SHENZHEN TELLUS HOLDING CO. LTD.
Financial Report
Semi-Annual Report 2020（Un-audited）
August 2020
Financial statements
1. Consolidated balance sheet
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 333609309.62 428851606.04
Settlement provisions
Capital lent
Tradable financial assets 115128569.86 60486575.34
Derivative financial assets
Note receivable
Account receivable 60519075.70 112613224.27
Receivable financing
Accounts paid in advance 17088141.12 12683603.89
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 45617678.95 44908546.40
Including: Interest receivable
Dividend receivable 39647732.42 39647732.42
Buying back the sale of financial
assets
Inventories 15113989.46 21389602.83
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 2970702.64 3403969.23
Total current assets 590047467.35 684337128.00
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 170700410.89 162178544.05
Investment in other equity
instrument
10176617.20 10176617.20
Other non-current financial assets
Investment real estate 545498309.35 554599503.55
Fixed assets 104203903.95 107119796.59
Construction in progress 74408194.38 47654393.55
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 49968510.91 50561225.67
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
12895310.28 13606805.49
Deferred income tax asset 8639491.29 8658962.39
Other non-current asset 9517049.06 6889167.54
Total non-current asset 986007797.31 961445016.03
Total assets 1576055264.66 1645782144.03
Current liabilities:
Short-term loans 0.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 67591547.16 69087430.42
Accounts received in advance 14416295.28 27299822.71
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 30992026.80 31204794.89
Taxes payable 13159531.35 71425267.61
Other account payable 99453009.14 101266802.49
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 225612409.73 300284118.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 0.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable 3920160.36 3920160.36
Long-term wages payable
Accrual liability 2225468.76 2225468.76
Deferred income 139400.00 139400.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 6285029.12 6285029.12
Total liabilities 231897438.85 306569147.24
Owner’s equity:
Share capital 431058320.00 431058320.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 431449554.51 431449554.51
Less: Inventory shares
Other comprehensive income 26422.00 26422.00
Reasonable reserve
Surplus public reserve 21007488.73 21007488.73
Provision of general risk
Retained profit 394914047.12 387423510.78
Total owner’ s equity attributable to
parent company
1278455832.36 1270965296.02
Minority interests 65701993.45 68247700.77
Total owner’ s equity 1344157825.81 1339212996.79
Total liabilities and owner’ s equity 1576055264.66 1645782144.03
Legal representative: Fu Chunlong
Accounting Principal: Lou Hong
Accounting Firm’s Principal: Liu Yuhong
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 149476502.21 201885691.27
Trading financial assets 40324383.56
Derivative financial assets
Note receivable
Account receivable 2487958.11 206710.76
Receivable financing
Accounts paid in advance 16500.00 100000.00
Other account receivable 136039446.63 116037773.09
Including: Interest receivable
Dividend receivable 547184.35 547184.35
Inventories
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 2304943.56 1419760.18
Total current assets 290325350.51 359974318.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 868070987.03 859355040.60
Investment in other equity
instrument
10176617.20 10176617.20
Other non-current financial assets
Investment real estate 38164135.64 39616602.02
Fixed assets 13680941.18 14012830.64
Construction in progress 50643962.68 35321704.26
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 48418670.74 48953266.56
Research and development costs
Goodwill
Long-term deferred expenses 2460433.45 2639122.63
Deferred income tax assets 3538377.94 3557849.04
Other non-current assets 9417049.06 6789167.54
Total non-current assets 1044571174.92 1020422200.49
Total assets 1334896525.43 1380396519.35
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 14000.00 14000.00
Accounts received in advance 7849.53
Contractual liability
Wage payable 17856341.97 8199278.01
Taxes payable 677021.46 54684929.01
Other accounts payable 259193066.48 257260350.77
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 277748279.44 320158557.79
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
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 277748279.44 320158557.79
Owners’ equity:
Share capital 431058320.00 431058320.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 428256131.23 428256131.23
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 21007488.73 21007488.73
Retained profit 176826306.03 179916021.60
Total owner’s equity 1057148245.99 1060237961.56
Total liabilities and owner’s equity 1334896525.43 1380396519.35
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 197051790.29 278268739.33
Including: Operating income 197051790.29 278268739.33
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 177927309.69 243457096.79
Including: Operating cost 154774587.52 210494012.42
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 1376727.57 2968165.06
Sales expense 6776144.54 9358514.29
Administrative expense 17202000.61 16878629.26
R&D expense
Financial expense -2202150.55 3757775.76
Including: Interest
expenses
46986.20 4765937.06
Interest income 2453494.99 1152054.69
Add: other income 52846.70 6611.29
Investment income (Loss is
listed with “-”)
12881490.50 16711450.93
Including: Investment income
on affiliated company and joint venture
8521866.84 10775524.54
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
-356102.35
Loss of credit impairment
(Loss is listed with “-”)
599201.43 101666.14
Losses of devaluation of asset
(Loss is listed with “-”)
0.00
Income from assets disposal
(Loss is listed with “-”)
103159.68
III. Operating profit (Loss is listed with
“-”)
32301916.88 51734530.58
Add: Non-operating income 946106.92 119625.44
Less: Non-operating expense 29059.48 833400.00
IV. Total profit (Loss is listed with “-”) 33218964.32 51020756.02
Less: Income tax expense 6448306.06 6038256.76
V. Net profit (Net loss is listed with “-”) 26770658.26 44982499.26
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
26770658.26 44982499.26
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
25594985.78 44779948.60
2.Minority shareholders’ gains and
losses
1175672.48 202550.66
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 26770658.26 44982499.26
Total comprehensive income
attributable to owners of parent Company
25594985.78 44779948.60
Total comprehensive income
attributable to minority shareholders
1175672.48 202550.66
VIII. Earnings per share:
(i) Basic earnings per share 0.0594 0.1039
(ii) Diluted earnings per share 0.0594 0.1039
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
realized 0 Yuan at last period for combined party
Legal representative: Fu Chunlong
Accounting Principal: Lou Hong
Accounting Firm’s Principal: Liu Yuhong
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 13120854.52 19112054.55
Less: Operating cost 3857719.57 1774557.00
Taxes and surcharge 409089.36 786231.07
Sales expenses 1569961.98
Administration expenses 12509528.85 8507495.18
R&D expenses
Financial expenses -961656.89 2775796.55
Including: interest
expenses
3610643.70
Interest income 1050258.70 851734.70
Add: other income 21849.42
Investment income (Loss is
listed with “-”)
19230523.18 11794465.45
Including: Investment income
on affiliated Company and joint venture
8715946.43 8376471.67
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
-324383.56
Loss of credit impairment
(Loss is listed with “-”)
-18945.66
Losses of devaluation of asset
(Loss is listed with “-”)
Income on disposal of assets
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
“-”)
14664200.69 17043494.54
Add: Non-operating income -18810.00 19425.71
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 14645390.69 17062920.25
Less: Income tax -369343.18 764471.10
IV. Net profit (Net loss is listed with
“-”)
15014733.87 16298449.15
(i)continuous operating net profit(net loss listed with ‘-”)
15014733.87 16298449.15
(ii) termination of net profit (netloss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 15014733.87 16298449.15
VII. Earnings per share:
(i) Basic earnings per share 0.0348 0.0378
(ii) Diluted earnings per share 0.0348 0.0378
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
263485972.58 275395004.65
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received
Other cash received concerning
operating activities
38218429.50 30288007.02
Subtotal of cash inflow arising from
operating activities
301704402.08 305683011.67
Cash paid for purchasing
commodities and receiving labor
service
142251999.24 212542573.51
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 24589002.12 26091445.73
Taxes paid 68873589.78 9452428.27
Other cash paid concerning
operating activities
48683488.74 30162504.86
Subtotal of cash outflow arising from
operating activities
284398079.88 278248952.37
Net cash flows arising from operating
activities
17306322.20 27434059.30
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
755800000.00 965735585.20
Cash received from investment
income
4556873.60 5967222.92
Net cash received from disposal of
fixed intangible and other long-term
assets
6400.00 78500.00
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
20870000.00
Subtotal of cash inflow from investing
activities
760363273.60 992651308.12
Cash paid for purchasing fixed
intangible and other long-term assets
37821844.32 34041146.15
Cash paid for investment 810800000.00 904100000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
848621844.32 938141146.15
Net cash flows arising from investing
activities
-88258570.72 54510161.97
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
20000000.00
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 158020000.00
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
178020000.00
Cash paid for settling debts 2952372.85 198814887.55
Cash paid for dividend and profit
distributing or interest paying
21825829.24 4756413.09
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
24778202.09 203571300.64
Net cash flows arising from financing
activities
-24778202.09 -25551300.64
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
88.42 9.84
V. Net increase of cash and cash
equivalents
-95730362.19 56392930.47
Add: Balance of cash and cash
equivalents at the period -begin
400668257.81 142848120.69
VI. Balance of cash and cash
equivalents at the period -end
304937895.62 199241051.16
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
4151391.53 14820726.01
Write-back of tax received 0
Other cash received concerning
operating activities
40826847.87 6580839.48
Subtotal of cash inflow arising from
operating activities
44978239.40 21401565.49
Cash paid for purchasing
commodities and receiving labor
service
239375.15
Cash paid to/for staff and workers 11892984.82 7850812.96
Taxes paid 54859179.71 1157332.91
Other cash paid concerning
operating activities
46163081.37 14812259.31
Subtotal of cash outflow arising from
operating activities
113154621.05 23820405.18
Net cash flows arising from operating
activities
-68176381.65 -2418839.69
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
307000000.00 500000000.00
Cash received from investment
income
10641433.09 3996094.69
Net cash received from disposal of
fixed intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
20870000.00
Subtotal of cash inflow from investing
activities
317641433.09 524866094.69
Cash paid for purchasing fixed
intangible and other long-term assets
17257856.83 7675914.33
Cash paid for investment 267000000.00 487000000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
284257856.83 494675914.33
Net cash flows arising from investing 33383576.26 30190180.36
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 143000000.00
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
143000000.00
Cash paid for settling debts 143000000.00
Cash paid for dividend and profit
distributing or interest paying
18104449.44 3670662.11
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
18104449.44 146670662.11
Net cash flows arising from financing
activities
-18104449.44 -3670662.11
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
equivalents
-52897254.83 24100678.56
Add: Balance of cash and cash
equivalents at the period -begin
173702343.04 62172486.14
VI. Balance of cash and cash
equivalents at the period -end
120805088.21 86273164.70
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Item
2020 semi-annual
Owners’ equity attributable to the parent Company
Minori
ty
interes
ts
Total
owners
’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
Prefe
rred
stock
Perpe
tual
capit
Other
al
secur
ities
e
I. Balance at the
end of the last
year
4310
5832
0.00
43144
9554.
51
26422
.00
21007
488.7
3
38742
3510.
78
1270
96529
6.02
68247
700.7
7
1339
21299
6.79
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at
the beginning of
this year
4310
5832
0.00
43144
9554.
51
26422
.00
21007
488.7
3
38742
3510.
78
1270
96529
6.02
68247
700.7
7
1339
21299
6.79
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
7490
536.34
7490
536.34
-2545
707.32
4944
829.02
(i) Total
comprehensive
income
25594
985.7
8
25594
985.7
8
1175
672.48
26770
658.2
6
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
-1810
4449.
44
-1810
4449.
44
-3721
379.80
-2182
5829.
24
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
-1810
4449.
44
-1810
4449.
44
-3721
379.80
-2182
5829.
24
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
4310
5832
0.00
43144
9554.
51
26422
.00
21007
488.7
3
39491
4047.
12
1278
45583
2.36
65701
993.4
5
1344
15782
5.81
Last period
In RMB
Item
2019 semi-annual
Owners’ equity attributable to the parent Company
Minorit
y
interest
s
Total
owners’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
Prefe
rred
stock
Perp
etual
capit
al
secur
ities
Other
I. Balance at
the end of the
last year
2972
8160
0.00
56522
6274.
51
26422
.00
3139
918.14
18453
5322.
70
1050
20953
7.35
49072
678.52
10992
82215.
87
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at
the beginning
of this year
2972
8160
0.00
56522
6274.
51
26422
.00
3139
918.14
18453
5322.
70
1050
20953
7.35
49072
678.52
10992
82215.
87
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
1337
7672
0.00
-1337
76720
.00
44779
948.6
0
44779
948.6
0
20202
550.66
64982
499.26
(i) Total
comprehensive
income
44779
948.6
0
44779
948.6
0
202550
.66
44982
499.26
(ii) Owners’
devoted and
decreased
20000
000.00
20000
000.00
capital
1.Common
shares invested
by shareholders
20000
000.00
20000
000.00
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1337
7672
0.00
-1337
76720
.00
1. Capital
reserves
conversed to
capital (share
capital)
1337
7672
0.00
-1337
76720
.00
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
4310
5832
0.00
43144
9554.
51
26422
.00
3139
918.14
22931
5271.
30
1094
98948
5.95
69275
229.18
11642
64715.
13
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item
2020 semi-annual
Share
capital
Other equity instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compreh
ensive
income
Reasona
ble
reserve
Surplus
reserve
Retaine
d profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securiti
es
Other
I. Balance at the
end of the last
year
43105
8320.0
0
428256
131.23
210074
88.73
17991
6021.6
0
1060237
961.56
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the
beginning of this
year
43105
8320.0
0
428256
131.23
210074
88.73
17991
6021.6
0
1060237
961.56
III. Increase/ -3089 -3089715
Decrease in this
year (Decrease is
listed with “-”)
715.57 .57
(i) Total
comprehensive
income
15014
733.87
1501473
3.87
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
-18104
449.44
-1810444
9.44
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
-18104
449.44
-1810444
9.44
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
43105
8320.0
0
428256
131.23
210074
88.73
17682
6306.0
3
1057148
245.99
Last period
In RMB
Item
2019 semi-annual
Share
capital
Other equity
instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compre
hensive
income
Reasonab
le reserve
Surplus
reserve
Retained
profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securit
ies
Other
I. Balance at the
end of the last
year
29728
1600.
00
562032
851.23
31399
18.14
1854585
0.31
88100021
9.68
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year
29728
1600.
00
562032
851.23
31399
18.14
1854585
0.31
88100021
9.68
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
13377
6720.
00
-13377
6720.0
0
1629844
9.15
16298449.
15
(i) Total
comprehensive
income
1629844
9.15
16298449.
15
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
13377
6720.
00
-13377
6720.0
0
1. Capital
reserves
conversed to
capital (share
capital)
13377
6720.
00
-13377
6720.0
0
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
43105
8320.
00
428256
131.23
31399
18.14
3484429
9.46
89729866
8.83
Shenzhen Tellus Holding Co. Ltd.Notes to Financial Statements (Jan.-Jun. 2020)
(The unit is RMB unless otherwise specified)
I. Company profiles
1. Company profile
Chinese name of the Company: 深圳市特力(集团)股份有限公司
Foreign name of the Company: ShenZhen Tellus Holding Co.Ltd
Registered address of the Company: 3/F Tellus Building No.56 Shui Bei Er Road Luohu District Shenzhen
Office address of the Company: 3/F 4/F Tellus Building No.56 Shui Bei Er Road Luohu District Shenzhen
Stock exchange for listing: Shenzhen Stock Exchange
Short form of the stock and Stock code: Tellus-A(000025)Tellus-B(200025)
Registered capital: RMB 431058300
Legal representative: Fu Chunlong
Unified social credit code: 91440300192192210U
2. Business scope and major products and services of the Company
Business scope: Investment in industries (a separate application would be made for specific project); domestic
commerce supply and distribution of materials (excluding those commodities subject to exclusive operation
control and sale); rental and management of independently-owned properties. Operation of the products produced
by the Company and its subsidiaries productive materials used by us and import and export of metal proceeding
machinery and general components; the import and export business is subject to the foreign trade certificate Shen
Mao Guan Zheng Zi No. 098.Major products and services: automobile sales auto maintenance and inspection sales of jewelry property leasing
and service.
