深圳市特力(集团)股份有限公司
SHENZHENTELLUSHOLDINGCO.,LTD.
AnnualReport2021
April2022
SectionI.ImportantNotice,ContentsandInterpretation
BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofShenzhenTellusHoldingCo.,Ltd.(hereinafterreferredtoastheCompany)herebyguaranteesthetruthfulness,accuracyandcompletenessoftheannualreportandthattherearenofictitiousrecords,misleadingstatements,orimportantomissionscarriedinthisreport,andassumesindividualandjointlegalresponsibilities.FuChunlong,PrincipaloftheCompany,LouHong,personinchargeofaccountingworksandaccountingorgan(accountingexecutive)herebyguaranteesthattheFinancialReportofAnnualReport2021isauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.
Concerningtheforward-lookingstatementswithfutureplanninginvolvedintheReport,theydonotconstituteasubstantialcommitmentforinvestors,investorsandrelevantpersonsshouldmaintainsufficientriskawarenessandthedifferencebetweenplanning,forecastingandcommitmentshouldbeunderstood,theinvestorsareadvisedtoexercisecautionofinvestmentrisks.TheprofitdistributionplandeliberatedandapprovedbytheBoardwas:basedonatotalsharecapitalof431,058,320asof31December2021,acashdividendof0.25yuan(taxincluded)per10sharesand0bonusshares(taxincluded)willbedistributedtoallshareholders,andnosharecapitalincreasefromaccumulationfund.
Contents
SectionIImportantNotice,ContentsandInterpretation ...... 2
SectionIICompanyProfileandMainFinancialIndexes ...... 6
SectionIIIManagementDiscussionandAnalysis ...... 11
SectionIVCorporateGovernance ...... 37
SectionVEnviornmentalandSocialResponsibility ...... 61
SectionVIImportantEvent ...... 63
SectionVIIChangesinsharesandparticularaboutshareholders ...... 78
SectionVIIIPreferredStock ...... 86
SectionIXBonds ...... 87
SectionXFinancialReport ...... 88
DocumentsAvailableforReference
(i)FinancialStatementcontainingthesignatureandsealsofthepersoninchargeoftheCompany,thepersoninchargeoftheaccountingworksandpersoninchargeroftheaccountingorganization(accountingexecutive).(ii)OriginalauditreportcontainingthesealoftheaccountingfirmsandsignatureandsealoftheCPA.(iii)Originalcopiesofalldocumentsandannouncementsthathavebeenreleasedpubliclyduringthereportingperiod.
Interpretation
| Items | Refersto | Contents |
| CSRC | Refersto | ChinaSecuritiesRegulatoryCommission |
| SZE | Refersto | ShenzhenStockExchange |
| ShenzhenBranchofCSDC | Refersto | ChinaSecuritiesDepositoryandClearingCorporationLimited-ShenzhenBranch |
| Company,theCompany,ourCompany,TellusGroup | Refersto | ShenzhenTellusHoldingCo.,Ltd. |
| Reportingperiod,thisreportingperiod,theyear | Refersto | Yearof2021 |
| AutoIndustryandTradeCompany | Refersto | ShenzhenAutoIndustryandTradeCorporation |
| ZhongtianCompany | Refersto | ShenzhenZhongtianIndustrialCo,.Ltd. |
| GAC | Refersto | Gems&JewelryTradeAssociationofChina |
| HuariCompany | Refersto | ShenzhenSDGHuariAutoEnterpriseCo.,Ltd. |
| HuariToyota | Refersto | ShenzhenHuariToyotaAutoSalesCo.,Ltd |
| ZungFuTellus | Refersto | ShenzhenZungFuTellusAutoServiceCo.,Ltd. |
| TellusStarlight | Refersto | AnhuiTellusStarlightJewelryInvestmentCo.,Ltd. |
| TellusStarlightJinzun | Refersto | AnhuiTellusStarlightJinzunJewelryCo.,Ltd. |
| SichuanChannelPlatformCompany,SichuanJewelryCompany | Refersto | SichuanTellusJewelryTech.Co.,Ltd. |
| TellusProperty | Refersto | ShenzhenSDGTellusPropertyManagementCo.,Ltd. |
| SD,SDG,controllingshareholder | Refersto | ShenzhenSpecialDevelopmentGroupCo.,Ltd. |
| TreasurySupplyChainCompany | Refersto | ShenzhenTellusBaokuSupplyChainTech.Co.,Ltd. |
| DongfengCompany | Refersto | ShenzhenDongfengMotorCo.,Ltd. |
| ShenzhenJewelryCompany | Refersto | ShenzhenJewelryIndustryServiceCo.,LTD |
| ShanghaiFanyue | Refersto | ShanghaiFanyueDiamondCo.,Ltd. |
SectionIICompanyProfileandMainFinancialIndexesI.Companyinformation
| Shortformofthestock | Tellus-A,Tellus-B | Stockcode | 000025,200025 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameoftheCompany(inChinese) | 深圳市特力(集团)股份有限公司 | ||
| ShortformoftheCompany(inChinese) | 特力A | ||
| ForeignnameoftheCompany(ifapplicable) | ShenzhenTellusHoldingCo.,Ltd | ||
| Legalrepresentative | FuChunlong | ||
| Registrationsadd. | 3/F,TellusBuilding,No.56ShuiBeiErRoad,LuohuDistrict,Shenzhen | ||
| Codeforregistrationsadd | 518020 | ||
| Officesadd. | 3/F-4/F,TellusBuilding,ShuiBeiErRoad,LuohuDistrict,Shenzhen | ||
| Codesforofficeadd. | 518020 | ||
| Company’sInternetWebSite | www.tellus.cn | ||
| ir@tellus.cn | |||
II.Person/Waytocontact
| SecretaryoftheBoard | Rep.ofsecurityaffairs | |
| Name | QiPeng | LiuMenglei |
| Contactadd. | 3/F,TellusBuilding,Shuibei2ndRoad,LuohuDistrict,Shenzhen | 3/F,TellusBuilding,Shuibei2ndRoad,LuohuDistrict,Shenzhen |
| Tel. | (0755)83989390 | (0755)88394183 |
| Fax. | (0755)83989386 | (0755)83989386 |
| ir@tellus.cn | liuml@tellus.cn |
III.Informationdisclosureandpreparationplace
| WebsiteoftheStockExchangewheretheannualreportoftheCompanydisclosed | ShenzhenStockExchange-http://www.szse.cn/ |
| MediaandWebsitewheretheannualreportofthe | SecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| Companydisclosed | (www.cninfo.com.cn) |
| Preparationplaceforannualreport | SecretariatoftheBODofShenzhenTellusHoldingCo.,Ltd. |
IV.RegistrationchangesoftheCompany
| Organizationcode | 91440300192192210U |
| Changesofmainbusinesssincelisting(ifapplicable) | Nochangesduringtheperiod |
| Previouschangesforcontrollingshareholders(ifapplicable) | 1.On31March1997,the159,588,000statesharesheldbyShenzhenInvestmentManagementCo.,Ltd.,theonlynon-circulationshareholder,weretransfertoShenzhenSpecialDevelopmentGroupCo.,Ltd.;totalsharecapitaloftheCompanywas220,281,600shareswhile159,588,000statesharesheldbySDG,a72.45%intotalsharecapital.2.AscontrollingshareholderoftheCompany,aftertheequityseparationreform,thenon-publicofferingofAshareandreducingsomeoftheshareswithunlimitedsalesconditions,SDGheld49.09%ofthetotalsharesoftheCompanyasoftheendofthereportingperiod,andremainedthecontrollingshareholderoftheCompany. |
V.OtherrelevantinformationCPAengagedbytheCompany
| NameofCPA | RSMCertifiedPublicAccountants(SpecialGeneralPartnership) |
| Officesadd.forCPA | Suite901-22to901-26,No.22FuchengmenWaiStreet,WaiJingMaoBuilding,XinchengDisctrict,Beijing,China |
| SigningAccountants | LiQiaoyi,QinChangming |
SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableFinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableVI.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdataornot
□Yes√No
| 2021 | 2020 | Changesinthecurrentyearoverthepreviousyear(+,-) | 2019 | |
| Operatingrevenue(Yuan) | 508,520,026.18 | 424,419,203.34 | 19.82% | 571,072,893.90 |
| Netprofitattributableto | 131,020,764.38 | 57,663,828.89 | 127.21% | 219,669,708.47 |
| shareholdersofthelistedCompany(Yuan) | ||||
| NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(Yuan) | 71,731,038.87 | 47,719,889.72 | 50.32% | 53,738,507.05 |
| Netcashflowarisingfromoperatingactivities(Yuan) | 126,611,734.90 | 109,105,302.88 | 16.05% | 78,911,353.03 |
| Basicearningspershare(RMB/Share) | 0.3040 | 0.1338 | 127.20% | 0.5096 |
| Dilutedearningspershare(RMB/Share) | 0.3040 | 0.1338 | 127.20% | 0.5096 |
| WeightedaverageROE | 9.56% | 4.48% | 5.08% | 18.92% |
| Year-endof2021 | Year-endof2020 | Changesatendofthecurrentyearcomparedwiththeendofpreviousyear(+,-) | Year-endof2019 | |
| Totalassets(Yuan) | 1,859,645,205.43 | 1,708,442,301.15 | 8.85% | 1,645,782,144.03 |
| NetassetsattributabletoshareholderoflistedCompany(Yuan) | 1,432,924,273.45 | 1,310,524,675.47 | 9.34% | 1,270,965,296.02 |
Theloweroneofnetprofitbeforeandafterdeductingthenon-recurringgains/lossesinthelastthreefiscalyearsisnegative,andtheauditreportoflastyearshowsthattheabilitytocontinueoperatingisuncertain
□Yes√NoTheloweroneofnetprofitbeforeandafterdeductingthenon-recurringgains/losesisnegative
□Yes√NoVII.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.VIII.Quarterlymainfinancialindex
InRMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 144,033,886.08 | 105,458,375.16 | 136,697,968.79 | 122,329,796.15 |
| NetprofitattributabletoshareholdersofthelistedCompany | 21,691,438.24 | 22,851,277.08 | 25,443,244.99 | 61,034,804.07 |
| NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses | 20,476,430.15 | 21,114,162.32 | 23,496,249.31 | 6,644,197.09 |
| Netcashflowarisingfromoperatingactivities | -4,764,233.42 | 64,335,632.44 | 37,452,152.98 | 29,588,182.90 |
Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedintheCompany’squarterlyreportandsemi-annualreport
□Yes√No
IX.Itemsandamountsofnon-recurringprofit(gain)/loss
√Applicable□Notapplicable
InRMB
| Item | 2021 | 2020 | 2019 | Note |
| Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets) | 66,654,129.65 | 1.00 | 210,897,055.76 | IncomefromdisposaloftheDongfengCompany’sequity |
| Governmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,thegovernmentsubsidythataccordwiththeprovisionofnationalpoliciesandarecontinuouslyenjoyedinlinewithacertainstandardquotaor | 2,923,779.58 | 1,522,079.42 | 276,907.09 | Thegovernmentsubsidyfrompreferentialenterprisepolicy |
| quantityareexcluded) | ||||
| Fundpossessioncostreckonedintocurrentgains/losseschargedfromnon-financialbusiness | 629,671.75 | 435,887.15 | 47,083.32 | InterestreceivablefromDongfengCompany’sdividend |
| Gains/lossesoffairvaluechangesarisingfromholdingofthetradingfinancialasset,tradingfinancialliabilityandinvestmentearningsobtainedfromdisposingthetradingfinancialasset,tradingfinancialliability,andfinancialassetsavailableforsale,exceptfortheeffectivehedgingbusinessrelatedtonormaloperationoftheCompany | 10,073,533.17 | 8,812,468.26 | 10,684,691.16 | Financialincome |
| Restoringofreceivableimpairmentprovisionthattestedindividually | 493,295.33 | 935,476.72 | ||
| Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems | 730,552.50 | 3,196,406.42 | -744,465.10 | |
| Othergain/lossthatmeetthedefinitionofnon-recurringgain/loss | 46,275.77 | 44,839.26 | 9,378.94 | Refundofhandlingchargeforindividualtax |
| Less:Impactonincometax | 19,790,228.25 | 3,123,780.55 | 55,755,620.55 | |
| Impactonminorityshareholders’equity(post-tax) | 1,977,988.66 | 1,437,257.12 | 419,305.92 | |
| Total | 59,289,725.51 | 9,943,939.17 | 165,931,201.42 | -- |
Detailsofothergains/lossesitemsthatmeetsthedefinitionofnon-recurringgains/losses:
□Applicable√NotapplicableTherearenoothergains/lossesitemsthatmeetthedefinitionofnon-recurringgains/lossesintheCompany.Explaintheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
□Applicable√NotapplicableTherearenoitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
SectionIIIManagementDiscussionandAnalysis
I.IndustryoftheCompanyduringthereportingperiod
(i)OveralleconomicconditionsTheyear2021wasthefirstyearofChina'spost-pandemiceconomy,thebeginningofthe“14thFive-YearPlan”,andalsotheyearoftwocentenarygoalsconvergenceandstrategictransformation.Althoughfactorssuchasvariationofvirus,flooddisasters,policytightening,andimportedpandemiccontroldisruptedtheshort-termeconomy,undertheinfluenceoflowbaseeffect,enhancedendogenousmomentumandtrend-returningforces,in2021,China'smacroeconomyshowedsignificantcharacteristicsof“overallhighgrowthrate”,“seeminglyfallingquarterbyquarter”,and“actuallyrecoveringquarterbyquarter”.Fromtheproductionside,China'sproductionrecoveredsteadilyandthestructurewasfurtheroptimized.Fromthedemandside,thecomparisonofthethreedemandforceswasmorereasonable.InAugust,thescissorsdifferencebetweenPPIandCPIhitarecordhigh.Atthesametime,duetotheimpactofthepandemic,thegrowthrateofdisposablepersonalincomedeclined,thehouseholdconsumptiontendencydeclined,andtheincomegapwidened.Thegrowthrateofhouseholdconsumptionexpenditurehasnotyetrecoveredtothegrowthlevelbeforethepandemic,indicatingthattheeconomicrecoveryremaineduneven.Therewasmoreroomforproactivefiscalpolicyduringtheyear,whichboostedtheeconomy.Aprudentmonetarypolicyincreasedsupportforkeyfieldsandweaklinks.(ii)JewelryIndustryUndertheinfluenceofthepandemic,thedemandforjewelryhadbeendeferreduntil2021,whichbroughtaboutarapidrecoveryofthejewelryindustry.Thepandemicalsoacceleratedtheclearanceofsmallandmedium-sizedenterprisesandstoreswithbadmanagement,bringingaboutanincreaseinindustryconcentrationandanimprovementinthecompetitivelandscape.Sincethebeginningof2021,thedomesticgoldandjewelryretailmarkethasbeenrecoveringafterthepandemicwasfurthercontrolledinChina.FromJanuarytoAugust,thetotalretailsalesofgold,silverandjewelryconsumergoodsreached198.04billionyuan,ayear-on-yearincreaseof
43.4%,whichwasalsoanincreasecomparedto2019,themarketdemandincreasedsomewhat.However,thecompetitionforthesinkingmarketsharewasfierce,thehomogenizationandpricewarsintensified.Atthesametime,thepolicyofdeferredconsumptiontaxonjewelryandjadehadbeenpromulgatedformorethanoneyear,buthasnotbeenimplementedyet,theimportrateexceptfordiamondswashigh,andthemotivationforenterprisestooperateincompliancewasinsufficient.Thedifferentiationofthejewelryindustryhasbecomemoreandmoreobviousunderthepandemic,thesalesvolumeofleadingenterprisescontinuedtogrowwiththeiradvantagesinbrandsandchannels,andthejewelryornamentshascontinuedtoincreasemarketsharewiththepromotionofe-commerceandlivestreaming,whileitisincreasinglydifficultforsmallandmedium-sizedbrandslackofinnovationtooperate.
(iii)CommercialoperationindustryTheoverallsupplyofrentalserviceinShenzhenexceedsdemand,thevacancyrateofsomeofficebuildingsandcommercialshopshasincreased,andtheunitrentalpriceofshopsandofficebuildingshasdroppedsignificantly.Workingfromhomehasalsoreducedthedemandforrentalstoacertainextent.Therequirementsforoperatingservicemodelsandoperatingstandardsofcommercialentitieshavebeenfurtherenhanced.(iv)AutomobileindustryNewenergyvehicleshavebecomethebiggestbrightspotintheautomobileindustry,whosesalesvolumeincreasedby157.57%onayear-on-yearbasis,andproductionandsaleshitarecordhigh.Theimpactofpandemiconfuelvehiclesexceededexpectations,andtheimpactonnewvehiclesalesandafter-salesservicewashuge,especiallyformid-to-low-endbrands.Thechipsupplycrisisintensified,andvariousautomanufacturerssignificantlyreducedproductionandstoppedproduction.InAugust,September,andOctober,mostmanufacturersreducedproductionbymorethan50%,whichdirectlyaffectedthebusinessofeachstore.Theimpactofthenewinsurancepolicyandannualvehicleexaminationpolicyissuedattheendoflastyearbecamevisible,andthemaintenancebusinessandoverhaulbusinessweresignificantlyreduced.II.MainbusinessesoftheCompanyinthereportingperiod
MainbusinessoftheCompanyduringthereportingperiodwasjewelryservicebusiness,commercialoperationmanagement;salesofautomobile,testing,maintenanceandaccessoriessales.
1.Jewelryservicebusiness:Establishedforjustoveroneyear,TellusGroupJewelryBondedPlatformhashadmorethan200settledenterprisesandnearly400serviceenterprises,achievedthetotalamountofimportandexportof2.3billionyuan,andpaidimporttaxofmorethan30millionyuan.Theimportamountofpearlaccountedfor53%ofthesameperiodthroughoutthecountry,andthedomesticsalesofcoloredgemsaccountedfor39%ofthesameperiodthroughoutthecountry.Inordertostrengthenthethird-partyservicecapabilityofdiamonds,thecompanyestablishedShanghaiFanyue,amembercompanyoftheShanghaiDiamondExchange,inJune,andcarriedouttrialoperationattheendofAugust,realizingtheclosed-loopservicefromthebondedexhibitiontransactiontothegeneraltradeimportofdiamonds.Accordingtomarketdemand,thecompanyhasreshapedthesafedepositboxservice,soastomainlyachievebreakthroughsinsafedepositboxsalesbyrelyingontheservicemodeldesignapplicationscenariosofbondedplatform,andactivelyexpandotherbusinessscenarios.
2.Commercialoperationmanagement:ThemonthlyoccupancyrateofthetowerofTellusJewelryBuildingwas99%allyearround,andtheoccupancyrateofpodiumbuildingwas95%bytheendoftheyear.TheBuildingheld20"HeartWarming"activitiesthroughouttheyear,itinvitedhigh-qualitycommercialtenantstoattendtheShenzhenInternationalJewelryFairforthefirsttime,andsuccessfullyupgradedtobetheShenzhenMunicipalCulturalandCreativeIndustryPark.Thecompanymadeoutstandingachievementsinenergysavingandcarbon
reduction,andtheBuildingwasawardedthefirstthree-stargreenbuildinginLuohuDistrict.TheoccupancyrateofTellusLifeExperienceHallreached98%bytheendoftheyear,andthetraditionalpropertystillmaintainedanaverageannualoccupancyrateof99%intheunfavorablemarketenvironment.Intermsofmanagement,internalizedtheconsultingandresearchresults,improveditsownoperationsystem,andcreatedahigh-qualityserviceexperience.Innovatedthewayofpublicityandpromotion,andshotvideoofshopsviaTikToktohelpthemerchantsgainbothfameandfortune.
3.Automobilesales,testing,maintenanceandpartssales:Intermsofautomobilesales,increasedmonthlyin-storemarketingactivities,adjustedsalespoliciesinatimelymanner,optimizedinternalandexternalpromotionpoliciesforvaluechainproductsofnewvehiclessales,andpromotedtheincreaseinsalesaddedvalue.Intermsoffuelvehiclemaintenanceservices,timelysolvedcustomerproblemsbytelephonefollow-upandremotediagnosistofaultyvehiclesthroughtheInternetofVehiclesfunction;improvedcustomerexperiencethroughdigitalmarketing;improvedcustomerviscositythroughtheestablishmentofaone-customer-one-groupsystemandthesalesofservicepackagesformultipleregularmaintenance;turneddissatisfiedcustomersintoloyalcustomersthroughcustomercomplaintdeduction;increasedtheoutputvalueofcustomermaintenanceordersthroughkeycommoditymarketing.Intermsofnewenergyvehiclemaintenanceservices,comprehensivelystrengthenedtheafter-salesserviceofXiaopengnewenergyvehicles,especiallycustomerexperience.
III.CoreCompetitivenessAnalysis
1.Deeplycultivatethejewelryindustry,playtheidentityadvantagesandbuildanindustrialplatformSolidlypromotedthethird-partyecosystemconstructionofthejewelry,whichrapidlyimprovedthecompany'spopularityandinfluenceinthejewelryindustry.Thecompanykepttryingtoinnovatebusinessmodelsandsteadilypromotedtheimplementationoftransformationprojects,gavefullplaytothecreditadvantagesofastate-ownedlistedcompanyandthephysicalplatformresourcesinShuibeiarea,ajewelryindustrygatheringplace,andwentdeeplyintothejewelryindustrychainsoastohelpthejewelrythird-partybusinessachieveleapfrogdevelopment.In2019,ShenzhenTellusBaokuSupplyChainTech.Co.,Ltd.wasestablishedtocarryoutjewelrysupplychainbusiness,whichconsolidatedthethird-partyservicefoundationforjewelry.In2020,ShenzhenJewelryIndustryServiceCo.,Ltd.wasestablishedtoprovideservicessuchasbondedexhibition,bondedwarehousing,customsdeclaration,logistics,andsettlement,whichshallbebuiltintoacomprehensiveelementtradingserviceplatformwithinternationalinfluenceintegratingjewelryrawmaterialsandfinishedproductsexhibition,spottrading,testing,identification,design,processing,e-commerce,financialservices,insuranceandsoon.In2021,ShanghaiFanyueCompanywasestablished,whichrealizedtheclosed-loopservicefromthebondedexhibitiontransactiontothegeneraltradeimportofdiamonds.Asanimportantstartingpointforthegroup'sstrategictransformation,ShenzhenJewelryhassignificantlyimproveditspositioninthenationaljewelryindustrychain.ThesuccessfuloperationofShenzhenJewelrywashighlyrecognizedbybothmunicipalanddistrictgovernmentsandcustomsinShenzhen,whichenhancedthecompany'spositioninthejewelryindustrychain.
2.AbundantpropertyresourcesprovidestablebusinessincomeandfinancialsupportTheCompanyisthelargestowneroftheTellusGmanGoldJewelryIndustrialParkintheShuibeiarea,TellusShuibeiJewelryBuildinghasbeenfullyputintouse,andtheconstructionprojectoftheTellusJinzuanTradingBuildingisprogressingasplanned.Atthesametime,thecompanywillconstructaninnovativeindustrialprojectsinBuxinareathatconformtotheoverallstrategiclayoutofthecity,districtandtheCompanythroughrenovation.Inaddition,theCompanyhasalargenumberofpropertyresourcesinLuohuandFutiandistrictofShenzhen,onthebasisofmaintainingthestabilityoftheoriginalleasingbusiness,thecompanywillactivelypromotetheimprovementofpropertyqualityandtransformitsoldpropertiesfromthetraditionalmethodofsimpleleasingtothedirectionofpropertyassetoperation,soastofullyenhanceandtaptheaddedvalueofthepropertybrand,bringstablebusinessincomeandcashflowtothecompany,andprovideasolidfoundationforthecompany'slong-termdevelopment.
IV.Mainbusinessanalysis
1.OverviewDuringthereportingperiod,underthecorrectleadershipofthepartycommitteeandtheboardofdirectors,andwiththejointeffortsofallstaff,thecompanyforgedahead,seizedopportunities,andgenerallypresentedadevelopmenttrendof“steadyprogressandqualityimprovement”,whichtooktheinitiativeinthegoodopeningofthe14
th
Five-YearPlan.
(1)Thethird-partybusinessofjewelryachievedleapfrogdevelopment.Theconstructionofthethird-partyecosystemofjewelrywassolidlypromoted.Asanimportantstartingpointforthecompany'sstrategictransformation,ShenzhenJewelryachievedremarkableresults,andthesupportingandderivativeservicesbecamemorecomplete.ShanghaiFanyueCompanyrealizedtheclosed-loopservicefromthebondedexhibitiontransactiontothegeneraltradeimportofdiamonds.BaokuSupplyChainCo.,Ltd.reshapedthebusinesspositioningofsafedepositboxes,relyingonservicemodeldesignsapplicationscenariosofthebondedplatform.
(2)TheconstructionandoperationofTellusGoldDiamondTradingBuildingprojectmadesteadyprogressasplanned.Thecompanyovercametheimpactofthepandemicandtherainyseason,tookmultiplemeasures,suchasalternativeconstruction,optimizationofprocedures,designingofmainstructure,andcompletedthephasedgoalofcappingthemainbuildingwithhighqualityinadvance.
(3)Commercialoperationandmanagementcapabilitiessignificantlyenhanced.ThetowerofTellusJewelryBuildinghadanaverageoccupancyrateof99%,andtheoccupancyrateofpodiumbuildingreached95%bytheendoftheyear.Thecompanycontinuedtoimprovetheservicequality,andachievedoutstandingresultsinenergysavingandcarbonreduction.TheBuildingwonthefirstthree-stargreenbuildinginLuohuDistrict.The
occupancyrateofTellusLifeExperienceHallincreasedfromlessthan70%atthebeginningoftheyearto98%bytheendoftheyear.Thecommercialoperationsofotheroldpropertyresourcesalsoachievedgoodresults.
(4)TheautomotiveaftermarketbusinessofHuariCompanywendaheadsteadily.Inthecontextofthecontinuousdeclineinsalesvolumeoftraditionalvehicles,itstillmaintainedagoodsalesvolumeofnewvehicles,andsoughtbreakthroughsintheaftermarketbusinessbyexpandingnewenergyvehiclemaintenanceservices.
(5)Continuouslyoptimizedmanagementtobuildateamoffightershavingthesameresonance.Thesupportingroleofcorporateculturewasstronglydemonstrated,7conventionsofthecompany’sfirstbatchoffightershavebeenscreenedoutbysolicitingemployees'opinions,whichfullyreflectedthattheculturalconceptisrootedinthegrassrootsandextractedfromthebusiness.Thecompanyheld3strategyseminarsthroughouttheyeartodrawastrategicblueprintandunifythinkingandpacing.Focusedonthemanagementimprovement,improvedtheincentivemechanism,andacceleratedtheconstructionofa“flying-geesepattern”fortalentdevelopment.
(6)Promotedinformatizationconstructioninanorderlyandeffectivemanner.Accordingtobusinessneeds,thecompanyactivelypromotedtheinformatizationconstructionphaseIIofShenzhenJewelry.CompletedtheupgradeoftheOAsystem,coveredtheapplicationtothesubordinateenterprises,optimizedthesystemstructureandimprovedtheprocessefficiency.
(7)Adheredtotheleadershipofpartybuildingandbroughttogetherdevelopmentforces.Givefullplaytotheroleofthepartycommitteein“controllingthedirection,managingtheoverallsituation,andpromotingtheimplementation”,thepartycommitteeheld58meetingsthroughouttheyearandreviewed285topics;solidlycarriedoutthestudyandeducationoftheparty’shistory,organized17“Idopracticalthingsforthemasses”activities.
(8)Madeunremittingeffortsinsafetyproduction,andtherewasnoaccident.Kepttighteningthepandemicpreventionandcontrol,andtherewasnonewinfection.Openedupthe“lastmile”ofsafetyproductionthroughtheimplementationofdetailedsystemsandthecompactionofresponsibilities,combinedsafetyproductionworkwithproductionandoperation,earnestlyimplementedthe“onepostwithtworesponsibilities”ofthefront-linestaff,organized37internaltrainingsforsafetyproductionthroughouttheyear,investedmorethan2millionyuanintherenovationofsafetyproductionequipmentandfacilities,andrectifiedmorethan900hiddendangers.Duringthereportingperiod,theCompanymadeatotalof176.12millionyuaninprofit,99.41millionyuanupcomparedto76.70millionyuaninthesameperiodofpreviousyear;thenetprofitattributabletoparentcompanyhas131.02millionyuan,anincreaseof73.36millionyuancomparedto57.66millionyuaninthesameperiodofpreviousyear;theyear-on-yearincreasewasmainlyincluding,firstly,propertyleasinghasmajorimpactfromtheepidemicinthesameperiodlastyear,andsecondly,disposalonDongfengCompany’sequitymadealargercontributiontothetotalprofitthisyear.
2.Revenueandcost
(1)Constituteofoperationrevenue
InRMB
| 2021 | 2020 | y-o-ychanges(+,-) | |||
| Amount | Ratio(%)inoperationrevenue | Amount | Ratio(%)inoperationrevenue | ||
| Totaloperationrevenue | 508,520,026.18 | 100% | 424,419,203.34 | 100% | 19.82% |
| Accordingtoindustries | |||||
| Autosales | 194,373,092.47 | 38.22% | 204,928,883.35 | 48.28% | -5.15% |
| Autoinspectionandmaintenanceandaccessoriessales | 49,668,740.60 | 9.77% | 43,351,689.36 | 10.21% | 14.57% |
| Propertyrentalandservice | 205,073,101.95 | 40.33% | 141,283,172.60 | 33.29% | 45.15% |
| Jewelrywholesaleandretails | 59,405,091.16 | 11.68% | 34,855,458.03 | 8.21% | 70.43% |
| Accordingtoproducts | |||||
| Autosales | 194,373,092.47 | 38.22% | 204,928,883.35 | 48.28% | -5.15% |
| Autoinspectionandmaintenanceandaccessoriessales | 49,668,740.60 | 9.77% | 43,351,689.36 | 10.21% | 14.57% |
| Propertyrentalandservice | 205,073,101.95 | 40.33% | 141,283,172.60 | 33.29% | 45.15% |
| Jewelrywholesaleandretails | 59,405,091.16 | 11.68% | 34,855,458.03 | 8.21% | 70.43% |
| Accordingtoregion | |||||
| Shenzhen | 508,520,026.18 | 100.00% | 407,455,899.14 | 96.00% | 24.80% |
| Sichuan | 16,963,304.20 | 4.00% | -100.00% | ||
| Accordingtosalesmodel | |||||
| Directsales | 508,520,026.18 | 100.00% | 424,419,203.34 | 100.00% | 19.82% |
(2)Theindustries,products,regionsorsalesmodelaccountingforover10%oftheCompany’soperatingrevenueoroperatingprofit
√Applicable□Notapplicable
InRMB
| Operatingrevenue | Operatingcost | Grossprofitratio | Increase/decreaseofoperatingrevenuey-o-y | Increase/decreaseofoperatingcosty-o-y | Increase/decreaseofgrossprofitratioy-o-y | |
| Accordingtoindustries | ||||||
| Autosales | 194,373,092.47 | 184,509,794.34 | 5.07% | -5.15% | -3.74% | -1.39% |
| Autoinspectionandmaintenanceandaccessoriessales | 48,568,032.68 | 38,760,088.93 | 20.19% | 15.88% | 19.18% | -2.22% |
| Propertyrentalandservice | 196,537,676.90 | 71,382,659.79 | 63.68% | 46.01% | 23.95% | 6.46% |
| Jewelrywholesaleandretails | 59,404,147.76 | 55,776,535.88 | 6.11% | 70.43% | 60.47% | 5.83% |
| Accordingtoproducts | ||||||
| Autosales | 194,373,092.47 | 184,509,794.34 | 5.07% | -5.15% | -3.74% | -1.39% |
| Autoinspectionandmaintenanceandaccessoriessales | 48,568,032.68 | 38,760,088.93 | 20.19% | 15.88% | 19.18% | -2.22% |
| Propertyrentalandservice | 196,537,676.90 | 71,382,659.79 | 63.68% | 46.01% | 23.95% | 6.46% |
| Jewelrywholesaleandretails | 59,404,147.76 | 55,776,535.88 | 6.11% | 70.43% | 60.47% | 5.83% |
| Accordingtoregion | ||||||
| Shenzhen | 498,882,949.81 | 350,429,078.94 | 29.76% | 24.93% | 16.60% | 5.02% |
| Sichuan | -100.00% | -100.00% | -5.62% | |||
| Accordingtosalesmodel | ||||||
| Directsales | 498,882,949.81 | 350,429,078.94 | 29.76% | 19.84% | 10.70% | 5.80% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedon
latestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
(3)Incomefromphysicalsaleslargerthanincomefromlabors
√Yes□No
| Industries | Item | Unit | 2021 | 2020 | Y-o-ychanges(+,-) |
| Autosales | Salesvolume | Set | 1,071 | 1,177 | -9.01% |
| Storage | Set | 110 | 122 | -9.84% |
Reasonsfory-o-yrelevantdatawithover30%changes
□Applicable√Notapplicable
(4)PerformanceofthematerialsalescontractandmajorprocurementcontractsthatsignedbytheCompanyuptothereportingperiod
□Applicable√Notapplicable
(5)Constituteofoperationcost
Classificationofindustriesandproducts
InRMB
| Industries | Item | 2021 | 2020 | Y-o-ychanges(+,-) | ||
| Amount | Ratio(%)inoperationcost | Amount | Ratio(%)inoperationcost | |||
| Autosales | Automobile | 184,509,794.34 | 52.28% | 191,680,818.07 | 60.04% | -3.74% |
| Autoinspectionandmaintenanceandaccessoriessales | Accessory,maintenance | 39,971,148.37 | 11.33% | 34,227,425.76 | 10.72% | 16.78% |
| Propertyrentalandservice | Lease,propertymanagementandother | 72,672,237.22 | 20.59% | 58,595,796.21 | 18.35% | 24.02% |
| Jewelrywholesaleandretails | Retailandwholesaleofjewelry | 55,776,535.88 | 15.80% | 34,757,161.55 | 10.89% | 60.47% |
InRMB
| Products | Item | 2021 | 2020 | Y-o-ychanges |
| Amount | Ratio(%)inoperationcost | Amount | Ratio(%)inoperationcost | (+,-) | ||
| Autosales | Automobile | 184,509,794.34 | 52.28% | 191,680,818.07 | 60.04% | -3.74% |
| Autoinspectionandmaintenanceandaccessoriessales | Accessory,maintenance | 39,971,148.37 | 11.33% | 34,227,425.76 | 10.72% | 16.78% |
| Propertyrentalandservice | Lease,propertymanagementandother | 72,672,237.22 | 20.59% | 58,595,796.21 | 18.35% | 24.02% |
| Jewelrywholesaleandretails | Retailandwholesaleofjewelry | 55,776,535.88 | 15.80% | 34,757,161.55 | 10.89% | 60.47% |
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
√Yes□No
1.NewsubsidiaryestablishedinthePeriod
| Name | Established | Fundcontribution(Yuan) | Fundedratio(%) |
| ShanghaiFanyueDiamondCo.,Ltd. | InJune2021 | 1,000,000.00 | 100 |
2.SubsidiaryliquidatedinthePeriod
| Name | Liquidation |
| SichuanTellusJewelryTech.Co.,Ltd. | InAugust2021 |
| AnhuiTellusStarlightJewelryInvestmentCo.,Ltd. | InMarch2021 |
| AnhuiTellusStarlightJinzunJewelryCo.,Ltd. | InJanuary2021 |
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod
□Applicable√Notapplicable
(8)Majorsalesandmainsuppliers
MajorsalesclientoftheCompany
| Totaltopfiveclientsinsales(Yuan) | 77,954,118.89 |
| Proportionintotalannualsalesvolumefortopfiveclients | 15.33% |
| Ratioofthesalesfromrelatedpartiesintotalannualsalesamongthetopfiveclients | 0.00% |
InformationoftopfiveclientsoftheCompany
| Serial | Name | Sales(Yuan) | Proportionintotalannualsales |
| 1 | Client1 | 29,242,478.00 | 5.75% |
| 2 | Client2 | 22,086,017.68 | 4.34% |
| 3 | Client3 | 9,137,885.13 | 1.80% |
| 4 | Client4 | 8,908,897.47 | 1.75% |
| 5 | Client5 | 8,578,840.61 | 1.69% |
| Total | -- | 77,954,118.89 | 15.33% |
Othersituationofmainclients
□Applicable√NotapplicableMainsuppliersoftheCompany
| Totalpurchaseamountfromtopfivesuppliers(Yuan) | 245,777,853.97 |
| Proportionintotalannualpurchaseamountfortopfivesuppliers | 69.64% |
| Ratioofthepurchasefromrelatedpartiesintotalannualpurchaseamongthetopfivesuppliers | 2.04% |
InformationoftopfivesuppliersoftheCompany
| Serial | Suppliers | Procurement(Yuan) | Proportionintotalannualprocurement |
| 1 | Supplier1 | 163,860,138.13 | 46.43% |
| 2 | Supplier2 | 25,080,000.00 | 7.11% |
| 3 | Supplier3 | 21,349,048.59 | 6.05% |
| 4 | Supplier4 | 28,297,345.14 | 8.02% |
| 5 | Supplier5 | 7,191,322.11 | 2.04% |
| Total | -- | 245,777,853.97 | 69.64% |
OthernotesofmainsuppliersoftheCompany
□Applicable√Notapplicable
3.Expenses
InRMB
| 2021 | 2020 | Increase/decreas | Noteofmajorchanges |
| ey-o-y(+,-) | ||||
| Salesexpense | 27,178,175.03 | 17,715,132.43 | 53.42% | Increased8monthsofcostsonay-o-ybasisduetotheestablishmentofsubsidiaryShenzhenJewelryCompanyinAugust2020;therewasareductionofsocietysecurityatthesameperiodofthepreviousyearduetoepidemic |
| Managementexpense | 47,151,316.69 | 39,984,244.07 | 17.92% | Therewasareductionofsocietysecurityatthesameperiodofthepreviousyearduetoepidemic |
| Financialexpense | -4,270,881.74 | -3,305,883.68 | -29.19% | Increasedintheinterestincomeintheyear |
4.R&Dinvestment
□Applicable√Notapplicable
5.Cashflow
InRMB
| Item | 2021 | 2020 | Y-o-ychanges(+,-) |
| Subtotalofcashin-flowfromoperationactivity | 593,319,656.80 | 580,706,758.00 | 2.17% |
| Subtotalofcashout-flowfromoperationactivity | 466,707,921.90 | 471,601,455.12 | -1.04% |
| Netcashflowarisingfromoperatingactivities | 126,611,734.90 | 109,105,302.88 | 16.05% |
| Subtotalofcashin-flowfrominvestmentactivity | 1,589,951,156.88 | 1,465,610,805.84 | 8.48% |
| Subtotalofcashout-flowfrominvestmentactivity | 1,720,644,122.34 | 1,763,400,388.10 | -2.24% |
| Netcashflowarisingfrominvestmentactivity | -130,692,965.46 | -297,789,582.26 | -56.11% |
| Subtotalofcashin-flowfromfinancingactivity | 75,601,270.39 | 42,971,759.33 | 75.93% |
| Subtotalofcashout-flowfromfinancingactivity | 68,563,307.20 | 46,625,829.24 | 47.05% |
| Netcashflowarisingfromfinancingactivity | 7,037,963.19 | -3,654,069.91 | -292.61% |
| Netincreasedamountofcashandcashequivalent | 3,192,929.23 | -192,205,601.18 | -101.66% |
Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata
√Applicable□Notapplicable
| Item | 2021 | 2020 | Y-o-ychanges(+,-) | Note |
| Netcashflowarisingfrominvestmentactivity | -130,692,965.46 | -297,789,582.26 | -56.11% | MainlyduetothecarryingforwardoftransferoftheequityinDongfeng |
| Subtotalofcashin-flowfromfinancingactivity | 75,601,270.39 | 42,971,759.33 | 75.93% | Newlong-termborrowingsfromTellusJinzuanTradingBuildingincreased |
| Subtotalofcashout-flowfromfinancingactivity | 68,563,307.20 | 46,625,829.24 | 47.05% | Minorityshareholders’investmentarereturnduetothewritten-offofSichuanCompany |
| Netcashflowarisingfromfinancingactivity | 7,037,963.19 | -3,654,069.91 | -292.61% | Newlong-termborrowingsfromTellusJinzuanTradingBuildingincreased |
| Netincreasedamountofcashandcashequivalent | 3,192,929.23 | -192,205,601.18 | -101.66% | MainlyduetotheequitytransferofDongfengandincreaseoflong-termborrowing |
Explanationofthereasonsforsignificantdifferencebetweenthenetcashflowfromoperatingactivitiesandthenetprofitoftheyearduringthereportingperiod
□Applicable√Notapplicable
V.Analysisofthenon-mainbusiness
√Applicable□Notapplicable
InRMB
| Amount | Ratiointotalprofit | Causesandexplanation | Whetherbesustainable(Y/N) | |
| Investmentincome | 93,780,306.77 | 53.25% | Incomefromequitydisposalandfinancialmanagement,andtheinvestmentincomerecognizedbyparticipatingenterpriseonequitymethod | N |
| Gain/lossoffair | 663,932.88 | 0.38% | Changeofthefairvalueonoutstanding | N |
| valuechanges | financialproducts | |||
| Assetsimpairment | -774,478.41 | -0.44% | Impairmentlossonvehiclesinstock | N |
| Non-operationrevenue | 768,055.65 | 0.44% | Forfeitureofleasedepositsandcivildamagesreceived,etc. | N |
| Non-operationexpenditure | 37,503.15 | 0.02% | Lossonretirementofnon-currentassetsandliquidateddamagesexpenses | N |
VI.Assetsandliability
1.Majorchangesofassetscomposition
InRMB
| Year-endof2021 | Year-beginof2021 | Ratiochanges(+,-) | Notesofmajorchanges | |||
| Amount | Ratio(%)intotalassets | Amount | Ratio(%)intotalassets | |||
| Monetaryfund | 240,582,057.16 | 12.94% | 237,625,698.93 | 13.91% | -0.97% | - |
| Accountreceivable | 18,094,059.92 | 0.97% | 19,828,510.36 | 1.16% | -0.19% | - |
| Inventory | 25,434,925.04 | 1.37% | 22,079,679.93 | 1.29% | 0.08% | - |
| Investmentrealestate | 551,383,294.54 | 29.65% | 568,246,616.13 | 33.26% | -3.61% | - |
| Long-termequityinvestment | 88,310,867.47 | 4.75% | 123,640,955.57 | 7.24% | -2.49% | - |
| Fixassets | 109,438,198.23 | 5.88% | 119,136,917.91 | 6.97% | -1.09% | - |
| Constructioninprocess | 210,197,546.72 | 11.30% | 101,740,485.48 | 5.96% | 5.34% | - |
| Right-of-useassets | 7,336,915.83 | 0.39% | 0.39% | - | ||
| Contractliability | 21,059,311.18 | 1.13% | 18,988,628.13 | 1.11% | 0.02% | - |
| Long-termloans | 86,875,874.39 | 4.67% | 11,171,759.33 | 0.65% | 4.02% | - |
| Leaseliability | 4,474,543.09 | 0.24% | 0.24% | - | ||
Foreignassetsaccountforarelativelyhighproportion
□Applicable√Notapplicable
2.Assetsandliabilitymeasuredbyfairvalue
√Applicable□Notapplicable
InRMB
| Items | Openingamount | Gains/lossesofchangeoffairvalueintheperiod | Accumulativechangesoffairvaluereckonedintoequity | Impairmentaccrualintheperiod | Amountofpurchaseintheperiod | Amountofsaleintheperiod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| 1.Tradingfinancialassets(excludingderivativefinancialassets) | 314,013,869.86 | 918,973.98 | 1,582,280,000.00 | 1,484,500,000.00 | 412,712,843.84 | |||
| Abovetotal | 314,013,869.86 | 918,973.98 | 1,582,280,000.00 | 1,484,500,000.00 | 412,712,843.84 | |||
| Financialliabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
WhethertherehavemajorchangesonmeasurementattributesformainassetsoftheCompanyinreportperiodornot
□Yes√No
3.Rightoftheassetsrestrainedasoftheperiod-end
FoundmoreinAuditingReport2021releasedonJuchaoWebsiteonthesamedate:V.“51-Assetssubjecttorestrictionsonownershiporuse”carryintheannotationoffinancialstatementVII.InvestmentAnalysis
1.Overallsituation
√Applicable□Notapplicable
| Investmentamountintheperiod(Yuan) | Investmentamountatsameperiodoflastyear(Yuan) | Changes(+,-) |
| 141,744,792.01 | 134,347,000.00 | 5.51% |
2.Themajorequityinvestmentobtainedinthereportingperiod
√Applicable□Notapplicable
InRMB
| Nameofinvestedcompany | Principalbusiness | Methodofinvestment | Amountofinvestment | Shareholding | Capitalsources | Partners | Termofinvestment | Typeofproducts | Statusasofthebalancesheetdate | Expectedreturn | Currentinvestmentprofitandloss | Whetherlitigation | Dateofdisclosure(ifapplicable) | Indexofdisclosure(ifapplicable) |
| ShanghaiFanyueDiamondCo.,Ltd. | Jewelrybusiness | Newestablished | 1,000,000.00 | 100.00% | Ownfunds | N/A | Nofixeddeadline | Salesofdiamonds,jewelryandimport&exportofgoods | Completed | 0.00 | -240,741.66 | N | ||
| Total | -- | -- | 1,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -240,741.66 | -- | -- | -- |
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√NotapplicableTheCompanyhasnosecuritiesinvestmentduringthereportingperiod
(2)Derivativeinvestment
□Applicable√NotapplicableTheCompanyhasnoderivativeinvestmentduringthereportingperiod
5.Applicationofraisedproceeds
□Applicable√NotapplicableTheCompanyhasnoapplicationofraisedproceedsduringthereportingperiod
VIII.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhasnomajorassetssoldduringthereportingperiod
2.Salesofmajorequity
√Applicable□Notapplicable
| Counterparty | Equitysold | Sellingday | Tradingprice(10thousandyuan) | Netprofitcontributedbytheequitytothelistedcompanyfromperiod-begintothedateofsales(10thousandyuan) | Impactonthecompany | Ratioofthenetprofitcontributedtothelistedcompanyfromequitysalestothetotalnetprofit | Pricingprinciple | Whetheritisarelatedtransaction(Y/N) | Affiliationwiththecounterparty | Whethertheequityinvolvedhasbeenfullytransferred | Whethertheimplementationisonschedule,andexplainthereasonsandmeasuretakenbytheCompanyfornotimplementedasplanned | Dateofdisclosure | Indexofdisclosure |
| HansIndustryInvestment | 25%equityofShenzhenDongfe | 2021-09-26 | 10,499.05 | 0 | Impactoftheprojectontotal | 37.58% | Marketprice | N | N/A | Y | Implementedasscheduled | 2021-10-16 | Foundmorein“NoticeonProgressof |
| Co.,Ltd. | ngMotorCo.,Ltd. | profitoftheCompanywasapproximately66.17millionyuan | Disposalof25%EquityinShenzhenDongfengMotorCo.,Ltd.”(NoticeNo.:2021-045)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
IX.AnalysisofmainholdingCompanyandstock-jointlycompanies
√Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%
InRMB
| Companyname | Type | Mainbusiness | Registercapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ShenzhenAuto | Subsidiary | Salesofautoand | 58.96million | 469,156,780. | 399,589,039. | 36,034,018.0 | 87,485,071.74 | 61,966,279.3 |
| IndustryandTradeCorporation | accessories | yuan | 78 | 12 | 5 | 5 | ||
| ShenzhenSDGHuariAutoEnterpriseCo.,Ltd. | Subsidiary | Automaintenanceandproductionandsalesofaccessories | $5million | 82,337,832.36 | 31,501,995.37 | 39,729,074.81 | 5,405,825.85 | 3,964,557.97 |
| ShenzhenZhongtianIndustrialCo,.Ltd. | Subsidiary | Propertyrental | 366.2219millionyuan | 649,982,920.75 | 456,301,971.03 | 99,043,645.71 | 50,517,425.98 | 38,425,192.93 |
| ShenzhenHuariToyotaAutosalesServiceCo.,Ltd. | Subsidiary | Autosales | 2millionyuan | 90,295,930.45 | 11,184,426.27 | 245,772,043.22 | 1,623,189.55 | 914,408.79 |
| ShenzhenXinyongtongAutomobileTestingEquipmentCo.,Ltd. | Subsidiary | Propertyrental | 19.61millionyuan | 17,772,462.82 | 11,439,984.74 | 7,054,168.59 | 2,859,091.89 | 2,652,289.26 |
| ShenzhenTellusXinyongtongAutomobileDevelopmentCo.,Ltd. | Subsidiary | Propertyrental | 32.9millionyuan | 94,129,713.51 | 73,621,338.35 | 13,920,281.77 | 7,651,191.50 | 5,744,189.28 |
| ShenzhenTellusChuangyingTechnolog | Subsidiary | Propertyrental | 14millionyuan | 18,808,436.37 | 15,333,132.73 | 5,067,924.31 | 2,826,362.89 | 2,531,629.41 |
| yCo.,Ltd. | ||||||||
| ShenzhenTellusBaokuSupplyChainTech.Co.,Ltd. | Subsidiary | Purchase,salesandleasingofgoldjewelryandpreciousmetalproducts,cofferleaseandwarehousingservices | 50millionyuan | 49,555,807.50 | 46,842,194.88 | 51,555,888.99 | -1,871,658.06 | -1,871,707.97 |
| ShenzhenJewelryIndustryServiceCo.,LTD | Subsidiary | Jewelleryfairplanning,jewelleryonconsignment,exhibitionplanning,conferenceservicesandmarketingplanning | 100millionyuan | 32,767,527.26 | 5,312,125.43 | 7,229,742.64 | -6,829,081.77 | -6,835,081.75 |
| ShenzhenZungFuTellusAutoServiceCo.,Ltd. | JointstockCompany | Carsalesandmaintenance | 30millionyuan | 168,505,369.34 | 78,194,012.41 | 1,196,335,565.98 | 28,089,762.03 | 26,521,546.61 |
| ShenzhenTellusGmanInvestmentCo.,Ltd. | JointstockCompany | Investmentinindustry,propertymanagementandleasing | 123.70496millionyuan | 412,219,228.87 | 94,981,481.56 | 94,989,415.30 | 28,357,306.11 | 19,647,999.36 |
Particularaboutsubsidiariesobtainedordisposedinreportperiod
√Applicable□Notapplicable
| Name | Waytoobtainedanddisposeinthe | Impactonoveralloperationand |
| Period | performance | |
| ShanghaiFanyueDiamondCo.,Ltd. | Newlyestablished | AnimportantpartofthejewelrythirdpartyoperationservicestrategyoftheCompany,theShanghaiFanyueisinprogressofconstructionin2021andwithnetprofitof-240,000yuanfor2021. |
X.StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableXI.Futuredevelopmentprospects
1.DevelopmentstrategyDuringthe14thFive-YearPlanperiod,thecompanywillbebasedonthenewdevelopmentstage,centeronthestrategicideasof“adheringtothecomprehensivevaluecrossingtheeconomiccycle,usingservicestoenhancethevaluechain,seekingcapitalassignment,anddeeplycultivatingthedevelopmentpatternofthethirdpartyofjewelry”,coordinateandpromotetheworkthroughouttheyear,concentratesuperiorresources,dynamicallyadjustthefocusofmainbusiness,andstrivetocreatenewhighsinqualityandefficiency.Sincethecompanyformulatedthestrategicplantotransformintoathird-partycomprehensiveoperationserviceproviderinthejewelryindustryin2014,ithasbeenunswervinglypromotingstrategictransformationandprojectimplementationinaccordancewiththeestablishedstrategy.Afteryearsofexplorationandattempts,substantialresultshavebeenachieved.Inthefuture,thecompanywillcontinuetogodeepintothethird-partyserviceplatformforjewelry,deepentheexpansionofthethird-partyservicesforjewelry,promoteindustrialupgrading,improveproductioncapacityandefficiency,andstrivetobecomethemostinfluentialthird-partycomprehensiveserviceproviderinthedomesticjewelryandjadeindustry.Closelyfocusonthedecompositionandimplementationoftheannualgoalsofthe“14thFive-Year”strategicplan,andmakeoverallplansforvarioustasksfromfourperspectives,i.e.long-termperspective,implementation,operability,andactualresults,andleadhigh-quality&healthydevelopmentwithhigh-qualitybusinessplans.
2.Businessplanfor2022In2022,thecompanywillcontinuetodeepentheexpansionofthird-partyservicesforjewelry,fulfilltheTellusspiritof“fairness,diligence,hardwork,andreality”,andpromotetheformationofateamoffightersthatworktogetherandhavethesameresonance.
(1)StrengthentheempowermentofpartybuildinganddrawconcentriccirclesfordevelopmentFullyimplementtherequirementsofpartybuildingworkinthenewera.Reinforcetheories,andcontinuetodoagoodjobinthestudyandeducationofpartymembersasrequired.Promotetheintegrateddevelopmentofparty
buildingandmanagement,createacharacteristicpartybuildingof“oneenterprise,onebrand”,anddetermineasecretaryproject.Setupavanguardservicepostforpartymembers,andorganizepartymemberstoparticipateinvoluntaryserviceactivitiesanddogooddeedsforthepeoplearoundthem.
(2)Third-partybusinessofjewelry:seekbreakthroughsindevelopment,andseekpracticalresultsininnovationImprovethebusinessmanagementsystem,improvethesafeandefficientoperationinternalcontrolsystem,establishatalenttrainingmechanismforjewelry,andactivelyexploreinnovativetalentselectionandtrainingmodelsbyformulatingeffectivekeypostsuccessorandreservetalentselectionplanstocreateathird-partyhighqualitytalentteamforjewelry.ShenzhenJewelryCompanywillconsolidateandstrengthentheexistingcompetitivepearlcategories,integrateupstreamresources,andbuildaseawaterpearltradinganddistributioncenterfacingtheAsia-Pacificregion;learnfromthedevelopmentmodelofcompetitivecategoriestoachievebreakthroughsinthedevelopmentofdiamonds,coloredgemsandothercategories;expandtheservicecoverageandandbusinessscopeofthebondedplatform,expandbusinesspromotionideas,createspecialinternationalbondedjewelryfairsofShenzhenJewelry,formabrandeffect,andradiatethewholecountry.Baokusupplychainwilloptimizethebusinessprocessofgoldpurchaseandsale,andactivelyexplorethesupplychainbusinessofothergoldjewelrycategories.Thethird-partyecosystemofJewelrywillcontinuetoactivelyexplorethird-partyprojectsofthejewelrythatcangivefullplaytoitsownadvantages.
(3)CommercialoperationmanagementbusinessTellusGoldDiamondTradingBuilding:Intermsofengineeringconstruction,workhard,speedupandstriveforexcellence,fulfillthecompletionacceptanceaheadofschedule,andstrivetomeettheconditionsforcommercialtenantstoenterfordecorationbeforetheendoftheyear.Intermsofinvestmentpromotionandoperation:linkvariousprojectstostrengthenthepublicityandpromotionefforts,strengthentheteammanagementforinvestmentpromotion,focusontargetcustomergroups,andtakemultiplemeasurestocompletethedecoration,procurement,investmentpromotionandotherpreparationsfortheopeningofTellusGoldDiamondTradingBuildingwithhighquality.TellusJewelryBuildingwillprovidesincereservicesandcarryoutcharacteristicoperation,adheretothepurposeofservingcustomerswholeheartedly,innovatetheoperationserviceconcept,improvethesupportingfacilitiesandequipmentoftheBuilding,coordinatetheintegrationandpromotionof“ShenzhenJewelry”,“Baoku”and“entrepreneurshipandinnovation”projects,andbuildaprocurementplatformof“one-stop”supportingservices.
TellusLifeExperienceHallwillstrivetoreachanewhighintheinvestmentattractionrate,continuetoimprovethequalityandserviceoftheexperiencehallthroughdigital,intelligentandrefinedmanagement,andcreateamorecomfortableshoppingenvironment.Traditionalpropertywillpaycloseattentiontotheimplementationofvarioustasks,strengthentheplanning,investmentpromotion,packagingandmarketpositioningoftheproperty,acceleratethequalityimprovement,increasetheaddedvalueofproperty,andmaximizetheoveralllevelofpropertyoperatingincome.
(4)AutomotiveaftermarketbusinessIntermsofautomobilesales,thecompanywillimplementasystematicbrandpromotionplan,improvethequalityofmarketingactivities,paycloseattentiontotheflowofcustomersinstores,andattractmorecustomers.Intermsofmaintenanceservices,thecompanywillimprovecustomerretentionandcustomerretentionrates,andtheannualvisitingfrequencyandannualoutputvalueofeachcustomer.Intermsoftestingservices,thecompanywilldevelopitsownbasiccustomers,reformtheexistingbusinessmethods,andintroducetestingreceptionconsultants.
(5)ImprovethetalentechelonconstructionsystemandcomprehensivelyenhancethequalityoftalenttrainingAttracttalentsbyoptimizingtherecruitmentchannelsandevaluatingtheentryandleavingsituation.Improvetherankpromotionsystemandintensifythetrainingofreservetalentsandsuccessors.Explorenewmodelsofmodernhumanresourcesmanagement,optimizeandimprovemanagementefficiency,andstimulateorganizationalvitality.
(6)StrictlyimplementandkeepunremittingeffortstodoagoodjobinpandemicpreventionandcontrolPaycloseattentiontothepreventionandcontrolofthepandemicandensureallmeasuresareputinplace.Timelyandefficientlycompletetheinformationreportingofpandemicpreventionandcontrol,andensurethatemployeesconductnucleicacidtestinginatimelymanner.Strengthenresponsibilities,prearrangeplanningforpandemicpreventionandcontrol,andcarryoutworkinaforward-lookingmannerbasedonactualconditions.
(7)Doagoodjobinsafetymanagement,eliminatepotentialsafetyhazards,andensurezerosafetyproblemsImplementtheresponsibilityofsecurityprincipal,andorganizethesigningofthecompany'ssafetyresponsibilityagreement.Improvethecompilationofsafetyproductionmanagementsystems,innovatesafetymanagementwork,andcompletethepilotprojectofspecialchecklistsinBuxinarea.Carryoutsafetypublicitytrainingandemergencydrills,andinvestigateandrectifypotentialsafetyhazards.
(8)Continuetopromotemanagementimprovementandinnovationandoptimization
Firmlyadheretothemanagementimprovementstrategyof“horizontalbenchmarking,identifyinggaps;verticalbenchmarking,surpassingourselves”,keepupwiththefirstclass,strivetocatchup,challengingoneself,andcontinuouslyupgradefromtheaspectsofoperation,organization,finance,informatizationandhumanresources.Createaworkstylethatadvocatesinnovation,establishandimprovetheinnovationincentiveandfaulttolerancemechanism,buildaplatformforsharingandpromotinginnovationachievements,andbuildaninternaldrivingforceforenterprisedevelopment.
3.PossiblerisksandcountermeasuresIntheprocessofstrategyimplementationandprojectoperation,wewillobjectivelyandclearlyrecognizethepossiblerisks,andtakeactiveandeffectivemeasurestopreventthem.
(1)Risk1:RiskfrommarketvolatilityAffectedbyinternationalsituation,epidemicinandoutofChinaandotherfactors,domesticeconomicgrowthisslowingdown,thepressureofindustrialrestructureisincreasing;outbreaksofCOVID-19recursfromtimetotime,causingasignificantimpactontheeconomicdevelopment,theoveralleconomicenvironmentbringsuncertainimpactontheCompany’soperation.Countermeasures:inresponsetothisrisk,thecompanywillactivelytakevariouspreventivemeasures.Firstly,continuetostrengthenmanagement,improveefficiencythroughscientificmanagement,tapthepotentialtoincreaserevenue,andcomprehensivelyimprovetheprofitabilityoftheoriginalbusiness;secondly,firmlypromotethepaceofstrategictransformation,drivingthetransformationthroughinnovativebusinessmodels;exploittheincrementalmarkets,expandingbusinessscaleandfindingnewprofitgrowthpoints,andcontinuouslyenhancethemarketinfluenceoftheCompany,providingafavorablefoundationforthelong-termstabledevelopmentoftheCompany.
