深圳市深粮控股股份有限公司
SHENZHEN CEREALS HOLDINGS CO.LTD.ANNUAL REPORT 2023
【April 2024】Section I. Important Notice Contents and Interpretation
Board of Directors the board of supervisors all directors supervisors and senior executives
of SHENZHEN CEREALS HOLDINGS CO. LTD. (hereinafter referred to as the Company)
hereby confirm that there are no any fictitious statements misleading statements or
important omissions carried in this report and shall take all responsibilities individual
and/or joint for the reality accuracy and completion of the whole contents.Principal of the Company Wang Zhikai Head of Accounting Lu Yuhe and Head of
Accounting Institution (Accounting Supervisor) Huang Xidi hereby confirm that the
Financial Report of Annual Report 2023 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 pay attention to read “Prospect forfuture development 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 2.00 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......................29
Section V. Environmental and Social Responsibility.. 51
Section VI. Important Events........................ 53
Section VII. Changes in Shares and Particulars abo.. 82
Section VIII. Preferred Stock........................89
Section IX. Corporate Bonds..........................90
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
Journal and Juchao Website (www.cninfo.com.cn) in the reporting period;
4. Original copies of 2023 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 Flour 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 Grain and Oil Purchase and Sales Branch of Shenzhen Cereals Group
Refers to
Branch 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 Shenzhen Agricultural Power Group Co. Ltd. originally named
Group/Food Material Goup/Food Refers to Shenzhen Food Materials Group Co. Ltd Shenzhen Food Group Co.Group/Fude Capital Ltd and Shenzhen Fude State Capital Operation Co. Ltd. is thecontrolling shareholder of the company
Agricultural Products Refers to Shenzhen Agricultural Products Group Co. Ltd
SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen Municipal People’s Government State-owned Assets
Shenzhen SASAC Refers to
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(Special General
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
Legal Representative Wang Zhikai
Registrations add. 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 BC of Bao’an Square No.1002 Sungang Road Luohu District Shenzhen; in 2010 the
registered address registered address changed to South half of the 20th floor Tower of Zhuzilin Education and
Technology Building Futian District Shenzhen; in 2015 registered address changed to 8/F
Tower B No.4 Building Software Industry Base South District Science & Technology Park
Xuefu Rd. Yuehai Street Nanshan District Shenzhen
Offices add. 13/F Tower A World Trade Plaza No.9 Fuhong Rd. Futian District Shenzhen
Codes for office add. 518033
Company’s 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
Contact add. 13/F Tower A World Trade Plaza No.9 Fuhong 13/F Tower A World Trade Plaza No.9 FuhongRd. Futian District Shenzhen Rd. Futian District Shenzhen
Tel. 0755-83778690 0755-83778690
Fax. 0755-83778311 0755-83778311
E-mail 000019@slkg1949.com chenky@slkg1949.comliumy@slkg1949.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual
report of the Company is disclosed Securities Times; China Securities Journal；shanghai Securities Journal
Media and Website where the annual report of the
Company is disclosed Juchao Website: www.cninfo.com.cn
Preparation place for annual report Office of the Board of Directors
IV. Registration changes of the Company
Organization code 91440300192180754J
On February 18 2019 the company completed the registration procedures of
Changes of main business since listing changes in industry and commerce for business scope and other matters. The main
(if applicable) business has newly increased the modern food supply chain services as grain & oil
trading processing storage and logistics.On September 10 1999 Shenzhen Investment Management Co. Ltd. entered into
the “Equity Transfer Agreement of Shenzhen Shenbao Industrial Co. Ltd.” with
Agricultural Products for 58347695 shares of the Company (35% in total shares of
the Company) transfer to Agricultural Products with price of RMB 1.95 per share.Agricultural Products comes to the first majority shareholder of the Company after
transfer and procedures for the above equity transfer has completed in June 2003.On April 3 2018 Shenzhen Investment Holdings Co. Ltd. completed the transfer of
all of its 79484302 shares of A shares in the company to Fude Capital(changed its
name to Food Materials Group later). After the completion of the equity transfer
Previous changes for controlling Food Materials Group directly holds 79484302 shares of A shares in the company
shareholders (if applicable) (accounting for 16% of the company’s original total share capital) and controls19.09% shares of the company through Agricultural Products indirectly becoming
the controlling shareholder of the company.In 2018 the company implemented a major asset restructuring by issuing
669184735 A-shares to purchase 100% equity of Shenzhen Grain Group held by
controlling shareholder Fude Capital. On November 12 2018 the above-mentioned
issued shares were registered and listed and the controlling shareholder Fude Capital
(now renamed into “Shenzhen Agricultural Power”) directly held 735237253 A-
shares of the company (accounting for 63.79% of the total share capital of the
company) and indirectly held 8.23% of the company's shares through Agricultural
Products.V. Other relevant information
CPA engaged by the Company
Name of CPA Grant Thornton Certified Public Accountant LLP(Special General Partnership)
Offices add. for CPA 5th Floor Saite Plaza No. 22 Jianguomenwai Street Chaoyang District Beijing China
Signing Accountants Gao Hong Wang Zhongnian
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable□ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable□ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
?Yes □No
In RMB
Changes in
the current
2022 year over
2023 the
2021
previous
year (+/-)
Before After adjustment After Beforeadjustment adjustment adjustment After adjustment
Operating 6190005356.8 8312723058.1 8312723058.1
revenue (RMB) 2 9 9 -25.54%
10139563710.10139563710.1
111
Net profit
attributable to
shareholders of
the listed 347824733.68 420594871.27 420764671.03 -17.34% 428720226.09 428699023.92
Company
(RMB)
Net profit
attributable to 328171024.17 402423745.44 402593545.20 -18.49% 377558306.28 377537104.11
shareholders ofthe listed
Company after
deducting non-
recurring gains
and losses
(RMB)
Net cash flow
arising from
operating 585816656.19 531888766.64 531888766.64 10.14% 440396029.54 440396029.54
activities
(RMB)
Basic earnings
per share 0.3018 0.3649 0.3649 -17.29% 0.3720 0.3720
(RMB/Share)
Diluted earnings
per share 0.3018 0.3649 0.3649 -17.29% 0.3720 0.3720
(RMB/Share)
Weighted
average ROE 7.26% 8.96% 8.96% -1.70% 9.13% 9.13%
Changes in
the current
Year-end of 2022 year overYear-end of the Year-end of 2021
2023 previous
year (+/-)
Before
adjustment After adjustment
After Before
adjustment adjustment After adjustment
Total 7398528190.9 7441334674.9 7441489372.6 -0.58% 7669618906.3assets(RMB) 4 8 3 2 7669630248.87
Net assets
attributable to
shareholder of 4824452103.8 4762973461.8 4763122059.4
listed 4 1 0 1.29%
4630292102.3
44630270900.17
Company(RMB
)
Reasons for changes in accounting policies and correction of accounting errors
The Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for Enterprises (CK[2022]No. 31) in November
2022 (hereinafter referred to as “Interpretation No. 16”).
Interpretation No. 16 stipulates that for a single transaction that is not a business merger does not affect accounting profits or taxable
income (or deductible losses) at the time of transaction and results in equal taxable temporary differences and deductible temporary
differences due to the initial recognition of assets and liabilities the corresponding deferred income tax liabilities and deferred
income tax assets shall be recognized separately at the time of transaction in accordance with relevant provisions such as Enterprise
Accounting Standard No. 18- Income Tax. For the above-mentioned transactions that occurred between the beginning of the earliest
period for the first implementation of the above regulations in financial statement presentation and the date of implementation of this
interpretation the enterprise shall adjust the cumulative impact to the beginning retained earnings and other related financial
statement items in the earliest period for financial statement presentation in accordance with the above regulations. The above
accounting treatment regulations will be implemented from January 1 2023.If the leasing liabilities and right of use assets recognized by the company for leasing business as well as the estimated liabilities and
corresponding assets related to abandonment obligations result in taxable temporary differences and deductible temporary
differences adjustments shall be made in accordance with the provisions of Interpretation No. 16.The impact of implementing the above accounting policies on the consolidated balance sheet as of December 31 2023 and the
consolidated income statement for the year 2023 is as follows:
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
The company has no difference of the net profit and net assets disclosed in financial report.
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
VIII. Main financial index disclosed by quarter
In RMB
Q 1 Q 2 Q 3 Q 4
Operating revenue 1338942951.54 1493053850.28 1647407257.06 1710601297.94
Net profit attributable to
shareholders of the listed 105444874.99 62704893.32 106071822.03 73603143.34
Company
Net profit attributable to
shareholders of the listed
Company after deducting non- 102828146.08 56275807.17 101920371.35 67146699.57
recurring gains and losses
Net cash flow arising from
operating activities -186820400.70 270323752.91 624601692.90 -122288388.92
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 RMB
Item 2023 2022 2021 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of 2394378.42 -3470850.06 29351180.57
assets)
Governmental subsidy 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 14544417.04 8775672.58 15871621.28
certain standard and having a continuous impact on
the company’s gains/losses)
Except for effective hedging business related to the
normal operation of the company gains/losses arising
from changes in fair value of trading financial assets
and trading financial liabilities held by non-financial 182701.67 18546.91 299292.76
enterprises as well as investment income obtained
from disposal of trading financial assets trading
financial liabilities and available for sale financialassets
Gains/losses of assets delegation on others’
investment or management 6622492.60 8455442.20 4014308.85
Reversal of provision of impairment of accounts
receivable which are treated with separate 679204.22 881986.09 4076676.65
depreciation test
Other non-operating income and expenditure except
for the aforementioned items 644754.74 7042268.06 13089042.88
Other profit and loss items that meet the definition of
non-recurring profit and loss 1064111.79
Less: impact on income tax 5027939.98 4583525.90 14600145.88
Impact on minority shareholders’ equity (after-
tax) 386299.20 12525.84 940057.30
Total 19653709.51 18171125.83 51161919.81 --
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable□ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/losses
Information on the definition of non-recurring gains/losses that listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as the 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 the Recurring Gains/Losses.Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
(i)Basic information of the industry development stage cyclical characteristics and the company’s position in the industry
In the international market the prices of major grain varieties fell month by month while rice prices rose against the trend. Since
2023 the status of imbalanced food supply has continued to improve and the global tight supply and demand pattern of major
agricultural products has gradually eased with prices of major grain varieties falling. However the main rice exporting country
India reduced rice production due to weather and other reasons and has implemented restrictions on rice exports leading to a rise in
global rice prices. At the end of 2023 the prices of wheat corn and soybeans on the Chicago Board of Trade (CBOT) decreased by
20.5% 30.6% and 14.9% year-on-year respectively. The price of rice started to rise in July 2023 and reached its highest level in
recent years by the end of the year. At the end of 2023 the prices of rice in Thailand Vietnam and Pakistan increased by 38.2%
42.4% and 32.2% year-on-year respectively. According to data released by the Food and Agriculture Organization of the United
Nations (FAO) in January 2024 the food price index for 2023 was 124 points a decrease of 19.7 points (13.7%) from the average of
the previous year. Among them the grain price index was 130.9 points reducing 23.8 points or 15.4% from the previous year. The
rice price index increased by 21% compared to the previous year reaching a new 15 year high since the global financial crisis in
2008. In addition the vegetable oil price index was 126.3 points a significant decrease of 61.5 points or 32.7% from the previous
year reaching a new low in three years.In the domestic market there has been another bumper harvest in grain production with overall prices of grain and oil falling and
imports of grain and oil increasing in quantity and decreasing in price. Firstly various regions and departments continued to increase
their support for grain production effectively overcoming adverse factors such as “rotten rain” severe floods and droughts in certain
areas and achieving a new historical high in grain production throughout the year. Secondly domestic raw grain and edible
vegetable oil prices fell. According to monitoring data from the National Grain and Oil Information Center at the end of 2023 the
prices of early indica rice and early rice (tertiary) in China increased by 6.04% and 6.51% year-on-year respectively while the prices
of wheat and corn decreased by 15.23% and 10.08% year-on-year the wholesale prices of rapeseed oil soybean oil palm oil and
soybean meal decreased by 9.24% 5.04% 4.91% and 14.18% year-on-year respectively.(The above content is from the “2023 Grain and Oil Market Review and Future Outlook” released by the Guangdong Provincial
Grain and Material Reserve Bureau.)
(ii) The significant impact of newly released laws administrative regulations departmental rules and industry policies on the
industry
In February 2023 the Central Committee of the Communist Party of China and the State Council issued the Opinions of the Central
Committee of the Communist Party of China and the State Council on the Key Work of Comprehensively Promoting Rural
Revitalization in 2023 (hereinafter referred to as “the Opinions”) which is the 20th No. 1 central document guiding the work of
“agriculture rural areas and farmers” since the new century. The Opinion deployed the key work of comprehensively promoting rural
revitalization in 2023 and emphasized the primary position of food security and stable production and supply of important
agricultural products. In the field of ensuring national food security the No. 1 central document of the Central Government in 2023
continued to give top priority to grain production and the supply of important agricultural products. The document clearly states that
it is necessary to ensure that the national grain production remains above 1.3 trillion kilograms and to make every effort to stabilize
and expand the production of crops such as soybeans and oilseeds. In order to achieve this goal the document proposes a series of
specific measures including strengthening farmland protection and use control stabilizing and improving food production capacity
and optimizing agricultural production structure and regional layout.The Food Security Law of the People’s Republic of China was promulgated in 2023. This law clarifies the national food security
strategy adheres to the principle of storing grain in the land and technology improves grain production capacity and ensures basic
self-sufficiency of grains and absolute food security. Besides the law also stipulates the responsibility system for food security
strengthens macroeconomic regulation of food optimizes the structure and regional layout of food varieties and constructs a
scientific reasonable safe and efficient food supply guarantee system. In addition the introduction of relevant regulations such as
the Measures for the Supervision of Grain Quality and Safety aims to strengthen the supervision of grain quality and safety protect
the enthusiasm of grain producers and safeguard the legitimate rights and interests of grain operators and consumers.In summary the policy documents and laws and regulations on food issued in 2023 reflect the country’s high attention to food
security and agricultural production. Such series of specific policies and measures are purposed for ensuring stability and growth of
food production and 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 and so on;
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 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 “Taitai Fukou” etc. Cooking oil
products include brands such as “Shenliang Fuxi” “Shenliang Jinxi” and “Youtian” etc. 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 Spoonbill tea rice oil drinking water non-staple
food and condiment series etc. and the launch of Yueqiu tea wine continues to enrich the product structure. “Grain Duoxi” rice oil
miscellaneous grains mushroom nut series etc; The launch of “Zhen Yue Qiu” tea wine continued 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 smart 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; 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.III. 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 “operational management andcontrol” 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 and discipline” building a
strict “six-in-one” system of controlling 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 strengthening the 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 EVA performance appraisal mechanism
and established a result-oriented incentive and restraint assessment mechanism which effectively built the performance culture andstimulated the viability within the enterprise. The company insists on cultivating and advocating the corporate culture with “people-oriented performance first excellent quality and harmony” as the core values combines the personal development goals of
employees with the corporate vision and enhances the 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
“Community Automatic Grain Sales Stations” 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 Beige has established a one-stop distribution service platform serving large end customers providing high-quality and safe
smart group meal food services for group users such as enterprises schools and government institutions. In terms of comprehensive
tea drinking services its subsidiary Shenbao Investment has launched a micro-complex “Cha Mi Xiang Qi” with a combination of
“light drinks” “light food” and “light retail” functions.
(3) Information technology
The company attaches great importance to the transformation and upgrading of traditional industries with 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 the
leading 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 research and development 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 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 a national standards “GBT 21733-2008 TeaBeverages” and two industry standards i.e. “Tea Concentrates for Food Industry - Light Industry Standard QB-T 4068- 2010” and
“Instant Tea for Food Industry - Light Industry Standard QB-T 4067-2010”.
(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 is includedin the national grain quality supervision and inspection system. It was awarded the “Guangdong Shenzhen National Grain QualityMonitoring 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 thenutritional composition and hygienic indicators of the grain and determine its storage and edible quality. It has created the “digitallaboratory” 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 Company 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 TopTen Grain and Oil Groups” “China Top 100 Grain and Oil Enterprises” “National Leading Enterprise Supporting Grain and OilIndustrialization” “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 Enterprises in China”
“Top 10 Head Enterprise in the Grain Industry” and “The National Demonstration Enterprise of Assured Gain & Oil DemonstrationProject” etc.. It is the “Rice Bag” trusted by the public. Strengthen brand leadership actively explore and cultivate excellent publicbrands 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” “Shenbao Teabank” “JuFang Yong” “Cha Mi Xiang Qi” “Sanjing” “www.zglsjy.com.com” and “doximi.com” and gradually build an industrial system
with complete “rice” + “tea” elements.IV. Main business analysis
1. Overview
2023 is a pivotal year bridging the “14th Five-Year Plan”. The company faced complex domestic and international situations. With a
strategic goal centered around “building a smart grain and oil food supply chain quality service provider” the company adhered to
the general tone of steady progress and pursued high-quality development. It focused on strengthening the synergy of the grain
"production-purchase-storage-processing-sales" chain solidly advancing infrastructure construction and improving institutional
mechanisms to better coordinate development and security. Efforts were concentrated on addressing weaknesses enhancing strengths
stabilizing fundamentals and leveraging advantages effectively raising the level of construction in the grain industry chain and
supply chain. In 2023 the company achieved total operating income of 6.19 billion yuan a decrease of 25.54% year-on-year; a total
profit of 421 million yuan a decrease of 10.52% year-on-year; and a net profit attributable to shareholders of the listed company of
348 million yuan a decrease of 17.34% year-on-year.
(1) Main business development
In 2023 with the ongoing downturn in the grain and oil market demand the company focused on exploring “growth points” in
profitability. It enhanced product quality and operational efficiency conducted in-depth research on various varieties and made
advance judgments on market trends to accurately grasp market dynamics and price changes. The company made new progress in
rice sales business; efforts were made to strengthen the sales capabilities of packaged oils and the production capacity of small-
packaged flour actively matching terminal markets; the product matrix continued to be enriched with ongoing additions such as the
ready-to-eat food of Big Kitchen the instant tea concentrate and fresh extract of Shenbao Huacheng the tea gifts of ShenbaoInvestment Company and the oyster sauce of Shenzhen Shenliang Food continuously meeting the needs of citizens for “rice flouroil tea wine and condiments”.
(2) Progress of key projects
The Northeast Grain Source Base has improved its rice production equipment to achieve refined management throughout the rice
production process. It has obtained ISO9001 and ISO22000 certifications comprehensively enhancing the level of quality and safety
management and increasing market competitiveness.The completion and acceptance of Nodes A2 and A3 projects of Dongguan Logistics have been achieved. Among them the Phase I
project of the A2 plot has been awarded the “Guangdong Province High-Quality Structural Award for Construction Projects in 2023”
and recognized as a "Demonstration Construction Site for Safe and Civilized Construction of Housing and Municipal Engineering in
Dongguan City".
(3) Other key works
Firstly strengthen innovation leadership. Guided by the goal of building a world-class enterprise drove reform and innovation by
benchmarking against leading practices. Focused on key core technology breakthroughs and promoting the application of innovative
achievements. Activities such as the “Smart Creation Technology-Driven Grain Prosperity” national science and technology event
week have been organized along with the “Leading Innovation Gathering Momentum” innovation workshop and innovationachievement exhibition. Facilitated the application process for innovation support projects and technological transformation support
projects in 2023; two invention patents have been granted national patent authorization and three new software copyrights have been
obtained; collaborated with Henan University of Technology and related units to conducted the "Key Information Technology and
Application of Grain Reserve Security" project.Secondly enhanced internal management. Revised the company’s articles of association and supported rules of procedure improving
the decision-making rules and decision-making item lists under the "Three Controls and One Major" framework; Conducted acomprehensive review and compilation of the company’s institutional documents strengthening the “abolition amendmentestablishment and clarification” of financial capital investment property rights engineering internal control quality safety and
personnel systems weaving a dense network of institutional systems. To meet the needs of enterprise development continuously
improved the EVA assessment system optimized the salary system and the total salary mechanism. Advanced the organic
integration of comprehensive risk management systems internal control systems and compliance management systems; built a
unified fund supervision platform fully implemented the direct banking function and strictly enforced the fund payment review
mechanism.Thirdly consolidated safety production and food safety.Strictly implemented the “three controls and three musts” of work safety andthe transmission mechanism of “shared responsibility between the Party and government dual responsibility for one position andaccountability for dereliction of duty”. Emphasized individual responsibility and personal duties fortified our own work safety and
operation positions strengthened awareness of safety red lines and bottom-line thinking. Regularly convened work safety analysis
meetings to grasp the company's safety management status in a timely manner and promoted closed-loop management of hazard
rectification. The company has implemented comprehensive management of critical control points for multiple food business units
ledger management for various food products and related information and conducted multiple on-site inspections and quality
management and food safety training sessions to ensure quality is paramount and to comprehensively strengthen our food safety
defenses.
2. Revenue and cost
(1) Component of operating revenue
In RMB
2023 2022 Increase/de
Ratio in Ratio in crease y-o-y
Amount operating Amount operating (+/-)
revenue revenue
Total operating revenue 6190005356.82 100% 8312723058.19 100% -25.54%
By industries
Wholesale and retail 4466378701.20 72.15% 6478281826.57 77.93% -31.06%
Leasing and business
services 967047827.95 15.62% 998700581.84 12.01% -3.17%
Manufacturing 756578827.67 12.23% 835740649.78 10.06% -9.47%
By products
Grain & oil trading and
processing 4954330328.57 80.04% 7060875537.13 84.94% -29.83%
Grain & oil storage
logistics and services 847768124.02 13.70% 914687968.81 11.00% -7.32%
Food beverage and tea
processing 268627200.30 4.34% 253146939.22 3.05% 6.12%
Leasing and others 119279703.93 1.92% 84012613.03 1.01% 41.98%
By region
Domestic market 6150511661.23 99.36% 8273944947.64 99.53% -25.66%Overseas market 39493695.59 0.64% 38778110.55 0.47% 1.85%
By sale model
Direct sale 6190005356.82 100.00% 8312723058.19 100.00% -25.54%
(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 Increase/decrease Increase/decrease Increase/decrease
Operating revenue Operating cost profit of operating of operating cost of gross profit
ratio revenue y-o-y y-o-y ratio y-o-y
By industry
Wholesale and
4466378701.204238501198.605.10%-31.06%-30.29%-1.05%
retail
By products
Grain & oil
trading and 4954330328.57 4728113869.55 4.57% -29.83% -28.78% -1.40%
processing
By region
Domestic
6150511661.235198929779.8115.47%-25.66%-27.20%1.79%
market
By sale model
Direct sale 6190005356.82 5228845801.34 15.53% -25.54% -27.10% 1.82%
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
Industries Item Unit 2023 2022 Increase/decreasey-o-y (+/-)
Sales volume Ton 1577925.32 2187056.83 -27.85%
Wholesale and
retail Output
Storage Ton 1073790.95 1160079.24 -7.44%
Reasons for y-o-y relevant data with over 30% changes
□ Applicable □Not applicable
(4) Performance of significant sales contracts major procurement contract entered into by the company up
to the current reporting period
□ Applicable □ Not applicable
(5) Component of operation cost
Classification of industries and products
In RMB
Industries Item 2023 2022 Increase/decrAmount Ratio in Amount Ratio in ease y-o-yoperation operation cost (+/-)
cost
Wholesale and Raw
retail materials 4238501198.60 81.06% 6080180348.76 84.77% -30.29%
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 changes in the scope of consolidation in reporting period
□Yes ?No
(7) Material changes or adjustment for products or services of the Company in reporting period
□ Applicable□ Not applicable
(8) Major sales clients and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) 1663217449.12
Proportion in total annual sales volume for top five clients 26.87%
Proportion in total annual sales volume for related sales among top five clients 0.00%
Top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 707231088.72 11.43%
2 Client II 283130674.51 4.57%
3 Client III 237153834.55 3.83%
4 Client IV 229845418.87 3.71%
5 Client V 205856432.47 3.33%
Total -- 1663217449.12 26.87%
Other explanation on main clients
□ Applicable□ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 1859306785.49
Proportion in total annual purchase amount for top five suppliers 38.34%
Proportion in total annual purchase amount from related purchase
among top five suppliers 0.00%
Top five suppliers of the Company
Serial Name Sum of purchase (RMB) Proportion in total annual sum of
purchase
1 Supplier I 520275623.69 10.73%
2 Supplier II 466647256.26 9.62%
3 Supplier III 372093441.50 7.67%
4 Supplier IV 325387066.31 6.71%
5 Supplier V 174903397.73 3.61%
Total -- 1859306785.49 38.34%
Other explanation on main suppliers
□ Applicable□ Not applicable3.Expenses
In RMB
2023 2022 Increase/decrease y-o-y(+/-) Note of major changes
Sales expenses 176429835.98 175760616.70 0.38%
Mainly due to the
Administration
expenses 212979557.64 280557640.12 -24.09% decrease in salary
expenses
Mainly due to a
decrease in the average
Financial expenses annual borrowing40062737.27 51357048.55 -21.99%
balance and a decrease
in interest expense
expenses
R&D expenses 20045364.68 18549053.04 8.07%
4.R&D investment
□Applicable □Not applicable
Expected impact on the
Projects Purpose Progress Goals to be achieved future development of
the Company
Develop grain and oil
data interfaces to Meet the information
Enhance the company's
collect and consolidate management
digital management
capabilities for reserve
Reserve Grain and Oil data from multiple requirements for grain improving data
Data Management subsystems within the Completed reserve grain and oildata enabling quality and governancePlatform company and standards and
aggregate them into synchronized strengthening
relevant information uploading of relevantdata. supervision over datamanagement platforms. management.Optimize the
functionality of the Establish rotation grain Achieve differentiation
EAS system in and oil accounts within and independent
Binary Separation accordance with the the EAS system to management of reserve
Optimization Project requirements of Completed further meet the grain and commercial
"separating" reserve management grain based on
operations and requirements for financial accounting
commercial operations. reserve grain and oil. entities.Optimize the
functionality of the Complete adjustmentsOptimization and
Adjustment Project for self-developed system
to the self-developed Ensure the accuracy
"Separating" In-house and cloud supply chain
system and cloud clarity and smooth
Management System system according to the Completed
supply chain system operation of supply
company’s grain and enabling intelligent chain data financialand Cloud Supply oil business upgrades and data and reportingChain System management renovations to data.requirements. warehouses.Address data Rectify the inventory
Rectify historical data
to meet system
Commodity Inventory imperfection within the nature of outbound management
Nature Data Repair system particularly Completed inbound costadjustment documents requirements andProject handling pre-2022 enhance the overall
inbound detail data. and inventory balancesheets. data quality of thecompany.Establish an office Integrate a materials Improve administrative
Office Supplies supplies management management module logistics management
Management Platform platform to standardize Completed into the OA system to and internal operationaland digitize the process meet office efficiency promote
of materials requirements for high-qualitymanagement. material management development of the
enhance full-process company and realize
management including digital and information
material requisition empowerment to
inventory management enhance the quality and
and material efficiency of
procurement and administrative logistics
interface with OA management.approval results.Personnel of R&D
2023 2022 Increase(+)/Decrease(-) by
Number of R&D (people) 144 136 5.88%
Ratio of number of R&D 11.86% 11.00% 0.86%
Education background
Undergraduate 60 65 -7.69%
Master 33 29 13.79%
Age composition
Under 30 34 44 -22.73%
30~40654932.65%
R&D investment
2023 2022 Increase(+)/Decrease(-)
R&D investment (RMB) 54614733.25 58336915.06 -6.38%
Ratio of R&D investment in
operation revenue 0.88% 0.70% 0.18%
Capitalization of R&D
investment (RMB) 0.00 0.00 0.00%
Ratio of capitalization of
R&D investment in R&D 0.00% 0.00% 0.00%
investment
Describe reasons for significant changes in component of the R&D personnel and related impact
□Applicable □Not applicable
Describe reasons for significant changes in the proportion of total R&D investment accounting for operation income compared with
that of last year
□ Applicable □ Not applicable
Describe reason for the great change in R&D investment capitalization rate and relevant rationality.□ Applicable □ Not applicable
5. Cash flow
In RMB
Item 2023 2022 Increase(+)/decrease(-) y-o-y
Subtotal of cash inflow from
operation activity 6705107578.90 8994941611.03 -25.46%
Subtotal of cash outflow from
operation activity 6119290922.71 8463052844.39 -27.69%
Net cash flow arising from
operating activities 585816656.19 531888766.64 10.14%
Subtotal of cash inflow from
investment activity 1575902755.32 1289883392.34 22.17%
Subtotal of cash outflow from 1690621094.50 1304661803.05 29.58%investment activity
Net cash flow from investment
activity -114718339.18 -14778410.71
Subtotal of cash inflow from
financing activity 1931277809.13 3643844014.55 -47.00%
Subtotal of cash outflow from
financing activity 2226523738.31 4157396506.10 -46.44%
Net cash flow arising from
financing activity -295245929.18 -513552491.55
Net increased amount of cash and
cash equivalent 179294017.16 3725389.06 4712.76%
Describe reasons for major y-o-y changes of relevant data
□ Applicable □ Not applicable
(1) The cash inflow from operating activities in this period decreased by 25.46% compared to the same period last year mainly
because the company’s grain and oil trade revenue decreased resulting in a decrease in cash inflow as the oil and grain market
demand reduced;
(2) The cash outflow from operating activities in this period decreased by 27.69% compared to the same period last year mainly
because the company’s grain and oil trade revenue decreased and related procurement expenses decreased resulting in a decrease in
cash outflow as the oil and grain market demand reduced;
(3) The cash inflow from investment activities in this period reduced by 47.00% compared to the same period last year mainly
because the company’s operating cash flow continues to flow in resulting in a decrease in temporary working capital loans;
(4) The cash outflow from investment activities in this period increased by 46.44% compared to the same period last year mainly
because the temporary turnover loans of the company decreased resulting in a decrease in the corresponding repayment of loan
expenses. The proportion of the decrease is basically consistent with the cash inflow from financing activities;
Describe reasons for major difference between the cash flow of 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 formation Sustainable or not(Y/N)
Investment income 9954884.45 2.36% Mainly financial managementincome N
Gains/losses of fair
value variation 182701.67 0.04% N
Asset impairment -104336237.13 -24.76% Mainly due to provision forinventory depreciation N
Non-operating
income 2445728.23 0.58% N
Non-operating
expense 1800973.49 0.43% N
VI. Analysis of assets and liabilities
1. Major changes of assets component
In RMB
Year-end of 2023 Year-begin of 2023 Ratio
changes Notes of major changesAmount Ratio in Amount Ratio intotal total
assets assets
Monetary fund 236384606.60 3.20% 54103771.00 0.73% 2.47%
Account
receivable 179828493.98 2.43% 236829100.95 3.18% -0.75%
Inventory Mainly due to a decrease in3458443989.04 46.75% 3599041970.52 48.36% -1.61%
inventory of grain and oil
Investment real
estate 263597031.89 3.56% 217137461.76 2.92% 0.64%
Long-term
equity 74008926.48 1.00% 70676534.63 0.95% 0.05%
investment
Mainly due to the conversion of
Fix assets some engineering projects into2171969725.22 29.36% 2141336538.86 28.78% 0.58%
fixed assets after completion and
use
Mainly due to the conversion of
Construction in some engineering projects into
progress 51288301.16 0.69% 186884912.13 2.51% -1.82% fixed assets after completion and
use
Right-of-use
assets 56933148.16 0.77% 78304838.28 1.05% -0.28%
Short-term loans 1223462519.16 16.54% 1192211087.37 16.02% 0.52%
Contract
liability 86566253.73 1.17% 110177908.96 1.48% -0.31%
Lease liability 37744951.74 0.51% 60436879.66 0.81% -0.30%
Foreign assets account for a relatively high proportion
□ Applicable□ Not applicable
2. Assets and liabilities measured by fair value
□ Applicable □ Not applicable
In RMB
Changes of Accumulativ Devaluatio Amount
Amount at fair value e changes of n of of Amount of Other Amount in
Item the beginning gains/losse fair value withdrawin purchas sale in the change the end of
period s in this reckoned g in the e in the period s period
period into equity period period
Financial assets
1.Tradable
financial assets
(excluding 46676652.9 45554305.0 1122347.8
derivative 1 6 5
financial
assets)
5.Other non-
current 57500.00 57500.00
financial assets
6.Large fixed 30226 30226849.
deposit 849.32 32
Subtotal of 46734152.9 30226 45554305.0 31406697.financial assets 1 849.32 6 17
Aforementione 46734152.9 30226 45554305.0 31406697.d total 1 849.32 6 17
Financial
liabilities 288486.18 288486.18 0.00
Other change
Are there major changes on measurement attributes for main assets of the Company in reporting period□ Yes □No
3.The assets rights restricted till end of the period
The details of monetary funds that are restricted in use due to mortgage pledge or freezing restricted in centralized management and
withdrawal of funds and restricted in repatriation of funds placed overseas are as follows:
Item Ending balance Ending balance of last period
Guarantee deposit 1800000.00 1000000.00
Letter of credit deposit 691708.31
Litigation related freezing 2973129.00
Other 8301.74
Total 5464837.31 1008301.74
VII. Investment analysis
1. Overall situation
□ Applicable □ Not applicable
Investment in reporting period (RMB) Investment in the same period of last year(RMB) Changes (+/-)
80361097.0078284825.002.65%
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 applicable
In RMB
Chan Profit
Book Cumu
Acco ges in Curre and Book
Short value lative Curre
Variet Code Initial unting fair nt loss value Acco Capita
form at the fair nt
y of of invest measu value purch in the at the unting l
of begin value sales
securi securi ment remen of the ase Repor end of subjec Sourc
securit ning chang amou
ties ties cost t curren amou ting the t e
ies of the es in nt
model t nt Perio period
period equity
profit dand
loss
Dome
stic Fair Trada
and 00001 Zhong value
1228 - - 1122 ble Debt
0.00 measu 132.3 1057 0.00 0.00 0.00 1057 347.8 financ rescheovers 7 hua-A remen duledeas 6 84.51 84.51 5 ial
stock ts assets
shares
1228--1122
Total 0.00 -- 132.3 1057 0.00 0.00 0.00 1057 347.8 -- --
684.5184.515
(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 and stock-jointly companies
□ Applicable□Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Compa
ny Type Main business Registercapital Total assets Net assets
Operating Operating
name revenue profit
Net profit
Shenzh
en Grain & oil
Cereals Subsidi trading 1530000 758282709 404557420 577190154 31758342 23179178
Group ary processinggrainand oil reserve 000 1.74 2.44 7.09 0.26 1.04Co.Ltd service
Shenzh
en
Hualian Subsidi Grain & oil 1000000 128510977 280425849. 204181780 66309341. 58133479.Grain ary trading 00 4.64 01 4.89 11 12
and Oil
TradingCo.Ltd.Donggu
an Grain & oil
Shenlia Subsidi tradingng processingwareh 2980000 264118208 390296857. 110243940 54020829. 38288511.Logisti ary ouse and 00 7.16 83 8.64 20 78
cs Co. logistics
Ltd.Particular about subsidiaries obtained or disposed in reporting period
□ Applicable ? Not applicable
Explanation on main holding/stock-jointly enterprise:
Shenzhen Cereals Group Co. Ltd: Business scope: general business items: grain and oil purchase and sales grain and oil storage;
grain and oil and products management and processing (operated by branches); operation and processing of feed (operated 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
7582827091.74 yuan and net assets amounted to 4045574202.44 yuan and shareholders’ equity attributable to parent company
was 3820283971.29 yuan; in the reporting period the operation revenue net profit and net profit attributable to shareholder of
parent company were 5771901547.09 yuan 231791781.04 yuan and 213490625.43 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 1285109774.64 yuan and net assets amounted to 280425849.01 yuan and shareholders’ equity
attributable to parent company was 251319373.93 yuan; in the reporting period the operation revenue net profit and net profit
attributable to shareholder of parent company were 2041817804.89 yuan 58133479.12 yuan and 56761134.19 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 beoperated with the approval of relevant departments. Its registered capital is 2980000.00 yuan. As of the end of current period total
assets reached 2641182087.16 yuan and net assets amounted to 390296857.83 yuan and shareholders’ equity attributable to
parent company was 390296857.83 yuan; in the reporting period the operation revenue net profit and net profit attributable to
shareholder of parent company were 1102439408.64 yuan 38288511.78 yuan and 38288511.78 yuan respectively.X. Structured vehicle controlled by the Company
□ Applicable□ Not applicable
XI. Prospects on future development
(i) Development trend and competition layout of the 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.(ii) 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” “three chainsintegration” 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 southern coastallogistic 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”.(iii) Operation plan for the year of 2024In 2024 the company will closely adhere to the central ideology of “seeking progress while maintaining stability and innovatingwhile adhering to the fundamentals”. Building upon our core business the company will seek new breakthroughs extend the grain
industry chain enhance the value chain and construct a comprehensive supply chain establishing a “big grain” “big industry” and
“big circulation” framework spanning from raw grain to finished products from production areas to distribution areas and from
fields to tables. Key focuses include:
1．Enhance market expansion capabilities. Actively expand bulk trade business intensifying market development efforts leverage
information on grain usage inventory structures procurement channels of terminal enterprises and our company’s existing resources
such as docks warehousing and funds to provide end-to-end services for upstream and downstream customers. Elevate marketing
capabilities for B and C segments revitalize traditional channels innovate marketing channels nurture specialized marketing teams
form joint operation “1+N” mechanism strengthen “online + offline” integrated sales integrate and expand sales channels and
layouts and create synergy in product circulation.
