 epidemic
The global spread of the COVID-19 epidemic has affected macroeconomic operations to varying degrees. Theepidemic making the economy unpredictable and uncertain, which may affect the company's production, trade,and industrial supply chain. The epidemic has caused increases in various costs such as raw material costs, laborcosts, and logistics costs. In response to this risk, the company will unswervingly do a good job of epidemicprevention and strictly implement various epidemic prevention measures to ensure the orderly production andoperation of the company.
2. Food safety risk
On the one hand, our country is paying more and more attention to food safety and strengthening the supervision.On the other hand, consumers’ awareness of food safety and rights protection is also increasing. Food safety hasbecome the industry’s number one risk, especially after the COVID-19 epidemic, consumers' attention to foodsafety and cleanliness is rapidly increasing in the short term, and put forward higher requirements for foodhygiene and safety.
The company has always regarded food quality and safety as the most important core work. The first is to strictlyimplement laws and regulations related to national food safety, and assume the social responsibility of supplyinghigh-quality and safe food to the market. The second is to strengthen the quality of raw materials and strengthenquality control from the source. The third is to strengthen production management, standardize productionoperations, and implement quality responsibilities. The fourth is to strengthen staff's operating skills and safetyawareness training to prevent product quality accidents caused by non-standard operations or weak food safetyawareness. The fifth is to continuously improve product quality assurance level through technologicaltransformation and technological progress. The sixth is to strengthen product transportation and storagemanagement to prevent secondary pollution of products.
3. Raw material fluctuation risk
On the one hand, with the implementation of the quantitative easing policy of the US dollar and major currenciesin the world, the speculative nature and hedging preferences of capital will cause social funds to flow into the bulkcommodity sector, which will lead to violent fluctuations in domestic and foreign bulk commodity prices. On theother hand, with the outbreak of the COVID-19 epidemic, most countries' controls on the export of agriculturalproducts will have a major impact on prices; at the same time, the epidemic will also affect the normal operationof the supply chain in various regions and have a direct impact on the supply of bulk agricultural and sidelineproducts.
The company will actively respond to the risk of adverse effects of price fluctuations on the company's operationsthrough measures such as strengthening market forecasts, establishing strategic cooperation, optimizing supplymanagement, and using refined management to improve utilization.
4. Risk of intensified market competition
As a representative enterprise of regional grain, oil and food business, compared with central enterprises and largemultinational grain, oil and food enterprises, the company still has a certain gap in scale and brand awareness. Inthe future, the competition in the grain, oil and food industry will become more intense, if the company cannoteffectively promote its own brand and broaden its marketing channels, it may face greater risks when marketcompetition intensifies.
In response to possible market and business risks, on the one hand, the company makes overall plans for the year'sprocurement, carefully optimizes procurement channels, and ensures sufficient grain supply and orderly supply.On the other hand, the company continues to strengthen communication with upstream and downstreamcustomers in the industry chain, vigorously expands sales channels, focuses on customer needs, deepens brand andservice, and enhances the company's brand value and competitiveness.
5. M&A integration risks
The company carries out investment and M&A projects in accordance with its development strategy. Whether theM&A project can form synergy with the original business and whether the integration of corporate culture andmanagement methods is in place during the critical period of integration of mergers and acquisitions are the key tothe realization of the company’s strategic goals. Inadequate management and control can easily lead to merger andacquisition risks.
The company will take the following measures to prevent risks, the first is to pay attention to the operation of themerged company and the integrating degree with the company's development strategy, and correct deviations in atimely manner; the second is to pay attention to the synergy between the merged company and the company'sexisting industry, and coordinate the deployment of resources in a timely manner; the third is to gradually realizethe integration of systems and cultures; the fourth is to increase performance improvement and innovationincentives and assessments for mergers and acquisitions, and continuously adjust incentive policies that arecompatible with operations.XII. Reception of research, communication and interview during the reporting period
□ Applicable √ Not applicable
There were no research reception, communication and interview activities occurred in the period
Section IV Corporate GovernanceI. Corporate governance of the Company
During the reporting period, the Company constantly improved the corporate governance structure, improved thequality of corporate governance, and established a sound internal control system, strictly in accordance withcorporate governance requirements of normative documents released by the “Company Law“,”Securities Law,Corporate Governance Guidelines“and”Standardize Operational Guidelines to Main Board Listed Companies ofShenzhen Stock Exchange. The Company continued to carry out the governance activities, improved the standardoperation level, and safeguarded the legitimate interests of the Company and investors.
Accountability among Shareholders’ General Meeting, the Board of Directors and Supervisors were clear, westrictly implemented the rules from the "Articles of Association" during the reporting period as well as workregulations and other basic management system to ensure the effective implementation of the internal controlsystem.
The Company received no relevant documents with administrative regulation concerned from supervisiondepartment in reporting period, and has no particular about rectification within a time limit. From point of theBoard, corporate governance of the Company shows no difference to requirement from relevant documents withactual condition.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted Company from CSRC?
□ Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed Company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controllerin ensuring the Company’s assets, personnel, finance, organization and businessesBy the end of the reporting period, Food Materials Group is the actual controller of the Company. The Company,in strict accordance with the governance rules of listed corporate and other relevant provisions, completelyseparates from the controlling shareholders in business, finance, personnel, assets, organizations, and hasindependent full business and self management ability.
1. Independent Business:
The business of the Company is independent from controlling shareholders and has complete business and self
management ability, not depends on the shareholders and their affiliated enterprises, which has no competitionwith controlling shareholder and its subordinate enterprises. The controlling shareholder has no direct or indirectintervention in the Company business activities.
2. Independent Staff:
The Company has special organization to manage labor and payment, and has independent perfect personnelsystem and collective management system. General Manager of the Company as well s deputy GM, secretary ofthe Board, CFO and other senior executives are received remuneration from the Company, and are not receivedremuneration from shareholders’ unit and subordinate enterprises and holding the post except director orsupervisor.
3. Independent Assets:
The Company has independent and integrity asset structure; there is no controlling shareholder's non businessoccupation of money and the property.
4. Independent Organization:
The Company has set up a sound organizational structure system and operates independently; there is no mixedoperation between the Company and controlling shareholders.
5. Financial Independent:
The Company, with independent financial department, has set up independent accounting system and financialmanagement system and makes financial decision independently. With independent bank accounts, tax payment,the Company strictly follows the financial system and has independent operation and standardized management.
III. Horizontal Competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual general meeting and extraordinaryshareholders’ general meeting
1. Annual General Meeting in the report period
Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Resolutions |
Annual General Meeting of 2020 | AGM | 72.03% | 2021-05-18 | 2021-05-19 | Disclosed at www.cninfo.com.cn on No. 2021-14" resolutions of the |
Annual General Meeting of 2020 " dated 19 May 2021 | |||||
First extraordinary general meeting of 2021 | Extraordinary general meeting | 72.03% | 2021-08-02 | 2021-08-03 | Disclosed at www.cninfo.com.cn on No. 2021-24" resolutions of the First extraordinary general meeting of 2021" dated 3 August 2021 |
Second extraordinary general meeting of 2021 | Extraordinary general meeting | 72.07% | 2021-12-14 | 2021-12-15 | Disclosed at www.cninfo.com.cn on No. 2021-30" resolutions of the Second extraordinary general meeting of 2021" dated 15 December 2021 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Other changes (share) | Shares held at period-end (share) | Reasons for increase or decrease of shares |
Zhu Junming | Party Secretary, Chairman | Currently in office | Male | 57 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Hu Xianghai | Deputy Party Secretary, Director, GM | Currently in office | Male | 57 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Lu Qiguang | Deputy Party Secretary, Director | Currently in office | Male | 59 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Lu Yuhe | Director, CFO | Currently in office | Female | 44 | 2021-08-02 | 2022-02-21 | 0 | 0 | 0 | 0 | - | |
Zhao Rubing | Independent director | Currently in office | Male | 65 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Bi Weimin | Independent director | Currently in office | Female | 65 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Liu Haifeng | Independent director | Currently in office | Male | 50 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Wang Li | Director | Currently in office | Male | 60 | 2018-05-15 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Ni Yue | Director | Currently in office | Female | 47 | 2018-05-15 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Wang Huimin | Secretary of Discipline Committee, Chairma | Currently in office | Female | 54 | 2018-05-15 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
n of supervisory committee | ||||||||||||
Liu Ji | Supervisor | Currently in office | Male | 46 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Qian Wenying | Supervisor | Currently in office | Female | 49 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Zheng Shengqiao | Staff supervisor | Currently in office | Male | 54 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Ma Zenghai | Staff supervisor | Currently in office | Male | 57 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Chen Xiaohua | Deputy GM, Secretary of the Board | Currently in office | Male | 55 | 2020-08-24 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Xiao Hui | Deputy GM | Currently in office | Male | 43 | 2020-02-28 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Dai Bin | Deputy GM | Currently in office | Male | 57 | 2019-02-21 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
Meng Xiaoxian | Deputy GM | Currently | Male | 49 | 2019-09-11 | 2022-02-21 | 0 | 0 | 0 | 0 | 0 | - |
in office | ||||||||||||
Jin Zhenyuan | Former Director, CFO | Office-leaving | Female | 50 | 2019-02-21 | 2021-07-16 | 0 | 0 | 0 | 0 | 0 | - |
Total | -- | -- | -- | -- | -- | -- | 0 | 0 | 0 | 0 | 0 | -- |
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior Officers
√ Yes □ No
On July 16, 2021, the BOD of the Company received a written resignation report submitted by Director and CFO of the CompanyMs. Jin Zhenyuan. Due to the wok transfer, Ms. Jin Zhenyuan applied for resignation from the Director and CFO of the Company.Changes of directors, supervisors and senior officers
√ Applicable □ Not applicable
Name | Title | Type | Date | Reason |
Lu Yuhe | Director, CFO | Appointment | 2021-08-02 | Appointed by the general meeting of shareholders |
Jin Zhenyuan | Former Director, CFO | Office-leaving | 2021-07-16 | Work transfer |
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,supervisors and senior executive(i) Director
Mr. Zhu Junming: was born in 1964, master’s degree and a senior economist. He successively served as cadet andcadre of Air Force Radar Institute; cadres of organs directly under Hubei Province; GM and President of theenterprise under Shenzhen Agricultural Products Group Co., Ltd; the Director, assistant GM, deputy GM, GM anddeputy party secretary of Agricultural Products; Party Secretary and Chairman of Shenzhen Cereals Group Co.,Ltd; executive director and GM of Shenzhen Fude State Capital Operation Co., Ltd. Now he serves as PartySecretary and Chairman of the Company.
Mr. Hu Xianghai: was born in 1964, master’s degree and a senior economist. He successively served as thelecturer of Shenzhen Institute of Education; director of general office of Asia Branch of the Shenzhen HualeIndustrial Co., Ltd.; director of the Shenzhen Enterprise Management Cadre Training Center; deputy secretarygeneral and office director of the Secretarial Shenzhen Association of Enterprise Management and ShenzhenAssociation of Chinese and Foreign Entrepreneurs; director of development dept. and director of the marketingmanagement dept. of Shenzhen Special Economic Zone Duty-Free Commodity Enterprise Company; GM ofTemian Electronic Technology Professional Market Management Co., Ltd.; assistant to the GM and GM of
enterprise dept., GM, deputy secretary of the party committee, director and GM of Shenzhen AgriculturalProducts Co., Ltd; served as the president of Shenzhen South Agricultural Products Logistics Co., Ltd. while takepost as assistant to the deputy GM, and the president of Shenzhen Qianhai Agricultural Products Exchange Co.,Ltd; deputy secretary of the party committee, director and GM of Shenzhen Cereals Group Co., Ltd. Now heserves as deputy secretary of the party committee, director and GM of the Company.
Mr. Lu Qiguang: born in 1962, a university graduate, an assistant economist. He successively served as the clerkand deputy chief of the Grain Bureau of Boluo County; an office staff and deputy director of Shenzhen Grain Co.,Ltd.; the deputy director of office, assistant GM and deputy GM of Shenzhen Cereals Corporation; a member ofthe party committee, deputy GM, deputy party secretary and director of Shenzhen Cereals Group Co., Ltd, and thepresident of Shenzhen Flour Co., Ltd. Now he serves as the deputy secretary of the party committee and directorof the Company.
Ms. Lu Yehe: born in 1977, master’s degree and CPA.She previously worked as the senior auditor of Ernst &Young; the independent non-executive director, Director and CFO of China Trends Holdings Limited; CFO ofVIEIN; Director and CFO of the Shenzhen Exhibition & Convention Center Management Co., Ltd., the Directorand CFO of Shenzhen Tong Chan Group and CFO of Shenzhen Yinhu Convention Center (Hotel) Co., Ltd. Nowshe is the Director and CFO of the Company.
Mr. Wang Li: born in 1961, master’s degree and an accountant. He successively served as assistant workers inChengdu Locomotive Factory; assistant workers in Xi’an Railway Branch; business manager, vice director of thefinancial department, director of capital division, deputy chief accountant, deputy GM, Director, deputy partysecretary and GM of Shenzhen SEG Group Co., Ltd.; director of Shenzhen Cereals Group Co., Ltd. now he servesas Director of the Company and Director of Shenzhen Agricultural Products Group Co., Ltd.
Ms. Ni Yue: born in 1974, a master’s degree and a senior accountant. She successively served as general ledgeraccountant in Shanghai Jingan Commercial & Trade Corporation; chief accounting in Shanghai Tailong RealEstate Co., Ltd.; finance officer in Shanghai Baodi Property Co., Ltd; chief accountant in Shanghai Ruian RealEstate Co., Ltd and full-time supervisor in the enterprise directly under SASAC of Shanghai Pudong New District;Director of Shenzhen Cereals Group Co., Ltd and Shenzhen Bus Group Co., Ltd. Now she serves as Director ofthe Company, Director of Shenzhen Food Materials Group Co., Ltd and Shenzhen Special Zone ConstructionDevelopment Group Co., Ltd.
Mr. Zhao Rubin: born in 1956, a master’s degree and professor of engineering. He successively served as thedirector and secretary of Gezhouba Station for EHVDC transmission from Gezhouba to Shanghai; director ofoffice and director of foreign affairs office of Gezhouba Hydro-power Plant; the secretary of party group and GMof Huaneng South Development Company; party secretary and GM of Huaneng Real Estate Development
Company; Director, deputy president, deputy party secretary of Great Wall Securities; president of Jingshun GreatWall Fund Management Co., Ltd.; deputy president of Sunshine Insurance Assets Management CorporationLimited; the outside director of Shenzhen Cereals Group Co., Ltd; independent director of Bros Eastern Co., Ltd.Now he serves as independent director of the Company; independent director of Southwest Securities Co., Ltd andDirector of Bosera Fund Management Co., Ltd.
Ms. Bi Weimin: born in 1956, a doctoral candidate, and a senior accountant. She successively served as engineerof the Gezhouba Power Plant, assistant director and deputy director; deputy president and director of ThreeGorges Finance Company; chief economist and supervisor of China Yangtze Power Co., Ltd.; deputy chiefaccountant of China Three Gorges Corporation, the member of investment committee and director of asset financedept. As well as the director of enterprise management dept and legal affairs department. Now she serves asindependent director of the Company.
Mr. Liu Haifeng: born in 1971, a doctoral student and a lawyer. He successively served as director of legaldepartment of Shenzhen Property Development (Group); the partner of Guangdong Xintong Laws Firm. Now heserves as independent director of the Company and first-level partner of Guangdong Hancheng Laws Firm.
(ii) SupervisorMs. Wang Huimin: born in 1967, a master’s degree and a intermediate economist, senior HR manager and has alawyer’s qualification. She successively served as a legal adviser for Shenzhen Construction Group Co., Ltd, aneconomist, chairman of the committee of female employees, manager of HR department in ShenzhenConstruction Investment Holding Co., Ltd; director of HR department of Shenzhen Investment Holdings Co., Ltd;Deputy GM of SZPRD; Director, Deputy party secretary, Secretary of Discipline Committee and Chairman ofsupervisory committee of Shenzhen Cereals Group Co., Ltd. Now she serves as Secretary of DisciplineCommittee and Chairman of supervisory committee of the Company.
Mr. Liu Ji: born in 1975, master’s degree and a economist. He successively served as secretary of executive Boardcommittee, GM of IT Engineering departmnet, GM of administrative department, GM of enterprise managementdepartment and GM of investment department of Shenzhen International Holdings Limited; non executivedirector of Shenzhen Expressway Co., ltd.; the supervisor of Shenzhen Cereals Group Co., Ltd. Now he is thesupervisor of the Company; the executive director, deputy GM and secretary of the Board of Shenzhen HoldingsBay Area Development Co., Ltd.; the mediation expert of Shenzhen International Arbitration Court (ShenzhenArbitration Commission).
Ms. Qian Wenying: born in 1972, holds a bachelor degree, a member of Association of Chartered CertifiedAccountants (ACCA), and a senior economist. She successively served as the office translator, secretary andresearcher of project investment office in Shenzhen Tagen Group Co., Ltd.; the assistant manager and manager of
marketing department of Tagen Investment Development Co., Ltd., the director of office of the board andrepresentative of security affairs of Shenzhen Tagen Group Co., Ltd; supervisor of Shenzhen Cereals Group Co.,Ltd. Now she serves as supervisor of the Company and director of policy research office of Shenzhen Metro.
Mr. Zheng Shengqiao, born in 1967, holds a bachelor degree and an intermediate accountant. He successivelyserved as member of the special representative office of the state audit administration in Guangzhou; deputymanager of accounting department of Hong Kong Yuehai Enterprise (Group) Co., Ltd; deputy GM of CTSLogistics; CFO of the AVSHD Technology Co., Ltd; the deputy director of finance department, deputy director ofenterprise management department, director of board office, deputy secretary of discipline inspection commission,secretary of the BOS and director of discipline inspection and supervision office (office of BOS) of the ShenzhenCereals Group Co., Ltd. Now he serves as the staff supervisor, deputy secretary of discipline inspectioncommission and director of discipline inspection and supervision office (office of BOS) of the Company.
Mr. Ma Zenghai: born in 1964, master’s degree and an intermediate economist, lecturer. He successively served asthe general representative of Thailand project in Shenzhen Cereals Group Co., Ltd; president and GM ofShenzhen Hualian Grain & Oil Trade Co., ltd.; GM and secretary of the Party branch of Grease branch ofShenzhen Cereals Group Co., Ltd; head of the risk management department of Shenzhen Cereals Group Co., Ltd.Now he serves as staff supervisor and head of the risk management and internal audit department of the company.
(iii) Senior executiveMr. Chen Xiaohua, born in 1966, holds a master's degree, is an economic manager. He served successively aschief of the secretarial section, deputy director and director of the office of the board of directors, and secretary ofthe board, director, and vice president of Shenzhen Agricultural Products Group Co., Ltd., concurrently served aschairman of Guangxi Haijixing International Logistics Co., Ltd., chairman of Tianjin Haijixing AgriculturalProducts Market Management Co., Ltd., and chairman of Tianjin Haijixing Agricultural Products Logistics Co.,Ltd. He currently serves as deputy general manager and secretary of the board of the company.
Mr. Xiao Hui, born in 1978, holds a master's degree, is a master of finance and a master of business administration.He served as a staff member of the Personnel and Education Department, and a staff member, a deputy chief staffmember, a chief staff member, deputy director, and director of the General Office of the People's Bank of China,;and the deputy head of the Nanshan District People's Government. He currently serves as deputy general managerof the company.
Mr. Dai Bin: born in 1964, master’s degree and a senior engineer. He successively served as counselor of RadioEngineering Department of Huazhong University of Technology and secretary of the Youth League Committee; anengineer and purchasing manager of Shenzhen Huada Electronic Co., Ltd; GM of Shenzhen Shengye VentureElectronics Co., Ltd; GM of Shenzhen Zhongnong E-commerce Co., Ltd; director of information, director and
deputy GM of e-commerce center and executive director of Shenzhen Shenliang Doximi Business Co., Ltd. Nowhe serves as the deputy GM of the Company.
Mr. Meng Xiaoxian: born in 1972, master’s degree. He successively served as cadres of Shenzhen Youth LeagueSchool; member of the learning department of Shenzhen Municipal Committee of Communist Youth League,deputy director section of liaison department, director section of liaison department, director section of office,deputy director of organization and publicity department, director of office, director of community and rightsdepartment; deputy director of Pingshan New Area Public Utilities Bureau and director of Planning and LandSupervision Bureau of Shenzhen; deputy secretary of Pingshan Working Committee and director of PingshanOffice, Pingshan New District, Shenzhen; secretary of Malian Working Committee and director of Malian Office,Pingshan New District, Shenzhen; secretary of the working committee of Malian Sub-district, Pingshan District,Shenzhen, director and secretary of the working committee of Malian sub-district office of Communist Party ofCHina. Now he serves as deputy GM of the Company.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Name | Name of shareholder’s units | Position | Start dated of office term | End date of office term | Weather receiving remuneration from shareholder’s units |
Wang Li | Shenzhen Agricultural Products Group Co., Ltd | Director | 2018-09-17 | 2022-01-12 | Y |
Ni Yue | Shenzhen Food Materials Group Co., Ltd | Director | 2021-11-04 | Y | |
Explanation on post-holding in shareholder’s unit | N/A |
Post-holding in other unit
√ Applicable □ Not applicable
Name | Name of other units | Position | Start dated of office term | End date of office term | Weather receiving remuneration from other units |
Ni Yue | Shenzhen Bus Group Co., Ltd. | Director | 2017-08-01 | 2021-11-04 | Y |
Ni Yue | Shenzhen Special Zone Construction Development Group Co., Ltd. | Director | 2021-11-04 | N | |
Zhao Rubing | Bosera Fund Management Co., Ltd. | Director | 2017-12-01 | N | |
Zhao Rubing | Southwest Securities Co., Ltd | Independent director | 2017-03-01 | Y | |
Zhao Rubing | Bros Eastern Co., Ltd. | Independent director | 2015-05-01 | 2021-05-28 | Y |
Liu Haifeng | Guangdong Hancheng Laws Firm | First-level partner | 2007-02-01 | Y | |
Liu Ji | Shenzhen Holdings Bay Area Development Co., Ltd | Executive director, Deputy GM and Secretary of the Board | 2018-04-01 | Y | |
Qian Wenying | Shenzhen Metro | Director of Policy Research Office | 2018-02-01 | Y |
Punishment of securities regulatory authority in recent three years to the Company’s current and outgoing directors, supervisors andsenior management during the reporting period
□ Applicable √ Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedures, determination bases and actual payment of remunerations of directors, supervisors and seniormanagementDuring the reporting period, according to the Company Performance Management Measures, the Company's board meetingremuneration and appraisal committee combined with the Company's annual business situation and individual performance appraisalresult and determined the senior management personnel salary. During the reporting period, the subsidiary standard of independentdirectors is subject to the resolution by the 2019 Fifth Extraordinary General Meeting and adjusted as 138,000 yuan (tax included)per year for one person.
Remuneration for directors, supervisors and senior executives in reporting period
Unit: 10 thousand Yuan
Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company | Whether remuneration obtained from related party of the Company |
Zhu Junming | Party Secretary, Chairman | Male | 57 | Currently in office | 120.12 | N |
Hu Xianghai | Deputy Party Secretary, Director, GM | Male | 57 | Currently in office | 137.35 | N |
Lu Qiguang | Deputy Party Secretary, Director | Male | 59 | Currently in office | 123.55 | N |
Lu Yuhe | Director, CFO | Female | 44 | Currently in office | 27.08 | Y |
Zhao Rubing | Independent director | Male | 65 | Currently in office | 13.8 | N |
Bi Weimin | Independent director | Female | 65 | Currently in office | 13.8 | N |
Liu Haifeng | Independent director | Male | 50 | Currently in office | 13.8 | N |
Wang Li | Director | Male | 60 | Currently in office | 15.3 | Y |
Ni Yue | Director | Female | 47 | Currently in office | 15.3 | Y |
Wang Huimin | Secretary of Discipline Committee, Chairman of supervisory committee | Female | 54 | Currently in office | 50.3 | Y |
Liu Ji | Supervisor | Male | 46 | Currently in office | 0 | N |
Qian Wenying | Supervisor | Female | 49 | Currently in office | 0 | N |
Zheng Shengqiao | Staff supervisor | Male | 54 | Currently in office | 119.92 | N |
Ma Zenghai | Staff supervisor | Male | 57 | Currently in office | 107.57 | N |
Chen Xiaohua | Deputy GM, Secretary of the Board | Male | 55 | Currently in office | 88.5 | N |
Xiao Hui | Deputy GM | Male | 43 | Currently in office | 116.65 | N |
Dai Bin | Deputy GM | Male | 57 | Currently in office | 125.11 | N |
Meng Xiaoxian | Deputy GM | Male | 49 | Currently in office | 120.93 | N |
Jin Zhenyuan | Former Director, CFO | Female | 50 | Office-leaving | 23.22 | Y |
Total | -- | -- | -- | -- | 1,232.3 | -- |
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
The 13th Session of 10th BOD | 2021-02-03 | 2021-02-04 | The “Resolution of The 13th Session of 10th BOD” (Notice No.: 2021-01) released on Juchao Website (www.cninfo.com.cn)dated February 4, 2021 |
The 14th Session of 10th BOD | 2021-04-23 | 2021-04-27 | The “Resolution of The 14th Session of 10th BOD” (Notice No.: 2021-07) released on Juchao Website (www.cninfo.com.cn)dated April 27, 2021 |
The 15th Session of 10th BOD | 2021-06-01 | 2021-06-02 | The “Resolution of The 15th Session of 10th BOD” (Notice No.: 2021-15) released on Juchao Website (www.cninfo.com.cn)dated June 2, 2021 |
The 16th Session of 10th BOD | 2021-07-16 | 2021-07-17 |
The “Resolution of The 16
th Session of 10
th
BOD” (Notice No.: 2021-19) released onJuchao Website (www.cninfo.com.cn)datedJuly 17, 2021
The 17th Session of 10th BOD | 2021-08-24 | 2021-08-26 | The “Resolution of The 17th Session of 10th BOD” (Notice No.: 2021-25) released on Juchao Website (www.cninfo.com.cn)dated August 26, 2021 |
The 18th Session of 10th BOD | 2021-10-26 | 2021-10-26 | The “Resolution of The 18th Session of 10th BOD” |
The 19th Session of 10th BOD | 2021-11-25 | 2021-11-26 | The “Resolution of The 19th Session of 10th BOD” (Notice No.: 2021-28) released on Juchao Website (www.cninfo.com.cn)dated November 26, 2021 |
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting and Shareholders General Meeting | |||||||
Director | Times of Board meeting supposed to attend in the report period | Times of Presence | Times of attending the Board Meeting by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attend the general meeting |
Zhu Junming | 7 | 4 | 2 | 1 | 0 | N | 2 |
Hu Xianghai | 7 | 5 | 0 | 2 | 0 | N | 2 |
Lu Qiguang | 7 | 7 | 0 | 0 | 0 | N | 3 |
Jin Zhenyuan | 3 | 3 | 0 | 0 | 0 | N | 1 |
Lu Yuhe | 3 | 3 | 0 | 0 | 0 | N | 1 |
Zhao Rubing | 7 | 5 | 2 | 0 | 0 | N | 2 |
Bi Weimin | 7 | 2 | 5 | 0 | 0 | N | 3 |
Liu Haifeng | 7 | 6 | 1 | 0 | 0 | N | 3 |
Wang Li | 7 | 7 | 0 | 0 | 0 | N | 3 |
Ni Yue | 7 | 7 | 0 | 0 | 0 | N | 3 |
Explanation of absent the Board Meeting for the second time in a rowNil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes √ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
√ Yes □ No
Director's statement to the Company that a proposal has been or has not been adoptedDuring the reporting period, independent directors of the Company was in strict accordance with relevant lawsfrom the "Articles of Association", the "Company Law", "Guidance to Establishment of Independent DirectorSystem in Listed Companies ", and actively attended board meetings, shareholders' meetings. We issuedindependent professional opinion for important issues. And we sustained attention to the operating, inspected andguided the management work from time to time, learned about internal control system, implementation progressof the equity investment project, etc., and continue to enhance consciousness of performing duties according tolaw, express independent and impartial advice for investment outside, related party transactions, hiring auditorsand other matters occurred during the reporting period in time. Duties performance of independent directors hasimproved the corporate governance structure and safeguarded the interests of the Company and its shareholders.From performance of duties of Independent Directors please note from “2021 Annual Work Report of IndependentDirectors” detailed in www.cninfo.com.cn on disclosure.
VII. Performance of Duties by Specialized Committees under the Board Meeting in theReporting Period
Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
Audit Committee of the Board | Bi Weimin,Zhao Rubing, Jin Zhenyuan | 4 | 2021-04-23 | Deliberated the follow proposals and reports as Internal Control Evaluation Report of 2020, Work Report of the Internal Control System of 2020; Summary Report on the Audit Works of BDO China Shu Lun Pan Certified Public Accountant LLP for 2020; Financial Report of 2020 and Financial Report of Q1 for 2021 | - | - | N/A |
2021-08-24 | Deliberated the Financial Report of Semi-Annual of 2021 | - | - | N/A | |||
2021-10-26 | Deliberated the Financial Report of Q3 for 2021 | - | - | N/A | |||
2021-11-25 | Deliberated the follow proposals and reports as Corporate Compliance Management Approach, Evaluation Management Method after the Investment and Authorization Management Method of the BOD | - | - | N/A | |||
Remuneration and Appraisal Committee of the | Zhao Rubing, Bi Weimin, | 2 | 2021-04-21 | Senior executive’s debriefing, questioning and review for year of 2020; and deliberated the Proposal on Remuneration of Directors | - | - | N/A |
Board | Ni Yue | and Senior Executives for year of 2020 | |||||
2021-07-16 | Deliberated the Proposal on Business Performance Responsibility Letter of the Senior Executives for year of 2021 | - | - | N/A | |||
Nomination Committee of the Board | Zhao Rubing, Zhu Junming, Bi Weimin , Liu Haifeng | 1 | 2021-07-16 | Deliberated the Proposal of Director Supplement | - | - | N/A |
Strategy Committee of the Board | Zhu Junming, Hu Xianghai, Zhao Rubing, Liu Haifeng | 3 | 2021-02-03 | Deliberated the Draft Comprehensive Budget for 2021 | - | - | N/A |
2021-06-01 | Deliberated the Proposal on Acquisition of 49% Equity of Dongguan Shenliang Logistics Co., Ltd. | - | - | N/A | |||
2021-11-25 | Deliberated the 14th Five-Year Plan | - | - | N/A |
VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company at period-end (people) | 129 |
Employee in-post of main Subsidiaries at period-end (people) | 1,149 |
The total number of current employees at period-end (people) | 1,278 |
The total number of current employees to receive pay (people) | 1,278 |
Retired employee’ s expenses borne by the parent Company | 1 |
and main Subsidiaries (people) | |
Professional composition | |
Category of professional composition | Numbers of professional composition (people) |
Production personnel | 485 |
Salesperson | 156 |
Technicians | 113 |
Financial personnel | 116 |
Administrative personnel | 408 |
Total | 1,278 |
Education background | |
Education | Numbers (people) |
Postgraduate | 148 |
Undergraduate | 487 |
3-years regular college graduate | 267 |
Polytechnic school graduate | 86 |
High school and below | 290 |
Total | 1,278 |
2. Remuneration Policy
During the reporting period, employee wages was paid monthly according to salary management provisions set by the Company, andthe performance-related pay was issued based on the actual situation of benefit and individual performance assessment results at theyear-end, remuneration and benefit are connected as a whole.
3. Training Plan
SZCH fully draws on the excellent experience of the industry, according to the strategic development and talent echelon constructionneeds, the Company will continue to improve the talent selection, training and development system based on the core of “YouhePlan” for management trainees, the “Daoxiang Plan” for reserve talents and “Jinsui Plan” for the key position talents. Combines withthe company’s management innovation, organizational innovation and marketing innovation development needs to continuouslypromote the development and growth of management and professional talents, and build a high-quality professional talent team withSZCH characteristics.
In 2022, SZCH will continue to follow the strategic goal of "smart grain, oil and food supply chain quality service provider",combine the strategic path of "one chain, two parks and N platforms" and the actual business conditions, and strive to enhance thesupporting role of human resource management for the company's strategy. Empower innovative talents, make full use of internal andexternal, online and offline resources, create a standardized curriculum system and empowerment plan for the employees, continue topromote the systematization and professionalization of the company's training management, and further strengthen theimplementation of the company's innovation-driven development and strategy of talents strengthening the company.
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the ReportingPeriod
√ Applicable □ Not applicable
The profit distribution policy of the Company is specified in the Article of Association as:
(1) Profit distribution of the Company should pay attention to the reasonable investment return to the investors,and the profit distribution policy should maintain continuity and stability;
(2) The Company may distribute dividends in the form of cash or a combination of cash and stocks, and may payinterim cash dividends;
(3i) The following conditions shall be met at the same time when the Company intends to implement cashdividends:
1. Earnings per share for the year is not less than 0.1 yuan;
2. The audit institution shall issue a standard unqualified audit report on the company's annual financial report;
3. The company has no major investment plans or major cash expenditures (except for fund-raising projects).Major investment plans or major cash expenditures refer to the cumulative expenditures that the company intendsto invest, acquire assets, or purchase equipment in the next twelve months reach or exceed 30% of the company'smost recent audited total assets, and exceed 50 million yuan;
(4) In principle, the company's annual profits distributed in cash should not be less than 10% of the attributableprofits realized in the year; and the company’s cumulative profits distributed in cash in the last 3 years should notbe less than 30% of the annual average attributable profits realized in the last 3 years. Under the premise ofensuring the distribution of cash profits, the company can additionally adopt the method of stock dividenddistribution for profit distribution; the company's annual profit distribution amount shall not exceed the company'saccumulated undistributed profits at the end of the year, and shall not damage the company's ability to continueoperations;
(5) The specific profit distribution plan shall be drawn up by the board of directors and submitted to the generalmeeting of shareholders for deliberation. The company provides a variety of ways to accept the recommendationsand supervision of all shareholders, independent directors and supervisors on the company's dividends. If theannual report period is profitable but the board of directors does not propose a cash dividend plan in accordancewith the "Articles of Association", it shall be disclosed in the periodic report the reasons for not proposing a cashdividend plan in accordance with the "Articles of Association", and the purpose of funds not used for dividendsbut retained by the company, the independent directors shall express independent opinions on this purpose, in
addition to on-site meetings, the company shall also provide shareholders with an online voting platform whenconvening a general meeting of shareholders;
(6) If the company has not distributed cash profits in the last 3 years, it can not issue new shares to the public,issue convertible corporate bonds or allot shares to original shareholders;
(7) Where a shareholder illegally occupies the company’s funds, the company shall deduct the cash dividendsdistributed to the shareholder in order to repay the capital occupied;
(8) When the company adjusts its profit distribution policy, it should take the protection of shareholders,especially small and medium shareholders' rights and interests, as the starting point for detailed argumentation,and the board of directors should submit it to the general meeting of shareholders for review and approval by aspecial resolution, while independent directors should express clear independent opinions;
(9) The company provides multiple channels (telephone, fax, e-mail, interactive platform, etc.) to accept allshareholders' suggestions and supervision on the company's dividends.
The foreign exchange conversion rate of domestically-listed foreign share dividends is calculated based on thecentral parity rate of Hong Kong dollar against RMB announced by the People's Bank of China on the firstworking day after the resolution date of the general meeting of shareholders.
During the reporting period, the company’s profit distribution complied with the company’s articles of associationand review procedures, and fully protected the legitimate rights and interests of small and medium investors,independent directors expressed their opinions, the profit distribution procedures were compliant and transparent.During the reporting period, the company's profit distribution policy has not been adjusted or changed.
Special explanation on cash dividend policy | |
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): | Y |
Well-defined and clearly dividend standards and proportion (Y/N): | Y |
Completed relevant decision-making process and mechanism (Y/N): | Y |
Independent directors perform duties completely and play a proper role (Y/N): | Y |
Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected (Y/N): | Y |
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N): | Not applicable |
The Company gains profits in reporting period and the has positive profit available for distribution to shareholders of the parentcompany but no cash dividend distribution plan has been proposed
□ Applicable √ Not applicable
Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) | 0 |
Dividends for every 10-share (RMB) (Tax included) | 2.50 |
Equity base of distribution plan (Share) | 1,152,535,254 |
Cash bonus distribution (RMB) (Tax included) | 288,133,813.50 |
Cash bonus distribution in other ways (i.e. share buy-backs) (RMB) | 0.00 |
Total cash bonus (including other ways) (RMB) | 288,133,813.50 |
Profit available for distribution(RMB) | 295,149,580.63 |
Ratio of total cash dividend (other ways included) in total profit distribution | 100% |
Cash dividend | |
The Company is in a development stage and has the arrangement of major capital expenses, ratio of cash dividend in profit distribution should reach a minimum of 20% while the profit distributed. | |
Detailed explanation on profit distribution or capital accumulation fund conversion plan | |
After audited by BDO China Shu Lun Pan Certified Public Accountant LLP, in consolidate statement for year of 2021, the net profit attributable to shareholders of parent company amounted as 428,720,226.09 yuan, net profit of parent company was 232,079,150.47 yuan; Ended as 31st December 2021, the profit of parent company that can be distributed for shareholders was 295,149,580.63 yuan, balance of consolidate capital public reserves was 1,259,639,656.65 yuan. In line with relevant regulations and Article of Association, combined with the actual development needs of the Company and consider the interest of shareholders, BOD plans to submit the equity distribution plan for year of 2021 to shareholders general meeting: based on total share capital 1,152,535,254 shares of the Company on 31st December 2021, distributed 2.5 Yuan (tax included) for every 10-share to all shareholders with zero share bonus (tax included), and no share converted from capital reserve |
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentivesthat have not been implemented.
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the Company Law, the Guidelines for Governance of Listed Companies, the relevantregulations of the China Securities Regulatory Commission and other relevant national laws and regulations, thecompany has established a general meeting of shareholders, a board of directors, a board of supervisors, a partycommittee, and managers. The board of directors consists of a strategy committee, a remuneration and appraisalcommittee, a nominations committee and an audit committee, clarified the responsibilities and authorities ofdecision-making, execution, and supervision, and formed a scientific and effective division of responsibilities andchecks and balances mechanism, providing a good internal environment for the establishment and operation of thecompany’s internal control system.In terms of the construction and implementation of the internal control system, the board of directors isresponsible for the establishment, improvement and effective implementation of the internal control system, theboard of supervisors supervises the establishment and implementation of the internal control system of the boardof directors, and the managers are responsible for organizing the daily operation of the company’s internal controlsystem, and the company’s risk management and internal audit department is specifically responsible fororganizing and coordinating the establishment, implementation, evaluation and daily work of the internal controlsystem.The company has established management systems and procedures in line with internal control managementnorms in terms of organizational structure, development strategy, internal audit and supervision, human resources,social responsibility, corporate culture, capital management, procurement business, sales business, assetmanagement, engineering project management, research and development, guarantee business, investmentmanagement, contract management, budget management, financial reports, and information communication,which have been effectively implemented in the daily business operation and management process.
2. Details of major defects in internal control identified during the reporting period
□Yes √No
XIII. Management and controls on the subsidiary during reporting period
Name | Integration plans | Integration progress | Problems encountered in integration | Measures taken to resolve | Progress in solution | Follow-up solution plan |
Wuhan Jiacheng Biotechnology Co., Ltd | The Company sent senior executive to manage the management structure of Wuhan Jiacheng Biotechnology Co., Ltd; | Various integration initiatives are in order | N/A | N/A | N/A | N/A |
at the same time, a number of management systems were developed and introduced and products structure was adjusted | promotion |
XIV. Internal control self-appraisal report or internal control audit report
1. Self-appraisal Report of Internal Control
Disclosure date of full internal control evaluation report | 2022-04-26 | |
Disclosure index of full internal control evaluation report | “Internal control self-appraisal report of SHENZHEN CEREALS HOLDINGS CO., LTD. in 2021” published on Juchao Website (http: //www.cninfo.com.cn) | |
The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the Company's consolidated financial statements | 100.00% | |
The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the Company's consolidated financial statements | 100.00% | |
Defects Evaluation Standards | ||
Category | Financial Reports | Non-financial Reports |
Qualitative criteria | 1. Major defects: Defect alone or together with other defects in a timely manner cause unpreventable or undetectable and uncorrectable material misstatement in the financial statements. The Company may indicate the presence of significant deficiencies in internal control over financial reporting if following circumstances: (1) The directors, supervisors and senior management fraud; (2) Enterprise corrected mistake which has been published in financial statements; (3) CPA found material misstatement in current financial statements, but internal control during operation failed to find the misstatements; | 1.Qualitative criteria for major defects are as follows: (1) The lack of democratic decision-making process, such as the lack of decision-making on major issues, an important appointment and dismissal of cadres, major investment decisions, large sums of money using the decision-making process; (2) Decision-making process is not scientific, such as major policy mistakes, resulting in significant property damage to the Company; (3) Serious violations of national laws and regulations; (4) Loss of key executives or loss of a large number of key talent; |
(4) Oversight of internal control by Corporate Audit Committee and the internal audit is invalid; (5) Particularly important or significant deficiencies found during internal control has not been rectified; (6) The lack of business-critical system or invalid system. 2. Important defect: defect alone or together with other defects in a timely manner cause unpreventable or undetectable and uncorrectable material misstatement in the financial statements, although not reach and exceed the level of importance, should lead to management attention misstatements. 3. General Defects: other internal defects do not pose a significant or important defect control deficiency. | (5) Negative media news is frequent, And cause nationwide impact. 2. The qualitative criteria for important defects are as follows: (1) The decision-making process is not perfect; (2)The company’s internal management system has not been effectively implemented, resulting in losses; (3) The media’s negative news is frequent and has certain influence; (4) The general defects in the internal control evaluation have not been corrected. 3. General defects refer to other internal control defects that do not constitute major defects or important defects. | |
Quantitative standard | Major defects: Potential misstatement of total assets ≥ 1% of total assets; Potential misstatement of Operating revenue ≥ 1% of operating income; Potential misstatement of total profit≥ 5% of total profit. Important defects: 0.5% of total assets ≤ Potential misstatement of total assets <1% of total assets, 0.5% of operating income≤ Potential misstatement of Operating revenue <1% of operating income, 2.5% of total profit≤ Potential misstatement of total profit <5% of total profit; General Defects: Potential misstatement of total assets <0.5% of total capital; Potential misstatement of Operating revenue <0.5% of operating income; Potential misstatement of total profit <2.5% of total profit; | Major defects: the amount of direct property loss ≥ 12 million yuan, have been officially disclosed outside the Company disclosed in periodic reports and adversely affected. Important defects: 3 million yuan < the amount of direct property loss < 12 million yuan, punished by the state government but the Company disclosed in periodic reports on the negative impact; General defects: the amount of direct property loss ≤ 3 million yuan, punished by the provincial (including provincial) government but the Company disclosed in periodic reports on the negative impact; |
Amount of significant defects in financial reports | 0 |
Amount of significant defects in non-financial reports | 0 |
Amount of important defects in financial reports | 0 |
Amount of important defects in non-financial reports | 0 |
2. Audit report of internal control
√ Applicable □ Not applicable
Deliberations in Internal Control Audit Report | |
BDO China Shu Lun Pan Certified Public Accountant LLP believes the Company was in accordance with the "basic norms of internal control" and the relevant provisions and maintained effective internal control of financial reporting in all material respects on 31 December 2021. | |
Disclosure details of audit report of internal control | Disclosed |
Disclosure date of audit report of internal control (full-text) | 2022-04-26 |
Index of audit report of internal control (full-text) | “Internal control audit report of SHENZHEN CEREALS HOLDINGS CO., LTD. in 2021” published on Juchao Website (www.cninfo.com.cn) |
Opinion type of auditing report of IC | Standard unqualified |
Whether the non-financial report had major defects | No |
Whether modified audit opinions carried out for the audit report of internal control from CPA or not
□ Yes √ No
Whether audit report of internal control, issued by CPA, is in agreement with self-evaluation report, issued by the Board
√ Yes □ No
XV. Rectification of Self-examination Problems in Special Governance Actions in ListedCompanyDuring the reporting period, the company conducted self-examination and self-correction on corporategovernance in accordance with the requirements of the Announcement on Launching Special Actions onCorporate Governance of Listed Companies of the China Securities Regulatory Commission. Through thisself-examination, the company has established and improved a relatively complete and reasonable corporategovernance structure and internal control system in accordance with relevant laws and regulations such as theCompany Law, Guidelines for Governance of Listed Companies, Guidelines for the Standardized Operation ofListed Companies in the Shenzhen Stock Exchange, etc.. The company didn’t find any major deficiencies andrisks in standardized operations.In the future, the company will focus on improving the high-quality development level of listed companies,
continue to improve the corporate governance system, effectively improve the effectiveness of corporategovernance and scientificity of decision-making, and achieve stable operation and sustainable development of thecompany.