(2)Risk2:LackoftalentsrestrictsthetransformationanddevelopmentofenterprisesDuringtheperiodofenterprisetransformationanddevelopment,withtherapidexpansionofnewbusinessscale,enterpriseshaveanincreasingdemandforallkindsoftalents,whethertechnicalormanagementtalents.However,theexistingtalentteamisgraduallyunabletomeettherequirementsofdevelopment.Countermeasures:formulate“top-down”talenttraininggoals,andestablish“bottom-up”talenttrainingplans.Withthehelpofprofessionalhumanresourcesconsultants,formulatetalenttrainingandintroductionplansincombinationwiththethird-partystrategyofjewelryandthetalenttrainingcycle,sothatthetalenttrainingplanandtheenterprisedevelopmentstrategyare“inharmony”.Establishunselfish,diligentandtruth-seekingworkstyle,improvecohesionandexecution,andensurethestabilityofenterprisetransformation.XII.Receptionofresearch,communicationandinterviewduringthereportingperiod
√Applicable□Notapplicable
| Time | Location | Way | Type | Receptiontarget | Maincontentsofthediscussionandinformationprovided | Basicsituationindexofinvestigation |
| 2021-01-06 | TheCompany | Telephoning | Individual | Investor | ConsultingtheearningsforecastoftheCompany | Notapplicable |
| 2021-01-07 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-01-08 | TheCompany | Telephoning | Individual | Investor | ConsultingtheearningsforecastoftheCompany | Notapplicable |
| 2021-01-15 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-01-21 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-02-23 | TheCompany | Telephoning | Individual | Investor | Consultingsharereductionoftheshareholders | Notapplicable |
| 2021-03-03 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompanyandshareprice | Notapplicable |
| 2021-03-11 | TheCompany | Telephoning | Individual | Investor | ConsultingmainbusinessoftheCompany | Notapplicable |
| 2021-03-25 | TheCompany | Telephoning | Individual | Investor | Consultingthedisclosurescheduleforannualreport | Notapplicable |
| 2021-04-08 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-04-13 | TheCompany | Telephoning | Individual | Investor | ConsultingfuturedevelopmentplanoftheCompany | Notapplicable |
| 2021-04-19 | TheCompany | Telephoning | Individual | Investor | Consultingnumberoftheshareholders | Notapplicable |
| 2021-04-28 | TheCompany | Telephoning | Individual | Investor | ConsultingautomotivebusinessoftheCompany | Notapplicable |
| 2021-05-11 | TheCompany | Telephoning | Individual | Investor | ConsultingdividenddistributionoftheCompany | Notapplicable |
| 2021-05-18 | TheCompany | Telephoning | Individual | Investor | ConsultingstockpriceoftheCompany | Notapplicable |
| 2021-05-26 | TheCompany | Telephoning | Individual | Investor | ConsultingfuturedevelopmentplanoftheCompany | Notapplicable |
| 2021-05-28 | TheCompany | Telephoning | Individual | Investor | ConsultingtheliabilityinsurancepurchasebytheCompanyfordirectors,supervisorsandsenior | Notapplicable |
| executives | ||||||
| 2021-06-17 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-06-28 | TheCompany | Telephoning | Individual | Investor | Consultingtheearningsforecastforsemi-annual | Notapplicable |
| 2021-07-02 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompanyforfirsthalfoftheyear | Notapplicable |
| 2021-07-08 | TheCompany | Telephoning | Individual | Investor | Consultingtheearningsforecastforsemi-annual | Notapplicable |
| 2021-07-09 | TheCompany | Telephoning | Individual | Investor | Consultingtheearningsforecastforsemi-annual | Notapplicable |
| 2021-07-26 | TheCompany | Telephoning | Individual | Investor | ConsultingbusinessoftheCompanyandstockprice | Notapplicable |
| 2021-08-03 | TheCompany | Telephoning | Individual | Investor | ConsultingbusinessoftheCompany | Notapplicable |
| 2021-08-26 | TheCompany | Telephoning | Individual | Investor | ConsultingbusinessoftheCompany | Notapplicable |
| 2021-08-31 | TheCompany | Telephoning | Individual | Investor | ConsultingtheliabilityinsurancepurchasebytheCompanyfordirectors,supervisorsandseniorexecutives | Notapplicable |
| 2021-09-01 | TheCompany | Telephoning | Individual | Investor | ConsultingbusinessoftheCompany | Notapplicable |
| 2021-09-16 | TheCompany | Telephoning | Individual | Investor | ConsultingwhethertheCompanyisinterestedinmergers&acquisitions | Notapplicable |
| 2021-09-24 | TheCompany | Telephoning | Individual | Investor | ConsultingtheperformanceresultsofQ3 | Notapplicable |
| 2021-10-13 | TheCompany | Telephoning | Individual | Investor | Consultingsharereductionoftheshareholders | Notapplicable |
| 2021-10-27 | TheCompany | Telephoning | Individual | Investor | ConsultingoperationoftheCompany | Notapplicable |
| 2021-11-10 | TheCompany | Telephoning | Individual | Investor | ConsultingbusinessoftheCompany | Notapplicable |
| 2021-11-23 | TheCompany | Telephoning | Individual | Investor | ConsultingfutureplanningoftheCompany | Notapplicable |
| 2021-12-08 | TheCompany | Telephoning | Individual | Investor | Consultingnumbersoftheshareholders | Notapplicable |
| 2021-12-23 | The | Telephoning | Individu | Investor | Consultingoperationofthe | Not |
| Company | al | Company | applicable | |||
| 2021-12-29 | TheCompany | Telephoning | Individual | Investor | ConsultingtheperformanceresultsofQ4 | Notapplicable |
SectionIV.CorporateGovernance
I.CorporategovernanceoftheCompany
Duringthereportingperiod,theCompanystrictlyfollowtherelevantprovisionsoftheCompanyLaw,SecuritiesLaw,RulesGoverningtheListingofStockonShenzhenStockExchange,GuidelinesforStandardizedOperationofListedCompaniesofShenzhenStockExchangeandotherrelevantlawsandregulations,continuouslyimprovethecorporategovernancestructureoftheCompanyandperfectedtheinternalcontrolsystem.Duringthereportingperiod,theCompanyoperatesstandardizedwithstrongindependenceandnormalregulationininformationdisclosure,actualgovernanceoftheCompanymeetstherequirementsofthenormativedocumentsonthegovernanceoflistedcompanies.Mainaspectsofthecorporategovernanceareasfollows:
1.ShareholdersandShareholdersGeneralMeetingConveningandholdingproceduresoftheshareholdersgeneralmeeting,deliberationproceduresanddecision-makingprocessareincompliancewiththerelevantregulationsandrequirementsofCompanyLaws,ArticleofAssociationandRulesofProceduresofShareholdersGeneralMeeting.Toconveneandholdtheshareholdersgeneralmeetingcantreatallshareholdersfairly,inparticular,toensurethatsmallandmedium-sizedshareholdershaveequalrightsaccordingtothesharestheyhold.TheCompanyseriouslyperformingtheManagementofInternetVotingatShareholdersGeneralMeetingtoensurethatallshareholdershavetherightstoparticipateandvoteindecision-makingmattersandfullyexercisetheirrights.Lawyerswerepresentatallshareholders’generalmeetingtoeffectivelysafeguardthelegitimaterightsandinterestofthelistedcompanyandallshareholders.TheCompanyalsocommunicatewithsmallandmedium-sizedshareholdersthroughinteractiveeasy,theinvestorrelationssectionontheofficialwebsiteandtelephoning,guaranteeasmoothandfairinformationexchangewiththesmallandmedium-sizedshareholdersandfullylistentotheappealsandsuggestionsfromsmallandmedium-sizedshareholders.BODconvenedandheldtheAGMof2020andoneextraordinaryshareholders’generalmeetingduringthereportingperiod.Andexercisetheirauthoritytoformingtheeffectiveresolutions,inaccordancewiththelawsandregulations,ArticleofAssociationsandRulesofProcedureoftheShareholders’GeneralMeeting.
2.DirectorsandBoardofDirectors(BOD)Duringthereportingperiod,therewere9membersintheBOD,including3independentdirectors.NumberoftheBODandstructureofthepersonnelcomplywiththerequirementsofrelevantlawsandregulationsandArticleofAssociation.UndertheBoardofDirectors,thereare3specializedcommitteesincludingstrategycommittee,auditingcommitteeandremunerationandappraisalcommittee.Eachspecializedcommitteestrictlycomplieswiththeprovisionofrelevantmechanismsandperformtheirresponsibilities,whicheffectivelystrengthenedthestandardizedoperationoftheworkofBODandprovidedaprofessionaladviceandreferenceforthe
decision-makingfromtheBoard.Duringthereportingperiod,underthelawsandregulations,theArticleofAssociation,RulesofProcedureoftheBODandrulesofproceduresforspecializedcommittees,10meetingsoftheBoardand4meetingsofthespecializedcommitteeswereheld.Conveningandholdingproceduresofthemeetings,deliberationproceduresanddecision-makingprocessareincompliancewithrelevantprovisions;directorsareabletoattendtheMeetingoftheBoardinaseriousandresponsiblemanner,activelyparticipateinrelevanttraining,familiarizerelevantlawsandregulationsandunderstandtheirrights,obligationsandresponsibilitiesasdirectors;membersoftheBoardhaveareasonableprofessionalknowledgestructure,andareabletoperformdutiesdiligentlytosafeguardtheoverallinterestoftheCompany;theindependentdirectorsexpressedtheirpriorapprovalandindependentopinionsonrelevantmattersinafairanddiligentmannertoenhancethescientificandimpartialdecision-makingoftheBoard.
3.SupervisorsandBoardofSupervisors(BOS)Duringthereportingperiod,BOSoftheCompanyconsistedof5supervisors,including2employeerepresentative,thenumberoftheBOSandstructureofthepersonnelcomplywiththerequirementsofrelevantlawsandregulationsandArticleofAssociation.Underthelawsandregulations,theArticleofAssociation,RulesofProcedureoftheBOS,5meetingsoftheBOSwereheldduringthereportingperiod.BOSsupervisetheoperationconditions,financialstatusaswellwethelegalcomplianceofthedirectorsandseniorexecutivesinperformingtheirduties,andsafeguardthelegitimaterightsandinterestoftheCompanyanditsshareholders.
4.InformationdisclosureandinvestorrelationsmanagementStrictlyaccordingtotherequirementofManagementMechanismoftheInformationDisclosure,theCompanydesignatesecretaryoftheboardtoberesponsiblefortheinformationdisclosureandreceivingvisitsandinquiriesfromtheshareholders.Anddiscloserelevantinformationtruthfully,accurately,completelyandtimelyinseriouscompliancewithrelevantregulationstoensurethatallshareholdershavetheequalaccesstoinformation.
5.RelationshipbetweenthecontrollingshareholderandlistedcompanyThecontrollingshareholdersexerciserightofcapitalcontributorsthroughshareholders’generalmeetingaccordingtothelaws,theyarenotinterfereinanyotherway,directlyorindirectly,withthedecision-makingandoperationactivitiesoftheCompany,andnoappropriationoffundsfromlistedcompaniesoccurred;theCompanyandcontrollingshareholdershave“5separations”intermsofassets,finance,personnel,organizationandbusiness;BOD,BOSandinternalmanagementbodiesareabletooperateindependentlyandensuringthatmajordecisionsaremadeinaccordancewithstandardizedprocedures.TherearenoroutinerelatedtransactionsoccurredbetweentheCompanyandcontrollingshareholders,whichisdetrimentaltotheinterestoftheCompanyandothershareholders.
6.Performanceevaluationandincentiverestraintmechanism
Theopenandtransparentperformanceevaluationcriteriaandincentiverestraintmechanismfordirectors,supervisorsandseniorexecutivesaregraduallyestablishandimprovesbytheCompany.Theappointmentofseniorexecutivesisopenandtransparent,andincompliancewithlawsandregulations.
7.StakeholdersWhilepursuingtheeconomicbenefitsandsafeguardingtheinterestoftheshareholders,theCompanyisabletofullyrespectingandsafeguardingthelegitimaterightsandinterestofthestakeholders,andcommunicate&cooperatewiththemeffectively.TheCompanylayemphasisontheprotectionofemployeerights,andgivestrongbackingtoexerciseauthorityaccordingtothelawbytheemployeescongressandlaborunion.Duringthereportingperiod,theCompanycultivatedtalentsandthinkhighlyofthesocialresponsibility,paycloseattentiontothesocialandpublicwelfareundertakingsaswell-being,environmentalprotectionandvolunteerservices,whileachievingeconomicbenefits,theCompanyalsoearnsagoodsocialbenefits.Asoftheendofthereportingperiod,actualcorporategovernanceoftheCompanycomplieswiththerequirementsofnormativedocumentswithcorporategovernanceoflistedcompaniesconcernedissuedbyCSRC.
Whethertherearesignificantdifferencesbetweentheactualstateofcorporategovernanceandlaws,administrativeregulationsandtheprovisionwithgovernanceconcernedforlistedcompaniesissuedbyCSRC
□Yes√NoTherearenosignificantdifferencesbetweentheactualstateofcorporategovernanceandlaws,administrativeregulationsandtheprovisionwithgovernanceconcernedforlistedcompaniesissuedbyCSRC
II.IndependenceoftheCompanyrelativetocontrollingshareholderandtheactualcontrollerinensuringtheCompany’sassets,personnel,finance,institutionandbusinessesTheCompanyhasbeenindependentfromthecontrollingshareholdersintermsofbusiness,personnel,asset,institutionandfinance.TheCompanyhasindependentandcompletebusinessandisabletooperateindependently.
1.Business:theCompanybelongstoindependentlegalpersonentity.Beingcompletelyindependentfromcontrollingshareholders,ithasindependentandcompletebusinesssystemandisabletooperateindependently.TheCompanyownsanindependentoperationandservicesystemanditsmajorbusiness.Thereisnointer-competitionbetweentheCompanyanditscontrollingshareholdersandrelatedparties.
2.Personnel:theCompanyestablishescompletelabor,humanresourcesandsalarymanagementsystems.SeniorexecutiveasGM,DeputyGM,CFOandSecretaryoftheBoardetc.arereceivesremunerationfromtheCompanyduringtheirofficeterm,andnoonetakespositionintheenterprisesownedbyshareholders.
3.Assets:TheCompanyindependentlyandcompletelyownsthebusinesssystemandunderlyingassetsrelatedto
theoperation,andindependentlyregisters,establishesaccounts,adjustsaccountsandmanagestheassets,andtheassetsareindependentofthecontrollingshareholdersandotherenterprisescontrolledbythem.
4.Finance:theCompanyhasindependentfinancialaccountingdepartmentwhichsetindependentaccountingcalculationsystemandfinancemanagementsystem.NocontrollingshareholderintervenesinthecapitalapplicationoftheCompany.TheCompanyopensseparatebankaccounts.NocapitalissavedinthefinancialCompanyorsettlementcenteraccountcontrolledbysubstantialshareholderorotherrelatedparties;theCompanydoesnotsharebankaccountwithcontrollingshareholdersandotherenterpriseundertheircontrol.AndTheCompanypaystaxesbylawindependently.
5.Institution:theboard,thesupervisorycommitteeandotherinternalinstitutionsoftheCompanyoperateindependently.AlltheinstitutionsoftheCompanyaresetaccordingtothestandardsrequirementsapplicabletolistedCompanyandactualbusinessnaturesoftheCompany.Ithasindependentofficelocation.
III.Horizontalcompetition
□Applicable√NotapplicableIV.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting
1.AnnualShareholders’GeneralMeetinginthereportperiod
| Sessionofmeeting | Type | Ratioofinvestorparticipation | MeetingDate | Dateofdisclosure | Resolutions |
| AnnualGeneralMeetingof2020 | AGM | 63.60% | 2021-05-13 | 2021-05-14 | FoundmoreinResolutionoftheAnnualGeneralMeetingof2020(NoticeNo.:2021-022)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| FirstExtraordinaryGeneralMeetingof2021 | ExtraordinaryGeneralMeeting | 62.18% | 2021-09-13 | 2021-09-14 | FoundmoreinResolutionoftheFirstExtraordinaryGeneralMeetingof2021(NoticeNo.:2021-035)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.Directors,supervisorsandseniorexecutives
1.Basicinformation
| Name | Title | Workingstatus | Sex | Age | Startdatedofofficeterm | Enddateofofficeterm | Sharesheldatperiod-begin(share) | Numberofsharesincreasedinthisperiod(share) | Numberofsharesdecreasedinthisperiod(share) | Otherchanges(share) | Sharesheldatperiod-end(share) |
| FuChunlong | Chairman | Currentlyinoffice | M | 49 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| HongWenya | Director | Currentlyinoffice | M | 48 | 2021-09-13 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| YangHongyu | Director | Currentlyinoffice | M | 44 | 2021-09-13 | 2024-09-12 | 0 | 0 | 0 | 0 | |
| WuRuikai | Director,GM | Currentlyinoffice | M | 51 | 2021-09-13 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| LouHong | Director | Currentlyinoffice | F | 54 | 2018-02-09 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| LouHong | CFO | Currentlyinoffice | F | 54 | 2018-01-04 | 2024-09-28 | 0 | 0 | 0 | 0 | 0 |
| GuZhiming | Director | Currentlyinoffice | M | 51 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| HuYuming | Independentdirector | Currentlyinoffice | M | 57 | 2018-01-04 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| JiangDinghang | Independentdirector | Currentlyinoffice | M | 59 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| ZhangDong | Independentdirector | Currentlyinoffice | M | 48 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| GuoXiaodong | ChairmanoftheSupervisoryCommittee | Currentlyinoffice | M | 58 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| ZhangBaojun | Supervisor | Currentlyinoffice | M | 52 | 2021-09-13 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| ZengXingyu | Supervisor | Currentlyinoffice | M | 41 | 2021-09-13 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| LiuHaicheng | Employeesupervisor | Currentlyinoffice | F | 53 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| ZhangZheng | Employeesupervisor | Currentlyinoffice | M | 38 | 2018-09-07 | 2024-09-12 | 0 | 0 | 0 | 0 | 0 |
| TanZhong | DeputySecretaryofthePartyCommittee | Currentlyinoffice | M | 54 | 2018-09-07 | 2024-09-28 | 0 | 0 | 0 | 0 | 0 |
| XieJing | DeputyGM | Currentlyinoffice | M | 57 | 2018-10-25 | 2024-09-28 | 0 | 0 | 0 | 0 | 0 |
| QiPeng | DeputyGM | Currentlyinoffice | M | 49 | 2021-09-29 | 2024-09-28 | 0 | 0 | 0 | 0 | 0 |
| QiPeng | Secretaryof | Currentlyin | M | 49 | 2015-12-28 | 2024-09-28 | 0 | 0 | 0 | 0 | 0 |
| theBoard | office | ||||||||||
| LvHang | Director,GM | Leaveoffice | M | 61 | 2018-09-07 | 2021-09-13 | 0 | 0 | 0 | 0 | 0 |
| FengYu | DeputyGM | Leaveoffice | M | 55 | 2006-06-17 | 2021-09-29 | 0 | 0 | 0 | 0 | 0 |
| YuLei | Director | Leaveoffice | F | 54 | 2012-06-06 | 2021-09-13 | 0 | 0 | 0 | 0 | 0 |
| ZhangQuanxun | Director | Leaveoffice | M | 49 | 2015-05-20 | 2021-09-13 | 0 | 0 | 0 | 0 | 0 |
| ChenYangsheng | Supervisor | Leaveoffice | M | 59 | 2017-05-04 | 2021-09-13 | 0 | 0 | 0 | 0 | 0 |
| YangJianping | Supervisor | Leaveoffice | F | 50 | 2018-09-07 | 2021-09-13 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 | 0 | 0 | 0 | 0 |
Duringthereportingperiod,whethertherewasanydepartureofdirectorsandsupervisorsanddismissalofSeniorOfficers
√Yes□NoDuringthereportingperiod,directors,supervisorsandseniorexecutivesoftheCompanyhavelefttheCompanyduetoexpirationoftheirofficeterm.Changesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
| Name | Title | Type | Date | Reason |
| WuRuikai | Director | Beelected | 2021-09-13 | Changethetermofoffice |
| WuRuikai | GM | Appointments | 2021-09-13 | Changethetermofoffice |
| HongWenya | Director | Beelected | 2021-09-13 | Changethetermofoffice |
| YangHongyu | Director | Beelected | 2021-09-13 | Changethetermofoffice |
| ZhangBaojun | Supervisor | Beelected | 2021-09-13 | Changethetermofoffice |
| ZengXingyu | Supervisor | Beelected | 2021-09-13 | Changethetermofoffice |
| QiPeng | DeputyGM | Appointments | 2021-09-29 | Changethetermofoffice |
| LvHang | DirectorandGM | Leavingattheendofthetermofoffice | 2021-09-13 | ChangethetermofofficeLeaveoffice |
| FengYu | DeputyGM | Leavingattheendofthetermofoffice | 2021-09-29 | ChangethetermofofficeLeaveoffice |
| YuLei | Director | Leavingattheendofthetermofoffice | 2021-09-13 | ChangethetermofofficeLeaveoffice |
| ZhangQuanxun | Director | Leavingattheendofthetermofoffice | 2021-09-13 | ChangethetermofofficeLeaveoffice |
| ChenYangsheng | Supervisor | Leavingattheendofthetermofoffice | 2021-09-13 | ChangethetermofofficeLeaveoffice |
| YangJianping | Supervisor | Leavingattheendofthetermofoffice | 2021-09-13 | ChangethetermofofficeLeaveoffice |
2.Post-holding
Professionalbackground,majorworkingexperienceandpresentmainresponsibilitiesinCompanyofdirectors,supervisorsandseniorexecutive
| Name | Mainworkexperienceandholdingthepost |
| FuChunlong | Bornin1973,Masterdegree,seniorhumanresourcesmanager.HeevertooktheDeputyTeamLeaderinWorkTeamofShenzhenSDGHuatongPackagingCo.,Ltd.,BusinessDeputyGeneralManager/GManddeputydirector/directorofHRDepartmentofShenzhenSDGCo.,Ltd.,andvicePresidentofShenzhenSpecialDevelopmentGroupCo.,Ltd.,SupervisorofShenzhenState-ownedDuty-FreeCommodities(Group)Co.,Ltd,andtheCompany.HeiscurrentlythesecretaryofthePartyCommitteeandChairmanoftheBoardoftheCompany. |
| HongWenya | Bornin1974,Masterdegree,senioraccountant.HepreviouslyservedastheauditmangerofShenzhenLaiyingdaGroup,directoroffinancedept.ofShenzhenCarnivalIndustrialCo.,Ltd,thefinancemanagerofbusinessdeptandauditmanagerofsupervisionandauditheadquartersofGuoxinSecuritiesCo.,ltd,FinancemanagerofShenzhenHuazhenglianCo.,Ltd,deputymanagerofauditdepartmentofShenzhenYunfaGroup,CFOofShenzhenBuildingScienceResearch,deputydirectoroffinancedepartmentofShenzhenCapitalHoldingsCo.,Ltd,thebudgetmanagementandfinancialsupervisionofmunicipalstate-ownedenterprise-statisticandbudgetdivisionofSASAC,andthedeputyheadoffinancedepartandheadofcomplianceandriskcontroldepartofShenzhenKungPengEquityInvestmentManagementCo.,Ltd.HeiscurrentlyamemberofthePartyCommitteeandCFOofShenzhenSpecialDevelopmentGroupCo.,LtdandDirectoroftheCompany. |
| YangHongyu | Bornin1978,Masterdegree,intermediateeconomist.WorkedasanassistanteconomistinGuangdongProvincialPostalStorageandExchangeBureau,staffanddeputydirectorofinvestmentdepartmentofShenzhenCapitalHoldingsCo.,Ltd,thevicepresidentofcorporatedepartmentanddirectoroftheofficeoftheBoardSecretaryofShenzhenSpecialDevelopmentGroupCo.,Ltd.(andapart-timesecretaryoftheboardofShenzhenSpecialDevelopmentGroupCo.,Ltd.,ChairmanofShenzhenSDGInvestmentCo.,Ltd,ChairmanofriskcontrolcommitteeofSDGFuhaiEquityInvestmentFundManagement(Shenzhen)Co.,Ltd.),Director,GMandDeputySecretaryofthePartyCommitteeofShenzhenSDGInformationCo.,Ltd,andsecretaryoftheBoardofShenzhenSpecialDevelopmentGroupCo.,Ltd.CurrentlyheistheDirectoroftheCompany. |
| WuRuikai | Bornin1971,Masterdegree,intermediateeconomistandseniorhumanresourcemanager.Hehasworkedasdeputydirectorofadministrativeoffice,directorofboardsecretariat,andmanagerofPartyandpersonneldepartmentofShenzhenTellusHoldingCo.,Ltd.,thevicepresidentanddirectorofcorporatedepartmentIIofShenzhenSpecialDevelopmentGroupCo.,Ltd.CurrentlyheistheDirectorandGMoftheCompany. |
| LouHong | Bornin1968,aBachelordegreeandsenioraccount.Usedtoworkedasstaffofthefinancialdept.inSuzhouSilkIndustryCompanyandinShenzhenSoutheastSilkCo.,Ltd.;staffoftheaccounting&financialdept.ofShenzhen |
| SpecialEconomicZoneDevelopment(Group)Companyandworkedinaccountingmanagementoffice;alsoworkedasdeputyGMofShenzhenSDGLianchengRealEstateDevelopmentCo.,Ltd.;managerofthefinancialdept.ofShenzhenSDGInvestmentCo.,Ltd.;thebusinessmanageranddeputydirectorinaccounting&financialdept.ofShenzhenSDGGroupCo.,Ltd.;CFOoftheShenzhenSDGRealEstateCo.,Ltd.andDirectorandCFOoftheShenzhenSDGXiaomeishaInvestmentDevelopmentCo.,Ltd.CurrentlyworksastheDirectorandCFOoftheCompany. | |
| GuZhiming | Bornin1971,seniorgoldinvestmentanalyst,onceservedasanemployeeofthebusinessdepartmentofGuilinWanyaJewelleryCo.,Ltd.,businessdirectorofShenzhenChenzhixinJewelleryCo.,Ltd.,businessdirectorofthedomesticdivisionofLukfookGroup(International)Co.,Ltd.,generalmanagerofShenzhenJinglonJewelleryCo.,Ltd.,andChiefOperatingOfficerofShenzhenXingguangdaJewelleryCo.,Ltd.,andcurrentlyservesasthedeputygeneralmanagerofShenzhenYuepengGoldJewellery&GoldCo.,Ltd.,ChairmanandGMofShenzhenLinkGoldTec&Co.,Ltd.andaDirectoroftheCompany. |
| HuYuming | Bornin1965,adoctoralcandidateandaccountingprofessor.Hesuccessivelyservedasateachingassistant,lecturerandviceprofessorofXiamenUniversity,associateprofessoroftheschoolofmanagement,vicedirectoranddirectorofaccountingdepartmentofJinanUniversity,thedeputydeanoftheschoolofinternationalinstituteandschoolofmanagementoftheJinanUniversity.NowheservesastheprofessoranddoctoralsupervisorofschoolofmanagementoftheJinanUniversityandIndependentDirectoroftheCompany |
| JiangDinghang | Bornin1963,amasterdegreeandalawyer.HesuccessivelyservedastheministeroflegalconsultationdepartmentofShenzhenSocialSecurityBureau,deputydirectorofShenzhenLaborBureauOffice,directorofgeneralofficeofShenzhenSDG,GMoftheShenzhenSDGSongliCompany,GMoftheShenzhenCommunicationsIndustryCo.,LtdandapprenticelawyerofGuangdongZhongAnLawsFirm.NowheservesasseniorpartnerofShanghaiALLBRIGHT(Shenzhen)LawOfficeandIndependentDirectoroftheCompany. |
| ZhangDong | Bornin1974,adoctoralcandidate,postdoctoraleconomics,seniorEconomist,seniorgoldinvestmentanalystandGIAResearchGemologist.HesuccessivelyservedasDeputyGMofShenzhenQiangZhuangComputerTech.Co.,Ltd,DeputyGMofShenzhenBrainAgeEconomicandCulturalCo.,Ltd,theassistantpresidentofHongKongLeaderCultureMediaCo.,Ltd,GMofShenzhenZhongShiAdvertisingCo.,Ltd,GMofHeilongjiangLukKwaiFookJewelryLimitedandPresidentofLukKwaiFookJewelryGroup.NoheservesasGMofYijixuanJewelry(Chengdu)Co.,Ltd,andIndependentDirectoroftheCompany. |
| GuoXiaodong | Bornin1964,abachelordegreeandsenioreconomist.HesuccessivelyservedasassistantengineerofShuangliaoAgriculturalMachineryBureauinJilinProvince,engineerofFourthResearchLaboratoryofJilinInstituteofAgriculturalMachinery,managerofGaodaoindustrial(Shenzhen)Co.,Ltd.,ministeroftheengineeringdept.,deputyGMandGMofShenzhenSDGDevelopmentCenterPropertyManagementCompany,deputyGMofShenzhenSDGDevelopmentCenterConstructionSupervisionCompany,DirectorandGMofShenzhenSDGDevelopmentCenterPropertyManagementCompany,deputyGMofShenzhenSDGPropertyCo.,Ltd.,ChairmanoftheSupervisoryCommitteeofShenzhenSDRealEstateCo.,LtdandChairmanoftheSupervisoryCommitteeofShenzhenSDGXiaomeishaTourismDevelopmentCo.,Ltd.NowheservesasChairmanofSupervisoryCommitteeoftheCompany |
| ZhangBaojun | Bornin1970,Masterdegree,intermediateeconomist.Previously,hewasthefundsdispatcher,financeandaccountingdivisionofChinaFirstAutomobileGroupCorporation,managerofcapitalandfinancedepartmentofShenzhenTiandaIndustrialCo.,Ltd,andworkedintheHongliOfficeofShenzhenLuohuBranch,ChinaGuangdaBankandaudit&supervisiondepartmentofShenzhenSpecialEconomicZoneDevelopmentGroupCorporation,thefinancemanagerofShenzhenSDGRealEstateDevelopmentCo.,LtdandShenzhenSDGPropertyManagementCo.,Ltd,thebusinessmanager,deputydirectoranddirectorofaudit&supervisiondepartmentofShenzhenSDG |
| Co.,Ltd.NowheistheGMofauditandriskcontroldepartmentofShenzhenSpecialDevelopmentGroupCo.,LtdandSupervisoroftheCompany. | |
| ZengXingyu | Bornin1981,Masterdegree,senioreconomist.Previously,hewasthefieldfinanceofWenzhouC&UGroup,anaccountingofHan’sLaserTechnologyCo.,Ltd,accountingsupervisor,assistantbusinessmanager,businessmanager,assistantGMoffinancedepartmentandvicepresidentoffinancedepartmentofShenzhenAirport(Group)Co.,ltdandtheCFOofShenzhenQianhaiYejianTechnologyDevelopmentCo.,ltd.NowheisthevicepresidentofaccountingandfinancedepartmentofShenzhenSpecialDevelopmentGroupCo.,LtdandSupervisoroftheCompany |
| LiuHaicheng | Bornin1969,Masterdegree,senioreconomist.Previously,sheworkedasdesignstaffofDongfengAutomobileWheelCo.,Ltd,technicalstaffofShenzhenDongfengMotorCo.,Ltd,thesecretariatstaffofShenzhenAutomobileIndustryAssociation,theemployeeofthemanagementdepartoftheautomotivedivisionoftheCompany,employees,deputygeneralmanagersandmanagerofthebusinessdepartmentoftheCompany.Currently,sheisthedirectorofCompany’ssecretariatoftheBoardandemployeerepresentativesupervisor. |
| ZhangZheng | Bornin1984,aBachelordegree,anintermediateaccountantandseniorhumanresourcemanager.HesuccessivelyservedasseniorauditorofShenzhenBranchofShenzhenZhongqinWanxinAccountantAffairs,thefinancingcommissionerofplanning&financedept.ofSDG,deputymanageroftheplanning&financedept.oftheCompany.NowheservesasdeputymanageroftheauditsupervisiondepartmentandemployeerepresentativesupervisoroftheCompany |
| TanZhong | Bornin1968,hasabachelor’sdegreeandisqualifiedasalawyerandacorporatelegalconsultant,formerlyservedaslegalcounselanddeputymanageroftheEnterpriseManagementDepartmentofShenzhenAutomobileIndustryandTradeCorporation,deputydirectoroftheboardsecretary,legalaffairsrepresentative,andmanageroftheenterprisemanagementdepartmentoftheCompany,generalmanagerandgeneralPartybranchsecretaryofShenzhenSDGHuariAutoEnterpriseCo.,Ltd.,andcurrentlyservesasthefull-timedeputysecretaryofthePartyCommitteeoftheCompany. |
| XieJing | Bornin1965,acitizenshipofCanadian,bachelor’sdegree,andaseniorengineer,nationalregisteredsupervisionengineer.HesuccessivelyservedasstructuralengineerofHunanLightIndustryDesignInstitute,engineeroftheHunanBranchofBankofChina,assistantGMoftherealestatedept.andGMofEngineeringdepartmentofSDG,deputyGMofShenzhenJinchengRealEstateGroupCo.,Ltd.,theexecutivepresidentofShenzhenJiaandaGroupandGMetc.ofthelandreservecenterofWeiyeHolding.CurrentlyheservesasDeputyGMoftheCompany. |
| QiPeng | Bornin1973,master'sdegree,economist,hehasobtainedthequalificationcertificateofsecretaryoftheboardfromShenzhenStockExchange.HesuccessivelyservedassecretarytothepresidentanddirectorininformationcenterofShenzhenSpecialEconomicZoneDevelopment(Group)Co.,Ltd.;deputydirectorinsecretariatoftheboard,anddeputymanagerinenterprisedevelopmentdepartment,andmanagerinautomobilebusinessdepartmentandmanagementdepartmentofShenzhenTellus(Group)Co.,Ltd.;generalmanagerofShenzhenTellusAutomobileServiceChainCo.,Ltd.;generalmanagerofShenzhenTellusNewYongtongAutomobileDevelopmentCo.,Ltd.;directorsecretariatoftheboardofShenzhenTellus(Group)Co.,Ltd.;andnowtheistheDeputyGMandsecretaryoftheBoardoftheCompany |
Post-holdinginshareholder’sunit
√Applicable□Notapplicable
| Name | Nameofshareholder’sunit | Positioninshareholder’sunitn | Startdatedofofficeterm | Enddateofofficeterm | Receivedremunerationfrom |
| shareholder’sunit(Y/N) | |||||
| HongWenya | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | MemberofPartyCommittee,Director,CFO | 2021-06-01 | N | |
| YangHongyu | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | SecretaryoftheBoard | 2021-07-01 | December2021 | Y |
| WuRuikai | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | GMofCorporateManagementandLegalDepartment | 2017-03-01 | August2021 | Y |
| ZhangBaojun | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | GMofAuditandRiskControlDepartment | 2017-03-01 | Y | |
| ZengXingyu | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | DeputyGMofAccountingandFinanceDepartment | 2021-01-01 | Y |
Post-holdinginotherunit
√Applicable□Notapplicable
| Name | Nameofotherunits | Positioninotherunitn | Startdatedofofficeterm | Enddateofofficeterm | Receivedremunerationfromotherunit(Y/N) |
| GuZhiming | ShenzhenYuePengJinJewelryCo.,Ltd | DeputyGM | 2011-05-01 | Y | |
| GuZhiming | ShenzhenLinkGoldTec&Co.,Ltd. | Chairman,GM | 2019-09-24 | Y | |
| HuYuming | JinanUniversity | ProfessorandDoctoralsupervisor,schoolofmanagement | 2003-06-01 | Y | |
| JiangDinghang | ShanghaiALLBRIGHT(Shenzhen)LawOffice | Seniorpartner | 2005-04-01 | Y | |
| ZhangDong | YijixuanJewelry(Chengdu)Co.,Ltd | GM | 2021-09-03 | Y | |
| Post-holdinginotherunit | N/A | ||||
PunishmentofsecuritiesregulatoryauthorityinrecentthreeyearstotheCompany’scurrentandoutgoingdirectors,supervisorsand
seniormanagementduringthereportingperiod
□Applicable√Notapplicable
3.Remunerationfordirectors,supervisorsandseniorexecutivesDecision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutivesDecision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutivesexecutesinstrictaccordancewiththe"SalaryManagementSystemforHeadquartersofShenzhenTellus(Group)Co.,Ltd.","StaffPerformanceManagementSystemforHeadquartersofShenzhenTellus(Group)Co.,Ltd.","ImplementingRulesofRemunerationandAppraisalCommitteeoftheBoardofShenzhenTellus(Group)Co.,Ltd.","AnnualPerformanceManagementApproachesforLeadingGroupMembersofShenzhenTellus(Group)Co.,Ltd."andotherrelevantsystemregulations.
Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuan
| Name | Title | Sex | Age | Post-holdingstatus | TotalremunerationobtainedfromtheCompany(beforetaxes) | WhetherremunerationobtainedfromrelatedpartyoftheCompany |
| FuChunlong | Chairman | M | 49 | Currentlyinoffice | 115.71 | N |
| HongWenya | Director | M | 48 | Currentlyinoffice | 0 | N |
| YangHongyu | Director | M | 44 | Currentlyinoffice | 0 | Y |
| WuRuikai | Director,GM | M | 51 | Currentlyinoffice | 19.67 | N |
| LouHong | Director,CFO | F | 54 | Currentlyinoffice | 82.41 | N |
| GuZhiming | Director | M | 51 | Currentlyinoffice | 0 | N |
| HuYuming | Independentdirector | M | 57 | Currentlyinoffice | 8 | N |
| JiangDinghang | Independentdirector | M | 59 | Currentlyinoffice | 8 | N |
| ZhangDong | Independentdirector | M | 48 | Currentlyinoffice | 8 | N |
| GuoXiaodong | ChairmanoftheSupervisoryCommittee | M | 58 | Currentlyinoffice | 76.62 | N |
| ZhangBaojun | Supervisor | M | 52 | Currentlyinoffice | 0 | Y |
| ZengXingyu | Supervisor | M | 41 | Currentlyinoffice | 0 | Y |
| LiuHaicheng | Employeesupervisor | F | 53 | Currentlyinoffice | 49.34 | N |
| ZhangZheng | Employeesupervisor | M | 38 | Currentlyinoffice | 42.89 | N |
| TanZhong | DeputySecretaryofthePartyCommittee | M | 54 | Currentlyinoffice | 87.14 | N |
| XieJing | DeputyGM | M | 57 | Currentlyinoffice | 146.19 | N |
| QiPeng | DeputyGM,SecretaryoftheBoard | M | 49 | Currentlyinoffice | 79.73 | N |
| LvHang | Director,GM | M | 61 | Leaveoffice | 101.57 | N |
| FengYu | DeputyGM | M | 55 | Leaveoffice | 78.3 | N |
| YuLei | Director | F | 54 | Leaveoffice | 0 | Y |
| ZhangQuanxun | Director | M | 49 | Leaveoffice | 0 | N |
| ChenYangsheng | Supervisor | M | 59 | Leaveoffice | 0 | N |
| YangJianping | Supervisor | F | 50 | Leaveoffice | 0 | Y |
| Total | -- | -- | -- | -- | 903.57 | -- |
VI.Responsibilityperformanceofdirectorsduringthereportingperiod
1.Theboardofdirectorsduringthereportingperiod
| Sessionofmeeting | Dateofmeeting | Disclosuredate | Meetingresolutions |
| The19thExtraordinaryMeetingofthe9thBoardofDirectors | 2021-01-14 | 2021-01-15 | FoundmoreintheResolutionofThe19thExtraordinaryMeetingofthe9thBoardofDirectors(NoticeNo.:2021-001)releasedonSecuritiesTimes,HongKongCommercialDailyand |
| JuchaoWebsite(www.cninfo.com.cn) | |||
| The20thExtraordinaryMeetingofthe9thBoardofDirectors | 2021-02-04 | 2021-02-05 | FoundmoreintheResolutionofThe20thExtraordinaryMeetingofthe9thBoardofDirectors(NoticeNo.:2021-005)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| The21stExtraordinaryMeetingofthe9thBoardofDirectors | 2021-04-13 | 2021-04-14 | FoundmoreintheResolutionofThe21stExtraordinaryMeetingofthe9thBoardofDirectors(NoticeNo.:2021-010)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| The10thSessionof9thBoardofDirectors | 2021-04-15 | 2021-04-16 | FoundmoreintheResolutionofThe10thSessionof9thBoardofDirectors(NoticeNo.:2021-012)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| The11thSessionof9thBoardofDirectors | 2021-04-28 | 2021-04-29 | FoundmoreintheNotice(NoticeNo.:2021-021)releasedonApril29inSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| The12thSessionof9thBoardofDirectors | 2021-08-19 | 2021-08-20 | FoundmoreintheNotice(NoticeNo.:2021-029)releasedonAugust20inSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| The22ndSessionof9thBoardofDirectors | 2021-08-27 | 2021-08-28 | FoundmoreintheResolutionofThe22ndSessionof9thBoardofDirectors(NoticeNo.:2021-030)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| TheFirstExtraordinaryMeetingofthe10thBoardofDirectors | 2021-09-13 | 2021-09-14 | FoundmoreintheResolutionofTheFirstExtraordinaryMeetingofthe10thBoardofDirectors(NoticeNo.:2021-037)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| TheSecondExtraordinaryMeetingofthe10thBoardofDirectors | 2021-09-29 | 2021-09-30 | FoundmoreintheResolutionofTheSecondExtraordinaryMeetingofthe10thBoardofDirectors(NoticeNo.:2021-040)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
| TheFirstSessionof10thBoardofDirectors | 2021-10-22 | 2021-10-23 | FoundmoreintheNotice(NoticeNo.:2021-046)releasedonOctober23inSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(www.cninfo.com.cn) |
2.TheattendingofdirectorstoBoardmeetingsandshareholdersgeneralmeeting
| TheattendingofdirectorstoBoardMeetingandShareholdersGeneralMeeting | |||||||
| Director | TimesofBoardmeetingsupposedtoattendinthereportperiod | TimesofPresence | TimesofattendingtheBoardMeetingbycommunication | Timesofentrustedpresence | TimesofAbsence | AbsenttheMeetingforthesecondtimeinarow(Y/N) | Timesofattendthegeneralmeeting |
| FuChunlong | 10 | 3 | 7 | 0 | 0 | N | 1 |
| HongWenya | 3 | 1 | 2 | 0 | 0 | N | 0 |
| YangHongyu | 3 | 1 | 2 | 0 | 0 | N | 0 |
| WuRuikai | 3 | 1 | 2 | 0 | 0 | N | 0 |
| LouHong | 10 | 3 | 7 | 0 | 0 | N | 2 |
| GuZhiming | 10 | 2 | 8 | 0 | 0 | N | 1 |
| HuYuming | 10 | 2 | 8 | 0 | 0 | N | 1 |
| JiangDinghang | 10 | 3 | 7 | 0 | 0 | N | 2 |
| ZhangDong | 10 | 2 | 8 | 0 | 0 | N | 0 |
ExplanationofabsenttheBoardMeetingforthesecondtimeinarowTherewerenotwoinstancesofnon-attendanceattheBoardMeetinginpersonduringthereportingperiod
3.ObjectionforrelevanteventsfromdirectorsDirectorscomeupwithobjectionaboutCompany’srelevantmatters
□Yes√NoNodirectorscomeupwithobjectionaboutCompany’srelevantmattersinthePeriod
4.Otherexplanationaboutresponsibilityperformanceofdirectors
Theopinionsfromdirectorshavebeenadopted
√Yes□NoDirector'sstatementtotheCompanythataproposalhasbeenorhasnotbeenadopted
Duringthereportingperiod,non-independentdirectors,independentdirectorsoftheCompanycarriedouttheirworksinstrictaccordancewiththeCompanyLaw,SecuritiesLaws,GuidelinesofCorporateGovernanceforListedCompanies,GuidelinesfortheStandardizedOperationofListedCompaniesonShenzhenStockExchangeandArticleofAssociationandRulesofProceduresoftheBOD.Theyperformdutiesfaithfullyanddiligently,activelyattendrelevantMeetingsontimeandcarefullyconsideringallproposals.Withthespecializedknowledgeandexperience,independentdirectorsprovidedprofessionaladviceonthestrategicdevelopment,internalcontrolandmajorbusinessdecisionsoftheCompany,andeffectivelysupervisethefinancialoftheCompany,productionandoperationactivitiesandinformationdisclosure,whichplaysapositiveroleinfuturedevelopmentoftheCompanyandstandardizedoperationandpromotingthemanagementlevels.
VII.Thespecialcommitteesundertheboardduringthereportingperiod
| Committeename | Members | Numberofmeetingsheld | Dateofmeeting | Meetingcontent | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifapplicable) |
| Auditcommittee | HuYuming,YuLei,LouHong,JiangDinghang,ZhangDong | 3 | 2021-02-04 | ReviewofthepreliminaryarrangementsfortheauditoftheAnnualReport2020 | Approved | - | - |
| 2021-04-05 | Reviewofthefinancialstatusandresultsoftheoperationforyearof2020 | Approved | - | - | |||
| 2021-08-27 | ReviewoftherenewaloftheappointmentofRSMCertifiedPublicAccountants(SpecialGeneralPartnership)asthe | Approved | - | - |
| financialauditorandinternalcontrolauditoroftheCompanyforyearof2021 | |||||||
| 薪酬与考核委员会Remunerationandappraisalcommittee | JiangDinghang,FuChunlong,YuLei,HuYuming,ZhangDong | 1 | 2021-08-19 | ReviewandapprovedtheBusinessPerformanceandRemunerationPlanforyearof2020oftheseniorexecutives | Approved | - | - |
VIII.WorksfromSupervisoryCommittee
TheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√NoSupervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod
IX.Particularsofworkforce
1.NumberofEmployees,Professionalcomposition,Educationbackground
| Employeein-postoftheparentCompanyatperiod-end(people) | 122 |
| Employeein-postofmainSubsidiariesatperiod-end(people) | 176 |
| Thetotalnumberofcurrentemployeesatperiod-end(people) | 298 |
| Thetotalnumberofcurrentemployeestoreceivepay(people) | 298 |
| Retiredemployee’sexpensesbornebytheparentCompanyandmainSubsidiaries(people) | 15 |
| Professionalcategories | |
| Typesofprofessionalcategory | Numbersofprofessionalcategory |
| Productionstaff | 0 |
| Salesstaff | 87 |
| Technicalstaff | 75 |
| Financialstaff | 24 |
| Administrationstaff | 112 |
| Total | 298 |
| Educationbackground | |
| Typeofeducationbackground | Numbers(people) |
| Master | 28 |
| Bachelordegree | 85 |
| Juniorcollege | 65 |
| Other | 120 |
| Total | 298 |
2.RemunerationPolicyTheCompanystrictlycomplieswiththe"RemunerationManagementSystemofHeadquartersStaffofShenzhenTellusHoldingCo.,Ltd."and"PerformanceManagementMeasuresforHeadquartersStaffofShenzhenTellusHoldingCo.,Ltd."
3.TrainingprogramsThetrainingworksarefocusesontheimprovementofmiddle-levelmanagersandmanagementskills,theimprovementoftheprofessionalskillsofreservetalentsandcorebackbones.Intheactualtrainingwork,wewillcontinuouslyenrichthetrainingcontents,expandthetrainingform,optimizethetrainingprocess,clarifythetrainingpurpose,andimprovethetrainingeffect.Thespecificmeasuresareasfollows:firstly,enrichtheentrylearningdatabasefornewemployees,andacceleratetheintegrationofnewemployeesintothecompany;secondly,strengthentheprofessionaltrainingofgrassrootsemployees,andimprovethequalityofemployees;thirdly,strengthendepartmentaltrainingquotamanagement,andimprovetheuseefficiencyoftrainingfunds;fourthly,optimizetherewardsrulesofnetworkcollege,andcontinuouslyimprovethelearningatmosphere;thefifthistorefinethemanagementabilityrequirementsandcarryouttargetedtrainingformiddle-levelmanagerstoimprovemanagementcapabilities;thesixthistofocusonexternaltrainingandconductstrategicmanagementskillstrainingtoenhancethehorizonsofseniorpersonnel.
4.Laboroutsourcing
√Applicable□Notapplicable
| Totalhoursoflaboroutsourcing(hours) | 1,408 |
| Totalremunerationpaidforlaboroutsourcing(Yuan) | 69,347.51 |
X.Profitdistributionandcapitalizingofcommonreservesplan
Formulation,ImplementationandAdjustmentofProfitDistributionPolicyEspeciallyCashDividendpolicyduringtheReportingPeriod
√Applicable□Notapplicable
Thecompanyattachesgreatimportancetothereasonablereturnsforinvestors;theArticlesofAssociationclearlydefinesthestandardsandproportionsofcashdividends,thedecision-makingproceduresandmechanisms,andtheformofprofitdistribution.ThecompanystrictlycomplieswiththeArticlesofAssociationandtheresolutionsof
theshareholders'generalmeeting,thedividendsstandardsandproportionsareclear,relevantdecision-makingproceduresandmechanismsarecomplete,theindependentdirectorsareresponsibleandgiveplaytotheirduties,themediumandsmallshareholdershavetheopportunitiestoexpresstheiropinionsanddemands,andthelegitimaterightsandinterestsofmediumandsmallshareholdersarefullymaintained.
| Specialdescriptiononcashdividendpolicy | |
| WhetheritmeetstherequirementsoftheArticleofAssociationortheResolutionoftheGeneralMeeting(Y/N): | Y |
| Whetherthebonusstandardsandproportionisclearandwell-defined(Y/N): | Y |
| Whetherhasacompletedrelevantdecision-makingproceduresandmechanism(Y/N): | Y |
| Whetherindependentdirectorsfulfilldutiesandplayaduerole(Y/N): | Y |
| Minorityshareholderswhetherhasopportunityoffullexpressionandappeals,thelegalinterestoftheminorityarebeingprotectedtotally(Y/N): | Y |
| Asfortheadjustmentandchangeofcashbonuspolicy,theconditionandprocedureswhethermeetsregulationsandtransparent(Y/N): | Y |
TheCompanyisprofitableduringthereportingperiodandtheparentcompanyhaspositiveprofitavailablefordistributiontoshareholderswithoutcashdividenddistributionplanproposed
□Applicable√NotapplicableProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
√Applicable□Notapplicable
| Bonussharesforevery10-share(Share) | 0 |
| Dividendsforevery10-share(Yuan)(Taxincluded) | 0.25 |
| Equitybaseofdistributionplan(Share) | 431,058,320 |
| Cashbonusdistribution(Yuan)(Taxincluded) | 0.25 |
| Cashbonusdistributioninotherways(i.e.sharebuy-backs)(Yuan) | 0.00 |
| Totalcashbonus(includingotherways)(Yuan) | 10,776,458.00 |
| Profitsavailablefordistribution(Yuan) | 24,281,950.19 |
| Ratiooftotalcashdividend(otherwaysincluded)intotalprofitdistribution | 100% |
| Cashdividend | |
| IftheCompany’sdevelopmentstageisinthegrowthperiodandthereisamajorcapitalexpenditurearrangement,theminimum | |
| proportionofcashdividendintheprofitdistributionshouldbe20% |
| Explanationonprofitdistributionorcapitalizingofcapitalreserves |
| WithpurposeofrewardingtheshareholdersandallowsinvestorstoparticipateandsharetheoperationresultsoftheCompany’sdevelopment,pursuittotherelevantmechanismsandregulationasArticleofAssociationandShareholders’ReturnPlanfortheNextThreeYears(2020-2022),andthroughcomprehensiveconsiderationoftheoperationandoverallfinancialstatusoftheCompany,theCompany,planstodistributed0.25yuancashbonus(includingtax)forevery10sharesheldbywholeshareholdersoftheCompanybasedontotalsharecapital431,058,320asof31stDecember2021,total10,776,458.00yuanaredistributedincash,nobonussharesandnopublicreservetransferintosharecapital.theprofitdistributionplanwillbeimplementedafterdeliberationandapprovedbytheshareholders’generalmeeting. |
XI.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableDuringthereportingperiod,theCompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.
XII.Establishmentoftheinternalcontrolmechanismandimplementationduringthereportingperiod
1.EstablishmentandimplementationoftheinternalcontrolDuringthereportingperiod,thecompanyestablishedasystematicandeffectiveinternalcontrolsystemfromthegovernanceleveltotheworkflowlevelandcontinuedtoimproveit.Theboardofdirectorswasresponsiblefortheestablishment,improvementandeffectiveimplementationofinternalcontrol;theauditcommitteeassistedintheformulationandreviewofthecompany’sinternalcontrolsystem,andauditedandsupervisedmajorrelatedtransactions;theauditriskcontroldepartmentwasresponsibleforthespecificorganizationandimplementationofthecompany'sinternalcontrol;thepersoninchargeoftheenterpriseorthedepartmentsundertooktheinternalcontrolworkoftheenterpriseorthedepartments;theboardofsupervisorssupervisedtheinternalcontrolestablishedandimplementedbytheboardofdirectors.ThecompanyestablishedtheaboveorganizationalstructureofinternalcontrolinaccordancewiththeBasicNormsforEnterpriseInternalControlanditssupportingguidelines,definedtheworkobjectivesandresponsibilitiesandauthoritiesofeachpositioninthecompany,andestablishedcorrespondingchecksandbalancesandsupervisionmechanismstoensurethateachpositionshouldperformdutieswithinthescopeofauthority.Accordingtotheidentificationofmajordeficienciesintheinternalcontrolofthecompany'sfinancialreport,onthebasedateoftheinternalcontrolevaluationreport,therewasnomajordeficienciesintheinternalcontroloffinancialreport.Thecompanymaintainedeffectiveinternalcontroloverfinancialreportinginallmajoraspectsinaccordancewiththerequirementsoftheenterpriseinternalcontrolstandardsystemandrelevantregulations.Accordingtotheidentificationofmajordeficienciesintheinternalcontrolofthecompany'snon-financialreport,
onthebasedateoftheinternalcontrolevaluationreport,thecompanyfoundnomajordeficienciesintheinternalcontrolofnon-financialreport.
2.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√NoXIII.Managementandcontrolofthesubsidiariesduringthereportingperiod
| Name | Integrationplan | Progress | Problemsencounteredinintegration | Countermeasuretaken | Solutionprogress | Follow-upresolutionplan |
| Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable | Notapplicable |
XIV.AppraisalReportofInternalControlandAuditReportofInternalControl
1.AppraisalReportofInternalControl
| Disclosuredateoffullinternalcontrolevaluationreport | 2022-04-08 | |
| Disclosureindexoffullinternalcontrolevaluationreport | Juchaowebsite(http://www.cninfo.com.cn) | |
| TheratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsontheCompany'sconsolidatedfinancialstatements | 100.00% | |
| TheratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeontheCompany'sconsolidatedfinancialstatements | 100.00% | |
| DefectsEvaluationStandards | ||
| Category | FinancialReports | Non-financialReports |
| Qualitativecriteria | 1.Significantdefect:a-Fraudofmanagementleadingtomaterialmisstatementsoffinancialresultsorfalsefinancialreports,whichmisleadusersoffinancialstatementsandresultindecision-makingmistakesandlitigation;b-Ineffectivecontrolenvironment; | 1.Significantdefect:a-GreatdecisionsviolatetheCompany’sestablishedprocedure,resultinginsignificantlossestotheCompany;b-SeriousviolationoflawsandregulationsresultsinsignificantlossestotheCompany;c-Importantbusinessesare |
| c-Majorinternalcontroldeficienciesfoundandreportedtothemanagementbuthaven’tbeencorrectedafterareasonabletime;d-Thedecision-makingoftheCompany’smajormattershasnotfulfilledthecorrespondingdecision-makingprocess,resultinginsignificantlossesoftheCompany;e-ImportantbusinessesinvolvingtheCompany’sproductionandmanagementarelackofeffectivecontrol;f-Otherdefectsthatseriouslymisleadthecorrectjudgmentsmadebytheusersofthestatements,resultinginthecompany’smajorcompensation.2.Importantdefects:a-Theselectionandapplicationofaccountingpoliciesdonotfollowthegenerallyacceptedaccountingprinciples;b-Anti-fraudprogramsandcontrolmeasureshavebeennotestablished;c-Correspondingcontrolmechanismforaccountshandlingofunconventionalorspecialtransactionshasnotbeenestablishedorimplementedandhasnothereisnoappropriatecompensatorycontrols;d-Thecontrolstotheperiod-endfinancialreportingprocesshaveoneormoredefectsandcannotreasonablyensurethatthefinancialstatementspreparedaretrueandaccurate.3.Generaldeficiencies:thedeficienciesexceptformajorandsignificantdeficiencies. | lackofsystemcontrolorsystemcontrolfails;d-Seriousbraindrainofcoremanagementorcoretechnicalstaff;e-Significantdeficienciesintheinternalevaluationresultshavenotbeencorrected.2.Importantdefects:a-TheCompanyviolatestheenterpriseinternalregulationsandcausessignificantlosses;b-SeriousbraindrainofbusinesspersonnelintheCompany’skeypositions;c-TheCompany’ssignificantbusinesssystemshavedeficiencies;d-ThesignificantdeficienciesintheinternalcontroloftheCompanyhavenotbeencorrected.3.Generaldeficiencies:deficienciesexceptformajorandsignificantdeficiencies. | |
| Quantitativestandard | 1.Majordeficiencies:misstatementamount>10%oftotalprofit,andabsoluteamount>2millionYuan;2.Significantdeficiencies:5%oftotalprofit<misstatementamount≤10%oftotalprofit,andabsoluteamount>1millionYuan;or1millionYuan<absoluteamount≤2millionYuan,andmisstatementamount>5%oftotalprofit.3.Generaldeficiencies:misstatementamount≤5%oftotalprofit,orabsoluteamount≤1millionYuan | 1.Majordeficiencies:lossamount>1.5%ofowner'sequityattributabletoparentCompany,andabsoluteamount>5millionYuan;2.Significantdeficiencies:0.5%ofowner'sequityattributabletoparentCompany<lossamount≤1.5%ofowner'sequityattributabletoparentCompany,or1millionYuan<absoluteamount≤5millionYuan;3.Generaldeficiencies:lossamount≤0.5%ofowner'sequityattributable |
| toparentCompany,orabsoluteamount≤1millionYuan | ||
| Amountofsignificantdefectsinfinancialreports | 0 | |
| Amountofsignificantdefectsinnon-financialreports | 0 | |
| Amountofimportantdefectsinfinancialreports | 0 | |
| Amountofimportantdefectsinnon-financialreports | 0 | |
2.Auditingreportofinternalcontrol
√Applicable□Notapplicable
| DeliberationsinInternalControlAuditReport | |
| Weconsiderthat:inallmajoraspects,ShenzhenTellusHoldingCo.,Ltd.hasefficiencyinfinancialreportofinternalcontroldated31December2021accordingtoBasicStandardsofInternalControlforEnterpriseandrelevantregulations. | |
| Disclosuredetailsofauditreportofinternalcontrol | Disclosure |
| Disclosuredateofauditreportofinternalcontrol(full-text) | 2022-04-08 |
| Indexofauditreportofinternalcontrol(full-text) | Juchaowebsite(http://www.cninfo.com.cn) |
| OpiniontypeofauditingreportofIC | Standardunqualifiedopinion |
| whetherthenon-financialreporthadmajordefects | No |
CarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA
□Yes√NoTheinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard
√Yes□No
XV.Self-examinationandrectificationofthespecialactionsongovernance
TheCompanyconductsself-examinationinaccordancewiththe“SpecialSelf-ExaminationListoftheGovernanceforListedCompanies”,andthereisaconditionwheretheBODhasnotbeenre-electedintimefortheexpirationofthesession.AftertheexpirationoftheBODandBOS,theCompanyactivelypromotesthechangeofsession.The22
nd
ExtraordinaryMeetingofthe9
th
BoardofDirectorsand16
th
Sessionof9
th
BoardofSupervisorswereheldon
August27,2021andtheFirstExtraordinaryShareholdersGeneralMeetingof2021heldonSeptember13,2021todeliberatedandapprovedtheproposalofgeneralelection,there-electionoftheBODandBOSarecompleted.FoundmoreintherelevantnoticesreleasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite(http://www.cninfo.com.cn).
SectionV.EnvironmentalandSocialResponsibility
I.Majorenvironmental
ThelistedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmentalprotectiondepartment
□Yes√NoAdministrativepunishmentforenvironmentalproblemsduringthereportingperiod
| Nameofcompanyorsubsidiary | Reasonforpunishment | Violation | Punishmentresult | Theimpactontheproductionandoperationoflistedcompanies | TheCompany'srectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentalinformationdisclosedrefertokeypollutersTherewerenoadministrativepenaltiesforenvironmentalissuesduringthereportingperiodfromtheCompanyanditssubsidiariesMeasurestakentoreducingthecarbonemissionsduringthereportingperiodandtheireffectiveness
□Applicable√NotapplicableReasonsfornotdisclosingotherenvironmentalinformationTheCompanyanditssubsidiariesarenotoneofthekeyemissionsunitsannouncedbytheenvironmentalprotectionauthority,andnopenaltiesforviolationoflawsandregulationsduringthereportingperiod.
II.Socialresponsibility
TheCompanyhasalwaysbeencommittedtorepayingshareholders,achievingemployees’value,andcontributingtothesociety.Basedontheprincipleoffairness,thecompanyactivelysafeguardedthelegitimaterightsandinterestsofshareholders;advocatedrealizingself-worthwhilerealizingcorporatevalue,createdanenterpriseatmosphereinwhichthecompanycaresforemployees,employeeslovethecompany,anddevelopharmoniouslytogether;activelyrepaidthesocietyandthepublic,andfulfilledtheresponsibilityofastate-ownedenterprise,participatedincommunityconstructionactivities,donatedtents,grainandoilandothermaterialsforepidemicpreventiontothecommunity,dispatched3employeestohelptheepidemicpreventionworkofthecommunity,andquicklyassembledavanguardofpartymembersintheearlystageoftheepidemictoassistthecommunityincarryingouttemperaturemeasurement,nucleicacidtesting,vaccinationandotherwork;improvedthesafetyproductionsystem,organized37safetyproductiontrainings,andinvestedmorethan2millionyuaninthetransformationofsafetyequipmentandfacilities.