3. History of the Company
Shenzhen Testrite Group Co. Ltd. (hereinafter referred to as the Company) previously known as Shenzhen
Machinery Industry Company was incorporated on 10 November 1986. In 1992 as authorized by the reply
relating to Shenzhen Machinery Industry Company transforming to Shenzhen Testrite Machinery Co.Ltd.(SFBF[1991]1012) issued by the Office of Shenzhen People Government Shenzhen Machinery Industry
Company was transformed to Shenzhen Testrite Machinery Co. Ltd. in 1993 as authorized by the reply relating
to Shenzhen Testrite Machinery Co. Ltd. transforming to a public company (SFBF[1992]1850) issued by the
Office of Shenzhen People Government and the reply relating to issuance of stocks by Shenzhen Testrite
Machinery and Electric Co. Ltd. (SRYFZ[1993]092) issued by Shenzhen branch of People’s Bank of China
Shenzhen Testrite Machinery Co. Ltd. changed to be a public company and made the initial public offering. The
name of the Company changed to Shenzhen Testrite Machinery and Electric Co. Ltd. with a total share capital of
166880000 shares among which 120900000 shares were converted from the original assets and 45980000
shares were newly issued. The newly issued shares comprises of 25980000 RMB ordinary shares (A shares) and
20000000 RMB special shares (B shares). In June 1993 as approved by the reply relating to listing of Shenzhen
Testrite Machinery and Electric Co. Ltd. (SZBF[1993]34) issued by Shenzhen Securities Management Office and
the Listing Grant issued by Shenzhen Stock Exchange(SZSZ[1993]22) Shenzhen Testrite Machinery and Electric
Co. Ltd. was listed on Shenzhen Stock Exchange. On 15 March 1993 being approved by branch of Shenzhen
Special Economic Zone of People’s Bank of China “Shen Ren Yin Fu Zi (1993) No.: 092” the Company released
25.98 million registered common A shares with RMB 1.00 par value as well as 20 million B shares. And the
Company renamed as Shenzhen Tellus Holding Co. Ltd. instead of Shenzhen Testrite Machinery Co. Ltd. dated
30 June 1994 after approval from the Shenzhen Administration for Industry and commerce. As of 30 June 2020
the Company has 431058300 shares issued in total.There are 16 subsidiaries including Shenzhen Zhongtian Industrial Co. Ltd. Sichuan Tellus Jewelry Tech. Co.Ltd and Shenzhen Huari Toyota Auto Sales Service Co. Ltd included in the consolidate scope of the Company in
the Period found more in the explanation carry in Note VII and Note VIII.This financial statement is approved for disclosure by resolution from the Board dated 26 August 2020.II. Basis Preparation of the Financial Statements
1.Preparation base
Financial statement of the Company is prepared on a going concern basis.
2. Going concern
The Company does not have any events or circumstances that would cause significant doubt about its ability to
continue as a going concern within 12 months from the end of the reporting period.III. Important accounting policy & accounting estimation
Specific accounting policies and estimation attention:
Important tips: according to the characteristics of the actual production and operation the Company formulated
specific accounting policies and estimation for transactions or events such as impairment of financial instruments
depreciation of fixed assets amortization of intangible assets and revenue recognition.1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for
Business Enterprise which truly and completely reflect the financial status of the Company as well as the
operation results and cash flows.
2. Accounting period
Accounting period of the Company is falls to the range starting from 1 January to 31 December.
3. Operating cycle
Operating cycle of the Company’s business is relatively short and 12 months is taken as the liquidity division
standard of assets and liabilities.
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment method for business combination under the same control and business
combination not under the same control
1. Accounting treatment method for business combination under the same control
The assets and liabilities acquired by the company in a business combination shall be measured according to the
book value of the combined party in the consolidated financial statements of the ultimate controlling party on the
combination date. The company adjusts the capital reserve according to the difference between the book value
share of the combined party’s owner’s equity in the ultimate controlling party’s consolidated financial statements
and the book value of the combined consideration paid or the total face value of the issued shares; if the capital
reserve is insufficient to offset adjust the retained earnings.
2. Accounting treatment method for business combination not under the same control
The difference between the company’s combined cost and the fair value share of the acquiree’s identifiable net
assets acquired in the combination on the purchase date is recognized as goodwill; if the combination cost is less
than the fair value share of the acquiree’s identifiable net assets acquired in the combination review the fair value
of the acquiree’s identifiable assets liabilities and contingent liabilities and the measurement of the combination
cost in the first place. After the review if the combination cost is still less than the fair value of the acquiree’s
identifiable net assets obtained in the combination the difference is included in the current profit and loss.
6. Methods for preparation of consolidated financial statements
All subsidiaries controlled by the parent company are included in the consolidation scope of the consolidated
financial statements. The consolidated financial statements are based o the financial statements of the parent
company and its subsidiaries and prepared by the parent company in accordance with the Accounting Standards
for Business Enterprise No.33- Consolidated Financial Statement according to other relevant information.
7. Classification of joint venture arrangement and accounting for joint operations
1. Joint venture arrangements are divided into joint operations and joint ventures.
2. When the Company is a joint venture party of a joint venture arrangement recognizes its proportion of interests
in joint operation as related to the Company:
(1) To recognize separately-held assets and jointly-held assets under its proportion;
(2) To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
(3) To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
(4) To recognize revenue from disposal of the output under the proportion;
(5) To recognize separately occurred expenses and to recognize expenses occurred for joint operations under its
proportion.
8. Recognition standards for cash and cash equivalents
The cash carry in cash flow statement refers to the stock cash and deposits available for payment at any time.
Cash equivalent refers to the investment featuring with the following characters: short term active liquidity easy
to convert to already-known cash and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
1.Conversion of foreign currency business
When foreign currency transactions are initially recognized the spot exchange rate on the transaction date shall be
used to convert the foreign currency transaction into RMB amount.On the balance sheet date foreign currency
monetary items are converted at the spot exchange rate on the balance sheet date. The exchange difference arising
from different exchange rates except for the exchange difference of the principal and interest of foreign currency
special borrowings related to the acquisition and construction of assets that meet the conditions for capitalization
is included in the current profit and loss; as for the foreign currency non-monetary items measured by historical
cost conversion is made with the spot exchange rate as of the business day with no change in RMB amount; as
for the foreign currency non-monetary items measured by fair value the amount is then converted into RMB
according to the spot exchange rate as of the confirmation day for fair value. And the conversion difference
occurred is recorded into current gains/losses or other comprehensive income.
2. Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in the balance
sheet; as for the items in statement of owners’ equity except for “Retained profit” conversion is made pursuant to
the spot exchange rate of business day; items of income and expenses in the profit statement shall be converted at
the spot exchange rate on the date of transaction. The balance of foreign currency financial statements generated
according to the above transaction shall be included in other comprehensive income.10. Financial instruments
1. Categories of financial assets and financial liabilities
At initial recognition financial assets are classifies into three types: (1) the financial assets measured at amortized
cost; (2) the financial assets measured at fair value and whose changes are included in other comprehensive
income; and (3) the financial assets measured at fair value and whose changes are included in current gain/loss.
At the time of initial recognition financial liabilities are divided into the following four categories: (1) Financial
liabilities measured at fair value and whose changes are included in the current profit and loss; (2) Financial
liabilities formed as the transfer of financial assets does not meet the conditions for derecognition or continues to
be involved in the transferred financial assets; (3) Financial guarantee contracts that do not belong to
above-mentioned (1) or (2) and loan commitments that do not belong to above-mentioned (1) and are loaned at a
lower-than-market interest rate; (4) Financial liabilities measured at amortized cost.
2. Recognition basis measurement method and derecognition conditions of financial assets and financial
liabilities
(1) Recognition basis and initial measurement method of financial assets and financial liabilities
When a company becomes a party to a financial instrument contract a financial asset or financial liability is
recognized. When financial assets or financial liabilities are initially recognized they are measured at fair value;
for financial assets and financial liabilities that are measured at fair value and whose changes are included in the
current profits and losses the relevant transaction costs are directly included in the current profits and losses; for
other types of financial assets or financial liabilities related transaction costs are included in the initial recognition
amount. However if the account receivable initially recognized by the company does not contain a significant
financing component or the company does not consider the financing component in a contract that is less than one
year the initial measurement is made at the transaction price.
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The subsequent measurement is carried out according to the amortized cost by adopting the effective interest
method. The gains or losses arising from financial assets that are measured at amortized costs and are not part of
any hedging relationship are included in the current profits and losses when they are derecognized reclassified
amortized or recognized as impairment in accordance with the effective interest method.
2) Debt instrument investment measured at fair value and whose changes are included in other comprehensive
income
Use fair value for subsequent measurement. Interest impairment losses or gains and exchange gains and losses
calculated by using the effective interest rate method are included in the current profits and losses and other gains
or losses are included in other comprehensive income. When derecognized the accumulated gains or losses
previously included in other comprehensive income shall be transferred from other comprehensive income and
included in the current profits and losses.
3) Equity instrument investment measured at fair value and whose changes are included in other comprehensive
income
Use fair value for subsequent measurement. Dividends obtained (except those that are part of the recovery of
investment costs) are included in the current profits and losses and other gains or losses are included in other
comprehensive income. When derecognized the accumulated gains or losses previously included in other
comprehensive income are transferred from other comprehensive income and included in retained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profits and losses
Use fair value for subsequent measurement and the resulting gains or losses (including interest and dividend
income) are included in the current profits and losses unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement methods of financial liabilities
1) Financial liabilities measured at fair value and whose changes are included in the current profits and losses
Such financial liabilities include transactional financial liabilities (including derivative instruments that are
financial liabilities) and financial liabilities designated to be measured at fair value and whose changes are
included in the current profits and losses. For such financial liabilities subsequent measurement is made at fair
value. Changes in the fair value of financial liabilities designated to be measured at fair value and whose changes
are included in the current profits and losses caused by changes in the company’s own credit risk are included in
other comprehensive income unless the treatment will cause or enlarge the accounting mismatch in the profits
and losses. Other gains or losses arising from such financial liabilities (including interest expensesexcept for
changes in fair value due to changes in the company's own credit risk) are included in the current profits and
losses unless the financial liabilities are part of the hedging relationship. When derecognized the accumulated
gains or losses previously included in other comprehensive income are transferred from other comprehensive
income and included in retained earnings.
2) The transfer of financial assets does not meet the conditions for derecognition or continues to be involved in
financial liabilities formed by the transferred financial assets
Measure in accordance with the relevant provisions of the "Accounting Standards for Business Enterprises No.
23-Transfer of Financial Assets".
3) Financial guarantee contracts that do not belong to 1) or 2) above and loan commitments that do not belong to
1) above and loan at interest rates lower than market interest rates
After the initial recognition the subsequent measurement shall be carried out according to the higher of the
following two amounts: ① The amount of loss provisions determined in accordance with the impairment
provisions of financial instruments; ② The balance after deducting the accumulated amortization determined in
accordance with relevant regulations from the initial recognition amount.
4) Financial liabilities measured at amortized cost
Measure at amortized cost by using the effective interest method. The gains or losses arising from financial
liabilities that are measured at amortized cost and are not part of any hedging relationship are included in the
current profits and losses when they are derecognized and amortized according to the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) When meeting one of the following conditions the financial assets are derecognized:
① The contractual right to receive cash flow of financial assets has been terminated;
② The financial assets have been transferred and the transfer meets the requirements of the "Accounting
Standards for Business Enterprises No. 23-Transfer of Financial Assets" on the derecognition of financial assets.
2) When the current obligation of the financial liability (or part of it) has been discharged the financial liability
(or part of the financial liability) shall be derecognized accordingly.
3. Recognition basis and measurement method of financial asset transfer
If the company transfers almost all the risks and rewards related to the ownership of a financial asset derecognize
the financial asset and separately recognize the rights and obligations arising or retained during the transfer as
assets or liabilities; if almost all the risks and rewards related to the ownership of the financial assets are
retainedcontinue to recognize the transferred financial assets. If the company neither transfers nor retains almost
all the risks and rewards related to the ownership of the financial assets the following situations shall be dealt
with respectively: (1) If the control of the financial assets is not retained derecognize the financial assets and the
rights and obligations generated or retained during the transfer shall be separately recognized as assets or
liabilities; (2) If the control of the financial assets is retained the relevant financial assets are recognized
according to the degree of continued involvement in the transferred financial assets and the relevant liabilities are
recognized accordingly.If the overall transfer of financial assets meets the conditions for derecognition the difference between the
following two amounts is included in the current profit and loss: (1) the book value of the transferred financial
assets on the date of derecognition; (2) the sum of the consideration received due to the transfer of financial assets
and the amount corresponding to the derecognized portion of the accumulated amount of fair value changes
originally directly included in other comprehensive income (the financial assets involved in transfer are
investments in debt instruments that are measured at fair value and whose changes are included in other
comprehensive income). If a part of the financial asset is transferred and the entire transferred part meets the
conditions for derecognition the book value of the entire financial asset before the transfer will be allocated
between the derecognition part and the part continuing to recognize according to their respective relative fair
values on the transfer date and include the difference between the following two amounts in the current profits
and losses: (1) the book value of the derecognized part; (2) the sum of the consideration of the derecognized part
and the amount corresponding to the derecognized portion of the accumulated amount of fair value changes
originally directly included in other comprehensive income (the financial assets involved in transfer are
investments in debt instruments that are measured at fair value and whose changes are included in other
comprehensive income)..
4. Methods for determining the fair value of financial assets and financial liabilities
The company uses valuation techniques that are applicable under current circumstances and have sufficient data
and other supporting information to determine the fair value of relevant financial assets and financial liabilities.The company divides the input values used by valuation techniques into the following levels and uses them in
sequence:
(1) The first-level input value is the unadjusted quotation of the same asset or liability in the active market that can
be obtained on the measurement date;
(2) The second-level input value is the directly or indirectly observable input value of related assets or liabilities
other than the first-level input value including the quotes of similar assets or liabilities in the active market; the
quotes of the same or similar assets or liabilities in the inactive market; other observable input values other than
quotes such as interest rates and yield curves that are observable during the normal quote interval;
market-validated input values etc.;
(3) The third-level input value is the unobservable input value of the relevant asset or liability including interest
rates that cannot be directly observed or verified by observable market data stock volatility future cash flows of
abandoned obligations assumed in business combinations financial forecasts made by using own data etc.
5. Impairment of financial instruments
(1) Impairment measurement and accounting treatment of financial instruments
The company uses expected credit losses as the basis and makes impairment and recognizes loss provisions for
financial assets measured at amortized cost investment in debt instruments measured at fair value with changes
included in other comprehensive income lease receivables loan commitments other than financial liabilities that
are classified as financial liabilities measured at fair value with changes included in the current profits and losses
financial liabilities that are not measured at fair value and whose changes are included in the current profits and
losses or financial guarantee contracts of financial liabilities that do not meet the conditions for derecognition or
continue to be involved in the transferred financial assets.
Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted on the
risk of default. Credit loss refers to the difference between all contractual cash flows discounted by the company
at the original actual interest rate and receivable under the contract and all cash flows expected to be received that
is the present value of all cash shortages. Among them for the financial assets purchased or originated by the
company that have been credit-impaired they are discounted according to the credit-adjusted actual interest rate
of the financial assets.
For purchased or derived financial assets that have been credit-impaired the company only recognizes the
cumulative changes in expected credit losses during the entire duration after initial recognition as loss provisions
on the balance sheet date.
For accounts receivable that do not contain a significant financing component or the company does not consider
the financing component of a contract that does not exceed one year the company uses the simplified
measurement method to measure the loss provisions at the amount equivalent to the expected credit losses during
the entire duration.
For lease receivables and accounts receivable that contain major financing components the company uses the
simplified measurement method to measure loss provisions at the amount equivalent to expected credit losses
during the entire duration.
For a financial asset other than the above measurement methods the company assesses on each balance sheet date
whether its credit risk has increased significantly since the initial recognition. If the credit risk has increased
significantly since the initial recognition the company measures the loss provisions at the amount of expected
credit losses during the entire duration; if the credit risk has not increased significantly since the initial recognition
the company measures the loss provisions based on the amount of expected credit loss of the financial instrument
in the next 12 months.The company uses available reasonable and evidence-based information including forward-looking information
and determines whether the credit risks of financial instruments have increased significantly since the initial
recognition by comparing the risk of default of financial instruments on the balance sheet date with the risk of
default on the date of initial recognition.On the balance sheet date if the company judges that a financial instrument only has a low credit risk it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.The company assesses expected credit risks and measures expected credit losses based on individual financial
instrument or a combination of financial instruments. When based on a combination of financial instruments the
company divides financial instruments into different combinations based on common risk characteristics.The company re-measures expected credit losses on each balance sheet date and the resulting increase in loss
reserves or the amount reversed is included in the current profits and losses as impairment losses or gains. For a
financial asset measured at amortized cost the loss provisions offset against the book value of the financial asset
listed in the balance sheet; for debt investments measured at fair value and whose changes are included in other
comprehensive income the company recognizes the loss provisions in other comprehensive income and does not
deduct the book value of the financial asset.
(2) Financial instrument that assesses expected credit risks and measures expected credit losses by portfolio
Item Basis for determining the portfolio Measuring methods for expected credit
losses
Other account receivable - related transaction
receivable in consolidate scope
Nature of the account With reference to historical credit loss
experience combined with current
conditions and forecasts of future economic
conditions the expected credit loss is
calculated through the default risk exposure
and the expected credit loss rate within the
next 12 months or the entire duration
Other account receivable - dividend receivable
Other account receivable - account age Account age
(3)Account receivable with expected credit loss measured at portfolio
1) Specific portfolio and methods on measuring the expected credit losses
Item Basis for determining the portfolio Measuring methods for expected credit
losses
Account receivable—account age account age With reference to historical credit loss
experience combined with current
conditions and forecasts of future economic
conditions the expected credit loss is
calculated by the comparison table prepared
between the account age of receivable and
the expected credit loss rate within the entire
duration
Account receivable - Jewelry sales business Account receivable with sales of jewelry With reference to historical credit loss
concerned experience combined with current
conditions and forecasts of future economic
conditions the expected credit loss is
calculated through the default risk exposure
and the expected credit loss rate within the
entire duration
2) Account receivable—comparison table between the account age (in portfolio) and expected credit loss rate
for the whole duration
Account age Expected credit loss rate of account
receivable (%)
Within one year (inclusive the same below) 1
1-2 years 5
2-3 years 20
Over 3 years 50
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet and do not offset each other.