Section V. Environmental and Social ResponsibilityI. Major environmentalThe listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes √ No
Administrative punishment for environmental problems during the reporting period
Company name or subsidiary name | Reason for punishment | Violation | Punishment result | Impact on the production and operation of listed company | The company’s rectification measures |
Dongguan International Food Industrial Park Development Co., Ltd. | On December 21, 2021, it violated Article 23 of the Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution” regarding the provisions of “discharging industrial noise to the surrounding living environment within the city limits, and failing to meet the national environmental noise emission standards for industrial enterprises” | The noise of measuring point 2# which was meter outside the northeast of the red line of the enterprise building exceeded 3dB (A), and the noise of measuring point 2# which was one meter outside the northeast of the red line of the enterprise building exceeded 9dB (A) | The production was restricted for 3 months, and the correction method of production restriction shall be subject to the goal of reaching the emission standard | N/A | Noise reduction has been carried out by adopting measures such as soundproof walls, adding mufflers to the equipment, and changing the glass to soundproof glass. |
Dongguan International Food Industrial Park Development Co., Ltd. | On May 8, 2021, it violated Article 18 of the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution regarding the provisions that “ enterprises, institutions and other producers and operators shall conduct environmental impact assessment and publicize environmental impact assessment documents in | The unorganized exhaust gas particles exceeded the standard by 7.1 times. During monitoring, when unloading grain, equipment such as grab buckets produced dust and other pollutants. | The hearing has been passed, and no administrative penalty decision has been made. | N/A | Dust suppression funnels have been used in the operation to effectively reduce dust pollution. |
accordance with law when their constructing projects have an impact on the atmospheric environment; those who discharge pollutants into the atmosphere shall comply with the standards for the discharge of air pollutants and comply with the requirements for controlling the discharge of key air pollutants ”. | |||||
Dongguan International Food Industrial Park Development Co., Ltd. | On June 2, 2021, it violated Article 23 of the Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution regarding the provisions of “discharging industrial noise to the surrounding living environment within the city limits, and failing to meet the national environmental noise emission standards for industrial enterprises”. | The noise of measuring point 2# which was one meter away from the northeast of the factory boundary exceeded 4dB (A), and the noise of measuring point 4# which was one meter away from the northeast of the factory boundary exceeded 13dB (A) | The hearing has been passed, and no administrative penalty decision has been made. | N/A | Noise reduction has been carried out by adopting measures such as soundproof walls, adding mufflers to the equipment, and changing the glass to soundproof glass. |
Other environmental information disclosed refer to key pollutersNilMeasures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √Not applicable
Reasons for not disclosing other environmental informationThe company attached great importance to environmental protection work, and each subsidiary has builtcorresponding environmental protection facilities according to the actual situation of production and operation totreat waste gas, dust, wastewater and solid waste generated in the production process, so as to make its emissionsreach the national and local relevant standards. At the same time, based on its own business characteristics, thecompany’s subsidiaries have formulated a series of rules and regulations on environmental protection and strictlyimplemented them to institutionalize and standardize the environmental protection.II. Social responsibility
During the reporting period, the Company has been strictly in accordance with "Company Law", "Securities Law","Articles of Association" and other relevant laws and regulations, continues to improve governance structure and
regulized operation. the Company attaches importance to social responsibility, sustains attention to social createvalue, integrity management according to law, to provide consumers with safe and secure products, high-quality,green and healthy products to enhance the capacity for sustainable development and overall competitiveness;making efforts to improve management, enhance innovation capability and core competencies; the Companyuphold a fair, just and open principles of treatment for all investors, with particular emphasis on safeguarding theinterests of minority shareholders; the Company strictly comply with national environmental laws and regulations,thoroughly implement green philosophy, strengthen ecological protection, comply with the overall development ofthe country and society, and strive to achieve economic and social benefits, short-term interests and long-terminterests of their own development and social development, coordination, thus achieve healthy and harmoniousdevelopment between the Company and the community, the Company and the environment.
III. Consolidating and expanding the achievements of poverty alleviation and ruralrevitalization2021 was the first year of rural revitalization, and it was also a key year for promoting the smooth transition ofpoverty alleviation policies and work systems to rural revitalization. In accordance with the document spirit of theOpinions on the Implementation of Targeted Poverty Alleviation in the New Era" (YF [2016] No. 13) by theGuangdong Provincial Party Committee and the Provincial Government, the task force dispatched by SZCH toGuilin Village, Yidu Town, Longchuan County, Heyuan City (hereinafter referred to as the task force stationed inthe village) completed the targeted poverty alleviation work task for Guilin Village by the end of 2020 through aseries of effective measures, and achieved the expected results. Guilin Village was no longer listed as a provincialpoverty-stricken village, and SZCH contributed to winning the battle against poverty as scheduled. In 2021, thetask force stationed in the village maintained its strength and worked hard, and completed the finishing work in apragmatic and efficient manner, so that the foundation of poverty alleviation would be more stable and the resultswould be more sustainable. In July, the task force stationed in the village was awarded the title of “AdvancedCollective for Poverty Alleviation” by the Leading Group of Heyuan Municipal Party Committee forImplementing the Rural Revitalization Strategy.
In order to solidly promote the effective connection between poverty alleviation and rural revitalization, accordingto the relevant work arrangements of the Provincial Party Committee and the Municipal Party Committee, SZCH,Government Offices Administration of Shenzhen, Meteorological Bureau of Shenzhen Municipality, China LifeProperty and Casualty Insurance and other units selected personnel to form a task force stationed in towns to helptowns and villages (hereinafter referred to as the task force stationed in towns) to go to Tuocheng Town,Longchuan County, Heyuan City to carry out rural revitalization and assistance work, giving full play to theadvantages of the industry and providing support for the industrial development of Tuocheng Town.
SZCH carried out the aid for Tibet work with heart and emotion, and sent the second batch of aid cadres to ChayuFarm in Nyingchi Prefecture in Tibet to relay aid to Tibet. The company leaders led a team to Chayu Farm toconduct research and make suggestions for the development of the local tea industry. Helped Chayu Farm to
increase its income by purchasing special agricultural products from the farm, and donated 200,000 yuan to ChayuFarm to help farm workers improve their working and living conditions.
SZCH actively responded to the policy requirements of “consumption poverty alleviation”, combined with businesscharacteristics, took multiple measures to expand the channels for purchasing poverty alleviation products, andmade a good combination of consumption poverty alleviation to further open up the “fast track” for the realizationof poverty alleviation agricultural products.
Section VI. Important EventsI. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actualcontroller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
Commitment reason | Promise by | Type of commitments | Content of commitments | Commitment date | Commitment term | Implementation |
Commitments for share merger reform | ||||||
Commitments in report of acquisition or equity change | ||||||
Commitments in assets reorganization | Food Materials Group | Other commitments | Commitment to non-normal business enterprises: For non-normal business enterprises under Shenzhen Cereals Group (including but not limited to enterprises that have been revoked business licenses, discontinued operation, etc.), the committed person will fully assist, urge and promote Shenzhen Cereals Group to implement the corresponding write-off procedures. After the completion of this reorganization, if Shenzhen Cereals Group or the listed company is called to account, receives administrative punishment or suffers any losses due to the abnormal operation of the non-normal business enterprises or the failure to handle write-off procedures in time, the committed person will bear the relevant legal liability, and fully compensate the listed company and the target company within 30 working days after the actual loss occurs. | 2018-03-23 | Implement as promised | Normal performance |
Food Materials Group | Other commitments | Relevant Commitments Regarding the Existence of Flaws in Leased Property: The leased house property of Shenzhen Cereals Group and its holding subsidiaries has | 2018-03-23 | Implement as promis | Normal perfo |
the following conditions: (1) The lessor has not provided the ownership documentary evidence of the property and/or the documentary evidence proving the lessor has the right to rent out the house property. (2) The lease term of part of the leased house property is more than 20 years; (3) Shenzhen Cereals Group and its subsidiaries sublet part of the leased house property to a third party without the consent of the lessor; (4) The leased house property of Shenzhen Cereals Group and its holding subsidiary has not been registered for the housing lease. If Shenzhen Cereals Group and its holding subsidiaries are imposed any form of punishment by the relevant government departments or assume any form of legal responsibility, or occur any losses or expenses because their leased place and / or house property do not comply with relevant laws and regulations, the committed person will be willing to bear any losses, damages, claims, costs and expenses incurred, suffered and assumed by Shenzhen Cereals Group and its holding subsidiaries, and protect Shenzhen Cereals Group and its holding subsidiaries from damages. In addition, the committed person will support Shenzhen Cereals Group and its holding subsidiaries to actively advocate their rights against the corresponding parties in order to safeguard and protect the interest of Shenzhen Cereals Group and the listed companies to the maximum extent. | ed | rmance | |||
Food Materials Group | Other commitments | Commitment Letter on Flaws in House Property and Land: In the case that some of the house properties held by Shenzhen Cereals Group fail to rename the obligee of the property ownership certificate, the committed person will fully assist, urge and promote Shenzhen Cereals Group or its subsidiaries to go through the formalities. After the completion of this reorganization, if Shenzhen Cereals Group or the listed company is called to account, receives administrative punishment or suffers any losses due to the failure to rename the obligee of the property ownership certificate, the committed person will bear the relevant legal liability, and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. In view of the fact that some house properties held by Shenzhen Cereals Group fail to complete the registration procedures for ownership transfer, the committed person will fully assist, urge and promote Shenzhen Cereals | 2018-03-23 | Implement as promised | Normal performance |
subsidiary of Shenzhen Cereals Group, has not applied for land use right certificates, the committed person will fully assist, urge and promote the subsidiary of Shenzhen Cereals Group to manage the application procedures of the corresponding land use right certificates. After the completion of the reorganization, if Shenzhen Cereals Group or the listed company is called to account, receives administrative punishment or suffers any losses because the land use right certificate cannot be issued due to any ownership disputes in the above-mentioned land use right, the committed person will bear the relevant legal liability, and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. If Shenzhen Cereals Group and its holding subsidiaries are required to take back the sites and/or properties or imposed any form of punishment by the relevant government departments or assume any legal liability, or suffer any losses or expenses arising from the modification for flaws in sites and/or properties as the above-mentioned and other self-owned or leased sites and/or properties fail to comply with the relevant laws and regulations, the committed person will assume any losses, damages, claims, costs and expenses incurred, suffered and assumed by Shenzhen Cereals Group and its holding subsidiaries, and protect the list companies and Shenzhen Cereals Group from damages. In addition, the committed person will support the company and its holding subsidiaries to actively advocate their rights against the corresponding parties in order to safeguard and protect the interest of the company and its holding subsidiaries to the maximum extent. | |||||
Food Materials Group | Other commitments | Commitment Letter on the Company’s System Reform and System Evaluation of Shenzhen Cereals Group in 1998: After the completion of this restructuring, if Shenzhen Cereals Group or the listed company is called to account, receives administrative punishment or suffers any losses as the system reform is not evaluated or other reasons related to this reform, the committed person will bear the relevant legal liability, and fully compensate the listed company and Shenzhen Cereals Group within 30 working days after the actual loss occurs. | 2018-03-23 | Implement as promised | Normal performance |
Food Materials | Other commitm | Commitment to Maintain the Position of Controlling Shareholders of Listed Companies: Within 60 months | 2018-03-23 | 2023-11-12 | Normal |
Group | ents | from the date of completion of this transaction, the Company promises not to voluntarily give up the controlling shareholder status in the listed company, and guarantees that the controlling shareholder status of the listed company will not be changed due to reasons of the Company during this period, nor assists any other party to seek the controlling shareholder status of the listed company. Within 60 months from the date of completion of this transaction, the Company will not take the initiative to change the status of the controlling shareholder of the listed company through any actions including reducing the share holding in the listed company. | performance | ||
Food Materials Group | Other commitments | Commitment on the public shares: After the completion of the transaction, the committed person will cautiously nominate directors and supervisors, and will not nominate candidates for directors, supervisors and senior management to the listed company that will cause the proportion of public shares of the listed company not meet the requirements of the Listing Rules of Shenzhen Stock Exchange.; nor will vote for the relevant shareholders’ meeting and/or board resolutions for selecting directors, supervisors and senior executives of listed companies that will make the proportion of public shares of listed companies not meet the requirements of the Listing Rules of Shenzhen Stock Exchange. | 2018-03-23 | Implement as promised | Normal performance |
Food Materials Group | Shares limited for sale commitment | Commitment on the Lock-up Period of the Shares: Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao” and “Listed Company”) intends to purchase the 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”, “target company”) held by the shareholders of SZCG through issuance of shares. Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the committed person”), the controlling shareholder of SZCG, has made the following commitments: 1. The committed person should not transfer the shares of the listed company obtained from this transaction within 36 months from the date of listing of the shares. If the closing price of the listed company’s stock is lower than the issue price for 20 consecutive trading days within 6 months after the completion of this transaction, or the closing price is lower than the issue price at the term end of 6 months after the completion of the transaction, the | 2018-04-02 | 2022-5-12 | Normal performance |
lock-up period for the committed person to hold the company’s stock automatically prolongs for at least 6 months. 2. At the expiration of the above-mentioned lock-up period, if the committed person doesn’t fully fulfill the performance compensation obligation stipulated in the Performance Compensation Agreement, the lock-up period of the shares issued to the committed person will be prolonged to the date when the performance compensation obligation is fulfilled. 3. Before this transaction, the shares of the Listed Company held by the committed person and the companies controlled by the promise shall not be transferred within 12 months after the completion of this transaction. 4. During the lock-up period of shares, the part that the committed person has increased due to the bonus issue of dividends, transfer of share capital or share allotment of the Listed Company and other ex dividend and ex right matters should also abide by the above-mentioned share lock-up arrangement. 3. If the above lock-up period does not comply with the latest regulatory requirements of the securities regulatory authority, the committed person will agree to make corresponding adjustments according to the latest regulatory opinions of the regulatory authorities, and implement in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shenzhen Stock Exchange after the lock-up period expires. | |||||
Food Materials Group | Other commitments | Commitment letter of Shenzhen Food Materials Group Co., Ltd on pending litigation of Shenzhen Cereals Group Co., Ltd.: Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao”, “Listed Company”) intends to purchase the 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”, “target company”) held by the shareholders of SZCG through issuance of shares. In view of the two unfinished major lawsuits/arbitration of SZCG, Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the committed person”), the controlling shareholder of SZCG, has made the following commitments: If SZCG and its controlling subsidiaries suffer any claims, compensation, losses or expenses due to the unsettled major lawsuits/arbitration about the contract dispute of international sale of soybean with Noble Resources Co., Ltd. and the contract dispute with | 2018-04-02 | Implement as promised | Normal performance |
Guangzhou Jinhe Feed Co., Ltd. and Huangxianning Import Agent, the committed person will assume the compensation or loss caused by the above two outstanding major lawsuits/arbitration. | |||||
Food Materials Group | Other commitments | Commitment letter of Shenzhen Food Materials Group Co., Ltd. on risks of making a supplementary payment for the rent at earlier stage of Pinghu Grain Depot: Shenzhen Shenbao Industrial Co., Ltd. intends to purchase the 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”) held by the shareholders of SZCG through issuance of shares. Shenzhen Food Materials Group Co., Ltd. (hereinafter referred to as “the committed person”), the controlling shareholder of SZCG, has made the following commitments: If SZCG needs to make a supplementary payment for the rent before assessment basis date to the property right unit of Pinghu Grain Depot (or its authorized unit), the total amount of the rent and other related charges and expenses shall be borne by the committed person. | 2018-04-02 | Implement as promised | Normal performance |
Food Materials Group | Other commitments | Commitment letter on the house properties of Shenzhen Cereals Group and its subsidiaries that have not obtained the housing ownership certificate: Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao” and “listed company”) intends to purchase the 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”, “target company”) held by the shareholders of SZCG through issuance of shares. Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the committed person”), the controlling shareholder of SZCG, has made the following commitments: If SZCG and its subsidiaries suffer any administrative punishment or losses due to their house properties without the housing ownership certificate, the committed person will bear the relevant legal responsibilities and fully compensate the listed company and SZCG within 30 working days after the actual loss occurs. | 2018-04-02 | Implement as promised | Normal performance |
Food Materials Group | Shares limited for sale commitment | Commitment on Shenzhen Food Materials Group Co., Ltd to accept the restricted shares of non-tradable shares reform of Shenzhen Shenbao Industrial Co., Ltd. held by Shenzhen Investment Holdings Co., Ltd.: Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as | 2018-04-04 | Implement as promised | Normal performance |
“Food Materials Group”) accepts 79,484,302 shares of A shares of Shenshenbao A (000019) (including 66,052,518 shares of unrestricted A shares and 13,431,784 shares of restricted A shares ) held by Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “Shenzhen Investment Holdings”) by the free transfer, totally accounting for 16% of the total share capital of Shenshenbao. Shenzhen Investment Holdings made the following commitments in the reform of non-tradable shares of Shenshenbao in 2006: “To make effective and long-term incentives for the management, after the completion of the share reform, Shenzhen Agricultural Products Co., Ltd. (hereinafter referred to as “Agricultural Products”) and Shenzhen Investment Holdings, the company’s non-tradable shareholders, will sell their shareholdings after consideration which account for 6%-8% of the company’s total share capital to the management of the company in three years based on the shareholding ratio of Agricultural Products and Shenzhen Investment Holdings after the share reform (i.e. accounting for 6%-8% of the company’s total share capital of 181,923,088 shares after the share reform).” Food Materials Group made a commitment that after the completion of the free transfer of the state-owned shares, Food Materials Group would continue to perform the above commitments it made when Shenzhen Investment Holdings makes the non-tradable shares reform to Shenshenbao, which is effective in the long run. | |||||
Food Materials Group | Commitments on inter-industry competition, related transactions and capital occupancy | Commitment Letter on Avoiding Horizontal Competition: In view of the fact that Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Listed Company”) intends to acquire 100% equity of Shenzhen Cereals Group Co., Ltd. held by Shenzhen Food Materials Group Co., Ltd(hereinafter referred to as “the Company”) by issuing shares to purchase assets, the Company has made the following commitments: 1. As of the issue date of this Commitment Letter, the Company and other enterprises controlled by the Company have not engaged in any business or activity that directly or indirectly constitute horizontal competition to the Listed Company and its subsidiaries in the business, and guarantees that it will not engage or induce any enterprise controlled by the Company to engage in any business or activity that directly or indirectly constitute | 2018-06-08 | Implement as promised | Normal performance |
horizontal competition to the Listed Company and its subsidiaries in the future. 2. If the business opportunity obtained by the Company and other enterprises controlled by the Company constitutes horizontal competition or may constitute horizontal competition to the main business of the Listed Company and its subsidiaries, the Company will immediately notify the Listed Company and try its best to give the business opportunity to the Listed Company to avoid horizontal competition or potential horizontal competition with the Listed Company and its subsidiaries and ensure the interests of Listed Company and other shareholders of Listed Company are not impaired. 3. If the main business of the Listed Company and its subsidiaries constitutes horizontal competition or may constitute horizontal competition to the Company and other enterprises controlled by the Company due to business development or extension, the Company and other enterprises controlled by the Company shall take the following feasible measures based on specific circumstance to avoid competition with the Listed Company: (1) Stop business that constitutes competition or may constitute competition to the Listed Company; (2)Transfer the competitive businesses and assets to the Listed Company at fair prices; (3) Transfer the competitive business to an unrelated third party; (4) Other ways to protect the interests of the Listed Company; 4. If the Company violates the above commitments and causes losses to the Listed Company, the Company will compensate the Listed Company for the incurred losses after the losses are determined. 5. The above commitments continue to be valid during the period when the Company is the controlling shareholder of the Listed Company. | |||||
Food Materials Group | Commitments on inter-industry competition, related transactions and capital | Commitment Letter on Reducing and Regulating Related Transactions: In view of the fact that Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Listed Company”) intends to acquire 100% equity of Shenzhen Cereals Group Co., Ltd. held by Shenzhen Food Materials Group Co., Ltd(hereinafter referred to as “the Company”) by issuing shares to purchase assets, the Company has made the following commitments: 1. The enterprises directly or indirectly controlled or affected by the Company and the restructured company and its | 2018-06-08 | Implement as promised | Normal performance |
occupancy | holding companies will regulate and minimize the related transactions. For related transactions that cannot be avoided or have reasonable reasons to occur, the Company promises to follow the market-oriented principle of justice, fairness and openness, and sign agreements in accordance with relevant laws and regulations, regulatory documents and articles of association, perform legal procedures, fulfill information disclosure obligations and handle relevant approval procedures in accordance with the law, and ensure not to damage the legitimate rights and interests of the company and other shareholders through related transactions. 2. The enterprises directly or indirectly controlled or affected by the Company will strictly avoid borrowing from the company and its holding and shareholding companies, occupying the funds of the company and its holding and shareholding companies, or embezzling the company’s funds by taking advance payments and compensatory debts from the company and its holding and shareholding companies. 3. After the completion of this transaction, the Company will continue to exercise its shareholder rights in strict accordance with the relevant laws and regulations, regulatory documents and the relevant provisions of the Articles of Association; and fulfill its obligation of avoiding voting when the company’s general meeting of shareholders is voting on related transactions involving the Company. 4. The Company guarantees not to obtain any improper interests through the related transactions or cause the company and its holding and shareholding companies to bear any wrongful obligations. If the company or its holding and shareholding companies suffer loses or the interests of the company or its holding and shareholding companies are embezzled by related transactions, the Company will the losses of the company and its holding and shareholding companies. | ||||
Food Materials Group | Other commitments | Commitment on the Standardized Operation of Listed Company: Shenzhen Shenbao Industrial Co., Ltd. intends to purchase 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”) held by Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the Company”) through issuance of shares. In response to the above transactions, the Company has made the following commitments: After | 2018-06-08 | Implement as promised | Normal performance |
of Association to select independent directors, and further enhance corporate governance. | |||||
Food Materials Group | Other commitments | Commitment Letter on the Legal Compliance of the Underlying Asset Operation: Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao”, “Listed Company”) intends to purchase 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”, “Target Company”) held by Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the Company”) through issuance of shares. The Company has made the following commitments: 1. The Target Company is a limited liability company established according to law and is validly existing, possesses statutory business qualifications, and the Target Company has obtained all the approvals, consents, authorizations and licenses required for its establishment and operation, and all approvals, consents and authorizations and licenses are valid and there is no reason or case that may result in the invalidation of the above approvals, consents, authorizations and licenses. 2. The Target Company has no major violations of laws and regulations in the production and operation in the last three years, there is no case that the Target Company should be terminated according to relevant laws, regulations, normative documents and the company’s articles of association. Except for litigations, arbitrations and administrative penalties disclosed in the Restructuring Report, the Target Company does not have any unsettled or foreseeable major litigation, arbitration and administrative penalty that adversely affect its operations or the amount is more than 10 million yuan. 3. The Target Company will perform the labor contracts with its employees independently and completely. 4. If the Target Company is subject to the fees or penalties of the relevant competent authorities in terms of industry and commerce, taxation, employee salaries, social security, housing provident fund, business qualifications or industry supervisors due to the facts already existing before the reorganization, the Company will fully compensates all the outstanding fees of the Target Company and bear all the losses suffered by Shenshenbao and the Target Company. 5. The Target Company legally owns the ownership and/or use rights | 2018-06-08 | Implement as promised | Normal performance |
of the offices, office equipment, trademarks and other assets required for normal production and operation, has independent and complete assets and business structure, and has legal ownership of its main assets, and the ownership of assets is clear. 6. There is no case that the Target Company impedes the transfer of ownership of the company, such as litigation, arbitration, judicial enforcement, etc., and there is no external guarantee that violates the law or the articles of association. After this reorganization, if the Company violates the above commitments and causes losses to Shenshenbao and the Target Company, the Company agrees to bear the aforementioned compensation/ liability for damage to Shenshenbao/ Target Company. | |||||
Food Materials Group | Other commitments | Commitment on the Independence of Listed Company: In view of the fact that Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenshenbao”) intends to acquire 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “Target Company”) held by Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the Company”) by issuing shares to purchase assets, the Company has made the following commitments: 1. Guarantee the independence of the personnel of Shenshenbao and the Target Company (1) Guarantee that the labor, personnel and compensation management of Shenshenbao and Target Company are completely independent of the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties after the completion of this restructuring. (2) Guarantee that the senior management personnel of Shenshenbao and Target Company are fully employed in Shenshenbao and Target Company and receive remuneration after the completion of this restructuring, and do not hold any post except for directors and supervisors in the Company and other companies, enterprises controlled by the Company or other economic organizations and related parties. (3) Ensure not to intervene into the shareholders’ meeting and the board of directors of Shenshenbao and Target Company to exercise their powers to determine the appointment and dismissal of personnel after the completion of this restructuring. 2. Guarantee the institutional independence of Shenshenbao and Target Company (1) After the completion of this restructuring, | 2018-06-08 | Implement as promised | Normal performance |
Ensure that Shenshenbao and Target Company will establish an independent financial department and an independent financial accounting system, and a standardized and independent financial accounting system after the completion of this restructuring. (2) Ensure that Shenshenbao and Target Company will open an independent bank account after the completion of this restructuring, and will not share bank accounts with the Company and other companies and enterprises controlled by the Company or other economic organizations and other related parties. (3) After the completion of this restructuring, the financial personnel of Shenshenbao and Target Company shall not take part-time jobs in the Company and other companies and enterprises controlled by the Company or other economic organizations and related parties. (4) After the completion of this restructuring, Shenshenbao and Target Company shall be able to make financial decisions independently, the Company shall not interfere with the use of funds of Shenshenbao and Target Company. (5) After the completion of this restructuring, Shenshenbao and Target Company shall pay taxes independently according to law. If the Company violates the above commitments, it will bear all the losses caused to Shenshenbao and Target Company. | |||||
Food Materials Group, Agricultural Products | Commitments on inter-industry competition, related transactions and capital occupancy | Commitment to Avoid Occupation of Non-operating Capital: Shenzhen Shenbao Industrial Co., Ltd. intends to acquire 100% equity of Shenzhen Cereals Group Co., Ltd. (hereinafter referred to as “SZCG”) held by Shenzhen Food Materials Group Co., Ltd (hereinafter referred to as “the Company”) through issuance of shares. In response to the above transactions, Food Materials Group and Agricultural Products have made the following commitments: 1. As of the issue date of this commitment letter, the committed person and its related person do not have any illegal use of funds and assets of the listed company and SZCG, and there is no case that the listed company and SZCG provide illegal guarantee for the committed person and its related person. 2. After the completion of the transaction, the committed person guarantees that the committed person and its related person shall not illegally occupy the funds and assets of the listed company in any way, nor require the listed company to provide illegal guarantee for the | 2018-06-08 | Implement as promised | Normal performance |
committed person and its related person under any circumstances, nor engage in any act to damage the legitimate rights and interests of the listed company and other shareholders. If the committed person violates the above commitments, it will bear all losses caused to the listed company and the target company and other companies and enterprises controlled by them or other economic organizations. | ||||||
Commitments make in initial public offering or re-financing | ||||||
Equity incentive commitment | ||||||
Other commitments for medium and small shareholders | ||||||
Completed on time (Y/N) | Y | |||||
If the commitment is overdue and has not been fulfilled, the specific reasons for incomplete performance and the work plan for next step shall be explained in | - |
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable √Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year
√Applicable □ Not applicable
Changes of important accounting policies
(1) Implementation of the Accounting Standards for Business Enterprises No. 21 - Lease (2018 Revision)The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 21 -- Lease ("New LeaseStandards" for short) in 2018. The Company has implemented the new lease standards from January 1, 2021.According to the revised standards, the company chooses not to re-evaluate whether they are leases or includeleases on the first execution date for contracts that already exist prior to the first execution date.The Company acts as the lesseeThe Company chooses to adjust the amount of retained earnings and other relevant items in its financialstatements at the beginning of the year of the first implementation of the new lease standards based on thecumulative impact of the first implementation of the new lease standards, without adjusting the comparable periodinformation.For an operating lease existing prior to the first execution date, the Company shall measure the lease liabilities at
the first execution date based on the present value of the remaining lease payment discounted at the incrementalborrowing rate of the Company at the first execution date, and measure the right-of-use assets according to one ofthe following two ways for each lease:
Assume that the book value of the new lease standards is adopted on the start date of the lease term and theCompany's incremental borrowing rate on the first execution date is used as the discount rate.Make necessary adjustments to the prepaid rent for the amount equal to the lease liability.Tip: Under each lease the enterprise may choose to measure the right-of-use assets according to either of theaboveFor operating leases prior to the first execution date, the Company may choose one or more of the followingsimplified treatments for each lease in conjunction with the above method: Tip: the enterprises need to bemodified according to the actual situation
1) The leases completed within 12 months after the first execution date shall be treated as short-term leases;
2) When measuring lease liabilities, leases with similar features shall use the same discount rate;
3) The measurement of the right-of-use assets does not include the initial direct cost;
4) Where there is an option to renew or terminate the lease, the lease term shall be determined according to theactual exercise of the option prior to the first exercise and other latest conditions;
5) As an alternative to the impairment test of the right-of-use asset, assess whether the contract containing thelease is a loss contract prior to the first execution date in accordance with the Notes "III (24). EstimatedLiabilities" and adjust the right-of-use asset according to the amount of loss provisions recorded in the balancesheet prior to the first execution date;
6) The lease changes occurring before the first execution date shall not be retroactively adjusted, and theaccounting treatment shall be conducted in accordance with the final arrangement of lease changes and the newlease standards.When measuring the lease liability, the Company uses the lessee’s incremental borrowing ate as of January 1,2021 (weighted average: 4.15%) to discount the lease payments
Outstanding minimum lease payments under significant operating lease as disclosed in the consolidate financial statements as of December 31, 2020 | 2,520,375.75 |
Present value of the interest rate discounted at the incremental borrowing rate on January 1, 2021 | 2,120,031.14 |
Lease liability under the new leasing standards as of January 1, 2021 | 2,120,031.14 |
Difference between the present value of the above discount and the lease liability |
For the finance lease existing before the first execution date, the Company shall measure the right-of-use assetsand lease liabilities respectively on the first execution date according to the original book value of the financelease assets and the finance lease payments payable.
The Company acts as the lessorFor the subleases classified as operating leases prior to the first execution date and surviving after the firstexecution date, the Company will re-evaluate them on the first execution date on the basis of the remaining
contract term and terms of the original lease and the sublease, and classify them in accordance with the provisionsof the new lease standards. If they are reclassified as finance leases, the Company will treat them as new financeleases.Except for subleases, the Company does not need to adjust the leases on which it is the lessor in accordance withthe new lease standards. The company shall conduct accounting treatment in accordance with the new leasestandards from the first execution date.
The main effects of the Company's implementation of the new lease standards on the financial statements are asfollows:
Content and reasons for changes in accounting policies | Approval procedure | Statement items affected | Impact on the amount on balance as of 1 Jan. 2021 | |
Consolidate | Parent company | |||
(1) As a lessee, the adjustment of the operating leases existing before the date of fist execution | Implemented in accordance with the Ministry of Finance | Right-of-use assets | 2,120,031.14 | |
Lease liability | 1,839,885.54 | |||
Non-current liabilities due in one year | 280,145.60 |
(2) Implementation of the "Interpretation No. 14 of Accounting Standards for Business Enterprises"The Ministry of Finance promulgated the "Interpretation No. 14 of Accounting Standards for BusinessEnterprises" (CK[2021] No. 1, hereinafter referred to as "Interpretation No. 14") on February 2, 2021, which hastaken effect as of the date of promulgation. The relevant business added from January 1, 2021 to the effective dateshall be adjusted according to Interpretation No. 14.
① Public-private partnership (PPP) project contracts
Interpretation No. 14 is applicable for the PPP project contracts that meet the "dual features" and "doublecontrols" described in the interpretation at the same time, and makes retroactive adjustment on the relevant PPPproject contracts that have been implemented before December 31, 2020 and have not been completed up to theimplementation date, where the retroactive adjustment is not feasible, the application begins at the beginning ofthe earliest period of retroactive adjustment, cumulative impact adjusts the retained earnings at the beginning ofthe year of the implementation date and other related items in the financial statements, and information ofcomparable periods shall not be adjusted. The implementation of the provisions does not have a significant impacton the Company's financial situation and operating results.
② Interest rate benchmark reform
Interpretation No. 14 provides a simplified accounting treatment for cases where the basis for determining cash
flows related to financial instrument contracts and lease contracts is changed as a result of the interest ratebenchmark reform.
According to the provisions of this interpretation, businesses related to the interest rate benchmark reformoccurring before December 31, 2020 shall be subject to retroactive adjustment, except where retroactiveadjustment is not feasible, and there is no need to adjust the data in the previous comparative financial statements.On the implementation date of this interpretation, the difference between the original carrying value of financialassets and financial liabilities and the new carrying value shall be included in the retained earnings or othercomprehensive income at the beginning of the annual reporting period of the implementation date of thisinterpretation. The implementation of the provisions does not have a significant impact on the Company'sfinancial situation and operating results.
(3) Execution of the “Notice on the Adjustment of the Scope of Application of the Provisions on the AccountingTreatment of COVID-19 Related Rent Concessions”On June 19, 2020, the Ministry of Finance issued the "Regulations on Accounting Treatment of RentalConcessions Related to the COVID-19 Epidemic" (CK (2020) No. 10), and enterprises can choose to adoptsimplified methods for accounting treatments for rent concessions and deferred payment of rents directly causedby the COVID-19 epidemic that meet the conditions.
On May 26, 2021, the Ministry of Finance promulgated the Notice on the Adjustment of the Scope of Applicationof the Provisions on the Accounting Treatment of COVID-19 Related Rent Concessions (CK [2021] No. 9), whichhas taken effective from May 26, 2021, the scope of application of COVID-19 pandemic-related rent concessionswhich are allowed to adopt the simplified method under the Provisions on the Accounting Treatment ofCOVID-19 Related Rent Concessions is adjusted from the "the concession applies only to lease payments payablebefore 30 June 2021" to "the concession only applies to lease payments payable before 30 June 2022" to "theconcession only applies to lease payments payable before 30 June 2022", and other conditions remain unchanged.The Company has selected the simplified accounting treatment method for all the eligible lease contracts beforethe adjustment of scope of application, and adopted the simplified accounting treatment method for all the eligibleand similar lease contracts after the adjustment of scope of application(Tip: if not all, the nature of the leasecontract treated using the simplified method should also be disclosed, however, the choice for the simplifiedmethod should be applied consistently to similar leases that qualify before and after the adjustment to the scope ofapplication of the "Regulations on Accounting Treatment of Rental Concessions Related to the COVID-19Epidemic" ), and made retroactive adjustment on relevant lease contracts that had adopted lease change foraccounting treatment before the release of the notice, but did not adjust the data of the previous comparativefinancial statement; The relevant rent concessions incurred between January 1, 2021 and the effective date of thenotice of which accounting treatment are not conducted in accordance with the provisions of the notice shall beadjusted in accordance with the notice.
(4) Implementation of the Interpretation No. 15 of Accounting Standards for Business Enterprises on the relatedpresentation of funds central managementOn December 30, 2021, the Ministry of Finance issued the Interpretation No. 15 of Accounting Standards forBusiness Enterprises (CK [2021] No. 35, hereinafter referred to as “Interpretation No. 15”), the content of the“related presentation of funds central management” came into force as of the date of its promulgation, and thefinancial statement data in the comparable period should be adjusted accordingly.
Interpretation No. 15 has explicitly stipulated how the balance involved in the centralized and unifiedmanagement of the funds of the parent company and member units through internal settlement centers and financecompanies should be presented and disclosed in the balance sheet. The implementation of this stipulation has nothad a significant impact on the financial condition and operating results of the Company.
Changes of important accounting estimateNil
Adjustment on the relevant items of financial statement at beginning of the year when implemented the newleasing standards
Consolidate balance sheet
Item | Balance at end of last year | Balance at beginning of the year | Number adjusted | ||
Re-classified | Re-measured | Total | |||
Right-of-use assets | 2,120,031.14 | 2,120,031.14 | 2,120,031.14 | ||
Lease liability | 1,839,885.54 | 1,839,885.54 | 1,839,885.54 | ||
Non-current liabilities due in one year | 104,225,183.07 | 104,505,328.67 | 280,145.60 | 280,145.60 |
The initial implementation of the new lease standard had no impact on the balance sheet of the parent company
VII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
√Applicable □ Not applicable
During the reporting period, newly established the Dongguan Shenliang Hualian Grain & Oil Trading Co., Ltd, acquired the WuhanJiacheng Biotechnology Co., Ltd and cancellation of the Heilongjiang Hongxinglong Nongken Shenxin Cereals Industrial Park Co.,ltd and Shenzhen Shenbao Property Management Co., Ltd.
VIII. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
Name of domestic accounting firm | BDO China Shu Lun Pan Certified Public Accountant LLP |
Remuneration for domestic accounting firm (in 10 thousand Yuan) | 69 |
Continuous life of auditing service for domestic accounting firm | 3 |
Name of domestic CPA | Qi Tao, Tao Guoheng |
Continuous life of auditing service for domestic CPA | 3、2 |
Whether re-appointed accounting firms in this period or not
□ Yes √ No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
During the reporting period, BDO China Shu Lun Pan Certified Public Accountant LLP was hired as the internal control auditinstitutions of the Company, 290,000 Yuan for internal control audit fee.
IX. Particular about delisting after annual report disclosed
□ Applicable √Not applicable
X. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting periodXI. Significant lawsuits and arbitration of the Company
√Applicable □ Not applicable
Lawsuits (arbitration) | Amount involved (in 10 thousand Yuan) | Resulted an accrual liability (Y/N) | Progress | Trial result and influence | Execution of judgment | Disclosure date | Disclosure index |
As of 31 December 2021, other lawsuits that did not meet the disclosure standards for significant lawsuits mainly including: disputes over purchase and sales contract, disputes over construction contracts, franchise contract disputes and private | 10,610.82 | Yes, the single loan contract dispute from subordinate enterprise of the Company is expected to form an accrual liability of 3.5 million yuan approximately. Other lawsuit-related cases are relatively small in individual amount, and will not have a significant impact on | The Company actively makes use of the advantageous resources of internal legal affairs and external laws firm to follow up and deal with the lawsuit-relate | After comprehensive analysis, the outcome of the cases involved in the lawsuits will not have a | It is actively advancing | Not applicable | Not applicable |
lending disputes, etc. | the Company when analyzed in conjunction with the progress of these cases. | d cases. At present, the Company is responding to and dealing with the cases effectively in accordance with relevant laws and regulations | significant impact on the Company |
XII. Penalty and rectification
□ Applicable √Not applicable
No penalty and rectification for the Company in reporting period.XIII. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction occurred in the period with routine operation concerned
2. Assets or equity acquisition, and sales of assets and equity
□ Applicable √ Not applicable
No related transaction concerning the asses or equity acquisition and sold in the period
3. Related transaction of foreign investment
□ Applicable √Not applicableNo related transaction of foreign investment occurred in the period
4. Related credits and liabilities
□ Applicable √ Not applicable
No related credits and liabilities occurred in period
5. Contact with the related finance companies
□ Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship andrelated parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties
7. Other major related transaction
□ Applicable √Not applicable
No other major related transaction in the Period.XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √Not applicable
No leasing in the Period
2. Major Guarantee
√Applicable □ Not applicable
Unit: 10 thousand Yuan
External Guarantee (not including guarantees to subsidiaries) | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guara | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
ntee (if any) | ||||||||||
Guarantee for the subsidiaries | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
Dongguan International Food Industrial Park Development Co., Ltd. | 37,632 | 2018-07-27 | 30,119 | Joint liability guaranty | N/A | N/A | 14 years | N | N | |
Dongguan Shenliang Oil & Food Trade Co., Ltd. | 11,417 | 2019-04-19 | 4,220 | Joint liability guaranty | N/A | N/A | 8 years | N | N | |
Total amount of approving guarantee for subsidiaries in report period (B1) | 115,100 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 34,339 | |||||||
Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 115,100 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 34,339 | |||||||
Guarantee of the subsidiaries for the subsidiaries | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if any) | Counter guarantee (if any) | Guarantee term | Complete implementation or not | Guarantee for related party (Y/N) |
Dongguan Shenliang Logistics Co., Ltd. | 27,300 | 2015-07-13 | 9,921 | Joint liability guaranty | N/A | N/A | 8 years | N | N | ||
Dongguan International Food Industrial Park Development Co., Ltd. | 39,168 | 2018-07-27 | 31,348 | Joint liability guaranty | N/A | N/A | 14 years | N | N | ||
Dongguan Shenliang Logistics Co., Ltd. | 21,930 | 2020-10-20 | 1,935 | Joint liability guaranty | N/A | N/A | 14 years | N | N | ||
Dongguan Shenliang Oil & Food Trade Co., Ltd. | 11,883 | 2019-04-19 | 4,393 | Joint liability guaranty | N/A | N/A | 8 years | N | N | ||
Total amount of approving guarantee for subsidiaries in report period (C1) | 52,700 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 792 | ||||||||
Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 152,981 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 47,597 | ||||||||
Total amount of guarantee of the Company (total of three above mentioned guarantee) | |||||||||||
Total amount of approving guarantee in report period (A1+B1+C1) | 167,800 | Total amount of actual occurred guarantee in report period (A2+B2+C3) | 35,131 | ||||||||
Total amount of approved guarantee at the end of report period (A3+B3+C2) | 268,081 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 81,936 | ||||||||
The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 17.70% | ||||||||||
Including: |
Balance of the guarantee provided for shareholder, actual controller and their related parties (D) | 0 |
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 81,936 |
Total amount of the aforesaid three guarantees (D+E+F) | 81,936 |
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A |
Explanations on external guarantee against regulated procedures (if applicable) | N/A |
Explanation on guarantee with composite wayNil
3. Cash asset management
(1) Trust financing
√ Applicable □Not applicable
Trust financing in the period
Unit: 10 thousand Yuan
Type | Fund sources | Amount occurred | Undue balance | Overdue amount | Impairment amount accrual for overdue financial management |
Bank financial products | Owned fund | 29,000 | 22,000 | 0 | 0 |
Total | 29,000 | 22,000 | 0 | 0 |
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √Not applicable
Unrecoverable principal or impairment possibility from entrust investment
□ Applicable √Not applicable
(2) Entrusted loans
□ Applicable √Not applicable
No entrusted loans in the Period
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XVI. Explanation on other significant events
√Applicable □ Not applicable
1. Personnel changes in BOD, BOS and senior managements
On July 16, 2021, the company received a written resignation from Ms. Jin Zhenyuan, a director and the ChiefFinancial Officer of the company. Due to job transfer, Ms. Jin Zhenyuan applied to resign from her position asdirector and chief financial officer of the company. On the same day, the company held the 16
thmeeting of thetenth board of directors, deliberated and approved the Proposal on the Appointment of the Company's ChiefFinancial Officer and the Proposal on the Addition of the Company's Directors, and agreed to appoint Ms. LuYuhe as the company's chief financial officer for a term from the date of the approval of the board of directors tothe expiration of the tenth board of directors; agreed to add Ms. Lu Yuhe as a director of the tenth board ofdirectors of the company and submit it to the shareholders' meeting for approval. For details, see theAnnouncement of Resolutions of the 16
th session of the 10
th
Board of Directors of the Company and theAnnouncement of Resignation of Directors and Chief Financial Officer of the Company and Appointment ofChief Financial Officer of the Company and the Addition of Directors of the Company published atwww.cninfo.com.cn on July 17, 2021.
The company held the first extraordinary shareholders' meeting of 2021 on August 2, 2021, which deliberated andapproved the Proposal on the Addition of Directors of the Company and agreed to add Ms. Lu Yuhe as a directorof the tenth board of directors of the company. The term of office shall be from the date of approval of theresolution at the shareholders' meeting of the company to the date of expiration of the tenth board of directors ofthe company. For details, see the Announcement of the Resolutions of the Company's First Extraordinary GeneralMeeting of Shareholders in 2021 published at www.cninfo.com.cn on August 3, 2021.
XVII. Significant event of subsidiary of the Company
√Applicable □ Not applicable
1. The company held the 15
th session of the 10
th
board of directors on June 1, 2021, which deliberated andapproved the Proposal on the Company's Acquisition of 49% Equity of Dongguan Shenliang Logistics Co., Ltd.,and agreed that the company acquires the 49% equity of Dongguan Shenliang Logistics Co., Ltd., held byDongguan Fruits and Vegetables and Non-staple Food Trading Market Co., Ltd. in cash, the purchase price was
321.68 million yuan. For details, see the "Announcement of Resolutions of the 15
th session of the 10
thBoard ofDirectors of the Company" and the "Announcement of the Company on the Acquisition of 49% Equity ofDongguan Shenliang Logistics Co., Ltd." published at www.cninfo.com.cn on June 2, 2021.
2. The company held the 16
th session of the 10
thboard of directors on July 16, 2021 and the first extraordinaryshareholders’ meeting on August 2, 2021, which deliberated and approved the "Proposal on the Consolidation andMerger of Shenzhen Shenbao Technology Center Co., Ltd., agreed to the company’s consolidation and merger ofthe wholly-owned subsidiary of Shenzhen Shenbao Technology Center Co., Ltd. For details, please see theAnnouncement of Resolutions of the 16
th session of the 10
thBoard of Directors of the Company and theAnnouncement of the Company’s Consolidation and Merger of Shenzhen Shenbao Technology Center Co., Ltd.published at www.cninfo.com.cn on July 17, 2021, and the Announcement of Resolutions of the Company’s FirstExtraordinary Shareholders’ Meeting in 2021 published at www.cninfo.com.cn on August 3, 2021. On January 19,2022, the implementation of absorption and merger of Shenzhen Shenbao Technology Center Co., ltd through itswholly-owned subsidiary Shenzhen Shenbao Huacheng Technology Co., Ltd was completed, and the ShenzhenShenbao Technology Center Co., ltd completed the cancellation of business registration.
3. On July 22, 2021, the company acquired 51% of the equity of Wuhan Jiacheng biotechnology Co.,Ltd in cashwith the purchase price of 21,675,000 yuan. After the completion of the acquisition, the Company held a total of51% of the equity of Wuhan Jiasheng biotechnology Co., Ltd.
