Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Financial Report 2024
August 2024
1Financial Report
I. Audit report
Whether the semi annual report is audited
□Yes □No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried Unit: RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
June 30 2024
Unit: RMB/CNY
Item 2024-6-30 2024-1-1
Current assets:
Monetary fund 25165558.37 54148674.40
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 234545442.91 196293133.00
Receivable financing
Accounts paid in advance 3806346.43 3821181.16
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 697860.12 12868327.03
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory 88113620.75 81916039.14
Including：Data resources
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 5650306.39 11216095.44
Total current assets 357979134.97 360263450.17
Non-current assets:
Loans and payments on behalf
Debt investment
2Other debt investment
Long-term account receivable
Long-term equity investment 30000.00
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fix assets 2229476.84 2288610.10
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets 1388912.22 1816269.83
Intangible assets
Including：Data resources
Expense on Research and Development
Including：Data resources
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 4748543.50 4909164.22
Other non-current asset 400000.00
Total non-current asset 8396932.56 9414044.15
Total assets 366376067.53 369677494.32
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 4649649.09 6213665.02
Accounts received in advance
Contract liability 527792.26 633114.64
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 1032093.43 1149151.81
Taxes payable 884008.39 11297756.46
Other account payable 33107549.28 39034314.13
Including: Interest payable
Dividend payable
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 873605.52 847403.05
Other current liabilities 68612.99 82304.90
Total current liabilities 41143310.96 59257710.01
3Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 573573.50 1018630.12
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 573573.50 1018630.12
Total liabilities 41716884.46 60276340.13
Owner’s equity:
Share capital 689184933.00 689184933.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 779554450.36 779554450.36
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32673227.01 32673227.01
Provision of general risk
Retained profit -1186933721.52 -1192651364.21
Total owner’ s equity attributable to parent
314478888.85308761246.16
company
Minority interests 10180294.22 639908.03
Total owner’ s equity 324659183.07 309401154.19
Total liabilities and owner’ s equity 366376067.53 369677494.32
Legal Representative: Wang Shenghong
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: She Hanxing
2. Balance Sheet of Parent Company
I n RMB
Item 2024-6-30 2024-1-1
Current assets:
Monetary fund 14317442.17 13378843.17
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 82213794.19 185121769.23
Receivable financing
Accounts paid in advance 42920.72 10066139.77
Other account receivable 86984000.02 17300576.60
4Including: Interest receivable
Dividend receivable
Inventory 39057209.04 58463627.32
Including：Data resources
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 383849.27
Total current assets 222999215.41 284330956.09
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 125760379.73 120510379.73
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fix assets 1975914.75 2052548.31
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets
Including：Data resources
Expense on Research and Development
Including：Data resources
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 4514826.56 4587566.82
Other non-current asset 400000.00
Total non-current asset 132251121.04 127550494.86
Total assets 355250336.45 411881450.95
Current liabilities:
Short-term loans
Trading financial liability
Derivative financial liability
Note payable
Account payable 79023.79 2660407.22
Accounts received in advance 10000000.00
Contract liability
Wage payable 509163.43 381092.87
Taxes payable 558089.47 10988473.35
Other account payable 28940855.09 86300406.58
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one year
5Other current liabilities
Total current liabilities 40087131.78 100330380.02
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 40087131.78 100330380.02
Owner’s equity:
Share capital 689184933.00 689184933.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 790922522.71 790922522.71
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32673227.01 32673227.01
Retained profit -1197617478.05 -1201229611.79
Total owner’ s equity 315163204.67 311551070.93
Total liabilities and owner’ s equity 355250336.45 411881450.95
3. Consolidated Profit Statement
Unit: RMB/CNY
Item Semi-annual of 2024 Semi-annual of 2023
I. Total operation revenue 213499597.25 292999162.50
Including: Operation revenue 213499597.25 292999162.50
Interest income
Insurance gained
Commission charge and commission
income
II. Total operation cost 207306438.18 285545357.24
Including: Operation cost 200995029.52 278484152.74
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
6Bonus expense of guarantee slip
Reinsurance expense
Tax and surcharge 151502.35 129697.74
Sales expenses 1778393.48 2522214.01
Administration expenses 3928458.71 4130652.80
R&D expenses 454213.62 336970.90
Finance expenses -1159.50 -58330.95
Including: Interest expenses 25397.71
Interest income 60794.91 70100.25
Add: Other income 2092.35
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated
company and joint venture
The termination of income recognition for
financial assets measured by amortized
cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss is
listed with “-”)
Loss of credit impairment (Loss is listed
254919.43328289.79
with “-”)
Impairment loss on assets(Loss is listed
8123.50
with “-”)
Income from assets disposal (Loss is listed
with “-”)III. Operation profit (Loss is listed with “-
6456202.007784187.40
”)
Add: Non-operating income 1240262.87 1253150.81
Less: Non-operating expense 60128.00 1462822.69
IV. Total profit (Loss is listed with “-”) 7636336.87 7574515.52
Less: Income tax expenses 2128307.99 1637455.56
V. Net profit (Net loss is listed with “-”) 5508028.88 5937059.96
(i) Classify by business continuity
1.Continuous operating net profit (net loss
5508028.885937059.96listed with ‘-”)
2.Termination of net profit (net loss listedwith ‘-”)
(ii) Classify by ownership
1.Net profit attributable to shareholders of
5717642.694862298.90parent company (net loss listed with ‘-”)
2.Minority shareholders’ gains and
-209613.811074761.06losses (net loss listed with ‘-”)
VI. Net other comprehensive income after
taxation
Net other comprehensive income
attributable to owners of parent company
after taxation
(i) Other comprehensive income items
which will not be reclassified subsequently
to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to
7gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.Amount of financial assets re-classify to
other comprehensive income
4.Credit impairment provision for other
debt investment
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial
statements
7.Other
Net other comprehensive income
attributable to minority shareholders after
taxation
VII. Total comprehensive income 5508028.88 5937059.96
Total comprehensive income attributable to
5717642.694862298.90
owners of parent Company
Total comprehensive income attributable to
-209613.811074761.06
minority shareholders
VIII. Earnings per share:
(i)Basic EPS 0.0083 0.0071
(ii)Diluted EPS 0.0083 0.0071
As for the enterprise combined under the same control net profit of 0.00Yuan achieved by the merged party
before combination while 0.00 Yuan achieved last period.Legal Representative: Wang Shenghong
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: She Hanxing
4. Profit Statement of Parent Company
Unit: RMB/CNY
Item Semi-annual of2024 Semi-annual of2023
I. Operation revenue 42842025.55 26202365.96
Less: Operation cost 37134145.84 23417894.55
Tax and surcharge 31409.40 31208.15
Sales expenses 42828.78 120346.23
Administration expenses 1986875.83 2129147.35
R&D expenses 224047.20
Finance expenses 957.31 -39733.30
Including: Interest expenses
Interest income 5696.20 43606.56
Add: Other income 2085.77
Investment income (Loss is listed with “-”)
8Including:Investment income on affiliated
company and joint venture
The termination of income recognition for
financial assets measured by amortized
cost(Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss is
listed with “-”)
Loss of credit impairment (Loss is listed
290961.03648901.39
with “-”)
Impairment loss on assets(Loss is listed
with “-”)
Income from assets disposal (Loss is listed
with “-”)
II. Operation profit(Loss is listed with “-”) 3712722.22 1194490.14
Add: Non-operating income 1200994.87 1253150.81
Less: Non-operating expense 56908.19 1452347.65
III. Total profit (Total losses are listed with
4856808.90995293.30
“-”)
Less: Income tax expenses 1244675.16 82966.60
IV. Net profit (Net loss is listed with “-”) 3612133.74 912326.70
(i)Continuous operating net profit (net
3612133.74912326.70loss listed with ‘-”)
(ii)Termination of net profit (net losslisted with ‘-”)
V. Net other comprehensive income after
taxation
(i) Other comprehensive income items
which will not be reclassified subsequently
to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to
gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.Amount of financial assets re-classify to
other comprehensive income
4.Credit impairment provision for other
debt investment
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial
statements
7.Other
VI. Total comprehensive income 3612133.74 912326.70
VII. Earnings per share:
(i)Basic EPS
9(ii)Diluted EPS
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item Semi-annual of2024 Semi-annual of2023
I. Cash flows arising from operating
activities:
Cash received from selling commodities
208540289.21428649719.53
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other
financial institution
Cash received from original insurance
contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Cash received from interest commission
charge and commission
Net increase of capital borrowed
Net increase of capital from repurchase
business
Net cash received by agents in sale and
purchase of securities
Write-back of tax received
Other cash received concerning operating
12931342.0913328115.67
activities
Subtotal of cash in-flow arising from
221471631.30441977835.20
operation activity
Cash paid for purchasing commodities and
257584685.85464456329.67
receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central bank and
interbank
Cash paid for original insurance contract
compensation
Net increase of capital lent
Cash paid for interest handling charge and
commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff 4191369.89 3788625.70
Taxes paid 6814606.57 3747529.15
Other cash paid concerning operating 4209777.81 5349724.34
activities
Subtotal of cash out-flow arising from 272800440.12 477342208.86
operation activity
Net cash flow arising from operating -51328808.82 -35364373.66
activities
II. Cash flows arising from investing
activities:
Cash received from recovering investment
Cash received from investment income
Net cash received from disposal of fixed
10intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash in-flow arising from
investment activity
Cash paid for purchasing fixed
38793.99
intangible and other long-term assets
Cash paid for investment 30000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
Subtotal of cash out-flow arising from 68793.99
investment activity
Net cash flow arising from investment -68793.99
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing investment 9750000.00
Including: Cash received from absorbing
minority shareholders’ investment by
subsidiaries
Cash received from loans
Other cash received concerning financing
12098051.76
activities
Subtotal of cash in-flow arising from
21848051.76
financing activity
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning financing
activities
Subtotal of cash out-flow arising from
financing activity
Net cash flow arising from financing
21848051.76
activities
IV. Influence on cash and cash equivalents
due to fluctuation in exchange rate
V. Net increase of cash and cash equivalent -29549551.05 -35364373.66
Add: Balance of cash and cash
54148674.4050922869.35
equivalents at the period -begin
VI. Balance of cash and cash equivalents at
24599123.3515558495.69
the period -end
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item Semi-annual of2024 Semi-annual of2023
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 159622320.49 238002296.41
services
Write-back of tax received
Other cash received concerning
32892557.2289429332.20
operating activities
Subtotal of cash inflow arising from 192514877.71 327431628.61
11operating activities
Cash paid for purchasing
22193155.15128040000.00
commodities and receiving labor service
Cash paid to/for staff and workers 2061971.12 648889.48
Taxes paid 5466087.76 1447813.31
Other cash paid concerning
169094699.79155328861.74
operating activities
Subtotal of cash outflow arising from
198815913.82285465564.53
operating activities
Net cash flow arising from operating
-6301036.1141966064.08
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed
intangible and other long-term assets
Cash paid for investment 5250000.00 75000000.00
Net cash received from subsidiaries
and other units obtained
Other cash paid concerning investing
activities
Subtotal of cash outflow from investing
5250000.0075000000.00
activities
Net cash flow arising from investment
-5250000.00-75000000.00
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
12098051.76
financing activities
Subtotal of cash inflow from financing
12098051.76
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning financing
activities
Subtotal of cash outflow from financing
activities
Net cash flow arising from financing
12098051.76
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
547015.65-33033935.92
equivalents
Add: Balance of cash and cash
13378843.1740403702.70
equivalents at the period -begin
VI. Balance of cash and cash equivalents
13925858.827369766.78
at the period -end
127. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
Unit: RMB/CNY
Semi-annual of 2024
Owners’ equity attributable to the parent Company
Other equity instrument
Item Perpet Less: Other Provisi
Capital Reasona Surplus
Minority Total owner’
Share ual Invent comprehen on of Retained Oth
Prefer Oth public ble public Subtotal
interests s equity
capital capital ory sive genera profit er
red er reserve reserve reserve
securit shares income l risk
stock
ies
I. The
ending 68918 -
77955445032673227.308761246309401154
balance of 4933.0 1192651364 639908.03.3601.16.19
the previous 0 .21
year
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Other
II. The
beginning 68918 -
77955445032673227.308761246309401154
balance of 4933.0 1192651364 639908.03.3601.16.19
the current 0 .21
year
III. Increase/
Decrease in
the period 5717642.6 9540386.1 15258028.
5717642.69
(Decrease is 9 9 88
listed with
“-”)
(i) Total 5717642.6 5508028.8
5717642.69-209613.81
comprehensi 9 8
13ve income
(ii) Owners’
devoted and 9750000.0 9750000.0
decreased 0 0
capital
1.Common
shares 9750000.0 9750000.0
invested by 0 0
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned
into owners
equity with
share-based
payment
4. Other
(iii) Profit
distribution
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution
for owners
(or
shareholders
)
4. Other
(iv)
Carrying
forward
internal
owners’
14equity
1. Capital
reserves
conversed to
capital
(share
capital)
2. Surplus
reserves
conversed to
capital
(share
capital)
3.
Remedying
loss with
surplus
reserve
4. Carry-
over
retained
earnings
from the
defined
benefit
plans
5. Carry-
over
retained
earnings
from other
comprehensi
ve income
6. Other
(v)
Reasonable
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
15(vi) Others
IV. Balance 68918 -
77955445032673227.31447888810180294.324659183
at the end of 4933.0 1186933721.3601.8522.07
the period 0 .52
Amount of the previous period
Unit: RMB/CNY
Semi-annual of2023
Owners’ equity attributable to the parent Company
Other equity instrument
Item Total Perpet Less: Other ProvisiCapital Reasona Surplus Minority
Share Invent comprehen on of Retained Oth owner’ s ual interests
capital Preferr Oth
public ble public Subtotal
capital ory sive genera profit er
equity
ed er reserve reserve reserve
securit shares income l risk
stock
ies
I. The
ending
-
balance of 68918493 77882447 3267322 29012931 1471823 30484754
12105533
the 3.00 0.95 7.01 8.51 1.05 9.56
12.45
previous
year
Add:
Changes
of
accounting
policy
Error
correction
of the last
period
Other
II. The
beginning -
6891849377882447326732229012931147182330484754
balance of 12105533
3.000.957.018.511.059.56
the current 12.45
year
III.Increase/ 4862298.9 4862298. 1074761. 5937059.Decrease 0 90 06 96
in the
16period
(Decrease
is listed
with “-”)
(i) Total
comprehen 4862298.9 4862298. 1074761. 5937059.sive 0 90 06 96
income
(ii)
Owners’
devoted
and
decreased
capital
1.Common
shares
invested
by
shareholde
rs
2. Capital
invested
by holders
of other
equity
instrument
s
3. Amount
reckoned
into
owners
equity
with share-
based
payment
4. Other
(iii) Profit
distributio
n
1.
Withdrawa
l of surplus
reserves
2.
17Withdrawa
l of
general
risk
provisions
3.
Distributio
n for
owners (or
shareholde
rs)
4. Other
(iv)
Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed
to capital
(share
capital)
2. Surplus
reserves
conversed
to capital
(share
capital)
3.
Remedyin
g loss with
surplus
reserve
4. Carry-
over
retained
earnings
from the
defined
benefit
plans
5. Carry-
18over
retained
earnings
from other
comprehen
sive
income
6. Other
(v)
Reasonabl
e reserve
1.
Withdrawa
l in the
report
period
2. Usage
in the
report
period
(vi) Others
IV.-
Balance at 68918493 77882447 3267322 29499161 1579299 31078460
12056910
the end of 3.00 0.95 7.01 7.41 2.11 9.52
13.55
the period
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
Unit: RMB/CNY
Semi-annual of 2024
Other equity instrument
Item Perpetua Less: Other Capital public Reasonabl Surplus Othe Total owner’ s
Share capital l capital Othe Inventor comprehensiv Retained profit
Preferre reserve e reserve public reserve r equity
securitie r y shares e income
d stock
s
I. The ending -
689184933.0790922522.732673227.0311551070.9
balance of the 1201229611.7
0113
previous year 9
19Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. The
-
beginning 689184933.0 790922522.7 32673227.0 311551070.9
1201229611.7
balance of the 0 1 1 3
9
current year
III. Increase/
Decrease in
the period
3612133.743612133.74
(Decrease islisted with “-”)
(i) Total
comprehensiv 3612133.74 3612133.74
e income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
payment
4. Other
(iii) Profit
distribution
1. Withdrawal
20of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(v)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in
the report
21period
(vi) Others
IV. Balance at -
689184933.0790922522.732673227.0315163204.6
the end of the 1197617478.0
0117
period 5
Amount of the previous period
Unit: RMB/CNY
Semi-annual of2023
Other equity instrument
Item Perpetua Less: Other
Capital public Reasonabl Surplus Othe Total owner’ s Share capital l capital Othe Inventor comprehensiv Retained profit
Preferre reserve e reserve public reserve r equity
securitie r y shares e income
d stock
s
I. The ending -
689184933.0778824470.932673227.0285300915.1
balance of the 1215381715.7
0517
previous year 9
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. The
-
beginning 689184933.0 778824470.9 32673227.0 285300915.1
1215381715.7
balance of the 0 5 1 7
9
current year
III. Increase/
Decrease in
the period
912326.70912326.70
(Decrease islisted with “-”)
(i) Total
comprehensiv 912326.70 912326.70
e income
(ii) Owners’
devoted and
decreased
capital
221.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
payment
4. Other
(iii) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4. Carry-over
23retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(v)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in
the report
period
(vi) Others
IV. Balance at -
689184933.0778824470.932673227.0286213241.8
the end of the 1214469389.0
0517
period 9
24III. Basic information
1. Company Profile
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen
Shenzhen China Bicycle Company (Holdings) Co. Ltd. (hereinafter referred to as the CBC) was reincorporated as
the company limited by shares in November 1991. On 28 December 1991 upon the Approval Document
SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China the
Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689184933.00 Yuan.Legal representative: Wang Shenghong
Location: No. 3008 Buxin Road Luohu District Shenzhen
Office address: 8/F Shuibei Jinzuo Building No.89 Beili North Road Cuizhu Street Luohu District Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524。
2. Business nature and main operation activities
Main business activities: Research & development of the bicycles electric bicycles electric motorcycles
motorcycles electric tricycles electric four-wheeler children's bicycles exercise bikes sports equipment
mechanical products toys electric toys electronic products new energy equipment and storage equipment
(lithium batteries batteries etc.) household appliances and spare parts and electronic components; wholesale
retail import and export and related supporting business of above-mentioned products (excluding commodities
subject to state trade management handling the application according to the relevant national regulations for
commodities involving quotas license management and other special provisions and management); fine chemical
products (excluding dangerous goods) wholesale and retail of carbon fiber composite materials; technology
development of computer software transfer of self-developed technological achievements and providing relevant
technical information consultation; own property leasing; property management. (The above projects do not
involve special administrative measures for the implementation access of national regulations and those involving
restricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing
documents before operation.) Purchase and sale of gold products platinum jewelry palladium jewelry K-gold
jewelry silver jewelry inlaid jewelry jewelry jade ware gem-and-jade products clocks and watches precious
metal materials diamonds jadeite crafts (except ivory and its products) calligraphy and painting collection
(except for antiques cultural relics and items prohibited by national laws and administrative regulations).Main products or services currently offered are: Gold jewelry EMMELLE bicycles and electrical bicycles
lithium battery material.
3.Actual controller of the Company
Actual controller of the Company is Wang Shenghong The controlling shareholder is Wansheng Industrial
Holding (Shenzhen) Co. Ltd.who held or controlled 20% shares of the Company.
4. Release of the financial report
The Financial Report was approved to report at the 14th Session of 11th BOD of CBC on August 23 2024.
25IV. Compilation Basis of Financial Statement
1. Compilation Basis
On the basis of going concern the Company recognizes and measures according to the actual transactions
and events the Accounting Standards for Business Enterprises-Basic Standards and other specific accounting
standards application guidelines standard interpretation and other relevant provisions (hereinafter referred to as
the Accounting Standards for Business Enterprises) and on this basis it compiles the financial statements in
combination with the provisions of the No.15 Rules on Information Disclosure and Compilation of Companies
Offering Securities to the Public - General Provisions on Financial Reports (revised in 2023) issued by China
Securities Regulatory Commission.
2. Going concern
The Company has the ability to continue to operate for at least 12 months from the end of this reporting period
and there is no major issue affecting its ability to continue to operate.V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards for business enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company's financial status operating results changes
in owners' equity and cash flow and other relevant information.
2. Accounting period
Calendar year is the accounting period for the CBC which is starting from 1 January to 31 December.
3. Business cycles
The Company takes 12 months as a business cycle.
4. Book-keeping currency
The CBC takes RMB as the standard currency for bookkeeping.
5.Determination method and selection basis of importance standard
□Applicable □Not applicable
Item Criterion of importance
Commercial acceptance bills receivable accounts receivable
Material receivables with bad debt provision accrued
and other receivables with a single amount exceeding RMB 5
individually
million (inclusive)
Material amount recovered or reversed from bad debt provision
The single amount exceeds RMB 5 million (inclusive)
of receivables in the current period
Write-off of Important material receivables in the current
The single amount exceeds RMB 5 million (inclusive)
period
26Material prepayments with an age of more than one year The single amount exceeds RMB 5 million (inclusive)
Material accounts payable with an age of over 1 year The single amount exceeds RMB 5 million (inclusive)
Material contractual liabilities with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Material other payables with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Construction in progress with a single amount exceeding RMB
Material construction in progress
5 million (inclusive)
Commitments involving an amount of more than 10% of the
Material commitments
total profit and more than RMB 5 million (inclusive)
Contingencies involving an amount of more than 10% of the
Material contingencies
total profit and more than RMB 5 million (inclusive)
Matters after the balance sheet date involving an amount
Material matters after the balance sheet date exceeding 10% of the total profit and exceeding RMB 5 million
(inclusive)
6. Accounting treatment for business combinations under the same control and those not under the same
control
1. Business merger under the same control: The assets and liabilities acquired by the Company in business
merger are measured according to the book value of the assets and liabilities of the merged party (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) in the consolidated
financial statements of the ultimate controlling party on the date of merger. For the difference between the book
value of the net assets obtained in the merger and the book value of the merger consideration paid (or the total
face value of the issued shares) adjust the capital premium or share capital premium in the capital reserve. If
the capital premium or share capital premium in the capital reserve is insufficient to offset adjust the retained
income.
