深粮B:2022年半年度报告（英文版）

深圳市深粮控股股份有限公司2022年半年度报告全文

SHENZHEN CEREALS HOLDINGS CO.LTD.SEMI-ANNUAL REPORT 2022

【August 2022】

1深圳市深粮控股股份有限公司2022年半年度报告全文

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.Person in charge of the Company Hu Xianghai Head of Accounting Lu Yuhe and Head of

Accounting Institution (Accounting Supervisors) Wen Jieyu hereby confirm that the

Financial Report of Semi-Annual Report 2022 is authentic accurate and complete.All Directors are attended the Board Meeting for deliberation of this Report.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 itscountermeasures in the report investors are advised to pay attention to read “Risks andCountermeasures”in the report of Section III-Management Discussion and Analysis. This

report has been prepared in Chinese and English version respectively. In the event of

difference in interpretation between the two versions Chinese report shall prevail.The Company plans not to distributed cash dividend bonus and no capitalizing of common

reserves either.

2深圳市深粮控股股份有限公司2022年半年度报告全文

Contents

Section I Important Notice Contents and Interpretation.......................................................错误!未定义书签。

Section II Company Profile and Main Financial Inde....6

Section III Management Discussion and Analysis.......10

Section IV Corporate Governance......................28

Section V Enviornmental and Social Responsibility....29

Section VI Important Events..........................31

Section VII Changes in Shares and Particular about...40

Section VIII Preferred Stock..........................错

误!未定义书签。

Section IX Corporate Bonds............................错

误!未定义书签。

Section X Financial Report...........................47

3深圳市深粮控股股份有限公司2022年半年度报告全文

Documents Available for Reference

1. Text of financial statement with signature and seals of the person in charge of the Company person in charge of

accounting works and person in charge of accounting institution(accounting supervisor);

2. Original and official copies of all documents which have been disclosed during the reporting period;

3. Original copies of Semi-Annual Report 2022 with signature of the person in charge of the Company.

4深圳市深粮控股股份有限公司2022年半年度报告全文

Interpretation

Items Refers to Contents

SZCH/Listed Company /the Company/ Refers to Shenzhen Cereals Holdings Co. Ltd.Shenzhen Flour 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.Shenzhen Shenbao Huacheng Technology

Shenbao Huacheng Refers to

Co. Ltd.Shenzhen Hualian Grain and Oil Trading Co.Hualian Company Refers to

Ltd.Shenzhen Shenliang Cold Chain Logistics

Shenliang Cold Chain Refers to

Co. Ltd.Shenzhen Shenliang Property Development

Shenliang Property Refers to

Co. Ltd.Wuyuan Jufangyong Refers to Wuyuan County Jufangyong Tea Co. Ltd.Shenliang Food Refers to Huizhou Shenliang Food Co. Ltd.Grease Branch of Shenzhen Grain Group Co.Shenliang Grease Refers to

Ltd.Wuhan Jiacheng Refers to Wuhan Jiacheng Biotechnology Co. Ltd.Zhenping Company Refers to Zhenping Market Operation Tech. Co. Ltd.Food Materials Group Refers to Shenzhen Food Materials Group Co. Ltd

Shenzhen Municipal People’s Government

Shenzhen SASAC Refers to State-owned Assets Supervision &

Administration Commission

CSRC Refers to China Securities Regulation Commission

SSE Refers to Shenzhen Stock Exchange

Article of Association of Shenzhen Cereals

Article of Association Refers to

Holdings Co. Ltd.RMB/10 thousand Yuan Refers to CNY/ten thousand Yuan

5深圳市深粮控股股份有限公司2022年半年度报告全文

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深圳市深粮控股股份有限公司

Company

Abbr. of Chinese name of the深粮控股

Company (if applicable)

English name of the

SHENZHEN CEREALS HOLDINGS CO.LTD

Company(if applicable)

Legal Representative Hu Xianghai

II. Person/Way to contact

Secretary of the Board Rep. of security affairs

Name Chen Xiaohua Chen Kaiyue Liu Muya

13/F Tower A World Trade Plaza No.9 Fuhong 13/F Tower A World Trade Plaza No.9 Fuhong

Contact add.Rd. Futian District Shenzhen Rd. Futian District Shenzhen

Tel. 0755-83778690 0755-83778690

Fax. 0755-83778311 0755-83778311

E-mail chenxh@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 2021.

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 2021.

6深圳市深粮控股股份有限公司2022年半年度报告全文

3.Other relevant information

Whether other relevant information has changed in the reporting period

□ Applicable √ Not applicable

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) 4338044528.35 5262189180.53 -17.56%

Net profit attributable to

shareholders of the listed 237527782.93 243846874.76 -2.59%

Company (RMB)

Net profit attributable to

shareholders of the listed

Company after deducting 227132288.75 237039666.31 -4.18%

non-recurring gains and

losses (RMB)

Net cash flow arising from

260373502.86-691272151.33137.67%

operating activities(RMB)

Basic earnings per share

0.20610.2116-2.60%

(RMB/Share)

Diluted earnings per

0.20610.2116-2.60%

share(RMB/Share)

Weighted average ROE 5.00% 5.17% -0.17%

Changes over end of last year

End of current Period End of last year

(+-)

Total assets (RMB) 7632695093.68 7669618906.32 -0.48%

Net assets attributable to

shareholder of listed 4579686071.77 4630292102.34 -1.09%

Company (RMB)

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

Unit: CNY/RMB

Net profit attributable to shareholders of the listed Net assets attributable to shareholders of listed

Company Company

7深圳市深粮控股股份有限公司2022年半年度报告全文

Current period Last period Period-end Period-begin

Chinese GAAP 237527782.93 243846874.76 4579686071.77 4630292102.34

Items and amount adjusted by IAS

Adjustment for other

payable fund of stock 1067000.00 1067000.00

market regulation

IAS 237527782.93 243846874.76 4580753071.77 4631359102.34

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

Unit: CNY/RMB

Item Amount Note

Governmental subsidy reckoned into current gains/losses (except for those with

normal operation business concerned and conform to the national policies &

8046293.93

regulations and are continuously enjoyed at a fixed or quantitative basis

according to certain standards)

Profit and loss of assets delegation on others’ investment or management 221889.46

Except for the effective hedging operations related to normal business operation

of the Company the gains/losses of fair value changes from holding the trading

financial assets and trading financial liabilities and the investment earnings 3573445.74

obtained from disposing the trading financial asset trading financial liability and

financial assets available for sale

Switch-back of provision of impairment of account receivable which are treated

127286.00

with separate depreciation test

Other non-operating income and expenditure except for the aforementioned

1065883.45

items

Less: impact on income tax 2637117.23

Impact on minority shareholders’ equity (after-tax) 2187.17

Total 10395494.18

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

□ Applicable √ Not applicable

8深圳市深粮控股股份有限公司2022年半年度报告全文

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

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

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

profit(gain)/loss

□Applicable √Not applicable

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

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

recurring profit(gain)/loss

9深圳市深粮控股股份有限公司2022年半年度报告全文

Section III Management Discussion and Analysis

I. Main businesses of the Company in the reporting period

Main business of the Company includes the wholesale and retail business food processing and manufacturing

business leasing and commerce service business.The wholesale and retail business are mainly rice wheat rice in the husk corn sorghum cooking oil and other

varieties of grain and oil as well as the sales of fine tea beverage and condiment. Mainly supplied wheat rice

corn barley sorghum and other raw grain to customers such as the industry's large traders feed processing and

flour processing enterprises and so on; mainly sold rice flour cooking oil high-quality tea beverages and other

products to demand units and community residents. During the reporting period the international environment

became more complex and severe the conflict between Russia and Ukraine deepened and evolved domestic

pandemics had frequent outbreaks unexpected factors exceeded expectations the adverse impact was

significantly increased and the economic development was extremely unusual. The company continued to fight a

protracted battle for pandemic prevention and control took multiple measures to ensure the supply of goods

stabilize the supply improve the products strengthen the brand deepen the market and be a "stabilizer" for the

food security of the special zone.Food processing and manufacturing business are mainly the processing the technology research in aspect of flour

rice cooking oil tea and natural plant extracts beverage condiments prepared foods functional foods and so

forth. 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” special flour for

noodles and dumpling skin; “Tianlvxiang” flour for civilian use and the rest; Rice products include “ShenliangDoximi” “Guzhixiang” “Gufengxianman” “Runxiangliangpin” “Panong Blue” “Taitai Fukou”

“Duobaogufang” “Taihexiang” and others; Cooking oil products include brands such as “Shenliang Fuxi”

“Shenliang Jinxi” “Youtian” and others; Tea brands mainly include "Jufangyong" tea; "Yichong" fresh extract

"Jindiao" instant tea powder and other tea deep-processed products as well as "Shenbao" chrysanthemum and

lemon tea the "Cha Mi Xiang Qi" series of tea beverages as fresh fruit tea with grains and light food; lunch of

"Utopia Autumn" tea and wine continues to enrich the product mix; Condiments are mainly "Sanjing" oyster

sauce and sauces and the prepared food brand "Wotian"; the functional red yeast food"Shankangyuan"; Multiple

brands shapes a product series including "Shenliang Yushuiqing" rice noodles oil and miscellaneous cereals

series "Jiaxi" rice and noodle series "Jinchangman" noodle and oil series "Black-faced Spoonbill" tea rice oil

drinking water side dishes and spices series.The leasing and business service refers to providing the professional import & export trade warehousing &

10深圳市深粮控股股份有限公司2022年半年度报告全文

storage logistic & distribution quality inspection & information technology services property leasing and

management business operation management services for all kinds of clients in the upstream and downstream of

the industrial chain by using the advantage of brand reputation operation service capacity and facility technology

that accumulated in field of grain and oil market. Its Dongguan smart gain logistics complex is a comprehensive

grain distribution service body integrating five major functions: grain & oil terminal transit reserve testing &

distribution processing & production and market trading; subsidiary Shenliang Quality Inspection was awarded as

“Guangdong Shenzhen National Grain Quality Monitoring Station” and Shenliang Cold Chain provides cold

chain of food storage and distribution services to the customers subsidiary Zhenping Company create a smart

supply chain management services platform for promoting the quality enhancement of "vegetable baskets" for

common people. Subsidiary Shenliang Property is a professional assets management platform enterprise.II. Core Competitiveness Analysis

The company enhances the endogenous power by deepening reform strengthens the "extensive" development by

innovation cooperation and continuously upgrades and transforms the governance pattern development quality

and guarantee ability and has embarked on a path of sustainable and high-quality development through self-

innovation and become a highly competitive innovative and influential "ten billion" backbone grain enterprise in

the domestic grain industry.

(1) Strategic guidance

The company's core management team has rich experience strong strategic vision and pragmatic spirit. The

company focuses on the main business vigorously promotes business model innovation and transformation and

actively promotes the transformation from a "trade-oriented enterprise" to a "service-oriented enterprise" and from

the "operation-oriented management and control" to the "strategic management and control" and has successively

put forward the strategic goals and the specific implementation paths of building "the most competitive grain

circulation service enterprise in the region" "excellent service provider of grain supply chain" and "excellent

service provider in the supply chain of intelligent cereals oil and foodstuff ". The company strengthens the grain

strategic service capability integrates its strategy into the national strategy focuses on the functional positioning

of "strengthening and optimizing the main business of grain and serving the people's livelihood" actively deploys

the supply chain and continues to independently invest in "high-quality grain source base + channel logisticsnodes + regional intelligent comprehensive park + urban intelligent distribution center” and further promotes a

number of high-quality grain oil and food projects and people's livelihood happiness projects such as NortheastGrain Source Base Dongguan Grain Logistics Node Intelligent Group Meals Affordable Granary “Benefitingthe People” Project and “Tea &Rice Mutual Expectancy” Mini-type Synthesis and effectively undertakes the

important tasks of "ballast stone" "reservoir" and "regulator" for food security in the "dual-zone construction".

(2) Management and operation

11深圳市深粮控股股份有限公司2022年半年度报告全文

The company actively builds a supply chain safe storage and transportation system to ensure regional food

security; and actively builds a supply chain storage and transportation system to establish the operation strategy of

"establishing food security firmly on supply chain security". According to the combination of dynamic and static

constant storage and constant new and business orientation the company improves the resource allocation of the

intelligent cereals oil and food supply chain and strengthens the professional capabilities of "purchasing

transactions logistics allocation warehousing rotation and emergency response". In terms of business layout the

company deeply cultivates subdivides target markets carries out differentiated and professional operations and

uses "Internet +" as a means to innovate and develop supply channels and transaction methods for grain and oil

products builds and improves the "three-in-one" multi-level product supply network of terminal grain and oil e-

commerce catering delivery services and bulk grain and oil trading services. In terms of business management

and control the seamless link between "business" and "planning funds quality inspection inventory risk control

and discipline inspection" has been realized by the self-owned information management system and a rigorous

"six-in-one" management and control system to effectively has been built to reduce operating risks while fully

participating in market competition and effectively realized the "consistency of political responsibility and

economic responsibility and the unity of social benefits and economic benefits".

(3) R & D technology

The company attaches great importance to transforming and upgrading traditional industries with modern

technological means. It actively introduces new-generation information technologies such as the Internet of

Things cloud computing big data and mobile Internet into grain management forming an information system

that can cover the entire industrial chain of the grain industry so as to realize refined control of key links of grain

procurement warehousing logistics processing trading distribution etc. and to promote the development of the

"Internet + food" industry. The company's informatization construction capability is at the leading level in the

domestic grain industry. It is the first in the industry to build a "standardized mechanized informationized and

harmless" system for warehouse management. The self-developed "grain logistics information system (Shenliang

GLS)" has built a framework for the construction of grain informatization work innovated the grain management

model and led the development direction of the grain industry. The project was awarded the "National Internet of

Things Major Application Demonstration Project" by the National Development and Reform Commission and the

Ministry of Finance and Experience of "Shenliang GLS" Enabling Total Quality Management Mode won the

2020 National Quality Benchmark. The company has strong research and development capabilities in the field of

food and beverages and has gathered leading technological advantages and equipment systems. Its subsidiaries

Shenbao Huacheng Wuyuan Jufangyong and Wuhan Jiacheng are all national high-tech enterprises. The

company has undertaken a number of national research projects presided over or participated in the preparation of

a number of national standards and industry standards and many informatization project achievements and

scientific and technological achievements have won national provincial and municipal awards.

(4) Quality control

12深圳市深粮控股股份有限公司2022年半年度报告全文

The company gives full play to the advantages of products channels brands warehousing quality inspection etc.controls product quality and safety and provides high-quality and safe products for the society. Its subsidiary

Shenbao Huacheng has established a quality control system recognized by large international food and beverage

companies. Its subsidiary Shenliang Quality Inspection has the leading grain and oil quality inspection

technology and equipment in the domestic grain industry it has been incorporated into the national grain quality

supervision and inspection system and was awarded the "Guangdong Shenzhen National Grain Quality

Monitoring Station" by the State Grain Administration and obtained the Assessment Certificate (CATL) of the

Quality and Safety Testing Agency of Agricultural Products and the Certificate of Qualification (CMA) of the

Inspection and Testing Agency etc. possessing with a number of certified testing capabilities. Shenliang Quality

Inspection includes pesticide residues heavy metal pollutants mycotoxins and other health indicators and food

taste indicators in the daily inspection indicators and has the ability to test four types of indicators such as grain

conventional quality storage quality grain safety and edible quality which can meet the relevant quality

inspection needs of grain and oil products and can accurately analyze the nutrient content and health indicators of

grains and determine its storage quality and edible quality. It has built a "digital laboratory" in the grain industry

to monitor the entire process of sampling testing and distribution in real time and cooperates with collaborative

platforms to save retrieve integrate analyze and share grain and oil testing data to achieve 100% inspection

coverage of grain and oil products.

(5) Incentive mechanism

The company focuses on the strategy of "strengthening the enterprise with talents" innovatively implements EVA

assessment and stimulates the internal driving force of enterprise development. It continues to innovate the talent

training mechanism and build a high-quality talent supply chain and has established an open talent echelon that

meets the needs of the long-term development of the enterprise so as to reserve intelligence for the upgrading and

development of the enterprise; it establishes result-oriented incentives and constraints appraisal system through

the innovative implementation of the EVA performance appraisal mechanism advocates employees to create

value for shareholders advocates the company to share value with employees fully reflects the principle of

prioritizing the interests of shareholders favorably promotes the rational allocation of corporate resources and

effectively establishes a performance culture and stimulates the vitality of the company. The company is the first

pilot enterprise in the state-owned assets system to implement the full coverage of the EVA assessment so as to

explore the replicable experience of establishing a share and incentive mechanism that is compatible with the

labor market and linked to the economic benefits of the enterprise. The company insists on cultivating and

advocating a corporate culture with the core values of "people oriented performance first quality first and

harmony first" and combines the personal development goals of employees with the corporate vision to enhance

the cohesiveness of the company.III. Main business analysis

2022 is the key period of the "14th Five-Year Plan". The company adheres to the general principle of seeking

13深圳市深粮控股股份有限公司2022年半年度报告全文

progress while maintaining stability actively serves and integrates into the new development pattern of grain

security strengthens the coordinated guarantee of the whole chain of production purchase storage processing

and sales and insists on laying equal stress on quantity and quality and thoroughly implements high-quality grain

projects to strengthen optimize and expand the industrial chain. During the reporting period Dongguan Logistics

Industrial Park project of the company was put into use the company's transit business volume increased steadily

the rise in prices of high value-added services and bulk trade and the increase in the gross profit margin of grain

and oil trade led to an increase in the company's overall efficiency. As of June 30 2022 the company's total assets

were 7.633 billion yuan of which the net assets attributable to shareholders of the listed company were 4.58

billion yuan; the cumulative operating revenue was 4.338 billion yuan achieving total profit of 241 million yuan

the net profit attributable to shareholders of the listed company was 238 million yuan the weighted average return

on equity was 5.00% and the basic earnings per share was 0.2061 yuan per share.During the reporting period the company based on its own advantages and industrial development used

information technology innovated and opened up the grain and oil products supply channels and trading methods

created a new pattern for tea and food business industry built a multi-group and multi-channel food supply chain

and service network expanded the effective supply of medium- and high-end grain oil and food and aims to

meet people's needs of "quality diversity nutrition health green and convenience" and promoted the

transformation of grain and oil products from "eat full" to "eat well". The company continues to focus on grain

circulation services and completes grain and oil supply services with quality and quantity by actively building

supply chains continuously extending the industrial chains innovating business models and upgrading the

industrial value chains the development of the main grain and oil business continues to improve.

(1) Focus on reform and innovation and consolidate the support of modern governance capabilities

The company has completed the three-year action tasks of state-owned enterprise reform the key tasks and

measures of the "Double Hundred Action" and the key task of benchmarking the world-class management

improvement action and provided the national food and agriculture industry and the state-owned assets and

state-owned enterprises with a replicable and popularized "Shenliang Model". The company has carried out a

number of informatization construction projects to accelerate the digital transformation of the company's entire

chain. It has strictly performed information disclosure obligations and continued to receive the highest rating of

"A" in the Shenzhen Stock Exchange's 2021 annual information disclosure assessment for companies listed on the

main board. It continues to strengthen organizational management and form a modern governance system with

complete system scientific standardization and efficient operation.

(2) Focus on key projects and make breakthroughs to drive all-round development

The company's Northeast Grain Source Base has further strengthened the "production purchase storage

processing and sales" chain of cereal and oil food and Hongxinglong warehouse has adjusted the varieties of

unprocessed grain reserves; the rice production line has been officially put into production; new methods such as

14深圳市深粮控股股份有限公司2022年半年度报告全文

containerized railway-sea or truck-sea combined transportation are adopted to reduce cereal loss reduce

transportation time and open up the channel of "north grain transported to the south".The company's Dongguan grain logistics node construction and operation goes well the Shenliang Logistics

Building is officially opened the A1 flat warehouse project has completed the construction of the main body and

the supporting projects and is about to be put into production and the A2 and A3 plots have obtained the

construction project planning permit and accelerated the construction. It successfully obtained the port operating

permit for berths No. 1 and No.2 and has started the construction of berth No.3; the port handling capacity

reached a new high in the first half of the year.

(3) Focus on brand building enable operations to improve quality and efficiency

The company firmly promotes brand development continuously improves the excellent brand matrix

continuously improves the quality and scale of food supply strengthens the core competitiveness innovation and

output capabilities of the brand serves the common people with more high-quality grain and oil products with

preferential prices and sets an example in cereals oils and foodstuff to create a benchmark for people's livelihood

and happiness. A total of 12 products from three subsidiaries of the company i.e. Shenzhen Flour Shenliang Food

and Shenliang Oils and Fats were selected into the ninth batch of "Shenzhen Products"; Shenbao Huacheng a

subsidiary of the company was awarded the 12th "Shenzhen Time-honored Brand".

(4) Focus on regional grain security strengthen and standardize grain and oil management

The company is determined to be a "stabilizer" for grain security in Shenzhen Special Economic Zone regularly

inspects and verifies the quantity and quality of grain and oil in stock at each warehouse and provides reserve

services with high quality and quantity; builds a green and smart grain depot and follows the full-process

inspection of warehousing inventory and ex-warehouse. During the pandemic in Shenzhen the company's grain

depots implemented closed management and the "three-in-one" logistics model automated warehouses digital

laboratories and other emergency supply guarantees were operated in real time which built the "first line of

defense" for emergency guarantee of grain supply.

(5) Focus on risk prevention and control and firmly guard the bottom line and red line of safety

The company has firmly built a five-in-one "big risk control" management mechanism of "internal control

evaluation + safety production + audit + legal affairs + quality safety" and promoted full coverage of independent

evaluation and risk assessment of subsidiaries; strengthened the cost control of the whole process of engineering

projects; improved capital management system built a unified supervision platform for funds and improved the

long-term supervision mechanism for fund security check.Y-o-y changes of main financial data

Unit: CNY/RMB

Same period of last Y-o-y

Current period Reasons for changes

year increase/decr

15深圳市深粮控股股份有限公司2022年半年度报告全文

ease

The grain and oil trading sales

declined due to the impact of

Operating revenue 4338044528.35 5262189180.53 -17.56%

epidemic on supplying chain

business of the Company

The grain and oil trading sales

declined due to the impact of

Operating cost 3775825625.81 4650397070.67 -18.81%

epidemic on supplying chain

business of the Company

Stock of grain & oil and trading of

grain & oil in the period decreased

compared with the same period of

Sales expenses 79331081.69 106711776.77 -25.66%

the previous year the sales expenses

from warehousing and port terminal

declined

Total profit after reducing rent by

the same caliber increased compared

Management with the same period of the previous

125631541.74109316093.6514.93%

expenses year according to the operation the

Company prepays the annual

performance and the payroll match

The berths 1 and 2 and CDE

warehouse were put into operation

Financial expenses 28009628.45 17204774.52 62.80% last year the expense-based interest

costs increased compared with the

same period of last year

Income tax expense 2958666.41 13407354.56 -77.93%

R&D investment 10137177.77 10926018.15 -7.22%

The reserve gain& oil settlement

payment in 2021 and advance

Net cash flow appropriation in the first half of

arising from 260373502.86 -691272151.33 137.67% 2022 are collected in the first half of

operating activities 2022 while the same period of

previous year was the second half of

2021

In the same period of last year the

Net cash flow

consideration paid for acquisition of

arising from

-25369682.63 -267111859.35 90.50% minority interest from Dongguan

investment

Logistics of 322 million yuan and

activities

no similar occurred in current period

In the same period of last year there

Net cash flow

were more loans from operation

arising from -212953478.35 836677347.40 -125.45%

flow and in current period some

financing activities

long-term loans are paid due to the

16深圳市深粮控股股份有限公司2022年半年度报告全文

sufficient monetary funds

Net increase of cash

22090601.62-121720142.83118.15%

and cash equivalent

Major changes on profit composition or profit resources in reporting period

No major changes on profit composition or profit resources occurred in reporting period

Constitute of operating revenue

Unit: CNY/RMB

Current period Same period last year

Increase/decrea

Ratio in operation Ratio in operation

Amount Amount se y-o-y (+-)

income income

Total operating

4338044528.35100%5262189180.53100%-17.56%

revenue

According to industries

Wholesale and

3409189664.6678.59%4400038220.5683.62%-22.52%

retail

Leasing and

commercial 470365451.05 10.84% 476311036.38 9.05% -1.25%

services

Manufacturing 458489412.64 10.57% 385839923.59 7.33% 18.83%

According to products

Grain and oil

trading and 3754406530.76 86.55% 4675804942.84 88.86% -19.71%

processing

Grain and oil

storage logistics 439642478.40 10.13% 422355721.28 8.03% 4.09%

and services

Food & beverage

113272546.542.61%111339446.112.11%1.74%

and tea processing

Leasing and others 30722972.65 0.71% 52689070.30 1.00% -41.69%

According to region

Domestic market 4313917094.98 99.44% 5245073883.18 99.67% -17.75%

Exportation 24127433.37 0.56% 17115297.35 0.33% 40.97%

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

√ Applicable □Not applicable

Unit: CNY/RMB

Increase/decre Increase/decre Increase/decr

Gross

ase of ase of ease of gross

Operating revenue Operating cost profit

operating operating cost profit ratio y-

ratio

revenue y-o-y y-o-y o-y

17深圳市深粮控股股份有限公司2022年半年度报告全文

According to industries

Wholesale and

3409189664.663182456673.116.65%-22.52%-23.00%0.58%

retail

According to products

Grain and oil

trading and 3754406530.76 3505941830.21 6.62% -19.71% -20.54% 0.98%

processing

According to region

Domestic market 4313917094.98 3759320612.43 12.86% -17.75% -18.94% 1.28%

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

latest one year’s scope of period-end

□ Applicable √Not applicable

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

□ Applicable √Not applicable

IV. Analysis of the non-main business

√ Applicable □ Not applicable

Unit: CNY/RMB

Whether be

Amount Ratio in total profit Causes

sustainable

Unsustainab

Investment income 3038365.75 1.26%

Gains/losses of fair Unsustainab

221889.460.09%

value variation le

Accrual of the reserve for falling

prices of goods in stock. When

selling the goods with falling prices Unsustainab

Asset impairment -81499450.86 -33.79%

accrual the actual carrying forward le

of the reserves will be used to offset

the current cost

Unsustainab

Non-operating income 1133017.31 0.47%

Unsustainab

Non-operating expense 67133.97 0.03%

V. Assets and liability analysis

1. Major changes of assets composition

Unit: CNY/RMB

18深圳市深粮控股股份有限公司2022年半年度报告全文

End of current period End of last year

Ratio in Ratio Notes of major

Ratio in

Amount total Amount changes(+-) changes

total assets

assets

Monetary fund 72460681.82 0.95% 50409923.65 0.66% 0.29%

Settlement of

grain & oil

Account service income at

174146597.772.28%283047341.623.69%-1.41%

receivable end of previous

year are received

in current period

Increase in grain

& oil stock

Inventory 3619041269.92 47.41% 3460618674.81 45.12% 2.29% compared to the

beginning of the

period

Investment real

225116917.612.95%233096698.493.04%-0.09%

estate

Long-term

equity 72955363.50 0.96% 73490443.49 0.96% 0.00%

investment

Fix assets 2122654384.98 27.81% 2127831149.19 27.74% 0.07%

Construction in

198788393.172.60%207946539.972.71%-0.11%

process

Right-of-use

87899195.171.15%97648674.061.27%-0.12%

assets

Increase in

Short-term operating flow

725635087.739.51%504766782.256.58%2.93%

loans loans during the

period

Contract liability

decline due to the

carrying forward

Contract of recognized

83531467.121.09%182972314.852.39%-1.30%

liability revenue upon

completion of

performance

obligations

Long-term Repayment of

624310269.818.18%730521692.229.52%-1.34%

loans long-term loans

Lease liability 79340597.07 1.04% 80173743.75 1.05% -0.01%

19深圳市深粮控股股份有限公司2022年半年度报告全文

2. Main overseas assets

□Applicable √Not applicable

3. Assets and liability measured by fair value

√ Applicable □ Not applicable

Unit: CNY/RMB

Accumulati

Changes of Devaluatio

ve changes

fair value n of Amount of Amount of

Opening of fair Other Ending

Items gains/losse withdrawin purchase in sale in the

amount value changes amount

s in this g in the the period period

reckoned

period period

into equity

Financial

assets

1.Trading

financial

assets

211060771389342772348385.

(excluding 221889.46

0.504.9501

derivative

financial

assets)

Other non-

current 80000000. 80057500.

57500.00

financial 00 00

assets

Aforementi 21111827 80000000. 13893427 15240588

221889.46

oned total 0.50 00 4.95 5.01

Financial

0.000.00

liabilities

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

4. The assets rights restricted till end of the period

Item Ending book value Reasons for restriction

Monetary fund 1000000.00 Guarantee deposit

According to the long-term loan mortgage contract signed by Dongguan

Fix assets 354690060.54

Logistics a subsidiary of the Company with Shenzhen Branch of Agricultural

20深圳市深粮控股股份有限公司2022年半年度报告全文

Item Ending book value Reasons for restriction

Development Bank and Huizhou Zhongkai Sub-branch of HSBC Dongguan

Logistics has subordinate mortgaged the real estate property rights of the

structures of Yue (2020) Dongguan Property Right No. 0127118 Yue (2020)

Dongguan Property Right No. 0127119 Yue (2020) Dongguan Property Right

No. 0127120 and Yue (2020) Dongguan Property Right No.0119705 at No. 10

Jingang South Road Machong Town Dongguan City and other aground

buildings as collateral for the loan.According to the long-term loan mortgage contract signed by Dongguan

Logistics a subsidiary of the Company with Shenzhen Branch of Agricultural

Development Bank and Huizhou Zhongkai Sub-branch of HSBC Dongguan

Logistics has subordinate mortgaged the real estate property rights of the

Intangible assets 34607208.17 structures of Yue (2020) Dongguan Property Right No. 0127118 Yue (2020)

Dongguan Property Right No. 0127119 Yue (2020) Dongguan Property Right

No. 0127120 and Yue (2020) Dongguan Property Right No.0119705 at No. 10

Jingang South Road Machong Town Dongguan City and other aground

buildings as collateral for the loan.According to the loan contract Yue DG2017 NGDZ No. 006 signed by

International Food a subsidiary of the Company with Bank of Communications

Co. Ltd. Dongguan Branch International Food has mortgaged its two pieces of

Intangible assets 32555832.71

land "DFGY (2009) DT No. 190" and "Yue (2020) Dongguan Real Estate Right

No. 0321771" to the Bank of Communications Co. Ltd. Dongguan Branch as

loan collateral.Total 422853101.42

VI. Investment analysis

1. Overall situation

√ Applicable □ Not applicable

Investment in the same period of last

Investment in reporting period (RMB) Changes (+-)

year (RMB)

33983734.95423203922.73-92.68%

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

Unit: CNY/RMB

Invest Wheth Industr Amou Accum Capital Progre Expect Incom Reaso Date Disclo

Item

ment er it is y with nt ulated source ss ed e ns for of sure

21深圳市深粮控股股份有限公司2022年半年度报告全文

metho the the input actual s earnin accum failure disclos index

d fixed invest in the input gs ulated to ure (if (if

assets ment period as of at end achiev any) any)

invest involv the end of the e

ment ed of reporti planne

(Y/N) reporti ng d

ng period progre

period ss and

expect

benefit

Logisti

c node

project

(phase

II) of

Storag 1469

Dongg Self- 17458 Owned 88.00

Y e and 01801 - - - - -

uan build wharf 885 Funds % 2

Shenli

ang

Logisti

cs Co.Ltd.

1469

17458

Total -- -- -- 01801 -- -- - - -- -- --

885

4. Financial assets investment

(1) Securities investment

√ Applicable □ Not applicable

Unit: CNY/RMB

Chang

es in

Book Cumu Profit

Accou fair Curre Book

Short value lative Curre and

Variet Code Initial nting value nt value Accou Capita

form at the fair nt loss in

y of of invest measu of the purch at the nting l

of begin value sales the

securi securi ment remen curren ase end of subjec Sourc

securi ning chang amou Repor

ties ties cost t t amou the t e

ties of the es in nt ting

model profit nt period

period equity Period

and

loss

Dome

Fair Tradi

stic Debt

value 1142 ng

and 00001 Zhong 9210 2218 2218 resche

0.00 measu 988.7 financ

overse 7 hua-A 99.27 89.46 89.46 duled

remen 3 ial

as shares

ts assets

stock

1142

921022182218

Total 0.00 -- 0.00 0.00 0.00 988.7 -- --

99.2789.4689.46

22深圳市深粮控股股份有限公司2022年半年度报告全文

(2) Derivative investment

□ Applicable√Not applicable

The Company has no derivatives investment in the Period

5. Application of raised proceeds

□ Applicable√Not applicable

The Company has no application of raised proceeds in the Period

VII. Sales of major assets and equity

1. Sales of major assets

□ Applicable √Not applicable

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

2. Sales of major equity

□ Applicable √ Not applicable

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

√ Applicable□Not applicable

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

Unit: CNY/RMB

Company Main Register Operating Operating

Type Total assets Net assets Net profit

name business capital revenue profit

Grain & oil

Shenzhen trading

Cereals processing 15300000 77240605 41765871 41354335 19194030 19006785

Subsidiary

Group Co. Grain and 00.00 88.89 34.71 96.58 9.99 3.96

Ltd oil reserve

service

Shenzhen

Hualian

Grain & oil 10000000 13281015 23649146 71663254 76222688. 67907072.Grain and Subsidiary

trading 0.00 71.73 3.20 0.79 50 76

Oil Trading

Co. Ltd.Grain & oil

trading

Shenzhen

processing 30000000. 10478534 12503761 13113304 42274613. 43240341.Flour Co. Subsidiary

Grain and 00 54.19 3.88 91.16 24 15

Ltd

oil reserve

service

Particular about subsidiaries obtained or disposed in report period

√ Applicable □ Not applicable

23深圳市深粮控股股份有限公司2022年半年度报告全文

The way of getting and treating

Company name Influence on overall product and performance

subsidiary in the reporting

Shenzhen Shenbao Technology No material impact on overall production operation

Mergers and Acquisitions

Center Co. Ltd. and results of the Company for the year

Zhenping Market Operation Tech. No material impact for now on overall production

Newly established

Co. Ltd. operation and results of the Company for the year

Shenliang Hongli Grain & Oil No material impact for now on overall production

Newly established

(Shenzhen) Co. Ltd. operation and results of the Company for the year

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 7724060588.89 Yuan and net assets amounting to 4176587134.71 Yuan shareholders’ equity attributable to parent

Company is 3976719908.68 Yuan; in the reporting period achieved operation revenue net profit and net profit attributable to

shareholder of parent Company as 4135433596.58 Yuan 190067853.96 Yuan and 181114135.34 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: purchase and sale of grain and oil online sales of grain and oil;

information service business (internet information service business only). Register capital was 100000000.00 Yuan. Ended as this

period total assets amounted as 1328101571.73 Yuan and net assets amounting to 236491463.2 Yuan shareholders’ equity

attributable to parent Company is 208500133.85 Yuan;in the reporting period achieved operation revenue net profit and net profit

attributable to parent Company as 716632540.79 Yuan 67907072.76 Yuan and 67612430.08 Yuan respectively.Shenzhen Flour Co. Ltd: business scope: 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; flour processing and production. Register capital was 30000000.00 Yuan.Ended as this period total assets amounted as 1047853454.19 Yuan and net assets amounting to 125037613.88 Yuan

shareholders’ equity attributable to parent Company is 125037613.88 Yuan; in the reporting period achieved operation revenue net

profit and net profit attributable to parent Company as 1311330491.16 Yuan 43240341.15 Yuan and 43240341.15 Yuan

respectively.