IIIConsolidatedandexpandedtheachievementsofpovertyalleviationandruralrevitalizationTheCompanyactivelyrespondedtotheimplementationoftheruralrevitalizationstrategy,assignedspecialpersonneltocarryoutassistanceworkinChengtianTown,ShantouCity,anddigestedtheagriculturalandsidelineproductsintheassistanceareabypurchasinganddonating,openedupthesaleschannelsofagriculturalproducts,andvigorouslypromotedthelocalpovertyalleviationandruralrevitalizationwithpracticalactions.
SectionVI.ImportantEvents
I.Implementationofcommitment
1.Commitmentsthattheactualcontroller,shareholders,relatedparty,buyersandtheCompanyhavefulfilledduringthereportingperiodandhavenotyetfulfilledbytheendofreportingperiod
√Applicable□Notapplicable
| Commitments | Commitmentparty | Contentofcommitments | Commitmentdate | Commitmentterm | Implementation | |
| Commitmentsforsharemergerreform | ||||||
| Commitmentsinreportofacquisitionorequitychange | ||||||
| Commitmentsinassetsreorganization | ||||||
| Commitmentsmakeininitialpublicofferingorre-financing | ShenzhenTellusHoldingCo.,Ltd. | Other | ThecommitmentstothefulfillmentofinformationdisclosureabouttheCompanybusinessdevelopmentareasfollows:exceptfortheinformationhasbeendisclosedpublicly,theCompanyhasnothadthedisclosedinformationaboutassetacquisitionandbusinessdevelopmentthathasnotbeendisclosedwithinoneyear.Inthefuture,theCompanyshalltimely,accuratelyandadequatelydisclosetherelevantinformationaccordingtotheprogressofnewbusinessandtherelatedrequirements. | October17,2014 | Long-term | Implementing |
| Equityincentivecommitment | ||||||
| Othercommitmentsformediumandsmallshareholders | ShenzhenSpecialDevelopmentGroupCo.,Ltd. | HorizontalCompetition | Inordertoavoidthehorizontalcompetition,theCompany’scontrollingshareholder,ShenzhenSDGhasissuedthe“commitmentletterabouttheavoidanceofhorizontalcompetition”onMay26,2014.Thefullcommitmentletterisasfollows:1.TheCompanyandotherenterprisescontrolledbytheCompanyexceptTellusGrouphaven’toccupiedinanybusinessthatcould | May26,2014 | Long-term | Implementing |
| substantiallycompetewiththemainbusinessesofTellusGroup,andhavenohorizontalcompetitionrelationshipwithTellusGroup. | |||||
| ShenzhenTellusHoldingCo.,Ltd. | Dividendcommitment | From2020to2022,theCompany’sprofitswillfirstbeusedtocoverthelossesofpreviousyears;aftermakingupforlossesofpreviousyears,inthepremisethattheCompany’sprofitsandcashflowcanmeettheCompany'snormaloperationsandlong-termdevelopment,rewardshareholders,theCompanywillimplementpositiveprofitdistributionapproachestorewardtheshareholders,detailsareasfollows:1.TheCompany’sprofitdistributioncanadoptcash,stockorthecombinationofcashandstockorothermethodspermittedbylaw.TheforeigncurrencyconversionratesofdomesticallylistedforeignsharesdividendarecalculatedaccordingtothestandardpriceofHKdollaragainstRMBannouncedbyPeople'sBankofChinaonthefirstworkingdayaftertheresolutiondateoftheshareholders'meeting.TheCompanypreferstoadoptthecashdividendstodistributeprofits.Inordertomaintaintheadaptabilitybetweencapitalexpansionandperformancegrowth,inthepremiseofensuringthefullcashdividenddistributionsandtherationalityofequityscaleandequitystructure,theCompanycanadoptthestockdividendmethodstodistributeprofits.2.Accordingtothe"CompanyLaw"andotherrelevantlawsandtheprovisionsoftheCompany’s"ArticlesofAssociation",followingconditionsshouldbesatisfiedwhentheCompanyimplementscashdividends:(1)theCompany'sannualdistributableprofits(i.e.theafter-taxprofitsaftermakingupforlossesandwithdrawingaccumulationfunds)arepositivevalue,theimplementationofcashdividendswillnotaffecttheCompany'ssubsequentcontinuingoperations;(2)theauditinstitutionissuesthestandardauditreportwithcleanopiniontotheCompany'sannualfinancialreport;(3)theCompanyhasnosignificantinvestmentplansorsignificantcashoutlay(exceptforfund-raisingprojects).Majorinvestmentplansorsignificantcashoutlayreferto:theaccumulatedexpenditurestheCompanyplanstousedforinvestmentsabroad,acquisitionofassets,orpurchaseofequipmentwithinthenext12monthsreachorexceed30%ofthenetassetsauditedinthelatestperiod.3.InthepremiseofmeetingtheconditionsofcashdividendsandensuringtheCompany’snormaloperationandlong-termdevelopment, | April24,2021 | December31,2022 | Implementing |
| impactonfuturefinancingsoastomakesuretheallocationplansmeettheoverallinterestsofallshareholders. | |||
| Completedontime(Y/N) | Y | ||
| Asforthecommitmentoutofthecommitmenttime,explainthespecificreasonsandfurtherplans | Notapplicable | ||
2.ConcerningassetsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
II.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.III.Externalguaranteeoutoftheregulations
□Applicable√NotapplicableNoexternalguaranteeoutoftheregulationsoccurredintheperiod.
IV.Statementonthelatest“modifiedauditreport”byBOD
□Applicable√NotapplicableV.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for“ModifiedAuditReport”issuedbyCPA
□Applicable√Notapplicable
VI.Explanationofthechangesinaccountingpolices,accountingestimatesorcorrectionofsignificantaccountingerrorscomparedwiththefinancialreportofthepreviousyear
√Applicable□Notapplicable(i)Overviewoftheaccountingpolicychange
1.ReasonforchangeOnDecember7,2018,theMinistryofFinancerevisedandissuedtheAccountingStandardsforBusiness
EnterprisesNo.21-Leases(No.35[2018]oftheMinistryofFinance)(hereinafterreferredtoas“newleasestandards”),enterprisesthatarelistedbothathomeandabroad,aswellasenterprisesthatarelistedoverseasanduseInternationalFinancialReportingStandardsorAccountingStandardsforBusinessEnterprisestopreparefinancialstatements,arerequiredtoimplementfromJanuary1,2019;otherenterprisesthatimplementAccountingStandardsforBusinessEnterprisesarerequiredtoimplementfromJanuary1,2021.Inaccordancewiththerequirementsoftheabovedocuments,thecompanyhasmadecorrespondingchangestotheaccountingpolicies.
2.Accountingpoliciesadoptedbeforechange:Beforethisaccountingpolicychange,thecompanyimplementedtheAccountingStandardsforBusinessEnterprises-BasicStandardsissuedbytheMinistryofFinance,variousspecificaccountingstandards,theapplicationguidelinesfortheaccountingstandardsforbusinessenterprises,theinterpretationsoftheaccountingstandardsforbusinessenterprises,andotherrelevantregulations.
3.Accountingpolicyadoptedafterchange:Afterthischange,thecompanywillimplementthenewleasestandards.OtherpartsthathavenotchangedarestillimplementedinaccordancewiththeAccountingStandardsforBusinessEnterprises-BasicStandardsissuedbytheMinistryofFinanceinthepreviousperiod,variousspecificaccountingstandards,theapplicationguidelinesfortheaccountingstandardsforbusinessenterprises,andtheinterpretationsofaccountingstandardsforbusinessenterprisesandotherrelevantregulations.
4.DateofchangeAccordingtotheabove-mentionedrelevantstandardsandnoticesoftheMinistryofFinance,thecompany,asadomesticallylistedenterprise,hasimplementedthenewleasestandardsfromJanuary1,2021.
5.ContentofchangeThemaincontentsoftherevisionofthenewleasestandardsinclude:improvingthedefinitionoflease,addingleaseidentification,splitting,consolidation,etc.;cancelingtheclassificationofoperatingleaseandfinanceleaseforalessee,requiringtorecognizetheright-of-useassetsandleaseliabilitiesofallleases(excludingshort-termleaseandlow-valueassetlease)andaccruedepreciationandinterestexpensesrespectively;improvingthesubsequentmeasurementofthelessee,increasingtheaccountingtreatmentinthecaseofoptionrevaluationandleasechange;enrichingthelessor’sdisclosurecontenttoprovidereportuserswithmoreusefulinformation.(ii)TheimpactofthisaccountingpolicychangeonthecompanyAccordingtotheconvergenceprovisionsofthenewleasestandards,thecompanyhasimplementedthenewleasestandardsfromJanuary1,2021,andadjustedtheamountofretainedearningsandotherrelateditemsinfinancialstatementsatthebeginningoftheyearwhenthenewleasestandardswerefirstimplementedaccordingtothecumulativeimpactofthefirstimplementationofthenewleasestandards,butthecomparableperiodinformationwasnotadjusted.ThisaccountingpolicychangewasmadebythecompanyinaccordancewiththerelevantregulationsandrequirementsissuedbytheMinistryofFinance.Afterthechange,theaccountingpolicycanobjectivelyandfairlyreflectthecompany'sfinancialstatusandoperatingresults,complywithrelevantlawsandregulationsandthecompany'sactualsituation,andwillnothaveasignificantimpactonthecompany'sfinancialcondition,operatingresultsandcashflows,norwillitharmtheinterestsofthecompanyandshareholders.
VII.Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement
√Applicable□Notapplicable
1.ChangesinthescopeofconsolidatedfinancialstatementsduringthereportingperiodNewsubsidiariesduringthereportingperiod:
| SerialNo. | Fullnameofsubsidiary | Abbreviationofsubsidiary | Thereportingperiod | Reasonsforincludedinthescopeofconsolidation |
| 1 | ShanghaiFanyueDiamondCo.,Ltd. | ShanghaiFanyue | 2021 | Newlyestablished |
2.Subsidiariesdecreasedduringthereportingperiod:
| SerialNo. | Fullnameofsubsidiary | Abbreviationofsubsidiary | Thereportingperiod | Reasonsfornotincludedinthescopeofconsolidation |
| 1 | SichuanTellusJewelryTechnologyCo.,Ltd. | SichuanJewelryTechnology | 2021 | Liquidationandcancellation |
| 2 | AnhuiTellusStarlightJewelryInvestmentCo.,Ltd. | TellusStarlight | 2021 | Liquidationandcancellation |
| 3 | AnhuiTellusStarlightJinzunJewelryCo.,Ltd. | TellusStarlightJinzun | 2021 | Liquidationandcancellation |
VIII.Appointmentandnon-reappointment(dismissal)ofCPA
Accountingfirmappointed
| Nameofdomesticaccountingfirm | RSMCertifiedPublicAccountants(SpecialGeneralPartnership) |
| Remunerationfordomesticaccountingfirm(in10thousandYuan) | 70.5 |
| Continuouslifeofauditingservicefordomesticaccountingfirm | 2 |
| NameofdomesticCPA | LiQiaoyi,QinChangming |
| Continuouslifeofauditingservicefordomesticaccountingfirm | LiQiaoyi(2years),QinChangming(3years) |
Re-appointedaccountingfirmsinthisperiod
□Yes√NoAppointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable□NotapplicableTheCompanyappointedRSMCertifiedPublicAccountants(SpecialGeneralPartnership)astheinternalcontrol
auditaccountingfirmoftheCompanyforyearof2021withone-yearterm,theinternalcontrolauditwas205,000yuan.IX.Particularaboutdelistingafterannualreportdisclosed
□Applicable√NotapplicableX.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod
XI.SignificantlawsuitsandarbitrationoftheCompany
√Applicable□NotapplicableFoundmoreintheCompany’s“AuditingReport2021”disclosedonwww.cninfo.com.cnonthesameday,Note11.CommitmentsorcontingencytotheFinancialStatementsXII.Penaltyandrectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.
XIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers
□Applicable√NotapplicableXIV.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
| Relatedparty | Relationship | Typeofrelatedtransaction | Contentofrelatedtransaction | Pricingprinciple | Relatedtransactionprice | Relatedtransactionamount(in10thousandYuan) | Proportioninsimilartransactions | Tradinglimitapproved(in10thousandYuan) | Whetherovertheapprovedlimitedor | Clearingformforrelatedtransaction | Availablesimilarmarketprice | Dateofdisclosure | Indexofdisclosure |
| not(Y/N) | |||||||||||||
| ShenzhenZungFuTellusAutoServiceCo.,Ltd. | Director,supervisorandseniorexecutivesoftheCompanyservesdirectoroftheenterprise | Routinerelatedtransaction | Offeringpropertyrenal | Referencemarketpricing | 525.00 | 525 | 2.70% | 545 | N | Agreedbycontractoragreement | 525.00 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| ShenzhenSDGTellusPropertyManagementCo.,Ltd. | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Offeringpropertyrenal | Referencemarketpricing | 7.59 | 7.59 | 0.04% | 15 | N | Agreedbycontractoragreement | 7.59 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| ShenzhenSDGPettyLoanCo.,Ltd. | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Offeringpropertyrenalandmanagementservices | Referencemarketpricing | 131.07 | 131.07 | 0.67% | 145 | N | Agreedbycontractoragreement | 131.07 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchao |
| Website | |||||||||||||
| ShenzhenSDGServiceCo.,Ltd. | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Offeringpropertyrenalandmanagementservices | Referencemarketpricing | 2.22 | 2.22 | 0.01% | N | Agreedbycontractoragreement | 2.22 | |||
| JewelryParkBranchofShenzhenSDGServiceCo.,Ltd. | Sub-subsidiaryofcontrollingshareholder | Routinerelatedtransaction | Offeringpropertyrenal | Referencemarketpricing | 207.97 | 207.97 | 1.07% | 140 | Y | Agreedbycontractoragreement | 207.97 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| ShenzhenSpecialDevelopmentGroupCo.,Ltd. | Controllingshareholder | Routinerelatedtransaction | Providevehiclemaintenanceandinspectionservices | Referencemarketpricing | 4.56 | 4.56 | 0.00% | Y | Agreedbycontractoragreement | 4.56 | |||
| ShenzhenSDGTellusPropertyManagement | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Providevehiclemaintenance | Referencemarketpricing | 0.19 | 0.19 | 0.00% | Y | Agreedbycontractoragreement | 0.19 |
| Co.,Ltd. | andinspectionservices | ||||||||||||
| ShenzhenSDGEngineeringManagementCo.,Ltd | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Acceptprojectsupervisionservices | Referencemarketpricing | 197.68 | 197.68 | 1.67% | 225 | N | Agreedbycontractoragreement | 197.68 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| JewelryParkBranchofShenzhenSDGServiceCo.,Ltd. | Sub-subsidiaryofcontrollingshareholder | Routinerelatedtransaction | Acceptpropertymanagementservices | Referencemarketpricing | 86.14 | 86.14 | 1.79% | 140 | N | Agreedbycontractoragreement | 86.14 | April16,2021 | Notice(No.:2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| ShenzhenSDGServiceCo.,Ltd. | Subsidiaryofthecontrollingshareholder | Routinerelatedtransaction | Acceptpropertymanagementservices | Referencemarketpricing | 427.03 | 427.03 | 10.84% | 1,086 | N | Agreedbycontractoragreement | 427.03 | August7,2021 | Notice(No.:2021-028)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite |
| ShenzhenSDG | Subsidiary | Routine | Accept | Reference | 1,013.72 | 1,013.72 | 25.74% | 1,100 | N | Agreedby | 1,013.72 | April16, | Notice(No.: |
| TellusPropertyManagementCo.,Ltd. | ofthecontrollingshareholder | relatedtransaction | propertymanagementservices | marketpricing | contractoragreement | 2021 | 2021-016)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsite | ||||||
| Total | -- | -- | 2,603.17 | -- | 3,396 | -- | -- | -- | -- | -- | |||
| Detailofsalesreturnwithmajoramountinvolved | N/A | ||||||||||||
Reporttheactualimplementationofthedailyrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod(ifapplicable)
| Performingnormally | |
| Reasonsformajordifferencesbetweentradingpriceandmarketreferenceprice | Notapplicable |
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod.
3.Mainrelatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod.
4.Contactofrelatedcreditanddebt
√Applicable□NotapplicableWhethertheCompanyhadnon-operatingcontactofrelatedcreditanddebt
□Yes√NoTheCompanyhadnonon-operatingcontactofrelatedcreditanddebtinreportingperiod.
5.Contactwiththerelatedfinancecompanies
□Applicable√Notapplicable
Therearenodeposits,loans,creditsorotherfinancialbusinessbetweentheCompany,therelatedfinancecompaniesandrelatedparties.
6.TransactionsbetweenthefinancecompanycontrolledbytheCompanyandrelatedparties
□Applicable√NotapplicableTherearenodeposits,loans,creditsorotherfinancialbusinessbetweenthefinancecompaniescontrolledbytheCompanyandrelatedparties
7.Othermajorrelatedtransactions
□Applicable√NotapplicableNoothermajorrelatedtransactioninPeriod
XV.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√NotapplicableNotrusteeshipfortheCompanyinreportingperiod
(2)Contract
□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod
(3)Leasing
□Applicable√NotapplicableNoleasingfortheCompanyinreportingperiod
2.Majorguarantees
√Applicable□Notapplicable
In10thousandYuan
| ParticularsabouttheexternalguaranteeoftheCompanyanditssubsidiary(Barringtheguaranteeforsubsidiaries) | ||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifany) | Counterguarantee(if | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| any) | |||||||||||
| ShenzhenZungFuTellusAutoServiceCo.,Ltd. | September30,2014 | 3,500 | April17,2007 | 3,500 | Pledge | Totheexpiredateofjointventurecontract | N | Y | N | Y | |
| Totalapprovingexternalguaranteeinreportperiod(A1) | 0 | Totalactualoccurredexternalguaranteeinreportperiod(A2) | 3,500 | ||||||||
| Totalapprovedexternalguaranteeattheendofreportperiod(A3) | 3,500 | Totalactualbalanceofexternalguaranteeattheendofreportperiod(A4) | 3,500 | ||||||||
| GuaranteeoftheCompanytosubsidiaries | |||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifany) | Counterguarantee(ifany) | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) | |
| Guaranteeofthesubsidiariestosubsidiaries | |||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifany) | Counterguarantee(ifany) | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) | |
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(C1) | 0 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(C2) | 0 | ||||||||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3) | 0 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4) | 0 | ||||||||
| TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee) | |||||||||||
| Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1) | 0 | Totalamountofactualoccurredguaranteeinreportperiod | 3,500 | ||||||||
| (A2+B2+C2) | |||
| Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3) | 3,500 | Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4) | 3,500 |
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4) | 2.40% | ||
| Including: | |||
| Amountofguaranteeforshareholders,actualcontrolleranditsrelatedparties(D) | 0 | ||
| Thedebtsguaranteeamountprovidedfortheguaranteedpartieswhoseassets-liabilityratioexceed70%directlyorindirectly(E) | 0 | ||
| ProportionoftotalamountofguaranteeinnetassetsoftheCompanyexceed50%(F) | 0 | ||
| Totalamountoftheaforesaidthreeguarantees(D+E+F) | 0 | ||
| Foranunexpiredguaranteecontract,explanationontheguaranteeliabilityhasbeenincurredduringthereportingperiodorthereisevidenceofthepossibilityofjointandseveralliabilityforpayment(ifapplicable) | N/A | ||
| Explanationsonexternalguaranteeagainstregulatedprocedures(ifapplicable) | N/A | ||
Explanationonguaranteewithcompositeway
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
√Applicable□NotapplicableTrustfinancinginthereportingperiod
In10thousandYuan
| Type | Capitalsources | Amountoccurred | Outstandingbalance | Overdueamount | Amountwithimpairmentaccrualfortheoverduefinancialproductswhichhasnotbeenrecovered |
| Bankfinancingproduct | Ownfunds | 155,000 | 41,100 | 0 | 0 |
| Total | 155,000 | 41,100 | 0 | 0 | |
Detailsofthesinglemajoramount,orhigh-risktrustinvestmentwithlowsecurity,poorfluidity
□Applicable√NotapplicableEntrustfinancialexpectedtobeunabletorecovertheprincipalorimpairmentmightbeoccurred
□Applicable√Notapplicable
(2)Entrustedloans
□Applicable√NotapplicableTheCompanyhadnoentrustedloansinthereportingperiod.
4.Othersignificantcontracts
□Applicable√NotapplicableNoothersignificantcontractsfortheCompanyinreportingperiod
XVI.Explanationonothersignificantevents
□Applicable√NotapplicableThecompanyhadnoothersignificantmattersthatneedsdescriptioninthereportingperiod.
XVII.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
SectionVII.ChangesinSharesandParticularsaboutShareholder
I.ChangesinShareCapital
1.ChangesinShareCapital
InShare
| Beforechange | Increase/decreaseinthistime(+,-) | Afterchange | |||||||
| Amount | Ratio | Newsharesissued | Bonusshare | Capitalizationofpublicreserve | Other | Subtotal | Amount | Ratio | |
| I.Restrictedshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.Stateholding | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.State-ownedcorporationshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Otherdomesticshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Including:domesticlegalperson’sshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Domesticnaturalperson’sshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Foreigner’sshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Including:foreigncorporationshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreignnaturalperson’sshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II.Un-restrictedshares | 431,058,320 | 100.00% | 0 | 0 | 0 | 0 | 0 | 431,058,320 | 100.00% |
| 1.RMBordinaryshares | 392,778,320 | 91.12% | 0 | 0 | 0 | 0 | 0 | 392,778,320 | 91.12% |
| 2.Domesticallylistedforeignshares | 38,280,000 | 8.88% | 0 | 0 | 0 | 0 | 0 | 38,280,000 | 8.88% |
| 2.Foreignshareslistedaboard | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.Totalshares | 431,058,3 | 100.00 | 0 | 0 | 0 | 0 | 0 | 431,058,320 | 100.00% |
| 20 | % |
Reasonsforsharechanged
□Applicable√Notapplicable
2.Changesofrestrictedshares
□Applicable√Notapplicable
II.Securitiesissuanceandlisting
1.Securityoffering(withoutpreferredstock)inReportingPeriod
□Applicable√Notapplicable
2.Changesoftotalsharesandshareholdersstructureaswellasexplanationonchangesofassetsandliabilitystructure
□Applicable√Notapplicable
3.Currentinternalstaffshares
□Applicable√Notapplicable
III.ParticularsaboutshareholderandactualcontrolleroftheCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShare
| Totalcommonstockshareholdersinreportingperiod-end | 46,064 | Totalcommonstockshareholdersatendoflastmonthbeforeannualreportdisclosed | 46,354 | Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)(foundinnote8) | 0 | Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed(ifapplicable)(foundinnote8) | 0 | ||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | |||||||||||||
| Fullnameof | Natureof | Proport | Amountof | Changes | Amoun | Amountof | Sharespledged,markedor | ||||||
| Shareholders | shareholder | ionofsharesheld | sharesheldattheperiod-end | inreportperiod | tofrestrictedsharesheld | un-restrictedsharesheld | frozen | |
| Stateofshare | Amount | |||||||
| ShenzhenSpecialDevelopmentGroupCo.,Ltd. | State-ownedcorporation | 49.09% | 211,591,621 | 0 | 0 | 211,591,621 | 0 | |
| ShenzhenCapitalFortuneJewelryIndustryInvestmentEnterprise(LP) | Domesticnonstate-ownedcorporate | 12.89% | 55,544,437 | -8,110,935 | 0 | 55,544,437 | 0 | |
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | Foreigncorporation | 0.43% | 1,856,546 | 120,455 | 0 | 1,856,546 | 0 | |
| CCB-GFCSIAllIndexAutoindex-basedOriginatedSecuritiesInvestmentFund | Other | 0.22% | 948,018 | 5,780 | 0 | 948,018 | 0 | |
| YangJianfeng | Domesticnatureperson | 0.20% | 863,235 | 359,035 | 0 | 863,235 | 0 | |
| ShiXiumin | Domesticnatureperson | 0.18% | 758,735 | 758,735 | 0 | 758,735 | 0 | |
| XuFeirong | Domesticnatureperson | 0.14% | 591,578 | 591,578 | 0 | 591,578 | 0 | |
| XiaoQiaoyue | Domesticnatureperson | 0.13% | 578,648 | 202,288 | 0 | 578,648 | 0 | |
| ShanghaiYingshuiInvestmentManagementCo.,Ltd.-Yingshui | Other | 0.13% | 566,487 | 0 | 0 | 566,487 | 0 | |
| DongfengNo.3-PrivateEquityInvestmentFund | ||||||||
| LiGuoyong | Domesticnatureperson | 0.13% | 517,500 | 261,617 | 0 | 517,500 | 0 | |
| Strategyinvestorsorgeneralcorporationcomestop10shareholdersduetorightsissue(ifapplicable)(foundinnote3) | N/A | |||||||
| Explanationonassociatedrelationshipamongthetoptenshareholdersorconsistentaction | Amongthetoptenshareholders,thereexistsnoassociatedrelationshipbetweenthestate-ownedlegalperson’sshareholdersSDG,Ltdandothershareholders,andtheydonotbelongtothepersonsactinginconcertregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.Fortheothershareholdersofcirculationshare,theCompanyisunknownwhethertheybelongtothepersonsactinginconcert. | |||||||
| Descriptionoftheaboveshareholdersinrelationtodelegate/entrustedvotingrightsandabstentionfromvotingrights. | Notapplicable | |||||||
| Specialnoteontherepurchaseaccountamongthetop10shareholders(ifapplicable)(foundinnote10) | N/A | |||||||
| Particularabouttoptenshareholderswithun-restrictsharesheld | ||||||||
| Shareholders’name | Amountofun-restrictsharesheldatPeriod-end | Typeofshares | ||||||
| Type | Amount | |||||||
| ShenzhenSpecialDevelopmentGroupCo.,Ltd. | 211,591,621 | RMBordinaryshares | 211,591,621 | |||||
| ShenzhenCapitalFortuneJewelryIndustryInvestmentEnterprise(LP) | 55,544,437 | RMBordinaryshares | 55,544,437 | |||||
| GUOTAIJUNANSECURITIES(HONGKONG)LIMITED | 1,856,546 | Domesticallylistedforeignshares | 1,856,546 | |||||
| CCB-GFCSIAllIndexAutoindex-basedOriginated | 948,018 | RMBordinary | 948,018 | |||||
| SecuritiesInvestmentFund | shares | ||
| YangJianfeng | 863,235 | RMBordinaryshares | 863,235 |
| ShiXiumin | 758,735 | RMBordinaryshares | 758,735 |
| XuFeirong | 591,578 | RMBordinaryshares | 591,578 |
| XiaoQiaoyue | 578,648 | RMBordinaryshares | 578,648 |
| ShanghaiYingshuiInvestmentManagementCo.,Ltd.-YingshuiDongfengNo.3-PrivateEquityInvestmentFund | 566,487 | RMBordinaryshares | 566,487 |
| LiGuoyong | 517,500 | RMBordinaryshares | 517,500 |
| Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders | Amongthetoptenshareholders,thereexistsnoassociatedrelationshipbetweenthestate-ownedlegalperson’sshareholdersSDG,Ltdandothershareholders,andtheydonotbelongtothepersonsactinginconcertregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.Fortheothershareholdersofcirculationshare,theCompanyisunknownwhethertheybelongtothepersonsactinginconcert. | ||
| Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonshareholderswithun-restrictsharesheld(ifapplicable)(foundinnote4) | TheshareholderYangJianfengholds657,935sharesofthecompany'sstockthroughacredittransactionguaranteesecuritiesaccount,and205,300sharesofthecompany'sstockthroughanordinarysecuritiesaccount,foratotalof863,235shares.ShareholderXuFeirongholds576,478sharesofthecompany'sstockthroughacredittransactionguaranteesecuritiesaccount,and15,100sharesofthecompany'sstockthroughanordinarysecuritiesaccount,foratotalof591,578shares.ShareholderXiaoQiaoyueholds449,648sharesofthecompany'sstockthroughacredittransactionguaranteesecuritiesaccount,and129,000sharesofthecompany'sstockthroughanordinarysecuritiesaccount,foratotalof578,648shares.TheshareholderShanghaiYingshuiInvestmentManagementCo.,Ltd.-YingshuiDongfengNo.3-PrivateEquityInvestmentFundholds566,487sharesofthecompany'sstockthroughacredittransactionguaranteesecuritiesaccount,and0sharesthroughanordinarysecuritiesaccount,foratotalof566,487shares.TheshareholderLiGuoyongholds493,255sharesofthecompany'sstockthroughacredittransactionguaranteesecuritiesaccount,and24,245sharesofthecompany'sstockthroughanordinarysecuritiesaccount,foratotalof517,500shares. | ||
Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod
□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Natureofcontrollingshareholders:localstate-ownedholdingTypeofcontrollingshareholders:legalperson
| Majorityshareholder | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| ShenzhenSpecialDevelopmentGroupCo.,Ltd. | ZhangJunlin | August1,1981 | 91440300192194195C | Investmentinindustry(specificitemshouldbedeclaration);investmentintourismindustry;developmentandoperationoftherealestate;domesticbusiness,materialsupplyandmarketingindustry(excludingmonopolizedcommodityandcommodityunderspecialgovernmentcontrol);economicinformation(excludingrestrictedprojects);import&exportbusiness |
| EquityoflistedCompanyinandoutofChinacontrolandholdbythemajorityshareholderinthePeriod | ExceptthesharesoftheCompanyheldbySDG:1.SDGdirectlyholds37.07%(313,086,853shares)ofShenzhenSDGInformationCo.,Ltd.(Stockabbreviation“SDGI”,stockcode000070),and1.17%(9,903,504shares)heldthroughHanguoSanheCo.,Ltd.2.SDGholds21.35%(18,3818,073shares)ofShenzhenMicrogateTechnologyCo.,Ltd.(Stockabbreviation“MicrogateTechnology”,stockcode300319)throughShenzhenCapitalFortuneElectronicInformationInvestmentEnterprise(limitedpartnership);directlyholds8.36%(72,000,000shares)ofMicrogateTechnology.3.SDGdirectlyholds47.78%(62,107,500shares)ofShenzhenSDGServiceCo.,Ltd.(Stockabbreviation“SDGService”,stockcode300917),andholds0.98%(1,267,500shares)throughSDGInvestment.4.SDGdirectlyholds0.77%(4,707,509shares)ofSichuanJinluGroupCo.,Ltd.(Stockabbreviation“xjinlu”,stockcode000510) | |||
Changesofcontrollingshareholdersinreportingperiod
□Applicable√NotapplicableTheCompanyhadnochangesofcontrollingshareholdersinreportingperiod
3.ActualcontrolleroftheCompanyandpersonsactinginconcertNatureofactualcontroller:localstate-ownedassetsmanagementTypeofactualcontroller:legalperson
| Actualcontrollingshareholders | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| ShenzhenMunicipalPeople’sGovernmentState-ownedAssetsSupervisionandAdministrationCommission | WangYongjian | July30,2004 | K3172806-7 | PerformsthedutiesofcapitalcontributorsonbehalfoftheState,andsupervisesandmanagesthestate-ownedassetsauthorizedforsupervisioninaccordancewiththelaws. |
| Equityofdomestic/oversealistedCompanycontrolbyactualcontrollerinreportperiod | Notapplicable | |||
Changesofactualcontrollerinreportingperiod
□Applicable√NotapplicableNochangesofactualcontrollersfortheCompanyinreportingperiod.PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Thetotalnumberofsharespledgedbycontrollingshareholdersorthefirstmajorityshareholderanditspersonsactinginconcertaccountsfor80%ofthesharesheldbythem
□Applicable√Notapplicable
5.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
√Applicable□Notapplicable
| Corporateshareholders | Legalrep./personinchargeofunit | Dateoffoundation | Registercapital | Mainbusinessormanagementactivity |
| ShenzhenCapitalFortuneJewelryIndustryInvestmentEnterprise(LP) | ZhaoHui | April18,2014 | 620millionYuan | Equityinvestment |
6.Limitationandreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Applicable√Notapplicable
IV.Thespecificimplementationofsharesbuy-backduringthereportingperiodImplementationprogressofsharesbuy-back
□Applicable√NotapplicableImplementationprogressofthereductionofrepurchasessharesbycentralizedbidding
□Applicable√Notapplicable
SectionVIII.PreferredStock
□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.
SectionIX.Bonds
□Applicable√Notapplicable
SectionX.FinancialReport
I.Auditreport
| Typeofauditopinion | Standardunqualifiedopinion |
| Signingdateofauditreport | April7,2022 |
| Nameofauditinstitute | RSMCertifiedPublicAccountants(SpecialGeneralPartnership) |
| NumberofAuditreport | RSMShenZi[2022]No.518Z0182 |
| NameofCPA | LiQiaoyi,QinChangming |
Auditor’sReport
TotheShareholdersofShenzhenTellusHoldingCo.,Ltd.:
I.AuditingopinionsWehaveauditedthefinancialstatementunderthenameofShenzhenTellusHoldingCo.,Ltd.(hereinafterreferredtoasTellusGroup),includingtheconsolidatedandparentCompany’sbalancesheetof31December2021andprofitstatement,andcashflowstatement,andstatementonchangesofshareholders’equityfortheyearended,andnotestothefinancialstatementsfortheyearended.Inouropinion,theattachedfinancialstatementsareinallmaterialrespectsinaccordancewiththeprovisionofAccountingStandardsforBusinessEnterprises,andtheyfairlypresentthefinancialstatusoftheCompanyandofitsparentcompanyasof31December2021anditsoperationresultsandcashflowsfortheyearended.II.BasisofopinionWeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsofChina.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”sectionoftheauditor’sreport.WeareindependentoftheCompanyinaccordancewiththeCertifiedPublicAccountantsofChina’sCodeofEthicsforProfessionalAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyauditmattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
(i)Revenuerecognition
1.MatterdescriptionFoundmoreinthe26inNoteIIIandthe38inNoteVcarriedinfinancialstatementOperatingrevenueofTellusGroupismainlyderivedfromautomobilesales,automotiverepair&testing,jewellerysales&service,realestateleasingandservices.In2021,TellusGroupachievedoperatingrevenueof508,520,026.18Yuanwith19.82%downfromayearearlier.SincetheoperatingrevenueisoneofthekeyperformanceindicatorsofTellusGroup,theremaybeaninherentriskthatthemanagementofTellusGroup(hereinafterreferredtoasmanagement)mayuseinappropriaterevenuerecognitiontoachievespecificgoalsorexpectations.Accordingly,wehaveidentifiedrevenuerecognitionasakeyauditmatter.
2.AuditresponseTherelevantprocedureswehaveimplementedforrevenuerecognitionincluding:
(1)Understandthekeyinternalcontrolsrelatingtorevenuerecognition,evaluationthedesignofthesecontrols,determinewhethertheyarebeingimplementedandtesttheoperatingeffectivenessoftherelevantinternalcontrols;
(2)Checkmajormerchandisingcontracts,realestateleasingcontractsandevaluatewhethertherevenuerecognitionpolicyisincompliancewiththeprovisionofAccountingStandardsforBusinessEnterprise;
(3)Implementinganalyticalproceduresforoperatingrevenueandgrossmarginonamonthlybasisoronproducts,identifywhethertherearesignificantorunusualfluctuationsandfindoutthecausesofsuchfluctuations;
(4)Checksupportingdocumentsrelatedtorevenuerecognitionbysampling,includingmerchandisesalescontractorrealestatecontract,invoice,merchandisesalesorder,deliveryreceiptsandcustomersignreceiptetc.;
(5)Combinedwiththeaccountreceivableletter,confirmthecurrentsalesvolumetothemaincustomersbysampling;
(6)Asfortherevenuerecognizedbeforeandafterthebalancesheetdate,checkthesupportingdocumentssuchasinvoices,salesorders,deliveryreceiptsandcustomersignreceiptinasamplingmanner,andevaluatewhethertheoperatingrevenueisrecognizedinanappropriateperiod;
(7)CheckwhethertherevenueisproperlyresentedinthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises.(ii)Recognitionofearningsonequitytransfer
1.MatterdescriptionFoundmoreinthe16inNoteIIIandthe44inNoteVcarriedinfinancialstatementTellusGroupachievedanincomefrominvestmentof93,780,306.77yuanfortheyearof2021,mainlygeneratedbytheearningsfromdisposingthelong-termequityinvestment.OnAugust26,2021,thewholly-ownedsubsidiaryofTellusGroup-ShenzhenAutomotiveIndustryTradingCo.,Ltd(hereinafterreferredtoasAutoIndustryTradingCompany)transferredthe25%equityofShenzhenDongfengMotorCo.,Ltd.(hereinafter
referredtoasDongfengCompany)bywayofpubliclistingonShenzhenUnitedPropertyandEquityExchange.Theequitytransferearningsarerecognizedas66,171,136.41yuan,accountingfor37.57%ofthetotalprofitforwholeyearof2021.AstheabovementionedequitytransferhasasignificantimpactontheoperationperformanceoftheTellusGroupforyearof2021,weconsideredthattherecognitionofearningsonequitytransferasakeyauditmatter.
2.AuditresponseRelevantproceduresimplementedfortherecognitionofearningsonequitytransfermainlyincludes:
(1)Understand,evaluateandtestingthekeyinternalcontrolswithequitytransferconcerned;
(2)ObtainresolutionoftheBoardMeetingswithequitytransfertransactionconcerned,andevaluatewhetherthetransactionhasbeenauthorizedandapprovedinanappropriateway;
(3)Evaluatetheobjectivity,independenceandprofessionalcompetenceofthefairvalue(thebasisfortransactionpricing)appraisalinstitutionthroughinquires;
(4)Checkinguponequitytransferagreement,certificateofthereceiptofequitytransferpayment,equitysettlementdocumentsandpropertytransferprocedures,etc.,anddeterminingwhetherthetimingofinvestmentincomefromtransferoftheequityofShenzhenDongfengCompanyisreasonable;
(5)Re-calculatetheinvestmentearningsresultingfromequitytransferandreconciledwiththemanagementincalculation;
(6)ReviewingwhetherthedisclosurewithequitytransfertransactionconcernedcarryinfinancialstatementsarecompliancewiththerequirementsofAccountingStandardsforBusinessEnterprises.IV.OtherinformationThemanagementofTellusisresponsibleforotherinformationwhichincludestheinformationcoveredintheCompany’s2020annualreportexcludingthefinancialstatementandourauditreport.Ourauditopinionsonthefinancialstatementsdonotcoverotherinformation,andwedonotissueanyformofauthenticationconclusionsonotherinformation.Incombinationwithourauditofthefinancialstatements,itisourresponsibilitytoreadotherinformationand,indoingso,toconsiderwhetherthereismaterialinconsistencyormaterialmisstatementbetweentheotherinformationandthefinancialstatementsorwhatwelearnedinthecourseofouraudit.Basedontheworkwehaveperformed,ifwedeterminethatotherinformationismateriallymisstated,weshouldreportthatfact.Wehavenomatterstoreportinthisregard.V.ResponsibilitiesofmanagementandthosechargedwithgovernanceforthefinancialstatementsThemanagementisresponsibleforthepreparationofthefinancialstatementsinaccordancewiththeAccountingStandardsforEnterprisetosecureafairpresentation,andforthedesign,establishmentandmaintenanceoftheinternalcontrolnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern(ifapplicable)andusingthegoingconcernassumptionunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithTellusGroup(hereinafterreferredtoasthegovernance)areresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.ResponsibilitiesoftheauditorforthefinancialstatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditreportthatincludesourauditopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.AspartofanauditinaccordancewiththeCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforauditopinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernassumptionand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbytheCAStodrawusers’attentioninauditreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyauditopinion.Ourconclusionsarebasedontheinformationobtaineduptothedateofauditreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforauditopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethegovernancewithastatementofourcompliancewiththeethicalrequirementsrelatingtoourindependenceandcommunicatewiththegovernanceonallrelationshipsandothermattersthatmayreasonablybeconsideredtoaffectourindependence,aswellustherelevantprecautions(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersintheauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedintheauditor’sreportbecauseoftheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
II.FinancialStatement
PreparedbyShenzhenTellusHoldingCo.,Ltd.StatementinFinancialNotesarecarriedinRMB/CNY
1.ConsolidatedBalanceSheet
PreparedbyShenzhenTellusHoldingCo.,Ltd.
InRMB
| Item | December31,2021 | December31,2020 |
| Currentassets: | ||
| Monetaryfunds | 240,582,057.16 | 237,625,698.93 |
| Settlementprovisions | ||
| Capitallent | ||
| Tradingfinancialassets | 412,712,843.84 | 314,013,869.86 |
| Derivativefinancialassets | ||
| Notereceivable |
| Accountreceivable | 18,094,059.92 | 19,828,510.36 |
| Receivablefinancing | ||
| Accountspaidinadvance | 16,532,227.85 | 9,847,749.74 |
| Insurancereceivable | ||
| Reinsurancereceivables | ||
| Contractreserveofreinsurancereceivable | ||
| Otheraccountreceivable | 5,072,970.77 | 29,269,790.83 |
| Including:Interestreceivable | ||
| Dividendreceivable | 547,184.35 | 24,647,732.42 |
| Buyingbackthesaleoffinancialassets | ||
| Inventories | 25,434,925.04 | 22,079,679.93 |
| Contractualassets | ||
| Assetsheldforsale | 530,520.33 | |
| Non-currentassetduewithinoneyear | ||
| Othercurrentassets | 8,596,585.57 | 6,000,566.69 |
| Totalcurrentassets | 727,556,190.48 | 638,665,866.34 |
| Non-currentassets: | ||
| Loansandpaymentsonbehalf | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termaccountreceivable | ||
| Long-termequityinvestment | 88,310,867.47 | 123,640,955.57 |
| Investmentinotherequityinstrument | 10,176,617.20 | 10,176,617.20 |
| Othernon-currentfinancialassets | ||
| Investmentrealestate | 551,383,294.54 | 568,246,616.13 |
| Fixedassets | 109,438,198.23 | 119,136,917.91 |
| Constructioninprogress | 210,197,546.72 | 101,740,485.48 |
| Productivebiologicalasset | ||
| Oilandgasasset | ||
| Right-of-useassets | 7,336,915.83 |
| Intangibleassets | 49,589,498.28 | 51,627,673.21 |
| ExpenseonResearchandDevelopment | ||
| Goodwill | ||
| Long-termexpensestobeapportioned | 28,682,636.66 | 30,714,879.22 |
| Deferredincometaxasset | 8,499,551.03 | 8,498,822.10 |
| Othernon-currentasset | 68,473,888.99 | 55,993,467.99 |
| Totalnon-currentasset | 1,132,089,014.95 | 1,069,776,434.81 |
| Totalassets | 1,859,645,205.43 | 1,708,442,301.15 |
| Currentliabilities: | ||
| Short-termloans | ||
| Loanfromcentralbank | ||
| Capitalborrowed | ||
| Tradingfinancialliability | ||
| Derivativefinancialliability | ||
| Notepayable | ||
| Accountpayable | 67,407,763.03 | 76,583,166.53 |
| Accountsreceivedinadvance | 1,827,827.28 | 2,403,580.47 |
| Contractualliability | 21,059,311.18 | 18,988,628.13 |
| Sellingfinancialassetofrepurchase | ||
| Absorbingdepositandinterbankdeposit | ||
| Securitytradingofagency | ||
| Securitysalesofagency | ||
| Wagepayable | 38,893,597.75 | 28,365,685.21 |
| Taxespayable | 48,522,100.45 | 21,062,154.32 |
| Otheraccountpayable | 112,617,963.65 | 158,663,974.62 |
| Including:Interestpayable | ||
| Dividendpayable | 46,295.65 | |
| Commissionchargeandcommissionpayable | ||
| Reinsurancepayable | ||
| Liabilityheldforsale |
| Non-currentliabilitiesduewithinoneyear | 3,021,452.25 | |
| Othercurrentliabilities | 2,367,994.70 | 2,237,573.19 |
| Totalcurrentliabilities | 295,718,010.29 | 308,304,762.47 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termloans | 86,875,874.39 | 11,171,759.33 |
| Bondspayable | ||
| Including:Preferredstock | ||
| Perpetualcapitalsecurities | ||
| Leaseliability | 4,474,543.09 | |
| Long-termaccountpayable | 3,920,160.36 | 3,920,160.36 |
| Long-termwagespayable | ||
| Accrualliability | 268,414.80 | 268,414.80 |
| Deferredincome | 10,235,331.21 | 131,102.38 |
| Deferredincometaxliabilities | 963,045.49 | |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 106,737,369.34 | 15,491,436.87 |
| Totalliabilities | 402,455,379.63 | 323,796,199.34 |
| Owner’sequity: | ||
| Sharecapital | 431,058,320.00 | 431,058,320.00 |
| Otherequityinstrument | ||
| Including:Preferredstock | ||
| Perpetualcapitalsecurities | ||
| Capitalpublicreserve | 431,449,554.51 | 431,449,554.51 |
| Less:Inventoryshares | ||
| Othercomprehensiveincome | 26,422.00 | 26,422.00 |
| Reasonablereserve | ||
| Surpluspublicreserve | 26,546,480.09 | 23,848,485.62 |
| Provisionofgeneralrisk | ||
| Retainedprofit | 543,843,496.85 | 424,141,893.34 |
| Totalowner’sequityattributabletoparentcompany | 1,432,924,273.45 | 1,310,524,675.47 |
| Minorityinterests | 24,265,552.35 | 74,121,426.34 |
| Totalowner’sequity | 1,457,189,825.80 | 1,384,646,101.81 |
| Totalliabilitiesandowner’sequity | 1,859,645,205.43 | 1,708,442,301.15 |
LegalRepresentative:FuChunlongPersoninchargeofAccountingWorks:LouHongPersoninchargeofAccountingInstitution:LouHong
2.BalanceSheetofParentCompany
InRMB
| Item | December31,2021 | December31,2020 |
| Currentassets: | ||
| Monetaryfunds | 96,860,811.12 | 71,772,303.28 |
| Tradingfinancialassets | 346,485,780.83 | 118,484,941.09 |
| Derivativefinancialassets | ||
| Notereceivable | ||
| Accountreceivable | 119,014.41 | 249,428.20 |
| Receivablefinancing | ||
| Accountspaidinadvance | 180,505.50 | |
| Otheraccountreceivable | 90,401,592.58 | 126,970,097.13 |
| Including:Interestreceivable | ||
| Dividendreceivable | 547,184.35 | 547,184.35 |
| Inventories | ||
| Contractualassets | ||
| Assetsheldforsale | ||
| Non-currentassetsmaturingwithinoneyear | ||
| Othercurrentassets | ||
| Totalcurrentassets | 534,047,704.44 | 317,476,769.70 |
| Non-currentassets: | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termreceivables |
| Long-termequityinvestments | 781,100,340.20 | 876,760,784.88 |
| Investmentinotherequityinstrument | 10,176,617.20 | 10,176,617.20 |
| Othernon-currentfinancialassets | ||
| Investmentrealestate | 29,425,213.32 | 31,971,205.42 |
| Fixedassets | 17,792,917.53 | 19,082,604.22 |
| Constructioninprogress | 210,072,702.40 | 100,252,309.72 |
| Productivebiologicalassets | ||
| Oilandnaturalgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 48,214,014.93 | 50,135,951.98 |
| Researchanddevelopmentcosts | ||
| Goodwill | ||
| Long-termdeferredexpenses | 8,853,627.44 | 8,786,280.69 |
| Deferredincometaxassets | 3,398,437.68 | 3,397,708.75 |
| Othernon-currentassets | 32,375,515.49 | 27,427,939.18 |
| Totalnon-currentassets | 1,141,409,386.19 | 1,127,991,402.04 |
| Totalassets | 1,675,457,090.63 | 1,445,468,171.74 |
| Currentliabilities: | ||
| Short-termborrowings | ||
| Tradingfinancialliability | ||
| Derivativefinancialliability | ||
| Notespayable | ||
| Accountpayable | 344,098.18 | 267,841.07 |
| Accountsreceivedinadvance | 60,656.39 | 682,934.41 |
| Contractualliability | ||
| Wagepayable | 25,851,294.89 | 15,784,381.93 |
| Taxespayable | 1,873,430.60 | 1,123,476.72 |
| Otheraccountspayable | 471,549,476.87 | 345,894,297.23 |
| Including:Interestpayable | ||
| Dividendpayable | ||
| Liabilityheldforsale | ||
| Non-currentliabilitiesduewithinoneyear |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 499,678,956.93 | 363,752,931.36 |
| Non-currentliabilities: | ||
| Long-termloans | 86,875,874.39 | 11,171,759.33 |
| Bondspayable | ||
| Including:Preferredstock | ||
| Perpetualcapitalsecurities | ||
| Leaseliability | ||
| Long-termaccountpayable | ||
| Longtermemployeecompensationpayable | ||
| Accruedliabilities | ||
| Deferredincome | ||
| Deferredincometaxliabilities | ||
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 86,875,874.39 | 11,171,759.33 |
| Totalliabilities | 586,554,831.32 | 374,924,690.69 |
| Owners’equity: | ||
| Sharecapital | 431,058,320.00 | 431,058,320.00 |
| Otherequityinstrument | ||
| Including:Preferredstock | ||
| Perpetualcapitalsecurities | ||
| Capitalpublicreserve | 428,256,131.23 | 428,256,131.23 |
| Less:Inventoryshares | ||
| Othercomprehensiveincome | ||
| Specialreserve | ||
| Surplusreserve | 26,546,480.09 | 23,848,485.62 |
| Retainedprofit | 203,041,327.99 | 187,380,544.20 |
| Totalowner’sequity | 1,088,902,259.31 | 1,070,543,481.05 |
| Totalliabilitiesandowner’sequity | 1,675,457,090.63 | 1,445,468,171.74 |
3.ConsolidatedProfitStatement
InRMB
| Item | 2021 | 2020 |
| I.Totaloperatingincome | 508,520,026.18 | 424,419,203.34 |
| Including:Operatingincome | 508,520,026.18 | 424,419,203.34 |
| Interestincome | ||
| Insurancegained | ||
| Commissionchargeandcommissionincome | ||
| II.Totaloperatingcost | 429,932,421.97 | 377,759,171.82 |
| Including:Operatingcost | 352,929,715.81 | 319,261,201.59 |
| Interestexpense | ||
| Commissionchargeandcommissionexpense | ||
| Cashsurrendervalue | ||
| Netamountofexpenseofcompensation | ||
| Netamountofwithdrawalofinsurancecontractreserve | ||
| Bonusexpenseofguaranteeslip | ||
| Reinsuranceexpense | ||
| Taxandextras | 6,944,096.18 | 4,104,477.41 |
| Salesexpense | 27,178,175.03 | 17,715,132.43 |
| Administrativeexpense | 47,151,316.69 | 39,984,244.07 |
| R&Dexpense | ||
| Financialexpense | -4,270,881.74 | -3,305,883.68 |
| Including:Interestexpenses | 2,253,915.94 | 1,042,694.54 |
| Interestincome | 6,538,484.64 | 4,473,218.76 |
| Add:Otherincome | 2,970,055.35 | 1,566,918.68 |
| Investmentincome(Lossislistedwith“-”) | 93,780,306.77 | 23,458,405.59 |
| Including:Investmentincomeonaffiliatedcompanyandjointventure | 17,874,805.32 | 14,962,411.52 |
| Theterminationofincomerecognitionforfinancialassets |
| measuredbyamortizedcost | ||
| Exchangeincome(Lossislistedwith“-”) | ||
| Netexposurehedgingincome(Lossislistedwith“-”) | ||
| Incomefromchangeoffairvalue(Lossislistedwith“-”) | 663,932.88 | 316,475.19 |
| Lossofcreditimpairment(Lossislistedwith“-”) | 38,129.28 | 1,528,748.01 |
| Lossesofdevaluationofasset(Lossislistedwith“-”) | -812,607.69 | -23,818.95 |
| Incomefromassetsdisposal(Lossislistedwith“-”) | 158,228.49 | |
| III.Operatingprofit(Lossislistedwith“-”) | 175,385,649.29 | 73,506,760.04 |
| Add:Non-operatingincome | 768,055.65 | 3,289,158.12 |
| Less:Non-operatingexpense | 37,503.15 | 92,751.70 |
| IV.Totalprofit(Lossislistedwith“-”) | 176,116,201.79 | 76,703,166.46 |
| Less:Incometaxexpense | 44,063,670.71 | 16,397,936.55 |
| V.Netprofit(Netlossislistedwith“-”) | 132,052,531.08 | 60,305,229.91 |
| (i)Classifybybusinesscontinuity | ||
| 1.continuousoperatingnetprofit(netlosslistedwith‘-”) | 132,052,531.08 | 60,305,229.91 |
| 2.terminationofnetprofit(netlosslistedwith‘-”) | ||
| (ii)Classifybyownership | ||
| 1.Netprofitattributabletoowner’sofparentcompany | 131,020,764.38 | 57,663,828.89 |
| 2.Minorityshareholders’gainsandlosses | 1,031,766.70 | 2,641,401.02 |
| VI.Netafter-taxofothercomprehensiveincome | ||
| Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany | ||
| (I)Othercomprehensiveincomeitemswhichwillnotbereclassified |
| subsequentlytoprofitofloss | ||
| 1.Changesofthedefinedbenefitplansthatre-measured | ||
| 2.Othercomprehensiveincomeunderequitymethodthatcannotbetransfertogain/loss | ||
| 3.Changeoffairvalueofinvestmentinotherequityinstrument | ||
| 4.Fairvaluechangeofenterprise'screditrisk | ||
| 5.Other | ||
| (ii)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss | ||
| 1.Othercomprehensiveincomeunderequitymethodthatcantransfertogain/loss | ||
| 2.Changeoffairvalueofotherdebtinvestment | ||
| 3.Amountoffinancialassetsre-classifytoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionforotherdebtinvestment | ||
| 5.Cashflowhedgingreserve | ||
| 6.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements | ||
| 7.Other | ||
| Netafter-taxofothercomprehensiveincomeattributabletominorityshareholders | ||
| VII.Totalcomprehensiveincome | 132,052,531.08 | 60,305,229.91 |
| TotalcomprehensiveincomeattributabletoownersofparentCompany | 131,020,764.38 | 57,663,828.89 |
| Totalcomprehensiveincomeattributabletominorityshareholders | 1,031,766.70 | 2,641,401.02 |
| VIII.Earningspershare: | ||
| (i)Basicearningspershare | 0.3040 | 0.1338 |
| (ii)Dilutedearningspershare | 0.3040 | 0.1338 |
Asfortheenterprisecombinationunderthesamecontrol,thenetprofitachievedbythecombinedpartybeforeconsolidationwas0Yuanintheperiodwhile0YuanachievedlastperiodLegalRepresentative:FuChunlongPersoninchargeofAccountingWorks:LouHongPersoninchargeofAccountingInstitution:LouHong
4.ProfitStatementofParentCompany
InRMB
| Item | 2021 | 2020 |
| I.Operatingincome | 50,382,988.38 | 37,241,063.15 |
| Less:Operatingcost | 15,225,250.76 | 10,754,749.28 |
| Taxesandsurcharge | 1,563,395.23 | 1,176,003.82 |
| Salesexpenses | ||
| Administrationexpenses | 37,305,543.73 | 27,966,422.98 |
| R&Dexpenses | ||
| Financialexpenses | -2,644,425.65 | -1,876,961.86 |
| Including:Interestexpenses | ||
| Interestincome | 2,593,770.67 | -1,876,961.86 |
| Add:Otherincome | 42,502.63 | 21,849.42 |
| Investmentincome(Lossislistedwith“-”) | 28,187,188.70 | 33,827,292.08 |
| Including:InvestmentincomeonaffiliatedCompanyandjointventure | 18,339,555.32 | 22,156,744.28 |
| Theterminationofincomerecognitionforfinancialassetsmeasuredbyamortizedcost(Lossislistedwith“-”) | ||
| Netexposurehedgingincome(Lossislistedwith“-”) |
| Changingincomeoffairvalue(Lossislistedwith“-”) | 745,798.64 | 160,557.53 |
| Lossofcreditimpairment(Lossislistedwith“-”) | -2,107.49 | 639,993.94 |
| Lossesofdevaluationofasset(Lossislistedwith“-”) | -4,998,000.00 | |
| Incomeondisposalofassets(Lossislistedwith“-”) | ||
| II.Operatingprofit(Lossislistedwith“-”) | 27,906,606.79 | 28,872,541.90 |
| Add:Non-operatingincome | 345,457.00 | 2,000.00 |
| Less:Non-operatingexpense | 18,810.00 | |
| III.TotalProfit(Lossislistedwith“-”) | 28,252,063.79 | 28,855,731.90 |
| Less:Incometax | 1,272,119.13 | 445,762.97 |
| IV.Netprofit(Netlossislistedwith“-”) | 26,979,944.66 | 28,409,968.93 |
| (i)continuousoperatingnetprofit(netlosslistedwith‘-”) | 26,979,944.66 | 28,409,968.93 |
| (ii)terminationofnetprofit(netlosslistedwith‘-”) | ||
| V.Netafter-taxofothercomprehensiveincome | ||
| (i)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss | ||
| 1.Changesofthedefinedbenefitplansthatre-measured | ||
| 2.Othercomprehensiveincomeunderequitymethodthatcannotbetransfertogain/loss | ||
| 3.Changeoffairvalueofinvestmentinotherequityinstrument | ||
| 4.Fairvaluechangeofenterprise'screditrisk | ||
| 5.Other | ||
| (ii)Othercomprehensiveincomeitemswhichwillbereclassified |
| subsequentlytoprofitorloss | ||
| 1.Othercomprehensiveincomeunderequitymethodthatcantransfertogain/loss | ||
| 2.Changeoffairvalueofotherdebtinvestment | ||
| 3.Amountoffinancialassetsre-classifytoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionforotherdebtinvestment | ||
| 5.Cashflowhedgingreserve | ||
| 6.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements | ||
| 7.Other | ||
| VI.Totalcomprehensiveincome | 26,979,944.66 | 28,409,968.93 |
| VII.Earningspershare: | ||
| (i)Basicearningspershare | ||
| (ii)Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
InRMB
| Item | 2021 | 2020 |
| I.Cashflowsarisingfromoperatingactivities: | ||
| Cashreceivedfromsellingcommoditiesandprovidinglaborservices | 569,337,075.41 | 564,587,333.62 |
| Netincreaseofcustomerdepositandinterbankdeposit | ||
| Netincreaseofloanfromcentralbank | ||
| Netincreaseofcapitalborrowedfromotherfinancialinstitution | ||
| Cashreceivedfromoriginalinsurancecontractfee |
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseofinsuredsavingsandinvestment | ||
| Cashreceivedfrominterest,commissionchargeandcommission | ||
| Netincreaseofcapitalborrowed | ||
| Netincreaseofreturnedbusinesscapital | ||
| Netcashreceivedbyagentsinsaleandpurchaseofsecurities | ||
| Write-backoftaxreceived | ||
| Othercashreceivedconcerningoperatingactivities | 23,982,581.39 | 16,119,424.38 |
| Subtotalofcashinflowarisingfromoperatingactivities | 593,319,656.80 | 580,706,758.00 |
| Cashpaidforpurchasingcommoditiesandreceivinglaborservice | 353,121,840.30 | 316,124,308.90 |
| Netincreaseofcustomerloansandadvances | ||
| Netincreaseofdepositsincentralbankandinterbank | ||
| Cashpaidfororiginalinsurancecontractcompensation | ||
| Netincreaseofcapitallent | ||
| Cashpaidforinterest,commissionchargeandcommission | ||
| Cashpaidforbonusofguaranteeslip | ||
| Cashpaidto/forstaffandworkers | 59,390,161.24 | 55,902,432.37 |
| Taxespaid | 36,031,576.13 | 82,073,162.16 |
| Othercashpaidconcerningoperatingactivities | 18,164,344.23 | 17,501,551.69 |
| Subtotalofcashoutflowarisingfromoperatingactivities | 466,707,921.90 | 471,601,455.12 |
| Netcashflowsarisingfromoperating | 126,611,734.90 | 109,105,302.88 |
| activities | ||
| II.Cashflowsarisingfrominvestingactivities: | ||
| Cashreceivedfromrecoveringinvestment | 1,539,526,090.00 | 1,372,569,181.67 |
| Cashreceivedfrominvestmentincome | 47,997,386.49 | 42,049,595.57 |
| Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets | 495,926.60 | 922,066.49 |
| Netcashreceivedfromdisposalofsubsidiariesandotherunits | ||
| Othercashreceivedconcerninginvestingactivities | 1,931,753.79 | 50,069,962.11 |
| Subtotalofcashinflowfrominvestingactivities | 1,589,951,156.88 | 1,465,610,805.84 |
| Cashpaidforpurchasingfixed,intangibleandotherlong-termassets | 138,364,122.34 | 172,620,388.10 |
| Cashpaidforinvestment | 1,582,280,000.00 | 1,590,780,000.00 |
| Netincreaseofmortgagedloans | ||
| Netcashreceivedfromsubsidiariesandotherunitsobtained | ||
| Othercashpaidconcerninginvestingactivities | ||
| Subtotalofcashoutflowfrominvestingactivities | 1,720,644,122.34 | 1,763,400,388.10 |
| Netcashflowsarisingfrominvestingactivities | -130,692,965.46 | -297,789,582.26 |
| III.Cashflowsarisingfromfinancingactivities: | ||
| Cashreceivedfromabsorbinginvestment | 7,000,000.00 | |
| Including:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiaries | 7,000,000.00 | |
| Cashreceivedfromloans | 75,601,270.39 | 11,171,759.33 |
| Othercashreceivedconcerningfinancingactivities | 24,800,000.00 |
| Subtotalofcashinflowfromfinancingactivities | 75,601,270.39 | 42,971,759.33 |
| Cashpaidforsettlingdebts | ||
| Cashpaidfordividendandprofitdistributingorinterestpaying | 12,289,486.85 | 21,825,829.24 |
| Including:Dividendandprofitofminorityshareholderpaidbysubsidiaries | 1,928,433.70 | 3,767,675.45 |
| Othercashpaidconcerningfinancingactivities | 56,273,820.35 | 24,800,000.00 |
| Subtotalofcashoutflowfromfinancingactivities | 68,563,307.20 | 46,625,829.24 |
| Netcashflowsarisingfromfinancingactivities | 7,037,963.19 | -3,654,069.91 |
| IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate | 236,196.60 | 132,748.11 |
| V.Netincreaseofcashandcashequivalents | 3,192,929.23 | -192,205,601.18 |
| Add:Balanceofcashandcashequivalentsattheperiod-begin | 208,462,656.63 | 400,668,257.81 |
| VI.Balanceofcashandcashequivalentsattheperiod-end | 211,655,585.86 | 208,462,656.63 |
6.CashFlowStatementofParentCompany
InRMB
| Item | 2021 | 2020 |
| I.Cashflowsarisingfromoperatingactivities: | ||
| Cashreceivedfromsellingcommoditiesandprovidinglaborservices | 52,499,175.63 | 40,034,070.19 |
| Write-backoftaxreceived | ||
| Othercashreceivedconcerningoperatingactivities | 162,079,161.08 | 89,340,030.37 |
| Subtotalofcashinflowarisingfromoperatingactivities | 214,578,336.71 | 129,374,100.56 |
| Cashpaidforpurchasing |
| commoditiesandreceivinglaborservice | ||
| Cashpaidto/forstaffandworkers | 27,385,052.19 | 25,364,055.45 |
| Taxespaid | 4,272,039.88 | 56,569,832.96 |
| Othercashpaidconcerningoperatingactivities | 5,841,119.30 | 10,874,977.81 |
| Subtotalofcashoutflowarisingfromoperatingactivities | 37,498,211.37 | 92,808,866.22 |
| Netcashflowsarisingfromoperatingactivities | 177,080,125.34 | 36,565,234.34 |
| II.Cashflowsarisingfrominvestingactivities: | ||
| Cashreceivedfromrecoveringinvestment | 748,000,000.00 | 522,000,000.00 |
| Cashreceivedfrominvestmentincome | 20,498,702.12 | 30,170,547.80 |
| Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets | ||
| Netcashreceivedfromdisposalofsubsidiariesandotherunits | 103,777,307.13 | |
| Othercashreceivedconcerninginvestingactivities | 910,112.34 | |
| Subtotalofcashinflowfrominvestingactivities | 873,186,121.59 | 552,170,547.80 |
| Cashpaidforpurchasingfixed,intangibleandotherlong-termassets | 115,295,464.00 | 94,282,308.52 |
| Cashpaidforinvestment | 975,000,000.00 | 618,747,000.00 |
| Netcashreceivedfromsubsidiariesandotherunitsobtained | ||
| Othercashpaidconcerninginvestingactivities | ||
| Subtotalofcashoutflowfrominvestingactivities | 1,090,295,464.00 | 713,029,308.52 |
| Netcashflowsarisingfrominvestingactivities | -217,109,342.41 | -160,858,760.72 |
| III.Cashflowsarisingfromfinancingactivities: |
| Cashreceivedfromabsorbinginvestment | ||
| Cashreceivedfromloans | 75,601,270.39 | 11,171,759.33 |
| Othercashreceivedconcerningfinancingactivities | 24,800,000.00 | |
| Subtotalofcashinflowfromfinancingactivities | 75,601,270.39 | 35,971,759.33 |
| Cashpaidforsettlingdebts | ||
| Cashpaidfordividendandprofitdistributingorinterestpaying | 10,314,757.50 | 18,104,449.44 |
| Othercashpaidconcerningfinancingactivities | 24,800,000.00 | |
| Subtotalofcashoutflowfromfinancingactivities | 10,314,757.50 | 42,904,449.44 |
| Netcashflowsarisingfromfinancingactivities | 65,286,512.89 | -6,932,690.11 |
| IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate | 67,783.02 | 133,134.43 |
| V.Netincreaseofcashandcashequivalents | 25,325,078.84 | -131,093,082.06 |
| Add:Balanceofcashandcashequivalentsattheperiod-begin | 42,609,260.98 | 173,702,343.04 |
| VI.Balanceofcashandcashequivalentsattheperiod-end | 67,934,339.82 | 42,609,260.98 |
7.StatementofChangesinOwners’Equity(Consolidated)
ThisPeriod
InRMB
| Item | 2021 | ||||||||||||||
| Owners’equityattributabletotheparentCompany | Minorityinterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstrument | Capitalreserve | Less:Inventoryshares | Othercomprehensiveinco | Reasonablereserve | Surplusreserve | Provisionofgeneralrisk | Retainedprofit | Other | Subtotal | |||||
| Preferredsto | Perpetualcap | Other | |||||||||||||
| ck | italsecurities | me | |||||||||||||
| I.Theendingbalanceofthepreviousyear | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 23,848,485.62 | 424,141,893.34 | 1,310,524,675.47 | 74,121,426.34 | 1,384,646,101.81 | |||||||
| Add:Changesofaccountingpolicy | |||||||||||||||
| Errorcorrectionofthelastperiod | |||||||||||||||
| Enterprisecombineunderthesamecontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Thebeginningbalanceofthecurrentyear | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 23,848,485.62 | 424,141,893.34 | 1,310,524,675.47 | 74,121,426.34 | 1,384,646,101.81 | |||||||
| III.Increase/Decreaseintheperiod(Decreaseislistedwith“-”) | 2,697,994.47 | 119,701,603.51 | 122,399,597.98 | -49,855,873.99 | 72,543,723.99 | ||||||||||
| (i)Totalcomprehensiveincome | 131,020,764.38 | 131,020,764.38 | 1,031,766.70 | 132,052,531.08 | |||||||||||
| (ii)Owners’devotedanddecreasedcapital | -50,000,000.00 | -50,000,000.00 | |||||||||||||
| 1.Common | -50, | -50, |
| sharesinvestedbyshareholders | 000,000.00 | 000,000.00 | ||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | ||||||||
| 3.Amountreckonedintoownersequitywithshare-basedpayment | ||||||||
| 4.Other | ||||||||
| (iii)Profitdistribution | 2,697,994.47 | -11,319,160.87 | -8,621,166.40 | -1,928,433.70 | -10,549,600.10 | |||
| 1.Withdrawalofsurplusreserves | 2,697,994.47 | -2,697,994.47 | ||||||
| 2.Withdrawalofgeneralriskprovisions | ||||||||
| 3.Distributionforowners(orshareholders) | -8,621,166.40 | -8,621,166.40 | 1,928,433.70 | 10,549,600.10 | ||||
| 4.Other | ||||||||
| (iv)Carryingforwardinternalowners’equity | ||||||||
| 1.Capitalreservesconversedtocapital(share |
| capital) | |||||||||||||
| 2.Surplusreservesconversedtocapital(sharecapital) | |||||||||||||
| 3.Remedyinglosswithsurplusreserve | |||||||||||||
| 4.Carry-overretainedearningsfromthedefinedbenefitplans | |||||||||||||
| 5.Carry-overretainedearningsfromothercomprehensiveincome | |||||||||||||
| 6.Other | |||||||||||||
| (v)Reasonablereserve | |||||||||||||
| 1.Withdrawalinthereportperiod | |||||||||||||
| 2.Usageinthereportperiod | |||||||||||||
| (vi)Others | 1,040,793.01 | 1,040,793.01 | |||||||||||
| IV.Balanceattheendoftheperiod | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 26,546,480.09 | 543,843,496.85 | 1,432,924,273.45 | 24,265,552.35 | 1,457,189,825.80 |
LastPeriod
InRMB
| Item | 2020 | ||||||||||||||
| Owners’equityattributabletotheparentCompany | Minorityinterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstrument | Capitalreserve | Less:Inventoryshares | Othercomprehensiveincome | Reasonablereserve | Surplusreserve | Provisionofgeneralrisk | Retainedprofit | Other | Subtotal | |||||
| Preferredstock | Perpetualcapitalsecurities | Other | |||||||||||||
| I.Theendingbalanceofthepreviousyear | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 21,007,488.73 | 387,423,510.78 | 1,270,965,296.02 | 68,247,700.77 | 1,339,212,996.79 | |||||||
| Add:Changesofaccountingpolicy | |||||||||||||||
| Errorcorrectionofthelastperiod | |||||||||||||||
| Enterprisecombineunderthesamecontrol | |||||||||||||||
| Other | |||||||||||||||
| II.Thebeginningbalanceofthecurrentyear | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 21,007,488.73 | 387,423,510.78 | 1,270,965,296.02 | 68,247,700.77 | 1,339,212,996.79 | |||||||
| III.Increase/Decreasein | 2,840,99 | 36,718,3 | 39,559,3 | 5,873,725. | 45,433,105 | ||||||||||
| theperiod(Decreaseislistedwith“-”) | 6.89 | 82.56 | 79.45 | 57 | .02 | |||
| (i)Totalcomprehensiveincome | 57,663,828.89 | 57,663,828.89 | 2,641,401.02 | 60,305,229.91 | ||||
| (ii)Owners’devotedanddecreasedcapital | 7,000,000.00 | 7,000,000.00 | ||||||
| 1.Commonsharesinvestedbyshareholders | 7,000,000.00 | 7,000,000.00 | ||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | ||||||||
| 3.Amountreckonedintoownersequitywithshare-basedpayment | ||||||||
| 4.Other | ||||||||
| (iii)Profitdistribution | 2,840,996.89 | -20,945,446.33 | -18,104,449.44 | -3,767,675.45 | -21,872,124.89 | |||
| 1.Withdrawalofsurplusreserves | 2,840,996.89 | -2,840,996.89 | ||||||
| 2.Withdrawalofgeneralriskprovisions |
| 3.Distributionforowners(orshareholders) | -18,104,449.44 | -18,104,449.44 | -3,767,675.45 | -21,872,124.89 | ||
| 4.Other | ||||||
| (iv)Carryingforwardinternalowners’equity | ||||||
| 1.Capitalreservesconversedtocapital(sharecapital) | ||||||
| 2.Surplusreservesconversedtocapital(sharecapital) | ||||||
| 3.Remedyinglosswithsurplusreserve | ||||||
| 4.Carry-overretainedearningsfromthedefinedbenefitplans | ||||||
| 5.Carry-overretainedearningsfromothercomprehensiveincome | ||||||
| 6.Other | ||||||
| (v)Reasonable |
| reserve | |||||||||||||
| 1.Withdrawalinthereportperiod | |||||||||||||
| 2.Usageinthereportperiod | |||||||||||||
| (vi)Others | |||||||||||||
| IV.Balanceattheendoftheperiod | 431,058,320.00 | 431,449,554.51 | 26,422.00 | 23,848,485.62 | 424,141,893.34 | 1,310,524,675.47 | 74,121,426.34 | 1,384,646,101.81 |
8.StatementofChangesinOwners’Equity(ParentCompany)
ThisPeriod
InRMB
| Item | 2021 | |||||||||||
| Sharecapital | Otherequityinstrument | Capitalreserve | Less:Inventoryshares | Othercomprehensiveincome | Reasonablereserve | Surplusreserve | Retainedprofit | Other | Totalowners’equity | |||
| Preferredstock | Perpetualcapitalsecurities | Other | ||||||||||
| I.Theendingbalanceofthepreviousyear | 431,058,320.00 | 428,256,131.23 | 23,848,485.62 | 187,380,544.20 | 1,070,543,481.05 | |||||||
| Add:Changesofaccountingpolicy | ||||||||||||
| Errorcorrectionofthelastperiod | ||||||||||||
| Other | ||||||||||||
| II.Thebeginningbalanceofthecurrentyear | 431,058,320.00 | 428,256,131.23 | 23,848,485.62 | 187,380,544.20 | 1,070,543,481.05 | |||
| III.Increase/Decreaseintheperiod(Decreaseislistedwith“-”) | 2,697,994.47 | 15,660,783.79 | 18,358,778.26 | |||||
| (i)Totalcomprehensiveincome | 26,979,944.66 | 26,979,944.66 | ||||||
| (ii)Owners’devotedanddecreasedcapital | ||||||||
| 1.Commonsharesinvestedbyshareholders | ||||||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | ||||||||
| 3.Amountreckonedintoownersequitywithshare-basedpayment | ||||||||
| 4.Other | ||||||||
| (iii)Profitdistribution | 2,697,994.47 | -11,319,160.87 | -8,621,166.40 | |||||
| 1.Withdrawalofsurplusreserves | 2,697,994.47 | -2,697,994.47 | ||||||
| 2.Distribution | -8,62 | -8,621,1 |
| forowners(orshareholders) | 1,166.40 | 66.40 | ||
| 3.Other | ||||
| (iv)Carryingforwardinternalowners’equity | ||||
| 1.Capitalreservesconversedtocapital(sharecapital) | ||||
| 2.Surplusreservesconversedtocapital(sharecapital) | ||||
| 3.Remedyinglosswithsurplusreserve | ||||
| 4.Carry-overretainedearningsfromthedefinedbenefitplans | ||||
| 5.Carry-overretainedearningsfromothercomprehensiveincome | ||||
| 6.Other | ||||
| (v)Reasonablereserve | ||||
| 1.Withdrawalinthereportperiod | ||||
| 2.Usageinthereportperiod | ||||
| (vi)Others |
| IV.Balanceattheendoftheperiod | 431,058,320.00 | 428,256,131.23 | 26,546,480.09 | 203,041,327.99 | 1,088,902,259.31 |
Lastperiod
InRMB
| Item | 2020 | |||||||||||
| Sharecapital | Otherequityinstrument | Capitalreserve | Less:Inventoryshares | Othercomprehensiveincome | Reasonablereserve | Surplusreserve | Retainedprofit | Other | Totalowners’equity | |||
| Preferredstock | Perpetualcapitalsecurities | Other | ||||||||||
| I.Theendingbalanceofthepreviousyear | 431,058,320.00 | 428,256,131.23 | 21,007,488.73 | 179,916,021.60 | 1,060,237,961.56 | |||||||
| Add:Changesofaccountingpolicy | ||||||||||||
| Errorcorrectionofthelastperiod | ||||||||||||
| Other | ||||||||||||
| II.Thebeginningbalanceofthecurrentyear | 431,058,320.00 | 428,256,131.23 | 21,007,488.73 | 179,916,021.60 | 1,060,237,961.56 | |||||||
| III.Increase/Decreaseintheperiod(Decreaseislistedwith“-”) | 2,840,996.89 | 7,464,522.60 | 10,305,519.49 | |||||||||
| (i)Totalcomprehensiv | 28,409,968.93 | 28,409,968.93 | ||||||||||
| eincome | |||||
| (ii)Owners’devotedanddecreasedcapital | |||||
| 1.Commonsharesinvestedbyshareholders | |||||
| 2.Capitalinvestedbyholdersofotherequityinstruments | |||||
| 3.Amountreckonedintoownersequitywithshare-basedpayment | |||||
| 4.Other | |||||
| (iii)Profitdistribution | 2,840,996.89 | -20,945,446.33 | -18,104,449.44 | ||
| 1.Withdrawalofsurplusreserves | 2,840,996.89 | -2,840,996.89 | |||
| 2.Distributionforowners(orshareholders) | -18,104,449.44 | -18,104,449.44 | |||
| 3.Other | |||||
| (iv)Carryingforwardinternalowners’equity | |||||
| 1.Capitalreserves |
| conversedtocapital(sharecapital) | ||||||||
| 2.Surplusreservesconversedtocapital(sharecapital) | ||||||||
| 3.Remedyinglosswithsurplusreserve | ||||||||
| 4.Carry-overretainedearningsfromthedefinedbenefitplans | ||||||||
| 5.Carry-overretainedearningsfromothercomprehensiveincome | ||||||||
| 6.Other | ||||||||
| (v)Reasonablereserve | ||||||||
| 1.Withdrawalinthereportperiod | ||||||||
| 2.Usageinthereportperiod | ||||||||
| (vi)Others | ||||||||
| IV.Balanceattheendoftheperiod | 431,058,320.00 | 428,256,131.23 | 23,848,485.62 | 187,380,544.20 | 1,070,543,481.05 |
ShenzhenTellusHoldingCo.,Ltd.