2．Enhance brand building capabilities. Elevate the visibility appeal and reputation of the brand of SZCH systematicallyimplement brand building work from brand architecture brand recognition brand communication to value management craft
flagship grain and oil products and establish a good brand image with excellent products and services.
3．Strengthen technological innovation. Play the leading role in enterprise technological innovation increase investment in
technological innovation enhance exchange and cooperation with domestic and foreign universities and research institutions in the
“industry-university-research” nexus facilitate the integration and application of industrial R&D and innovative technologies
promote the transformation of scientific and technological innovation achievements into real productivity. Actively participate in the
formulation of industry standards in the grain and oil warehousing and other industries continuously explore and output the digital
product and service value of “SZCH Standards”.
4．Accelerate business model innovation. Strengthen product function research enrich product formats drive the extension of the
industry chain into segmented fields and support new business formats with innovative product capabilities. Persistently iterate
business marketing models for grain and oil B and C ends continuously optimize operational quality through innovation.
5．Enhance risk prevention and resolution capabilities. Continuously advance comprehensive risk management and internal control
system construction strictly implement safety production responsibilities solidly conduct a three-year action plan to address
fundamental safety production issues strengthen the construction of food safety management systems and firmly guard the bottom
line of safety and stability.(iv) Potential risks
1．Fluctuation risks in grain and oil purchasing and sales prices
In the year of 2023 uncertainties stemming from external factors such as continued interest rate hikes by the Federal Reserve
Russia-Ukraine conflicts and extreme weather events led to significant fluctuations in domestic and international grain and oil
purchasing and sales prices. Additionally export controls on agricultural products imposed by some countries directly impact the
supply of bulk agricultural products further exacerbating the volatility of grain and oil prices.The company will actively address the risks posed by price fluctuations to its operations by strengthening market forecasting
establishing strategic partnerships optimizing supply management and implementing refined management measures to enhance
utilization rates.
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 FoodQuality Safety Management Measures” covering grain and non-grain food categories and their key business processes to align with
the existing company’s business model and diversified 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 thegrain 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 on the one hand the company makes overall plans for annual procurement
carefully optimizes procurement channels and ensures sufficient grain supply and orderly supply. On the other hand the company
continues to strengthen communication with upstream and 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.XII. Reception of research communication and interview during the reporting period
? Applicable□ Not applicable
Recepti Main content
Reception Reception on Reception talked about and Index of basic
Reception time
place mode object Object materials situation of research
type provided
For details please referto the “InvestorCommunication
Network Record Form of the
Online Value platform 2021 annual Company's 2022
May 12 2023 www.ir- online Other All investors performance Annual Performanceonline.cn communica briefing Explanation Meeting”
tion disclosed on Juchao
Website (www.cninfo.com. cn) on May 12
2023
Development of
For details please refer
the company'sto the “Companybusiness
Conference Investor Relations
Spot operationsroom of the Instituti Guoxin Activity Record Form”
December 15 2023 investigatio brand and sales
company in on Securities disclosed on Juchao
th n channels14 floor Website (www.cninfo.information
com. cn) on December
technology
122023
construction etc
XIII. Implementation of the Action Plan for“Double Improvement of Quality and Return”
Does the company disclose Action Plan for “Double Improvement of Quality and Return”
□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
meeting Type
investor
participati Date Date of disclosure Resolutions
on
Resolutions of the Annual
General Meeting of 2022
Annual General
Meeting of 2022 AGM 72.19% 2023-05-17 2023-05-18
(Notice No. 2023-11 )
disclosed on Juchao
Website(www.cninfo.com.c
n) on May 18 2023
Resolutions of the 1st
The 1st Extraordinary General
Extraordinary
extraordinary Meeting of Shareholders of
general
general meeting of 72.13% 2023-09-14 2023-09-15 2023 (Notice No. 2023-21 )
meeting of
shareholders of disclosed on Juchao
shareholders
2023 Website(www.cninfo.com.c
n) on September 15 2023
Resolutions of the 2nd
The 2nd Extraordinary General
Extraordinary
extraordinary Meeting of Shareholders of
general
general meeting of 72.14% 2023-11-03 2023-11-04 2023 (Notice No. 2023-28 )
meeting of
shareholders of disclosed on Juchao
shareholders
2023 Website(www.cninfo.com.c
n) on November 4 2023
Resolutions of the 3rd
The 3rd Extraordinary General
Extraordinary
extraordinary Meeting of Shareholders of
general
general meeting of 72.13% 2023-12-21 2023-12-22 2023 (Notice No. 2023-37 )
meeting of
shareholders of disclosed on Juchao
shareholders
2023 Website(www.cninfo.com.c
n) on December 22 20232. Request for extraordinary general meeting by preferred stockholders whose voting rights are restored
□ Applicable□ Not applicable
V. Directors supervisors and senior executives
1. Basic information
Start End Shares Number Number of Shares Reasons
Working dated date held at
of shares shares for
Name Gender Age Title of of period- increased decreased
Other held at
status in this in this changes period-
increase
office office begin or
term term (share) period period
(share) end
(share) (share) (share)
decrease
of shares
Party
Wang Secretary. Currently 2023- 2026-
Zhikai Male 52 0 0 0 0 0 -Chairman of in office 11-03 11-03
BOD
Deputy Party
Hu Currently 2019- 2026-
Xianghai Male 59 Secretary 0 0 0 0 0 -in office 02-21 11-03
Director GM
Currently 2023- 2026-
Gu Cheng Male 51 Director 0 0 0 0 0 -
in office 11-03 11-03
Zhang Currently 2023- 2026-
Guoyuan Male 50 Director 0 0 0 0 0 -in office 11-03 11-03
Deputy Party
Zheng Currently 2023- 2026-
Xiangpeng Male 48 Secretary 0 0 0 0 0 -in office 11-03 11-03
Director
Currently 2021- 2026-
Lu Yuhe Female 46 Director CFO 0 0 0 0 0 -
in office 08-02 11-03
Zhao Independent Currently 2019- 2026-
Rubing Male 67 0 0 0 0 0 -director in office 02-21 11-03
Independent Currently 2019- 2026-
Bi Weimin Female 67 0 0 0 0 0 -
director in office 02-21 11-03
Liu Independent Currently 2019- 2026-
Haifeng Male 52 0 0 0 0 0 -director in office 02-21 11-03
You Currently 2023- 2026-
Hongxia Female 53 Supervisor 0 0 0 0 0 -in office 11-03 11-03
Liu Currently 2023- 2026-
Xinqing Female 51 Supervisor 0 0 0 0 0 -in office 11-03 11-03
Deputy Party
Zheng Secretary Currently 2019- 2026-
Shengqiao Male 56 0 0 0 0 0 -employee in office 02-21 11-03
supervisor
Ma Employee Currently 2019- 2026-
Zenghai Male 59 0 0 0 0 0 -supervisor in office 02-21 11-03
Member of the
Party
Committee
Chen Currently 2020- 2026-
Xiaohua Male 57 Deputy GM 0 0 0 0 0 -in office 08-24 11-03
and Secretary
of the Board of
Directors
Member of the
Party Currently 2023- 2026-
Shen Hua Mmle 49 0 0 0 0 0 -
Committee in office 11-03 11-03
Deputy GMMember of the
Party Currently 2020- 2026-
Xiao Hui Male 45 0 0 0 0 0 -
Committee in office 02-28 11-03
Deputy GM
Member of the
Du Party Currently 2023- 2026-
Jianguo Male 51 0 0 0 0 0 -Committee in office 11-03 11-03
Deputy GM
Original Office 2018- 2023-
Ni Yue Female 49 0 0 0 0 0 -
director leaving 05-15 11-03
Former
Secretary of
the
Commission
Wang for Discipline Office 2018- 2023-
Huimin Female 56 0 0 0 0 0 -Inspection and leaving 05-15 09-15
Chairman of
the
Supervisory
Board
Former Office 2019- 2023-
Liu Ji Male 48 0 0 0 0 0 -
supervisor leaving 02-21 11-03
Qian Former Office 2019- 2023-
Wenying Female 51 0 0 0 0 0 -supervisor leaving 02-21 11-15
Former
member of the
Office 2019- 2023-
Dai Bin Male 59 Party 0 0 0 0 0 -
leaving 02-21 11-15
Committee
Deputy GM
Former
member of the
Meng Office 2019- 2023-
Xiaoxian Male 51 Party 0 0 0 0 0 -leaving 09-11 09-11
Committee
Deputy GM
Total -- -- 0 0 0 0 0 --
During the reporting period is there any departure of directors and supervisors and dismissal of senior executives
□ Yes □ No
1. The board of directors of the company received a written resignation report from Mr. Meng Xiaoxian a member of the company's
party committee and deputy GM on September 11 2023. Due to job transfer Mr. Meng Xiaoxian applied to resign from the position
of deputy GM and he will no longer hold any other positions in the company after resigning.
2. The company’s supervisory board received a written resignation report from Ms. Wang Huimin the secretary of the Discipline
Inspection Commission and Chairman of the Supervisory Board on September 15 2023. Due to job transfer Ms. Wang Huimin
applied to resign from her position as Chairman of the Supervisory Board and she will no longer hold any other positions in the
company after resigning.
3. The second extraordinary general meeting of shareholders held by the company on November 3 2023 reviewed and approved the
Proposal for the Election of Non-independent Directors the Proposal for the Election of Independent Director and the the Proposal
for the Election of Supervisory Board. The 11th session of directors and supervisors of the company were elected and Ms. Ni Yue
Mr. Liu Ji and Ms. Qian Wenying the 10th session of the directors left after their terms of office expired.4. On November 3 2023 the first meeting of the 11th session of the Board of Directors of the company reviewed and approved the
Proposal on the Appointment of Senior Management Personnel. The 11th senior management personnel of the company were
appointed and Mr. Dai Bin the 10th deputy GM of the company resigned upon the expiration of his term.Changes of directors supervisors and senior officers
□ Applicable □ Not applicable
Name Title Type Date Reason
Meng Xiaoxian Member of the Party Committee Job
Dismissed Sep. 11 2023
Deputy GM transfer
Wang Huimin Secretary of the Commission for
Job
Discipline Inspection and Chairman of Resigned Sep 15 2023
transfer
the Supervisory Board
Ni Yue Director Resigned upon expiration of term Nov 3 2023 Transition
Liu Ji Supervisor Resigned upon expiration of term Nov 3 2023 Transition
Qian Wenying Supervisor Resigned upon expiration of term Nov 3 2023 Transition
Dai Bin Member of the Party Committee
Resigned upon expiration of term Nov 3 2023 Transition
Deputy GM
Wang Zhikai Party Secretary. Chairman of BOD Elected Nov 3 2023 Transition
Gu Cheng Director Elected Nov 3 2023 Transition
Zhang Guoyuan Director Elected Nov 3 2023 Transition
Zheng Xiangpeng Deputy Party Secretary. Chairman of
Elected Nov 3 2023 Transition
BOD
You Hongxia Supervisor Elected Nov 3 2023 Transition
Liu Xinqing Supervisor Elected Nov 3 2023 Transition
Shen Hua Member of the Party Committee
Employed Nov 3 2023 Transition
Deputy GM
Du Jianguo Member of the Party Committee
Employed Nov 3 2023 Transition
Deputy GM
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. Hu Xianghai: born in 1964 master’s degree and a senior economist. He successively served as the lecturer of Shenzhen Institute
of Education; director of general office of Asia Branch of the Shenzhen Huale Industrial Co. Ltd.; director of the Shenzhen
Enterprise Management Cadre Training Center; deputy secretary general and office director of the Secretarial Shenzhen Association
of Enterprise Management and Shenzhen Association of Chinese and Foreign Entrepreneurs; director of development dept. and
director of the marketing management dept. of Shenzhen Special Economic Zone Duty-Free Commodity Enterprise Company; GM
of Temian Electronic Technology Professional Market Management Co. Ltd.; assistant to the GM and GM of enterprise dept. GM
deputy secretary of the party committee director and GM of Shenzhen Agricultural Products Co. Ltd; served as the president of
Shenzhen South Agricultural Products Logistics Co. Ltd. while take post as assistant to the deputy GM and the president ofShenzhen Qianhai Agricultural Products Exchange Co. Ltd; deputy secretary of the party committee director and GM of Shenzhen
Cereals Group Co. Ltd. Now he serves as deputy secretary of the party committee director and GM of the Company.Mr. Gu Cheng: Born in 1973hold 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 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 this 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 Yehe: born in 1977 master’s degree and CPA. She previously worked as the senior auditor of Ernst & Young; the
independent non-executive director Director and CFO of China Trends Holdings Limited; CFO of VIEIN; Director and CFO of the
Shenzhen 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 ofinvestment 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 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 thesecretarial 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 Haijixing International
Logistics Co. Ltd. chairman of Tianjin Haijixing Agricultural Products Market Management Co. Ltd. and chairman of Tianjin
Haijixing 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 a 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 Start dated of End date of Whether receiving remunerationentities office term office term from shareholding entities(Y/N)
Wang Zhikai Shenzhen Agricultural
2023-09-01 N
Power Group Co. Ltd.Gu Cheng Shenzhen Agricultural
2022-09-01 Y
Power Group Co. Ltd.Gu Cheng Shenzhen Agricultural
2023-01-17 N
Products Group Co. Ltd
Zhang Guoyuan Shenzhen Agricultural
2023-08-01 Y
Power Group Co. Ltd.You Hongxia Shenzhen Agricultural
2023-10-01 Y
Power Group Co. Ltd.Liu Xinqing Shenzhen Agricultural
2023-10-01 Y
Power Group Co. Ltd.Explanation of employment
in shareholder units NA
Post-holding in other entities
□ Applicable □ Not applicable
Whether
Name Name of other Position Start dated of office End date of office
receiving
entities term term remunerationfrom other
entities(Y/N)Bosera Fund
Zhao Rubing Management Co. Independentdirector 2017-12-01 YLtd.Zhao Rubing Southwest IndependentSecurities Co. Ltd director 2017-03-01 2023-12-25 Y
Guangdong
Liu Haifeng Hancheng Laws First-level partner 2007-02-01 Y
Firm
Explanation on
post-holding in
N/A
shareholding
entities
Punishment of securities regulatory authorities in recent three years to the Company’s current and outgoing directors supervisors and
senior management during the reporting period
□ Applicable□ Not applicable
3. Remuneration for directors supervisors and senior executives
Decision-making procedures determination bases and actual payment of remunerations of directors supervisors and 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 period
Unit: 10 thousand Yuan
Total Whetherremuneration
Name Title Gender Age Post-holding remunerationstatus obtained from obtained from
the Company related party ofthe Company
Wang Zhikai Party Secretary and Currently in
Male 52 Chairman 14.69 Noffice
Hu Xianghai Deputy Secretary of the
Male 59 Party Committee Director
Currently in
140.18 N
and GM office
GuCheng Director Currently in
Male 50 0 Y
office
ZhangGuoyuan Director Currently in
Male 50 0 Y
office
Zheng Deputy Secretary of the
Xiangpeng Male 48 Party Committee and
Currently in
13.01 N
Director office
Lu Yuhe Director and CFO Currently in
Female 46 50 Y
office
Zhao Rubing independent director Currently in
Male 67 13.8 N
office
Bi Weimin independent director Currently in
Female 67 13.8 N
office
Liu Haifeng independent director Currently in
Male 52 13.8 N
office
Zheng Deputy Secretary of the
Shengqiao Male 56 Commission for Discipline
Currently in
Inspection and employee 115.91 Noffice
supervisorMa Zenghai Employee supervisor Currently in
Male 59 107.07 N
office
Chen Xiaohua Deputy GM and Secretary Currently in
Male 57 of the Board of Directors 125.72 Noffice
Shen Hua Deputy GM Currently in
Male 48 13.01 N
office
Xiao Hui Deputy GM Currently in
Male 45 127.24 N
office
Du Jianguo Deputy GM Currently in
Male 50 13.01 N
office
Ni Yue Female 49 Former Director Office leaving 12.5 Y
Wang Huimin Former Secretary of the
Female 56 Commission for DisciplineInspection and Chairman Office leaving 35.42 Y
of the Supervisory Board
Liu Ji Male 48 Former supervisor Office leaving 0 N
Qian Wenying Female 51 Former supervisor Office leaving 0 N
Dai Bin Male 59 Former Deputy GM Office leaving 127.02 N
Meng Xiaoxian Male 51 Former Deputy GM Office leaving 114.56 N
Total -- -- -- -- 1050.74 --
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 Disclosuremeeting date Meeting resolutions
The 26th meeting of The “Resolution of the 26th meeting of 10th session of the BOD” (Notice No.:
th 2023-02-10 session of the 2023-02-17 2023-01) released on Juchao Website (www.cninfo.com.cn) on Feb. 17
16
BOD 2023
The 27th meeting of The “Resolution of the 27th meeting of 10th session of the BOD” (Notice No.:
th 2023-04-10 session of the 2023-04-26 2023-04) released on Juchao Website (www.cninfo.com.cn) on April 26
24
BOD 2023
The 28th meeting of The “Resolution of the 28th meeting of 10th session of the BOD” (Notice No.:
th 2023-05-10 session of the 2023-05-31 2023-12) released on Juchao Website (www.cninfo.com.cn) on May 31
30
BOD 2023
The 29th meeting ofth 2023-07- The “Resolution of the 29th meeting of 10th session of the BOD” (Notice No.:
10 session of the 2023-07-11
80 2023-14) released on Juchao Website (www.cninfo.com.cn) on July 11 2023
BOD
The 30th meeting of The “Resolution of the 30th meeting of 10th session of the BOD” (Notice No.:
th 2023-08-10 session of the 2023-08-29 2023-15) released on Juchao Website (www.cninfo.com.cn) on Aug. 29
25
BOD 2023
The 31st meeting of The “Resolution of the 31th meeting of 10th session of the BOD” (Notice No.:
th 2023-09-10 session of the 2023-09-21 2023-23) released on Juchao Website (www.cninfo.com.cn) on Sep. 21
20
BOD 2023
The 32nd meeting of The “Resolution of the 32nd meeting of 10th session of the BOD” (Notice
2023-10-
10th session of the 2023-10-19 No.: 2023-25) released on Juchao Website (www.cninfo.com.cn) on Oct. 19
18
BOD 2023
The 33rd meeting of The “Resolution of the 1st meeting of 11th session of the BOD” (Notice No.:
th 2023-10-10 session of the 2023-10-28 2023-27) released on Juchao Website (www.cninfo.com.cn) on Oct. 28
26
BOD 2023
The 1st meeting of 11th 2023-11- The “Resolution of the 1st meeting of 11th session of the BOD” (Notice No.:
2023-11-04session of the BOD 03 2023-29) released on Juchao Website (www.cninfo.com.cn) on Nov. 4 2023nd th The “Resolution of the 2nd meeting of 11th session of the BOD” (Notice No.:
The 2 meeting of 11 2023-11-
2023-11-25 2023-30) released on Juchao Website (www.cninfo.com.cn) on Nov. 25
session of the BOD 24
2023
The 3rd meeting of 11th 2023-12- rd th20 The “Resolution of the 3 meeting of 11 session of the BOD” (Notice No.:session of the BOD 05 23-12-06 2023-34) released on Juchao Website (www.cninfo.com.cn) on Dec. 6 2023th th The “Resolution of the 4th meeting of 11th session of the BOD” (Notice No.:
The 4 meeting of 11 2023-12-
2023-12-22 2023-38) released on Juchao Website (www.cninfo.com.cn) on Dec. 22
session of the BOD 21
2023
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 Absent the
meeting Times of attending the Times of Meeting for
Times of
Director supposed to Presence Board Meeting entrusted
Times of
Absence the second
attend the
attend in the by presence time in a row general
reporting communication (Y/N) meeting
period
Wang Zhikai 4 3 1 0 0 N 1
Hu Xianghai 12 7 4 1 0 N 3
Gu Cheng 4 2 1 1 0 N 0
Zhang
Guoyuan 4 2 1 1 0 N 0
Zheng
Xiangpeng 4 3 1 0 0 N 1
Lu Yuhe 12 9 3 0 0 N 4
Zhao Rubing 12 8 4 0 0 N 4
Bi Weimin 12 6 6 0 0 N 4
Liu Haifeng 12 11 1 0 0 N 4
Ni Yue 8 6 2 0 0 N 2
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 Period
4. 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 mattersoccurred 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 “2023 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
Specific
circumsta
Number Important Other nces of
Committee Member of comments and perform the
name s meetings Date of meeting Meeting content suggestions ance of objection
held made duties (if
applicabl
e)
(1) Deliberated the
2022 Internal
Control Evaluation
Report of the
Company;
(2) Deliberated the
2023 Internal Audit
and Post Investment
Evaluation Work
April 24 2023 - - NA
Plan of the
Company;
(3) Deliberated the
Company's 2022
Financial Report;
(4) Deliberated the
Company's Q1
2023 Financial
Report.The Audit
Bi (1) Deliberate the
Committee
Weimin 2022 Internal
of the 10th
Zhao Control System
session of 4
Rubing Work Report of the
Board of
Lu May 30 2023 Company; - - NA
Directors of
Yuhe (2) Deliberated the
the Company
2023 Major Risk
Assessment Report
of the Company.
(1) Deliberated the
Company's 2023
Half Year Financial
Report;
(2) Deliberated the
Proposal on
Financial Write-off
August 25 2023 of Asset Disposal - - NA
and Asset
Impairment
Provision of
Subsidiaries;
(3)Deliberated the
Implementation
Plan and AnnualPlan for the
Construction of the
Company's
Compliance
Management
System.Deliberated the
Company's Third
October 26 2023 - - NA
Quarter Financial
Report for 2023
Deliberated the
Proposal on "One
Agreement and
Two Letters of
February 16 2023 - - NA
Responsibilities"
for Members of the
Company's
Management Team
The 10th Deliberated the
session of Proposal on the
Board of Remuneration of
Zhao
Directors Directors and
Rubing April 24th 2023 - - NA
Remuneratio Senior Management
Bi 3
n and Personnel of the
Weimin
Assessment Company for the
Ni Yue
Committee Year 2022
of the Inquire and
Company evaluate the
Report Inquiry and performance of
Evaluation of senior
Senior Management management
June 11 2023 - NA
Personnel of the personnel for
Company for the the year 2022
Year 2022 and provide
assessment
opinions
After
collecting
organizing and
verifying the
educational
The
Deliberated the background
Nomination Zhao
Proposal on professional
Committee Rubing
Nominating title and work
of the 10th Bi
1 October 18 2023 Candidates for the experience of - NA
session of Weimin
11th Session of the candidates
Board of Liu
Board of Directors for the 11th
Directors of Haifeng
of the Company session of
the Company
Board of
Directors the
candidates
were
nominated
The Strategy Zhao (1) Deliberated the
Committee Rubing Draft
3 April 24 2023 - - NA
of the 10th Liu Comprehensive
session of Haifeng Budget for the YearBoard of Hu 2023 of the
Directors of Xiangha Company;
the Company i (2) Deliberated the
Proposal on
Dongguan Logistics
Company's
Investment in the
Construction of
Berth 3.Deliberated the
Proposal on the
Public Listing and
July 8 2023 Transfer of 51% - - NA
Equity of Wuhan
Jiacheng Biological
Products Co. Ltd
Deliberated the
Proposal on the
Public Listing and
Transfer of 51%
September 20 2023 - - NA
Equity and Debt of
Wuhan Jiacheng
Biological Products
Co. Ltd
(1) Deliberated the
Proposal on
Amending the
Work Regulations Propose to hire
of the Audit Grant Thornton
Committee of the Certified Public
The Audit Bi Company's Board Accountant
Committee Weimin of Directors LLP(Special
of the 11th Zhao (2) Deliberated the General
session of Rubing 1 November 24 2023 Work Plan for Partnership)as - NA
Board of Zhang Supervision and the company's
Directors of Guoyua Evaluation of the financial audit
the Company n Company's Internal and internal
Control System control audit
from 2023 to 2025 agency for the
(3) Deliberated the year 2023
Proposal on Hiring
an Accounting Firm
for the Year 2023
Deliberated the
Proposal on
Amending the
The 11th Work Regulations
session of November 24 2023 of the Company's - - NA
Board of Zhao Board of Directors
Directors Rubing Compensation and
Remuneratio Bi
2 Assessment
n and Weimin Committee
Assessment Lu
Committee Yuhe Deliberated the
of the Proposal on the
Company AppointmentDecember 21 2023 - - NA
Agreement of
Company
ManagementMembers and the
Annual Business
Performance
Responsibility
Letter
The Deliberated the
Nomination Zhao Proposal on
Committee Rubing Amending the
of the 11th Wang Work Regulations
1 November 24 2023 - - NA
session of Zhikai of the Nomination
Board of Liu Committee of the
Directors of Haifeng Company's Board
the Company of Directors
(1) Proposal on
Amending the
Work Regulations
of the Strategic
The Strategy
Wang Committee of the
Committee
Zhikai Board of Directors
of the 11th
Zhao of the Company
session of 1 November 24 2023 - - NA
Rubing (2) Proposal on the
Board of
Gu Acquisition of 30%
Directors of
Cheng Minority Equity
the Company
Project of Big
Kitchen by
Shenzhen Cereals
Group Co. Ltd
VIII. Works of the Board of Supervisors
Does the 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) 114
Employee in-post of main subsidiaries at period-end (people) 1101
The total number of current employees at period-end (people) 1215
The total number of current employees to receive pay (people) 1215
Retired employee’ s expenses born by the parent Company and
main subsidiaries (people) 0
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 374
Salesperson 108
Technicians 144
Financial personnel 93
Administrative personnel 496
Total 1215
Education background
Education Numbers (people)Postgraduate 161
Undergraduate 479
3-years regular college graduate 254
Graduate of secondary special school 72
High school and below 249
Total 1215
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 2023 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 plansor 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 can not issue new shares to the public issue convertible
corporate bonds or allot shares to original shareholders;
(7) Where a shareholder illegally occupies the company’s funds the company shall deduct the cash 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 Yproper role (Y/N):
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): Not applicable
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) 2.0
Equity base of distribution plan (Share) 1152535254
Cash bonus distribution (RMB) (tax inclusive) 230507050.80
Cash bonus distribution in other ways (i.e. share buy-backs)
(RMB) 0.00
Total cash bonus (including other ways) (RMB) 230507050.80
Profit available for distribution(RMB) 416632837.22
Ratio of total cash dividend (other ways included) in total profit
distribution 100%
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 statement for year
of 2023 the net profit attributable to shareholders of parent company amounted to 347824733.68 yuan; As of Dec. 31 2022 the
profit of parent company that can be distributed for shareholders was 416632837.22 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 2023 to
shareholders general meeting: based on total share capital 1152535254 shares of the Company on Dec. 31 2023 distribute 2.0
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 ofresponsibilities 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 Measures Progress Follow-up
Name Integration plans Integration encountereprogress 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 16 2024Disclosure index of full internal control “Internal control self-appraisal report of Shenzhen Cereals Holdings Co. Ltd. inevaluation report 2023” 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 defectsare as follows:
with other defects in a timely manner (1) The lack of democratic decision-
Qualitative criteria cause unpreventable or undetectable and making process such as the lack ofdecision-making on major issues an
uncorrectable material misstatement in the important appointment and dismissal
of cadres major investment decisionsfinancial statements. large sums of money using the
The Company may indicate the presence decision-making process;(2) Decision-making process is not
of significant deficiencies in internal scientific such as major policy
control over financial reporting if mistakes resulting in significantproperty damage to the Company;
following circumstances: (3) Serious violations of national laws
(1) The directors supervisors and senior and regulations;(4) Loss of key executives or loss of a
management fraud; large number of key talent;
(2) Enterprise corrects mistake which has (5) Frequent negative news in mediawhich causes nationwide impact.
been published in financial statements; 2. The qualitative criteria for important
(3) CPA finds material misstatement in defects are as follows:
current financial statements but internal (1) The decision-making process is not
control during operation fails to find the perfect;
misstatements; (2)The company’s internal
(4) Oversight of internal control by management system has not been
corporate audit committee and the internal effectively implemented resulting in
audit is invalid; losses;
(5) Particularly important or significant (3) Frequent occurrence of negative
deficiencies found during internal control news in the media with certain
has not been rectified; influence;
(6) The lack of business-critical system or (4) The general defects in the internal
invalid system. control evaluation have not been
2. Important defect: defect alone or corrected.
together with other defects in a timely 3. General defects refer to other
manner cause unpreventable or internal control defects that do not
undetectable and uncorrectable material constitute major defects or important
misstatement in the financial statements defects.although not reach and exceed the level of
importance should lead to management
attention misstatements.
