深圳市深粮控股股份有限公司
SHENZHEN CEREALS HOLDINGS CO.LTD.ANNUAL REPORT 2024
【April 2025】Section I. Important Notice Contents and Interpretation
The Board of Directors the board of supervisors all directors supervisors and seniorexecutives of SHENZHEN CEREALS HOLDINGS CO. LTD. (hereinafter referred to as “theCompany”) 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.Principal of the Company Wang Zhikai Head of Accounting Lu Yuhe and Head of
Accounting Institution (Accounting Supervisor) Lu Chengjun hereby confirm that the
Financial Report of Annual Report 2024 is authentic accurate and complete.All Directors have attended the Board Meeting for deliberation of this Report.Concerning the forward-looking statements with future planning involved in the annual
report they do not constitute a substantial commitment for investors. Securities Times China
Securities Journal，Shanghai Securities Journal and Juchao Website (www.cninfo.com.cn)are the media appointed by the Company for information disclosure. All information of the
Company disclosed in the above mentioned media should prevail. Investors are advised to
exercise caution of investment risks.The Company has analyzed the risk factors that the Company may exist and itscountermeasures in the report. Investors are advised to read “Prospect for futuredevelopment of the Company” in the report of Section III Management Discussion and
Analysis. This report has been prepared in Chinese and English version respectively. In the
event of difference in interpretation between the two versions Chinese report shall prevail.The profit distribution plan that was deliberated and approved by the Board Meeting is:
based on total share capital of 1152535254 distributed cash bonus of 1.50 yuan (tax
inclusive) for every 10 shares 0 share bonus issued (tax inclusive) and no transfer of capital
reserve into share capital.Content
Section I. Important Notice Contents and Interpret... 2
Section II Company Profile and Main Financial Inde... 6
Section III Management Discussion and Analysis.......11
Section IV Corporate Governance......................30
Section V. Environmental and Social Responsibiliti.. 49
Section VI. Important Events........................ 51
Section VII. Changes in Shares and Particulars abo.. 77
Section VIII. Preferred Stocks.......................84
Section IX. Corporate Bonds..........................85
Section X. Financial Report.......................rence
1. Text of financial statement with signature and seals of legal person person in charge of accounting works and
person in charge of accounting institution;
2. Original audit report with seal of accounting firm and signature and seal of the CPA;
3. Original and official copies of all documents which have been disclosed on Securities Times China Securities
Shanghai Securities Journal and Juchao Website (www.cninfo.com.cn) in the reporting period;
4. Original copies of 2024 Annual Report with signature of the legal representative.Interpretation
Items Refers to Contents
SZCH/Listed Company /the Company/ Refers to Shenzhen Cereals Holdings Co. Ltd.Shenshenbao/Shenbao Company Refers to Shenzhen Shenbao Industrial Co. Ltd.SZCG Refers to Shenzhen Cereals Group Co. Ltd
Doximi Refers to Shenzhen Shenliang Doximi Business Co. Ltd.Shenzhen Flour Flthe company Refers to Shenzhen Flour Co. Ltd
Shenliang Quality Inspection Refers to Shenliang Quality Inspection Co. Ltd.Dongguan Logistics Refers to Dongguan Shenliang Logistics Co. Ltd.Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Technology Co. Ltd.Hualian Company Refers to Shenzhen Hualian Grain and Oil Trading Co. Ltd.Shenliang Cold Chain Refers to Shenzhen Shenliang Cold Chain Logistics Co. Ltd.Shenliang Property Refers to Shenzhen Shenliang Property Development Co. Ltd.SZCH Big Big Kitchen Refers to Shenzhen Shenliang Big Kitchen Food Supply Chain Co.Ltd
Grain and Oil Purchase and Sales Branch Refers to Grain and Oil Purchase and Sales Branch of ShenzhenCereals Group Co. Ltd
Dongguan Oil & Food Refers to Dongguan Shenliang Oil & Food Trade Co. Ltd.Shenliang Cold Transport Refers to Shenzhen Shenliang Cold Transport Co. Ltd.Shenshenbao Investment Refers to Shenzhen Shenshenbao Investment Co. Ltd
Shenzhen Shenliang Food Refers to Shenzhen Shenliang Food Co. Ltd.Zhenpin Refers to Zhenpin Market Operation Technology Co. Ltd.Wuhan Jiacheng Refers to Wuhan Jiacheng Biotechnology Co. Ltd
Shenzhen Agricultural Power Group Co. Ltd. originally
Shenzhen Agricultural Power named Shenzhen Food Materials Group Co. Ltd
Group/Food Material Group/Food Refers to Shenzhen Food Group Co. Ltd and Shenzhen Fude State
Group/Fude Capital Capital Operation Co. Ltd. is the controlling shareholder
of the company
Agricultural Products Refers to Shenzhen Agricultural Products Group Co. Ltd
SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen SASAC Refers to Shenzhen Municipal People’s Government State-ownedAssets Supervision & Administration Commission
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Grant Thornton CPAs Refers to Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership)
Article of Association Refers to Article of Association of Shenzhen Cereals Holdings Co.Ltd.RMB/10 thousand Yuan Refers to CNY/ten thousand YuanSection II Company Profile and Main Financial Indexes
I. Company information
Short form for share SZCH Shenliang B Stock code 000019 200019
Short form of share before
Shenshenbao Shenbao B
change (if applicable)
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the
Company 深圳市深粮控股股份有限公司
Abbr. of Chinese name of the
Company 深粮控股
English name of the Company
(if applicable) SHENZHEN CEREALS HOLDINGS CO. LTD
Abbr. of English name of the
Company N/A
Legal Representative Wang Zhikai
Registrations address 8/F Tower B No.4 Building Software Industry Base South District Science & TechnologyPark Xuefu Rd. Yuehai Street Nanshan District Shenzhen
Code for registrations add 518057
The registered address of the Company when listed in 1992 was No.10 Tianbei East Wenjin
North Road Luohu District Shenzhen; in 1999 the registered address changed to No.1058
Wenjin North Road Luohu District Shenzhen; in 2002 the registered address changed to 28/F
Historical changes of Tower B and C of Bao’an Square No.1002 Sungang Road Luohu District Shenzhen; in 2010
registered address the registered address changed to South half of the 20th floor Tower of Zhuzilin Education and
Technology Building Futian District Shenzhen; in 2015 registered address changed to 8/F
Tower B No.4 Building Software Industry Base South District Science & Technology Park
Xuefu Rd. Yuehai Street Nanshan District Shenzhen
Office address 13/F Tower A World Trade Plaza No.9 Fuhong Rd. Futian District Shenzhen
Codes for office add. 518033
Company’s website www.slkg1949.com
E-mail szch@slkg1949.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Chen Xiaohua Chen Kaiyue Liu Muya
13/F Tower A World Trade Plaza No.9 13/F Tower A World Trade Plaza No.9
Contact address
Fuhong Rd. Futian District Shenzhen Fuhong Rd. Futian District Shenzhen
Tel. 0755-83778690 0755-83778690
Fax. 0755-83778311 0755-83778311
chenky@slkg1949.com
E-mail 000019@slkg1949.com
liumy@slkg1949.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report of the Securities Times China Securities Journal Shanghai Securities
Company is disclosed Journal
Media and website where the annual report of the Company is
Juchao Website: www.cninfo.com.cn
disclosed
Preparation place for annual report Office of the Board of DirectorsIV. Registration changes of the Company
Organization code 91440300192180754J
On February 18 2019 the company completed the registration procedures of
changes in industry and commerce for business scope and other matters. The
Changes of main business since listing (if main business has newly increased the modern food supply chain services
applicable) such as grain & oil trading processing storage and logistics on the basis of
production research and development and sales of food raw materials
(ingredients) mainly focused on tea and natural plant deep processing.On September 10 1999 Shenzhen Investment Management Co. Ltd. entered
into the Equity Transfer Agreement of Shenzhen Shenbao Industrial Co. Ltd.with Shenzhen Agricultural Products Group Co. Ltd for 58347695 shares of
the Company (35% in total shares of the Company) transfer to Shenzhen
Agricultural Products Group Co. Ltd with price of RMB 1.95 per share.Shenzhen Agricultural Products Group Co. Ltd became the first majority
shareholder of the Company after transfer and procedures for the above equity
transfer has completed in June 2003.On April 3 2018 Shenzhen Investment Holdings Co. Ltd. completed the
transfer of all of its 79484302 A shares of the company to Fude Capital.After the completion of the equity transfer Fude Capital directly holds
Previous changes for controlling shareholders (if 79484302 A shares of the company (16% of the company’s original total
applicable) share capital) and controls 19.09% shares of the company through Shenzhen
Agricultural Products Group Co. Ltd. indirectly becoming the controlling
shareholder of the company.In 2018 the company implemented a major asset restructuring by issuing
655752951 A-shares to purchase 100% equity of Shenzhen Grain Group Co.
Ltd. held by the controlling shareholder Fude Capital. On November 12 2018
the above-mentioned issued shares were registered and listed and thecontrolling shareholder Fude Capital (now renamed into “ShenzhenAgricultural Power Group Co. Ltd.”) directly held 735237253 A-shares of
the company (63.79% of the total share capital of the company) and indirectly
held 8.23% of the company's shares through Shenzhen Agricultural Products
Group Co. Ltd.V. Other relevant information
CPA engaged by the Company
Name of CPA Grant Thornton Certified Public Accountant LLP (Special General
Partnership)
th
Offices add. of CPA 5 Floor Saite Plaza No. 22 Jianguomenwai Street Chaoyang District
Beijing China
Signing accountants Gao Hong Shu Zhicheng
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable□ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable□ Not applicable
VI. Main accounting data and financial indexes
Whether the company has retroactive adjustment or re-statement on previous accounting data or not
?Yes □No
Reasons for retrospective adjustments or restatementsBusiness combinations under the same control
In RMB
Changes
in the
current
2023 year over 2022
2024 theprevious
year (+/-)
Before
adjustment After adjustment
After Before
adjustment adjustment After adjustment
Operating
revenue (RMB) 5375089846.91 6190005356.82 6190005356.82 -13.17% 8312723058.19 8312952171.77
Net profit
attributable to
shareholders of
the listed 325309578.52 347824733.68 347739109.06 -6.45% 420764671.03 420465392.11
Company
(RMB)
Net profit
attributable to
shareholders of
the listed
Company after 307799147.68 328171024.17 328085399.55 -6.18% 402593545.20 402294266.28
deducting non-
recurring
gains/losses
(RMB)
Net cash flow
arising from
operating -15317619.38 585816656.19 585734715.61 -102.62% 531888766.64 532413776.97
activities (RMB)
Basic earnings
per share 0.2823 0.3018 0.3017 -6.43% 0.3649 0.3648
(RMB/Share)
Diluted earnings
per share 0.2823 0.3018 0.3017 -6.43% 0.3649 0.3648
(RMB/Share)
Weighted
average ROE 6.67% 7.26% 7.25% -0.58% 8.96% 8.94%
Changes
in the
current
Year-end of Year-end of 2023 year over Year-end of 2022
2024 theprevious
year (+/-)
Before
adjustment After adjustment
After Before
adjustment adjustment After adjustment
Total assets
(RMB) 7714550508.01 7398528190.94 7402926251.19 4.21% 7441489372.63 7450683615.20
Net assets
attributable to
shareholder of 4919674142.82 4824452103.84 4828491503.39 1.89% 4763122059.40 4767188755.69
listed company
(RMB)
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative and the
audit report of last year shows that the ability to continue operating is uncertain.□Yes □No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative.□Yes □NoVII. 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
In RMB
Net profit Net asset
Current amount Last amount Ending balance Beginning balance
Under Chinese GAPP 325309578.52 347739109.06 4919674142.82 4828491503.39
Items and amount adjusted under IAS
1067000.001067000.00
Under IAS 325309578.52 347739109.06 4920741142.82 4829558503.39
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 has no above-mentioned condition occurred in the period
3. Explanation on the reasons for the differences in accounting data under domestic and overseas
accounting standards
□ Applicable□ Not applicable
VIII. Main financial index disclosed by quarter
In RMB
Q 1 Q 2 Q 3 Q 4
Operating revenue 1072962661.16 2416452919.61 1385664850.01 500009416.13
Net profit attributable
to shareholders of the 63895624.77 129030850.78 115531458.13 16851644.84
listed company
Net profit attributable
to shareholders of the
listed company after 52190357.81 116892371.77 109897377.98 28819040.12
deducting non-
recurring gains/losses
Net cash flow arising
from operating 253168024.67 -158531444.41 427972407.50 -537926607.14
activities
Are there significant differences between the above-mentioned financial index or its total number and the relevant financial index
disclosed in the Company’s quarterly report and semi-annual report
□Yes □ No
IX. Items and amounts of non-recurring gains/losses
□Applicable □Not applicable
In RMBItem 2024 2023 2022 Note
Gains/losses from the disposal of non-current asset (including the
written-off of accrued impairment provision of assets) 5160259.92 2394378.42 -3470850.06
Governmental subsidies reckoned into current gains/losses (except for
those with normal operation business concerned and conform to the
national policies & regulations and are enjoyed according to certain 10243944.62 14544417.04 8775672.58
standard and having a continuous impact on the company’s gains/losses)
Gains/losses arising from changes in fair value of financial assets and
financial liabilities held by non-financial enterprises as well as
gains/losses from the disposal of financial assets and financial liabilities 182701.67 18546.91
except for effective hedging business related to the normal operation of
the company.Gains/losses of assets delegation on others’ investment or management 4518517.76 6622492.60 8455442.20
Reversal of impairment provision of accounts receivable which are
treated with separate depreciation test 679204.22 881986.09
Net current gains/losses from the business combination under the same
control in the period from the beginning of the period to the date of 92048.86
combination
Other non-operating income and expenditure except for the
aforementioned items 147191.48 644754.74 7042268.06
Other gains/losses that meet the definition of non-recurring gains/losses 2890749.95 1064111.79
Less: impact on income tax 5545407.55 5027939.98 4583525.90
Impact on minority shareholders’ equity (after-tax) -3125.80 386299.20 12525.84
Total 17510430.84 19653709.51 18171125.83 --
Other gains/losses that conform to the definition of non-recurring gains/losses:
□ Applicable□ Not applicable
The Company does not have other gains/losses that conform to the definition of non-recurring gains/losses.Information on the definition of non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses
□Applicable □Not applicable
The Company does not have any non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses.Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
1. Basic information of the industry development stage cyclical characteristics and the company’s position in the industry
In the international market multiple factors - including ample supply weak downstream demand shifts in cost-performance
ratios among different grain types and sluggish market sentiment - contributed to a downturn in global grain prices. The market
prices of major cereals declined to varying degrees. According to data from the Chicago Board of Trade (CBOT) in 2014 wheat
prices experienced a downward fluctuation falling from 629 cents per bushel to 551 cents per bushel over the year marking a year-
on-year decrease of 12.4%; corn prices declined from 686 cents per bushel in January 2023 to 396 cents per bushel in August 2024 -
a drop of 42% - before rebounding slightly to 458 cents per bushel by year-end down 2.6% year-on-year; soybean prices fell steadily
throughout the year reaching their lowest level in nearly four years dropping from 1297 cents per bushel to 1010 cents per bushel
representing a 22.2% year-on-year decline. International rice prices also retreated steadily from the peak at the beginning of the year
with India’s relaxation of its rice export policy further accelerating the decline. By the end of the year export prices for white rice
from Thailand Vietnam and Pakistan had dropped from the initial range of USD 595–659 per tonne to USD 429-523 per tonne
representing year-on-year decreases of 20.6% 22.1% and 23.4% respectively.On the domestic front China’s grain output reached a new record high in 2024 surpassing 700 million tonnes for the first time.Despite the bumper harvest prices of major grain varieties continued to decline. With ample domestic grain supply and sluggish
consumption growth combined with the downward pressure from international grain prices purchase prices for wheat corn and rice
remained relatively stable in the first half of the year but dropped significantly after the autumn harvest entered the market. To
stabilize the market the government implemented a series of regulatory measures. The minimum purchase price policy for rice was
activated in four major producing provinces - Henan Jiangsu Heilongjiang and Anhui. China Grain Reserves Group (Sinograin)
expanded its procurement for wheat and corn reserves while wheat and corn imports were curtailed to boost market confidence.Nevertheless overall grain prices remained at relatively low levels. For rice early and late indica rice purchase prices remained
stable in the first half of the year. However in the second half early indica rice prices saw a slight decline while late indica rice
prices began to fall in August. For wheat domestic prices continued their downward trend due to spillover effects from the
international market. By the end of December wheat purchase prices had dropped below RMB 2400 per tonne to RMB 2370 per
tonne returning to 2020 levels - a year-on-year decline of 16.7%. For corn domestic prices mirrored international trends and began
falling steadily from the second half of 2023. By the end of December prices had fallen to RMB 1931 per tonne down 16.8% year-
on-year reaching levels last seen in the first half of 2020. For soybeans domestic prices followed a similar trajectory to U.S. soybean
prices. By the end of December the average domestic price was RMB 4031 per tonne a year-on-year decrease of 20.5%. For edible
vegetable oils market performance was mixed. Rapeseed oil prices edged upward throughout the year reaching an ex-factory price
of RMB 9411 per tonne by the end of December a year-on-year increase of 10.4%. In contrast soybean oil prices hovered at low
levels with an ex-factory price of RMB 8141 per tonne showing little change year-on-year. Peanut oil prices experienced a
downward trend with the ex-factory price falling to RMB 14500 per tonne by the end of December a year-on-year decrease of 9.4%.(The above content is from the “2024 Grain and Oil Market Review and Future Outlook” released by the Grain and Material
Reserve Bureau of Guangdong Province.)
2. The significant impact of newly released laws administrative regulations departmental rules and industry policies on the
industryIn February 2024 the Central Committee of the Communist Party of China and the State Council issued the Opinions on
Drawing Lessons from the “Thousand Villages Demonstration and Ten Thousand Villages Renovation” Project to Effectively
Advance Comprehensive Rural Revitalization (hereinafter referred to as the Opinions). This marks the 12th No. 1 Central Document
since the 18th National Congress of the Communist Party of China reaffirming the nation’s top-level commitment to addressing
issues related to “agriculture rural areas and farmers”. The Opinions place ensuring national food security at the forefront of policy
priorities alongside the bottom-line goal of preventing large-scale reoccurrence of poverty. The document calls for the solid
advancement of a new round of initiatives to increase grain production capacity by 50 billion kilograms with a dual emphasis on
stabilizing the sown area and increasing per-unit yield. It sets a clear target of maintaining annual grain output above 650 million
tonnes (1.3 trillion jin). Additionally the document advocates continued support for the development of high-yield high-oil soybean
varieties the stabilization of minimum purchase prices for key staples such as wheat and rice and the promotion of a broad
perspective on agriculture and food security. To achieve these goals the Opinions outline a series of concrete measures including:
Ensuring the production of grain and other key agricultural products; strictly enforcing farmland protection policies; enhancing
agricultural infrastructure; strengthening the support of agricultural science and technology and establishing a modern agricultural
management system.In summary the 2024 policy document reflects the nation’s unwavering emphasis on food security and agricultural
development. It underscores the importance of maintaining and strengthening the Party’s comprehensive leadership over rural affairsaiming to build a strong agricultural sector. Drawing on the successful experience of the “Thousand Villages Demonstration and TenThousand Villages Renovation” initiative the strategy provides a clear roadmap for stabilizing and boosting food production thereby
safeguarding China’s national food security.II. Main businesses of the Company during the reporting period
Main business of the Company includes the wholesale and retail business food processing and manufacturing business leasing
and commerce service business.The wholesale and retail business are mainly rice wheat rice in the husk corn sorghum cooking oil and other varieties of
grain and oil as well as the sales of fine tea beverage and condiment. During the reporting period the company overcame many
adverse factors such as decline in market demand and fluctuation of grain price took multiple measures to ensure supply and stable
supply and continued to optimize the products strengthen the brand and expand the market. Mainly supplied wheat rice corn
barley sorghum and other raw grain to customers such as the industry’s large traders feed processing and flour processing
enterprises; mainly sold rice flour cooking oil high-quality tea beverages and other products to demand units and community
residents.Food processing and manufacturing business are mainly the processing and the technology research in aspect of flour rice
cooking oil tea and natural plant extracts beverage and condiments etc. The company’s flour brands and products include
“Jinchangman” “Yingshanhong” and “Hongli” series bread flour; “Clivia” and “Canna” series tailored flour for cakes and steamed
bun; “Sunflower” wheat flour for noodles and cookie flour; “Tianlvxiang” wheat flour for bread refined flour and dumpling flour
etc.; Rice products include “Shenliang Doximi” “Guzhixiang” “Gufengxianman” “Runxiangliangpin” “Hexiang” and “TaitaiFukou”. Cooking oil products include brands such as “Shenliang Fuxi” “Shenliang Jinxi” and “Youtian”. Tea brands mainly include
“Ju Fang Yong” tea; “Yichong” fresh extract “Jindiao” instant tea powder and other tea deep-processed products as well as
“Shenbao” chrysanthemum tea lemon tea and “Cha Mi Xiang Qi” and other series of tea drinks. Condiments are mainly “Sanjing”
oyster sauce and sauces. Several brands have formed product series including “SZCH Yushuiqing” rice noodles oil and coarse
cereals series “Jiaxi” rice & noodles series “Jinchangman” noodles & oil series “Black-faced Spoonbil”l tea rice oil drinking
water non-staple food and condiment series etc. and the launch of Jinqiu tea wine continues to enrich the product structure.The leasing and business service refers to providing the professional import & export trade warehousing & storage logistic &
distribution quality inspection & information technology services property leasing and management business operation
management services for all kinds of clients in the upstream and downstream of the industrial chain by using the advantage of brand
reputation operation service capacity and facility technology that accumulated in field of grain and oil market. Dongguan Shenliang
gain logistics complex is a comprehensive grain distribution service body integrating five major functions: grain & oil terminal
transit reserve testing & distribution processing & production and market trading; The subsidiary Shenliang Quality Inspection was
awarded as “Guangdong Shenzhen National Grain Quality Monitoring Station”. The subsidiary Shenliang Cold Chain provides cold
chain of food storage and distribution services to the customers and Shenliang Property is a professional assets management
platform enterprise.II. Core Competitiveness Analysis
The company enhances the endogenous power by deepening reform strengthens the “extensive” development by innovation
cooperation and continuously upgrades and transforms the governance pattern development quality and guarantee ability and has
embarked on a path of sustainable and high-quality development through self-innovation and become a highly competitive
innovative and influential backbone grain enterprise in the domestic grain industry.
1. Operation mechanism
The core management team of the company has rich experience and has a strong strategic vision and pragmatic spirit.Combined with the actual development of the Company formulated a set of effective mechanisms to promote the quality and
efficiency of business development. The company vigorously promotes the innovation and transformation of business models and
actively promotes the transition from “trade-oriented enterprises” to “service-oriented enterprises” and from “operationalmanagement and control” to “strategic management and control”. In business control through the own information management
system realizes a seamless link between the “operation” and “planning capital quality inspection inventory risk control anddiscipline” to effectively reduce the operational risks while fully participating in the market competition and achieving a deep
integration of “ensuring grain security” and “promoting development”. Through deeply promotes the strategy of “talent strengtheningthe enterprises” continuously innovative talent training mechanism to creates a high-quality talent supply chain the company has
established an open talent team to meet the long-term development of enterprises and reserve intelligence for the enterprise
upgrading and development. The company has innovated and implemented the performance appraisal mechanism and established a
result-oriented incentive and restraint assessment mechanism which effectively built the performance culture and stimulated theviability within the enterprise. The company insists on cultivating and advocating the corporate culture with “people-orientedperformance first excellent quality and harmony” as the core values combines the personal development goals of employees with
the corporate vision and enhances the cohesiveness and centripetal force of the enterprise.
2. Business model
The company deeply engages in segmenting the target market provides diversified product supply services for customers in
different areas of the industry chain establishes a multi-level product supply network covering online and offline and realizes the
transformation of product supply to “remoteness intelligentization and self-service”. In terms of grain and oil trading services the
bulk commodity trading platform www.zglsjy.com.cn created by its subsidiary Hualian Company efficiently integrates business flow
logistics and information flow improves circulation efficiency and provides spot listings one-way bidding basis price financing
logistics quality inspection information and other services for internal business units suppliers and customers. In terms of e-
commerce SZCH Doximi actively promotes the development of new grain retail formats such as “Internet + Grain” and has opened
channels on e-commerce platforms such as Tmall and Jingdong Mall so as to promote the deep integration of online and offline e-
commerce platforms. In terms of group meal supply its subsidiary SZCH Big Kitchen has established a one-stop distribution serviceplatform serving large end customers providing high-quality and safe oil and grain services for group users such as enterprises
schools and government institutions.
3. Information technology
The company attaches great importance to the transformation and upgrading of traditional industries with modern technological
means and actively introduces new-generation information technologies such as the Internet of Things cloud computing big data
and mobile Internet into grain management forming an information system that can cover the entire industrial chain of the grain
industry and promoting the “Internet + Grain” industry development. The company’s informatization construction capability is at theleading level in the grain reserves industry taking the lead in building the warehouse management of “standardizationmechanization informatization and harmlessness” in the industry the self-developed “Grain Logistics Information System (SZCGGLS)” has built a framework for the construction of grain informatization work innovated the grain management model led the
development direction of the grain industry and became a benchmark for the national grain industry. The project was awarded the
“National IoT Major Application Demonstration Project” by the National Development and Reform Commission and the Ministry of
Finance. The company has undertaken a number of national-level research projects the results of a number of informatization
projects have won national provincial and municipal awards and dozens of information systems have been developed and are
operating normally.
4. R&D capabilities
The company has strong R&D capabilities in the field of food and beverage and gathers leading technological advantages and
equipment systems. The subsidiary Shenbao Huacheng owns the Jiangxi provincial enterprise technology center Shenzhen municipal
research and development center (technology center) and Shenzhen plant deep processing technology engineering laboratory and
have obtained national high-tech enterprise certification. And also owns a number of patented technologies for tea powder tea
concentrated juice and plant extraction independently researched and developed and published dozens of scientific papers. and won
a number of awards such as Science and Technology Progress Award of the Ministry of Agriculture Shennong Chinese Agricultural
Science & Technology Award of the Chines Society of Agriculture Science & Technology Achievement Award of Chinese
Academy of Agricultural Sciences Science and Technology Award of China National Light Industry Council Zhejiang Science and
Technology Award Jiangxi Science and Technology Progress Award and Shenzhen Science & Technology Progress Award etc.presided over or participated in the preparation of several national standards and industry standards.
5. Quality control
The company implements grain and oil quality standards that are higher than national standards. The subordinate Shenliang
Quality Inspection has the leading grain and oil quality inspection technology and equipment in the domestic grain industry and isincluded in the national grain quality supervision and inspection system. It was awarded the “Guangdong Shenzhen National GrainQuality Monitoring Station” by the State Administration of Grain and obtained the assessment certificate of agricultural product
quality and safety inspection agency (CATL) and the qualification certificate of inspection agency (CMA) etc and passed the
certification of a number of testing capability items. Shenliang Quality Inspection lists pesticide residues heavy metal pollutants
fungal toxins and other hygiene indicators as well as food taste indicators in the daily inspection indicators. It has the ability to detect
four types of indicators of generic quality storage quality food security & quality and other four types of indicators of testing
capacity. The detection capability can meet the relevant quality detection requirements of grain and oil products and can accurately
analyze the nutritional composition and hygienic indicators of the grain and determine its storage and edible quality. It has created
the “digital laboratory” in the grain industry real-time monitoring of the entire process of cuttings testing distribution etc. relying
on collaborative platforms to save retrieve integrate analyze and share grain and oil testing data to achieve 100% coverage of grain
& oil product inspection. Has the internationally recognized quality control system. Its subsidiary Shenbao Huacheng has established
a quality control system recognized by large international food and beverage companies and has successfully passed the quality
certification of global suppliers of Coca-Cola Lipton Kraft Suntory and Nestlé.6. Brand effect
The company was awarded the “Top 500 Service Enterprises in China” “China’s Most Influential Grain & Oil Group”
“China Top Ten Grain and Oil Groups” “China Top 100 Grain and Oil Enterprises” “National Leading Enterprise Supporting Grainand Oil Industrialization” “National Quality Benchmark” and “Top 10 Food Digital Technology Applications”. It has been selected
as one of the “First Batch of National Emergency Food Security Enterprises” “Top 100 Agricultural Industrialized Head Enterprisesin China” “Top 10 Head Enterprise in the Grain Industry” and “The National Demonstration Enterprise of Assured Gain & OilDemonstration Project” etc. It is the “Rice Bag” trusted by the public. Strengthen brand leadership actively explore and cultivate
excellent public brands rely on quality to win recognition reputation and market share and form a series of high-quality grain and
oil products centered on China Good Grain and Oil Shenzhen Well-known Brands and Shenzhen Products. The company owns
well-known brands and platforms such as “Shenzhen Flour” “SZCH Duoxi” “SZCH Yushuiqing” “Big Kitchen” “ShenbaoTeabank” “Ju Fang Yong” “Cha Mi Xiang Qi” “Sanjing” “www.zglsjy.com.com” and “doximi.com”.IV. Main business analysis
1. Overview
In 2024 amid the downward trend in the grain and oil market sluggish consumer demand and shifts in policy environment the
company faced challenges head-on with resilience and determination. Through proactive efforts to expand revenue and reduce costs
the company continued to strengthen its core businesses made meaningful progress in developing new business areas and
accelerated the resolution of legacy issues - achieving hard-won progress throughout the year. As of December 2024 the company’s
total assets reached 7.715 billion yuan with net assets attributable to shareholders of the listed company standing at 4.92 billion yuan.Its asset-liability ratio stood at a healthy 36.21% positioning it among the top performers in the industry; the company recorded
operating revenue of 5.375 billion yuan and total profits of 419 yuan million with key financial indicators ranking favorably among
listed grain enterprises. In 2024 the company received numerous accolades including being named one of China’s Top 10 Grain and
Oil Groups winning the First Prize of the Science and Technology Award from the Chinese Cereals and Oils Association and being
listed among the Top 500 Enterprises in Guangdong Province. It was also recognized as a Key Leading Agricultural Enterprise in
Guangdong and an Outstanding “Double Hundred Enterprise”. Moreover the company successfully passed the national on-site
verification for emergency grain supply enterprises and was approved to participate in the development of the Greater Bay Area
Grain Emergency Supply Center.
(1) Main business developmentIn response to persistently weak demand in the grain and oil market in 2024 the company focused on identifying new “profitdrivers”. First it fulfilled its political responsibility of ensuring regional food security achieving record-high reserve levels. Despite
challenges such as significant price volatility and heavy storage tasks the company optimized its warehouse layout and storage
structure completing its largest-ever rice reserve initiative with high quality and efficiency thus reinforcing its reserve foundation.Second the company accelerated the construction of its grain and oil supply chain achieving notable progress in expanding trade
operations. By rigorously implementing the “Ten Prohibitions” in trade activities the company established a dedicated task force to
comprehensively reform its trading system building a “1+2+2” institutional framework. Senior executives led efforts to expand the
customer base while operating units actively engaged the market and deepened cooperation with leading industry players and
partners across the value chain.
(2) Progress of key projects
Key projects are progressing at a faster pace continuously enhancing the capacity of the grain oil and food supply chain. First
efforts are being made to ensure the high-quality construction and operation of the Shenshan storage facility. Dedicated personnelhave been dispatched to closely collaborate with the Municipal Development and Reform Commission to drive project development
and operational research. A technical team has also been assigned to participate in the installation of electromechanical equipment
and conduct studies on the facility’s operational model. Second the construction of the grain supply base in Northeast China is being
actively promoted. A 49% minority stake in the Shuangyashan has been acquired and the autumn grain procurement is being
expedited. The new grain season has already seen the successful storage of harvested rice. Third the Dongguan logistics hub is
undergoing a functional upgrade. Expansion and reconstruction work on Berth No. 4 the belt corridor and the CDE warehouse
cleaning and screening project are being pushed forward. These efforts have helped generate over 100 million yuan in transshipment
revenue. Fourth the construction of the Wuyuan Smart Factory is progressing steadily. A new mixing machine has been installed
storage capacity for raw materials has been expanded and infrastructure in the tea roasting area has been upgraded. These
enhancements are expected to further optimize and improve overall production capacity.
(3) Other key works
First efforts to accelerate technological innovation and foster new drivers of high-quality development have been intensified.Shenbao Huacheng has participated in the formulation of two industry standards including those related to tea concentrate and
jointly completed the project Key Technological Innovations and High-Value Applications of Biocatalysis in Tea Resources which
was awarded First Prize at the Provincial Science and Technology Progress Awards. Through technological empowerment the
company procures nearly 10000 tons of tea leaves annually from tea-producing regions contributing to increased income and
prosperity for local tea farmers. A quality inspection company has been recognized as the only institution in Guangdong Province
among the first batch of national grain and oil standards verification and testing workstations. It has successfully passed the
reassessment by the agricultural product quality and safety testing authorities with 311 indicators certified under CATL and 682
under CMA. In addition the release of the Technical Specifications for Emergency Rice Reserve Preservation in Shenzhen has filled
a gap in the city’s local standards.Second efforts have been intensified to strengthen and standardize corporate governance with multiple measures implemented
to advance high-quality development. Revisions were made to systems such as the Independent Director Policy of SZCH promoting
the implementation of independent director system reforms. The company optimized its organizational structure and assessment
models enhanced the compensation and performance evaluation system adjusted the ratio of fixed to variable pay to improve market
competitiveness and enforced a mandatory performance rating distribution system. Financial management efficiency continued to be
demonstrated with centralized fund management effectively reducing costs and enhancing efficiency to the greatest extent possible.Contract management was further standardized and improved through the comprehensive revision of the Contract Management
Policy which clarified approval authorities and procedures for various business matters and contract types. A standardized contract
repository was systematically enhanced and risk control was strengthened across multiple dimensions significantly improving
contract review efficiency. Project management was strengthened with the launch of an engineering project management information
system. Cost control measures were reinforced by reviewing project costs and setting reasonable bid ceiling prices thereby reducingconstruction expenses. Safety production management was also enhanced through the implementation of the “Three Managementsand Three Musts” principle reinforcing the primary responsibility for workplace safety and intensifying supervision and inspection
efforts. The company formulated and launched the 2024 Fire Safety Comprehensive Rectification Action Plan of SZCH conducting
thorough inspections and rectifications of general hazards. Internal lean management was promoted by advancing special initiatives
to defuse risks and maintain social stability. Overall the situation in petition-related work remained stable.
2. Operating revenue and cost
(1) Component of operating revenueIn RMB
20242023
Ratio in Ratio in YoY Increase/decrease
Amount operating Amount operating (+/-)
revenue revenue
Total operating revenue 5375089846.91 100% 6190005356.82 100% -13.17%
By industries
Wholesale and retail 3547023210.68 65.99% 4466378701.20 72.15% -20.58%
Leasing and business
services 1029137510.95 19.15% 967047827.95 15.62% 6.42%
Manufacturing 798929125.28 14.86% 756578827.67 12.22% 5.60%
By products
Grain & oil trading and
processing 3999373911.19 74.41% 4954330328.57 80.04% -19.28%
Grain & oil storage
logistics and services 856190020.28 15.93% 847768124.02 13.70% 0.99%
Food beverage and tea
processing 346578424.77 6.45% 268627200.30 4.34% 29.02%
Leasing and others 172947490.67 3.22% 119279703.93 1.93% 44.99%
By region
Domestic market 5342106430.30 99.39% 6150511661.23 99.36% -12.70%
Overseas market 32983416.61 0.61% 39493695.59 0.64% -86.07%
By sale model
Direct sale 5375089846.91 100.00% 6190005356.82 100.00% -13.17%
(2) Industries products regions and sales model that account for more than 10% of the operating revenue or operating profit
of the Company
□Applicable □Not applicable
In RMB
Gross YoY YoY
Operating revenue Operating cost profit increase/decrease
YoY
increase/decrease increase/decrease
ratio of operating of operating cost of gross profitrevenue ratio
By industry
Wholesale and
retail 3547023210.68 3439103716.33 3.04% -20.58% -18.86% -2.06%
By products
Grain & oil
trading and 3999373911.19 3888317295.08 2.78% -19.28% -17.75% -1.79%
processing
By region
Domestic
market 5342106430.30 4456647718.46 16.58% -13.14% -14.28% 1.11%
By sale model
Direct sale 5375089846.91 4479001434.83 16.67% -13.17% -14.34% 2.96%
In the event that the statistical caliber of the company’s main business data is adjusted during the reporting period the main business
data of the company has been adjusted according to the caliber at the end of the reporting period in the past year.□Applicable□Not applicable
(3) Revenue from physical sales larger than revenue from labors
□Yes □ No
YoY
Industries Item Unit 2024 2023 increase/decrease
(+/-)
Wholesale and Sales volume Ton 1397429.10 1577925.32 -11.44%
retail Output TonStorage Ton 1346900.95 1073790.95 25.43%
Reasons for y-o-y relevant data with over 30% changes
□Applicable□Not applicable
(4) Performance of significant sales contracts and major procurement contract entered into by the company up to the current
reporting period
□Applicable□Not applicable
(5) Component of operation cost
Classification of industries
In RMB
2024 2023 YoY
Industries Item Amount Ratio in Amount Ratio in increase/decrease
operation cost operation cost (+/-)
Wholesale and Raw
retail industry materials 3439103716.33 76.78% 4238501198.60 81.06% -18.86%
Explanation
The main business income of the company is from grain and oil trade and the corresponding cost expenditure is mainly the
procurement cost of grain and oil trade.
(6) Whether there are changes in the scope of consolidation in reporting period or not
□Yes □No
(7) Material changes or adjustment for products or services of the Company in reporting period
□Applicable□ Not applicable
(8) Major clients and main suppliers
Major clients of the Company
Total sales volume of top five clients (RMB) 1434463754.31
Proportion in total annual sales volume for top five clients 26.69%
Proportion in total annual sales volume for related sales among
top five clients 0.00%
Top five clients of the Company
SN Name Sales volume (RMB) Proportion in total annual salesvolume
1 Client I 784936300.63 14.60%
2 Client II 188289697.83 3.50%
3 Client III 166970723.08 3.11%
4 Client IV 155093808.85 2.89%
5 Client V 139173223.92 2.59%
Total -- 1434463754.31 26.69%Other explanation on main clients
□Applicable□Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 1568093186.67
Proportion in total annual purchase amount for top five suppliers 34.34%
Proportion in total annual purchase amount from related
0.00%
purchase among top five suppliers
Top five suppliers of the Company
SN Name Sum of purchase amount Proportion in annual sum of
(RMB) purchase amount
1 Supplier I 802886503.70 17.25%
2 Supplier II 197620468.07 4.25%
3 Supplier III 213657805.21 4.59%
4 Supplier IV 207467699.60 4.46%
5 Supplier V 176993461.04 3.80%
Total -- 1568093186.67 34.34%
Other explanation on main suppliers
□Applicable□Not applicable
3.Expenses
In RMB
2024 2023 YoY increase/decrease(+/-) Note of major changes
Mainly due to the
decline in the revenue
from the grain and oil
Sales expenses 149810329.96 176429835.98 -15.09% trading business and
the year-on-year
decrease of related sales
expenses.Administration Mainly due to the
expenses 168245200.59 213065091.64 -21.04% decrease in salaryexpenses
Mainly due to the
decrease in the average
annual borrowing
balance. At the same
Financial expenses 32678246.41 40062827.89 -18.43% time the market Loan
Prime Rate (LPR) has
been lowered several
times the decrease in
interest expenses
Mainly due to the
R&D expenses 25208644.43 20045364.68 25.76% increase in thecompany’s R&D
investment
4.R&D investment
□Applicable□Not applicable
Expected impact on the
Projects Purpose Progress Goals to be achieved future development of the
CompanyA system-wide platform for
Phase II of the To enhance the digital data and information sharing The initiative has
Reserve Grain and supervision of reserve grain has been established enabling significantly improved the
Oil Management and oil and to effectively one-click report generation company’s digital capabilities
Platform (Idle coordinate and utilize idle Completed real-time display of idle in reserve management
Period periods while managing periods and visualization of enhanced data quality and
Management inventory levels on a daily warehouse information. This governance and strengthened
System) basis. serves as a key internal tool for oversight of grain and oil
managing reserves. reserves.Focused on building a The data middle platform
To strengthen the company’s foundational structure for now provides a unified data
data governance and business data collection source for business
Data Middle regulatory capabilities by storage governance and operations decision-making
Platform Project addressing pain points Completed classification. Efforts have been and customer analysisstemming from a lack of made to enhance data thereby supporting future
unified standards and regulation and governance business development
centralized management. laying the groundwork for regulatory compliance and
standardized data management. improved customer service.By leveraging information The system has improved both
technology the company has the efficiency and accuracy of The initiative enhances the
developed an efficient performance evaluations level of performance
Performance scientific and user-friendly offering valuable data analysis evaluation boosts internal
Evaluation and system for assessing Completed to support management’s operational efficiency and
Scoring System performance across all strategic decision-making. This supports high-quality
headquarters departments in a in turn contributes to development through digital
comprehensive objective sustainable development by and intelligent human
and fair manner. strengthening human resource resources management.management.Smart equipment and software
To meet regulatory have been deployed at depots
Smart Grain requirements for reserve such as Pingshan and
Depot supervision and achieve Shuguang enabling automated
The project has improved theConstruction seamless access to “video Completed collection of grain conditionscompany’s compliance andProject surveillance” “grain video footage and data. Thisstandardization in reservecondition monitoring” and allows for transparent and management.“data integration.” thorough supervision of grain
and oil reserves.R&D personnel
2024 2023 Increase (+)/Decrease (-)
Number of R&D personnel 117 144 -18.75%
Ratio of number of R&D personnel 10.00% 11.86% -1.86%
Education background
Undergraduate 55 60 -8.33%
Master 34 33 3.03%
Age composition
Under 30 41 34 20.59%
30~40 42 65 -35.38%R&D investment
2024 2023 Increase (+)/Decrease (-)
R&D investment (RMB) 52099502.14 54614733.25 -4.61%
Ratio of R&D investment in
operating revenue 0.97% 0.88% 0.09%
Capitalization of R&D
investment (RMB) 0.00 0.00 0.00%
Ratio of capitalization of R&D
investment in R&D investment 0.00% 0.00% 0.00%
Describe rreasons for significant changes in component of the R&D personnel and related impact
□Applicable □Not applicable
Describe reasons for significant changes in ratio of R&D investment in operation revenue compared with that of last year
□ Applicable □ Not applicable
Describe reason for the great change in the ratio of capitalization of R&D investment in R&D investment.□ Applicable □ Not applicable
5. Cash flow
In RMB
Item 2024 2023 YoY Increase (+)/Decrease (-)
Subtotal of cash inflow from operation activity 6009744381.86 6705117606.34 -10.37%
Subtotal of cash outflow from operation activity 6025062001.24 6119382890.73 -1.54%
Net cash flow arising from operating activities -15317619.38 585734715.61 -102.62%
Subtotal of cash inflow from investment activity 442392843.77 1575902755.32 -71.93%
Subtotal of cash outflow from investment activity 451195262.84 1690621094.50 -73.31%
Net cash flow from investment activity -8802419.07 -114718339.18 92.33%
Subtotal of cash inflow from financing activity 3395816991.96 1931277809.13 75.83%
Subtotal of cash outflow from financing activity 3449612888.56 2231395012.46 54.59%
Net cash flow arising from financing activity -53795896.60 -300117203.33 82.08%
Net increased amount of cash and cash equivalent -77810324.25 174491378.52 -144.59%
Describe reasons for major YoY changes of relevant data
□ Applicable □ Not applicable
(1) The cash inflow from operating activities in current period decreased by 10.37% YOY mainly because the revenue from grain
and oil trade of the company decreased resulting in a decrease in cash inflow as the market demand for oil and grain went down;
(2) The net cash flow from operating activities in current period was negative compared with that positive in same period last year
mainly caused by the weakening demand in the grain and oil market which has led to a decline in the company's grain and oil trading
revenue. Besides it was due to the increase in the company's grain and oil inventory at the end of the period.
(3) The cash inflow from investment activities in current period reduced by 71.93% YOY mainly due to the year-on-year decrease in
the company's use of idle funds to purchase financial products/certificates of deposit this year. As a result the redemption of matured
financial products/ certificates of deposit reduced YOY leading to a reduction in cash inflows.
(4) The cash outflow from investing activities in current period decreased by 73.31% YOY mainly because the idle funds used by
the company to purchase financial products/certificates of deposit this year reduced YOY resulting in a reduction in cash outflows.
(5) The cash inflow from financing activities in the current period increased by 75.83%YOY mainly because the company used
more funds to procedure grain and oil and the working capital loans went up.(6) The cash outflow from financing activities in the current period increased by 54.59% YOY mainly because the company
increased its temporary working capital loans resulting in an increase in the corresponding loan repayment expenditures. The
increase ratio was consistent with the cash inflow from financing activities.
(7) The net increase in cash and cash equivalents has turned from positive to negative compared with that in the same period last year
mainly due to the increase in the company's payments for grain and oil procurement.Describe reasons for major difference between the cash flow arising from operation activity in reporting period and net profit of the
Company
□ Applicable□ Not applicable
V. Analysis of non-main business
□ Applicable □ Not applicable
In RMB
Amount Ratio in total profit Description of Sustainable orformation not(Y/N)
Investment income 3416742.97 0.81% Mainly financialmanagement income
Asset impairment -102359076.35 -24.41% Mainly due to inventoryfall provision
Non-operating income 608747.13 0.15%
Non-operating expense 603979.68 0.14%
VI. Analysis of assets and liabilities
1. Major changes of assets component
In RMB
Year-end of 2024 Year-begin of 2024
Ratio in Ratio in Ratio
Amount total Amount total changes
Notes of major changes
assets assets
Mainly payment by the
Monetary fund 168199291.23 2.18% 240740787.28 3.25% -1.07% company to purchase
grain and oil
Account
receivable 235789565.91 3.06% 179828493.98 2.43% 0.63%
Mainly due to the
Inventory 4044998642.52 52.43% 3458443989.04 46.72% 5.71% increase in inventory of
grain and oil.Investment real
estate 302075246.75 3.92% 263597031.89 3.56% 0.36%
Long-term
equity 45356888.44 0.59% 74008926.48 1.00% -0.41%
investment
Mainly due to the
Fixed assets 2009520283.95 26.05% 2171997328.52 29.34% -3.29% transfer of some fixedassets leased to
investment properties.Construction in
progress 39312847.70 0.51% 51288301.16 0.69% -0.18%
Right-of-use
assets 115258040.17 1.49% 56933148.16 0.77% 0.72%
Mainly due to increase
Short-term loans 1484605101.05 19.24% 1223462519.16 16.53% 2.71% in short-term bankborrowings the satisfy
the needs of thecompany for operating
capital
Contract liability 126590458.95 1.64% 86566253.73 1.17% 0.47%
Lease liability 78084500.76 1.01% 37744951.74 0.51% 0.50%
Foreign assets account for a relatively high proportion
□ Applicable□ Not applicable
2. Assets and liabilities measured at fair value
□ Applicable□ Not applicable
3. Restricted asset rights as of the end of the reporting period
The details of monetary funds which are restricted in use due to mortgage pledge or freezing which are restricted in withdrawal due
to centralized management of funds as well as which are deposited overseas and restricted in remittance back are as follows:
Item Ending balance in current period Ending balance in last period
Guarantee deposit 1800000.00
Letter of credit deposit 3245714.29 691708.31
Litigation related freezing 6018240.07 2973129.00
Total 9263954.36 5464837.31
VII. Investment analysis
1. Overall situation
□ Applicable □ Not applicable
Investment in reporting period (RMB) Investment in the same period of lastperiod (RMB) Changes (+/-)
98127483.2580361097.0022.11%
2.The major equity investment obtained in the reporting period
□ Applicable□ Not applicable
3.The major non-equity investment performed in the reporting period
□ Applicable□ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable □ Not applicableIn RMB
Chan
ges Bo
in okBook fair CumulShort Curr
Profit val
Varie Code form Initial
Account value at valu ative ent and ue
ty of of of invest
ing the fair Current loss in at Accou
measure beginni e of value purc sales the the nting Capitalsecur secur ment the hase Source
ities ities securit cost ment ng of curre change amo amount Reporti end subjecties model the nt s in unt ng ofperiod profi equity Period the
t and peri
loss od
Dom
estic Fair Tradab Debt
and 0000 Zhong 0.00 value 11223 32461 21238 0.0
le resche
overs 17 hua-A measure 47.85 97.15 49.30 0 financi
eas ments al
duled
shares
stock assets
Total 0.00 -- 11223 0.00 0.00 0.00 32461 21238 0.047.85 97.15 49.30 0 -- --
(2) Derivative investment
□ Applicable□Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable□Not applicable
There was no use of raised funds during the reporting period of the company.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable □Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable□ Not applicable
IX. Analysis of main holding company/ stock-jointly companies
□Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Compan Type Main Register Total assets Net assets Operating Operatingy name business capital revenue profit Net profit
Shenzhe Grain &
n Subsidia oil 1530000000 7034025779 2999570153 4857830822 290237727 194195618
Cereals ry trading .00 .20 .98 .61 .36 .46
Group processiCo. Ltd ng grain
and oil
reserve
service
Shenzhe
n
Hualian
Grain Subsidia Grain &oil 300000000. 1241378439 174502485.8 1316282505
--
and Oil ry trading 00 .25 9 .75
41636223.45261401.