NotestotheFinancialStatements
Fortheyearended31December2021
（AllamountsareexpressedinChineseYuan(“CNY”)unlessotherwisestated）
Note1.BASICINFORMATIONABOUTTHECOMPANY
1.1CorporateInformationShenzhenTellusHoldingCo.,Ltd.(hereinafterreferredtoas“theCompany”)wasdevelopedfromtheShenzhenMachineryIndustryCo.,Ltd,whichwasregisteredinShenzhenAdministrationforIndustryandCommerceonNovember10,1986.Thecompanynowholdsabusinesslicensewithaunifiedsocialcreditcodeof91440300192192210U,witharegisteredcapitalofCNY431,058,320.00andatotalof431,058,320.00shares,including392,778,320.00sharesAand38,280,000.00sharesB.In1993,withtheapprovalofthereplyonthereorganizationofShenzhenTellusMachineryCo.,Ltd.intoapubliccompanylimitedbyshares(ShenFuBanFu[1992]No.1850)issuedbytheGeneralOfficeofShenzhenMunicipalPeople'sGovernmentandthereplyontheissuanceofsharesbyShenzhenTelluselectromechanicalCo.,Ltd.(ShenRenYinFuZi[1993]No.092)issuedbytheShenzhenSpecialEconomicZoneBranchofthepeople'sBankofChina,thecompanyissuedsharesforthefirsttimeandwasreorganizedintoapubliccompanylimitedbyshares.Atthismoment,thewholesharecapitalis166.88millionshares,includingtheoriginal120.9millionshareswith45.98millionnewshares.Thenewshareisdividedintotwoparts:AShare-25.98millionshares,BShare-20.00millionshares.Theparvalueofthecompany'ssharesisCNY1pershare.OnJune21,1993,thecompany'sshareswerelistedandtradedinShenzhenStockExchange.Accordingtothedecisionmadebygeneralmeetingofshareholdersin1993,theCompanydistributeda2for10bonusshareswithcashdividendofCNY0.5.Afterthat,thewholecapitalchangedintoCNY200,256,000.00.On28May1995,theGroupshareholdermeetingagreedaboutplanofdistributingbonusandincreasingcapital.Onthebasisof200,256,000sharesintheendof1994,theGroupdistributed0.5of10shares,andgiveCNY0.5fromeveryincreasing0.5sharecapital.Afterthat,theGroup’ssharecapitalincreasedtoCNY220,281,600.00.Accordingtothe19thspecialmeetingofthe7thBoardMeetingonApril21st,2015,andthe4thstockholders’meetingonJune3rd,2015,theCompanyprivateissuedCNYordinaryshares(Ashares)77,000,000.00sharestoShenzhenSpecialEconomicZoneDevelopmentGroupCo.,Ltd.,LtdandShenzhenYuanzhifuhaijewelryindustryinvestmententerprise(limitedpartnership).Afterthat,theCompany’scapitalincreasedtoCNY297,281,600.00.Accordingtothedecisionmadebygeneralmeetingofshareholdersin2018,theCompanydistributeda4.5for10bonusshares.ThewholesharecapitalchangedintoCNY431,058,320.00.
Themainbusinessactivitiesofthecompany:automobilesales,automobilemaintenanceandtesting,jewelryoperation,propertyleasingandservices,etc.Thefinancialstatementswereapprovedandauthorizedforissue,upontheresolutionoftheCompany’sBoardofDirectorsmeetingonApril7,2022.
1.2ScopeofConsolidation(a)IncorporatedsubsidiariesoftheCompanyAt31December2021,subsidiariesoftheCompanyareasfollows:
| SequenceNumber | NameofSubsidiaries | AbbreviationofSubsidiaries | ProportionofShareholding(orsimilarequityinterest)(%) | |
| Direct | Indirect | |||
| 1 | 深圳市特力新永通汽车发展有限公司(ShenzhenTellusXinyongtongAutomobileDevelopmentCo.,Ltd.*) | XinyongtongAutomobile | 5.00 | 95.00 |
| 2 | 深圳市宝安石泉实业有限公司(ShenzhenBao’anShiquanIndustrialCo.,Ltd.*) | Bao’anShiquan | 100.00 | |
| 3 | 深圳市特发特力房地产有限公司(ShenzhenSDGTellusRealEstateCo.,Ltd.*) | SDGTellusRealEstate | 100.00 | |
| 4 | 深圳市特力创盈科技有限公司(ShenzhenTellusChuangyingTechnologyCo.,Ltd.*) | ChuangyingTechnology | 100.00 | |
| 5 | 深圳市新永通机动车检测设备有限公司(ShenzhenXinyongtongAutoVehicleInspectionEquipmentCo.,Ltd.*) | XinyongtongInspection | 51.00 | |
| 6 | 深圳市汽车工业贸易有限公司(ShenzhenAutomobileIndustryandTradeCo.,Ltd.*) | AutomobileIndustryandTrade | 100.00 | |
| 7 | 深圳市汽车工业供销公司(ShenzhenAutomobileIndustry | AutomobileIndustrySupplyand | 100.00 | |
| SequenceNumber | NameofSubsidiaries | AbbreviationofSubsidiaries | ProportionofShareholding(orsimilarequityinterest)(%) | |
| Direct | Indirect | |||
| SupplyandMarketingCo.,Ltd.*) | Marketing | |||
| 8 | 深圳特发华日汽车企业有限公司(ShenzhenSDGHuariAutomobileEnterpriseCo.,Ltd.*) | HuariAutomobile | 60.00 | |
| 9 | 深圳市华日安信汽车检测有限公司(ShenzhenHuariAnxinAutomobileInspectionCo.,Ltd.*) | AnxinAutomobileInspection | 100.00 | |
| 10 | 深圳市中天实业有限公司(ShenzhenZhongtianIndustrialCo.,Ltd.*) | Zhongtian | 100.00 | |
| 11 | 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | HuariToyota | 60.00 | |
| 12 | 深圳市特力宝库供应链科技有限公司(ShenzhenTellusBaokuSupplyChainTechnologyCo.,Ltd.*) | TellusBaoku | 100.00 | |
| 13 | 深圳珠宝产业服务有限公司(ShenzhenJewelryIndustryServiceCo.Ltd.*) | ShenzhenJewelry | 65.00 | |
| 14 | 上海泛粤钻石有限公司(ShanghaifanyuediamondCo.,Ltd.*) | ShanghaiFanyue | 100.00 | |
Fordetailsofthesubsidiariesmentionedabove,pleaserefertoNote7INTERESTINOTHERENTITIES(b)ChangeofthescopeofconsolidationThenewlyincreasedsubsidiariesduringthereportingperiodareasfollows:
| SequenceNumber | NameofSubsidiaries | AbbreviationofSubsidiaries | ReportingPeriod | ReasonofIncorporation |
| 1 | 上海泛粤钻石有限公司(Shanghaifanyue | ShanghaiFanyue | 2021 | Newlyestablished |
henewlydecreasedsubsidiariesduringthereportingperiodareasfollows:
diamondCo.,Ltd.*)
SequenceNumber
| SequenceNumber | NameofSubsidiaries | AbbreviationofSubsidiaries | ReportingPeriod | ReasonofIncorporation |
| 1 | 四川特力珠宝科技有限公司(SichuanTellusJewelryTechnologyCo.,Ltd.*) | SichuanJewelry | 2021 | Liquidation&Cancellation |
| 2 | 安徽特力星光珠宝投资有限公司(AnhuiTellusSeonJewelryInvestmentCo.,Ltd.*) | TellusSeon | 2021 | Liquidation&Cancellation |
| 3 | 安徽特力星光金尊珠宝有限公司(AnhuiTellusSeonJinzunJewelryCo.,Ltd*) | TellusSeonJinzun | 2021 | Liquidation&Cancellation |
Forthedetailsofthechangeofconsolidationscope,pleaserefertoNote6CHANGESINTHESCOPEOFCONSOLIDATION.Note2.BASISOFPREPARATIONOFTHEFINANCIALSTATEMENTS
2.1BasisofPreparationBasedongoingconcern,accordingtoactuallyoccurredtransactionsandevents,theCompanypreparesitsfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises–Basicstandardsandconcreteaccountingstandards,AccountingStandardsforBusinessEnterprises–ApplicationGuidelines,AccountingStandardsforBusinessEnterprises–Interpretationsandotherrelevantprovisions(collectivelyknownas“AccountingStandardsforBusinessEnterprises,issuedbyMinistryofFinanceofPRC”).
2.2GoingConcern
TheCompanyhasassesseditsabilitytocontinuallyoperateforthenexttwelvemonthsfromtheendofthereportingperiod,andnoanymattersthatmayresultindoubtonitsabilityasagoingconcernwerenoted.Therefore,itisreasonablefortheCompanytopreparefinancialstatementsonthegoingconcernbasis.
Note3.SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATESThefollowingsignificantaccountingpoliciesandaccountingestimatesoftheCompanyareformulatedinaccordancewiththeAccountingStandardsforBusinessEnterprises.BusinessesnotmentionedarecompliedwithrelevantaccountingpoliciesoftheAccountingStandardsforBusinessEnterprises.
3.1StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesTheCompanypreparesitsfinancialstatementsinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises,trulyandcompletelyreflectingtheCompany’sfinancialpositionasat31December2020,anditsoperatingresults,changesinshareholders'equity,cashflowsandotherrelatedinformationfortheyearthenended.
3.2AccountingPeriodTheaccountingyearoftheCompanyisfromJanuary1toDecember31incalendaryear.
3.3OperatingCycleThenormaloperatingcycleoftheCompanyistwelvemonths.
3.4FunctionalCurrencyTheCompanytakesChineseYuan(“CNY”)asthefunctionalcurrency.TheCompany’soverseassubsidiarieschoosethecurrencyoftheprimaryeconomicenvironmentinwhichthesubsidiariesoperateasthefunctionalcurrency.
3.5AccountingTreatmentofBusinessCombinationsunderandnotunderCommonControl
(a)BusinesscombinationsundercommoncontrolTheassetsandliabilitiesthattheCompanyobtainsinabusinesscombinationundercommoncontrolshallbemeasuredattheircarryingamountoftheacquiredentityatthecombinationdate.Iftheaccountingpolicyadoptedbytheacquiredentityisdifferentfromthatadoptedbytheacquiringentity,theacquiringentityshall,accordingtoaccountingpolicyitadopts,adjusttherelevantitemsinthefinancialstatementsoftheacquiredpartybasedontheprincipalofmateriality.Asforthedifferencebetweenthecarryingamountofthenetassetsobtainedbytheacquiringentityandthecarryingamountoftheconsiderationpaidbyit,thecapitalreserve(capitalpremiumorsharepremium)shallbeadjusted.Ifthecapitalreserve(capitalpremiumorsharepremium)isnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Fortheaccountingtreatmentofbusinesscombinationundercommoncontrolbystepacquisitions,pleaserefertoNote3.6(6).(b)BusinesscombinationsnotundercommoncontrolTheassetsandliabilitiesthattheCompanyobtainsinabusinesscombinationnotundercommoncontrolshallbemeasuredattheirfairvalueattheacquisitiondate.Iftheaccountingpolicyadoptedbytheacquiredentityisdifferentfromthatadoptedbythe
acquiringentity,theacquiringentityshall,accordingtoaccountingpolicyitadopts,adjusttherelevantitemsinthefinancialstatementsoftheacquiredentitybasedontheprincipalofmateriality.Theacquiringentityshallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentityasgoodwill.Theacquiringentityshall,pursuanttothefollowingprovisions,treatthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentity:
(i)Itshallreviewthemeasurementofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesitobtainsfromtheacquiredentityaswellasthecombinationcosts;(ii)If,afterthereview,thecombinationcostsarestilllessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentity,thebalanceshallberecognizedinprofitorlossofthereportingperiod.Fortheaccountingtreatmentofbusinesscombinationunderthesamecontrolbystepacquisitions,pleaserefertoNote3.6(f).(c)TreatmentofbusinesscombinationrelatedcostsTheintermediarycostssuchasaudit,legalservicesandvaluationconsultingandotherrelatedmanagementcoststhataredirectlyattributabletothebusinesscombinationshallbechargedinprofitorlossintheperiodinwhichtheyareincurred.Thecoststoissueequityordebtsecuritiesfortheconsiderationofbusinesscombinationshallberecordedasapartofthevalueoftherespectequityordebtsecuritiesuponinitialrecognition.
3.6MethodofPreparingtheConsolidatedFinancialStatements(a)ScopeofconsolidationThescopeofconsolidatedfinancialstatementsshallbedeterminedonthebasisofcontrol.Itnotonlyincludessubsidiariesdeterminedbasedonvotingpower(orsimilar)orotherarrangement,butalsostructuredentitiesunderoneorseveralcontractarrangements.ControlexistswhentheCompanyhasallthefollowing:powerovertheinvestee;exposure,orrightstovariablereturnsfromtheCompany’sinvolvementwiththeinvestee;andtheabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’sreturns.SubsidiariesaretheentitiesthatcontrolledbytheCompany(includingenterprise,adivisiblepartoftheinvestee,andstructuredentitycontrolledbytheenterprise).Astructuredentity(sometimescalledaSpecialPurposeEntity)isanentitythathasbeendesignedsothatvotingorsimilarrightsarenotthedominantfactorindecidingwhocontrolstheentity.(b)SpecialrequirementastheparentCompanyisaninvestmententityIftheparentCompanyisaninvestmententity,itshouldmeasureitsinvestmentsinparticularsubsidiariesasfinancialassetsatfairvaluethroughprofitorlossinsteadofconsolidatingthosesubsidiariesinitsconsolidatedandseparatefinancialstatements.However,asanexceptiontothisrequirement,ifasubsidiaryprovidesinvestment-relatedservicesoractivitiestotheinvestmententity,itshould
beconsolidated.TheparentCompanyisdefinedasinvestmententitywhenmeetsfollowingconditions:
a.Obtainsfundsfromoneormoreinvestorsforthepurposeofprovidingthoseinvestorswithinvestmentmanagementservices;b.Commitstoitsinvestorsthatitsbusinesspurposeistoinvestfundssolelyforreturnsfromcapitalappreciation,investmentincomeorboth;andc.Measuresandevaluatestheperformanceofsubstantiallyallofitsinvestmentsonafairvaluebasis.IftheparentCompanybecomesaninvestmententity,itshallceasetoconsolidateitssubsidiariesatthedateofthechangeinstatus,exceptforanysubsidiarywhichprovidesinvestment-relatedservicesoractivitiestotheinvestmententityshallbecontinuedtobeconsolidated.Thedeconsolidationofsubsidiariesisaccountedforasthoughtheinvestmententitypartiallydisposedsubsidiarieswithoutlossofcontrol.WhentheparentCompanypreviouslyclassifiedasaninvestmententityceasestobeaninvestmententity,subsidiarythatwaspreviouslymeasuredatfairvaluethroughprofitorlossshallbeincludedinthescopeofconsolidatedfinancialstatementsatthedateofthechangeinstatus.Thefairvalueofthesubsidiaryatthedateofchangerepresentsthetransferreddeemedconsiderationinaccordancewiththeaccountingforbusinesscombinationnotundercommoncontrol.(c)MethodofpreparingtheconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsshallbepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andusingotherrelatedinformation.Whenpreparingconsolidatedfinancialstatements,theCompanyshallconsidertheentiregroupasanaccountingentity,adoptuniformaccountingpoliciesandapplytherequirementsofAccountingStandardforBusinessEnterprisesrelatedtorecognition,measurementandpresentation.Theconsolidatedfinancialstatementsshallreflecttheoverallfinancialposition,operatingresultsandcashflowsofthegroup.(i)Likeitemsofassets,liabilities,equity,income,expensesandcashflowsoftheparentarecombinedwiththoseofthesubsidiaries.(ii)Thecarryingamountoftheparent’sinvestmentineachsubsidiaryiseliminated(off-set)againsttheparent’sportionofequityofeachsubsidiary.(iii)EliminatetheimpactofintragrouptransactionsbetweentheCompanyandthesubsidiariesorbetweensubsidiaries,andwhenintragrouptransactionsindicateanimpairmentofrelatedassets,thelossesshallberecognizedinfull.(iv)Makeadjustmentstospecialtransactionsfromtheperspectiveofthegroup.
(d)Methodofpreparationoftheconsolidatedfinancialstatementswhensubsidiariesareacquiredordisposedinthereportingperiod(i)AcquisitionofsubsidiariesorbusinessA.SubsidiariesorbusinessacquiredthroughbusinesscombinationundercommoncontrolWhenpreparingconsolidatedstatementsoffinancialposition,theopeningbalanceoftheconsolidatedbalancesheetshallbeadjusted.Relateditemsofcomparativefinancialstatementsshallbeadjustedaswell,deemingthatthecombinedentityhasalwaysexistedeversincetheultimatecontrollingpartybegantocontrol.Incomes,expensesandprofitsofthesubsidiaryincurredfromthebeginningofthereportingperiodtotheendofthereportingperiodshallbeincludedintotheconsolidatedstatementofprofitorloss.Relateditemsofcomparativefinancialstatementsshallbeadjustedaswell,deemingthatthecombinedentityhasalwaysexistedeversincetheultimatecontrollingpartybegantocontrol.Cashflowsfromthebeginningofthereportingperiodtotheendofthereportingperiodshallbeincludedintotheconsolidatedstatementofcashflows.Relateditemsofcomparativefinancialstatementsshallbeadjustedaswell,deemingthatthecombinedentityhasalwaysexistedeversincetheultimatecontrollingpartybegantocontrol.B.SubsidiariesorbusinessacquiredthroughbusinesscombinationnotundercommoncontrolWhenpreparingtheconsolidatedstatementsoffinancialposition,theopeningbalanceoftheconsolidatedstatementsoffinancialpositionshallnotbeadjusted.Incomes,expensesandprofitsofthesubsidiaryincurredfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintotheconsolidatedstatementofprofitorloss.Cashflowsfromtheacquisitiondatetotheendofthereportingperiodshallbeincludedintotheconsolidatedstatementofcashflows.(ii)DisposalofsubsidiariesorbusinessWhenpreparingtheconsolidatedstatementsoffinancialposition,theopeningbalanceoftheconsolidatedstatementsoffinancialpositionshallnotbeadjusted.Incomes,expensesandprofitsincurredfromthebeginningofthesubsidiarytothedisposaldateshallbeincludedintotheconsolidatedstatementofprofitorloss.Cashflowsfromthebeginningofthesubsidiarytothedisposaldateshallbeincludedintotheconsolidatedstatementofcashflows.(e)Specialconsiderationinconsolidationelimination(i)Long-termequityinvestmentheldbythesubsidiariestotheCompanyshallberecognizedastreasurystockoftheCompany,whichisoffsetwiththeowner’sequity,representedas“treasurystock”under“owner’sequity”intheconsolidatedstatement
offinancialposition.Long-termequityinvestmentheldbysubsidiariesbetweeneachotherisaccountedfortakinglong-termequityinvestmentheldbytheCompanytoitssubsidiariesasreference.Thatis,thelong-termequityinvestmentiseliminated(off-set)againsttheportionofthecorrespondingsubsidiary’sequity.(ii)Duetonotbelongingtopaid-incapital(orsharecapital)andcapitalreserve,andbeingdifferentfromretainedearningsandundistributedprofit,“Specificreserves”and“Generalriskprovision”shallberecoveredbasedontheproportionattributabletoownersoftheparentCompanyafterlong-termequityinvestmenttothesubsidiariesiseliminatedwiththesubsidiaries’equity.(iii)Iftemporarytimingdifferencebetweenthebookvalueoftheassetsandliabilitiesintheconsolidatedstatementoffinancialpositionandtheirtaxbasisisgeneratedasaresultofeliminationofunrealizedinter-Companytransactionprofitorloss,deferredtaxassetsofdeferredtaxliabilitiesshallberecognized,andincometaxexpenseintheconsolidatedstatementofprofitorlossshallbeadjustedsimultaneously,excludingdeferredtaxesrelatedtotransactionsoreventsdirectlyrecognizedinowner’sequityorbusinesscombination.(iv)Unrealisedinter-CompanytransactionsprofitorlossgeneratedfromtheCompanysellingassetstoitssubsidiariesshallbeeliminatedagainst“netprofitattributedtotheownersoftheparentCompany”infull.Unrealizedinter-CompanytransactionsprofitorlossgeneratedfromthesubsidiariessellingassetstotheCompanyshallbeeliminatedbetween“netprofitattributedtotheownersoftheparentCompany”and“non-controllinginterests”pursuanttotheproportionoftheCompanyintherelatedsubsidiaries.Unrealizedinter-Companytransactionsprofitorlossgeneratedfromtheassetssalesbetweenthesubsidiariesshallbeeliminatedbetween“netprofitattributedtotheownersoftheparentCompany”and“non-controllinginterests”pursuanttotheproportionoftheCompanyinthesellingsubsidiaries.(v)Iflossattributedtotheminorityshareholdersofasubsidiaryincurrentperiodismorethantheproportionofnon-controllinginterestinthissubsidiaryatthebeginningoftheperiod,non-controllinginterestisstilltobewrittendown.(f)AccountingforSpecialTransactions(i)Purchasingofnon-controllinginterestsWhere,theCompanypurchasesnon-controllinginterestsofitssubsidiary,intheseparatefinancialstatementsoftheCompany,thecostofthelong-termequityinvestmentobtainedinpurchasingnon-controllinginterestsismeasuredatthefairvalueoftheconsiderationpaid.Intheconsolidatedfinancialstatements,differencebetweenthecostofthelong-termequityinvestmentnewlyobtainedinpurchasingnon-controllinginterestsandshareofthesubsidiary’snetassetsfromtheacquisitiondateorcombinationdatecontinuinglycalculatedpursuanttothenewlyacquiredshareholdingproportionshallbeadjustedintocapitalreserve(capitalpremiumorsharepremium).Ifcapitalreserveisnotenoughtobeoffset,surplusreserveandundistributedprofitshallbeoffsetin
turn.(ii)GainingcontroloverthesubsidiaryinstagesthroughmultipletransactionsA.BusinesscombinationundercommoncontrolinstagesthroughmultipletransactionsOnthecombinationdate,intheseparatefinancialstatement,initialcostofthelong-termequityinvestmentisdeterminedaccordingtotheshareofcarryingamountoftheacquiree’snetassetsintheultimatecontrollingentity’sconsolidatedfinancialstatementsaftercombination.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthecarryingamountofthelong-terminvestmentheldpriorofcontrolplusbookvalueofadditionalconsiderationpaidatacquisitiondateisadjustedintocapitalreserve(capitalpremiumorsharepremium).Ifthecapitalreserveisnotenoughtoabsorbthedifference,anyexcessshallbeadjustedagainstsurplusreserveandundistributedprofitinturn.Intheconsolidatedfinancialstatements,theassetsandliabilitiesacquiredduringthecombinationshouldberecognizedattheircarryingamountintheultimatecontrollingentity’sconsolidatedfinancialstatementsonthecombinationdateunlessanyadjustmentisresultedfromthedifferenceinaccountingpolicies.Thedifferencebetweenthecarryingamountoftheinvestmentheldpriorofcontrolplusbookvalueofadditionalconsiderationpaidontheacquisitiondateandthenetassetsacquiredthroughthecombinationisadjustedintocapitalreserve(capitalpremiumorsharepremium).Ifthecapitalreserveisnotenoughtoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Iftheacquiringentityholdsequityinvestmentintheacquiredentitypriortothecombinationdateandtheequityinvestmentisaccountedforundertheequitymethod,relatedprofitorloss,othercomprehensiveincomeandotherchangesinequitywhichhavebeenrecognizedduringtheperiodfromthelaterofthedateoftheCompanyobtainingoriginalequityinterestandthedateofboththeacquirerandtheacquireeundercommoncontrolofthesameultimatecontrollingpartytothecombinationdateshouldbeoffsetagainsttheopeningbalanceofretainedearningsatthecomparativefinancialstatementsperiodrespectively.B.BusinesscombinationnotundercommoncontrolinstagesthroughmultipletransactionsOntheconsolidationdate,intheseparatefinancialstatements,theinitialcostoflong-termequityinvestmentisdeterminedaccordingtothecarryingamountoftheoriginallong-terminvestmentplusthecostofnewinvestment.Intheconsolidatedfinancialstatements,theequityinterestoftheacquiredentityheldpriortotheacquisitiondateshallbere-measuredatitsfairvalueontheacquisitiondate.Differencebetweenthefairvalueoftheequityinterestanditsbookvalueisrecognizedasinvestmentincome.Theothercomprehensiveincomerelatedtotheequityinterestheldpriortotheacquisitiondatecalculatedthroughequitymethod,shouldbetransferredtocurrentinvestmentincomeoftheacquisitionperiod,excludingothercomprehensiveincomeresultedfromtheremeasurementofthenetassetsornetliabilitiesunderdefinedbenefitplan.TheCompanyshalldiscloseacquisition-datefairvalueoftheequityinterestheldpriortotheacquisitiondate,andtherelatedgainsorlossesduetotheremeasurementbasedonfairvalue.
(iii)DisposalofinvestmentinsubsidiarieswithoutalossofcontrolForpartialdisposalofthelong-termequityinvestmentinthesubsidiarieswithoutalossofcontrol,whentheCompanypreparesconsolidatedfinancialstatements,differencebetweenconsiderationreceivedfromthedisposalandthecorrespondingshareofsubsidiary’snetassetscumulativelycalculatedfromtheacquisitiondateorcombinationdateshallbeadjustedintocapitalreserve(capitalpremiumorsharepremium).Ifthecapitalreserveisnotenoughtoabsorbthedifference,anyexcessshallbeoffsetagainstretainedearnings.(iv)Disposalofinvestmentinsubsidiarieswithalossofcontrol
A.DisposalthroughonetransactionIftheCompanylosescontrolinaninvesteethroughpartialdisposaloftheequityinvestment,whentheconsolidatedfinancialstatementsareprepared,theretainedequityinterestshouldbere-measuredatfairvalueatthedateoflossofcontrol.Thedifferencebetweeni)thefairvalueofconsiderationreceivedfromthedisposalplusnon-controllinginterestretained;ii)shareoftheformersubsidiary’snetassetscumulativelycalculatedfromtheacquisitiondateorcombinationdateaccordingtotheoriginalproportionofequityinterest,shallberecognizedincurrentinvestmentincomewhencontrolislost.Moreover,othercomprehensiveincomeandotherchangesinequityrelatedtotheequityinvestmentintheformersubsidiaryshallbetransferredintocurrentinvestmentincomewhencontrolislost,excludingothercomprehensiveincomeresultedfromtheremeasurementofthemovementofnetassetsornetliabilitiesunderdefinedbenefitplan.B.DisposalinstagesIntheconsolidatedfinancialstatements,whetherthetransactionsshouldbeaccountedforas“asingletransaction”needstobedecidedfirstly.Ifthedisposalinstagesshouldnotbeclassifiedas“asingletransaction”,intheseparatefinancialstatements,fortransactionspriorofthedateoflossofcontrol,carryingamountofeachdisposaloflong-termequityinvestmentneedtoberecognized,andthedifferencebetweenconsiderationreceivedandthecarryingamountoflong-termequityinvestmentcorrespondingtotheequityinterestdisposedshouldberecognizedincurrentinvestmentincome;intheconsolidatedfinancialstatements,thedisposaltransactionshouldbeaccountedforaccordingtorelatedpolicyin“Disposaloflong-termequityinvestmentinsubsidiarieswithoutalossofcontrol”.Ifthedisposalinstagesshouldbeclassifiedas“asingletransaction”,thesetransactionsshouldbeaccountedforasasingletransactionofdisposalofsubsidiaryresultinginlossofcontrol.Intheseparatefinancialstatements,foreachtransactionpriorofthedateoflossofcontrol,differencebetweenconsiderationreceivedandthecarryingamountoflong-termequityinvestmentcorrespondingtotheequityinterestdisposedshouldberecognizedasothercomprehensiveincomefirstly,andtransferredtoprofitor
lossasawholewhencontrolislost;intheconsolidatedfinancialstatements,foreachtransactionpriorofthedateoflossofcontrol,differencebetweenconsiderationreceivedandproportionofthesubsidiary’snetassetscorrespondingtotheequityinterestdisposedshouldberecognizedinprofitorlossasawholewhencontrolislost.Inconsideringofthetermsandconditionsofthetransactionsaswellastheireconomicimpact,thepresenceofoneormoreofthefollowingindicatorsmayleadtoaccountformultipletransactionsasasingletransaction:
(a)Thetransactionsareenteredintosimultaneouslyorincontemplationofoneanother.(b)Thetransactionsformasingletransactiondesignedtoachieveanoverallcommercialeffect.(c)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction.(d)Onetransaction,whenconsideredonitsownmerits,doesnotmakeeconomicsense,butwhenconsideredtogetherwiththeothertransactionortransactionswouldbeconsideredeconomicallyjustifiable.(iii)DilutingequityshareofparentCompanyinitssubsidiariesduetoadditionalcapitalinjectionbythesubsidiaries’minorityshareholders.Othershareholders(minorityshareholders)ofthesubsidiariesinjectadditionalcapitalinthesubsidiaries,whichresultedinthedilutionofequityinterestofparentCompanyinthesesubsidiaries.Intheconsolidatedfinancialstatements,differencebetweenshareofthecorrespondingsubsidiaries’netassetscalculatedbasedontheparent’sequityinterestbeforeandafterthecapitalinjectionshallbeadjustedintocapitalreserve(capitalpremiumorsharepremium).Ifthecapitalreserveisnotenoughtoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.
3.7ClassificationofJointArrangementsandAccountingforJointOperationAjointarrangementisanarrangementofwhichtwoormorepartieshavejointcontrol.JointarrangementoftheCompanyisclassifiedaseitherajointoperationorajointventure.(a)JointoperationAjointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.TheCompanyshallrecognizethefollowingitemsinrelationtosharedinterestinajointoperation,andaccountfortheminaccordancewithrelevantaccountingstandardsoftheAccountingStandardsforBusinessEnterprises:
(i)itsassets,includingitsshareofanyassetsheldjointly;(ii)itsliabilities,includingitsshareofanyliabilitiesincurredjointly;(iii)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;(iv)itsshareoftherevenuefromthesaleoftheoutputbythejointoperation;and
(v)itsexpenses,includingitsshareofanyexpensesincurredjointly.(b)JointventureAjointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.TheCompanyaccountsforitsinvestmentinthejointventurebyapplyingtheequitymethodoflong-termequityinvestment.
3.8CashandCashEquivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.Cashequivalentsincludeshort-term(generallywithinthreemonthsofmaturityatacquisition),highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
3.9ForeignCurrencyTransactionsandTranslationofForeignCurrencyFinancialStatements(a)DeterminationoftheexchangerateforforeigncurrencytransactionsAtthetimeofinitialrecognitionofaforeigncurrencytransaction,theamountintheforeigncurrencyshallbetranslatedintotheamountinthefunctionalcurrencyatthespotexchangerateofthetransactiondate,oratanexchangeratewhichisdeterminedthroughasystematicandreasonablemethodandisapproximatetothespotexchangerateofthetransactiondate(hereinafterreferredtoastheapproximateexchangerate).(b)TranslationofmonetaryitemsdenominatedinforeigncurrencyonthebalancesheetdateTheforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate.Thebalanceofexchangearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdateshallberecordedintotheprofitsandlossesatthecurrentperiod.Theforeigncurrencynon-monetaryitemsmeasuredatthehistoricalcostshallstillbetranslatedatthespotexchangerateonthetransactiondate;fortheforeigncurrencynon-monetaryitemsrestatedtoafairvaluemeasurement,shallbetranslatedintotheatthespotexchangerateatthedatewhenthefairvaluewasdetermined,thedifferencebetweentherestatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountshallberecordedintotheprofitsandlossesatthecurrentperiod.(c)TranslationofforeigncurrencyfinancialstatementsBeforetranslatingthefinancialstatementsofforeignoperations,theaccountingperiodandaccountingpolicyshallbeadjustedsoastoconformtotheCompany.Theadjustedforeignoperationfinancialstatementsdenominatedinforeigncurrency(otherthanfunctionalcurrency)shallbetranslatedinaccordancewiththefollowingmethod:
(i)Theassetandliabilityitemsinthestatementoffinancialpositionshallbetranslatedatthespotexchangeratesatthedateof
thatstatementoffinancialposition..Theowners’equityitemsexceptundistributedprofitshallbetranslatedatthespotexchangerateswhentheyareincurred.(ii)Theincomeandexpenseitemsinthestatementofprofitandothercomprehensiveincomeshallbetranslatedatthespotexchangeratesorapproximateexchangerateatthedateoftransaction.Foreigncurrencycashflowsandcashflowsofforeignsubsidiariesshallbetranslatedatthespotexchangerateorapproximateexchangeratewhenthecashflowsareincurred.Theeffectofexchangeratechangesoncashispresentedseparatelyinthestatementofcashflowsasanadjustmentitem.(iv)Thedifferencesarisingfromthetranslationofforeigncurrencyfinancialstatementsshallbepresentedseparatelyas“othercomprehensiveincome”undertheowners’equityitemsoftheconsolidatedstatementoffinancialposition.Whendisposingaforeignoperationinvolvinglossofcontrol,thecumulativeamountoftheexchangedifferencesrelatingtothatforeignoperationrecognizedunderothercomprehensiveincomeinthestatementoffinancialposition,shallbereclassifiedintocurrentprofitorlossaccordingtotheproportiondisposed.
3.10FinancialInstrumentsFinancialinstrumentisanycontractwhichgivesrisetobothafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.(a)RecognitionandderecognitionoffinancialinstrumentAfinancialassetorafinancialliabilityshouldberecognizedinthestatementoffinancialpositionwhen,andonlywhen,anentitybecomespartytothecontractualprovisionsoftheinstrument.Afinancialassetcanonlybederecognizedwhenmeetsoneofthefollowingconditions:
(i)Therightstothecontractualcashflowsfromafinancialassetexpire(ii)Thefinancialassethasbeentransferredandmeetsoneofthefollowingderecognitionconditions:
Financialliabilities(orpartthereof)arederecognizedonlywhentheliabilityisextinguished—i.e.,whentheobligationspecifiedinthecontractisdischargedorcancelledorexpires.AnexchangeoftheCompany(borrower)andlenderofdebtinstrumentsthatcarrysignificantlydifferenttermsorasubstantialmodificationofthetermsofanexistingliabilityarebothaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.Purchaseorsaleoffinancialassetsinaregular-wayshallberecognizedandderecognizedusingtradedateaccounting.Aregular-waypurchaseorsaleoffinancialassetsisatransactionunderacontractwhosetermsrequiredeliveryoftheassetwithinthetimeframeestablishedgenerallybyregulationsorconventioninthemarketplaceconcerned.Tradedateisthedateatwhichtheentitycommitsitselftopurchaseorsellanasset.
(b)ClassificationandmeasurementoffinancialassetsAtinitialrecognition,theCompanyclassifieditsfinancialassetbasedonboththebusinessmodelformanagingthefinancialassetandthecontractualcashflowcharacteristicsofthefinancialasset:financialassetatamortizedcost,financialassetatfairvaluethroughprofitorloss(FVTPL)andfinancialassetatfairvaluethroughothercomprehensiveincome(FVTOCI).Reclassificationoffinancialassetsispermittedif,andonlyif,theobjectiveoftheentity’sbusinessmodelformanagingthosefinancialassetschanges.Inthiscircumstance,allaffectedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthechangesinbusinessmodel;Otherwise,thefinancialassetscannotbereclassifiedafterinitialrecognition.Financialassetsshallbemeasuredatinitialrecognitionatfairvalue.ForfinancialassetsmeasuredatFVTPL,transactioncostsarerecognizedincurrentprofitorloss.ForfinancialassetsnotmeasuredatFVTPL,transactioncostsshouldbeincludedintheinitialmeasurement.Notesreceivableoraccountsreceivablethatarisefromsalesofgoodsorrenderingofservicesareinitiallymeasuredatthetransactionpricedefinedintheaccountingstandardofrevenuewherethetransactiondoesnotincludeasignificantfinancingcomponent.Subsequentmeasurementoffinancialassetswillbebasedontheircategories:
(i)FinancialassetatamortizedcostThefinancialassetatamortizedcostcategoryofclassificationapplieswhenboththefollowingconditionsaremet:thefinancialassetisheldwithinthebusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflows,andthecontractualtermofthefinancialassetgivesriseonspecifieddatestocashflowsthataresolelypaymentofprincipalandinterestontheprincipalamountoutstanding.Thesefinancialassetsaresubsequentlymeasuredatamortizedcostbyadoptingtheeffectiveinterestratemethod.Anygainorlossarisingfromderecognitionaccordingtotheamortizationundereffectiveinterestratemethodorimpairmentarerecognizedincurrentprofitorloss.(ii)Financialassetatfairvaluethroughothercomprehensiveincome(FVTOCI)ThefinancialassetatFVTOCIcategoryofclassificationapplieswhenboththefollowingconditionsaremet:thefinancialassetisheldwithinthebusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingfinancialassets,andthecontractualtermofthefinancialassetgivesriseonspecifieddatestocashflowsthataresolelypaymentofprincipleandinterestontheprincipalamountoutstanding.Allchangesinfairvaluearerecognizedinothercomprehensiveincomeexceptforgainorlossarisingfromimpairmentorexchangedifferences,whichshouldberecognizedincurrentprofitorloss.Atderecognition,cumulativegainorlosspreviouslyrecognizedunderOCIisreclassifiedtocurrentprofitorloss.However,interestincomecalculatedbasedontheeffectiveinterestrateisincludedincurrentprofitorloss.TheCompanymakeanirrevocabledecisiontodesignatepartofnon-tradingequityinstrumentinvestmentsasmeasuredthroughFVTOCI.Allchangesinfairvaluearerecognizedinothercomprehensiveincomeexceptfordividendincomerecognizedincurrent
profitorloss.Atderecognition,cumulativegainorlossarereclassifiedtoretainedearnings.(iii)Financialassetatfairvaluethroughprofitorloss(FVTPL)Financialassetexceptforabovementionedfinancialassetatamortizedcostorfinancialassetatfairvaluethroughothercomprehensiveincome(FVTOCI),shouldbeclassifiedasfinancialassetatfairvaluethroughprofitorloss(FVTPL).Thesefinancialassetsshouldbesubsequentlymeasuredatfairvalue.Allthechangesinfairvalueareincludedincurrentprofitorloss.(c)ClassificationandmeasurementoffinancialliabilitiesTheCompanyclassifiedthefinancialliabilitiesasfinancialliabilitiesatfairvaluethroughprofitorloss(FVTPL),loancommitmentsatabelow-marketinterestrateandfinancialguaranteecontractsandfinancialassetatamortizedcost.Subsequentmeasurementoffinancialassetswillbebasedontheclassification:
(i)Financialliabilitiesatfairvaluethroughprofitorloss(FVTPL)Held-for-tradingfinancialliabilities(includingderivativesthatarefinancialliabilities)andfinancialliabilitiesdesignatedatFVTPLareclassifiedasfinancialliabilitiesatFVTP.Afterinitialrecognition,anygainorloss(includinginterestexpense)arerecognizedincurrentprofitorlossexceptforthosehedgeaccountingisapplied.ForfinancialliabilitythatisdesignatedasatFVTPL,changesinthefairvalueofthefinancialliabilitythatisattributabletochangesintheowncreditriskoftheissuershallbepresentedinothercomprehensiveincome.Atderecognition,cumulativegainorlosspreviouslyrecognizedunderOCIisreclassifiedtoretainedearnings.(ii)LoancommitmentsandfinancialguaranteecontractsLoancommitmentisacommitmentbytheCompanytoprovidealoantocustomerunderspecifiedcontractterms.Theprovisionofimpairmentlossesofloancommitmentsshallberecognizedbasedonexpectedcreditlossesmodel.FinancialguaranteecontractisacontractthatrequirestheCompanytomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Financialguaranteecontractsliabilityshallbesubsequentlymeasuredatthehigherof:Theamountofthelossallowancerecognizedaccordingtotheimpairmentprinciplesoffinancialinstruments;andtheamountinitiallyrecognizedlessthecumulativeamountofincomerecognizedinaccordancewiththerevenueprinciples.(iii)FinancialliabilitiesatamortizedcostAfterinitialrecognition,theCompanymeasuredotherfinancialliabilitiesatamortizedcostusingtheeffectiveinterestmethod.Exceptforspecialsituation,financialliabilitiesandequityinstrumentshouldbeclassifiedinaccordancewiththefollowingprinciples:
(i)IftheCompanyhasnounconditionalrighttoavoiddeliveringcashoranotherfinancialinstrumenttofulfillacontractual
obligation,thiscontractualobligationmeetthedefinitionoffinancialliabilities.Somefinancialinstrumentsdonotcomprisetermsandconditionsrelatedtoobligationsofdeliveringcashoranotherfinancialinstrumentexplicitly,theymayincludecontractualobligationindirectlythroughothertermsandconditions.(ii)IfafinancialinstrumentmustormaybesettledintheCompany'sownequityinstruments,itshouldbeconsideredthattheCompany’sownequityinstrumentsarealternativesofcashoranotherfinancialinstrument,ortoentitletheholderoftheequityinstrumentstosharingtheremainingrightsoverthenetassetsoftheissuer.Iftheformeristhecase,theinstrumentisaliabilityoftheissuer;otherwise,itisanequityinstrumentoftheissuer.Undersomecircumstances,itisregulatedinthecontractthatthefinancialinstrumentmustormaybesettledintheCompany'sownequityinstruments,where,amountofcontractualrightsandobligationsarecalculatedbymultiplyingthenumberoftheequityinstrumentstobeavailableordeliveredbyitsfairvalueuponsettlement.Suchcontractsshallbeclassifiedasfinancialliabilities,regardlessthattheamountofcontractualrightsandliabilitiesisfixed,orfluctuatetotallyorpartiallywithvariablesotherthanmarketpriceoftheentity’sownequityinstruments(suchasinterestrate,priceofsomekindofgoodsorsomekindoffinancialinstrument).(d)DerivativesandembeddedderivativesAtinitialrecognition,derivativesshallbemeasuredatfairvalueatthedateofderivativecontractsaresignedandsubsequentlymeasuredatfairvalue.Thederivativewithapositivefairvalueshallberecognizedasanasset,andwithanegativefairvalueshallberecognizedasaliability.Gainsorlossesarisingfromthechangesinfairvalueofderivativesshallberecognizeddirectlyintocurrentprofitorlossexceptfortheeffectiveportionofcashflowhedgeswhichshallberecognizedinothercomprehensiveincomeandreclassifiedintocurrentprofitorlosswhenthehedgeditemsaffectprofitorloss.Anembeddedderivativeisacomponentofahybridcontractwithafinancialassetasahost,theCompanyshallapplytherequirementsoffinancialassetclassificationtotheentirehybridcontract.Ifahostthatisnotafinancialassetandthehybridcontractisnotmeasuredatfairvaluewithchangesinfairvaluerecognizedinprofitorloss,andtheeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedtotheeconomiccharacteristicsandrisksofthehost,andaseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionofaderivative,theembeddedderivativeshallbeseparatedfromthehybridinstrumentandaccountedforasaseparatederivativeinstrument.IftheCompanyisunabletomeasurethefairvalueoftheembeddedderivativeattheacquisitiondateorsubsequentlyatthebalancesheetdate,theentirehybridcontractisdesignatedasfinancialassetsorfinancialliabilitiesatfairvaluethroughprofitorloss.(e)ImpairmentoffinancialinstrumentTheCompanyshallrecognizealossallowancebasedonexpectedcreditlossesonafinancialassetthatismeasuredatamortizedcost,
adebtinvestmentatfairvaluethroughothercomprehensiveincome,acontractasset,aleasereceivable,aloancommitmentandafinancialguaranteecontract.(i)MeasurementofexpectedcreditlossesExpectedcreditlossesaretheweightedaverageofcreditlossesofthefinancialinstrumentswiththerespectiverisksofadefaultoccurringastheweights.CreditlossisthedifferencebetweenallcontractualcashflowsthatareduetotheCompanyinaccordancewiththecontractandallthecashflowsthattheCompanyexpectstoreceive(ieallcashshortfalls),discountedattheoriginaleffectiveinterestrateorcredit-adjustedeffectiveinterestrateforpurchasedororiginatedcredit-impairedfinancialassets.Lifetimeexpectedcreditlossesaretheexpectedcreditlossesthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthexpectedcreditlossesaretheportionoflifetimeexpectedcreditlossesthatrepresenttheexpectedcreditlossesthatresultfromdefaulteventsonafinancialinstrumentthatarepossiblewithinthe12monthsafterthereportingdate(ortheexpectedlifetime,iftheexpectedlifeofafinancialinstrumentislessthan12months).Ateachreportingdate,theCompanyclassifiesfinancialinstrumentsintothreestagesandmakesprovisionsforexpectedcreditlossesaccordingly.Afinancialinstrumentofwhichthecreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisatstage1.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.Afinancialinstrumentwithasignificantincreaseincreditrisksinceinitialrecognitionbutisnotconsideredtobecredit-impairedisatstage2.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.Afinancialinstrumentisconsideredtobecredit-impairedasattheendofthereportingperiodisatstage3.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.TheCompanymayassumethatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowcreditriskatthereportingdateandmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.Forfinancialinstrumentatstage1,stage2andthosehavelowcreditrisk,theinterestrevenueshallbecalculatedbyapplyingtheeffectiveinterestratetothegrosscarryingamountofafinancialasset(ie,impairmentlossnotbeendeducted).Forfinancialinstrumentatstage3,interestrevenueshallbecalculatedbyapplyingtheeffectiveinterestratetotheamortizedcostafterdeductingofimpairmentloss.Fornotesreceivable,accountsreceivableandaccountsreceivablefinancing,nomatteritcontainsasignificantfinancingcomponentornot,theCompanyshallmeasurethelossallowanceatanamountequaltothelifetimeexpectedcreditlosses.
