SHENZHEN CEREALS HOLDINGS CO. LTD.
SEMI-ANNUALREPORT 2020
August 2020
Section I. Important Notice Contents and Interpretation
Board of Directors Supervisory Committee 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.
Chairman of the Company Zhu Junming General Manager Hu Xianghai Head
of Accounting Jin Zhenyuan and Head of Accounting Institution (Accounting
Supervisors) Wen Jieyu hereby confirm that the Financial Report of
Semi-Annual Report 2020 is authentic accurate and complete.In addition tot he following directors other directors attended the Board
Meeting for the deliberation of the semi-annual report.Name of the director
not present in person
Title of the director not
present in person
Reason for not
attending the meeting in
person
Name of principal
Lu Qiguang Director On a business trip Hu Xianghai
Concerning the forward-looking statements with future planning involved in the
semi-annual report they do not constitute a substantial commitment for
investors Securities Times China Securities Journal Hong Kong Commercial
Daily 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 its
countermeasures in the report investors are advised to pay attention to read
“Risks and Countermeasures”in the report of Section IV-Discussion and
Analysis of the Operation. 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 Company plans not to distributed cash dividend bonus and no capitalizing
of common reserves either.Contents
Semi-Annual Report 2020........................................................................................................................1
Section I Important Notice Contents and Interpretation................................................................. 2
Section II Company Profile and Main Financial Indexes..................................................................6
Section III Summary of Company Business.......................................................................................10
Section IV Discussion andAnalysis of Operation............................................................................. 14
Section V Important Events.................................................................................................................. 27
Section VI Changes in shares and particular about shareholders................................................. 37
Section VII Preferred Stocks.................................................................................................................42
Section VIII Convertible bonds............................................................................................................ 43
Section IX Directors Supervisors and Senior Executives............................................................... 44
Section X Corporate Bonds...................................................................................................................45
Section XI Financial Reprot..................................................................................................................46
Section XII Documents Available for Reference..............................................................................220
Interpretation
Items Refers to Contents
SZCH/Listed Company /the
Company/
Refers to Shenzhen Cereals Holdings Co. Ltd.
SZCG Refers to Shenzhen Cereals Group Co. Ltd
Hualian Company Refers to Shenzhen Hualian Grain and Oil Trading Co. Ltd.Shenliang Property Refers to Shenzhen Shenliang Property Development Co. Ltd.
Doximi Refers to 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.
Dongguan Food Industrial
Park
Refers to
Dongguan International Food Industrial Park Development Co.
Ltd.
Big Kitchen Refers to Shenzhen Shenliang Big Kitchen Food Supply Chain Co. Ltd
Shenliang Cold Chain Refers to Shenzhen Shenliang Cold Chain Logistics Co. Ltd.Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Technology Co. Ltd.Shenbao Investment Refers to Shenzhen Shenshenbao Investment Co. Ltd.Shenbao Sanjing Refers to
Shenzhen Shenbao Sanjing Food and Beverage Development
Co. Ltd.
Wuyuan Ju Fang Yong Refers to Wuyuan Ju Fang Yong Tea Industry Co. Ltd.
SYDATA Refers to SHENZHEN SYDATATECHNOLOGYCO. LTD
Food Group Refers to
Shenzhen Food Materials Group Co. Ltd Shenzhen Food Group
Co. Ltd.
Agricultural Products Refers to Shenzhen Agricultural Products Group Co. Ltd
Shenzhen SASAC Refers to
Shenzhen Municipal People’s Government State-owned Assets
Supervision & Administration Commission
CSRC Refers to China Securities Regulation Commission
RMB/10 thousand yuan Refers to CNY/ten thousand yuan
Section II Company Profile and Main Financial Indexes
I. Company profile
Short form for share SZCH Shenliang B Stock code 000019 200019
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 (if applicable)深粮控股
English name of the
Company(if applicable)
SHENZHEN CEREALS HOLDINGS CO.LTD
Legal Representative Zhu Junming
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Dai Bin Chen Kaiyue Liu Muya
Contact add.
13/F Tower A World Trade Plaza No.9 Fuhong
Rd. Futian District Shenzhen
13/F Tower A World Trade Plaza No.9 Fuhong Rd.
Futian District Shenzhen
Tel. 0755-82027522 0755-82027522
Fax. 0755-83778311 0755-83778311
E-mail szch@slkg1949.com chenky@slkg1949.com liumy@slkg1949.com
III. Others
1. Way of contact
Whether registrations address offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √Not applicable
The registrations address offices address and codes as well as website and email of the Company have no changes in the Period
found more in Annual Report 2019.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period found more details in Annual Report 2019.IV. Main accounting data and financial indexes
Whether information disclosure and preparation place changed in reporting period or not
□Yes √No
Current Period Same period of last year
Changes over last year
(+-)
Operating revenue (RMB) 4740428222.10 4782167732.69 -0.87%
Net profit attributable to shareholders of
the listed Company (RMB)
210738686.12 203168850.61 3.73%
Net profit attributable to shareholders of
the listed Company after deducting
non-recurring gains and losses (RMB)
196760081.80 198195100.05 -0.72%
Net cash flow arising from operating
activities (RMB)
9610361.15 -389429629.75 102.47%
Basic earnings per share (RMB/Share) 0.1828 0.1763 3.69%
Diluted earnings per share (RMB/Share) 0.1828 0.1763 3.69%
Weighted average ROE 4.66% 4.82% -0.16%
End of current Period End of last year
Changes over end of last
year (+-)
Total assets (RMB) 7028727913.52 6775067275.86 3.74%
Net assets attributable to shareholder of
listed Company (RMB)
4400982300.34 4420751187.57 -0.45%
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed
Company
Net assets attributable to shareholders of
listed Company
Current period Last period Period-end Period-begin
Chinese GAAP 210738686.12 203168850.61 4400982300.34 4420751187.57
Items and amount adjusted by IAS
Adjustment for other
payable fund of stock
1067000.00 1067000.00
market regulation
IAS 210738686.12 203168850.61 4402049300.34 4421818187.57
2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no above mentioned condition occurred in the period
3. Explanation on differences of the data under accounting standards in and out of China
□ Applicable √ Not applicable
VI. Items and amounts of extraordinary profit (gains)/loss
√ 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)
2326477.57
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards which are closely relevant to
enterprise’s business)
10824560.17
Fund possession cost reckoned in current gain/loss charged from non-financial enterprise 204763.50
Profit and loss of assets delegation on others’ investment or management 7544998.92
Gains and losses from change of fair values of held-for-transaction financial assets
derivative financial assets held-for-transaction financial liability and derivative financial
liability except for the effective hedge business related to normal business of the
Company and investment income from disposal of tradable financial assets derivative
financial assets tradable financial liability derivative financial liability and other debt
investment.
-572784.42
Switch-back of provision of impairment of account receivable and contract assets which
are treated with separate depreciation test 1176620.32
Other non-operating income and expenditure except for the aforementioned items -3827866.72
Other gains/losses items that conform to the definition of non-recurring gains/losses 337500.00
Less: impact on income tax 3616736.56
Impact on minority shareholders’ equity (post-tax) 418928.46
Total 13978604.32 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss explain reasons
□ Applicable √ Not applicable
In reporting period the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
Section III Summary of Company Business
I. Main businesses of the Company in the reporting period
During the reporting period the company further promoted the business integration and coordinated development
the main business 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. According to the market
conditions and the needs of upstream and downstream enterprises the above-mentioned grain and oil products
purchased are independently traded. The unprocessed grain such as wheat rice in the husk corn barley and
sorghum are mainly supply to the customers such as large traders feed and flour processing enterprises in the
industry; the rice flour edible oil fine tea and beverage etc. are mainly supply to the enterprises and institutions
food enterprises and community residents etc.
Food processing and manufacturing business are mainly the processing the technology research in aspect of flour
rice cooking oil tea and natural plants 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” high-gluten tailored flour and biscuit tailored flour; “Feiyu”
caramel treats tailored flour; “Yuejixiang” moon cake tailored flour. Rice products include “Shenliang Duoxi”
“Guzhixiang” “Jinjiaxi” “Runxiangliangpin” “Hexiang” “Shenliang Yushuiqing” etc. Cooking oil products
include brands such as “Shenliang Duoxi” “Shenliang Fuxi” “Hongli” and “Shenliang Yushuiqing” etc.Shenliang Duoxi Changxiangdao Daohuaxiang Rice was selected as the first batch of “China Good Grain and Oil”
products of the National Grain Administration its production and processing process conforms to the
requirements for the evaluation of Shenzhen-supplied food and it is allowed to use the Shenzhen Standard · SZProduct logo. ”Shenliang Yushuiqing” has formed a serial of special grade military grain supply military demand
and civil brands in rice flour oil and coarse cereals. Tea products of the Company including “Golden Eagle”
instant tea powder tea concentrate and other series of tea products; “Jufangyong” “Gutan” “Fuhaitang” series of
tea products; condiment including the “Tri-Well” oyster sauce chicken essence and seafood sauce; beverage
includes “Shenbao” chrysanthemum tea lemon tea herbal tea and other series of drinks.The leasing and business service refers to providing the professional import & export trade warehousing &
storage logistic & distribution quality inspection & information technology services for all kinds of clients in the
upstream and downstream of the industrial chain by using the advantage of brand reputation experience
management services facilities and information systems that accumulated in field of grain and oil market as well
as the property leasing & management commerce operation management services. the construction and operation
for the node in Shenliang Dongguan Grain Logistics are promoted steady. After the project is completed it will
become a comprehensive grain circulation service provider integrating five functions including grain and oil
terminal transfer reserve inspection and processing processing industry and market transaction. The subordinateShenliang Quality Inspection is identified as the “Guangdong Shenzhen National Grain Quality MonitoringStation”. The subordinate Shenliang Cold-Chain providing a cold chain storage and distribution services for
customers and the Shenliang property is the professional assets management platform enterprise.II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major Change
Fixed assets
Changes in the Period mainly because the food processing project of Shenliang
Dongguan grain logistics nodes was completed and put into operation which was
transferred to fixed assets from construction in progress then the fixed assets increased
over that of period-begin
Intangible assets No major Change
Construction in progress
Changes in the Period mainly because the project of Shenliang Dongguan grain
logistics nodes and Shuangyashan grain source base project are put into operation; at
the same time after the food processing project of Shenliang Dongguan grain logistics
nodes completed and put into operation the construction in progress declined for
transferred to fixed assets
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
The company has large-scale warehouse resources in Shenzhen and is the "rice bag" trusted by the public. During
the reporting period the company extended and expanded the development of the grain oil and food industrychain through resource optimization and integration and took the strategic goal of creating a “smart grain oil andfood supply chain service provider” to further strengthen the company’s core competitive advantages.
1. Management Efficiency Advantage
The core management team of the company has rich experience and has a strong strategic vision and pragmatic
spirit. It has formed a set of effective system to promote the high-quality development of the company by
combining with the company’s actual 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 and control” to “strategic management andcontrol”. In the business management and control the company builds a “four-in-one” management and controlmodel that the “business operations and fund management inventory management and quality management”
relatively separate and check and balance each other at the same time it strengthens risk management budget
management plan management contract management customer management and brand management and other
measures to effectively prevent operational risks. Through innovative talent management the company has
established an open talent team to meet the long-term development of enterprises. The company has innovated and
implemented the performance appraisal mechanism and established a result-oriented incentive and restraint
assessment mechanism which effectively built the performance culture and stimulated the viability within theenterprise. The company insists on cultivating and advocating the corporate culture with “people-orientedperformance first excellent quality and harmony” as the core values combines the personal development goals of
employees with the corporate vision and enhances the cohesiveness and centripetal force of the enterprise.
2. Business model advantages
In terms of business layout and management the company has deepened and subdivided its target markets carried
out specialized operations in different areas of the grain and oil food industry chain embraced the Internet and
gradually built a “trinity” of multilevel product supply network of terminal grain oil and food e-commerce sales
catering and distribution services and bulk grain and oil trading services. In terms of terminal grain oil and foode-commerce sales the company actively promoted the development of new grain retail formats such as “Internet +Grain” and “Community Automatic Selling Grain Supply Centers”. It has already had the B2C Grain and OilNetwork Direct Selling Platform “Doximi .com” and has opened on-line sales channels on Tmall Jingdong Mall
and other e-commerce platforms to promote the online and offline deep integration of e-commerce platforms. In
terms of catering and distribution the company has set up a distribution service platform for prepared food of
grain oil and food materials serving terminal customers such as chain catering and canteen. In terms of food andoil trading services the grain bulk commodity trading platform-”SZCH Grain Trading Network” built by the
Company can effectively integrate the flow of commercial logistics and information improve the efficiency of
circulation; and provides quality services such as purchase and sales logistics quality inspection and transaction
information to the buyers and suppliers to improve the economic efficiency.
3. Research and development technology advantages
The company attaches great importance to transforming and upgrading the traditional industries by modern
technologies and actively introduces a new generation of information technologies such as internet of things
cloud computing big data and mobile internet into grain management. It takes the lead in promoting the
construction of “standardization mechanization informationization and harmlessness” of warehouse management
in the industry independently develops “grain logistics information system” (Shenliang GLS) applies RFID
technology and slip sheet equipment introduces intelligent robots and upgrades the grain depot operation
efficiency and management efficiency. The company has undertaken a number of national-level research projects
and multiple IT project results have won national provincial and municipal awards. More than 30 information
systems have been developed and run normally. As of now the company has 90 patents applied and obtained and
owes 23 software copyrights.
4. Quality advantages
The company has established a quality control system that has been recognized by large international food and
beverage enterprises. it gives full play to the advantages of products channels brands warehousing quality
inspection etc. and truly provides good quality and safety products for the society. In the grain and oil business
the company’s subordinate enterprise Shenliang Quality Inspection has the leading grain quality testing
technology and equipment in the domestic grain industry and has been officially incorporated into the nationalgrain quality supervision and testing system and has been awarded the “Guangdong Shenzhen National GrainQuality Monitoring Station” by the State Administration of Grain. And obtained the qualification certificate
(CMA) for testing and inspection institutions and it is the first among domestic peers to include pesticide residues
heavy metal pollutants mycotoxins and other hygienic indicators and taste value indicators in daily testing
indicators and has the detection ability of four types of indicators such as grain regular quality storage quality
hygiene and eating quality which can meet the relevant quality inspection requirements of grain and oil products
and can accurately analyze the nutritional ingredients and hygienic index of grain and determine its storage quality
and eating quality.Section IV. Discussion and Analysis of the Operation
I. Introduction
During the reporting period the sudden novel coronavirus epidemic brought unprecedented severe challenges to
the company. The company made every effort to promote the start of production ensure the supply and
coordinate the prevention and control of the epidemic and its operation and management. In accordance with the
annual key work and strategic planning goals the company took the reorganization and subsequent integration
and the reshaping of the company's strategy as the starting point and end point of operation and management and
well completed the semi-annual goals and tasks.
1. Main business development
During the reporting period based on its own advantages and industrial development the company used
information technology to broaden product supply channels and transaction methods. Through the integration of
resources the company enhanced the synergistic effect of the industrial chain to create a new pattern in the grain
oil and food industry. The company continued to focus on the main business of grain and oil and achieved steady
development in main business by actively improving the supply chain extending the industrial chain upgrading
the value chain and completing grain and oil supply services with quality and quantity.
2. Key projects
During the reporting period the company focused on the strategy of “smart grain oil and food supply chainquality service providers” and promoted the construction and operation of grain logistics nodes projects and
achieved the strategic goals for the first half of the year. The grain logistics and terminal supporting project of
SZCG Dongguan Grain Logistics Node Project the CDE warehouse project the food deep processing project and
the first-phase terminal project have all been basically completed. The Northeast Grain Source Base Project has
accelerated the construction of the second phase project of the Grain Source Base. The 150000-ton storage main
project of the first phase of the Northeast Grain Source Base Project has been officially put into use.
3. Continuous innovation and development
The company has formed an innovative R&D system centered on the SZCG Research Institute with the key
supports of SYDATA Flour Company Product R&D Center Doximi Quality Inspection R&D Department SZCG
Reserve Branch Technology Center and Tea Product and Technology R&D Center. Up to now the company has
applied for and obtained a total of 90 patents and owns 23 software copyrights.
During the reporting period the company ensured the sustainable and healthy development of the company by
increasing the application of informatization innovation results and enhancing the efficiency of operation and
management.
4. Other key tasks
(1) During the reporting period continue to improve corporate governance. In accordance with the new regulatory
requirements and relevant regulations and procedures the company completed the combination and revision of
the internal systems and further enhanced the management effectiveness of the company through various effective
measures.
(2) During the reporting period the preparation of the "14th Five-Year" strategic plan was initiated. On the
premise of conscientiously implementing the goals and tasks of the "13th Five-Year Plan" the company combined
with its actual conditions closely focused on the "dual-zone driving effect" formulated the company's "14th
Five-Year Plan" work plan and scientifically proposed the development goals work ideas and key tasks of "14th
Five-Year Plan" period.
(3) During the reporting period the company continued to launch new products. Doximi has developed a
high-quality formula rice "Black-faced Spoonbill"; Flour Company has launched a series of special flours for new
products such as bread steamed bread and moon cakes.
(4) During the reporting period the company actively fulfilled its social responsibilities. The company helped
fight the epidemic by donating 5.1 million yuan to Hubei; implemented the policy of reducing rents and fees and
reducing or exempting rents totaling more than 16.5 million yuan for tenants who meet the requirements .
(5) During the reporting period the company implemented the main responsibility for production safety.
Resolutely implemented various safety requirements in place and achieved five "0"s for production safety
accidents food safety accidents fire safety accidents personal injury accidents and environmental pollution
accidents.In first half of 2020 the company achieved a total operating income of 4740428200 yuan a decrease of 0.87%
over the same period of the previous year; operating profit of 218523000 yuan a decrease of 7.15% over the
same period of the previous year; net profit attributable to shareholders of listed companies was 210738700 yuan
an increase of 3.73% from a year earlier.II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Operation”
Y-o-y changes of main financial data
In RMB
Current period
Same period of last
year
Y-o-y
increase/dec
rease
Reasons for changes
Operation revenue 4740428222.10 4782167732.69 -0.87%
Operation cost 4219403828.80 4262101770.62 -1.00%
Sales expenses 109796698.11 112553742.74 -2.45%
Management expenses 101838460.53 101397947.99 0.43%
Financial expenses 6155212.61 8519731.85 -27.75%
Income tax expense 2465268.63 15485294.03 -84.08%
Mainly due to the change of deferred
income tax expenses
R&D investment 7368772.68 4211474.91 74.97%
Strengthen R&D and more investment
occurred.Net cash flow arising
from operation
activities
9610361.15 -389429629.75 102.47%
In first half of the year received the
government service revenue in
advance the net amount of operation
cash flow growth on a y-o-y basis
Net cash flow arising
from investment
activities
-70334070.80 -140751694.07 50.03%
Mainly due to the change of investment
in financial products and the amount
for purchasing fixed assets are declined
from a year earlier then the net
out-flow of cash from investment
activities declined on a y-o-y basis
Net cash flow arising
from financing
activities
19387290.61 88425677.74 -78.08%
Mainly because the cash dividend
distributed in the period higher than
that of last period and change of the
bank borrowings makes the net in-flow
of cash from financing activities
declined on a y-o-y basis
Net increase of cash
and cash equivalent -41317771.47 -441723854.29 90.65%
Mainly due to the y-o-y change of cash
flow from operation activities
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitute of operation income
In RMB
Current period Same period last year
Increase/decrease
y-o-y (+-)Amount
Ratio in operation
income
Amount
Ratio in operation
income
Total operation
income
4740428222.10 100% 4782167732.69 100% -0.87%
According to industries
Wholesale and
retail
4082124009.24 86.11% 4044141582.04 84.56% 0.94%
Leasing and
commercial
services
417157357.85 8.80% 424934488.32 8.89% -1.83%
Manufacturing 241146855.01 5.09% 313091662.33 6.55% -22.98%
According to products
Grain and oil
trading and
processing
4229578137.45 89.22% 4192557805.77 87.68% 0.88%
Grain and oil
storage logistics
and services
377567473.64 7.96% 370753088.68 7.75% 1.84%
Food & beverage
and tea processing
93692726.80 1.98% 164675438.60 3.44% -43.10%
Leasing and others 39589884.21 0.84% 54181399.64 1.13% -26.93%
According to region
Domestic market 4721086070.54 99.59% 4759541751.29 99.53% -0.81%
Exportation 19342151.56 0.41% 22625981.40 0.47% -14.51%
About the industries products or regions accounting for over 10% of the Company’s operating income or operating profit
√ Applicable □Not applicable
In RMB
Operating income Operating cost
Gross
profit
ratio
Increase/decrea
se of operating
income y-o-y
Increase/decrea
se of operating
cost y-o-y
Increase/decrea
se of gross
profit ratio
y-o-y
According to industries
Wholesale and
retail
4082124009.24 3887968979.28 4.76% 0.94% 0.20% 0.70%
According to products
Grain and oil
trading and
processing
4229578137.45 4025765438.00 4.82% 0.88% 0.12% 0.72%
According to region
Domestic market 4721086070.54 4203620880.07 10.96% -0.81% -1.01% 0.09%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main business based on
latest one year’s scope of period-end
□ Applicable √Not applicable
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √Not applicable
III. Analysis of the non-main business
√ Applicable □ Not applicable
In RMB
Amount Ratio in total profit Causes
Whether be
sustainable
Investment
income
10249064.30 4.77% Unsustainable
Gains/losses of
fair value
variation
-572784.42 -0.27% Unsustainable
Asset impairment -95290043.04 -44.38%
Accrual of the reserve for falling
prices of goods in stock. When selling
the goods with falling prices accrual
the actual carrying forward of the
reserves will be used to offset the
current cost
Unsustainable
Non-operating
income
1358799.58 0.63% Unsustainable
Non-operating
expense
5186666.30 2.42% Unsustainable
Credit
impairment
1791966.35 0.83% Unsustainable
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of current period End of period of last year Ratio
changes
Notes of major changes
Amount Ratio in Amount Ratio in
total
assets
total
assets
Monetary fund 113636986.38 1.62% 189914485.39 2.95% -1.33%
Account
receivable
185328954.02 2.64% 617831167.71 9.60% -6.96%
The government service revenue
for the whole year are received in
advance in the period receivables
declined over that of
period-begin than the ratio in
total assets declined from a year
earlier
Inventory 3447047574.38 49.04% 3053593314.19 47.47% 1.57%
Investment
property
261371418.35 3.72% 278173249.83 4.32% -0.60%
Long-term
equity
investment
71565377.48 1.02% 73362651.19 1.14% -0.12%
Fix assets 1081579471.16 15.39% 967835524.07 15.05% 0.34%
The food processing project of
Shenliang Dongguan grain
logistics nodes was completed
and put into operation which was
transferred to fixed assets from
construction in progress then the
fixed assets increased over that of
period-begin the ratio in total
assets increased from a year
earlier
Construction in
process
749918300.15 10.67% 403629287.82 6.27% 4.40%
The project of Shenliang
Dongguan grain logistics nodes
and Shuangyashan grain source
base project are put into operation
makes the construction in process
increased then the ratio in total
assets increased from a year
earlier
Short-term
loans
271271250.10 3.86% 30590000.00 0.48% 3.38%
Due to the temporary fund
demand in the Period short-term
bank borrowing increased
compared with the period-begin
ratio in total assets increased from
a year earlier
Long-term 859432044.98 12.23% 777384100.20 12.09% 0.14%
The bank long-term borrowings
for Shenliang Dongguan grain
loans logistics nodes are increased at
end of period ratio in total assets
increased on a y-o-y basis
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
In RMB
Items
Opening
amount
Changes of
fair value
gains/losses
in this period
Accumulativ
e changes of
fair value
reckoned
into equity
Devaluati
on of
withdrawi
ng in the
period
Amou
nt of
purcha
se in
the
period
Amo
unt
of
sale
in the
perio
d
Other
chang
es
Ending
amount
Financial assets
1. Trading financial
assets (excluding
derivative financial
assets)
1166209.72 -572784.42 593425.30
Other non-current
financial assets
57500.00 57500.00
Aforementioned total 1223709.72 -572784.42 650925.30
Financial liabilities 0.00 0.00
Content of other changes
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
Item Ending book value
(RMB)
Reasons for restriction
Intangible assets 34717752.71According to the loan contract Yue DG 2017 NGDZ No. 006 signed by
Dongguan Food Industry Park and Bank of Communications Co. Ltd.
Dongguan Branch Dongguan Food Industry Park mortgaged two pieces of
land “DFGY (2009) DT No. 190” and “DFGY (2012) DT No. 152” to
Bank of Communications Co. Ltd. Dongguan Branch as collateral for the
loan.Intangible assets 36189251.93According to the long-term loan mortgage contract signed by Dongguan
Logistics a subsidiary of the Company and Dongguan branch of
Agricultural Development Bank Dongguan Logistics mortgaged the land
“Yue (2016) Dongguan Real Estate Property No. 0028527” of Jingang (S)
Road Zhangpeng Village Machong Town Dongguan City to Dongguan
branch of Agricultural Development Bank as collateral for the loan.Total 70907004.64
V. Investment Analysis
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (Yuan)
Investment in the same period of last
year (Yuan)
Changes (+-)
107920927.79 244767336.46 -55.91%
2.The major equity investment obtained in the reporting period
□Applicable √Not applicable
3.The major non-equity investment carrying in the reporting period
√ Applicable □Not applicable
In RMB
Item
Invest
ment
ways
Whethe
r it is
the
fixed
assets
invest
ment
(Y/N)
Indust
ry
with
the
invest
ment
involv
ed
Amou
nt
input
in the
period
Accu
mulate
d
actual
input
as of
the
end of
reporti
ng
period
Capita
l
source
s
Progr
ess
Estim
ated
reven
ue
Inco
me
accu
mulat
ed at
end
of the
report
ing
perio
d
Reaso
ns for
failur
e to
achie
ve
plann
ed
progr
ess
and
expec
ted
benef
its
Discl
osure
date
(if
applic
able)
Discl
osure
index
(if
applic
able)
Dongguan
Shenliang
Logistics
Co. Ltd.-
Self-bu
ild
Y
Storag
e and
wharf
15017
763.1
5
38314
9414.
35
Owne
d
Funds
and
95.79
%
The
wharf
proje
ct
Grain
storage and
wharf
complement
ary
engineering
Bank
Loans
starte
d
produ
ction
later
than
expec
ted
Dongguan
Shenliang
Logistics
Co.
Ltd.-Grain
storage and
wharf
complement
ary
engineering
(Phase II)
Self-bu
ild
Y
Storag
e and
wharf
0.00
17967
9302.
57
Owne
d
Funds
and
Bank
Loans
100.0
0%
4680
0000
.00
2747
3192
.06
-
Dongguan
Shenliang
Logistics
Co.
Ltd.-Food
logistics and
wharf
matching
project
Self-bu
ild
Y
Wareh
ouse
logisti
c
9770
458.02
56920
692.9
3
Owne
d
Funds
and
Bank
Loans
11.57
%
Adjus
tment
of
constr
uctio
n
sche
me
Dongguan
International
Food
Industrial
Park
Developmen
t Co. Ltd.-
Warehouse
logistic
distribution
center
Self-bu
ild
Y
Wareh
ouse
logisti
c
56009
233.9
7
68572
3081.
58
Owne
d
Funds
and
Bank
Loans
70.77
%
Adjus
tment
of
constr
uctio
n
sche
me
Dongguan
Shenliang
Oil & Food
Trade Co.Self-bu
ild
Y
Flour
proces
sing
28727
2.65
12035
2801.
02
Owne
d
Funds
and
41.22
%
3900
000.
00
-816
2637
.00
-
Ltd.- Food
processing
project
Bank
Loans
Land use
right
Self-bu
ild
N
Constr
uction
24399
7060.
82
Owne
d
Funds
-
Total -- -- --
81084
727.7
9
1669
82235
3.27
-- --
5070
0000
.00
1931
0555
.06
-- -- --
4.Financial assets measured by fair value
√ Applicable□Not applicable
In RMB
Assets
type
Initial
investme
nt cost
Gain/loss of
changes in fair
value
Cumulative
changes of
fair value
reckoned in
equity
Amount
purchased
in the
Period
Amount
sold in
the
Period
Cumula
tive
investm
ent
income
Amount at
period-end
Capital Source
Stock 0.00 -572784.42 0.00 0.00 0.00 0.00 593425.30
Debt
rescheduled
shares
Other 57500.00 0.00 0.00 0.00 0.00 0.00 57500.00
The legal
person’s
shares
purchased
from former
STAQ trading
system
Total 57500.00 -572784.42 0.00 0.00 0.00 0.00 650925.30 --
5. Financial assets investment
(1) Securities investment
√ Applicable□Not applicable
Vari
ety
of
secu
rities
Code
of
securiti
es
Short
form
of
securit
ies
Initial
invest
ment
cost
Acco
unting
measu
remen
t
Book
value
at the
begin
ning
of the
Gain/l
oss of
chang
es in
fair
Cumu
lative
chang
es of
fair
value
Amou
nt
purch
ased
in the
Perio
Amou
nt
sold
in the
Perio
Profit
and
loss
in the
Repor
ting
Book
value
at the
end of
the
period
Acco
unting
subjec
t
Capita
l
Sourc
e
model period value recko
ned in
equity
d d Perio
d
Dom
estic
and
over
seas
stoc
k
000017
CBC-
A
0.00
Fair
value
measu
remen
ts
1166
209.7
2
-572
784.4
2
0.00 0.00 0.00
-5727
84.42
5934
25.30
Trada
ble
financ
ial
assets
Debt
resche
duled
shares
Total 0.00 --
1166
209.7
2
-572
784.4
2
0.00 0.00 0.00
-5727
84.42
5934
25.30
-- --
Disclosure date of
securities investment
approval of the Board
Not applicable
Disclosure date of
securities investment
approval of the
Shareholder Meeting (if
applicable)
Not applicable
(2) Derivative investment
□ Applicable √Not applicable
The Company has no derivatives investment in the Period
VI. 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
VII. 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
Company Type Main Register Total Net assets Operating Operatin Net profit
name business capital assets income g profit
Shenzhen
Cereals
Group Co.Ltd
Subsidia
ry
Grain & oil
trading
processingG
rain and oil
service
153000000
0.00
6595315
654.29
3556850
090.21
4645373
970.50
246515
043.18
245379912.
25
Shenzhen
Hualian
Grain and
Oil Trading
Co. Ltd.
Subsidia
ry
Grain & oil
trading
31180000.0
0
1160190
600.16
19393433
7.86
1552436
650.25
391648
93.82
38988713.4
6
Shenzhen
Flour Co.