24深圳市深粮控股股份有限公司2022年半年度报告全文

IX. Structured vehicle controlled by the Company

□ Applicable √Not applicable

X. Risks and countermeasures

1. The risk of the impact of the COVID-19 pandemic

The continued COVID-19 pandemic greatly affected the macroeconomic operation and the uncertain risks faced

by economic development have intensified. The company has been greatly and negatively affected in terms of

production trade and industrial supply chain resulting in rises in material costs labor costs logistics costs and

other costs a certain extent.In response to this risk the company strictly implements the pandemic prevention policies and does a good job in

pandemic prevention tirelessly. On the one hand the company builds a normalized mechanism for pandemic

prevention and control and implements prevention and control measures from three aspects of "people objects

and environment"; on the other hand the company makes reasonable arrangements for production and business

through advance planning to ensure that the company's production and operation are carried out in an orderly

manner. In addition the company further promotes refined management to reduce costs and increase efficiency.

2. Raw material price fluctuation risk

Firstly the monetary tightening policies to combat the inflation due to the over-issuance and depreciation of US

dollar and the decline in social production levels caused by the COVID-19 pandemic have led to sharp

fluctuations in prices of domestic and foreign commodities; secondly as the COVID-19 pandemic continues

some countries have controlled the export of agricultural products and the restrictions on the circulation of

agricultural products caused the prices of agricultural products to rise; finally the Russian-Ukrainian conflict have

blocked the grain exports of two important grain-producing countries causing the global grain and oil prices to

continue to rise. The above risks have greatly impacted the industry in which the company operates and the

company's external raw material procurement costs continue to be under pressure.The company will actively respond to the adverse effects of raw material price fluctuations on the company's

operations through measures such as strengthening market forecasts establishing strategic cooperation

optimizing supply management and refining the management of the entire industry chain.

3. Food safety risks

As a major livelihood issue food safety concerns the vital interests and safety and health of the people. Under the

current situation of the sporadic and repeated COVID-19 pandemic as emergency supplies the distribution and

transportation of grain may be affected by the transportation control and the requirements of local pandemic

prevention policies. In order to ensure the supply and quality of emergency supplies the company has made

careful deployment and joint coordination of various units to strengthen the pandemic prevention and control of

key objects such as people vehicles and the environment accompanying the goods which not only ensures the

25深圳市深粮控股股份有限公司2022年半年度报告全文

quality compliance and hygienic safety of the food to be put in storage but also effectively guarantees sufficient

grain and oil reserves stable market supply and good food quality.To address this risk the company implements the following specific measures. First strictly implement the main

responsibility for food quality and safety. The company implements the special post for special responsibility

implements the requirements of "one batch one inspection" for grain oil and food and strengthens the source

control. Second strengthen public opinion detection of food safety. The company strengthens the monitoring and

tracking of food safety public opinion trends stabilizes the consumer market sentiment of grain and oil and does

a good job in the management of grain quality and safety. Third continuously improve the level of product quality

assurance through technological transformation and technological progress. Fourth strengthen product

transportation and storage management to prevent secondary pollution of products.

4. The risk of market competition

As a representative enterprise of regional grain oil and food business there is still a certain gap in scale and brand

awareness between the company and other central enterprises and large multinational grain oil and food

enterprises. In the future the competition in the grain oil and food industry will become more and more fierce if

the company cannot effectively promote the own brands and expand marketing channels it may face greater

market competition risks.In order to cope with this risk on the one hand the company continues to improve the plan management level

formulates the purchase and sales plan during the year and carefully optimizes the procurement channels to

ensure sufficient grain supply and orderly supply; on the other hand it continues to strengthen communication

with upstream and downstream customers in the industry chain vigorously expands sales channels focuses on

customer needs develops brands and services and enhances the company's brand value and competitiveness. At

the same time the company actively develops new customers and effectively expands markets outside the region

and emerging markets.

5. Merger and acquisition integration risk

The company carries out investment and M&A projects according to its development strategy. Whether the M&A

project can form a synergistic effect with the original business and whether it can be effectively integrated with

the original corporate culture and management methods will affect the realization of the enterprise strategic goals

and the lack of adequate management and control may lead to M&A-related risks.In response to this risk the company will take the following measures. The first is to pay attention to the

integrating degree of the operation of the acquired company with the company's development strategy and make

corrections in a timely manner; the second is to pay attention to the synergy between the acquired company and

the company's existing industries and coordinate the deployment of resources in a timely manner; the third is to

gradually promote and realize the integration of systems and cultures; the fourth is to optimize the performance-

26深圳市深粮控股股份有限公司2022年半年度报告全文

based innovation incentive and assessment mechanism and constantly adjust the incentive policies of the acquired

companies to adapt to the business objective.

27深圳市深粮控股股份有限公司2022年半年度报告全文

Section IV Corporate Governance

I. Annual General Meeting and extraordinary shareholders general meeting held in this

period

1. AGM in the period

Investor

Sessions Type participatio Opening date Disclosure date Resolutions

n (%)

Resolution Notice of

AGM 2021 of Shenzhen

Cereals Holdings Co.

2021 Annual Ltd. (Notice No.: 2022-

AGM 72.09% 2022-05-18 2022-05-19

general meeting 15) released on Juchao

website

(www.cninfo.com.cn)

dated 19 May 2022

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

□ Applicable √ Not applicable

II. Changes of directors supervisors and senior executives

√ Applicable □ Not applicable

Name Position Type Date Causes

Wang Li Director Outgoing 2022-01-12 Retirement

Zhu Junming President Outgoing 2022-06-05 Passed away

III. 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

IV. 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.

28深圳市深粮控股股份有限公司2022年半年度报告全文

Section V Environmental and Social Responsibility

I. Major environmental protection

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

□Yes √No

Administrative penalties imposed for environmental issues during the reporting period

Impact on the

Company/Subsidia Reasons for production & Corrective

Violation situation Penalty results

ry penalty operation of the measures

listed company

------

Other environmental information disclosed with reference to the key emission units

N/A

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

□ Applicable √Not applicable

Reasons for not disclosing other environmental information

The company attached great importance to environmental protection work and each subsidiary has built corresponding

environmental protection facilities according to the actual situation of production and operation to treat waste gas dust wastewater

and solid waste generated in the production process so as to make its emissions reach the national and local relevant standards. At

the same time based on its own business characteristics the company’s subsidiaries have formulated a series of rules and regulations

on environmental protection and strictly implemented them to institutionalize and standardize the environmental protection.II. Social responsibility

1. Rural revitalization.

In order to thoroughly implement the guiding spirit of the CPC Central Committee and the State Council on

consolidating and expanding the results of poverty alleviation and the effective connection of rural revitalization

and the decision-making and deployment of the Provincial Party Committee and the Municipal Party Committee

on the implementation opinions on comprehensively promoting rural revitalization according to the unified

arrangement of the Shenzhen Municipal Party Committee in July 2021 SZCH and Government Offices

Administration of Shenzhen Municipality and Meteorological Bureau of Shenzhen Municipality selected and

assigned personnel to formed a support working team stationed in the town (hereinafter referred to as "the

working team") to help carry out rural revitalization and assistance work in Tuocheng Town Longchuan County

Heyuan City the working team gave full play to the advantages of the industry and provided support for the

industrial development of Tuocheng Town.

29深圳市深粮控股股份有限公司2022年半年度报告全文

The first was to implement the important exposition of General Secretary Xi Jinping's rural revitalization work in

practical work. Conducted in-depth research in towns and villages completed the rural revitalization research

report and planning with high quality and relevant results represented Heyuan City to participate in the selection

of Guangdong Province. The second was to implement the monitoring of poverty-returning with heart and

emotion. Implemented the contact mechanism for poverty-returning households established a help book for

special groups and connected with charitable and public welfare resources. The third was to adhere to people first

and life first and assisted in the defense of the super-strong "Dragon Boat Water". Focused on helping Xindu

Village Shengli Village Dajiang Village and Sanyin Village. Among them Comrade Huang Bo joined the militia

emergency team for flood fighting and emergency rescue at the first time and made outstanding contributions

winning the title of "Flood Control and Flood Fighting Model" issued by the People's Armed Forces of Tuocheng

Town.

2. The work of aid to Tibet.

The selected second batch of aid-Tibet cadres thoroughly implemented the spirit of Xi Jinping's important

instructions applied realistic and pragmatic approaches took real action and worked hard and conscientiously

carried out every task of aid to Tibet with a strong sense of responsibility and mission achieved the consolidation

of poverty alleviation results and the effective connection of rural revitalization steadily promoted the high-

quality development of the farms in Zayu County and successfully completed the task of aid to Tibet.

3. Volunteer service.

In the first half of 2022 the pandemic situation in Shenzhen showed a trend of frequent occurrences. In the face of

the severe pandemic Shenliang people acted bravely and acted well actively participated in the anti-pandemic

front line and demonstrated the social responsibility of state-owned enterprises with service consciousness. More

than 110 people of the company participated in the front-line prevention and control of the pandemic and the

volunteer service time exceeded 8000 hours.

30深圳市深粮控股股份有限公司2022年半年度报告全文

Section VI Important Events

I. Commitments completed in Period and those without completed till end of the Period from actual

controller shareholders related parties purchaser and companies

√Applicable □ Not applicable

Type of Imple

Commitment Promise Commitme Commitm

commitme Content of commitments mentat

reason by nt date ent term

nts ion

Commitment on the Lock-up Period of the

Shares: Shenzhen Shenbao Industrial Co.Ltd. (hereinafter referred to as

“Shenshenbao” and “Listed Company”)

intends to purchase the 100% equity of

Shenzhen Cereals Group Co. Ltd.(hereinafter referred to as “SZCG” “targetcompany”) held by the shareholders of SZCG

through issuance of shares. Shenzhen Food

Materials Group Co. Ltd (hereinafter referred

to as “the committed person”) the controlling

shareholder of SZCG has made the following

commitments: 1. The committed person

should not transfer the shares of the listed

company obtained from this transaction

within 36 months from the date of listing of

Commitments Food limited for

the shares. If the closing price of the listed Compl

in assets Materials sale 2018-04-02 2022-5-12

company’s stock is lower than the issue price eted

reorganization Group commitme

for 20 consecutive trading days within 6

months after the completion of this

transaction or the closing price is lower than

the issue price at the term end of 6 months

after the completion of the transaction the

lock-up period for the committed person to

hold the company’s stock automatically

prolongs for at least 6 months. 2. At the

expiration of the above-mentioned lock-up

period if the committed person doesn’t fully

fulfill the performance compensation

obligation stipulated in the Performance

Compensation Agreement the lock-up period

of the shares issued to the committed person

will be prolonged to the date when the

performance compensation obligation is

31深圳市深粮控股股份有限公司2022年半年度报告全文

fulfilled. 3. Before this transaction the shares

of the Listed Company held by the committed

person and the companies controlled by the

promise shall not be transferred within 12

months after the completion of this

transaction. 4. During the lock-up period of

shares the part that the committed person has

increased due to the bonus issue of dividends

transfer of share capital or share allotment of

the Listed Company and other ex dividend

and ex right matters should also abide by the

above-mentioned share lock-up arrangement.

5. If the above lock-up period does not

comply with the latest regulatory

requirements of the securities regulatory

authority the committed person will agree to

make corresponding adjustments according to

the latest regulatory opinions of the

regulatory authorities and implement in

accordance with the relevant provisions of the

China Securities Regulatory Commission and

the Shenzhen Stock Exchange after the lock-

up period expires.Completed on

time (Y/N)

If the

commitment is

overdue and

has not been

fulfilled the

specific reasons

for incomplete Not applicable

performance

and the work

plan for next

step shall be

explained in

detail

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

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.

32深圳市深粮控股股份有限公司2022年半年度报告全文

III. External guarantee out of the regulations

□ Applicable √ Not applicable

No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPA

Whether the financial report has been audited or not

□Yes √No

The financial report has not been audited

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

that issued by CPA

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

Amount Resulted an

Lawsuits involved (in accrual Trial result Execution of Disclosure Disclosure

Progress

(arbitration) 10 thousand liability and influence judgment date index

Yuan) (Y/N)

As of 30 Yes the The After

June 2022 single loan Company comprehensi In promoting Not

11797.26

other contract actively ve analysis actively applicable

lawsuits that dispute from makes use of the outcome

33深圳市深粮控股股份有限公司2022年半年度报告全文

did not meet subordinate the of the cases

the enterprise of advantageous involved in

disclosure the Company resources of the lawsuits

standards for is expected internal legal will not have

significant to form an affairs and a significant

lawsuits accrual external laws impact on the

mainly liability of firm to Company

including: 3.5 million follow up

disputes over yuan and deal with

purchase and approximatel the lawsuit-

sales y. Other related cases.contract lawsuit- At present

disputes over related cases the Company

loans are relatively is responding

contract small in to and

disputes over individual dealing with

construction amount and the cases

contracts will not have effectively in

disputes over a significant accordance

corporate impact on the with relevant

separation Company laws and

contracts and when regulations

housing lease analyzed in

contract conjunction

dispute etc. with the

progress of

these cases.IX. Penalty and rectification

□ Applicable √Not applicable

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

□ Applicable √Not applicable

XI. Major related transaction

1. Related transaction with routine operation concerned

□ Applicable √ Not applicable

No related transaction occurred in the period with routine operation concerned

34深圳市深粮控股股份有限公司2022年半年度报告全文

2. Assets or equity acquisition and sales of assets and equity

□ Applicable √ Not applicable

No related transaction concerning the asses or equity acquisition and sold in the period

3. Related transaction of foreign investment

□ Applicable √Not applicable

No related transaction of foreign investment occurred in the period

4. Related credits and liabilities

□ Applicable √ Not applicable

No related credits and liabilities occurred in period

5. Contact with the related finance companies

□ Applicable √Not applicable

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

related parties

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

□ Applicable √ Not applicable

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

related parties

7. Other major related transaction

□ Applicable √Not applicable

No other major related transaction in the Period.XII. 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

35深圳市深粮控股股份有限公司2022年半年度报告全文

(3) Leasing

□ Applicable √Not applicable

No leasing in reporting period

2. Major Guarantee

√Applicable □ Not applicable

Unit: 10 thousand Yuan

External Guarantee (not including guarantees to subsidiaries)

Name of

Related Complet Guarante

the Actual

Announc Actual Counter e e for

Compan Guarante date of Guarante Collatera Guarante

ement guarante guarante impleme related

y e limit happenin e type l (if any) e term

disclosur e limit e (if any) ntation party

guarante g

e date or not (Y/N)

Guarantee for the subsidiaries

Name of

Related Complet Guarante

the Actual

Announc Actual Counter e e for

Compan Guarante date of Guarante Collatera Guarante

ement guarante guarante impleme related

y e limit happenin e type l (if any) e term

disclosur e limit e (if any) ntation party

guarante g

e date or not (Y/N)

Donggua

Internati

onal

Joint

Food 2018-07-

37632 30632 liability N/A N 14 years N N

Industria 27

guaranty

l Park

Develop

ment

Co. Ltd.Total amount of

Total amount of

actual occurred

approving guarantee

79138 guarantee for 2372

for subsidiaries in

subsidiaries in report

report period (B1)

period (B2)

Total amount of Total balance of

approved guarantee actual guarantee for

for subsidiaries at 116770 subsidiaries at the 30632

the end of reporting end of reporting

period (B3) period (B4)

36深圳市深粮控股股份有限公司2022年半年度报告全文

Guarantee of the subsidiaries for the subsidiaries

Name of

Related Complet Guarante

the Actual

Announc Actual Counter e e for

Compan Guarante date of Guarante Collatera Guarante

ement guarante guarante impleme related

y e limit happenin e type l (if any) e term

disclosur e limit e (if any) ntation party

guarante g

e date or not (Y/N)

Donggua

Joint

Shenlian 2015-07-

27300 9921 liability N/A N 8 years N N

g 13

guaranty

Logistics

Co. Ltd.Donggua

Internati

onal

Joint

Food 2018-07-

39168 31883 liability N/A N 14 years N N

Industria 27

guaranty

l Park

Develop

ment

Co. Ltd.Total amount of

Total amount of

actual occurred

approving guarantee

49062 guarantee for 2469

for subsidiaries in

subsidiaries in report

report period (C1)

period (C2)

Total amount of Total balance of

approved guarantee actual guarantee for

for subsidiaries at 115530 subsidiaries at the 41804

the end of reporting end of reporting

period (C3) period (C4)

Total amount of guarantee of the Company (total of three above mentioned guarantee)

Total amount of Total amount of

approving guarantee actual occurred

1282004841

in report period guarantee in report

(A1+B1+C1) period (A2+B2+C3)

Total amount of Total balance of

approved guarantee actual guarantee at

23230072436

at the end of report the end of report

period (A3+B3+C2) period (A4+B4+C4)

The proportion of the total amount of

15.82%

actually guarantee in the net assets of the

37深圳市深粮控股股份有限公司2022年半年度报告全文

Company (that is A4+ B4+C4)

Including:

Balance of the guarantee provided for

shareholder actual controller and their 0

related parties (D)

The debts guarantee amount provided for the

guaranteed parties whose assets-liability ratio 72436

exceed 70% directly or indirectly (E)

Proportion of total amount of guarantee in

net assets of the Company exceed 50% (F)

Total amount of the aforesaid three

72436

guarantees (D+E+F)

Explanation on guarantee with composite way

N/A

3.Trust financing

√ Applicable □ Not applicable

Unit: 10 thousand Yuan

Impairment

amount accrual for

Type Fund sources Amount occurred Undue balance Overdue amount

overdue financial

management

Bank financial

Owned funds 34500 34500 0 0

products

Total 34500 34500 0 0

The high-risk trust investment with single major amount or has minor security poor fluidity and non-guaranteed

□ Applicable √Not applicable

Unrecoverable principal or impairment possibility from entrust investment

□ Applicable √ Not applicable

4. Other material contracts

□ Applicable √ Not applicable

No other material contracts in the period.XIII. Explanation of other important events

√ Applicable □ Not applicable

1. Changes in directors supervisor and senior executives

(1) On January 12 2022 the Company received a written resignation report from Director Mr. Wang Li who has reached the

statutory retirement age and has applied for resignation as a Director of the Company and Mr. Li does not hold any other positions in

the Company after leaving. Found more in Notice on Retirement of Directors released on Juchao Website (www.cninfo.com.cn)

dated January 14 2022.

38深圳市深粮控股股份有限公司2022年半年度报告全文

(2) On June 5 2022 President and legal representative of the Company Mr. Zhu Junming passed away due to illness number of the

directors was reduced from 8 to 7 which is not lower than the minimum number of directors as regulated in Company Law. Found

more in Notice on Death of the President and Legal Representative of the Company released on Juchao Website

(www.cninfo.com.cn) dated June 7 2022.XIV. Important events from subsidiaries

□ Applicable √ Not applicable

39深圳市深粮控股股份有限公司2022年半年度报告全文

Section VII. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

Unit: Share

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

Public

Bonu reserve

New

Proportio s transfer Othe Subto Proportio

Amount shares Amount

n share into rs tal n

issued

s share

capital

I. Restricted shares 684601142 59.40% 0 0 0 0 0 684601142 59.40%

1. State-owned

00.00%0000000.00%

2. State-owned

legal person’s 684569567 59.40% 0 0 0 0 0 684569567 59.40%

3. Other domestic

315750.00%00000315750.00%

Including:

Domestic legal 0 0.00% 0 0 0 0 0 0 0.00%

person’s shares

Domestic

natural person’s 31575 0.00% 0 0 0 0 0 31575 0.00%

4. Foreign shares 0 0.00% 0 0 0 0 0 0 0.00%

Including:

Foreign legal 0 0.00% 0 0 0 0 0 0 0.00%

person’s shares

Foreign

natural person’s 0 0.00% 0 0 0 0 0 0 0.00%

II. Unrestricted

46793411240.60%0000046793411240.60%

1. RMB ordinary

41618483236.11%0000041618483236.11%

2. Domestically

listed foreign 51749280 4.49% 0 0 0 0 0 51749280 4.49%

3. Overseas listed 0 0.00% 0 0 0 0 0 0 0.00%

40深圳市深粮控股股份有限公司2022年半年度报告全文

foreign shares

4. Others 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 reducing holdings of shares buy-back by centralized bidding

□ Applicable √ Not applicable

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

shareholders of Company in latest year and period

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

2. Changes of lock-up stocks

□ Applicable √ Not applicable

II. Securities issuance and listing

□ Applicable √ Not applicable

III. Number of shareholders and particulars about shares holding

Unit: Share

Total preference shareholders with voting

Total common stock shareholders in

55911 rights recovered at end of reporting period (if 0

reporting period-end

applicable) (see note 8)

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

Informatio

n of shares

Amount of

Amount of pledged

Proport common Amount of

common tagged or

Full name of Nature of ion of shares held at Changes in restricted

shares held frozen

Shareholders shareholder shares the end of report period common

without A

held reporting shares held State

restriction m

period of

41深圳市深粮控股股份有限公司2022年半年度报告全文

Shenzhen Food

State-owned

Materials Group 63.79% 735237253 0 669184735 66052518

legal person

Co. Ltd

Shenzhen

Agricultural State-owned

8.23%9483229401538483279447462

Products Group Co. legal person

Ltd

Dongguan Fruit

Domestic

Vegetable Non-

non-state 0.75% 8698216 8698216 0 8698216

staple Food Trading

legal person

Market Co. Ltd.Domestic

Jiang Runlin 0.46% 5300000 5300000 0 5300000

nature person

Hong Kong

Foreign legal

Securities Clearing 0.35% 4070515 1407928 0 4070515

person

Company Limited

Domestic

Lin Junbo 0.33% 3830100 230100 0 3830100

nature person

Domestic

Zhong Zhenxin 0.29% 3295500 0 0 3295500

nature person

Domestic

Sun Huiming 0.28% 3250062 0 0 3250062

nature person

Domestic

Chen Jiuyang 0.26% 2978570 121870 0 2978570

nature person

Domestic

Wang Yulin 0.12% 1370630 1370630 0 1370630

nature person

Strategy investor or general legal

person becoming the top 10 common

N/A

shareholders by placing new shares

(if applicable) (see note 3)

Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co.Ltd. and holds 34% of Shenzhen Agricultural Products Group Co. Ltd. indirectly

Explanation on associated

through Shenzhen Food Materials Group Co. Ltd.; the Company was not aware of any

relationship among the aforesaid

related relationship between other shareholders above and whether they belonged to

shareholders

parties acting in concert as defined by the Acquisition Management Method of Listed

Company.Description of the above

shareholders in relation to

N/A

delegate/entrusted voting rights and

abstention from voting rights.Special note on the repurchase

account among the top 10 N/A

shareholders (if applicable) (see note

42深圳市深粮控股股份有限公司2022年半年度报告全文

11)

Particular about top ten shareholders with un-lock up common stocks held

Amount of common shares held without Type of shares

Shareholders’ name

restriction at Period-end Type Number

Shenzhen Agricultural Products RMB common

7944746279447462

Group Co. Ltd shares

Shenzhen Food Materials Group Co. RMB common

6605251866052518

Ltd shares

Dongguan Fruit Vegetable Non- RMB common

86982168698216

staple Food Trading Market Co. Ltd. shares

RMB common

Jiang Runlin 5300000 5300000

Hong Kong Securities Clearing RMB common

40705154070515

Company Limited shares

RMB common

Lin Junbo 3830100 3830100

RMB common

Zhong Zhenxin 3295500 3295500

Domestically

Sun Huiming 3250062 listed foreign 3250062

RMB common

Chen Jiuyang 2978570 2978570

RMB common

Wang Yulin 1370630 1370630

Expiation on associated relationship Shenzhen SASAC directly holds 100% equity of Shenzhen Food Materials Group Co.or consistent actors within the top 10 Ltd. and holds 34% of Shenzhen Agricultural Products Group Co. Ltd. indirectly

un-lock up common shareholders and through Shenzhen Food Materials Group Co. Ltd.; the Company was not aware of any

between top 10 un-lock up common related relationship between other shareholders above and whether they belonged to

shareholders and top 10 common parties acting in concert as defined by the Acquisition Management Method of Listed

shareholders Company.At the end of reporting period Shareholder – Lin Junbo holds 3094100 shares of the

Company under customer credit trading secured securities account through China

Explanation on top 10 common

Merchants Securities Co. Ltd. common account holds 736000 shares and 3830100

shareholders involving margin

shares are held in total at end of the Period. During the reporting period the credit trading

business (if applicable) (see note 4)

secured securities account has 505900 shares decreased and shares held in the common

account has 736000 shares increased shares held are increased 230100 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.

43深圳市深粮控股股份有限公司2022年半年度报告全文

IV. Changes of shares held by directors supervisors and senior executives

□ Applicable √ Not applicable

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

2021.

V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period

□ Applicable √ Not applicable

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

Change of actual controller during the reporting period

□ Applicable √ Not applicable

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

44深圳市深粮控股股份有限公司2022年半年度报告全文

Section VIII. Preferred Stock

□ Applicable √ Not applicable

The Company had no preferred stock in the Period.

45深圳市深粮控股股份有限公司2022年半年度报告全文

Section IX Corporate Bonds

□ Applicable √ Not applicable

46深圳市深粮控股股份有限公司2022年半年度报告全文

Section X Financial Report

I. Audit report

Whether the semi annual report is audited

□ Yes √ No

The company's semi annual financial report has not been audited

II. Financial Statement

Statement in Financial Notes are carried Unit: CNY/RMB

1. Consolidated Balance Sheet

Prepared by SHENZHEN CEREALS HOLDINGS CO. LTD.June 30 2022

Unit: CNY/RMB

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 72460681.82 50409923.65

Settlement provisions

Capital lent

Trading financial assets 72348385.01 211060770.50

Derivative financial assets

Note receivable 97750.00 687242.00

Account receivable 174146597.77 283047341.62

Receivable financing

Accounts paid in advance 94594325.01 115894774.61

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 46469468.38 32377838.35

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 3619041269.92 3460618674.81

Contract assets

Assets held for sale

Non-current asset due within one

year

47深圳市深粮控股股份有限公司2022年半年度报告全文

Other current assets 96125797.78 88457984.90

Total current assets 4175284275.69 4242554550.44

Non-current assets:

Loans and payments on behalf

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment 72955363.50 73490443.49

Investment in other equity

instrument

Other non-current financial

80057500.0057500.00

assets

Investment real estate 225116917.61 233096698.49

Fixed assets 2122654384.98 2127831149.19

Construction in progress 198788393.17 207946539.97

Productive biological asset 373155.60 378001.80

Oil and gas asset

Right-of-use assets 87899195.17 97648674.06

Intangible assets 595234927.12 609405194.82

Expense on Research and

326306.90

Development

Goodwill 1953790.56 1953790.56

Long-term expenses to be

26155659.3028795206.45

apportioned

Deferred income tax asset 40597732.21 40529425.47

Other non-current asset 5297491.87 5931731.58

Total non-current asset 3457410817.99 3427064355.88

Total assets 7632695093.68 7669618906.32

Current liabilities:

Short-term loans 725635087.73 504766782.25

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable

Account payable 554848179.43 426906669.71

Accounts received in advance 8440204.85 2379891.67

Contract liability 83531467.12 182972314.85

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

48深圳市深粮控股股份有限公司2022年半年度报告全文

Security sales of agency

Wage payable 243659888.70 320706055.47

Taxes payable 45257793.47 86813588.15

Other account payable 379510687.74 376607198.99

Including: Interest payable

Dividend payable 2933690.04 2933690.04

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due

112832529.55128732475.16

within one year

Other current liabilities 1764823.46 4367576.91

Total current liabilities 2155480662.05 2034252553.16

Non-current liabilities:

Insurance contract reserve

Long-term loans 624310269.81 730521692.22

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability 79340597.07 80173743.75

Long-term account payable 17445737.26 17266921.98

Long-term wages payable

Accrual liability 3500000.00 3500000.00

Deferred income 87080932.92 93129536.68

Deferred income tax liabilities 13661333.11 13868191.82

Other non-current liabilities

Total non-current liabilities 825338870.17 938460086.45

Total liabilities 2980819532.22 2972712639.61

Owner’s equity:

Share capital 1152535254.00 1152535254.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 1259639656.65 1259639656.65

Less: Inventory shares

Other comprehensive income

Reasonable reserve

Surplus public reserve 405575490.42 405575490.42

Provision of general risk

Retained profit 1761935670.70 1812541701.27

49深圳市深粮控股股份有限公司2022年半年度报告全文

Total owner’ s equity attributable to

4579686071.774630292102.34

parent company

Minority interests 72189489.69 66614164.37

Total owner’ s equity 4651875561.46 4696906266.71

Total liabilities and owner’ s equity 7632695093.68 7669618906.32

Legal Representative: Hu Xianghai

Person in charge of accounting works: Lu Yuhe

Person in charge of accounting institute: Wen Jieyu

2. Balance Sheet of Parent Company

Unit: CNY/RMB

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 3445937.73 2264388.89

Trading financial assets 72189251.68 181047789.68

Derivative financial assets

Note receivable

Account receivable 33806426.32 135678426.30

Receivable financing

Accounts paid in advance

Other account receivable 1163766691.58 983939717.84

Including: Interest receivable

Dividend

540000000.00540000000.00

receivable

Inventories

Contract assets

Assets held for sale

Non-current assets maturing

within one year

Other current assets 274391.11 1083482.32

Total current assets 1273482698.42 1304013805.03

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 4024019425.09 4048519425.09

Investment in other equity

instrument

Other non-current financial

assets

50深圳市深粮控股股份有限公司2022年半年度报告全文

Investment real estate 16279118.62 16514913.76

Fixed assets 33958651.80 32097138.18

Construction in progress 516131.26 239282.75

Productive biological assets 373155.60 378001.80

Oil and natural gas assets

Right-of-use assets

Intangible assets 17924048.27 19338264.04

Research and development costs

Goodwill

Long-term deferred expenses 1354041.18 1538731.98

Deferred income tax assets

Other non-current assets 4701190.87 4602630.58

Total non-current assets 4099125762.69 4123228388.18

Total assets 5372608461.11 5427242193.21

Current liabilities:

Short-term borrowings 28175026.24

Trading financial liability

Derivative financial liability

Notes payable

Account payable

Accounts received in advance

Contract liability

Wage payable 27395625.61 29472163.62

Taxes payable 4967437.88 2801612.80

Other accounts payable 963897833.67 764330925.37

Including: Interest payable

Dividend payable 2933690.04 2933690.04

Liability held for sale

Non-current liabilities due

within one year

Other current liabilities

Total current liabilities 996260897.16 824779728.03

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

51深圳市深粮控股股份有限公司2022年半年度报告全文

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 3500000.00 3500000.00

Total liabilities 999760897.16 828279728.03

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 133171062.28 133171062.28

Retained profit 69034679.40 295149580.63

Total owner’s equity 4372847563.95 4598962465.18

Total liabilities and owner’s equity 5372608461.11 5427242193.21

3. Consolidated Profit Statement

Unit: CNY/RMB

Item Semi-annual of 2022 Semi-annual of 2021

I. Total operating income 4338044528.35 5262189180.53

Including: Operating income 4338044528.35 5262189180.53

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 4027985541.37 4901525013.61

Including: Operating cost 3775825625.81 4650397070.67

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

52深圳市深粮控股股份有限公司2022年半年度报告全文

Tax and extras 9050485.91 6969279.85

Sales expense 79331081.69 106711776.77

Administrative expense 125631541.74 109316093.65

R&D expense 10137177.77 10926018.15

Financial expense 28009628.45 17204774.52

Including: Interest

27256521.8715362400.04

expenses

Interest

1233894.54765002.68

income

Add: Other income 8030243.98 4891929.30

Investment income (Loss is

3038365.753501371.30

listed with “-”)

Including: Investment

income on affiliated company and joint -535079.99 440179.67

venture

The termination of

income recognition for financial assets

measured by amortized cost

Exchange income (Loss is

listed with “-”)

Net exposure hedging

income (Loss is listed with “-”)

