深中华B:2022年半年度报告（英文版）

Shenzhen China Bicycle Company (Holdings) Limited

Semi-Annual Report 2022

August 2022Section I. Important Notice Contents and Interpretation

Board of Directors Supervisory Committee all directors supervisors and senior executives of

Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the

Company) hereby confirm that there are no any fictitious statements misleading statements

or important omissions carried in this report and shall take all responsibilities individual

and/or joint for the reality accuracy and completion of the whole contents.Li Hai Principal of the Company Sun Longlong person in charge of accounting works and

Zhong Xiaojin person in charge of accounting organ (accounting principal) hereby confirm

that the Financial Report of 2022 Semi-Annual Report is authentic accurate and complete.All directors are attended the Board Meeting for report deliberation.The Company plans not to distribute cash dividends not to send bonus shares and no reserve

capitalizing.

1Contents

Section I Important Notice Contents and Interpreta... 1

Section II Company Profiel and Main Financial Inde... 5

Section III Management Discussion and Analysis ...... 9

Section IV Corporate Governance .................... 22

Section V Enviornmental and Social Reponsibility ... 23

Section VI Important Events ......................定义书签。

Section VII Changes in Shares and Particular about.. 33

Section VIII Preferred Stock .....................定义书签。

Section IX Corporate Bonds ......................... 39

Section XI Financial Report ........................ 40

2Documents Available for Reference

1. Accounting statement carrying the signatures and seals of the legal representative person in charge of

accounting and person in charge of accounting organ.

2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper

designated by CSRC in the report period.

3. English version of the Semi-Annual Report 2022

3Interpretation

Items Refers to Contents

4Section II. Company Profile and Main Financial Indexes

I. Company profile

Short form of the stock Zhonghua-A Zhonghua-B Code for share 000017 200017

The abbreviation of the stock

N/A

before changed(if applicable)

Stock exchange for listing Shenzhen Stock Exchange

Name of the Company (in

深圳中华自行车（集团）股份有限公司

Chinese)

Short form of the Company深中华

(in Chinese) (if applicable)

Foreign name of the

Shenzhen China Bicycle Company (Holdings) Limited

Company (if applicable)

Short form of foreign name of

CBC

the Company (if applicable)

Legal representative Li Hai

II. Person/Way to contact

Secretary of the Board Rep. of security affairs

Name Sun Longlong Yu Xiaomin Zhong Xiaojin

501 Zhongxin Technology Building 501 Zhongxin Technology Building

Contact add. No.31 Bagua Rd. Bagualing Futian No.31 Bagua Rd. Bagualing Futian

District Shenzhen District Shenzhen

Tel. 0755-2551699828181666 0755-2551699828181666

Fax. 0755-28181009 0755-28181009

E-mail dmc@szcbc.com dmc@szcbc.com

III. Others

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in reporting period or

not

□Applicable √Not applicable

The registrations address offices address and codes as well as website and email of the Company have no changes in the Period

found more in Annual Report 2021.

2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not

5□ Applicable √ Not applicable

The newspaper appointed for information disclosure website for semi-annual report publish appointed by CSRC and preparation

place for semi-annual report have no change in reporting period found more details in Annual Report 2021.

3. Other relevant information

Whether other relevant information has changed during the reporting period

□ Applicable √ Not applicable

IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□ Yes √ No

Changes in the current period

Current period Same period of last year over the same period of

previous year (+-)

Operation revenue(RMB) 106665446.58 54130317.60 97.05%

Net profit attributable to

shareholders of the listed -1483364.42 1365493.34 -208.63%

company(RMB)

Net profit attributable to

shareholders of the listed

company after deducting non- -2275914.14 -416594.29 -446.31%

recurring gains and

losses(RMB)

Net cash flow arising from

-9279476.52-2447126.82-279.20%

operating activities(RMB)

Basic earnings per share

-0.00270.0025-208.00%

(RMB/Share)

Diluted earnings per share

-0.00270.0025-208.00%

(RMB/Share)

Weighted average ROE -18.14% 11.78% -29.92%

Increase/decrease in current

End of current period End of last year report-end over that of last

period-end(+-)

Total assets (RMB) 101482852.73 97363437.22 4.23%

Net assets attributable to

shareholder of listed company 7435173.74 8918538.16 -16.63%

(RMB)

6V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report under both IAS (International

Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either IAS (International

Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.

2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting

rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either foreign accounting rules or

Chinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss

√ Applicable □ Not applicable

Unit: RMB/CNY

Item Amount Note

Government subsidy reckoned into

current gains/losses (except for those

with normal operation business

concerned and conform to the national

153395.80

policies & regulations and are

continuously enjoyed at a fixed or

quantitative basis according to certain

standards)

Switch-back of provision of impairment

of account receivable which are treated 721987.00

with separate depreciation test

Other non-operation revenue and

expenditure except for the 224228.84

aforementioned items

Less: Impact on income tax 6055.20

Impact on minority shareholders’

301006.72

equity (post-tax)

Total 792549.72

Other gains/losses items that conform to the definition of non-recurring gains/losses:

□ Applicable √ Not applicable

The Company does not have other gains/losses items that conform to the definition of non-recurring gains/losses

Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure

for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring

profit(gain)/loss

□Applicable √Not applicable

7The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosure

for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurring

profit(gain)/loss

8深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section III Management Discussion and Analysis

I. Main businesses of the company during the reporting period

During the reporting period the company’s main businesses were bicycles and lithium battery materials business

and jewelry gold business. (1) Bicycles and lithium battery materials business included the production assembly

procurement and sales of bicycles and electric bicycles and purchase sales and commissioned processing of

lithium battery materials etc.; (2) The gold jewelry business mainly provided supply chain management and

services in the vertical field of gold jewelry. The company connected with downstream gold jewelry brands

purchased gold and diamonds according to their product needs and then commissioned gold jewelry processing

plants for processing made product certification for the processed finished products after passing the inspection

and delivered them to downstream customers. Through the integration of upstream supplier resources and

downstream customer resources the turnover rate of gold jewelry products in the upstream and downstream was

improved the cost of circulation links was reduced and the overall competitive advantage of the upstream and

downstream was formed.The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

(i) Analysis of the industry market size

1. The product category of the industry is relatively rich

Jewelry can be divided into gold diamond jade colored jewelry and others. Under the background of China’s

cultural tradition of advocating gold jewelry and the investment properties of gold gold jewelry occupies a

relatively high proportion in the domestic jewelry market reaching 60.13%. Diamond and jade are also the main

categories of jewelry in China accounting for 13.97% and 9.85%. From the international market the jewelry

markets of developed countries such as the United States Japan and Europe are all dominated by diamond

jewelry. Compared with the international market the main categories of China’s jewelry market are more

abundant and the proportion of various jewelry markets is more balanced.

2. The actual consumption of gold jewelry has a steady growth

With the growth of the national economy and the accumulation of wealth of residents China’s demand for gold

grew rapidly in the early 21st century making it the world’s largest gold consumer. The fall in gold prices in 2013

triggered a boom of buying gold jewelry and also overdrew the demand for gold jewelry in advance which

declined from 2013 to 2016. However after a period of readjustment along with the gradual recovery of the

economy and gold prices the gold jewelry industry has bottomed out since September 2016 and continued to

grow steadily in 2017 entering a new round of recovery cycle. In 2022 the domestic pandemic was effectively

9深圳中华自行车（集团）股份有限公司2022年半年度报告全文

controlled enterprises resumed work and production in an orderly manner and the consumer market entered a

stage of gradual recovery. The gold jewelry consumer market benefited from the rigid demand for weddings

which played a positive role in promoting gold jewelry sales. Based on the further improvement of China’s

macroeconomic strength and international status a huge middle-class consumer group has been formed which

has brought a new development pattern to the development of the gold jewelry market and opened up new

incremental space.(ii) Industry development trend analysis

1. The increase in industry concentration has become the mainstream trend

In recent years consumers’ brand awareness has been increasing. In addition at the end of 2014 the NationalJewelry Standards Technical Committee revised the mandatory national standard “Regulations on the Purity ofPrecious Metals in Jewelry and Naming” (GB11887-2012) which deleted the “pure gold” and other titles guided

consumers to pay more attention to jewelry design craftsmanship style and brand value and no longer be

attracted by the words “pure gold” in the slogan and pay more attention to product quality prompting small

jewelry enterprises to move closer to large jewelry enterprises. The increasing concentration of the jewelry

industry has become the mainstream trend. In contrast some regional branded or unbranded small jewelry

companies are at a disadvantage in terms of scale capital cost etc. coupled with their own lack of ability in

brand operation management product marketing design and enterprise operation in the case of consumers paying

more and more attention to brand they will have to choose to rely on the development of jewelry brands with

larger brand awareness which will further promote the improvement of the industry concentration and the

national jewelry brands will gain an opportunity for vigorous development.

2. The development trend of industrial clustering is more obvious

The cluster development of the jewelry industry has now become an important direction for China's jewelry

industry to improve its comprehensive competitiveness and promote the extension and upgrade of the

characteristic industry chain of the regional jewelry. At present there are more than ten jewelry industry bases in

China all of which have distinctive characteristics and outstanding advantages. Whether it is pearl cultivation

jade carving or jewelry processing they all add charm to the city and also bring vitality to the prosperity of the

jewelry industry. Special jewelry industry bases such as Shenzhen Luohu Guangzhou Panyu mainly focus on

precious metal jewelry inlay processing diamond cutting and supporting products forming a series of leading

enterprises and many small and medium-sized enterprises. At the same time with the strong support of the local

government the supporting system such as logistics services information services and technical services have

been continuously improved.

3. The Third- and fourth-tier cities become important consumer markets for the jewelry industry

In recent years the pace of urbanization in China has gradually accelerated and the urbanization rate has

continued to grow. Residents in rural areas are gradually relocating and settling in nearby third- and fourth-tier

cities which steadily deliver new vitality to the third- and fourth-tier cities. In the future the third- and fourth-tier

10深圳中华自行车（集团）股份有限公司2022年半年度报告全文

cities will have broad market space and show huge growth potential. With the sinking trend of the jewelry

consumption market the third- and fourth-tier cities will become the main markets for the growth of jewelry

companies in the future.

4. Channel strength will be regarded as the core competitiveness of enterprises for a long time

The internal competition in the jewelry industry is relatively large and the fierce market competition makes the

construction and control of sales channels for jewelry companies crucial. At the same time due to the high value

of jewelry consumers are often worried about the quality of the product and the reasonableness of the price when

purchasing which often prompts them to purchase through physical channels. There is a certain scarcity of high-

quality physical channels and the number of high-quality shops in a region’s high-quality business districts is

scarce. Such high-quality shops can not only provide higher traffic improve the retail performance of jewelry but

also have the important value of brand promotion. Therefore in the fierce market competition it is very important

for jewelry enterprises to control high-quality physical channels which reflects the core competitiveness of

enterprises on the other side.

5. Brand and design capabilities will become a new driving force for the development of the industry

With the change of consumer demographic structure and the increase of per capital income the middle and upper

middle class and wealthy people have gradually become the main force of consumption and the mainstream

consumption concept has also quietly changed. Compared with traditional consumers emerging consumer groups

pay more attention to the design craftsmanship style and brand value of jewelry products hoping to meet their

needs to show their taste and personality. In addition the National Jewelry Standards Technical Committee hasremoved titles such as “pure gold from the national standards further prompting consumers to pay attention to thedesign craftsmanship style and brand value of jewelry rather than overemphasizing purity.

6. There is large space for improving the penetration rate of diamond jewelry

In China different jewellery products have different market maturity levels. Among them gold jewelry has a

relatively deep foundation in Chinese culture and it is still the main jewelry consumption type so far. The

diamond jewelry is small in volume but is growing rapidly and has a broad space for industry development in the

future.(iii) Competitive advantages of the company to engage in the jewelry and gold business

1. High-quality upstream supplier system

At present the company has established relatively stable cooperative relationships with major diamond suppliers

and processors at home and abroad and has advantages in raw material procurement cost order production cycle

and product quality control which can continuously reduce supply cost and improve operational efficiency.

2. Diversified downstream market channels and customer resources

The company is actively expanding its gold jewelry customers now. In addition to customers with clear orders it

11深圳中华自行车（集团）股份有限公司2022年半年度报告全文

is currently negotiating business cooperation with a number of domestic jewelry brands. The above customers

include three types of customers of which Class A customers are national well-known brand customers with

more than 500 retail stores; Class B customers are small and medium-sized/regional/segmented brands with 300-

500 retail stores; Class C customers are small and medium-sized brands with 50-100 retail stores.

3. Improve the industrial chain of production and design

The company has a one-stop industrial chain of design production processing testing and wholesale. Brand

owners can rely on our jewelry processing resources to hand over lower value-added links such as manufacturing

and distribution to the company so as to focus on the higher value-added brand operation and sales links.Outsourcing in the production and design process can improve the homogenization of gold jewelry products.

4. Closed-loop business process and risk control system

The company has formulated strict business internal control processes such as supplier admittance standards

customer evaluation system full-process order tracking system and procurement price comparison system and

has realized the closed-loop control of capital flow information flow and logistics and the multi-level risk control

through the integrated service platform of supply system and the integrated solution of capital management.(iv) Main business models during the reporting period

1.Procurement model

The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds

and gold of which the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong

and domestic mature diamond wholesalers (generally members of the Shanghai Diamond Exchange) ) gold was

mainly purchased from the Shanghai Gold Exchange through the company's membership qualifications at

Shanghai Gold Exchange. The company has established professional procurement department and team to be

responsible for the procurement of diamond products and jewellery. The specific procurement models varied

according to customer needs.

2. Production model

By integrating upstream commissioned processing plants the company outsourced the production of products

ordered by customers to professional jewelry manufacturers to give full play to their professional and scale effect.In view of the current situation and characteristics of domestic jewelry processing enterprises the company

established a set of effective supplier management mechanisms and evaluation standards to achieve a benign

interaction between the production system of outsourced manufacturers and the company's business development.

3. Sales model

According to the annual order planning and regular procurement requirements of brand retailers the company

provided B-end customers with various forms of supply chain management services such as spot procurement

order production and customized development so as to minimize product inventory and improve the supply chain

effectiveness for customers.

12深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and

suppliers' product styles and spot resources and provided corresponding product structure according to the

customer's brand characteristics and terminal market needs;

Order production: Customers placed orders to the company according to their own needs and the company

purchased raw materials and subcontracted processing to form finished products and sell them to customers;

Customized development: According to the characteristics of their own brands and future development needs

customers entrusted the company to develop and design the product styles and produce finished products to sell

to customers.(v) Operation of the physical store during the reporting period

During the reporting period gold and jewelry business of the Company mainly provides supply chain

management and services in the vertical field of gold and jewelry it connects with the downstream gold jewelry

brand and does not have the physical stores.(vi) Operation of the on-line sales in reporting period

The Company does not have on-line sales in the Period

(vii) Inventory in the reporting period

As of end of the Period balance of inventory from jewelry business amounted to 23255279.89 yuan a 207 % up

compared with that of period-begin types of the inventory includes:

Unit: RMB/CNY

Item Types Amount Proportion

Jewelry 1970671.11 8.47%

Gold jewelry — —

Finished goods

Other 3382.6 0.01%

Total 1974053.71 8.49%

Gold 16496545.99 70.94%

Platinum — —

Raw materials

Diamond 1479347.54 6.36%

Total 17975893.53 77.30%

Packaging 105670.36 0.45%

Goods in process 3199662.29 13.76%

Total 23255279.89 100.00%

In the bicycle and lithium battery materials industry as a traditional manufacturing industry the bicycle industry

continues the dilemma of rising labor costs manufacturing costs capital costs and material costs. The

implementation of the new national standards for safety technical specifications of electric bicycle in April 2019

accelerated the reshuffle of the industry and formed a new round of industry shocks. In addition on the basis of

the violent shock of shared bicycles with capital advantages on the bicycle industry and upstream supply chain

13深圳中华自行车（集团）股份有限公司2022年半年度报告全文

operations in the past few years the aftershocks continue to impact the recovery of the industry due to the lack of

profit model and capital chain problems. At the same time the bicycle industry as a traditional manufacturing

field has also ushered in an important opportunity to accelerate transformation and upgrading under the guidance

of the "Made in China 2025" strategy of strengthening the country under the guidance of the basic policy of

"innovation-driven quality-first green development structural optimization and talent-oriented" ushered in the

development opportunities for the implementation of the new national standards for electric bicycles and faced

important opportunities and challenges of e-commerce development on channel impact channel integration and

Internet+. Our country is the world's largest country in the production and sales of electric bicycles. After years of

development electric bicycles have gradually become an important means of transportation for consumers' daily

short-distance trips. At present there are about 200 million vehicles in the whole society. Structural body motor

power battery and control system as the core components of electric bicycles Shenzhen China Bicycle has

closely followed up and studied their technological development application development and commercial value

for a long time and determined the list of qualified suppliers for core components year by year. As one of the core

components of electric bicycle lead-acid batteries have been mainly used as the power batteries in the past ten or

twenty years. With the development and popularization of new energy technologies and new energy materials it

is expected that they will be replaced by lithium batteries on a large scale in the future. The implementation of the

new national standards for safety technical specifications of electric bicycle has comprehensively improved the

safety performance of electric bicycles adjusted and improved technical indicators such as speed limit vehicle

quality and pedaling ability. The new standards that are close to the people's livelihood and serve the people's

livelihood have increased the application space of lithium battery energy storage and lithium battery electric

bicycles will usher in a new stage of development.II. Core Competitiveness Analysis

In 2021 based on its own poor economic conditions after the reorganization the company continued to adhere to

the traditional business development of electric bicycles strived to carry out new product research and

development and carried out online and offline sales and brand management; at the same time based on the long-

term process of the electric bicycle business correspondingly carried out follow-up research on related industrial

projects and technical applications in the upstream and downstream of the industrial chain. On the basis of

extensive commercial contacts and previous businesses the company continued to expand the lithium battery

material business to enrich the main business. On the one hand the company continued to promote the

development of the jewelry and gold business and expand the business dimension. In August 2019 the Company

and Shenzhen Zuankinson Jewelry Co. Ltd jointly established a Shenzhen Xinsen Jewelry Gold Supply Chain

Co. Ltd with contribution of 6.5 million yuan. Of which the Company holds 65% equity and is the controlling

shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd while 35% equity held by Zuankinson

Jewelry. According to actual operation development in February 2020 the two parties are decided to increase the

capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd to 20 million yuan in the same proportion.Relevant registration capital is fully funded in June 2020. In order to meet the future business development needs

14深圳中华自行车（集团）股份有限公司2022年半年度报告全文

of Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd. it will enhance its financial strength comprehensive

competitiveness and anti-risk capabilities. In August 2020 the company and the joint venture partner Shenzhen

Zuankinson Jewelry and Gold Supply Chain Co. Ltd. decided to jointly increase the capital of Shenzhen Xinsen

Jewelry Gold Supply Chain Co. Ltd. in the same proportion increasing the registered capital from 20 million

yuan to 200 million yuan of which the company newly increased capital of 117 million yuan which was

successively invested in accordance with its own funds and the availability of funds raised from the non-public

issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan a total of 180 million yuan

increased. The above mentioned capital increase event has been deliberated and approved by the second

extraordinary general meeting of shareholders of 2020 dated 21 August 2020. On the one hand making more

efforts to promote the selection of restructuring party and planning for the non-public offering of shares in the

hope of improving the business strength and development momentum of the Company.In terms of the planning of a non-public offering of shares on December 30 2020 the company held the third

extraordinary general meeting of shareholders in 2020 and reviewed and approved the new plan for non-public

issuance of A shares intending to raise funds from Wansheng Industrial Company through non-public issuance of

shares not exceeding 293.6 million yuan which would be used to supplement working capital after deducting

issuance costs this issuance would lead to changes in the company's right of control. On November 11 2021 the