Ltd
Subsidia
ry
Grain & oil
trading
processing
30000000.0
0
1206438
998.43
90663532
.00
1372032
179.25
266531
39.51
27224759.2
7
Particular about subsidiaries obtained or disposed in report 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 and
supply of military grain; 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 was 1530000000.00 Yuan. Ended as this period total assets
amounted as 6595315654.29 Yuan and net assets amounting to 3556850090.21 Yuan shareholders’ equity attributable to parent
Company is3366577406.94 Yuan; in the reporting period achieved operation income net profit and net profit attributable to
shareholder of parent Company as 4645373970.50 Yuan 245379912.25 Yuan and 243572209.91 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 was 31180000.00 Yuan. Ended as this
period total assets amounted as 1160190600.16 Yuan and net assets amounting to 193934337.86 Yuan shareholders’ equity
attributable to parent Company is 170575845.14 Yuan;in the reporting period achieved operation income net profit and net profit
attributable to parent Company as 1552436650.25 Yuan 38988713.46 Yuan and 39080493.87 Yuan respectively.Shenzhen Flour Co. Ltd: business scope: general business items: hardware and electrical equipment chemical products (excluding
hazardous chemicals and restricted items) auto parts purchase and sales of construction materials; self-operated import and export
business (carry out according to the provisions of the registration certificate SMGDZZ No. 76); domestic trade (excluding franchise
exclusive control monopoly commodities); wheat wholesale and retail. Licensed business items: following items shall be operated
only with the relevant examination and approval documents if they are involved in obtaining approval: flour processing and
production. Register capital was 30000000.00 Yuan. Ended as this period total assets amounted as 1206438998.43 Yuan and net
assets amounting to 90663532.00 Yuan shareholders’ equity attributable to parent Company is 90663532.00 Yuan;in the reporting
period achieved operation income net profit and net profit attributable to parent Company as 1372032179.25 Yuan 27224759.27
Yuan and 27224759.27 Yuan respectively.VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2020
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
In 2020 the novel coronavirus pneumonia epidemic has been spreading worldwide which has already caused an impact on the
global economy and international trade and industrial supply chains have been affected. In response to possible market and business
risks on the one hand the company has made overall plans for the year's procurement and actively expanded procurement channels
to ensure sufficient grain supply and orderly supply. On the other hand the company has continued to strengthen communication
with upstream and downstream customers in the industry chain vigorously expand sales channels focus on customer needs deepen
brand and service enhance the company's brand value and competitiveness and minimize the impact of the epidemic on the
company.Section V. Important Events
I. Annual General Meeting and extraordinary shareholders general meeting held in this
period
1. AGM in the period
Sessions Type
Investor
participati
on (%)
Opening date Disclosure date Disclosure index
The First Interim
Shareholders
General Meeting
of 2020
Interim
Shareholders
General Meeting
72.05% 2020-01-16 2020-01-17
Resolution Notice of The First
Interim Shareholders General
Meeting of 2020 of Shenzhen
Cereals Holdings Co. Ltd. (Notice
No.: 2020-01) released on Juchao
website dated 17 Jan. 2020
2019 Annual
general meeting
Annual general
meeting
72.03% 2020-05-19 2020-05-20
Resolution Notice of AGM 2019 of
Shenzhen Cereals Holdings Co.Ltd. (Notice No.: 2020-15) released
on Juchao website dated 20 May
2019
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company plans not to carried out distribution of cash dividend bonus shares and share converted from capital reserve either for
the half year
III. Commitments completed in Period and those without completed till end of the Period
from actual controller shareholders related parties purchaser and companies etc.
□ Applicable √ Not applicable
There are no commitments completed in Period and those without completed till end of the Period from actual controller
shareholders related parties purchaser and companies etc.IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √No
The financial report has not been audited
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD for “Qualified Opinion” of last year
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in end of this period
VIII. Lawsuits
Significant lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits and arbitration occurred in the reporting period
Other lawsuits
√ Applicable □ Not applicable
Lawsuits (arbitration)
Amount
involved
(in 10
thousand
Yuan)
Resulted an accrual
liability (Y/N)
Progress
Trial result and
influence
Execution of
judgment
Disclo
sure
date
Disclo
sure
index
As of the second
quarter of 2020 the
litigation matters
mainly including:
Disputes over sales
contract
principal-agent
7675.24
No the event is related
to routine operation of
the Company with
minor amount. Judging
from the progress of the
case relevant litigation
do not constitute a
Relevant
litigation-related
matters are executed
by legal dept. Of the
Company and external
laws firms. The
matters will litigation
Judging from
the litigation it
does not have a
significant
impact on the
Company
In processing
Not
applic
able
contract disputes
infringement disputes
loan contract disputes
and so on
significant impact on the
Company
involved are carry out
the promotion
according to relevant
process currently.IX. Media questioning
□Applicable √Not applicable
During the reporting period the company had no media generally questioned matters.
X. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XI. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XII. 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.XIII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction occurred in the period with routine operation concerned
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 at period
3. Related transaction of foreign investment
□ Applicable √ Not applicable
No related transaction of foreign investment occurred at period
4. Related credits and liabilities
□ Applicable √ Not applicable
No related credits and liabilities occurred in period
5. Other major related transaction
□ Applicable √ Not applicable
No other major related transaction in the Period
XIV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.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 Period
2. Major Guarantee
√ Applicable □ Not applicable
(1) Guarantee
In 10 thousand Yuan
The company and its subsidiaries' external guarantees (not including guarantees to subsidiaries)
Name of the
Company
guaranteed
Related
Announc
ement
disclosur
e date
Guarante
e limit
Actual date of
happening
Actual
guarantee
limit
Guarantee
type
Guarantee
term
Comple
te
implem
entation
or not
Guaran
tee for
related
party
Guarantee between the Company and subsidiary
Name of the
Company
guaranteed
Related
Announc
ement
disclosur
e date
Guarante
e limit
Actual date of
happening
Actual
guarantee
limit
Guarantee
type
Guarantee
term
Comple
te
implem
entation
or not
Guaran
tee for
related
party
Guarantee between the subsidiaries
Name of the
Company
guaranteed
Related
Announc
ement
disclosur
e date
Guarante
e limit
Actual date of
happening
Actual
guarantee
limit
Guarantee
type
Guarantee
term
Comple
te
implem
entation
or not
Guaran
tee for
related
party
Dongguan
Shenliang
Logistics Co.Ltd.
27300 2015-07-13 19083 8-year N Y
Dongguan
Shenliang
Logistics Co.Ltd.
10200 2016-12-21 4052 5-year N Y
Dongguan
International
Food Industrial
Park
Development
Co. Ltd.
39168 2018-07-27 27213 14-year N Y
Dongguan
Shenliang
Logistics Co.Ltd.
21930 2019-01-25 1721 12-year N Y
Dongguan
Shenliang Oil &
Food Trade Co.
11883 2019-04-19 4775 8-year N Y
Ltd.Total amount of approving
guarantee for subsidiaries in
report period (C1)
0
Total amount of actual
occurred guarantee for
subsidiaries in report period
(C2)
1423
Total amount of approved
guarantee for subsidiaries at
the end of reporting period
(C3)
110481
Total balance of actual
guarantee for subsidiaries at
the end of reporting period
(C4)
56844
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of approving
guarantee in report period
(A1+B1+C1)
0
Total amount of actual
occurred guarantee in report
period (A2+B2+C3)
1423
Total amount of approved
guarantee at the end of report
period (A3+B3+C2)
110481
Total balance of actual
guarantee at the end of
report period (A4+B4+C4)
56844
The proportion of the total amount of actually guarantee in
the net assets of the Company (that is A4+ B4+C4) 12.92%
Including:
Amount of guarantee for shareholders actual controller and
its related parties (D) 0
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or
indirectly (E)
39168
Proportion of total amount of guarantee in net assets of the
Company exceed 50% (F) 0
Total amount of the aforesaid three guarantees (D+E+F) 39168
Explanation on compound guarantee
(2) Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee in the period
3. Trust financing
√ Applicable □ Not applicable
In 10 thousand Yuan
Type Capital sources Amount occurred Outstanding balance Overdue amount
Bank financial
products
Own funds 92500 31000 0
Total 92500 31000 0
Details of the single major amount or high-risk trust investment with low security poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XVI. Social responsibility
1. Major environment protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
No
The company and its subsidiaries do not belong to the key pollutant discharge units announced by the environmental protection
department.
2. Execution of social responsibility of targeted poverty alleviation
(1) Plan of targeted poverty alleviation
2020 is the ending year of decisive battle to overcome poverty and win a comprehensive well-off Shenzhen Cereals Holdings
continues to use the socialism with Chinese characteristics of Xi Jinping new era of as a guidein accordance with spirit of the
document of “Implementation Opinions on the Three-Year Plan for Poverty Alleviation in the New Period (Yuefa [2016] No. 13)” of
the Guangdong Provincial Party Committee and the Provincial Government and carried out the target poverty alleviation and relief
work for Guilin Village Yidu Town Longchuang County Heyuan City. The overall goal and task of Guilin Village's targeted poverty
alleviation in 2020 is to: consolidated to ensure that 52 households with 142 people who have been lifted out of poverty have "two no
worries and three guarantees" improved the living environment increased the income of poor families and raised the livable
happiness index. In 2020 under the correct leadership of the Party Committee of SZCH the village-resident-team of SZCH has
implemented detailed epidemic prevention and control work and carried out poverty alleviation tasks in an orderly manner and
taken multiple measures to open up income channels for poor households to consolidate and improve poverty alleviation
achievements and ensure that the fight against the epidemic and the poor are grasped with both hands and both are not missed and
win a comprehensive victory in the fight against poverty with the first demonstration standard.
(2) Summary of semi-annual targeted poverty alleviation
In the first half of 2020 Shenzhen Cereals Holdings invested 428700 yuan in poverty alleviation funds (not including consolation
money and goods and materials) and the introduction of special poverty alleviation funds of 380000 yuan from the deep river
headquarters. The funds are mainly used for the construction of public service facilities in Guilin Village improving the rural living
environment and increasing the income of the village collective and the poor.Performance and aid effectiveness: Firstly solidly promoted consumption poverty alleviation activities. Took consumption poverty
alleviation actions as the starting point organized and mobilized all parties in the society to actively participate in consumption
poverty alleviation. Popularized and promoted the poverty alleviation product Guilin Tea through the "Zhen Poverty Alleviation"
online e-commerce platform and offline channels and jointly launched the "First Secretary Endorsement" activity with local TV
stations to establish the brand image of "Guilin Tea" enhanced the brand awareness of poverty alleviation products and expanded
the tea sales for poor households. Secondly consolidated the "company + cooperative + farmer + base" industrial assistance model to
ensure that poor households increase production and income. Introduced a special poverty alleviation fund of 380000 yuan to invest
in Nanyuewang Company a leading local tea company and distributed dividends of 38000 yuan each year to increase the income of
the village collective and poor households. Thirdly in terms of medical education ensured that the economically disadvantaged
villagers of Guilin Village participated in the new rural cooperative medical insurance provided subsidies for major illnesses of poor
households and organized fund-raising totaling 32000 yuan to reduce the burden of treatment for poor households and prevent their
return to poverty due to illness. Fourthly strengthened teaching aid activities and purchased school supplies for students in Guilin
primary school. Fifthly in terms of public service facilities and infrastructure 380000 yuan was invested to purchase office
equipment in the newly-built villager service center and to build a water purification pond to ensure safe drinking water for villagers.
(3) Performance of targeted poverty alleviation
Target
Measurement
unit
Numbers/ implementation
i. Overall —— ——
Including:1. fund
10 thousand
yuan
42.87
2. Material discount
10 thousand
yuan
8.66
3.number of poverty-stricken populations eliminating
poverty with card for archives established
Person 142
ii. Invested by specific project —— ——
1.Industrial development poverty —— ——
Including: 1.1Type —— Other
1.2 numbers of industrial development poverty Number 0
1.3Amount input
10 thousand
yuan
0
1.4number of poverty-stricken population eliminating
poverty with card for archives established
Person 0
2.Transfer employment —— ——
Including: 2.1 Amount input for vocation skills training
10 thousand
yuan
0
2.2 Number of vocation skills training Person-time 0
2.3 Number of poverty-stricken populations achieving
employment with card for archives established
Person 0
3.Relocation the poor —— ——
Including: 3.1 Number of employed persons from relocated
households
Person 0
4.Education poverty —— ——
Including: 4.1 Amount input for subsidizing the impoverished
students
10 thousand
yuan
0
4.2Number of subsidized poor student s Person 0
4.3Amount input for improving the education resources in
poverty-stricken areas
10 thousand
yuan
0.42
5.Health poverty alleviation —— ——
Including: 5.1 Amount input for medical and health resources in
poverty-stricken areas
10 thousand
yuan
0.3
6.Ecological protection and poverty alleviation —— ——
Including: 6.1 Type ——
Carry out ecological protection and
construction
6.2Amount input
10 thousand
yuan
1.08
7.Fallback protection —— ——
Including: 7.1 Amount input for Three Stay Behind persons
10 thousand
yuan
0
7.2Number of Three Stay Behind persons help Person 0
7.3Amount input for poor disabled persons
10 thousand
yuan
0
7.4Number of poor disabled persons help Person 0
8.Social poverty alleviation —— ——
Including: 8.1Amount of the poverty alleviation cooperation between
the Eastern and Western regions
10 thousand
yuan
0
8.2Amount for targeted poverty alleviation
10 thousand
yuan
0
8.3Amount for the poverty alleviation public welfare fund
10 thousand
yuan
0
9.Other —— ——
Including: 9.1. number of items Number 4
9.2. Amount input
10 thousand
yuan
41.07
9.3. number of poverty-stricken populations eliminating
poverty with card for archives established
Person 142
iii. Awards (content and grade) —— ——
(4) Follow-up of targeted poverty alleviation
2020 is the final year of the fight against poverty. SZCH will continue to follow Xi Jinping’s new era of socialism with Chinese
characteristics as the guiding ideology implement the latest poverty alleviation policies of governments at all levels strictly follow
the requirements do various poverty alleviation work and scientifically plan and deploy to promote industrial development improve
the living environment increase the economic income of the poor and consolidate the effect of poverty alleviation. The first is to
consolidate and implement the "two no worries three guarantees" policy pay close attention to the situation of poor households and
prevent return to poverty due to illness; the second is to take innovation measures to promote consumption poverty alleviation
explore and expand various sales channels to help sell Guilin tea; the third is to continue to invest in tea industry projects implement
the dividends of the invested industry projects increase income for village collectives and poor households and consolidate results;
the fourth is to invest in infrastructure construction and living environment improvement projects repair village-level roads and
construct sewage outfalls to improve the quality of human living; the fifth is to help Guilin tea leave the village and enter the city
enhance brand awareness and promote local tea industry development through media promotion and exhibition promotion; the sixth
is to do a good job of linking "precise poverty alleviation" and "rural revitalization" in an all-round way and implement the results of
assistance.XVII. Other major events
√ Applicable □ Not applicable
1. Changes of directors supervisors and senior executive
(1) The company held the eighth session of the tenth board of directors on February 28 2020 which reviewed and approved the
"Proposal on Appointment of the Company's Deputy General Manager" and agreed to appoint Mr. Xiao Hui as the company's deputy
general manager with term of office from the date of approval of the board meeting to the expiration of the company's tenth board of
directors. For details please refer to the "Announcement on Resolutions of the Eighth Session of the Company's Tenth Board of
Directors" and "Announcement on the Appointment of Deputy General Managers of the Company" published on www.cninfo.com.cn
on February 29 2020. .
(2) The company received written resignation reports from the Deputy General Manager Mr. Cao Xuelin and the Board Secretary Mr.
Du Jianguo on June 18 2020. Due to job transfer Mr. Cao Xuelin applied for resignation from the position of deputy general
manager and Mr. Du Jianguo applied for resignation from the secretary of the company's board of directors. For details please refer
to the "Announcement on the Resignation of Senior Executives of the Company" published on www.cninfo.com.cn on June 19 2020.XVIII. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in shares
In Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
A mount Proportion
New
shares
issued
Bonus
shares
Capitaliz
ation of
public
reserve
Others
Subtot
al
A mount Proportion
I. Restricted shares 684569567 59.40% 0 0 0 31575 31575 684601142 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 31575 31575 31575 0.00%
Including: Domestic legal
person’s shares 0 0.00% 0 0 0 0 0 0 0.00%
Domestic nature
person’s shares 0 0.00% 0 0 0 31575 31575 31575 0.00%
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 share 0 0.00% 0 0 0 0 0 0 0.00%
II. Un-restricted shares 467965687 40.60% 0 0 0
-3157
5
-3157
5
467934112 40.60%
1. RMB common shares 416216407 36.11% 0 0 0
-3157
5
-3157
5
416184832 36.11%
2. Domestically listed
foreign shares 51749280 4.49% 0 0 0 0 0 51749280 4.49%
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 1152535254 100.00% 0 0 0 0 0 1152535254 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√ Applicable □Not applicable
In Share
Shareholders’
name
Number of
shares
restricted at
Period-begin
Number of
shares released
in the Year
Number of new
shares
restricted in the
Year
Number of
shares
restricted at
Period-end
Restriction
reasons
Released date
Ye Qingyun 0 0 31575 31575
Executives
lock-in stocks
-
Total 0 0 31575 31575 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders and particulars about shares holding
In Share
Total common stock
shareholders in reporting
period-end
63329
Total preference shareholders
with voting rights recovered at
end of reporting period (if
applicable) (found in note8)
0
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Full name of Shareholders Nature ofshareholder
Proporti
on of
shares
held
Total common
shares hold at
the end of
report period
Changes
in report
period
Amount of
restricted
common
shares held
Amount of
un-restricted
common
shares held
Number of
share
pledged/frozen
State Amount
of
share
Shenzhen Food Group Co. Ltd.State-owned
legal person
63.79% 735237253 0 669184735 66052518
Shenzhen Agricultural Products
Group Co. Ltd
State-owned
legal person
8.23% 94832294 0 15384832 79447462
Hong Kong Securities Clearing
Company Limited
Foreign
legal person
0.53% 6057114 5200188 0 6057114
Lin Junbo
Domestic
nature
person
0.30% 3500000 1015550 0 3500000
Shanghai Ruiting Asset
Management Co.Ltd.-Shanghai Ruiting Better
Life No. 2 Private Equity
Investment Fund
Other 0.30% 3442929 3442929 0 3442929
Sun Huiming
Domestic
nature
person
0.30% 3436462 0 0 3436462
Gao Lizhi
Domestic
nature
person
0.19% 2204400 2204400 0 2204400
Hu Xiangzhu
Domestic
nature
person
0.18% 2079000 -721000 0 2079000
Central Huijin Asset
Management Co. Ltd.State-owned
legal person
0.13% 1472625 0 0 1472625
Zhang Jianmin
Domestic
nature
person
0.11% 1272039 1272039 0 1272039
Strategy investors or general corporation
comes top 10 common shareholders due to
rights issue (if applicable) (see note 3)
N/A
Explanation on associated relationship among
the aforesaid shareholders
Shenzhen SASAC directly holds 100% equity of Fude Capital and holds 34% of
Agricultural Products indirectly through Fude Capital; the Company was not aware
of any related relationship between other shareholders above and whether they
belonged to parties acting in concert as defined by the Acquisition Management
Method of Listed Company.Particular about top ten common shareholders with un-restrict shares held
Shareholders’ name Amount of un-restrict common shares held at Type of shares
Period-end Type Amount
Shenzhen Agricultural Products Group Co.Ltd
79447462
RMB common
shares
79447462
Shenzhen Food Group Co. Ltd. 66052518
RMB common
shares
66052518
Hong Kong Securities Clearing Company
Limited
6057114
RMB common
shares
6057114
Lin Junbo 3500000
RMB common
shares
3500000
Shanghai Ruiting Asset Management Co.Ltd.-Shanghai Ruiting Better Life No. 2
Private Equity Investment Fund
3442929
RMB common
shares
3442929
Sun Huiming 3436462
Domestically
listed foreign
shares
3436462
Gao Lizhi 2204400
RMB common
shares
2204400
Hu Xiangzhu 2079000
RMB common
shares
2079000
Central Huijin Asset Management Co. Ltd. 1472625
RMB common
shares
1472625
Zhang Jianmin 1272039
RMB common
shares
1272039
Expiation on associated relationship or
consistent actors within the top 10 un-restrict
shareholders and between top 10 un-restrict
shareholders and top 10 shareholders
Shenzhen SASAC directly holds 100% equity of Fude Capital and holds 34% of
Agricultural Products indirectly through Fude Capital; the Company was not aware
of any related relationship between other shareholders above and whether they
belonged to parties acting in concert as defined by the Acquisition Management
Method of Listed Company.
Explanation on top 10 shareholders involving
margin business (if applicable) (see note 4)
1. Shareholder - Shanghai Ruiting Asset Management Co. Ltd.-Shanghai Ruiting
Better Life No. 2 Private Equity Investment Fund holds 3442929 shares of the
Company under customer credit trading secured securities account through
Everbright Securities Co. Ltd. common account holds 0 shares and 3442929
shares are held in total at end of the Period. During the reporting period the credit
trading secured securities account has 3442929 shares increased and no change in
the common account shares held are increased 3442929 shares in total.
2. Shareholder Zhang Jianmin holds 1272039 shares of the Company under
customer credit trading secured securities account through China Galaxy Securities
Co. Ltd. common account holds 0 shares and 1272039 shares are held by Zhang
in total at end of the Period. During the reporting period the credit trading secured
securities account has 1272039 shares increased and no change in the common
account shares held by Zhang are increased 1272039 shares in total.Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.IV. Change of controlling shareholder or actual controller
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
The Company had no changes of actual controller in reporting period
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.Section IX. Particulars about Directors Supervisor and Senior
Executives
I. Changes of shares held by directors supervisors and senior executives
□ Applicable √ Not applicable
No change of shares held by directors supervisors and senior executives found more details in Annual Report 2019.II. Changes of directors supervisors and senior executives
√ Applicable □ Not applicable
Name Position Type Date Causes
Xiao Hui Deputy GM Appointment 2020-02-28 Appointment of the Board of Directors
Cao Xuelin Deputy GM Dismiss 2020-06-18 Job transfer
Du Jianguo
Secretary of
the Board
Dismiss 2020-06-18 Job transfer
Section X. Corporate Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
Section XI. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by SHENZHEN CEREALS HOLDINGS CO. LTD.
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 113636986.38 154954757.85
Settlement provisions
Capital lent
Tradable financial assets 593425.30 1166209.72
Derivative financial assets
Note receivable 642379.62 1909720.38
Account receivable 185328954.02 338687766.68
Receivable financing
Accounts paid in advance 33657139.19 9202930.71
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 28304818.99 25758695.07
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 3447047574.38 3064701212.14
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 406438818.52 468174380.40
Total current assets 4215650096.40 4064555672.95
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 71565377.48 73361312.10
Investment in other equity
instrument
Other non-current financial
assets
57500.00 57500.00
Investment real estate 261371418.35 269704937.17
Fixed assets 1081579471.16 945042032.69
Construction in progress 749918300.15 771971469.43
Productive biological asset 392540.38 397386.56
Oil and gas asset
Right-of-use assets
Intangible assets 583935178.98 589167059.47
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
22833050.69 19855228.69
Deferred income tax asset 39553014.09 39082710.96
Other non-current asset 1871965.84 1871965.84
Total non-current asset 2813077817.12 2710511602.91
Total assets 7028727913.52 6775067275.86
Current liabilities:
Short-term loans 271271250.10 23595000.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 173070931.77 266123470.98
Accounts received in advance 344495262.68 137211832.00
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 169772163.54 195076576.55
Taxes payable 19314465.25 37047613.47
Other account payable 378610103.19 236377171.13
Including: Interest payable 802489.86 1411457.29
Dividend payable 2933690.04 2933690.04
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due
within one year
71800514.64 67420012.16
Other current liabilities 684034.12 219151968.63
Total current liabilities 1429018725.29 1182003644.92
Non-current liabilities:
Insurance contract reserve
Long-term loans 859432044.98 835912556.41
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable 15990925.48 15856950.01
Long-term wages payable
Accrual liability 3500000.00 3500000.00
Deferred income 104725906.00 101792241.31
Deferred income tax liabilities 12356893.67 12563752.22
Other non-current liabilities
Total non-current liabilities 996005770.13 969625499.95
Total liabilities 2425024495.42 2151629144.87
Owner’s equity:
Share capital 1152535254.00 1152535254.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 1422892729.36 1422892729.36
Less: Inventory shares
Other comprehensive income
Reasonable reserve 522.55
Surplus public reserve 350187601.06 350187601.06
Provision of general risk
Retained profit 1475366715.92 1495135080.60
Total owner’ s equity attributable to
parent company
4400982300.34 4420751187.57
Minority interests 202721117.76 202686943.42
Total owner’ s equity 4603703418.10 4623438130.99
Total liabilities and owner’ s equity 7028727913.52 6775067275.86
Legal Representative: Zhu Junming
Person in charge of accounting works: Jin Zhenyuan
Person in charge of accounting institute: Wen Jieyu
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 10994054.21 16272394.90
Trading financial assets 593425.30 1166209.72
Derivative financial assets
Note receivable
Account receivable 92783.85 7967.34
Receivable financing
Accounts paid in advance
Other account receivable 1242937209.15 994149247.39
Including: Interest receivable
Dividend
receivable
650000000.00 260000000.00
Inventories 2921434.85 2954343.26
Contractual assets
Assets held for sale
Non-current assets maturing
within one year
Other current assets 11352140.49 675966.29
Total current assets 1268891047.85 1015226128.90
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 3713214425.09 3715425854.77
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 17222299.21 17458094.37
Fixed assets 31050928.00 31382741.25
Construction in progress
Productive biological assets 392540.38 397386.56
Oil and natural gas assets
Right-of-use assets
Intangible assets 11002823.85 6787359.94
Research and development costs
Goodwill
Long-term deferred expenses 320531.61 380772.60
Deferred income tax assets
Other non-current assets
Total non-current assets 3773203548.14 3771832209.49
Total assets 5042094595.99 4787058338.39
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 115458.38 115458.38
Accounts received in advance 3137.80 3137.80
Contractual liability
Wage payable 19545073.44 17230138.89
Taxes payable 2870803.52 2607719.37
Other accounts payable 379465816.41 257459190.14
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 402000289.55 277415644.58
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 3500000.00
Deferred income 44466.04 45020.68
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 3544466.04 3545020.68
Total liabilities 405544755.59 280960665.26
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 77783172.92 77783172.92
Retained profit 388124845.21 257672677.94
Total owner’s equity 4636549840.40 4506097673.13
Total liabilities and owner’s equity 5042094595.99 4787058338.39
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 4740428222.10 4782167732.69
Including: Operating income 4740428222.10 4782167732.69
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4448897391.27 4495390182.31
Including: Operating cost 4219403828.80 4262101770.62
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 4334418.54 6605514.20
Sales expense 109796698.11 112553742.74
Administrative expense 101838460.53 101397947.99
R&D expense 7368772.68 4211474.91
Financial expense 6155212.61 8519731.85
Including: Interest
expenses
7410693.33 10087784.34
Interest
income
1735133.50 2185171.96
Add: other income 10824560.17 5463876.60
Investment income (Loss is
listed with “-”)
10249064.30 7167936.04
Including: Investment
income on affiliated company and joint
venture
366989.43 3413100.95
The termination of
income recognition for financial assets
measured by amortized cost(Loss is
listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging
income (Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
-572784.42 28381.21
Loss of credit impairment
(Loss is listed with “-”)
1791966.35 5143559.77
Losses of devaluation of
asset (Loss is listed with “-”)
-95290043.04 -69231423.42
Income from assets disposal -10598.38 -4184.59
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
“-”)
218522995.81 235345695.99
Add: Non-operating income 1358799.58 362252.46
Less: Non-operating expense 5186666.30 3982019.95
IV. Total profit (Loss is listed with “-”) 214695129.09 231725928.50
Less: Income tax expense 2465268.63 15485294.03
V. Net profit (Net loss is listed with
“-”)
212229860.46 216240634.47
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
212229860.46 216240634.47
2.termination of net profit (netloss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to
owner’s of parent company
210738686.12 203168850.61
2.Minority shareholders’ gains
and losses
1491174.34 13071783.86
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 212229860.46 216240634.47
Total comprehensive income
attributable to owners of parent
Company
210738686.12 203168850.61
Total comprehensive income
attributable to minority shareholders
1491174.34 13071783.86
VIII. Earnings per share:
(i) Basic earnings per share 0.1828 0.1763
(ii) Diluted earnings per share 0.1828 0.1763
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
realized 0 Yuan at last period for combined party.Legal Representative: Zhu Junming
Person in charge of accounting works: Jin Zhenyuan
Person in charge of accounting institute: Wen Jieyu
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 191007.09 31562730.23
Less: Operating cost 250130.28 29829293.00
Taxes and surcharge 115899.05 252634.47
Sales expenses 1557.53 293450.97
Administration expenses 27299132.94 21614585.82
R&D expenses
Financial expenses -137521.80 -532360.14
Including: interest
expenses
Interest income 131202.58
Add: other income 994791.02 1253598.63
Investment income (Loss is
listed with “-”)
392812575.88 1432614.92
Including: Investment
income on affiliated Company and
joint venture
-48505.63 -135033.88
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 “-”)
-572784.42 28381.21
Loss of credit impairment
(Loss is listed with “-”)
-204763.50 -204340.76
Losses of devaluation of
asset (Loss is listed with “-”)
409117.45
Income on disposal of
assets (Loss is listed with “-”)
II. Operating profit (Loss is listed
with “-”)
365691628.07 -16975502.44
Add: Non-operating income 357590.00
Less: Non-operating expense 5090000.00
III. Total Profit (Loss is listed with
“-”)
360959218.07 -16975502.44
Less: Income tax 58289.47
IV. Net profit (Net loss is listed with
“-”)
360959218.07 -17033791.91
(i)continuous operating netprofit (net loss listed with ‘-”)
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other
comprehensive income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive
income items which will be
reclassified subsequently to profit or
loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 360959218.07 -17033791.91
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
4851380535.76 4570303860.45
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 2634408.13 341886.74
Other cash received concerning
operating activities
440707293.21 187051727.97
Subtotal of cash inflow arising from
operating activities
5294722237.10 4757697475.16
Cash paid for purchasing
commodities and receiving labor
service
4653349386.89 4737315792.15
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest
commission charge and commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers
149264002.51 117107205.65
Taxes paid 37068103.68 36670126.83
Other cash paid concerning
operating activities
445430382.87 256033980.28
Subtotal of cash outflow arising from
operating activities
5285111875.95 5147127104.91
Net cash flows arising from operating
activities
9610361.15 -389429629.75
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
464500000.00 376000000.00
Cash received from investment
income
7544998.92 3281912.85
Net cash received from disposal
of fixed intangible and other
long-term assets
19988.32 5225078.07
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
337500.00
Subtotal of cash inflow from
investing activities
472402487.24 384506990.92
Cash paid for purchasing fixed
intangible and other long-term assets
156742240.20 279258684.99
Cash paid for investment 385000000.00 246000000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
994317.84
Subtotal of cash outflow from
investing activities
542736558.04 525258684.99
Net cash flows arising from investing
activities
-70334070.80 -140751694.07
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
17150000.00
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
17150000.00
Cash received from loans 833803914.65 275167400.91
Other cash received concerning
financing activities
Subtotal of cash inflow from
financing activities
833803914.65 292317400.91
Cash paid for settling debts 558227673.50 70544523.73
Cash paid for dividend and
profit distributing or interest paying
256130248.31 133274201.72
Including: Dividend and profit
of minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
58702.23 72997.72
Subtotal of cash outflow from 814416624.04 203891723.17
financing activities
Net cash flows arising from financing
activities
19387290.61 88425677.74
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
18647.57 31791.79
V. Net increase of cash and cash
equivalents
-41317771.47 -441723854.29
Add: Balance of cash and cash
equivalents at the period -begin
154954757.85 631638339.68
VI. Balance of cash and cash
equivalents at the period -end
113636986.38 189914485.39
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
124032.00 74116410.44
Write-back of tax received 103987.33 336964.29
Other cash received concerning
operating activities
279260229.55 138446106.95
Subtotal of cash inflow arising from
operating activities
279488248.88 212899481.68
Cash paid for purchasing
commodities and receiving labor
service
12742.23 67845729.08
Cash paid to/for staff and
workers
15199812.23 14152467.36
Taxes paid 1392555.04 1160654.10
Other cash paid concerning
operating activities
27911182.13 199823754.56
Subtotal of cash outflow arising from
operating activities
44516291.63 282982605.10
Net cash flows arising from operating
activities
234971957.25 -70083123.42
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
24500000.00 266000000.00
Cash received from investment
income
524005.56 1567648.80
Net cash received from disposal
of fixed intangible and other
long-term assets
2710.37
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
337500.00
Subtotal of cash inflow from
investing activities
25361505.56 267570359.17
Cash paid for purchasing fixed
intangible and other long-term assets
5054670.76 483680.00
Cash paid for investment 30000000.00 246000000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from
investing activities
35054670.76 246483680.00
Net cash flows arising from investing
activities
-9693165.20 21086679.17
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from
financing activities
Cash paid for settling debts
Cash paid for dividend and
profit distributing or interest paying
230507050.80 115253525.40
Other cash paid concerning
financing activities
58702.23 72997.72
Subtotal of cash outflow from
financing activities
230565753.03 115326523.12
Net cash flows arising from financing
activities
-230565753.03 -115326523.12
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
8620.29 90359.07
V. Net increase of cash and cash
equivalents
-5278340.69 -164232608.30
Add: Balance of cash and cash
equivalents at the period -begin
16272394.90 168900586.84
VI. Balance of cash and cash
equivalents at the period -end
10994054.21 4667978.54
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Item
2020 semi-annual
Owners’ equity attributable to the parent Company
Min
ority
inter
ests
Tota
l
own
ers’
equit
y
Sha
re
cap
ital
Other
equity
instrument
Capi
tal
reser
ve
Less
:
Inve
ntor
y
shar
es
Othe
r
com
preh
ensi
ve
inco
me
Reas
onab
le
reser
ve
Surp
lus
reser
ve
Prov
ision
of
gene
ral
risk
Reta
ined
profi
t
Othe
r
Subt
otal
Pre
fer
red
sto
ck
Per
pet
ual
cap
ital
sec
urit
ies
Ot
her
I. Balance at
the end of the
last year
11
52
535
25
4.0
0
142
289
272
9.36
522.