However if the following conditions are met at the same time the company will list the net amount after
offsetting each other in the balance sheet: (1) The company has the statutory right to offset the recognized amount
and this statutory right is currently enforceable; 2) The company plans to settle on a net amount or realize the
financial assets and liquidate the financial liabilities at the same time.
For the transfer of financial assets that does not meet the conditions for derecognition the company does not
offset the transferred financial assets and related liabilities.
11.Note receivable
Not applicable
12.Account receivable
1. Account receivable with bad debt provision accrual on a single basis
Provision for bad debts on single basis: Bad debt provision shall be made on a single basis when there is evidence that the credit
risk of a single item of account receivable is large.
Accrual method for bad debt provision: Conduct impairment tests separately and make provision for bad debts according to the
difference between the present value of its future cash flow and its book value
2. Accounts receivable with provision for bad debts according to the combination of expected credit risk
characteristics
Except for the accounts receivable with bad debt provision accrual on a single basis the accounts receivable are
grouped according to the similarity and correlation of credit risk characteristics. These credit risks usually reflect
the debtor's ability to repay all due amounts in accordance with the contractual terms of the assets and are related
to the calculation of the future cash flow of the asset under inspection. The Group uses the aging of accounts
receivable as the combination of expected credit risk characteristics to make provisions for bad debts based on the
actual credit losses of previous years and the forward-looking information of the current year. The accounting
policies for bad debt provisions are as follows:
Account age Expected credit loss rate of account receivable (%)
Within one year 1
1-2 years 5
2-3 years 20
Over 3 years 50
13. Account receivable financing
Not applicable
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
1. Other account receivable with bad debt provision accrual on a single basis
Provision for bad debts on single basis: Bad debt provision shall be made on a single basis when there is evidence that the credit
risk of a single item of other account receivable is large.
Accrual method for bad debt provision: Conduct impairment tests separately and make provision for bad debts according to the
difference between the present value of its future cash flow and its book value
2. Other accounts receivable with provision for bad debts according to the combination of expected credit risk
characteristics
Except for the other accounts receivable with single provision for bad debts the other receivable are grouped
according to the similarity and correlation of credit risk characteristics. These credit risks usually reflect the
debtor's ability to repay all due amounts in accordance with the contractual terms of the assets and are related to
the calculation of the future cash flow of the asset under inspection. The Group uses the aging of other accounts
receivable as the combination of expected credit risk characteristics to make provisions for bad debts based on the
actual credit losses of previous years and the forward-looking information of the current year. The accounting
policies for bad debt provisions are as follows:
Account age Expected credit loss rate of other account receivable (%)
Within one year 1
1-2 years 5
2-3 years 20
Over 3 years 50
15. Inventory
1. Classification
Inventory includes finished products or commodities held for sale in daily activities products in the production
process materials and supplies consumed in the production process or the process of providing labor services etc.
2. Valuation methods for delivery of inventory
The delivery of inventory shall be priced individually on a first-in first-out basis.
3. Recognition standards of the net realizable value for inventory
On the balance sheet date inventories are measured at the lower of cost and net realizable value and provision for
impairment of inventories is made based on the difference between the cost of a single inventory/inventory
category and the net realizable value. The net realizable value of the inventory directly used for sale is determined
in the normal production and operation process at the estimated selling price of the inventory minus the estimated
sales expenses and related taxes. The net realizable value of the inventory that needs to be processed is determined
by the estimated selling price of the finished product produced after subtracting the estimated cost estimated sales
expenses and related taxes and fees at the time of completion in the normal production and operation process. On
the balance sheet date for part of the same inventory has a contract price agreement while the other part does not
have a contract price the net realizable value shall be determined separately and the corresponding cost shall be
compared to respectively determine the amount of provision or reversal for inventory falling price reserves.
4. Inventory system
Inventory system is the perpetual inventory system.
5. Amortization of low-value consumables and packaging materials
(1) Low-value consumables
Amortization is carried out according to the number of times of use.
(2) Wrappage
Amortization is carried out according to the number of times of use.
16. Contractual asset
Not applicable
17. Contract cost
Not applicable
18. Assets held for sale
1. Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1)according to the practice of selling this type of assets or disposal groups in a similar transaction
the non-current assets or disposal group can be sold immediately at its current condition; 2)The sale is likely to
occur that is the Company has made resolution on the selling plan and obtained definite purchase commitment
the selling is estimated to be completed within one year.The non-current assets or disposal group acquired by the company specifically for resale shall be classified as held
for sale on the date of acquisition if meets the condition of “expected to complete the sale within one year” on the
acquisition date and is likely to meet other classification conditions of held for sale in the short term (usually 3
months) .
Due to one of the following reasons beyond the company’s control the transaction among non-related parties
cannot be completed within one year and the company still promises to sell non-current assets or disposal groups
continue to classify non-current assets or disposal groups as held for sale: 1) The buyer or other parties
accidentally set the conditions that caused the sale to be delayed. The company has taken timely action against
these conditions and is expected to be able to smoothly resolve the delay factors within one year from the setting
of the conditions that caused the sale to be delayed; 2) Rare circumstances have caused the non-current assets held
for sale or the disposal group to fail to complete the sale within one year. The company has taken necessary
measures to address these new situations in the first year and has re-satisfied the classification conditions of the
held for sale categories.
2. Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When initially measuring and remeasuring the non-current assets or disposal groups held for sale on the balance
sheet date if the book value is higher than the net value of fair value minus selling expenses the book value shall
be written down to the net amount after deducting selling expenses from fair value the written-down amount is
recognized as asset impairment loss and included in the current profits and losses and provision for impairment
of assets held for sale is made.
For non-current assets or disposal groups classified as held-for-sale categories on the acquisition date compare
the initial measurement amount assuming that they are not classified as held-for-sale with the net amount after
deducting selling expenses from fair value at the initial measurement and measure the lower of the two. Except
for the non-current assets or disposal groups obtained in a business combination the difference arising from the
net amount of the non-current assets or disposal groups after deducting selling expenses from fair value and used
as the initial measurement amount is included in the current profit and loss.
For the amount of asset impairment losses confirmed by the disposal group held for sale the book value of the
goodwill in the disposal group is first offset and then the book value is offset in proportion based on the
proportion of the book value of each non-current asset in the disposal group.Non-current assets held for sale or non-current assets in the disposal group are not depreciated or amortized and
interest and other expenses on liabilities in the disposal group held for sale continue to be recognized.
2) Accounting treatment of asset impairment loss reversal
If the net amount of the fair value of the non-current assets held for sale increases after subtracting the selling
expenses on the subsequent balance sheet date the previously written-down amount shall be recovered and
reversed within the amount of the asset impairment losses recognized after being classified as held for sale and
the reversed amount is included in the current profits and losses. Asset impairment losses recognized before being
classified as held for sale shall not be reversed.On the subsequent balance sheet date if the net amount of the fair value of the disposal group held for sale
increases after subtracting the selling expenses the previously written-down amount shall be recovered and
reversed within the amount of the asset impairment losses recognized as non-current assets after being classified
as held for sale and the reversed amount is included in the current profits and losses. The book value of the
deducted goodwill and the asset impairment losses recognized before the non-current assets are classified as held
for sale shall not be reversed.
For subsequent reversal of the asset impairment losses confirmed by the disposal group held for sale its book
value is increased in proportion based on the proportion of the book value of each non-current asset in the disposal
group except for the goodwill.
3) Accounting treatment no longer being classified as held for sale and being derecognized
When non-current assets or disposal groups no longer continue to be classified as held for sale as they no longer
meet the classification conditions of the held for sale category or non-current assets are removed from the held for
sale disposal group measure based on the lower of the following two: a. Book value before being classified as
held for sale the amount adjusted according to the depreciation amortization or impairment that should have
been recognized under the assumption that it is not classified as held for sale; b. Recoverable amount.When derecognizing non-current assets or disposal groups held for sale the unrecognized gains or losses shall be
included in the current profits and losses.
19. Creditors’ investment
Not applicable
20. Other creditors’ investment
Not applicable
21. Long-term account receivable
Based on whether its credit risk has increased significantly since its initial recognition the Company uses an
amount equivalent to expected credit losses in the next 12 months or the entire duration to measure long-term
receivable impairment losses. Except for long-term receivables whose credit risk is assessed individually
impairment losses are accrued based on their credit risk characteristics.
22. Long-term equity investment
1. Judgment of joint control and significant influence
According to the relevant agreement there is mutual control over an arrangement and the relevant activities of
the arrangement must be agreed by the participants who share the control rights before making decisions and it is
deemed as joint control. Having the power to participate in decision-making on the financial and operating
policies of the invested entity but not being able to control or jointly control the formulation of these policies with
other parties it is deemed as a significant influence.
2. Determination of investment cost
(1) In the case of a business combination under the same control if the combining party pays cash transfers
non-cash assets assumes debts or issues equity securities as the merger consideration the share of the book value
of the acquired owner’s equity of the combined party in the consolidated financial statements of the ultimate
controlling party shall be used as its initial investment cost. The difference between the initial investment cost of
long-term equity investment and the book value of the combined consideration paid or the total face value of the
issued shares shall adjust the capital reserve; if the capital reserve is insufficient to offset adjust the retained
earnings.The company realizes the long-term equity investment formed by the business combination under the same
control step by step through multiple transactions and judges whether it is a "package deal". If it is a "package
deal" each transaction shall be accounted for as a transaction to obtain control for accounting treatment. If it is not
a "package deal" on the combining date the initial investment cost shall be determined based on the share of the
book value of the combined party's net assets in the ultimate controlling party's consolidated financial statements
after the combination. The difference between the initial investment cost of the long-term equity investment on
the combining date and the book value of the long-term equity investment before the combination plus the sum of
the book value of the consideration newly paid for further obtaining shares on the combining date shall adjust the
capital reserve; if the capital reserve is insufficient to offset adjust the retained earnings.
(2) In the case of a business combination not under the same control the fair value of the combined consideration
paid on the purchase date shall be the initial investment cost.The company realizes the long-term equity investment formed by business combination not under the same
control step by step through multiple transactions and separates individual financial statements and consolidated
financial statements for relevant accounting treatment:
1) In individual financial statements the sum of the book value of the equity investment originally held plus the
cost of the newly increased investment is used as the initial investment cost calculated by the cost method.
2) In the consolidated financial statements judge whether it is a "package deal". If it is a "package deal" each
transaction shall be accounted for as a transaction to obtain control for accounting treatment. If it is not a "package
deal" the equity of the acquiree held before the purchase date shall be remeasured at the fair value of the equity
on the purchase date and the difference between the fair value and its book value shall be included in the current
investment income.If the equity held by the acquiree before the purchase date involves other comprehensive income calculated by the
equity method the other comprehensive income related to it shall be converted to the current income on the
purchase date except for other comprehensive income arising from changes in net liabilities or net assets of
defined benefit plans remeasured by the investee.
(3) Except for the formation of a business combination for those obtained by paying cash the actual purchase
price paid shall be its initial investment cost; for those obtained by issuing equity securities the fair value of the
issued equity securities shall be its initial investment cost; for those acquired through debt restructuring the initial
investment cost shall be determined according to "Accounting Standards for Business Enterprises No. 12 - Debt
Restructuring"; for those acquired through non-monetary asset exchanges the initial investment cost shall be
determined in accordance with "Accounting Standards for Business Enterprises No. 7 - Non-monetary Asset
Exchanges".
3. Subsequent measurement and profit and loss confirmation methods
The long-term equity investment that controls the investee is accounted for by the cost method; the long-term
equity investment for associates and joint ventures is accounted for by the equity method.
4. Handling method of disposing investments in subsidiaries step by step through multiple transactions until they
lose control
(1) Individual financial statements
For the disposed equity the difference between its book value and the actual purchase price shall be included in
the current profit and loss. For the remaining equity if it still has a significant impact on the invested entity or
performs joint control with other parties it shall be converted to equity method accounting; if the invested entity
can no longer be controlled jointly controlled or significantly affected it shall be calculated in accordance with
relevant regulations of the "Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments".
(2) Consolidated financial statements
1) Step-by-step disposal of investments in subsidiaries through multiple transactions to the loss of control and not
belonging to a "package deal"
Before the loss of control the difference between the disposal cost and the net asset share continuing to be
calculated from the date of purchase or combination by the subsidiary corresponding to the disposal of long-term
equity investment shall adjust the capital reserve (capital premium) if the capital reserve is insufficient to offset
adjust the retained earnings.When losing the control to the original subsidiary the remaining equity shall be remeasured at its fair value on the
date of loss of control. The difference between the sum of the consideration obtained from the disposal of the
equity and the fair value of the remaining equity and the share of the original subsidiary’s net assets calculated
continuously from the date of purchase or merger according to the original shareholding ratio is included in the
current investment income when the control is lost while offsets goodwill. Other comprehensive income related
to the equity investment of the original subsidiary shall be transferred to the current investment income when
losing the control.
2) Step-by-step disposal of investments in subsidiaries through multiple transactions to the loss of control and
belonging to a "package deal"
Take each transaction as a transaction that disposes of a subsidiary and loses control for accounting treatment.However before the loss of control the difference between each disposal cost and the share of the subsidiary’s net
assets corresponding to the disposal investment shall be recognized as other comprehensive income in the
consolidated financial statements and shall be transferred to the profit and loss of current period when losing the
control.
23. Investment real estate
1. The investment real estate includes the rented land use rights the land use rights which are held and prepared
for transfer after appreciation and the rented buildings.
2. Initial measurement of an investment real estate is based on the cost the subsequent measurement is based on
cost model and adopt the same method of depreciation or amortization as fixed assets and intangible assets.
24. Fixed asset
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods providing
services lease or for operation & management and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time:1) It is probable that the economic benefits
associated with the assets will flow into the Company; and 2) The cost of the assets can be measured reliably.
(2)Depreciation methods
Category Method Years of depreciation Scrap value rate Yearly depreciation rate
House and buildings Straight-line depreciation 35-40 3 2.77-2.43
Machinery equipment Straight-line depreciation 12 3 8.08
Transport equipment Straight-line depreciation 7 3 13.86
Electronic equipment Straight-line depreciation 5-7 3 33.33-13.86
Office and other
equipment
Straight-line depreciation 7 3 13.86
Decoration fee for the
self-owned house
Straight-line depreciation 10 0 10.00
(3) Recognition measurement and depreciation of fixed assets held under finance lease
Not applicable
25. Construction in progress
1. The construction in progress is recognized when meet the follow conditions at the same time that is the
economic benefits are likely to flow in and the cost can be measured reliably. Construction in progress shall be
measured in terms of the actual cost incurred prior to the construction of such asset to its intended serviceable
state.
2. When the construction in progress reaches the expected serviceable state it will be transferred into fixed asses
according to the actual cost of the construction. Those who have reached the expected serviceable status but have
not yet processed the final account on completion shall be transferred to fixed assets according to the estimated
value first. The original temporary estimated value shall be adjusted according to the actual cost after the final
accounts for the completion have been processed but the previously accrued depreciation shall not be adjusted.
26. Borrowing expense
1. Recognition of capitalization of borrowing expenses
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.
2. Period of capitalization
(1) Borrowing expenses start to be capitalized when all of the following conditions are met: 1) capital expenditure
has been occurred; 2) borrowing expenses have been occurred and 3) acquisition or construction necessary for the
assets to come into an expected serviceable state has been carried out.
(2) If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition or
construction or in the production process and the interruption time exceeds 3 consecutive months the
capitalization of borrowing costs shall be suspended; the borrowing costs incurred during the suspension shall be
recognized as current expenses until the acquisition construction or production of assets restarts.
(3) When the purchased constructed or produced assets that meet the capitalization conditions reach the expected
usable or saleable state the capitalization of borrowing costs shall cease.
3. Capitalization rate and capitalization amount of borrowing costs
If special loans are borrowed for the purpose of purchasing constructing or producing assets that meet the
capitalization conditions the amount after subtracting the interest income obtained by depositing the unused
borrowing funds in the bank or the investment income obtained by making a temporary investment for the unused
borrowing funds from the interest expenses actually incurred during the period of the special loans (including the
amortization of discounts or premiums determined in accordance with the actual interest rate method) shall
determine the amount of interest that should be capitalized; if the general borrowing is occupied for the purchase
construction or production of assets that meet the capitalization conditions the amount of interest of general
borrowings that should be capitalized shall be calculated and determined by multiplying the weighted average
number of accumulated asset expenditures in excess of asset expenditures of special borrowings by the
capitalization rate of general borrowings.
27. Biological assets
Not applicable
28. Oil and gas assets
Not applicable
29. Right-of-use assets
Not applicable
30. Intangible assets
(1) Measurement use of life and impairment testing
1. Intangible assets of the Company including land use rights trademark and software which are initially
measured at cost.