(a)Receivables/ContractAssetsForthenotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivableswhicharedemonstratedtobeimpairedbyanyobjectiveevidence,orapplicableforindividualassessment,theCompanyshallindividuallyassessforimpairmentandrecognizethelossallowanceforexpectedcreditlosses.IftheCompanydeterminesthatnoobjectiveevidenceofimpairmentexistsfornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivables,ortheexpectedcreditlossofasinglefinancialassetcannotbeassessedatreasonablecost,suchnotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivablesshallbedividedintoseveralgroupswithsimilarcreditriskcharacteristicsandcollectivelycalculatedtheexpectedcreditloss.Thedeterminationbasisofgroupsisasfollowing:
Determinationbasisofnotesreceivableisasfollowing:
Illustration:
Group1:CommercialacceptancebillsGroup2:BankacceptancebillsForeachgroup,theCompanycalculatesexpectedcreditlossesthroughdefaultexposureandthelifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.Determinationbasisofaccountsreceivableisasfollowing:
Illustration:
Group1:PortfoliogroupedwithagesGroup2:PortfoliogroupedwithbusinessofjewelrysalesForeachgroup,theCompanycalculatesexpectedcreditlossesthroughpreparinganaginganalysisschedulewiththelifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.Determinationbasisofotherreceivablesisasfollowing:
Illustration:
Group1:InterestreceivableGroup2:DividendreceivableGroup3:PortfoliogroupedwithagesGroup4:Depositandguaranteereceivable
Group5:PortfoliogroupedwithbalancesduefromconsolidatedpartiesForeachgroup,theCompanycalculatesexpectedcreditlossesthroughdefaultexposureandthe12-monthsorlifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.Determinationbasisoflong-termreceivablesfinancingisasfollowing:
Illustration:
Group1:OthersForgroup1,theCompanycalculatesexpectedcreditlossesthroughdefaultexposureandthe12-monthsorlifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.
(b)Debtinvestmentandotherdebtinvestment
Fordebtinvestmentandotherdebtinvestment,theCompanyshallcalculatetheexpectedcreditlossthroughthedefaultexposureandthe12-monthorlifetimeexpectedcreditlossratebasedonthenatureoftheinvestment,counterpartyandthetypeofriskexposure.(ii)LowcreditriskIfthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfillitscontractualcashflowobligations.(iii)SignificantincreaseincreditriskTheCompanyshallassesswhetherthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,usingthechangeintheriskofadefaultoccurringovertheexpectedlifeofthefinancialinstrument,throughthecomparisonoftheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition.Tomakethatassessment,theCompanyshallconsiderreasonableandsupportableinformation,thatisavailablewithoutunduecostoreffort,andthatisindicativeofsignificantincreasesincreditrisksinceinitialrecognition,includingforward-lookinginformation.TheinformationconsideredbytheCompanyareasfollowing:
?Significantchangesininternalpriceindicatorsofcreditriskasaresultofachangeincreditrisksinceinception?Existingorforecastadversechangeinthebusiness,financialoreconomicconditionsoftheborrowerthatresultsina
significantchangeintheborrower’sabilitytomeetitsdebtobligations；
?Anactualorexpectedsignificantchangeintheoperatingresultsoftheborrower;Anactualorexpectedsignificantadversechangeintheregulatory,economic,ortechnologicalenvironmentoftheborrower；?Significantchangesinthevalueofthecollateralsupportingtheobligationorinthequalityofthird-partyguaranteesorcreditenhancements,whichareexpectedtoreducetheborrower’seconomicincentivetomakescheduledcontractualpaymentsortootherwisehaveaneffectontheprobabilityofadefaultoccurring;
?Significantchangethatareexpectedtoreducetheborrower’seconomicincentivetomakescheduledcontractualpayments;
?Expectedchangesintheloandocumentationincludinganexpectedbreachofcontractthatmayleadtocovenantwaiversoramendments,interestpaymentholidays,interestratestep-ups,requiringadditionalcollateralorguarantees,orotherchangestothecontractualframeworkoftheinstrument；
?Significantchangesintheexpectedperformanceandbehavioroftheborrower；
?Contractualpaymentsaremorethan30dayspastdue.Dependingonthenatureofthefinancialinstruments,theCompanyshallassesswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognitiononanindividualfinancialinstrumentoragroupoffinancialinstruments.Whenassessedbasedonagroupoffinancialinstruments,theCompanycangroupfinancialinstrumentsonthebasisofsharedcreditriskcharacteristics,forexample,pastdueinformationandcreditriskrating.Generally,theCompanyshalldeterminethecreditriskonafinancialassethasincreasedsignificantlysinceinitialrecognitionwhencontractualpaymentsaremorethan30dayspastdue.TheCompanycanonlyrebutthispresumptioniftheCompanyhasreasonableandsupportableinformationthatisavailablewithoutunduecostoreffort,thatdemonstratesthatthecreditriskhasnotincreasedsignificantlysinceinitialrecognitioneventhoughthecontractualpaymentsaremorethan30dayspastdue.(iv)Credit-impairedfinancialassetTheCompanyshallassessateachreportingdatewhetherthecreditimpairmenthasoccurredforfinancialassetatamortizedcostanddebtinvestmentatfairvaluethroughothercomprehensiveincome.Afinancialassetiscredit-impairedwhenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthatfinancialassethaveoccurred.Evidencesthatafinancialassetiscredit-impairedincludeobservabledataaboutthefollowingevents:
Significantfinancialdifficultyoftheissuerortheborrower；abreachofcontract,suchasadefaultorpastdueevent;thelender(s)of
theborrower,foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,havinggrantedtotheborroweraconcession(s)thatthelender(s)wouldnototherwiseconsider；itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganization；thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties；thepurchaseororiginationofafinancialassetatadeepdiscountthatreflectstheincurredcreditlosses.(v)PresentationofimpairmentofexpectedcreditlossInordertoreflectthechangesofcreditriskoffinancialinstrumentsinceinitialrecognition,theCompanyshallateachreportingdateremeasuretheexpectedcreditlossandrecognizeinprofitorloss,asanimpairmentgainorloss,theamountofexpectedcreditlossesaddition(orreversal).Forfinancialassetatamortizedcost,thelossallowanceshallreducethecarryingamountofthefinancialassetinthestatementoffinancialposition;fordebtinvestmentatfairvaluethroughothercomprehensiveincome,thelossallowanceshallberecognizedinothercomprehensiveincomeandshallnotreducethecarryingamountofthefinancialassetinthestatementoffinancialposition.(vi)Write-offTheCompanyshalldirectlyreducethegrosscarryingamountofafinancialassetwhentheCompanyhasnoreasonableexpectationsofrecoveringthecontractualcashflowofafinancialassetinitsentiretyoraportionthereof.Suchwrite-offconstitutesaderecognitionofthefinancialasset.ThiscircumstanceusuallyoccurswhentheCompanydeterminesthatthedebtorhasnoassetsorsourcesofincomethatcouldgeneratesufficientcashflowtorepaythewrite-offamount.Recoveryoffinancialassetwrittenoffshallberecognizedinprofitorlossasreversalofimpairmentloss.(f)TransferoffinancialassetsTransferoffinancialassetsreferstofollowingtwosituations:
?Transfersthecontractualrightstoreceivethecashflowsofthefinancialasset;?Transferstheentireorapartofafinancialassetandretainsthecontractualrightstoreceivethecashflowsofthefinancialasset,butassumesacontractualobligationtopaythecashflowstooneormorerecipients.(i)DerecognitionoftransferredassetsIftheCompanytransferssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,orneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialassetbuthasnotretainedcontrolofthefinancialasset,thefinancialassetshallbederecognized.WhethertheCompanyhasretainedcontrolofthetransferredassetdependsonthetransferee’sabilitytoselltheasset.Ifthetransfereehasthepracticalabilitytoselltheassetinitsentiretytoanunrelatedthirdpartyandisabletoexercisethatability
unilaterallyandwithoutneedingtoimposeadditionalrestrictionsonthetransfer,theCompanyhasnotretainedcontrol.TheCompanyjudgeswhetherthetransferoffinancialassetqualifiesforderecognitionbasedonthesubstanceofthetransfer.Ifthetransferoffinancialassetqualifiesforderecognitioninitsentirety,thedifferencebetweenthefollowingshallberecognizedinprofitorloss:
?Thecarryingamountoftransferredfinancialasset;?Thesumofconsiderationreceivedandthepartderecognizedofthecumulativechangesinfairvaluepreviouslyrecognizedinothercomprehensiveincome(ThefinancialassetsinvolvedinthetransferareclassifiedasfinancialassetsatfairvaluethroughothercomprehensiveincomeinaccordancewithArticle18oftheAccountingStandardsforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments).Ifthetransferredassetisapartofalargerfinancialassetandtheparttransferredqualifiesforderecognition,thepreviouscarryingamountofthelargerfinancialassetshallbeallocatedbetweenthepartthatcontinuestoberecognized(Forthispurpose,aretainedservicingassetshallbetreatedasapartthatcontinuestoberecognized)andthepartthatisderecognized,basedontherelativefairvaluesofthosepartsonthedateofthetransfer.Thedifferencebetweenfollowingtwoamountsshallberecognizedinprofitorloss:
?Thecarryingamount(measuredatthedateofderecognition)allocatedtothepartderecognized；?Thesumoftheconsiderationreceivedforthepartderecognizedandpartderecognizedofthecumulativechangesinfairvaluepreviouslyrecognizedinothercomprehensiveincome(ThefinancialassetsinvolvedinthetransferareclassifiedasfinancialassetsatfairvaluethroughothercomprehensiveincomeinaccordancewithArticle18oftheAccountingStandardsforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments).(ii)ContinuinginvolvementintransferredassetsIftheCompanyneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofatransferredasset,andretainscontrolofthetransferredasset,theCompanyshallcontinuetorecognizethetransferredassettotheextentofitscontinuinginvolvementandalsorecognizeanassociatedliability.TheextentoftheCompany’scontinuinginvolvementinthetransferredassetistheextenttowhichitisexposedtochangesinthevalueofthetransferredasset(iii)ContinuetorecognizethetransferredassetsIftheCompanyretainssubstantiallyalltherisksandrewardsofownershipofthetransferredfinancialasset,theCompanyshallcontinuetorecognizethetransferredassetinitsentiretyandtheconsiderationreceivedshallberecognizedasafinancialliability.Thefinancialassetandtheassociatedfinancialliabilityshallnotbeoffset.Insubsequentaccountingperiod,theCompanyshall
continuouslyrecognizeanyincome(gain)arisingfromthetransferredassetandanyexpense(loss)incurredontheassociatedliability.(g)OffsettingfinancialassetsandfinancialliabilitiesFinancialassetsandfinancialliabilitiesshallbepresentedseparatelyinthestatementoffinancialpositionandshallnotbeoffset.Whenmeetsthefollowingconditions,financialassetsandfinancialliabilitiesshallbeoffsetandthenetamountpresentedinthestatementoffinancialposition:
TheCompanycurrentlyhasalegallyenforceablerighttosetofftherecognizedamounts;TheCompanyintendseithertosettleonanetbasis,ortorealizetheassetandsettletheliabilitysimultaneously.Inaccountingforatransferofafinancialassetthatdoesnotqualifyforderecognition,theCompanyshallnotoffsetthetransferredassetandtheassociatedliability.(h)DeterminationoffairvalueoffinancialinstrumentsDeterminationoffinancialassetsandfinancialliabilitiespleaserefertoNote3.11
3.11FairValueMeasurementFairvaluereferstothepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.TheCompanydeterminesfairvalueoftherelatedassetsandliabilitiesbasedonmarketvalueintheprincipalmarket,orintheabsenceofaprincipalmarket,inthemostadvantageousmarketpricefortherelatedassetorliability.Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.Theprincipalmarketisthemarketinwhichtransactionsforanassetorliabilitytakeplacewiththegreatestvolumeandfrequency.Themostadvantageousmarketisthemarketwhichmaximizesthevaluethatcouldbereceivedfromsellingtheassetandminimizesthevaluewhichisneededtobepaidinordertotransferaliability,consideringtheeffectoftransportcostsandtransactioncostsboth.Iftheactivemarketofthefinancialassetorfinancialliabilityexists,theCompanyshallmeasurethefairvalueusingthequotedpriceintheactivemarket.Iftheactivemarketofthefinancialinstrumentisnotavailable,theCompanyshallmeasurethefairvalueusingvaluationtechniques.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.
?Valuationtechniques
TheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,includingthemarketapproach,theincomeapproachandthecostapproach.TheCompanyshallusevaluationtechniquesconsistentwithoneormoreofthoseapproachestomeasurefairvalue.Ifmultiplevaluationtechniquesareusedtomeasurefairvalue,theresultsshallbeevaluatedconsideringthereasonablenessoftherangeofvaluesindicatedbythoseresults.Afairvaluemeasurementisthepointwithinthatrangethatismostrepresentativeoffairvalueinthecircumstances.Whenusingthevaluationtechnique,theCompanyshallgivetheprioritytorelevantobservableinputs.Theunobservableinputscanonlybeusedwhenrelevantobservableinputsisnotavailableorpracticallywouldnotbeobtained.Observableinputsrefertotheinformationwhichisavailablefrommarketandreflectstheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability.UnobservableInputsrefertotheinformationwhichisnotavailablefrommarketandithastobedevelopedusingthebestinformationavailableinthecircumstancesfromtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability.
?FairvaluehierarchyToCompanyestablishesafairvaluehierarchythatcategorizesintothreelevelstheinputstovaluationtechniquesusedtomeasurefairvalue.ThefairvaluehierarchygivesthehighestprioritytoLevel1inputsandsecondtotheLevel2inputsandthelowestprioritytoLevel3inputs.Level1inputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level3inputsareunobservableinputsfortheassetorliability.
3.12Inventories(a)Classificationofinventories
Investmentpropertyincludeslanduserightofrent-outpropertyandofpropertyheldforcapitalappreciationandbuildingsthathavebeenleasedout.(b)Measurementmethodofcostofinventoriessoldorused
Thecostofinventoriesusedorsoldisdeterminedonthefirstin-firstout,orindividualvaluationmethodbasis.(c)Inventorysystem
Theperpetualinventorysystemisadopted.Theinventoriesshouldbecountedatleastonceayear,andsurplusorlossesofinventorystocktakingshallbeincludedincurrentprofitandloss.
(d)ProvisionforimpairmentofinventoryInventoriesarestatedatthelowerofcostandnetrealizablevalue.Theexcessofcostovernetrealizablevalueoftheinventoriesisrecognizedasprovisionforimpairmentofinventory,andrecognizedincurrentprofitorloss.Netrealizablevalueoftheinventoryshouldbedeterminedonthebasisofreliableevidenceobtained,andfactorssuchaspurposeofholdingtheinventoryandimpactofpostbalancesheeteventshallbeconsidered.(i)Innormaloperationprocess,finishedgoods,productsandmaterialsfordirectsale,theirnetrealizablevaluesaredeterminedatestimatedsellingpriceslessestimatedsellingexpensesandrelevanttaxesandsurcharges;forinventoriesheldtoexecutesalescontractorservicecontract,theirnetrealizablevaluesarecalculatedonthebasisofcontractprice.IfthequantitiesofinventoriesspecifiedinsalescontractsarelessthanthequantitiesheldbytheCompany,thenetrealizablevalueoftheexcessportionofinventoriesshallbebasedongeneralsellingprices.Netrealizablevalueofmaterialsheldforsaleshallbemeasuredbasedonmarketprice.(ii)Formaterialsinstockneedtobeprocessed,intheordinarycourseofproductionandbusiness,netrealizablevalueisdeterminedattheestimatedsellingpricelesstheestimatedcostsofcompletion,theestimatedsellingexpensesandrelevanttaxes.Ifthenetrealizablevalueofthefinishedproductsproducedbysuchmaterialsishigherthanthecost,thematerialsshallbemeasuredatcost;ifadeclineinthepriceofmaterialsindicatesthatthecostofthefinishedproductsexceedsitsnetrealizablevalue,thematerialsaremeasuredatnetrealizablevalueanddifferencesshallberecognizedattheprovisionforimpairment.(iii)Provisionsforinventoryimpairmentaregenerallydeterminedonanindividualbasis.Forinventorieswithlargequantityandlowunitprice,theprovisionsforinventoryimpairmentaredeterminedonacategorybasis.(iv)Ifanyfactorrenderingwrite-downsoftheinventorieshasbeeneliminatedatthereportingdate,theamountswrittendownarerecoveredandreversedtotheextentoftheinventoryimpairment,whichhasbeenprovidedfor.Thereversalshallbeincludedinprofitorloss.
3.13ContractassetsandContractliabilities
TheCompanypresentscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenitsperformanceobligationsandcustomers’payments.Contractassetsandcontractliabilitiesunderthesamecontractshalloffseteachotherandbepresentedonanetbasis.TheCompanypresentsanunconditionalrighttoconsideration(i.e.,onlythepassageoftimeisrequiredbeforetheconsiderationisdue)asareceivable,andpresentsarighttoconsiderationinexchangeforgoodsthatithastransferredtoacustomer(whichisconditionalonsomethingotherthanthepassageoftime)asacontractasset.FortheCompany'sdeterminationmethodandaccountingtreatmentmethodfortheexpectedcreditlossofcontractassets,pleaserefer
toNote3.10FinancialInstrumentsfordetails.TheCompanypresentsanobligationtotransfergoodstoacustomerforwhichtheCompanyhasreceivedconsideration(ortheamountisdue)fromthecustomerasacontractliability.
3.14ContractcostsAssetsrelatedtocontractcostsincludingcostsofobtainingacontractandcoststofulfilacontract.TheCompanyrecognizesasanassettheincrementalcostsofobtainingacontractifthosecostsareexpectedtoberecovered.Thecostsofobtainingacontractshallbeincludedintoprofitorlosswhenincurrediftheamortizationperiodoftheassetisoneyearorless.Ifthecostsincurredinfulfillingacontractarenotwithinthescopeofstandardsrelatedtoinventories,fixedassetsorintangibleassets,etc.,theCompanyshallrecognizethecoststofulfilacontractasanassetifallthefollowingcriteriaaresatisfied:
(i)Thecostsrelatedirectlytoacontractortoananticipatedcontract,includingdirectlabor,directmaterials,manufacturingoverheadcost(orsimilarcost),costthatareexplicitlychargeabletothecustomerunderthecontract,andothercoststhatareonlyrelatedtothecontract;(ii)ThecostsenhanceresourcesoftheCompanythatwillbeusedinsatisfyingperformanceobligationsinthefuture;
(iii)Thecostsareexpectedtoberecovered.Iftheincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,itshallberecognizedasanassetasthecontractacquisitioncost.
Theassetsrelatedtothecontractcostshallbeamortizedonthesamebasisastheincomefromgoodsorservicesrelatedtotheassets;however,iftheamortizationperiodofthecontractacquisitioncostislessthanoneyear,thecompanyshallincludeitinthecurrentprofitandlosswhenitoccurs.
Ifthebookvalueoftheassetsrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoitems,thecompanywillmakeprovisionforimpairmentfortheexcesspartandrecognizeitasthelossofassetimpairment,andfurtherconsiderwhethertheestimatedliabilitiesrelatedtothelosscontractshouldbemade:
(i)Theresidualconsiderationexpectedtobeobtainedduetothetransferofgoodsorservicesrelatedtotheasset;
(ii)Theestimatedcosttobeincurredforthetransferoftherelevantgoodsorservices.
Iftheaboveprovisionforimpairmentofassetsissubsequentlyreversed,thebookvalueoftheassetafterreversalshallnotexceedthebookvalueoftheassetonthereversaldatewithoutprovisionforimpairment.
Thecontractperformancecostrecognizedasanassetwithanamortizationperiodofnomorethanoneyearoronenormal
businesscycleatthetimeofinitialrecognitionshallbelistedinthe"inventory"item,andtheamortizationperiodofnomorethanoneyearoronenormalbusinesscycleatthetimeofinitialrecognitionshallbelistedinthe"othernon-currentassets"item.
Thecontractacquisitioncostrecognizedasanassetshallbelistedintheitemof"othercurrentassets"whentheamortizationperioddoesnotexceedoneyearoronenormalbusinesscycleatthetimeofinitialrecognition,andlistedintheitemof"othernoncurrentassets"whentheamortizationperiodexceedsoneyearoronenormalbusinesscycleatthetimeofinitialrecognition.
3.15Non-currentassetsordisposalgroupsasheldforsale(a)Classificationofnon-currentassets(ordisposalgroups)asheldforsaleTheCompanyclassifiesanon-currentasset(ordisposalgroup)asheldforsaleifthefollowingrequirementsaremetsimultaneously:
(i)Theassetordisposalgroupmustbeavailableforimmediatesaleinitspresentconditionsubjectonlytothetermsthatareusualandcustomaryforsalesofsuchassets(ordisposalgroups).(ii)Itssalemustbehighlyprobable,i.e,theCompanymustbecommittedtoaplantoselltheasset(ordisposalgroup)andobtaindefinitepurchasecommitment,andthesaleisexpectedtocompletewithinoneyear.IftherelevantregulationsrequiretheapprovalfromtherelevantpowerorganisationsorsupervisiondepartmentsoftheCompanybeforetheycanbesold,theapprovalhasbeenobtained.WhentheCompanyacquiresanon-currentasset(ordisposalgroup)exclusivelywithaviewtoitssubsequentdisposal,itshallclassifythenon-currentasset(ordisposalgroup)asheldforsaleattheacquisitiondateonlyiftheone-yearrequirementismetanditishighlyprobablethatanyothercriteriathatarenotmetatthatdatewillbemetwithinashortperiodfollowingtheacquisition(usuallywithinthreemonths).TheCompanythatiscommittedtodisposeitsequityinvestmentinasubsidiarywhichwillleadtoitslossofcontrolofthesubsidiaryshallclassifytheinvestmentasheldforsaleintheseparatefinancialstatementsoftheCompany,andclassifyalltheassetsandliabilitiesofthatsubsidiaryasheldforsaleintheconsolidatedfinancialstatementsofthegroup,whentheabovecriteriaaremet,regardlessofwhethertheCompanywillremainpartofequityinvestmentinthesubsidiary.(b)Measurementofnon-currentassets(ordisposalgroups)heldforsaleTheprincipalofmeasurementofnon-currentassets(ordisposalgroups)heldforsaledoesnotapplytothefollowingassets:
investmentpropertiesthataremeasuredinaccordancewiththefairvaluemodel,biologicalassetsthataremeasuredatfairvaluelesscoststosell,assetsarisingfromemployeebenefits,deferredtaxassets,financialassetswithinthescopeofrelevantaccountingstandardsrelatedtofinancialinstrumentsandcontractualrightsunderinsurancecontractsasdefinedinaccountingstandardsrelatedtoinsurancecontracts.Whenthenon-currentassets(ordisposalgroups)asheldforsaleareinitiallymeasuredorsubsequentlymeasuredatbalancesheet
date,ifthecarryingamountoftheasset(ordisposalgroup)ishigherthanthefairvaluelesscosttosell,itshallbewritten-downtoitsfairvaluelesscosttosell,andthedifferenceshallberecognizedasimpairmentlossintocurrentprofitorloss,andprovisionforassetimpairmentshallberecognizedsimultaneously.Atsubsequentreportingdate,ifthereisanyincreaseinfairvaluelesscoststosellofanon-currentasset(ordisposalgroup),theimpairmentlossrecognizedinpreviouslyshallbereversedtotheextentofimpairmentlossrecognizedaftertheassethasbeenclassifiedasheld-for-saleandincludedinprofitorloss.Animpairmentlossrecognizedforgoodwillshallnotbereversedinasubsequentperiod.Whentheassets(ordisposalgroups)ceasestobeclassifiedasheldforsaleorthenon-currentassetsareremovedfromdisposalgroupssincethecriteriaforheldforsalearenolongermet,theassetsshallbemeasuredatthelowerof:
(i)Itscarryingamountbeforetheasset(ordisposalgroup)wasclassifiedasheldforsale,adjustedforanydepreciation,amortizationorrevaluationsthatwouldhavebeenrecognizedhadtheasset(ordisposalgroup)notbeenclassifiedasheldforsale,and(ii)Itsrecoverableamount(c)PresentationAnentityshallpresentanon-currentassetclassifiedasheldforsaleandtheassetsofadisposalgroupclassifiedasheldforsaleseparatelyfromotherassetsinthestatementoffinancialposition.Theliabilitiesofadisposalgroupclassifiedasheldforsaleshallbepresentedseparatelyfromotherliabilitiesinthestatementoffinancialposition.Thoseassetsandliabilitiesshallnotbeoffsetandpresentedasasingleamount.
3.16Long-termEquityInvestments
Long-termequityinvestmentsrefertoequityinvestmentswhereaninvestorhascontrolof,orsignificantinfluenceover,aninvestee,aswellasequityinvestmentsinjointventures.AssociatesoftheCompanyarethoseentitiesoverwhichtheCompanyhassignificantinfluence.(a)DeterminationbasisofjointcontrolorsignificantinfluenceovertheinvesteeJointcontrolistherelevantagreedsharingofcontroloveranarrangement,andthearrangedrelevantactivitymustbedecidedunderunanimousconsentofthepartiessharingcontrol.InassessingwhethertheCompanyhasjointcontrolofanarrangement,theCompanyshallassessfirstwhetheralltheparties,oragroupoftheparties,controlthearrangement.Whenalltheparties,oragroupoftheparties,consideredcollectively,areabletodirecttheactivitiesofthearrangement,thepartiescontrolthearrangementcollectively.ThentheCompanyshallassesswhetherdecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiesthatcollectivelycontrolthearrangement.Iftwoormoregroupsofthepartiescouldcontrolthearrangementcollectively,itshallnotbeassessedashavejointcontrolofthearrangement.Whenassessingthejointcontrol,theprotectiverightsarenotconsidered.
Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontrolofthosepolicies.Indeterminationofsignificantinfluenceoveraninvestee,theCompanyshouldconsidernotonlytheexistingvotingrightsdirectlyorindirectlyheldbutalsotheeffectofpotentialvotingrightsheldbytheCompanyandotherentitiesthatcouldbecurrentlyexercisedorconverted,includingtheeffectofsharewarrants,shareoptionsandconvertiblecorporatebondsthatissuedbytheinvesteeandcouldbeconvertedincurrentperiod.IftheCompanyholds,directlyorindirectly20%ormorebutlessthan50%ofthevotingpoweroftheinvestee,itispresumedthattheCompanyhassignificantinfluenceoftheinvestee,unlessitcanbeclearlydemonstratedthatinsuchcircumstance,theCompanycannotparticipateinthedecision-makingintheproductionandoperatingoftheinvestee.(b)Determinationofinitialinvestmentcost(i)Long-termequityinvestmentsgeneratedinbusinesscombinationsForabusinesscombinationinvolvingenterprisesundercommoncontrol,iftheCompanymakespaymentincash,transfersnon-cashassetsorbearsliabilitiesastheconsiderationforthebusinesscombination,theshareofcarryingamountoftheowners’equityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyisrecognizedastheinitialcostofthelong-termequityinvestmentonthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofcashpaid,non-cashassetstransferredandliabilitiesassumedshallbeadjustedagainstthecapitalreserve;ifcapitalreserveisnotenoughtobeoffset,undistributedprofitshallbeoffsetinturn.Forabusinesscombinationinvolvingenterprisesundercommoncontrol,iftheCompanyissuesequitysecuritiesastheconsiderationforthebusinesscombination,theshareofcarryingamountoftheowners’equityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyisrecognizedastheinitialcostofthelong-termequityinvestmentonthecombinationdate.Thetotalparvalueofthesharesissuedisrecognizedasthesharecapital.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofthetotalparvalueofthesharesissuedshallbeadjustedagainstthecapitalreserve;ifcapitalreserveisnotenoughtobeoffset,undistributedprofitshallbeoffsetinturn.Forbusinesscombinationnotundercommoncontrol,theassetspaid,liabilitiesincurredorassumedandthefairvalueofequitysecuritiesissuedtoobtainthecontroloftheacquireeattheacquisitiondateshallbedeterminedasthecostofthebusinesscombinationandrecognizedastheinitialcostofthelong-termequityinvestment.Theaudit,legal,valuationandadvisoryfees,otherintermediaryfees,andotherrelevantgeneraladministrativecostsincurredforthebusinesscombination,shallberecognizedinprofitorlossasincurred.(ii)Long-termequityinvestmentsacquirednotthroughthebusinesscombination,theinvestmentcostshallbedeterminedbasedonthefollowingrequirements:
Forlong-termequityinvestmentsacquiredbypaymentsincash,theinitialcostistheactuallypaidpurchasecost,includingtheexpenses,taxesandothernecessaryexpendituresdirectlyrelatedtotheacquisitionoflong-termequityinvestments.Forlong-termequityinvestmentsacquiredthroughissuanceofequitysecurities,theinitialcostisthefairvalueoftheissuedequitysecurities.Forthelong-termequityinvestmentsobtainedthroughexchangeofnon-monetaryassets,iftheexchangehascommercialsubstance,andthefairvaluesofassetstradedoutandtradedincanbemeasuredreliably,theinitialcostoflong-termequityinvestmenttradedinwithnon-monetaryassetsaredeterminedbasedonthefairvaluesoftheassetstradedouttogetherwithrelevanttaxes.Differencebetweenfairvalueandbookvalueoftheassetstradedoutisrecordedincurrentprofitorloss.Iftheexchangeofnon-monetaryassetsdoesnotmeettheabovecriterion,thebookvalueoftheassetstradedoutandrelevanttaxesarerecognizedastheinitialinvestmentcost.Forlong-termequityinvestmentacquiredthroughdebtrestructuring,thebookvalueisdeterminedbasedonthefairvalueofwaiveddebtsandthetaxesandothercostsdirectlyattributabletotheassets.Differencebetweenfairvalueandcarryingamountofwaiveddebtsshallberecordedincurrentprofitorloss.(c)SubsequentmeasurementandrecognitionofprofitorlossLong-termequityinvestmenttoanentityoverwhichtheCompanyhasabilityofcontrolshallbeaccountedforatcostmethod.Long-termequityinvestmenttoajointventureoranassociateshallbeaccountedforatequitymethod.(i)CostmethodForLong-termequityinvestmentatcostmethod,costofthelong-termequityinvestmentshallbeadjustedwhenadditionalamountisinvestedorapartofitiswithdrawn.TheCompanyrecognizesitsshareofcashdividendsorprofitswhichhavebeendeclaredtodistributebytheinvesteeascurrentinvestmentincome.(ii)EquitymethodIftheinitialcostoftheinvestmentisinexcessoftheshareofthefairvalueofthenetidentifiableassetsintheinvesteeatthedateofinvestment,thedifferenceshallnotbeadjustedtotheinitialcostoflong-termequityinvestment;iftheinitialcostoftheinvestmentisinshortoftheshareofthefairvalueofthenetidentifiableassetsintheinvesteeatthedateinvestment,thedifferenceshallbeincludedinthecurrentprofitorlossandtheinitialcostofthelong-termequityinvestmentshallbeadjustedaccordingly.TheCompanyrecognizestheshareoftheinvestee’snetprofitsorlosses,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Thecarryingamountoftheinvestmentshallbereducedbytheshareofanyprofitorcashdividendsdeclaredtodistributebytheinvestee.Theinvestor’sshareoftheinvestee’sowners’equitychanges,otherthanthosearisingfromthe
investee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution,shallberecognizedintheinvestor’sequity,andthecarryingamountofthelong-termequityinvestmentshallbeadjustedaccordingly.TheCompanyrecognizesitsshareoftheinvestee’snetprofitsorlossesaftermakingappropriateadjustmentsofinvestee’snetprofitbasedonthefairvaluesoftheinvestee’sidentifiablenetassetsattheinvestmentdate.IftheaccountingpolicyandaccountingperiodadoptedbytheinvesteeisnotinconsistencywiththeCompany,thefinancialstatementsoftheinvesteeshallbeadjustedaccordingtotheCompany’saccountingpoliciesandaccountingperiod,basedonwhich,investmentincomeorlossandothercomprehensiveincome,etc.,shallbeadjusted.Theunrealizedprofitsorlossesresultingfrominter-CompanytransactionsbetweentheCompanyanditsassociateorjointventureareeliminatedinproportiontotheCompany’sequityinterestintheinvestee,basedonwhichinvestmentincomeorlossesshallberecognized.Anylossesresultingfrominter-Companytransactionsbetweentheinvestorandtheinvestee,whichbelongtoassetimpairment,shallberecognizedinfull.WheretheCompanyobtainsthepowerofjointcontrolorsignificantinfluence,butnotcontrol,overtheinvestee,duetoadditionalinvestmentorotherreason,therelevantlong-termequityinvestmentshallbeaccountedforbyusingtheequitymethod,initialcostofwhichshallbethefairvalueoftheoriginalinvestmentplustheadditionalinvestment.Wheretheoriginalinvestmentisclassifiedasavailable-forsaleinvestment,differencebetweenitsfairvalueandthecarryingvalue,inadditiontothecumulativechangesinfairvaluepreviouslyrecordedinothercomprehensiveincome,shallberecogisedintocurrentprofitorlossusingequitymethod.IftheCompanylosesthejointcontrolorsignificantinfluenceoftheinvesteeforsomereasonssuchasdisposalofequityinvestment,theretainedinterestshallbemeasuredatfairvalueandthedifferencebetweenthecarryingamountandthefairvalueatthedateoflossthejointcontrolorsignificantinfluenceshallberecognizedinprofitorloss.WhentheCompanydiscontinuestheuseoftheequitymethod,theCompanyshallaccountforallamountspreviouslyrecognizedinothercomprehensiveincomeunderequitymethodinrelationtothatinvestmentonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.(d)EquityinvestmentclassifiedasheldforsaleForanequityinvestment,oraportionofanequityinvestment,inanassociateorajointventureisclassifiedasheldforsale,therelevantaccountingtreatmentpleaserefertoNote3.14.Anyretainedinterestintheequityinvestmentnotclassifiedasheldforsale,shallbeaccountedforusingequitymethod.Whenanequityinvestmentinanassociateorajointventurepreviouslyclassifiedasheldforsalenolongermeetsthecriteriatobesoclassified,itshallbeaccountedforusingtheequitymethodretrospectivelyasfromthedateofitsclassificationasheldforsale.Financialstatementsfortheperiodssinceclassificationasheldforsaleshallbeamendedaccordingly.
(e)ImpairmenttestingandprovisionforimpairmentlossForinvestmentinsubsidiaries,associatesorajointventures,provisionforimpairmentlosspleaserefertoNote3.22.
3.17InvestmentProperties(a)ClassificationofinvestmentpropertiesInvestmentpropertiesarepropertiestoearnrentalsorforcapitalappreciationorboth,including:
(i)Landuserightleasedout(ii)Landheldfortransferuponappreciation(iii)Buildingsleasedout
(b)Themeasurementmodelofinvestmentproperty
TheCompanyadoptsthecostmodelforsubsequentmeasurementofinvestmentproperties.ForprovisionforimpairmentpleaserefertoNote3.23.TheCompanycalculatesthedepreciationoramortizationbasedonthenetamountofinvestmentpropertycostlesstheaccumulatedimpairmentandthenetresidualvalueusingstraight-linemethod.Theestimatedusefullifeandannualdepreciationrateswhicharedeterminedaccordingtothecategories,estimatedeconomicusefullivesandestimatednetresidualratesarelistedasfollowings:
| Category | Estimatedusefullife(year) | Residualrates(%) | Annualdepreciationrates(%) |
| Buildingsandconstructions | 35-40 | 3 | 2.77-2.43 |
| Landuseright | 50 | — | 2.00 |
3.18FixedAssetsFixedassetsrefertothetangibleassetswithhigherunitpriceheldforthepurposeofproducingcommodities,renderingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.(a)Recognitioncriteriaoffixedassets
Fixedassetswillonlyberecognizedattheactualcostpaidwhenobtainingasallthefollowingcriteriaaresatisfied:
(i)ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;(ii)Thecostsofthefixedassetscanbemeasuredreliably.Subsequentexpenditureforfixedassetsshallberecordedincostoffixedassets,ifrecognition
criteriaoffixedassetsaresatisfied,otherwisetheexpenditureshallberecordedincurrentprofitorlosswhenincurred.(b)DepreciationmethodsoffixedassetsTheCompanybeginstodepreciatethefixedassetfromthenextmonthafteritisavailableforintendeduseusingthestraight-line-method.Theestimatedusefullifeandannualdepreciationrateswhicharedeterminedaccordingtothecategories,estimatedeconomicusefullivesandestimatednetresidualratesoffixedassetsarelistedasfollowings:
| Categories | Depreciationmethod | Usefullife(years) | Estimatedresidualvalueproportion(%) | Annualdepreciationrate(%) |
| Buildingsandstructures | Straight-linemethod | 10,35-40 | 0、3 | 2.43-2.77,10.00 |
| Decorationfeesforself-ownedhouses | Straight-linemethod | 10 | 0 | 10.00 |
| Machinery | Straight-linemethod | 12 | 3 | 8.08 |
| Transportfacilities | Straight-linemethod | 7 | 3 | 13.86 |
| Electronicequipment | Straight-linemethod | 5-7 | 3 | 13.86-19.40 |
| Officeandotherequipment | Straight-linemethod | 7 | 3 | 13.86 |
Forthefixedassetswithimpairmentprovided,theimpairmentprovisionshouldbeexcludedfromthecostwhencalculatingdepreciation.Attheendofreportingperiod,theCompanyshallreviewtheusefullife,estimatednetresidualvalueanddepreciationmethodofthefixedassets.Estimatedusefullifeofthefixedassetsshallbeadjustedifitischangedcomparedtotheoriginalestimation.(c)Recognitioncriteria,valuationanddepreciationmethodsoffixedassetsobtainedthroughafinanceleaseIftheentireriskandrewardsrelatedtotheleasedassetshavebeensubstantiallytransferred,theCompanyshallrecognizetheleaseasafinancelease.Thecostofthefixedassetsobtainedthroughafinanceleaseisdeterminedatthelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumleasepaymentonthedateofthelease.Thefixedassetsobtainedbyafinanceleasearedepreciatedinthemethodwhichisconsistentwiththeself-ownedfixedassetsoftheCompany.
Forfixedassetsobtainedthroughafinancelease,ifitisreasonablycertainthattheownershipoftheleasedassetswillbetransferredtothelesseebytheendoftheleaseterm,theyshallbedepreciatedovertheirremainingusefullives;otherwise,theleasedassetsshallbedepreciatedovertheshorteroftheleasetermsortheirremainingusefullives.
3.19ConstructioninProgress(a)Classificationofconstructioninprogress
Constructioninprogressismeasuredonanindividualprojectbasis.(b)Recognitioncriteriaandtimingoftransferfromconstructioninprogresstofixedassets
Theinitialbookvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforetheyarereadyfortheirintendeduse,includingconstructioncosts,originalpriceofmachineryequipment,othernecessaryexpensesincurredtobringtheconstructioninprogresstogetreadyforitsintendeduseandborrowingcostsofthespecificloanfortheconstructionortheproportionofthegeneralloanusedfortheconstructionsincurredbeforetheyarereadyfortheirintendeduse.Theconstructioninprogressshallbetransferredtofixedassetwhentheinstallationorconstructionisreadyfortheintendeduse.Forconstructioninprogressthathasbeenreadyfortheirintendedusebutrelevantbudgetsforthecompletionofprojectshavenotbeencompleted,theestimatedvaluesofprojectbudgets,prices,oractualcostsshouldbeincludedinthecostsofrelevantfixedassets,anddepreciationshouldbeprovidedaccordingtorelevantpoliciesoftheCompanywhenthefixedassetsarereadyforintendeduse.Afterthecompletionofbudgetsneededforthecompletionofprojects,theestimatedvaluesshouldbesubstitutedbyactualcosts,butdepreciationalreadyprovidedisnotadjusted.
3.20BorrowingCosts
(a)Recognitioncriteriaandperiodforcapitalizationofborrowingcosts
TheCompanyshallcapitalizetheborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetswhenmeetthefollowingconditions:
(i)Expendituresfortheassetarebeingincurred;(ii)Borrowingcostsarebeingincurred,and;(iii)Acquisition,constructionorproductionactivitiesthatarenecessarytopreparetheassetsfortheirintendeduseorsaleareinprogress.
Otherborrowingcost,discountsorpremiumsonborrowingsandexchangedifferencesonforeigncurrencyborrowingsshallberecognizedintocurrentprofitorlosswhenincurred.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandtheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationofsuchborrowingcostsceaseswhenthequalifyingassetsbeingacquired,constructedorproducedbecomereadyfortheirintendeduseorsale.Theexpenditureincurredsubsequentlyshallberecognizedasexpenseswhenincurred.(b)CapitalizationrateandmeasurementofcapitalizedamountsofborrowingcostsWhenfundsareborrowedspecificallyforpurchase,constructionormanufacturingofassetseligibleforcapitalization,theCompanyshalldeterminetheamountofborrowingcostseligibleforcapitalizationastheactualborrowingcostsincurredonthatborrowingduringtheperiodlessanyinterestincomeonbankdepositorinvestmentincomeonthetemporaryinvestmentofthoseborrowings.Wherefundsallocatedforpurchase,constructionormanufacturingofassetseligibleforcapitalizationarepartofageneralborrowing,theeligibleamountsaredeterminedbytheweighted-averageofthecumulativecapitalexpendituresinexcessofthespecificborrowingmultipliedbythegeneralborrowingcapitalizationrate.Thecapitalizationratewillbetheweightedaverageoftheborrowingcostsapplicabletothegeneralborrowing.
3.21ImpairmentofLong-TermAssetsImpairmentlossoflong-termequityinvestmentinsubsidiaries,associatesandjointventures,investmentproperties,fixedassetsandconstructionsinprogresssubsequentlymeasuredatcost,productivebiologicalassets,intangibleassets,goodwill,therightsandinterestsofprovedminingareasofpetroleumandnaturalgasandwellsandotherrelevantfacilitiesmeasuredatcost(excludinginventories,investmentpropertiesmeasuredatfairvalue,deferredtaxassets,financialassets),shallbedeterminedaccordingtofollowingmethod:
TheCompanyshallassessattheendofeachreportingperiodwhetherthereisanyindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,theCompanyshallestimatetherecoverableamountoftheassetandtestforimpairment.Irrespectiveofwhetherthereisanyindicationofimpairment,theCompanyshalltestforimpairmentofgoodwillacquiredinabusinesscombination,intangibleassetswithanindefiniteusefullifeorintangibleassetsnotyetavailableforuseannually.
Therecoverableamountsofthelong-termassetsarethehigheroftheirfairvalueslesscoststodisposeandthepresentvaluesoftheestimatedfuturecashflowsofthelong-termassets.TheCompanyestimatetherecoverableamountsonanindividualbasis.Ifitisdifficulttoestimatetherecoverableamountoftheindividualasset,theCompanyestimatestherecoverableamountofthegroupsofassetsthattheindividualassetbelongsto.Identificationofangroupofassetisbasedonwhetherthecashinflowsfromitarelargelyindependentofthecashinflowsfromotherassetsorgroupsofassets.If,andonlyif,therecoverableamountofanassetoragroupofassetsislessthanitscarryingamount,thecarryingamountoftheassetshallbereducedtoitsrecoverableamountandtheprovisionforimpairmentlossshallberecognizedaccordingly.Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationshall,fromtheacquisitiondate,beallocatedtorelevantgroupofassetsbasedonreasonablemethod;ifitisdifficulttoallocatetorelevantgroupofassets,goodwillshallbeallocatedtorelevantcombinationofassetgroups.TherelevantgroupofassetsorcombinationofassetgroupsisagroupofassetsorcombinationofassetgroupsthatisbenefitfromthesynergiesofthebusinesscombinationandisnotlargerthanthereportingsegmentdeterminedbytheCompany.Whentestforimpairment,ifthereisanindicationthatrelevantgroupofassetsorcombinationofassetgroupsmaybeimpaired,impairmenttestingforgroupofassetsorcombinationofassetgroupsexcludinggoodwillshallbeconductedfirst,andcalculatetherecoverableamountandrecognizetheimpairmentloss.Thenthegroupofassetsorcombinationofassetgroupsincludinggoodwillshallbetestedforimpairment,bycomparingthecarryingamountwithitsrecoverableamount.Iftherecoverableamountislessthanthecarryingamount,theCompanyshallrecognizetheimpairmentloss.Thementionedimpairmentlosswillnotbereversedinsubsequentaccountingperiodonceithadbeenrecognized.
3.22IntangibleAssets(a)Measurementmethodofintangibleassets
Intangibleassetsarerecognizedatactualcostatacquisition.(b)Theusefullifeandamortizationofintangibleassets
(i)Theestimatedusefullivesoftheintangibleassetswithfiniteusefullivesareasfollows:
| Category | Estimatedusefullife | Basis |
| Landuseright | 50years | Legallife |
| Software | 5years | TheservicelifeisdeterminedbyreferencetotheperiodthatcanbringeconomicbenefitstotheCompany |
| Royalties | 10years | TheservicelifeisdeterminedbyreferencetotheperiodthatcanbringeconomicbenefitstotheCompany |
Forintangibleassetswithfiniteusefullife,theestimatedusefullifeandamortizationmethodarereviewedannuallyattheendofeachreportingperiodandadjustedwhennecessary.Nochangeincursincurrentyearintheestimatedusefullifeandamortizationmethoduponreview.(ii)AssetsofwhichtheperiodtobringeconomicbenefitstotheCompanyareunforeseeableareregardedasintangibleassetswithindefiniteusefullives.TheCompanyreassessestheusefullivesofthoseassetsateveryyearend.Iftheusefullivesofthoseassetsarestillindefinite,impairmenttestshouldbeperformedonthoseassetsatthebalancesheetdate.(iii)AmortizationoftheintangibleassetsForintangibleassetswithfiniteusefullives,theirusefullivesshouldbedeterminedupontheiracquisitionandsystematicallyamortizedonastraight-linebasis[unitsofproductionmethod]overtheusefullife.Theamortizationamountshallberecognizedintocurrentprofitorlossaccordingtothebeneficialitems.Theamounttobeamortizediscostdeductingresidualvalue.Forintangibleassetswhichhasimpaired,thecumulativeimpairmentprovisionshallbedeductedaswell.Theresidualvalueofanintangibleassetwithafiniteusefullifeshallbeassumedtobezerounless:thereisacommitmentbyathirdpartytopurchasetheassetattheendofitsusefullife;orthereisanactivemarketfortheassetandresidualvaluecanbedeterminedbyreferencetothatmarket;anditisprobablethatsuchamarketwillexistattheendoftheasset’susefullife.Intangibleassetswithindefiniteusefullivesshallnotbeamortized.TheCompanyreassessestheusefullivesofthoseassetsateveryyearend.Ifthereisevidencetoindicatethattheusefullivesofthoseassetsbecomefinite,theusefullivesshallbeestimatedandtheintangibleassetsshallbeamortizedsystematicallyandreasonablywithintheestimatedusefullives.
3.23Long-termDeferredExpenses
Long-termdeferredexpensesarevariousexpensesalreadyincurred,whichshallbeamortizedovercurrentandsubsequentperiodswiththeamortizationperiodexceedingoneyear.Long-termdeferredexpensesareevenlyamortizedwithinitsbeneficiaryperiodorstipulatedperiod.
3.24EmployeeBenefitsEmployeebenefitsrefertoallformsofconsiderationorcompensationgivenbytheCompanyinexchangeforservicerenderedbyemployeesorfortheterminationofemploymentrelationship.Employeebenefitsincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.Benefitsprovidedtoanemployee'sspouse,children,dependents,familymembersofdecreasedemployees,orotherbeneficiariesarealsoemployeebenefits.Accordingtoliquidity,employeebenefitsarepresentedinthestatementoffinancialpositionas“Employeebenefitspayable”and“Long-termemployeebenefitspayable”.
(a)Short-termemployeebenefits(i)Employeebasicsalary(salary,bonus,allowance,subsidy)TheCompanyrecognizes,intheaccountingperiodinwhichanemployeeprovidesservice,actuallyoccurredshort-termemployeebenefitsasaliability,withacorrespondingchargetocurrentprofitexceptforthoserecognizedascapitalexpenditurebasedontherequirementofaccountingstandards.(ii)EmployeewelfareTheCompanyshallrecognizetheemployeewelfarebasedonactualamountwhenincurredintocurrentprofitorlossorrelatedcapitalexpenditure.Employeewelfareshallbemeasuredatfairvalueasitisanon-monetarybenefits.(iii)Socialinsurancesuchasmedicalinsurance,workinjuryinsuranceandmaternityinsurance,housingfunds,laborunionfundandemployeeeducationfundPaymentsmadebytheCompanyofsocialinsuranceforemployees,suchasmedicalinsurance,workinjuryinsuranceandmaternityinsurance,paymentsofhousingfunds,andlaborunionfundandemployeeeducationfundaccruedinaccordancewithrelevantrequirements,intheaccountingperiodinwhichemployeesprovideservices,iscalculatedaccordingtorequiredaccrualbasesandaccrualratioindeterminingtheamountofemployeebenefitsandtherelatedliabilities,whichshallberecognizedincurrentprofitorlossorthecostofrelevantasset.(iv)Short-termpaidabsences
TheCompanyshallrecognizetherelatedemployeebenefitsarisingfromaccumulatingpaidabsenceswhentheemployeesrenderservicethatincreasestheirentitlementtofuturepaidabsences.Theadditionalpayableamountsshallbemeasuredattheexpectedadditionalpaymentsasaresultoftheunusedentitlementthathasaccumulated.TheCompanyshallrecognizerelevantemployeebenefitofnon-accumulatingpaidabsenceswhentheabsencesactuallyoccurred.(v)Short-termprofit-sharingplanTheCompanyshallrecognizetherelatedemployeebenefitspayableunderaprofit-sharingplanwhenallofthefollowingconditionsaresatisfied:
(i)TheCompanyhasapresentlegalorconstructiveobligationtomakesuchpaymentsasaresultofpastevents;and(ii)Areliableestimateoftheamountsofemployeebenefitsobligationarisingfromtheprofit-sharingplancanbemade.(b)Post-employmentbenefits(i)DefinedcontributionplansTheCompanyshallrecognize,intheaccountingperiodinwhichanemployeeprovidesservice,thecontributionpayabletoadefinedcontributionplanasaliability,withacorrespondingchargetothecurrentprofitorlossorthecostofarelevantasset.Whencontributionstoadefinedcontributionplanarenotexpectedtobesettledwhollybeforetwelvemonthsaftertheendoftheannualreportingperiodinwhichtheemployeesrendertherelatedservice,theyshallbediscountedusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbondswiththecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedcontributionobligations)tomeasureemployeebenefitspayable.(ii)DefinedbenefitplanA.ThepresentvalueofdefinedbenefitobligationandcurrentservicecostsBasedontheexpectedaccumulativewelfareunitmethod,theCompanyshallmakeestimatesaboutdemographicvariablesandfinancialvariablesinadoptingtheunbiasedandconsistentactuarialassumptionsandmeasuredefinedbenefitobligation,anddeterminetheobligationperiod.TheCompanyshalldiscounttheobligationarisingfromdefinedbenefitplanusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbondswiththecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedbenefitobligations)inordertodeterminethepresentvalueofthedefinedbenefitobligationandthecurrentservicecost.B.ThenetdefinedbenefitliabilityorassetThenetdefinedbenefitliability(asset)isthedeficitorsurplusrecognizedasthepresentvalueofthedefinedbenefitobligationless
thefairvalueofplanassets(ifany).WhentheCompanyhasasurplusinadefinedbenefitplan,itshallmeasurethenetdefinedbenefitassetatthelowerofthesurplusinthedefinedbenefitplanandtheassetceiling.C.TheamountrecognizedinthecostofassetorcurrentprofitorlossServicecostcomprisescurrentservicecost,pastservicecostandanygainorlossonsettlement.Otherservicecostshallberecognizedinprofitorlossunlessaccountingstandardsrequireorallowtheinclusionofcurrentservicecostwithinthecostofassets.Netinterestonthenetdefinedbenefitliability(asset)comprisinginterestincomeonplanassets,interestcostonthedefinedbenefitobligationandinterestontheeffectoftheassetceiling,shallbeincludedinprofitorloss.D.TheamountrecognizedinothercomprehensiveincomeChangesinthenetliabilityorassetofthedefinedbenefitplanresultingfromtheremeasurementsincluding:
?Actuarialgainsandlosses,thechangesinthepresentvalueofthedefinedbenefitobligationresultingfromexperienceadjustmentsortheeffectsofchangesinactuarialassumptions;
?Returnonplanassets,excludingamountsincludedinnetinterestonthenetdefinedbenefitliabilityorasset;?Anychangeintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset).Remeasurementsofthenetdefinedbenefitliability(asset)recognizedinothercomprehensiveincomeshallnotbereclassifiedtoprofitorlossinasubsequentperiod.However,theCompanymaytransferthoseamountsrecognizedinothercomprehensiveincomewithinequity.(c)TerminationbenefitsTheCompanyprovidingterminationbenefitstoemployeesshallrecognizeanemployeebenefitsliabilityforterminationbenefits,withacorrespondingchargetotheprofitorlossofthereportingperiod,attheearlierofthefollowingdates:
(i)WhentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal.(ii)WhentheCompanyrecognizescostsorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.Iftheterminationbenefitsarenotexpectedtobesettledwhollybeforetwelvemonthsaftertheendoftheannualreportingperiod,theCompanyshalldiscounttheterminationbenefitsusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbondswiththecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedbenefitobligations)tomeasuretheemployeebenefits.
(d)Otherlong-termemployeebenefits(i)MeettheconditionsofthedefinedcontributionplanWhenotherlong-termemployeebenefitsprovidedbytheCompanytotheemployeessatisfiestheconditionsforclassifyingasadefinedcontributionplan,allthosebenefitspayableshallbeaccountedforasemployeebenefitspayableattheirdiscountedvalue.(ii)MeettheconditionsofthedefinedbenefitplanAttheendofthereportingperiod,theCompanyrecognizedthecostofemployeebenefitfromotherlong-termemployeebenefitsasthefollowingcomponents:
?Servicecosts;?Netinterestcostfornetliabilityorassetofotherlong-termemployeebenefits?Changesresultingfromtheremeasurementsofthenetliabilityorassetofotherlong-termemployeebenefitsInordertosimplifytheaccountingtreatment,thenetamountofaboveitemsshallberecognizedinprofitorlossorrelevantcostofassets.
3.25EstimatedLiabilities
(a)RecognitioncriteriaofestimatedliabilitiesTheCompanyrecognizestheestimatedliabilitieswhenobligationsrelatedtocontingenciessatisfyallthefollowingconditions:
(i)ThatobligationisacurrentobligationoftheCompany;(ii)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;and(iii)Theamountoftheobligationcanbemeasuredreliably.(b)MeasurementmethodofestimatedliabilitiesTheestimatedliabilitiesoftheCompanyareinitiallymeasuredatthebestestimateofexpensesrequiredfortheperformanceofrelevantpresentobligations.TheCompany,whendeterminingthebestestimate,hashadacomprehensiveconsiderationofriskswithrespecttocontingencies,uncertaintiesandthetimevalueofmoney.Thecarryingamountoftheestimatedliabilitiesshallbereviewedattheendofeveryreportingperiod.Ifconclusiveevidencesindicatethatthecarryingamountfailstobethebestestimateoftheestimatedliabilities,thecarryingamountshallbeadjustedbasedontheupdatedbestestimate.
3.26Revenue
(a)Revenuerecognitionprinciples
Atcontractinception,theCompanyshallassessthecontractsandshallidentifyeachperformanceobligationinthecontracts,anddeterminewhethertheperformanceobligationshouldbesatisfiedovertimeoratapointintime.TheCompanysatisfiesaperformanceobligationovertimeifoneofthefollowingcriteriaismet,otherwise,theperformanceobligationissatisfiedatapointintime:
(1)thecustomersimultaneouslyreceivesandconsumestheeconomicbenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;
(2)thecustomercancontrolgoodsastheyarecreatedbytheCompany’sperformance;
(3)goodscreatedduringtheCompany’sperformancehaveirreplaceableusesandtheCompanyhasanenforceablerighttoreceivethepaymentsforperformancecompletedtodateduringthewholecontractperiod.Foreachperformanceobligationsatisfiedovertime,theCompanyshallrecognizerevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation.Inthecircumstancethattheprogresscannotbemeasuredreasonably,butthecostsincurredinsatisfyingtheperformanceobligationareexpectedtoberecovered,theCompanyshallrecognizerevenueonlytotheextentofthecostsincurreduntilitcanreasonablymeasuretheprogress.Foreachperformanceobligationsatisfiedatapointintime,theCompanyshallrecognizerevenueatthetimepointthattheclientobtainscontrolofrelevantgoodsorservices.Todeterminewhetherthecustomerhasobtainedcontrolofgoods,theCompanyshallconsiderthefollowingindications:
(1)theCompanyhasapresentrighttopaymentforthegoods,i.e.,thecustomerispresentlyobligedtopayforthegoods;
(2)theCompanyhastransferredthelegaltitleofthegoodstothecustomer,i.e.,thecustomerhaslegaltitletothegoods;
(3)theCompanyhastransferredphysicalpossessionofthegoodstotheclient,i.e.,thecustomerhasphysicallypossessedthegoods;
(4)theCompanyhastransferredsignificantrisksandrewardsofownershipofthegoodstotheclient,i.e.,thecustomerhasobtainedsignificantrisksandrewardsofownershipofthegoods;
(5)thecustomerhasacceptedthegoods;
(6)otherevidenceindicatingthecustomerhasobtainedcontroloverthegoods.SalesreturnclauseForthesaleswithreturnclauses,whenthecustomerobtainsthecontrolrightoftherelevantgoods,thecompanyshallrecognizetherevenueaccordingtotheamountofconsiderationitisentitledtoobtainduetothetransferofthegoodstothecustomer,andrecognizetheamountexpectedtobereturnedduetothesalesreturnastheestimatedliability;atthesametime,thecompanyshalldeducttheestimatedcostofrecoveringthegoodsaccordingtothebookvalueoftheexpectedreturnedgoodsatthetimeoftransfer.Thebalanceafterdeductingthevalueofthereturnedgoodsisrecognizedasanasset,thatis,thecostofreturnreceivable,whichiscarriedforwardbydeductingthenetcostoftheaboveassetsaccordingtothebookvalueofthetransferredgoodsatthetimeoftransfer.Oneachbalancesheetdate,theCompanyreestimatesthereturnoffuturesalesandremeasurestheaboveassetsandliabilities.WarrantyobligationsAccordingtothecontractandlegalprovisions,thecompanyprovidesqualityassuranceforthegoodssoldandtheprojectsconstructed.Fortheguaranteequalityassurancetoensurethatthegoodssoldmeettheestablishedstandards,thecompanyconductsaccountingtreatmentinaccordancewiththe“AccountingStandardsforBusinessEnterprisesNo.13–Contingencies”.Fortheservicequalityassurancewhichprovidesaseparateserviceinadditiontoguaranteeingthatthegoodssoldmeettheestablishedstandards,thecompanytakesitasasingleperformanceobligation,allocatespartofthetransactionpricetotheservicequalityassuranceaccordingtotherelativeproportionoftheseparatesellingpriceofthegoodsandservicequalityassurance,andrecognizestherevenuewhenthecustomerobtainstheservicecontrolright.Whenevaluatingwhetherthequalityassuranceprovidesaseparateserviceinadditiontoassuringcustomersthatthegoodssoldmeettheestablishedstandards,thecompanyconsiderswhetherthequalityassuranceisastatutoryrequirement,thequalityassuranceperiod,andthenatureofthecompany'scommitmenttoperformthetask.PrincipalresponsiblepersonandagentThecompanyhastherighttodeterminethepriceofthetradedgoodsafterobtainingthecontrolrightofthetradinggoodsfromthethirdpartyandthentransferringittothecustomer,thatis,thecompanycancontrolthegoodsbeforetransferringthetradinggoodstothecustomer.Therefore,the
companyisthemainresponsiblepersonandrecognizestheincomeaccordingtothetotalconsiderationreceivedorreceivable.Otherwise,thecompany,astheagent,shallrecognizetheincomeaccordingtotheamountofcommissionorservicechargethatitisexpectedtobeentitledtoreceive,whichshallbedeterminedaccordingtothenetamountofthetotalconsiderationreceivedorreceivableafterdeductingthepricepayabletootherrelevantparties,oraccordingtotheestablishedCommissionamountorproportion.CustomerconsiderationpayableIfthereisconsiderationpayabletothecustomerinthecontract,unlesstheconsiderationistoobtainotherclearlydistinguishablegoodsorservicesfromthecustomer,thecompanywilloffsetthetransactionpricewiththeconsiderationpayable,andoffsetthecurrentincomeatthelatertimeofconfirmingtherelevantincomeorpaying(orpromisingtopay)thecustomer'sconsideration.ContractualrightsnotexercisedbycustomersIfthecompanyadvancessalesofgoodsorservicestocustomers,theamountshallberecognizedasliabilitiesfirst,andthenconvertedintoincomewhenrelevantperformanceobligationsarefulfilled.Whenthecompanydoesnotneedtoreturntheadvancepaymentandthecustomermaygiveupallorpartofthecontractrights,ifthecompanyexpectstohavetherighttoobtaintheamountrelatedtothecontractrightsgivenupbythecustomer,theaboveamountshallberecognizedasincomeinproportionaccordingtothemodeofthecustomerexercisingthecontractrights;otherwise,thecompanyonlyhastheverylowpossibilityofthecustomerrequiringtoperformtheremainingperformanceobligationsTherelevantbalanceoftheaboveliabilitiesisconvertedintoincome.
