Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.Shenzhen Tellus Holding Co. Ltd.2024 Annual Report
March 2025
1Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2024 Annual Report
Section I Important Notice Contents and Interpretations
The Board of Directors and Board of Supervisors as well as directors supervisors and
senior executives of the Company guarantee that the present annual report is true accurate
and complete without false records misleading statements or major omissions and
undertake the joint and several legal liabilities arising therefrom.Fu Chunlong head of the Company Huang Tianyang the person in charge of
accounting and Huang Tianyang the person in charge of the accounting firm (accountant in
charge) declare to guarantee the truthfulness accuracy and completeness of the financial
reports in this annual report.All directors have attended the meeting of the Board of Directors to review this report.The Company shall abide by the disclosure requirements of the Business Guidelines of
Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 3 —
Industrial Information Disclosure for jewelry-related business.The forward-looking statements such as plans for the future and development strategies
involved in this annual report do not constitute a substantial commitment of the Company to
investors. Investors and stakeholders shall be aware of the risks therein and understand the
differences among plans forecasts and commitments. Investors shall pay attention to
investment risks.The Company's profit distribution plan passed by the Board of Directors is as follows:
Based on a total of 431058320 shares a cash dividend of RMB 1 (including taxes) per 10
shares will be distributed to all shareholders with no bonus shares issued (including taxes)
and no capitalization of reserves for an increase in capital stock.
2Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Table of Contents
Section I Important Notice Contents and Interpreta....2
Section II Company Profile and Major Financial Ind... 6
Section III Management Discussion and Analysis ......10
Section IV Corporate Governance .................... 35
Section V Environmental and Social Responsibility .. 54
Section VI Important Matters ....................... 55
Section VII Changes in Shares and Shareholders ..... 68
Section VIII Preferred Shares ...................... 75
Section IX Bonds ................................... 76
Section X Financial Reports .........................77
3Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
List of Documents for Future Reference
(I) Financial statements signed and sealed by the head of the Company the person in charge of accounting and the person in
charge of the accounting firm (accountant in charge).(II) The original copy of the Auditor's Report sealed by the accounting firm and sealed and signed by certified public
accountants.(III) Originals of all company documents and announcements that have been publicly disclosed during the reporting period.
4Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Interpretations
Term Refers to Interpretation
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Shenzhen Branch of China Securities Depository and Clearing
CSDC Shenzhen Branch Refers to
Corporation Limited
Company the Company and Tellus
Refers to Shenzhen Tellus Holding Co. Ltd.Holding
Reporting period the reporting period and
Refers to 2024
the year
State-owned Assets Supervision and Management Commission
Shenzhen SASAC Refers to
of Shenzhen Municipal People's Government
SDG Group and controlling shareholder Refers to Shenzhen Special Economic Zone Development Group Co. Ltd.SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen Jewelry SJIS Refers to Shenzhen Jewelry Industry Service Co. Ltd.Guorun Guorun Gold Refers to Guorun Gold Shenzhen Co. Ltd.Tellus Treasury Refers to Shenzhen Tellus Treasury Supply Chain Tech Co. Ltd.Shanghai Fanyue Refers to Shanghai Fanyue Diamond Co. Ltd.Zhongtian Company Refers to Shenzhen Zhongtian Industry Co. Ltd.Automobile Industry and Trade Company Refers to Shenzhen Automobile Industry and Trade Co. Ltd.SDG Huari Refers to Shenzhen SDG Huari Automobile Enterprise Co. Ltd.Huari Company Refers to Shenzhen Huari Automobile Sales and Service Co. Ltd.Tellus Jewelry Building Jewelry Building Refers to Tellus Shuibei Jewelry Building
Tellus Gold and Diamond Building Gold
Refers to Tellus Gold and Diamond Trading Building
and Diamond Building
5Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section II Company Profile and Major Financial Indicators
I. Company Information
Stock abbreviation Tellus A Tellus B Stock code 000025 200025
Stock abbreviation before change (if any) N/A
Stock exchange on which the shares are listed Shenzhen Stock Exchange
Chinese name of the Company Shenzhen Tellus Holding Co. Ltd.Chinese abbreviation Tellus A
English name of the Company (if any) Shenzhen Tellus Holding Co. Ltd.English abbreviation (if any) N/A
Legal representative of the Company Fu Chunlong
Registered address 3F Tellus Building No. 56 2nd Shuibei Road Luohu District Shenzhen
Postal code of the registered address 518020
Historical changes of the Company's registered
None
address
3F and 4F Tellus Building No. 56 2nd Shuibei Road Luohu District
Office address
Shenzhen
Postal code of the office address 518020
Website of the Company www.tellus.cn
E-mail ir@tellus.cn
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Qi Peng Liu Menglei
3F Tellus Building No. 56 2nd Shuibei Road Luohu 3F Tellus Building No. 56 2nd Shuibei Road Luohu
Address
District Shenzhen District Shenzhen
Tel. (0755)83989390 (0755)88394183
Fax (0755)83989386 (0755)83989386
E-mail ir@tellus.cn liuml@tellus.cn
III. Information Disclosure and Place for Preparation
Website of the stock exchange for the Company to disclose the
Shenzhen Stock Exchange (www.szse.cn)
annual report
Names and websites of the media outlets for the Company to
Securities Times and CNINFO (www.cninfo.com.cn)
disclose the annual report
Location for keeping annual reports of the Company Secretariat Office of the Board of Directors of the Company
IV. Changes of Registration
Unified social credit code 91440300192192210U
Change of main business With the strategic transformation and upgrading of the Company and the dissolution of Huari
6Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
after listing (if any) Company starting from 2023 automobile sales testing maintenance and spare parts sales are no
longer the Company's main business.The main business of the Company during the reporting period included jewelry third-party services
commercial complex operations and property leasing business.
1. On March 31 1997 the Company held a total of 220.2816 million shares in capital stock and the
former Shenzhen Investment Management Co. Ltd. the sole non-tradable shareholder of the
Company transferred 159.588 million state shares held by it to SDG Group. The shares held by SDG
Group accounted for 72.45% of the total capital stock and these shares were state shares.
2. As the controlling shareholder of the Company SDG Group later underwent an equity division
reform the Company's non-public offering of A-shares and a reduction in holding some of the
Company's tradable shares without trading moratorium. By the end of the reporting period SDG
Group held a total of 211591621 shares of the Company accounting for 49.09% of the Company's
Previous changes of
total capital stock. Thus it remains the controlling shareholder of the Company.controlling shareholders
3. On December 28 2022 Shenzhen SASAC signed the Voting Rights Entrustment Agreement with
(if any)
its wholly-owned subsidiary SIHC. Through this agreement Shenzhen SASAC entrusted its 38.97%
voting rights in SDG Group to the wholly-owned subsidiary SIHC making SIHC the indirect
controlling shareholder of the Company. Thus the Company's controlling shareholder and actual
controller have not changed.
4. In 2024 Shenzhen SASAC transferred its 39.6875% equity in SDG Group to SIHC at no cost.
This equity transfer does not change the Company's controlling shareholder or actual controller. SDG
Group remains the Company's controlling shareholder SIHC is the Company's indirect controlling
shareholder and Shenzhen SASAC remains the Company's actual controller.V. Other Related Information
Accounting firm engaged by the Company
Name of accounting firm Grant Thornton Certified Public Accountants (Special General Partnership)
Office address of the accounting firm 5F of Scitech Place No. 22 Jianguomenwai Street Chaoyang District Beijing
Names of signing accountants Wu Liang Xiao Na
Sponsor institution engaged by the Company for continuous supervision during the reporting period
□ Applicable□ Not applicable
Financial consultant engaged by the Company for continuous supervision during the reporting period
□ Applicable□ Not applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data for the previous years
□Yes□ No
Change over the
202420232022
previous year
Operating revenue (RMB) 2613678204.37 1846738841.89 41.53% 837656274.51
Net profit attributable to shareholders of the
136629870.80118255140.8415.54%83496135.61
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring 126470887.40 90386717.21 39.92% 63268802.52
gains and losses (RMB)
Net cash flows from operating activities
390288813.85-60140006.46748.97%-51967764.29
(RMB)
Basic earnings per share (RMB/share) 0.3170 0.2743 15.57% 0.1937
7Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Diluted earnings per share (RMB/share) 0.3170 0.2743 15.57% 0.1937
Weighted average return on net assets 8.21% 7.59% 0.62% 5.69%
Change over the end
End of 2024 End of 2023 End of 2022
of the previous year
Total assets (RMB) 2594459237.89 2403851684.45 7.93% 2232028554.57
Net assets attributable to shareholders of the
1726884629.561603905054.937.67%1505638863.31
listed company (RMB)
The lower of the Company's net profit before and after deducting non-recurring gains and losses in the last three accounting years
is negative and the auditor’s report of the last year shows that there is uncertainty about the Company's going concern.□Yes□ No
The lower of net profit before and after deducting non-recurring gains and losses is negative.□Yes□ No
VII. Discrepancy of Accounting Data under the Accounting Standard both at Home and
Abroad
1. Discrepancy in net profit and net assets in the financial reports disclosed simultaneously according to
International Accounting Standards and Chinese Accounting Standards
□ Applicable□ Not applicable
There was no discrepancy in net profit and net assets between the financial reports disclosed by the Company following
International Accounting Standards and Chinese Accounting Standards in the reporting period.
2. Discrepancy in net profit and net assets in the financial reports disclosed simultaneously according to
foreign accounting standards and Chinese Accounting Standards
□ Applicable□ Not applicable
There was no discrepancy in net profit and net assets between the financial reports disclosed by the Company following foreign
accounting standards and Chinese Accounting Standards in the reporting period.VIII. Quarterly Major Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 758317502.50 821706246.35 487357584.91 546296870.61
Net profit attributable to shareholders of the listed
35247571.8241414907.8731421768.7228545622.39
company
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and 32505801.08 37948985.23 28950798.21 27065302.88
losses
Net cash flows from operating activities -23101927.41 130411416.33 -66021941.86 349001266.79
Is there any great discrepancy between the above indicators or their sum and relevant indicators disclosed in the quarterly or semi-
annual report
□Yes□ No
8Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
IX. Non-recurring Gain or Loss Items and Amounts
□Applicable □ Not applicable
Unit: RMB
Item Amount in 2024 Amount in 2023 Amount in 2022 Notes
Gains and losses on the disposal of non-current assets
(including the portion offset for assets impairment -227.20 69475478.10 8826176.39
provision made)
Government subsidies included in the current gains and
losses (excluding those that are closely related to the
Company's normal business operations in line with
6524396.476476027.996575043.88
national policies and regulations and granted in
accordance with defined criteria with a continuous
influence on the Company's gains and losses)
Gains or losses from changes in the fair value of financial
assets and financial liabilities held by the non-financial
company as well as gains or losses from the disposal of
-10293994.77-9882368.0610762831.81
the financial assets and financial liabilities except for
effective hedging related to normal operations of the
Company
Reserves of impairment provision for account receivables
6856854.34150000.00
individually tested for impairment
Other non-operating revenues and expenditures apart from
1704993.232089529.203718192.18
the aforesaid items
Other gains or losses conforming to the definition of non-
-36363757.7749829.40
recurring gains or losses
Less: Effect on income tax -9511450.05 13674541.65 6628391.02
Effect on minority shareholders' equity (after tax) 4144488.72 -9598055.82 3076349.55
Total 10158983.40 27868423.63 20227333.09 --
Specific conditions of other gains or losses conforming to the definition of non-recurring gains or losses:
□ Applicable□ Not applicable
The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses
? Applicable□ Not applicable
Due to the price fluctuation risk related to gold effective hedging of gold futures is a means
for Guorun Gold and Tellus Treasury subsidiaries of the Company to avoid relevant risks.This activity falls under normal proprietary business operations. Therefore based on the nature
and characteristics of its normal business operations the Company has classified the following
Effective -16490969.27 items listed in the Explanatory Announcement on Information Disclosure by Companieshedging Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) as
recurring profit and loss items: effective hedging related to the normal operations of non-
financial enterprises; gains and losses from changes in the fair value of financial assets and
financial liabilities held; and gains and losses from the disposal of financial assets and
financial liabilities.Refund of
handling According to the Explanatory Announcement on Information Disclosure by Companies
charges Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision)
for 73439.68 the refund of handling fees withheld for individual income tax received by the Company and
individual its subsidiaries is categorized as income related to routine activities. As it is neither of a special
income nature nor incidental it is classified as a recurring profit or loss item.tax
9Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section III Management Discussion and Analysis
I. Industry Development during the Reporting Period
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.(I) Gold and jewelry industry
1. Macro-environment
The development of the gold and jewelry industry is closely related to the global geopolitical
pattern and economic development trend. In 2024 escalating geopolitical tensions rising trade
protectionism and deepening economic decoupling disrupted global markets. The global economy
showed signs of weak momentum imbalanced growth and increased fragmentation during its slow
recovery leading to divergent economic development trajectories. Over the past year China's
economy remained stable but experienced a slight slowdown. In 2024 the retail sales of gold silver
and jewelry products by enterprises above the designated size reached RMB 330 billion a year-on-
year decrease of 3.1%. Despite current market challenges as inventory gradually clears marketing
strategies are adjusted and the jewelry market becomes more standardized the domestic jewelry
market is expected to demonstrate strong resilience in the future with significant growth potential
and structural development opportunities.
2. Overview of the gold and jewelry industry
Large market size: In 2023 the total market size of China's jewelry and jade industry reached
RMB 820 billion surpassing the RMB 800 billion threshold for the first time. The industry formed
a trillion-level industrial chain spanning upstream resources trade imports design and processing
and wholesale and retail.Low efficiency in upstream jewelry element circulation: The jewelry wholesale market is
fragmented with many small-scale traders operating inefficiently. Sourcing materials from overseas
remains costly transaction methods lack efficiency and informatization is limited. The industry
also lacks an influential trading platform for jewelry elements.Increasing industry competition: Leading enterprises are expanding channels upgrading
brands and developing new products to accelerate industry consolidation and win favor from new-
generation consumers. Structural differentiation within the gold and jewelry industry is intensifying
with mismatched supply and demand particularly in the low-end market where product
homogenization is severe. In the future industry concentration is expected to further increase.Divergent market performance across jewelry categories: Natural diamond-set jewelry as a
discretionary consumer product faces weak demand and slow recovery while lab-grown diamonds
10Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
have a great impact on the natural diamond market. Gold dominates the market due to its dual
attributes of consumption and value preservation but sustained high gold prices are suppressing
short-term demand leading to a severe price-volume trade-off in the market.Shifting consumer purchase scenarios: As marriage rates in China decline consumer demand
for jewelry used in wedding-related scenarios continues to weaken shrinking the market for
diamond-set jewelry. Conversely consumer demand for gold is rising. Driven by China's
consumption upgrades and the rise of self-indulgence spending trends consumer preferences are
shifting toward personalized and diverse gold jewelry designs and advancements in gold jewelry
craftsmanship are enabling faster product innovation cycles. As a result purchasing scenarios are
shifting from bridal consumption to self-use and gifting.
3. Development trends
The gold and jewelry industry presents vast growth opportunities in the future particularly in
the development of new gold product categories which are making gold more affordable and
expanding market penetration into lower-tier cities. This shift is broadening the consumer base and
increasing purchase frequency. In response brands are accelerating their expansion into online
channels which have become a key driver for sales growth in gold jewelry and other categories.Digitalization is further promoted and applied. With the ongoing digitalization and
technological advancements online gold and jewelry platforms are set to continue optimizing and
enhancing consumer interaction and experience. These improvements will boost enterprises'
operational efficiency reduce costs and enable more effective supply chain management. For
example using transparent and traceable data can allow for data analysis that promotes
management optimization and support demand forecasting.The domestic gold and jewelry transaction chain is becoming more standardized. The
government and relevant agencies are strengthening their regulation of the gold and jewelry
industry by formulating and improving industry laws and regulations clarifying industry standards
and norms and cracking down on illegal activities and violations. These efforts contribute to
maintaining market order and protecting consumer rights.Based on industry development by relying on its own advantages and making full use of
industry resources the Company has built a digital jewelry element trading platform that promotes
the standardization informatization and compliance of the jewelry industry builds differentiated
competitive advantages while serving the jewelry industry and helps to drive the high-quality
development of the Company.(II) Commercial real estate leasing industry
11Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
In 2024 China's commercial real estate industry continued its inventory reduction trend on the
sales side with new supply shrinking. On the operations side shopping mall properties in some
first-tier cities showed signs of stabilization and improvement while office properties' occupancy
rates and rental prices continued to decline. In the fourth quarter the real estate market saw signs of
recovery in core cities but the overall market remained in a phase of adjustment and transformation.The Company is actively adjusting market strategies adopting more flexible and diverse
leasing terms upgrading property facilities and services and increasing marketing efforts to attract
more enterprise tenants.II. Main Business during the Reporting Period
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.(I) The main business of the Company during the reporting period included jewelry third-party
services commercial complex operations and property leasing business.
1. Jewelry third-party services: Bearing the development mission of "being committed to
providing high-quality services and growing with the jewelry industry" in mind the Company relies
on its advantages gathers domestic and foreign high-quality industry resources and cooperates
with outstanding leading enterprises in the industry to build a third-party service platform that
meets diverse industry needs. By constructing and operating a digital jewelry element trading
platform the Company provides systematic solutions for precious metal wealth investment cultural
heritage and fashion styling. It also explores third-party depository business for high-end jewelry
creating a wide range of service products through cooperation to meet customer value propositions
enhance the industrial service chain set industry benchmarks and promote industry compliance.
2. Commercial complex operation and property leasing business: The Company is the largest
owner of Tellus-Gmond Gold Jewelry Industrial Park in the Shuibei area. The Tellus Jewelry
Building and Tellus Gold and Diamond Trading Building invested by the Company have been put
into operation successively maintaining a high occupancy rate. In addition the Company holds a
significant amount of property resources in areas such as Luohu and Futian in Shenzhen. While
maintaining the stability of its existing leasing business the Company actively promotes the
improvement of property quality. It will promote the transition of its old properties from traditional
simple leasing to commercial property operation with a focus on enhancing and exploring the
added value of its property brands. This initiative aims to establish innovative industrial projects
that align with the overall strategic layout of the city the district and the Company.(II) Description of the main business models of the jewelry business
1. Sales model
12Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company adopts both wholesale and retail as the main sales models for gold and jewelry.Additionally it provides supporting services such as customs clearance agency services gold
refining/exchange services and safe deposit box leasing. The sales revenue composition of the
jewelry business in 2024 is as follows:
Sales model Amount of operating revenue (RMB 10000) Amount of operating cost (RMB 10000) Gross margin in 2024
Wholesale 123554.38 121616.36 1.57%
Retail sales 105803.88 105018.25 0.74%
Other services 2735.37 891.62 67.40%
Total 232093.63 227526.23 1.97%
2. Production model
At present the Company's gold and related products mainly use a commissioned processing
model while diamonds colored gemstones and other products do not involve processing. The
structure of the production model is as follows:
Production model Amount (RMB 10000) Proportion
Finished products through the commissioned processing 205585.98 100.00%
3. Purchase model
Gold and related products: The Company purchases gold raw materials from Shanghai Gold
Exchange or other qualified organizations or leases them from banks.Diamonds: The Company purchases finished diamonds from overseas diamond suppliers and
imports them through Shanghai Diamond Exchange.Other jewelry and jade: The Company purchases such products from overseas jewelry and jade
suppliers and handles tax-paying import procedures through Shenzhen Jewelry.The structure of the production model is as follows:
Purchase quantity Purchase amount
Purchase model Raw materials
(kg) (RMB 10000)
Spot trading Gold 4491.62 223.852.64
4. Operation of physical stores during the reporting period
Operating Operating
S/N Description revenue (RMB cost Address
10000) (RMB 10000)
1 Guorun Direct-sales Store 7461.13 7438.23 Atrium of Tellus Jewelry Building 2nd Shuibei(Tellus) Road Luohu District Shenzhen City
Counter of Guorun Direct- B1-046 Basement Level 1 Annex Building of
2 sales Store (Tellus) on 5576.45 5554.33 Tellus Jewelry Building 2nd Shuibei Road Luohu
Basement Level 1 District Shenzhen City
Side Hall of Guorun Direct- B1-023 Basement Level 1 Annex Building of
3 sales Store (Tellus) on 33.75 33.35 Tellus Jewelry Building 2nd Shuibei Road Luohu
Basement Level 1 District Shenzhen City
4 Guorun (Tellus)—GOLD 603.43 602.55 B1-046 Basement Level 1 Annex Building of
13Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
DIAMOND Business Tellus Jewelry Building 2nd Shuibei Road Luohu
Cooperative Store District
5. Online sales during the reporting period
S/N Description Operating revenue Operating cost(RMB 10000) (RMB 10000)
1 Tellus Shuibei Jewelry Flagship Store on Tmall 6481.76 6335.59
2 Tellus Shuibei Jewelry Flagship Store on JD.com 17096.15 16801.19
3 "Self-operated mini-program private-sphere store" on WeChat 136.45 134.7
4 Tellus Shuibei Jewelry Auction Store on Alibaba 55159.13 54909.25
5 Tellus Shuibei Jewelry Official Flagship Store on Pinduoduo 1245.61 1236.00
6 Tellus Shuibei Jewelry Official Flagship Store on the Jingya platform 12010.02 11973.06
6. Inventory of jewelry business during the reporting period
As of December 31 2024 the inventory balance of the Company's jewelry business was RMB
127.4322 million of which RMB 114.8569 million was measured at fair value. This amount
represents hedged items using commodity futures contracts and T+D contracts as hedging
instruments.III. Core Competitiveness Analysis
(I) Location advantage
The Company located in Shuibei the core cluster area of Shenzhen's jewelry industry is the
largest owner of Tellus-Gmond Gold Jewelry Industrial Park. Shuibei accounts for more than 75%
of China's gold and jewelry market share. Within the one-square-kilometer core area of the Shuibei
market tens of thousands of gold and jewelry enterprises are concentrated. According to the data
from the Shenzhen Gold & Jewelry Association the annual physical pick-up volume of gold and
platinum in Shenzhen accounts for about 70% of the physical sales volume at Shanghai Diamond
Exchange and the physical consumption of diamonds accounts for about 80% of the import value
at Shanghai Diamond Exchange. In terms of brand clustering Luohu District encompasses over 40
leading jewelry enterprises and 29 "China Famous Trademarks" in the jewelry sector contributing
30% of the national total. It has successfully nurtured the stock exchange listings of jewelry
companies such as Chow Tai Seng and DR Group. Shuibei has formed a complete industrial chain
covering design and R&D production and manufacturing exhibition and trading brand operation
headquarters office operation inspection and testing and talent training.The location advantage of the Shuibei area is significant. The concentration of numerous
jewelry suppliers and established businesses facilitates the Company's import-export operations and
exhibition and marketing activities. The market influence and centralized trade information in
Shuibei provide a favorable business environment and development platform enabling the
Company to promptly capture market feedback and respond quickly to market changes. Shenzhen's
"20+8" Industrial Cluster Development Plan emphasizes the future focus on developing modern
14Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
fashion industrial clusters. The government's strong support for the jewelry industry provides
substantial backing for the Company helping to reduce operating costs enhance profitability and
achieve sustainable development.(II) Resource advantage
By leveraging its state-owned enterprise background and harnessing industrial synergies the
Company deeply integrates resources from both the supply and demand sides of the jewelry
industry. This endows the Company with a certain advantage in coordinating upstream resources.The Company has established direct partnerships with domestic and international gold and jewelry
suppliers and processors engaging in collaborative discussions with organizations such as the
Turkish Jewellery Exporters' Association the Republic of Sakha (Yakutia) delegation from Russia
and Myanmar Gems and Pearl Enterprise to develop domestic and international exhibition and
trading business.Through years of dedicated efforts the Company has accumulated significant industry
resources and influence. It maintains close collaborations with authoritative institutions in the
industry such as the National Testing Center for Gold and Silver Jewelry (Tianjin) and HJTC to
actively participate in and organize various industry activities set industry standards and
continuously expand its industry reputation and impact. The Company has deeply embedded itself
in the supply chain business to offer professional full-industry supply chain services and cooperated
with renowned jewelry enterprises in the industry to further expand its business scale.The Company's commercial complex operation and property leasing business provides stable
revenue and cash flows laying a solid foundation for its long-term development. The Company's
Tellus Jewelry Building and Tellus Gold and Diamond Trading Building have been put into
operation successively and maintained high occupancy rates. Furthermore the Company plans to
continuously unlock the commercial value of its traditional properties through quality upgrades and
old property renewal initiatives.(III) Management advantage
In terms of digitalization the Company has achieved significant technological advancements. It
has vigorously promoted the digital transformation of its trading platform organized and prioritized
functional modules and continuously adjusted its construction strategy to respond promptly to
changes and meet business needs. The Company has improved and enhanced the platform's
capabilities in online transactions data analysis and intelligent supervision gradually applying
these features in its supply chain operations to effectively serve jewelry industry clients and support
the growth of macro small and medium-sized enterprises (MSMEs) within the sector.
15Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
In terms of risk control the Company has formulated strict internal business control processes
such as supplier access standards a customer evaluation system and a procurement price
comparison system to realize multi-level risk control over capital information and logistics. At the
same time it has continuously optimized business processes and internal control systems during
business operations and carried out research and innovation on new categories and new business
models under the premise of controllable risks. By leveraging information system development and
system data analysis the Company has enhanced its business risk early warning capabilities.In internal management the Company views scientific management as both a driving force and
a safeguard for its development. From the perspective of management-driven operations the
Company adopts a business-oriented approach tailored to its actual conditions. It has introduced the
Business Leadership Model to refine its 4S control system solidifying the strategic closed-loop
management and ensuring the smooth execution of plans. The Company has actively promoted the
use of OKR management tools to effectively improve the management awareness and skills of its
personnel. Through continuous organizational structure optimization the Company has enhanced
its functional support capabilities.IV. Analysis of Main Business
1. Overview
In 2024 under the effective leadership of its Party Committee and Board of Directors the
Company maintained stable overall operations and consistently delivered positive performance.For the year 2024 the Company reported operating revenue of RMB 2613.68 million a year-
on-year increase of 41.53%. The primary reasons for the revenue growth include the expansion of
the gold and jewelry business and increased income from the commercial operations segment. In
2024 the Company achieved a total profit of RMB 163.29 million and a net profit attributable to
the parent company of RMB 136.63 million an increase of RMB 18.37 million compared to 2023.The profit growth was mainly driven by higher profits from the commercial operations segment and
increased income from investment in joint-stock enterprises. As of December 31 2024 the
Company's total assets amounted to RMB 2594.46 million.Adjusting its business strategy of optimizing the trading platform to enhance core
competitiveness: Focusing on the strategy of "One Platform Two Businesses" the Company has
built a digital jewelry element trading platform that integrates online exhibition and offline selection.It has vigorously advanced the digitalization of the platform and technological innovation with the
platform earning a spot on the 2024 China Top 100 Industrial Digitalization List. It has accelerated
the development of the domestic jewelry element trading business starting with recycled diamond
16Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
trading as an entry point. The Company hosted five Recycled Diamond Tenders and one lab-grown
diamond procurement event and piloted pop-up stores to gradually expand trading categories to
include colored gemstones pearls and jadeite. Simultaneously the Company is promoting the
integration of resources in the cross-border trading segment establishing smooth channels for
jewelry element circulation and driving the elevation of its brand value.Promoting the market expansion and digitalization of the gold segment concurrently: The
Company has clarified its product development plans strengthened new product R&D and
enhanced supply chain integration and service capabilities. It has established a dual-channel layout
of offline experience stores and online official flagship stores with a focus on expanding the
investment gold product sales business. In parallel the Company has deepened digital business
operations to deliver better services and greater value to customers.Improving operational efficiency in the physical platform segment: The Company has
improved the quality and efficiency of its investment attraction and operations. In 2024 nine
themed events including the Cultural Industry Expo and the first "Future Festival" were held at the
Tellus Jewelry Building and Tellus Gold and Diamond Trading Building effectively boosting foot
traffic in the business district and enhancing brand synergy. The traditional property segment
advanced the iteration and upgrade of business formats for multiple projects maintaining a healthy
overall occupancy rate throughout 2024.Improving the quality and efficiency of internal management: The Company has introduced
the Business Leadership Model and improved a 4S management system driven by strategies. It has
deepened the use and improvement of the OKR management system to enhance work efficiency
and planning. The Company has also strengthened the management of its joint-stock and holding
enterprises to safeguard its interests intensified talent team building and talent training efforts and
comprehensively advanced compliance management by building "three lines of defense" to ensure
healthy corporate development.Adhering to the leadership of Party building: Through measures such as information sessions
and the "Three Meetings and One Lecture" system the Company has implemented the spirit of the
Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC).Special training sessions on Party discipline education have been organized using real-life cases to
provide Party members and cadres with firsthand exposure to the severe consequences of violations
of laws and discipline. Additionally it has strengthened the construction of grassroots Party
organizations and actively explored innovative approaches to Party building.
17Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. Revenues and costs
(1) Operating revenue composition
Unit: RMB
2024 2023 Year-on-
Proportion in year
Proportion in
Amount operating Amount increase/dec
operating revenue
revenue rease
Total operating
2613678204.37100%1846738841.89100%41.53%
revenue
By industry
Jewelry sales and
2320842052.7888.80%1542107225.9683.50%50.50%
services
Leasing and
292836151.5911.20%250517470.4813.57%16.89%
services
Automobile sales 0.00% 42638840.47 2.31% -100.00%
Automobile
maintenance and 0.00% 11475304.98 0.62% -100.00%
testing
By product
Jewelry sales and
2320842052.7888.80%1542107225.9683.50%50.50%
services
Leasing and
292836151.5911.20%250517470.4813.57%16.89%
services
Automobile sales 0.00% 42638840.47 2.31% -100.00%
Automobile
maintenance and 0.00% 11475304.98 0.62% -100.00%
testing
By region
South China 1971504250.32 75.43% 1417912052.46 76.78% 39.04%
East China 241495799.74 9.24% 335179719.17 18.15% -27.95%
North China 260881606.21 9.98% 85710840.18 4.64% 204.37%
Central China 121099408.56 4.63% 6925197.35 0.37% 1648.68%
Other regions 18697139.54 0.72% 1011032.73 0.05% 1749.31%
By sales model
Direct sales 2613678204.37 100.00% 1846738841.89 100.00% 41.53%
(2) Industries products regions and sales models with an operating revenue or operating profit accounting for more than
10% of the Company's total
□Applicable □ Not applicable
Unit: RMB
Year-on-year
Year-on-year Year-on-year
Gross movement in
Operating revenue Operating cost movement in movement in
margin operating
operating costs gross margin
revenue
By industry
Jewelry sales and
2320842052.782273354439.852.05%50.50%50.07%0.28%
services
Leasing and
292836151.59103409860.2164.69%16.89%21.26%-1.27%
services
18Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
By product
Jewelry sales and
2320842052.782273354439.852.05%50.50%50.07%0.28%
services
Leasing and
292836151.59103409860.2164.69%16.89%21.26%-1.27%
services
By region
South China 1971504250.32 1743354212.66 11.57% 39.04% 42.03% -1.86%
East China 241495799.74 238075580.05 1.42% -27.95% -27.58% -0.50%
North China 260881606.21 257355619.98 1.35% 204.37% 205.24% -0.28%
Central China 121099408.56 119547197.35 1.28% 1648.68% 1653.55% -0.27%
Other regions 18697139.54 18431690.02 1.42% 1749.31% 1751.87% -0.14%
By sales model
Direct sales 2613678204.37 2376764300.06 9.06% 41.53% 44.19% -1.68%
In case of adjustments to the statistical criteria of the Company's main business data in the reporting period the Company has
provided the adjusted main business data for the most recent year based on the criteria at the end of the reporting period.□ Applicable□ Not applicable
(3) Whether the Company's physical product sales revenue is greater than the service revenue
□Yes □ No
Industry Item Unit 2024 2023 Year-on-year increase/decrease
Sales volume KG 4597.35 3563.59 29.01%
Wholesale and retail of gold Production KG 4137.93 3781.54 9.42%
Inventory KG 231.14 434.98 -46.86%
Explanation of the causes of over 30% changes in the related data
□Applicable □ Not applicable
During the reporting period the demand for the gold business decreased at the end of the year and the stockpile
volume has been reduced accordingly..
(4) Performance for major sales contracts and major procurement contracts signed by the Company as of the reporting
period
□ Applicable□ Not applicable
(5) Composition of operating cost
Industry and product classification
Unit: RMB
20242023
Year-on-
Proportio Proportio year
Industry Item n in n in
Amount Amount increase/d
operating operating ecrease
costs costs
Jewelry sales and Retail and wholesale of
2273354439.8595.65%1514822240.1591.90%50.07%
services jewelry
Leasing and Leasing property
103409860.214.35%85282344.365.17%21.26%
services management and others
Spare parts and
Automobile sales 0.00% 38385230.69 2.33% -100.00%
maintenance
19Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Automobile
maintenance and Automobiles 0.00% 9847384.40 0.60% -100.00%
testing
Unit: RMB
20242023
Year-on-
Product Proportion Proportio year
Item
classification in n inAmount Amount increase/d
operating operating ecrease
costs costs
Jewelry sales and Retail and wholesale of
2273354439.8595.65%1514822240.1591.90%50.07%
services jewelry
Leasing and Leasing property
103409860.214.35%85282344.365.17%21.26%
services management and others
Spare parts and
Automobile sales 0.00% 38385230.69 2.33% -100.00%
maintenance
Automobile
maintenance and Automobiles 0.00% 9847384.40 0.60% -100.00%
testing
(6) Whether the consolidation scope changed during the reporting period
□Yes □ No
On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate
the liquidation and resume operations. The Company submitted an application to the Shenzhen
Qianhai Cooperation Zone People's Court for withdrawal of the compulsory liquidation application
for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023] Y0391QQ
No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the
withdrawal of the compulsory liquidation application for SDG Huari. Consequently the Company
included SDG Huari in its consolidated financial statements as of December 27 2024.
(7) Major changes or adjustments in the Company's business products or services during the reporting period
□ Applicable□ Not applicable
(8) Key customers and key suppliers
Key customers of the Company
Total sales revenue from the top 5 customers (RMB) 570460360.10
Proportion of the total sales revenue from the top 5 customers
21.82%
in total annual sales revenue
Proportion of the sales revenue from the related parties among
3.21%
the top 5 customers in total annual sales revenue
Information on the top 5 customers of the Company
Proportion in total annual
S/N Customer name Sales revenue (RMB)
sales revenue
1 Customer 1 163676046.05 6.26%
20Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2 Customer 2 131590778.75 5.03%
3 Customer 3 114703552.51 4.39%
4 Customer 4 83815902.66 3.21%
5 Customer 5 76674080.13 2.93%
Total -- 570460360.10 21.82%
Explanation on other conditions of key customers
□ Applicable□ Not applicable
Main suppliers of the Company
Total purchase amount attributable to the top 5 suppliers
2270758126.66
(RMB)
Proportion of the total purchase amount attributable to the top 5
92.56%
suppliers in the total annual purchase amount
Proportion of the purchase amount attributable to related
parties among the top 5 suppliers in the total annual purchase 0.83%
amount
Information on the top 5 suppliers of the Company
Proportion in the total annual
S/N Supplier name Purchase amount (RMB)
purchase amount
1 Supplier 1 2164944175.15 88.25%
2 Supplier 2 70047130.00 2.86%
3 Supplier 3 20270819.23 0.83%
4 Supplier 4 8858465.84 0.36%
5 Supplier 5 6637536.44 0.27%
Total -- 2270758126.66 92.56%
Explanation on other conditions of key suppliers
□Applicable □ Not applicable
During the reporting period the supplier accounting for more than 50% of the Company’s total annual purchase amount was the
Shanghai Gold Exchange.
3. Expenses
Unit: RMB
Year-on-year Explanation on major
20242023
increase/decrease changes
Selling expenses 22232680.89 19128514.75 16.23%
Mainly due to
compensation incurred
Administrative from the closure of the
51362592.4585621795.09-40.01%
expenses automotive business in
the same period last
year
Financial expenses 6389014.69 5537879.92 15.37%
Mainly due to the
R&D expenses 3268819.88 1965795.78 66.28% increased number of
R&D projects
21Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
4. Investment in R&D
□Applicable □ Not applicable
Expected impact on the
Name of major
Project purpose Project progress Objectives to be achieved future development of the
R&D project
Company
The project's Enhance market
Integrated Promote online publicity and
development has competitiveness optimize
Enterprise Develop an integrated brand display while
been completed customer relationship
Information enterprise information providing functions such as
and it is now in management and improve
Display Platform display platform online consultation and
continuous enterprise operational
R&D feedback
operation efficiency
Improve the efficiency of
The project's
Jewelry Bonded Develop a new warehouse management
development has Improve the efficiency and
Warehouse jewelry bonded enhance the safety and
been completed accuracy of jewelry goods
Management warehouse traceability of goods and
and it is now in management
System R&D management system optimize supply chain
trial operation
management
The project's
R&D of a Dynamic Establish a development has Help users better understand Strengthen the Company's
Update Platform comprehensive and been completed the supply of goods in the core competitiveness and
for Diamond Price accurate diamond and it is currently diamond market and trends in expand its business scope
Index Information index system in the testing price changes and customer base
phase
R&D of an
Develop an integrated
Integrated Meet the personalized
import and export The project's Improve work efficiency
Management management needs of the
management system development has and strengthen supply
System for the jewelry industry for the
program for the been completed chain management
Jewelry Import and import and export business
jewelry industry
Export Business
Enable standardized Improve the efficiency and
Intelligent Develop a simple and
warehouse data management accuracy of warehouse
Integrated Jewelry easy-to-use intelligent The project's
and one-stop management management and lay a
Warehouse integrated warehouse development has
across the entire business good management
Management management program been completed
chain to ensure the accuracy foundation for business
System for jewelry
and real-time supply of data growth
Integrated
Improve the efficiency of
Intelligent Develop an efficient Increase usability
The project's inventory management
Inventory and convenient app accuracy and operational
development has reduce labor costs and
Management and for warehouse mobile efficiency in goods in/out
been completed improve customer service
Automated In/out devices and transfers
quality
App for Jewelry
Improve exhibition
The project's
management efficiency
Mobile Bidding development has Improve the Company's
Develop an efficient optimize the experience of
Platform for been completed business competitiveness
and convenient H5 exhibitor customers and
Jewelry Viewing and it is now in and improve customer
application realize real-time information
Events continuous satisfaction and loyalty
exchange data analysis and
operation
decision-making
Shenzhen The project's
Optimize the online viewing Improve customer
International development has
Develop an efficient exhibition functionality to satisfaction and stickiness
Jewelry and Jade been completed
and convenient mini enhance user convenience and enhance the
Comprehensive and it is now in
program and improve data analysis Company's service
Trade Platform continuous
and decision-making support. competitiveness
Mini Program operation
Data-driven Develop a data-driven The project's Strengthen the management Improve supply chain
22Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Jewelry Supply logistics tracking development has of the jewelry supply chain efficiency reduce logistics
Chain Optimization optimization system been completed business to achieve efficient costs improve inventory
System for the jewelry supply and it is now in collaboration between its management efficiency
chain trial operation upstream and downstream and enhance risk
participants management capabilities
Realize online ordering order
Simplify operations for
Raw Material Sales Digitize the gold raw It is in normal confirmation customer
both customers and staff
Mini Program material sales process operation maintenance payment
and boost business volume
tracking and other functions
R&D personnel of the Company
2024 2023 Change proportion
Number of R&D personnel
11683.33%
(person)
Proportion of R&D personnel
6.88%3.97%2.91%
in all employees
Educational background structure of R&D personnel
Bachelor's degree 8 3 166.67%
Master's degree 2 1 100.00%
Junior college diploma 1 2 -50.00%
Age composition of R&D personnel
Under 30 3 1 200.00%
30-408560.00%
R&D investment of the Company
2024 2023 Change proportion
R&D investment amount
3268819.881965795.7866.28%
(RMB)
Proportion of investment in
0.13%0.11%0.02%
R&D in operating revenue
Capitalized R&D investment
0.000.00
amount (RMB)
Proportion of capitalized
R&D investment in R&D 0.00% 0.00%
investment
Causes and impact of major changes in the composition of the Company's R&D personnel
□ Applicable□ Not applicable
Causes for significant year-on-year changes in the proportion of the total R&D investment in operating revenue
□ Applicable□ Not applicable
Explanation of the reason for significant changes in the capitalization rate of R&D investment and its justification
□ Applicable□ Not applicable
5. Cash flow
Unit: RMB
Year-on-year
Item 2024 2023
increase/decrease
Subtotal of cash inflows from
4662567599.792019506191.37130.88%
operating activities
23Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Subtotal of cash outflows from
4272278785.942079646197.83105.43%
operating activities
Net cash flows from operating
390288813.85-60140006.46748.97%
activities
Subtotal of cash inflows from
841818290.07677411633.1524.27%
investing activities
Subtotal of cash outflows from
1034454292.10810619126.8427.61%
investing activities
Net cash flows from investing
-192636002.03-133207493.69-44.61%
activities
Subtotal of cash inflows from
415000000.00359922892.8315.30%
financing activities
Sub-total of cash outflows from
471600230.88397758935.4418.56%
financing activities
Net cash flows from financing
-56600230.88-37836042.61-49.59%
activities
Net increase in cash and cash
141052580.94-231183441.67161.01%
equivalents
Explanation of main influence factors for year-on-year major changes in related data
□Applicable □ Not applicable
Unit: RMB
Item 2024 2023 Year-on-yearincrease/decrease Notes
Subtotal of cash inflows from
operating activities 4662567599.79 2019506191.37 130.88%
Increases in the business volume of gold
and jewelry during the reporting period
Subtotal of cash outflows from
operating activities 4272278785.94 2079646197.83 105.43%
Increases in the business volume of gold
and jewelry during the reporting period
Net cash flows from operating Decrease in accounts receivable and
activities 390288813.85 -60140006.46 748.97%inventory this year; introduction of notespayable business
Subtotal of cash inflows from
investing activities 841818290.07 677411633.15 24.27%
Subtotal of cash outflows from
investing activities 1034454292.10 810619126.84 27.61%
Net cash flows from investing -192636002.03 -133207493.69 -44.61%Year-on-year increase in the purchase ofactivities financial products
Subtotal of cash inflows from
financing activities 415000000.00 359922892.83 15.30%
Sub-total of cash outflows from
financing activities 471600230.88 397758935.44 18.56%
Repayment of borrowings related to the
Net cash flows from financing -56600230.88 -37836042.61 -49.59%gold and jewelry business during theactivities reporting period; decrease in borrowing
balances
Net increase in cash and cash Decrease in accounts receivable and
equivalents 141052580.94 -231183441.67 161.01%inventory this year; introduction of notespayable business
Explanation on the causes of the major differences between the net cash flow from operating activities during the reporting period
and the net profits of the Company in the year
□ Applicable□ Not applicable
V. Analysis of Non-main Business
□Applicable □ Not applicable
24Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB
Proportion in Sustainab
Amount Explanation
total profit le or not
Gains from financial investments gains from
Income from
19470482.47 11.92% using the equity method to recognize investments No
investment
inassociate companies
Changes in the fair value of unexpired wealth
Gains or losses from management products and losses from changes in
-10567743.62 -6.47% No
changes in fair value fair value at the end of the year due to re-
acquisition of control in a subsidiary
Asset impairment 0.00 0.00%
Non-operating Confiscation of security deposits due to early
3900953.07 2.39% No
revenue surrender of lease by merchants
Non-operating Liquidated damages to tenants for early
2195959.84 1.34% No
expenses termination due to renovation and upgrade works
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: RMB
End of 2024 Beginning of 2024 Proportion Explanatio
Proportion in Proportion in increase/de n on major
Amount Amount
total assets total assets crease changes
Cash at bank
377971359.6914.57%220340961.649.17%5.40%
and on hand
Accounts
46564067.141.79%99635751.524.14%-2.35%
receivable
Inventory 127432191.55 4.91% 178425833.88 7.42% -2.51%
Investment
1099772133.1042.39%1008137341.8041.94%0.45%
properties
Long-term
equity 85091833.20 3.28% 76511487.57 3.18% 0.10%
investments
Fixed assets 70763683.25 2.73% 78935843.49 3.28% -0.55%
Construction in
3332141.190.13%7279570.050.30%-0.17%
progress
Right-of-use
78558005.503.03%71904716.502.99%0.04%
assets
Short-term
120101444.434.63%145131694.446.04%-1.41%
borrowings
Contract
4009504.590.15%7079975.380.29%-0.14%
liabilities
Lease liabilities 76541985.55 2.95% 69524214.23 2.89% 0.06%
High proportion of overseas assets
□ Applicable□ Not applicable
25Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. Assets and liabilities at fair value
□Applicable □ Not applicable
Unit: RMB
Gains or
losses
from Accumulated Impairme
Beginning changes change in fair nt Purchase SalesItem balance in fair value accrued amount in amount in
Other Ending
value included in in this this period this period changes balance
during equity period
this
period
Financial assets
1. Trading
financial
assets -
206294931.134917.656000006220000016563083
(excluding 74799015.
94390.000.004.06
derivative 27
financial
assets)
2.
Derivative
298320.00-6242.00292078.00
financial
assets
3. Other
debt 67627948.6 389867 13197506. 84724128.investment 0 3.52 64 76
s
4. Other
equity
instrument 383317.67 -383317.67 0.00
investment
s
5. Other
non-current
0.00
financial
assets
Subtotal of -
274604518.402734669197506220000025064704
financial -383317.67 0.00 74799015.
218.916.640.000.82
assets 27
-
Hedged 85802395.0 30154287 29850745 11485687
129962
items 7 00.40 94.58 3.15
7.74
-
Total of the 360406913. 272772 36846262 36070745 36550391
-383317.670.0074799015.above 28 1.17 07.04 94.58 3.97
27
-
Financial 56883334.7 34657800. 88246760.
32477146660.00
liabilities 6 00 00
4.76
Other changes: After the Company regained control of its subsidiary and reconsolidated its financial statements the equity
previously classified as trading financial assets was transferred out.Whether major changes occurred to the measurement attributes of the main assets of the Company within the reporting period
26Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
□Yes□ No
3. Restriction on asset rights as at the end of the reporting period
Item Ending balance (RMB)
Security deposits for notes payable 33113263.10
Futures and options account margin 22848540.40
Gold leasing security deposits and interests 20069638.91
Amount under judicial control 663948.65
Total 76695391.06
VII. Analysis of Investment
1. Overview
□Applicable □ Not applicable
Investment in the reporting period Investment in the same period of the
Change rate
(RMB) previous year (RMB)
20337984.6281106905.72-74.92%
2. Significant equity investment acquired in the reporting period
□ Applicable□ Not applicable
3. Significant non-equity investment ongoing in the reporting period
□ Applicable□ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable□ Not applicable
The Company had no securities investment during the reporting period.
(2) Investment in derivatives
□Applicable □ Not applicable
1) Investment in derivatives for hedging purposes during the reporting period
□Applicable □ Not applicable
Unit: RMB 10000
Type of Initial Beginning Gains Accumulat Purchased Selling Ending Proportion
derivative investme amount or ed change amount amount amount of the
27Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
investment nt losses in fair during the during the investment
amount from value reporting reporting amount in
changes included in period period net assets
in fair equity of the
value Company
during at the end
this of the
period reporting
period
Futures
(Everbright 38.20 0 0 0 221.60 221.60 0 0.00%
account)
Futures (T+D
77.60358.150012738.5713096.7200.00%
account)
Futures (Huatai
1050.00667.4563.66037321.8336601.51387.780.73%
account)
Revenue swap
50.00000360.94360.9400.00%
(CITIC account)
Futures (CITIC
290.6008.0707363.246933.38429.860.23%
account)
Yongan Futures
000035.4135.4100.00%
(revenue swap)
Futures (CITIC
57.20146.61-4.6704996.714677.11466.210.25%
account)
Total 1563.60 1172.21 67.06 0 63038.30 61926.66 2283.85 1.21%
Accounting policies and
specific principles of
accounting for hedging
business during the reporting
No
period and whether there
was any significant change
in them compared to the
previous reporting period
Explanation of actual gains
During the reporting period the futures account incurred an actual hedging loss of RMB 16.0240
and losses during the
million.reporting period
Measurement method of hedge effectiveness: Hedge effectiveness = Change in Futures Price /
Change in Spot Price. The closer this value is to 100% the more effective the hedge. A hedge is
Explanation of hedging
considered highly effective when its effectiveness ranges from 80% to 125%. The Company's
effectiveness
hedge effectiveness consistently exceeds 110% indicating that its hedging strategy is highly
effective.Source of funds for
Owned funds
investment in derivatives
The Company's hedging transactions follow the following basic principles: The value changes of
the futures varieties and contract quantities are roughly equivalent to those of the spot positions;
futures positions are in the opposite direction to spot positions; and the time period in which the
Risk analysis and control
futures position is held corresponds to the time period in which the risk is borne by the spot
measures for positions in
market. The main risks of positions in gold futures include basis risks forced liquidation risks
derivatives during the
and operational error risks. To manage the basis risk when the basis narrows the Company
reporting period (including
strives to use leased gold as inventory and minimize or avoid building proprietary inventory. For
but not limited to market
the forced liquidation risk a risk warning system has been established: In case of significant gold
risks liquidity risks credit
price fluctuations capital planning is done in advance to ensure adequate funds in the margin
risks operational risks and
account. If forced liquidation is triggered by emergency events the incident is reported to the
legal risks)
Company's senior management immediately and the hedging positions that have undergone
forced liquidation will be restored at an appropriate time. To mitigate the operational error risk
the Company has implemented a trader training mechanism strictly adhered to internal policies
28Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
and workflow requirements for operation and review and performed daily reporting. The
Company has established a scientific and effective hedging management system which is
implemented through four key aspects: organizational structure design planning systems
management and evaluation procedures and dynamic risk monitoring.For changes in market prices
or fair value of invested
derivatives during the
During the reporting period the fair value change of the futures contracts held for hedging
reporting period the analysis
purposes was RMB 670600. The Company determined the fair value using the closing price of
of derivative fair value shall
the futures contracts held on the Shanghai Gold Exchange on the last trading day of December
disclose the specific
2024 (December 31) with the floating gain and loss representing the change in fair value.
valuation methods used and
related hypotheses and
parameter setting.Involvement in litigation (if
None
applicable)
Disclosure date of the
announcement of the Board
January 12 2024
of Directors for derivatives
investment approval (if any)
2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable□ Not applicable
During the reporting period the Company had no investment in derivatives for speculative purposes.
5. Usage of raised funds
□ Applicable□ Not applicable
The Company did not use any raised funds during the reporting period.VIII. Sales of Major Assets and Equity
1. Sales of major assets
□ Applicable□ Not applicable
The Company did not sell any major assets during the reporting period.
2. Sales of major equity
□ Applicable□ Not applicable
IX. Analysis of main holding and joint-stock companies
□Applicable □ Not applicable
Main subsidiaries and joint-stock companies contributing over 10% to the Company's net profit
Unit: RMB
Com
Company Registere Operating Operating
pany Main business Total assets Net assets Net profit
name d capital revenue profit
type
29Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Jewelry fair
planning
jewelry
consignment
Shenzhen
sales
Jewelry
Subsi exhibition and 1000000 49730332. 36657263. 6797752.7
Industry -89599.80 701734.71
diary display 00 22 32 1
Service Co.planning
Ltd.conference
services and
marketing
planning
Sales of gold
bars for
Guorun Gold investment
Subsi 2000000 39662881 19806326 22998353
Shenzhen Co. gold recycling 330358.02 150733.58
diary 00 5.49 0.37 71.86
Ltd. and gold
refining/exchan
ge services
Purchase sales
and leasing of
gold ornaments
Shenzhen
and precious
Tellus
Subsi metal products 5000000 93870008. 47250857. 14138975.Treasury 678615.13 825470.21
diary supply chain 0 58 44 74
Supply Chain
management
Tech Co. Ltd.and related
supporting
services
Shanghai
Diamond
Fanyue Subsi 4201478.3 3492569.9
purchase and 3500000 69068.22 40222.12 21203.08
Diamond Co. diary 6 0
sales
Ltd.Shenzhen
Automobile Sales of
Subsi 1896000 19696727 16797716 31171619. 26818508. 21379818.Industry and automobiles
diary 0 4.06 4.24 59 94 25
Trade Co. and spare parts
Ltd.Shenzhen Property
Zhongtian Subsi leasing safe 3662219 58984866 49091785 12382233 78267816. 58458027.Industry Co. diary deposit box 00 4.83 2.87 1.50 73 54
Ltd. leasing
Shenzhen
Huari
-
Automobile Subsi Automobile 6279985.4 1699988.7 1924139.2
20000009399247.0884.25
Sales and diary sales 8 9 3
4
Service Co.Ltd.Shenzhen
Xinyongtong
Motor Vehicle Subsi Property 13797946. 7860981.7 6757673.1 2776108.4 2642913.7
9607800
Inspection diary leasing 59 2 2 8 4
Equipment
Co. Ltd.Shenzhen
Subsi Property 3290000 98703022. 81524101. 12476178. 8870579.7 6683356.6
Tellus
diary leasing 0 52 37 97 5 2
Xinyongtong
30Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Automobile
Development
Co. Ltd.Shenzhen
Tellus
Subsi Property 2991249.6 1959854.0
Chuangying 1500000 732.89 14170.90 51278.96
diary leasing 3 6
Technology
Co. Ltd.Investment in
Shenzhen Joint- industrial
Tellus-Gmond stock development 5370496 36587776 11243200 13243027 59327410. 43930318.Investment comp property 0 5.89 8.52 7.65 87 41
Co. Ltd. any management
and leasing
Shenzhen
SDG Huari
Subsi Property USD 21952591. 17307546. 7991572.8
Automobile 266742.02 842849.92
diary leasing 5000000 94 23 6
Enterprise Co.Ltd.Acquisition and disposal of subsidiaries during the reporting period
□ Applicable□ Not applicable
Description of main holding and joint-stock companies
X. Structured Entities Controlled by the Company
□ Applicable□ Not applicable
XI. Outlook of Future Development
(I) Development strategy
Since the Company formulated the strategy for the transformation to a third-party
comprehensive service provider in the jewelry industry in 2014 it has been unswervingly and
steadily promoting its strategic transformation and project implementation in accordance with the
established plan. After years of exploration and attempts substantial results have been achieved. In
the future the Company will deepen its focus on third-party jewelry services gradually building a
nationally leading digital jewelry trading platform and becoming an international hub for jewelry
and jade transactions. By 2025 the Company will comprehensively develop its business
technology talent and management capabilities around third-party jewelry services continuously
enhancing its platform's competitive advantages and driving breakthrough progress in various
initiatives.(II) Business plan for 2025
1. Promoting party-building collaboration and empowering merchants through party building
leadership: The Company will uphold the leadership of Party building aligning efforts with core
business objectives and serving the overall development strategy. By leveraging several concrete
31Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
projects ("N" initiatives) the Company aims to drive breakthroughs in Party-led development
within the jewelry industry ecosystem and promote the clustered growth of the Tellus Jewelry
ecosystem.
2. Deepening development and intensifying efforts to accelerate platform construction: The
Company will intensify efforts to build a digital jewelry element trading platform that integrates
online and offline functions including regular exhibitions and product viewing transaction
settlement import/export agency supply chain finance and warehousing logistics insurance
services. The jewelry trading team will be further strengthened to accelerate digital transformation.
3. Optimizing the existing product structure in the gold segment to build core competitiveness:
The Company will enhance product R&D and design capabilities to develop a distinctive product
portfolio. It will also strengthen its operations team to create a high-performing market expansion
and operations unit build robust data infrastructure and drive business growth.
4. Benchmarking against industry leaders to fully enhance the comprehensive capabilities of
commercial operations: The Company will complete the business layout and adjustment of its
physical commercial platform expand interconnectivity within its physical platform and create a
fashionable jewelry district in Shuibei. It will also continue improving management standards and
build an efficient commercial operations management team.
5. Optimizing the organizational structure and continuously improving the strategic control
capability: The Company will adopt a performance-driven approach to achieve practical outcomes
through actual efforts. Based on actual needs management tools and mindsets will be upgraded
and management efficiency will be improved to enhance the Company's competitiveness. The
Company will refine its 4S control system and ensure strategy execution through an effective
closed-loop management process.
6. Continuously improving the incentive mechanism and strengthening the construction of
talent teams: The Company will implement a combined short- and long-term incentive policy
refine and optimize the performance assessment plan for business units and complete the formation
of an information technology development team.
7. Effectively consolidating work safety management: The Company will reinforce its work
safety responsibility system formalize and standardize procedures for scattered small-scale
projects conduct regular work safety training and improve the competency of grassroots safety
personnel.(III) Possible risks and countermeasures
In the process of strategy implementation and project operation the Company will objectively
and clearly recognize the possible risks and take active and effective measures to prevent them.
32Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
1. Risk 1: market price fluctuations
The Company's primary raw materials are gold and jewelry. In recent years fluctuations in
international and domestic economic conditions and changes in consumer demand have led to price
fluctuations in gold and other raw materials creating uncertainties for the Company's operations.Countermeasures: First the Company will continuously strengthen risk management and
establish and improve risk prevention and control mechanisms to ensure its compliance operation.Second it will firmly advance its strategic transformation promote the implementation of
transformation projects through innovative business models explore incremental markets expand
business scale and seek new profit growth points to enhance competitiveness and provide a solid
foundation for long-term stable development.