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Shares
1. Changes in shares
Unit: Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
A mount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | A mount | Proportion | |
I. Restricted shares | 684,601,142 | 59.40% | 0 | 0 | 0 | 0 | 0 | 684,601,142 | 59.40% |
1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2. State-owned corporate shares | 684,569,567 | 59.40% | 0 | 0 | 0 | 0 | 0 | 684,569,567 | 59.40% |
3. Other domestic shares | 31,575 | 0.00% | 0 | 0 | 0 | 0 | 0 | 31,575 | 0.00% |
Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Domestic nature person’s shares | 31,575 | 0.00% | 0 | 0 | 0 | 0 | 0 | 31,575 | 0.00% |
4. Foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Including: Foreign corporate shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
overseas nature person’s share | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
II. Un-restricted shares | 467,934,112 | 40.60% | 0 | 0 | 0 | 0 | 0 | 467,934,112 | 40.60% |
1. RMB common shares | 416,184,832 | 36.11% | 0 | 0 | 0 | 0 | 0 | 416,184,832 | 36.11% |
2. Domestically listed foreign shares | 51,749,280 | 4.49% | 0 | 0 | 0 | 0 | 0 | 51,749,280 | 4.49% |
3. Foreign listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
III. Total shares | 1,152,535,254 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,152,535,254 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in the report period
□ Applicable √Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √Not applicable
3. Existing internal staff shares
□ Applicable √Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Number of shareholders and particulars about shares holding
Unit: Share
Total common stock shareholders in reporting period-end | 51,724 | Total common stock shareholders at end of last month before annual report disclosed | 63,924 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (found in note8) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) (found in | 0 |
note8) | ||||||||||
Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shares hold at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Information of shares pledged, tagged or frozen | |||
State of share | Amount | |||||||||
Shenzhen Food Materials Group Co., Ltd | State-owned legal person | 63.79% | 735,237,253 | 0 | 669,184,735 | 66,052,518 | ||||
Shenzhen Agricultural Products Group Co., Ltd | State-owned legal person | 8.23% | 94,832,294 | 0 | 15,384,832 | 79,447,462 | ||||
Hu Ying | Domestic nature person | 0.61% | 7,000,000 | 7,000,000 | 0 | 7,000,000 | ||||
Lin Junbo | Domestic nature person | 0.31% | 3,600,000 | 33,300 | 0 | 3,600,000 | ||||
Zhong Zhenxin | Domestic nature person | 0.29% | 3,295,500 | 3,295,500 | 0 | 3,295,500 | ||||
Sun Huiming | Domestic nature person | 0.28% | 3,250,062 | -186,400 | 0 | 3,250,062 | ||||
Jiang Zongyu | Domestic nature person | 0.28% | 3,198,200 | 3,198,200 | 0 | 3,198,200 | ||||
Chen Jiuyang | Domestic nature person | 0.25% | 2,856,700 | 112,000 | 0 | 2,856,700 | ||||
Hong Kong Securities Clearing Company Limited | Foreign legal person | 0.23% | 2,662,587 | -4,341,499 | 0 | 2,662,587 | ||||
Xu Wenxing | Domestic nature | 0.15% | 1,703,295 | -347,085 | 0 | 1,703,295 |
person | |||||
Strategy investors or general corporation comes top 10 common shareholders due to rights issue (if applicable) (see note 3) | N/A | ||||
Explanation on associated relationship among the aforesaid shareholders | Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co., Ltd., and holds 34% of Shenzhen Agricultural Products Group Co., Ltd. indirectly through Shenzhen Food Materials Group Co., Ltd.; the Company was not aware of any related relationship between other shareholders above, and whether they belonged to parties acting in concert as defined by the Acquisition Management Method of Listed Company. | ||||
Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | ||||
Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 10) | N/A | ||||
Particular about top ten shareholders with un-restrict shares held | |||||
Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | |||
Type | Amount | ||||
Shenzhen Agricultural Products Group Co., Ltd | 79,447,462 | RMB common shares | 79,447,462 | ||
Shenzhen Food Materials Group Co., Ltd | 66,052,518 | RMB common shares | 66,052,518 | ||
Hu Ying | 7,000,000 | RMB common shares | 7,000,000 | ||
Lin Junbo | 3,600,000 | RMB common shares | 3,600,000 | ||
Zhong Zhenxin | 3,295,500 | RMB common shares | 3,295,500 | ||
Sun Huiming | 3,250,062 | Domestically listed foreign shares | 3,250,062 | ||
Jiang Zongyu | 3,198,200 | RMB common shares | 3,198,200 | ||
Chen Jiuyang | 2,856,700 | RMB common shares | 2,856,700 |
Hong Kong Securities Clearing Company Limited | 2,662,587 | RMB common shares | 2,662,587 | |
Xu Wenxing | 1,703,295 | RMB common shares | 1,703,295 | |
Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co., Ltd., and holds 34% of Shenzhen Agricultural Products Group Co., Ltd. indirectly through Shenzhen Food Materials Group Co., Ltd.; the Company was not aware of any related relationship between other shareholders above, and whether they belonged to parties acting in concert as defined by the Acquisition Management Method of Listed Company. | |||
Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | At the end of reporting period, Shareholder – Lin Junbo holds 3,600,000 shares of the Company under customer credit trading secured securities account through China Merchants Securities Co., Ltd., common account holds 0 shares, and 3,600,000 shares are held in total at end of the Period. During the reporting period, the credit trading secured securities account has 3,600,000 shares increased, and shares held in the common account has 3,566,700 shares decreased, shares held are increased 33,300 shares in total. |
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holdingType of controlling shareholders: legal person
Controlling shareholders | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
Shenzhen Food Materials Group Co., Ltd | He Jianfeng | 2017-12-14 | 91440300MA5EWWPXX2 | The general business projects are: food safety infrastructure construction (including the upgrading of the farmers ’market, the upgrading of public places canteens, the construction of community cooked food centers, and the construction of agricultural product bases); safe food circulation and terminal sales; the establishment of food distribution channel platforms; Food industry investment and operation (Including |
the M & A investment of the core resources of the food industry chain and the cultivation of enterprises in the future direction); Domestic trade (excluding franchised, monopolized, and exclusively controlled commodities); engaging in import and export business (except for items prohibited by laws, administrative regulations, and the State Council, restricted items can only be operated after obtaining permission); online business activities (excluding restricted items). Licensed business items are food sales and supply business; emergency material production and operation; production, purchase and sale of I, II and III medical devices; pharmaceutical wholesale; ordinary freight, professional transportation, warehousing and logistics. | ||
Equity of other domestic/oversea listed Company control by controlling shareholder as well as stock-joint in report period | In addition to holding 63.79% equity of the company, Food Materials Group holds 34% equity of Agricultural Products. |
Changes of controlling shareholders in reporting period
□ Applicable √Not applicable
The controlling shareholder of the company has not changed during the reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: local state-owned assets managementType of actual controller: legal person
Actual controller | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
Shenzhen Municipal People’s Government State-owned | Wang Yongjian | 2004-04-02 | 11440300K317280672 | State-owned assets supervision and |
Assets Supervision & Administration Commission | management | |
Equity of other domestic/foreign listed Company controlled by actual controller in reporting period | - |
Changes of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
Actual controller controlling the Company by entrust or other assets management
□ Applicable √Not applicable
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and itspersons acting in concert accounts for 80% of the shares held by them
□ Applicable √Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √Not applicable
6. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,restructuring side and other commitment subjects
□ Applicable √Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□ Applicable √Not applicable
Section X. Financial Report
I. Audit Report
Type of audit opinion | Standard unqualified opinion |
Signing date of audit report | 2022-04-24 |
Name of audit institute | BDO China Shu Lun Pan Certified Public Accountant LLP |
Document serial of audit report | BDO CPAs Zi[2022]No. ZL10167 |
Name of the CPA | Qi Tao, Tao Guoheng |
Text of auditing reportAuditor’s Report
BDO CPAs Zi[2022]No.10167
To all shareholders of SHENZHEN CEREALS HOLDINGS CO., LTD.:
1. Auditing opinions
We have audited the financial statement under the name of SHENZHEN CEREALS HOLDINGS CO., LTD.(hereinafter referred to as SZCH Company), including the consolidated and parent Company’s balance sheet of 31December 2021 and profit statement, and cash flow statement, and statement on changes of shareholders’ equityfor the year ended, and notes to the financial statements for the year ended.In our opinion, the Company’s financial statements have been prepared in accordance with the AccountingStandards for Business Enterprises, and they fairly present the financial status of the Company and of its parentcompany as of 31 December 2021 and its operation results and cash flows for the year ended.
2. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with theCertified Public Accountants of China’s Code of Ethics for Professional Accountants, and we have fulfilled ourother ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
3. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthis matter.The key audit matters identified in our audit are summarized as follows:
Key audit matters | How to deal with the matter in audit |
(i) Revenue recognition |
Details and analysis of accounting policy of revenuerecognition found more in the (39) in Note V and (61) inVII of consolidated financial statements.SZCH operating revenue for 2021 is 10,139,563,710.11yuan, including: the grain and oil trading and processingbusiness is 8,898,880,048.64 yuan, accounting for
87.76% of the operating revenue. The grain and oil
trading and processing business has a significant impacton the financial statement, and it is one of the key indexof performance of SZCH, which has a special risks inmanipulation for achieving the predicted target,therefore, the identify of operating income will be listedas the key auditing event.
Details and analysis of accounting policy of revenue recognition found more in the (39) in Note V and (61) in VII of consolidated financial statements. SZCH operating revenue for 2021 is 10,139,563,710.11 yuan, including: the grain and oil trading and processing business is 8,898,880,048.64 yuan, accounting for 87.76% of the operating revenue. The grain and oil trading and processing business has a significant impact on the financial statement, and it is one of the key index of performance of SZCH, which has a special risks in manipulation for achieving the predicted target, therefore, the identify of operating income will be listed as the key auditing event. | The main audit procedures we implemented for the inventory and inventory falling price reserves include: (1) Understood, evaluated and tested the internal control design and implementation related to revenue recognition of SZCH Company; (2) Check the main sales contracts, identify terms related to transfer of the main risks and rewards on the ownership of goods, and evaluate whether the revenue recognition policy conforms to the Accounting Standards for Business Enterprise; (3) Carry out substantive analysis procedures for operating revenue and gross profit rate by month, products, etc., identify whether there is significant or abnormal fluctuation, and review the rationality of revenue; (4) We use sampling method to check the supporting documents related to revenue recognition, including sales contract, sales invoice, delivery order, goods right transfer document and accounting voucher, etc.; (5) In combination with the L/C receivable, confirm the sales volume of the current period to the main customers by sampling; (6) Carry out a cut-off test on the business income recognized before and after the balance sheet date to assess whether the business income is recognized in the appropriate accounting period. |
(ii) Inventory and inventory falling price reserves |
Details of inventory and inventory impairment foundmore in the (15) in Note V and (9) of consolidatedfinancial statements.As of December 31, 2021, the inventory book balancepresented on the consolidated financial statements ofSZCH Company was 3580.1586 million yuan, and theamount of inventory falling price reserves was 119.5399million yuan, book value of inventories was 3460.6187million yuan, accounting for 45.12% of the total assets.
Details of inventory and inventory impairment found more in the (15) in Note V and (9) of consolidated financial statements. As of December 31, 2021, the inventory book balance presented on the consolidated financial statements of SZCH Company was 3580.1586 million yuan, and the amount of inventory falling price reserves was 119.5399 million yuan, book value of inventories was 3460.6187 million yuan, accounting for 45.12% of the total assets. | The main audit procedures we implemented for the inventory and inventory falling price reserves of SZCH Company include: (1) Understood, evaluated and tested the internal control design and implementation related to inventory falling price reserves of SZCH Company; (2) We performed the inventory monitoring procedures for inventory, and checked the quantity and condition; (3) Acquired the calculation table of inventory falling price reserve, implemented the inventory impairment test procedure, and analyzed whether provision for |
Inventory is measured at the lower one between the cost and the net realizable value, due to the large amount of money of inventory, the SZCH management (Hereinafter referred to as "management") needed to make significant judgments when determining the decrease in value of inventory, including the consideration of government reserve as grain & oil, food and vegetable oil included, that affected by futures market, these important judgments have a significant impact on the valuation of inventory and provision for inventory depreciation at period-end; therefore, we determined the inventory and inventory falling price reserves as key audit matters. | inventory falling price reserves was sufficient; (4) We obtained the year-end inventory age list, conducted an analytical review of the inventory with long inventory age combine with the condition of products, and analyzed whether inventory falling price reserves was sufficient; (5) For the products that can obtain the selling price in open market, select samples, independently query the public market price information and compare it with the estimated selling price.。 |
4. Other information
The management of SZCH Company (hereinafter referred to as the management) is responsible for otherinformation which includes the information covered in the Company’s 2021 annual report excluding the financialstatement and our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do notissue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shallconsider whether other information differs materially from the financial statements or that we understand duringour audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in otherinformation. In this regards, we have nothing to report.
5. Responsibilities of management and those charged with governance for the financial statementsThe management of SZCH Company is responsible for the preparation of the financial statements in accordancewith the Accounting Standards for Enterprise to secure a fair presentation, and for the design, establishment andmaintenance of the internal control necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern (if applicable), disclosing matters related to going concern and using the goingconcern assumption unless the management either intends to liquidate the Company or to cease operations, or hasno realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
6. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(iv) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(v) Evaluate the overall presentation, including the disclosures, structure and content of the financial statementsand whether the financial statements represent the underlying transactions and events in a manner that achievesfair presentation.
(vi) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and relevant countermeasures (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor’s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
BDO China Shu Lun Pan CPAs Chinese CPA:Qi Tao(LLP) (Engagement partner)
Chinese CPA: Tao Guoheng
Shanghai· China 24 April 2022
II. Financial StatementStatement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN CEREALS HOLDINGS CO., LTD.
Unit: RMB/CNY
Item | December 31, 2021 | December 31, 2020 |
Current assets: |
Monetary funds | 50,409,923.65 | 190,494,225.94 |
Settlement provisions | ||
Capital lent | ||
Trading financial assets | 211,060,770.50 | 160,621,806.51 |
Derivative financial assets | ||
Note receivable | 687,242.00 | 2,213,426.00 |
Account receivable | 283,047,341.62 | 198,311,102.17 |
Receivable financing | ||
Accounts paid in advance | 115,894,774.61 | 27,136,263.84 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 32,377,838.35 | 22,631,043.66 |
Including: Interest receivable | ||
Dividend receivable | ||
Buying back the sale of financial assets | ||
Inventories | 3,460,618,674.81 | 3,418,328,974.27 |
Contract assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 88,457,984.90 | 119,750,603.31 |
Total current assets | 4,242,554,550.44 | 4,139,487,445.70 |
Non-current assets: | ||
Loans and payments on behalf | ||
Debt investment | ||
Other debt investment | ||
Long-term account receivable | ||
Long-term equity investment | 73,490,443.49 | 73,215,147.84 |
Investment in other equity instrument | ||
Other non-current financial assets | 57,500.00 | 57,500.00 |
Investment real estate | 233,096,698.49 | 253,037,899.57 |
Fixed assets | 2,127,831,149.19 | 1,122,692,490.55 |
Construction in progress | 207,946,539.97 | 1,045,643,295.57 |
Productive biological asset | 378,001.80 | 387,694.20 |
Oil and gas asset | ||
Right-of-use assets | 97,648,674.06 | |
Intangible assets | 609,405,194.82 | 599,306,223.04 |
Expense on Research and Development | ||
Goodwill | 1,953,790.56 | |
Long-term expenses to be apportioned | 28,795,206.45 | 31,732,325.01 |
Deferred income tax asset | 40,529,425.47 | 41,347,952.12 |
Other non-current asset | 5,931,731.58 | 2,476,174.33 |
Total non-current asset | 3,427,064,355.88 | 3,169,896,702.23 |
Total assets | 7,669,618,906.32 | 7,309,384,147.93 |
Current liabilities: | ||
Short-term loans | 504,766,782.25 | 110,318,727.12 |
Loan from central bank | ||
Capital borrowed | ||
Trading financial liability | ||
Derivative financial liability | ||
Note payable | ||
Account payable | 426,906,669.71 | 480,896,517.64 |
Accounts received in advance | 2,379,891.67 | 3,376,262.66 |
Contract liability | 182,972,314.85 | 108,975,866.82 |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 320,706,055.47 | 260,514,559.66 |
Taxes payable | 86,813,588.15 | 66,904,735.29 |
Other account payable | 376,607,198.99 | 397,325,719.50 |
Including: Interest payable | ||
Dividend payable | 2,933,690.04 | 2,933,690.04 |
Commission charge and commission payable | ||
Reinsurance payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | 128,732,475.16 | 104,225,183.07 |
Other current liabilities | 4,367,576.91 | 7,250,420.68 |
Total current liabilities | 2,034,252,553.16 | 1,539,787,992.44 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | 730,521,692.22 | 841,864,531.75 |
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | 80,173,743.75 | |
Long-term account payable | 17,266,921.98 | 16,126,146.20 |
Long-term wages payable | ||
Accrual liability | 3,500,000.00 | 3,500,000.00 |
Deferred income | 93,129,536.68 | 100,710,038.32 |
Deferred income tax liabilities | 13,868,191.82 | 12,150,035.13 |
Other non-current liabilities | ||
Total non-current liabilities | 938,460,086.45 | 974,350,751.40 |
Total liabilities | 2,972,712,639.61 | 2,514,138,743.84 |
Owner’s equity: | ||
Share capital | 1,152,535,254.00 | 1,152,535,254.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 1,259,639,656.65 | 1,422,892,729.36 |
Less: Inventory shares | ||
Other comprehensive income |
Reasonable reserve | ||
Surplus public reserve | 405,575,490.42 | 382,367,575.37 |
Provision of general risk | ||
Retained profit | 1,812,541,701.27 | 1,637,536,441.03 |
Total owner’ s equity attributable to parent company | 4,630,292,102.34 | 4,595,331,999.76 |
Minority interests | 66,614,164.37 | 199,913,404.33 |
Total owner’ s equity | 4,696,906,266.71 | 4,795,245,404.09 |
Total liabilities and owner’ s equity | 7,669,618,906.32 | 7,309,384,147.93 |
Legal Representative: Zhu JunmingPerson in charge of accounting works: Lu YuhePerson in charge of accounting institute: Wen Jieyu
2. Balance Sheet of Parent Company
Unit: RMB/CNY
Item | December 31, 2021 | December 31, 2020 |
Current assets: | ||
Monetary funds | 2,264,388.89 | 5,312,806.71 |
Trading financial assets | 181,047,789.68 | 621,806.51 |
Derivative financial assets | ||
Note receivable | ||
Account receivable | 135,678,426.30 | 4,087,681.18 |
Receivable financing | ||
Accounts paid in advance | ||
Other account receivable | 983,939,717.84 | 892,105,968.23 |
Including: Interest receivable | ||
Dividend receivable | 540,000,000.00 | 390,000,000.00 |
Inventories | ||
Contract assets | ||
Assets held for sale | ||
Non-current assets maturing within one year |
Other current assets | 1,083,482.32 | 1,497,597.50 |
Total current assets | 1,304,013,805.03 | 903,625,860.13 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term equity investments | 4,048,519,425.09 | 3,707,714,425.09 |
Investment in other equity instrument | ||
Other non-current financial assets | ||
Investment real estate | 16,514,913.76 | 16,986,504.04 |
Fixed assets | 32,097,138.18 | 33,125,275.65 |
Construction in progress | 239,282.75 | |
Productive biological assets | 378,001.80 | 387,694.20 |
Oil and natural gas assets | ||
Right-of-use assets | ||
Intangible assets | 19,338,264.04 | 12,842,693.98 |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | 1,538,731.98 | 1,040,708.20 |
Deferred income tax assets | ||
Other non-current assets | 4,602,630.58 | |
Total non-current assets | 4,123,228,388.18 | 3,772,097,301.16 |
Total assets | 5,427,242,193.21 | 4,675,723,161.29 |
Current liabilities: | ||
Short-term borrowings | 28,175,026.24 | |
Trading financial liability | ||
Derivative financial liability | ||
Notes payable | ||
Account payable | ||
Accounts received in advance | ||
Contract liability | 411.00 | |
Wage payable | 29,472,163.62 | 26,535,794.31 |
Taxes payable | 2,801,612.80 | 2,736,075.65 |
Other accounts payable | 764,330,925.37 | 45,560,514.82 |
Including: Interest payable | ||
Dividend payable | 2,933,690.04 | 2,933,690.04 |
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | ||
Total current liabilities | 824,779,728.03 | 74,832,795.78 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | ||
Long-term account payable | ||
Long term employee compensation payable | ||
Accrued liabilities | 3,500,000.00 | 3,500,000.00 |
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 3,500,000.00 | 3,500,000.00 |
Total liabilities | 828,279,728.03 | 78,332,795.78 |
Owners’ equity: | ||
Share capital | 1,152,535,254.00 | 1,152,535,254.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 3,018,106,568.27 | 3,018,106,568.27 |
Less: Inventory shares | ||
Other comprehensive income | ||
Special reserve | ||
Surplus reserve | 133,171,062.28 | 109,963,147.23 |
Retained profit | 295,149,580.63 | 316,785,396.01 |
Total owner’s equity | 4,598,962,465.18 | 4,597,390,365.51 |
Total liabilities and owner’s equity | 5,427,242,193.21 | 4,675,723,161.29 |
3. Consolidated Profit Statement
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Total operating income | 10,139,563,710.11 | 11,884,527,506.34 |
Including: Operating income | 10,139,563,710.11 | 11,884,527,506.34 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 9,504,004,530.36 | 11,255,304,140.15 |
Including: Operating cost | 8,859,285,309.43 | 10,725,012,933.34 |
Interest expense | ||
Commission charge and commission expense | ||
Cash surrender value | ||
Net amount of expense of compensation | ||
Net amount of withdrawal of insurance contract reserve | ||
Bonus expense of guarantee slip | ||
Reinsurance expense | ||
Tax and extras | 16,709,081.11 | 12,377,202.41 |
Sales expense | 250,216,473.67 | 201,304,842.30 |
Administrative expense | 300,735,585.34 | 285,083,453.91 |
R&D expense | 20,689,494.13 | 16,617,944.25 |
Financial expense | 56,368,586.68 | 14,907,763.94 |
Including: Interest expenses | 57,185,980.70 | 16,958,179.81 |
Interest income | 2,369,604.37 | 3,529,030.44 |
Add: Other income | 15,739,392.31 | 18,615,426.79 |
Investment income (Loss is listed with “-”) | 4,289,604.50 | 17,401,645.38 |
Including: Investment income on affiliated company and joint venture | 275,295.65 | 2,065,265.42 |
The termination of income recognition for financial assets measured by amortized cost | ||
Exchange income (Loss is listed with “-”) | ||
Net exposure hedging income (Loss is listed with “-”) | ||
Income from change of fair value (Loss is listed with “-”) | 299,292.76 | -544,403.21 |
Loss of credit impairment (Loss is listed with “-”) | 2,154,887.55 | 1,012,688.03 |
Losses of devaluation of asset (Loss is listed with “-”) | -184,486,526.84 | -210,190,362.81 |
Income from assets disposal (Loss is listed with “-”) | 29,437,150.82 | -47,312.84 |
III. Operating profit (Loss is listed with “-”) | 502,992,980.85 | 455,471,047.53 |
Add: Non-operating income | 14,640,665.53 | 3,925,937.84 |
Less: Non-operating expense | 1,505,363.93 | 1,554,552.82 |
IV. Total profit (Loss is listed with “-”) | 516,128,282.45 | 457,842,432.55 |
Less: Income tax expense | 79,817,640.62 | 54,070,586.10 |
V. Net profit (Net loss is listed with “-”) | 436,310,641.83 | 403,771,846.45 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with ‘-”) | 436,310,641.83 | 403,771,846.45 |
2.termination of net profit (net loss listed with ‘-”) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner’s of parent company | 428,720,226.09 | 405,088,385.54 |
2.Minority shareholders’ gains and losses | 7,590,415.74 | -1,316,539.09 |
VI. Net after-tax of other comprehensive income | ||
Net after-tax of other comprehensive income attributable to owners of parent company | ||
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income | ||
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
Net after-tax of other comprehensive income attributable to minority |
shareholders | ||
VII. Total comprehensive income | 436,310,641.83 | 403,771,846.45 |
Total comprehensive income attributable to owners of parent Company | 428,720,226.09 | 405,088,385.54 |
Total comprehensive income attributable to minority shareholders | 7,590,415.74 | -1,316,539.09 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | 0.3720 | 0.3515 |
(ii) Diluted earnings per share | 0.3720 | 0.3515 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last period.Legal Representative: Zhu JunmingPerson in charge of accounting works: Lu YuhePerson in charge of accounting institute: Wen Jieyu
4. Profit Statement of Parent Company
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Operating income | 152,755,423.01 | 6,787,646.23 |
Less: Operating cost | 471,590.28 | 3,407,360.30 |
Taxes and surcharge | 683,515.34 | 342,277.58 |
Sales expenses | 1,557.53 | |
Administration expenses | 67,332,547.72 | 69,040,444.78 |
R&D expenses | ||
Financial expenses | 3,532,095.48 | -299,837.13 |
Including: Interest expenses | 4,179,277.98 | |
Interest income | 702,381.08 | 363,508.65 |
Add: Other income | 194,374.00 | 1,153,678.06 |
Investment income (Loss is listed with “-”) | 151,392,969.32 | 393,154,397.74 |
Including: Investment income on affiliated Company and |
joint venture | ||
The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
Net exposure hedging income (Loss is listed with “-”) | ||
Changing income of fair value (Loss is listed with “-”) | 299,292.76 | -544,403.21 |
Loss of credit impairment (Loss is listed with “-”) | -393,159.80 | -468,842.76 |
Losses of devaluation of asset (Loss is listed with “-”) | -5,500,000.00 | |
Income on disposal of assets (Loss is listed with “-”) | -27,216.57 | |
II. Operating profit (Loss is listed with “-”) | 232,229,150.47 | 322,063,456.43 |
Add: Non-operating income | 417,499.86 | |
Less: Non-operating expense | 150,000.00 | 681,213.11 |
III. Total Profit (Loss is listed with “-”) | 232,079,150.47 | 321,799,743.18 |
Less: Income tax | ||
IV. Net profit (Net loss is listed with “-”) | 232,079,150.47 | 321,799,743.18 |
(i) continuous operating net profit (net loss listed with ‘-”) | 232,079,150.47 | 321,799,743.18 |
(ii) termination of net profit (net loss listed with ‘-”) | ||
V. Net after-tax of other comprehensive income | ||
(i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1.Changes of the defined benefit plans that re-measured | ||
2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
3.Change of fair value of |
investment in other equity instrument | ||
4.Fair value change of enterprise's credit risk | ||
5. Other | ||
(ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1.Other comprehensive income under equity method that can transfer to gain/loss | ||
2.Change of fair value of other debt investment | ||
3.Amount of financial assets re-classify to other comprehensive income | ||
4.Credit impairment provision for other debt investment | ||
5.Cash flow hedging reserve | ||
6.Translation differences arising on translation of foreign currency financial statements | ||
7.Other | ||
VI. Total comprehensive income | 232,079,150.47 | 321,799,743.18 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 10,872,515,643.46 | 11,286,443,589.59 |
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 | 45,244,428.95 | 21,596,382.78 |
Other cash received concerning operating activities | 479,459,925.25 | 361,167,179.98 |
Subtotal of cash inflow arising from operating activities | 11,397,219,997.66 | 11,669,207,152.35 |
Cash paid for purchasing commodities and receiving labor service | 9,852,107,611.52 | 10,694,549,697.89 |
Net increase of customer loans and advances | ||
Net increase of deposits in central bank and interbank | ||
Cash paid for original insurance contract compensation | ||
Net increase of capital lent | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 300,172,388.98 | 260,761,173.53 |
Taxes paid | 169,922,331.66 | 75,567,816.93 |
Other cash paid concerning operating activities | 634,621,635.96 | 351,800,241.73 |
Subtotal of cash outflow arising from operating activities | 10,956,823,968.12 | 11,382,678,930.08 |
Net cash flows arising from operating activities | 440,396,029.54 | 286,528,222.27 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 470,050,000.00 | 874,500,000.00 |
Cash received from investment income | 3,814,981.00 | 13,047,809.64 |
Net cash received from disposal of fixed, intangible and other long-term assets | 43,950,678.81 | 39,017.83 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | 337,500.00 | |
Subtotal of cash inflow from investing activities | 517,815,659.81 | 887,924,327.47 |
Cash paid for purchasing fixed, intangible and other long-term assets | 203,585,664.63 | 330,306,167.83 |
Cash paid for investment | 841,680,000.00 | 655,000,000.00 |
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units obtained | 16,512,205.96 | |
Other cash paid concerning investing activities | 6,600.00 | |
Subtotal of cash outflow from investing activities | 1,061,777,870.59 | 985,312,767.83 |
Net cash flows arising from investing activities | -543,962,210.78 | -97,388,440.36 |
III. Cash flows arising from financing activities: | ||
Cash received from absorbing investment | 2,401,000.00 |
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 2,401,000.00 | |
Cash received from loans | 3,189,591,562.34 | 1,252,948,640.66 |
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 3,191,992,562.34 | 1,252,948,640.66 |
Cash paid for settling debts | 2,907,274,264.53 | 1,125,297,927.31 |
Cash paid for dividend and profit distributing or interest paying | 301,598,845.09 | 281,115,923.63 |
Including: Dividend and profit of minority shareholder paid by subsidiaries | 3,811,557.09 | |
Other cash paid concerning financing activities | 20,527,342.78 | 58,702.23 |
Subtotal of cash outflow from financing activities | 3,229,400,452.40 | 1,406,472,553.17 |
Net cash flows arising from financing activities | -37,407,890.06 | -153,523,912.51 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -150,074.44 | -76,401.31 |
V. Net increase of cash and cash equivalents | -141,124,145.74 | 35,539,468.09 |
Add: Balance of cash and cash equivalents at the period -begin | 190,494,225.94 | 154,954,757.85 |
VI. Balance of cash and cash equivalents at the period -end | 49,370,080.20 | 190,494,225.94 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item | 2021 | 2020 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 137,263,979.66 | 3,366,464.12 |
Write-back of tax received | 1,637,543.02 | 103,987.33 |
Other cash received concerning operating activities | 1,956,978,556.11 | 341,811,436.11 |
Subtotal of cash inflow arising from operating activities | 2,095,880,078.79 | 345,281,887.56 |
Cash paid for purchasing commodities and receiving labor service | 45,095,000.00 | 76,108.23 |
Cash paid to/for staff and workers | 54,555,323.35 | 40,060,609.61 |
Taxes paid | 7,083,053.22 | 9,318,111.37 |
Other cash paid concerning operating activities | 1,252,879,663.51 | 330,103,954.85 |
Subtotal of cash outflow arising from operating activities | 1,359,613,040.08 | 379,558,784.06 |
Net cash flows arising from operating activities | 736,267,038.71 | -34,276,896.50 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 122,550,000.00 | 14,500,000.00 |
Cash received from investment income | 815,223.96 | 260,865,827.42 |
Net cash received from disposal of fixed, intangible and other long-term assets | 2,703.87 | |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | 337,500.00 | |
Subtotal of cash inflow from investing activities | 123,365,223.96 | 275,706,031.29 |
Cash paid for purchasing fixed, intangible and other long-term assets | 12,812,134.53 | 11,789,428.69 |
Cash paid for investment | 643,355,000.00 | 10,000,000.00 |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning |
investing activities | ||
Subtotal of cash outflow from investing activities | 656,167,134.53 | 21,789,428.69 |
Net cash flows arising from investing activities | -532,801,910.57 | 253,916,602.60 |
III. Cash flows arising from financing activities: | ||
Cash received from absorbing investment | ||
Cash received from loans | 757,196,852.36 | |
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 757,196,852.36 | |
Cash paid for settling debts | 729,024,633.14 | |
Cash paid for dividend and profit distributing or interest paying | 234,673,618.10 | 230,507,050.80 |
Other cash paid concerning financing activities | 58,702.23 | |
Subtotal of cash outflow from financing activities | 963,698,251.24 | 230,565,753.03 |
Net cash flows arising from financing activities | -206,501,398.88 | -230,565,753.03 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -12,147.08 | -33,541.26 |
V. Net increase of cash and cash equivalents | -3,048,417.82 | -10,959,588.19 |
Add: Balance of cash and cash equivalents at the period -begin | 5,312,806.71 | 16,272,394.90 |
VI. Balance of cash and cash equivalents at the period -end | 2,264,388.89 | 5,312,806.71 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
Unit: RMB/CNY
Item | 2021 | ||
Owners’ equity attributable to the parent Company | Min | Tota |
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | ority interests | l owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. The ending balance of the previous year | 1,152,535,254.00 | 1,422,892,729.36 | 382,367,575.37 | 1,637,536,441.03 | 4,595,331,999.76 | 199,913,404.33 | 4,795,245,404.09 | ||||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. The beginning balance of the current year | 1,152,535,254.00 | 1,422,892,729.36 | 382,367,575.37 | 1,637,536,441.03 | 4,595,331,999.76 | 199,913,404.33 | 4,795,245,404.09 | ||||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | -163,253,072.71 | 23,207,915.05 | 175,005,260.24 | 34,960,102.58 | -133,299,239.96 | -98,339,137.38 | |||||||||
(i) Total comprehensiv | 428,720, | 428,720, | 7,590,41 | 436,310, |
e income | 226.09 | 226.09 | 5.74 | 641.83 | |||||||||||
(ii) Owners’ devoted and decreased capital | -163,253,072.71 | -163,253,072.71 | -137,078,098.61 | -300,331,171.32 | |||||||||||
1.Common shares invested by shareholders | 21,348,828.68 | 21,348,828.68 | |||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
4. Other | -163,253,072.71 | -163,253,072.71 | -158,426,927.29 | -321,680,000.00 | |||||||||||
(iii) Profit distribution | 23,207,915.05 | -253,714,965.85 | -230,507,050.80 | -3,811,557.09 | -234,318,607.89 | ||||||||||
1. Withdrawal of surplus reserves | 23,207,915.05 | -23,207,915.05 | |||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | -230,507,050.80 | -230,507,050.80 | -3,811,557.09 | -234,318,607.89 |
4. Other | |||||||||||||||
(iv) Carrying forward internal owners’ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(v) Reasonable reserve | |||||||||||||||
1. Withdrawal in the report period | 1,283,502.97 | 1,283,502.97 | 1,283,502.97 | ||||||||||||
2. Usage in the report period | 1,283,502.97 | 1,283,502.97 | 1,283,502.97 |
(vi) Others | |||||||||||||||
VI. Balance at the end of the period | 1,152,535,254.00 | 1,259,639,656.65 | 405,575,490.42 | 1,812,541,701.27 | 4,630,292,102.34 | 66,614,164.37 | 4,696,906,266.71 |
Last period
Unit: RMB/CNY
Item | 2020 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. The ending balance of the previous year | 1,152,535,254.00 | 1,422,892,729.36 | 522.55 | 350,187,601.06 | 1,495,135,080.60 | 4,420,751,187.57 | 202,686,943.42 | 4,623,438,130.99 | |||||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period | |||||||||||||||
Enterprise combine |
under the same control | |||||||||||||||
Other | |||||||||||||||
II. The beginning balance of the current year | 1,152,535,254.00 | 1,422,892,729.36 | 522.55 | 350,187,601.06 | 1,495,135,080.60 | 4,420,751,187.57 | 202,686,943.42 | 4,623,438,130.99 | |||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | -522.55 | 32,179,974.31 | 142,401,360.43 | 174,580,812.19 | -2,773,539.09 | 171,807,273.10 | |||||||||
(i) Total comprehensive income | 405,088,385.54 | 405,088,385.54 | -1,316,539.09 | 403,771,846.45 | |||||||||||
(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 | 32,179,9 | -262,687, | -230,507 | -1,457,000 | -231,964,0 |
74.31 | 025.11 | ,050.80 | .00 | 50.80 | |||||||||||
1. Withdrawal of surplus reserves | 32,179,974.31 | -32,179,974.31 | |||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | -230,507,050.80 | -230,507,050.80 | -1,457,000.00 | -231,964,050.80 | |||||||||||
4. Other | |||||||||||||||
(iv) Carrying forward internal owners’ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4. Carry-over retained earnings from the defined |
benefit plans | |||||||||||||||
5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(v) Reasonable reserve | -522.55 | -522.55 | -522.55 | ||||||||||||
1. Withdrawal in the report period | 1,124,329.18 | 1,124,329.18 | 1,124,329.18 | ||||||||||||
2. Usage in the report period | 1,124,851.73 | 1,124,851.73 | 1,124,851.73 | ||||||||||||
(vi) Others | |||||||||||||||
VI. Balance at the end of the period | 1,152,535,254.00 | 1,422,892,729.36 | 382,367,575.37 | 1,637,536,441.03 | 4,595,331,999.76 | 199,913,404.33 | 4,795,245,404.09 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
Unit: RMB/CNY
Item | 2021 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. The ending balance of the | 1,152,535, | 3,018,106,56 | 109,963,147. | 316,785, | 4,597,390,365.51 |
previous year | 254.00 | 8.27 | 23 | 396.01 | ||||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. The beginning balance of the current year | 1,152,535,254.00 | 3,018,106,568.27 | 109,963,147.23 | 316,785,396.01 | 4,597,390,365.51 | |||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | 23,207,915.05 | -21,635,815.38 | 1,572,099.67 | |||||||||
(i) Total comprehensive income | 232,079,150.47 | 232,079,150.47 | ||||||||||
(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 | 23,207,915.05 | -253,714,965.85 | -230,507,050.80 | |||||||||
1. Withdrawal of surplus reserves | 23,207,915.05 | -23,207,915.05 | ||||||||||
2. Distribution for owners (or shareholders) | -230,507,050.80 | -230,507,050.80 | ||||||||||
3. Other | ||||||||||||
(iv) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve | ||||||||||||
4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
5. Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other |
(v) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | ||||||||||||
2. Usage in the report period | ||||||||||||
(vi) Others | ||||||||||||
VI. Balance at the end of the period | 1,152,535,254.00 | 3,018,106,568.27 | 133,171,062.28 | 295,149,580.63 | 4,598,962,465.18 |
Last period
Unit: RMB/CNY
Item | 2020 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | ||||||||||
I. The ending balance of the previous year | 1,152,535,254.00 | 3,018,106,568.27 | 77,783,172.92 | 257,672,677.94 | 4,506,097,673.13 | |||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. The beginning balance of the | 1,152,535,25 | 3,018,106,568.27 | 77,783,172.92 | 257,672,677.94 | 4,506,097,673.13 |
current year | 4.00 | |||||||||||
III. Increase/ Decrease in the period (Decrease is listed with “-”) | 32,179,974.31 | 59,112,718.07 | 91,292,692.38 | |||||||||
(i) Total comprehensive income | 321,799,743.18 | 321,799,743.18 | ||||||||||
(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 | 32,179,974.31 | -262,687,025.11 | -230,507,050.80 | |||||||||
1. Withdrawal of surplus reserves | 32,179,974.31 | -32,179,974.31 | ||||||||||
2. Distribution for owners (or | -230,507,050.80 | -230,507,050.80 |
shareholders) | ||||||||||||
3. Other | ||||||||||||
(iv) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve | ||||||||||||
4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
5. Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(v) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | ||||||||||||
2. Usage in |
the report period | ||||||||||||
(vi) Others | ||||||||||||
VI. Balance at the end of the period | 1,152,535,254.00 | 3,018,106,568.27 | 109,963,147.23 | 316,785,396.01 | 4,597,390,365.51 |
III. Basic information of Company
1. Company profile
Shenzhen Cereals Holdings Co., Ltd. (formerly the Shenzhen Shenbao Industrial Co., Ltd., hereinafter referred toas “SZCH”, “Company” or “the Company” ), formerly named Shenzhen Shenbao Canned Food Company,obtained approval (Document (1991) No.978) from Shenzhen Municipal People’s Government to change to thename as Shenzhen Shenbao Industrial Co., ltd. on 1 August 1991.Then with the approval (Document(1991)No.126) from People’s Bank of China, the Company began to list on Shenzhen Stock Exchange. TheCompany belongs to the grain, oil, food and beverage industry.
As of 31 December 2021, the cumulative amount of shares issued by the Company was 1,152,535,254 shares withregistered capital of 1,152,535,254.00 yuan. Registered address: Shenzhen, Guangdong Province; HQ of theCompany: 8/F, Tower B, No.4 Building, Software Industry Base, South District, Science & Technology Park,Xuefu Rd., Yuehai Street, Nanshan District, Shenzhen. Main business of the Company: general operating items:
Purchase and sales of grain and oil, grain & oil reserves; operation and processing of grain & oil products;production of tea, tea products, tea and natural plant extract, canned foods, beverages and native products(business license of the production place shall be separately applied for); feed management and processing(outsourcing); investment, operation and development of grain & oil logistics, feed logistics and tea garden etc.;sales of feed and tea; warehousing services; food circulation services; modern food supply chain services;technology development and services of grain & oil, tea, plant products, soft drinks and foods; construction ofE-commerce and information, IT development and supporting services; industrial investment (specific items willbe declared separately); domestic trade; operating the import and export business; engaged in real estatedevelopment and operation on the lands where the right-to-use has been legally acquired; development, operation,leasing and management of the own property; property management; providing management services tohotels.(items mentioned above which are involved in approval from national laws, administrative regulations anddecision of the state council, must be submitted for examination and approval before operation ). Licensedbusiness item: wholesale of prepackaged food (excluding reheating prepackaged food) (in non-physical way);information service (internet information service only); general freight, professional transportation (refrigerationand fresh-keeping).
Parent enterprise of the Company: Shenzhen Food Materials Group Co., Ltd; actual controller of the Company:
Assets Supervision and Administration Commission of Shenzhen municipal People’s Government.
The financial statement has been approved by BOD of the company for reporting on 24 April 2022.
2. Consolidate scope for the financial statement
Change of the consolidate scope in the Period found more in “Note VIII. Change of consolidate scope”Information with subsidiaries concerned found more in the “Note IX. Equity in other entity”
IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statement are prepared in line with the Accounting Standards for Business Enterprise -BasicStandard issued by Ministry of Finance and specific accounting principle as well as the application guidance forthe accounting principles for enterprise, interpretation to the accounting principles for enterprise and other relatedrequirements (hereinafter referred to as Accounting Standards for Business Enterprise), combining theInformation Disclosure Preparation Rules for Company Public Issuing Securities No.15-General Rules forFinancial Report of the CSRC
2. Going concern
The financial statement has been prepared on a going concern basis.
V. Major accounting policy, accounting estimation
1. Statement for observation of Accounting Standard for Business EnterpriseThe financial statements prepared by the Company are in accordance to requirements of Accounting Standard forBusiness Enterprise issued by Ministry of Finance, which truly and completely reflect the financial status of theCompany and parent company on 31 December 2021, as well as the consolidate and parent company’s operationalresults and cash flow for year of 2021.
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31December.
3. Operating cycle
Operating cycle of the Company was 12 months
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the samecontrolBusiness combination under the same control: The assets and liabilities the Company acquired in a businesscombination shall be measured in accordance with book value of assets, liabilities (including the ultimatecontrolling party of goodwill acquired by the merging parties and the formation of) stated in combined financialreport of the ultimate controlling party on the merger date. The net book value of assets and the payment of themerger consideration in the merger book value (or nominal value of shares issued) shall be adjusted in the sharepremium of reserve capital. the share premium in capital reserve is not enough for deducting, retained earnings .
Business combination not under the same control: Combination cost is the fair value of the assets paid, theliabilities incurred or assumed by the purchaser for the acquisition of the control of the purchaser and the equitysecurities issued on the purchase date. The difference between the fair value and book value is recognized in profitor loss. Goodwill is realized by the Company as for the difference between the combination cost and the fair valueof the recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that theabove cost is less than the above fair value even with re-review, then the difference shall be recorded in currentgains and losses. Each identifiable assets, liabilities and contingent liability of the acquiree acquired in acombination that qualifies for recognition is measured at fair value at the date of purchase.
The directed expenses incurred in the business combination are recorded into current gains/losses; the trading feesfor issuing equity securities or debt securities for the business combination shall be recorded into the initialconfirmation amount of equity securities or debt securities.
6. Methods for preparation of consolidated financial statements
Consolidated scopeThe consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,which includes the Company and all subsidiaries. Control means that the Company has power over the investee,enjoys variable returns through its participation in the investee’s related activities, and has the ability to influencethe amount of returns by using the power over the investee.
Consolidated procedure
The Company regards the entire enterprise group as an accounting entity and prepares consolidated financialstatements in accordance with unified accounting policies to reflect the overall financial status, operating resultsand cash flow of the enterprise group. The influence of internal transactions between the company and itssubsidiaries and among the subsidiaries shall be offset. If internal transactions indicate that the relevant assetshave suffered impairment losses, the partial losses shall be confirmed in full. If the accounting policy andaccounting period adopted by the subsidiary are inconsistent with the Company, when preparing the consolidatedfinancial statements, make necessary adjustments in accordance with the Company's accounting policy andaccounting period.
Subsidiary's equity, current net profits or losses and current comprehensive income belonging to minorityshareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet, item ofnet profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of asubsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation ofbalance, offset against minority interests.
(1) Increase of subsidiary or business
During the reporting period, the merger of the enterprises under the same control results in additional subsidiariesor business, the operation results and cash flow of the subsidiaries or business from beginning to the end of thereporting shall be included in the consolidated profit statement; also adjust the opening figures of the consolidatedfinancial statements and the related items in the comparative statements, the consolidated reporting body isconsidered to have existed since the point when the ultimate controller began to control it.
If additional investment and other reasons can lead investee to be controlled under the same control, equityinvestments made before obtaining controlling right, relevant gains and losses and other comprehensive income aswell as other changes in net assets confirmed during the latter date between point obtaining original equity andcombined party and combinee under the same control day to the combined day, shall be offset against the retainedearnings or profit or loss of the comparative reporting period.
During the reporting period, if a subsidiary or business is added due to a business combination not under the samecontrol, it shall be included in the consolidated financial statements on the basis of the fair value of variousidentifiable assets, liabilities and contingent liabilities determined on the purchase date.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additionalinvestment and other reasons can lead investee to be controlled under the same control. Difference between thefair value and the book value is recognized as investment income. Other comprehensive income and other changesin owner’s equity under the equity method of accounting that can be reclassified to profit or loss at a later date aretransferred to investment income for the period to which they belong at the date of purchase.
(2) Disposal of subsidiaries
① The general approach
If losing controlling right to investee due to disposal of partial equity, the remaining equity after the disposal shallbe re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of theremaining equity, then subtracting net assets held from the former subsidiary from the acquisition date orcombination date initially measured in accordance with original stake and goodwill, the difference shall beincluded in investment income of the period losing controlling right. Other comprehensive income and otherchanges in owner’s equity under the equity method of accounting related to equity investments in formersubsidiaries that can be reclassified to profit or loss in the future are transferred to investment income in thecurrent period when control is lost.
② Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right, if the terms of thetransaction, situation and economic impact subject to one or above of the following conditions, usually it indicatesrepeated transactions should be accounted for as a package deal:
i. These transactions are made considering at the same time or in the case of mutual impact;ii. These transactions only reach a complete business results when as a whole;iii. A transaction occurs depending on the occurrence of at least one other transaction;iv. Single transaction is not economical, but considered together with other transactions it is economical.If each transaction is a package transaction, each transaction is accounted for as a disposal of a subsidiary and lossof control; before the loss of control the difference between the disposal price and the corresponding net assets ofthe subsidiary, recognized as other comprehensive income in the consolidated financial statements, into currentprofit and loss at current period when losing controlling right.
If each transactions doesn’t form a package deal, equity held from subsidiary shall be accounted in accordancewith relevant rules before losing controlling right, while in accordance with general accounting treatment whenlosing controlling right.
(3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newlyacquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisitiondate (or combination date) initially measured between the consolidated balance sheet adjustment capital balanceof the share premium in the capital reserve share premium insufficient, any excess is adjusted to retained earnings.
(4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment due to partial disposal of subsidiaries and long-termequity investment made between the relative net assets from the purchase date or the date of merger were initiallymeasured at the difference between the subsidiary shall enjoy, the consolidated balance sheet adjustment in thebalance of the share premium, capital balance of the share premium insufficient, any excess is adjusted to retained
earnings.