(b)RevenuerecognitionmethodadoptedbytheCompany(i)GoodssalescontractThesalescontractbetweenthecompanyandthecustomerincludestheperformanceobligationoftransferringthegoods,whichbelongstotheperformanceobligationatacertaintimepoint.Therecognitionofautomobilesalesrevenueandjewelrywholesalerevenueshallmeetthefollowingconditions:thecompanyhasdeliveredthegoodstothecustomeraccordingtothecontract,thecustomerhasacceptedthegoods,thepaymentforgoodshasbeencollectedorthereceipthasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin,themainrisksandrewardsoftheownershipofthegoodshavebeentransferred,andthelegalownershipofthegoodshasbeentransferred.
(ii)AutomaintenanceandtestingcontractTheperformanceobligationsincludedintheautomobilemaintenanceandtestingcontractbetweenthecompanyanditscustomersbelongtotheperformanceobligationsatacertaintimepoint.ThefollowingconditionsshallbemetfortherecognitionofautomobilemaintenanceandtestingRevenue:thecompanyhascompletedautomobilemaintenanceandtestingservicesaccordingtothecontract,settledallmaterialsandworkinghoursexpenseswithcustomers,andallowedcustomers'vehiclestoleavethecompany'smaintenanceplant.(iii)ServicecontractTheservicecontractbetweenthecompanyandthecustomerincludestheperformanceobligationoftheservicerelatedtotherentalrealestate.Asthecompany'sperformanceatthesametime,thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformance,thecompanytakesitastheperformanceobligationwithinacertainperiodoftime,andallocatesitequallyduringtheserviceprovisionperiod.(iv)RealestateleasecontractPleaserefertoNote3.29LEASESfortherevenuerecognitionmethodforrealestateleasecontract.
3.27GovernmentGrants(a)RecognitionofgovernmentgrantsAgovernmentgrantshallnotberecgoniseduntilthereisreasonableassurancethat:
(i)TheCompanywillcomplywiththeconditionsattachingtothem;and(ii)Thegrantswillbereceived.(b)MeasurementofgovernmentgrantsMonetarygrantsfromthegovernmentshallbemeasuredatamountreceivedorreceivable,andnon-monetarygrantsfromthegovernmentshallbemeasuredattheirfairvalueoratanominalvalueofCNY1.00whenreliablefairvalueisnotavailable.(c)Accountingforgovernmentgrants(i)GovernmentgrantsrelatedtoassetsGovernmentgrantspertinenttoassetsmeanthegovernmentgrantsthatareobtainedbytheCompanyusedforpurchaseorconstruction,orformingthelong-termassetsbyotherways.Governmentgrantspertinenttoassetsshallberecognizedasdeferredincome,andshouldberecognizedinprofitorlossonasystematicbasisovertheusefullivesoftherelevantassets.Grantsmeasuredattheirnominalvalueshallbedirectlyrecognizedinprofitorlossoftheperiodwhenthegrantsarereceived.Whentherelevantassetsaresold,transferred,writtenoffordamagedbeforetheassetsareterminated,theremainingdeferredincomeshallbe
transferredintoprofitorlossoftheperiodofdisposingrelevantassets.(ii)GovernmentgrantsrelatedtoincomeGovernmentgrantsotherthanrelatedtoassetsareclassifiedasgovernmentgrantsrelatedtoincome.Governmentgrantsrelatedtoincomeareaccountedforinaccordancewiththefollowingprinciples:
Ifthegovernmentgrantsrelatedtoincomeareusedtocompensatetheenterprise’srelevantexpensesorlossesinfutureperiods,suchgovernmentgrantsshallberecognizedasdeferredincomeandincludedintoprofitorloss(orwritedownrelatedexpenses)inthesameperiodastherelevantexpensesorlossesarerecognized;Ifthegovernmentgrantsrelatedtoincomeareusedtocompensatetheenterprise’srelevantexpensesorlossesincurred,suchgovernmentgrantsaredirectlyrecognizedintocurrentprofitorloss(orwritedownrelatedexpenses).Forgovernmentgrantscomprisedofpartrelatedtoassetsaswellaspartrelatedtoincome,eachpartisaccountedforseparately;ifitisdifficulttoidentifydifferentpart,thegovernmentgrantsareaccountedforasgovernmentgrantsrelatedtoincomeasawhole.Governmentgrantsrelatedtodailyoperationactivitiesarerecognizedinotherincome(orwritedownrelatedexpenses)inaccordancewiththenatureoftheactivities,andgovernmentgrantsirrelevanttodailyoperationactivitiesarerecognizedinnon-operatingincome.(iii)RepaymentofthegovernmentgrantsRepaymentofthegovernmentgrantsshallberecordedbyincreasingthecarryingamountoftheassetifthebookvalueoftheassethasbeenwrittendown,orreducingthebalanceofrelevantdeferredincomeifdeferredincomebalanceexists,anyexcesswillberecognizedintocurrentprofitorloss;ordirectlyrecognizedintocurrentprofitorlossforothercircumstances.
3.28DeferredTaxAssetsandDeferredTaxLiabilities
Temporarydifferencesaredifferencesbetweenthecarryingamountofanassetorliabilityinthestatementoffinancialpositionanditstaxbaseatthebalancesheetdate.TheCompanyrecognizeandmeasuretheeffectoftaxabletemporarydifferencesanddeductibletemporarydifferencesonincometaxasdeferredtaxliabilitiesordeferredtaxassetsusingliabilitymethod.Deferredtaxassetsanddeferredtaxliabilitiesshallnotbediscounted.(a)RecognitionofdeferredtaxassetsDeferredtaxassetsshouldberecognizedfordeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandthecarryforwardofunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandthecarryforwardofunusedtaxcreditscanbeutilisedatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealised,unlessthedeferredtaxassetarisesfromtheinitialrecognitionofan
assetorliabilityinatransactionthat:
(i)Isnotabusinesscombination;and(ii)Atthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss)TheCompanyshallrecognizeadeferredtaxassetforalldeductibletemporarydifferencesarisingfrominvestmentsinsubsidiaries,associatesandjointventures,onlytotheextentthat,itisprobablethat:
(i)Thetemporarydifferencewillreverseintheforeseeablefuture;and(ii)Taxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilised.Attheendofeachreportingperiod,ifthereissufficientevidencethatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyrecognizesapreviouslyunrecognizeddeferredtaxasset.Thecarryingamountofadeferredtaxassetshallbereviewedattheendofeachreportingperiod.TheCompanyshallreducethecarryingamountofadeferredtaxassettotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorallofthatdeferredtaxassettobeutilised.Anysuchreductionshallbereversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitwillbeavailable.(b)RecognitionofdeferredtaxliabilitiesAdeferredtaxliabilityshallberecognizedforalltaxabletemporarydifferencesatthetaxratethatareexpectedtoapplytotheperiodwhentheliabilityissettled.(i)Nodeferredtaxliabilityshallberecognizedfortaxabletemporarydifferencesarisingfrom:
?Theinitialrecognitionofgoodwill;or?Theinitialrecognitionofanassetorliabilityinatransactionwhich:isnotabusinesscombination;andatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss)(ii)Anentityshallrecognizeadeferredtaxliabilityforalltaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associates,andjointventures,excepttotheextentthatbothofthefollowingconditionsaresatisfied:
?TheCompanyisabletocontrolthetimingofthereversalofthetemporarydifference;and
?Itisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.(c)Recognitionofdeferredtaxliabilitiesorassetsinvolvedinspecialtransactionsorevents(i)DeferredtaxliabilitiesorassetsrelatedtobusinesscombinationForthetaxabletemporarydifferenceordeductibletemporarydifferencearisingfromabusinesscombinationnotundercommoncontrol,adeferredtaxliabilityoradeferredtaxassetshallberecognized,andsimultaneously,goodwillrecognizedinthebusiness
combinationshallbeadjustedbasedonrelevantdeferredtaxexpense(income).(ii)ItemsdirectlyrecognizedinequityCurrenttaxanddeferredtaxrelatedtoitemsthatarerecognizeddirectlyinequityshallberecognizedinequity.Suchitemsinclude:
othercomprehensiveincomegeneratedfromfairvaluefluctuationofavailableforsaleinvestments;anadjustmenttotheopeningbalanceofretainedearningsresultingfromeitherachangeinaccountingpolicythatisappliedretrospectivelyorthecorrectionofapriorperiod(significant)error;amountsarisingoninitialrecognitionoftheequitycomponentofacompoundfinancialinstrumentthatcontainsbothliabilityandequitycomponent.(iii)UnusedtaxlossesandunusedtaxcreditsA.UnusedtaxlossesandunusedtaxcreditsgeneratedfromdailyoperationoftheCompanyitselfDeductiblelossreferstothelosscalculatedandpermittedaccordingtotherequirementoftaxlawthatcanbeoffsetagainsttaxableincomeinfutureperiods.Thecriteriaforrecognizingdeferredtaxassetsarisingfromthecarryforwardofunusedtaxlossesandtaxcreditsarethesameasthecriteriaforrecognizingdeferredtaxassetsarisingfromdeductibletemporarydifferences.TheCompanyrecognizesadeferredtaxassetarisingfromunusedtaxlossesortaxcreditsonlytotheextentthatthereisconvincingotherevidencethatsufficienttaxableprofitwillbeavailableagainstwhichtheunusedtaxlossesorunusedtaxcreditscanbeutilizedbytheCompany.Incometaxesincurrentprofitorlossshallbedeductedaswell.B.UnusedtaxlossesandunusedtaxcreditsarisingfromabusinesscombinationUnderabusinesscombination,theacquiree’sdeductibletemporarydifferenceswhichdonotsatisfythecriteriaattheacquisitiondateforrecognitionofdeferredtaxassetshallnotberecognized.Within12monthsaftertheacquisitiondate,ifnewinformationregardingthefactsandcircumstancesexistsattheacquisitiondateandtheeconomicbenefitoftheacquiree’sdeductibletemporarydifferencesattheacquisitionisexpectedtoberealized,theCompanyshallrecognizeacquireddeferredtaxbenefitsandreducethecarryingamountofanygoodwillrelatedtothisacquisition.Ifgoodwillisreducedtozero,anyremainingdeferredtaxbenefitsshallberecognizedinprofitorloss.Allotheracquireddeferredtaxbenefitsrealizedshallberecognizedinprofitorloss.(iv)TemporarydifferencegeneratedinconsolidationeliminationWhenpreparingconsolidatedfinancialstatements,iftemporarydifferencebetweencarryingvalueoftheassetsandliabilitiesintheconsolidatedfinancialstatementsandtheirtaxablebasesisgeneratedfromeliminationofinter-Companyunrealizedprofitorloss,deferredtaxassetsordeferredtaxliabilitiesshallberecognizedintheconsolidatedfinancialstatements,andincometaxesexpenseincurrentprofitorlossshallbeadjustedaswellexceptfordeferredtaxrelatedtotransactionsoreventsrecognizeddirectlyinequityandbusinesscombination.(v)Share-basedpaymentsettledbyequityIftaxauthoritypermitstaxdeductionthatrelatestoshare-basedpayment,duringtheperiodinwhichtheexpensesarerecognized
accordingtotheaccountingstandards,theCompanyestimatesthetaxbaseinaccordancewithavailableinformationattheendoftheaccountingperiodandthetemporarydifferencearisingfromit.Deferredtaxshallberecognizedwhencriteriaofrecognitionaresatisfied.Iftheamountofestimatedfuturetaxdeductionexceedstheamountofthecumulativeexpensesrelatedtoshare-basedpaymentrecognizedaccordingtotheaccountingstandards,thetaxeffectoftheexcessamountshallberecognizeddirectlyinequity.
3.29LeasesEffectiveat1January2021
1)IdentifyingaleaseAtinceptionofacontract,theCompanyshallassesswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofoneormoreidentifiedassetsforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theCompanyshallassesswhether,throughouttheperiodofuse,thecustomerhastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedassetandtodirecttheuseoftheidentifiedasset.
2)IdentifyingaseparateleasecomponentWhenacontractincludesmorethanoneseparateleasecomponents,theCompanyshallseparatecomponentsofthecontractandaccountforeachleasecomponentseparately.Therighttouseanunderlyingassetisaseparateleasecomponentifbothconditionshavebeensatisfied:(i)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwithotherresourcesthatarereadilyavailabletothelessee;(ii)theunderlyingassetisneitherhighlydependenton,norhighlyinterrelatedwith,theotherunderlyingassetsinthecontract.
3)TheCompanyasalesseeAtthecommencementdate,theCompanyidentifiestheleasethathasaleasetermof12monthsorlessanddoesnotcontainapurchaseoptionasashort-termlease.Aleasequalifiesasaleaseofalow-valueassetifthenatureoftheassetissuchthat,whennew,theassetistypicallyoflowvalue.IftheCompanysubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.Forshort-termleasesforwhichtheunderlyingassetisoflowvalue,theCompanyshallrecognizetheleasepaymentsassociatedwiththoseleasesascostofrelevantassetorexpensesincurrentprofitorlossonastraight-linebasismethodovertheleaseterm.Exceptfortheelectionofsimpletreatmentasshort-termleaseorleaseofalow-valueassetasmentionedabove,atthecommencementdate,theCompanyshallrecognizearight-of-useassetandaleaseliability.3-1)Right-of-useassetAright-of-useassetisanassetthatrepresentsalessee’srighttouseanunderlyingassetfortheleaseterm.Atthecommencementdate,theCompanyshallinitiallymeasuretheright-of-useassetatcost.Thecostoftheright-of-useassetshall
comprise:
?Theamountoftheinitialmeasurementoftheleaseliability.?Anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived.?Anyinitialdirectcostsincurredbythelessee.?Anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanyrecognizesandmeasuresthecostinaccordancewiththerecognitioncriteriaandmeasurementmethodforestimatedliabilities,detailspleaserefertoNotes3.25.Thosecostsincurredtoproduceinventoriesshallbeincludedinthecostofinventories.Theright-of-useassetshallbedepreciatedaccordingtothecategoriesusingstraight‐linemethod(orunitsofproductionmethod,doubledecliningbalancemethodandsumoftheyearsdigitmethod).Ifitisreasonablycertainthattheownershipoftheunderlyingassetshallbetransferredtothelesseebytheendoftheleaseterm,thedepreciationrateshallbedeterminedbasedontheclassificationoftheright-of-useassetandestimatedresidualvalueratefromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,thedepreciationrateshallbedeterminedbasedontheclassificationoftheright-of-useassetfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.3-2)LeaseliabilityAtthecommencementdate,theleaseliabilityshallbemeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate.Theleasepaymentsincludedinthemeasurementoftheleaseliabilitycomprisethefollowing5items:
?Fixedpaymentsandin-substancefixedpayments,lessanyleaseincentivesreceivable.?Variableleasepaymentsthatdependonanindexorarate.?Theexercisepriceofapurchaseoptionifthelesseeisreasonablycertaintoexercisethatoption.?Paymentsofpenaltiesforterminatingthelease,iftheleasetermreflectsthelesseeexercisinganoptiontoterminatethelease.?Amountsexpectedtobepayablebythelesseeunderresidualvalueguarantees.Inordertocalculatethepresentvalueoftheleasepayments,interestrateimplicitintheleaseshallbeusedasthediscountrate.Ifthatratecannotbereadilydetermined,theCompanyshallusetheincrementalborrowingrate.Thedifferencebetweentheleasepaymentsanditspresentvalueshallberecognizedasunrecognizedfinancingcharges,calculatedbasesonthediscountrateofthepresentvalueoftheleasepaymentsineachperiodwithintheleasetermandrecordedasinterestexpenseincurrentprofitorloss.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesshallberecognizedincurrentprofitorlosswhenincurred.
Afterthecommencementdate,theCompanyshallremeasuretheleaseliabilitybasedontherevisedpresentvalueoftheleasepaymentsandadjustthecarryingamountoftheright-of-useassetifthereisachangeinthein-substancefixedpayments,orchangeintheamountsexpectedtobepayableunderaresidualvalueguarantee,orchangeinanindexorarateusedtodetermineleasepayments,orchangeintheassessmentorexercisingofanoptiontopurchasetheunderlyingasset,oranoptiontoextendorterminatethelease.
4)TheCompanyasalessorAtthecommencementdate,theCompanyshallclassifyaleaseasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset,otherwiseitshallbeclassifiedasanoperatinglease.4-1)OperatingleasesTheCompanyshallrecognizeleasepaymentsfromoperatingleasesasincomeonastraight-linebasis/unitsofproductionmethod(orothersystematicandrationalbasis)overthetermoftherelevantleaseandtheinitialdirectcostsincurredinobtaininganoperatingleaseshallbecapitalizedandrecognizedasanexpenseovertheleasetermonthesamebasisastheleaseincome.TheCompanyshallrecognizethevariableleasepaymentsrelatingtotheoperatingleasebutnotincludedinthemeasurementoftheleasereceivablesintocurrentprofitorlosswhenincurred.4-2)FinanceleasesAtthecommencementdate,theCompanyshallrecognizetheleasereceivablesatanaccountequaltothenetinvestmentinthelease(thesumofthepresentvalueoftheunguaranteedresidualvaluesandtheleasepaymentthatarenotreceivedatthecommencementdatediscountedattheinterestrateimplicitinthelease)andderecognizetheassetrelatingtothefinancelease.TheCompanyshallrecognizeinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.TheCompanyshallrecognizethevariableleasepaymentsrelatingtothefinanceleasebutnotincludedinthemeasurementofthenetinvestmentintheleaseintocurrentprofitorlosswhenincurred.
5)Leasemodifications5-1)AleasemodificationaccountedforasaseparateleaseTheCompanyshallaccountforamodificationtoaleaseasaseparatelease,ifboth:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscope.5-2)Aleasemodificationnotaccountedforasaseparatelease
A.TheCompanyasalesseeAttheeffectivedateoftheleasemodification,theCompanyshallredeterminetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm,ifthatratecanbereadilydetermined,ortheincrementalborrowingrateattheeffectivedateofthemodification,iftheinterestrateimplicitintheleasecannotbereadilydetermined.TheCompanyshallaccountfortheremeasurementoftheleaseliabilityby:
?Decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfullterminationoftheleaseforleasemodificationsthatdecreasethescopeoftheleaseorshortentheleaseterm.TheCompanyshallrecognizeinprofitorlossanygainorlossrelatingtothepartialorfullterminationofthelease.
?Makingacorrespondingadjustmenttothecarryingamountoftheright-of-useassetforallotherleasemodifications.B.TheCompanyasalessorTheCompanyshallaccountforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theCompanyshallaccountforthemodificationasfollows:
?Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeenineffectattheinceptiondate,theCompanyshallaccountfortheleasemodificationasanewleasefromtheeffectivedateofthemodificationandmeasurethecarryingamountoftheunderlyingassetasthenetinvestmentintheleaseimmediatelybeforetheeffectivedateoftheleasemodification;
?Iftheleasewouldhavebeenclassifiedasafinanceleasehadthemodificationbeenineffectattheinceptiondate,theCompanyshallaccountfortheleasemodificationaccordingtotherequirementsinthemodificationorrenegotiationofthecontract.
6)SaleandleasebacktransactionForthesaleandleasebacktransactionsexistingbeforethefirstexecutiondate,thecompanywillnotrevaluatewhethertheassettransfermeetstheprovisionsofNote3.26onaccountingtreatmentassalesonthefirstexecutiondate.6-1)Forthesaleandleasebacktransactionsthatshouldbeaccountedforassalesandfinancialleasesbeforethefirstexecutiondate,thecompany,astheseller(lessee),willaccountforleasebackinthesamewayasotherfinancialleases,andcontinuetoamortizerelevantdeferredincomeorlosswithintheleaseterm.
6-2)Forthesaleandleasebacktransactionsthatareaccountedforassalesandoperatingleasesbeforethefirstexecutiondate,thecompany,astheseller(lessee),shallaccountfortheleasebackinthesamewayasotheroperatingleases,andadjusttherighttouseassetsaccordingtotherelevantdeferredincomeorlossrecordedinthebalancesheetbeforethefirstexecutiondate.
3.30SignificantAccountingPoliciesandAccountingEstimates
Basedonthehistoricalexperienceandotherfactors,includingappropriateexpectationsoffutureevents,theCompanyperformedcontinuousassessmentofimportantaccountingestimatesandkeyassumptions.Thesamplesofimportantaccountingestimatesandkeyassumptionsthatarelikelytoresultinsignificantadjustmentriskofthebookvalueofassetsandliabilitiesinthenextaccountingyearareasfollows:
Classificationoffinancialassets
Themajorjudgmentsinvolvedindeterminingtheclassificationoffinancialassetsincludetheanalysisofbusinessmodelandcontractcashflowcharacteristics.
TheCompanydeterminesthebusinessmodelofmanagingfinancialassetsattheleveloffinancialportfolios.Thefactorsconsideredincludethewaytoevaluateandreporttheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandtheirmanagementmethods,aswellasthewayforrelevantbusinessmanagementpersonneltoobtainremuneration,etc.
Whenevaluatingwhetherthecontractcashflowoffinancialassetsisconsistentwiththebasicloanarrangements,theCompanyhasthefollowingmainjudgments:whetherthetimedistributionoramountoftheprincipalmaychangeinthedurationduetoprepaymentandotherreasons;whethertheinterestonlyincludesthetimevalueofmoney,creditrisk,otherbasiclendingrisksandtheconsiderationwithcostandprofit.Forexample,doestheamountofprepaymentonlyreflecttheoutstandingprincipalandtheinterestbasedontheoutstandingprincipal,aswellasthereasonablecompensationpaidfortheearlyterminationofthecontract.
Measurementofexpectedcreditlossofaccountsreceivable
TheCompanycalculatestheexpectedcreditlossofaccountsreceivablethroughthedefaultriskexposureofaccountsreceivableandtheexpectedcreditlossrate,anddeterminestheexpectedcreditlossratebasedonthedefaultprobabilityandthedefaultlossrate.Indeterminingtheexpectedcreditlossrate,theCompanyusesdataincludingtheinternalhistoricalcreditlossexperience,andadjuststhehistoricaldataaccordingtothecurrentsituationandforward-lookinginformation.Whenconsideringforward-lookinginformation,theindicatorsusedbytheCompanyincludetheriskofeconomicdownturn,changesinexternalmarketenvironment,technicalenvironmentandcustomersituation,etc.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditloss.Deferredtaxassets
Totheextentthatthereislikelytobesufficienttaxableprofitstooffsetthelosses,deferredincometaxassetsshouldberecognizedforallunusedtaxlosses.Themanagementhastoperformalotofjudgmenttoestimatethetimeandamountoffuturetaxableprofits,combinedwithtaxplanningstrategy,todeterminetheamountofdeferredincometaxassetsthatshouldberecognized.DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheestimatedfuturecashflowdiscountedaccordingtothecurrentdiscountrateofprojectswithsimilartermsandriskcharacteristics.Thiskindofvaluationrequiresthecompanytoestimatetheexpectedfuturecashflowanddiscountrate,soitisuncertain.Inlimitedcircumstances,iftheinformationusedtodeterminethefairvalueisinsufficient,orthedistributionrangeofthepossibleestimatedamountofthefairvalueiswide,andthecostrepresentsthebestestimateofthefairvaluewithintherange,thecostcanrepresenttheappropriateestimateofthefairvaluewithinthedistributionrange.
3.31ChangesinSignificantAccountingPoliciesandAccountingEstimates
(a)Changesinaccountingpolices
On7December2018,theMinistryofFinancereleasedthe“AccountingStandardsforBusinessEnterprisesNo.21-Lease”(hereinafterreferredastothe“newleasestandard”).TheCompanyappliedthenewleasestandardfortheannualreportingperiodbeginningon1January2021,andmodifiedtheaccountingpoliciesaccordingly.Fordetails,pleaserefertoNote3.29.Foracontractthathasexistedbeforethedateofinitiallyapplyingthenewleasestandard,theCompanychoosesnottore-assesswhetherthiscontractisorcontainsalease.Foracontractsignedormodifiedafterthedateofinitiallyapplyingthenewleasestandard,theCompanyassesseswhetherthiscontractisorcontainsaleaseinaccordancethedefinitionofleaseinthenewleasestandard.
1)TheCompanyasalesseeTheCompanychoosestorecognizethecumulativeimpactofinitiallyapplyingthisstandardasanadjustmenttotheopeningbalanceofretainedearningsandotherrelatedaccountsofthefinancialstatementsatthedateofinitialapplication(1January2021),notrestatingcomparativeinformation.?Forleasespreviouslyclassifiedasfinanceleases,thecarryingamountoftheright-of-useasset
andtheleaseliabilityatthedateofinitialapplicationshallbethecarryingamountofthelease
assetandfinanceleasepayableimmediatelybeforethatdatemeasuredapplyingpreviousstandard.?Forleasespreviouslyclassifiedasoperatingleases,theCompanymeasuredthatleaseliabilityatthepresentvalueoftheremainingleasepayments,discountedusingthelessee’sincrementalborrowingrateatthedateofinitialapplication,andonalease-by-leasebasis,measuresthatright-of-useassetatanamountequaltotheleaseliabilityadjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatingtothatleaserecognizedinthestatementoffinancialpositionimmediatelybeforethedateofinitialapplication.[or:measuresthatright-of-useassetatitscarryingamountasifthestandardhadbeenappliedsincethecommencementdate,butdiscountedusingthelessee’sincrementalborrowingrateatthedateofinitialapplication]?TheCompanytestswhethertheright-of-useassethasbeenimpairedandaccountsfor
theimpairmentlossaccordingtoNote3.21atthedateofinitialapplication.TheCompanyaccountsfortheoperatingleaseforwhichtheunderlyingassetisoflowvalueinasimplifiedmethodinwhichnoright-of-useassetandleaseliabilityneedtoberecognized.Inaddition,theCompanyusesoneormoreofthefollowingpracticalexpedientsforleasespreviouslyclassifiedasoperatingleases:
?Accountfortheleasesforwhichtheleasetermendswithin12monthsofthedateofinitial
applicationinthesamewayasshort-termleases.?Applyasinglediscountratetoaportfolioofleaseswithreasonablysimilarcharacteristics
whenmeasuringtheleaseliability.?Excludeinitialdirectcostsfromthemeasurementoftheright-of-useasset.?Usehindsightindeterminingtheleasetermifthecontractcontainsoptionstoextendor
terminatethelease.?Relyonitsassessmentofwhetherleasesareonerousapplying“AccountingStandardsfor
BusinessEnterprisesNo13-Contingencies”immediatelybeforethedateofinitialapplication
asanalternativetoperforminganimpairmentreview,andadjusttheright-of-useassetatthe
dateofinitialapplicationbytheamountofanyprovisionforonerousleasesrecognizedinthe
statementoffinancialpositionimmediatelybeforethedateofinitialapplication.?Accountfortheleasebasedonthefinalcontracttermiftheleasewasmodifiedbeforethedate
ofinitialapplication.
2)TheCompanyasalessorTheCompany,astheintermediatelessor,reassessessubleasespreviouslyclassifiedasoperatingleasesandareongoingatthedateofinitialapplication,todeterminewhethereachsubleaseshouldbeclassifiedasanoperatingleaseorafinanceleaseatthedateofinitialapplicationonthebasisoftheremainingcontractualtermsandconditionsoftheheadleaseandsubleaseatthatdate.Exceptfortheabove-mentionedsituation,theCompanydoesnotmakeanyadjustmentsontransitionforleasesinwhichitisalessorandaccountsforthoseleasesapplyingthisStandardfromthedateofinitialapplication.
3)SaleandleasebacktransactionForthesaleandleasebacktransactionsexistingbeforethefirstexecutiondate,thecompanywillnotrevaluatewhethertheassettransfermeetstheprovisionsofNote3.26onaccountingtreatmentassalesonthefirstexecutiondate.Forthesaleandleasebacktransactionsthatshouldbeaccountedforassalesandfinancialleasesbeforethefirstexecutiondate,thecompany,astheseller(lessee),willaccountforleasebackinthesamewayasotherfinancialleases,andcontinuetoamortizerelevantdeferredincomeorlosswithintheleaseterm.Forthesaleandleasebacktransactionsthatareaccountedforassalesandoperatingleasesbeforethefirstexecutiondate,thecompany,astheseller(lessee),shallaccountfortheleasebackinthesamewayasotheroperatingleases,andadjusttherighttouseassetsaccordingtotherelevantdeferredincomeorlossrecordedinthebalancesheetbeforethefirstexecutiondate.Thecumulativeimpactoftheaboveaccountingpoliciesisasfollows:
Duetotheimplementationofthenewleasingstandards,theconsolidatedfinancialstatementsofthecompanyareadjustedaccordingly.OnJanuary1,2021,theright-of-useassetsareCNY9,894,351.89,theleaseliabilitiesareCNY7,285,946.35,andthenon-currentliabilitiesduewithinoneyearareCNY2,608,405.54.Relevantadjustmentshavenoimpactontheshareholders'equityattributabletotheparentcompanyintheconsolidatedfinancialstatementsofthecompany.Thefinancialstatementsoftheparentcompanyofthecompanyneednotbeadjusted.Theabovechangesinaccountingpolicieshavebeenapprovedbythecompanyatthe10thmeetingoftheninthboardofdirectorsheldonApril15,2021.
(b)Significantchangesinaccountingestimates
TheCompanyhasnosignificantchangesinaccountingestimatesforthereportingperiod.(c)Adjustmentsofthefinancialstatementsatthebeginningofthereportingperiodforthefirstyearadoptionofnewleasestandards.ConsolidatedFinancialStatementsUnit:YuanCurrency:CNY
| Items | 31December2020 | 1January2021 | Adjustment |
| Right-of-useasset | notapplicable | 9,894,351.89 | 9,894,351.89 |
| Non-currentliabilitiesduewithinoneyear | 2,608,405.54 | 2,608,405.54 | |
| Leaseliabilities | notapplicable | 7,285,946.35 | 7,285,946.35 |
Descriptionofadjustmentofeachitem:
OnJanuary1,2021,fortheoperatingleasebeforethefirstexecutiondate,thecompanyadoptsthepresentvalueafterdiscountingtheincrementalloaninterestratebeforethefirstexecutiondatetomeasuretheleaseliability,withanamountofCNY9,894,351.89,ofwhichCNY2,608,405.54duewithinoneyearisreclassifiedtonon-currentliabilitiesduewithinoneyear.Thecompanymeasurestheright-of-useassetsofCNY9,894,351.89accordingtotheamountequaltotheleaseliabilityandthenecessaryadjustmentaccordingtotheprepaidrent.Thereisnodecreaseinprepayments.Note4.TAXATION
4.1MajorCategoriesofTaxandTaxRatesApplicabletotheCompany
| axes | Taxbases | Taxrates |
| Value-addedtax(VAT) | Thetaxablerevenuefromsalesofgoodsorrenderingofservices | 13%，11%，9%，5%，6%，3% |
| Consumptiontax | Thetaxablerevenuefromsalesofgoods | 10% |
| Housingpropertytax | Forhousingpropertyleviedonthebasisofprice,housingpropertytaxisleviedattherateof1.2%ofthebalanceafterdeducting30%ofthecost;forhousingpropertyleviedonthebasisofrent,housingpropertytaxis | 1.2%、12% |
| axes | Taxbases | Taxrates |
| leviedattherateof12%ofrentrevenue. | ||
| Urbanmaintenanceandconstructiontax | Turnovertaxpayable | 7% |
| Educationsurcharge | Turnovertaxpayable | 3% |
| Localeducationsurcharge | Turnovertaxpayable | 2% |
| Enterpriseincometax | Taxableincome | 20%、25% |
Taxratesofincometaxofdifferentsubsidiariesarestatedasbelow:
| NameofTaxpayer | RateofIncomeTax |
| 深圳市新永通机动车检测设备有限公司(ShenzhenXinyongtongAutoVehicleInspectionEquipmentCo.,Ltd.) | 20% |
| 深圳市华日安信汽车检测有限公司(ShenzhenHuariAnxinAutomobileInspectionCo.,Ltd.) | 20% |
| 深圳市特力创盈科技有限公司(ShenzhenTellusChuangyingTechnologyCo.,Ltd.) | 20% |
| Taxpayersotherthantheabove-mentioned | 25% |
4.2TaxPreferencePursuanttothedocumentnumberedCaiShui[2019]13issuedbyStateTaxationAdministration,ShenzhenXinyongtongAutoVehicleInspectionEquipmentCo.,Ltd.andShenzhenHuariAnxinAutoVehicleInspectionCo.,Ltd.enjoysthepreferentialtaxpolicyformicroandsmall-sizedenterprises,andissubjecttotheenterpriseincometaxrateof20%.Note5.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS
5.1Monetaryfunds
(1)Details
| Items | 31Dec2021 | 31Dec2020 |
| Cashonhand | 36,941.24 | 20,542.55 |
| Cashinbank | 240,545,115.92 | 237,605,156.38 |
| Total | 240,582,057.16 | 237,625,698.93 |
(1)ThebankdepositofCNY26,926,471.30isthesupervisionfundofthecompany'sdevelopment
ofplot03oftheupgradingandreconstructionprojectofTellus-Jimenggoldjewelryindustrialpark.Theperformanceguaranteefundis2,000,000.00CNY.Inaddition,thereisnoothermoneywithlimiteduseandpotentialrecoveryriskduetomortgage,pledgeorfreezinginthemonetaryfundattheendoftheperiod.
5.2Held-for-tradingfinancialassets
| Items | 31Dec2021 | 31Dec2020 |
| Financialassetsclassifiedasatfairvaluethroughprofitorloss | 412,712,843.84 | 314,013,869.86 |
| Including:Debtinstrumentinvestments | 412,712,843.84 | 314,013,869.86 |
| Total | 412,712,843.84 | 314,013,869.86 |
Thetradingfinancialassetsattheendoftheperiodincreasedby31.43%comparedwiththebeginningoftheperiod,mainlyduetothecompanyusingidleself-ownedfundsforcashmanagement.
5.3Accountsreceivable
(1)Detailsonages
| Items | 31Dec2021 | 31Dec2020 |
| Within1year | 18,274,113.05 | 20,025,574.10 |
| 1-2years | 3,360.00 | |
| 2-3years | 3,360.00 | |
| Over3years | 48,781,485.16 | 49,125,862.29 |
| Subtotal | 67,058,958.21 | 69,154,796.39 |
| Less:provisionforbaddebts | 48,964,898.29 | 49,326,286.03 |
| Total | 18,094,059.92 | 19,828,510.36 |
(2)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 48,781,485.16 | 72.74 | 48,781,485.16 | 100.00 | |
| Receivableswithprovisionmadeonacollectivebasis | 18,277,473.05 | 27.26 | 183,413.13 | 1.00 | 18,094,059.92 |
| Total | 67,058,958.21 | 100.00 | 48,964,898.29 | 73.02 | 18,094,059.92 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 49,125,862.29 | 71.04 | 49,125,862.29 | 100.00 | |
| Receivableswithprovisionmadeonacollectivebasis | 20,028,934.10 | 28.96 | 200,423.74 | 1.00 | 19,828,510.36 |
| Total | 69,154,796.39 | 100.00 | 49,326,286.03 | 71.33 | 19,828,510.36 |
Specificdescriptionofprovisionforbaddebts:
(a)Accountsreceivablewithprovisionmadeonanindividualbasis
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) | Reasons |
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) | Reasons |
| 深圳市金路工贸公司(ShenzhenJinluIndustrialandTradingCo.,Ltd.?) | 9,846,607.00 | 9,846,607.00 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 广东湛江三星汽车股份有限公司(GuangdongZhanjiangSanxingAutomobileCo.,Ltd.*) | 4,060,329.44 | 4,060,329.44 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 王昌龙(WANGChanglong) | 2,370,760.40 | 2,370,760.40 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 惠州市建达城道桥工程公司(HuizhouJiandachengRoadandBridgeEngineeringCo.,Ltd.*) | 2,021,657.70 | 2,021,657.70 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 江铃汽车制造厂(JianglingAutomobileFactory*) | 1,191,059.98 | 1,191,059.98 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 阳江市汽车贸易有限公司(YangjiangAutomobileTradingCo.,Ltd.*) | 1,150,000.00 | 1,150,000.00 | 100.00 | Expectedtobeunrecoverableduetolongages |
| 广东省物资集团(GuangdongMaterialsGroupCorporation*) | 1,862,000.00 | 1,862,000.00 | 100.00 | Expectedtobeunrecoverableduetolongages |
| Others | 26,279,070.64 | 26,279,070.64 | 100.00 | Expectedtobeunrecoverableduetolongages |
| Subtotal | 48,781,485.16 | 48,781,485.16 | 100.00 |
?
TheEnglishnamesareforidentificationpurposeonly.
*TheEnglishnamesareforidentificationpurposeonly.
(b)Accountreceivableswithprovisionforbaddebtsmadeonacollectivebasisusingageanalysismethod
| Ages | 31Dec2021 | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 18,274,113.05 | 182,741.13 | 1.00 |
| 1-2years | |||
| 2-3years | 3,360.00 | 672.00 | 20.00 |
| Subtotal | 18,277,473.05 | 183,413.13 | 1.00 |
(Continued)
| Ages | 31Dec2020 | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 20,025,574.10 | 200,255.74 | 1.00 |
| 1-2years | 3,360.00 | 168.00 | 5.00 |
| 2-3years | |||
| Subtotal | 20,028,934.10 | 200,423.74 | 1.00 |
Theconfirmationstandardanddescriptionofprovisionforbaddebtsmadeonacollectivebasis,pleaserefertoNote3.10.
(3)Changesinprovisionforbaddebts
| Items | Openingbalance | Increase | Decrease | Closingbalance | |||||
| Accrual | Recovery | Others | Reversal | Written-off* | Others | ||||
| Receivableswithprovisionmadeonanindividualbasis | 49,125,862.29 | 344,377.13 | 48,781,485.16 | ||||||
| Receivableswithprovision | 200,423.74 | -17,010.61 | 183,413.13 | ||||||
| Items | Openingbalance | Increase | Decrease | Closingbalance | |||||
| Accrual | Recovery | Others | Reversal | Written-off* | Others | ||||
| madeonacollectivebasis | |||||||||
| Subtotal | 49,326,286.03 | -17,010.61 | 344,377.13 | 48,964,898.29 | |||||
*Refertothecancellationofsubsidiariesinthecurrentperiodandthewritten-offoftheoriginallyaccruedbaddebtprovision.
(4)Detailsofthetop5debtorswithlargestbalances
| Debtors | Bookbalance | Proportiontothetotalbalanceofaccountsreceivable(%) | Provisionforbaddebts |
| 深圳市金路工贸公司(ShenzhenJinluindustryandTradeCo.,Ltd.*) | 9,846,607.00 | 14.68 | 9,846,607.00 |
| 广东湛江三星汽车股份有限公司(GuangdongSamsungAutomobileCo.,Ltd.*) | 4,060,329.44 | 6.05 | 4,060,329.44 |
| 深圳市尚金缘珠宝实业有限公司(ShenzhenshangjinyuanJewelryIndustryCo.,Ltd.*) | 2,981,007.49 | 4.45 | 29,810.07 |
| 王昌龙(WangChanglong) | 2,370,760.40 | 3.54 | 2,370,760.40 |
| 广东省物资集团(GuangdongMaterialsGroup) | 2,021,657.70 | 3.01 | 2,021,657.70 |
| Subtotal | 21,280,362.03 | 31.73 | 18,329,164.61 |
5.4Prepayments
(1)Detailsonages
| Ages | 31Dec2021 | 31Dec2020 | ||
| Bookbalance | %tototal | Bookbalance | %tototal | |
| Within1year | 16,519,701.91 | 99.92 | 9,834,423.80 | 99.86 |
| Ages | 31Dec2021 | 31Dec2020 | ||
| Bookbalance | %tototal | Bookbalance | %tototal | |
| 1-2years | 800 | 0.01 | ||
| 2-3years | 632 | 0.01 | ||
| Over3years | 12,525.94 | 0.08 | 11,893.94 | 0.12 |
| Total | 16,532,227.85 | 100 | 9,847,749.74 | 100 |
Theprepaymentattheendoftheperiodincreasedby67.88%comparedwiththebeginningoftheperiod,mainlyduetotheincreaseofthecompany'sprepaymentforautomobilepurchase.
(2)Detailsofthetop5debtorswithlargestbalances
| Debtors | Bookbalance | Proportiontothetotalbalanceofadvancespaid(%) |
| 一汽丰田汽车销售有限公司(FAWToyotaMotorSalesCo.,Ltd.?) | 12,801,407.73 | 77.43 |
| 丰田汽车(中国)投资有限公司(ToyotaMotor(China)InvestmentCo.,Ltd.*) | 2,776,364.00 | 16.79 |
| 深圳三粤广告传媒有限公司(ShenzhenSanyueadvertisingmediaCo.,Ltd?) | 253,750.00 | 1.54 |
| 小鹏汽车销售有限公司(XiaopengAutomobileSalesCo.,Ltd.*) | 264,431.18 | 1.6 |
| 深圳市燃气集团股份有限公司(ShenzhenGasCorporationLtd.*) | 127,005.50 | 0.77 |
| Subtotal | 16,222,958.41 | 98.13 |
5.5OtherReceivables
(1)Details
| Items | Closingbalance | Openingbalance |
| Interestreceivable | ||
| Dividendreceivable | 547,184.35 | 24,647,732.42 |
?
TheEnglishnamesareforidentificationpurposeonly.
| Items | Closingbalance | Openingbalance |
| Otherreceivables | 4,525,786.42 | 4,622,058.41 |
| Total | 5,072,970.77 | 29,269,790.83 |
Otherreceivablesattheendoftheperioddecreasedby82.67%comparedwiththebeginningoftheperiod,mainlyduetotherecoveryofdividendsfromtheoriginalassociateShenzhenDongfengAutomobileCo.,Ltd.
(2)Dividendreceivable(a)Details
| Items | Closingbalance | Openingbalance |
| 中国浦发机械工业股份有限公司(ChinaPerfectMachineryIndustryCorp.,Ltd.?) | 547,184.35 | 547,184.35 |
| 深圳东风汽车有限公司(ShenzhenDongfengAutomobileCo.,Ltd.*) | 24,100,548.07 | |
| Subtotal | 547,184.35 | 24,647,732.42 |
| Less:provisionforbaddebts | ||
| Total | 547,184.35 | 24,647,732.42 |
(b)Dividendreceivableover1year
| Items | Closingbalance | Ages | Reasons | Notes |
| 中国浦发机械工业股份有限公司(ChinaPerfectMachineryIndustryCorp.,Ltd.?) | 547,184.35 | 2-3years | Notyetpaid | Noimpairment |
| Total | 547,184.35 |
(3)Otherreceivables(a)Otherreceivablescategorizedbyages
| Ages | ClosingBalance | OpeningBalance |
| Within1year | 1,585,442.66 | 1,800,294.61 |
?
TheEnglishnamesareforidentificationpurposeonly.
?TheEnglishnamesareforidentificationpurposeonly.
| Ages | ClosingBalance | OpeningBalance |
| 1–2years | 531,458.10 | 161,722.86 |
| 2–3years | 82,621.56 | 417,554.97 |
| Over3years | 54,068,194.72 | 54,005,535.26 |
| Subtotal | 56,267,717.04 | 56,385,107.70 |
| Less:provisionforbaddebts | 51,741,930.62 | 51,763,049.29 |
| Total | 4,525,786.42 | 4,622,058.41 |
(b)Otherreceivablescategorizedbynature
| Natureofreceivables | Closingbalance | Openingbalance |
| Depositassecurity | 598,861.89 | 477,190.50 |
| Reservefund | 13,822.20 | |
| Temporaryadvancepaymentreceivable | 55,668,855.15 | 55,894,095.00 |
| Subtotal | 56,267,717.04 | 56,385,107.70 |
| Less:provisionforbaddebts | 51,741,930.62 | 51,763,049.29 |
| Total | 4,525,786.42 | 4,622,058.41 |
(c)Otherreceivablescategorizedbymethodsofprovisionforbaddebts
A.Asof2021-12-31,provisionforbaddebtsaccordingtothemodelofphaseI/II/III:
| Phase | Closingbalance | Provisionforbaddebts | Openingbalance |
| I | 2,199,522.32 | 58,951.65 | 2,140,570.67 |
| II | |||
| III | 54,068,194.72 | 51,682,978.97 | 2,385,215.75 |
| Total | 56,267,717.04 | 51,741,930.62 | 4,525,786.42 |
Asof2021-12-31,provisionforbaddebtsatphaseI:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 2,199,522.32 | 2.68 | 58,951.65 | 2,140,570.67 | |
| 1.Portfoliogroupedwithages | 1,629,772.93 | 2.17 | 35,331.04 | 1,594,441.89 | nodramaticcreditriskchangeafterconfirmed |
| 2.Portfoliogroupedwithdepositassecurity | 569,749.39 | 4.15 | 23,620.61 | 546,128.78 | nodramaticcreditriskchangeafterconfirmed |
| Total | 2,199,522.32 | 2.68 | 58,951.65 | 2,140,570.67 |
Asof2021-12-31,provisionforbaddebtsatphaseIII:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | 49,297,763.20 | 100 | 49,297,763.20 | creditriskchangedramaticallyafterconfirmed | |
| Receivableswithprovisionmadeonacollectivebasis | 4,770,431.52 | 50 | 2,385,215.77 | 2,385,215.75 | |
| 1.PPortfoliogrouped | 4,741,319.02 | 50 | 2,370,659.52 | 2,370,659.50 | creditriskchange |
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| withages | dramaticallyafterconfirmed | ||||
| 2.PPortfoliogroupedwithdepositassecurity | 29,112.50 | 50 | 14,556.25 | 14,556.25 | |
| Total | 54,068,194.72 | 95.59 | 51,682,978.97 | 2,385,215.75 |
B.Asof2020-12-31,provisionforbaddebtsaccordingtothemodelofphaseI/II/III:
| Phase | Closingbalance | Provisionforbaddebts | Openingbalance |
| I | 2,379,572.44 | 109,600.10 | 2,269,972.34 |
| II | |||
| III | 54,005,535.26 | 51,653,449.19 | 2,352,086.07 |
| Total | 56,385,107.70 | 51,763,049.29 | 4,622,058.41 |
Asof2020-12-31,provisionforbaddebtsatphaseI:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 2,379,572.44 | 4.61 | 109,600.10 | 2,269,972.34 | |
| 1.Portfoliogrouped | 1,931,494.44 | 5.44 | 105,119.32 | 1,826,375.12 | nodramaticcreditrisk |
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| withages | changeafterconfirmed | ||||
| 2.Portfoliogroupedwithdepositassecurity | 448,078.00 | 1 | 4,480.78 | 443,597.22 | nodramaticcreditriskchangeafterconfirmed |
| Total | 2,379,572.44 | 4.61 | 109,600.10 | 2,269,972.34 |
Asof2020-12-31,provisionforbaddebtsatphaseIII:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | 49,301,363.12 | 100 | 49,301,363.12 | creditriskchangedramaticallyafterconfirmed | |
| Receivableswithprovisionmadeonancollectivebasis | 4,704,172.14 | 50 | 2,352,086.07 | 2,352,086.07 | |
| 1.Portfoliogroupedwithages | 4,675,059.64 | 50 | 2,337,529.82 | 2,337,529.82 | creditriskchangedramaticallyafterconfirmed |
| 2.Portfoliogroupedwithdepositassecurity | 29,112.50 | 50 | 14,556.25 | 14,556.25 | |
| Total | 54,005,535.26 | 95.64 | 51,653,449.19 | 2,352,086.07 |
Asof2021-12-31,otherreceivableswithprovisionmadeonanindividualbasis
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) |
| 中汽华南汽车销售公司 | 9,832,956.37 | 9,832,956.37 | 100 |
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) |
| (ZhongqiSouthChinaAutomobileSalesCo.,Ltd.?) | |||
| 南方工贸深圳实业公司(ShenzhenNanfangIndustryandTradeCo.,Ltd.*) | 7,359,060.75 | 7,359,060.75 | 100 |
| 深圳中浩（集团）股份有限公司(ShenzhenZhonghao(Group)Co.,Ltd.*) | 5,000,000.00 | 5,000,000.00 | 100 |
| 金贝丽家电公司(JinbeiliHouseholdAppliancesCo.,Ltd.*) | 2,706,983.51 | 2,706,983.51 | 100 |
| 深圳市新兴泰贸易有限公司(ShenzhenXinxingtaiTradingCo.,Ltd.*) | 2,418,512.90 | 2,418,512.90 | 100 |
| 深圳石油化工（集团）股份有限公司(ShenzhenPetrochemical(Group)Co.,Ltd.*) | 1,898,419.67 | 1,898,419.67 | 100 |
| 深圳市特发华通包装实业有限公司(ShenzhenSDGHuatongPackagingCo.,Ltd.*) | 1,212,373.79 | 1,212,373.79 | 100 |
| 深圳金鹤标准件模具有限公司(ShenzhenJinheMouldCo.,Ltd.*) | 1,023,560.00 | 1,023,560.00 | 100 |
| Others | 17,845,896.21 | 17,845,896.21 | 100 |
| Total | 49,297,763.20 | 49,297,763.20 | 100 |
Asof2021-12-31,otherreceivableswithprovisionmadeonancollectivebasis
| Categories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 1.Portfoliogroupedwithages | 6,371,091.95 | 2,405,990.56 | 37.76 |
| Including:Within1year | 1,463,771.27 | 14,637.72 | 1 |
| 1–2years | 83,380.10 | 4,169.01 | 5 |
| 2–3years | 82,621.56 | 16,524.31 | 20 |
| Over3years | 4,741,319.02 | 2,370,659.52 | 50 |
?
TheEnglishnamesareforidentificationpurposeonly.
| Categories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 2.Portfoliogroupedwithdepositassecurity | 598,861.89 | 38,176.86 | 6.37 |
| Total | 6,969,953.84 | 2,444,167.42 | 35.07 |
Asof2020-12-31,otherreceivableswithprovisionmadeonancollectivebasis
| Categories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 1.Portfoliogroupedwithages | 6,606,554.08 | 2,442,649.14 | 36.97 |
| Including:Within1year | 1,352,216.61 | 13,522.17 | 1 |
| 1–2years | 161,722.86 | 8,086.15 | 5 |
| 2–3years | 417,554.97 | 83,511.00 | 20 |
| Over3years | 4,675,059.64 | 2,337,529.82 | 50 |
| 2.Portfoliogroupedwithdepositassecurity | 477,190.50 | 19,037.00 | 3.99 |
| Total | 7,083,744.58 | 2,461,686.14 | 34.75 |
(d)Changesinprovisionforbaddebts
| Items | PhaseI | PhaseII | PhaseIII | Total |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Openingbalance | 109,600.10 | 51,653,449.19 | 51,763,049.29 | |
| Openingbalanceincurrentperiod | ||||
| --TransferredtophaseII | ||||
| --TransferredtophaseIII | ||||
| --ReversedtophaseII | ||||
| --ReversedtophaseI |
| Items | PhaseI | PhaseII | PhaseIII | Total |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Provisionmadeincurrentperiod | -50,648.45 | 29,529.78 | -21,118.67 | |
| Provisionrecoveredincurrentperiod | ||||
| Provisionreversedincurrentperiod | ||||
| Provisionwritten-offincurrentperiod | ||||
| Otherchanges | ||||
| Closingbalance | 58,951.65 | 51,682,978.97 | 51,741,930.62 |
(e)Detailsofthetop5debtorswithlargestbalances
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| 中汽华南汽车销售公司(ZhongqiSouthChinaAutomobileSalesCo.,Ltd.*) | Currentaccount | 9,832,956.37 | Over3years | 17.48 | 9,832,956.37 |
| 南方工贸深圳实业公司(ShenzhenNanfangIndustryandTradeCo.,Ltd.*) | Currentaccount | 7,359,060.75 | Over3years | 13.08 | 7,359,060.75 |
| 深圳中浩（集团）股份有限公司(ShenzhenZhonghao | Currentaccount | 5,000,000.00 | Over3years | 8.89 | 5,000,000.00 |
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| (Group)Co.,Ltd.*) | |||||
| 深圳凯丰特种汽车工业有限公司(ShenzhenKaifengSpecialAutomobileIndustryCo.,Ltd.*) | Currentaccount | 4,413,728.50 | Over3years | 7.84 | 2,206,864.25 |
| 深圳市金贝丽电器有限公司(JinbeiliHouseholdAppliancesCo.,Ltd.*) | Currentaccount | 2,706,983.51 | Over3years | 4.81 | 2,706,983.51 |
| Total | 29,312,729.13 | 52.1 | 27,105,864.88 |
5.6Inventories
(1)Details
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforwrite-down | Carryingamount | Bookbalance | Provisionforwrite-down | Carryingamount | |
| Rawmaterials | 15,814,028.99 | 14,772,382.17 | 1,041,646.82 | 15,481,888.98 | 14,772,382.17 | 709,506.81 |
| Goodsonhand | 39,261,052.16 | 14,867,773.94 | 24,393,278.22 | 35,515,473.74 | 14,145,300.62 | 21,370,173.12 |
| Total | 55,075,081.15 | 29,640,156.11 | 25,434,925.04 | 50,997,362.72 | 28,917,682.79 | 22,079,679.93 |
(2)Provisionforinventorywrite-down
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Provision | Others | Reversalorwritten-off | Others | |||
| Rawmaterials | 14,772,382.17 | 14,772,382.17 | ||||
| Goodsonhand | 14,145,300.62 | 812,607.69 | 90,134.37 | 14,867,773.94 | ||
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||
| Provision | Others | Reversalorwritten-off | Others | |||
| Subtotal | 28,917,682.79 | 812,607.69 | 90,134.37 | 29,640,156.11 | ||
5.7Held-for-saleassetsNon-currentassetsordisposalgroupheldforsaleattheendoftheperiod
| Items | Bookvalue(2021-12-31) | Fairvalue(2021-12-31) | Estimateddisposalexpenses | Estimateddisposaltime |
| 深圳市汽车工业进出口有限公司(ShenzhenautomobileindustryimportandExportCo.,Ltd.*) | 530,520.33 | 530,520.33 | ||
| Total | 530,520.33 | 530,520.33 |
Thecompany'ssubsidiary"ShenzhenautomobileindustrytradeCo.,Ltd."sold35.75%oftheequityofthejoint-stockenterprise"ShenzhenautomobileindustryimportandExportCo.,Ltd."throughpubliclisting.OnDecember21,2021,thecompanysignedtheenterprisestate-ownedpropertyrighttransfercontractwiththelistedtransfereetotransfer35.75%oftheequityof"ShenzhenautomobileindustryimportandExportCo.,Ltd."withCNY9.3346million.OnJanuary7,2022,thesubsidiaryreceivedatotalequitytransferpaymentofCNY9.3346million.AccordingtotheCASNo.42–Non-currentassetsheldforsale,disposalgroupanddiscontinuedoperations,thecompanyclassifiedthebalanceofCNY530,500.00oflong-termequityinvestmentinShenzhenautomobileindustryimportandExportCo.,Ltd.asheldforsaleassetsasofDecember31,2021,andwillnotbeaccountedwiththeequitymethodafterDecember31,2021.
5.8OtherCurrentAssets
| Items | Closingbalance | Openingbalance |
| InputVATtobecredited | 8,596,585.57 | 6,000,566.69 |
| Total | 8,596,585.57 | 6,000,566.69 |
5.9Long-termreceivables
(1)Detailsoflong-termreceivables
| Items | 31Dec2021 | 31Dec2020 | Discountraterange | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | Bookbalance | Provisionforbaddebts | Carryingamount | ||
| Relatedtransactions | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | |||
| Total | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | |||
(2)Changesinprovisionforbaddebts(a)AsofDecember31,2021,theprovisionforbaddebtsshallbemadeaccordingtothefollowingthreestages:
| Stage | Bookbalance | Provisionforbaddebts | Carryingaccounts |
| Stage3 | 2,179,203.68 | 2,179,203.68 | |
| Total | 2,179,203.68 | 2,179,203.68 |
AsofDecember31,2021,theprovisionforbaddebtsoflong-termreceivablesinthethirdstageisasfollows:
| Category | Bookbalance | Provisionrate（%） | Provisionforbaddebts | Carryingaccounts | Reason |
| Provisionforbaddebtsbysingleitem | 2,179,203.68 | 100 | 2,179,203.68 | Riskincreasedafteroriginallyrecognized | |
| Total | 2,179,203.68 | 100 | 2,179,203.68 |
(b)AsofDecember31,2020,theprovisionforbaddebtsiscalculatedanddrawnaccordingtothethirdstagemodelasfollows:
| Stage | Bookbalance | Provisionforbaddebts | Carryingaccounts |
| Stage1 | |||
| Stage2 | |||
| Stage3 | 2,179,203.68 | 2,179,203.68 | |
| Total | 2,179,203.68 | 2,179,203.68 |
OnDecember31,2020,theprovisionforbaddebtsoflong-termreceivablesinthethirdstageisasfollows:
| Category | Bookbalance | Provisionrate（%） | Provisionforbaddebts | Carryingaccounts | Reason |
| Provisionforbad | 2,179,203.68 | 100 | 2,179,203.68 | Riskincreasedafteroriginally |
| Category | Bookbalance | Provisionrate（%） | Provisionforbaddebts | Carryingaccounts | Reason |
| debtsbysingleitem | recognized | ||||
| Total | 2,179,203.68 | 100 | 2,179,203.68 |
5.10.Long-termequityinvestments
(1)Details
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| Jointventures | |||||
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | 37,666,741.13 | 9,823,999.65 | |||
| 深圳市特力行投资有限公司(ShenzhenTellusXingInvestmentCo.,Ltd.*)[Note5] | 12,697,424.88 | 754,797.47 | |||
| Subtotal | 50,364,166.01 | 10,578,797.12 | |||
| Associates | |||||
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 33,607,146.14 | 7,760,758.20 | |||
| 深圳市汽车工业进出口有限公司(ShenzhenAutomobileIndustryImportandExportCo.,Ltd.*)[Note6] | 995,270.33 | -464,750.00 | |||
| 深圳东风汽车有限公司(ShenzhenDongfeng | 38,674,373.09 | 38,674,373.09 | |||
*
TheEnglishnamesareforidentificationpurposeonly.