2. Risk 2: insufficient talent team building
With the implementation of transformation projects and business expansion the current pool
of professionals in the jewelry industry cannot meet the Company's rapid development needs.Countermeasures: First the Company will accelerate training of internal professionals through
industry research learning and hands-on business practices. Second it will recruit additional
business personnel with jewelry industry experience to comprehensively improve business
capabilities from market expansion to risk management. Third it will obtain internal and external
resources strengthen professional skills training and provide a platform for employee growth.XII. Reception of Investigation Communication Interview and Other Activities during the
Reporting Period
□Applicable □ Not applicable
Index of
Recept
Way of Types of Main points talked about and general
Reception date ion Visitor
reception visitor information provided investigation
place
information
Telephone Inquiry about whether the
Comp
January 8 2024 communic Individual Investor Company issues a performance N/A
any
ation forecast
Telephone
Comp Inquiry about the Company's
January 11 2024 communic Individual Investor N/A
any business operations
ation
Telephone Inquiry about whether the
Comp
January 19 2024 communic Individual Investor Company issues a performance N/A
any
ation forecast
Telephone
Comp Inquiry about the Company's
February 27 2024 communic Individual Investor N/A
any ESG reporting progress
ation
Telephone
Comp Inquiry about the Company's
March 14 2024 communic Individual Investor N/A
any annual report disclosure timeline
ation
Comp Telephone Inquiry about the Company's
March 19 2024 Individual Investor N/A
any communic business operations and dividend
33Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
ation plans
Telephone
Comp Inquiry about the Company's Q1
April 3 2024 communic Individual Investor N/A
any business performance
ation
Telephone
Comp Inquiry about number of the
April 19 2024 communic Individual Investor N/A
any Company's shareholders
ation
Telephone
Comp Inquiry about the development of
May 21 2024 communic Individual Investor N/A
any the industry
ation
Telephone Inquiry about whether the
Comp
June 13 2024 communic Individual Investor Company purchases directors' N/A
any
ation liability insurance
Telephone
Comp Inquiry about semi-annual
August 9 2024 communic Individual Investor N/A
any operation performance
ation
Telephone
Comp Inquiry about the Company's
September 26 2024 communic Individual Investor N/A
any business development
ation
Telephone
Comp Inquiry about the Company's Q3
October 11 2024 communic Individual Investor N/A
any business performance
ation
Telephone
Comp Inquiry about corporate strategy
December 31 2024 communic Individual Investor N/A
any and business matters
ation
XIII. Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan
Whether the Company has formulated a market value management system
□Yes□ No
Whether the Company has disclosed a valuation enhancement plan
□Yes□ No
XIV. Implementation of the Action Plan for "Improvement in Quality and Return"
Whether the Company has disclosed an announcement on the Action Plan for "Improvement in Quality and Return"
□Yes□ No
34Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section IV Corporate Governance
I. Basic Information on Corporate Governance
During the reporting period the Company continuously improved its corporate governance
structure and internal control system in strict accordance with the Company Law the Securities Law
the Stock Listing Rules of the Shenzhen Stock Exchange the Business Guidelines of Shenzhen Stock
Exchange for Self-discipline Regulation of Listed Companies No. 1 — Standard Operation of Listed
Companies on the Main Board and other relevant laws and regulations. During the reporting period
the Company operated in a standardized manner with strong independence and proper information
disclosure. Its corporate governance complied with the requirements of normative documents for
listed companies. The main aspects of corporate governance are as follows.
1. Shareholders and general meetings of shareholders
The convening and holding procedures of general meetings of shareholders proposal review
procedures and decision-making procedures of the Company all conformed to the relevant
provisions and requirements of the Company Law the Articles of Association and the Rules of
Procedure for General Meetings of Shareholders. The Company treated all shareholders fairly and
especially ensured that minority shareholders enjoyed equal rights in proportion to their
shareholdings. The Company strictly implemented the Detailed Rules for the Implementation of
Online Voting at the General Meeting of Shareholders to ensure all shareholders' rights to
participate in and vote on the Company's decision-making matters allowing them to fully exercise
their rights. All previous General Meetings of Shareholders were witnessed by lawyers to
effectively maintain the legitimate rights and interests of the listed company and all the shareholders.The Company also communicated with minority shareholders through the investor relations column
on the interactive platform of the Shenzhen Stock Exchange (http://irm.cninfo.com.cn) and the
official website telephone and other means ensuring a smooth and fair information exchange with
minority shareholders. Meanwhile it fully listened to the demands and suggestions of minority
shareholders. During the reporting period the Board of Directors of the Company convened and
held the 2023 Annual General Meeting of Shareholders and one Extraordinary General Meeting of
Shareholders. It exercised its functions and powers in accordance with laws and regulations the
Articles of Association and the Rules of Procedure for General Meetings of Shareholders to form
effective resolutions.
2. Directors and the Board of Directors
35Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
During the reporting period the Company had 8 members on the Board of Directors including
3 independent directors. The number of members on the Board of Directors and the board
composition complied with the requirements of relevant laws and regulations and the Articles of
Association. The Board of Directors has three special committees namely the Strategy Committee
the Audit Committee and the Remuneration and Appraisal Committee. Each special committee
strictly abides by the relevant systems and regulations and performs its own duties effectively
strengthening the standardized operation of the work of the Board of Directors of the Company and
providing professional opinions and references for the decision-making of the Board of Directors.During the reporting period the Company held 6 meetings of the Board of Directors and 9 meetings
of special committees of the Board of Directors in accordance with laws and regulations the
Articles of Association the Rules of Procedure for the Board of Directors and the rules of
procedure for special committees. The convening procedures proposal review procedures and
decision-making procedures of the meeting all complied with relevant regulations. The directors
attended the board meetings with a serious and responsible attitude and actively participated in
relevant training with familiarity with relevant laws and regulations and an adequate understanding
of their rights obligations and responsibilities. The members of the Board of Directors kept a
diligent and responsible attitude with a reasonable structure of expertise in the performance of their
duties and safeguarded the overall interests of the Company. The independent directors expressed
independent opinions on relevant matters with a fair and diligent attitude improving the scientific
and fair decision-making of the Board of Directors.
3. Supervisors and the Board of Supervisors
During the reporting period the Board of Supervisors of the Company consisted of 5
supervisors including 2 employee representative supervisors. The number of supervisors on the
Board of Supervisors and the board composition met the requirements of laws regulations and the
Articles of Association. During the reporting period the Company held 4 meetings of the Board of
Supervisors in accordance with relevant laws and regulations the Articles of Association and the
Rules of Procedure for the Board of Supervisors. The supervisors supervised the Company's
operation and financial status and the legality and compliance of the Company's directors and senior
executives in performing their duties and safeguarded the legitimate rights and interests of the
Company and shareholders.
4. About senior executives
The senior executives of the Company assumed clear responsibilities and performed their
duties in strict accordance with various management systems such as the Articles of Association and
36Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the Working Rules for General Manager held a diligent and responsible attitude and earnestly
implemented and executed the resolutions of the Board of Directors.
5. Information disclosure and investor relation management
The Company in strict accordance with the requirements of the Information Disclosure System
designated the Secretary of the Board of Directors of the Company to be responsible for
information disclosure reception of shareholders' visits and consultation and disclosure of relevant
information in a true accurate complete and timely manner in strict accordance with relevant
regulations. During the reporting period the Company designated Securities Times and CNINFO as
the newspaper and website for information disclosure ensuring that all shareholders had equal
opportunities to access information.
6. Relationship between the controlling shareholder and the listed company
The controlling shareholder legally exercised the rights of investors through the General
Meeting of Shareholders without directly or indirectly intervening in the Company's decision-
making and operations through any other means. There were no occurrences of misappropriating
the funds of the listed company. The Company and the controlling shareholder maintained a clear
separation in terms of assets finances personnel organization and business operations. The
Company's Board of Directors Board of Supervisors and internal management organizations
operated independently to ensure significant decisions of the Company were made following
standardized procedures.
7. Performance evaluation and incentive and restraint mechanisms
The Company gradually established and improved the open and transparent performance
evaluation standards and incentive and restraint mechanisms for directors supervisors and senior
executives. The appointment of senior executives of the Company was open and transparent
complying with the provisions of laws and regulations.
8. About stakeholders
While pursuing economic benefits and protecting the interests of shareholders the Company
fully respected and safeguarded the legitimate rights and interests of stakeholders and effectively
communicated and cooperated with stakeholders. The Company paid attention to the protection of
employees' rights and interests and supported the Congress of Employees and trade union
organizations to exercise their functions and powers according to law. During the reporting period
the Company cultivated talents attached importance to social responsibility paid attention to social
welfare undertakings such as welfare environmental protection and voluntary service and
achieved good social benefits while achieving economic benefits. As of the end of the reporting
37Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
period the corporate governance status of the Company complied with the requirements specified
in relevant normative documents concerning the governance of listed companies.Is there any significant misalignment between the actual governance of the Company and the provisions of laws administrative
regulations or the rules of CSRC governing the governance of listed companies
□Yes□ No
There was no significant misalignment between the actual governance of the Company and the provisions of laws administrative
regulations or the rules of CSRC governing the governance of listed companies.II. Independence of the Company from Controlling Shareholder and Actual Controller in
terms of Assets Personnel Finance Organizations and Business
The Company is independent of the controlling shareholder in terms of business personnel
assets organizations and finance possessing independent and complete business operations with
autonomous operating capabilities.
1. Business: The Company is an independent legal entity. It is completely independent of the
controlling shareholder in terms of business possessing an independent and complete business
system and the ability to operate independently. The Company has independent operation and
service systems and its own leading business. There is no horizontal competition between the
Company and the controlling shareholder or related parties.
2. Personnel: The Company operates completely independently in terms of labor personnel
and wage management and has formulated an independent management system; the General
Manager Deputy General Managers Chief Financial Officer Secretary of the Board of Directors
and other senior executives of the Company have all worked in the Company and received
compensation while serving in their respective roles within the Company without holding any
positions in shareholder units. The directors supervisors and senior executives of the Company are
all selected in strict accordance with the requirements and procedures of relevant laws and
regulations such as the Company Law Articles of Association and rules of procedure for the
General Meeting of Shareholders the Board of Directors and the Board of Supervisors.
3. Assets: The Company independently and completely owns the business system and related
assets related to its operations and independently registers establishes accounts for accounts and
manages the assets. The assets are independent of the controlling shareholder and other enterprises
controlled by it.
4. Finance: The Company has set up an independent financial accounting department and
established a complete set of accounting systems and financial management systems; There is no
case where the controlling shareholder interferes with the Company's capital operation; The
Company has opened an independent bank account and there is no deposit of funds into the
account of a finance company or a settlement center controlled by a major shareholder or other
38Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
related parties; The Company does not share bank accounts with the controlling shareholder or
other enterprises under its control.
5. Organization: The Board of Directors the Board of Supervisors and other internal
organizations of the Company operate independently. All organizations within the Company are set
up according to the requirements of the specifications of listed companies and the actual business
characteristics of the Company. The Company has an independent office address.III. Horizontal Competition
□ Applicable□ Not applicable
IV. Annual General Meeting of Shareholders and Extraordinary General Meetings of
Shareholders during the Reporting Period
1. General Meetings of Shareholders during the reporting period
Attendanc
e
Holding Disclosure
Session Type proportio Meeting's resolutions
date date
n of
investors
Annual For details please refer to the Announcement on
2023 Annual General Resolutions of 2023 Annual General Meeting of
April 23 April 24
General Meeting Meeting of 54.36% Shareholders (Announcement No.: 2024-015) on
20242024
of Shareholders Shareholde Securities Times and CNINFO
rs (www.cninfo.com.cn).Extraordin
The First For details please refer to the Announcement on
ary
Extraordinary Resolutions of the First Extraordinary General
General December December
General Meeting 54.65% Meeting of Shareholders in 2024 (Announcement
Meeting of 19 2024 20 2024
of Shareholders No.: 2024-037) on Securities Times and CNINFO
Shareholde
in 2024 (www.cninfo.com.cn).rs
2. Preferred shareholders with resumed voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable□ Not applicable
V. Directors Supervisors and Senior Executives
1. Basic information
Endi Numb Numbe Othe Numb ReasNumber
ng er of r of r er of ons
Starting of
Gen Ag Service date shares decreas incre shares for
Name Position date of increase
der e status of held at ed ase/d at the the
tenure d shares
tenu the shares ecrea end of increin the
re begin in the se the ase/dperiod
ning period (shar perio ecrea
39Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
of the (share) (share) e) d se of
period (share share
(share ) s
)
Fu Mal In September
52 Chairman 0 0 0 0 0 -
Chunlong e office 7 2018
Hong Mal In September
51 Director 0 0 0 0 0 -
Wenya e office 13 2021
Mal In April 29
Yang Xi 44 Director 0 0 0 0 0 -
e office 2022
Huang Mal In September
38 Director 0 0 0 0 0 -
Liang e office 15 2022
Huang Fem In October
42 Director 0 0 0 0 0 -
Tianyang ale office 12 2023
Chief
Huang Fem In August 2
42 Financial 0 0 0 0 0 -
Tianyang ale office 2023
Officer
Hu Mal Independen In January 4
6000000-
Yuming e t director office 2018
Jiang Mal Independen In September
6200000-
Dinghang e t director office 7 2018
Zhang Mal Independen In September
5100000-
Dong e t director office 7 2018
Chairman
Guo Mal In September
61 of Board of 0 0 0 0 0 -
Xiaodong e office 7 2018
Supervisors
Dai Mal In May 18
49 Supervisor 0 0 0 0 0 -
Zhiwei e office 2023
Fem In May 18
Ye Cao 40 Supervisor 0 0 0 0 0 -
ale office 2023
Liu Fem Employee Resigne September
5600000-
Haicheng ale Supervisor d 7 2018
Zhang Mal Employee Resigne September
4100000-
Zheng e Supervisor d 7 2018
Deputy
Tan Mal Secretary In September
5700000-
Zhong e of Party office 7 2018
Committee
Deputy
Mal In October
Xie Jing 60 General 0 0 0 0 0 -
e office 25 2018
Manager
Deputy
Mal In September
Qi Peng 52 General 0 0 0 0 0 -
e office 29 2021
Manager
Secretary
Mal of the In December
Qi Peng 52 0 0 0 0 0 -
e Board of office 28 2015
Directors
Total -- -- -- -- -- -- 0 0 0 0 0 --
Note: The terms of office for the 10th Board of Directors and the Board of Supervisors of the Company have
expired. As the preparation for nominating candidates for the new Board of Directors and the Board of
Supervisors is still underway and to ensure the continuity and stability of the work of the Board of Directors and
the Board of Supervisors the election of the Board of Directors and the Board of Supervisors of the Company will
40Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
be postponed and the terms of office for the special committees under the Board of Directors and the senior
executives of the Company will also be extended accordingly. For details please refer to the Indicative
Announcement on the Postponement of the Election of the Board of Directors and the Board of Supervisors
(Announcement No.: 2024-033) disclosed by the Company on Securities Times and CNINFO
(http://www.cninfo.com.cn) on November 27 2024.Were there any resignations of directors or supervisors and dismissal of senior executives during the reporting period
□Yes □ No
Mr. Zhang Zheng the former Employee Supervisor of the Company applied to resign from his
position as an Employee Supervisor of the 10th Board of Supervisors due to work arrangements.For details please refer to the Announcement on the Resignation of the Employee Supervisor of the
Company (Announcement No.: 2024-013) published by the Company on April 9 2024 via
Securities Times and CNINFO (www.cninfo.com.cn).Ms. Liu Haicheng the former Employee Supervisor of the Company applied to resign from
her position as an Employee Supervisor of the 10th Board of Supervisors due to reaching the
statutory retirement age. For details please refer to the Announcement on the Resignation of the
Employee Supervisor (Announcement No.: 2024-32) published by the Company on November 5
2024 via Securities Times and CNINFO (www.cninfo.com.cn).
Change of Directors Supervisors and Senior Executives of the Company
□Applicable □ Not applicable
Name Position Type Date Reason
Zhang Employee Resigning from the position of Employee
Resigned April 9 2024
Zheng Supervisor Supervisor due to work arrangements
Resigning from the position of Employee
Liu Employee
Resigned November 5 2024 Supervisor due to reaching the statutory
Haicheng Supervisor
retirement age
2. Employment
Professional background the main work experience and the current main duties of the Company's incumbent directors
supervisors and senior executives
Name Main Work Experience and Employment
Born in 1973 he holds a master's degree and is a senior human resource manager. He once served as a Deputy Working
Group Leader at Shenzhen SDG Huatong Packaging Co. Ltd. Deputy Business Manager Business Manager Deputy
Fu Director and Director of the Human Resources Department of Shenzhen Special Economic Zone Development Group
Chunlong Co. Ltd. Vice President of Shenzhen Special Economic Zone Development Group Co. Ltd. Supervisor of Shenzhen
State-Owned Duty Free Commodity (Group) Co. Ltd. and Supervisor of the Company. He is currently the Secretary of
the Party Committee and Chairman of the Board of Directors of the Company.Born in 1974 he holds a master's degree and is a senior accountant certified public accountant and Certified Internal
Auditor (CIA). He once served as Financial Manager of the Business Department and Audit Manager of the Supervision
Hong and Audit Headquarters of Guosen Securities Co. Ltd. Chief Financial Officer of Shenzhen Institute of Building
Wenya Research Co. Ltd. Deputy Director of the Finance Department of Shenzhen Yuanzhi Investment Co. Ltd. official
responsible for the budget management and financial supervision of municipal state-owned enterprises at the Statistics
and Budget Department of the State-owned Assets Supervision and Management Commission of Shenzhen Municipal
People's Government and Deputy Director of the Finance Department and Director of the Compliance Risk Control
41Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Department of Shenzhen Kunpeng Capital Co. Ltd. He is currently a Member of the Party Committee Director and
Chief Financial Officer of Shenzhen Special Economic Zone Development Group Co. Ltd. and a Director of the
Company.Born in 1981 he holds a master's degree. He successively held the posts of Engineer of AVIC SCC Business Manager
of the Secretariat of the Board of Directors of Shenzhen SDG Information Co. Ltd. Senior Director of the Asset
Management Department of Shenzhen Yantian Port Holdings Co. Ltd. Secretary of the Board of Directors of Shenzhen
YangXi Unilumin Technology Co. Ltd. and Capital Operation Manager of the Office of the Secretary of the Board of Directors
Capital Operation Manager of the Strategic Investment Department and Deputy General Manager of the Strategic
Investment Department of Shenzhen Special Economic Zone Development Group Co. Ltd. He is currently General
Manager of the Strategic Investment Department of Shenzhen Special Economic Zone Development Group Co. Ltd. and
a Director of the Company.Born in 1987 he holds a bachelor's degree in economics. He also holds the SZSE Qualification Certificate for Secretary
of the Board of Directors and the Securities Qualification Certificate. He successively worked at the Nanshan District
Administration of Work Safety Shenzhen Qixin Construction Group Co. Ltd. Hong Kong Litong International Holdings
Huang (Group) Limited and China Baoan Group Co. Ltd. In May 2017 he joined Shenzhen Special Economic Zone
Liang Development Group Co. Ltd. and successively served as Office Secretarial Manager Senior Secretarial Manager and
Deputy Office Director (presiding over the work) and Director. He is currently General Manager of the Enterprise
Management and Legal Affairs Department (Board Secretary Office) of Shenzhen Special Economic Zone Development
Group Co. Ltd. and a Director of the Company.Born in December 1983 she has a bachelor's degree in management and is a non-practicing certified public accountant
tax advisor and intermediate accountant. She successively served as an auditor at Baker Tilly China Certified Public
Huang Accountants Shenzhen Branch a specialist responsible for consolidated statements at the Finance Department of the
Tianyang Company and Accounting Manager Senior Accounting Manager and Deputy General Manager of the Financial
Management Department of Shenzhen Special Economic Zone Development Group Co. Ltd. She currently serves as the
Company's Director and Chief Financial Officer.Born in 1965 he holds a doctor's degree and is a professor of accounting. He successively worked as a teaching
assistant lecturer and associate professor at the School of Economics of Xiamen University an associate professor at the
Hu Management School of Jinan University Deputy Director and Director of the Accounting Department of the
Yuming Management School of Jinan University Deputy Dean of the International School of Jinan University and Deputy Dean
of the Management School of Jinan University. He is currently a professor and doctoral supervisor at the Management
School of Jinan University an Independent Director of By-Health Co. Ltd. and an Independent Director of the
Company.Born in 1963 he holds a master's degree and is a lawyer. He once served as Director of the Regulation Consultation
Department of Shenzhen Social Security Bureau Deputy Director of the Office of Shenzhen Labor Bureau Office
Jiang Director of Shenzhen Special Economic Zone Development Group Co. Ltd. Chairman of Shenzhen SDG Songli Co.Dinghang Ltd. Party Branch Secretary Chairman and General Manager of Shenzhen Communication Industry Co. Ltd. and an
apprentice lawyer at Guangdong Zhong An Law Office. He is now a Honorary Partner of Shanghai AllBright (Shenzhen)
Law Firm an arbitrator at the Shenzhen Court of International Arbitration and a representative to the Seventh Party
Congress of Shenzhen. He is an independent director of the Company.Born in 1974 he has a doctor's degree and is a postdoctoral fellow in economics professorate senior economist senior
gold investment analyst and GIA research gemologist. He once served as Deputy General Manager of Shenzhen
Zhang Qiangzhuang Computer Technology Co. Ltd. Deputy General Manager of Shenzhen Brain Times Economy and Culture
Dong Co. Ltd. Assistant to the President of Hong Kong Leader Culture Media Co. Ltd. General Manager of ShenzhenZhongshi Advertising Co. Ltd. General Manager of Heilongjiang Liuguifu Jewelry Co. Ltd. and President of Liuguifu
Jewelry Group Co. Ltd. He serves as Chairman of the Board of Chaozuan Jewelry (Shenzhen) Co. Ltd. and Chairman of
the Board of Kunmi Brand Culture (Hainan) Co. Ltd. and an independent director of the Company.Born in 1964 he holds a master's degree and is a senior economist. He once served as Deputy General Manager of
Shenzhen SDG Development Center Construction Supervision Company Director and General Manager of Shenzhen
Guo SDG Development Center Property Management Company Deputy General Manager of Shenzhen SDG Property Co.Xiaodong Ltd. Chairman of the Board of Supervisors of Shenzhen SDG Real Estate Co. Ltd. and Chairman of the Board of
Supervisors of Shenzhen SDG Xiaomeisha Tourism Development Co. Ltd. During the reporting period he served as
Chairman of the Board of Supervisors of the Company.Born in 1976 he is a member of the Communist Party of China with a bachelor's degree. He holds the titles of certified
public accountant accountant and economist. He once served as Deputy General Manager and Chief Financial Officer of
Dai Zhiwei Guangdong Kaisa Jiayun Technology Co. Ltd. Manager of the Finance Department and Strategic Operation Department
of Shenzhen SDG Real Estate Co. Ltd. and Deputy General Manager of the Financial Management Department of
Shenzhen Special Economic Zone Development Group Co. Ltd. He is currently Chief Financial Officer of Shenzhen
SDG Service Co. Ltd. and a Supervisor of the Company.Born in 1985 she is a member of the Communist Party of China with a bachelor's degree and an intermediate
YeCao accountant. Previously she was the head of the Audit Department of Shenzhen SDG Information Co. Ltd. She is
currently the Deputy General Manager of the Audit Risk Management Department of Shenzhen Special Economic Zone
Development Group Co. Ltd. and a Supervisor of the Company.Tan Zhong Born in 1968 he holds a bachelor's degree and has a lawyer qualification certificate and an enterprise legal counsel
42Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
qualification certificate. He once served as a legal counsel of Shenzhen Auto Motive Industry & Trade General
Company Deputy Director of the Secretariat of the Board of Directors Legal Affairs Representative and Manager of the
Enterprise Management Department of the Company and General Manager and Secretary of the Party General Branch of
Shenzhen SDG Huari Automobile Enterprise Co. Ltd. He currently serves as the Company's Deputy Secretary of the
Party Committee and Chairman of the Trade Union.Born in 1965 he is a Canadian and holds a bachelor's degree in Engineering. He is a senior engineer and certified
supervision engineer. He once served as a structural engineer at Hunan Light Industry Design Institute an engineer at the
Hunan Branch of the Bank of China General Manager Assistant of the Real Estate Department and Manager of the
Xie Jing Engineering Department of Shenzhen Special Economic Zone Development Group Co. Ltd. Deputy General Manager
of Shenzhen Jincheng Real Estate Group Co. Ltd. Executive President of Shenzhen Jiaanda Investment Group Co. Ltd.and General Manager of Land Reserve Center of Weiye Holdings Ltd. He currently serves as Deputy General Manager of
the Company.Born in 1973 he holds a master's degree and is an economist. He has obtained the SZSE Qualification Certificate for
Secretary of the Board of Directors. He once served as the Secretary of the Chairman and the head of the Information
Center of Shenzhen Special Economic Zone Development Group Co. Ltd. Deputy Director of the Secretariat of the
Qi Peng Board of Directors Deputy Manager of the Enterprise Management Department and Manager of the Business
Department of the Automobile Business Division of Shenzhen Tellus Holding Co. Ltd. General Manager of Shenzhen
Tellus Automobile Service Chain Co. Ltd. General Manager of Shenzhen Tellus Xinyongtong Automobile Development
Co. Ltd. and Director of the Secretariat of the Board of Directors of the Company. He currently serves as Deputy
General Manager and Secretary of the Board of Directors of the Company.Employment at shareholder units
□Applicable □ Not applicable
Whether there is
Ending compensation or
Position in the shareholder
Individual Shareholder unit Starting date of tenure date of allowance in the
unit
tenure shareholder unit
or not
Shenzhen Special
Member of the Party
Economic Zone
Hong Wenya Committee Director and June 15 2021 Yes
Development Group
Chief Financial Officer
Co. Ltd.Shenzhen Special
General Manager of
Economic Zone
Yang Xi Strategic Investment December 6 2021 Yes
Development Group
Department
Co. Ltd.General Manager of the
Shenzhen Special
Enterprise Management
Economic Zone
Huang Liang and Legal Affairs April 16 2024 Yes
Development Group
Department (Board
Co. Ltd.Secretary Office)
Shenzhen Special
Economic Zone Deputy General Manager
Ye Cao February 1 2023 Yes
Development Group of Audit Department
Co. Ltd.Conditions on
service in The positions of the Company's directors supervisors and senior executives in other units are those of non-
shareholder holding subsidiaries of the Company.unit
Employment at other units
□Applicable □ Not applicable
Whether there is
Position held in other Starting date of Ending date of compensation or
Individual Name of other units
units tenure tenure allowance in the
other units or not
Shenzhen SDG October 28 October 27
Hong Wenya Director No
Information Co. Ltd. 2024 2027
43Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Shenzhen SEZ
November 29
Hong Wenya Construction Group Co. Supervisor No
2021
Ltd.Shenzhen SDG October 28 October 27
Yang Xi Director No
Information Co. Ltd. 2024 2027
Shenzhen Zhishenggao
Yang Xi Technology Development Chairman June 26 2023 No
Co. Ltd.Shenzhen SDG Property
November 20
Dai Zhiwei Asset Management Co. Director No
2024
Ltd.Shenzhen Shenshan
Special Cooperation February 9
Dai Zhiwei Supervisor No
Zone SDG Saige 2023
Technology Co. Ltd.Shenzhen SDG Service October 24
Dai Zhiwei Chief Financial Officer Yes
Co. Ltd. 2024
Shenzhen SDG Shengao
November 10
Ye Cao Club Management Co. Supervisor No
2023
Ltd.Shenzhen SDG October 28 October 27
Ye Cao Supervisor No
Information Co. Ltd. 2024 2027
Shenzhen Microgate Chairman of Board of
Ye Cao April 24 2023 April 20 2026 No
Technology Co. Ltd. Supervisors
Professor and Doctoral
Hu Yuming Jinan University Supervisor of the June 1 2003 Yes
School of Management
August 24 August 23
Hu Yuming By-Health Co. Ltd. Independent director Yes
20232026
Shanghai Allbright
Jiang Dinghang Senior Partner April 1 2005 Yes
(Shenzhen) Law Offices
Shenzhen Court of
Jiang Dinghang Arbitrator No
International Arbitration
Chaozuan Jewelry December 12
ZhangDong Chairman Yes
(Shenzhen) Co. Ltd. 2024
Kunmi Brand Culture October 25
ZhangDong Chairman Yes
(Hainan) Co. Ltd. 2022
Conditions on
The positions of the Company's directors supervisors and senior executives in other units are those of non-
service in other
holding subsidiaries of the Company.units
Penalties imposed by securities regulatory institution in past three years on directors supervisors and senior executives who are in-
service and left their posts during the reporting period
□ Applicable□ Not applicable
3. Compensation of Directors Supervisors and Senior Executives
The decision-making procedures determination basis and actual payment of the compensation of directors supervisors and senior
executives shall be implemented in strict accordance with the Company's Detailed Rules for the Implementation of Compensation
and Appraisal Committee of the Board of Directors Management Measures for Compensation and Performance of the
Management Team Compensation Management System for Headquarters Staff Performance Management Measures for
Headquarters Staff and other relevant systems.Compensation of the directors supervisors and senior executives of the Company during the reporting period
Unit: RMB 10000
44Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Whether to
Total
receive
compensation
Gende compensation
Name Age Position Service status before tax
r from related
received from the
parties of the
Company
Company
Fu Chunlong Male 52 Chairman In office 93.48 No
Hong Wenya Male 51 Director In office 0 Yes
Yang Xi Male 44 Director In office 0 Yes
Huang Liang Male 38 Director In office 0 Yes
Femal Director Chief Financial
Huang Tianyang 42 In office 60.39 No
e Officer
Hu Yuming Male 60 Independent director In office 8 No
Jiang Dinghang Male 62 Independent director In office 8 No
Zhang Dong Male 51 Independent director In office 8 No
Chairman of Board of
Guo Xiaodong Male 61 In office 0 No
Supervisors
Dai Zhiwei Male 49 Supervisor In office 0 Yes
Femal
Ye Cao 40 Supervisor In office 0 Yes
e
Femal
Liu Haicheng 56 Employee Supervisor Resigned 25.5 No
e
Zhang Zheng Male 41 Employee Supervisor Resigned 3.38 No
Deputy Secretary of
Tan Zhong Male 57 In office 69.84 No
Party Committee
Deputy General
Xie Jing Male 60 In office 123.6 No
Manager
Deputy General
Qi Peng Male 51 Manager Secretary of In office 67.84 No
the Board of Directors
Total -- -- -- -- 468.03 --
Other information
□ Applicable□ Not applicable
VI. Duty Performance of Directors during the Reporting Period
1. Information of the Board of Directors during the reporting period
Session Holding date Disclosure date Meeting's resolutions
The Fifteenth For details please refer to the Announcement on Resolutions
Extraordinary of the Fifteenth Extraordinary Meeting of the Tenth Board of
January 11 2024 January 12 2024
Meeting of the Tenth Directors (Announcement No.: 2024-001) of Securities
Board of Directors Times and CNINFO (www.cninfo.com.cn)
For details please refer to the Announcement on Resolutions
The Tenth Formal
of the Tenth Formal Meeting of the Tenth Board of Directors
Meeting of the Tenth March 26 2024 March 28 2024
(Announcement No.: 2024-005) of Securities Times and
Board of Directors
CNINFO (www.cninfo.com.cn)
For details please refer to the Announcement on Resolutions
The Eleventh Formal
of the Eleventh Formal Meeting of the Tenth Board of
Meeting of the Tenth April 23 2024 April 25 2024
Directors (Announcement No.: 2024-016) of Securities
Board of Directors
Times and CNINFO (www.cninfo.com.cn)
The Twelfth Formal For details please refer to the Announcement on Resolutions
Meeting of the Tenth August 20 2024 August 21 2024 of the Twelfth Formal Meeting of the Tenth Board of
Board of Directors Directors (Announcement No.: 2024-022) of Securities
45Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Times and CNINFO (www.cninfo.com.cn)
The Thirteenth For details please refer to the Announcement on Resolutions
Formal Meeting of of the Thirteenth Formal Meeting of the Tenth Board of
October 23 2024 October 24 2024
the Tenth Board of Directors (Announcement No.: 2024-026) of Securities
Directors Times and CNINFO (www.cninfo.com.cn)
The Sixteenth For details please refer to the Announcement on Resolutions
Extraordinary December 2 of the Sixteenth Extraordinary Meeting of the Tenth Board of
December 3 2024
Meeting of the Tenth 2024 Directors (Announcement No.: 2024-034) of Securities
Board of Directors Times and CNINFO (www.cninfo.com.cn)
2. Attendance of directors at the Board of Directors and General Meeting of Shareholders
Attendance of directors at the Board Meeting and General Meeting of Shareholders
Whether they
Number of
Attendances Attendances have failed to
attendances Attendances
Attendances at the Board at the Board Times of attend the
to the Board at the
Name of at the Board Meeting Meeting absence at Board Meeting
Meeting General
Director Meeting in through through the Board in person for
during the Meeting of
person communicati entrusting Meeting two
reporting Shareholders
on tools others consecutive
period
times
Fu Chunlong 6 2 4 0 0 No 2
Hong Wenya 6 2 4 0 0 No 0
Yang Xi 6 2 4 0 0 No 0
Huang Liang 6 2 4 0 0 No 1
Huang
6 2 4 0 0 No 2
Tianyang
Jiang
6 2 4 0 0 No 1
Dinghang
Hu Yuming 6 2 4 0 0 No 2
Zhang Dong 6 1 5 0 0 No 2
Explanation on failure to attend in person at the Board Meeting for two consecutive times
3. Objection to related matters of the Company by directors
Whether the directors have any objection to the related matters of the Company or not
□Yes□ No
The directors did not raise any objection to related matters during the reporting period.