Company received the Approval of Non-public Issue of Shares under the name of Shenzhen China Bicycle

Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC which approved the application for the

above non-public offering of shares. The Approval will be valid for 12 months from the date of approval of the

issue. Relevant follow-up works are in progress.Jewelry and gold business of the Company has gradually become the core business of the Company through the

endogenous development

III. Main business analysis

Overview

See the “I-Main businesses of the Company during the reporting period”

Y-o-y changes of main financial data

Unit: RMB/CNY

Current period Same period last year y-o-y changes (+ -) Reasons

Revenue from gold

Operation revenue 106665446.58 54130317.60 97.05% jewelry business

increased

Costs of gold jewelry

Operation cost 100215639.64 48590120.12 106.25%

business increased

Expenses of gold

Sales expenses 2423889.53 876189.13 176.64% jewelry business

increased

Administration 4855763.49 2619117.48 85.40% Expenses of gold

15深圳中华自行车（集团）股份有限公司2022年半年度报告全文

expenses jewelry business

increased

Income tax expenses 19647.32 161386.48 -87.83%

There was no R&D

R&D investment 694172.50 2120389.55 -67.26% expenses in gold

jewelry business

Net cash flow arising The inventory result

from operating -9279476.52 -2447126.82 -279.20% from purchasing gold

activities jewelry

Net cash flow arising

from financing -245979.70

activities

Net increase of cash

-9562415.85-2453084.81-289.81%

and cash equivalent

The bad debt reversal

Credit impairment are accrual

-42610.481318717.42-103.23%

losses independently last

period

Major changes on profit composition or profit resources in reporting period

No major changes on profit composition or profit resources occurred in reporting period.Constitution of operation revenue

Unit: RMB/CNY

Current Period Same period last year

Y-o-y changes (+-

Ratio in operation Ratio in operation

Amount Amount )

revenue revenue

Total operation

106665446.58100%54130317.60100%97.05%

revenue

According to industries

Jewelry and gold 93257753.50 87.43% 40728749.57 75.24% 128.97%

Bicycle lithium

battery material 13407693.08 12.57% 13401568.03 24.76% 0.05%

and others

According to products

Jewelry and gold 93257753.50 87.43% 40728749.57 75.24% 128.97%

Bicycle lithium

battery material 13407693.08 12.57% 13401568.03 24.76% 0.05%

and others

According to region

Domestic 106665446.58 100.00% 54130317.60 100.00% 97.05%

Industries products or regions that account for more than 10% of the operating revenue or operating profit of the

Company

√ Applicable □ Not applicable

Unit: RMB/CNY

Increase/decrea

Increase/decrea Increase/decrea

Operation Gross profit se of gross

Operation cost se of operation se of operation

revenue ratio profit ratio y-o-revenue y-o-y cost y-o-y

According to industries

16深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Jewelry and

93257753.5088398221.595.21%128.97%136.85%-3.15%

gold

Bicycle lithium

battery material 13407693.08 11817418.05 11.86% 0.05% 4.88% -4.06%

and others

According to products

Jewelry and

93257753.5088398221.595.21%128.97%136.85%-3.15%

gold

Bicycle lithium

battery material 13407693.08 11817418.05 11.86% 0.05% 4.88% -4.06%

and others

According to region

Domestic 106665446.58 100215639.64 6.05% 97.05% 106.25% -4.19%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main business based on

latest one year’s scope of period-end

□ Applicable √ Not applicable

Reasons for y-o-y relevant data with over 30% changes

√ Applicable □ Not applicable

IV. Analysis of the non-main business

□ Applicable √ Not applicable

V. Assets and liability analysis

1. Major changes of assets composition

Unit: RMB/CNY

End of current period End of last year

Ratio changes Notes of major

Ratio in total Ratio in total

Amount Amount (+-) changes

assets assets

The inventory

result from

Monetary fund 25905133.26 25.53% 33246957.92 34.15% -8.62%

purchasing gold

jewelry

Account

42930643.3342.30%46850083.5948.12%-5.82%

receivable

Increase in

inventory from

Inventory 23761043.78 23.41% 8248573.77 8.47% 14.94%

gold & jewelry

business

Fix assets 3277124.92 3.23% 3439212.00 3.53% -0.30%

Right-of-use

1269594.861.25%1505258.901.55%-0.30%

assets

Contract

749240.520.74%124328.070.13%0.61%

liability

Leasing

38957.320.04%228302.370.23%-0.19%

liability

17深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Increase in

account

Account

14873529.41 14.66% 8297306.34 8.52% 6.14% payable from

payable

gold & jewelry

business

2. Main overseas assets

□Applicable √Not applicable

3. Assets and liability measured by fair value

□Applicable √Not applicable

4. Assets rights restricted till end of the period

1. Among the ending monetary funds there was 2220591.19 yuan that are judicially frozen due to the lawsuit of Shenzhen Jianzhi

Industrial Development Co. Ltd.

2.At the end of the current period the total fixed output value included six suites of house properties at Lianxin

JiaYuan Luohu District Shenzhen purchased in 2016 with original value of 2959824.00 Yuan which were

affordable housing purchased from the Housing and Construction Bureau of Luohu District to provide to

enterprise talents for living. The contract stipulated that the purchasing enterprise is not allowed to conduct any

form of property rights transaction with any units or individual other than the government.V. Investment analysis

1. Overall situation

□ Applicable √ Not applicable

2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable

3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable

4. Financial assets investment

(1) Securities investment

□ Applicable √ Not applicable

18深圳中华自行车（集团）股份有限公司2022年半年度报告全文

The Company has no securities investment in the Period

(2) Derivative investment

□ Applicable√Not applicable

The Company has no derivatives investment in the Period

5. Application of raised proceeds

□ Applicable √ Not applicable

The company had no application of raised proceeds in the reporting period.VII. Sales of major assets and equity

1. Sales of major assets

□ Applicable √Not applicable

The Company had no sales of major assets in the reporting period.

2. Sales of major equity

□ Applicable √Not applicable

VIII. Analysis of main holding company and stock-jointly companies

√Applicable □ Not applicable

Particular about main subsidiaries and stock-jointly companies net profit over 10%

Unit: RMB/CNY

Company Main Register Operation Operation

Type Total assets Net assets Net profit

name business capital revenue profit

Shenzhen

Xinsen Supply

Jewelry chain

2000000053582822.37636189.93257753.

Gold Subsidiary business of 564761.27 766245.45

0128850

Supply jewelry and

Chain Co. gold

Ltd.Distributio

Shenzhen

n of

Emmelle 22711676. 3689441.4 7446523.4

Subsidiary bicycles 5000000 10742.90 13840.24

Industrial 75 0 6

and spare

Co. Ltd.parts

Particular about subsidiaries obtained or disposed in report period

□ Applicable √ Not applicable

Notes of holding and shareholding companies

1.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd the balance of minority equity

19深圳中华自行车（集团）股份有限公司2022年半年度报告全文

at period-end amounting to 13665166.45 Yuan.

2.The Company holds 70 percent equity of the Shenzhen Emmelle Industrial Co. Ltd. the balance of minority equity at period-end

amounting to 1100464.33 Yuan.IX. Structured vehicle controlled by the Company

□ Applicable √ Not applicable

X. Risks and countermeasures

(1) The international political and economic situation was complex and severe wars and geopolitical disputes

appeared one after another the global pandemic continued and commodity prices fluctuated at high levels.

(2) China’s economic development faced triple pressures of demand contraction supply shock and weakening

expectations. Local outbreaks occurred from time to time. The recovery of consumption and investment was slow

the supply of energy and raw materials was still tight the pressure of imported inflation increased the production

and operation of small medium and micro enterprises and individual businesses were difficult the task of

stabilizing employment became more arduous and there were many hidden risks in the economic and financial

fields.

(3) Domestic local epidemics still occurred from time to time which posed problems and challenges to business

liaison material supply production organization sales and transportation etc. and accordingly affected materials

transportation labor management cost and operational efficiency.Facing the above problems the central government and governments at all levels have taken multiple measures to

stabilize the people’s livelihood stabilize the enterprises and employment the Company will strive to maintain

stability and seek development through increase the income and reduce the expenditures. Combined withe the

actual situation of its own thin family background after the reorganization on the one hand the Company

continue to adhere to the traditional business development of electric bicycles and strive to carry out the R&D of

new products and online & offline sales and brand management works; at the same time based on the long-term

process of the electric bicycle business the follow-up research of related industrial projects and technology

applications in the upstream and downstream of the industrial chain have been carried out accordingly and on the

basis of extensive business contacts and businesses in previous years it continued to expand the lithium battery

material business to enrich the main business. On the other hand continued to promote the development of the

jewelry gold supply chain business and expand the business dimension. In August 2019 the company and

Shenzhen Zuankinson Jewelry Co. Ltd. jointly invested 6.5 million yuan to establish Shenzhen Xinsen Jewelry

Gold Supply Chain Co. Ltd. the company holding 65% of the shares as the controlling shareholder of Shenzhen

Xinsen Jewelry Gold Supply Chain Co. Ltd. while Zuankinson Jewelry holding 35% of the shares. According to

the actual situation of business development in February 2020 the two parties decided to increase the capital of

Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd. to 20 million yuan in the same proportion and the relevant

20深圳中华自行车（集团）股份有限公司2022年半年度报告全文

registered capital has been in place in June 2020. In order to meet the future operation and development needs of

Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd. and enhance its financial strength comprehensive

competitiveness and anti-risk ability the company signed a capital increase contract with the joint venture

Shenzhen Zuankinson Jewelry and Gold Supply Chain Co. Ltd. in August 2020 and once again increased capital

to Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd. in the same proportion and the registered capital was

increased from 20 million yuan to 200 million yuan of which the company increased capital of 117 million yuan

which would be successively invested in accordance with its own funds and the availability of funds raised from

the non-public issuance of A shares; Zuankinson Jewelry newly increased capital of 63 million yuan totaling 180

million yuan. On August 21 2020 the company's 2020 second extraordinary general meeting of shareholders

reviewed and approved the above capital increase. On the one hand we strived to promote the selection of the

company's restructuring party and plan for the non-public issuance of stocks hoping to improve the company's

business strength and development potential.In terms of the planning of a non-public offering of shares on December 30 2020 the company held the third

extraordinary general meeting of shareholders in 2020 and reviewed and approved the new plan for non-public

issuance of A shares intending to raise funds from Wansheng Industrial Company through non-public issuance of

shares not exceeding 293.6 million yuan which would be used to supplement working capital after deducting

issuance costs this issuance would lead to changes in the company's right of control. On November 11 2021 the

Company received the Approval of Non-public Issue of Shares under the name of Shenzhen China Bicycle

Company (Holdings) Limited (ZJ XK [2021] No. 3552) from the CSRC which approved the application for the

above non-public offering of shares. The Approval will be valid for 12 months from the date of approval of the

issue. Relevant follow-up works are in progress.

21深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section IV Corporate Governance

I. In the report period the Company held annual shareholders’ general meeting and

extraordinary shareholders’ general meeting

1. Annual Shareholders’ General Meeting in the report period

Ratio of investor

Session of meeting Type Date Date of disclosure Resolutions

participation

Found more in“Notice onResolution of

Annual GeneralAnnual General Annual General Meeting 2021”

11.60% June 29 2022 June 30 2022

Meeting 2021 Meeting (No.: 2022017)

released on

Juchao Website

(www.cninfo.co

m.cn)

2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable √ Not applicable

II. Changes of directors supervisors and senior executives

□ Applicable √ Not applicable

There were no changes in the directors supervisors and senior executive of the Company during the Period found more in the

Annual Report 2021

III. Profit distribution plan and capitalizing of common reserves plan for the Period

□ Applicable √ Not applicable

The Company has no plans of cash dividend distributed no bonus shares and has no share converted from capital reserve either for

the year.IV. Implementation of the company’s stock incentive plan employee stock ownership plan or

other employee incentives

□ Applicable √ Not applicable

The Company had no implementation of the company’s stock incentive plan employee stock ownership plan or other employee

incentives in the reporting period.

22深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section V Environmental and Social Responsibility

I. Major environmental protection

The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department

□Yes √No

Administrative penalties imposed for environmental issues during the reporting period

Impact on the

Company/Subsidia Reasons for production & Corrective

Violation situation Penalty results

ry penalty operation of the measures

listed company

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

Other environmental information disclosed with reference to the key emission units

Not applicable

Measures taken to reducing the carbon emissions during the reporting period and their effectiveness

□ Applicable √ Not applicable

Reasons for not disclosing other environmental information

Not applicable

II. Social responsibility

During the reporting period the company conscientiously fulfilled its corporate social responsibility paid

attention to protecting the interests of shareholders especially minority shareholders; Treated suppliers and

customers with integrity; Earnestly fulfilled the responsibilities and obligations to the society shareholders

employees and other stakeholders created a harmonious environment for enterprise development and realized the

common development of the enterprise and stakeholders.

1. Protection of shareholders' rights and interests

The company strictly complies with the provisions of relevant laws and regulations such as the Company Law the

Securities Law and the Governance Code for Listed Companies continuously improves the corporate governance

structure adheres to handing over the important matters to the resolutions of the shareholders' meeting provides

convenience for medium and small investors to participate in the shareholders' meeting fully listens to the small

and medium-sized investors’ reasonable advice on the company's development and governance and safeguards

the legitimate rights and interests of shareholders.In first half of 2022 the board of directors of the company convened one shareholders' meeting the meeting

adopted the combination of on-site voting and online voting the votes of small and medium investors were

counted separately provided convenience for the majority of investors to participate in the voting at the

23深圳中华自行车（集团）股份有限公司2022年半年度报告全文

shareholders' meeting and ensured the participation right and supervision right of the small and medium-sized

investors.In first half of 2022 the company strengthened communication with investors especially investors from the

public answered questions about which the public and investors concerned and ensured the investors' right to

know in line with the Information Disclosure Affairs Management System and Reception and Promotion Work

System and by means of various forms such as the interactive platform of Shenzhen Stock Exchange hotline of

the company’s securities affairs department and so on.On May 19 2022 the company held the 2021 annual performance briefing in which the company made online

communication with investors on the company's performance operating conditions development prospects and

other issues of interest to investors. A total of 11 questions were raised by investors during the briefing which

were answered by directors and senior management personnel.The company is committed to protecting the rights and interests of investors by improving the corporate

governance structure improving the level of information disclosure and investor relationship management and

carrying out investor education and guiding investors to form value investment concept through real and effective

communication. In order to effectively ensure smooth service channels for investors the company has arranged

full-time personnel to answer investors' hotline calls and answer questions on the interactive platform and

relevant staff has patiently analyzed the announcement information for investors to help investors understand the

company's situation in time.

2. Protection of workers' rights and interests

The company adheres to the people-oriented comprehensively implements the Labor Law and Labor Contract

Law attaches great importance to guarantee of the employees' rights and interests at the same time establishes

good communication channels throughout the whole process of staff management and care pays attention to staff

growth improves the staff overall quality cultivates excellent internal training culture system creates a good

learning environment. Meanwhile the company pays attention to enriching the spiritual life of employees

regularly carries out staff activities and improves team cohesion. In accordance with the Labor Contract Law of

the People's Republic of China and other relevant national and local labor laws and regulations the company signs

labor contracts with employees to protect their rights and interests. The company and its subsidiaries strictly

implement the national employment system labor protection system social security system and medical security

system and pay the housing provident fund medical insurance endowment insurance unemployment insurance

work-related injury insurance and maternity insurance for employees according to the state regulations. The

company adheres to corporate culture of efficient coordination people-oriented on-demand training training by

level and echelon training. The company establishes internal knowledge sharing system promotes information

and knowledge exchange among various modules of the company and improves team coordination ability. It

24深圳中华自行车（集团）股份有限公司2022年半年度报告全文

encourages employees to participate in continuing education and enhances the knowledge structure optimization

and professional quality promotion of workers at various positions.

3. Protection of rights and interests of suppliers customers and consumers

The company actively organizes and carries out customer management takes measures to ensure the rights and

interests of customers and actively promotes customer satisfaction and service excellence. It makes full use of the

rich social resources in the market and establishes a good partnership with suppliers. The company promises not

to abuse or misuse consumer information for the protection of rights and interests of consumers.

25深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section VI Important Events

I. Commitments that the actual controller shareholders related party buyer and the Company have

fulfilled during the reporting period and the overdue commitments as of the end of the reporting period

□ Applicable √Not applicable

There is no commitments that the actual controller shareholders related party buyer and the Company have fulfilled during the

reporting period and the overdue commitments as of the end of the reporting period

II. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee against the regulation

□ Applicable √Not applicable

No external guarantee against the regulation occurred in the period

IV. Appointment and non-reappointment (dismissal) of CPA

Whether the financial report has been audited or not

□Yes √No

The financial report has not been audited

V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”

that issued by CPA

□ Applicable √ Not applicable

VI. Explanation from the BOD for “Qualified Opinion” of last year

√Applicable □ Not applicable

On 11 May 2012 the largest shareholder and biggest creditor of the Company Shenzhen Guosheng Energy

Investment and Development Co. Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming

the Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12th Oct. 2012

Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy

according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October 2012 Shenzhen

Intermediate People's Court ruled that the Company would be restructured from October 25 2012 and designated

26深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Beijing King & Wood (Shenzhen) Law Firm and Shenzhen Zhengyuan Liquidation Affairs Co. Ltd as the

administrators of the Company by virtue of Civil Ruling (2012) SZFPZ No. 30-1. At the same time Shenzhen

Intermediate People's Court issued the written decision (2012) SZFPZ No. 30-1 to approve the Company's self-

management of property and business affairs under the supervision of the administrator. On November 5 2013

Shenzhen Intermediate People's Court approved the company's reorganization plan by Civil Ruling (2012) SZFPZ

No. 30-6. On December 27 2013 Shenzhen Intermediate People's Court ruled the completion of reorganization

plan of Shenzhen China Bicycle by Civil Ruling (2012) SZFPZ No. 30-10 and terminated the bankruptcy

proceedings of Shenzhen China Bicycle.Through reorganization the heavy debt problem of the company was solved the net assets realized positive and

the main business of bicycle was retained and realized stable development. In the reorganization plan the

company has set the conditions for the introduction of the restructuring party hoping to recover the sustainable

operation ability and sustained profitability through the asset reorganization. The conditions for the company to

introduce the restructuring party are that the assessed net assets value is not less than 2 billion yuan and the net

profit of the year when the material assets reorganization is implemented is not less than 200 million yuan. At

present the company does not yet have a restructuring party. The company will continue to work hard to develop

its business through the restructuring process.VII. Bankruptcy reorganization

□ Applicable √ Not applicable

No bankruptcy reorganization for the Company in reporting period.VIII. Lawsuits

Significant lawsuits and arbitration

√ Applicable □ Not applicable

Outcome and

Amount Resulted an

impact of

Lawsuits involved (10 accrual Date of Disclosure

Progress lawsuits(arbit Enforcement

(arbitration) thousand liability or disclosure index

ration)

yuan) not (Y/N)

hearings

Contract The first Found more

dispute over traial verdict in the

As of thethe urban will not have “Lawsuits ofdate of this

renewal First trial a material the

announcemeproject of verdict on adverse Company”

3085.90 N nt the 2022-8-23

Zhonghua August 19 impact on the (Notice

lawsuit is

Garden 2022 profit for the No.:2022-

still under

Phase II- current 002) and

appealPlaintiff(She period or “Progress ofnzhen Jianzhi post-period the

27深圳中华自行车（集团）股份有限公司2022年半年度报告全文Industrial profit Lawsuits”

Development (Notice No.:

Co. Ltd); 2022-019)

Defendant released on

(Shenzhen Juchao

China Website

Bicycle

Company

(Holdings)

Limited)

Counter-

claim in the

contract

dispute on

urban

renewal The first

project of traial verdict Found more

Zhonghua will not have in the

As of theGarden a material “Progress ofdate of this

Phase II- First trial adverse the

announcemePlaintiff(She verdict on impact on the Lawsuits”

600 N nt the 2022-8-23

nzhen China August 19 profit for the (Notice No.:

lawsuit is

Bicycle 2022 current 2022-019)

still under

Company period or released on

appeal

(Holdings) post-period Juchao

Limited); profit Website

Defendant

(Shenzhen

Jianzhi

Industrial

Development

Co. Ltd)

Other lawsuits

√ Applicable □ Not applicable

Outcome and

Amount Resulted an

impact of

Lawsuits involved (10 accrual Date of Disclosure

Progress lawsuits(arbit Enforcement

(arbitration) thousand liability or disclosure index

ration)

yuan) not (Y/N)

hearings

Other

lawsuits and

arbitration

not up to

standards for Execution of All have

disclosure of correspondinbeen decided In progress

g amount Not Not

significant 43.21 N or close partially

based on applicable applicable

lawsuits through implemented judge or

during the mediation mediation

reporting

period (the

Company

and

28深圳中华自行车（集团）股份有限公司2022年半年度报告全文

subsidiary as

plaintiff)

Other

lawsuits and

arbitration

not up to

Tow parties

standards for

execute the

disclosure of

correspondin

significant Reached a

g payments Not Not

lawsuits 134.21 N settlement In progress

according to applicable applicable

during the agreement

the

reporting

settlement

period (the

agreement

Company

and

subsidiary as

defendant)

IX. Penalty and rectification

□ Applicable √ Not applicable

X. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable

XI. Major related transaction

1. Related transaction with routine operation concerned

□ Applicable √ Not applicable

The Company had no related transaction with routine operation concerned occurred in the period

2. Related transactions by assets acquisition and sold

□ Applicable √ Not applicable

No related transactions by assets acquisition and sold for the Company in reporting period.