Income from change of fair

221889.46288972.32

value (Loss is listed with “-”)

Loss of credit impairment

245856.0134157.37

(Loss is listed with “-”)

Losses of devaluation of

-81499450.86-111448173.12

asset (Loss is listed with “-”)

Income from assets disposal

8318.64

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

240095891.32257940742.73

“-”)

Add: Non-operating income 1133017.31 1627702.56

Less: Non-operating expense 67133.97 403164.30

IV. Total profit (Loss is listed with “-”) 241161774.66 259165280.99

Less: Income tax expense 2958666.41 13407354.56V. Net profit (Net loss is listed with “-

238203108.25245757926.43

”)

(i) Classify by business continuity

1.continuous operating net profit

238203108.25245757926.43(net loss listed with ‘-”)

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

(ii) Classify by ownership

53深圳市深粮控股股份有限公司2022年半年度报告全文

1.Net profit attributable to

237527782.93243846874.76

owner’s of parent company

2.Minority shareholders’ gains

675325.321911051.67

and losses

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

54深圳市深粮控股股份有限公司2022年半年度报告全文

VII. Total comprehensive income 238203108.25 245757926.43

Total comprehensive income

attributable to owners of parent 237527782.93 243846874.76

Company

Total comprehensive income

675325.321911051.67

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.2061 0.2116

(ii) Diluted earnings per share 0.2061 0.2116

Enterprise combines 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: Hu Xianghai

Person in charge of accounting works: Lu Yuhe

Person in charge of accounting institute: Wen Jieyu

4. Profit Statement of Parent Company

Unit: CNY/RMB

Item Semi-annual of 2022 Semi-annual of 2021

I. Operating income 94732571.88 78409527.17

Less: Operating cost 235795.14 235795.14

Taxes and surcharge 239797.63 443112.63

Sales expenses

Administration expenses 35210060.97 40040419.50

R&D expenses

Financial expenses -249289.38 893183.83

Including: Interest

1215509.601145171.80

expenses

Interest

1385168.73285480.74

income

Add: Other income 216639.79 169161.92

Investment income (Loss is

2279175.50567166.06

listed with “-”)

Including: Investment

income on affiliated Company and

joint venture

The termination of

income recognition for financial

assets measured by amortized cost

(Loss is listed with “-”)

Net exposure hedging

55深圳市深粮控股股份有限公司2022年半年度报告全文

income (Loss is listed with “-”)

Changing income of fair

221889.46288972.32

value (Loss is listed with “-”)

Loss of credit impairment

-220207.77

(Loss is listed with “-”)

Losses of devaluation of

asset (Loss is listed with “-”)

Income on disposal of

assets (Loss is listed with “-”)

II. Operating profit (Loss is listed

62013912.2737602108.60

with “-”)

Add: Non-operating income 5000.00

Less: Non-operating expense 150000.00III. Total Profit (Loss is listed with “-

62018912.2737452108.60

”)

Less: Income tax

IV. Net profit (Net loss is listed with

62018912.2737452108.60

“-”)

(i) continuous operating net

62018912.2737452108.60profit (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

56深圳市深粮控股股份有限公司2022年半年度报告全文

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 62018912.27 37452108.60

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: CNY/RMB

Item Semi-annual of 2022 Semi-annual of 2021

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 4505675220.29 4872625307.71

services

Net increase of customer deposit

and interbank deposit

Net increase of loan from central

bank

Net increase of capital borrowed

from other financial institution

Cash received from original

insurance contract fee

Net cash received from

reinsurance business

Net increase of insured savings

and investment

Cash received from interest

commission charge and commission

Net increase of capital borrowed

Net increase of returned business

capital

Net cash received by agents in

57深圳市深粮控股股份有限公司2022年半年度报告全文

sale and purchase of securities

Write-back of tax received 27412268.12 15314266.13

Other cash received concerning

969031224.09509043498.66

operating activities

Subtotal of cash inflow arising from

5502118712.505396983072.50

operating activities

Cash paid for purchasing

commodities and receiving labor 3881170164.56 5229031194.26

service

Net increase of customer loans

and advances

Net increase of deposits in

central bank and interbank

Cash paid for original insurance

contract compensation

Net increase of capital lent

Cash paid for interest

commission charge and commission

Cash paid for bonus of guarantee

slip

Cash paid to/for staff and

213374966.28158496287.47

workers

Taxes paid 117336305.52 108750086.71

Other cash paid concerning

1029863773.28591977655.39

operating activities

Subtotal of cash outflow arising from

5241745209.646088255223.83

operating activities

Net cash flows arising from operating

260373502.86-691272151.33

activities

II. Cash flows arising from investing

activities:

Cash received from recovering

485000000.00270000000.00

investment

Cash received from investment

2507720.693051423.05

income

Net cash received from disposal

of fixed intangible and other long- 570.00 17565.00

term assets

Net cash received from disposal

of subsidiaries and other units

Other cash received concerning

154.4954336.41

investing activities

Subtotal of cash inflow from

487508445.18273123324.46

investing activities

58深圳市深粮控股股份有限公司2022年半年度报告全文

Cash paid for purchasing fixed

97877199.0198438615.15

intangible and other long-term assets

Cash paid for investment 415000000.00 120006966.66

Net increase of mortgaged loans

Net cash received from

321680000.00

subsidiaries and other units obtained

Other cash paid concerning

928.80109602.00

investing activities

Subtotal of cash outflow from

512878127.81540235183.81

investing activities

Net cash flows arising from investing

-25369682.63-267111859.35

activities

III. Cash flows arising from financing

activities:

Cash received from absorbing

4900000.00490000.00

investment

Including: Cash received from

absorbing minority shareholders’ 4900000.00

investment by subsidiaries

Cash received from loans 1923171121.48 2006423247.45

Other cash received concerning

financing activities

Subtotal of cash inflow from

1928071121.482006913247.45

financing activities

Cash paid for settling debts 1817214190.96 907763968.37

Cash paid for dividend and

314281984.10262471931.68

profit distributing or interest paying

Including: Dividend and profit

of minority shareholder paid by

subsidiaries

Other cash paid concerning

9528424.77

financing activities

Subtotal of cash outflow from

2141024599.831170235900.05

financing activities

Net cash flows arising from financing

-212953478.35836677347.40

activities

IV. Influence on cash and cash

equivalents due to fluctuation in 40259.74 -13479.55

exchange rate

V. Net increase of cash and cash

22090601.62-121720142.83

equivalents

Add: Balance of cash and cash

49370080.20190494225.94

equivalents at the period -begin

VI. Balance of cash and cash 71460681.82 68774083.11

59深圳市深粮控股股份有限公司2022年半年度报告全文

equivalents at the period -end

6. Cash Flow Statement of Parent Company

Unit: CNY/RMB

Item Semi-annual of 2022 Semi-annual of 2021

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 456611209.00 826505.31

services

Write-back of tax received 127947.08

Other cash received concerning

1390207872.37664855399.05

operating activities

Subtotal of cash inflow arising from

1846947028.45665681904.36

operating activities

Cash paid for purchasing

commodities and receiving labor 45000000.00

service

Cash paid to/for staff and

31404815.0625664475.70

workers

Taxes paid 2411446.34 1938500.47

Other cash paid concerning

1384817990.79337740658.17

operating activities

Subtotal of cash outflow arising from

1418634252.19410343634.34

operating activities

Net cash flows arising from operating

428312776.26255338270.02

activities

II. Cash flows arising from investing

activities:

Cash received from recovering

255000000.0010000000.00

investment

Cash received from investment

1359602.96123077.77

income

Net cash received from disposal

of fixed intangible and other long-

term assets

Net cash received from disposal

of subsidiaries and other units

Other cash received concerning

54336.41

investing activities

Subtotal of cash inflow from

256359602.9610177414.18

investing activities

Cash paid for purchasing fixed 4135551.25 4271363.11

60深圳市深粮控股股份有限公司2022年半年度报告全文

intangible and other long-term assets

Cash paid for investment 145000000.00 20006966.66

Net cash received from

321680000.00

subsidiaries and other units obtained

Other cash paid concerning

216912975.11

investing activities

Subtotal of cash outflow from

366048526.36345958329.77

investing activities

Net cash flows arising from investing

-109688923.40-335780915.59

activities

III. Cash flows arising from financing

activities:

Cash received from absorbing

investment

Cash received from loans 342127475.10 411800462.65

Other cash received concerning

financing activities

Subtotal of cash inflow from

342127475.10411800462.65

financing activities

Cash paid for settling debts 370299684.12 99925561.27

Cash paid for dividend and

289268397.83230890398.24

profit distributing or interest paying

Other cash paid concerning

financing activities

Subtotal of cash outflow from

659568081.95330815959.51

financing activities

Net cash flows arising from financing

-317440606.8580984503.14

activities

IV. Influence on cash and cash

equivalents due to fluctuation in -1697.17

exchange rate

V. Net increase of cash and cash

1181548.84541857.57

equivalents

Add: Balance of cash and cash

2264388.895312806.71

equivalents at the period -begin

VI. Balance of cash and cash

3445937.735854664.28

equivalents at the period -end

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

Current Amount

Unit: CNY/RMB

Semi-annual of 2022

Item

Owners’ equity attributable to the parent Company Min Tota

61深圳市深粮控股股份有限公司2022年半年度报告全文

Other ority l

equity inter own

Othe

instrument Less ests ers’

r Prov

Per : Reas equit

Sha Capi com Surp ision Reta

pet Inve onab y

re Pre tal preh lus of ined Othe Subt

ual ntor le

cap fer reser ensi reser gene profi r otal

cap Ot y reser

ital red ve ve ve ral t

ital her shar ve

sto inco risk

sec es

ck me

urit

ies

52125405181463666469

I. The ending

535963575254029141690

balance of the

25965490.17021064.3626

previous year

4.06.65421.272.3476.71

Add: Changes

of accounting

policy

Error

correction of

the last period

Enterprise

combine

under the

same control

Other

II. The 52 125 405 181 463 666 469

beginning 535 963 575 254 029 141 690

balance of the 25 965 490. 170 210 64.3 626

current year 4.0 6.65 42 1.27 2.34 7 6.71

III. Increase/

---

Decrease in

506506557450

the period

060060532307

(Decrease is

30.530.55.3205.2listed with “-

775

”)

237237238

(i) Total 675

527527203

comprehensiv 325.

782.782.108.

e income 32

939325

62深圳市深粮控股股份有限公司2022年半年度报告全文

(ii) Owners’

490490

devoted and

000000

decreased

0.000.00

capital

1.Common

490490

000000

invested by

0.000.00

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based

payment

4. Other

---

288288288

(iii) Profit

133133133

distribution

813.813.813.

505050

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general

risk

provisions

---

288288288

Distribution

133133133

for owners (or

813.813.813.

shareholders)

505050

4. Other

(iv) Carrying

forward

internal

owners’

equity

1. Capital

63深圳市深粮控股股份有限公司2022年半年度报告全文

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 723 723 723

in the report 692. 692. 692.period 27 27 27

2. Usage in 723 723 723

the report 692. 692. 692.period 27 27 27

(vi) Others

52125405176457721465

VI. Balance at

535963575193968894187

the end of the

25965490.56760789.6556

period

4.06.65420.701.7791.46

Amount of the previous period

Unit: CNY/RMB

Item Semi-annual of 2021

64深圳市深粮控股股份有限公司2022年半年度报告全文

Owners’ equity attributable to the parent Company

Other

equity

instrument

Pe Othe

Less

rpe r Prov Total

: Reas Mino

Sha tua Capi com Surp ision Reta owne

Pr Inve onab rity

re l tal preh lus of ined Othe Subt rs’

efe ntor le intere

cap ca reser ensi reser gene profi r otal equit

rre Oth y reser sts

ital pit ve ve ve ral t y

d er shar ve

al inco risk

sto es

sec me

uri

tie

I. The ending 52 142 382 163 459 4795

1999

balance of 535 289 367 753 533 245

1340

the previous 25 272 575. 644 199 404.0

4.33

year 4.0 9.36 37 1.03 9.76 9

Add:

Changes of

accounting

policy

Error

correction of

the last

period

Enterprise

combine

under the

same control

Other

II. The

521423821634594795

beginning 1999

535289367753533245

balance of 1340

25272575.644199404.0

the current 4.33

4.09.36371.039.769

year

III. Increase/ - 133 - - -

Decrease in 160 398 147 1598 3070

the period 572 23.9 232 3743 7032

(Decrease is 715. 6 891. 2.71 4.37

65深圳市深粮控股股份有限公司2022年半年度报告全文listed with “- 62 66”)

243243

(i) Total 1911 2457

846846

comprehensi 051. 5792

874.874.

ve income 67 6.43

7676

(ii) Owners’ - -

160160

devoted and 1617 3223

572572

decreased 4848 2120

715.715.

capital 4.38 0.00

6262

1.Common - -

160160

shares 1617 3223

572572

invested by 4848 2120

715.715.

shareholders 4.38 0.00

6262

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners

equity with

share-based

payment

4. Other

230230

(iii) Profit 2305

507507

distribution 0705

050.050.

0.80

8080

Withdrawal

of surplus

reserves

Withdrawal

of general

risk

provisions

3.---

Distribution 230 230 2305

66深圳市深粮控股股份有限公司2022年半年度报告全文

for owners 507 507 0705

(or 050. 050. 0.80

shareholders) 80 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)

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

Withdrawal

in the report

period

67深圳市深粮控股股份有限公司2022年半年度报告全文

2. Usage in

the report

period

(vi) Others

521263821654444488

VI. Balance 4007

535232367087809175

at the end of 5971

25001575.626910079.7

the period .62

4.03.74374.998.102

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

Current Amount

Unit: CNY/RMB

Semi-annual of 2022

Other

equity instrument Other

Perp Capita Less: compr Reaso Surplu Retai

Share Total

Item etual l Invent ehensi nable s ned

capit Prefe Other owners’

capit Othe reserv ory ve reserv reserv profi

al rred equity

al r e shares incom e e t

stock

secur e

ities

1152295

I. The ending 3018 13317

535149459896

balance of the 10656 1062.

254.0580.2465.18

previous year 8.27 28

063

Add:

Changes of

accounting

policy

Error

correction of

the last period

Other

II. The 1152 295

301813317

beginning 535 149 459896

106561062.

balance of the 254.0 580. 2465.18

8.2728

current year 0 63

III. Increase/ -

Decrease in 226

226114

the period 114

901.23

(Decrease is 901.

68深圳市深粮控股股份有限公司2022年半年度报告全文

listed with “-”) 23

620

(i) Total

189620189

comprehensive

12.212.27

income

(ii) Owners’

devoted and

decreased

capital

1.Common

invested by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based payment

4. Other

288-

(iii) Profit

133288133

distribution

813.813.50

1. Withdrawal

of surplus

reserves

2. Distribution 288 -

for owners (or 133 288133

shareholders) 813. 813.50

3. Other

(iv) Carrying

forward

internal

owners’ equity

1. Capital

reserves

69深圳市深粮控股股份有限公司2022年半年度报告全文

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

1152690

VI. Balance at 3018 13317

535346437284

the end of the 10656 1062.

254.079.47563.95

period 8.27 28

Amount of the previous period

Unit: CNY/RMB

Semi-annual of 2021

Other Other

Shar equity instrument Capit Less: compr Surpl

Reason Total

Item e Pref Perp al Invent ehensi us Retaine

able Other owners’

capit erre etual Othe reserv ory ve reserv d profit

reserve equity

al d capit r e shares incom e

stoc al e

70深圳市深粮控股股份有限公司2022年半年度报告全文

k secu

ritie

115

I. The ending 3018 1099 31678

253459739

balance of the 1065 6314 5396.0

5250365.51

previous year 68.27 7.23 1

4.00

Add:

Changes of

accounting

policy

Error

correction of

the last

period

Other

II. The 115

3018109931678

beginning 253 459739

106563145396.0

balance of the 525 0365.51

68.277.231

current year 4.00

III. Increase/

Decrease in -

the period 19305

193054

(Decrease is 4942.2

942.20listed with “- 0”)

(i) Total

37452374521

comprehensiv

108.6008.60

e income

(ii) Owners’

devoted and

decreased

capital

1.Common

invested by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

71深圳市深粮控股股份有限公司2022年半年度报告全文

owners equity

with share-

based

payment

4. Other

(iii) Profit 23050

230507

distribution 7050.8

050.80

Withdrawal

of surplus

reserves

Distribution -

23050

for owners 230507

7050.8

(or 050.80

shareholders)

3. Other

(iv) Carrying

forward

internal

owners’

equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with

surplus

reserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

72深圳市深粮控股股份有限公司2022年半年度报告全文

retained

earnings from

other

comprehensiv

e income

6. Other

(v)

Reasonable

reserve

Withdrawal

in the report

period

2. Usage in

the report

period

(vi) Others

115

VI. Balance 3018 1099 12373

253440433

at the end of 1065 6314 0453.8

5255423.31

the period 68.27 7.23 1

4.00

III. Basic information 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 2022 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

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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 Materials Group Co. Ltd; actual controller of the

Company: Assets Supervision and Administration Commission of Shenzhen municipal People’s Government.Change of the consolidate scope in the Period found more in “Note VIII. Change of consolidate scope”

Information with subsidiaries concerned found more in the “Note IX. Equity in other entity”

IV. Basis of preparation of financial statements

1. Basis of preparation

The financial statement are prepared in line with the Accounting Standards for Business Enterprise -Basic

Standard issued by Ministry of Finance and specific accounting principle as well as the application guidance for

the accounting principles for enterprise interpretation to the accounting principles for enterprise and other related

requirements (hereinafter referred to as Accounting Standards for Business Enterprise) combining the

Information Disclosure Preparation Rules for Company Public Issuing Securities No.15-General Rules for

Financial Report of the CSRC

2. Going concern

The financial statement has been prepared on a going concern basis.V. Major accounting policy accounting estimation

Specific accounting policies and estimation attention:

The following disclosures have covered the specific accounting policy and estimation formulated by the Company in accordance

with the actual production and operation characteristics. Found more in Note “15. Inventory ” “24. Fix assets” and“39. Revenue”

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 2022 as well as the consolidate and parent company’s operational

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results and cash flow from Jan.-Jun. of 2022.

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: Combination cost is the fair value of the assets paid the

liabilities incurred or assumed by the purchaser for the acquisition of the control of the purchaser and the equity

securities issued on the purchase date. 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. Each identifiable assets liabilities and contingent liability of the acquiree acquired in a

combination that qualifies for recognition is measured at fair value at the date of purchase.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.

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6. Methods for preparation of consolidated financial statements

1.1 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. Control means that the Company has power over the investee

enjoys variable returns through its participation in the investee’s related activities and has the ability to influence

the amount of returns by using the power over the investee.

1.2 Consolidated procedure

The Company regards the entire enterprise group as an accounting entity and prepares consolidated financial

statements in accordance with unified accounting policies to reflect the overall financial status operating results

and cash flow of the enterprise group. The influence of internal transactions between the company and its

subsidiaries and among the subsidiaries shall be offset. If internal transactions indicate that the relevant assets

have suffered impairment losses the partial losses shall be confirmed in full. If the accounting policy and

accounting period adopted by the subsidiary are inconsistent with the Company when preparing the consolidated

financial statements make necessary adjustments in accordance with the Company's accounting policy and

accounting period.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 the operation results and cash flow of the subsidiaries or business from beginning to the end of the

reporting shall be included in the consolidated profit statement; also adjust the opening figures of the consolidated

financial statements and the related items in the comparative statements the consolidated reporting body is

considered to have existed since the point when the ultimate controller began to control it.If additional investment and other reasons can lead investee to be controlled under the same 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 if a subsidiary or business is added due to a business combination not under the same

control it shall be included in the consolidated financial statements on the basis of the fair value of various

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identifiable assets liabilities and contingent liabilities determined on the purchase date.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 changes

in owner’s equity under the equity method of accounting that can be reclassified to profit or loss at a later date are

transferred to investment income for the period to which they belong at the date of purchase.

(2) Disposal of subsidiaries

* The general approach

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

changes in owner’s equity under the equity method of accounting related to equity investments in former

subsidiaries that can be reclassified to profit or loss in the future are transferred to investment income in the

current period when control is lost.* 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 each transaction is a package transaction each transaction is accounted for as a disposal of a subsidiary and loss

of control; 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 each 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

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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 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

The joint venture arrangement are divided into joint operations and joint ventures.The joint operation a joint venture arrangement in which the joint ventures enjoys the assets and bear the

liabilities associated with the arrangement.The Company recognized the following items related to its shares of interest in the joint operation:

(1) Recognition of the assets held separately by the Company and recognition of the jointly held assets based on

the share of the Company;

(2) Recognition of the liabilities borne by the Company individually and liabilities borne jointly in proportion to

the shares;

(3)Recognition of revenue from the sales of the shares of common operating output;

(4) Recognition of the revenue from joint operation arising from the sale of the output at the shares;

(5) Recognition of the separately incurred costs and recognition ot the expenses incurred in joint operations based

on the shares;Investment in joint venture is accounted for using the equity method found more in “V(22) Long-term equityinvestment”

8. Recognition standards for cash and cash equivalents

Cash refers to the cash on hand and cash equivalents of deposits that can be used for payment at any time. Cash

equivalent refers to the investment held by the Company with short maturity and strong liquidity that are easy to

be converted into known amounts with little risk of change in cash value.

9. Foreign currency business and conversion of foreign currency statement

1.1 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

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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.

1.2 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

The Company recognizes a financial assets financial liabilities or equity instrument when it becomes a party to a

financial instrument contract.

1.1 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 Company classifies the financial assets that meet the following conditions and are not designated to be

measured at fair value and whose changes are recorded into the current gain/losses as financial assets measured at

amortized cost:

－ the business mode is aimed at collecting contractual cash flows；

－ contractual cash flows represent only payments of principal and interest based on the outstanding principal

amount.The Company classifies the financial assets (debt instruments) that meet the following conditions and are not

specified as measured at fair value and whose changes are recorded into the current gain/losses as financial assets

(debt instruments) measured at fair value and whose changes are recorded into other comprehensive income:

－ the business model is aimed at both the collection of contractual cash flows and the sales of the financial

assets;

－ contractual cash flows represent only payments of principal and interest based on the outstanding principal

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amount.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. The designation is made on a single investment basis and the related investment meet the

definition of an equity instrument from an issuer’s perspective.Except for the above-mentioned financial assets measured at amortized cost and at fair value with changes

included in other comprehensive income the Company classifies all other financial assets as financial assets

measured at fair value and with changes included in current profits and losses. At the time of initial recognition if

accounting mismatches can be eliminated or significantly reduced the Company can irrevocably designate the

financial assets that should be classified as financial assets measured at amortized cost or measured at fair value

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

whose changes are included in the 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.

1.2 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

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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

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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.

1.3 Termination of recognition and transfer of financial assets

If one of the following conditions is satisfied the Company shall terminate the recognition of financial assets:

－ the contractual rights to receive cash flows from financial assets terminates;

－ the financial asset has been transferred and virtually all the risks and rewards of the ownership of the financial

asset have been transferred to the transferee;

－ the financial assets have been transferred. Although the company has neither transferred nor retained nearly all

the risks and rewards of ownership of the financial assets it has not retained control of the financial assets

When transfer of financial assets occurs if substantially all the risks and rewards of ownership of the financial

asset are retained the recognition of the financial asset shall not be terminated.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 for the financial assets (debt instrument) measured at fair value

and whose changes are recorded into other comprehensive income)

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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).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.

1.4 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.

1.5 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

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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.

1.6 Testing of the financial assets impairment and accounting treatment

The Company estimates the expected credit losses of financial assets measured at amortized cost financial assets

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

financial guarantee contracts in a single or combined way.The Company considers reasonable and well-founded information about past events current conditions and

forecasts of future economic conditions and uses the risk of default as the weight to calculate the probability-

weighted amount of the present value of the difference between the cash flow receivable from the contract and the

cash flow expected to be received to confirm the expected credit loss.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.The Company compares the risk of default on the balance sheet date of financial instruments with the risk of

default on the date of initial recognition to determine the relative change in the risk of default during the expected

life of the financial instrument so as to assess whether the credit risk of the financial instrument has increased

significantly since the initial recognition. 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.Regarding the accounts receivable and contract assets formed from transactions regulated by the "Accounting

Standards for Business Enterprises No. 14-Revenue" (2017) regardless of whether it contains a significant

financing component the Company always measure its loss reserves at the amount equivalent to the expected

credit loss during the entire duration.

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For lease receivables the Company always chooses to measure its loss reserves at an amount equivalent to

expected credit losses during the entire duration.If the Company no longer reasonably expects whether the contractual cash flow of a financial asset can be

recovered in whole or in part it will directly write down the book balance of the financial asset.

11. Note receivable

12. Account receivable

13. Receivable financing

14. Other account receivable

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

15. Inventory

1.1 Classification and costs of inventory

Inventory includes raw materials revolving material goods in process goods in transit and work in process-

outsourced and so on.Inventory is initially measured at cost which includes the costs of purchase processing costs and other

expenditures incurred in bringing the inventories to their present location and condition.

1.2 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.

1.3 Recognition standards of the net realizable value for inventory

On the balance sheet date inventories shall be measured at the lower of cost and net realizable value. When the

cost of inventories is higher than its net realizable value make provisions for inventory write-down. The net

realizable value refers to the amount of the estimated selling price of the inventory minus the estimated cost

estimated selling expenses and related taxes and fees at the time of completion in daily activities.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

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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.After making provisions for inventory write-down if the factors that previously affected the write-down of the

inventory value have disappeared causing the net realizable value of the inventory to be higher than its book

value it shall be reversed within the amount of the inventory write-down that has been withdrawn and the

reversed amount is included in the current profit and loss.

1.4 Inventory system

Inventory system is the perpetual inventory system.

1.5 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. Contract asset

1.1Methods and criteria for recognition of a contract asset

The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between

performance obligations and customer payments. The Company lists the right (and the right depends on other

factors other than the passage of time) to receive consideration for the transfer of goods or services to customers

as contract assets. Contract assets and contract liabilities under the same contract are presented in net amount. The

Company's unconditional (only depending on the passage of time) right to collect consideration from customers

are separately listed as receivables.

1.2Determination method and accounting treatment method of expected credit loss of contract assets

Found more in the (10).6 Testing of the financial assets impairment and accounting treatment carried under

Note V

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17. Contract cost

18. Assets held for sale

19. Creditors’ investment

20. Other creditors’ investment

21. Long-term account receivable

22. Long-term equity investment

1.1Criteria 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.

1.2Determination of initial investment cost

(1) Long-term equity investment formed by business combination

For a long-term equity investment in a subsidiary formed by a business combination under the same control the

initial investment cost of the long-term equity investment is based on the share of the book value of the owner’s

equity of the combined party obtained in the consolidated financial statements of the ultimate controlling party on

the combining date. The difference between the initial investment cost of long-term equity investment and the

book value of the consideration paid shall be used to adjust the equity premium in the capital reserve; when the

equity premium in the capital reserve is insufficient to offset adjust the retained earnings. If it is possible to

exercise control over an investee under the same control due to additional investment etc. adjust the equity

premium based on the difference between the initial investment cost of the long-term equity investment confirmed

in accordance with the above principles and the book value of the long-term equity investment before the

combination plus the sum of the book value of the new valuable consideration for the shares obtained on the

combining date if the equity premium is not enough to offset offset the retained earnings.For long-term equity investment in a subsidiaries formed by business combination not under the same control the

initial investment cost is based on the cost of the combination determined at the date of purchase. If it is possible

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to exercise control over an investee not under the same control due to additional investment the sum of book

value of the equity investment originally held plus the cost of the additional investment is used as the initial

investment cost.

(2) Long-term equity investment required by means other than business combination

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

1.3Subsequent 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 unless the investment qualities as held

for sale. 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. And adjusted the costs

of long-term equity investment at the same time.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

(abbreviated as other changes of owners’ equity) and is to report in owners’ equity accordingly.When confirming the share of the net profit and loss other comprehensive income and other owner’s equity

changes that should be enjoyed by the investee adjust the net profit and other comprehensive income of the

investee based on the fair value of the investee’s identifiable net assets at the time when the investment is obtained

and in accordance with the company’s accounting policies and accounting period before confirmation.

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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(except where the assets invested or sold constitute a business). If

the unrealized internal transaction losses with the investee are assets impairment losses they will be fully

recognized.In addition to assuming obligations for additional losses the company’s net losses to joint ventures or associates

are limited to the book value of long-term equity investments and other long-term equity that actually constitutes

net investment in joint ventures or associates write down to zero. If a joint venture or an associated enterprise

realizes net profits in the future the company resumes recognizing its share of profits after the share of profits

makes up for the share of unrecognized 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.Long-term equity investment accounted for by equity method

For long-term equity investments accounted for by partial disposition equity method the remaining equity is still

accounted for by the equity method the other comprehensive income recognized by the original equity method

shall be carried forward in a corresponding proportion on the same basis as the direct disposal of related assets or

liabilities by the investee other changes in owner's equity are carried forward to the current profit and loss on a

pro rata basis.If the joint control or significant influence on the investee is lost due to the disposal of equity investment for the

other comprehensive income recognized by the original equity investment due to the adoption of the equity

method use the same basis as the investee to directly dispose of related assets or liabilities for accounting

treatment when terminating the adoption of the equity method the same basis as the direct disposal of related

assets or liabilities by the investee is used for accounting treatment all other changes in owner's equity are

transferred to the current profit and loss when terminating the adoption of the equity method.If the control of the investee is lost due to the disposal of part of the equity investment and the remaining equity

can exercise joint control or exert significant influence on the investee when preparing individual financial

statements the equity method shall be used for accounting and the remaining equity shall be deemed to be

accounted for by the equity method for adjustment since the acquisition and the other comprehensive income

recognized before obtaining the control of the investee is carried forward on the same basis as the direct disposal

of related assets or liabilities by the investee in proportion changes in other owners’ equity confirmed by the

equity method are carried forward to the current profit and loss on a pro rata basis; if the remaining equity cannot

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exercise joint control or exert significant influence on the investee it shall be recognized as a financial asset and

the difference between its fair value and book value on the day when the control is lost is included in the current

profit and loss and all other comprehensive income and other owner's equity changes recognized before obtaining

the control of the investee are carried forward.If the equity investment in a subsidiary is disposed of through multiple transactions until it loses control and it is

a package transaction each transaction shall be accounted for as a transaction that disposes of the equity

investment of the subsidiary and loses control. The difference between the cost of each disposal before the loss of

control and the book value of the long-term equity investment corresponding to the equity being disposed of is

first recognized as other comprehensive income in individual financial statements and then transferred to the

current profit and loss of the loss of control when the control is lost. If it is not a package transaction each

transaction shall be accounted for separately.

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).Subsequent expenditures related to investment real estate are included in the cost of investment real estate when it

is probable that the related economic benefits will flow and the cost can be measured; otherwise charged to

current gain/loss as incurred.Current investment real estate of the Company are measured by cost. As for the investment real estate-rental

building measured by cost the depreciation policy is same as the fixed assets of the Company the land use right

for rental has the same amortization policy as intangible assets.

24. Fix assets

(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:

* It is probable that the economic benefits associated with the assets will flow into the Company;

* The cost of the assets can be measured reliably.

90深圳市深粮控股股份有限公司2022年半年度报告全文

Fixed assets are initially measured at cost (and considering the impact of expected abandonment cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related economic

benefits are likely to flow in and their costs can be reliably measured; the book value of the replaced part is

derecognized; all other subsequent expenditures are included in the current profit and loss when incurred.

(2)Depreciation methods

Years of Yearly depreciation

Category Method Scrap value rate

depreciation rate

House and buildings

Production buildings Straight-line depreciation 20-35 5.00 2.71-4.75

Non-production

Straight-line depreciation 20-40 5.00 2.38-4.75

buildings

Temporary dormitory

Straight-line depreciation 5-15 5.00 6.33-19.00

and simple room etc.Gas storage bin Straight-line depreciation 20 5.00 4.75

Silo Straight-line depreciation 50 5.00 1.90

Wharf and supporting

Straight-line depreciation 50 5.00 1.90

facilities

Machinery equipment

Other machinery

Straight-line depreciation 10-20 5.00 4.75-9.50

equipment

Warehouse

transmission Straight-line depreciation 20 5.00 4.75

equipment

Transport equipment Straight-line depreciation 3-10 5.00 9.50-31.67

Electronic equipment

Straight-line depreciation 2-10 5.00 9.50-47.50

and others

Estimated the net salvage rate to determine the depreciation rate. For fixed assets with provision for impairment the amount of

depreciation shall be determined in future periods according to the book value after deducting the provision for impairment and based

on the usable life. 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.

(3) Recognition measurement and depreciation of fixed assets held under finance lease

25. Construction in process

Construction in process is measured at the actual cost incurred. The actual cost includes construction cost

installation cost borrowing costs that meet the capitalization conditions and other necessary expenditures

incurred before the construction in progress reaches its intended usable state. When the construction in process

reaches the intended usable state it will be transferred to fixed assets and depreciation will be accrued from the

91深圳市深粮控股股份有限公司2022年半年度报告全文

next month.

26. Borrowing expenses

1.1 Recognition of the borrowing expenses capitalization

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.

1.2 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.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.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.

1.3 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.

1.4 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

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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.During the capitalization period the exchange difference of the principal and interest of the specialized foreign

currency borrowing is capitalized and included in the cost of the assets that meet the capitalization conditions.Exchange differences arising from the principal and interest of foreign currency borrowings other than specialized

foreign currency borrowing are included in the current profits and losses.

27. Biological assets

(1) The Company's biological assets are productive biological assets which are classified into productive

biological assets consumptive biological assets and biological assets for commonweal according to the purpose of

holding and the way in which economic benefits are realized.

(2) Biological assets are initially measured at cost.