7. Classification of joint venture arrangement and accounting for joint operationsThe joint venture arrangement are divided into joint operations and joint ventures.The joint operation, a joint venture arrangement in which the joint ventures enjoys the assets and bear the liabilities associated withthe arrangement.The Company recognized the following items related to its shares of interest in the joint operation:
(1) Recognition of the assets held separately by the Company, and recognition of the jointly held assets based on the share of theCompany;
(2) Recognition of the liabilities borne by the Company individually and liabilities borne jointly in proportion to the shares;
(3)Recognition of revenue from the sales of the shares of common operating output;
(4) Recognition of the revenue from joint operation arising from the sale of the output at the shares;
(5) Recognition of the separately incurred costs and recognition ot the expenses incurred in joint operations based on the shares;Investment in joint venture is accounted for using the equity method, found more in “V(22) Long-term equity investment”
8. Recognition standards for cash and cash equivalents
Cash refers to the cash on hand and cash equivalents of deposits that can be used for payment at any time. Cashequivalent refers to the investment held by the Company with short maturity and strong liquidity that are easy tobe converted into known amounts with little risk of change in cash value.
9. Foreign currency business and conversion of foreign currency statementForeign currency businessThe foreign currency business uses the spot exchange rate (or: using an exchange rate determined in accordancewith a systematic and reasonable method that approximates the spot rate on the date of the transaction. Tip: if themethod is used, what method and what caliber should be specified) on the transaction date as the conversion rate toconvert the foreign currency amount into RMB.
The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate onthe balance sheet date. The resulting exchange differences, except that the balance of exchange generated from theforeign currency special borrowings related to the assets whose acquisition and construction are eligible forcapitalization is disposed in accordance with the principle of borrowing costs capitalization, are included in thecurrent profit and loss.
Conversion of foreign currency financial statementsAssets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; exceptfor the “undistributed profit” item, other items of the owner's equity items are converted at the spot exchange rate at
the time of occurrence. Income and expense items in the income statement are converted at the spot exchange rate(or: using an exchange rate determined in accordance with a systematic and reasonable method that approximatesthe spot rate on the date of the transaction. Tip: if the method is used, what method and what caliber should bespecified)on the transaction date.
When disposing an overseas operation, the translation difference of the foreign currency financial statements relatedto the overseas operation is transferred from the owner's equity items to the disposal of the current profit and loss.
10. Financial instruments
The Company recognizes a financial assets, financial liabilities or equity instrument when it becomes a party to afinancial instrument contract.Categories of financial instrumentsAccording to the business model of managing financial assets and the contractual cash flow characteristics offinancial assets, at initial recognition, the Company classifies the financial assets into the financial assetsmeasured at amortized cost, the financial assets(debt instrument) measured at fair value and whose changes areincluded in other comprehensive income, and the financial assets measured at fair value and whose changes areincluded in current gain or loss.
The Company classifies the financial assets that meet the following conditions and are not designated to bemeasured at fair value and whose changes are recorded into the current gain/losses as financial assets measured atamortized cost:
- the business mode is aimed at collecting contractual cash flows;- contractual cash flows represent only payments of principal and interest based on the outstanding principalamount.
The Company classifies the financial assets (debt instruments) that meet the following conditions and are notspecified as measured at fair value and whose changes are recorded into the current gain/losses as financial assets(debt instruments) measured at fair value and whose changes are recorded into other comprehensive income:
- the business model is aimed at both the collection of contractual cash flows and the sales of the financialassets;- contractual cash flows represent only payments of principal and interest based on the outstanding principalamount.
For non-trading equity instrument investment, the Company determines whether it is designated as a financial asset(equity instrument) measured at fair value and whose changes are included in other comprehensive income at theinitial recognition. The designation is made on a single investment basis and the related investment meet the
definition of an equity instrument from an issuer’s perspective.
Except for the above-mentioned financial assets measured at amortized cost and at fair value with changesincluded in other comprehensive income, the Company classifies all other financial assets as financial assetsmeasured at fair value and with changes included in current profits and losses. At the time of initial recognition, ifaccounting mismatches can be eliminated or significantly reduced, the Company can irrevocably designate thefinancial assets that should be classified as financial assets measured at amortized cost or measured at fair valueand whose changes are included in other comprehensive income as the financial assets measured at fair value andwhose changes are included in the current profit and loss.
In the initial recognition, financial liabilities are classified as the financial liabilities measured at fair value andwhose changes are included in current profit and loss and the financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value and whose changes are included in current profit and loss in the initial measurement:
1) The designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategy specified in the official written document,manage and make performance evaluation of the financial liability portfolio or financial assets and financialliability portfolio based on fair value, and report to the key management personnel based on this.
3) The financial liability includes embedded derivatives that need to be separately split.
Recognition and measurement for financial instrument
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables,long-term receivables, and debt investment, which are initially measured at fair value, and related transaction costsare included in the initial recognition amount. The accounts receivable not including major financing componentsand the accounts receivable that the Company decides not to consider the financing component of not more than oneyear are initially measured at the contract transaction price.
Interest calculated by the effective interest method during the holding period is included in the current profit andloss.
When recovering or disposing, the difference between the price obtained and the book value of the financial asset isincluded in the current profit and loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive incomeFinancial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
income, including receivables financing, other debt investment, etc., are initially measured at fair value, and relatedtransaction expenses are included in the initial recognition amount. The financial assets are subsequently measuredat fair value, the changes in fair value are included in other comprehensive income except for interest, impairmentlosses or gains and exchange gains and losses calculated by using the effective interest method.
When a financial asset is terminated for recognition, the accumulated gain or loss previously included in othercomprehensive income is transferred from other comprehensive income and included in current profit and loss.
(3) Financial assets (equity instruments) measured at fair value and whose changes are included in othercomprehensive incomeFinancial assets (equity instruments) measured at fair value and whose changes are included in other comprehensiveincome, including other equity instruments, etc., are initially measured at fair value, and related transactionexpenses are included in the initially recognized amount. The financial assets are subsequently measured at fairvalue, and changes in fair value are included in other comprehensive income. The dividends obtained are included inthe current profits and losses.
When a financial asset is terminated for recognition, the accumulated gain or loss previously included in othercomprehensive income is transferred from other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value and whose changes are included in current profit and lossFinancial assets measured at fair value and whose changes are included in current profit and loss, includingTradable financial assets, derivative financial assets and other non-current financial assets, etc., are initiallymeasured at fair value, and related transaction expenses are included in the initial recognition amount. The financialassets are subsequently measured at fair value, and changes in fair value are recognized in current profit and loss.
(5) Financial liabilities measured at fair value and whose changes are included in current profit and lossFinancial liabilities measured at fair value and whose changes are included in current profit and loss, includingtransaction financial liabilities, derivative financial liabilities, etc., are initially measured at fair value, and relatedtransaction expenses are included in current profit and loss. The financial liabilities are subsequently measured atfair value, and changes in fair value are included in current profit and loss.
When a financial liability is terminate for recognition, the difference between book value and the considerationpaid shall be recorded into the current profit and loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost, including short-term borrowings, bills payable, accounts payable,other payable, long-term borrowings, bonds payable, and long-term payable, are initially measured at fair value, and
related transaction expenses are included in the initial recognition amount.
Interest calculated by the effective interest method during the holding period is included in the current profit andloss.
When a financial liability is terminate for recognition, the difference between the consideration paid and the bookvalue of the financial liability is included in current profit and loss.
Termination of recognition and transfer of financial assetsIf one of the following conditions is satisfied, the Company shall terminate the recognition of financial assets:
- the contractual rights to receive cash flows from financial assets terminates;- the financial asset has been transferred and virtually all the risks and rewards of the ownership of the financialasset have been transferred to the transferee;- the financial assets have been transferred. Although the company has neither transferred nor retained nearly allthe risks and rewards of ownership of the financial assets, it has not retained control of the financial assets
When transfer of financial assets occurs, if substantially all the risks and rewards of ownership of the financialasset are retained, the recognition of the financial asset shall not be terminated.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at fortransfer of financial assets, the Company generally adopts the principle that substance over weighs format.
The Company divides such transfer into entire transfer and part transfer. As for the entire transfer meetingcondition for discontinued recognition, balance between the following two items is recorded in current gains andlosses:
1) Carrying value of financial assets in transfer;
2) Aggregate of the consideration received from transfer and accumulative movements of fair value originallyrecorded in owners’ equity directly (applicable for the financial assets (debt instrument) measured at fair value andwhose changes are recorded into other comprehensive income)
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets intransfer is shared by discontinued recognition part and continued recognition part, in light of their respective fairvalue. Balance between the following two items is recorded in current gains and losses:
1) Carrying value of discontinued recognition part;
2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable toaccumulative movements of fair value originally recorded in owners’ equity directly (applicable when financial
assets involved in transfer belong to financial assets (debt instrument) measured at fair value and whose changesare included in other comprehensive income).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition fordiscontinued recognition. And consideration received is recognized as financial liability.
Terminating the recognition of financial liabilityAs for the financial liabilities with its whole or part present obligations released, the company shall terminate therecognition for such financial liabilities or part of it. if the company enters into agreement with its creditor tosubstitute for the existing financial liabilities by means of assuming new financial liabilities, then the companyshall terminate the recognition for the existing financial liabilities and recognized the new financial liabilitiesprovided that the contract clauses of the new and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financialliabilities, it shall terminate the recognition for the existing financial liabilities or part of it. Meanwhile, thefinancial liabilities with amendment to its clauses shall be realized as new financial liabilities.
In case of terminate the recognition of financial liabilities in whole or part, the difference between the carryingvalue of such financial liabilities and consideration paid (including the non-cash assets exchanged or newfinancial liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of thecontinuing recognition part and the derecognizing part, the company shall allocate the carrying value of thefinancial liabilities in whole on the repurchase date. Difference between the carrying value allocated to thederecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilitiesassumed) shall be recorded in current gains and losses.
Recognition method for fair value of financial assets and financial liabilitiesAs for the financial instrument with an active market, the fair value is determined by the offer of the active market;there is no active market for a financial instrument, the valuation techniques to determine its fair value. At thetime of valuation, the Company adopted applicable in the present case and there is enough available data andother information technology to support valuation, assets or liabilities of feature selection and market participantsin the trading of the underlying asset or liability considered consistent input value and priority as the relevantobservable inputs. Where relevant observable inputs can not get or do not get as far as practicable, the use ofun-observable inputs.
Testing of the financial assets impairment and accounting treatmentThe Company estimates the expected credit losses of financial assets measured at amortized cost, financial assets(debt instruments) measured at fair value and whose changes are included in other comprehensive income, and
financial guarantee contracts in a single or combined way.
The Company considers reasonable and well-founded information about past events, current conditions, andforecasts of future economic conditions, and uses the risk of default as the weight to calculate theprobability-weighted amount of the present value of the difference between the cash flow receivable from thecontract and the cash flow expected to be received to confirm the expected credit loss.
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Companymeasures its loss provision based on the amount equivalent to the expected credit losses for the entire duration of thefinancial instrument; if the credit risk of the financial instrument has not increased significantly since the initialrecognition, the Company measures its loss provision based on the amount equivalent to the expected credit lossesof the financial instrument in the next 12 months. The increase or reversal amount of the resulting loss provision isincluded in the current profit and loss as an impairment loss or gain.
The Company compares the risk of default on the balance sheet date of financial instruments with the risk ofdefault on the date of initial recognition to determine the relative change in the risk of default during the expectedlife of the financial instrument so as to assess whether the credit risk of the financial instrument has increasedsignificantly since the initial recognition. Usually, if it s overdue for more than 30 days, the Company shall believethat the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that thecredit risk of the financial instrument has not increased significantly since the initial recognition.
If the financial instrument's credit risk at the balance sheet date is low, the Company shall believe that the credit riskof the financial instrument has not increased significantly since the initial recognition.
If there is objective evidence that a financial asset has suffered credit impairment, the Company shall makeprovision for impairment of the financial asset on a single basis.
Regarding the accounts receivable and contract assets formed from transactions regulated by the "AccountingStandards for Business Enterprises No. 14-Revenue" (2017), regardless of whether it contains a significantfinancing component, the Company always measure its loss reserves at the amount equivalent to the expectedcredit loss during the entire duration.
For lease receivables, the Company always chooses to measure its loss reserves at an amount equivalent toexpected credit losses during the entire duration.
If the Company no longer reasonably expects whether the contractual cash flow of a financial asset can berecovered in whole or in part, it will directly write down the book balance of the financial asset.
11. Note receivable
12. Account receivable
13. Receivable financing
14. Other account receivable
15. Inventory
Classification and costs of inventoryInventory includes raw materials, revolving material, goods in process, goods in transit and work inprocess-outsourced and so on.Inventory is initially measured at cost, which includes the costs of purchase, processing costs and otherexpenditures incurred in bringing the inventories to their present location and condition.
Valuation methods for delivery of inventoryThe weighted average or individual valuation method is used when the inventory is issued according to the natureof the business.
Recognition standards of the net realizable value for inventoryOn the balance sheet date, inventories shall be measured at the lower of cost and net realizable value. When thecost of inventories is higher than its net realizable value, make provisions for inventory write-down. The netrealizable value refers to the amount of the estimated selling price of the inventory minus the estimated cost,estimated selling expenses and related taxes and fees at the time of completion in daily activities.
The net realizable value of inventory products and materials for sale, in normal business production, is measuredas the residual value after deducting the estimated sales expense and related taxes and fees from the estimatedselling price; the net realizable value of an item of inventories subject to further processing, in normal businessproduction, is measured as the residual value after deducting the sum of the estimated costs of completion, salesexpense and related taxes and fees from the estimated selling price of the for-sale item. The net realizable value ofthe quantity of inventories held to satisfy firm sales or service contracts is based on the contract price. If the salescontracts are for less than the inventory quantities held, the net realizable value of the excess is based on generalselling prices.
After making provisions for inventory write-down, if the factors that previously affected the write-down of theinventory value have disappeared, causing the net realizable value of the inventory to be higher than its bookvalue, it shall be reversed within the amount of the inventory write-down that has been withdrawn, and the
reversed amount is included in the current profit and loss.
Inventory systemInventory system is the perpetual inventory system.
Amortization of low-value consumables and packaging materials
(1) Low-value consumables adopts the method of primary resale;
(2) Wrappage adopts the method of primary resale.
16. Contract asset
Methods and criteria for recognition of a contract assetThe Company lists contract assets or contract liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The Company lists the right (and the right depends on otherfactors other than the passage of time) to receive consideration for the transfer of goods or services to customersas contract assets. Contract assets and contract liabilities under the same contract are presented in net amount. TheCompany's unconditional (only depending on the passage of time) right to collect consideration from customersare separately listed as receivables.
Determination method and accounting treatment method of expected credit loss of contract assetsFound more in the 10.6 Testing of the financial assets impairment and accounting treatment carried under V(10)Financial instrument
17. Contract cost
Contract cost includes contract performance cost and contract acquisition cost.The cost incurred by the Company for the performance of the contract does not fall within the scope of relevantstandards and norms such as inventory, fixed assets or intangible assets, and shall be recognized as an asset ascontract performance cost when the following conditions are met:
? The cost is directly related to a current or anticipated contract.? This cost increases the Company's resources for future performance obligations.? This cost is expected to be recovered.The incremental cost incurred by the Company to acquire the contract which is expected to be recovered shall berecognized as an asset as the contract acquisition cost.
Assets related to contract cost are amortized on the same basis as revenue recognition for the goods or servicesrelated to the assets; However, if the amortization period of the contract acquisition cost does not exceed one year,the Company shall record it into the profit and loss of the current period when it occurs. (Tip: for the contracts
with acquisition costs amortized over a period not exceeding one year, the Company may also choose torecognized an asset first, and amortized using the same basis as revenue recognition for the goods or servicesassociated with the assets. The enterprises should make disclosure according to the actual situation)
If the carrying value of the assets related to the contract cost is higher than the difference between the followingtwo items, the Company shall make an impairment provision for the excess part and recognize it as an assetimpairment loss:
(1) the remaining consideration expected to be obtained from the transfer of the goods or services related to theasset;
(2) the cost estimated to occur for the transfer of the relevant goods or services.If the said difference is higher than the book value of the asset due to the changes in the factors of impairment in theprevious period, the Company shall reverse the original provision for impairment which has been set aside andrecord it into the profits and losses of the current period, provided that the book value of the asset after beingreversed shall not exceed the book value of the asset on the date of reversal under the assumption that no impairmentprovision is set aside.
18. Assets held for sale
19. Creditors’ investment
20. Other creditors’ investment
21. Long-term account receivable
22. Long-term equity investment
Criteria for judgment of the common control and significant influenceCommon control refers to the control that is common to an arrangement in accordance with the relevantagreement, and the relevant activities of the arrangement must be agreed upon by the participants sharing thecontrol rights before making a decision. Where the Company and other joint venture parties jointly control theinvested entity and have rights to the net assets of the invested entity, the invested entity is the joint venture of theCompany.
Significant influence refers to the right to participate in making decisions relating to the financial and operationalpolicies of an enterprise, while not able to control or jointly control (with others) establishment of these policies.If the Company has significant influence on the invested enterprises, than such invested enterprises shall be thejoint venture of the Company.
Determination of initial investment cost
(1) Long-term equity investment formed by business combination
For a long-term equity investment in a subsidiary formed by a business combination under the same control, theinitial investment cost of the long-term equity investment is based on the share of the book value of the owner’sequity of the combined party obtained in the consolidated financial statements of the ultimate controlling party onthe combining date. The difference between the initial investment cost of long-term equity investment and thebook value of the consideration paid shall be used to adjust the equity premium in the capital reserve; when theequity premium in the capital reserve is insufficient to offset, adjust the retained earnings. If it is possible toexercise control over an investee under the same control due to additional investment, etc., adjust the equitypremium based on the difference between the initial investment cost of the long-term equity investment confirmedin accordance with the above principles and the book value of the long-term equity investment before thecombination plus the sum of the book value of the new valuable consideration for the shares obtained on thecombining date, if the equity premium is not enough to offset, offset the retained earnings.
For long-term equity investment in a subsidiaries formed by business combination not under the same control, theinitial investment cost is based on the cost of the combination determined at the date of purchase. If it is possibleto exercise control over an investee not under the same control due to additional investment, the sum of bookvalue of the equity investment originally held plus the cost of the additional investment is used as the initialinvestment cost.
(2) Long-term equity investment required by means other than business combination
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed asinitial investment cost.
For long-term equity investments obtained through issuance of equity securities, then the fair value of suchsecurities shall be viewed as initial investment cost
Subsequent measurement and recognition of gains and losses
(1) Long-term equity investment measured by cost
The long-term equity investment for subsidiary shall be measured by cost, unless the investment qualities as heldfor sale. Other than payment actually paid for obtaining investment or cash dividend or profit included inconsideration which has been declared while not granted yet, the Company recognizes investment incomeaccording to its share in the cash dividend or profit declared for grant by the invested unit.
(2) Long-term equity investment measured by equity
The Company calculates long term equity investment in associates and joint ventures under equity method. Wherethe initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.
Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable netassets at the time of acquisition, the difference is recognized in profit or loss for the period. And adjusted the costsof long-term equity investment at the same time.
Return on investments and other comprehensive income is recognized respectively by shares of net gains andlosses realized by the invested company and other comprehensive income, and book value of such investment isadjusted accordingly. Profit or cash dividends pro rata distributed by the invested company are to minus bookvalue of the relative long-term investment. Book value of long-term investment is adjusted when changes occurother than net gains and losses, other comprehensive income and profit distribution of the invested company(abbreviated as other changes of owners’ equity), and is to report in owners’ equity accordingly.
When confirming the share of the net profit and loss, other comprehensive income and other owner’s equitychanges that should be enjoyed by the investee, adjust the net profit and other comprehensive income of theinvestee based on the fair value of the investee’s identifiable net assets at the time when the investment is obtainedand in accordance with the company’s accounting policies and accounting period before confirmation.
The un-realized transaction gains/losses attributable to investment enterprise, internally occurred between theCompany, affiliated units and joint-ventures should calculated by proportion of shares-holding which should beoffset, than recognized investment gains/losses(except where the assets invested or sold constitute a business). Ifthe unrealized internal transaction losses with the investee are assets impairment losses, they will be fullyrecognized.
In addition to assuming obligations for additional losses, the company’s net losses to joint ventures or associatesare limited to the book value of long-term equity investments and other long-term equity that actually constitutesnet investment in joint ventures or associates write down to zero. If a joint venture or an associated enterpriserealizes net profits in the future, the company resumes recognizing its share of profits after the share of profitsmakes up for the share of unrecognized losses.
(3) Disposal of long-term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equityinvestment shall be included in current period gains and losses.
Long-term equity investment accounted for by equity methodFor long-term equity investments accounted for by partial disposition equity method, the remaining equity is stillaccounted for by the equity method, the other comprehensive income recognized by the original equity methodshall be carried forward in a corresponding proportion on the same basis as the direct disposal of related assets or
liabilities by the investee, other changes in owner's equity are carried forward to the current profit and loss on apro rata basis.
If the joint control or significant influence on the investee is lost due to the disposal of equity investment, for theother comprehensive income recognized by the original equity investment due to the adoption of the equitymethod, use the same basis as the investee to directly dispose of related assets or liabilities for accountingtreatment when terminating the adoption of the equity method, the same basis as the direct disposal of relatedassets or liabilities by the investee is used for accounting treatment, all other changes in owner's equity aretransferred to the current profit and loss when terminating the adoption of the equity method.
If the control of the investee is lost due to the disposal of part of the equity investment, and the remaining equitycan exercise joint control or exert significant influence on the investee when preparing individual financialstatements, the equity method shall be used for accounting and the remaining equity shall be deemed to beaccounted for by the equity method for adjustment since the acquisition, and the other comprehensive incomerecognized before obtaining the control of the investee is carried forward on the same basis as the direct disposalof related assets or liabilities by the investee in proportion, changes in other owners’ equity confirmed by theequity method are carried forward to the current profit and loss on a pro rata basis; if the remaining equity cannotexercise joint control or exert significant influence on the investee, it shall be recognized as a financial asset, andthe difference between its fair value and book value on the day when the control is lost is included in the currentprofit and loss, and all other comprehensive income and other owner's equity changes recognized before obtainingthe control of the investee are carried forward.
If the equity investment in a subsidiary is disposed of through multiple transactions until it loses control, and it isa package transaction, each transaction shall be accounted for as a transaction that disposes of the equityinvestment of the subsidiary and loses control. The difference between the cost of each disposal before the loss ofcontrol and the book value of the long-term equity investment corresponding to the equity being disposed of isfirst recognized as other comprehensive income in individual financial statements, and then transferred to thecurrent profit and loss of the loss of control when the control is lost. If it is not a package transaction, eachtransaction shall be accounted for separately.
23. Investment real estate
MeasurementMeasured by costDepreciation or amortization methodInvestment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,including the rented land use rights and the land use rights which are held and prepared for transfer afterappreciation, the rented buildings (including the buildings for rent after completion of self-construction or
development activities and the buildings under construction or development for future lease).
Subsequent expenditures related to investment real estate are included in the cost of investment real estate when itis probable that the related economic benefits will flow and the cost can be measured; otherwise, charged tocurrent gain/loss as incurred.
Current investment real estate of the Company are measured by cost. As for the investment real estate-rentalbuilding measured by cost, the depreciation policy is same as the fixed assets of the Company, the land use rightfor rental has the same amortization policy as intangible assets.
24. Fix assets
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providingservices, lease or for operation & management, and have more than one year of service life. Fixed assets should berecognized for qualified the followed conditions at the same time:
① It is probable that the economic benefits associated with the assets will flow into the Company;
② The cost of the assets can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected abandonment cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related economicbenefits are likely to flow in and their costs can be reliably measured; the book value of the replaced part isderecognized; all other subsequent expenditures are included in the current profit and loss when incurred.
(2)Depreciation methods
The Company provides for depreciation of fixed assets by category using the straight-line method, and determines the depreciationrate on the category, estimated useful life and estimated net residual value of fixed assets. For fixed assets with the provision forimpairment, the depreciation amount will be determined in the future based on the carrying amount after deduction of the provisionfor impairment and remaining useful life. Where individual component parts of an item of fixed asset have differentuseful lives or provide benefits to the enterprise in different manners thus necessitating use of differentdepreciation rates or methods, the depreciation of the fixed asset is respectively provided.
Depreciation methods, periods, residual value rate and annual depreciation rates of fixes assets are as follows
Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
House and buildings | Straight-line depreciation | |||
Production buildings | Straight-line depreciation | 20-35 | 5.00 | 2.71-4.75 |
Non-production buildings | Straight-line depreciation | 20-40 | 5.00 | 2.38-4.75 |
Temporary dormitory and simple room etc. | Straight-line depreciation | 5-15 | 5.00 | 6.33-19.00 |
Gas storage bin | Straight-line depreciation | 20 | 5.00 | 4.75 |
Silo | Straight-line depreciation | 50 | 5.00 | 1.90 |
Wharf and supporting facilities | Straight-line depreciation | 50 | 5.00 | 1.90 |
Machinery equipment | Straight-line depreciation | |||
Other machinery equipment | Straight-line depreciation | 10-20 | 5.00 | 4.75-9.50 |
Warehouse transmission equipment | Straight-line depreciation | 20 | 5.00 | 4.75 |
Transport equipment | Straight-line depreciation | 3-10 | 5.00 | 9.50-31.67 |
Electronic equipment and others | Straight-line depreciation | 2-10 | 5.00 | 9.50-47.50 |
(3) Recognition, measurement and depreciation of fixed assets held under finance lease
25. Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes construction cost,installation cost, borrowing costs that meet the capitalization conditions, and other necessary expendituresincurred before the construction in progress reaches its intended usable state. When the construction in progressreaches the intended usable state, it will be transferred to fixed assets and depreciation will be accrued from thenext month.
26. Borrowing expenses
Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying start to becapitalized and counted as relevant assets cost; other borrowing expenses, reckoned into current gains and lossesafter expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need along period of time to purchase, construct, or manufacturing before becoming usable.
Period of capitalizationCapitalizing period was from the time star capitalizing until the time of suspended capitalization. The period forborrowing expenses suspended excluded in the period.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interesttaken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,constructed or manufactured.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalizationreached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
Period of suspendedIf purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization issuspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspendedassets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usablestatus or for-sale status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurredduring the period of suspended shall reckon into current gains and losses until the purchasing, construction, ormanufacturing process is resumed for capitalizing.
Capitalization rate of the borrowing costs, measurement of the capitalized amountAs for the special loans borrowed for the purchase, construction or production of assets eligible for capitalization,the borrowing costs are capitalized by deducting the actual borrowing costs incurred in current period of specialborrowing, the interest income earned by borrowing funds that have not ye been used, deposited in the bank or theinvestment income obtained from the temporary investment.
For the general borrowings used for the acquisition, construction or production of assets eligible for capitalization,the amount of borrowing costs that should be capitalized for general borrowings is calculated and determinedaccording to the weighted average of the asset expenditures of accumulated asset expenditures over the special
borrowings multiplying by the capitalization rate of the occupied general borrowings. The capitalization rate isdetermined based on the weighted average interest rate of general borrowings.
During the capitalization period, the exchange difference of the principal and interest of the specialized foreigncurrency borrowing is capitalized and included in the cost of the assets that meet the capitalization conditions.Exchange differences arising from the principal and interest of foreign currency borrowings other than specializedforeign currency borrowing are included in the current profits and losses.
27. Biological assets
(1) The Company's biological assets are productive biological assets, which are classified into productive biologicalassets, consumptive biological assets and biological assets for commonweal according to the purpose of holdingand the way in which economic benefits are realized.
(2) Biological assets are initially measured at cost.
(3) The necessary expenditures incurred by productive biological assets before reaching the intended productionand operation purposes constitute the cost of the productive biological assets. Subsequent expenditures incurredafter achieving the intended production purposes shall be included in the current profit and loss.
(4) The necessary expenditures for consumptive biological assets before closure constitute the cost of consumptivebiological assets, and subsequent expenditures incurred after closure are included in the current profit and loss.The consumptive biological assets are carried at cost when harvested using the proportional method ofaccumulation.
(5) The Company’s biological assets are mainly tea trees. The company’s productive biological assets that achievethe intended production and operation purposes are depreciated according to the average service life method, andthe service life is determined as the remaining period of land use after deducting the immature tea tree period (5years), the residual value rate is 5%. At the end of each year, the company reviews the service life, expected netresidual value and depreciation methods. If the service life and expected net output value are different from theoriginal estimate, or there is a significant change in the realization of economic benefits, it will be used as anaccounting estimate change to adjust the service life or estimated net output value or change the depreciationmethod.
(6)Biological assets for commonweal refer to biological assets whose main purpose is protection andenvironmental protection, including wind-breaking and sand-fixing forests, soil and water conservation forests,and water conservation forests.
The cost of self-constructed biological assets for commonweal shall be determined in accordance with thenecessary expenditures such as cost of planting, tending fees, forest protection fees, forest culture and managementfacility fees, improved seed experiment fees, survey design fees, and indirect costs that should be apportionedbefore the closure, including borrowing costs that meet the conditions for capitalization.
Biological assets for commonweal are subsequently measured at cost. There is no need to withdraw the assetimpairment reserve for biological assets for commonweal.
(7)The balance of the disposal consideration from the sale, inventory loss, death or damage of biological assetsafter deducting the book value and relevant taxes shall be included in the current profit and loss.
28. Oil and gas assets
29. Right-of-use assets
30. Intangible assets
(1) Measurement, use of life and impairment testing
Measurement
(1)Initial measurement is made at cost when the Company acquires intangible assets;For those intangible assets purchased from outside, the purchase value, relevant taxes and other paymentsattributable to predicted purpose obtained should recognized as cost for this assets.
(2)Subsequent measurement
Analyzing and judging the service life of an intangible asset when they are acquired.Those intangible assets with limited useful life are evenly amortized on straight basis from the date when theybecome usable to the end of expected useful life;Intangible assets for which it is impossible to predict the termduring which the assets can bring in economic benefits are viewed as intangible assets with indefinite life withoutamortization.Estimation of the service life of intangible assets with limited service life
Item | Predicted useful life | Amortization method | Residual value rate | Basis |
Land use right
Land use right | Amortized the actual rest of life after certificate of land | Straight-line | 0.00% | Certificate of land |
use right obtained | method | use right |
Forest tree use right
Forest tree use right | Service life arranged | Straight-line method | 0.00% | Protocol agreement |
Trademark use right | 10-year | Straight-line method | 0.00% | Actual situation of the Company |
Shop management right | Service life arranged | Straight-line method | 0.00% | Protocol agreement |
Software use right | 5-8 years | Straight-line method | 0.00% | Protocol agreement |
Patents and others | 20-year | Straight-line method | 0.00% | Actual situation of the Company |
Judgment basis on intangible assets with uncertain service life and review procedures for the service lifeIntangible assets for which it is impossible to predict the term during which the assets can bring in economicbenefits are viewed as intangible assets with indefinite life. Intangible assets with indefinite life are not amortizedduring the holding period, and useful life is re-reviewed at the end of each accounting period. In case that it is stilldetermined as indefinite after such re-review, then impairment test will be conducted continuously in everyaccounting period.
(2)Accounting policy of the internal R&D expenditure
Specific criteria for dividing research and development stagesThe expenditure for internal R&D is divided into research expenditure and development expenditure.Research stage: stage of the investigation and research activities exercising innovative-ness for new science ortechnology knowledge obtained and understanding.Development stage: stage of the activities that produced new or material advance materials, devices and productsthat by research results or other knowledge adoption in certain plan or design before the commercial production orusage.
Standards for capitalization satisfaction of expenditure in development stateExpenditures in the research phase are included in the current profit and loss when they occur. Expenditures in thedevelopment phase that meet the following conditions at the same time are recognized as intangible assets, andexpenditures in the development phase that cannot meet the following conditions are included in the current profitand loss:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) Way of profit generated including: show evidence that the products generated from the intangible assets owesa market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
(5)The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.If it is not possible to distinguish between research stage expenditures and development stage expenditures, allresearch and development expenditures incurred are charged to current gain/loss.
31. Impairment of long term assets
The long-term assets as long-term equity investments, investment real estate measured at cost, fixed assets,construction in progress, right-of-use assets, intangible assets with certain service life and oil & gas assets aretested for impairment if there is any indication that an asset may be impaired at the balance date. If the result ofthe impairment test indicates that the recoverable amount of the asset is less than its carrying amount, a provisionfor impairment and an impairment loss are recognized for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell andthe present value of the future cash flows expected to be derived from the asset. Provision for asset impairment isdetermined and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount ofan individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A groupof assets is the smallest group of assets that is able to generate independent cash inflows.
For goodwill formed by business combination, intangible assets with uncertain service life, and intangible assetsthat have not yet reached the usable state, regardless of whether there are signs of impairment, impairment testshall be carried out at least at the end of each year.
When the Company conducts the goodwill impairment test, the book value of goodwill formed by businesscombination is apportioned to the relevant asset group according to reasonable methods from the date of purchase; ifit is difficult to apportion it to the relevant asset group, apportion it to the relevant asset group portfolio. Relevantasset group or assets portfolio is the asset group or combination of assets group that can benefit from the synergiesof the enterprise merger.
When conducting impairment test for relevant asset group with inclusion of goodwill, in case that there isindication of impairment for such asset group, impairment test would be firstly conducted in respect of the assetgroups without inclusion of goodwill. Then, it shall calculate the recoverable amount and determine thecorresponding impairment loss as compared to its carrying value. Then conduct an impairment test on the assetgroup or asset group portfolios containing goodwill, and compare their book value with the recoverable amount. Ifthe recoverable amount is lower than the book value, the amount of impairment loss first deducts the book valueof the goodwill allocated to the asset group or asset group portfolio, and then deducts the book value of the otherassets in proportion according to the proportion of the book value of the other assets other than goodwill in theasset group or asset group portfolio. Once recognized, asset impairment loss would not be reversed in futureaccounting period.
32. Long term prepaid expense
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in thecurrent and later periods with amortization period exceeding one year. Long-term prepaid expenses of theCompany includes expenditures on improvement of investment real estate, decoration fee and expenditure forfixed assets improvement etc. Long term prepaid expense is amortized during the beneficial period under straightline method.
33. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship betweenperformance obligations and customer payments. The Company's obligation to transfer goods or provide servicesto customers for consideration received or receivable from customers is listed as contract liabilities. Contractassets and contract liabilities under the same contract are presented in net amount.
34. Staff remuneration
(1)Accounting treatment of short term remuneration
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profitor loss or relevant assets costs.
Regarding to the social insurance and housing funds that the Company paid for employees, the Company shouldrecognize corresponding employees benefits payable according to the appropriation basis and proportion asstipulated by relevant requirements and recognize the corresponding liabilities.
The employee welfare expenses incurred shall be recorded into the current gain/loss or the cost of relevant assetsaccording to the actual amount when actually incurred, and the non-monetary welfare shall be measured at fairvalue.
(2)Accounting treatment for post employment benefits
Defined contribution planThe Company pays basic endowment insurance and unemployment insurance for employees according to therelevant regulations of the local government. In the accounting period in which employees provide services for theCompany, the amount to be paid is calculated according to the local payment base and proportion, and isrecognized as a liability and included in current profit and loss or related asset cost. In addition, the Company alsoparticipates in the enterprise annuity plan/supplementary pension insurance fund approved by the relevant statedepartments. The Company pays a certain percentage of the total wages of employees to the annuity plan/local
social insurance agency, and the corresponding expenditures are included in the current profit and loss or the costof related asset.
Defined benefit planThe Company assigns the benefit obligation arising from the defined benefit plan to the period during which theemployee provides service according to the formula determined by the expected accumulated benefit unit method,and includes it in the current profit and loss or related asset cost.
The deficit or surplus formed by the present value of the defined benefit plan obligation minus the fair value of thedefined benefit plan asset is recognized as a net benefit or net asset of the defined benefit plan. If there is a surplus inthe defined benefit plan, the Company measures the net assets of the defined benefit plan by the lower of the surplusand the asset limit of the defined benefit plan.
All defined benefit plan obligations, including obligations expected to be paid within twelve months of the end ofthe annual reporting period in which the employee provides services, are discounted based on the market return ofthe national debt matching with the defined benefit plan obligations deadline and currency or the high qualitycorporation bonds in an active market on the balance sheet date.
The service cost generated by the defined benefit plan and the net liabilities or the net interest of the net assets of thedefined benefit plan are included in the current profit and loss or the related assets cost; the changes generated by theremeasurement of net liabilities or net assets of the defined benefit plan are included in other comprehensive income,and will not be transferred back to profit or loss in the subsequent accounting period, when the original definedbenefit plan is terminated, the part that was originally included in other comprehensive income will be carriedforward to undistributed profit within the scope of equity.
When settling the defined benefit plan, the settlement gain or loss is confirmed by the difference between the presentvalue of the defined benefit plan obligation and the settlement price determined on the settlement date.
(3)Accounting treatment for dismissal benefit
If the Company provides dismissal benefits to employees, the employee compensation liabilities arising fromdismissal benefits shall be recognized on the earlier date of the following two, and shall be included in the currentprofit and loss: When the company cannot unilaterally withdraw the dismissal benefits provided by the dismissalplan or downsizing proposal; When the company confirms the costs or expenses related to the reorganizationinvolving the payment of dismissal benefits.
(4)Accounting treatment for other long term staff benefits
35. Lease liability
36. Accrual liability
The Company will recognize the obligations related to contingencies as expected liabilities when they meet thefollowing conditions:
(1)The responsibility is a current responsibility undertaken by the Company;
(2)Fulfilling of the responsibility may lead to financial benefit outflow;
(3)The responsibility can be measured reliably for its value.
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment ofcurrent responsibilities.
While determined the best estimation, take the risks, uncertainty and periodic value of currency that connected tothe contingent issues into consideration. For major influence from periodic value of currency, determined bestestimation after discount on future relevant cash out-flow.
Where there is a continuous range of required expenditures, and the probability of occurrence of various resultswithin this range is the same, the best estimate is determined according to the median value in the range; in othercases, the best estimate shall be treated as follows:
? If a contingency involves a single item, it shall be determined according to the amount most likely to occur.? If a contingency involves multiple items, it shall be determined in accordance with various possible outcomesand related probability calculation.
If all or part of the expenditure required to pay off the estimated liabilities is expected to be compensated by athird party, the compensation amount shall be separately recognized as an asset when it is basically certain that itcan be received, and the recognized compensation amount shall not exceed the book value of the estimatedliability.
The Company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusiveevidence that the book value does not reflect the current best estimate, the book value will be adjusted accordingto the current best estimate.
37.Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liabilities
determined based on equity instruments in order to obtain services from employees or other parties. TheCompany’s share-based payment is divided into equity-settled share-based payment and cash-settled share-basedpayment.Equity-settled share-based payments and equity instrumentsThe equity-settled share-based payment in exchange for services provided by employees shall be measured at thefair value of equity instruments granted to employees. For share-based payment transactions that can be exercisedimmediately after the grant, the fair value of the equity instrument is included in the relevant cost or expenses onthe grant date, and the capital reserve is increased accordingly. For share-based payment transactions that can beexercised only after completing the services during the waiting period or meeting the specified performanceconditions after the grant, on each balance sheet date during the waiting period, the Company shall include theservices obtained in the current period in the relevant cost or expenses based on the best estimate of the number ofviable equity instruments and the fair value on the grant date, and increase the capital reserve accordingly.If the terms of the equity-settled share-based payment are modified, at least the services acquired are recognizedas if the terms were not modified. In addition, any modification that increases the fair value of the granted equityinstruments, or a change in favor of the employee on the modification date, is recognized as an increase inservices received.During the waiting period, if the granted equity instrument is cancelled, the Company will treat the cancelledgranted equity instrument as an accelerated exercise, and immediately include the amount that should be recognizedduring the remaining waiting period in the current profit and loss, and recognize the capital reserve at the same time.However, if a new equity instrument is granted and it is determined that the new equity instrument granted is toreplace the cancelled equity instrument on the grant date of the new equity instrument, then in the same manner asthe modification of the terms and conditions of the original equity instrument, the granted alternative equityinstruments are processed.Cash-settled share-based payments and equity instrumentsThe cash-settled share-based payment shall be measured at the fair value of the liabilities calculated anddetermined on the basis of shares or other equity instruments undertaken by the Company. For share-basedpayment transactions that can be exercised immediately after the grant, the Company shall include them in therelevant cost or expenses at the fair value of the liabilities on the grant date, and increase the liabilities accordingly.For share-based payment transactions that can be exercised only after completing the service during the waitingperiod or meeting the specified performance conditions, on each balance sheet date during the waiting period, theCompany shall include the services obtained in the current period in the relevant cost or expenses based on thebest estimate of the viable equity instruments and the fair value of the liabilities undertaken by the Company, andinclude in the liabilities accordingly. On each balance sheet date and settlement date before the settlement ofrelevant liabilities, the fair value of the liabilities is re-measured, and the changes are included in the current profitand loss.
38. Other financial instrument of preferred stocks and perpetual bond
Disclosure requirements: Describe the accounting treatment of other financial instruments such as preferred stock
and perpetual bondThe Company categorizes a financial instrument or its components as a financial asset, a financial liability or anequity instrument at the time of initial recognition based on the contractual terms of preferred stocks/perpetualbonds issued and the economic substance it reflects, not just in legal form.
When a financial instrument such as perpetual bonds/preferred stocks issued by the Company meet one of thefollowing conditions, the entire financial instrument or its components shall be classified as a financial liability atthe time of initial recognition.
(1) There are contractual obligations that the Company cannot unconditionally avoid fulfilling with the cashpayment or other financial assets;
(2) Contains contractual obligation to deliver variable amounts of own equity instruments for settlement;
(3) Contains derivative instrument that is settled with its own equity (such as conversion of equity, etc.), and thederivative instrument is not settled with a fixed amount of their own equity instruments in exchange for a fixedamount of cash or other financial assets;
(4) There are contract clauses that indirectly form contract obligations;
(5) The perpetual bonds are in the same repayment order as the ordinary bonds and other debts issued by theissuer at the time of liquidation by the issuer.
For financial instruments such as perpetual bonds/preferred stocks that do not meet any of the above conditions,classify the financial instruments as a whole or their components as equity instruments at the time of initialrecognition.
39. Revenue
Accounting policy used for revenue recognition and measurement
The Company fulfills the performance obligations in the contract, that is, revenue is recognized when thecustomer obtains control of the relevant goods or services. Obtaining control of related goods or services meansbeing able to lead the use of the goods or services and obtain almost all of the economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transaction price toeach individual performance obligation in accordance with the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the starting date of the contract.The Company measures revenue based on the transaction price allocated to each individual performanceobligation.
The transaction price refers to the amount of consideration that the Company expects to be entitled to receive dueto the transfer of goods or services to customers, excluding payments collected on behalf of third parties and
payments expected to be returned to customers. The Company determines the transaction price in accordance withthe terms of the contract and combined with its past customary practices, when determining the transaction price,it considers the influence of variable consideration, major financing components in the contract, non-cashconsideration, consideration payable to customers and other factors. The Company determines the transactionprice that includes variable consideration at an amount that does not exceed the amount of accumulatedrecognized revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated. If thereis a significant financing component in the contract, the Company determines the transaction price based on theamount payable in cash when the customer obtains control of the goods or services, and uses the actual interestmethod to amortize the difference between the transaction price and the contract consideration during the contractperiod. (Tips: for the interval between the transfer of control and the payment of the price by the customer doesnot exceed one year, the enterprise may disregard the financing component thereof. Enterprise should makedisclosure according to the actual situation )
It belongs to the performance obligation fulfilled within a certain period of time when meeting one of thefollowing conditions, otherwise it belongs to the performance obligation fulfilled at a certain point in time:
?The customer obtains and consumes the economic benefits brought by the Company's performance at the sametime as the Company's performance.?Customers can control the products under construction in the Company's performance process.?The products produced by the Company during the performance of the contract have irreplaceable uses, and theCompany has the right to collect payment for the accumulated performance part of the contract during the entirecontract period.
For performance obligations performed within a certain period of time, the Company recognizes revenueaccording to the performance progress during that period, except where the performance progress cannot bereasonably determined. The Company considers the nature of the goods or services and adopts the output methodor the input method to determine the progress of performance. When the performance progress cannot bereasonably determined, and the costs incurred are expected to be compensated, the Company shall recognize therevenue according to the amount of the costs incurred until the performance progress can be reasonablydetermined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the pointwhen the customer obtains control of the relevant goods or services. When judging whether a customer hasobtained control of goods or services, the Company considers the following signs:
?The Company has the current right to collect payment for the goods or services, that is, the customer has thecurrent payment obligation for the goods or services.?The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legalownership of the goods.?The Company has transferred the goods to the customer in kind, that is, the customer has taken possession of thegoods in kind.?The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is,
the customer has obtained the main risks and rewards of the ownership of the goods.?The customer has accepted the goods or services, etc.
Specific principles
(1) Revenue from sales of goods: The realization of sales revenue is recognized after the domestic sales of goodshave been delivered and in compliance with the relevant terms of the contract; for export sales, the realization ofsales revenue is recognized after the goods have been delivered and declared to the customs and meet the relevantterms of the contract.
(2) Income from the provision of labor services: The Company provides the grain and oil dynamic reserve and itsrotation services for the Shenzhen Municipal Government, and the income is recognized when the relevant laboractivities occur. Operational Regulations" and "Shenzhen Edible Vegetable Oil Government Reserve ExpensesAll-inclusive Operational Regulations" shall be used to calculate and confirm the service income of grain and oilreserves.
(3) Other income:
1) The amount of income from royalties shall be calculated and determined according to the charging time andmethod stipulated in the relevant contracts or agreements.
2) Income from property leasing such as real estate, dock warehouses, and dock docking business shall becalculated and confirmed according to the charging time and method agreed in the contract or agreement.Differences in accounting policies of revenue recognition resulted by the different operating models for the same type of business
40. Government subsidy
TypesGovernments subsidy of the Company refer to the monetary and non-monetary assets obtained from governmentfor free, and are divided into those related to assets and others related to revenues.
Government subsidy related to assets refer to those obtained by the Company and used for purchase orconstruction of or otherwise to form long-term assets. Government subsidies related to revenue refer to thoseother than government subsidies related to assets.Specific criteria for classifying the government subsidy as asset-related by the Company are:
Specific criteria for classifying the government subsidy as income-related by the Company are:
For those government subsidies without object specified in government documents, the Company classifiesgovernment subsidies as asset-related or income-related based on the following judgment:
Disclosure requirement: disclose specific criteria for distinguishing between asset-related government subsidiesand income-related. If the government document does not specify the object of the subsidy, it must also state thebasis of judgment for classifying the government subsidy as asset-related or income-related
Recognition time pointIf there is evidence at the end of the period that the company can meet the relevant conditions stipulated by thefinancial support policy and is expected to receive financial support funds, the government subsidy shall be
recognized according to the amount receivable. In addition, government grants are recognized when they areactually received.