3. Main related transactions of mutual investment outside

□ Applicable √ Not applicable

No main related transactions of mutual investment outside for the Company in reporting period.

4. Contact of related credit and debt

√ Applicable □ Not applicable

Whether exist non-operating contact of related credit and debt or not

√Yes □No

29深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Claim receivable from related party:

Whether

Balance Current Current Current Balance

has non-

at period- newly recovery( interest(1 at period-

Related Relations Causes of business Interest

begin(10 added(10 10 0 end(10

party hip formation capital rate

thousand thousand thousand thousand thousand

occupyin

Yuan) Yuan) Yuan) Yuan) Yuan)

g or not

Debts payable to related party:

Balance at Current Current Balance at

Current

period- newly recovery period-

Related Relationshi Causes of interest(10

begin(10 added(10 (10 Interest rate end(10

party p formation thousand

thousand thousand thousand thousand

Yuan)

Yuan) Yuan) Yuan) Yuan)

Shenzhen

Guosheng

The first Subsidiary

Energy

majority Emmelle 650 0 0 0.00% 0 650

Investment

shareholder loan

Developme

nt Co. Ltd.Influence on operation

result and financial statue

N/A

of the Company from

related debts

5. Contact with the related finance companies

□ Applicable √Not applicable

There are no deposits loans credits or other financial business between the finance companies with associated relationship and

related parties

6. Transactions between the finance company controlled by the Company and related parties

□ Applicable √ Not applicable

There are no deposits loans credits or other financial business between the finance companies controlled by the Company and

related parties

7. Other related transactions

□ Applicable √ Not applicable

The company had no other significant related transactions in reporting period.XII. Significant contract and implementations

1. Trusteeship contract and leasing

(1) Trusteeship

□ Applicable √ Not applicable

No trusteeship for the Company in reporting period.

30深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(2) Contract

□ Applicable √ Not applicable

No contract for the Company in reporting period.

(3) Leasing

√Applicable □Not applicable

Explanation on leasing

N/A

The projects that bring gain/loss to the Company amounting for 10% or more of the Company’s total profit for the reporting period

□ Applicable √ Not applicable

The Company does not have leasing projects that bring gain/loss to the Company amounting for 10% or more of the Company’s total

profit for the reporting period

2. Major guarantees

□ Applicable √ Not applicable

No guarantee for the Company in reporting period.

3.Trust financing

□ Applicable √ Not applicable

No trust financing for the Company in reporting period.

4. Other significant contracts

□ Applicable √ Not applicable

No other significant contract in reporting period.XIII. Explanation of other important events

√ Applicable □ Not applicable

1. Planning for non-public offering of shares

On December 30 2020 the company held the third extraordinary general meeting of shareholders in 2020

reviewed and approved the new plan for non-public issuance of A shares and planned to raise funds from

Wansheng Industry Company through non-public issuance of shares of total amount not exceeding 293.6 million

yuan which would be used to replenish working capital after deducting the issuance expenses and this issuance

will lead to changes in the company’s control. On October 25 2021 the company’s application for the non-public

issuance of A shares was reviewed and approved by the Issuance Examination Commission of the China

Securities Regulatory Commission (hereinafter referred to as the CSRC). On November 11 2021 the company

received the Approval for the Non-public Issuance of Shares by Shenzhen China Bicycle (Group) Co. Ltd.

31深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(ZJXK [2021] No. 3552) issued by the CSRC and the validity period of the approval is 12 months from the date

of approval for the issuance. Relevant work is currently in progress.

2. Lawsuits of the Company

On February 23 2022 the company received the Subpoena (2022) Yue 0303 Min Chu No. 3787 Complaint

Notice of Response Civil Ruling Paper (2020) Yue 0303 Zhi Bao No. 498 and other legal documents from

Shenzhen Luohu District People’s Court which has accepted the lawsuit brought by the plaintiff Shenzhen JianzhiIndustrial Development Co. Ltd. against the company on the grounds of “joint venture and cooperativedevelopment of real estate contract disputes” the amount involved was 30.859 million yuan. Meanwhile the

Company filed a counter suit against Shenzhen Jianzhi Industrial Development Co. ltd appealing payment of 6

million yuan in project returns. The above case was held at the Luohu Court of Shenzhen on the morning of May

11 2022 and the counterclaim was held at the same time as the present claim and no judgement was pronounced

in court. On August 19 2022 the Company received the Civil Ruling Paper (2022) Yue0303 Min Chu No.3787

from Shenzhen Luohu District People’s Court found more in the “Progress of the Lawsuits” (Notice No.: 2022-

019) released on Juchao Website dated August 23 2022. According to the first trial verdict by Shenzhen Luohu

District People’s Court the case will not have a material adverse impact on the profit for the current period or

post-period profit. As of the date of this announcement the lawsuit is still in the validity period for appeal the

Company will fulfill information disclosure obligations in a timely manner according to the progress of the

lawsuits. Majority of the investors are caution on the investment risks.XIV. Significant event of subsidiary of the Company

□Applicable √Not applicable

32深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section VII. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

Unit: Share

Before the Change Increase/Decrease in the Change (+ -) After the Change

Public

reserve

New Proporti Bonus transfer Subtot Proporti

Amount shares Others Amount

on shares into al on

issued

capital

I. Restricted shares 3957 0.00% 3957 0.00%

1. State-owned

00.00%00.00%

2. State-owned

legal person’s 0 0.00% 0 0.00%

3. Other domestic

39570.00%39570.00%

Including:

Domestic legal 0 0.00% 0 0.00%

person’s shares

Domestic

natural person’s 3957 0.00% 3957 0.00%

4. Foreign shares 0 0.00% 0 0.00%

Including:

Foreign legal 0 0.00% 0 0.00%

person’s shares

Foreign natural

00.00%00.00%

person’s shares

II. Unrestricted 100.00 100.00

551343990551343990

shares % %

1. RMB ordinary

30298100854.95%30298100854.95%

2. Domestically

24836298245.05%24836298245.05%

listed foreign shares

3. Overseas listed

00.00%00.00%

foreign shares

4. Others 0 0.00% 0 0.00%

100.00100.00

III. Total shares 551347947 551347947

Reasons for share changed

□ Applicable √ Not applicable

Approval of share changed

□ Applicable √ Not applicable

Ownership transfer of share changed

□ Applicable √ Not applicable

Progress of shares buy-back

□ Applicable √ Not applicable

33深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Implementation progress of reducing holdings of shares buy-back by centralized bidding

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common

shareholders of Company in latest year and period

□ Applicable √ Not applicable

Other information necessary to disclose or need to disclosed under requirement from security regulators

□ Applicable √ Not applicable

2. Changes of lock-up stocks

□ Applicable √ Not applicable

II. Securities issuance and listing

□ Applicable √ Not applicable

III. Amount of shareholders of the Company and particulars about shares holding

Unit: Share

Total preference shareholders

Total common stock shareholders in with voting rights recovered at

524270

reporting period-end end of reporting period (if

applicable) (see note 8)

Particulars about common shares held above 5% by shareholders or top ten common shareholders

Amou Amount Information of shares

Amount of nt of of pledged tagged or frozen

Propor common restric common

Nature of Changes

tion of shares held ted shares

Full name of Shareholders sharehold in report

shares at the end of comm held State of

er period Amount

held reporting on without share

period shares restricti

held on

Domestic

Shenzhen Guosheng non-state-

11.52635087

Energy Investment owned 63508747 0 0

%47

Development Co. Ltd. legal

person

Foreign

UOB Koy Hian (Hong 159078

legal 2.89% 15907850 0 0

Kong) Co. Ltd. 50

person

34深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Foreign

Guosen Securities (Hong 139094

legal 2.52% 13909425 0 0

Kong) brokerage Co. Ltd 25

person

Shenwan Hongyuan Foreign

828115

Securities (Hong Kong) legal 1.50% 8281156 0 0

Co. Ltd. person

Domestic

non-state-

Lhasa Xingqing Network 460025

owned 0.83% 4600255 0 0

Technology Co. Ltd. 5

legal

person

Domestic

389112

Li Huili nature 0.71% 3891124 0 0

person

Domestic

388648

Xu Hongbo nature 0.70% 3886485 959166 0

person

Domestic

302295

Ge Zhiqiong nature 0.55% 3022952 -502200 0

person

State-

owned 293413

CMS Hong Kong Co. Ltd 0.53% 2934135 40000 0

legal 5

person

Shenzhen China Bicycle

Domestic

Company (Holdings)

non-state-

Limited -Special account 260240

owned 0.47% 2602402 0 0

for property disposal of 2

legal

bankrupt enterprise

person

Strategy investors or general

corporation comes top 10 common

N/A

stock shareholders due to rights issue (if

applicable) (see note 3)

Li Huili spouse of the Ji Hanfei the actual controller of he Company- Shenzhen

Guosheng Energy Investment Development Co. Ltd. holding B-share of the Company

Explanation on associated relationship on behalf of Shenzhen Guosheng Energy Investment Development Co. Ltd. beyond

among the aforesaid shareholders that the Company has no idea of whether other circulated shareholders belong to

concerted action persons ruled in the Administration Norms for Information Disclosure

of Change on Shareholding of Shareholders of Listed Companies.Description of the above shareholders

in relation to delegate/entrusted voting N/A

rights and abstention from voting rights.Special note on the repurchase account N/A

35深圳中华自行车（集团）股份有限公司2022年半年度报告全文

among the top 10 shareholders (if

applicable) (see note 11)

Particular about top ten shareholders with un-restrict shares held

Type of shares

Shareholders’ name Amount of un-restrict shares held at Period-end

Type Amount

RMB

Shenzhen Guosheng Energy Investment

63508747 common 63508747

Development Co. Ltd.shares

Domestica

lly listed

UOB Koy Hian (Hong Kong) Co. Ltd. 15907850 15907850

foreign

Domestica

Guosen Securities (Hong Kong) lly listed

1390942513909425

brokerage Co. Ltd foreign

Domestica

Shenwan Hongyuan Securities (Hong lly listed

82811568281156

Kong) Co. Ltd. foreign

RMB

Lhasa Xingqing Network Technology

4600255 common 4600255

Co. Ltd.shares

Domestica

lly listed

Li Huili 3891124 3891124

foreign

RMB

common 959166

Xu Hongbo 3886485 Domestica

lly listed

2927319

foreign

Domestica

lly listed

Ge Zhiqiong 3022952 3022952

foreign

Domestica

lly listed

CMS Hong Kong Co. Ltd 2934135 2934135

foreign

Shenzhen China Bicycle Company RMB

26024021383313

(Holdings) Limited -Special account for common

36深圳中华自行车（集团）股份有限公司2022年半年度报告全文

property disposal of bankrupt enterprise shares

Domestica

lly listed

1219089

foreign

Li Huili spouse of the Ji Hanfei the actual controller of he Company- Shenzhen

Expiation on associated relationship or

Guosheng Energy Investment Development Co. Ltd. holding B-share of the Company

consistent actors within the top 10 un-

on behalf of Shenzhen Guosheng Energy Investment Development Co. Ltd. beyond

restrict shareholders and between top

that the Company has no idea of whether other circulated shareholders belong to

10 un-restrict shareholders and top 10

concerted action persons ruled in the Administration Norms for Information Disclosure

shareholders

of Change on Shareholding of Shareholders of Listed Companies.Explanation on top 10 shareholders

involving margin business (if N/A

applicable) (see note 4)

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back

agreement dealing in reporting period

□ Yes √ No

The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no

buy-back agreement dealing in reporting period.IV. Changes of shares held by directors supervisors and senior executives

□ Applicable √ Not applicable

Shares held by directors supervisors and senior executives have no changes in reporting period found more details in Annual Report

2021.

V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period

□ Applicable √ Not applicable

The Company had no change of controlling shareholder during the reporting period

Change of actual controller during the reporting period

□ Applicable √ Not applicable

The Company had no change of actual controller during the reporting period

37深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section VIII. Preferred Stock

□ Applicable √ Not applicable

The Company had no preferred stock in the Period.

38深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section IX. Corporate Bonds

□ Applicable √ Not applicable

39深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Section X. Financial 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 2022

Unit: RMB/CNY

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 25905133.26 33246957.92

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable

Account receivable 42930643.33 46850083.59

Receivable financing

Accounts paid in advance 510458.38 1300408.57

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 608727.67 494695.27

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 23761043.78 8248573.77

Contractual assets

Assets held for sale

Non-current asset due within one

year

40深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Other current assets 2756079.86 1814200.53

Total current assets 96472086.28 91954919.65

Non-current assets:

Loans and payments on behalf

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment

Investment in other equity

instrument

Other non-current financial assets

Investment real estate

Fixed assets 3277124.92 3439212.00

Construction in progress

Productive biological asset

Oil and gas asset

Right-of-use assets 1269594.86 1505258.90

Intangible assets

Expense on Research and

Development

Goodwill

Long-term expenses to be

apportioned

Deferred income tax asset 64046.67 64046.67

Other non-current asset 400000.00 400000.00

Total non-current asset 5010766.45 5408517.57

Total assets 101482852.73 97363437.22

Current liabilities:

Short-term loans

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable

Account payable 14873529.41 8297306.34

Accounts received in advance

Contractual liability 749240.52 124328.07

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

41深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Wage payable 911253.12 923477.10

Taxes payable 943123.83 911506.52

Other account payable 59820372.70 61407301.04

Including: Interest payable

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within

1341851.661456782.04

one year

Other current liabilities 24930.19 11700.06

Total current liabilities 78664301.43 73132401.17

Non-current liabilities:

Insurance contract reserve

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability 38957.32 228302.37

Long-term account payable

Long-term wages payable

Accrual liability

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 38957.32 228302.37

Total liabilities 78703258.75 73360703.54

Owner’s equity:

Share capital 551347947.00 551347947.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 627834297.85 627834297.85

Less: Inventory shares

Other comprehensive income

Reasonable reserve

Surplus public reserve 32673227.01 32673227.01

Provision of general risk

Retained profit -1204420298.12 -1202936933.70

Total owner’ s equity attributable to 7435173.74 8918538.16

42深圳中华自行车（集团）股份有限公司2022年半年度报告全文

parent company

Minority interests 15344420.24 15084195.52

Total owner’ s equity 22779593.98 24002733.68

Total liabilities and owner’ s equity 101482852.73 97363437.22

Legal Representative: Li Hai

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

2. Balance Sheet of Parent Company

Unit: RMB/CNY

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 2504258.22 7613043.60

Trading financial assets

Derivative financial assets

Note receivable

Account receivable 17186565.61 22842513.86

Receivable financing

Accounts paid in advance 1889.16 586425.80

Other account receivable 8980786.26 70451.01

Including: Interest receivable

Dividend receivable

Inventories 66003.39 73037.28

Contractual assets

Assets held for sale

Non-current assets maturing within

one year

Other current assets 968339.37 1814200.53

Total current assets 29707842.01 32999672.08

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 19960379.73 19960379.73

Investment in other equity

instrument

Other non-current financial assets

Investment real estate

Fixed assets 3134743.32 3265329.99

Construction in progress

43深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Productive biological assets

Oil and natural gas assets

Right-of-use assets 263508.41 421613.45

Intangible assets

Research and development costs

Goodwill

Long-term deferred expenses

Deferred income tax assets

Other non-current assets 400000.00 400000.00

Total non-current assets 23758631.46 24047323.17

Total assets 53466473.47 57046995.25

Current liabilities:

Short-term borrowings

Trading financial liability

Derivative financial liability

Notes payable

Account payable 146722.80 364394.75

Accounts received in advance

Contractual liability 180885.40 90000.44

Wage payable 655004.75 561350.41

Taxes payable 56854.82 15603.18

Other accounts payable 51254855.64 52710433.54

Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due within

280216.79323646.60

one year

Other current liabilities 23515.10 11700.06

Total current liabilities 52598055.30 54077128.98

Non-current liabilities:

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability 121974.19

Long-term account payable

Long term employee compensation

payable

Accrued liabilities

Deferred income

Deferred income tax liabilities

Other non-current liabilities

44深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Total non-current liabilities 121974.19

Total liabilities 52598055.30 54199103.17

Owners’ equity:

Share capital 551347947.00 551347947.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 627834297.85 627834297.85

Less: Inventory shares

Other comprehensive income

Special reserve

Surplus reserve 32673227.01 32673227.01

Retained profit -1210987053.69 -1209007579.78

Total owner’s equity 868418.17 2847892.08

Total liabilities and owner’s equity 53466473.47 57046995.25

3. Consolidated Profit Statement

Unit: RMB/CNY

Item Semi-annual of 2022 Semi-annual of 2021

I. Total operating income 106665446.58 54130317.60

Including: Operating income 106665446.58 54130317.60

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 108203953.12 54197658.54

Including: Operating cost 100215639.64 48590120.12

Interest expense

Commission charge and

commission expense

Cash surrender value

Net amount of expense of

compensation

Net amount of withdrawal of

insurance contract reserve

Bonus expense of guarantee

slip

Reinsurance expense

Tax and extras 42512.73 41264.77

Sales expense 2423889.53 876189.13

Administrative expense 4855763.49 2619117.48

45深圳中华自行车（集团）股份有限公司2022年半年度报告全文

R&D expense 694172.50 2120389.55

Financial expense -28024.77 -49422.51

Including: Interest

expenses

Interest income -47897.11 -74408.45

Add: Other income 153395.80 2516.00

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

-42610.481318717.42

(Loss is listed with “-”)