(3) The necessary expenditures incurred by productive biological assets before reaching the intended production

and operation purposes constitute the cost of the productive biological assets. Subsequent expenditures incurred

after achieving the intended production purposes shall be included in the current profit and loss.

(4) The necessary expenditures for consumptive biological assets before closure constitute the cost of

consumptive biological assets and subsequent expenditures incurred after closure are included in the current

profit and loss. The consumptive biological assets are carried at cost when harvested using the proportional

method of accumulation.

(5) 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.

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(6)Biological assets for commonweal refer to biological assets whose main purpose is protection and

environmental protection including wind-breaking and sand-fixing forests soil and water conservation forests

and water conservation forests.The cost of self-constructed biological assets for commonweal shall be determined in accordance with the

necessary expenditures such as cost of planting tending fees forest protection fees forest culture and

management facility fees improved seed experiment fees survey design fees and indirect costs that should be

apportioned before the closure including borrowing costs that meet the conditions for capitalization.Biological assets for commonweal are subsequently measured at cost. There is no need to withdraw the asset

impairment reserve for biological assets for commonweal.

(7)The balance of the disposal consideration from the sale inventory loss death or damage of biological assets

after deducting the book value and relevant taxes shall be included in the current profit and loss.

28. Oil and gas assets

29. Right-of-use assets

30. Intangible assets

(1) Measurement use of life and impairment testing

1.1 Measurement

(1)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.

(2)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.

1.2 Estimation of the service life of intangible assets with limited service life

Amortization

Item Predicted useful life

method Basis

Amortized the actual rest of life after certificate of Straight-line Certificate of land use

Land use right

land use right obtained method right

Forest tree use Service life arranged Straight-line Protocol agreement

94深圳市深粮控股股份有限公司2022年半年度报告全文

Amortization

Item Predicted useful life

method Basis

right method

Trademark use Straight-line Actual situation of the

10-year

right method Company

Shop management Straight-line Protocol agreement

Service life arranged

right method

Straight-line Protocol agreement

Software use right 5-8 years

method

Straight-line Actual situation of the

Patents and others 20-year

method Company

1.3 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

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 right-of-use assets intangible assets with certain service life and oil & gas assets 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.For goodwill formed by business combination intangible assets with uncertain service life and intangible assets

that have not yet reached the usable state regardless of whether there are signs of impairment impairment test

shall be carried out 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.Relevant asset group or assets portfolio is the asset group or combination of assets group that can benefit from the

synergies of the enterprise merger.

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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. Then conduct an impairment test on the asset

group or asset group portfolios containing goodwill and compare their book value with the recoverable amount. If

the recoverable amount is lower than the book value the amount of impairment loss first deducts the book value

of the goodwill allocated to the asset group or asset group portfolio and then deducts the book value of the other

assets in proportion according to the proportion of the book value of the other assets other than goodwill in the

asset group or asset group portfolio.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 liability

The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between

performance obligations and customer payments. The Company's obligation to transfer goods or provide services

to customers for consideration received or receivable from customers is listed as contract liabilities. Contract

assets and contract liabilities under the same contract are presented in net amount.

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.The employee welfare expenses incurred shall be recorded into the current gain/loss or the cost of relevant assets

according to the actual amount when actually incurred and the non-monetary welfare shall be measured at fair

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value.

(2)Accounting treatment for post employment benefits

Defined contribution plan

The Company pays basic endowment insurance and unemployment insurance for employees according to the

relevant regulations of the local government. In the accounting period in which employees provide services for the

Company the amount to be paid is calculated according to the local payment base and proportion and is

recognized as a liability and included in current profit and loss or related asset cost. In addition the Company also

participates in the enterprise annuity plan/supplementary pension insurance fund approved by the relevant state

departments. The Company pays a certain percentage of the total wages of employees to the annuity plan/local

social insurance agency and the corresponding expenditures are included in the current profit and loss or the cost

of related asset.Defined benefit plan

The Company assigns the benefit obligation arising from the defined benefit plan to the period during which the

employee provides service according to the formula determined by the expected accumulated benefit unit method

and includes it in the current profit and loss or related asset cost.The deficit or surplus formed by the present value of the defined benefit plan obligation minus the fair value of the

defined benefit plan asset is recognized as a net benefit or net asset of the defined benefit plan. If there is a surplus

in the defined benefit plan the Company measures the net assets of the defined benefit plan by the lower of the

surplus and the asset limit of the defined benefit plan.All defined benefit plan obligations including obligations expected to be paid within twelve months of the end of

the annual reporting period in which the employee provides services are discounted based on the market return of

the national debt matching with the defined benefit plan obligations deadline and currency or the high quality

corporation bonds in an active market on the balance sheet date.The service cost generated by the defined benefit plan and the net liabilities or the net interest of the net assets of

the defined benefit plan are included in the current profit and loss or the related assets cost; the changes generated

by the remeasurement of net liabilities or net assets of the defined benefit plan are included in other

comprehensive income and will not be transferred back to profit or loss in the subsequent accounting period

when the original defined benefit plan is terminated the part that was originally included in other comprehensive

income will be carried forward to undistributed profit within the scope of equity.When settling the defined benefit plan the settlement gain or loss is confirmed by the difference between the

present value of the defined benefit plan obligation and the settlement price determined on the settlement date.

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(3)Accounting treatment for dismissal benefit

If the Company provides dismissal benefits to employees the employee compensation liabilities arising from

dismissal benefits shall be recognized on the earlier date of the following two and shall be included in the current

profit and loss: When the company cannot unilaterally withdraw the dismissal benefits provided by the dismissal

plan or downsizing proposal; When the company confirms the costs or expenses related to the reorganization

involving the payment of dismissal benefits.

(4)Accounting treatment for other long term staff benefits

35. Lease liability

36. Accrual liability

The Company will recognize the obligations related to contingencies as expected liabilities when they meet the

following conditions:

(1)The responsibility is a current responsibility undertaken by the Company;

(2)Fulfilling of the responsibility may lead to financial benefit outflow;

(3)The responsibility can be measured reliably for its value.

Accrual liabilities 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.Where there is a continuous range of required expenditures and the probability of occurrence of various results

within this range is the same the best estimate is determined according to the median value in the range; in other

cases the best estimate shall be treated as follows:

* If a contingency involves a single item it shall be determined according to the amount most likely to occur.* If a contingency involves multiple items it shall be determined in accordance with various possible outcomes

and related probability calculation.If all or part of the expenditure required to pay off the estimated liabilities is expected to be compensated by a

third party the compensation amount shall be separately recognized as an asset when it is basically certain that it

can be received and the recognized compensation amount shall not exceed the book value of the estimated

liability.

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The Company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusive

evidence that the book value does not reflect the current best estimate the book value will be adjusted according

to the current best estimate.

37.Share-based payment

38. Other financial instrument of preferred stocks and perpetual bond

39. Revenue

Accounting policy used for revenue recognition and measurement

1.1 Accounting policy used for 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. (Tips: for the interval between the transfer of control and the payment of the price by the customer does

not exceed one year the enterprise may disregard the financing component thereof. Enterprise should make

disclosure according to the actual situation )

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

99深圳市深粮控股股份有限公司2022年半年度报告全文

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.

1.2 Specific principle

(1) Revenue from sales of goods: the sales revenue is recognized after the goods sold domestically have been

delivered and the relevant terms agreed in the contract are met; for export sales the realization of sales revenue is

confirmed after the goods have been dispatched and declared in compliance with the relevant terms as agreed in

the contract. For export sales the sales revenue is recognized after the goods have been sent and declared and the

relevant terms agreed in the contract are met.

(2) Revenue from provision of labor services: For the dynamic reserve of grain and oil and its rotation services

provided by the Company to the Shenzhen Municipal Government the revenue is recognized when relevant labor

services occur the revenue from grain and oil reserve services is calculated and confirmed monthly based on the

actual amount of grain and oil reserves and the reserve price stipulated in the "Shenzhen Municipal Government

100深圳市深粮控股股份有限公司2022年半年度报告全文

Grain Reserve Expenses Contract Operation Regulations" and the "Shenzhen Municipal Government Edible

Vegetable Oil Government Reserve Expenses Contract Operation Regulations".

(3) Other income:

1)-The amount of royalty revenue is calculated and determined in accordance with the charging time and method

agreed in the relevant contract or agreement;

2)- Income from real estate terminal warehouse and other property leasing and terminal docking business is

calculated and recognized as the property rental income warehousing and logistics income.Differences in accounting policies for revenue recognition due to the different operating models for the same types of business

40. Government subsidy

1.1 Types

Governments subsidy 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 subsidy 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.Specific criteria for classifying the government subsidy as asset-related by the Company are: government subsidy

acquired for the acquisition and construction or other formation of long-term assets

Specific criteria for classifying the government subsidy as income-related by the Company are: government

subsidy obtained by the Company other than those related to assets.

1.2 Recognition time point

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

subsidy. After that government subsidy shall recognize while actually received.Government subsidy in the form of monetary assets are stated at the amount received or receivable.Government subsidy 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 subsidy measured at nominal amount is

recognized immediately in profit or loss for the current period.

1.3 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

101深圳市深粮控股股份有限公司2022年半年度报告全文

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 subsidy

Government subsidy related to assets is used to offset the book value of related assets or be recognized as deferred

income. If it is confirmed as deferred income it shall be included in the current profit and loss in a reasonable and

systematic way by stages within the useful life of the relevant assets (those related to the Company’s daily

activities are included in other income; those unrelated to the Company’s daily activities are included in the non-

operating income);

Government subsidy related to income that is used to compensate the Company's related costs or losses in

subsequent periods is recognized as deferred income and is included in the current profit and loss during the

period when the related costs or losses are recognized (those related to the Company’s daily activities are included

in other income; those unrelated to the Company’s daily activities are included in the non-operating income) or

used to offset related costs or losses; those used to compensate the Company’s related costs expenses or losses

are directly included in the current profit and loss (those related to the Company’s daily activities are included in

other income; those unrelated to the Company’s daily activities are included in the non-operating income) or used

to offset related costs or losses.The policy-related preferential loan interest discounts obtained by the Company shall be accounted for separately

in the following two situations:

(1)The finance allocates interest discount funds to the lending bank. If the lending bank provides loans to the

Company at a policy-based preferential interest rate the Company will use the actually received loan amount as

the entry value of the loan and calculate related borrowing costs according to the loan principal and the policy-

based preferential interest rate.

(2) If the finance directly allocates interest discount funds to the Company the Company will write down the

relevant borrowing costs with the corresponding interest discount.

41. Deferred income tax assets and deferred income tax liabilities

Income tax includes current income tax and deferred income tax. Except for income tax arising from business

mergers and transactions or events that are directly included in owner's equity (including other comprehensive

income) the Company include current income tax and deferred income tax in current profit and loss.Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the

difference (temporary difference) between the tax base of assets and liabilities and their book value.

102深圳市深粮控股股份有限公司2022年半年度报告全文

Deductible temporary differences recognized by deferred income tax assets is limited to the taxable income that is

likely to be obtained in the future to deduct deductible temporary differences. For the deductible losses and tax

deductions that can be carried forward for subsequent years are limited to the future taxable income that is likely

to be obtained to deduct deductible and tax deductions.For taxable temporary differences except for special circumstances deferred income tax liabilities are recognized.Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities include:

* Initial recognition of goodwill;

* Transactions or events that neither are a business combination nor affect accounting profits and taxable income

(or deductible losses) when occur.For taxable temporary differences related to investments in subsidiaries associates and joint ventures deferred

income tax liabilities are recognized unless the Company can control the timing of the reversal of the temporary

differences and the temporary differences are not likely to be reversed in the foreseeable future. For deductible

temporary differences related to investments in subsidiaries associates and joint ventures when the temporary

differences are likely to be reversed in the foreseeable future and are likely to be used to deduct the taxable

income of deductible temporary differences in the future recognize deferred income tax assets.On the balance sheet date deferred income tax assets and deferred income tax liabilities are measured at the

applicable tax rate during the period when the relevant assets are expected to be recovered or the relevant

liabilities are expected to be paid off in accordance with the provisions of the tax law.On the balance sheet date the Company reviews the book value of deferred income tax assets. If it is probable that

sufficient taxable income cannot be obtained in the future to offset the benefits of deferred income tax assets the

book value of the deferred income tax assets shall be written down. When it is possible to obtain sufficient taxable

income the write-down amount shall be reversed.When there is a statutory right to settle on a net basis and an intention to settle on a net basis or acquire assets and

pay off liabilities at the same time the current income tax assets and current income tax liabilities are presented at

the net amount after offsetting.On the balance sheet date deferred income tax assets and deferred income tax liabilities shall be listed as the net

amount after offset when the following conditions are met at the same time:

* The tax subject has the statutory right to settle current income tax assets and current income tax liabilities on a

net basis;

*Income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax

administration department on the same taxation subject or related to different taxation subjects however in the

period during which each important deferred income tax asset and liability are reversed in the future the taxpayer

103深圳市深粮控股股份有限公司2022年半年度报告全文

involved intends to settle the current income tax assets and liabilities on a net basis or obtain assets and settle

liabilities at the same time.

42. Lease

(1)Accounting treatment for operating lease

1.Right-of-use assets

On the commencement date of the lease term the Company recognizes the right-of-use assets for leases other than

short-term leases and low-value asset leases. The right-of-use assets shall be initially measured at cost. The cost

includes:

* The initial measurement amount of lease liabilities;

*Where the lease payments paid on or before the commencement date of the lease term have a lease incentive the

amount of the lease incentive already enjoyed shall be deducted;

*Initial direct costs incurred by the Company;

*Costs expected to be incurred by the Company to dismantle and remove the leased assets restore the sites where

the leased assets locate or restore the leased assets to the state agreed upon in the lease terms excluding costs

incurred for the production of inventory.The Company shall subsequently use the straight-line method to calculate the depreciation of the right-of-use

assets. Where ownership of the leased asset can be reasonably determined at the end of the lease term the

Company shall calculate the depreciation during the remaining useful life of the leased asset; Otherwise the

depreciation of the leased asset is calculated during the period which is shorter between the lease term and the

remaining useful life of the leased asset.The Company determines whether the right-of-use asset impairment has occurred in accordance with the

principles described in the Notes III- "(20). Impairment of Long-term Assets" and makes accounting treatment for

the identified impairment loss.

2.Lease liability

On the commencement date of the lease term the Company recognizes the lease liabilities for leases other than

short-term leases and low-value asset leases. Lease liabilities are initially measured at the present value of

outstanding lease payments. The lease payments include:

*Where there is a lease incentive in the fixed payments (including the substantive fixed payments) deduct the

lease incentive;

*Variable lease payments depending on the index or ratio;

*The payments estimated to be paid according to the guaranteed residual value provided by the company;

*The executive price of the call option provided that the company reasonably determines that the option will be

104深圳市深粮控股股份有限公司2022年半年度报告全文

exercised;

*The payments payable to exercise the termination of lease option provided that the lease term reflects that the

company shall exercise the termination of lease option.The Company uses the interest rate implicit in lease as the discount rate but if the interest rate implicit in lease

cannot be reasonably determined the Company's incremental borrowing rate shall be used as the discount rate.The Company calculates the interest expense of the lease liability in each period of the lease term at a fixed

periodic rate and records it into the current profits and losses or the cost of underlying asset.The variable lease payments not included in the measurement of lease liabilities are booked into the profits and

losses of the current period or the cost of related assets when actually incurred.After the commencement date of the lease term if any of the following circumstances occurs the Company shall

re-measure the lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-

use assets has been reduced to zero but the lease liabilities still need to be further reduced the difference shall be

recorded into the profits and losses of the current period.*If the evaluation results of the call option the lease renewal option or the termination option changes or the

actual exercise of the said option is inconsistent with the original evaluation results the Company shall remeasure

the lease liability at the present value calculated by the changed lease payment and the revised discount rate;

*In the event of a change in the substantive fixed payment a change in the amount expected to be payable for the

guaranteed residual value or a change in the index or ratio used to determine the lease payment the Company

shall remeasure the lease liability according to the present value calculated by the changed lease payment and the

original discount rate. However where changes in lease payments result from changes in floating interest rates

the present value is calculated by using the revised discount rate.

(3) Short-term leases and low-value asset leases

The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term leases and low-

value asset leases and records the relevant lease payments into the current profits and losses or related asset costs

in accordance with the straight-line method for each period of the lease term. A short-term lease is a lease not

exceeding 12 months and excluding the call option on the commencement date of the lease term. The low-value

asset lease refers to a lease with a lower value when a single leased asset is a new asset. Where the company

subleases or expects to sublease the leased asset the original lease is not a low-value asset lease.

4. Lease change

If the lease changes and meets the following conditions at the same time the Company will treat the lease change

as a separate lease for accounting treatment:

105深圳市深粮控股股份有限公司2022年半年度报告全文

*The lease change expands the lease scope by increasing one or more right of use of the leased assets;

*The increased consideration and the separate price for the extension portion of the lease shall be equivalent to the

amount adjusted according to the contract.If the lease change is not regarded as a separate lease for accounting treatment the company shall on the effective

date of the lease change reapportion the consideration of the contract after the change redetermine the lease term

and remeasure the lease liabilities according to the present value calculated by the changed lease payments and the

revised discount rate.If the lease change results in the narrowing of the lease scope or the shortening of the lease term the Company

shall adjust the book value of the right-of-use assets accordingly and record the profits or losses related to partial

or complete termination of lease into the profits and losses of the current period. The Company shall adjust the

book value of the right-of-use assets accordingly if the lease liabilities are remeasured due to other lease changes.

5. Rent concessions related to COVID-19

Where the simplified method of rent concessions related to COVID-19 is adopted the Company shall not

assess whether there is a lease change and shall continue to calculate the interest expense of the lease liability at

the same discount rate as before the concessions and include it in the current profit and loss and continue to make

an depreciation for right-of-use assets in the same way as before the concession. In the event of rent reduction or

exemption the Company shall treat the reduced rent as the variable lease payment amount and offset the related

asset cost or expenses by using the discounted amount at the undiscounted rate or the discounted rate before the

concession when the original rent payment obligation is relieved by reaching a concession agreement and adjust

the lease liabilities accordingly; where the rent payment is delayed the Company shall offset the lease liabilities

recognized in the previous period when the actual payment is made.For short-term leases and low-value asset leases the Company shall continue to include the original contract rent

in the related asset cost or expenses in the same way as before the concession. In the event of rent reduction or

exemption the Company shall treat the reduced rent as the variable lease payment and offset the relevant asset

cost or expenses during the reduction and exemption period; where the rent payment is delayed the Company

shall recognize the rent payable as a payable during the original payment period and offset the payable

recognized in the previous period when the actual payment is made.

106深圳市深粮控股股份有限公司2022年半年度报告全文

(2)Accounting treatment for financing lease

43. Other important accounting policy and estimation

44. Changes of important accounting policy and estimation

(1)Changes of important accounting policies

□ Applicable √ Not applicable

(2) Changes of important accounting estimate

□ Applicable √ Not applicable

45. Other

N/A

VI. Taxes

1. Type of tax and rate for main applicable tax

Taxes Basis Rate

The output tax is calculated on the basis

of the sales of goods and the taxable

service income calculated according to

VAT the tax law. After deducting the input tax 13.00% 9.00% 6.00% 5.00% 3.00%

amount that is allowed to be deducted in

the current period the difference part is

the value-added tax payable.Calculated according to the actual value-

Urban maintenance and construction tax 7.00% 5.00%

added tax and consumption tax

Enterprise income tax Calculated according to taxable income 25.00% 20.00% 15.00%

Calculated according to the actual value-

Educational surtax 3.00%

added tax and consumption tax

Calculated according to the actual value-

Local education surcharge 2.00%

added tax and consumption tax

Price-based resource tax 1.2 percent of

the remaining value after deducting 20%

Property tax of the original value of the property; 12 1.20% 12.00%

percent of the rental income if levy by

rents.When the property right of the real

Deed tax 3.00%-5.00%

property is transferred the contract price

107深圳市深粮控股股份有限公司2022年半年度报告全文

shall be paid to the owner of the property

right in one lump sum

Rate of income tax for different taxpaying body:

Taxpaying body Rate of income tax

Shenzhen Cereals Holdings Co. Ltd. 25.00%

Shenzhen Cereals Group Co. Ltd (hereinafter referred to as

25.00% Some businesses are tax-free

"SZCG")

Shenzhen Hualian Grain and Oil Trading Co. Ltd. (hereinafter

25.00%

referred to as "Hualian Cereals and Oil")

Dongguan Hualian Grain & Oil Trade Co. Ltd. (hereinafter

25.00%

referred to as "Dongguan Hualian ")

Shenzhen Shenliang Hongjun Catering Management Co. Ltd.

25.00%

(hereinafter referred to as "Shenliang Hongjun ")Shenzhen Flour Co. Ltd(hereinafter referred to as “ShenzhenTax-freeFlour”)

Shenliang Quality Inspection Co. Ltd.(hereinafter referred to

25.00%

as"Quality Inspection")

Hainan Shenliang Oil & Food Co. Ltd. (hereinafter referred to

20.00%

as"Hainan Oil & Food")

Shenzhen Shenliang Doximi Business Co. Ltd. (hereinafter

25.00%

referred to as"Doximi ")

Shenzhen Shenliang Big Kitchen Food Supply Chain Co.

25.00%

Ltd(hereinafter referred to as"Big Kitchen")

Shenzhen Shenliang Storage (Yingkou) Co. Ltd(hereinafter

25.00%

referred to as"Yingkou Storage")

Shenzhen Shenliang Cold Chain Logistics Co. Ltd.(hereinafter

15.00%

referred to as"Cold Chain Logistics")

Shenzhen Shenliang Property Development Co. Ltd.

25.00%

(hereinafter referred to as"Shenliang Property")

Shenzhen Shenliang Property Management Co. Ltd.

20.00%

(hereinafter referred to as"Shenliang Property")

Dongguan Shenliang Logistics Co. Ltd.(hereinafter referred to

25.00%

as Dongguan Logistics)

Dongguan International Food Industrial Park Development Co.

25.00%

Ltd.(hereinafter referred to as"International Food")

Dongguan Shenliang Oil & Food Trade Co. Ltd.(hereinafter

25.00%

referred to as"Dongguan Oil & Food")

Shuangyashan Shenliang Cereals Base Co. Ltd. (hereinafter

25.00%

referred to as"Shuangyashan ")

Shenzhen Shenbao Huacheng Technology Co. Ltd.

15.00%

(hereinafter referred to as Shenbao Huacheng )

Wuyuan County Jufangyong Tea Co. Ltd.(hereinafter referred

15.00%

to as Wuyuan Jufangyong)

108深圳市深粮控股股份有限公司2022年半年度报告全文

Shenzhen Shenshenbao Investment Co. Ltd(hereinafter

25.00%

referred to as"Shenbao Investment ")

Shenzhen Shenshenbao Tea Culture Commercial Management

Co. Ltd.(hereinafter referred to as"Shenbao Tea Culture") 25.00%

Hangzhou Ju Fang Yong Holding Co. Ltd(hereinafter referred

25.00%

to as"Ju Fang Yong Holding")

Hangzhou Ju Fang Yong Trading Co. Ltd. (hereinafter referred

25.00%

to as"Ju Fang Yong Trading ")

Hangzhou Fuhaitang Catering Management Chain Co. Ltd.

25.00%

(hereinafter referred to as"Fuhaitang Catering")

Hangzhou Fuhaitang Tea Ecological Technology Co.

25.00%

Ltd.(hereinafter referred to as"Fuhaitang Ecological")

Mount Wuyi Shenbao Rock Tea Co. Ltd.(hereinafter referred

25.00%

to as"Shenbao Rock Tea")

Yunnan Shenbao Pu’er Tea Supply Chain Management Co.

25.00%

Ltd.(hereinafter referred to as"Pu’er Tea Supply Chain")

Shenzhen Shenliang Food Co. Ltd.(hereinafter referred to

25.00%

as“Shenzhen Shenliang Food ”)

Yunnan Pu’er Tea Trading Center Co. Ltd.(hereinafter referred

25.00%

to as"Pu’er Tea Trading Center")

Huizhou Shenliang Food Co. Ltd.(hereinafter referred to as

25.00%

Shenliang Food )

Huizhou Shenbao Technology Co. Ltd.(hereinafter referred to

25.00%

as"Huizhou Shenbao ")

Zhenping Market Operation Tech. Co. Ltd.(hereinafter

25.00%

referred to as"Zhenping Market ")

Shenzhen Shenbao Industrial & Trading Co. Ltd(hereinafter

25.00%

referred to as"Shenbao Industrial & Trading")

Wuhan Jiacheng Biotechnology Co. Ltd.(hereinafter referred

15.00%

to as Wuhan Jiacheng)

Hubei Jiacheng Biotechnology Co. Ltd. .(hereinafter referred

25.00%

to as Hubei Jiacheng)

Wuhan Hongqu Health Biology Co. Ltd(hereinafter referred to

25.00%

as“Wuhan Hongqu”)

Macheng Jintian Camellia Oil Co. Ltd.(hereinafter referred to

25.00%

as“Macheng Jintian”)

Shenliang Hongli Grain & Oil (Shenzhen) Co. Ltd.(hereinafter

25.00%

referred to as“Hongli Grain & Oil”)

2. Tax preferential

1. VAT preference and approvalAccording to the “Notice of the Ministry of Finance and the State Administration of Taxation on the Issues

109深圳市深粮控股股份有限公司2022年半年度报告全文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 StateAdministration of Taxation on Relevant Management Matters After Clarifying the Cancellation of the Approvalof Some VAT Preferential Policies” (SAT Announcement 2015 No. 38) the approval for exemption from VAT

and the involved tax review and approval procedures for the state-owned grain enterprises that undertake grain

collection and storage tasks other grain enterprises that operate tax-free projects and enterprises that have edible

vegetable oil sales business for government reserves are 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 June 30 2022 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 preferencesAccording 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 June 30 2022.

3. Enterprise income tax

(1) On May 27 2021 the general administration of Taxation Ministry of Finance issued the Notice on the

Extension of Preferential Policies of Enterprise Income Tax of Qianhai Shenzhen-Hong Kong Modern Service

Industry Cooperation Zone in Shenzhen the enterprise income tax of qualified enterprises located in Qianhai

Shenzhen-Hong Kong Modern Service Industry Cooperation Zone is levied at the rate of 15.00% and the Notice

to be implemented from January 1 2021 to December 31 2025. The Company's subsidiary cold chain logistics is

registered in Shenzhen Qianhai Cooperation Zone which is eligible for preferential tax conditions. According to

relevant policies of the cooperation zone its income tax will enjoy a preferential tax of 15.00%

110深圳市深粮控股股份有限公司2022年半年度报告全文

(2) On December 23 2021 Shenbao Huacheng a subsidiary of the Company obtained the High-tech Enterprise

Certificate (Certificate No.: GR202144205394) jointly issued by the Shenzhen Science and Technology Bureau

the Shenzhen Finance Bureau and the Shenzhen Tax Service State Taxation Administration which is valid for

three years. According to the relevant preferential policies of the state for high-tech enterprises the qualified high-

tech enterprises will pay corporate income tax at a reduced income tax rate of 15.00% within three years from the

year of identification. Shenbao Huacheng will enjoy the preferential tax policy from 2021 to 2024.

(3) On November 3 2021 Wuyuan Jufangyong a subsidiary of the Company obtained the High-tech Enterprise

Certificate (Certificate No.: GR202136000731) jointly issued by the Science and Technology Department of

Jiangxi Province the Finance Department of Jiangxi Province and the Jiangxi Provincial Tax Service State

Taxation Administration which is valid for three years. According to the relevant preferential policies of the state

for high-tech enterprises qualified high-tech enterprises will pay corporate income tax at a reduced income tax

rate of 15.00% within three years from the year of identification. Wuyuan Jufangyong will enjoy the preferential

tax policy from 2021 to 2024.

(4) On November 15 2019 Wuhan Jiacheng a subsidiary of the Company obtained the High-tech Enterprise

Certificate (Certificate No.: GR201942000977) jointly issued by the Department of Science and Technology of

Hubei Province the Hubei Provincial Department of Finance of Hubei Province and the Hubei Provincial Tax

Service State Taxation Administration which is valid for three years. According to the relevant preferential

policies of the state for high-tech enterprises qualified high-tech enterprises will pay corporate income tax at a

reduced income tax rate of 15.00% within three years from the year of identification. Wuhan Jiacheng enjoys the

preferential tax policy from 2019 to 2022.

(5) According to the Notice of the Ministry of Finance and the State Taxation Administration on the Treatment of

Corporate Income Tax Treatment of Fiscal Funds for Special Purposes (CS [2009] No. 87) the governmental

service incomes obtained by SZCG the Company’s subsidiary and its subordinate companies by carrying out

government grain reserves business are fiscal funds for special purposes those that meet the requirements can be

regarded as non-taxable incomes and deducted from the total income when calculating the taxable income.Expenses arising from the use of the above non-taxable income for expenditure shall not be deducted from the

calculation of taxable income; for assets formed from expenditure the calculated depreciation and amortization

shall not be deducted from the calculation of taxable income.

(6) Shenzhen Flour a subsidiary of the Company is a flour primary processing enterprise according to 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

111深圳市深粮控股股份有限公司2022年半年度报告全文

processing is exempt from income tax.

(7) According to Article II of the "Notice of the State Taxation Administration and Ministry of Finance on the

Implementation of Inclusive Tax Relief Policies for Small and Micro Enterprises" (CS[2029] No. 13) the portion

of the annual taxable income of small low-profit enterprises that does not exceed 1 million yuan will be included

in the taxable income by 25% and the corporate income tax will be paid at a tax rate of 20%. The portion of the

annual taxable income of small low-profit enterprises exceeding 1 million yuan but not exceeding 3 million yuan

will be included in the taxable income by 50% and the corporate income tax will be paid at a tax rate of 20%. On

March 31 2021 the Ministry of Finance and the State Taxation Administration issued Announcement No. 12 of

2021 for the part of the annual taxable income of small and low-profit enterprises not exceeding one million yuan

on the basis of the preferential policies stipulated in Article 2 of the Notice of the Ministry of Finance and the

State Taxation Administration on Implementing Inclusive Tax Reduction and Exemption Policies for Small and

Micro Enterprises (CS[2019] No. 13) the corporate income tax shall be halved; Hainan Cereals and Oils and

Shenliang Property as the Company’s subsidiaries are small and low-profit enterprises and are eligible for tax

preference.