Trading 07 04
Co.Ltd.Donggu Grain &
an oil
Shenlia trading
ng Subsidia processi 298000000. 2949449691 420479909.7 1112176887 55831332. 49327307.Logistic ry ng 00 .97 1 .36 34 77
s Co. warehou
Ltd. se andlogistics
Particular about subsidiaries obtained or disposed in reporting period
Applicable ? Not applicable
Explanation on main holding/stock-jointly companies:
Shenzhen Cereals Group Co. Ltd: Business scope: general business items: grain and oil purchase and sales grain and oil storage;
grain and oil and products management and processing (operated by branches); operation and processing of feed (operated by
outsourcing); investment in grain and oil feed logistics projects; establishing grain and oil and feed trading market (including e-
commerce market) (market license is also available); storage (operated by branches); development operation and management of
free property; providing management services for hotels; investing and setting up industries (specific projects are separately declared);
domestic trade; engaging in import and export business; E-commerce and information construction; and grain circulation service.Licensed business items: the following projects shall be operated only with the relevant examination and approval documents if they
are involved in obtaining approval: information services (internet information service only); general freight professional transport
(refrigerated preservation). Register capital is 1530000000.00 yuan. As of the end of current period total assets reached
7034025779.20 yuan and net assets amounted to 2999570153.98 yuan and shareholders’ equity attributable to parent company
was 2791831945.11 yuan; in the reporting period the operation revenue net profit and net profit attributable to shareholder of
parent company were 4857830822.61 yuan 194195618.46 yuan and 171228129.98 yuan respectively.Shenzhen Hualian Grain and Oil Trading Co. Ltd.: Business scope: general business items: domestic trade (except for projects that
laws administrative regulations and decisions of the State Council require approval before registration); engaging in import and
export business (except for projects prohibited by laws administrative regulations and decision of the State Council restricted
projects can be operated only after obtaining permission); online feed sales; information consultation self-owned housing leasing
(excluding talent agency services and other restricted items); international freight forwarding domestic freight forwarding (can only
be operated after being approved by the transport department if laws administrative regulations State Council decision require the
approval of transport department); Licensed business items: following items shall be operated only with the relevant examination and
approval documents if they are involved in obtaining approval: purchase and sale of grain and oil online sales of grain and oil;
information service business (internet information service business only). Register capital is 100000000.00 yuan. As of the end of
current period total assets reached 1241378439.25 yuan and net assets amounted to 174502485.89 yuan and shareholders’ equity
attributable to parent company was 174502485.89 yuan; in the reporting period the operation revenue net profit and net profit
attributable to shareholder of parent company were 1316282505.75 yuan negative 45261401.04 yuan and negative 44920120.22
yuan respectively.Dongguan Shenliang Logistics Co. Ltd. Business scope: General business items: Container and bulk cargo storage and other
supporting services; Container and bulk cargo transportation; Production: food (grain and oil) feed and feed additives; Grain
procurement; Wholesale and retail: prepackaged food (grain and oil) bulk food (grain and oil) feed and feed additives; Port
operations loading and unloading of steel and general cargo at ports; Road freight transportation; Water transportation water
transportation services; Grain and oil storage; Internet Information Services; Technical services for grain oil and feed quality
inspection; hotel management; Industrial investment; Market operation management; Supply chain management services;
International freight forwarding domestic freight forwarding; Customs declaration agency and inspection agency; Property
management and leasing; Import and export of goods and technology. Projects that require approval according to law can only be
operated with the approval of relevant departments. Its registered capital is 2980000.00 yuan. As of the end of current period total
assets reached 2949449691.97 yuan and net assets amounted to 420479909.71 yuan and shareholders’ equity attributable to
parent company was 420479909.71 yuan; in the reporting period the operation revenue net profit and net profit attributable to
shareholder of parent company were 1112176887.36 yuan 49327307.77 yuan and 49327307.77 yuan respectively.X. Structured vehicle controlled by the Company
□ Applicable□ Not applicable
XI. Prospects on future development
1. Development trend and competition layout of the industry
At present the domestic grain and oil trade processing and logistics industries are full-circulation sectors with high degree of
marketization numerous participating companies and fierce competition. Central enterprises and large local grain enterprises have
relatively complete warehousing and logistics facilities and enjoy a number of national policies; in recent years a large number of
outstanding national and regional private grain enterprises have come to the fore; with the development of China’s grain
marketization foreign grain enterprises have emerged in our country’s grain market and further intensified the competition in the
grain and oil industry by relying on abundant resources strong financial strength and mature management experience. The grain
industry in Shenzhen is developing vigorously there are many grain and oil processing enterprises with a certain scale and many
small and medium-sized enterprises in the area with the advancement of the “dual-zone construction” the population of cities in the
Pearl River Delta has increased and people’s living standards have improved the competition in the food market is orderly and
unprecedentedly fierce.
2. The company’s development strategy
During the 14th Five-Year Plan the Company will focus on the main business of grain oil and food conform to the country’s
new development requirements for the grain industry i.e. “agriculture head and industry tail” “grain head and food tail” “threechains integration” etc. seize the major historical opportunities of current significant historical opportunities such as the construction
of the Guangdong - Hong Kong - Macao Greater Bay Area and the construction of the Shenzhen Pilot Demonstration Area and
innovate the development strategy of “one chain two parks and N platforms” to build a regional leading “grain eastern and southerncoastal logistic corridor” with “high-quality grain source base + regional comprehensive park + urban distribution center” and create
a national first-class “smart grain oil and food supply chain quality service providers”.
3. Operation plan for the year of 2025
In 2025 SZCH will earnestly implement the guiding principles of the 20th National Congress of the Communist Party of China
and the Third Plenary Session of the 20th CPC Central Committee. Based on the functional positioning of state-owned grain
enterprises the company will focus on operational development while fully carrying out its political responsibility for safeguarding
national food security and its duty to preserve and enhance the value of state-owned assets. The company will prioritize the following
key tasks:First it will consolidate its core business in grain oil and food by improving the quality and effectiveness of reserve operations
and supply assurance capabilities while steadily developing the foundation of grain and oil storage and trade. Efforts will be made to
optimize the supply chain service system and establish a high-performing well-integrated and high-quality industrial chain.Second SZCH will focus on both internal and external coordination to cultivate new drivers of business growth. The company
will further tap into the potential of its high-quality assets strengthen and specialize its tea deep-processing segment and refine the
transformation of its Dongguan Logistics operations. Each business unit will actively explore diverse opportunities to expand
business volume; by leveraging external resources and capitalizing on its foundational strengths in the grain oil and food sectors the
company aims to expand into diversified and high value-added business areas.Third the company will accelerate the systematic development of its brand strategy. Efforts will be made to coordinate the
brand matrix enhance brand identity and deepen brand connotation with a strong focus on elevating brand influence; the company
will also expand end-market channels cultivate flagship products and strengthen competitiveness and market presence.Fourth the company will remain committed to deepening reforms and unleashing internal vitality. It will reinforce strategic
leadership coordinate short-term development goals with long-term strategies and enhance the systemic holistic and synergistic
nature of corporate reforms; the company will continue to improve its performance evaluation system to increase efficiency and drive
internal motivation.Fifth the company will comprehensively strengthen risk prevention and firmly uphold compliance standards. The company will
focus on balancing reserve expansion with storage capacity capital flow and market supply and demand. In support of the reform of
performance-linked compensation unified financial management will be implemented; it will continue to improve its internal control
system and enhance legal risk prevention; a dual-prevention system for workplace safety and food safety will be further developed
along with robust public communication and petition response mechanisms to ensure overall safety and social stability; efforts will
also be made to revitalize underperforming existing assets deepen the reform of loss-making subsidiaries and advance the disposal
of “non-core businesses and non-performing assets” thereby unlocking more resources and potential to better focus on core
operations and competitive strengths; the company will also continue to promote strategic collaboration with Shenzhen Agricultural
Power Group in areas such as industrial integration business synergy and channel sharing with the goal of achieving mutual growth
and development.
4. Potential risks and mitigation measures:
(1) Risk of price fluctuations in grain and oil trading
Ongoing geopolitical uncertainties such as the Russia-Ukraine conflict tensions in the Middle East extreme weather events and
international trade disputes have led to significant fluctuations and structural disparities in grain and oil prices both domestically and
internationally. These risks may impact the company’s profitability and could result in fluctuations in the value of inventories.To mitigate these risks the company will enhance its market forecasting capabilities establish strategic partnerships implement
refined procurement and sales management strengthen internal coordination and optimize its product portfolio in a targeted manner.These efforts aim to reduce the adverse impacts of grain and oil price volatility on the company’s operations.
(2) Food safety risks
“Quality safety” is the lifeline for the sustainable development of enterprises and food safety is an inviolable red line.Regulatory authorities have promulgated a series of regulations and systems from top to bottom targeting food safety hazards
corporate responsibilities production management compliance quality safety inspections and risk monitoring and control aiming to
implement the requirements of “the four strictest supervision of food safety”. Based on the diversified development of current
product categories and business formats the company has issued the “SZCH Food Quality Safety Management Measures” covering
grain and non-grain food categories and their key business processes to align with the existing company’s business model anddiversified product quality management. This system serving as the superior system for the company’s food safety management fills
the gaps in previous system levels clarifies key position responsibilities strengthens supervision over key processes and refines and
standardizes daily food quality safety management work from five aspects: on-site inspection checklists enterprise self-inspection
reporting training drill records product information ledger ensuring that food products meet quality standards hygiene standards
and relevant regulatory requirements.
(3) Risk of intensified market competition
As a representative enterprise of regional grain oil and food business compared with central enterprises and large multinational
grain oil and food enterprises the company still has a certain gap in scale and brand awareness. In the future the competition in the
grain oil and food industry will become more intense if the company cannot effectively promote its own brand and broaden its
marketing channels it may face greater risks when market competition intensifies.In response to possible market and business risks firstly the company makes overall plans for annual procurement carefully
optimizes procurement channels and ensures sufficient grain supply and orderly supply. Secondly the company continues to
strengthen communication with upstream and downstream customers in the industry chain vigorously expands sales channels
focuses on customer needs deepens brand and service and enhances the company's brand value and competitiveness. Thirdly
promote brand building strengthen brand communication and cooperation within the industry explore high-quality brand element
resources create unified brand application standards and gradually establish brand advantages.XII. Reception of research communication and interview during the reporting period
□Applicable □Not applicable
Reception Main content
Reception time Reception Receptionplace mode object
Reception talked about and Index of basic situation
type Object materials of researchprovided
For details please refer tothe “InvestorCommunication Record
Online Value Network All 2023 annual Form of the Company'sMay 8 2024 www.ir- platform online Other performance 2022Annual Performanceonline.cn communication investors briefing Explanation Meeting”
disclosed on Juchao
Website (www.cninfo.com. cn) on May 8 2024
The company's
business
operation
dividend
distribution the
impact of For details please refer toVIP room on E Fund fluctuations in the “Company Investorth Relations Activity RecordNovember 12 2024 the 13 floor Spot Institution Investment grain and oilof the investigation CITIC prices on the Form” disclosed on
company Securities company's Juchao Website
performance (www.cninfo. com. cn) on
and the November 12 2024
company's
corresponding
countermeasures
etc.XIII. The formulation and implementation of the market capitalization management system
and valuation enhancement plan
Whether the company formulated a market capitalization management system or not
□Yes□No
Whether the company disclosed the valuation enhancement plan or not
□Yes□No
XIV. Implementation of the Action Plan for “Double Improvement of Quality and Return”
Whether the company disclosed the Action Plan for “Double Improvement of Quality and Return” or not
□Yes□NoSection IV Corporate Governance
I. Corporate governance of the Company
During the reporting period the Company constantly improved the corporate governance structure improved the quality of
corporate governance and established a sound internal control system strictly in accordance with corporate governance requirements
of normative documents released by the Company Law Securities Law Corporate Governance Guidelines and Standard Operational
Guidelines to Main Board Listed Companies of Shenzhen Stock Exchange. The Company continued to carry out the governance
activities improved the standard operation level and safeguarded the legitimate interests of the Company and investors.Accountability among Shareholders’ General Meeting the Board of Directors and the board of supervisors were clear. We
strictly implemented the rules from the Articles of Association during the reporting period as well as work regulations and other basic
management system to ensure the effective implementation of the internal control system.The Company received no relevant documents with administrative regulation concerned from regulatory authorities in
reporting period and has no particular about rectification within a time limit. From point of the Board corporate governance of the
Company shows no difference to requirement from relevant documents with actual condition.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate
governance for listed Company from CSRC
□ Yes □ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed Company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets personnel finance organization and businesses
By the end of the reporting period Shenzhen Agricultural Power Group is the actual controller of the Company. The Company
in strict accordance with the governance rules of listed companies and other relevant provisions completely separates from the
controlling shareholders in business finance personnel assets organizations and has independent full business and self-
management ability.
1. Independent Business:
The business of the Company is independent from controlling shareholders and has complete business and self-management ability
and is not dependent on the shareholders and their affiliated enterprises which has no competition with controlling shareholder and
its subordinate enterprises. The controlling shareholder has no direct or indirect intervention in the Company business activities.
2. Independent Staff:
The Company has special organization to manage labor and payment and has independent perfect personnel system and collective
management system. General Manager of the Company as well as deputy GM secretary of the Board CFO and other senior
executives receive remuneration from the Company and don’t receive remuneration from shareholders’ unit and subordinate
enterprises and holding the post except director or supervisor.
3. Independent Assets:
The Company has independent and integrity asset structure; There is no situation where funds or assets of the company are occupiedby controlling shareholders for non-operational purposes.
4. Independent Organization:
The Company has set up a sound organizational structure system and operates independently; there is no mixed operation between
the Company and controlling shareholders.
5. Financial Independence:
The Company with independent financial department has set up independent accounting system and financial management system
and makes financial decision independently. With independent bank accounts and tax payment the Company strictly follows the
financial system and has independent operation and standardized management.III. Horizontal Competition
□ Applicable□ Not applicable
IV. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
held during the reporting period
1. Annual General Meeting in the reporting period
Ratio of
Ordinal number of
meetings Type
investor
participati Date Date of disclosure Resolutions
on
Resolutions of the 1st
Extraordinary General
The 1st
extraordinary Extraordinary
Meeting of Shareholders
general of 2024 (Notice No.general meeting of meeting of 72.13% 2024-01-09 2024-01-10 2024-02) disclosed onshareholders of shareholders Juchao2024 Website(www.cninfo.co
m.cn) on January 10
2024
Resolutions of the
Annual General Meeting
Annual General of 2023 (Notice No.Meeting of 2023 AGM 72.14% 2024-05-07 2024-05-08 2024-15) disclosed onJuchao
Website(www.cninfo.co
m.cn) on May 8 2024
Resolutions of the 2nd
Extraordinary General
The 2nd Extraordinary Meeting of Shareholdersextraordinary of 2024 (Notice No.general meeting of generalmeeting of 72.27% 2024-11-14 2024-11-15 2024-26) disclosed onshareholders of
2024 shareholders
Juchao
Website(www.cninfo.co
m.cn) on November 15
2024
2. Request for extraordinary general meeting by preferred stockholders whose voting rights are restored
□ Applicable□ Not applicableV. Directors supervisors and senior executives
1. Basic information
Start End Shares Number of Number ofshares shares Shares
Reasons
dated date held at Other held at for
Name Gender Age Title Working of of period- increased decreased increasestatus office office begin in current in current
changes period- or
term term (share) period period
(share) end
(share) decrease(share) (share) of shares
Party
Wang Male 53 Secretary Currently 2023- 2026-Zhikai Chairman of in office 11-03 11-03 0 0 0 0 0 -
BOD
Gu Cheng Male 51 Director Currently 2023- 2026-in office 11-03 11-03 0 0 0 0 0 -
Zhang Male 51 Director Currently 2023- 2026-Guoyuan in office 11-03 11-03 0 0 0 0 0 -
Zheng Deputy Party
Xiangpeng Male 49 Secretary
Currently 2023- 2026-
Director in office 11-03 11-03
00000-
Lu Yuhe Female 47 Director CFO Currently 2021- 2026-in office 08-02 11-03 0 0 0 0 0 -
Zhao Male 68 Independent Currently 2019- 2026-Rubing director in office 02-21 11-03 0 0 0 0 0 -
Bi Weimin Female 68 Independent Currently 2019- 2026-director in office 02-21 11-03 0 0 0 0 0 -
Liu Male 53 Independent Currently 2019- 2026-Haifeng director in office 02-21 11-03 0 0 0 0 0 -
You
Hongxia Female 53 Supervisor
Currently 2023- 2026-
in office 11-03 11-03 0 0 0 0 0 -
Liu
Xinqing Female 52 Supervisor
Currently 2023- 2026-
in office 11-03 11-03 0 0 0 0 0 -
Deputy Party
Zheng Male 57 Secretary Currently 2019- 2026-Shengqiao employee in office 02-21 11-03 0 0 0 0 0 -
supervisor
Ma Male 60 Employee Currently 2019- 2026-Zenghai supervisor in office 02-21 11-03 0 0 0 0 0 -
Member of the
Party
Chen Committee
Xiaohua Male 58 Deputy GM
Currently 2020- 2026-
and Secretary in office 08-24 11-03
00000-
of the Board
of Directors
Member of the
Shen Hua Male 49 Party Currently 2023- 2026-Committee in office 11-03 11-03 0 0 0 0 0 -
Deputy GM
Member of the
Xiao Hui Male 46 Party Currently 2020- 2026-Committee in office 02-28 11-03 0 0 0 0 0 -
Deputy GM
Member of the
Du Party Currently 2023- 2026-
Jianguo Male 51 Committee in office 11-03 11-03 0 0 0 0 0 -
Deputy GM
Hu Deputy Party Leaving 2019- 2024-
Xianghai Male 60 SecretaryDirector GM office 02-21 11-27
00000-
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period whether there is any departure of directors and supervisors and dismissal of senior executives or not
□ Yes □ No
1. On November 17 2024 the board of directors of the company received a written resignation report submitted by Mr. Hu Xianghai
the deputy secretary of the company's Party committee director and GM. Due to reaching the legal retirement age Mr. Hu Xianghai
applied to resign from the positions of director and GM of the company and will no longer hold any other positions in the company
after resignation.Changes of directors supervisors and senior executives
□Applicable □Not applicable
Name Title Type Date Reason
Hu Xianghai Director Resigned 2024-11-17 Retire
Hu Xianghai GM Dismissed 2024-11-17 Retire
2.Post-holding
Professional background major working experience and present main responsibilities in Company of directors supervisors and
senior executive
(i) Director
Mr. Wang Zhikai: Born in 1971 holds a master’s degree. Formerly served as deputy director and director of the Enterprise Second
Division of the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People’s Government
and Director of the Strategic Development Division; deputy GM and Party Committee Member of Shenzhen Talent Anju Group Co.Ltd. He is currently member of the Party Committee of Shenzhen Agricultural Power Group Co. Ltd the secretary of the company's
Party Committee and Chairman.Mr. Gu Cheng: Born in 1973 hold a master’s degree. He formerly served as the Secretary of the Youth League Committee of the
Education Bureau of Longgang District Shenzhen; the director and deputy director of the Office of the Shenzhen Federation of
Trade Unions minister of Legal Work minister of Grassroots Organization Construction Minister of Grassroots Organization
Construction and Economic Work member of the Party Group and vice chairman of the Shenzhen Federation of Trade Unions;
member of the Party Working Committee of Shenzhen’s Two New Organizations; and members of the Shenzhen Municipal
Committee of the Chinese People’s Political Consultative Conference and other positions. Now he is the deputy secretary of the
Party Committee and director of Shenzhen Agricultural Power Group Co. Ltd; supervisor of Shenzhen Agricultural Products Group
Co. Ltd; and director of the company.Mr. Zhang Guoyuan: Born in 1973 holds a master’s degree. He previously served as a cadre of Shenzhen Special Zone Development
Company; employee of Shenzhen Yantian District Investment Service Center; member of the Investment Promotion Department and
deputy director of the Office of the Yantian District Economic and Trade Bureau in Shenzhen; deputy chief staff member and chief
staff member of the Supervision and Inspection Department of Shenzhen State-owned Assets Supervision and Administration
Commission; director of the Supervision and Inspection Department of Shenzhen State-owned Assets Supervision and
Administration Bureau; Director Deputy Director and Director of the Supervision and Inspection Department of the State owned
Assets Supervision and Administration Commission of the Shenzhen Municipal People’s Government; Director of the Property
Rights Management and Regulations Department of the State owned Assets Supervision and Administration Commission of the
Shenzhen Municipal People’s Government. He is currently member of the Party Committee and deputy GM of Shenzhen
Agricultural Power Group Co. Ltd and director of the company.Mr. Zheng Xiangpeng: Born in 1975 holds a bachelor’s degree and is a senior journalist. He formerly served as an editor and
journalist for Shenzhen Special Zone Daily deputy director of the Political News Department (in current period he was appointed as
a member of the Longgang Street Party Working Committee and Deputy Director of the Office) deputy director and director of the
Regional News Department and member of Shenzhen Special Zone Daily Editorial Committee; assistant to the President of
Shenzhen Press Group director of the Office of Shenzhen Press Group and chairman of Shenzhen Press Education Media Group;
deputy secretary of the Party Committee director and chairman of the Trade Union of Shenzhen Food Materials Group Co. Ltd. He
is current deputy secretary and director of the company’s Party Committee.Ms. Lu Yuhe: born in 1977 master’s degree and CPA. She previously worked as the senior auditor of Ernst & Young; the
independent non-executive director Director and CFO of China Trends Holdings Limited; CFO of VIEIN; Director and CFO of theShenzhen Exhibition & Convention Center Management Co. Ltd. the Director and CFO of Shenzhen Tong Chan Group and CFO of
Shenzhen Yinhu Convention Center (Hotel) Co. Ltd. Now she is the Director and CFO of the Company.Mr. Zhao Rubin: born in 1956 master’s degree and professor of engineering. He successively served as the director and secretary of
Gezhouba Station for EHVDC transmission from Gezhouba to Shanghai; director of office and director of foreign affairs office of
Gezhouba Hydro-power Plant; the secretary of party group and GM of Huaneng South Development Company; party secretary and
GM of Huaneng Real Estate Development Company; Director deputy president deputy party secretary of Great Wall Securities;
president of Jingshun Great Wall Fund Management Co. Ltd.; deputy president of Sunshine Insurance Assets Management
Corporation Limited; the outside director of Shenzhen Cereals Group Co. Ltd; independent director of Bros Eastern Co. Ltd. Now
he serves as independent director of the Company; independent director of Southwest Securities Co. Ltd and Director of Bosera
Fund Management Co. Ltd.Ms. Bi Weimin: born in 1956 doctor’s degree and a senior accountant. She successively served as engineer of the Gezhouba Power
Plant assistant director and deputy director; deputy president and director of Three Gorges Finance Company; chief economist and
supervisor of China Yangtze Power Co. Ltd.; deputy chief accountant of China Three Gorges Corporation the member of
investment committee and director of asset finance dept. As well as the director of enterprise management dept and legal affairs
department. Now she serves as the independent director of the Company.Mr. Liu Haifeng: born in 1971 doctor’ degree and a lawyer. He successively served as director of legal department of Shenzhen
Property Development (Group); the partner of Guangdong Xintong Laws Firm. Now he serves as independent director of the
Company and the independent director of Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd and first-level partner of
Guangdong Hancheng Laws Firm.(ii)Supervisor
Ms. You Hongxia: Born in 1971 holds a master’s degree and is a senior accountant and registered accountant. He formerly served as
a member of the Biotechnology Department of the Building Materials Bureau of Exi Prefecture and was appointed as an assistant to
the district chief of Huangjindong District in Xianfeng lecturer at the Department of Business and Economics School of Economics
and Trade Huazhong Agricultural University financial manager of Shenzhen Shenbao Industrial Co. Ltd. secretary of the GM’s
Office assistant to the Minister of Finance and Accounting and assistant to the Minister of Human Resources; assistant to the
Minister of Finance of Shenzhen Shenbao Sanjing Food and Beverage Development Co. Ltd assistant director of the Office of the
Board of Directors of Shenzhen Shenbao Industrial Co. Ltd; accounting deputy director of Audit Department director of Risk
Control Office director of Risk Control Department of Finance and Information Center director of Risk Control Department of
Audit Risk Control Center and Deputy General Manager of Audit Risk Control Center of Shenzhen Agricultural Products Co. Ltd;
deputy GM (in charge of work) and GM of the Audit Risk Management Headquarters of Shenzhen Agricultural Products Group Co.Ltd. She is current GM of the Audit Risk Control Department of Shenzhen Agricultural Power Group Co. Ltd and the supervisor of
the Company.Ms. Liu Xinqing: Born in 1972 holds a bachelor’s degree and is a registered management accountant. She has previously served as
an accountant of Shantou Special Economic Zone Foreign Commercial Corporation the employee accountant cashier in charge of
the finance and accounting department chief clerk assistant to the department head senior manager deputy director of the fund
settlement and operation center deputy director of the finance and accounting department deputy general manager and head of the
fund operation department of the finance and information center head of the fund operation department of the finance center and
deputy general manager of the finance center of Shenzhen Agricultural Products Co. Ltd. GM of Shenzhen Agricultural Products
Small Loan Co. Ltd deputy GM of the Financial Management Headquarters (Fund Management Center) of Shenzhen Agricultural
Products Group Co. Ltd GM of Shenzhen Agricultural Products Financing Guarantee Co. Ltd GM of the Financial Management
Headquarters (Fund Management Center) of Shenzhen Agricultural Products Group Co. Ltd. She is currently GM of the Planning
and Finance Department of Shenzhen Agricultural Power Group Co. Ltd and the supervisor of the Company.Mr. Zheng Shengqiao born in 1967 holds a bachelor degree and an intermediate accountant. He successively served as member of
the special representative office of the state audit administration in Guangzhou; deputy manager of accounting department of Hong
Kong Yuehai Enterprise (Group) Co. Ltd; deputy GM of CTS Logistics; CFO of the AVSHD Technology Co. Ltd; the deputy
director of finance department deputy director of enterprise management department director of board office deputy secretary of
discipline inspection commission secretary of the BOS and director of discipline inspection and supervision office (office of BOS)
of the Shenzhen Cereals Group Co. Ltd. Now he serves as the staff supervisor deputy secretary of discipline inspection commission
and director of discipline inspection and supervision office (office of BOS) of the Company.Mr. Ma Zenghai: born in 1964 master’s degree and an intermediate economist lecturer. He successively served as the general
representative of Thailand project in Shenzhen Cereals Group Co. Ltd; president and GM of Shenzhen Hualian Grain & Oil Trade
Co. ltd.; GM and secretary of the Party branch of Grease branch of Shenzhen Cereals Group Co. Ltd; head of the risk management
department of Shenzhen Cereals Group Co. Ltd. Now he serves as staff supervisor and head of the risk management and internal
audit department of the company.(iii) Senior executives
Mr. Chen Xiaohua born in 1966 holds a master’s degree and is an economic manager. He served successively as chief of the
secretarial section deputy director and director of the office of the board of directors and secretary of the board director and vice
president of Shenzhen Agricultural Products Group Co. Ltd. concurrently served as chairman of Guangxi Higreen International
Logistics Co. Ltd. chairman of Tianjin Higreen Agricultural Products Market Management Co. Ltd. and chairman of Tianjin
Higreen Agricultural Products Logistics Co. Ltd. He currently serves as the member of party committee deputy general manager
and secretary of the board of the company.Mr. Shen Hua: Born in 1975 holds master’s degree and is an economist. He has formerly served as the deputy manager of the
Management Department of Shenzhen Buji Agricultural Products Wholesale Center deputy GM GM and Chairman of Nanchang
Shenzhen Agricultural Products Wholesale Market Co. Ltd. and deputy GM of Shenzhen Agricultural Products Group Co. Ltd. He
currently serves as member of the party committee and deputy GM of the Company.Mr. Xiao Hui born in 1978 holds a master’s degree and is a master of finance and a master of business administration. He served as
a staff member of the Personnel and Education Department and a staff member a deputy chief staff member a chief staff member
deputy director and director of the General Office of the People's Bank of China; and the deputy head of the Nanshan District
People’s Government. He currently serves as the member of party committee and deputy GM of the company.Mr. Du Jianguo: Born in 1973 holds a master’s degree and an economist. He has formerly served as a clerk in the Comprehensive
Control Department of Qingdao Price Bureau. deputy director of the GM's Office of Shenzhen Agricultural Products Co. Ltd
chairman of Changsha Mawangdui Agricultural Products Co. Ltd director of the GM’s Office and director of the Transportation
Department of Shenzhen Agricultural Products Co. Ltd chairman of Shenzhen Zhongnong Aquatic Products Co. Ltd. and Chairman
of Shenzhen Buji Seafood Market Co. Ltd investment director of the Investment Department of Shenzhen Cereals Group Co. Ltd;
Minister of Investment Department and Secretary of the Board of Directors of Shenzhen Duoxi Equity Investment Fund Management
Co. Ltd. Chairman of Dongguan Shengliang Logistics Co. Ltd; Member of the Party Committee Deputy General Manager and
Chairman of Shenzhen Zhenchu Supply Chain Co. Ltd. of Shenzhen Food Materials Group Co. Ltd. Current member of the
company's party committee and deputy general manager.Post-holding in shareholding entities
□Applicable □Not applicable
Name Name of shareholding Positions held in Start dated End date Whether receiving
entities shareholder units of office of office remuneration from
term term shareholding entities(Y/N)Wang Zhikai Shenzhen Member of the Party 2023-09- N
Agricultural Power Committee 01
Group Co. Ltd.Gu Cheng Shenzhen Deputy Secretary of the 2022-09- Y
Agricultural Power Party Committee 01
Group Co. Ltd. Director
Gu Cheng Shenzhen Supervisor 2023-01- N
Agricultural Products 17
Group Co. Ltd
Zhang Guoyuan Shenzhen Member of the Party 2023-08- Y
Agricultural Power Committee Deputy 01
Group Co. Ltd. GM
You Hongxia Shenzhen General Manager of 2023-10- Y
Agricultural Power Audit and Risk Control 01
Group Co. Ltd. Department
Liu Xinqing Shenzhen General Manager of 2023-10- Y
Agricultural Power Planning and Finance 01
Group Co. Ltd. Department
Explanation of NO
employment in
shareholder units
Post-holding in other entities
□Applicable □Not applicable
Whether
Name Name of other Start dated of office End date of office
receiving
entities Position term term remunerationfrom other
entities(Y/N)
Bosera Fund
Zhao Rubing Management Co. Independentdirector 2017-12-01 2024-09-21 YLtd.Guangdong
Liu Haifeng Hancheng Laws First-level partner 2007-02-01 Y
Firm
Shenzhen Special
Liu Haifeng Economic Zone IndependentReal Estate director 2024-05-17 Y
(Group) Co. Ltd.Punishment of securities regulatory authorities in recent three years to the Company’s current and former directors supervisors and
senior executives during the reporting period
□Applicable □Not applicable
3. Remuneration for directors supervisors and senior executives
Decision-making procedures determination bases and actual payment of remunerations of directors supervisors and senior
executives
During the reporting period according to the Company Performance Management Measures the remuneration and appraisal
committee of the Company’s board of directors combined with the Company’s annual business situation and individual performance
appraisal result and determined the salary of senior executives. During the reporting period the subsidiary standard of independent
directors is subject to the resolution by the Fifth Extraordinary General Meeting of 2019 and adjusted as 138000 yuan (tax inclusive)
per year for one person.Remuneration for directors supervisors and senior executives in reporting periodUnit: 10 thousand Yuan
Name Gender Age Title Post-holding Total Whether
status remuneration remuneration
obtained from obtained from
the Company related party of
the
Company(Y/N)
Wang Zhikai Male 53 Party Secretary and Chairman Currently in 88.01 N
office
GuCheng Male 51 Director Currently in 0 Y
office
ZhangGuoyuan Male 51 Director Currently in 0 Y
office
Zheng Male 49 Deputy Secretary of the Party Currently in 76.97 N
Xiangpeng Committee Director office
Lu Yuhe Female 47 Director and CFO Currently in 50 Y
office
Zhao Rubing Male 68 Independent director Currently in 13.8 N
office
Bi Weimin Female 68 Independent director Currently in 13.8 N
office
Liu Haifeng Male 53 Independent director Currently in 13.8 N
office
Zheng Male 57 Deputy Secretary of the Currently in 108.26 N
Shengqiao Commission for Discipline office
Inspection and employee
supervisor
Ma Zenghai Male 60 Employee supervisor Currently in 96.96 N
office
Chen Xiaohua Male 58 Party Committee Member Currently in 115.21 N
Deputy GM and Secretary of office
the Board of Directors
Shen Hua Male 49 Party Committee Member Currently in 76.81 N
Deputy GM office
Xiao Hui Male 46 Party Committee Member Currently in 123.62 N
Deputy GM office
Du Jianguo Male 51 Party Committee Member Currently in 76.03 N
Deputy GM office
Hu Xianghai Male 60 Former Deputy Secretary of the Left office 136.66 N
Party Committee Director and
General Manager
Total -- -- -- -- 989.93 --
Other explanation
□Applicable □Not applicable
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Meeting Date of meeting Disclosure date Meeting resolutionsThe “Resolution of the 5th meeting ofthThe 5th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-01-19 2024-01-20 2024-03) released on Juchao Website(www.cninfo.com.cn) on January 20
2024The “Resolution of the 6th meeting ofthThe 6th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-04-01 2024-04-02 2024-04) released on Juchao Website(www.cninfo.com.cn) on April 2
2024
The 7th meeting of 11th session of the th
BOD 2024-04-12 2024-04-16The “Resolution of the 7 meeting of
11th session of the BOD” (Notice No.:2024-05) released on Juchao Website
(www.cninfo.com.cn) on April 16
2024The “Resolution of the 8thmeeting ofthThe 8th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-04-25 2024-04-26 2024-10) released on Juchao Website(www.cninfo.com.cn) on April 26
2024The “Resolution of the 9th meeting ofThe 9th meeting of 11th session of the 11th session of the BOD” (Notice No.:
BOD 2024-08-23 2024-08-27 2024-17) released on Juchao Website(www.cninfo.com.cn) on August 27
2024The “Resolution of the 10th meeting ofthThe 10th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-10-25 2024-10-29 2024-10) released on Juchao Website(www.cninfo.com.cn) on Oct. 29
2024The “Resolution of the 11th meeting ofthThe 11th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-11-14 2024-11-15 2024-25) released on Juchao Website(www.cninfo.com.cn) on Nov. 15
2024The “Resolution of the 12th meeting ofthThe 12th meeting of 11th session of the 11 session of the BOD” (Notice No.:
BOD 2024-12-30 2024-12-31 2024-28) released on Juchao Website(www.cninfo.com.cn) on Dec. 31
2024
2. The attendance of directors to Board meetings and shareholders general meeting
The attendance of directors to Board Meeting and Shareholders General Meeting
Times of Board Times of Times of Absent the Times of
Director meeting supposed Times of attending the Board entrusted Times of Meeting for the attend theto attend in the presence Meeting by presence Absence second time in generalreporting period communication a row (Y/N) meeting
Wang
Zhikai 8 8 0 0 0 N 3
Gu Cheng 8 5 2 1 0 N 0
Zhang
Guoyuan 8 5 2 1 0 N 1
Zheng
Xiangpeng 8 8 0 0 0 N 3
Lu Yuhe 8 6 2 0 0 N 2
Zhao
Rubing 8 6 2 0 0 N 3
Bi Weimin 8 6 2 0 0 N 2
Liu
Haifeng 8 7 1 0 0 N 3
Hu
Xianghai 7 6 0 1 0 N 1
Explanation of not attending the board meeting in person for two consecutive times
Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes □ No
No directors come up with objection about Company’s relevant matters in the Period4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
□ Yes □ No
Explanation on whether the director’s proposal about the Company has been or has not been adopted
During the reporting period independent directors of the Company were in strict accordance with provisions of Articles of
Association the Company Law Guidance to Establishment of Independent Director System in Listed Companies and other relevant
laws and regulations and actively attended board meetings shareholders’ meetings. The independent directors of the company issued
independent professional opinions for important issues paid sustained attention to company’s operation inspected and guided the
operation and management work of the company from time to time learned about internal control system implementation progress
of the equity investment project etc. continued to enhance consciousness of performing duties according to provisions of law and
expressed independent and impartial advice for investment outside related party transactions hiring auditors and other matters
occurred during the reporting period in time. Duties performance of independent directors has improved the corporate governance
structure and safeguarded the interests of the Company and its shareholders. From performance of duties of independent directors
please refer to “2024 Annual Work Report of Independent Directors” disclosed in www.cninfo.com.cn.VII. Performance of Duties by Specialized Committees under the Board Meeting in the
Reporting Period
Number Specific
Committee of Date of Important Other circumstances
name Members meetings meeting Meeting content comments and performance of the
held suggestions made of duties objection (ifapplicable)
Deliberated the
Proposal on
2024- Revising the
01-19 Company’s Internal - - Nil
Audit Management
System
1. Deliberated SZCH
2023 Annual
Internal Control
Evaluation Report;
2. Deliberated SZCH
2023 Annual Evaluated the
Financial Report performance of
The Audit Bi 3. Deliberated the the accounting
Committee of Weimin 2024- Report on the firm in 2023 and
the 11th session Zhao 04-12 Evaluation of the summarized the - Nil
of Board of Rufing 5 Accounting Firm’s supervision
Directors of the Zhang Performance in 2023 responsibilities
Company Guoyuan and the Report on fulfilled by the
the Audit audit committee.Committee’s
Performance of
Supervision
Responsibilities
1. Deliberated
SZCH 2024 First
2024- Quarter Financial
04-25 Report - - Nil
2. Deliberated
SZCH 2023 Annual
Internal ControlSystem Work Report
3. Deliberated
SZCH 2024 Annual
Major Risk
Assessment Report
4. Deliberated
SZCH 2024 Annual
Internal Audit and
Post-Investment
Evaluation Work
Plan
Deliberated the
2024- SZCH 2024 Semi-
08-23 Annual Financial - - Nil
Report
1.Deliberated SZCH
2024 Third Quarter Proposal to
Financial Report Reappoint Grant
2. Deliberated the Thornton China
Proposal to Propose (Special General
2024- Reappointing Grant Partnership) as
10-25 Thornton China the company’s - Nil
(Special General financial audit
Partnership) as the and internal
Company’s 2024 control audit
Annual Audit institution for
Institution 2024.Deliberated the
2024- Proposal on the
04-12 Remuneration of - - NilDirectors and Senior
Executives of the
Company for 2023
Deliberated SZCH
2023 Annual
Assessment Work
Plan for Members of
2024- the Company’s
10-25 Management Team - - Nil
(Including the Board
The Secretary) and Full-
Remuneration Time Deputy
and Assessment Zhao Secretary of theCommittee of Rubing Party Committeethe Audit
Committee of Bi 4 Deliberated the
the 11th session Weimin
of Board of Lu Yuhe
Proposal on the 2024
Annual Business
Directors of the 2024- Performance
Company 11-14 Responsibility - - Nil
Statement for
Members of the
Company’s
Management Team
Deliberated the
Proposal on the 2023
Annual Assessment
2024- Results and
12-30 Remuneration - - NilDistribution Plan for
the Company's
Management Team
(Including the Board
Secretary) and Full-Time Deputy
Secretary of the
Party Committee
Deliberated the
Proposal on the
Phase IV Quasi-Low
2024- Temperature Rice
01-19 Warehouse - - NilExpansion and
Supporting
Transformer Project
of Pinghu Grain
Depot.
2024- Deliberated SZCH
04-25 2024 Annual - - NilComprehensive
Budget Draft
Deliberated the
Proposal on the
Project of Shenzhen
Hualian Grain and
2024- Oil Trading Co.
08-23 Ltd. Acquiring the - - Nil
49% Minority
Shareholders' Equity
The Strategy of Shuangyashan
Committee of WangZhikai Shenliang Cerealsthe 11th session Zhao 4 Base Co. Ltd.of Board of
Directors of the Rufing
Company Gu Cheng
1. Deliberated the
Proposal on SZCH
2025 Annual
External Financing
Plan
2. Deliberated the
Proposal on
Revising the
Company’s
Comprehensive
Budget Management
Measures
2024- 3. Deliberated the
12-30 Proposal on the - - Nil
Capital Increase
Project of SZCG for
Shenzhen Shenliang
Big Kitchen Food
Supply Chain Co.Ltd;
(4) Deliberated the
Proposal on the
Capital Increase
Project of SZCG for
Shenzhen Hualian
Grain and Oil
Trading Co. Ltd.The Nomination Zhao
Committee of Rubing
the 11th session Wang
of Board of Zhikai 0 - - - Nil
Directors of the Liu
Company HaifengVIII. Works of the Board of Supervisors
Does the board of supervisors discover any risks in the company during its supervisory activities during the reporting period
□ Yes □ No
The board of supervisors has no objection about supervision events in reporting period
IX. Particulars of workforce
1. Number of Employees Professional composition Education background
Employee in-post of the parent Company at period-end (people) 142
Employee in-post of main subsidiaries at period-end (people) 1020
The total number of current employees at period-end (people) 1162
The total number of current employees to receive pay (people) 1162
Retired employee’ s expenses born by the parent Company and
0
main subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 256
Salesperson 136
Technicians 210
Financial personnel 102
Administrative personnel 458
Total 1162
Education background
Education Numbers (people)
Postgraduate 142
Undergraduate 375
College 248
Junior college 84
High school and below 313
Total 1162
2. Remuneration Policy
During the reporting period employee wages was paid monthly according to salary management provisions set by the
Company and the performance-related pay was issued based on the actual situation of benefit and individual performance
assessment results at the year-end remuneration and benefit are connected as a whole.
3. Training Plan
In 2024 based on the deepening of the implementation of a classified and layered talent training plan the role characteristics of
the phased population were sorted out from the perspective of organizational development and talent demand focusing on the talent
management pyramid that has been gradually built in the early stage. Based on the construction of talent echelons training goals and
directions were formed while actively responding to the training needs of higher-level units to carry out training effectively.Continuously improved the professional level and ability of talent cultivation in the company achieved efficient utilization of
resources and provided a continuous source of intelligence for the company’s development.4. Labor outsourcing
□ Applicable□ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
Formulation Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the Reporting
Period
□ Applicable □ Not applicable
The profit distribution policy of the Company is specified in the Article of Association as:
(1) Profit distribution of the Company should pay attention to the reasonable investment return to investors and the profit
distribution policy should maintain continuity and stability;
(2) The Company may distribute dividends in the form of cash or a combination of cash and stocks and may pay interim cash
dividends;
(3) The following conditions shall be met at the same time when the Company intends to implement cash dividends:
1. Earnings per share for the year is not less than 0.1 yuan;
2. The audit institution shall issue a standard unqualified audit report on the company’s annual financial report;
3. The company has no major investment plans or major cash expenditures (except for fund-raising projects). Major investment plans
or major cash expenditures refer to the cumulative expenditures that the company intends to invest acquire assets or purchase
equipment in the next twelve months reach or exceed 30% of the company’s most recent audited total assets and exceed 50 million
yuan;
(4) In principle the company’s annual profits distributed in cash should not be less than 10% of the attributable profits realized in the
year; and the company’s cumulative profits distributed in cash in the last 3 years should not be less than 30% of the annual average
attributable profits realized in the last 3 years. Under the premise of ensuring the distribution of cash profits the company can
additionally adopt the method of stock dividend distribution for profit distribution; the company’s annual profit distribution amount
shall not exceed the company’s accumulated undistributed profits at the end of the year and shall not damage the company’s ability
to continue operations;
(5) The specific profit distribution plan shall be drawn up by the board of directors and submitted to the general meeting of
shareholders for deliberation. The company provides a variety of ways to accept the recommendations and supervision of all
shareholders independent directors and supervisors on the company’s dividends distribution. If the annual reporting period is
profitable but the board of directors does not propose a cash dividend plan in accordance with the Articles of Association it shall be
disclosed in the periodic report the reasons for not proposing a cash dividend plan in accordance with the Articles of Association and
the purpose of funds not used for dividends but retained by the company. The independent directors shall express independent
opinions on this purpose. In addition to on-site meetings the company shall also provide shareholders with an online voting platform
when convening a general meeting of shareholders;
(6) If the company has not distributed cash profits in the last 3 years it cannot issue new shares to the public issue convertible
corporate bonds or allot shares to original shareholders;(7) Where a shareholder illegally occupies the company’s funds the company shall deduct the cash dividends distributed to the
shareholder in order to repay the capital occupied;
(8) When the company adjusts its profit distribution policy it should take the protection of shareholders especially small and
medium shareholders’ rights and interests as the starting point for detailed argumentation and the board of directors should submit it
to the general meeting of shareholders for review and approval by a special resolution while independent directors should express
clear independent opinions;
(9) The company provides multiple channels (telephone fax e-mail interactive platform etc.) to accept all shareholders’ suggestions
and supervision on the company's dividends.The foreign exchange conversion rate of domestically-listed foreign share dividends is calculated based on the central parity rate of
Hong Kong dollar against RMB announced by the People’s Bank of China on the first working day after the resolution date of the
general meeting of shareholders.During the reporting period the company’s profit distribution complied with the company’s articles of association and review
procedures and fully protected the legitimate rights and interests of small and medium investors. Independent directors expressed
their opinions and the profit distribution procedures were compliant and transparent. During the reporting period the company’s
profit distribution policy has not been adjusted or changed.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of
Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion
(Y/N): Y
Completed relevant decision-making process and mechanism
(Y/N): Y
Independent directors perform duties completely and play a
proper role (Y/N): Y
If the company does not distribute cash dividends specific
reasons should be disclosed as well as the measures to be Y
taken next to enhance investor returns:
Minority shareholders have opportunity to express opinions
and demands totally and their legal rights are fully protected Y
(Y/N):
Condition and procedures are compliance and transparent
while the cash bonus policy adjusted or changed (Y/N): NA
The Company gains profits in reporting period and the parent company has positive profit available for distribution to shareholders of
the parent company but no cash dividend distribution plan has been proposed
□ Applicable□ Not applicable
Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (tax inclusive) 1.5
Equity base of distribution plan (Share) 1152535254
Cash bonus distribution (RMB) (tax inclusive) 172880288.10
Cash bonus distribution in other ways (i.e. share buy-backs)
0.00
(RMB)
Total cash bonus (including other ways) (RMB) 172880288.10
Profit available for distribution (RMB) 1388762768.13Ratio of total cash dividend (other ways included) in total profit
100%
distribution
Cash dividend
In case the Company is in a development stage and has the arrangement of major capital expenses the ratio of cash dividend in
profit distribution should reach a minimum of 20% in profit distribution.Detailed explanation on profit distribution or capital accumulation fund conversion plan
After audited by Grant Thornton Certified Public Accountant LLP (Special General Partnership) in consolidate statements for
year of 2024 the net profit attributable to shareholders of parent company amounted to 325309578.52 yuan; As of Dec. 31 2024
the profit of parent company that can be distributed for shareholders was 1388762768.13 yuan.In accordance with relevant regulations and Article of Association combined with the actual development needs of the Company
and in consideration of the interests of shareholders BOD plans to submit the equity distribution plan for year of 2024 to
shareholders general meeting: based on total share capital 1152535254 shares of the Company on Dec. 31 2024 distribute 1.5
yuan (tax inclusive) for every 10-share to all shareholders with zero share bonus (tax inclusive) and no capital share converted
from capital reserve.XI. Implementation of the Company’s stock incentive plan employee stock ownership plan or
other employee incentives
□ Applicable□Not applicable
During the reporting period the Company has no stock incentive plan employee stock ownership plan or other employee incentives
that have not been implemented.XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the Company Law the Guidelines for Governance of Listed Companies the relevant regulations of the China
Securities Regulatory Commission and other relevant national laws and regulations the company has established the general meeting
of shareholders the board of directors the board of supervisors the party committee and managers. The board of directors consists
of strategy committee remuneration and appraisal committee nominations committee and audit committee clarified the
responsibilities and authorities of decision-making execution and supervision and formed a scientific and effective division of
responsibilities and checks and balances mechanism providing a good internal environment for the establishment and operation of
the company’s internal control system.On the aspect of construction and implementation of the internal control system the board of directors is responsible for the
establishment improvement and effective implementation of the internal control system the board of supervisors supervises the
establishment and implementation of the internal control system of the board of directors and the managers are responsible for
organizing the daily operation of the company’s internal control system and the company’s risk management and internal audit
department is specifically responsible for organizing and coordinating the establishment implementation evaluation and daily work
of the internal control system.The company has established management systems and procedures in line with internal control management norms in the fields of
organizational structure development strategy internal audit and supervision human resources social responsibility corporate
culture capital management procurement business sales business asset management engineering project management research and
development guarantee business investment management contract management budget management financial reports and
information communication which have been effectively implemented in the daily business operation and management process.2. Details of major defects in internal control identified during the reporting period
□Yes □No
XIII. Management and controls on subsidiaries during reporting period
Problems
Name Integration plans Integration encountere
Measures Progress Follow-up
progress d in taken to in solution
integration resolve solution plan
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal control self-appraisal report or internal control audit report
1. Self-appraisal report of internal control
Disclosure date of full internal control
evaluation report April 29 2025Disclosure index of full internal control “Internal control self-appraisal report of Shenzhen Cereals Holdings Co. Ltd. inevaluation report 2024” published on Juchao Website (http: //www.cninfo.com.cn)
The ratio of the total assets of entities
included in the scope of evaluation
accounting for the total assets on the 100.00%
Company’s consolidated financial
statements
The ratio of the operating income of
entities included in the scope of
evaluation accounting for the operating 100.00%
income on the Company’s consolidated
financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Major defects: Defect alone or together 1. Qualitative criteria for major defects
with other defects in a timely manner are as follows:
cause unpreventable or undetectable and (1) The lack of democratic decision-
uncorrectable material misstatement in the making process such as the lack of
financial statements. decision-making on major issues an
The Company may indicate the presence important appointment and dismissal
of significant deficiencies in internal of cadres major investment decisions
control over financial reporting if large sums of money using the
following circumstances: decision-making process;
(1) The directors supervisors and senior (2) Decision-making process is not
management fraud; scientific such as major policy
(2) Enterprise corrects mistake which has mistakes resulting in significant
been published in financial statements; property damage to the Company;
Qualitative criteria (3) CPA finds material misstatement in (3) Serious violations of national lawscurrent financial statements but internal and regulations;
control during operation fails to find the (4) Loss of key executives or loss of a
misstatements; large number of key talents;
(4) Oversight of internal control by (5) Frequent negative news in media
corporate audit committee and the internal which causes nationwide impact.audit is invalid; 2. The qualitative criteria for important
(5) Particularly important or significant defects are as follows:
deficiencies found during internal control (1) The decision-making process is not
has not been rectified; perfect;
(6) The lack of business-critical system or (2) The company’s internal
invalid system. management system has not been
2. Important defect: defect alone or effectively implemented resulting in
together with other defects in a timely losses;
manner cause unpreventable or (3) Frequent occurrence of negativeundetectable and uncorrectable material news in the media with certain
misstatement in the financial statements influence;
although not reach and exceed the level of (4) The general defects in the internal
importance should lead to management control evaluation have not been
attention misstatements. corrected.