3. General Defects: other internal defects
do not pose a significant or important
defect control deficiency.Major defects: Major defects: the amount of direct
property loss ≥ 12 million yuan have
Potential misstatement of total assets ≥ 1% been officially disclosed outside the
of total assets; Company disclosed in periodic reports
and adversely affected.Potential misstatement of operating Important defects: 3 million yuan < the
revenue ≥ 1% of operating income; amount of direct property loss < 12
Potential misstatement of total profit≥ 5% million yuan punished by the state
Quantitative standard of total profit. government but no negative impact on
Important defects: the disclosure of the company’s
0.5% of total assets ≤ Potential regular reports;
misstatement of total assets <1% of total General defects: the amount of direct
assets property loss ≤ 3 million yuan
0.5% of operating income≤ Potential punished by the provincial (including
misstatement of operating revenue <1% of provincial) government but nooperating income negative impact on the disclosure of
2.5% of total profit≤ Potential our company’s regular reports;
misstatement of total profit <5% of total
profit;
General defects:
Potential misstatement of total assets
<0.5% of total capital;
Potential misstatement of Operating
revenue <0.5% of operating income;
Potential misstatement of total profit
<2.5% of total profit;
Amount of significant defects in
financial reports 0
Amount of significant defects in non-
financial reports 0
Amount of important defects in financial
reports 0
Amount of important defects in non-
financial reports 0
2. Internal control audit report
□ Applicable □ Not applicable
Deliberations in Internal Control Audit Report
BDO China Shu Lun Pan Certified Public Accountant LLP believes as of Dec. 31 2022 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) 2023-04-16
Index of audit report of internal control The internal control audit report of SHENZHEN CEREALS HOLDINGS CO. LTD.(full-text) in 2023 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
Does the accounting firm issue an internal control audit report with non-standard opinions
□ Yes □ No
Is the internal control audit report issued by the accounting firm consistent with the self-evaluation report of the board of directors
the Board
□ 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 instandardized 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 Responsibility
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
revitalizationThoroughly implement the important teachings of General Secretary Xi Jinping regarding the “work of agriculture rural areas andfarmers” as well as the strategy of rural revitalization in accordance with the relevant work arrangements of the provincial andmunicipal committees focusing on the objectives of the “High-Quality Development Project for Hundreds of Counties Thousands ofTowns and Myriad Villages”. Fully leverage the advantages of company resources strengthen communication and collaboration
with counterpart assistance units mobilize social forces extensively and solidly promote the effective connection between
consolidating and expanding the achievements in poverty alleviation and rural revitalization.First enhance industrial drive to promote the high-quality and efficient development of local specialty agricultural industries.Leveraging our strengths and experience in grain and oil production processing and storage we focus on the peanut industry in the
assisted towns and key villages where the first secretaries are stationed. We coordinate internal and external resources of the
company to provide assistance and support in various aspects including grain and oil processing technology quality control food
safety and expanding channel sales. Second strengthen guidance on "Zhenpin" declaration to support the upgrading of local high-
quality agricultural products. We provide comprehensive guidance to enterprises in assisted areas on the policies and procedures for
"Zhenpin" declaration assisting local specialty agricultural products in applying for the "Zhenpin" designation and helping establish
a sound connection with deep food standards system. Third strengthen the connection between production and sales to assist farmers
in achieving abundant yields and smooth sales. The company’s subsidiaries have signed a joint agreement for industrial assistance
and development with the town and village assistance team stationed in Tuocheng Town Longchuan County. Leveraging the
company’s operational platform and the market resources of both parties we aim to expand the market channels for high-quality
agricultural products through collaborative branding effectively promoting the integrated development of industries and rural
revitalization. Fourth increase consumer assistance efforts to fully promote rural revitalization. We meticulously plan party buildingindustrial assistance and consumer assistance in assisted areas adopting the method of “purchase instead of sales and buying insteadof assistance”. In 2023 we purchased agricultural and sideline products from assisted areas such as Heyuan in Guangdong
Liangshan and Litang in Sichuan exceeding 8.5 million yuan. This solidly supports the industrial development of assisted areas and
continues to consolidate and expand the achievements in poverty alleviation.Section VI. Important Events
I. Implementation of commitment
1. Commitments completed in Period and those without completed till 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
enterprises or the failure to
Commitments handle write-off procedures
in assets in time the commitment
reorganization 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
the following conditions: (1)
Shenzhen The lessor has not provided
Agricultural Other the ownership documentary Implement Normal
Power commitments evidence of the property
2018-03-23 as promised performance
and/or the documentary
evidence proving the lessor
has the right to rent out the
house property. (2) The lease
term of part of the leased
house property is more than
20 years; (3) Shenzhen
Cereals Group and itssubsidiaries 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
and promote Shenzhen
Cereals Group or its
Shenzhen Other subsidiaries to go throughAgricultural commitments the formalities. After the 2018-03-23
Implement Normal
Power completion of this as promised performance
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 commitment
party will bear the relevant
legal liability and fullycompensate 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 use
period the commitment
party will fully assist urgeand 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
non commercial 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 Sungang
Warehouse 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. a
subsidiary of Shenzhen
Cereals Group has notapplied 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 theAgricultural commitments Company’s System Reform 2018-03-23
Implement Normal
Power and System Evaluation of as promised performanceGroup 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 to Maintain the
Position of Controlling
Shareholders of Listed
Companies: Within 60
months from the date of
completion of this
transaction the Company
promises not to voluntarily
give up the controlling
shareholder status in the
listed company and
guarantees that the
controlling shareholder
Shenzhen status of the listed company
Agricultural Other will not be changed due to 2018-03-23 2023-11-12 Normal
Power commitments reasons of the Company performanceduring this period nor assists
any other party to seek the
controlling shareholder
status of the listed company.Within 60 months from the
date of completion of this
transaction the Company
will not take the initiative to
change the status of the
controlling shareholder of
the listed company through
any actions including
reducing the share holding in
the listed company.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
Shenzhen
Agricultural Other
supervisors and senior
commitments management to the listed 2018-03-23
Implement Normal
Power company that will cause the as promised performance
proportion of public shares
of the listed company not
meet the requirements of the
Listing Rules of Shenzhen
Stock Exchange.; nor will
vote for the relevant
shareholders’ meeting and/or
board resolutions forselecting 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
referred to as
“Shenshenbao” “ListedCompany”) intends to
purchase the 100% equity of
Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”
“target company”) held by
the shareholders of SZCG
through issuance of shares.In view of the two
unfinished major
lawsuits/arbitration of
SZCG Shenzhen Food
Shenzhen Other Materials Group Co. LtdAgricultural commitments (hereinafter referred to as 2018-04-02
Implement Normal
Power “the commitment party”) the as promised performance
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
Shenzhen Other earlier stage of Pinghu GrainAgricultural commitments Depot: Shenzhen Shenbao 2018-04-02
Implement Normal
Power Industrial Co. Ltd. intends as promised performance
to purchase the 100% equity
of Shenzhen Cereals Group
Co. Ltd. (hereinafter
referred to as “SZCG”) held
by the shareholders of SZCGthrough 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 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 Cereals Group and
its subsidiaries that have not
obtained the housing
ownership certificate:
Shenzhen Shenbao Industrial
Co. Ltd. (hereinafter
referred to as “Shenshenbao”
and “listed company”)
intends to purchase the 100%
equity of Shenzhen Cereals
Group Co. Ltd. (hereinafter
referred to as “SZCG”
“target company”) held by
the shareholders of SZCG
through issuance of shares.Shenzhen Other Shenzhen Food MaterialsAgricultural commitments Group Co. Ltd (hereinafter 2018-04-02
Implement NormalPower referred to as “the as promised performancecommitment 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
Shenzhen Commitment reform of Shenzhen Shenbao
Agricultural on restricted Industrial Co. Ltd. held by 2018-04-04 Implement Normal
Power sale of shares Shenzhen Investment as promised performance
Holdings Co. Ltd.:
Shenzhen Food Materials
Group Co. Ltd (hereinafter
referred to as “FoodMaterials Group”) accepts
79484302 shares of A
shares of Shenshenbao A
(000019) (including
66052518 shares of
unrestricted A shares and
13431784 shares of
restricted A shares ) held by
Shenzhen Investment
Holdings Co. Ltd.(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 to
as “Agricultural Products”)
and Shenzhen Investment
Holdings the company’s
non-tradable shareholders
will sell their shareholdings
after consideration which
account for 6%-8% of the
company’s total share capital
to the management of the
company in three years
based on the shareholding
ratio of Agricultural
Products and Shenzhen
Investment Holdings after
the share reform (i.e.accounting for 6%-8% of the
company’s total share capital
of 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.Commitments Commitment Letter on
on inter- Avoiding Horizontal
Shenzhen industry Competition: In view of the
Agricultural competition fact that Shenzhen Shenbao 2018-06-08 Implement Normal
Power related Industrial Co. Ltd. as promised performance
transactions (hereinafter referred to as
and capital “Listed Company”) intendsoccupancy to acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. held by Shenzhen
Food Materials Group Co.Ltd(hereinafter referred to as
“the Company”) by issuing
shares to purchase assets the
Company has made the
following commitments: 1.As of the issue date of this
Commitment Letter the
Company and other
enterprises controlled by the
Company have not engaged
in any business or activity
that directly or indirectly
constitute horizontal
competition to the Listed
Company and its subsidiaries
in the business and
guarantees that it will not
engage or induce any
enterprise controlled by the
Company to engage in any
business or activity that
directly or indirectly
constitute horizontal
competition to the Listed
Company and its subsidiaries
in the future. 2. If the
business opportunity
obtained by the Company
and other enterprises
controlled by the Company
constitutes horizontal
competition or may
constitute horizontal
competition to the main
business of the Listed
Company and its
subsidiaries the Company
will immediately notify the
Listed Company and try its
best to give the business
opportunity to the Listed
Company to avoid horizontal
competition or potential
horizontal competition with
the Listed Company and its
subsidiaries and ensure the
interests of Listed Company
and other shareholders of
Listed Company are not
impaired. 3. If the main
business of the Listed
Company and its subsidiaries
constitutes horizontal
competition or may
constitute horizontal
competition to the Company
and other enterprises
controlled by the Company
due to business development
or extension the Company
and other enterprises
controlled by the Company
shall take the followingfeasible measures based on
specific circumstance to
avoid competition with the
Listed Company: (1) Stop
business that constitutes
competition or may
constitute competition to the
Listed Company; (2)Transfer
the competitive businesses
and assets to the Listed
Company at fair prices; (3)
Transfer the competitive
business to an unrelated third
party; (4) Other ways to
protect the interests of the
Listed Company; 4. If the
Company violates the above
commitments and causes
losses to the Listed
Company the Company will
compensate the Listed
Company for the incurred
losses after the losses are
determined. 5. The above
commitments continue to be
valid during the period when
the Company is the
controlling shareholder of
the Listed Company.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
Commitments Company has made the
on inter- following commitments: 1.Shenzhen industry The enterprises directly or
Agricultural competition indirectly controlled or Implement Normal
Power related affected by the Company and
2018-06-08 as promised performance
transactions the restructured company
and capital and its holding companies
occupancy will regulate and minimize
the related transactions. For
related transactions that
cannot be avoided or have
reasonable reasons to occur
the Company promises to
follow the market-oriented
principle of justice fairness
and openness and sign
agreements in accordance
with relevant laws and
regulations regulatory
documents and articles of
association perform legal
procedures fulfill
information disclosureobligations and handle
relevant approval procedures
in accordance with the law
and ensure not to damage the
legitimate rights and
interests of the company and
other shareholders through
related transactions. 2. The
enterprises directly or
indirectly controlled or
affected by the Company
will strictly avoid borrowing
from the company and its
holding and shareholding
companies occupying the
funds of the company and its
holding and shareholding
companies or embezzling
the company’s funds by
taking advance payments
and compensatory debts
from the company and its
holding and shareholding
companies. 3. After the
completion of this
transaction the Company
will continue to exercise its
shareholder rights in strict
accordance with the relevant
laws and regulations
regulatory documents and
the relevant provisions of the
Articles of Association; and
fulfill its obligation of
avoiding voting when the
company’s general meeting
of shareholders is voting on
related transactions
involving the Company. 4.The Company guarantees not
to obtain any improper
interests through the related
transactions or cause the
company and its holding and
shareholding companies to
bear any wrongful
obligations. If the company
or its holding and
shareholding companies
suffer loses or the interests
of the company or its
holding and shareholding
companies are embezzled by
related transactions the
Company will the losses of
the company and its holding
and shareholding companies.Commitment on the
Standardized Operation of
Listed Company: Shenzhen
Shenzhen Shenbao Industrial Co. Ltd.Agricultural Other intends to purchase 100% Implement Normal
Power commitments equity of Shenzhen Cereals
2018-06-08 as promised performance
Group Co. Ltd. (hereinafter
referred to as “SZCG”) held
by Shenzhen Food MaterialsGroup 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
transaction the commitment
party promises to ensure that
the listed company will
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 of
listed 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 thatindependent 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 laws
regulations 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 (hereinafterShenzhen referred to as “theAgricultural Othercommitments Company”) through issuance 2018-06-08
Implement Normal
Power of shares. The Company has as promised performance
made the following
commitments: 1. The Target
Company is a limited
liability company established
according to law and is
validly existing possesses
statutory business
qualifications and the Target
Company has obtained all
the approvals consents
authorizations and licenses
required for its establishment
and operation and all
approvals consents and
authorizations and licensesare valid and there is no
reason or case that may
result in the invalidation of
the above approvals
consents authorizations and
licenses. 2. The Target
Company has no major
violations of laws and
regulations in the production
and operation in the last
three years there is no case
that the Target Company
should be terminated
according to relevant laws
regulations normative
documents and the
company’s articles of
association. Except for
litigations arbitrations and
administrative penalties
disclosed in the
Restructuring Report the
Target Company does not
have any unsettled or
foreseeable major litigation
arbitration and
administrative penalty that
adversely affect its
operations or the amount is
more than 10 million yuan.
3. The Target Company will
perform the labor contracts
with its employees
independently and
completely. 4. If the Target
Company is subject to the
fees or penalties of the
relevant competent
authorities in terms of
industry and commerce
taxation employee salaries
social security housing
provident fund business
qualifications or industry
supervisors due to the facts
already existing before the
reorganization the Company
will fully compensates all the
outstanding fees of the
Target Company and bear all
the losses suffered by
Shenshenbao and the Target
Company. 5. The Target
Company legally owns the
ownership and/or use rights
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 thetransfer 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
that Shenzhen Shenbao
Industrial Co. Ltd.(hereinafter referred to as
“Shenshenbao”) intends to
acquire 100% equity of
Shenzhen Cereals Group
Co. Ltd. (hereinafterreferred 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
Shenzhen the labor personnel and
Agricultural Other compensation management Implement Normal
Power commitments of Shenshenbao and Target
2018-06-08 as promised performance
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 relatedparties. (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 Target
Company 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 economicorganizations 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; for
the 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 thisrestructuring the financial
personnel of Shenshenbao
and Target Company shall
not take part-time jobs in the
Company and other
companies and enterprises
controlled by the Company
or other economic
organizations and related
parties. (4) After the
completion of this
restructuring Shenshenbao
and Target Company shall be
able to make financial
decisions independently the
Company shall not interfere
with the use of funds of
Shenshenbao and Target
Company. (5) After the
completion of this
restructuring Shenshenbao
and Target Company shall
pay taxes independently
according to law. If the
Company violates the above
commitments it will bear all
the losses caused to
Shenshenbao and Target
Company.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
Commitments Agricultural Products have
Shenzhen on inter- made the following
Agricultural industry commitments: 1. As of the
Power competition issue date of this Implement Normal
Agricultural related commitment letter the
2018-06-08 as promised performance
Products transactions commitment party and itsand capital related person do not have
occupancy any illegal use of funds and
assets of the listed company
and SZCG and there is no
case that the listed company
and SZCG provide illegal
guarantee for the
commitment party and its
related person. 2. After the
completion of the
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 norrequire 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 keeps profitable forecast during the reporting period
description reasons for reaching the original profitable forecast
□ Applicable□Not applicable
II. Non-operational fund occupation by controlling shareholders and its related party
□ Applicable□ Not applicable
No non-operational fund occupation by controlling shareholders and its related party 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 Board of Directors the board of supervisors and Independent Directors
(if applicable) for “Qualified Audit Opinion” issued by CPA
□ Applicable□Not applicable
VI. Explanation of the changes in accounting polices accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
□Applicable □ Not applicable
* Interpretation of Enterprise Accounting Standards No. 16The Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for Enterprises (CK[2022]No. 31) in November
2022 (hereinafter referred to as “Interpretation No. 16”).
Interpretation No. 16 stipulates that for a single transaction that is not a business merger does not affect accounting profits or taxable
income (or deductible losses) at the time of transaction and results in equal taxable temporary differences and deductible temporary
differences due to the initial recognition of assets and liabilities the corresponding deferred income tax liabilities and deferred
income tax assets shall be recognized separately at the time of transaction in accordance with relevant provisions such as Enterprise
Accounting Standard No. 18- Income Tax. For the above-mentioned transactions that occurred between the beginning of the earliest
period for the first implementation of the above regulations in financial statement presentation and the date of implementation of this
interpretation the enterprise shall adjust the cumulative impact to the beginning retained earnings and other related financial
statement items in the earliest period for financial statement presentation in accordance with the above regulations. The above
accounting treatment regulations will be implemented from January 1 2023.If the leasing liabilities and right of use assets recognized by the company for leasing business as well as the estimated liabilities and
corresponding assets related to abandonment obligations result in taxable temporary differences and deductible temporary
differences adjustments shall be made in accordance with the provisions of Interpretation No. 16.The impact of implementing the above accounting policies on the consolidated balance sheet as of December 31 2023 and the
consolidated income statement for the year 2023 is as follows:
Items of consolidated balance sheet
(Dec. 31 2023) Impact amount
Deferred income tax assets 54748.68
Deferred income tax liabilities 29036.59
Retained income 25712.09
Con’:
Items of consolidated profit statement
(2023) Impact amount
Income tax expense -122885.51
Net profit 122885.51
The impact of implementing the above accounting policies on the consolidated balance sheet as of December 31 2022 and the
consolidated income statement for the year 2022 is as follows:
Items of consolidated balance sheet
(Dec. 31 2022) Before adjustment Adjustment amount After adjustment
Deferred income tax assets 40240466.35 154697.65 40395164.00
Deferred income tax liabilities 13381949.47 6100.06 13388049.53
Retained income 1910954084.79 148597.59 1911102682.38
Con’
Items of consolidated profit statement
(2022) Before adjustment Adjustment amount After adjustment
Income tax expense 52611993.87 -169799.76 52442194.11
Net profit 418298868.22 169799.76 418468667.98
The impact of implementing the above accounting policies on the consolidated balance sheet as of January 1 2022 is as follows:
Items of consolidated balance sheet
(Jan. 1 2022) Before adjustment Adjustment amount After adjustmentItems of consolidated balance sheet
(Jan. 1 2022) Before adjustment Adjustment amount After adjustment
Deferred income tax assets 40529425.47 11342.55 40540768.02
Deferred income tax liabilities 13868191.82 32544.72 13900736.54
Retained income 1812541701.27 -21202.17 1812520499.10
* The cumulative impact of changes in accounting policies in this period
Impacted items Current period Last period
Beginning net assets -21202.17
Including: retained income -21202.17
Net profit 169799.76 -21202.17
Ending net assets 148597.59
Including: retained income 148597.59
VII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□Applicable □ Not applicable
There were no changes in the scope of consolidated financial statements during the reporting period of the company.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 1
Name of domestic CPA Gao Hong Wang Zhongnian
Continuous life of auditing service for domestic CPA 1
Whether re-appointed accounting firms in this period or not
? Yes□ No
Whether to hire a new accounting firm during the audit period？
□Yes □No
Does the replacement of accounting firm follow the approval process？
?Yes□No
Detailed explanation on the situation regarding the change of appointment or change of accounting firm.The company held the second meeting of the 11th session of the Board of Directors and the third extraordinary general meeting of
shareholders on November 24 2023 and December 21 2023 respectively deliberating and approved the Proposal to Hire
Accounting Firm for the Year 2023. The annual audit institution of the company was changed from BDO China Shu Lun Pan
Certified Public Accountant LLP to Grant Thornton Certified Public Accountant LLP (Special General Partnership). The company
had necessary communication with BDO China Shu Lun Pan Certified Public Accountant LLP on related matters. BDO China Shu
Lun Pan Certified Public Accountant LLP has no objection.Appointment of internal control auditing accounting firm financial consultant or sponsor
□Applicable □ Not applicable
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 Trial result and Execution(in 10 accrual liability Progress of Disclosure Disclosure(arbitration) thousand (Y/N) influence judgment date index
yuan)
Yes the single
As of 31 loan contract The Company
December dispute from actively makes
2022 other subordinate use of the
lawsuits that enterprise of the advantageous
did not meet Company is resources of
the disclosure expected to form internal legal
standards for an accrual liability affairs and
After
external laws comprehensivesignificant of 5136600.00 firm to follow up analysis thelawsuits yuan
mainly approximately. and deal with the
result of the
cases involved It is
included 10014.95 Other lawsuit- lawsuit-relatedcases. At in the lawsuits
actively --
disputes over related cases are will not have a advancing
sales contracts relatively small in present the significant
loan contracts individual amount Company is impact on the
construction and will not have a responding to
contracts legal significant impact and dealing with
Company
service on the Company the cases
contracts lease when analyzed in effectively in
contracts etc. conjunction with accordance with
the progress of relevant laws
these cases. and regulations
XII. Penalty and rectification
□ Applicable□Not applicable
No penalty and rectification for the Company in reporting period.XIII. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable□Not applicableXIV. Major related transaction
1. Related transaction with routine operation concerned
? Applicable□ Not applicable
Assesse Settlem
Pricing Book ent
Type of Content d valueprincipl value of Trading
of of Transfe method
Related related es for transfer gains/lo DisclosRelated related transfer r price of Disclos
relation party related red sses ureparties party red (10000
ships related
ure date
transact party assets (10000 indextransact assets yuan)
ion transact (10000
party yuan)
ion (10000
ions yuan) transact
yuan) ion
Shenzh
Subsidi
en
ary
Lezhon
compan
g Acquisi Minorit
y
Supply tion of y equity Market Bank
executi 154.45 167.24 167.24
Chain minorit acquisit price transfer
ve
Manage y equity ion
holding
ment
compan
Co.y
Ltd
The
holding
Shenzh compan
en y of the
Qianmo senior
Acquisi Minorit
Supply manage
tion of y equity Market Bank
Chain ment of 154.45 167.24 167.24
minorit acquisit price transfer
Manage the
y equity ion
ment subsidi
Co. ary of
Ltd the
compan
y
Reasons for significant differences
between transfer price and book value or Appreciation of assessment
assessed value (if any)
The impact on the company's operating
No significant impact
results and financial condition
If the relevant transactions involve
performance agreements the
Not applicable
achievement of performance during the
reporting period
There were no related transactions related to daily operations during the reporting period of the company.
2. Assets or equity acquisition and sales of assets and equity
□ Applicable□ Not applicable
No related transaction concerning the asses or equity acquisition and sold in the period3. Related transaction of foreign investment
□ Applicable□Not applicable
No related transaction of foreign investment occurred in the period
4. Related credits and liabilities
□ Applicable□ Not applicable
No related credits and liabilities occurred in period
5. Contact with the related finance companies
□ Applicable□Not applicable
There are no deposits loans credits or other financial business between the finance companies with associated relationship 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 implementations
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable□Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable□Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable□Not applicable
No leasing in the Period2. 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
Type Fund sources Amount occurred Undue balance Overdue amount amount accrual foroverdue financial
management
Bank financial
products Owned fund 53000 3000 0 0
Total 53000 3000 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 September 11 2023 the board of directors of the company received a written resignation report from Mr. Meng Xiaoxian a
member of the company’s party committee and deputy GM. Due to job transfer Mr. Meng Xiaoxian applied to resign from theposition of deputy GM and will no longer hold any other positions in the company after resigning. Please refer to the “Notice on theResignation of Senior Management Personnel of the Company” published on September 13 2023 on the website of Juchao Website
(www.cninfo. com. cn).
(2) On September 15 2023 the company’s supervisory board received a written resignation report from Ms. Wang Huimin
Secretary of the Discipline Inspection Commission and Chairman of the Supervisory Board. Due to job transfer Ms. Wang Huimin
applied to resign from her position as the Chairman of the Supervisory Board and will no longer hold any other positions in the
company after resigning. Please refer to the “Notice of the Company on the Resignation of the Chairman of the Supervisory Board”published on September 19 2023 on the Juchao website (www.cninfo. com. cn).
(3) The second extraordinary general meeting of shareholders held by the company on November 3 2023 deliberated and approved
the Proposal on the Election of Non-independent Directors for the Board of Directors the Proposal on the Election of Independent
Directors for the Board of Directors and the Proposal on the Election of the Board of Supervisors. Mr. Wang Zhikai Mr. Hu
Xianghai Mr. Gu Cheng Mr. Zhang Guoyuan Mr. Zheng Xiangpeng and Ms. Lu Yuhe were elected as the 11th session of non-
independent directors of the company; Elected Mr. Zhao Rubing Ms. Bi Weimin and Mr. Liu Haifeng as the 11th session of
independent directors of the company; Elected Ms. You Hongxia and Ms. Liu Xinqing as the 11th session of supervisor of the
company. Ms. Ni Yue the 10th session of director of the company Mr. Liu Ji and Ms Qian Wenying the 10th session of supervisor
resigned upon the expiration of their terms of office. Please refer to the Announcement on the Resolution of the Second
Extraordinary General Meeting of Shareholders of the Company for 2023 which was published on November 4 2023 on Juchao
Website (www.cninfo. com. cn).
(4) The first meeting of the 11th session of Board of Directors held by the company on November 3 2023 deliberated and approved
the Proposal on Electing the Chairman of the 11th Session of Board of Directors the Proposal on Appointing the General Manager of
the Company the Proposal on Appointing Senior Management Personnel of the Company and the Proposal on Electing Members of
the Special Committees of the 11th Session of Board of Directors. Elected Mr. Wang Zhikai as the Chairman of the 11th session
Board of Directors of the company; Appointed Mr. Hu Xianghai as the 11th session of General Manager of the company; Appointed
Mr. Chen Xiaohua Mr. Shen Hua Mr. Xiao Hui and Mr. Du Jianguo as the 11th session of deputy GM of the company; Appointed
Ms. Lu Yuhe as the 11th session of chief financial officer of the company; Appointed Mr. Chen Xiaohua as the secretary of the 11th
session of Board of Directors of the company; Mr. Dai Bin the 10th session of deputy GM of the company resigned upon the
expiration of his term. Elected Mr. Wang Zhikai Mr. Zhao Rubing and Mr. Gu Cheng as members of the Strategic Committee of the
11th session of Board of Directors of the company and elected Mr. Wang Zhikai as the Chairman; Elected Mr. Zhao Rubing Mr.
Wang Zhikai and Mr. Liu Haifeng as members of the Nomination Committee for the 11th session of Board of Directors of the
company with Mr. Zhao Rubing serving as the Chairman; Elected Ms. Bi Weimin Mr. Zhao Rubing and Mr. Zhang Guoyuan as
members of the Audit Committee of the 11th session of Board of Directors of the company with Ms. Bi Weimin serving as the
Chairman; Elected Mr. Zhao Rubing Ms. Bi Weimin and Ms. Lu Yuhe as members of the 11th session of Board of Directors
Compensation and Assessment Committee with Mr. Zhao Rubing serving as the Chairman. Please refer to the Announcement on the
Resolution of the First Meeting of the 11th session of Board of Directors of the Company which was published on November 4 2023
on Juchao Website (www.cninfo. com. cn).XVII. Significant event of subsidiary of the Company
?Applicable □Not applicable
1. On April 24 2023 the company held the 27th meeting of the 10th session of Board of Directors deliberating and approving the
Proposal on the Investment in the Construction of Berth 3 by Dongguan Shenliang Logistics Co. Ltd. . It was agreed that Dongguan
Shenliang Logistics Co. Ltd. a wholly-owned subsidiary of the company will invest in the construction of the expansion project of
the deep grain storage supporting wharf in Xinsha South Operation Area of Machong Port Dongguan Port (Berth 3 project). The
project plans to build one 20000 ton grain berth with a total investment of 175.00 million yuan. Please refer to the Announcement of
the Resolution of the 27th Meeting of the 10th Session of Board of Directors of the Company and the Announcement of the Company
on the Investment and Construction of Berth No. 3 by Dongguan Shenliang Logistics Co. Ltd. published on April 26 2023 on
Juchao Website (www.cninfo. com. cn).
2. The company held the 29th meeting of the 10th session of Board of Directors on July 8 2023 and the 31st meeting of the 10th
session of Board of Directors on September 20 2023 deliberating and approving the Proposal on Publicly Listing and Transferring
51% Equity and Debt of Wuhan Jiacheng Biological Products Co. Ltd. and approving SZCH to transfer its 51% equity and 10.00million yuan debt of Wuhan Jiacheng through public listing and transfer. On November 14 2023 SZCH signed an equity transfer
agreement with the transferee Tianyu Ecological Environment Co. Ltd. As of now SZCH has received all equity debt and related
interest and has completed the equity delivery and handover procedures between enterprises.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
Bonu
share Capitalizatio
Proportio s Other Subtota Proportio
Amount s n of public Amount
n share s l n
issue reserve
s
d
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 shares 684569567 59.40% 0 0 0 0 0 684569567 59.40%
3. Other domestic
shares 0 0.00% 0 0 0 0 0 0 0.00%
Including:
Domestic legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s 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 shares 0 0.00% 0 0 0 0 0 0 0.00%
overseas
nature person’s 0 0.00% 0 0 0 0 0 0 0.00%
share
II. Unrestricted
shares 467965687 40.60% 0 0 0 0 0 467965687 40.60%
1. RMB common
shares 416216407 36.11% 0 0 0 0 0 416216407 36.11%
2. Domestically
listed foreign 51749280 4.49% 0 0 0 0 0 51749280 4.49%
shares
3. Foreign listed
foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 115253525 115253525100.00% 0 0 0 0 0 100.00%
44
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 tocommon 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. Changes in total shares and shareholders structure as well as explanation on changes in assets and
liability structure
□ 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 Total Total preferred Total
common common shareholders with preferred
stock stock voting rights sharehold
shareholder shareholder recovered at the end ers with
s at the end s at the end of reporting period (if voting
of reporting of last applicable) (refer to rights
period month Note 8) recovered
before at end of
annual last
46547 report 46089 0 month 0
disclosed before
annual
report
disclosed
(if
applicabl
e) (refer
to Note
8)
Particulars about shareholders holding more than 5% shares of the company or top ten shareholders
Name of Nature of Proportion Total Changes in Quantity of Quantity of Information of
shares pledgedShareholder shareholder of shares shares held reporting restricted unrestricted tagged or frozen
s held at the end period shares held shares held
State of Quantit
of reporting
share y
period
Shenzhen State-owned 63.79% 73523725 0 66918473 66052518 NA 0
Food legal person 3 5
Materials
Group Co.Ltd
Shenzhen State-owned 8.23% 94832294 0 15384832 79447462 NA 0
Agricultural legal person
Products
Group Co.Ltd
Dongguan Domestic non- 0.75% 8698216 0 0 8698216 NA 0
Fruit state-owned
Vegetable legal person
and Non-
staple Food
Trading
Market Co.Ltd
Lin Junbo Domestic 0.48% 5500000 797200 0 5500000 NA 0
nature person
Hong Kong Foreign legal 0.47% 5453193 772097 0 5453193 NA 0
Securities person
Clearing
Company
Sun Domestic 0.31% 3606652 206690 0 3606652 NA 0
Huiming nature person
Zhong Domestic 0.29% 3295500 0 0 3295500 NA 0
Zhenxin nature person
Chen Domestic 0.25% 2911070 150000 0 2911070 NA 0
Jiuyang nature person
Shen Domestic 0.18% 2044300 2044300 0 2044300 NA 0
Danfeng nature person
Yang Domestic 0.13% 1516900 1516900 0 1516900 NA 0
Xiangzhe nature person
Strategy investors or general
legal person becoming top 10
common shareholders due to N/A
rights issue (if applicable) (see
note 3)
Explanation on associated Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co. Ltd. and
relationship among the holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through
aforesaid shareholders Shenzhen Food Materials Group Co. Ltd.(now renamed into Shenzhen 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 N/A
rights and abstention from
voting rights.Special note on the repurchase
account among the top 10
shareholders (if applicable) N/A
(see note 10)
Particular about top ten shareholders holding unrestricted shares
Shareholders’ name Quantity of unrestricted shares
Type of shares
held at Period-end Type Quantity
Shenzhen Food Materials Group Co. Ltd 79447462 RMB common shares 79447462Shenzhen Agricultural Products Group Co. 66052518 RMB common sharesLtd 66052518
Dongguan Fruit Vegetable and Non- staple
Food Trading Market Co. Ltd 8698216
RMB common shares 8698216
Lin Junbo 5500000 RMB common shares 5500000
Hong Kong Securities Clearing Company 5453193 RMB common shares 5453193
Sun Huiming 3606652 RMB common shares 3606652
Zhong Zhenxin 3295500 Domestically listedforeign shares 3295500
Chen Jiuyang 2911070 RMB common shares 2911070
Shen Danfeng 2044300 RMB common shares 2044300
Yang Xiangzhe 1516900 RMB common shares 1516900
Explanation of the association
or concerted action between Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co. Ltd. and
the top 10 shareholders of non- holds 34% equity of Shenzhen Agricultural Products Group Co. Ltd. indirectly through
restricted and tradable shares Shenzhen Food Materials Group Co. Ltd.(nowt renamed into Shenzhen Agricultural Power
as well as between the top 10 Group Co. Ltd.); The Company was not aware of any related relationship between other
shareholders of non-restricted shareholders above and whether they are parties acting in concert as defined by the Acquisition
and tradable shares and the top Management Method of Listed Company.