2. Business merger not under the same control: The assets paid liabilities incurred or assumed by the Company
as the consideration for business merger are measured at fair value on the date of purchase and the difference
between fair value and book value is included in the current profits and losses. The Company recognizes the
difference between the merger cost and the fair value share of the net identifiable assets of the acquiree obtained
in the merger as goodwill; For the difference between the merger cost and the fair value share of the net
identifiable assets of the acquiree (which is larger than the merger cost) it reviews the fair values of the assets
and liabilities obtained in the merger the non-cash assets as the merger consideration or the equity securities
issued and the review results show that the determination of the fair values of the determined identifiable assets
and liabilities is appropriate. The difference between the business merger cost and the fair value share of the net
identifiable assets of the acquiree (which is larger than the business merger cost) is included in the non-
operating income in the current merger period.The business merger not under the same control is realized step by step through multiple transactions and
the merger cost is the sum of the consideration paid on the date of purchase and the fair value of the equity of
the acquiree held before the date of purchase; The equity of the purchased party held before the date of purchase
shall be re-measured according to the fair value on the date of purchase and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
273. Disposal of related expenses in business merger: Intermediary expenses such as audit legal services
evaluation and consultation and other related management expenses incurred for business merger are included
in current profits and losses when incurred; The transaction costs of equity securities or debt securities issued as
the merger consideration are included in the initial recognition amount of equity securities or debt securities.
7. Criteria for control and preparation method of consolidated financial statements
1. Criteria for control and preparation scope of consolidated statements
Control means that the investor has the power over the investee enjoys variable returns by participating in
the related activities of the investee and has the ability to influence the amount of returns by using the power
over the investee. As for whether to control the investee the Company's criterion factors include:
(1) Have the power over the investee and the ability to lead the related activities of the investee;
(2) Be entitled to variable returns to the investee;
(3) Have the ability to use the power over the investee to influence its return amount.
Unless there is conclusive evidence that the Company cannot lead the related activities of the investee the
Company has the power over the investee if:
(1) It holds more than half of the voting rights of the investee;
(2) It holds half or less of the voting rights of the investee but controls more than half of the voting rights
through agreements with other voting rights holders.If the Company holds half or less of the voting rights of the investee but after comprehensive
consideration of the following facts and circumstances it is judged that the voting rights held are sufficient to
lead the relevant activities of the investee it is deemed that the Company has power over the investee:
(1) The size of the voting rights held relative to the voting rights held by other investors and the degree of
dispersion of the voting rights held by other investors;
(2) The potential voting rights of the investee held by other investors such as convertible corporate bonds
and executable warrants;
(3) Other contractual rights;
(4) Other relevant facts and circumstances such as the past voting rights of the investee.
The Company evaluates the variability of returns based on the nature of contractual arrangements rather
than the legal form of returns.If the Company exercises the decision-making power as the main responsible person or if other parties
have the decision-making power and other parties exercise the decision-making power as the agents of the
Company it shows that the Company controls the investee.Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved in
the definition of control the Company will re-evaluate.The scope of consolidation of the consolidated financial statements is determined on the basis of control
including not only subsidiaries determined by voting rights (or similar rights) themselves or in combination
with other arrangements but also structured entities determined by one or more contractual arrangements.
2. Merger procedure
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries and are prepared according to other relevant information.The Company unifies the accounting policies and accounting periods adopted by its subsidiaries so that
the accounting policies and accounting periods adopted by its subsidiaries are consistent with those adopted by
the Company. When preparing consolidated financial statements it follows the principle of materiality to offset
28the internal exchanges internal transactions and equity investment projects between the parent company and the
subsidiaries and between the subsidiaries.The equity and profit and loss attributable to minority shareholders of the subsidiaries are listed separately
under the item of the owners' equity in the consolidated balance sheet and under the item of net profit in the
consolidated income statement. The current loss shared by minority shareholders of a subsidiary exceeds the
balance formed by minority shareholders' share in the initial owners' equity of the subsidiary thus offsetting
minority shareholders' equity.
(1) Increase of subsidiaries and businesses
During the reporting period when preparing the consolidated balance sheet due to the business merger
under the same control and the subsidiaries and businesses increased the opening balance of the consolidated
balance sheet is adjusted; When preparing the income statement the income expenses and profits of the
subsidiary and business merger from the beginning of the current period to the end of the reporting period are
included in the consolidated income statement; When the cash flow statement is consolidated the cash flows of
the subsidiary and the business combination from the beginning of the current period to the end of the reporting
period are included in the consolidated cash flow statement; At the same time the relevant items of the
comparative statements shall be adjusted as if the merged reporting entity had existed since the ultimate
controlling party started to control.During the reporting period when preparing the consolidated balance sheet for subsidiaries and businesses
increased due to business merger not under the same control or other means the opening balance of the
consolidated balance sheet will not be adjusted. When preparing the income statement the income expenses
and profits of the subsidiary and the business from the date of purchase to the end of the reporting period shall
be included in the consolidated income statement. When preparing the cash flow statement the cash flow of the
subsidiary from the date of purchase to the end of the reporting period shall be included in the consolidated cash
flow statement.The Company prepares consolidated financial statements based on the amount of identifiable assets
liabilities and contingent liabilities determined on the basis of the fair value on the date of purchase reflected in
the individual financial statements of subsidiaries at the current balance sheet date. The difference between the
merger cost and the fair value share of the net identifiable assets of the acquiree obtained in the merger shall be
recognized as goodwill. The difference between the merger cost and the fair value share of the net identifiable
assets of the acquiree obtained in the merger shall be included in the current profits and losses after review.If the business merger not under the same control is realized step by step through multiple transactions in
the consolidated financial statements the equity of the acquiree held before the date of purchase shall be re-
measured according to the fair value of the equity on the date of purchase and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
(2) Disposal of subsidiaries and businesses
A. General disposal methods
29During the reporting period if the Company disposes of its subsidiaries and businesses the income
expenses and profits of the subsidiaries and businesses from the beginning to the disposal date will be included
in the consolidated income statement; The cash flow of the subsidiaries and businesses from the beginning to
the disposal date will be included in the consolidated cash flow statement.If the Company loses control of its original subsidiaries due to the disposal of some equity investments
the remaining equity shall be re-measured according to its fair value on the date of loss of control in the
consolidated financial statements. The sum of the consideration obtained from the disposal of the equity and the
fair value of the remaining equity minus the difference between the share of the net assets that should be
continuously calculated by the original subsidiary from the date of purchase or the date of merger according to
the original shareholding ratio is included in the current investment income when the control right is lost and
the goodwill is also offset. Other comprehensive income related to the original subsidiary's equity investment
shall be subject to accounting treatment on the same basis as the subsidiary's direct disposal of relevant assets or
liabilities when it loses control. Shareholders' equity recognized due to changes in other shareholders' equity
related to the original subsidiary except net profit and loss other comprehensive income and profit distribution
shall be converted into current profits and losses when it loses control.B. Dispose of equity step by step until loss of control
If the enterprise disposes of its equity investment in a subsidiary step by step through multiple transactions
until it loses control if the transaction of disposing of its equity investment in a subsidiary until the loss of
control is a package transaction it shall treat each transaction as a transaction of disposing of the subsidiary and
loss of control; However the difference between the price of each disposal before the loss of control and the
share of the subsidiary's net assets corresponding to the disposal investment shall be recognized as other
comprehensive income in the consolidated financial statements and transferred to the current profits and losses
when the control is lost.The terms conditions and economic impact of various transactions dealing with equity investment in
subsidiaries meet one or more of the following conditions which usually indicates that multiple transactions
shall be subject to accounting treatment as a package transaction:
(A) These transactions are concluded at the same time or under the consideration of mutual impact;
(B) These transactions as a whole can achieve a complete commercial result;
(C) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(D) A transaction is uneconomical when considered alone but it is economical when considered together
with other transactions.
(3) Purchase of minority shares of the subsidiaries
The Company shall adjust the capital premium or share capital premium in the capital reserve in the
consolidated balance sheet for the difference between the newly acquired long-term equity investment due to
the purchase of minority shares and the share of net identifiable assets that should be continuously calculated by
the subsidiaries from the date of purchase (or date of merger) according to the new shareholding ratio. If the
capital premium or share capital premium in the capital reserve is insufficient to offset the retained income
shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without loss of control
For the difference between the disposal price obtained from the partial disposal of the long-term equity
investment in the subsidiary and the share of the net assets of the subsidiary that is continuously calculated from
the date of purchase or the date of merger corresponding to the disposal of the long-term equity investment
adjust the capital premium or share capital premium in the capital reserve in the consolidated balance sheet. If
30the capital premium or share capital premium in the capital reserve is insufficient to offset adjust the retained
income.
8. Classification of joint venture arrangement and accounting treatment for joint control
A joint venture arrangement refers to an arrangement controlled jointly by two or more participants. Joint
venture arrangements are divided into joint operation and joint ventures.
1. Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets
related to the arrangement and undertakes the liabilities related to the arrangement. The Company recognizes
the following items related to the share of interests in joint operation:
(1) Recognize the assets held separately and recognize the assets held jointly according to their shares;
(2) Recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken
according to their shares;
(3) Recognize the income generated from the sale of its share of joint operation output;
(4) Recognize the income generated by the sale of output in the joint operation according to its share;
(5) Recognize the expenses incurred separately and recognize the expenses incurred in joint operation
according to their shares.
2. Joint venture refers to a joint venture arrangement in which the Company has rights only to the net
assets of the arrangement. The Company shall carry out accounting treatment for the investment of the joint
venture in accordance with the provisions on accounting by equity method for long-term equity investment.
9. Recognition of cash and cash equivalents
When preparing the cash flow statement the Company will recognize the cash on hand and the deposits
that can be used for payment at any time as cash. An investment with short term (usually due within three
months from the date of purchase) strong liquidity easy conversion into known cash and little risk of value
change will be determined as a cash equivalent. Restricted bank deposits will not be regarded as cash and cash
equivalents in the cash flow statement.
10. Foreign currency transaction and financial statement conversion
1. Foreign currency business
When foreign currency business occurs the amount of foreign currency is converted into RMB for
recording according to the spot exchange rate on the date of transaction and foreign currency monetary items
and foreign currency non-monetary items are treated in the following ways at the end of the period:
(1) Foreign currency monetary items are converted at the spot exchange rate on the balance sheet date.
Exchange differences arising from the difference between the spot exchange rate on the balance sheet date and
the initial recognition or the spot exchange rate on the previous balance sheet date are included in the current
profits and losses.
(2) Foreign currency non-monetary items measured at historical cost are still converted at the spot
exchange rate on the date of transaction and the amount of their recording currency will not be changed.
(3) Foreign currency non-monetary items measured at fair value shall be converted at the spot exchange
rate on the fair value determination date and the resulting exchange gains and losses shall be included in the
current profits and losses or other comprehensive income.
(4) Foreign currency exchange gains and losses except the exchange gains and losses arising from
foreign currency special borrowing related to the purchase construction or production of assets eligible for
31capitalization are included in the cost of assets eligible for capitalization before the assets reach the scheduled
serviceable or saleable state and the rest are included in the current profits and losses.
2. Conversion in foreign currency financial statements
(1) Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet
date; Except for the "undistributed profit" other items of owners' equity are converted at the spot exchange rate
at the time of occurrence.
(2) The income and expenses in the income statement are converted at the approximate exchange rate of
the spot exchange rate on the date of transaction.
(3) The conversion difference of foreign currency financial statements generated according to the above
conversion is included in other comprehensive income. When disposing of overseas operations the conversion
difference of foreign currency financial statements related to the overseas operations shall be transferred from
the owners' equity to the current profits and losses.
(4) The cash flow statement is converted by the approximate exchange rate of the spot exchange rate on
the date of cash flow occurrence. As a reconciliation item the influence of exchange rate changes on cash is
listed separately in the cash flow statement.
11. Financial instruments
When the Company becomes a party to the financial instrument contract it recognizes a financial asset or
financial liability related to it.
1. Classification recognition basis and measurement method of financial assets
According to the business model of financial assets under management and the contractual cash flow
characteristics of financial assets the Company divides financial assets into three categories: financial assets
measured by amortized cost financial assets measured by fair value with its changes included in other
comprehensive income and financial assets measured by fair value with its changes included in current profits
and losses.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value with its changes included in the current profits and losses relevant transaction costs are directly included
in the current profits and losses; For financial assets of other types relevant transaction costs are included in the
initial recognition amount. If the accounts receivable initially recognized by the Company do not contain
significant financing components as defined in the Accounting Standards for Business Enterprises No.14-
Income or the financing components in contracts with a duration of no more than one year are not considered
according to the provisions of Accounting Standards for Business Enterprises No.14-Income the initial
measurement shall be made according to the transaction price of the consideration expected to be charged.
(1) Financial assets measured in amortized cost
The Company's business model of managing such financial assets is to collect contract cash flow and the
cash flow generated on a specific date is only for the payment of principal and interest based on the unpaid
principal amount. For such financial assets the Company adopts the effective interest rate method for
subsequent measurement according to amortized cost and the gains or losses arising from amortization or
impairment are included in the current profits and losses.
(2) Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model of managing such financial assets is to collect contract cash flow and sell
it and the cash flow generated on a specific date is only for the payment of principal and interest based on the
unpaid principal amount. Such financial assets are measured at fair value with changes included in other
32comprehensive income but impairment losses or gains exchange gains and losses and interest income
calculated according to the effective interest rate method are included in current profits and losses.For the investment in non-transactional equity instruments the Company can irrevocably designate it as a
financial asset measured at fair value with changes included in other comprehensive income at the initial
recognition. The designation is made on the basis of a single investment and the relevant investment conforms
to the definition of equity instrument from the issuer's point of view. The Company includes the relevant
dividend income of such financial assets in the current profits and losses and the changes in fair value in other
comprehensive income. When the financial asset is derecognized the accumulated gains or losses previously
included in other comprehensive income will be transferred from other comprehensive income to retained
income and will not be included in the current profits and losses.
(3) Financial assets measured at fair value with changes included in the current profits and losses
Except for the above financial assets measured in amortized cost and the financial assets measured at fair
value with changes included in other comprehensive income the Company classifies all other financial assets as
financial assets measured at fair value with changes included in current profits and losses. In addition at the
time of initial recognition in order to eliminate or significantly reduce the accounting mismatch the Company
designated some financial assets as the financial assets measured at fair value with changes included in the
current profits and losses. Such financial assets are subsequently measured at fair value with changes in fair
value included in current profits and losses.
2. Classification recognition basis and measurement method of financial liabilities
The Company's financial liabilities are classified into financial liabilities measured at fair value with
changes included in current profits and losses and other financial liabilities at initial recognition. For financial
liabilities measured at fair value with changes included in the current profits and losses the related transaction
costs are directly included in the current profits and losses and the related transaction costs of other financial
liabilities are included in their initial recognition amount.
(1) Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value with changes included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated as measured at fair value with changes included in current profits and losses.Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured at fair value and changes in fair value are included in current profits and losses except those related
to hedging accounting.For financial liabilities that are designated as being measured at fair value with changes included in
current profits and losses at the time of initial recognition the changes in fair value caused by changes in the
Company's own credit risk are included in other comprehensive income and when the liability is derecognized
the accumulated changes in its fair value caused by changes in its own credit risk included in other
comprehensive income are transferred to retained income. Other changes in fair value are included in current
profits and losses. If the accounting mismatch in profit and loss will be caused or enlarged by handling the
impact of the changes in credit risk of these financial liabilities in the above way the Company will include all
the gains or losses of the financial liabilities (including the amount affected by the changes in the enterprise's
credit risk) in the current profits and losses.
(2) Other financial liabilities
Other financial liabilities except those caused by the transfer of financial assets and financial guarantee
contracts that do not meet the conditions for derecognition or continue to be involved in the transferred financial
33assets are classified as financial liabilities measured in amortized cost and subsequently measured in amortized
cost. The gains or losses arising from derecognition or amortization are included in the current profits and losses.
3. Methods for determining the fair value of financial assets and financial liabilities
The fair value of financial instruments with an active market shall be determined by the quotation in the
active market. The fair value of financial instruments without active market shall be determined by valuation
technology. At the time of valuation the Company adopts the valuation technology that is applicable in the
current situation and supported by sufficient available data and other information selects the input values that
are consistent with the characteristics of assets or liabilities considered by market participants in the transaction
of relevant assets or liabilities and gives priority to the relevant observable input values. Unobservable input
values can only be used if the relevant observable input values are unavailable or impracticable.
4. Recognition basis and measurement method for transfer of financial assets
Recognition for transfer of financial assets
Circumstances Recognition results
Almost all risks and rewards in the ownership of financial assets are
transferred The financial assets are derecognized (new
The control of financial assets is given assets/liabilities are recognized)
Almost all risks and
up
rewards in the ownership of
financial assets are neither The relevant assets and liabilities is recognized The control of financial assets is not
transferred nor retained according to the extent of continuing involvement in the given up
transferred financial assets
Almost all risks and
Continue to recognize the financial assets and recognize the received consideration as financial
rewards in the ownership of
liabilities
financial assets are retained
The Company divides the transfer of financial assets into the overall transfer and partial transfer of
financial assets.
(1) If the overall transfer of financial assets meets the conditions for derecognition the difference between
the following two amounts shall be included in the current profits and losses: the book value of the transferred
financial assets on the derecognition date; The sum of the consideration received for the transfer of financial
assets and the cumulative amount of changes in fair value that were originally directly included in other
comprehensive income (the financial assets involved in the transfer are those classified as financial assets
measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
(2) If a part of the financial assets is transferred and the transferred part as a whole meets the conditions
for derecognition the book value of the whole financial assets before the transfer shall be allocated between the
derecognition part and the continued recognition part (in this case the retained service assets shall be regarded
as part of continued recognition of financial asset) according to their respective relative fair values on the date
of transfer and the difference between the following two amounts shall be included in the current profits and
losses: the book value of the derecognition part on the derecognition date; The sum of the consideration
received for the derecognition part (including all new assets acquired minus all new liabilities assumed) and the
corresponding derecognition amount in the accumulated amount of changes in fair value originally included in
other comprehensive income (the financial assets involved in partial transfer are those classified as financial
assets measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).If the transfer of financial assets does not meet the conditions for derecognition the whole transferred
financial assets shall be continuously recognized and the received consideration shall be recognized as a
financial liability.
5. Conditions for derecognition of financial liabilities
34If the current obligations of financial liabilities(or part of them) have been discharged the financial
liabilities (or part of them) shall be derecognized. If the following conditions exist:
(1) If the Company transfers the assets used to pay financial liabilities to an institution or establishes a
trust and the obligation of debt payment still exists it shall not derecognize the financial liabilities.
(2) The Company (the borrower) and the lender sign an agreement to replace the original financial
liabilities (or part of them) by taking on new financial liabilities and the contractual terms are essentially
different. The Company shall derecognize the original financial liabilities (or part of them) and recognize a new
financial liability at the same time.If the financial liabilities (or part of them) are derecognized the Company will record the difference
between the book value and the consideration paid (including the transferred non-cash assets or liabilities) into
the current profits and losses.
6. Impairment of financial assets
(1) Recognition method of impairment provision
The Company conducts impairment accounting treatment on financial assets (including receivables)
measured in amortized cost debt instrument investment and lease receivables measured at fair value with
changes included in other comprehensive income on the basis of expected credit losses and recognizes the loss
provisions. In addition for contract assets loan commitments and financial guarantee contracts impairment
provisions are also accrued and impairment losses are recognized in accordance with the accounting policies
described in this section.Expected credit loss refers to the weighted mean of credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contracted cash flows that the Company
discounted at the original actual interest rate and all cash flows that it is expected to receive that is the present
value of all cash shortages.Except for the purchased or originated financial assets with credit impairment the Company evaluates
whether the credit risk of relevant financial assets has increased significantly since the initial recognition on
each balance sheet date. If the credit risk has not increased significantly since the initial recognition. it is in the
first stage and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the next 12 months; If the credit risk has increased significantly since the
initial recognition but with no credit impairment it is in the second stage and the Company will measure the
loss provision according to the amount equivalent to the expected credit loss of the financial asset during the
whole duration; If the financial asset has suffered credit impairment since its initial recognition it is in the third
stage and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the whole duration. When evaluating the expected credit loss the Company
considers the reasonable and well-founded information including forward-looking information about past
events current situation and future economic situation prediction that can be obtained on the balance sheet date
without unnecessary extra cost or effort.The expected credit loss in the next 12 months refers to the expected credit loss caused by financial asset
default events that may occur within 12 months after the balance sheet date (if the expected duration of financial
assets is less than 12 months within the expected duration) which is a part of the expected credit loss in the
whole duration.For financial instruments with low credit risk on the balance sheet date the Company assumes that the
credit risk has not increased significantly since the initial recognition and chooses to measure the loss provision
according to the expected credit loss in the next 12 months.
35For the financial assets in the first and second stages and with low credit risk the Company calculates the
interest income according to the book balance without deducting the impairment provision and the actual
interest rate. For the financial assets in the third stage the interest income shall be calculated according to the
book balance minus the amortized cost and the actual interest rate after the impairment provision has been
accrued.
(2) Financial asset with impairment
When the Company anticipates that one or more events that have an adverse effect on the future cash flow
of a financial asset occur the financial asset becomes a financial asset with credit impairment. Evidence of
credit impairment of financial assets includes the following observable information:
A. The issuer or the debtor has major financial difficulties;
B. The debtor has breached the contract such as default or overdue payment of interest or principal;
C. The creditor makes concessions to the debtor that it will not make under any other circumstances due to
economic or contractual considerations related to its financial difficulties;
D. The debtor is likely to go bankrupt or carry out other financial restructuring;
E. The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the
financial asset;
F. A financial asset is purchased or originated at a large discount which reflects the fact that credit loss
has occurred.Credit impairment of financial assets may be caused by the joint action of multiple events not necessarily
by an event that can be identified separately.
(3) Financial assets with credit impairment purchased or originated
For the purchased or originated financial assets with credit impairment the Company only recognizes the
cumulative change of expected credit loss in the whole duration after initial recognition as loss provision on the
balance sheet date. On each balance sheet date the change amount of expected credit loss during the whole
duration is included in the current profits and losses as impairment loss or gain. Even if the expected credit loss
determined on the balance sheet date is less than the amount of the expected credit loss reflected by the
estimated cash flow at the time of initial recognition the favorable change of expected credit loss will be
recognized as impairment gain.