3.Other

N/A

VII. Annotation to main items of consolidated financial statements

1. Monetary funds

Unit: CNY/RMB

Item Ending balance Opening balance

Cash on hand 67892.44 29370.19

Cash in bank 70821643.50 49173812.84

Other monetary fund 1571145.88 1206740.62

Total 72460681.82 50409923.65

The total amount of

money that has restrictions on use due to 1000000.00 1039843.45

mortgage pledge or freezing

Other explanation

2. Tradable financial assets

Unit: CNY/RMB

Item Ending balance Opening balance

Financial assets measured by fair value

and with variation reckoned into current 72348385.01 211060770.50

gains/losses

112深圳市深粮控股股份有限公司2022年半年度报告全文

Including:

Equity investment instrument 1142988.73 921099.27

Structured financial products 71205396.28 210139671.23

Including:

Total 72348385.01 211060770.50

Other explanation:

3. Derivative financial assets

Unit: CNY/RMB

Item Ending balance Opening balance

Other explanation

4. Note receivable

(1) Category

Unit: CNY/RMB

Item Ending balance Opening balance

Bank acceptance bill 97750.00 687242.00

Total 97750.00 687242.00

Unit: CNY/RMB

Ending balance Opening balance

Bad debt

Book balance Book balance Bad debt provision

Category provision Book Book

Amoun Amoun Accrua value Amoun Accrual value

Ratio Ratio Amount

t t l ratio t ratio

Including:

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:

Unit: CNY/RMB

Amount changed in the period

Opening

Category Collected or Ending balance

balance Accrual Written-off Other

reversal

Including major amount bad debt provision that collected or reversal in the period:

□ Applicable √Not applicable

113深圳市深粮控股股份有限公司2022年半年度报告全文

(3) Note receivable that pledged at period-end

Unit: CNY/RMB

Item Amount pledged at period-end

(4) Notes endorsement or discount and undue on balance sheet date

Unit: CNY/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

Unit: CNY/RMB

Item Amount transfer to account receivable at period-end

Other explanation

(6) Note receivable actually written-off in the period

Unit: CNY/RMB

Item Amount written-off

Including important note receivable that written-off:

Unit: CNY/RMB

Amount written- Procedure of Resulted by related

Enterprise Nature Written-off causes

off written-off transaction (Y/N)

Explanation on note receivable written-off:

5. Account receivable

(1) Category

Unit: CNY/RMB

Ending balance Opening balance

Bad debt

Book balance Book balance Bad debt provision

Category provision Book Book

Amoun Amoun Accrua value Amoun Amoun Accrual value

Ratio Ratio

t t l ratio t t ratio

Account receivable

with bad debt 93902 34.65 92734 98.76 11685 95231 92862 236850

25.05%97.51%

provision accrual 781.96 % 278.08 % 03.88 065.86 561.98 3.88

on a single basis

Including:

Account receivable

with single 10455 10455 100.00 10455 10455 100.00

3.86%2.75%

significant amount 627.54 627.54 % 627.54 627.54 %

and withdrawal

114深圳市深粮控股股份有限公司2022年半年度报告全文

bad debt provision

on single basis

Account receivable

with single minor

amount but with 83447 30.79 82278 98.60 11685 84775 82406 236850

22.30%97.21%

bad debts provision 154.42 % 650.54 % 03.88 438.32 934.44 3.88

accrued on a single

basis

Account receivable

177121729728494

with bad debt 65.35 41517 42641 280678

9809.32.34%8093.83025.474.95%1.50%

provision accrual % 15.41 87.72 837.74

096

on portfolio

Including:

136001318514300

50.184151742641138742

Aging portfolio 2586.2 3.05% 0870.8 7108.0 37.62% 2.98%

%15.4187.72920.34

436

14193

4112715.1741127141935

Other portfolio 5917.4 37.33%

223.06%223.06917.40

271031741438017

100.009688535.75100.0097126283047

Total 2591.2 6597.7 4091.3 25.55%

%993.49%%749.70341.62

672

Bad debt provision accrual on single basis: 92734278.08 yuan

Unit: CNY/RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio Accrual causes

Guangzhou Jinhe Feed Slightly possibly taken

10455627.5410455627.54100.00%

Co. Ltd back

Shenzhen Faqun Slightly possibly taken

4582156.004582156.00100.00%

Industry Co. Ltd. back

Slightly possibly taken

Li Shaoyu 2929128.53 2929128.53 100.00%

back

Zhuhai Doumen Huabi Slightly possibly taken

2396327.142396327.14100.00%

Feed Co. Ltd. back

Chongqing Zhongxing Slightly possibly taken

2354783.302354783.30100.00%

Food Industry Co. Ltd. back

Slightly possibly taken

Hengyang Feed factory 2591566.65 2591566.65 100.00%

back

Sichuan Zhongxing Slightly possibly taken

1698103.221698103.22100.00%

Food Industry Co. Ltd. back

Shenzhen Buji

Agricultural Products Slightly possibly taken

1534512.451534512.45100.00%

Wholesale Center back

Market Xingmin

115深圳市深粮控股股份有限公司2022年半年度报告全文

Commercial Bank

Slightly possibly taken

Cao Shengyun 1429745.00 1429745.00 100.00%

back

Huaxing Feed Factory

Slightly possibly taken

Shunde District 1290274.22 1290274.22 100.00%

back

Foshan City

Slightly possibly taken

Shanghai office 1059295.90 1059295.90 100.00%

back

Shenzhen Dihuan

Investment Slightly possibly taken

1045356.501045356.50100.00%

Development back

Company

Slightly possibly taken

Other single provision 60535905.51 59367401.63 98.07%

back

Total 93902781.96 92734278.08

Bad debt provision accrual on portfolio: 4151715.41 yuan

Unit: CNY/RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio

Combination of sales

136002586.244151715.413.05%

receivables

Specific object combinations 41127223.06

Total 177129809.30 4151715.41

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

Unit: CNY/RMB

Account age Ending balance

Within one year (including 1-year) 162544194.77

1-2 years 10029455.37

2-3 years 3296082.19

Over 3 years 95162858.93

3-4 years 1651225.64

4-5 years 860649.61

Over 5 years 92650983.68

Total 271032591.26

(2) Bad debt provision accrual collected or reversal in the period

Bad debt provision accrual in the period:

116深圳市深粮控股股份有限公司2022年半年度报告全文

Unit: CNY/RMB

Amount changed in the period

Opening

Category Collected or Ending balance

balance Accrual Written-off Other

reversal

Bad debt

provision

92862561.98128283.9092734278.08

accrual on

single basis

Sales

Receivables 4264187.72 112472.31 4151715.41

Portfolio

Total 97126749.70 240756.21 96885993.49

Including major amount bad debt provision that collected or reversal in the period:

Unit: CNY/RMB

Enterprise Amount collected or reversal Collection way

(3) Account receivable actually written-off in the period

Unit: CNY/RMB

Item Amount written-off

Including major account receivable written-off:

Unit: CNY/RMB

Amount written- Procedure of Resulted by related

Enterprise Nature Written-off causes

off written-off transaction (Y/N)

Explanation on account receivable written-off:

(4) Top 5 account receivables at ending balance by arrears party

Unit: CNY/RMB

Ending balance of accounts Proportion in total receivables Bad debt preparation ending

Enterprise

receivable at ending balance balance

First 33802000.02 12.47%

Second 10455627.54 3.86% 10455627.54

Third 6415190.21 2.37%

Fourth 6398645.91 2.36%

Fifth 5631565.07 2.08% 55148.09

Total 62703028.75 23.14%

(5) Assets and liabilities resulted by account receivable transfer and continues involvement

(6) Account receivable derecognition due to financial assets transfer

6. Account receivable financing

Unit: CNY/RMB

117深圳市深粮控股股份有限公司2022年半年度报告全文

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

Unit: CNY/RMB

Ending balance Opening balance

Account age

Amount Ratio Amount Ratio

Within one year 93526177.70 98.87% 115518972.22 99.68%

1-2 years 738880.47 0.78% 193952.41 0.17%

2-3 years 164558.11 0.18% 46662.00 0.04%

Over 3 years 164708.73 0.17% 135187.98 0.11%

Total 94594325.01 115894774.61

Explanation on reasons of failure to settle on important account paid in advance with age over one year:

(2) Top 5 account paid in advance at ending balance by prepayment object

Proportion in of total prepayment

Prepaid objects Ending balance

balance at the end of period (%)

First 39315427.81 41.56

Second 33101014.04 34.99

Three 6646168.00 7.03

Fourth 5610000.00 5.93

Fifth 3220000.00 3.40

Total 87892609.85 92.91

Other explanation:

8. Other account receivable

Unit: CNY/RMB

Item Ending balance Opening balance

Other account receivable 46469468.38 32377838.35

Total 46469468.38 32377838.35

118深圳市深粮控股股份有限公司2022年半年度报告全文

(1) Interest receivable

1) Category

Unit: CNY/RMB

Item Ending balance Opening balance

2) Significant overdue interest

Unit: CNY/RMB

Whether impairment

Borrower Ending balance Overdue time Overdue causes occurs and its

judgment basis

Other explanation

3) Accrual of bad debt provision

□ Applicable √Not applicable

(2) Dividend receivable

1) Category

Unit: CNY/RMB

Item (or invested enterprise) Ending balance Opening balance

2) Important dividend receivable with account age over one year

Unit: CNY/RMB

Whether impairment

Item (or invested Reasons for not

Ending balance Account age occurs and its

enterprise) collection

judgment basis

3) Accrual of bad debt provision

□ Applicable √Not applicable

Other explanation

(3) Other account receivable

1) By nature

Unit: CNY/RMB

Nature Ending book balance Opening book balance

Margin and deposit 15821639.26 12323696.08

Other intercourse funds 130468808.14 119880221.09

Total 146290447.40 132203917.17

119深圳市深粮控股股份有限公司2022年半年度报告全文

2) Accrual of bad debt provision

Unit: CNY/RMB

Phase I Phase II Phase III

Expected credit losses for Expected credit losses for

Expected credit

Bad debt provision the entire duration the entire duration (with Total

losses over next 12

(without credit credit impairment

months

impairment occurred) occurred)

Balance on Jan. 1

3185683.4396640395.3999826078.82

2022

Balance of Jan. 1 2022

in the period

Current accrual 128700.20 128700.20

Current write-off 133800.00 133800.00

Balance on Jun. 30

3314383.6396506595.3999820979.02

2022

Change of book balance of loss provision with amount has major changes in the period

□ Applicable √Not applicable

By account age

Unit: CNY/RMB

Account age Ending balance

Within one year (including 1-year) 21424236.35

1-2 years 18927585.87

2-3 years 2090194.46

Over 3 years 103848430.72

3-4 years 1789390.49

4-5 years 1788178.30

Over 5 years 100270861.93

Total 146290447.40

3) Bad debt provision accrual collected or reversal in the period

Bad debt provision accrual in the period:

Unit: CNY/RMB

Amount changed in the period

Opening

Category Collected or Ending balance

balance Accrual Written off Other

reversal

Bad debt

provision

96640395.39133800.0096506595.39

accrual on

single basis

Bad debt

3185683.43128700.203314383.63

provision

120深圳市深粮控股股份有限公司2022年半年度报告全文

accrual on

portfolio

Total 99826078.82 128700.20 133800.00 99820979.02

Including major amount with bad debt provision reverse or collected in the period:

Unit: CNY/RMB

Enterprise Amount reversal or collected Collection way

4) Other account receivable actually written-off in the period

Unit: CNY/RMB

Item Amount written-off

Including important other account receivable written-off:

Unit: CNY/RMB

Amount written- Procedure of Resulted by related

Enterprise Nature Written-off causes

off written-off transaction (Y/N)

Explanation on other account receivable written-off:

5) Top 5 other receivables at ending balance by arrears party

Unit: CNY/RMB

Ratio in total

Bad debt

ending balance of

Enterprise Nature Ending balance Account age preparation ending

other account

balance

receivables

First Other intercourse Within 1 year

24608742.4616.82%22187644.18

funds over 5 years

Second Other intercourse

8326202.63 Over 5 years 5.69% 8326202.63

funds

Three Other intercourse

8285803.57 Over 5 years 5.66% 8285803.57

funds

Fourth Other intercourse

8257311.80 Over 5 years 5.64% 8257311.80

funds

Fifth Other intercourse

6397067.59 Over 5 years 4.37% 6397067.59

funds

Total -- 55875128.05 -- 38.18% 53454029.77

6) Other account receivables related to Government subsidy

Unit: CNY/RMB

Time amount and

Enterprise Government subsidy Ending balance Ending account age basis for collection

predicted

121深圳市深粮控股股份有限公司2022年半年度报告全文

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 companies need to comply with the disclosure requirements of the real estate industry

(1) Category

Unit: CNY/RMB

Ending balance Opening balance

Inventories fall Inventories fall

provision or provision or

contract contract

Item

Book balance performance Book value Book balance performance Book value

costs costs

impairment impairment

provision provision

Raw materials 75917421.01 14841005.00 61076416.01 71483882.02 14841005.00 56642877.02

Goods in

18235651.9618235651.9623932099.2323932099.23

process

Inventory 3616039048. 3520642093. 3463256518. 3364815013.

95396954.4598441505.32

goods 21 76 48 16

Revolving

5383668.92966891.964416776.965596700.59966891.964629808.63

material

Goods in transit 10341793.61 10341793.61 5362274.64 5362274.64

Low-value

consumables- 3619880.75 3619880.75 4367402.92 4367402.92

packaging

Consignment

processing 5999159.19 5290502.32 708656.87 6159701.53 5290502.32 869199.21

materials

3735536623.3619041269.3580158579.3460618674.

Total 116495353.73 119539904.60

65924181

(2) Inventories fall provision or contract performance costs impairment provision

Unit: CNY/RMB

Opening Current amount increased Current amount decreased

Item Ending balance

balance Accrual Other Reversal or Other

122深圳市深粮控股股份有限公司2022年半年度报告全文

write-off

Raw materials 14841005.00 14841005.00

Inventory

98441505.3281891850.8584936401.7295396954.45

goods

Revolving

966891.96966891.96

material

Consignment

processing 5290502.32 5290502.32

materials

Total 119539904.60 81891850.85 84936401.72 116495353.73

(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

Unit: CNY/RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Amount and reasons for the major changes of book value of contract assets in the period:

Unit: CNY/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

Unit: CNY/RMB

Item Current accrual Current reversal Charge off/Written-off Causes

Other explanation

11. Assets held for sale

Unit: CNY/RMB

Ending book Impairment Ending book Estimated Estimated

Item Fair value

balance provision value disposal cost disposal time

Other explanation

12. Non-current asset due within one year

Unit: CNY/RMB

Item Ending balance Opening balance

123深圳市深粮控股股份有限公司2022年半年度报告全文

Important creditors’ investment/ other creditors’ investment

Unit: CNY/RMB

Ending balance Opening balance

Item Coupon Maturity Coupon Maturity

Face value Actual rate Face value Actual rate

rate date rate date

Other explanation

13. Other current assets

Unit: CNY/RMB

Item Ending balance Opening balance

Financial product 10000000.00

Prepayment of taxes 1451416.63 1403832.26

Input tax to be deducted 94674381.15 77054152.64

Total 96125797.78 88457984.90

Other explanation:

14. Creditors’ investment

Unit: CNY/RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Important creditors’ investment

Unit: CNY/RMB

Ending balance Opening balance

Item Face Coupon Actual Maturity Face Coupon Actual Maturity

value rate rate date value rate rate date

Accrual of impairment provision

Unit: CNY/RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

Balance of Jan. 1 2022

in the period

Change of book balance of loss provision with amount has major changes in the period

□ Applicable √Not applicable

Other explanation

124深圳市深粮控股股份有限公司2022年半年度报告全文

15. Other creditors’ investment

Unit: CNY/RMB

Loss

impairment

accumulate

Change of Accumulat

Opening Accrual fair value Ending ed change

Item Cost recognized Note

balance interest in the balance of fair

in other

period value

comprehen

sive

income

Important other creditors’ investment

Unit: CNY/RMB

Other Ending balance Opening balance

creditor Coupon Maturity Coupon Maturity

item Face value Actual rate Face value Actual rate rate date rate date

Accrual of impairment provision

Unit: CNY/RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

Balance of Jan. 1 2022

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

Unit: CNY/RMB

Ending balance Opening balance

Discount rate

Item Bad debt Bad debt

Book balance Book value Book balance Book value interval

provision provision

Impairment of bad debt provision

Unit: CNY/RMB

Phase I Phase II Phase III

Bad debt provision Total

Expected credit losses Expected credit losses Expected credit losses

125深圳市深粮控股股份有限公司2022年半年度报告全文

over next 12 months for the entire duration for the entire duration

(without credit (with credit impairment

impairment occurred) occurred)

Balance of Jan. 1 2022

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

Unit: CNY/RMB

Current changes (+ -)

Ending

Investm Cash

Openin Other Accrual balance

ent dividen Ending

The g Additio compre of of

Capital gains Other d or balance

investe balance nal hensive impair impair

reducti recogni equity profit Other (book

d entity (book investm income ment ment

on zed change announ value)

value) ent adjustm provisi provisi

under ced to

ent on on

equity issued

I. Joint venture

II. Associated enterprise

Shenzh

Duoxi

Equity

Investm -

2782624659

ent 31675

91.3035.99

Fund 5.31

Manage

ment

Co.Ltd.Zhuhai

Hengxi

ng Feed 31534 31315

21933

Industri 652.77 314.63

8.14

al Co.Ltd.

126深圳市深粮控股股份有限公司2022年半年度报告全文

Shenlia

Intellig

ent

Wulian

Equity

Investm

ent -

2800627724

Fund 28157

043.15466.71

(Shenz 6.44

hen)

Partner

ship

Enterpr

ise

(Limite

Shenzh

Shenyu

111672825811449

an Data

056.279.90646.17

Tech.Co.Ltd

Shenba

Liaoyu

an 57628.Investm 53

ent

Compa

Shenzh

Shenba

28700

(Xinmi

00.00

Foods

Co.Ltd.*1

Subtota 73490 72955 29276

53507

l 443.49 363.50 28.53

9.99

127深圳市深粮控股股份有限公司2022年半年度报告全文

734907295529276

Total 53507

443.49363.5028.53

9.99

Other explanation

18. Other equity instrument investment

Unit: CNY/RMB

Item Ending balance Opening balance

Itemized the non-tradable equity instrument investment in the period

Unit: CNY/RMB

Causes of those

that designated

Cause of

Retained measured by

retained

earnings fair value and

Dividend earnings

Cumulative Cumulative transfer from with its

Item income transfer from

gains losses other variation

recognized other

comprehensive reckoned into

comprehensive

income other

income

comprehensive

income

Other explanation

10. Other non-current financial assets

Unit: CNY/RMB

Item Ending balance Opening balance

Debt instrument investment 80000000.00

Equity instrument investment 57500.00 57500.00

Total 80057500.00 57500.00

Other explanation:

20. Investment real estate

(1) Measured at cost

√ Applicable □Not applicable

Unit: CNY/RMB

Construction in

Item House and building Land use right Total

progress

I. Original book value

1.Opening balance 583090328.15 583090328.15

2.Current amount

increased

128深圳市深粮控股股份有限公司2022年半年度报告全文

(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 583090328.15 583090328.15

II. Accumulated

depreciation and

accumulated

amortization

1.Opening balance 349993629.66 349993629.66

2.Current amount

7979780.887979780.88

increased

(1) Accrual or

7979780.887979780.88

amortization

3.Current amount

decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance 357973410.54 357973410.54

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

129深圳市深粮控股股份有限公司2022年半年度报告全文

1.Ending book value 225116917.61 225116917.61

2. Opening book value 233096698.49 233096698.49

(2) Measure on fair value

□ Applicable √Not applicable

(3) Investment real estate without property certificate completed

Unit: CNY/RMB

Item Book value Reasons

Other explanation

21. Fixed assets

Unit: CNY/RMB

Item Ending balance Opening balance

Fixed assets 2119548279.71 2124725043.92

Fixed assets disposal 3106105.27 3106105.27

Total 2122654384.98 2127831149.19

(1) Fixed assets

Unit: CNY/RMB

House and Machinery Transport Electronic and

Item Total

buildings equipment equipment other equipment

I. Original book

value:

1.Opening

1865763990.05727276785.7020575716.4793892840.292707509332.51

balance

2.Current

40608120.937900.001863135.3842479156.31

amount increased

(1) Purchase 24420089.59 7900.00 1863135.38 26291124.97

(2) Construction in

progress transfer- 16188031.34 16188031.34

(3)

Increased by

combination

3.Current

2247336.742673.97142513.942392524.65

amount decreased

(1) Disposal

2247336.742673.97142513.942392524.65

or scrap

130深圳市深粮控股股份有限公司2022年半年度报告全文

4.Ending

1865763990.05765637569.8920580942.5095613461.732747595964.17

balance

II. Accumulated

depreciation

1.Opening

252952615.07257603342.4515577950.3753827426.99579961334.88

balance

2.Current

22066578.8418678058.80593294.375582737.1246920669.13

amount increased

(1) Accrual 22066578.84 18678058.80 593294.37 5582737.12 46920669.13

3.Current

1516698.651613.47138961.141657273.26

amount decreased

(1) Disposal

1516698.651613.47138961.141657273.26

or scrap

4.Ending

275019193.91274764702.6016169631.2759271202.97625224730.75

balance

III. Impairment

provision

1.Opening

2813063.849889.872822953.71

balance

2.Current

amount increased

(1) Accrual

3.Current

amount decreased

(1) Disposal

or scrap

4.Ending

2813063.849889.872822953.71

balance

IV. Book value

1.Ending book

1590744796.14488059803.454411311.2336332368.892119548279.71

value

2. Opening

1612811374.98466860379.414997766.1040055523.432124725043.92

book value

(2) Temporarily idle fixed assets

Unit: CNY/RMB

Original book Accumulated Impairment

Item Book value Note

value depreciation provision

131深圳市深粮控股股份有限公司2022年半年度报告全文

(3) Fixed assets leased out by operation

Unit: CNY/RMB

Item Ending book value

(4) Fix assets without property certification held

Unit: CNY/RMB

Reasons for without the property

Item Book value

certification

House buildings 594712049.26 Still under processing

At present the relevant application and

House buildings 14873443.16

approval procedures are being started.Other explanation

(5) Fixed assets disposal

Unit: CNY/RMB

Item Ending balance Opening balance

Disposal of fixed assets - machinery

3106105.273106105.27

equipment

Total 3106105.27 3106105.27

Other explanation

13. Construction in progress

Unit: CNY/RMB

Item Ending balance Opening balance

Construction in progress 198788393.17 207946539.97

Total 198788393.17 207946539.97

(1) Construction in progress

Unit: CNY/RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Dongguan

grain storage

and wharf 147012469.99 147012469.99 138980117.20 138980117.20

matching

project

Jiangxia Base

27236162.0227236162.0227039711.4427039711.44

Project

132深圳市深粮控股股份有限公司2022年半年度报告全文

Installation

Project/Phase I

Project 773845.16 773845.16 11405601.69 11405601.69

(Shuangya

Mountain)

Pinghu Grain

Depot Phase III

Low

Temperature

Rice 8584169.91 8584169.91

Warehouse

Expansion and

Reconstruction

Project-L2

Pinghu Grain

Depot Phase III

Low

Temperature

Rice 7637139.21 7637139.21

Warehouse

Expansion and

Reconstruction

Project-L4

Cold chain

intelligent 3645282.94 3645282.94 3645282.94 3645282.94

system

CDE storage of

Dongguan

Food Industrial 2476401.46 2476401.46 1953288.69 1953288.69

Park and wharf

mating projects

Far-reaching

data technology

smart logistics

park 2777600.00 2777600.00 1587200.00 1587200.00

management

platform

project

Warehouse No.

6 Smart

Warehouse 1175982.45 1175982.45 1175982.45 1175982.45

Renovation

Project

Deep 824660.05 824660.05 824660.05 824660.05

133深圳市深粮控股股份有限公司2022年半年度报告全文

processing of

Dongguan

Industry and

Trading Food

Shenbao Plaza

3842333.643842333.643842333.643842333.64

project

Small packing

2369122.032369122.03

line

Digital

construction

software

2155000.002155000.00

development of

Shenyuan

Digital Phase V

Other 9245056.81 903189.74 8341867.07 6016576.13 903189.74 5113386.39

Total 203533916.55 4745523.38 198788393.17 212692063.35 4745523.38 207946539.97

(2) Changes of major construction in progress

Unit: CNY/RMB

Includi

ng:

Propor Accum

Curren amoun Interes

Other tion of ulated

Openi t Transf t of t

decrea Ending project capital Capital

Item ng amoun er-in Progre capital capital

Budget sed in balanc invest ization resour

Name balanc t fixed ss ization ization

the e ment of ces

e increas assets of rate in

Period in interes

ed interes Period

budget t

t in

Period

Dongg

uan

grain

storag 1242 13898 14701 35743

803277.4277.4284894

e and 00000 0117. 2469. 874.2 4.36% Other

352.79%%0.01

wharf 0.00 20 99 1

matchi

project

Deep

proces 29200

824668246642.0042.003552

sing of 0000. Other

0.050.05%%458.11

Dongg 00

uan

134深圳市深粮控股股份有限公司2022年半年度报告全文

Industr

y and

Tradin

g Food

CDE

storag

e of

Dongg

uan

Food

108786730

Industr 1953 52311 2476 98.50 98.50

30000 568.7 Other

ial 288.69 2.77 401.46 % %

0.004

Park

and

wharf

mating

project

2621141751503112602

855584894

Total 30000 8065. 3531. 6901. --

465.560.01

0.00945006

(3) The provision for impairment of construction in progress

Unit: CNY/RMB

Item Amount accrual in the period Reasons of accrual

Other explanation

(4) Engineering material

Unit: CNY/RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Other explanation

23. Productive biological asset

(1) Measured by cost

√ Applicable □Not applicable

Unit: CNY/RMB

Plant Livestock Forestry Fisheries

Item Total

Tea tree

I. Original book

135深圳市深粮控股股份有限公司2022年半年度报告全文

value

1.Opening

416771.28416771.28

balance

2.Current

amount increased

(1)Outsourcing

(2)self-

cultivate

3.Current

amount decreased

(1)Disposal

(2)Other

4.Ending

416771.28416771.28

balance

II. Accumulated

depreciation

1.Opening

38769.4838769.48

balance

2.Current

4846.204846.20

amount increased

(1)Accrual 4846.20 4846.20

3.Current

amount decreased

(1)Disposal

(2)Other

4.Ending

43615.6843615.68

balance

III. Impairment

provision

1.Opening

balance

2.Current

amount increased

(1)Accrual

3.Current

amount decreased

(1)Disposal

136深圳市深粮控股股份有限公司2022年半年度报告全文

(2)Other

4.Ending

balance

IV. Book value

1.Ending book

373155.60373155.60

value

2. Opening book

378001.80378001.80

value

(2) Measured by fair value

□ Applicable √Not applicable

24. Oil and gas asset

□ Applicable √Not applicable

25. Right-of-use asset

Unit: CNY/RMB

Item House building Land use rights Total

I. Original book value

1.Opening balance 114263346.96 1903312.71 116166659.67

2.Current amount

950847.20950847.20

increased

New leasing 950847.20 950847.20

3.Current amount

decreased

4.Ending balance 115214194.16 1903312.71 117117506.87

II. Accumulated depreciation

1.Opening balance 18280071.52 237914.09 18517985.61

2.Current amount

10581369.06118957.0310700326.09

increased

(1) Accrual 10581369.06 118957.03 10700326.09

3.Current amount

decreased

(1) Disposal

4.Ending balance 28861440.58 356871.12 29218311.70

III. Impairment provision

1.Opening balance

137深圳市深粮控股股份有限公司2022年半年度报告全文

2.Current amount

increased

(1) Accrual

3.Current amount

decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending book value 86352753.58 1546441.59 87899195.17

2. Opening book value 95983275.44 1665398.62 97648674.06

Other explanation:

26. Intangible assets

(1) Intangible assets

Unit: CNY/RMB

Non-

Software

Land use patent Trademar Forest use Shop use

Item Patent usage Other Total

right technolog k rights rights rights

rights

I.Original

book

value

63949724724591184073.354841232285910361048721221427894595

1.Openin

82.338.8921.994.98.372.6421.52

g balance

2.Current 459024.8 459024.8

amount 7 7

increased

459024.8459024.8

(1)

Purchase

(2)

internal

R&D

(3)

Increased

138深圳市深粮控股股份有限公司2022年半年度报告全文

combinati

3.Current

amount

decreased

(1)

Disposal

63949724724591184073.355300252285910361048721221427899185

4.Ending

82.338.8926.864.98.372.6446.39

balance

II.Cumulati

amortizati

11189712942116134532.715904706944583152532275432271733707

1.Openin

60.878.1965.80.32.61.7301.28

g balance

2.Current 7810964 714367.5 3773555 386431.8 1884095 1462929

5875.0854002.70

amount .96 6 .06 0 .41 2.57

increased

7810964714367.53773555386431.818840951462929

(1)5875.0854002.70.966.060.412.57

Accrual

3.Current

amount

decreased

(1)

Disposal

11970813013553140407.819678267331015157932594273231879999

4.Ending

25.835.7540.86.12.31.1493.85

balance

III.

139深圳市深粮控股股份有限公司2022年半年度报告全文

Impairme

provision

555328311303416683625

1.Openin.54.88.42

g balance

2.Current

amount

increased

(1)

Accrual

3.Current

amount

decreased

(1)

Disposal

555328311303416683625

4.Ending.54.88.42

balance

IV. Book

value

1.Ending 5197891 1155709 3449165 1552808 2031162 1179409 5952349

43665.48

book 56.50 9.60 4.12 9.86 .06 9.50 27.12

value

Opening 5276001 1227146 3780618 1591452 2085164 1367819 6094051

49540.56

book 21.46 7.16 4.31 1.66 .76 4.91 94.82

value

Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end

(2) Land use rights without certificate of ownership

Unit: CNY/RMB

Reasons for without the property

Item Book value

certification

Land use right 7849990.00 Still under processing

140深圳市深粮控股股份有限公司2022年半年度报告全文

Other explanation:

27. Expense on Research and Development

Unit: CNY/RMB

Current amount increased Current amount decreased

Internal Confirmed Transfer to

Opening Ending

Item developme as current

balance Other balance

nt intangible profit and

expenditure assets loss

Z2210401;

Z2210101 326306.90 326306.90

project

Total 326306.90 326306.90

Other explanation

28. Goodwill

(1) Original book value

Unit: CNY/RMB

The invested Current increased Current decreased

entity or

Opening Formed by

matters Ending balance

balance business Dispose

forming

combination

goodwill

Wuhan

Jiacheng

1953790.561953790.56

Biotechnology

Co. Ltd.Yunnan Pu’er

Tea Trading

673940.32673940.32

Center Co.Ltd.Total 2627730.88 2627730.88

(2) Goodwill impairment provision

Unit: CNY/RMB

The invested Current increased Current decreased

entity or

Opening

matters Ending balance

balance Accrual Dispose

forming

goodwill

141深圳市深粮控股股份有限公司2022年半年度报告全文

Yunnan Pu’er

Tea Trading

673940.32673940.32

Center Co.Ltd.Total 673940.32 673940.32

Relevant information about the assets group or portfolio goodwill included

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

Unit: CNY/RMB

Current amount Current

Item Opening balance Other decreased Ending balance

increased amortization

Improve

expenditure for fix 14283062.63 450179.21 2046251.80 12686990.04

assets

Decoration fee 9235428.02 751329.99 1168987.24 8817770.77

Improve

expenditure for

283138.7719087.98264050.79

investment real

estate

Affiliated project

of resident area in

70356.3113191.7857164.53

Wuyuan

Jufangyong

Other 4923220.72 125500.00 719037.55 4329683.17

Total 28795206.45 1327009.20 3966556.35 26155659.30

Other explanation

30. Deferred income tax asset /Deferred income tax liabilities

(1) Deferred income tax assets without offset

Unit: CNY/RMB

Ending balance Opening balance

Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax

differences asset differences asset

Impairment provision

63091518.2315132426.7662056367.0515139642.20

for assets

Unrealized profits in 2845136.63 426770.49 2250127.31 337519.10

142深圳市深粮控股股份有限公司2022年半年度报告全文

internal transactions

Deductible loss 2383937.40 357590.61 2383937.40 357590.61

Credit impairment loss 99746216.18 24680944.35 99371735.40 24694673.56

Total 168066808.44 40597732.21 166062167.16 40529425.47

(2) Deferred income tax liability without offset

Unit: CNY/RMB

Ending balance Opening balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

differences liabilities differences liabilities

Asset evaluation

increment of enterprise

60330328.8613661333.1161157763.6913868191.82

combine under

different control

Total 60330328.86 13661333.11 61157763.69 13868191.82

(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

Unit: CNY/RMB

Ending balance of Trade-off between the Opening balance of

Trade-off between the

deferred income tax deferred income tax deferred income tax

Item deferred income tax

assets or liabilities assets and liabilities at assets or liabilities

assets and liabilities

after off-set period-begin after off-set

Deferred income tax

40597732.2140529425.47

asset

Deferred income tax

13661333.1113868191.82

liabilities

(4) Details of uncertain deferred income tax assets

Unit: CNY/RMB

Item Ending balance Opening balance

Deductible temporary differences 150364591.83 155064630.67

Deductible loss 262976172.93 254117581.76

Total 413340764.76 409182212.43

(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

Unit: CNY/RMB

Year Ending amount Opening amount Note

Other explanation

143深圳市深粮控股股份有限公司2022年半年度报告全文

31. Other non-current asset

Unit: CNY/RMB

Ending balance Opening balance

Item Book Impairment Book Impairment

Book value Book value

balance provision balance provision

1329101.1329101.

Prepaid for equipment 596301.00 596301.00

0000

4701190.4701190.4602630.4602630.

Prepaid for system

87875858

5297491.5297491.5931731.5931731.

Total

87875858

Other explanation:

32. Short-term loans

(1) Category

Unit: CNY/RMB

Item Ending balance Opening balance

Guaranteed Loan 5000000.00 1500000.00

Loan in credit 720635087.73 503266782.25

Total 725635087.73 504766782.25

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:

Unit: CNY/RMB

Borrower Ending balance Loan rate Overdue time Overdue interest

Other explanation

33. Tradable financial liability

Unit: CNY/RMB

Item Ending balance Opening balance

Including:

Other explanation

34. Derivative financial liability

Unit: CNY/RMB

Item Ending balance Opening balance

144深圳市深粮控股股份有限公司2022年半年度报告全文

Other explanation

35. Note payable

Unit: CNY/RMB

Category Ending balance Opening balance

Notes expired at year-end without paid was 0 Yuan.