10 shareholders
At the end of reporting period Lin Junbo a shareholder of the company held 5500000 shares of
the Company under customer credit trading secured securities account through China Merchants
Securities Co. Ltd. and held 0 shares of the company under common account totally holding
5500000 shares of the Company. During the reporting period shares held by Lin Junbo under
Explanation on the the credit trading secured securities account rose by 2214300 shares shares held by him under
participation of the top 10 common account reduced by 1417100 shares and shares held by Lin Junbo rose by 797200
ordinary shareholders in shares.margin trading and securities At the end of reporting period Shen Danfeng a shareholder of the company held 2044300
lending business (if any) (see shares of the Company under customer credit trading secured securities account through
Note 4) Dongfang Securities Co. Ltd and held 0 shares of the Company under common account totally
holding 2044300 shares of the Company. During the reporting period shares held by Shen
Danfeng under the credit trading secured securities account rose by 2044300 shares shares held
by her under common account kept unchanged and shares held by Shen Danfeng rose by
2044300 shares.
The top ten shareholders participating in the lending of shares through refinancing business
□Applicable□Not applicable
The top ten shareholders have changed compared to the previous period
□Applicable □Not applicable
In share
Changes in the top ten shareholders compared to the end of the previous period
The number of shares held in the ordinary
At the end of the period the number of account and credit account of shareholders
New/existing shares lent through refinancing and not at the end of the period as well as the
Full name of
shareholders in yet repaid shares lent through refinancing that have
shareholders
current period not yet been returned
Proportion in total Proportion in total
Total Total
shares shares
Shen Danfeng New 0 0.00% 2044300 0.18%
Yan Xiangzhe New 0 0.00% 1516900 0.13%
Deng Lijun Existing 0 0.00% 0 0.00%
Sun Limei Existing 0 0.00% 344400 0.03%
Do ten common stock shareholders or top ten common stock shareholders of un-restrict shares have a buy-back agreement dealing in
reporting period
□ Yes □ NoThe top ten common stock shareholders or top ten common stock shareholders of un-restrict shares of the Company have no 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
person/pers
Controlling Date of
on in Organization code Main operation business
shareholders establishment
charge of
the 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 of enterprises in
the future direction); Domestic trade
Shenzhen Agricultural 91440300MA5EWWP (excluding franchised monopolized
Huang Wei Dec. 14 2017
Power Group Co. Ltd. XX2 and exclusively controlled
commodities); engaging in import
and export business (except for items
prohibited by laws administrative
regulations and the State Council
restricted items can only be operated
after obtaining permission); online
business activities (excluding
restricted items). Licensed business
items are food sales and supply
business; emergency material
production and operation; production
purchase and sale of I II and III
medical devices; pharmaceutical
wholesale; ordinary freight
professional transportation
warehousing and logistics.Equity of other
domestic and foreign
listed companies
controlled and In addition to holding 63.79% equity of the company Shenzhen Agricultural Power Group Co. Ltd.participated in by holds 34% equity of Agricultural Products.controlling
shareholders during the
reporting periodChanges of controlling shareholders in reporting period
□ Applicable□Not applicable
The controlling shareholder of the company has not changed during the reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal
person/person Date of Main operation
Actual controller Organization codein charge of the establishment 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
company controlled by actual -
controller in reporting period
Changes of actual controller in reporting period
□ Applicable□Not applicable
No changes of actual controllers for the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
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
Actual controller controlling the Company by entrust or other assets management
□ Applicable□Not applicable
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and its
persons acting in concert accounts for 80% of the shares held by them
□ Applicable□Not applicable5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable□Not applicable
6. Limitation and reducing the holdings of shares of controlling shareholders actual controllers
restructuring party and other commitment subjects
□ Applicable□Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable □ Not applicable
Progress in implementing centralized bidding trading to reduce holdings of repurchase shares
□ Applicable □ Not applicableSection VIII. Preferred Stock
□ 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 2023 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 2024-04-12
Name of audit institute Grant Thornton Certified Public Accountant LLP(SpecialGeneral Partnership)
Document serial of audit report ZHTSH[2024]No.441A010660
Name of the CPA Gao Hong Wang Zhongnian
Text of auditing report
Auditor’s Report
ZHTSH[2024]No.441A010660
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 2023 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 2023 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(37) and Note VII (43) of financial statements.
1. Matter description
91深圳市深粮控股股份有限公司2023年度报告全文
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 2023 is
6190005400.00 yuan and it is one of the key index of performance of SZCH which has a 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:
Understand evaluate and test the design and operational effectiveness of internal control related to revenue;
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;
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;
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;
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;
Sample to confirm the current sales revenue and the initial and final balances of accounts receivable and payable to major customers
new customers etc.;
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 (17) and Note VII (10) of consolidated
financial statements.
1. Matter description
As of December 31 2023 the book value of inventory presented on the consolidated financial statements of SZCH was
3567711400.00 yuan and the loss allowance of inventories was 109267400.00 yuan the carrying amount of inventories was
3458444000.00 yuan accounting for 47.01% 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:
Understand evaluate and test the design and operational effectiveness of internal control related to inventory;
92深圳市深粮控股股份有限公司2023年度报告全文
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;
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.Implement monitoring procedure for inventory check its quantity and condition and implement alternative procedures for
fumigation warehouses;
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 onduct 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
For relevant information please refer to Note V(37) and Note VII (61) of financial statements.The management of SZCH (hereinafter referred to as the management) is responsible for other information which includes the
information covered in the Company’s 2023 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 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
93深圳市深粮控股股份有限公司2023年度报告全文
the audit. We also:
(i) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a 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.(ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.(iv) 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.(v) 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.(vi) 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)
Chinese CPA Wang Zhongnian
Beijing China 日 April 12 2024
94深圳市深粮控股股份有限公司2023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.December 31 2023
In RMB
Item Dec. 31 2023 Jan. 1 2023
Current assets:
Monetary funds 236384606.60 54103771.00
Settlement provisions
Capital lent
Tradable financial assets 1122347.85 46676652.91
Derivative financial assets
Note receivable 113932.00 270109.00
Account receivable 179828493.98 236829100.95
Receivable financing
Accounts paid in advance 17234701.92 65487390.88
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 29127689.89 32910189.14
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 3458443989.04 3599041970.52
Contract assets
Assets held for sale 121126137.62
Non-current asset due within one
year
Other current assets 105857923.48 32597421.26
Total current assets 4149239822.38 4067916605.66
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 74008926.48 70676534.63
Investment in other equity
instrument
Other non-current financial assets 57500.00 57500.00
Investment real estate 263597031.89 217137461.76
Fixed assets 2171969725.22 2141336538.86
Construction in progress 51288301.16 186884912.13
Productive biological asset 358617.00 368309.40
Oil and gas asset
Right-of-use assets 56933148.16 78304838.28
Intangible assets 546325555.22 594428051.55
Expense on Research and
Development
95深圳市深粮控股股份有限公司2023年度报告全文
Goodwill 1953790.56
Long-term expenses to be
apportioned 24694318.05 33076249.90
Deferred income tax asset 52757295.38 40395164.00
Other non-current asset 7297950.00 8953415.90
Total non-current asset 3249288368.56 3373572766.97
Total assets 7398528190.94 7441489372.63
Current liabilities:
Short-term loans 1223462519.16 1192211087.37
Loan from central bank
Capital borrowed
Trading financial liability 288486.18
Derivative financial liability
Note payable
Account payable 336165196.80 390149018.13
Accounts received in advance 1084701.60 1355802.01
Contract liability 86566253.73 110177908.96
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 266214663.20 339234506.43
Taxes payable 86906785.70 70739384.81
Other account payable 277687590.83 299793948.48
Including: Interest payable
Dividend payable 2933690.04 2933690.04
Commission charge and
commission payable
Reinsurance payable
Liability held for sale 66579828.59
Non-current liabilities due within
one year 22805473.76 21770690.45
Other current liabilities 3896140.56 1112119.07
Total current liabilities 2371369153.93 2426832951.89
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 37744951.74 60436879.66
Long-term account payable 17994633.05 17620572.48
Long-term wages payable
Accrual liability 3500000.00
Deferred income 82819873.24 87077137.27
Deferred income tax liabilities 10937920.46 13388049.53
Other non-current liabilities
Total non-current liabilities 149497378.49 182022638.94
Total liabilities 2520866532.42 2608855590.83
Owner’s equity:
Share capital 1152535254.00 1152535254.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
96深圳市深粮控股股份有限公司2023年度报告全文
Capital public reserve 1260757114.42 1259639656.65
Less: Inventory shares
Other comprehensive income
Reasonable reserve 741968.19 220301.70
Surplus public reserve 483103366.38 439624164.67
Provision of general risk
Retained profit 1927314400.85 1911102682.38
Total owner’ s equity attributable to
parent company 4824452103.84 4763122059.40
Minority interests 53209554.68 69511722.40
Total owner’ s equity 4877661658.52 4832633781.80
Total liabilities and owner’ s equity 7398528190.94 7441489372.63
Legal Representative: Wang Zhikai Person in charge of accounting works: Lu Yuhe
Person in charge of accounting institute: Wen Jieyu
2. Balance Sheet of Parent Company
In RMB
Item Dec. 31 2023 Jan. 1 2023
Current assets:
Monetary funds 149617836.08 961310.17
Tradable financial assets 1122347.85 46676652.91
Derivative financial assets
Note receivable
Account receivable 65714555.94 87194178.84
Receivable financing
Accounts paid in advance 336007.79 687515.40
Other account receivable 1624337855.63 1560888393.94
Including: Interest receivable
Dividend receivable
Inventories
Contract assets
Assets held for sale 21675000.00
Non-current assets maturing
within one year
Other current assets 55135837.73 274196.00
Total current assets 1917939441.02 1696682247.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 4026844425.09 4033819425.09
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 15571733.20 16043323.48
Fixed assets 32858541.01 33752718.66
Construction in progress
Productive biological assets 358617.00 368309.40
Oil and natural gas assets
Right-of-use assets
Intangible assets 23006791.89 17032428.19
Research and development costs
Goodwill
Long-term deferred expenses 2291236.03 3097280.23
97深圳市深粮控股股份有限公司2023年度报告全文
Deferred income tax assets 10260054.61
Other non-current assets 3744657.76 8700512.47
Total non-current assets 4114936056.59 4112813997.52
Total assets 6032875497.61 5809496244.78
Current liabilities:
Short-term borrowings 100073055.56
Trading financial liability
Derivative financial liability
Notes payable
Account payable
Accounts received in advance
Contract liability
Wage payable 31524389.29 27465081.26
Taxes payable 2801152.52 2993808.49
Other accounts payable 1200576358.07 1024148905.29
Including: Interest payable
Dividend payable 2933690.04 2933690.04
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 1234901899.88 1154680850.60
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee
compensation payable
Accrued liabilities 3500000.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3500000.00
Total liabilities 1234901899.88 1158180850.60
Owners’ equity:
Share capital 1152535254.00 1152535254.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 3018106568.27 3018106568.27
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 210698938.24 167219736.53
Retained profit 416632837.22 313453835.38
Total owner’s equity 4797973597.73 4651315394.18
Total liabilities and owner’s equity 6032875497.61 5809496244.78
3. Consolidated Profit Statement
In RMB
98深圳市深粮控股股份有限公司2023年度报告全文
Item 2023 2022
I. Total operating income 6190005356.82 8312723058.19
Including: Operating income 6190005356.82 8312723058.19
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 5697273735.73 7717019269.26
Including: Operating cost 5228845801.34 7172858434.85
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 18910438.82 17936476.00
Sales expense 176429835.98 175760616.70
Administrative expense 212979557.64 280557640.12
R&D expense 20045364.68 18549053.04
Financial expense 40062737.27 51357048.55
Including: Interest
expenses 39968255.33 52421870.87
Interest income 959189.54 895316.44
Add: Other income 22969158.29 9839784.37
Investment income (Loss is
listed with “-”) 9954884.45 2229228.54
Including: Investment income
on affiliated company and joint venture 3332391.85 -2813908.86
The termination of
income recognition for financial assets
measured by amortized cost
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”) 182701.67 18546.91
Loss of credit impairment
(Loss is listed with “-”) -3172372.15 -1356843.59
Losses of devaluation of asset
(Loss is listed with “-”) -104336237.13 -142507365.87
Income from assets disposal
(Loss is listed with “-”) 2394378.42 -25417.69
III. Operating profit (Loss is listed with
“-”)420724134.64463901721.60
Add: Non-operating income 2445728.23 7995011.97
Less: Non-operating expense 1800973.49 985871.48
IV. Total profit (Loss is listed with “-”) 421368889.38 470910862.09
Less: Income tax expense 74736397.57 52442194.11
V. Net profit (Net loss is listed with “-”) 346632491.81 418468667.98
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”) 346632491.81 418468667.98
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
99深圳市深粮控股股份有限公司2023年度报告全文
1.Net profit attributable to owner’s
of parent company 347824733.68 420764671.03
2.Minority shareholders’ gains and
losses -1192241.87 -2296003.05
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 346632491.81 418468667.98
Total comprehensive income
attributable to owners of parent 347824733.68 420764671.03
Company
Total comprehensive income
attributable to minority shareholders -1192241.87 -2296003.05
VIII. Earnings per share:
(i) Basic earnings per share 0.3018 0.3649
(ii) Diluted earnings per share 0.3018 0.3649
As for the enterprise combined under the same control the net profit achieved by the merged party before combination is 0.00
yuan and the net profit achieved by the merged party in last period is 0.00 yuan.Legal Representative: Wang Zhikai
Person in charge of accounting works: Lu Yuhe
Person in charge of accounting institute: Huang Xidi
100深圳市深粮控股股份有限公司2023年度报告全文
4. Profit Statement of Parent Company
In RMB
Item 2023 2022
I. Operating income 156547962.65 204080212.91
Less: Operating cost 471590.28 471590.28
Taxes and surcharge 461125.55 428343.35
Sales expenses 0.00 0.00
Administration expenses 69872687.40 67070054.50
R&D expenses
Financial expenses -31215787.32 -8044509.56
Including: Interest
expenses 1340647.66 1827115.61
Interest income 32809723.32 9779382.27
Add: Other income 382620.07 308389.79
Investment income (Loss is
listed with “-”) 307281666.79 195712249.48
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”) -105784.51 307033.09
Loss of credit impairment
(Loss is listed with “-”) 11212.35 -664.43
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
“-”)424528061.44340481742.27
Add: Non-operating income 5000.02 5000.23
Less: Non-operating expense 1099.02
III. Total Profit (Loss is listed with “-”) 424531962.44 340486742.50
Less: Income tax -10260054.61IV. Net profit (Net loss is listed with “-”)434792017.05340486742.50
(i) continuous operating net profit(net loss listed with ‘-”) 434792017.05 340486742.50
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(i) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
101深圳市深粮控股股份有限公司2023年度报告全文
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 434792017.05 340486742.50
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2023 2022
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 6417740069.92 8510329807.95
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 3183211.56 84485893.36
Other cash received concerning
operating activities 284184297.42 400125909.72
Subtotal of cash inflow arising from
operating activities 6705107578.90 8994941611.03
Cash paid for purchasing
commodities and receiving labor 5308048692.21 7446476870.32
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
102深圳市深粮控股股份有限公司2023年度报告全文
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 375960027.05 342665847.76
Taxes paid 138212589.39 153858115.96
Other cash paid concerning
operating activities 297069614.06 520052010.35
Subtotal of cash outflow arising from
operating activities 6119290922.71 8463052844.39
Net cash flows arising from operating
activities 585816656.19 531888766.64
II. Cash flows arising from investing
activities:
Cash received from recovering
investment 1558000000.00 1281460000.00
Cash received from investment
income 6844163.83 8146592.88
Net cash received from disposal of
fixed intangible and other long-term 6881320.00 276799.46
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities 726511.34 0.00
Subtotal of cash inflow from investing
activities 1575902755.32 1289883392.34
Cash paid for purchasing fixed
intangible and other long-term assets 147621094.50 198201398.37
Cash paid for investment 1543000000.00 1106460000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities 0.00 404.68
Subtotal of cash outflow from investing
activities 1690621094.50 1304661803.05
Net cash flows arising from investing
activities -114718339.18 -14778410.71
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment 490000.00 4900000.00
Including: Cash received from
absorbing minority shareholders’ 490000.00 4900000.00
investment by subsidiaries
Cash received from loans 1930787809.13 3638944014.55
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities 1931277809.13 3643844014.55
Cash paid for settling debts 1867334898.93 3790121597.82
Cash paid for dividend and profit
distributing or interest paying 324657445.10 342789753.61
Including: Dividend and profit of
minority shareholder paid by 0.00 676800.00
subsidiaries
Other cash paid concerning
financing activities 34531394.28 24485154.67
Subtotal of cash outflow from financing
activities 2226523738.31 4157396506.10
Net cash flows arising from financing
activities -295245929.18 -513552491.55
103深圳市深粮控股股份有限公司2023年度报告全文
IV. Influence on cash and cash
equivalents due to fluctuation in 3441629.33 167524.68
exchange rate
V. Net increase of cash and cash
equivalents 179294017.16 3725389.06
Add: Balance of cash and cash
equivalents at the period -begin 53095469.26 49370080.20
VI. Balance of cash and cash
equivalents at the period -end 232389486.42 53095469.26
6. Cash Flow Statement of Parent Company
In RMB
Item 2023 2022
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 729054189.00 176686787.63
Write-back of tax received 0.00 1708938.65
Other cash received concerning operating activities 2005313299.07 3680998303.08
Subtotal of cash inflow arising from operating activities 2734367488.07 3859394029.36
Cash paid for purchasing commodities and receiving labor service 0.00 0.00
Cash paid to/for staff and workers 49590320.93 57765938.12
Taxes paid 31145617.56 446493.37
Other cash paid concerning operating activities 2100148518.90 2660155177.37
Subtotal of cash outflow arising from operating activities 2180884457.39 2718367608.86
Net cash flows arising from operating activities 553483030.68 1141026420.50
II. Cash flows arising from investing activities:
Cash received from recovering investment 658000000.00 718000000.00
Cash received from investment income 3654709.03 4590419.34
Net cash received from disposal of fixed intangible and other long-term assets 0.00 0.00
Net cash received from disposal of subsidiaries and other units 6881320.00 0.00
Other cash received concerning investing activities 16592433.35 4000000.00
Subtotal of cash inflow from investing activities 685128462.38 726590419.34
Cash paid for purchasing fixed intangible and other long-term assets 10063850.16 9341668.55
Cash paid for investment 643000000.00 583000000.00
Net cash received from subsidiaries and other units obtained 0.00
Other cash paid concerning investing activities 47100000.00 1053688033.44
Subtotal of cash outflow from investing activities 700163850.16 1646029701.99
Net cash flows arising from investing activities -15035387.78 -919439282.65
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 5000000.00 442127475.10
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 5000000.00 442127475.10
Cash paid for settling debts 105000000.00 370299684.12
Cash paid for dividend and profit distributing or interest paying 289793581.08 294731370.17
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 394793581.08 665031054.29
Net cash flows arising from financing activities -389793581.08 -222903579.19
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate 2464.09 13362.62
V. Net increase of cash and cash equivalents 148656525.91 -1303078.72
Add: Balance of cash and cash equivalents at the period -begin 961310.17 2264388.89
VI. Balance of cash and cash equivalents at the period -end 149617836.08 961310.17
7. Consolidated Statement of Changes in Owners’ Equity
Current period
104深圳市深粮控股股份有限公司2023年度报告全文
In RMB
2023
Owners’ equity attributable to the parent Company
Other Othe
equity instrument
Shar Capi Less:
r Reas Provcom Surp ision Retai Min Total
Item e Perp tal Inve preh onab lus of ned Othe Subt ority own
capit Prefe etual reser
ntory ensiv le reser gene profi r otal inter ers’
al capit Othe ve share e reserrred s ve ve ral t ests
equit
y
stock al r inco risksecur me
ities
115125439191476695483
I. Balance at the 220253 963 624 095 297 117 248
end of the last 301.year 525 965 164. 408 346 22.4 51870
4.006.65674.791.8104.21
Add: Changes of 148 148 148
accounting 597. 597. 597.policy 59 59 59
Error correction
of the last period
Other
115125439191476695483
II. Balance at the 220253 963 624 110 312 117 263
beginning of this 301.year 525 965 164. 268 205 22.4 37870
4.006.65672.389.4001.80
-
III. Increase/ 434 162 613 450111 521 163
Decrease in this 792 117 300 278
year (Decrease is 0.00 745 666. 02101.7 18.4 44.4 76.7
listed with “-”) 7.77 49 67.7
1742
2
(i) Total 824 824 119 632
comprehensive 0.00 0.00 0.00 0.00
income 733. 733. 224 491.
68681.8781
--
(ii) Owners’ 111 111 151 139
devoted and 0.00 745 0.00 0.00 0.00 745 099 924
decreased capital 7.77 7.77 25.8 68.0
58
1.Common 490 490
shares invested 0.00 0.00 0.00 0.00 0.00 000. 000.by shareholders 00 00
2.Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00
with share-based
payment
--
111111155144
4. Other 0.00 745 0.00 0.00 0.00 745 999 824
7.777.7725.868.0
58
434---
(III) Profit
distribution 0.00 0.00 0.00 792 331 288 288
01.7613133133
105深圳市深粮控股股份有限公司2023年度报告全文
1015.813.813.
215050
-
434
434
1. Withdrawal of 792
surplus reserves 0.00 0.00 0.00 792 0.0001.7
01.7
1
1
2. Withdrawal of
general risk
provisions
---
3. Distribution 288 288 288
for owners (or 0.00 0.00 0.00 0.00 133 133 133
shareholders) 813. 813. 813.
505050
4. Other 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Carrying
forward internal 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4.Carry-over
retained earnings
from the defined
benefit plans
5.Carry-over
retained earnings
from other
comprehensive
income
6. Other
521521521
(V) Reasonable
reserve 0.00 0.00 666. 0.00 0.00 666. 0.00 666.
494949
198198198
1. Withdrawal in
the report period 0.00 0.00 152 0.00 0.00 152 0.00 152
0.980.980.98
---
2. Usage in the 145 145 145
report period 0.00 0.00 0.00 0.00 0.00985 985 985
4.494.494.49
(VI)Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
115126483192482532487
IV. Balance at 741253 075 103 731 445 095 766
the end of the 968.report period 525 711 366. 440 210 54.6 16519
4.004.42380.853.8488.52
106深圳市深粮控股股份有限公司2023年度报告全文
Last period
In RMB
2022
Owners’ equity attributable to the parent Company
Other Other
Share equity instrument Capit Less: compr Reaso Surpl Provis Retai Minor TotalItem capita Perpet al Invent ehensi nable us ion of Subto ity owner
l
Prefer ual reserv ory ve reserv reserv gener
ned Other
capita e shares incom e e al risk profit
tal intere s’
red Other sts equity
stock l esecuri
ties
I. Balance at the 1152 1259 4055 1812 4630 6661 4696
end of the last 5352 6396 0.00 7549 5417 2921 4164. 9062
year 54.00 56.65 0.42 01.27 02.34 37 66.71
Add: Changes of - - -
accounting 2120 2120 2120
policy 2.17 2.17 2.17
Error correction
of the last period
Other
II. Balance at the 1152 1259 4055 1812 4630 6661 4696
beginning of this 5352 6396 0.00 7549 5204 2709 4164. 8850
year 54.00 56.65 0.42 99.10 00.17 37 64.54
III. Increase/ 3404 9858 1328 2897 1357
Decrease in this 2203
year (Decrease is 0.00 0.00 8674. 2183. 5115 558.0 487101.70
listed with “-”) 25 28 9.23 3 7.26
-
(i) Total 4207 4207 41842296
comprehensive 0.00 0.00 0.00 0.00 6467 6467 6866
income 003.01.03 1.03 7.98
5
(ii) Owners’ 4900 4900
devoted and 0.00 0.00 0.00 0.00 0.00 000.0 000.0
decreased capital 0 0
1.Common 4900 4900
shares invested 0.00 0.00 0.00 0.00 0.00 000.0 000.0
by shareholders 0 0
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00
with share-based
payment
4. Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----
3404
(III) Profit 3221 2881 1119 2892
distribution 0.00 0.00 0.00 8674. 8248 3381 617.1 5343
25
7.753.5050.65
-
3404
1. Withdrawal of 3404
surplus reserves 0.00 0.00 0.00 8674. 0.00 0.008674.
25
25
2. Withdrawal of
general risk
provisions
3. Distribution - - - -
for owners (or 0.00 0.00 0.00 0.00 2881 2881 1119 2892
shareholders) 3381 3381 617.1 5343
107深圳市深粮控股股份有限公司2023年度报告全文
3.503.5050.65
4. Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Carrying
forward internal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4.Carry-over
retained earnings
from the defined
benefit plans
5.Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable 2203 2203 2203
reserve 0.00 0.00 0.00 0.00 0.0001.70 01.70 01.70
174817481748
1. Withdrawal in
the report period 0.00 0.00 440.1 0.00 0.00 440.1 0.00 440.1
444
---
2. Usage in the 1528 1528 1528
report period 0.00 0.00 0.00 0.00 0.00138.4 138.4 138.4
444
14131413
(VI)Others 0.00 0.00 0.00 0.00 0.00 178.2 178.2
33
IV. Balance at 1152 1259 4396 1911 4763 6951 48322203
the end of the 5352 6396 2416 1026 1220 1722. 6337
report period 01.7054.00 56.65 4.67 82.38 59.40 40 81.80
8.Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2023
Share Other equity instrument
Item capital Perpet
Less: Other Reason
Prefer ual Capital Invent comprehe able Surplus Retained Oth Total owners’
red capital Oth reserve ory nsive reserve profit er equity
stock securit er shares income
reserve
ies
I. Balance
at the end 11525352 30181065 1672197 3134538
of the last 4651315394.1854.00 68.27 36.53 35.38
year
Add:
Changes
of
accountin
g policy
Error
108深圳市深粮控股股份有限公司2023年度报告全文
correction
of the last
period
Other
II.Balance at
the 11525352 30181065 1672197 3134538
beginning 4651315394.1854.00 68.27 36.53 35.38
of this
year
III.Increase/
Decrease
in this 4347920 1031790
year 0.00 0.00 146658203.551.71 01.84
(Decrease
is listed
with “-”)
(i) Total
comprehe 4347920
nsive 0.00 0.00 0.00 434792017.0517.05
income
(ii)
Owners’
devoted
and
decreased
capital
1.Commo
n shares
invested
by
sharehold
ers
2. Capital
invested
by holders
of other
equity
instrument
s
3. Amount
reckoned
into
owners
equity
with
share-
based
payment
4. Other
(III) Profit -4347920
distributio 0.00 0.00 3316130 -288133813.50
n 1.71 15.21
1.
Withdraw -4347920
al of 0.00 0.00 4347920 0.00
surplus 1.71
reserves 1.71
2.
Distributi
on for -
owners 0.00 0.00 0.00 2881338 -288133813.50
(or
sharehold 13.50
ers)
3. Other 0.00 0.00 0.00 0.00 0.00
(IV)
Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed
to capital
(share
109深圳市深粮控股股份有限公司2023年度报告全文
capital)
2. Surplus
reserves
conversed
to capital
(share
capital)
3.
Remedyin
g loss
with
surplus
reserve
4.Carry-
over
retained
earnings
from the
defined
benefit
plans
5.Carry-
over
retained
earnings
from other
comprehe
nsive
income
6. Other
(V)
Reasonabl
e reserve
1.
Withdraw
al in the
report
period
2. Usage
in the
report
period
(VI)Other
s
IV.Balance at 11525352 30181065 2106989 4166328
the end of 4797973597.73
the report 54.00 68.27 38.24 37.22
period
Last period
In RMB
2022
Other equity instrument
Share Less: OtherItem capital Perpetua Capital compreh Reasona Surplus Retaine Total
Preferre l capital reserve Inventor ensive ble reserve d profit Other owners’
d stock securitie Other y shares income reserve equity
s
I. Balance at 115253 301810 133171 295149 45989624
the end of the
last year 5254.00 6568.27 062.28 580.63 65.18
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at 115253 301810 133171 295149 45989624
the beginning
of this year 5254.00 6568.27 062.28 580.63 65.18
III. Increase/
Decrease in 340486 183042 52352929.this year 0.00 0.00
(Decrease is 74.25 54.75 00
listed with “-”)
110深圳市深粮控股股份有限公司2023年度报告全文
(i) Total 340486 34048674
comprehensive 0.00 0.00 0.00
income 742.50 2.50
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-
based payment
4. Other
--
(III) Profit 340486
distribution 0.00 0.00 322182 2881338174.25
487.753.50
1. Withdrawal -340486
of surplus 0.00 0.00 340486 0.00
reserves 74.25 74.25
2. Distribution - -
for owners (or 0.00 0.00 0.00 288133 28813381
shareholders) 813.50 3.50
3. Other 0.00 0.00 0.00 0.00 0.00
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4.Carry-over
retained
earnings from
the defined
benefit plans
5.Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 115253 301810 167219 313453 46513153
the end of the
report period 5254.00 6568.27 736.53 835.38 94.18
111深圳市深粮控股股份有限公司2023年度报告全文
III. Basic information of Company
1. Company profile
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 the 7th meeting of the 11th session of BOD of the
company on April 12 2024.
2. Consolidation scope of financial statement
For more details of change of the consolidation scope in the Period please refer to “Note VIII. Change of consolidation scope”
For more details of subsidiaries of the company please refer to “Note IX. Equity in other entities”
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.
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V. Major accounting policy and accounting estimate
Specific accounting policies and accounting estimate tips:
Our 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 V.24 Note V. 29 and Note V 5. 37.
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 2023 as well as the consolidate and parent company’s operational results and cash flow for year of 2023.
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.
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 ≥ 1000000
Other accounts receivable with significant single provision for bad debt reserves Amount ≥ 5000000
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
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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
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
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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
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.
(5) Step by step disposal of equity until loss of control
If the terms conditions and economic impact of various transactions that involve the step-by-step disposal of equity through
multiple transactions until the loss of control meet one or more of the following conditions the Company will treat the multiple
transactions as a package transaction for accounting treatment:
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* These transactions were entered into simultaneously or considering mutual influence;
* These transactions as a whole can achieve a complete commercial outcome;
* The occurrence of a transaction depends on the occurrence of at least one other transaction;
* A single transaction may not be economical when viewed separately but it is economical when considered together with other
transactions.In the consolidated financial statements in case of step-by-step disposal of equity until loss of control the remaining equity and the
accounting of gains and losses related to the disposal of equity shall be measured by reference to the accounting treatment for the loss
of control of a subsidiary as described above. Before losing control the difference between the disposal price and the book value of
net asset of the subsidiary corresponding to the disposal investment that has been continuously calculated since the purchase date
shall be treated as follows:
* If it is package deal it is recognized as other comprehensive income and transferred to the gains and losses of the period when
losing control.* If it is not package deal it shall be booked into capital reserve (share premium) as equity transaction and shall not be transferred
to the gains and losses of the period when losing control.
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
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.
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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
Our company conducts foreign currency transactions and converts them into the accounting base currency amount at the spot
exchange rate on the transaction date.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.
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.
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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:
* 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.
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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.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.Financial assets are measured at fair value at 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 by the company as expected amount of consideration for the initial recognition amount.
(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 are exchanged for a fixed amount of cash or other
financial assets.
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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
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 Notes 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;
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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.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 receivables. 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 and accounts receivable
For notes receivable and accounts receivable regardless of whether there are significant financing components the company always
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measures its loss provision at an amount equivalent to the expected credit loss for the entire duration.When it is unable to asses 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 Basis for determining
portfolio portfolio Methods for measuring expected credit losses
Based on historical credit loss experience combined with current conditions and
Bank acceptance bill Bill type predictions of future economic conditions calculate the expected credit loss by
default risk exposure and the expected credit loss rate for the entire duration
Commercial Based on historical credit loss experience combined with current conditions and
acceptance bill Bill type predictions of future economic conditions the expected credit loss is calculated bydefault risk exposure and the expected credit loss rate for the entire duration
B. Accounts receivable
Accounts receivable portfolio Basis for determiningportfolio Methods for measuring expected credit losses
Based on historical credit loss experience combined with current
conditions and predictions of future economic conditions prepare a
Sales receivables portfolio Aging analysis comparison table between the aging of accounts receivable and the
expected credit loss rate for the entire duration and calculate the
expected credit loss
Accounts receivable between Based on historical credit loss experience combined with current
related parties within the conditions and predictions of future economic conditions calculate
Specific object portfolio scope of consolidation and the expected credit loss by default risk exposure and the expected
accounts receivable from credit loss rate for the entire duration. The expected credit loss rate
government departments for the portfolio is 0
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 and the method for measuring expected credit losses as follows:
Other accounts receivable Basis for determining Methods for measuring expected credit losses
portfolio portfolio
Expected portfolio of credit Aging analysis Based on historical credit loss experience calculate the expected
risk characteristics credit loss by default risk exposure and the expected credit loss rate
over the next 12 months or the entire duration
Specific object portfolio Accounts receivable margin Based on historical credit loss experience calculate the expected
deposit and accounts credit loss by default risk exposure and the expected credit loss rate
receivable from government for the next 12 months or the entire duration. The expected credit
departments between related loss rate for this combination is 0
parties within the scope of
consolidation
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 counterparty and risk exposure default risk exposure and expected credit loss rate for the next 12 months or the
entire duration.