(4) Criteria for judging significant increase in credit risk
If the default probability of a financial asset in the estimated duration determined on the balance sheet date
is significantly higher than that in the estimated duration determined at the initial recognition it indicates that
the credit risk of the financial asset is significantly increased. Except in special circumstances the Company
uses the change of default risk in the next 12 months as a reasonable estimate of the change in default risk in the
whole duration to determine whether the credit risk has increased significantly since the initial recognition.
(5) Method of evaluating the expected credit loss of financial assets
The Company evaluates the expected credit loss of financial assets based on individual and combined
items. It individually evaluates the credit risk of financial assets with significantly different credit risks such as:
receivables from related parties; accounts receivable from government agencies and units; and receivables with
obvious signs that the debtor is likely to be unable to fulfill the repayment obligations.Except for financial assets whose credit risks are individually evaluated the Company divides financial
assets into different groups based on common risk characteristics and evaluates the credit risks on the basis of
combination.
(6) Accounting treatment method for impairment of financial assets
36The Company calculates the expected credit losses of various financial assets on the balance sheet date
and the resulting increase or reversal amount of loss provision is included in the current profits and losses as
impairment losses or gains.If the Company actually suffers from credit losses and the relevant financial assets are determined to be
irrecoverable and approved for write-off the book balance of the financial assets will be directly written down.If the financial assets written down are recovered later they will be included in the current profits and losses of
recovery as the reversal of impairment losses.
7. Financial guarantee contract
A financial guarantee contract refers to a contract in which the issuer pays a certain amount to the contract
holder who has suffered losses when the debtor fails to repay the debt according to the original or revised terms
of the debt instrument at maturity. The financial guarantee contract shall be measured at fair value upon initial
recognition. For the financial guarantee contract for a financial liability not designated as being measured at fair
value with changes included into the current profits and losses after the initial recognition subsequent
measurement shall be made according to the higher of the expected credit loss provision amount determined on
the balance sheet date and the balance of the initial recognition amount after deducting the accumulated
amortization amount determined according to the income recognition principle.
8. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without mutual offset.However if the following conditions are met at the same time the net amount after mutual offset shall be listed
in the balance sheet:
(1) The Company has the legal right to offset the recognized financial assets and financial liabilities and
such legal right is now enforceable;
(2) The Company plans to settle accounts by netting or realize the financial assets and pay off the
financial liabilities at the same time.
9. Equity instruments
Equity instruments refer to contracts that can prove that the Company has residual interests in assets after
deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity
instruments by the Company are treated as changes in equity. The Company does not recognize changes in the
fair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.Various distributions (excluding stock dividends) made by the Company to holders of equity instruments
are used as profit distribution to reduce the owners' equity. The stock dividends distributed do not affect the
total owners' equity.
12. Note receivable
The Company measures the loss provision for notes receivable according to the expected credit loss
amount of the whole duration.Except for the notes receivable whose credit risk is evaluated individually the Company divides the notes
receivable into different portfolios based on the credit risk of their acceptors as a common risk characteristic
and calculates the expected credit loss on the basis of the portfolios. The basis for determining the portfolios is
as follows:
Portfolio name Basis for determining the portfolio
Management evaluation has low credit risk and the expected
Bank acceptance bill
credit loss is generally not recognized
37Commercial acceptance bill Same as "Accounts Receivable" portfolio
The Company individually tests the impairment of the notes receivable with objective evidence and other
notes that are suitable for individual evaluation recognizes the expected credit loss and calculates the
individual impairment provision.
13. Account receivableThe CBC adopts the simplified model of expected credit loss for accounts receivables specified in “AccountingStandards for Business Enterprises No.14 - Revenue” and without containing significant financing components
(including the case that the financing components in contracts that do not exceed one year are not considered
according to the standards) that is always measures their loss provisions according to the amount of expected
credit loss during the entire duration and the resulting increased or reversed amount of the loss provision is
included in the current profit and loss as an impairment loss or gain.Based on common risk characteristics the Company divides accounts receivable into different groups
according to common credit risk characteristics such as customer categories:
Portfolio name Basis for determining the portfolio
Commercial acceptance bills receivable accounts receivable
and other receivables with significant single amount
Individual identification portfolio (receivables with an ending balance of more than RMB 5
million (including RMB 5 million)) or accounts receivable with
insignificant individual amount but high risk
Aging portfolio Taking the aging of receivables as the credit risk characteristic
Related-party portfolio receivable Receivables from related parties
(1) Individual identification portfolio: For receivables with an ending balance of more than RMB 5
million (including RMB 5 million) or accounts receivable with insignificant individual amount but high risk
impairment test shall be conducted separately for each customer. Impairment test shall be conducted separately
for accounts receivable with objective evidence indicating impairment and other accounts receivable applicable
to individual evaluation (such as accounts receivable in dispute with the other party or involving litigation and
arbitration; accounts receivable with obvious signs that the debtor is likely to be unable to fulfill the repayment
obligations etc.) to recognize expected credit loss and calculate individual impairment provision.
(2) Aging portfolio: For accounts receivable that have not been impaired after individual testing or whose
individual amount is not significant but with low risk the Company evaluates the expected credit loss of various
accounts receivable based on the actual loss rate of the same or similar accounts receivable portfolio with
similar credit risk characteristics in previous years.
(3) Associated portfolio: Unless there is conclusive evidence indicating an impairment the accounts
receivable formed between related parties shall not be accrued for bad debt provision.
3814. Receivable financing
Receivable financing reflects notes receivable and accounts receivable that are measured at fair value on the
balance sheet date with changes included in other comprehensive income. For the accounting treatment method
please refer to the related treatment of the financial assets measured at fair value with changes included in other
comprehensive income classified in Item (XI) Financial Instrument of this accounting policy.
15. Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
For other receivables the expected credit loss is determined according to historical data and forward-
looking information. Based on whether the credit risk of other receivables has increased significantly since the
initial recognition the Company adopts the amount equivalent to the expected credit loss in the next 12 months
or the whole duration to measure the impairment loss. For specific accounting treatment methods please refer
to Item (XIII) Accounts Receivable of this accounting policy.
16. Contractual assets
Contract assets refer to the right that the Company has transferred the goods to customers and has the right
to receive consideration and such right depends on other factors besides the passage of time.
17. InventoryThe Company shall comply with the disclosure requirement of jewelry-related industries in the “ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The CBC classifies the inventory into raw materials goods in process goods on hand wrap page low value
consumables materials for consigned processing and goods sold etc.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition which includes procurement costs processing costs
and other costs. Cost of the inventory issued is carried forward on the basis of a combination of the weighted
average method and specific identification when inventories are issued.
(3)Inventory system
Perpetual inventory system is adopted.
(4) Amortization method of low-value consumables and packaging materials
"One-time amortization method" is adopted for accounting.
(5) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value
of stock in inventory (including finished products goods in stock and materials for sale) that can be sold directly
is determined using the estimated saleable price of such inventory deducted by the cost of sales and relevant
taxation over the course of ordinary production and operation. The net realizable value of material in inventory
that requires processing is determined using the estimated saleable price of the finished product deducted by the
cost to completion estimated cost of sales and relevant taxation over the course of ordinary production and
39operation. The net realizable value of inventory held for performance of sales contract or labor service contract is
determined based on the contractual price; in case the amount of inventory held exceeds the contractual amount
the net realizable value of the excess portion of inventory is calculated using the normal saleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however
for inventories with large quantity and low unit price the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared the amount written-off is reversed
and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.During the reporting period the specific methods and implementation of the Company's inventory
impairment measurement are as follows:
(1) Inventory impairment method
The issuer's inventory mainly includes raw materials inventory goods and materials commissioned for
processing. The ending inventory of the Company is measured according to the lower of cost and net realizable
value. When the net realizable value is lower than the cost the inventory depreciation provision is accrued.* Specific methods for measuring the impairment of raw materials
Raw materials mainly include gold and diamond raw materials. The closing net realizable value of gold
raw materials is determined according to the closing price of spot gold trading announced by Shanghai Gold
Exchange at the end of the period. For the part with the book cost higher than the closing net realizable value
inventory depreciation provision is accrued; Diamond raw materials are used for processing finished diamond
inlaid products but the finished diamond inlaid products are with great difference. At the end of the year the
Company will comprehensively judge whether there are signs of impairment based on the price fluctuation of
diamonds in that year processing rates and pricing policies and if there are signs of impairment it will measure
the impairment one by one.* Specific methods for measuring the impairment of inventory goods
Inventory goods mainly include finished gold products finished K-gold products and finished inlaid
products. The depreciation of finished gold products and finished K-gold products shall be measured one by one
and the closing net realizable value shall be determined by referring to the sales outbound price at the end of the
period after deducting the relevant sales expenses and taxes. For finished products whose closing book cost is
higher than the net realizable value the inventory depreciation provision shall be accrued. The finished inlaid
products are quite different. At the end of the period the Company will comprehensively judge whether there
are signs of impairment according to the price fluctuation of diamonds in that year and the pricing policy. If
there are signs of impairment the impairment will be measured one by one.* Specific methods for measuring the impairment of materials commissioned for processing
Materials commissioned for processing mainly include gold and diamond raw materials which are similar
in nature to raw materials so the measurement method is consistent with that of raw materials.
18. Assets held for sale
1. Basis for classification as non-current assets held for sale or disposal group
If the book value of an non-current asset is recovered mainly through sales (including the exchange of
non-monetary assets with commercial substance) rather than continuous use or disposal group the Company
will classify it as held for sale. The specific standard is to meet the following conditions at the same time:
(1) According to the practice of sales of such assets or disposal groups in similar transactions they can be
sold immediately under the current situation;
40(2) The Company has made a resolution on a sale plan and obtained a firm purchase commitment. It is
expected that the sale will be completed within one year (if the relevant regulations require the approval of the
relevant authority or regulatory department of the Company before the sale such approval has been obtained).If the control right of the subsidiary is lost due to the sale of the investment in the subsidiary regardless of
whether part of the equity investment is retained after the sale and the conditions for classification of the held-
for-sale category are met the investment in the subsidiary as a whole will be classified as held-for-sale category
in the individual financial statements of the parent company and all assets and liabilities of the subsidiary will
be classified as held-for-sale category in the consolidated financial statements.
2. Accounting treatment of non-current assets or disposal groups held for sale
When the Company initially measures or re-measures the non-current assets or disposal groups held for
sale on the balance sheet date if the book value is higher than the net amount of fair value minus the sale
expenses the book value will be written down to the net amount of fair value minus the sale expenses and the
written-down amount will be recognized as asset impairment loss and included in the current profits and losses
and impairment provision of assets held for sale will be accrued at the same time. If the net amount of the fair
value of non-current assets held for sale on the subsequent balance sheet date is increased after deducting the
sale expenses the previously written-down amount will be restored and reversed within the amount of asset
impairment loss recognized after being classified as held for sale and the reversed amount will be included in
the current profits and losses. Assets impairment losses recognized before being classified as held for sale shall
not be reversed.For the amount of asset impairment loss recognized by the disposal group held for sale the book value of
goodwill in the disposal group shall be deducted first and then the book value of non-current assets in the
disposal group shall be deducted proportionally according to the proportion of the book value of non-current
assets in the disposal group. For the subsequent reversal amount of asset impairment losses recognized by the
disposal group held for sale the book value will be increased in proportion according to the proportion of the
book value of non-current assets except goodwill in the disposal group.Non-current assets held for sale or non-current assets in disposal group are not depreciated or amortized
and interest and other expenses of liabilities in disposal group held for sale continue to be recognized.When the Company derecognizes the non-current assets held for sale or disposal groups the unrecognized
gains or losses will be included in the current profits and losses.When non-current assets or disposal groups are no longer classified as held for sale because they no
longer meet the classification conditions of held for sale or non-current assets are removed from the disposal
groups held for sale the measurement shall be based on the lower of the following two amounts:
(1) For the book value before being classified as held for sale the adjusted amount based on depreciation
amortization or impairment that should have been recognized if it is not classified as held for sale;
(2) Recoverable amount.
3. Determination standard and presentation method of discontinued operation
Discontinued operations refers to a component that meets any of the following conditions and can be
distinguished separately and has been disposed of by the Company or classified as a component held for sale:
(1) This component represents an independent main business or a single main business area;
(2) This component is part of an associated plan to dispose of an independent main business or a separate
main business area;
(3) This component is a subsidiary acquired exclusively for resale.
For the discontinued operation listed in the current period the Company separately lists the profit and loss
of continuing operation and the profit and loss of discontinued operation in the current income statement and
41re-lists the information originally listed as the profit and loss of continuing operation as the profit and loss of
discontinued operation in comparable accounting period in the income statement of the comparative period.
19. Debt investment
For debt investment the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
20. Other debt investment
For Other debt investment the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
21. Long-term account receivable
The Company's long-term receivables include receivable financial lease and other long-term receivables.For the receivable financial lease formed by the transactions regulated in Accounting Standards for
Business Enterprises No.21-Lease the loss provision shall be measured according to the amount equivalent to
the expected credit loss during the whole duration.For other long-term receivables the Company determines the expected credit loss on each balance sheet
date according to the types of counterparties and risk exposures and in consideration of historical default and
reasonable forward-looking information or various external actual and expected economic information.Based on whether the credit risk has increased significantly since the initial recognition the Company
adopts the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measure
the impairment loss of long-term receivables. Except for the long-term receivables whose credit risk is
evaluated individually they are divided into different portfolios based on their credit risk characteristics:
Portfolio name Basis for determining the portfolio
Normal long-term receivables This portfolio is a long-term receivable with no overdue risk
Overdue long-term receivables This portfolio is a long-term receivable with high overdue risk
……
22. Long-term equity investment
1. Basis for determining joint control and significant influence on the investee
Joint control refers to the common control of an arrangement according to the relevant agreement and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. When judging whether there is joint control firstly it is judged whether all
42participants or a group of participants collectively control the arrangement. If all participants or a group of
participants must act in concert to decide the related activities of an arrangement it is considered that all
participants or a group of participants collectively control the arrangement. Secondly it is judged whether the
decision of the related activities of the arrangement must be unanimously agreed by the participants who
collectively control the arrangement and joint control can only be formed if and only if the decision of the
related activities requires the unanimous consent of the participants who collectively control the arrangement. If
there are two or more participants who can collectively control an arrangement it does not constitute joint
control. When judging whether there is joint control the protective rights enjoyed are not considered.Significant influence refers to that the investor has the right to participate in the decision-making of the
financial and operating policies of the investee but it cannot control or jointly control the formulation of these
policies with other parties. When determining whether a significant influence can be exerted on the investee
consider the influence of the investor's direct or indirect holding of the voting shares of the investee and the
potential voting rights held by the investor and other parties in the current period after it is assumed to be
converted into the equity of the investee including the influence of the current convertible warrants stock
options and convertible corporate bonds issued by the investee. When foreign investment meets the following
conditions it is generally determined that it has a significant impact on the investing unit: * It is represented in
the Board of Directors or similar authority of the investee; * It participates in the formulation of the financial
and business policies of the investee; * Important transactions with the investee occur; * Management
personnel are sent to the investee; * Key technical data is provided to the investee. When directly or indirectly
owning more than 20% but less than 50% of the voting shares of the investee it is generally considered to have
a significant impact on the investee.
2. Determination of initial investment cost
(1) Long-term equity investment formed by business merger
A. In the case of business merger under the same control if cash payment transfer of non-cash assets or
taking on debts and issuance of equity securities are adopted as the merger consideration the initial investment
cost of long-term equity investment shall be the share of the book value of the owners' equity of the merged
party in the consolidated financial statements of the final controlling party on the date of merger. If the investee
under the same control can be controlled due to additional investment and other reasons the initial investment
cost of long-term equity investment shall be determined according to the share of the net assets of the merged
party in the book value of the consolidated financial statements of the final controlling party on the date of
merger. For the difference between the initial investment cost of the long-term equity investment on the date of
merger and the book value of the long-term equity investment before the merger plus the book value of the
newly paid consideration for the shares on the date of merger adjust the capital premium or share capital
premium. If the capital premium or share capital premium is insufficient to offset the retained income will be
offset.B. For the business merger not under the same control the merger cost shall be determined as the initial
investment cost of long-term equity investment on the date of purchase in accordance with the relevant
provisions of the Accounting Standards for Business Enterprises No.20-Business Merger. If the investees not
under the same control can be controlled due to additional investment and other reasons the sum of the book
value of the original equity investment plus the new investment cost shall be taken as the initial investment cost
calculated by the cost method.
(2) In addition to the long-term equity investment formed by business merger the initial investment cost
of long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
43A. For long-term equity investment obtained by paying cash the initial investment cost shall be the actual
purchase price. The initial investment cost includes expenses taxes and other necessary expenses directly
related to obtaining long-term equity investment.B. For long-term equity investment obtained by issuing equity securities the initial investment cost shall
be the fair value of issuing equity securities.C. For long-term equity investment obtained by exchange of non-monetary assets the initial investment
cost shall be determined in accordance with the Accounting Standards for Business Enterprises No.7-Exchange
of Non-monetary Assets.D. For long-term equity investment obtained by debt restructuring its initial investment cost shall be
determined in accordance with the Accounting Standards for Business Enterprises No.12-Debt Restructuring.
3. Subsequent measurement and profit and loss recognition method
(1) Accounting by cost method: Long-term equity investment that can be controlled by the investee shall
be accounted by cost method. When accounting by cost method the cost of long-term equity investment is
adjusted by adding or recovering investment. For the long-term equity investment accounted by the cost method
except for the declared but undistributed cash dividends or profits included in the price or consideration actually
paid at the time of investment the Company shall recognize the investment income according to the cash
dividends or profits declared by the investee and no longer distinguish whether it belongs to the net profit
realized by the investee before and after the investment.
(2) Accounting by equity method: For the long-term equity investment jointly controlled or significantly
influenced by the investee except for the equity investment in the associated enterprise part of it is indirectly
held by venture capital institutions mutual funds trust companies or similar entities including investment with
insurance funds regardless of whether the above entities have a significant influence on this part of the
investment the Company to measure this part of the indirectly held investment at fair value with its changes
included in profits and losses in accordance with the relevant provisions of Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments and adopts the equity method for
accounting. When accounting by equity method after the Company obtains the long-term equity investment
the investment income and other comprehensive income are recognized respectively according to the share of
the net profit and loss and other comprehensive income realized by the investee and the book value of the long-
term equity investment is adjusted; The Company shall calculate its share according to the profit or cash
dividend declared by the investee and correspondingly reduce the book value of long-term equity investment;
The Company shall adjust the book value of the long-term equity investment and include it in the owners' equity
for other changes in the owners' equity of the investee except the net profit and loss other comprehensive
income and profit distribution. The Company recognizes the net loss of the investee to the extent that the book
value of the long-term equity investment and other long-term rights and interests that substantially constitute the
net investment of the investee are written down to zero unless the Company has the obligation to bear
additional losses. If the investee realizes the net profit in the future the Company will resume the recognition of
the income share after the income share makes up for the unrecognized loss share. When recognizing the share
of the net profit and loss of the investee the Company will adjust the net profit of the investee based on the fair
value of the identifiable assets of the investee at the time of investment and offset the gains and losses of
internal transactions between the Company and associated enterprises and joint ventures and recognize the
investment profit and loss on this basis. The internal transaction losses between the Company and the investee
shall be recognized in full if they belong to asset impairment losses according to the Accounting Standards for
Business Enterprises No.8-Asset Impairment. If the accounting policies and accounting periods adopted by the
investee are inconsistent with those of the Company the financial statements of the investee shall be adjusted
44according to the accounting policies and accounting periods of the Company so as to recognize the investment
profits and losses.Long-term equity investments in associated enterprises and joint ventures held before the first execution
date if there is any debit difference of equity investments related to the investment shall be amortized by the
original remaining term straight-line method and the amortized amount shall be included in the current profits
and losses.
(3) When disposing of long-term equity investment the difference between its book value and the actual
purchase price is included in the current profits and losses. If the long-term equity investment accounted by
equity method is included in the owners' equity due to other changes in the owners' equity of the investee except
the net profit and loss the part originally included in the owners' equity will be transferred to the current profits
and losses in proportion when disposing of the investment except for other comprehensive income arising from
the investee's re-measurement of the changes in defined benefit plan net liabilities or net assets.
23. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation or both. It includes
leased land use rights land use rights held and ready to be transferred after appreciation and leased buildings.When the Company can obtain rental income or value-added income related to investment real estate and the
cost of investment real estate can be measured reliably the Company will initially measure it according to the
actual expenditure of purchase or construction.The Company adopts the cost model to measure the investment real estate on the balance sheet date.Under the cost model the Company measures the investment real estate and makes depreciation or amortization
in accordance with the provisions of Item (23) Fixed Assets and Item (26) Intangible Assets of this accounting
policy. When the investment real estate is disposed of or permanently withdrawn from use and it is not
expected to obtain economic benefits from its disposal the recognition of the investment real estate shall be
terminated. When the Company sells transfers scraps or damages the investment real estate the amount of
disposal income after deducting its book value and relevant taxes shall be included in the current profits and
losses.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets with a service life of more than one fiscal year which are held for
producing goods providing labor services leasing or managing.
(2) Depreciation methods
Yearly depreciation
Category Method Years of depreciation Scrap value rate
rate
Straight-line
Houses and buildings 20 0.1 0.045
depreciation
Straight-line
Machinery equipment 10 0.1 0.09
depreciation
Transportation Straight-line
50.10.18
equipment depreciation
Electronic equipment Straight-line
50.10.18
and others depreciation
45At the end of each year the company rechecks the service life estimated net salvage and depreciation method
of fixed assets.
25. Construction in progress
The construction in progress is measured according to the actual cost which includes all necessary project
expenditures incurred during the construction period borrowing costs that should be capitalized before the
project reaches the scheduled serviceable state and other related expenses.Construction in progress is carried forward to fixed assets when it reaches the scheduled serviceable state.The criteria for scheduled serviceable state shall meet one of the following conditions:
(1) The physical construction (including installation) or production of fixed assets has been completely or
substantially completed;
(2) It has been put into trial production or trial operation and the results show that the assets can normally
produce qualified products or the trial operation results show that it can operate or operate properly;
(3) The amount of expenditure that continues to occur on fixed assets purchased constructed or produced
is very small or almost none;
(4) The fixed assets purchased constructed or produced have reached the design or contract requirements
or are basically in line with the design or contract requirements.