55
350
187
601.
06
149
513
508
0.60
442
075
118
7.57
202
686
943.
42
462
343
813
0.99
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the beginning
of this year
11
52
535
25
4.0
0
142
289
272
9.36
522.
55
350
187
601.
06
149
513
508
0.60
442
075
118
7.57
202
686
943.
42
462
343
813
0.99
III. Increase/
Decrease in
this year
(Decrease is
listed with
“-”)
-522
.55
-19
768
364.
68
-19
768
887.
23
341
74.3
4
-19
734
712.
89
(i) Total
comprehensiv
e income
210
738
686.
12
210
738
686.
12
149
117
4.34
212
229
860.
46
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
-230
507
-230
507
-14
570
-231
964
050.
80
050.
80
00.0
0
050.
80
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general
risk
provisions
3.
Distribution
for owners (or
shareholders)
-230
507
050.
80
-230
507
050.
80
-14
570
00.0
0
-231
964
050.
80
4. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(V)
Reasonable
reserve
-522
.55
-522
.55
-522
.55
1. Withdrawal
in the report
period
574
618.
41
574
618.
41
574
618.
41
2. Usage in
the report
period
575
140.
96
575
140.
96
575
140.
96
(VI)Others
IV. Balance at
the end of the
report period
11
52
535
25
4.0
0
142
289
272
9.36
350
187
601.
06
147
536
671
5.92
440
098
230
0.34
202
721
117.
76
460
370
341
8.10
Last Period
In RMB
Item
2019 semi-annual
Owners’ equity attributable to the parent Company
Mino
rity
intere
sts
Total
owne
rs’
equit
y
Sha
re
cap
ital
Other
equity
instrument
Capi
tal
reser
ve
Less
:
Inve
ntor
y
shar
es
Othe
r
com
preh
ensi
ve
inco
me
Reas
onab
le
reser
ve
Surp
lus
reser
ve
Prov
ision
of
gene
ral
risk
Reta
ined
profi
t
Othe
r
Subt
otal
Pr
efe
rre
d
sto
ck
Pe
rpe
tua
l
ca
pit
al
sec
uri
tie
s
Oth
er
I. Balance at
the end of the
last year
11
52
535
25
4.0
0
142
289
272
9.36
154.
21
327
140
910.
28
126
993
348
7.26
417
250
253
5.11
1650
9629
6.47
4337
598
831.5
8
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Enterprise
combine
under the
same
control
Other
II. Balance at
the beginning
of this year
11
52
535
25
4.0
0
142
289
272
9.36
154.
21
327
140
910.
28
126
993
348
7.26
417
250
253
5.11
1650
9629
6.47
4337
598
831.5
8
III. Increase/
Decrease in
this year
(Decrease is
listed with
“-”)
622
55.3
5
879
153
25.2
1
879
775
80.5
6
3022
1783
.85
1181
9936
4.41
(i) Total
comprehensi
ve income
203
168
850.
61
203
168
850.
61
1307
1783
.85
2162
4063
4.46
(ii) Owners’
devoted and
decreased
capital
1715
0000
.00
1715
0000
.00
1.Common
shares
invested by
shareholders
1715
0000
.00
1715
0000
.00
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners
equity with
share-based
payment
4. Other
(III) Profit
distribution
-115
253
525.
40
-115
253
525
.40
-115
2535
25.40
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution
for owners
(or
shareholders)
-115
253
525.
40
-115
253
525
.40
-115
2535
25.40
4. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3.
Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings
from other
comprehensi
ve income
6. Other
(V)
Reasonable
reserve
622
55.3
5
622
55.3
5
6225
5.35
1.
Withdrawal
in the report
period
460
394.
34
460
394.
34
4603
94.34
2. Usage in
the report
period
398
138.
99
398
138.
99
3981
38.99
(VI)Others
IV. Balance
at the end of
the report
period
11
52
535
25
4.0
0
142
289
272
9.36
624
09.5
6
327
140
910.
28
135
784
881
2.47
426
048
011
5.67
1953
1808
0.32
4455
798
195.9
9
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item
2020 semi-annual
Share
capit
al
Other equity
instrument
Capita
l
public
reserv
e
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserv
e
Surplu
s
reserv
e
Retai
ned
profi
t
Other
Total
owners’
equity
Prefe
rred
stock
Perp
etual
capit
al
secur
ities
Othe
r
I. Balance at
the end of the
last year
1152
535
254.0
0
3018
10656
8.27
77783
172.9
2
257
672
677.
94
450609
7673.13
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year
1152
535
254.0
3018
10656
8.27
77783
172.9
2
257
672
677.
450609
7673.13
0 94
III. Increase/
Decrease in
this year
(Decrease is
listed with “-”)
130
452
167.
27
130452
167.27
(i) Total
comprehensive
income
360
959
218.
07
360959
218.07
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
-230
507
050.
80
-230507
050.80
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
-230
507
050.
80
-230507
050.80
3. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
1152
535
254.0
0
3018
10656
8.27
77783
172.9
2
388
124
845.
21
463654
9840.40
Last Period
In RMB
Item
2019 semi-annual
Shar
e
capit
al
Other equity
instrument
Capit
al
public
reserv
e
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reason
able
reserve
Surpl
us
reserv
e
Retaine
d profit
Other
Total
owners’
equity
Pref
erre
d
stoc
k
Perp
etual
capit
al
secu
ritie
s
Othe
r
I. Balance at
the end of the
last year
115
253
525
4.00
3018
1065
68.27
5473
6482
.14
16550
5986.3
1
439088
4290.72
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Other
II. Balance at
the beginning
of this year
115
253
525
4.00
3018
1065
68.27
5473
6482
.14
16550
5986.3
1
439088
4290.72
III. Increase/
Decrease in
this year
(Decrease is
listed with
“-”)
-13228
7317.3
1
-132287
317.31
(i) Total
comprehensiv
e income
-17033
791.91
-170337
91.91
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
-11525
3525.4
-115253
525.40
0
1.
Withdrawal
of surplus
reserves
2.
Distribution
for owners
(or
shareholders)
-11525
3525.4
0
-115253
525.40
3. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(V)
Reasonable
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
(VI)Others
IV. Balance at
the end of the
report period
115
253
525
4.00
3018
1065
68.27
5473
6482
.14
33218
669.00
425859
6973.41
III. Basic situation of Company
Shenzhen Cereals Holdings Co. Ltd. (formerly the Shenzhen Shenbao Industrial Co. Ltd. hereinafter referred to
as “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 1 August 1991.Then with the approval (Document (1991)No.126) from
People’s Bank of China the Company began to list on Shenzhen Stock Exchange. The Company belongs to the
grain oil food and beverage industry.
As of 30 June 2020 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: general operating items:
Purchase and sales of grain and oil grain & oil reserves; operation and processing of grain & oil products;
production of tea tea products tea and natural plant extract canned foods beverages and native products
(business license of the production place shall be separately applied for); feed management and processing
(outsourcing); investment operation and development of grain & oil logistics feed logistics and tea garden etc.;
sales of feed and tea; warehousing services; food circulation services; modern food supply chain services;
technology development and services of grain & oil tea plant products soft drinks and foods; construction of
E-commerce and information IT development and supporting services; industrial investment (specific items will
be declared separately); domestic trade; operating the import and export business; engaged in real estate
development and operation on the lands where the right-to-use has been legally acquired; development operation
leasing and management of the own property; property management; providing management services to
hotels.(items mentioned above which are involved in approval from national laws administrative regulations and
decision of the state council must be submitted for examination and approval before operation ). Licensed
business item: wholesale of prepackaged food (excluding reheating prepackaged food) (in non-physical way);
information service (internet information service only); general freight professional transportation (refrigeration
and fresh-keeping). Parent enterprise of the Company: Shenzhen Food Group Co. Ltd.; actual controller of the
Company: Assets Supervision and Administration Commission of Shenzhen municipal People’s Government.
The financial statement has been approved by BOD of the company for reporting on 24August 2020.Up to 30 June 2020 the subsidiaries included in consolidate financial statement mainly including:
Subsidiary
Type Level
Shareholding ratio
(%)
Voti
ng
right
s
ratio
(%)
Shenzhen Shenbao Huacheng Technology Co.Ltd. (hereinafter referred to as Shenbao
Huacheng )
Wholly-owned
subsidiary
First
grade
100 100
Wuyuan Ju Fang Yong Tea Industry Co. Ltd.(hereinafter referred to as Wuyuan Ju Fang
Yong )
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenbao Sanjing Food and Beverage
Development Co. Ltd.(hereinafter referred to as
Shenbao Sanjing )
Wholly-owned
subsidiary
First
grade
100 100
Huizhou Shenbao Technology Co.Ltd(hereinafter referred to as Huizhou Shenbao
Technology )
Wholly-owned
subsidiary
First
grade
100 100
Shenzhen Shenbao Property Management Co.Ltd(hereinafter referred to as Shenbao
Property )
Wholly-owned
subsidiary
First
grade
100 100
Shenzhen Shenbao Industrial & Trading Co.Ltd(hereinafter referred to as Shenbao
Industrial & Trading)
Wholly-owned
subsidiary
First
grade
100 100
Hangzhou Ju Fang Yong Holding Co.Ltd(hereinafter referred to as Hangzhou Ju Fang
Yong)
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenbao Technology Center Co.Ltd(hereinafter referred to as Shenbao
Technology Center)
Wholly-owned
subsidiary
First
grade
100 100
Shenzhen Shenshenbao Investment Co.Ltd.(hereinafter referred to as Shenbao
Investment)
Wholly-owned
subsidiary
First
grade
100 100
Yunnan Shenbao Pu’er Tea Supply Chain
Management Co. Ltd(hereinafter referred to as
Pu’er Tea Supply Chain )
Wholly-owned
subsidiary
Second
grade
100 100
Huizhou Shenbao Food Co. Ltd(hereinafter
referred to as Huizhou Shenbao Food )
Wholly-owned
subsidiary
Second
grade
100 100
Yunnan Pu’er Tea Trading Center Co.Ltd( hereinafter referred to as Pu’er Tea Trading
Cente)
Controlling
subsidiary
Second
grade
55 55
Mount Wuyi Shenbao Rock Tea Co.Ltd( hereinafter referred to as Shenbao Rock
Tea)
Wholly-owned
subsidiary
Second
grade
100 100
Hangzhou Fuhaitang Tea Ecological
Technology Co. Ltd(hereinafter referred to as
Fuhaitang Ecological)
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenshenbao Tea Culture
Management Co. Ltd(hereinafter referred to as
Shenshenbao Tea Culture)
Wholly-owned
subsidiary
Second
grade
100 100
Hangzhou Ju Fang Yong Trading Co. Ltd.(hereinafter referred to as Ju Fang Yong
Trading)
Controlling
subsidiary
Third
grade
60 60
Shenzhen Shenbao Tea-Shop Co.Ltd(hereinafter referred to as Shenbao
Tea-Shop)
Wholly-owned
subsidiary
Second
grade
100 100
Hangzhou Fuhaitang Catering Management
chain Co. Ltd(hereinafter referred to as
Fuhaitang Catering )
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Cereals Group Co. Ltd( hereinafter
referred to as SZCG)
Wholly-owned
subsidiary
First
grade
100 100
Shenzhen Flour Co. Ltd( hereinafter referred to
as Shenzhen Flour )
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Hualian Grain and Oil Trading Co.Ltd.( hereinafter referred to as Hualian
Company)
Wholly-owned
subsidiary
Second
grade
100 100
Hainan Haitian Aquatic Feed Co.Ltd(hereinafter referred to as Hainan Haitian )
Wholly-owned
subsidiary
Second
grade
100 100
Shenliang Quality Inspection Co. Ltd.( hereinafter referred to as Shenliang Quality
Inspection )
Wholly-owned
subsidiary
Second
grade
100 100
Shenliang Doximi Business Co. Ltd.( hereinafter referred to as Doximi )
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenliang Cold Chain Logistics Co.Ltd.( hereinafter referred to as Shenliang Cold
Chain )
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenliang Big Kitchen Food Supply
Chain Co. Ltd( hereinafter referred to as Big
Kitchen )
Controlling
subsidiary
Second
grade
70 70
Shenzhen Shenliang Property Development Co.Ltd.( hereinafter referred to as Shenliang
Property)
Wholly-owned
subsidiary
Second
grade
100 100
Shenzhen Shenliang Property Management Co. Wholly-owned Third 100 100
Ltd. (hereinafter referred to as Shenliang
Property)
subsidiary grade
Shenliang Storage (Yingkou) Co.Ltd(hereinafter referred to as Shenliang Storage
(Yingkou) )
Wholly-owned
subsidiary
Third
grade
100 100
Dongguan Shenliang Logistics Co.
Ltd.( hereinafter referred to as Dongguan
Logistics)
Controlling
subsidiary
Second
grade
51 51
Dongguan International Food Industrial Park
Development Co. Ltd.( hereinafter referred to
as Dongguan Food Industrial Park)
Controlling
subsidiary
Third
grade
51 51
Dongguan Shenliang Oil & Food Trade Co.
Ltd. (hereinafter referred to as Dongguan Food
Trade)
Controlling
subsidiary
Third
grade
51 51
Dongguan Jinying Biology Tech. Co. Ltd.
(hereinafter referred to as Dongguan Jinying)
Controlling
subsidiary
Third
grade
51 51
Shuangyashan Shenliang Zhongxin Cereals
Base Co. Ltd(hereinafter referred to as
Shuangyashan Shenliang Zhongxin )
Controlling
subsidiary
Third
grade
51 51
Heilongjiang Hongxinglong Nongken Shenxin
Cereals Industrial Park Co. ltd.
(hereinafter referred to as Hongxinglong
Nongken Industrial Park)
Controlling
subsidiary
Fourth
grade
51 51
Change of the consolidate scope found more in Note VIII. Change of consolidate scope and Note IX. Equity in other entity
IV. Basis of preparation of financial statements
1. Basis of preparation
Based on going concern and according to actual occurrence of transactions and issues the Company prepared the
financial statement 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
2. Going concern
The Company was evaluated on continued viability of 12 months for the reporting period and found to have no
significant doubt. Accordingly the financial statements have been prepared on the basis of going concern
assumptions.V. Major accounting policy accounting estimation
Specific accounting policies and estimation attention:
N/A
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 30 June 2020 as well as the consolidate and parent company’s operational
results and cash flow for first half year of 2020.
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 was 12 months
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
Business combination under the same control: The assets and liabilities the Company acquired in a business
combination shall be measured in accordance with book value of assets liabilities (including the ultimate
controlling party of goodwill acquired by the merging parties and the formation of) stated in combined financial
report of the ultimate controlling party on the merger date. The net book value of assets and the payment of the
merger consideration in the merger book value (or nominal value of shares issued) shall be adjusted in the share
premium of reserve capital. the share premium in capital reserve is not enough for deducting retained earnings .
Business combination not under the same control: Assets paid and liabilities taken for business combination on
the acquisition date shall be measured at fair value. The difference between the fair value and book value is
recognized in profit or loss. Goodwill is realized by the Company as for the difference between the combination
cost and the fair value of the recognizable net assets of the acquiree acquired by acquirer in such business
combination. In case that the above cost is less than the above fair value even with re-review then the difference
shall be recorded in current gains and losses.The directed expenses incurred in the business combination are recorded into current gains/losses; the trading fees
for issuing equity securities or debt securities for the business combination shall be recorded into the initial
confirmation amount of equity securities or debt securities.
6. Methods for preparation of consolidated financial statements
6.1 Consolidated scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control
which includes the Company and all subsidiaries.
6.2 Consolidated procedure
The Company edits the consolidated financial statements based on its own financial statements and the
subsidiaries’ as well as other relevant information. The consolidated financial statements hold the enterprise
group as a whole accounting entity. It is recognized in accordance with relevant Accounting Standards
measurement and presentation requirements. Uniform accounting policies reflect the overall financial position of
the Group's business operating results and cash flow.The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company. For the subsidiaries acquired through business combination under uncommon control financial
statements shall be adjusted based on the fair value of the identifiable net assets on acquiring date. For the
subsidiaries acquired through business combination under common control its assets and liabilities (including
goodwill formed from ultimate controlling party acquiring the subsidiary to) shall be adjusted based on the book
value in the financial statements of the ultimate controlling party.Subsidiary's equity current net profits or losses and current comprehensive income belonging to minority
shareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet item of
net profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of a
subsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation of
balance offset against minority interests.
(1) Increase of subsidiary or business
During the reporting period the merger of the enterprises under the same control results in additional subsidiaries
or business then adjust the opening amount of consolidated balance sheet; income expenses and profit of the
subsidiaries or business from beginning to the end of the reporting shall be included in the consolidated profit
statement; cash flows of the subsidiaries or business from beginning to the end of reporting period shall be
included into the consolidated cash flow statement. And relevant comparative items of comparable statement shall
be adjusted since reporting entity is controlled by the ultimate controller.If additional investment and other reasons can lead investee to be controlled under the same control all parties
shall be adjusted at the beginning when the ultimate controlling party starts control. Equity investments made
before obtaining controlling right relevant gains and losses and other comprehensive income as well as other
changes in net assets confirmed during the latter date between point obtaining original equity and combined party
and combinee under the same control day to the combined day shall be offset against the retained earnings or
profit or loss of the comparative reporting period.
During the reporting period opening amount of consolidated balance sheet shall not be adjusted since enterprise
under different control combine or increase holding of subsidiary or business; the income expense and profit of
the subsidiaries or business from the acquisition date to the end of reporting period shall be included in the
consolidated profit statement; while cash flows shall be included into the consolidated cash flow statement.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additional
investment and other reasons can lead investee to be controlled under the same control. Difference between the
fair value and the book value is recognized as investment income. other comprehensive income and other owners'
equity except for net profit or loss other comprehensive income and the distribution of profits related to equity
held from investee before acquisition date as well as relevant other comprehensive income associated with all
other by changes in equity shall be included in current investment income except for other comprehensive income
arising from change of net assets or net liabilities redefined by investee.
(2) Disposal of subsidiaries or business
① The general approach
During the reporting period the Company carry out disposal of subsidiaries or business revenue expense and
profit of the subsidiary or business included in the consolidated profit statement from the beginning to the disposal
date; while the cash flow into cash flow table.If losing controlling right to investee due to disposal of partial equity the remaining equity after the disposal shall
be re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of the
remaining equity then subtracting net assets held from the former subsidiary from the acquisition date or
combination date initially measured in accordance with original stake and goodwill the difference shall be
included in investment income of the period losing controlling right. other comprehensive income and other
owners' equity except for net profit or loss other comprehensive income and the distribution of profits related to
equity held from investee before acquisition date as well as relevant other comprehensive income associated with
all other by changes in equity shall be included in current investment income except for other comprehensive
income arising from change of net assets or net liabilities redefined by investee.If the Company’s shareholding ratio declines and thus loses the control power due to other investors’ capital
increase in the subsidiaries accounting treatment shall be conducted in accordance with the above principles.② Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right if the terms of the
transaction situation and economic impact subject to one or above of the following conditions usually it indicates
repeated transactions should be accounted for as a package deal:
i. These transactions are made considering at the same time or in the case of mutual impact;
ii. These transactions only reach a complete business results when as a whole;
iii. A transaction occurs depending on the occurrence of at least one other transaction;
iv. Single transaction is not economical but considered together with other transactions it is economical.If disposal of equity in subsidiaries lead the loss of control and the transactions can be seen as a package deal the
Company will take accounting treatment of the transaction; however before the loss of control the difference
between the disposal price and the corresponding net assets of the subsidiary recognized as other comprehensive
income in the consolidated financial statements into current profit and loss at current period when losing
controlling right.If disposal of equity in subsidiaries lead the loss of control and the transactions doesn’t form a package deal
equity held from subsidiary shall be accounted in accordance with relevant rules before losing controlling right
while in accordance with general accounting treatment when losing controlling right.
(3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newly
acquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisition
date (or combination date) initially measured between the consolidated balance sheet adjustment capital balance
of the share premium in the capital reserve share premium insufficient any excess is adjusted to retained earnings.
(4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment without a loss of control due to partial disposal of
subsidiaries and long-term equity investment made between the relative net assets from the purchase date or the
date of merger were initially measured at the difference between the subsidiary shall enjoy the consolidated
balance sheet adjustment in the balance of the share premium capital balance of the share premium insufficient
any excess is adjusted to retained earnings.7. Classification of joint venture arrangement and accounting for joint operations
Joint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint venture party of a joint venture arrangement and enjoys the relevant assets of the
arrangement and bears the liabilities related to the arrangement it is a joint operation.The Company recognizes its proportion of interests in joint operation as related to the Company and accounts for
under relevant business accounting principles:
(1) To recognize separately-held assets and jointly-held assets under its proportion;
(2) To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
(3) To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
(4) To recognize revenue from disposal of the output under the proportion;
(5) To recognize separately occurred expenses and to recognize expenses occurred for joint operations under its
proportion.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement the Company recognized the stock cash and deposits available for payment
at any time as cash and investments featuring with the following four characters at the same time as cash
equivalents: short term (expire within 3 months commencing from purchase day) active liquidity easy to convert
to already-known cash and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
(1) Foreign currency business
The foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convert
the foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate
on the balance sheet date. The resulting exchange differences except that the balance of exchange generated from
the foreign currency special borrowings related to the assets whose acquisition and construction are eligible for
capitalization is disposed in accordance with the principle of borrowing costs capitalization are included in the
current profit and loss.
(2) Conversion of foreign currency financial statements
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; except
for the “undistributed profit” item other items of the owner's equity items are converted at the spot exchange rate
at the time of occurrence. Income and expense items in the income statement are converted at the spot exchange
rate on the transaction date.When disposing an overseas operation the translation difference of the foreign currency financial statements
related to the overseas operation is transferred from the owner's equity items to the disposal of the current profit
and loss.
10. Financial instruments
Financial instruments include financial assets financial liabilities and equity instruments.
(1) Categories of financial instruments
According to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets at initial recognition the Company classifies the financial assets into the financial assets
measured at amortized cost the financial assets(debt instrument) 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 gain or loss.The financial assets of which the business model aims at the collection of contractual cash flow and the
contractual cash flow is only the payment of the principal and the interest based on the outstanding principal
amount are classified as financial assets measured at amortized cost. The financial assets of which the business
model aims not only at the collection of contractual cash flow but also at selling the financial assets and the
contractual cash flow is only the payment of the principal and the interest based on the outstanding principal
amount are classified as financial assets measured at fair value and whose changes are included in other
comprehensive income (debt instruments). Other financial assets other than this are classified as financial assets
measured at fair value and whose changes are included in current profit and loss.
For non-trading equity instrument investment the Company determines whether it is designated as a financial
asset (equity instrument) measured at fair value and whose changes are included in other comprehensive income
at the initial recognition. In the initial recognition in order to eliminate or significantly reduce accounting
mismatches financial assets can be designated as financial assets measured at fair value and whose changes are
included in current profit and loss.In the initial recognition financial liabilities are classified as the financial liabilities measured at fair value and
whose changes are included in current profit and loss and the financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at
fair value and whose changes are included in current profit and loss in the initial measurement:
1) The designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategy specified in the official written document
manage and make performance evaluation of the financial liability portfolio or financial assets and financial
liability portfolio based on fair value and report to the key management personnel based on this.
3) The financial liability includes embedded derivatives that need to be separately split.
(2) Recognition and measurement for financial instrument
1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables
long-term receivables and debt investment which are initially measured at fair value and related transaction
costs are included in the initial recognition amount. The accounts receivable not including major financing
components and the accounts receivable that the Company decides not to consider the financing component of not
more than one year are initially measured at the contract transaction price.Interest calculated by the effective interest method during the holding period is included in the current profit and
loss.When recovering or disposing the difference between the price obtained and the book value of the financial asset
is included in the current profit and loss.
2) Financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
income including receivables financing other debt investment etc. are initially measured at fair value and
related transaction expenses are included in the initial recognition amount. The financial assets are subsequently
measured at fair value the changes in fair value are included in other comprehensive income except for interest
impairment losses or gains and exchange gains and losses calculated by using the effective interest method.When a financial asset is terminated for recognition the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in current profit and loss.
3) Financial assets (equity instruments) measured at fair value and whose changes are included in other
comprehensive income
Financial assets (equity instruments) measured at fair value and whose changes are included in other
comprehensive income including other equity instruments etc. are initially measured at fair value and related
transaction expenses are included in the initially recognized amount. The financial assets are subsequently
measured at fair value and changes in fair value are included in other comprehensive income. The dividends
obtained are included in the current profits and losses.When a financial asset is terminated for recognition the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in retained earnings.
4) Financial assets measured at fair value and whose changes are included in current profit and loss
Financial assets measured at fair value and whose changes are included in current profit and loss including
Tradable financial assets derivative financial assets and other non-current financial assets etc. are initially
measured at fair value and related transaction expenses are included in the initial recognition amount. The
financial assets are subsequently measured at fair value and changes in fair value are recognized in current profit
and loss.
5) Financial liabilities measured at fair value and whose changes are included in current profit and loss
Financial liabilities measured at fair value and whose changes are included in current profit and loss including
transaction financial liabilities derivative financial liabilities etc. are initially measured at fair value and related
transaction expenses are included in current profit and loss. The financial liabilities are subsequently measured at
fair value and changes in fair value are included in current profit and loss.When a financial liability is terminate for recognition the difference between book value and the consideration
paid shall be recorded into the current profit and loss.
6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost including short-term borrowings bills payable accounts payable
other payable long-term borrowings bonds payable and long-term payable are initially measured at fair value
and related transaction expenses are included in the initial recognition amount.Interest calculated by the effective interest method during the holding period is included in the current profit and
loss.When a financial liability is terminate for recognition the difference between the consideration paid and the book
value of the financial liability is included in current profit and loss.
(3) Recognition evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs the Company shall stop recognition of such financial assets if all
risks and remunerations related to ownership of such financial assets have almost been transferred to the
receiver; while shall continue to recognize such financial assets if all risks and remunerations related to
ownership of such financial assets have almost been retained.When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for
transfer of financial assets the Company generally adopts the principle that substance over weighs format.The Company divides such transfer into entire transfer and part transfer. As for the entire transfer meeting
condition for discontinued recognition balance between the following two items is recorded in current gains and
losses:
1) Carrying value of financial assets in transfer;
2) Aggregate of the consideration received from transfer and accumulative movements of fair value originally
recorded in owners’ equity directly (applicable when financial assets involved in transfer belong to financial assets
available for sale).
As for the part transfer meeting condition for discontinued recognition entire carrying value of financial assets in
transfer is shared by discontinued recognition part and continued recognition part in light of their respective fair
value. Balance between the following two items is recorded in current gains and losses:
1)Carrying value of discontinued recognition part;
2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable to
accumulative movements of fair value originally recorded in owners’ equity directly (applicable when financial
assets involved in transfer belong to financial assets (debt instrument) measured at fair value and whose changes
are included in other comprehensive income and the financial assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition for
discontinued recognition. And consideration received is recognized as financial liability.
(4) Condition for terminating the recognition of financial liability
As for the financial liabilities with its whole or part present obligations released the company shall terminate the
recognition for such financial liabilities or part of it. if the company enters into agreement with its creditor to
substitute for the existing financial liabilities by means of assuming new financial liabilities then the company
shall terminate the recognition for the existing financial liabilities and recognized the new financial liabilities
provided that the contract clauses of the new and the existing financial liabilities are different in substance.If the company makes substantial amendment to the whole or part contract clauses of the existing financial
liabilities it shall terminate the recognition for the existing financial liabilities or part of it. Meanwhile the
financial liabilities with amendment to its clauses shall be realized as new financial liabilities.In case of terminate the recognition of financial liabilities in whole or part the difference between the carrying
value of such financial liabilities and consideration paid (including the non-cash assets exchanged or new
financial liabilities assumed) shall be recorded in current gains and losses.In case that the company repurchases part of financial liabilities based on the comparative fair value of the
continuing recognition part and the derecognizing part the company shall allocate the carrying value of the
financial liabilities in whole on the repurchase date. Difference between the carrying value allocated to the
derecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilities
assumed) shall be recorded in current gains and losses.(5) Recognition method for fair value of financial assets and financial liabilities
As for the financial instrument with an active market the fair value is determined by the offer of the active market;
there is no active market for a financial instrument the valuation techniques to determine its fair value. At the
time of valuation the Company adopted applicable in the present case and there is enough available data and
other information technology to support valuation assets or liabilities of feature selection and market participants
in the trading of the underlying asset or liability considered consistent input value and priority as the relevant
observable inputs. Where relevant observable inputs can not get or do not get as far as practicable the use of
un-observable inputs.