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Aging of the aging portfolio and the expected credit loss rate for the entire duration
Aging Accrual ratio %
Within 1 year (including 1 year) 1.00
1-2 years (including 2 years) 10.00
2-3 years (including 3 years) 30.00
3-5 years (including 5 years) 50.00
Over 5 years 80.00
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.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;
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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 write 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 our 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.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.
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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
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;
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18.Asset held for sale
19.Debt investment
20.Other equity 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
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.
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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
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
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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) 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.
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.
23.
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.
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(2)Depreciation method
Category Method Years of depreciation Scrap value rate Yearly depreciation rate
House and buildings
Production buildings Straight-linedepreciation 20-35 5 2.71-4.75
Non-production Straight-line
buildings depreciation 20-40 5 2.38-4.75
Temporary dormitory Straight-line
and simple room etc. depreciation 5-15 5 6.33-19.00
Gas storage bin Straight-linedepreciation 20 5 4.75
Silo Straight-linedepreciation 50 5 1.9
Wharf and supporting Straight-line
facilities depreciation 50 5 1.9
Machinery equipment Straight-linedepreciation
Other machinery Straight-line
equipment depreciation 10-20 5 4.75-9.50
Warehouse Straight-line
transmission equipment depreciation 20 5 4.75
Transport equipment Straight-linedepreciation 3-10 5 9.50-31.67
Electronic equipment Straight-line
and others depreciation 2-10 5 9.50-47.50
Among them for fixed assets with provision for impairment the cumulative amount of provision for impairment of fixed assets
should also be deducted to determine the depreciation rate.
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 and depreciation is accrued starting
from the following month.The method for impairment of assets for construction in progress can be found in Note III.23 of the auditor’s report.
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;
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* 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
already begun.
(2) Classification of biological assets
Biological assets include consumable biological assets productive biological assets and public welfare biological assets. The
biological assets of the company are productive biological assets.* Consumable biological assets
Consumable biological assets refer to biological assets held for sale or harvested in the future as agricultural products. Consumable
biological assets are initially measured at cost. The cost of self cultivation cultivation reproduction or breeding of consumable
biological assets refers to the necessary expenses that can be directly attributed to the asset before canopy closure including
borrowing costs that meet capitalization conditions. The subsequent expenses incurred by consumptive biological assets after closure
130深圳市深粮控股股份有限公司2023年度报告全文
are recognized in gains and losses in current period.* 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 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:
Category of productive biological assets Useful life (years) Residual value rate % Annual depreciation rate %
Tea 45 0.00 2.22
Our 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.* Public welfare biological assets
Public welfare biological assets refer to biological assets primarily aimed at protection and environmental protection. Public welfare
biological assets are initially measured at cost. The cost of self created public welfare biological assets refers to the necessary
expenses that can be directly attributed to the asset before closing including borrowing costs that meet capitalization conditions. The
subsequent expenses incurred by public welfare biological assets after closing are recognized in gains and losses in current period.Public welfare biological assets are subsequently measured at cost. Public welfare biological assets are not subject to provision for
asset impairment.The difference between the disposal income from the sale inventory loss death or damage of public welfare biological assets after
deducting their book value and relevant 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 provision for impairment 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 provision for impairment 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. 23 of the auditor’s report.No provision for impairment is made for public welfare biological assets.
131深圳市深粮控股股份有限公司2023年度报告全文
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
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 land use right Straight-line
certificate of land use right obtained method
Forest tree use right Service life arranged Protocol agreement Straight-line
method
Trademark use 10 years Actual situation of the Company Straight-line
right 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 Company Straight-line
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.23 of the auditor’s report.
(2) The collection scope and related accounting treatment methods of R&D expenditure
1. General principles
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.Research stage: The stage of creative and planned investigation and research activities aimed at acquiring and understanding new
132深圳市深粮控股股份有限公司2023年度报告全文
scientific or technological knowledge. Development stage: The stage in which research results or other knowledge are applied to a
plan or design to produce new or substantially improved materials devices products and other activities before commercial
production or use.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.
2. Capitalization conditions for specific R&D projects
After the R&D progress meets the following three conditions the project begins to be capitalized: * Technically feasible
theoretically relatively mature preliminary process complete and can be transferred to the actual production stage to further optimize
and improve the process; * The technical achievements of project research and development are feasible and can be applied to the
production or improvement of similar products; * The project technology has the value and possibility of applying for invention
patents and can also be used as proprietary technology of the company.
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.
133深圳市深粮控股股份有限公司2023年度报告全文
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
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:
134深圳市深粮控股股份有限公司2023年度报告全文
* 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.
(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.
135深圳市深粮控股股份有限公司2023年度报告全文
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.* 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
our 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
136深圳市深粮控股股份有限公司2023年度报告全文
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
* Revenue from sales of goods: The revenue 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.* Income from providing labor services: The company provides dynamic grain and oil reserves and rotation services to the
Shenzhen Municipal Government and recognizes 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.* Other income: The amount of usage fee income shall be calculated and determined in accordance with the charging time and
method stipulated in the relevant contract or agreement; For income from leasing of real estate dock warehouses and other
properties as well as the revenue from dock docking business the property rent revenue and warehousing and logistics revenue shall
be calculated 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.
137深圳市深粮控股股份有限公司2023年度报告全文
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 our 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.
39. Government grant
Government grant is recognized when they meet the conditions attached to government grants and can be received. Based on the
essence of economic transactions the company determines whether a certain type of government grant business should be measured
with the total amount method or the net amount method. Normally the company only uses one method for the same or similar
government subsidy businesses and consistently applies this method for that business.Item Accounting content
Government grant measured with total amount method All government grant businesses
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.The policy preferential loans and interest subsidies obtained by the company will be disposed separately based on the following two
situations:
138深圳市深粮控股股份有限公司2023年度报告全文
* The finance department allocates interest subsidy to the lending bank and the lending bank provides loans to the company at a
policy preferential interest rate: 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.* 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:
(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.
139深圳市深粮控股股份有限公司2023年度报告全文
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 3. 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
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 our company chooses to adopt the simplified treatment method mentioned above based on the specific
situation of each lease.Lease change
140深圳市深粮控股股份有限公司2023年度报告全文
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.
(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. Our
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 our 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;
141深圳市深粮控股股份有限公司2023年度报告全文
* 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.
42. Other important accounting policy and estimation
43.Changes of important accounting policy and estimation
(1)Changes of important accounting policies
□Applicable □Not applicable
In RMB
Contents and reasons of accounting Name of items of financial statements
Impact amount
policy subject to major impact
The Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for Enterprises (CK[2022]No. 31) in November
2022 (hereinafter referred to as “Interpretation No. 16”).
Interpretation No. 16 stipulates that for a single transaction that is not a business merger does not affect accounting profits or
taxable income (or deductible losses) at the time of transaction and results in equal taxable temporary differences and deductible
temporary differences due to the initial recognition of assets and liabilities the corresponding deferred income tax liabilities and
deferred income tax assets shall be recognized separately at the time of transaction in accordance with relevant provisions such as
Enterprise Accounting Standard No. 18- Income Tax. For the above-mentioned transactions that occurred between the beginning
of the earliest period for the first implementation of the above regulations in financial statement presentation and the date of
implementation of this interpretation the enterprise shall adjust the cumulative impact to the beginning retained earnings and other
related financial statement items in the earliest period for financial statement presentation in accordance with the above regulations.The above accounting treatment regulations will be implemented from January 1 2023.
(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
Explanation on adjustment
Starting from January 1 2023 the company implemented the Accounting Standards for Enterprises Interpretation No. 16 issued by
the Ministry of Finance which stipulates that deferred income tax related to assets and liabilities arising from individual transactions
shall not be subject to initial recognition exemption accounting treatment. For individual transactions that occur between the
142深圳市深粮控股股份有限公司2023年度报告全文
beginning of the earliest period in which the provision is first implemented and the first implementation date in financial statements
adjustments shall be made according to this provision. For lease liabilities and right-of-use assets recognized at the beginning of the
earliest period in which the provision is first implemented as well as estimated liabilities and corresponding assets related to
abandonment obligations recognized resulting in taxable temporary differences and deductible temporary differences the cumulative
impact amount shall be adjusted to the initial retained earnings and other related financial statement items of the earliest period in
accordance with this provision and the provisions of Enterprise Accounting Standard No. 18- Income Tax. The specific adjustments
are as follows:
The impact of implementing the above accounting policies on the consolidated balance sheet as of December 31 2022 and the
consolidated income statement for the year 2022 is as follows:
Items of consolidated balance sheet
(Dec. 31 2022) Before adjustment Adjustment amount After adjustment
Deferred tax assets 40240466.35 154697.65 40395164.00
Deferred tax liabilities 13381949.47 6100.06 13388049.53
Undistributed profit 1910954084.79 148597.59 1911102682.38
Con’：
Items of consolidated profit statement
(2022) Before adjustment Adjustment amount After adjustment
Income tax expense 52611993.87 -169799.76 52442194.11
Net profit 418298868.22 169799.76 418468667.98
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:
143深圳市深粮控股股份有限公司2023年度报告全文
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”)
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”)
Shenzhen Flour Co. Ltd(hereinafter referred to as “Shenzhen Flour”) 25.00% tax exemption for someShenliang Quality Inspection Co. Ltd. (hereinafter referred to as “Shenliang QualityInspection”) 20.00%
Hainan Shenliang Oil & Food Co. Ltd. (hereinafter referred to as “Hainan Oil & Food”) 20.00%
Shenzhen Shenliang Doximi Business Co. Ltd. (hereinafter referred to as “Doximi”) 25.00%
Zhenpin Market Operation Technology Co. Ltd. (hereinafter referred to “Zhenpin Market”) 25.00%Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd(hereinafter referred to as “BigKitchen”) 25.00%
Shenzhen Shenliang Storage (Yingkou) Co. Ltd(hereinafter referred to as “Yingkou Storage”) 25.00%Shenzhen Shenliang Cold Chain Logistics Co. Ltd.(hereinafter referred to as “Cold ChainLogistics”) 15.00%Shenzhen Shenliang Property Development Co. Ltd.(hereinafter referred to as “ShenliangProperty Development”) 25.00%Shenzhen Shenliang Property Management Co. Ltd. (hereinafter referred to as “ShenliangProperty Management”) 20.00%
Dongguan Shenliang Logistics Co. Ltd.(hereinafter referred to as “Dongguan Logistics”) 25.00%
Dongguan International Food Industrial Park Development Co. Ltd.(hereinafter referred to as
“International Food”) 25.00%Dongguan Shenliang Oil & Food Trade Co. Ltd.(hereinafter referred to as “Dongguan Oil &Food”) 25.00%
Shuangyashan Shenliang Cereals Base Co. Ltd. (hereinafter referred to as “Shuangyashan”) 25.00%Shenzhen Shenbao Huacheng Technology Co. Ltd. (hereinafter referred to as “ShenbaoHuacheng”) 15.00%Wuyuan Ju Fang Yong Tea Industry Co. Ltd(hereinafter referred to as “Wuyuan Ju FangYong”) 15.00%Shenzhen Shenshenbao Investment Co. Ltd(hereinafter referred to as “ShenshenbaoInvestment”) 25.00%
Shenzhen Shenshenbao Tea Culture Commercial Management Co. Ltd.(hereinafter referred to
as “Shenbao Tea Culture”) 25.00%
Hangzhou Ju Fang Yong Holding Co. Ltd(hereinafter referred to as “Ju Fang Yong Holding”) 25.00%
Hangzhou Fuhaitang Catering Management Chain Co. Ltd. (hereinafter referred to as
“Fuhaitang Catering”) 25.00%Hangzhou Fuhaitang Tea Ecology Technology Co. Ltd(hereinafter referred to as “FuhaitangTea Ecology”) 25.00%
Mount Wuyi Shenbao Rock Tea Co. Ltd.(hereinafter referred to as “Shenbao Rock Tea”) 25.00%
Yunnan Shenbao Pu’er Tea Supply Chain Management Co. Ltd. (hereinafter referred to as
“Pu’er Tea Supply Chain”) 25.00%
Shenzhen Shenliang Food Co. Ltd. (hereinafter referred to as “Shenzhen Shenliang Food”) 25.00%Yunnan Pu’er Tea Trading Center Co. Ltd. (hereinafter referred to as “Pu’er Tea TradingCenter”) 25.00%
Huizhou Shenliang Food Co. Ltd. (hereinafter referred to as “Huizhou Shenliang Food”) 25.00%
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”)Shenzhen Shenbao Industrial & Trading Co. Ltd (hereinafter referred to as “ShenbaoIndustrial & Trading”) 25.00%
Wuhan Jiacheng Biotechnology Co. Ltd (hereinafter referred to as “Wuhan Jiacheng”) 15.00%
Hubei Jiacheng Biotechnology Co. Ltd (hereinafter referred to as “Hubei Jiacheng”) 25.00%
Wuhan Hongqu Health Biology Co. Ltd (hereinafter referred to as “Wuhan Hongqu”) 25.00%
Macheng Jintian Camellia Oil Co. Ltd.(hereinafter referred to as“Macheng Jintian”) 25.00%
144深圳市深粮控股股份有限公司2023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 2023 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 2023.
3. Enterprise income tax
(1) On May 27 2021 the General Administration 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.
145深圳市深粮控股股份有限公司2023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) On Oct. 12 2022 Wuhan Jiacheng a subsidiary of the Company obtained the High-tech Enterprise Certificate (Certificate
No.:GR202242000734) jointly issued by the Department of Science and Technology of Hubei Province the Hubei Provincial
Department of Finance of Hubei Province and the Hubei 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. Wuhan Jiacheng
enjoys the preferential tax policy from 2022 to 2025.
(5) 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.
(6) 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.
(7) 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 and Shenliang Quality Inspection 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 10106.10 69686.00
Cash in bank 233808796.22 52837770.89
Other monetary fund 2565704.28 1196314.11
Total 236384606.60 54103771.00
146深圳市深粮控股股份有限公司2023年度报告全文
Other explanation:
The details of monetary funds that are restricted in use due to mortgage pledge or freezing restricted in centralized management
and withdrawal of funds and restricted in repatriation due to being placed overseas are as follows:
Item Ending balance Ending balance of last period
Guarantee deposit 1800000.00 1000000.00
Letter of credit deposit 691708.31
Litigation related freezing 2973129.00
Other 8301.74
Total 5464837.31 1008301.74
2.Tradable financial assets
In RMB
Item Ending balance Opening balance
Financial assets measured by fair value
and with variation reckoned into current 1122347.85 46676652.91
gains/losses
Including:
Equity investment instrument 1122347.85 1228132.36
Structured financial products 45448520.55
Including:
Total 1122347.85 46676652.91
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 113932.00 270109.00
Total 113932.00 270109.00
(2) Accrued bad debt provision
In RMB
Ending balance Opening balance
Category Book value Bad debts reserve Book Book value Bad debts reserve Book
Amount Ratio Amount Accrued value Amount Ratio Amount Accrued value
147深圳市深粮控股股份有限公司2023年度报告全文
ratio ratio
Including:
Including:
Portfolio
of sales
receivable
Object-
specific
portfolio
If the provision for bad debts of accounts receivable is made based on the general model of expected credit losses:
□Applicable□Not applicable
(3) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Amount changed in the period
Category Opening balance Accrual Collected orreversal Written-off Other
Ending balance
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable□Not applicable
(4) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
(5) Notes endorsement or discount and undue on balance sheet date
Item Ending derecognized amount Ending not derecognized amount
(6) Note receivable actually 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
148深圳市深粮控股股份有限公司2023年度报告全文
Within 1 year(inclusive) 185011814.38 238932228.39
1-2 years 1411768.67 1392647.25
2-3 years 732353.29 2237506.92
Over 3 years 95284580.37 93508707.26
3-4 years 2124859.32 405778.29
4-5 years 80685.16 720664.43
Over 5 years 93079035.89 92382264.54
Total 282440516.71 336071089.82
(2)Accrued bad debt provision
In RMB
Ending balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Accr AccrAmount Ratio Amount ual Book value Amount Ratio Amount ual Book value
ratio ratio
Account
receivab
le with
bad debt
provisio 99603414 35.27 99513955 99.91 96298242 28.65 9572503 99.40
n 89458.93 573203.97.71 % .78 % .86 % 8.89 %
accrual
on a
single
basis
Includin
g:
Account
receivab
le with
bad debt
provisio 18283710 64.73 3098066. 1.69 17973903 23977284 71.35 3516949. 1.47 23625589
n 2.00 % 95 % 5.05 6.96 % 98 % 6.98
accrual
on
portfolio
Includin
g
Portfo
lio of
sales 11606660 41.09 3098066. 2.67 11296853 14229176 42.34 3516949. 2.47 13877481
receivab 4.29 % 95 % 7.34 9.29 % 98 % 9.31
le
Objec
t- 66770497 23.64 66770497 97481077 29.01 97481077
specific 0.00.71 % .71 .67 % .67
portfolio
28244051100.01026120236.331798284933607108100.0992419829.5323682910
Total
6.710%2.73%3.989.820%8.87%0.95
Bad debt provision accrual on single basis: 99513955.78 yuan
In RMB
Opening balance Ending balance
Name
Book balance Bad debt Book balance Bad debtprovision provision Accrual ratio Accrual causes
149深圳市深粮控股股份有限公司2023年度报告全文
Bad debt
provision Low possibility
96298242.8695725038.8999603414.7199513955.7899.91%
accrual on of recovery
single basis
Total 96298242.86 95725038.89 99603414.71 99513955.78
Bad debt provision accrual on portfolio:Portfolio of sales receivable
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Portfolio of sales receivable 116066604.29 3098066.95 2.67%
Total 116066604.29 3098066.95
Explanation on the basis for determining portfolio:
Bad debt provision accrual on portfolio: object-specific portfolio
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Object-specific portfolio 66770497.71
Total 66770497.71
Explanation on the basis for determining portfolio:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses:
□ Applicable□Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Change in current period
Category Opening balance
Accrued Collected or Ending balancereversal Charged off Other
Bad debt
provision
for 99241988.87 4462277.15 866026.81 -226216.48 102612022.73
accounts
receivable
Total 99241988.87 4462277.15 866026.81 -226216.48 102612022.73
Important bad debt provision 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
Other explanation:
(4) Account receivable actually charged off in the period
In RMB
Item Amount charged off
Including major account receivable charged off:
In RMB
150深圳市深粮控股股份有限公司2023年度报告全文
Enterprise Nature Amount charged off Written-off causes Procedure of Resulted by relatedwritten-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
Ending balance of
Ratio in total
Ending balance of bad debt reserve
Ending balance of Ending balance of ending balance of
Name account receivable and impairment
account receivable contract assets account receivable
and contract assets reserve of contract
and contract assets
assets
First 65578088.99 65578088.99 23.22%
Second 15732842.83 15732842.83 5.57% 157328.43
Third 10455627.54 10455627.54 3.70% 10455627.54
Fourth 9136940.00 9136940.00 3.23% 91369.40
Fifth 4582156.00 4582156.00 1.62% 4582156.00
Total 105485655.36 105485655.36 37.34% 15286481.37
6.Contract asset
(1)Contract asset
In RMB
Ending balance Opening balance
Item Bad debt Bad debt
Book balance Book value Book balance Book value
reserve reserve
(2)The 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 debt provision
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:
If the provision for bad debts of accounts receivable is made based on the general model of expected credit losses:
□Applicable□Not applicable
(4) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
151深圳市深粮控股股份有限公司2023年度报告全文
In RMB
Amount changed in the period
Category Opening balance
Accrued Collected or
Ending balance
reversal Charged off Other
Bad debt provision
Total
Important bad debt provision 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 actually 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 debt provision
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:
The provision for bad debts of accounts receivable is made based on the general model of expected credit losses:
In RMB
Phase I Phase II Phase III
Bad debt provision 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)
152深圳市深粮控股股份有限公司2023年度报告全文
Balance on Jan. 1 2023
in the period
Classification basis and accrued ratio of bad debt provision for each stage
Explanation on significant changes in the financing book balance of accounts receivable with changes in impairment provision in
the current period:
(3)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance
Accrued Collected or
Ending balance
reversal Written-off Other
Bad debt provision
Total
Important bad debt provision 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 pledge at period-end
(5)Account receivable financing endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognized at period-end Amount not derecognized at period-
end
(6) Account receivable financing actually 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 Resulted by relatedoff charged off transaction (Y/N)
Explanation on account receivable financing charged off:
153深圳市深粮控股股份有限公司2023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 29127689.89 32910189.14
Total 29127689.89 32910189.14
(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 debt provision
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Collected orreversal Written-off Other
Bad debt provision
Total
Important bad debt provision 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:
154深圳市深粮控股股份有限公司2023年度报告全文
5) Interest receivable actually 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 debt provision
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance
Accrued Collected or
Ending balance
reversal Written-off Other
Bad debt provision
Total
Important bad debt provision 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:
155深圳市深粮控股股份有限公司2023年度报告全文
5) Dividend receivable actually charged off in the period
Unit: RMB
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 10671175.15 14170451.49
Other intercourse funds 121009368.29 122723170.61
Total 131680543.44 136893622.10
2)By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 18288294.29 13369415.17
1-2 years 9503326.35 15602452.42
2-3 years 2536281.98 4109695.16
Over 3 years 101352640.82 103812059.35
3-4 years 3501011.75 1819777.03
4-5 years 1478563.36 1778322.12
Over five years 96373065.71 100213960.20
Total 131680543.44 136893622.10
3)Accrued bad debt provision
□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:
Portfolio
of expected
156深圳市深粮控股股份有限公司2023年度报告全文
credit risk
feature
Object-
specific
portfolio
If the provision for bad debts of accounts receivable is made based on 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 debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance of Jan. 1 2023 2845796.16 101137636.80 103983432.96
Balance of Jan. 1 2023
in the period
Current accrual 35458.20 429022.36 464480.56
Current reversal 227688.53 661005.22 888693.75
Other changes -6366.22 -1000000.00 -1006366.22
Balance on Dec. 31
2647199.6199905653.94102552853.55
2023
Classification basis and bad debt provision ratio for each stage
Changes in book balance with significant changes in impairment provision in the current period
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Bad debt provision of
other accounts -103983432.96 464480.56 888693.75 102552853.55
receivable 1006366.22
Total -103983432.96 464480.56 888693.75 102552853.55
1006366.22
Important bad debt provision 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
5) Other account receivable actually charged off in the period
Unit: RMB
Item Amount charged off
Including major other account receivable charged off:
Unit: RMB
157深圳市深粮控股股份有限公司2023年度报告全文
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 24035157.99 Over five years 18.25% 22187644.18
Second Intercourse funds 8326202.63 Over five years 6.32% 8326202.63
Third Intercourse funds 8285803.57 Over five years 6.29% 8285803.57
Fourth Intercourse funds 8257311.80 Over five years 6.27% 8257311.80
Fifth Intercourse funds 5677473.59 Over five years 4.31% 5677473.59
Total 54581949.58 41.44% 52734435.77
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 16244819.71 94.26% 64831898.58 99.00%
1-2 year 676069.63 3.92% 361081.54 0.55%
2-3 years 95050.89 0.55% 175520.68 0.27%
Over 3 years 218761.69 1.27% 118890.08 0.18%
Total 17234701.92 65487390.88
Explanation on reasons for not timely settling important account paid in advance with age 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 6120096.80 35.51
Second 5027279.80 29.17
Third 875762.79 5.08
Fourth 591197.44 3.43
Fifth 437100.00 2.54
Total 13051436.83 75.73
Other explanation:
158深圳市深粮控股股份有限公司2023年度报告全文
10.Inventory
Does the Company need to comply with the disclosure requirements of the real estate industry
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 63123938.67 15039481.32 48084457.35 70633688.83 13324174.78 57309514.05
Goods in
process 27382027.01 0.00 27382027.01 25496450.76 25496450.76
Finished goods 3449447657.13 87071319.87 3362376337.26 3574759554.65 80193872.72 3494565681.93
Revolving
material 2935812.93 1685748.86 1250064.07 5171075.84 998163.23 4172912.61
Goods in
transit 12559426.44 12559426.44 11981893.90 11981893.90
Low value
consumables -
6824189.9432513.036791676.914806860.404806860.40
packaging
materials
Work in
process- 5438363.67 5438363.67 0.00 5999159.19 5290502.32 708656.87
outsourced
Total 3567711415.79 109267426.75 3458443989.04 3698848683.57 99806713.05 3599041970.52
(2)Inventories fall provision or provision for impairment of contract performance costs
In RMB
Opening Current amount increased Current amount decreasedItem balance Ending balanceAccrual Other Reversal orwrite-off Other
Raw materials 13324174.78 2630983.00 915676.46 15039481.32
Goods in
process 0.00
Finished goods 80193872.72 102279510.56 95269436.02 132627.39 87071319.87
Revolving
material 998163.23 775274.19 87688.56 1685748.86
Low value
consumables -
200280.13166861.92905.1832513.03
packaging
materials
Work in
process- 5290502.32 147861.35 5438363.67
outsourced
Total 99806713.05 106033909.23 96439662.96 133532.57 109267426.75
Inventories fall provision accrued in terms of portfolio
In RMB
Portfolio name Ending Opening
159深圳市深粮控股股份有限公司2023年度报告全文
Ending balance Inventories fall
Accrued ratio of Accrued ratio of
provision inventories fall
Opening Inventories fall
provision balance provision
inventories fall
provision
Standard for inventories fall provision accrued in terms of portfolio
(3)Explanation of the capitalized amount of borrowing costs included in the ending balance of inventory
(4) Explanation on the current amortization amount of contract performance costs
11.Assets held for sale
In RMB
Item Ending book Impairment Ending book Fair value Estimated Estimatedbalance provision value disposal cost disposal time
Intangible asset 12853604.67 12853604.67 12853604.67 0.00
Jan. 31 2023
Subsidiary
Wuhan 108272532.95 108272532.95 108272532.95 0.00
Jiacheng Mar. 15 2024
Total 121126137.62 121126137.62 121126137.62
Other explanation:
Wuhan Jiancheng
Item Ending book value
Assets in disposal groups held for sale
Monetary funds 1469717.13
Notes receivable 40000.00
Accounts receivable 5309159.47
Prepayments 245719.70
Other receivables 5249753.33
Inventory 7419831.60
Other current assets 2004949.59
Fixed assets 66145101.31
Construction in progress 1028320.24
Intangible assets 16747743.46
Goodwill 1953790.56
Long term deferred expenses 315990.26
Deferred tax assets 220105.30
Other non current assets 122351.00
Total assets 108272532.95
Liabilities in disposal groups held for sale
Short term loans 23376944.44
Accounts payable 8898907.78
Contract liabilities 1618717.24
Payable employee compensation 1881313.17
160深圳市深粮控股股份有限公司2023年度报告全文
Item Ending book value
Payable taxes and fees 120497.51
Other payables 25614407.07
Other current liabilities 2894.73
Deferred income 3079323.34
Deferred tax liability 1986823.31
Total liabilities 66579828.59
Note: The company transferred 51% of the equity and debt of Wuhan Jiacheng through public listing to Tianyu Environment. With
June 30 2023 as the asset evaluation benchmark date the assessed value of the shareholders’ equity of Wuhan Jiacheng is RMB
45.325 million. As of December 31 2023 the company has received a total of RMB 16.936 million in debt transfer payments and no
less than 30% equity transfer payments. As the articles of association of Wuhan Jiacheng have not been amended the board of
directors has not been reelected and the transferee has not appointed senior management personnel such as directors and general
managers the company still controls Wuhan Jiacheng. The remaining equity transfer payment was received on March 8 2024.
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 48868668.82 31248541.96
Certificate of deposit 30226849.32
Gains/losses from assets to be disposed 1623160.79 196415.59
Prepayment of taxes 25137638.10 1152463.71
VAT deduction amount 1606.45
Total 105857923.48 32597421.26
Other explanation:
14.Creditors’ investment
(1) Creditors’ investment
In RMB
Item Ending balance Opening balance
161深圳市深粮控股股份有限公司2023年度报告全文
Book balance Impairment Book value Book balance Impairmentprovision 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 debt provision 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 2023
in the period
Classification basis and accrued ratio of bad debt provision for each stage
(4) Debt investment actually charged off in the period
Unit: RMB
Item Amount charged off
Including major debt investment charged off:
Explanation on debt investment charged off:
Changes in book balance with significant changes in the current period's provision for losses
□Applicable□Not applicable
Other explanation:
15.Other creditors’ investment
(1)Other creditors’ investment
In RMB
Impairment
provision
Item Opening Accrual Interest
Change of fair
value in the Ending
Accumulated accumulated
balance interest adjustment balance Cost change of recognized in Noteperiod fair value other
comprehensive
income
Changes in provision for impairment of other debt investments in the current period
In RMB
162深圳市深粮控股股份有限公司2023年度报告全文
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 debt provision Expected credit losses Expected credit losses for Expected credit losses for Total
over next 12 months the entire duration (without the entire duration (withcredit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2023
in the period
Classification basis and accrued ratio of bad debt provision for each stage
(4) Other debt investment actually charged off in the period
Unit: RMB
Item Amount charged off
Including major other debt investment charged off:
Explanation on other debt investment charged off:
Changes in book balance with significant changes in the current period's provision for losses
□Applicable□Not applicable
Other explanation:
16.Other equity instrument investment
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
Ending Opening
Item comprehensive comprehensive comprehensive comprehensive
recognized with changes
balance balance 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
163深圳市深粮控股股份有限公司2023年度报告全文
Sub-item disclosure of current non-trading equity instrument investments
In RMB
Reasons for
Amount of defining fair Reasons for
other value transferringmeasurement other
comprehensive
Dividends Accumulated Accumulated with changes comprehensive
Item income
income gains losses recognized in income to
transferred to other retained
retained comprehensive earnings
earnings income
Other explanation:
17.Long-term account receivable
(1)Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value range
reserve reserve
(2)Accrued bad debt provision
In RMB
Ending balance Opening balance
Book balance Bad debts reserve Book balance Bad debts reserve
Category Book Book
Accrued
Amount Ratio Amount value
Accrued
Amount Ratio Amount value
ratio ratio
Including:
Including:
The bad debts reserve is made based on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrual ratio计提比例
Explanation on determining the basis of this portfolio:
The bad debt reserve is made in terms of the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Bad debt provision Expected credit losses Expected credit losses for Expected credit losses for Total
over next 12 months the entire duration (without the entire duration (withcredit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2023
in the period
Classification basis and accrued ratio of bad debt provision for each stage
164深圳市深粮控股股份有限公司2023年度报告全文
(3)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Bad debt provision
Total
Important bad debt provision 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 actually 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
Openi Opening Current changes (+/-) Endin Ending
ng balance Add Ca Investm Other Oth Cash Accru g balance
balan of ition pit ent compre er dividend al of
O balan of
The invested entity ce impairm al al gains hensive equ or profit impair
t ce impairm
(book ent inve red recogniz income ity announc ment
h (book ent
value) provisio stm uct ed under adjustm cha ed to provis
e value provisio
n ent ion equity ent nge issued ion r ) n
I. Joint venture
II. Associated enterprise
Shenzhen Duoxi 2170 - 1587
Equity Investment
Fund Management 792.1 583068. 723.Co. Ltd. 1 30 81
Zhuhai Hengxing 3021 3365
Feed Industrial Co. 3438384746. 3135
Ltd. 9.1929 .48
Shenliang
Intelligent Wulian 2688 2708
Equity Investment 198760.Fund (Shenzhen) 3128. 188996
Partnership 82 .78
Enterprise (Limited)
Shenzhen Shenyuan 1140 278310. 1168
Data Tech. Co. Ltd 7867. 00 6177
165深圳市深粮控股股份有限公司2023年度报告全文
41.41
CR Sanjiu
Shenzhen Tianji
Optoelectronic
Technology Co.Ltd
Shenbao Liaoyuan
Investment 57628.Company 53
Shenzhen Shenbao
(Xinmin) Foods 28700
Co. Ltd. 00.00
Changzhou Shenbao
Chacang E-business
Co. ltd.Shenzhen
Shichumingmen
Catering
Management Co.Ltd.