3. General Defects: other internal defects 3. General defects refer to other
do not pose a significant or important internal control defects that do not
defect control deficiency. constitute major defects or important
defects.Major defects: Major defects: the amount of direct
Potential misstatement of total assets ≥ 1% property loss ≥ 12 million yuan have
of total assets; been officially disclosed outside the
Potential misstatement of operating Company disclosed in periodic reports
revenue ≥ 1% of operating income; and adversely affected.Potential misstatement of total profit≥ 5% Important defects: 3 million yuan < the
of total profit. amount of direct property loss < 12
Important defects: million yuan punished by the state
0.5% of total assets ≤ Potential government but no negative impact on
misstatement of total assets <1% of total the disclosure of the company’s
assets regular reports;
Quantitative standard 0.5% of operating income≤ Potential General defects: the amount of directmisstatement of operating revenue <1% of property loss ≤ 3 million yuan
operating income punished by the provincial (including
2.5% of total profit≤ Potential provincial) government but no
misstatement of total profit <5% of total negative impact on the disclosure of
profit; the company’s regular reports;
General defects:
Potential misstatement of total assets
<0.5% of total capital;
Potential misstatement of Operating
revenue <0.5% of operating income;
Potential misstatement of total profit
<2.5% of total profit;
Number of significant defects in
financial reports 0
Number of significant defects in non-
financial reports 0
Number of important defects in financial
reports 0
Number of important defects in non-
financial reports 0
2. Internal control audit report
□ Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Grant Thornton Certified Public Accountant LLP (Special General Partnership) believes as of Dec. 31 2024 the company
maintained effective internal control over financial reporting in all significant aspects in accordance with the Basic Standards for
Enterprise Internal Control and relevant regulations
Disclosure details of audit report of
internal control Disclosed
Disclosure date of audit report of
internal control (full-text) 2025-04-29
Index of audit report of internal control The internal control audit report of SHENZHEN CEREALS HOLDINGS CO. LTD.(full-text) in 2024 published on Juchao Website (www.cninfo.com.cn)
Opinion type of auditing report of
internal control Standard unqualified
Whether the non-financial report had
major defects No
Whether the accounting firm issues an internal control audit report with non-standard opinions or not
□ Yes □ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors□ Yes □ No
XV. Rectification of Self-examination Problems in Special Governance Actions in Listed
Company
During the reporting period the company conducted self-examination and self-correction on corporate governance in accordance
with the requirements of the Announcement on Launching Special Actions on Corporate Governance of Listed Companies of the
China Securities Regulatory Commission. Through this self-examination the company has established and improved a relatively
complete and reasonable corporate governance structure and internal control system in accordance with relevant laws and regulations
such as the Company Law Guidelines for Governance of Listed Companies Self-Regulatory Guidelines for Listed Companies No.
1- Standardized Operation of Main Board Listed Companies etc. The company didn’t find any major deficiencies and risks in
standardized operations.In the future the company will focus on improving the high-quality development of the listed company continue to improve the
corporate governance system effectively improve the effectiveness of corporate governance and scientificity of decision-making and
achieve stable operation and sustainable development of the company.Section V. Environmental and Social Responsibilities
I. Major environmental
Are the listed company and its subsidiaries a key pollutant discharge unit announced by the environmental protection authorities
□Yes □ No
Administrative punishment for environmental problems during the reporting period
Company name or Reason for Punishment Impact on the production and The company’s
Violation
subsidiary name punishment result operation of listed company rectification measures
NA NA NA NA NA NA
Other environmental information disclosed by reference to key pollutant discharge entities
Nil
Measures taken to reduce carbon emissions during the reporting period and their effectiveness
□ Applicable□Not applicable
Reasons for not disclosing other environmental information
The company attached great importance to environmental protection work and each subsidiary has built corresponding
environmental protection facilities according to the actual situation of production and operation to treat waste gas dust wastewater
and solid waste generated in the production process so as to make its emissions reach the national and local relevant standards.II. Social responsibility
During the reporting period the Company has been strictly in accordance with Company Law Securities Law Articles of
Association and other relevant laws and regulations continues to improve governance structure and regulate operation. The
Company attaches importance to social responsibility sustains attention to social create value integrity management according to
law provides consumers with safe and secure products high-quality green and healthy products to enhance the capacity for
sustainable development and overall competitiveness; and make efforts to improve management enhance innovation capability and
core competencies; the Company upholds a fair just and open principles of treatment for all investors with particular emphasis on
safeguarding the interests of minority shareholders; the Company strictly complies with national environmental laws and regulations
thoroughly implements green philosophy strengthens ecological protection complies with the overall development of the country
and society and strives to achieve economic and social benefits short-term interests and long-term interests of their own
development and social development coordination thus achieving healthy and harmonious development of the Company staff
society and environment.III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
In 2024 SZCH adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly studying
and implementing the guiding principles of the 20th National Congress of the Communist Party of China as well as the Second and
Third Plenary Sessions of its 20th Central Committee. It earnestly implemented General Secretary Xi Jinping’s important statements
on work related to agriculture rural areas and farmers (the “three rural” issues) and his key instructions on rural revitalization.Focusing on the provincial government’s “High-Quality Development Project for Hundreds of Counties Thousands of Towns andTens of Thousands of Villages” and the municipal government’s rural revitalization assistance initiatives the company activelyfulfilled its social responsibilities. Leveraging its professional strengths in the grain industry it continued to deepen efforts in rural
revitalization contributing to the consolidation and expansion of achievements in poverty alleviation.
1．Fulfilled support responsibilities and united efforts for rural revitalization
The Party Committee of the company attached great importance to rural revitalization integrating it into the key agenda of the
company. The company’s leadership has conducted in-depth visits and field research in paired support villages to stay informed about
the working conditions morale of stationed village officials and the progress of support projects thereby enhancing the quality and
efficiency of rural revitalization efforts. In alignment with the provincial “1310” strategic deployment the company organized Party
member representatives to participate in afforestation activities in Tuocheng. Based on the operational landscape of local peanut oil
processing enterprises promoted the establishment of the “SZCG Edible Oil Branch Support and Co-Development Base.”
Additionally selected one staff member to join the Shenzhen Work Team for Town and Village Assistance and has been stationed in
Chaonan District Shantou to carry out targeted support work.
2．Deepened industrial support and building a diversified assistance system
In terms of standardization efforts SZCH has continued to strengthen its support for the application of “Zhenpin” certification
assisting five enterprises in Longchuan County in completing multiple batches of agricultural product certifications. This initiative
promoted the standardization and branding of the region’s premium agricultural products. Flthe company supported stationed village
officials in establishing a “Feed Processing Cooperative+” alliance supplying 40 tons of feed materials to a farming and breeding
alliance reducing costs by nearly RMB 60000. Dongguan Logistics signed a 100-ton feed material supply contract with a local
cooperative representative to jointly build industrial capacity helping to expand breeding scales and lower production costs.Meanwhile Shenbao Huacheng established three “Shenbao Huacheng Yunnan Black Tea Production Bases” in Yunnan Province. Its
R&D personnel have provided ongoing technical support and guidance in tea-producing mountainous areas such as Yunnan Fujian
and Guizhou helping to enhance the professional skills of tea farmers and effectively addressing employment challenges for local
women. Additionally Doximi launched the “Doximi Assistance Mall” sourcing specialty agricultural products from regions
including Bama in Guangxi and Luochuan in Shaanxi. Covering more than ten categories such as fruits nuts and grains this
initiative has strengthened the agricultural supply chain and boosted farmers’ incomes and benefits.
3．Focused on targeted assistance and cultivated drivers of distinctive development
Focusing on cultural empowerment SZCH’s stationed village officials deeply explored Tuocheng’s local culture and assisted the
work team in designing and creating an original “Tuocheng” cultural IP. A variety of cultural products including themed T-shirts and
gift bags were launched to enhance the brand influence of products from the supported region. In carrying out charitable assistance
the company collaborated with caring enterprises and public welfare foundations to donate desks chairs and recreational supplies to
Shengli Primary School while also completing a safe electricity upgrade project. It also provided long-term educational sponsorships
for two orphaned sisters and offered medical assistance to a veteran couple. Moreover the company actively promoted Tuocheng’s
public welfare job placement program successfully securing job quotas that helped increase the incomes of five disadvantaged
households.
4．Strengthened consumer-based assistance to promote virtuous cycle of income growth and consumption upgrading
The company continued to implement consumer-based assistance initiatives actively mobilizing its subsidiaries and grassroots
labor unions to purchase agricultural and sideline products from formerly impoverished areas. By fully leveraging the positive role of
consumption in supporting rural revitalization SZCH has effectively contributed to income growth for farmers. In 2024 alone it
procured over RMB 6 million of products under the consumer assistance program.Section VI. Important Events
I. Implementation of commitment
1. Commitments completed in Period and those completed till the end of the Period from actual controller
shareholders related parties purchaser and companies
□Applicable □ Not applicable
Commitment Made Type of Commitment Commitment
reason by commitments Content of commitments date term Implementation
Commitment to non-normal
business enterprises: For
non-normal business
enterprises under Shenzhen
Cereals Group (including but
not limited to enterprises that
have been revoked business
licenses discontinued
operation etc.) the
commitment party will fully
assist urge and promote
Shenzhen Cereals Group to
implement the corresponding
write-off procedures. After
Shenzhen the completion of this
Agricultural Other reorganization if Shenzhen
Power commitments Cereals Group or the listed 2018-03-23
Implement Normal
Group company is called to
as promised performance
account receives
administrative punishment or
suffers any losses due to the
abnormal operation of the
non-normal business
Commitments enterprises or the failure to
in assets handle write-off procedures
reorganization in time the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and the target
company within 30 working
days after the actual loss
occurs.Relevant Commitments
Regarding the Existence of
Flaws in Leased Property:
The leased house property of
Shenzhen Cereals Group and
its holding subsidiaries has
Shenzhen the following conditions: (1)
Agricultural Other The lessor has not provided Implement Normal
Power commitments the ownership documentary 2018-03-23 as promised performance
Group evidence of the property
and/or the documentary
evidence proving the lessor
has the right to rent out the
house property. (2) The lease
term of part of the leased
house property is more than20 years; (3) Shenzhen
Cereals Group and its
subsidiaries sublet part of the
leased house property to a
third party without the
consent of the lessor; (4) The
leased house property of
Shenzhen Cereals Group and
its holding subsidiary has not
been registered for the
housing lease. If Shenzhen
Cereals Group and its
holding subsidiaries are
imposed any form of
punishment by the relevant
government departments or
assume any form of legal
responsibility or suffer from
any losses or expenses
because their leased place
and / or house property do
not comply with relevant
laws and regulations the
commitment party will be
willing to bear any losses
damages claims costs and
expenses incurred suffered
and assumed by Shenzhen
Cereals Group and its
holding subsidiaries and
protect Shenzhen Cereals
Group and its holding
subsidiaries from damages.In addition the commitment
party will support Shenzhen
Cereals Group and its
holding subsidiaries to
actively advocate their rights
against the corresponding
parties in order to safeguard
and protect the interest of
Shenzhen Cereals Group and
the listed companies to the
maximum extent.Commitment Letter on
Flaws in House Property and
Land: In the case that some
of the house properties held
by Shenzhen Cereals Group
fail to rename the obligee of
the property ownership
certificate the commitment
party will fully assist urge
Shenzhen and promote Shenzhen
Agricultural Other Cereals Group or its
Power commitments subsidiaries to go through 2018-03-23
Implement Normal
the formalities. After the as promised performanceGroup completion of this
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses due to the
failure to rename the obligee
of the property ownership
certificate the commitmentparty will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that some house
properties held by Shenzhen
Cereals Group fail to
complete the registration
procedures for ownership
transfer the commitment
party will fully assist urge
and promote Shenzhen
Cereals Group to complete
the relevant transfer
procedures. After the
completion of this
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses due to the
failure to rename the obligee
of above-mentioned
property the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In response to
the conversion of non-
market commercial housing
held by Shenzhen Cereals
Group into market
commercial housing the
commitment party will fully
assist urge and promote
Shenzhen Cereals Group to
go through the formalities.After the completion of this
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses due to the
failure to complete the
conversion of non-market
commercial housing into
market commercial housing
the commitment party will
bear the relevant legal
liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that some house
properties of Shenzhen
Cereals Group have not been
renewed for the land useperiod the commitment
party will fully assist urge
and promote Shenzhen
Cereals Group to renew the
corresponding land use right
period. After the completion
of this reorganization if
Shenzhen Cereals Group or
the listed company is called
to account receives
administrative punishment or
suffers any losses due to the
failure to renew the land use
right period the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that some house
properties of Shenzhen
Cereals Group have not been
registered for ownership
transfer or renewed the land
use period the commitment
party will fully assist urge
and promote Shenzhen
Cereals Group to handle the
corresponding land use
rights renewal and
ownership transfer
registration procedures.After the completion of the
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses due to the
failure to complete the
above-mentioned land use
right renewal and ownership
transfer registration
procedures the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that the property of
SZCG Sungang Warehouse
has not completed the
registration for converting
noncommercial housing into
commercial housing after
the completion of the
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses as the
property of SungangWarehouse is not registered
for converting
noncommercial housing into
commercial housing in time
the commitment party will
bear the relevant legal
liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that the land and
property of SZCG Shuguang
Grain Depot have not passed
the completion acceptance
nor completed the
registration of commercial
housing after the completion
of the reorganization if
Shenzhen Cereals Group or
the listed company is called
to account receives
administrative punishment or
suffers any losses as the land
and property of Shuguang
Grain Depot have not timely
passed the completion in
time nor completed the
registration of commercial
housing the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that the property of
SZCG Flour Factory has not
completed the conversion of
non-commercial housing into
commercial housing and the
relocation after the
completion of the
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers from any losses as
Flour Factory doesn’t
complete the conversion of
non-commercial housing into
commercial housing and the
relocation the commitment
party will bear the relevant
legal liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. In view of the
fact that the land of
Heilongjiang Hongxinglong
Nongken Shenxin Grain
Industry Park Co. Ltd. asubsidiary of Shenzhen
Cereals Group has not
applied for land use right
certificates the commitment
party will fully assist urge
and promote the subsidiary
of Shenzhen Cereals Group
to manage the application
procedures of the
corresponding land use right
certificates. After the
completion of the
reorganization if Shenzhen
Cereals Group or the listed
company is called to
account receives
administrative punishment or
suffers any losses because
the land use right certificate
cannot be issued due to any
ownership disputes in the
above-mentioned land use
right the commitment party
will bear the relevant legal
liability and fully
compensate the listed
company and Shenzhen
Cereals Group within 30
working days after the actual
loss occurs. If Shenzhen
Cereals Group and its
holding subsidiaries are
required to take back the
sites and/or properties or
imposed any form of
punishment by the relevant
government departments or
assume any legal liability or
suffer any losses or expenses
arising from the modification
for flaws in sites and/or
properties as the above-
mentioned and other self-
owned or leased sites and/or
properties fail to comply
with the relevant laws and
regulations the commitment
party will assume any losses
damages claims costs and
expenses incurred suffered
and assumed by Shenzhen
Cereals Group and its
holding subsidiaries and
protect the list companies
and Shenzhen Cereals Group
from damages. In addition
the commitment party will
support the company and its
holding subsidiaries to
actively advocate their rights
against the corresponding
parties in order to safeguard
and protect the interest of the
company and its holding
subsidiaries to the maximum
extent.Shenzhen Other Commitment Letter on the 2018-03-23 Implement NormalAgricultural commitments Company’s System Reform as promised performance
Power and System Evaluation of
Group Shenzhen Cereals Group in
1998: After the completion
of this restructuring if
Shenzhen Cereals Group or
the listed company is called
to account receives
administrative punishment or
suffers any losses as the
system reform is not
evaluated or other reasons
related to this reform the
commitment party will bear
the relevant legal liability
and fully compensate the
listed company and
Shenzhen Cereals Group
within 30 working days after
the actual loss occurs.Commitment on the public
shares: After the completion
of the transaction the
commitment party will
cautiously nominate
directors and supervisors
and will not nominate
candidates for directors
supervisors and senior
management to the listed
company that will cause the
proportion of public shares
Shenzhen of the listed company not
Agricultural Other meet the requirements of the Implement Normal
Power commitments Listing Rules of Shenzhen 2018-03-23 as promised performance
Group Stock Exchange.; nor will
vote for the relevant
shareholders’ meeting and/or
board resolutions for
selecting directors
supervisors and senior
executives of listed
companies that will make the
proportion of public shares
of listed companies not meet
the requirements of the
Listing Rules of Shenzhen
Stock Exchange.Commitment letter of
Shenzhen Food Materials
Group Co. Ltd on pending
litigation of Shenzhen
Cereals Group Co. Ltd.:
Shenzhen Shenbao Industrial
Co. Ltd. (hereinafter
Shenzhen referred to as
Agricultural Other “Shenshenbao” “ListedPower commitments Company”) intends to 2018-04-02
Implement Normal
purchase the 100% equity of as promised performanceGroup Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”
“target company”) held by
the shareholders of SZCG
through issuance of shares.In view of the two
unfinished majorlawsuits/arbitration of
SZCG Shenzhen Food
Materials Group Co. Ltd
(hereinafter referred to as
“the commitment party”) the
controlling shareholder of
SZCG has made the
following commitments: If
SZCG and its controlling
subsidiaries suffer any
claims compensation losses
or expenses due to the
unsettled major
lawsuits/arbitration about the
contract dispute of
international sale of soybean
with Noble Resources Co.Ltd. and the contract dispute
with Guangzhou Jinhe Feed
Co. Ltd. and Huangxianning
Import Agent the
commitment party will
assume the compensation or
loss caused by the above two
outstanding major
lawsuits/arbitration.Commitment letter of
Shenzhen Food Materials
Group Co. Ltd. on risks of
making a supplementary
payment for the rent at
earlier stage of Pinghu Grain
Depot: Shenzhen Shenbao
Industrial Co. Ltd. intends
to purchase the 100% equity
of Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”) held
by the shareholders of SZCG
through issuance of shares.Shenzhen Shenzhen Food Materials
Agricultural Other Group Co. Ltd. (hereinafter Implement NormalPower commitments referred to as “the 2018-04-02 as promised performanceGroup commitment party”) the
controlling shareholder of
SZCG has made the
following commitments: If
SZCG needs to make a
supplementary payment for
the rent before assessment
basis date to the property
right unit of Pinghu Grain
Depot (or its authorized
unit) the total amount of the
rent and other related
charges and expenses shall
be borne by the commitment
party.Commitment letter on the
house properties of
Shenzhen Shenzhen Cereals Group and
Agricultural Other its subsidiaries that have not
Power commitments obtained the housing 2018-04-02
Implement Normal
ownership certificate: as promised performanceGroup Shenzhen Shenbao Industrial
Co. Ltd. (hereinafter
referred to as “Shenshenbao”and “listed company”)
intends to purchase the 100%
equity of Shenzhen Cereals
Group Co. Ltd. (hereinafter
referred to as “SZCG”
“target company”) held by
the shareholders of SZCG
through issuance of shares.Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “thecommitment party”) the
controlling shareholder of
SZCG has made the
following commitments: If
SZCG and its subsidiaries
suffer any administrative
punishment or losses due to
their house properties
without the housing
ownership certificate the
commitment party will bear
the relevant legal
responsibilities and fully
compensate the listed
company and SZCG within
30 working days after the
actual loss occurs.Commitment on Shenzhen
Food Materials Group Co.Ltd to accept the restricted
shares of non-tradable shares
reform of Shenzhen Shenbao
Industrial Co. Ltd. held by
Shenzhen Investment
Holdings Co. Ltd.:
Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “FoodMaterials Group”) accepts
79484302 shares of A
shares of Shenshenbao A
(000019) (including
66052518 shares of
unrestricted A shares and
Shenzhen 13431784 shares of
Agricultural Commitment restricted A shares ) held by
Power on restricted Shenzhen Investment 2018-04-04
Implement Normal
Group sale of shares Holdings Co. Ltd.as promised performance
(hereinafter referred to as“Shenzhen InvestmentHoldings”) by the free
transfer totally accounting
for 16% of the total share
capital of Shenshenbao.Shenzhen Investment
Holdings made the following
commitments in the reform
of non-tradable shares ofShenshenbao in 2006: “Tomake effective and long-
term incentives for the
management after the
completion of the share
reform Shenzhen
Agricultural Products Co.Ltd. (hereinafter referred toas “Agricultural Products”)
and Shenzhen Investment
Holdings the company’s
non-tradable shareholders
will sell their shareholdings
after consideration which
account for 6%-8% of the
company’s total share capital
to the management of the
company in three years
based on the shareholding
ratio of Agricultural
Products and Shenzhen
Investment Holdings after
the share reform (i.e.accounting for 6%-8% of the
company’s total share capital
of 181923088 shares afterthe share reform).” Food
Materials Group made a
commitment that after the
completion of the free
transfer of the state-owned
shares Food Materials
Group would continue to
perform the above
commitments it made when
Shenzhen Investment
Holdings makes the non-
tradable shares reform to
Shenshenbao which is
effective in the long run.Commitment Letter on
Avoiding Horizontal
Competition: In view of the
fact that Shenzhen Shenbao
Industrial Co. Ltd.(hereinafter referred to as
“Listed Company”) intends
to acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. held by Shenzhen
Food Materials Group Co.Ltd(hereinafter referred to as
“the Company”) by issuing
Commitments shares to purchase assets the
on inter- Company has made the
Shenzhen industry following commitments: 1.Agricultural competition As of the issue date of thisCommitment Letter the 2018-06-08 Implement NormalPower related
Group transactions Company and other
as promised performance
and capital enterprises controlled by the
occupancy Company have not engagedin any business or activity
that directly or indirectly
constitute horizontal
competition to the Listed
Company and its subsidiaries
in the business and
guarantees that it will not
engage or induce any
enterprise controlled by the
Company to engage in any
business or activity that
directly or indirectly
constitute horizontal
competition to the ListedCompany and its subsidiaries
in the future. 2. If the
business opportunity
obtained by the Company
and other enterprises
controlled by the Company
constitutes horizontal
competition or may
constitute horizontal
competition to the main
business of the Listed
Company and its
subsidiaries the Company
will immediately notify the
Listed Company and try its
best to give the business
opportunity to the Listed
Company to avoid horizontal
competition or potential
horizontal competition with
the Listed Company and its
subsidiaries and ensure the
interests of Listed Company
and other shareholders of
Listed Company are not
impaired. 3. If the main
business of the Listed
Company and its subsidiaries
constitutes horizontal
competition or may
constitute horizontal
competition to the Company
and other enterprises
controlled by the Company
due to business development
or extension the Company
and other enterprises
controlled by the Company
shall take the following
feasible measures based on
specific circumstance to
avoid competition with the
Listed Company: (1) Stop
business that constitutes
competition or may
constitute competition to the
Listed Company; (2)Transfer
the competitive businesses
and assets to the Listed
Company at fair prices; (3)
Transfer the competitive
business to an unrelated third
party; (4) Other ways to
protect the interests of the
Listed Company; 4. If the
Company violates the above
commitments and causes
losses to the Listed
Company the Company will
compensate the Listed
Company for the incurred
losses after the losses are
determined. 5. The above
commitments continue to be
valid during the period when
the Company is the
controlling shareholder ofthe Listed Company.Commitment Letter on
Reducing and Regulating
Related Transactions: In
view of the fact that
Shenzhen Shenbao Industrial
Co. Ltd. (hereinafterreferred to as “ListedCompany”) intends to
acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. held by Shenzhen
Food Materials Group Co.Ltd(hereinafter referred to as
“the Company”) by issuing
shares to purchase assets the
Company has made the
following commitments: 1.The enterprises directly or
indirectly controlled or
affected by the Company and
the restructured company
and its holding companies
will regulate and minimize
the related transactions. For
related transactions that
cannot be avoided or have
reasonable reasons to occur
the Company promises to
follow the market-oriented
Commitments principle of justice fairness
on inter- and openness and sign
Shenzhen industry agreements in accordance
Agricultural competition with relevant laws and Implement Normal
Power related regulations regulatory 2018-06-08 as promised performance
Group transactions documents and articles of
and capital association perform legal
occupancy procedures fulfill
information disclosure
obligations and handle
relevant approval procedures
in accordance with the law
and ensure not to damage the
legitimate rights and
interests of the company and
other shareholders through
related transactions. 2. The
enterprises directly or
indirectly controlled or
affected by the Company
will strictly avoid borrowing
from the company and its
holding and shareholding
companies occupying the
funds of the company and its
holding and shareholding
companies or embezzling
the company’s funds by
taking advance payments
and compensatory debts
from the company and its
holding and shareholding
companies. 3. After the
completion of this
transaction the Company
will continue to exercise its
shareholder rights in strictaccordance with the relevant
laws and regulations
regulatory documents and
the relevant provisions of the
Articles of Association; and
fulfill its obligation of
avoiding voting when the
company’s general meeting
of shareholders is voting on
related transactions
involving the Company. 4.The Company guarantees not
to obtain any improper
interests through the related
transactions or cause the
company and its holding and
shareholding companies to
bear any wrongful
obligations. If the company
or its holding and
shareholding companies
suffer loses or the interests
of the company or its
holding and shareholding
companies are embezzled by
related transactions the
Company will the losses of
the company and its holding
and shareholding companies.Commitment on the
Standardized Operation of
Listed Company: Shenzhen
Shenbao Industrial Co. Ltd.intends to purchase 100%
equity of Shenzhen Cereals
Group Co. Ltd. (hereinafter
referred to as “SZCG”) held
by Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance
of shares. In response to the
above transactions the
Company has made the
following commitments:
After the completion of this
Shenzhen transaction the commitment
Agricultural Other party promises to ensure that Implement Normal
Power commitments the listed company will 2018-06-08 as promised performance
Group strictly follow the
requirements of laws and
regulations such as the“Guidelines for theGovernance of ListedCompanies” and the changes
in internal management and
external operation and
development of listed
company to revise the
Articles of Association and
related rules of procedure so
as to adapt to the business
operations and corporate
governance requirements
after the reorganization
continue to improve the
governance structure oflisted company continuously
strengthen the system
construction to form a
corporate governance
structure that each performs
their own duties effectively
checks and balances makes
scientific decisions and
coordinates the operation so
as to more effectively and
feasibly protect the interests
of the listed company and all
its shareholders. The
commitment party will urge
the listed company to
perform the functions of the
shareholders’ meeting in
strict accordance with the
Articles of Association and
the Rules of Procedures of
the Shareholders Meeting
ensure that all shareholders
especially small and medium
shareholders enjoy equal
rights as stipulated by laws
administrative regulations
and the Articles of
Association and ensure that
all shareholders legally
exercise their rights and
interests. The commitment
party will also urge the listed
company to further improve
the institutional requirements
of the board of directors
ensure that the board of
directors fairly scientifically
and efficiently makes
decisions ensure that
independent directors can
perform their duties in
accordance with laws and
regulations during their
employment actively
understand the various
operations of the listed
company consciously
perform responsibilities play
a positive role in the
scientific decision-making of
the board of directors and the
development of the listed
company promote the sound
development of the listed
company and effectively
safeguard the overall
interests of the listed
company and the interests of
small and medium-sized
shareholders. In addition the
Company will urge the listed
company to give full play to
the positive role of
independent directors in
regulating the operation of
the company strictly abide
by relevant national lawsregulations rules and
relevant provisions of the
Articles of Association to
select independent directors
and further enhance
corporate governance.Commitment Letter on the
Legal Compliance of the
Underlying Asset Operation:
Shenzhen Shenbao Industrial
Co. Ltd. (hereinafter
referred to as
“Shenshenbao” “ListedCompany”) intends to
purchase 100% equity of
Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”
“Target Company”) held by
Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance
of shares. The Company has
made the following
commitments: 1. The Target
Company is a limited
liability company established
according to law and is
validly existing possesses
statutory business
qualifications and the Target
Company has obtained all
the approvals consents
Shenzhen authorizations and licenses
Agricultural Other required for its establishment
Power commitments and operation and all 2018-06-08
Implement Normal
Group approvals consents and
as promised performance
authorizations and licenses
are valid and there is no
reason or case that may
result in the invalidation of
the above approvals
consents authorizations and
licenses. 2. The Target
Company has no major
violations of laws and
regulations in the production
and operation in the last
three years there is no case
that the Target Company
should be terminated
according to relevant laws
regulations normative
documents and the
company’s articles of
association. Except for
litigations arbitrations and
administrative penalties
disclosed in the
Restructuring Report the
Target Company does not
have any unsettled or
foreseeable major litigation
arbitration and
administrative penalty that
adversely affect itsoperations or the amount is
more than 10 million yuan.
3. The Target Company will
perform the labor contracts
with its employees
independently and
completely. 4. If the Target
Company is subject to the
fees or penalties of the
relevant competent
authorities in terms of
industry and commerce
taxation employee salaries
social security housing
provident fund business
qualifications or industry
supervisors due to the facts
already existing before the
reorganization the Company
will fully compensate all the
outstanding fees of the
Target Company and bear all
the losses suffered by
Shenshenbao and the Target
Company. 5. The Target
Company legally owns the
ownership and/or use rights
of the offices office
equipment trademarks and
other assets required for
normal production and
operation has independent
and complete assets and
business structure and has
legal ownership of its main
assets and the ownership of
assets is clear. 6. There is no
case that the Target
Company impedes the
transfer of ownership of the
company such as litigation
arbitration judicial
enforcement etc. and there
is no external guarantee that
violates the law or the
articles of association. After
this reorganization if the
Company violates the above
commitments and causes
losses to Shenshenbao and
the Target Company the
Company agrees to bear the
aforementioned
compensation/ liability for
damage to Shenshenbao/
Target Company.Commitment on the
Independence of Listed
Company: In view of the fact
Shenzhen that Shenzhen Shenbao
Agricultural Other Industrial Co. Ltd.Power commitments (hereinafter referred to as 2018-06-08
Implement Normal
“Shenshenbao”) intends to as promised performanceGroup acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “TargetCompany”) held by
Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “theCompany”) by issuing shares
to purchase assets the
Company has made the
following commitments: 1.Guarantee the independence
of the personnel of
Shenshenbao and the Target
Company (1) Guarantee that
the labor personnel and
compensation management
of Shenshenbao and Target
Company are completely
independent of the Company
and other companies and
enterprises controlled by the
Company or other economic
organizations and related
parties after the completion
of this restructuring. (2)
Guarantee that the senior
management personnel of
Shenshenbao and Target
Company are fully employed
in Shenshenbao and Target
Company and receive
remuneration after the
completion of this
restructuring and do not
hold any post except for
directors and supervisors in
the Company and other
companies enterprises
controlled by the Company
or other economic
organizations and related
parties. (3) Ensure not to
intervene into the
shareholders’ meeting and
the board of directors of
Shenshenbao and Target
Company to exercise their
powers to determine the
appointment and dismissal of
personnel after the
completion of this
restructuring. 2. Guarantee
the institutional
independence of
Shenshenbao and Target
Company (1) After the
completion of this
restructuring Shenshenbao
and Target Company will
establish a sound corporate
governance structure and
have an independent and
complete organization. (2)
After the completion of this
restructuring the
shareholders meeting the
board of directors and the
board of supervisors of
Shenshenbao and TargetCompany shall
independently exercise their
functions and powers in
accordance with the laws
regulations and the articles
of association of
Shenshenbao and Target
Company. 3. Ensure that the
assets of Shenshenbao and
Target Company are
independent and complete.
(1) After the completion of
this restructuring
Shenshenbao and Target
Company shall have
independent and complete
assets related to production
and operation. (2) Ensure
that the site for business
operation of Shenshenbao
and Target Company are
independent of the Company
and other companies and
enterprises controlled by the
Company or other economic
organizations and related
parties after the completion
of this restructuring. (3) In
addition to normal business
transactions after the
completion of this
restructuring Shenshenbao
and Target Company do not
have funds and assets which
are occupied by the
Company and other
companies and enterprises
controlled by the Company
or other economic
organizations and related
parties. 4. Guarantee the
business independence of
Shenshenbao and Target
Company (1) After the
completion of this
restructuring Shenshenbao
and Target Company shall
have the relevant
qualifications for
independent business
activities and have the
market-oriented independent
autonomous and sustainable
operation capabilities. (2)
After the completion of this
restructuring the Company
and other companies and
enterprises controlled by the
Company or other economic
organizations and related
parties shall reduce the
related transactions with
Shenshenbao and Target
Company and other
companies and enterprises
controlled by them or other
economic organizations; forthe necessary and
unavoidable related
transactions guarantee the
fair operation according to
market principles and fair
prices and perform relevant
approval procedures and
information disclosure
obligations in accordance
with relevant laws
regulations and regulatory
documents. 5. Guarantee the
financial independence of
Shenshenbao and Target
Company (1) Ensure that
Shenshenbao and Target
Company will establish an
independent financial
department and an
independent financial
accounting system and a
standardized and
independent financial
accounting system after the
completion of this
restructuring. (2) Ensure that
Shenshenbao and Target
Company will open an
independent bank account
after the completion of this
restructuring and will not
share bank accounts with the
Company and other
companies and enterprises
controlled by the Company
or other economic
organizations and other
related parties. (3) After the
completion of this
restructuring the financial
personnel of Shenshenbao
and Target Company shall
not take part-time jobs in the
Company and other
companies and enterprises
controlled by the Company
or other economic
organizations and related
parties. (4) After the
completion of this
restructuring Shenshenbao
and Target Company shall be
able to make financial
decisions independently the
Company shall not interfere
with the use of funds of
Shenshenbao and Target
Company. (5) After the
completion of this
restructuring Shenshenbao
and Target Company shall
pay taxes independently
according to law. If the
Company violates the above
commitments it will bear all
the losses caused to
Shenshenbao and TargetCompany.Commitment to Avoid
Occupation of Non-operating
Capital: Shenzhen Shenbao
Industrial Co. Ltd. intends
to acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”) held
by Shenzhen Food Materials
Group Co. Ltd (hereinafterreferred to as “theCompany”) through issuance
of shares. In response to the
above transactions Food
Materials Group and
Agricultural Products have
made the following
commitments: 1. As of the
issue date of this
commitment letter the
commitment party and its
related person do not have
any illegal use of funds and
assets of the listed company
Commitments and SZCG and there is no
Shenzhen on inter- case that the listed company
Agricultural industry and SZCG provide illegal
Power competition guarantee for the Implement Normal
Group related commitment party and its 2018-06-08 as promised performance
Agricultural transactions related person. 2. After the
Products and capital completion of the
occupancy transaction the commitment
party guarantees that the
commitment party and its
related person shall not
illegally occupy the funds
and assets of the listed
company in any way nor
require the listed company to
provide illegal guarantee for
the commitment party and its
related person under any
circumstances nor engage in
any act to damage the
legitimate rights and
interests of the listed
company and other
shareholders. If the
commitment party violates
the above commitments it
will bear all losses caused to
the listed company and the
target company and other
companies and enterprises
controlled by them or other
economic organizations.Completed on
time (Y/N) Y
2. For assets or projects of the Company which keep profitable forecast during the reporting period
description reasons for reaching the original profitable forecast
□ Applicable□Not applicableII. Non-operational fund occupation by controlling shareholders and their related parties
□ Applicable□ Not applicable
No non-operational fund occupation by controlling shareholders and their related parties in period.III. External guarantee out of regulations
□ Applicable □ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable□Not applicable
V. Explanation from the BOD the board of supervisors and independent directors (if
applicable) for “Qualified Audit Opinion” issued by CPA
□ Applicable□Not applicable
VI. Explanation on changes in accounting policies accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
□Applicable □ Not applicable
There were no changes in accounting policies accounting estimates or correction of significant accounting errors compared with the
financial report of the previous year.VII. Explanation of changes in the scope of the consolidated financial statements compared to
the previous year’s financial reports
□Applicable □ Not applicable
In this period the company transferred Wuhan Jiacheng Biological Products Co. Ltd. and Zhenpin Market Operation Technology
Co. Ltd. and deregistered Hangzhou Ju Fang Yong Holdings Co. Ltd. Yunnan Pu’er Tea Trading Center Co. Ltd. and Shenzhen
Shenbao Industry and Trade Co. Ltd.VIII. Appointment and dismissal of CPA
Accounting firm appointed
Name of domestic accounting firm Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership)
Remuneration for domestic accounting firm (in 10 thousand
Yuan) 70
Continuous life of auditing service for domestic accounting firm 2
Name of domestic CPA Gao Hong Shu Zhicheng
Continuous life of auditing service for domestic CPA 21
Whether re-appointed accounting firms in this period or not
□ Yes □ NoAppointment of internal control auditing accounting firm financial consultant or sponsor
□Applicable □ Not applicable
During the reporting period the company hired Grant Thornton Certified Public Accountant LLP (Special General Partnership) to
perform internal audit and paid a total of RMB 200000.00 in internal control audit fees.IX. Particular about delisting after annual report disclosed
□ Applicable□Not applicable
X. Bankruptcy reorganization
□ Applicable□Not applicable
No bankruptcy reorganization for the Company in reporting period
XI. Significant lawsuits and arbitration of the Company
□Applicable □ Not applicable
Amount
Lawsuits involved Resulting in an Execution
(arbitration) (in 10 accrual liability Progress
Result and of Disclosure Disclosure
thousand (Y/N) influence judgment date index
yuan)
The Company
As of 31 actively makes
December use of the
2024 other advantageous
lawsuits that resources of
did not meet internal legal
the disclosure affairs and After
standards for external laws comprehensive
significant firm to follow up analysis the
lawsuits and deal with the result of the It is
mainly 7628.8 N lawsuit-related cases involved
included cases. At in the lawsuits
actively --
will not have a advancingdisputes over present the
sales contracts Company is significant
loan contracts responding to impact on the
construction and dealing with Company
contracts legal the cases
service effectively in
contracts lease accordance with
contracts etc. relevant laws
and regulations
XII. Penalty and rectification
□ Applicable□Not applicable
No penalty and rectification for the Company in reporting period.XIII. Integrity of the Company its controlling shareholder and actual controller
□ Applicable□Not applicableXIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable□ Not applicable
The company had no related transaction with routine operation concerned at the end of the reporting period.
2. Assets or equity acquisition and sales of assets and equity
? Applicable□ Not applicable
Pricing Book Assesse Settlem
Type of Content principl value d value Trans entof Trading
Related Related related related es for
of of fer method
transfer transfer price of gains/lo Disclos Disclos
parties relations party party related red red (1000 related sses ure urehips transacti
on transact
party (10000 date index
ion transacti
assets assets 0 party
ons (10000 (10000 yuan) transact
yuan)
yuan) yuan) ion
Shenlian
g
Intellige
nt
Wulian
Equity
Investm Joint Acquisit Minorit
ent Fund venture ion of yequity Market 2876.5 2885.6 2885. Bank(Shenzh of the minority price 2 0 60 transfer 0
en) company equity acquisit
Partners ion
hip
Enterpri
se
(Limited
)
The
subsidiar
y of the
actual
Shenzhe controlle Transact
n r of the ion
Zhenpin company related Equity Market 397.7 Bank
Group also with transfer price
247.05 451.71 3 transfer 150.68
Co. Ltd controlle equity
d by the transfer
ultimate
controlle
r
Shenzhe Transact
n Holding ion
Agricult company related Equitywith acquisit 434.42 389.97 415.2 Bankural of the 5 transfer 0
Power company equity ion
Group acquisition
Reasons for significant differences between
transfer price and book value or assessed Appreciation of assessment
value (if any)
The impact on the company's operating No significant impactresults and financial condition
If the relevant transactions involve
performance agreements the achievement NA
of performance during the reporting period
3. Related transaction of joint foreign investment
□ Applicable□Not applicable
No related transaction of joint foreign investment occurred in the period
4. Related credits and liabilities
□ Applicable□ Not applicable
No related credits and liabilities occurred in period
5. Contact with the related finance companies
□ Applicable□Not applicable
There are no deposits loans credits or other financial businesses 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 major related transaction
□ Applicable□Not applicable
No other major related transaction in the Period.XV. Significant contract and implementation
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable□Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable□Not applicable
No contract for the Company in reporting period(3) Leasing
□ Applicable□Not applicable
No leasing in the Period
2. Major Guarantee
□Applicable ? Not applicable
3. Entrusted cash asset management
(1) Entrusted financing
□ Applicable □Not applicable
Entrusted financing in the period
Unit: 10 thousand yuan
Impairment
provision accrual
Type Fund sources Amount occurred Undue balance Overdue amount for overdue
financial
management
Bank financial
products Owned fund 34500 0 0 0
Total 34500 0 0 0
Details of high-risk trust financing with significant individual amounts low safety or liquidity
□ Applicable□Not applicable
Expected inability to recover the principal of trust financing or other situations that may lead to impairment in trusting financing
□ Applicable□Not applicable
(2) Entrusted loans
□ Applicable□Not applicable
No entrusted loans in the Period
4. Other material contracts
□ Applicable□ Not applicable
No other material contracts in the period.XVI. Explanation on other significant events
□Applicable □ Not applicable
1. Personnel changes in BOD BOS and senior executives
(1) On November 27 2024 the board of directors of the company received a written resignation application submitted by Mr. Hu
Xianghai Deputy Secretary of the Party Committee Director and GM of the company. Due to reaching the legal retirement age Mr.Hu Xianghai applied to resign from the positions of director and GM of the company and will no longer hold any other positions in
the company after resignation. For details please refer to the Announcement of the Company on the Retirement and Departure of
Directors and GM published on Juchao website (www.cninfo.com.cn) on November 28 2024.XVII. Significant event of subsidiaries of the Company
?Applicable □Not applicable
1. On August 23 2024 the Company convened the 9th meeting of the 11th session of the Board of Directors deliberated and
approved the Proposal on the Acquisition of 49% Minority Shareholders’ Equity of Shuangyashan Shenliang Cereals Base Co.Ltd.by Shenzhen Hualian Grain and Oil Trading Co. Ltd. The Company agreed that its wholly-owned subsidiary Shenzhen Hualian
Grain and Oil Trading Co. Ltd. to acquire 49% equity of Shuangyashan Shenliang Cereals Base Co. Ltd. held by Shenliang
Intelligent Wulian Equity Investment Fund (Shenzhen) Partnership Enterprise (Limited) at the consideration of 28856000.00 yuan.For details please refer to the Announcement on the Resolution of the 9th Meeting of the 11th session of the Board of Directors of the
Company published on Juchao Website (www.cninfo.com.cn) on August 27 2024.
2. On December 30 2024 the Company convened the 12th Meeting of the 11th session of the Board of Directors deliberated and
approved the Proposal on the Capital Increase Project of Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd. by SZCG
and the Proposal on the Capital Increase Project of Shenzhen Hualian Grain and Oil Trading Co. Ltd. by SZCG The Company
agreed that its first-level wholly-owned subsidiary SZCG would use its own funds to respectively increase the capital of the second-level wholly-owned subsidiary Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd(hereinafter referred to as “BigKitchen”）by 10000000.00 yuan and the second-level wholly-owned subsidiary Shenzhen Hualian Grain and Oil Trading Co.Ltd. (hereinafter referred to as “Hualian Company”) by 200000000.00 yuan. After the completion of this capital increase the
registered capital of Big Kitchen will be increased from 10000000.00 yuan to 20000000.00 yuan and the registered capital of
Hualian Company will be increased from 100000000.00 yuan to 300000000.00 yuan. For details please refer to the
Announcement on the Resolution of the 12th Meeting of the 11th session of the Board of Directors of the Company and the
Announcement on Capital Increase of Wholly-Owned Subsidiaries by the Company published on the Juchao website
(www.cninfo.com.cn) on December 31 2024.Section VII. Changes in Shares and Particulars about
Shareholders
I. Changes in shares
1. Changes in shares
Unit: Share
Before the Change Increase/Decrease in the Change (+/ -) After the Change
New Capitalization
Amount Proportion shares Bonusshares of public Others Subtotal Amount Proportionissued reserve
I. Restricted
shares 684569567 59.40% 0 0 0 0 0 684569567 59.40%
1. State-owned
shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned
corporate 684569567 59.40% 0 0 0 0 0 684569567 59.40%
shares
3. Other
domestic 0 0.00% 0 0 0 0 0 0 0.00%
shares
Including:
Domestic
legal person’s 0 0.00% 0 0 0 0 0 0 0.00%
shares
Domestic
nature
person’s 0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Foreign
shares 0 0.00% 0 0 0 0 0 0 0.00%
Including:
Foreign
corporate 0 0.00% 0 0 0 0 0 0 0.00%
shares
Overseas
nature 0 0.00% 0 0 0 0 0 0 0.00%
person’s share
II.Unrestricted 467965687 40.60% 0 0 0 0 0 467965687 40.60%
shares
1. RMB
common 416216407 36.11% 0 0 0 0 0 416216407 36.11%
shares
2. Domestic
listed foreign 51749280 4.49% 0 0 0 0 0 51749280 4.49%
shares
3. Foreign
listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total
shares 1152535254 100.00% 0 0 0 0 0 1152535254 100.00%
Reasons for changes in share□ Applicable□ Not applicable
Approval of changes in share
□ Applicable□ Not applicable
Ownership transfer of changes in share
□ Applicable□ Not applicable
Influence of changes in share on basic EPS diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of the Company in latest year and period
□ Applicable□ Not applicable
Other information necessary to be disclosed in the viewpoint of the Company or that required to be disclosed by securities regulators
□ Applicable□ Not applicable
2. Changes in restricted shares
□ Applicable□Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in the reporting period
□ Applicable□Not applicable
2. Explanation on changes in total shares shareholders structure as well as assets and liability structure of
the company
□ Applicable□Not applicable
3. Existing internal staff shares
□ Applicable□Not applicable
III. Particulars about shareholders and actual controller of the Company
1. Number of shareholders and particulars about shares holding
Unit: Share
Total common Total Total preferred Total
stock common shareholders with preferred
shareholders at stock voting rights shareholders
the end of shareholders recovered at the end with voting
reporting at the end of of reporting period rights
period last month (if applicable) (refer recovered at
42977 before 41498 to Note 8) 0 end of lastannual month 0
report before
disclosed annual
report
disclosed (if
applicable)
(refer toNote 8)
Shareholding of shareholders holding more than 5% shares of the company or top ten shareholders
(Excluding shares lent through refinancing)
Total shares Information of shares
Name of Nature of Proportion held at the Changes in Quantity of Quantity of pledged tagged or
Shareholders shareholder of shares end of reporting restricted unrestricted frozenheld reporting period shares held shares held State of
period share Quantity
Shenzhen State-
Agricultural owned
Power Group legal 63.79% 735237253 0 669184735 66052518 NA 0
Co. Ltd. person
Shenzhen State-
Agricultural owned
Products legal 8.23% 94832294 0 15384832 79447462 NA 0
Group Co. Ltd person
Dongguan Domestic
Fruit non-state-
Vegetable and owned
Non- staple legal 0.75% 8698216 0 0 0 NA 0
Food Trading person
Market Co.Ltd
Hong Kong Foreign
Securities legal
Clearing person 0.48% 5492845 39652 0 0 NA 0
Company
Chen Jiuyang Domestic
nature 0.29% 3297070 386000 0 0 NA
person
Zhong Zhenxin Domestic
nature 0.29% 3295500 0 0 0 NA
person
Sun Huiming Domestic
nature 0.28% 3236352 -370300 0 0 NA 0
person
CMB -
Southern CSI
1000 Trading
Open-End
Index Other 0.24% 2726700 2257200 0 0 NA 0
Securities
Investment
Fund
Bank of China
Fund - Postal
Savings Bank
of China -
Bank of China
Fund -
Zhongchengxin
Dividend Other 0.14% 1579400 1579400 0 0 NA 0
Defense Stock
Index
Collective
Asset
Management
Plan
CMB - Wanjia NA
CSI 1000
Index
Enhanced
Initiated Other 0.13% 1536800 1536800 0 0
Securities
Investment
FundStrategy investors or general
legal person becoming top 10
common shareholders due to Nil
rights issue (if applicable)
(see note 3)
Explanation on associated Shenzhen SASAC directly holds 100% equity of Shenzhen Agricultural Power Group Co. Ltd. and
relationship among the holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through Shenzhen
aforesaid shareholders Agricultural Power Group Co. Ltd.; The Company was not aware of any related relationship
between other shareholders above and whether they are parties acting in concert as defined by the
Acquisition Management Method of Listed Company.Description of the above
shareholders involved with
delegating/entrusted voting Nil
rights and abstention from
voting rights.Special note on the
repurchase account among the
top 10 shareholders (if Nil
applicable) (see note 10)
Particular about top ten shareholders holding unrestricted shares (Excluding shares lent through refinancing locked-up shares for
senior executives)
Type of shares
Shareholders’ name Quantity of unrestricted sharesheld at Period-end Type Quantity
Shenzhen Agricultural Products Group Co. 79447462 RMB common shares 79447462
Ltd
Shenzhen Agricultural Power Group Co. 66052518 RMB common shares 66052518
Ltd.Dongguan Fruit Vegetable and Non- staple 8698216 RMB common shares 8698216
Food Trading Market Co. Ltd
Hong Kong Securities Clearing Company 5492845 RMB common shares 5492845
Chen Jiuyang 3297070 RMB common shares 3297070
Zhong Zhenxin 3295500 RMB common shares 3295500
Sun Huiming 3236352 Domestically listed 3236352
foreign shares
CMB - Southern CSI 1000 Trading Open- 2726700 RMB common shares 2726700
End Index Securities Investment Fund
Bank of China Fund - Postal Savings Bank of 1579400 RMB common shares 1579400
China - Bank of China Fund -
Zhongchengxin Dividend Defense Stock
Index Collective Asset Management Plan
CMB - Wanjia CSI 1000 Index Enhanced 1536800 RMB common shares 1536800
Initiated Securities Investment Fund
Explanation of the association
or concerted action between
the top 10 shareholders of Shenzhen SASAC directly holds 100% equity of Shenzhen Agricultural Power Group Co. Ltd. and
non-restricted and tradable holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through Shenzhen
shares as well as between the Agricultural Power Group Co. Ltd.; The Company was not aware of any related relationship
top 10 shareholders of non- between other shareholders above and whether they are parties acting in concert as defined by the
restricted and tradable shares Acquisition Management Method of Listed Company.and the top 10 shareholders
Explanation on the
participation of the top 10
ordinary shareholders in
margin trading and securities Nil
lending business (if any) (see
Note 4)
Shareholders with over 5% of shares top ten shareholders and top ten shareholders of un-restrict shares participate in the lending of
shares through refinancing
□ Applicable□Not applicable
The top 10 shareholders and the top 10 shareholders of un-restricted tradable shares have changed compared to the previous period
due to the reasons of lending/returning of shares through refinancing□Applicable □Not applicable
Whether top ten common stock shareholders or top ten common stock shareholders of un-restrict shares have a buy-back agreement
dealing in reporting period or not
□ Yes □ No
The top ten common stock shareholders or top ten common stock shareholders of un-restrict shares didn’t have buy-back agreement
dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Legal
Controlling person/person Date of
shareholder in charge of the establishment Organization code Main operation business
unit
The general business projects are: food
safety infrastructure construction
(including the upgrading of the
farmers ’market the upgrading of public
places canteens the construction of
community cooked food centers and the
construction of agricultural product bases);
safe food circulation and terminal sales;
the establishment of food distribution
channel platforms; Food industry
investment and operation (Including the M
& A investment of the core resources of
the food industry chain and the cultivation
Shenzhen of enterprises in the future direction);
Agricultural Power Huang Wei Dec. 14 2017 91440300MA5EWWPXX2 Domestic trade (excluding franchised
Group Co. Ltd. monopolized and exclusively controlledcommodities); engaging in import and
export business (except for items
prohibited by laws administrative
regulations and the State Council
restricted items can only be operated after
obtaining permission); online business
activities (excluding restricted items).Licensed business items are food sales and
supply business; emergency material
production and operation; production
purchase and sale of I II and III medical
devices; pharmaceutical wholesale;
ordinary freight professional
transportation warehousing and logistics.Equity of other
domestic and
foreign listed
companies
controlled and In addition to holding 63.79% equity of the company Shenzhen Agricultural Power Group Co. Ltd. holds
participated in by 34% equity of Agricultural Products.controlling
shareholders during
the reporting period
Changes of controlling shareholder in reporting period
□ Applicable□Not applicable
The controlling shareholder of the company has not changed during the reporting period.3. Actual controller and persons acting in concert
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal
Actual controller person/person Date of Main operationin charge of the establishment Organization code business
unit
Shenzhen Municipal People’s
Government State-owned State-owned assets
Assets Supervision & Wang Yongjian 2004-04-02 11440300K317280672 supervision and
Administration Commission management
Equity of other
domestic/foreign listed
companies controlled by the -
actual controller in reporting
period
Changes of actual controller in reporting period
□ Applicable□Not applicable
No changes of actual controllers of the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
Shenzhen Municipal People’s Government State-owned Assets
Supervision & Administration Commission
Shenzhen Agricultural Power Group Co. Ltd.Shenzhen Agricultural Products Group Co.Ltd.Shenzhen Cereals Holdings Co. Ltd
The actual controller controlling the Company by entrust or other assets management
□ Applicable□Not applicable
4. The total number of shares pledged by the controlling shareholder or the first majority shareholder and
its persons acting in concert accounts for 80% of the shares held by them
□ Applicable□Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable□Not applicable6. Restriction on shareholding reduction of the controlling shareholder actual controller reorganizers and
other promising entities
□ Applicable□Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable □ Not applicable
Progress in implementing centralized bidding trading to reduce holdings of repurchase shares
□ Applicable □ Not applicableSection VIII. Preferred Stocks
□ Applicable□ Not applicable
The Company had no preferred stock in the Period.Section IX. Corporate Bonds
□ Applicable□Not applicable深圳市深粮控股股份有限公司 2024 年年度报告全文
Section X. Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 2025-04-28
Name of audit institute Grant Thornton Certified Public Accountant LLP (SpecialGeneral Partnership)
Document serial of audit report ZHTSH[2025]No.441A020235
Name of the CPA Gao Hong Shu Zhicheng
Text of Auditor’s Report
ZHTSH[2025]No.441A020235
To all shareholders of SHENZHEN CEREALS HOLDINGS CO. LTD.:
1. Auditing opinions
We have audited the financial statement under the name of SHENZHEN CEREALS HOLDINGS CO. LTD. (hereinafter referred to
as “SZCH”) including the consolidated and parent Company’s balance sheet of December 31 2024 and profit statement and cash
flow statement and statement on changes of shareholders’ equity for the year ended and notes to the financial statements for the year
ended.In our opinion the Company’s financial statements have been prepared in accordance with the Accounting Standards for Business
Enterprises and they fairly present the financial status of the Company and of its parent company as of December 31 2024 and its
operation results and cash flows for the year ended.
2. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities
under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of the
auditor’s report. We are independent of the Company in accordance with the Certified Public Accountants of China’s Code of Ethics
for Professional Accountants and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and
in forming our opinion thereon and we do not provide a separate opinion on this matter.The key audit matters identified in our audit are summarized as follows:
(i) Revenue recognition
For more details of the relevant information please refer to Note V.27 and Note VII.40 of financial statements.
1. Matter description
The main business of SZCH include grain and oil trade and processing income grain and oil warehousing logistics and service
income food and beverage and tea processing income leasing and other income. SZCH operating revenue for 2024 is
86深圳市深粮控股股份有限公司2024年年度报告全文
5375089846.91 yuan and it is one of the key indexes of performance of SZCH which has inherent risks in manipulation for
achieving the predicted target therefore the identification of operating income will be listed as the key auditing event.
2. Audit response
The audit procedures we have implemented for this key audit matter mainly include:
(1) Understand evaluate and test the design and operational effectiveness of internal control related to revenue;
(2) Understand the business models and acceptance terms of different businesses inspect the main sales contracts identify the
terms related to the transfer of commodity control rights and evaluate whether the revenue recognition policy complies with
the provisions of the Enterprise Accounting Standards;
(3) Perform analytical review procedures on operating revenue analyze changes in operating revenue costs and gross profit
margin on a monthly and product basis identify significant or abnormal fluctuations understand the reasons for abnormal
situations and evaluate their reasonableness;
(4) Search for basic information of major clients or newly added major clients through public channels conduct on-site visits to
major clients enquire about transaction content cooperation mode transaction amount acceptance terms and related
relationships and verify the authenticity and commercial substance of their transactions Focus on checking whether there are
financing trades without real transactions;
(5) Sample inspect supporting documents related to revenue confirmation including sales contracts sales invoices outbound
orders transfer of ownership documents proof of delivery accounting vouchers etc;
(6) Sample to confirm the current sales revenue and the initial and final balances of accounts receivable and payable to major
customers new customers etc.;
(7) Conduct a cut-off test on the operating income close to the balance sheet date evaluate whether the operating income is
recorded in the appropriate accounting period.(ii) Inventories and loss allowance of inventories
For more details of inventories and Loss allowance of inventories please refer to Note V.13 and Note VII. 7 of consolidated financial
statements.
1. Matter description
As of December 31 2024 the book value of inventory presented on the consolidated financial statements of SZCH was
4154400919.61 yuan and the loss allowance of inventories was 109402277.09 yuan the carrying amount of inventories was
4044998642.52 yuan accounting for 52.43% of the total assets. Due to the significant amount of inventories SZCH management
(Hereinafter referred to as “management”) needed to make significant judgments when determining the decrease in value of
inventories including the consideration of government reserve such as as grain & oil food and vegetable oil which are affected by
futures market These important judgments have a significant impact on the valuation of inventories and loss allowance of
inventories at period-end; therefore we determined the inventories and loss allowance of inventories as key audit matters.
2. Audit response
The audit procedures we have implemented for this key audit matter mainly include:
(1) Understand evaluate and test the design and operational effectiveness of internal control related to inventory;
(2) Understand the business models of reserve grain and commodity grain verify the matching between inventory structure and
operating income and analyze the rationality of inventory amounts;
87深圳市深粮控股股份有限公司2024年年度报告全文
(3) Review the management’s model and method for estimating the net realizable value of inventory as well as the relevant
parameters used. For products that can obtain publicly available market sales prices select a sample independently query
publicly available market price information and compare it with the estimated selling price.
(4) Implement monitoring procedure for inventory check its quantity and condition and implement alternative procedures for
fumigation warehouses;
(5) Obtain the calculation table for loss allowance of inventories and inventory age list execute inventory impairment testing
procedures and analyze whether the provision for inventory depreciation reserves is sufficient conduct an analytical review of
inventory with a longer inventory age based on the condition of the product and analyze whether the provision for inventory
depreciation is reasonable.
4. Other information
The management of SZCH (hereinafter referred to as “the management”) is responsible for other information which includes the
information covered in the Company’s 2024 annual report excluding the financial statement and our audit report.The audit opinion issued by us for the financial statement has not covered other information for which we do not issue any form of
assurance opinions.Considering our audit on financial statements we are liable to read other information during which we shall consider whether other
information differs materially from the financial statements or that we understand during our audit or whether there is any material
misstatement.Based on the works executed by us we should report the fact if we find any material misstatement in other information. In this
regards we have nothing to report.
5. Responsibilities of the management and those charged with governance for the financial statements
The management of SZCH is responsible for the preparation of the financial statements in accordance with the Accounting Standards
for Enterprise to secure a fair presentation and for the design establishment and maintenance of the internal control necessary to
enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a going
concern (if applicable) disclosing matters related to going concern and using the going concern assumption unless the management
either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
6. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with the CAS will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.As part of an audit in accordance with the CAS we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a
88深圳市深粮控股股份有限公司2024年年度报告全文
basis for audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal
control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and based on the audit evidence
obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by the CAS to draw
users’ attention in audit report to the related disclosures in the financial statements or if such disclosures are inadequate to
modify audit opinion. Our conclusions are based on the information obtained up to the date of audit report. However future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation including the disclosures structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express audit opinion on the financial statements. We are responsible for the direction supervision and
performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and
significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence and relevant countermeasures (if applicable).From the matters communicated with those charged with governance we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in the
auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we
determine that a matter should not be communicated in the auditor’s report because of the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.Grant Thornton Certified Public Accountant LLP Chinese CPA Gao Hong
(Special General Partnership) (Partner)
Shu Zhicheng
Chinese CPA
Beijing China April 28 2025
89深圳市深粮控股股份有限公司2024年年度报告全文
II. Financial Statement
Statement in Financial Notes are carried In RMB/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN CEREALS HOLDINGS CO. LTD.In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 168199291.23 240740787.28
Settlement provisions
Capital lent
Tradable financial assets 1122347.85
Derivative financial assets
Note receivable 2327160.00 113932.00
Account receivable 235789565.91 179828493.98
Receivable financing
Accounts paid in advance 9776028.70 17234701.92
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 19978436.61 29141966.16
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 4044998642.52 3458443989.04
Including: Data resources
Contract assets
Assets held for sale 121126137.62
Non-current asset due within one
year
Other current assets 113243285.26 105857923.48
Total current assets 4594312410.23 4153610279.33
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 45356888.44 74008926.48
Investment in other equity
instrument
90深圳市深粮控股股份有限公司2024年年度报告全文
Other non-current financial assets 57500.00 57500.00
Investment real estate 302075246.75 263597031.89
Fixed assets 2009520283.95 2171997328.52
Construction in progress 39312847.70 51288301.16
Productive biological asset 348924.60 358617.00
Oil and gas asset
Right-of-use assets 115258040.17 56933148.16
Intangible assets 523370792.77 546325555.22
Including: Data resources
Expense on Research and
Development
Including: Data resources
Goodwill
Long-term expenses to be
26013188.6824694318.05
apportioned
Deferred income tax asset 52903106.75 52757295.38
Other non-current asset 6021277.97 7297950.00
Total non-current asset 3120238097.78 3249315971.86
Total assets 7714550508.01 7402926251.19
Current liabilities:
Short-term loans 1484605101.05 1223462519.16
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 392787099.23 336165196.80
Accounts received in advance 1689748.86 1084701.60
Contract liability 126590458.95 86566253.73
Selling financial asset of repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 181550514.63 266214663.20
Taxes payable 102239439.35 86906785.70
Other account payable 268321327.50 278046251.53
Including: Interest payable
Dividend payable 2933690.04 2933690.04
Commission charge and
commission payable
Reinsurance payable
Liability held for sale 0.00 66579828.59
Non-current liabilities due within 42927367.21 22805473.76
91深圳市深粮控股股份有限公司2024年年度报告全文
one year
Other current liabilities 8042645.47 3896140.56
Total current liabilities 2608753702.25 2371727814.63
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 78084500.76 37744951.74
Long-term account payable 16636326.62 17994633.05
Long-term wages payable
Accrual liability
Deferred income 79203615.99 82819873.24
Deferred income tax liabilities 10495166.46 10937920.46
Other non-current liabilities
Total non-current liabilities 184419609.83 149497378.49
Total liabilities 2793173312.08 2521225193.12
Owner’s equity:
Share capital 1152535254.00 1152535254.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 1271908217.34 1276151523.07
Less: Inventory shares
Other comprehensive income -620406.95 -833174.82
Reasonable reserve 1152617.76 741968.19
Surplus public reserve 616729697.68 483103366.38
Provision of general risk
Retained profit 1877968762.99 1916792566.57
Total owner’ s equity attributable to
4919674142.824828491503.39
parent company
Minority interests 1703053.11 53209554.68
Total owner’ s equity 4921377195.93 4881701058.07
Total liabilities and owner’ s equity 7714550508.01 7402926251.19
Legal representative: Wang Zhikai
Person in charge of accounting works: Lu Yuhe
Person in charge of accounting institute: Lu Chengjun
2. Balance Sheet of Parent Company
92深圳市深粮控股股份有限公司2024年年度报告全文
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 103158696.39 149617836.08
Tradable financial assets 0.00 1122347.85
Derivative financial assets
Note receivable
Account receivable 116938612.94 65714555.94
Receivable financing
Accounts paid in advance 134194.35 336007.79
Other account receivable 2123872937.65 1624337855.63
Including: Interest receivable
Dividend receivable
Inventories
Including: Data resources
Contract assets
Assets held for sale 0.00 21675000.00
Non-current assets maturing within
one year
Other current assets 110478.30 55135837.73
Total current assets 2344214919.63 1917939441.02
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 4031188641.37 4026844425.09
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 15100142.92 15571733.20
Fixed assets 30997299.26 32858541.01
Construction in progress
Productive biological assets 348924.60 358617.00
Oil and natural gas assets
Right-of-use assets 67225820.17 0.00
Intangible assets 21988398.89 23006791.89
Including: Data resources
Research and development costs
Including: Data resources
Goodwill
Long-term deferred expenses 3403734.80 2291236.03
Deferred income tax assets 10774610.43 10260054.61
Other non-current assets 2497360.73 3744657.76
Total non-current assets 4183524933.17 4114936056.59
93深圳市深粮控股股份有限公司2024年年度报告全文
Total assets 6527739852.80 6032875497.61
Current liabilities:
Short-term borrowings 272901652.46
Trading financial liability
Derivative financial liability
Notes payable
Account payable
Accounts received in advance
Contract liability
Wage payable 49395879.48 31524389.29
Taxes payable 3570294.15 2801152.52
Other accounts payable 228671937.92 1200576358.07
Including: Interest payable
Dividend payable 2933690.04 2933690.04
Liability held for sale
Non-current liabilities due within
22332687.31
one year
Other current liabilities
Total current liabilities 576872451.32 1234901899.88
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 46945825.26
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 46945825.26 0.00
Total liabilities 623818276.58 1234901899.88
Owners’ equity:
Share capital 1152535254.00 1152535254.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 3018298284.55 3018106568.27
Less: Inventory shares
Other comprehensive income
94深圳市深粮控股股份有限公司2024年年度报告全文
Special reserve
Surplus reserve 344325269.54 210698938.24
Retained profit 1388762768.13 416632837.22
Total owner’s equity 5903921576.22 4797973597.73
Total liabilities and owner’s equity 6527739852.80 6032875497.61
3. Consolidated Profit Statement
In RMB
Item 2024 2023
I. Total operating income 5375089846.91 6190005356.82
Including: Operating revenue 5375089846.91 6190005356.82
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4874596515.28 5697359360.35
Including: Operating cost 4479001434.83 5228845801.34
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Tax and extras 19652659.06 18910438.82
Sales expense 149810329.96 176429835.98
Administrative expense 168245200.59 213065091.64
R&D expense 25208644.43 20045364.68
Financial expense 32678246.41 40062827.89
Including: Interest
33986936.3239968255.33
expenses
Interest
1832540.57959189.54
income
Add: Other income 12340535.46 22969158.29
Investment income (Loss is
3416742.979954884.45
listed with “-”)
Including: Investment income
-3992524.743332391.85
on affiliated company and joint venture
The termination of
95深圳市深粮控股股份有限公司2024年年度报告全文
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
0.00182701.67
value (Loss is listed with “-”)
Loss of credit impairment
166728.94-3172372.15
(Loss is listed with “-”)
Losses of devaluation of asset
-102359076.35-104336237.13
(Loss is listed with “-”)
Income from assets disposal
5281839.252394378.42
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
419340101.90420638510.02
“-”)
Add: Non-operating income 608747.13 2445728.23
Less: Non-operating expense 603979.68 1800973.49
IV. Total profit (Loss is listed with “-”) 419344869.35 421283264.76
Less: Income tax expense 95201262.19 74736397.57
V. Net profit (Net loss is listed with “-”) 324143607.16 346546867.19
(i) Classify by business continuity
1.continuous operating net profit
324143607.16346546867.19(net loss listed with ‘-”)
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
325309578.52347739109.06
of parent company
2.Minority shareholders’ gains and
-1165971.36-1192241.87
losses
VI. Net after-tax of other comprehensive
212767.8758327.88
income
Net after-tax of other comprehensive
income attributable to owners of parent 212767.87 58327.88
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
96深圳市深粮控股股份有限公司2024年年度报告全文
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 212767.87 58327.88
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 212767.87 58327.88
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 324356375.03 346605195.07
Total comprehensive income
attributable to owners of parent 325522346.39 347797436.94
Company
Total comprehensive income
-1165971.36-1192241.87
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.2823 0.3017
(ii) Diluted earnings per share 0.2823 0.3017
As for the enterprise combined under the same control the net profit achieved by the merged party before combination is
92048.86 yuan and the net profit achieved by the merged party in last period is negative 85624.62 yuan.
Legal representative: Wang Zhikai
Person in charge of accounting works: Lu Yuhe
Person in charge of accounting institute: Lu Chengjun
4. Profit Statement of Parent Company
97深圳市深粮控股股份有限公司2024年年度报告全文
In RMB
Item 2024 2023
I. Operating revenue 169956053.77 156547962.65
Less: Operating cost 2808669.32 471590.28
Taxes and surcharge 548323.11 461125.55
Sales expenses
Administration expenses 87567563.48 69872687.40
R&D expenses
Financial expenses -41291103.22 -31215787.32
Including: Interest
4609336.811340647.66
expenses
Interest income 46144115.42 32809723.32
Add: Other income 185224.01 382620.07
Investment income (Loss is
1215262497.73307281666.79
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
0.00-105784.51
(Loss is listed with “-”)
Loss of credit impairment
-5530.9011212.35
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income on disposal of assets
(Loss is listed with “-”)II. Operating profit (Loss is listed with “-
1335764791.92424528061.44
”)
Add: Non-operating income 0.00 5000.02
Less: Non-operating expense 16034.73 1099.02
III. Total Profit (Loss is listed with “-”) 1335748757.19 424531962.44
Less: Income tax -514555.82 -10260054.61
IV. Net profit (Net loss is listed with “-”) 1336263313.01 434792017.05
(i) continuous operating net profit
1336263313.01434792017.05(net loss listed with ‘-”)
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other comprehensive
income
98深圳市深粮控股股份有限公司2024年年度报告全文
(i) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
VI. Total comprehensive income 1336263313.01 434792017.05
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2024 2023
I. Cash flows arising from operating
activities:
Cash received from selling
5740779445.446417740069.92
commodities and providing labor
99深圳市深粮控股股份有限公司2024年年度报告全文
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 2979376.42 3183211.56
Other cash received concerning
265985560.00284194324.86
operating activities
Subtotal of cash inflow arising from
6009744381.866705117606.34
operating activities
Cash paid for purchasing
5403858690.855308048692.21
commodities and receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 340520836.42 375960027.05
Taxes paid 146884244.82 138212589.39
Other cash paid concerning
133798229.15297161582.08
operating activities
Subtotal of cash outflow arising from
6025062001.246119382890.73
operating activities
100深圳市深粮控股股份有限公司2024年年度报告全文
Net cash flows arising from operating
-15317619.38585734715.61
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
400281319.811558000000.00
investment
Cash received from investment
6078274.346844163.83
income
Net cash received from disposal of
fixed intangible and other long-term 17413889.42 3450760.15
assets
Net cash received from disposal of
18619360.206881320.00
subsidiaries and other units
Other cash received concerning
0.00726511.34
investing activities
Subtotal of cash inflow from investing
442392843.771575902755.32
activities
Cash paid for purchasing fixed
95475079.77147621094.50
intangible and other long-term assets
Cash paid for investment 345009000.00 1543000000.00
Net increase of mortgaged loans
Net cash received from subsidiaries
3151787.390.00
and other units obtained
Other cash paid concerning
7559395.680.00
investing activities
Subtotal of cash outflow from investing
451195262.841690621094.50
activities
Net cash flows arising from investing
-8802419.07-114718339.18
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
0.00490000.00
investment
Including: Cash received from
absorbing minority shareholders’ 0.00 490000.00
investment by subsidiaries
Cash received from loans 3395816991.96 1930787809.13
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
3395816991.961931277809.13
activities
Cash paid for settling debts 3140732951.95 1872206173.08
Cash paid for dividend and profit
258068059.21324657445.10
distributing or interest paying
101深圳市深粮控股股份有限公司2024年年度报告全文
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning
50811877.4034531394.28
financing activities
Subtotal of cash outflow from financing
3449612888.562231395012.46
activities
Net cash flows arising from financing
-53795896.60-300117203.33
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 105610.80 3592205.42
exchange rate
V. Net increase of cash and cash
-77810324.25174491378.52
equivalents
Add: Balance of cash and cash
236745667.1062254288.58
equivalents at the period -begin
VI. Balance of cash and cash equivalents
158935342.85236745667.10
at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item 2024 2023
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 733933422.20 729054189.00
services
Write-back of tax received
Other cash received concerning
4010769222.832005313299.07
operating activities
Subtotal of cash inflow arising from
4744702645.032734367488.07
operating activities
Cash paid for purchasing
421487.00
commodities and receiving labor service
Cash paid to/for staff and workers 65491681.47 49590320.93
Taxes paid 1289038.98 31145617.56
Other cash paid concerning
4812539395.942100148518.90
operating activities
Subtotal of cash outflow arising from
4879741603.392180884457.39
operating activities
Net cash flows arising from operating
-135038958.36553483030.68
activities
II. Cash flows arising from investing
activities:
Cash received from recovering 325621806.51 658000000.00
102深圳市深粮控股股份有限公司2024年年度报告全文
investment
Cash received from investment
14422758.193654709.03
income
Net cash received from disposal of
fixed intangible and other long-term
assets
Net cash received from disposal of
16360810.206881320.00
subsidiaries and other units
Other cash received concerning
0.0016592433.35
investing activities
Subtotal of cash inflow from investing
356405374.90685128462.38
activities
Cash paid for purchasing fixed
7590134.5710063850.16
intangible and other long-term assets
Cash paid for investment 295009000.00 643000000.00
Net cash received from subsidiaries
3151787.39
and other units obtained
Other cash paid concerning
0.0047100000.00
investing activities
Subtotal of cash outflow from investing
305750921.96700163850.16
activities
Net cash flows arising from investing
50654452.94-15035387.78
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 1635652509.73 5000000.00
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
1635652509.735000000.00
activities
Cash paid for settling debts 1363121027.51 105000000.00
Cash paid for dividend and profit
234609740.44289793581.08
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
1597730767.95394793581.08
activities
Net cash flows arising from financing
37921741.78-389793581.08
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 3623.95 2464.09
exchange rate
103深圳市深粮控股股份有限公司2024年年度报告全文
V. Net increase of cash and cash
-46459139.69148656525.91
equivalents
Add: Balance of cash and cash
149617836.08961310.17
equivalents at the period -begin
VI. Balance of cash and cash equivalents
103158696.39149617836.08
at the period -end
7. Consolidated Statement of Changes in Owners’ Equity
Current period
In RMB
2024
Owners’ equity attributable to the parent Company
Other
equity instrument
Perp Less Prov Minori
Pref etua
:
Inve Other Reaso ision ty
Total
Share erre l Ot Capital ntor compre nable Surplus of Retaine
Ot owners’
capital capi reserve hensive reserv reserve gene d profit he Subtotal
interes equity
d tal he y
ts
stoc income e ral
r
k secu
r shar risk
ritie es
s
I.Balanc
e at the 115253 127615 - 7419 48310 532090.00 83317 3366.3 0.00 191679 0. 482849 554.6 488170end of 5254.00 1523.07 4.82 68.19 8 2566.57 00 1503.39 8 1058.07the last
year
Add:
Change
s of
accoun 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
ting
policy
Error
correcti
on of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00the last
period
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II.Bala
nce at
the
beginni 115253 127615
-4831053209
0.008331774193366.30.001916790.482849554.6488170
ng of 5254.00 1523.07 4.82 68.19 8 2566.57 00 1503.39 8 1058.07
this
year
III.Increas
e/
Decrea
se in -
this - 13362 -0.00 424330 0.00 21276 4106 6331.3 0.00 388238 0. 911826 51506 396761year 5.73 7.87 49.57 0 03.58 00 39.43 501.5 37.86(Decre 7
ase is
listedwith “-”)
(i)
Total
compre 0.00 0.00 21276 0.00 0.00 0.00 325309 0. 325522
-
7.87578.5200346.391165
324356
hensive 971.36 375.03
income
(ii) -
Owner - - -
s’ 0.00 0.00 0.00
0.
004243300.000.000.000.000.000.00
0.
00424330
50340545838
devote 5.73 5.73
530.2
135.94
104深圳市深粮控股股份有限公司2024年年度报告全文
d and
decreas
ed
capital
1.Com
mon
shares
investe 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00d by
shareh
olders
2.Capit
al
investe
d by
holders
of 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
other
equity
instrum
ents
3.
Amoun
t
reckon
ed into
owners
equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
with
share-
based
payme
nt
4.--
--
Other 424330 0.00 0.00 0.00 0.00 0.00 0.00
0.50340
5.7300
424330530.25458385.73135.94
(III)
Profit 13362 - 0. - -
distribu 0.00 0.00 0.00 0.00 6331.3 0.00 364133 00 230507 230507
tion 0 382.10 050.80 050.80
1.
Withdr
awal of 13362 - 0.surplus 0.00 0.00 0.00 0.00 6331.3 0.00 133626 00 0.00 0.00
reserve 0 331.30
s
2.
Withdr
awal of
general 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00risk
provisi
ons
3.
Distrib
ution
for - - -
owners 0.00 0.00 0.00 0.00 0.00 0.00 230507
0.
00230507230507
(or 050.80 050.80 050.80
shareh
olders)
4.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
(IV)
Carryin
g
forwar
d 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0. 0.00
internal 00
owners
’
equity
1.
Capital
reserve
s 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00conver
sed to
capital
105深圳市深粮控股股份有限公司2024年年度报告全文
(share
capital)
2.
Surplus
reserve
s
conver 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.sed to 00
0.00
capital
(share
capital)
3.
Remed
ying
loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00with
surplus
reserve
4.Carry
-over
retaine
d
earning
s from 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
the
defined
benefit
plans
5.Carry
-over
retaine
d
earning
s from 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
other
compre
hensive
income
6.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.
000.00
(V)
Reason
able 0.00 0.00 0.00
4106
49.570.000.000.00
0.410649.410649.
005757
reserve
1.
Withdr
awal in 1243
the 0.00 0.00 0.00 738.4 0.00 0.00 0.00
0.124373124373
008.418.41
report 1
period
2.
Usage - - -
in the 0.00 0.00 0.00 8330 0.00 0.00 0.00 0.report 88.84 00
833088.833088.
8484
period
(VI)Ot 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.hers 00 0.00
IV.Balanc
e at the 115253 127190 - 1152 61672end of 0.00 62040 617.7 9697.6 0.00 187796 0. 491967 1703 492137
the 5254.00 8217.34 6.95 6 8 8762.99 00 4142.82 053.11 7195.93
report
period
Last period
In RMB
2023
Owners’ equity attributable to the parent Company
Other
Item Capit Less: Other
Minor Total
Share equity instrument Reaso Surpl Provis ity owner
capita Prefer Perpet al Invent
compr
ehensi nable us ion of
Retai Subto intere s’
l red ual Other reserv ory ve reserv reserv gener
ned Other
profit tal sts equity
stock capita e shares incom e e al risk
106深圳市深粮控股股份有限公司2024年年度报告全文
l e
securi
ties
I.Balan
ce at
the 1152 1259 - 4396 1910 4762 6951 4831
end of 5352 6396 8915
2203
54.0056.6502.7001.70
2416954008191722.5936
the 4.67 84.79 59.11 40 81.51
last
year
Add:
Chan
ges of 1485 1485 1485
accou 97.59 97.59 97.59
nting
policy
Error
correc
tion
of the
last
period
1539 -1043 4958 4958Other 4408. 6209. 198.9 198.965 66 9 9
II.Balan
ce at
the 1152 1275 - 2203 4396 1900 4767 6951 4836
begin 5352 0340 8915 2416 0.00 6664 1887 1722. 7004
ning 54.00 65.30 02.70
01.704.6772.7255.694078.09
of this
year
III.Increa
se/
Decre
ase in
this 1117 5832 5216 4347 1612 6130
-
1630 4500year 457.7 7.88 66.49 9201. 0.00 6093. 2747.(Decr 7 71 85 70 2167.
0579.
98
ease 72
is
listed
with
“-”)
(i)
Total
compr 5832 3477 3477
-
ehensi 3910 9743 1192
3466
7.88 241.8 0519ve 9.06 6.94 5.07
incom 7
e
(ii)
Owne
rs’
devot
ed 1117 1117 4900 1607
and 457.7 457.77 7 00.00
457.7
decre 7
ased
capita
l
1.Co
mmon
shares
invest 4900 4900
ed by 00.00 00.00
share
holder
s
2.Cap
ital
invest
ed by
holder
s of
other
107深圳市深粮控股股份有限公司2024年年度报告全文
equity
instru
ments
3.
Amou
nt
recko
ned
into
owner
s
equity
with
share-
based
paym
ent
4.111711171117
Other 457.7 457.7 457.77 7 7
(III) - - - -
Profit 4347 3316 2881 1559 3037
distrib 9201. 0.0071 1301 3381 9925. 3373ution 5.21 3.50 85 9.35
1.
Withd
rawal -
of 4347
surplu 9201.
4347
9201.0.00
s 71 71
reserv
es
2.
Withd
rawal
of
gener
al risk
provis
ions
3.
Distri
bution
for - - -
owner 2881 2881 2881
s (or 3381 3381 3381
share 3.50 3.50 3.50
holder
s)
--
4.15591559
Other 9925. 9925.
8585
(IV)
Carryi
ng
forwa
rd
intern
al
owner
s’
equity
1.
Capit
al
reserv
es
conve
rsed
to
capita
l
(share
capita
l)
2.
Surpl
us
reserv
108深圳市深粮控股股份有限公司2024年年度报告全文
es
conve
rsed
to
capita
l
(share
capita
l)
3.
Reme
dying
loss
with
surplu
s
reserv
e
4.Carr
y-
over
retain
ed
earnin
gs
from
the
define
d
benefi
t
plans
5.Carr
y-
over
retain
ed
earnin
gs
from
other
compr
ehensi
ve
incom
e
6.
Other
(V)
Reaso
nable 5216 5216 5216
reserv 66.49 66.49 66.49
e
1.
Withd
rawal 1981 1981 1981
in the 520.9 520.9 520.9
report 8 8 8
period
2.
Usage - - -
in the 1459 1459 1459
report 854.4 854.4 854.4
period 9 9 9
(VI)O
thers
IV.Balan
ce at
the 1152 1276 - 4831 1916 4828 5320 4881
end of 5352 1515 8331
7419
68.1903360.00792549159554.7010
the 54.00 23.07 74.82 6.38 66.57 03.39 68 58.07
report
period
109深圳市深粮控股股份有限公司2024年年度报告全文
8.Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2024
Other equity instrument
Less: OtherItem Share Perpetua Capital Inventor compreh
Reasona Surplus Retaine Total
capital Preferre l capital Other reserve y shares ensive
ble
reserve reserve d profit
Other owners’
d stock securitie income equity
s
I.Balance
at the 115253
end of 5254.00 0.00 0.00 0.00
301810210698416632479797
6568.27938.24837.223597.73
the last
year
Add:
Changes
of
accounti
ng
policy
Error
correcti
on of
the last
period
Other
II.Balance
at the 115253
beginnin 5254.00 0.00 0.00 0.00
301810210698416632479797
6568.27938.24837.223597.73
g of this
year
III.Increase
/
Decreas
e in this
year 191716. 133626 972129 110594
(Decrea 28 331.30 930.91 7978.49
se is
listedwith “-”)
(i)
Total
compreh 133626 133626
ensive 3313.01 3313.01
income
(ii)
Owners’
devoted 191716. 191716.and 28 28
decrease
d capital
1.Comm
on
shares
invested
by
sharehol
ders
2.Capita
l
invested
by
holders
of other
equity
instrume
nts
3.
Amount
reckone
110深圳市深粮控股股份有限公司2024年年度报告全文
d into
owners
equity
with
share-
based
payment
4. Other 191716. 191716.28 28
(III)
Profit 133626 - -
distribut 331.30 364133 230507
ion 382.10 050.80
1.
Withdra 133626 -wal of 331.30 133626 0.00surplus 331.30
reserves
2.
Distribu
tion for
owners
(or
sharehol
ders)
--
3. Other 230507 230507
050.80050.80
(IV)
Carryin
g
forward
internal
owners’
equity
1.
Capital
reserves
convers
ed to
capital
(share
capital)
2.
Surplus
reserves
convers
ed to
capital
(share
capital)
3.
Remedy
ing loss
with
surplus
reserve
4.Carry-
over
retained
earnings
from the
defined
benefit
plans
5.Carry-
over
retained
earnings
from
other
compreh
ensive
income
6. Other
(V)
Reasona
ble
reserve
111深圳市深粮控股股份有限公司2024年年度报告全文
1.
Withdra
wal in
the
report
period
2. Usage
in the
report
period
(VI)Oth
ers
IV.Balance
at the
end of 115253 0.00 0.00 0.00 301829 344325 138876 590392
the 5254.00 8284.55 269.54 2768.13 1576.22
report
period
Last period
In RMB
2023
Other equity instrument
Item Share Perpetua Capital Less:
Other
capital Inventor compreh
Reasona Total
Preferre l capital reserve ensive ble
Surplus Retaine Other owners’
d stock securitie Other y shares income reserve
reserve d profit equity
s
I.Balance
at the 115253 301810 167219 313453 465131
end of 5254.00 6568.27 736.53 835.38 5394.18
the last
year
Add:
Changes
of
accounti
ng
policy
Error
correcti
on of
the last
period
Other
II.Balance
at the 115253 301810 167219 313453 465131
beginnin 5254.00 6568.27 736.53 835.38 5394.18
g of this
year
III.Increase
/
Decreas
e in this
year 434792 103179 146658
(Decrea 01.71 001.84 203.55
se is
listedwith “-”)
(i)
Total
compreh 434792 434792
ensive 017.05 017.05
income
(ii)
Owners’
devoted
and
decrease
d capital
112深圳市深粮控股股份有限公司2024年年度报告全文
1.Comm
on
shares
invested
by
sharehol
ders
2.Capita
l
invested
by
holders
of other
equity
instrume
nts
3.
Amount
reckone
d into
owners
equity
with
share-
based
payment
4. Other
(III)
Profit 434792 - -
distribut 01.71 331613 288133
ion 015.21 813.50
1.
Withdra
wal of 434792
-
01.71 434792surplus 01.71
reserves
2.
Distribu
tion for - -
owners 288133 288133
(or 813.50 813.50
sharehol
ders)
3. Other
(IV)
Carryin
g
forward
internal
owners’
equity
1.
Capital
reserves
convers
ed to
capital
(share
capital)
2.
Surplus
reserves
convers
ed to
capital
(share
capital)
3.
Remedy
ing loss
with
surplus
reserve
4.Carry-
over
retained
earnings
from the
defined
113深圳市深粮控股股份有限公司2024年年度报告全文
benefit
plans
5.Carry-
over
retained
earnings
from
other
compreh
ensive
income
6. Other
(V)
Reasona
ble
reserve
1.
Withdra
wal in
the
report
period
2. Usage
in the
report
period
(VI)Oth
ers
IV.Balance
at the
end of 115253 301810 210698 416632 479797
the 5254.00 6568.27 938.24 837.22 3597.73
report
period
114深圳市深粮控股股份有限公司2024年年度报告全文
III. Basic information of Company
Shenzhen Cereals Holdings Co. Ltd. (formerly the Shenzhen Shenbao Industrial Co. Ltd. hereinafter referred to as “SZCH”
“Company” or “the Company” ) formerly named Shenzhen Shenbao Canned Food Company obtained approval (Document (1991)
No.978) from Shenzhen Municipal People’s Government to change to the name as Shenzhen Shenbao Industrial Co. Ltd. on August
1991.Approved by the People’s Bank of China(Document (1991)No.126) the Company was listed on Shenzhen Stock Exchange.
The Company belongs to the grain oil food and beverage industry.As of December 31 2023 the cumulative amount of shares issued by the Company was 1152535254 shares with registered capital
of 1152535254.00 yuan. Registered address: Shenzhen Guangdong Province; HQ of the Company: 8/F Tower B No.4 Building
Software Industry Base South District Science & Technology Park Xuefu Rd. Yuehai Street Nanshan District Shenzhen.Main business of the Company: wholesale and retail business food processing and manufacturing business leasing and business
service business. The wholesale and retail business mainly involves the sales of grain and oil products such as rice wheat rice corn
barley sorghum edible oil etc. as well as fine tea beverages and condiments. The food processing and manufacturing business
mainly includes the processing of flour rice edible oil tea and natural plant extracts beverages condiments etc. The leasing and
business service business provides grain oil and food and beverage import and export trade warehousing and storage logistics and
distribution quality testing information technology services property leasing and management commercial operation management
and other services for all kinds of customers upstream and downstream of the industrial chain.The parent enterprise of the Company is Shenzhen Food Materials Group Co. Ltd and the actual controller of the Company is
Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration Commission
The financial statements and notes to financial statements has been approved by the14th meeting of the 11th session of BOD of the
company on April 28 2025.IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statement are prepared in line with the Accounting Standards for Business Enterprise -Basic Standard issued by
Ministry of Finance and specific accounting principle as well as the application guidance for the accounting principles for enterprise
interpretation to the accounting principles for enterprise and other related requirements (hereinafter referred to as Accounting
Standards for Business Enterprise) combining the Information Disclosure Preparation Rules for Company Public Issuing Securities
No.15-General Rules for Financial Report of the CSRC(Revised in 2023).
2. Going concern
The financial statement has been prepared on a going concern basis.V. Major accounting policy and accounting estimate
Specific accounting policies and accounting estimate tips:
the company has determined fixed asset depreciation intangible asset amortization and revenue recognition policies based on its
own production and operation characteristics. Specific accounting policies can be found in Note III.17 Note III. 21 Note III.22 and
Note III.27.
115深圳市深粮控股股份有限公司2024年年度报告全文
1. Statement for observation of Accounting Standard for Business Enterprise
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for Business Enterprise
issued by Ministry of Finance which truly and completely reflect the financial status of the Company and parent company on
December 31 2024 as well as the consolidate and parent company’s operational results and cash flow for year of 2024.
2. Accounting period
Calendar year is the accounting period for the Company that is falls to the range starting from 1 January to 31 December.
3. Operating cycle
Operating cycle of the Company is 12 months
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping. Overseas subsidiaries select their accounting
base currency based on the currency of the main economic environment in which they operate.
5. Method for determining importance criteria and selection criteria
? Applicable □ Not applicable
Item Importance criteria
Important accounts receivable with single provision for bad debt reserves Amount ≥ 10000000
Other accounts receivable with significant single provision for bad debt reserves Amount ≥10000000
6. Accounting treatment methods for business combinations under the same control and those not under
the same control
(1) Merger of enterprises under the same control
For merge of business under the same control the assets and liabilities of the merged party acquired by the merging party in the
merger shall be measured at the carrying amount of the merged party in the final controlling party’s consolidated financial statements
on the merger date. The difference between the book value of the merger consideration (or the total face value of the issued shares)
and the book value of the net assets obtained in the merger shall be adjusted to the capital reserve (share premium). If the capital
reserve (share premium) is insufficient to offset the retained earnings shall be adjusted.Implementing enterprise mergers under the same control through multiple transactions and step-by-step implementation
The assets and liabilities of the merged party acquired by the merging party in the merger shall be measured at their carrying amounts
in the consolidated financial statements of the ultimate controlling party on the merger date; The difference between the book value
of the investments held before the merger and the book value of the newly paid consideration on the merger date and the book value
of the net assets obtained during the merger is adjusted to the capital reserve (share premium). If the capital reserve is insufficient to
offset the retained earnings are adjusted. The long-term equity investment held by the merging party before obtaining control of the
merged party shall be offset against the beginning retained earnings or current period gains/losses of the comparative financial period
116深圳市深粮控股股份有限公司2024年年度报告全文
respectively in case the relevant gains/losses other comprehensive income and other changes in shareholders’ equity have been
recognized within the period from the latter between the date of acquiring the original equity and the date when the merging party
and the merged party are under the same ultimate control as the merging party to the merging date.
(2) Merger of enterprises not under the same control
For merge of enterprises not under the same control the merger cost is the fair value of the assets paid liabilities incurred or assumed
and equity securities issued on the acquisition date to obtain control over the acquired party. On the purchase date the assets
liabilities and contingent liabilities of the acquired party are recognized at fair value.The difference between the merger cost and the fair value share of identifiable net assets obtained from the acquired party in the
merger shall be recognized as goodwill and subsequently measured at cost minus accumulated impairment provisions; In case the
merge cost is lower than the fair value of identifiable net assets obtained from the acquired party in the merge the difference shall be
recognized in the gains/losses of current period after review.Implementing business mergers under different control through multiple transactions in stages
The merger cost is the sum of the consideration paid on the purchase date and the fair value of the equity of the acquired party held
prior to the purchase date. For the equity of the purchased party already held before the purchase date it shall be remeasured at its
fair value on the purchase date and the difference between the fair value and its book value shall be recognized in the current
investment income; The changes in other comprehensive income and other shareholders’ equity involved with the equity of the
purchased party before purchase date shall be carried forward to the current income of the purchase date not including other
comprehensive income arising from changes in net liabilities or net assets if the invested entity remeasures the defined benefit plan
as well as other comprehensive income related to non-trading equity instrument investments that were originally designated to be
measured at fair value with changes recognized in other comprehensive income.
(3) Treatment of transaction costs in enterprise merger
The intermediary fees for auditing legal services evaluation and consulting as well as other related management expenses incurred
for business mergers are recognized in the current period’s gains/losses when incurred. The transaction costs of equity or debt
securities issued as consideration for the merger shall be included in the initial recognition amount of equity or debt securities.
7. Criteria for judging control and preparation methods for consolidated financial statements
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined based on control. Control refers to the company
having the power over the invested entity enjoying variable returns through participating in related activities of the invested entity
and having the ability to use the power over the invested entity to influence its return amount. When changes in relevant facts and
circumstances result in changes in the relevant elements involved in the definition of control the company will conduct reassessment.When determining whether to include a structured entity in the scope of consolidation the company takes into account all facts and
circumstances including evaluating the purpose and design of the establishment of the structured entity identifying the types of
variable returns and evaluating whether to control the structured entity by participating in its related activities and assuming some or
all of the variability of returns.
(2) Method of preparing consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiaries and are prepared by
the Company based on other relevant information. When preparing consolidated financial statements the accounting policies and
117深圳市深粮控股股份有限公司2024年年度报告全文
period requirements of the Company and its subsidiaries are consistent and significant transactions and balances between companies
are offset.During the reporting period subsidiaries and businesses added due to merge of enterprises under the same control shall be deemed to
be included in the scope of the company’s consolidation from the date of being under the same ultimate control. The operating results
and cash flows from the date of being under the same ultimate control shall be separately included in the consolidated income
statement and consolidated cash flow statement.During the reporting period the income expenses and profits of subsidiaries and businesses added due to merge of enterprises not
under the same control from the purchase date to the end of the reporting period shall be included in the consolidated income
statement and their cash flows shall be included in the consolidated cash flow statement.The portion of the shareholder’s equity of the subsidiary that does not belong to the company shall be separately listed as minority
shareholder’s equity in the consolidated balance sheet under the shareholder's equity item; The shares belonging to minority interests
in the current net gains and losses of subsidiaries are presented as minority interests under the net profit in the consolidated income
statement. In case the losses assumed by the minority shareholders in the subsidiary exceed their share in the initial owner's equity of
the subsidiary the balance shall still offset against the decrease in the minority shareholder’s equity.
(3) Purchase of minority shareholder equity in subsidiary companies
The difference between the cost of newly acquired long-term equity investments due to the purchase of minority equity and the net
asset that should be continuously calculated from the date of purchase or merger based on the new shareholding ratio as well as the
difference between the disposal price obtained from partial disposal of equity investments in subsidiaries without losing control and
the net asset that should be continuously calculated from the date of purchase or merger corresponding to the disposal of long-term
equity investments shall be adjusted to the capital reserve (share premium) in the consolidated balance sheet. If the capital reserve is
insufficient to offset retained earnings shall be adjusted.
(4) Treatment of loss of control over subsidiaries
If control over the original subsidiary is lost due to the disposal of partial equity investments or other reasons the remaining equity
shall be remeasured at fair value on the date of loss of control; The difference between the sum of the consideration obtained from
the disposal of equity and the fair value of the remaining equity minus the sum of the book value of net asset book of the original
subsidiary that should have been continuously calculated from the purchase date based on the original shareholding ratio and the
goodwill is recognized in the investment income for the period when control is lost.Other comprehensive income related to equity investments in the original subsidiary should be accounted for on the same basis as the
direct disposal of related assets or liabilities by the original subsidiary when control is lost. Other changes in owner’s equity related
to the original subsidiary and measured at equity method should be transferred to the current period’s gains and losses when control
is lost.
8. Classification of joint venture arrangements and accounting treatment methods for joint operations
Joint venture arrangement refers to an arrangement jointly controlled by two or more participating parties. The joint venture
arrangements of the company are divided into joint operations and joint ventures.
(1) Joint operation
In joint operation the company enjoys the assets related to the arrangement and assumes the liabilities related to the arrangement.The company confirms the following items related to the share of interests in joint operations and conducts accounting treatment in
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accordance with the relevant accounting standards for enterprises:
A. Recognize individually held assets and jointly held assets based on their respective shares;
B. Recognize individual liabilities and jointly assume liabilities based on their respective shares;
C. Recognize the income generated from the sale of its share of joint operating output;
D. Recognize the revenue generated from the sale of output in joint operations based on their share;
E. Recognize the expenses incurred separately and the expenses incurred in joint operations based on their respective shares.
(2) Joint venture
In a joint venture the company only has the right to the net assets arranged by it.The company accounts for investments in joint ventures in accordance with the provisions of equity method accounting for long-term
equity investments.
9. Recognition standards for cash and cash equivalents
Cash refers to the cash on hand and cash equivalents of deposits that can be used for payment at any time. Cash equivalent refers to
the investment held by the Company with short maturity and strong liquidity that are easy to be converted into known amounts with
little risk of change in cash value.
10. Foreign currency transactions and foreign currency statement translation
(1)Foreign currency transactions
The company conducts foreign currency business and converts the amount of the accounting currency at the exchange rate which is
determined in a systematic and reasonable manner and is approximately the spot exchange rate on the date of transaction.On the balance sheet date foreign currency monetary items are converted with the spot exchange rate on the balance sheet date. The
exchange difference arising from the difference between the spot exchange rate on the balance sheet date and the exchange rate for
initial recognition or on the previous balance sheet date shall be recognized in the current period's gains and losses; For foreign
currency non-monetary items measured at historical cost the spot exchange rate on the transaction date shall still be used for
translation; For foreign currency non-monetary items measured at fair value the spot exchange rate on the date of fair value
determination is adopted. The difference between the converted amount in the accounting currency and the original amount in the
accounting currency is recognized in the gains and losses of current period or other comprehensive income based on the nature of the
non-monetary item.
(2) Translation of foreign currency financial statements
At the balance sheet date when translating the foreign currency financial statements of overseas subsidiaries for the assets and
liabilities items in the balance sheet the spot exchange rate on the balance sheet date is used for translation. For the items of
shareholders’ equity except for “retained profits” other items are translated at the spot exchange rate on the date of occurrence.For the revenue and expense items in the income statement the exchange rate determined by a reasonable method of the system
and approximate to the spot exchange rate on the transaction date will be available for translation.