2. Intangible assets with limited service life shall be amortized systematically and reasonably within their service
life in accordance with the expected realization method of the economic benefits related to the intangible assets. If
the expected realization method can not be reliably determined the straight-line method shall be adopted for
amortization. Specific year for amortization are as:
Item Period for amortization (Year)
Land use right 50
Trademark 10
Software 5
(2)Accounting policy of the internal R&D expenditure
Research expenditures for its internal R&D projects shall be recorded into the current gain/loss. Expenses incurred
during the development phase that satisfy the following condition at the same time are recognized as intangible
assets: 1)it is technically feasible that the intangible asset can be used or sold upon completion; 2)there is intention
to complete the intangible asset for use or sale; 3)the intangible asset can produce economic benefits including
there is evidence that the products produced using the intangible asset has a market or the intangible asset itself
has a market; if the intangible asset is for internal use there is evidence that there exists usage for the intangible
asset; 4) there is sufficient support in terms of technology financial resources and other resources in order to
complete the development of the intangible asset and there is capability to use or sell the intangible asset; and
5)the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long term assets
For long-term equity investments investment real estate measured by the cost model fixed assets construction in
progress intangible assets with limited service life and other long-term assets if there are signs of impairment on
the balance sheet date estimate the recoverable amount. For goodwill formed by business combinations and
intangible assets with uncertain service life regardless of whether there are signs of impairment an impairment
test is conducted every year. Goodwill is tested for impairment in combination with its related asset groups or
combination of asset groups.If the recoverable amount of the aforementioned long-term assets is lower than its book value the asset
impairment provision shall be recognized according to the difference and included in the current profit and loss.
32. Long-term prepaid expenses
General expenses that the long-term prepaid expenses have been accounted for and the amortization period is
more than 1 year (excluding 1 year). Long-term prepaid expenses are accounted for according to the actual
amount and amortized evenly in installments during the benefit period or the prescribed period. If the long-term
prepaid expense item cannot benefit the future accounting period all the amortized value of the item that has not
been amortized shall be transferred to the current profit and loss.
33. Contractual liabilities
Not applicable
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.(2) Accounting treatment for after-service benefits
After-service benefits are divided into defined contribution plan and defined benefit plan.
(1) During the accounting period when employees provide services to the company the amount of deposits
calculated according to the defined contribution plan is recognized as a liability and included in the current profit
and loss or the cost of related assets.
(2) The accounting treatment of defined benefit plans usually includes the following steps:
1) According to the expected cumulative welfare unit method use unbiased and mutually consistent actuarial
assumptions to estimate relevant demographic variables and financial variables measure the obligations arising
from the defined benefit plan and determine the period of the relevant obligations. At the same time the
obligations generated by the defined benefit plan are discounted to determine the present value of the defined
benefit plan obligations and current service costs;
2) If there are assets in a defined benefit plan the deficit or surplus formed by subtracting the fair value of the
defined benefit plan’s assets from the current value of the defined benefit plan's obligations shall be recognized as
a defined benefit plan’s net liabilities or net assets. If there is a surplus in the defined benefit plan the net assets of
the defined benefit plan shall be measured at the lower of the surplus of the defined benefit plan and the asset
ceiling;
3) At the end of the period the employee compensation costs generated by the defined benefit plans are
recognized as three parts i.e. service costs net interest of the net liabilities or net assets of the defined benefit
plans and changes in the remeasured net liabilities or net assets of the defined benefit plans of which the service
costs and the net interest of the net liabilities or net assets of the defined benefit plans are included in the current
profits and losses or the cost of related assets and the changes in the remeasured net liabilities or net assets of the
defined benefit plans are included in other comprehensive income and not allowed to switch back to profits or
losses in the subsequent accounting period but the amount recognized in other comprehensive income can be
transferred within the scope of equity.
(3)Accounting treatment for dismissal benefit
For dismissal benefit provided to employee the compensation liability resulting from dismissal benefits shall be
recognized as early as possible in the following two conditions and shall be recorded into current gain/loss:
1)when the company can not unilaterally withdraw severance benefits due to the labor relationship termination
plan or layoff proposal; 2) when the company recognizes the costs and expenses associated with a reorganization
involving the payment of severance benefits.
(4)Accounting treatment for other long term staff benefits
If other long term benefits provided to the employees meet the conditions of defined contribution plan accounting
treatment shall be conducted in line with relevant provisions of defined contribution plan; the accounting
treatment of other long term benefit beyond that shall be conducted in accordance with the relevant provision of
defined benefit plan in order to simplify relevant accounting treatment the employee compensation costs incurred
are recognized as service costs; the total net amount (includes net interest of the net liability (or net asset) of other
long term employee benefits and changes resulting from remeasuring the net liability (or net asset) of the long
term employee benefit) shall be recorded into current gain/loss or relevant assets costs.
35. Lease liability
Not applicable
36. Accrual liability
1. when the responsibility relating to contingencies such as guarantee litigation product warranties and loss
contract etc. are became the current responsibility undertaken by the Company the fulfilling of such responsibility
may lead to financial benefit outflow and such responsibility can be measured reliably for its value the
responsibility shall be recognized as an accrual liability.
2. Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment of
current responsibilities and on balance sheet date review the book value of the accrual liability.
37. Share-based payment
Not applicable
38. Other financial instrument of preferred stocks and perpetual bond
Not applicable
39. Revenue
Accounting policy applicable for the revenue recognition and measurement
1. Revenue recognition principle
(1) Sale of goods
The income from the sale of goods is recognized when the following conditions are met at the same time: 1) The
main risks and rewards of the ownership of the goods are transferred to the purchaser; 2) The company no longer
retains the continued management rights normally associated with the ownership and no longer implements
effectively control of the goods sold; 3) The amount of revenue can be reliably measured; 4) The relevant
economic benefits are likely to flow in; 5) The related costs that have occurred and will occur can be reliably
measured.
(2) Provision of labor services
The result of the provision of labor service transaction can be reliably estimated (at the same time the amount of
income can be reliably measured the relevant economic benefits are likely to flow in the completion progress of
the transaction can be reliably determined and the costs that have occurred and will occur in the transaction can
be measured reliably) on the balance sheet date the percentage of completion method is used to confirm the
income from the provision of labor services and the completion progress of the labor services transaction is
determined according to the proportion of the labor services provided to the total labor services to be provided. If
the result of the provision of labor service transaction cannot be reliably estimated on the balance sheet date and
the labor costs incurred are expected to be compensated the labor service income shall be recognized at the
amount of labor costs incurred and the labor costs shall be carried forward at the same amount. If the labor costs
incurred are not expected to be compensated and the labor costs incurred are included in the current profit sand
losses and labor income shall not be recognized.
(3) Transfer of assets use rights
The income from the transfer of assets use rights is recognized when the relevant economic benefits are likely to
flow in and the amount of income can be reliably measured. Interest income is calculated and determined in
accordance with the time for others to use the Company's monetary funds and the actual interest rate; usage fee
income is calculated and determined in accordance with the charging time and method agreed in the relevant
contract or agreement.
2. Specific methods of revenue recognition
(1) Automobile sales revenue
The Company sells automobiles and recognizes sales revenue after the automobiles are delivered to customers in
accordance with the agreement and the payment is received or the right to receive payment is obtained.
(2) Jewellery retail and wholesale
The Company's revenue from the sale of jewellery is divided into retail revenue and wholesale revenue according
to the sales method. Retail revenue is recognized when the physical goods have been delivered to consumers and
the payment has been collected. Wholesale revenue is realized when the physical goods have been delivered to the
customer and the customer has signed for confirmation and received the payment or obtained the proof of
claiming payment.
(3) Property rental income
The Company's property rental income is recognized as revenue on an accrual basis and sales revenue is
recognized when the leased assets are delivered to the lessee and the rent has been collected.
40. Government subsidy
1. Government subsidies are recognized when the following conditions are met at the same time: (1) The company
can meet the conditions attached to the government subsidies; (2) The company can receive government subsidies.If a government subsidy is a monetary asset it shall be measured at the amount received or receivable. If a
government subsidy is a non-monetary asset it shall be measured at its fair value; if its fair value cannot be
obtained reliably it shall be measured at its nominal amount.
2. Judgment basis and accounting treatment methods of government subsidies related to assets
Government documents stipulate that government subsidies used for purchase construction or other forms of
long-term assets shall be classified as asset-related government subsidies. If the government document doesn’t
stipulate judgment shall be made on the basis of the basic conditions that must be met to obtain the subsidies
those used for purchase construction or other forms of long-term assets shall be regarded as government subsidies
related to assets. Government subsidies related to assets are used to offset the book value of related assets or are
recognized as deferred income. If government subsidies related to assets are recognized as deferred income they
shall be included in profit and loss in installments within the useful life of the relevant assets in a reasonable and
systematic way. Government subsidies measured at their nominal amounts are directly included in the current
profits and losses. If the relevant asset is sold transferred scrapped or damaged before the end of its useful life
the undistributed deferred income balance shall be transferred to the current profits and losses of asset disposal.
3. Judgment basis and accounting treatment methods of government subsidies related to income
Government subsidies other than government subsidies related to assets are classified as government subsidies
related to income. For government subsidies that include both asset-related parts and income-related parts it is
difficult to distinguish between assets-related and income-related government subsidies and they are classified as
income-related government subsidies as a whole. If government subsidies related to income are used to
compensate related costs or losses in subsequent periods they are recognized as deferred income and included in
the current profits and losses or offset related costs during the period when related costs or losses are recognized
and they are directly included in the current profits and losses or offset related costs when being used to
compensate related costs or losses that have occurred.
4. Government subsidies related to the company's daily operating activities are included in other income or offset
related costs in accordance with the nature of the economic business. Government subsidies not related to the
company's daily activities are included in non-operating income and expenditure.
41. Deferred income tax assets and deferred income tax liabilities
1. According to the difference between the book value of assets and liabilities and their tax base (the tax base of
items that are not recognized as assets and liabilities can be determined in accordance with the tax law the
difference between the tax base and its book amount) the deferred income tax assets or deferred income tax
liabilities are calculated and recognized according to the applicable tax rate during the period when the asset is
expected to be recovered or the liability is settled.
2. Recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be
obtained to offset deductible temporary differences. On the balance sheet date if there is conclusive evidence
showing that sufficient taxable income is likely to be obtained in the future to offset the deductible temporary
differences recognize the deferred income tax assets that have not been recognized in the previous accounting
period.
3. On the balance sheet date review the book value of deferred income tax assets. If it is likely 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 likely to obtain sufficient taxable income the
write-down amount shall be returned.
4. The company's current income taxes and deferred income taxes are included in the current profits and losses as
income tax expenses or income but not including income tax arising from the following situations: (1) business
combination; (2) transactions or events directly recognized in owner's equity.
42. Leasing
(1)Accounting treatment for operating lease
As a leassee for the Company rental expense of operating lease is included in the relevant asset costs or current
profits and losses through the straight-line method during every period. Initial direct costs shall be included in
profit or loss for the current period. Contingent rental shall be recorded in the current profits and losses in which
they actually arise.
As a lessor for the Company rental expense of operating lease is included in current profits and losses through the
straight-line method during every period. The initial direct expenses incurred are directly recorded into current
profit/loss except for those with a large amount to be capitalized and recorded into the profit/loss in stages.
Contingent rental shall be recorded in the current profits and losses in which they actually arise.
(2)Accounting treatment for financing lease
Not applicable
43. Other important accounting policy and estimation
Segmental (divisional) report
The Company determines operating divisions based on internal organizational structure management
requirements and internal reporting system. Operating divisions of the Company refers to the component that
meets the following conditions at the same time:
1. this component can generate income and incur expenses in the course of daily activities;
2. the management can evaluate the operating results of this component regularly to determine resources
allocation and evaluate its performance;
3. be able to obtain relevant accounting information such as the financial status operating results and cash flow of
the component through analysis.
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
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented the
new revenue standards and new leasing standards since 2020
□ Applicable √ Not applicable
Whether need to adjust the balance sheet items at the beginning of the year
□Yes √No
Explain the reasons of no need to adjust the balance sheet items at the beginning of the year
On 5 July 2017 the “Notice Concerning Amendments and Issuance” (Cai Kuai [2017] No.22) (hereinafter referred to as New
Revenue Standard) was issued by Ministry of Finance and requires the enterprises listed in China shall be implemented since 1 Jan.
2020. The Company prepare the disclosure of accounting statement in accordance with the New Revenue Standard since 1 Jan. 2020
and there is no need to retroactively adjust the comparability number in 2019 change of the accounting policy will not affect relevant
financial indicators of the Company for 2019.
(4) Retrospective adjustment of early comparison data description when implemented the new revenue
standards and new leasing standards since 2020
□ Applicable √ Not applicable
45. Other
IV. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
VAT Selling goods or providing taxable services 13% 11% 9% 5% 6% and 3%
Property tax
Price-based resource tax 1.2 percent of the
remaining value after deducting 30% of the
original value of the property;
1.2%
Urban maintenance and construction tax Turnover tax payable 7%
Educational surtax Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Enterprise income tax Taxable income 20% 25%
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
Shenzhen Xinyongtong Motor Vehicle Testing Equipment Co.Ltd.
20%
Other taxpaying body than the above 25%
2. Tax preferential
According to the “Notice on Implementation of Preferential Tax-reduction & Exemption Policies for Small &Micro Enterprises”(Cai Shui [2019] No.13) issued by SAT (State Administration of Taxation) Shenzhen
Xinyongtong Automobile Inspection Equipment Co. Ltd enjoys the preferential tax policies for small & micro
enterprises with enterprise income tax at the rate of 20%.
3. Other
V. Annotation to main items of consolidated financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 52095.50 120351.17
Cash in bank 333557214.12 428731254.87
Total 333609309.62 428851606.04
The total amount of money that
has restrictions on use due to mortgage
pledge or freezing
28671414.00 28183348.23
Other explanation:
Up to 30 June 2020 the Company’s right to use of currency funds under restrictions is 28671414.00 yuan which
is the supervision fund by the Company developed the land plot 03 project of the upgrading project of
Tellus-Gman Gold Jewelry Industrial Park.
2. Tradable financial assets
In RMB
Item Ending balance Opening balance
Financial assets measured by fair value and
with variation reckoned into current
gains/losses
115128569.86 60486575.34
Including:
Debt instrument investment 115128569.86 60486575.34
Including:
Total 115128569.86 60486575.34
Other explanation:
3. Derivative financial assets
Not applicable
4. Note receivable
Not applicable
5. Account receivable
(1) Category
In RMB
Category
Ending balance Opening balance
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Account receivable
with bad debt
provision accrual on
a single basis
491258
62.29
44.59%
491258
62.29
100.00%
4912586
2.29
30.16%
4912586
2.29
100.00%
Including:
Account receivable
with bad debt
provision accrual on
portfolio
610573
95.46
55.41%
538319.
76
0.88%
6051907
5.70
1137507
31.59
69.84%
1137507
.32
1.00%
11261322
4.27
Including:
Total
110183
257.75
100.00%
496641
82.05
45.07%
6051907
5.70
1628765
93.88
100.00%
5026336
9.61
30.86%
11261322
4.27
Bad debt provision accrual on single basis:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Jinlu Industry
and Trade Co. Ltd.
9846607.00 9846607.00 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Guangdong Zhanjiang
Sanxing Auto Service
Co. Ltd.
4060329.44 4060329.44 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Wang Changlong 2370760.40 2370760.40 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Huizhou Jiandacheng
Daoqiao Engineering
Company
2021657.70 2021657.70 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Jiangling Automobile
Factory
1191059.98 1191059.98 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Yangjiang Auto Trade
Co. Ltd.
1150000.00 1150000.00 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Guangdong Materials
Group Corp
1862000.00 1862000.00 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Other 26623447.77 26623447.77 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Total 49125862.29 49125862.29 --
Bad debt provision accrual on portfolio:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Aging portfolio 19577459.23 123520.40 0.63%
Jewelry sales business portfolio 41479936.23 414799.36 1.00%
Total 61057395.46 538319.76
Explanation on portfolio determines:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other account receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including one year) 61057395.46
Over 3 years 49125862.29
Over 5 years 49125862.29
Total 110183257.75
(2) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category Opening balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written-off Other
Accounts
receivable with
single item
provision for bad
debts
49125862.29 49125862.29
Accounts
receivable with
provision for bad
debts by
combination
1137507.32 414799.36 1013986.92 538319.76
Total 50263369.61 414799.36 1013986.92 49664182.05
(3) Account receivable actually written-off in the period
Not applicable
(4) Top 5 account receivables at ending balance by arrears party
In RMB
Enterprise
Ending balance of accounts
receivable
Proportion in total receivables at
ending balance
Bad debt preparation ending
balance
Shenzhen Jinlu Industry
and Trade Co. Ltd.
9846607.00 8.94% 9846607.00
Guangdong Zhanjiang
Sanxing Auto Service Co.Ltd.