26. Borrowing expenses
1. Recognition principle of capitalization of borrowing costs
Borrowing costs include interest incurred by borrowing amortization of discount or premium and
auxiliary expenses as well as exchange difference incurred by borrowing in foreign currency. If the borrowing
costs incurred by the Company can be directly attributed to the purchase construction or production of assets
that meet the capitalization conditions they shall be capitalized and included in the cost of relevant assets;
Other borrowing costs shall be recognized as expenses when incurred according to the amount incurred and
included in the current profits and losses.Assets eligible for capitalization include fixed assets investment real estate inventory and other assets
that need to go through a long period of purchase construction or production activities to reach the
predetermined serviceable or saleable state.Borrowing costs shall be capitalized when the following conditions are met at the same time:
(1) Asset expenditure has occurred including the expenditure occurred in the form of paying cash
transferring non-cash assets or undertaking interest-bearing debts for purchasing constructing or producing
assets that meet capitalization conditions;
(2) Borrowing costs have been incurred;
(3) The purchase construction or production activities necessary to make the assets reach the expected
serviceable or saleable state have started.
2. Period of capitalization of borrowing costs
Borrowing expenses incurred for purchasing constructing or producing assets that meet the capitalization
conditions if they meet the above capitalization conditions and occur before the assets reach the predetermined
serviceable or saleable state shall be included in the cost of the assets; If the purchase construction or
production activities of the assets are abnormally interrupted for more than 3 months the capitalization of
borrowing costs shall be suspended and recognized as current expenses until the purchase construction or
production activities of the assets resume; When the purchased constructed or produced assets reach the
46predetermined serviceable or saleable state the capitalization of their borrowing costs will be stopped.
Borrowing costs incurred after reaching the intended serviceable or saleable state are directly included in
financial expenses in the current period.
3. Calculation method of capitalized amount of borrowing costs
During the capitalization period the capitalization amount of interest (including amortization of discount
or premium) in each accounting period shall be determined in accordance with the following provisions:
(1) Where a special borrowing is borrowed for the purpose of purchasing constructing or producing assets
that meet the capitalization conditions it shall be determined by the actual interest expenses incurred in the
current period of the special borrowing minus the interest income obtained by depositing unused borrowing
funds in the bank or the investment income obtained by temporary investment.
(2) If the general borrowing is occupied for the purpose of purchasing constructing or producing assets
that meet the capitalization conditions the interest amount that should be capitalized on the general loan shall
be calculated and determined according to the weighted mean of the accumulated asset expenditure exceeding
the special borrowing portion multiplied by the capitalization rate of the occupied general borrowing.
27. Biological assets
Nil
28. Oil and gas asset
Nil
29. Intangible assets
(1) Service life and its determination basis estimation amortization method or review procedure
1. Service life and its determination basis estimation amortization method or review procedure
Intangible assets are measured at actual cost. The cost of outsourced intangible assets includes the
purchase price relevant taxes and other expenses directly attributable to making the assets reach the intended
use. If intangible assets are purchased by installment and the purchase price of intangible assets exceeds the
normal credit conditions and actually with financing nature the cost of intangible assets is the present value of
the purchase price. The cost of intangible assets invested by investors shall be determined according to the value
agreed in the investment contract or agreement. If the value agreed in the investment contract or agreement is
unfair it shall be recorded according to the fair value of intangible assets. For intangible assets obtained by
exchange of non-monetary assets the initial investment cost shall be determined in accordance with the
Accounting Standards for Business Enterprises No.7-Exchange of Non-monetary Assets. For intangible assets
obtained by debt restructuring its initial investment cost shall be determined in accordance with the Accounting
Standards for Business Enterprises No.12-Debt Restructuring. For intangible assets acquired by merger of
enterprises under the same control their entry value shall be determined according to the book value of the
merged party; For intangible assets acquired by merger of enterprises not under the same control their entry
value shall be determined at the fair value.The Company analyzes and judges the service life of intangible assets when acquiring them and divides
them into intangible assets with limited service life and intangible assets with uncertain service life. Intangible
assets with limited service life shall be amortized within the expected service life by adopting the amortization
47method that can reflect the expected realization mode of economic benefits related to such assets from the time
when the intangible assets are available for use; If the expected realization mode cannot be reliably determined
straight-line amortization method shall be adopted.Amortization method service life determination basis and residual rate of various intangible assets with
limited service life:
Category Amortization method Service life (year) Determination basis Residual rate (%)
Statutory
Land use right Straight-line method 40-50 years term/registration term of 0.00
land use certificate
Trademark right Straight-line method 10 years Statutory term 0.00
Benefit period/contract
Software Straight-line method 2-10 years 0.00
period
Benefit period/contract
Patent Straight-line method 5-10 years 0.00
period
Benefit period/contract
Non-patent technology Straight-line method 5-10 years 0.00
period
Industrial property rights
Benefit period/contract
and proprietary Straight-line method 10 years 0.00
period
technology
Benefit period/contract
Others Straight-line method 5-10 years 0.00
period
At the end of each year the Company reviews the service life and amortization method of intangible
assets with limited service life. If the service life and amortization method of intangible assets are different from
those previously estimated the amortization period and amortization method shall be changed.The Company regards intangible assets with unpredictable future economic benefits as intangible assets
with uncertain service life and does not amortize intangible assets with uncertain service life. The Company
reviews the service life of intangible assets with uncertain service life in each accounting period. If there is
evidence that the service life of intangible assets is limited its service life shall be estimate and treatment shall
be carried out according to the above provisions.Please refer to Item (27) Impairment of Long-term Assets in this accounting policy for details on the
impairment test method and accrual method for impairment provision of intangible assets.
(2) Collection scope of R&D expenditure and related accounting treatment methods
R&D expenditure is directly related to R&D activities of the enterprise including R&D employee
compensation direct input expenses depreciation expenses and long-term deferred expenses design expenses
equipment debugging expenses intangible assets amortization expenses commissioned external R&D expenses
and other expenses. The collection and calculation of R&D expenditure is based on the fact that relevant
resources are actually invested in R&D activities. R&D expenditure includes expensed R&D expenditure and
capitalized development expenditure.The division standard of research stage expenditure and development stage expenditure of R&D projects:
Research stage expenditure refers to the expenditure incurred by original planned investigation for acquiring
and understanding new scientific or technical knowledge; Development stage expenditure refers to the
expenditure incurred by applying research results or other knowledge to a plan or design to produce new or
substantially improved materials devices and products before commercial production or use.Expenditures of intangible assets developed by the Company itself during the research stage of R&D
projects are included in the current profits and losses when incurred. Expenditure in the development stage of
48the development project can only be recognized as intangible assets if the following conditions are met at the
same time:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
(3) For the ways in which intangible assets generate economic benefits including the ability to prove that
the products produced by using the intangible assets exist in the market or the intangible assets themselves exist
in the market if the intangible assets will be used internally their usefulness shall be proved;
(4) It has sufficient technical financial and other resources to support the development of the intangible
assets and has the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
The expenditure in the development stage that has been expensed in the previous period is no longer
adjusted.
30. Impairment of long-term assets
Long-term assets such as long-term equity investment investment real estate measured by cost model
fixed assets construction in progress intangible assets and right-to-use assets which show signs of impairment
on the balance sheet date shall be tested for impairment. If the impairment test results show that the recoverable
amount of the asset is lower than its book value the impairment provision shall be accrued according to the
difference and included in the impairment loss. The recoverable amount is the higher of the net amount of the
asset fair value after deducting the disposal expenses and the present value of the expected future cash flow of
the asset. The asset impairment provision is calculated and recognized on the basis of individual assets. If it is
difficult to estimate the recoverable amount of individual assets the recoverable amount of the asset group shall
be determined by the asset group to which the asset belongs. Asset group is the smallest asset portfolio that can
generate cash inflow independently.Goodwill shall be tested for impairment at least at the end of each year. The Company conducts goodwill
impairment test and the book value of goodwill formed by business merger is allocated to relevant asset groups
according to reasonable methods from the date of purchase; If it is difficult to allocate to the relevant asset
group allocate it to the relevant asset group portfolio. When allocating the book value of goodwill to the
relevant asset group or asset group portfolio it shall be allocated according to the proportion of the fair value of
each asset group or asset group portfolio to the total fair value of the relevant asset group or asset group
portfolio. If it is difficult to reliably measure the fair value it shall be apportioned according to the proportion of
the book value of each asset group or asset group portfolio to the total book value of the relevant asset group or
asset group portfolio. When carrying out impairment test on relevant asset groups or asset group portfolio
containing goodwill if there are signs of impairment on asset groups or asset group portfolio related to goodwill
first carry out impairment test on asset groups or asset group portfolio that do not contain goodwill calculate
the recoverable amount and compare it with the relevant book value to recognize the corresponding impairment
loss. Then carry out impairment test on the asset group or asset group portfolio containing goodwill and
compare the book value of these relevant asset groups or asset group portfolio (including the book value of the
allocated goodwill) with its recoverable amount. If the recoverable amount of the relevant asset group or asset
group portfolio is lower than its book value recognize the impairment loss of goodwill.Once the above-mentioned asset impairment losses are recognized they will not be reversed in future
accounting periods.
4931. Long-term expenses to be apportioned
Long-term deferred expenses refer to the expenses that have been incurred by the Company but should be
borne by the current period and subsequent periods with an amortization period of more than 1 year including
the improvement expenses of fixed assets rented by operating lease. Long-term deferred expenses shall be
amortized evenly during the benefit period of relevant projects.Category Amortization years
Decoration and maintenance fee 3-6 years
32. Contractual liability
Contractual liabilities reflect the Company's obligation to transfer goods to customers for received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company
has obtained the unconditional right to receive the contract consideration before the Company transfers the
goods to the customer the contractual liabilities shall be recognized according to the amount received or
receivable when the customer actually issues the payment or the payment is due whichever is earlier.Contract assets and contractual liabilities under the same contract are listed on a net basis and contract
assets and contractual liabilities under different contracts are not offset.
33. Employee compensation
(1) Accounting treatment for short-term compensation
Short-term salary refers to the employee's salary that the Company needs to pay in full within 12 months
after the end of the annual report period when employees provide relevant services except post-employment
benefits and dismissal benefits. During the accounting period when employees provide services the Company
recognizes the actual short-term salary as a liability and includes it into relevant asset costs and expenses
according to the beneficiaries of employees' services.
(2) Accounting treatment for post-employment benefit
Post-employment benefits refer to various forms of remuneration and benefits provided by the Company
after employees retire or terminate labor relations with the Company in order to obtain services provided by
employees except short-term remuneration and dismissal benefits. Post-employment benefit plans include
defined contribution plan and defined benefit plans. Defined contribution plan refers to the post-employment
benefit plan in which the Company will not undertake further payment obligations after paying a fixed fee for
an independent fund; Defined benefit plan refers to the post-employment benefit plan except the defined
contribution plan.
(1) Defined contribution plan
Defined contribution plan includes basic old-age insurance and unemployment insurance. During the
accounting period when employees provide services for the Company the amount payable shall be calculated
according to the local payment base and proportion recognized as liabilities and included in the current profits
and losses or related asset costs.
50During the accounting period when employees provide services the amount payable calculated according
to the defined contribution plan is recognized as a liability and included in the current profits and losses or
related asset costs.
(2) Defined benefit plan
According to the formula determined by the expected cumulative benefit unit method the Company
attributes the benefit obligations generated by defined benefit plan to the period when employees provided
services and includes them in the current profits and losses or related asset costs. The employee compensation
cost caused by defined benefit plan of the Company includes the following components:
A. Service costs including current service costs past service costs and settlement gains or losses. Current
service costs refer to the increase in the present value of defined benefit plan obligations caused by employees'
provision of services in the current period; Past service costs refer to the increase or decrease of the present
value of defined benefit plan obligations related to employee service in the previous period caused by the
revision of the defined benefit plan.B. Net interest of net liabilities or net assets in defined benefit plan including the interest income of
planned assets the interest expense of defined benefit plan obligations and the interest affected by the asset
ceiling.C. Changes arising from re-measurement of net liabilities or net assets in defined benefit plan.Unless other accounting standards require or allow employee benefit costs to be included in the asset costs
the Company will include the above items A and B in the current profits and losses and include Item C in other
comprehensive income which will not be transferred back to profit or loss in subsequent accounting periods but
these amounts recognized in other comprehensive income can be transferred within the scope of equity.
(3) Accounting for retirement benefits
Dismissal benefits refer to the compensation provided to employees by the Company for terminating the
labor relationship with employees before the expiration of their labor contracts or for encouraging employees to
voluntarily accept layoffs. If the Company provides dismissal benefits to employees the employee
compensation liabilities arising from the dismissal benefits shall be recognized at the earlier of the following
two dates and included in the current profits and losses: when the Company cannot unilaterally withdraw the
dismissal benefits provided by the plan to terminate labor relations or the proposal to cut back; When the
Company recognizes the costs or expenses related to the reorganization involving the payment of dismissal
benefits.
(4) Accounting for other long-term employee benefits
Other long-term employee benefits refer to all employee compensation except short-term salary post-
employment benefits and dismissal benefits including long-term paid absences long-term disability benefits
and long-term profit sharing plans. Other long-term employee benefits provided by the Company to employees
if they meet the requirements of the defined contribution plan shall be handled in accordance with the relevant
provisions of the defined contribution plan; For other long-term employee benefits other than the above the net
liabilities or net assets of other long-term employee benefits shall be recognized and measured according to the
relevant regulations of the defined benefit plan. At the end of the reporting period the Company attributed the
benefit obligations arising from other long-term employee benefits to the period when employees provided
services and included them in the current profits and losses or related asset costs.
5134. Accrual liability
If the Company's obligation related to contingencies meet the following conditions at the same time it
will be recognized as a liability: (1) This obligation is the current obligation undertaken by the Company; (2)
The performance of this obligation may lead to the outflow of economic benefits; (3) The amount of the
obligation can be measured reliably.All or part of the expenditures required for the estimated liabilities are expected to be compensated by the
third party or other parties and the compensation amount is recognized as an asset separately when it is
basically determined that it can be received and the recognized compensation amount does not exceed the book
value of the recognized liabilities. The estimated liabilities are initially measured according to the best estimate
of the expenditure required to perform the relevant current obligations with the factors related to contingencies
such as risks uncertainties and time value of money comprehensively considered. If the time value of money
has a significant impact the best estimate shall be determined by discounting the relevant future cash outflows.On the balance sheet date the Company reviews the book value of the estimated liabilities. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate such book value will be
adjusted according to the current best estimate.
35. Share-based payment
1. Types of share-based payment
Share-based payment of the Company is divided into cash-settled share-based payment and equity-settled
share-based payment.Equity-settled share-based payment shall be measured at the fair value of equity instruments granted to
employees. If it is exercisable immediately after the grant it will be included in the relevant costs or expenses
according to the fair value of the equity instrument on the grant date and the capital reserve will be increased
accordingly. If it is exercisable only after the service within the waiting period is completed or the specified
performance conditions are met on each balance sheet date within the waiting period the service obtained in
the current period shall be included in the relevant costs or expenses and capital reserve based on the best
estimate of the number of exercisable equity instruments and according to the fair value on the grant date of the
equity instruments. After the vesting date the recognized related costs or expenses and the total owners' equity
will not be adjusted.Cash-settled share-based payment shall be measured at fair value of liabilities calculated and determined
based on shares or other equity instruments undertaken by the Company. If it is exercisable immediately after
the grant it will be included in the relevant costs or expenses at the fair value of the liabilities undertaken by the
Company on the grant date and the liabilities will be increased accordingly. For cash-settled share-based
payment exercisable after the service in the waiting period is completed or the specified performance conditions
are met the service obtained in the current period shall be included in the costs or expenses and corresponding
liabilities on each balance sheet date during the waiting period based on the best estimate of the vesting
situation and according to the fair value of the liabilities undertaken by the Company. On each balance sheet
date and settlement date before the settlement of related liabilities the fair value of liabilities is re-measured
and its changes are included in the current profits and losses.
2. Accounting treatment related to implementation modification and termination of share-based payment
plan
52No matter how the terms and conditions of the granted equity instruments are modified or even the grant
of the equity instruments is cancelled or the equity instruments are settled the Company shall at least recognize
that the corresponding services obtained are measured according to the fair value of the granted equity
instruments on the grant date unless the vesting conditions of the equity instruments (except market conditions)
cannot be met.If the Company cancels the granted equity instruments or settles the granted equity instruments within the
waiting period (except those cancelled due to failure to meet the conditions of vesting conditions) the treatment
is as follows:
(1) The cancellation or settlement will be treated as accelerated vesting and the amount that should have
been recognized in the remaining waiting period will be recognized immediately.
(2) All the money paid to employees at the time of cancellation or settlement shall be treated as the
repurchase of equity and the part paid for repurchase that is higher than the fair value of the equity instrument
on the repurchase date shall be included in the current expenses.
(3) If a new equity instrument is granted to employees and it is determined that the new equity
instrument granted is used to replace the cancelled equity instrument on the grant date of the new equity
instrument the Company shall handle the granted alternative equity instrument in the same way as the
modification of the terms and conditions of the original equity instrument.
36. Other financial instruments including preferred stock and perpetual bonds
37. Revenue
Disclosure of accounting policies adopted in income recognition and measurement according to business types
The Company has fulfilled its contractual obligations that is to recognize the income when the customer
obtains the control right of relevant goods. Performance obligation refers to the commitment to transfer clearly
distinguishable goods to customers in the contract. The Company evaluates the contract on the contract start
date to identify each individual performance obligation contained in the contract. If the following conditions are
met at the same time it is clearly distinguishable goods:
(1) Customers can benefit from the goods itself or from the use of the goods along with other easily
available resources;
(2) The commitment to transfer the goods to customers can be distinguished separately from other
commitments in the contract.The following situations usually indicate that the commitment to transfer the goods to customers cannot
be distinguished separately from other commitments in the contract:
(1) Significant services need to be provided to integrate the goods and other goods promised in the
contract into the combined output agreed in the contract and transfer it to customers;
(2) The goods will make major modifications or customizations to other goods promised in the contract;
(3) The goods are highly correlated with other goods promised in the contract.
The transaction price is the amount of consideration that the Company is expected to receive for
transferring the goods to customers excluding the payment collected on behalf of third parties and the payment
that the Company is expected to return to customers. When determining the transaction price of the contract if
there is a variable consideration the Company will determine the best estimate of the variable consideration
according to the expected value or the most likely amount and include it in the transaction price at an amount
not exceeding the amount that is unlikely to be significantly reversed when the relevant uncertainty is
53eliminated. If there is a significant financing component in the contract the Company will determine the
transaction price according to the amount payable in cash when the customer obtains the goods control right
and the difference between the transaction price and the contract consideration will be amortized by the
effective interest rate method during the contract period. If the interval between the customer obtaining the
goods control right and the customer paying the price is less than one year the Company will not consider the
financing component. When the consideration that the Company has the right to collect from the customer due
to the transfer of goods is in the form of non-cash the Company will determine the transaction price according
to the fair value of the non-cash consideration on the contract start date. If the fair value of the non-cash
consideration cannot be reasonably estimated the Company will indirectly determine the transaction price with
reference to the individual selling price of the goods it promised to transfer to customers. For the payment that
the Company expects to return to customers except for obtaining other clearly distinguishable goods from
customers the consideration payable shall be used to offset the transaction price. If the consideration payable to
customers exceeds the fair value of clearly distinguishable goods obtained from customers the excess amount
shall be used as the consideration payable to customers to offset the transaction price. If the fair value of clearly
distinguishable goods obtained from customers cannot be reasonably estimated the Company will fully offset
the transaction price from the consideration payable to customers. When carrying out accounting treatment on
the transaction price offset by the consideration payable to customers the Company will offset the current
income at the later time of recognizing the relevant income and paying (or promising to pay) the customer
consideration.If the contract contains two or more performance obligations the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods promised by each individual performance obligation on the contract start date and measure
the income according to the transaction price allocated to each individual performance obligation. In case of
subsequent changes in the transaction price the Company will allocate the subsequent changes to the
performance obligations in the contract according to the basis adopted on the contract start date. The transaction
price will not be re-allocated due to the change of individual selling price after the contract start date.If any of the following conditions is met the Company will perform its obligations within a certain period
of time; Otherwise it is a fulfillment of performance obligation at a certain time point:
(1) Customers gain and consume the economic benefits brought by the Company's performance at the
same time;
(2) Customers can control the goods under construction during the performance of the Company;
(3) The goods produced during the performance of the Company have irreplaceable uses and the
Company has the right to collect payment for the accumulated part of the performance completed so far during
the whole contract period.For the performance obligations performed in a certain period of time the Company shall recognize the
income according to the performance progress during that period except that the performance progress cannot
be reasonably determined. The Company determines the performance progress of provided services according
to the input method. When the performance progress cannot be reasonably recognized if the cost already
incurred by the Company is expected to be compensated the revenue will be recognized according to the cost
amount already incurred until the performance progress can be reasonably recognized.For the performance obligations fulfilled at a certain time point the Company recognizes the income
when the customer obtains the control right of relevant goods. When judging whether the customer has obtained
the control of the goods the Company will consider the following signs:
54(1) The Company is entitled to the right of real time payment collection for the goods that is the
customer has the real time payment collection obligation for the goods;
(2) The Company has transferred the legal ownership of the goods to the customer that is the customer
has the legal ownership of the goods;
(3) The Company has transferred the goods in kind to the customer that is the customer has occupied the
goods in kind;
(4) The Company has transferred the main risks and rewards on the ownership of the goods to the
customer that is the customer has obtained the main risks and rewards on the ownership of the goods;
(5) The customer has accepted the goods.
According to whether the Company has control over the goods or services before transferring them to
customers the Company judges whether it is the main responsible person or the agent when engaging in
transactions. If the Company can control the goods or services before transferring them to customers the
Company is the main responsible person and the income is recognized according to the total consideration
received or receivable; Otherwise the Company is an agent and will recognize the income according to the
expected amount of commission or handling fee which is determined according to the net amount of the total
consideration received or receivable after deducting the price payable to other interested parties or according to
the established commission amount or proportion.The situations in which the Company can control the goods before transferring them to customers include
the following:
(1) The enterprise transfers the control right of goods or other assets to the customer after it obtains it from
a third party;
(2) The enterprise can lead the third party to provide services to customers on behalf of the enterprise;
(3) After the enterprise obtains the control right of the goods from the third party it integrates the goods
with other goods into a combined output and transfers it to the customer by providing significant services.When judging whether it has control over the goods before transferring them to customers the Company
comprehensively considers all relevant facts and circumstances including:
(1) The enterprise bears the main responsibility for transferring goods to customers;
(2) The enterprise bears the inventory risk of the goods before or after their transfer;
(3) The enterprise has the right to decide the prices of the goods for trade independently;
(4) Other relevant facts and circumstances.