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All items in the cash flow statement are translated at the exchange rate determined by a reasonable method of the system and
approximate to the spot exchange rate on the date of cash flow occurrence. The impact amount of exchange rate fluctuations on
cash is treated as an adjustment item and is booked into the “Impact of Exchange Rate Fluctuations on Cash and Cash Equivalents”
which is separately presented in the cash flow statement.The difference arising from the translation of financial statements is presented in “Other Comprehensive Income” under the
shareholders’ equity items in the balance sheet.In case of disposing of an overseas operation and losing control rights the translation difference of the foreign currency statements
related to this overseas operation which is presented under the items of owners' equity in the balance sheet shall be transferred in
full or in proportion to the gains/losses of the period of the disposal of such oversea operation.
11.Financial instrument
Financial instrument is the contract that forms the financial asses for an enterprise and forms the financial liability or equity
instrument for other units.
(1) Recognition and de-recognition of financial instruments
The company recognizes the financial asset or liability when it becomes a party to a financial instrument contract.Financial assets that meet one of the following conditions shall be derecognized:
* The contractual right to receive cash flows from the financial asset is terminated;
* The financial asset has been transferred and meets the conditions for derecognizing the transfer of financial assets as follows.In case the current obligations of a financial liability have been fully or partially relieved the financial liability or a portion thereof
shall be derecognized. In case the company (debtor) signs an agreement with creditors to replace existing financial liabilities by
assuming new financial liabilities and the contractual terms of the new financial liabilities are substantially different from those of
the existing financial liabilities the existing financial liabilities shall be derecognized and the new financial liabilities shall be
recognized simultaneously.The financial assets bought or sold in conventional manners shall be recognized or derecognized on the trading day.
(2) Classification and initial measurement of financial assets
At the initial recognition according to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets the Company classifies the financial assets into the financial assets measured at amortized cost the financial
assets measured at fair value and whose changes are included in other comprehensive income and the financial assets measured at
fair value and whose changes are included in current profit or loss.Financial assets are measured at fair value for initial recognition. For financial assets measured at fair value with changes recognized
in the gains and losses of current period the relevant transaction costs are directly recognized in the gains and losses of current
period; For other categories of financial assets relevant transaction costs are included in the initial recognition amount. The accounts
receivable arising from the sale of products or provision of services which do not include or consider significant financing
components shall be recognized at the expected amount of consideration that the company is entitled to receive for initial recognition.Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured at
fair value and whose changes are included in current profit or loss as financial assets measured at amortized cost:
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* The group’s business model for managing the financial assets is to collect contractual cash flows; and
* The contractual terms of the financial assets stipulate that cash flow generated on a specific date will be only used to pay for the
principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost with the effective interest method. Gains or losses
arising from financial assets which are measured at amortized cost and are not a component of any hedging relationship are included
in current profit or loss when being terminated for recognition amortized by effective interest method or impaired.Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured at
fair value and whose changes are included in current profit or loss as financial assets measured at fair value and whose changes are
included in other comprehensive income:
* The Group's business model for managing the financial assets is targeted at both the collection of contractual cash flows and
the sale of financial assets; and
* The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only used to pay for the
principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment losses or gains and
exchange gains and losses calculated with the effective interest method are included in profit or loss for the period and other gains or
losses are included in other comprehensive income. At the time of derecognition the accumulated gains or losses previously included
in other comprehensive income shall be carried forward from other comprehensive income to current profit or loss.Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are included in other
comprehensive income the Company classifies all other financial assets as financial assets measured at fair value and whose changes
are included in current profit or loss. In the initial recognition in order to eliminate or significantly reduce accounting mismatch the
Company irreversibly designates part of the financial assets that should be measured at amortized cost or measured at fair value and
whose changes are included in the other comprehensive income as the financial assets measured at fair value and whose changes are
included in current profit or loss.After the initial recognition such financial assets are subsequently measured at fair value and the gains or losses (including interests
and dividend income) are included in the current profit and loss unless the financial assets are part of the hedging relationship.The business model of managing financial assets refers to how the company manages financial assets to generate cash flow. The
business model determines whether the source of cash flow for the financial assets managed by the company is to receive contract
cash flow sell financial assets or a combination of both. the company determines the business model for managing financial assets
based on objective facts and specific business objectives determined by key management personnel.The company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow
generated by the relevant financial assets on a specific date is only for the payment of principal and interest based on the outstanding
principal amount. Principal refers to the fair value of financial assets at initial recognition; Interest includes consideration for the time
value of money credit risk associated with outstanding principal amounts for a specific period and other basic lending risks costs
and profits. In addition the company evaluates contract terms that may cause changes in the time distribution or amount of cash
flows in financial asset contracts to determine whether they meet the requirements of the aforementioned contract cash flow
characteristics.
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Only when the company changes its business model for managing financial assets all affected related financial assets shall be
reclassified on the first day of the first reporting period after the change in business model. Otherwise financial assets shall not be
reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
The financial liabilities of the company are classified at initial recognition as financial liabilities measured at fair value through gains
and losses of current period financial liabilities measured at amortized cost. For financial liabilities that are not classified as
measured at fair value and whose changes are recognized in the gains and losses of current period the relevant transaction costs are
included in their initial recognition amount.Financial liabilities measured at fair value through gains and losses
Financial liabilities measured at fair value through gains and losses include trading financial liabilities and financial liabilities
designated at initial recognition as measured at fair value through profit or loss. For such financial liabilities subsequent
measurements are made at fair value and gains or losses resulting from changes in fair value as well as dividends and interest
expenses related to such financial liabilities are recognized in the gains and losses of current period.Financial liabilities measured at amortized cost
Other financial liabilities are measured with effective interest rate method at amortized cost and any gains or losses arising from
derecognition or amortization are recognized in the gains and losses of current period.The distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
* The contractual obligation to deliver cash or other financial assets to other parties.* Contractual obligations to exchange financial assets or liabilities with other parties under potential adverse conditions.* Non-derivative instrument contracts that require or can be settled with the company’s own equity instruments in the future and
the company will deliver a variable number of its own equity instruments according to this contract.* Derivative instrument contracts that require or can be settled with the company’s own equity instruments in the future except for
derivative instrument contracts where a fixed amount of self-equity instruments is exchanged for a fixed amount of cash or other
financial assets.Equity instruments refer to contracts that prove ownership of the remaining equity in assets of a certain enterprise after deducting all
liabilities.If the company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financial assets such
contractual obligation meets the definition of financial liability.If a financial instrument needs to be settled or can be settled with the company’s own equity instruments it is necessary to consider
whether the company’s own equity instruments used to settle the instrument are used as substitutes for cash or other financial assets
or to enable the holder of the instrument to enjoy the remaining equity in the assets after deducting all liabilities from the issuer. If it
is the former the instrument is the financial liability of the company; If it is the latter the instrument is the equity instrument of the
company.
(4) Derivative financial instruments and embedded derivative instruments
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The derivative financial instruments of the company are initially measured at fair value on the date of signing the derivative
transaction contract and are subsequently measured at their fair value. The derivative financial instruments with a positive fair value
are recognized as an asset while those with a negative fair value are recognized as a liability. Any gains or losses arising from
changes in fair value that do not comply with hedge accounting regulations are directly recognized in the gains and losses of current
period.For mixed instruments containing embedded derivative instruments in case the main contract is a financial asset the relevant
provisions for financial asset classification shall apply to the mixed instruments as a whole. If the main contract is not a financial
asset and the mixed instrument is not measured at fair value through gains and losses the embedded derivative instrument is not
closely related to the main contract in terms of economic characteristics and risks and has the same conditions as the embedded
derivative instrument and the separate instrument meets the definition of a derivative instrument the embedded derivative
instrument is separated from the mixed instrument and treated as a separate derivative financial instrument. If it is not possible to
separately measure embedded derivative instruments at the time of acquisition or subsequent balance sheet dates the mixed
instrument as a whole shall be designated as a financial asset or liability measured at fair value with its changes recognized in the
gains and losses of current period.
(5) Fair value of financial instruments
The method for determining the fair value of financial assets and financial liabilities can be found in Note III. 12 of the audit report.
(6) Impairment of financial assets
Based on expected credit losses the company conducts impairment accounting treatment and recognizes loss provisions for the
following items:
Financial assets measured at amortized cost;
Accounts receivable and debt instrument investments measured at fair value with changes recognized in other
comprehensive income;
Contract assets defined in Enterprise Accounting Standard No. 14- Revenue;
Lease receivables;
Financial guarantee contracts (excluding those measured at fair value through profit or loss transfer of financial assets that
do not meet the termination recognition conditions or continued involvement in the transferred financial assets).Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of default. Credit
loss refers to the present value of all cash shortages which is the difference between all contractual cash flows receivable discounted
at the original effective interest rate and expected cash flows received by the company.Considering reasonable and evidence-based information regarding past events current conditions and predictions of future economic
conditions with the risk of default as the weight the company calculates the probability weighted amount of the present value of the
difference between the cash flows receivable under the contract and the expected cash flows to be received and recognize the
expected credit loss.
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The company measures the expected credit losses of financial instruments at different stages separately. If the credit risk of financial
instruments has not significantly increased since initial recognition they are in the first stage and the company measures the loss
provision based on the expected credit losses within the next 12 months; If the credit risk of a financial instrument has significantly
increased since initial recognition but has not yet experienced credit impairment it is in the second stage and the company
measures the provision for losses based on the expected credit losses of the instrument over its entire duration; If a financial
instrument has experienced credit impairment since its initial recognition it is in the third stage and the company measures the
provision for losses based on the expected credit losses of the instrument over its entire duration.For financial instruments with lower credit risk on the balance sheet date the company assumes that their credit risk has not
significantly increased since initial recognition and measures loss provisions based on expected credit losses over the next 12 months.The expected credit loss for the entire expected duration of a financial instrument refers to the expected credit loss caused by all
possible default events that may occur throughout the expected duration of the financial instrument. The expected credit loss within
the next 12 months implies the expected credit loss that may occur due to a default event of a financial instrument within the next 12
months after the balance sheet date (within the expected duration in case the expected maturity of the financial instrument is less than
12 months) which is a part of the expected credit loss for the entire duration).
When measuring expected credit losses the longest term that the company needs to consider is the longest contract term that the
enterprise faces credit risk (including considering renewal options).For financial instruments in the first and second stages as well as those with lower credit risk the company calculates interest
income based on their book balance without deducting impairment provisions and actual interest rate. For financial instruments in the
third stage interest income is calculated based on their book balance minus the amortized cost of impairment provisions and the
actual interest rate.For receivables such as notes receivable accounts receivable and other receivables if the credit risk characteristics of a certain
customer are significantly different from those of other customers in the portfolio or if there is a significant change in the credit risk
characteristics of that customer the company will make individual separate bad debt reserve for that receivable. Except for accounts
receivable with individual bad debt reserve the company classifies accounts receivable into portfolios based on credit risk
characteristics and calculates bad debt reserve on the basis of portfolio.Notes receivable accounts receivable and contract assets
For notes receivable and accounts receivable regardless of whether there are significant financing components the company always
measures its loss provision at an amount equivalent to the expected credit loss for the entire duration.When it is unable to assess the expected credit losses of a single financial asset at a reasonable cost the company categories accounts
receivable and notes receivable into portfolios based on credit risk characteristics calculates expected credit losses on the basis of
portfolio and determines the basis for portfolio and the method for measuring expected credit losses as follows:
A. Notes receivable
Accounts receivable portfolio 1: Bank acceptance bill
Accounts receivable portfolio 2: Commercial acceptance bill
B. Accounts receivable
Accounts receivable portfolio 1: Sales receivables portfolio
Accounts receivable portfolio 2: Specific object portfolio
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For accounts receivable and contract assets classified into portfolio the company based on historical credit loss experience
combined with current conditions and predictions of future economic conditions calculate the expected credit loss by default risk
exposure and the expected credit loss rate for the entire duration
For accounts receivable classified into portfolio the company based on historical credit loss experience combined with current
conditions and predictions of future economic conditions prepare a comparison table between the aging of accounts receivable
and the expected credit loss rate for the entire duration and calculate the expected credit loss. The aging of the accounts receivable
is calculated since the recognition date of accounts receivable.Other receivables
The company categories other receivables into several combinations based on credit risk characteristics calculates expected credit
losses on the basis of portfolio and determines the basis for portfolio as follows:
Other accounts receivable portfolio 1: Expected portfolio of credit risk characteristics
Other accounts receivable portfolio 2: Specific object portfolio
For other receivables classified into portfolio the company based on historical credit loss experience calculate the expected credit
loss by default risk exposure and the expected credit loss rate over the next 12 months or the entire duration. The aging of the
accounts receivable is calculated since the recognition date of other accounts receivable.Debt investment and other debt investments
For debt investments and other debt investments the company calculates expected credit losses based on the nature of the investment
various types of counterparties and risk exposure default risk exposure and expected credit loss rate for the next 12 months or the
entire duration.Assessment of significant increase in credit risk
The company compares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date to determine the relative change in default risk during the expected duration of financial instruments in order to
evaluate whether the credit risk of financial instruments has significantly increased since initial recognition.When determining whether credit risk has significantly increased since initial recognition the company considers reasonable and
evidence-based information including forward-looking information that can be obtained without unnecessary additional costs or
efforts. The information considered by the company includes:
The debtor fails to pay the principal and interest on the due date of the contract;
Serious deterioration of external or internal credit ratings (if any) of financial instruments that have occurred or are
expected to occur;
Serious deterioration of the debtor's operating results that has occurred or is expected to occur;
Existing or anticipated changes in technology market economy or legal environment that will have a significant adverse
impact on the debtor's ability to repay the company.Based on the nature of financial instruments the company evaluates whether credit risk significantly increases based on individual
financial instruments or combinations of financial instruments. When performing assessment based on financial instruments portfolio
the company can classify financial instruments based on common credit risk characteristics such as overdue information and credit
risk ratings.
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If the overdue period exceeds 30 days the company determines that the credit risk of the financial instrument has significantly
increased.Financial assets that have experienced credit impairment
The company assesses on the balance sheet date whether financial assets measured at amortized cost and debt investments measured
at fair value with changes recognized in other comprehensive income have experienced credit impairment. When one or more events
that have an adverse impact on the expected future cash flows of a financial asset occur the financial asset becomes a financial asset
that has experienced credit impairment. Evidence of credit impairment of financial assets includes the following observable
information:
The issuer or debtor encounters significant financial difficulties;
The debtor violates the contract such as paying interest or principal in default or overdue;
Due to economic or contractual considerations related to the financial difficulties of the debtor the company will not make
any concessions to the debtor under any other circumstances;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor have led to the disappearance of the active market for the financial asset.Reporting of provisions for expected credit losses
To reflect the changes in credit risk of financial instruments since initial recognition the company remeasures expected credit losses
on each balance sheet date. The consequent increase or reversal of loss provisions should be recognized as impairment losses or gains
in the gains and losses of current period. For financial assets measured at amortized cost the provision for losses shall offset the
booking amount of the financial asset as stated in the balance sheet; For debt investments measured at fair value with changes
recognized in other comprehensive income the loss provision shall be recognized in other comprehensive income and does not offset
the booking amount of the financial asset.Write-off
If the company no longer reasonably expects the cash flow of the financial asset contract to be fully or partially recovered the book
amount of the financial asset shall be directly written down. This writes down constitutes the derecognition of related financial assets.This situation usually occurs when the company determines that the debtor does not have assets or sources of income to generate
sufficient cash flow to repay the amount to be written down. However according to the company’s procedures for recovering due
payments the financial assets that have been written down may still be affected by execution activities.In case financial assets that have been written down are subsequently recovered the reversed impairment losses shall be booked
into the gains and losses of current period.
(7) Financial asset transfer
Financial asset transfer refers to the transfer or delivery of financial assets to another party (transferee) other than the issuer of the
financial asset.If the company has transferred almost all the risks and rewards of ownership of financial assets to the transferee the financial asset
shall be derecognized; If almost all risks and rewards related to ownership of financial assets are retained the financial asset will not
be derecognized.
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In case the company neither transfers nor retains almost all the risks and rewards related to the ownership of financial assets the
following situations shall be handled separately: if the control over the financial asset is abandoned the financial asset shall be
derecognized and the resulting assets and liabilities shall be recognized; if the control over the financial asset is not abandoned the
relevant financial asset shall be recognized based on the continued involvement of the company in the transferred financial asset and
corresponding liabilities shall be recognized.
(8) Balance-out between the financial assets and liabilities
As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets the
balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition the financial assets and
liabilities are listed in the balance sheet without being balanced out.
12. Note receivable
13. Account receivable
14. Receivable financing
15. Other account receivable
16. Contract asset
17. Inventory
(1) Classification of inventory
Inventory includes raw materials revolving material goods in process goods in transit and work in process-outsourced and so on.
(2) Valuation methods for delivery of inventory
The inventory of the company is valued at actual cost upon acquisition. The raw materials and inventory goods are priced using the
weighted average method or individual valuation method at the time of shipping.
(3) Determination basis and provision method for inventory depreciation reserves
On the balance sheet date inventory is measured at the lower between cost and net realizable value. When its net realizable value is
lower than cost the inventory impairment provision is made.The net realizable value is the amount obtained by subtracting the estimated cost to be incurred until completion estimated sales
expenses and related taxes from the estimated selling price of inventory. When determining the net realizable value of inventory it is
based on conclusive evidence obtained while considering the purpose of holding inventory and the impact of events after the balance
sheet date.The company usually makes inventory impairment provision based on individual inventory items.On the balance sheet date if the factors affecting the previous write-down of inventory value have disappeared the inventory
impairment provision shall be reversed within the originally provisioned amount.
(4) Inventory system
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Inventory system is the perpetual inventory system.
(5) Amortization of low-value consumables and packaging materials
Low-value consumables and packaging materials adopt the method of primary resale;
18.Asset held for sale
(1) Recognition criteria and accounting treatment for non-current assets or disposal groups classified as held-for-sale category
In case the company recovers the carrying value of a non-current asset or a disposal group mainly through selling (including non-
monetary asset exchanges with commercial substance) rather than continuous use such non-current asset or disposal group shall
be classified as held-for-sale category.The above-mentioned non-current assets do not include investment real estate measured subsequently at fair value biological
assets measured at the net amount of fair value minus selling expenses assets formed from employee benefits financial assets
deferred income tax assets and rights arising from insurance contracts.A disposal group refers to a group of assets that are disposed of as a whole through sale or other means in a single transaction as
well as the liabilities directly related to these assets that are transferred in the transaction. Under certain circumstances a disposal
group includes goodwill obtained in a business combination.Non-current assets or disposal groups that meet the following conditions simultaneously shall be classified as held-for-sale
category categories: In accordance with the practice of selling such assets or disposal groups in similar transactions the non-
current assets or disposal groups can be sold immediately in their current state; the sale is highly likely to occur that is a
resolution has been made on a sales plan and a firm purchase commitment has been obtained and it is expected that the sale will
be completed within one year. In the case of losing control over a subsidiary due to reasons such as the sale of investment in the
subsidiary regardless of whether the company retains part of the equity investment after the sale when the investment in the
subsidiary to be sold meets the classification conditions for the held-for-sale category the investment in the subsidiary as a whole
shall be classified as the held-for-sale category in the individual financial statements and all the assets and liabilities of the
subsidiary shall be classified as the held-for-sale category in the consolidated financial statements.When initially measuring or re-measuring a non-current asset or disposal group held-for-sale at the balance sheet date the
difference between the carrying value and the net amount of fair value minus selling expenses shall be recognized as an asset
impairment loss. For the amount of asset impairment loss recognized for a disposal group held-for-sale the carrying value of the
goodwill in the disposal group shall be offset first and then the carrying values of the various non-current assets in the disposal
group shall be offset proportionally according to the proportion of their respective carrying values.If the net amount of the fair value of a non-current asset or disposal group held-for-sale minus selling expenses increases at a
subsequent balance sheet date the previously written-down amount shall be restored and reversed within the amount of asset
impairment loss recognized after being classified as held-for-sale category and the reversed amount shall be included in the
current gains/losses. The written-down carrying value of the goodwill shall not be reversed.The non-current assets held-for-sale and the assets in the disposal group held-for-sale shall not be depreciated or amortized; the
interest and other expenses of the liabilities in the disposal group held-for-sale shall continue to be recognized. For all or part of
the investment in associated enterprise or joint venture classified as held-for-sale category the equity method of accounting shall
be suspended for the part classified as held-for-sale and the retained part not classified as held-for-sale category shall continue to
be accounted with the equity method; in case the company loses significant influence over the associated enterprise or joint
venture due to sale the equity method of accounting shall be suspended.If a certain non-current asset or disposal group is classified as held-for-sale category but later no longer meets the classification
conditions for held-for-sale category the company shall stop classifying it as held-for-sale category and measure it at the lower of
the following two amounts:
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* The carrying value of the asset or disposal group before it was classified as held-for-sale category adjusted according to the
depreciation amortization or impairment that should have been recognized assuming it had not been classified as held-for-sale
category;
* The recoverable amount.
(2) Recognition criteria for discontinued operations
Discontinued operation refers to a separately distinguishable component that has been disposed of by the company or classified as
held-for-sale category by the company and meets one of the following conditions:
* The component represents an independent major business or a separate major operating region.* The component is part of a related plan for the disposal of an independent major business or a separate major operating region.* The component is a subsidiary acquired specifically for resale.
(3) Presentation
The company presents the non-current assets held-for-sale or the assets in the disposal group held-for-sale in the balance sheet in
“Assets held-for-sale” and presents the liabilities in the disposal group held-for-sale in “Liabilities held-for-sale”.The company presents the gains/losses from continuing operations and the gains/losses from discontinued operations separately in
the income statement. For non-current assets or disposal groups held-for-sale that do not meet the definition of discontinued
operations their impairment losses reversal amounts and disposal gains/losses are presented as the gains/losses from continuing
operations. The impairment losses reversal amounts and other operating gains/losses as well as disposal gains/losses of
discontinued operations are presented as gains/losses from discontinued operations.A disposal group that is intended to be taken out of use rather than sold and meets the conditions of the relevant component in the
definition of discontinued operations shall be presented as a discontinued operation as of the date of its cessation of use.For the discontinued operations presented in the current period in the current financial statements the information that was
originally presented as gains/losses from continuing operations is re-presented as gains/losses from discontinued operations for the
comparable accounting period. If a discontinued operation no longer meets the classification conditions for the held-for-sale
category in the current financial statements the information that was originally presented as gains/losses from discontinued
operations is re-presented as gains/losses from continuing operations for the comparable accounting period.
19.Creditors’ investment
20.Other creditors’ investment
21.Long-term accounts receivable
22.Long-term equity investment
Long term equity investments include equity investments in subsidiaries joint ventures and associated enterprises. In the joint
venture the company is capable of exerting significant influence on the invested entity.
(1) Determination of initial investment cost
Long term equity investments formed from enterprise merge: For long-term equity investments obtained through merge of enterprise
under the same control the investment cost shall be determined based on the share of the book value of the the shareholders’ equity
of the merged party in the consolidated financial statements of the final controller on the merger date; The long-term equity
investment obtained through the merger of enterprises not under the same control shall be recognized as the investment cost of the
long-term equity investment based on the merger cost.Long-term equity investments obtained through other means: For the long-term equity investments obtained by paying cash the
actual purchase price paid shall be the initial investment cost; For long-term equity investments obtained through the issuance of
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equity securities the fair value of the issued equity securities shall be the initial investment cost.
(2) Subsequent measurement and recognition methods of gains and losses
Investments in subsidiaries are measured with the cost method unless the investment meets the conditions for holding for sale;
Investments in associated enterprises and joint ventures are measured with equity method.For the long-term equity investments measured with cost method except for cash dividends or profits declared but not yet distributed
in the actual payment or consideration received at the time of investment the cash dividends or profits declared by the investee shall
be recognized as investment income and booked into gains and losses in current period.For long-term equity investments measured with the equity method if the initial investment cost is greater than the fair value of
identifiable net assets of the invested entity held at the time of investment the investment cost of the long-term equity investment
shall not be adjusted; If the initial investment cost is less than the fair value of the identifiable net assets of the invested entity held
at the time of investment the book value of the long-term equity investment shall be adjusted and the difference shall be recognized
in the gains and losses of the investment period.When measured with equity method investment income and other comprehensive income shall be recognized separately based on
the share of net gains and losses and other comprehensive income that should be enjoyed or shared by the invested entity and the
book value of long-term equity investments shall be adjusted; The book value of long-term equity investments shall be reduced
correspondingly in terms of the portion that should be enjoyed based on the profits or cash dividends declared by the invested entity;
Other changes in shareholders’ equity of the invested entity except for net gains and losses other comprehensive income and profit
distribution shall adjust the book value of long-term equity investments and be booked into capital reserves (other capital reserves).Based on the fair value of identifiable assets of the invested entity at the time of acquisition of the investment the share of net gains
and losses that should be enjoyed in the invested entity shall be adjusted according to the accounting policies and accounting periods
of the company before recognition.If significant influence or joint control can be exerted on the invested entity due to additional investment or other reasons but does
not constituting control on the conversion date the initial investment cost measured again with equity method shall be the sum of the
fair value of the original equity and the additional investment cost. If the original equity is classified as a non-trading equity
instrument investment measured at fair value with changes recognized in other comprehensive income the cumulative fair value
changes related that were originally recognized in other comprehensive income shall be transferred to retained income when the
equity method is used for accounting.If the joint control or significant impact on the invested entity is lost due to the disposal of some equity investments or other reasons
the remaining equity after disposal shall be subject to accounting treatment in accordance with Accounting Standards for Enterprises
No. 22- Recognition and Measurement of Financial Instruments on the date of loss of joint control or significant impact and the
difference between fair value and book value shall be recognized in gains and losses in current period. Other comprehensive income
recognized for equity investments with equity method shall be measured on the same basis as the direct disposal of relevant assets or
liabilities by the invested entity when the equity method is terminated; Other changes in shareholders' equity related to the original
equity investment are transferred to gains and losses in current period.If control over the investee is lost due to the disposal of a portion of equity investment or other reasons and the remaining equity
after disposal can exercise joint control or significant influence over the investee it shall be measured with equity method and the
remaining equity shall be deemed to be adjusted with the equity method from the time of acquisition; If the remaining equity after
disposal cannot exercise joint control or have a significant impact on the invested entity it shall be measured in accordance with the
relevant provisions of Enterprise Accounting Standard No. 22- Recognition and Measurement of Financial Instruments. The
difference between the fair value and the book value on the date of loss of control shall be recognized in gains and losses in current
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period.If the shareholding ratio of the Company decreases due to capital increase by other investors and the company loses control over the
invested entity but is able to exercise joint control or exert significant influence on the invested entity the Company shall recognize
the rising net assets of the invested entity held by the company due to capital increase and share expansion according to the new
shareholding ratio and the difference between the original book value of the long-term equity investment corresponding to the
decrease in shareholding ratio that should be carried forward shall be included in the current gains and losses and then it shall be
adjusted in terms of the new shareholding ratio just as it is measured with equity method when the investment is obtained.The unrealized internal transaction gains and losses between the Company and its associated enterprises and joint ventures shall be
calculated in terms of the proportion of shareholding and recognized as investment gains and losses on the basis of offsetting.However the unrealized internal transaction losses incurred by the Company and the invested entity which is the impairment losses
of the transferred assets shall not be offset.
(3) Criteria of joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant activities of such
arrangement must be decided by unanimously agreement from parties who share control. When determining whether there is joint
control firstly judge whether all the participants or participant group have controlling over such arrangement as a group or not and
then judge whether the decision-making for such arrangement are agreed unanimity by the participants or not. If all participants or a
group of participants must act together to determine the relevant activities of a certain arrangement it is considered that all
participants or a group of participants collectively control the arrangement; If there are two or more portfolios of participants to
collectively control a certain arrangement it does not constitute joint control. When determining whether there is joint control the
protective rights enjoyed are not considered.Significant influence is the power of the Company to participate in the financial and operating policy decisions of an invested party
but to fail to control or joint control the formulation of such policies together with other parties. When determining whether
significant influence can be exerted on the invested entity the potential factors of voting power as current convertible bonds and
current executable warrant of the invested party held by investors and other parties shall be considered.When the company directly or indirectly owns more than 20% (inclusive) but less than 50% of the voting shares of the invested
entity through its subsidiaries it is generally considered to have a significant impact on the invested entity unless there is clear
evidence that it cannot participate in the production and operation decisions of the invested entity and does not form a significant
impact; When the company owns less than 20% (exclusive) of the voting shares of the invested entity it is generally not considered
to have a significant impact on the invested entity unless there is clear evidence that it can participate in the production and operation
decisions of the invested unit and form a significant impact.
(4) Equity investments held-for-sale
In case all or part of the equity investments in associated enterprise or joint venture are classified as assets held-for-sale the
relevant accounting treatments are shown in Note III.14.The remaining equity investments that have not been classified as assets held-for-sale will be accounted with the equity method.If the equity investments in associated enterprise or joint venture that have been classified as assets held-for-sale no longer meet
the classification conditions for assets held-for-sale retrospective adjustment shall be made with the equity method starting from
the date when they were classified as assets held-for-sale.
(5) Impairment testing methods and impairment provision methods
Refer to Note III. 23 of auditor’s report for the method for making asset impairment for investments in subsidiaries associated
enterprises and joint ventures.
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23. Investment real estate
Measurement model for investment real estate
Measured with cost method
Depreciation or amortization methods
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation or both. The company’s
investment real estate includes leased land use rights land use rights held and prepared for transfer after appreciation and leased
buildings.The company's investment real estate is initially measured at cost at the time of acquisition and depreciated or amortized on a regular
basis in accordance with relevant regulations for fixed or intangible assets.For investment properties that are subsequently measured with cost model the method for impairment of assets is shown in Note III.
24.
The difference between the disposal income from sale transfer scrapping or damage of investment real estate after deducting its
book value and related taxes and fees is recognized in gains and losses in current period.
24. Fixed assets
(1) Recognition conditions
The company’s fixed assets refer to tangible assets held for the production of goods provision of services rental or business
management with a useful life exceeding one accounting year.Fixed assets can only be recognized when the economic benefits related to the fixed asset are likely to flow into the enterprise and the
cost of the fixed asset can be reliably measured.The company’s fixed assets are initially measured at their actual cost at the time of acquisition.Subsequent expenses related to fixed assets are recognized as fixed asset costs when the economic benefits related to them are likely
to flow into the company and their costs can be reliably measured; The daily repair expenses of fixed assets that do not meet the
subsequent expenditure conditions for capitalization of fixed assets shall be recognized in gains and losses in current period or in the
cost of related assets according to the beneficiaries at the time of occurrence. For the replaced part its book value shall be terminated.
(2) Depreciation method
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Category Method Years of Scrap value Yearly depreciationdepreciation rate rate
House and buildings
Production buildings Straight-linedepreciation 20-35 5.00 4.75-2.71
Non-production buildings Straight-linedepreciation 20-40 5.00 4.75-2.38
Temporary dormitory and simple room Straight-line
etc. depreciation 5-15 5.00 19.00-6.33
Gas storage bin Straight-linedepreciation 20 5.00 4.75
Silo Straight-linedepreciation 50 5.00 1.90
Wharf and supporting facilities Straight-linedepreciation 50 5.00 1.90
Machinery equipment Straight-linedepreciation
Other machinery equipment Straight-linedepreciation 10-20 5.00 9.50-4.75
Warehouse transmission equipment Straight-linedepreciation 20 5.00 4.75
Transport equipment Straight-linedepreciation 3-10 5.00 31.67-9.50
Electronic equipment and others Straight-linedepreciation 2-10 5.00 47.50-9.50
Among them for fixed assets with impairment provision the cumulative amount of impairment provision of fixed assets should also
be deducted to determine the depreciation rate.
(1) The methods for impairment testing of fixed assets and the methods for making impairment provision are described in Note III.
24.
(2) At the end of each year the company reviews the useful lives estimated residual values and depreciation methods of its fixed
assets.If there is a difference between the expected useful life and the original estimate the useful life of the fixed asset shall be adjusted;
if there is a difference between the estimated residual value and the original estimate the estimated residual value shall be adjusted.
(3) Disposal of fixed assets
When a fixed asset is disposed of or it is expected that no economic benefits arise from its use or disposal such fixed asset shall
be de-recognized. The amount obtained from the disposal of fixed asset (including sales transfers scrapping or damage) after
deducting its carrying value and relevant taxes and fees shall be included in the current gains/losses.
25. Construction in progress
The cost of construction in progress of the company is determined based on actual project expenses including necessary project
expenses incurred during the construction period borrowing costs that should be capitalized before the project reaches its intended
usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches its intended usable state.The method for impairment of assets for construction in progress can be found in Note III.24 of the auditor’s report.
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26. Borrowing expenses
(1) Recognition of the borrowing expenses capitalization
The borrowing costs incurred by the company which can be directly attributed to the acquisition construction or production of assets
that meet the capitalization conditions shall be capitalized and included in the relevant asset costs; Other borrowing costs are
recognized as expenses based on their amount at the time of occurrence and included in the current profit and loss. The borrowing
costs meeting the following conditions simultaneously shall be capitalized:
* Asset expenses have already occurred including expenses incurred in the form of cash payments transfer of non-cash assets or
assuming interest bearing debts for the purchase construction or production of assets that meet capitalization conditions;
* The borrowing costs have already been incurred;
* The necessary purchase construction or production activities to bring the assets to their intended usable or saleable state have
already begun.
(2) During the capitalization period of borrowing costs
When assets purchased or produced by the company that meet capitalization conditions reach the intended usable or saleable state
the capitalization of borrowing costs shall be ceased. The borrowing costs incurred after the assets that meet the capitalization
conditions reach their intended usable or saleable status are recognized as expenses based on their amount at the time of occurrence
and recognized in gains and losses in current period.If assets that meet the capitalization criteria experience abnormal interruptions during the purchase construction or production
process and the interruption lasts for more than three consecutive months the capitalization of borrowing costs shall be suspended;
The borrowing costs during the normal interruption period continue to be capitalized.
(3) The capitalization rate of borrowing costs and the calculation method of capitalization amount
The actual interest expenses incurred in the current period of specialized borrowing minus the interest income obtained from
depositing unused borrowing funds into banks or the investment income obtained from temporary investments shall be capitalized;
The capitalization amount of general borrowing is determined by multiplying the weighted average of the accumulated asset
expenditures that exceed the portion of specialized borrowing by the capitalization rate of the general borrowing used. The
capitalization rate is determined based on the weighted average interest rate of general borrowing.During the capitalization period all exchange differences on foreign currency borrowings shall be capitalized; The exchange
difference of foreign currency general borrowings is recognized in gains and losses in current period.
27. Biological assets
(1) Criteria for determining biological assets
Biological assets refer to assets composed of living animals and plants. Biological assets that simultaneously meet the following
conditions shall be recognized:
* Asset expenses have already occurred including expenses incurred in the form of cash payments transfer of non-cash assets or
assuming interest bearing debts for the purchase construction or production of assets that meet capitalization conditions;
* The borrowing costs have already been incurred;
* The necessary purchase construction or production activities to bring the assets to their intended usable or saleable state have
134深圳市深粮控股股份有限公司2024年年度报告全文
already begun.
(2) Classification of biological assets
The biological assets of the company include productive biological assets.* Productive biological assets
The biological assets of the company are productive biological assets. Productive biological assets refer to biological assets held for
the purpose of producing agricultural products providing services or renting. Productive biological assets are initially measured at
cost. Subsequent expenses incurred on productive biological assets after achieving the intended production and operation objectives
are recognized in gains and losses in current period.The management and feeding expenses incurred after the closure or achievement of the intended production and operation objectives
of productive biological assets are presented in the current gains/losses.The main productive biological assets of the company are tea trees. For productive biological assets that achieve the predetermined
production and operation objectives depreciation is made with the straight-line method. The useful life is determined as the
remaining life of land use after deducting the immature period of tea trees (5 years) with a residual value rate of 5.00%. After
deducting residual value from the estimated useful life of biological assets the depreciation rate is determined as follows:
the company shall review the useful life estimated net residual value and depreciation method of productive biological assets at least
at the end of the year. Any changes shall be treated as changes in accounting estimates.The difference between the disposal income from the sale inventory loss death or damage of productive biological assets after
deducting their book value and related taxes and fees is recognized in gains and losses in current period.
(3) Treatment of impairment of biological assets
If the net realizable value of consumable biological assets is lower than their book value a impairment provision of biological assets
shall be made in terms of the difference between the net realizable value and the book value and shall be booked into gains and
losses in current period. If the factors affecting the impairment of consumable biological assets have disappeared the write-down
amount should be restored and reversed within the original impairment provision and the reversed amount should be recognized in
gains and losses in current period.The method for impairment of productive biological assets can be found in Note III. 24 of the auditor’s report.No impairment provision is made for public welfare biological assets.
28. Oil and gas assets
29. Intangible assets
(1) Service life and its determination basis estimated situation amortization method or review procedure
The intangible assets of the company include land use rights forest use rights trademark use rights store operation rights software
use rights patents and others.Intangible assets are initially measured at cost and analyzed for their useful life upon acquisition. For intangible assets with a limited
useful life the amortization method that reflects the expected realization of economic benefits related to the asset shall be adopted
from the time when the intangible asset is available for use and shall be amortized within the expected useful life; If the expected
implementation method cannot be reliably determined the straight-line method shall be used for amortization; Intangible assets with
135深圳市深粮控股股份有限公司2024年年度报告全文
uncertain useful lives are not amortized.The amortization method for intangible assets with limited service life is as follows:
Estimation of the service life of intangible assets with limited service life
Item Useful life Basis Amortizationmethod Note
Land use right Amortized the actual rest of life after certificate of Certificate of land use Straight-line
land use right obtained right method
Forest tree use right Service life arranged Protocol agreement Straight-line
method
Trademark use 10 years Actual situation of the Straight-line
right Company method
Shop management Service life arranged Protocol agreement Straight-line
right method
Software use right 5-8 years Protocol agreement Straight-line
method
Patents and others 20 years Actual situation of the Straight-line
Company method
At the end of each fiscal year the company reviews the useful life and amortization method of intangible assets with limited useful
lives. If there are differences from previous estimates the original estimates will be adjusted and treated as changes in accounting
estimates.If it is expected that a certain intangible asset will no longer bring future economic benefits to the enterprise on the balance sheet date
the book value of the intangible asset shall be fully transferred to the gains and profits of current period.The impairment method for intangible assets can be found in Note III.24 of the auditor’s report.
(2) The collection scope and related accounting treatment methods of R&D expenditure
The R&D expenses of the company are directly related to our R&D activities including employee salaries direct investment
expenses depreciation expenses and long-term deferred expenses design expenses equipment debugging expenses intangible asset
amortization expenses and other expenses. The salaries of R&D personnel are allocated to R&D expenses based on project working
hours. The sharing of equipment production lines and venues between R&D activities and other production and operation activities
is allocated as R&D expenses based on the proportion of working hours and area.The company distinguishes the expenses for internal R&D projects into research stage expenses and development stage expenses.The expenses incurred during the research phase are recognized in the gains and profits of current period when incurred.Expenditures during the development phase can only be capitalized if they meet the following conditions: completing the intangible
asset to make it technically feasible for use or sale; Has the intention to complete the intangible asset and use or sell it; The ways in
which intangible assets generate economic benefits including the ability to prove that the products produced with the intangible asset
or the intangible asset are marketable and the ability to prove its usefulness if the intangible asset will be used internally; Have
sufficient technical financial and other resources to support the development of the intangible asset and the ability to use or sell the
intangible asset; The expenses attributable to the development stage of the intangible asset can be reliably measured. Development
expenses that do not meet the above conditions are recognized in the gains and profits of current period.After meeting the above conditions and conducting technical and economic feasibility studies the company's R&D project enters the
development stage after being approved.The capitalized expenses during the development stage are listed as development expenses on the balance sheet and are converted
into intangible assets from the date the project reaches its intended use.
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30. Impairment of long-term assets
The impairment of assets such as long-term equity investments in subsidiaries associated enterprises and joint ventures investment
real estate fixed assets construction in progress productive biological assets measured with cost models right-of-use assets
intangible assets and goodwill (excluding inventory deferred income tax assets and financial assets) shall be determined with the
following method:
On the balance sheet date it is determined whether there are any signs of possible impairment of assets. If there are signs of
impairment the company will estimate its recoverable amount and conduct impairment testing. Impairment tests are conducted
annually for goodwill intangible assets with uncertain useful lives and intangible assets that have not yet reached a usable state
regardless of whether there are signs of impairment resulting from business mergers.The recoverable amount is determined based on the higher of the net amount after deducting disposal expenses from the fair value of
the asset and the present value of the expected future cash flows of the asset. The company estimates its recoverable amount based on
individual assets; If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset group shall
be determined based on the asset group to which the asset belongs. The recognition of an asset group is based on whether the main
cash inflows generated by the asset group are independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the company will write down its book value to
the recoverable amount and the written down amount will be recognized in the gains and profits of current period while making
corresponding provisions for asset impairment.As for the impairment test of goodwill the book value of goodwill formed by enterprise merger shall be allocated to the relevant
asset group in a reasonable manner from the date of purchase; If it is difficult to allocate to the relevant asset groups allocate it to the
relevant asset group portfolio. The relevant asset groups or asset group portfolio refer to asset groups or asset group portfolio that can
benefit from the synergistic effects of enterprise mergers and are not larger than the reporting branches determined by the company.When conducting impairment testing if there are signs of impairment in asset groups or asset group portfolios related to goodwill
the first step is to conduct impairment testing on asset groups or asset group portfolio that do not include goodwill calculate the
recoverable amount and recognize the corresponding impairment losses. Then conduct impairment tests on asset groups or asset
group combinations containing goodwill and compare their book value with their recoverable amount. If the recoverable amount is
lower than the book value recognize impairment losses on goodwill.Once asset impairment losses are recognized they will not be reversed in future accounting periods.
31. Long term deferred expenses
The long-term deferred expenses incurred by the company are valued at actual cost and amortized on an average over the expected
benefit period. For long-term deferred expenses that cannot benefit future accounting periods their amortized value is fully
recognized in the gains and profits of current period.
32. Contract liabilities
33. Employee compensation
(1) Accounting treatment methods for short-term compensation
During the accounting period when the employees provider service to the company the actual employee wages bonuses medical
insurance premiums work-related injury insurance premiums maternity insurance premiums and housing provident fund paid to
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employees according to prescribed standards and proportions are recognized as liabilities and included in the gains and profits of
current period or related asset costs.
(2) Accounting treatment methods for post employment benefits
The post employment welfare plan includes a defined contribution plan and a defined benefit plan. In the defined contribution plan
the company no longer bears further payment obligations after paying fixed fees to an independent fund; A defined benefit plan
refers to a post employment welfare plan other than a defined contribution plan.Defined contribution plans
Include basic pension insurance unemployment insurance and enterprise annuity plans.During the accounting period when employees provide services the amount of contributions calculated based on the defined
contribution plan is recognized as liability and included in the gains or losses of current period or related asset costs.Defined benefit plans
For defined benefit plans the actuarial valuation is conducted by an independent actuary on the annual balance sheet date and the
cost of providing benefits is determined with the expected cumulative benefit unit method. The employee compensation cost
resulting from the defined benefit plan set by the company includes the following components:
* Service costs including current service costs past service costs and settlement gains or losses. Among them the current service
cost refers to the increase in the present value of obligations of the defined benefit plan caused by the provision of services by
employees in the current period; The past service cost refers to the increase or decrease in the present value of the defined benefit
plan obligations related to employee services in the previous period caused by the modification of the defined benefit plan.* The net interest on net liabilities or net assets of a defined benefit plan including interest income on assets of defined benefit plan
interest expenses on obligations of defined benefit plan and interest affected by asset cap.* The changes resulting from remeasuring the net liabilities or net assets of the defined benefit plan.Unless other accounting standards require or allow employee welfare costs to be included in asset costs the company will include
items * and* in the gains and profits of current period; The* is included in other comprehensive income and will not be reversed
to profit or loss in subsequent accounting periods. When the original defined benefit plan is terminated all the portion originally
included in other comprehensive income will be carried over to undistributed profits within the scope of equity.
(3) Accounting treatment methods for termination benefits
If the company provides termination benefits to employees the employee compensation liability arising from termination benefits
shall be recognized and included in the gains and profits of current period as soon as possible when the company cannot unilaterally
withdraw the termination benefits provided due to the termination of labor relations plan or layoff proposal; When the company
confirms the costs or expenses related to restructuring involving payment of termination benefits.For those who implement an internal retirement plan for employees economic compensation before the official retirement date is
considered as termination benefits. During the period from the date the employee stops providing services to the normal retirement
date the salary and social insurance premiums to be paid to the retired employee shall be included in the current profit and loss in a
lump sum. Economic compensation after the official retirement date (such as normal pension) shall be treated as post employment
benefits.
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(4) Accounting treatment method for other long-term employee benefits
Other long-term employee benefits provided by the company to employees that meet the conditions for defined contribution plan
shall be handled in accordance with the relevant provisions on setting up a defined contribution plan mentioned above. Those which
meet conditions for defined benefit plan shall be treated in accordance with the relevant provisions on the set benefit plan mentioned
above. However “changes arising from remeasuring the net liabilities or net assets of the set benefit plan” in the relevant employee
compensation shall be included in the current profit and loss or related asset cost.
34. Accrual liability
The Company will recognize the obligations related to contingencies as expected liabilities when they meet the following conditions:
(1) The responsibility is a current responsibility undertaken by the Company;
(2) Fulfilling of the responsibility may lead to financial benefit outflow;
(3) The responsibility can be measured reliably for its value.
Accrual liabilities are initially measured based on the best estimate of the expenses required to fulfill current obligations taking into
account factors such as risk uncertainty and time value of money related to contingencies. If the time value of currency has a
significant impact the best estimate is determined by discounting the relevant future cash outflows. The company reviews the book
value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate.If all or part of the expenses required to settle the confirmed accrual liabilities are expected to be compensated by a third party or
other parties the compensation amount can only be separately recognized as an asset when it is basically certain that it will be
received. The confirmed compensation amount does not exceed the book value of the recognized liability.
35.Share-based payment
36. Other financial instrument of preferred stocks and perpetual bond
37. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by business type
(1) General principles
The company recognizes revenue when the customer acquires control of the relevant goods or services in accordance with the
contractual obligations.If the contract contains two or more performance obligations the company shall on the commencement date of the contract allocate
the transaction price to each individual performance obligation based on the relative proportion of the individual selling price of the
goods or services promised by each individual performance obligation and measure revenue based on the transaction price allocated
to each individual performance obligation.If one of the following conditions is met it is to fulfill the performance obligation within a certain period of time; Otherwise it is to
fulfil the performance obligation at a certain point of time:
* The customer obtains and consumes the economic benefits brought by the company's performance at the same time as the
company fulfills its obligations.
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* Customers are able to control the goods under construction during the fulfillment process of the company.* The goods produced by the company during the performance process have irreplaceable uses and the company has the right to
collect payments for the cumulative completed performance portion throughout the entire contract period.For performance obligations performed during a certain period of time the company recognizes revenue based on the progress of
performance during that period. In case the progress of performance cannot be reasonably determined when the costs already
incurred by the company are expected to be compensated revenue shall be recognized in terms of the amount of costs already
incurred until the progress of performance can be reasonably determined.For performance obligations performed at a certain point of time the company recognizes revenue at the point when the customer
obtains control of the relevant goods or services. When determining whether a customer has acquired control over goods or services
the company will consider the following signs:
* The company has the current payment right for the goods or services which means that the customer has a current payment
obligation for the goods.* The company has transferred the legal ownership of the product to the customer that is the customer already has legal ownership
of the product.* The company has transferred the physical ownership of the product to the customer which means the customer has already taken
possession of the product.* The company has transferred the main risks and rewards of ownership of the product to the customer that is the customer has
acquired the main risks and rewards of ownership of the product.* The customer has accepted the product or service.* Other signs indicating that the customer has obtained control over the product.
(2) Specific methods
* Grain and oil trade and processing business
The revenue from sales of goods is recognized after the goods sold domestically have been delivered and meet the relevant terms and
conditions stipulated in the contract;
The revenue of export sales is recognized after the goods have been shipped and declared and meet the relevant terms and conditions
stipulated in the contract.* Grain and oil storage logistics and services
Dynamic grain and oil reserves and rotation services: recognize income when relevant labor activities occur. Specifically the income
from grain and oil reserves is calculated and recognized monthly based on the actual amount of grain and oil reserves and the reserve
prices specified in the Shenzhen Municipal Government Grain Reserve Cost Contract Operating Regulations and the Shenzhen
Municipal Edible Vegetable Oil Government Reserve Cost Contract Operating Regulations.The warehousing logistics and transshipment business including services such as warehousing loading onto ships direct pick-up
fumigation and transferring goods between warehouses is recognized by calculating according to the charging time and method
stipulated in the contract or agreement.* Food beverage and tea processing
140深圳市深粮控股股份有限公司2024年年度报告全文
The company shall recognize revenue when it has delivered the products to the buyers as agreed in the contract and obtained the
buyers' receipt confirmation the buyers have obtained the control of the products the payment has been received or the payment
voucher has been obtained and the relevant economic benefits are highly likely to flow in.* Leasing business
For property leasing services the realization of revenue shall be recognized on the date when the lessee is due to pay the rent as
specified in the transaction contract or agreement.* Other businesses
The revenue from property management services shall be recognized when the relevant labor services occur and the payment is
received simultaneously or the voucher for receiving the payment is obtained.The revenue of other businesses shall be measured and recognized according to the charging time and method stipulated in the
contract or agreement.In case similar businesses adopt different business models different revenue recognition methods and measurement methods will be
involved.