Losses of devaluation of asset

27669.02

(Loss is listed with “-”)

Income from assets disposal

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

-1427721.221281561.50

“-”)

Add: Non-operating income 224228.84 457664.40

Less: Non-operating expense

IV. Total profit (Loss is listed with “-”) -1203492.38 1739225.90

Less: Income tax expense 19647.32 161386.48

V. Net profit (Net loss is listed with “-”) -1223139.70 1577839.42

(i) Classify by business continuity

1.continuous operating net profit

-1223139.701577839.42(net loss listed with ‘-”)

2.termination of net profit (net losslisted with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s

-1483364.421365493.34

of parent company

2.Minority shareholders’ gains and

260224.72212346.08

losses

VI. Net after-tax of other comprehensive

income

46深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Net after-tax of other comprehensive

income attributable to owners of parent

company

(I) Other comprehensive income

items which will not be reclassified

subsequently to profit of loss

1.Changes of the defined

benefit plans that re-measured

2.Other comprehensive

income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of

investment in other equity instrument

4.Fair value change of

enterprise's credit risk

5. Other

(ii) Other comprehensive income

items which will be reclassified

subsequently to profit or loss

1.Other comprehensive

income under equity method that can

transfer to gain/loss

2.Change of fair value of

other debt investment

3.Amount of financial assets

re-classify to other comprehensive

income

4.Credit impairment

provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences

arising on translation of foreign currency

financial statements

7.Other

Net after-tax of other comprehensive

income attributable to minority

shareholders

VII. Total comprehensive income -1223139.70 1577839.42

Total comprehensive income

-1483364.421365493.34

attributable to owners of parent Company

Total comprehensive income

260224.72212346.08

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share -0.0027 0.0025

47深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(ii) Diluted earnings per share -0.0027 0.0025

Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and

realized 0 Yuan at last period for combined party

Legal Representative: Li Hai

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

4. Profit Statement of Parent Company

Unit: RMB/CNY

Item Semi-annual of 2022 Semi-annual of 2021

I. Operating income 5996233.35 12378683.92

Less: Operating cost 5911047.94 10513040.90

Taxes and surcharge 3461.00 6780.60

Sales expenses 208571.68 342616.35

Administration expenses 1657764.39 1308649.65

R&D expenses 694172.50 985885.21

Financial expenses 376.23 -56817.01

Including: Interest

expenses

Interest income 8757.31 65092.61

Add: Other income 126559.52 2501.91

Investment income (Loss is

listed with “-”)

Including: Investment income

on affiliated Company and joint venture

The termination of

income recognition for financial assets

measured by amortized cost (Loss is

listed with “-”)

Net exposure hedging income

(Loss is listed with “-”)

Changing income of fair

value (Loss is listed with “-”)

Loss of credit impairment

373126.961209451.29

(Loss is listed with “-”)

Losses of devaluation of asset

27669.02

(Loss is listed with “-”)

Income on disposal of assets

(Loss is listed with “-”)

II. Operating profit (Loss is listed with -1979473.91 518150.44

48深圳中华自行车（集团）股份有限公司2022年半年度报告全文

“-”)

Add: Non-operating income 457664.40

Less: Non-operating expense

III. Total Profit (Loss is listed with “-”) -1979473.91 975814.84

Less: Income taxIV. Net profit (Net loss is listed with “--1979473.91975814.84

”)

(i) continuous operating net profit

-1979473.91975814.84(net loss listed with ‘-”)

(ii) termination of net profit (netloss listed with ‘-”)

V. Net after-tax of other comprehensive

income

(i) Other comprehensive income

items which will not be reclassified

subsequently to profit of loss

1.Changes of the defined

benefit plans that re-measured

2.Other comprehensive

income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of

investment in other equity instrument

4.Fair value change of

enterprise's credit risk

5. Other

(ii) Other comprehensive income

items which will be reclassified

subsequently to profit or loss

1.Other comprehensive

income under equity method that can

transfer to gain/loss

2.Change of fair value of

other debt investment

3.Amount of financial

assets re-classify to other

comprehensive income

4.Credit impairment

provision for other debt investment

5.Cash flow hedging

reserve

6.Translation differences

arising on translation of foreign

currency financial statements

49深圳中华自行车（集团）股份有限公司2022年半年度报告全文

7.Other

VI. Total comprehensive income -1979473.91 975814.84

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: RMB/CNY

Item Semi-annual of 2022 Semi-annual of 2021

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 121516272.43 56072881.75

services

Net increase of customer deposit

and interbank deposit

Net increase of loan from central

bank

Net increase of capital borrowed

from other financial institution

Cash received from original

insurance contract fee

Net cash received from reinsurance

business

Net increase of insured savings

and investment

Cash received from interest

commission charge and commission

Net increase of capital borrowed

Net increase of returned business

capital

Net cash received by agents in sale

and purchase of securities

Write-back of tax received 12115.99 2666.96

Other cash received concerning

8729547.228732027.81

operating activities

Subtotal of cash inflow arising from

130257935.6464807576.52

operating activities

Cash paid for purchasing

commodities and receiving labor 121691508.77 51386530.21

service

Net increase of customer loans and

advances

50深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Net increase of deposits in central

bank and interbank

Cash paid for original insurance

contract compensation

Net increase of capital lent

Cash paid for interest commission

charge and commission

Cash paid for bonus of guarantee

slip

Cash paid to/for staff and workers 4158381.02 4600762.58

Taxes paid 606498.30 606781.27

Other cash paid concerning

13081024.0710660629.28

operating activities

Subtotal of cash outflow arising from

139537412.1667254703.34

operating activities

Net cash flows arising from operating

-9279476.52-2447126.82

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

36959.635957.99

intangible and other long-term assets

Cash paid for investment

Net increase of mortgaged loans

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

Subtotal of cash outflow from investing

36959.635957.99

activities

Net cash flows arising from investing

-36959.63-5957.99

activities

51深圳中华自行车（集团）股份有限公司2022年半年度报告全文

III. Cash flows arising from financing

activities:

Cash received from absorbing

investment

Including: Cash received from

absorbing minority shareholders’

investment by subsidiaries

Cash received from loans

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

activities

Cash paid for settling debts

Cash paid for dividend and profit

distributing or interest paying

Including: Dividend and profit of

minority shareholder paid by

subsidiaries

Other cash paid concerning

245979.70

financing activities

Subtotal of cash outflow from financing

245979.70

activities

Net cash flows arising from financing

-245979.70

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

-9562415.85-2453084.81

equivalents

Add: Balance of cash and cash

33246957.9219887978.05

equivalents at the period -begin

VI. Balance of cash and cash

23684542.0717434893.24

equivalents at the period -end

6. Cash Flow Statement of Parent Company

Unit: RMB/CNY

Item Semi-annual of 2022 Semi-annual of 2021

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 10765611.52 8529883.80

services

Write-back of tax received 3514.92 2652.02

52深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Other cash received concerning

13130352.748894920.39

operating activities

Subtotal of cash inflow arising from

23899479.1817427456.21

operating activities

Cash paid for purchasing

commodities and receiving labor 4165593.61 5583811.46

service

Cash paid to/for staff and workers 1015793.35 3163849.78

Taxes paid 50875.97 109766.66

Other cash paid concerning

25816755.859160530.15

operating activities

Subtotal of cash outflow arising from

31049018.7818017958.05

operating activities

Net cash flows arising from operating

-7149539.60-590501.84

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

4900.975957.99

intangible and other long-term assets

Cash paid for investment

Net cash received from

subsidiaries and other units obtained

Other cash paid concerning

investing activities

Subtotal of cash outflow from investing

4900.975957.99

activities

Net cash flows arising from investing

-4900.97-5957.99

activities

III. Cash flows arising from financing

activities:

Cash received from absorbing

53深圳中华自行车（集团）股份有限公司2022年半年度报告全文

investment

Cash received from loans

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

activities

Cash paid for settling debts

Cash paid for dividend and profit

distributing or interest paying

Other cash paid concerning

174936.00

financing activities

Subtotal of cash outflow from financing

174936.00

activities

Net cash flows arising from financing

-174936.00

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

-7329376.57-596459.83

equivalents

Add: Balance of cash and cash

7613043.6010097024.59

equivalents at the period -begin

VI. Balance of cash and cash

283667.039500564.76

equivalents at the period -end

7. Statement of Changes in Owners’ Equity (Consolidated)

Current Amount

Unit: RMB/CNY

Semi-annual of 2022

Owners’ equity attributable to the parent Company

Other

equity instrument Other

Minori Total

Perpe Less: compr Provisi

Item Share Reaso Surplu Retain ty owners

tual Capital Invent ehensi on of Subtot

capita Prefe nable s ed Other interes ’

capit reserve ory ve genera al

l rred Other reserve reserve profit ts equity

al shares incom l risk

stock

secur e

ities

I. The ending 5513 62783 32673 15084 24002

12028918

balance of the 4794 4297. 227.0 195.5 733.6

93693538.16

previous year 7.00 85 1 2 8

3.70

Add:

54深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Changes of

accounting

policy

Error

correction of the

last period

Enterprise

combine under

the same control

Other

II. The -

551362783326731508424002

beginning 1202 8918

47944297.227.0195.5733.6

balance of the 93693 538.16

7.0085128

current year 3.70

III. Increase/

Decrease in the - - -

26022

period 1483 1483 1223

4.72

(Decrease is 364.42 364.42 139.70

listed with “-”)

(i) Total - - -

26022

comprehensive 1483 1483 1223

4.72

income 364.42 364.42 139.70

(ii) Owners’

devoted and

decreased

capital

1.Common

shares invested

by shareholders

2. Capital

invested by

holders of other

equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

(iii) Profit

distribution

1. Withdrawal

of surplus

55深圳中华自行车（集团）股份有限公司2022年半年度报告全文

reserves

2. Withdrawal

of general risk

provisions

3. Distribution

for owners (or

shareholders)

4. Other

(iv) Carrying

forward internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(v) Reasonable

reserve

1. Withdrawal

in the report

period

2. Usage in the

report period

(vi) Others

56深圳中华自行车（集团）股份有限公司2022年半年度报告全文

IV. Balance at 5513 62783 32673 15344 22779

12047435

the end of the 4794 4297. 227.0 420.2 593.9

42029173.74

period 7.00 85 1 4 8

8.12

Amount of the previous period

Unit: RMB/CNY

Semi-annual of 2021

Owners’ equity attributable to the parent Company

Other

equity instrument Other

Minorit

Perp Less: compr Provisi Total

Item Share Reaso Surplu Retain y

etual Capital Invent ehensi on of Subtot owners’

capita Prefe nable s ed Other interest

capit reserve ory ve genera al equity

l rred Other reserve reserve profit s

al shares incom l risk

stock

secur e

ities

I. The ending 5513 62783 32673 10905

12001473725642

balance of the 4794 4297. 227.0 230.9

95024058.70289.68

previous year 7.00 85 1 8

0.88

Add:

Changes of

accounting

policy

Error

correction of

the last period

Enterprise

combine under

the same

control

Other

II. The -

5513627833267310905

beginning 1200 14737 25642

47944297.227.0230.9

balance of the 95024 058.70 289.68

7.008518

current year 0.88

III. Increase/

Decrease in the

1365136521234615778

period

493.34493.34.0839.42

(Decrease is

listed with “-”)

(i) Total

1365136521234615778

comprehensive

493.34493.34.0839.42

income

57深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(ii) Owners’

devoted and

decreased

capital

1.Common

shares invested

by shareholders

2. Capital

invested by

holders of other

equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

(iii) Profit

distribution

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general risk

provisions

3. Distribution

for owners (or

shareholders)

4. Other

(iv) Carrying

forward

internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

58深圳中华自行车（集团）股份有限公司2022年半年度报告全文

3. Remedying

loss with

surplus reserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(v) Reasonable

reserve

1. Withdrawal

in the report

period

2. Usage in the

report period

(vi) Others

IV. Balance at 5513 62783 32673 12270

11991494927220

the end of the 4794 4297. 227.0 724.3

58474404.78129.10

period 7.00 85 1 2

7.54

8. Statement of Changes in Owners’ Equity (Parent Company)

Current Amount

Unit: RMB/CNY

Semi-annual of 2022

Other

equity instrument

Other

Perpet Less: Reasona Total

Item Share Capital compreh Surplus Retaine

Preferr ual Inventor ble Other owners’

capital reserve ensive reserve d profit

ed capital Other y shares reserve equity

income

stock securiti

I. The ending 55134

627834326732120902847892.

balance of the 7947.0

297.8527.0107579.08

previous year 0

59深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Add: Changes

of accounting

policy

Error

correction of the

last period

Other

II. The -

55134

beginning 627834 326732 12090 2847892.

7947.0

balance of the 297.85 27.01 07579. 08

current year 78

III. Increase/

Decrease in the

197941979473.

period (Decrease

73.9191

is listed with “-”)

(i) Total - -

comprehensive 19794 1979473.income 73.91 91

(ii) Owners’

devoted and

decreased capital

1.Common

shares invested

by shareholders

2. Capital

invested by

holders of other

equity

instruments

3. Amount

reckoned into

owners equity

with share-based

payment

4. Other

(iii) Profit

distribution

1. Withdrawal of

surplus reserves

2. Distribution

for owners (or

shareholders)

3. Other

(iv) Carrying

60深圳中华自行车（集团）股份有限公司2022年半年度报告全文

forward internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with surplus

reserve

4. Carry-over

retained earnings

from the defined

benefit plans

5. Carry-over

retained earnings

from other

comprehensive

income

6. Other

(v) Reasonable

reserve

1. Withdrawal in

the report period

2. Usage in the

report period

(vi) Others

IV. Balance at 55134

62783432673212109868418.1

the end of the 7947.0

297.8527.0187053.7

period 0

Amount of the previous period

Unit: RMB/CNY

Semi-annual of 2021

Other

equity instrument Less: Total

Item Share Capital compre Reasonab Surplus Retained

Preferr Perpet Inventor Other owners’

capital reserve hensive le reserve reserve profit

ed ual Other y shares equity

income

stock capital

61深圳中华自行车（集团）股份有限公司2022年半年度报告全文

securit

ies

I. The ending 55134 -

627834326735264924.2

balance of the 7947. 1206590

297.85227.018

previous year 00 547.58

Add:

Changes of

accounting

policy

Error

correction of

the last period

Other

II. The

55134-

beginning 627834 32673 5264924.2

7947.1206590

balance of the 297.85 227.01 8

00547.58

current year

III. Increase/

Decrease in the

975814.8

period 975814.84

(Decrease is

listed with “-”)

(i) Total

975814.8

comprehensive 975814.84

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

62深圳中华自行车（集团）股份有限公司2022年半年度报告全文

distribution

1. Withdrawal

of surplus

reserves

2. Distribution

for owners (or

shareholders)

3. Other

(iv) Carrying

forward internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(v) Reasonable

reserve

1. Withdrawal

in the report

period

2. Usage in the

report period

(vi) Others

63深圳中华自行车（集团）股份有限公司2022年半年度报告全文

IV. Balance at 55134 -

627834326736240739.1

the end of the 7947. 1205614

297.85227.012

period 00 732.74

III. Company Profile

1. History and basic information

According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen

Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) 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

551347947.00 Yuan.

Legal representative: Li Hai

Location: No. 3008 Buxin Road 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-wheelers 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).

64深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Main products or services currently offered are: EMMELLE bicycles electrical bicycles lithium battery material

and gold jewelry.

3. Release of the financial report

The Financial Report was approved at the 40th Session of 10th BOD of the Company on August 24 2022.The Company has two subsidiaries and one sub-subsdiary included in the scope of consolidated financial

statement refer to the Note VIII. Change of Consolidate Scope and Note IX. Equity in other entity.IV. Compilation Basis of Financial Statement

1. Compilation Basis

The financial statement is prepared based on continuing operation assumptions and according to actual

occurrence in line with relevant accounting rules and follow important accounting policy and estimation.

2. Going concern

On 11 May 2012 the largest shareholder and biggest creditor of the Company Shenzhen Guosheng Energy

Investment Development Co. Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the

Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012

Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy

according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012

Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 according

to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling appointed King & Wood (Shenzhen)

Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co. Ltd. as the custodians of the Company. On the same

day Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1

written decision and approved the Company to manage property and business affairs by itself under the

supervision of custodians according to the law. On 5 November 2013 the Shenzhen Intermediate People’s Court

(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the

Company. On 27 December 2013 the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen

Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of

the Company closed down.The Company has solved the debt problem by reforming realized the net assets with positive value the main

business of bicycle is able to be maintained and realizes the stable development. The Company has set up the

conditions for introducing the recombination party in the reforming plan and expects to restore the abilities of

65深圳中华自行车（集团）股份有限公司2022年半年度报告全文

sustainable operation and sustained profitability by reorganization. The conditions of introducing the

recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan the net assets

in the same year for implementing the major reorganization should be no less than 200 million Yuan.As of the date of financial report of first half of 2022 the Company has not introduced any restructuring parties.V. Main accounting policy and Accounting Estimate

Tips for specific accounting policy and estimate:

N/A

1. Declaration on compliance with accounting standards for business enterprise

The financial statement prepared by the Company based on follow compilation basis is comply with the

requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application

guide commentate as well as other regulations (collectively referred to as Accounting Standards for Business

Enterprise) which is reflect a real and truth financial status of the Company as well as operation results and cash

flow situations.Furthermore the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014

Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.

453)

2. Accounting period

Calendar year is the accounting period for the Company which is starting from 1 January to 31 December.

3. Business cycles

The business period for the Company which is the Gregorian calendar starting from 1 January to 31 December

4. Book-keeping currency

The Company and its subsidiaries take RMB as the standard currency for bookkeeping.

5. Accounting treatment for business combinations under the same control and those not under the same

control

(1) Accounting treatment for business combinations under the same control and those not under the same control

For a business merger that is under the same control and is achieved by the Company through one single

66深圳中华自行车（集团）股份有限公司2022年半年度报告全文

transaction or multiple transactions assets and liabilities obtained from that business combination shall be

measured at their book value at the combination date as recorded by the party being absorbed in the consolidated

financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between

the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value

of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for

offset.

(2) Accounting treatment for Enterprise combine not under the same control

The Company will validate the difference that the combined cost is more than the fair value of the net identifiable

assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair

value of net identifiable assets gained from the acquiree during business combination the fair value and combined

cost of various identifiable assets liabilities and contingent liabilities from the acquiree must be rechecked. Where

the combined cost is after the recheck still less than the fair value of net identifiable assets gained from the

acquiree during business combination the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactions and by steps

the Company shall make accounting treatment as follows:

1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before the

acquisition date accounted according to the equity method re-measurement is carried out according to the fair

value of the equity on the acquisition date. The balance between the fair value and the book value is included in

the current investment income. If the acquiree’s stock equities held before the acquisition date involves changes of

other comprehensive incomes and other owner's equities under accounting with the equity method the balance

between the fair value and the book value is included in the current investment income on the acquisition date

excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets

of the defined benefit plan.