Different income recognition methods and measurement methods involved in different business models adopted
by similar businesses
The Company's commodity sales mainly include circulation sales shopping mall joint operation and
proprietary e-commerce and the recognition methods of sales revenuethese three ways are as follows:
(1) Circulation sales refers to that the Company recognizes the sales revenue when the goods are delivered
to the customer and the authorized representative or the first carrier recognized by the customer at the
designated place and the customer and the authorized representative or the first carrier have signed for it and
the Company has received the payment or obtained delivery documents.
(2) The shopping mall joint operation is the Company cooperates with the shopping mall to carry out joint sales
in the form of counters in the shopping mall and according to the agreement signed with the shopping mall the
shopping mall collects the payment when the Company's counters sell goods to customers and the Company
and the shopping mall carry out sales settlement. The shopping mall pays the Company after reconciling with
the Company at the agreed settlement time (generally the next month) and deducting the income and related
55expenses enjoyed by the shopping mall. The Company recognizes the sales revenue after deducting the
deduction profit belonging to the shopping mall according to the full amount of the completed transaction of
actual sales in the month.
(3) Proprietary e-commerce refers to that the Company retails through third-party e-commerce platforms
(such as Tmall and JD.COM) and recognizes the sales revenue when the customer signs for the goods and
obtains the payment or payment right.
38.Contract cost
Contract costs include incremental costs incurred in obtaining contract and contract performance costs.The incremental costs incurred to obtain the contract refer to the costs that the Company would not have
incurred if the contract had not been obtained (e.g. sales commission etc.). If the cost is expected to be
recovered the Company recognizes it as an asset for the costs of acquiring the contract. Expenses incurred by
the Company in obtaining the contract other than the incremental costs that are expected to be recovered are
included in profit or loss for the current period when incurred.If the costs incurred for the performance of the contract are not subject to the scope of the relevant
standards such as inventory fixed assets or intangible assets and the following conditions are met at the same
time the Company recognizes them as an asset for contract performance costs:
(1) the cost is directly related to a current or an anticipated contract including direct labor direct materials
manufacturing expenses (or similar expenses) costs expressly borne by the customer and other costs
incurred solely as a result of the contract;
(2) the cost increases the resources that the enterprise will use to fulfill its performance obligations in the
future;
(3) the cost is expected to be recovered.
The asset as recognized by the cost of acquiring the contract and the asset as recognized by the cost of
performance of the contract are amortized on the same basis as the revenue recognition of the goods or services
related to the assets and are included in profit or loss for the current period.If the carrying amount of an asset related to the contract cost is higher than the following two differences
the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(1) The residual consideration that the enterprise is expected to receive as a result of the transfer of
commodities related to the asset;
(2) An estimate of the costs to be incurred for the transfer of the relevant goods.
If the factors of impairment in the previous period change subsequently so that the difference by (1)
minus (2) is higher than the carrying amount of the asset the original provision for impairment of the asset shall
be reversed and included in the profit or loss for the current period but the carrying amount of the reversed
asset shall not exceed the carrying amount of the asset on the reversal date assuming that no provision for
impairment is made.
5639. Government subsidies
1. Types of government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the company from
the government free of charge including government subsidies related to assets and government subsidies
related to income.Asset-related government subsidies refer to government subsidies obtained by a company for the
acquisition construction or other formation of long-term assets.Income-related government subsidies refer to government subsidies other than asset-related government
subsidies.
2. The principle and timing of recognition of government subsidies
Recognition principle of government subsidies:
(1) The company is able to meet the conditions attached by the government subsidy;
(2) The company is able to receive government subsidies.
The government subsidy can only be recognized if the above conditions are met at the same time.
3. Measurement of government subsidies
(1) If the government subsidy is a monetary asset the company shall measure it according to the amount
received or receivable;
(2) If the government subsidy is a non-monetary asset the company shall measure it at fair value and if
the fair value cannot be reliably obtained it shall be measured at the notional amount (the notional amount is
RMB 1).
4. Accounting treatment of government subsidies
(1) Asset-related government subsidies are written off the carrying amount of the underlying assets or
recognized as deferred income upon acquisition. If it is recognized as deferred income it shall be included in
profit or loss in installments in accordance with a reasonable and systematic method during the useful life of the
relevant asset. Government subsidies measured in notional amounts are directly included in profit or loss for the
current period.
(2) Government subsidies related to income shall be handled as follows:
A. If it is used to compensate the company for the relevant costs expenses or losses in subsequent periods
it shall be recognized as deferred income at the time of acquisition and shall be included in the profit or loss for
the current period or offset the relevant costs during the period when the relevant costs expenses or losses are
recognized.
57B. If it is used to compensate for the relevant costs expenses or losses incurred by the company it shall be
directly included in the current profit or loss or offset the relevant costs when acquired.
(3) For government subsidies that are included in both the asset-related part and the income-related part if
they can be distinguished they shall be accounted for separately in different parts and if it is difficult to
distinguish they shall be classified as income-related government subsidies as a whole.
(4) Government subsidies related to the company's routine operations shall be included in other income or
offset related costs and expenses according to the economic business substance. Government subsidies
unrelated to the company's routine activities are included in non-operating income and expenditure. If the
finance department directly allocates the discount funds to the company the company will offset the relevant
borrowing costs with the corresponding discount.
(5) If the confirmed government subsidy needs to be returned it shall be handled according to the
following circumstances:
A. If the carrying amount of the relevant asset is reduced at the time of initial recognition the carrying
amount of the asset shall be adjusted.B. If there is relevant deferred income the carrying amount of the relevant deferred income shall be written
off and the excess part shall be included in the profit or loss for the current period.C. If it belongs to other circumstances it shall be directly included in the profit or loss for the current period.
40. Deferred tax assets/deferred tax liabilities
When the company acquires assets and liabilities it determines its tax base. If there is a temporary
difference between the carrying amount of assets and liabilities and their tax base the deferred tax assets or
deferred tax liabilities arising from them shall be recognized in accordance with the regulations.
1. Recognition of deferred tax assets
(1) The company recognizes deferred tax assets arising from deductible temporary differences to the
extent that it is likely to obtain taxable income that can be used to offset deductible temporary differences.However deferred tax assets arising from the initial recognition of assets or liabilities are not recognized in
transactions that (1) is not a business combination and (2) the transaction does not affect either accounting
profits or taxable income (or deductible losses) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax assets for deductible temporary differences
related to investments in subsidiaries associates and joint ventures that meet the following conditions at the
same time: (1) the temporary differences are likely to be reversed in the foreseeable future and (2) the taxable
income used to offset the deductible temporary differences is likely to be obtained in the future.
(3) For deductible losses and tax credits that can be carried forward to subsequent years in accordance
with the provisions of the tax law they shall be treated as deductible temporary differences and the
corresponding deferred tax assets shall be recognized to the extent that the future taxable income that is likely to
be used to offset the deductible losses and tax credits.
2. Recognition of deferred tax liabilities
58(1) The company recognizes all deferred tax liabilities arising from taxable temporary differences except
for the deferred income tax liabilities arising from the following transactions: (1) the initial recognition of
goodwill and (2) the initial recognition of assets or liabilities arising from transactions that satisfy both the
following characteristics: the transaction is not a business combination and the transaction does not affect either
the accounting profit or the taxable income (or deductible loss) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax liabilities for taxable temporary differences
related to investments in subsidiaries associates and joint ventures but other than those with the following
conditions are met at the same time: (1) the investment enterprise can control the time for the reversal of the
temporary difference and (2) the temporary difference is likely not to be reversed in the foreseeable future.
3. Presentation of net offsets of deferred tax assets and deferred tax liabilities
When the company has the legal right to settle on a net basis and intends to settle on a net basis or acquire
assets and settle liabilities at the same time the company's current income tax assets and current income tax
liabilities are presented on a net basis after offset.When there is a legal right to settle the current income tax assets and current income tax liabilities on a net
basis and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax
collection and administration department on the same taxpayer or levied by the same tax collection and
administration department to different tax subjects but in each period of reversal of deferred tax assets and
liabilities of material nature in the future the taxpayer involved intends to settle the current income tax assets
and liabilities on a net basis or acquire the assets and settle liabilities at the same time the deferred tax assets
and deferred tax liabilities of the Company are presented on a net basis after offset.
41. Leasing
(1) Accounting treatment as a lessee lease
(1) Right-of-use assets
On the commencement date of the lease term the Company as the lessee recognizes the right to use the
leased asset during the lease term as right-of-use asset except for short-term leases and leases of low-value
assets.Right-of-use assets are initially measured at cost which includes:
A. Initial measurement amount of the lease liability;
B. If there is a lease incentive for the lease payment paid on or before the start date of the lease term the
relevant amount of the lease incentive already enjoyed shall be deducted;
C. Initial direct costs incurred;
D. Costs expected to be incurred to dismantle and remove the leased asset restore the site on which the
leased asset is located or restore the leased asset to the condition agreed in the lease terms except for the
production of inventory.
59The Company adopts the cost model for the subsequent measurement of right-of-use assets and adopts the
straight-line method for depreciation of various types of right-of-use assets.If the Company is able to reasonably determine that the ownership of the leased assets will be acquired at
the expiration of the lease term the depreciation shall be accrued during the remaining useful life of the leased
assets and if it cannot be reasonably determined that the ownership of the leased assets can be acquired at the
expiration of the lease term the depreciation shall be accrued during the period which is shorter from the lease
term and the remaining useful life of the leased assets. If the right-of-use asset is impaired the Company will
carry out subsequent depreciation based on the carrying amount of the right-of-use asset after deducting the
impairment loss.When the Company remeasures lease liabilities based on the present value of the changed lease payments
and adjusts the carrying amount of right-of-use assets accordingly if the carrying amount of right-of-use assets
has been reduced to zero but the lease liabilities still need to be further reduced the remaining amount will be
included in profit or loss for the current period.The impairment test method and impairment provision method of right-of-use assets are detailed in
(XXVII) Impairment of long-term assets of this accounting policy.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes the present value of unpaid lease
payments as lease liabilities excluding short-term leases and leases of low-value assets.When calculating the present value of the lease payment the Company as the lessee uses the interest rate
implicit in the lease as the discount rate and if the interest rate implicit in the lease cannot be determined the
incremental borrowing rate of the Company is used as the discount rate.The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed
periodic interest rate and includes them in profit or loss for the current period. Variable lease payments that are
not included in the measurement of lease liabilities are recognized in profit or loss for the current period when
they are actually incurred.After the commencement date of the lease term the Company will remeasure the lease liability based on
the present value of the changed lease payment in the event of a change in the amount of the substantial fixed
payment a change in the estimated amount payable for the residual value of the guarantee a change in the
index or ratio used to determine the amount of the lease payment a change in the evaluation result or actual
exercise of the option to purchase renew or terminate the option.
(3) Short-term leases and leases of low-value assets
A short-term lease is a lease with a lease period of not more than 12 months on the start date of the lease
term and does not include an option to purchase. A lease of a low-value asset refers to a lease with a low value
when a single leased asset is a brand-new asset. If the Company subleases or expects to sublease the leased
assets the original lease is not a low-value asset lease.The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets and to include the relevant lease payments in profit or loss or the cost of related
assets on a straight-line basis for each period of the lease term.
（2） Accounting treatment as a lessor's lease
60On the lease commencement date the Company divides the lease into the finance lease and the operating
lease. A financial lease refers to a lease that substantially transfers almost all of the risks and rewards associated
with the ownership of the leased asset regardless of whether the ownership is ultimately transferred. Operating
leases refer to leases other than financial leases. When the Company acts as a subleaselessor it classifies the
sublease based on the right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-line basis for each
period of the lease term. The Company capitalizes the initial direct expenses incurred in connection with the
operating lease and apportion them to profit or loss for the current period on the same basis as the rental income
recognition during the lease term. Variable lease payments that are not included in lease receipts are recognized
in profit or loss for the current period when they are actually incurred.
(2) Accounting treatment of financial leases
On the lease commencement date the Company recognizes the financial lease receivables for the financial
lease and terminates the recognition of the financial lease assets. When the Company initially measures the
financial lease receivables the net lease investment is recorded as the entry value of the financial lease
receivables. The net lease investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate implicit in the lease.The Company calculates and recognizes interest income for each period of the lease term at a fixed
periodic interest rate. The derecognition and impairment of financial lease receivables are described in (Xl)
Financial instruments of this accounting policy.Variable lease payments that are not included in the net measurement of lease investments are recognized
in profit or loss for the period when they are actually incurred.
42. Other important accounting policy and estimation
43. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
□Applicable □Not applicable
(2) Changes of important accounting estimation
□Applicable □Not applicable
（3） The Company started implementing the updated accounting standards commencing from 2024
and adjusted the relevant items in the financial statements at the beginning of the very year involved in
the initial implementation of the said standards
□Applicable □Not applicable
44.Other
Nil
61VI. Taxes
1. Main tax and tax rate
Type of tax Tax calculation evidence Tax rate
Sales of goods taxable labor service
revenue taxable income intangible
Value added tax 5%6%9%13%
assets income and income from property
leasing
City maintenance & construction tax VAT payable 7%
Enterprise income tax Taxable income See below for details
Education Fee Surcharge VAT payable 3%
Local education fee surcharge VAT payable 2%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Shenzhen China Bicycle Company (Holdings) Co. Ltd. 0.25
Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd 0.25
Shenzhen Xinsen Precision Manufacturing Co.Ltd. 0.2
Shenzhen Emmelle Industrial Co. Ltd. 0.2
Shenzhen Emmelle Cloud Technology Co. Ltd. 0.2
Fujian Huaxinbao Jewelry Co. Ltd. 0.2
Shenzhen Huabao Zhenxuan Jewelry Co. Ltd. 0.2
Hainan Shenhua Industry Co. Ltd. 0.2
Tibet Jinyaya Trading Co. Ltd. 0.2
Shenzhen Yunyouxuan Jewelry Technology Co. Ltd. 0.2
Dongguan Xinsen Jewelry Co. Ltd. 0.2
Hangzhou Huabaohui Digital culture Co. Ltd. 0.2
2. Tax preference
The subsidiaries/sub-subsidiaries Shenzhen Xinsen Precision Manufacturing Co. Ltd. Shenzhen Emmelle
Industry Co. Ltd. Shenzhen Emmelle Cloud Technology Co. Ltd. Fujian Huaxinbao Jewelry Co. Ltd.Shenzhen Huabao Zhenxuan Jewelry Co. Ltd. Hainan Shenhua Industry Co. Ltd. Tibet Jinyaya Trading Co.Ltd. Shenzhen Yunyouxuan Jewelry Technology Co. Ltd. Dongguan Xinsen Jewelry Co. Ltd. and Hangzhou
Huabaohui Digital Culture Co. Ltd. meet the conditions of "small enterprise with low profits". According to
Announcement No.12 of the State Taxation Administration of the Ministry of Finance in 2023 Announcement
on Relevant Tax and Fee Policies for Further Supporting the Development of Small and Micro Enterprises and
Individual Businesses the taxable income of small enterprises with low profits is calculated at a reduced rate of
25% and the enterprise income tax is paid at a rate of 20% which will be implemented until December 31
2027.
3.Other
Nil
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RMB/CNY
62Item Ending balance Opening balance
Cash on hand 33597.75 13955.25
Bank deposit 24485123.52 54134719.15
Other monetary fund 646837.10
Total 25165558.37 54148674.40
Other note：
The other monetary funds in the opening balance of RMB 566435.02 are frozen funds in litigation.
2. Trading financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Including:
Including:
Other note：
3. Derivative financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Other note：
4. Note receivable
(1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
Bank acceptance bill 0.00 0.00
Commercial acceptance bill 0.00 0.00
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Ending balance Opening balance
Category Book balance Bad debt provision Book Book balance Bad debt provision Book
Amount Ratio Amount Ratio value Amount Ratio Amount Ratio value
Including:
Including:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected
credit losses please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
63□Applicable □Not applicable
(3) Bad debt provision accrual collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
□Applicable □Not applicable
(4) Note receivable pledged at period-end
Unit: RMB/CNY
Item Amount pledged at period-end
(5) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
Unit: RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
(6) Note receivable actually written-off in the period
Unit: RMB/CNY
Item Amount written off
Including important note receivable written-off:
Unit: RMB/CNY
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on note receivable written-off:
5. Account receivable
(1)Category
（1）Disclosure according to the aging of accountBy account age
64Unit: RMB/CNY
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 231237174.94 193373233.68
1-6 months 217056912.12 192466106.48
7-12 months 14180262.82 907127.20
1-2 years 13070098.35 13036723.35
2-3 years 11266027.02 10764196.13
Over 3 years 3564121.31 4153455.77
3-4 years 1264775.39 1812809.85
4-5 years 917542.00 966132.00
Over 5 years 1381803.92 1374513.92
Total 259137421.62 221327608.93
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt 264975 238625 263497 265388 239020 263683
10.23%90.06%11.99%90.06%
provisio 39.97 60.33 9.64 39.97 00.33 9.64
n by
single
Includin
g：
Single
264975238625263497265388239020263683
identific 10.23% 90.06% 11.99% 90.06%
39.9760.339.6439.9700.339.64
ation
Accrual
of bad
debt 232639 729418. 231910 194788 113247 193656
89.77%0.31%88.01%0.58%
provisio 881.65 38 463.27 768.96 5.60 293.36
n by
portfolio
Includin
g：
Aging 232639 729418. 231910 194788 113247 193656
89.77%0.31%88.01%0.58%
portfolio 881.65 38 463.27 768.96 5.60 293.36
Related
Portfoli
o
259137245919234545221327250344196293
Total 100.00% 9.49% 100.00% 11.31%
421.6278.71442.91608.9375.93133.00
Bad debt provision accrual on single basis: Single identification
Unit: RMB/CNY
Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
22019832.63 19817849.37 22019832.63 19817849.37 90.00% difficult to
Technology
recover
Co. Ltd.Suzhou 915394.42 732315.54 906094.42 724875.54 80.00% Expected to be
65Daming difficult to
Vehicle recover
Industry Co.Ltd.Suzhou Jiaxin Expected to be
Economic 888757.00 888757.00 888757.00 888757.00 100.00% difficult to
Trade Co. Ltd. recover
Dongguan
Expected to be
Daxiang New
626734.00 626734.00 594734.00 594734.00 100.00% difficult to
Energy Co.recover
Ltd.Ningbo
Fanxing New Expected to be
Energy 503555.00 251777.50 503555.00 251777.50 50.00% difficult to
Technology recover
Co. Ltd.Shijiazhuang Expected to be
Dasong Tech. 497064.00 497064.00 497064.00 497064.00 100.00% difficult to
Co. Ltd recover
Guangdong
Expected to be
Xinlingjia New
348136.00 348136.00 348136.00 348136.00 100.00% difficult to
Energy Co.recover
Ltd.Shanghai
Expected to be
Siwen Electric
280197.50 280197.50 280197.50 280197.50 100.00% difficult to
Vehicle Co.recover
Ltd.Fuzhou Dayang Expected to be
Commercial 147804.28 147804.28 147804.28 147804.28 100.00% difficult to
Co. Ltd. recover
Tianjin Huiju Expected to be
Electric Vehicle 116840.14 116840.14 116840.14 116840.14 100.00% difficult to
Co. Ltd. recover
Expected to be
Other 194525.00 194525.00 194525.00 194525.00 100.00% difficult to
recover
Total 26538839.97 23902000.33 26497539.97 23862560.33
Bad debt provision accrual on portfolio: Aging portfolio
Unit: RMB/CNY
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
1-6 months 217056912.12 222700.44 0.10%
7-12 months 14023262.62 253847.01 1.81%
Within 1 year 231080174.74 476547.44 0.21%
1-2 years 1557982.80 251146.82 16.12%
2-3 years
3-4 years 1724.11 1724.11 100.00%
Total 232639881.65 729418.38
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□Applicable□Not applicable
66(3) Bad debt provision accrual collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Ending balance
balance Collected or Accrual Write off Other
reversal
Accounts
receivable with
individual 23902000.33 39440.00 23862560.33
provision for
bad debts
Provision for
bad debts based
on a portfolio 1132475.60 403057.22 729418.38
of credit risk
characteristics
Total 25034475.93 442497.22 24591978.71
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
(4) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
Item Amount written off
Including major account receivables write-off:
Unit: RMB/CNY
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
（5）The top five accounts receivable and contract assets at the end of the period aggregated according
to debtor
Unit: RMB/CNY
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Fuxhou Cangshan
64641636.470.0064641636.4724.94%53410.54
Dingjue Jewelry
67Company
Shenzhen
Yunshang Jewelry 53804174.39 0.00 53804174.39 20.76% 37662.92
Co. Ltd.Fuzhou Zhuanjin
29378138.760.0029378138.7611.34%20564.70
Jewelry Co. Ltd.Fuzhou Rongrun
28456461.470.0028456461.4710.98%21974.74
Jewelry Co. Ltd
Shenzhen
Hualinglong
Jewelry Culture 27777456.95 0.00 27777456.95 10.72% 22009.10
Technology Co.Ltd
Total 204057868.04 0.00 204057868.04 78.74% 155622.00
6. Contract assets
(1) Information of contract assets
Unit: RMB/CNY
Ending balance Opening balance
Item Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
(2) The significant amount change in book value during the reporting period and its reason
Unit: RMB/CNY
Item The amount of change Reason for change
（3） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
□Applicable □Not applicable
(4) Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Item Accrual Collected or reversal Write off Reason
Thereinto the important amount of bad debt provision recovered or reversed in the current period:
68Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
（5） Contract assets actually written off in the current period
Unit: RMB/CNY
Item Amount written off
Including important Contract asset written-off:
Unit: RMB/CNY
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
Other note：
7. Receivable financing
（1） Classification of receivables financing
Unit: RMB/CNY
Item Ending balance Opening balance
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
Unit: RMB/CNY
Phase I Phase II Phase III
Bad debt provision Total
Expected credit losses Expected credit losses Expected credit losses
69over next 12 months for the entire duration for the entire duration
(without credit (with credit impairment
impairment occurred) occurred)
January 1 2024
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Explanation of the significant changes in the book balance of receivables financing with changes in loss
provisions in the current period:
（3） Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Opening
Category Current changes Ending balance
balance
Thereinto the important amount of bad debt provision recovered or reversed in the current period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
（4）Financing of accounts receivable pledged by the Company at the end of the period
Unit: RMB/CNY
Item Pledged amount at the end of the period
（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
Unit: RMB/CNY
The amount of derecognition at the end The amount not derecognized at the end
Item
of the period of the period
（6） Financing situation of accounts receivable actually written off in this period