(6) Testing of the financial assets impairment and accounting treatment
The Company considers all reasonable and evidence-based information including forward-looking information
and estimates the expected credit losses of the financial assets measured at amortized cost and the financial assets
(debt instruments) measured at fair value and whose changes are included in other comprehensive income on a
single or combination mode. The measurement of expected credit losses depends on whether the credit risks of
financial assets have increased significantly since the initial recognition.If the credit risk of the financial instrument has increased significantly since the initial recognition the Company
measures its loss provision based on the amount equivalent to the expected credit losses for the entire duration of
the financial instrument; if the credit risk of the financial instrument has not increased significantly since the
initial recognition the Company measures its loss provision based on the amount equivalent to the expected credit
losses of the financial instrument in the next 12 months. The increase or reversal amount of the resulting loss
provision is included in the current profit and loss as an impairment loss or gain.Usually if it s overdue for more than 30 days the Company shall believe that the credit risk of the financial
instrument has increased significantly unless there is conclusive evidence that the credit risk of the financial
instrument has not increased significantly since the initial recognition.If the financial instrument's credit risk at the balance sheet date is low the Company shall believe that the credit
risk of the financial instrument has not increased significantly since the initial recognition.If there is objective evidence that a financial asset has suffered credit impairment the Company shall make
provision for impairment of the financial asset on a single basis.The Company needs to confirm that the financial instruments of impairment losses are financial assets (including
receivables) measured at amortized cost debt instrument investments measured at fair value and their changes are
included in other comprehensive income and lease receivables mainly including bills receivable accounts
receivable other receivables Creditors’ investment Other creditors’ investment long-term receivables etc. In
addition for some financial guarantee contracts impairment provision and credit impairment losses should be
accrued in accordance with the accounting policies described in this section. Regarding an account receivable
whether or not it contains a significant financing component the Company always measures its loss provisions in
accordance with the expected credit losses for the entire duration.
For lease receivables long-term receivables formed by the company through the sale of commodities or the
provision of labor services the Company chooses to always measure their loss reserves in accordance with the
expected credit losses for the entire duration.The Company combines account receivables by similar credit risk characteristics based on the financial asset
portfolio structure and similar credit risk characteristics (the debtor’s ability to repay the arrears in accordance
with the contract terms) combined with historical default loss experience and current economic conditions and
considering forward-looking information and measures the loss provision at an amount equivalent to the expected
credit losses for the entire duration.
11.Note receivable
Reference to 10. Financial Instrument in this Section
12.Account receivable
Reference to 10. Financial Instrument in this Section
13. Account receivable financing
Nil
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
Reference to 10. Financial Instrument in this Section
15. Inventory
(1) Classification
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 weighted average or individual valuation method is used when the inventory is issued according to the nature
of the business.(3) Recognition standards of the net realizable value for inventory
The net realizable value of inventory products and materials for sale in normal business production is measured
as the residual value after deducting the estimated sales expense and related taxes and fees from the estimated
selling price; the net realizable value of an item of inventories subject to further processing in normal business
production is measured as the residual value after deducting the sum of the estimated costs of completion sales
expense and related taxes and fees from the estimated selling price of the for-sale item. The net realizable value of
the quantity of inventories held to satisfy firm sales or service contracts is based on the contract price. If the sales
contracts are for less than the inventory quantities held the net realizable value of the excess is based on general
selling prices.
An impairment allowance if any is generally individually recognized for each type of inventories at period-end
except: For an individual impairment allowance if any is recognized for the whole category of inventories of low
value and large quantities; and for an individual impairment allowance if any is recognized for a group of
inventories which are held for the production and sales of products of a single territory and for identical or similar
usages or purposes and which are indistinguishable from other types of inventories within the group.
Except that there is clear evidence indicates that the market price on the balance sheet date is abnormal the net
realizable value of the inventory item is determined based on the market price at the balance sheet date.The net realizable value of the inventory items at the end of the period is determined based on the market price at
the balance sheet date.
(4) Inventory system
Inventory system is the perpetual inventory system.
(5)Amortization of low-value consumables and packaging materials
1) Low-value consumables adopts the method of primary resale;
2) Wrappage adopts the method of primary resale.
16. Contractual asset
17. Contract cost
18. Assets held for sale
Nil
19. Creditors’ investment
Nil
20. Other creditors’ investment
Nil
21. Long-term account receivable
Nil
22. Long-term equity investment
(1) Criteria for judgment of the common control and significant influence
Common control refers to the control that is common to an arrangement in accordance with the relevant
agreement and the relevant activities of the arrangement must be agreed upon by the participants sharing the
control rights before making a decision. Where the Company and other joint venture parties jointly control the
invested entity and have rights to the net assets of the invested entity the invested entity is the joint venture of the
Company.
Significant influence refers to the right to participate in making decisions relating to the financial and operational
policies of an enterprise while not able to control or jointly control (with others) establishment of these policies.If the Company has significant influence on the invested enterprises than such invested enterprises shall be the
joint venture of the Company.
(2) Determination of initial investment cost
1) Long-term equity investment formed by business combination
Business combination under the same control: If the company pays cash transfers non-cash assets or assumes
debts and issues equity securities as the merger consideration the share of the book value of the acquired owner's
equity of the merged party in the consolidated financial statements of the ultimate controlling party is taken as the
initial investment cost of the long-term equity investment on the merger date. If it is possible to exercise control
over the investee under the same control due to additional investment etc. the initial investment cost of the
long-term equity investment shall be determined according to the share of the book value of the net assets of the
merged party in the consolidated financial statements of the ultimate controlling party on the merger date. The
equity premium is adjusted based on the difference between the initial investment cost of the long-term equity
investment on the combination date and the book value of the long-term equity investment before the merger plus
the book value of the new payment consideration for stock further obtained on the merger date if the equity
premium is insufficient to be offset offset the retained earnings.
Business combination not under the same control: The company take the merger cost determined on the purchase
date as the initial investment cost of the long-term equity investment. If it is possible to control the investee under
the same control due to additional investment etc. the initial investment cost calculated by the cost method is
calculated according to the sum of the book value of the original equity investment plus the new investment cost.
2) Long-term equity investment required by other ways
For long-term equity investments obtained through payment with cash then the actual payment shall be viewed as
initial investment cost.
For long-term equity investments obtained through issuance of equity securities then the fair value of such
securities shall be viewed as initial investment cost
When the exchange of non-monetary assets has commercial substance and the fair value of the assets swapped in
or swapped out can be reliably measured the fair value shall be used as the basis for measurement. If the fair
value of the swap-in assets and the swap-out assets can be reliably measured for the long-term equity investment
that is swapped in the fair value of the swap-out assets and the relevant taxes payable shall be used as the initial
investment cost of the long-term equity investment that is swapped in unless there is conclusive evidence that the
fair value of the assets swapped in is more reliable. If the exchange of non-monetary assets does not have
commercial substance or the fair value of the assets swapped in or swapped out cannot be reliably measured for
the long-term equity investments swapped in the book value of the swap-out assets and the relevant taxes and
fees payable shall be used as the initial investment cost of the long-term equity investment.
For long-term equity investment obtained through debt restructuring the entry value is determined by the fair
value of the abandoned creditor's right and the taxes directly attributable to the asset and other cost and the
difference between the fair value of the abandoned creditor's right and the book value is included in current profit
and loss.
(3) Subsequent measurement and recognition of gains and losses
1) Long-term equity investment measured by cost
The long-term equity investment for subsidiary shall be measured by cost.Other than payment actually paid for
obtaining investment or cash dividend or profit included in consideration which has been declared while not
granted yet the Company recognizes investment income according to its share in the cash dividend or profit
declared for grant by the invested unit.
2) Long-term equity investment measured by equity
The Company calculates long term equity investment in associates and joint ventures under equity method. Where
the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of the
investee’s identifiable net assets at the time of acquisition no adjustment is made to the initial investment cost.Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition the difference is recognized in profit or loss for the period.Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income and book value of such investment is
adjusted accordingly. Profit or cash dividends pro rata distributed by the invested company are to minus book
value of the relative long-term investment. Book value of long-term investment is adjusted when changes occur
other than net gains and losses other comprehensive income and profit distribution of the invested company and
is to report in owners’ equity accordingly.The Company should recognized net profit of invested unit after adjustment according to the accounting policy
and period of the Company based on fair value of vary identifiable assets of invested unit while obtained
investment while recognized net profit or net losses of invested units that should be enjoy by investment
enterprise. During the period of holding the investment if the investee prepares the consolidated financial
statement it shall be accounted for a based on the net profit other comprehensive income and the amount
attributable to the investee in changes in the other owner's equity in the consolidated financial statements.The un-realized transaction gains/losses attributable to investment enterprise internally occurred between the
Company affiliated units and joint-ventures should calculated by proportion of shares-holding which should be
offset than recognized investment gains/losses. If the unrealized internal transaction losses with the investee are
assets impairment losses they will be fully recognized. If a transaction of investing or selling assets occurs
between the company and an associate enterprise or joint venture and the assets constitute a business theaccounting treatment shall be handled in accordance with relevant policy policies disclosed in the Notes “V.
Accounting Treatment Methods for Business Combinations Under the Same Control and Not Under the Same
Control” and “VI.Methods for Preparing Combined Financial Statements”.When the Company is confirmed to share losses of the invested units the following order shall prevail for
disposal: first of all offset carrying value of long-term equity investment. Second for long-term equity investment
whose carrying value is not enough for offset investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units to offset
carrying value of long-term items receivable. At last after the aforesaid treatment if enterprise still bears
additional duties according to investment contract or agreement projected liabilities are recognized in accordance
to the obligations which are expected to undertake and then recorded in current gains and losses.
3) Disposal of long-term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
investment shall be included in current period gains and losses.
For long term equity investment under equity method the Company shall adopt the same basis as the investee
directly disposes relevant assets or liabilities when disposing this investment and account for the part originally
included in other comprehensive income under appropriate proportion. The owner's equity recognized as a result
of changes in the owner's equity other than the net profit or loss other comprehensive income and profit
distribution of the investee is carried forward to the current profit and loss in proportion except for other
comprehensive income arising from changes in net liabilities or net assets as the investee re-measures the defined
benefit plans.If the joint control or significant influence on the investee is lost due to the disposal of part of the equity
investment etc. the remaining equity after disposal shall be accounted for according to the recognition and
measurement standard of financial instruments and the difference between the fair value and the book value of
the day losing the joint control or significant impact is included in the current profit and loss. For other
comprehensive income as recognized under equity method in respect of the original equity investment when the
Company ceases calculation under equity method the aforesaid income shall be accounted for on the same basis
as the investee would otherwise adopt when it directly disposes relevant assets or liabilities. The owner's equity
recognized as a result of changes in the owner's equity other than the net profit or loss other comprehensive
income and profit distribution of the investee is carried forward to the current profit and loss when the equity
method is terminated to be used for business accounting.The Company loses the control over the investee due to the decrease in shareholding ratio caused by the disposal
of part of the equity investment or other investors' capital increase in the subsidiary if the remaining equity can
implement joint control or significant influence on the investee it shall be accounted for according to the equity
method when preparing individual financial statements and the remaining equity shall be adjusted as if it was
accounted for according to the equity method since obtained. If the remaining equity cannot implement joint
control or significant influence on the investee it shall be accounted for according to relevant provisions of the
recognition and measurement standard of financial instruments and the difference between the fair value and the
book value on the date of loss of control is included in current profit and loss.The disposed equity is obtained through business combination for reasons such as additional investment in the
preparation of individual financial statement if the remaining equity after disposal is accounted for by using the
cost method or equity method for the equity investment held before the purchase date other comprehensive
income and other owner's equity recognized due to being accounted for by using the equity method are carried
forward on a pro-rata basis; if the remaining equity after disposal is changed to be accounted for according to the
recognition and measurement standard of financial instruments the other comprehensive income and other
owners' equity shall be entirely carried forward.
23. Investment real estate
Measurement
Measured by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation the rented buildings (including the buildings for rent after completion of self-construction or
development activities and the buildings under construction or development for future lease).The Company adopts the cost model for subsequent measurement of investment real estate and depreciates or
amortizes buildings and land use rights based on its estimated service life and net residual value rate. The
estimated service life net residual value rate and annual depreciation (amortization) rate of investment real estate
are listed as follows:
Category Expected service life (year) Expected net salvage
value
Annual amortization
(depreciation) rate
Houses and buildings 10-40 5% 2.37%-9.50%
24. Fixed asset
(1)Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods providing services lease or for
operation & management and have more than one year of service life. Fixed assets should be recognized for qualified the followed
conditions at the same time:
(1) It is probable that the economic benefits associated with the assets will flow into the Company; and
(2) The cost of the assets can be measured reliably.
(2)Depreciation methods
Category Method Years of depreciation Scrap value rate
Yearly depreciation
rate
House and buildings
Production buildings
Straight-line
depreciation
20-35 5 2.71-4.75
Non-production
buildings
Straight-line
depreciation
20-40 5 2.38-4.75
Temporary dormitory
and simple room etc.Straight-line
depreciation
5-15 5 6.33-19.00
Gas storage bin
Straight-line
depreciation
20 5 4.75
Silo
Straight-line
depreciation
50 5 1.90
Wharf and supporting
facilities
Straight-line
depreciation
50 5 1.90
Machinery equipment
Other machinery
equipment
Straight-line
depreciation
10-20 5 4.75-9.50
Warehouse Straight-line 20 5 4.75
transmission
equipment
depreciation
Electronic equipment
Straight-line
depreciation
2-5 5 19.00-47.50
Transport equipment
Straight-line
depreciation
3-10 5 9.50-31.67
Other equipment
Straight-line
depreciation
3-10 5 9.50-31.67
Depreciation of fixed assets is classified and accrued by using the straight-line depreciation and the depreciation
rate is determined according to the type of fixed assets the expected service life and the estimated net residual
value rate. If each component of the fixed assets has different service lives or provides economic benefits to the
enterprise in different ways select different depreciation rates or depreciation methods and the depreciation is
accrued separately.
Fixed assets leased in the form of financial leasing if it is reasonable to be certain that the lessee will obtain the
ownership of the leased asset when the lease term expires the leased asset shall be fully depreciated over its
useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset at the
expiry of the lease term the leased asset shall be fully depreciated over the shorter one of the lease term or its
useful life.
(3) Recognition measurement and depreciation of fixed assets held under finance lease
If any of the following conditions are stipulated in the lease agreement signed by the Company and the lessee it
shall be recognized as a financial leased assets:
1) ownership of the leased assets shall belong to the Company upon the expiration of the lease term;
2) the Company has the option to purchase assets for a purchase price much lower than the fair value of the assets
when the option is exercised;
3) the lease period accounts for most of the service life of the leased assets;
4) there is no significant difference between the present value of the minimum lease payment on the lease
commencement date and the fair value of the assets.On the lease start date the company regards the lower of the fair value of the leased asset and the present value of
the minimum lease payment as the book value of the leased asset and regards the minimum lease payment amount
as the book value of the long-term payable and the difference is regarded as unrecognized financing charges.
25. Construction in progress
Fixed asset is booked with the entire expenditures occurred in the Construction in progress till it arrives at
predicted state for use. For those constructions in process of fixed assets which have already arrived at the
predicted state for use while still with absence of completion settlement they shall be carried forward to fixed
assets at the estimated value based on engineering budget construction cost or actual cost commencing from the
date of arrival of the predicted state for use. Meanwhile they shall be also subject to the depreciation policies
applicable to fixed assets of the Company for provision of depreciation. Once completion settlement is made the
original temporary estimated value shall be adjusted at the effective cost. However the original provision of
depreciation remains unchanged.
26. Borrowing expenses
(1) Recognition of the borrowing expenses capitalization
Borrowing expenses including the amortization of interest discount or premium on borrowing the ancillary
expenses and exchange differences arising from foreign currency borrowings and so on.
Borrowing expenses that attributed for purchasing or construction of assets that are complying start to be
capitalized and counted as relevant assets cost; other borrowing expenses reckoned into current gains and losses
after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed investment real estate etc. which need a
long period of time to purchase construct or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
1) Assets expense occurred and paid as expenses in way of cash non-cash assets transfer or debt with interest
taken for purchasing constructing or manufacturing assets that complying with capitalizing condition;
2) Borrowing expenses have occurred;
3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased
constructed or manufactured.
(2) Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expenses suspended excluded in the period.If purchasing construction or manufacturing process of an asset satisfying the conditions of capitalization
reached its predicted usable status or sale-able status capitalization suspended for borrowing expenses.If purchasing construction or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects borrowing expenses for this kind of assts
shall suspended capitalization.If the assets have been completed in every part but can be reached the useful status or sale-able status while
completed entirely the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
(3) Period of suspended
If purchasing construction or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or for-sale status capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and losses until the purchasing construction or
manufacturing process is resumed for capitalizing.
(4) Capitalization rate of the borrowing costs measurement of the capitalized amount
As for the special loans borrowed for the purchase construction or production of assets eligible for capitalization
the borrowing costs are capitalized by deducting the actual borrowing costs incurred in current period of special
borrowing the interest income earned by borrowing funds that have not ye been used deposited in the bank or the
investment income obtained from the temporary investment.
For the general borrowings used for the acquisition construction or production of assets eligible for capitalization
the amount of borrowing costs that should be capitalized for general borrowings is calculated and determined
according to the weighted average of the asset expenditures of accumulated asset expenditures over the special
borrowings multiplying by the capitalization rate of the occupied general borrowings. The capitalization rate is
determined based on the weighted average interest rate of general borrowings.
27. Biological assets
(1) Criteria for determining the biological assets
Biological assets refers to the assets made up of living animals and plants.
(2) Classification of biological assets
Biological assets are divided into consumptive biological assets productive biological assets and public welfare
biological assets. Consumptive biological assets include biological assets held for sale or harvested as agricultural
products in the future. Productive biological assets include biological assets held for the purpose of producing
agricultural products providing labor services or renting. Public welfare biological assets include biological
assets whose main purpose is protection and environmental protection.
(3) Depreciation policy of productive biological assets
The Company’s biological assets are mainly tea trees. The company’s productive biological assets that achieve the
intended production and operation purposes are depreciated according to the average service life method and the
service life is determined as the remaining period of land use after deducting the immature tea tree period (5
years) the residual value rate is 5%. At the end of each year the company reviews the service life expected net
residual value and depreciation methods. If the service life and expected net output value are different from the
original estimate or there is a significant change in the realization of economic benefits it will be used as an
accounting estimate change to adjust the service life or estimated net output value or change the depreciation
method.
(4) Treatment of impairment of biological assets
If the net realizable value of consumptive biological assets is less than its book value the depreciation of
biological assets shall be made based on the difference between the net realizable value and the book value and
included in the current profit and loss. If the factors affecting the impairment of consumptive biological assets
have disappeared the write-down amount shall be recovered and transferred back within the amount of the
original provision for depreciation and the transferred amount shall be included in the current profit and loss.If the recoverable amount of a productive biological asset is less than its book value the provision for biological
asset impairment shall be made based on the difference between the recoverable amount and the book value and
included in the current profit and loss. Once the provision for impairment of productive biological assets is
accrued it shall not be reversed.There is no provision for impairment of public welfare biological assets.
28. Oil and gas assets
Nil
29. Right-of-use assets
Nil
30. Intangible assets
(1) Measurement use of life and impairment testing
1) Measurement
i. Initial measurement is made at cost when the Company acquires intangible assets;
For those intangible assets purchased from outside the purchase value relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assets. For those purchased amount
that paid overdue exceeded the normal credit condition owns financing natures actually the cost should be
recognized based on the current value while purchased.
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
recorded in current gains and losses.When the exchange of non-monetary assets has commercial substance and the fair value of the assets swapped in
or out can be reliably measured the fair value is used as the basis for measurement. If the fair value of both the
swap-in assets and swap-out assets can be reliably measured for the swap-in intangible assets the fair value of the
swap-in assets and related taxes payable shall be used as the initial investment cost of the swap-in intangible
assets unless there is solid evidence that the fair value of the swap-in assets is more reliable. If the exchange of
non-monetary assets does not have commercial substance or the fair value of the swap-in and swap-out assets
cannot be reliably measured for the intangible assets swapped in the book value of the swap-out assets and the
relevant payable taxes and dues shall be used as the initial investment cost of swap-in intangible assets.ii. Subsequent measurement
Analyzing and judging the service life of an intangible asset when they are acquired.
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when
they become usable to the end of expected useful life;Intangible assets for which it is impossible to predict the
term during which the assets can bring in economic benefits are viewed as intangible assets with indefinite life
without amortization.
2) Estimation of the service life of intangible assets with limited service life
Item Predicted useful life Amortization method Basis
Land use right Amortized the actual rest of life after certificate of land use
right obtained
Straight-line method Certificate of land use
right
Proprietary technology 20-year Straight-line method Actual situation of the
Company
Trademark use right 10-year Straight-line method Actual situation of the
Company
Software use right 5-8 years Straight-line method Protocol agreement
Forest tree use right Service life arranged Straight-line method Protocol agreement
Shop management right Service life arranged Straight-line method Protocol agreement
3) Judgment basis on intangible assets with uncertain service life and review procedures for the service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in
economic benefits are viewed as intangible assets with indefinite life. Intangible assets with indefinite life are
not amortized during the holding period and useful life is re-reviewed at the end of each accounting period. In
case that it is still determined as indefinite after such re-review then impairment test will be conducted
continuously in every accounting period.
(2)Accounting policy of the internal R&D expenditure
1)Specific criteria for dividing research and development stages
The expenditure for internal R&D is divided into research expenditure and development expenditure.Research stage: stage of the investigation and research activities exercising innovative-ness for new science or
technology knowledge obtained and understanding.
Development stage: stage of the activities that produced new or material advance materials devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
Expenditures incurred during the research phase of internal R&D projects shall be recorded into the current profit
and loss when incurred.
2)Standards for capitalization satisfaction of expenditure in development state
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
Owes feasibility in technology and completed the intangible assets for useful or for sale;
i. Owes the intention for completed the intangible assets and for sale purpose;
ii. Way of profit generated including: show evidence that the products generated from the intangible assets owes a
market or owes a market for itself; if the intangible assets will use internally than show evidence of useful-ness;
iii. Possess sufficient technique financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
iv. The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
Expenditure happened in development phase not satisfying the above conditions is included in current period
gains and losses when occurs. Development expenditure previously included in gains and losses in previous
periods will not be re-recognized as assets in later periods. Capitalized development expenditure is stated in
balance sheet as development expenditure and is transferred to intangible assets when the project is ready for
planned use.
31. Impairment of long term assets
The long-term assets as long-term equity investments investment real estate measured at cost fixed assets
construction in progress and intangible assets with certain service life are tested for impairment if there is any
indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the
recoverable amount of the asset is less than its carrying amount a provision for impairment and an impairment
loss are recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on the
individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.Goodwill intangible assets with uncertain service life and intangible assets that have not reached the serviceable
state shall be subject to impairment test at least at the end of each year.When the Company conducts the goodwill impairment test the book value of goodwill formed by business
combination is apportioned to the relevant asset group according to reasonable methods from the date of purchase;
if it is difficult to apportion it to the relevant asset group apportion it to the relevant asset group portfolio. When
apportioning the book value of goodwill the Company apportions according to the relative benefit that the
relevant asset groups or combination of asset groups can obtain from the synergies of business combination and
conducts a goodwill impairment test on this basis.When conducting impairment test for relevant asset group with inclusion of goodwill in case that there is
indication of impairment for such asset group impairment test would be firstly conducted in respect of the asset
groups without inclusion of goodwill. Then it shall calculate the recoverable amount and determine the
corresponding impairment loss as compared to its carrying value. Second asset group with inclusion of goodwill
would be tested for impairment. If it is found after comparison between the carrying value and recoverable
amount of the asset group that the recoverable amount is less than carrying value the Company would recognize
impairment loss for goodwill.Once recognized asset impairment loss would not be reversed in future accounting period.
32. Long term prepaid expense
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year. Long-term prepaid expenses of the
Company includes expenditures on improvement of investment real estate decoration fee and expenditure for
fixed assets improvement etc. Long term prepaid expense is amortized during the beneficial period under straight
line method.
33. Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods to customers for consideration received or
receivable from customers. If the customer has paid the contract consideration or the Company has obtained the
unconditional right of collection before the Company transfers the goods to the customer the Company shall list
the received or receivable amount as a contract liability at the earlier time point between the actual payment paid
by the customer and the payment due. Contract assets and contract liabilities under the same contract are listed in
net amount and contract assets and contract liabilities under different contracts are not offset.34. Staff remuneration
(1)Accounting treatment of short term remuneration
In the period of employee services short-term benefits are actually recognized as liabilities and charged to profit
or loss or relevant assets costs.Regarding to the social insurance and housing funds that the Company paid for employees the Company should
recognize corresponding employees benefits payable according to the appropriation basis and proportion as
stipulated by relevant requirements and recognize the corresponding liabilities.If the employee welfare are non-monetary benefits and can be measured reliably they shall be measured at fair
value.
(2)Accounting treatment for post employment benefits
The Company's post-employment benefit plans are all defined contribution plans.The defined contribution plans for post-employment benefits are mainly to participate in the basic social pension
insurance and unemployment insurance organized and implemented by labor and social security institutions in
various places; in addition to the basic social pension insurance and unemployment insurance the employees in
line with the "Shenzhen Cereals Group Co. Ltd. Enterprise Annuity Plan" can apply for participation in the
annuity plan established by the Company. During the accounting period when employees provide services to the
Company the amount of deposits payable calculated according to the defined contribution plan is recognized as a
liability and included in the current profit and loss or the cost of related assets. After the Company pays the above
payments regularly in accordance with the national standards and the annuity plan there will be no other payment
obligations.
(3)Accounting treatment for dismissal benefit
When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the labor
relationship plan or the downsizing proposal or when confirm the cost or expenses related to the reorganization of
the dismissal benefits (the earlier one) confirm the employee compensation liabilities generated by dismissal
benefits and include in the current profit and loss.
(4)Accounting treatment for other long term staff benefits
Other long term staff benefits refers to all the other staff benefits except for short term remuneration post office
benefit and dismissal benefit.For other long term staff benefits satisfying conditions under defined withdraw plan the contribution payables
shall be recognized as liabilities and included in current gains and losses or relevant asset cost during the
accounting period in which the staff provides services to the Company.
35. Lease liability
Nil
36. Accrual liability
(1) Recognition standards for accrual liability
When the obligations relating to contingencies such as litigation debt guarantee loss contract reorganization and
etc. Satisfy the following conditions an accrual liability shall be recognized:
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.
(2) Measurement
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by
fulfillment of current responsibilities.While determined the best estimation take the risks uncertainty and periodic value of currency that connected
to the contingent issues into consideration. For major influence from periodic value of currency determined best
estimation after discount on future relevant cash out-flow.Treatment for best estimation:
If the expenditure has a continuous range and with similar possibility within the range the best estimation should
determined by the middle value within the range that is the average amount between the up and low limit.If the expenditure has no continuous range or has a continuous range but with different possibility within the
range the possibility amount shall determined as the best estimation while single events involved by contingency;
if many events were involved by contingency the best estimation shall be determined by various results and
relevant probability.If the expenses for clearing of predictive liability is fully or partially compensated by a third party and the
compensated amount can be definitely received it is recognized separated as asset. Though the compensated
amount shall not greater than the book value of the predictive liability
37. Share-based payment
Nil
38. Other financial instrument of preferred stocks and perpetual bond
Nil
39. Revenue
Accounting policy applicable for the revenue recognition and measurement
Accounting policy applicable since 1 Jan. 2020
(1) accounting policy applicable for the revenue recognition and measurement
The Company fulfills the performance obligations in the contract that is revenue is recognized when the
customer obtains control of the relevant goods or services. Obtaining control of related goods or services means
being able to lead the use of the goods or services and obtain almost all of the economic benefits from them.If the contract contains two or more performance obligations the Company will allocate the transaction price to
each individual performance obligation in accordance with the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the starting date of the contract.The Company measures revenue based on the transaction price allocated to each individual performance
obligation.The transaction price refers to the amount of consideration that the Company expects to be entitled to receive due
to the transfer of goods or services to customers excluding payments collected on behalf of third parties and
payments expected to be returned to customers. The Company determines the transaction price in accordance with
the terms of the contract and combined with its past customary practices when determining the transaction price
it considers the influence of variable consideration major financing components in the contract non-cash
consideration consideration payable to customers and other factors. The Company determines the transaction
price that includes variable consideration at an amount that does not exceed the amount of accumulated
recognized revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated. If there
is a significant financing component in the contract the Company determines the transaction price based on the
amount payable in cash when the customer obtains control of the goods or services and uses the actual interest
method to amortize the difference between the transaction price and the contract consideration during the contract
period.It belongs to the performance obligation fulfilled within a certain period of time when meeting one of the
following conditions otherwise it belongs to the performance obligation fulfilled at a certain point in time:
The customer obtains and consumes the economic benefits brought by the Company's performance at the same
time as the Company's performance.
Customers can control the products under construction in the Company's performance process.
The products produced by the Company during the performance of the contract have irreplaceable uses and the
Company has the right to collect payment for the accumulated performance part of the contract during the entire
contract period.
For performance obligations performed within a certain period of time the Company recognizes revenue
according to the performance progress during that period except where the performance progress cannot be
reasonably determined. The Company considers the nature of the goods or services and adopts the output method
or the input method to determine the progress of performance. When the performance progress cannot be
reasonably determined and the costs incurred are expected to be compensated the Company shall recognize the
revenue according to the amount of the costs incurred until the performance progress can be reasonably
determined.
For performance obligations performed at a certain point in time the Company recognizes revenue at the point
when the customer obtains control of the relevant goods or services.When judging whether a customer has obtained control of goods or services the Company considers the
following signs:
The Company has the current right to collect payment for the goods or services that is the customer has the
current payment obligation for the goods or services.The Company has transferred the legal ownership of the goods to the customer that is the customer has the legal
ownership of the goods.The Company has transferred the goods to the customer in kind that is the customer has taken possession of the
goods in kind.The Company has transferred the main risks and rewards of the ownership of the goods to the customer that is
the customer has obtained the main risks and rewards of the ownership of the goods.The customer has accepted the goods or services etc.
Accounting policy before 1 Jan. 2020
(1) general principles for the recognition of sales revenue
1)Principal risks and rewards in the ownership of the goods are transferred to the buyer;
2)The Company retains neither the continuing management rights normally associated with ownership nor
effective control over the merchandise sold;
3)The sales revenue can be measured reliably;
4)The related economic benefits are likely to flow into the company;
5)The relevant costs incurred or to be incurred can be measured in a reliable way.
(2) Rendering of services
1) The amount of income can be reliably measured;
2) The relevant economic benefits are likely to flow into the enterprise;
3) The completion schedule of the transaction can be reliably determined;
4) The costs incurred and to be incurred in the transaction can be reliably measured.
The total amount of labor service income is determined by the received or receivable contract or agreement price
except that the contract or agreement price received or receivable is not fair. On the balance sheet date the current
labor service income is determined by the amount that the total labor service income multiplies by the completion
schedule and deducts the accumulated labor income from the previous accounting period. At the same time the
current labor cost is carried forward by the amount that the total labor service cost multiplies by the completion
schedule and deducts the accumulated labor cost from the previous accounting period.If the results of the labor service transaction on the balance sheet date cannot be reliably estimated they shall be
disposed as follows:
1) If the labor costs incurred is estimated to be compensated the labor service income shall be determined
according to the amount of labor costs incurred and the labor costs shall be carried forward at the same amount.