70677400
Subtotal 333239 292766534. 8926
1.8528.53
63.48
70677400
Total 333239 292766534. 8926
1.8528.53
63.48
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable□Not applicable
The recoverable amount is determined based on 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 Construction inHouse and building Land use right Total
progress
166深圳市深粮控股股份有限公司2023年度报告全文
I. Original book value
1.Opening balance 583090328.15 583090328.15
2.Current amount
increased 66931987.42 66931987.42
(1) Outsourcing
(2) Inventory\fixed
assets\construction in 66931987.42 66931987.42
process transfer-in
(3) Increased by
combination
3.Current amount
decreased 35269941.48 35269941.48
(1) Disposal
(2) Other transfer-out 11040277.30 11040277.30
Transfer-in to fixed
24229664.1824229664.18
assets
4.Ending balance 614752374.09 614752374.09
II. Accumulated
depreciation and
accumulated
amortization
1.Opening balance 365952866.39 365952866.39
2.Current amount
increased 16294197.86 16294197.86
(1) Accrual or
amortization 15637413.49 15637413.49
Transfer-in to fixed
656784.37656784.37
assets
3.Current amount
decreased 31091722.05 31091722.05
(1) Disposal
(2) Other transfer-out 10488263.44 10488263.44
Transfer-in to fixed
20603458.6120603458.61
assets
4.Ending balance 351155342.20 351155342.20
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 263597031.89 263597031.89
2. Opening book value 217137461.76 217137461.76
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable□Not applicable
The recoverable amount is determined based on 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
167深圳市深粮控股股份有限公司2023年度报告全文
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 by fair value
□Applicable□Not applicable
(3)Converted to investment real estate and measure at fair value
In RMB
Impact on other
Accounts before Reason for Approval Impact on
Item Amount comprehensive
conversion conversion procedures gains/losses
income
(4)Investment real estate without property certificate completed
In RMB
Reason for not obtaining the property
Item Book value
rights certificate
7th and 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 2171962173.22 2138124994.69
Disposal of fixed assets 7552.00 3211544.17
Total 2171969725.22 2141336538.86
(1)Fixed assets
In RMB
Item House and Machinery Transport Electronic andbuildings equipment equipment other equipment Total
I. Original book
value:
1.Opening
balance 1908564445.65 780690297.07 19036152.17 100838291.42 2809129186.31
2.Current
amount increased 201459620.17 22382029.57 323000.00 5503870.57 229668520.31
(1)Purchase 11346841.88 323000.00 4047508.43 15717350.31
(2) Construction
in progress 175368080.88 11035187.69 1456362.14 187859630.71
transfer-in
(3) Increased by
combination
(3)Investment real
24229664.1824229664.18
estate transfer-in
168深圳市深粮控股股份有限公司2023年度报告全文
(4)Other increase 1861875.11 1861875.11
3.Current
amount decreased 79358006.40 23512608.78 3152341.42 2220202.35 108243158.95
(1) Disposal
or scrap 6126855.16 589267.95 1431109.72 8147232.83
(2)Investment real
14613525.6614613525.66
estate transfer-out
(3)Classified into
63240700.5017385753.622558545.75789092.6383974092.50
held-for-sale
(4)Other decrease 1503780.24 4527.72 1508307.96
4.Ending
2030666059.42779559717.8616206810.75104121959.642930554547.67
balance
II. Accumulated
depreciation
1.Opening
balance 296442606.89 289288673.36 15269563.39 63350394.38 664351238.02
2.Current
amount increased 65214664.87 38402273.33 1145879.23 11217477.77 115980295.20
(1) Accrual 44611206.26 38402273.33 1145879.23 11217477.77 95376836.59
(2)Investment real
20603458.6120603458.61
estate transfer-in
3.Current
amount decreased 10808252.37 9537430.21 2552029.26 1664400.64 24562112.48
(1) Disposal
or scrap 4569895.59 476824.83 1200678.50 6247398.92
(2)Investment real
363598.43363598.43
estate transfer-out
(3)Classified into
10322530.004967534.622075204.43463722.1417828991.19
held-for-sale
(4)Other decrease 122123.94 122123.94
4.Ending balance 350849019.39 318153516.48 13863413.36 72903471.51 755769420.74
III. Impairment
provision
1.Opening
balance 6627468.94 25484.66 6652953.60
2.Current
amount increased
(1) Accrual
3.Current
amount decreased 3814405.10 15594.79 3829999.89
(1) Disposal
or scrap 3814405.10 15594.79 3829999.89
4.Ending
balance 2813063.84 9889.87 2822953.71
IV. Book value
1.Ending book
value 1679817040.03 458593137.54 2343397.39 31208598.26 2171962173.22
2. Opening book
value 1612121838.76 484774154.77 3766588.78 37462412.38 2138124994.69
(2) Temporarily idle fixed assets
In RMB
Item Original book value Accumulated Impairmentdepreciation provision Book value Note
169深圳市深粮控股股份有限公司2023年度报告全文
(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
576992093.23 Still under processing
Dawn Grain Reserve Warehouse
Housing and buildings of Dongguan
82473841.32 Under processing
Industrial and Trade
grain reserve warehouse 54871599.05 Solving firefighting safety issues
Remaining issues currently being
Office building 13578444.19
followed
1st to 3rd floors of Grain and Oil The joint inspection has not been
4527320.33
Headquarters completed temporarily
Cold storage house 7476162.03 Solving firefighting safety issues
Other explanation:
(5)Impairment testing of fixed assets
□Applicable□Not applicable
(6)Disposal of fixed assets
In RMB
Item Ending balance Opening balance
Machinery equipment 7368.24 3211360.41
Electronic equipment and others 183.76 183.76
Total 7552.00 3211544.17
Other explanation:
22.Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 51288301.16 186884912.13
Total 51288301.16 186884912.13
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Book balance Impairmentprovision Book value Book balance
Impairment
provision Book value
Dongguan grain
32632618.6232632618.62127376376.09127376376.09
storage and
170深圳市深粮控股股份有限公司2023年度报告全文
wharf matching
project
Small
packaging
production line
8880595.198880595.198250772.328250772.32
of Dongguan
Industrial and
Trade
CDE storage of
Dongguan Food
Industrial Park 4965118.29 4965118.29 4152832.01 4152832.01
and wharf
mating projects
Semi automated
renovation
project for
1784995.631784995.631777617.731777617.73
powder
packaging
production line
Deep
processing of
Dongguan Oil 513729.78 513729.78 513729.78 513729.78
& Food
Jiangxia
Bioindustrial
Park 31317609.78 31317609.78
Construction
Project
Shenyuan data
technology
smart logistics
2777600.002777600.00
park
management
platform project
Other 7256767.03 4745523.38 2511243.65 15463897.80 4745523.38 10718374.42
Total 56033824.54 4745523.38 51288301.16 191630435.51 4745523.38 186884912.13
(2)Changes of major construction in progress
In RMB
Propo Includi
Othe rtion ng:of amount
Current rTransfer decre projec
Accumu of Interestlated capitali Capit
Item Budget Opening amount Ending t Prog capitali albalance increase -in fixed asedassets in the balance invest ress
capitaliz zation zation
d ation of rate in
resou
Perio ment interest of Period rces
d in interestbudge in
t Period
Dong
guan Loan
grain s
stora from
ge 1242000 127376 96404 191148 32632 88.53 88.5 372219 10037
and 3.00% finan000.00 376.09 766.99 524.46 618.62 % 3% 95.16 56.90
wharf cial
matc instit
hing ution
proje
171深圳市深粮控股股份有限公司2023年度报告全文
ct
CDE
stora
ge of
Dong
guan Loan
Food s
Indus from
trial 1087300 415283 11915 379300. 49651 98.79 98.7 867305 finan
Park 000.00 2.01 86.91 63 18.29 % 9% 68.74 cial
and instit
wharf
matin ution
g
proje
cts
Total 2329300 131529 97596 191527 37597 123952 10037
000.00208.10353.90825.09736.91563.9056.90
(3)Provision for impairment 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 Impairmentprovision Book value Book balance
Impairment
provision Book value
Other explanation:
23.Productive biological asset
(1)Measured at cost
□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
172深圳市深粮控股股份有限公司2023年度报告全文
amount decreased
(1)Disposal
(2)Other
4.Ending
balance 416771.28 416771.28
II. Accumulated
depreciation
1.Opening
balance 48461.88 48461.88
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 58154.28 58154.28
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 358617.00 358617.00
2. Opening book
value 368309.40 368309.40
(2)Impairment testing of productive biological asset measured at cost model
□Applicable□Not applicable
(3)Measured at fair value
□Applicable□Not applicable
24. Oil and gas asset
□ Applicable□Not applicable
25. Right-of-use asset
In RMB
173深圳市深粮控股股份有限公司2023年度报告全文
Item House and building Land use rights Total
I. Original book value
1.Opening balance 116758420.82 1823669.22 118582090.04
2.Current amount
increased 7645189.94 7645189.94
(1)Lease 7645189.94 7645189.94
3.Current amount
13928811.8613928811.86
decreased
Other decrease 13928811.86 13928811.86
4.Ending balance 110474798.90 1823669.22 112298468.12
II. Accumulated depreciation
1.Opening balance 39805615.38 471636.38 40277251.76
2.Current amount
increased 22095885.37 232168.56 22328053.93
(1) Accrual 22095885.37 232168.56 22328053.93
3.Current amount
decreased 7239985.73 7239985.73
(1) Disposal 7239985.73 7239985.73
(2)Other decrease
4.Ending balance 54661515.02 703804.94 55365319.96
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 55813283.88 1119864.28 56933148.16
2. Opening book value 76952805.44 1352032.84 78304838.28
(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 Trademar
Software Forest use Shop use
right technolo k rights usage rights Other Total
gy rights
rights
I.Original
book
value
1.Openin 64047728 4998043 184073.3 6567185 2285910 2524391 80441666
g balance 2.33 9.11 2 2.28 4.98 0.01 2.03
2.Current 3895205. 4335935 2026944 450000 28950581.
174深圳市深粮控股股份有限公司2023年度报告全文
amount 38 .67 0.41 .00 46
increased
(1)154644445000015914440.
Purchase 0.41 .00 41
(2)Interna 3895205. 1104197 4999402.8
l R&D 38 .48 6
(3)
Increased
by 0.00
combinati
on
(4)Othe 3231738 4805000. 8036738.1
r increase .19 00 9
3.Current
amount 52309996. 3231738. 1766377. 57394112.86000.00
decreased 37 19 74 30
(1)9704520.01217887.11008407.
Disposal 86000.000 18 18
(2)Classif
ied into 38233585. 548490.5 38782076.held-for- 69 6 25
sale
(3)Other 4371890.6 3231738. 7603628.8
decrease 8 19 7
4.Ending 58816728 5064390 4434008 8417491 2285910 2524391 450000 77597313
balance 5.96 6.30 .99 4.95 4.98 0.01 .00 1.19
II.Accumula
ted
depreciati
on
1.Openin 12844029 3008533 146185.8 2430285 7717446. 1261286 20330498
g balance 4.77 9.23 3 6.79 37 2.07 5.06
2.Current
amount 15961912. 1093550. 1296210 1170230 772863.0 3533492. 37500. 34397837.increased 76 90 .24 8.50 5 09 00 54
(1)15961912.1093550.1151860772863.03533492.37500.32945403.
Accrual 27484.4476 90 0.15 5 09 00 39
(2)Othe 1268725 183708.3 1452434.1
r increase .80 5 5
3.Current
amount 12137743. 1268725. 141935.8 13608530.60125.09
decreased 41 80 7 17
(1)1326284.41464354.7
Disposal 60125.09 77945.300 9
(2)Classif
ied into 9116737.5 9116737.5
held-for- 5 5
sale
(3)Other 1694721.4 1268725. 3027437.8
63990.57
decrease 6 80 3
4.Ending 13226446 2991016 1382270 3586322 8490309. 1614635 37500. 22409429
balance 4.12 4.33 .98 9.42 42 4.16 00 2.43
III.Impairme
nt
provision
1.Openin 5553283. 1130341. 6683625.4
g balance 54 88 2
2.Current
amount
175深圳市深粮控股股份有限公司2023年度报告全文
increased
(1)
Accrual
Disposal
3.Current
amount 1130341. 1130341.8
decreased 88 8
(1)1130341.1130341.8
Disposal 88 8
4.Ending 5553283. 5553283.5
balance 54 4
IV. Book
value
1.Ending
book 45590282 1518045 3051738 4831168 1436879 9097555. 412500 54632555
value 1.84 8.43 .01 5.53 5.56 85 .00 5.22
2.
Opening 51203698 1434181 4023865 1514165 1263104 59442805
book 37887.497.56 6.34 3.61 8.61 7.94 1.55
value
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end
(2)Land use rights without certificate of ownership
In RMB
Reasons for without the property
Item Book value
certification
Land use right 7849990.00 Still in progress
Other explanation:
(3)Impairment testing of intangible assets
□Applicable□Not applicable
27.Goodwill
(1)Original book value of goodwill
In RMB
The invested Current increased Current decreased
entity or matters Opening balance Formed bybusiness Disposal Ending balanceforming goodwill combination
Wuhan Jiacheng
Biotechnology 1953790.56 1953790.56
Co. Ltd
Yunnan Pu’er Tea
Trading Center 673940.32 673940.32
Co. Ltd.Total 2627730.88 1953790.56 673940.32
(2)Impairment provision of goodwill
In RMB
176深圳市深粮控股股份有限公司2023年度报告全文
The invested Current increased Current decreased
entity or matters Opening balance
forming goodwill Accrual Dispose
Ending balance
Yunnan Pu’er Tea
Trading Center 673940.32 673940.32
Co. Ltd.Total 673940.32 673940.32
(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 based on the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined based on 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
Improvement
expenditure for fix 14672529.67 2494068.98 3769714.34 4851884.96 8544999.35
assets
Decoration fee 14336656.34 2626952.90 3215344.57 1331421.28 12416843.39
Other 4067063.89 1340981.13 1675569.71 3732475.31
Total 33076249.90 6462003.01 8660628.62 6183306.24 24694318.05
Other explanation:
177深圳市深粮控股股份有限公司2023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 79024031.58 18487424.12 61591107.94 14415444.33
Unrealized profits in
internal transactions 3110821.11 1173392.02 3044122.07 456618.31
Lease liabilities 60423752.25 9667435.83 82207570.11 13502231.97
Credit impairment loss 131582333.01 32508076.97 101461154.87 24872591.18
Total 274140937.95 61836328.94 248303954.99 53246885.79
(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
increment of enterprise
43635535.0410908883.8659019394.0113381949.47
combine under different
control
Right-of-use asset 56763213.31 9108070.16 78304838.28 12857821.85
Total 100398748.35 20016954.02 137324232.29 26239771.32
(3)Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Trade-off 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
off-set period-begin off-set
Deferred income tax
asset 9079033.56 52757295.38 12851721.79 40395164.00
Deferred income tax
liabilities 9079033.56 10937920.46 12851721.79 13388049.53
(4)Details of uncertain deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 73593637.62 139979872.07
Deductible loss 222144931.91 205772485.05
Total 295738569.53 345752357.12
(5) Deductible losses of de-recognized deferred income tax assets expiring in following years
In RMB
Year Ending balance Beginning balance Note
202343533321.78
178深圳市深粮控股股份有限公司2023年度报告全文
202416724256.1626558015.85
202557064985.8322735816.79
202619372001.0038812670.46
202730608347.9974132660.17
202872586319.51
20296398410.06
20301592707.06
203111566491.62
20326231412.68
Total 222144931.91 205772485.05
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
Prepaid for
3774032.763774032.768831064.908831064.90
system
Property to be
3523917.243523917.24
relocated
Prepaid for
122351.00122351.00
equipment
Total 7297950.00 7297950.00 8953415.90 8953415.90
Other explanation:
31.The assets rights restricted till end of the period
In RMB
Item Ending Beginning
Book Restriction Restriction Book Restriction Restriction
Book value Book value
balance type status balance type status
Guarantee
deposit
Guarantee
credit
Monetary deposit
5464837.31 5464837.31 deposit 1008301.74 1008301.74
fund credit
lawsuit
deposit. etc
freezing
etc.Total 5464837.31 5464837.31 1008301.74 1008301.74
Other explanation:
32.Short-term loans
(1) By category
In RMB
Item Ending balance Opening balance
Guaranteed Loan 10015277.78
Loan in credit 1223462519.16 1182195809.59
179深圳市深粮控股股份有限公司2023年度报告全文
Total 1223462519.16 1192211087.37
Explanation on category of short-term loans:
(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
Tradable financial liability 288486.18
Including:
Including 288486.18
Including:
Total 288486.18
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
Total 0.00 0.00
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 157073307.00 193989937.97
Account payable for engineering 176815688.99 196037079.96
Other 2276200.81 122000.20
Total 336165196.80 390149018.13
180深圳市深粮控股股份有限公司2023年度报告全文
(2) Major accounts payable with age over one year
In RMB
Item Ending balance Reason for not repaying or carry-over
Other explanation:
37.Other account payable
In RMB
Item Ending balance Opening balance
Dividend payable 2933690.04 2933690.04
Other account payable 274753900.79 296860258.44
Total 277687590.83 299793948.48
(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
2690970.142690970.14
Company
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 212017192.04 212410539.40
Deposit and margin 59175450.98 73717653.72
Engineering quality assurance deposit and
2697829.081360325.16
final payment
Accrued expenses 863428.69 9371740.16
Total 274753900.79 296860258.44
181深圳市深粮控股股份有限公司2023年度报告全文
2)Significant other account payable with over 1 year aging or overdue significant other account payable
In RMB
Item Ending balance Reason for not repaying or carry-over
3)Top 5 other accounts receivable at ending balance by arrears party
Other explanation:
38.Accounts received in advance
(1)Accounts received in advance
In RMB
Item Ending balance Opening balance
Lease payment received in advance 3654.89
Other 1081046.71 1355802.01
Total 1084701.60 1355802.01
(2) Significant accounts received in advance with over 1 year aging 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.Contractual liabilities
In RMB
Item Ending balance Opening balance
Sales price 86566253.73 110177908.96
Total 86566253.73 110177908.96
Significant contractual 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 324402647.33 286007238.67 357270189.90 253139696.10
II. After-service 13955184.50 32455927.34 34096869.34 12314242.50
182深圳市深粮控股股份有限公司2023年度报告全文
welfare-defined
contribution plans
III. Dismissed welfare 876674.60 385332.80 501282.80 760724.60
Total 339234506.43 318848498.81 391868342.04 266214663.20
(2)Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wage bonus
allowance and subsidy 315645971.54 240740426.65 311501327.06 244885071.13
2. Employees’ welfare 798260.16 8448468.28 9157863.75 88864.69
3. Social insurance
charges 373330.56 8256360.36 8327141.79 302549.13
Including: medical
insurance premium 330963.19 7545320.54 7603604.83 272678.90
Industrial injury
insurance 8429.56 323901.44 329001.07 3329.93
premiums
Maternity
insurance 33937.81 387138.38 394535.89 26540.30
premiums
4. Housing public
reserve 50807.20 20830550.40 20844569.40 36788.20
5. Trade union fee and
education fee 7534277.87 7674432.98 7391287.90 7817422.95
Other short-term
57000.0048000.009000.00
compensation
Total 324402647.33 286007238.67 357270189.90 253139696.10
(3)Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
insurance premiums 350358.14 16917593.00 17240599.78 27351.36
2. Unemployment
insurance premiums 10256.72 372615.47 376496.38 6375.81
3. Enterprise annuity 13594569.64 15165718.87 16479773.18 12280515.33
Total 13955184.50 32455927.34 34096869.34 12314242.50
Other explanation:
41.Taxes payable
In RMB
Item Ending balance Opening balance
VAT 3929827.56 4549095.77
Enterprise income tax 78612383.92 59136130.15
Personal income tax 919489.66 3246378.11
183深圳市深粮控股股份有限公司2023年度报告全文
Urban maintenance and construction tax 184436.23 254333.53
Property tax 1402724.23 1333445.64
Stamp tax 924833.66 1175093.10
Educational surtax 253657.15 185644.26
Deed tax 664227.84 664227.84
Use tax of land 15205.45 190127.68
Other 4908.73
Total 86906785.70 70739384.81
Other explanation:
42.Liability held for sale
In RMB
Item Ending balance Opening balance
Subsidiary Wuhan Jiacheng 66579828.59
Total 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 22805473.76 21770690.45
Total 22805473.76 21770690.45
Other explanation:
44.Other current liabilities
In RMB
Item Ending balance Opening balance
Payable refund payment 33600.00
Deferred output tax 3896108.63 1078519.07
Other 31.93
Total 3896140.56 1112119.07
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)
Total -- -- --
Other explanation:
45.Long-term loan
(1) Category of long-term loan
In RMB
184深圳市深粮控股股份有限公司2023年度报告全文
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
Total 0.00 0.00
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Accrual Premium Breach
Bonds Face Issuance Bonds Amount Opening
Issued in
the interest and
Paid in
the Ending contractvalue date term issued balance period by face discountvalue amortization period
balance or
not(Y/N)
Total --
(3) Convertible conditions and time for shares transfer for the 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 64121413.50 88673874.53
Unrecognized financing charges -3570988.00 -6466304.42
Lease liabilities due within one year -22805473.76 -21770690.45
Total 37744951.74 60436879.66
Other explanation:
48.Long-term account payable
In RMB
185深圳市深粮控股股份有限公司2023年度报告全文
Item Ending balance Opening balance
Special account payable 17994633.05 17620572.48
Total 17994633.05 17620572.48
(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
16121280.3993122.5716214402.96
government reserve
grain depots
Special funding for
research in the
207477.09207477.09
grain public
welfare industry
Shenzhen Hospital
Phase III Housing
Expropriation 1291815.00 237438.00 1529253.00
Property Rights
Exchange
Grain and oil
market monitoring
3500.003500.00
and early warning
subsidy
Special funds for
the construction
and maintenance of 40000.00 40000.00
the grain
emergency system
Total 17620572.48 374060.57 17994633.05
Other explanation:
49. Long-term wage payable
(1) Long-term wage payable
In RMB
Item Ending balance Opening balance
Total 0.00 0.00
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
186深圳市深粮控股股份有限公司2023年度报告全文
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:
Other explanation:
50.Accrual liabilities
In RMB
Item Ending balance Opening balance Causes
External guarantee 3500000.00
Total 3500000.00
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 87077137.27 8914774.39 13172038.42 82819873.24
Total 87077137.27 8914774.39 13172038.42 82819873.24 --
Other explanation:
For detailed information on government grant booked into deferred income please refer to Note XI. Government grant
52.Other non-current liabilities
In RMB
Item Ending balance Opening balance
Other explanation:
53. Share capital
In RMB
Increased (decreased) in this year +-
Opening balance New shares Shares Ending balance
issued Bonus shares converted from Other Subtotalpublic reserve
Total shares 1152535254.00 1152535254.00
Other explanation:
187深圳市深粮控股股份有限公司2023年度报告全文
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
Outstanding financial instrument Period-beginning Current increased Current decreased Period-endQuantity Book value Quantity Book value Quantity Book value Quantity Book value
Total 0.00 0.00
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) 1250743274.79 1117457.77 1251860732.56
Other capital reserve 8896381.86 8896381.86
Total 1259639656.65 1117457.77 1260757114.42
Other instructions including changes in the current period reasons for changes:
The capital premium rose by 1117457.77 yuan which arose form the minority shareholders of贝格厨房。
56. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Total 0.00 0.00
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
Item Opening before income in previous income in previous
Less : Attributable Attributable to Ending
balance income period and carried period and carried income to parent minority balance
tax in the forward to gains and forward to retained tax company shareholders
period losses in current earnings in current expense after tax after tax
period period
Total of other
comprehensive 0.00 0.00
income
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
188深圳市深粮控股股份有限公司2023年度报告全文
Item Opening balance Current increased Current decreased Ending balance
Work safety fee 220301.70 1981520.98 1459854.49 741968.19
Total 220301.70 1981520.98 1459854.49 741968.19
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 439624164.67 43479201.71 483103366.38
Total 439624164.67 43479201.71 483103366.38
Other explanation including changes in current period and reasons for changes:
60. Retained profit
In RMB
Item Current period Last period
Retained profit at the end of the previous year
before adjustment 1910954084.79 1812541701.27
Total adjustment amount of retained profit at the
beginning of the year(adjustment increase 148597.59 -21202.17
+/adjustment decrease-)
Retained profit at the beginning of the year after
adjustment 1911102682.38 1812520499.10
Add: net profit attributable to shareholder of parent
company 347824733.68 420764671.03
Less: withdrawal of legal surplus reserve 43479201.71 34048674.25
Common stock dividends payable 288133813.50 288133813.50
Retained profit at period-end 1927314400.85 1911102682.38
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 0.00 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
0.00 yuan.
5) Due to other adjustments the retained profits at the beginning of the period was affected by 0.00 yuan.
61. Operating income and operating cost
In RMB
Item Current period Last period
Income Cost Income Cost
Main business 6189691606.18 5228738901.98 8310797045.00 7169707326.38
Other business 313750.64 106899.36 1926013.19 3151108.47
Total 6190005356.82 5228845801.34 8312723058.19 7172858434.85
Is the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
189深圳市深粮控股股份有限公司2023年度报告全文
□Yes □No
Information relating to revenue:
In RMB
Branch 1 Branch 2 Total
Category Operating Operating Operating Operating Operating Operating Operating Operating
income cost income cost income cost income cost
Business
types
Including:
Classificati
on by
business
area
Including:
Market or
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 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
190深圳市深粮控股股份有限公司2023年度报告全文
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 corresponding revenue amount for unfulfilled or
unfulfilled performance obligations is 86566253.73 yuan. The whole amount 86566253.73 yuan is expected to be recognized
in within 1 year.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 1383698.15 1881093.08
Education surcharge 1051442.01 983830.68
Property tax 11861483.21 9907629.09
Use tax of land 1957226.62 2237912.97
Vehicle and vessel use tax 19917.36 25735.60
Stamp duty 2629698.94 2871200.49
Other 6972.53 29074.09
Total 18910438.82 17936476.00
Other explanation:
63.Administration expenses
In RMB
Item Current period Last period
Labor and social security benefits 132104257.58 199977753.70
Depreciation and amortization of long-
term assets 43251708.23 42215859.45
Office expenses 5977040.35 10899484.39
Intermediary agency fee 4694613.15 5321856.45
Travelling expense 2134383.20 1153576.40
Communication expense 1738151.72 1656208.69
Vehicle usage fee 1131371.09 1194282.41
Business hospitality 969999.94 654449.12
Relocation and shutdown costs 760742.03 535740.91
Rental 456480.17 88776.37
Repair cost 454215.27 310474.85
Low-value consumable 25476.09 74796.32
Other 19281118.82 16474381.06
Total 212979557.64 280557640.12
Other explanation:
64.Sales expense
In RMB
Item Current period Last period
191深圳市深粮控股股份有限公司2023年度报告全文
Labor and social security benefits 114823759.85 105464733.79
Depreciation and amortization of long-
term assets 11669044.05 13019789.92
Office expenses 10373217.31 10615703.94
Sales service fee 6944356.95 8920055.76
Storage and loading/unloading fees 5186133.78 8426439.83
Port terminal fees 3787085.61 4914370.42
Travel expenses 3007934.57 1371204.88
Business hospitality 1505531.70 1364065.19
Rental 1175659.26 1113437.27
Advertising expenses 1100020.83 1158015.36
Property insurance premium 939751.88 770044.57
Low value consumables and other loss
899870.586199952.31
expenses
Logistics and transportation costs 551895.13 587885.79
Sales commission 75437.50 328322.18
Vehicle use fee 260081.34 268962.67
Other 14130055.64 11237632.82
Total 176429835.98 175760616.70
Other explanation:
65.R&D expenses
In RMB
Item Current period Last period
Labor and social security benefits 12149800.39 12682987.40
Depreciation cost 3174111.67 2581188.36
Material consumption 2895753.44 97815.85
Travel expense 650799.60 365098.43
Maintenance and inspection fee 604082.75 673414.26
Office expense 278409.10 92438.24
Intermediary fees 117726.42 113250.95
Vehicle usage expense 90554.88 26429.50
Other 84126.43 1916430.05
Total 20045364.68 18549053.04
Other explanation:
66.Financial expense
In RMB
Item Current period Last period
Interest expenses 39968255.33 52421870.87
Including: interest expenses of lease
liability
Less: Interest income -959189.54 -895316.44
Exchange gains or loss 286319.71 -971444.48
Handling fee and others 767351.77 801938.60
Total 40062737.27 51357048.55
Other explanation:
67.Other income
In RMB
192深圳市深粮控股股份有限公司2023年度报告全文
Sources Current period Last period
Government grant 14663529.88 8775672.58
Input tax deduction 7890252.79 723361.58
Handling fees for withholding personal
income tax 398387.36 296808.43
Direct reduction of value-added tax 37024.53
Other 16988.26 6917.25
Total 22969158.29 9839784.37
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 307033.09
Tradable financial liabilities 288486.18 -288486.18
Total 182701.67 18546.91
Other explanation:
70.Investment income
In RMB
Item Current period Last period
Long-term equity investment income
measured by equity 3332391.85 -2813908.86
Investment income from disposal of long-
term equity investment -3412304.80
Other 6622492.60 8455442.20
Total 9954884.45 2229228.54
Other explanation:
71.Credit impairment loss
In RMB
Item Current period Last period
Loss of bad debt of other account
receivable -3599093.34 215868.78
Loss of bad debt of account receivable 426721.19 -1572712.37
Total -3172372.15 -1356843.59
Other explanation:
72.Asset impairment loss
In RMB
Item Current period Last period
193深圳市深粮控股股份有限公司2023年度报告全文
I. Inventory depreciation and contract
performance cost impairment loss -104336237.13 -138029247.57
IV. Impairment losses on fixed assets -4478118.30
Total -104336237.13 -142507365.87
Other explanation:
73.Income from assets disposal
In RMB
Sources Current period Last period
Gains/losses from disposal of non-current
assets 2394378.42 -25417.69
74.Non-operation income
In RMB
Amount included in the
Item Current period Last period current non-recurring
gains/losses
Government grants 1100000.00
Liquidated damages
1457192.355636491.911457192.35
compensation income
No payment required 827455.51 827455.51
Gains from damage and
51232.6451232.64
scrapping of non-current assets
Gains from inventory surplus 6062.93 27924.91 6062.93
Other 103784.80 1230595.15 103784.80
Total 2445728.23 7995011.97 2445728.23
Other explanation:
75.Non-operating expenditure
In RMB
Amount included in current
Item Current period Last period
non-recurring gains and losses
External donations 4777.87
Penalty expenses (and
liquidated damages) 1289772.38 39883.09 1289772.38
Loss of scrap from non-current
105910.3233127.57105910.32
assets
Compensation 2000.00 503125.60 2000.00
Inventory loss 40474.63
Other 403290.79 364482.72 403290.79
Total 1800973.49 985871.48 1800973.49
Other explanation:
76.Income tax expense
(1)Income tax expense
In RMB
194深圳市深粮控股股份有限公司2023年度报告全文
Item Current period Last period
Current income tax expenses 87781940.01 52809277.10
Deferred income tax expenses -13045542.44 -367082.99
Total 74736397.57 52442194.11
(2)Adjustment process of accounting profit and income tax expenses
In RMB
Item Current period
Total profit 421368889.38
Income tax expenses calculated by statutory/applicable tax rate 105342222.34
Impact from different tax rate applicable with subsidiaries -516428.85
Effect of adjusting income tax in the previous period 9778145.59
Impact of non taxable income -97910019.74
Impact of cost expenses and losses unable to be deducted 48722879.00
Impact of the use of a previously unrecognized deferred income
tax asset on deductible losses -12257555.65
Impact of unrecognized deferred income tax assets in current
period on deductible temporary differences or deductible losses 25099493.66
Gains/losses of joint ventures and associated enterprises
-118287.49
measured with equity method
Tax influence of additional deduction of R&D expenditure
-676831.08
(filled in with the sign of “-”)
Other -2727220.21
Income tax expenses 74736397.57
Other explanation:
77. Other comprehensive income
78. Items of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
Item Current period Last period
Intercourse funds and deposit 262331327.58 384721628.52
Government grants 13485589.19 2723273.17
Interest income 959189.53 895316.44
Other 7408191.12 11785691.59
Total 284184297.42 400125909.72
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 160303524.38 421829887.01
Operating daily expenses 133073062.03 97426875.34
Other 3693027.65 795248.00
Total 297069614.06 520052010.35
Note of cash paid with other operating activities concerned:
195深圳市深粮控股股份有限公司2023年度报告全文
(2) Cash with other investment activities concerned
Cash received with other investment activities concerned
In RMB
Item Current period Last period
External lending recovered 726511.34
Total 726511.34 0.00
Significant cash received with other investment activities concerned:
In RMB
Item Current period Last period
Financial products 1558000000.00 1191460000.00
Large deposit certificate 90000000.00
Total 1558000000.00 1281460000.00
Explanation on cash received with other investment activities concerned：
Cash paid with other investment activities concerned
In RMB
Item Current period Last period
Loss of control of subsidiaries 404.68
Total 0.00 404.68
Significant cash paid with investment activities
In RMB
Item Current period Last period
Financial products 1500000000.00 1026460000.00
Large deposit certificate 43000000.00 80000000.00
Total 1543000000.00 1106460000.00
Cash paid with other operating activities concerned
(3)Cash with financing activities concerned
Cash received with financing activities concerned
In RMB
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 20079954.38 24121307.93
Payment of minority shareholder equity 11106589.90
Purchase of minority shareholder equity 3344850.00
Other 363846.74
Total 34531394.28 24485154.67
Explanation on cash paid with other financing activities concerned:
Changes in liabilities arising from financing activities
□Applicable □Not applicable
196深圳市深粮控股股份有限公司2023年度报告全文
In RMB
Current increased Current decreased
Item Opening balance Non-cash Non-cash Ending balance
Cash change Cash change
change change
Short-term
borrow and
1192211087.371930787809.131875334898.93824533.971246839463.60
held-for-sale
liabilities
Lease
82207570.1120079954.381577190.2360550425.50
liabilities
Total 1274418657.48 1930787809.13 1895414853.31 2401724.20 1307389889.10
(4)Cash flow listed at net amount
Basis for being listed at net
Item Relevant facts Financial impact
amount
(5) Significant activities and financial impacts that do not involve current cash inflow and outflow but
affect the financial condition of the enterprise or may affect the cash flow of the enterprise in the future
79.Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB
Supplementary information 本期金额 上期金额
1. Net profit adjusted to cash flow of
operation activities:
Net profit 346632491.81 418468667.98
Add: Impairment provision for assets 107508609.28 143864209.46
Depreciation of fixed assets
consumption of oil assets and depreciation 111231937.94 109120940.75
of productive biology assets
Depreciation of right-of-use
assets 22328053.93 21759266.15
Amortization of intangible assets 34397837.54 29934283.78
Amortization of long-term
pending expenses 8660628.62 10186577.64
Loss from disposal of fixed
assets intangible assets and other long- -2394378.42 25417.69
term assets (income is listed with “-”)
Losses on scrapping of fixedassets (income is listed with “-“) 54677.68 33127.57Loss from change of fair value(income is listed with “-“) -182701.67 -18546.91Financial expenses (income is
listed with “-”) 39973327.68 51450426.39
Investment loss (income is listed
with “-”) -9954884.45 -2229228.54
Decrease of deferred income tax
assets (increase is listed with “-”) -15049702.87 288959.12
Increase of deferred income tax
asset( (increase is listed with “-”) 2034884.00 -656042.11
Decrease of inventory (increase 27253849.60 -276452543.28
197深圳市深粮控股股份有限公司2023年度报告全文
is listed with “-”)
Decrease of operating receivable
accounts (increase is listed with “-”) 92202173.53 136294792.53
Increase of operating payable
accounts (decrease is listed with “-”) -178880148.01 -110181541.58
Other
Net cash flow arising from
operating activities 585816656.19 531888766.64
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 7645189.94
3. Net change of cash and cash equivalents:
Ending balance of cash 230919769.29 53095469.26
Less: beginning balance of cash 53095469.26 49370080.20
Add: ending balance of cash
equivalents 1469717.13
Less: beginning balance of cash
equivalents
Net increasing of cash and cash
equivalents 179294017.16 3725389.06
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including:
Including
Including:
Other explanation:
(3)Net cash received by disposing subsidiary in the Period
In RMB金额
Including:
Including
Including:
Other explanation:
(4) Component of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 230919769.29 53095469.26
Including: Cash on hand 10106.10 69686.00
Bank deposit available for
payment at any time 230835667.22 52829469.15
Other monetary fund available
for payment at any time 73995.97 196314.11
II. Cash equivalent 1469717.13
Held-for-sale assets - monetary funds 1469717.13
198深圳市深粮控股股份有限公司2023年度报告全文
III. Ending balance of cash and cash
232389486.4253095469.26
equivalent
(5)Items with restricted application scope still belong to cash and cash equivalents
In RMB
Reason for still belonging to
Item Current amount Last amount
cash and cash equivalents
(6)Monetary funds not belonging to cash and cash equivalent
In RMB
Reason for not belonging to
Item Current amount Last amount
cash and cash equivalents
Bank deposit 2973129.00 Lawsuit freezing
Guarantee deposit credit
Other monetary funds 2491708.31 1008301.74
deposit etc
Total 5464837.31 1008301.74
Other explanation:
(7)Explanation on other significant activities
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” items that have been adjusted to the ending balance of the previous year
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Item Ending foreign currency balance Convert rate Ending RMB balance converted
Monetary fund 791611.15
Including: USD 146180.59 7.0827 617258.15
EURO
HKD 192395.89 0.90622 174353.00
Account receivable 2302399.32
Including: USD 286493.94 7.0827 2029150.63
EURO
HKD 301525.78 0.9062 273248.69
Held-for-sale assets -
monetary funds 1069467.05
Including: USD 144988.42 7.0827 1026909.48
EURO 5415.00 7.8592 42557.57
HKD
Held-for-sale assets - account
receivable 1742835.46
Including: USD 246069.36 7.0827 1742835.46
199深圳市深粮控股股份有限公司2023年度报告全文
Other explanation:
(2) Explanation on foreign operational entity including as for the major foreign operational entity
disclosed main operation place book-keeping currency and basis for selection; if the book-keeping
currency is changed explain reasons
□ Applicable □ Not applicable
82.Lease
(1) The company as leaser
□Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable□Not applicable
Simplified handling of short-term leasing or leasing costs for low value assets
□Applicable□Not applicable
Situations involving after-sales leaseback transactions
(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. 89413344.39
Total 89413344.39
Financing lease with the company as lessor
□Applicable□Not applicable
Annual undiscounted lease payments for the next five years
□Applicable□Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
(3)Recognize gains/losses from financing lease as producer or dealer
□Applicable□Not applicable
83.Others
VIII. R&D expenditure
In RMB
200深圳市深粮控股股份有限公司2023年度报告全文
Item Current period Last period
Labor and social security benefits 12836117.77 13911452.60
Depreciation and amortization expenses 3892146.29 3372100.40
Material consumption 6302600.55 1562447.84
Maintenance and testing fees 760541.10 796870.45
Travel expenses 654453.06 446155.78
Office expenses 280844.00 95913.15
Intermediary fees 117726.42 113250.95
Car expenses 90554.88 26429.50
Other 109783.47 1938952.59
Total 25044767.54 22263573.26
Among them: Expensed R&D
expenditure 20045364.68 18549053.04
Capitalized R&D expenses 4999402.86 3714520.22
1.R&D items that meet capitalization conditions
In RMB
Current increase Current decrease
Beginning Carried
Item Internal Recognized
balance forward to Endingdevelopme as
Other current balance
nt intangible
gains/losse
expenditure assets
s
R&D
25044767.4999402.820045364.