Unit: RMB/CNY
Item Write-off amount
The write off information of important accounts receivable financing thereinto
70Unit: RMB/CNY
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
(7) Changes in accounts receivable financing and fair value changes in the current period
（8）Other note
8. Other account receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account receivable 697860.12 12868327.03
Total 697860.12 12868327.03
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
2) Important overdue interest
Unit: RMB/CNY
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
3) Accrual of bad debt provision
□Applicable □Not applicable
4） Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
71Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
5)Interest receivable actually written off in the current period
Unit: RMB/CNY
Item Write-off amount
Important Interest receivables write-offs thereinto
Unit: RMB/CNY
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Other note：
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or the invested entity) Ending balance Opening balance
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
3) Accrual of bad debt provision
□Applicable □Not applicable
724） Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Current changes
Opening
Category
balance Collected or
Ending balance
Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
5) Dividends receivable actually written off in the current period
Unit: RMB/CNY
Item Write-off amount
Important dividend receivables write-offs thereinto
Unit: RMB/CNY
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Other note：
(3) Account receivable
1) By nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Performance compensation 12098051.76
Deposit or margin 524345.30 461321.30
Personal loan of employees 297817.61 15865.25
Payment for equipment 311400.00 311400.00
Current account 180923.78 410737.50
Other 0.00 0.00
Total 1314486.69 13297375.81
732）By account aging
Unit: RMB/CNY
Aging Ending book balance Opening book balance
Within one year(one year included) 565469.81 12747197.43
1-2 years 312285.88 123447.38
2-3 years 10000.00
Over 3 years 426731.00 426731.00
3-4 years 15831.00 15831.00
4-5 years 0
Over 5 years 410900.00 410900.00
Total 1314486.69 13297375.81
3) Accrual of bad debt provision
□Applicable□Not applicable
4）Bad debt provision accrual collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Provision for
bad debts
according to the 429048.78 187577.79 616626.57
combination of
credit risk
Total 429048.78 187577.79 616626.57
Including important amount of bad debt provision collected or reversal in the period:
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
5） Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
Item Amount written off
Including major other account receivables write-off:
Unit: RMB/CNY
Amount written Amount cause by
Enterprise Other Nature Causes Procedure
off related
74transactions or not
(Y/N)
Other Note on account receivable write-off:
6） Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Shenzhen Luwei
Mechatronic Payment for
300000.00 Within 5 years 22.82% 300000.00
Equipment Co. equipment
Ltd
Shenzhen Luohu
1－2 years
Government
（Within oneProperty Margin or deposit 161349.10 12.27% 51809.20
Management year(2 years
Office included)
Within one
Chow Tai Seng
Margin or deposit 100000.00 year(one year 7.61% 14600.00
Jewelry Co. Ltd.included)
1－2 years
Guangdong
（Within oneShenzhen Luohu Current account 79473.00 6.05% 25518.78
People’s Court year(2 years
included)
Within one
Hubei Guangshui
Current account 52816.00 year(one year 4.02% 7711.14
People’s Court
included)
Total 693638.10 52.77% 399639.12
7) Reported in other receivables due to centralized management of funds
Other note：
9. Accounts paid in advance
(1) Accounts paid in advance by ageing
Unit: RMB/CNY
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 1549358.48 41.00% 3821181.16 100.00%
1-2 years 2256987.95 59.00%
Total 3806346.43 3821181.16
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
75(2) Top 5 advance payment at ending balance by prepayment object
Name Ending balance Ratio in total advance e payment(%)
Shenzhen Tielbo Co. Ltd. 2256987.95 59.3
Zhouliufu Jewelry Co. Ltd. 872485.54 22.92
Fujian Hengsheng Jewelry Co. ltd. 520000.00 13.66
Shenzhen Thinking Jewelry Display Products Co. Ltd 99746.00 2.62
Shenzhen Cuilu Gold Business 25377.31 0.67
Total 3774596.80 99.17
Other note
10. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industry
No
(1) Category
Unit: RMB/CNY
Ending balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw materials 33206703.08 164842.97 33041860.11 42904972.44 172966.47 42732005.97
Goods
47158698.50374193.8746784504.6336248964.02476356.5735772607.45
inventory
Consigned
processing 8287256.01 8287256.01 3411425.72 3411425.72
materials
Total 88652657.59 539036.84 88113620.75 82565362.18 649323.04 81916039.14The Company shall comply with the disclosure requirement of jewelry-related industries in the “ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
（2）Data resources recognized as inventory
Unit: RMB/CNY
Inventory of Inventory of self Inventory of data
Items outsourced data processed data resources obtained by Total
resources resources other means
76(3)Provision for inventory depreciation or contract performance cost impairment provision
Unit: RMB/CNY
Current increased Current decreased
Opening
Item
balance Switch back or
Ending balance
Accrual Other Other
charge-off
Raw materials 172966.47 8123.50 164842.97
Goods
476356.57102162.70374193.87
inventory
Total 649323.04 110286.20 539036.84
Provision for inventory price decline that is made on a portfolio basis
Unit: RMB/CNY
End of period Beginning of period
Portfolio Name Proportion of Proportion of Provision for Opening Provision for
Ending balance provision for provision for
price decline balance price decline
price decline price decline
The standard for accruing the provision for inventory price decline by portfolio
(4) The explanation of the ending balance of the inventory contains the capitalized amount of borrowing
costs
(5) Explanation of the amortization amount of contract performance costs for the current period
11. Assets held for sale
Unit: RMB/CNY
Expected
Ending book Impairment Ending book Expected
Item Fair value disposal
balance provision value disposal time
expenses
Other note:
12. Non-current asset due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
（1） Debt investment due within one year
□Applicable □Not applicable
77（2）Other Debt investment due within one year
□Applicable □Not applicable
13. Other current assets
Unit: RMB/CNY
Item Ending balance Opening balance
Input tax to be deducted 4336668.75 208524.06
Advance payment of enterprise income
193128.35
tax
Tax amount to be received 1313637.64 10814443.03
Total 5650306.39 11216095.44
Other note：
14. Debt investment
（1）Debt investment
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Changes in impairment provisions for debt investments in the current period
Unit: RMB/CNY
Increase in thecurrent Decrease in the current
Item Opening balance Ending balance
period period
（2） Important debt investment
Unit: RMB/CNY
Ending balance Opening balance
Debt
investment Coupon Coupon Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3） Accrual of impairment provision
Unit: RMB/CNY
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1 2024
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
(4) Information of debt investment actually written off in the current period
78Unit: RMB/CNY
Item Write-off amount
Information of write-off of important debt investments thereinto
Debt Investment Write-off Explanation:
Change of book balance of loss provision with amount has major changes in the period
□Applicable □Not applicable
Other note：
15. Other debt investment
（1）Other debt investment
Unit: RMB/CNY
Cumulative
loss
Change of impairment
Cumulative
Opening Accrued fair value Ending recognized
Item Cost changes of Note
balance interest in the balance in other
fair value
period comprehen
sive
income
Important other debt investment
Changes in provision for impairment of other debt investments in the current period
Unit: RMB/CNY
Increase in the current Decrease in the current
Item Opening balance Ending balance
period period
（2） Important debt investment
Unit: RMB/CNY
Ending balance Opening balance
Debt
investment Coupon Coupon Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3） Accrual of impairment provision
Unit: RMB/CNY
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1 2024
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
79（4）Other debt investments actually written off during the period
Unit: RMB/CNY
Item Write-off amount
Other important debt investment write-offs thereinto
Explanation for write-off of other debt investments:
Change of book balance of loss provision with amount has major changes in the period
□Applicable □Not applicable
Other note：
16. Investment in other equity instrument
Unit: RMB/CNY
Reason for
Accumulat Accumulat designated
Gains Loss ed gains ed losses in fair
recognized recognized recognized recognized Dividend value
in other in other in other in other income measureme
Ending Opening comprehen comprehen comprehen comprehen recognized nt with
Item name
balance balance sive sive sive sive in the changes
income for income for income at income at current recognized
the current the current the end of the end of period in other
period period the current the current comprehen
period period sive
income
Derecognition incurred in the current period
Unit: RMB/CNY
Accumulated gains Accumulated losses
Item name transferred to retained transferred to retained Reason for derecognition
earnings earnings
Itemized disclosure of investments by non-trading equity instruments for the current period
Unit: RMB/CNY
Reason for
Amount of designated in Reason for
other fair value other
Recognized comprehensive measurement comprehensive
Item name dividend Accrued gains Accrued losses income with changes income
income transferred to recognized in transferred to
retained other retained
earnings comprehensive earnings
income
Other note：
8017. Long-term account receivable
(1) Long-term account receivable
Unit: RMB/CNY
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
Unit: RMB/CNY
Phase I Phase II Phase II
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1 2024
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
(3) Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
The important amount of bad debt provisions reversed or recovered in the current period thereinto:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
81Other note：
(4)Long-term receivables actually written off in the current period
Unit: RMB/CNY
Item Write-off amount
Important long-term accounts receivable write-off status thereinto:
Unit: RMB/CNY
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Explanation of write-off of long-term receivables:
18. Long-term equity investment
Unit: RMB/CNY
Changes in the period (+ -)
Impair Cash Ending
ment Invest Other Oth divide Accrua balance Begin ment Ending provisi of
Invested ning Additi Capit comprehe er nd or l of
on gains
balance(
onal al nsive equi profit impair Oth impairenterprise balanc Book
begin- recogn
e invest reduct income ty annou ment er
ment
ized value) year ment ion adjustme chan nced provisi provisi
balance under nt ge to on on
equity
issued
I. Joint venture
Putian
Kaipu
Technolog 30000 30000.0
0.00
y .00 0
Partnershi
p( LP)
3000030000.0
Subtotal 0.00.000
II. Associated enterprise
Subtotal
3000030000.0
Total 0.00.000
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable □Not applicable
82The recoverable amount is determined by the present value of the projected future cash flows
□Applicable □Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
Other note
19. Other non-current financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Other note：
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable □Not applicable
(2) Investment real estate measured at fair value
□Applicable □Not applicable
(3) Converted to investment real estate and measured at fair value
Unit: RMB/CNY
Accounting Impact on other
Reason for Approval Impact on
Item accounts before Amount comprehensive
conversion procedures profit and loss
conversion income
（4）Investment real estate without property rights certificate
Unit: RMB/CNY
Reasons for failing to complete the
Item Book value
property rights certificate
Other note:
8321.Fixed assets
Unit: RMB/CNY
Item Ending balance Opening balance
Fixed assets 2229476.84 2288610.10
Total 2229476.84 2288610.10
（1） Fixed assets
Unit: RMB/CNY
Electronic
Houses and Machinery Means of
Item equipment and Total
buildings equipment transportation
others
I. Original book
value:
1.Opening balance 2959824.00 1310846.99 958593.21 254674.84 5483939.04
2.Current
10619.4728174.5238793.99
increased
(1)Purchase 10619.47 28174.52 38793.99
(2)Construction in
progress transfer-
in
(3)The increase in
business
combination
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 2959824.00 1321466.46 958593.21 282849.36 5522733.03
II. Accumulated
depreciation
1.Opening balance 998940.60 452513.99 862386.24 151882.36 2465723.19
2.Current
increased
(1)Accrual 66596.04 11868.39 19462.82 97927.25
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 1065536.64 464382.38 862386.24 171345.18 2563650.44
III. Impairment
provision
841.Opening balance 729605.75 729605.75
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 729605.75 729605.75
IV. Book value
1.Ending book
1894287.36127478.3396206.97111504.182229476.84
value
2.Opening book
1960883.40128727.2596206.97102792.482288610.10
value
(2) Fixed assets temporary idle
Unit: RMB/CNY
Original book Accumulated Impairment
Item Book value Note
value depreciation provision
The lithium battery
equipment stored
Machinery
1044247.81 314642.06 729605.75 in the Guangshui
equipment
Jiaxu factory is in
an idle state
(3) Fixed assets leasing-out by operational lease
Unit: RMB/CNY
Item Ending book value
(4) Fixed assets without property rights certificate
Unit: RMB/CNY
Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden 7-
20F with original value of 2959824.00
Yuan. The property purchasing refers to
the indemnificatory housing for
enterprise talent buying from Shenzhen
Housing and Construction Bureau of
Six properties in Lianxin Garden 1894287.36 Luohu District. According to the
agreement the enterprise shall not
carrying any kind of property trading
with any units or individuals except the
government and the company has no
property certification on the above
mentioned properties.
85Other note
(5) Information of impairment test of fixed assets
□Applicable □Not applicable
（6） liquidation of fixed assets
Unit: RMB/CNY
Item Ending balance Opening balance
Other note：
22. Construction in progress
Unit: RMB/CNY
Item Ending balance Opening balance
（1）Construction in progress
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
（2） Changes in significant construction in progress
Unit: RMB/CNY
includi
Accum
Propor ng: Interes
Fixed ulated
Other tion of interes t
Openi Curren assets amoun
decrea Ending project t capital
ng t transfe Progre t of Source of
Item Budget sed in balanc invest capital ization
balanc increas r-in in ss interes funds
the e ment ized rate of
e ed the t
Period in amoun the
Period capital
budget t of the year
ization
year
(3) Provision for impairment of construction in progress in the current period
Unit: RMB/CNY
Item Opening balance Increase Decrease Ending balance Reason
Other note：
（4） Information of impairment test of construction in progress
□Applicable □Not applicable
86(5) Engineering materials
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other note:
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable □Not applicable
（2） Impairment test of productive biological assets using cost measurement mode
□Applicable □Not applicable
（3） Productive biological assets measured by fair value
□Applicable□Not applicable
24. Oil and gas asset
□Applicable□Not applicable
25. Right-of-use assets
（1） Right-of-use assets
Unit: RMB/CNY
Item Houses and buildings Total
I. Original book value
1.Opening balance 2564145.65 2564145.65
2.Current increased
3.Current decreased
4.Ending balance
II. Accumulated depreciation
1.Opening balance 747875.82 747875.82
2.Current increased 427357.61 427357.61
(1)Accrual 427357.61 427357.61
3.Current decreased
87(1) Disposal
4.Ending balance 1175233.43 1175233.43
III. Impairment provision
1.Opening balance
2.Current increased
(1)Accrual
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending book value 1388912.22 1388912.22
2.Opening book value 1816269.83 1816269.83
（2） Information of impairment test of right-of-use assets
□Applicable □Not applicable
Other note：
26. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Non-patent
Item Land use right Patent Total
technology
I. Original book
value
1.Opening balance
2.Current
increased
(1)Purchase
(2) Internal R & D
(3)The increase in
business
combination
3.Current
decreased
(1) Disposal
4.Ending balance
II. Accumulated
depreciation
1.Opening balance
2.Current
increased
88(1)Accrual
3.Current
decreased
(1) Disposal
4.Ending balance
III. Impairment
provision
1.Opening balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending book
value
2.Opening book
value
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
Unit: RMB/CNY
Reasons for failing to complete the
Item Book value
property rights certificate
（3） Investment real estate without certificate of ownership
Unit: RMB/CNY
Items Book value Reason
Other note
（4） Impairment test situation of intangible assets
□ Applicable √Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
The invested Opening Current increased Current decreased Ending balance
89entity or items balance Resulted by
enterprise Dispose
combination
Total
(2) Goodwill Impairment provision
Unit: RMB/CNY
The invested Opening Current increased Current decreased
Ending balance
entity or items balance Accrual Dispose
Total
(3)Information about the asset group or asset group portfolio to which the goodwill belongs
The composition and basis of
Affiliated business segments Whether it is consistent with
Name the asset group or portfolio to
and basis previous years
which it belongs
Changes in the asset group or portfolio of asset groups
Composition before the Objective facts and basis for
Name Composition after the change
change change
Other note
(4) The specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount by fair value less disposal costs
□Applicable □Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable □Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
(5) Status of completion of performance commitment and corresponding goodwill impairment
When goodwill is formed there is a performance commitment and the reporting period or the previous period in
the reporting period is within the performance commitment period
□Applicable □Not applicable
Other note：
9028. Long-term expenses to be apportioned
Unit: RMB/CNY
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Other note：
29. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB/CNY
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
Asset impairment
18935907.204733976.8019586893.464896723.38
provision
Lease Liabilities 1447179.02 361794.76 1866033.17 466508.30
Total 20383086.22 5095771.56 21452926.63 5363231.68
(2) Deferred income tax liabilities without offset
Unit: RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Right to use assets 1388912.22 347228.06 1816269.83 454067.46
Total 1388912.22 347228.06 1816269.83 454067.46
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
347228.064748543.50454067.464909164.22
asset
Deferred income tax
347228.06454067.46
liabilities
(4) Details of deferred income tax assets without recognized
Unit: RMB/CNY
Item Ending balance Opening balance
Deductable temporary difference 7255560.04 7255560.04
Deductable loss 2346162.39 2346162.39
Total 9601722.43 9601722.43
91(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Year Ending amount Opening amount Note
2024 1144129.87 1144129.87 Deductable loss in 2019
2025 501170.19 501170.19 Deductable loss in 2020
2026 303928.96 303928.96 Deductable loss in 2021
2027 391287.51 391287.51 Deductable loss in 2022
2028 5645.86 5645.86 Deductable loss in 2023
Total1 2346162.39 2346162.39
Other note
30. Other non-current assets
Unit: RMB/CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance
payment for 400000.00 400000.00
house
Total 400000.00 400000.00
Other note：
31. Assets with restricted ownership or right to use
Unit: RMB/CNY
End of period Beginning of period
Item Restricted Restricted Book Restricted Book Restricted
Book value circumstan Book value circumstan
balance type balance type
ce ce
Litigation Litigation
Monetary
566435.02 566435.02 Other frozen frozen
funds
funds funds
For the For the
talent talent
housing housing
purchased purchased
at a low at a low
price price
Shenzhen Shenzhen
China China
Fixed 2959824.0 1894287.3 cannot 2959824.0 1960883.4 cannot
Other Other
assets 0 6 apply for a 0 0 apply for a
certificate certificate
and the and the
disposal disposal
can only be can only be
repurchase repurchase
d by the d by the
governmen governmen
t t
3526259.02460722.32959824.01960883.4
Total
2800
Other note：
9232. Short-term loans
(1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
Explanation on short-term loans category:
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end including the followed significant amount:
Unit: RMB/CNY /
Borrower Ending balance Lending rate Overdue time Overdue rate
Other note:
33. Trading financial liability
Unit: RMB/CNY
Item Ending balance Opening balance
Including:
Including:
Other note:
34. Derivative financial liability
Unit: RMB/CNY
Item Ending balance Opening balance
Other note:
35. Note payable
Unit: RMB/CNY
Category Ending balance Opening balance
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
Unit: RMB/CNY
Item Ending balance Opening balance
93Within one year(one year included) 4649649.09 5583501.96
1-2 years (2 years included) 83999.55
2-3 years (3 years included) 1158.00
Over 3 years 545005.51
Total 4649649.09 6213665.02
(2) Important account payable with account age over one year
Unit: RMB/CNY
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Other note:
37.Other account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account payable 33107549.28 39034314.13
Total 33107549.28 39034314.13
(1) Interest payable
Unit: RMB/CNY
Item Ending balance Opening balance
Important overdue interest
Unit: RMB/CNY
Unit Overdue amount Overdue reason
Other note:
(2) Dividend Payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other explanation:including dividends payable with over one year age and disclosure un-payment reasons
（3）Other account payable
1) By nature
Unit: RMB/CNY
94Item Ending balance Opening balance
Custodian and common benefit debts 24807507.61 25907507.61
Warranty and guarantee money 1491940.00 1501940.00
Intercourse funds 6560680.00 9578367.65
Payment 1327373.90
Collection and payment 686076.86
Other 247421.67 33048.11
Total 33107549.28 39034314.13
2) Significant other payable with over one year age
Unit: RMB/CNY
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Custodian and common benefit debts 24807507.61 Annual settlement offset
Shenzhen Guocheng Energy Investment
6500000.00 Intercourse funds
Development Co. Ltd.Total 31307507.61
Other note:
38. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
Item Ending balance Opening balance
(2) Account received in advance with over one year book age
Unit: RMB/CNY
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Other note:
39. Contractual liability
Unit: RMB/CNY
Item Ending balance Opening balance
Receipt of goods in advance 527792.26 633114.64
Total 527792.26 633114.64
Contractual liability in advance with over one year book age
Unit: RMB/CNY
Reasons for non-reimbursement or carry-
Item Ending balance
forward
95Book value has major changes in the period and causes
Unit: RMB/CNY
Item Amount changes Reason for change
40. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
1149151.814071306.304188364.681032093.43
compensation
II. Post-employment
benefit-Defined 387042.41 387042.41
contribution plan
Total 1149151.81 4458348.71 4575407.09 1032093.43
(2) Short-term compensation
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages bonus
1143512.593684132.653801003.561026641.68
allowances and subsidy
3. Social insurance 143619.02 143619.02
Including: Medical
121609.84121609.84
insurance
Work injury insurance 8497.85 8497.85
Maternity insurance 13511.33 13511.33
4. Housing
209691.60209691.60
accumulation fund
5. Labor union
expenditure and
5639.2233863.0334050.505451.75
personnel education
expense
Total 1149151.81 4071306.30 4188364.68 1032093.43
(3) Defined contribution plan
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
369991.47369991.47
insurance
2. Unemployment
17050.9417050.94
insurance
Total 387042.41 387042.41
Other note:
9641. Taxes payable
Unit: RMB/CNY
Item Ending balance Opening balance
Value added tax 87394.86 6575136.32
Enterprise income tax 709933.98 3833579.07
Individual income tax 39608.25 71356.63
City maintenance & construction tax 12447.81 446567.07
Stamp tax 25769.67 52178.40
Educational surcharge 8853.82 318938.97
Total 884008.39 11297756.46
Other note:
42. Liability held for sale
Unit: RMB/CNY
Item Ending balance Opening balance
Other note:
43. Non-current liabilities due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
Lease liabilities due within one year 873605.52 847403.05
Total 873605.52 847403.05
Other note:
44. Other current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
VAT received in advance 68612.99 82304.90
Total 68612.99 82304.90
Changes of short-term bond payable:
Unit: RMB/CNY
Accru
Premi
Issuin Openi al Endin Whet
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total
Other note:
9745. Long-term loans
(1)Category
Unit: RMB/CNY
Item Ending balance Opening balance
Explanation on category of long-term loans:
Other note: including interest rate section
46. Bonds payable
(1) Bonds payable
Unit: RMB/CNY
Item Ending balance Opening balance
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
Accru
Premi
Issuin Openi al Endin Whet
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total —— ——
(3) Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify as financial liability
Outstanding other financial instruments as preferred stock and perpetual bonds at period-end
Changes of the outstanding financial instruments as preferred stock and perpetual bonds at period-end
Unit: RMB/CNY
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Basis for financial liability classification for other financial instrument
Other note:
47. Lease liability
Unit: RMB/CNY
98Item Ending balance Opening balance
Lease payment amount 1481384.40 1925673.72
Including：Within 1 year 905166.15 891837.48
1-2 years 576218.25 918592.59
2-3 years 115243.65
Unrecognized financing charges -34205.38 -59640.55
Including：Within 1 year -31560.63 -44434.43
1-2 years -2644.75 -18290.17
2-3 years 3084.05
Reclassified to lease liabilities due within
-873605.52-847403.05
one year
Total 573573.50 1018630.12
Other note:
48. Long-term account payable
Unit: RMB/CNY
Item Ending balance Opening balance
(1) Nature of long-term account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other note:
(2) Special payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
49. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Scheme assets:
Unit: RMB/CNY
Item Current period incurred Prior period incurred
99Net liability (assets) of the defined benefit plans
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Content of defined benefit plans and relevant risks impact on future cash flow of the Company as well as times
and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other note:
50. Accrual liability
Unit: RMB/CNY
Item Ending balance Opening balance Causes
Other explanation including relevant important assumptions and estimation:
51. Deferred income
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
52. Other non-current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
Other note:
53. Share capital
Unit: RMB/CNY
Changes in the period (+ -)
Opening Shares Ending
balance New shares transferred Bonus share Other Subtotal balance
issued from capital
reserve
689184933.689184933.