4. Other instructions on the duty performance of directors
Whether the suggestions related to the Company proposed by the directors are accepted or not
□Yes □ No
Description on acceptance or non-acceptance of relevant suggestions related to the Company proposed by the directors
During the reporting period all directors of the Company carried out their work in
strict accordance with the Company Law the Securities Law the Business Guidelines of
Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 1 — Standard
Operation of Listed Companies on the Main Board and other laws regulations and normative
documents as well as the Articles of Association and the Rules of Procedure of the Board of
46Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Directors and were faithful to their duties diligent and responsible. They all actively attended the
Board Meeting understood the operational substance of the matter under consideration carefully
reviewed and discussed various proposals and put forward targeted suggestions for the Company's
internal control operation management and strategic layout. In accordance with the relevant
provisions of the Measures for the Administration of Independent Directors of Listed Companies
the independent directors of the Company give full play to their own professional knowledge make
independent and impartial judgments carry out effective supervision on the financial production
and operation activities and information disclosure of the Company play a positive role in the
scientific decision-making and standardized operation of the Board of Directors and effectively
safeguard the legitimate rights and interests of the Company and all shareholders. The Company
listens carefully to the suggestions put forward by the directors and actively adopts reasonable
suggestions that meet the development of the Company.VII. Special Committees Set under the Board of Directors during the Reporting Period
Numb Important Other
Name
er of comments perfor Details of
of
Members meeti Holding date Content of meeting and mance objection
Commi
ngs suggestion of s (if any)
ttee
held s duties
1. Proposal on the Development of
January 10 Being
Hedging Business by Holding - -
2024 approved
Subsidiary
1. Announcement on the preliminary
January 18 Being
arrangements for auditing the 2023 - -
2024 approved
annual financial report
1. 2023 Annual Report and Summary
Audit 2. 2023 Annual Internal Control Self-
Fu
Commi evaluation Report
Chunlong March 25 Being
ttee of 3. Report on Evaluation of Accounting - -
Hong 2024 approved
the Firm's Performance and Audit
Wenya Hu
Tenth 6 Committee's Performance of
Yuming
Board Supervisory Responsibilities in 2023
Jiang
of
Dinghang April 22 Being
Directo 1. Q1 Report of 2024 - -
Zhang Dong 2024 approved
rs 1. 2024 Semi-annual Report
2. Proposal on Changes in Accounting
August 19 Being
Estimates - -
2024 approved
3. Proposal on Amending the
Accounting System
1. Q3 Report of 2024
October 22 Being
2. Proposal on renewal of the - -
2024 approved
Company's annual audit institution
Compe Fu 1. Proposal on Performance IndicatorsMarch 26 Being
nsation Chunlong of the Company's Management Team in - -2024 approved
and Hong 3 2024
Apprai Wenya Hu October 21 1. Proposal on the Probationary Being
sal Yuming - -2024 Assessment Results of the Company's approved
47Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Commi Jiang Chief Financial Officer
ttee of Dinghang
1. Proposal on the Performance
the Zhang Dong
Assessment Results of the Company's
Tenth
December 2 Management Team in 2023; 2. Proposal Being
Board - -
2024 on Approval and Payment of Project approved
of
Bonuses for Some Members of the
Directo
Management Team
rs
VIII. Work of the Board of Supervisors
Whether the Board of Supervisors found any risks in the Company during its oversight activities in the reporting period.□Yes□ No
The Supervisory Board has no objections to the oversight matters during the reporting period.IX. Employees of the Company
1. Number of employees professional composition and level of education
Number of existing employees in the parent company at the end of
104
the reporting period (person)
Number of existing employees in the main subsidiaries at the end of
56
the reporting period (person)
Total number of existing employees at the end of the reporting
160
period (person)
Total number of employees payable in current period (person) 185
Number of retired employees with expenses incurred by the parent
0
company and main subsidiaries (person)
Professions
Type of professions Number of professional persons (person)
Production personnel 0
Sales personnel 34
Technician 12
Financial personnel 15
Administrative personnel 99
Total 160
Level of education
Category Number of employees (person)
Master's degree and above 30
Bachelor's degree 93
Junior college and below 37
Total 160
2. Compensation policy
The Company shall strictly follow the Compensation Management System for Headquarters
Staff Performance Appraisal Management System for Headquarters Staff and other systems.
48Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3. Training plan
The Company attaches great importance to employee training. During the reporting period it
established an employee training system improved the new employee training manual and
produced a new employee training courseware package; organized induction training for new
employees and face-to-face discussions with senior executives and capacity improvement training
for middle-level managers; established a mentor system for new employees; and helped improve
professional skills through online books offline magazines and professional training.
4. Labor outsourcing
□ Applicable□ Not applicable
X. Profit Distribution and Capital Reserve Converted into Share Capital of the Company
Preparation implementation or adjustment of the profit distribution policy during the reporting period especially the cash
dividend policy
□Applicable □ Not applicable
The Company attaches great importance to the reasonable return to investors. The Articles of
Association specifies the standards and proportions of cash dividends decision-making procedures
and mechanisms and the form of profit distribution. The Company strictly implements the Articles
of Association and the resolutions of the General Meeting of Shareholders. The standards and
proportions of dividend distribution are clear and definite the relevant decision-making procedures
and mechanisms are complete the minority shareholders have the opportunity to fully express their
opinions and demands and the legitimate rights and interests of minority shareholders are fully
safeguarded.Special Explanation on Cash Dividend Policy
Whether it complies with the provisions of the Articles of Association or the
Yes
requirements of resolutions of the general meeting of shareholders:
Whether the dividend standards and proportions are definite and clear: Yes
Whether the relevant decision-making processes and mechanisms are complete: Yes
Whether the independent directors perform their duties and play their due role: Yes
If the Company does not make cash dividends it shall disclose the specific reasons and
N/A
the next measures to be taken to enhance the level of returns for investors:
Whether the minority shareholders have the opportunity to fully express their opinions
Yes
and demands and whether their legitimate rights and interests are adequately protected
Whether the conditions and procedures for adjusting and changing the cash dividend
N/A
policy are compliant and transparent:
During the reporting period the Company had profits and the parent company had positive distributive profit for shareholders;
however the cash bonus distribution pre-plan was not proposed
□ Applicable□ Not applicable
49Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Profit distribution and capital reserve converted into share capital during the reporting period
□Applicable □ Not applicable
Number of bonus shares per 10 shares (share) 0
Number of dividends per 10 shares (RMB) (tax-inclusive) 1
Base of share capital in distribution pre-plan (share) 431058320
Amount of cash dividends (RMB) (tax-inclusive) 43105832.00
Amount of cash dividends in other ways (such as share repurchase)
0.00
(RMB)
Total amount of cash dividends (including other ways) (RMB) 43105832.00
Distributable profit (RMB) 92397334.74
The proportion of total cash dividends (including other ways) to total
100%
profit distribution
Cash dividends for the current reporting period
Others
Description of details on pre-plan of profit distribution or transfer from capital reserve to share capital
To actively benefit shareholders and enable investors to participate in and share the operating results of the Company's
development according to the Articles of Association the Shareholder Return Plan for the Next Three Years (2023-2025) of the
Company the Stock Listing Rules of the Shenzhen Stock Exchange and other regulations on cash dividends and by taking into
account the Company's future strategic layout and other capital expenditure needs the Company planned to distribute a cash
dividend of RMB 1 (including tax) for every 10 shares to all shareholders based on the total share capital of 431058320 shares as
of December 31 2024 with a total cash dividend of RMB 43105832.00 without bonus shares or capital increase. This profit
distribution plan shall be implemented after being reviewed and approved by the General Meeting of Shareholders.XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
□ Applicable□ Not applicable
During the reporting period there was no equity incentive plan employee stock ownership
plan or other employee incentive measures and their implementation for the Company.XII. Establishment and Implementation of Internal Control System during the Reporting
Period
1. Establishment and implementation of internal control
During the reporting period the Company strictly complied with the requirements of the
Company Law the Articles of Association and the Basic Standard for Enterprise Internal Control
and aligned with industry characteristics and the Company’s actual operations to continue to
establish improve and refine its internal control system. Efforts were made to strengthen internal
audit supervision enhance internal control training and awareness and promote a culture of
compliance operations. These measures ensured the effective implementation of internal control
mechanisms enhanced standardized operations and supported the Company's healthy and
sustainable development. Throughout the reporting period the Company's internal control systems
were effectively executed with no material deficiencies in internal control identified. The expected
50Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
internal control objectives were met safeguarding the interests of the Company and all shareholders.Based on the identification of significant deficiencies in the Company's internal control as of the
base date of the Internal Control Evaluation Report the Company had no significant deficiencies in
internal control over financial and non-financial reporting in 2024. The Company has maintained
effective internal control in all material aspects in accordance with the requirements of its internal
control standard system and relevant regulations.
2. Details about material deficiencies in internal control during the reporting period
□Yes□ No
XIII. Management Control over the Subsidiaries during the Reporting Period
Problems
Integration Integration Progress of Follow-up
Company name encountered in Solution taken
plan progress resolution resolution plan
integration
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal Control Evaluation Report or Auditor's Report on Internal Control
1. Internal control evaluation report
Disclosure date of the internal
March 28 2025
control evaluation report
Disclosure index of the internal For details please refer to the 2024 Annual Internal Control Self-evaluation Report
control evaluation report disclosed by the Company on CNINFO (http://www.cninfo.com.cn)
Proportion of total unit assets
included in the evaluation scope to
100.00%
total assets from the Company's
consolidated financial statements
Proportion of unit operating
revenue included in the evaluation
scope to operating revenue from 100.00%
the Company's consolidated
financial statements
Deficiency identification standards
Type Financial reports Non-financial reports
1. Material deficiencies: A deficiency or a 1. Material deficiencies: A deficiency
combination of deficiencies that results in the shall be deemed material if any of the
inability to promptly prevent detect or correct following circumstances apply: (1)
material misstatements in financial reports. The Major decisions are made in violation of
following circumstances shall be identified as the Company's prescribed procedures
Qualitative standards material deficiencies in internal control: (1) resulting in significant losses to the
Management fraud resulting in material Company; (2) Serious violations of laws
misstatements in financial results or the issuance or regulations that cause significant
of false financial reports thereby misleading losses to the Company; (3) Lack of
users of financial statements causing decision- institutional control over key business
making errors and leading to litigation; (2) operations or systematic failure of
51Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ineffectiveness of the control environment; (3) internal control systems; (4) Severe loss
Failure to rectify significant internal control of core management personnel or key
deficiencies reported to management within a technicians; (5) Failure to rectify
reasonable period; (4) Failure to follow material deficiencies identified in
appropriate decision-making procedures for internal control evaluations; (6) Failure
major corporate matters resulting in significant of internal control over information
losses to the Company; (5) Lack of effective disclosure resulting in public censure
control over key business activities related to the by regulatory authorities.Company's production and operations; (6) Other 2. Significant deficiencies: A deficiency
deficiencies that seriously mislead users of shall be deemed significant if it has any
financial statements resulting in significant of the following characteristics: (1)
compensation for the Company. Violation of internal corporate
2. Significant deficiencies: A deficiency or a regulations resulting in substantial
combination of deficiencies that results in the losses; (2) Significant loss of personnel
inability to promptly prevent detect or correct in key business positions; (3)
misstatements in financial reports. Although Deficiencies in the Company's critical
these misstatements do not reach or exceed the business systems or procedures; (4)
materiality threshold they should still draw the Failure to rectify significant deficiencies
attention of management. The following identified in the Company's internal
circumstances shall be identified as significant control.deficiencies in internal control: (1) Failure to 3. General deficiency refers to other
select and apply accounting policies in deficiencies in control other than the
accordance with generally accepted accounting above-mentioned material deficiency
principles; (2) Failure to establish anti-fraud and significant deficiency.procedures and control measures; (3) Absence
or lack of implementation of appropriate control
mechanisms for the accounting treatment of
non-routine or special transactions and no
corresponding compensation controls in place;
(4) One or more deficiencies in the control over
the period-end financial reporting process that
do not provide reasonable assurance that the
financial statements are prepared truthfully and
accurately.
3. General deficiency refers to other deficiencies
in control other than the above-mentioned
material deficiency and significant deficiency.
1. Material deficiencies: the amount of
loss > 1.5% of the equity of the owner
1. Material deficiencies: misstatement > 10% of
of the parent company and the absolute
the total profit and the absolute amount > RMB
amount > RMB 10 million;
10 million;
2. Significant deficiencies: 0.5% of
2. Significant deficiencies: 5% of the total profit
equity of the owner of the parent
< misstatement ≤ 10% of the total profit and the
company < loss amount ≤ 1.5% of
Quantitative standards absolute amount > RMB 5 million; or RMB 5
equity of the owner of the parent
million < absolute amount ≤ RMB 10 million
company or RMB 5 million < absolute
and the misstatement amount > 5% of the total
amount ≤ RMB 10 million;
profit; 3. General deficiencies: misstatement ≤
3. General deficiencies: the amount of
5% of the total profit or the absolute amount ≤
loss ≤ 0.5% of equity of the owner of
RMB 5 million.the parent company or the absolute
amount ≤ RMB 5 million.Number of material deficiencies in
0
the financial report (Nr.)
Number of material deficiencies in
0
the non-financial report (Nr.)
Number of significant deficiencies
0
in the financial report (Nr.)
52Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Number of significant deficiencies
0
in the non-financial report (Nr.)
2. Auditor's report on internal control
□Applicable □ Not applicable
Review opinion paragraph in auditor's report on internal control
In our opinion the Company maintained in all material respects effective internal control over financial reporting as at December
31 2024 in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations.
Disclosure of auditor's report on internal control Disclosure
Disclosure date of auditor's report on internal control March 28 2025
Disclosure index of auditor's report on internal control CNINFO (http://www.cninfo.com.cn)
Type of opinion in auditor's report on internal control Standard unqualified opinion
Whether there are material deficiencies in the non-financial
No
report
Whether the accounting firm issues a non-standard opinion in the auditor's report on internal control
□Yes□ No
Whether the auditor's report on internal control issued by the accounting firm is consistent with the self-evaluation report of the
Board of Directors
□Yes □ No
XV. Rectification of Problems Identified in the Self-inspection over the Listed Company's
Special Governance Measures
N/A
53Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section V Environmental and Social Responsibility
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
□Yes□ No
Administrative punishment imposed for environmental problems during the reporting period
Impact on the production and Rectification
Name of company or Reason for
Violation Penalty operation of the listed measures of the
subsidiary punishment
company company
None None None None None None
Refer to other environmental information disclosed by key pollutant discharge units: The
Company and its subsidiaries were not subject to administrative penalties due to environmental
problems during the reporting period.Measures to reduce carbon emissions during the reporting period and effects
□ Applicable□ Not applicable
Reasons for failure to disclose other environmental information
The Company and its subsidiaries are not key pollutant discharge units announced by the
environmental protection department and there was no punishment due to violations of laws and
regulations during the reporting period.II. Social Responsibilities
The Company prioritized employee health by organizing the 2024 annual physical
examination program; implemented labor union welfare support by visiting and offering care to
over 20 employees; carried out a variety of labor union activities; and managed the allocation of
talent housing and public rental housing helping young employees settle down.III. Details on Consolidating and Expanding Its Achievements in Poverty Alleviation and
Rural Revitalization
The Company's Party Committee actively responded to the higher-level Party organization's
arrangements for implementing the national rural revitalization strategy. In 2024 the Company
allocated over RMB 100000 to purchase poverty alleviation products. Additionally from 2021 to
August 2024 the Company dispatched one Party member to Shangyan Village Chengtian Town
Shantou City to support rural revitalization efforts with a service period exceeding three years.
54Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VI Important Matters
I. Performance of Commitments
1. Commitments that have been fulfilled during the reporting period and have not yet been fulfilled as at
the end of the reporting period by the Company's actual controller shareholders related parties
acquirers the Company and other commitment related parties
□Applicable □ Not applicable
Com
Com
Commi mitm Perfo
Commitm Commitm mitme
tment Commitment content ent rman
ent cause ent type nt
party perio ce
time
d
The Company will maintain the independence of the listed
company and maintain personnel independence institutional
Shenzh independence financial independence and asset integrity with
en Ensure the the listed company. The listed company will still have
Invest independe independent operation ability independent procurement
ment nce of production and sales system and independent intellectual
Holdin listed property rights.gs Co. companies In case of violation of the above commitments the Company
Ltd. will bear corresponding legal responsibilities including but not
limited to compensation for all losses caused to the listed
company.
1. As of the signing date of this Letter of Commitment the
Durin
Company and other enterprises controlled by the Company have
g the
not engaged in business and activities that are in direct
perio
competition with or may constitute direct competition with
d of
Tellus and will not engage in business and activities that are in
Commitm being
direct competition with or may constitute direct competition
ent made an
with Tellus in the future (except those arranged based on
in Dece indire In
Shenzhen SASAC or similar government agencies);
acquisition mber ct perfo
2. During the period of being the indirect controlling
report or 30 contr rman
shareholder of Tellus and during Tellus' listing on the Shenzhen
report of Shenzh 2022 olling ce
Stock Exchange the Company will fully respect the
equity en share
Avoid independent operation autonomy of all subsidiaries controlled
change Invest holde
horizontal by the Company and ensure that the legitimate rights and
ment r of
competitio interests of Tellus and its minority shareholders will not be
Holdin the
n infringed;
gs Co. Com
3. The Company promises not to seek illegitimate interests with
Ltd. pany
the status of controlling shareholder of Tellus thus damaging
the rights and interests of Tellus and its minority shareholders;
4. The Company promises not to assist any party to engage in
any business activities that are in substantial competition or
potential competition with the main business of Tellus by using
the information learned or known from Tellus;
5. If the Company or other enterprises controlled by the
Company violate the above commitments and guarantees the
Company shall bear the economic losses caused to the listed
company.Shenzh Reduce 1. The Company and the companies enterprises and economic
en and organizations controlled or actually controlled by the Company
55Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Invest standardiz (excluding enterprises controlled by listed companies
ment e related hereinafter collectively referred to as "affiliated companies")
Holdin party will exercise the rights of shareholders fulfill the obligations of
gs Co. transaction shareholders and maintain the independence of listed
Ltd. s companies in terms of assets finance personnel business and
institutions in strict accordance with the provisions of laws
regulations and other normative documents;
2. The Company promises not to use its position as a controlling
shareholder to urge the General Meeting of Shareholders or the
Board of Directors of the listed company to make resolutions
that infringe upon the legitimate rights and interests of other
shareholders of the listed company;
3. The Company or its affiliated companies will try to avoid
related party transactions with listed companies. If it is
inevitable to have related party transactions with listed
companies the Company or its affiliated companies will urge
the controlled entities to trade with listed companies on an equal
and voluntary basis per fair reasonable and normal commercial
transaction conditions;
4. The Company or its affiliated companies will perform the
decision-making procedures of related party transactions and the
corresponding information disclosure obligations in strict
accordance with the Articles of Association of the listed
company and relevant laws and regulations;
5. The Company or its affiliated companies will ensure that they
will not seek special interests beyond the above provisions
through related party transactions with the listed company
illegally transfer the funds and profits of the listed company
through related party transactions and maliciously damage the
legitimate rights and interests of the listed company and its
shareholders through related party transactions. In case of
violation of the above commitments the Company will bear
corresponding legal responsibilities including but not limited to
compensation for all losses caused to the listed company.Commitm
ent made Shenzh
during the en In
In the future the Company will disclose relevant information Octob
initial Tellus Long perfo
Others regarding the progress of its new business in a timely accurate er 17
public Holdin -term rman
and sufficient manner per relevant requirements. 2014
offering or g Co. ce
refinancin Ltd.g
Shenzhen Special Economic Zone Development Group Co.Ltd. the controlling shareholder of the Company issued the
Shenzh Letter of Commitment to Avoiding Horizontal Competition on
en May 26 2014. The commitments are as follows:
Other
Special 1. The Company and other enterprises controlled by the
commitme
Econo Company other than Tellus Holding are not engaged in business
nts made In
mic Horizontal that is in substantial competition with the main business of May
for Long perfo
Zone competitio Tellus Holding and there is no horizontal competition 26
minority -term rman
Develo n relationship with Tellus Holding; 2014
shareholde ce
pment 2. The Company and its controlled enterprises will not in any
rs of the
Group form directly or indirectly engage in or participate in business
Company
Co. that competes or may compete with the main business of Tellus
Ltd. Holding; 3. If the Company and other enterprises controlled by
the Company can engage in or participate in any business
opportunity that may compete with the main business of Tellus
56Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Holding they shall notify Tellus Holding of the above business
opportunity before implementing or signing relevant
agreements. If Tellus Holding makes a positive reply within a
reasonable period specified in the notice that it is willing to take
advantage of the business opportunity the business opportunity
will be first offered to Tellus Holding.From 2023 to 2025 the Company's profits will be first used to
cover the losses of previous years; After making up for the
Shenzh
losses of previous years on the premise that the Company's
en Dece In
Other Dividend profits and cash flow meet the normal operation and long-term April
Tellus mber perfo
commitme commitme development of the Company the Company will implement an 27
Holdin 31 rman
nts nt active profit distribution method to reward shareholders. For 2023
g Co. 2025 ce
details please refer to the Shareholder Return Plan for the Next
Ltd.Three Years (2023-2025) disclosed on www.cninfo.com.cn on
April 27 2023.Whether
the
commitme
nts are Yes
duly
performed
Explanatio
n of the
situation
where
commitme N/A
nts are not
fulfilled
within the
deadline
2. If the profit forecast can be carried out for the Company's assets or projects and the reporting period
is within the period of profit forecast the Company shall explain whether the assets and projects can
realize the original profit forecast and specify the reasons
□ Applicable□ Not applicable
II. Controlling Shareholder and Other Related Parties' Occupation of Non-operating Funds
of the Listed Company
□ Applicable□ Not applicable
Non-operating fund occupied by the controlling shareholder and other related parties towards
the listed company is not identified within the reporting period of the Company.III. Illegal External Guarantees
□ Applicable□ Not applicable
During the reporting period the Company had no illegal external guarantees.
57Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
IV. Description of the Board of Directors on the Latest "Non-Standard Auditor's Report"
□ Applicable□ Not applicable
V. Description of the Board of Directors Board of Supervisors and Independent Directors
(If Any) on the "Non-Standard Auditor's Report" Issued by the Accounting Firm during
the Reporting Period
□ Applicable□ Not applicable
VI. Description of the Changes in Accounting Policies and Accounting Estimates or
Correction of Major Accounting Errors as Compared with Those in the Financial Report
for the Previous Year
□Applicable □ Not applicable
1. Changes in significant accounting policies
Refer to Note V. 28 of section 10 for changes in significant Accounting Policies .
2.Changes in material accounting estimates
In response to the Company's business development and fixed asset management needs and to fairly reflect
its financial position and operating results the Company has changed its accounting estimates for the depreciation
period of fixed assets to better align with their actual service life.Before this change in accounting estimates the depreciation period of fixed assets is:
Category Service life (year) Residual value rate Annual depreciation rate(%) (%)
Premises and buildings 10 35-40 03 10 2.43-2.77
Including: Decoration of self-owned houses 10 0 10
Machinery equipment 12 3 8.08
Electronic equipment 5-7 3 13.86-19.4
Transportation equipment 7 3 13.86
Office and other equipment 7 3 13.86
After this change in accounting estimates the depreciation period of fixed assets is:
Category Service life (year) Residual value rate (%) Annual depreciation rate(%)
Premises and buildings 10 35-40 03 10 2.43-2.77
Including: Decoration of
self-owned houses 10 0 10
Machinery equipment 10 3 9.70
Electronic equipment 3 3 32.33
Transportation equipment 7 3 13.86
Office and other equipment 5 3 19.40
58Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
VII. Explanation on Change of Scope of Consolidated Financial Statements Compared with
the Financial Statement of the Previous Year
□Applicable □ Not applicable
On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate
the liquidation and resume operations. The Company submitted an application to the Shenzhen
Qianhai Cooperation Zone People's Court for withdrawal of the compulsory liquidation application
for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023] Y0391QQ
No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the
withdrawal of the compulsory liquidation application for SDG Huari. Consequently the Company
included SDG Huari in its consolidated financial statements as of December 27 2024.VIII. Employment and Dismissal of Accounting Firm
Current employed accounting firm
Grant Thornton Certified Public Accountants (Special General
Name of domestic accounting firm
Partnership)
Salary of domestic accounting firm (RMB 10000) 75
Duration of audit service provided by domestic accounting firm 2
Names of CPAs of domestic accounting firm Wu Liang Xiao Na
Duration of audit service provided by CPA of domestic
2 years for Wu Liang and 1 year for Xiao Na
accounting firm
Whether the employment of the accounting firm will be changed during the current period
□Yes□ No
Employment of accounting firm financial consultant or sponsor for internal control audit
□Applicable □ Not applicable
The Company employed Grant Thornton Certified Public Accountants (Special General
Partnership) as its 2024 annual financial and internal control audit firm. The employment term was
one year and the internal control audit fee was RMB 250000.IX. Delisting after Disclosure of Annual Report
□ Applicable□ Not applicable
X. Matters Relating to Bankruptcy Reorganization
□ Applicable□ Not applicable
Matters concerning bankruptcy reorganization were not identified within the reporting period of the
Company.
59Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
XI. Major Litigation and Arbitration Matters
□Applicable □ Not applicable
Whethe
Execution
r Progress Disc
Amount of
estimat of Discl losur
Basic information of involved Litigation (arbitration) trial litigation
ed litigation osure e
litigation (arbitration) (RMB results and impacts (arbitratio
liabiliti (arbitration date inde
10000) n)
es are ) x
judgment
formed
Dispute over land lease The second trial has been held
contract (Automobile but no verdict has been issued.Industry and Trade 1403.76 No In progress It has no major effects on the -
Company as the Company's production and
plaintiff) operation.Project construction
contract dispute The second trial was held on
(Zhongtian Company as December 23 but no verdict has
the defendant in the 670.44 No In progress been issued. It has no major -
original claim and the effects on the Company's
plaintiff in the production and operation.counterclaim)
On November 19 2024 the
Dispute over
Company received a court
endowment insurance
ruling dismissing the plaintiff's
treatment (Automobile 156.97 No Closed None
lawsuit. It has no major effects
Industry and Trade
on the Company's production
Company as defendant)
and operation.The Company has filed an
appeal and the second trial has
Unjust enrichment
been held but no verdict has
dispute (the Company as 175.94 No In progress -
been issued. It has no major
the plaintiff)
effects on the Company's
production and operation.XII. Punishment and Rectification
□ Applicable□ Not applicable
No punishment or rectification was identified within the reporting period of the Company.XIII. Integrity Situation of the Company and its Controlling Shareholder and Actual
Controller
□ Applicable□ Not applicable
XIV. Major Related Party Transactions
1. Related party transactions concerning daily operations
□Applicable □ Not applicable
Related Rela Type Cont Prici Price Amou Propo Appro Excee Settle Marke Disclo Disclos
transaction ted- of ent ng of nt of rtion ved d the ment t price sure ure
60Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
party part relate of princ relate relate to transa appro metho of date index
y d relat iple d d transa ction ved ds of availa
relat party ed of party party ction amou amou relate ble
ions trans party relat transa transa amou nt nt or d simila
hip actio trans ed ction ction nt of (RMB not party r
n actio party (RMB the 1000 transa transa
n trans 1000 same 0) ction ction
actio 0) kind
n
A
Dire
ctor
of Accor
Provi
the Daily ding
Shenzhen de
Com relate to the
Renfu prop Mar
pany d contra
Tellus erty ket 545.0 545.0 545.0
conc party 1.92% 545 No ct
Automobil leasi prici 0 0 0
urre trans amou
es Service ng ng
ntly actio nt or
Co. Ltd. servi
serv ns agree
ces
es as ment
its
Dire
ctor Announ
Subs Accor
Provi cement
Shenzhen idiar Daily ding
de on
SDG y of relate to the
prop Mar Daily
Tellus cont d contra
erty ket Related
Property rolli party 17.20 17.20 0.06% 18 No ct 17.20
leasi prici Party
Manageme ng trans amou
ng ng Transac
nt Co. shar actio nt or
servi tions in
Ltd. ehol ns agree
ces 2024
der ment March (Annou
28
Provi ncemen
2024
de t No.:
Subs Accor
prop 2024-
idiar Daily ding
erty 009) of
Shenzhen y of relate to the
leasi Mar Securiti
SDG cont d contra
ng ket 132.7 132.7 132.7 es
Microfinan rolli party 0.47% 503 No ct
and prici 9 9 9 Times
ce Co. ng trans amou
mana ng and
Ltd. shar actio nt or
geme CNINF
ehol ns agree
nt O
der ment
servi
ces
Provi
Subs de Accor
idiar Daily prop ding
Shenzhen
y of relate erty to the
SDG Mar
cont d leasi contra
Service ket 426.7 426.7 426.7
rolli party ng 1.50% 542 No ct
Co. Ltd. prici 5 5 5
ng trans and amou
and its ng
shar actio parki nt or
branches
ehol ns ng agree
der servi ment
ces
Shenzhen A Daily Provi Mar 30.00 30.00 100.0 30 No Accor 30.00
61Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Telixing Dire relate de ket 0% ding
Investment ctor d brok prici to the
Co. Ltd. of party erage ng contra
the trans and ct
Com actio agen amou
pany ns cy nt or
conc servi agree
urre ces ment
ntly
serv
es as
its
Dire
ctor
Acce
Subs Accor
pt
Shenzhen idiar Daily ding
engi
SDG y of relate to the
neeri Mar
Engineerin cont d contra
ng ket 100.0
g rolli party 84.71 84.71 140 No ct 84.71
super prici 0%
Manageme ng trans amou
visio ng
nt Co. shar actio nt or
n
Ltd. ehol ns agree
servi
der ment
ces
Acce
pt
Subs Accor
prop
idiar Daily ding
Shenzhen erty
y of relate to the
SDG mana Mar
cont d contra
Service geme ket 2167. 2167. 86.88 2167.rolli party 4022 No ct
Co. Ltd. nt prici 25 25 % 25
ng trans amou
and its and ng
shar actio nt or
branches secur
ehol ns agree
ity
der ment
servi
ces
Subs Acce Accor
idiar Daily pt ding
Shenzhen y of relate prop to the
Mar
SDG cont d erty contra
ket
Eastern rolli party mana 11.88 11.88 0.48% 0 Yes ct 11.88
prici
Service ng trans geme amou
ng
Co. Ltd. shar actio nt nt or
ehol ns servi agree
der ces ment
Subs Acce Accor
idiar Daily pt ding
Shenzhen y of relate prop to the
Mar
SDG cont d erty contra
ket
Building rolli party mana 21.60 21.60 0.87% 0 Yes ct 21.60
prici
Technolog ng trans geme amou
ng
y Co. Ltd. shar actio nt nt or
ehol ns servi agree
der ces ment
Shenzhen Subs Daily Acce Mar Accor
SDG idiar relate pt ket 198.5 198.5 ding 198.5
7.96% 198 No
Tellus y of d prop prici 8 8 to the 8
Property cont party erty ng contra
62Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Manageme rolli trans mana ct
nt Co. ng actio geme amou
Ltd. shar ns nt nt or
ehol servi agree
der ces ment
Ente
rpris
e
Accor
cont
Daily ding
rolle Acce
Guoren relate to the
d by pt Mar
Property & d contra
indir insur ket 68.20
Casualty party 54.44 54.44 80 No ct 54.44
ect ance prici %
Insurance trans amou
cont servi ng
Co. Ltd. actio nt or
rolli ces
ns agree
ng
ment
shar
ehol
ders
Subs Accor
idiar Daily ding
Acce
ISSTech y of relate to the
pt Mar
Informatio cont d contra
techn ket
n rolli party 0 0 152 No ct 0
ical prici
Technolog ng trans amou
servi ng
y Co. Ltd. shar actio nt or
ces
ehol ns agree
der ment
3690.
Total -- -- -- 6230 -- -- -- -- --
2
Details of large-sum sales return None
The actual performance during the
reporting period (if any) if the total
amount of daily related party Normal performance
transactions occurring in the current
period is estimated by category
Reasons for the great difference
between the transaction price and
N/A
market reference price (if
applicable)
2. Related party transactions from acquisition and sale of assets or equity
□ Applicable□ Not applicable
During the reporting period the Company had no related party transaction from the acquisition and sale of assets or equity.
3. Related party transaction of joint outbound investment
□ Applicable□ Not applicable
During the reporting period the Company had no related party transaction of joint outbound investment.
4. Transaction related to credit and debt
□Applicable □ Not applicable
63Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Whether there are transactions of non-operating related credits and debts
□Yes□ No
During the reporting period the Company had no transactions related to credit and debt.
5. Transactions with related finance companies
□ Applicable□ Not applicable
There is no deposit loan credit or other financial business between the Company and related finance companies and related
parties.
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable□ Not applicable
There is no deposit loan credit or other financial business between the finance companies controlled by the Company and related
parties.
7. Other major related party transactions
□ Applicable□ Not applicable
During the reporting period the Company had no other major related party transactions.XV. Major Contracts and Performance
1. Trusteeship contracting and leasing matters
(1) Trusteeship
□ Applicable□ Not applicable
During the reporting period the Company had no trusteeship.
(2) Contracting
□ Applicable□ Not applicable
During the reporting period the Company had no contracting.
(3) Leasing
□ Applicable□ Not applicable
During the reporting period the Company has no leasing.
2. Significant guarantees
□Applicable □ Not applicable
Unit: RMB 10000
External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries)
Name of Disclosure Guara Actual Actual Type Collater Counter- Guarantee Whet Wheth
guaranteed date of the ntee date of guarant of al (if guarantee period her it er it is
64Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
party relevant amoun occurre ee guara any) (if any) is provid
announceme t nce amount ntee fulfil ed to
nt of the led related
guarantee parties
amount
Until the
Shenzhen
expiry
Renfu Tellus
September Pledg date of the
Automobiles 3500 0 No No No Yes
30 2014 e Joint
Service Co.Venture
Ltd.Contract
Total actual
external
Total external guarantee
guarantee
amount approved during the 0 0
amount during
reporting period (A1)
the reporting
period (A2)
Total actual
external
Total external guarantee
guarantee
amount approved at the end 3500 0
balance at the
of the reporting period (A3)
end of reporting
period (A4)
The Company's guarantee to subsidiaries
Disclosure
Wheth
date of the Whet
Guara Actual Actual Type er it is
Name of relevant Collater Counter- her it
ntee date of guarant of Guarantee provid
guaranteed announceme al (if guarantee is
amoun occurre ee guara period ed to
party nt of the any) (if any) fulfil
t nce amount ntee related
guarantee led
parties
amount
Guarantee between subsidiaries
Disclosure
Wheth
date of the Whet
Guara Actual Actual Type er it is
Name of relevant Collater Counter- her it
ntee date of guarant of Guarantee provid
guaranteed announceme al (if guarantee is
amoun occurre ee guara period ed to
party nt of the any) (if any) fulfil
t nce amount ntee related
guarantee led
parties
amount
Total amount of the Company's guarantee (i.e. total of the first three items)
Total actual
Total guarantee amount guarantee
approved during the amount during
00
reporting period (A1 + B1 + the reporting
C1) period (A2 + B2
+ C2)
Total actual
Total guarantee amount guarantee
approved at the end of the balance at the
35000
reporting period (A3 + B3 + end of the
C3) reporting period
(A4 + B4 + C4)
Proportion of total actual guarantee amount (i.e.
0.00%
A4 + B4 + C4) to the Company's net assets
65Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Including:
3. Management of cash assets by other entrusted parties
(1) Entrusted financial management
□Applicable □ Not applicable
Overview of entrusted financial management during the reporting period
Unit: RMB 10000
The amount of
impairment
accrued for
Capital source of Amount of
Unexpired Overdue overdue
Category entrusted financial entrusted financial
balance unrecovered amount unrecovered
management management
financial
management
products
Bank financial
Owned funds 113130 58130 0 0
products
Total 113130 58130 0 0
Details of high-risk entrusted financial management with large individual amount or low security and poor liquidity
□ Applicable□ Not applicable
Principal unable to be recovered or other conditions causing impairment for entrusted financial management
□ Applicable□ Not applicable
(2) Entrusted loan
□ Applicable□ Not applicable
During the reporting period the Company had no entrusted loans.
4. Other major contracts
□ Applicable□ Not applicable
During the reporting period the Company has no major contracts.XVI. Clarification on Other Major Matters
□ Applicable□ Not applicable
The Company had no other major matters that needed to be stated during the reporting period.XVII. Major Matters of the Company's Subsidiaries
□Applicable □ Not applicable
Both shareholders of SDG Huari reached a consensus and amended the Articles of Association
to change SDG Huari's business term to "perpetual operation". On the same day the Company
submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court to withdraw its
66Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
application for the compulsory liquidation of SDG Huari. The Company subsequently received a
Civil Ruling ([2023] Y0391QQ No. 4 from the court which ruled to approve the Company’s
application for withdrawal. For details please refer to the Announcement on the Progress of
Compulsory Liquidation of Holding Subsidiary (Announcement No.: 2024-036) published by the
Company on December 10 2024 and the Announcement on the Progress of Compulsory
Liquidation of Holding Subsidiary (Announcement No.: 2024-038) published on December 31
2024.
67Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase (+)/decrease (-) in this change After the change
Bonu Conversion
Issuance
Proporti s of capital Subt Proporti
Quantity of new Others Quantity
on share reserve into otal on
shares
s share capital
I. Restricted
00.00%0000000.00%
shares
1. State
00.00%0000000.00%
shareholding
2. State-
owned legal
00.00%0000000.00%
person
shareholding
3. Other
domestic 0 0.00% 0 0 0 0 0 0 0.00%
shareholding
Including
: shares held
00.00%0000000.00%
by domestic
legal person
Domestic
natural person 0 0.00% 0 0 0 0 0 0 0.00%
shareholding
4. Foreign
00.00%0000000.00%
shareholding
Including
: Foreign legal
00.00%0000000.00%
person
shareholding
Foreign
natural person 0 0.00% 0 0 0 0 0 0 0.00%
shareholding
II.Unrestricted 431058320 100.00% 0 0 0 0 0 431058320 100.00%
shares
1. RMB-
denominated
39277832091.12%0000039277832091.12%
ordinary
shares
2. Domestic
listed foreign 38280000 8.88% 0 0 0 0 0 38280000 8.88%
shares
68Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3. Foreign
listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total
amount of 431058320 100.00% 0 0 0 0 0 431058320 100.00%
shares
Reasons for changes in shares
□ Applicable□ Not applicable
Status of authorization for changes in shares
□ Applicable□ Not applicable
Status of transfer for changes in shares
□ Applicable□ Not applicable
Effect of changes in shares on the financial indicators including basic earnings per share and diluted earnings per share in the most
recent year and in the most recent period as well as net asset per share attributable to the Company's shareholders of ordinary
shares
□ Applicable□ Not applicable
Other information disclosed as the Company deems necessary or required by securities regulatory authorities
□ Applicable□ Not applicable
2. Changes in shares with restrictions on sale
□ Applicable□ Not applicable
II. Conditions on Issuance and Listing of Securities
1. Conditions on issuance of securities (excluding preferred shares) during the reporting period
□ Applicable□ Not applicable
2. Description of total number of shares of the Company changes in shareholder structure and changes
in the Company's asset and liability structure
□ Applicable□ Not applicable
3. Shares of existing internal staff
□ Applicable□ Not applicable
III. Shareholders and Actual Controller
1. Number of shareholders and shareholdings of the Company
Unit: share
Total number of ordinary Total Total Total number of
shareholders as at the end 50749 number 50093 number of 0 preferred shareholders 0
of the reporting period of preferred with restored voting
69Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
ordinary shareholde rights as at the end of
sharehold rs with the previous month
ers as at restored before the disclosure
the end of voting date of the annual report
the rights as at
previous the end of
month the
before the reporting
disclosur period
e date of
the
annual
report
Shareholders holding more than 5% shares or shareholding of top 10 shareholders (excluding shares lent through refinancing)
Number of Pledged
Increase/de Numbe
Sharehol shares held marked or
Nature of crease r of Number of
ding at the end frozen shares
Name of shareholder shareholde during the restricte unrestricted
proportio of the
r reporting d shares shares held Status Qu
n reporting
period held of ant
period shares ity
Shenzhen Special State-
Economic Zone owned 21159162
49.09% 1200000 0 211591621 N/A 0
Development Group Co. legal 1
Ltd. person
Domestic
Shenzhen Capital Fortune
non-state-
Jewelry Industry
owned 5.08% 21919153 0 0 21919153 N/A 0
Investment Enterprise
legal
(Limited Partnership)
person
Domestic
Li Xiaoming natural 0.71% 3069500 0 0 3069500 N/A 0
person
Overseas
Hong Kong Securities
legal 0.60% 2577239 396580 0 2577239 N/A 0
Clearing Company Limited
person
GUOTAI JUNAN Overseas
SECURITIES (HONG legal 0.41% 1783491 42000 0 1783491 N/A 0
KONG) LIMITED person
China Merchants Bank Co.Ltd.—China Southern CSI Others 0.38% 1627070 1383770 0 1627070 N/A 0
1000 ETF
Industrial and Commercial
Bank of China Limited—
Others 0.36% 1532475 13800 0 1532475 N/A 0
China Southern CSI All
Share Real Estate ETF
Domestic
Ma Yongcheng natural 0.26% 1139180 499880 0 1139180 N/A 0
person
Overseas
Wang Hua natural 0.22% 965000 965000 0 965000 N/A 0
person
China Merchants Bank Co.Ltd.—ChinaAMC CSI Others 0.20% 872880 655800 0 872880 N/A 0
1000 ETF
Status of the strategic investor or general legal person None
becoming one of top 10 shareholders due to rights issue
70Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(if any) (see Note 3)
Among the top 10 shareholders Shenzhen Special Economic Zone
Development Group Co. Ltd. was not related to other shareholders and
Explanations of the related relationship or concerted was not a person acting in concert as stipulated in the Measures for the
action of the above shareholders Administration of the Takeover of Listed Companies. It was unknown
whether other shareholders of tradable shares were persons acting in
concert.Description of the above-mentioned shareholders'
involvement in entrusting/being entrusted with the N/A
right to vote and giving up the right
Special description of repurchase special account
None
among the top 10 shareholders (if any) (see Note 10)
Shareholdings of top 10 shareholders without restrictions on sale (excluding shares lent through refinancing and locked shares of
senior executives)
Number of unrestricted shares Share type
Name of shareholder held as at the end of reporting
period Share type Quantity
Ordinary shares
Shenzhen Special Economic Zone Development Group
211591621 denominated in 211591621
Co. Ltd.RMB
Ordinary shares
Shenzhen Capital Fortune Jewelry Industry Investment
21919153 denominated in 21919153
Enterprise (Limited Partnership)
RMB
Ordinary shares
Li Xiaoming 3069500 denominated in 3069500
RMB
Ordinary shares
Hong Kong Securities Clearing Company Limited 2577239 denominated in 2577239
RMB
GUOTAI JUNAN SECURITIES (HONG KONG) Domestic listed
17834911783491
LIMITED foreign shares
Ordinary shares
China Merchants Bank Co. Ltd.—China Southern CSI
1627070 denominated in 1627070
1000 ETF
RMB
Ordinary shares
Industrial and Commercial Bank of China Limited—
1532475 denominated in 1532475
China Southern CSI All Share Real Estate ETF
RMB
Ordinary shares
Ma Yongcheng 1139180 denominated in 1139180
RMB
Domestic listed
Wang Hua 965000 965000
foreign shares
Ordinary shares
China Merchants Bank Co. Ltd.—ChinaAMC CSI
872880 denominated in 872880
1000 ETF
RMB
Description on the related relationship or
Among the top 10 shareholders Shenzhen Special Economic Zone Development
concerted action among top 10
Group Co. Ltd. a state-owned legal-person shareholder was not related to other
shareholders of unrestricted tradable
shareholders and was not a person acting in concert as stipulated in theMeasures for
shares and between top 10 shareholders of
the Administration of the Takeover of Listed Companies. It was unknown whether
unrestricted tradable shares and top 10
other shareholders of tradable shares were persons acting in concert.shareholders
Description of participation of the top 10 1. Due to the refinancing business carried out by Shenzhen Special Economic Zone
shareholders of ordinary shares in Development Group Co. Ltd. the controlling shareholder of the Company the
securities margin trading (if any) (see number of shares held at the end of this reporting period increased by 1200000
Note 4) shares compared with that at the end of 2023. The increase in the number of shares
71Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
held is due to the recovery of lent shares.
2. The shareholder China Merchants Bank Co. Ltd.—China Southern CSI 1000
ETF Fund carried out the refinancing business. At the end of this reporting period
the number of shares held increased by 1383770 shares compared with that at the
end of 2023 of which 54600 shares were increased due to the recovery of lent
shares.
3. The shareholder China Merchants Bank Co. Ltd.—ChinaAMC CSI 1000 ETF
carried out the refinancing business. At the end of this reporting period the number
of shares held increased by 665800 shares compared with that at the end of 2023 of
which 28800 shares were increased due to the recovery of lent shares.
4. The shareholder Ma Yongcheng held 1139180 shares of the Company through
guaranteed credit accounts and 0 shares of the Company through ordinary securities
accounts holding a total of 1139180 shares.The situation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited
tradable shares participating in the loan of shares in the refinancing business
□Applicable □ Not applicable
Unit: share
The situation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited
tradable shares participating in the loan of shares in the refinancing business
Shares lent through
Shares lent through
Ordinary account and credit Ordinary account and credit refinancing at the
refinancing at the
account shareholding at the account shareholding at the end of the period
beginning of the period
Name of beginning of the period end of the period and not yetand not yet returned
shareholder (full returned
name) Proportion Proportio Proportion Proportion
Total
in total Total n in total in total in total
Total quantity Total quantity quant
share quantity share share share
ity
capital capital capital capital
Shenzhen Special
Economic Zone
21039162148.81%12000000.28%21159162149.09%00.00%
Development
Group Co. Ltd.China Merchants
Bank Co. Ltd.—
2433000.06%546000.01%16270700.38%00.00%
China Southern
CSI 1000 ETF
China Merchants
Bank Co. Ltd.—
2170800.05%288000.01%8728800.20%00.00%
ChinaAMC CSI
1000 ETF
Changes from the previous period caused by the top 10 shareholders and the top 10 shareholders of unlimited tradable shares due
to refinancing-based lending/returning
□ Applicable□ Not applicable
Whether the Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions
on sale performed the agreed repurchase transactions during the reporting period
□Yes□ No
The Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions on sale
did not perform the agreed repurchase transactions during the reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: local state-owned holding
72Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Type of controlling shareholder: legal person
Legal
Name of
representative Date of
controlling Organization code Main business
/person in establishment
shareholder
charge
Investment in the development of industries
(specific projects will be declared separately);
investment in the development of the tourism
Shenzhen industry; real estate development and
Special operation; domestic trade and material supply
Economic Zone Zhang Junlin June 20 1982 91440300192194195C and marketing (excluding monopoly exclusive
Development control and monopolized commodities);
Group Co. Ltd. economic information consultation (excluding
restricted items); operation of import and
export business (subject to approval by the
Industrial and Commercial Bureau).Equity of other At the end of the reporting period in addition to holding the equity of the Company SDG Group also held
domestic and equity of other listed companies as follows:
foreign listed 1. Holding 36.18% equity of Shenzhen SDG Information Co. Ltd. (stock abbreviation: SDG Information) and
companies controlling 1.10% equity of Shenzhen SDG Information Co. Ltd. through Hanseco Sanho Co. Ltd.;
controlled and 2. Holding 47.78% equity of Shenzhen SDG Service Co. Ltd. (stock abbreviation: SDG Service) and holding
participated by 0.98% equity of Shenzhen SDG Service Co. Ltd. through Shenzhen SDG Investment Co. Ltd.;
the controlling 3. Holding 8.28% equity of Shenzhen Microgate Technology Co. Ltd. (stock abbreviation: Microgate
shareholder Technology) and controlling 14.46% equity of Shenzhen Microgate Technology Co. Ltd. through the
during the Company's holding subsidiary Shenzhen Capital Fortune Electronic Information Investment Enterprise
reporting (Limited Partnership).period 4. Holding 0.48% equity of Sichuan New Jinlu Group Co. Ltd. (stock abbreviation:New Jinlu).Change in the controlling shareholder during the reporting period
□ Applicable□ Not applicable
During the reporting period the Company had no change in the controlling shareholder.
3. Actual controllers and persons acting in concert of the Company
Nature of actual controller: local state-owned assets administrative authority
Type of actual controller: legal person
Legal
Name of actual Date of
representative/p Organization code Main business
controller establishment
erson in charge
State-owned Assets
Perform the responsibilities of the
Supervision and
investor on behalf of the state and
Management 11440300K31728067
Yang Jun April 2 2004 supervise and manage the state-
Commission of 2
owned assets authorized for
Shenzhen Municipal
supervision according to law.People's Government
Equity of other
domestic and foreign
listed companies
N/A
controlled by the actual
controller during the
reporting period
Changes in actual controller during the reporting period
□ Applicable□ Not applicable
73Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
During the reporting period the Company had no change in the actual controller.Block diagram of property rights and control relationship between the Company and the actual controller
Actual controller controlling the Company by way of trust or other asset management methods
□ Applicable□ Not applicable
4. Shares pledged by the Company's controlling shareholder or the largest shareholder and its acting-in-
concert parties account for 80% of the Company's shares held by them
□ Applicable□ Not applicable
5. Other corporate shareholders with more than 10% shares held
□ Applicable□ Not applicable
6. Restriction in reduction of shares held by controlling shareholder actual controller restructuring
parties and other commitment units
□ Applicable□ Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting Period
Progress in the implementation of share repurchase
□ Applicable□ Not applicable
Progress in the implementation of share repurchase reduction through call auction
□ Applicable□ Not applicable
74Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VIII Preferred Shares
□ Applicable□ Not applicable
During the reporting period the Company had no preferred shares.
75Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section IX Bonds
□ Applicable□ Not applicable
76Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section X Financial Reports
I. Auditor's Report
Type of auditor's opinion Standard unqualified opinion
Signing date of the auditor's report March 26 2025
Grant Thornton Certified Public Accountants (Special General
Name of audit institution
Partnership)
Auditor's Report No. ZTSZ (2025) No. 441A004582
Name of CPA Wu Liang Xiao Na
Text of the Auditor's Report
All shareholders of Shenzhen Tellus Holding Co. Ltd.:
I. Auditor's Opinion
We have audited the attached financial statements of Shenzhen Tellus Holding Co. Ltd.(hereinafter referred to as "Tellus") including Consolidated and Company's Balance Sheets as of
December 31 2024 and Consolidated and Company's Income Statements Consolidated and
Company's Cash Flow Statements and Consolidated and Company's Statements of Changes in
Shareholders' Equity for 2024 as well as relevant Notes to Financial Statements.In our opinion the attached financial statements fairly present in all material respects the
consolidated and Company's financial positions of Tellus as of December 31 2024 and its
consolidated and Company's financial performance and cash flows for the year in accordance with
the ASBE.II. Basis for Auditor's Opinion
We conducted our audit in accordance with the Chinese Certified Public Accountant
Auditing Standards. The section in the Auditor's Report titled "CPAs' Responsibilities for the
Audit of the Financial Statements" further describes our responsibilities under these standards.We are independent of Tellus in accordance with the China Code of Ethics for Certified Public
Accountants and we have fulfilled our other ethical responsibilities. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit.III. Key Audit Matters
Key audit matters are those matters that are deemed most important to the audit of the
financial statements for the current period based on our professional judgment. These matters
are addressed in the context of the audit of the financial statements as a whole and the formation
of the Auditor's Opinion and we do not express a separate opinion on these matters.
77Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(I) Revenue recognition
See Notes III. 26 and V. 44 of the financial statements for details of relevant information
disclosure.
1. Matter description
The Company's operating revenue mainly comes from property leasing and services and
gold and jewelry sales and services. In 2024 the operating revenue of Tellus reached RMB 2.614
billion an increase of 41.53% over the same period last year. Since operating revenue is one of its
key performance indicators there may be a risk that the management of Tellus (hereinafter
referred to as the "management") will achieve specific goals or expectations through inappropriate
revenue recognition. Therefore we have identified revenue recognition as a key audit matter.
2. Audit response
Our audit procedures for revenue recognition mainly include:
(1) Understand the internal control design related to revenue recognition and test the
effectiveness of key control processes.
(2) Assess the appropriateness of the specific method used by Tellus for revenue
recognition by inquiring with the management reviewing sales contracts and analyzing the
timing of control transfer related to revenue recognition.