36. Account payable

(1) Account payable

Unit: CNY/RMB

Item Ending balance Opening balance

Trade accounts payable 339539462.40 154756781.25

Account payable for engineering 213373487.06 271692014.89

Other 1935229.97 457873.57

Total 554848179.43 426906669.71

(2) Major accounts payable with age over one year

Unit: CNY/RMB

Item Ending balance Reasons of outstanding or carry-over

Other explanation

37. Accounts received in advance

(1) Accounts received in advance

Unit: CNY/RMB

Item Ending balance Opening balance

Other 8440204.85 2379891.67

Total 8440204.85 2379891.67

(2) Important account received in advance with account age over one year

Unit: CNY/RMB

Item Ending balance Reasons of outstanding or carry-over

Other explanation

38. Contract liabilities

Unit: CNY/RMB

Item Ending balance Opening balance

145深圳市深粮控股股份有限公司2022年半年度报告全文

Sales price 83531467.12 182972314.85

Total 83531467.12 182972314.85

Amount and reasons for important changes of book value in the period

Unit: CNY/RMB

Item Amount changed Reasons of changes

39. Wage payable

(1) Wage payable

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

I. Short-term

302581812.37158075025.42229833716.93230823120.86

compensation

II. After-service

welfare-defined 17397568.50 12007617.69 17295092.95 12110093.24

contribution plans

III. Dismissed welfare 726674.60 1324436.60 1324436.60 726674.60

Total 320706055.47 171407079.71 248453246.48 243659888.70

(2) Short-term compensation

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

1. Wage bonus

295270793.56137398476.17208775279.00223893990.73

allowance and subsidy

2. Employees’ welfare 396756.42 6993908.40 7390664.82

3. Social insurance

349682.303250914.473426137.14174459.63

charges

Including:

medical insurance 314270.80 2969056.31 3127418.60 155908.51

premium

Industrial injury

6181.14102660.70106094.622747.22

insurance premiums

Maternity

29230.36179197.46192623.9215803.90

insurance premiums

4. Housing public

8245811.077824092.21421718.86

reserve

5. Trade union fee and

6564580.092185915.312417543.766332951.64

education fee

Total 302581812.37 158075025.42 229833716.93 230823120.86

146深圳市深粮控股股份有限公司2022年半年度报告全文

(3) Defined contribution plans

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

1. Basic endowment

9014786.618841985.53172801.08

insurance premiums

2. Unemployment

8702.95100023.75104654.114072.59

insurance premiums

3. Enterprise annuity 17388865.55 2892807.33 8348453.31 11933219.57

Total 17397568.50 12007617.69 17295092.95 12110093.24

Other explanation:

40. Taxes payable

Unit: CNY/RMB

Item Ending balance Opening balance

VAT 4683262.98 5394516.81

Enterprise income tax 16598156.90 75860781.94

Personal income tax 16086239.75 2264416.73

Urban maintenance and construction tax 215257.06 247110.08

House property tax 5688062.47 1310817.90

Deed tax 664227.84 664227.84

Stamp tax 262711.31 648290.86

Use tax of land 794772.27 214536.03

Educational surtax 180191.99 203981.23

Other 84910.90 4908.73

Total 45257793.47 86813588.15

Other explanation:

41. Other account payable

Unit: CNY/RMB

Item Ending balance Opening balance

Dividend payable 2933690.04 2933690.04

Other account payable 376576997.70 373673508.95

Total 379510687.74 376607198.99

(1) Interest payable

Unit: CNY/RMB

Item Ending balance Opening balance

Major overdue interest:

Unit: CNY/RMB

Borrower Overdue amount Overdue causes

147深圳市深粮控股股份有限公司2022年半年度报告全文

Other explanation

(2) Dividend payable

Unit: CNY/RMB

Item Ending balance Opening balance

Common stock dividend 2933690.04 2933690.04

Total 2933690.04 2933690.04

Other explanation including important dividend payable over one year without payment disclose reasons for

un-paid:

(3) Other account payable

1) By nature

Unit: CNY/RMB

Item Ending balance Opening balance

Engineering quality retention money and

963863.071436175.56

fund of tail

Deposit and margin 114423319.31 134841365.60

Intercourse funds and other 225376359.53 201486678.66

Drawing expenses in advance 35813455.79 35909289.13

Total 376576997.70 373673508.95

2) Significant other account payable with over one year age

Unit: CNY/RMB

Item Ending balance Reasons of outstanding or carry-over

Other explanation

42. Liability held for sale

Unit: CNY/RMB

Item Ending balance Opening balance

Other explanation

43. Non-current liabilities due within one year

Unit: CNY/RMB

Item Ending balance Opening balance

Long-term loans due within one year 100942021.51 108955105.34

Lease liabilities due within one year 11890508.04 19777369.82

Total 112832529.55 128732475.16

Other explanation:

148深圳市深粮控股股份有限公司2022年半年度报告全文

44. Other current liabilities

Unit: CNY/RMB

Item Ending balance Opening balance

VAT payable 1764823.46 4367576.91

Total 1764823.46 4367576.91

Change of short-term bonds payable:

Unit: CNY/RMB

Premiu

Accrual m and

Openin Issued Paid in

Face Issuanc Bonds Amoun interest discoun Ending

Bonds g in the the

value e date term t issued by face t balance

balance period period

value amortiz

ation

Total

Other explanation: nil

45. Long-term loans

(1) Category

Unit: CNY/RMB

Item Ending balance Opening balance

Mortgage + guarantee 624310269.81 730521692.22

Total 624310269.81 730521692.22

Explanation on category of long-term loans:

Other explanation including interest rate range:

46. Bonds payable

(1) Bonds payable

Unit: CNY/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)

Unit: CNY/RMB

Accrual Premiu

Openin Issued Paid in

Face Issuanc Bonds Amoun interest m and Ending

Bonds g in the the

value e date term t issued by face discoun balance

balance period period

value t

149深圳市深粮控股股份有限公司2022年半年度报告全文

amortiz

ation

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

Unit: CNY/RMB

Outstandin Period-beginning Current increased Current decreased Period-end

g financial

Amount Book value Amount Book value Amount Book value Amount Book value

instrument

Basis for financial liability classification for other financial instrument

Other explanation

47. Lease liability

Unit: CNY/RMB

Item Ending balance Opening balance

Lease Payments 99431195.96 110058216.03

Unrecognized financing charges -8200090.85 -10107102.46

Lease liabilities due within one year -11890508.04 -19777369.82

Total 79340597.07 80173743.75

Other explanation

48. Long-term account payable

Unit: CNY/RMB

Item Ending balance Opening balance

Special account payable 17445737.26 17266921.98

Total 17445737.26 17266921.98

(1) By nature

Unit: CNY/RMB

Item Ending balance Opening balance

Other explanation

150深圳市深粮控股股份有限公司2022年半年度报告全文

(2) Special account payable

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance Causes

Depreciation fund

16277275.9828437.2816305713.26

for grain deposits

Shenzhen Hospital

Phase III Housing

Expropriation 989646.00 150378.00 1140024.00

Property Rights

Exchange

Total 17266921.98 178815.28 17445737.26

Other explanation:

49. Long-term wage payable

(1) Long-term wage payable

Unit: CNY/RMB

Item Ending balance Opening balance

(2) Changes of defined benefit plans

Present value of the defined benefit plans:

Unit: CNY/RMB

Item Current Period Last Period

Scheme assets:

Unit: CNY/RMB

Item Current Period Last Period

Net liability (assets) of the defined benefit plans

Unit: CNY/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

Unit: CNY/RMB

Item Ending balance Opening balance Causes

External guarantee 3500000.00 3500000.00 See explanation for details

151深圳市深粮控股股份有限公司2022年半年度报告全文

Total 3500000.00 3500000.00 --

Other explanation including relevant important assumptions and estimation:

Note: According to the civil judgment made by the Shenzhen Intermediate People’s Court in the disputes over

loan contract between Changzhou Shenbao Chacang Electronic Commerce Co. Ltd. and Shenzhen Agricultural

Products Financing Guarantee Co. Ltd. the Company shall assume joint and several liabilities for repayment of

the debts of Changzhou Shenbao Chacang Electronic Commerce Co. Ltd. within the scope of 3.5 million yuan.

51. Deferred income

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance Causes

Government

subsidy related to 93129536.68 6048603.76 87080932.92

assets

Total 93129536.68 6048603.76 87080932.92

Item with Government subsidy involved:

Unit: CNY/RMB

Amount

Amount Cost

New grants reckoned in Assets-

Opening reckoned in reduction Other Ending

Liability in the non- related/inco

balance other in the changes balance

Period operation me related

income period

revenue

Intelligent

manageme

nt of grain Assets-

266666.52100000.02166666.50

depot based related

on mobile

internet

Special

funds for

intelligent

upgrading

and

6287083.3 5809583.4 Assets-

transformat 477499.98

9 1 related

ion of grain

warehouse“GrainSafetyProject”

Governmen

t central

6219714.5 3633373.4 2586341.1 Assets-

governmen

8 4 4 related

t grant

funds

152深圳市深粮控股股份有限公司2022年半年度报告全文

Base of

further

processing Assets-

274999.96137500.02137499.94

for tea and related

nature

plants

Special

fund for the

developme

nt of

2485265.7 2309661.2 Assets-

strategic 175604.52

5 3 related

emerging

industries

Shenzhen

Industrializ

ation of 1494799.0 1396576.0 Assets-

98222.94

instant tea 3 9 related

powder

Enterprise

technology

center is a

municipal

R&D

center.

1375227.4 1273215.2 Assets-

Subsidies 102012.24

9 5 related

for

industrial

technologic

advanceme

Grant for

key

technology

research

Assets-

and 110276.21 7122.48 103153.73

industrializ

ation of

instant tea

powder

Constructio

Assets-

n amount 124999.90 62500.02 62499.88

for 50 tons

153深圳市深粮控股股份有限公司2022年半年度报告全文

for clearly

processing

for

Mingyou

tea

Subsidy for

supply

system

Assets-

constructio 150000.00 100000.00 50000.00

n of

agricultural

products

Constructio

n of O2O

community

sales

service

system for

1679875.0 1663536.0 Assets-

high 16339.04

8 4 related

quality

grain and

oil based

on B2C E-

commerce

platform

Industrializ

ation of

Assets-

Doximi E- 241860.58 241860.58

commerce

platform

Grain

storage

project of

Dongguan 7455646.4 7324517.9 Assets-

131128.56

Shenliang 7 1 related

Logistics

Co. Ltd. -

Storage A

Phase II of

grain

storage 29874797. 29359147. Assets-

515650.26

project of 96 70 related

Dongguan

Shenliang

154深圳市深粮控股股份有限公司2022年半年度报告全文

Logistics

Co. Ltd.-

Storage B

Grain oil

and food

headquarter

s and

innovative

public 18000000. 18000000. Assets-

service 00 00 related

platform of

Dongguan

Shenliang

Logistics

Co. Ltd.Constructio

n of

450000 ton

silos and

60000 ton 17088323. 16838534. Assets-

249789.66

film silos - 76 10 related

CDE

warehouse.Gas storage

bin

93129536.6048603.787080932.

Total

68692

Other explanation:

52. Other non-current liabilities

Unit: CNY/RMB

Item Ending balance Opening balance

Other explanation

53. Share capital

Unit: CNY/RMB

Increased (decreased) in this period (+ -)

Opening Ending

New shares converted

balance Bonus shares Other Subtotal balance

issued from public

reserve

Total shares 115253525 115253525

155深圳市深粮控股股份有限公司2022年半年度报告全文

4.004.00

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

Unit: CNY/RMB

Outstandin Period-beginning Current increased Current decreased Period-end

g financial

Amount Book value Amount Book value Amount Book value Amount Book value

instrument

Changes of other equity instrument change reasons and relevant accounting treatment basis:

Other explanation

55. Capital public reserve

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

Capital premium

(Share capital 1250743274.79 1250743274.79

premium)

Other capital reserve 8896381.86 8896381.86

Total 1259639656.65 1259639656.65

Other instructions including changes in the current period reasons for the change:

56. Treasury stock

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

Other explanation including changes and reasons for changes:

57. Other comprehensive income

Unit: CNY/RMB

Current Period

Less: Less:

written in written in

Account Belong to Belong to

Opening other other Ending

Item before Less : income parent minority

balance comprehen comprehen balance

income tax tax expense company after shareholders

sive sive

in the period tax after tax

income in income in

previous previous

156深圳市深粮控股股份有限公司2022年半年度报告全文

period and period and

carried carried

forward to forward to

gains and retained

losses in earnings in

current current

period period

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

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

Production safety fee 723692.27 723692.27

Total 723692.27 723692.27

Other explanation including changes and reasons for changes:

58. Surplus public reserve

Unit: CNY/RMB

Item Opening balance Current increased Current decreased Ending balance

Statutory surplus

405575490.42405575490.42

reserves

Total 405575490.42 405575490.42

Other explanation including changes and reasons for changes:

60. Retained profit

Unit: CNY/RMB

Item Current period Last period

Retained profit at the end of the previous year

1812541701.271637536441.03

before adjustment

Total retained profit at the beginning of the

1812541701.271637536441.03

previous year before adjustment

Add: net profit attributable to shareholder of

237527782.93428720226.09

parent company

Less: withdrawal of legal surplus reserve 23207915.05

Common stock dividends payable 288133813.50 230507050.80

Retained profit at period-end 1761935670.70 1812541701.27

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

157深圳市深粮控股股份有限公司2022年半年度报告全文

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

Unit: CNY/RMB

Current period Last period

Item

Income Cost Income Cost

Main business 4337091078.42 3774554176.15 5259568275.95 4649191683.41

Other business 953449.93 1271449.66 2620904.58 1205387.26

Total 4338044528.35 3775825625.81 5262189180.53 4650397070.67

Information relating to revenue:

Unit: CNY/RMB

Category Branch 1 Branch 2 Total

Product Types

Including:

Classification by

business area

Including:

Market or customer

type

Including:

Contract Types

Including:

Classification by time

of goods transfer

Including:

Classification by

contract duration

Including:

Classification by sales

channel

158深圳市深粮控股股份有限公司2022年半年度报告全文

Including:

Total

Information relating to performance obligations:

Nil

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 83531467.12 yuan among

them 83531467.12 yuan of revenue is expected to be recognized in 1 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

Unit: CNY/RMB

Item Current period Last period

Consumption tax 895956.94 544486.02

Urban maintenance and construction tax 679527.61 411731.33

House property tax 5248155.88 4225156.71

Use tax of land 1110186.75 945095.60

Vehicle and vessel use tax 11504.16 8953.20

Stamp duty 1098343.62 826252.63

Other 6810.95 7604.36

Total 9050485.91 6969279.85

Other explanation:

63. Sales expenses

Unit: CNY/RMB

Item Current Period Last Period

Labor and social security benefits 50753585.91 40890403.82

Port terminal fee 716873.62 17962250.33

Warehousing loading and unloading fees 1731511.87 15646124.52

Depreciation and amortization of long-

6945867.516730728.23

term assets

Equivalent loss for low value perishable

1795020.012408636.91

goods

Utilities and office expenses 5073994.09 2848894.71

After-sale services 5310993.88 2359846.00

Rental fee 2387092.62 2942783.48

Advertisement charge 444896.32 790841.41

Travel expenses 489966.51 1101872.85

Business hospitality expenses 600487.33 799812.28

159深圳市深粮控股股份有限公司2022年半年度报告全文

Property insurance premium 412474.71 631971.43

Logistics transportation fee 1016601.52 2180760.95

Sales commission 231142.82 230219.20

Automobile expenses 98335.07 296086.85

Other 1322237.90 8890543.80

Total 79331081.69 106711776.77

Other explanation:

64. Administration expenses

Unit: CNY/RMB

Item Current Period Last Period

Labor and social security benefits 87350621.59 74829904.07

Depreciation and amortization of long-

19952461.8112401821.37

term assets

Office expenses 5602580.56 5946658.73

Intermediary agency fee 3139405.86 3127140.25

Rental 310642.57 2049677.28

Travel expenses 403109.35 721643.56

Communication fee 707182.05 602782.52

Business hospitality 413778.48 776421.99

Vehicle usage fee 492876.00 458887.95

Relocation and shutdown costs 412506.76 419391.74

Repair cost 183270.55 311482.72

Low-value consumables 84958.94 66494.16

Other 6578147.22 7603787.31

Total 125631541.74 109316093.65

Other explanation:

65. R&D expenses

Unit: CNY/RMB

Item Current Period Last Period

Labor and social security benefits 6716359.32 7052838.34

Depreciation cost 1998043.41 2141451.05

Logistics consumption 592590.41 350852.23

Travel expenses 139106.57 350496.63

Maintenance and inspection fee 102772.23 190595.59

Office expenses 362891.74 559237.89

Intermediary fees 62832.83 18883.02

Automobile expenses 199.50 27522.00

Other 162381.76 234141.40

Total 10137177.77 10926018.15

160深圳市深粮控股股份有限公司2022年半年度报告全文

Other explanation:

66. Financial expenses

Unit: CNY/RMB

Item Current period Last period

Interest expenses 27256521.87 15362400.04

Less: Interest income 1233894.54 765002.68

Exchange loss -335848.25 152194.11

Other 2322849.37 2455183.05

Total 28009628.45 17204774.52

Other explanation:

67. Other income

Unit: CNY/RMB

Sources Current period Last period

Government subsidies related to asset

Government subsidies related to income

Collectively deduction for input tax 258853.31 294887.24

Withholding personal income tax

287394.38321549.63

handling fee

Direct VAT exemption 7091.04 199.68

Government subsidy 7465486.58 4275292.75

Other 11418.67

Total 8030243.98 4891929.30

68. Investment income

Unit: CNY/RMB

Item Current period Last period

Long-term equity investment income

-535079.99440179.67

measured by equity

Income from financial products 3573445.74 3061191.63

Total 3038365.75 3501371.30

Other explanation:

69. Net exposure hedge gains

Unit: CNY/RMB

Item Current Period Last Period

Other explanation

161深圳市深粮控股股份有限公司2022年半年度报告全文

70. Income of fair value changes

Unit: CNY/RMB

Sources Current period Last period

Tradable financial assets 221889.46 288972.32

Total 221889.46 288972.32

Other explanation:

71. Credit impairment loss

Unit: CNY/RMB

Item Current period Last period

Loss of bad debt of other account

5099.8046004.50

receivable

Loss of bad debt of account receivable 240756.21 -11847.13

Total 245856.01 34157.37

Other explanation:

72. Assets impairment loss

Unit: CNY/RMB

Item Current period Last period

II. Inventory price drop loss and contract

-81499450.86-111448173.12

performance cost impairment loss

Total -81499450.86 -111448173.12

Other explanation:

73. Income from assets disposal

Unit: CNY/RMB

Sources Current period Last period

Profit and loss on disposal of non current

8318.64

assets

Total 8318.64

74. Non-operating income

Unit: CNY/RMB

Amount included in the

Item Current period Last period current non-recurring profit

and loss

Government subsidy 84111.74 3879.42 84111.74

Profit 91006.38

Other 358293.46 1532816.76 358293.46

162深圳市深粮控股股份有限公司2022年半年度报告全文

Liquidated damages

690612.11690612.11

compensation income

Total 1133017.31 1627702.56 1133017.31

Government subsidy reckoned into current gains/losses:

Unit: CNY/RMB

Whether

the impact

Whether Assets

Issuing Issuing Property subsidies Amount of Amount of

Grants special related/Inc

subject cause type on the this period last period

subsidies ome related

current

profit and

loss

Other explanation:

75. Non-operating expenditure

Unit: CNY/RMB

Amount included in the

Item Current period Last period current non-recurring profit

and loss

External donations 39545.29 150397.26 39545.29

Inventory loss 6532.18

Loss of scrap from non-

6686.7319868.546686.73

current assets

Other 20901.95 226366.32 20901.95

Total 67133.97 403164.30 67133.97

Other explanation:

76. Income tax expense

(1) Income tax expense

Unit: CNY/RMB

Item Current period Last period

Current income tax expenses 3110846.12 13716643.86

Deferred income tax expenses -152179.71 -309289.30

Total 2958666.41 13407354.56

(2) Adjustment process of accounting profit and income tax expenses

Unit: CNY/RMB

Item Current period

Total profit 241161774.66

163深圳市深粮控股股份有限公司2022年半年度报告全文

Income tax expenses calculated by statutory tax rate 60290443.67

Impact from different tax rate apply with the subsidiary -45564.86

Effect of adjusting income tax in the previous period -12917232.17

Impact of non taxable income -91450323.76

Impact on cost expenses and losses that unable to deducted 26924970.14

Impact of the deductible loss on deferred income tax assets not

-2174080.47

recognized in the prior period of use

Unrecognized impacts of deductible temporary differences or

22330453.86

deductible losses on deferred income tax assets in the period

Income tax expenses 2958666.41

Other explanation

77. Other comprehensive income

Found more in annotations

78. Annotation of cash flow statement

(1) Cash received with other operating activities concerned

Unit: CNY/RMB

Item Current period Last period

Intercourse funds and deposit 966296334.99 501614298.48

Government subsidy 1500994.56 6664197.50

Interest income 1233894.54 765002.68

Other 21683507.64

Total 969031224.09 509043498.66

Note of cash paid with other operating activities concerned:

(2) Cash paid with other operating activities concerned

Unit: CNY/RMB

Item Current period Last period

Intercourse funds and deposit 983321525.67 506989695.21

Operating daily expenses 38737048.77 80962607.92

Other 7805198.84 4025352.26

Total 1029863773.28 591977655.39

Note of cash paid with other operating activities concerned:

(3) Cash received with other investment activities concerned

Unit: CNY/RMB

Item Current period Last period

Other 154.49 54336.41

164深圳市深粮控股股份有限公司2022年半年度报告全文

Total 154.49 54336.41

Note of cash received with other investment activities concerned:

(4) Cash paid related with investment activities

Unit: CNY/RMB

Item Current period Last period

Other 928.80 109602.00

Total 928.80 109602.00

Note of cash paid related with investment activities:

(5) Cash received with other financing activities concerned

Unit: CNY/RMB

Item Current Period Last Period

Note of cash received with other financing activities concerned:

(6) Other cash paid related with financing activities

Unit: CNY/RMB

Item Current period Last period

Operating lease rent paid 9528424.77

Total 9528424.77

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

Unit: CNY/RMB

Supplementary information Current period Last period

1. Net profit adjusted to cash flow of

operation activities:

Net profit 238203108.25 245757926.43

Add: Impairment provision for assets 81253594.85 111414015.75

Depreciation of fixed assets consumption

of oil assets and depreciation of productive 54905296.21 39826096.31

biology assets

Depreciation of right-of-use assets 10700326.09 8663657.57

Amortization of intangible assets 14629292.57 13380523.65

Amortization of long-term pending

3966556.359959152.51

expenses

Loss from disposal of fixed assets

-570.00-8318.64

intangible assets and other long-term

165深圳市深粮控股股份有限公司2022年半年度报告全文

assets (income is listed with “-”)

Losses on scrapping of fixed assets

6686.7319868.54(income is listed with “-“)Loss from change of fair value (income is

-221889.46-288972.32listed with “-“)Financial expenses (income is listed with

26920673.6215500789.85

“-”)

Investment loss (income is listed with “-”) -3038365.75 -3501371.30

Decrease of deferred income tax assets

-68306.74-102430.60

(increase is listed with “-”)

Decrease of deferred income tax asset

-206858.71-206858.70

((increase is listed with “-”)

Decrease of inventory (increase is listed

-233168543.50-713312219.22

with “-”)

Decrease of operating receivable accounts

99277098.55-557180868.53

(increase is listed with “-”)

Increase of operating payable accounts

-32784596.20138806857.37

(decrease is listed with “-”)

Other

Net cash flow arising from operating

260373502.86-691272151.33

activities

2. Material investment and financing not

involved in cash flow

Conversion of debt into capital

Switching Company bonds due

within one year

financing lease of fixed assets

3. Net change of cash and cash

equivalents:

Balance of cash at period end 71460681.82 68774083.11

Less: Balance of cash at year-begin 49370080.20 190494225.94

Add: Balance at year-end of cash

equivalents

Less: Balance at year-begin of cash

equivalents

Net increasing of cash and cash

22090601.62-121720142.83

equivalents

(2) Net cash paid for obtaining subsidiary in the Period

Unit: CNY/RMB

Amount

Including:

166深圳市深粮控股股份有限公司2022年半年度报告全文

Including:

Other explanation

(3) Net cash received by disposing subsidiary in the Period

Unit: CNY/RMB

Amount

Including:

Other explanation

(4) Constitution of cash and cash equivalent

Unit: CNY/RMB

Item Ending balance Opening balance

I. Cash 71460681.82 49370080.20

Including: Cash on hand 67892.44 29370.19

Bank deposit available for payment

70821643.5049133969.39

at any time

Other monetary fund available for

571145.88206740.62

payment at any time

III. Balance of cash and cash equivalent

71460681.8249370080.20

at period-end

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

Unit: CNY/RMB

Item Ending book value Reasons for restriction

Monetary fund 1000000.00 Guarantee deposit

According to the long-term loan

mortgage contract signed by Dongguan

Logistics a subsidiary of the Company

with Shenzhen Branch of Agricultural

Fix assets 354690060.54

Development Bank and Huizhou

Zhongkai Sub-branch of HSBC

Dongguan Logistics has subordinate

mortgaged the real estate property rights

167深圳市深粮控股股份有限公司2022年半年度报告全文

of the structures of Yue (2020)

Dongguan Property Right No. 0127118

Yue (2020) Dongguan Property Right

No. 0127119 Yue (2020) Dongguan

Property Right No. 0127120 and Yue

(2020) Dongguan Property Right

No.0119705 at No. 10 Jingang South

Road Machong Town Dongguan City

and other aground buildings as collateral

for the loan.According to the long-term loan

mortgage contract signed by Dongguan

Logistics a subsidiary of the Company

with Shenzhen Branch of Agricultural

Development Bank and Huizhou

Zhongkai Sub-branch of HSBC

Dongguan Logistics has subordinate

mortgaged the real estate property rights

of the structures of Yue (2020)

Intangible assets 34607208.17

Dongguan Property Right No. 0127118

Yue (2020) Dongguan Property Right

No. 0127119 Yue (2020) Dongguan

Property Right No. 0127120 and Yue

(2020) Dongguan Property Right

No.0119705 at No. 10 Jingang South

Road Machong Town Dongguan City

and other aground buildings as collateral

for the loan.According to the loan contract Yue

DG2017 NGDZ No. 006 signed by

International Food a subsidiary of the

Company with Bank of

Communications Co. Ltd. Dongguan

Branch International Food has

Intangible assets 32555832.71

mortgaged its two pieces of land "DFGY

(2009) DT No. 190" and "Yue (2020)

Dongguan Real Estate Right No.

0321771" to the Bank of

Communications Co. Ltd. Dongguan

Branch as loan collateral.Total 422853101.42

Other explanation:

168深圳市深粮控股股份有限公司2022年半年度报告全文

82. Foreign currency monetary items

(1) Foreign currency monetary items

Unit: CNY/RMB

Ending foreign currency Ending RMB balance

Item Convert rate

balance converted

Monetary fund 5737909.01

Including: USD 730773.66 6.6889 4888071.93

EURO 97084.20 6.9881 678434.10

HKD 201106.39 0.8523 171402.98

Account receivable 3342927.74

Including: USD 471883.03 6.6889 3156378.40

EURO

HKD 218877.55 0.8523 186549.34

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 subsidy

(1) Government subsidy

Unit: CNY/RMB

Amount reckoned into current

Category Amount Item

gains/losses

Government subsidy related

87080932.92 Deferred income 6048603.76

to assets

169深圳市深粮控股股份有限公司2022年半年度报告全文

Government subsidy related

1416882.82 Other income 1416882.82

to income

Government subsidy related

84111.74 Non-operating income 84111.74

to income

(2) Government subsidies 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

Unit: CNY/RMB

Income of Net profit

Standard to

Acquired acquiree of acquiree

Time point Cost of Ratio of determine

way Equity Purchasing from from

Acquiree for equity equity equity the

obtained date purchasing purchasing

obtained obtained obtained purchasing

way date to date to

date

period-end period-end

Other explanation

(2) Combination cost and goodwill

Unit: CNY/RMB

Consolidation cost

--Cash

--Fair value of non-cash assets

--Fair value of debts issued or assumed

--Fair value of equity securities issued

-- Fair value of contingent consideration

--Fair value of the equity prior to the purchasing date

--Other

Total combination cost

Less: shares of fair value of identifiable net assets acquired

Goodwill/merger cost is less than the shares of fair value of

identifiable net assets acquired

Determination method for fair value of the combination cost and contingent consideration and changes:

Main reasons for large goodwill resulted:

Other explanation:

170深圳市深粮控股股份有限公司2022年半年度报告全文

(3) Identifiable assets and liability on purchasing date under the acquiree

Unit: CNY/RMB

Fair value on purchasing date Book value on purchasing date

Assets:

Monetary funds

Account receivable

Inventory

Fix assets

Intangible assets

Liability:

Loan

Account payable

Deferred tax liabilities

Net assets

Less: Minority interests

Net assets acquired

Determination method for fair value of the identifiable assets and liabilities:

Contingent liability of the acquiree bear during combination:

Other 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. Combine under the same control

(1) Enterprise combined under the same control in the Period

Unit: CNY/RMB

Equity ratio Basis of Standard to Income of Net profit Income of Net profit

obtained in combined Combinatio determine the of the the of the

Acquiree

combinatio under the n date the combined combined combined combined

n same combinatio party from party from party party

171深圳市深粮控股股份有限公司2022年半年度报告全文

control n date period- period- during the during the

begin of begin of comparison comparison

combinatio combinatio period period

n to the n to the

combinatio combinatio

n date n date

Other explanation

(2) Combination cost

Unit: CNY/RMB

Consolidation cost

--Cash

-- Book value of non-cash assets

- Book value of debts issued or assumed

-- The face value of the equity securities issued

--Contingent consideration

Explanation on contingent consideration and its changes:

Other explanation:

(3) Book value of the assets and liability of the combined party on combination date

Unit: CNY/RMB

Consolidation date End of last period

Assets:

Monetary funds

Account receivable

Inventory

Fix assets

Intangible assets

Liability:

Loan

Account payable

Net assets

Less: Minority interests

Net assets acquired

Contingent liability of the combined party bear during combination:

Other explanation

172深圳市深粮控股股份有限公司2022年半年度报告全文

3. Reverse purchase

Basic transaction information basis of counter purchase whether making up business due to the assets and

liability reserved by listed company and basis determination of combination cost amount and calculation on

adjusted equity by equity transaction:

4. Disposal 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:

In the reporting period subsidiary Shenzhen Shenbao Technology Center Co. Ltd was consolidated by subsidiary

Shenbao Huacheng new enterprise established including Zhenping Market Operation Tech. Co. Ltd. and

Shenliang Hongli Grain & Oil (Shenzhen) Co. Ltd.

6. Other

IX. Equity in other entity

1. Equity in subsidiary

(1) Constitute of enterprise group

Main place of Registration Share-holding ratio

Subsidiary Business nature Acquired way

operation place Directly Indirectly

Combine under

Grain & oil

SZCG Shenzhen City Shenzhen City 100.00% the same

trading

control

Combine under

Hualian Grain Grain & oil

Shenzhen City Shenzhen City 100.00% the same

& Oil trading

control

Combine under

Flour

Shenzhen Flour Shenzhen City Shenzhen City 100.00% the same

processing

control

Shenliang Combine under

Quality Shenzhen City Shenzhen City Inspection 100.00% the same

Inspection control

173深圳市深粮控股股份有限公司2022年半年度报告全文

Combine under

Hainan Grain Feed

Haikou City Haikou City 100.00% the same

and Oil production

control

Combine under

Doximi Shenzhen City Shenzhen City E-commerce 100.00% the same

control

Sales and

Combine under

processing of

Big Kitchen Shenzhen City Shenzhen City 70.00% the same

grain oil and

control

products

Combine under

Yingkou

Yingkou City Yingkou City Storage 100.00% the same

Storage

control

Fresh food Combine under

Cold-Chain

Shenzhen City Shenzhen City management 100.00% the same

Logistic

on-line control

Real estate

Combine under

Shenliang development

Shenzhen City Shenzhen City 100.00% the same

Property and property

control

management

Combine under

International Dongguan Dongguan Port operation

100.00% the same

Food City City food production

control

Combine under

Dongguan Dongguan Dongguan Food

100.00% the same

Grain and Oil City City production

control

Combine under

Dongguan Dongguan Dongguan Storage

49.00% 51.00% the same

Logistics City City logistics

control

Construction of

food base and

Combine under

Shuangyashan Shuangyashan development of

Shuangyashan 51.00% the same

City City related

control

complementary

facility

Shenliang

Shenzhen City Shenzhen City Catering 51.00% Establishment

Hongjun

Dongguan Dongguan Dongguan Grain and oil

100.00% Establishment

Hualian City City trade

Shenliang Property

Shenzhen City Shenzhen City 100.00% Establishment

Property management

Shenbao

Shenzhen City Shenzhen City Manufacturing 100.00% Establishment

Huacheng

Wuyuan Shangrao City Shangrao City Manufacturing 100.00% Establishment

174深圳市深粮控股股份有限公司2022年半年度报告全文

Jufangyong

Huizhou

Huizhou City Huizhou City Comprehensive 100.00% Establishment

Shenbao

Shenbao Investment

Shenzhen City Shenzhen City 100.00% Establishment

Investment management

Shenbao Tea Commercial

Shenzhen City Shenzhen City 100.00% Establishment

Culture trade

Ju Fang Yong Wholesale

Hangzhou City Hangzhou City 60.00% Establishment

Trading business

Ju Fang Yong

Hangzhou City Hangzhou City Comprehensive 100.00% Establishment

Holding

Fuhaitang Catering

Hangzhou City Hangzhou City 100.00% Establishment

Catering industry

Tea planting Combine not

Fuhaitang

Hangzhou City Hangzhou City production and 100.00% under the same

Ecological

sales control

Shenbao Rock

Wuyishan City Wuyishan City Manufacturing 100.00% Establishment

Tea

Pu'er Tea Wholesale

Pu’er City Pu’er City 100.00% Establishment

Supply Chain business

Pu’er Tea Service

Pu’er City Pu’er City 55.00% Establishment

Trading Center industry

Shenliang Food Huizhou City Shenzhen City Manufacturing 100.00% Establishment

Huizhou Wholesale

Huizhou City Huizhou City 100.00% Establishment

Shenliang Food business

Platform

Zhenpin construction

Shenzhen City Shenzhen City 51.00% Establishment

Market promotion and

operation

Shenbao

Wholesale

Industry & Huizhou City Shenzhen City 100.00% Establishment

business

Trade

Combine not

Wuhan Food

Wuhan City Wuhan City 51.00% under the same

Jiacheng production

control

Combine not

Food

Hubei Jiacheng Wuhan City Wuhan City 51.00% under the same

production

control

Combine not

Food

Wuhan Hongqu Wuhan City Wuhan City 51.00% under the same

production

control

Combine not

Macheng Food

Macheng City Macheng City 51.00% under the same

Jingtian production

control

175深圳市深粮控股股份有限公司2022年半年度报告全文

Hongli Grain Investment

Shenzhen City Shenzhen City 100.00% Establishment

and Oil management

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

Unit: CNY/RMB

Gains/losses Dividend announced to

Share-holding ratio of Ending equity of

Subsidiary attributable to minority distribute for minority

minority minority

in the Period in the Period

Big Kitchen 30.00% 744634.71 5072663.05

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

Unit: CNY/RMB

Ending balance Opening balance

Curren Non Curren Non

Subsid Non Total Non Total

Curren Total t current Curren Total t current

iary current liabiliti current liabiliti

t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti

assets es assets es

es es es es

Big 17771 18265 16446 16574 15952 16501 14931 15058

4938127954901279

Kitche 3127. 2099. 3970. 3222. 6005. 6347. 0334. 9586.