4060329.44 3.69% 4060329.44
Shenzhen Shangjinyuan 3246835.81 2.95% 32468.36
Jewelry Industry Co. Ltd.Tan Changyun 2969392.64 2.69% 29693.93
Wang Changlong 2370760.40 2.15% 2370760.40
Total 22493925.29 20.42% 16339859.13
(5) Account receivable derecognition due to financial assets transfer
Not applicable
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Not applicable
6. Account receivable financing
In RMB
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
7. Accounts paid in advance
(1) By account age
In RMB
Account age
Ending balance Opening balance
Amount Ratio Amount Ratio
Within one year 17075615.18 99.93% 12671077.95 99.90%
1-2 years 632.00 0.00% 632.00 0.00%
Over 3 years 11893.94 0.07% 11893.94 0.09%
Total 17088141.12 100.00% 12683603.89 100.00%
(2) Top 5 account paid in advance at ending balance by prepayment object
Name Ending balance Proportion in prepayment balance at
the end of period (%)
FAW Toyota Motor Sales Co. Ltd. 8794912.61 51.47%
Beijing Fugong Lide Technology Development 3114328.95 18.23%
Co. Ltd.
Toyota Motor (China) Investment Co. Ltd. 2033274.00 11.90%
Shenzhen Dingye Building Decoration
Engineering Co. Ltd.
1198130.04 7.01%
Alight Automotive Technology Co. Ltd. 702764.09 4.11%
Total 15843409.69 92.72%
8. Other account receivable
In RMB
Item Ending balance Opening balance
Dividend receivable 39647732.42 39647732.42
Other account receivable 5969946.53 5260813.98
Total 45617678.95 44908546.40
(1) Interest receivable
Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested unit) Ending balance Opening balance
China Pudong Development Machinery
Industry Co. Ltd
547184.35 547184.35
Shenzhen Dongfeng Motor Co. Ltd. 39100548.07 39100548.07
Total 39647732.42 39647732.42
2) Important dividend receivable with account age over one year
Not applicable
3) Accrual of bad debt provision
□ Applicable √Not applicable
(3) Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Deposit margin 191787.80 35477.21
Reserve fund 195000.00 43385.72
Interim payment receivable 57937858.58 57536664.77
Total 58324646.38 57615527.70
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on Jan. 1 2020 2515818.56 49838895.16 52354713.72
Balance of Jan. 1 2020
in the period
—— —— —— ——
Current accrual 17.90 17.90
Current switch back 31.77 31.77
Balance on Jun. 30 2020 2515804.69 49838895.16 52354699.85
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including one year) 3383256.24
1-2 years 110132.23
2-3 years 116202.70
Over 3 years 54715055.21
3-4 years 25191.12
4-5 years 251466.43
Over 5 years 54438397.66
Total 58324646.38
3) Bad debt provision accrual collected or reversal in the period
Bad debt provision accrual in the period:
In RMB
Category Opening balance
Amount changed in the period
Ending balance
Accrual
Collected or
reversal
Written off Other
Provision for bad
debts by
combination
52354713.72 17.90 31.77 52354699.85
Total 52354713.72 17.90 31.77 52354699.85
4) Other account receivable actually written-off in the period
Not applicable
5) Top 5 other receivables at ending balance by arrears party
In RMB
Enterprise Nature Ending balance Account age
Ratio in total ending
balance of other
account receivables
Ending balance of
bad debt reserve
Zhongqi South
China Auto Sales
Company
Intercourse funds 9832956.37 Over 3 years 16.86% 9832956.37
South Industry &
TRADE Shenzhen
Industrial Company
Intercourse funds 7359060.75 Over 3 years 12.62% 7359060.75
Shenzhen Zhonghao
(Group) Co. Ltd
Intercourse funds 5000000.00 Over 3 years 8.57% 5000000.00
Shenzhen Kaifeng
Special Automobile
Industry Co. Ltd.Intercourse funds 4413728.50 Over 3 years 7.57% 4413728.50
Gold Beili Electrical
Appliances
Company
Intercourse funds 2706983.51 Over 3 years 4.64% 2706983.51
Total -- 29312729.13 -- 50.26% 29312729.13
6) Other account receivables related to government grants
Not applicable
7) Other receivable for termination of confirmation due to the transfer of financial assets
Not applicable
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Not applicable
9. Inventories
Does the company need to comply with the disclosure requirements of the real estate industry
No
(1) Category
In RMB
Item
Ending balance Opening balance
Book balance
Provision for
inventory
depreciation or
contract
performance cost
impairment
provision
Book value Book balance
Provision for
inventory
depreciation or
contract
performance cost
impairment
provision
Book value
Raw materials 15148137.86 14772382.17 375755.69 15079409.32 14772382.17 307027.15
Inventory 28859715.44 14121481.67 14738233.77 35204057.35 14121481.67 21082575.68
Total 44007853.30 28893863.84 15113989.46 50283466.67 28893863.84 21389602.83
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Item Opening balance
Current amount increased Current amount decreased
Ending balance
Accrual Other
Reversal or
write-off
Other
Raw materials 14772382.17 14772382.17
Inventory 14121481.67 14121481.67
Total 28893863.84 28893863.84
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
Not applicable
(4) Description of the current amortization amount of contract performance costs
Not applicable
10. Contract assets
Not applicable
11. Assets held for sale
Not applicable
12. Non-current asset due within one year
Not applicable
13. Other current assets
In RMB
Item Ending balance Opening balance
Input VAT to be deducted 2970702.64 3403969.23
Total 2970702.64 3403969.23
14. Creditors’ investment
Not applicable
15. Other creditors’ investment
Not applicable
16. Long-term account receivable
(1) Long-term account receivable
In RMB
Item
Ending balance Opening balance
Discount rate
interval Book balance
Bad debt
provision
Book value Book balance
Bad debt
provision
Book value
Related
transactions
2179203.68 2179203.68 2179203.68 2179203.68
Total 2179203.68 2179203.68 2179203.68 2179203.68 --
Impairment of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance of Jan. 1 2020 2179203.68 2179203.68
Balance of Jan. 1 2020
in the period
—— —— —— ——
Balance of Jun. 30 2020 2179203.68 2179203.68
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
Not applicable
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Not applicable
17. Long-term equity investment
In RMB
The
invested
entity
Opening
balance
(book
value)
Current changes (+-)
Ending
balance
(book
value)
Ending
balance
of
impairme
nt
provision
Additiona
l
investmen
t
Capital
reduction
Investme
nt gains
recognize
d under
equity
Other
comprehe
nsive
income
adjustmen
t
Other
equity
change
Cash
dividend
or profit
announce
d to
issued
Accrual
of
impairme
nt
provision
Other
I. Joint venture
Shenzhen
Tellus
Gman
Investme
nt Co.
7015538
3.50
4039637
.29
7419502
0.79
Ltd
Shenzhen
Tellus
Hang
Investme
nt Co.
Ltd.
1184545
2.17
300297.7
6
1214574
9.93
Subtotal
8200083
5.67
4339935
.05
8634077
0.72
II. Associated enterprise
Shenzhen
Zung Fu
Tellus
Auto
Service
Co. Ltd.
3331373
2.20
4376011
.38
3768974
3.58
Shenzhen
Automobi
le
Industry
Import
and
Export
Co. Ltd.
2026407
.98
-345335.
82
1681072
.16
Shenzhen
Dongfeng
Motor
Co. Ltd.
4483756
8.20
151256.2
3
4498882
4.43
Shenzhen
Xinyongt
ong Oil
Pump
Environm
ent
Protection
Co. Ltd.
127836.5
9
Shenzhen
Xinyongt
ong
Consultan
t Co. Ltd.
41556.83
Shenzhen
Tellus
Automobi
le Service
Chain
Co. Ltd.
[Note 3]
Shenzhen
Xinyongt
ong Auto
Service
Co.
Ltd.[ Not
e 3]
Shenzhen
Xinyongt
ong
Dongxiao
Auto
Service
Co.
Ltd.[ Not
e 3]
Shenzhen
Yongtong
Xinda
Inspectio
n
Equipmen
t Co.
Ltd.[ Not
e 3]
Hunan
Changyan
g
Industrial
Co.
Ltd.[ Not
e 1]
1810540
.70
Shenzhen
Jiecheng
Electronic
Co.
3225000
.00
Ltd.[ Not
e 1]
Shenzhen
Xiandao
New
Materials
Co.
Ltd.[ Not
e 1]
4751621
.62
China
Auto
Industrial
Shenzhen
Trading
Company
[Note 1]
400000.0
0
Shenzhen
General
Standard
Co.
Ltd.[ Not
e 1]
500000.0
0
Shenzhen
Zhongqi
South
China
Auto
Sales
Company
[Note 1]
2250000
.00
Shenzhen
Bailiyuan
Power
Supply
Co.
Ltd.[ Not
e 1]
1320000
.00
Shenzhen
Yimin
Auto
Trading
Company
200001.1
0
[Note 1]
Shenzhen
Torch
Spark
Plug
Industry
Company
17849.20
Shenzhen
Hanligao
Technolo
gy
Ceramics
Co.
Ltd.[ Not
e 2]
1956000
.00
Shenzhen
South
Auto
Maintena
nce
Center[N
ote 2]
6700000
.00
Subtotal
8017770
8.38
4181931
.79
8435964
0.17
2330040
6.04
Total
1621785
44.05
8521866
.84
1707004
10.89
2330040
6.04
Other explanation:
[Note 1]: These companies have revoked their industrial and commercial registrations and the company has made
full provision for impairment of such long-term equity investments.[Note 2]: The operating period of Shenzhen Hanligao Technology Ceramics Co. Ltd was from September 21
1993 to September 21 1998 and the operation period of Shenzhen South Auto Maintenance Center was from July
12 1994 to July 11 2002 these companies have ceased operations for many years and their business registrations
have been revoked because they did not participate in the annual industrial and commercial inspection. The
Company has been unable to exercise effective control over these companies and these companies are not
included in the consolidation scope of the Company's consolidated financial statements the Company's
investment in these companies book value is zero.[Note 3]: Book balance of these long-term equity investment is adjusted for profit and loss in accordance with the
equity method the book balance is 0 yuan.18. Other equity instrument investment
In RMB
Item Ending balance Opening balance
China Pudong Development Machinery
Industry Co. Ltd
10176617.20 10176617.20
Total 10176617.20 10176617.20
19. Other non-current financial assets
Not applicable
20. Investment real estate
(1) Measured at cost
√ Applicable □Not applicable
In RMB
Item House and building Land use right Construction in progress Total
I. Original book value
1.Opening balance 614240458.56 49079520.00 663319978.56
2.Current amount
increased
(1) Outsourcing
(2) Inventory\fixed
assets\construction in
process transfer-in
(3) Increased by
combination
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 614240458.56 49079520.00 663319978.56
II. Accumulated
depreciation and
accumulated
amortization
1.Opening balance 107605031.33 1115443.68 108720475.01
2.Current amount
increased
8543675.81 557518.39 9101194.20
(1) Accrual or
amortization
8543675.81 557518.39 9101194.20
3.Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 116148707.14 1672962.07 117821669.21
III. Impairment provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3. Current amount
decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending book value 498091751.42 47406557.93 545498309.35
2. Opening book value 506635427.23 47964076.32 554599503.55
(2) Measure at fair value
□ Applicable √Not applicable
(3) Investment real estate without property certificate completed
In RMB
Item Book value Reasons
Shuibei Jewelry Building Phase I (Houses
and Buildings)
417743515.67
Uncompleted settlement failure to handle
the ownership certificate
12 buildings in Sungang 16267.01
Failure to handle the ownership
certificate for historical reasons
12 building shops in Sungang 50731.71
Failure to handle the ownership
certificate for historical reasons
Total 417810514.39
21. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 104203903.95 107119796.59
Total 104203903.95 107119796.59
(1) Fixed assets
In RMB
Item
House and
buildings
Machinery
equipment
Transport
equipment
Electronic
equipment
Office and
other
equipment
Self-owned
house
decoration fee
Total
I. Original
book value:
1.Opening
balance
266262162.27 11370001.49 5187935.34 9732341.99 3030248.40 2697711.99 298280401.48
2.Current
amount
increased
115167.00 219281.00 301125.77 848167.16 1483740.93
(1)
Purchase
115167.00 219281.00 301125.77 848167.16 1483740.93
(2)
Construction in
progress
transfer-in
(3)
Increased by
combination
3.Current
amount
decreased
246687.67 52940.15 299627.82
(1)
Disposal or
scrap
246687.67 52940.15 299627.82
4.Ending
balance
266262162.27 11238480.82 5407216.34 9980527.61 3878415.56 2697711.99 299464514.59
II.
Accumulated
depreciation
1.Opening
balance
164059471.10 8364746.10 3201785.74 6873351.21 1999468.42 2416329.26 186915151.83
2.Current
amount
increased
3554259.68 179885.22 207648.08 301413.58 126255.78 4369462.34
(1)
Accrual
3554259.68 179885.22 207648.08 301413.58 126255.78 4369462.34
3.Current
amount
decreased
222018.92 47437.67 269456.59
(1)
Disposal or
scrap
222018.92 47437.67 269456.59
4.Ending
balance
167613730.78 8322612.40 3409433.82 7127327.12 2125724.20 2416329.26 191015157.58
III. Impairment
provision
1.Opening
balance
3555385.70 319675.11 6165.00 17984.71 64859.81 281382.73 4245453.06
2.Current
amount
increased
(1)
Accrual
3.Current
amount
decreased
(1)
Disposal or
scrap
4.Ending
balance
3555385.70 319675.11 6165.00 17984.71 64859.81 281382.73 4245453.06
IV. Book value
1.Ending
book value
95093045.79 2596193.31 1991617.52 2835215.78 1687831.55 104203903.95
2. Opening
book value
98647305.47 2685580.28 1979984.60 2841006.07 965920.17 107119796.59
(2) Temporarily idle fixed assets
Not applicable
(3) Fixed assets by financing leased
Not applicable
(4) Fixed assets leased out by operation
Not applicable
(5) Fix assets without property certification held
In RMB
Item Book value
Reasons for without the property
certification
Yongtong Building
32456952.25
Failure to handle the ownership certificate
for historical reasons
Automotive building 16023300.79
Failure to handle the ownership certificate
for historical reasons
Tellus Building underground parking
9248131.94
Parking lot is un-able to carried out the
certificate
Nuclear Office build
4760273.67
Failure to handle the ownership certificate
for historical reasons
1#2# and 3-5/F 3# plant of Taoyuan Road 3650542.96
Failure to handle the ownership certificate
for historical reasons
Tellus Building transformation layer 1594452.32 Un-able to carried out the certificate
16# Taohua Garden 1435947.00
Failure to handle the ownership certificate
for historical reasons
Shuibei Zhongtian comprehensive building
934803.54
Failure to handle the ownership certificate
for historical reasons
First floor of Bao’an commercial-residence
build
919474.29
Failure to handle the ownership certificate
for historical reasons
Warehouse 861346.33
Failure to handle the ownership certificate
for historical reasons
Trade department warehouse 74798.77
Failure to handle the ownership certificate
for historical reasons
Songquan Apartment (mixed) 11203.94
Failure to handle the ownership certificate
for historical reasons
Hostel of Renmin North Road
5902.41
Failure to handle the ownership certificate
for historical reasons
Subtotal 71977130.21
Other explanation
(6) Fixed assets disposal
Not applicable
22. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 74408194.38 47654393.55
Total 74408194.38 47654393.55
(1) Construction in progress
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Tellus Shuibei
Jewelry Building
50643962.68 50643962.68 35321704.26 35321704.26
Phase II
421 Factory
Reconstruction
and Upgrade Item
18249388.95 18249388.95 8593316.07 8593316.07
Phase I and Phase
II Underground
Connection
Project
4679302.48 4679302.48 3710247.00 3710247.00
Treasure Item 835540.27 835540.27 29126.22 29126.22
Total 74408194.38 74408194.38 47654393.55 47654393.55
(2) Changes of major construction in progress
In RMB
Item
Name
Budget
Opening
balance
Current
amount
increased
Transfer-
in fixed
assets
Other
decrease
d in the
Period
Ending
balance
Proporti
on of
project
investme
nt in
budget
Progress
Accumul
ated
capitaliz
ation of
interest
Includin
g:
amount
of
capitaliz
ation of
interest
in Period
Interest
capitaliz
ation rate
in Period
Tellus
Shuibei
Jewelry
Building
Phase II
353217
04.26
153222
58.42
506439
62.68
9.83% 9.83% Other
421
Factory
Reconstr
uction
and
Upgrade
Item
859331
6.07
965607
2.88
182493
88.95
61.01% 61.01% Other
Phase I
and
Phase II
Undergr
ound
Connecti
on
Project
371024
7.00
969055.
48
467930
2.48
94.34% 94.34% Other
Treasure
Item
29126.2
2
806414.
05
835540.