38. Contract cost
The contract cost includes the incremental cost incurred to obtain the contract and the contract performance cost.The incremental cost incurred to obtain the contract refers to the cost that the company would not have incurred without obtaining the
contract (such as sales commission). The cost which is expected to be recovered will be recognized by the company as a contract
acquisition cost and as an asset. Except for the expected incremental costs that can be recovered other expenses incurred by the
company to obtain the contract shall be booked in the gains and profits of current period.If the cost incurred in fulfilling a contract does not fall within the scope of accounting standards for other enterprises such as
inventory and meets the following conditions simultaneously the company recognizes it as a contract performance cost as an asset:
* The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses (or
similar expenses) costs clearly borne by the customer and other costs incurred solely due to the contract;
* This cost increases the resources that the company will use in the future to fulfill its contractual obligations;
* The cost is expected to be recovered.The assets recognized for contract acquisition costs and the assets recognized for contract performance costs (hereinafter referred to
as “assets related to contract costs”) are amortized on the same basis as the recognition of goods or services revenue related to the
assets and are booked in the gains and profits of current period. If the amortization period does not exceed one year it shall be
recognized in the current profit and loss when it occurs.In case the book value of assets related to contract costs exceeds the difference between the following two items the company makes
impairment provisions for the excess and recognizes it as an asset impairment loss:
* The expected remaining consideration that the company can obtain for the transfer of goods or services related to the asset;
* The estimated cost to be incurred for the transfer of the relevant goods or services.
141深圳市深粮控股股份有限公司2024年年度报告全文
39. Government grant
Government grant is recognized when they meet the conditions attached to government grants and can be received.Government grant as monetary assets shall be measured at the amount received or receivable. The government grants as non-
monetary assets shall be measured at fair value; If the fair value cannot be reliably obtained it shall be measured at a nominal amount
of 1 yuan.Asset-related government subsidies refer to government grants obtained by the company for the purchase construction or other
formation of long-term assets; Others are income-related government grants.For those whose targets are not clearly specified in government documents and form long-term assets the government grant
corresponding to the asset value shall be regarded as asset-related government grants and the remaining part shall be regarded as
income-related government grants; In case it is difficult to make distinguishing the government grants as a whole shall be regarded
as income-related government grants.Asset-related government grants are recognized as deferred income and booked in gains and losses in a reasonable and systematic
manner over the useful life of the relevant assets. Income-related government subsidies which are used to compensate related costs or
losses that have already occurred shall be included in the gains and profits of current period; The income-related government
subsidies which are used to compensate related costs or losses in future periods shall be recognized in deferred income and
recognized in gains and losses of current period during the recognition period of related costs or losses. Government grants measured
at nominal amounts are directly recognized in the gains and profits of current period. The company adopts a consistent approach for
handling the same or similar government subsidy businesses.Government grants related to daily activities are recognized in other income based on the essence of economic transactions.Government subsidies unrelated to daily activities are included in non- operating income.When recognized government subsidies need to be returned in case the book value of the relevant assets is offset at the initial
recognition the book value of the assets shall be adjusted; If there is a balance of related deferred income it shall offset the book
balance of related deferred income and the excess shall be recognized in the gains and profits of current period; In other situations it
shall be directly included in the gains and profits of current period.For the policy preferential loans and interest subsidies obtained by the company in case the finance department allocates interest
subsidy to the lending bank the company will use the actual received loan amount as the book value of the loan and calculate the
relevant loan costs based on the loan principal and the policy preferential interest rate in case the finance department directly
allocates interest subsidy to the company the company will offset the relevant borrowing costs with the corresponding interest
subsidy.
40. Deferred income tax assets/deferred income tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill arising from enterprise merge or
deferred income tax related to transactions or events directly recognized in shareholders’ equity they are all recognized as income
tax expenses in gains and losses of current period.The deferred income tax is recognized with the balance sheet liability method and in terms of the temporary difference between the
book value of assets and liabilities on the balance sheet date and the tax basis.All taxable temporary differences are recognized as related deferred income tax liabilities unless the taxable temporary differences
arise in the following transactions:
142深圳市深粮控股股份有限公司2024年年度报告全文
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions with the following
characteristics: the transaction is not a business merger and does not affect accounting profits or taxable income at the time of the
transaction (except for individual transactions where the initially recognized assets and liabilities result in equal taxable temporary
differences and deductible temporary differences);
(2) For taxable temporary differences related to investments in subsidiaries joint ventures and associated enterprises the timing of
the reversal of such temporary differences can be controlled and it is likely that they will not be reversed in the foreseeable future.For deductible temporary differences deductible losses that can be carried forward to future years and tax deductions the company
recognizes deferred tax assets arising from them to the extent of future taxable income that is likely to be obtained for offsetting
deductible temporary differences deductible losses and tax deductions unless the deductible temporary differences arise in the
following transactions:
(1) This transaction is not a enterprise merger and it does not affect accounting profits or taxable income at the time of transaction
(except for individual transactions where initially recognized assets and liabilities result in equal taxable temporary differences and
deductible temporary differences);
(2) For deductible temporary differences related to investments in subsidiaries joint ventures and associated enterprises if the
following conditions are met simultaneously the corresponding deferred income tax assets shall be recognized: temporary
differences are likely to be reversed in the foreseeable future and taxable income that can be used to offset deductible temporary
differences is likely to be obtained in the future.On the balance sheet date the company measures deferred income tax assets and liabilities at the applicable tax rate during the
expected period of asset recovery or liability settlement and reflects the income tax impact of the expected method of asset recovery
or liability settlement on the balance sheet date.On the balance sheet date the company reviews the book value of deferred income tax assets. If it is likely that sufficient taxable
income will not be obtained in the future period to offset the benefits of deferred income tax assets the book value of deferred
income tax assets shall be written down. When it is highly possible to obtain sufficient taxable income the written down amount
shall be reversed.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented at the net amount after
offsetting when they simultaneously meet the following conditions:
(1) The taxpayer within the company has the legal right to settle current income tax assets and current income tax liabilities on a net
basis;
(2) Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration
department on the same taxpayer within the company.
41. Leasing
(1) The company as lessee
On the commencement date of the lease term the Company recognizes the right-of-use assets and lease liabilities for all leases
except for simplified short-term lease and low value asset lease.The accounting policies for the right-of-use assets can be found in Note III. 32 of the auditor’s report.The initial measurement of lease liabilities is based on the present value of lease payments that have not been paid on the start date of
143深圳市深粮控股股份有限公司2024年年度报告全文
the lease term calculated using the implicit interest rate of the lease. If the implicit interest rate of the lease cannot be determined the
incremental borrowing rate is used as the discount rate. The lease payment amount includes fixed payment amount and substantial
fixed payment amount. If there is a lease incentive the relevant amount of the lease incentive shall be deducted; Variable lease
payments depending on index or ratio; The exercise price of the purchase option provided that the lessee reasonably determines that
the option will be exercised; The amount to be paid for exercising the option to terminate the lease provided that the lease term
reflects that the lessee will exercise the option to terminate the lease; And the expected amount to be paid based on the residual value
of the guarantee provided by the lessee. Subsequently the interest expense of the lease liability for each period of the lease term shall
be calculated at a fixed periodic interest rate and included in the current profit and loss. Variable lease payments that are not included
in the measurement of lease liabilities are recognized in the gains and profits of current period when they are actually incurred.Short term leasing
Short term lease refers to a lease with a lease term not exceeding 12 months from the start date of the lease term excluding leases
with purchase options.The company will recognize the lease payments for short-term leases in the relevant asset costs or current profit and loss with the
straight-line method during each period of the lease term.For short-term leasing the company adopts the simplified treatment method mentioned above for the items that meet the short-term
leasing conditions in the following asset types according to the category of leased assets.Low value asset leasing
The low value asset leasing refers to leasing with lower value when a single leased asset is a brand new asset.The company will record the lease payments for low value asset leases in the relevant asset costs or current profit and loss with the
straight-line method during each period of the lease term.For low value asset leasing the company chooses to adopt the simplified treatment method mentioned above based on the specific
situation of each lease.Lease change
If there is a change in lease and the following conditions are met simultaneously the company will treat the lease change as a
separate lease for accounting treatment: * The lease change expands the lease scope by adding the right to use one or more leased
assets; * The increased consideration is equivalent to the individual price for the expansion of the lease scope adjusted according to
the situation of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Company shall reallocate the
consideration of the contract after the change redetermine the lease term and remeasure the lease liability based on the present value
of the lease payment amount after the change and the revised discount rate.If the lease change results in a reduction in the lease scope or lease term the company shall adjust the book value of the right-of-use
assets accordingly and record the relevant gains or losses from partial or complete termination of the lease in the gains and profits of
current period.If other lease changes result in the remeasurement of lease liabilities the Company shall adjust the book value of the right of use
assets accordingly.
144深圳市深粮控股股份有限公司2024年年度报告全文
(2) The company as a lessor
When the company acts as the lessor leases that have substantially transferred all risks and rewards related to asset ownership are
recognized as financing leases while leases other than financing leases are recognized as operating leases.Finance lease
In financial leasing at the beginning of the lease term the company uses the net lease investment as the book value of the receivable
financing lease payments. The net lease investment is the sum of the unguaranteed residual value and the present value of the lease
payments that have not yet been received on the start date of the lease term discounted at the implicit interest rate of the lease. the
company as the lessor calculates and recognizes interest income for each period of the lease term at a fixed periodic interest rate.The variable lease payments obtained by the company as the lessor which are not included in the net lease investment measurement
are recognized in the gains and profits of current period when actually incurred.The derecognition and impairment of receivable financing lease payments shall be accounted for in accordance with the provisions of
Accounting Standards for Enterprises No. 22- Recognition and Measurement of Financial Instruments and Accounting Standards for
Enterprises No. 23- Transfer of Financial Assets.Operating lease
The rent of operating leases is recognized in the gains and profits of current period using the straight-line method for each period
during the lease term. The initial direct expenses related to operating leases shall be capitalized amortized over the lease term on the
same basis as rental income recognition and recognized in the gains and profits of current period in installments. The variable lease
payments related to operating leases that are not included in the lease income are recognized in the gains and profits of current period
when actually incurred.Lease change
If there is a change in the operating lease the company will treat it as a new lease for accounting treatment from the effective date of
the change. The prepaid or receivable lease payments related to the lease before the change are considered as the new lease payments.If there is a change in financing lease and the following conditions are met simultaneously the company will treat the change as a
separate lease for accounting treatment: * The change expands the lease scope by adding the right to use one or more leased assets;
* The increased consideration is equivalent to the individual price for the expansion of the lease scope adjusted according to the
situation of the contract.If there is a change in financing lease that has not been accounted for as a separate lease the Company will treat the changed lease as
follows: * If the change takes effect on the lease commencement date the lease will be classified as an operating lease. The
Company will treat it as a new lease from the effective date of the lease change and use the net lease investment before the effective
date of the lease change as the book value of the leased asset; * If the change takes effect on the commencement date of the lease
the lease will be classified as a financing lease and the company will conduct accounting treatment in accordance with the provisions
of the Accounting Standards for Enterprises No. 22- Recognition and Measurement of Financial Instruments regarding the
modification or renegotiation of contracts.
145深圳市深粮控股股份有限公司2024年年度报告全文
42. Other important accounting policy and estimation
43.Changes of important accounting policy and estimation
(1) Changes of important accounting policies
□Applicable ?Not applicable
(2) Changes of important accounting estimation
□Applicable□Not applicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2023 and implementation of
relevant financial statement items at the beginning of the year for the first time
□Applicable ?Not applicable
44.Others
VI. Tax
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
Taxable value added (The taxable
amount is calculated by multiplying the
taxable sales amount by the applicable
VAT 13.00% 9.00%6.00%5.00%3.00%
tax rate and deducting the input tax
allowed for deduction in the current
period)
Consumption tax Actual paid turnover tax 7.00%5.00%
Urban maintenance and construction tax Actual paid turnover tax 3.00%
Enterprise income tax Taxable income 25.00%
For ad valorem taxes 1.2% of the
remaining value after deducting 20.00%
from the original value of the property
Property tax 1.20%12.00%
shall be calculated and paid; For levy
based on rent calculated and paid at
12.00% of rental income
When real estate property rights are
transferred a one-time payment shall be
Deed tax 3.00%-5.00%
made to the property transferee at the
agreed contract price
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
Shenzhen Cereals Holdings Co. Ltd. 25.00%
25.00% tax exemption for some
Shenzhen Cereals Group Co. Ltd (hereinafter referred to as “SZCG”)
businessesShenzhen Hualian Grain and Oil Trading Co. Ltd. (hereinafter referred to as “Hualian Cereals
25.00%and Oil”)
146深圳市深粮控股股份有限公司2024年年度报告全文
Dongguan Shenliang Hualian Cereals and Oil Trading Co. Ltd (hereinafter referred to as
25.00%
“Dongguan Hualian”)
Shenzhen Shenliang Hongjun Catering Management Co. Ltd. (hereinafter referred to as
25.00%
“Shenliang Hongjun”)
25.00% tax exemption for some
Shenzhen Flour Co. Ltd (hereinafter referred to as “Shenzhen Flour”)
businessesShenliang Quality Inspection Co. Ltd. (hereinafter referred to as “Shenliang Quality
20.00%Inspection”)
Hainan Shenliang Oil & Food Co. Ltd. (hereinafter referred to as “Hainan Oil & Food”) 20.00%
Shenzhen Shenliang Doximi Business Co. Ltd. (hereinafter referred to as “Doximi”) 25.00%Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd (hereinafter referred to as “Big
25.00%Kitchen”)
Shenzhen Shenliang Storage (Yingkou) Co. Ltd (hereinafter referred to as “Yingkou Storage”) 25.00%Shenzhen Shenliang Cold Chain Logistics Co. Ltd. (hereinafter referred to as “Cold Chain
15.00%Logistics”)Shenzhen Shenliang Property Development Co. Ltd. (hereinafter referred to as “Shenliang
25.00%Property Development”)Shenzhen Shenliang Property Management Co. Ltd. (hereinafter referred to as “Shenliang
20.00%Property Management”)
Dongguan Shenliang Logistics Co. Ltd. (hereinafter referred to as “Dongguan Logistics”) 25.00%
Dongguan International Food Industrial Park Development Co. Ltd. (hereinafter referred to as
25.00%
“International Food”)Dongguan Shenliang Oil & Food Trade Co. Ltd. (hereinafter referred to as “Dongguan Oil &
25.00%Food”)
Shuangyashan Shenliang Cereals Base Co. Ltd. (hereinafter referred to as “Shuangyashan”) 25.00%Shenzhen Shenbao Huacheng Technology Co. Ltd. (hereinafter referred to as “Shenbao
15.00%Huacheng”)Wuyuan Ju Fang Yong Tea Industry Co. Ltd (hereinafter referred to as “Wuyuan Ju Fang
15.00%Yong”)Shenzhen Shenshenbao Investment Co. Ltd (hereinafter referred to as “Shenshenbao
25.00%Investment”)
Shenzhen Shenshenbao Tea Culture Commercial Management Co. Ltd. (hereinafter referred
25.00%
to as “Shenbao Tea Culture”)
Hangzhou Fuhaitang Catering Management Chain Co. Ltd. (hereinafter referred to as
25.00%
“Fuhaitang Catering”)Hangzhou Fuhaitang Tea Ecology Technology Co. Ltd (hereinafter referred to as “Fuhaitang
25.00%Tea Ecology”)
Mount Wuyi Shenbao Rock Tea Co. Ltd. (hereinafter referred to as “Shenbao Rock Tea”) 25.00%
Yunnan Shenbao Pu’er Tea Supply Chain Management Co. Ltd. (hereinafter referred to as
25.00%
“Pu’er Tea Supply Chain”)
Shenzhen Shenliang Food Co. Ltd. (hereinafter referred to as “Shenzhen Shenliang Food”) 25.00%
Huizhou Shenliang Food Co. Ltd. (hereinafter referred to as “Huizhou Shenliang Food”) 20.00%
Huizhou Shenbao Technology Co. Ltd. (hereinafter referred to as “Huizhou Shenbao”) 25.00%Shenliang Hongli Grain and Oil (Shenzhen) Co. Ltd (hereinafter referred to as “Shenliang
25.00%Hongli”)
Xingye Food Co. Ltd. (hereinafter referred to as “Xingye Food”) 16.50%
147深圳市深粮控股股份有限公司2024年年度报告全文
2. Preferential taxation
1. VAT discounts and approvalAccording to the “Notice of the Ministry of Finance and the State Administration of Taxation on the Issues Concerning the VATCollection and Exemption of Grain Enterprises (CSZ [1999] No. 198)” and “Shenzhen Tax Service State Taxation Administrationand Shenzhen Finance Bureau SGSF (SCF [1999] No.428)” confirming that SZCG the Company’s subsidiary and its subsidiaries
are state-owned grain purchase and sale enterprises that undertake grain collection and storage tasks for Shenzhen the grain sold is
subject to tax-free declaration by rule and enjoys the exemption from VAT. In addition according to the stipulation of the“Announcement of State Administration of Taxation on Relevant Management Matters After Clarifying the Cancellation of theApproval of Some VAT Preferential Policies” (SAT Announcement 2015 No. 38) the approval for exemption from VAT and the
involved tax review and approval procedures for the state-owned grain enterprises that undertake grain collection and storage tasks
other grain enterprises that operate tax-free projects and enterprises that have edible vegetable oil sales business for government
reserves are canceled and changed to record management. The taxpayer does not change the content of the record materials during
the period of tax exemption can be put on a one-time record. In December 2013 SZCG obtained the notice of the VAT preferential
record (SGSFJBM [2013] No.2956) from Shenzhen Futian State Administration of Taxation. In the case of no change in policy this
limited filing period started on January 1st 2014.The VAT input tax amount of the preferential item was separately accounted for
and the input VAT calculation method cannot be changed within 36 months after the selection. As of December 31 2024 the tax
exemption policy has been in effect since its filing in 2014 and the company’s VAT input tax has not changed since it was accounted
for separately in 2014 so the company continues to enjoy the tax preference.
2. Stamp duty house property tax and urban land use tax preferences
According to the stipulations of the Announcement of the Ministry of Finance and the State Administration of Taxation onContinuing the Implementation of Tax Preferential Policies for Some National Reserve Commodity Reserves([2022]No.8)” and
documents of Guangdong Province Department of Finance Guangdong Provincial Taxation Bureau of the State Administration of
Taxation and Guangdong Provincial Food and Material Reserve Bureau (YCSH [2020]No.2 confirming that the fund account
book of SZCG the Company’s subsidiary and its direct depots is exempt from stamp duty confirming that the written purchase
and sale contracts of SZCG in the process of undertaking the commodity reserve business are exempt from stamp duty and
confirming that SZCG’s house property and land used for the commodity reserve business are exempt from house property tax and
urban land use tax. The execution time limit for this tax preference policy is from January 1 2022 to December 31 2024.
3. Enterprise income tax
(1) On May 27 2021 the Ggeneral Aadministration of Taxation Ministry of Finance issued the Notice on the Extension of
Preferential Policies of Enterprise Income Tax of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in
Shenzhen the enterprise income tax of qualified enterprises located in Qianhai Shenzhen-Hong Kong Modern Service Industry
Cooperation Zone is levied at the rate of 15.00% and the Notice to be implemented from January 1 2021 to December 31 2025.The Company's subsidiary cold chain logistics is registered in Shenzhen Qianhai Cooperation Zone which is eligible for preferential
tax conditions. According to relevant policies of the cooperation zone its income tax will enjoy a preferential tax of 15.00%
(2) On December 23 2021 Shenbao Huacheng a subsidiary of the Company obtained the High-tech Enterprise Certificate
(Certificate No.: GR202144205394) jointly issued by the Shenzhen Science and Technology Bureau the Shenzhen Finance Bureau
and the Shenzhen Tax Service State Taxation Administration which is valid for three years. According to the relevant preferential
policies of the state for high-tech enterprises the qualified high-tech enterprises will pay corporate income tax at a reduced income
tax rate of 15.00% within three years from the year of identification. Shenbao Huacheng will enjoy the preferential tax policy from
2021 to 2024.
148深圳市深粮控股股份有限公司2024年年度报告全文
(3) On November 3 2021 Wuyuan Ju Fang Yong a subsidiary of the Company obtained the High-tech Enterprise Certificate
(Certificate No.: GR202136000731) jointly issued by the Science and Technology Department of Jiangxi Province the Finance
Department of Jiangxi Province and the Jiangxi Provincial Tax Service State Taxation Administration which is valid for three years.According to the relevant preferential policies of the state for high-tech enterprises qualified high-tech enterprises will pay corporate
income tax at a reduced income tax rate of 15.00% within three years from the year of identification. Wuyuan Ju Fang Yong will
enjoy the preferential tax policy from 2021 to 2024.
(4) According to the Notice of the Ministry of Finance and the State Taxation Administration on the Treatment of Corporate Income
Tax Treatment of Fiscal Funds for Special Purposes (CS[2009]No.87) the governmental service incomes obtained by SZCG the
Company’s subsidiary and its subordinate companies by carrying out government grain reserves business are fiscal funds for special
purposes those that meet the requirements can be regarded as non-taxable incomes and deducted from the total income when
calculating the taxable income. Expenses arising from the use of the above non-taxable income for expenditure shall not be deducted
from the calculation of taxable income; for assets formed from expenditure the calculated depreciation and amortization shall not be
deducted from the calculation of taxable income.
(5) Shenzhen Flour a subsidiary of the Company is a flour primary processing enterprise according to the stipulations of the“Notice on Issuing the Scope (Trial) of Primary Processing of Agricultural Products Applicable to the Corporate Income TaxPreferential Policy (CS[2008]No.149)” and the “Supplementary Notice on the Scope of Primary Processing of Agricultural ProductsApplicable to the Corporate Income Tax Preferential Policy of the Ministry of Finance and the State Administration of Taxation”
(CS[2011]No.26) the wheat primary processing is exempt from income tax.
(6) According to 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 ([2022]No.13) from January 1 2022 to December 31 2024 the
part of the annual taxable income of small and low-profit enterprises not exceeding 1.00 million yuan shall be included in the taxable
income at a reduced rate of 25.00% and the enterprise income tax shall be paid at a tax rate of 20.00%. The company’s subsidiary
Hainan Grain and Oil Shenliang Property Shenliang Quality Inspection and Huizhou Shenliang are small profit enterprises and in
line with the preferential tax conditions.
3. Other
VII. Notes to main items of consolidated financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 9442.96 11234.32
Cash in bank 164844740.19 238163848.68
Other monetary fund 3345108.08 2565704.28
Total 168199291.23 240740787.28
3949901.144356180.68
2.Tradable financial assets
In RMB
Item Ending balance Opening balance
Financial assets measured at fair value 1122347.85
149深圳市深粮控股股份有限公司2024年年度报告全文
and with variation reckoned into current
gains/losses
Including:
Equity investment instrument 1122347.85
Including:
Total 1122347.85
Other explanation:
3.Derivative financial assets
In RMB
Item Ending balance Opening balance
Other explanation:
4.Note receivable
(1) By category
In RMB
Item Ending balance Opening balance
Bank acceptance bill 2327160.00 113932.00
Total 2327160.00 113932.00
(2) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book value Bad debts reserve Book Book value Bad debts reserve Book
Amount Ratio Amount Accrued valueratio Amount Ratio Amount
Accrued value
ratio
Including:
Including:
If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses:
□Applicable□Not applicable
(3) Bad debts reserve accrual collected or reversal in the period
Bad debts reserve accrual in the period:
In RMB
Amount changed in the period
Category Opening balance Accrual Collected or Written-off Other Ending balancereversal
Including major amount bad debts reserve that collected or reversal in the period:
□ Applicable□Not applicable
(4) Notes receivable already pledged by the Company at the end of the period
150深圳市深粮控股股份有限公司2024年年度报告全文
In RMB
Item Amount pledged at period-end
(5) Notes endorsed or discounted and undue on balance sheet date
Item Ending derecognized amount Ending not derecognized amount
(6) Note receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major note receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on note receivable charged off:
5.Account receivable
(1) By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 237689963.04 185011814.38
1-2 years 4395809.28 1411768.67
2-3 years 812823.91 732353.29
Over 3 years 95921013.66 95284580.37
3-4 years 664460.24 2124859.32
4-5 years 2096832.37 80685.16
Over 5 years 93159721.05 93079035.89
Total 338819609.89 282440516.71
(2) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debts reserve Book balance Bad debts reserve
Book value Book value
Amount Ratio Amount Accru Accrual ratio Amount Ratio Amount al ratio
Account
receivable
with bad
debts 100008783.reserve 63 29.52%
99914189.399.91
7%94594.26
99603414.7
135.27%
99513955.799.91
8%89458.93
accrual on
a single
basis
Including:
Account
receivable
with bad
debts 238810826.26 70.48% 3115854.61 2.63%
235694971.182837102.
650064.73%3098066.951.69%
179739035.
reserve 05
accrual on
portfolio
151深圳市深粮控股股份有限公司2024年年度报告全文
Including
Portfoli
o of sales 118311513. 34.92% 3115854.61 2.63% 115195659. 116066604.69 08 29 41.09% 3098066.95 2.67%
112968537.
receivable 34
Object-
specific 120499312. 35.56% 120499312. 66770497.757 57 1 23.64%
66770497.7
portfolio 1
Total 338819609. 100.00 103030043. 30.41 235789565. 282440516. 100.00 102612022. 36.33 179828493.89 % 98 % 91 71 % 73 % 98
Bad debts reserve accrual on single basis: 99914189.37 yuan
In RMB
Opening balance Ending balance
Name
Book balance Bad debtsreserve Book balance
Bad debts
reserve Accrual ratio Accrual causes
Bad debts
reserve accrual 99603414.71 99513955.78 100008783.63 99914189.37 99.91% Low possibility
on single basis of recovery
Total 99603414.71 99513955.78 100008783.63 99914189.37
Bad debts reserve accrual on portfolio: Portfolio of sales receivable
In RMB
Ending balance
Name
Book balance Bad debts reserve Accrual ratio
Portfolio of sales receivable 118311513.69 3115854.61 2.63%
Total 118311513.69 3115854.61
Explanation on the basis for determining portfolio:
Bad debts reserve accrual on portfolio: object-specific portfolio
In RMB
Ending balance
Name
Book balance Bad debts reserve Accrual ratio
Object-specific portfolio 120499312.57
Total 120499312.57
Explanation on the basis for determining portfolio:
If the bad debts reserve of account receivable is made in accordance with the general model of expected credit losses:
□ Applicable□Not applicable
(3) Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Change in current period
Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other
Bad debts
reserve for
accounts 102612022.73 586396.33 168375.08 103030043.98
receivable
Total 102612022.73 586396.33 168375.08 103030043.98
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
Name Collected or reversal Reason for reversal Manner of reversal define the accrued ratio
of original bad debts
152深圳市深粮控股股份有限公司2024年年度报告全文
reserve
(4) Account receivable charged off in the period
In RMB
Item Amount charged off
Including major account receivable charged off:
In RMB
Reason for charged Procedure of Resulted by related
Enterprise Nature Amount charged off
off charged off transaction (Y/N)
Explanation on account receivable charged off:
(5) Top 5 receivables and contract assets at ending balance by arrears party
In RMB
Ratio in total Ending balance of
Name Ending balance of Ending balance of
Ending balance of ending balance of bad debt reserve
account receivable contract assets account receivable and impairmentand contract assets account receivableand contract assets reserve of contractassets
First 116870897.62 34.49% 0.00
Second 15377080.00 4.54% 153770.80
Third 10455627.54 3.09% 10455627.54
Fourth 9396151.19 2.77% 93961.51
Fifth 6435350.10 1.90% 64353.50
Total 158535106.45 46.79% 10767713.35
6.Contract asset
(1) Contract asset
In RMB
Ending balance Opening balance
Item
Book balance Bad debtsreserve Book value Book balance
Bad debts
reserve Book value
(2) Amount and reasons for significant changes in book value during the reporting period
In RMB
Item Amount of change Reason for change
(3) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book value Bad debts reserve Book Book value Bad debts reserve Book
Amount Ratio Amount Accrued valueratio Amount Ratio Amount
Accrued value
ratio
Including:
Including:
153深圳市深粮控股股份有限公司2024年年度报告全文
If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses:
□Applicable□Not applicable
(4) Bad debts reserve accrued collected or reversal
In RMB
Collected or reversal in Written-off in the
Item Accrued in the period Reason
the period period
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
define the accrued ratio
Enterprise Collected or reversal Reason for reversal Manner of reversal
of original bad debts
reserve
Other explanation:
(5) Contract assets charged off during the reporting period
In RMB
Item Amount charged off
Including major contract assets charged off:
In RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on contract assets charged off:
Other explanation:
7.Account receivable financing
(1) Category of account receivable financing
In RMB
Item Ending balance Opening balance
(2) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book value Bad debts reserve Book Book value Bad debts reserve Book
Amount Ratio Amount Accrued valueratio Amount Ratio Amount
Accrued value
ratio
Including:
Including:
The bad debts reserve of account receivable is made on the basis of the general model of expected credit losses:
In RMB
Bad debts reserve Phase I Phase II Phase III Total
154深圳市深粮控股股份有限公司2024年年度报告全文
Expected credit losses Expected credit losses for the entire Expected credit losses for the entire
over next 12 months duration (without credit impairment duration (with credit impairmentoccurred) occurred)
Balance on Jan. 1
2024 in the period
Classification basis and accrued ratio of bad debts reserve for each stage
Explanation on significant changes in the book balance of accounts receivable financing with changes in impairment provision in
the current period:
(3) Bad debts reserve accrued collected or reversal
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Bad debts reserve
Total
Important bad debts reserve collected or reversal
In RMB
Basis and rationality to
define the accrued ratio
Enterprise Collected or reversal Reason for reversal Manner of reversal
of original bad debts
reserve
Other explanation:
(4) Account receivable financing already pledged by the Company at period-end
In RMB
Item Amount pledged at period-end
(5) Account receivable financing endorsed or discounted and undue on balance sheet date
In RMB
Item Amount derecognized at period-end Amount not derecognized at period-
end
(6) Account receivable financing charged off in the period
Unit: RMB
Item Amount charged off
Including major account receivable financing charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on account receivable financing charged off:
155深圳市深粮控股股份有限公司2024年年度报告全文
(7) Changes of account receivable financing and change of fair value in the period
(8) Other explanation
8.Other accounts receivable
In RMB
Item Ending balance Opening balance
Other accounts receivable 19978436.61 29141966.16
Total 19978436.61 29141966.16
(1) Interest receivable
1)Category of interest receivable
In RMB
Item Ending balance Opening balance
2)Significant overdue interest
In RMB
Whether impairment has occurred
Borrower Ending balance Overdue period Overdue reason
and its judgment basis
Other explanation:
3)Accrued bad debts reserve
□Applicable□Not applicable
4)Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Collected orreversal Written-off Other
Bad debts reserve
Total
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts
reserve
Other explanation:
156深圳市深粮控股股份有限公司2024年年度报告全文
5) Interest receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major interest receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on interest receivable charged off:
Other explanations:
(2) Dividend receivable
1)Category of dividend receivable
In RMB
Item (or investee) Ending balance Opening balance
2)Significant dividend receivable with aging over one year
In RMB
Whether impairment
Item (or investee) Ending balance Aging Reason for not received has occurred and its
judgment basis
3)Accrued bad debts reserve
□Applicable□Not applicable
4)Bad debts reserve accrued collected or reversal
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Bad debts reserve
Total
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
define the accrued ratio
Enterprise Collected or reversal Reason for reversal Manner of reversal
of original bad debts
reserve
Other explanation:
5) Dividend receivable charged off in the period
Unit: RMB
157深圳市深粮控股股份有限公司2024年年度报告全文
Item Amount charged off
Including major dividend receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on dividend receivable charged off:
Other explanation:
(3) Other account receivable
1)By nature
In RMB
Nature Ending book balance Beginning book balance
Deposit and margin 16410289.56 10671175.15
Other intercourse funds 105477322.66 121023644.56
Total 121887612.22 131694819.71
2)By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 9698491.15 18294637.69
1-2 years 7784603.76 9511259.22
2-3 years 5278542.28 2536281.98
Over 3 years 99125975.03 101352640.82
3-4 years 2121384.83 3501011.75
4-5 years 737000.59 1478563.36
Over five years 96267589.61 96373065.71
Total 121887612.22 131694819.71
3)Accrued bad debts reserve
□Applicable □Not applicable
In RMB
Ending balance Opening balance
Book value Bad debts reserve Book value Bad debts reserve
Category Book Book
Accrued Accrued
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Including:
Including:
Bad debts reserve accrual on single basis
In RMB
Opening balance Ending balance
Category Bad debts Bad debts
Book value Book value Accrued ratio Reason
reserve reserve
158深圳市深粮控股股份有限公司2024年年度报告全文
Bad debts reserve accrual on portfolio:2
In RMB
Ending balance
Category
Book value Bad debts reserve Accrued ratio
Portfolio of expected credit
7905973.603166581.1640.05%
loss
Object-specific portfolio 13830884.67 531588.97 2.95%
Total 21736858.27 3698170.13
Explanation on the basis to determine such portfolio:：
If the bad debts reserve of account receivable is made on the basis of the general model of expected credit losses:
□Applicable□Not applicable
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debts reserve Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance of Jan. 1 2024 2647199.61 99905653.94 102552853.55
Balance of Jan. 1 2024
in the period
Current accrual 1051142.38 1051142.38
Current reversal 1694648.46 1694648.46
Other changes 171.86 171.86
Balance on Dec. 31
20243698170.1398211005.48101909175.61
Classification basis and bad debts reserve ratio for each stage
Changes in book balance with significant changes in impairment provision in the current period
□Applicable□Not applicable
4)Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Collected orreversal Written-off Other
Bad debts reserve of
other accounts 102552853.55 1051142.38 1694648.46 171.86 101909175.61
receivable
Total 102552853.55 1051142.38 1694648.46 171.86 101909175.61
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
define the accrued ratio
Name Collected or reversal Reason for reversal Manner of reversal
of original bad debts
reserve
159深圳市深粮控股股份有限公司2024年年度报告全文
5) Other account receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major other account receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on other account receivable charged off:
6)Top 5 other accounts receivable at ending balance by arrears party
In RMB
Proportion in total
Enterprise Nature Ending balance Aging other receivables at Ending balance of
ending balance (%) bad debt reserve
First Intercourse funds 24108742.46 Over five years 19.78% 22187644.18
Second Intercourse funds 8326202.63 Over five years 6.83% 8326202.63
Third Intercourse funds 8285803.57 Over five years 6.80% 8285803.57
Fourth Intercourse funds 8257311.80 Over five years 6.78% 8257311.80
Fifth Intercourse funds 6781000.00 1-2 years 5.56% 0.00
Total 55759060.46 45.75% 47056962.18
7)Those booked into other account receivables due to centralized fund management
In RMB
Other explanation:
9.Account paid in advance
(1) By aging
In RMB
Ending balance Opening balance
Aging Amount Ratio Amount Ratio
Within 1 year 7575700.47 77.49% 16244819.71 94.26%
1-2 year 1614572.15 16.52% 676069.63 3.92%
2-3 years 367510.00 3.76% 95050.89 0.55%
Over 3 years 218246.08 2.23% 218761.69 1.27%
Total 9776028.70 17234701.92
Explanation on reasons for not timely settling important account paid in advance with aging over one year:
(2) Top 5 accounts paid in advance at ending balance by prepayment object
Prepaid objects Ending balance Proportion in total prepayment balance
at the end of period (%)
First 5872392.80 60.07%
Second 793035.00 8.11%
160深圳市深粮控股股份有限公司2024年年度报告全文
Prepaid objects Ending balance Proportion in total prepayment balance
at the end of period (%)
Third 606905.83 6.21%
Fourth 394980.00 4.04%
Fifth 366110.00 3.74%
Total 8033423.63 82.17%
Other explanation:
10.Inventory
Whether the Company needs to comply with the disclosure requirements of the real estate industry or not
No
(1) By category
In RMB
Ending balance Opening balance
Inventories fall Inventories
provision or fall provision
Item contract or contract
Book balance performance Book value Book balance performance Book value
costs costs
impairment impairment
provision provision
Raw materials 80869593.40 14029193.74 66840399.66 63123938.67 15039481.32 48084457.35
Goods in
process 26297439.74 26297439.74 27382027.01 27382027.01
Finished goods 3990325129.27 87793814.10 3903440914.10 3449447657.13 87071319.87 3362376337.26
Goods in
transit 15150734.79 14241135.86 12559426.44 12559426.44
Low value
consumables -
6304862.832190627.194114235.649760002.871718261.898041740.98
packaging
materials
Work in
process- 5388642.06 5388642.06 5438363.67 5438363.67 0.00
outsourced
Goods in
transit 30064517.52 30064517.52
Total 109267426.74154400919.61 109402277.09 4044998642.52 3567711415.79 3458443989.04
5
(2) Data resource recognized as inventory
In total
Data resource Data resource
Data resource
Item inventory self- inventory acquired Total
inventory outsourced
processed with other manners
(3) Inventories fall provision or impairment provision of contract performance costs
In RMB
Item Opening Current amount increased Current amount decreased Ending balance
161深圳市深粮控股股份有限公司2024年年度报告全文
balance Accrual Other Reversal orwrite-off Other
Raw materials 15039481.32 152650.14 1162937.72 14029193.74
Finished goods 87071319.87 102622527.13 101668937.12 231095.78 87793814.10
Low value
consumables -
packaging 1718261.89 662968.69 190603.39 2190627.19
materials
Work in
process- 5438363.67 49721.61 5388642.06
outsourced
Total 109267426.75 103438145.96 103072199.84 231095.78 109402277.09
Inventories fall provision accrued in terms of portfolio
In RMB
Ending Opening
Portfolio name Inventories fall Accrued ratio of Opening Inventories fall Accrued ratio ofEnding balance provision inventories fall balance provision inventories fallprovision provision
Standard for inventories fall provision accrued in terms of portfolio
(4) Explanation on the capitalized amount of borrowing costs included in the ending balance of inventory
(5) Explanation on the current amortization amount of contract performance costs
11.Assets held for sale
In RMB
Item Ending book Impairment Ending book Estimated Estimatedbalance provision value Fair value disposal cost disposal time
Other explanation:
12. Non-current asset due within one year
In RMB
Item Ending balance Opening balance
(1) Creditors’ investment maturing within one year
□Applicable□Not applicable
(2) Other creditors’ investment maturing within one year
□Applicable□Not applicable
13.Other current assets
In RMB
Item Ending balance Opening balance
Input tax to be deducted 111305418.60 48868668.82
Prepayment of income taxes 1424165.18 25137638.10
Prepaid and deferred expense 513701.48 1623160.79
Certificate of deposit 0.00 30226849.32
162深圳市深粮控股股份有限公司2024年年度报告全文
VAT deduction amount 0.00 1606.45
Total 113243285.26 105857923.48
Other explanation:
14.Creditors’ investment
(1) Creditors’ investment
In RMB
Ending balance Opening balance
Item Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Changes of impairment provision of creditors’ investment in current period
In RMB
Item Opening balance Current increase Current decrease Ending balance
(2) Important creditors’ investment at year-end
In RMB
Ending balance Beginning balance
Item Face Coupon Actual Maturity Overdue Face Coupon Actual Maturity Overdue
value rate rate date principal value rate rate date principal
(3) Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses for
over next 12 months the entire duration (without the entire duration (with
Total
credit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2024
in the period
Classification basis and accrued ratio of bad debts reserve for each stage
(4) Creditors’ investment charged off in the period
Unit: RMB
Item Amount charged off
Including major creditors’ investment charged off:
Explanation on creditors’ investment charged off:
Changes in book balance with significant changes in the current period's impairment provision
□Applicable□Not applicable
Other explanation:
163深圳市深粮控股股份有限公司2024年年度报告全文
15.Other creditors’ investment
(1) Other creditors’ investment
In RMB
Accumulated
impairment
Change of fair Accumulated provision
Item Opening Accrual Interest Endingbalance interest adjustment value in the Cost change of recognized in Noteperiod balance fair value other
comprehensive
income
Changes in impairment provision of other creditors’ investments in the current period
In RMB
Item Opening balance Current increase Current decrease Ending balance
(2) Other creditors’ investment at year-end
In RMB
Other Ending balance Beginning balance
creditors’ Face Coupon Actual Maturity Overdue Face Coupon Actual Maturity Overdue
item value rate rate date principal value rate rate date principal
(3) Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses for
over next 12 months the entire duration (without the entire duration (with
Total
credit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2024
in the period
Classification basis and accrued ratio of bad debts reserve for each stage
(4) Other creditors’ investment charged off in the period
Unit: RMB
Item Amount charged off
Including major other creditors’ investment charged off:
Explanation on other creditors’ investment charged off:
Changes in book balance with significant changes in the current period's impairment provision
□Applicable□Not applicable
Other explanation:
16.Other equity instrument investment
164深圳市深粮控股股份有限公司2024年年度报告全文
In RMB
Accumulated Accumulated Reasons for
Gains Losses gains losses designating
recognized in recognized in recognized in recognized in Dividend fair value
other other other other income measurement
Item Ending Openingbalance balance comprehensive comprehensive comprehensive comprehensive
recognized with changes
income for the income for the income at the income at the in this recognized in
current period current period end of this end of this period other
period period comprehensiveincome
Other equity instrument investment derecognized in current period
In RMB
Accumulated gains carried Accumulated losses carried
Item name Reason for de-recognition
forward to retained gains forward to retained gains
Sub-item disclosure of current non-trading equity instrument investments
In RMB
Reasons for
Amount of designating fair Reasons for
other value transferringother
Item Dividends Accumulated Accumulated
comprehensive measurement comprehensive
income gains losses income with changestransferred to recognized in income to
retained other retained
earnings comprehensive earnings
income
Other explanation:
17.Long-term account receivable
(1) Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debts Bad debts
Book balance Book value Book balance Book value range
reserve reserve
(2) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debts reserve Book Book balance Bad debts reserve Book
Amount Ratio Amount Accrued value Accrued valueratio Amount Ratio Amount ratio
Including:
Including:
The bad debt reserve is made in terms of the general model of expected credit losses
165深圳市深粮控股股份有限公司2024年年度报告全文
In RMB
Phase I Phase II Phase III
Bad debts reserve Expected credit losses Expected credit losses for Expected credit losses forthe entire duration (without the entire duration (with Totalover next 12 months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2024
in the period
Classification basis and accrued ratio of bad debts reserve for each stage
(3) Bad debts reserve accrued collected or reversal
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
define the accrued ratio
Enterprise Collected or reversal Reason for reversal Manner of reversal
of original bad debts
reserve
Other explanation:
(4) Long-term account receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major long-term account receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of charged Resulted by relatedoff off transaction (Y/N)
Explanation on long-term account receivable charged off:
18.Long-term equipment
In RMB
Current changes (+/-)
Openin Opening Addi Other Othe Accrual Ending Ending
g balance of tiona Cap Investmen comprehe r Cash of O balance
Investee balanc impairme l ital t gains nsive equit dividend impair t
balanc
e of
e (book nt inves red recognize income y or profit h impairme
value) provision tmen ucti d under adjustmen chan announced
ment (book
on equity to issued provisio
e nt
t t ge n r
value) provision
I. Joint venture
II. Associated enterprise
Shenzhen Duoxi Equity -
Investment Fund 15877 700262.6 88746
Management Co. Ltd. 23.81 7 1.14
Zhuhai Hengxing Feed 33653 - 32724
Industrial Co. Ltd. 135.48 928695.3 440.16 2
Shenliang Intelligent 24
Wulian Equity 659 -
Investment Fund 27081 51 2422376
(Shenzhen) Partnership 889.78 3.3 .48
Enterprise (Limited) 0
Shenzhen Shenyuan 11686 11744
Data Tech. Co. Ltd 177.41 58809.77 987.1
166深圳市深粮控股股份有限公司2024年年度报告全文
8
24
74008 659 - 45356Subtotal 926.48 0.00 51 3992524 888.43.3 .74 4
0
24
Total 74008
926.480.00513992524888.43.3.744
0
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable□Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable□Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Other explanation:
19.Other non-current financial assets
In RMB
Item Ending balance Opening balance
Equity instrument investment 57500.00 57500.00
Total 57500.00 57500.00
Other explanation:
20.Investment real estate
(1) Measured by cost
□Applicable □Not applicable
In RMB
Item House and building Land use right Construction inprogress Total
I. Original book value
1.Opening balance 614752374.09 614752374.09
2.Current amount
increased 55903541.44 55903541.44
(1) Outsourcing
(2) Inventory\fixed
assets\construction in 55903541.44 55903541.44
process transfer-in
(3) Increased by
combination
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 670655915.53 670655915.53
II. Accumulated
167深圳市深粮控股股份有限公司2024年年度报告全文
depreciation and
accumulated
amortization
1.Opening balance 351155342.20 351155342.20
2.Current amount
increased 17425326.58 17425326.58
(1) Accrual or
amortization 17425326.58 17425326.58
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 368580668.78 368580668.78
III. Impairment
provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending book value 302075246.75 302075246.75
2. Opening book value 263597031.89 263597031.89
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable□Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable□Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Other explanation:
(2) Measured at fair value
□Applicable□Not applicable
(3) Converted to investment real estate and measured at fair value
In RMB
Item Accounts before Reason for Approval Impact on
Impact on other
conversion Amount conversion procedures gains/losses comprehensiveincome
(4) Investment real estate without property certificate completed
In RMB
168深圳市深粮控股股份有限公司2024年年度报告全文
Reason for not obtaining the property
Item Book value
rights certificate
1st 7th- 20th floors of Dongguan No.1 The joint inspection has not been
48448609.84
Grain and Oil Headquarters completed temporarily
Remaining issues currently being
Office Building Rental Haizhifeng Part 821981.29
followed up
Other explanation:
21.Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 2009520283.95 2171989776.52
Disposal of fixed assets 7552.00
Total 2009520283.95 2171997328.52
(1) Fixed assets
In RMB
Item House and Machinery Transport Electronic andbuildings equipment equipment other equipment Total
I. Original book
value:
1.Opening
balance 2030666059.42 779559717.86 16758876.75 104121959.67 2931106613.70
2.Current
amount increased 9205482.95 17288443.03 839650.43 4679055.94 32012632.35
(1) Purchase 4338198.00 839650.43 1742457.19 6920305.62
(2) Construction
in progress 7458146.94 12950245.03 2094777.81 22503169.78
transfer-in
(3) Increased by
combination
(4) Other increase 1747336.01 841820.94 2589156.95
3.Current
amount decreased 98410268.63 5106863.10 293227.27 7885906.73 111696265.73
(1) Disposal
or scrap 2606987.96 293227.27 7553033.37 10453248.60
(2) Other decrease 98410268.63 2499875.14 332873.36 101243017.13
4.Ending
balance 1941461273.74 791741297.79 17305299.91 100915108.88 2851422980.32
II. Accumulated
depreciation
1.Opening
balance 350849019.39 318153516.48 14387876.06 72903471.54 756293883.47
2.Current
amount increased 46344897.70 36131528.06 738012.43 12658525.44 95872963.62
(1) Accrual 45253792.30 36131528.06 738012.43 11085040.44 93208373.22
(2) Other increase 1091105.40 1573485.00 2664590.40
3.Current
amount decreased 1573485.00 2260264.10 268510.03 8730226.12 12832485.25
(1) Disposal
or scrap 2260264.10 268510.03 7548832.01 10077606.14
(2) Other decrease 1573485.00 1181394.11 2754879.11
4.Ending balance 395620432.09 352024780.44 14857378.46 76831770.86 839334361.84
III. Impairment
provision
1.Opening 2813063.84 9889.87 2822953.71
169深圳市深粮控股股份有限公司2024年年度报告全文
balance
2.Current
amount increased
(1) Accrual
3.Current
amount decreased 254619.18 254619.18
(1) Disposal
or scrap 254619.18 254619.18
4.Ending
balance 2558444.66 9889.87 2568334.53
IV. Book value
1.Ending book
value 1545840841.65 437158072.69 2447921.45 24073448.15 2009520283.95
2. Opening book
value 1679817040.03 458593137.54 2371000.69 31208598.26 2171989776.52
(2) Temporarily idle fixed assets
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3) Fixed assets leased out by operation
In RMB
Item Ending book value
(4) Fix assets without property certification held
In RMB
Item Book value Reasons for without the propertycertification
Civil engineering of CDE warehouse
Dawn Grain Reserve Warehouse 576992093.23 Still under processing
Housing and buildings of Dongguan
Industrial and Trade 82473841.32 Under processing
Office building 13578444.19 Remaining issues currently beingfollowed
1st to 3rd floors of Grain and Oil 4527320.33 The joint inspection has not beenHeadquarters completed temporarily
Other explanation:
(5) Impairment testing of fixed assets
□Applicable□Not applicable
(6) Disposal of fixed assets
In RMB
Item Ending balance Opening balance
170深圳市深粮控股股份有限公司2024年年度报告全文
7552.00
Total 7552.00
Other explanation:
22.Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 39312847.70 51288301.16
Total 39312847.70 51288301.16
(1) Construction in progress
In RMB
Ending balance Opening balance
Item
Book balance Impairment Impairmentprovision Book value Book balance provision Book value
Dongguan grain
storage and
wharf matching 23185559.25 23185559.25 32632618.62 32632618.62
project
CDE storage of
Dongguan Food
Industrial Park 6281644.10 6281644.10 4965118.29 4965118.29
and wharf
mating projects
Low
Temperature
Warehouse
Renovation 3942246.16 3942246.16
Project of
Pinghu Grain
Depot
Precision
processing color
selection and
impurity 1061287.68 1061287.68
removal
equipment
project
Powder
packaging
equipment 814388.06 814388.06 1784995.63 1784995.63
project
Deep
processing 513729.78 513729.78
project
Small
packaging 8880595.19 8880595.19
production line
Other 8928295.83 4900573.38 4027722.45 7256767.03 4745523.38 2511243.65
Total 44213421.08 4900573.38 39312847.70 56033824.54 4745523.38 51288301.16
(2) Changes of major construction in progress
In RMB
Item Budget Opening Current Transfer Othe Ending Propo Prog Accumu Includi Interest Capitbalance amount -in fixed r balance rtion ress lated ng: capitali al
171深圳市深粮控股股份有限公司2024年年度报告全文
increase assets decre of capitaliz amount zation resou
d ased projec ation of of rate in rces
in the t interest capitali Period
Perio invest zation
d ment of
in interest
budge in
t Period
Dong
guan
grain Loan
stora s
ge
and 1242000 326326 62209 893668
7399
572.2411488.5088.5372219
from
wharf 000.00 18.62 66.53 7.76 66 564.81 % 0% 95.16
finan
cial
matc instit
hing ution
proje
ct
CDE
stora
ge of
Dong
guan Loan
Food s
Indus
trial 1087300 496511 35731 225658 62816 98.79 98.7 867305
from
Park 000.00 8.29 10.75 4.94 44.10 % 9% 68.74
finan
cial
and instit
wharf ution
matin
g
proje
cts
7399
Total 2329300 375977 97940 111932 30396 123952000.00 36.91 77.28 72.70 572.66 208.91 563.90
(3) Impairment provision of construction in progress
In RMB
Item Opening balance Current increase Current decrease Ending balance Reason for accrual
Other explanation:
(4) Impairment testing of construction in progress
□Applicable□Not applicable
(5) Engineering material
In RMB
Ending balance Opening balance
Item Book balance Impairment Impairmentprovision Book value Book balance provision Book value
Other explanation:
172深圳市深粮控股股份有限公司2024年年度报告全文
23.Productive biological asset
(1) Measured at cost
□Applicable □Not applicable
□Applicable □Not applicable
In RMB
Item Plant Livestock Forestry Fisheries Total
I. Original book
value
1.Opening
balance 416771.28 416771.28
2.Current
amount increased
(1) Outsourcing
(2) Self-cultivate
3.Current
amount decreased
(1) Disposal
(2) Other
4.Ending
balance 416771.28 416771.28
II. Accumulated
depreciation
1.Opening
balance 58154.28 58154.28
2.Current
amount increased 9692.40 9692.40
(1) Accrual 9692.40 9692.40
3.Current
amount decreased
(1) Disposal
(2) Other
4.Ending
balance 67846.68 67846.68
III. Impairment
provision
1.Opening
balance
2.Current
amount increased
(1) Accrual
3.Current
amount decreased
(1) Disposal
(2) Other
4.Ending
balance
IV. Book value
1.Ending book
value 348924.60 348924.60
2. Opening book 358617.00 358617.00
173深圳市深粮控股股份有限公司2024年年度报告全文
value
(2) Impairment testing of productive biological asset measured at cost model
□Applicable□Not applicable
(3) Productive biological asset measured at fair value
□Applicable□Not applicable
24. Oil and gas asset
□ Applicable□Not applicable
25. Right-of-use asset
(1) On right-of-use asset
In RMB
Item House and building Land use rights Total
I. Original book value
1.Opening balance 110474798.90 1823669.22 112298468.12
2.Current amount
increased 86582460.08 1052300.17 87634760.25
(1) Lease 86582460.08 1052300.17 87634760.25
3.Current amount
1627356.491627356.49
decreased
Other decrease 1627356.49 1627356.49
4.Ending balance 195429902.49 2875969.39 198305871.88
II. Accumulated depreciation
1.Opening balance 54661515.02 703804.94 55365319.96
2.Current amount
increased 29020700.05 289168.19 29309868.24
(1) Accrual 29020700.05 289168.19 29309868.24
3.Current amount
decreased 1627356.49 1627356.49
(1) Disposal
(2) Other decrease 1627356.49 1627356.49
4.Ending balance 82054858.58 992973.13 83047831.71
III. Impairment provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3.Current amount
decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending book value 113375043.91 1882996.26 115258040.17
2. Opening book value 55813283.88 1119864.28 56933148.16
174深圳市深粮控股股份有限公司2024年年度报告全文
(2) Impairment testing of right-of-use assets
□Applicable□Not applicable
Other explanation:
26.Intangible assets
(1) Intangible assets
In RMB
Non-
Item Land use Patent patent Shop use Software Forest use Trademaright technolo rights usage rights rights rk rights Total
gy
I. Original
book value
1.Opening 585810806. 54979841. 3610487. 108614817. 22859104. 98073.3 775973131.
balance 50 97 37 05 98 2 19
2.Current
amount 2096568.36 8661447.51 2047.04 10760062.9
increased 1
(1)
Purchase 8661447.51 2047.04 8663494.55
(2) Internal
R&D
(3)
Increased
by
combinatio
n
(4) Other
increase 2096568.36 2096568.36
3.Current
amount 88540.56 457063.72 2047.04 547651.32
decreased
(1)
Disposal 2047.04 2047.04
(2) Other
decrease 88540.56 457063.72 545604.28
4.Ending 587907374. 54891301. 3610487. 116819200. 22859104. 98073.3 786185542.
balance 86 41 37 84 98 2 78
II.Accumulat
ed
depreciatio
n
1.Opening 129883658. 31200957. 1585353. 52875861.4 8456983.5 91477.5 224094292.
balance 78 77 29 9 6 4 43
2.Current
amount 14795217.3 1258740.40 9 90028.90
16338073.6
7772863.602883.02
33257806.9
increased 8
(1) Accrual 14120617.5 1258740.46 9 90028.90
16338073.6
7772863.602883.02
32583207.2
4
(2) Other
increase 674599.74 674599.74
3.Current
amount 90000.00 632.94 90632.94
decreased
(1)
Disposal 632.94 632.94
(3) Other
decrease 90000.00 90000.00
175深圳市深粮控股股份有限公司2024年年度报告全文
4.Ending 144678876. 32459698. 1675382. 69123935.1 9229847.1 93727.6 257261466.
balance 08 26 19 6 6 2 47
III.Impairment
provision
1.Opening 5553283.5
balance 4 5553283.54
2.Current
amount
increased
(1) Accrual
3.Current
amount
decreased
(1)
Disposal
4.Ending 5553283.5
balance 4 5553283.54
IV. Book
value
1.Ending 443228498. 16878319. 1935105. 47695265.6 13629257.
book value 78 61 18 8 82 4345.70
523370792.