971.57252.02342.50252.02

n 91 48 63 65 38 88 72 74

Unit: CNY/RMB

Current Period Last Period

Total Cash flow Total Cash flow

Subsidiary Operating comprehen from Operating comprehen from

Net profit Net profit

revenue sive operation revenue sive operation

income activity income activity

Big 12958096 2482115.6 2482115.6 15549864 5975836.6

-45524.08

Kitchen 5.22 9 9 7.91 460798.48 460798.48 8

Other explanation

176深圳市深粮控股股份有限公司2022年半年度报告全文

(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

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

Unit: CNY/RMB

Purchase cost/disposal consideration

--Cash

--Fair value of non-cash assets

Purchase cost/total disposal consideration

Less: Subsidiary's share of net assets calculated based on the

proportion of acquired/disposed equity

Difference

Including: Adjust the capital reserve

Adjusted surplus reserve

Adjusted undistributed profit

Other explanation

3. Equity in joint venture and associated enterprise

(1) Important joint venture or associated enterprise

Share-holding ratio Accounting

treatment on

Joint

Main place of Registration investment for

venture/Associ Business nature

operation place Directly Indirectly joint venture

ated enterprise

and associated

enterprise

Zhuhai

Hengxing Feed Aquatic fee and

Zhuhai Zhuhai 40.00% Equity method

Industrial Co. animal fee

Ltd.Shenliang Equity

Intelligent Shenzhen Shenzhen investment; 49.02% Equity method

Wulian Equity investment

177深圳市深粮控股股份有限公司2022年半年度报告全文

Investment consultant

Fund

(Shenzhen)

Partnership

Enterprise

(Limited)

Description of the percentage of shareholding in joint ventures or associates different from the percentage of

voting rights:

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

Unit: CNY/RMB

Ending balance/Current Period Opening balance/Last Period

Current assets

Including: cash and cash equivalent

Non current assets

Total assets

Current liabilities

Non current liabilities

Total liabilities

Minority's interest

Shareholders' equity attributable to the

parent company

Share of net assets calculated by

shareholding ratio

Adjustment items

--Goodwill

--Unrealized profit of internal trading

-- Other

Book value of equity investment in joint

venture

Fair value of the equity investment of

joint ventures with public offers

concerned

Operating income

Financial expenses

Income tax expenses

Net profit

Net profit of discontinuing operation

Other comprehensive income

Total comprehensive income

178深圳市深粮控股股份有限公司2022年半年度报告全文

Dividends received from joint venture in

the year

Other explanation

(3) Main financial information of the important associated enterprise

Unit: CNY/RMB

Ending balance/Current Period Opening balance/Last Period

Shenliang Intelligent Shenliang Intelligent

Wulian Equity Wulian Equity

Zhuhai Hengxing Feed Zhuhai Hengxing Feed

Investment Fund Investment Fund

Industry Co. Ltd. Industry Co. Ltd.(Shenzhen) Partnership (Shenzhen) Partnership

Enterprise (Limited) Enterprise (Limited)

Current assets 210390264.04 20304410.64 109747137.54 20142644.00

Non current assets 25644502.33 36755628.56 26046337.28 36989582.89

Total assets 236034766.37 57060039.20 135793474.82 57132226.89

Current liabilities 160829908.06 510000.00 56918240.71

Non current liabilities 399384.69 445371.69

Total liabilities 161229292.75 510000.00 57363612.40

Minority's interest

Equity attributable to

shareholder of parent 74805473.62 56550039.20 78429862.42 57132226.89

company

Share of net assets

measured by 29922189.45 27720829.22 31371944.97 28006217.62

shareholding

Adjustment 1393125.18 3637.49 162707.80 -174.47

--Goodwill

--Unrealized profit of

internal trading

-- Other 1393125.18 3637.49 162707.80 -174.47

Book value of equity

investment in 31315314.63 27724466.71 31534652.77 28006043.15

associated enterprise

Fair value of the equity

investment of

associated enterprise

with public offers

concerned

Operating income 348236616.85 342054335.50

Net profit -548345.35 -574411.34 1430282.78 -223409.89

Net profit of

179深圳市深粮控股股份有限公司2022年半年度报告全文

discontinuing operation

Other comprehensive

income

Total comprehensive

-548345.35-574411.341430282.78-223409.89

income

Dividends received

from associated

enterprise in the year

Other explanation

(4) Financial summary for non-important Joint venture and associated enterprise

Unit: CNY/RMB

Ending balance/Current Period Opening balance/Last Period

Joint venture:

Amount based on share-holding ratio

Associated enterprise:

Total book value of investment 13915582.16 13949747.57

Amount based on share-holding ratio

--Net profit -34165.41 224696.61

--Total comprehensive income -34165.41 224696.61

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

Unit: CNY/RMB

Un-recognized losses not

Joint venture/Associated Cumulative un-recognized recognized in the Period (or Cumulative un-recognized

enterprise losses net profit enjoyed in the losses at period-end

Period)

Changzhou Shenbao Chacang

9515140.289515140.28

E-business Co. ltd.Shenzhen Shichumingmen

Catering Management Co. 4815325.70 4815325.70

Ltd.Other explanation

180深圳市深粮控股股份有限公司2022年半年度报告全文

(7) Unconfirmed commitment with joint venture investment concerned

(8) Intangible liability with joint venture or affiliates investment concerned

4. Major conduct joint operation

Main place of Shareholding ratio/ shares enjoyed

Name Registration place Business nature

operation 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:

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 rate risk interest risk and other price risk).The Company disperses the risk of financial instruments through appropriate diversified investment and business

portfolio and reduces the risk concentrating on a single industry specific region or specific counter party by

formulating corresponding risk management policies.

1. Credit risk

Credit risk refers to the risk of a financial loss caused by the counter party’s failure to fulfill its contractual

obligations.Credit risks of the Company arises mainly from monetary funds note receivable account receivable other

receivable debt investments financial guarantee contracts the debt instrument investments measured at fair

value and with its variation reckoned in current gain/loss that are not included in the scope of impairment

assessment and derivative financial assets etc. As at the balance sheet date the carrying value of the financial

assets represented its maximum exposure to credit risk;

Monetary funds of the Company are mainly the bank deposits placed with reputable state-owned banks and other

larger and medium-sized listed banks with high credit ratings we believes that it is not exposed to significant

credit risks and will hardly incur significant losses due to the bank defaults.Furthermore for bill receivable account receivables and other account 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

181深圳市深粮控股股份有限公司2022年半年度报告全文

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.As of 30 June 2022 the account receivable from top five customers accounted for 23.14% of the Company’s total

account receivable.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 theCompany exposed to credit risk except for the financial guarantee carried in Note “X. Related party and relatedtransaction”

2. Liquidity risk

Liquidity risk refers to the risk that a company will run short of funds to meet its obligations settled by delivering

cash or other financial assets.It is the Company’s policy to ensure that sufficient cash is available to meet debt obligations as they fall due.Liquidity risk is centrally controlled by the Company’s finance department. By monitoring cash balances readily

realizable marketable securities and rolling forecasts of cash flows for the next 12 months the finance department

ensures that the company has sufficient funds to service its debts under all reasonable forecasts. 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

The market risk of financial instruments refers to the risk that the fair value or future cash flows of financial

instruments will fluctuate due to changes in market prices including exchange rate risk interest rate risk and other

price risks.

(1) Interest risk

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due

to changes in market interest rates.Interest-bearing financial instruments with fixed rates and floating rates expose the Company to fair value interest

rate risk and cash flow interest rate risk respectively. The Company determines the ratio of fixed interest rate

instruments to floating interest rate instruments according to the market environment and maintains an

appropriate portfolio of fixed and floating interest rate instruments through regular review and monitoring. When

necessary the Company will use interest rate swap instruments to hedge interest rate risk.

182深圳市深粮控股股份有限公司2022年半年度报告全文

(2) Exchange rate risk

Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to

the changes in foreign exchange rates.The Company continuously monitors the foreign currency transactions and the scale of foreign currency assets

and liabilities to minimize foreign exchange risks. In addition the company may also sign forward foreign

exchange contracts or currency swap contracts to avoid exchange rate risks. During the current period and the

previous period the Company did not sign any forward foreign exchange contracts or currency swap contracts.

(3) Other price risk

Other price risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due

to changes in market prices other than exchange rate risk and interest rate risk.Other price risk of the Company arises mainly from investment in various types of equity instruments and is

exposed to the risks of changes in the prices of equity instruments.XI. Disclosure of fair value

1. Ending fair value of the assets and liabilities measured by fair value

Unit: CNY/RMB

Ending fair value

Item

First-order Second-order Third-order Total

I. Sustaining measured

--------

by fair value

(i) Trading financial

1142988.7371205396.2872348385.01

assets

1.Financial assets

measured by fair value

and with variation 1142988.73 71205396.28 72348385.01

reckoned into current

gains/losses

(2) Equity instrument

1142988.731142988.73

investment

(2) Other 71205396.28 71205396.28

Total assets

continuously measured 81142988.73 71262896.28 152405885.01

at fair value

II. Non-persistent

--------

measure

183深圳市深粮控股股份有限公司2022年半年度报告全文

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-

order

3. Valuation technique and qualitative and quantitative information on major parameters for the fair

value measure sustaining and non-persistent on second-order

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

XII. Related party and related transactions

1. Parent company

Ratio of Ratio of voting

Parent company Registration place Business nature Registered capital shareholding on right on the

the Company Company

Investing in

industry

Shenzhen Food

development

Materials Group Shenzhen 5000 million Yuan 63.79% 63.79%

operation and

Co. Ltd

management of

the own property

Explanation on parent company of the enterprise

Ultimate controller of the Enterprise is Shenzhen Municipal People’s Government State-owned Assets

Supervision & Administration Commission。

Other explanation:

2. Subsidiary

Subsidiary of the Company found more in Note IX-Equity in other entity

184深圳市深粮控股股份有限公司2022年半年度报告全文

3. Joint venture and associated enterprise

Important joint venture and associated enterprise of the Company found more in the in Note V-22- Long-term

equity investment

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 with the Enterprise

Other explanation

4. Other related party

Other related party Relationship with the Enterprise

Shenzhen Agricultural Products Group Co. Ltd Holding subsidiary of parent company

Shenzhen Shenliang Cold Transport Co. Ltd. Holding subsidiaries of the Company's associates

Former shareholder of the Company Controlled by the same

Shenzhen Investment Holdings Co. Ltd.ultimate controlling party

Former shareholder of the Company Controlled by the same

Shenzhen Investment Management Co. Ltd.ultimate controlling party

Yao Jicheng Minority shareholder of controlling subsidiary

Subsidiary of the shareholders of the Company Controlled by

Zhanjiang Haitian Aquatic Feed Co. Ltd.the same ultimate controlling party

Shenzhen Higreen International Agricultural Products Logistic

Holding subsidiary of parent company

Management Co. Ltd

Huizhou Higreen Agricultural Products International Logistics

Holding subsidiary of parent company

Co. Ltd.Guangxi Higreen Agricultural Products International Logistics

Holding subsidiary of parent company

Co. Ltd.Shenzhen Shennong Kitchen Co. Ltd Holding subsidiary of parent company

Shenzhen Zhenchu Supply Chain Co. Ltd. Holding subsidiary of parent company

Shenzhen Medical Materials Co. Ltd. Holding subsidiary of parent company

Shenzhen Shennong Land Co. Ltd. Holding subsidiary of parent company

Zhanjiang Changshan (Shenzhen) Ecological Aquaculture Co.Wholly-owned subsidiary of parent company

Ltd

Other explanation

5. Related transaction

(1) Goods purchasing labor service providing and receiving

Goods purchasing/labor service receiving

Unit: CNY/RMB

Related Whether more than

Approved

Related party transaction Current Period the transaction limit Last Period

transaction limit

content (Y/N)

185深圳市深粮控股股份有限公司2022年半年度报告全文

Shenzhen

Warehousing

Shenliang Cold

Services/Transp 114204.50 114204.50 Y 25982.95

Transport Co.ortation services

Ltd.Shenzhen

Information

Shenyuan Data

software 1332904.42 1332904.42 Y 18675417.45

Technology Co.development

ltd.Shenzhen Food

Management

Materials Group 20809.52

service fee

Co. Ltd

Goods sold/labor service providing

Unit: CNY/RMB

Related party Related transaction content Current period Last period

Shenzhen Duoxi Equity

Grain and oil sales tea

Investment Fund 18984.00 11320.74

sales cleaning services

Management Co. Ltd.Shenzhen Agricultural

Grain and oil sales 13870.00

Products Group Co. Ltd

Grain and oil sales

Shenzhen Shenliang Cold

warehousing services tea 5046.48 125643.48

Transport Co. Ltd.sales

Shenzhen Shennong Kitchen

Grain and oil sales tea sales 555498.00 251262.00

Co. Ltd

Shenzhen Shenyuan Data

Grain and oil sales 20080.40

Tech. Co. Ltd

Shenzhen Food Materials Grain and oil sales asset

1465053.6762894.66

Group Co. Ltd management tea sales

Shenzhen Zhenchu Supply Grain and oil sales

11179507.33

Chain Co. Ltd. transportation services

Explanation on goods purchasing labor service providing and receiving

(2) Related trusteeship management/contract & entrust management/ outsourcing

Trusteeship management/contract:

Unit: CNY/RMB

Managed

earnings

Entrusting earnings

Client/Contract Trustee/assets confirmed in

party/Contracto Trustee /start Trustee /ends /pricing of the

-out party contract the period /

r contract

contract

earnings

Related managed/contract:

Entrusted management/outsourcing:

186深圳市深粮控股股份有限公司2022年半年度报告全文

Unit: CNY/RMB

Managed

earnings

Entrusting earnings

Client/Contra Trustee/asset confirmed in

party/Contrac Trustee /start Trustee /ends /pricing of

ct-out party s contract the period /

tor the contract

contract

earnings

Related management/ outsourcing:

(3) Related lease

As a lessor for the Company:

Unit: CNY/RMB

Lease income recognized in Lease income recognized last

Lessee Assets type

the Period Period

Shenzhen Shenyuan Data

Operating site 275094.00

Tech. Co. Ltd

Shenzhen Duoxi Equity

Investment Fund Office space 135996.00

Management Co. Ltd.As lessee:

Unit: CNY/RMB

rental cost for

Variable lease

short-term leases

payment not

and low-value Interest expenses

included in the Right-of-use assets

assets leases with Rental paid assumed on lease

Assets measurement of increased

Lessor simplified liability

type leasing liability (if

processing (if

applicable)

Current Last Current Last Current Last Current Last Current Last

Period Period Period Period Period Period Period Period Period Period

Explanation on related lease

(4) Related guarantee

As guarantor

Unit: CNY/RMB

Whether the guarantee

Secured party Guarantee amount Guarantee start date Guarantee expiry date

has been fulfilled

Changzhou Shenbao

Chacang E-business 3500000.00 December 20 2011 No

Co. ltd.As secured party

Unit: CNY/RMB

Guarantor Guarantee amount Guarantee start date Guarantee expiry date Whether the guarantee

187深圳市深粮控股股份有限公司2022年半年度报告全文

has been fulfilled

Explanation on related guarantee

(5) Related party’s borrowed funds

Unit: CNY/RMB

Related party Borrowing amount Starting date Maturity date Note

Borrowing

Lending

(6) Related party’s assets transfer and debt reorganization

Unit: CNY/RMB

Related party Related transaction content Current Period Last Period

(7) Remuneration of key manager

Unit: CNY/RMB

Item Current Period Last Period

(8) Other related transaction

6. Receivable and payable of related party

(1) Receivable item

Unit: CNY/RMB

Ending balance Opening balance

Item Related party

Book balance Bad debt provision Book balance Bad debt provision

Account

receivable

Shenzhen

Shenliang Cold 104263.95 1149.36 116476.25 1149.36

Transport Co. Ltd.Shenzhen

Shennong Kitchen 143430.00 1152.08 115208.00 1152.08

Co. Ltd

Shenzhen Food

Materials Group 19856.00 286.32 28632.00 286.32

Co. Ltd

Shenzhen

Agricultural

2790.00

Products Group

Co. Ltd

188深圳市深粮控股股份有限公司2022年半年度报告全文

Guangxi Higreen

Agricultural

Products 18624.00 186.24

International

Logistics Co. Ltd.Huizhou Higreen

Agricultural

Products 18624.00 37248.00 372.48

International

Logistics Co. Ltd.Shenzhen

Shennong Land 14744.00 147.44

Co. Ltd.Shenzhen Medical

2328.0023.28

Materials Co. Ltd.Shenzhen Zhenchu

Supply Chain Co. 4795268.91 58748.80 5874880.36 58748.80

Ltd.Shenzhen

Shenyuan Data 5940.00 59.40

Tech. Co. Ltd

Other account

receivable

Shenzhen

Shenliang Cold 10000.00

Transport Co. Ltd.Shenzhen Higreen

International

Agricultural

50000.0050000.00

Products Logistic

Management Co.Ltd

Zhanjiang

Changshan

(Shenzhen)

5520.005520.005520.005520.00

Ecological

Aquaculture Co.Ltd

Shenzhen

Shenyuan Data 57000.00 300.00 30000.00 300.00

Tech. Co. Ltd

Changzhou

Shenbao Chacang 24608742.46 22187644.18 24608742.46 22187644.18

E-business Co.

189深圳市深粮控股股份有限公司2022年半年度报告全文

ltd.Shenzhen

Shichumingmen

Catering 2092477.67 990192.72 2092477.67 990192.72

Management Co.Ltd.Shenzhen

Investment 415644.52 415644.52

Holdings Co. Ltd.Shenzhen Food

Materials Group 1001000.00 1000.00

Co. Ltd

Yao Jicheng 46985.88 480.00 48000.00 480.00

(2) Payable item

Unit: CNY/RMB

Item Related party Ending book balance Opening book balance

Dividend payable

Shenzhen Investment

2690970.142690970.14

Management Co. Ltd.Accounts payable

Shenzhen Shenyuan Data

485080.53

Tech. Co. Ltd

Other account payable

Shenzhen Shenliang Cold

2790.00102790.00

Transport Co. Ltd.Shenzhen Food Materials

146173941.72146162941.72

Group Co. Ltd

Zhanjiang Changshan

(Shenzhen) Ecological 8030954.17

Aquaculture Co. Ltd

Shenzhen Duoxi Equity

Investment Fund 41486.00

Management Co. Ltd.Shenzhen Shichumingmen

Catering Management Co. 209275.00

Ltd.Shenzhen Investment

3510297.20

Management Co. Ltd.Shenzhen Shenyuan Data

561200.002000330.53

Tech. Co. Ltd

Zhanjiang Haitian Aquatic

20000.00

Feed Co. Ltd.

190深圳市深粮控股股份有限公司2022年半年度报告全文

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

XIV. Commitment or contingency

1. Important commitments

Important commitments on balance sheet date

The Company has no important commitments that need to disclosed up to 30 June 2022.

2. Contingency

(1) Contingency on balance sheet date

1.1 Lawsuits

(1) The sales and purchase contract disput between Hualian Company and Zhuhai Doumen Huabi Trading Co.

Ltd

Concerning the Hualian Company (plaintiff) bring a suit against Zhuhai Huabi (defendant) the People’s Court of

Shenzhen Luohu District has made the first instance effective judgment in 2007: 1. The defendant should repay

the plaintiff payment for goods of 2396300 yuan; 2. The defendant should pay the plaintiff liquidated damages of

239600 yuan; 3. Court acceptance fee of 33200 yuan should be borne by the defendant.

In 2005 Zhuhai Huabi stopped production and its legal representative was arrested by the public security organs.

191深圳市深粮控股股份有限公司2022年半年度报告全文

It was found that Zhuhai Huabi had been cancelled.As of the date of the audit report Hualian Company has set aside 100.00% of bad debt reserves for the receivables

of 2396300 yuan from Zhuhai Huabi.

(2) Disputes over import agency contract among SZCG Hualian Company and Guangzhou Jinhe Feed Co. Ltd.

Huang Xianning

In the case of the plaintiff SZCG and Hualian Company versus the defendant Guangzhou Jinhe and Huang

Xianning over the import and export agency contract disputes the Futian District People’s Court made the first-

instance judgment in 2015: 1. The defendant Guangzhou Jinhe should pay a total of 10237400 yuan to SZCG

and Hualian Company within 10 days from the effective date of the judgment; 2. If it fails to perform its

pecuniary obligations within the period specified by the judgment it shall pay double the interest on the debt for

the delayed in performance in accordance with Article 253 of the Civil Procedure Law of the People’s Republic of

China; 3. The case acceptance fee of 83200 yuan shall be borne by Guangzhou Jinhe.As Guangzhou Jinhe dissatisfied with the above-mentioned first-instance judgment it appealed to the Shenzhen

Intermediate People's Court. On March 30 2017 the Shenzhen Intermediate People's Court issued a second-

instance judgment which rejected the appeal of Guangzhou Jinhe and upheld the original judgment. Subsequently

SZCG and Hualian Company applied to the Court of first instance for the enforcement.As of the date of the audit report the case is currently still being executed and the other party has not paid any

money. SZCG has made a provision for bad debts at a rate of 100.00% for the receivable payment of 10455600

yuan from Guangzhou Jinhe.According to the "Letter of Commitment from Shenzhen Fude State Capital Operation Co. Ltd. on the Pending

Litigation of Shenzhen Cereals Group Co. Ltd." Shenzhen Fude State Capital Operation Co. Ltd. (now renamed

Shenzhen Food Materials Group Co. Ltd.) will bear the compensation or losses caused by the lawsuit on its

behalf for any claims compensation losses or expenditures caused by the disputes over import agency contract

among SZCG and its holding subsidiaries with Guangzhou Jinhe and Huang Xianning.

(3) Contract disputes between Hualian Company and Foshan Shunde Huaxing Feed Factory

In August and October 2007 Hualian Company sold products to Huaxing Feed Factory and received commercial

acceptance bills totaling 2958600 yuan. Due to the company’s failure to repay the overdue payment Hualian

Company filed a lawsuit with the Shunde District People’s Court of Foshan City on October 29 2007 requesting

Huaxing Feed Factory to repay the payment and pay the corresponding interest. From June to July 2011 a total of

1638900 yuan of the company’s bankruptcy assets was recovered. As of the date of the audit report Hualian

Company had a receivable payment of 1319700 yuan from Huaxing Feed Factory. This amount has been

withdrawn bad debt reserves by 100.00%.

192深圳市深粮控股股份有限公司2022年半年度报告全文

(4) Mung bean business disputes between SZCG and Jilin Tongyu County Shengda Company

On August 26 2010 the Shenzhen Futian District People’s Court accepted the case of the plaintiff SZCG versus

the defendant Shengda Company over an entrustment contract dispute. Upon mediation both parties reached a

mediation agreement voluntarily: 1. It’s confirmed that the defendant Shengda Company still owes the plaintiff

SZCG the repurchase payment of 7.492 million yuan and the repurchase payment interest of 2.8 million yuan

before September 3 2009. 2. The defendant Shengda Company should pay the first installment of 1 million yuan

to the plaintiff SZCG before October 30 2010 and should pay 1 million yuan at the end of each month from

November 2010 to March 2011 and should pay 492000 yuan before the end of April. 2011 totaling 6492000

yuan. 3. If the defendant Shengda Company can pay the above amount in full and on schedule it does not need to

pay the remaining principal of 1 million yuan and the interest of 2.8 million yuan. If any of the above sums are not

paid in full and on schedule the plaintiff may apply to the court for enforcement of all the claims set out in the

first item above.After the mediation agreement came into effect Shengda Company did not fully fulfill its repayment obligations

and SZCG has applied for compulsory execution. As of the date of the audit report the book receivables

amounted to 5602500 yuan and the execution of the remaining amounts was highly uncertain the Company has

fully made provisions for bad debts of 5602500 yuan for this payment.

(5) Contract disputes of the Company’s subsidiaries Shenbao Rock Tea Jufangyong Holdings Mount Wuyi

Jiuxing Tea Co. Ltd. Fujian Wuyishan Yuxing Tea Co. Ltd. Xingjiu Tea Co. Ltd. and Chen Yuxing Chen

Guopeng

On December 3 2018 due to the separation contract dispute based on the arbitration clause in the original

Formal Agreement Regarding the Separation of Fujian Wuyishan Shenbao Yuxing Tea Co. Ltd. the arbitration

applicants Shenbao Rock Tea and Jufangyong Holdings filed an arbitration with the Shenzhen Court of

International Arbitration with Jiuxing Company Yuxing Company Xingjiu Tea Co. Ltd. Chen Yuxing and

Chen Guopeng as the respondents requesting: 1. To rule that the respondent Jiujiuxing Company should pay

5272900 yuan and liquidated damages of 1581900 yuan to the applicant Shenbao Rock Tea totaling 6854800

yuan; 2. To rule that the respondents Yuxing Company Xingjiu Company Chen Yuxing and Chen Guopeng

shall be jointly and severally liable for the above-mentioned receivables and liquidated damages to the applicant

Rock Tea; 3. To rule that the respondent Yijiuxing Company shall pledge 19 designated trademarks to the

applicant Jufangyong Holdings and cooperate with the corresponding registration procedures for trademark

pledge; 4. To rule that all the respondents shall bear the attorney’s fee of 190000 yuan paid by the applicant for

this case the preservation fee and other expenses incurred in this arbitration (the applicant reserves the right to

pursue the remaining attorney’s fees); 5. To rule that the respondents shall bear all arbitration fees in this case.On April 18 2019 the Shenzhen Court of International Arbitration held a hearing for the arbitration case. On May

20 2021 the Shenzhen Court of International Arbitration issued a ruling that: 1. Wuyishan Jiuxing Tea Co. Ltd.

should compensate Jufangyong Company and Shenbao Rock Tea Company for losses of receivables and

193深圳市深粮控股股份有限公司2022年半年度报告全文

liquidated damages of 4798369.95 yuan; 2. Fujian Wuyishan Yuxing Tea Co. Ltd. Xingjiu Tea Co. Ltd. Chen

Yuxing and Chen Guopeng shall be jointly and severally liable for the above payment obligations of Wuyishan

Jiuxing Tea Co. Ltd.; 3. The arbitration fee in this case of 104953 yuan shall be paid by the five respondents to

the two applicants; 4. Two arbitrators’ expenses of 4000 yuan shall be paid directly by the five respondents to the

two applicants.After the arbitration award came into effect because the respondents refused to repay the applicants applied to

the court for enforcement. On August 5 2021 the two parties signed an enforcement of settlement agreement.The respondents should pay receivables liquidated damages attorney’s fees and arbitration fees to the applicants

totaling 5097322.95 yuan payment shall be made in 18 installments with the respondents paying 1.6 million

yuan in the first installment and paying 200000 yuan per month thereafter and the final payment is 297322.95

yuan (i.e. the payment will be completed before January 31 2023).As of the date of the audit report the applicants received a total of 3.8 million yuan.

(6) Sales contract disputes between Hualian Company and Dalian Liangshuntong Supply Chain Management Co.

Ltd.

1) In the case of the plaintiff Liangshuntong Company versus the defendant Hualian Company over a sales

contract dispute ([2019] Yue 0304 Min Chu No. 49562) the Futian District People’s Court made a first-instance

civil judgment on July 3 2020 that: 1. The plaintiff Liangshun Tongtong Company shall pay Hualian Company

595800 yuan within ten days from the effective date of this judgment; 2. Reject the claims of Liangshuntong

Company; 3. Reject other counterclaims of Hualian Company; 4. The plaintiff Liangshuntong Company shall

prepay the litigation fee of 208900 yuan which shall be borne by the plaintiff and the defendant Hualian

Company shall prepay the counterclaim acceptance fee of 113000 yuan of which 1800 yuan shall be borne by

the plaintiff and 111200 yuan shall be borne by the defendant. After receiving the judgment the plaintiff

Liangshuntong refused to accept it and appealed to the Shenzhen Intermediate People’s Court. The Shenzhen

Intermediate People’s Court made a final ruling on October 29 2021 and the ruling is as follows: rejecting the

appeal and upholding the original judgment. Hualian Company filed an enforcement application with Shenzhen

Futian People’s Court in December 2021. In May 2022 Futian People's Court issued the Execution Ruling (2021)

Yue 0304 Zhi No.37136 since the person subject to execution currently has no property available for execution it

ruled that the enforcement procedures should be terminated; where the applicant for execution finds the person

subject to execution has property available for execution the applicant can apply for execution again.

2) In the case of the plaintiff Hualian Company versus the defendant Liangshuntong Company over a contract

dispute (Case No. [2020] Yue 0304 Min Chu No. 2824) the Futian District People’s Court delivered the Civil

Judgment of the first instance on December 31 2020 ruling that 1. The defendant Liangshuntong Company shall

pay Hualian Company advance fees of 461900 yuan and capital cost of 4030000 yuan within ten days from the

effective date of the judgment; 2. Liangshuntong Company shall pay the capital occupation fee (based on 461900

yuan with an annual interest rate of 10.00% calculating from December 11 2019 to the date of paying off the full

194深圳市深粮控股股份有限公司2022年半年度报告全文

amount) to Hualian Company within ten days from the effective date of the judgment; 3. Case acceptance fee of

42700 yuan shall be borne by the defendant Liangshuntong Company. Liangshuntong appealed to the Shenzhen

Intermediate People’s Court on January 22 2021. The Shenzhen Intermediate People’s Court made a final ruling

on November 9 2021 and the ruling is as follows: rejecting the appeal and upholding the original judgment.Hualian Company filed an enforcement application with Shenzhen Futian People's Court in December 2021. In

May 2022 Futian People's Court issued the Execution Ruling (2021) Yue 0304 Zhi No. 37314 since the person

subject to execution currently has no property available for execution it ruled that the enforcement procedures

should be terminated; where the applicant for execution finds the person subject to execution has property

available for execution the applicant can apply for execution again.

(7) Disputes over construction engineering contract between Heilongjiang Hongxinglong Farms & Land

Reclamation Shenxin Grain Industrial Park Co. Ltd. and Heilongjiang Zhishengda Construction Engineering Co.Ltd.In April 2020 Zhishengda Company filed a lawsuit with Hongxinglong People’s Court of Heilongjiang Provincewith Hongxinglong as the defendant requesting: 1. To confirm that the “Letter on Rectification of CompletedProjects and Cancellation of Not Constructed Projects” issued by Hongxinglong on April 7 2020 does not have

the effect of terminating the contract the rescission contract made by it is invalid and judge that the defendant

Hongxinglong should continue to perform the contract (the project cost required to perform the contract is

5137800 yuan). 2. The litigation fee and other legal costs shall be borne by Hongxinglong.

On July 29 2020 Hongxinglong filed a counterclaim with the first-instance court requesting the court: 1. To

confirm the validity of the cancellation of the construction contract between Hongxinglong and Zhishengda in

accordance with the law. 2. To rule that the Zhishengda should pay Hongxinglong liquidated damages of

1003200 yuan of which liquidated damages for overdue completion of the project of 253200 yuan repair costs

for unqualified project quality of about 240000 yuan (the specific amount is to be determined by a third party)

liquidated damages for project manager’s absence from the construction site without permission of 500000 yuan

liquidated damages for the migrant worker’s collective petitions of 10000 yuan. 3. The counterclaim fee and

appraisal fee shall be borne by Zhishengda.On March 16 2021 the third-party appraisal agency applied by Zhishengda Company conducted an on-site

survey and conducted on-site appraisal for the engineering quantities. In July 2021 Hongxinglong went to the

Heilongjiang Farms & Land Reclamation Intermediate People’s Court to determine the third-party appraisal

agency (Heilongjiang Yage Construction Engineering Management Consulting Co. Ltd. now renamed Zhongyun

Project Management Co. Ltd.) to appraise the cost of project restoration. On September 22 Hongxinglong paid

20000 yuan for the appraisal. On October 27 2021 Zhongyun Project Management Co. Ltd. came to the site for

appraisal. On March 9 2022 the first-instance trial was held and the lawyers of both parties conducted cross-

examination but the third-party appraiser did not appear in court due to the impact of the pandemic so it is

195深圳市深粮控股股份有限公司2022年半年度报告全文

planned to choose another day for the trial. On May 19 2022 Heilongjiang Zhishengda Construction Engineering

Co. Ltd. submitted the Application for Clear Claims which increased the amount of claims by 1252101.36

yuan on the basis of the original request of 5424480.86 yuan.

(8) Contract disputes between Hangzhou Jufangyong Commercial and Trading Co. Ltd. and Hangzhou Xingfu

Feixiang Commercial and Trading Co. Ltd.In July 2020 the plaintiff Hangzhou Jufangyong Commercial and Trading Co. Ltd. filed a lawsuit with Xiaoshan

Primary People’s Court Hangzhou against Hangzhou Xingfu Feixiang Commercial and Trading Co. Ltd. as the

defendant requesting to order: 1. The defendant to pay a total of 2454700 yuan for cooperative use fees and

water and electricity fees 2. The defendant to pay the western restaurant’s cooperative use fee of 699700 yuan

and water and electricity fees (according to the actual amount) from July 1 2019 to September 10 2019; 3. The

defendant to pay liquidated damages of 515300 yuan; 4. The defendant to pay liquidated damages (from April 16

2020 to the date of repayment with a base of 3154400 yuan and a monthly interest rate of 2%); 5. The defendant

to bear the litigation costs in this case.Xiaoshan Primary People’s Court Hangzhou ruled that Hangzhou Xingfu Feixiang Commercial and Trading Co.Ltd. entered bankruptcy proceedings and appointed an administrator in August 2020 it ruled to suspend the trial

of the case requiring the plaintiff to declare its claims directly to the administrator. On December 23 2020 the

Xiaoshan Primary People’s Court resumed the hearing of the case the administrator issued a claim confirmation

sheet and calculation details confirming the plaintiff’s claim principal of 2422494.80 yuan and interest of

166000.00 yuan totaling 2588494.80 yuan.