2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term

equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary

shared on the acquisition date. If the former is greater than the latter the balance is confirmed as goodwill; if the

former is less than the latter the balance is included in the current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in

stages

(1)In determining whether to account for the multiple transactions as a single transaction

A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of

the following may indicate that the parent should account for the multiple arrangements as a single transaction:

1) Arrangements are entered into at the same time or in contemplation of each other;

2) Arrangements work together to achieve an overall commercial effect;

67深圳中华自行车（集团）股份有限公司2022年半年度报告全文

3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;

4)One arrangement considered on its own is not economically justified but it is economically justified when

considered together with other arrangements.

(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions which

eventually results in loss of control the subsidiary during disposal of its subsidiary in stages

If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control

the subsidiary these multiple transactions should be accounted for as a single transaction. In the consolidated

financial statements the difference between the consideration received and the corresponding percentage of the

subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive

income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at

the date when control is lost. The difference between the total amount of consideration received from the

transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share

of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based

on the previous shareholding proportion shall be recognized as investment income for the current period when

control is lost. The amount previously recognized in other comprehensive income in relation to the former

subsidiary’s equity investment should be transferred to investment income for the current period when control is

lost

(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which

eventually results in loss of control the subsidiary during disposal of its subsidiary in stages

If the Company doesn't lose control of investee the difference between the amount of the consideration received

and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equity

premium) in the consolidated financial statements.If the Company loses control of investee the remaining equity investment shall be re-measured at its fair value in

the consolidated financial statements at the date when control is lost. The difference between the total amount of

consideration received from the transaction that resulted in the loss of control and the fair value of the remaining

equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition

date or combination date based on the previous shareholding percentage shall be recognized as investment

income for the current period when control is lost. The amount previously recognized in other comprehensive

income in relation to the former subsidiary’s equity investment should be transferred to investment income for the

current period when control is lost.

6. Compilation method of consolidated financial statement

Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for

Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent

company and its subsidiaries and other related information.

68深圳中华自行车（集团）股份有限公司2022年半年度报告全文

When consolidating the financial statements the following items are eliminated: internal equity investment and

owners’ equity of subsidiaries proceeds on internal investments and profit distribution of subsidiaries internal

transactions internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent

company.

7. Classification of joint venture arrangement and accounting treatment for joint control

(1) Affirmation and classification of joint venture arrangement

Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture

arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more

participants carry out joint control on implementation of the arrangement. Any participant cannot control the

arrangement independently. Any participant for joint control can stop other participants or participant

combinations to independently control the arrangement.Joint control refers to the sharing of control over certain arrangement under related agreements and related

activities of the arrangement must be determined only when obtaining the unanimous consent of the parties

sharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an

arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the

arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of

the arrangement.

(2) Accounting treatment of joint venture arrangement

Joint venture participants should confirm the following items related to interest shares in joint venture and carry

out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:

1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities

borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after

selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on

shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on

shares.Joint venture participants should carry out accounting settlement for investments of the joint venture according to

provisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.

8. Recognition of cash and cash equivalents

Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalents

refer to the short-term (generally due within three months since the date of purchase) highly liquid investments

that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in

69深圳中华自行车（集团）股份有限公司2022年半年度报告全文

value.

9. Foreign currency transaction and financial statement conversion

(1)Conversion for foreign currency transaction

When initially recognized the foreign currency for the transaction shall be converted into CNY amount according

to the spot exchange rate on the date of transaction. For the foreign currency monetary items conversion must be

based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different

exchange rates except for the exchange difference of principal and interest incurred due to foreign currency loan

related to acquisition or construction of assets that qualify for capitalization shall be charged to current profits and

losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot

exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items

measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value

and the difference shall be charged to current profits and losses or other comprehensive income.

(2)Conversion of financial statements presented in foreign currencies

The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet

date; the owner’s equity items except for the items of “undistributed profit” shall be converted at the spot

exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted

at the spot exchange rate on the transaction date. The translation difference of foreign financial statements

conducted as above is recognized as other comprehensive incomes.

10. Financial instruments

(1) Recognition and termination for financial instrument

Financial assets or financial liabilities are recognized when the Group becomes a party to the contractual

provisions of the instrument.When buying and selling financial assets in a conventional manner recognize and derecognize them according to

the accounting of the trading day. Buying and selling financial assets in a conventional manner refers to the

collection or delivery of financial assets in accordance with the contract terms and within the period prescribed by

regulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sell

financial assets.When meeting the following conditions derecognize a financial asset (or part of a financial asset or part of a

group of similar financial assets) i.e. to write off from its account and balance sheet:

1) The right to receive cash flows from financial assets expires;

2) The right to receive cash flows of financial assets is transferred or assume the obligation to pay the full amount

70深圳中华自行车（集团）股份有限公司2022年半年度报告全文

of cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtually

transferred almost all risks and rewards of the ownership of financial assets or (b) although virtually neither

transferred nor retained almost all risks and rewards of the ownership of financial assets abandoned the control of

the financial assets.

(2) Classification and measurement of financial assets

The Company’s financial assets are classified as financial assets measured at amortized cost financial assets

measured at fair value and whose changes are included in other comprehensive income and financial assets

measured at fair value and whose changes are included in the current profit and loss according to the Company’s

business model for managing financial assets and the contractual cash flow characteristics of financial assets at

initial recognition. The subsequent measurement of financial assets depends on their classification.The Company’s classification of financial assets is based on the Company’s business model for managing

financial assets and the cash flow characteristics of financial assets.

1) Financial assets measured at amortized cost

Financial assets that meet the following conditions at the same time are classified as financial assets measured at

amortized cost: the Company’s business model for managing this financial asset is to collect contractual cash

flows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the

payment of principal and interest based on the outstanding principal amount. For such financial assets the actual

interest rate method is used for subsequent measurement based on amortized cost and the gains or losses arising

from amortization or impairment are included in the current profit and loss.

2) Debt instrument investments measured at fair value and whose changes are included in other comprehensive

income

Financial assets that meet the following conditions at the same time are classified as financial assets measured at

fair value and whose changes are included in other comprehensive income: the Company’s business model for

managing this financial asset is to both collect contractual cash flows and sell the financial assets; the contract

terms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment of

principal and interest based on the outstanding principal amount. For such financial assets fair value is used for

subsequent measurement. The discount or premium is amortized by using the actual interest method and is

recognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreign

currency monetary financial assets are recognized as current gains and losses changes in the fair value of such

financial assets are recognized as other comprehensive income until the financial asset is derecognized its

cumulative gains or losses are transferred to the current profit and loss. Interest income related to such financial

assets is included in the current profit and loss.

3) Equity instrument investments measured at fair value and whose changes are included in other comprehensive

income

The Company irrevocably chooses to designate some non-trading equity instrument investments as financial

assets measured at fair value and whose changes are included in other comprehensive income. Only relevant

71深圳中华自行车（集团）股份有限公司2022年半年度报告全文

dividend income is included in the current profit and loss and changes in fair value are recognized as other

comprehensive income until the financial asset is derecognized its accumulated gains or losses are transferred to

retained earnings.

4) Financial assets measured at fair value and whose changes are included in the current profit and loss

Financial assets except for above financial assets measured at amortized cost and financial assets measured at fair

value and whose changes are included in other comprehensive income are classified as financial assets measured

at fair value and whose changes are included in the current profit and loss. During initial recognition in order to

eliminate or significantly reduce accounting mismatches financial assets can be designated as financial assets

measured at fair value and whose changes included in the current profit and loss. For such financial assets fair

value is used for subsequent measurement and all changes in fair value are included in the current profit and loss.When and only when the Company changes its business model for managing financial assets it will reclassify all

affected related financial assets.For financial assets measured at fair value and whose changes are included in the current profit or loss the related

transaction costs are directly included in the current profit and loss and the related transaction costs of other types

of financial assets are included in the initial recognition amount.

(3) Classification and measurement of financial liabilities

The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financial

liabilities measured at fair value and whose changes are included in the current profit and loss at initial recognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at

fair value and whose changes are included in current profit or loss during initial measurement: (1) This

designation can eliminate or significantly reduce accounting mismatches; (2) According to the group risk

management or investment strategies stated in official written documents management and performance

evaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted based

on fair value and are reported to key management personnel within the group on this basis; (3) The financial

liability includes embedded derivatives that need to be split separately.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that

are measured at fair value and whose changes are included in the current profit or loss the related transaction

costs are directly included in the current profit and loss and the related transaction costs of other financial

liabilities are included in its initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:

1) Financial liabilities measured at amortized cost

For such financial liabilities adopt actual interest rate method and make subsequent measurements based on

amortized costs.

2) Financial liabilities measured at fair value and whose changes are included in the current profit and loss

Financial liabilities that are measured at fair value and whose changes are included in the current profit or loss

include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities

designated to be measured at fair value at the initial recognition and whose changes are included in the current

profit or loss.

72深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(4) Financial instruments offset

If the following conditions are met at the same time the financial assets and financial liabilities are listed in the

balance sheet with the net amount after mutual offset: legal right to offset the confirmed amount and this legal

right is currently executable; Net settlement or simultaneous realization of the financial assets and liquidation of

the financial liabilities.

(5) Impairment of financial assets

The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at

amortized cost debt instrument investments measured at fair value and whose changes are included in other

comprehensive income and financial guarantee contracts. Credit loss refers to the difference between all

contractual cash flows receivable under the contract and discounted according to original actual interest rate by

the Company and all expected receivable cash flows that is the present value of all cash shortages.The Company considers all reasonable and evidence-based information including forward-looking information

and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measured

at fair value and whose changes are included in other comprehensive income (debt instruments) in a single or

combined manner.

1) General model of expected credit loss

If the credit risk of the financial instrument has increased significantly since the initial recognition the Company

measures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financial

instrument for the entire duration; if the credit risk of the financial instrument has not significantly increased since

the initial recognition the Company measures its loss provisions in accordance with the amount equivalent to the

expected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amount

of the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’sspecific assessment of credit risk please see details in Note IX. Risks Related to Financial Instruments”.Generally the Company believes that the credit risk of the financial instrument has significantly increased when it

exceeds 30 days after the due date unless there is concrete evidence that the credit risk of the financial instrument

has not increased significantly since initial recognition.Specifically the Company divides the process of credit impairment of financial instruments of which no credit

impairment has occurred at the time of purchase or origin into three stages. There are different accounting

treatment methods for the impairment of financial instruments at different stages:

Stage one: Credit risk has not increased significantly since initial recognition

For a financial instrument at this stage the enterprise should measure the loss provisions according to the

expected credit losses in the next 12 months and calculate the interest income based on its book balance (that is

without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset the

same below).Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred

For a financial instrument at this stage the enterprise should measure the loss provisions according to the

expected credit loss of the instrument for its entire duration and calculate the interest income based on its book

balance and actual interest rate.

73深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Stage three: Credit impairment occurs after initial recognition

For a financial instrument at this stage the enterprise should measure the loss provisions based on the expected

credit losses of the instrument for its entire duration but the calculation of interest income is different from the

financial assets at the previous two stages. For financial assets that have suffered credit impairment the enterprise

should calculate interest income based on its amortized cost (book balance minus the provisions for impairment

i.e. book value) and the actual interest rate.For financial assets that have suffered credit impairment at the time of purchase or origin the enterprise should

only recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions

and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.

2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet date

with its credit risk at initial recognition but directly makes the assumption that the credit risk of the instrument

has not increased significantly since the initial recognition.If the enterprise confirms that the default risk of financial instruments is low the borrower has a strong ability to

fulfill its contractual cash flow obligations in the short term and even if there are adverse changes in the economic

situation and operating environment in a longer period of time it will not necessarily reduce the borrower’s ability

to fulfill its contractual cash flow obligations then the financial instrument can be considered to have lower credit

risk.

3) Accounts receivable and lease receivables

The Company adopts the simplified model of expected credit loss for accounts receivables specified in

“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant 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.The Company makes accounting policy choices for the receivables containing significant financing components

and the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases” and

chooses to adopt the simplified model of expected credit losses that is to measure the loss provisions in

accordance with the amount of expected credit losses throughout the entire duration.

(6) Transfer of financial assets

Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to the

transferee the recognition of the financial assets shall be terminated; where almost all risks and rewards in the

ownership of a financial asset are retained the recognition of the financial assets are not terminated.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset it

shall be accounted for as follows: the financial asset should be terminated if the Group waives control over the

asset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset

74深圳中华自行车（集团）股份有限公司2022年半年度报告全文

and recognizes an associated liability if the Group does not waives control over the asset.If the transferred financial assets continue to be involved by providing financial guarantee the assets continue to

be involved shall be recognized according to the lower of the book value of the financial assets and the amount of

financial guarantee. The financial guarantee amount means the maximum amount of consideration received which

will be required to be repaid.The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

N/A

11.Note receivable

The Group adopts the simplified model of expected credit loss for the accounts receivables specified in

“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant 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. The accrual method is as follows:

The Company divides the bills receivable into two types i.e. bank acceptance bills and commercial acceptance

bills portfolios according to the type of financial instruments. For bank acceptance bills the accepting bank pays

the determined amount to the taker or the bearer unconditionally due to the maturity of the bills the overdue credit

loss is low and has not increased significantly since the initial confirmation the Company believes that the risk of

overdue default is 0; for commercial acceptance bills the Company believes that the probability of default is

related to the aging we use a simplified model of expected credit losses that is the allowance for losses is always

measured at the amount of expected credit losses over the entire duration period. Proportion for accrual found

more in the 12. accounting policy and estimate for account receivable in III.

12. Account receivable

The Company adopts the simplified model of expected credit loss for accounts receivables specified in

“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant 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.For accounts receivable that contain a significant financing component the Company chooses to use the

simplified model of expected credit losses that is to always measure its loss provisions according to the amount

of expected credit losses during the entire duration.

75深圳中华自行车（集团）股份有限公司2022年半年度报告全文

1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of

expected credit losses during the entire duration

The Company considers all reasonable and well-founded information including estimates of expected credit

losses on accounts receivable in a single or combined manner.

(1) Account receivable with single significant amount and withdrawal single item bad debt provision

Basis or amount of judgment for account with single significant amount Withdrawal method for bad debt provision of account

receivable with single significant amount

Receivable commercial acceptance bill account receivable and Carry out impairment test separately and withdraw bad debt

other receivables with single amount more than 5 million yuan provision according to the difference between the present value

(including) of future cash flow and its book value

(2) Receivables with provision for bad debts by portfolio

Portfolio determine basis

On the basis of the actual loss rate of the portfolio of

receivables with similar credit risk characteristics which are the

same or similar in the previous year for the single amount of

Age analysis

non-material receivables it is divided into several portfolios

according to the credit risk characteristics together with the

receivables without impairment after the separate test

Other Bank acceptance

In the combination the proportion of bad debt provision withdrawn by aging analysis method is as follow:

Account age Withdrawing proportion of the account receivable

Within one year(one year included)

0.3%

1～2 years (2-year included)

0.3%

2～3 years (3-year included)

0.3%

Over 3 years

100%

Including: determined to be un-collectible To be written off

(3) Account receivable with significant single amount and single provision for bad debts

Basis or amount of judgment for account with single minor amount Withdrawal method for bad debt provision of account

receivable with single minor amount

Receivable commercial acceptance bill account receivable and Carry out impairment test separately and withdraw bad debt

other receivables with single amount less than 5 million yuan provision according to the difference between the present value

(including) and the probability of recall is small by nature of future cash flow and its book value

2. A general model of expected credit loss

Found more in the treatment carry in【10. Financial Instrument】

76深圳中华自行车（集团）股份有限公司2022年半年度报告全文

13. Receivable financing

Financial assets that meet the following conditions at the same time are classified as financial assets measured at

fair value and whose changes are included in other comprehensive income: the CBC’s business model for

managing this financial asset is to both collect contractual cash flows and sell the financial assets; the contract

terms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment of

principal and interest based on the outstanding principal amount.The CBC transfers the receivables held by discounting or endorsement and such operations are more frequent

with large amount involved. The management business models is essentially both the collection of contractual

cash flows and the sales; in accordance with the relevant provision of financial instrument standards classified

them into the financial assets measured at fair value and with its variation reckoned into other comprehensive

income.

14.Other account receivable

Determination method and accounting treatment of the expected credit loss of other account receivable

The Company adopts the simplified model of expected credit loss for accounts receivables specified in

“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant 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.For accounts receivable that contain a significant financing component the Company chooses to use the

simplified model of expected credit losses that is to always measure its loss provisions according to the amount

of expected credit losses during the entire duration.

1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of

expected credit losses during the entire duration

The Company considers all reasonable and well-founded information including estimates of expected credit

losses on accounts receivable in a single or combined manner.

(1) Account receivable with single significant amount and withdrawal single item bad debt provision

Basis or amount of judgment for account with single significant Withdrawal method for bad debt provision of account

amount receivable with single significant amount

Receivable commercial acceptance bill account receivable and Carry out impairment test separately and withdraw bad debt

other receivables with single amount more than 5 million yuan provision according to the difference between the present value

(including) of future cash flow and its book value

77深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(2)Receivables with provision for bad debts by portfolio

Portfolio determine basis

On the basis of the actual loss rate of the portfolio of

receivables with similar credit risk characteristics which are the

same or similar in the previous year for the single amount of

Age analysis

non-material receivables it is divided into several portfolios

according to the credit risk characteristics together with the

receivables without impairment after the separate test

Other Bank acceptance

In the combination the proportion of bad debt provision withdrawn by aging analysis method is as follow:

Account age Withdrawing proportion of other account receivable

Within one year(one year included)

0.3%

1～2 years (2-year included)

0.3%

2～3 years (3-year included)

0.3%

Over 3 years

100%

Including: determined to be un-collectible

To be written off

(3) Account receivable with minor single amount and single provision for bad debts

Basis or amount of judgment for account with single minor Withdrawal method for bad debt provision of account

amount receivable with single minor amount

Receivable commercial acceptance bill account receivable and Carry out impairment test separately and withdraw bad debt

other receivables with single amount less than 5 million yuan provision according to the difference between the present value

(including) and the probability of recall is small by nature of future cash flow and its book value

2. A general model of expected credit loss

Found more in the treatment carry in【10. Financial Instrument】

15. InventoryThe Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

(1) Classification of inventory

The inventory of the CBC refers to such seven classifications as the raw materials product in process goods on

process wrap page low value consumables materials for consigned processing and goods sold.

(2) Valuation of inventories

Inventories are initially measured at cost upon acquisition which includes procurement costs processing costs

78深圳中华自行车（集团）股份有限公司2022年半年度报告全文

and other costs. The prices of inventories are calculated using weighted average method when they are delivered.

(3) Provision for inventory impairment

When a comprehensive count of inventories is done at the end of the period provision for inventory impairment is

allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value

of stock in inventory (including finished products inventory merchandize 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 operation. 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.

(4)Inventory system

Perpetual inventory system is adopted.

16.Contract assets

16.1. Confirmation method and standard of contract assets

The CBC lists contractual assets or contractual liabilities in the balance sheet based on the relationship between

performance obligations and customer payments. The CBC's right to receive consideration for goods or services

transferred to the customer (And that right depends on factors other than the passage of time) is listed as

contractual assets. Contractual assets and contractual liabilities under the same contract are listed as a net amount.The CBC's right to receive consideration from customers unconditionally (only depends on the passage of time) is

listed separately as a receivable.