2) If the labor costs incurred is estimated not to be compensated the labor costs incurred shall be included in the
current profit and loss and the labor service income shall not be recognized.When the contract or agreement signed by the Company with other enterprises includes the sale of goods and the
rendering of labor services if the parts of the sales of goods and the parts of the rendering of labor service can be
distinguished and can be separately measured treat the part of the sales of goods as the sales of goods and treat
the part of the rendering of labor services as rendering of labor services. If the parts of the sales of goods and the
parts of the rendering of labor service cannot be distinguished or can be distinguished but cannot be separately
measured treat the part of the sales of goods and the parts of the rendering of labor service both as the sales of
goods. Recognize revenue for the grain and oil dynamic storage and rotation services provided by the Company
for the Shenzhen Municipal Government when the relevant labor service activities occur. Specifically monthly
calculate and recognize the government service income based on the actual storage grain and oil quantity and the
storage price stipulated by “Operational Procedures for Government Grain Storage All-in Cost of Shenzhen” and
“Operational Procedures for Edible Vegetable Oil Government Reserve All-in Cost of Shenzhen”.
( 3)assignment of the right-to-use assets
Financial benefit attached to the contract is possibly inflow to the company; Overall income of the contract
can be measured reliably. Determined the use right income for transaction assets respectively as followed:
1) Amount of interest income: determined by the time and effective interest rate of the currency capital used by
other people.
2) Amount of income from use: determined by the charge time and calculation method agreed in the relevant
contract or agreement.
3) For the income from real estate dock warehouse and other property leasing and terminal docking business
calculate and determine the rental income and warehousing logistics income according to the chargeable time and
method as stipulated in the contract or agreement.The accounting policy for revenue recognition are different due to the different business models in the same kind of business
40. Government Grants
(1) Types
Governments grants of the Company refer to the monetary and non-monetary assets obtained from government
for free and are divided into those related to assets and others related to revenues.Government grants related to assets refer to those obtained by the Company and used for purchase or construction
of or otherwise to form long-term assets. Government subsidies related to revenue refer to those other than
government subsidies related to assets.
(2) Recognition of government grant
At end of the period if there is evidence show that the Company qualified relevant condition of fiscal supporting
polices and such supporting funds are predicted to obtained than recognized the amount receivable as government
grants. After that government grants shall recognize while actually received.Government grants in the form of monetary assets are stated at the amount received or receivable. Government
grants in the form of non-monetary assets are measured at fair value; if fair value cannot be obtained a nominal
amount (one yuan) is used. Government grants measured at nominal amount is recognized immediately in profit
or loss for the current period.
(3) Accounting treatment
Based on the nature of economic business the Company determines whether a certain type of government subsidy
business should be accounted for by using the total amount method or the net amount method. In general the
Company only chooses one method for similar or similar government subsidy services and this method is
consistently applied to the business.Item Calculation content
Based on gross method All business of government grants
The government grants related to the assets are recognized as deferred income. The assets constructed or
purchased shall be divided into the profit/loss by stages in a reasonable and systematic manner over their useful
life;
As for the government grants with income concerned which has compensated relevant expenses and losses
occurred in later period than recognized as deferred income and reckoned into current gains/losses during the
period while relevant expenses or losses determined; those used to compensate the relevant costs or losses of the
company it shall be directly included in the current profit/loss. Government grants relevant to daily activities of
enterprises are included in other income; government grants irrelevant to daily activities of enterprises are
included in non-operating income and expenditure.The government grants relevant to discounted interest on policy concessional loans is used to offset the relevant
borrowing costs; if a borrowings with preferential interest rate provided by the lending bank is obtained then the
actual amount of borrowings received shall be taken as the entry value and the relevant borrowing costs shall be
calculated according to the loan principal and preferential interest rate.When a recognized government grant needs to be returned adjust the book value of assets if it is used to offset the
book value of underlying assets at initial recognition; if there is a related deferred income balance offset the book
balance of relevant deferred income and include the excess in current profit or loss; if there is no related deferred
income and directly include in the current profit or loss.
41. Deferred income tax assets and deferred income tax liabilities
The deferred income tax assets recognized by deductible temporary differences are within the limit of taxable
income that is probably achieved in the future to deduct the deductible temporary differences. The deductible
losses and tax credits that can be carried forward in subsequent years are within the limit of the future taxable
income it is probably achieved in the future to deduct the deductible losses and tax credits and the corresponding
deferred income tax assets are recognized.
For taxable temporary differences deferred income tax liabilities are recognized except in special circumstances.
The special circumstances of not recognizing deferred income tax assets or deferred income tax liabilities include:
initial recognition of goodwill; other transactions or matters other than business combinations that neither affect
accounting profits nor affect taxable income (or deductible losses) when occur.When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the
assets and settle the liabilities simultaneously current tax assets and current tax liabilities are offset and presented
on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable
entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to
realize the assets and liabilities simultaneously in each future period in which significant amounts of deferred tax
assets or liabilities are expected to be reversed deferred tax assets and deferred tax liabilities are offset and
presented on a net basis.
42. Lease
(1)Accounting treatment for operating lease
1)The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.When the lessor undertakes the expenses related to the lease that should be undertaken by the company the
company shall deduct the expenses from the total rental costs share by the deducted rental costs during the lease
term and reckon in the current expenses.
2) Rental obtained from assets leasing during the whole leasing period without rent-free period excluded shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.When the company undertakes the expenses related to the lease that should be undertaken by the lessor the
company shall deduct the expenses from the total rental income and distribute by the deducted rental costs during
the lease term.
(2)Accounting treatment for financing lease
1)Assets lease-in by financing: On the beginning date of the lease the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable with difference
recognized as unrecognized financing expenses. Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct expenses
incurred by the Company are included in the value of the rented assets.
2) Finance leased assets: on the lease commencement date the company affirms the balance among the finance
lease receivables the sum of unguaranteed residual value and its present value as the unrealized financing income
and recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to
the rental transaction the company reckons in the initial measurement of the finance lease receivables and
reduces the amount of income confirmed in the lease term.
43. Other important accounting policy and estimation
Safety production expenses
The safety production expenses drawn by the Company in accordance with the national regulations are included in
the cost of relevant products or the current profit and loss and are recorded in the “special reserve” account.When using the drawn safety production expenses directly offset the special reserve if it belongs to the expense
expenditure. For fixed assets the expenses incurred through the collection of “under construction” subjects shall
be recognized as fixed assets when the safety project is completed and ready for use. At the same time the special
reserve shall be offset according to the cost of forming the fixed assets and accumulated depreciation of the same
amount shall be recognized. The fixed assets will no longer be depreciated in the future.
44. Changes of important accounting policy and estimation
(1)Changes of important accounting policies
√ Applicable □ Not applicable
Content & reasons Approval procedure Note
On July 5 2017 the Ministry of Finance
revised and issued the "Accounting
Standards for Business Enterprises No.
14-Revenue" (No. CK [2017] 22).
According to the requirements of the
Ministry of Finance for companies
listed at home and abroad at the same
time and companies listed abroad and
adopting the International Financial
Reporting Standards or Accounting
Standards for Business Enterprises to
prepare financial statements it has been
implemented since January 1 2018; for
other domestic listed companies it has
been implemented from January 1 2020;
for non-listed companies that implement
the Accounting Standards for Bushiness
Enterprises it will be implemented on
January 1 2021. According to the
requirements of the above documents
the company made corresponding
changes to its accounting policies.
Approved by the 7th Session of 10th BOD
on 31 Dec. 2019
This change in accounting policy did not
cause a major change in the company’s
revenue recognition method and did not
have a major impact on the company’s
current and previous net profit total
assets and net assets. This change in
accounting policy is a corresponding
change made by the company in
accordance with the latest accounting
standards revised and promulgated by
the Ministry of Finance. The changed
accounting policy is in compliance with
relevant regulations and the actual
situation of the company.
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented the
new revenue standards and new leasing standards since 2020
Applicable
Whether need to adjust the balance sheet items at the beginning of the year
□Yes √No
Explain the reasons of no need to adjust the balance sheet items at the beginning of the year
There are no influence on the items of balance sheet at beginning of the year when implemented the new revenue standards and new
leasing standards
(4) Retrospective adjustment of early comparison data description when implemented the new revenue
standards and new leasing standards since 2020
□ Applicable √ Not applicable
45. Other
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
VAT
The output tax is calculated on the basis
of the sales of goods and the taxable
service income calculated according to
the tax law. After deducting the input tax
amount that is allowed to be deducted in
the current period the difference part is
the value-added tax payable.
13% 9% 6% 5% 3%
Urban maintenance and construction tax
Calculated according to the actual
value-added tax and consumption tax
5% 7%
Enterprise income tax Calculated according to taxable income 25% 15% Tax-free
Educational surtax
Calculated according to the actual
value-added tax and consumption tax
3%
Local education surcharge
Calculated according to the actual
value-added tax and consumption tax
2%
Property tax
Price-based resource tax 1.2 percent of
the remaining value after deducting 20%
of the original value of the property; 12
percent of the rental income if levy by
rents.
1.2% 12%
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
Shenzhen Cereals Holdings Co. Ltd. 25%Shenzhen Cereals Group Co. Ltd（hereinafter referred to as
"SZCG"）
25% Some businesses are tax-freeShenzhen Hualian Grain and Oil Trading Co. Ltd.（hereinafterreferred to as "Hualian Company"）
25%Shenzhen Flour Co. Ltd（hereinafter referred to as "Shenzhen Tax-freeFlour "）Shenliang Quality Inspection Co. Ltd.（hereinafter referred toas "Shenliang Quality Inspection "）
25%Hainan Haitian Aquatic Feed Co. Ltd.（hereinafter referred toas " Hainan Haitian "）
25%Shenliang Doximi Business Co. Ltd. （hereinafter referred toas "Doximi "）
25%
Shenzhen Shenliang Beige Kitchen Food Supply Chain Co.Ltd.（hereinafter referred to as "Beige Kitchen "）
15%Shenzhen Shenliang Storage (Yingkou) Co. Ltd. （hereinafterreferred to as " Shenliang Storage (Yingkou) "）
25%
Shenzhen Shenliang Cold Chain Logistics Co. Ltd.（hereinafter referred to as "Shenliang Cold Chain "）
15%
Shenzhen Shenliang Property Development Co. Ltd.（hereinafter referred to as "Shenliang Property"）
25%
Shenzhen Shenliang Property Management Co. Ltd.(hereinafter referred to as "Shenliang Property")
25%Dongguan Shenliang Logistics Co. Ltd.（hereinafter referredto as "Dongguan Logistics"）
25%
Dongguan International Food Industrial Park DevelopmentCo. Ltd.（hereinafter referred to as "Dongguan Food IndustrialPark"）
25%
Dongguan Shenliang Oil & Food Trade Co. Ltd. (hereinafter
referred to as "Dongguan Food Trade ")
25%Dongguan Jinying Biotechnology Co. Ltd.（hereinafterreferred to as " Dongguan Jinying"）
25%
Shuangyashan Shenliang Zhongxin Cereals Base Co. Ltd.(hereinafter referred to as "Shuangyashan Shenliang Zhongxin
")
25%
Heilongjiang Hongxinglong Nongken Shenxin Cereals
Industrial Park Co. ltd. (hereinafter referred to as "
Hongxinglong Nongken Industrial Park ")
25%
Shenzhen Shenbao Huacheng Technology Co. Ltd.（hereinafter referred to as "Shenbao Huacheng "）
15%
Shantou Branch of Shenzhen Shenbao Huacheng Science and
Technology Co.Ltd (hereinafter referred to as " Huacheng
Shantou Branch")
25%Wuyuan Ju Fang Yong Tea Industry Co. Ltd. （hereinafterreferred to as "Wuyuan Ju Fang Yong "）
15%
Shenzhen Shenshenbao Investment Co. Ltd.（hereinafterreferred to as "Shenbao Investment"）
25%
Shenzhen Shenshenbao Tea Culture Commercial Management
Co. Ltd. (hereinafter referred to as "Shenbao Tea Culture")
25%
Hangzhou Ju Fang Yong Holding Co. Ltd (hereinafter referred
to as " Hangzhou Ju Fang Yong ")
25%
Hangzhou Ju Fang Yong Trading Co. Ltd. (hereinafter
referred to as "Ju Fang Yong Trading ")
25%
Hangzhou Fuhaitang Catering Management Chain Co. Ltd.(hereinafter referred to as "Fuhaitang Catering")
25%
Shenzhen Shenbao Tea-Shop Co. Ltd (hereinafter referred to
as "Shenbao Tea-Shop")
25%
Hangzhou Fuhaitang Tea Ecological Technology Co. Ltd.(hereinafter referred to as "Fuhaitang Ecological")
25%
Mount Wuyi Shenbao Rock Tea Co. Ltd. (hereinafter referred
to as "Shenbao Rock Tea")
25%
Yunnan Shenbao Pu’er Tea Supply Chain Management Co.Ltd. (hereinafter referred to as "Pu’er Tea Supply Chain")
25%
Shenzhen Shenbao Sanjing Food and Beverage Development
Co. Ltd.（hereinafter referred to as "Shenbao Sanjing "）
25%
Yunnan Pu’er Tea Trading Center Co. Ltd. (hereinafter
referred to as "Pu’er Tea Trading Center")
25%
Huizhou Shenbao Food Co. Ltd. (hereinafter referred to as
"Huizhou Shenbao Food")
25%
Huizhou Shenbao Technology Co. Ltd. (hereinafter referred to
as "Huizhou Shenbao Technology ")
25%
Shenzhen Shenbao Property Management Co. Ltd.(hereinafter referred to as "Shenbao Property")
25%
Shenzhen Shenbao Technology Center Co. Ltd. (hereinafter
referred to as "Shenbao Technology Center ")
25%
Shenzhen Shenbao Industrial & Trading Co. Ltd(hereinafter
referred to as "Shenbao Industry and Trade")
25%
2. Tax preferential
(1) VAT discounts and approval
According to the “Notice of the Ministry of Finance and the State Administration of Taxation on the Issues
Concerning the VAT Collection and Exemption of Grain Enterprises (CSZ [1999] No. 198)” and “Shenzhen TaxService State Taxation Administration and 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 byrule 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 the Approval ofSome 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 cancelled 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 30 June 2020 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 “Notice of the Ministry of Finance and the State Administration of Taxation onthe Relevant Tax Policies Concerning Some National Reserved Commodities (CS [2019] No. 77)” 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 (Yue Cai Shui
[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 up to December 31 2021.
(3) Enterprise income tax
1) Shenbao Huacheng a subsidiary of the Company obtained the “High-tech Enterprise Certificate” (Certificate
number is GR201744203462) jointly issued by Shenzhen Science and Technology Innovation Committee
Shenzhen Financial Committee Shenzhen Tax Service State Taxation Administration and Shenzhen Local
Taxation Bureau on October 31 2017 which is valid for three years. According to the relevant preferential
policies of the state for high-tech enterprises the qualified high-tech enterprises shall pay the corporate income
tax at a reduced income tax rate of 15% within three years from the year of the determination and Shenbao
Huacheng enjoys the tax preferential policy from 2017 to 2019. The qualification of Shenbao Huacheng as a
national high-tech enterprise this year is under review.
2) The Company’s subsidiary Wuyuan Jufangyong obtained the “High-tech Enterprise Certificate” (Certificate
number is GR201836000703) jointly issued by the Science and Technology Department of Jiangxi Province the
Finance Department of Jiangxi Province and Jiangxi Provincial Tax Service State Taxation Administration on
August 13 2018 which is valid for three years. According to the relevant preferential policies of the state for
high-tech enterprises the qualified high-tech enterprises shall pay the corporate income tax at a reduced income
tax rate of 15% within three years from the year of the determination and Wuyuan Jufangyong enjoys the tax
preferential policy from 2018 to 2020.
3) According to the “Notice on the Issues Concerning the Treatment of Corporate Income Taxes for Fiscal Fundsof Special Purposes of the Ministry of Finance and the State Administration of Taxation (CS [2009] No. 87) the
government service income obtained by SZCG the Company’s subsidiary and its subsidiaries from the
government’s grain reserve business is a special-purpose fiscal fund which can be used as non-taxable income if
eligible and is deducted from the total income when calculating the taxable income. The expenses arising from the
above-mentioned non-taxable income for expenditure shall not be deducted when calculating the taxable income;
the calculated depreciation and amortization of the assets formed by non-taxable income for expenditure shall not
be deducted when calculating the taxable income.
4) Shenzhen Flour a subsidiary of the Company is a flour primary processing enterprise according to thestipulations of the “Notice on Issuing the Scope (Trial) of Primary Processing of Agricultural Products Applicableto the Corporate Income Tax Preferential Policy (CS [2008] No. 149)” and the “Supplementary Notice on theScope of Primary Processing of Agricultural Products Applicable to the Corporate Income Tax Preferential Policyof the Ministry of Finance and the State Administration of Taxation” (CS [2011] No. 26) the wheat primary
processing is exempt from income tax.
5) According to the Article one of the “Notice of the Ministry of Finance and the State Administration of Taxationon the Corporate Income Tax Preferential Policies and Preferential Catalogue for Guangdong Hengqin New
District Fujian Pingtan Comprehensive Experimental Zone and Shenzhen Qianhai Shenzhen-Hong KongModern Service Industry Cooperation Zone” (CS [2014] No.26) levy the corporate income tax at a reduced
income tax rate of 15% for the encouraged industrial enterprises located in Hengqin New District Pingtan
Comprehensive Experimental Zone and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation
Zone. The Company’s subsidiaries Shenliang Cold-Chain Logistic and Shenliang Big Kitchen are registered in
Shenzhen Qianhai Cooperation Zone and meet the preferential tax conditions according to the relevant policies in
the Cooperation Zone their income tax enjoys a tax preference of 15% and this preferential tax policy shall be up
to 2020.
3. Other
Nil
VII. Annotation to main items of consolidated financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 93771.21 191650.33
Cash in bank 113457423.97 154658586.69
Other monetary fund 85791.20 104520.83
Total 113636986.38 154954757.85
Other explanation
The Company did not has account pledge freeze or has potential risks in collection ended as 30 June 2020.
2. Tradable financial assets
In RMB
Item Ending balance Opening balance
Financial assets measured by fair value
and with variation reckoned into current
gains/losses
593425.30 1166209.72
Including:
Equity investment instrument 593425.30 1166209.72
Including:
Total 593425.30 1166209.72
Other explanation:
Ending balance refers to the 258011 shares of A-stock under the name of “CBC-A”
3. Derivative financial assets
In RMB
Item Ending balance Opening balance
Other explanation ：
4. Note receivable
(1) Category
In RMB
Item Ending balance Opening balance
Bank acceptance bill 642379.62 1909720.38
Total 642379.62 1909720.38
In RMB
Category
Ending balance Opening balance
Book balance
Bad debt
provision Book
value
Book balance Bad debt provision
Book
valueAmoun
t
Ratio
Amoun
t
Accrua
l ratio
Amoun
t
Ratio Amount Accrual
ratio
Including:
Including:
Bad debt provision accrual on single basis:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Explanation on portfolio determines:
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
(2) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category
Opening
balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written-off Other
Including major amount bad debt provision that collected or reversal in the period:
□ Applicable √Not applicable
(3) Note receivable that pledged at period-end
In RMB
Item Amount pledged at period-end
(4) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Amount transfer to account receivable at period-end
Other explanation
(6) Note receivable actually written-off in the period
In RMB
Item Amount written-off
Including important note receivable that written-off:
In RMB
Enterprise Nature
Amount
written-off
Written-off causes
Procedure of
written-off
Resulted by
related transaction
(Y/N)
Explanation on note receivable written-off
5. Account receivable
(1) Category
In RMB
Category
Ending balance Opening balance
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount Accrual
ratio
Amount Ratio Amount Accrual
ratio
Account receivable
with bad debt
provision accrual on
a single basis
101367
140.16
35.30%
987271
60.11
97.40%
2639980
.05
1033613
42.42
23.40%
9966378
0.43
96.42%
3697561.9
9
Including:
Account receivable
with single
significant amount
and withdrawal bad
debt provision on
single basis
104556
27.54
3.64%
104556
27.54
100.00%
1045562
7.54
2.36%
1045562
7.54
100.00%
Account receivable
with single minor
amount but with bad
debts provision
accrued on a single
basis
909115
12.62
31.66%
882715
32.57
97.10%
2639980
.05
9290571
4.88
21.04%
8920815
2.89
96.02%
3697561.9
9
Account receivable
with bad debt
provision accrual on
portfolio
185782
232.26
64.70%
309325
8.29
1.66%
1826889
73.97
3382999
30.10
76.60%
3309725
.41
0.98%
33499020
4.69
Including:
Accounts receivable
with provision for
bad debts by aging
analysis
130331
922.52
45.39%
309325
8.29
2.37%
1272386
64.23
1546555
75.22
35.02%
3309725
.41
2.14%
15134584
9.81
Specific object
combinations
554503
09.74
19.31%
5545030
9.74
1836443
54.88
41.58%
18364435
4.88
Total
287149
372.42
100.00%
101820
418.40
35.46%
1853289
54.02
4416612
72.52
100.00%
1029735
05.84
23.32%
33868776
6.68
Bad debt provision accrual on single basis: 98727160.11 Yuan
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Guangzhou Jinhe Feed
Co. Ltd
10455627.54 10455627.54 100.00%
Slightly possibly taken
back
Shenzhen Faqun
Industry Co. Ltd.
4582156.00 4582156.00 100.00%
Slightly possibly taken
back
Li Shaoyu 2929128.53 2929128.53 100.00%
Slightly possibly taken
back
Zhuhai Doumen Huabi
Feed Co. Ltd.
2396327.14 2396327.14 100.00%
Slightly possibly taken
back
Chongqing Zhongxing
Food Industry Co.
Ltd.
2354783.30 2354783.30 100.00%
Slightly possibly taken
back
Hengyang Feed factory 1907679.95 1907679.95 100.00%
Slightly possibly taken
back
Other accounts
receivable with
extremely low
probability of recovery
over 5 years
76741437.70 74101457.65 96.56%
Slightly possibly taken
back
Total 101367140.16 98727160.11 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: 3093258.29 Yuan
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Specific object combinations 55450309.74 0.00 0.00%
Accounts receivable with
provision for bad debts by aging
analysis
Within one year (including
1-year)
123799666.27 1237996.67 1.00%
1-2 years (including 2-year) 3700694.86 370069.50 10.00%
2-3 years (including 3-year) 823855.44 247156.62 30.00%
3-4 years (including 4-year) 177517.92 88758.97 50.00%
4-5 years (including 5-year) 1049579.68 524789.85 50.00%
Over 5 years 780608.35 624486.68 80.00%
Total 185782232.26 3093258.29 --
Explanation on portfolio determines:
Among them the portfolio of specific objects mainly includes receivables from the government reserve funds etc. no bad debt
provision accrual.
Bad debt provision accrual on portfolio:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including 1-year) 179612011.03
1-2 years 5216041.40
2-3 years 810328.13
Over 3 years 101510991.86
3-4 years 5369194.97
4-5 years 1049579.68
Over 5 years 95092217.21
Total 287149372.42
(2) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category Opening balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written-off Other
Accrued by
combination
3309725.41 -216467.12 3093258.29
Accrued by single
item
99663780.43 936620.32 98727160.11
Total 102973505.84 -216467.12 936620.32 101820418.40
Including major amount bad debt provision that collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
(3) Account receivable actually written-off in the period
In RMB
Item Amount written-off
Including major account receivable written-off:
In RMB
Enterprise Nature Amount written-off Written-off causes
Procedure of
written-off
Resulted by related
transaction (Y/N)
Explanation on account receivable written-off:
(4) Top 5 account receivables at ending balance by arrears party
In RMB
Enterprise
Ending balance of accounts
receivable
Proportion in total receivables at
ending balance
Bad debt preparation ending
balance
First 16972520.00 5.91% 169725.20
Second 10455627.54 3.64% 10455627.54
Third 10414520.40 3.63% 104145.20
Fourth 10110243.00 3.52% 101102.43
Fifth 9807933.95 3.42% 98079.34
Total 57760844.89 20.12%
(5) Account receivable de-recognized due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
6. Account receivable financing
In RMB
Item Ending balance Opening balance
Changes of account receivable financing and change of fair value in the period
□ Applicable √Not applicable
If the impairment provision of account receivable financing is made in accordance with the general model of expected credit losses
please refer to the disclosure of other account receivables to disclose related information about impairment provision:
□ Applicable √Not applicable
Other explanation:
7. Accounts paid in advance
(1) By account age
In RMB
Account age
Ending balance Opening balance
Amount Ratio Amount Ratio
Within one year 33215618.77 98.69% 8782989.64 95.44%
1-2 years 250762.38 0.75% 200837.84 2.18%
2-3 years 123011.05 0.36% 59439.42 0.65%
Over 3 years 67746.99 0.20% 159663.81 1.73%
Total 33657139.19 -- 9202930.71 --
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
Nil
(2) Top 5 account paid in advance at ending balance by prepayment object
Total period-end balance of top five account paid in advance by prepayment object amounted to 24733028.63 Yuan takes 73.48
percent of the total paid in advance at period-end.Other explanation:
8. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 28304818.99 25758695.07
Total 28304818.99 25758695.07
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening balance
2) Significant overdue interest
In RMB
Borrower Ending balance Overdue time Overdue causes
Whether impairment
occurs and its judgment
basis
Other explanation:
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested enterprise) Ending balance Opening balance
2) Important dividend receivable with account age over one year
In RMB
Item (or invested
enterprise)
Ending balance Account age
Reasons for not
collection
Whether impairment
occurs and its judgment
basis
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation:
(3) Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Margin and deposit 20878108.40 13760145.15
Export tax rebate 263845.71
Other intercourse funds 104321388.16 109796076.74
Total 125463342.27 123556221.89
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
TotalExpected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on Jan. 1 2020 2996278.20 94801248.62 97797526.82
Balance of Jan. 1 2020
in the period
—— —— —— ——
Current accrual -603642.41 204763.50 -398878.91
Current reversal 240000.00 240000.00
Current written off 124.63 124.63
Balance on Jun. 30 2020 2392511.16 94766012.12 97158523.28
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including 1-year) 18100976.18
1-2 years 5214737.01
2-3 years 2216899.04
Over 3 years 99930730.04
3-4 years 4578876.39
4-5 years 1873952.51
Over 5 years 93477901.14
Total 125463342.27
3) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category
Opening
balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal Written off Other
Combined accrual 2996278.20 -603642.41 124.63 2392511.16
Single accrual 94801248.62 204763.50 240000.00 94766012.12
Total 97797526.82 -398878.91 240000.00 124.63 97158523.28
Including major amount with bad debt provision reverse or collected in the period:
In RMB
Enterprise Amount reversal or collected Collection way
4) Other account receivable actually written-off in the period
In RMB
Item Amount written-off
Other account receivable actually written-off 124.63
Including important other account receivable written-off:
In RMB
Enterprise Nature Amount written-off Written-off causes
Procedure of
written-off
Resulted by related
transaction (Y/N)
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
In RMB
Enterprise Nature Ending balance Account age
Ratio in total ending
balance of other
account receivables
Ending balance of
bad debt reserve
First
Intercourse funds 24255375.15
Within one year to
1-5 years and over
19.33% 21768266.87
Second Intercourse funds 8326202.63 Over 5 years 6.64% 8326202.63
Three Intercourse funds 5602468.81 Over 5 years 4.47% 5602468.81
Fourth Intercourse funds 8285803.57 Over 5 years 6.60% 8285803.57
Fifth Intercourse funds 5677473.59 Over 5 years 4.53% 5677473.59
Total -- 52147323.75 -- 41.57% 49660215.47
6) Other account receivables related to government grants
In RMB
Enterprise Government grants Ending balance Ending account age
Time amount and basis
for collection predicted
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
9. Inventories
Whether implemented the new revenue standards
No
(1) Category
In RMB
Item Ending balance Opening balance
Book balance
Inventories fall
provision or
contract
performance
costs impairment
provision
Book value Book balance
Inventories fall
provision or
contract
performance
costs impairment
provision
Book value
Raw materials 65435509.36 19314135.53 46121373.83 56703874.41 19314135.53 37389738.88
Goods in process 22376777.89 282586.46 22094191.43 20109513.82 282586.46 19826927.36
Finished goods 3467344541.26 101746356.80 3365598184.46 3095488288.29 101687483.68 2993800804.61
Revolving
material
10202638.83 830388.06 9372250.77 9029409.09 952393.40 8077015.69
Goods in transit 4403343.26 641630.40 3761712.86 5475435.17 5475435.17
Work in
process-outsource
d
5390363.35 5290502.32 99861.03 5421792.75 5290502.32 131290.43
Total 3575153173.95 128105599.57 3447047574.38 3192228313.53 127527101.39 3064701212.14
(2) Inventories fall provision or contract performance costs impairment provision
In RMB
Item Opening balance
Current amount increased Current amount decreased
Ending balance
Accrual Other
Reversal or
write-off
Other
Raw materials 19314135.53 19314135.53
Goods in process 282586.46 282586.46
Finished goods 101687483.68 95412048.38 94711544.86 641630.40 101746356.80
Revolving
material
952393.40 122005.34 830388.06
Goods in transit 641630.40 641630.40
Work in
process-outsource
d
5290502.32 5290502.32
Total 127527101.39 95412048.38 641630.40 94833550.20 641630.40 128105599.57
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
(4) Assets unsettled formed by construction contract which has completed at period-end
10. Contract assets
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Amount and reasons for the major changes of book value of contract assets in the period:
In RMB
Item Amount changed Cause of change
If the bad debt provision of accrual contract is made in accordance with the general model of expected credit losses please refer to
the disclosure of other account receivables to disclose related information about bad debt provision:
□ Applicable √Not applicable
Impairment provision of contract assets in the period
In RMB
Item Current accrual Current reversal Charge off/Written-off Causes
Other explanation:
11. Assets held for sale
In RMB
Item
Ending book
balance
Impairment
provision
Ending book
value
Fair value
Estimated
disposal cost
Estimated
disposal time
Other explanation:
12. Non-current asset due within one year
In RMB
Item Ending balance Opening balance
Important creditors’ investment/ other creditors’ investment
In RMB
Item
Ending balance Opening balance
Face value Coupon rate Actual rate
Maturity
date
Face value Coupon rate Actual rate
Maturity
date
Other explanation:
13. Other current assets
In RMB
Item Ending balance Opening balance
Input tax to be deducted 96429377.35 83157841.68
Prepaid income tax 9441.17 15985.35
Financial products held to maturity within
one year
310000000.00 385000000.00
Other 553.37
Total 406438818.52 468174380.40
Other explanation:
14. Creditors’ investment
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Important creditors’ investment
In RMB
Item
Ending balance Opening balance
Face value Coupon rate Actual rate
Maturity
date
Face value Coupon rate Actual rate
Maturity
date
Accrual of impairment provision
In RMB
Bad debt provision
Phase I Phase II Phase III
TotalExpected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance of Jan. 1 2020
in the period
—— —— —— ——
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation:
15. Other creditors’ investment
In RMB
Item
Opening
balance
Accrual
interest
Change of
fair value in
the period
Ending
balance
Cost
Accumulated
change of
fair value
Loss
impairment
accumulated
recognized in
other
comprehensi
ve income
Note
Important other creditors’ investment
In RMB
Other creditor item
Ending balance Opening balance
Face value Coupon rate Actual rate
Maturity
date
Face value Coupon rate Actual rate
Maturity
date
Accrual of impairment provision
In RMB
Bad debt provision
Phase I Phase II Phase III
TotalExpected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance of Jan. 1 2020
in the period
—— —— —— ——
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
Other explanation:
16. Long-term account receivable
(1) Long-term account receivable
In RMB
Item
Ending balance Opening balance
Discount rate
intervalBook balance
Bad debt
provision
Book value Book balance
Bad debt
provision
Book value
Impairment of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
TotalExpected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance of Jan. 1 2020
in the period
—— —— —— ——
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
(2) Long-term account receivable derecognition due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Other explanation
17. Long-term equity investment
In RMB
The
investe
d entity
Openin
g
balance
(book
value)
Current changes (+-)
Ending
balance
(book
value)
Ending
balance
of
impair
ment
provisi
on
Additio
nal
investm
ent
Capital
reducti
on
Investm
ent
gains
recogni
zed
under
equity
Other
compre
hensive
income
adjustm
ent
Other
equity
change
Cash
dividen
d or
profit
announ
ced to
issued
Accrual
of
impair
ment
provisi
on
Other
I. Joint venture
II. Associated enterprise
Shenzh
en
Shenba
o
(Xinmi
n)
Foods
Co.