(9) Disputes over sales contract between Hangzhou Jufangyong Holdings Co. Ltd. and Hangzhou Jufangyong

Commercial and Trading Co. Ltd.On September 7 2021 the plaintiff Hangzhou Jufangyong Holdings Co. Ltd. Sued Hangzhou Jufangyong

Commercial and Trading Co. Ltd. as the defendant to the Hangzhou Binjiang District People’s Court requesting

to order: 1. The defendant to immediately pay the payment of 2816266.50 yuan; 2. The defendant to bear the

litigation costs in this case.On October 29 2021 Hangzhou Jufangyong Holdings Co. Ltd. and Hangzhou Jufangyong Commercial and

Trading Co. Ltd. reached a pre-litigation mediation and Hangzhou Jufangyong Commercial and Trading Co. Ltd.paid 2.816 million yuan to Hangzhou Jufangyong Holdings Co. Ltd. and paid off before November 30 2021.On December 8 2021 Hangzhou Binjiang District People’s Court issued a civil ruling paper ruling that the

mediation agreement reached by Hangzhou Jufangyong Holdings Co. Ltd. and Hangzhou Jufangyong

Commercial and Trading Co. Ltd. on October 29 2021 is valid and the parties shall consciously perform their

obligations in accordance with the provisions of the mediation agreement. If one party refuses to perform or fails

196深圳市深粮控股股份有限公司2022年半年度报告全文

to perform all of its obligations the other party can apply to the people’s court for enforcement.On December 29 2021 Hangzhou Binjiang District People’s Court accepted the enforcement application of

Hangzhou Jufangyong Holdings Co. Ltd.On March 4 2022 Hangzhou Jufangyong Holdings Co. Ltd. submitted an application for “transfer ofenforcement to bankruptcy” to Hangzhou Intermediate People’s Court.

(10) Disputes over private lending between Shenzhen Shenshenbao Tea Culture Commercial Management Co.

Ltd. and Shenzhen Shi Chu Ming Men Catering Management Co. Ltd.On May 31 2021 the plaintiff Shenzhen Shenshenbao Tea Culture Commercial Management Co. Ltd. filed a

lawsuit with Shenzhen Nanshan District People’s Court against Shenzhen Shi Chu Ming Men Catering

Management Co. Ltd. as the defendant requesting to order: 1. The defendant to return the principal of 1183000

yuan borrowed from the plaintiff; 2. The defendant to pay the interest on borrowings of 171250.68 yuan to the

plaintiff; 3. The defendant to bear the litigation costs in this case.On December 1 2021 the court made a judgment in support of all the claims of Shenzhen Shenshenbao Tea

Culture Company.On January 20 2022 Nanshan Court accepted the enforcement application of Shenzhen Shenshenbao Tea Culture

Company.On April 27 2022 Nanshan District People's Court ruled that the enforcement procedures should be terminated.Where the applicant for execution finds the person subject to execution has property available for execution the

applicant can apply for execution again.On April 28 2022 Shenzhen Shi Chu Ming Men Catering Management Co. Ltd. submitted an application for

bankruptcy review of enforcement case to the Nanshan District People's Court.

(11) Disputes over special operating contract between Shanghai Baoyan Catering Co. Ltd. and Hangzhou

Fuhaitang Catering Management Chain Co. Ltd.On July 22 2021 the plaintiff Shanghai Baoyan Catering Co. Ltd. filed a lawsuit with Hangzhou Binjiang

District People’s Court against Hangzhou Fuhaitang Catering Management Chain Co. Ltd. as the defendant

requesting: 1. To cancel the Regional Agency Authorized Operating Agreement signed by the plaintiff and the

defendant; 2. The defendant to return the regional agency cooperation fee of 1880000 yuan and the cooperation

deposit of 80000 yuan to the plaintiff a total of 1960000 yuan; 3. The defendant to pay the liquidated damages

of 100000 yuan to the plaintiff; 4. The defendant to pay the attorney fee of 50000 yuan to the plaintiff; 5. The

defendant to bear the litigation fee in this case.The Hangzhou Binjiang District People’s Court issued a subpoena on February 11 2022 confirming that the case

197深圳市深粮控股股份有限公司2022年半年度报告全文

number was (2021) Zhe 0108 Min Chu No. 5890 and the court date set for March 17 2022.On May 18 2022 Hangzhou Binjiang District People's Court made a first-instance judgment ruling that

Hangzhou Fuhaitang Catering Management Chain Co. Ltd. should return Shanghai Baoyan Catering Co. Ltd. the

agency cooperation fund of 880000 yuan and bear the litigation fee of 12580 yuan and Shanghai Baoyan

Catering Co. Ltd. bear litigation fee of 13050 yuan. Both Hangzhou Fuhaitang Catering Management Chain Co.Ltd. and Shanghai Baoyan Catering Co. Ltd. refused to accept the first-instance judgment and appealed to the

Hangzhou Intermediate Court. The date of the court case has not yet been determined.

(12) Sales contract disputes between Shuangyashan Shenliang Grain Base Co. Ltd. and Shanghai Zexi Industrial

Co. Ltd.On October 18 2021 the plaintiff Shuangyashan Shenliang Grain Base Co. Ltd. filed a lawsuit with the Shanghai

Putuo District People’s Court with Shanghai Zexi Industrial Co. Ltd. as the defendant requesting: 1. The

defendant to immediately issue and deliver a special VAT invoice amounting 25.2 million yuan for the payment

of goods to the plaintiff; if the defendant cannot issue the invoice it shall need to compensate the plaintiff for the

tax deduction loss of 2899115.04 yuan; 2. The defendant to compensate the plaintiff for the failure of the

defendant to issue invoices resulting in the plaintiff paying a late fee of 137376.63 yuan to the tax bureau; 3. The

defendant to compensate the plaintiff for travel expenses loss of 10860.61 yuan; 4. The defendant to bear the

litigation costs of this case. A court date has not yet been set.Shanghai Zexi raised an objection to jurisdiction on January 17 2022 Shanghai Putuo District People's Court

made a civil ruling (2021) Hu 0107 Min Chu No. 31846: rejecting the objection to jurisdiction raised by the other

party. Shanghai Zexi refused to accept the ruling and appealed to the Shanghai No. 2 Intermediate People's Court.On March 22 2022 Shanghai No. 2 Intermediate People's Court issued a civil ruling (2022) Hu 02 Min Xia

Zhong No. 176: the appeal was rejected and the original ruling was upheld.

(13) Sales contract disputes between Shuangyashan Shenliang Grain Base Co. Ltd. and Tongliao Fada Grain

Purchase and Storage Co. Ltd.On November 26 2021 the plaintiff Tongliao Fada Grain Purchase and Storage Co. Ltd. filed a lawsuit with

Keerqin District People’s Court of Tongliao City Inner Mongolia Autonomous Region with Shuangyashan

Company as the defendant requesting: 1. To cancel the six purchase contracts signed with Shuangyashan

Company; 2. Shuangyashan Company to return the corn purchase payment of 25.2 million yuan; 3. Shuangyashan

Company to pay the interest on occupation of funds of 4713603.11 yuan (tentatively until November 1 2021); 4.Shuangyashan Company to bear the litigation costs of this case.Shuangyashan Company filed an objection to jurisdiction with Keerqin District People’s Court of Tongliao City

Inner Mongolia Autonomous Region. On March 24 2022 Keerqin District People’s Court of Tongliao City Inner

Mongolia Autonomous Region made a ruling that Shuangyashan Company’s objection to jurisdiction was

198深圳市深粮控股股份有限公司2022年半年度报告全文

established and the case was transferred to the People’s Court of Baoqing County Shuangyashan City

Heilongjiang Province. On April 1 2022 Tongliao Fada Grain Purchase and Storage Co. Ltd. filed an appeal

with Tongliao Intermediate People’s Court requesting to revoke the ruling on the objection to jurisdiction.

(14) Project construction contract disputes between Wuhan Jiangxia Yijian Construction Engineering Co. Ltd.

and Wuhan Jiacheng Biological Products Co. Ltd.

1) On January 10 2022 the plaintiff Wuhan Jiangxia Yijian Construction Engineering Co. Ltd. filed a lawsuit

with Jiangxia District People’s Court of Wuhan City against Wuhan Jiacheng Biological Products Co. Ltd. as the

defendant requesting: 1. The defendant to immediately pay the project money of 4421888.97 yuan owed to the

plaintiff ; 2. The defendant to pay liquidated damages (based on the arrears of the project payment of 4421888.97

yuan and calculated at an annual interest rate of 15.4% from October 10 2019 to the date of payment and

temporarily calculated to be 1514927 yuan until December 30 2021) for the delayed payment of the project

payment to the plaintiff. The above two items add up to 5936815 yuan. 3. The defendant to bear all expenses of

the case including litigation fee appraisal fee and preservation fee.The plaintiff applied for property preservation (the preservation amount was more than 5.9 million yuan) and the

Jiangxia District Court ruled to freeze all bank accounts of Wuhan Jiacheng Biological Products Co. Ltd.The Jiangxia District People’s Court of Wuhan City set the court date as February 28 2022 and the case number

is (2022) E 0115 Min Chu No. 182.

2) On February 25 2022 the counterclaim plaintiff Wuhan Jiacheng Biological Products Co. Ltd. filed a

counterclaim against Wuhan Jiangxia Yijian Construction Engineering Co. Ltd. as the counterclaim defendant

requesting: 1. To confirm that the Hubei Province Construction Project Contract with the project cost of

25965136.97 yuan signed by the plaintiff and the defendant on July 4 2017 for the Jiacheng Bio-Industrial Park

Construction Project (Phase I) is invalid; 2. To order the defendant of the counterclaim to submit the complete

completion data and completion report to the plaintiff of the counterclaim and assist in handling the completion

acceptance of the project and the relevant procedures for archiving and filing the engineering data in the urban

construction archives; 3. To compensate for the losses (from April 1 2018 to October 25 2019 calculated at

1000 yuan per day; from October 26 2019 to the date of acceptance and delivery of project with 21543248

yuan as the base calculated according to the quoted interest rate of the loan market for the same period announced

by the National Interbank Funding Center and it’s about 2.3 million yuan calculated to the date of indictment)

caused to the plaintiff due to the delayed delivery of the Wuhan Jiacheng Bio-Industrial Park Construction Project

(Phase I); 4. To bear the litigation fees preservation fees and other expenses for the counterclaim.On July 6 2022 Jiangxia District People's Court of Wuhan City made a judgment:

1. The defendant Wuhan Jiacheng Biotechnology Co. Ltd. shall pay 4421888.97 yuan to the plaintiff Wuhan

Jiangxia Yijian Construction Engineering Co. Ltd. within ten days after this judgment takes effect;

199深圳市深粮控股股份有限公司2022年半年度报告全文

2. The defendantWuhan Jiacheng Biotechnology Co. Ltd. shall pay the plaintiff Wuhan Jiangxia No.1

Construction Engineering Co. Ltd. liquidated damages (based on 4421888.97 yuan calculating from September

19 2020 to the completion of the performance by 1.3 times LPR) within ten days after this judgment takes effect ;

3. The plaintiff Wuhan Jiangxia Yijian Construction Engineering Co. Ltd. shall have priority to be compensated

for the discount or auction price of the above-mentioned projects undertaken by it within the scope of item 1 and

item 2 of the above judgment;

4. The counterclaim defendant Wuhan Jiangxia Yijian Construction Engineering Co. Ltd. shall submit complete

completion materials and completion reports to the counterclaim plaintiff Wuhan Jiacheng Biotechnology Co.Ltd. within ten days after the judgment takes effect and assist in the completion acceptance of the project and the

related procedures for filing engineering data in the Urban Construction Archives;

5. Reject other claims of the plaintiff Wuhan Jiangxia Yijian Construction Engineering Co. Ltd.;

6. Reject other claims of the counterclaim plaintiff Wuhan Jiacheng Biotechnology Co. Ltd..

Where the payment obligation is not fulfilled within the period as specified in this judgment the debt interest

during the period of delayed performance shall be doubled in accordance with Article 260 of the Civil Procedure

Law of the People's Republic of China.The litigation fee is 53358 yuan the counterclaim acceptance fee is 12600 yuan and the preservation fee is

5000 yuan totaling 70958 yuan. The plaintiff Wuhan Jiangxia Yijian Construction Engineering Co. Ltd. shall

pay 2000 yuan and the defendant Wuhan Jiacheng Biotechnology Co. Ltd. shall pay 68958 yuan.On July 16 2022 Wuhan Jiacheng Biotechnology Co. Ltd. appealed to the Wuhan Intermediate People's Court.

(15) Disputes over loan contract between Changzhou Shenbao Tea-Shop E-commerce Co. Ltd. and Shenzhen

Agricultural Products Financing Guarantee Co. Ltd.On July 15 2016 the Agricultural Products Guarantee Company submitted a Civil Complaint to Shenzhen Futian

District People’s Court requesting to order: 1. Changzhou Company to repay the loan principal of 5000000.00

yuan and the interest of 389968.52 yuan and the penalty interest of 3200271.79 yuan (The penalty interest is

temporarily calculated until June 30 2016 and actually calculated to the date when the loan is fully paid); 2.Changzhou Company to pay compensation of 100000.00 yuan (5000000 yuan × 2%); totaling 8690240.31

yuan; 3. Shenzhen Shenbao Industrial Co. Ltd. (hereinafter referred to as “Shenbao Company”)to be jointly and

severally liable for the loan of 5000000.00 yuan.Shenzhen Futian District People’s Court issued a first-instance judgment on May 31 2017 ruling that Changzhou

Company should repay the loan principal of 5 million yuan and interest of 353871.28 yuan and interest penalty

200深圳市深粮控股股份有限公司2022年半年度报告全文

(interest penalty is based on 5 million yuan as the principal calculated from September 7 2013 to the date of

actual repayment at an annual rate of 21.6%. If the repayment is made in installments the interest of

corresponding part will be calculated to the date of each repayment) to the plaintiff Agricultural Products

Guarantee Company within 10 days from the effective date of the judgment and Changzhou Company shall bear

the lawyer’s fee of 71911 yuan and the preservation fee of 5000 yuan; the judgment rejected the request of the

Agricultural Products Guarantee Company’s request Shenbao Company to bear joint and several liability.Agricultural Products Guarantee Company refused to accept the first-instance judgment and filed an appeal to the

Shenzhen Intermediate People’s Court. On May 10 2019 the Shenzhen Intermediate People’s Court served the

civil judgment (final judgment) and the Shenzhen Intermediate Court made some changes to the first-instance

judgment ruling that Shenbao Company (now renamed Shenzhen Cereals Holdings Co. Ltd.) shall be jointly and

severally liable for the debts of Changzhou Company within the range of 3.5 million yuan; Shenbao Company

(now renamed as Shenzhen Cereals Holdings Co. Ltd.) has the right to recover from Changzhou Company after

paying off the debts on its behalf.In May 2021 Agricultural Products Guarantee Company applied to Futian District Court of the first instance for

compulsory execution of 5193443 yuan. According to the request of the court Changzhou Company declared

the property status to the court. Agricultural Products Guarantee Company reached a voluntary settlement with

Changzhou Company and SZCH. On October 20 2021 Futian Court issued an enforcement ruling to terminate

the enforcement of the case.

(16) Hangzhou International Airport Co. Ltd. filed a lawsuit against Hangzhou Jufangyong Trading Co. Ltd.

concerning housing leasing contract disputes

Hangzhou International Airport Co. Ltd. filed a lawsuit with the Xiaoshan Primary People's Court Hangzhou

Zhejiang against Hangzhou Jufangyong Trading Co. Ltd. as the defendant requesting: 1. to order the defendant

to pay the remaining outstanding payment from April 2019 to September 10 2019 in total of 1064613.34 yuan. 2.to order the defendant to pay overdue liquidated damages of 4908976.281 yuan (tentatively until December 31

2021) due to overdue payment of rent and other expenses. 3. to order the defendant to pay 455880 yuan of

liquidated damages for termination of contract. 4. to order the defendant to pay the housing occupancy and use

fees from September 11 2019 to November 11 2019 totaling 486552.6733 yuan; 5. to order the defendant to

bear the litigation fee of this case. (The above item 1 to item 5 amount to 6916022.29 yuan temporarily).Xiaoshan Primary People's Court issued a civil judgment on April 6 2022 ruling that Hangzhou Jufangyong

Trading Company should pay Hangzhou International Airport Co. Ltd. rent property fees POS machine rental

fees liquidated damages and housing occupancy and use fees totaling approximately 2007046 yuan and bear

the litigation fee of 13038 yuan. Hangzhou International Airport Co. Ltd. should bear the litigation fee of 17038

yuan.

201深圳市深粮控股股份有限公司2022年半年度报告全文

On April 20 2022 Hangzhou Jufangyong Trading Co. Ltd. filed an appeal to the Hangzhou Intermediate

People's Court. On June 14 2022 the court held a hearing on the case and as of the date of the audit report no

judgment has been made.

(17) Hangzhou International Airport Co. Ltd. filed a lawsuit against Hangzhou Jufangyong Holdings Co. Ltd.

and Hangzhou Jufangyong Trading Co. Ltd. concerning housing lease contract disputes

On December 1 2021 Hangzhou International Airport Co. Ltd. filed a lawsuit with Xiaoshan Primary People's

Court against Hangzhou Jufangyong Holding Co. Ltd. and Hangzhou Jufangyong Trading Co. Ltd. as defendants

requesting: 1. to order the two defendants to pay the outstanding payments 62486.66 yuan; 2. to order Hangzhou

Jufangyong Holdings Co. Ltd. To pay overdue liquidated damages of 265255.87 yuan (tentatively until

December 31 2021); 3. to order Hangzhou Jufangyong Holdings Co. Ltd. To pay 1372500 yuan of liquidated

damages for termination of contract; 4. to order Hangzhou Jufangyong Holdings Co. Ltd. to pay a total of

362422.67 yuan for the housing occupancy and use fees; 5. to order Hangzhou Jufangyong Holdings Co. Ltd. to

pay the plaintiff a loss of 50189.90 yuan for the difference in rent; 6. to order the two defendants to bear the

litigation fee and preservation fee of this case. (The above item 1 to item 5 amount to 2112855.10 yuan)

On April 13 2022 Hangzhou Jufangyong Holdings Co. Ltd. filed a counterclaim requesting: 1. Hangzhou

International Airport Co. Ltd. to refund the full performance bond of 457500 yuan; 2. Hangzhou International

Airport Co. Ltd. To pay liquidated damages of 457500 yuan; 3. Hangzhou International Airport Co. Ltd. to bear

the litigation fee. (The above item 1 and item 2 amount to 915000 yuan)

Xiaoshan Primary People's Court held a hearing on the case on April 28 2022 and no judgment has been made

yet.

(18) Xu Anwu filed a lawsuit against Dongguan Shenliang Logistics Co. Ltd. Gansu Installation and

Construction Group Co. Ltd. Guangdong Dianbai Building Group Co. Ltd. and Xu Jianqiang concerning

construction project subcontract disputes

On March 17 2021 the plaintiff Xu Anwu filed a lawsuit with the First People's Court of Dongguan Guangdong

Province against Dongguan Shenliang Logistics Co. Ltd. Gansu Installation and Construction Group Co. Ltd.Guangdong Dianbai Building Group Co. Ltd. and Xu Jianqiang as defendants requesting: 1. the four defendants

to immediately pay the plaintiff the construction cost of 10445000 yuan; 2. the litigation fee in this case shall be

borne by the four defendants.On May 19 2021 Gansu Installation and Construction Group Co. Ltd. filed a counterclaim against Xu Anwu as

the counterclaim defendant requesting: 1. Xu Anwu to immediately return the overpaid 2566974.25 yuan to

Gansu Installation and Construction Group Co. Ltd.; 2. the litigation fee in this case shall be borne by Xu Anwu.

202深圳市深粮控股股份有限公司2022年半年度报告全文

The case was heard on July 14 and on April 22 2022 the First People's Court of Dongguan Guangdong Province

made a judgment rejecting all the plaintiff's claims against Dongguan Shenliang Logistics Co. Ltd.Gansu Installation and Construction Group Co. Ltd. appealed to the Dongguan Intermediate People's Court

Guangdong Province. On July 4 2022 the Intermediate People's Court of Dongguan City Guangdong Province

notified that the court investigation of this case is scheduled to be conducted on the Internet on August 5 2022.

1.2 Guarantee

(1) The Company and subsidiary of the Company -SZCG provide a guarantee to its subsidiary - International

Food

The Company and Subsidiary of the Company -SZCG provide a guarantee to International Food for the

application of loans amount of guarantee is 625.1480 million yuan. As of June 30 2022 the loan is not yet due

for repayment.

(2) Subsidiary of the Company -SZCG provide a guarantee to its subsidiary -Dongguan Logistics

Subsidiary of the Company -SZCG provide a guarantee to Dongguan Logistics for the application of loans

amount of guarantee is 99.2121 million yuan. As of June 30 2022 the loan is not yet due for repayment.

(3) Associated guarantees and restricted assets

Restricted assets found more in the Note VII (81) associated guarantee found more in Note XII (5)

(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

XV. Events after balance sheet date

1. Important non adjustment matters

Unit: CNY/RMB

Impact on financial status and Reasons of fails to estimate

Item Content

operation results the impact

2. Profit distribution

Unit: CNY/RMB

203深圳市深粮控股股份有限公司2022年半年度报告全文

3. Sales return

4. Description of other balance sheet events after the date

XVI. Other important events

1. Previous accounting errors collection

(1) Retrospective restatement

Unit: CNY/RMB

Content of accounting error Items impact during vary

Procedures Accumulated impact

correction comparative period

(2) Prospective application

Reasons for adopting the prospective

Content of accounting error correction Approval procedure

applicable method

2. Debt restructuring

3. Assets exchange

(1) Exchange of non-monetary assets

(2) Other assets exchange

4. Pension plan

5. Discontinuing operation

Unit: CNY/RMB

Profit of

discontinuing

Income tax operation

Item Revenue Expenses Total profit Net profit

expenses attributable to

owners of

parent company

Other explanation

204深圳市深粮控股股份有限公司2022年半年度报告全文

6. Segment

(1) Recognition basis and accounting policy for reportable segment

(2) Financial information for reportable segment

Unit: CNY/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. Principal notes of financial statements of parent company

1. Account receivable

(1) Account receivable classify by category

Unit: CNY/RMB

Ending balance Opening balance

Bad debt

Book balance Book balance Bad debt provision

Category provision Book Book

Amoun Amoun Accrua value Amoun Amoun Accrual value

Ratio Ratio

t t l ratio t t ratio

Account receivable

with bad debt 28453. 28453. 100.00 28453. 28453. 100.00

0.08%0.02%

provision accrual 08 08 % 08 08 %

on a single basis

Including:

Account receivable

with single minor

amount but with 28453. 28453. 100.00 28453. 28453. 100.00

0.08%0.02%

bad debts provision 08 08 % 08 08 %

accrued on a single

basis

Account receivable 13568

3381099.924426.3338064426.3135678

with bad debt 0.01% 2852.6 99.98% 0.01%

852.62%0426.320426.30

provision accrual 0

205深圳市深粮控股股份有限公司2022年半年度报告全文

on portfolio

Including:

Combination of 8852.6 4426.3 50.00 4426.3 8852.6 4426.3

0.03%0.01%50.00%4426.30

sales receivables 0 0 % 0 0 0

13567

Specific object 33802 99.89 33802 135674

4000.099.97%

combinations 000.02 % 000.02 000.00

13571

33839100.0032879.33806100.0032879.135678

Total 0.10% 1305.6 0.02%

305.70%38426.32%38426.30

Bad debt provision accrual on single basis: 28453.08 yuan

Unit: CNY/RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio Accrual causes

Other accrual on single Slightly possibly taken

28453.0828453.08100.00%

basis back

Total 28453.08 28453.08 --

Bad debt provision accrual on portfolio: 4426.30 yuan

Unit: CNY/RMB

Ending balance

Name

Book balance Bad debt provision Accrual ratio

Combination of sales

8852.604426.3050.00%

receivables

Specific object combinations 33802000.02

Total 33810852.62 4426.30

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

Unit: CNY/RMB

Account age Ending balance

Within one year (including 1-year) 33802000.02

Over 3 years 37305.68

4-5 years 8852.60

Over 5 years 28453.08

Total 33839305.70

(2) Bad debt provision accrual collected or reversal in the period

Bad debt provision accrual in the period:

Unit: CNY/RMB

206深圳市深粮控股股份有限公司2022年半年度报告全文

Amount changed in the period

Opening

Category Collected or Ending balance

balance Accrual Written off Other

reversal

Other accrual

28453.0828453.08

on single basis

Sales

Receivables 4426.30 4426.30

Portfolio

Total 32879.38 32879.38

Including major amount bad debt provision that collected or reversal in the period: nil

Unit: CNY/RMB

Enterprise Amount collected or reversal Collection way

(3) Account receivable actually written-off in the period

Unit: CNY/RMB

Item Amount written-off

Including major account receivable written-off:

Unit: CNY/RMB

Amount written- Procedure of Resulted by related

Enterprise Nature Written-off causes

off written-off transaction (Y/N)

Explanation on account receivable written-off:

(4) Top 5 account receivables at ending balance by arrears party

Unit: CNY/RMB

Ending balance of accounts Proportion in total receivables Bad debt preparation ending

Enterprise

receivable at ending balance balance

5) Account receivables derecognized due to the transfer of financial assets

6) Amount of assets and liabilities that formed the by transferring of account receivable and continue to

be involved

Other explanation

2. Other account receivable

Unit: CNY/RMB

Item Ending balance Opening balance

Dividend receivable 540000000.00 540000000.00

Other account receivable 623766691.58 443939717.84

Total 1163766691.58 983939717.84

207深圳市深粮控股股份有限公司2022年半年度报告全文

(1) Interest receivable

1) Category of interest receivable

Unit: CNY/RMB

Item Ending balance Opening balance

2) Important overdue interest

Unit: CNY/RMB

Whether impairment

Borrower Ending balance Overdue time Overdue causes occurs and its

judgment basis

Other explanation

3) Accrual of bad debt provision

□ Applicable √Not applicable

(2) Dividend receivable

1) Category of dividend receivable

Unit: CNY/RMB

Item (or the invested entity) Ending balance Opening balance

SZCG 540000000.00 540000000.00

Total 540000000.00 540000000.00

2) Important dividend receivable with account age over one year

Unit: CNY/RMB

Whether impairment

Item (or the invested Reasons for not

Ending balance Account age occurs and its

entity) collection

judgment basis

3) Accrual of bad debt provision

□ Applicable √Not applicable

Other explanation

(3) Other account receivable

1) By nature

Unit: CNY/RMB

208深圳市深粮控股股份有限公司2022年半年度报告全文

Nature Ending book balance Opening book balance

Margin and deposit 232405.63 168234.34

Current payments and others 651379020.99 471616218.54

Total 651611426.62 471784452.88

2) Accrual of bad debt provision

Unit: CNY/RMB

Phase I Phase II Phase III

Expected credit losses for Expected credit losses for

Expected credit

Bad debt provision the entire duration the entire duration (with Total

losses over next 12

(without credit credit impairment

months

impairment occurred) occurred)

Balance on Jan. 1

213468.1527631266.8927844735.04

2022

Balance of Jan. 1 2022

in the period

Balance on Jun. 30

213468.1527631266.8927844735.04

2022

Change of book balance of loss provision with amount has major changes in the period

□ Applicable √Not applicable

By account age

Unit: CNY/RMB

Account age Ending balance

Within one year (including 1-year) 274612558.69

2-3 years 351504462.58

Over 3 years 25494405.35

4-5 years 436664.33

Over 5 years 25057741.02

Total 651611426.62

3) Bad debt provision accrual collected or reversal in the period

Bad debt provision accrual in the period:

Unit: CNY/RMB

Amount changed in the period

Opening

Category Collected or Ending balance

balance Accrual Written off Other

reversal

Bad debt

provision

27631266.8927631266.89

accrual on

single basis

Bad debt 213468.15 213468.15

209深圳市深粮控股股份有限公司2022年半年度报告全文

provision

accrual on

portfolio

Total 27844735.04 27844735.04

Including major amount with bad debt provision reverse or collected in the period: nil

Unit: CNY/RMB

Enterprise Amount reversal or collected Collection way

4) Other account receivable actually written-off in the period

Unit: CNY/RMB

Item Amount written-off

Including important other account receivable written-off:

Unit: CNY/RMB

Amount written- Procedure of Resulted by related

Enterprise Nature Written-off causes

off written-off transaction (Y/N)

Explanation on other account receivable written-off:

5) Top 5 other receivables at ending balance by arrears party

Unit: CNY/RMB

Ratio in total

Bad debt

ending balance of

Enterprise Nature Ending balance Account age preparation ending

other account

balance

receivables

First Other internal Within one year

170911385.4026.23%

funds 1-2 years

Second Other internal Within one year

121514328.4118.65%

funds 1-2 years

Three Other internal Within one year

120726391.4018.53%

funds 1-2 years

Fourth Other internal

85049378.94 Within one year 13.05%

funds

Fifth Other internal

83605194.12 Within one year 12.83%

funds

Total 581806678.27 89.29%

6) Other account receivables related to Government subsidy

Unit: CNY/RMB

Time amount and

Enterprise Government subsidy Ending balance Ending account age basis for collection

predicted

210深圳市深粮控股股份有限公司2022年半年度报告全文

7) Other receivables derecognized due to the transfer of financial assets

8) Amount of assets and liabilities that formed the by transferring of other receivable and continue to be

involved

Other explanation：

3. Long-term equity investment

Unit: CNY/RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Investment for 4029519425. 4024019425. 4054019425. 4048519425.

5500000.005500000.00

subsidiary 09 09 09 09

Investment for

associates and 2927628.53 2927628.53 2927628.53 2927628.53

joint venture

4032447053.4024019425.4056947053.4048519425.

Total 8427628.53 8427628.53

62096209

(1) Investment for subsidiary

Unit: CNY/RMB

Current changes (+ -) Ending

Opening Ending

The invested Accrual of balance of

balance(book Additional Capital balance(book

entity impairment Other impairment

value) investment reduction value)

provision provision

Shenbao

Industry & 5500000.00

Trade

Shenliang 80520842.3 80520842.3

Food 6 6

Shenbao 168551781. 54676764.1 223228545.Huacheng 80 1 91

Huizhou 60000000.0 60000000.0

Shenbao 0 0

Shenbao 54676764.1 54676764.1

Technology 1 1

Shenbao 50000000.0 50000000.0

Investment 0 0

329141503329141503

SZCG

6.826.82

Dongguan 321680000. - 297180000.

211深圳市深粮控股股份有限公司2022年半年度报告全文

Logistics 00 24500000.0 00

Wuhan 21675000.0 21675000.0

Jiacheng 0 0

40485194254676764.154676764.1402401942

Total 24500000.0 5500000.00

5.09115.09

(2) Investment for associates and joint venture

Unit: CNY/RMB

Current changes (+ -)

Ending

Investm Cash

Openin Other Accrual balance

Investm ent dividen Ending

g Additio compre of of

ent Capital gains Other d or balance

balance nal hensive impair impair

compan reducti recogni equity profit Other (book

(book investm income ment ment

y on zed change announ value)

value) ent adjustm provisi provisi

under ced to

ent on on

equity issued

I. Joint venture

II. Associated enterprise

Shenzh

Shenba

(Liaoyu 57628.an) 53

Industri

Compa

Shenzh

Shenba

28700

(Xinmi

00.00

Foods

Co.Ltd

Changz

hou

Shenba

212深圳市深粮控股股份有限公司2022年半年度报告全文

Chacan

g E-

busines

s Co.Ltd.Subtota 29276

l 28.53

29276

Total

28.53

(3) Other explanation

4. Operating revenue and operating cost

Unit: CNY/RMB

Current period Last period

Item

Revenue Cost Revenue Cost

Main business 94652563.62 235795.14 78409527.17 235795.14

Other business 80008.26

Total 94732571.88 235795.14 78409527.17 235795.14

Information relating to revenue:

Unit: CNY/RMB

Category Branch 1 Branch 2 Total

Product Types

Including:

Classification by

business area

Including:

Market or customer

type

Including:

Contract Types

Including:

Classification by time

of goods transfer

Including:

Classification by

213深圳市深粮控股股份有限公司2022年半年度报告全文

contract duration

Including:

Classification by sales

channel

Including:

Total

Information relating to performance obligations:

Nil

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

0.00yuan of revenue is expected to be recognized in 0 yuan of revenue is expected to be recognized in 0 and

0.00 yuan of revenue is expected to be recognized in 0.

Other explanation:

5. Investment income

Unit: CNY/RMB

Item Current period Last period

Investment income during the period of

116111.11

tradable financial assets hold

Financial income 2279175.50

Dividends 451054.95

Total 2279175.50 567166.06

6. Other

XVIII. Supplementary information

1. Current non-recurring gains/losses

√ Applicable □Not applicable

Unit: CNY/RMB

Item Amount Note

Governmental subsidy reckoned into

current gains/losses (except for those

with normal operation business

concerned and conform to the national 8046293.93

policies & regulations and are

continuously enjoyed at a fixed or

quantitative basis according to certain

214深圳市深粮控股股份有限公司2022年半年度报告全文

standards)

Profit and loss of assets delegation on

221889.46

others’ investment or management

Except for the effective hedging

operations related to normal business

operation of the Company the

gains/losses of fair value changes from

holding the trading financial assets and 3573445.74

trading financial liabilities and the

investment earnings obtained from

disposing the trading financial asset

trading financial liability

Switch-back of provision of impairment

of account receivable which are treated 127286.00

with separate depreciation test

Other non-operating income and

expenditure except for the 1065883.45

aforementioned items

Less: impact on income tax 2637117.23

Impact on minority interests 2187.17

Total 10395494.18 --

Details of other gains/losses items that meets the definition of non-recurring gains/losses:

□ Applicable √ Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss

in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -

-- Extraordinary Profit/loss

□ Applicable √ Not applicable

2. ROE and earnings per share

Earnings per share

Profits during report period Weighted average ROE Basic earnings per Diluted earnings per

share (RMB/Share) share (RMB/Share)

Net profits belong to common

stock stockholders of the 5.00% 0.2061 0.2061

Company

Net profits belong to common

stock stockholders of the