16.2. Determination and accounting treatment of the expected credit loss for contract assetsDetermination and accounting treatment of the expected credit loss for contract assets found more in Note “10.Financial Instrument”

17.Contract cost

N/A

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18. Assets held for sale

The CBC classifies such corporate components (or non-current assets) that meet the following criteria as held-for-

sale: (1) Disposable immediately under current conditions based on similar transactions for disposals of such

assets or practices for the disposal group; (2) Probable disposal; that is a decision has been made on a plan for

disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a binding purchase

agreement entered into by the Company and other parties which contains transaction price time and adequately

strict punishments for breach of contract provisions which renders the possibility of material adjustment or

revocation of the agreement is extremely minor) and the disposal is expected to be completed within a year.Besides approval from relevant competent authorities or regulatory authorities has been obtained as required by

relevant rules.The expected net residual value of asset held for sale is adjusted by the CBC to reflect its fair value less selling

expense provided that the net amount shall not exceed the original carrying value of the asset. In case that the

original value is higher than the adjusted expected net residual value the difference shall be recorded in profit or

loss for the period as asset impairment loss and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying value

of the goodwill in the disposal group and then offset the carrying value of the non-current assets within the

disposal group based on their respective proportion of their carrying value.In respect of the non-current assets held for sale if the net amount after their fair value less the selling expenses

increased as at the subsequent balance date the reduced amount before will be recovered and reversed in the

assets impairment loss amount recognized after being classified as held for sale and the reversed amount will be

recorded in the current profits or loss. The impairment loss on assets recognized before being classified as held for

sale will not be reversed. In respect of the disposal group held for sale if the net amount after their fair value less

the selling expenses increased as at the subsequent balance date the reduced amount before will be recovered and

reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for

sale and the reversed amount will be recorded in the current profits or loss. The reduced book value of the

goodwill as well as the impairment loss on assets recognized before the non-current assets are classified as held

for sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assets

recognized in the disposal group held for sale will increase the book value in proportion of the book value of each

non-current assets (other than goodwill) in the disposal group.In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary the

investment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement of

the parent company and all the assets and liabilities of the subsidiary shall be classified as held for sale in the

consolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies such

conditions as required for being classified as held for sale notwithstanding part equity investment will be retained

80深圳中华自行车（集团）股份有限公司2022年半年度报告全文

by the Company after such disposal.

19.Debt investment

N/A

20.Other debt investment

N/A

21.Long-term account receivable

N/A

22. Long-term equity investment

(1)Determination of investment costs

1) If it is formed by the business combination under the common control and that the combining party takes cash

payment transfer of non-cash assets assumption of debts or issuance of equity securities as the consolidation

consideration the shares of the book value of the owner’s equity obtained from the combined party on the date of

combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial

investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for

long-term equity investment and the book value of paid consolidation consideration or the total face value of

issued shares (capital premium or equity premium). If capital reserves are insufficient for offset retained earnings

shall be adjusted.As for business combination under the common control realized by the Company through several transactions the

initial investment cost of the investment shall be determined based on the share of the carrying value of the

owners’ equity of the consolidated party as calculated according to the shareholding proportion on the

consolidation date. Difference between initial investment cost and the carrying value of long-term equity

investment before combination and the sum of carrying value of newly paid consideration for additional shares

acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the

balance of capital reserve is insufficient any excess is adjusted to retained earnings.

2) As for long-term equity investment formed from business combination not under common control the fair

value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.

3) Except those ones formed by the business combination for all items obtained by means of cash payment

actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance

of equity securities the fair value of the issued equity securities shall be taken as the initial investment cost. For

81深圳中华自行车（集团）股份有限公司2022年半年度报告全文

those ones invested by investors the value agreed in the investment contract or agreement shall be taken as the

initial investment cost provided that the value agreed in the contract or agreement shall be fair.

(2)Subsequent measurement and profit or loss recognition

For a long-term equity investment where the Company can exercise control over the investee the long-term

investment is accounted for using the cost method in the Company’s financial statements. The equity method is

adopted when the Group has joint control or exercises significant influence on the investee.Under cost method long term equity investment is measured at initial investment cost. Except for the price

actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is

included in the consideration the Company recognizes cash dividends or profits declared by the investee as

current investment gains and determine whether there is impairment on long term investment according to

relevant assets impairment policies.Under equity method when the initial investment cost of the long-term equity investment exceeds the share of fair

value in the net identifiable assets in the investee the difference shall be included in initial investment cost of the

long-term equity investment. When the initial investment cost is lower than the share of fair value in the net

identifiable asset in the investee such difference is recognized in profit or loss for the period with adjustment of

cost of the long-term equity investment.Under equity method after the Company acquires a long-term equity investment it shall in accordance with its

attributable share of the net profit or loss realized by the investee recognize the investment profit or loss and

adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses after

making appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’s

identifiable assets at the acquisition date using the Group’s accounting policies and periods and eliminating the

portion of the profits or losses arising from internal transactions with its joint ventures and associates attributable

to the investing entity according to its shareholding proportion (but impairment losses for assets arising from

internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the

Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net

losses of the investee is recognized to the extent the carrying amount of the investment together with any long-

term interests that in substance form part of its net investment in the investee is reduced to zero except that the

Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term

equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includes

the corresponding adjustments in the owners’ equity of the Group.

(3) Determination of control and significant influence on investee

Control is the power over an investee. An investor must have exposure or rights to variable returns from its

involvement with the investee and the ability to use its power over the investee to affect the amount of the

investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions

of the investee but is not control or joint control with other parties over those policies

82深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(4)Disposal of long-term equity investment

1) Partial disposal of long term investment in which control is retained

When long term investment is been partially disposed but control is retained by the company the difference

between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit

or loss.

2) Partial disposal of long term investment in which control is lost

When long term investment is partially disposed and control is lost as a result the carrying value of the long term

invest on the stock right the difference between carrying amount of the part being disposed and disposal proceeds

should be recognized as profit or loss. The residual part should be treated as long term investment or other

financial assets according to their carrying amount. After partial disposal if the company is able to exert

significant influence or common control over the investee the investment should be measured according to cost

method or equity method in compliance with relevant accounting standards and regulations.

(5)Impairment test and provision for impairment

If there is objective evidence on the balance sheet date showing investment in subsidiaries associates and joint

ventures is impaired provision of impairment shall be made against the difference between the carrying amount

and the recoverable amount of the investment.

23. Investment real estate

Measurement mode

Measured by cost method

Depreciation or amortization method

(1) Investment property including land use right which has been rented out land use right which is held for

transfer upon appreciation and buildings which has been rented out.

(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern and

relevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixed

assets and intangible assets. As of the balance sheet date where there is any indication that an investment property

experiences impairment the relevant impairment provision shall be provided for based on the difference between

the carrying value and the recoverable amount.

24. Fix assets

(1) Recognition conditions

Fixed assets refer to the tangible assets for production of products provision of labor lease or operation and with

a service life in excess of one financial year. Fixed assets are recorded at the actual cost at the time of acquisition

and depreciation is calculated and withdrawn using the average life method from the month after they reach the

83深圳中华自行车（集团）股份有限公司2022年半年度报告全文

intended usable state

(2) Depreciation methods

Yearly depreciation

Category Method Years of depreciation Scrap value rate

rate

Straight-line

Housing buildings 20-year 10% 4.5%

depreciation

Straight-line

Machinery equipment 10-year 10% 9%

depreciation

Means of Straight-line

5-year 10% 18%

transportation depreciation

Electronic equipment Straight-line

5-year 10% 18%

and others depreciation

N/A

(3) Recognition basis valuation and depreciation method for financial lease assets

Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the

ownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase

the leasing asset at a price that is much lower than its fair value so it can be reasonably determined that the lessee

will take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life

(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the present

value of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% or

higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collects

at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets

are of such a specialized nature that only the lessee can use them without major modifications. Fixed assets

rented-in under finance lease are recorded at the lower of fair value and the present value of the minimum lease

payment at the inception of the lease and are depreciated following the depreciation policy for self-owned fixed

assets.

25. Construction in progress

(1)When the construction in progress has reached the intended condition for use it will be treated as fixed assets

as per the actual construction cost. If the construction in progress has reached the intended condition for use but

completion accounting is not carried out the construction in progress should be first treated as fixed assets as per

the estimated value. After completion accounting is carried out the original estimated value should be adjusted as

per the actual cost but the provision for depreciation withdrawn should not be adjusted.

(2)As of the balance sheet date where there is any indication that a construction in process experiences

impairment the relevant impairment provision shall be provided for based on the difference between the carrying

value and the recoverable amount.

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26. Borrowing expenses

N/A

27.Biological assets

N/A

28. Oil and gas asset

N/A

29. Right-of-use assets

On the commencement date of the lease term the Group recognizes right-of-use assets and lease liabilities for

leases except for short-term leases and leases of low-value assets that are simplified by the standard.The Group initially measures right-of-use assets at cost. This cost includes:

1. The initial measurement amount of the lease liability;

2. The lease payment amount paid on or before the commencement date of the lease term if there is a lease

incentive deduct the relevant amount of the lease incentive already enjoyed;

3. Initial direct costs incurred;

4. The expected cost of demolishing and removing the leased asset restoring the site where the leased asset is

located or restoring the leased asset to the condition as agreed in the lease terms. If the aforementioned cost is

incurred for the production of inventories and the Accounting Standards for Business Enterprises No. 1 -

Inventories shall apply.The Group recognizes and measures the cost mentioned in Item 4 above in accordance with Accounting Standards

for Business Enterprises No. 13 - Contingencies.Initial direct costs are the incremental cost incurred to achieve the lease. Incremental cost is the cost that would

not have incurred if the enterprise had not acquired the lease.With reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 -

Fixed Assets the Group accrues depreciation for right-of-use assets. Where it can be reasonably determined that

the ownership of the leased asset will be obtained at the expiration of the lease term depreciation shall be accrued

within the remaining service life of the leased asset. Where it cannot be reasonably determined that the ownership

of the leased asset can be obtained at the expiration of the lease term depreciation shall be accrued within the the

shorter of the lease term and the remaining service life of the leased asset.In accordance with the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets the Group

determines whether the right-of-use asset is impaired and performs accounting treatment on the identified

impairment losses.

85深圳中华自行车（集团）股份有限公司2022年半年度报告全文

30. Intangible assets

(1) Valuation method service life and impairment test

1.Intangible assets include land use right patent right and non-patent technology which should be initially

measured at cost.

2.Intangible assets with limited service life should be amortized systematically and reasonably in their service

lives as per the expected form of realization economic benefits relating to the said intangible assets. If the form of

realization cannot be reliably determined the intangible assets should be amortized on a straight-line basis.

3.At the balance sheet date when there is any indication that the intangible assets with finite useful lives may be

impaired a provision for impairment loss is recognized on the excess of the carrying amounts of the assets over

their recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying the

condition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.

(2) Internal accounting policies relating to research and development expenditures

Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of

occurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same

time: * it is technically feasible that the intangible asset can be used or sold upon completion; * there is intention

to complete the intangible asset for use or sale; * the intangible asset can produce economic benefits including

there is evidence that the products produced using the intangible asset has a market or the intangible asset itself

has a market; if the intangible asset is for internal use there is evidence that there exists usage for the intangible

asset; * there is sufficient support in terms of technology financial resources and other resources in order to

complete the development of the intangible asset and there is capability to use or sell the intangible asset; * the

expenses attributable to the development phase of the intangible asset can be measured reliably.

31. Impairment of long-term assets

N/A

32. Long-term expenses to be apportioned

Long-term expenses to be apportioned are booked by actual amount occurred and apportioned evenly during the

benefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit the

subsequent accounting periods the outstanding value of the item to be amortized shall be included in current

profit or loss in full.

86深圳中华自行车（集团）股份有限公司2022年半年度报告全文

33. Contract liability

The CBC lists contract assets or contract liabilities in the balance sheet based on the relationship between

performance obligations and customer payments. The CBC's obligations to transfer goods or provide services to

customers for which consideration has been received or receivable are listed as contract liabilities. Contract assets

and contract liabilities under the same contract are listed as a net amount.

34. Employee compensation

(1) Accounting treatment for short-term compensation

During the accounting period when staff providing service to the CBC the actual short-term compensation

occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The non-

monetary welfare is measured by fair value.

(2) Accounting treatment for post-employment benefit

The CBC terminates the labor relationship with an employee before the employee labor contract expires or

proposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the CBC

cannot uN/Aaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor confirm the

relevant costs of the restructuring involving the payment of termination benefits whichever is earlier the

liabilities arising from the compensation for the termination of the labor relationship with the employees are

recognized and included in the current profit and loss.

(3) Accounting for retirement benefits

When the CBC terminates the employment relationship with employees before the end of the employment

contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy the

Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and

included in profit or loss for the current period when the CBC cannot revoke uN/Aaterally compensation for

dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the CBC

recognize cost and expenses related to payment of compensation for dismissal and restructuring whichever is

earlier.

(4) Accounting for other long-term employee benefits

The employees of the CBC have participated in the basic social endowment insurance organized and implemented

by the local labor and social security department. The CBC pays the endowment insurance premium to the local

basic social endowment insurance agency on a monthly basis based on the base and ratio of the local basic social

87深圳中华自行车（集团）股份有限公司2022年半年度报告全文

endowment insurance payment. After the retirement of employees the local labor and social security department

has the responsibility to pay the social basic pension to the retired employees. During the accounting period in

which employees provide services the Company recognizes the amount payable calculated according to the above

social security insurance regulations as the liabilities and includes them in the current profit and loss or related

asset costs.

35. Leasing liability

N/A

36. Accrual liability

N/A

37. Share-based payment

(1)Types of share-based payment

Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.

(2)Determination of fair value of equity instruments

1)determined based on the price quoted in an active market if there exists active market for the instrument.

2)determined by adoption of valuation technology if there exists no active market including by reference to the

recent arm’s length market transactions between knowledgeable willing parties reference to the current fair value

of another instrument that is substantially the same discounted cash flow analysis and option pricing models.

(3)Basis for determination of the best estimate of exercisable equity instruments

To be determined based on the subsequent information relating to latest change of exercisable employees.

(4)Accounting relating to implementation amendment and termination of share-based payment schemes

1)Equity-settled share-based payment

For equity instruments that may be exercised immediately after the grant the fair value of such instrument shall

on the date of the grant be recognized in relevant costs or expenses with the increase in the capital reserve

accordingly. For equity-settled share-based payment made in return for the rendering of employee services that

cannot be exercised until the services are fully rendered during vesting period or specified performance targets are

met on each balance sheet date within the vesting period the services acquired in the current period shall based

on the best estimate of the number of exercisable instruments be recognized in relevant costs or expenses and the

capital reserves at the fair value of such instruments on the date of the grant.For equity-settled share-based payment made in exchange for service from other parties such payment shall be

measured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And if

the fair value of the service cannot be measured reliably while the fair value of the equity instrument can be

88深圳中华自行车（集团）股份有限公司2022年半年度报告全文

measured reliably it shall be measure at the fair value of the instrument as of the date on which the service is

acquired which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.

2)Cash-settled share-based payment

For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for render

of service by employees the fair value of the liability incurred by the Company shall on the date of the grant be

recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settled share-

based payment made in return for the rendering of employee services that cannot be exercised until the services

are fully provided during vesting period or specified performance targets are met on each balance sheet date

within the vesting period the services acquired in the current period shall based on the best estimate of the

number of exercisable instruments be recognized in relevant costs or expenses and the corresponding liabilities at

the fair value of the liability incurred by the CBC.

3)Revision and termination of share-based payment schemes

If the revision results in an increase in the fair value of the equity instruments granted the Company shall

recognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. If

the revision results in an increase in the number of equity instruments granted the Company will recognize the

increase in the services rendered accordingly at the fair value of the increased number of equity instruments. If the

Company revises the vesting conditions on terms favorable to the employees the CBC will take into consideration

of the revised vesting conditions when dealing with the vesting conditions.If the revision results in a decrease in the fair value of the equity instruments granted the Company shall continue

recognize the amount of services rendered accordingly at the fair value of the equity instruments on the date of

grant without considering the decrease in the fair value of the equity instruments. If the revision results in a

decrease in the number of equity instruments granted the Company will account for such decrease by reducing

part of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms not

favorable to the employees the Company will not take into consideration of the revised vesting conditions when

dealing with the vesting conditions.If the CBC cancels the equity instruments granted or settles the equity instruments granted during the vesting

period (other than cancellation as a result of failure to satisfy the vesting conditions) such cancellation or

settlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting period

will be recognized immediately.

38. Other financial instruments including senior shares and perpetual bonds

N/A

89深圳中华自行车（集团）股份有限公司2022年半年度报告全文

39. RevenueThe Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

(1) Recognition of revenue

On the starting date of the contract the company evaluates the contract identifies each individual performance

obligation contained in the contract and determines whether each individual performance obligation is performed

within a certain period of time or at a certain point in time.When meeting one of the following conditions it belongs to the performance obligation within a certain period of

time otherwise it belongs to the performance obligation at a certain point in time: 1) The customer obtains and

consumes the economic benefits brought by the company's performance at the same time as the company

performs the contract; 2) The customer can control the goods or services under construction during the company's

performance; 3) The goods or services produced during the company's performance have irreplaceable uses and

the company has the right to collect payments for the accumulated performance part of the contract during the

entire contract period .For performance obligations performed within a certain period of time the company recognizes revenue in

accordance with the performance progress during that period of time. When the performance progress cannot be

reasonably determined if the cost incurred is expected to be compensated the revenue shall be recognized

according to the amount of the cost incurred until the performance progress can be reasonably determined. For

performance obligations performed at a certain point in time revenue is recognized at the point when the

customer obtains control of the relevant goods or services. When judging whether the customer has obtained

control of the goods the company considers the following signs: 1) The company has the current right to receive

payment for the goods that is the customer has the current payment obligation for the goods; 2) The company has

transferred the legal ownership of the goods to the customer that is the customer has legal ownership of the

goods; 3) The company has transferred the product to the customer in kind that is the customer has physically

taken possession of the product; 4) The company has transferred the major risks and rewards of the ownership of

the goods to the customer that is the customer has obtained the main risks and rewards of the ownership of the

goods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control of

the goods.

(2) Principles of income measurement

1) The company measures income based on the transaction price allocated to each individual performance

obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive

due to the transfer of goods or services to the customer and does not include the amount collected on behalf of a

third party and the amount expected to be returned to the customer.

2) If there is variable consideration in the contract the company shall determine the best estimate of the variable

consideration based on the expected value or the amount most likely to incur but the transaction price including

the variable consideration shall not exceed the amount at which the accumulatively recognized income is most

90深圳中华自行车（集团）股份有限公司2022年半年度报告全文

likely not be subject to a significant reversal when the relevant uncertainty is eliminated.

3) If there is a major financing component in the contract the company shall determine the transaction price based

on the amount payable in cash when the customer assumes control of the goods or services. The difference

between the transaction price and the contract consideration shall be amortized by the effective interest method

during the contract period. On the starting date of the contract if the company expects that the interval between

the customer's acquisition of control of the goods or services and the customer's payment of the price will not

exceed one year we will not consider the significant financing components in the contract.

4) If the contract contains two or more performance obligations the company will allocate the transaction prices

to each individual performance obligation in accordance with the relative proportion of the stand-alone selling

price of the goods promised by each individual performance obligation on the commencement date of contract.

(3) Specific method of revenue recognition:

Time point for recognition of the revenue from product sales: the products sold by the company to customers are

recognized as revenue after the products are delivered to the customer and the customer carries out acceptance and

inspection.