If the government grant is a monetary asset, it shall be measured according to the amount received or receivable.If the government grant is a non-monetary asset, it shall be measured at its fair value; if the fair value cannot beobtained reliably, it shall be measured at its nominal amount (RMB 1). Government subsidies measured at thenominal amount are directly included in the current profit and loss.Accounting treatmentBased on the essence of economic business, the company determines whether a certain type of governmentsubsidy business should be accounted for using the gross method or the net method. Normally, the company onlyselects one method for the same or similar government subsidy business, and uses that method consistently forthat business.
Category | Accounting content |
Types of government subsidies accounted for using the gross method | All government subsidies |
Government subsidy related to assets is used to offset the book value of related assets or be recognized as deferredincome. If it is confirmed as deferred income, it shall be included in the current profit and loss in a reasonable andsystematic way by stages within the useful life of the relevant assets (those related to the Company’s dailyactivities are included in other income; those unrelated to the Company’s daily activities are included in thenon-operating income);
Government subsidy related to income that is used to compensate the Company's related costs or losses insubsequent periods is recognized as deferred income, and is included in the current profit and loss during the periodwhen the related costs or losses are recognized (those related to the Company’s daily activities are included in otherincome; those unrelated to the Company’s daily activities are included in the non-operating income) or used tooffset related costs or losses; those used to compensate the Company’s related costs, expenses or losses are directlyincluded in the current profit and loss (those related to the Company’s daily activities are included in other income;those unrelated to the Company’s daily activities are included in the non-operating income) or used to offsetrelated costs or losses.
The policy-related preferential loan interest discounts obtained by the Company shall be accounted for separatelyin the following two situations:
(1)The finance allocates interest discount funds to the lending bank. If the lending bank provides loans to theCompany at a policy-based preferential interest rate, the Company will use the actually received loan amount asthe entry value of the loan, and calculate related borrowing costs according to the loan principal and thepolicy-based preferential interest rate.(Tips: Enterprises can also use the following methods for accounting treatment. If you choose to use the followingmethods, this paragraph should be changed to the following. In addition, the two methods should be used
consistently and should not be changed arbitrarily: (1) The finance will allocate the interest discount funds to theloan bank, and the loan bank provides loans to the Company at a policy-oriented preferential interest rate, theCompany takes the fair value of the loan as the entry value of the loan and calculates the borrowing costsaccording to the actual interest rate method. The difference between the actual amount received and the fair valueof the loan is recognized as deferred income, which is amortized using the effective interest rate method duringthe duration of the loan to offset relevant borrowing costs.)
(2) If the finance directly allocates interest discount funds to the Company, the Company will write down therelevant borrowing costs with the corresponding interest discount.
41. Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising from businessmergers and transactions or events that are directly included in owner's equity (including other comprehensiveincome), the Company include current income tax and deferred income tax in current profit and loss.
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on thedifference (temporary difference) between the tax base of assets and liabilities and their book value.
Deductible temporary differences recognized by deferred income tax assets is limited to the taxable income that islikely to be obtained in the future to deduct deductible temporary differences. For the deductible losses and taxdeductions that can be carried forward for subsequent years are limited to the future taxable income that is likelyto be obtained to deduct deductible and tax deductions.
For taxable temporary differences, except for special circumstances, deferred income tax liabilities are recognized.Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities include:
? Initial recognition of goodwill;? Transactions or events that neither are a business combination nor affect accounting profits and taxable income(or deductible losses) when occur.
For taxable temporary differences related to investments in subsidiaries, associates and joint ventures, deferredincome tax liabilities are recognized, unless the Company can control the timing of the reversal of the temporarydifferences and the temporary differences are not likely to be reversed in the foreseeable future. For deductibletemporary differences related to investments in subsidiaries, associates and joint ventures, when the temporarydifferences are likely to be reversed in the foreseeable future and are likely to be used to deduct the taxableincome of deductible temporary differences in the future, recognize deferred income tax assets.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at theapplicable tax rate during the period when the relevant assets are expected to be recovered or the relevant
liabilities are expected to be paid off in accordance with the provisions of the tax law.
On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable thatsufficient taxable income cannot be obtained in the future to offset the benefits of deferred income tax assets, thebook value of the deferred income tax assets shall be written down. When it is possible to obtain sufficient taxableincome, the write-down amount shall be reversed.
When there is a statutory right to settle on a net basis, and an intention to settle on a net basis or acquire assets andpay off liabilities at the same time, the current income tax assets and current income tax liabilities are presented atthe net amount after offsetting.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be listed as the netamount after offset when the following conditions are met at the same time:
? The tax subject has the statutory right to settle current income tax assets and current income tax liabilities on anet basis;?Income tax assets and deferred income tax liabilities are related to the income tax levied by the same taxadministration department on the same taxation subject or related to different taxation subjects, however, in theperiod during which each important deferred income tax asset and liability are reversed in the future, the taxpayerinvolved intends to settle the current income tax assets and liabilities on a net basis or obtain assets and settleliabilities at the same time.
42. Lease
Accounting treatment of operating leases
(1) Right-of-use assets
On the commencement date of the lease period, the Company recognizes right-of-use assets for leases other than short-term leasesand leases of low-value assets. Right-of-use assets are initially measured at cost. This cost includes:
The initial measurement amount of the lease liability;The lease payment amount paid on or before the start date of the lease period, if there is a lease incentive, deduct the relevant amountof the lease incentive already enjoyed;Initial direct expenses incurred by the company;The estimated costs incurred by the Company for dismantling and removing the leased assets, restoring the site where the leasedassets are located, or restoring the leased assets to the state agreed upon in the lease terms, but do not include the costs incurred forthe production of inventories.The Company subsequently adopts the straight-line method to depreciate the right-of-use assets. If it can be reasonably determinedthat the ownership of the leased asset will be obtained at the expiration of the lease term, the company shall accrue depreciationwithin the remaining useful life of the leased asset; otherwise, the leased asset shall be depreciated within the shorter of the leaseterm and the remaining useful life of the leased asset. .The company determines whether the right-of-use asset has been impaired in accordance with the principles described in Note III.
(20) Impairment of long-term assets, and performs accounting treatment on the identified impairment losses.
(2) Lease liabilities
On the commencement date of the lease term, the Company recognizes lease liabilities for leases other than short-term leases andleases of low-value assets. The lease liability is initially measured at the present value of outstanding lease payments. Leasepayments include:
Fixed payments (including actual fixed payments), if there is a lease incentive, deduct the relevant amount of the lease incentive;Variable lease payments that depend on an index or rate;The expected payment according to the residual value of the guarantee provided by the company;The exercise price of the purchase option, provided that the company is reasonably certain that the option will be exercised;Payments for exercising the option to terminate the lease, provided that the lease term reflects that the company will exercise theoption to terminate the lease.The company uses the interest rate implicit in the lease as the discount rate, but if the interest rate implicit in the lease cannot bereasonably determined, the company's incremental borrowing rate is used as the discount rate.The company calculates the interest expense of the lease liability in each period of the lease term according to the fixed periodicinterest rate, and includes it into the current profit and loss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss or thecost of related assets when they are actually incurred.After the commencement date of the lease term, the Company shall re-measure the lease liabilities and adjust the correspondingright-of-use assets under the following circumstances. If the book value of the right-of-use assets has been reduced to zero, but thelease liabilities still need to be further reduced, the The difference is included in the current profit and loss:
When there is a change in the evaluation results of the purchase option, lease renewal option or termination option, or the actualexercise of the aforementioned options is inconsistent with the original evaluation result, the company will calculate the leasepayment after the change and the revised discount. Remeasure the lease liability at the present value of the rate calculation;When the actual fixed payment changes, the estimated payable amount of the residual value guarantee changes, or the index or ratioused to determine the lease payment changes, the company calculates the present value based on the changed lease payment and theoriginal discount rate Remeasure the lease liability. However, where changes in lease payments result from changes in floatinginterest rates, a revised discount rate is used to calculate the present value.
(3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, andincludes the relevant lease payments in the current profit and loss or related asset costs on a straight-line basis over each period of thelease term. Short-term leases refer to leases with a lease term of not more than 12 months and excluding purchase options on thecommencement date of the lease term. A low-value asset lease refers to a lease with a lower value when a single leased asset is abrand-new asset. If the company subleases or expects to sublease the leased assets, the original lease is not a low-value asset lease.
(4) Lease change
If the lease changes and the following conditions are met at the same time, the company will account for the lease change as aseparate lease:
The lease modification expands the scope of the lease by adding the right to use one or more leased assets;The increased consideration is equivalent to the amount adjusted by the individual price of the expanded part of the lease scopeaccording to the contract.If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the company re-allocates theconsideration of the contract after the change, re-determines the lease term, and calculates the current value based on the leasepayment after the change and the revised discount rate. value to remeasure the lease liability.
If the lease change leads to the narrowing of the lease scope or the shortening of the lease term, the company will reduce the bookvalue of the right-of-use asset accordingly, and include the relevant gains or losses on partial or complete termination of the lease intothe current profit and loss. If other lease changes result in re-measurement of lease liabilities, the Company adjusts the book value ofthe right-of-use asset accordingly.
(5) Rent concessions related to COVID-19
For those who adopt the simplified method of rent reduction related to the new crown pneumonia epidemic, the company does notevaluate whether there is a lease change, and continues to calculate the interest expense of the lease liability at the same discount rateas before the reduction and include it in the current profit and loss, and continue to use the same discount rate as before the reduction.The right-of-use asset is depreciated using the same method as before. In the event of rent reduction or exemption, the company willtreat the reduced rent as the variable lease payment amount. When the original rent payment obligation is relieved by reaching aconcession agreement, the discounted amount at the undiscounted or pre-discount discount rate will be used to offset the relevantasset costs. or expenses, and adjust the lease liabilities accordingly; if the rent payment is delayed, the company offsets the leaseliabilities recognized in the previous period when the actual payment is made.For short-term leases and low-value asset leases, the company continues to include the original contract rent in the cost or expense ofthe relevant assets in the same way as before the concession. In the event of rent reduction or exemption, the company will treat thereduced rent as the variable lease payment, and write down the relevant asset costs or expenses during the reduction and exemptionperiod; if the rent payment is delayed, the company will recognize the rent payable as payable during the original payment period.When the actual payment is made, the payables recognized in the previous period are offset.
43. Other important accounting policy and estimation
44. Changes of important accounting policy and estimation
(1)Changes of important accounting policies
√ Applicable □ Not applicable
Content & reasons | Approval procedure | Note |
Implementation of the Accounting Standards for Business Enterprise No.21- Lease ( Revised in 2018) | Implementation of standards by the Ministry of Finance | |
Implementation of the "Interpretation No.14 of Accounting Standards for Business Enterprises" | Implementation of standards by the Ministry of Finance | |
Implementation of the "Notice on Adjusting the Scope of Application of the Regulations on the Accounting Treatment of Rent Concessions Related to the New Coronary Pneumonia Epidemic" | Implementation of standards by the Ministry of Finance | |
Implementation of the "Interpretation No.15 of Accounting Standards for | Implementation of standards by the Ministry of Finance |
(1) Implementation of the Accounting Standards for Business Enterprises No. 21 - Lease ( Revised in 2018)The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 21 - Lease ("New LeaseStandards" for short) in 2018. The Company has implemented the new lease standards from January 1, 2021.According to the revised standards, the company chooses not to re-evaluate whether they are leases or includeleases on the first execution date for contracts that already exist prior to the first execution date.
The Company acts as the lessee
The Company chooses to adjust the amount of retained earnings and other relevant items in its financialstatements at the beginning of the year of the first implementation of the new lease standards based on thecumulative impact of the first implementation of the new lease standards, without adjusting the comparable periodinformation.
For an operating lease existing prior to the first execution date, the Company shall measure the lease liabilities atthe first execution date based on the present value of the remaining lease payment discounted at the incrementalborrowing rate of the Company at the first execution date, and measure the right-of-use assets according to one ofthe following two ways for each lease:
Assume that the book value of the new lease standards is adopted on the start date of the lease term and theCompany's incremental borrowing rate on the first execution date is used as the discount rate.
Make necessary adjustments to the prepaid rent for the amount equal to the lease liability.Tips: Under each lease, the enterprise may choose to measure the right-of-use assets according to either of theabove.
For operating leases prior to the first execution date, the Company may choose one or more of the followingsimplified treatments for each lease in conjunction with the above method: tip:enterprise need to be modifiedaccording to the actual situation.
1) The leases completed within 12 months after the first execution date shall be treated as short-term leases;
2) When measuring lease liabilities, leases with similar features shall use the same discount rate;
3) The measurement of the right-of-use assets does not include the initial direct cost;
4) Where there is an option to renew or terminate the lease, the lease term shall be determined according to theactual exercise of the option prior to the first exercise and other latest conditions;
5) As an alternative to the impairment test of the right-of-use asset, assess whether the contract containing thelease is a loss contract prior to the first execution date in accordance with the Notes "III (24) Accrual liabilities"and adjust the right-of-use asset according to the amount of loss provisions recorded in the balance sheet prior tothe first execution date;
6) The lease changes occurring before the first execution date shall not be retroactively adjusted, and theaccounting treatment shall be conducted in accordance with the final arrangement of lease changes and the newlease standards.
When measuring the lease liability, the Company uses the lessee’s incremental borrowing ate as of January 1,2021 (weighted average: 4.15%) to discount the lease payments.
Outstanding minimum lease payments under significant operating lease as disclosed in the consolidate financial statements as of December 31, 2020 | 2,520,375.75 |
Present value of the interest rate discounted at the incremental borrowing rate on January 1, 2021
Present value of the interest rate discounted at the incremental borrowing rate on January 1, 2021 | 2,120,031.14 |
Lease liability under the new leasing standards as of January 1, 2021 | 2,120,031.14 |
Difference between the present value of the above discount and the lease liability
Difference between the present value of the above discount and the lease liability |
For the finance lease existing before the first execution date, the Company shall measure the right-of-use assetsand lease liabilities respectively on the first execution date according to the original book value of the financelease assets and the finance lease payments payable.
The Company acts as the lessorFor the subleases classified as operating leases prior to the first execution date and surviving after the firstexecution date, the Company will re-evaluate them on the first execution date on the basis of the remainingcontract term and terms of the original lease and the sublease, and classify them in accordance with the provisionsof the new lease standards. If they are reclassified as finance leases, the Company will treat them as new financeleases.Except for subleases, the Company does not need to adjust the leases on which it is the lessor in accordance withthe new lease standards. The company shall conduct accounting treatment in accordance with the new leasestandards from the first execution date.
The main effects of the Company's implementation of the new lease standards on the financial statements are asfollows:
Content and reasons for changes in accounting policies | Approval procedure | Statement items affected | Impact on the amount on balance as of 1 Jan. 2021 | |
Consolidate | Parent company | |||
(1) As a lessee, the adjustment of the operating leases existing before the date of fist execution | Implemented in accordance with the Ministry of Finance | Right-of-use assets | 2,120,031.14 | |
Lease liability | 1,839,885.54 | |||
Non-current liabilities due in one year | 280,145.60 |
(2) Implementation of the "Interpretation No. 14 of Accounting Standards for Business Enterprises"
The Ministry of Finance promulgated the "Interpretation No. 14 of Accounting Standards for BusinessEnterprises" (CK[2021] No. 1, hereinafter referred to as "Interpretation No. 14") on February 2, 2021, which hastaken effect as of the date of promulgation. The relevant business added from January 1, 2021 to the effective dateshall be adjusted according to Interpretation No. 14.
① Public-private partnership (PPP) project contracts
Interpretation No. 14 is applicable for the PPP project contracts that meet the "dual features" and "doublecontrols" described in the interpretation at the same time, and makes retroactive adjustment on the relevant PPPproject contracts that have been implemented before December 31, 2020 and have not been completed up to theimplementation date, where the retroactive adjustment is not feasible, the application begins at the beginning ofthe earliest period of retroactive adjustment, cumulative impact adjusts the retained earnings at the beginning ofthe year of the implementation date and other related items in the financial statements, and information ofcomparable periods shall not be adjusted. The implementation of the provisions does not have a significant impacton the Company's financial situation and operating results.
② Interest rate benchmark reform
Interpretation No. 14 provides a simplified accounting treatment for cases where the basis for determining cashflows related to financial instrument contracts and lease contracts is changed as a result of the interest ratebenchmark reform.
According to the provisions of this interpretation, businesses related to the interest rate benchmark reformoccurring before December 31, 2020 shall be subject to retroactive adjustment, except where retroactiveadjustment is not feasible, and there is no need to adjust the data in the previous comparative financial statements.On the implementation date of this interpretation, the difference between the original carrying value of financialassets and financial liabilities and the new carrying value shall be included in the retained earnings or othercomprehensive income at the beginning of the annual reporting period of the implementation date of thisinterpretation. The implementation of the provisions does not have a significant impact on the Company'sfinancial situation and operating results.
(3) Execution of the “Notice on the Adjustment of the Scope of Application of the Provisions on the AccountingTreatment of COVID-19 Related Rent Concessions”On June 19, 2020, the Ministry of Finance issued the "Regulations on Accounting Treatment of RentalConcessions Related to the COVID-19 Epidemic" (CK (2020) No. 10), and enterprises can choose to adoptsimplified methods for accounting treatments for rent concessions and deferred payment of rents directly causedby the COVID-19 epidemic that meet the conditions.
On May 26, 2021, the Ministry of Finance promulgated the Notice on the Adjustment of the Scope of Applicationof the Provisions on the Accounting Treatment of COVID-19 Related Rent Concessions (CK [2021] No. 9), whichhas taken effective from May 26, 2021, the scope of application of COVID-19 pandemic-related rent concessions
which are allowed to adopt the simplified method under the Provisions on the Accounting Treatment ofCOVID-19 Related Rent Concessions is adjusted from the "the concession applies only to lease payments payablebefore 30 June 2021" to "the concession only applies to lease payments payable before 30 June 2022" to "theconcession only applies to lease payments payable before 30 June 2022", and other conditions remain unchanged.The Company has selected the simplified accounting treatment method for all the eligible lease contracts beforethe adjustment of scope of application, and adopted the simplified accounting treatment method for all the eligibleand similar lease contracts after the adjustment of scope of application(Tip: if not all, the nature of the leasecontract treated using the simplified method should also be disclosed, however, the choice for the simplifiedmethod should be applied consistently to similar leases that qualify before and after the adjustment to the scope ofapplication of the "Regulations on Accounting Treatment of Rental Concessions Related to the COVID-19Epidemic" ), and made retroactive adjustment on relevant lease contracts that had adopted lease change foraccounting treatment before the release of the notice, but did not adjust the data of the previous comparativefinancial statement; The relevant rent concessions incurred between January 1, 2021 and the effective date of thenotice of which accounting treatment are not conducted in accordance with the provisions of the notice shall beadjusted in accordance with the notice.
(4) Implementation of the Interpretation No. 15 of Accounting Standards for Business Enterprises on the relatedpresentation of funds central managementOn December 30, 2021, the Ministry of Finance issued the Interpretation No. 15 of Accounting Standards forBusiness Enterprises (CK [2021] No. 35, hereinafter referred to as “Interpretation No. 15”), the content of the“related presentation of funds central management” came into force as of the date of its promulgation, and thefinancial statement data in the comparable period should be adjusted accordingly.Interpretation No. 15 has explicitly stipulated how the balance involved in the centralized and unifiedmanagement of the funds of the parent company and member units through internal settlement centers and financecompanies should be presented and disclosed in the balance sheet. The implementation of this stipulation has nothad a significant impact on the financial condition and operating results of the Company.
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented thenew leasing standards since 2021
√ Applicable □ Not applicable
Whether to adjust the items of balance sheet at the beginning of the year
√Yes □No
Consolidate balance sheet
Unit: RMB/CNY
Item | 2020-12-31 | 2021-01-01 | Adjustments |
Current assets: | |||
Monetary fund | 190,494,225.94 | 190,494,225.94 | |
Settlement provisions | |||
Capital lent | |||
Trading financial assets | 160,621,806.51 | 160,621,806.51 | |
Derivative financial assets | |||
Note receivable | 2,213,426.00 | 2,213,426.00 | |
Account receivable | 198,311,102.17 | 198,311,102.17 | |
Account receivable financing | |||
Accounts paid in advance | 27,136,263.84 | 27,136,263.84 | |
Insurance receivable | |||
Reinsurance receivables | |||
Contract reserve of reinsurance receivable | |||
Other account receivable | 22,631,043.66 | 22,631,043.66 | |
Including: Interest receivable | |||
Dividend |
receivable | |||
Buying back the sale of financial assets | |||
Inventory | 3,418,328,974.27 | 3,418,328,974.27 | |
Contract asset | |||
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 119,750,603.31 | 119,750,603.31 | |
Total current assets | 4,139,487,445.70 | 4,139,487,445.70 | |
Non-current assets: | |||
Loans and payments on behalf | |||
Creditors’ investment | |||
Other creditors’ investment | |||
Long-term account receivable | |||
Long-term equity investment | 73,215,147.84 | 73,215,147.84 | |
Other equity instrument investment | |||
Other non-current financial assets | 57,500.00 | 57,500.00 | |
Investment real estate | 253,037,899.57 | 253,037,899.57 | |
Fix assets | 1,122,692,490.55 | 1,122,692,490.55 | |
Construction in progress | 1,045,643,295.57 | 1,045,643,295.57 | |
Productive biological asset | 387,694.20 | 387,694.20 | |
Oil and gas asset | |||
Right-of-use asset | 2,120,031.14 | 2,120,031.14 | |
Intangible assets | 599,306,223.04 | 599,306,223.04 | |
Expense on Research and Development | |||
Goodwill | |||
Long-term expenses | 31,732,325.01 | 31,732,325.01 |
to be apportioned | |||
Deferred income tax assets | 41,347,952.12 | 41,347,952.12 | |
Other non-current assets | 2,476,174.33 | 2,476,174.33 | |
Total non-current assets | 3,169,896,702.23 | 3,172,016,733.37 | 2,120,031.14 |
Total assets | 7,309,384,147.93 | 7,311,504,179.07 | 2,120,031.14 |
Current liabilities: | |||
Short-term loans | 110,318,727.12 | 110,318,727.12 | |
Loan from central bank | |||
Capital borrowed | |||
Tradable financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | 480,896,517.64 | 480,896,517.64 | |
Accounts received in advance | 3,376,262.66 | 3,376,262.66 | |
Contract liabilities | 108,975,866.82 | 108,975,866.82 | |
Selling financial asset of repurchase | |||
Absorbing deposit and interbank deposit | |||
Security trading of agency | |||
Security sales of agency | |||
Wage payable | 260,514,559.66 | 260,514,559.66 | |
Taxes payable | 66,904,735.29 | 66,904,735.29 | |
Other account payable | 397,325,719.50 | 397,325,719.50 | |
Including: Interest payable | |||
Dividend payable | 2,933,690.04 | 2,933,690.04 | |
Commission charge |
and commission payable | |||
Reinsurance payable | |||
Liability held for sale | |||
Non-current liabilities due within one year | 104,225,183.07 | 104,505,328.67 | 280,145.60 |
Other current liabilities | 7,250,420.68 | 7,250,420.68 | |
Total current liabilities | 1,539,787,992.44 | 1,540,068,138.04 | 280,145.60 |
Non-current liabilities: | |||
Insurance contract reserve | |||
Long-term loans | 841,864,531.75 | 841,864,531.75 | |
Bonds payable | |||
Including: preferred stock | |||
Perpetual capital securities | |||
Lease liability | 1,839,885.54 | 1,839,885.54 | |
Long-term account payable | 16,126,146.20 | 16,126,146.20 | |
Long-term wage payable | |||
Accrual liabilities | 3,500,000.00 | 3,500,000.00 | |
Deferred income | 100,710,038.32 | 100,710,038.32 | |
Deferred income tax liabilities | 12,150,035.13 | 12,150,035.13 | |
Other non-current liabilities | |||
Total non-current liabilities | 974,350,751.40 | 976,190,636.94 | 1,839,885.54 |
Total liabilities | 2,514,138,743.84 | 2,516,258,774.98 | 2,120,031.14 |
Owners’ equity: | |||
Share capital | 1,152,535,254.00 | 1,152,535,254.00 | |
Other equity |
instrument | |||
Including: preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 1,422,892,729.36 | 1,422,892,729.36 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve | |||
Surplus public reserve | 382,367,575.37 | 382,367,575.37 | |
Provision of general risk | |||
Retained profit | 1,637,536,441.03 | 1,637,536,441.03 | |
Total owner’s equity attributable to parent company | 4,595,331,999.76 | 4,595,331,999.76 | |
Minority interests | 199,913,404.33 | 199,913,404.33 | |
Total owner’s equity | 4,795,245,404.09 | 4,795,245,404.09 | |
Total liabilities and owner’s equity | 7,309,384,147.93 | 7,311,504,179.07 | 2,120,031.14 |
Explanation on adjustment
Balance sheet of parent company
Unit: RMB/CNY
Item | 2020-12-31 | 2021-01-01 | Adjustments |
Current assets: | |||
Monetary fund | 5,312,806.71 | 5,312,806.71 | |
Trading financial assets | 621,806.51 | 621,806.51 | |
Derivative financial assets | |||
Note receivable | |||
Account receivable | 4,087,681.18 | 4,087,681.18 | |
Account receivable financing | |||
Accounts paid in |
advance | |||
Other account receivable | 892,105,968.23 | 892,105,968.23 | |
Including: Interest receivable | |||
Dividend receivable | 390,000,000.00 | 390,000,000.00 | |
Inventory | |||
Contract asset | |||
Assets held for sale | |||
Non-current asset due within one year | |||
Other current assets | 1,497,597.50 | 1,497,597.50 | |
Total current assets | 903,625,860.13 | 903,625,860.13 | |
Non-current assets: | |||
Creditors’ investment | |||
Other creditors’ investment | |||
Long-term account receivable | |||
Long-term equity investment | 3,707,714,425.09 | 3,707,714,425.09 | |
Other equity instrument investment | |||
Other non-current financial assets | |||
Investment real estate | 16,986,504.04 | 16,986,504.04 | |
Fix assets | 33,125,275.65 | 33,125,275.65 | |
Construction in progress | |||
Productive biological asset | 387,694.20 | 387,694.20 | |
Oil and gas asset | |||
Right-of-use asset | |||
Intangible assets | 12,842,693.98 | 12,842,693.98 | |
Expense on Research and Development |
Goodwill | |||
Long-term expenses to be apportioned | 1,040,708.20 | 1,040,708.20 | |
Deferred income tax assets | |||
Other non-current assets | |||
Total non-current assets | 3,772,097,301.16 | 3,772,097,301.16 | |
Total assets | 4,675,723,161.29 | 4,675,723,161.29 | |
Current liabilities: | |||
Short-term loans | |||
Tradable financial liability | |||
Derivative financial liability | |||
Note payable | |||
Account payable | |||
Accounts received in advance | |||
Contract liabilities | 411.00 | 411.00 | |
Wage payable | 26,535,794.31 | 26,535,794.31 | |
Taxes payable | 2,736,075.65 | 2,736,075.65 | |
Other account payable | 45,560,514.82 | 45,560,514.82 | |
Including: Interest payable | |||
Dividend payable | 2,933,690.04 | 2,933,690.04 | |
Liability held for sale | |||
Non-current liabilities due within one year | |||
Other current liabilities | |||
Total current liabilities | 74,832,795.78 | 74,832,795.78 | |
Non-current liabilities: | |||
Long-term loans | |||
Bonds payable |
Including: preferred stock | |||
Perpetual capital securities | |||
Lease liability | |||
Long-term account payable | |||
Long-term wage payable | |||
Accrual liabilities | 3,500,000.00 | 3,500,000.00 | |
Deferred income | |||
Deferred income tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 3,500,000.00 | 3,500,000.00 | |
Total liabilities | 78,332,795.78 | 78,332,795.78 | |
Owners’ equity: | |||
Share capital | 1,152,535,254.00 | 1,152,535,254.00 | |
Other equity instrument | |||
Including: preferred stock | |||
Perpetual capital securities | |||
Capital public reserve | 3,018,106,568.27 | 3,018,106,568.27 | |
Less: Inventory shares | |||
Other comprehensive income | |||
Reasonable reserve | |||
Surplus public reserve | 109,963,147.23 | 109,963,147.23 | |
Retained profit | 316,785,396.01 | 316,785,396.01 | |
Total owner’s equity | 4,597,390,365.51 | 4,597,390,365.51 | |
Total liabilities and owner’s equity | 4,675,723,161.29 | 4,675,723,161.29 |
Explanation on adjustment
(4) Retrospective adjustment of early comparison data description when implemented the new leasingstandards since 2021
□ Applicable √ Not applicable
45. Other
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes | Basis | Rate |
VAT | The output tax is calculated on the basis of the sales of goods and the taxable service income calculated according to the tax law. After deducting the input tax amount that is allowed to be deducted in the current period, the difference part is the value-added tax payable. | 13.00%, 9.00%, 6.00%, 5.00%, 3.00% |
Urban maintenance and construction tax | Calculated according to the actual value-added tax and consumption tax | 5.00%, 7.00% |
Enterprise income tax | Calculated according to taxable income | 25.00%, 20.00%, 15.00% |
Educational surtax | Calculated according to the actual value-added tax and consumption tax | 3.00% |
Local education surcharge | Calculated according to the actual value-added tax and consumption tax | 2.00% |
Property tax | Price-based resource tax, 1.2 percent of the remaining value after deducting 20% of the original value of the property; 12 percent of the rental income if levy by rents. | 1.20%, 12.00% |
Deed tax | When the property right of the real property is transferred, the contract price shall be paid to the owner of the property right in one lump sum | 3.00%-5.00% |
Rate of income tax for different taxpaying body:
Taxpaying body | Rate of income tax |
Shenzhen Cereals Holdings Co., Ltd. | 25.00% |
Shenzhen Cereals Group Co., Ltd(hereinafter referred to as"SZCG") | 25.00% , some businesses are tax-free |
Shenzhen Hualian Grain and Oil Trading Co., Ltd.(hereinafter referred to as"Hualian Cereals and Oil") | 25.00% |
Shenzhen Flour Co., Ltd(hereinafter referred to as"Shenzhen Flour") | Tax-free |
Shenliang Quality Inspection Co., Ltd. (hereinafter referred to as"Quality Inspection") | 25.00% |
Hainan Shenliang Oil & Food Co., Ltd. (hereinafter referred to as"Hainan Oil & Food") | 20.00% |
Shenzhen Shenliang Doximi Business Co., Ltd. (hereinafter referred to as"Doximi ") | 25.00% |
Shenzhen Shenliang Big Kitchen Food Supply Chain Co., Ltd(hereinafter referred to as"Big Kitchen") | 25.00% |
Shenzhen Shenliang Storage (Yingkou) Co., Ltd(hereinafter referred to as"Yingkou Storage") | 25.00% |
Shenzhen Shenliang Cold Chain Logistics Co., Ltd.(hereinafter referred to as"Cold Chain Logistics") | 15.00% |
Shenzhen Shenliang Property Development Co., Ltd.(hereinafter referred to as"Shenliang Property") | 25.00% |
Shenzhen Shenliang Property Management Co., Ltd. (hereinafter referred to as"Shenliang Property") | 20.00% |
Dongguan Shenliang Logistics Co., Ltd.(hereinafter referred to as"Dongguan Logistics") | 25.00% |
Dongguan International Food Industrial Park Development Co., Ltd.(hereinafter referred to as"International Food") | 25.00% |
Dongguan Shenliang Oil & Food Trade Co., Ltd.(hereinafter referred to as"Dongguan Oil & Food") | 25.00% |
Shuangyashan Shenliang Zhongxin Cereals Base Co., Ltd. (hereinafter referred to as"Shuangyashan ") | 25.00% |
Heilongjiang Hongxinglong Nongken Shenxin Cereals Industrial Park Co., ltd.(hereinafter referred to as"Hongxinglong") | 25.00% |
Shenzhen Shenbao Huacheng Technology Co., Ltd. (hereinafter referred to as"Shenbao Huacheng ") | 15.00% |
Wuyuan Ju Fang Yong Tea Industry Co., Ltd(hereinafter referred to as"Wuyuan Ju Fang Yong") | 15.00% |
Shenzhen Shenshenbao Investment Co., Ltd(hereinafter referred to as"Shenshenbao Investment ") | 25.00% |
Shenzhen Shenshenbao Tea Culture Commercial Management Co., Ltd.(hereinafter referred to as"Shenbao Tea Culture") | 25.00% |
Hangzhou Ju Fang Yong Holding Co., Ltd(hereinafter referred to as"Ju Fang Yong Holding") | 25.00% |
Hangzhou Ju Fang Yong Trading Co., Ltd. (hereinafter referred to as"Ju | 25.00% |
Fang Yong Trading ") | |
Hangzhou Fuhaitang Catering Management Chain Co., Ltd. (hereinafter referred to as"Fuhaitang Catering") | 25.00% |
Dongguan Shenliang Hualian Cereals and Oil Trading Co., Ltd(hereinafter referred to as“Dongguan Hualian”) | 25.00% |
Mount Wuyi Shenbao Rock Tea Co., Ltd.(hereinafter referred to as"Shenbao Rock Tea") | 25.00% |
Yunnan Shenbao Pu’er Tea Supply Chain Management Co., Ltd.(hereinafter referred to as"Pu’er Tea Supply Chain") | 25.00% |
Shenzhen Shenliang Food Co., Ltd.(hereinafter referred to as“Shenzhen Shenliang Food ”) | 25.00% |
Yunnan Pu’er Tea Trading Center Co., Ltd.(hereinafter referred to as"Pu’er Tea Trading Center") | 25.00% |
Huizhou Shenbao Food Co., Ltd.(hereinafter referred to as"Huizhou Shenbao Food ") | 25.00% |
Huizhou Shenbao Technology Co., Ltd.(hereinafter referred to as"Huizhou Shenbao ") | 25.00% |
Shenzhen Shenbao Property Management Co., Ltd. (hereinafter referred to as"Shenbao Property ") | 20.00% |
Shenzhen Shenbao Technology Center Co., Ltd.(hereinafter referred to as"Shenbao Technology ") | 25.00% |
Shenzhen Shenbao Industrial & Trading Co., Ltd(hereinafter referred to as"Shenbao Industrial & Trading") | 25.00% |
Shenzhen Shenliang Hongjun Catering Management Co., Ltd.(hereinafter referred to as“Shenliang Hongjun ”) | 25.00% |
Wuhan Jiacheng Biotechnology Co., Ltd(hereinafter referred to as“Wuhan Jiacheng ”) | 15.00% |
Wuhan Jiacheng Biotechnology Co., Ltd(hereinafter referred to as“Wuhan Jiacheng”) | 25.00% |
Wuhan Hongqu Health Biology Co., Ltd(hereinafter referred to as“Wuhan Hongqu”) | 25.00% |
Macheng Jintian Camellia Oil Co., Ltd.(hereinafter referred to as“Macheng Jintian”) | 25.00% |
2. Tax preferential
1. VAT discounts and approval
According to the “Notice of the Ministry of Finance and the State Administration of Taxation on the IssuesConcerning the VAT Collection and Exemption of Grain Enterprises (CSZ [1999] No. 198)” and “Shenzhen Tax
Service, State Taxation Administration and Shenzhen Finance Bureau SGSF (SCF [1999] No.428)”, confirmingthat SZCG, the Company’s subsidiary, and its subsidiaries, are state-owned grain purchase and sale enterprises thatundertake grain collection and storage tasks for Shenzhen, the grain sold is subject to tax-free declaration by ruleand enjoys the exemption from VAT. In addition, according to the stipulation of the “Announcement of StateAdministration of Taxation on Relevant Management Matters After Clarifying the Cancellation of the Approval ofSome VAT Preferential Policies” (SAT Announcement 2015 No. 38), the approval for exemption from VAT andthe involved tax review and approval procedures for the state-owned grain enterprises that undertake graincollection and storage tasks, other grain enterprises that operate tax-free projects and enterprises that have ediblevegetable oil sales business for government reserves are cancelled and changed to record management. Thetaxpayer does not change the content of the record materials during the period of tax exemption can be put on aone-time record. In December 2013, SZCG obtained the notice of the VAT preferential record (SGSFJBM [2013]No.2956) from Shenzhen Futian State Administration of Taxation. In the case of no change in policy, this limitedfiling period started on January 1
st, 2014.The VAT input tax amount of the preferential item was separatelyaccounted for, and the input VAT calculation method cannot be changed within 36 months after the selection. Asof December 31, 2018, the tax exemption policy has been in effect since its filing in 2014, and the company’s VATinput tax has not changed since it was accounted for separately in 2014, so the company continues to enjoy the taxpreference.
2. Stamp duty, house property tax, and urban land use tax preferences
According to the stipulations of “Notice of the Ministry of Finance and the State Administration of Taxation onthe Relevant Tax Policies Concerning Some National Reserved Commodities (CS [2019] No. 77)”, anddocuments of Guangdong Province Department of Finance, Guangdong Provincial Taxation Bureau of the StateAdministration of Taxation and Guangdong Provincial Food and Material Reserve Bureau (Yue Cai Shui[2020]No.2, confirming that the fund account book of SZCG, the Company’s subsidiary, and its direct depots isexempt from stamp duty, confirming that the written purchase and sale contracts of SZCG in the process ofundertaking the commodity reserve business are exempt from stamp duty, and confirming that SZCG’s houseproperty and land used for the commodity reserve business are exempt from house property tax and urban landuse tax. The execution time limit for this tax preference policy is up to December 31, 2021.
3. Enterprise income tax
(1) On May 27, 2021, the general administration of Taxation, Ministry of Finance issued the Notice on theExtension of Preferential Policies of Enterprise Income Tax of Qianhai Shenzhen-Hong Kong Modern ServiceIndustry Cooperation Zone in Shenzhen, the enterprise income tax of qualified enterprises located in QianhaiShenzhen-Hong Kong Modern Service Industry Cooperation Zone is levied at the rate of 15.00%, and the Noticeto be implemented from January 1, 2021 to December 31, 2025. The Company's subsidiary cold chain logistics isregistered in Shenzhen Qianhai Cooperation Zone, which is eligible for preferential tax conditions. According torelevant policies of the cooperation zone, its income tax will enjoy a preferential tax of 15.00%
(2) On December 23, 2021, Shenbao Huacheng, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR202144205394) jointly issued by the Shenzhen Science and Technology Bureau,the Shenzhen Finance Bureau, and the Shenzhen Tax Service, State Taxation Administration, which is valid forthree years. According to the relevant preferential policies of the state for high-tech enterprises, the qualifiedhigh-tech enterprises will pay corporate income tax at a reduced income tax rate of 15.00% within three yearsfrom the year of identification. Shenbao Huacheng will enjoy the preferential tax policy from 2021 to 2024.
(3) On November 3, 2021, Wuyuan Jufangyong, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR202136000731) jointly issued by the Science and Technology Department ofJiangxi Province, the Finance Department of Jiangxi Province, and the Jiangxi Provincial Tax Service, StateTaxation Administration, which is valid for three years. According to the relevant preferential policies of the statefor high-tech enterprises, qualified high-tech enterprises will pay corporate income tax at a reduced income taxrate of 15.00% within three years from the year of identification. Wuyuan Jufangyong will enjoy the preferentialtax policy from 2021 to 2024.
(4) On November 15, 2019, Wuhan Jiacheng, a subsidiary of the Company, obtained the High-tech EnterpriseCertificate (Certificate No.: GR201942000977) jointly issued by the Department of Science and Technology ofHubei Province, the Hubei Provincial Department of Finance of Hubei Province, and the Hubei Provincial TaxService, State Taxation Administration, which is valid for three years. According to the relevant preferentialpolicies of the state for high-tech enterprises, qualified high-tech enterprises will pay corporate income tax at areduced income tax rate of 15.00% within three years from the year of identification. Wuhan Jiacheng enjoys thepreferential tax policy from 2019 to 2022.
(5) According to the Notice of the Ministry of Finance and the State Taxation Administration on the Treatment ofCorporate Income Tax Treatment of Fiscal Funds for Special Purposes (CS [2009] No. 87), the governmentalservice incomes obtained by SZCG, the Company’s subsidiary, and its subordinate companies by carrying outgovernment grain reserves business are fiscal funds for special purposes, those that meet the requirements can beregarded as non-taxable incomes and deducted from the total income when calculating the taxable income.Expenses arising from the use of the above non-taxable income for expenditure shall not be deducted from thecalculation of taxable income; for assets formed from expenditure, the calculated depreciation and amortizationshall not be deducted from the calculation of taxable income.
(6) Shenzhen Flour, a subsidiary of the Company, is a flour primary processing enterprise, according to thestipulations of the “Notice on Issuing the Scope (Trial) of Primary Processing of Agricultural Products Applicableto the Corporate Income Tax Preferential Policy (CS [2008] No. 149)” and the “Supplementary Notice on theScope of Primary Processing of Agricultural Products Applicable to the Corporate Income Tax Preferential Policyof the Ministry of Finance and the State Administration of Taxation” (CS [2011] No. 26), the wheat primaryprocessing is exempt from income tax.
(7) According to Article II of the "Notice of the State Taxation Administration and Ministry of Finance on theImplementation of Inclusive Tax Relief Policies for Small and Micro Enterprises" (CS[2029] No. 13), the portionof the annual taxable income of small, low-profit enterprises that does not exceed 1 million yuan will be includedin the taxable income by 25%, and the corporate income tax will be paid at a tax rate of 20%. The portion of theannual taxable income of small, low-profit enterprises exceeding 1 million yuan but not exceeding 3 million yuanwill be included in the taxable income by 50%, and the corporate income tax will be paid at a tax rate of 20%. OnMarch 31, 2021, the Ministry of Finance and the State Taxation Administration issued Announcement No. 12 of2021, for the part of the annual taxable income of small and low-profit enterprises not exceeding one million yuan,on the basis of the preferential policies stipulated in Article 2 of the Notice of the Ministry of Finance and theState Taxation Administration on Implementing Inclusive Tax Reduction and Exemption Policies for Small andMicro Enterprises (CS[2019] No. 13), the corporate income tax shall be halved; Hainan Cereals and Oils,Shenliang Property, and Shenbao Property, as the Company’s subsidiaries, are small and low-profit enterprises,and are eligible for tax preference.