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| AutomobileCo.,Ltd.*)[Note4] | |||||
| 深圳市新永通油泵环保有限公司(ShenzhenXinyongtongOilPumpandEnvironmentalProtectionCo.,Ltd.*) | |||||
| 深圳市新永通咨询有限公司(ShenzhenXinyongtongConsultingCo.,Ltd.*) | |||||
| 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*)[Note3] | |||||
| 深圳市新永通汽车服务有限公司(ShenzhenXinyongtongAutomobileServiceCo.,Ltd.*)[Note4] | |||||
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*)[Note3] | |||||
| 湖南昌阳实业股份有限公司(HunanChangyangIndustrialCo.,Ltd.*)[Note1] | |||||
| 深圳捷成电子有限公司(ShenzhenJiechengElectronicCo.,Ltd.*)[Note1] | |||||
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| 深圳先导新材料有限公司(ShenzhenXiandaoNewMaterialsCo.,Ltd.*)[Note1] | |||||
| 中国汽车工业深圳贸易公司(ChinaAutomobileShenzhenTradingCo.,Ltd.*)[Note1] | |||||
| 深圳通用标准件有限公司(ShenzhenGeneralStandardPartsCo.,Ltd.*)[Note1] | |||||
| 深圳中汽华南汽车销售公司(ZhongqiSouthChinaAutomobileSalesCo.,Ltd.*)[Note1] | |||||
| 深圳百力源电源有限公司(ShenzhenBailiyuanPowerCo.,Ltd.*)[Note1] | |||||
| 深圳市益民汽车贸易公司(ShenzhenYiminAutomobileTradingCo.,Ltd.*)[Note1] | |||||
| 深圳火炬火花塞工业公司(ShenzhenTorchSparkPlugIndustrialCo.,Ltd.*) | |||||
| Subtotal | 73,276,789.56 | 38,674,373.09 | 7,296,008.20 | ||
| 深圳汉力高技术陶瓷有限公司(ShenzhenHanecoTechnologiesCeramicsCo.,Ltd.*)[Note2] | |||||
| 深圳市南方汽车维修中心(NanfangAutomobile | |||||
*
TheEnglishnamesareforidentificationpurposeonly.
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| RepairingCenter*)[Note2] | |||||
| Subtotal | |||||
| Total | 123,640,955.57 | 38,674,373.09 | 17,874,805.32 | ||
(Continued)
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| Jointventures | ||||||
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | 47,490,740.78 | |||||
| 深圳市特力行投资有限公司(ShenzhenTellusXingInvestmentCo.,Ltd.*)[Note5] | 13,452,222.35 | |||||
| Subtotal | 60,942,963.13 | |||||
| Associates | ||||||
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 14,000,000.00 | 27,367,904.34 | ||||
| 深圳市汽车工业进出口有限公司(ShenzhenAutomobileIndustryImportandExportCo.,Ltd.*)[Note6] | 530,520.33 | |||||
| 深圳东风汽车有限公司 | ||||||
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| (ShenzhenDongfengAutomobileCo.,Ltd.*)[Note4] | ||||||
| 深圳市新永通油泵环保有限公司(ShenzhenXinyongtongOilPumpandEnvironmentalProtectionCo.,Ltd.*) | 127,836.59 | |||||
| 深圳市新永通咨询有限公司(ShenzhenXinyongtongConsultingCo.,Ltd.*) | 41,556.83 | |||||
| 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*)[Note3] | ||||||
| 深圳市新永通汽车服务有限公司(ShenzhenXinyongtongAutomobileServiceCo.,Ltd.*)[Note4] | ||||||
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*)[Note3] | ||||||
| 湖南昌阳实业股份有限公司(HunanChangyangIndustrialCo.,Ltd.*)[Note1] | 1,810,540.70 | |||||
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| 深圳捷成电子有限公司(ShenzhenJiechengElectronicCo.,Ltd.*)[Note1] | 3,225,000.00 | |||||
| 深圳先导新材料有限公司(ShenzhenXiandaoNewMaterialsCo.,Ltd.*)[Note1] | 4,751,621.62 | |||||
| 中国汽车工业深圳贸易公司(ChinaAutomobileShenzhenTradingCo.,Ltd.*)[Note1] | 400,000.00 | |||||
| 深圳通用标准件有限公司(ShenzhenGeneralStandardPartsCo.,Ltd.*)[Note1] | 500,000.00 | |||||
| 深圳中汽华南汽车销售公司(ZhongqiSouthChinaAutomobileSalesCo.,Ltd.*)[Note1] | 2,250,000.00 | |||||
| 深圳百力源电源有限公司(ShenzhenBailiyuanPowerCo.,Ltd.*)[Note1] | 1,320,000.00 | |||||
| 深圳市益民汽车贸易公司(ShenzhenYiminAutomobileTradingCo.,Ltd.*)[Note1] | 200,001.10 | |||||
*
TheEnglishnamesareforidentificationpurposeonly.
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| 深圳火炬火花塞工业公司(ShenzhenTorchSparkPlugIndustrialCo.,Ltd.*) | 17,849.20 | |||||
| Subtotal | 14,000,000.00 | 530,520.33 | 27,367,904.34 | 14,644,406.04 | ||
| 深圳汉力高技术陶瓷有限公司(ShenzhenHanecoTechnologiesCeramicsCo.,Ltd.*)[Note2] | 1,956,000.00 | |||||
| 深圳市南方汽车维修中心(NanfangAutomobileRepairingCenter*)[Note2] | 6,700,000.00 | |||||
| Subtotal | 8,656,000.00 | |||||
| Total | 14,000,000.00 | 530,520.33 | 88,310,867.47 | 23,300,406.04 | ||
Note1:Industrialandcommercialregistrationofthesecompanieshasbeenrevoked,andtheCompanyhasmadefullprovisionforimpairmentfortheselong-termequityinvestments.Note2:TheoperatingperiodofShenzhenHanecoTechnologiesCeramicsCo.,Ltd.ranfromSeptember21,1993toSeptember21,1998.TheoperatingperiodofShenzhenNanfangAutomobileRepairingCenterranfromJuly12,1994toJuly11,2002.Thesecompanieshaveceasedoperationformanyyearsandtheirindustrialandcommercialregistrationhasbeenrevokedbecausetheydidnotparticipateintheannualindustrialandcommercialinspection.TheCompanyisunabletoexerciseeffectivecontroloverthesecompanies.Therefore,theyarenotincludedintheconsolidatedscopeoftheCompany’sconsolidatedfinancialstatements.ThecarryingamountoftheCompany’sinvestmentinthesecompaniesiszero.Note3:Thebookbalancesoftheselong-termequityinvestmentshavebeenadjustedto0yuanthroughtherecognitionofprofitandlossadjustmentsunderequitymethod.Note4:Theequityofthecompanyheldbyushasbeentransferredinthecurrentperiod.Note5:Wehold51%oftheequityoftheCompany.Accordingtothearticlesofassociationofthecompany,therightsofvotingandnominateddirectorscannotbeunilaterallydecidedontherelevantdecisionsbythecompany'sshareholders'meetingandtheboardof
directors,andwedonotcontrolthecompany.Note6:AccordingtotheCASNo.42-Non-currentassetsheldforsale,disposalgroupanddiscontinuedoperations,thecompanyclassifiedthebalanceofCNY530,520.33oflong-termequityinvestmentinShenzhenautomobileindustryimportandExportCo.,Ltd.asheldforsaleassetsasofDecember31,2021,andwillnotbeaccountedwiththeequitymethodafterDecember31,2021.
5.11Otherequityinstrumentinvestments
(1)Detailsofotherequityinstrumentinvestments
| Items | 31Dec2021 | 31Dec2020 |
| Publicequityinstrumentinvestment | ||
| Non-publicequityinstrumentinvestment | 10,176,617.20 | 10,176,617.20 |
| Total | 10,176,617.20 | 10,176,617.20 |
(2)Detailsofnon-held-for-tradingequityinstrumentinvestments
| Items | Dividendincomerecognizedinthecurrentperiod | Accumulatedprofits | Accumulatedloss | Amountofothercomprehensiveincometransferredtoretainedearnings | Reasonsdesignatedasfairvaluemeasurementwithchangesincludedinothercomprehensiveincome | Reasonsfortransferringothercomprehensiveincomeintoretainedearnings |
| ChinaPerfectMachineryIndustryCorp.,Ltd. | Strategicinvestmentexpectedtobeheldforalongtime |
5.12Investmentproperty
(1)Investmentrealestatewithcostmeasurementmodel
| Items | Buildingsandstructures | Landuseright | Total |
| Cost | |||
| Openingbalance | 639,235,625.45 | 49,079,520.00 | 688,315,145.45 |
| Increase | 9,481,050.45 | 9,481,050.45 | |
| 1)Acquisition | 8,312,377.03 | 8,312,377.03 |
| Items | Buildingsandstructures | Landuseright | Total |
| 2)Others | 1,168,673.42 | 1,168,673.42 | |
| Decrease | 2,719,453.24 | 2,719,453.24 | |
| 1)Disposal | |||
| 2)Others | 2,719,453.24 | 2,719,453.24 | |
| Closingbalance | 645,997,222.66 | 49,079,520.00 | 695,076,742.66 |
| Accumulateddepreciationandamortization | |||
| Openingbalance | 117,837,641.96 | 2,230,887.36 | 120,068,529.32 |
| Increase | 22,509,475.12 | 1,115,443.68 | 23,624,918.80 |
| 1)Accrual | 18,688,549.50 | 1,115,443.68 | 19,803,993.18 |
| 2)Transferinfromfixedassets | 3,820,925.62 | 3,820,925.62 | |
| Decrease | |||
| 1)Transferouttofixedassets | |||
| Closingbalance | 140,347,117.08 | 3,346,331.04 | 143,693,448.12 |
| Provisionforimpairment | |||
| Carryingamount | |||
| Closingbalance | 505,650,105.58 | 45,733,188.96 | 551,383,294.54 |
| Openingbalance | 521,397,983.49 | 46,848,632.64 | 568,246,616.13 |
(2)Investmentpropertywithcertificateoftitlesbeingunsettled
| Items | Carryingamount | Reasonsforunsettlement |
| 中核办公楼(Zhongheofficebuilding) | 4,414,645.05 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| 笋岗12栋(Building12,Sungang) | 12,588.53 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| 笋岗12栋商铺(Building12stores,Sungang) | 38,916.87 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| Subtotal | 4,466,150.45 |
5.13Fixedassets
(1)Detailsbycategory
| Items | 31Dec2021 | 31Dec2020 |
| Fixedassets | 109,438,198.23 | 119,136,917.91 |
| Liquidationoffixedassets | ||
| Total | 109,438,198.23 | 119,136,917.91 |
(2)Fixedassets(a)Detailsoffixedassets
| Items | Buildingsandstructures | Generalequipment | Transportfacilities | Electronicequipment | Officeandotherequipment | Total |
| Cost | ||||||
| Openingbalance | 281,403,065.30 | 22,284,034.71 | 5,177,216.34 | 10,901,047.18 | 6,719,081.84 | 326,484,445.37 |
| Increase | 1,765,488.74 | 39,012.22 | 1,339,701.70 | 1,512,011.35 | 1,175,130.83 | 5,831,344.84 |
| 1)Acquisition | 1,765,488.74 | 39,012.22 | 1,339,701.70 | 1,512,011.35 | 1,175,130.83 | 5,831,344.84 |
| Decrease | 8,312,377.03 | 96,814.64 | 680,995.39 | 68,253.17 | 43,258.38 | 9,201,698.61 |
| 1)Disposal/scrap | 96,814.64 | 680,995.39 | 68,253.17 | 43,258.38 | 889,321.58 | |
| 2)Transferouttoinvestmentproperty | 8,312,377.03 | 8,312,377.03 | ||||
| Closingbalance | 274,856,177.01 | 22,226,232.29 | 5,835,922.65 | 12,344,805.36 | 7,850,954.29 | 323,114,091.60 |
| Accumulateddepreciation | ||||||
| Openingbalance | 181,251,255.82 | 8,561,758.35 | 3,426,528.00 | 7,601,240.63 | 2,261,291.60 | 203,102,074.40 |
| Increase | 7,365,391.84 | 1,245,912.67 | 502,073.76 | 863,489.16 | 708,998.79 | 10,685,866.22 |
| 1)Accrual | 7,365,391.84 | 1,245,912.67 | 502,073.76 | 863,489.16 | 708,998.79 | 10,685,866.22 |
| Decrease | 3,820,925.62 | 87,133.17 | 372,979.05 | 38,164.44 | 38,298.03 | 4,357,500.31 |
| 1)Disposal/scrap | 87,133.17 | 372,979.05 | 38,164.44 | 38,298.03 | 536,574.69 | |
| 2)Transferouttoinvestmentproperty | 3,820,925.62 | 3,820,925.62 | ||||
| Closingbalance | 184,795,722.04 | 9,720,537.85 | 3,555,622.71 | 8,426,565.35 | 2,931,992.36 | 209,430,440.31 |
| Items | Buildingsandstructures | Generalequipment | Transportfacilities | Electronicequipment | Officeandotherequipment | Total |
| Provisionforimpairment | ||||||
| Openingbalance | 3,836,768.43 | 319,675.11 | 6,165.00 | 17,984.71 | 64,859.81 | 4,245,453.06 |
| Increase | ||||||
| Decrease | ||||||
| Closingbalance | 3,836,768.43 | 319,675.11 | 6,165.00 | 17,984.71 | 64,859.81 | 4,245,453.06 |
| Carryingamount | ||||||
| Closingbalance | 86,223,686.54 | 12,186,019.33 | 2,274,134.94 | 3,900,255.30 | 4,854,102.12 | 109,438,198.23 |
| Openingbalance | 96,315,041.05 | 13,402,601.25 | 1,744,523.34 | 3,281,821.84 | 4,392,930.43 | 119,136,917.91 |
(b)Fixedassetsrented-outunderoperatingleases
| Items | Carryingamount |
| Buildingsandstructures | 64,952,150.09 |
| Subtotal | 64,952,150.09 |
(c)Fixedassetswithcertificateoftitlesbeingunsettled
| Items | Carryingamount | Reasonsforunsettlement |
| YongtongBuilding | 28,158,013.51 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| AutomobileBuilding | 14,626,048.69 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| TellusBuildingundergroundparkinglot | 8,477,976.20 | Unabletoapplyforcertificateoftitlesforparkinglot |
| Third–FifthfloorofPlant1,Plant2,andPlant3onTaoyuanRoad | 3,265,867.51 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| TellusBuildingtransferstory | 1,426,541.48 | Unabletoapplyforcertificateoftitles |
| Building16ofTaohuaYuan | 1,252,104.42 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| Items | Carryingamount | Reasonsforunsettlement |
| ShuibeiZhongtianComplexBuilding | 799,280.82 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| FirstfloorofcommercialandresidentialbuildinginBao’an | 817,289.73 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| Warehouse | 795,291.01 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| Warehouseoftradedepartment | 63,803.65 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| SongquanApartment(Mix) | 10,086.79 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| HostelonNorthRenminRoad | 5,902.41 | Duetohistoricalreasons,certificateoftitleshasnotbeenappliedfor. |
| Subtotal | 59,698,206.22 |
5.14Constructioninprogress
（
）Detailsbycategory
| Projects | 31Dec2021 | 31Dec2020 |
| Constructioninprogress | 210,197,546.72 | 101,740,485.48 |
| Engineermaterials | ||
| Total | 210,197,546.72 | 101,740,485.48 |
Theconstructioninprogressattheendoftheperiodincreasedby106.60%comparedwiththatatthebeginningoftheperiod,mainlyduetotheincreaseinconstructioninvestmentofTellusDiamondTradingbuilding.
（2）Constructioninprogress(a)details
| Projects | 31Dec2021 | 31Dec2020 | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| 特力金钻交易大厦(Teli | 210,072,702.40 | 210,072,702.40 | 100,252,309.72 | 100,252,309.72 | ||
| Projects | 31Dec2021 | 31Dec2020 | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| DiamondTradingBuilding) | ||||||
| 05地块(Plot05) | 1,391,331.44 | 1,391,331.44 | ||||
| 其他工程(Otherconstruction) | 124,844.32 | 96,844.32 | 96,844.32 | |||
| Total | 210,197,546.72 | 210,197,546.72 | 101,740,485.48 | 101,740,485.48 | ||
(b)changesonsignificantconstructioninprogress
| Projects | Budgets | Openingbalance | Increase | Transferredtofixedassets | Otherdecrease | Closingbalance |
| 特力金钻交易大厦(TeliDiamondTradingBuilding) | 515,460,000 | 100,252,309.72 | 109,820,392.68 | 210,072,702.40 | ||
| Total | 100,252,309.72 | 109,820,392.68 | 210,072,702.40 |
（Continued）
| Projects | Accumulatedinvestmenttobudget(%) | Completionpercentage(%) | Accumulatedamountofborrowingcostcapitalization | Amountofborrowingcostcapitalizationincurrentperiod | Annualcapitalizationrate(%) | Fundsource |
| 特力金钻交易大厦(TeliDiamondTradingBuilding) | 40.75 | 40.75 | 1,855,456.85 | 1,855,456.85 | 4.20% | Self-ownedfund/Bankloan |
| Total | 1,855,456.85 | 1,855,456.85 |
5.15RightofuseAssets
| Projects | Buildingsandstructures | Total |
| 1.Cost |
| Projects | Buildingsandstructures | Total |
| Openingbalance(2020-12-31) | — | — |
| Changesinaccountingpolicies | 9,894,351.89 | 9,894,351.89 |
| Openingbalance(2021-01-01) | 9,894,351.89 | 9,894,351.89 |
| Increase | 418,841.07 | 418,841.07 |
| Decrease | ||
| Closingbalance(2021-12-31) | 10,313,192.96 | 10,313,192.96 |
| 2.Accumulateddepreciation | ||
| Openingbalance(2020-12-31) | — | — |
| Changesinaccountingpolicies | ||
| Openingbalance(2021-01-01) | ||
| Increase | 2,976,277.13 | 2,976,277.13 |
| Decrease | ||
| Closingbalance(2021-12-31) | 2,976,277.13 | 2,976,277.13 |
| 3.Provisionforimpairment | ||
| 4.Carryingamount | ||
| Closingbalance（2021-12-31） | 7,336,915.83 | 7,336,915.83 |
| Openingbalance（2021-01-01） | 9,894,351.89 | 9,894,351.89 |
Thedepreciationamountoftherightofuseassetsin2021isCNY2,976,277.13,ofwhichthedepreciationexpenseincludedintheoperatingcostisCNY2,976,277.13.
5.16Intangibleassets
(1)Detailsonintangibleassets
| Items | Landuseright | Trademarks | Software | Total |
| Cost | ||||
| Openingbalance | 50,661,450.00 | 128,500.00 | 4,157,254.20 | 54,947,204.20 |
| Increase | 1,313,119.46 | 1,313,119.46 | ||
| 1)Acquisition | 1,313,119.46 | 1,313,119.46 | ||
| Decrease |
| Items | Landuseright | Trademarks | Software | Total |
| 1)Disposal | ||||
| Closingbalance | 50,661,450.00 | 128,500.00 | 5,470,373.66 | 56,260,323.66 |
| Accumulatedamortization | ||||
| Openingbalance | 1,790,459.00 | 94,972.64 | 1,434,099.35 | 3,319,530.99 |
| Increase | 1,077,443.16 | 4,069.92 | 2,269,781.31 | 3,351,294.39 |
| 1)Accrual | 1,077,443.16 | 4,069.92 | 2,269,781.31 | 3,351,294.39 |
| Decrease | ||||
| 1)Disposal | ||||
| Closingbalance | 2,867,902.16 | 99,042.56 | 3,703,880.66 | 6,670,825.38 |
| Provisionforimpairment | ||||
| Carryingamount | ||||
| Closingbalance | 47,793,547.84 | 29,457.44 | 1,766,493.00 | 49,589,498.28 |
| Openingbalance | 48,870,991.00 | 33,527.36 | 2,723,154.85 | 51,627,673.21 |
(2)AsofDecember31,2021,thelanduserightwithbookvalueofCNY47,793,547.84ofthecompanyhasbeenmortgagedtoBankofChinaasthemortgageofbankloan.
5.17Deferredcharges
| Items | Openingbalance | Increase | Amortization | Otherdecreases | Closingbalance |
| Decorationcosts | 30,714,879.22 | 5,291,471.73 | 7,323,714.29 | 28,682,636.66 | |
| Total | 30,714,879.22 | 5,291,471.73 | 7,323,714.29 | 28,682,636.66 |
5.18Deferredtaxassets、DeferredTaxLiabilities
(1)Deferredtaxassetsbeforeoffset
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredtaxassets | Deductibletemporarydifference | Deferredtaxasset | |
| Provisionforcredit | 33,998,204.09 | 8,499,551.03 | 33,995,288.38 | 8,498,822.10 |
| Items | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredtaxassets | Deductibletemporarydifference | Deferredtaxasset | |
| impairment | ||||
| Total | 33,998,204.09 | 8,499,551.03 | 33,995,288.38 | 8,498,822.10 |
(2)Deferredtaxliabilitiesbeforeoffset
| Items | Closingbalance | Openingbalance | ||
| Taxabletemporarydifference | Deferredtaxliabilities | Taxabletemporarydifference | Deferredtaxliabilities | |
| Taxabletemporarydifference | 3,852,181.96 | 963,045.49 | ||
| Total | 3,852,181.96 | 963,045.49 | ||
(3)Detailsofunrecognizeddeferredtaxassets
| Items | Closingbalance | Openingbalance |
| Deductibletemporarydifference | 126,073,843.71 | 126,380,054.13 |
| Deductiblelosses | 19,228,072.00 | 27,588,656.95 |
| Subtotal | 145,301,915.71 | 153,968,711.08 |
(4)Maturityyearsofdeductiblelossesofunrecognizeddeferredtaxassets
| Maturityyears | Closingbalance | Openingbalance | Remarks |
| Year2021 | 513,356.86 | ||
| Year2022 | 330,146.48 | 4,702,701.91 | |
| Year2023 | 401,294.00 | 5,238,151.51 | |
| Year2024 | 497,832.28 | 7,380,279.17 | |
| Year2025 | 9,182,475.07 | 9,754,167.50 | |
| Year2026 | 8,816,324.17 | ||
| Subtotal | 19,228,072.00 | 27,588,656.95 |
5.19Othernon-currentassets
| Items | 31Dec2021 | 31Dec2020 |
| Prepaymentforengineeringequipment | 56,169,049.73 | 49,478,268.29 |
| VATinputtaxtobecertified | 12,204,839.26 | 6,415,199.70 |
| Others | 100,000.00 | 100,000.00 |
| Total | 68,473,888.99 | 55,993,467.99 |
5.20Accountspayable
(1)Detailsbynature
| Items | Closingbalance | Openingbalance |
| Paymentforgoodsandservices | 4,068,460.06 | 5,130,983.91 |
| Paymentforengineeringequipment | 63,339,302.97 | 71,452,182.62 |
| Total | 67,407,763.03 | 76,583,166.53 |
(2)Significantaccountspayablewithageoveroneyear
| Items | Closingbalance | Reasonsforunsettlement |
| 深圳市英龙建安（集团）有限公司(ShenzhenYinglongJian’an(Group)Co.,Ltd.?) | 29,695,887.90 | Theprojecthasnotbeensettled. |
| 深圳市特发地产有限公司(ShenzhenSDGRealEstateCo.,Ltd.*) | 6,054,855.46 | Norepaymentfromrelatedcompany. |
| 深圳市易诺建设工程有限公司(ShenzhenYinuoConstructionEngineeringCo.,Ltd.*) | 3,555,095.22 | Theprojecthasnotbeensettled. |
| 深圳市萃禄珠宝首饰有限公司(ShenzhenCuiluJewelryCo.,Ltd*) | 1,120,000.00 | Norepayment. |
| Subtotal | 40,425,838.58 |
5.21Advancefromcustomers
| Items | Closingbalance | Openingbalance |
| Rental | 1,827,827.28 | 2,403,580.47 |
?
TheEnglishnamesareforidentificationpurposeonly.
| Items | Closingbalance | Openingbalance |
| Total | 1,827,827.28 | 2,403,580.47 |
5.22ContractLiability
| Items | Closingbalance | Openingbalance |
| Itemreceivedinadvanceforgoods | 17,959,187.61 | 17,833,476.50 |
| Itemreceivedinadvanceforservices | 3,100,123.57 | 1,155,151.63 |
| Total | 21,059,311.18 | 18,988,628.13 |
5.23Employeebenefitspayable
(1)Employeebenefitspayable
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Short-termemployeebenefits | 28,365,685.21 | 69,844,794.94 | 59,316,882.40 | 38,893,597.75 |
| Post-employmentbenefits-definedcontributionplan | 5,114,809.95 | 5,114,809.95 | ||
| Terminationbenefits | 510,403.00 | 510,403.00 | ||
| Total | 28,365,685.21 | 75,470,007.89 | 64,942,095.35 | 38,893,597.75 |
(2)Detailsofshort-termemployeebenefits
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Wage,bonus,allowanceandsubsidy | 28,150,871.60 | 61,084,459.02 | 50,950,437.39 | 38,284,893.23 |
| Employeewelfarefund | 1,499,435.97 | 1,089,191.72 | 410,244.25 | |
| Socialinsurancepremium | 2,106,635.45 | 2,106,635.45 | ||
| Including:Medicarepremium | 1,900,062.29 | 1,900,062.29 | ||
| Occupationalinjuriespremium | 35,739.44 | 35,739.44 | ||
| Maternitypremium | 166,333.56 | 166,333.56 | ||
| Otherpremium | 4,500.16 | 4,500.16 |
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Housingprovidentfund | 3,634,324.48 | 3,634,324.48 | ||
| Tradeunionfundandemployeeeducationfund | 214,813.61 | 1,268,308.65 | 1,284,661.99 | 198,460.27 |
| Non-monetarybenefits | 251,631.37 | 251,631.37 | ||
| Subtotal | 28,365,685.21 | 69,844,794.94 | 59,316,882.40 | 38,893,597.75 |
(3)Detailsofdefinedcontributionplan
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Basicendowmentinsurancepremium | 5,062,605.14 | 5,062,605.14 | ||
| Unemploymentinsurancepremium | 52,204.81 | 52,204.81 | ||
| Subtotal | 5,114,809.95 | 5,114,809.95 |
(4)Terminationbenefits
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Terminationbenefits | 510,403.00 | 510,403.00 | ||
| Subtotal | 510,403.00 | 510,403.00 |
Thepayrollpayableattheendoftheperiodincreasedby37.11%comparedwiththatatthebeginningoftheperiod,mainlyduetotheincreaseofaccruedbonus.
5.24Taxesandfeespayable
| Items | Closingbalance | Openingbalance |
| VAT | 808,520.40 | 1,003,221.74 |
| Excisetax | 7,964.60 | |
| Urbanmaintenanceandconstructiontax | 105,706.61 | 79,176.17 |
| Educationsurcharge | 47,558.24 | 43,391.83 |
| Localeducationsurcharge | 31,705.50 | 28,927.88 |
| Enterpriseincometax | 41,276,334.18 | 13,891,223.58 |
| Individualincometaxwithheldfortaxauthorities | 512,260.46 | 281,053.06 |
| Items | Closingbalance | Openingbalance |
| Landappreciationtax | 5,362,682.64 | 5,362,682.64 |
| Landusetax | 26,459.98 | 26,459.98 |
| Others | 342,907.84 | 346,017.44 |
| Total | 48,522,100.45 | 21,062,154.32 |
5.25Otherpayables
(1)Details
| Items | Closingbalance | Openingbalance |
| Interestpayable | ||
| Dividendpayable | 46,295.65 | |
| Otherpayable | 112,617,963.65 | 158,617,678.97 |
| Total | 112,617,963.65 | 158,663,974.62 |
(3)Otherpayables(a)Otherpayableslistedbynature
| Items | 31Dec2021 | 31Dec2020 |
| Depositassecurity | 41,657,964.73 | 37,603,031.07 |
| Currentaccountsbetweenrelatedparties | 24,146,524.51 | 76,457,197.82 |
| Accruals | 15,417,939.62 | 15,300,654.81 |
| Temporaryreceiptspayable | 31,395,534.79 | 29,256,795.27 |
| Total | 112,617,963.65 | 158,617,678.97 |
(b)Otherimportantaccountspayablewithanagingofmorethanoneyearattheendoftheperiod
| Items | 31Dec2021 | Reasonsfornonrepaymentorcarryforward |
| 深圳市特发集团有限公司(ShenzhenSDGGroupCo.,Ltd.*) | 17,383,655.94 | Norepaymentfromrelatedcompany |
| 香港裕嘉投资有限公司(HongKongYujiaInvestmentCo.,Ltd.*) | 1,961,673.06 | Norepaymentfromrelatedcompany |
| Total | 19,345,329.00 |
5.26Non-currentliabilitiesduewithinoneyear
| Items | 31Dec2021 | 31Dec2020 |
| Leaseliabilitiesduewithinoneyear | 3,021,452.25 | |
| Total | 3,021,452.25 |
5.27OtherCurrentLiability
| Items | 31Dec2021 | 31Dec2020 |
| OutputVATonpending | 2,367,994.70 | 2,237,573.19 |
| Total | 2,367,994.70 | 2,237,573.19 |
5.28Long-termborrowings
(1)Categoriesonlong-termborrowings
| Items | Closingbalance | Openingbalance | Interestraterange(2021) |
| Mortgagedborrowings | 86,875,874.39 | 11,171,759.33 | 4.20% |
| Subtotal | 86,875,874.39 | 11,171,759.33 | 4.20% |
| Less:Long-termborrowingsduewithin1year | |||
| Total | 86,875,874.39 | 11,171,759.33 |
(2)RemarksonCategoriesonlong-termborrowingsThelong-termborrowingsattheendoftheperiodarethefixedassetsloanofthenewlyaddedTellusJinzuanTradingBuildinginthecurrentperiod,withaloantermof15years.
5.29Leaseliabilities
| Items | Closingbalance | Openingbalance |
| Leasepayments | 7,976,926.21 | |
| Less:Unrecognizedfinancingexpenses | 480,930.87 | 11,311.96 |
| Subtotal | 7,495,995.34 | |
| Less:Leaseliabilitiesduewithinoneyear | 3,021,452.25 |
| Items | Closingbalance | Openingbalance |
| Total | 4,474,543.09 |
5.30Long-termpayables
| Items | Closingbalance | Openingbalance |
| Employeehousingdeposit | 3,908,848.40 | 3,908,848.40 |
| Appropriationfortechnicalinnovationproject | 11,311.96 | 11,311.96 |
| Total | 3,920,160.36 | 3,920,160.36 |
5.31Accruedliabilities
| Items | 31Dec2021 | 31Dec2020 | Reasonsforbalance |
| Pendinglawsuit | 268,414.80 | 268,414.80 | |
| Total | 268,414.80 | 268,414.80 |
5.32Deferredincome
(1)Deferredincome
| Items | 31Dec2020 | Increase | Decrease | 31Dec2021 | Reasonsforbalance |
| Governmentgrants | 131,102.38 | 12,090,000.00 | 1,985,771.17 | 10,235,331.21 | Governmentgrantsrelatedtoassets |
| Total | 131,102.38 | 12,090,000.00 | 1,985,771.17 | 10,235,331.21 |
(2)Detailsofgovernmentgrants
| Items | 31Dec2020 | Increase | Grantsincludedintoprofitorloss/offsettingrelevantcost | 31Dec2021 | Relatedtoassets/income |
| SubsidyfromFutianDistrictOldElevatorRenovationWorkingGroupforelevatorrenewal | 131,102.38 | 19,914.29 | 111,188.09 | Relatedtoassets |
| Items | 31Dec2020 | Increase | Grantsincludedintoprofitorloss/offsettingrelevantcost | 31Dec2021 | Relatedtoassets/income |
| LuohuDistrict2021specialfundforindustrialtransformationandupgrading-IndustrialServicePlatformProject | 5,000,000.00 | 1,488,178.80 | 3,511,821.20 | Relatedtoassets/income | |
| SpecialfundforindustrialtransformationandupgradingofLuohuDistrictin2021-supportsubsidyforEnvironmentalProtectionBuildings | 2,500,000.00 | 135,869.55 | 2,364,130.45 | Relatedtoassets | |
| SubsidyincomeofconsumptionpromotionsupportprojectsofShenzhenMunicipalBureauofCommercein2020 | 4,590,000.00 | 341,808.53 | 4,248,191.47 | Relatedtoassets | |
| Subtotal | 131,102.38 | 12,090,000.00 | 1,985,771.17 | 10,235,331.21 |
Thedeferredincomeofthecurrentperiodincreasedby7707.13%,whichisduetotheincreaseofgovernmentsubsidyfundsreceivedbythecompany.
5.33Sharecapital
| Items | Openingbalance | Movements | ClosingBalance |
| Issueofnewshares | Bonusshares | Reservetransferredtoshares | Others | Subtotal | |||
| Totalshares | 431,058,320.00 | 431,058,320.00 |
5.34Capitalreserves
| Items | 31Dec2020 | Increase | Decrease | 31Dec2021 |
| Capitalpremium(Sharepremium) | 425,768,053.35 | 425,768,053.35 | ||
| Othercapitalreserve | 5,681,501.16 | 5,681,501.16 | ||
| Total | 431,449,554.51 | 431,449,554.51 |
5.35Othercomprehensiveincome
| Items | Openingbalance | Currentperiodcumulative | Closingbalance | |||||
| Currentperiodcumulativebeforeincometax | Less:OCIcarriedforwardtransferredtoprofitorloss | Less:OCIcarriedforwardtransferredtoretainedearnings | Less:incometax | Attributabletoparentcompany | Attributabletonon-controllingshareholders | |||
| OCIthatcannotbereclassifiedintoprofitorloss | ||||||||
| OCItobereclassifiedsubsequentlytoprofitorloss | 26,422.00 | 26,422.00 | ||||||
| Including:Othercomprehensiveincometobetransferredtoprofitorlossunderequitymethod | 26,422.00 | 26,422.00 | ||||||
| Total | 26,422.00 | 26,422.00 | ||||||
5.36Surplusreserve
| Items | Openingbalance | Increase | Decrease | Closingbalance |
| Statutorysurplusreserve | 23,848,485.62 | 2,697,994.47 | 26,546,480.09 | |
| Total | 23,848,485.62 | 2,697,994.47 | 26,546,480.09 |
Theincreaseofsurplusreserveinthecurrentperiodisthatthecompanywithdrawsthestatutorysurplusreserveat10%ofthecurrentnetprofitinaccordancewiththerelevantprovisionsoftheCompanyLawandthearticlesofassociation.
5.37Retainedearnings
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Balancebeforeadjustmentattheendofprecedingperiod | 424,141,893.34 | 387,423,510.78 |
| Add:Increaseduetoadjustment(orless:decrease) | ||
| Openingbalanceafteradjustment | 424,141,893.34 | 387,423,510.78 |
| Add:Netprofitattributabletoownersoftheparentcompany | 131,020,764.38 | 57,663,828.89 |
| Less:Appropriationofstatutorysurplusreserve | 2,697,994.47 | 2,840,996.89 |
| Ordinarysharedividendpayable | 8,621,166.40 | 18,104,449.44 |
| Closingbalance | 543,843,496.85 | 424,141,893.34 |
5.38Operatingrevenue/Operatingcost
| Items | 2021 | 2020 | ||
| Revenue | Costsofsales | Revenue | Costsofsales | |
| Principalactivities | 498,882,949.81 | 350,429,078.94 | 416,306,597.14 | 316,547,493.71 |
| Otheractivities | 9,637,076.37 | 2,500,636.87 | 8,112,606.20 | 2,713,707.88 |
| Total | 508,520,026.18 | 352,929,715.81 | 424,419,203.34 | 319,261,201.59 |
(a)Revenuefromprincipalactivities(byindustryorbusiness)
| Industry(business) | 2021 | 2020 | ||
| Revenue | Costsofsales | Revenue | Costsofsales | |
| Industry(business) | 2021 | 2020 | ||
| Revenue | Costsofsales | Revenue | Costsofsales | |
| AutoSales | 194,373,092.47 | 184,509,794.34 | 204,928,883.35 | 191,680,818.07 |
| AutoMaintenance&Inspection | 48,568,032.68 | 38,760,088.93 | 41,913,088.24 | 32,521,898.98 |
| LeaseandService | 196,537,676.90 | 71,382,659.79 | 134,609,167.52 | 57,587,615.11 |
| JewelrySalesandService | 59,404,147.76 | 55,776,535.88 | 34,855,458.03 | 34,757,161.55 |
| Total | 498,882,949.81 | 350,429,078.94 | 416,306,597.14 | 316,547,493.71 |
(b)Revenuefromprincipalactivities(bysalesmodel)
| Model | 2021 | 2020 | ||
| Revenue | Costsofsales | Revenue | Costsofsales | |
| DirectSales | 498,882,949.81 | 350,429,078.94 | 416,306,597.14 | 316,547,493.71 |
| AgentSales | ||||
| Total | 498,882,949.81 | 350,429,078.94 | 416,306,597.14 | 316,547,493.71 |
(c)Revenuefromprincipalactivities(byregion)
| Region | 2021 | 2020 | ||
| Revenue | Costsofsales | Revenue | Costsofsales | |
| Shenzhen | 498,882,949.81 | 350,429,078.94 | 399,343,292.94 | 300,537,120.26 |
| Sichuan | 16,963,304.20 | 16,010,373.45 | ||
| Total | 498,882,949.81 | 350,429,078.94 | 416,306,597.14 | 316,547,493.71 |
(d)Revenuebreakdowninformation
| Items | 2021 | ||||
| AutoSales | AutoMaintenance&Inspection | LeaseandService | JewelrySalesandService | Total | |
| Byrevenuerecognitiontime | |||||
| Goods(transferred | 194,373,092.47 | 48,568,032.68 | 52,274,733.85 | 295,215,859.00 | |
| Items | 2021 | ||||
| AutoSales | AutoMaintenance&Inspection | LeaseandService | JewelrySalesandService | Total | |
| atacertainpointoftime) | |||||
| Service(providedwithinacertainperiodoftime) | 196,537,676.90 | 7,129,413.91 | 203,667,090.81 | ||
| Total | 194,373,092.47 | 48,568,032.68 | 196,537,676.90 | 59,404,147.76 | 498,882,949.81 |
5.39TaxesandSurcharges
| Items | 2021 | 2020 |
| Cityconstructiontax | 882,815.10 | 588,739.23 |
| Educationalsurcharge | 584,610.52 | 236,564.31 |
| Localeducationalsurcharge | 33,729.65 | 157,709.54 |
| Resourcetax | 434,087.33 | 386,763.32 |
| Propertytax | 4,644,257.53 | 2,376,613.48 |
| Landusetax | 358,823.13 | 352,296.47 |
| Vehicleandvesselusagetax | 5,772.92 | 5,791.06 |
| Total | 6,944,096.18 | 4,104,477.41 |
Taxesandsurchargesinthisyearincreasedby69.18%overthepreviousyear,mainlyduetothecorrespondingincreaseinvalue-addedtaxandthereductionofrealestatetaxinthepreviousyearbutnotinthisyear.
5.40SalesExpenses
| Items | 2021 | 2020 |
| Employeebenefits | 13,380,126.45 | 8,887,537.69 |
| Advertisingpromotionexpense | 2,129,375.71 | 2,138,496.21 |
| Depreciationandamortization | 4,745,548.04 | 2,001,011.81 |
| Utility | 1,052,593.95 | 1,065,923.75 |
| Materialconsumption | 149,556.88 | 65,067.01 |
| Officeexpense | 460,348.34 | 675,305.56 |
| Businesshospitality | 437,073.34 | 331,419.91 |
| Other | 4,823,552.32 | 2,550,370.49 |
| Total | 27,178,175.03 | 17,715,132.43 |
Thesalesexpensesofthisyearincreasedby53.42%overthepreviousyear,mainlyduetotheestablishmentofthesubsidiaryShenzhenjewelryindustryServiceCo.,Ltd.inAugust2020,withayear-on-yearincreaseof8months’expenses;Assetdepreciationandamortizationexpensesincreased.
5.41GeneralandAdministrativeExpenses
| Items | 2021 | 2020 |
| Employeebenefits | 34,350,624.60 | 25,671,670.92 |
| Consultationandserviceexpenses | 5,599,656.73 | 7,196,540.38 |
| Depreciationandamortization | 3,658,728.08 | 3,107,517.18 |
| Officeexpenses | 534,671.21 | 1,574,023.34 |
| Businesshospitalityexpenses | 411,497.26 | 280,305.45 |
| Advertisingpromotionexpenses | 206,020.49 | 911,387.33 |
| Travelexpenses | 107,532.98 | 127,650.74 |
| Other | 2,282,585.34 | 1,115,148.73 |
| Total | 47,151,316.69 | 39,984,244.07 |
5.42Financialcosts
| Items | 2021 | 2020 |
| InterestExpenses | 2,253,915.94 | 1,042,694.54 |
| Less:interestincome | 6,538,484.64 | 4,473,218.76 |
| Exchangegainsandlosses | -236,196.60 | -132,748.11 |
| Other | 249,883.56 | 257,388.65 |
| Total | -4,270,881.74 | -3,305,883.68 |
5.43OtherIncome
| Items | 2021 | 2020 | Relatedtoassets/income |
| 1.Governmentgrantrecognizedin | 2,923,779.58 | 1,522,079.42 |
| Items | 2021 | 2020 | Relatedtoassets/income |
| otherincome | |||
| Including:Governmentgrantrelatedtodeferredincome(relatedtoassets) | 1,985,771.17 | 8,297.62 | Relatedtoassets/income |
| Governmentgrantdirectlyrecognizedincurrentprofitorloss | 938,008.41 | 1,513,781.80 | Relatedtoincome |
| 2.Othersrelatedtodailyoperationactivitiesandrecognizedinotherincome | 46,275.77 | 44,839.26 | |
| Including:Chargesofwithholdingindividualincometax | 46,275.77 | 44,839.26 | |
| Total | 2,970,055.35 | 1,566,918.68 |
5.44InvestmentIncome
| Items | 2021 | 2020 |
| Investmentincomefromlong-termequityinvestmentsunderequitymethod | 17,874,805.32 | 14,962,411.52 |
| Gainsondisposaloflong-termequityinvestments | 66,495,901.16 | 1 |
| Investmentincomefromfinancialassetsatfairvaluethroughprofitorlossduringholdingperiod | 9,409,600.29 | 8,495,993.07 |
| Including:financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses | 9,409,600.29 | 8,495,993.07 |
| Investmentinotherequityinstruments | ||
| Total | 93,780,306.77 | 23,458,405.59 |
Theannualinvestmentincomeincreasedby299.77%overthepreviousyear,mainlyduetotheimpactofthecompany'sdisposalofthelong-termequityinvestmentofShenzhenDongfengMotorCo.,Ltd.
5.45GainsfromChangesinFairValues
| Sourcesofgainsonchangesinfairvalue | 2021 | 2020 |
| Held-for-tradingfinancialassets | 663,932.88 | 316,475.19 |
| Including:Changesinfairvalueofdesignatedas | 663,932.88 | 316,475.19 |
| held-for-tradingfinancialassets | ||
| Total | 663,932.88 | 316,475.19 |
Thegainsfromchangesinfairvaluethisyearincreasedby109.79%overthepreviousyear,mainlyduetotheincreaseinthebalanceofunrecoveredtradingfinancialassetsattheendoftheyearandthecorrespondingincreaseinchangesinfairvalue.
5.46ImpairmentLossofCredit
| Items | 2021 | 2020 |
| Baddebtofnotesreceivable | 22,957.54 | 934,154.48 |
| Baddebtofotherreceivables | 15,171.74 | 594,593.53 |
| Total | 38,129.28 | 1,528,748.01 |
Thisyear'screditimpairmentlossdecreasedby97.51%comparedwiththepreviousyear,mainlyduetothereversaloftheoriginalbaddebtprovisionduetotherecoveryofreceivablesinthepreviousyearandotherreasons.
5.47ImpairmentLossofAsset
| Items | 2021 | 2020 |
| Impairmentofinventories | -812,607.69 | -23,818.95 |
| Otherimpairmentlossofassets | ||
| Total | -812,607.69 | -23,818.95 |
Thisyear'sassetimpairmentlossdecreasedby3311.60%comparedwiththepreviousyear,mainlyduetotheprovisionforinventoryfallingpriceforthepartwherethenetrealizablevalueoftheinventoryvehiclesattheendoftheperiodislowerthanthebookvalue.
5.48Gains/(losses)fromDisposalofAssets
| Items | 2021 | 2020 |
| Gains/(losses)fromdisposaloffixedassets,constructioninprogress,productivebiologicalassetsandintangibleassetsnotclassifiedasheldforsale | 158,228.49 | |
| Including:Fixedassets | 158,228.49 | |
| Total | 158,228.49 |
5.49Non-operatingIncome
| Items | 2021 | 2020 | Recognizedincurrentextraordinarygainsand |
| losses | |||
| Gainsfromdamageandretirementofnon-currentassets | 132.74 | 2,919.56 | 132.74 |
| Gainsfrominabilitytopaytheproceeeds | 497,187.91 | ||
| Other | 767,922.91 | 2,789,050.65 | 767,922.91 |
| Total | 768,055.65 | 3,289,158.12 | 768,055.65 |
5.50Non-operatingExpenses
| Items | 2021 | 2020 | Recognizedincurrentextraordinarygainsandlosses |
| Lossfromdamageandretirementofnon-currentassets | 15,256.30 | 28,814.21 | 15,256.30 |
| Finesandexpensesfrombreachofcontract | 22,246.85 | 43,127.49 | 22,246.85 |
| Other | 20,810.00 | ||
| Total | 37,503.15 | 92,751.70 | 37,503.15 |
5.51IncomeTaxExpenses(a)Detailsofincometaxexpenses
| Items | 2021 | 2020 |
| Currenttaxexpenses | 44,415,716.95 | 16,683,064.79 |
| Deferredtaxexpenses | 962,316.56 | 160,140.29 |
| Previoustaxexpenses | -1,314,362.80 | -445,268.53 |
| Total | 44,063,670.71 | 16,397,936.55 |
(b)Reconciliationofaccountingprofitandincometaxexpenses
| Items | 2021 | 2020 |
| Profitbeforetax | 176,116,201.79 | 76,703,166.46 |
| Incometaxexpenseatthestatutory/applicabletaxrate | 44,029,050.45 | 19,175,791.62 |
| Effectofdifferenttaxrateofsubsidiaries | -189,450.83 | -96,771.41 |
| Items | 2021 | 2020 |
| Adjustmentsofimpactfrompriorperiodincometax | -1,314,362.80 | -445,268.53 |
| Longtermequityinvestmentincomeandequityinstrumentinvestmentincome | -1,558,503.52 | -3,740,602.88 |
| Effectofnon-deductiblecosts,expensesorlosses | 1,296,846.61 | 409,611.27 |
| Effectofpreviouslyunrecognizeddeductiblelossesrecognizedasdeferredtaxassets | -597,396.47 | -372,335.43 |
| Effectofdeductibletemporarydifferencesanddeductiblelossesnotrecognizedasdeferredtaxassets | 2,397,487.27 | 2,222,449.90 |
| Other(theimpactofsmalllowprofitenterprisesonthereductionoftaxableincomeandtheexpectedbalanceofliabilitiesattheendoftheperiod) | -754,937.99 | |
| Incometaxexpenses | 44,063,670.71 | 16,397,936.55 |
5.52OtherComprehensiveIncomeFordetailsofnetamountaftertaxoftheothercomprehensiveincome,pleaserefertoNote5.35OtherComprehensiveIncomefordetails.
5.53NotestotheStatementofCashFlow(a)Othercashreceivedrelatingtooperatingactivities
| Items | 2021 | 2020 |
| Securitydeposit | 4,054,933.66 | 7,335,328.03 |
| Interestincome | 3,827,201.61 | 3,015,893.77 |
| Governmentsubsidiesreceived | 13,028,008.41 | 1,513,781.80 |
| Otherincomereceived | 46,275.77 | 44,839.26 |
| Currentaccountandothers | 3,026,161.94 | 4,209,581.52 |
| Total | 23,982,581.39 | 16,119,424.38 |
(b)Othercashpaymentsrelatingtooperatingactivities
| Items | 2021 | 2020 |
| Cashexpenses | 18,020,425.99 | 16,559,142.10 |
| Securitydeposit | 121,671.39 | 441,713.29 |
| Finesandexpensesfrombreachofcontract | 22,246.85 | 63,937.49 |
| Currentaccountandothers | 436,758.81 | |
| Total | 18,164,344.23 | 17,501,551.69 |
(c)Othercashreceivedrelatingtoinvestingactivities
| Items | 2021 | 2020 |
| Performancebondforequitytransferreceived | 50,000,000.00 | |
| Other | 1,931,753.79 | 69,962.11 |
| Total | 1,931,753.79 | 50,069,962.11 |
(d)Othercashreceivedrelatingtofinancingactivities
| Items | 2021 | 2020 |
| Loansfromnon-financialinstitutions | 24,800,000.00 | |
| Total | 24,800,000.00 |
(e)Othercashpaymentsrelatingtofinancingactivities
| Items | 2021 | 2020 |
| Repaymentofloansfromnon-financialinstitution | 24,800,000.00 | |
| Withdrawalofminorityshareholders'capital* | 50,000,000.00 | |
| Interestonperformancebondofequitytransfer | 2,893,150.68 | |
| Payprincipalandinterestonleaseliabilities | 3,380,669.67 | |
| Total | 52,893,150.68 | 24,800,000.00 |
*Note:ItreferstotheprincipalrefundedtoshareholdersaccordingtotheresolutionoftheliquidationgroupmeetingduringtheliquidationofSichuanTellusjewelryTechnologyCo.,Ltd.
5.54SupplementaryInformationtotheStatementofCashFlows(a)Supplementaryinformationtothestatementofcashflows
| Supplementaryinformation | 2021 | 2020 |
| Supplementaryinformation | 2021 | 2020 |
| (i)Adjustmentsofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 132,052,531.08 | 60,305,229.91 |
| Add:Provisionsforimpairmentofassets | 812,607.69 | 23,818.95 |
| ImpairmentLossofCredit | -38,129.28 | -1,528,748.01 |
| Depreciationoffixedassets,InvestmentProperties,oilandgasassetandproductivebiologicalassets | 30,459,581.08 | 27,990,380.00 |
| Depreciationofrightofuseassets | 2,976,277.13 | |
| Amortizationofintangibleassets | 2,377,422.39 | 534,789.66 |
| Amortizationoflong-termdeferredexpenses | 7,323,714.29 | 3,169,898.43 |
| Losses/(gainsas‘-’)ondisposaloffixedassets,intangibleassetsandotherlong-termassets | -143,104.93 | 25,894.65 |
| Losses/(gainsas‘-’)onscrappingoffixedassets | ||
| Losses/(gainsas‘-’)onchangesinfairvalue | -663,932.88 | -316,475.19 |
| Financecosts/(incomeas‘-’) | -693,563.69 | -547,378.56 |
| Investmentlosses/(incomeas‘-’) | -93,780,306.77 | -23,458,405.59 |
| Decreases/(increasesas‘-’)indeferredtaxassets | -728.93 | 160,140.29 |
| Increases/(decreasesas‘-’)indeferredtaxliabilities | 963045.49 | |
| Decreases/(increasesas‘-’)ininventories | -4,167,852.80 | -713,896.05 |
| Decreases/(increasesas‘-’)inoperatingreceivables | -12,856,907.71 | 89,142,199.52 |
| Increases/(decreasesas‘-’)inoperatingpayables | 61,991,082.74 | -45,682,145.13 |
| Supplementaryinformation | 2021 | 2020 |
| Others | ||
| Netcashflowsfromoperatingactivities | 126,611,734.90 | 109,105,302.88 |
| (ii)Significantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpayments: | ||
| Conversionofdebtintocapital | ||
| Convertiblecorporatebondsmaturingwithinoneyear | ||
| Fixedassetsacquiredunderfinanceleases | ||
| (iii)Netincreasesincashandcashequivalents: | ||
| Cashattheendofthereportingperiod | 211,655,585.86 | 208,462,656.63 |
| Less:Cashatthebeginningofthereportingperiod | 208,462,656.63 | 400,668,257.81 |
| Add:Cashequivalentsattheendofthereportingperiod | ||
| Less:Cashequivalentsatthebeginningofthereportingperiod | ||
| Netincreaseincashandcashequivalents | 3,192,929.23 | -192,205,601.18 |
(b)Thecomponentsofcashandcashequivalents
| Items | 31December2021 | 31December2020 |
| (i)Cash | 211,655,585.86 | 208,462,656.63 |
| Including:Cashonhand | 36,941.24 | 20,542.55 |
| Cashinbankavailableforimmediateuse | 211,618,644.62 | 208,442,114.08 |
| Othermonetaryfundsavailableforimmediateuse | ||
| (ii)Cashequivalents | ||
| Including:Bondinvestmentsmaturing |
| withinthreemonths | ||
| (iii)Cashandcashequivalentsattheendofthereportingperiod | 211,655,585.86 | 208,462,656.63 |
| Including:RestrictedcashandcashequivalentsoftheparentCompanyandthesubsidiariesofthegroup |
5.55RestrictedAssets
| Items | Carryingamountat31December2021 | Reason |
| Cashandcashequivalents | 28,926,471.30 | PleaserefertoNote5.1fordetails |
| Intangibleassets | 46,421,231.01 | Bankloanmortgage |
| Total | 75,347,702.31 |
5.56ForeignCurrencyMonetaryItems(a)Foreigncurrencymonetaryitemsat31December2021:
| Items | Carryingamountatforeigncurrency | Exchangerate | CarryingamountatCNY |
| Cashandcashequivalents | |||
| Including:USD | 31,536.09 | 6.3757 | 201,064.65 |
| HKD | 12,635.94 | 0.8176 | 10,331.15 |
| Total | 211,395.80 |
5.57GovernmentGrants(a)Governmentgrantsrelatedtoassets
| Items | Amount | Itemspresentedinthestatementoffinancialposition | Recognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | Presenteditemsthatrecognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | |
| 2021 | 2020 | ||||
| SubsidyfromFutian | 131,102.38 | Deferredincome | 19,914.29 | 8,297.62 | Otherincome |
| Items | Amount | Itemspresentedinthestatementoffinancialposition | Recognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | Presenteditemsthatrecognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | |
| 2021 | 2020 | ||||
| DistrictOldElevatorRenovationWorkingGroupforelevatorrenewal | |||||
| LuohuDistrict2021specialfundforindustrialtransformationandupgrading-IndustrialServicePlatformProject | 4,590,000.00 | Deferredincome | 341,808.53 | Otherincome | |
| SpecialfundforindustrialtransformationandupgradingofLuohuDistrictin2021-supportsubsidyforEnvironmentalProtectionBuildings | 4,017,501.99 | Deferredincome | 505,680.79 | Otherincome | |
| SubsidyincomeofconsumptionpromotionsupportprojectsofShenzhenMunicipalBureauofCommercein2020 | 2,500,000.00 | Deferredincome | 135,869.55 | Otherincome | |
| Total | 11,238,604.37 | 1,003,273.16 | 8,297.62 | ||
(b)Governmentgrantsrelatedtoincome
| Items | Amount | Itemspresentedinthestatementoffinancialposition | Recognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | Presenteditemsthatrecognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | |
| 2021 | 2020 | ||||
| Items | Amount | Itemspresentedinthestatementoffinancialposition | Recognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | Presenteditemsthatrecognizedincurrentprofitorlossordirectlyasdeductofrelatedcost | |
| 2021 | 2020 | ||||
| Depreciationofrightofuseassets2021LuohuDistrictspecialfundforindustrialtransformationandupgrading-IndustrialServicePlatformProject | 982,498.01 | Deferredincome | 982,498.01 | Otherincome | |
| Subsidiesforvocationaltrainingbasedonworkinsteadoftraining | 104,650.00 | N/A | 104,650.00 | Otherincome | |
| Specialfundforforeigntradeupgrading | 300,000.00 | N/A | 300,000.00 | Otherincome | |
| Specialsubsidiesforautomobiledealers | 162,831.86 | N/A | 162,831.86 | Otherincome | |
| SubsidyforthepurchaseofoldvehiclesfornewvehiclesbytheBureauofCommerce | 353,982.30 | N/A | 353,982.30 | Otherincome | |
| Jobstabilizationsubsidy | 16,544.25 | N/A | 16,544.25 | 29,480.01 | Otherincome |
| Total | 1,920,506.42 | 1,920,506.42 | 29,480.01 | ||
Note6.CHANGESINTHESCOPEOFCONSOLIDATION
6.1TheScopeofConsolidationIncreased
| Nameoftheacquirees | Waystoacquiretheequityinterests | Dateofacquiringtheequityinterests | Acquisitioncosts | Interestacquired(%) |
| 上海泛粤钻石有限公司(Shanghaifanyue | Newlyestablish | June2021 | 1,000,000.00 | 100 |
6.2TheScopeofConsolidationDecreased
diamondCo.,Ltd.*)
Nameoftheacquirees
| Nameoftheacquirees | Dateofliquidation |
| 四川特力珠宝科技有限公司(SichuanTellusJewelryTechnologyCo.,Ltd.*) | August2021 |
| 安徽特力星光珠宝投资有限公司(AnhuiTellusSeonJewelryInvestmentCo.,Ltd.*) | March2021 |
| 安徽特力星光金尊珠宝有限公司(AnhuiTellusSeonJinzunJewelryCo.,Ltd*) | January2021 |
Note7.INTERESTSINOTHERENTITIES
7.1InterestsinSubsidiaries(a)Compositionofcorporategroup
| Nameofsubsidiary | Principalplaceofbusiness | RegisteredAddress | Natureofbusiness | PercentageofequityinterestsbytheCompany(%) | Waysofacquisition | |
| Direct | Indirect | |||||
| 深圳市特力新永通汽车发展有限公司(ShenzhenTellusXinyongtongAutomobileDevelopmentCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市宝安石泉实业有限公司(ShenzhenBao’anShiquanIndustrialCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市特发特力房地产有限公司(ShenzhenSDGTellusRealEstateCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市特力创盈科技有限公司(ShenzhenTellusChuangyingTechnologyCo., | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| Nameofsubsidiary | Principalplaceofbusiness | RegisteredAddress | Natureofbusiness | PercentageofequityinterestsbytheCompany(%) | Waysofacquisition | |
| Direct | Indirect | |||||
| Ltd.*) | ||||||
| 深圳市新永通机动车检测设备有限公司(ShenzhenXinyongtongAutoVehicleInspectionEquipmentCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 51.00 | Setup | |
| 深圳市汽车工业贸易有限公司(ShenzhenAutomobileIndustryandTradeCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市汽车工业供销公司(ShenzhenAutomobileIndustrySupplyandMarketingCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳特发华日汽车企业有限公司(ShenzhenSDGHuariAutomobileEnterpriseCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 60.00 | Setup | |
| 深圳市华日安信汽车检测有限公司(ShenzhenHuariAnxinAutomobileInspectionCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市中天实业有限公司(ShenzhenZhongtianIndustrialCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesService | Shenzhen | Shenzhen | Commercial | 60.00 | Setup | |
| Nameofsubsidiary | Principalplaceofbusiness | RegisteredAddress | Natureofbusiness | PercentageofequityinterestsbytheCompany(%) | Waysofacquisition | |
| Direct | Indirect | |||||
| Co.,Ltd.*) | ||||||
| 深圳市特力宝库供应链科技有限公司(ShenzhenTellusBaokuSupplyChainTechnologyCo.,Ltd.*) | Shenzhen | Shenzhen | Commercial | 100.00 | Setup | |
| 深圳珠宝产业服务有限公司(ShenzhenJewelryIndustryServiceCo.Ltd.*) | Shenzhen | Shenzhen | Commercial | 65.00 | Setup | |
| 上海泛粤钻石有限公司(ShanghaifanyuediamondCo.,Ltd.*) | Shanghai | Shanghai | Commercial | 100.00 | Setup | |
(b)Significantnon-whollyownedsubsidiaries
| Nameofsubsidiary | Proportionofownershipinterestheldbynon-controllinginterests | Profitorlossattributabletonon-controllinginterestsduringthereportingperiod | Dividendsdeclaredtodistributetonon-controllinginterestsduringthereportingperiod | Non-controllinginterestsattheendofthereportingperiod |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesCo.,Ltd.*) | 40 | 365,763.52 | 4,473,770.51 | |
| 深圳特发华日汽车企业有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | 40 | 1,548,901.18 | 12,503,876.14 |
(c)Mainfinancialinformationofsignificantnon-whollyownedsubsidiaries
| Nameofsubsidiary | 31December2021 | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesCo.,Ltd.*) | 85,290,018.33 | 5,005,912.12 | 90,295,930.45 | 79,111,504.18 | 79,111,504.18 | |
| 深圳特发华日汽车企业有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | 61,681,938.58 | 20,655,893.78 | 82,337,832.36 | 50,835,836.99 | 50,835,836.99 | |
(Continued)
| Nameofsubsidiary | 31December2020 | |||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesCo.,Ltd.*) | 67,507,256.67 | 6,694,509.17 | 74,201,765.84 | 63,931,748.36 | 63,931,748.36 | |
| 深圳特发华日汽车企业有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | 52,641,986.30 | 22,198,318.35 | 74,840,304.65 | 47,302,867.25 | 47,302,867.25 | |
Nameofsubsidiary
| Nameofsubsidiary | 2021 | |||
| Revenue | Netprofit/(loss) | Totalcomprehensiveincome | Netcashflowsfromoperatingactivities | |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesCo.,Ltd.*) | 245,772,043.22 | 914,408.79 | 914,408.79 | -11,521,597.56 |
| Nameofsubsidiary | 2021 | |||
| Revenue | Netprofit/(loss) | Totalcomprehensiveincome | Netcashflowsfromoperatingactivities | |
| 深圳特发华日汽车企业有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | 39,729,074.81 | 3,964,557.97 | 3,964,557.97 | 7,232,060.46 |
(Continued)
| Nameofsubsidiary | 2020 | |||
| Revenue | Netprofit/(loss) | Totalcomprehensiveincome | Netcashflowsfromoperatingactivities | |
| 深圳市华日丰田汽车销售服务有限公司(ShenzhenHuariToyotaAutoSalesCo.,Ltd.*) | 250,984,420.93 | 6,074,051.06 | 6,074,051.06 | 4,948,345.76 |
| 深圳特发华日汽车企业有限公司(ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd.*) | 34,313,269.53 | 3,132,604.24 | 3,132,604.24 | 4,440,264.62 |
7.2InterestsinJointArrangementsorAssociates(a)Significantjointventuresorassociates
| Companyname | Principalplaceofbusiness | Registeredaddress | Natureofbusiness | ProportionofequityinterestsbytheCompany(%) | Measurementmethods | |
| Direct | Indirect | |||||
| Jointventures | ||||||
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo., | Shenzhen | Shenzhen | Investmentinindustries | 50.00 | Accountingbyequitymethod | |
| Ltd.*) | ||||||
| Associates | ||||||
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | Shenzhen | Shenzhen | MercedesBenzsales | 35.00 | Accountingbyequitymethod |
(b)Mainfinancialinformationofthesignificantjointventures
| Items | 31Dec2021/2021 | 31Dec2020/2020 |
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | |
| Currentassets | 45,816,920.84 | 37,797,029.81 |
| Including:Cashandcashequivalents | 41,913,040.87 | 34,281,101.96 |
| Non-currentassets | 366,402,308.03 | 360,906,421.80 |
| Totalassets | 412,219,228.87 | 398,703,451.61 |
Currentliabilities
| Currentliabilities | 39,971,747.31 | 27,947,969.41 |
| Non-currentliabilities | 277,266,000.00 | 295,422,000.00 |
| Totalliabilities | 317,237,747.31 | 323,369,969.41 |
Non-controllinginterests
| Non-controllinginterests | ||
| Totalowner’sequityattributabletoparentCompany | 94,981,481.56 | 75,333,482.20 |
Shareofnetassetscalculatedattheproportionofequityinterests
| Shareofnetassetscalculatedattheproportionofequityinterests | 47,490,740.78 | 37,666,741.13 |
| Adjustmentmatters | ||
| —Goodwill |
| Items | 31Dec2021/2021 | 31Dec2020/2020 |
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | |
| —Unrealizedprofitfromintragrouptransaction | ||
| —Others | ||
| Carryingamountofinvestmentinthejointventure | 47,490,740.78 | 37,666,741.13 |
Fairvalueofpubliclyquotedequityinvestmentinjointventure
FairvalueofpubliclyquotedequityinvestmentinjointventureRevenue
| Revenue | 94,989,415.30 | 87,082,384.96 |
| Financeexpenses | 15,467,775.34 | 15,850,179.92 |
| Incometaxexpenses | 6,647,599.75 | 6,905,938.48 |
| Netprofit/(loss) | 19,647,999.36 | 21,022,715.25 |
| Netprofitfromdiscontinuedoperations | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | 19,647,999.36 | 21,022,715.25 |
Dividendsreceivedfromthejointventure
| Dividendsreceivedfromthejointventure | 8,000,000.00 |
(c)Mainfinancialinformationofsignificantassociates
| Items | 31Dec2021/2021 | 31Dec2020/2020 |
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 深圳东风汽车有限公司(ShenzhenDongfengAutomobileCo.,Ltd.*) | |
| CurrentAssets | 134,921,582.03 | 214,297,861.00 | 378,483,991.85 |
| Non-currentassets | 33,583,787.31 | 23,368,404.54 | 172,244,888.77 |
| Totalassets | 168,505,369.34 | 237,666,265.54 | 550,728,880.62 |
Currentliabilities
| Currentliabilities | 80,369,170.77 | 141,645,848.00 | 344,958,726.39 |
| Non-currentliabilities | 9,942,186.16 | 65,583,477.43 | |
| Totalliabilities | 90,311,356.93 | 141,645,848.00 | 410,542,203.82 |
Non-controllinginterests
| Non-controllinginterests | -14,510,815.59 | ||
| Totalowner’sequityattributabletoparentCompany | 78,194,012.41 | 96,020,417.54 | 154,697,492.39 |
Shareofnetassetscalculatedattheproportionofequityinterests
| Shareofnetassetscalculatedattheproportionofequityinterests | 27,367,904.34 | 33,607,146.14 | 38,674,373.09 |
| Adjustmentmatters | |||
| —Goodwill | |||
| —Unrealizedprofitfromintragrouptransaction | |||
| —Others | |||
| Carryingamountofinvestmentinthe | 27,367,904.34 | 33,607,146.14 | 38,674,373.09 |
| Items | 31Dec2021/2021 | 31Dec2020/2020 | |
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 深圳东风汽车有限公司(ShenzhenDongfengAutomobileCo.,Ltd.*) | |
| associate | |||
Fairvalueofpubliclyquotedequityinvestmentinassociate
FairvalueofpubliclyquotedequityinvestmentinassociateRevenue
| Revenue | 1,196,335,565.98 | 1,247,864,433.00 | 399,893,712.73 |
| Netprofit/(loss) | 26,521,546.61 | 30,838,325.75 | -26,791,281.02 |
| Netprofitfromdiscontinuedoperations | |||
| Othercomprehensiveincome | |||
| Totalcomprehensiveincome | 26,521,546.61 | 30,838,325.75 | -26,791,281.02 |
Dividendsreceivedfromtheassociate
| Dividendsreceivedfromtheassociate | 14,000,000.00 | 10,500,000.00 |
(d)Summarizedfinancialinformationaboutinsignificantjointventuresandassociates
| 31December2021/2021 | 31December2020/2020 | |
| Jointventure： |
| Totalcarryingamountofinvestments | 13,452,222.35 | 12,697,424.88 |
| Theaggregateamountofbelowitemscalculatedbasedonproportionofequityinterests: | ||
| —Netprofit/(loss) | 1,174,566.00 | 1,365,105.69 |
| —Othercomprehensiveincome | ||
| —Totalcomprehensiveincome | 1,174,566.00 | 1,365,105.69 |
Associate：
Associate：
Totalcarryingamountofinvestments
| Totalcarryingamountofinvestments | 995,270.33 | |
| Theaggregateamountofbelowitemscalculatedbasedonproportionofequityinterests: | ||
| —Netprofit/(loss) | -4,655,318.50 | |
| —Othercomprehensiveincome | ||
| —Totalcomprehensiveincome | -4,655,318.50 |
(e)Excessdeficitinjointventuresorassociates
| Nameofjointventuresorassociates | Cumulativeunrecognizedlossat31December2020 | Unrecognizedprofitinthereportingperiod(orshareofnetprofitinthereportingperiod) | Cumulativeunrecognizedlossat31December2021 |
| 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*) | 98,865.26 | 98,865.26 | |
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*) | 1,176,212.73 | 1,176,212.73 |
Note8.RISKSRELATEDTOFINANCIALINSTRUMENTSRisksrelatedtothefinancialinstrumentsoftheCompanyarisefromtherecognitionofvariousfinancialassetsandfinancialliabilitiesduringitsoperation,includingcreditrisk,liquidityriskandmarketrisk.ManagementoftheCompanyisresponsiblefordeterminingriskmanagementobjectivesandpoliciesrelatedtofinancialinstruments.Operationalmanagementisresponsibleforthedailyriskmanagementthroughfunctionaldepartments(e.g.creditmanagementdepartmentoftheCompanyreviewseachcreditsale).Internalauditdepartmentisresponsibleforthedailysupervisionofimplementationoftheriskmanagementpoliciesandprocedures,andreporttheirfindingstotheauditcommitteeinatimelymanner.OverallriskmanagementobjectiveoftheCompanyistoestablishriskmanagementpoliciestominimizetheriskswithoutundulyaffectingthecompetitivenessandresilienceoftheCompany.