Ltd*1
28700
00.00
28700
00.00
28700
00.00
Shenzh
en
Shenba
o
(Liaoyu
an)
Industri
al Co.
Ltd*1
57628.
53
57628.
53
57628.
53
Changz
hou
Shenba
o
Chacan
g
E-busin
ess Co.ltd.*2
Huizho
u
Shenba
o
Manan
Bio-tec
hnolog
y Co.
Ltd.Shenzh
en
Shichu
mingm
en
Restaur
ant
Manage
ment
Co.
Ltd.*2
Guangz
hou
Shenba
o
Menda
o Tea
Co.
Ltd.
22114
29.68
21629
24.05
-48505
.63
Zhuhai
Hengxi
ng Feed
Industri
al Co.
Ltd.
31636
707.22
22120
3.08
31857
910.30
Shenzh
en
Duoxi
Equity
Investm
ent
Fund
Manage
ment
Co.
Ltd.
37036
04.80
-5039.
49
36985
65.31
Shenlia
ng
Intellig
ent
Wulian
Equity
Investm
ent
Fund
(Shenz
hen)
Partner
ship
Enterpr
ise
(Limite
d)
25933
923.35
-17286
3.43
25761
059.92
SHENZ
HEN
SYDAT
A
TECH
NOLO
GY
CO.
LTD
98756
47.05
37219
4.90
10247
841.95
Subtota
l
76288
940.63
21629
24.05
36698
9.43
74493
006.01
29276
28.53
Total
76288
940.63
21629
24.05
36698
9.43
74493
006.01
29276
28.53
Other explanation
*1: these two companies have been established for a long time. At the current stage their business licenses have been revoked.
Impairment provision is made in full due to absence of settlement.
*2: the long-term equity investment for Changzhou Shenbao Chacang E-commence Co. Ltd and Shenzhen Shichumingmen
Restaurant Management Co. Ltd. which are measured by equity; the book balance counted as Zero for losses in the two above
mentioned enterprises
18. Other equity instrument investment
In RMB
Item Ending balance Opening balance
Itemized the non-tradable equity instrument investment in the period
In RMB
Item
Dividend income
recognized
Cumulative gains
Cumulative
losses
Retained earnings
transfer from
other
comprehensive
income
Causes of those
that designated
measured by fair
value and with its
variation
reckoned into
other
comprehensive
income
Cause of retained
earnings transfer
from other
comprehensive
income
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 at cost
√ Applicable □Not applicable
In RMB
Item House and building Land use right Construction in progress Total
I. Original book value
1.Opening balance 590440328.15 590440328.15
2.Current amount
increased
(1) Outsourcing
(2) Inventory\fixed
assets\construction in
process transfer-in
(3) Increased by
combination
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 590440328.15 590440328.15
II. Accumulated
depreciation and
accumulated
amortization
1.Opening balance 320735390.98 320735390.98
2.Current amount
increased
8333518.82 8333518.82
(1) Accrual or
amortization
8333518.82 8333518.82
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 329068909.80 329068909.80
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 261371418.35 261371418.35
2. Opening book value 269704937.17 269704937.17
(2) Measure on fair value
□ Applicable √Not applicable
(3) Investment real estate without property certificate completed
In RMB
Item Book value Reasons
Other explanation
21. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 1081579471.16 945042032.69
Total 1081579471.16 945042032.69
(1) Fixed assets
In RMB
Item House and buildings
Machinery
equipment
Transport equipment
Electronic and other
equipment
Total
I. Original book
value:
1.Opening balance 896518401.77 452026081.27 18721521.51 60760300.85 1428026305.40
2.Current amount
increased
92284570.08 68069212.26 275671.91 4354342.18 164983796.43
(1) Purchase 773815.53 275671.91 4354342.18 5403829.62
(2) Construction in
progress transfer-in
92284570.08 67295396.73 159579966.81
(3) Increased
by combination
3.Current amount
decreased
2087845.63 659802.96 2747648.59
(1) Disposal or
scrap
2087845.63 649275.81 2737121.44
(2) Other
decreases
10527.15 10527.15
4.Ending balance 988802971.85 520095293.53 16909347.79 64454840.07 1590262453.24
II. Accumulated
depreciation
1.Opening balance 191240117.01 232572819.43 13702651.03 40480125.26 477995712.73
2.Current amount
increased
12802425.81 11187292.49 694846.01 3575140.51 28259704.82
(1) Accrual 12802425.81 11187292.49 694846.01 3575140.51 28259704.82
3.Current amount
decreased
1955107.84 604275.89 2559383.73
(1) Disposal or
scrap
1955107.84 600780.69 2555888.53
(2) Other
decreases
3495.20 3495.20
4.Ending balance 204042542.82 243760111.92 12442389.20 43450989.88 503696033.82
III. Impairment
provision
1.Opening balance 689332.71 4285356.15 13871.12 4988559.98
2.Current amount
increased
(1) Accrual
3.Current amount
decreased
1611.72 1611.72
(1) Disposal or
scrap
1611.72 1611.72
4.Ending balance 689332.71 4285356.15 12259.40 4986948.26
IV. Book value
1.Ending book
value
784071096.32 272049825.46 4466958.59 20991590.79 1081579471.16
2. Opening book
value
704588952.05 215167905.69 5018870.48 20266304.47 945042032.69
(2) Temporarily idle fixed assets
In RMB
Item Original book value
Accumulated
depreciation
Impairment
provision
Book value Note
(3) Fixed assets by financing leased
In RMB
Item Original book value
Accumulated
depreciation
Impairment provision Book value
(4) Fixed assets leased out by operation
In RMB
Item Ending book value
(5) Fix assets without property certification held
In RMB
Item Book value
Reasons for without the property
certification
Other explanation
(6) Fixed assets disposal
In RMB
Item Ending balance Opening balance
Other explanation
22. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 749918300.15 771971469.43
Total 749918300.15 771971469.43
(1) Construction in progress
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Shenbao Plaza
project
3842333.64 3842333.64 3842333.64 3842333.64
Dongguan grain
storage and wharf
matching project
223530693.42 223530693.42 197140797.10 197140797.10
Deep processing
of Dongguan
Industry and
Trading Food
168072.78 168072.78 120065528.37 120065528.37
CDE storage of
Dongguan Food
Industrial Park
and wharf mating
projects
455953672.54 455953672.54 399913306.49 399913306.49
Grain storage and
processing
61836807.88 61836807.88 42489084.80 42489084.80
Workshop
transformation of
Flour Company
564930.37 564930.37 868932.37 868932.37
Low-temperature
renovation
reconstruction
and expansion
project in Pinghu
2770358.30 2770358.30 7096256.57 7096256.57
Other 5996954.60 903189.74 5093764.86 5300753.47 903189.74 4397563.73
Total 754663823.53 4745523.38 749918300.15 776716992.81 4745523.38 771971469.43
(2) Changes of major construction in progress
In RMB
Item
Name
Budget
Opening
balance
Current
amount
increased
Transfer-
in fixed
assets
Other
decrease
d in the
Period
Ending
balance
Proporti
on of
project
investme
nt in
budget
Progress
Accumul
ated
capitaliz
ation of
interest
Includin
g:
amount
of
capitaliz
ation of
interest
in Period
Interest
capitaliz
ation rate
in Period
Capital
resources
Donggua
n grain
storage
and
wharf
matching
project
124200
0000.00
197140
797.10
268899
38.36
500042.
04
223530
693.42
71.00% 71.00%
293444
18.21
488241
4.48
4.90%
Financial
institutio
n loans
Deep
processi
ng of
Donggua
n
Industry
and
Trading
Food
292000
000.00
120065
528.37
287272.
65
120184
728.24
168072.
78
41.00% 41.00%
483408
0.16
4.90%
Financial
institutio
n loans
CDE
storage
of
Donggua
n Food
Industria
l Park
and
wharf
mating
projects
960000
000.00
399913
306.49
560403
66.05
455953
672.54
79.00% 79.00%
592316
15.42
115029
42.88
5.64%
Financial
institutio
n loans
Total
249400
0000.00
717119
631.96
832175
77.06
120684
770.28
679652
438.74
-- --
934101
13.79
163853
57.36
--
(3) The provision for impairment of construction in progress
In RMB
Item Amount accrual in the period Reasons of accrual
Other explanation
(4) Engineering material
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Other explanation:
23. Productive biological asset
(1) Measured by cost
√ Applicable □Not applicable
In RMB
Item Plant Livestock Forestry Fisheries Total
Tea tree
I. Original book
value
1.Opening balance 416771.28 416771.28
2.Current amount
increased
(1)Outsourcing
(2)self-cultivate
3.Current amount
decreased
(1)Disposal
(2)Other
4.Ending balance 416771.28 416771.28
II. Accumulated
depreciation
1.Opening balance 19384.72 19384.72
2.Current amount
increased
4846.18 4846.18
(1)Accrual 4846.18 4846.18
3.Current amount
decreased
(1)Disposal
(2)Other
4.Ending balance 24230.90 24230.90
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
392540.38 392540.38
2. Opening book
value
397386.56 397386.56
(2) Measured by fair value
□ Applicable √Not applicable
24. Oil and gas asset
□ Applicable √Not applicable
25. Right-of-use asset
In RMB
Item Total
Other explanation:
26. Intangible assets
(1) Intangible assets
In RMB
Item Land use right Patent
Non-patent
technology
Other Total
I. Original book
value
1.Opening
balance
630510783.19 47245918.89 11311677.63 32955523.47 722023903.18
2.Current
amount increased
5497797.99 240000.00 5737797.99
(1) Purchase 5497797.99 0.00 5497797.99
(2) internal
R&D
0.00 240000.00 240000.00
(3)
Increased by
combination
3.Current amount
decreased
0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00
4.Ending
balance
630510783.19 47245918.89 16809475.62 33195523.47 727761701.17
II. Accumulated
depreciation
1.Opening
balance
84816102.13 25893578.33 5018387.91 10445149.92 126173218.29
2.Current
amount increased
7597938.70 922718.55 1695920.94 753100.29 10969678.48
(1) Accrual 7597938.70 922718.55 1445533.19 753100.29 10719290.73
(2) Other
decreases
250387.75 0.00 250387.75
3.Current
amount decreased
0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00
4.Ending
balance
92414040.83 26816296.88 6714308.85 11198250.21 137142896.77
III. Impairment
provision
1.Opening
balance
5553283.54 1130341.88 0.00 6683625.42
2.Current
amount increased
0.00 0.00 0.00
(1) Accrual
3.Current
amount decreased
0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00
4.Ending
balance
5553283.54 1130341.88 0.00 6683625.42
IV. Book value
1.Ending book
value
538096742.36 14876338.47 8964824.89 21997273.26 583935178.98
2. Opening
book value
545694681.06 15799057.02 5162947.84 22510373.55 589167059.47
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
Item Book value
Reasons for without the property
certification
Land use right 26124232.19 Still under processing
Land use right 7849990.00
Collective land cannot handle the
certificate of ownership
Total 33974222.19
Other explanation:
27. Expense on Research and Development
In RMB
Item
Opening
balance
Current amount increased Current amount decreased
Ending
balance
Internal
development
expenditure
Other
Confirmed as
intangible
assets
Transfer to
current profit
and loss
Total
Other explanation
28. Goodwill
(1) Original book value
In RMB
The invested
entity or matters
forming goodwill
Opening balance
Current increased Current decreased
Ending balanceFormed by
business
combination
Dispose
Yunnan Pu’er Tea
Trading Center
Co. Ltd.
673940.32 673940.32
Total 673940.32 673940.32
(2) impairment provision
In RMB
The invested
entity or matters
forming goodwill
Opening balance
Current increased Current decreased
Ending balance
Accrual Dispose
Yunnan Pu’er Tea
Trading Center
Co. Ltd.
673940.32 673940.32
Total 673940.32 673940.32
Relevant information about the assets group or portfolio goodwill included
In May 2016 the 15% equity of Pu’er Tea Trading Center held by Yunnan Heng Feng Xiang Investment Co. Ltd was acquired by Ju
Fang Yong Holding the sub-subsidiary of the Company after completion of the acquisition the Company has control over the Pu’er
Tea Trading Center. The balance between the combined cost and the fair value of net assets on the combining date formed goodwill
of RMB 673940.32.Instructions for goodwill impairments test process and key parameters (such as the forecast period growth rate stable period growth
rate profit rate discount rate and forecast period when estimating the present value of the future cash flow) and the method of
confirming the impairment loss of goodwill:
Impact of goodwill impairment test
Other explanation
29. Long-term expenses to be apportioned
In RMB
Item Opening balance
Current amount
increased
Current amortization Other decreased Ending balance
Improve expenditure
for fix assets
9211089.66 5178825.70 1111933.61 13277981.75
Decoration fee 4528548.18 425002.88 1060372.51 3893178.55
Improve expenditure
for investment real
estate
Affiliated project of
resident area in
Wuyuan Ju Fang
Yong
124210.64 14278.97 109931.67
Other *1 5991380.21 198882.04 638303.53 5551958.72
Total 19855228.69 5802710.62 2824888.62 22833050.69
Other explanation
*1. Mainly due to long-term deferred expenses such as Huizhou Shenbao 2.55 million yuan (including outdoor sewage installation
and system maintenance costs) Shenzhen Cereals Group 2.18 million yuan (including maintenance auxiliary costs).
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Item
Ending balance Opening balance
Deductible temporary
differences
Deferred income tax
asset
Deductible temporary
differences
Deferred income tax
asset
Impairment provision for
assets
59454288.69 14511971.59 58355685.95 14290490.90
Unrealized profits in
internal transactions
2983604.44 452523.40 973157.01 243289.25
Deferred income 118461.58 29615.39 183076.96 45769.24
Credit impairment loss 98701484.68 24558903.71 98478516.09 24503161.57
Total 161257839.39 39553014.09 157990436.01 39082710.96
(2) Deferred income tax liability without offset
In RMB
Item
Ending balance Opening balance
Taxable temporary
differences
Deferred income tax
liabilities
Taxable temporary
differences
Deferred income tax
liabilities
Asset evaluation
increment of enterprise
combine under different
control
49427574.56 12356893.67 50255008.79 12563752.22
Total 49427574.56 12356893.67 50255008.79 12563752.22
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item
Trade-off between the
deferred income tax
assets and liabilities
Ending balance of
deferred income tax
assets or liabilities after
off-set
Trade-off between the
deferred income tax
assets and liabilities at
period-begin
Opening balance of
deferred income tax
assets or liabilities after
off-set
Deferred income tax
asset
39553014.09 39082710.96
Deferred income tax
liabilities
12356893.67 12563752.22
(4) Details of uncertain deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 310359937.89 309898433.67
Deductible loss 330162451.72 330162451.72
Total 640522389.61 640060885.39
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Other explanation:
31. Other non-current asset
In RMB
Item
Ending balance Opening balance
Book
balance
Impairment
provision
Book value
Book
balance
Impairment
provision
Book value
Prepaid for equipment 611965.84 611965.84 611965.84 611965.84
Prepaid for system
1260000.
00
1260000.
00
1260000.
00
1260000.
00
Total
1871965.
84
1871965.
84
1871965.
84
1871965.
84
Other explanation:
32. Short-term loans
(1) Category
In RMB
Item Ending balance Opening balance
Loan in credit 271271250.10 23595000.00
Total 271271250.10 23595000.00
Explanation on category of short-term loans:
(2) Overdue short-term loans without payment
RMB 0 short-term loans over due without paid at period-end including follow major amount:
In RMB
Borrower Ending balance Loan rate Overdue time Overdue interest
Other explanation:
33. Tradable financial liability
In RMB
Item Ending balance Opening balance
Including:
Including:
Other explanation:
34. Derivative financial liability
In RMB
Item Ending balance Opening balance
Other explanation:
35. Note payable
In RMB
Category Ending balance Opening balance
Notes expired at year-end without paid was 0 Yuan.
36. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Trade accounts payable 128507402.75 201806654.53
Account payable for engineering 42327591.67 55979629.86
Other 2235937.35 8337186.59
Total 173070931.77 266123470.98
(2) Major accounts payable with age over one year
In RMB
Item Ending balance Reasons of outstanding or carry-over
Other explanation:
37. Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Account for goods received in advance 99465819.87 134989316.21
Other 245029442.81 2222515.79
Total 344495262.68 137211832.00
(2) Important account received in advance with account age over one year
In RMB
Item Ending balance Reasons of outstanding or carry-over
Other explanation:
38. Contract liabilities
In RMB
Item Ending balance Opening balance
Amount and reasons for important changes of book value in the period
In RMB
Item Amount changed Reasons of changes
39. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
compensation
170486447.93 130920373.69 150463161.73 150943659.89
II. After-service
welfare-defined
contribution plans
23551781.02 2852565.20 8423662.17 17980684.05
III. Dismissed welfare 1038347.60 904781.49 1095309.49 847819.60
Total 195076576.55 134677720.38 159982133.39 169772163.54
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wage bonus
allowance and subsidy 160062092.35 115565270.15 132354865.33 143272497.17
2. Employees’ welfare 675866.67 5533003.42 6208870.09
3. Social insurance
charges 86045.19 2719819.84 2716032.70 89832.33
Including: medical
insurance premium 41753.99 2441198.47 2435855.76 47096.70
Industrial injury
insurance premiums 605.17 12076.99 12483.13 199.03
Maternity insurance
premiums 2300.25 102398.80 103548.23 1150.82
Other 41385.78 164145.58 164145.58 41385.78
4. Housing public reserve 124800.30 4912048.64 4912048.64 124800.30
5. Trade union fee and
education fee 9537643.42 2190231.64 4271344.97 7456530.09
Total 170486447.93 130920373.69 150463161.73 150943659.89
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
insurance premiums 423432.45 980175.14 1020483.44 383124.15
2. Unemployment
insurance premiums 2554.47 11579.54 12231.87 1902.14
3. Enterprise annuity 23125794.10 1860810.52 7390946.86 17595657.76
Total 23551781.02 2852565.20 8423662.17 17980684.05
Other explanation:
40. Taxes payable
In RMB
Item Ending balance Opening balance
VAT 1900674.71 2206356.73
Enterprise income tax 6397513.34 30123982.59
Personal income tax 6060057.17 1251969.61
Urban maintenance and construction tax 110080.86 104892.72
House property tax 3197932.81 1348616.75
Educational surtax 83167.68 78996.91
Use tax of land 656594.09 275026.35
Stamp tax 107301.51 599525.05
Other 801143.08 1058246.76
Total 19314465.25 37047613.47
Other explanation:
41. Other account payable
In RMB
Item Ending balance Opening balance
Interest payable 802489.86 1411457.29
Dividend payable 2933690.04 2933690.04
Other account payable 374873923.29 232032023.80
Total 378610103.19 236377171.13
(1) Interest payable
In RMB
Item Ending balance Opening balance
Long-term loans interest for installment 802489.86 1411457.29
Total 802489.86 1411457.29
Major overdue interest:
In RMB
Borrower Overdue amount Overdue causes
Other explanation:
(2) Dividend payable
In RMB
Item Ending balance Opening balance
Unmanaged shares 242719.90 242719.90
Shenzhen Investment Management
Company *1
2690970.14 2690970.14
Total 2933690.04 2933690.04
Other explanation including important dividend payable over one year without payment disclose reasons for un-paid:
*1Former largest shareholder problems left over from historical guarantees.
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Engineering quality retention money and
fund of tail
12449033.63 3797078.78
Deposit and margin 142989893.26 116032480.36
Intercourse funds and other 203877982.99 105177684.59
Drawing expenses in advance 15557013.41 7024780.07
Total 374873923.29 232032023.80
2) Significant other account payable with over one year age
In RMB
Item Ending balance Reasons of outstanding or carry-over
Zhanjiang Changshan (Shenzhen)
Ecological Breeding Co. Ltd.
7999570.83 Not yet expired
Total 7999570.83 --
Other explanation
42. Liability held for sale
In RMB
Item Ending balance Opening balance
Other explanation:
43. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Long-term loans due within one year 71800514.64 67420012.16
Total 71800514.64 67420012.16
Other explanation:
44. Other current liabilities
In RMB
Item Ending balance Opening balance
Government service revenue appropriation
in advance
684034.12 219151968.63
Total 684034.12 219151968.63
Change of short-term bonds payable:
In RMB
Bonds
Face
value
Issuance
date
Bonds
term
Amount
issued
Opening
balance
Issued in
the period
Accrual
interest
by face
value
Premium
and
discount
amortizati
on
Paid in
the period
Ending
balance
Other explanation:
45. Long-term loans
(1) Category
In RMB
Item Ending balance Opening balance
Mortgage loan 712348080.85 673642296.22
Guarantee loan 147083964.13 162270260.19
Total 859432044.98 835912556.41
Explanation on category of long-term loans:
Other explanation including interest rate range:
46. Bonds payable
(1) Bonds payable
In RMB
Item Ending balance Opening balance
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Bonds
Face
value
Issuance
date
Bonds
term
Amount
issued
Opening
balance
Issued in
the period
Accrual
interest
by face
value
Premium
and
discount
amortizati
on
Paid in
the period
Ending
balance
Total -- -- --
(3) Convertible conditions and time for shares transfer for the convertible bonds
(4) Other financial instruments classify 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
financial
instrument
Period-beginning Current increased Current decreased Period-end
Amount Book value Amount Book value Amount Book value Amount Book value
Basis for financial liability classification for other financial instrument
Other explanation
47. Lease liability
In RMB
Item Ending balance Opening balance
Other explanation
48. Long-term account payable
In RMB
Item Ending balance Opening balance
Special account payable 15990925.48 15856950.01
Total 15990925.48 15856950.01
(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 fund
for grain deposits
and special fund for
grain industry
research
15856950.01 133975.47 15990925.48
The depreciation
fund of the reserve
grain depot is
allocated by the
finance to SZCG as
a special fund and
interest that the
government invests
in the depreciation of
the reserve grain
depot.Total 15856950.01 133975.47 15990925.48 --
Other explanation:
49. Long-term wage payable
(1) Long-term wage payable
In RMB
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current Period Last Period
Scheme assets:
In RMB
Item Current Period Last Period
Net liability (assets) of the defined benefit plans
In RMB
Item Current Period Last Period
Content of defined benefit plans and relevant risks impact on future cash flow of the Company as well as times and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other explanation:
50. Accrual liabilities
In RMB
Item Ending balance Opening balance Causes
External guarantee 3500000.00 3500000.00 Note 1
Total 3500000.00 3500000.00 --
Other explanation including relevant important assumptions and estimation:
Note 1: For the guarantee of Changzhou Shenbao within the scope of 3.5 million yuan to provide joint liability for compensation.
51. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Government
subsidies related to
assets
101750431.65 5000000.00 2055335.31 104695096.34
See table below for
details
Government
subsidies related to
income
41809.66 11000.00 30809.66
See table below for
details
Total 101792241.31 5000000.00 2066335.31 104725906.00 --
Item with government grants involved:
In RMB
Liability
Opening
balance
New grants
in the
Period
Amount
reckoned in
non-operati
on revenue
Amount
reckoned in
other
income
Cost
reduction
in the
period
Other
changes
Ending
balance
Assets-rela
ted/income
related
(1) Base of
further
processing
for tea and
nature
plants
825000.00 137500.00 687500.00
Assets-rela
ted
(2)
Enterprise
technology
center is a
municipal
R&D
center.Subsidies
for
industrial
technologic
al
advanceme
nt
1783276.
57
102012.30
1681264.
27
Assets-rela
ted
(3) Project
grants for
years for
agricultural
district
Xihu Zone
183076.96 64615.38 118461.58
Assets-rela
ted
(4) Key
technology
research
and
developme
nt for the
235113.94 105790.60 129323.34
Assets-rela
ted
preparation
of
high-qualit
y aroma
extracts
based on
the use of
tea aroma
precursors
(5) Key
technology
research
and
developme
nt for the
preparation
of
high-qualit
y aroma
extracts
based on
the use of
tea aroma
precursors
41809.66 11000.00 30809.66
Income-
related
(6)
Industrializ
ation of
instant tea
powder
1887690.
79
98222.94
1789467.
85
Assets-rela
ted
(7) Grant
for key
technology
research
and
industrializ
ation of
instant tea
powder
138766.19 7122.51 131643.68
Assets-rela
ted
(8) Special
fund for
the
developme
nt of
3187683.
87
175604.54
3012079.
33
Assets-rela
ted
strategic
emerging
industries
in
Shenzhen
(plant deep
processing
engineerin
g) (Shen
Developme
nt &
Reform
No.
20131601)
(9)
Constructio
n amount
for 50 tons
for clearly
processing
for
Mingyou
tea
374999.98 62500.02 312499.96
Assets-rela
ted
(10)
Subsidy for
tea seeding
of New Tea
Garden in
Wangkou
45020.68 554.64 44466.04
Assets-rela
ted
(11)
Subsidy for
supply
system
constructio
n of
agricultural
products
550000.00 100000.00 450000.00
Assets-rela
ted
(12) Grain
storage
project of
Dongguan
Shenliang
Logistics
7980160.
71
131128.56
7849032.
15
Assets-rela
ted
Co. Ltd. -
Storage A
(13) Phase
II of grain
storage
project of
Dongguan
Shenliang
Logistics
Co. Ltd.-
Storage B
31937399
.00
515650.26
31421748
.74
Assets-rela
ted
(14) Grain
oil and
food
headquarte
rs and
innovative
public
service
platform of
Dongguan
Shenliang
Logistics
Co. Ltd.
18000000
.00
18000000
.00
Assets-rela
ted
(15)
Special
funds for
intelligent
upgrading
and
transformat
ion of grain
warehouse
for the
2017“GrainSafetyProject”
11320000.
00
11320000
.00
Assets-rela
ted
(16)
Constructio
n of
450000 ton
silos and
17387647
.07
16511.20
17371135
.87
Assets-rela
ted
60000 ton
film silos
-CDE
warehouse.Gas storage
bin
(17)
Special
fund for
agricultural
developme
nt of 2016-
agricultural
product
safety
testing
project-
capacity
building of
the third
party
inspection
institution
expansion
evaluation
328000.00 328000.00
Assets-rela
ted
(18)
Agricultura
l product
safety
testing
project of
the special
fund for
agricultural
developme
nt of 2016
- Central
investment
fund
684000.00 684000.00
Assets-rela
ted
(19)
Constructio
n of O2O
community
1750835.
16
19288.02
1731547.
14
Assets-rela
ted
sales
service
system for
high
quality
grain and
oil based
on B2C
E-commerc
e platform
(20)
Industrializ
ation of
Doximi
E-commerc
e platform
1961094.
13
418834.32
1542259.
81
Assets-rela
ted
(21)
Commercia
l
circulation
developme
nt project
funding for
year of
2017
524000.00 524000.00
Assets-rela
ted
(22)
Intelligent
manageme
nt of grain
depot
based on
mobile
internet
666666.60 100000.02 566666.58
Assets-rela
ted
(23)
Special
Fund for
Grain
Depot
Upgrade of
Shenzhen
Developme
nt and
Reform
5000000.
00
5000000.
00
Assets-rela
ted
Commissio
n
Total
10179224
1.31
5000000.
00
2066335.
31
10472590
6.00
Other explanation:
52. Other non-current liabilities
In RMB
Item Ending balance Opening balance
Other explanation:
53. Share capital
In RMB
Opening
balance
Increased (decreased) in this period +-
Ending balanceNew shares
issued Bonus shares
Shares
converted from
public reserve
Other Subtotal
Total shares
1152535254.
00
1152535254.