3. Other
VII. Annotation to main items of consolidated financial statements
1. Monetary funds
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Cash on hand | 29,370.19 | 62,642.11 |
Cash in bank | 49,173,812.84 | 189,169,821.01 |
Other monetary fund | 1,206,740.62 | 1,261,762.82 |
Total | 50,409,923.65 | 190,494,225.94 |
Other explanation
2. Trading financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Financial assets measured by fair value and with variation reckoned into current gains/losses | 211,060,770.50 | 160,621,806.51 |
Including: | ||
Equity investment instrument | 921,099.27 | 621,806.51 |
Structured financial products | 210,139,671.23 | 160,000,000.00 |
Including: | ||
Total | 211,060,770.50 | 160,621,806.51 |
Other explanation:
3. Derivative financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
4. Note receivable
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Bank acceptance bill | 687,242.00 | 2,213,426.00 |
Total | 687,242.00 | 2,213,426.00 |
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Including: | ||||||||||
Including: |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio determines:
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer tothe disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written-off | Other |
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable √Not applicable
(3) Note receivable that pledged at period-end
Unit: RMB/CNY
Item | Amount pledged at period-end |
(4) Notes endorsement or discount and undue on balance sheet date
Unit: RMB/CNY
Item | Amount derecognition at period-end | Amount not derecognition at period-end |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item | Amount transfer to account receivable at period-end |
Other explanation
(6) Note receivable actually written-off in the period
Unit: RMB/CNY
Item | Amount written-off |
Including important note receivable that written-off:
Unit: RMB/CNY
Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on note receivable written-off:
5. Account receivable
(1) Category
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with bad debt provision accrual on a single basis | 95,231,065.86 | 25.05% | 92,862,561.98 | 97.51% | 2,368,503.88 | 99,461,835.19 | 33.33% | 96,675,238.63 | 97.20% | 2,786,596.56 |
Including: | ||||||||||
Account receivable with single significant amount and withdrawal bad debt provision on single basis | 10,455,627.54 | 2.75% | 10,455,627.54 | 100.00% | 10,455,627.54 | 3.50% | 10,455,627.54 | 100.00% | ||
Account receivable with single minor amount but with bad debts provision accrued on a single basis | 84,775,438.32 | 22.30% | 82,406,934.44 | 97.21% | 2,368,503.88 | 89,006,207.65 | 29.83% | 86,219,611.09 | 96.87% | 2,786,596.56 |
Account receivable with bad debt provision accrual on portfolio | 284,943,025.46 | 74.95% | 4,264,187.72 | 1.50% | 280,678,837.74 | 198,936,140.29 | 66.67% | 3,411,634.68 | 1.71% | 195,524,505.61 |
Including: | ||||||||||
Aging portfolio | 143,007,108.06 | 37.62% | 4,264,187.72 | 2.98% | 138,742,920.34 | 123,378,031.83 | 41.35% | 3,411,634.68 | 2.77% | 119,966,397.15 |
Other portfolio | 141,935,917.40 | 37.33% | 141,935,917.40 | 75,558,108.46 | 25.32% | 75,558,108.46 | ||||
Total | 380,174,091.32 | 100.00% | 97,126,749.70 | 25.55% | 283,047,341.62 | 298,397,975.48 | 100.00% | 100,086,873.31 | 33.54% | 198,311,102.17 |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Guangzhou Jinhe Feed Co., Ltd | 10,455,627.54 | 10,455,627.54 | 100.00% | Slightly possibly taken back |
Shenzhen Faqun | 4,582,156.00 | 4,582,156.00 | 100.00% | Slightly possibly taken |
Industry Co., Ltd. | back | |||
Li Shaoyu owes for goods | 2,929,128.53 | 2,929,128.53 | 100.00% | Slightly possibly taken back |
Zhuhai Doumen Huabi Feed Co., Ltd. | 2,396,327.14 | 2,396,327.14 | 100.00% | Slightly possibly taken back |
Chongqing Zhongxing Food Industry Co., Ltd. | 2,354,783.30 | 2,354,783.30 | 100.00% | Slightly possibly taken back |
Hengyang Feed factory | 2,591,566.65 | 2,591,566.65 | 100.00% | Slightly possibly taken back |
Sichuan Zhongxing Food Industry Co., Ltd. | 1,698,103.22 | 1,698,103.22 | 100.00% | Slightly possibly taken back |
Shenzhen Buji Agricultural Products Wholesale Center Market Xingmin Commercial Bank | 1,534,512.45 | 1,534,512.45 | 100.00% | Slightly possibly taken back |
Cao Shengyun | 1,429,745.00 | 1,429,745.00 | 100.00% | Slightly possibly taken back |
Huaxing Feed Factory, Shunde District, Foshan City | 1,290,274.22 | 1,290,274.22 | 100.00% | Slightly possibly taken back |
Shanghai office | 1,059,295.90 | 1,059,295.90 | 100.00% | Slightly possibly taken back |
Shenzhen Dihuan Investment Development Company | 1,045,356.50 | 1,045,356.50 | 100.00% | Slightly possibly taken back |
Other single provision | 61,864,189.41 | 59,495,685.53 | 96.17% | Slightly possibly taken back |
Total | 95,231,065.86 | 92,862,561.98 | -- | -- |
Bad debt provision accrual on single basis:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance |
Book balance | Bad debt provision | Accrual ratio | |
Aging portfolio | 143,007,108.06 | 4,264,187.72 | 2.98% |
Other portfolio | 141,935,917.40 | ||
Total | 284,943,025.46 | 4,264,187.72 | -- |
Explanation on portfolio determines:
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within one year (including 1-year) | 281,533,278.59 |
1-2 years | 3,339,030.49 |
2-3 years | 1,662,562.95 |
Over 3 years | 93,639,219.29 |
3-4 years | 860,649.61 |
4-5 years | 669,494.34 |
Over 5 years | 92,109,075.34 |
Total | 380,174,091.32 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written-off | Other | |||
Bad debt provision accrual on single basis | 96,675,238.63 | 3,812,676.65 | 92,862,561.98 | |||
Aging portfolio | 3,411,634.68 | 821,342.16 | 31,210.88 | 4,264,187.72 | ||
Total | 100,086,873.31 | 821,342.16 | 3,812,676.65 | 31,210.88 | 97,126,749.70 |
Including major amount bad debt provision that collected or reversal in the period:
Unit: RMB/CNY
Enterprise | Amount collected or reversal | Collection way |
Fujian Wuyishan Xingyi Tea Co., Ltd. | 3,659,377.81 | Cash |
Total | 3,659,377.81 | -- |
(3) Account receivable actually written-off in the period
Unit: RMB/CNY
Item | Amount written-off |
Including major account receivable written-off:
Unit: RMB/CNY
Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on account receivable written-off:
(4) Top 5 account receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise | Ending balance of accounts receivable | Proportion in total receivables at ending balance | Bad debt preparation ending balance |
First | 135,674,000.00 | 35.69% | |
Second | 10,455,627.54 | 2.75% | 10,455,627.54 |
Third | 6,674,501.60 | 1.76% | 66,745.02 |
Fourth | 5,823,492.36 | 1.53% | 58,234.92 |
Fifth | 5,514,809.21 | 1.45% | 55,148.09 |
Total | 164,142,430.71 | 43.18% |
(5) Assets and liabilities resulted by account receivable transfer and continues involvementOther explanation:
(6) Account receivable derecognition due to financial assets transfer
6. Account receivable financing
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Changes of account receivable financing and change of fair value in the period
□ Applicable √Not applicable
If the impairment provision of account receivable financing is made in accordance with the general model of expected credit losses,please refer to the disclosure of other account receivables to disclose related information about impairment provision:
□ Applicable √Not applicable
Other explanation:
7. Accounts paid in advance
(1) By account age
Unit: RMB/CNY
Account age | Ending balance | Opening balance | ||
Amount | Ratio | Amount | Ratio | |
Within one year | 115,518,972.22 | 99.68% | 26,384,747.13 | 97.23% |
1-2 years | 193,952.41 | 0.17% | 616,328.73 | 2.27% |
2-3 years | 46,662.00 | 0.04% | 61,695.87 | 0.23% |
Over 3 years | 135,187.98 | 0.11% | 73,492.11 | 0.27% |
Total | 115,894,774.61 | -- | 27,136,263.84 | -- |
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
(2) Top 5 account paid in advance at ending balance by prepayment object
Prepaid objects | Ending balance | Proportion in of total prepayment balance at the end of period (%) |
First | 75,889,954.06 | 65.48 |
Second | 12,600,000.00 | 10.87 |
Three | 11,243,360.80 | 9.70 |
Fourth | 5,385,000.00 | 4.65 |
Fifth | 3,537,864.66 | 3.05 |
Total | 108,656,179.52 | 93.75 |
Other explanation:
8. Other account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other account receivable | 32,377,838.35 | 22,631,043.66 |
Total | 32,377,838.35 | 22,631,043.66 |
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
2) Significant overdue interest
Unit: RMB/CNY
Borrower | Ending balance | Overdue time | Overdue causes | Whether impairment occurs and its judgment basis |
Other explanation:
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or invested enterprise) | Ending balance | Opening balance |
2) Important dividend receivable with account age over one year
Unit: RMB/CNY
Item (or invested enterprise) | Ending balance | Account age | Reasons for not collection | Whether impairment occurs and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation:
(3) Other account receivable
1) By nature
Unit: RMB/CNY
Nature | Ending book balance | Opening book balance |
Margin and deposit | 12,323,696.08 | 14,965,660.96 |
Other intercourse funds | 119,880,221.09 | 105,459,789.74 |
Total | 132,203,917.17 | 120,425,450.70 |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on Jan. 1, 2021 | 2,380,495.42 | 95,413,911.62 | 97,794,407.04 | |
Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
Current accrual | 609,963.17 | 490,483.77 | 1,100,446.94 | |
Current reversal | 264,000.00 | 264,000.00 | ||
other changes | 195,224.84 | 1,000,000.00 | 1,195,224.84 | |
Ending balance | 3,185,683.43 | 96,640,395.39 | 99,826,078.82 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within one year (including 1-year) | 22,972,995.33 |
1-2 years | 5,057,158.39 |
2-3 years | 1,873,375.61 |
Over 3 years | 102,300,387.84 |
3-4 years | 1,832,884.33 |
4-5 years | 729,168.37 |
Over 5 years | 99,738,335.14 |
Total | 132,203,917.17 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written off | Other | |||
Bad debt provision accrual on single basis | 95,413,911.62 | 490,483.77 | 264,000.00 | 1,000,000.00 | 96,640,395.39 | |
Bad debt provision accrual on portfolio | 2,380,495.42 | 609,963.17 | 195,224.84 | 3,185,683.43 | ||
Total | 97,794,407.04 | 1,100,446.94 | 264,000.00 | 1,195,224.84 | 99,826,078.82 |
Including major amount with bad debt provision reverse or collected in the period:
Unit: RMB/CNY
Enterprise | Amount reversal or collected | Collection way |
4) Other account receivable actually written-off in the period
Unit: RMB/CNY
Item | Amount written-off |
Including important other account receivable written-off:
Unit: RMB/CNY
Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other account receivables | Ending balance of bad debt reserve |
First | Other intercourse funds | 24,608,742.46 | Within 1 year, over 5 years | 18.61% | 22,187,644.18 |
Second | Other intercourse funds | 8,326,202.63 | Over 5 years | 6.30% | 8,326,202.63 |
Three | Other intercourse funds | 8,285,803.57 | Over 5 years | 6.27% | 8,285,803.57 |
Fourth | Other intercourse funds | 8,257,311.80 | Over 5 years | 6.25% | 8,257,311.80 |
Fifth | Other intercourse funds | 6,397,067.59 | Over 5 years | 4.84% | 6,397,067.59 |
Total | 55,875,128.05 | -- | 42.27% | 53,454,029.77 |
6) Other account receivables related to government grants
Unit: RMB/CNY
Enterprise | Government grants | Ending balance | Ending account age | Time, amount and basis for collection predicted |
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedOther explanation:
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industryNo
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | Book balance | Inventories fall provision or contract performance costs impairment provision | Book value | |
Raw materials | 71,483,882.02 | 14,841,005.00 | 56,642,877.02 | 68,152,781.12 | 16,559,251.32 | 51,593,529.80 |
Goods in process | 23,932,099.23 | 23,932,099.23 | 27,672,374.13 | 27,672,374.13 | ||
Finished goods | 3,463,256,518.48 | 98,441,505.32 | 3,364,815,013.16 | 3,431,982,588.15 | 110,146,694.45 | 3,321,835,893.70 |
Revolving material | 5,596,700.59 | 966,891.96 | 4,629,808.63 | 5,614,055.57 | 887,023.20 | 4,727,032.37 |
Goods in transit | 5,362,274.64 | 5,362,274.64 | 7,582,654.13 | 7,582,654.13 | ||
Low-value consumables-packaging | 4,367,402.92 | 4,367,402.92 | 4,819,513.67 | 4,819,513.67 |
Work in process-outsourced | 6,159,701.53 | 5,290,502.32 | 869,199.21 | 5,388,478.79 | 5,290,502.32 | 97,976.47 |
Total | 3,580,158,579.41 | 119,539,904.60 | 3,460,618,674.81 | 3,551,212,445.56 | 132,883,471.29 | 3,418,328,974.27 |
(2) Inventories fall provision or contract performance costs impairment provision
Unit: RMB/CNY
Item | Opening balance | Current amount increased | Current amount decreased | Ending balance | ||
Accrual | Other | Reversal or write-off | Other | |||
Raw materials | 16,559,251.32 | 7,076.66 | 1,725,322.98 | 14,841,005.00 | ||
Finished goods | 110,146,694.45 | 191,902,627.59 | 267,214.69 | 203,875,031.41 | 98,441,505.32 | |
Revolving material | 887,023.20 | 132,307.16 | 52,438.40 | 966,891.96 | ||
Low-value consumables-packaging | ||||||
Work in process-outsourced | 5,290,502.32 | 5,290,502.32 | ||||
Total | 132,883,471.29 | 192,034,934.75 | 274,291.35 | 205,652,792.79 | 119,539,904.60 |
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
(4) Assets unsettled formed by construction contract which has completed at period-end
10. Contract assets
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value |
Amount and reasons for the major changes of book value of contract assets in the period:
Unit: RMB/CNY
Item | Amount changed | Cause of change |
If the bad debt provision of accrual contract is made in accordance with the general model of expected credit losses, please refer to thedisclosure of other account receivables to disclose related information about bad debt provision:
□ Applicable √Not applicable
Impairment provision of contract assets in the period
Unit: RMB/CNY
Item | Current accrual | Current reversal | Charge off/Written-off | Causes |
Other explanation:
11. Assets held for sale
Unit: RMB/CNY
Item | Ending book balance | Impairment provision | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other explanation:
12. Non-current asset due within one year
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Important creditors’ investment/ other creditors’ investment
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date |
Other explanation:
13. Other current assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Financial product | 10,000,000.00 | 10,000,000.00 |
Prepayment of taxes | 1,403,832.26 | 727,277.06 |
Input tax to be deducted | 77,054,152.64 | 109,023,326.25 |
Total | 88,457,984.90 | 119,750,603.31 |
Other explanation:
14. Creditors’ investment
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value |
Important creditors’ investment
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date |
Accrual of impairment provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation:
15. Other creditors’ investment
Unit: RMB/CNY
Item | Opening balance | Accrual interest | Change of fair value in the period | Ending balance | Cost | Accumulated change of fair value | Loss impairment accumulated recognized in other comprehensive income | Note |
Important other creditors’ investment
Unit: RMB/CNY
Other creditor item | Ending balance | Opening balance | ||||||
Face value | Coupon rate | Actual rate | Maturity date | Face value | Coupon rate | Actual rate | Maturity date |
Accrual of impairment provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation:
16. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance | Discount rate interval | ||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value |
Impairment of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term account receivable derecognition due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvementOther explanation
17. Long-term equity investment
Unit: RMB/CNY
The invested entity | Opening balance (book value) | Current changes (+,-) | Ending balance (book value) | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture |
II. Associated enterprise | |||||||||||
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | 3,359,601.93 | -576,910.63 | 2,782,691.30 | ||||||||
Zhuhai Hengxing Feed Industrial Co., Ltd. | 33,002,039.62 | -1,467,386.85 | 31,534,652.77 | ||||||||
Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | 26,255,667.98 | 1,750,375.17 | 28,006,043.15 | ||||||||
Shenzhen Shenyuan Data Tech. Co., Ltd | 10,597,838.31 | 569,217.96 | 11,167,056.27 |
Shenbao Liaoyuan Investment Company | 57,628.53 | ||||||||||
Shenzhen Shenbao (Xinmin) Foods Co., Ltd.*1 | 2,870,000.00 | ||||||||||
Subtotal | 73,215,147.84 | 275,295.65 | 73,490,443.49 | 2,927,628.53 | |||||||
Total | 73,215,147.84 | 275,295.65 | 73,490,443.49 | 2,927,628.53 |
Other explanation
18. Other equity instrument investment
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Itemized the non-tradable equity instrument investment in the period
Unit: RMB/CNY
Item | Dividend income recognized | Cumulative gains | Cumulative losses | Retained earnings transfer from other comprehensive income | Causes of those that designated measured by fair value and with its variation reckoned into other comprehensive income | Cause of retained earnings transfer from other comprehensive income |
Other explanation:
19. Other non-current financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Financial assets measured at fair value and whose changes are included in the current profit and loss | 57,500.00 | 57,500.00 |
Total | 57,500.00 | 57,500.00 |
Other explanation:
20. Investment real estate
(1) Measured at cost
√ Applicable □Not applicable
Unit: RMB/CNY
Item | House and building | Land use right | Construction in progress | Total |
I. Original book value | ||||
1.Opening balance | 590,440,328.15 | 590,440,328.15 | ||
2.Current amount increased | ||||
(1) Outsourcing | ||||
(2) Inventory\fixed assets\construction in process transfer-in | ||||
(3) Increased by combination | ||||
3.Current amount decreased | 7,350,000.00 | 7,350,000.00 | ||
(1) Disposal | ||||
(2) Other transfer-out | ||||
Transferred into fixed assets | 7,350,000.00 | 7,350,000.00 | ||
4.Ending balance | 583,090,328.15 | 583,090,328.15 | ||
II. Accumulated depreciation and accumulated amortization |
1.Opening balance | 337,402,428.58 | 337,402,428.58 | ||
2.Current amount increased | 16,099,076.08 | 16,099,076.08 | ||
(1) Accrual or amortization | 16,099,076.08 | 16,099,076.08 | ||
3.Current amount decreased | 3,507,875.00 | 3,507,875.00 | ||
(1) Disposal | ||||
(2) Other transfer-out | ||||
Transferred into fixed assets | 3,507,875.00 | 3,507,875.00 | ||
4.Ending balance | 349,993,629.66 | 349,993,629.66 | ||
III. Impairment provision | ||||
1.Opening balance | ||||
2.Current amount increased | ||||
(1) Accrual | ||||
3. Current amount decreased | ||||
(1) Disposal | ||||
(2) Other transfer-out | ||||
4.Ending balance | ||||
IV. Book value | ||||
1.Ending book value | 233,096,698.49 | 233,096,698.49 | ||
2. Opening book value | 253,037,899.57 | 253,037,899.57 |
(2) Measure on fair value
□ Applicable √Not applicable
(3) Investment real estate without property certificate completed
Unit: RMB/CNY
Item | Book value | Reasons |
Other explanation
21. Fixed assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Fixed assets | 2,124,725,043.92 | 1,122,692,490.55 |
Fixed Assets Liquidation | 3,106,105.27 | |
Total | 2,127,831,149.19 | 1,122,692,490.55 |
(1) Fixed assets
Unit: RMB/CNY
Item | House and buildings | Machinery equipment | Transport equipment | Electronic and other equipment | Total |
I. Original book value: | |||||
1.Opening balance | 1,039,002,914.64 | 532,316,124.36 | 17,662,383.74 | 68,287,685.82 | 1,657,269,108.56 |
2.Current amount increased | 846,343,800.46 | 229,191,092.20 | 3,500,298.15 | 28,153,146.23 | 1,107,188,337.04 |
(1)Purchase | 23,698,673.37 | 638,299.87 | 19,696,486.01 | 44,033,459.25 | |
(2) Construction in progress transfer-in | 812,217,492.93 | 199,550,530.32 | 1,504,401.06 | 1,013,272,424.31 | |
(3) Increased by combination | 26,776,307.53 | 5,941,888.51 | 2,861,998.28 | 428,521.70 | 36,008,716.02 |
(4) Investment properties transfer-in | 7,350,000.00 | 7,350,000.00 | |||
(5) Long-term prepaid expenses transfer-in | 6,523,737.46 | 6,523,737.46 | |||
3.Current amount decreased | 19,582,725.05 | 34,230,430.86 | 586,965.42 | 2,547,991.76 | 56,948,113.09 |
(1) Disposal or scrap | 19,582,725.05 | 34,230,430.86 | 586,965.42 | 2,547,991.76 | 56,948,113.09 |
4.Ending balance | 1,865,763,990.05 | 727,276,785.70 | 20,575,716.47 | 93,892,840.29 | 2,707,509,332.51 |
II. Accumulated depreciation | |||||
1.Opening balance | 217,598,012.04 | 255,179,025.46 | 12,517,697.64 | 44,323,543.85 | 529,618,278.99 |
2.Current amount increased | 45,734,901.59 | 31,885,917.13 | 3,612,055.68 | 10,979,162.80 | 92,212,037.20 |
(1) Accrual | 35,365,623.11 | 27,805,037.15 | 1,336,270.82 | 10,621,237.71 | 75,128,168.79 |
(2) Increased by combination | 6,861,403.48 | 4,080,879.98 | 2,275,784.86 | 357,925.09 | 13,575,993.41 |
(3)Transfer to investment properties | 3,507,875.00 | 3,507,875.00 | |||
3.Current amount decreased | 10,380,298.56 | 29,461,600.14 | 551,802.95 | 1,475,279.66 | 41,868,981.31 |
(1) Disposal or scrap | 10,380,298.56 | 29,461,600.14 | 551,802.95 | 1,475,279.66 | 41,868,981.31 |
4.Ending balance | 252,952,615.07 | 257,603,342.45 | 15,577,950.37 | 53,827,426.99 | 579,961,334.88 |
III. Impairment provision | |||||
1.Opening balance | 689,332.71 | 4,259,116.44 | 9,889.87 | 4,958,339.02 | |
2.Current amount increased | |||||
3.Current amount decreased | 689,332.71 | 1,446,052.60 | 2,135,385.31 | ||
(1) Disposal or scrap | 689,332.71 | 1,446,052.60 | 2,135,385.31 | ||
4.Ending balance | 2,813,063.84 | 9,889.87 | 2,822,953.71 | ||
IV. Book value | |||||
1.Ending book value | 1,612,811,374.98 | 466,860,379.41 | 4,997,766.10 | 40,055,523.43 | 2,124,725,043.92 |
2. Opening book value | 820,715,569.89 | 272,877,982.46 | 5,144,686.10 | 23,954,252.10 | 1,122,692,490.55 |
(2) Temporarily idle fixed assets
Unit: RMB/CNY
Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
(3) Fixed assets leased out by operation
Unit: RMB/CNY
Item | Ending book value |
(4) Fix assets without property certification held
Unit: RMB/CNY
Item | Book value | Reasons for without the property certification |
House buildings | 600,461,957.98 | Still under processing |
House buildings | 87,483,575.16 | Still under processing |
House buildings | 15,031,115.72 | At present, the relevant application and approval procedures are being started. |
Other explanation
(5) Fixed assets disposal
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Pending | 3,106,105.27 | |
Total | 3,106,105.27 |
Other explanation
22. Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Construction in progress | 207,946,539.97 | 1,045,643,295.57 |
Total | 207,946,539.97 | 1,045,643,295.57 |
(1) Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Shenbao Plaza project | 3,842,333.64 | 3,842,333.64 | 3,842,333.64 | 3,842,333.64 | ||
Dongguan grain storage and wharf matching project | 138,980,117.20 | 138,980,117.20 | 266,376,815.54 | 266,376,815.54 |
Deep processing of Dongguan Industry and Trading Food | 824,660.05 | 824,660.05 | 513,729.78 | 513,729.78 | ||
CDE storage of Dongguan Food Industrial Park and wharf mating projects | 1,953,288.69 | 1,953,288.69 | 720,076,609.48 | 720,076,609.48 | ||
Grain storage and processing | 43,334,291.04 | 43,334,291.04 | ||||
Water Leakage Project of Pinghu Reservoir | 2,763,915.81 | 2,763,915.81 | ||||
Shuguang Warehouse No. 3 & No. 6 Refrigeration Reconstruction Project | 1,992,099.16 | 1,992,099.16 | ||||
Renovation of supporting loading and unloading facilities in Pinghu Reservoir | 1,169,025.00 | 1,169,025.00 | ||||
Cold chain intelligent system | 3,645,282.94 | 3,645,282.94 | 3,645,282.94 | 3,645,282.94 | ||
Other | 6,016,576.13 | 903,189.74 | 5,113,386.39 | 6,674,716.56 | 903,189.74 | 5,771,526.82 |
Pinghu Grain Depot Phase III Low Temperature Rice Warehouse Expansion and Reconstruction Project-L2 | 8,584,169.91 | 8,584,169.91 |
Pinghu Grain Depot Phase III Low Temperature Rice Warehouse Expansion and Reconstruction Project-L4 | 7,637,139.21 | 7,637,139.21 | ||||
Far-reaching data technology smart logistics park management platform project | 1,587,200.00 | 1,587,200.00 | ||||
Installation Project/Phase I Project (Shuangya Mountain) | 11,405,601.69 | 11,405,601.69 | ||||
Warehouse No. 6 Smart Warehouse Renovation Project | 1,175,982.45 | 1,175,982.45 | ||||
Jiangxia Base Project | 27,039,711.44 | 27,039,711.44 | ||||
Total | 212,692,063.35 | 4,745,523.38 | 207,946,539.97 | 1,050,388,818.95 | 4,745,523.38 | 1,045,643,295.57 |
(2) Changes of major construction in progress
Unit: RMB/CNY
Item | Budget | Opening balance | Current amount increased | Transfer-in fixed assets | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated capitalization of interest | Including: amount of capitalization of interes | Interest capitalization rate in Period | Capital resources |
t in Period | ||||||||||||
Dongguan grain storage and wharf matching project | 1,242,000,000.00 | 266,376,815.54 | 50,374,795.82 | 173,212,723.20 | 4,558,770.96 | 138,980,117.20 | 76.77% | 76.77% | 34,894,934.20 | 2,658,027.56 | 4.90% | Financial Institution Loans |
Deep processing of Dongguan Industry and Trading Food | 292,000,000.00 | 513,729.78 | 493,930.27 | 183,000.00 | 824,660.05 | 42.00% | 42.00% | 4,812,867.06 | Financial Institution Loans | |||
CDE storage of Dongguan Food Industrial Park and wharf mating projects | 1,087,300,000.00 | 720,076,609.48 | 84,629,103.39 | 802,752,424.18 | 1,953,288.69 | 98.45% | 98.45% | 86,730,568.74 | 13,883,199.76 | 4.90% | Financial Institution Loans | |
Total | 2,621,300,000.00 | 986,967,154.80 | 135,497,829.48 | 976,148,147.38 | 4,558,770.96 | 141,758,065.94 | -- | -- | 126,438,370.00 | 16,541,227.32 | -- |
(3) The provision for impairment of construction in progress
Unit: RMB/CNY
Item | Amount accrual in the period | Reasons of accrual |
Other explanation
(4) Engineering material
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value |
Other explanation:
23. Productive biological asset
(1) Measured by cost
√ Applicable □Not applicable
Unit: RMB/CNY
Item | Plant | Livestock | Forestry | Fisheries | Total |
I. Original book value | |||||
1.Opening balance | 416,771.28 | 416,771.28 | |||
2.Current amount increased | |||||
(1)Outsourcing | |||||
(2)self-cultivate | |||||
3.Current amount decreased | |||||
(1)Disposal | |||||
(2)Other | |||||
4.Ending balance | 416,771.28 | 416,771.28 | |||
II. Accumulated depreciation | |||||
1.Opening balance | 29,077.08 | 29,077.08 | |||
2.Current amount increased | 9,692.40 | 9,692.40 | |||
(1)Accrual | 9,692.40 | 9,692.40 | |||
3.Current amount decreased | |||||
(1)Disposal | |||||
(2)Other | |||||
4.Ending balance | 38,769.48 | 38,769.48 | |||
III. Impairment provision | |||||
1.Opening balance | |||||
2.Current amount increased | |||||
(1)Accrual | |||||
3.Current amount decreased | |||||
(1)Disposal | |||||
(2)Other | |||||
4.Ending balance | |||||
IV. Book value | |||||
1.Ending book value | 378,001.80 | 378,001.80 | |||
2. Opening book value | 387,694.20 | 387,694.20 |
(2) Measured by fair value
□ Applicable √Not applicable
24. Oil and gas asset
□ Applicable √Not applicable
25. Right-of-use asset
Unit: RMB/CNY
Item | House building | Land use rights | Total |
I. Original book value |
1.Opening balance | 216,718.43 | 1,903,312.71 | 2,120,031.14 |
2.Current amount increased | 114,046,628.53 | 114,046,628.53 | |
New leasing | 114,046,628.53 | 114,046,628.53 | |
3.Current amount decreased | |||
4.Ending balance | 114,263,346.96 | 1,903,312.71 | 116,166,659.67 |
II. Accumulated depreciation | |||
1.Opening balance | |||
2.Current amount increased | 18,280,071.52 | 237,914.09 | 18,517,985.61 |
(1) Accrual | 18,280,071.52 | 237,914.09 | 18,517,985.61 |
3.Current amount decreased | |||
(1) Disposal | |||
4.Ending balance | 18,280,071.52 | 237,914.09 | 18,517,985.61 |
III. Impairment provision | |||
1.Opening balance | |||
2.Current amount increased | |||
(1) Accrual | |||
3.Current amount decreased | |||
(1) Disposal | |||
4.Ending balance | |||
IV. Book value | |||
1.Ending book value | 95,983,275.44 | 1,665,398.62 | 97,648,674.06 |
2. Opening book value | 216,718.43 | 1,903,312.71 | 2,120,031.14 |
Other explanation:
26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Item | Land use right | Patent | Non-patent technology | Trademark rights | Software usage rights | Forest use rights | Other | Shop use rights | Total |
I. Original book value | |||||||||
1.Opening balance | 633,437,630.19 | 47,245,918.89 | 184,073.32 | 40,593,816.24 | 22,859,104.98 | 7,537,784.90 | 3,610,487.37 | 755,468,815.89 | |
2.Current amount increased | 19,377,317.14 | 14,263,106.08 | 13,683,637.74 | 47,324,060.96 | |||||
(1) Purchase | 95,247.35 | 12,420,072.06 | 13,683,637.74 | 26,198,957.15 | |||||
(2) internal R&D | 1,843,034.02 | 1,843,034.02 | |||||||
(3) Increased by combination | 19,282,069.79 | 19,282,069.79 | |||||||
3.Current amount decreased | 13,317,665.00 | 15,690.33 | 13,333,355.33 | ||||||
(1) Disposal | 13,317,665.00 | 15,690.33 | 13,333,355.33 |
Other | |||||||||
4.Ending balance | 639,497,282.33 | 47,245,918.89 | 184,073.32 | 54,841,231.99 | 22,859,104.98 | 21,221,422.64 | 3,610,487.37 | 789,459,521.52 | |
II. Accumulated depreciation | |||||||||
1.Opening balance | 100,424,358.42 | 27,673,682.23 | 122,782.60 | 8,914,987.85 | 6,171,914.32 | 4,753,924.80 | 1,417,317.21 | 149,478,967.43 | |
2.Current amount increased | 17,614,753.33 | 1,747,485.96 | 11,750.16 | 6,989,717.95 | 772,669.00 | 2,789,302.93 | 108,005.40 | 30,033,684.73 | |
(1) Accrual | 16,505,320.29 | 1,747,485.96 | 11,750.16 | 6,989,717.95 | 772,669.00 | 2,789,302.93 | 108,005.40 | 28,924,251.69 | |
Other | 1,109,433.04 | 1,109,433.04 | |||||||
3.Current amount decreased | 6,141,950.88 | 6,141,950.88 | |||||||
(1) Disposal | 6,141,950.88 | 6,141,950.88 | |||||||
4.Ending balance | 111,897,160.87 | 29,421,168.19 | 134,532.76 | 15,904,705.80 | 6,944,583.32 | 7,543,227.73 | 1,525,322.61 | 173,370,701.28 | |
III. Impairment provision | |||||||||
1.Opening balance | 5,553,283.54 | 1,130,341.88 | 6,683,625.42 | ||||||
2.Current amount increased | |||||||||
(1) Accrual | |||||||||
3.Current amount decreased | |||||||||
(1) Disposal | |||||||||
4.Ending balance | 5,553,283.54 | 1,130,341.88 | 6,683,625.42 | ||||||
IV. Book value | |||||||||
1.Ending book value | 527,600,121.46 | 12,271,467.16 | 49,540.56 | 37,806,184.31 | 15,914,521.66 | 13,678,194.91 | 2,085,164.76 | 609,405,194.82 | |
2. Opening book value | 533,013,271.77 | 14,018,953.12 | 61,290.72 | 30,548,486.51 | 16,687,190.66 | 2,783,860.10 | 2,193,170.16 | 599,306,223.04 |
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end
(2) Land use rights without certificate of ownership
Unit: RMB/CNY
Item | Book value | Reasons for without the property certification |
Land use rights | 7,849,990.00 | Still in process |
Total | 7,849,990.00 |
Other explanation:
27. Expense on Research and Development
Unit: RMB/CNY
Item | Opening balance | Current amount increased | Current amount decreased | Ending balance | ||||
Internal development expenditure | Other | Confirmed as intangible assets | Transfer to current profit and loss | |||||
Total |
Other explanation
28. Goodwill
(1) Goodwill Original book value
Unit: RMB/CNY
The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
Formed by business combination | Dispose | |||||
Wuhan Jiacheng Biotechnology Co., Ltd | 1,953,790.56 | 1,953,790.56 | ||||
Yunnan Pu’er Tea Trading Center Co., Ltd. | 673,940.32 | 673,940.32 | ||||
Total | 673,940.32 | 1,953,790.56 | 2,627,730.88 |
(2) Goodwill impairment provision
Unit: RMB/CNY
The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Dispose | |||||
Yunnan Pu’er Tea Trading Center Co., Ltd. | 673,940.32 | 673,940.32 | ||||
Total | 673,940.32 | 673,940.32 |
Relevant information about the assets group or portfolio goodwill includedInstructions for goodwill impairments test process and key parameters (such as the forecast period growth rate, stable period growth
rate, profit rate, discount rate, and forecast period when estimating the present value of the future cash flow), and the method ofconfirming the impairment loss of goodwill:
Impact of goodwill impairment testOther explanationIn May 2016, Jufangyong Holdings, a sub-subsidiary of the Company, invested in the purchase of 15.00% equityin Pu’er Tea Trading Center held by Yunnan Hengfengxiang Investment Co., Ltd. After the completion of thepurchase, the Company has control over the Pu’er Tea Trading Center. The difference between the combined costand the fair value of net identifiable assets on the combining date formed goodwill of 673,940.32 yuan. As ofDecember 31, 2021, the full provision for impairment had been made.The Company invested in the purchase of 51.00% equity in Wuhan Jiacheng in August 2021. After the completionof the purchase, the Company has control over Wuhan Jiacheng. The difference between the combined cost andthe fair value of the net identifiable assets on the combining date formed goodwill of 1,953,790.56 yuan. TheCompany engaged Yinxin Appraisal Co., Ltd. to issue an appraisal report. The appraisal method was to conduct agoodwill test on the asset group containing goodwill, and calculate the recoverable amount of the asset group byusing the fair value minus the disposal cost of the asset group. After testing, there was no impairment in thegoodwill formed by the company’s acquisition of Wuhan Jiacheng at the end of the period.
29. Long-term expenses to be apportioned
Unit: RMB/CNY
Item | Opening balance | Current amount increased | Current amortization | Other decreased | Ending balance |
Improve expenditure for fix assets | 12,887,591.23 | 6,592,670.91 | 3,942,406.47 | 1,254,793.04 | 14,283,062.63 |
Decoration fee | 8,966,668.26 | 3,541,880.63 | 2,515,690.05 | 757,430.82 | 9,235,428.02 |
Improve expenditure for investment real estate | 4,285,771.94 | 418,918.00 | 179,183.16 | 4,242,368.01 | 283,138.77 |
Affiliated project of resident area in Wuyuan Ju Fang Yong | 96,739.87 | 26,383.56 | 70,356.31 | ||
Other | 5,495,553.71 | 2,272,924.88 | 1,569,666.31 | 1,275,591.56 | 4,923,220.72 |
Total | 31,732,325.01 | 12,826,394.42 | 8,233,329.55 | 7,530,183.43 | 28,795,206.45 |
Other explanation
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||
Deductible temporary differences | Deferred income tax asset | Deductible temporary differences | Deferred income tax asset | |
Impairment provision for assets | 62,056,367.05 | 15,139,642.20 | 67,113,321.86 | 16,501,454.23 |
Unrealized profits in internal transactions | 2,250,127.31 | 337,519.10 | 3,078,755.60 | 769,722.53 |
Deductible loss | 2,383,937.40 | 357,590.61 | ||
Deferred income | 53,846.20 | 13,461.55 | ||
Credit impairment loss | 99,371,735.40 | 24,694,673.56 | 96,768,909.47 | 24,063,313.81 |
Total | 166,062,167.16 | 40,529,425.47 | 167,014,833.13 | 41,347,952.12 |
(2) Deferred income tax liability without offset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Asset evaluation increment of enterprise combine under different control | 61,157,763.69 | 13,868,191.82 | 48,600,140.52 | 12,150,035.13 |
Total | 61,157,763.69 | 13,868,191.82 | 48,600,140.52 | 12,150,035.13 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax asset | 40,529,425.47 | 41,347,952.12 | ||
Deferred income tax liabilities | 13,868,191.82 | 12,150,035.13 |
(4) Details of uncertain deferred income tax assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Deductible temporary differences | 155,064,630.67 | 183,270,008.13 |
Deductible loss | 254,117,581.76 | 351,368,763.83 |
Total | 409,182,212.43 | 534,638,771.96 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Year | Ending amount | Opening amount | Note |
2021 | 23,943,774.18 | ||
2022 | 33,523,647.10 | 84,999,252.69 | |
2023 | 51,197,266.16 | 79,916,541.92 | |
2024 | 31,190,814.78 | 83,190,940.40 | |
2025 | 89,693,860.31 | 79,318,254.64 | |
2026 | 48,511,993.41 | ||
Total | 254,117,581.76 | 351,368,763.83 | -- |
Other explanation:
31. Other non-current asset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Prepaid for equipment | 1,329,101.00 | 1,329,101.00 | 611,965.84 | 611,965.84 | ||
Prepaid for system | 4,602,630.58 | 4,602,630.58 | 1,864,208.49 | 1,864,208.49 | ||
Total | 5,931,731.58 | 5,931,731.58 | 2,476,174.33 | 2,476,174.33 |
Other explanation:
32. Short-term loans
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Guaranteed Loan | 1,500,000.00 | |
Loan in credit | 503,266,782.25 | 110,318,727.12 |
Total | 504,766,782.25 | 110,318,727.12 |
Explanation on category of short-term loans:
(2) Overdue short-term loans without payment
RMB 0 short-term loans over due without paid at period-end, including follow major amount:
Unit: RMB/CNY
Borrower | Ending balance | Loan rate | Overdue time | Overdue interest |
Other explanation:
33. Tradable financial liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Including: | ||
Including: |
Other explanation:
34. Derivative financial liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
35. Note payable
Unit: RMB/CNY
Category | Ending balance | Opening balance |
Notes expired at year-end without paid was 0 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Trade accounts payable | 154,756,781.25 | 221,632,903.56 |
Account payable for engineering | 271,692,014.89 | 254,410,372.45 |
Other | 457,873.57 | 4,853,241.63 |
Total | 426,906,669.71 | 480,896,517.64 |
(2) Major accounts payable with age over one year
Unit: RMB/CNY
Item | Ending balance | Reasons of outstanding or carry-over |
Other explanation:
37. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
Item | Ending balance | Opening balance | |
Receipt of goods in advance | |||
Other | 2,379,891.67 | 3,376,262.66 | |
Total | 2,379,891.67 | 3,376,262.66 | 562,553.20 |
(2) Important account received in advance with account age over one year
Unit: RMB/CNY
Item | Ending balance | Reasons of outstanding or carry-over |
38. Contractual liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Sales price | 182,972,314.85 | 108,975,866.82 |
Total | 182,972,314.85 | 108,975,866.82 |
Amount and reasons for important changes of book value in the period
Unit: RMB/CNY
Item | Amount changed | Reasons of changes |
39. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
I. Short-term compensation | 243,040,453.26 | 357,526,761.34 | 297,985,402.23 | 302,581,812.37 |
II. After-service welfare-defined contribution plans | 16,738,931.80 | 33,874,531.43 | 33,215,894.73 | 17,397,568.50 |
III. Dismissed welfare | 735,174.60 | 821,414.36 | 829,914.36 | 726,674.60 |
Total | 260,514,559.66 | 392,222,707.13 | 332,031,211.32 | 320,706,055.47 |
(2) Short-term compensation
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Wage, bonus, allowance and subsidy | 234,356,069.74 | 320,069,646.54 | 259,154,922.72 | 295,270,793.56 |
2. Employees’ welfare | 156,952.35 | 12,606,158.85 | 12,366,354.78 | 396,756.42 |
3. Social insurance charges | 198,640.24 | 4,204,027.66 | 4,052,985.60 | 349,682.30 |
Including: medical insurance premium | 115,400.07 | 3,813,096.01 | 3,614,225.28 | 314,270.80 |
Industrial injury insurance premiums | 1,267.41 | 145,927.87 | 141,014.14 | 6,181.14 |
Maternity insurance premiums | 40,586.98 | 245,003.78 | 256,360.40 | 29,230.36 |
Other | 41,385.78 | 41,385.78 | ||
4. Housing public reserve | 61,858.47 | 15,030,720.05 | 15,092,578.52 | |
5. Trade union fee and education fee | 8,266,932.46 | 5,616,208.24 | 7,318,560.61 | 6,564,580.09 |
Total | 243,040,453.26 | 357,526,761.34 | 297,985,402.23 | 302,581,812.37 |
(3) Defined contribution plans
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Basic endowment insurance premiums | 393,107.74 | 18,116,088.73 | 18,509,196.47 | |
2. Unemployment insurance premiums | 975.41 | 133,523.02 | 125,795.48 | 8,702.95 |
3. Enterprise annuity | 16,344,848.65 | 15,624,919.68 | 14,580,902.78 | 17,388,865.55 |
Total | 16,738,931.80 | 33,874,531.43 | 33,215,894.73 | 17,397,568.50 |
Other explanation:
40. Taxes payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
VAT | 5,394,516.81 | 2,792,128.64 |
Enterprise income tax | 75,860,781.94 | 59,929,311.33 |
Personal income tax | 2,264,416.73 | 975,572.27 |
Urban maintenance and construction tax | 247,110.08 | 117,101.01 |
Deed tax | 664,227.84 | 664,227.84 |
House property tax | 1,310,817.90 | 1,041,691.54 |
Educational surtax | 203,981.23 | 84,670.40 |
Use tax of land | 214,536.03 | 191,383.02 |
Stamp tax | 648,290.86 | 1,066,139.48 |
Other | 4,908.73 | 42,509.76 |
Total | 86,813,588.15 | 66,904,735.29 |
Other explanation:
41. Other account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Dividend payable | 2,933,690.04 | 2,933,690.04 |
Other account payable | 373,673,508.95 | 394,392,029.46 |
Total | 376,607,198.99 | 397,325,719.50 |
(1) Interest payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Major overdue interest:
Unit: RMB/CNY
Borrower | Overdue amount | Overdue causes |
Other explanation:
(2) Dividend payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Common stock dividend | 2,933,690.04 | 2,933,690.04 |
Total | 2,933,690.04 | 2,933,690.04 |
Other explanation, including important dividend payable over one year without payment, disclose reasons for un-paid:
(3) Other account payable
1) By nature
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Engineering quality retention money and fund of tail | 1,436,175.56 | 737,356.67 |
Deposit and margin | 134,841,365.60 | 191,086,945.49 |
Intercourse funds and other | 201,486,678.66 | 191,229,002.98 |
Drawing expenses in advance | 35,909,289.13 | 11,338,724.32 |
Total | 373,673,508.95 | 394,392,029.46 |
2) Significant other account payable with over one year age
Unit: RMB/CNY
Item | Ending balance | Reasons of outstanding or carry-over |
Other explanationNil
42. Liability held for sale
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
43. Non-current liabilities due within one year
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Long-term loans due within one year | 108,955,105.34 | 104,225,183.07 |
Lease liabilities due within one year | 19,777,369.82 | 280,145.60 |
Total | 128,732,475.16 | 104,505,328.67 |
Other explanation:
44. Other current liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
VAT payable | 4,367,576.91 | 2,329,512.69 |
Other | 4,920,907.99 | |
Total | 4,367,576.91 | 7,250,420.68 |
Change of short-term bonds payable:
Unit: RMB/CNY
Bonds | Face value | Issuance date | Bonds term | Amount issued | Opening balance | Issued in the period | Accrual interest by face value | Premium and discount amortization | Paid in the period | Ending balance | |
Total | -- | -- | -- |
Other explanation:
45. Long-term loans
(1) Category
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Mortgage + guarantee | 730,521,692.22 | 841,864,531.75 |
Total | 730,521,692.22 | 841,864,531.75 |
Explanation on category of long-term loans:
Other explanation, including interest rate range:
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(2) Changes of bonds payable (not including the other financial instrument of preferred stock andperpetual capital securities that classify as financial liability)
Unit: RMB/CNY
Bonds | Face value | Issuance date | Bonds term | Amount issued | Opening balance | Issued in the period | Accrual interest by face value | Premium and discount amortization | Paid in the period | Ending balance | |
Total | -- | -- | -- |
(3) Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endChanges of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding financial instrument | Period-beginning | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value |
Basis for financial liability classification for other financial instrumentOther explanation
47. Lease liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Lease Payments | 110,058,216.03 | 2,520,375.75 |
Unrecognized financing charges | -10,107,102.46 | -400,344.61 |
Lease liabilities due within one year | -19,777,369.82 | -280,145.60 |
Total | 80,173,743.75 | 1,839,885.54 |
Other explanation
48. Long-term account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Special account payable | 17,266,921.98 | 16,126,146.20 |
Total | 17,266,921.98 | 16,126,146.20 |
(1) By nature
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
(2) Special account payable
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Depreciation fund for grain deposits | 16,126,146.20 | 151,129.78 | 16,277,275.98 | ||
Shenzhen Hospital Phase III Housing Expropriation Property Rights Exchange | 989,646.00 | 989,646.00 | |||
Total | 16,126,146.20 | 1,140,775.78 | 17,266,921.98 | -- |
Other explanation:
49. Long-term wage payable
(1) Long-term wage payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
Item | Current Period | Last Period |
Scheme assets:
Unit: RMB/CNY
Item | Current Period | Last Period |
Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
Item | Current Period | Last Period |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other explanation:
50. Accrual liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance | Causes |
External guarantee | 3,500,000.00 | 3,500,000.00 | |
Total | 3,500,000.00 | 3,500,000.00 | -- |
Other explanation, including relevant important assumptions and estimation: According to the civil judgment made by the ShenzhenIntermediate People’s Court, in the disputes over loan contract between Changzhou Shenbao Chacang Electronic Commerce Co., Ltd.and Shenzhen Agricultural Products Financing Guarantee Co., Ltd., the Company shall assume joint and several liabilities forrepayment of the debts of Changzhou Shenbao Chacang Electronic Commerce Co., Ltd. within the scope of 3.5 million yuan.