Total shares
0000
Other note:
10054. Other equity instrument
(1) Outstanding other financial instruments as preferred stock and perpetual bonds at period-end
(2) Changes of the outstanding other financial instruments as preferred stock and perpetual bonds at
period-end
Unit: RMB/CNY
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Changes of other equity instrument change reasons and relevant accounting treatment basis:
Other note:
55. Capital public reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium(Share
151720152.51151720152.51
capital premium)
Other capital public
627834297.85627834297.85
reserve
Including: Debt
482580588.23482580588.23
restructuring income
Other 145253709.62 145253709.62
Total 779554450.36 779554450.36
Other note: including changes and reasons for changes
56. Inventory shares
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Other note: including changes and reasons for changes
57. Other comprehensive income
Unit: RMB/CNY
Current period incurred
Opening
Item Account Less: Less: Belong to Belong to
Ending
balance Less: before written in written in parent minority balance
Income tax
income tax other other company after shareholders
101in the period comprehen comprehen expense tax after tax
sive sive
income in income in
previous previous
period and period and
carried carried
forward to forward to
gains and retained
losses in earnings in
current current
period period
Other note: including the active part of the hedging gains/losses of cash flow transfer to initial recognition
adjustment for the arbitraged items
58. Reasonable reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Other note: including changes and reasons for changes
59. Surplus public reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
32673227.0132673227.01
reserves
Total 32673227.01 32673227.01
Explanation: including changes and reasons for changes
60. Retained profit
Unit: RMB/CNY
Item Current period Prior period
Retained profit at period-end before
-1192651364.21-1210553312.45
adjustment
Retained profit at period-begin after
-1192651364.21-1210553312.45
adjustment
Add: net profit attributable to
shareholders of parent company for this 5717642.69 4862298.90
year
Retained profit at period-end -1186933721.52 -1205691013.55
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations
retained profit at period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
10261. Operation revenue and operation cost
Unit: RMB/CNY
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 211965555.07 199846203.64 290765045.12 277274706.74
Other business 1534042.18 1148825.88 2234117.38 1209446.00
Total 213499597.25 200995029.52 292999162.50 278484152.74
Breakdown of operating income and operating costs:
Unit: RMB/CNY
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business 21349959 20099502 21349959 20099502
type 7.25 9.52 7.25 9.52
Including
：
Jewelry 21138757 199281641. 21138757 199281641.and gold 7.70 45 7.70 45
Bicycles
electric
vehicles
2112019.52112019.5
lithium 1713388.07 1713388.07
55
battery
materials
and others
Classificati
on by
business
area
Including:
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
Classificati
on by
contract
duration
103Including:
Classificati
on by sales
channel
Including:
21349959200995022134995920099502
Total
7.259.527.259.52
Information related to performance obligations:
The types of
The nature of The expected quality
The time to Whether it is
the goods that refunds to assurance
fulfill the Important the main
Item the company customers provided by the
performance payment terms responsible
promises to borne by the company and
obligation person
transfer company related
obligations
Other note:
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been
fulfilled or have not been fulfilled at the end of the period was 0.00 Yuan including 0.00 Yuan is expected to be
recognized as revenue in subsequent years 0.00 Yuan is expected to be recognized as revenue in subsequent
years 0.00 Yuan is expected to be recognized as revenue in subsequent years. Other explanation:
Significant contract changes or significant transaction price adjustments
Unit: RMB/CNY
Item Accounting treatment method The impacted amount on revenue
Other note:
62. Tax and surcharge
Unit: RMB/CNY
Item Current period incurred Prior period incurred
City maintenance & construction tax 30933.56 2712.44
Educational surcharge 22089.18 1937.46
Stamp tax 98479.61 125047.84
Total 151502.35 129697.74
Other note:
63. Administrative expenses
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Employee remuneration 2813909.20 2956105.62
Daily administrative expenses 1114549.51 1174547.18
104Total 3928458.71 4130652.80
Other note:
64. Sales expenses
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Employee remuneration 1041048.34 656050.37
Marketing promotion fees 22377.70 1318316.83
Online marketing fee 64489.30 164884.42
Other 650478.14 382962.39
Total 1778393.48 2522214.01
Other note:
65. R&D expenses
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Employee compensation and benefits 419172.22 291150.18
Other 35041.40 45820.72
Total 454213.62 336970.90
Other note:
66. Finance expenses
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Interest expenses 25397.71
Including：Financing expenses
25397.71
recognized by lease liabilities
Interest income -61836.44 -70100.25
Commission charge etc. 35279.23 11769.30
Total -1159.50 -58330.95
Other note:
67. Other income
Unit: RMB/CNY
Sources Current period incurred Prior period incurred
Personal tax withholding fee 2092.35
68. Net exposure hedge gains
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Other note:
10569. Income from change of fair value
Unit: RMB/CNY
Sources Current period incurred Prior period incurred
Other note:
70. Investment income
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Other note:
71. Loss of credit impairment
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Bad debt loss of other account receivable 442497.22 334376.92
Bad debt losses of other accounts
-187577.79-6087.13
receivable
Total 254919.43 328289.79
Other note:
72. Impairment loss on assets
Unit: RMB/CNY
Item Current period incurred Prior period incurred
I. Loss of inventory falling price and loss
8123.50
of contract performance cost impairment
Total 8123.50
Other note:
73. Income from assets disposal
Unit: RMB/CNY
Sources Current period incurred Prior period incurred
74. Non-operating income
Unit: RMB/CNY
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Other 1240262.87 1253150.81
106Total 1240262.87 1253150.81
Other note:
75. Non-operating expense
Unit: RMB/CNY
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Other 60128.00 1462822.69
Total 60128.00 1462822.69
Other note
76. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Current income tax expense 1942341.89 1720082.71
Deferred income tax expense 185966.10 -82627.15
Total 2128307.99 1637455.56
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item Current period incurred
Total profit 7636336.87
Income tax measured by statutory/applicable tax rate 1909084.22
The impact of applying different tax rates to subsidiaries -48309.47
Impact of adjusting the income tax of prior period -193732.87
The impact of non-taxable income
Impact on cost expenses and losses that unable to deducted
The impact of deductible losses on the use of deferred income 517277.91
tax assets not recognized in prior period
The impact of deductible temporary differences or deductible
losses on deferred income tax assets not recognized in the
Period
Additional deductible expenses under the tax code -56011.80
Income tax expense 2128307.99
Other note:
77. Other comprehensive income
Refer to the Note
10778.Items of Cash flow statement
（1）Cash related to operating activities
Other cash received from business operation
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Interest rent utilities etc. 1083672.56 1149209.40
Deposits and guarantees received 60222.00
Government subsidy and individual tax
2217.90
handling fee refund
Other 11847669.53 12116466.37
Total 12931342.09 13328115.67
Explanation on other cash received in relation to operation activities:
Other cash paid in relation to operation activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Payment period expenses operating
3643342.794947274.36
expenses and mutual debt etc
Judicial freeze 566435.02 402449.98
Total 4209777.81 5349724.34
Explanation on other cash paid in relation to operation activities:
（2）Cash related to Investment activities
Cash receivable related to other Investment activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Receivable for important cash related to investment activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Explanation on other cash received from investment activities:
Cash paid related with investment activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Payable for important cash related to investment activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Explanation on cash paid related with investment activities
108(3)Cash related to Financing activities
Other cash received in relation to financing activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Received the performance commitment
payment from the controlling
12098051.76
shareholder Received the private
placement deposit
Total 12098051.76
Explanation on other cash received in relation to financing activities:
Other cash paid related with financing activities
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Explanation on other cash paid related with financing activities:
Changes in various liabilities arising from fund-raising activities
□Applicable □Not applicable
(4) Statement of cash flows on a net basis
Relevant factual The basis for the use of net
Item Financial impact
circumstances presentation
(5) Major activities and financial impacts that do not involve cash receipts and expenditures in the
current period but affect the financial position of the enterprise or may affect the cash flow of the
enterprise in the future
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information Current amount Amount of the previous period
1．Net profit adjusted to cash flow of
operation activities:
Net profit 5508028.88 5937059.96
Add: Assets impairment provision 263042.93 -328289.79
Depreciation of fixed assets
consumption of oil assets and 97927.25 101255.23
depreciation of productive biology assets
Depreciation of right-of-use assets 427357.61 173936.71
Amortization of intangible assets
Amortization of long-term deferred
expenses
Loss from disposal of fixed assets
109intangible assets and other long-term
assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain
12298.94
is listed with “-”)
Gain/loss of fair value changes (gain is
listed with “-”)Financial expenses (gain is listed with “-
25397.71-58330.95
”)
Investment loss (gain is listed with “-”)
Decrease of deferred income tax asset
160620.72
(increase is listed with “-”)
Increase of deferred income tax liability
(decrease is listed with “-”)
Decrease of inventory (increase is listed
-6197581.61-142168042.14
with “-”)
Decrease of operating receivable
-32438650.26101511254.79
accounts (increase is listed with “-”)
Increase of operating payable accounts
-18140601.52-388000.06
(decrease is listed with “-”)
Other -1034350.53 -157516.35
Net cash flow arising from operating
-51328808.82-35364373.66
activities
2. Material investment and financing not
involved in cash flow
Conversion of debt into capital
Switching Company bonds due within
one year
Financing lease of fixed assets
3. Net change of cash and cash
equivalents:
Balance of cash at period end 24599123.35 15558495.69
Less: Balance of cash equivalent at
54148674.4050922869.35
year-begin
Add: Balance at year-end of cash
equivalents
Less: Balance at year-begin of cash
equivalents
Net increased amount of cash and cash
-29549551.05-35364373.66
equivalent
(2) Net cash paid for obtaining subsidiary in the Period
Unit: RMB/CNY
Amount
Including:
Including:
Including:
Other note:
（3）Net cash received by disposing subsidiary in the Period
Unit: RMB/CNY
Amount
Including:
Including:
Including:
110Other note:
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item Ending balance Opening balance
I. Cash 24599123.35 54148674.40
Including: Cash on hand 33597.75 13955.25
Bank deposit available for payment at
24485123.5254134719.15
any time
Other monetary funds that may be paid
80402.08
for at any time
III. Balance of cash and cash equivalents
24599123.3554148674.40
at the period -end
Including: the use of restricted cash and
cash equivalents by the parent company
or subsidiaries within the Group
(5) Situations where the scope of use is limited but still classified as cash and cash equivalents
Unit: RMB/CNY
Reason for still being
Amount of the previous
Item Amount of the current period classified as cash and cash
period
equivalents
( 6) Monetary funds that do not belong to cash and cash equivalents
Unit: RMB/CNY
Amount of the previous Reason for not belonging to
Item Amount of the current period
period cash and cash equivalents
Other monetary funds 566435.02 4179071.81 Litigation frozen funds
Total 566435.02 4179071.81
Other note:
(7) Description of other major activities
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB/CNY
Ending foreign currency Ending RMB balance
Item Convert rate
balance converted
Monetary fund
111Including: USD
EURO
HKD
Account receivable
Including: USD
EURO
HKD
Long-term loans
Including: USD
EURO
HKD
Other note:
(2) Explanation on foreign operational entity including as for the major foreign operational entity
disclosed main operation place book-keeping currency and basis for selection; if the book-keeping
currency changed explain reasons
□Applicable □Not applicable
82. Leasing
(1) The Company acts as the lessee
□Applicable □Not applicable
(2) The Company acts as the lessor
Operating lease as a lessor
□Applicable □Not applicable
Unit: RMB/CNY
Thereinto: income related to variable
Item Rental income lease payments that are not included in
lease receipts
lease of houses 24153.81
Total 24153.81
Financial lease as a lessor
□Applicable □Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable □Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
(3) Recognition of financial lease sales gains and losses as a producer or distributor
□Applicable □Not applicable
11283. Data resources
84.Other
VIII. R&D expenditure
Unit: RMB/CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee remuneration and benefits 419172.22 291150.18
Other 35041.40 45820.72
Total 454213.62 336970.90
Thereinto: expensed R&D expenditure 454213.62 336970.90
1. R&D projects that meet the conditions for capitalization
Unit: RMB/CNY
Amount increased in the current period Amount decreased in the current period
Internal Transferred
Opening Recognized Ending
Project developme to profit or
balance as nt Others loss for the balance
intangible
expenditure current
assets
s period
Total
Significant capitalized R&D projects
Expected way of The point at which The specific basis
Estimated
Project R&D progress generating capitalization for starting
completion time
economic benefits begins capitalization
Provision for impairment of development expenditure
Unit: RMB/CNY
Increase in the Decrease in the Impairment test
Item Opening balance Ending balance
current period current period situation
2.Important outsourcing projects under research
Expected way of generating economic Criteria and specific basis for
Name of project
benefits determining capitalization or expensing
Other note:
IX. Changes of consolidation scope
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
Unit: RMB/CNY
Standard to Income of Net profit
Acquired
Time point Cost of Ratio of determine acquiree of acquiree
way Equity Purchasing
Acquiree for equity equity equity the from from
obtained date
obtained obtained obtained purchasing purchasing purchasing
way
date date to date to
113period-end period-end
Other note:
(2) Combination cost and goodwill
Unit: RMB/CNY
Consolidation cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost
Less: shares of fair value of identifiable net assets acquired
The amount by which the goodwill/cost of consolidation is less
than the share of fair value of identifiable net assets acquired
Determination method for fair value of the combination cost：
Contingent consideration and changes:
Main reasons for large goodwill resulted:
Other note:
(3) Identifiable assets and liability on purchasing date under the acquiree
Unit: RMB/CNY
Fair value on purchasing date Book value on purchasing date
Assets:
Monetary fund
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Deferred income tax liabilities
Net assets
Less: Minority interests
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other note:
114(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of
obtained control rights in the Period or not
□Yes□No
(5) On purchasing date or period-end of the combination combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other Note:
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
Unit: RMB/CNY
Income of Net profit
the of the
Income of Net profit
combined combined
Basis of Standard to the of the
Equity ratio party from party from
combined determine combined combined
Combined obtained in Combinatio period- period-
under the the party party
party combinatio n date begin of begin of
same combinatio during the during the
n combinatio combinatio
control n date comparison comparison
n to the n to the
period period
combinatio combinatio
n date n date
Other note:
(2) Combination cost
Unit: RMB/CNY
Consolidation cost
--Cash
-- Book value of non-cash assets
- Book value of debts issued or assumed
-- The face value of the equity securities issued
--Contingent consideration
Explanation on contingent consideration and its changes:
Other note:
(3) Book value of the assets and liability of the combined party on combination date
Unit: RMB/CNY
Consolidation date End of last period
Assets:
Monetary fund
Account receivable
Inventory
115Fixed assets
Intangible assets
Liability:
Loan
Account payable
Net assets
Less: Minority interests
Net assets acquired
Contingent liability of the combined party bear during combination:
Other note:
3. Counter purchase
Basic transaction information basis of counter purchase whether making up business due to the assets and
liability reserved by listed company and basis determination of combination cost amount and calculation on
adjusted equity by equity transaction:
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□Yes □No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□Yes□No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established subsidiary liquidated etc.)And
relevant information:
In the current period four new wholly-owned subsidiaries are established including Dongguan Xinsen Jewelry.-with a registered capital of 5 million yuan Shenzhen Yunyouxuan Jewelry Co. Ltd..-with a registered capital
of 15 million yuanHangzhou Huabao Digital Culture Co Ltd.-with a registered capital of 5 million yuan Tibet
Jinyaya Trading Co. Ltd. .-with a registered capital of 2 million yuanand Shenzhen China International.-with a
registered capital of HKD 10000 yuan.
6.Other
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Unit: RMB/ HKD
116Main
Registered Registered Business Share-holding ratio Acquired
Subsidiary operation
capital place nature Directly Indirectly way place
Shenzhen Sales of
Xinsen 200000000. Jewelry
Shenzhen Shenzhen 100.00% Investment
Jewelry Gold 00 diamonds
Co. Ltd and gold
Shenzhen
Jewelry
Xinsen
diamonds
Precision 5000000.00 Shenzhen Shenzhen 100.00% Investment
gold
Manufacturin
processing
g Co. Ltd.Shenzhen Distribution
Emmelle of bicycles
5000000.00 Shenzhen Shenzhen 70.00% Investment
Industrial and spare
Co. Ltd. parts
Shenzhen
Software and
Emmelle
information
Cloud 2000000.00 Shenzhen Shenzhen 49.00% Investment
technology
Technology
service sales
Co. Ltd.Fujian Sales of
Huaxinbao Jewelry
5000000.00 Fujian Putian Fujian Putian 100.00% Investment
Jewelry Co. diamonds
Ltd. and gold
Shenzhen
Sales of
Huabao
Jewelry
Zhenxuan 5000000.00 Shenzhen Shenzhen 100.00% Investment
diamonds
Jewelry Co.and gold
Ltd.Hainan Import and
Industry Co. 5000000.00 Haikou Haikou export trade 100.00% Investment
Ltd. industry
Dongguan Jewelry
Xinsen diamonds
5000000.00 Dongguan Dongguan 100.00% Investment
Jewelry Co. gold
Ltd. processing
Shenzhen
Sales of
Yunyouxuan
15000000.0 Jewelry
Jewelry Shenzhen Shenzhen 35.00% 0.20% Investment
0 diamonds
Technology
and gold
Co. Ltd.Hangzhou
Sales of
Huabaohui
Jewelry
Digital 5000000.00 Hangzhou Hangzhou 100.00% Investment
diamonds
Culture Co
and gold
Ltd
Tibet Jinyaya Sales of
Jewelry Jewelry
2000000.00 Lhasa Lhasa 100.00% Investment
Trading Co. diamonds
Ltd. and gold
Shenzhen
Sales of
China
HONGKAN HONGKAN Jewelry
Internation 10000.00 100.00% Investment
G G diamonds
al Co.and gold
Ltd.Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
117Basis on determining to be an agent or consignor:
Other note:
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
Gains/losses Dividend announced to
Share-holding ratio of Ending equity of
Subsidiary attributable to minority distribute for minority
minority minority
in the Period in the Period
Shenzhen Emmelle
30.00%-212650.68427257.35
Industrial Co. Ltd.Shenzhen Yunyouxuan
Jewelry Technology 65.00% 3036.87 9753036.87
Co. Ltd.Explanation on share-holding ratio of minority different from ratio of voting right:
Other note:
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Ending balance Opening balance
Subsid Curren Non- Curren Non-Non- Total Non- Total
iary Curren Total t current Curren Total t current current liabiliti current liabiliti
t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
Shenz
hen
Emmel
790673179797982418241968973727976393169316
le 0 0
001.06.53180.59539.10539.10931.74.87659.61963.25963.25
Industr
ial Co.Ltd.Shenz
hen
Yunyo
uxuan 15008 15008
Jewelr 3828 3828
500.20500.20000000
y .12 .12
Techn 2 2
ology
Co.Ltd.Unit: RMB/CNY
Current period incurred Prior period incurred
Total Cash flow Total Cash flow
Subsidiary Operation comprehen from Operation comprehen from
Net profit Net profit
revenue sive operation revenue sive operation
income activity income activity
Shenzhen
Emmelle - - - 2263649.5 5086365.3
918458.55359924.99359924.99
Industrial 709054.87 709054.87 760606.22 7 0
Co. Ltd.Shenzhen 2434911.5 -
4672.104672.100000
Yunyouxua 0 9991499.7
118n Jewelry 8
Technology
Co. Ltd.Other note:
(4) Major restriction on using corporate assets and liquidate corporate debts
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Other note:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Unit: RMB/CNY
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Purchase cost/total disposal consideration
Less: Subsidiary's share of net assets calculated based on the
proportion of acquired/disposed equity
Difference
Including: Adjust capital public reserve
Adjust surplus public reserve
Adjusted retained profit
Other note:
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or
Main operation Registered Share-holding ratio Accounting
associated Business nature
place place Directly Indirectly treatment enterprise
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence or without major influence but with over 20%
(20% included) voting rights hold:
(2) Main financial information of the important joint venture
Unit: RMB/CNY
Ending balance/Current period incurred Opening balance/Prior period incurred
119Current assets
Including: cash and cash equivalent
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Shareholders' equity attributable to the
parent company
Share of net assets calculated by
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in joint
venture
Fair value of the equity investment of
joint ventures with public offers
concerned
Operation revenue
Financial expenses
Income tax expense
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from joint venture in
the year
Other note:
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current period incurred Opening balance/Prior period incurred
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Equity attributable to shareholder of
parent company
Share of net assets measured by
shareholding
120Adjustment
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in
associated enterprise
Fair value of the equity investment of
associated enterprise with public offers
concerned
Operation revenue
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from associated
enterprise in the year
Other note:
(4) Financial summary for un-important joint venture or associated enterprise
Unit: RMB/CNY
Ending balance/Current period incurred Opening balance/Prior period incurred
Joint venture：
Total numbers measured by share-
holding ratio
Associated enterprise：
Total numbers measured by share-
holding ratio
Other note:
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed recognized in the Period (or Cumulative un-confirmed
enterprise losses net profit enjoyed in the losses at period-end
Period)
Other note:
121(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
4.Co-runs operation
Main operation Share-holding ratio/share enjoyed
Name Registered place Business nature
place Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity basis of the co-runs classification
Other note:
5. Equity in structuring entity that excluding in the consolidated financial statement
6.Other
XI. Government subsidy
1. Government subsidies recognized according to the receivable amount at the end of the reporting period
□Applicable □Not applicable
The reason for not receiving the estimated amount of government subsidies at the expected point in time
□Applicable □Not applicable
2. Liabilities involving government subsidies
□Applicable □Not applicable
3. Government subsidies included in the current profit and loss
□Applicable □Not applicable
XII. Risks Related to Financial Instruments
1.Risks arising from financial instruments
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable □Not applicable
122(2) The Company conducts qualified hedging business and applies hedge accounting
Unit: RMB/CNY
The cumulative fair
value hedge adjustment
The carrying amount Sources of hedge The impact of hedge
of the hedged items
associated with the effectiveness and accounting on the
Item included in the
hedged item and the hedge ineffectiveness Company's financial
recognized carrying
hedging instrument part report
amount of the hedged
items
Type of hedging risk
Hedging category
Other note:
（3） The Company conducts hedging business for risk management and expects to achieve risk
management objective but does not apply hedge accounting
□Applicable □Not applicable
3. Financial assets
(1) Classification of transfer methods
□Applicable □Not applicable
(2) Financial assets that have been derecognized as a result of a transfer
□Applicable □Not applicable
(3) Financial assets of continued involvement in asset transfer
□Applicable □Not applicable
Other note:
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured
--------
by fair value
II. Non-sustaining
--------
measured by fair value
1232. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-
order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value
measure sustaining and non-persistent on third-order
6. Sustaining items measured by fair value as for the conversion between at all levels reasons for
conversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
XIV. Related party and related transactions
1. Parent company
Share-holding
ratio on the Voting right ratio
Parent company Registered place Business nature Registered capital
enterprise for on the enterprise
parent company
Wansheng
General business:
Industrial
investment in
Holdings Shenzhen 500 million Yuan 20.00% 20.00%
establishment of
(Shenzhen) Co.industrial
Ltd.Explanation on parent company of the enterprise
Wansheng Industrial Holdings (Shenzhen) Co. Ltd. was established on May 10 2016 with the business
period is from May 10 2016 to no fixed term the registered capital of the company is 500000000 yuan the
unified social credit code is 91440300MA5DCB5K9A the enterprise type is a limited liability company the
legal representative is Wang Shenghong and the company's registered address is 1311 Beiyuehui Building No.