00
Other explanation:
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding
financial
instrument
Period-beginning Current increased Current decreased Period-end
Amount Book value Amount Book value Amount Book value Amount Book value
Changes of other equity instrument change reasons and relevant accounting treatment basis:
Other explanation:
55. Capital public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
capital premium)
1413996347.50 1413996347.50
Other capital reserve 8896381.86 8896381.86
Total 1422892729.36 1422892729.36
Other instructions including changes in the current period reasons for the change:
56. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other explanation including changes and reasons for changes:
57. Other comprehensive income
In RMB
Item
Opening
balance
Current Period
Ending
balance
Account
before
income tax
in the
period
Less: written
in other
comprehensi
ve income in
previous
period and
carried
forward to
gains and
losses in
current
period
Less:
written in
other
comprehe
nsive
income in
previous
period and
carried
forward to
retained
earnings in
current
period
Less : income
tax expense
Belong to
parent
company
after tax
Belong to
minority
shareholders
after tax
Other explanation including the active part of the hedging gains/losses of cash flow transfer to initial reorganization adjustment for
the arbitraged items:
58. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Production safety fee 522.55 574618.41 575140.96
Total 522.55 574618.41 575140.96
Other explanation including changes and reasons for changes:
59. Surplus public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
reserves
350187601.06 350187601.06
Total 350187601.06 350187601.06
Other explanation including changes 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 1495135080.60 1269933487.26
Total retained profit at the beginning of the
previous year before adjustment 1495135080.60 1269933487.26
Add: net profit attributable to shareholder of
parent company 210738686.12 203168850.61
Common stock dividends payable 230507050.80 115253525.40
Retained profit at period-end 1475366715.92 1357848812.47
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and operating cost
In RMB
Item
Current period Last period
Income Cost Income Cost
Main business 4738760181.96 4218999878.26 4778550071.95 4258702014.11
Other business 1668040.14 403950.54 3617660.74 3399756.51
Total 4740428222.10 4219403828.80 4782167732.69 4262101770.62
Information relating to revenue:
In RMB
Category Branch 1 Branch 2 Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligations:
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them yuan of revenue is expected to be recognized
in YEAR yuan of revenue is expected to be recognized in YEAR and yuan of revenue is expected to be recognized in YEAR.Other explanation
62. Tax and surcharges
In RMB
Item Current period Last period
Urban maintenance and construction tax 393095.87 850546.63
Educational surtax 293482.34 647628.82
House property tax 2332175.04 3902342.55
Use tax of land 871580.42 856035.80
Stamp duty 385415.59 339910.55
Other 58669.28 9049.85
Total 4334418.54 6605514.20
Other explanation:
63. Sales expenses
In RMB
Item Current period Last period
Labor and social security benefits 32804986.80 28921374.58
Rental 2577208.22 4572089.52
Utilities and office expenses 2350318.50 2983459.64
After-sale services 789476.48 3239606.10
Logistics transportation fee 28612496.12 34511447.40
Travel expenses 779656.28 1356310.96
Equivalent loss for low value perishable
goods
935717.93 1481592.76
Depreciation and amortization of
long-term assets
6518839.48 5855616.32
Business hospitality 527170.78 485263.49
Advertisement charge 363244.31 406507.02
Sales commission 248538.85 893.65
Port terminal fee 19474717.84 18373644.53
Property insurance premium 82506.02 462098.96
Other 8531801.39 7434460.44
Handling charges 4882744.12 2469377.37
Automobile expenses 317274.99
Total 109796698.11 112553742.74
Other explanation:
64. Administration expenses
In RMB
Item Current period Last period
Labor and social security benefits 69229045.12 64112522.69
Communication fee 520417.29 698972.98
Vehicle usage fee 546606.17 678600.30
Low-value consumables 179389.99 141751.26
Repair cost 693712.09 264513.27
Depreciation and amortization of
long-term assets
13292796.12 11830728.97
Travel expenses 552462.94 1286620.67
Business hospitality 1164075.59 1227426.99
Office expenses 3701673.55 7666398.75
Rental 1468092.89 750998.75
Intermediary agency fee 2140781.77 3750693.95
Other 8285912.43 8988719.41
Contract compensation 63494.58
Total 101838460.53 101397947.99
Other explanation:
65. R&D expenses
In RMB
Item Current period Last period
Labor and social security benefits 4299743.55 2786779.24
Depreciation cost 1678787.85 619854.40
Office expenses 146085.41 280219.64
Travel expenses 82848.06 180071.96
Logistics consumption 80752.32 199042.35
Intermediary fees 43200.00
Maintenance and inspection fee 11870.89 35889.40
Other 1068684.60 45981.26
Material 20436.66
Total 7368772.68 4211474.91
Other explanation:
66. Financial expenses
In RMB
Item Current period Last period
Interest expenses 7410693.33 10087784.34
Less: Interest income 1735133.50 2185171.96
Exchange loss -54764.94 303008.96
Bank charges and others 534417.72 314110.51
Total 6155212.61 8519731.85
Other explanation:
67. Other income
In RMB
Sources Current Period Last Period
Amortization of deferred income (related
to assets)
2055335.31 1402816.24
Amortization of deferred income (related
to income)
11000.00 485081.41
R&D subsidy for 2018 from Shenzhen
Science & Technology Innovation
Committee
216000.00
Received the construction subsidy for
top talents project of Guangdong
Provincial Grain & Material Reserve
Bureau
30000.00
Grain talents program subsidy 20269.70
Industrial development guiding fund 2611248.00
Received the loan discount for leading
agricultural enterprises
388300.00
Service charges are refund by Taxation
Bureau
126043.99
Received the intermediary fee subsidy
for mergers and acquisition of the
Nanshan Economic promotion Bureau
738700.00
Received the employee social insurance
subsidy (1-9) of Wuyuan County
Finance Bureau for 2018
470078.93
Post stabilization subsidy 34080.37
Received the patent award for 2018 from
Shangrao Intellectual Property Bureau
50000.00
Received the guiding funds for industrial
development for 2018 from Industry and
Information Technology Bureau (Fiscal
Appropriation)
170697.00
Received the high-tech enterprise award
for 2018 from Industry and Information
Technology Bureau (Fiscal
Appropriation)
200000.00
Received the provincial R&D center
fund for 2018 from Industry and
Information Technology Bureau (Fiscal
Appropriation)
50000.00
Amount of the new project of 50 tons
clean mingou tea processing for first half
of 2019
62500.00
Other 4112896.49 1053389.33
Shenzhen Futian District Enterprise
Development Service Center retail
2000000.00
industry growth Award
Total 10824560.17 5463876.60
68. Investment income
In RMB
Item Current period Last period
Long-term equity investment income
measured by equity
366989.43 3413100.95
Investment income from disposal of long-term
equity investment
2337075.95 127368.82
Income from financial products 7544998.92 3627466.27
Total 10249064.30 7167936.04
Other explanation:
69. Net exposure hedge gains
In RMB
Item Current period Last period
Other explanation:
70. Income of fair value changes
In RMB
Sources Current Period Last Period
Tradable financial assets -572784.42 28381.21
Total -572784.42 28381.21
Other explanation:
71. Credit impairment loss
In RMB
Item Current period Last period
Loss of bad debt of other account
receivable
638878.91 5143559.77
Loss of bad debt of account receivable 1153087.44
Total 1791966.35 5143559.77
Other explanation:
72. Assets impairment loss
In RMB
Item Current period Last period
I. Bad debt losses 2063558.29
II. Inventories fall loss and contract
performance costs impairment loss
-95290043.04 -71294981.71
Total -95290043.04 -69231423.42
Other explanation:
73. Income from assets disposal
In RMB
Sources Current Period Last Period
Gains or losses from fixed assets disposal -10598.38 -4184.59
74. Non-operating income
In RMB
Item Current period Last period Amount included in the current
non-recurring profit and loss
Government grants 10030.08 3000.00 10030.08
Income from liquidated
damages
683979.26 683979.26
Performance compensation 337500.00 337500.00
Other 327290.24 359252.46 327290.24
Total 1358799.58 362252.46 1358799.58
Government grants reckoned into current gains/losses:
In RMB
Grants
Issuing
subject
Issuing cause Property type
Whether the
impact of
subsidies on
the current
profit and
loss
Whether
special
subsidies
Amount of
this period
Amount of
last period
Assets
related/Incom
e related
Other explanation:
75. Non-operating expenditure
In RMB
Item Current period Last period Amount included in the current
non-recurring profit and loss
External donations 5151098.92 2000000.00 5151098.92
Abnormal loss 1962312.38
Inventory loss 4693.69
Loss of scrap from non-current
assets
35567.38 14840.94 35567.38
Other 172.94
Total 5186666.30 3982019.95 5186666.30
Other explanation:
76. Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Current income tax expenses 3142430.31 8075504.29
Deferred income tax expenses -677161.68 7409789.74
Total 2465268.63 15485294.03
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 214695129.09
Income tax expenses calculated by statutory tax rate 53673782.27
Impact from different tax rate apply with the subsidiary -1021663.04
Effect of adjusting income tax in the previous period -1203516.26
Impact of non taxable income -87908890.74
Impact on cost expenses and losses that unable to deducted 19477774.43
Impact of the deductible loss on deferred income tax assets not
recognized in the prior period of use
-1756304.38
Unrecognized impacts of deductible temporary differences or
deductible losses on deferred income tax assets in the period
21624379.13
Impact on R&D costs deduction -420292.78
Income tax expenses 2465268.63
Other explanation
77. Other comprehensive income
Found more in annotations
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
Item Current period Last period
Intercourse funds and deposit 425055874.21 180418202.50
Government grants 13758224.86 4448353.51
Interest income 1893194.14 2185171.96
Total 440707293.21 187051727.97
Note of cash paid with other operating activities concerned:
(2) Cash paid with other operating activities concerned
In RMB
Item Current period Last period
Intercourse funds and deposit 342216823.96 153621034.86
Operating daily expenses 103213558.91 102412945.42
Total 445430382.87 256033980.28
Note of cash paid with other operating activities concerned:
(3) Cash received with other investment activities concerned
In RMB
Item Current period Last period
Performance compensation 337500.00
Total 337500.00
Note of cash received with other investment activities concerned:
(4) Cash paid related with investment activities
In RMB
Item Current period Last period
Other costs of engineering 994317.84
Total 994317.84
Note of cash paid related with investment activities:
(5) Cash received with other financing activities concerned
In RMB
Item Current period Last period
Note of cash received with other financing activities concerned:
(6) Other cash paid related with financing activities
In RMB
Item Current period Last period
Handling fee for dividend distribution 58702.23 72997.72
Total 58702.23 72997.72
Note of other cash paid related with financing activities:
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last period
1. Net profit adjusted to cash flow of
operation activities:
-- --
Net profit 212229860.46 216240634.47
Add: Impairment provision for assets 93498076.69 64087863.65
Depreciation of fixed assets consumption of
oil assets and depreciation of productive
biology assets
36594574.62 25585678.98
Amortization of intangible assets 11220066.23 10078858.18
Amortization of long-term pending expenses 2824888.62 10979032.68
Loss from disposal of fixed assets intangible
assets and other long-term assets (income is
listed with “-”)
10598.38 4184.59
Losses on scrapping of fixed assets (incomeis listed with “-“)
35567.38 14840.94
Loss from change of fair value (income islisted with “-“)
572784.42 -28381.21
Financial expenses (income is listed with
“-”)
7410693.33 10087784.34
Investment loss (income is listed with “-”) -10249064.30 -7167936.04
Decrease of deferred income tax assets
(increase is listed with “-”)
-470303.13 18886.47
Decrease of deferred income tax
asset( (increase is listed with “-”) -206858.55 174506.94
Decrease of inventory (increase is listed with
“-”) -382924860.42 -235691486.95
Decrease of operating receivable accounts
(increase is listed with “-”)
129417912.00 -118497256.23
Increase of operating payable accounts
(decrease is listed with “-”)
-90353574.58 -365316840.56
Net cash flow arising from operating
activities
9610361.15 -389429629.75
2. Material investment and financing not
involved in cash flow
-- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 113636986.38 189914485.39
Less: Balance of cash at year-begin 154954757.85 631638339.68
Net increasing of cash and cash equivalents -41317771.47 -441723854.29
(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
Amount
Including: --
Including: --
Including: --
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 113636986.38 154954757.85
Including: Cash on hand 93771.21 191650.33
Bank deposit available for payment
at any time
113457423.97 154658586.69
Other monetary fund available for
payment at any time
85791.20 104520.83
III. Balance of cash and cash equivalent at
period-end
113636986.38 154954757.85
Other explanation:
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Reasons for restriction
Intangible assets 70907004.64
1. According to the loan contract of“Guangdong DG 2017 NGDZ No.
006” signed by Dongguan
FoodIndustrial Park and Bank of
Communications Guangdong Branch
Dongguan Food Industry Park
mortgaged its two pieces of lands
(DFGY (2009) DT No. 190) and
(DFGY (2012) DT No. 152) to Bank
of Communications Guangdong
Branch as collateral for the
borrowing.
2. According to the long-term loan
mortgage contract signed by Dongguan
Logistics and Dongguan Branch of
Agricultural Development Bank the
Company mortgaged the land (Yue (2016)
Dongguan Real Estate Property
No.0028527) of lands located in Jingang
South Road Zhangpeng Village Machong
Town Dongguan City to Dongguan
Branch of Agricultural Development Bank
as collateral for the loan.Total 70907004.64 --
Other explanation:
82. Foreign currency monetary
(1) Foreign currency monetary
In RMB
Item
Ending balance of foreign
currency
Convert rate
Ending balance of RMB
converted
Monetary funds -- -- 2802114.62
Including: USD 369521.03 7.0795 2616024.13
EURO
HKD 203724.92 0.9134 186090.49
Account receivable -- -- 1706438.43
Including: USD 223022.92 7.0795 1578890.76
EURO
HKD 139640.54 0.9134 127547.67
Long-term loans -- --
Including: USD
EURO
HKD
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 changed explain reasons
□ Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category disclosed qualitative and quantitative
information for the arbitrage risks:
84. Government grants
(1) Government grants
In RMB
Category Amount Item
Amount reckoned into current
gains/losses
(1) Base of further processing
for tea and nature plants
687500.00 Deferred income 137500.00
(2) Enterprise technology center
is a municipal R&D center.Subsidies for industrial
technological advancement
1681264.27 Deferred income 102012.30
(3) Project grants for years for
agricultural district Xihu Zone
118461.58 Deferred income 64615.38
(4)Key technology research and
development for the preparation
of high-quality aroma extracts
based on the use of tea aroma
precursors
129323.34 Deferred income 105790.60
(5)Key technology research and
development for the preparation
of high-quality aroma extracts
based on the use of tea aroma
precursors
30809.66 Deferred income 11000.00
(6) Industrialization of instant
tea powder
1789467.85 Deferred income 98222.94
(7) Grant for key technology
research and industrialization of
instant tea powder
131643.68 Deferred income 7122.51
(8) Special fund for the
development of strategic
emerging industries in
Shenzhen(plant deep processing
engineering) (Shen
Development & Reform No.
20131601)
3012079.33 Deferred income 175604.54
(9) Construction amount for 50
tons for clearly processing for
Mingyou tea
312499.96 Deferred income 62500.02
(10) Subsidy for tea seeding of
New Tea Garden in Wangkou
44466.04 Deferred income 554.64
(11) Subsidy for supply system
construction of agricultural
products
450000.00 Deferred income 100000.00
(12) Grain storage project of
Dongguan Shenliang Logistics
Co. Ltd. - Storage A
7849032.15 Deferred income 131128.56
(13) Phase II of grain storage
project of Dongguan Shenliang
Logistics Co. Ltd.- Storage B
31421748.74 Deferred income 515650.26
(14) Grain oil and food
headquarters and innovative
public service platform of
Dongguan Shenliang Logistics
Co. Ltd.
18000000.00 Deferred income
(15) Special funds for
intelligent upgrading and
transformation of grainwarehouse for the 2017 “GrainSafety Project”
11320000.00 Deferred income
(16) Construction of 450000 ton
silos and 60000 ton film silos
-CDE warehouse. Gas storage
bin
17371135.87 Deferred income 16511.20
(17) Special fund for
agricultural development of
2016- agricultural product
safety testing project- capacity
building of the third party
inspection institution expansion
evaluation
328000.00 Deferred income
(18) Agricultural product safety
testing project of the special
fund for agricultural
development of 2016 -
Central investment fund
684000.00 Deferred income
(19) Construction of O2O
community sales service system
for high quality grain and oil
based on B2C E-commerce
platform
1731547.14 Deferred income 19288.02
(20) Industrialization of Doximi
E-commerce platform
1542259.81 Deferred income 418834.32
(21) Commercial circulation
development project funding for
year of 2017
524000.00 Deferred income
(22) Intelligent management of
grain depot based on mobile
internet
566666.58 Deferred income 100000.02
(23) Special Fund for Grain
Depot Upgrade of Shenzhen
Development and Reform
Commission
5000000.00 Deferred income
(23) Industrial development
guiding fund
2611248.00 Other income 2611248.00
(24) Post stabilization subsidy 34080.37 Other income 34080.37
(25) Shenzhen Futian District
Enterprise Development
Service Center retail industry
growth Award
2000000.00 Other income 2000000.00
(26) Other government
subsidies related to daily
business activities
4112896.49 Other income 4112896.49
(27) Other government
subsidies related to daily
business activities
10030.08 Non-operating income 10030.08
Total 113494160.94 10834590.25
(2) Government grants rebate
□ Applicable √Not applicable
Other explanation:
85. Other
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control
In RMB
Acquiree
Time point
for equity
obtained
Cost of
equity
obtained
Ratio of
equity
obtained
Acquired
way Equity
obtained way
Purchasing
date
Standard to
determine the
purchasing
date
Income of
acquiree from
purchasing
date to
period-end
Net profit of
acquiree from
purchasing
date to
period-end
Other explanation:
(2) Combination cost and goodwill
In RMB
Combination cost
Determination method for fair value of the combination cost and contingent consideration and changes:
Main reasons for large goodwill resulted:
Other explanation:
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other explanation:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other explanation
2. Enterprise combined under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Acquiree
Equity ratio
obtained in
combination
Basis of
combined
under the
same control
Combination
date
Standard to
determine the
combination
date
Income of the
combined
party from
period-begin
of
combination
to the
combination
date
Net profit of
the combined
party from
period-begin
of
combination
to the
combination
date
Income of the
combined
party during
the
comparison
period
Net profit of
the combined
party during
the
comparison
period
Other explanation:
(2) Combination cost
In RMB
Combination cost
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the assets and liability of the combined party on combination date
In RMB
On purchasing date At end of last period
Contingent liability of the combined party bear 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 Subsidiary
Whether there is a subsidiary disposal on one time which is loss control of rights
□Yes √No
Whether there is a subsidiary disposal by steps through multiple trading and loss control of rights in the period
□Yes √No
5. Other reasons for consolidation range changed
Consolidation scope changes caused by other reasons (eg newly establish subsidiaries liquidate subsidiaries etc.) and the related
circumstances:
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary
Main operation
place
Registered
place
Business nature
Share-holding ratio
Acquired way
Directly Indirectly
Shenbao
Huacheng
Shenzhen Shenzhen Manufacturing 100.00% Establishment
Wuyuan Ju
Fang Yong
Shangrao Shangrao Manufacturing 100.00% Establishment
Shenbao
Sanjing
Huizhou Shenzhen Manufacturing 100.00% Establishment
Huizhou
Shenbao
Technology
Huizhou Huizhou Comprehensive 100.00% Establishment
Shenbao
Property
Shenzhen Shenzhen
Property
management
100.00% Establishment
Shenbao
Industrial &
Trading
Huizhou Shenzhen
Wholesale
business
100.00% Establishment
Ju Fang Yong
Holding
Hangzhou Hangzhou Comprehensive 100.00% Establishment
Shenbao
Technology
Center
Shenzhen Shenzhen
Development
consultant and
transfer of
technology
100.00% Establishment
Fuhaitang
Ecological
Hangzhou Hangzhou
Tea planting
production and
sales
100.00% Acquisition
Shenshenbao
Investment
Shenzhen Shenzhen
Investment
management
100.00% Establishment
Shenshenbao
Tea Culture
Shenzhen Shenzhen Commerce 100.00% Establishment
Ju Fang Yong
Trading
Hangzhou Hangzhou
Wholesale
business
60.00% Establishment
Pu'er Tea
Supply Chain
Pu’er Pu’er
Wholesale
business
100.00% Establishment
Huizhou
Shenbao Food
Huizhou Huizhou
Wholesale
business
100.00% Establishment
Shenbao Rock
Tea
Wuyishan Wuyishan Manufacturing 100.00% Establishment
Pu’er Tea
Trading Center
Pu’er Pu’er
Service
industry
55.00% Establishment
Shenbao
Tea-Shop
Shenzhen Shenzhen Commerce 100.00% Establishment
Fuhaitang
Catering
Hangzhou Hangzhou Catering 100.00% Establishment
SZCG Shenzhen Shenzhen
Grain & oil
trading
100.00%
Combine under
the same
control
Shenzhen Flour Shenzhen Shenzhen
Flour
processing
100.00%
Combine under
the same
control
Hualian Shenzhen Shenzhen Grain & oil 100.00% Combine under
Company trading the same
control
Hainan Haitian Haikou Haikou
Feed
production
100.00%
Combine under
the same
control
Shenliang
Quality
Inspection
Shenzhen Shenzhen Inspection 100.00%
Combine under
the same
control
Doximi Shenzhen Shenzhen E-commerce 100.00%
Combine under
the same
control
Shenliang Cold
Chain
Shenzhen Shenzhen
Fresh food
management
on-line
100.00%
Combine under
the same
control
Beige Kitchen Shenzhen Shenzhen
Sales and
processing of
grain oil and
products
70.00%
Combine under
the same
control
Shenliang
Property
Shenzhen Shenzhen
Real estate
development
and property
management
100.00%
Combine under
the same
control
Shenliang
Property
Shenzhen Shenzhen
Property
management
100.00%
Combine under
the same
control
Shenliang
Storage
(Yingkou)
Yingkou Yingkou Storage 100.00%
Combine under
the same
control
Dongguan
Logistics
Dongguan Dongguan
Storage
logistics
51.00%
Combine under
the same
control
Dongguan
Food Industrial
Park
Dongguan Dongguan
Port operation
food
production
51.00%
Combine under
the same
control
Dongguan
Food Industry
and Trade
Dongguan Dongguan
Food
production
51.00%
Combine under
the same
control
Dongguan
Jinying
Dongguan Dongguan
Feed
biofertilizer
51.00%
Combine under
the same
control
Shuangyashan
Shenliang
Zhongxin
Shuangyashan Shuangyashan
Construction of
food base and
development of
related
complementary
facility
51.00%
Combine under
the same
control
Hongxinglong
Nongken
Industrial Park
Shuangyashan Shuangyashan
Construction of
food base and
development of
related
complementary
facility
51.00%
Combine under
the same
control
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights:
Major structured entity included in consolidates statement:
Basis of termination of agent or consignor:
Other explanation:
(2) Important non-wholly-owned subsidiary
In RMB
Subsidiary
Share-holding ratio of
minority
Gains/losses attributable
to minority in the Period
Dividend announced to
distribute for minority in
the Period
Ending equity of
minority
Dongguan Logistics 49.00% 1143890.72 162491200.57
Explanation on holding ratio different from the voting right ratio for minority shareholders:
Other explanation:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsidia
ry
Ending balance Opening balance
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Donggua
n
Logistics
216674
721.83
157856
6224.93
179524
0946.76
210501
395.32
953124
856.41
116362
6251.73
179203
637.28
146904
2115.86
164824
5753.14
208523
832.06
930441
696.91
113896
5528.97
In RMB
Subsidiary Current Period Last Period
Operating
income
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Operating
income
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Dongguan
Logistics
881895886.
45
7709470.86 7709470.86
-39152386.6
5
122244975
5.98
11109676.5
6
11109676.5
6
97553848.2
8
Other explanation:
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or
Associated
enterprise
Main operation
place
Registered place Business nature
Share-holding ratio Accounting
treatment on
investment for
joint venture and
associated
enterprise
Directly Indirectly
Zhuhai Hengxing
Feed Industrial
Co. Ltd.
Zhuhai Zhuhai
Aquatic fee and
animal fee
40.00% Equity
Shenliang
Intelligent Wulian
Equity
Investment Fund
(Shenzhen)
Partnership
Enterprise
(Limited)
Shenzhen Shenzhen
Equity
investment;
investment
consultant
49.02% Equity
Holding shares ratio different from the voting right ratio:
Has major influence with less 20% voting rights hold or has minor influence with over 20% (20% included) voting rights hold:
(2) Main financial information of the important joint venture
In RMB
Ending balance/Current Period Opening balance/Last Period
Other explanation
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current Period Opening balance/Last Period
Zhuhai Hengxing Feed
Industrial Co. Ltd.Shenliang Intelligent
Wulian Equity
Investment Fund
(Shenzhen) Partnership
Enterprise (Limited)
Zhuhai Hengxing Feed
Industrial Co. Ltd.Shenliang Intelligent
Wulian Equity
Investment Fund
(Shenzhen) Partnership
Enterprise (Limited)
Current assets 190276412.01 20811417.28 74426214.45 21145350.77
Non current assets 30996058.91 31741080.47 31819375.02 31759785.55
Total Assets 221272470.92 52552497.75 106245589.47 52905136.32
Current liabilities 141617315.43 26931271.22
Non current liabilities 583332.69 629319.69
Total liabilities 142200648.12 27560590.91
Shareholders' equity
attributable to the parent
company
79071822.80 52552497.75 78684998.56 52905136.32
Share of net assets
calculated by
shareholding ratio
31628729.12 25761234.39 31473999.42 25934097.82
Adjustment items 229181.18 -174.47 162707.80 -174.47
--Others 229181.18 -174.47 162707.80 -174.47
Book value of equity
investment in associated
enterprises
31857910.30 25761059.92 31636707.22 25933923.35
Business income 259095047.79 214083220.07
Net profit 3337583.11 -352638.57 1644897.90 -853119.60
Total comprehensive
income
3337583.11 -352638.57 1644897.90 -853119.60
Other explanation
(4) Financial summary for non-important Joint venture and associated enterprise
In RMB
Ending balance/Current Period Opening balance/Last Period
Joint venture: -- --
Amount based on share-holding ratio -- --
Associated enterprise: -- --
Total book value of investment 13946407.26 15790681.53
Amount based on share-holding ratio -- --
-- Net profit 415495.06 6304978.23
-- Total comprehensive income 415495.06 6304978.23
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
Joint venture/Associated
enterprise
Cumulative un-recognized
losses
Un-recognized losses not
recognized in the Period (or net
profit enjoyed in the Period)
Cumulative un-recognized
losses at period-end
Changzhou Shenbao Chacang
E-business Co. ltd.
8650425.68 14913.33 8665339.01
Shenzhen Shichumingmen
Restaurant Management Co.Ltd.
3815595.01 541250.52 4356845.53
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
Name
Main place of
operation
Registration place Business nature
Shareholding ratio/ shares enjoyed
Directly In-directly
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity basis of the co-runs classification:
Other explanation
5. Structured body excluding in consolidate financial statement
Explanation of structured body excluding in consolidate financial statement:
6. Other
X. Disclosure of risks relating to financial instruments
Our business operation makes the Company exposed to various financial risks: credit risk liquidity risk and
market risk (mainly refers to exchange risk and interest risk). The general risk management policy of the
Company is to minimize potential negative effects on our financial performance in view of the unforeseeable
financial market.
1. Credit risk
Credit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractual
obligations. The credit risk mainly arises from monetary funds account receivable and other account receivable so
on. The management has established adequate credit policies and continues to monitor exposure of these credit
risks.The monetary funds held by the Company are mainly deposited in state-controlled banks and other large and
medium-sized commercial banks and other financial institutions. The management believes that these commercial
banks have high reputation and asset status and have no major credit risk and won't create any major losses
caused by the breach of contract of the opposite side.
For trade receivables and other receivables the Company establishes relevant policies to control exposure of
credit risk. The Company appraises customers’ credit quality based on their financial position possibility to
obtain guarantee from third parties credit history and other factors such as prevailing market conditions and set
corresponding credit terms. Customers’ credit history would be regularly monitored by the Company. For those
customers who have bad credit history the Company will call collection in written form shorten credit term or
cancel credit term to ensure its overall credit risk is under control.The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (including
derivative financial instrument). The Company has not provided any guarantee which would otherwise make the
Company exposed to credit risk except for the guarantee for financial carried in Note XI.
2. Liquidity risk
Liquidity risk represents the possibility that the Company is not able to acquire sufficient fund to satisfy business
requirement settle debt when it is due and perform other obligation of payment.The finance department continues to monitor capital requirement for short and long term to ensure adequate cash
reserve. In addition it continues to monitor whether borrowing agreement is complied with and seeks for
commitment from major financial institutions for provision of sufficient back-up fund so as to satisfy capital
requirement in a short and long term.
3. Market risk
(1) Exchange risk
The major operation of the Company is located in the PRC and its major operation is settled in Renminbi.However there is also exchange risk in respect of the recognized foreign currency assets and liabilities and future
foreign currency transactions which are mainly denominated in US dollar. Our finance department is responsible
for monitoring scale of foreign currency assets and liabilities and foreign currency transactions to minimize its
exposure to exchange risks. In reporting period the Company did not sign forward exchange contract or monetary
exchange contract.The foreign exchange risk faced by the company mainly comes from financial assets and financial liabilities
denominated in US dollars. The amount of foreign currency financial assets and foreign currency financial
liabilities converted into RMB is detailed in VII. Consolidated Financial Statement Item Note 82 Foreign
Currency Monetary
(2) Interest risk
Our interest risk mainly arises from bank borrowings. Financial liabilities at floating rate expose the Company to
cash flow interest risk and financial liabilities at fixed rate expose the Company to fair value interest risk. The
Company determines the respective proportion of contracts at fixed rate and floating rate based on prevailing
market conditions.The financial department of the Company continuously monitors the interest rate of the Company. The rise in
interest rates will increase the cost of new interest-bearing debts and the interest expense of the Company’s unpaid
interest-bearing debts with floating interest rates management will make timely adjustments based on the latest
market conditions.
(3) Price risk
The Company purchases and sells products at market prices therefore it is affected by fluctuation of these prices.XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item
Ending fair value
First-order Second-order Third-order Total
I. Sustaining measured by
fair value
-- -- -- --
1.Financial assets
measured by fair value
and with variation
reckoned into current
gains/losses
593425.30 593425.30
(2) Equity instrument
investment
593425.30 593425.30
Other non current
financial assets
57500.00 57500.00
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
The financial assets measured at fair value and whose changes are included in the current profit and loss are company stocks listed on
the Shenzhen Stock Exchange held by the Company and the closing price on June 30 is used as the fair value of the equity
instrument investment.3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-order
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
6. Sustaining items measured by fair value as for the conversion between at all levels reasons for
conversion and policy for conversion time point
7. Changes of valuation technique in the Period
8. Financial assets and liability not measured by fair value
9. Other
For other non-current financial assets held since the business environment operating conditions and financial status of the invested
company have not undergone major changes the company shall use the investment cost as a reasonable estimate of the fair value for
measurement.XII. Related party and related transactions
1. Parent company
Parent company Registration place Business nature Registered capital
Ratio of shareholding
on the Company
Ratio of voting right
on the Company
Shenzhen Food
Materials Group Co.Ltd
Shenzhen
Investing in industry
development
operation and
management of the
own property
500 million Yuan 63.79% 63.79%
Explanation on parent company of the enterprise
Ultimate controller of the Company is Shenzhen Municipal People’s Government State-Owned Assets Supervision and
Administration Commission.
Other explanation:
2. Subsidiary
Subsidiary of the Company found more in Note "1. Equity in subsidiaries" of Note IX-Equity in other entity
3. Joint venture and associated enterprise
Joint Venture of the Company found more in Note "3. Equity in joint arrangement or joint venture" of Note IX-Equity in other entity
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period:
Joint venture/Associated enterprise Relationship
Shenzhen Shichumingmen Catering Management Co. Ltd. Joint venture of the company
SHENZHEN SYDATATECHNOLOGY CO. LTD Joint venture of the company
Other explanation
4. Other related party
Other related party Relationship with the Enterprise
Shenzhen Agricultural Products Co. Ltd
Shareholder of the Company subsidiary of the actual controller
controlled by the same ultimate controlling party
Zhanjiang Haitian Aquatic Feed Co. Ltd
Subsidiary of the actual controller Controlled by the same
ultimate controlling party
Dongguan Fruit and Vegetable Non-staple Food Market Co. Ltd Minority shareholder of controlling subsidiary
Taizhong Agricultural Co. Ltd
Subsidiary of the actual controller Controlled by the same
ultimate controlling party
Shenzhen Investment Holding Co. Ltd
Former shareholder of the Company Controlled by the same
ultimate controlling party
Shenzhen Investment Management Co. Ltd
Former shareholder of the Company Controlled by the same
ultimate controlling party
Fujian Wuyishan Yuxing Tea Co. Ltd. Minority shareholder of former controlling subsidiary
Shenzhen Fruits and Vegetables Trading Co. Ltd.Wholly-owned subsidiary of Shenzhen Agricultural Products
Co. Ltd
Shenzhen Higreen International Agricultural Products Logistic
Management Co. Ltd
Controlling subsidiary of Shenzhen Agricultural Products Co.