77
2. Opening 455927147. 18225600. 2025134. 55738955.5 14402121.
book value 72 66 08 6 42 6595.78
546325555.
22
Ratio of the intangible assets formed by internal R&D in balance of intangible assets at period-end
(2) Data resource recognized as intangible assets
□Applicable □Not applicable
(3) Land use rights without certificate of ownership
In RMB
Reasons for without the property
Item Book value
certification
Land use right 7849990.00 Still in progress
Other explanation:
(4) Impairment testing of intangible assets
□Applicable□Not applicable
27.Goodwill
(1) Original book value of goodwill
In RMB
Investee or Current increased Current decreased
matters forming Opening balance Formed bybusiness Disposal Ending balancegoodwill combination
Total
176深圳市深粮控股股份有限公司2024年年度报告全文
(2) Impairment provision of goodwill
In RMB
Investee or Current increased Current decreased
matters forming Opening balance Accrual Disposal Ending balancegoodwill
Total
(3) Related information of asset group or asset group portfolio where goodwill is included
Component and basis of asset Consistent with previous
Name Operation segment and basis
group or asset group portfolio years(Y/N)
Changes in asset group or asset group portfolio
Objective fact and basis
Name Component before change Component after change
leading to change
Other explanation
(4) Specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable□Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
(5) Completion of performance commitments and corresponding impairment of goodwill
When goodwill is formed there is a performance commitment and the reporting period or the previous period is within the
performance commitment period
□Applicable□Not applicable
Other explanation:
28.Long-term expenses to be apportioned
In RMB
Item Opening balance Current amount Currentincreased amortization Other decreased Ending balance
Decoration fee 7335025.84 606399.67 2071622.22 5869803.29
Improvement
expenditure for fix 13393709.04 8746681.95 4973792.09 17166598.90
assets
Other 3965583.17 1800.00 990596.68 2976786.49
Total 24694318.05 9354881.62 8036010.99 26013188.68
Other explanation:
177深圳市深粮控股股份有限公司2024年年度报告全文
29.Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets not offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences asset differences asset
Impairment provision
for assets 78886233.43 19113818.29 79024031.58 18487424.12
Unrealized profits in
internal transactions 1955326.35 293298.96 3110821.11 1173392.02
Credit impairment loss 131272060.28 32427392.41 131582333.01 32508076.97
Lease liabilities 72583919.01 18145979.75 60423752.25 9667435.83
Total 284697539.07 69980489.41 274140937.95 61836328.94
(2) Deferred income tax liability not offset
In RMB
Item Ending balance Opening balance
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation
appreciation of
enterprise combination 41980665.84 10495166.46 43635535.04 10908883.86
under different control
Right-of-use asset 68309530.63 17077382.66 56763213.31 9108070.16
Total 110290196.47 27572549.12 100398748.35 20016954.02
(3) Deferred income tax assets and deferred income tax liabilities listed as net amount after offsetting
In RMB
Offsetting between the Ending balance of Trade-off between the Opening balance of
Item deferred income tax deferred income tax deferred income tax deferred income taxassets and liabilities assets or liabilities after assets and liabilities at assets or liabilities after
offsetting period-begin offsetting
Deferred income tax
asset 17077382.66 52903106.75 9079033.56 52757295.38
Deferred income tax
liabilities 17077382.66 10495166.46 9079033.56 10937920.46
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 151802527.41 73593637.62
Deductible loss 319287351.61 251212047.17
Total 471089879.02 324805684.79
(5) Deductible losses of unrecognized deferred income tax assets expiring in following years
In RMB
Year Ending balance Beginning balance Note
202416724256.16
202559047529.9256660853.56
202624075232.2019393006.74
178深圳市深粮控股股份有限公司2024年年度报告全文
202737011114.5933681969.13
202895247245.5398962940.16
202981843220.206398410.05
20301592707.061592707.06
203111566491.6211566491.62
20326231412.696231412.69
20332672397.80
Total 319287351.61 251212047.17
Other explanation:
30.Other non-current asset
In RMB
Item Ending balance Opening balance
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Property to be
relocated 3523917.24 3523917.24 3523917.24 3523917.24
Prepaid for
engineer 2497360.73 2497360.73
Prepaid for
system 3774032.76 3774032.76
Total 6021277.97 6021277.97 7297950.00 7297950.00
Other explanation:
31.Assets with restricted ownership or use rights
In RMB
Ending Beginning
Item Book Book value Restriction Restriction Book Restriction Restrictionbalance type status balance Book value type status
Guarantee
deposit Guarantee
Monetary credit
fund 9263948.38 9263948.38 deposit 5464837.31 5464837.31
deposit
lawsuit credit
freezing deposit. etc
etc.Total 9263948.38 9263948.38 5464837.31 5464837.31
Other explanation:
32.Short-term loans
(1) By category
In RMB
Item Ending balance Opening balance
Loan in credit 1484605101.05 1223462519.16
Total 1484605101.05 1223462519.16
Explanation on category of short-term loans:
179深圳市深粮控股股份有限公司2024年年度报告全文
(2) Overdue and unpaid short-term loans
The overdue and unpaid short-term loans was 0.00 yuan at period-end including follow major amount:
In RMB
Borrower Ending balance Loan rate Overdue time Overdue interest
Other explanation:
33. Tradable financial liability
Item Ending balance Opening balance
Including:
Including:
Other explanation:
34.Derivative financial liability
In RMB
Item Ending balance Opening balance
Other explanation:
35. Note payable
In RMB
Category Ending balance Opening balance
Notes expiring at year-end not repaid was 0.00 yuan.
36. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Trade accounts payable 320908083.65 157073307.00
Account payable for engineer and
equipment 69278292.34 176815688.99
Other 2600723.24 2276200.81
Total 392787099.23 336165196.80
(2) Major accounts payable with aging over one year or overdue major accounts payable
Other explanation:
37.Other account payable
In RMB
180深圳市深粮控股股份有限公司2024年年度报告全文
Item Ending balance Opening balance
Dividend payable 2933690.04 2933690.04
Other account payable 265387637.46 275112561.49
Total 268321327.50 278046251.53
(1) Interest payable
In RMB
Item Ending balance Opening balance
Important overdue and unpaid interest situation:
In RMB
Borrower Overdue amount Overdue reason
Other explanation:
(2) Dividend payable
In RMB
Item Ending balance Opening balance
Shenzhen Investment Management
Company 2690970.14 2690970.14
Untrusted shares 242719.90 242719.90
Total 2933690.04 2933690.04
Other explanations including important dividends payable that have not been paid for more than one year should disclose the
reasons for non payment:
(3) Other account payable
1)By nature
In RMB
Item Ending balance Opening balance
Accounts receivable and other expenses 181075520.70 204092429.04
Deposit and margin 71419422.77 59175450.98
Engineering quality assurance deposit and
final payment 439888.55 2697829.08
Accrued expenses 12452805.44 9146852.39
Total 265387637.46 275112561.49
2)Significant other account payable with aging over 1 year or overdue significant other account payable
In RMB
Item Ending balance Reason for not repaying or carry-over
38.Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Lease payment received in advance 1120939.23 3654.89
181深圳市深粮控股股份有限公司2024年年度报告全文
Other 568809.63 1081046.71
Total 1689748.86 1084701.60
(2) Significant accounts received in advance with aging over one year or overdue significant accounts received in advance
In RMB
Item Ending balance Reason for not repaying or carry-over
In RMB
Item Change in amount Reason for change
39.Contract liabilities
In RMB
Item Ending balance Opening balance
Advance on sales 126590458.95 86566253.73
Total 126590458.95 86566253.73
Significant contract liabilities with aging over 1 year
In RMB
Item Ending balance Reason for not repaying or carry-over
Amount and reasons for important changes in book value in the period
In RMB
Item Change in amount Reason for change
40.Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
compensation 253139696.10 233803876.16 312986714.32 173956857.94
II. After-service
welfare-defined 12314242.50 27439433.28 32886693.69 6866982.09
contribution plans
III. Dismissed welfare 760724.60 75058.39 109108.39 726674.60
Total 266214663.20 261318367.83 345982516.40 181550514.63
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wage bonus
allowance and subsidy 244877081.13 188746265.77 267341101.67 166282245.23
2. Employees’ welfare 96864.69 4749559.66 4477896.52 368527.83
3. Social insurance
charges 302549.13 6852237.93 6772082.31 382704.75
Including: medical
insurance premium 272678.90 5965562.25 5890358.97 347882.18
Industrial injury
insurance 3329.93 485056.04 482256.09 6129.88
premiums
Maternity 26540.30 401619.64 399467.25 28692.69
182深圳市深粮控股股份有限公司2024年年度报告全文
insurance
premiums
4. Housing public
reserve 36788.20 21353475.85 21338987.27 51276.78
5. Trade union fee and
education fee 7817412.95 4927162.83 6018623.43 6725952.35
Non-monetary welfare 7158174.12 7017023.12 141151.00
Other short-term
compensation 9000.00 17000.00 21000.00 5000.00
Total 253139696.10 233803876.16 312986714.32 173956857.94
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
insurance premiums 27351.36 17719286.56 17690136.82 56501.10
2. Unemployment
insurance premiums 6375.81 867396.44 873772.25
3. Enterprise annuity 12280515.33 8852750.28 14322784.62 6810480.99
Total 12314242.50 27439433.28 32886693.69 6866982.09
Other explanation:
41.Taxes payable
In RMB
Item Ending balance Opening balance
VAT 2133176.38 3929827.56
Enterprise income tax 95215697.77 78612383.92
Personal income tax 1450305.23 919489.66
Urban maintenance and construction tax 113475.35 184436.23
Property tax 1350095.44 1402724.23
Stamp tax 1089799.33 924833.66
Deed tax 664227.84 664227.84
Use tax of land 138387.07 15205.45
Educational surtax 81630.62 253657.15
Environment protection tax 2644.32
Total 102239439.35 86906785.70
Other explanation:
42.Liability held for sale
In RMB
Item Ending balance Opening balance
Subsidiary Wuhan Jiacheng 66579828.59
Total 0.00 66579828.59
Other explanation:
43.Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Lease liabilities due within one year 42927367.21 22805473.76
183深圳市深粮控股股份有限公司2024年年度报告全文
Total 42927367.21 22805473.76
Other explanation:
44.Other current liabilities
In RMB
Item Ending balance Opening balance
Deferred output tax 8042645.47 3896108.63
Other 0.00 31.93
Total 8042645.47 3896140.56
Changes of short-term bonds payable:
In RMB
Accrual Premium Breach
Bonds Face Issuance Bonds Amount Opening Issued in interest and Paid in Ending contractvalue date term issued balance the period by face discount the period balance or
value amortization not(Y/N)
Other explanation:
45.Long-term loan
(1) Category of long-term loan
In RMB
Item Ending balance Opening balance
Explanation on category of long-term loans:
Other explanation including interest rate range:
46. Bonds payable
(1) Bonds payable
In RMB
Item Ending balance Opening balance
(2) Changes of bonds payable (not including preferred stock perpetual capital securities and other
financial instruments classified as financial liability)
In RMB
Accru Premium Breac
Face Coup Issuan Bonds Amou
Openi
ng Issued
al and Paid Endin h
Bonds value on ce term nt balanc in the
intere
st by discou in the
g contra
rate date issued e period face nt period
balanc ct or
e not(Y/
value amortization N)
Total —— ——
184深圳市深粮控股股份有限公司2024年年度报告全文
(3) Description of convertible bonds
(4) Other financial instruments classified as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-beginning Current increased Current decreased Period-end
financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Explanation on the basis for classifying other financial instrument into financial liability
Other explanation
47.Lease liability
In RMB
Item Ending balance Opening balance
Lease payments 126474987.95 64121413.50
Unrecognized financing charges -5463119.98 -3570988.00
Lease liabilities due within one year -42927367.21 -22805473.76
Total 78084500.76 37744951.74
Other explanation:
48.Long-term account payable
In RMB
Item Ending balance Opening balance
Special account payable 16636326.62 17994633.05
Total 16636326.62 17994633.05
(1) By nature
In RMB
Item Ending balance Opening balance
Other explanation:
(2) Special account payable
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Depreciation funds
for fixed assets of
government reserve 16214402.96 207446.57 16421849.53
grain depots
Special funding for
research in the
grain public 207477.09 207477.09
welfare industry
Shenzhen Hospital
Phase III housing
expropriation 1529253.00 138381.00 1667634.00
property rights
185深圳市深粮控股股份有限公司2024年年度报告全文
exchange
Grain and oil
market monitoring
and early warning 3500.00 3500.00 7000.00
subsidy
Special funds for
the construction
and maintenance of 40000.00 40000.00
the grain
emergency system
Total 17994633.05 349327.57 1707634.00 16636326.62
Other explanation:
49. Long-term wage payable
(1) Long-term wage payable
In RMB
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current Period Last Period
Scheme assets:
In RMB
Item Current Period Last Period
Net liability (assets) of the defined benefit plans
In RMB
Item Current Period Last Period
Content of defined benefit plans and relevant risks impact on future cash flow of the Company as well as times and uncertainty:
Major actuarial assumption and sensitivity analysis of defined benefit plans:
Other explanation:
50.Accrual liabilities
In RMB
Item Ending balance Opening balance Causes
Other explanation including relevant important assumptions and estimation:
51.Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Government grant 82819873.24 4057114.25 7673371.50 79203615.99
Total 82819873.24 4057114.25 7673371.50 79203615.99 --
Other explanation:
186深圳市深粮控股股份有限公司2024年年度报告全文
52.Other non-current liabilities
In RMB
Item Ending balance Opening balance
Other explanation:
53. Share capital
In RMB
Current increased (decreased) +/-
Opening balance New shares Shares
issued Bonus shares converted from Other Subtotal
Ending balance
public reserve
Total shares 1152535254.00 1152535254.00
Other explanation:
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Period-beginning Current increased Current decreased Period-end
Outstanding financial instrument
Quantity Book value Quantity Book value Quantity Book value Quantity Book value
Explanation on changes in other equity instrument reasons for changes and relevant accounting treatment basis:
Other explanation:
55. Capital reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share capital premium) 1267255141.21 4243305.73 1263011835.48
Other capital reserve 8896381.86 8896381.86
Total 1276151523.07 4243305.73 1271908217.34
Other instructions including changes in the current period reasons for changes:
In September 2024 a subsidiary of the Company Shenzhen Hualian Grain and Oil Trading Co. Ltd. purchased 49% minority
equity interest in its subsidiary Shuangyashan Shenliang Cereals Base Co. Ltd. The difference between the transaction
consideration and the corresponding change in the shareholding ratio based on the fair value of the identifiable net assets
calculated continuously from the purchase date was adjusted to reduce capital reserve by RMB 90805.74.In December 2024 the Company completed the equity delivery of Xingye Food Co. Ltd. (hereinafter referred to as “XingyeFood”) which is a subsidiary of Shenzhen Food Materials Group Co. Ltd. This transaction constituted a business combination
under the same control. The difference between the carrying value of the combination consideration (or the total par value of the
issued shares) and the carrying value of the net assets acquired in the combination was adjusted to reduce capital reserve (share
premium) by RMB 4152500.00. Meanwhile the net assets increased due to the combination were adjusted in the capital reserve
187深圳市深粮控股股份有限公司2024年年度报告全文
(share premium) under shareholders' equity in the comparative financial statements. For the portion of the retained earnings (sum
of surplus reserves and undistributed profits) realized by the acquiree before the business combination that belongs to the
combining party it was transferred from capital reserve to retained earnings.
56. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other explanation including changes and reason for changes:
57. Other comprehensive income
In RMB
Current Period
Less: written in other Less: written in other
Account comprehensive comprehensive
Opening before income in previous income in previous Less: Attributable Attributable toItem Endingbalance income period and carried period and carried income to parent minority balance
tax in the forward to forward to retained tax company shareholders
period gains/losses in current earnings in current expense after tax after tax
period period
II. Other
comprehensive - -
income re- 833174. 254811. 42043.982 5 212767.87 620406classified into 82 .95
gains/losses
Exchange
differences on
translation of - 254811. 42043.9 -
foreign currency 833174. 82 5 212767.87 620406
financial 82 .95
statements
Total of other - -
comprehensive 833174. 254811. 42043.9
income 82 82 5
212767.87620406.95
Other explanation including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment
for the arbitraged items:
58. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Work safety fee 741968.19 1243738.41 833088.84 1152617.76
Total 741968.19 1243738.41 833088.84 1152617.76
Other explanation including changes in current period and reason for changes:
59. Surplus public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus reserves 483103366.38 133626331.30 616729697.68
188深圳市深粮控股股份有限公司2024年年度报告全文
Total 483103366.38 133626331.30 616729697.68
Other explanation including changes in current period and reasons for changes:
60. Retained profit
In RMB
Item Current period Last period
Retained profit at last period-end before
adjustment 1916792566.57 1910954084.79
Total adjustment amount of retained profit at
period-beginning (adjustment increase -10287612.07
+/adjustment decrease-)
Retained profit at period-beginning after
adjustment 1916792566.57 1900666472.72
Add: net profit attributable to shareholder of parent
company 325309578.52 347739109.06
Less: withdrawal of legal surplus reserve 133626331.30 43479201.71
Common stock dividends payable 230507050.80 288133813.50
Retained profit at period-end 1877968762.99 1916792566.57
Details about adjusting the retained profits at the beginning of the period:
1) Due to the retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations the
retained profit at the beginning of the period was affected by negative 148597.5 yuan.
2) Due to changes in accounting policies the retained profit at the beginning of the period was affected by 0.00 yuan.
3) Due to major accounting error correction the retained profit at the beginning of the period was affected by 0.00 yuan
4) Due to changes in merge scope caused by the same control the retained profits at the beginning of the period was affected by -
10436209.66 yuan.
5) Due to other adjustments the retained profits at the beginning of the period was affected by 0.00 yuan.
61. Operating revenue and operating cost
In RMB
Item Current period Last periodIncome Cost Income Cost
Main business 5371493401.89 4477833978.58 6189691606.18 5228738901.98
Other business 3596445.02 1167456.25 313750.64 106899.36
Total 5375089846.91 4479001434.83 6190005356.82 5228845801.34
Whether the lower of the audited net profit before and after deduction of non-recurring gains/ losses is negative or not
□Yes □No
Information on breakdown of operation income and cost:
In RMB
Branch 1 Branch 2 Total
Category Operating Operating Operating Operating Operating Operating Operating Operating
revenue cost revenue cost revenue cost revenue cost
Business
types
Including:
Classificati
on by
business
area
Including:
Market or
189深圳市深粮控股股份有限公司2024年年度报告全文
customer
type
Including:
Contract
types
Including:
Classificati
on by time
of goods
transfer
Including:
Classificati
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
Total
Information relating to performance obligations:
Item Time for Important Nature of the Is it the main Expected Types of quality
performance payment terms goods promised responsible refunds to assurance
obligations to transfer by person customers borne provided by the
the company by the company company and
related
obligations
Other explanations
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period the contract has been signed but the income corresponding to unfulfilled or incomplete
performance obligations is 126590458.95 yuan which is expected to be recognized in the year of 2025.Related information of contract variable price:
Significant contract changes or significant transaction price adjustments
In RMB
Item Accounting treatment method Impact on income
Other explanation:
62.Tax and surcharge
In RMB
Item Current period Last period
Urban maintenance and construction tax 1221674.64 1383698.15
Education surcharge 944426.67 1051442.01
Property tax 13228693.85 11861483.21
Use tax of land 1860162.47 1957226.62
Vehicle and vessel use tax 21598.24 19917.36
Stamp duty 2363400.05 2629698.94
Other 12703.14 6972.53
Total 19652659.06 18910438.82
190深圳市深粮控股股份有限公司2024年年度报告全文
Other explanation:
63.Administration expenses
In RMB
Item Current period Last period
Labor and social security benefits 92027598.27 132104257.58
Depreciation and amortization of long-
term assets 43892426.93 43251708.23
Office expenses 7832785.01 5977040.35
Intermediary agency fees 4537569.50 4727255.72
Communication expense 2163612.00 1738151.72
Vehicle usage fee 1694972.94 2134383.20
Travelling expense 1130140.38 1131371.09
Rental 713648.91 454215.27
Repairing expense 624504.35 969999.94
Low-value consumable 505314.41 456480.17
Business hospitality 409836.76 760742.03
Relocation and shutdown costs 37526.60 25476.09
Other 12675264.53 19334010.25
Total 168245200.59 213065091.64
Other explanation:
64.Sales expense
In RMB
Item Current period Last period
Labor and social security benefits 99897664.20 114823759.85
Depreciation and amortization of long-
term assets 9900670.84 11669044.05
Office expenses 10845695.36 10373217.31
Sales service fee 7295139.32 6944356.95
Storage and loading/unloading fees 1298777.88 8973219.39
Low value consumables and other loss
expenses 3722408.10 899870.58
Travel expenses 2556940.10 3007934.57
Business hospitality 1098538.42 1505531.70
Advertising expenses 274794.60 1100020.83
Rental 514723.11 1175659.26
Property insurance premium 1199180.50 939751.88
Logistics and transportation costs 702660.09 551895.13
Sales commission 75437.50
Vehicle use fee 284432.28 260081.34
Other 10218705.16 14130055.64
Total 149810329.96 176429835.98
Other explanation:
65.R&D expenses
In RMB
Item Current period Last period
Labor and social security benefits 12077363.97 12149800.39
Direct investment 7521427.97 2895753.44
191深圳市深粮控股股份有限公司2024年年度报告全文
Depreciation and amortization 3063811.07 3174111.67
Entrusted R&D expense 80188.68 117726.42
Travel expense 847673.24 650799.60
Inspection and debugging expense 929050.82 604082.75
Other expenses 689128.68 453090.41
Total 25208644.43 20045364.68
Other explanation:
66.Financial expense
In RMB
Item Current period Last period
Interest expenses 33986936.32 39968255.33
Including: interest expenses of lease
liability
Less: interest capitalization
Interest income -1832540.57 -959189.54
Exchange gains/losses 75332.11 286319.71
Handling fee and others 448518.55 767442.39
Total 32678246.41 40062827.89
Other explanation:
67.Other income
In RMB
Sources Current period Last period
Government grant 10243944.62 14663529.88
Input tax deduction 1579562.14 7890252.79
Handling fees for withholding personal
income tax 454718.47 398387.36
Other 62310.23 16988.26
Total 12340535.46 22969158.29
68.Net exposure hedge gains
In RMB
Item Current period Last period
Other explanation:
69.Income of fair value changes
In RMB
Sources Current period Last period
Tradable financial assets -105784.51
Tradable financial liabilities 288486.18
Total 0.00 182701.67
Other explanation:
70.Investment income
In RMB
192深圳市深粮控股股份有限公司2024年年度报告全文
Item Current period Last period
Long-term equity investment income
measured with equity method -3992524.74 3332391.85
Investment income from the disposal of
long-term equity investment 2890749.95
Investment income from the disposal of
tradable financial assets 2123849.30
Income from financial products 2394668.46 6622492.60
Total 3416742.97 9954884.45
Other explanation:
71.Credit impairment loss
In RMB
Item Current period Last period
Loss of bad debt of accounts receivable -417686.25 -3599093.34
Loss of bad debt of other accounts
receivable 643505.99 426721.19
Loss of bad debts of accounts prepaid -59090.80
Total 166728.94 -3172372.15
Other explanation:
72.Asset impairment loss
In RMB
Item Current period Last period
I. Inventory depreciation loss and
impairment loss of contract performance -102204026.35 -104336237.13
cost
VI. Impairment losses of construction in
progress -155050.00
Total -102359076.35 -104336237.13
Other explanation:
73.Income from disposal of assets
In RMB
Sources Current period Last period
Gains from the disposal of non-current
assets (disposal group) held for sale 2394378.42
(losses shall be filled in with “-”)
Income from the disposal of fixed assets
(losses shall be filled in with “-”) 41906.80
Income from the disposal of intangible
assets (losses shall be filled in with “-”) 5239932.45
Total 5281839.25 2394378.42
74.Non-operation income
In RMB
Amount included in the
Item Current period Last period current non-recurring
gains/losses
Government grants 16500.00 16500.00
193深圳市深粮控股股份有限公司2024年年度报告全文
Gains from damage and
scrapping of non-current assets 14444.62 51232.64 14444.62
Gains from inventory surplus 3081.80 6062.93 3081.80
No payment required 827455.51
Liquidated damages
compensation income 246085.99 1457192.35 246085.99
Other 328634.72 103784.80 328634.72
Total 608747.13 2445728.23 608747.13
Other explanation:
75.Non-operating expenditure
In RMB
Item Current period Last period Amount included in currentnon-recurring gains/ losses
External donations 21613.38 21613.38
Penalty expenses and
liquidated damages 13907.66 1291772.38 13907.66
Loss of scrap from inventory 176715.04 176715.04
Loss of scrap from non-current
assets 142968.10 105910.32 142968.10
Other 248775.50 403290.79 248775.50
Total 603979.68 1800973.49 603979.68
Other explanation:
76.Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Current income tax expenses 96132421.18 87781940.01
Deferred income tax expenses -931158.99 -13045542.44
Total 95201262.19 74736397.57
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Item Current period
Total profit 419344869.35
Income tax expenses calculated by statutory/applicable tax rate 62901730.40
Impact from different tax rate applicable with subsidiaries -133122.96
Effect of adjusting income tax in the previous period -973807.22
Impact of non-taxable income -24551943.95
Impact of cost expenses and losses unable to be deducted 22197551.21
Impact of the use of a previously unrecognized deferred income
tax asset on deductible losses -6441586.90
Impact of unrecognized deferred income tax assets in current
period on deductible temporary differences or deductible losses 51108299.25
Gains/losses of joint ventures and associated enterprises
measured with equity method -998131.19
Tax influence of additional deduction of R&D expenditure
(filled in with “-”) -2733712.87
Other -5174013.58
Income tax expenses 95201262.19
194深圳市深粮控股股份有限公司2024年年度报告全文
Other explanation:
77. Other comprehensive income
Refer to notes for details.
78. Items of cash flow statement
(1) Cash received with operating activities concerned
Cash received with other operating activities concerned
In RMB
Item Current period Last period
Intercourse funds and deposit 255222055.70 262341355.02
Government grants 6582472.32 13485589.19
Interest income 1446480.80 959189.53
Other 2734551.18 7408191.12
Total 265985560.00 284194324.86
Note of cash paid with other operating activities concerned:
Cash paid with other operating activities concerned
In RMB
Item Current period Last period
Intercourse funds and deposit 12.814.346.92 200194238.36
Daily operating expenses 116004859.92 93274316.07
Other 4979022.31 3693027.65
Total 133798229.15 297161582.08
Note of cash paid with other operating activities concerned:
(2) Cash with investment activities concerned
Cash received with other investment activities concerned
In RMB
Item Current period Last period
External lending recovered 726511.34
Total 0.00 726511.34
Significant cash received with other investment activities concerned:
Explanation on cash received with other investment activities concerned：
Cash paid with other investment activities concerned
In RMB
Item Current period Last period
Net cash flow from the disposal of
subsidiaries 7559395.68
Total 7559395.68 0.00
Significant cash paid with investment activities concerned
Cash paid with other operating activities concerned
(3) Cash with financing activities concerned
Cash received with other financing activities concerned
In RMB
195深圳市深粮控股股份有限公司2024年年度报告全文
Item Current period Last period
Note of cash received with other financing activities concerned:
Cash paid with other financing activities concerned
In RMB
Item Current period Last period
Operating lease paid 21955877.40 20079954.38
Payment of minority shareholder equity 11106589.90
Purchase of minority shareholder equity 28856000.00 3344850.00
Total 50811877.40 34531394.28
Explanation on cash paid with other financing activities concerned:
Changes in liabilities arising from financing activities
□Applicable □Not applicable
In RMB
Current increased Current decreased
Item Opening balance
Cash change Non-cash Cash change Non-cash
Ending balance
change change
Short-term
borrow 1223462519.16 3395816991.96 847880.55 3132663497.78 2858792.84 1484605101.05
Lease
liabilities 60596042.05 82371703.32 21955877.40 121011867.97
Total 1284058561.21 3395816991.96 83219583.87 3154619375.18 2858792.84 1605616969.02
(4) Cash flow listed at net amount
Item Relevant facts Basis for being listed at netamount Financial impact
(5) Significant activities and financial impacts that do not involve current cash inflow and outflow but
affect the financial condition of the company or may affect the cash flow of the company in the future
79.Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB
Supplementary information Current amount Last amount
1. Net profit adjusted to cash flow of
operation activities:
Net profit 324143607.16 346546867.19
Add: Impairment provision of assets 103280186.26 107508609.28
Depreciation of fixed assets
consumption of oil assets and depreciation 132209130.59 111231937.94
of productive biology assets
Depreciation of right-of-use
assets 5228150.97 22328053.93
Amortization of intangible assets 32504390.74 34397837.54
Amortization of long-term
deferred expenses 7307115.11 8660628.62
Loss from the disposal of fixed
assets intangible assets and other long- -5294363.80 -2394378.42
term assets (income is listed with “-”)
Losses on scrapping of fixedassets (income is listed with “- “) 50779.47 54677.68Loss from change of fair value -182701.67
196深圳市深粮控股股份有限公司2024年年度报告全文(income is listed with “- “)Financial expenses (income is
listed with “-”) 76139497.95 39973327.68
Investment loss (income is listed
with “-”) -14559424.88 -9954884.45
Decrease of deferred income tax
assets (increase is listed with “-”) -419064.89 -15049702.87
Increase of deferred income tax
asset ((increase is listed with “-”) -413717.40 2034884.00
Decrease of inventory (increase
is listed with “-”) 761631627.99 27253849.60
Decrease of operating receivable
accounts (increase is listed with “-”) 1167426765.77 92190867.25
Increase of operating payable
accounts (decrease is listed with “-”) -2605796038.83 -178865157.69
Other 1243738.41
Net cash flow arising from
operating activities -15317619.38 585734715.61
2. Material investment and financing not
involved in cash flow
Conversion of debt into capital
Convertible company bonds due
within one year
Financing lease of fixed assets
Right-of-use assets 87634760.25 7645189.94
3. Net change of cash and cash equivalents:
Ending balance of cash 158935342.85 236745667.10
Less: beginning balance of cash 236745667.10 62254288.58
Add: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase of cash and cash
equivalents -77810324.25 174491378.52
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including:
Including
Including:
Other explanation:
(3) Net cash received by disposing subsidiaries in the Period
In RMB
Amount
Net cash or cash equivalents received by disposing subsidiaries
in the Period 18619360.20
Including:
Wuhan Jiacheng 16360810.20
Zhenpin 2258550.00
Minus: Cash and cash equivalents held by subsidiaries on the
day losing control right 7559395.68
Including:
Wuhan Jiacheng 3118813.43
Zhenpin 4440552.25
Including:
197深圳市深粮控股股份有限公司2024年年度报告全文
Net cash received from disposing subsidiaries 11059964.52
Other explanation:
(4) Component of cash and cash equivalents
In RMB
Item Ending balance Opening balance
I. Cash 158935342.85 236745667.10
Including: Cash on hand 9442.96 11234.32
Bank deposit available for
payment at any time 158925899.89 236734432.78
III. Ending balance of cash and cash
equivalents 158935342.85 236745667.10
(5) Items with restricted application scope still belong to cash and cash equivalents
In RMB
Item Current amount Last amount Reason for still belonging tocash and cash equivalents
(6) Monetary funds not belonging to cash and cash equivalents
In RMB
Item Current amount Last amount Reason for not belonging tocash and cash equivalents
Monetary funds 9263948.38 5464837.31 Credit deposit litigationpreservation
Total 9263948.38 5464837.31
Other explanation:
(7) Explanation on other significant activities
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” that have been adjusted to the ending balance of the previous year
81. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Item Ending foreign currency balance Convert rate Ending RMB balance converted
Monetary fund 5338018.28
Including: USD 170791.46 7.1884 1227822.02
EURO
HKD 4438465.14 0.92604 4110196.26
Account receivable 1035374.09
Including: USD 89291.19 7.1884 641860.79
EURO
HKD 424947.65 0.92604 393513.30
Long-term borrow
198深圳市深粮控股股份有限公司2024年年度报告全文
Including: USD
EURO
HKD
Other explanation:
(2) Explanation on overseas operating entities including disclosure of their main overseas operating
location accounting currency and selection criteria for important overseas operating entities. If the
accounting currency changes the reasons should also be disclosed.□ Applicable □ Not applicable
82.Lease
(1) The company as leaser
□Applicable ?Not applicable
(2) The company as leasee
Operating lease with the company as leasee
□Applicable □Not applicable
In RMB
Including: income related to variable
Item Lease income lease payments not included in lease
payments
Rent housing equipment etc. 149643064.27
Total 149643064.27
Financing lease with the company as lessor
□Applicable□Not applicable
Annual lease payments not discounted in the next five years
□Applicable□Not applicable
Adjustment table for lease payment not discounted and net lease investments
(3) Recognize gains/losses from financing lease as producer or dealer
□Applicable□Not applicable
83.Data resource
84.Others
VIII. R&D expenditure
In RMB
Item Current period Last period
199深圳市深粮控股股份有限公司2024年年度报告全文
1.R&D items that meet capitalization conditions
In RMB
Current increase Current decrease
Item Beginning Recognized Carriedbalance Internal Ending
development Other as forward to balance
expenditure intangible currentassets gains/losses
Total
Major capitalized R&D items
Items R&D progress Estimated
Expected way of
generating Starting point of
Specific basis for
completion time economic benefits capitalization
starting
capitalization
Impairment provision for R&D expenditure
In RMB
Item Beginning balance Current increase Current decrease Ending balance Impairment test
2. Important outsourced projects under research
Item Expected way of generating economic The criteria and specific basis forbenefits determining capitalization or expensing
Other explanation:
IX. Changes in consolidation range
1. Enterprise combination not under the same control
(1) Enterprise combination not under the same control
In RMB
Ac Time point Cost of Ratio of Acquired Purch Standard to Income of acquiree Net profit of
qui for equity equity equity way Equity asing determine the from purchasing acquiree from
ree obtained obtained obtained obtained date purchasing date date to period-end purchasing date toway period-end
Other explanation:
(2) Combination cost and goodwill
In RMB
Consolidation cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost
Less: shares of fair value of identifiable net assets acquired
200深圳市深粮控股股份有限公司2024年年度报告全文
Portion of goodwill/combination cost less than the shares of fair
value of identifiable net assets acquired
Explanation on the method for determining the fair value of combination costs
Explanation on contingent considerations and their changes:
Main reasons for the formation of large goodwill
Other explanation:
(3) Identifiable assets and liabilities of the acquiree on purchasing date
In RMB
Fair value on purchasing date Book value on purchasing date
Assets:
Monetary funds
Accounts receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Accounts payable
Deferred tax liabilities
Net assets
Less: Minority interests
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Contingent liabilities assumed by the acquiree in enterprise combination:
Other explanation:
(4) Gains/losses arising from the equity held before purchasing date which are re-measured at fair value
Whether there is any transaction that achieves enterprise combination through multiple transactions and obtains control during the
reporting period or not
□Yes □No
(5) Explanation on failing to reasonably determine the combination consideration or the fair value of identifiable assets
and liabilities of the acquiree on the purchasing date or at the combination period-end
(6) Other explanation
2. Business combination under the same control
(1) Business combination under the same control in the Period
In RMB
Equity Co Standard to Income of the Net profit of the Income of Net profitratio mbi acquiree from the acquiree from the the of the
Acquire obtaine Basis of enterprise combination nati determinethe combination combination acquiree acquireee d in under the same control on combination period-begin to period-begin to during the during thecombin dat date the combination the combination comparison comparisonation e date date period period
201深圳市深粮控股股份有限公司2024年年度报告全文
Date
Xingy Before the Company's merger 20 acquiring
e Food 100.0 with Xingye Food Trading
24 the
Tradin 0% Co. Ltd. both were controlled
--
g Co. by Shenzhen Agricultural 12
control 127320.37 92048.86
right of 85624.62
Ltd. Power Group Co. Ltd. -24 theacquiree
Other explanation:
According to the equity transfer agreement between the Company and Shenzhen Agricultural Power Group Co. Ltd. the
Company agreed to acquire 100.00% equity of Xingye Food Co. Ltd. held by the latter at the consideration of 4152500.00 yuan.Before this transaction both the Company and Xingye Food were controlled byShenzhen Agricultural Power Group Co. Ltd.making this a business combination under the same control.
(2) Combination cost
In RMB
Combination cost
--Cash 4152500.00
-- Book value of non-cash assets
-- Book value of debts issued or assumed
-- Face value of equity securities issued
--Contingent consideration
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the assets and liabilities of the acquiree on combination date
In RMB
Combination date Ending balance of last period
Assets: 4344216.28 4398060.25
Monetary funds 3949901.14 4356180.68
Account receivable 366711.84 14276.27
Inventory
Fixed assets 27603.30 27603.30
Intangible assets
Liability:
Loan
Account payable
Net assets 4344216.28 4039399.55
Less: Minority interests
Net assets acquired 4344216.28 4039399.55
Contingent liability of the combined party assumed by the Company during combination:
Other explanation:
202深圳市深粮控股股份有限公司2024年年度报告全文
3. Reverse purchase
Basic transaction information basis of counter purchase whether making up business due to the assets and liability reserved by
listed company and basis determination of combination cost amount and calculation on adjusted equity by equity transaction:
4. Disposal of subsidiaries
Whether there is any situation where a single disposal of investment in a subsidiary result in loss of control or not
?Yes □No
In RMB
The
differenc
e between
the Method The
disposal and main amount
price and assumpti of other
the share On thedate of Fair value ons for
comprehe
of the loss of of Gains/los determini
nsive
subsidiar The remainin ng the income
Proportio Disposal Basis for y’s net proportio
control g equity ses fair value related to
Disposal n of methods determini assets in n of
the book in the arising equity
price at disposal value of from re-
of investme
Subsidiar the time at the at the
Time of
losing ng the
the remainin the consolida measure remainin nts in
y name of loss of time of time of
consolida g equity ted g equity
losing control
time of ted on the remainin financial ment of in the subsidiari
control loss of losingcontrol control financial date of
g equity
in the statement
remainin consolida es
control statement loss of on the g equity ted transferre
s control consolida at fair d to
correspon ted
date of value financialloss of statement investme
ding to financialstatement control on the
nt
the date of gains/loss
disposal loss of es or
of control retained
investme earnings
nt
Accordin
g to the
equity
transfer
agreemen
t and the
condition
s for the
transfer
Zhenpin of
Market control
Operation 3977261 100.00% Sell 2024-11-
the final
Technolo .71 30 date for
1506747
gy Co. completin.71
Ltd. g theindustrial
and
commerci
al change
is
determine
d to be
the date
of loss of
control
Other explanation:
Whether there is any situation where investments in subsidiaries are disposed by steps through multiple transactions and control is
lost in the current period or not
□Yes □No
5. Other reasons for changes in consolidation range
Consolidation scope changes caused by other reasons (eg establish new subsidiaries liquidate subsidiaries) and the related
circumstances:
203深圳市深粮控股股份有限公司2024年年度报告全文
6.Other
X. Equity in other entities
1. Equity in subsidiaries
(1) Membership of enterprise group
Shareholdi
Register Main ng ratio
Subsidiary ed place of Registration place Business nature Dir Indi Acquisition waycapital operation ectl rectl
y y
15300100
SZCG 00000. Shenzhen Shenzhe Grain & oil trading .00 Combine under the
00 City n City % same control
Hualian Grain 100000 Shenzhen Shenzhe 100.& Oil 000.00 City n City Grain & oil trading 00
Combine under the
% same control
Shenzhen 30000 Shenzhen Shenzhe 100.Flour 000.00 City n City Flour processing 00
Combine under the
% same control
Shenliang 100.Quality 80000 Shenzhen Shenzhe Inspection 00 Combine under the
Inspection 00.00 City n City % same control
Hainan Grain 10000 Haikou Haikou 100.and Oil 000.00 City City Feed production 00
Combine under the
% same control
Doximi 10000 Shenzhen Shenzhe
100.
E-commerce 00 Combine under the000.00 City n City % same control
Big Kitchen 10000 Shenzhen Shenzhe Sales and processing of grainoil and
100.
00 Combine under the000.00 City n City relevant products % same control
Yingkou 10000 Yingkou Yingkou 100.Storage 00.00 City City Storage 00
Combine under the
% same control
Cold Chain 10000 Shenzhen Shenzhe 100.Logistic 000.00 City n City On-line operation of fresh food 00
Combine under the
% same control
Shenliang 95000 Shenzhen Shenzhe Property development and 100.00 Combine under theProperty 00.00 City n City management % same control
International 221000 Dongguan Donggua 100. Combine under the
Food 000.00 City n City Port operation food production 00% same control
Dongguan 100000 Dongguan Donggua 100.Grain and Oil 000.00 City n City Food production 00
Combine under the
% same control
Dongguan 298000 Dongguan Donggua 49.Logistics 000.00 City n City Storage logistics 00
51.0 Combine under the
% 0% same control
Shuangyashan 100000 Shuangyas
Shuangy Construction of food base and 100.
000.00 han City ashan development of related 00
Combine under the
City complementary facilities % same control
Shenliang 30000 Shenzhen Shenzhe Catering 51.0Hongjun 000.00 City n City 0% Establishment
Dongguan 10000 Dongguan Donggua 100.Hualian 000.00 City n City Grain and oil trade 00 Establishment%
Shenliang 50000 Shenzhen Shenzhe 100.Property 00.00 City n City Property management 00 Establishment
204深圳市深粮控股股份有限公司2024年年度报告全文
Management %
Shenbao 207451 Shenzhen Shenzhe 100
Huacheng 300.00 City n City Manufacturing .00 Establishment%
Wuyuan Ju 290000 Shangrao Shangra 100.Fang Yong 000.00 City o City Manufacturing 00 Establishment%
Huizhou 60000 Huizhou Huizhou 100
Shenbao 000.00 City City Comprehensive businesses .00 Establishment%
Shenshenbao 50000 Shenzhen Shenzhe 100
Investment 000.00 City n City Investment management .00 Establishment%
Shenbao Tea 15000 Shenzhen Shenzhe 100.Culture 000.00 City n City Commercial trade 00 Establishment%
Shenliang 50000 Hangzhou Hangzho 100
Hongli 000.00 City u City Grain and oil wholesale .00 Establishment%
Fuhaitang 10000 Hangzhou Hangzho 100.Catering 00.00 City u City Catering 00 Establishment%
Fuhaitang
Ecology 20000 Hangzhou Hangzho
100. Business combination
00.00 City u City Tea planting production and sales 00 not under the sameTechnology % control
Shenbao Rock 20700 Wuyishan Wuyisha 100.Tea 000.00 City n City Manufacturing 00 Establishment%
Pu’er Tea 20000 Pu’er 100.Supply Chain 000.00 Pu’er City City Wholesale business 00 Establishment%
Shenliang 30150 100
Food 000.00 Pu’er City
Pu’er
City Manufacturing .00 Establishment%
Huizhou
Shenliang 50000 Huizhou Shenzhe
100.