(3) Implement analysis procedures for operating revenue including the analysis of monthly
revenue and gross profit margin fluctuations in 2024 comparative analysis of revenue prices and
gross profit margins of major products and services between the current period and the previous
year as well as comparative analysis with listed companies in the same industry.
(4) Select major customers to confirm sales for the current period; for samples that did
not receive a response verify the authenticity of transactions by examining subsequent
payments and reviewing sales contracts invoices delivery receipts and other supporting
documents.
(5) Select test samples check the supporting documents related to revenue recognition
this year including real estate lease contracts commodity sales contracts invoices sales
orders outbound delivery orders settlement statements and customer sign-off records etc.and check whether the revenue recognition is accurate;.
78Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(6) Implement the cut-off test check the operating revenue recognized before and after the
balance sheet date against supporting documents such as invoices commodity sales orders
outbound delivery orders and customer receipts and evaluate whether the operating revenue is
recognized in an appropriate period.
(7) Check the business information of new customers customers with large sales changes
and their related parties in 2024 and verify whether there are any unidentified potential related
party relationships and transactions.(II) Confirmation of the book value of investment real estate fixed assets and construction
projects under construction
For the disclosure see Notes Ⅲ15、16 and 17 Ⅴ14、15 and 16.
1. Description of matters
As of December 312024 the value of investment real estate fixed assets account and project
under construction surface of the Company is 1173867957.54 yuan accounting for 45.25% of
the total assets. The book value of investment real estate fixed assets and projects under
construction involves significant management judgment including the standard of the projects
under construction reaching the predetermined usable state and the economic usable life and
residual value rate of fixed assets and investment real estate. Since the evaluation of the book
value of investment real estate fixed assets and the construction under construction involves the
significant judgment of the management and its importance to the consolidated financial
statements we determine the book value of investment real estate fixed assets and the
construction under construction as the key audit matters.
2. Audit response
(1) Understand the key internal controls related to the existence integrity and accuracy of
investment real estate fixed assets and construction under construction evaluate the design of
these internal controls determine whether they are implemented and test the operation
effectiveness of relevant internal controls;
(2) Spot check the purchase contract payment documents invoices acceptance documents
79Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
and other materials of large assets;
(3) Check the construction site under construction understand and evaluate the progress of
the project and check with the entry records;Obtain the ownership certificate of investment real
estate and fixed assets and the company inventory table and draw the important assets on site;
(4) To evaluate whether the management is reasonable to evaluate the usable life and net
residual value of investment real estate and fixed assets;
(5) Obtain the depreciation plan table of investment real estate and fixed assets and
recalculate whether the depreciation plan is accurate;
(6) Obtain the audit data of the pre-transfer project and confirm the rationality of the value of
the pre-transfer assets;
(7) Check whether the information related to the investment real estate fixed assets and the
projects under construction has been properly reported and disclosed in the financial statements.IV. Other Information
The management of Tellus (hereinafter referred to as the "Management") is responsible
for other information. Other information comprises the information included in the 2024
Annual Report of Tellus but does not include the financial statements and our auditor’s report
thereon.Our auditor's opinion on the financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.Based on our audit of financial statements we bear the responsibility of reading other
information and considering whether there is any significant inconsistency or seemingly
material misstatement between other information and the financial statements or situations
obtained by us in the audit process.If based on the work we have executed we conclude that there is a material
misstatement of the other information we should report that fact. In this regard we have
nothing to report.V. Responsibilities of the Management and the Governance for the Financial
Statements
80Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Management of Tellus is responsible for the preparation and fair presentation of the
financial statements in accordance with the Accounting Standards for Business Enterprises
and design implementation and maintenance of necessary internal controls to enable the
preparation of financial statements free from material misstatement whether due to fraud or
error.In preparation of the financial statement the management is responsible for assessing
Tellus' sustainable operation ability disclosing the sustainable operation related items (if
applicable) and applying the going-concern assumption unless otherwise the management
plans to liquidate Tellus stop operation or it has no other practical choice.The governance is responsible for supervising Tellus' financial reporting process.VI. CPAs' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement whether due to fraud or error and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted according to auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in aggregate they could reasonably be expected to
influence the economic decisions users would take on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism in carrying out
our audit according to the auditing standards. At the same time we also:
(1) Identify and assess the risks of material misstatement in the financial statements
whether due to fraud or error design and perform audit procedures in response to those risks
and obtain audit evidence forming a sufficient and appropriate basis for our opinions. The risk
of failing to detect a material misstatement due to fraud is higher than that due to mistakes as
fraud may involve collusion forgery intentional omissions misrepresentations or overriding
internal control.
(2) Understand the internal control relating to the audit to design appropriate audit
procedures. (3) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management's adoption of the going-concern
assumption. and conclude based on the audit evidence obtained whether a material uncertainty
exists related to any events or conditions that cast significant doubt on the ability of Tellus to
continue as a going concern. If we conclude that a material uncertainty exists we are required to
81Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
draw attention in our Auditor's Report to the related disclosures in the Financial Statements;
Where such disclosures are inadequate we should modify our opinion. Our conclusions are based
on information available up to the date of the Auditor's Report. However future events or
conditions may cause Tellus to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
and whether the financial statements fairly present relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities
or business activities in Telco to express an opinion on the financial statements. We are
responsible for directing overseeing and performing the audit of the Group and assume full
responsibility for the audit opinion.We communicate with the governance layer on matters such as the scope and timing of the
audit plan and significant audit findings including those internal control deficiencies that we
identified during the audit that are noteworthy.We also provide a statement to the governance that we have complied with the ethical
requirements related to independence and communicate with the governance all relationships and
other matters that may be reasonably considered to affect our independence as well as the
relevant safeguards (if applicable).From the matters communicated with the governance level we determine which are most
critical to the audit of this periods financial statements and thus constitute key audit matters. We
describe these matters in our audit report unless laws and regulations prohibit their public
disclosure or in rare cases if it is reasonably expected that the negative consequences of
communicating a matter in the audit report would outweigh the benefits to public interest we
determine that such matters should not be communicated in the audit report.II. Financial Statements
The unit of measurement for the statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Tellus Holding Co. Ltd.December 31 2024
Unit: RMB
82Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Item Ending balance Beginning balance
Current assets:
Cash at bank and on hand 377971359.69 220340961.64
Settlement reserve fund
Lendings to banks and other financial institutions
Trading financial assets 165630834.06 206294931.94
Derivative financial assets 292078.00 298320.00
Notes receivable
Accounts receivable 46564067.14 99635751.52
Receivables financing
Prepayments 797409.91 38454434.90
Premiums receivable
Reinsurance premium receivable
Capital reserves receivable from reinsurance contracts
Other receivables 8081783.33 12383516.92
Including: Interest receivable
Dividends receivable 1305581.86
Financial assets purchased under resale agreements
Inventory 127432191.55 178425833.88
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 91587627.94 55206250.00
Other current assets 96743827.38 104833797.59
Total current assets 915101179.00 915873798.39
Non-current assets:
Loans and advances issued
Debt investment
Other debt investments 84724128.76 67627948.60
Long-term receivables
Long-term equity investments 85091833.20 76511487.57
Other equity instrument investments 383317.67
Other non-current financial assets
Investment properties 1099772133.10 1008137341.80
Fixed assets 70763683.25 78935843.49
Construction in progress 3332141.19 7279570.05
Productive biological assets
Oil and gas assets
Right-of-use assets 78558005.50 71904716.50
Intangible assets 3775834.45 3915770.61
Including: Data resources
Development expenditures
83Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Including: Data resources
Goodwill
Long-term deferred expenses 48095409.37 38392179.02
Deferred income tax assets 5496778.78 37836657.43
Other non-current assets 199748111.29 97053053.32
Total non-current assets 1679358058.89 1487977886.06
Total assets 2594459237.89 2403851684.45
Current liabilities:
Short-term borrowings 120101444.43 145131694.44
Borrowings from the central bank
Loans from other banks and other financial institutions
Trading financial liabilities 56881954.76
Derivative financial liabilities 46660.00 1380.00
Notes payable 110000000.00
Accounts payable 125555693.13 135834414.39
Advances from customers 9469503.75 4306567.65
Contract liabilities 4009504.59 7079975.38
Financial assets sold under repurchase agreements
Deposits from banks and other financial institutions
Acting trading securities
Acting underwriting securities
Employee compensation payable 36835623.94 33425356.15
Taxes payable 36109740.02 28857448.06
Other payables 126312280.55 126826966.60
Including: Interest payable
Dividends payable
Handling charges and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current liabilities 8674869.40 7304647.32
Other current liabilities 6142814.36 3388998.35
Total current liabilities 583258134.17 549039403.10
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 76541985.55 69524214.23
Long-term payables 3920160.36 3920160.36
Long-term employee compensation payable
Provisions 268414.80
84Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Deferred income 7837477.60 9617683.53
Deferred tax liabilities 25175508.48 40409890.41
Other non-current liabilities
Total non-current liabilities 113475131.99 123740363.33
Total liabilities 696733266.16 672779766.43
Owners' equity:
Share capital 431058320.00 431058320.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 430866408.50 430866408.50
Less: Treasury shares
Other comprehensive income -7606040.90 -7318552.65
Special reserve
Surplus reserve 74222656.99 63956286.46
General risk provisions
Undistributed profit 798343284.97 685342592.62
Total equity attributable to owners of the parent company 1726884629.56 1603905054.93
Minority shareholders' equity 170841342.17 127166863.09
Total owners' equity 1897725971.73 1731071918.02
Total liabilities and owner's equity 2594459237.89 2403851684.45
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm:
Yu Taiping
2. Parent Company's Balance Sheet
Unit: RMB
Beginning
Item Ending balance
balance
Current assets:
Cash at bank and on hand 25182064.77 8805213.07
Trading financial assets 121340400.00 205942363.02
Derivative financial assets
Notes receivable
Accounts receivable 19714030.82 22080192.24
Receivables financing
Prepayments 96692.05 16240.74
Other receivables 2839370.67 47432527.04
Including: Interest receivable
Dividends receivable 1305581.86
Inventory
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 91587627.94
Other current assets 51886807.24 75546888.89
Total current assets 312646993.49 359823425.00
85Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Non-current assets:
Debt investment
Other debt investments 63517795.43 47081615.27
Long-term receivables
Long-term equity investments 798702607.61 770687026.69
Other equity instrument investments 383317.67
Other non-current financial assets
Investment properties 530187087.36 545303744.96
Fixed assets 13330517.88 15211321.18
Construction in progress 1986361.94 589761.00
Productive biological assets
Oil and gas assets
Right-of-use assets 81973406.34 74533199.59
Intangible assets 2203851.20 2559885.65
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term deferred expenses 20931913.29 21243445.23
Deferred income tax assets 31956786.10
Other non-current assets 26969339.66 69580748.31
Total non-current assets 1539802880.71 1579130851.65
Total assets 1852449874.20 1938954276.65
Current liabilities:
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 59250518.21 71449469.14
Advances from customers 1118873.69 1060721.19
Contract liabilities
Employee compensation payable 30927714.69 27402400.00
Taxes payable 21432181.88 13335268.63
Other payables 120275555.64 271180563.27
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Current portion of non-current liabilities 8212093.33 6706250.92
Other current liabilities 1609232.42 1810007.31
Total current liabilities 242826169.86 392944680.46
Non-current liabilities:
Long-term borrowings
86Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 80617189.54 72936147.42
Long-term payables
Long-term employee compensation payable
Provisions
Deferred income
Deferred tax liabilities 7188936.09 40269279.16
Other non-current liabilities
Total non-current liabilities 87806125.63 113205426.58
Total liabilities 330632295.49 506150107.04
Owners' equity:
Share capital 431058320.00 431058320.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 428256131.23 428256131.23
Less: Treasury shares
Other comprehensive income -7632462.90 -7344974.65
Special reserve
Surplus reserve 74222656.99 63956286.46
Undistributed profit 595912933.39 516878406.57
Total owners' equity 1521817578.71 1432804169.61
Total liabilities and owner's equity 1852449874.20 1938954276.65
3. Consolidated Income Statement
Unit: RMB
Item 2024 2023
I. Total operating revenue 2613678204.37 1846738841.89
Including: Operating revenue 2613678204.37 1846738841.89
Interest income
Premiums earned
Handling charges and commission income
II. Total operating cost 2473190056.25 1783821294.20
Including: Operating cost 2376764300.06 1648337199.60
Interest expenses
Handling charges and commission expenditure
Surrender value
Net payments for insurance claims
Net provision for insurance contract reserves
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges 13172648.28 23230109.06
Selling expenses 22232680.89 19128514.75
87Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Administrative expenses 51362592.45 85621795.09
R&D expenses 3268819.88 1965795.78
Financial expenses 6389014.69 5537879.92
Including: Interest expenses 9096305.49 9444953.16
Interest income 2984792.54 4682945.54
Add: Other income 6597836.15 8491050.39
Investment income (loss to be listed with “-”) 19470482.47 93873513.18
Including: Income from investment in associates and joint ventures 24212981.63 19872836.15
Income from derecognition of financial assets measured at
amortized cost
Exchange income (loss to be listed with "-")
Net exposure hedging income (loss to be listed with "-")
Income from fair value changes (loss to be listed with "-") -10567743.62 -12008283.18
Credit impairment loss (loss to be listed with "-") 5596513.26 -714346.29
Asset impairment loss (loss to be listed with "-") -1046935.57
Income from assets disposal (loss to be listed with "-") -227.20 -59110.10
III. Operating profit (loss to be listed with "-") 161585009.18 151453436.12
Add: Non-operating revenue 3900953.07 2390834.30
Less: Non-operating expenses 2195959.84 319297.02
IV. Total profit (total loss to be listed with "-") 163290002.41 153524973.40
Less: Income tax expenses 24258270.37 42084506.48
V. Net profit (net loss to be listed with "-") 139031732.04 111440466.92
(I) Classified by operating continuity
1. Net profit from continuing operations (net loss to be listed with "-") 139031732.04 111440466.92
2. Net profit from discontinued operations (net loss to be listed with "-")
(II) Classified by attribution of ownership
1. Net profit attributable to the parent company's shareholders 136629870.80 118255140.84
2. Minority shareholders’ gains and losses 2401861.24 -6814673.92
VI. Net after-tax amount of other comprehensive income -287488.25 -7344974.65
Net after-tax amounts of other comprehensive income attributable to the owner of
-287488.25-7344974.65
the parent company
(I) Other comprehensive income that cannot be reclassified into profit and loss -287488.25 -7344974.65
1. Changes arising from the remeasurement of net liabilities of the defined
benefit plan
2. Other comprehensive income that cannot be reclassified into profit or loss
under the equity method
3. Changes in fair value of investment by other equity instruments -287488.25 -7344974.65
4. Changes in fair value of the Company's own credit risk
5. Others
(II) Other comprehensive income to be reclassified into profit or loss
1. Other comprehensive income that can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Reserves for cash flow hedge
6. Translation differences arising from the financial statements of foreign
currency
7. Others
Net after-tax amount of other comprehensive income attributable to minority
88Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
shareholders
VII. Total comprehensive income 138744243.79 104095492.27
Total comprehensive income attributable to the owner of the parent company 136342382.55 110910166.19
Total comprehensive income attributable to minority shareholders 2401861.24 -6814673.92
VIII. Earnings per share
(I) Basic earnings per share 0.3170 0.2743
(II) Diluted earnings per share 0.3170 0.2743
In case of a business merger under common control in the current period the net profit realized by the merged party before the
merger is RMB and the net profit realized by the merged party in the previous period is RMB .Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm:
Yu Taiping
4. Parent Company's Income Statement
Unit: RMB
Item 2024 2023
I. Operating revenues 118323197.59 86993917.15
Less: Operating cost 51537706.69 39689422.24
Taxes and surcharges 1711412.68 13736806.06
Selling expenses 3339658.26 4396824.98
Administrative expenses 42011001.83 50763196.78
R&D expenses
Financial expenses 1410770.64 3446761.53
Including: Interest expenses 2904506.30 5274288.75
Interest income 1598304.15 1929975.93
Add: Other income 73023.60 500.00
Investment income (loss to be listed with “-”) 103747991.59 164693779.53
Including: Income from investment in associates and joint ventures 24212981.63 19872836.15
Income from derecognition of financial assets measured at amortized
cost (loss to be listed with "-")
Net exposure hedging income (loss to be listed with "-")
Income from fair value changes (loss to be listed with "-") -12693036.25 -10680391.42
Credit impairment loss (loss to be listed with "-") -305769.74 -350592.82
Asset impairment loss (loss to be listed with "-")
Income from assets disposal (loss to be listed with "-")
II. Operating profit (loss to be listed with “-”) 109134856.69 128624200.85
Add: Non-operating revenue 1187007.86 577326.80
Less: Non-operating expenses 788792.71 111423.00
III. Total profit (total loss to be listed with “-”) 109533071.84 129090104.65
Less: Income tax expenses 6869366.57 14518961.36
IV. Net profit (net loss to be listed with “-”) 102663705.27 114571143.29
(I) Net profit from continuing operations (net loss to be listed with "-") 102663705.27 114571143.29
(II) Net profit from discontinued operations (net loss to be listed with "-")
V. Net after-tax amount of other comprehensive income -287488.25 -7344974.65
(I) Other comprehensive income that cannot be reclassified into profit and loss -287488.25 -7344974.65
1. Changes arising from the remeasurement of net liabilities of the defined benefit
plan
2. Other comprehensive income that cannot be reclassified into profit or loss
89Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
under the equity method
3. Changes in fair value of investment by other equity instruments -287488.25 -7344974.65
4. Changes in fair value of the Company's own credit risk
5. Others
(II) Other comprehensive income to be reclassified into profit or loss
1. Other comprehensive income that can be reclassified into profit or loss under
the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Reserves for cash flow hedge
6. Translation differences arising from the financial statements of foreign
currency
7. Others
VI. Total comprehensive income 102376217.02 107226168.64
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services 4572552357.58 1963588534.65
Net increase in deposits from customers and placements from banks and other
financial institutions
Net increase in borrowings from the central bank
Net increase in borrowings from other financial institutions
Cash received from premiums of original insurance contracts
Net amount of cash received from reinsurance business
Net increase in deposits of the insured and investments
Cash received from interests handling charges and commissions
Net increase in loans from banks and other financial institutions
Net increase of repurchasing business funds
Net amount of cash received from acting trading securities
Tax refunds received 13271889.24 2622913.63
Other cash received relating to operating activities 76743352.97 53294743.09
Subtotal of cash inflows from operating activities 4662567599.79 2019506191.37
Cash paid for purchase of goods and receipt of labor services 4066869141.07 1817964267.12
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other financial institutions
Cash paid for claims on original insurance contracts
Net increase in lendings to banks and other financial institutions
Cash paid for interests handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 50261809.42 92874692.73
Various taxes paid 75339841.21 61298201.45
Other cash paid relating to operating activities 79807994.24 107509036.53
Subtotal of cash outflows from operating activities 4272278785.94 2079646197.83
Net cash flows from operating activities 390288813.85 -60140006.46
II. Cash flow from investing activities:
90Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Cash received from disposal of investments 820139644.49 628726990.40
Cash received from acquirement of investment income 15712636.00 28100805.87
Net cash received from disposal of fixed assets intangible assets and other long-
1974.829871552.72
term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investing activities 5964034.76 10712284.16
Subtotal of cash inflows from investing activities 841818290.07 677411633.15
Cash paid to acquire fixed assets intangible assets and other long-term assets 34257817.98 84887465.21
Cash paid for investments 985536930.32 717659265.39
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other business units
Other cash paid relating to investing activities 14659543.80 8072396.24
Subtotal of cash outflows from investing activities 1034454292.10 810619126.84
Net cash flows from investing activities -192636002.03 -133207493.69
III. Cash flows from financing activities:
Cash received from absorbing investment
Including: Cash received by subsidiaries from minority shareholders' investments
Cash received from borrowings 415000000.00 359669472.83
Other cash received relating to financing activities 253420.00
Subtotal of cash inflows from financing activities 415000000.00 359922892.83
Cash paid for repayment of debts 440000000.00 358930058.69
Cash paid for distribution of dividends profits or interest repayment 19419827.42 31604191.60
Including: Dividends and profits paid by subsidiaries to minority shareholders
Other cash paid relating to financing activities 12180403.46 7224685.15
Sub-total of cash outflows from financing activities 471600230.88 397758935.44
Net cash flows from financing activities -56600230.88 -37836042.61
IV. Effect of exchange rate changes on cash and cash equivalents 101.09
V. Net increase in cash and cash equivalents 141052580.94 -231183441.67
Add: Beginning balance of cash and cash equivalents 160223387.69 391406829.36
VI. Ending balance of cash and cash equivalents 301275968.63 160223387.69
6. Parent Company's Cash Flow Statement
Unit: RMB
Item 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services 131659527.09 70665037.25
Tax refunds received
Other cash received relating to operating activities 110406614.70 82641549.03
Subtotal of cash inflows from operating activities 242066141.79 153306586.28
Cash paid for purchase of goods and receipt of labor services 28450836.37 9354262.26
Cash paid to and on behalf of employees 32839148.01 44299496.50
Various taxes paid 9851486.55 5286561.86
Other cash paid relating to operating activities 144407205.44 61287642.06
Subtotal of cash outflows from operating activities 215548676.37 120227962.68
Net cash flows from operating activities 26517465.42 33078623.60
II. Cash flow from investing activities:
Cash received from disposal of investments 492856726.33 414826990.40
Cash received from acquirement of investment income 15000000.00 96430863.56
Net cash received from disposal of fixed assets intangible assets and other long-term
assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investing activities 47180211.11 10712284.16
Subtotal of cash inflows from investing activities 555036937.44 521970138.12
Cash paid to acquire fixed assets intangible assets and other long-term assets 22657919.30 74600974.42
91Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Cash paid for investments 512236930.32 467006215.27
Net cash paid for acquisition of subsidiaries and other business units
Other cash paid relating to investing activities 6400000.00 0.00
Subtotal of cash outflows from investing activities 541294849.62 541607189.69
Net cash flows from investing activities 13742087.82 -19637051.57
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings 25693122.83
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 0.00 25693122.83
Cash paid for repayment of debts 0.00 169953708.69
Cash paid for distribution of dividends profits or interest repayment 13408159.80 15656389.63
Other cash paid relating to financing activities 10474541.74 1787614.75
Sub-total of cash outflows from financing activities 23882701.54 187397713.07
Net cash flows from financing activities -23882701.54 -161704590.24
IV. Effect of exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents 16376851.70 -148263018.21
Add: Beginning balance of cash and cash equivalents 8805213.07 157068231.28
VI. Ending balance of cash and cash equivalents 25182064.77 8805213.07
7. Consolidated Statement of Changes in Owners' Equity
Amount in the current period
Unit: RMB
2024
Equity attributable to the owners of the parent company
Other equity Othe Min
instruments r Total
Less: Gene Undi ority
Item Capi com Spec Surp share ownShare Pre Trea ral strib
Perp tal preh ial lus Othe Subt hold ers'capita ferr Ot sury risk uted
etual reser ensiv reser reser rs otal
ers' equit
l ed her share provi profi
bond ves e ve ve
equit y
sha s s sions t y
s inco
res me
I.Ending 430 - 639 685 160 127 173
4310
balance 866 731 562 342 390 166 107
5832
of the 408. 855 86.4 592. 505 863. 191
0.00
previou 50 2.65 6 62 4.93 09 8.02
s year
A
dd:
Change
s in
account
ing
policies
C
orrectio
n of
prior
errors
O
92Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
thers
II.Beginn
430-639685160127173
ing 4310
866731562342390166107
balance 5832
408.85586.4592.505863.191
of the 0.00
502.656624.93098.02
current
year
III.Increas
es/decr
eases
in the
-102
current 113 122 436 166
287663
period 000 979 744 654
488.70.5
(decrea 692. 574. 79.0 053.
253
ses to 35 63 8 71
be
listed
with "-
")
(I)
-
Total 136 136 138
287240
compre 629 342 744
488.186
hensive 870. 382. 243.
251.24
income 80 55 79
(II)
Capital
investe
d and
decreas
ed by
owners
1.
Ordinar
y
shares
investe
d by
the
owner
2.
Capital
contrib
uted by
the
holders
of
other
equity
instrum
ents
3.
Amoun
ts of
93Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
share-
based
payme
nts
include
d in
owners'
equity
4.
Others
---
(III) 102
236133133
Profit 663
291628628
distribu 70.5
78.407.907.9
tion 3
522
1.
-
Approp 102
102
riation 663
663
to 70.5
70.5
surplus 3
3
reserve
2.
Approp
riation
to
general
risk
provisi
on
3.
Distrib - - -
ution to 133 133 133
owners 628 628 628
(or 07.9 07.9 07.9
shareho 2 2 2
lders)
4.
Others
(IV)
Internal
carryov
er of
owners'
equity
1.
Capital
reserve
s
convert
ed to
capital
(or
share
capital)
2.
94Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Surplus
reserve
s
convert
ed to
capital
(or
share
capital)
3.
Surplus
reserve
s to
recover
loss
4.
Retaine
d
earning
s
carried
forwar
d from
change
s in the
defined
benefit
plan
5.
Retaine
d
earning
s
carried
forwar
d from
other
compre
hensive
income
6.
Others
(V)
Special
reserve
1.
Approp
riation
in the
current
period
2.
Utilizat
ion in
the
95Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
current
period
412412
(VI) 726 726
Others 17.8 17.8
44
IV.Ending 430 - 742
4310798172170189
balance 866 760 226
5832343688841772
of the 408. 604 56.9
0.00284.462342.597
current 50 0.90 9
979.56171.73
period
Amount in the previous period
Unit: RMB
2023
Equity attributable to the owners of the parent company
Other equity Othe Min
instruments r ority Total
Less: Gene Undi
Item Capi com Spec Surp share ownShare Per Trea ral strib
Pref tal preh ial lus Othe Subt hold ers'capita pet Ot sury risk uted
erred reser ensiv reser reser rs otal ers' equitl ual her share provi profi
shar ves e ve ve equit y
bon s s sions t
es inco y
ds me
I.Ending 431 524 590 150 150 165
4310264
balance 449 991 605 563 588 622
583222.0
of the 554. 72.1 394. 886 880. 774
0.000
previou 51 3 67 3.31 59 3.90
s year
A
dd:
Change
s in 880 880 880
accoun 4.40 4.40 4.40
ting
policie
s
C
orrecti
on of
prior
errors
O
thers
II.Beginn
431524590150150165
ing 4310 264
449991614564588623
balance 5832 22.0
554.72.1199.766880.654
of the 0.00 0
513077.71598.30
current
year
III. - - 114 947 982 - 748
96Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Increas 583 734 571 283 573 234 353
es/decr 146. 497 14.3 93.5 87.2 220 69.7
eases 01 4.65 3 5 2 17.5 2
in the 0
current
period
(decrea
ses to
be
listed
with "-
")
(I)
-118110-104
Total
734255910681095
compre
497140.166.467492.
hensive
4.6584193.9227
income
(II)
Capital
--
investe
490490
d and
000000
decreas
0.000.00
ed by
owners
1.
Ordina
ry - -
shares 490 490
investe 000 000
d by 0.00 0.00
the
owner
2.
Capital
contrib
uted by
the
holders
of
other
equity
instrum
ents
3.
Amoun
ts of
share-
based
payme
nts
include
d in
owners
' equity
4.
97Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Others
---
(III) 114
235120120
Profit 571
267696696
distribu 14.3
47.232.932.9
tion 3
966
1.
-
Approp 114
114
riation 571
571
to 14.3
14.3
surplus 3
3
reserve
2.
Approp
riation
to
general
risk
provisi
on
3.
Distrib
---
ution
120120120
to
696696696
owners
32.932.932.9
(or
666
shareh
olders)
4.
Others
(IV)
Interna
l
carryov
er of
owners
' equity
1.
Capital
reserve
s
convert
ed to
capital
(or
share
capital)
2.
Surplus
reserve
s
convert
ed to
capital
(or
98Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
share
capital)
3.
Surplus
reserve
s to
recover
loss
4.
Retaine
d
earning
s
carried
forwar
d from
change
s in the
defined
benefit
plan
5.
Retaine
d
earning
s
carried
forwar
d from
other
compre
hensive
income
6.
Others
(V)
Special
reserve
1.
Approp
riation
in the
current
period
2.
Utilizat
ion in
the
current
period
--
--
117122
(VI) 583 583
073904
Others 146. 146.