51. Deferred income
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | Causes |
Government grants | 100,710,038.32 | 5,754,418.83 | 13,334,920.47 | 93,129,536.68 | |
Total | 100,710,038.32 | 5,754,418.83 | 13,334,920.47 | 93,129,536.68 | -- |
Item with government grants involved:
Unit: RMB/CNY
Liability | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending balance | Assets-related/income related |
Intelligent management of grain depot based | 466,666.56 | 200,000.04 | 266,666.52 | Assets-related |
on mobile internet | ||||||||
Special funds for intelligent upgrading and transformation of grain warehouse “Grain Safety Project” | 10,922,083.35 | 4,634,999.96 | 6,287,083.39 | Assets-related | ||||
Government central government grant funds | 4,710,782.45 | 5,754,418.83 | 4,245,486.70 | 6,219,714.58 | Assets-related | |||
Base of further processing for tea and nature plants | 550,000.00 | 275,000.04 | 274,999.96 | Assets-related | ||||
Special fund for the development of strategic emerging industries in Shenzhen | 2,836,474.79 | 351,209.04 | 2,485,265.75 | Assets-related | ||||
Industrialization of instant tea powder | 1,691,244.91 | 196,445.88 | 1,494,799.03 | Assets-related | ||||
Enterprise technology center is a municipal R&D center. Subsidies for industrial technological advancement | 1,579,251.97 | 204,024.48 | 1,375,227.49 | Assets-related | ||||
Grant for key technology research and industrialization of instant tea powder | 124,521.17 | 14,244.96 | 110,276.21 | Assets-related | ||||
Construction amount for 50 tons for clearly processing for Mingyou tea | 249,999.94 | 125,000.04 | 124,999.90 | Assets-related | ||||
Subsidy for supply system construction of | 350,000.00 | 200,000.00 | 150,000.00 | Assets-related |
agricultural products | ||||||||
Construction of O2O community sales service system for high quality grain and oil based on B2C E-commerce platform | 1,712,259.12 | 32,384.04 | 1,679,875.08 | Assets-related | ||||
Industrialization of Doximi E-commerce platform | 978,281.14 | 736,420.56 | 241,860.58 | Assets-related | ||||
Agricultural product safety testing project of the special fund for agricultural development - Central investment fund | 342,000.00 | 342,000.00 | Assets-related | |||||
Special fund for agricultural development - agricultural product safety testing project- capacity building of the third party inspection institution expansion evaluation | 164,000.00 | 164,000.00 | Assets-related | |||||
Grain storage project of Dongguan Shenliang Logistics Co., Ltd. - Storage A | 7,717,903.59 | 262,257.12 | 7,455,646.47 | Assets-related | ||||
Phase II of grain storage project of | 30,906,098.48 | 1,031,300.52 | 29,874,797.96 | Assets-related |
Dongguan Shenliang Logistics Co., Ltd.- Storage B | ||||||||
Grain, oil and food headquarters and innovative public service platform of Dongguan Shenliang Logistics Co., Ltd. | 18,000,000.00 | 18,000,000.00 | Assets-related | |||||
Construction of 450000 ton silos and 60000 ton film silos -CDE warehouse. Gas storage bin | 17,354,624.65 | 266,300.89 | 17,088,323.76 | Assets-related | ||||
Project grants for years for agricultural district, Xihu Zone | 53,846.20 | 53,846.20 | Assets-related | |||||
Total | 100,710,038.32 | 5,754,418.83 | 13,334,920.47 | 93,129,536.68 |
Other explanation:
52. Other non-current liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other explanation:
53. Share capital
Unit: RMB/CNY
Opening balance | Increased (decreased) in this year +,- | Ending balance | |||||
New shares issued | Bonus shares | Shares converted from public reserve | Other | Subtotal | |||
Total shares | 1,152,535,254.00 | 1,152,535,254.00 |
Other explanation:
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
Unit: RMB/CNY
Outstanding financial instrument | Period-beginning | Current increased | Current decreased | Period-end | ||||
Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value |
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other explanation:
55. Capital public reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Capital premium (Share capital premium) | 1,413,996,347.50 | 163,253,072.71 | 1,250,743,274.79 | |
Other capital reserve | 8,896,381.86 | 8,896,381.86 | ||
Total | 1,422,892,729.36 | 163,253,072.71 | 1,259,639,656.65 |
Other instructions, including changes in the current period, reasons for the change: Capital public reserve decreased in the Periodmainly due to the write-down of capital premium for the acquisition of 49% minority interest in Dongguan Logistics
56. Treasury stock
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Other explanation, including changes and reasons for changes:
57. Other comprehensive income
Unit: RMB/CNY
Item | Opening | Current Period | Ending |
balance | Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | balance |
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment forthe arbitraged items:
58. Reasonable reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Production safety fee | 1,283,502.97 | 1,283,502.97 | ||
Total | 1,283,502.97 | 1,283,502.97 |
Other explanation, including changes and reasons for changes:
59. Surplus public reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Statutory surplus reserves | 382,367,575.37 | 23,207,915.05 | 405,575,490.42 | |
Total | 382,367,575.37 | 23,207,915.05 | 405,575,490.42 |
Other explanation, including changes and reasons for changes:
60. Retained profit
Unit: RMB/CNY
Item | Current period | Last period |
Retained profit at the end of the previous year before adjustment | 1,637,536,441.03 | 1,495,135,080.60 |
Total retained profit at the beginning of the previous year before adjustment | 1,637,536,441.03 | 1,495,135,080.60 |
Add: net profit attributable to shareholder of parent company | 428,720,226.09 | 405,088,385.54 |
Less: withdrawal of legal surplus reserve | 23,207,915.05 | 32,179,974.31 |
Common stock dividends payable | 230,507,050.80 | 230,507,050.80 |
Retained profit at period-end | 1,812,541,701.27 | 1,637,536,441.03 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retainedprofits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and operating cost
Unit: RMB/CNY
Item | Current period | Last period | ||
Income | Cost | Income | Cost | |
Main business | 10,131,502,397.87 | 8,854,262,225.62 | 11,877,315,782.17 | 10,724,158,547.46 |
Other business | 8,061,312.24 | 5,023,083.81 | 7,211,724.17 | 854,385.88 |
Total | 10,139,563,710.11 | 8,859,285,309.43 | 11,884,527,506.34 | 10,725,012,933.34 |
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes √No
Information relating to revenue:
Unit: RMB/CNY
Category | Branch 1 | Branch 2 | Total | |
Product Types | ||||
Including: | ||||
Classification by business area | ||||
Including: | ||||
Market or customer type | ||||
Including: | ||||
Contract Types | ||||
Including: |
Classification by time of goods transfer | ||||
Including: | ||||
Classification by contract duration | ||||
Including: | ||||
Classification by sales channel | ||||
Including: | ||||
Total |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 182,972,314.85 yuan, among them, 182,972,314.85 yuan of revenue isexpected to be recognized in 1 YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected tobe recognized in YEAR.Other explanation
62. Tax and surcharges
Unit: RMB/CNY
Item | Current period | Last period |
Consumption tax | 1,211,971.88 | 834,166.18 |
Urban maintenance and construction tax | 948,922.05 | 605,281.65 |
House property tax | 9,323,401.45 | 6,564,972.11 |
Use tax of land | 2,211,825.47 | 1,683,656.55 |
Vehicle and vessel use tax | 13,661.76 | 14,094.32 |
Stamp duty | 2,926,117.62 | 2,189,511.56 |
Other | 73,180.88 | 485,520.04 |
Total | 16,709,081.11 | 12,377,202.41 |
Other explanation:
63. Sales expenses
Unit: RMB/CNY
Item | Current period | Last period |
Labor and social security benefits | 94,568,349.97 | 79,782,639.14 |
Port terminal fee | 44,060,197.04 | 37,296,574.33 |
Warehousing, loading and unloading fees | 33,509,528.43 | 27,375,876.53 |
Depreciation and amortization of long-term assets | 31,076,514.02 | 12,947,254.76 |
Equivalent loss for low value perishable goods | 11,129,938.10 | 6,610,770.31 |
Utilities and office expenses | 8,357,718.26 | 5,481,335.39 |
After-sale services | 5,522,682.72 | 5,706,789.04 |
Rental fee | 5,099,681.66 | 4,599,158.22 |
Advertisement charge | 2,164,753.84 | 844,284.38 |
Travel expenses | 2,154,287.30 | 2,364,534.09 |
Business hospitality expenses | 1,685,748.60 | 1,532,069.82 |
Property insurance premium | 978,519.97 | 707,503.79 |
Logistics transportation fee | 666,951.32 | 4,527,232.81 |
Sales commission | 556,125.11 | 1,749,680.45 |
Automobile expenses | 466,576.87 | 671,397.95 |
Other | 8,218,900.46 | 9,107,741.29 |
Total | 250,216,473.67 | 201,304,842.30 |
Other explanation:
64. Administration expenses
Unit: RMB/CNY
Item | Current period | Last period |
Labor and social security benefits | 229,304,676.04 | 208,921,378.42 |
Depreciation and amortization of long-term assets | 38,977,012.47 | 28,899,326.56 |
Office expenses | 9,301,150.76 | 13,279,553.23 |
Intermediary agency fee | 6,175,091.19 | 6,189,913.85 |
Rental | 2,339,027.66 | 4,231,857.35 |
Business hospitality | 1,381,214.23 | 2,671,957.93 |
Relocation and shutdown costs | 1,018,858.86 | 2,040,350.03 |
Travel expenses | 1,580,964.19 | 1,667,900.78 |
Repair cost | 496,196.40 | 1,576,305.28 |
Communication fee | 1,443,744.11 | 1,265,413.26 |
Vehicle usage fee | 1,269,178.88 | 958,223.56 |
Low-value consumables | 110,748.00 | 519,410.79 |
Other | 7,337,722.55 | 12,861,862.87 |
Total | 300,735,585.34 | 285,083,453.91 |
Other explanation:
65. R&D expenses
Unit: RMB/CNY
Item | Current period | Last period |
Labor and social security benefits | 12,072,003.58 | 9,123,103.91 |
Depreciation cost | 3,817,723.52 | 3,008,677.44 |
Logistics consumption | 1,230,299.67 | 1,502,184.44 |
Office expenses | 108,480.49 | 1,057,176.90 |
Maintenance and inspection fee | 496,210.10 | 573,724.23 |
Travel expenses | 835,159.10 | 199,563.72 |
Automobile expenses | 38,651.46 | 36,289.77 |
Intermediary fees | 65,949.62 | 8,161.30 |
Other | 2,025,016.59 | 1,109,062.54 |
Total | 20,689,494.13 | 16,617,944.25 |
Other explanation:
66. Financial expenses
Unit: RMB/CNY
Item | Current period | Last period |
Interest expenses | 57,185,980.70 | 16,958,179.81 |
Including: Lease Liability Interest Expenses | 4,186,156.64 | |
Less: Interest income | 2,369,604.37 | 3,529,030.44 |
Exchange loss | 264,807.96 | 304,160.59 |
Handling fee | 1,287,402.39 | 1,174,453.98 |
Total | 56,368,586.68 | 14,907,763.94 |
Other explanation:
67. Other income
Unit: RMB/CNY
Sources | Current Period | Last Period |
Government subsidy | 15,739,392.31 | 18,386,517.09 |
Other | 228,909.70 | |
Total | 15,739,392.31 | 18,615,426.79 |
68. Investment income
Unit: RMB/CNY
Item | Current period | Last period |
Long-term equity investment income measured by equity | 275,295.65 | 2,065,265.42 |
Investment income from disposal of long-term equity investment | 2,288,570.32 | |
Tradable financial assets investment income during the holding period | 3,997,573.61 | 12,918,317.97 |
Dividend income from other equity instrument investments during the holding period | 16,735.24 | 129,491.67 |
Total | 4,289,604.50 | 17,401,645.38 |
Other explanation:
69. Net exposure hedge gains
Unit: RMB/CNY
Item | Current period | Last period |
Other explanation:
70. Income of fair value changes
Unit: RMB/CNY
Sources | Current Period | Last Period |
Tradable financial assets | 299,292.76 | -544,403.21 |
Total | 299,292.76 | -544,403.21 |
Other explanation:
71. Credit impairment loss
Unit: RMB/CNY
Item | Current period | Last period |
Loss of bad debt of other account receivable | -836,446.94 | 2,843.82 |
Loss of bad debt of account receivable | 2,991,334.49 | 1,009,844.21 |
Total | 2,154,887.55 | 1,012,688.03 |
Other explanation:
72. Assets impairment loss
Unit: RMB/CNY
Item | Current period | Last period |
II. Inventory price drop loss and contract performance cost impairment loss | -184,486,526.84 | -210,190,362.81 |
Total | -184,486,526.84 | -210,190,362.81 |
Other explanation:
73. Income from assets disposal
Unit: RMB/CNY
Sources | Current Period | Last Period |
Profit and loss on disposal of non current assets | 29,437,150.82 | -47,312.84 |
Total | 29,437,150.82 | -47,312.84 |
74. Non-operating income
Unit: RMB/CNY
Item | Current period | Last period | Amount included in the current non-recurring profit and loss |
Government grants | 132,228.97 | 116,855.22 | 132,228.97 |
Profit | 3,926.51 | ||
Liquidated damages compensation income | 1,028,555.00 | 2,268,309.26 | 1,028,555.00 |
Government demolition subsidy | 11,277,891.00 | 11,277,891.00 | |
Other | 2,201,990.56 | 1,536,846.85 | 2,201,990.56 |
Total | 14,640,665.53 | 3,925,937.84 | 14,640,665.53 |
Government grants reckoned into current gains/losses:
Unit: RMB/CNY
Grants | Issuing subject | Issuing cause | Property type | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Amount of this period | Amount of last period | Assets related/Income related |
Other explanation:
75. Non-operating expenditure
Unit: RMB/CNY
Item | Current period | Last period | Amount included in the current non-recurring profit and loss |
External donations | 151,077.90 | 681,235.18 | 151,077.90 |
Penalty expenses (and liquidated damages) | 65,275.00 | 65,275.00 | |
Inventory loss | 114,032.24 | ||
Loss of scrap from non-current assets | 85,970.25 | 168,726.06 | 85,970.25 |
Compensation | 126,800.00 | 126,800.00 | |
Other | 1,076,240.78 | 590,559.34 | 1,076,240.78 |
Total | 1,505,363.93 | 1,554,552.82 | 1,505,363.93 |
Other explanation:
76. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
Item | Current period | Last period |
Current income tax expenses | 79,091,857.01 | 56,749,544.35 |
Deferred income tax expenses | 725,783.61 | -2,678,958.25 |
Total | 79,817,640.62 | 54,070,586.10 |
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMB/CNY
Item | Current Period |
Total profit | 516,128,282.45 |
Income tax expenses calculated by statutory tax rate | 129,032,070.61 |
Impact from different tax rate apply with the subsidiary | -443,855.61 |
Effect of adjusting income tax in the previous period | 3,530,614.96 |
Impact of non taxable income | -145,240,834.05 |
Impact on cost, expenses and losses that unable to deducted | 108,341,079.30 |
Impact of the deductible loss on deferred income tax assets not recognized in the prior period of use | -23,630,421.52 |
Unrecognized impacts of deductible temporary differences or deductible losses on deferred income tax assets in the period | 10,556,804.45 |
Impact on R&D costs deduction | -2,327,817.52 |
Income tax expenses | 79,817,640.62 |
Other explanation
77. Other comprehensive income
Found more in annotations
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
Unit: RMB/CNY
Item | Current period | Last period |
Intercourse funds and deposit | 468,799,201.24 | 337,317,609.85 |
Government grants | 8,291,119.64 | 17,576,438.98 |
Interest income | 2,369,604.37 | 3,529,030.44 |
Other | 2,744,100.71 | |
Total | 479,459,925.25 | 361,167,179.98 |
Note of cash paid with other operating activities concerned:
(2) Cash paid with other operating activities concerned
Unit: RMB/CNY
Item | Current period | Last period |
Intercourse funds and deposit | 491,065,095.21 | 183,890,826.39 |
Operating daily expenses | 143,556,540.75 | 166,210,083.22 |
Other | 1,699,332.12 | |
Total | 634,621,635.96 | 351,800,241.73 |
Note of cash paid with other operating activities concerned:
(3) Cash received with other investment activities concerned
Unit: RMB/CNY
Item | Current period | Last period |
Performance compensation | 337,500.00 | |
Total | 337,500.00 |
Note of cash received with other investment activities concerned:
(4) Cash paid related with investment activities
Unit: RMB/CNY
Item | Current period | Last period |
Other | 6,600.00 | |
Total | 6,600.00 |
Note of cash paid related with investment activities:
(5) Cash received with other financing activities concerned
Unit: RMB/CNY
Item | Current period | Last period |
Note of cash received with other financing activities concerned:
(6) Other cash paid related with financing activities
Unit: RMB/CNY
Item | Current period | Last period |
Operating lease rent paid | 20,527,342.78 | |
Other | 58,702.23 | |
Total | 20,527,342.78 | 58,702.23 |
Note of other cash paid related with financing activities:
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information | Current period | Last period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | 436,310,641.83 | 403,771,846.45 |
Add: Impairment provision for assets | 182,331,639.29 | 209,177,674.78 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 91,236,937.27 | 78,978,606.42 |
Depreciation of right-of-use assets | 18,517,985.61 | |
Amortization of intangible assets | 28,924,251.69 | 23,305,749.14 |
Amortization of long-term pending expenses | 8,233,329.55 | 5,929,229.59 |
Loss from disposal of fixed assets, intangible assets and other long-term assets (income is listed with “-”) | -29,437,150.82 | 47,312.84 |
Losses on scrapping of fixed assets (income is listed with “-“) | 85,970.25 | 168,726.06 |
Loss from change of fair value (income is listed with “-“) | -299,292.76 | 544,403.21 |
Financial expenses (income is listed with “-”) | 57,450,788.66 | 17,262,340.40 |
Investment loss (income is listed with “-”) | -4,289,604.50 | -17,401,645.38 |
Decrease of deferred income tax assets (increase is listed with “-”) | 1,043,335.56 | -2,265,241.16 |
Decrease of deferred income tax asset( (increase is listed with “-”) | -317,551.95 | -413,717.09 |
Decrease of inventory (increase is listed with “-”) | -227,050,518.73 | -358,984,132.03 |
Decrease of operating receivable accounts (increase is listed with “-”) | -149,494,290.67 | 128,157,029.48 |
Increase of operating payable accounts (decrease is listed with “-”) | 27,149,559.26 | -201,749,960.44 |
Other | ||
Net cash flow arising from operating activities | 440,396,029.54 | 286,528,222.27 |
2. Material investment and financing not involved in cash flow | -- | -- |
Conversion of debt into capital | ||
Switching Company bonds due within one year |
financing lease of fixed assets | ||
3. Net change of cash and cash equivalents: | -- | -- |
Balance of cash at period end | 49,370,080.20 | 190,494,225.94 |
Less: Balance of cash at year-begin | 190,494,225.94 | 154,954,757.85 |
Add: Balance at year-end of cash equivalents | ||
Less: Balance at year-begin of cash equivalents | ||
Net increasing of cash and cash equivalents | -141,124,145.74 | 35,539,468.09 |
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
Amount | |
Cash or cash equivalents paid in the current period for business combinations that occurred in the current period | 21,675,000.00 |
Including: | -- |
Wuhan Jiacheng Biotechnology Co., Ltd | 21,675,000.00 |
Less: Cash and cash equivalents held by the company at the date of purchase | 5,162,794.04 |
Including: | -- |
Wuhan Jiacheng Biotechnology Co., Ltd | 5,162,794.04 |
Including: | -- |
Net cash paid to acquire subsidiaries | 16,512,205.96 |
Other explanation:
(3) Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
Amount | |
Including: | -- |
Including: | -- |
Including: | -- |
Other explanation:
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item | Ending balance | Opening balance |
I. Cash | 49,370,080.20 | 190,494,225.94 |
Including: Cash on hand | 29,370.19 | 62,642.11 |
Bank deposit available for payment at any time | 49,133,969.39 | 189,169,821.01 |
Other monetary fund available for payment at any time | 206,740.62 | 1,261,762.82 |
III. Balance of cash and cash equivalent at period-end | 49,370,080.20 | 190,494,225.94 |
Other explanation:
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Assets with ownership or use right restricted
Unit: RMB/CNY
Item | Ending book value | Reasons for restriction |
Money funds | 1,039,843.45 | Guarantee deposit and credit deposit, etc. |
Fixed assets | 508,407,161.32 | According to the long-term loan mortgage contract signed by Dongguan Logistics Company, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics Company has mortgaged the real estate property rights of the structures of Yue (2020) Dongguan PropertyRight No. 0127118, Yue (2020) Dongguan PropertyRight No. 0127119,Yue (2020) Dongguan PropertyRight No. 0127120, and Yue (2020) Dongguan PropertyRight No.0119705 at No. 10,Jingang South Road, Machong Town, Dongguan City and other aground buildings as loan collateral. |
Intangible assets | 44,245,302.46 | According to the long-term loan mortgage contract signed by Dongguan Logistics Company, a subsidiary of the Company, with Shenzhen Branch of Agricultural Development Bank and Huizhou Zhongkai Sub-branch of HSBC, Dongguan Logistics Company has mortgaged the real estate property rights of the structures of Yue (2020) Dongguan PropertyRight No. 0127118, Yue (2020) Dongguan PropertyRight No. 0127119,Yue (2020) Dongguan PropertyRight No. 0127120, and Yue (2020) Dongguan PropertyRight No.0119705 at No. 10,Jingang South Road, Machong Town, Dongguan City and other aground buildings as loan collateral. |
Intangible assets | 33,096,312.71 | According to the loan contract Yue DG2017 NGDZ No. 006 signed by Dongguan Food Industrial Park, a subsidiary of the Company, with Bank of Communications Co., Ltd., Dongguan Branch, Dongguan Food Industrial Park has mortgaged its two pieces of land "DFGY (2009) DT No. 190" and "Yue (2020) Dongguan Real Estate Right No. 0321771" to the Bank of Communications Co., Ltd., Dongguan Branch as loan collateral. |
Intangible assets | 35,002,719.11 | According to the long-term loan mortgage contract signed by Dongguan Logistics, a subsidiary of the Company, with Dongguan Branch of CMB, Dongguan Logistics has mortgaged the real estate property rights of the structures of Yue (2016) Dongguan Property Right No. 0028527 at No. 10, Jingang South Road, Machong Town, Dongguan City to Dongguan Branch of CMB. |
Total | 621,791,339.05 | -- |
Other explanation:
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
Monetary fund | -- | -- | 704,345.07 |
Including: USD | 78,917.11 | 6.3757 | 503,151.82 |
EURO | 4,005.01 | 7.2197 | 28,914.97 |
HKD | 210,712.18 | 0.8176 | 172,278.28 |
Account receivable | -- | -- | 1,514,120.13 |
Including: USD | 184,564.85 | 6.3757 | 1,176,730.11 |
EURO | |||
HKD | 412,659.03 | 0.8176 | 337,390.02 |
Long-term loans | -- | -- | |
Including: USD | |||
EURO | |||
HKD |
Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √ Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitativeinformation for the arbitrage risks:
84. Government subsidies
(1) Government subsidies
Unit: RMB/CNY
Category | Amount | Item | Amount reckoned into current gains/losses |
Government subsidies related to assets | 93,129,536.68 | Deferred income | 13,334,920.47 |
Government subsidies related to income | 2,404,471.84 | Other income | 2,404,471.84 |
Government subsidies related to income | 132,228.97 | Non-operating income | 132,228.97 |
Total | 95,666,237.49 | Total | 15,871,621.28 |
(2) Government subsidies rebate
□ Applicable √ Not applicable
Other explanation:
85. Other
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control
Unit: RMB/CNY
Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Wuhan Jiacheng Biotechnology Co., Ltd | 2021-09-01 | 21,675,000.00 | 51.00% | Purchase | 2021-09-01 | Acquiring the control | 17,139,943.75 | 2,854,540.09 |
Other explanation:
(2) Combination cost and goodwill
Unit: RMB/CNY
Consolidation cost | Wuhan Jiacheng Biotechnology Co., Ltd |
--Cash | 21,675,000.00 |
--Fair value of non-cash assets | |
--Fair value of debts issued or assumed | |
--Fair value of equity securities issued | |
-- Fair value of contingent consideration | |
--Fair value of the equity prior to the purchasing date | |
--Other | |
Total combination cost | 21,675,000.00 |
Less: shares of fair value of identifiable net assets acquired | 19,721,209.44 |
Goodwill/merger cost is less than the shares of fair value of identifiable net assets acquired | 1,953,790.56 |
Determination method for fair value of the combination cost and contingent consideration and changes:
Main reasons for large goodwill resulted:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
Wuhan Jiacheng Biotechnology Co., Ltd | ||
Fair value on purchasing date | Book value on purchasing date | |
Assets: | 87,498,122.95 | 73,926,732.04 |
Monetary funds | 5,162,794.04 | 5,162,794.04 |
Account receivable | 2,043,101.35 | 2,043,101.35 |
Inventory | 496,006.81 | 1,276,140.82 |
Fixed assets | 8,165,252.61 | 7,169,405.66 |
Intangible assets | 7,354,818.84 | 7,354,818.84 |
Prepayments | 18,754,959.72 | 13,690,372.35 |
Other receivables | 27,525,965.98 | 27,235,778.94 |
Construction in progress | 17,493,110.60 | 9,474,226.04 |
Other assets | 502,113.00 | 520,094.00 |
Liability: | 48,829,084.83 | 46,793,376.19 |
Loan | ||
Account payable |
Deferred tax liabilities | 2,035,708.64 | |
Other liabilities | 46,793,376.19 | 46,793,376.19 |
Net assets | 38,669,038.12 | 27,133,355.85 |
Less: Minority interests | 18,947,828.68 | 13,295,344.37 |
Net assets acquired | 19,721,209.44 | 13,838,011.48 |
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other explanation
2. Combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
Acquiree | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other explanation:
(2)Combination cost
Unit: RMB/CNY
Consolidation cost |
--Cash | |
-- Book value of non-cash assets | |
- Book value of debts issued or assumed | |
-- The face value of the equity securities issued | |
--Contingent consideration |
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the assets and liability of the combined party on combination date
Unit: RMB/CNY
Consolidation date | End of last period | |
Assets: | ||
Monetary funds | ||
Account receivable | ||
Inventory | ||
Fixed assets | ||
Intangible assets | ||
Liability: | ||
Loan | ||
Account payable | ||
Net assets | ||
Less: Minority interests | ||
Net assets acquired |
Contingent liability of the combined party bear during combination:
Other explanation:
3. Reverse purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listedcompany and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction:
4. Disposal Subsidiary
Whether there is a subsidiary disposal on one time, which is loss control of rights
□Yes √No
Whether there is a subsidiary disposal by steps through multiple trading and loss control of rights in the period
□Yes √No
5. Other reasons for consolidation range changed
Consolidation scope changes caused by other reasons (eg, newly establish subsidiaries, liquidate subsidiaries, etc.) and the relatedcircumstances:
Dongguan Shenliang Hualian Grain & Oil Trading Co., Ltd newly established in the Period, the Heilongjiang HongxinglongNongken Shenxin Cereals Industrial Park Co., ltd and Shenzhen Shenbao Property Management Co., Ltd were deregister.
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary | Main place of operation | Registration place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
Shenbao Huacheng | Shenzhen City | Shenzhen City | Manufacturing | 100.00% | Establishment | |
Wuyuan Ju Fang Yong | Shangrao City | Shangrao City | Manufacturing | 100.00% | Establishment | |
Shenbao Tea Culture | Shenzhen City | Shenzhen City | Commercial trade | 100.00% | Establishment | |
Ju Fang Yong Trading | Hangzhou City | Hangzhou City | Wholesale business | 60.00% | Establishment | |
Ju Fang Yong Holding | Hangzhou City | Hangzhou City | Comprehensive | 100.00% | Establishment | |
Fuhaitang Catering | Hangzhou City | Hangzhou City | Catering industry | 100.00% | Establishment | |
Fuhaitang Ecological | Hangzhou City | Hangzhou City | Tea planting, production and sales | 100.00% | Combine not under the same control | |
Shenbao Rock Tea | Wuyishan City | Wuyishan City | Manufacturing | 100.00% | Establishment | |
Pu'er Tea Supply Chain | Pu’er City | Pu’er City | Wholesale business | 100.00% | Establishment | |
Shenbao Food | Huizhou City | Huizhou City | Wholesale business | 100.00% | Establishment | |
Pu’er Tea | Pu’er City | Pu’er City | Service | 55.00% | Establishment |
Trading Center | industry | |||||
Shenbao Investment | Shenzhen City | Shenzhen City | Investment management | 100.00% | Establishment | |
Shenbao Food | Huizhou City | Shenzhen City | Manufacturing | 100.00% | Establishment | |
Huizhou Shenbao | Huizhou City | Huizhou City | Comprehensive | 100.00% | Establishment | |
Shenbao Technology | Shenzhen City | Shenzhen City | Development, consulting and transfer of technology | 100.00% | Establishment | |
Shenbao Industry & Trade | Huizhou City | Shenzhen City | Wholesale business | 100.00% | Establishment | |
SZCG | Shenzhen City | Shenzhen City | Grain & oil trading | 100.00% | Combine under the same control | |
Hualian Grain & Oil | Shenzhen City | Shenzhen City | Grain & oil trading | 100.00% | Combine under the same control | |
Shenzhen Flour | Shenzhen City | Shenzhen City | Flour processing | 100.00% | Combine under the same control | |
Shenliang Quality Inspection | Shenzhen City | Shenzhen City | Inspection | 100.00% | Combine under the same control | |
Hainan Grain and Oil | Haikou City | Haikou City | Feed production | 100.00% | Combine under the same control | |
Doximi | Shenzhen City | Shenzhen City | E-commerce | 100.00% | Combine under the same control | |
Big Kitchen | Shenzhen City | Shenzhen City | Sales and processing of grain ,oil and products | 70.00% | Combine under the same control | |
Yingkou Storage | Yingkou City | Yingkou City | Storage | 100.00% | Combine under the same control | |
Cold-Chain Logistic | Shenzhen City | Shenzhen City | Fresh food management | 100.00% | Combine under the same |
on-line | control | |||||
Shenliang Property | Shenzhen City | Shenzhen City | Real estate development and property management | 100.00% | Combine under the same control | |
International Food | Dongguan City | Dongguan City | Port operation, food production | 100.00% | Combine under the same control | |
Dongguan Grain and Oil | Dongguan City | Dongguan City | Food production | 100.00% | Combine under the same control | |
Dongguan Logistics | Dongguan City | Dongguan City | Storage, logistics | 49.00% | 51.00% | Combine under the same control |
Shuangyashan | Shuangyashan City | Shuangyashan City | Construction of food base and development of related complementary facility | 51.00% | Combine under the same control | |
Shenliang Hongjun | Shenzhen City | Shenzhen City | Catering | 51.00% | Establishment | |
Dongguan Hualian | Dongguan City | Dongguan City | Grain and oil trade | 100.00% | Establishment | |
Wuhan Jiacheng | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
Hubei Jiacheng | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
Wuhan Hongqu | Wuhan City | Wuhan City | Food production | 51.00% | Combine not under the same control | |
Macheng Jingtian | Macheng City | Macheng City | Food production | 51.00% | Combine not under the same control |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
Major structured entity included in consolidates statement:
Basis of termination of agent or consignor:
Other explanation:
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
Big Kitchen | 30% | 611,945.78 | 1,131,200.00 | 4,328,008.34 |
Explanation on holding ratio different from the voting right ratio for minority shareholders:
Other explanation:
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Subsidiary | Ending balance | Opening balance | ||||||||||
Current assets | Non current assets | Total assets | Current liabilities | Non current liabilities | Total liabilities | Current assets | Non current assets | Total assets | Current liabilities | Non current liabilities | Total liabilities | |
Big Kitchen | 159,526,005.38 | 5,490,342.50 | 165,016,347.88 | 149,310,334.72 | 1,279,252.02 | 150,589,586.74 | 139,153,404.92 | 4,238,838.61 | 143,392,243.53 | 127,234,801.67 | 127,234,801.67 |
Unit: RMB/CNY
Subsidiary | Current Period | Last Period | ||||||
Operating revenue | Net profit | Total comprehensive income | Cash flow from operation activity | Operating revenue | Net profit | Total comprehensive income | Cash flow from operation activity | |
Big Kitchen | 323,458,605.38 | 2,039,819.28 | 2,039,819.28 | 358,869.31 | 305,826,010.58 | 3,932,882.04 | 3,932,882.04 | 8,165,888.96 |
Other explanation:
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
(5) Financial or other supporting offers to the structured entity included in consolidated financial statementOther explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
Dongguan Logistics | |
Purchase cost/disposal consideration | |
--Cash | 321,680,000.00 |
--Fair value of non-cash assets | |
Purchase cost/total disposal consideration | 321,680,000.00 |
Less: Subsidiary's share of net assets calculated based on the proportion of acquired/disposed equity | 158,426,927.29 |
Difference | 163,253,072.71 |
Including: Adjust the capital reserve | 163,253,072.71 |
Adjusted surplus reserve | |
Adjusted undistributed profit |
Other explanation
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture/Associated enterprise | Main place of operation | Registration place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
Directly | Indirectly | |||||
Zhuhai Hengxing Feed Industrial Co., Ltd. | Zhuhai | Zhuhai | Aquatic fee and animal fee | 40.00% | Equity method | |
Shenliang Intelligent Wulian Equity Investment Fund | Shenzhen | Shenzhen | Equity investment; investment consultant | 49.02% | Equity method |
Description of the percentage of shareholding in joint ventures or associates different from the percentage of voting rights:
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold:
(2) Main financial information of the important joint venture
Unit: RMB/CNY
(Shenzhen)PartnershipEnterprise(Limited)
Ending balance/Current period | Opening balance/Last period | |||
Zhuhai Hengxing Feed Industrial Co., Ltd. | Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | Zhuhai Hengxing Feed Industrial Co., Ltd. | Shenliang Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) | |
Current assets | 109,747,137.54 | 20,142,644.00 | 98,242,527.52 | 20,459,246.10 |
Including: cash and cash equivalent | ||||
Non current assets | 26,046,337.28 | 36,989,582.89 | 29,365,806.23 | 33,102,244.01 |
Total assets | 135,793,474.82 | 57,132,226.89 | 127,608,333.75 | 53,561,490.11 |
Current liabilities | 56,918,240.71 | 44,972,658.51 | ||
Non current liabilities | 445,371.69 | 537,345.69 | ||
Total liabilities | 57,363,612.40 | 45,510,004.20 | ||
Minority's interest | ||||
Shareholders' equity attributable to the parent company | 78,429,862.42 | 57,132,226.89 | 82,098,329.55 | 53,561,490.11 |
Share of net assets calculated by shareholding ratio | 31,371,944.97 | 28,006,217.62 | 32,839,331.82 | 26,255,842.45 |
Adjustment items | 162,707.80 | -174.47 | 162,707.80 | -174.47 |
--Goodwill | ||||
--Unrealized profit of internal trading | ||||
-- Other | 162,707.80 | -174.47 | 162,707.80 | -174.47 |
Book value of equity investment in joint venture | 31,534,652.77 | 28,006,043.15 | 33,002,039.62 | 26,255,667.98 |
Fair value of the equity investment of joint |
ventures with public offers concerned | ||||
Operating income | 764,877,371.22 | 617,635,043.97 | ||
Financial expenses | ||||
Income tax expenses | ||||
Net profit | -978,023.06 | 3,570,736.78 | 3,413,330.99 | 656,353.79 |
Net profit of discontinuing operation | ||||
Other comprehensive income | ||||
Total comprehensive income | -978,023.06 | 3,570,736.78 | 3,413,330.99 | 656,353.79 |
Dividends received from joint venture in the year |
Other explanation
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current Period | Opening balance/Last Period | |
Current assets | ||
Non current assets | ||
Total assets | ||
Current liabilities | ||
Non current liabilities | ||
Total liabilities | ||
Minority's interest | ||
Equity attributable to shareholder of parent company | ||
Share of net assets measured by shareholding | ||
Adjustment | ||
--Goodwill | ||
--Unrealized profit of internal trading | ||
-- Other | ||
Book value of equity investment in associated enterprise | ||
Fair value of the equity investment of associated enterprise with public offers concerned |
Operating income | ||
Net profit | ||
Net profit of discontinuing operation | ||
Other comprehensive income | ||
Total comprehensive income | ||
Dividends received from associated enterprise in the year |
Other explanation
(4) Financial summary for non-important Joint venture and associated enterprise
Unit: RMB/CNY
Ending balance/Current Period | Opening balance/Last Period | |
Joint venture: | -- | -- |
Amount based on share-holding ratio | -- | -- |
Associated enterprise: | -- | -- |
Total book value of investment | 13,949,747.57 | 13,957,440.24 |
Amount based on share-holding ratio | -- | -- |
--Net profit | -7,692.67 | 378,188.39 |
--Total comprehensive income | -7,692.67 | 378,188.39 |
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
(6) Excess loss occurred in joint venture or associated enterprise
Unit: RMB/CNY
Joint venture/Associated enterprise | Cumulative un-recognized losses | Un-recognized losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-recognized losses at period-end |
Changzhou Shenbao Chacang E-business Co., ltd. | 8,742,655.05 | 772,485.23 | 9,515,140.28 |
Shenzhen Shichumingmen Catering Management Co., Ltd. | 4,815,325.70 | 4,815,325.70 |
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
Name | Main place of operation | Registration place | Business nature | Shareholding ratio/ shares enjoyed | |
Directly | In-directly |
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classification:
Other explanation
5. Structured body excluding in consolidate financial statement
Explanation:
6. Other
X. Disclosure of risks relating to financial instrumentsOur business operation makes the Company exposed to various financial risks: credit risk, liquidity risk andmarket risk (Including exchange rate risk, interest rate risk and other price risk).The Company disperses the risk of financial instruments through appropriate diversified investment and businessportfolio, and reduces the risk concentrating on a single industry, specific region or specific counterparty byformulating corresponding risk management policies.
Credit riskCredit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractualobligations.Credit risks of the Company arises mainly from monetary funds, note receivable, account receivable, otherreceivable, debt investments, financial guarantee contracts , the debt instrument investments measured at fairvalue and with its variation reckoned in current gain/loss that are not included in the scope of impairmentassessment and derivative financial assets, etc. As at the balance sheet date, the carrying value of the financialassets represented its maximum exposure to credit risk;Monetary funds of the Company are mainly the bank deposits placed with reputable state-owned banks and otherlarger and medium-sized listed banks with high credit ratings, we believes that it is not exposed to significantcredit risks and will hardly incur significant losses due to the bank defaults.Furthermore, for bill receivable, account receivables and other account receivables, the Company establishesrelevant policies to control exposure of credit risk. The Company appraises customers’ credit quality based ontheir financial position, possibility to obtain guarantee from third parties, credit history and other factors such as
prevailing market conditions, and set corresponding credit terms. Customers’ credit history would be regularlymonitored by the Company. For those customers who have bad credit history, the Company will call collection inwritten form, shorten credit term or cancel credit term to ensure its overall credit risk is under control.As of 31 December 2021, the account receivable from top five customers accounted for 43.18% of the Company’stotal account receivable.The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (includingderivative financial instrument). The Company has not provided any guarantee which would otherwise make theCompany exposed to credit risk except for the financial guarantee carried in Note “X. Related party and relatedtransaction”
Liquidity riskLiquidity risk refers to the risk that a company will run short of funds to meet its obligations settled by deliveringcash or other financial assets.It is the Company’s policy to ensure that sufficient cash is available to meet debt obligations as they fall due.Liquidity risk is centrally controlled by the Company’s finance department. By monitoring cash balances, readilyrealizable marketable securities, and rolling forecasts of cash flows for the next 12 months, the finance departmentensures that the company has sufficient funds to service its debts under all reasonable forecasts. In addition, itcontinues to monitor whether borrowing agreement is complied with, and seeks for commitment from majorfinancial institutions for provision of sufficient back-up fund, so as to satisfy capital requirement in a short andlong term.
Market riskThe market risk of financial instruments refers to the risk that the fair value or future cash flows of financialinstruments will fluctuate due to changes in market prices, including exchange rate risk, interest rate risk and otherprice risks.
Interest riskInterest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate dueto changes in market interest rates.Interest-bearing financial instruments with fixed rates and floating rates expose the Company to fair value interestrate risk and cash flow interest rate risk, respectively. The Company determines the ratio of fixed interest rateinstruments to floating interest rate instruments according to the market environment, and maintains anappropriate portfolio of fixed and floating interest rate instruments through regular review and monitoring. Whennecessary, the Company will use interest rate swap instruments to hedge interest rate risk.
Exchange rate riskExchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
the changes in foreign exchange rates.The Company continuously monitors the foreign currency transactions and the scale of foreign currency assetsand liabilities to minimize foreign exchange risks. In addition, the company may also sign forward foreignexchange contracts or currency swap contracts to avoid exchange rate risks. During the current period and theprevious period, the Company did not sign any forward foreign exchange contracts or currency swap contracts.
Other price riskOther price risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate dueto changes in market prices other than exchange rate risk and interest rate risk.Other price risk of the Company arises mainly from investment in various types of equity instruments and isexposed to the risks of changes in the prices of equity instruments.XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Item | Ending fair value | |||
First-order | Second-order | Third-order | Total | |
I. Sustaining measured by fair value | -- | -- | -- | -- |
(i) Trading financial assets | 921,099.27 | 210,139,671.23 | 211,060,770.50 | |
1.Financial assets measured by fair value and with variation reckoned into current gains/losses | 921,099.27 | 210,139,671.23 | 211,060,770.50 | |
(2)Equity instrument investment | 921,099.27 | 921,099.27 | ||
(ii) Other debt investments | 210,139,671.23 | 210,139,671.23 | ||
(iii) Investment in other equity instruments | 57,500.00 | 57,500.00 | ||
Total assets continuously measured at fair value | 921,099.27 | 210,197,171.23 | 211,118,270.50 | |
II. Non-persistent measure | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-order
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XII. Related party and related transactions
1. Parent company
Parent company | Registration place | Business nature | Registered capital | Ratio of shareholding on the Company | Ratio of voting right on the Company |
Shenzhen Food Materials Group Co., Ltd | Shenzhen | Investing in industry, development, operation and management of the own property | 5000 million Yuan | 63.79% | 63.79% |
Explanation on parent company of the enterpriseUltimate controller of the Company is Shenzhen Municipal People’s Government State-owned Assets Supervision & AdministrationCommissionOther explanation:
2. Subsidiary
Subsidiary of the Company found more in Note IX-Equity in other entity
3. Joint venture and associated enterprise
Important joint venture and associated enterprise of the Company found more in the in Note IX-Equity in other entityOther cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previousperiod:
Joint venture/Associated enterprise | Relationship with the Enterprise |
Other explanation
4. Other related party
Other related party | Relationship with the Enterprise |
Shenzhen Agricultural Products Group Co., Ltd | Holding subsidiary of parent company |
Shenzhen Shenliang Cold Transport Co., Ltd. | Holding subsidiaries of the Company's associates |
Shenzhen Investment Holdings Co., Ltd. | Former shareholder of the Company, Controlled by the same ultimate controlling party |
Dongguan Fruit Vegetable Non-staple Food Trading Market Co., Ltd. | Minority shareholder of controlling subsidiary |
Yao Jicheng | Minority shareholder of controlling subsidiary |
Shenzhen Higreen International Agricultural Products Logistic Management Co., Ltd | Holding subsidiary of parent company |
Guangxi Higreen Business Management Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Qianhai Nongmai World E-Commerce Co., Ltd | Holding subsidiary of parent company |
Changsha Mawangdui Agricultural Products Co., Ltd. | Holding subsidiary of parent company |
Xi’an Moore Agricultural Products Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Chinese Cabbage Technology Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Qianhai Agricultural Products Exchange Co., Ltd. | Holding subsidiary of parent company |
Huizhou Higreen Agricultural Products International Logistics Co., Ltd. | Holding subsidiary of parent company |
Chengdu Agricultural Products Center Wholesale Market Co., Ltd. | Holding subsidiary of parent company |
Guangxi Higreen Agricultural Products International Logistics Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Shennong Kitchen Co., Ltd | Holding subsidiary of parent company |
Shenzhen Zhenchu Supply Chain Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Medical Materials Co., Ltd. | Holding subsidiary of parent company |
Shenzhen Shennong Land Co., Ltd. | Holding subsidiary of parent company |
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | Wholly-owned subsidiary of parent company |
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
Related party | Related transaction content | Current Period | Approved transaction limit | Whether more than the transaction limit (Y/N) | Last Period |
Shenzhen Shenliang Cold Transport Co., Ltd. | Warehousing Services/Transportation services | 1,931,243.32 | 1,931,243.32 | N | 797,104.71 |
Shenzhen Shenyuan Data Tech. Co., Ltd | Information software development | 18,568,969.37 | 18,568,969.37 | N | 11,652,658.88 |
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | Cleaning services fee | 22,641.51 | 22,641.51 | N | |
Shenzhen Shennong Kitchen Co., Ltd | Purchasing Goods | 5,239.90 | 5,239.90 | N | |
Shenzhen Food Materials Group Co., Ltd | Management service fee | 142,533.62 | 142,533.62 | N | |
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | Management service fee | 360,647.10 | 360,647.10 | N |
Goods sold/labor service providing
Unit: RMB/CNY
Related party | Related transaction content | Current period | Last period |
Guangxi Higreen Agricultural Products International Logistics Co., Ltd. | Grain and oil sales | 39,143.36 | 8,240.71 |
Guangxi Higreen Business Management Co., Ltd. | Grain and oil sales | 8,240.71 | |
Shenzhen Qianhai Nongmai World E-Commerce Co., Ltd | Grain and oil sales | 33,175.84 | 40,700.34 |
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | Grain and oil sales/Cleaning services fee | 4,120.35 | 38,083.07 |
Shenzhen Agricultural Products Group Co., Ltd | Grain and oil sales | 56,920.35 | |
Shenzhen Shenliang Cold Transport Co., Ltd. | Grain and oil sales/Warehousing Services | 245,944.66 | 106,873.75 |
Shenzhen Shennong Kitchen Co., Ltd | Grain and oil sales | 801,338.84 | 108,027.61 |
Shenzhen Investment Holdings Co., Ltd. | Grain and oil sales | 10,300.88 | 24,250.00 |
Shenzhen Shenyuan Data Tech. Co., Ltd | Grain and oil sales/ lease | 30,697.17 | 8,217.70 |
Shenzhen Agricultural Products Group Co., Ltd | Tea Sales | 36,654.85 | 2,299.12 |
Shenzhen Food Materials Group Co., Ltd | Asset Management | 1,201,379.91 | 3,725,827.37 |
Shenzhen Food Materials Group Co., Ltd | Tea Sales | 46,954.67 | 2,600.00 |
Chengdu Agricultural Products Center Wholesale Market Co., Ltd. | Grain and oil sales | 103,008.85 | |
Huizhou Higreen Agricultural Products International Logistics Co., Ltd. | Grain and oil sales | 72,106.20 | |
Shenzhen Qianhai Agricultural Products Exchange Co., Ltd. | Grain and oil sales | 8,240.72 | |
Shenzhen Chinese Cabbage Technology Co., Ltd. | Grain and oil sales | 8,453.09 | |
Shenzhen Medical Materials Co., Ltd. | Grain and oil sales | 2,060.18 | |
Shenzhen Zhenchu Supply Chain Co., Ltd. | Grain and oil sales | 6,770,130.60 | |
Xi’an Moore Agricultural Products Co., Ltd. | Grain and oil sales | 20,601.77 | |
Changsha Mawangdui Agricultural Products Co., Ltd. | Grain and oil sales | 20,644.25 |
Shenzhen Shennong Land Co., Ltd. | Grain and oil sales | 17,168.15 |
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/ outsourcingTrusteeship management/contract:
Unit: RMB/CNY
Client/Contract-out party | Entrusting party/Contractor | Trustee/assets contract | Trustee /start | Trustee /ends | Managed earnings /pricing of the contract earnings | Managed earnings confirmed in the period / contract earnings |
Related managed/contract:
Entrusted management/outsourcing:
Unit: RMB/CNY
Client/Contract-out party | Entrusting party/Contractor | Trustee/assets contract | Trustee /start | Trustee /ends | Managed earnings /pricing of the contract earnings | Managed earnings confirmed in the period / contract earnings |
Related management/ outsourcing:
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
Lessee | Assets type | Lease income recognized in the Period | Lease income recognized last Period |
Shenzhen Shichumingmen Catering Management Co., Ltd. | Operating site | 666,258.42 | |
Shenzhen Shenyuan Data Technology Co., ltd. | Operating site | 505,162.86 | 433,320.00 |
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | Office space | 251,497.14 | 257,255.00 |
As lessee:
Unit: RMB/CNY
Lessor | Assets type | Lease income recognized in the Period | Lease income recognized last Period |
Shenzhen Food Materials Group Co., Ltd | Office space | 358,057.14 | 680,308.56 |
Explanation on related lease
(4) Related guarantee
As guarantor
Unit: RMB/CNY
Secured party | Guarantee amount | Guarantee start date | Guarantee expiry date | Whether the guarantee has been fulfilled |
Changzhou Shenbao Chacang E-business Co., ltd. | 5,000,000.00 | 2011/12/20 | Until the loan principal and interest are settled | N |
As secured party
Unit: RMB/CNY
Guarantor | Guarantee amount | Guarantee start date | Guarantee expiry date | Whether the guarantee has been fulfilled |
Dongguan Fruit and Vegetable Food Market Co., Ltd | 18,587,157.80 | 2020/10/21 | 2032/10/19 | N |
Explanation on related guarantee: The Company acquired 49% minority interest of Dongguan Logistics held by Dongguan Fruit andVegetable Food Market Co., Ltd in the Period. On January 14, 2022, Dongguan Fruit and Vegetable Food Market Co., Ltd no longerprovides guarantee to Dongguan Logistics- the subsidiary of the Company.