2115 Cuizhu Road Cuijin Community Cuizhu Street Luohu District Shenzhen.
Ultimate controller of the Company: Wang Shenghong
Other note:
2. Subsidiary of the Enterprise
Found more in Note X
1243. Associated enterprise and joint venture
Found more in Note
Other associated enterprise and joint venture that have related transaction with the Company in the Period or
occurred in previous period
Joint venture or associated enterprise Relationship with the Company
Other note:
4. Other related party
Other related party Relationship with the Company
Enterprise that holds more than 5% of the shares of Shenzhen
Shenzhen Guocheng Energy Investment Development Co. Ltd.China
Other note
Shenzhen China Bicycle purchased the shares of minority stockholders of Shenzhen Xinsen Jewelry Gold Co.Ltd. a subsidiary company. After the purchase Xinsen became a wholly-owned subsidiary of Shenzhen China
Bicycle and the completion date was in early August 2023. According to the Listing Rules for Stocks of
Shenzhen Stock Exchange based on prudent considerations the company determined that Fuzhou Zuanjinsen
and Fuzhou Rongrun were related parties of the company within 12 months after the industrial and commercial
registration for the purchase of the shares of minority shareholders of the holding subsidiary and the related
transactions occurred were related-party transactions.
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
Whether more than
Transaction Current period Approved Prior period
Related party the transaction
content incurred transaction amount incurred
amount
Goods sold/labor service providing
Unit: RMB/CNY
Related party Transaction content Current period incurred Prior period incurred
Explanation on goods purchasing labor service providing and receiving
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
Unit: RMB/CNY
Client/ Entrusting Income from
Yield pricing
contract-out party/ Assets type Starting date Maturity date trusteeship/cont
basis
party contractor ract
Explanation on related trusteeship/contract
125Delegated administration/outsourcing
Unit: RMB/CNY
Pricing basis of Trustee
Client/ Entrusting
trustee fee/outsourcing
contract-out party/ Assets type Starting date Maturity date
fee/outsourcing fee recognized
party contractor
fee in the Period
Explanation on related administration/outsourcing
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
Lease income recognized in Lease income recognized in
Lessee Assets type
the Period prior Period
As a lessee for the Company:
Unit: RMB/CNY
rental cost for
Variable lease
short-term leases
payment not
and low-value Interest expenses
included in the Right-of-use assets
assets leases with Rental paid assumed on lease
measurement of increased
simplified liability
Assets leasing liability (if
Lessor processing (if
type applicable) applicable)
Current Prior Current Prior Current Prior Current Prior Current Prior
period period period period period period period period period period
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d d d d d d d d d d
Explanation on related lease
(4) Related guarantee
As a guarantor for the Company
Unit: RMB/CNY
Guarantee completed
Secured party Amount guarantee Starting date Due date
(Y/N)
As a secured party for the Company
Unit: RMB/CNY
Guarantee completed
Guarantor Amount guarantee Starting date Due date
(Y/N)
Explanation on related guarantee
126(5) Borrowed funds of related party
Unit: RMB/CNY
Related party Borrowed funds Starting date Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
Unit: RMB/CNY
Related party Transaction content Current period incurred Prior period incurred
(7) Remuneration of key manager
Unit: RMB/CNY
Item Current period incurred Prior period incurred
Remuneration of key manager 1037574.77 703586.71
(8) Other related transactions
6. Receivable/payable items of related parties
(1)Receivable item
Unit: RMB/CNY
Ending balance Opening balance
Item Related party Bad debt Book Bad debt
Book balance
provision balance provision
(2) Payable item
Unit: RMB/CNY
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co. 6500000.00 6500000.00
Ltd.
7. Commitments of related party
According to the Cooperation Agreement signed by Shenzhen China Bicycle Company (Holdings) Co.Ltd. with Wansheng Industrial Holdings (Shenzhen) Co. Ltd. (hereinafter referred to as "Wansheng Industrial")
and Shenzhen Guosheng Energy Investment and Development Co. Ltd. (hereinafter referred to as "Guosheng
Energy") on December 14 2020 Wansheng Industrial promised that in the next three years from the next year
after the completion of the non-public issuance of shares and the completion of the adjustment of the board of
127directors and board of supervisors of the listed company by Wansheng Industrial the net profit of the listed
company shall not be less than RMB 30 million yuan 35 million yuan and 40 million yuan that is the
cumulative net profit scale is 105 million yuan. If the cumulative actual net profit of the listed company as of
any year during the performance commitment period does not reach the promised cumulative net profit
Wansheng Industrial shall compensate the listed company in cash within 10 working days after the issuance of
the audit report of the listed company in the year during the performance commitment period. The amount of
compensation payable for the year is calculated as follows: amount of compensation payable for the year =
cumulative committed net profit as of the end of the period minus cumulative realized net profit as of the end of
the period minus cumulative compensation amount (if any).According to the unqualified audit report with the report number of GXS Zi [2024] No.23014760012
issued by Huaxing Certified Public Accountants LLP (special general partnership) on April 19 2024 in 2023
the net profit attributable to the owners of the parent company in Shenzhen China Bicycle was RMB
17901948.24 and the actual completion was lower than the performance commitment by RMB 30000000
and the completion rate of performance commitment was 59.67% which failed to meet the performance
commitment target.According to the performance commitment Wansheng Industrial shall pay the company
RMB 12098051.76 in cash for the 2023 annual performance compensation within ten working days after the
issuance of the 2023 annual audit report of Shenzhen China Bicycle.On April 29 2024 the company received
performance compensation of RMB 12098051.76 from Wansheng Industrial and Wansheng Industrial
fulfilled its performance compensation obligations in 2023 in accordance with the Cooperation Agreement.The
performance commitment for 2024 -2025 is being fulfilled.
8.Other
Nil
XV. Share-based payment
1. General share-based payment
□Applicable□Not applicable
2. Share-based payment settled by equity
□Applicable□Not applicable
3. Share-based payment settled by cash
□Applicable□Not applicable
4. The current shares will pay the fee
□Applicable□Not applicable
1285. Revised and termination on share-based payment
Nil
6.Other
Nil
XVI. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XVII. Events after balance sheet date
1. Important non-adjustment items
Unit: RMB/CNY
Impact on financial status and Reasons on un-able to
Item Content
operation results estimated the impact number
2. Profit distribution
Nil
3. Sales return
Nil
1294. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
Unit: RMB/CNY
Impact items of statement
Correction content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Correction content Approval procedures
adopted
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
Unit: RMB/CNY
Discontinued
operations
Income tax profit
Item Revenue Expenses Total profit Net profit
expenses attributable to
owners of
parent company
Other note:
1306. Segment
(1) Recognition basis and accounting policy for reportable segment
The Company determines its business segments based on its internal organizational structure
management requirements and internal reporting system. The Company's business segments are those that meet
the following conditions at the same time:
(1) The component is capable of generating income and incurring expenses in its daily activities;
(2) Management is able to regularly evaluate the operating results of the component in order to decide on
the allocation of resources to it and evaluate its performance;
(3) Able to obtain accounting information related to the financial position results of operations and cash
flows of the component.The Company determines the reporting segment on the basis of the industry segment.Segment reporting information is disclosed in accordance with the accounting policy and measurement
standards adopted by each segment in reporting to management which are consistent with those at the time of
preparation of the financial report.
(2) Financial information for reportable segment
Unit: RMB/CNY
Bicycle lithium
Item Gold jewelry battery material Offset between segments Total
and others
Main business
211387577.671059967.98211965555.07
income
Main business cost 199281641.45 661336.47 199846203.64
(3)The Company has no reportable segments or unable to disclose total assets and total liability for
reportable segments explain reasons
(4) Other note:
7. Major transaction and events makes influence on investor’s decision
Nil
8.Other
Nil
131XIX. Principle notes of financial statements of parent company
1. Account receivable
（1）Disclosure according to the aging
Unit: RMB/CNY
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 80714761.15 183092316.73
1-6 months 68811760.95 183092316.73
7-12 months 11903000.20 0.00
1-2 years 5574289.81 6441479.72
2-3 years 10762472.02 10762472.02
Over 3 years 2380925.00 2412925.00
3-4 years 1115247.00 1115247.00
4-5 years 917542.00 949542.00
Over 5 years 348136.00 348136.00
Total 99432447.98 202709193.47
（2） According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt 187298 170061 172365 187618 170381 172365
18.84%90.80%9.26%90.81%
provisio 37.03 83.74 3.29 37.03 83.74 3.29
n by
single
Includin
g：
Single
187298170061172365187618170381172365
identific 18.84% 90.80% 9.26% 90.81%
37.0383.743.2937.0383.743.29
ation
Accrual
of bad
debt 807026 212470. 804901 183947 549240. 183398
81.16%0.26%90.74%0.30%
provisio 10.95 05 40.90 356.44 50 115.94
n by
portfolio
Includin
g：
Aging 807026 212470. 804901 183080 549240. 182530
81.16%0.26%90.31%0.30%
portfolio 10.95 05 40.90 166.53 50 926.03
Related
party 867189. 867189.
0.43%
Portfoli 91 91
o
994324172186822137202709175874185121
Total 100.00% 17.32% 100.00% 8.68%
47.9853.7994.19193.4724.24769.23
Bad debt provision accrual on single basis: Single identification
Unit: RMB/CNY
132Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
15937156.89 14343441.20 15937156.89 14343441.20 90.00% difficult to
Technology
recover
Co.Ltd
Suzhou Jiaxin Expected to be
Economic 888757.00 888757.00 888757.00 888757.00 100.00% difficult to
Trade Co. Ltd. recover
Suzhou
Daming Expected to be
Vehicle 649688.00 519750.40 649688.00 519750.40 80.00% difficult to
Industry Co. recover
Ltd.Dongguan
Expected to be
Daxiang New
626734.00 626734.00 594734.00 594734.00 100.00% difficult to
Energy Co.recover
Ltd.Guangdong
Expected to be
Xinlingjia New
348136.00 348136.00 348136.00 348136.00 100.00% difficult to
Energy Co.recover
Ltd.Tianjin Huiju Expected to be
Electric Vehicle 116840.14 116840.14 116840.14 116840.14 100.00% difficult to
Co. Ltd. recover
Expected to be
Other 194525.00 194525.00 194525.00 194525.00 100.00% difficult to
recover
Total 18761837.03 17038183.74 18729837.03 17006183.74
Bad debt provision accrual on portfolio: Aging portfolio
Unit: RMB/CNY
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
1-6 months 68811760.95 48168.23 0.07%
7-12 months 11746000.00 140952.00 1.20%
1-2 years 144850.00 23349.82 16.12%
Total 80702610.95 212470.05
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
Unit: RMB/CNY
Ending balance
Name
Book Balance Bad debt provision Proportion(%)
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□Applicable□Not applicable
133Basis for division of each stage and accrual ratio for bad-debt provision
Explanation of the significant change in the book balance of accounts receivable with loss reserve in the current
period
(3) Bad debt provision accrual collected or reversal in the period
Accrual of bad debt provision in the period:
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Accounts
receivable with
individual 17038183.74 32000.00 17006183.74
provision for
bad debts
Provision for
bad debts based
on a portfolio 549240.50 336770.45 212470.05
of credit risk
characteristics
Total 17587424.24 368770.45 17218653.79
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
(4) Account receivables actually write-off during the reporting period
Unit: RMB/CNY
Item Amount written off
Including major account receivables write-off:
Unit: RMB/CNY
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
(5) The top five accounts receivable and contract assets at the end of the period aggregated according to
debtor
Unit: RMB/CNY
Name of the Ending balance of Ending balance of Ending balance of Proportion to the Ending balance of
134organization accounts contract assets accounts total ending accounts
receivable receivable and balance of receivable bad
contract assets accounts debt provision and
receivable and contract asset
contract assets impairment
provision
Shenzhen
Hualinglong
Jewelry Culture 27427840.85 0.00 27427840.85 27.58% 19199.49
Technology Co.Ltd
Fuzhou Cangshan
District Dingjue 16795047.57 0.00 16795047.57 16.89% 11756.53
Jewelry Company
GuangshuiJiaxu
Energy
15937156.890.0015937156.8916.03%14343441.20
Technology Co.Ltd
Shenzhen
Yunshang Jewelry 13548308.40 0.00 13548308.40 13.63% 9483.82
Co. Ltd
Shenzhen Yuanchi
8258000.000.008258000.008.31%99096.00
Trading Co. Ltd
Total 81966353.71 0.00 81966353.71 82.44% 14482977.04
2. Other account receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Other account receivable 86984000.02 17300576.60
Total 86984000.02 17300576.60
(1) Interest receivable
1) Category
Unit: RMB/CNY
Item Ending balance Opening balance
2) Important overdue interest
Unit: RMB/CNY
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
3) Accrual of bad debt provision
□Applicable □Not applicable
1354） Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note:
5）Interest receivables actually written off in the current period
Unit: RMB/CNY
Item Write-off amount
Important Interest receivables write-off status thereinto:
Unit: RMB/CNY
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Other note
(2) Dividend receivable
1) Category
Unit: RMB/CNY
Item (or the invested entity) Ending balance Opening balance
2) Important dividend receivable with over one year aged
Unit: RMB/CNY
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
1363) Accrual of bad debt provision
□Applicable □Not applicable
4） Bad debt provision accrual collected or reversal in the period
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
Unit: RMB/CNY
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
5） Dividend receivables actually written off in the current period
Unit: RMB/CNY
Item Write-off amount
Important Dividend receivable write-off status thereinto:
Unit: RMB/CNY
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Other note：
（3）Other account receivable
1) By nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Performance compensation 12098051.76
Deposit or margin 9609.80 9609.80
Personal loan of employees 255439.62
Payment for equipment 11400.00 11400.00
Current account 86621672.80 5193843.90
Other 176016.08
137Total 87074138.30 17312905.46
2）By account aging
Unit: RMB/CNY
Aging Ending book balance Opening book balance
Within one year(one year included) 86982765.30 17221532.46
1-2 years 79473.00 79473.00
2-3 years 0.00 0.00
Over 3 years 11900.00 11900.00
3-4 years 0.00 0.00
4-5 years 0.00 0.00
Over 5 years 11900.00 11900.00
Total 87074138.30 17312905.46
3) According to the bad debt provision method classification disclosure
Unit: RMB/CNY
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Includin
g：
Includin
g：
Provision for bad debts is made according to the general model of expected credit losses
Basis for division of each stage and accrual ratio for bad-debt provision
Loss provision changes in current period change in book balance with significant amount
□ Applicable √Not applicable
4) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
Unit: RMB/CNY
Current changes
Opening
Category Collected or Ending balance balance Accrual Write off Other
reversal
Provision for
bad debts based
on a portfolio 12328.86 77809.42 90138.28
of credit risk
characteristics
Total 12328.86 77809.42 90138.28
Important amount of bad debt provision switch-back or collection in the period:
Unit: RMB/CNY
Name of the Amount recovered or Reason for reversal Recovery method The basis and
138organization reversed rationality for
determining the
provision ratio of
original bad debt
provision
5) Other account receivables actually write-off during the reporting period
Unit: RMB/CNY
Item Amount written off
Including major other account receivables write-off:
Unit: RMB/CNY
Amount cause by
Amount written related
Enterprise Other Nature Causes Procedure
off transactions or not
(Y/N)
Other Explanation on account receivable write-off:
6) Top 5 other account receivable collected by arrears party at ending balance
Unit: RMB/CNY
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Shenzhen Xinsen
Within one
Jewelry Gold Current account
86531672.80 year(one year 99.38%
Supply Chain Co. of subsidiary
included)
Ltd
Within one
Employee loans Personal loans 200000.00 year(one year 0.23% 29200.00
included)
Guangdong
1-2 years (two
Shenzhen Luohu Other 79473.00 0.09% 25518.78
year included)
Court
Within one
Hubei Guangshui
Current account 52816.00 year(one year 0.06% 7711.14
Court
included)
Within one
Fujian Huaxinbao
Current account 50000.00 year(one year 0.06%
Jewelry Co. Ltd.included)
Total 86913961.80 99.82& 62429.92
7） Reported in other receivables due to centralized management of funds
Other note：
3. Long-term equity investment
Unit: RMB/CNY
Item Ending balance Opening balance
139Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
125760379.73125760379.73120510379.73120510379.73
subsidiary
Total 125760379.73 125760379.73 120510379.73 120510379.73
(1) Investment for subsidiary
Unit: RMB/CNY
Opening Changes in the period (+ -)
Ending
The Opening balance of Ending
Accrual of balance of invested balance(Bo the Additional Capital balance(Bo impairment
entity ok value) impairment impairment Other investment reduction ok value)
provision provision
provision
Shenzhen
Emmelle
10379.7310379.73
Industrial
Co. Ltd.Shenzhen
Xinsen
1205000012050000
Jewelry
0.000.00
Gold Co.Ltd
Shenzhen
Yunyouxu
an
5250000.05250000.0
Jewelry
00
Technolog
y Co.Ltd.
120510375250000.012576037
Total
9.7309.73
(2) Investment for associates and joint venture
Unit: RMB/CNY
Changes in the period (+ -)
Ending
Openin Investm Cash Other Accrual balance
Funded g ent dividen
Ending
Additio compre of of
enterpri balance Capital gains Other d or
balance
nal hensive impair impair(Book
se (Book reducti recogni equity profit Other investm income ment ment value)
value) on zed change announent adjustm provisi provisi
under ced to
ent on on
equity issued
I. Joint venture
II. Associated enterprise
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable □Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable □Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
140previous years and the actual situation in the current year
（3）Other note
4. Operation revenue and operation cost
Unit: RMB/CNY
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 41648464.52 36082094.24 24987989.13 22297957.34
Other business 1193561.03 1052051.60 1214376.83 1119937.21
Total 42842025.55 37134145.84 26202365.96 23417894.55
Breakdown of operating income and operating costs:
Unit: RMB/CNY
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business 42842025. 37134145. 42842025. 37134145.type 55 84 55 84
Including
：
Jewelry 41648464. 36082094. 41648464. 36082094.and gold 52 24 52 24
Lithium
battery
1193561.01052051.61193561.01052051.6
material for
3030
bicycles
and other
Classificati
on by 42842025. 37134145. 42842025. 37134145.business 55 84 55 84
area
Including
：
42842025.37134145.42842025.37134145.
Domestic
55845584
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
141Classificati
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
42842025.37134145.42842025.37134145.
Total
55845584
Information related to performance obligations:
The types of
The nature of The expected quality
The time to Whether it is
the goods that refunds to assurance
fulfill the Important the main
Item the company customers provided by the
performance payment terms responsible
promises to borne by the company and
obligation person
transfer company related
obligations
Other note
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this
reporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them
yuan of revenue is expected to be recognized in year yuan of revenue is expected to be recognized in year and
yuan of revenue is expected to be recognized in year.Significant contract changes or significant transaction price adjustments
Unit: RMB/CNY
Item Accounting treatment method The impacted amount on revenue
Other note：
5. Investment income
Unit: RMB/CNY
Item Current period incurred Prior period incurred
6. Other
XX. Supplementary Information
1. Current non-recurring gains/losses
□Applicable □Not applicable
142Unit: RMB/CNY
Item Amount Note
Switch-back of provision of impairment
of account receivable which are treated 41300.00
with separate depreciation test
Other non-operation revenue and
expenditure except for the 1180134.87
aforementioned items
Less: Impact on income tax 304903.13
Amount of impact of minority
29308.22
interests
Total 887223.52 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□Applicable□Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□Applicable□Not applicable
2. ROE and EPS
Earnings per share
Profits during report period Weighted average ROE
Basic EPS(RMB/Share) Diluted EPS(RMB/Share)
Net profits belong to common
stock stockholders of the 1.83% 0.0083 0.0083
Company
Net profits belong to common
stock stockholders of the
1.55%0.0070.007
Company after deducting
nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable□Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable□Not applicable
143(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ noted the name of such foreign organ
4. Other
Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited
23 August 2024
144
沪公网安备31011802005267号