27
1.67% 1.67% Other
Total
476543
93.55
267538
00.83
744081
94.38
-- -- --
(3) The provision for impairment of construction in progress
Not applicable
(4) Engineering material
Not applicable
23. Productive biological asset
(1) Measured by cost
□ Applicable √Not applicable
(2) Measured by fair value
□ Applicable √Not applicable
24. Oil and gas asset
□ Applicable √Not applicable
25. Right-of-use asset
Not applicable
26. Intangible assets
(1) Intangible assets
In RMB
Item Land use right Patent
Non-patent
technology
Total
I. Original book
value
1.Opening
balance
50661450.00 128500.00 1582145.00 52372095.00
2.Current 46017.70 46017.70
amount increased
(1) Purchase 46017.70 46017.70
(2) internal
R&D
(3)
Increased by
combination
3.Current amount
decreased
(1) Disposal
4.Ending
balance
50661450.00 128500.00 1628162.70 52418112.70
II. Accumulated
depreciation
1.Opening
balance
713015.84 89622.68 1008230.81 1810869.33
2.Current
amount increased
538721.58 2674.98 97335.90 638732.46
(1) Accrual 538721.58 2674.98 97335.90 638732.46
3.Current
amount decreased
(1) Disposal
4.Ending
balance
1251737.42 92297.66 1105566.71 2449601.79
III. Impairment
provision
1.Opening
balance
2.Current
amount increased
(1) Accrual
3.Current
amount decreased
(1) Disposal
4.Ending
balance
IV. Book value
1.Ending book
value
49409712.58 36202.34 522595.99 49968510.91
2. Opening
book value
49948434.16 38877.32 573914.19 50561225.67
(2) Land use rights without certificate of ownership
Not applicable
27. Expense on Research and Development
Not applicable
28. Goodwill
Not applicable
29. Long-term expenses to be apportioned
In RMB
Item Opening balance
Current amount
increased
Current amortization Other decreased Ending balance
Renovation costs 13606805.49 337672.41 1049167.62 12895310.28
Total 13606805.49 337672.41 1049167.62 12895310.28
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Item
Ending balance Opening balance
Deductible temporary
differences
Deferred income tax
asset
Deductible temporary
differences
Deferred income tax
asset
Asset impairment
provision
34557965.16 8639491.29 34635849.55 8658962.39
Total 34557965.16 8639491.29 34635849.55 8658962.39
(2) Deferred income tax liability without offset
Not applicable
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item
Trade-off between the
deferred income tax
assets and liabilities
Ending balance of
deferred income tax
assets or liabilities after
off-set
Trade-off between the
deferred income tax
assets and liabilities at
period-begin
Opening balance of
deferred income tax
assets or liabilities after
off-set
Deferred income tax
asset
8639491.29 8658962.39
(4) Details of uncertain deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 126645220.59 127244422.02
Deductible loss 19619056.75 19619056.75
Total 146264277.34 146863478.77
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2020 505851.30 505851.30
2021 1484364.61 1484364.61
2022 4702701.91 4702701.91
2023 5499309.62 5499309.62
2024 7426829.31 7426829.31
Total 19619056.75 19619056.75 --
31. Other non-current asset
In RMB
Item
Ending balance Opening balance
Book balance Provision for Book value Book balance Provision for Book value
impairment impairment
Advance payment for engineering
equipment
8483308.88 8483308.88 6789167.54 6789167.54
Information construction fund 933740.18 933740.18
Other 100000.00 100000.00 100000.00 100000.00
Total 9517049.06 9517049.06 6889167.54 6889167.54
Other explanation:
32. Short-term loans
(1) Category
Not applicable
33. Tradable financial liability
Not applicable
34. Derivative financial liability
Not applicable
35. Note payable
Not applicable
36. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Purchase of goods and services 8863245.61 5671144.03
Engineering equipment 58728301.55 63416286.39
Total 67591547.16 69087430.42
(2) Major accounts payable with age over one year
In RMB
Item Ending balance Reasons of outstanding or carry-over
Shenzhen Yinglong Jian’an (Group) Co. 28503133.19 Project unsettled
Ltd.Shenzhen SDG Real Estate Co. Ltd 6054855.46 Unrepayment from related enterprise
Shenzhen Yinuo Construction Engineering
Co. Ltd.
4274022.22 Project unsettled
Total 38832010.87 --
37. Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Rent 158872.79 491560.38
Payment 14257422.49 26808262.33
Total 14416295.28 27299822.71
38. Contractual liabilities
Not applicable
39. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
compensation
30503178.16 36875035.83 36555731.04 30822482.95
II. After-service
welfare-defined
contribution plans
701616.73 384408.27 916481.15 169543.85
III. Dismissed welfare 360836.00 360836.00
Total 31204794.89 37620280.10 37833048.19 30992026.80
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wage bonus
allowance and subsidy
28178495.98 33551443.96 32787768.34 28942171.60
2. Employees’ welfare 469358.91 469358.91
3. Social insurance
charges
8358.59 622767.82 631126.41
Including: medical
insurance premium
7172.62 543280.30 550452.92
Industrial injury
insurance premiums
513.72 2473.22 2986.94
Maternity insurance
premiums
672.25 77014.30 77686.55
4. Housing public reserve 2041648.34 1755734.00 2173133.46 1624248.88
5. Trade union fee and
education fee
274675.25 475731.14 494343.92 256062.47
Total 30503178.16 36875035.83 36555731.04 30822482.95
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
insurance premiums
142418.85 381168.57 523587.42
2. Unemployment
insurance premiums
1352.03 3239.70 4591.73
3. Enterprise annuity 557845.85 388302.00 169543.85
Total 701616.73 384408.27 916481.15 169543.85
40. Taxes payable
In RMB
Item Ending balance Opening balance
VAT -358235.15 551626.76
Enterprise income tax 6435910.05 64461051.35
Personal income tax 339337.61 342986.08
Urban maintenance and construction tax 137895.89 134816.64
Land VAT 5362682.64 5362682.64
House property tax 811135.85 266.04
Use tax of land 135831.92 26459.98
Educational surtax 83895.38 82529.27
Local education surcharges 55930.25 55019.51
Stamp tax 143335.03 407829.34
Other 11811.88
Total 13159531.35 71425267.61
Other explanation:
41. Other account payable
In RMB
Item Ending balance Opening balance
Other account payable 99453009.14 101266802.49
Total 99453009.14 101266802.49
(1) Interest payable
Not applicable
(2) Dividend payable
Not applicable
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Deposit margin 34097428.62 29630854.41
Related transactions 28310337.10
Withholding payments 30877029.60 14218478.78
Payable interim payment 34478550.92 29107132.20
Total 99453009.14 101266802.49
2) Significant other account payable with over one year age
Not applicable
42. Liability held for sale
Not applicable
43. Non-current liabilities due within one year
Not applicable
44. Other current liabilities
Not applicable
45. Long-term loans
Not applicable
46. Bonds payable
Not applicable
47. Lease liability
Not applicable
48. Long-term account payable
In RMB
Item Ending balance Opening balance
Long-term account payable 3920160.36 3920160.36
Total 3920160.36 3920160.36
(1) By nature
In RMB
Item Ending balance Opening balance
Deposit of staff residence 3908848.40 3908848.40
Allocation for technology innovation
projects
11311.96 11311.96
Total 3920160.36 3920160.36
(2) Special account payable
Not applicable
49. Long-term wage payable
Not applicable
50. Accrual liabilities
In RMB
Item Ending balance Opening balance Causes
Pending litigation 2225468.76 2225468.76
For details please refer to note
XIV 2 (2) of this financial
statement
Total 2225468.76 2225468.76 --
51. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Government
subsidies
139400.00 139400.00
Receive government
subsidies
Total 139400.00 139400.00 --
Item with government grants involved:
In RMB
Liability
Opening
balance
New grants
in the Period
Amount
reckoned in
non-operatio
n revenue
Amount
reckoned in
other income
Cost
reduction in
the period
Other
changes
Ending
balance
Assets-relate
d/income
related
Elevator
Renewal
Subsidy Fund
for Futian
District Old
Elevator
Renovation
Working
Group
139400.00 139400.00
Assets-relate
d
52. Other non-current liabilities
Not applicable
53. Share capital
In RMB
Opening
balance
Increased (decreased) in this period+-
Ending balance
New shares
issued
Bonus shares
Shares
converted from
public reserve
Other Subtotal
Total shares 431058320.00 431058320.00
54. Other equity instrument
Not applicable
55. Capital public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
capital premium)
425768053.35 425768053.35
Other capital reserve 5681501.16 5681501.16
Total 431449554.51 431449554.51
56. Treasury stock
Not applicable
57. Other comprehensive income
In RMB
Item
Opening
balance
Current Period
Ending
balance
Account
before
income tax
in the
period
Less: written
in other
comprehensi
ve income in
previous
period and
carried
forward to
gains and
losses in
current
period
Less:
written in
other
comprehe
nsive
income in
previous
period and
carried
forward to
retained
earnings in
Less : income
tax expense
Belong to
parent
company
after tax
Belong to
minority
shareholders
after tax
current
period
II. Other comprehensive income
items which will be reclassified
subsequently to profit or loss
26422.00
26422.0
0
Including: Other comprehensive
income under equity method that
can transfer to gain/loss
26422.00
26422.0
0
Total other comprehensive income 26422.00
26422.0
0
58. Reasonable reserve
Not applicable
59. Surplus public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
reserves
21007488.73 21007488.73
Total 21007488.73 21007488.73
60. Retained profit
In RMB
Item Current period Last period
Retained profit at the end of the previous period
before adjustment
387423510.78 184535322.70
Adjust the total Retained profits at the beginning
of the period (Increase + Decrease -)
1079805.36
Total retained profit at the beginning of the
previous period before adjustment
387423510.78 185615128.06
Add: net profit attributable to shareholder of
parent company
25594985.78 219669708.47
Less: withdrawal of legal surplus reserve 17861325.75
Common stock dividends payable 18104449.44
Retained profit at period-end 394914047.12 387423510.78
61. Operating income and operating cost
In RMB
Item
Current period Last period
Income Cost Income Cost
Main business 193056348.40 153545320.45 274182882.36 209294422.75
Other business 3995441.89 1229267.07 4085856.97 1199589.67
Total 197051790.29 154774587.52 278268739.33 210494012.42
Income related information
In RMB
Contract classification Division 1 Division 2 Total
Including:
Auto sales 98797491.83
Automobile inspection
and maintenance and
parts sales
19138132.58
Property leasing and
services
62152861.68
Jewelry wholesale and
retail
16963304.20
Including:
Shenzhen 180088486.09
Sichuan 16963304.20
62. Tax and surcharges
In RMB
Item Current period Last period
Consumption tax 228067.46
Urban maintenance and construction tax 273827.41 395934.29
Education surcharge 195109.16 282810.15
House property tax 554437.90 1686527.43
Use tax of land 365803.85 218743.88
Stamp duty 82782.69 152809.21
Other taxes -95233.44 3272.64
Total 1376727.57 2968165.06
63. Sales expenses
In RMB
Item Current period Last period
Staff remuneration 4368623.68 6075124.02
Advertising and exhibition expenses 190434.21 238736.65
Depreciation and amortization 762935.85 710671.25
Office expenses 266706.77 283392.38
Property and utilities 371102.25 141178.84
Transportation and business trip cost 6650.61 147134.39
Other 809691.17 1762276.76
Total 6776144.54 9358514.29
64. Administration expenses
In RMB
Item Current period Last period
Staff remuneration 13255712.63 13660961.91
Office expenses 522602.46 631367.84
Transportation and business trip cost 105949.65 159511.67
Business entertainment expenses 103117.88 257293.90
Depreciation and amortization 989192.76 1027310.00
Consulting and service expenses 1270520.91 528616.99
Other 954904.32 613566.95
Total 17202000.61 16878629.26
65. R&D expenses
Not applicable
66. Financial expenses
In RMB
Item Current period Last period
Interest expenses 46986.20 4765937.06
Less: Interest income 2453494.99 1152054.69
Less: interest capitalized amount
Exchange loss 66918.38 10717.33
Other 137439.86 133176.06
Total -2202150.55 3757775.76
67. Other income
In RMB
Sources Current period Last period
VAT input tax deduction 6611.29
Handling fee refund for withholding
personal income tax
36471.10
Other 16375.60
Total 52846.70 6611.29
68. Investment income
In RMB
Item Current period Last period
Long-term equity investment income
measured by equity
8521866.84 10775524.54
Investment income of trading financial assets
during the holding period
4359623.66 5935926.39
Total 12881490.50 16711450.93
69. Net exposure hedge gains
Not applicable
70. Income of fair value changes
In RMB
Sources Current period Last period
Tradable financial assets -356102.35
Total -356102.35
71. Credit impairment loss
In RMB
Item Current period Last period
Loss of bad debt of other account
receivable
599187.56 -184419.32
Loss of bad debt of other account
receivable
13.87 286085.46
Total 599201.43 101666.14
72. Assets impairment loss
Not applicable
73. Income from assets disposal
In RMB
Sources Current period Last period
Income from disposal of non-current assets 103159.68
Total 103159.68
74. Non-operating income
In RMB
Item Current period Last period
Amount included in the current
non-recurring profit and loss
Government grants 230000.00 230000.00
Gains from non-current assets
damaged/scrap
52583.13
Including: Fixed assets 52583.13
Other 716106.92 67042.31 716106.92
Total 946106.92 119625.44
Government grants reckoned into current gains/losses:
In RMB
Grants
Issuing
subject
Issuing cause Property type
Whether the
impact of
subsidies on
the current
profit and
Whether
special
subsidies
Amount of
this period
Amount of
last period
Assets
related/Incom
e related
loss
Government
grants
Luohu
District
Industry and
Information
Technology
Bureau
230000.00
Income
related
Other explanation:
Epidemic subsidy
75. Non-operating expenditure
In RMB
Item Current period Last period
Amount included in the current
non-recurring profit and loss
Other 29059.48 833400.00 29059.48
Total 29059.48 833400.00 29059.48
76. Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Current income tax expenses 6407943.06 5997893.76
Deferred income tax expenses 19471.10 19471.10
Adjustment for precious period 20891.90 20891.90
Total 6448306.06 6038256.76
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Item Current period
Total profit 33218964.32
Income tax expenses calculated by statutory tax rate 8304741.08
Effect of adjusting income tax in the previous period 20891.90
Impact of non taxable income -2130466.71
Unrecognized impacts of deductible temporary differences or
deductible losses on deferred income tax assets in the period
253139.79
Income tax expenses 6448306.06
77. Other comprehensive income
Found more in annotations
78. Annotation of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
Item Current period Last period
Deposit margin 3272399.10 23334956.48
Interest income 1643158.09 565912.47
Intercourse funds and other 33302872.31 6387138.07
Total 38218429.50 30288007.02
Note of cash paid with other operating activities concerned:
(2) Cash paid with other operating activities concerned
In RMB
Item Current period Last period
Cash paid 18510703.27 13629937.63
Deposit margin 734563.26 15893485.00
Intercourse funds and other 29438222.21 639082.23
Total 48683488.74 30162504.86
(3) Cash received with other investment activities concerned
In RMB
Item Current period Last period
Received equity transfer payment 20870000.00
Total 20870000.00
(4) Cash paid related with investment activities
Not applicable
(5) Cash received with other financing activities concerned
Not applicable
(6) Other cash paid related with financing activities
Not applicable
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last period
1. Net profit adjusted to cash flow of
operation activities:
-- --
Net profit 26770658.26 44982499.26
Add: Impairment provision for assets -599201.43 -101666.14
Depreciation of fixed assets consumption of
oil assets and depreciation of productive
biology assets
11167637.52 11806505.67
Amortization of intangible assets 638732.46 670462.14
Amortization of long-term pending expenses 764042.88 527299.42
Loss from disposal of fixed assets intangible
assets and other long-term assets (income is
listed with “-”)
-101666.14
Losses on scrapping of fixed assets (incomeis listed with “-“)
23933.75 -52583.13
Loss from change of fair value (income islisted with “-“)
356102.35
Financial expenses (income is listed with
“-”)
46986.20 4765937.06
Investment loss (income is listed with “-”) -12881490.50 -16711450.93
Decrease of deferred income tax assets
(increase is listed with “-”)
19471.10 19471.10
Decrease of inventory (increase is listed with
“-”)
6275613.37 -4455508.57
Decrease of operating receivable accounts
(increase is listed with “-”)
48012932.94 -29044227.74
Increase of operating payable accounts -63289096.70 15128987.30
(decrease is listed with “-”)
Net cash flow arising from operating
activities
17306322.20 27434059.30
2. Material investment and financing not
involved in cash flow
-- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 304937895.62 199241051.16
Less: Balance of cash at year-begin 400668257.81 142848120.69
Net increasing of cash and cash equivalents -95730362.19 56392930.47
(2) Net cash paid for obtaining subsidiary in the Period
Not applicable
(3) Net cash received by disposing subsidiary in the Period
Not applicable
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 304937895.62 400668257.81
Including: Cash on hand 52095.50 120351.17
Bank deposit available for payment
at any time
304885800.12 400547906.64
III. Balance of cash and cash equivalent at
period-end
304937895.62 400668257.81
Including: Cash and cash equivalent with
restriction used by parent company or
subsidiary in the Group
28671414.00 28183348.23
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Reasons for restriction
Monetary fund 28671414.00
Upgrading project of the Tellus-Gman
Gold & Jewelry Industrial Park -
supervision funds for the 03# land
Total 28671414.00 --
82. Foreign currency monetary
(1) Foreign currency monetary
In RMB
Item
Ending foreign currency
balance
Convert rate Ending RMB balance converted
Monetary funds -- --
Including: USD 856.00 7.0795 6060.05
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
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:
Not applicable
84. Government grants
(1) Government grants
In RMB
Category Amount Item
Amount reckoned into current
gains/losses
Elevator Renewal Subsidy Fund
for Futian District Old Elevator
Renovation Working Group
139400.00 Deferred income
Epidemic subsidy 230000.00 Non operating income 230000.00
(2) Government grants rebate
□ Applicable √Not applicable
85. Other
VI. Changes of consolidation range
Not applicable
VII. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary
Main operation
place
Registered place Business nature
Share-holding ratio
Acquired way
Directly Indirectly
Shenzhen Tellus
Xinyongtong
Automobile
Development Co.
Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen
Dongchang
Yongtong
Automobile
Shenzhen Shenzhen Commerce 95.00% Establishment
Inspection Co.Ltd.Shenzhen Bao’an
Shiquan
Industrial Co.Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen SDG
Tellus Real Estate
Co. Ltd.
Shenzhen Shenzhen Manufacture 100.00% Establishment
Shenzhen Tellus
Chuangying
Technology Co.Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen
Xinyongtong
Automobile
Inspection
Equipment Co.
Ltd.Shenzhen Shenzhen Commerce 51.00% Establishment
Shenzhen Auto
Industry and
Trade
Corporation
Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen
Automotive
Industry Supply
Corporation
Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen SDG
Huari Auto
Enterprise Co.
Ltd.Shenzhen Shenzhen Commerce 60.00% Establishment
Shenzhen Huari
Anxin
Automobile
Inspection Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen
Zhongtian
Industrial Co.Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
Shenzhen Huari
TOYOTA
Shenzhen Shenzhen Commerce 60.00% Establishment
Automobile Sales
Service Co. Ltd.
Anhui Tellus
Starlight Jewelry
Investment Co.Ltd.Hefei Hefei Commerce 51.00% Establishment
Anhui Tellus
Starlight Jewelry
Investment Co.Ltd.Hefei Hefei Commerce 60.00% Establishment
Sichuan Tellus
Jewelry Tech.
Co. Ltd.
Chengdu Chengdu Commerce 66.67% Establishment
Shenzhen Tellus
Baoku Supply
Chain
Technology Co.Ltd.Shenzhen Shenzhen Commerce 100.00% Establishment
(2) Important non-wholly-owned subsidiary
In RMB
Subsidiary
Share-holding ratio of
minority
Gains/losses attributable
to minority in the Period
Dividend announced to
distribute for minority in
the Period
Ending equity of
minority
Shenzhen Huari Toyota
Auto Sales Co. Ltd
40.00% -1572.01 1676814.56
Shenzhen SDG Huari
Auto Enterprise Co. Ltd.
40.00% 219946.78 9921880.04
Sichuan Tellus Jewelry
Tech. Co. Ltd.
33.33% 672524.17 3721379.80 51457806.19
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsidia
ry
Ending balance Opening balance
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Shenzhe
n Huari
628038
94.10
456467
5.29
673685
69.39
631765
32.99
631765
32.99
662082
79.12
478091
2.24
709891
91.36
667932
24.94
667932
24.94
Toyota
Auto
Sales
Co. Ltd
Shenzhe
n SDG
Huari
Auto
Enterpris
e Co.
Ltd.
506215
53.07
230962
68.59
737178
21.66
487631
21.55
487631
21.55
484952
44.11
240787
18.09
725739
62.20
481691
29.04
481691
29.04
Sichuan
Tellus
Jewelry
Tech.
Co. Ltd.
153866
160.08
231131.
84
154097
291.92
681426.
00
681426.
00
164965
162.17
255849.
32
165221
011.49
170103
3.97
170103
3.97
In RMB
Subsidiary
Current period Last period
Operating
income
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Operating
income
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Shenzhen
Huari Toyota
Auto Sales
Co. Ltd
119178692.
47
-3930.02 -3930.02 1564040.84
106372651.
09
133522.54 133522.54 3616339.12
Shenzhen
SDG Huari
Auto
Enterprise
Co. Ltd.
16003589.0
1
549866.95 549866.95 -4077786.01
18957565.7
1
-58474.42 -58474.42 -3733976.75
Sichuan
Tellus
Jewelry Tech.
Co. Ltd.
16963304.2
0
2017572.52 2017572.52
59442155.9
5
92578958.7
7
3852200.31 3852200.31
-14716246.5
3
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or
Associated
enterprise
Main operation
place
Registered place Business nature
Share-holding ratio Accounting
treatment on
investment for
joint venture and
associated
enterprise
Directly Indirectly
Shenzhen Tellus
Gman Investment
Co. Ltd
Shenzhen Shenzhen
Investment and
establishment of
industries
50.00%
Equity method
accounting
Shenzhen Zung
Fu Tellus Auto
Service Co. Ltd.Shenzhen Shenzhen Sales of Benz 35.00%
Equity method
accounting
Shenzhen
Dongfeng Motor
Co. Ltd.
Shenzhen Shenzhen
Auto manufacture
and maintain
25.00%
Equity method
accounting
(2) Main financial information of the important joint venture
In RMB
Ending balance/Current period Opening balance/Last period
Shenzhen Tellus Gman Investment Co.Ltd
Shenzhen Tellus Gman Investment Co.Ltd
Current assets 51890128.83 56022041.04
Including: Cash and cash equivalent 8300876.58 9770310.11
Non current assets 364310637.32 363958852.65
Total Assets 416200766.15 419980893.69
Current liabilities 33267810.35 34420126.74
Non current liabilities 234500000.00 245250000.00
Total liabilities 267767810.35 279670126.74
Shareholders' equity attributable to the
parent company
148432955.80 140310766.95
Share of net assets calculated by
shareholding ratio
74216477.90 70155383.48
--Others 74195020.79 70155383.48
Fair value of the equity investment of joint
venture with public offers concerned
37081024.74 41866318.34
Business income 6840207.33 7181939.67
Financial expenses 2693091.50 1685627.29
Income tax expenses 8079274.57 7304384.91
Other comprehensive income 8079274.57 7304384.91
51890128.83 56022041.04
Dividends received from joint venture in
the year
8300876.58 9770310.11
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current period Opening balance/Last period
Shenzhen Zung Fu Tellus
Auto Service Co. Ltd.
Shenzhen Dongfeng
Motor Co. Ltd.Shenzhen Zung Fu Tellus
Auto Service Co. Ltd.
Shenzhen Dongfeng
Motor Co. Ltd.
Current assets 230248569.76 435453513.27 229415509.00 479352285.14
Non current assets 38674818.99 212332449.42 22735996.00 214963230.31
Total Assets 268923388.75 647785962.69 252151505.00 694315515.45
Current liabilities 149717250.16 417995210.15 156969413.00 459613457.00
Non current liabilities 16462156.27 65811471.27 66941248.16
Total liabilities 166179406.43 483806681.42 156969413.00 526554705.16
-13887156.97 -11589462.52
Minority interests 102743982.32 177866438.24 95182092.00 179350272.81
Shareholders' equity
attributable to the parent
company
35960393.81 44466609.56 33313732.20 44837568.20
—Unrealized profit of
internal trading
37689743.58 44988824.43 33313732.20 44837568.20
Book value of equity
investment in associated
enterprise
542501386.62 154117515.10 568266810.59 219400462.98
Fair value of the equity
investment of associated
enterprise with public
offers concerned
12502889.67 -345684.65 12457996.18 10121106.72
Net profit of the
termination of operation
12502889.67 -345684.65 12457996.18 10121106.72
Other comprehensive
income
17500000.00 64100548.07
Total comprehensive
income
230248569.76 435453513.27 229415509.00 479352285.14
38674818.99 212332449.42 22735996.00 214963230.31
Dividends received from
associated enterprise in
the year
268923388.75 647785962.69 252151505.00 694315515.45
Other explanation
(4) Financial summary for non-important Joint venture and associated enterprise
In RMB
Ending balance/Current period Opening balance/Last period
Joint venture: -- --
Total book value of investment 12145749.93 11845452.17
Amount based on share-holding ratio -- --
-- Net profit 588819.14 363981.77
-- Total comprehensive income 588819.14 363981.77
Associated enterprise: -- --
Total book value of investment 1681072.16 2026407.98
Amount based on share-holding ratio -- --
-- Net profit -959266.17 -409250.15
-- Total comprehensive income -959266.17 -409250.15
Other explanation:
1. Not important joint venture：Shenzhen Tellus Hang Investment Co. Ltd.
2. Not important associated enterprise: Shenzhen Automobile Industry Import and Export Co. Ltd.
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
In RMB
Joint venture/Associated
enterprise
Cumulative un-recognized
losses
Un-recognized losses not
recognized in the Period (or net
profit enjoyed in the Period)
Cumulative un-recognized
losses at period-end
Shenzhen Yongtong Xinda
Inspection Equipment Co. Ltd.
916937.25 -121989.68 794947.57
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Note of structured body excluding in consolidate financial statement:
Nil
6. Other
VIII. Related party and related transactions
1. Parent company
Parent company Registration place Business nature Registered capital
Ratio of shareholding
on the Company
Ratio of voting right
on the Company
Shenzhen SDG Co.Ltd.Shenzhen
Development and
operation of real
estate and domestic
3582.82 million Yua
n
49.09% 49.09%
commerce
Explanation on parent company of the enterprise
Shenzhen SDG Co. Ltd. is invested by the State-owned Assets Supervision and Administration Commission of Shenzhen Municipal
People's Government and was established on August 1 1981. The company now holds a business license with a unified social credit
code of 91440300192194195C and a registered capital of 3582.82 million yuan.Ultimate controller of the Company is Shenzhen Municipal People’s Government State-Owned Assets Supervision and
Administration Commission.
2. Subsidiary
Subsidiary of the Company found more in Note IX
3. Joint venture and associated enterprise
Joint Venture of the Company found more in Note IX
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period:
Joint venture/Associated enterprise Relationship
Shenzhen Xinyongtong Auto Service Co. Ltd. Associated company
Shenzhen Tellus Xinyongtong Auto Service Co. Ltd. Associated company
Shenzhen Tellus Automobile Service Chain Co. Ltd. Associated company
Shenzhen Yongtong Xinda Inspection Equipment Co. Ltd. Associated company
Shenzhen Xiandao New Material Co. Ltd. Associated company
Shenzhen Tellus Hang Investment Co. Ltd. Joint venture
4. Other related party
Other related party Relationship with the Enterprise
Shenzhen SD Petty Loan Co. Ltd. Holding subsidiary of the parent company
Shenzhen SDG Swan Industrial Co. Ltd. Holding subsidiary of the parent company
Shenzhen Machinery Equipment Imp & Exp. Company Holding subsidiary of the parent company
Shenzhen SDG Real Estate Co. Ltd Holding subsidiary of the parent company
Hong Kong Yujia Investment Co Ltd. Holding subsidiary of the parent company
Shenzhen SDG Engineering Management Co. Ltd. Holding subsidiary of the parent company
Shenzhen Tellus Yangchun Real Estate Co. Ltd. Holding subsidiary of the parent company
Shenzhen Longgang Tellus Real Estate Co. Ltd. Holding subsidiary of the parent company
Shenzhen SDG Tellus Property Management Co. Ltd. Holding subsidiary of the parent company
Shenzhen SDG Service Co. Ltd. Jewelry Park Branch Holding subsidiary of the parent company
Starlight Jewelry Co. Ltd. Shareholders
Anhui Jinzun Jewelry Co. Ltd. Shareholders
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party
Related transaction
content
Current Period
Approved transaction
limit
Whether more than
the transaction limit
(Y/N)
Last Period
Shenzhen SDG
Engineering
Management Co.Ltd.
Accept labor 637620.00 504190.40
Shenzhen SDG
Tellus Property
Management Co.Ltd.
Accept labor 7001541.81 5816443.82
Shenzhen SDG
Service Co. Ltd.Jewelry Park
Branch
Accept labor 199490.25
Goods sold/labor service providing
In RMB
Related party Related transaction content Current Period Last Period
Shenzhen SD Petty Loan Co.Ltd.Providing services 93615.92 95167.03
(2) Related trusteeship management/contract & entrust management/ outsourcing
Not applicable
(3) Related lease
As a lessor for the Company:
In RMB
Lessee Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the Period
Shenzhen Zung Fu Tellus Auto
Service Co. Ltd.House lease 1694444.45 2523809.60
Shenzhen Xinyongtong Auto
Service Co. Ltd.House lease 231379.05 327782.86
Shenzhen Xinyongtong
Dongxiao Auto Service Co.
Ltd.House lease 169714.29 240428.57
Shenzhen SD Petty Loan Co.Ltd.House lease 620733.12 704631.90
Shenzhen SDG Tellus Property
Management Co. Ltd.House lease 25402.04 13288.57
Shenzhen SDG Service Co.Ltd. Jewelry Park Branch
House lease 897970.47
Subtotal 3639643.41 3809941.50
As lessee:
Nil
(4) Related guarantee
As guarantor
In RMB
Secured party Guarantee amount Guarantee start date Guarantee expiry date
Whether the guarantee
has been fulfilled
Shenzhen Zung Fu Tellus
Auto Service Co. Ltd.
3500000.00 2007-04-17 No
As secured party
Nil
Explanation on related guarantee
The Company entered into pledge contract with Zung Fu Auto Management (Shenzhen) Co. Ltd. (hereinafter
referred to as Zung Fu Shenzhen) pursuant to which during the period from establishment of our associate
company Shenzhen Zung Fu Tellus Auto Service Co. Ltd. (hereinafter referred to as Zung Fu Tellus) to the
expiration date of the joint venture contract between the Company and Zung Fu Shenzhen provided that Zung Fu
Shenzhen provides borrowings to Zung Fu Tellus under entrusted loan Zung Fu Tellus makes borrows from bank
or other financial institutions and guaranteed by Zung Fu Shenzhen and the total borrowings shall not exceed
RMB 100 million the Company bears 35% of the obligations arising from above borrowings according to its
shareholding proportion. It was agreed for the Company to pledge 35% equity interests held in Zung Fu Tellus to
Zung Fu Shenzhen as counter guarantee for the above borrowings.
Chengdu HezhiYuan Jewelry Co. Ltd. the related enterprise of Chengdu CaizhiYuan Jewelry Co. Ltd. which is a
shareholder of the Company’s subsidiary Sichuan Tellus Jewelry Technology Co. Ltd. and the related individual
Xiong Yungui Chengdu Ruihang Jewelry Co. Ltd. a shareholder of Sichuan Tellus Jewelry Technology Co. Ltd.and the related individual Linhang Chengdu Zhongjin Guifu Jewelry Co. Ltd. a shareholder of Sichuan Tellus
Jewelry Technology Co. Ltd. and the related individual Lin Tonggui Chengdu Hengyue Trading Co. Ltd. a
shareholder of Sichuan Tellus Jewelry Technology Co. Ltd. and related company Chengdu Zhongcheng Shubao
Jewelry Co. Ltd. set the maximum guarantee by taking Sichuan Tellus Jewelry Technology Co. Ltd. as the
creditor the main creditor's right of guarantee is the accounts receivable of Sichuan Tellus Jewelry Technology
Co. Ltd. to the warrantees Lin Qin etc. the total amount of guarantees is 41.4799 million Yuan.
(5) Related party’s borrowed funds
In RMB
Related party Borrowing amount Starting date Maturity date Note
Borrowing
Lending
Shenzhen Tellus Hang
Investment Co. Ltd.
256363.88 2020-01-01 2020-12-31
Payment of property
rights representative
salary
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
Item Current period Last period
Remuneration of directors supervisors and
senior executives
2926900 2323700
(8) Other related transaction
6. Receivable and payable of related party
(1) Receivable item
In RMB
Item Name Related party
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Accounts receivable
Shenzhen
Xinyongtong Auto
Service Co. Ltd.
927602.00 927602.00 927602.00 927602.00
Shenzhen
Xinyongtong
Dongxiao Auto
Service Co. Ltd.
680400.00 680400.00 680400.00 680400.00
Shenzhen SD Petty
Loan Co. Ltd.
221227.49 2835.84 283583.81 2835.84
Subtotal 1829229.49 1610837.84 1891585.81 1610837.84
Other receivable
Shenzhen Tellus
Automobile Service
Chain Co. Ltd.
1359297.00 1359297.00 1359297.00 1359297.00
Shenzhen Yongtong
Xinda Inspection
Equipment Co. Ltd.
531882.24 531882.24 531882.24 531882.24
Shenzhen Xiandao
New Material Co.Ltd.
660790.09 660790.09 660790.09 660790.09
Shenzhen Tellus
Xinyongtong Auto
Service Co. Ltd.
114776.33 114776.33 114776.33 114776.33
Shenzhen Tellus
Hang Investment
Co. Ltd.
55125.04 551.25
Shenzhen SDG
Service Co. Ltd.Jewelry Park Branch
879119.04
Subtotal 3545864.70 2666745.66 2721870.70 2667296.91
Long-term
receivables
Shenzhen Tellus
Automobile Service
Chain Co. Ltd.
2179203.68 2179203.68 2179203.68 2179203.68
Subtotal 2179203.68 2179203.68 2179203.68 2179203.68
(2) Payable item
In RMB
Item Name Related party Ending book balance Opening book balance
Accounts payable
Shenzhen SDG Real Estate Co.Ltd
6054855.46 6054855.46
Shenzhen Machinery
Equipment Import & Export
Corporation
45300.00 45300.00
Shenzhen Tellus Gman
Investment Co. Ltd
22360.00 200000.00
Shenzhen SDG Engineering
Management Co. Ltd.