Ltd
Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co.Ltd
Has the same parent company
Shenzhen Shenliang Cold Transport Co. Ltd. Holding subsidiary of the company's associated enterprise
Shenzhen Yixin Investment Co. Ltd
Former shareholder of Shenzhen Agricultural Products Co. Ltd
Controlled by the same ultimate controlling party
Other explanation
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party
Related transaction
content
Current Period
Approved transaction
limit
Whether more than
the transaction limit
(Y/N)
Last Period
SHENZHEN
SYDATA
TECHNOLOGY
CO. LTD
Information
software
development
5290531.23
Shenzhen Shenliang
Cold Transport Co.
Ltd.Warehousing
Services
178503.88
Goods sold/labor service providing
In RMB
Related party Related transaction content Current Period Last Period
Shenzhen Food Materials
Group Co. Ltd
Payment 2510.00
SHENZHEN SYDATA
TECHNOLOGY CO. LTD
Office space lease 15358.00
Shenzhen Agricultural
Products Group Co. Ltd
Sales of tea 219560.00
Shenzhen Agricultural
Products Group Co. Ltd
Grain and oil 52800.00
Shenzhen Higreen
International Agricultural
Products Logistic
Management Co. Ltd
Sales of tea 7410.00
Shenzhen Fruits and
Vegetables Trading Co. Ltd.Sales of tea 3270.00
Explanation on goods purchasing labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/ outsourcing
Trusteeship management/contract:
In RMB
Client/Contract-o
ut party
Entrusting
party/Contractor
Trustee/assets
contract
Trustee /start Trustee /ends
Managed
earnings /pricing
of the contract
earnings
Managed
earnings
confirmed in the
period / contract
earnings
Related managed/contract:
Entrusted management/outsourcing:
In RMB
Client/Contract-o
ut party
Entrusting
party/Contractor
Trustee/assets
contract
Trustee /start Trustee /ends
Managed
earnings /pricing
of the contract
earnings
Managed
earnings
confirmed in the
period / contract
earnings
Related management/ outsourcing:
(3) Related lease
As a lessor for the Company:
In RMB
Lessee Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the Period
Shichumingmen Operating site 580466.28 580466.28
Shenzhen Food Materials
Group Co. Ltd
Office space lease 84300.00
As lessee:
In RMB
Lessor Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the Period
Shenzhen Food Materials
Group Co. Ltd
Warehouse leasing 14217100.02 14217100.00
Shenzhen Food Materials
Group Co. Ltd
Office space 268542.85 345038.85
Explanation on related lease
(4) Related guarantee
As guarantor
In RMB
Secured party Guarantee amount Guarantee start date Guarantee expiry date
Whether the guarantee
has been fulfilled
Changzhou Shenbao
Chacang E-business Co.
Ltd. *1
5000000.00 2011-12-20 N
As secured party
In RMB
Guarantor Guarantee amount Guarantee start date Guarantee expiry date
Whether the guarantee
has been fulfilled
Dongguan Fruit
Vegetable Non-staple
Food Trading Market
Co. Ltd.
44227477.40 2016-12-27 2021-12-26 No
Dongguan Fruit
Vegetable Non-staple
Food Trading Market
Co. Ltd.
251655864.84 2018-07-27 2032-08-29 No
Dongguan Fruit
Vegetable Non-staple
Food Trading Market
Co. Ltd. *2
45874627.78 2019-05-09 No
Dongguan Houjie Xunda
Industrial Co. Ltd.
16534635.16 2019-01-25 2031-01-24 No
Dongguan Fruit
Vegetable Non-staple
Food Trading Market
Co. Ltd.
16534635.16 2019-01-25 2031-01-24 No
Explanation on related guarantee
*1 The related guarantee will last until the principal and interest of the loan are settled.
*2 The maturity date of the related guarantee is two years after the expiry date or two years after the refund date.
(5) Related party’s borrowed funds
In RMB
Related party Borrowing amount Starting date Maturity date Note
Borrowing
Lending
(6) Related party’s assets transfer and debt reorganization
In RMB
Related party Related transaction content Current Period Last Period
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable
In RMB
Item Name Related party
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Other account
receivable
Changzhou
Shenbao Chacang
E-business Co.
ltd.
24255375.15 21768266.87 24350611.65 21803513.37
Other account
receivable
Shenzhen
Shichumingmen
Catering
Management Co.Ltd.
1947256.59 469107.98 1382651.77 469107.98
Other account
receivable
Shenzhen Higreen
International
Agricultural
Products Logistic
Management Co.Ltd
50000.00 50000.00
Other account
receivable
Shenzhen
Shenliang Cold
Transport Co. Ltd.
3831.12 3831.12
Other account
receivable
Shenzhen
Investment
Holdings Co. Ltd.
415644.52 415644.52
Other account
receivable
SHENZHEN
SYDATA
TECHNOLOGY
CO. LTD
3727757.63 50714.11
(2) Payable
In RMB
Item Name Related party Ending book balance Opening book balance
Dividend payable
Shenzhen Investment
Management Co. Ltd
2690970.14 2690970.14
Other account payable
Shenzhen Food Materials
Group Co. Ltd
160648886.31 219472.47
Other account payable
Shenzhen Duoxi Equity
Investment Fund
Management Co. Ltd.
41486.00 41486.00
Other account payable
Shenzhen Shichumingmen
Catering Management Co.
Ltd.
184275.00
Other account payable
Shenzhen Shenliang Cold
Transport Co. Ltd.
2790.00 2790.00
Other account payable
Zhanjiang Changshan
(Shenzhen) Ecological
Aquaculture Co. Ltd
7999570.83 7988954.17
Other account payable
Shenzhen Investment
Management Co. Ltd
3510297.20 3510297.20
7. Related party commitment
8. Other
XIII. Share-based payment
1. Overall situation of share-based payment
□ Applicable √Not applicable
2. Share-based payment settled by equity
□ Applicable √Not applicable
3. Share-based payment settled by cash
□ Applicable √Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments on balance sheet date
The Company has no important commitments that need to be disclosed up to 30 June 2020.
2. Contingency
(1) Contingency on balance sheet date
1) Disputes over the loan contracts between Changzhou Shenbao Chacang E-commence Co. Ltd. the Company
and Shenzhen Agricultural Products Financing Guarantee Co. Ltd.On July 15 2016 Shenzhen Agricultural Products Financing Guarantee Co. Ltd. (hereinafter referred to as
Agricultural Products Guarantee Company) submitted a “Civil Appeal” to the People’s Court of Futian District
Shenzhen requesting Changzhou Shenbao Chacang E-commence Co. Ltd. (hereinafter referred to as Changzhou
Shenbao Chacang Company)to repay the loan principal amount of RMB 5000000.00 the interest of RMB
389968.52 and the interest penalty of RMB 3200271.79 (the interest penalty was temporarily calculated to June
30 2016 which shall be actually calculated to the date of the full repayment of the borrowing); and pay the
compensation of RMB 100000.00 (5 million Yuan × 2%); two items in total were RMB 8690240.31; the
Company undertook joint liability for the loan of RMB 5000000.00.
On May 31 2017 Shenzhen Futian District Court made the first-instance judgment and ruled Changzhou
Shenbao Chacang Company to repay the loan principal of RMB 5 million and the interest and interest penalty the
Company did not need to undertake joint liability for the loan of RMB 5 million of Changzhou Shenbao Chacang
Company. On July 4 2017 the Agricultural Products Guarantee Company filed an appeal on October 13 2017
and Shenzhen Intermediate People’s Court held the second instance hearing. On April 26 2019 the Shenzhen
Intermediate People's Court made a civil judgment (Civil Judgment (2017) Yue 03 Min Zhong No. 12296) and
judged Shenzhen Shenbao Industrial Co. Ltd. (now renamed as Shenzhen Cereals Holdings Co. Ltd.) to
undertake a joint and several liability for the of Changzhou Shenbao Chacang E-Commerce Co. Ltd. within the
scope of 3.5 million yuan. Shenzhen Shenbao Industrial Co. Ltd. (now renamed as Shenzhen Cereals Holdings
Co. Ltd.) has the right to claim compensation from Changzhou Company after the payment. Currently the
judgment has taken effect.
As of June 30 2020 the company confirmed the estimated debt of 3.5 million yuan.
2) Contract disputes between Mount Wuyi Shenbao Rock Tea Co. Ltd. (hereinafter referred to as Wuyishan Rock
Tea Company) and Hangzhou Ju Fang Yong Holding s Co. Ltd. (hereinafter referred to as Jufangyong Company)
and Wuyishan Jiuxing Tea Co. Ltd. (hereinafter referred to as Jiuxing Company) Fujian Wuyishan Yuxing Tea
Co. Ltd. (hereinafter referred to as Yuxing Company) Xingjiu Tea Co. Ltd. Chen Yuxing Chen Guopeng
On September 22 2017 Jufangyong Company Xingjiu Tea Co. Ltd. Yuxing Company Chen Yuxing and Chen
Guopeng signed an “Formal Agreement on the Separation of Fujian Wuyishan Shenbao Yuxing Tea Co. Ltd.”
according to the separation agreement: the original Shenbao Yuxing Company was separated after the separation
Jufangyong Company held 100% equity of the newly established company (i.e. Shenbao Rock Tea Company)
and Yuxing Company and Xingjiu Tea Company jointly held 100% equity of the surviving company (Jiuxing
Company); Shenbao Rock Tea Company got receivables of 7273774.01 yuan which was guaranteed by Jiuxing
Company to achieve 2 million yuan within one year after separation and the remaining amount would be returned
within 2 years. Chen Yuxing and Chen Guopeng as the actual controllers of Jiuxing Company Yuxing Company
and Xingjiu Tea Company assumed joint responsibility for the joint guarantee to Shenbao Rock Tea Company and
Jufangyong Company for all the obligations and responsibilities stipulated in the “Separation Agreement”.
As of September 22 2018 the time limit stipulated in the “Separation Agreement” for the realization of four
receivables had expired and Shenbao Rock Tea Company still had 5212301.40 yuan unrecovered. On December
6 2018 Shenbao Rock Tea Company and Hangzhou Jufangyong Company applied for arbitration to Shenzhen
Court of International Arbitration (Shenzhen Arbitration Commission) for the above matters and requested
Jiuxing Company to pay 5272934.01 yuan to Shenbao Rock Tea Company and requested Yuxing Company
Xingjiu Tea Company Chen Yuxing and Chen Guopeng to assume joint liability.
On April 18 2019 Shenzhen International Arbitration Court heard the arbitration case in court. Since relevant
matters are still to be determined and ascertained the two parties concerned shall provide supplementary defense
materials to the court. Currently the case has not yet been arbitrated by Shenzhen International Arbitration Court.
As of the date of approval of the financial statements the Shenzhen Arbitration Commission has not yet
determined the arbitrator and the date of the hearing. As of 30 June 2020 the company has accrued
4469493.65 yuan bad debt provision.
3) Disputes on mung bean business between Shenzhen Cereals Group (SZCG) and Jilin Tongyu County Shengda
Company
In August 2007 Shenzhen Cereals Group and Tongyu County Shengda Grain and Oil Trading Co. Ltd.(hereinafter referred to as Shengda Company) signed the “Mung Bean Entrusted Acquisition Processing andStorage Contract” from October 2007 to May 2008 totally 4918.00 tons of mung beans were acquired the
Company paid payment for goods of 30 million yuan. According to the contract after the completion of the
entrusted acquisition Shengda Company has the obligations to assist in the sale of goods and buy-back. Shengda
Company did not fully fulfill its obligations and Shenzhen Cereals Group also carried out various forms of
collection. In September 2010 Shenzhen Cereals Group sued Shengda Company for repayment of its arrears and
interest. The two parties reached an accommodation during the court trial and Futian District People’s Court of
Shenzhen issued a “Paper of Civil Mediation” but Shengda Company did not fully fulfill the repayment
obligation Shenzhen Cereals Group has applied to the court for enforcement.
As of 30 June 2020 the book receivables amounted to RMB 5602468.81 and the execution of remaining funds
has large uncertainties. The Company has fully made provision for bad debts of RMB 5602468.81.4) Contract disputes among Shenzhen Cereals Group Hualian Grain and Oil Guangzhou Jinhe Feed Co. Ltd. and
Huang Xianning Import Agent
From October 2005 to January 2007 Shenzhen Cereals Group Hualian Grain and Oil and Guangzhou Jinhe Feed
Co. Ltd. (hereinafter referred to as Guangzhou Jinhe Company) signed 20 “Import Agent Contracts” agreed that
Shenzhen Cereals Group and Hualian Grain and Oil agent Guangzhou Jinhe Company to import Peruvian
fishmeal. In August 2007 Hualian Grain and Oil Guangzhou Jinhe Company and Huangxianning signed the
“Guarantee Contract” agreed that Huangxianning would guarantee that all payables of Guangzhou Jinhe
Company under the trade contracts signed by Hualian Grain and Oil and Guangzhou Jinhe Company would be
paid on time. Later due to Guangzhou Jinhe Company’s insufficient payment of goods and import agency fees
Shenzhen Cereals Group and Hualian Grain and Oil filed a lawsuit to Futian District People’s Court of Shenzhen.
On February 16 2015 the Futian District People’s Court of Shenzhen made the first-instance judgment ([2014]
SFFMECZ No. 786) and sentenced Guangzhou Jinhe Company to pay RMB 10237385.74 to Shenzhen Cereals
Group and Hualian Grain and Oil and bear the case acceptance fee of RMB 83224.00; Huang Xianning does not
need to bear the joint and several liability.
As Guangzhou Jinhe Company refused to accept the above first-instance judgment it lodged an appeal to the
Shenzhen Intermediate People’s Court claiming that the prosecution of Shenzhen Cereals Group and Hualian
Grain and Oil had exceeded the time limit for litigation. On March 30 2017 the Shenzhen Intermediate People’s
Court made the second-instance judgment (Civil Judgment [2015] SZFSZZ No.1767) and the judgment rejected
Guangzhou Jinhe Company’s appeal and upheld the original judgment.The case is still in enforcement and the other party has not paid any money Shenzhen Cereals Group has made
provision for bad debts in proportion to 100% of the accounts receivable of RMB 10455600 of Guangzhou Jinhe
Company.
According to the “Commitment Letter of Shenzhen Fude State-owned Capital Operation Co. Ltd. on the PendingLitigation of Shenzhen Cereals Group Co. Ltd.” If Shenzhen Cereals Group Co. Ltd. and its holding subsidiaries
suffer any claims compensation losses or expenses due to the contract disputes with Guangzhou Jinhe Feed Co.Ltd. and Huangxianning Import Agent Shenzhen Fude State-owned Capital Operation Co. Ltd. will assume the
compensation or loss caused by the lawsuits.
5) Contract disputes between Hualian Grain and Oil Company and Zhuhai Doumen Huabi Feed Factory
On December 9 2004 Hualian Grain and Oil Company signed a purchases and sales contract with Zhuhai
Doumen Huabi Feed Factory to sell 2000.00 tons of corn with payment for goods of RMB 2396300 but the
payment has not been taken back. In April 2005 Hualian Grain and Oil Company discovered that Zhuhai Doumen
Huabi Feed Factory had basically stopped production and the goods were transferred the legal representative
Liang Dongxing had fled. On July 2 2005 the public security organ arrested Liang Dongxing. Hualian Company
has prosecuted him and won in the lawsuit and the lawsuit has been settled and in enforcement.As of 30 June 2020 Hualian Grain and Oil Company had received RMB 2396300 from Zhuhai Doumen Huabi
Feed Factory Hualian Grain and Oil Company had made 100% of bad debt provision for this amount.
6) Contract disputes between Hualian Grain and Oil Company and Foshan Shunde District Huaxing Feed Factory
In August and October 2007 Hualian Grain and Oil Company sold goods to Foshan City Shunde District Huaxing
Feed Factory and received a total of RMB 2958600 of commercial acceptance bills. Due to the company’s
overdue payment Hualian Grain and Oil Company filed a lawsuit with the People’s Court of Shunde District
Foshan City on October 29 2007 requesting Foshan City Shunde District Huaxing Feed Factory to repay the
payment for goods and pay the corresponding interests. From June to July 2011 totally took back the company’s
bankruptcy property settlement of RMB 1638900.
As of 30 June 2020 Hualian Grain and Oil Company had receivables of RMB 1319700 from Foshan City
Shunde District Huaxing Feed Factory and it had made 100% of bad debt provision for this amount.
7) Contract disputes between Hualian Grain and Oil Company and Liangshuntong Company
On November 15 2019 Dalian Liangshuntong Supply Chain Management Co. Ltd. (hereinafter referred to as
"Liangshuntong Company") filed a civil lawsuit with Shenzhen Futian District People's Court (hereinafter referred
to as "Futian Court") on the grounds of contract disputes requiring Shenzhen Hualian Grain and Oil Trading Co.Ltd. (hereinafter referred to as "Hualian Grain and Oil Company") to return the deposit of 30 million yuan
interest of 652500 yuan the corn supply chain service fee of 50 million yuan and the settlement payment of
2259200 yuan totaling 33.4117 million yuan.
On November 20 2019 Hualian Grain and Oil Company filed a counterclaim against Liangshuntong Company
with the following claims: 1. Order Liangshuntong Company to pay Hualian Grain and Oil Company the profit
and loss difference of the purchase and sales contract and all the expenses incurred by the corn business of
26504205.13 yuan and the cost of capital of 10336285.11 yuan (the cost of capital should be calculated until the
date of actual payment and it is temporarily calculated until November 25 2019) totaling 36840490.24 yuan; 2.Order that the litigation costs of this case shall be borne by Liangshuntong Company. The case is under trial.
On December 10 2019 Hualian Grain and Oil Company filed a lawsuit with Futian Court with the claims: 1.
Order Liangshuntong Company to pay Hualian Grain and Oil Company the profit and loss difference of the
purchase and sale contract and all the expenses incurred by the corn business of 461856.61 yuan and the cost of
capital of 4030008.42 yuan (the cost of capital should be calculated until the date of actual payment and is
currently calculated until December 10 2019) which totals 4491865.03 yuan; 2. Order that the litigation costs in
this case shall be borne by Liangshuntong Company. The case is under trial.
8) Construction contract dispute case between Heilongjiang Hongxinglong Nongken Shenxin Grain Industrial
Park Co. Ltd. (hereinafter referred to as "Hongxinglong Grain Industrial Park Company") and Heilongjiang
Zhishengda Construction Engineering Co. Ltd. (hereinafter referred to as "Zhishengda Company")
On May 8 2020 Hongxinglong Grain Industrial Park Company received legal instruments such as "Subpoena"
"Notice of Proof" "Notice of Response to Prosecution" "Civil Litigation Risk Warning Letter" and "Civil
Complaint" from the Hongxinglong People's Court Zhishengda Company filed a civil lawsuit with the
Hongxinglong People’s Court on the grounds of the construction contract dispute. The appeals are: 1. Request the
People’s Court to confirm the "Letter on Rectification of Completed Projects and Releasing Construction of
Unconstructed Projects" issued by Hongxinglong Grain Industrial Park Company on April 7 2020 does not have
the effect of terminating the contract and the termination of the contract made by it is invalid and judge that
Hongxinglong Grain Industrial Park Company shall continue to perform the contract (the cost of the performance
of contract is required to be 5137834.18 yuan). 2. The case acceptance fee and other litigation costs shall be
borne by Hongxinglong Grain Industrial Park Company. The case is under trial.
9)Legal service contract dispute case between Hainan Haitian Aquatic Feed Co. Ltd. (hereinafter referred to as
"Hainan Haitian Company") and Hainan Rights Protection Legal Service Co. Ltd. (hereinafter referred to as
"Hainan Rights Protection Company")
Hainan Rights Protection Company filed a civil lawsuit with the Meilan District People’s Court of Haikou City on
the grounds of legal service contract disputes. The appeals are: 1. Order Hainan Haitian Company to pay Hainan
Rights Protection Company agency fees of 600000 yuan; 2. Order Hainan Haitian Company to pay corresponding
late fees to Hainan Rights Protection Company; 3. Order Hainan Haitian Company to compensate Hainan Rights
Protection Company for economic losses of 300000 yuan; 4. Hainan Haitian Company shall bear the litigation
costs in this case. The case is under trial.(2) If the Company has no important contingency need to disclosed explain reasons
The Company has no important contingency that need to disclose.
3. Other
Nil
XV. 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
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Content Treatment procedure
Items impact during vary
comparative period
Accumulated impact
(2) Prospective application
Content Approval procedure Reasons
2. Debt restructuring
3. Assets exchange
(1) Exchange of non-monetary assets
(2) Other assets exchange
4. Pension plan
The main content and important changes of the annuity plan are detailed in Note V-34. Employee Compensation-2. The accounting
treatment method of post-employment benefits set contribution plan
5. Discontinuing operation
In RMB
Item Revenue Expenses Total profit
Income tax
expenses
Net profit
Profit of
discontinuing
operation
attributable to
owners of parent
company
Other explanation
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
In RMB
Item Offset between segment Total
(3) The Company has no segment or unable to disclose total assets and liability of the segment explain
reasons
(4) Other explanation
7. Other major transaction and events makes influence on investor’s decision
8. Other
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category
In RMB
Category
Ending balance Opening balance
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Account receivable
with bad debt
provision accrual on
a single basis
28453.0
8
23.30%
28453.0
8
100.00% 28453.08 76.27% 28453.08 100.00%
Including:
Account receivable
with single minor
amount but with bad
debts provision
accrued on a single
basis
28453.0
8
23.30%
28453.0
8
100.00% 28453.08 76.27% 28453.08 100.00%
Account receivable
with bad debt
provision accrual on
portfolio
93669.1
1
76.70% 885.26 0.95% 92783.85 8852.60 23.73% 885.26 10.00% 7967.34
Including:
Accounts receivable
with provision for
bad debts by aging
analysis
8852.60 7.25% 885.26 10.00% 7967.34 8852.60 23.73% 885.26 10.00% 7967.34
Specific object
combination
84816.5
1
69.45% 84816.51
Total
122122.
19
100.00%
29338.3
4
92783.85 37305.68 100.00% 29338.34 7967.34
Bad debt provision accrual on single basis: 28453.08 Yuan
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Single provision 28453.08 28453.08 100.00%
Slightly possibly taken
back
Bad debt provision accrual on single basis:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: 885.26 Yuan
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Aging combination (1-2 years) 8852.60 885.26 10.00%
Specific object combination 84816.51
Total 93669.11 885.26 --
Explanation on portfolio determines:
Bad debt provision accrual on portfolio:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within 1 year (including 1 year) 84816.51
Within 1 year 84816.51
1-2 years 8852.60
Over 3 years 28453.08
Over 5 years 28453.08
Total 122122.19
(2) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category Opening balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written-off Other
Accrued by
combination
28453.08 28453.08
Accrued by single
item
885.26 885.26
Total 29338.34 29338.34
Including major amount bad debt provision that collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
(3) Account receivable actually written-off in the period
In RMB
Item Amount written-off
Including major account receivable written-off:
In RMB
Enterprise Nature Amount written-off Written-off causes
Procedure of
written-off
Resulted by related
transaction (Y/N)
Explanation on account receivable written-off:
(4) Top 5 account receivables at ending balance by arrears party
In RMB
Enterprise
Ending balance of accounts
receivable
Proportion in total receivables
at ending balance (%)
Bad debt preparation ending
balance
First 36534.00 29.92% 365.34
Second 34890.00 28.57% 348.90
Third 18456.50 8.19% 18456.50
Fourth 13392.51 15.11% 133.93
Fifth 9996.58 10.97% 9996.58
Total 113269.59 92.76%
(5) Account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
2. Other account receivable
In RMB
Item Ending balance Opening balance
Dividends receivable 650000000.00 260000000.00
Other account receivable 592937209.15 734149247.39
Total 1242937209.15 994149247.39
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening balance
2) Important overdue interest
Borrower Ending balance Overdue time Overdue causes
Whether impairment
occurs and its judgment
basis
Other explanation:
3) Accrual of bad debt provision
□ Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested enterprise) Ending balance Opening balance
Shenzhen Cereals Group Co. Ltd 650000000.00 260000000.00
Total 650000000.00 260000000.00
2) Important dividend receivable with account age over one year
In RMB
Item (or invested
enterprise)
Ending balance Account age
Reasons for not
collection
Whether impairment
occurs and its judgment
basis
3) Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation:
(3) Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Margin and deposit 233029.39
Intercourse funds and other 619895216.78 761135520.91
Total 620128246.17 761135520.91
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
TotalExpected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on Jan. 1 2020 204668.96 26781604.56 26986273.52
Balance of Jan. 1 2020
in the period
—— —— —— ——
Current accrual 204763.50 204763.50
Balance on Jun. 30 2020 204668.96 26986368.06 27191037.02
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including 1-year) 594633840.82
Within one year 594633840.82
1-2 years 436664.33
2-3 years 436664.33
Over 3 years 24621076.69
3-4 years 436664.33
4-5 years 505459.41
Over 5 years 23678952.95
Total 620128246.17
3) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category
Opening
balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written off Other
Combination
provision
204668.96 204668.96
Single provision
26781604.5
6
204763.50 26986368.06
Total
26986273.5
2
204763.50 27191037.02
Including major amount with bad debt provision reverse or collected in the period:
In RMB
Enterprise Amount reversal or collected Collection way
4) Other account receivable actually written-off in the period
In RMB
Item Amount written-off
Including important other account receivable written-off:
In RMB
Enterprise Nature Amount written-off Written-off causes
Procedure of
written-off
Resulted by related
transaction (Y/N)
Explanation on other account receivable written-off:
5) Top 5 other receivables at ending balance by arrears party
In RMB
Enterprise Nature Ending balance Account age
Ratio in total ending
balance of other
account receivables
Ending balance of
bad debt reserve
First Internal funds 224193802.86 Within one year 36.15%
Second Internal funds 212203760.22 Within one year 34.22%
Three Internal funds 110297766.37 Within one year 17.79%
Fourth Internal funds 26205575.88 Within one year 4.23%
Fifth Internal funds 23925375.15 Within one year 3.86% 21504266.87
Total -- 596826280.48 -- 96.25% 21504266.87
6) Other account receivables related to government grants
In RMB
Enterprise Government grants Ending balance Ending account age
Time amount and basis
for collection predicted
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
3. Long-term equity investment
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Investment for
subsidiary
3713214425.09 3713214425.09 3713214425.09 3713214425.09
Investment for
associates and
joint venture
2927628.53 2927628.53 5139058.21 2927628.53 2211429.68
Total 3716142053.62 2927628.53 3713214425.09 3718353483.30 2927628.53 3715425854.77
(1) Investment for subsidiary
In RMB
The invested
entity
Opening
balance
(book value)
Increase and decrease in current period
Ending
balance
(book value)
Ending
balance of
impairment
provision
Additional
investment
Reduce
investment
Provision for
impairment
Other
Huizhou
Shenbao
Technology
Co. Ltd.
60000000.0
0
60000000.0
0
Shenzhen
Cereals Group
Co.
Ltd.-headquar
ters
329141503
6.82
329141503
6.82
Shenzhen
Shenbao
Industry and
Trade
Development
Co. Ltd.
5500000.00 5500000.00
Shenzhen
Shenbao
Huacheng
Technology
Co. Ltd.
168551781.
80
168551781.
80
Shenzhen
Shenbao
Technology
Center Co.
Ltd.
54676764.1
1
54676764.1
1
Shenzhen
Shenbao
Sanjing Food
and Beverage
Development
Co. Ltd.
80520842.3
6
80520842.3
6
Shenzhen
Shenbao
Property
Management
2550000.00 2550000.00
Co. Ltd.
Shenzhen
Shenshenbao
Investment
Co. Ltd.
50000000.0
0
50000000.0
0
Total
371321442
5.09
371321442
5.09
(2) Investment for associates and joint venture
In RMB
investmen
t
company
Opening
balance
(book
value)
Current changes (+ -)
Ending
balance
(book
value)
Ending
balance
of
impairme
nt
provision
Additiona
l
investmen
t
Capital
reduction
Investme
nt gains
recognize
d under
equity
Other
comprehe
nsive
income
adjustmen
t
Other
equity
change
Cash
dividend
or profit
announce
d to
issued
Accrual
of
impairme
nt
provision
Other
I. Joint venture
II. Associated enterprise
Guangzho
u
Shenbao
Mendao
Tea Co.Ltd
2211429
.68
2162924
.05
-48505.6
3
0.00 0.00
Shenzhen
Shenbao
(Liaoyuan
)
Industrial
Company
0.00 57628.53
Shenzhen
Shenbao
(Xinmin)
Foods
Co. Ltd
0.00
2870000
.00
Changzho
u
Shenbao
Chacang
Subtotal
2211429
.68
2162924
.05
-48505.6
3
2927628
.53
Total
2211429
.68
2927628
.53
(3) Other explanation
4. Operating income and operating cost
In RMB
Item
Current Period Last Period
Income Cost Income Cost
Main business 191007.09 250130.28 31562730.23 29829293.00
Total 191007.09 250130.28 31562730.23 29829293.00
Information relating to revenue:
In RMB
Category Branch 1 Branch 2 Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligations:
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them yuan of revenue is expected to be recognized
in YEAR yuan of revenue is expected to be recognized in YEAR and yuan of revenue is expected to be recognized in YEAR.Other explanation:
5. Investment income
In RMB
Item Current Period Last Period
Long-term equity investment income
measured by equity
-48505.63 -135033.88
Investment income from disposal of
long-term equity investment
2337075.95
Dividend income 390473276.41
Income from financial products 50729.15 1567648.80
Total 392812575.88 1432614.92
6. Other
XVIII. 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
2326477.57
Governmental grants calculated into current
gains and losses (while closely related with
the normal business of the Company
excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard)
10824560.17
Fund occupation fee charged to
non-financial enterprises included in current
profit and loss
204763.50
Profit and loss of assets delegation on others’
investment or management
7544998.92
Except for the effective hedging business
related to the normal business of the
Company the fair value changes from
holding the tradable financial assets
derivative financial assets tradable
financial liability and derivative financial
liability; and investment income from
disposal of tradable financial assets
derivative financial assets tradable financial
liability and other creditors investment
-572784.42
Switch back of the impairment provision for
account receivable with impairment test on
single basis and contract assets
1176620.32
Other non-operating income and expense
other than the above mentioned ones
-3827866.72
Other gains and losses items complying with
definition for non-recurring gains and losses
337500.00
Less: Impact on income tax 3616736.56
Impact on minority interests 418928.46
Total 13978604.32 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss explain reasons
□ Applicable √Not applicable
2. ROE and earnings per share
Profits during report period Weighted average ROE
Earnings per share
Basic EPS (Yuan/share)
Diluted EPS
(Yuan/share)
Net profits belong to common stock
stockholders of the Company
4.66% 0.1828 0.1828
Net profits belong to common stock
stockholders of the Company after
deducting nonrecurring gains and
losses
4.35% 0.1707 0.1707
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □Not applicable
In RMB
Net profit Net assets
Current Period Last Period Ending balance Opening balance
Chinese GAAP 210738686.12 203168850.61 4400982300.34 4420751187.57
Items and amount adjusted by IAS:
Adjustment for other
payable fund of stock
market regulation
1067000.00 1067000.00
IAS 210738686.12 203168850.61 4402049300.34 4421818187.57
(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
Section XII. Documents available for Reference
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 and official copies of all documents which have been disclosed on Securities Times China Securities
Journal and Hong Kong Commercial Daily in the report period;
3. Original copies of 2020 Semi-Annual Report with signature of the Chairman.
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