00.00 City n City Wholesale business 00 EstablishmentFood %
Hong Hong 100
Xingye Food 500000.00 Kong Kong Wholesale business .00
Business combination
(China) (China) % under the same control
Explanation on shareholding ratio in subsidiaries different from ratio of voting right:
Explanation on the basis for controlling the investee with half or below voting rights held and without controlling the investee or
explanation on the basis for not controlling the investee with over half voting rights:
Explanation on the basis for control the important structured entities included in the consolidation scope:
Basis for determining whether the company is an agent or consignor:
Other explanation:
(2) Important non-wholly-owned subsidiary
In RMB
Shareholding ratio of Gains/losses Dividend announced toSubsidiary Ending equity ofminority shareholders attributable to minority distribute for minorityin the Period in the Period minority
Explanation on the situation where the shareholding ratio of minority shareholders is different from the voting right ratio of minority
shareholders:
Other explanation:
205深圳市深粮控股股份有限公司2024年年度报告全文
(3) Main financial information of the important non-wholly-owned subsidiaries
In RMB
Ending balance Opening balance
Subsi Curre Non- Total Current Non- Total Curre Non- Current Non- Totaldiary nt current assets liabiliti current liabilit nt current
Total
assets liabiliti current liabilitassets assets es liabilities ies assets assets es liabilities ies
In RMB
Current Period Last Period
Subsi Operating Net Total Cash flow from Operating Net Totaldiary Cash flow fromrevenue profit comprehensiveincome operation activity revenue profit
comprehensive
income operation activity
Other explanation:
(4) Significant restrictions on the use of enterprise group assets and the repayment of debts of the enterprise group
(5) Financial or other support offered to the structured entities included in consolidated financial statements
Other explanation:
2. Transactions where the share of owner’s equity in a subsidiary change while the subsidiary is still
controlled
(1) Explanation on changes in owner’s equity shares in subsidiary
(2) Impact of such transaction on equity of minority interests and owners’ equity attributable to parent company
In RMB
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Total of purchase cost/disposal consideration
Less: Subsidiary’s share of net assets calculated in terms of
the proportion of acquired/disposed equity
Difference
Including: Adjust capital reserve
Adjust surplus reserve
Adjust undistributed profit
Other explanation
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Shareholding ratio Accounting
Joint treatment on
venture/Associ Main place of Registration investment in
ated enterprise operation place
Business nature Directly Indirectly joint venture
and associated
enterprise
206深圳市深粮控股股份有限公司2024年年度报告全文
Zhuhai
Hengxing Feed
Industrial Co. Zhuhai Zhuhai
Aquatic fee and
animal fee 40.00% Equity method
Ltd.Description on situation where the shareholding ratio in joint ventures or associated enterprises is different from the ratio of voting
rights:
Description on the basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of
voting rights but having no significant influence.
(2) Main financial information of important joint venture
In RMB
Ending balance/Current period Opening balance/Last period
Current assets
Including: cash and
cash equivalents
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Shareholders’ equity
attributable to parent
company
Share of net assets
calculated in terms of
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of
internal trading
-- Other
Book value of equity
investment in joint
venture
Fair value of the equity
investment in joint
ventures with public
offers concerned
Operating revenue
Financial expenses
Income tax expenses
Net profit
Net profit of
discontinuing
operation
Other comprehensive
income
Total comprehensive
income
Dividends received
from joint venture in
the period
Other explanation
207深圳市深粮控股股份有限公司2024年年度报告全文
(3) Main financial information of important associated enterprises
In RMB
Ending balance/Current period Opening balance/Last period
Shenliang Intelligent Shenliang Intelligent
Zhuhai Hengxing Feed Wulian Equity Wulian Equity
Industrial Co. Ltd. Investment Fund
Zhuhai Hengxing Feed
Industrial Co. Ltd. Investment Fund(Shenzhen) Partnership (Shenzhen) Partnership
Enterprise (Limited) Enterprise (Limited)
Current assets 178447054.01 206533219.54 20506045.15
Non-current assets 20408430.87 22214230.53 34910923.94
Total assets 198855484.88 228747450.07 55416969.09
Current liabilities 89109413.45 115358256.12 170000.00
Non-current liabilities 28373574.24 29663266.41
Total liabilities 117482987.69 145021522.53 170000.00
Net asset 81372497.19 83725927.54 55246969.09
Minority interests
Equity attributable to
shareholder of parent 81372497.19 83725927.54 55246969.09
company
Share of net assets
measured in terms of 32548998.88 33490371.02 27082064.25
shareholding
Adjustment 175441.24 162764.46 -174.47
--Goodwill
--Unrealized profit of
internal trading
-- Other
Book value of equity
investment in 32724440.12 33653135.48 27081889.78
associated enterprise
Fair value of the equity
investment of
associated enterprise
with public offers
concerned
Operating revenue 316639653.00 501688075.92
Net profit -3241833.61 8657035.43 754712.78
Net profit of
discontinuing operation
Other comprehensive
income
Total comprehensive
income -3241833.61 8657035.43 754712.78
Dividends received
from associated
enterprise in the year
Other explanation
(4) Summary of financial information of unimportant joint venture and associated enterprises
In RMB
Ending balance/Current Period Opening balance/Last Period
Joint venture:
Amount calculated in terms of
shareholding ratio
Associated enterprise:
Total book value of investment 12632448.32 13273901.22
Total amount calculated in terms of
208深圳市深粮控股股份有限公司2024年年度报告全文
shareholding ratio
--Net profit -641452.90 -304756.85
--Total comprehensive income -641452.90 -304756.85
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or associated
enterprise
(6) Excess loss occurred in joint venture or associated enterprise
In RMB
Derecognized losses not
Joint venture/Associated Accumulated derecognized recognized in the Period (or Accumulated derecognized
enterprise losses net profit enjoyed in the losses at period-end
Period)
Other explanation
(7) Unrecognized commitment related to joint venture investment
(8) Intangible liabilities related to joint venture or associated enterprise investment
4. Major joint operation
Name Main place ofoperation Registration place Business nature
Shareholding ratio/ shares enjoyed
Directly In-directly
Explanation on situation where shareholding ratio or shares enjoyed in joint operation is different from voting right ratio in joint
operation:
Explanation on the classification basis of joint operation in case the entity of joint operation is the separate entity:
Other explanation
5. Equity in structured entities not included in the scope of consolidated financial statements
Explanation:
6. Other
XI. Government grant
1. Government grant recognized at report ending in terms of amount receivable
□Applicable□Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable□Not applicable
2.Liabilities involved with government grant
□Applicable □Not applicable
In RMB
209深圳市深粮控股股份有限公司2024年年度报告全文
Current Amount
increase in booked into Amount carried
Other
Item Opening balance government non-business forward to other
changes in Asset/income
income in income current
Ending balance related
grant current period period
Deferred
income 82819873.24 4057114.25 7673371.50 79203615.99 Asset related
3. Government grant booked into current gains/losses
□Applicable □Not applicable
In RMB
Accounting title Current period Last period
Other revenue 10243944.62 14663529.88
Other explanation:
XII. Risk related with financial instrument
1. Various risks arising from financial instruments
The company’s main financial instruments include monetary funds notes receivable accounts receivable other receivables other
current assets trading financial assets other non-current financial assets accounts payable other payables short-term borrowings
non-current liabilities due within one year and lease liabilities. The detailed information of various financial instruments has been
disclosed in the relevant notes. The risks associated with these financial instruments as well as the risk management policies adopted
by the company to reduce these risks are described below. The management of the company manages and monitors these risk
exposures to ensure that the aforementioned risks are controlled within a limited range.
(1) Risk management objectives and policies
The main risks caused by the company’s financial instruments are credit risk liquidity risk and market risk (including exchange rate
risk interest rate risk and commodity price risk).The goal of the company’s risk management is to strike an appropriate balance between risk and return striving to reduce the adverse
impact of financial risks on our financial performance. Based on this risk management objective the company has developed a risk
management policy to identify and analyze the risks we face set appropriate acceptable levels of risks and design corresponding
internal control procedures to monitor our risk level. The company will regularly review these risk management policies and related
internal control systems to adapt to market conditions or changes in our business activities. The internal audit department of the
company also regularly or randomly checks whether the implementation of the internal control system complies with risk
management policies.The board of directors is responsible for planning and establishing the company’s risk management structure formulating the
company’s risk management policies and related guidelines and supervising the implementation of risk management measures. The
company has developed risk management policies to identify and analyze the risks we face. These risk management policies clearly
define specific risks and cover various aspects such as market risk credit risk and liquidity risk management. The company regularly
evaluates changes in the market environment and our business activities to determine whether to update our risk management
policies and systems. The risk management of the company is carried out by relevant departments in accordance with the policies
approved by the board of directors. These departments identify evaluate and mitigate related risks through close cooperation with
other business departments of the company.
210深圳市深粮控股股份有限公司2024年年度报告全文
the company diversifies investment and business portfolio appropriately to diversify financial instrument risks and reduces risks
concentrated in a single industry specific regions or specific counterparties by formulating corresponding risk management policies.
1) Credit risk
Credit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractual obligations.Credit risks of the Company arises mainly from monetary funds note receivable account receivable other receivable.The company’s bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks and we
anticipate that there is no significant credit risk associated with bank deposits.For notes receivable accounts receivable and other receivables the company has established relevant policies to control credit risk
exposure. The company evaluates the credit qualifications of customers based on their financial status credit records and other
factors such as current market conditions and sets corresponding credit periods. The company will regularly monitor customer credit
records. For customers with poor credit records we will use written reminders shorten or cancel credit periods etc. to ensure that our
overall credit risk is within a controllable range.The debtors of the company’s accounts receivable are customers distributed across different industries and regions. the company
continuously conducts credit assessments on the financial condition of accounts receivable and purchases credit guarantee insurance
when appropriate.The maximum credit risk exposure that the company is exposed to is the carrying amount of each financial asset on the balance sheet.the company has not provided any other guarantees that may expose the company to credit risk.Among the accounts receivable of the company the accounts receivable of the top five customers account for46.79% of the total
accounts receivable of the company (2023: 37.35%); Among the other receivables of the company the other receivables of the top
five companies with outstanding amounts account for 45.75% of the total other receivables of the company (2023: 41.44%).On the balance sheet date the book value of the company’s debt investments is listed as follows according to the items in the
financial statements:
2) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds encountered by the company when fulfilling its obligations to settle cash or
other financial assets.When managing liquidity risk the company maintains cash and cash equivalents that the management deems sufficient and monitors
them to meet the company’s operational needs and reduce the impact of cash flow fluctuations. The management of the company
monitors the use of bank loans and ensures compliance with loan agreements. Simultaneously obtain commitments from major
financial institutions to provide sufficient reserve funds to meet both short-term and long-term funding needs.the company raises operating funds through funds generated from business operations and bank loans. At the end of the period the
unused bank loan amount of the company was 8798534600.00 yuan (as of the end of last year: 9118765500.00 yuan).At the end of current period the financial liabilities and off-balance sheet guarantee items held by the company were analyzed based
on the maturity period of undiscounted remaining contract cash flows (in 10000 yuan):
Current ending balance
Item
Within 1 year 1-3 years Over 3 years Total
Financial liabilities:
Short-term borrowing 148460.51 148460.51
211深圳市深粮控股股份有限公司2024年年度报告全文
Current ending balance
Item
Within 1 year 1-3 years Over 3 years Total
Accounts payable 39278.71 39278.71
Other accounts payable 26963.35 26963.35
Liabilities held for sale 4292.74 4292.74
Non-current liabilities maturing within one year 804.26 804.26
Lease liabilities - 4838.35 2970.10 7808.45
Total of financial liabilities or contingent
liabilities 219799.57 4838.35 2970.10 227608.02
At the end of last period the financial liabilities and off-balance sheet guarantee items held by the company were analyzed based
on the maturity period of undiscounted remaining contract cash flows (in 10000 yuan):
Last ending balance
Item
Within 1 year 1-3 years Over 3 years Total
Financial liabilities:
Short-term borrowing 122346.24 122346.24
Accounts payable 33616.52 33616.52
Other accounts payable 27768.76 27768.76
Liabilities held for sale - financial liabilities 5789.03 5789.03
Non-current liabilities maturing within one year 2280.55 2280.55
Lease liabilities 3692.57 81.93 3774.50
Total of financial liabilities or contingent
liabilities 191801.10 3692.57 81.93 195575.60
The amount of financial liabilities disclosed in the above table represents undiscounted contract cash flows which may differ from
the carrying amount in the balance sheet.The maximum guarantee amount of a signed guarantee contract does not represent the amount to be paid.
3) Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair value or future cash flows of financial instruments
due to market price changes including interest rate risk exchange rate risk and other price risks.Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in
market interest rates. Interest rate risk can arise from both confirmed interest-bearing financial instruments and unconfirmed financial
instruments (such as certain loan commitments).Financial liabilities with floating rate expose the company to cash flow interest rate risk while financial liabilities with fixed rate
expose the company to fair value interest rate risk. The company determines the relative ratio of fixed and floating rate contracts
based on the market environment at that time and maintains an appropriate combination of fixed and floating rate instruments
through regular review and supervision.The company closely monitors the impact of interest rate changes on our interest rate risk. The company currently does not adopt an
interest rate hedging policy. But the management is responsible for monitoring interest rate risk and will consider hedging significant
interest rate risks when necessary. An increase in interest rates will increase the cost of new interest-bearing debt and the interest
212深圳市深粮控股股份有限公司2024年年度报告全文
expenses on floating interest-bearing debt that the company has not yet paid off and will have a significant adverse impact on the
company's financial performance. Management will make timely adjustments based on the latest market conditions which may
involve arranging interest rate swaps to reduce interest rate risk.The interest-bearing financial instruments held by the company are as follows (unit: 10000 yuan):
Item Current amount Last amount
Financial instrument with fixed rate
Financial liability 148460.51 124683.95
Including: short-term borrowing 148460.51 122346.26
Assets held for sale - short-term borrowing - 2337.69
Total 148460.51 124683.95
(4) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in
foreign exchange rates. Exchange rate risk may arise from financial instruments denominated in foreign currencies other than the
accounting base currency.The exchange rate risk mainly lies in the impact of foreign exchange rate fluctuations on the company's financial position and cash
flows. In addition to the subsidiaries established in Hong Kong holding assets denominated in Hong Kong dollars as the settlement
currency the company has only a small amount of investment business in the Hong Kong market. The proportion of the company’s
foreign currency-denominated assets and liabilities in the overall assets and liabilities is not significant. Therefore the company
believes that the exchange rate risk it faces is not significant.The company closely monitors the impact of exchange rate changes on its exchange rate risk. Currently the company has not taken
any measures to avoid exchange rate risks. However the management is responsible for monitoring exchange rate risks and will
consider hedging significant exchange rate risks when necessary.At the end of the period for the company's monetary funds denominated in foreign currencies assuming that the RMB appreciates or
depreciates by 10% against foreign currencies (mainly the USD and HKD) while other factors remain unchanged it will cause an
increase or decrease of approximately RMB 716700.00 in both the shareholders’ equity and net profit of the company.
(2) Capital management
The goal of the company’s capital management policy is to ensure that we can continue to operate provide returns to shareholders
and benefit other stakeholders while maintaining the optimal capital structure to reduce capital costs.In order to maintain or adjust its capital structure the company may adjust its financing methods adjust the amount of dividends paid
to shareholders return capital to shareholders issue new shares and other equity instruments or sell assets to reduce debt.The company monitors its capital structure based on the asset liability ratio (total liabilities divided by total assets). At the end of the
current period the company’s asset liability ratio was 36.21% (34.06% at the end of the last period).
2.Hedge
(1) Risk management for hedge business
□Applicable□Not applicable
213深圳市深粮控股股份有限公司2024年年度报告全文
(2) The company conducted eligible hedging business and applied hedging accounting
In RMB
Book value related to Adjustment of Sources of hedge Impact of hedge
hedged items and accumulated fair value effectiveness and hedge accounting on the
Item hedging instruments hedging included in the ineffectiveness company’s financial
recognized book value
statements
of hedged items
Type of hedge risk
Type of hedge
Other explanation
(3) The company carried out hedging business for risk management and expected to achieve risk management goals but
has not applied hedge accounting
□Applicable□Not applicable
3.Financial assets
(1) By transfer manner
□Applicable ?Not applicable
(2) Financial assets derecognized due to transfer
□Applicable ?Not applicable
(3) Financial assets which are transferred and involved continuously
□Applicable ?Not applicable
Other explanation
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured at fair value
In RMB
Item Ending fair valueFirst-order Second-order Third-order Total
I. Sustaining measured
at fair value -- -- -- --
Other non-current
financial assets 57500.00 57500.00
II. Non-sustaining
measured at fair value -- -- -- --
214深圳市深粮控股股份有限公司2024年年度报告全文
2. Basis for recognizing the market price of items sustaining and non-sustaining measured at fair value
on first-order
3.Valuation technique qualitative and quantitative information on major parameters for items
sustaining and non-sustaining measured at fair value on second-order
4.Valuation technique qualitative and quantitative information on major parameters for items
sustaining and non-sustaining measured at fair value on third-order
Content Ending fair value Valuation technology Unobservable input value
Equity instrument investment
Non-listed equity investment 57500.00 Market method Investment cost
5.Adjustment information and sensitivity analysis of unobservable parameters for items sustaining and
non-sustaining measured at fair value on third-order
6. Reasons for conversion and policies for conversion time point of items sustaining measured at fair
value in case there is conversion between all levels
7. Changes of valuation technique in the Period and reasons
8. Financial assets and liabilities not measured at fair value
The financial assets and financial liabilities measured at amortization cost of the company mainly include:
monetary funds notes receivable accounts receivable other receivables short-term borrowings accounts
payable other payables etc. The book value of financial assets and financial liabilities not measured at fair
value differs very little from their fair value.
9. Other
XIV. Related party and related transactions
1. Parent company
Registr Registe Ratio of Ratio of voting
Parent company ation Business nature red shareholding on right on the
place capital the Company Company
Shenzhen Shenzh Food distribution platform and safety infrastructure 5000Agricultural Power en construction domestic trade industrial investment million 63.79% 72.02%Group Co. Ltd. and operation etc yuan
Explanation on parent company of the Company
The ultimate controller of the Company is Shenzhen Municipal People’s Government State-owned Assets Supervision &
Administration Commission
Other explanation:
215深圳市深粮控股股份有限公司2024年年度报告全文
2. Subsidiaries of the Company
For more details of subsidiaries of the Company please refer to “Note VII.1”.
3. Joint venture and associated enterprise of the Company
For more details of important joint venture and associated enterprise of the Company please refer to “Note VII (4)”.Other joint venture and associated enterprise that have related transaction with the Company in the Period or that have balance
with the Company arising from transaction in last period are described as follows:
Joint venture/Associated enterprise Relationship with the enterprise
Other explanation
4.Other related party
Other related party Relationship between other related party and the company
Shenzhen Agricultural Products Group Co. Ltd Holding subsidiary of parent company
Shenzhen Zhenchu Supply Chain Co. Ltd. Holding subsidiary of parent company
Guangxi Higreen Agricultural Products International Logistics
Co. Ltd. Holding subsidiary of parent company
Shenzhen Higreen International Agricultural Products Logistic
Management Co. Ltd Holding subsidiary of parent company
Chengdu Agricultural Products Center Wholesale Market Co.Ltd. Holding subsidiary of parent company
Huizhou Higreen Agricultural Products International Logistics
Co. Ltd. Holding subsidiary of parent company
Shenzhen Medical Materials Co. Ltd. Holding subsidiary of parent company
Shenzhen Shennong Land Co. Ltd. Holding subsidiary of parent company
Shenzhen Shennong Kitchen Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Subsidiary of the Company’s shareholders controlled by the
Ltd ultimate controlling party
Zhanjiang Haitian Aquatic Feed Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Shenzhen Higreen Real Estate Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Shenzhen Southern Agricultural Products Logistics Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Shenzhen Agricultural Products Small Loan Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Shenzhen Agricultural Products E-commerce Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Zhanjiang Haitian Aquatic Feed Co. Ltd Subsidiary of the Company’s shareholders controlled by theultimate controlling party
Directors Managers Chief Financial Officers and Board
Secretaries Key executives
Yao Jicheng Minority shareholder of controlling subsidiary
Zhang Tiejun Spouse of Yao Jicheng a minority shareholder of a controlling
subsidiary
Wang Zhikai Legal representative and chairman
Hu Xianghai Director and GM
Zheng Xiangpeng Director
Lu Yuhe Director and CFO
Zhao Rubing Independent director
Bi Weimin Independent director
Liu Haifeng Independent director
Zheng Shengqiao Employee supervisor
216深圳市深粮控股股份有限公司2024年年度报告全文
Ma Zenghai Employee supervisor
Chen Xiaohua Deputy GM and Secretary of the Board of Directors
Shen Hua Deputy GM
Xiao Hui Deputy GM
Du Jianguo Deputy GM
Ni Yue Former director
Wang Huimin Former chairman of the Supervisory Board
Dai Bin Former deputy GM
Meng Xiaoxian Former deputy GM
Other explanation:
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party Related transaction Current Period Approved Whether more Last Period
content transaction limit than the
transaction limit
(Y/N)
Shenzhen Information software
Shenyuan Data development 8670750.00 8670750.00 N 16241326.17
Tech. Co. Ltd
Shenzhen Procurement of goods
Shennong Kitchen 2844421.97 2844421.97 2270681.12
Co. Ltd
F.Q.T 73260.00 73260.00
Xi'an Moer
Agricultural 17286.56 17286.56
Products Co. Ltd
Shenzhen Warehousing
Shenliang Cold services/Transportation
Transport Co. services N 297749.51
Ltd.Shenzhen Warehousing service
Municipal
People’s
Government State-
owned Assets 23510737.60
Supervision &
Administration
Commission
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current period Last period
content
Shenzhen Zhenchu Supply Grain and oil sales asset 1066771.53 1769540.05
Chain Co. Ltd. management tea sales
Huizhou Higreen Agricultural Product sales 533883.17 0.00
Products International
Logistics Co. Ltd.Shenzhen Zhenpin Group Co. Product sales 429377.89
Ltd
Shenzhen Shennong Kitchen Grain and oil sales tea sales 253069.73 767892.60
Co. Ltd
Shenzhen Guangming Higreen Product sales 99980.00
Agricultural Products Industry
Development Co. Ltd
217深圳市深粮控股股份有限公司2024年年度报告全文
Shenzhen Shenliang Cold Grain sales warehousing 98874.41 1006521.86
Transport Co. Ltd. services tea sales
Chengdu Agricultural Product sales 75823.00
Products Center Wholesale
Market Co. Ltd.Shenzhen Higreen Product sales 50499.00
Agricultural Products Food
Import and Export Trade
Service Co. Ltd
Shenzhen Shennong Kitchen Product sales 48349.65
Co. Ltd
Xi'an Moer Agricultural Product sales 38867.25
Products Co. Ltd
Shenzhen Agricultural Science Product sales 35815.00
and Technology Innovation
Group Co. Ltd
Changzhou Shenbao Chacang Product sales 28301.89
E-business Co. Ltd.Guangxi Higreen International Product sales 25911.50 16481.42
Agricultural Products Logistic
Management Co. Ltd
Shenzhen Agricultural Product sales 25560.85 26782.29
Products Group Co. Ltd
Shenzhen Food Materials Product sales 24540.51 3070581.93
Group Co. Ltd
Shenzhen Duoxi Equity Product sales and property 16322.90 20754.69
Investment Fund Management management
Co. Ltd.Shenzhen Cabbage Product sales 10364.60
Technology Co. Ltd
Shenzhen Southern Product sales 2591.15
Agricultural Products
Logistics Co. Ltd
Shenzhen Agricultural Product sales 282.36
Products Small Loan Co. Ltd
Zhanjiang Changshan Property management 90650.80
(Shenzhen) Ecological
Aquaculture Co. Ltd
Zhanjiang Haitian Aquatic Property management 33934.65
Feed Co. Ltd
Shenzhen Shenyuan Data Product sales 42503.14
Tech. Co. Ltd.Shenzhen Higreen Product sales 12361.06
International Agricultural
Products Logistic
Management Co. Ltd.Explanation on goods purchasing labor service providing and receiving
The related sales of the company are priced on the basis of open bidding and fair market prices. The related procurement of the
company is priced on the basis of open bidding and fair market prices.
(2) Related trusteeship management/contract & entrust management/outsourcing
Trusteeship management/contract:
In RMB
Client/ Truste Type of Start date of End date of Pricing basis for Earnings of trusteeship
Contrac e/Cont trusteeship trusteeship trusteeship earnings of trusteeship management/contract
t issuer ractor management/con management/co management/co recognized in currenttract asset ntract ntract management/contract period
218深圳市深粮控股股份有限公司2024年年度报告全文
Related trusteeship management/contract:
Entrusted management/outsourcing:
In RMB
Start
Type of date of End
Client/contra Trustee/Contr entrusted/o entrust date of Pricing basis ofentrust entrust/outsourcing Entrust/outsourcing expensect issuer actor utsourced ed/out
assets source ed/outs expense
recognized in current period
d ourced
Related management/ outsourcing:
(3) Related lease
The company acts as the lessor:
In RMB
Lessee Assets Lease income recognized in Lease income recognized intype current period last period
Shenzhen Shenyuan Data Technology Co. ltd. Lease ofhouses 407339.97 523988.52
Zhenpin Market Operation Technology Co. Ltd. Lease ofhouses 13609.00 244577.19
The company acts as the lessee:
In RMB
Variable lease
Simplified rental fees payments not Interest expense
for short-term leases included in the Rent paid on lease Increased right-
and low value asset measurement of liabilities of- use assets
Lessor Assetstype leases (if applicable) lease liabilities
assumed
(if applicable)
Current Last Curren Last Current Last Curren Last Curren Last
period period t perioperiod d period period
t perio t perio
period d period d
Shenzhen
Higreen
Internationa
l Lease
Agricultural of 31542.0 31542.0 31542.00 31542.0
Products house 0 0 0
Logistic s
Managemen
t Co. Ltd
Shenzhen
Agricultural Lease
Power of 105600.0
Group Co. house 0
0.00
Ltd. s
Explanation on related lease
(4) Related guarantee
The Company acts as the guarantor
In RMB
Secured party Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled
The Company acts as the secured party
In RMB
219深圳市深粮控股股份有限公司2024年年度报告全文
Guarantor Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled
Explanation on related guarantee:
The company has no related guarantee.
(5) Related party’s borrowed funds
In RMB
Related party Borrowing amount Starting date Maturity date Note
Borrowing
Lending
(6) Assets transfer and debt reorganization of related party
In RMB
Related party Content of related transaction Current period Last period
(7) Remuneration of key executives
In RMB
Item Current period Last period
Remuneration of key executives 9899300.00 10507400.00
(8) Other related transaction
6. Accounts receivable from /payable to related parties
(1) Accounts receivable from related parties
In RMB
Item Related party Ending balance Opening balance
Book balance Bad debtsreserve Book balance
Bad debts
reserve
Account
receivable Shenzhen Shennong Kitchen Co. Ltd 128634.65 1286.35 272089.00 2720.89
Account
receivable Hunan Higreen Supply Chain Co. Ltd 104884.00 1048.84
Account
receivable Shenzhen Zhenchu Supply Chain Co. Ltd. 92854.00 928.54
Account Shenzhen Higreen Agricultural Products
receivable Food Import and Export Trade Service 46769.40 467.69Co. Ltd
Account Shenzhen Agricultural Power Group Co.receivable Ltd. 58028.00 580.28 15884.00 158.84
Account
receivable Shenzhen Zhenpin Group Co. Ltd 36784.00 367.84
Account Guangxi Higreen International
receivable Agricultural Products Logistic 29280.00 292.80Management Co. Ltd
Account Tianjin Higreen Agricultural Products
receivable Logistics Co. Ltd 23424.00 234.24
Account Shenzhen Agricultural Science and
receivable Technology Innovation Group Co. Ltd 9900.00 99.00
220深圳市深粮控股股份有限公司2024年年度报告全文
Account Shenzhen Agricultural Products Small
receivable Loan Co. Ltd 5857.00 58.57
Account Shenzhen Shennong Revitalization Rural
receivable Industry Development Co. Ltd 1212.60 12.13
Account Shenzhen Agricultural Products Group
receivable Co. Ltd 392.00 3.92 4656.00 46.56
Account Huizhou Higreen Agricultural Products
receivable International Logistics Co. Ltd. 204.00 2.04 23220.00 232.20
Account Huaiji County Shennong Modern
receivable Agriculture Development Co. Ltd 104.00 1.04
Account
receivable Shenzhen Zhenchu Supply Chain Co. Ltd. 437388.10 4420.95
Account Shenzhen Shenliang Cold Transport Co.receivable Ltd. 9882.80 98.83
Account Shenzhen Duoxi Equity Investment Fund
receivable Management Co. Ltd. 1123.20
Other account Changzhou Shenbao Chacang E-business
receivable Co. Ltd. 24138742.46 22187944.18 24608742.46 22187644.18
Other account Shenzhen Shichumingmen Catering
receivable Management Co. Ltd. 1908202.67 1908202.67 1908202.67 1908202.67
Other account
receivable Shenzhen Zhenpin Group Co. Ltd 1718711.71 17187.12
Other account
receivable Shenzhen Shenyuan Data Tech. Co. Ltd 248742.14 506.29 466800.00 4668.00
Other account Shenzhen Higreen International
receivable Agricultural Products Logistic 50000.00 50000.00
Management Co. Ltd
Other account Shenzhen Agricultural Power Group Co.receivable Ltd. 26400.00 1001000.00
Other account Zhenpin Market Operation Technology
receivable Co. Ltd. 13609.00
Other account Zhanjiang Changshan (Shenzhen)
receivable Ecological Aquaculture Co. Ltd 5520.00 5520.00 5520.00 5520.00
Other account Changsha Mawangdui Agricultural
receivable Products Co. Ltd. 5000.00
Other account Chengdu Agricultural Products Center
receivable Wholesale Market Co. Ltd. 4000.00
Other account Tianjin Higreen Agricultural Products
receivable Logistics Co. Ltd 3000.00
Other account
receivable Yao Jicheng 463085.35 1702.29
Other account Shenzhen Shenliang Cold Transport Co.receivable Ltd. 10000.00
Other account Shenzhen Duoxi Equity Investment Fund
receivable Management Co. Ltd. 2000.00
(2) Accounts payable to related parties
In RMB
Ending book Opening book
Item Related party
balance balance
Account
Shenzhen Shenyuan Data Tech. Co. Ltd 16350.00 87671.67
payable
Account Shenzhen Shennong Revitalization Rural Industry Development Co.
40880.51
payable Ltd
Account Shenzhen Higreen Agricultural Products Food Import and Export
31680.00
payable Trade Service Co. Ltd
Account
Huaiji County Shennong Modern Agriculture Development Co. Ltd 24804.00
payable
Account
Hunan Higreen Supply Chain Co. Ltd 2545.20
payable
Account Xi'an Moer Agricultural Products Co. Ltd 9444.00
221深圳市深粮控股股份有限公司2024年年度报告全文
payable
Account Ningxia Higreen International Agricultural Products Logistic
967.00
payable Management Co. Ltd
Account Shenzhen Municipal People’s Government State-owned Assets
23263563.6023263563.60
payable Supervision & Administration Commission
Other account
Shenzhen Shennong Kitchen Co. Ltd 296063.14 275000.00
payable
Other account
Shenzhen Shenyuan Data Tech. Co. Ltd 65400.00 1727021.67
payable
Other account
Zhanjiang Haitian Aquatic Feed Co. Ltd 20000.00 20000.00
payable
Other account
Shenzhen Agricultural Power Group Co. Ltd. 146162941.72 146162941.72
payable
Other account
Shenzhen Duoxi Equity Investment Fund Management Co. Ltd. 41486.00
payable
Other account
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Ltd 8069454.17
payable
7. Related party commitment
8. Other
XV. Share-based payment
1. Overall situation of share-based payment
□ Applicable □ Not applicable
2. Share-based payment settled by equity
□ Applicable □ Not applicable
3. Share-based payment settled by cash
□ Applicable □ Not applicable
4.Share-based payment expense in current period
□Applicable□Not applicable
5. Modification and termination of share-based payment
Nil
6. Other
Nil
222深圳市深粮控股股份有限公司2024年年度报告全文
XVI. Commitment or contingency
1. Important commitments
Important commitments on balance sheet date
As of December 31 2024 there are no commitments that the company should disclose
2.Contingency
(1) Contingency on balance sheet date
(1) Contingent liabilities arising from pending litigation and arbitration and their financial impact
Target
SN Plaintiff Defendant Cause Court (’0000 Progress
yuan)
Nanshan District Housing and the Futian District
1 Urban-Rural Development SZCG Contract dispute People’s Court of
Bureau lawsuit Shenzhen Guangdong
389.88 Pending
Province
Guangzhou Maritime
Zhonggang Construction Group Construction Court of Haizhu
2 Co. Ltd (Zhonggang Dongguan Logistics engineering
Construction) contract dispute
District Guangzhou 2873.74 Pending
lawsuit City GuangdongProvince
Zhongji the Futian District
3 GuoliangTrade(Liaoning) Co. Hualian Company SZCG Disputes over People’s Court of
Ltd (Zhongji Guoliang) SZCH sales contracts Shenzhen Guangdong
297.31 Pending
Province
International Food
Industrial Park Construction The First People’s
4 Peng Miaosheng Guangdong Yongshen engineering Court of Dongguan
Construction Engineering contract dispute City Guangdong
453.50 Pending
Co. Ltd Xu Jianqiang lawsuit Province
* Contract dispute between Nanshan District Housing and Urban-Rural Development Bureau and Shenzhen Cereals Group
In September 2022 the Nanshan District Housing and Urban-Rural Development Bureau initiated legal proceedings against SZCG
seeking an order for SZCG to fulfill its obligation by issuing a valid tax-inclusive invoice in the amount of 3898800.00 yuan. In
January 2024 the Futian District People's Court of Shenzhen issued a first-instance judgment requiring SZCG to issue the
aforementioned tax-inclusive invoice within ten days from the effective date of the judgment. SZCG has filed an appeal and the
case is still under trial.* Dispute concerning the construction contract between Zhonggang Construction and Dongguan Logistics
In May 2024 Zhonggang Construction filed a lawsuit seeking payment of 28737400.00 yuan from Dongguan Logistics which
includes project funds interest and penalties for delay. In July 2024 the Guangzhou Maritime Court rendered a first-instance
judgment in favor of Zhonggang Construction ordering Dongguan Logistics to pay RMB 15213100 in project funds plus
interest. Both parties have filed appeals with the Guangdong Provincial High Court and the case is pending a hearing.* Dispute regarding the sales contract between Zhongji Guoliang Hualian Grain & Oil SZCG and Shenliang Holdings
In July 2023 Zhongji Guoliang initiated legal proceedings seeking the refund of 2725400.00 yuan from Hualian Company in
addition to compensation for overdue losses amounting to 247700.00 yuan bringing the total to 2973100.00 yuan. In April 2024
223深圳市深粮控股股份有限公司2024年年度报告全文
the Futian District People’s Court of Shenzhen issued a judgment ordering Hualian Company to refund 2011300.00 yuan to
Zhongji Guoliang along with interest. Both Zhongji Guoliang and Hualian Company have appealed the decision. The second-
instance hearing was held on November 2024 at the Shenzhen Municipal Intermediate People’s Court in Guangdong Province
and the judgment is still pending.* Dispute regarding the construction contract between Peng Miaosheng International Food Yongsheng Construction and Xu
Jianqiang
In October 2023 Peng Miaosheng filed a lawsuit against Xu Jianqiang Yongsheng Construction and the Dongguan International
Food Industry Park seeking the payment of 4535000.00 yuan which includes 4097300.00 yuan for construction labor costs and
437700.00 yuan in interest. Peng Miaosheng requested that Yongsheng Construction be jointly liable for the payment of the full
amount and that the Food Industry Park bear responsibility for paying the outstanding project funds of 4097300.00 yuan
including interest. The Food Industry Park has argued that the dispute is unrelated to its responsibilities. The case is currently
under judicial review.
(2) Other contingencies
As of December 31 2024 there are no other contingencies that the company should disclose.
(2) If the Company has no important contingency need to disclosed explain reasons
The Company has no important contingency that need to disclose.
3.Other
XVII. Events after balance sheet date
1. Important non-adjustment matters
In RMB
Reasons of failing to estimate the
Item Content Impact on financial status and operation results
impact
2.Profit distribution
3. Sales return
4. Other events after balance sheet date
On December 30 2024 due to the construction needs of infrastructure supporting facilities projects in Huicheng District Huizhou
City Huizhou Shenbao signed the Compensation Agreement for the Recovery of State-owned Land Use Rights with the Natural
Resources Bureau of Huicheng District Huizhou City. The latter agreed to recover the state-owned land use rights of 6 pieces of
land totaling 126531 square meters owned by Huizhou Shenbao in Dongya Village Ruhu Town Huicheng District; the Natural
Resources Bureau of Huicheng District Huizhou City shall pay the total land compensation of 77590200 yuan in a lump sum to
Huizhou Shenbao's account before January 21 2025. On January 7 2024 Huizhou Shenbao received the above-mentioned land
use right compensation from the Natural Resources Bureau of Huicheng District Huizhou City. Up to now the procedures for
canceling the land ownership are still being handled.
224深圳市深粮控股股份有限公司2024年年度报告全文
Except for the above matters as of April 29 2025 the Company has no other post - balance sheet events that should be disclosed.XVIII. Other important events
1. Previous accounting errors correction
(1) Retrospective restatement
In RMB
Items impact during every comparative
Content of accounting error correction Procedures Accumulated impact
period
(2) Prospective application
Content of accounting error correction Approval procedure Reasons for adopting the prospective applicable method
2. Debt restructuring
3. Assets exchange
(1) Exchange of non-monetary assets
(2) Other assets exchange
4. Pension plan
5. Discontinuing operation
In RMB
Item Revenue Expenses Total Income tax Net Profit of discontinuing operation attributable to owners ofprofit expenses profit parent company
Other explanation
6. Branch
(1) Recognition basis and accounting policy for reportable branch
(2) Financial information for reportable branch
In RMB
Item Offset between branches Total
225深圳市深粮控股股份有限公司2024年年度报告全文
(3) Explain reasons in case the Company has no branches or is unable to disclose total assets and
liabilities of segments
(4) Other explanation
7. Other major transaction and events makes influence on investor’s decision
8. Other
XIX. Notes to main items of financial statements of parent company
1. Account receivable
(1) By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 116870897.62 65714145.99
1-2 years 73272.00
Over 3 years 37305.68 37305.68
Over 5 years 37305.68 37305.68
Total 116981475.30 65751451.67
(2)Accrued bad debts reserve
In RMB
Ending balance Opening balance
Categor Book value Bad debts reserve
y Book value
Book value Bad debts reserve
Book value
Amount Ratio Amount Accrued ratio Amount Ratio Amount
Accrue
d ratio
Accoun
t
receiva
ble with
bad
debts 28453.08 0.02% 28453. 100.00 0.00 28453.08 0.04% 28453. 100.00 0.00
reserve 08 % 08 %
accrual
on a
single
basis
Includin
g:
Accoun
t
receiva
ble with
bad
debts 116953022 99.98 14409. 0.01% 116938612 65722998 99.96 8442.6 65714555
reserve .22 % 28 .94 .59 % 5
0.01%.94
accrual
on
portfoli
o
226深圳市深粮控股股份有限公司2024年年度报告全文
Includin
g:
Portfoli
o of
sales 82124.60 0.07% 14409. 17.5528 % 67715.32 144909.60 0.22%
8442.6
5 5.83% 136466.95receiva
ble
Object-
specific 116870897 99.91 0.00 0.00% 116870897 65578088 99.74portfoli .62 % .62 .99 % 0.00 0.00%
65578088.99
o
Total 116981475 100.00 42862..30 % 36 0.04%
11693861265751451100.0036895..94.67%730.06%
65714555.94
Accrual of bad debts reserve on single item: 1
In RMB
Opening balance Ending balance
Name
Book balance Bad debtsreserve Book balance
Bad debts
reserve Accrual ratio Accrual reason
Reasonably
Accrual of bad provision
debts reserve 28453.08 28453.08 28453.08 28453.08 100.00% according to
on single item enterpriseaccounting
standards
Total 28453.08 28453.08 28453.08 28453.08
Make bad debts reserve in terms of portfolio:1
In RMB
Name Ending balance
Book balance Bad debts reserve Accrual ratio
Portfolio of sales receivable 82124.60 14409.28 17.55%
Object-specific portfolio 116870897.62 0.00 0.00%
Total 116953022.22 14409.28
Explanation on the basis to determine such portfolio:
If the bad debts reserve of account receivable is made in accordance with the general model of expected credit losses:
□Applicable□Not applicable
(3)Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Collected orreversal Written-off Other
Bad debts reserve of
account receivable 36895.73 6350.24 383.61 42862.36
Total 36895.73 6350.24 383.61 42862.36
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts
reserve
(4) Account receivable charged off in the period
Unit: RMB
227深圳市深粮控股股份有限公司2024年年度报告全文
Item Amount charged off
Including major account receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of Resulted by relatedoff charged off transaction (Y/N)
Explanation on account receivable charged off:
(5)Top five receivables and contract assets at ending balance by arrears party
In RMB
Ending
Ending balance Ending balance balance of Ratio in total ending Ending balance of bad debt
Enterprise of account of contract account balance of account reserves for account receivable
receivable assets receivable receivables and contract and impairment provision ofand contract assets contract assets
assets
2.Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 2123872937.65 1624337855.63
Total 2123872937.65 1624337855.63
(1) Interest receivable
1) By category
In RMB
Item Ending balance Opening balance
2) Important overdue interest
Whether impairment
Borrower Ending balance Overdue time Overdue causes occurs and its
judgment basis
Other explanation:
3)Accrued bad debts reserve
□Applicable□Not applicable
4)Bad debts reserve accrued collected or reversal
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other
228深圳市深粮控股股份有限公司2024年年度报告全文
Bad debts reserve
Total
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts
reserve
Other explanation:
(5) Interest receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major interest receivable charged off:
Unit: RMB
Enterprise Nature Amount charged off Reason for charged Procedure of Resulted by relatedoff charged off transaction (Y/N)
Explanation on interest receivable charged off:
Other explanation:
(2) Dividend receivable
1) Category
In RMB
Item (or the invested entity) Ending balance Opening balance
2) Important dividend receivable with aging over one year
In RMB
Item (or investee) Ending Account Reasons for not Whether impairment occurs and its judgmentbalance aging collection basis
3) Accrued bad debts reserve
□Applicable□Not applicable
4) Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other
Important bad debts reserve collected or reversal:
In RMB
Enterprise Collected or reversal Reason for reversal Manner of reversal Basis and rationality to
define the accrued ratio
229深圳市深粮控股股份有限公司2024年年度报告全文
of original bad debts
reserve
Other explanation:
5) Dividend receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major dividend receivable charged off:
Unit: RMB
Reason for charged Procedure of charged Resulted by related
Enterprise Nature Amount charged off
off off transaction (Y/N)
Explanation on those charged off:
Other explanation:
(3)Other account receivable
1)By nature
In RMB
Nature Ending book balance Beginning book balance
Margin and deposit 5210066.16 1000000.00
Other intercourse funds 2146492606.53 1651168026.40
Total 2151702672.69 1652168026.40
2)By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 770755999.84 314162982.64
1-2 year 162272693.15 1312629466.00
2-3 years 1193798401.94
Over 3 years 24875577.76 25375577.76
Over 5 years 24875577.76 25375577.76
Total 2151702672.69 1652168026.40
3)Accrued bad debts reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debts reserve Book Book balance Bad debts reserve Book
Amount Ratio Amount Accrual valueratio Amount Ratio Amount
Accrual value
ratio
Including:
Including:
Bad debts reserve accrual on single basis
Explanation on the basis to determine such portfolio:：
230深圳市深粮控股股份有限公司2024年年度报告全文
Bad debts reserve is made on the basis of the general model of expected credit losses:
In RMB
Phase I Phase II Phase III
Bad debts reserve Expected credit losses Expected credit losses
Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on Jan. 1 2024 213468.24 27616266.80 27829735.04
Balance on Jan. 1 2024
in the period
Balance on Dec. 31
2024213468.2427616266.8027829735.04
Classification basis and bad debts reserve ratio for each stage
Changes in book balance with significant changes in the current period's provision for losses
□Applicable□Not applicable
4)Bad debts reserve accrued collected or reversal
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Collected orreversal Charged off Other
Bad debts reserve of
other account 27830170.77 435.73 27829735.04
receivable
Total 27830170.77 435.73 27829735.04
Important bad debts reserve collected or reversal:
In RMB
Basis and rationality to
Enterprise Collected or reversal Reason for reversal Manner of reversal define the accrued ratioof original bad debts
reserve
5) Other account receivable charged off in the period
Unit: RMB
Item Amount charged off
Including major other account receivable charged off:
Unit: RMB
Reason for charged Procedure of charged Resulted by related
Enterprise Nature Amount charged off
off off transaction (Y/N)
Explanation on other account receivable charged off:
6) Top 5 accounts receivable at ending balance by arrears party
In RMB
Enterprise Nature Ending Aging Proportion in total other receivables at ending Ending balance of bad debt
balance balance (%) reserve
231深圳市深粮控股股份有限公司2024年年度报告全文
7)Those booked into other accounts receivables due to centralized fund management
In RMB
Other explanation:
3.Long-term equity investment
In RMB
Ending balance Opening balance
Item
Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Investment in
subsidiary 4036688641.37 5500000.00 4031188641.37 4032344425.09 5500000.00 4026844425.09
Total 4036688641.37 5500000.00 4031188641.37 4032344425.09 5500000.00 4026844425.09
(1) Investment in subsidiaries
In RMB
Current changes (+/ -)
Opening Beginning Accrual Ending
Investee balance (book balance of Capital of Ending balance balance ofimpairment Additionalvalue) reductio impairme Other (book value) impairmentprovision investment n nt provision
provision
SZGC 3291415036. 3291415036.82 82
Dongguan
Shenliang
Logistics 321680000.00 321680000.00
Co. Ltd.Huizhou
Shenbao
Technolog 60000000.00 60000000.00
y Co. Ltd.Shenzhen
Shenbao
Huacheng 223228545.91 223228545.91
Technolog
y Co. Ltd.Shenzhen
Shenshenb
ao 50000000.00 50000000.00
Investment
Co. Ltd
Shenzhen
Shenbao -
Industrial 0.00 5500000.00 5500000. 0.00 0.00& Trading 00
Co. Ltd
Shenzhen
Shenliang
Food Co. 80520842.36
5500000.5500000.
0080520842.3600
Ltd.Xingye 4344216.Food 28 4344216.28
Total 4026844425. 5500000. 4344216. 0.00 4031188641. 5500000.09 00 28 37 00
232深圳市深粮控股股份有限公司2024年年度报告全文
(2) Investment in associated enterprises and joint venture
In RMB
Openin Current changes (+/ -)
g Cash EndingInvest
Opening balance ment Other Oth divide Accrua Ending
balance
balance of Additi Capit comprehe er nd or l of ofInvestee balance((book impairm onal al
gains
recogn nsive equi profit impair Ot book
impairm
value) ent invest reduc income ty annou ment her value) ent
provisio ment tion
ized provisio
under adjustme cha nced provisi
n nequity nt nge to onissued
I. Joint venture
II. Associated enterprise
l
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable□Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
(3) Other explanation
4.Operating revenue and operating cost
In RMB
Current period Last period
Item
Revenue Cost Revenue Cost
Main business 169747663.69 2337079.04 156272744.29
Other business 208390.08 471590.28 275218.36 471590.28
Total 169956053.77 2808669.32 156547962.65 471590.28
Breakdown information of operating income and operating costs:
In RMB
Contract Branch 1 Branch 2 Total
category Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business
type
Including:
Classification
by business
area
Including:
233深圳市深粮控股股份有限公司2024年年度报告全文
Market or
customer
type
Including:
Contract
types
Including:
Classification
by time of
goods
transfer
Including:
Classification
by contract
duration
Including:
Classification
by sales
channel
Including:
Total
Information related to performing obligations:
Item Time for Important Nature of the Is it the main The expected The types of
performance payment terms goods promised responsible refunds to quality
obligations to transfer by person customers borne assurance
the company by the company provided by the
company and
related
obligations
Other explanation
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to performing obligations that have been signed at the end of this reporting period but have
not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them 0.00 yuan of revenue is expected to be
recognized in the year
Significant contract changes or significant transaction price adjustments
Item Accounting treatment method Impact on income
Other explanation:
5. Investment income
In RMB
Item Current Period Last Period
Investment income of long-term equity
investment measured with cost method 1209380685.39 303903528.99
Investment income from the disposal of
long-term equity investment 1567130.20
Investment income during the holding
period of tradable financial assets 2190832.84 3378137.80
Investment income from the disposal of
tradable financial assets 2123849.30
Total 1215262497.73 307281666.79
234深圳市深粮控股股份有限公司2024年年度报告全文
6.Others
XX. Supplementary information
1. Current non-recurring gains/losses
□ Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset 5160259.92
Governmental subsidies reckoned into current gains/losses (except for those with normal operation business
concerned and conform to the national policies & regulations and are enjoyed according to certain standard 10243944.62
and having a continuous impact on the company’s gains/losses)
Gains/losses of assets delegation on others’ investment or management 4518517.76
Net current gains/losses from the business combination under the same control in the period from the
beginning of the period to the date of combination 92048.86
Other non-operating income and expenditure except for the aforementioned items 147191.48
Other gains/losses that meet the definition of non-recurring gains/losses 2890749.95
Less: impact on income tax 5545407.55
Impact on minority shareholders’ equity (after-tax) -3125.80
Total 17510430.84 --
Other gains/losses that conform to the definition of non-recurring gains/losses:
□ Applicable□ Not applicable
The Company does not have other gains/losses that conform to the definition of non-recurring gains/losses.Information on the definition of non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses
□Applicable □Not applicable
2. ROE and earnings per share
Earnings per share
Profits during reporting period Weightedaverage ROE Basic earnings per Diluted earnings pershare (RMB/Share) share (RMB/Share)
Net profits attributable to common stock stockholders of the
Company 6.67% 0.2823 0.2823
Net profits attributable to common stock stockholders of the
Company after deducting non-recurring gains/ losses 6.31% 0.2671 0.2671
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □Not applicable
In RMB
Net profit Net asset
Current amount Last amount Ending balance Beginning balance
235深圳市深粮控股股份有限公司2024年年度报告全文
Under Chinese GAPP 325309578.52 347739109.06 4919674142.82 4828491503.39
Items and amount adjusted under IAS
1067000.001067000.00
Under IAS 325309578.52 347739109.06 4920741142.82 4829558503.39
(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
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute listed name of the institute
4. Other
236
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