42205.66
Shenzhen SDG Service Co.Ltd. Jewelry Park Branch
36103.11
Shenzhen SDG Tellus Property
Management Co. Ltd.
3372496.27
Subtotal 9495011.73 6378464.23
Other payable
Hong Kong Yujia Investment
Co Ltd.
2158064.96 2172091.54
Shenzhen SDG Swan Industrial
Co. Ltd.
20703.25 20703.25
Shenzhen Machinery
Equipment Imp & Exp.
Company
1554196.80 1554196.80
Shenzhen SDG Co. Ltd. 17448724.94 20378046.74
Shenzhen Longgang Tellus
Real Estate Co. Ltd.
1095742.50 1095742.50
Shenzhen Tellus Yangchun
Real Estate Co. Ltd.
476217.49 476217.49
Shenzhen Tellus Hang
Investment Co. Ltd.
16765.12
Shenzhen Yongtong Xinda
Inspection Equipment Co. Ltd.
29940.00 29940.00
Anhui Jinzun Jewelry Co. Ltd. 1330000.00 1330000.00
Shenzhen SDG Tellus Property
Management Co. Ltd.
192227.98 192227.98
Shenzhen Zung Fu Tellus Auto 833334.00 833334.00
Service Co. Ltd.Shenzhen SD Petty Loan Co.Ltd.
227836.80 227836.80
Shenzhen SDG Service Co.Ltd. Jewelry Park Branch
6598.00
Subtotal 25390351.84 28310337.10
7. Related party commitment
8. Other
IX. Commitment or contingency
1. Important commitments
Important commitments on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Contingent liability and its financial influence formed by pending litigation or arbitration
(1) In October 2005 a lawsuit was brought before Shenzhen Luo Hu District People’s Court by the Company
which was the recognizer of Jintian Industrial (Group) Co. Ltd. (“Jintian”) to require Jintian to redress RMB
4081830 (principal: RMB 3000000 interest: RMB 1051380 legal fare: RMB 25160 and executive fare:
RMB 5290). Shenzhen Intermediate People’s Court had adjudged that the Company won the lawsuit and the
forcible execution had been applied by the Company. As for the deducted amount in previous years the Company
has counted as debt losses.
In April 2006 Shenzhen Development Bank brought an accusation against Jintian’s overdue loan two million U.S.
dollars and the Company who guaranteed for this loan. The company took on the principal and all interest. After
that the Company appealed to Shenzhen Luohu District People's Court asking Jintian to repay 2960490 U.S.dollars and interest. In 2008 it reached Shen Luo No.937 Civil Reconciliation Agreement (2008) after the
mediating action taken by Shenzhen Luohu District People's Court. The agreement is as follows: If Jintian repay
2960490 U.S. dollars before October 31 2008 the company will exempt all the interest. If Jintian can not settle
the amount on time it will pay the penalty in accordance with the People's Bank of China RMB benchmark
lending rate over the same period.Jintian Company in process of debt service for bankruptcy reorganization. On January 29 2016 Shenzhen
Intermediate People's Court ruled that the reorganization plan of Jintian Company was completed and the
bankruptcy proceedings were terminated Jintian Company was re-allocating to the creditors including the
Company according to the reorganization plan. Cash of 325000 yuan 427604 A shares and 163886 B shares of
Jintian Company should be distributed to the Company. As of the date of approval of this financial report the
company has not received the distributed property.
After failed to communicate with Jintian Company about the cash and equity that should be allocated to our
company after Jintian Company’s bankruptcy and reorganization for more than once the Company filed a lawsuit
to the People's Court of the Qianhai Cooperation Zone requesting the court to order Jintian Company and its
shareholders to pay.On January 9 2020 the Qianhai Court held a public hearing on the case and made the first-instance judgment on
February 13 2020 judging that Jintian Company should pay 325000 yuan to Tellus Group within 5 days from
the effective date of the judgment and deliver 427604 shares of A shares and 163886 shares of B shares of
Jintian Group (if the shares cannot be delivered the payment can be made after converting into cash according to
the stock market price on the last day of the aforementioned performance period). Because some of the defendants
in this case cannot be served with the written judgment and the defendants whose whereabouts are unknown
include foreign-related parties the Qianhai Court has published a delivery announcement for the written judgment
on February 14 2020. As of June 30 2020 the first-instance judgment of the case has not yet taken effect.
(2) In May 2014 our subsidiary Shenzhen Automobile Industry Trading General Company (hereinafter referred to as Automobile
Industry Trading Company) was served with a summon from people’s court in Futian district Shenzhen pursuant to which
Shenzhen branch of China Huarong Asset Management Co. Ltd. (“Huarong Shenzhen”) sued Auto Industrial Trading Company for
joint settlement responsibility in respect of the debt disputes between Shenzhen Guangming Watch Co. Ltd. (“Guangming Watch”)
and its creditors. Including the payment of the debt principal of 350000.00 yuan and the debt interest during the delayed
performance period of 946697.54 yuan the Auto Industry and Trade Company calculated the expected litigation loss of
2225468.76 yuan based on the bank’s borrowing interest rate for the same period of the outstanding principal and corresponding
interest. Huarong Shenzhen Company applied to the Futian Court to withdraw the lawsuit on January 20 2018 Futian Court issued
(2014) SFFMECZ No. 4712-2 Civil Ruling Paper on January 30 2018 allowed to withdraw.
(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
X. Events after balance sheet date
Not applicable
XI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets exchange
Nil
4. Pension plan
Nil
5. Discontinuing operation
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
The Company determines operating (segment)divisions based on internal organizational structure management
requirements and internal reporting system and determines the reporting segment based on the industry segment.Respectively assess the operating performance of automobile sales automobile maintenance and testing leasing
and services and jewelry wholesale and retail. The assets and liabilities used with each segment are distributed
among the different segments in proportion to their size.
(2) Financial information for reportable segment
In RMB
Item Auto sales
Auto
maintenance and
inspection
Leasing and
services
Wholesale and
retail of jewelry
Offset between
segment
Total
Main business
income
112524897.49 19138132.58 58157419.79 16963304.20 -13727405.66 193056348.40
Main business 109843052.17 16287281.23 25058304.97 16010373.45 -13653691.37 153545320.45
cost
Total assets 67368569.39 22910066.56 2540076869.66 154256572.67
-1208556813.6
2
1576055264.66
Total liability 63176532.99 14176110.25 617141672.40 2069464.10 -464666340.89 231897438.85
(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
Nil
8. Other
XII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category
In RMB
Category
Ending balance Opening balance
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Account receivable
with bad debt
provision accrual on
a single basis
484803.
08
16.30%
484803.
08
100.00%
484803.0
8
69.90%
484803.0
8
100.00%
Including:
Account receivable
with bad debt
provision accrual on
portfolio
249004
6.10
83.70% 2087.99 0.08%
2487958
.11
208798.7
5
30.10% 2087.99 1.00% 206710.76
Including:
Total
297484
9.18
100.00%
486891.
07
16.37%
2487958
.11
693601.8
3
100.00%
486891.0
7
70.20% 206710.76
Bad debt provision accrual on single basis:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Bijiashan
Entertainment Company
172000.00 172000.00 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Gong Yanqing 97806.64 97806.64 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Guangzhou Lemin
Computer Center
86940.00 86940.00 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Other 128056.44 128056.44 100.00%
The accounts are more
than 10 years old and are
not expected to be
recovered
Total 484803.08 484803.08 -- --
Bad debt provision accrual on portfolio:
In RMB
Name
Ending balance
Book balance Bad debt provision Accrual ratio
Within one year 2490046.10 2087.99 0.08%
Total 2490046.10 2087.99 --
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other account receivables to disclose related information about bad-debt provisions:
√ Applicable □Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including one year) 2490046.10
Over 3 years 484803.08
Over 5 years 484803.08
Total 2974849.18
(2) Bad debt provision accrual collected or reversal in the period
Not applicable
(3) Account receivable actually written-off in the period
Not applicable
(4) Top 5 account receivables at ending balance by arrears party
In RMB
Enterprise
Ending balance of accounts
receivable
Proportion in total receivables
at ending balance
Bad debt preparation ending
balance
Shenzhen Zung Fu Tellus Auto
Service Co. Ltd.
1911906.35 64.27%
Shenzhen Bijiashan
Entertainment Company
172000.00 5.78% 172000.00
Shenzhen Jincheng Yinyu
Jewelry Co. Ltd.
103272.00 3.47% 1032.72
Gong Yanqing 97806.64 3.29% 97806.64
Guangzhou Lemin Computer
Center
86940.00 2.92% 86940.00
Total 2371924.99 79.73% 357779.36
(5) Account receivable derecognition due to financial assets transfer
Not applicable
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Not applicable
2. Other account receivable
In RMB
Item Ending balance Opening balance
Dividends receivable 547184.35 547184.35
Other account receivable 135492262.28 115490588.74
Total 136039446.63 116037773.09
(1) Interest receivable
Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested enterprise) Ending balance Opening balance
China Pudong Development Machinery
Industry Co. Ltd
547184.35 547184.35
Total 547184.35 547184.35
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□ Applicable √Not applicable
(3) Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Dividend receivable 547184.35 547184.35
Related transactions within the scope of
consolidation
135184758.23 115271769.06
Reserve fund 130000.00 43346.12
Interim payment receivable 14408900.22 14406869.73
Total 150270842.80 130269169.26
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total Expected credit
losses over next 12
Expected credit losses for
the entire duration (without
Expected credit losses for
the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2020 105742.91 14125653.26 14231396.17
Balance of Jan. 1 2020
in the period
—— —— —— ——
Balance on Jun. 30 2020 105742.91 14125653.26 14231396.17
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (including one year) 135388827.06
Over 3 years 14334831.39
Over 5 years 14334831.39
Total 149723658.45
3) Bad debt provision accrual collected or reversal in the period
Not applicable
4) Other account receivable actually written-off in the period
Not applicable
5) Top 5 other receivables at ending balance by arrears party
In RMB
Enterprise Nature Ending balance Account age
Ratio in total ending
balance of other
account receivables
Ending balance of
bad debt reserve
Shenzhen Zhongtian
Industrial Co. Ltd.Internal intercourse 134366644.53 Within one year 89.74%
Shenzhen Zhonghao
(Group) Co. Ltd
Intercourse funds 5000000.00 Over 3 years 3.34% 5000000.00
Gold Beili Electrical
Appliances Company
Intercourse funds 2706983.51 Over 3 years 1.81% 2706983.51
Shenzhen
Petrochemical Group
Intercourse funds 1923891.98 Over 3 years 1.28% 1923891.98
Shenzhen SDG Intercourse funds 1212373.79 Over 3 years 0.81% 1212373.79
Huatong Packaging
Industry Co. Ltd.Total -- 145209893.81 -- 96.98% 10843249.28
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
Other explanation:
Name Ending balance
Book balance Bad debt provision Provision
ratio
Reason for provision
Shenzhen Zhonghao (Group) Co.Ltd
5000000.00 5000000.00 100% The accounts are more
than 10 years old and
are not expected to be
recovered
Gold Beili Electrical Appliances
Company
2706983.51 2706983.51 100% The accounts are more
than 10 years old and
are not expected to be
recovered
Shenzhen Petrochemical Group
1923891.98 1923891.98 100% The accounts are more
than 10 years old and
are not expected to be
recovered
Shenzhen SDG Huatong Packaging
Industry Co. Ltd.
1212373.79 1212373.79 100% The accounts are more
than 10 years old and
are not expected to be
recovered
Other 3491582.11 3282403.98 94% The accounts are more
than 10 years old and
are not expected to be
recovered
Total 14334831.39 14125653.26 -- --
3. Long-term equity investment
In RMB
Item
Ending balance Opening balance
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Investment for
subsidiary
745996472.73 1956000.00 744040472.73 745996472.73 1956000.00 744040472.73
Investment for
associates and
joint venture
133817676.62 9787162.32 124030514.30 125101730.19 9787162.32 115314567.87
Total 879814149.35 11743162.32 868070987.03 871098202.92 11743162.32 859355040.60
(1) Investment for subsidiary
In RMB
The invested
entity
Opening
balance (book
value)
Increase and decrease in current period
Ending balance
(book value)
Ending balance
of impairment
provision
Additional
investment
Reduce
investment
Provision for
impairment
Other
Shenzhen SDG
Tellus Real
Estate Co. Ltd.
31152888.87 31152888.87
Shenzhen Tellus
Chuangying
Technology Co.Ltd.
14000000.00 14000000.00
Shenzhen Tellus
Xinyongtong
Automobile
Development
Co. Ltd.
57672885.22 57672885.22
Shenzhen
Zhongtian
Industrial Co.Ltd.
369680522.9
0
369680522.90
Shenzhen Auto
Industry and
Trade
Corporation
126251071.5
7
126251071.57
Shenzhen SDG 19224692.65 19224692.65
Huari Auto
Enterprise Co.
Ltd.Shenzhen Huari
TOYOTA
Automobile
Sales Service
Co. Ltd.
1807411.52 1807411.52
Shenzhen
Xinyongtong
Automobile
Inspection
Equipment Co.
Ltd.
10000000.00 10000000.00
Anhui Tellus
Starlight
Jewelry
Investment Co.Ltd.
4998000.00 4998000.00
Sichuan Tellus
Jewelry Tech.
Co. Ltd.
100000000.0
0
100000000.00
Shenzhen Tellus
Baoku Supply
Chain
Technology Co.Ltd.
9253000.00 9253000.00
Shenzhen
Hanligao
Technology
Ceramics Co.
Ltd.
0.00 1956000.00
Total
744040472.7
3
744040472.73 1956000.00
(2) Investment for associates and joint venture
In RMB
investmen
t
company
Opening
balance
(book
value)
Current changes (+ -) Ending
balance
(book
value)
Ending
balance
of
impairme
Additiona
l
Capital
reduction
Investme
nt gains
Other
comprehe
Other
equity
Cash
dividend
Accrual
of
Other
investmen
t
recognize
d under
equity
nsive
income
adjustmen
t
change or profit
announce
d to
issued
impairme
nt
provision
nt
provision
I. Joint venture
Shenzhen
Tellus
Gman
Investme
nt Co.
Ltd
7015538
3.50
4039637
.29
7419502
0.79
Shenzhen
Tellus
Hang
Investme
nt Co.
Ltd.
1184545
2.17
300297.7
6
1214574
9.93
Subtotal
8200083
5.67
4339935
.05
8634077
0.72
II. Associated enterprise
Shenzhen
Zung Fu
Tellus
Auto
Service
Co. Ltd.
3331373
2.20
4376011
.38
3768974
3.58
Hunan
Changyan
g
Industrial
Co. Ltd.
1810540
.70
Shenzhen
Jiecheng
Electronic
Co. Ltd.
3225000
.00
Shenzhen
Xiandao
New
Materials
Co. Ltd.
4751621
.62
Subtotal 3331373 4376011 3768974 9787162
2.20 .38 3.58 .32
Total
1153145
67.87
8715946
.43
1240305
14.30
9787162
.32
4. Operating income and operating cost
In RMB
Item
Current period Last period
Income Cost Income Cost
Main business 13120854.52 3857719.57 19112054.55 1774557.00
Total 13120854.52 3857719.57 19112054.55 1774557.00
Income related information
In RMB
Contract classification Division 1 Division 2 Total
Including: - -
Property leasing and
services
13120854.52
Including: - -
Shenzhen 13120854.52
Including: - -
Total 13120854.52
5. Investment income
In RMB
Item Current period Last period
Long-term equity investment income
measured by cost
8400304.32
Long-term equity investment income
measured by equity
8715946.43 8376471.67
Investment income of trading financial assets
during the holding period
2114272.43 3417993.78
Total 19230523.18 11794465.45
XIII. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Item Amount Note
Governmental grants calculated into current
gains and losses (while closely related with
the normal business of the Company
excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard)
52846.70
Except for the effective hedging business
related to the normal business of the
Company the fair value changes from
holding the tradable financial assets
derivative financial assets tradable
financial liability and derivative financial
liability; and investment income from
disposal of tradable financial assets
derivative financial assets tradable financial
liability and other creditors investment
4003521.31 Income from financial products
Switch back of the impairment provision
for account receivable with impairment test
on single basis and contract assets
599201.43 Switch back of bad debt provision
Other non-operating income and expense
other than the above mentioned ones
917047.44
Income from forfeiting the lease deposit
after the tenant returns the lease in advance
Less: Impact on income tax 858601.74
Impact on minority interests 521850.19
Total 4192164.95 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss explain reasons
□ Applicable √Not applicable
2. ROE and earnings per share
Profits during report period Weighted average ROE
Earnings per share
Basic EPS (Yuan/share)
Diluted EPS
(Yuan/share)
Net profits belong to common stock
stockholders of the Company
1.99% 0.0594 0.0594
Net profits belong to common stock
stockholders of the Company after
1.67% 0.0497 0.0497
deducting nonrecurring gains and
losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
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