40. Government subsidy

(1) government subsidy including those relating to assets and relating to income

(2)government grant if granted as monetary assets are measured at the amount received or receivable and

measured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably they

shall be measured at nominal value.

(3) Aggregate method for government subsidy:

1)government subsidy relating to assets are recognized as deferred income which shall be recorded in profit or

loss by installment reasonably and systematically within the useful life of the assets. If assets are sold transferred

discarded as useless or damaged prior to expiration of the useful life the remaining deferred income undistributed

shall be transferred to profit or loss for the period in which the assets are disposed.

2)If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequent

periods they shall be recognized as deferred income and recorded in profit or loss for the period in which the

relevant costs are recognized. If government subsidy relating to income are used to compensate for the relevant

costs or loss occurred they shall be recorded in profit or loss for the period directly.

(4)Net method for government subsidy

1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;

2) If government subsidy relating to income are used to compensate for relevant costs or loss for the subsequent

periods they shall be recognized as deferred income and recorded in profit or loss for the period in which offset

91深圳中华自行车（集团）股份有限公司2022年半年度报告全文

against the relevant costs. If government subsidy relating to income are used to compensate for the relevant costs

or loss occurred they shall be offset against the relevant costs for the period directly.

(5)The CBC adopts aggregated accounting method for the government subsidy received.

(6)As for the government subsidy comprising both portions relating to assets and income separate accounting

shall be made for different portion; in case it is hard to differentiate the portions the grants will be recorded as

related to income in general.

(7)The CBC realizes government subsidy relating to its normal activities as other income based on the substance

of economic business and if not related to its normal activities realized as non-operating income and expenditure.

(8)Subsidized loans from preferential policy obtained by the CBC are classified based on whether subsidy funds

are paid to the loaning bank or directly to the Company by the competent financial authorities and are treated

based on the following principles:

1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then

provides loans to the Company at a preferential policy rate accounting shall be made by the CBC as follows:

a. Recognizes the actual borrowing amount received as the carrying value of the loan and calculates the relevant

borrowing costs based on the principal and the preferential policy rate.b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effective

interest method and recognizes the difference between the actual amount received and the fair value of the loan as

deferred income. Deferred income is amortized over the term of the loan under effective interest method and

offset against the relevant borrowing costs.

2)Where subsidy funds are paid directly to the CBC the CBC will offset the corresponding subsidy against the

relevant borrowing expenses.

41. Deferred income tax assets/Deferred income tax liabilities

(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the

carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of

items not recognized as assets and liabilities but with their tax base being able to be determined according to tax

laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be

recovered or the liabilities are expected to be settled.

(2)A deferred tax asset is recognized to the extent of the amount of the taxable income which it is most likely to

obtain and which can be deducted from the deductible temporary difference. At the balance sheet date if there is

any exact evidence that it is probable that future taxable profits will be available against which deductible

temporary differences can be utilized the deferred tax assets unrecognized in prior periods are recognized.

(3)At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a

92深圳中华自行车（集团）股份有限公司2022年半年度报告全文

deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be

available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to

the extent that it becomes probable that sufficient taxable income will be available.

(4) The income tax and deferred tax for the period are treated as income tax expenses or income through profit or

loss excluding those arising from the following circumstances: * business combination; and * the transactions

or items directly recognized in equity.

42. Lease

(1) Accounting for operating lease

When the CBC is the lessee lease payments are recognized as cost or profit or loss with straight-line method over

the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as profit or

loss in the periods in which they are incurred.When the CBC is the lessor lease income is recognized as profit or loss with straight-line method over the lease

term. Initial expenses other than those with material amount and eligible for capitalization which are recognized

as profit or loss by installments are recognized directly as profit or loss. Contingent rents are charged into profit

or loss in the periods in which they are incurred.

(2)Accounting for financing lease

When the CBC acts as lessee at the inception of lease the lower of fair value of leased assets at the inception of

lease and the present value of minimum lease payment is recognized as the value of leased assets. The minimum

lease payment is recognized as the value of long-term payable. Their difference is recorded as unrecognized

finance costs with any initial direct expense incurred recorded in the value of leased assets. For each period of the

lease term current finance cost is calculated using effective interest method.When the CBC acts as lessor at the inception of lease the sum of minimum lease income at the inception of lease

and the initial direct expense is recognized as the value of finance lease payment receivable with unsecured

balance also recorded. The difference between the sum of minimum lease income initial direct expense and

unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period

of the lease term current finance income is calculated using effective interest method.

43. Other important accounting policy and estimation

Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and

presented separately under operation segments and financial statements which has fulfilled one of the following

criteria:

(1) it represents an independent key operation or key operating region;

93深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operating

region; or

(3) it only establishes for acquisition of subsidiary through disposal.

The CBC shall separately list profit and loss from continuing operations and profit and loss from discontinuing

operations in the profit statement. For non-current assets held for sale or disposal groups that do not meet the

definition of discontinuing operations the impairment losses and reversal amounts and disposal gains and losses

should be presented as profit or loss from continuing operations. Operational gains and losses and disposal profits

and losses such as impairment losses and reversal amounts of discontinuing operations should be reported as

profits or losses of discontinuing operations.

44. 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

45. Other

N/A

VI. Taxes

1. Main tax category and tax rate

Tax category Tax calculation evidence Tax rate

Sales of goods taxable labor service

revenue taxable income intangible

VAT 5% 6% 13%

assets income and income from property

leasing

City Maintenance & Construction Tax Turnover tax payable 7%

Enterprise income tax Taxable income 25% 20% 15%

Education fee surcharge Turnover tax payable 3%

Local education fee surcharge Turnover tax payable 2%

Disclose reasons for different taxpaying body

Taxpaying body Income tax rate

CBC 15.00%

Shenzhen Emmelle Industrial Co. Ltd. 25.00%

Shenzhen Xinsen Jewelry Gold Supply Chain Co. Ltd. 20.00%

Shenzhen Emmelle Cloud Technology Co. Ltd. 20.00%

94深圳中华自行车（集团）股份有限公司2022年半年度报告全文

2. Tax preference

Note 1: The CBC obtained the high-tech enterprise certificate "GR202044200651" jointly approved by the

Shenzhen Science and Technology Innovation Commission the Shenzhen Finance Bureau and the Shenzhen Tax

Service State Taxation Administration on December 11 2020 the validity period is from 2020 to 2022. Therefore

the CBC enjoys a preferential tax rate of 15% in 2022.Note 2: In accordance with the Enterprise Income Tax Law of the People's Republic of China and its enforcement

regulations the Announcement of the Ministry of Finance and the State Taxation Administration on the

Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and

Commercial Households" (No. 12 of 2021) and the Announcement of the Ministry of Finance and the State

Taxation Administration on Further Implementing Preferential Income Tax Policies for Small and Micro

Enterprises (No. 13 of 2022) from January 1 2021 to December 31 2022 the part of the annual taxable income

of small and low-profit enterprises not exceeding 1 million yuan shall be included in the taxable income at a

reduced tax rate of 12.5% and the enterprise income tax shall be levied at the tax rate of 20%; from January 1

2022 to December 31 2024 the part of the annual taxable income of small and low-profit enterprises exceeding 1

million yuan but not exceeding 3 million yuan shall be included in the taxable income at a reduced tax rate of 25%

and the enterprise income tax shall be levied at the tax rate of 20%. During the reporting period Shenzhen Xinsen

Jewelry Gold Supply Chain Co. Ltd. and Shenzhen Emmelle Cloud Technology Co. Ltd. which are subsidiaries

of CBC were small and low-profit enterprises and were subject to the preferential tax rate of 20%.

3. Other

N/A

VII. Notes to Items in Consolidated Financial Statements

1. Monetary fund

Unit: RMB/CNY

Item Ending balance Opening balance

Cash on hand 33659.25 27587.25

Cash in bank 25871474.01 33219370.67

Total 25905133.26 33246957.92

Other explanation

N/A

2. Trading financial assets

Unit: RMB/CNY

Item Ending balance Opening balance

Including:

Other explanation:

95深圳中华自行车（集团）股份有限公司2022年半年度报告全文

N/A

3. Derivative financial assets

Unit: RMB/CNY

Item Ending balance Opening balance

Other explanation:

N/A

4. Notes receivable

(1) Category

Unit: RMB/CNY

Item Ending balance Opening balance

Unit: RMB/CNY

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book Book

Accrual Accrual

Amount Ratio Amount value Amount Ratio Amount value

ratio ratio

Notes receivable with

bad debt provision

0.000.00%0.000.00%0.000.000.00%0.000.00%0.00

accrual by single

basis

Including:

Notes receivable with

bad debt provision 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00

accrual by portfolio

Including:

Total 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00

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:

□Applicable √Not applicable

(2) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

Unit: RMB/CNY

Current changes

Category Opening balance Collected or Ending balance

Accrual Charge-off Other

reversal

Total 0.00 0.00 0.00 0.00 0.00 0.00

Including important amount of bad debt provision collected or reversal in the period:

□Applicable √Not applicable

(3) Note receivable pledged at period-end

Unit: RMB/CNY

Item Amount pledged at period-end

Total 0.00

96深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(4) 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

Total 0.00 0.00

(5) Notes transfer to account receivable due for failure implementation by drawer at period-end

Unit: RMB/CNY

Item Amount transfer to account receivable at period-end

Total 0.00

Other explanation

N/A

(6) Note receivable actually charge-off in the period

Unit: RMB/CNY

Item Amount charge-off

Including important note receivable charge-off:

Unit: RMB/CNY

Amount cause by

Procedure for

Enterprise Nature Amount charge-off Causes of charge-off related transactions

charge-off

or not (Y/N)

Total -- 0.00 -- -- --

Explanation on note receivable change-off:

N/A

5. Account receivable

(1) Category

Unit: RMB/CNY

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book

Accrual Accrual Book value

Amount Ratio Amount value Amount Ratio Amount

ratio ratio

Account receivable

with bad debt 269611 682119 2013992 2407243 7229285 16843150.

54.12%25.30%44.44%30.03%

provision accrual by 15.53 4.85 0.68 6.14 .93 21

single basis

Including:

Accounts with single

significant amount

23068146136218454501892566378513315140533.

but with bad debts 46.30% 20.00% 34.94% 20.00%

32.476.505.976.88.3850

provision accrued

individually

Accounts with single

minor amount but

3892982207561685414514676934441521702616.7

with bad debts 7.82% 56.71% 9.50% 66.92%

3.068.35.71.26.551

provision accrued

individually

97深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Account receivable

with bad debt 228593 68577.9 2279072 3009722 30006933.

45.88%0.30%55.56%90291.680.30%

provision accrual by 00.56 1 2.65 5.06 38

portfolio

Including:

Account receivable

withdrawal bad debt

provision by group of

22859368577.92279072300972230006933.

credit risk 45.88% 0.30% 55.56% 90291.68 0.30%

characteristics 00.56 1 2.65 5.06 38

(Aging analysis

method)

49820468897742930645416966731957746850083.

Total 100.00% 13.83% 100.00% 13.51%

16.092.763.331.20.6159

Bad debt provision accrual on single basis: Accounts with single significant amount but with bad debts

provision accrued individually

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Accrual ratio Accrual causes

Guangshui Jiaxu The payment is

Energy Technology 23068132.47 4613626.50 20.00% overdue and there is an

Co. Ltd. impairment risk

Total 23068132.47 4613626.50

Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but

withdrawal bad debt provision on single basis

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Accrual ratio Accrual causes

Suzhou Daming Vehicle Expected to be difficult

970254.42485127.2150.00%

Industry Co. Ltd. to recover

Suzhou Jiaxin Economic Expected to be difficult

888757.00444378.5050.00%

Trade Co. Ltd. to recover

Dongguan Daxiang New Expected to be difficult

731734.00219520.2030.00%

Energy Co. Ltd. to recover

Shijiazhuang Dasong Expected to be difficult

557064.00557064.00100.00%

Tech. Co. Ltd to recover

Guangdong Xinlingjia Expected to be difficult

348136.00104440.8030.00%

New Energy Co. Ltd. to recover

Shanghai Swen Electric Expected to be difficult

280197.50280197.50100.00%

Vehicle Co. Ltd. to recover

Tianjin Huihui Electric Expected to be difficult

116840.14116840.14100.00%

Vehicle Co. Ltd. to recover

Total 3892983.06 2207568.35

Bad debt provision accrual on portfolio: Account receivable withdrawal bad debt provision by group of credit

risk characteristics (Aging analysis method)

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Accrual ratio

Within one year (one year

20776064.5162328.200.30%

included)

1-2 years (2 years included) 2073521.05 6220.56 0.30%

2-3 years (3 years included) 9715.00 29.15 0.30%

Total 22859300.56 68577.91

Explanation on portfolio basis:

N/A

98深圳中华自行车（集团）股份有限公司2022年半年度报告全文

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

By account age

Unit: RMB/CNY

Account age Ending balance

Within one year (one year included) 42707250.92

Within one year 42707250.92

1-2 years 3274208.05

2-3 years 1422393.00

Over 3 years 2416564.12

3-4 years 355920.42

4-5 years 1383579.70

Over 5 years 677064.00

Total 49820416.09

(2) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

Unit: RMB/CNY

Current changes

Category Opening balance Collected or Ending balance

Accrual Charge-off Other

reversal

Bad debt

provision for

7319577.61828493.12736225.77522072.206889772.76

accounts

receivable

Total 7319577.61 828493.12 736225.77 522072.20 6889772.76

Including important amount of bad debt provision collected or reversal in the period:

Unit: RMB/CNY

Enterprise Amount collected or reversal Collection way

Total 0.00

N/A

(3) Account receivables actually charge-off during the reporting period

Unit: RMB/CNY

Item Amount charge-off

Payment for goods 522072.20

Including major account receivables charge-off:

Unit: RMB/CNY

Amount cause by

Procedure for

Enterprise Nature Amount charge-off Causes of charge-off related transactions

charge-off

or not (Y/N)

Sichuan Wanling arbitration was Approval by

Electric Technology Payment for goods 522072.20 settled out of the Company’s N

Co. Ltd. court procedures

Total 522072.20

99深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Explanation on account receivable charge-off:

N/A

(4) Top five account receivables collected by arrears party at ending balance

Unit: RMB/CNY

Ending balance of accounts Proportion of total closing Ending balance of bad bet

Name

receivable balance of accounts receivable provision

Guangshui Jiaxu Energy

23068132.4746.30%4613626.50

Technology Co. Ltd.Shenzhen Yunshang

6043106.1412.13%18129.32

Jewelry Co. Ltd.Fuzhou Rongrun Jewelry

5194218.6810.43%15582.66

Co. Ltd.Fuzhou Cangshan Dingjue

4487989.669.01%13463.97

Jewelry Firm

Xi’an Zhongjinpu Trading

3150812.786.32%9452.44

Co. Ltd.Total 41944259.73 84.19%

(5) Account receivable derecognition due to transfer of financial assets

N/A

(6) Assets and liability resulted by account receivable transfer and continuous involvement

N/A

Other explanation:

6. Receivables financing

Unit: RMB/CNY

Item Ending balance Opening balance

Change of receivables financing and fair value in the period

□Applicable √Not applicable

If the provision for bad debts of receivable financing is made in accordance with the general model of expected

credit losses please refer to the disclosure of other account receivable to disclose related information about bad-

debt provisions:

□Applicable √Not applicable

Other explanation:

N/A

7. Account paid in advance

(1) By account age

Unit: RMB/CNY

100深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Ending balance Opening balance

Account age

Amount Ratio Amount Ratio

Within one year 510458.38 100.00% 1300408.57 100.00%

Total 510458.38 1300408.57

Explanation on un-settlement in time for advance payment with over one year account age and major amounts:

N/A

(2) Top 5 advance payment at ending balance by prepayment object

Enterprise Relationship with the Amount Account age Nature Ratio in

Company total

advance e

payment

(%)

Non-related party

Shanghai Baoxinlai Diamond 200000.00 Within 1 year Prepayment 39.18

Co. Ltd. (including 1 year)

Non-related party

Shenzhen Hualinglong 192880.59 Within 1 year Prepayment 37.79

Jewelry Culture Technology (including 1 year)

Co. Ltd.Non-related party

Shenzhen Huamao Gold Co. 38413.46 Within 1 year Prepayment 7.52

Ltd. (including 1 year)

Non-related party

Shenzhen Emerald Gold 28340.35 Within 1 year Prepayment 5.55

Industry Co. Ltd. (including 1 year)

Non-related party

Shenzhen Jinxuan New 22500.00 Within 1 year Prepayment 4.41

Energy Materials Co. Ltd. (including 1 year)

Total 482134.40 94.45

Other explanation:

At end of the period there was no advance payment from shareholder unit and other related parties that holds 5% (included) voting

rights of the Company among Advance Payment

8. Other account receivable

Unit: RMB/CNY

Item Ending balance Opening balance

Other account receivable 608727.67 494695.27

Total 608727.67 494695.27

(1) Interest receivable

1) Category

Unit: RMB/CNY

Item Ending balance Opening balance

101深圳中华自行车（集团）股份有限公司2022年半年度报告全文

2) Important overdue interest

Unit: RMB/CNY

Impairment (Y/N) and

Borrower Ending Balance Overdue time Overdue reason

judgment basis

Total 0.00

Other explanation:

N/A

3) Accrual of bad debt provision

□Applicable √Not applicable

(2) Dividend receivable

1) Category

Unit: RMB/CNY

Item (or invested company) Ending balance Opening balance

2) Important dividend receivable with over one year aged

Unit: RMB/CNY

Item (or invested Causes of failure for Impairment (Y/N) and

Ending balance Account age

company) collection judgment basis

Total 0.00 -- -- --

3) Accrual of bad debt provision

□Applicable √Not applicable

Other explanation:

N/A

(3) Other account receivable

1) By nature

Unit: RMB/CNY

Account nature Ending book balance Opening book balance

Deposit or margin 600378.84 576539.00

Payment for equipment 311400.00 311400.00

Personal loan of employees 60680.51 20144.82

Total 972459.35 908083.82

2) Accrual of bad debt provision

Unit: RMB/CNY

102深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Phase I Phase II Phase III

Expected credit Expected credit losses for Expected credit losses for

Bad debt provision Total

losses over next 12 the entire duration (without the entire duration (with

months credit impairment occurred) credit impairment occurred)

Balance on January 1

413388.55413388.55

2022

January 1 2022 balance

in the current period

Accrued in this period 343.13 343.13

Reversal in Current

50000.0050000.00

Period

Balance on June 30 2022 363731.68 363731.68

Change of book balance of loss provision with amount has major changes in the period

□Applicable √Not applicable

By account age

Unit: RMB/CNY

Account age Ending balance

Within one year (one year included) 200520.35

1-2 years 350039.00

2-3 years 60000.00

Over 3 years 361900.00

4-5 years 10200.00

Over 5 years 351700.00

Total 972459.35

3) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

Unit: RMB/CNY

Current changes

Category Opening balance Collected or Ending balance

Accrual Charge-off Other

reversal

Bad debt

provision for

413388.55343.1350000.00363731.68

other receivables-

The first stage

Total 413388.55 343.13 50000.00 363731.68

N/A

Important amount of bad debt provision switch-back or collection in the period:

Unit: RMB/CNY

Enterprise Amount switch-back or collection Collection way

Total 0.00 --

N/A

4) Other account receivables actually charge-off during the reporting period

Unit: RMB/CNY

Item Amount charge-off

Including major other account receivables charge-off:

Unit: RMB/CNY

103深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Amount cause by

Procedure for

Enterprise Nature Amount charge-off Causes of charge-off related transactions

charge-off

or not (Y/N)