capital
54668
items
25044767.4999402.820045364.
Total
54668
Major capitalized R&D items
Expected way of Specific basis for
Estimated Starting point of
Items R&D progress generating starting
completion time capitalization
economic benefits capitalization
Impairment reserve for R&D expenditure
In RMB
Item Beginning balance Current increase Current decrease Ending balance Impairment test
2. Important outsourced projects under research
Expected way of generating economic The criteria and specific basis for
Item
benefits determining capitalization or expensing
Other explanation:
201深圳市深粮控股股份有限公司2023年度报告全文
IX.Changes in consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control
In RMB
Standard to Income of Net profit
Time point Cost of Ratio of Acquired determine acquiree of acquiree
Acquiree for equity equity equity way Equity Purchasing the from from
obtained obtained obtained obtained dateway purchasing
purchasing purchasing
date date to date toperiod-end 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
Portion of goodwill/merger cost less than the shares of fair
value of identifiable net assets acquired
Explanation of the method for determining the fair value of merger costs contingent considerations and their changes:
Main reasons for the formation of large goodwill
Other explanation:
(3) Identifiable assets and liabilities on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Assets:
Monetary funds
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Deferred tax liabilities
Net assets
Less: Minority interests
202深圳市深粮控股股份有限公司2023年度报告全文
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Contingent liabilities assumed by the acquiree in a business merger:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period
□Yes □No
(5) On purchasing date or period-end of the combination combination consideration or fair value of identifiable assets and
liability for the acquiree are unable to confirm rationally
(6) Other explanation
2. Business combination under the same control
(1) Business combination under the same control in the Period
In RMB
Income of Net profit
the of the Income of Net profit
Equity Basis of Standard to combined combined the of the
ratio combined determine party from party from combined combined
Acquiree obtained in under the Combinati the period- period-
combinatio same on date combinatio begin of begin of
party party
during the during the
n control n date combinatio combination to the n to the comparison comparison
combinatio combinatio period period
n date n date
Other explanation:
(2)Combination cost
In RMB
Consolidation cost
--Cash
-- 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 combined party on combination date
In RMB
Consolidation date Ending balance of last period
Assets:
Monetary funds
203深圳市深粮控股股份有限公司2023年度报告全文
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Net assets
Less: Minority interests
Net assets acquired
Contingent liability of the combined party assumed by the Company during combination:
Other explanation:
3. Reverse purchase
Basic transaction information basis of counter purchase whether making up business due to the assets and liability reserved by
listed company and basis determination of combination cost amount and calculation on adjusted equity by equity transaction:
4. Disposal of subsidiary
Is there any situation where a single disposal of investment in a subsidiary results in loss of control
□Yes □No
Is there any situation where investments in subsidiaries are disposed by steps through multiple transactions and control is lost in
the current period
□Yes □No
5. Other reasons for changes in consolidation range
Consolidation scope changes caused by other reasons (eg establish new subsidiaries liquidate subsidiaries etc.) and the related
circumstances:
6.Other
X. Equity in other entities
1. Equity in subsidiaries
(1) Membership of enterprise group
Subsidiary Registered Main place of Registration Business nature shareholding ratio ratio Acquisitioncapital operation place Directly Indirectly way
SZCG 153000000 Shenzhen
Combine under
0.00 City
Shenzhen City Grain & oil trading 100.00% the same
control
Hualian Grain & 100000000. Shenzhen Combine under
Oil City Shenzhen City Grain & oil trading 100.00% the same00 control
204深圳市深粮控股股份有限公司2023年度报告全文
30000000.0 Shenzhen Combine underShenzhen Flour City Shenzhen City Flour processing 100.00% the same0 control
Shenliang
Quality 8000000.00 Shenzhen
Combine under
Shenzhen City Inspection 100.00% the same
Inspection City control
Hainan Grain 10000000.0 Combine under
and Oil Haikou City Haikou City Feed production 100.00% the same0 control
Doximi 10000000.0 Shenzhen
Combine under
City Shenzhen City E-commerce 100.00% the same0 control
Sales and processing of Combine under
Big Kitchen 10000000.0 ShenzhenCity Shenzhen City grainoil and relevant 70.00% the same0 products control
Combine under
Yingkou Storage 1000000.00 Yingkou City Yingkou City Storage 100.00% the same
control
Cold Chain 10000000.0 Shenzhen Combine under
Logistic City Shenzhen City
On-line operation of fresh
food 100.00% the same0 control
Combine under
Shenliang Shenzhen Shenzhen City Property development and9500000.00 City 100.00% the sameProperty management
control
International 221000000. Dongguan Dongguan Port operation food Combine under
Food City City production 100.00% the same00 control
Dongguan Grain 100000000. Dongguan Dongguan Combine under
and Oil City City Food production 100.00% the same00 control
Dongguan 298000000. Dongguan Dongguan Combine under
Logistics City City Storage logistics 49.00% 51.00% the same00 control
Shuangyashan 100000000. Shuangyasha Shuangyashan
Construction of food base Combine under
n City City and development of related 51.00% the same00 complementary facilities control
Shenliang 30000000.0 Shenzhen
Hongjun City Shenzhen City Catering 51.00% Establishment0
Dongguan 10000000.0 Dongguan Dongguan
Hualian 0 City City
Grain and oil trade 100.00% Establishment
Shenliang
Property 5000000.00 ShenzhenCity Shenzhen City Property management 100.00% EstablishmentManagement
Shenbao 207451300. Shenzhen
Huacheng City Shenzhen City Manufacturing 100.00% Establishment00
Wuyuan Ju Fang 290000000.Yong Shangrao City Shangrao City Manufacturing 100.00% Establishment00
Huizhou 60000000.0
Shenbao Huizhou City Huizhou City Comprehensive 100.00% Establishment0
Shenbao 50000000.0 Shenzhen
Investment City Shenzhen City Investment management 100.00% Establishment0
Shenbao Tea 15000000.0 Shenzhen
Culture City Shenzhen City Commercial trade 100.00% Establishment0
50000000.0 Shenzhen
Shenliang Hongli Shenzhen City Gain and oil wholesale 100.00% Establishment
0 City
Ju Fang Yong 175000000. Hangzhou
Holding City Hangzhou City Comprehensive 100.00% Establishment00
Fuhaitang Hangzhou
Catering 1000000.00 City Hangzhou City Catering industry 100.00% Establishment
Fuhaitang
Ecology 2000000.00 Hangzhou Tea planting production
Business
Technology City
Hangzhou City and sales 100.00% combinationnot under the
205深圳市深粮控股股份有限公司2023年度报告全文
same control
Shenbao Rock 20700000.0 Wuyishan
Tea City Wuyishan City Manufacturing 100.00% Establishment0
Pu’er Tea Supply 20000000.0
Chain Pu’er City Pu’er City Wholesale business 100.00% Establishment0
Pu’er Tea 50000000.0
Trading Center Pu’er City Pu’er City Service industry 55.00% Establishment0
30150000.0
Shenliang Food Huizhou City Shenzhen City Manufacturing 100.00% Establishment
0
Huizhou
5000000.00 Huizhou City Huizhou City Wholesale business 100.00% Establishment
Shenliang Food
10000000.0 Shenzhen Platform construction
Zhenpin Market Shenzhen City 51.00% Establishment
0 City promotion and operation
Shenbao Industry
& Trade 5500000.00 Huizhou City Shenzhen City Wholesale business 100.00% Establishment
Wuhan Jiacheng 11380000.0
Combine not
Wuhan City Wuhan City Food production 51.00% under the same
0 control
30000000.0 Combine notHubei Jiacheng Wuhan City Wuhan City Food production 51.00% under the same
0 control
Combine not
Wuhan Hongqu 8000000.00 Wuhan City Wuhan City Food production 51.00% under the same
control
Macheng 19000000.0 Combine not
Jingtian Macheng City Macheng City Food production 51.00% under the same0 control
Explanation on shareholding ratio ratio in subsidiary different from ratio of voting right:
Explanation on basis for controlling the invested entity with half or below voting rights held and without controlling invested entity
but with over half and over voting rights:
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 ratio Gains/losses Dividend announced to
Subsidiary of minority attributable to minority distribute for minority Ending equity of
shareholders in the Period in the Period minority
Shuangyashan 49.00% 1372344.93 29106475.08
Explanation on the situation where the shareholding ratio of minority shareholders is different from the voting right ratio of minority
shareholders:
Other explanation:
(3) Main financial information of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsi Curre Non
diary nt current Total
Current Non Total Curre Non Total Current Non Total
assets assets assets
liabiliti current liabilit nt current assets liabiliti current liabilites liabilities ies assets assets es liabilities ies
Shua
ngys 8578 152130 23791 17851 17851 8972 154712 16368 10708 10708
han 1145. 471.73 1617. 0647.6 0647. 258.9 400.25 4659. 4393.5 4393.
206深圳市深粮控股股份有限公司2023年度报告全文
4518262116353
In RMB
Current Period Last Period
Subsidi
ary Operating Net
Total Cash flow from Operating Net Total
revenue profit comprehensive operation activity revenue profi comprehensive
Cash flow from
income t income operation activity
764
Shuang 2262401 2800 2888564
yashan 2800703.93 6384930.18 15.2 76415.27 10319058.6393.61 703.93 84.33
7
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 changes 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 3344850.00
--Cash 3344850.00
--Fair value of non-cash assets
Purchase cost/total disposal consideration 3344850.00
Less: Subsidiary’s share of net assets calculated based on the
proportion of acquired/disposed equity 2227392.23
Difference 1117457.77
Including: Adjust capital reserve 1117457.77
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 Registrationoperation place Business nature
investment in
ated enterprise Directly Indirectly joint ventureand associated
enterprise
Zhuhai
Hengxing Feed Zhuhai Zhuhai Aquatic fee and 40.00% Equity method
Industrial Co. animal fee
207深圳市深粮控股股份有限公司2023年度报告全文
Ltd.Shenliang
Intelligent
Wulian Equity
Investment Equity
Fund Shenzhen Shenzhen investment;investment 49.02% Equity method(Shenzhen)
Partnership consultant
Enterprise
(Limited)
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 equivalent
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 by
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of
internal trading
-- Other
Book value of equity
investment in joint
venture
Fair value of the equity
investment in joint
ventures with public
offers concerned
Operating income
Financial expenses
Income tax expenses
Net profit
Net profit of
discontinuing
operation
Other comprehensive
income
208深圳市深粮控股股份有限公司2023年度报告全文
Total comprehensive
income
Dividends received
from joint venture in
the year
Other explanation
(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 Zhuhai Hengxing Feed Wulian Equity
Industrial Co. Ltd. Investment Fund Industrial Co. Ltd. Investment Fund(Shenzhen) Partnership (Shenzhen) Partnership
Enterprise (Limited) Enterprise (Limited)
Current assets 206533219.54 20506045.15 155902973.82 20190370.67
Non-current assets 22214230.53 34910923.94 23155027.49 34301885.64
Total assets 228747450.07 55416969.09 179058001.31 54492256.31
Current liabilities 115358256.12 170000.00 103635109.17
Non-current liabilities 29663266.41 353858.37
Total liabilities 145021522.53 170000.00 103988967.54
Net asset 83725927.54 55246969.09 75069033.77 54492256.31
Minority interests
Equity attributable to
shareholder of parent 83725927.54 55246969.09 75069033.77 54492256.31
company
Share of net assets
measured by 33490371.02 27082064.25 30027613.51 26712104.04
shareholding
Adjustment 162764.46 -174.47 187132.78 171024.78
--Goodwill
--Unrealized profit of
internal trading
-- Other 162764.46 -174.47 187132.78 171024.78
Book value of equity
investment in 33653135.48 27081889.78 30214746.29 26883128.82
associated enterprise
Fair value of the equity
investment of
associated enterprise
with public offers
concerned
Operating income 501688075.92 648380399.95
Net profit 8657035.43 754712.78 -3114520.96 -2070080.67
Net profit of
discontinuing operation
Other comprehensive
income
Total comprehensive
income 8657035.43 754712.78 -3114520.96 -2070080.67
Dividends received
from associated
enterprise in the year
Other explanation
209深圳市深粮控股股份有限公司2023年度报告全文
(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 based on shareholding ratio ratio
Associated enterprise:
Total book value of investment 13273901.22 13578659.52
Total amount calculated in terms of
shareholding ratio ratio
--Net profit -304756.85 -371088.05
--Total comprehensive income -304756.85 -371088.05
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 Cumulative derecognized recognized in the Period (or Cumulative derecognized
enterprise losses net profit enjoyed in the losses at period-end
Period)
Changzhou Shenbao Chacang
E-business Co. ltd. 9671616.17 928420.33 10600036.50
Other explanation
(7) Unconfirmed commitment related to joint venture investment
(8) Intangible liabilities related to joint venture or associated enterprise investment
4. Major joint operation
Main place of Shareholding ratio/ shares enjoyedName operation Registration place Business nature 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
210深圳市深粮控股股份有限公司2023年度报告全文
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
Amount
Current Other
booked into Amount carried
Accounting increase in changes in Asset/income
Opening balance non-business forward to other Ending balance
title government current related
income in income
grant period
current period
Deferred 3079323.
87077137.27 8914774.39 10092715.08 82819873.24 Asset related
income 34
3. Government grant booked into current gains/losses
□Applicable □Not applicable
In RMB
Accounting title Current period Last period
Other revenue 8775672.58 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 our 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
211深圳市深粮控股股份有限公司2023年度报告全文
department of our 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 our 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 our company.Our 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.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 our company’s accounts receivable are customers distributed across different industries and regions. Our 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 our company is exposed to is the carrying amount of each financial asset on the balance sheet.Our company has not provided any other guarantees that may expose our company to credit risk.Among the accounts receivable of our company the accounts receivable of the top five customers account for 37.35% of the total
accounts receivable of our company (2022: 36.54%); Among the other receivables of our company the other receivables of the top
five companies with outstanding amounts account for 41.44% of the total other receivables of our company (2022: 40.81%).On the balance sheet date the book value of our company’s debt investments is listed as follows according to the items in the
financial statements:
Item Current ending balance Last ending balance
Tradable financial assets 1122347.85 46676652.91
Other current assets 30226849.32
Total 31349197.17 46676652.91
Liquidity risk
212深圳市深粮控股股份有限公司2023年度报告全文
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 our 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.Our 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 our company was 9118765500.00 yuan (as of the end of last year: 95093200.00 yuan).At the end of the 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 (unit: 10000 yuan):
Current ending balance
Item
Within 1 year 1-3 years Over 3 years Total
Liabilities:
Short-term borrowing 122346.24 122346.24
Account payable 33616.52 33616.52
Other payable 27768.76 27768.76
Liabilities held for sale 5789.03 5789.03
Non-current liabilities maturing within one year 2280.55 2280.55
Leasing liabilities 3692.57 81.93 3774.50
Total of financial liabilities or contingent
liabilities 191801.10 3692.57 81.93 195575.60
At the end of last year 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 (unit: 10000 yuan):
Last ending balance
Item
Within 1 year 1-3 years Over 3 years Total
Liabilities:
Short-term borrowing 119221.11 119221.11
Trading financial liabilities 28.85 28.85
Account payable 39014.90 39014.90
Other payable 29686.03 29686.03
Liabilities held for sale 2177.07 2177.07
Non-current liabilities maturing within one year 4413.65 1993.76 6407.41
Total of financial liabilities or contingent
liabilities 190421.32 4413.65 1993.76 196828.73
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.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
213深圳市深粮控股股份有限公司2023年度报告全文
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
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 our company are as follows (unit: 10000 yuan):
Item Current amount Last amount
Financial instrument with fixed rate
Financial liability 124683.95 108490.36
Including: short-term borrowing 122346.25 108490.36
Liabilities held for sale 2337.69
Total 124683.95 108490.36
Financial instrument with floating rate
Financial liabilities 10730.75
Including: short-term borrowing 10730.75
Total 10730.75
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 company’s main operations are located within China and our main business is settled In RMB. However the recognized foreign
currency assets and liabilities of the company as well as future foreign currency transactions (the valuation currencies for foreign
currency assets and liabilities and foreign currency transactions are mainly US dollars and euros) still face foreign exchange risks.At the end of the period the amount of foreign currency financial assets and foreign currency financial liabilities held by the
company converted into RMB is listed as follows (unit: RMB 10000):
Foreign currency liabilities Foreign currency assets
Item
Ending balance Ending balance of Ending balance oflast period Ending balance last period
USD 1371323.19 1275961.73 3771986.09 4601755.33
214深圳市深粮控股股份有限公司2023年度报告全文
Foreign currency liabilities Foreign currency assets
Item
Ending balance Ending balance of Ending balance oflast period Ending balance last period
ERO 11042.18
Hong Kong Dollar 273248.69 165933.70
Total 1382365.37 1275961.73 4045234.78 4767689.03
The company closely monitors the impact of exchange rate fluctuations on our exchange rate risk. The company has not taken any
measures to mitigate exchange rate risks at present. But the management is responsible for monitoring exchange rate risk and will
consider hedging significant exchange rate risks when necessary.
(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
period the company’s asset liability ratio was 34.07% (35.06% at the end of the previous year).
2.Hedge
(1) Risk management for hedge business
□Applicable□Not applicable
(2) The company conducts eligible hedging business and applies 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 conducts hedging business for risk management. It is expected to achieve risk management goals but has
not applied hedging accounting
□Applicable□Not applicable
3.Financial assets
215深圳市深粮控股股份有限公司2023年度报告全文
(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: Nil
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item Ending fair valueFirst-order Second-order Third-order Total
I. Sustaining measured
by fair value 1122347.85 30226849.32 31349197.17
(i) Tradable financial
assets 1122347.85 1122347.85
1.Financial assets
measured by fair value
and with variation 1122347.85 1122347.85
reckoned into current
gains/losses
(2)Equity instrument
investment 30226849.32 30226849.32
2.Financial assets which
are designated to be
measured by fair value
and with variation 30226849.32 30226849.32
reckoned into current
gains/losses
(1) Investment in debt
instrument 57500.00 57500.00
(iii) Investment in other
equity instruments 1122347.85 30226849.32 57500.00 31406697.17
Total assets
continuously measured -- -- -- --
at fair value
II. Non-sustaining
measured by fair value -- -- -- --
216深圳市深粮控股股份有限公司2023年度报告全文
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-
order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on second-order
Content Ending fair value Valuation technology Unobservable input value
Debt instrument financing 30226849.32 Bank quotation Issuance interest rate
4.Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on third-order
Content Ending fair value Valuation technology Unobservable input value
Non-listed equity investment 57500.00 Market method Investment cost
5.Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
6. Sustaining items measured by fair value as for the conversion between at all levels reasons for
conversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liabilities not measured by fair value
9. Other
XIV.Related party and related transactions
1. Parent company
Ratio of Ratio of voting
Registrat Registere
Parent company Business nature shareholding on the right on the
ion place d capital
Company Company
Investing in industry development
Shenzhen Food Shenzhe 5000
Materials Group operation and management of the ownn million 63.79% 72.02%Co. Ltd property 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:
217深圳市深粮控股股份有限公司2023年度报告全文
2. Subsidiaries of the Company
For more details of subsidiaries of the Company please refer to “Note X(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 X(3)”.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
Holding subsidiary of parent company
Co. Ltd.Shenzhen Higreen International Agricultural Products Logistic
Holding subsidiary of parent company
Management Co. Ltd
Chengdu Agricultural Products Center Wholesale Market Co.Holding subsidiary of parent company
Ltd.Huizhou Higreen Agricultural Products International Logistics
Holding subsidiary of parent company
Co. Ltd.Shenzhen Medical Materials Co. Ltd. Holding subsidiary of parent company
Shenzhen Shennong Land Co. Ltd. Holding subsidiary of parent company
Subsidiaries of the Company’s shareholders controlled by the
Shenzhen Shennong Kitchen Co. Ltd
ultimate controlling party
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Subsidiaries of the Company’s shareholders controlled by the
Ltd ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Zhanjiang Haitian Aquatic Feed Co. Ltd
ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Shenzhen Higreen Real Estate Co. Ltd
ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Shenzhen Southern Agricultural Products Logistics Co. Ltd
ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Shenzhen Agricultural Products Small Loan Co. Ltd
ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Shenzhen Agricultural Products E-commerce Co. Ltd
ultimate controlling party
Subsidiaries of the Company’s shareholders controlled by the
Zhanjiang Haitian Aquatic Feed Co. Ltd
ultimate controlling party
Shenzhen Shenliang Cold Transport Co. Ltd. Holding subsidiaries of the Company’s associated enterprise
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
218深圳市深粮控股股份有限公司2023年度报告全文
Liu Haifeng Independent director
Zheng Shengqiao Employee supervisor
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 Warehousing
Shenliang Cold services/Transportation
Transport Co. services 297749.51 297749.51 N 1954385.49
Ltd.Shenzhen Information software
Shenyuan Data development 16241326.17 16241326.17 N 16158003.35
Tech. Co. Ltd
Shenzhen Warehousing service
Municipal
People’s
Government State-
owned Assets 23510737.60 23510737.60 N 72665398.00
Supervision &
Administration
Commission
Shenzhen Procurement of goods
Shennong Kitchen 2270681.12 2270681.12 N 2306054.19
Co. Ltd
Goods sold/labor service providing
In RMB
Related party Content of related transactioncontent Current period Last period
Shenzhen Agricultural Power Grain and oil sales asset
management tea sales 3070581.93 3429685.58Group Co. Ltd.Shenzhen Zhenchu Supply Grain and oil sales and
Chain Co. Ltd. transportation services
1769540.0522644698.63
Shenzhen Shenliang Cold Grain sales warehousing
Transport Co. Ltd. services tea sales
1006521.8673053.97
Shenzhen Shennong Kitchen Grain and oil sales tea sales
767892.601227568.04
Co. Ltd
Zhanjiang Changshan Property management services
(Shenzhen) Ecological 90650.80 183595.18
Aquaculture Co. Ltd
219深圳市深粮控股股份有限公司2023年度报告全文
Shenzhen Shenyuan Data Grain and oil sales
42503.1456532.51
Tech. Co. Ltd
Zhanjiang Haitian Aquatic Property management services
33934.65
Feed Co. Ltd
Shenzhen Agricultural Tea sales grain and oil sales
26782.2943610.35
Products Group Co. Ltd
Shenzhen Duoxi Equity Tea sales and property
Investment Fund Management management services 20754.69 38534.00
Co. Ltd.Guangxi Higreen Agricultural Grain and oil sales
Products International 16481.42
Logistics Co. Ltd.Shenzhen Higreen Grain and oil sales
International Agricultural
12361.06
Products Logistic
Management Co. Ltd
Shenzhen Higreen Real Estate Grain and oil sales
5061.14
Co. Ltd
Shenzhen Southern Grain and oil sales
Agricultural Products 10300.88
Logistics Co. Ltd
Shenzhen Agricultural Grain and oil sales
4120.35
Products Small Loan Co. Ltd
Shenzhen Agricultural Tea sales
261147.54
Products E-commerce Co. Ltd
Chengdu Agricultural Grain and oil sales
Products Center Wholesale 24722.12
Market Co. Ltd.Huizhou Higreen Agricultural Grain and oil sales
Products International 118229.69
Logistics Co. Ltd.Shenzhen Medical Materials Grain and oil sales
4120.35
Co. Ltd.Shenzhen Shennong Land Co. Grain and oil sales
3933.46
Ltd.Explanation on goods purchasing labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/outsourcing
Trusteeship management/contract:
In RMB
Client/Contr Entrustingparty/Contract Trustee/ass Truste Truste Managed earnings /pricing Managed earnings confirmed inact-out party or ets contract e /start e /ends of the contract earnings the period / contract earnings
Related managed/contract:
Entrusted management/outsourcing:
In RMB
Client/Contra Entrustingparty/Contract Trustee/ass Truste Truste Managed earnings /pricing Managed earnings confirmed inct-out party or ets contract e /start e /ends of the contract earnings the period / contract earnings
Related management/ outsourcing:
220深圳市深粮控股股份有限公司2023年度报告全文
(3) Related lease
The company acts as the lessor:
In RMB
Lessee Assets Lease income recognized in Lease income recognized lasttype the Period Period
Shenzhen Shenyuan Data Technology Co. ltd. Operatingsite 523988.52 523988.52
Shenzhen Duoxi Equity Investment Fund Office
Management Co. Ltd. space 244577.19 259040.04
The company acts as the lessee:
In RMB
Variable lease Interest expense
Simplified rental fees payments not on lease
for short-term leases included in the Rent paid liabilities Increased right-
and low value asset measurement of assumed of- use assets
Lessor Assets leases (if applicable) lease liabilitiestype (if applicable)
Curren Last Curren Last Curren Last
Current Last Current Last
t perio t perio t perio
period period period period
period d period d period d
Shenzhen
Higreen
Internationa
l
Office 31542.0 31542.0 31542.0 31542.0
Agricultural
space 0 0 0 0
Products
Logistic
Manageme
nt Co. Ltd
Office
buildings
Zhang 72757.6 72757.6
employee
Tiejun 0 0
dormitorie
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
Guarantor Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee has been fulfilled
Explanation on related guarantee:
(5) Related party’s borrowed funds
In RMB
Related party Borrowing amount Starting date Maturity date Note
221深圳市深粮控股股份有限公司2023年度报告全文
Borrowing
Yao Jicheng 1990000.00 2021-11-25 2022-11-24
Yao Jicheng 4010000.00 2021-12-30 2022-12-29
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 10507400.00 11487300.00
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable item
In RMB
Item Related party Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Shenzhen Zhenchu
Account receivable Supply Chain Co. 437388.10 4420.95 2502691.02 25026.91
Ltd.Shenzhen
Account receivable Shennong Kitchen 272089.00 2720.89 43151.00 431.51
Co. Ltd
Huizhou Higreen
Agricultural
Account receivable Products 23220.00 232.20 30264.00 302.64
International
Logistics Co. Ltd.Shenzhen
Account receivable Agricultural Power 15884.00 158.84 21764.00 217.64
Group Co. Ltd.Shenzhen
Account receivable Shenliang Cold 9882.80 98.83 9434.00 94.34
Transport Co. Ltd.Shenzhen
Agricultural
Account receivable 4656.00 46.56
Products Group
Co. Ltd
Shenzhen Duoxi
Equity Investment
Account receivable 1123.20 1123.20
Fund Management
Co. Ltd.Other account ChangzhouShenbao Chacang 24608742.46 22187644.18 24608742.46 22187644.18
receivable E-business Co.