8.1CreditRiskCreditriskistheriskofonepartyofthefinancialinstrumentfacetoafinanciallossbecausetheotherpartyofthefinancialinstrumentfailstofulfillitsobligation.ThecreditriskoftheCompanyisrelatedtocashandequivalent,notesreceivable,accountsreceivables,otherreceivablesandlong-termreceivables.Creditriskofthesefinancialassetsisderivedfromthecounterparty’sbreachofcontract.Themaximumriskexposureisequaltothecarryingamountofthesefinancialinstruments.CashandcashequivalentoftheCompanyhaslowercreditrisk,astheyaremainlydepositedinsuchfinancialinstitutionsascommercialbank,ofwhichtheCompanythinkswithhigherreputationandfinancialposition.Fornotesreceivable,otherreceivablesandlong-termreceivables,theCompanyestablishesrelatedpoliciestocontroltheircreditriskexposure.TheCompanyassessescreditcapabilityofitscustomersanddeterminestheircredittermsbasedontheirfinancialposition,possibilityoftheguaranteefromthirdparty,creditrecordandotherfactors(suchascurrentmarketstatus,etc.).TheCompanymonitorsitscustomers’creditrecordperiodically,andforthosecustomerswithpoorcreditrecord,theCompanywilltakemeasuressuchaswrittencall,shorteningorcancellingtheircredittermssoastoensuretheoverallcreditriskoftheCompanyiscontrollable.(i)DeterminationofsignificantincreasesincreditriskTheCompanyassessesateachreportingdateastowhetherthecreditriskonfinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.WhentheCompanydetermineswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,itconsidersbasedonreasonableandsupportableinformationthatisavailablewithoutunduecostoreffort,includingquantitativeandqualitativeanalysisofhistoricalinformation,externalcreditratingsandforward-lookinginformation.TheCompanydeterminesthechangesintheriskofadefaultoccurringovertheexpectedlifeofthefinancialinstrumentthroughcomparingtheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognitionbasedonindividualfinancialinstrumentoragroupoffinancialinstrumentswiththesimilarcreditriskcharacteristics.
Whenmetoneormoreofthefollowingquantitativeorqualitativecriteria,theCompanydeterminesthatthecreditriskonfinancialinstrumentshasincreasedsignificantly:thequantitativecriteriaappliedmainlybecauseasatthereportingdate,theincreaseintheprobabilityofdefaultoccurringoverthelifetimeismorethanacertainpercentagesincetheinitialrecognition;thequalitativecriteriaappliedifthedebtorhasadversechangesinbusinessandeconomicconditions,earlywarninglistofcustomer,andetc.(ii)Definitionofcredit-impairedfinancialassetsThecriteriaadoptedbytheCompanyfordeterminationofcreditimpairmentareconsistentwithinternalcreditriskmanagementobjectivesofrelevantfinancialinstrumentsinconsideringbothquantitativeandqualitativeindicators.WhentheCompanyassesseswhetherthedebtorhasincurredthecreditimpairment,themainfactorsconsideredareasfollowing:
Significantfinancialdifficultyoftheissuerortheborrower;abreachofcontract,e.g.,defaultorpast-dueevent;alenderhavinggrantedaconcessiontotheborrowerforeconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficultythatthelenderwouldnototherwiseconsider;theprobabilitythattheborrowerwillenterbankruptcyorotherfinancialre-organisation;thedisappearanceofanactivemarketforthefinancialassetbecauseoffinancialdifficultiesoftheissuerortheborrower;thepurchaseororiginationofafinancialassetatadeepdiscountthatreflectstheincurredcreditlosses.(iii)TheparameterofexpectedcreditlossmeasurementTheCompanymeasuresimpairmentprovisionfordifferentassetswiththeexpectedcreditlossof12-monthorthelifetimebasedonwhethertherehasbeenasignificantincreaseincreditriskorcreditimpairmenthasoccurred.Thekeyparametersforexpectedcreditlossmeasurementincludedefaultprobability,defaultlossrateanddefaultriskexposure.TheCompanysetsupthemodelofdefaultprobability,defaultlossrateanddefaultriskexposureinconsideringthequantitativeanalysisofhistoricalstatistics(suchascounterparties’ratings,guaranteemethodandcollateraltype,repaymentmethod,etc.)andforward-lookinginformation.Relevantdefinitionsareasfollowing:
Defaultprobabilityreferstotheprobabilityofthedebtorwillfailtodischargetherepaymentobligationoverthenext12monthsortheentireremaininglifetime;DefaultlossratereferstotheCompany'sexpectationofthelossdegreeofdefaultriskexposure.Thedefaultlossratevariesdependingonthetypeofcounterparty,recoursemethodandpriority,andthecollateral.Thedefaultlossrateisthepercentageoftheriskexposurelosswhendefaulthasoccurredanditiscalculatedoverthenext12monthsortheentirelifetime;ThedefaultriskexposurereferstotheamountthattheCompanyshouldberepaidwhendefaulthasoccurredinthenext12monthsortheentirelifetime.Boththeassessmentofsignificantincreaseincreditriskofforward-lookinginformationandthecalculationofexpectedcreditlossesinvolveforward-lookinginformation.Throughhistoricaldataanalysis,theCompanyidentifieskeyeconomicindicatorsthathaveimpactonthecreditriskandexpectedcreditlossesforeachbusiness.ThemaximumexposuretocreditriskoftheCompanyisthecarryingamountofeachfinancialassetinthestatementoffinancial
position.TheCompanydoesnotprovideanyotherguaranteesthatmayexposetheCompanytocreditrisk.
8.2LiquidityRiskLiquidityriskistheriskofshortageoffundswhenfulfillingtheobligationofsettlementbydeliveringcashorotherfinancialassets.TheCompanyisresponsibleforthecapitalmanagementofallofitssubsidiaries,includingshort-terminvestmentofcashsurplusanddealingwithforecastedcashdemandbyraisingloans.TheCompany’spolicyistomonitorthedemandforshort-termandlong-termfloatingcapitalandwhethertherequirementofloancontractsissatisfiedsoastoensuretomaintainadequatecashandcashequivalents.Asat31December2021,thematurityprofileoftheCompany’sfinancialliabilitiesisasfollows:
| Items | 31December2021 | |||
| Within1year | 1-2years | 2-3years | Above3years | |
| Accountspayable | 69,318,035.89 | |||
| Otherpayables | 112,617,963.65 | |||
| Non-currentliabilitiesduewithinoneyear | 3,021,452.25 | |||
| Long-termloans | 3,644,467.25 | 4,609,457.14 | 5,967,792.71 | 118,790,550.21 |
| Long-termpayables | 3,920,160.36 | |||
| Leaseliabilities | 1,829,520.13 | 1,684,781.03 | 960,241.93 | |
| Total | 192,522,079.40 | 6,438,977.27 | 7,652,573.74 | 119,750,792.14 |
(Continued)
| Items | 31December2020 | |||
| Within1year | 1-2years | 2-3years | Above3years | |
| Accountspayable | 76,583,166.53 | |||
| Otherpayables | 158,617,678.97 | |||
| Long-termloans | 469,213.89 | 469,213.89 | 774,906.74 | 14,207,964.22 |
| Long-termpayables | 3,920,160.36 | |||
| Total | 239,590,219.75 | 469,213.89 | 774,906.74 | 14,207,964.22 |
8.3MarketRisk(a)ForeigncurrencyriskForeigncurrencyriskistheriskarisingfromchangesinfairvalueorfuturecashflowsoffinancialinstrumentresultedfromchanges
inexchangerate.TheCompanyismainlyoperatedinmainlandChina,whosemainactivitiesaredenominatedinCNY,hence,theCompanybearsinsignificantmarketriskarisingfromforeignexchangechanges.PleaserefertoNote5.56ForeignCurrencyfordetailsinforeigncurrencyfinancialassetsandliabilitiesonthebalancesheetdate.(b)InterestrateriskInterestrateriskoftheCompanyprimarilyarisesfromitslong-terminterest-bearingdebts,suchaslong-termloansandbondspayables,etc.FinancialliabilitieswithfloatinginterestratemaketheCompanysubjecttocashflowinterestraterisk,andfinancialliabilitieswithfixedinterestratemaketheCompanysubjecttofairvalueinterestraterisk.TheCompanydeterminestherelativeproportionofthefixedinterestcontractsandfloatinginterestcontractsbasedonthecurrentmarketenvironment.FinancedepartmentoftheCompany’sheadquartermonitorsinterestrateofthegroupcontinuously.Increaseoftheinterestratewillresultintheincreaseofthecostofnewinterest-bearingdebtsandtheinterestexpenseoftheunpaidinterest-bearingdebtswithfloatingrate,andsubsequentlyleadtosignificantnegativeimpactonthefinancialperformanceoftheCompany.Themanagementmakesadjustmentinaccordancewiththeupdatemarketconditioninatimelymanner.Note9.FAIRVALUEDISCLOSURESTheinputsusedinthefairvaluemeasurementinitsentiretyaretobeclassifiedinthelevelofthehierarchyinwhichthelowestlevelinputthatissignificanttothemeasurementisclassified.Level1:InputsconsistofunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesLevel2:Inputsfortheassetsorliabilities(otherthanthoseincludedinLevel1)thatareeitherdirectlyorindirectlyobservable.Level3:Inputsareunobservableinputsfortheassetsorliabilities
9.1AssetsandLiabilitiesMeasuredatFairValueat31December2021
| Items | Fairvalueat31December2021 | |||
| Level1 | Level2 | Level3 | Total | |
| Recurringfairvaluemeasurements | ||||
| (a)Held-for-tradingfinancialassets | 412,712,843.84 | 412,712,843.84 | ||
| (i)Financialassetsdesignatedasatfairvaluethroughprofitorloss | ||||
| Structureddepositsandfinancialproducts | 412,712,843.84 | 412,712,843.84 | ||
| (b)Otherequityinstrumentinvestment | 10,176,617.20 | 10,176,617.20 | ||
| Totalassetsmeasuredatfairvalueonarecurringbasis | 422,889,461.04 | 422,889,461.04 | ||
Thefairvalueoffinancialinstrumentstradedinanactivemarketisbasedonquotedmarketpricesatthereportingdate.Thefair
valueoffinancialinstrumentsnottradedinanactivemarketisdeterminedbyusingvaluationtechniques.SpecificvaluationtechniquesusedtovaluetheabovefinancialinstrumentsincludediscountedcashflowandmarketapproachtocomparableCompanymodel.Inputsinthevaluationtechniqueincluderisk-freeinterestrates,benchmarkinterestrates,exchangerates,creditspreads,liquiditypremiums,discountforlackofliquidity.
9.2ValuationTechnique(s),QualitativeandQuantitativeInformationabouttheSignificantInputsUsedforFairValueMeasurementinLevel3onaRecurringorNonrecurringBasisThetradingfinancialassetsarethestructureddepositsandfinancialproductspurchased.Thefuturecashflowispredictedbytheexpectedrateofreturn,andtheunobservableestimateistheexpectedrateofreturn.Asthebusinessenvironment,operationandfinancialsituationoftheinvestedenterpriseChinaPudongDevelopmentMachineryIndustryCo.,Ltd.havenotchangedsignificantly,theCompanymeasurestheinvestmentcostasareasonableestimateofthefairvalue.Note10.RELATEDPARTIESANDRELATEDPARTYTRANSACTIONSRecognitionofrelatedparties:TheCompanyhascontrolorjointcontrolof,orexercisesignificantinfluenceoveranotherparty;ortheCompanyiscontrolledorjointlycontrolled,orsignificantinfluencedbyanotherparty.
10.1GeneralInformationoftheParentCompany
| Nameoftheparent | Registeredaddress | Natureofthebusiness | Registeredcapital | PercentageofequityinterestsintheCompany(%) | VotingrightsintheCompany(%) |
| ShenzhenSDGGroupCo.,Ltd. | Shenzhen | Realestatedevelopmentandmanagement,domesticbusiness | 4,582.82million | 49.09 | 49.09 |
(1)RemarksontheparentCompanyShenzhenSDGGroupCo.,Ltd.wasinvestedbytheState-ownedAssetsSupervisionandAdministrationCommissionofthePeople’sGovernmentofShenzhenMunicipal(the“ShenzhenSASAC”)andestablishedonAugust1,1981.ShenzhenSDGGroupCo.,Ltd.currentlyholdsabusinesslicensewithunifiedsocialcreditcodeof91440300192194195C,withregisteredcapitalofCNY4,582.82million.
(2)TheCompany’sultimatecontrollingpartyisShenzhenSASAC.
10.2GeneralInformationofSubsidiariesDetailsofthesubsidiariespleaserefertoNotes7INTERESTSINOTHERENTITIES.
10.3JointVenturesandAssociatesoftheCompany
(a)GeneralinformationofsignificantjointventuresandassociatesDetailsofsignificantjointventuresandassociatespleaserefertoNotes7INTERESTSINOTHERENTITIES(b)DetailsofotherjointventuresorassociatestradingwithorwithoutstandingtotheCompanyduringthereportingperiod
| Name | RelationshipwiththeCompany |
| 深圳市新永通汽车服务有限公司(ShenzhenXinyongtongDongxiaoAutomobileServiceCo.,Ltd.*) | Associateoriginally,transferredincurrentperiod |
| 深圳市特力新永通汽车服务有限公司(ShenzhenTellusXinyongtongAutomobileServiceCo.,Ltd.*) | Associate |
| 深圳市新永通东晓汽车服务有限公司(ShenzhenXinyongtongDongxiaoAutomobileServiceCo.,Ltd.*) | Associateoriginally,transferredinpreviousperiod |
| 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*) | Associate |
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*) | Associate |
| 深圳市先导新材料有限公司(ShenzhenXiandaoNewMaterialsCo.,Ltd.*) | Associate |
| 深圳市特力行投资有限公司(ShenzhenTellusXingInvestmentCo.,Ltd.*) | Jointventure |
10.4OtherRelatedPartiesoftheCompany
| Name | RelationshipwiththeCompany |
| 深圳市特发小额贷款有限公司(ShenzhenSDGMicrofinanceCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市特发天鹅实业公司(ShenzhenSDGSwanIndustrialCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市机械设备进出口公司(ShenzhenMachineryandEquipmentImportandExportCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市特发地产有限公司(ShenzhenSDGRealEstateCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 香港裕嘉投资有限公司 | Holdingsubsidiaryoftheparent |
| Name | RelationshipwiththeCompany |
| (HongKongYujiaInvestmentCo.,Ltd.*) | Company |
| 深圳市特发工程管理有限责任公司(ShenzhenSDGEngineeringManagementCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市特力阳春房地产公司(ShenzhenTellusYangchunRealEstateCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳龙岗特力房地产公司(ShenzhenLonggangTellusRealEstateCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | HoldingsubsidiaryoftheparentCompany |
| 深圳市特发服务股份有限公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch*) | HoldingsubsidiaryoftheparentCompany |
| 深圳华丽装修家私企业公司(ShenzhenHualiDecorationFurnitureEnterpriseCo.,Ltd.*) | Associateoftheparentcompany |
| 安徽金尊珠宝有限公司(AnhuiJinzunJewelryCo.,Ltd.*) | Participatingshareholder |
| 汉成能源集团有限公司(HubeiHan’sIndustryInvestmentCo.,Ltd.*) | Shareholderofsignificantoriginalassociates |
10.5RelatedPartyTransactions(a)Purchasesorsalesofgoods,renderingorreceivingofservicesPurchasesofgoods,receivingofservices:
| Relatedparties | Natureofthetransaction(s) | 2021 | 2020 |
| 深圳市特发工程管理有限责任公司(ShenzhenSDGEngineeringManagementCo.,Ltd.*) | Receivingofservices | 1,976,807.29 | 838,867.91 |
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | Receivingofservices | 10,137,230.33 | 14,396,112.96 |
| 深圳市特发服务股份有限公司 | Receivingofservices | 4,270,312.85 |
| Relatedparties | Natureofthetransaction(s) | 2021 | 2020 |
| (ShenzhenSDGServiceCo.,Ltd.*) | |||
| 深圳市特发服务股份有限公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch) | Receivingofservices | 861,379.56 | 1,046,227.65 |
| 深圳华丽装修家私企业公司(ShenzhenHualiDecorationFurnitureEnterpriseCo.,Ltd.*) | Receivingofservices | 3,094,128.99 |
Salesofgoodsandrenderingofservices:
| Relatedparties | Natureofthetransaction(s) | 2021 | 2020 |
| 深圳市特发小额贷款有限公司(ShenzhenSDGMicrofinanceCo.,Ltd.*) | Renderingofservices | 207,640.32 | 161,205.25 |
| 深圳市特发服务股份有限公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch) | Renderingofservices | 6,693.06 | |
| 深圳市特发集团有限公司(ShenzhenSDGGroupCo.,Ltd.*) | Renderingofservices | 45,592.00 | |
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | Renderingofservices | 1,876.11 | 6,868.14 |
(b)LeasesTheCompanyaslessor:
| Thelessee | Typeofassetsleased | 2021 | 2020 |
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | Houseleasing | 5,250,031.70 | 3,857,142.90 |
| 深圳市新永通汽车服务有限公司(ShenzhenXinyongtongAutomobile | Houseleasing | 717,300.00 | 527,029.51 |
| ServiceCo.,Ltd.*) | |||
| 深圳市新永通东晓汽车服务有限公司(ShenzhenXinyongtongDongxiaoAutomobileServiceCo.,Ltd.*) | Houseleasing | 173,534.28 | |
| 深圳市特发小额贷款有限公司(ShenzhenSDGMicrofinanceCo.,Ltd.*) | Houseleasing | 1,103,104.38 | 975,808.45 |
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | Houseleasing | 75,897.40 | 44,754.54 |
| 深圳市特发服务股份有限公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch*) | Houseleasing | 2,073,048.97 | 1,801,091.36 |
| 深圳市特发服务股份有限公司(ShenzhenSDGServiceCo.,Ltd.*) | Houseleasing | 22,217.14 | |
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*) | Houseleasing | 32,061.90 |
(c)Keymanagementpersonnelcompensation
| Items | 2021 | 2020 |
| Keymanagementpersonnelcompensation | 9,035,700.00 | 6,954,700.00 |
10.6ReceivablesandPayableswithRelatedParties(a)Receivables
| Items | Relatedparties | Closingbalance | Openingbalance | ||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | ||
| Accountsreceivable | 深圳市新永通汽车服务有限公司(ShenzhenXinyongtongAutomobileServiceCo.,Ltd.*） | 927,602.00 | 927,602.00 | ||
| 深圳市特发服务股份有限 | 9,167.57 | 91.68 | |||
| Items | Relatedparties | Closingbalance | Openingbalance | ||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | ||
| 公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch*) | |||||
| 深圳市特发小额贷款有限公司(ShenzhenSDGMicrofinanceCo.,Ltd.*) | 17,791.06 | 177.91 | 115,481.80 | 1,154.82 | |
| Subtotal | 26,958.63 | 269.59 | 1,043,083.80 | 928,756.82 | |
| Dividendreceivable | 深圳东风汽车有限公司(ShenzhenDongfengAutomobileCo.,Ltd.*) | 24,100,548.07 | |||
| Subtotal | 24,100,548.07 | ||||
| Otherreceivables | 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*) | 1,359,297.00 | 1,359,297.00 | 1,359,297.00 | 1,359,297.00 |
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*) | 531,882.24 | 531,882.24 | 531,882.24 | 531,882.24 | |
| 深圳市先导新材料有限公司(ShenzhenXiandaoNewMaterialsCo.,Ltd.*) | 660,790.09 | 660,790.09 | 660,790.09 | 660,790.09 | |
| 深圳市特力新永通汽车服务有限公司(ShenzhenTellusXinyongtongAutomobileServiceCo.,Ltd.*) | 114,776.33 | 114,776.33 | |||
| 深圳市特发特力物业管理有限公司(ShenzhenSDG | 12,829.59 | 128.3 | |||
| Items | Relatedparties | Closingbalance | Openingbalance | ||
| Bookbalance | Provisionforbaddebts | Bookbalance | Provisionforbaddebts | ||
| TellusPropertyManagementCo.,Ltd.*) | |||||
| Subtotal | 2,564,798.92 | 2,552,097.63 | 2,666,745.66 | 2,666,745.66 | |
| Long-termreceivables | 深圳特力汽车服务连锁有限公司(ShenzhenTellusAutomobileServicesChainCo.,Ltd.*) | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 |
| Subtotal | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | 2,179,203.68 | |
(b)Payables
| Items | Relatedparties | Closingbalance | Openingbalance |
| Accountspayable | 深圳市特发地产有限公司(ShenzhenSDGRealEstateCo.,Ltd.*) | 6,054,855.46 | 6,054,855.46 |
| 深圳市机械设备进出口公司(ShenzhenMachineryandEquipmentImportandExportCo.,Ltd.*) | 45,300.00 | 45,300.00 | |
| 深圳特力吉盟投资有限公司(ShenzhenTellusJimengInvestmentCo.,Ltd.*) | 200,000.00 | 200,000.00 | |
| 深圳市特发工程管理有限责任公司(ShenzhenSDGEngineeringManagementCo.,Ltd.*) | 150,005.66 | 12,905.66 | |
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | 1,708,125.16 | 2,516,323.68 | |
| 深圳华丽装修家私企业公司(ShenzhenHualiDecorationFurnitureEnterpriseCo.,Ltd.*) | 1,042,036.18 | ||
| Subtotal | 9,200,322.46 | 8,829,384.80 | |
| Advance | 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesService | 492,095.20 |
| Items | Relatedparties | Closingbalance | Openingbalance |
| Payment | Co.,Ltd.*) | ||
| Subtotal | 492,095.20 | ||
| Otherpayables | 香港裕嘉投资有限公司(HongKongYujiaInvestmentCo.,Ltd.*) | 1,961,673.06 | 2,172,091.54 |
| 深圳市特发天鹅实业公司(ShenzhenSDGSwanIndustrialCo.,Ltd.*) | 28,766.05 | 20,703.25 | |
| 深圳市机械设备进出口公司(ShenzhenMachineryandEquipmentImportandExportCo.,Ltd.*) | 1,575,452.52 | 1,554,196.80 | |
| 深圳市特发集团有限公司(ShenzhenSDGGroupCo.,Ltd.*) | 17,383,655.94 | 17,429,247.94 | |
| 深圳龙岗特力房地产公司(ShenzhenLonggangTellusRealEstateCo.,Ltd.*) | 1,095,742.50 | 1,095,742.50 | |
| 深圳市特力阳春房地产公司(ShenzhenTellusYangchunRealEstateCo.,Ltd.*) | 476,217.49 | 476,217.49 | |
| 深圳市特力行投资有限公司(ShenzhenTellusXingInvestmentCo.,Ltd.*) | 167,470.29 | 122,978.63 | |
| 深圳市永通信达检测设备有限责任公司(ShenzhenYongtongXindaInspectionEquipmentCo.,Ltd.*) | 5,600.00 | 5,600.00 | |
| 安徽金尊珠宝有限公司(AnhuiJinzunJewelryCo.,Ltd.*) | 1,330,000.00 | ||
| 深圳市特发特力物业管理有限公司(ShenzhenSDGTellusPropertyManagementCo.,Ltd.*) | 122,141.49 | 124,550.87 | |
| 深圳市特发服务股份有限公司珠宝园分公司(ShenzhenSDGServiceCo.,Ltd.JewelryParkBranch) | 29,278.00 | 6,598.00 | |
| 深圳市仁孚特力汽车服务有限公司(ShenzhenRenfuTellusAutomobilesServiceCo.,Ltd.*) | 833,334.00 | 833,334.00 |
| Items | Relatedparties | Closingbalance | Openingbalance |
| 深圳市特发小额贷款有限公司(ShenzhenSDGMicrofinanceCo.,Ltd.*) | 237,804.66 | 227,836.80 | |
| 深圳市特发工程管理有限责任公司(ShenzhenSDGEngineeringManagementCo.,Ltd.*) | 56,600.00 | 58,100.00 | |
| 汉成能源集团有限公司(HubeiHan’sIndustryInvestmentCo.,Ltd.*) | 51,000,000.00 | ||
| 深圳市特发服务股份有限公司(ShenzhenSDGServiceCo.,Ltd.*) | 5,832.00 | ||
| 深圳华丽装修家私企业公司(ShenzhenHualiDecorationFurnitureEnterpriseCo.,Ltd.*) | 166,956.51 | ||
| Subtotal | 24,146,524.51 | 76,457,197.82 |
Note11.COMMITMENTSANDCONTINGENCIES
11.1SignificantCommitments
(a)Capitalcommitments:
| Capitalcommitmentssignedbutnotyetrecognizedinthefinancialstatements | 31December2021 | 31December2020 |
| Largecontract | 153,763,306.33 | 220,523,772.58 |
11.2ContingenciesSignificantcontingenciesexistingatthebalancesheetdate:
InOctober2005,theCompanyfiledalawsuittotheShenzhenLuohuDistrictPeople’sCourt,requesting金田实业（集团）股份有限公司(GintianIndustry(Group)Co.,Ltd.
?,hereinafterreferredtoas“GintianCompany”)tocompensateitsmandatorydeductionduetotheguaranteeprovidedforbankborrowingsofGintianCompany.ThetotalamountwasCNY4,081,830,includingprincipalofCNY3million,interestsofCNY1,051,380,litigationcostsofCNY25,160,andexecutioncostsofCNY5,290.ThecourthasdecidedinfavoroftheCompany,andtheCompanyhasappliedforenforcement.Thefundsdeductedinpreviousyears
?TheEnglishnameisforidentificationpurposeonly.
havebeenaccountedforaslosses.InApril2006,深圳发展银行(ShenzhenDevelopmentBankCo.,Ltd.
*
)filedalawsuitagainstGintianCompanyforoverduerepaymentofUSD2millionandagainsttheCompanyastheguarantor.AfterpayingtheprincipalofUSD2millionandintereststhereofonbehalfofGintianCompany,theCompanyfiledanappealtoShenzhenLuohuDistrictPeople’sCourt,requestingGintianCompanytorepayfundofUSD2,960,490andintereststhereof.ThroughthemediationfromShenzhenLuohuDistrictPeople’sCourtin2008,acivilmediationagreement((2008)ShenLuoFaMinYiChuZiNo.937)wasissued,anditwasagreedthat:GintianCompanyshallpaytheCompanyUSD2,960,490beforeOctober31,2008,withinterestsexempted;ifGintianCompanyfailstomakepaymentontime,itshallpaytheliquidateddamagesforoverduepaymentbasedontheCNYbenchmarkloaninterestratepublishedbythePeople’sBankofChinaforthesameperiod.GintianCompanywentthroughbankruptcyreorganizationprocess.OnJanuary29,2016,theShenzhenIntermediatePeople’sCourtruledthatthereorganizationplanofGintianCompanywascompletedandthebankruptcyprocesswasterminated.GintianCompanyshallmakeadditionalallocationstocreditorsincludingtheCompanyaccordingtothereorganizationplan,andtheCompanyshouldobtaincashofCNY325,000,Asharesof427,604sharesandBsharesof163,886sharesofGintianCompany.Asofthedateofapprovalforissuingthisfinancialreport,theCompanyhasn’treceivedtheallocatedassets.TheCompanyfiledalawsuittoQianhaiCooperationDistrictPeople’sCourtonAugust15,2018afterrepeatedlyfailedtocommunicatewithJintianCompanyaboutthecashandequitythatshouldbedistributedtotheCompanyafterthebankruptcyandreorganizationofJintianCompany.ThecourtorderedonFebruary13,2020((2018)Yue0391minchuNo.3104civiljudgment)JintianCompanytopayCNY325,000totheCompanywithinfivedaysafterthejudgmentcameintoforce,and427604Asharesand163886BsharesofJintianCompany(ifthesharescan’tbedelivered,theycanbepaidafterbeingconvertedintocashaccordingtothestockmarketpriceonthelastdayoftheperformanceperiod).OnJanuary7,2021,theCompanyappliedforcompulsoryexecutionbyQianhaiCooperationDistrictPeople’sCourt.Inthecurrentperiod,theCourtconfirmedthatthepersonsubjectedtoexecutionshouldpaythecompanyB-sharediscount,preservationfee,delaypaymentandotherfunds,totalingCNY74,358.02.AsofDecember31,2021,thecompanyhasreceivedanexecutionpaymentofCNY326,450.47incash,submittedanapplicationfordiscountandtransferofBsharesandanapplicationfortransferofasharestothecourt,andthetransferhasnotbeencompleted.Note12.EVENTSAFTERTHEREPORTINGPERIOD
12.1ProfitDistributionAccordingtotheprofitdistributionplanfor2021approvedbytheformalmeetingoftheninthboardofdirectorsonApril6,2022,theCompanyplanstodistributecashdividendofCNY0.25(taxincluded)toallshareholdersforevery10shares,with431,058,320totalsharesasthebaseasofDecember31,2021,andatotalofCNY10,776,458.00incash,withoutbonussharesorcapitalreserve.TheaboveprofitdistributionplanhasyettobereviewedandapprovedbythegeneralmeetingofshareholdersoftheCompany.
Note13.OTHERSIGNIFICANTMATTERS
13.1SegmentInformation(a)BasisofidentificationandaccountingpoliciesofreportablesegmentsReportablesegmentsareidentifiedbasedonoperatingsegmentswhicharedeterminedbasedonthestructureoftheCompany’sinternalorganization,managementrequirementsandinternalreportingsystem.TheCompanyidentifiedreportablesegmentsbasedonindustry.Businessperformanceofautosales,vehiclemaintenanceandinspection,leasingandservices,andwholesaleandretailofjewelrywereevaluatedseparately.Assetsandliabilitiessharedbydifferentsegmentsareallocatedbetweensegmentsproportionatetotheirrespectivesize.(b)Financialinformationofreportablesegments
| Items | Autosales | Vehiclemaintenanceandinspection | Leasingandservices | Salesandserviceofjewelry | Inter-segmentoffsetting | Total |
| Revenuefrommainoperations | 194,373,092.47 | 81,491,892.59 | 211,340,991.30 | 59,404,147.76 | -47,727,174.31 | 498,882,949.81 |
| Costofmainoperations | 184,509,794.34 | 71,640,658.58 | 82,859,167.59 | 58,919,409.24 | -47,499,950.81 | 350,429,078.94 |
| Totalassets | 40,699,909.80 | 121,001,290.01 | 2,951,443,326.71 | 82,323,334.76 | -1,335,822,655.85 | 1,859,645,205.43 |
| Totalliabilities | 40,221,145.93 | 78,970,761.95 | 896,703,938.83 | 30,169,014.45 | -643,609,481.53 | 402,455,379.63 |
Note14.NOTESTOTHEMAINITEMSOFTHEFINANCIALSTATEMENTSOFTHEPARENTCOMPANY
14.1AccountsReceivable
(1)Ageanalysis
| Ages | Dec31,2021 | Dec31,2020 |
| Within1year | 117,501.42 | 248,723.43 |
| 1–2years | 3,360.00 | |
| 2–3years | 3,360.00 | |
| Over3years | 484,803.08 | 484,803.08 |
| Subtotal | 605,664.50 | 736,886.51 |
| Less:provisionforbaddebts | 486,650.09 | 487,458.31 |
| Ages | Dec31,2021 | Dec31,2020 |
| Total | 119,014.41 | 249,428.20 |
(2)Detailsoncategories
| Categories | Closingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 484,803.08 | 80.04 | 484,803.08 | 100 | |
| Receivableswithprovisionmadeonacollectivebasis | 120,861.42 | 19.96 | 1,847.01 | 1.53 | 119,014.41 |
| Total | 605,664.50 | 100 | 486,650.09 | 80.35 | 119,014.41 |
(Continued)
| Categories | Openingbalance | ||||
| Bookbalance | Provisionforbaddebts | Carryingamount | |||
| Amount | %tototal | Amount | Provisionproportion(%) | ||
| Receivableswithprovisionmadeonanindividualbasis | 484,803.08 | 65.79 | 484,803.08 | 100 | |
| Receivableswithprovisionmadeonacollectivebasis | 252,083.43 | 34.21 | 2,655.23 | 1.05 | 249,428.20 |
| Total | 736,886.51 | 100 | 487,458.31 | 66.15 | 249,428.20 |
a)Accountsreceivablewithprovisionmadeonanindividualbasis
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) | Reasonsforprovisionmade |
| 深圳笔架山娱乐公司(ShenzhenBijiashan | 172,000.00 | 172,000.00 | 100 | Expectedtobeunrecoverableduetolongages |
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) | Reasonsforprovisionmade |
| EntertainmentCompany?) | ||||
| 龚炎清(GongYanqing) | 97,806.64 | 97,806.64 | 100 | Expectedtobeunrecoverableduetolongages |
| 广州乐敏电脑中心(GuangzhouLeminComputerCenter*) | 86,940.00 | 86,940.00 | 100 | Expectedtobeunrecoverableduetolongages |
| Others | 128,056.44 | 128,056.44 | 100 | Expectedtobeunrecoverableduetolongages |
| Subtotal | 484,803.08 | 484,803.08 | 100 |
b)Accountsreceivablewithprovisionforbaddebtsmadeonacollectivebasis
| Ages | Dec31,2021 | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 117,501.42 | 1,175.01 | 1 |
| 1–2Years | |||
| 2–3Years | 3,360.00 | 672 | 20 |
| Over3years | |||
| Subtotal | 120,861.42 | 1,847.01 | 1.53 |
(continued)
| Ages | Dec31,2020 | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| Within1year | 248,723.43 | 2,487.23 | 1 |
| 1–2Years | 3,360.00 | 168 | 5 |
?
TheEnglishnamesareforidentificationpurposeonly.
| Ages | Dec31,2020 | ||
| Bookbalance | Provisionforbaddebts | Provisionproportion(%) | |
| 2–3Years | |||
| Over3years | |||
| Subtotal | 252,083.43 | 2,655.23 | 1.05 |
SeeNote3.10,fordetailsofrecognitioncriteriaandinstructionsforprovisionforbaddebtsmadeonacollectivebasis.
(3)Changesinprovisionforbaddebts
| Items | Openingbalance | Increase | Decrease | Closingbalance | ||||
| Accrual | Recovery | Others | Reversal | Written-off | Others | |||
| Receivableswithprovisionmadeonanindividualbasis | 484,803.08 | 484,803.08 | ||||||
| Receivableswithprovisionmadeonacollectivebasis | 2,655.23 | -808.22 | 1,847.01 | |||||
| Subtotal | 487,458.31 | -808.22 | 486,650.09 | |||||
(4)Detailsofthetop5debtorswithlargestbalances
| Debtors | Bookbalance | Proportiontothetotalbalanceofaccountsreceivable(%) | Provisionforbaddebts |
| 深圳市金城银域珠宝首饰有限公司(ShenzhenJinchengYinyuJewelryCo.,Ltd.?) | 117,501.42 | 19.4 | 1,175.01 |
| 深圳笔架山娱乐公司(ShenzhenBijiashanEntertainmentCompany) | 172,000.00 | 28.4 | 172,000.00 |
?
TheEnglishnamesareforidentificationpurposeonly.
| Debtors | Bookbalance | Proportiontothetotalbalanceofaccountsreceivable(%) | Provisionforbaddebts |
| 龚炎清(GongYanqing) | 97,806.64 | 16.15 | 97,806.64 |
| 广州乐敏电脑中心(GuangzhouLeminComputerCenter) | 86,940.00 | 14.35 | 86,940.00 |
| 兰州大船电子公司(LanzhouDachuanElectronicsCo.,Ltd.*) | 37,308.00 | 6.16 | 37,308.00 |
| Subtotal | 511,556.06 | 84.46 | 395,229.65 |
14.2OtherReceivables
(1)Detailsbycategory
| Items | Closingbalance | Openingbalance |
| Interestreceivable | ||
| Dividendreceivable | 547,184.35 | 547,184.35 |
| Otherreceivables | 89,854,408.23 | 126,422,912.78 |
| Total | 90,401,592.58 | 126,970,097.13 |
(2)Dividendreceivable(a)Details
| Items | Closingbalance | Openingbalance |
| ChinaPerfectMachineryIndustryCorp.,Ltd. | 547,184.35 | 547,184.35 |
| Total | 547,184.35 | 547,184.35 |
(b)Dividendreceivableover1year
| Items | Closingbalance | Ages | Reasons | Notes |
| ChinaPerfectMachineryIndustryCorp.,Ltd. | 547,184.35 | 2–3years | notyetpaid | Noimpairment |
| Total | 547,184.35 |
(3)Otherreceivables(a)Otherreceivablescategorizedbyages
| Ages | ClosingBalance | OpeningBalance |
| Within1year | 89,818,515.19 | 126,378,704.11 |
| 1–2years | 46,698.00 | |
| 2–3years | 46,698.00 | |
| Over3years | 13,582,945.74 | 13,588,345.66 |
| Subtotal | 103,448,158.93 | 140,013,747.77 |
| Less:provisionforbaddebts | 13,593,750.70 | 13,590,834.99 |
| Total | 89,854,408.23 | 126,422,912.78 |
(b)Otherreceivablescategorizedbynature
| Natureofreceivables | Closingbalance | Openingbalance |
| Temporaryadvancepaymentreceivable | 13,776,179.52 | 13,650,486.51 |
| Relatedtransactionswithintheconsolidationscope | 89,671,979.41 | 126,363,261.26 |
| Total | 103,448,158.93 | 140,013,747.77 |
(c)OtherreceivablescategorizedbymethodsofprovisionforbaddebtsA.Asof2021-12-31,provisionforbaddebtsaccordingtothemodelofphaseI/II/III:
| Phase | Closingbalance | Provisionforbaddebts | Openingbalance |
| I | 89,865,213.19 | 10,804.96 | 89,854,408.23 |
| II | |||
| III | 13,582,945.74 | 13,582,945.74 | |
| Total | 103,448,158.93 | 13,593,750.70 | 89,854,408.23 |
Asof2021-12-31,provisionforbaddebtsatphaseI:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 89,865,213.19 | 0.01 | 10,804.96 | 89,854,408.23 | |
| 1.Portfoliogroupedwithages | 193,233.78 | 5.59 | 10,804.96 | 182,428.82 | nodramaticcreditriskchangeafterconfirmed |
| 2.Portfoliogroupedwithbalancesduefromconsolidatedparties | 89,671,979.41 | 89,671,979.41 | nodramaticcreditriskchangeafterconfirmed | ||
| Total | 89,865,213.19 | 0.01 | 10,804.96 | 89,854,408.23 |
Asof2021-12-31,provisionforbaddebtsatphaseIII:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | 13,582,945.74 | 100 | 13,582,945.74 | creditriskchangedramaticallyafterconfirmed | |
| Total | 13,582,945.74 | 100 | 13,582,945.74 |
B.Asof2020-12-31,provisionforbaddebtsaccordingtothemodelofphaseI/II/III:
| Phase | Closingbalance | Provisionforbaddebts | Openingbalance |
| I | 126,425,402.11 | 2,489.33 | 126,422,912.78 |
| II | |||
| III | 13,588,345.66 | 13,588,345.66 | |
| Total | 140,013,747.77 | 13,590,834.99 | 126,422,912.78 |
Asof2020-12-31,provisionforbaddebtsatphaseI:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | |||||
| Receivableswithprovisionmadeonacollectivebasis | 126,425,402.11 | 0 | 2,489.33 | 126,422,912.78 | |
| 1.Portfoliogroupedwithages | 62,140.85 | 4.01 | 2,489.33 | 59,651.52 | nodramaticcreditriskchangeafterconfirmed |
| 2.Portfoliogroupedwithbalancesduefromconsolidatedparties | 126,363,261.26 | 126,363,261.26 | nodramaticcreditriskchangeafterconfirmed | ||
| Total | 126,425,402.11 | 0 | 2,489.33 | 126,422,912.78 |
Asof2020-12-31,provisionforbaddebtsatphaseIII:
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts | CarryingAmount | Reasonsforprovisionmade |
| Receivableswithprovisionmadeonanindividualbasis | 13,588,345.66 | 100 | 13,588,345.66 | creditriskchangedramaticallyafterconfirmed | |
| Total | 13,588,345.66 | 100 | 13,588,345.66 |
Asof2021-12-31,otherreceivableswithprovisionmadeonanindividualbasis.
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) |
| ShenzhenZhonghao(Group)Co.,Ltd. | 5,000,000.00 | 5,000,000.00 | 100.00 |
| JinbeiliHouseholdAppliancesCo.,Ltd. | 2,706,983.51 | 2,706,983.51 | 100.00 |
| Debtors | Bookbalance | Provisionforbaddebts | Provisionproportion(%) |
| ShenzhenPetrochemical(Group)Co.,Ltd. | 1,898,419.67 | 1,898,419.67 | 100 |
| ShenzhenSDGHuatongPackagingCo.,Ltd. | 1,212,373.79 | 1,212,373.79 | 100.00 |
| ShenzhenXiandaoNewMaterialsCo.,Ltd. | 660,790.09 | 660,790.09 | 100.00 |
| Others | 2,104,378.68 | 2,104,378.68 | 100.00 |
| Total | 13,582,945.74 | 13,582,945.74 | 100 |
Asof2021-12-31,otherreceivableswithprovisionmadeonacollectivebasis.
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 1.Portfoliogroupedwithages | 193,233.78 | 10,804.96 | 5.59 |
| Including:Within1year | 146,535.78 | 1,465.36 | 1 |
| 1–2years | |||
| 2–3years | 46,698.00 | 9,339.60 | 20 |
| Over3years | |||
| 2.Portfoliogroupedwithbalancesduefromconsolidatedparties | 89,671,979.41 | ||
| Total | 89,865,213.19 | 10,804.96 | 0.01 |
Asof2020-12-31,otherreceivableswithprovisionmadeonacollectivebasis.
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 1.Portfoliogroupedwithages | 62,140.85 | 2,489.33 | 4.01 |
| Including:Within1year | 15,442.85 | 154.43 | 1 |
| 1–2years | 46,698.00 | 2,334.90 | 5 |
| 2–3years | |||
| Over3years |
| Catagories | BookBalance | Provisionproportion(%) | Provisionforbaddebts |
| 2.Portfoliogroupedwithbalancesduefromconsolidatedparties | 126,363,261.26 | ||
| Total | 126,425,402.11 | 2,489.33 | 0 |
(d)Changesinprovisionforbaddebts
| Items | PhaseI | PhaseII | PhaseIII | Total |
| 12?monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditnotimpaired) | Lifetimeexpectedcreditlosses(creditimpaired) | ||
| Openingbalance | 2,489.33 | 13,588,345.66 | 13,590,834.99 | |
| Openingbalanceincurrentperiod | ||||
| --TransferredtophaseII | ||||
| --TransferredtophaseIII | ||||
| --ReversedtophaseII | ||||
| --ReversedtophaseI | ||||
| Provisionmadeincurrentperiod | 8,315.63 | -5399.92 | 2,915.71 | |
| Provisionrecoveredincurrentperiod | ||||
| Provisionreversedincurrentperiod | ||||
| Provisionwritten-offincurrentperiod | ||||
| Otherchanges | ||||
| Closingbalance | 10,804.96 | 13,582,945.74 | 13,593,750.70 |
(e)Detailsofthetop5debtorswithlargestbalances
| Debtors | Natureofreceivables | Bookbalance | Ages | Proportiontothetotalbalanceofotherreceivables(%) | Provisionforbaddebts |
| ShenzhenZhongtianIndustrialCo.,Ltd. | Internalaccounts | 88,889,042.29 | Within1year | 85.93 | |
| ShenzhenZhonghao(Group)Co.,Ltd. | Currentaccounts | 5,000,000.00 | Over5years | 4.83 | 5,000,000.00 |
| JinbeiliHouseholdAppliancesCo.,Ltd. | Currentaccounts | 2,706,983.51 | Over5years | 2.61 | 2,706,983.51 |
| ShenzhenPetrochemical(Group)Co.,Ltd. | Currentaccounts | 1,898,419.67 | Over5years | 1.84 | 1,898,419.67 |
| ShenzhenSDGHuatongPackagingCo.,Ltd. | Currentaccounts | 1,212,373.79 | Over5years | 1.17 | 1,212,373.79 |
| Subtotal | 99,706,819.26 | 96.38 | 10,817,776.97 |
14.3Long-termEquityInvestments
(1)Categories
| Items | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Carryingamount | Bookbalance | Provisionforimpairment | Carryingamount | |
| Investmentsinsubsidiaries | 694,745,472.73 | 1,956,000.00 | 692,789,472.73 | 799,743,472.73 | 6,954,000.00 | 792,789,472.73 |
| Investmentsinassociatesandjointventures | 98,098,029.79 | 9,787,162.32 | 88,310,867.47 | 93,758,474.47 | 9,787,162.32 | 83,971,312.15 |
| Total | 792,843,502.52 | 11,743,162.32 | 781,100,340.20 | 893,501,947.20 | 16,741,162.32 | 876,760,784.88 |
(2)Investmentsinsubsidiaries
| Investees | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairmentmadeincurrentperiod | Closingbalanceofprovisionforimpairment |
| ShenzhenSDGTellusRealEstateCo.,Ltd. | 31,152,888.87 | 31,152,888.87 | ||||
| ShenzhenTellusChuangyingTechnologyCo.,Ltd. | 14,000,000.00 | 14,000,000.00 | ||||
| ShenzhenTellusXinyongtongAutomobileDevelopmentCo.,Ltd. | 57,672,885.22 | 57,672,885.22 | ||||
| ShenzhenZhongtianIndustrialCo.,Ltd. | 369,680,522.90 | 369,680,522.90 | ||||
| ShenzhenAutomobileIndustryandTradeCo.,Ltd. | 126,251,071.57 | 126,251,071.57 | ||||
| ShenzhenSDGHuariAutomobileEnterpriseCo.,Ltd. | 19,224,692.65 | 19,224,692.65 | ||||
| ShenzhenHuariToyotaAutoSalesServiceCo.,Ltd. | 1,807,411.52 | 1,807,411.52 | ||||
| ShenzhenXinyongtongAutoVehicleInspectionEquipmentCo.,Ltd. | 10,000,000.00 | 10,000,000.00 |
| Investees | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairmentmadeincurrentperiod | Closingbalanceofprovisionforimpairment |
| SichuanTellusJewelryTechnologyCo.,Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| ShenzhenTellusBaokuSupplyChainTechnologyCo.,Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| ShenzhenHanecoTechnologiesCeramicsCo.,Ltd. | 1,956,000.00 | |||||
| ShenzhenJewelryIndustryServiceCo.,Ltd | 13,000,000.00 | 13,000,000.00 | ||||
| Subtotal | 792,789,472.73 | 100,000,000.00 | 692,789,472.73 | 1,956,000.00 |
(3)Investmentsinassociatesandjointventures
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| Jointventures | |||||
| ShenzhenTellusJimengInvestmentCo.,Ltd. | 37,666,741.13 | 9,823,999.65 | |||
| ShenzhenTellusXingInvestmentCo.,Ltd. | 12,697,424.88 | 754,797.47 | |||
| Subtotal | 50,364,166.01 | 10,578,797.12 | |||
| Associates | |||||
| ShenzhenRenfuTellus | 33,607,146.14 | 7,760,758.20 | |||
| Investees | Openingbalance | Increase/Decrease | |||
| Investmentsincreased | Investmentsdecreased | Investmentincomerecognizedunderequitymethod | Adjustmentinothercomprehensiveincome | ||
| AutomobilesServiceCo.,Ltd. | |||||
| HunanChangyangIndustrialCo.,Ltd. | |||||
| ShenzhenJiechengElectronicCo.,Ltd. | |||||
| ShenzhenXiandaoNewMaterialsCo.,Ltd. | |||||
| Subtotal | 33,607,146.14 | 7,760,758.20 | |||
| Total | 83,971,312.15 | 18,339,555.32 | |||
(Continued)
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| Jointventures | ||||||
| ShenzhenTellusJimengInvestmentCo.,Ltd. | 47,490,740.78 | |||||
| ShenzhenTellusXingInvestmentCo.,Ltd. | 13,452,222.35 | |||||
| Subtotal | 60,942,963.13 | |||||
| Associates | ||||||
| ShenzhenRenfuTellusAutomobileServiceCo.,Ltd. | 14,000,000.00 | 27,367,904.34 | ||||
| HunanChangyangIndustrialCo.,Ltd. | 1,810,540.70 | |||||
| Investees | Increase/Decrease | Closingbalance | Closingbalanceofprovisionforimpairment | |||
| Changesinotherequity | Cashdividend/profitdeclaredfordistribution | Provisionforimpairment | Others | |||
| ShenzhenJiechengElectronicCo.,Ltd. | 3,225,000.00 | |||||
| ShenzhenXiandaoNewMaterialsCo.,Ltd. | 4,751,621.62 | |||||
| Subtotal | 14,000,000.00 | 27,367,904.34 | 9,787,162.32 | |||
| Total | 14,000,000.00 | 88,310,867.47 | 9,787,162.32 | |||
14.4Operatingrevenue/Operatingcost
| Items | Currentperiodcumulative | Precedingperiodcomparative | ||
| Revenue | Cost | Revenue | Cost | |
| Mainoperations | 50,382,988.38 | 15,225,250.76 | 37,241,063.15 | 10,754,749.28 |
| Total | 50,382,988.38 | 15,225,250.76 | 37,241,063.15 | 10,754,749.28 |
14.5InvestmentIncome
| Items | Currentperiodcumulative | Precedingperiodcomparative |
| Investmentincomefromlong-termequityinvestmentsundercostmethod | 8,400,304.32 | |
| Investmentincomefromlong-termequityinvestmentsunderequitymethod | 18,339,555.32 | 22,156,744.28 |
| Gainsondisposaloflong-termequityinvestments | 3,777,307.13 | |
| Investmentincomefromfinancialinstruments | 6,070,326.25 | 3,270,243.48 |
| Total | 28,187,188.70 | 33,827,292.08 |
Note15.OtherSUPPLEMENTARYINFORMATION
15.1Non-recurringprofitorloss
1.Scheduleofnon-recurringprofitorlossofcurrentperiod
| Items | 2021 | 2020 |
| Gainsondisposalofnon-currentassets,includingwritten-offofprovisionforimpairment | 66,654,129.65 | 1.00 |
| Taxrefund,creditorexemptionapprovedbeyondthepowerofauthorities,withoutformaldocuments,orwithoccasionality | ||
| Governmentgrantincludedinprofitorloss(excludingthosecloselyrelatedtooperatingactivities,orregulargovernmentgrants) | 2,923,779.58 | 1,522,079.42 |
| Fundpossessionchargefromnon-financialentitiesandincludedinprofitorloss | 629,671.75 | 435,887.15 |
| Gainsonacquisitionofsubsidiaries,jointventuresandassociatesduetothesurplusofacquisition-datefairvalueofnetidentifiableassetsinacquireeovertheacquisitioncost | ||
| Gainsonnon-cashassetsexchange | ||
| Gainsonassetsconsignedtothethirdpartyforinvestmentormanagement | ||
| Assetsimpairmentlossincurredduetoforcemajeuresuchasnaturaldisasters | ||
| Gainsondebtrestructuring | ||
| Entityrestructuringexpenses,suchasstaffingandintegratingexpenses | ||
| Gainsontransactionswithunfairvalue | ||
| Netprofitgainsonsubsidiariesacquiredthroughbusinesscombinationundercommoncontrolfromthebeginningoftheperiodtothecombinationdate | ||
| Contingentgainsonnon-operatingactivities | ||
| Gainsonchangesinfairvalueofheld-for-tradingfinancial | 10,073,533.17 | 8,812,468.26 |
| Items | 2021 | 2020 |
| assetsandliabilitiesandinvestmentincomefromdisposalofheld-for-tradingfinancialassetsandliabilities,andavailable-for-salefinancialassets,excludingthosearisingfromhedgingbusinessrelatedtooperatingactivities | ||
| Thereversedprovisionforimpairmentofreceivablesbasedonimpairmenttestingonanindividualbasis | 493,295.33 | |
| Gainsondesignatedloans | ||
| Gainsonchangesinfairvalueofinvestmentpropertieswithsubsequentmeasurementatthefairvaluemode | ||
| Gainsonreconciliationofcurrentperiodprofitorlossfollowinglegalandregulativerequirements | ||
| Managementchargesforconsignedoperations | ||
| Othernon-operatingrevenueorexpenditures | 730,552.50 | 3,196,406.42 |
| Otherprofitorlosssatisfyingthedefinitionofnon-recurringprofitorloss | 46,275.77 | 44,839.26 |
| Subtotal | 81,057,942.42 | 14,504,976.84 |
| Less:Enterpriseincometaxaffected | 19,790,228.25 | 3,123,780.55 |
| Non-controllinginterestaffected(aftertax) | 1,977,988.66 | 1,437,257.12 |
| Netnon-recurringprofitorlossattributabletoshareholdersoftheparentcompany | 59,289,725.51 | 9,943,939.17 |
15.2RONAandEPS
1.Yearof2021
| Profitofthereportingperiod | WeightedaverageRONA(%) | EPS(yuan/share) | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoshareholdersofordinaryshares | 9.56 | 0.3 | 0.3 |
| Netprofitattributabletoshareholdersofordinarysharesafterdeductingnon-recurringprofitorloss | 5.23 | 0.17 | 0.17 |
2.Yearof2020
| Profitofthereportingperiod | WeightedaverageRONA(%) | EPS(yuan/share) | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoshareholdersofordinaryshares | 4.48 | 0.13 | 0.13 |
| Netprofitattributabletoshareholdersofordinarysharesafterdeductingnon-recurringprofitorloss | 3.71 | 0.11 | 0.11 |