Total -- 0.00 -- -- --

Other Explanation on account receivable charge-off

N/A

5) 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 debt provision

period-end

Shenzhen Luwei

Payment for

Mechatronic 300000.00 Over 5 years 30.85% 300000.00

equipment

Equipment Co. Ltd

Shenzhen

Gangdelong Margin or deposit 211840.00 1-2 years 21.78% 635.52

Industrial Co. Ltd.Shenye Pengji

Margin or deposit 147449.35 1-2 years 15.16% 442.35

(Group) Co. Ltd.Alipay (China)

Network Technology Margin or deposit 110000.00 Within 3 years 11.31% 330.00

Co. Ltd.Quick Money

Payment Clearing

Margin or deposit 30000.00 Within 5 years 3.08% 30000.00

Information Co.Ltd.Total -- 799289.35 -- 82.19% 331407.87

6) Account receivable with government grants involved

Unit: RMB/CNY

Time amount and basis

Enterprise Government grants Ending Balance Ending account age of amount collection

estimated

N/A

7) Other account receivable derecognition due to financial assets transfer

N/A

8) Assets and liability resulted by other account receivable transfer and continuous involvement

N/A

Other explanation:

9. Inventory

Whether companies need to comply with the disclosure requirements of the real estate industry

104深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(1) Category

Unit: RMB/CNY

Ending balance Opening balance

Provision for Provision for

inventory inventory

depreciation or depreciation or

Item

Book balance contract Book value Book balance contract Book value

performance cost performance cost

impairment impairment

provision provision

Raw materials 17973482.40 4227.80 17969254.60 5151013.66 4227.80 5146785.86

Inventory goods 2963963.14 371836.25 2592126.89 2917927.37 371836.25 2546091.12

Consigned

processing 3199662.29 3199662.29 555696.79 555696.79

materials

Total 24137107.83 376064.05 23761043.78 8624637.82 376064.05 8248573.77The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

(2) Provision for inventory depreciation or contract performance cost impairment provision

Unit: RMB/CNY

Current increased Current decreased

Item Opening balance Switch back or Ending balance

Accrual Other Other

charge-off

Raw materials 4227.80 4227.80

Inventory goods 371836.25 371836.25

Total 376064.05 0.00 0.00 0.00 0.00 376064.05

N/A

(3) Explanation on capitalization of borrowing costs at ending balance of inventory

N/A

(4) Description of the current amortization amount of contract performance costs

N/A

10. Contractual assets

Unit: RMB/CNY

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Total 0.00 0.00 0.00 0.00

Book value of contract assets has major changes and causes:

Unit: RMB/CNY

Item Amount changes Reason for change

Total 0.00 ——

If the provision for bad debts of contract asset is made in accordance with the general model of expected credit

105深圳中华自行车（集团）股份有限公司2022年半年度报告全文

losses please refer to the disclosure of other account receivable to disclose related information about bad-debt

provisions:

□Applicable √Not applicable

Accrual of impairment provision in the period

Unit: RMB/CNY

Reversal in Current Reversal/Charge-off in

Item Accrued in this period Causes

Period the period

Total 0.00 0.00 0.00 --

Other explanation:

N/A

11. Assets held for sale

Unit: RMB/CNY

Ending book Impairment Ending book Expected disposal Expected disposal

Item Fair value

balance provision value expenses time

Total 0.00 0.00 0.00 0.00 0.00 --

Other explanation:

N/A

12. Non-current asset due within one year

Unit: RMB/CNY

Item Ending balance Opening balance

Important creditors’ investment/Other creditors’ investment

Unit: RMB/CNY

Ending balance Opening balance

Creditor's rights

Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date

Total 0.00 —— —— —— 0.00 —— —— ——

Other explanation:

N/A

13. Other current assets

Unit: RMB/CNY

Item Ending balance Opening balance

Tax credit and input tax to be certified 1933181.85 1078351.48

Prepaid corporate income tax 87048.96

Non-public offering of stock issuance fees 735849.05 735849.05

Total 2756079.86 1814200.53

Other explanation:

N/A

14. Creditors’ investment

Unit: RMB/CNY

Item Ending balance Opening balance

106深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Total 0.00 0.00 0.00 0.00

Important creditors’ investment

Unit: RMB/CNY

Ending balance Opening balance

Creditor's rights

Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date

Total 0.00 —— —— —— 0.00 —— —— ——

Accrual of impairment provision

Unit: RMB/CNY

Phase I Phase II Phase III

Expected credit Expected credit losses for Expected credit losses for

Bad debt provision Total

losses over next 12 the entire duration (without the entire duration (with

months credit impairment occurred) credit impairment occurred)

January 1 2022 balance

————————

in the current period

Change of book balance of loss provision with amount has major changes in the period

□Applicable √Not applicable

Other explanation:

N/A

15. Other creditors’ investment

Unit: RMB/CNY

Cumulative

loss

Change of Cumulative impairment

Opening Accrued Ending

Item fair value in Cost changes of recognized in Note

balance interest Balance

the period fair value other

comprehensi

ve income

Total 0.00 0.00 0.00 0.00 0.00 ——

Important other creditors’ investment

Unit: RMB/CNY

Other creditors’ Ending balance Opening balance

investment Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date

Total 0.00 —— —— —— 0.00 —— —— ——

Accrual of impairment provision

Unit: RMB/CNY

Phase I Phase II Phase III

Expected credit Expected credit losses for Expected credit losses for

Bad debt provision Total

losses over next 12 the entire duration (without the entire duration (with

months credit impairment occurred) credit impairment occurred)

January 1 2022 balance

————————

in the current period

Change of book balance of loss provision with amount has major changes in the period

□Applicable √Not applicable

Other explanation:

107深圳中华自行车（集团）股份有限公司2022年半年度报告全文

N/A

16. 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

Total 0.00 0.00 0.00 0.00 --

Impairment of bad debt provision

Unit: RMB/CNY

Phase I Phase II Phase III

Expected credit Expected credit losses for Expected credit losses for

Bad debt provision Total

losses over next 12 the entire duration (without the entire duration (with

months credit impairment occurred) credit impairment occurred)

January 1 2022 balance

————————

in the current period

Change of book balance of loss provision with amount has major changes in the period

□Applicable √Not applicable

N/A

(2) Long-term account receivable derecognized due to financial assets transfer

N/A

(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement

N/A

Other explanation

17. Long-term equity investments

Unit: RMB/CNY

Changes in the period (+ -)

Ending

Other Cash

Opening Investme Accrual Ending balance

The Additiona comprehe dividend

balance nt gains Other of Balance of

invested l Capital nsive or profit

(Book recognize equity impairme Other (Book impairme

entity investmen reduction income announce

value) d under change nt value) nt

t adjustmen d to

equity provision provision

t issued

I. Joint venture

Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Associated enterprise

Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other explanation

N/A

108深圳中华自行车（集团）股份有限公司2022年半年度报告全文

18. Other equity instrument investment

Unit: RMB/CNY

Item Ending balance Opening balance

Itemized the non-tradable equity instrument investment in the period

Unit: RMB/CNY

Causes of those

that designated

Retained earnings measured by fair Cause of retained

transfer from value and with its earnings transfer

Dividend income Cumulative

Item Cumulative gains other variation from other

recognized losses

comprehensive reckoned into comprehensive

income other income

comprehensive

income

Other explanation:

N/A

19. Other non-current financial assets

Unit: RMB/CNY

Item Ending balance Opening balance

Other explanation:

N/A

20. Investment real estate

(1) Investment real estate measured at cost

□Applicable √Not applicable

(2) Investment real estate measured at fair value

□Applicable √Not applicable

(3) Investment real estate without property rights certificate

Unit: RMB/CNY

Reasons for failing to complete the

Item Book value

property rights certificate

Other explanation

N/A

21. Fixed assets

Unit: RMB/CNY

Item Ending balance Opening balance

Fixed assets 3277124.92 3439212.00

Total 3277124.92 3439212.00

109深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(1) Fixed assets

Unit: RMB/CNY

Housing and Machinery Means of Electronic

Item Total

buildings equipment transportation equipment and other

I. Original book

value:

1.Opening balance 2959824.00 1428098.77 958593.21 253527.49 5600043.47

2.Current

36959.6336959.63

increased

(1) Purchase 36959.63 36959.63

(2)

Construction in

process transfer-in

(3) The

increase in business

combination

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance 2959824.00 1428098.77 958593.21 290487.12 5637003.10

II. Accumulated

depreciation

1.Opening balance 732556.44 451592.16 784467.01 192215.86 2160831.47

2.Current

66596.0463651.7246751.5222047.43199046.71

increased

(1) Accrual 66596.04 63651.72 46751.52 22047.43 199046.71

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance 799152.48 515243.88 831218.53 214263.29 2359878.18

III. Impairment

provision

1.Opening balance

2.Current

increased

(1) Accrual

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance

IV. Book value

1.Ending book

2160671.52912854.89127374.6876223.833277124.92

value

2.Opening book

2227267.56976506.61174126.2061311.633439212.00

value

(2) Fixed assets temporary idle

Unit: RMB/CNY

110深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Accumulated Impairment

Item Original book value Book value Note

depreciation provision

(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 Luohu District.Six properties in Lianxin Garden 2160671.52

According to the agreement the enterprise

shall not carrying any kind of property

trading with any units or individuals except

the government and Shen Zhonghua has

no property certification on the above

mentioned properties.Other explanation

N/A

(5) Fixed assets disposal

Unit: RMB/CNY

Item Ending balance Opening balance

Other explanation

N/A

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

Total 0.00 0.00 0.00 0.00

111深圳中华自行车（集团）股份有限公司2022年半年度报告全文

(2) Changes in significant construction in progress

Unit: RMB/CNY

Accumul including

Proporti

Fixed ated : interest Interest

Other on of

increased assets amount capitaliz capitaliz

Opening decrease Ending project Source of

Item Budget in the transfer- Progress of ed ation rate

balance d in the balance investme funds

Period in in the interest amount of the

Period nt in

Period capitaliz of the year

budget

ation year

Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --

(3) Provision for impairment of construction in progress in the current period

Unit: RMB/CNY

Item Accrual in the period Reasons for accrual

Total 0.00 --

Other explanation

N/A

(4) Engineering materials

Unit: RMB/CNY

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Total 0.00 0.00 0.00 0.00

Other explanation:

N/A

23. Productive biological asset

(1) Productive biological assets measured by cost

□Applicable √Not applicable

(2) Productive biological assets measured by fair value

□Applicable √Not applicable

24. Oil and gas asset

□Applicable √Not applicable

25. Right-of-use asset

Unit: RMB/CNY

Item Houses and buildings Total

I. Original book value:

1.Opening balance 3051512.28 3051512.28

112深圳中华自行车（集团）股份有限公司2022年半年度报告全文

2.Current increased

3.Current decreased

4.Ending balance 3051512.28 3051512.28

II. Accumulated depreciation

1.Opening balance 1546253.38 1546253.38

2.Current increased 235664.04 235664.04

(1) Accrual 235664.04 235664.04

3.Current decreased

(1) Disposal

4.Ending balance 1781917.42 1781917.42

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 1269594.86 1269594.86

2.Opening book value 1505258.90 1505258.90

Other explanation:

N/A

26. Intangible assets

(1) Intangible assets

Unit: RMB/CNY

Non-patent

Item Land use right Patent Trademark 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. Cumulative

amortization

113深圳中华自行车（集团）股份有限公司2022年半年度报告全文

1.Opening

balance

2.Current

increased

(1) Accrual

3.Current

decreased

(1) Disposal

4.Ending

balance

III. Impairment

provision

1.Opening

balance

2.Current

increased

(1) Accrual

3.Current

decreased

(1) Disposal

4.Ending

balance

IV. Book value

1.Ending book

value

2.Opening book

value

Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end

(2) Land use right without certificate of title completed

Unit: RMB/CNY

Reasons for failing to complete the

Item Book value

property rights certificate

Other explanation:

N/A

27. Expense on Research and Development

Unit: RMB/CNY

Current increased Current decreased

Opening Internal Confirmed as Transfer to Ending

Item

balance development Other intangible current profit balance

expenditure assets and loss

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other explanation

N/A

114深圳中华自行车（集团）股份有限公司2022年半年度报告全文

28. Goodwill

(1) Original book value of goodwill

Unit: RMB/CNY

Current increased Current decreased

The invested Formed by

Opening balance Ending balance

entity or items business Dispose

combination

Total 0.00 0.00 0.00 0.00 0.00 0.00

(2) Impairment provision of goodwill

Unit: RMB/CNY

The invested Current increased Current decreased

Opening balance Ending balance

entity or items Accrual Dispose

Total 0.00 0.00 0.00 0.00 0.00 0.00

Information about the asset group or asset group combination in which the goodwill is located

N/A

Explain the method of confirming the goodwill impairment test process key parameters (such as the forecast

period growth rate stable period growth rate profit rate discount rate forecast period etc. when estimating the

present value of future cash flow) and the impairment loss of goodwill:

N/A

Impact of impairment test for goodwill

N/A

Other explanation

29. Long-term expenses to be apportioned

Unit: RMB/CNY

Amortized in the

Item Opening balance Current increased Other decrease Ending balance

Period

Total 0.00 0.00 0.00

Other explanation

N/A

30. Deferred income tax assets/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 assets difference assets

115深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Impairment provision of

64046.673041804.7464046.673041804.74

assets

Total 64046.67 3041804.74 64046.67 3041804.74

(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

Total 0.00 0.00 0.00 0.00

(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

Unit: RMB/CNY

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

64046.6764046.67

assets

(4) Details of unrecognized deferred income tax assets

Unit: RMB/CNY

Item Ending balance Opening balance

Total 0.00 0.00

(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

Unit: RMB/CNY

Year Ending amount Opening amount Note

Total 0.00 0.00 --

Other explanation:

N/A

31. 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 house 400000.00 400000.00 400000.00 400000.00

Total 400000.00 0.00 400000.00 400000.00 0.00 400000.00

Other explanation:

As of June 30 2022 the Housing and Construction Bureau of Luohu District Shenzhen City has not delivered houses for enterprise

talents in Luohu District.

116深圳中华自行车（集团）股份有限公司2022年半年度报告全文

32. Short-term loans

(1) Category

Unit: RMB/CNY

Item Ending balance Opening balance

Explanation on short-term loans category:

N/A

(2) Overdue outstanding short-term loans

Total 0.00 Yuan overdue outstanding short-term loans at period-end including the followed significant amount:

Unit: RMB/CNY

Borrower Ending Balance Lending rate Overdue time Overdue rate

Total 0.00 -- -- --

Other explanation:

N/A

33. Trading financial liability

Unit: RMB/CNY

Item Ending balance Opening balance

Including:

Other explanation:

N/A

34. Derivative financial liability

Unit: RMB/CNY

Item Ending balance Opening balance

Other explanation:

N/A

35. Notes payable

Unit: RMB/CNY

Type Ending balance Opening balance

Notes expired at period-end without paid was 0.00 Yuan.

36. Account payable

(1) Account payable

Unit: RMB/CNY

Item Ending balance Opening balance

Within one year (one year included) 13923384.90 7347161.83

117深圳中华自行车（集团）股份有限公司2022年半年度报告全文

1-2 years (2 years included) 48424.51 48424.51

2-3 years (3 years included) 410259.07 410259.07

3-4 years (4 years included) 487016.93 487016.93

4-5 years (5 years included) 1240.00 1240.00

Over 5 years 3204.00 3204.00

Total 14873529.41 8297306.34

(2) Important account payable with account age over one year

Unit: RMB/CNY

Item Ending balance Reasons of un-paid or carry-over

Total 0.00 --

Other explanation:

Among the account payable at end of the Period there were no amounts owed to shareholders units and other related parties that

holds 5% (inclusive) or more of the voting shares of CBC.

37. Account received in advance

(1) Account received in advance

Unit: RMB/CNY

Item Ending balance Opening balance

(2) Account received in advance with over one year book age

Unit: RMB/CNY

Item Ending balance Reasons of un-paid or carry-over

Total 0.00 --

Other explanation:

N/A

38. Contract liability

Unit: RMB/CNY

Item Ending balance Opening balance

Goods received in advance 749240.52 124328.07

Total 749240.52 124328.07

Book value has major changes in the period and causes

Unit: RMB/CNY

Item Amount changes Reason for change

Total 0.00 ——

39. Wage payable

(1) Wage payable

Unit: RMB/CNY

118深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Item Opening balance Current increased Current decreased Ending balance

I. Short-term

923477.103746977.503759201.48911253.12

compensation

II. Post-employment

benefit-Defined 205486.85 205486.85

contribution plan

Total 923477.10 3952464.35 3964688.33 911253.12

(2) Short-term compensation

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

1. Wages bonus

918177.003389636.153401861.34905951.81

allowances and subsidy

2. Employee benefits 16400.00 16400.00

3. Social insurance 148692.95 148692.95

Including: Medical

138985.20138985.20

insurance

Work injury insurance 610.35 610.35

Maternity insurance 9097.40 9097.40

4. Housing accumulation

160458.80160458.80

fund

5. Labor union

expenditure and

5300.1031789.6031788.395301.31

personnel education

expense

Total 923477.10 3746977.50 3759201.48 911253.12

(3) Defined contribution plan

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

1. Basic endowment

201488.35201488.35

insurance

2. Unemployment

3998.503998.50

insurance

Total 205486.85 205486.85

Other explanation:

At the end of the period there were no arrears in employee compensation.

40. Taxes payable

Unit: RMB/CNY

Item Ending balance Opening balance

Value added tax 909133.31 826399.46

Corporate income tax 27591.59

Individual income tax 23558.69 19002.77

Tax for maintaining and building cities 2689.79 15940.70

Stamp tax 5858.24 11223.31

Educational surtax 1883.80 11348.69

Total 943123.83 911506.52

Other explanation:

N/A

119深圳中华自行车（集团）股份有限公司2022年半年度报告全文

41. Other account payable

Unit: RMB/CNY

Item Ending balance Opening balance

Other account payable 59820372.70 61407301.04

Total 59820372.70 61407301.04

(1) Interest payable

Unit: RMB/CNY

Item Ending balance Opening balance

Important interest overdue without paid:

Unit: RMB/CNY

Borrower Amount overdue Overdue reason

Total 0.00 --

Other explanation:

N/A

(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:

N/A

(3) Other account payable

1) By nature

Unit: RMB/CNY

Item Ending balance Opening balance

Custodian and common benefit debts 29655312.16 25501476.16

Warranty and guarantee money 10756806.00 10756806.00

Intercourse funds 17613864.89 23328000.00

Other payable service charge (intermediary

624528.30624528.30

services included)

Collection and payment 635274.20 648626.35

Other 534587.15 547864.23

Total 59820372.70 61407301.04

2) Significant other payable with over one year age

Unit: RMB/CNY

Item Ending balance Reasons of un-paid or carry-over

Custodian and common benefit debts 29655312.16 -

Wansheng Industrial Holdings (Shenzhen)

9000000.00 Performance bond

Co. Ltd.Shenzhen Guosheng Energy Investment

6500000.00 Interest-free loans

Development Co. Ltd.

120深圳中华自行车（集团）股份有限公司2022年半年度报告全文

Total 45155312.16 --

Other explanation

Note 1: “Intercourse funds ” at period-begin and period-end includes 10000000.00 yuan which is the cooperation deposit

received in advance from Shenzhen Jianzhi Industrial Development Co. Ltd that may need to be returned in the future. Found

行情