222深圳市深粮控股股份有限公司2023年度报告全文
Ltd.Shenzhen
Other account ShichumingmenCatering 1908202.67 1908202.67 1908202.67 1908202.67
receivable Management Co.Ltd.Shenzhen
Other account
Agricultural Power 1001000.00 1104355.28
receivable
Group Co. Ltd.Other account
Yao Jicheng 463085.35 1702.29 463085.35 1702.29
receivable
Shenzhen
Other account
Shenyuan Data 466800.00 4668.00 27000.00 270.00
receivable
Tech. Co. Ltd
Shenzhen Higreen
International
Other account Agricultural
50000.0050000.00
receivable Products Logistic
Management Co.Ltd
Shenzhen
Other account
Shenliang Cold 10000.00 10000.00
receivable
Transport Co. Ltd.Zhanjiang
Changshan
Other account (Shenzhen)
5520.005520.005520.005520.00
receivable Ecological
Aquaculture Co.Ltd
Shenzhen Duoxi
Other account Equity Investment
2000.004000.00
receivable Fund Management
Co. Ltd.Shenzhen
Municipal People’s
Government State-
Other account
owned Assets 30132.00
receivable
Supervision &
Administration
Commission
Shenzhen Zhenchu
Other account
Supply Chain Co. 1000000.00
receivable
Ltd.Shenzhen
Prepaid accounts Shenyuan Data 125100.00
Tech. Co. Ltd
(2)Payable item
In RMB
Item Related party Ending book Opening bookbalance balance
Account
Shenzhen Shenyuan Data Tech. Co. Ltd 87671.67 485080.53
payable
223深圳市深粮控股股份有限公司2023年度报告全文
Account
Shenzhen Shenliang Cold Transport Co. Ltd. 2033.96
payable
Account Shenzhen Municipal People’s Government State-owned Assets
23263563.6039633221.00
payable Supervision & Administration Commission
Other account
Shenzhen Shenliang Cold Transport Co. Ltd. 280000.00
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 41486.00
payable
Other account
Shenzhen Shennong Kitchen Co. Ltd 275000.00 200000.00
payable
Other account
Shenzhen Shenyuan Data Tech. Co. Ltd 1727021.67 3564200.00
payable
Other account
Yao Jicheng 10564054.93 10650837.33
payable
Other account
Zhanjiang Haitian Aquatic Feed Co. Ltd 20000.00 20000.00
payable
Other account
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co. Ltd 8069454.17 8051954.17
payable
Other account
Zhang Tiejun 34850.00
payable
Contract
Shenzhen Agricultural Power Group Co. Ltd. 280.00
liability
Contract
Shenzhen Zhenchu Supply Chain Co. Ltd. 3760.00
liability
Contract
Shenzhen Shenliang Cold Transport Co. Ltd. 2160.00
liability
Contract
Shenzhen Shenyuan Data Tech. Co. Ltd 2696.00
liability
Contract
Shenzhen Duoxi Equity Investment Fund Management Co. Ltd. 1123.20
liability
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
224深圳市深粮控股股份有限公司2023年度报告全文
4.Share-based payment expense in current period
□Applicable□Not applicable
5. Modification and termination of share-based payment
Nil
6. Other
Nil
XVI. Commitment or contingency
1. Important commitments
Important commitments on balance sheet date
Capital commitment
Capital commitments that have been signed but have not yet been confirmed in the
financial statements Ending balance
Commitment to purchase and construct long-term assets 2505434.05
As of December 31 2023 there are no other significant 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
SN Plaintiff Defendant Cause Court Target(’0000yuan) Progress
Longgang District
Shenzhen Yanxin Part of lease People’s Court of
1 Industrial Co. Shenzhen Cereals Group contract dispute Shenzhen 158.38 Pending
Ltd(Yanxin Industrial) lawsuit Guangdong
Province
Nanshan District the Futian District
Housing and Urban- Contract dispute People’s Court of2 Rural Development Shenzhen Cereals Group lawsuit Shenzhen 389.88 Pending
Bureau GuangdongProvince
The First People’s
Court of Dongguan
Zhonggang Construction Construction City Guangdong
3 Group Co. Dongguan Logistics engineering
Province
Ltd(Zhonggang contract dispute Guangzhou 2168.62 Pending
Construction) lawsuit Maritime Court ofHaizhu District
Guangzhou City
Guangdong
225深圳市深粮控股股份有限公司2023年度报告全文
SN Plaintiff Defendant Cause Court Target(’0000yuan) Progress
Province
Zhongji Hualian Company The First People’s
4 GuoliangTrade(Liaoning) Shenzhen Cereals Group Disputes over Court of DongguanCo. Ltd(Zhongji Co. LtdShenzhen Cereals sales contracts City Guangdong 297.31 Pending
Guoliang) Holdings Co. Ltd. Province
International Food
Industrial Park Construction The First People’s
5 Peng Miaosheng Guangdong yongshen engineering Court of Dongguancontract dispute City Guangdong 453.51 PendingConstruction Engineering
Co. Ltd Xu Jianqiang lawsuit Province
Shenliang Property
Guangdong Luofu Shenzhen Nanshan Cereal
Mountain Tourism Co. Ltd(Nanshan Boluo County
6 Development Co. Cereal)Shenzhen Contract dispute People’s Court 6.14 Pending
Ltd(Luofu Moutain Agricultural Power Group lawsuit Guanagdong
Gourism) Co. Ltd.(Shenzhen Province
Agricultural Power Group)
1 Lease Contract Dispute between Yanxin Industrial and Shenzhen Cerals Group (Part)
On April 12 2022 the plaintiff Yanxin Industrial sued Shenzhen Cereals Group in the Longgang District People’s Court of
Shenzhen requesting the defendant to pay the plaintiff the following amounts totaling 1583800 yuan: 1) Compensation for the
plaintiff’s housing renovation expenses of 1263800 yuan (including fire engineering construction costs of 1840000 yuan purchase
of fire equipment costs of 900000 yuan (buildings 1-6) and decoration engineering construction costs of 3062000 yuan); 2)
Compensation for the plaintiff’s water and electricity facility maintenance fees of 120000 yuan (18000 yuan per year for building 3);
3) Compensation for the plaintiff’s expenses of converting the property from industrial to commercial use amounting to 200000
yuan; 4) Litigation costs to be borne by the defendant.On January 11 2023 the Longgang District People’s Court of Shenzhen made a judgment: the defendant Shenzhen Cereals Group
shall pay the plaintiff Yanxin Industries 640000.00 yuan for house renovation compensation within seven days from the effective
date of this judgment; the other claims of the plaintiff Yanxin Industries are dismissed. The case acceptance fee is 24200.00 yuan
with 11200.00 yuan borne by the plaintiff and 13000.00 yuan borne by the defendant.Both the plaintiff and the defendant have appealed. On January 26 2024 the Guangdong Province Shenzhen Intermediate People’s
Court made a ruling: the first-instance judgment is revoked; the case is remanded to the Longgang District People’s Court of
Shenzhen Guangdong Province for retrial.As of now the Company is unable to determine the financial impact of potential liabilities and the estimated liabilities for this
pending lawsuit have not been recognized.
2 Contract Dispute between Nanshan District Housing and Urban-Rural Development Bureau and Shenzhen Cereals Group
On September 1 2022 the Nanshan District Housing and Urban-Rural Development Bureau filed a lawsuit with the Futian District
People’s Court of Shenzhen against Shenzhen Cereals Group requesting: 1) Judgement for the defendant Cereals Group to fulfill its
assistance obligation by issuing corresponding legal and tax-inclusive invoices to the plaintiff for the repurchase amount with an
invoice amount of 3.8988 million yuan. 2) The litigation costs in this case shall be borne by the defendant.On July 3 2023 Shenzhen Cereals Group applied to the Futian District People’s Court of Shenzhen to add Shenzhen Yulunda
Investment Development Co. Ltd. (hereinafter referred to as “Yulunda”) as a third-party defendant in this case. At the same time
Shenzhen Cereals Group filed a counterclaim with the Futian District People’s Court of Shenzhen requesting: 1) Request the court to
order the cancellation of the “repurchase agreement” signed by the original defendant and plaintiff on April 26 2019. 2) Request the
226深圳市深粮控股股份有限公司2023年度报告全文
court to order the counterclaim costs in this case to be borne by the counter-defendant.On July 18 2023 the first trial was held and the Futian District People’s Court agreed to add Shenzhen Yulunda Investment
Development Co. Ltd. as a third-party defendant in the lawsuit.On January 26 2024 the Futian District People’s Court of Shenzhen ruled: I) The defendant Cereals Group shall issue legal and tax-
inclusive invoices to the plaintiff Nanshan District Housing and Urban-Rural Development Bureau in the amount of 3.8988 million
yuan within ten days from the effective date of this judgment. II) Dismiss the counterclaim request of the defendant Shenzhen
Cereals Group.On February 7 2024 Shenzhen Cereals Group filed an appeal. The case is currently under review.According to the agreement and supplementary agreement signed between our company and Yulunda regarding the cooperative
renovation of Dingtou Village Cereals Warehouse Project our company cooperates with Yulunda to construct properties. Our
company receives 5600 square meters of self-use properties according to the specified building decoration standards and all other
property rights belong to Yulunda; our company receives fixed profits from the project and all operational risks and losses from the
project development are borne by Yulunda. Our company and Yulunda have jointly established a bank-managed account and the
balance of the managed account currently stands at 5.1 million yuan. It is anticipated that the purchase funds of 3.8988 million yuan
from Nanshan District Housing and Urban-Rural Development Bureau will be received and the account balance will reach 9.00
million yuan covering the potential losses that may arise from the judgment.As of now our company does not need to recognize estimated liabilities for this pending lawsuit.
3 Construction Engineering Contract Dispute between Zhonggang Construction and Dongguan Logistics
On April 24 2023 Dongguan Logistics received the “Civil Complaint” and other related documents. Zhonggang Construction filed a
lawsuit against Dongguan Logistics with the First People’s Court of Dongguan City requesting: 1) Judgment for the defendant to
pay the plaintiff construction fees of 15614000.00 yuan; 2) Judgment for the defendant to pay overdue payment interest to the
plaintiff (specific calculation detailed in the “Interest Calculation Table” currently totaling 6072200.00 yuan until February 24
2023); 3) The defendant to bear all litigation costs in this case. The total amount of the aforementioned first and second litigation
requests is currently 21686200.00 yuan.On May 24 2023 Dongguan Logistics filed a counterclaim against Zhonggang Construction as the counterclaim plaintiff with the
Dongguan City First People’s Court requesting: 1) Judgment for the counterclaim defendant to pay the counterclaim plaintiff a
penalty of 2.0198 million yuan (based on the provisional settlement price of the project 100.9891 million yuan calculated at 2% of
the provisional settlement price of the project with the final penalty amount to be determined by the court); 2) All counterclaim costs
in this case to be borne by the counterclaim defendant.On June 5 2023 Zhonggang Construction added a litigation request: the defendant to compensate the plaintiff for the loss due to
project delay of 6.02 million yuan.On June 9 2023 the First People’s Court of Dongguan City informed: due to the relevance of Guangdong Shipping Planning and
Design Institute Co. Ltd. (hereinafter referred to as “Shipping Planning”) to this case to clarify the facts of the case the court
permitted the plaintiff's application to add Guangdong Shipping Planning and Design Institute Co. Ltd. as the third party to the
lawsuit.On June 30 2023 Zhonggang Construction filed a lawsuit with the Guangzhou Maritime Court against Dongguan Logistics as the
defendant and Guangdong Shipping Planning and Design Institute Co. Ltd. (hereinafter referred to as “Shipping Plan”) as the third
party requesting: 1) Judgment for the defendant to pay the plaintiff construction fees of 15.614 million yuan; 2) Judgment for the
defendant to pay overdue payment interest to the plaintiff (specific calculation detailed in the “Interest Calculation Table” currently
227深圳市深粮控股股份有限公司2023年度报告全文
totaling 6.3713 million yuan until June 30 2023); 3) Judgment for the defendant to compensate the plaintiff for the loss due to
project delay of 6.02 million yuan; 4) The defendant to bear all litigation costs in this case. The total amount of the aforementioned
first to third litigation requests is currently 28.0054 million yuan.On July 4 2023 Zhonggang Construction applied to withdraw the lawsuit due to jurisdictional change to the Dongguan City First
People’s Court. On July 5 2023 Dongguan Logistics applied to withdraw the counterclaim. On August 11 2023 the First People’s
Court of Dongguan City made a civil ruling agreeing to both parties’ withdrawal of the lawsuit.On August 23 2023 Dongguan Logistics (counterclaim plaintiff) filed a counterclaim with the Guangzhou Maritime Court with
Zhonggang Construction as the counterclaim defendant and Shipping Planning as the third party requesting: 1) Judgment for the
counterclaim defendant to pay the counterclaim plaintiff a penalty of 2.0198 million yuan (based on the provisional settlement price
of the project 100.9891 million yuan calculated at 2% of the provisional settlement price of the project with the final penalty
amount to be determined by the court); 2) All counterclaim costs in this case to be borne by the counterclaim defendant.On September 11 2023 a pre-trial conference was held at the Guangzhou Maritime Court during which the judge organized both
parties for cross-examination of the evidence and questioned both parties about the facts of the case.On September 15 2023 the plaintiff submitted an application to the court to conduct an appraisal of the disputed issues in the case.On October 13 2023 the court held a second pre-trial conference during which both parties completed all cross-examinations of the
evidence submitted by the other party. On October 17 2023 the original defendants clarified the scope of the appraisal materials for
this appraisal and mailed the appraisal materials. On November 6 2023 the appraisal institution was determined to be Nanjing
Yongdao Engineering Consulting Co. Ltd. Zhuhai Branch. On December 4 2023 the appraisal institution conducted on-site
inspections at the first phase terminal of Dongguan Logistics. On December 18 2023 both parties submitted additional appraisal
materials in accordance with the requirements of the court and the appraisal institution and provided cross-examination opinions on
the additional materials submitted by the other party.As of now our company is unable to determine the financial impact of potential liabilities and estimated liabilities for this pending
lawsuit have not been recognized.
4 Contract Dispute Lawsuit between Zhongji Guoliang and Hualian Company Shenzhen Cereals Group and Shenzhen Cereals
Holdings
Zhongji Guoliang filed a lawsuit against Hualian Company (the first defendant) Cereals Group (the second defendant) and
Shenzhen Cereals Holdings (the third defendant) with the Futian District People’s Court of Shenzhen requesting: 1) Judgment for
the first defendant to refund the deducted payment of 2.7254 million yuan and compensate the plaintiff for overdue losses (based on
the deducted payment of 2.7254 million yuan calculated at the one-year loan market quoted interest rate (LPR) plus 50% from
November 12 2021 to the date of payment currently totaling 0.2477 million yuan until July 11 2023); 2) the second defendant and
the third defendant to jointly assume the liability for the first litigation request; 3) Litigation fees property preservation fees and
other litigation costs to be borne by the three defendants (the total amount for the first litigation request currently amounts to 2.9731
million yuan until July 11 2023).On August 7 2023 the Futian District People’s Court of Shenzhen issued a civil ruling to seal seize or freeze property under the
name of Hualian Company worth 2.9731 million yuan.On November 17 2023 the case was heard in court and the court has not yet made a judgment.As of now our company anticipates a high probability of winning the case and if successful no losses will be incurred.
5 Construction Contract Dispute Lawsuit between Peng Miaosheng and Food Industry Park Yongsheng Construction and Xu
Jianqiang Construction
228深圳市深粮控股股份有限公司2023年度报告全文
On October 24 2023 Peng Miaosheng filed a lawsuit with the First People’s Court of Dongguan City with the following litigation
requests: 1) Demand for Defendant Xu Jianqiang to pay construction labor fees of 4.0973 million yuan; 2) Demand for Defendant Xu
Jianqiang to pay interest on construction labor fees. Calculated at the one-year loan market quoted interest rate of 3.85% published by
the National Interbank Funding Center from January 6 2021 until the full repayment of the construction fee of 4.0973 million yuan.The interest accrued until October 24 2023 amounts to 0.4377 million yuan; 3) Yongsheng Construction to bear joint and several
payment responsibility for the aforementioned fee of 4.0973 million yuan and interest; 4) Dongguan International Food Industry Park
Development Co. Ltd. to bear payment responsibility for the aforementioned construction fee of 4.0973 million yuan and interest
within the scope of its outstanding payment for the construction fee. The total amount for the above fees is currently 4.5351 million
yuan; 5) Demand for the defendant to bear all litigation costs.On January 24 2024 the court organized both parties to present cross-examination opinions on the evidence provided by the other
party and conducted an investigation into the case.As of now the company is unable to determine the financial impact of potential liabilities and estimated liabilities for this pending
lawsuit have not been recognized.
6 Contract Dispute between Luofu Mountain Tourism and Shenliang Property Nanshan Cereals and Shenzhen Agricultural
Power Group
The plaintiff Luofu Mountain Tourism filed a lawsuit against Shenliang Property Nanshan Cereals and Shenzhen Agricultural
Power with the Boluo County People’s Court requesting: 1) Order for the three defendants to return the land buildings and fixed
facilities located in the Xiangshan section of the Zhuming Cave Scenic Area of Luofu Mountain to the plaintiff within ten days of the
effective date of this judgment; 2) Order for the three defendants to jointly pay the plaintiff a monthly occupation fee of 7670 yuan
(specifically subject to assessment) starting from October 1 2022 until the actual date of vacating by the defendants (the current
calculated occupation fee until the date of filing the lawsuit is 61400 yuan); 3) Litigation fees assessment fees etc. to be borne by
the three defendants.During the course of the trial the plaintiff Luofu Mountain Tourism amended the second litigation request to: Order for the three
defendants to jointly pay the plaintiff a monthly occupation fee of 1000.00 yuan starting from October 1 2022 until the actual date
of vacating by the defendants.On November 14 2023 Boluo County People’s Court ruled: 1) Defendants Nanshan Cereals Shenliang Property and Shenzhen
Agricultural Power Group shall return the land buildings and fixed facilities occupied by the “Nanpeng Resort Village” located in
the Xiangshan section of the Luofu Mountain Zhuming Cave Scenic Area to the plaintiff Luofu Mountain Tourism within fifteen
days of the effective date of this judgment; 2) Dismiss other litigation requests from the plaintiff Luofu Mountain Tourism; 3) All
defendants have filed appeals with the court.On December 12 2023 due to the construction needs of the infrastructure facilities project in Ru Lake West Garden Huicheng
District Huizhou Shenzhen Bao entered into a “State-owned Land Use Right Repurchase Compensation Agreement” with the
Natural Resources Bureau of Huicheng District Huizhou City. The Natural Resources Bureau of Huicheng District Huizhou City
repurchased the state-owned land use rights totaling 29244.33 square meters owned by Huizhou Shenzhen Bao in East Asia Village
Huicheng District and retained 3637.67 square meters of land on the northeast side outside the planned road range. The Natural
Resources Bureau of Huicheng District Huizhou City will pay a one-time compensation of 16.564 million yuan to Huizhou
Shenzhen Bao's account before February 29 2024. On January 30 2024 Huizhou Shenzhen Bao received the aforementioned land
use rights compensation from the Natural Resources Bureau of Huicheng District Huizhou City. As of now the procedures for the
transfer of land ownership are being processed.On December 12 2023 due to the construction needs of the infrastructure project of Ruhu West Park in Huicheng District Huizhou
229深圳市深粮控股股份有限公司2023年度报告全文
Shenbao signed a compensation agreement for the recovery of state-owned land use rights with the Huicheng District Natural
Resources Bureau. The Huicheng District Natural Resources Bureau of Huizhou City implemented an agreement to recover the
29244.33 square meters of state-owned land use rights of Huizhou Shenbao located in Ruhu East Asia Village Huicheng District
retaining 3637.67 square meters of land on the northeast side outside the planned road range. The Natural Resources Bureau of
Huicheng District Huizhou City made a one-time payment of a total of 16.564 million yuan in land compensation to the account of
Huizhou Shenbao before February 29 2024. On January 30 2024 Huizhou Shenbao received the aforementioned compensation for
land use rights from the Natural Resources Bureau of Huicheng District Huizhou City. As of now the land ownership transfer
procedure is being processed.The company transferred 51% of the equity and debt of Wuhan Jiacheng through public listing to Tianyu Environment. With June 30
2023 as the asset evaluation benchmark date the assessed value of the shareholders’ equity of Wuhan Jiacheng is RMB 45.325
million. As of December 31 2023 the company has received a total of RMB 16.936 million in debt transfer payments and no less
than 30% equity transfer payments. As the articles of association of Wuhan Jiacheng have not been amended the board of directors
has not been reelected and the transferee has not appointed senior management personnel such as directors and general managers
the company still controls Wuhan Jiacheng. The remaining equity transfer payment was received on March 8 2024. As of now
Shenzhen Cereals Holdings Co. Ltd. has received all equity debt and related interest and has completed the equity delivery and
company handover procedures.
(2) Other contingencies
As of December 31 2023 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.
1. Other
XVII. Events after balance sheet date
1. Important non-adjustment matters
In RMB
Item Content Impact on financial status and operation results Reasons of fails to estimate the impact
2.Profit distribution
Proposed distribution of dividends per 10 shares (yuan) 2
Dividend payout per 10 shares declared after review and approval (yuan) 2
3. Sales return
4. Other events after balance sheet date
On December 12 2023 due to the construction needs of the infrastructure project of Ruhu West Park in Huicheng District Huizhou
Shenbao signed a compensation agreement for the recovery of state-owned land use rights with the Huicheng District Natural
230深圳市深粮控股股份有限公司2023年度报告全文
Resources Bureau. The Huicheng District Natural Resources Bureau of Huizhou City implemented an agreement to recover the
29244.33 square meters of state-owned land use rights of Huizhou Shenbao located in Ruhu East Asia Village Huicheng District
retaining 3637.67 square meters of land on the northeast side outside the planned road range. The Natural Resources Bureau of
Huicheng District Huizhou City made a one-time payment of a total of 16.564 million yuan in land compensation to the account of
Huizhou Shenbao before February 29 2024. On January 30 2024 Huizhou Shenbao received the aforementioned compensation for
land use rights from the Natural Resources Bureau of Huicheng District Huizhou City. As of now the land ownership transfer
procedure is being processed.The company transferred 51% of the equity and debt of Wuhan Jiacheng through public listing to Tianyu Environmen. With June 30
2023 as the asset evaluation benchmark date the assessed value of the shareholders’ equity of Wuhan Jiacheng is RMB 45.325
million. As of December 31 2023 the company has received a total of RMB 16.936 million in debt transfer payments and no less
than 30% equity transfer payments. As the articles of association of Wuhan Jiacheng have not been amended the board of directors
has not been reelected and the transferee has not appointed senior management personnel such as directors and general managers
the company still controls Wuhan Jiacheng. The remaining equity transfer payment was received on March 8 2024. As of now
Shenzhen Cereals Holdings Co. Ltd. has received all equity debt and related interest and has completed the equity delivery and
company handover procedures.Due to the expected growth of global grain production sufficient inventory and the continuous growth of domestic grain imports as
of the date of this financial report the company's imported prices of barley sorghum and other varieties continue to fall and the
company's inventory may suffer impairment loss.XVIII. Other important events
1. Previous accounting errors correction
(1) Retrospective restatement
In RMB
Content of accounting error correction Procedures Items impact during vary comparative period Accumulated impact
(2)Prospective application
Content of accounting error correction Approval procedure Reasons for adopting the prospective applicable method
2. Debt restructuring
3. Assets exchange
(1) Exchange of non-monetary assets
(2) Other assets exchange
4. Pension plan
5. Discontinuing operation
In RMB
231深圳市深粮控股股份有限公司2023年度报告全文
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
(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) Account receivable classified by category
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 65714145.99 87190258.27
Over 3 years 37305.68 37305.68
4-5 years 8852.60
Over 5 years 37305.68 28453.08
Total 65751451.67 87227563.95
(2)Accrued bad debt provision
In RMB
Ending balance Opening balance
Categor Book value Bad debts reserve Book value Bad debts reserve
y Book valueAccrue Accrue Book value
Amount Ratio Amount Amount Ratio Amount
d ratio d ratio
Account
receivab 28453. 100.00 28453. 100.0028453.08 0.04% 28453.08 0.03%
le with 08 % 08 %
232深圳市深粮控股股份有限公司2023年度报告全文
bad debt
provisio
n
accrual
on a
single
basis
Includin
g:
Account
receivab
le with
bad debt
provisio 65722998. 99.96 8442.6 65714555. 87199110. 99.97 4932.0 87194178.n 0.01% 0.01%59 % 5 94 87 % 3 84
accrual
on
portfoli
o
Includin
g:
Portfoli
o of
sales 8442.6 4932.0144909.60 0.22% 5.83% 136466.95 59425.60 0.07% 8.30% 54493.57
receivab 5 3
le
Object-
specific 65578088. 99.74 65578088. 87139685. 99.90 87139685.portfoli 99 % 99 27 % 27
o
Total 65751451. 100.00 36895. 65714555. 87227563. 100.00 33385. 87194178.0.06% 0.04%
67%739495%1184
Accrual of bad debt provision on single item:
In RMB
Opening balance Ending balance
Name Bad debt Bad debt
Book balance Book balance Accrual ratio Accrual reason
reserve reserve
Accrual of bad Extreme low
debt provision 28453.08 28453.08 28453.08 28453.08 100.00% ability to
on single item: recover
Total 28453.08 28453.08 28453.08 28453.08
Make bad debt reserve in terms of portfolio: portfolio of sales receivable
In RMB
Name Ending balance
Book balance Bad debt reserve Accrual ratio
Portfolio of sales receivable 144909.60 8442.65 5.83%
Object-specific portfolio 144909.60 8442.65
Explanation on the basis to determine such portfolio:
Accrual of bad debt provision on portfolio: Object-specific portfolio
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Object-specific portfolio 65578088.99 0.00%
Total 65578088.99
Explanation on the basis to determine such portfolio:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses:
233深圳市深粮控股股份有限公司2023年度报告全文
□Applicable□Not applicable
(3)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Written-off Other
Bad debt provision of
account receivable 33385.11 3510.62 36895.73
Total 33385.11 3510.62 36895.73
Important bad debt provision 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 actually charged off in the period
Unit: RMB
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
balance of Ratio in total ending Ending balance of bad debt
Ending balance Ending balance
Enterprise of account account balance of account reserves for account receivableof contract
receivable receivable receivables and contract and impairment reserve ofassets
and contract assets contract assets
assets
2.Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 1624337855.63 1560888393.94
Total 1624337855.63 1560888393.94
234深圳市深粮控股股份有限公司2023年度报告全文
(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 debt provision
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
In RMB
Amount changed in the period
Category Opening balance
Accrued Collected or
Ending balance
reversal Charged off Other
Bad debt provision
Total
Important bad debt provision 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) Interest receivable actually 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:
235深圳市深粮控股股份有限公司2023年度报告全文
(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 the invested Ending Account Reasons for not Whether impairment occurs and its judgment
entity) balance age collection basis
3)Accrued bad debt provision
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balanceAccrued reversal Charged off Other
Bad debt provision
Total
Important bad debt provision 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 actually charged off in the period
Unit: RMB
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:
236深圳市深粮控股股份有限公司2023年度报告全文
(3)Other account receivable
1)By nature
In RMB
Nature Ending book balance Beginning book balance
Margin and deposit 1000000.00 1054999.00
Other intercourse funds 1651168026.40 1587678288.68
Total 1652168026.40 1588733287.68
2)By aging
In RMB
Aging Ending book balance Beginning book balance
Within 1 year(inclusive) 314162982.64 1563188883.33
1-2 year 1312629466.00 49999.00
Over 3 years 25375577.76 25494405.35
4-5 years 436664.33
Over 5 years 25375577.76 25057741.02
Total 1652168026.40 1588733287.68
3)Accrued bad debt provision
In RMB
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book Book
Accrual
Amount Ratio Amount value
Accrual
Amount Ratio Amount value
ratio ratio
Including:
Including:
Including：
expected
combination
of credit risk
characteristics
Specific
object
portfolio
Bad debt reserve is made based on the general model of expected credit losses:
In RMB
Phase I Phase II Phase III
Bad debt provision 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 2023 213626.85 27631266.89 27844893.74
Balance on Jan. 1 2023
in the period
Current reversal 158.70 158.70
237深圳市深粮控股股份有限公司2023年度报告全文
Other change -14564.27 -14564.27
Balance on Dec. 31
213468.1527616702.6227830170.77
2023
Classification basis and bad debt provision ratio for each stage
Changes in book balance with significant changes in the current period's provision for losses
□Applicable□Not applicable
4)Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance
Accrued Collected or
Ending balance
reversal Charged off Other
Bad debt provision of
other account 27844893.74 158.70 -14564.27 27830170.77
receivable
Total 27844893.74 158.70 -14564.27 27830170.77
Important bad debt provision 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) Other account receivable actually 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 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
7)Those booked into other account receivables due to centralized fund management
In RMB
Other explanation:
238深圳市深粮控股股份有限公司2023年度报告全文
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 4032344425.09 5500000.00 4026844425.09 4039319425.09 5500000.00 4033819425.09
Investment in
joint venture
and associated 2927628.53 2927628.53 2927628.53 2927628.53
enterprise
Total 4035272053.62 8427628.53 4026844425.09 4042247053.62 8427628.53 4033819425.09
(1)Investment in subsidiary
In RMB
Current changes (+/ -)
Beginning
Opening Addition AccrualInvested balance of Ending
Ending
of
entity balance(book al Capital balance(book
balance of
value) impairmen impairmeninvestme reduction impairme Other value)
t provision nt t provisionnt provision
Shenzhen
Cereals 3291415036. 3291415036.Group Co. 82 82
Ltd
Dongguan
Shenliang 306980000.0 147000 321680000.0
Logistics 0 00.00 0
Co. Ltd.Huizhou
Shenbao
60000000.0060000000.00
Technology
Co. Ltd.Shenzhen
Shenbao
223228545.9223228545.9
Huacheng
11
Technology
Co. Ltd.Shenzhen
Shenshenba
o 50000000.00 50000000.00
Investment
Co. Ltd
Shenzhen
Shenbao
5500000.5500000.
Industrial &
0000
Trading
Co. Ltd
Shenzhen
Shenliang
80520842.3680520842.36
Food Co.Ltd.Wuhan
21675000.
Jiacheng 21675000.00
00
Biotechnolo
239深圳市深粮控股股份有限公司2023年度报告全文
gy Co. Ltd
4033819425.5500000.14700021675000.4026844425.5500000.
Total
090000.00000900
(2)Investment in associated enterprises and joint venture
In RMB
Openin Current changes (+ -)
g Cash EndingInvest
Opening balance ment Other Oth divide Accrua
balance
Investme Endingbalance( of Additi Capit comprehe er nd or l ofnt balance(
of
book impairm onal al
gains nsive equi profit impair Ot book impairmcompany value) invest reduc
recogn
ized income ty annou ment herent value)
ent
ment tion under adjustme cha nced provisi
provisio
provisio n
n equity
nt nge to on
issued
I. Joint venture
II. Associated enterprise
Changzh
ou
Shenbao
Chacang
E-
business
Co. Ltd.Shenzhe
n
Shenbao 28700 28700
(Xinmin) 00.00 00.00
Foods
Co. Ltd
Shenzhe
n
Shenbao
(Liaoyua 57628. 57628.n) 53 53
Industrial
Compan
y
CR
Sanjiu
Shenzhe
n Tianji
Optoelec
tronic
Technolo
gy Co.Ltd
2927629276
Subtotal
28.5328.53
2927629276
Total
28.5328.53
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable□Not applicable
240深圳市深粮控股股份有限公司2023年度报告全文
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 156272744.29 203896997.77
Other business 275218.36 471590.28 183215.14 471590.28
Total 156547962.65 471590.28 204080212.91 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:
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
241深圳市深粮控股股份有限公司2023年度报告全文
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 from disposal of long-term equity investment 303903528.99 190800000.00
Investment income during the holding period of tradable financial assets 3378137.80 4912249.48
Total 307281666.79 195712249.48
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 (including the write-off that accrued for impairment of
assets) 2394378.42
Governmental subsidy 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 14544417.04
and having a continuous impact on the company’s gains/losses)
Except for effective hedging business related to the normal operation of the company gains/losses arising
from changes in fair value of trading financial assets and trading financial liabilities held by non-financial
enterprises as well as investment income obtained from disposal of trading financial assets trading 182701.67
financial liabilities and available for sale financial assets
Gains/losses of assets delegation on others’ investment or management 6622492.60
Reversal of provision of impairment of accounts receivable which are treated with separate depreciation test 679204.22
Other non-operating income and expenditure except for the aforementioned items 644754.74
Other profit and loss items that meet the definition of non-recurring profit and loss 5027939.98
Less: impact on income tax 386299.20
242深圳市深粮控股股份有限公司2023年度报告全文
Impact on minority shareholders’ equity (after-tax) 19653709.51 --
Total
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable □ Not applicable
The Company has no other gains/losses items that meet the definition of non-recurring gains/losses.Explain the items defined as non-recurring gains/losses according to the lists of non-recurring gains/losses in Q&A Announcement
No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---non-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 7.26% 0.3018 0.3018
Net profits attributable to common stock stockholders of the
Company after deducting non-recurring gains and losses 6.85% 0.2847 0.2847
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ?Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable□Not applicable
(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
243
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