(5) Related party’s borrowed funds
Unit: RMB/CNY
Related party | Borrowing amount | Starting date | Maturity date | Note |
Borrowing | ||||
Lending |
(6) Related party’s assets transfer and debt reorganization
Unit: RMB/CNY
Related party | Related transaction content | Current Period | Last Period |
(7) Remuneration of key manager
Unit: RMB/CNY
Item | Current Period | Last Period |
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable item
Unit: RMB/CNY
Item | Related party | Ending balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Account receivable | |||||
Shenzhen Shenliang Cold Transport Co., Ltd. | 116,476.25 | 1,149.36 | 113,286.17 | 7,029.57 | |
Shenzhen Shennong Kitchen Co., Ltd | 115,208.00 | 1,152.08 | 63,672.00 | 636.72 | |
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | 8,701.00 | 87.01 | |||
Shenzhen Qianhai Nongmai World E-Commerce Co., Ltd | 38,259.42 | 382.59 | |||
Shenzhen Food Materials Group Co., Ltd | 28,632.00 | 286.32 | 740,878.31 | 7,408.78 | |
Shenzhen Agricultural Products Group Co., Ltd | 2,598.00 | 25.98 | |||
Guangxi Higreen Agricultural Products International | 18,624.00 | 186.24 |
Logistics Co., Ltd. | |||||
Huizhou Higreen Agricultural Products International Logistics Co., Ltd. | 37,248.00 | 372.48 | |||
Shenzhen Shennong Land Co., Ltd. | 14,744.00 | 147.44 | |||
Shenzhen Medical Materials Co., Ltd. | 2,328.00 | 23.28 | |||
Shenzhen Zhenchu Supply Chain Co., Ltd. | 5,874,880.36 | 58,748.80 | |||
Shenzhen Shenyuan Data Tech. Co., Ltd | 5,940.00 | 59.40 | |||
Other account receivable | |||||
Shenzhen Shenliang Cold Transport Co., Ltd. | 578.00 | 5.78 | |||
Shenzhen Higreen International Agricultural Products Logistic Management Co., Ltd | 50,000.00 | 50,000.00 | |||
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | 5,520.00 | 5,520.00 | 5,520.00 | 5,520.00 | |
Shenzhen Shenyuan Data Tech. Co., Ltd | 30,000.00 | 300.00 | 8,972,895.54 | 89,728.96 | |
Changzhou Shenbao Chacang E-business Co., ltd. | 24,608,742.46 | 22,187,644.18 | 24,494,677.07 | 22,007,578.79 |
Shenzhen Shichumingmen Catering Management Co., Ltd. | 2,092,477.67 | 990,192.72 | 2,092,197.67 | 581,383.34 | |
Shenzhen Investment Holdings Co., Ltd. | 415,644.52 | 415,644.52 | |||
Shenzhen Food Materials Group Co., Ltd | 1,000.00 | ||||
Yao Jicheng | 48,000.00 | 480.00 |
(2) Payable item
Unit: RMB/CNY
Item | Related party | Ending book balance | Opening book balance |
Dividend payable | |||
Shenzhen Investment Management Co., Ltd | 2,690,970.14 | 2,690,970.14 | |
Other account payable | |||
Shenzhen Shenliang Cold Transport Co., Ltd. | 102,790.00 | 2,790.00 | |
Shenzhen Food Materials Group Co., Ltd | 146,162,941.72 | 146,520,998.86 | |
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co., Ltd | 8,030,954.17 | 8,009,954.17 | |
Shenzhen Duoxi Equity Investment Fund Management Co., Ltd. | 41,486.00 | 41,486.00 | |
Shenzhen Shichumingmen Catering Management Co., Ltd. | 209,275.00 | 184,275.00 | |
Shenzhen Investment Management Co., Ltd | 3,510,297.20 | 3,510,297.20 | |
Shenzhen Shenyuan Data Tech. Co., Ltd | 2,000,330.53 | ||
Account received in advance |
Shenzhen Shenliang Cold Transport Co., Ltd. | 210.00 |
7. Related party commitment
8. Other
XIII. Share-based payment
1. Overall situation of share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
NilXIV. Commitment or contingency
1. Important commitments
Important commitments on balance sheet dateThe Company has no important commitments that need to disclosed up to 31 December 2021.
2. Contingency
(1) Contingency on balance sheet date
Lawsuits
(1)The sales and purchase contract disput between Hualian Company and Zhuhai Doumen Huabi Trading Co., Ltd(hereinafter referred to as "Zhuhai Huabi")
Concerning the Hualian Company (plaintiff) bring a suit against Zhuhai Huabi (defendant), the People’s Court ofShenzhen Luohu District has made the first instance effective judgment in 2007: 1. The defendant should repaythe plaintiff payment for goods of 2,396,300 yuan; 2. The defendant should pay the plaintiff liquidated damages of239,600 yuan; 3. Court acceptance fee of 33,200 yuan should be borne by the defendant.In 2005, Zhuhai Huabi stopped production and its legal representative was arrested by the public security organs.It was found that Zhuhai Huabi had been cancelled.As of the date of the audit report, Hualian Company has set aside 100.00% of bad debt reserves for the receivablesof 2,396,300 yuan from Zhuhai Huabi.
(2) Disputes over import agency contract among SZCG, Hualian Company and Guangzhou Jinhe Feed Co.,Ltd.(hereinafter referred to as Guangzhou Jinhe), Huang XianningIn the case of the plaintiff SZCG and Hualian Company versus the defendant Guangzhou Jinhe and HuangXianning over the import and export agency contract disputes, the Futian District People’s Court made thefirst-instance judgment in 2015: 1. The defendant Guangzhou Jinhe should pay a total of 10,237,400 yuan toSZCG and Hualian Company within 10 days from the effective date of the judgment; 2. If it fails to perform itspecuniary obligations within the period specified by the judgment, it shall pay double the interest on the debt forthe delayed in performance in accordance with Article 253 of the Civil Procedure Law of the People’s Republic ofChina; 3. The case acceptance fee of 83,200 yuan shall be borne by Guangzhou Jinhe.As Guangzhou Jinhe dissatisfied with the above-mentioned first-instance judgment, it appealed to the ShenzhenIntermediate People's Court. On March 30, 2017, the Shenzhen Intermediate People's Court issued asecond-instance judgment, which rejected the appeal of Guangzhou Jinhe and upheld the original judgment.Subsequently, SZCG and Hualian Company applied to the Court of first instance for the enforcement.As of the date of the audit report, the case is currently still being executed, and the other party has not paid anymoney. SZCG has made a provision for bad debts at a rate of 100.00% for the receivable payment of 10,455,600yuan from Guangzhou Jinhe.According to the "Letter of Commitment from Shenzhen Fude State Capital Operation Co., Ltd. on the PendingLitigation of Shenzhen Cereals Group Co., Ltd.", Shenzhen Fude State Capital Operation Co., Ltd. (now renamedShenzhen Food Materials Group Co., Ltd.) will bear the compensation or losses caused by the lawsuit on itsbehalf for any claims, compensation, losses or expenditures caused by the disputes over import agency contractamong SZCG and its holding subsidiaries with Guangzhou Jinhe and Huang Xianning.
(3) Contract disputes between Hualian Company and Foshan Shunde Huaxing Feed Factory (hereinafter referredto as "Huaxing Feed Factory")In August and October 2007, Hualian Company sold products to Huaxing Feed Factory and received commercialacceptance bills totaling 2,958,600 yuan. Due to the company’s failure to repay the overdue payment, HualianCompany filed a lawsuit with the Shunde District People’s Court of Foshan City on October 29, 2007, requestingHuaxing Feed Factory to repay the payment and pay the corresponding interest. From June to July 2011, a total of1,638,900 yuan of the company’s bankruptcy assets was recovered. As of the date of the audit report, Hualian
Company had a receivable payment of 1,319,700 yuan from Huaxing Feed Factory. This amount has beenwithdrawn bad debt reserves by 100.00%.
(4) Mung bean business disputes between SZCG and Jilin Tongyu County Shengda Company (hereinafter referredto as "Shengda Company")On August 26, 2010, the Shenzhen Futian District People’s Court accepted the case of the plaintiff SZCG versusthe defendant Shengda Company over an entrustment contract dispute. Upon mediation, both parties reached amediation agreement voluntarily: 1. It’s confirmed that the defendant Shengda Company still owes the plaintiffSZCG the repurchase payment of 7.492 million yuan and the repurchase payment interest of 2.8 million yuanbefore September 3, 2009. 2. The defendant Shengda Company should pay the first installment of 1 million yuanto the plaintiff SZCG before October 30, 2010, and should pay 1 million yuan at the end of each month fromNovember 2010 to March 2011, and should pay 492,000 yuan before the end of April. 2011, totaling 6,492,000yuan. 3. If the defendant Shengda Company can pay the above amount in full and on schedule, it does not need topay the remaining principal of 1 million yuan and the interest of 2.8 million yuan. If any of the above sums are notpaid in full and on schedule, the plaintiff may apply to the court for enforcement of all the claims set out in thefirst item above.After the mediation agreement came into effect, Shengda Company did not fully fulfill its repayment obligations,and SZCG has applied for compulsory execution. As of the date of the audit report, the book receivablesamounted to 5,602,500 yuan, and the execution of the remaining amounts was highly uncertain, the Company hasfully made provisions for bad debts of 5,602,500 yuan for this payment.
(5) Contract disputes of the Company’s subsidiaries, Shenbao Rock Tea, Jufangyong Holdings, Mount WuyiJiuxing Tea Co., Ltd. (hereinafter referred to as “Jiuxing Company”), Fujian Wuyishan Yuxing Tea Co., Ltd.(hereinafter referred to as “Yuxing Company”), Xingjiu Tea Co., Ltd., and Chen Yuxing, Chen GuopengOn December 3, 2018, due to the separation contract dispute, based on the arbitration clause in the originalFormal Agreement Regarding the Separation of Fujian Wuyishan Shenbao Yuxing Tea Co., Ltd., the arbitrationapplicants Shenbao Rock Tea and Jufangyong Holdings filed an arbitration with the Shenzhen Court ofInternational Arbitration with Jiuxing Company, Yuxing Company, Xingjiu Tea Co., Ltd., Chen Yuxing, and ChenGuopeng as the respondents, requesting: 1. To rule that the respondent Jiujiuxing Company should pay 5,272,900yuan and liquidated damages of 1,581,900 yuan to the applicant Shenbao Rock Tea, totaling 6,854,800 yuan; 2. Torule that the respondents Yuxing Company, Xingjiu Company, Chen Yuxing, and Chen Guopeng shall be jointlyand severally liable for the above-mentioned receivables and liquidated damages to the applicant Rock Tea; 3. Torule that the respondent Yijiuxing Company shall pledge 19 designated trademarks to the applicant JufangyongHoldings, and cooperate with the corresponding registration procedures for trademark pledge; 4. To rule that allthe respondents shall bear the attorney’s fee of 190,000 yuan paid by the applicant for this case, the preservationfee and other expenses incurred in this arbitration (the applicant reserves the right to pursue the remainingattorney’s fees); 5. To rule that the respondents shall bear all arbitration fees in this case.On April 18, 2019, the Shenzhen Court of International Arbitration held a hearing for the arbitration case. On May
20, 2021, the Shenzhen Court of International Arbitration issued a ruling that: 1. Wuyishan Jiuxing Tea Co., Ltd.should compensate Jufangyong Company and Shenbao Rock Tea Company for losses of receivables andliquidated damages of 4,798,369.95 yuan; 2. Fujian Wuyishan Yuxing Tea Co., Ltd., Xingjiu Tea Co., Ltd., ChenYuxing, and Chen Guopeng shall be jointly and severally liable for the above payment obligations of WuyishanJiuxing Tea Co., Ltd.; 3. The arbitration fee in this case of 104,953 yuan shall be paid by the five respondents tothe two applicants; 4. Two arbitrators’ expenses of 4,000 yuan shall be paid directly by the five respondents to thetwo applicants. After the arbitration award came into effect, because the respondents refused to repay, theapplicants applied to the court for enforcement. On August 5, 2021, the two parties signed an enforcement ofsettlement agreement. The respondents should pay receivables, liquidated damages, attorney’s fees, and arbitrationfees to the applicants, totaling 5,097,322.95 yuan, payment shall be made in 18 installments, with the respondentspaying 1.6 million yuan in the first installment and paying 200,000 yuan per month thereafter, and the finalpayment is 297,322.95 yuan (i.e., the payment will be completed before January 31, 2023). As of the date of theaudit report, the applicants received a total of 2.8 million yuan.
(6) Sales contract disputes between Hualian Company and Dalian Liangshuntong Supply Chain Management Co.,Ltd. (hereinafter referred to as “Liangshuntong Company”)
1) In the case of the plaintiff Liangshuntong Company versus the defendant Hualian Company over a salescontract dispute ([2019] Yue 0304 Min Chu No. 49562), the Futian District People’s Court made a first-instancecivil judgment on July 3, 2020 that: 1. The plaintiff Liangshun Tongtong Company shall pay Hualian Company595,800 yuan within ten days from the effective date of this judgment; 2. Reject the claims of LiangshuntongCompany; 3. Reject other counterclaims of Hualian Company; 4. The plaintiff Liangshuntong Company shallprepay the litigation fee of 208,900 yuan, which shall be borne by the plaintiff, and the defendant HualianCompany shall prepay the counterclaim acceptance fee of 113,000 yuan, of which 1,800 yuan shall be borne bythe plaintiff and 111,200 yuan shall be borne by the defendant. After receiving the judgment, the plaintiffLiangshuntong refused to accept it and appealed to the Shenzhen Intermediate People’s Court. The ShenzhenIntermediate People’s Court made a final ruling on October 29, 2021, and the ruling is as follows: rejecting theappeal and upholding the original judgment. The Futian District People’s Court has accepted the enforcementapplication submitted by Hualian Company.
2) In the case of the plaintiff Hualian Company versus the defendant Liangshuntong Company over a contractdispute (Case No. [2020] Yue 0304 Min Chu No. 2824), the Futian District People’s Court delivered the CivilJudgment of the first instance on December 31, 2020, ruling that 1. The defendant Liangshuntong Company shallpay Hualian Company advance fees of 461,900 yuan and capital cost of 4,030,000 yuan within ten days from theeffective date of the judgment; 2. Liangshuntong Company shall pay the capital occupation fee (based on 461,900yuan, with an annual interest rate of 10.00%, calculating from December 11, 2019 to the date of paying off the fullamount) to Hualian Company within ten days from the effective date of the judgment; 3. Case acceptance fee of42,700 yuan shall be borne by the defendant Liangshuntong Company. After receiving the judgment,Liangshuntong appealed to the Shenzhen Intermediate People’s Court on January 22, 2021. The ShenzhenIntermediate People’s Court made a final ruling on November 9, 2021, and the ruling is as follows: rejecting the
appeal and upholding the original judgment. As of the date of the audit report, Shenzhen Futian District People’sCourt has accepted the enforcement application submitted by Hualian Company.
(7) Disputes over construction engineering contract between Heilongjiang Hongxinglong Farms & LandReclamation Shenxin Grain Industrial Park Co., Ltd. (hereinafter referred to as “Hongxinglong”) andHeilongjiang Zhishengda Construction Engineering Co., Ltd. (hereinafter referred to as “Zhishengda Company”)In April 2020, Zhishengda Company filed a lawsuit with Hongxinglong People’s Court of Heilongjiang Provincewith Hongxinglong as the defendant, requesting: 1. To confirm that the “Letter on Rectification of CompletedProjects and Cancellation of Not Constructed Projects” issued by Hongxinglong on April 7, 2020 does not havethe effect of terminating the contract, the rescission contract made by it is invalid, and judge that the defendantHongxinglong should continue to perform the contract (the project cost required to perform the contract is5,137,800 yuan). 2. The litigation fee and other legal costs shall be borne by Hongxinglong.On July 29, 2020, Hongxinglong filed a counterclaim with the first-instance court, requesting the court: 1. Toconfirm the validity of the cancellation of the construction contract between Hongxinglong and Zhishengda inaccordance with the law. 2. To rule that the Zhishengda should pay Hongxinglong liquidated damages of1,003,200 yuan, of which liquidated damages for overdue completion of the project of 253,200 yuan, repair costsfor unqualified project quality of about 240,000 yuan (the specific amount is to be determined by a third party),liquidated damages for project manager’s absence from the construction site without permission of 500,000 yuan,liquidated damages for the migrant worker’s collective petitions of 10,000 yuan. 3. The counterclaim fee andappraisal fee shall be borne by Zhishengda.On March 16, 2021, the third-party appraisal agency applied by Zhishengda Company conducted an on-sitesurvey and conducted on-site appraisal for the engineering quantities. In July 2021, Hongxinglong went to theHeilongjiang Farms & Land Reclamation Intermediate People’s Court to determine the third-party appraisalagency (Heilongjiang Yage Construction Engineering Management Consulting Co., Ltd., now renamed ZhongyunProject Management Co., Ltd.) to appraise the cost of project restoration. On September 22, Hongxinglong paid20,000 yuan for the appraisal. On October 27, 2021, Zhongyun Project Management Co., Ltd. came to the site forappraisal. On March 9, 2022, the first-instance trial was held, and the lawyers of both parties conductedcross-examination, but the third-party appraiser did not appear in court due to the impact of the pandemic, so it isplanned to choose another day for the trial.
(8) Construction project subcontracting dispute case of Xu Anwu versus Dongguan Shenliang Logistics Co., Ltd.,Gansu Installation and Construction Group Co., Ltd., Guangdong Dianbai Construction Group Co., Ltd., and XuJianqiangOn March 17, 2021, the plaintiff Xu Anwu sued Dongguan Shenliang Logistics Co., Ltd., Gansu Installation andConstruction Group Co., Ltd., Guangdong Dianbai Construction Group Co., Ltd., and Xu Jianqiang as defendantsto the First People’s Court of Dongguan, requesting: 1. The four defendants to immediately pay the plaintiff theconstruction cost of 10.445 million yuan; 2. The four defendants to bear the litigation costs in this case.
On May 19, 2021, Gansu Installation and Construction Group Co., Ltd. filed a counterclaim with Xu Anwu as thecounterclaim defendant, requesting: 1. Xu Anwu to immediately return the overpaid 2,566,974.25 yuan to GansuInstallation and Construction Group Co., Ltd.; 2. Xu Anwu to bear all litigation costs.The case has been heard on July 14, 2021, and the court has not yet decided.
(9) Contract disputes between Hangzhou Jufangyong Commercial and Trading Co., Ltd. and Hangzhou XingfuFeixiang Commercial and Trading Co., Ltd.In July 2020, the plaintiff Hangzhou Jufangyong Commercial and Trading Co., Ltd. filed a lawsuit with XiaoshanPrimary People’s Court, Hangzhou against Hangzhou Xingfu Feixiang Commercial and Trading Co., Ltd. as thedefendant, requesting to order: 1. The defendant to pay a total of 2,454,700 yuan for cooperative use fees andwater and electricity fees 2. The defendant to pay the western restaurant’s cooperative use fee of 699,700 yuan andwater and electricity fees (according to the actual amount) from July 1, 2019 to September 10, 2019; 3. Thedefendant to pay liquidated damages of 515,300 yuan; 4. The defendant to pay liquidated damages (from April 16,2020 to the date of repayment, with a base of 3,154,400 yuan and a monthly interest rate of 2%); 5. The defendantto bear the litigation costs in this case.Xiaoshan Primary People’s Court, Hangzhou ruled that Hangzhou Xingfu Feixiang Commercial and Trading Co.,Ltd. entered bankruptcy proceedings and appointed an administrator, in August 2020, it ruled to suspend the trialof the case, requiring the plaintiff to declare its claims directly to the administrator. On December 23, 2020, theXiaoshan Primary People’s Court resumed the hearing of the case, the administrator issued a claim confirmationsheet and calculation details, confirming the plaintiff’s claim principal of 2,422,494.80 yuan and interest of166,000.00 yuan, totaling 2,588,494.80 yuan.
(10) Disputes over sales contract between Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou JufangyongCommercial and Trading Co., Ltd.,On September 7, 2021, the plaintiff Hangzhou Jufangyong Holdings Co., Ltd. Sued Hangzhou JufangyongCommercial and Trading Co., Ltd. as the defendant to the Hangzhou Binjiang District People’s Court, requestingto order: 1. The defendant to immediately pay the payment of 2,816,266.50 yuan; 2. The defendant to bear thelitigation costs in this case.On October 29, 2021, Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou Jufangyong Commercial andTrading Co., Ltd. reached a pre-litigation mediation, and Hangzhou Jufangyong Commercial and Trading Co., Ltd.paid 2.816 million yuan to Hangzhou Jufangyong Holdings Co., Ltd., and paid off before November 30, 2021.On December 8, 2021, Hangzhou Binjiang District People’s Court issued a civil ruling paper, ruling that themediation agreement reached by Hangzhou Jufangyong Holdings Co., Ltd. and Hangzhou JufangyongCommercial and Trading Co., Ltd. on October 29, 2021 is valid, and the parties shall consciously perform theirobligations in accordance with the provisions of the mediation agreement. If one party refuses to perform or failsto perform all of its obligations, the other party can apply to the people’s court for enforcement.On December 29, 2021, Hangzhou Binjiang District People’s Court accepted the enforcement application of
Hangzhou Jufangyong Holdings Co., Ltd.On March 4, 2022, Hangzhou Jufangyong Holdings Co., Ltd. submitted an application for “transfer ofenforcement to bankruptcy” to Hangzhou Intermediate People’s Court.
(11) Disputes over private lending between Shenzhen Shenshenbao Tea Culture Commercial Management Co.,Ltd. and Shenzhen Shi Chu Ming Men Catering Management Co., Ltd.On May 31, 2021, the plaintiff Shenzhen Shenshenbao Tea Culture Commercial Management Co., Ltd. filed alawsuit with Shenzhen Nanshan District People’s Court against Shenzhen Shi Chu Ming Men CateringManagement Co., Ltd. as the defendant, requesting to order: 1. The defendant to return the principal of 1,183,000yuan borrowed from the plaintiff; 2. The defendant to pay the interest on borrowings of 171,250.68 yuan to theplaintiff; 3. The defendant to bear the litigation costs in this case.On December 1, 2021, the court made a judgment in support of all the claims of Shenzhen Shenshenbao TeaCulture Company.On January 20, 2022, Nanshan Court accepted the enforcement application of Shenzhen Shenshenbao Tea CultureCompany.
(12) Disputes over special operating contract between Shanghai Baoyan Catering Co., Ltd. and HangzhouFuhaitang Catering Management Chain Co., Ltd.On July 22, 2021, the plaintiff Shanghai Baoyan Catering Co., Ltd. filed a lawsuit with Hangzhou BinjiangDistrict People’s Court against Hangzhou Fuhaitang Catering Management Chain Co., Ltd. as the defendant,requesting: 1. To cancel the Regional Agency Authorized Operating Agreement signed by the plaintiff and thedefendant; 2. The defendant to return the regional agency cooperation fee of 1,880,000 yuan and the cooperationdeposit of 80,000 yuan to the plaintiff, a total of 1,960,000 yuan; 3. The defendant to pay the liquidated damagesof 100,000 yuan to the plaintiff; 4. The defendant to pay the attorney fee of 50,000 yuan to the plaintiff; 5. Thedefendant to bear the litigation fee in this case. The Hangzhou Binjiang District People’s Court issued a subpoenaon February 11, 2022, confirming that the case number was (2021) Zhe 0108 Min Chu No. 5890, and the courtdate set for March 17, 2022.
(13) Sales contract disputes between Shuangyashan Shenliang Grain Base Co., Ltd. and Shanghai Zexi IndustrialCo., Ltd.On October 18, 2021, the plaintiff Shuangyashan Shenliang Grain Base Co., Ltd. filed a lawsuit with the ShanghaiPutuo District People’s Court with Shanghai Zexi Industrial Co., Ltd. as the defendant, requesting: 1. Thedefendant to immediately issue and deliver a special VAT invoice amounting 25.2 million yuan for the payment ofgoods to the plaintiff; if the defendant cannot issue the invoice, it shall need to compensate the plaintiff for the taxdeduction loss of 2,899,115.04 yuan; 2. The defendant to compensate the plaintiff for the failure of the defendantto issue invoices, resulting in the plaintiff paying a late fee of 137,376.63 yuan to the tax bureau; 3. The defendantto compensate the plaintiff for travel expenses loss of 10,860.61 yuan; 4. The defendant to bear the litigation costs
of this case. A court date has not yet been set.
(14) Sales contract disputes between Shuangyashan Shenliang Grain Base Co., Ltd. (hereinafter referred to as“Shuangyashan Company”) and Tongliao Fada Grain Purchase and Storage Co., Ltd.On November 26, 2021, the plaintiff Tongliao Fada Grain Purchase and Storage Co., Ltd. filed a lawsuit withKeerqin District People’s Court of Tongliao City, Inner Mongolia Autonomous Region, with ShuangyashanCompany as the defendant, requesting: 1. To cancel the six purchase contracts signed with ShuangyashanCompany; 2. Shuangyashan Company to return the corn purchase payment of 25.2 million yuan; 3. ShuangyashanCompany to pay the interest on occupation of funds of 4,713,603.11 yuan (tentatively until November 1, 2021); 4.Shuangyashan Company to bear the litigation costs of this case.Shuangyashan Company filed an objection to jurisdiction with Keerqin District People’s Court of Tongliao City,Inner Mongolia Autonomous Region. On March 24, 2022, Keerqin District People’s Court of Tongliao City, InnerMongolia Autonomous Region made a ruling that Shuangyashan Company’s objection to jurisdiction wasestablished, and the case was transferred to the People’s Court of Baoqing County, Shuangyashan City,Heilongjiang Province. On April 1, 2022, Tongliao Fada Grain Purchase and Storage Co., Ltd. filed an appeal withTongliao Intermediate People’s Court, requesting to revoke the ruling on the objection to jurisdiction.
(15) Project construction contract disputes between Wuhan Jiangxia Yijian Construction Engineering Co., Ltd. andWuhan Jiacheng Biological Products Co., Ltd.I. On January 10, 2022, the plaintiff Wuhan Jiangxia Yijian Construction Engineering Co., Ltd. filed a lawsuitwith Jiangxia District People’s Court of Wuhan City against Wuhan Jiacheng Biological Products Co., Ltd. as thedefendant, requesting: 1. The defendant to immediately pay the project money of 4,421,888.97 yuan owed to theplaintiff ; 2. The defendant to pay liquidated damages (based on the arrears of the project payment of 4,421,888.97yuan, and calculated at an annual interest rate of 15.4% from October 10, 2019 to the date of payment, andtemporarily calculated to be 1,514,927 yuan until December 30, 2021) for the delayed payment of the projectpayment to the plaintiff. The above two items add up to 5,936,815 yuan. 3. The defendant to bear all expenses ofthe case, including litigation fee, appraisal fee, and preservation fee.The plaintiff applied for property preservation (the preservation amount was more than 5.9 million yuan), and theJiangxia District Court ruled to freeze all bank accounts of Wuhan Jiacheng Biological Products Co., Ltd.The Jiangxia District People’s Court of Wuhan City set the court date as February 28, 2022, and the case numberis (2022) E 0115 Min Chu No. 182.II. On February 25, 2022, the counterclaim plaintiff Wuhan Jiacheng Biological Products Co., Ltd. filed acounterclaim against Wuhan Jiangxia Yijian Construction Engineering Co., Ltd. as the counterclaim defendant,requesting: 1. To confirm that the Hubei Province Construction Project Contract, with the project cost of25,965,136.97 yuan, signed by the plaintiff and the defendant on July 4, 2017 for the Jiacheng Bio-Industrial ParkConstruction Project (Phase I) is invalid; 2. To order the defendant of the counterclaim to submit the completecompletion data and completion report to the plaintiff of the counterclaim and assist in handling the completion
acceptance of the project and the relevant procedures for archiving and filing the engineering data in the urbanconstruction archives; 3. To compensate for the losses (from April 1, 2018 to October 25, 2019, calculated at1,000 yuan per day; from October 26, 2019 to the date of acceptance and delivery of project, with 21,543,248yuan as the base, calculated according to the quoted interest rate of the loan market for the same period announcedby the National Interbank Funding Center, and it’s about 2.3 million yuan calculated to the date of indictment)caused to the plaintiff due to the delayed delivery of the Wuhan Jiacheng Bio-Industrial Park Construction Project(Phase I); 4. To bear the litigation fees, preservation fees and other expenses for the counterclaim.
(16) Disputes over loan contract between Changzhou Shenbao Tea-Shop E-commerce Co., Ltd. (hereinafterreferred to as “Changzhou Company”) and Shenzhen Agricultural Products Financing Guarantee Co., Ltd.(hereinafter referred to as “Agricultural Products Guarantee Company”)On July 15, 2016, the Agricultural Products Guarantee Company submitted a Civil Complaint to Shenzhen FutianDistrict People’s Court, requesting to order: 1. Changzhou Company to repay the loan principal of 5,000,000.00yuan and the interest of 389,968.52 yuan, and the penalty interest of 3,200,271.79 yuan (The penalty interest istemporarily calculated until June 30, 2016, and actually calculated to the date when the loan is fully paid); 2.Changzhou Company to pay compensation of 100,000.00 yuan ( 5,000,000 yuan × 2%); totaling 8,690,240.31yuan; 3. Shenzhen Shenbao Industrial Co., Ltd. (hereinafter referred to as “Shenbao Company”)to be jointly andseverally liable for the loan of 5,000,000.00 yuan.Shenzhen Futian District People’s Court issued a first-instance judgment on May 31, 2017, ruling that ChangzhouCompany should repay the loan principal of 5 million yuan and interest of 353,871.28 yuan, and interest penalty(interest penalty is based on 5 million yuan as the principal, calculated from September 7, 2013 to the date ofactual repayment at an annual rate of 21.6%. If the repayment is made in installments, the interest ofcorresponding part will be calculated to the date of each repayment) to the plaintiff Agricultural ProductsGuarantee Company within 10 days from the effective date of the judgment, and Changzhou Company shall bearthe lawyer’s fee of 71,911 yuan and the preservation fee of 5,000 yuan; the judgment rejected the request of theAgricultural Products Guarantee Company’s request Shenbao Company to bear joint and several liability.Agricultural Products Guarantee Company refused to accept the first-instance judgment and filed an appeal to theShenzhen Intermediate People’s Court. On May 10, 2019, the Shenzhen Intermediate People’s Court served thecivil judgment (final judgment), and the Shenzhen Intermediate Court made some changes to the first-instancejudgment, ruling that Shenbao Company (now renamed Shenzhen Cereals Holdings Co., Ltd.) shall be jointly andseverally liable for the debts of Changzhou Company within the range of 3.5 million yuan; Shenbao Company(now renamed as Shenzhen Cereals Holdings Co., Ltd.) has the right to recover from Changzhou Company afterpaying off the debts on its behalf.In May 2021, Agricultural Products Guarantee Company applied to Futian District Court of the first instance forcompulsory execution of 5,193,443 yuan. According to the request of the court, Changzhou Company declared theproperty status to the court. Agricultural Products Guarantee Company reached a voluntary settlement withChangzhou Company and SZCH. On October 20, 2021, Futian Court issued an enforcement ruling to terminatethe enforcement of the case.
Guarantee
(1) The Company and subsidiary of the Company -SZCG provide a guarantee to its subsidiary - InternationalFoodThe Company and Subsidiary of the Company -SZCG provide a guarantee to International Food for theapplication of loans, amount of guarantee is 614.6709 million yuan. As of the date of approval of the financialreport, the loan is not yet due for repayment.
(2) Subsidiary of the Company -SZCG provide a guarantee to its subsidiary -Dongguan LogisticsSubsidiary of the Company -SZCG provide a guarantee to Dongguan Logistics for the application of loans,amount of guarantee is 118.5579 million yuan. As of the date of approval of the financial report, the loan is not yetdue for repayment.
(3) Subsidiary of the Company -SZCG provide a guarantee to its subsidiary -Dongguan Grain and OilSubsidiary of the Company -SZCG provide a guarantee to Dongguan Grain and Oil for the application of loans,amount of guarantee is 86.132 million yuan. As of the date of approval of the financial report, the loan is not yetdue for repayment.
(4) Associated guarantees and restricted assets
Restricted assets found more in the Note VII (81), associated guarantee found more in Note XII (5)
(2) If the Company has no important contingency need to disclosed, explain reasonsThe Company has no important contingency that need to disclose.
3. Other
XV. Events after balance sheet date
1. Important non adjustment matters
Unit: RMB/CNY
Item | Content | Impact on financial status and operation results | Reasons of fails to estimate the impact |
2. Profit distribution
Unit: RMB/CNY
Profit or dividend to be distributed | According to the resolution of 21th session |
3. Sales return
4. Other events after balance sheet date
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
of 10th BOD, the profit distribution plan foryear of 2021 is: Based on total share capitalof 1,152,535,254 on 31 Dec 2021,distributed cash dividend of 2.5 Yuan (taxincluded) for every 10 shares to allshareholders with zero share bonus (taxincluded), and no share converted fromcapital reserve, a total of 288,133,813.50Yuan cash are distributed.Content of accounting error
correction
Content of accounting error correction | Procedures | Items impact during vary comparative period | Accumulated impact |
(2)Prospective application
Content of accounting error correction | Approval procedure | Reasons for adopting the prospective applicable method |
2. Debt restructuring
3. Assets exchange
(1) Exchange of non-monetary assets
(2) Other assets exchange
4. Pension plan
5. Discontinuing operation
Unit: RMB/CNY
Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Profit of discontinuing operation attributable to owners of parent company |
Other explanation
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
Unit: RMB/CNY
Item | Offset between segment | Total | |
(3) The Company has no segment, or unable to disclose total assets and liability of the segment, explainreasons
(4) Other explanation
7. Other major transaction and events makes influence on investor’s decision
8. Other
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Account receivable classify by category
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with bad debt | 28,453.08 | 0.02% | 28,453.08 | 100.00% | 28,453.08 | 0.69% | 28,453.08 | 100.00% |
provision accrual on a single basis | ||||||||||
Including: | ||||||||||
Account receivable with single minor amount but with bad debts provision accrued on a single basis | 28,453.08 | 0.02% | 28,453.08 | 100.00% | 28,453.08 | 0.69% | 28,453.08 | 100.00% | ||
Account receivable with bad debt provision accrual on portfolio | 135,682,852.60 | 99.98% | 4,426.30 | 135,678,426.30 | 4,098,218.40 | 99.31% | 10,537.22 | 0.26% | 4,087,681.18 | |
Including: | ||||||||||
Portfolio of sales receivable | 8,852.60 | 0.01% | 4,426.30 | 50.00% | 4,426.30 | 796,996.91 | 19.31% | 10,537.22 | 1.32% | 786,459.69 |
Object-specific portfolio | 135,674,000.00 | 99.97% | 135,674,000.00 | 3,301,221.49 | 80.00% | 3,301,221.49 | ||||
Total | 135,711,305.68 | 100.00% | 32,879.38 | 135,678,426.30 | 4,126,671.48 | 100.00% | 38,990.30 | 4,087,681.18 |
Accrual of bad debt provision on single item:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes | |
Other accrual on single basis | 28,453.08 | 28,453.08 | 100.00% | Slightly possibly taken back |
Total | 28,453.08 | 28,453.08 | -- | -- |
Accrual of bad debt provision on single item:
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Accrual ratio | Accrual causes |
Accrual of bad debt provision on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio | |
Portfolio of sales receivable | 8,852.60 | 4,426.30 | 50.00% |
Object-specific portfolio | 135,674,000.00 | ||
Total | 135,682,852.60 | 4,426.30 | -- |
Explanation on portfolio determines:
Accrual of bad debt provision on portfolio:
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Accrual ratio |
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age | Book balance |
Within one year(including one year) | 135,674,000.00 |
2-3 years | 37,305.68 |
Over 3 years | 8,852.60 |
Over 5 years | 28,453.08 |
Total | 135,711,305.68 |
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written off | Other | |||
Other accrual on single basis | 28,453.08 | 28,453.08 | ||||
Sales Receivables Portfolio | 10,537.22 | 6,110.92 | 4,426.30 | |||
Total | 38,990.30 | 6,110.92 | 32,879.38 |
Including major amount bad debt provision that collected or reversal in the period:
Unit: RMB/CNY
Enterprise | Amount collected or reversal | Collection way |
(3) Account receivable actually written-off in the period
Unit: RMB/CNY
Item | Amount written-off |
Including major account receivable written-off:
Unit: RMB/CNY
Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on account receivable written-off:
(4)Top 5 account receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise | Ending balance of accounts receivable | Proportion in total receivables at ending balance (%) | Ending balance of bad debt reserve |
Total |
(5) Amount of assets and liabilities that formed the by transferring of account receivable and continue to beinvolvedOther explanation:
(6) Account receivables derecognized due to the transfer of financial assets
2. Other account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Dividend receivable | 540,000,000.00 | 390,000,000.00 |
Other account receivable | 443,939,717.84 | 502,105,968.23 |
Total | 983,939,717.84 | 892,105,968.23 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
2) Important overdue interest
Borrower | Ending balance | Overdue time | Overdue causes | Whether impairment occurs and its judgment basis |
Other explanation:
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or the invested entity) | Ending balance | Opening balance |
SZCG | 540,000,000.00 | 390,000,000.00 |
Total | 540,000,000.00 | 390,000,000.00 |
2) Important dividend receivable with account age over one year
Unit: RMB/CNY
Item (or the invested entity) | Ending balance | Account age | Reasons for not collection | Whether impairment occurs and its judgment basis |
3) Accrual of bad debt provision
□ Applicable √ Not applicable
Other explanation:
(3) Other account receivable
1) Other account receivable classify by nature
Unit: RMB/CNY
Nature | Ending book balance | Opening book balance |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on Jan. 1, 2021 | 258,262.82 | 27,187,201.50 | 27,445,464.32 | |
Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
Current accrual | 444,065.39 | 444,065.39 | ||
Current reversal | 44,794.67 | 44,794.67 | ||
Balance on 31 Dec. 2021 | 213,468.15 | 27,631,266.89 | 27,844,735.04 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age | Book balance |
Within one year(including one year) | 446,290,047.53 |
2-3 years | 25,494,405.35 |
Over 3 years | 436,664.33 |
3-4 years | 436,664.33 |
4-5 years | 24,621,076.69 |
Over 5 years | 471,784,452.88 |
Total | 446,290,047.53 |
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written off | Other | |||
Accrual of bad debt provision on single item | 27,187,201.50 | 444,065.39 | 27,631,266.89 | |||
Accrual of bad debt provision on | 258,262.82 | 44,794.67 | 213,468.15 |
portfolio | ||||||
Total | 27,445,464.32 | 444,065.39 | 44,794.67 | 27,844,735.04 |
Including major amount with bad debt provision reverse or collected in the period:
Unit: RMB/CNY
Enterprise | Amount reversal or collected | Collection way |
4) Other account receivable actually written-off in the period
Unit: RMB/CNY
Item | Amount written-off |
Including important other account receivable written-off:
Unit: RMB/CNY
Enterprise | Nature | Amount written-off | Written-off causes | Procedure of written-off | Resulted by related transaction (Y/N) |
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other account receivables | Ending balance of bad debt reserve |
First | Other internal funds | 163,583,712.37 | Within one year | 34.67% | |
Second | Other internal funds | 121,519,491.64 | Within one year | 25.76% | |
Three | Other internal funds | 113,690,711.18 | Within one year | 24.10% | |
Fourth | Other internal funds | 24,608,742.46 | Within one year, over 5 years | 5.22% | 22,187,644.18 |
Fifth | Other internal funds | 20,016,916.67 | Within one year | 4.24% | |
Total | 443,419,574.32 | 93.99% | 22,187,644.18 |
6) Other account receivables related to government grants
Unit: RMB/CNY
Enterprise | Government grants | Ending balance | Ending account age | Time, amount and basis |
7) Other receivables derecognized due to the transfer of financial assets
8) Amount of assets and liabilities that formed the by transferring of other receivable and continue to beinvolvedOther explanation:
3. Long-term equity investment
Unit: RMB/CNY
for collection predictedItem
Item | Ending balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment for subsidiary | 4,054,019,425.09 | 5,500,000.00 | 4,048,519,425.09 | 3,713,214,425.09 | 5,500,000.00 | 3,707,714,425.09 |
Investment for associates and joint venture | 2,927,628.53 | 2,927,628.53 | 2,927,628.53 | 2,927,628.53 | ||
Total | 4,056,947,053.62 | 8,427,628.53 | 4,048,519,425.09 | 3,716,142,053.62 | 8,427,628.53 | 3,707,714,425.09 |
(1) Investment for subsidiary
Unit: RMB/CNY
The invested entity | Opening balance(book value) | Current changes (+, -) | Ending balance(book value) | Ending balance of impairment provision | |||
Additional investment | Capital reduction | Accrual of impairment provision | Other | ||||
Shenbao Property | 2,550,000.00 | 2,550,000.00 | |||||
Shenbao Industry & Trade | 5,500,000.00 | ||||||
Shenliang Food | 80,520,842.36 | 80,520,842.36 | |||||
Shenbao Huacheng | 168,551,781.80 | 168,551,781.80 | |||||
Huizhou Shenbao | 60,000,000.00 | 60,000,000.00 |
Shenbao Technology | 54,676,764.11 | 54,676,764.11 | |||||
Shenbao Investment | 50,000,000.00 | 50,000,000.00 | |||||
SZCG | 3,291,415,036.82 | 3,291,415,036.82 | |||||
Dongguan Logistics | 321,680,000.00 | 321,680,000.00 | |||||
Wuhan Jiacheng | 21,675,000.00 | 21,675,000.00 | |||||
Total | 3,707,714,425.09 | 343,355,000.00 | 2,550,000.00 | 4,048,519,425.09 | 5,500,000.00 |
(2) Investment for associates and joint venture
Unit: RMB/CNY
Investment company | Opening balance(book value) | Current changes (+, -) | Ending balance(book value) | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Accrual of impairment provision | Other | ||||
I. Joint venture | |||||||||||
II. Associated enterprise | |||||||||||
Shenzhen Shenbao (Liaoyuan) Industrial Company | 57,628.53 | ||||||||||
Shenzhen Shenbao (Xinmi | 2,870,000.00 |
n) Foods Co., Ltd | |||||||||||
Subtotal | 2,927,628.53 | ||||||||||
Total | 2,927,628.53 |
(3) Other explanation
4. Operating revenue and operating cost
Unit: RMB/CNY
Item | Current Period | Last Period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 152,450,921.01 | 471,590.28 | 2,937,704.33 | 2,935,769.97 |
Other business | 304,502.00 | 3,849,941.90 | 471,590.33 | |
Total | 152,755,423.01 | 471,590.28 | 6,787,646.23 | 3,407,360.30 |
Revenue-related information:
Unit: RMB/CNY
Category | Branch 1 | Branch 2 | Total | |
Product Types | ||||
Including: | ||||
Classification by business area | ||||
Including: | ||||
Market or customer type | ||||
Including: | ||||
Contract Types | ||||
Including: | ||||
Classification by time of goods transfer | ||||
Including: | ||||
Classification by contract duration | ||||
Including: |
Classification by sales channel | ||||
Including: | ||||
Total |
Information relating to performance obligations:
NilInformation related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period buthave not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, 0.00yuan of revenue is expected to berecognized in 0 yuan of revenue is expected to be recognized in 0, and 0.00 yuan of revenue is expected to be recognized in 0.Other explanation:
5. Investment income
Unit: RMB/CNY
Item | Current Period | Last Period |
Investment income from disposal of long-term equity investment | 274,697.80 | 2,288,570.32 |
Investment income during the period of tradable financial assets hold | 667,216.57 | 392,551.01 |
Subsidiary dividends | 150,451,054.95 | 390,473,276.41 |
Total | 151,392,969.32 | 393,154,397.74 |
6. Other
XVIII. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
Unit: RMB/CNY
Item | Amount | Note |
Gains/losses from the disposal of non-current asset | 29,351,180.57 | |
Governmental subsidy reckoned into current gains/losses (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 15,871,621.28 | |
Profit and loss of assets delegation on others’ investment or management | 4,014,308.85 | |
Except for the effective hedging operations related to normal business operation of | 299,292.76 |
the Company, the gains/losses of fair value changes from holding the trading financial assets and trading financial liabilities, and the investment earnings obtained from disposing the trading financial asset, trading financial liability | ||
Switch-back of provision of impairment of account receivable and contract assets which are treated with separate depreciation test | 4,076,676.65 | |
Other non-operating income and expenditure except for the aforementioned items | 13,089,042.88 | |
Subtotal | ||
Less: impact on income tax | 14,600,145.88 | |
Impact on minority interests | 940,057.30 | |
Total | 51,161,919.81 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
2. ROE and earnings per share
Profits during report period | Weighted average ROE | Earnings per share | |
Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | 9.13% | 0.3720 | 0.3720 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 8.04% | 0.3276 | 0.3276 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □Not applicable
Unit: RMB/CNY
Net profit | Net assets | |||
Current Period | Last Period | Ending balance | Opening balance | |
Chinese GAAP | 428,720,226.09 | 405,088,385.54 | 4,630,292,102.34 | 4,595,331,999.76 |
Items and amount adjusted by IAS: | ||||
Adjustment for other payable fund of stock market regulation | 1,067,000.00 | 1,067,000.00 | ||
IAS | 428,720,226.09 | 405,088,385.54 | 4,631,359,102.34 | 4,596,398,999.76 |
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
4. Other