43.589.5
0101
89
99Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
IV.Ending 430 - 639 685 160 127 173
4310
balance 866 731 562 342 390 166 107
5832
of the 408. 855 86.4 592. 505 863. 191
0.00
current 50 2.65 6 62 4.93 09 8.02
period
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the current period
Unit: RMB
2024
Other equity instruments Other
Less: compr
Item Capital Specia Surplu Undist TotalShare Preferr Perpet Treasu ehensireserve l s ributed Others owners
capital ed ual Others ry ves reserve reserve profit ' equity
shares bonds shares incom
e
I.Ending
balanc 43105 42825 - 63956 51687 1432
e of 8320. 6131. 7344 286.4 8406. 80416
the 00 23 974.65 6 57 9.61
previo
us year
A
dd:
Chang
es in
accoun
ting
policie
s
C
orrecti
on of
prior
errors
O
thers
II.Beginn
ing
4310542825-63956516871432
balanc
8320.6131.7344286.48406.80416
e of
0023974.656579.61
the
current
year
III.Increas - 10266 79034 89013
es/decr 28748 370.5 526.8 409.1
eases 8.25 3 2 0
in the
100Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
current
period
(decre
ases to
be
listed
with "-
")
(I)
Total
compr - 10266 10237
ehensi 28748 3705. 6217.ve 8.25 27 02
incom
e
(II)
Capital
investe
d and
decrea
sed by
owners
1.
Ordina
ry
shares
investe
d by
the
owner
2.
Capital
contrib
uted
by the
holder
s of
other
equity
instru
ments
3.
Amou
nts of
share-
based
payme
nts
includ
ed in
owners
'
equity
4.
Others
101Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(III) - -
10266
Profit 23629 13362
370.5
distrib 178.4 807.9
3
ution 5 2
1.
Appro -
10266
priatio 10266
370.5
n to 370.5
3
surplus 3
reserve
2.
Distrib
ution - -
to 13362 13362
owners 807.9 807.9
(or 2 2
shareh
olders)
3.
Others
(IV)
Interna
l
carryo
ver of
owners
'
equity
1.
Capital
reserve
s
conver
ted to
capital
(or
share
capital
)
2.
Surplu
s
reserve
s
conver
ted to
capital
(or
share
capital
)
3.
Surplu
s
reserve
102Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
s to
recove
r loss
4.
Retain
ed
earnin
gs
carried
forwar
d from
change
s in the
define
d
benefit
plan
5.
Retain
ed
earnin
gs
carried
forwar
d from
other
compr
ehensi
ve
incom
e
6.
Others
(V)
Specia
l
reserve
1.
Appro
priatio
n in
the
current
period
2.
Utiliza
tion in
the
current
period
(VI)
Others
IV. 43105 42825 - 74222 59591 1521
Ending 8320. 6131. 7632 656.9 2933. 81757
balanc 00 23 462.90 9 39 8.71
103Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
e of
the
current
period
Amount in the previous period
Unit: RMB
2023
Other equity instruments Other
Less: compr
Item Capital Specia Surplu Undist TotalShare Preferr Perpet Treasu ehensireserve l s ributed Others owners
capital ed ual Others ry ves reserve reserve profit ' equity
shares bonds shares incom
e
I.Ending
balanc 43105 42825 52499 42583 1337
e of 8320. 6131. 172.1 4010. 64763
the 00 23 3 57 3.93
previo
us year
A
dd:
Chang
es in
accoun
ting
policie
s
C
orrecti
on of
prior
errors
O
thers
II.Beginn
ing
431054282552499425831337
balanc
8320.6131.172.14010.64763
e of
00233573.93
the
current
year
III.Increas
es/decr
eases
in the - 11457 91044 95156
current 7344 114.3 396.0 535.6
period 974.65 3 0 8
(decre
ases to
be
listed
104Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
with "-
")
(I)
Total
compr - 11457 10722
ehensi 7344 1143. 6168.ve 974.65 29 64
incom
e
(II)
Capital
investe
d and
decrea
sed by
owners
1.
Ordina
ry
shares
investe
d by
the
owner
2.
Capital
contrib
uted
by the
holder
s of
other
equity
instru
ments
3.
Amou
nts of
share-
based
payme
nts
includ
ed in
owners
'
equity
4.
Others
(III) - -
11457
Profit 23526 12069
114.3
distrib 747.2 632.9
3
ution 9 6
1.11457-
Appro 114.3 11457
105Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
priatio 3 114.3
n to 3
surplus
reserve
2.
Distrib
ution - -
to 12069 12069
owners 632.9 632.9
(or 6 6
shareh
olders)
3.
Others
(IV)
Interna
l
carryo
ver of
owners
'
equity
1.
Capital
reserve
s
conver
ted to
capital
(or
share
capital
)
2.
Surplu
s
reserve
s
conver
ted to
capital
(or
share
capital
)
3.
Surplu
s
reserve
s to
recove
r loss
4.
Retain
ed
106Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
earnin
gs
carried
forwar
d from
change
s in the
define
d
benefit
plan
5.
Retain
ed
earnin
gs
carried
forwar
d from
other
compr
ehensi
ve
incom
e
6.
Others
(V)
Specia
l
reserve
1.
Appro
priatio
n in
the
current
period
2.
Utiliza
tion in
the
current
period
(VI)
Others
IV.Ending
balanc 43105 42825 - 63956 51687 1432
e of 8320. 6131. 7344 286.4 8406. 80416
the 00 23 974.65 6 57 9.61
current
period
107Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
III. Basic Information of the Company
Shenzhen Tellus Holding Co. Ltd. (hereinafter referred to as "the Company") is a limited liability company
registered in Shenzhen Administration for Industry and Commerce on November 10 1986. The Company was
reorganized and established from the former Shenzhen Machinery Industry Company with the approval through
the Reply on the Reorganization of Shenzhen Machinery Industry Company into Shenzhen Tellus Machinery Co.Ltd. (SFBF [1991] No. 1012) issued by the General Office of Shenzhen Municipal People's Government. The
Company currently holds a business license with a unified social credit code of 91440300192192210U with a
registered capital of RMB 431058320.00 and a total of 431058320 shares including 392778320 A shares
and 38280000 B shares without trading restrictions on sale. The business address of the Company's
headquarters is 3-4/F Tellus Building 2nd Shuibei Road Luohu District Shenzhen. The legal representative is
Fu Chunlong.In 1993 with the approval from the Reply on the Reorganization of Shenzhen Tellus Machinery Co. Ltd. into a
Public Limited Liability Company (SFBF [1992] No. 1850) issued by the General Office of Shenzhen
Municipal People's Government and the Reply on the Issuance of Shares by Shenzhen Tellus Machinery Electric
Co. Ltd. (SRYFZ [1993] No. 092) issued by Shenzhen Special Economic Zone Branch of the People's Bank of
China the Company was reorganized into a public limited liability company through an initial public offering
with a registered capital of RMB 166880000.00 and a total share capital of 166880000 shares. 120900000
shares were converted from former assets 25980000 were issued as A shares and 20000000 were issued as
B shares. Shares issued by the Company had a par value of RMB 1 per share. On June 21 1993 the Company's
shares were listed and traded on the Shenzhen Stock Exchange.According to the resolution of the Company's 1993 Annual General Meeting of Shareholders based on the
share capital of 166880000 shares as of December 31 of that year the Company distributed a cash dividend of
RMB 0.5 and issued 2 bonus shares to all shareholders for every 10 shares held totaling 33376000 shares
which was implemented in 1994. After the share dividend the registered capital was increased to RMB
200256000.00.
According to the resolution of the Company's 1994 Annual General Meeting of Shareholders based on the
share capital of 200256000 shares as of December 31 of that year the Company distributed a cash dividend of
RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held with 0.5 additional shares
totaling 20025600 shares which was implemented in 1995. The registered capital was increased to RMB
220281600.00 after the share distribution and transfer.
According to the resolution of the Company's 1994 Annual General Meeting of Shareholders based on the
share capital of 200256000 shares as of December 31 of that year the Company distributed a cash dividend of
RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held with 0.5 additional shares
totaling 20025600 shares which was implemented in 1995. The registered capital was increased to RMB
220281600.00 after the share distribution and transfer. According to the resolution of the 4th Extraordinary
General Meeting of Shareholders of the Company in 2014 upon the approval of the Reply to the Approval of
Non-public Offering of Shares by Shenzhen Tellus Holding Co. Ltd. (ZJXK [2015] No.173) issued by the China
Securities Regulatory Commission the Company issued 77000000 ordinary A shares to Shenzhen Special
Economic Zone Development Group Co. Ltd. and Shenzhen Capital Fortune Jewelry Industry Investment
Enterprise (Limited Partnership) in 2015. After the issuance the registered capital was increased to RMB
297281600.00.
108Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
According to the resolution of the Company's 2018 Annual General Meeting of Shareholders based on the
share capital of 297281600 shares as of December 31 of that year the Company increased 4.5 shares for every
10 shares to all shareholders through capital reserves totaling 133776720 shares which was implemented in
2019. After the transfer the registered capital was increased to RMB 431058320.00.
Main business activities: property leasing and services jewelry operation.The financial statements and notes to the financial statements were approved by the Fourteenth Formal Meeting
of the Tenth Board of Directors of the Company on March 26 2025.IV. Preparation Fundamentals for Financial Statements
1. Preparation fundamentals
The Company prepared the financial statements according to Accounting Standards for Business
Enterprises issued by the Ministry of Finance as well as relevant application guidelines
interpretations and other provisions (hereinafter collectively referred to as "ASBE"). In addition
the Company also disclosed relevant financial information per the Rules for the Preparation of
Information Disclosure of Companies Issuing Securities to the Public No.15 — General
Provisions on Financial Reports (Revised in 2023) issued by the CSRC.
2. Continuing operations
The financial statements have been prepared based on continuing operations.V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The Company has determined its capitalization criteria for the depreciation of investment
properties depreciation of fixed assets and research and development expenditures and policies
for revenue recognition based on the characteristics of its production and operations. For details
please refer to Notes V. 14 V.15 and V.23 to the financial statements.
1. Declaration on compliance with ASBE
The financial statements prepared by the Company met the requirements of ASBE and truly and
fully reflected the consolidated and Company's financial position as of December 31 2024 and
information such as consolidated and Company's financial performance and consolidated and
Company's cash flow for the year then ended.
2. Accounting period
The accounting period of the Company is from January 1 to December 31 of each calendar year.
109Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3. Business cycle
The business cycle of the Company is 12 months.
4. Bookkeeping base currency
The Company and its domestic subsidiaries take RMB as the bookkeeping base currency. The
Company uses RMB to prepare the financial statements.
5. Method of determining significance criteria and basis of selection
□Applicable □ Not applicable
Item Significance criteria
Significant receivables with provision for bad debts drawn on a Amount ≥ RMB 1000000.00 or accounts for more than 1% of
single basis various receivables
Significant construction in progress The budget amount for a single project is ≥ 20000000.00
Accounts payable with a single account receivable age of more
than one year/other payables accounting for more than 1% of
Significant accounts payable and other payables
the total accounts payable with an amount ≥ RMB
1000000.00
The total revenue from related parties accounts for more than
10% of the total revenue in the consolidated financial
Significant non-wholly-owned subsidiaries statements or the absolute value of net profit accounts for more
than 10% of the net profit in the consolidated financial
statements.Single investment activity accounts for more than 10% of the
Significant investing activities and projects total cash inflows or outflows related to investment activities
or the outflows amount to ≥ RMB 100000000.00.Significant receivables with provision for bad debts drawn on a Amount ≥ RMB 1000000.00 or accounts for more than 1% of
single basis various receivables
Significant construction in progress The budget amount for a single project is ≥ 20000000.00
The book value of long-term equity investment in a single
investee is more than RMB 15 million or the profit and loss on
Significant joint ventures or associates
the long-term equity investment under the equity method
accounts for over 3% of the Company's consolidated net profit.The Company recognizes the profit distribution after the
Significant events after the balance sheet date
balance sheet date as a significant event
6. Accounting treatment method for business mergers under common control and not under common
control
(1) Business mergers under common control
For a business merger under common control the merging party shall measure the assets and
liabilities acquired from the merged party at their book value on the merger date in the
consolidated financial statements of the ultimate controlling party. The difference between the
book value of the net assets obtained in the business merger and the book value of the merger is
used to adjust the capital reserve. Where the capital reserve is insufficient for offset retained
earnings shall be adjusted.Business mergers under common control realized step-by-step through multiple transactions
110Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The assets and liabilities acquired by the merging party from the merged party shall be measured
based on their book value on the merger date in the consolidated financial statements of the
ultimate controlling party. According to the difference between the sum of the book value of
holding investment before merger and the book value of newly paid consideration on the merger
date and the book value of net assets obtained by merging the capital reserve shall be adjusted; if
the capital reserve is insufficient for offset retained earnings may be adjusted. The long-term
equity investment held before the acquisition of the merged party's control by the merging party
and the profit or loss other comprehensive income and changes in other owners' equities that
have been recognized during the period from the date of acquisition of the original equity or the
date of common control of the merging party and the merged entity (which is later) to the merging
date shall offset against the retained beginning earnings or current profits and losses respectively
during the period of the comparative statement.
(2) Business mergers not under common control
For a business merger not under common control the merger costs are the fair value of assets paid
liabilities incurred or assumed and equity securities issued by the Company on the acquisition
date to obtain control over the acquiree. The assets liabilities and contingent liabilities of the
acquiree obtained are recognized as per the fair value on the acquisition date.The difference between the merging cost and the fair value of identifiable net assets obtained
from the acquiree shall be recognized as goodwill and successively measured by deducting the
accumulative depreciation provision by cost; the difference between the merging cost and the fair
value of identifiable net assets obtained from the acquiree shall be included in the current profits
and losses after review.Business mergers not under common control realized step-by-step through multiple transactions
The merging cost shall be equal to the sum of the consideration paid on the acquisition date and
the fair value of the acquiree's equity which has been held before the acquisition date on the
acquisition date. The acquiree's equity held before the acquisition date shall be re-measured at its
fair value on the acquisition date and the difference between the fair value and its book value
shall be included in the current investment income; if the acquiree's equity held before the date of
acquisition involves other comprehensive income changes in other owners' equity shall be
transformed into the current profit on the acquisition date except comprehensive income
generated due to remeasuring the change in net liabilities or new assets of defined benefit plan by
the investee and other comprehensive income related to non-trading equity instrument investment
originally measured at fair value through other comprehensive income.
(3) Disposal of related handling charges for business mergers
Intermediation costs for audit legal service assessment and consultation and other administrative
expenses incurred shall be included in the current profit and loss when incurred during the
business mergers. The transaction expenses of equity securities or debt securities issued as merger
111Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
consideration shall be included in the initially recognized amount of equity securities or debt
securities.
7. Judgment standard for control and preparation of consolidated financial statements
(1) Judgment standard for control
The consolidation scope of consolidated financial statements is determined based on control.Control means the power of the Company over the investee with which the Company enjoys
variable returns through participating in related activities of the investee and can influence its
amount of return by using its power over the investees. Once changes in relevant facts and
circumstances lead to changes in relevant elements involved in the above definition of control the
Company will conduct a reassessment.When judging whether to include a structured entity in the scope of consolidation the Company
evaluates whether to control the structured entity based on all facts and circumstances including
evaluating the purpose and design of the establishment of the structured entity identifying the
types of variable returns and bearing part or all of the return variability by participating in its
related activities.
(2) Preparation of consolidated financial statements
Consolidated financial statements are prepared by the Company based on the financial statements
of the Company and its subsidiaries as well as other related data. In the preparation of
consolidated financial statements the accounting policies and accounting periods of the Company
and its subsidiaries are required to be consistent and significant transactions and current balances
between companies are offset.Where a subsidiary or business has been acquired through a business combination involving
enterprises under common control in the reporting period the subsidiary or business is deemed to
be included in the consolidated financial statements from the date they are controlled by the
ultimate controlling party. Their operating results and cash flows are respectively included in the
consolidated income statement and consolidated cash flow statement from the date they are
controlled by the ultimate controlling party.For subsidiaries and businesses increased due to business combination under different control
during the reporting period the revenues expenses and profits of such subsidiaries and
businesses from the purchase date to the end of the reporting period shall be included in the
consolidated income statement and their cash flows shall be included in the consolidated cash
flow statement.The portion of shareholders' equity of subsidiaries not belonging to the Company shall be listed
separately under the item "Shareholders’ Equity" in the consolidated balance sheet as minority
112Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
shareholders’ equity. The portion of net profit or loss of subsidiaries in the current period
belonging to minority shareholders’ equity shall be listed separately under the item "Minority
Shareholders' Profit or Loss" in the consolidated income statement. If the loss of a subsidiary
borne by minority shareholders exceeds its share in the owner's equity of the subsidiary at the
beginning of the period the balance shall still offset the minority equity.
(3) Acquisition of equity from minority shareholders of subsidiaries
The capital reserve in the consolidated balance sheet shall be adjusted due to the balance between
the long-term equity investment cost newly obtained from minority equity and the net asset share
of subsidiaries calculated continuously starting from the purchase date or consolidation as per the
new shareholding ratio and the balance between disposing money obtained from partial disposal
of subsidiaries' equity investment without loss of control and the net asset share of subsidiaries
calculated continuously starting from the purchase date or consolidation corresponding to the
disposal of long-term equity investment. If the capital reserve is insufficient for offset retained
earnings may be adjusted.
(4) Disposal of the loss of control over subsidiaries
If the Company's control over the original subsidiaries is lost due to the disposal of part of an
equity investment or other reasons the remaining equity shall be recalculated at fair value on the
day when the control is lost. The difference between the sum of consideration acquired from the
disposal of equity and the fair value of the remaining equity minus the sum of the share of net
assets and the goodwill of the original subsidiaries calculated constantly based on the original
shareholding proportion from the acquisition date shall be included in current investment income
at the time of loss of control.When the Company loses control over the original subsidiaries other comprehensive income
in connection with equity investment of the original subsidiaries shall be subject to
accounting treatment using the same basis on which the original subsidiaries directly dispose
of relevant assets or liabilities and other changes in owners' equity related to the original
subsidiaries under the equity method shall be transferred into current profit or loss at the time
of loss of control.
8. Classification of joint arrangements and accounting treatment methods for joint operations
A joint arrangement refers to an arrangement jointly controlled by two or more participants. The
joint arrangement of the Company can be classified into joint operation and joint venture.
(1) Joint operations
Joint operations refer to joint arrangements in which the Company enjoys assets related to the
arrangements and bears liabilities related to the arrangements.
113Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company recognizes the following items related to the quantum of interest in joint operations
and carries out accounting treatment per relevant provisions of ASBE:
A. Recognize the assets held solely and the assets held jointly identified as per its shares;
B. Recognize the liabilities borne solely and the liabilities borne jointly identified as per its shares;
C. Recognize the revenue generated from the sale of shares enjoyed in the joint operation;
D. Recognize the revenue generated from the sale of shares enjoyed in the joint operation as per
its shares;
E. Recognize the expenses incurred separately and the expenses incurred from the joint operation
as per their shares.
(2) Joint ventures
Joint ventures refer to joint arrangements in which the Company only has rights over the net
assets of the arrangements.The Company carries out accounting treatment for investment in joint ventures according to the
provisions on equity method accounting of long-term equity investments.
9. Standards for defining cash and cash equivalents
Cash refers to cash on hand and deposits that are readily available for payment. Cash equivalents
refer to short-term highly liquid investments held by the Company that are readily convertible into
known amounts of cash and have an insignificant risk of change in value.
10. Foreign currency transaction and foreign currency statement translation
Foreign currency transactions of the Company are translated into bookkeeping base currency
according to the spot exchange rate on the transaction date.On the balance sheet date monetary items denominated in foreign currencies are translated at the
spot exchange rate on that date. Exchange differences arising from the difference between the
spot exchange rate on the balance sheet date and that at initial recognition or on the previous
balance sheet date shall be included in current profit and loss; foreign currency non-monetary
items measured at historical cost are still translated at the spot exchange rate on the transaction
date; foreign currency non-monetary items measured at fair value shall be translated at the spot
exchange rate on the date when the fair value is determined. The difference between the translated
amount in recording currency and the original amount in recording currency shall be included in
current profit and loss or other comprehensive incomes according to the nature of the non-
monetary items.
114Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party and form financial
liabilities or equity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company will recognize an item of financial asset or financial liability at the time when it
becomes a party to the contract of the financial instruments.The financial assets shall be derecognized if one of the following conditions is met:
* The contractual right for collecting cash flow of the financial assets is terminated;
* This financial asset has been transferred and meets the following derecognition conditions for
the transfer of financial assets.If the current obligation of a financial liability has been discharged in whole or in part such
financial liability or part thereof shall be derecognized. The Company (the debtor) and the
creditor sign an agreement to replace the existing financial liabilities by assuming new financial
liabilities and if the contractual terms of the new financial liabilities are substantially different
from those of the existing financial liabilities the existing financial liabilities shall be
derecognized and the new financial liabilities shall be recognized at the same time.Financial assets transacted conventionally are subject to accounting recognition and derecognition
on the transaction day.
(2) Classification and measurement of financial assets
According to the business mode of financial assets management and the contractual cash flow
characteristics of financial assets upon initial recognition the Company classifies financial assets
into financial assets measured at amortized cost financial assets at fair value with changes into
other comprehensive income and financial assets at fair value through profit or loss.Financial assets are measured at fair value at initial recognition. For financial assets at fair value
through profit or loss the related transaction fees are directly included in the current profit or loss;
for other financial assets the related transaction fees are included in the initially recognized
amount. For accounts receivable arising from the sale of products or the provision of labor
services which do not include or do not consider significant financing components the amount of
consideration the Company is expected to be entitled to receive is taken as the initial recognition
amount.Financial assets measured at amortized cost
The Company classifies the financial assets that meet all of the following conditions and are not
designated to be measured at fair value through profit or loss as those measured at amortized cost:
115Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The business model of the Company to manage such financial assets is aimed at collecting
contractual cash flows;
The contract terms of the financial assets stipulate that cash flows generated on a specific
date are only payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost using the effective
interest method. Any gains or losses on financial assets at amortized cost that are not part of the
hedging relationship are charged to the current profit or loss at derecognition amortization using
the effective interest method or recognition of impairment.Financial assets at fair value with changes into other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated
to be financial assets at fair value through profit or loss as financial assets at fair value through
other comprehensive income:
The Company manages the financial asset in a business mode that aims at both collecting
contractual cash flows and selling the financial asset;
The contract terms of the financial assets stipulate that cash flows generated on a specific
date are only payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest
impairment losses or gains and exchange gains and losses calculated by the effective interest
method are included in current profits and losses and other gains or losses are included in other
comprehensive income. At the time of derecognition the accumulated gains or losses previously
included in other comprehensive income shall be transferred out from other comprehensive
income and included in current profits and losses.Financial assets at fair value through profit or loss
Except for the above-mentioned financial assets measured at amortized cost and fair value
through other comprehensive income the Company classifies all remaining financial assets as
financial assets at fair value through profit or loss. At the initial recognition to eliminate or
significantly reduce accounting mismatches the Company irrevocably designates some financial
assets that should have been measured at amortized costs or fair value with changes into other
comprehensive income as the financial assets at fair value through profit or loss.Such financial assets are subsequently measured at fair value after initial recognition and the
resulting gains or losses (including interest and dividend revenue) are included in current profit
and loss unless the financial assets are part of the hedging relationship.However for non-trading equity instrument investments the Company irrevocably designates
them as financial assets at fair value with changes into other comprehensive income upon initial
116Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
recognition. The designation is made on a single investment basis and the related investments
meet the definition of equity instruments from the perspective of the issuer.After initial recognition such financial assets are subsequently measured at fair value. Dividend
income that meets the conditions is included in profit or loss and other gains or losses and
changes in fair value are included in other comprehensive income. Upon derecognition the
accumulated gains or losses previously included in other comprehensive income are transferred
out of other comprehensive income and included in retained earnings.The business model of managing financial assets refers to how the Company manages financial
assets to generate cash flows. The business model determines the cash flow source of the financial
assets managed by the Company which may be the collection of contract cash flow the sale of
financial assets or both. The Company determines the business model for managing financial
assets based on objective facts and specific business objectives for managing financial assets
decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine
whether the contractual cash flow generated by the relevant financial assets on the specific date is
only the payment of principal and interest based on the principal amount outstanding. In this
context principal refers to the fair value of financial assets at initial recognition; interest includes
consideration for the time value of money credit risk associated with the amount of principal
outstanding over a specific period and other fundamental borrowing risks costs and profits. In
addition the Company evaluates the contract terms that may cause changes in the time
distribution or amount of contractual cash flows of financial assets to determine whether they
meet the requirements for the above-mentioned contractual cash flow characteristics.Only when the Company changes the business mode of managing financial assets will all affected
related financial assets be reclassified on the first day of the first reporting period after the
business mode changes otherwise financial assets cannot be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities measured at fair value
through profit or loss and financial liabilities measured at amortized cost upon initial recognition.For financial liabilities not classified as financial liabilities at fair value through profit or loss the
transaction costs are recognized in the initially recognized amount.Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and those designated to be measured at fair value through profit or loss upon initial recognition.Such financial liabilities shall be subsequently measured at fair value and the profits or losses
arising from changes in fair value as well as dividends and interest expenditures related to such
financial liabilities shall be included in current profits and losses.
117Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method and gains or losses arising from derecognition or amortization are included in current
profits and losses.Difference between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
* Contractual obligations to deliver cash or other financial assets to other parties.* A contractual obligation to exchange financial assets or financial liabilities with another entity
under potentially unfavorable conditions.* Non-derivative contracts that must or can be settled with the enterprise's equity instruments in
the future and according to which the enterprise will deliver a variable number of its equity
instruments.* Derivative contracts that must or can be settled with the enterprise's equity instruments in the
future except for derivative contracts where a fixed amount of its equity instruments is exchanged
for a fixed amount of cash or other financial assets.Equity instruments refer to contracts that can prove the ownership of residual equity in an
enterprise's assets after all liabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering
cash or other financial assets the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company's equity instrument it is
necessary to consider whether the Company's equity instruments used for the settlement of such
instruments are used as substitutes for cash or other financial assets or to enable the instrument
holder to enjoy residual equity in the assets of the issuer after all liabilities are deducted. If the
situation is the former the instrument is a financial liability of the Company; if it is the latter the
instrument is an equity instrument of the Company.
(4) Derivative financial instruments and embedded derivative instruments
The Company's derivative financial instruments include option contracts among others. It is
initially measured at the fair value on the date of signing the derivative transaction contract and
subsequently measured at its fair value. Derivative financial instruments with positive fair values
are recognized as an asset and those with negative fair values as a liability. Any gain or loss
arising from changes in fair value that does not comply with the provisions of hedge accounting is
directly included in current profits and losses.
118Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
For hybrid instruments containing embedded derivative instruments if the main contract is a
financial asset the relevant provisions of financial asset classification shall apply to the hybrid
instruments as a whole. If the main contract is not a financial asset and the hybrid instrument is
not measured at fair value through profit or loss for accounting treatment the embedded
derivative instruments are not closely related to the main contract in terms of economic
characteristics and risks and have the same conditions as the embedded derivative instruments. If
the separately existing instruments meet the definition of derivative instruments the embedded
derivative instruments shall be separated from the hybrid instruments and treated as separate
derivative financial instruments. If the embedded derivative instruments cannot be measured
separately at the time of acquisition or on the subsequent balance sheet date the hybrid
instruments are designated as financial assets or financial liabilities at fair value through profit or
loss as a whole.
(5) Fair value of financial instruments
Refer to Note V. 11 for determination methods for fair values of financial assets and financial
liabilities.
(6) Impairment of financial assets
The Company carries out impairment accounting treatment and recognizes the loss provision for
the following items based on expected credit losses:
Financial assets measured at amortized cost;
Receivables and debt instrument investments at fair value with changes into other
comprehensive income;
Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 -
Revenue;
Lease receivables;
Financial guarantee contracts (except for those measured at fair value through profit or
loss where the transfer of financial assets does not meet derecognition conditions or is
continuously involved in the transferred financial assets).Measurement of expected credit loss
The expected credit loss refers to the weighted average of the credit losses of financial
instruments with the risk of default as weight. Credit loss refers to the difference between all
contract cash flow that the Company discounts at the original effective interest rate and is
receivable per the contract and all cash flow expected to be received that is the present value of
all cash shortages.
119Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company considers reasonable and reliable information about past events current situation
and forecast of the future economic situation and takes the risk of default as the weight to
calculate the probability-weighted amount of the present value of the difference between the cash
flow receivable from the contract and the cash flow expected to be received and recognize the
expected credit loss.The Company separately measures the expected credit losses of financial instruments at different
stages. If the credit risk of financial instruments has not increased significantly since initial
recognition it is in the first stage. The Company measures the loss provision according to the
expected credit losses in the next 12 months; if the credit risk of a financial instrument has
increased significantly since initial recognition but no credit impairment has occurred it is in the
second stage. The Company measures the loss provision according to the expected credit loss of
the instrument throughout its duration; if a financial instrument has been credit-impaired since
initial recognition it is in the third stage. The Company measures the loss provision according to
the expected credit loss of the instrument throughout its duration.For financial instruments with low credit risk on the balance sheet date the Company assumes
that their credit risks have not increased significantly since initial recognition and measures the
loss provision according to the expected credit losses in the next 12 months.The expected credit loss of the whole duration refers to the expected credit loss caused by all
possible default events of financial instruments throughout the estimated duration. The expected
credit loss in the next 12 months refers to the expected credit loss caused by the possible default
events of financial instruments within 12 months (or the expected duration if the expected
duration of financial instruments is less than 12 months) after the balance sheet date which is part
of the expected credit loss in the whole duration.When the expected credit loss is measured the longest term that the Company needs to consider
is the longest contract term that the enterprise faces credit risk (including the option to renew the
contract).For financial instruments in the first and second stages and with low credit risk the Company
calculates interest income according to the book balance before deducting provision for
impairment and the actual interest rate. For financial instruments in the third stage the Company
calculates interest income according to the amortized cost (that is the book balance less the
impairment provision) and the effective interest rate.For notes receivable accounts receivable financing of accounts receivable contract assets and
other receivables if the credit risk characteristics of a customer are significantly different from
those of other customers in the portfolio or the credit risk characteristics of the customer have
changed significantly the Company shall make provision for bad debts on the receivable item.Except for receivables with provision for bad debts drawn on a single basis the Company divides
receivables into portfolios according to credit risk characteristics and calculates provision for bad
debts based on portfolios.
120Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Notes receivable and accounts receivable
For notes receivable and accounts receivable regardless of whether there is a significant financing
component the Company always measures their loss provision according to the amount
equivalent to the expected credit loss in the whole duration.When the information of expected credit loss cannot be evaluated at a reasonable cost for a single
financial asset or contract asset the Company divides the notes receivable accounts receivable
and contract assets into portfolios according to the credit risk characteristics calculates the
expected credit loss based on the portfolio and determines the portfolio based on the following:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bill
Notes receivable portfolio 2: Commercial acceptance bills
B. Accounts receivable
Accounts receivable portfolio 1: Leasing and other portfolio
Accounts receivable portfolio 2: Jewelry sales business portfolio
For notes receivable and contract assets divided into portfolios the Company refers to the
historical credit loss experience combines the current situation with the forecast of the future
economic situation and calculates the expected credit loss through default risk exposure and the
expected credit loss rate for the whole duration.For the accounts receivable divided into portfolios the Company refers to the historical credit loss
experience combines the current situation with the forecast of the future economic situation
formulates the comparison table of aging of accounts receivable and the expected credit loss rate
in the entire duration and calculates the expected credit loss. The age of accounts receivable shall
be calculated from the date of recognition.Other receivables
The Company divides other receivables into several portfolios based on credit risk characteristics
calculates the expected credit loss based on the portfolio and determines the portfolio based on
the following:
Other receivables portfolio 1: Aging portfolio
Other receivables portfolio 1: Portfolio of deposits and security deposits receivable
Other receivables portfolio 3: Portfolio of related party transactions within the
consolidation scope
121Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
For other receivables that are divided into portfolios the Company calculates the expected credit
loss based on the default risk exposure and the expected credit loss rate within the next 12 months
or the whole duration. The age of other receivables divided into portfolios by aging shall be
calculated from the date of recognition.Creditor's rights investments other creditor's rights investments
For creditor's rights investments and other creditor's rights investments the Company calculates
the expected credit loss according to the nature of the investment as well as various types of
counterparty and risk exposure through default risk exposure and the expected credit loss rate in
the next 12 months or the entire duration.Assessment of significant increase in credit risk
To determine the relative changes in the default risks of financial instruments in the duration and
assess whether the credit risk of financial instruments has increased significantly since initial
recognition the Company compares the default risk of financial instruments on the balance sheet
date with the default risk on the initial recognition date.When determining whether the credit risk has significantly increased since the initial recognition
the Company considers reasonable and well-founded information obtained without unnecessary
additional cost or effort including forward-looking information. The information considered by
the Company includes:
The debtor fails to pay the principal and interest by the contract expiration date;
A significant deterioration (if any) in the external or internal credit ratings of a financial
instrument whether it has occurred or is anticipated;
A significant deterioration in the operating performance of the debtor whether it has
occurred or is anticipated;
Changes in the existing or expected technical market economic or legal environment
which will have a significant adverse impact on the debtor's ability to repay the Company.According to the nature of financial instruments the Company evaluates whether the credit risk
has increased significantly based on individual financial instruments or portfolios of financial
instruments. When evaluating based on portfolios of financial instruments the Company may
classify the financial instruments based on common credit risk characteristics such as overdue
information and credit risk rating.If the financial instrument is overdue for more than 30 days the Company determines that its
credit risk has significantly increased.The Company considers that a default of a financial asset occurs when:
122Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The borrower is unlikely to pay in full what is owed to the Company and the assessment
does not cover the realization of the collateral (if held) or other recourse actions by the
Company;
Financial assets are overdue for more than 90 days.Credit-impaired financial assets
On the balance sheet date the Company evaluates whether the credit impairment has occurred to
financial assets measured by amortized cost and at fair value with changes into other
comprehensive income; When one or more events that have an adverse effect on the expected
future cash flow of a financial asset occur the financial asset becomes a credit-impaired financial
asset. Evidence for credit-impaired financial assets includes the following observable information:
The issuer or debtor is caught in a serious financial difficulty;
The debtor breaches the agreement of contract such as default or overdue payment of
interest or principal;
The Company grants concessions to the debtor due to economic or contractual
considerations related to the debtor's financial difficulties which would not be made under
any other circumstances;
There lies a great probability of bankruptcy or other financial restructuring for the debtor;
The issuer or debtor is caught in financial difficulties which leads to the disappearance of
the active market of the financial asset;
Presentation of provision for expected credit loss
To reflect the changes in the credit risk of financial instruments since the initial recognition the
Company re-measures the expected credit loss on each balance sheet date. The increase or
reversal amount of provision for loss therefrom shall be regarded as impairment loss or gain and
included in current profits and losses. For the financial assets measured at amortized cost the
provision for loss shall be used to offset against the book value of financial assets presented in the
balance sheet; for the debt investments measured at fair value with changes into other
comprehensive income the Company recognizes the provision for loss in other comprehensive
income and the book value of financial assets will not be deducted.Write-off
When the Company no longer reasonably expects that the contractual cash flow of the financial
asset can be recovered in whole or in part the book balance of the financial asset is directly
written down. Such write-downs may constitute the derecognition of related financial assets. This
usually happens when the Company determines that the debtor has no assets or sources of revenue
to generate sufficient cash flow to repay the amount to be written down. However according to
123Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the Company's procedures for recovering due amounts written-down financial assets may still be
affected by implementation activities.If the write-down financial assets are recovered later they shall be regarded as the reversal of
impairment loss and included in the current profits and losses.
(7) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the other
party other than the issuer of such financial assets (transferee).If the Company has transferred substantially all risks and rewards of ownership of a financial
asset to the transferee the financial asset shall be derecognized; if it retains substantially all risks
and rewards of ownership of the financial asset the financial asset shall not be derecognized.If the Company neither transfers nor retains almost all risks and rewards of ownership of a
financial asset it shall deal with them as follows: If the control over the financial asset is waived
the financial asset shall be derecognized and the assets and liabilities incurred shall be recognized;
if the control over the financial asset is not waived the relevant financial asset shall be recognized
to the extent that it continues to be involved in the transferred financial asset and the relevant
liabilities shall be recognized accordingly.
(8) Offset of financial assets and liabilities
When the Company has a legal right to offset the recognized financial assets and financial
liabilities and such legal right is currently enforceable and the Company plans to settle on a net
basis or realize the financial assets and pay off the financial liabilities simultaneously the
financial assets and financial liabilities are presented in the balance sheet at the amount after
offsetting each other. In addition financial assets and financial liabilities are presented separately
in the balance sheet and are not mutually offset.The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.
12. Inventories
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.
(1) Classification of inventories
The Company's inventories include raw materials finished goods hedged items materials
processed on a commission basis and goods sold on a commission basis.
(2) Valuation method for dispatched inventories
124Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Inventories of the Company are priced by actual cost when acquired. Raw materials and goods in
stock shall be sent out by first-in first-out method.
(3) Recognition and withdrawal of provision for decline in the value of inventories
On the balance sheet date inventories are valued by cost or net realizable value whichever is
lower. If the net realizable value is lower than the cost the provision for decline in the value of
inventories is accrued.Net realizable value is the estimated selling price less estimated costs to be incurred upon
completion estimated selling expenses and related taxes. When the net realizable value of
inventories is determined the obtained concrete evidence is taken as a basis and the purpose of
holding inventories and the impact of matters after the balance sheet date are taken into
consideration.The Company usually conducts the provision for decline in the value of inventories on an
individual inventory item basis. For the inventories with high quantity and low unit price the
provision for decline in the value of inventories will be done by inventory class.On the balance sheet date if the factors affecting the previous write-down of inventory value have
disappeared the provision for decline in the value of inventories shall be reversed within the
amount original provision.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) Amortization methods for low-value consumables and packing materials
The Company adopts the one-off amortization method for low-value consumables collected.
13. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries joint ventures and
associates. When the Company can exercise significant influence over the investee the investee is
an associate.
(1) Recognition of initial investment cost
Long-term equity investment formed by business combination: For long-term equity investment
acquired through business combination under common control the book value share of the
owner's equity of the combined party in the consolidated financial statements of the ultimate
controlling party shall be recognized as the investment cost on the combination date; for long-
term equity investment acquired through business combination under different control the
combination cost shall be recognized as the investment cost of long-term equity investment.
125Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
For long-term equity investments acquired by other methods: For those acquired by cash payment
the actual purchase price shall be taken as the initial investment cost; for those acquired by issuing
equity securities the fair value of issued equity securities shall be taken as the initial investment
cost.
(2) Subsequent measurement and recognition of related profit or loss
Investments in subsidiaries are accounted for using the cost method unless they meet the
conditions of being held for sale; investments in associates and joint ventures are calculated
through the equity method.For long-term equity investments calculated by cost method except for the declared but not yet
released cash dividends or profits included in the actual price or consideration paid when
acquiring the investment the distributed cash dividends or profits declared by the investee shall
be recognized as investment income and included in current profits and losses.For long-term equity investments calculated through the equity method if the initial investment
cost is greater than the share of fair value of net identifiable assets of the investee at the time of
investment the investment cost of the long-term equity investment shall not be adjusted; if the
initial investment cost is less than the share of fair value of net identifiable assets of the investee
at the time of investment the book value of the long-term equity investment shall be adjusted and
the difference shall be included in current profits and losses.For equity method-based calculation the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profits and losses and other
comprehensive income realized by the investee that shall be enjoyed or shared. Meanwhile the
book value of the long-term equity investment shall be adjusted. The part of the due share shall be
calculated according to the distributed profit or cash dividend declared by the investee and the
book value of the long-term equity investment shall be reduced accordingly. For other changes of
owners' equity of the investee apart from net profit and loss other comprehensive income and
profit distribution the book value of long-term equity investment shall be adjusted and included
in capital reserve (other capital reserves). The recognition of the share of the investee's net profits
and losses that should be enjoyed is based on the fair value of the identifiable assets of the
investee at the time of investment acquisition. The investee's net profit is then adjusted per the
Company's accounting policies before recognition during the accounting period.If it can exert a significant influence or implement joint control to the investee but not constitute
the control due to the additional investment and other causes on the date of transition the sum of
the fair value of equity originally held and the new investment cost shall be regarded as the initial
investment cost accounted through the equity method. If the original equity is classified as a non-
trading equity instrument investment measured at fair value with changes into other
comprehensive income the related accumulated changes in fair value originally included in other
comprehensive income shall be transferred to retained earnings in accounting using the equity
method.
126Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Suppose the Company loses joint control over or significant influence on the investee due to the
disposal of partial equity investment and other reasons. In that case the remaining equity after
disposal shall be subject to accounting treatment according to the Accounting Standards for
Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments on the
date of losing joint control or significant influence and the difference between fair value and
book value shall be included in current profits and losses. Other comprehensive income
recognized from the original equity investment due to accounting through the equity method shall
be subject to accounting treatment using the same basis on which the investee directly disposes of
relevant assets or liabilities when the accounting with the equity method is terminated; other
changes in owner's equity related to the original equity investment shall be transferred into current
profits and losses.If the Company loses control over the investee due to the disposal of partial equity investment or
other reasons and the residual equity after disposal can exercise joint control over or significant
influence on the investee it shall be accounted for through the equity method instead and
adjusted as if it had been calculated through the equity method since it was acquired; if the
residual equity after disposal cannot exercise joint control over or significant influence on the
investee it shall be subject to accounting treatment according to relevant provisions of
Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of
Financial Instruments and the difference between its fair value and book value since the date of
losing control shall be included in current profits or losses.If the shareholding proportion of the Company decreases due to capital increase by other investors
resulting in loss of control but common control over or significant influence on the investee the
Company's share of net assets increased due to capital increase and share expansion of the
investee shall be recognized according to the new shareholding proportion. The difference
between the original book value of long-term equity investment corresponding to the decrease in
the shareholding proportion that shall be carried forward shall be included in current profits and
losses; the new shareholding proportion is then adjusted as if it had been accounted for using the
equity method since the acquisition of the investment.Unrealized internal transaction gains and losses between the Company and associates and joint
ventures shall be calculated according to the shareholding proportion and the investment gains
and losses shall be recognized based on the offset. However the unrealized internal transaction
losses incurred between the Company and the investee that belong to impairment loss of
transferred assets shall not be offset.
(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the sharing of control over certain arrangements under related agreements
and associated activities of the arrangement can be determined only when the unanimous consent
of the parties sharing the control right is obtained. When determining the existence of joint control
the first step is to assess whether the arrangement is collectively controlled by all parties involved
or a combination of the parties. The next step is to evaluate whether decisions about the relevant
activities of the arrangement require the unanimous consent of those parties who collectively
127Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
control the arrangement. If all participants or a group of participants must act in concert to decide
the relevant activities of an arrangement it is considered that all participants or a group of
participants collectively control the arrangement; if two or more participants can collectively
control an arrangement it does not constitute joint control. Protective rights are not considered in
determining whether or not there is joint control.Significant influence means the power of the investor to participate in making decisions on the
financial and operating policies of an investee but the investor cannot control or jointly control
with other parties over the formulation of these policies. When determining whether significant
influence can be exerted on the investee we shall consider the impact of voting shares directly or
indirectly held by the investor and current executable potential voting rights held by the investor
and other parties after they are assumed to be converted into equity in the investee including the
impact of current convertible warrants and share options and convertible corporate bonds issued
by the investee.If the Company directly owns or indirectly owns via its subsidiaries more than 20% (including)
but less than 50% of voting shares of the investee the condition shall be recognized as exerting
significant influence on the investee unless concrete evidence shows that participation in the
production and business decisions of the investee is not allowed without constituting significant
influence. If the voting shares of the investee owned by the Company are less than 20% (not
including) the condition shall not be considered as being of significant influence on the investee
in general unless concrete evidence shows that the Company can participate in the production and
business decisions of the investee under this condition constituting significant influence.
(4) Impairment test method and accrual method for impairment provision
For investments in subsidiaries associates and joint ventures please see Note V. 19 for the
accrual method for impairment provision.
14. Investment properties
Measurement model of investment properties
Cost method
Depreciation or amortization method
Investment properties are properties held for rent earnings capital appreciation or both.Investment properties of the Company include the land right of use that has already been rented
the land right of use held for transfer after appreciation and buildings that have been rented.Investment properties of the Company shall be initially measured as per the price upon acquisition
and depreciated or amortized on schedule as per relevant provisions on fixed assets or intangible
assets.Investment properties are measured subsequently as per the cost model. See Note V. 19 for the
provision method of assets impairment.
128Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The disposal income from the sale transfer discard or destruction of the investment properties
shall be included in current profits and losses after their book value and relevant taxes are
deducted.
15. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for producing goods rendering
labor services renting or business management with a useful life of over one fiscal year.The fixed assets can be recognized only when the economic benefits related to such fixed
assets are likely to flow into an enterprise and the cost of such fixed assets can be measured reliably.Fixed assets of the Company shall be initially measured at the actual cost when acquired.For the subsequent expenses related to fixed assets if the economic benefits of the assets are
likely to flow into the Company and the cost can be reliably measured they are included in the cost
of fixed assets; daily repair costs of fixed assets that do not meet the conditions for subsequent
expenses for capitalization of fixed assets are included in current profits and losses or the cost of
relevant assets according to the beneficiaries upon occurrence. The book value of the part being
replaced will be derecognized.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciation period Residual ratio
rate
Premises and buildings Straight-line method 10 35-40 03 10 2.43-2.77
Including: Decoration
Straight-line method 10 0 10
of self-owned houses
Machinery equipment Straight-line method 10 3 9.70
Electronic equipment Straight-line method 3 3 32.33
Transportation
Straight-line method 7 3 13.86
equipment
Office and other
Straight-line method 5 3 19.40
equipment
The depreciation rate of fixed assets with provision for impairment shall be calculated by
deducting the accumulated amount of provision for impairment of fixed assets.
16. Construction in progress
The Company's cost of construction in progress is determined according to the actual construction
expenditures including various necessary construction expenditures incurred during the
construction period borrowing costs that shall be capitalized before the project reaches the
expected serviceable condition and other relevant expenses.
129Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Construction in progress is transferred to fixed assets when it is ready for its intended use.See Note V. 19 for the provision method of assets impairment of the construction in progress.
17. Borrowing costs
(1) Recognition principle for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition
construction or production of assets eligible for capitalization shall be capitalized and included in
relevant asset costs; other borrowing costs shall be recognized as expenses according to their
amount when incurred and included in current profits and losses. Borrowing costs shall be
capitalized when all of the following conditions are satisfied:
* Expenditures on an asset have been incurred and expenditures on the asset comprise
payments in cash transfer of non-cash assets or assumption of debts with interests for acquisition
and construction or production of the asset qualifying for capitalization;
* Borrowing costs have been occurred;
* The acquisition construction or production activities necessary to bring the assets to their
intended use or sale have started.
(2) Period of borrowing costs capitalization
The capitalization of borrowing costs shall cease when the assets eligible for capitalization
acquired constructed or produced by the Company are ready for their intended use or sale.Borrowing costs incurred after the assets meeting capitalization conditions are ready for their
intended use or sale shall be recognized as expenses according to the amount incurred and
included in the current profits or losses.If the acquisition construction or production of assets eligible for capitalization is interrupted
abnormally and the interruption period exceeds three consecutive months the capitalization of
borrowing costs shall be suspended; the borrowing costs during the normal interruption period
shall continue to be capitalized.
(3) Capitalization rate and calculation method of capitalization amount of borrowing costs
The balance of the interest from special borrowings that occurred in the current period deducting
the interest income acquired from unused borrowings deposited in banks or deducting investment
income from temporary investment of the borrowings shall be capitalized. The capitalized amount
of general borrowing shall be determined by multiplying the weighted average of the asset
expenditures from the accumulative asset expenditures exceeding the special borrowing by the
capitalization rate of general borrowing occupied. The capitalization rate is determined based on
the weighted average interest rate of general borrowing.
130Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
During the capitalization period the balance of exchange for special foreign-currency borrowings
shall be capitalized in full amount while that of general foreign-currency borrowings shall be
included in current profits and losses.
18. Intangible assets
(1) Service life and its determination basis estimation amortization method or review procedure
The Company's intangible assets include land use rights computer software trademark etc.Intangible assets are initially measured at cost and their service life is determined upon acquisition.If the service life of an intangible asset is limited it shall be amortized within the estimated
service life with an amortization method that can reflect the expected realization mode of
economic benefits related to the asset since the asset is available for use; if the expected
realization mode cannot be reliably determined the asset shall be amortized with the straight-line
method; intangible assets with uncertain service life shall not be amortized.The amortization method for intangible assets with limited service life is as follows:
Category Service Determination basis of service life Amortizationlife method Remarks
Land use
right 50 years Legal right to use
Straight-line
method
Computer 5 years Determine the service life with reference to the term Straight-linesoftware that can bring economic benefits to the Company method
Trademark 10 years Determine the service life with reference to the term Straight-linethat can bring economic benefits to the Company method
At the end of each year the Company shall recheck the service life and amortization method of
intangible assets with finite service life. If there are changes from previous estimates the original
estimates shall be adjusted and the changes shall be accounted for as changes in accounting
estimates.If an intangible asset is expected no longer to generate future economic benefits for the Company
at the balance sheet date the book value of the asset is transferred to current profits and losses.See Note V. 19 for the provision method of assets impairment of the intangible assets.
(2) Collection scope of R&D expenditures and relevant accounting treatment methods
The R&D expenditures of the Company refer to expenditures directly related to the R&D
activities of the Company including salaries of R&D personnel direct R&D investments
depreciation expenses and long-term deferred expenses design expenses equipment
commissioning expenses amortization expenses of intangible assets expenses incurred from
commissioned external R&D and other expenses. The salaries of R&D personnel are included in
R&D expenditures according to the project working hours. Equipment production lines and sites
131Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
shared for R&D activities and other production and operation activities are included in R&D
expenditures according to the proportion of working hours and area.The Company divides the expenditure of internal R&D projects into research stage expenditure
and development stage expenditure.Expenditures at the research stage shall be included in current profits or losses when incurred.Expenditures at the development stage can be capitalized only when all of the following
conditions are met namely: It is technically feasible to complete the intangible assets so that they
can be used or sold; there is an intention to complete the intangible asset and use or sell it; ways
for intangible assets to generate economic benefits include proving that there is a market for the
products produced by using the intangible assets or the intangible assets themselves as well as
proving their usefulness if intangible assets are to be used internally; there are sufficient technical
financial and other resources to complete the development of the intangible assets and have the
ability to use or sell them; the expenditures attributable to the development stage of intangible
assets can be measured reliably. Development expenditures that do not meet the above conditions
are included in current profits and losses.The R&D projects of the Company will enter the development stage after meeting the above
conditions and passing the technical feasibility study and economic feasibility study to gain
project approval.The capitalized expenditures in the development stage shall be presented as development costs on
the balance sheet and shall be transferred into intangible assets from the date when the project
meets the expected usage.
19. Impairment of long-term assets
The impairment of the long-term equity investments in subsidiaries associates and joint ventures
as well as of investment properties fixed assets construction in progress right-of-use assets
intangible assets and others subsequently measured by cost model (except for inventories
investment properties deferred income tax assets and financial assets measured by fair value
model) shall be determined by the Company according to the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If
such a sign exists the Company estimates the recoverable amount and conducts the impairment
test. The goodwill formed due to business combination intangible assets with uncertain service
life and intangible assets that have not yet reached their intended use shall be tested for
impairment every year regardless of whether there is any sign of impairment.The recoverable amount is the net amount gained after the fair value of assets deducts the disposal
fees or the present value of the estimated future cash flow of the assets whichever is higher. The
Company estimates the recoverable amount on a single-asset basis. If it is difficult to estimate the
recoverable amount of a single asset the recoverable amount of the asset group shall be
132Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
determined based on the asset group to which the asset belongs. The asset group is determined by
whether the main cash flow generated by the asset group is independent of those generated by
other assets or asset groups.When the asset or asset group's recoverable amount is lower than its book value the Company
reduces its book value to its recoverable amount the reduced amount is recorded in the current
profit and loss and the provision for impairment of assets is recognized.For the impairment test of goodwill the book value of goodwill formed by the business
combination shall be amortized to relevant asset groups with a reasonable method since the
acquisition date; if it is difficult to amortize to relevant asset groups it shall be amortized to
relevant asset group portfolios. Asset group or portfolio of asset group is an asset group or
portfolio of asset group that can benefit from synergies of a business combination and is not
greater than the reportable segment of the Company.During the impairment test if there is any sign of impairment in the asset groups or portfolios of
asset groups related to goodwill first conduct an impairment test for asset groups or portfolios of
asset groups that do not contain goodwill calculate the recoverable amount and recognize the
corresponding impairment loss. Then an impairment test shall be conducted on the asset groups
or portfolios of asset groups that include goodwill. The book value should be compared with the
recoverable amount; if the recoverable amount is found to be lower than the book value an
impairment loss for goodwill shall be recognized.Once recognized the impairment loss of assets shall not be reversed in future accounting periods.
20. Long-term deferred expenses
Long-term deferred expenses of the Company shall be valued as per actual cost and averagely
amortized as per the expected benefit period. If the long-term deferred expense project will not
benefit the future accounting period the amortized value of the project shall be included in the
current profit and loss in full amount.
21. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when employees provide services the Company recognizes the
actual salary and bonus of employees social insurance premiums such as medical insurance
premiums work-related injury insurance premiums and maternity insurance premiums paid for
employees according to the specified benchmark and proportion and housing fund as liabilities
and includes them in current profits and losses or relevant asset costs.
133Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(2) Accounting treatment for post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans.Among them the defined contribution plan refers to a post-employment benefit plan in which the
enterprise has no further payment obligation after paying fixed expenses to an independent fund;
the defined benefit plan refers to a post-employment benefit plan other than a defined contribution
plan.Defined contribution plan
The defined contribution plan includes basic endowment insurance unemployment insurance etc.During the accounting period when employees provide services the amount payable calculated
according to the defined contribution plan is recognized as a liability and included in current
profits and losses or related asset costs.Defined benefit plans
For defined benefit plans an independent actuary shall carry out actuarial valuation on the annual
balance sheet date and determine the cost of providing benefits with the expected cumulative
welfare unit method. Employee compensation costs arising from the defined benefit plan of the
Company shall include the following components:
* Service costs including current service costs past service costs and settlement gains or losses.Current service costs refer to the increased amount in the present value of defined benefit plan
obligations caused when employees provide services in the current period; past service costs refer
to the increase or decrease in the present value of defined benefit plan obligations related to
employee services in previous periods caused by modifications for defined benefit plans.* Net interest on the defined benefit plan net liabilities or assets including interest income on
plan assets interest cost on the defined benefit plan obligation and interest on the effect of the
asset ceiling.* Changes as a result of remeasurement of the defined benefit plan's net liabilities or assets.Unless other accounting standards require or allow employee's benefit costs to be included in
assets costs the above items * and * shall be included by the Company in current profits and
losses; item * shall be included in other comprehensive income and be not reversed to profit or
loss; when the original defined benefit plan is terminated the amount included in other
comprehensive income before shall be completely transferred to the undistributed profit.
(3) Accounting treatment for termination benefits
If the Company provides termination benefits to employees the employee compensation
liabilities arising from the termination benefits shall be recognized at the earliest of the following
two dates and included in current profits and losses: The Company cannot unilaterally withdraw
134Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the termination benefits provided due to the labor relationship termination plan or layoff proposal;
the Company recognizes the costs or expenses related to the restructuring involving the payment
of termination benefits.If an employee's internal retirement plan is implemented the economic compensation before the
official retirement date belongs to the termination benefits. During the period from the date when
the employee stops providing services to the normal retirement date the wages to be paid to the
early retired employees and the social insurance premiums to be paid are included in current
profits and losses in a lump sum. Economic compensation after the official retirement date (such
as the pension) is treated as post-employment benefits.
(4) Accounting treatment for other long-term employee benefits
The other long-term employee benefits provided by the Company to its employees which meet
the criteria for a defined contribution plan shall be handled per the regulations relevant to the
defined contribution plan mentioned above. If the benefits meet the defined benefit plan they
shall be handled per the relevant provisions on the defined benefit plan above but the part of
"changes arising from re-measuring the net liabilities or net assets of the defined benefit plan" in
the relevant employee compensation costs shall be included in current profits and losses or the
relevant asset costs.
22. Estimated liabilities
An obligation related to contingencies if satisfying the following conditions at the same time
will be recognized as an estimated liability by the Company:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause outflow of economic interest of the
Company;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured at the optimal estimate required to perform the relevant
current obligation in comprehensive consideration of the risks uncertainty time value of money
and other factors pertinent to the contingencies. Where the time value of money is of significant
influence the optimal estimate is recognized through the discount of relevant future cash outflows.At the balance sheet date the book value of the estimated liabilities is reviewed and adjusted by
the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized estimated liabilities are
expected to be compensated by a third party or any other party the amount of compensation shall
be recognized as assets separately only when it is basically sure that the amount can be obtained.The recognized amount of compensation shall not exceed the book value of recognized liabilities.
135Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
23. Revenue
Accounting policies of revenue disclosure recognition and measurement by business types
(1) General principle
The Company has fulfilled its performance obligations of the contract which means it recognizes
the revenue when the customer has acquired the control rights of relevant goods or services.If the contract contains two or more performance obligations the Company shall at the beginning
date of the contract apportion the transaction price to each performance obligation according to
the relative proportion of the individual selling price of the commodities or services promised by
each performance obligation and measure the revenue according to the transaction price
apportioned to each performance obligation.When one of the following conditions is met it is considered the fulfillment of performance
obligations over a period of time; otherwise it is regarded as the fulfillment of performance
obligations at a specific point in time:
* The customer simultaneously obtains and consumes the economic benefits arising from the
contract performance of the Company.* The customer can control the goods under construction during the performance of the
Company.* The goods produced during the performance of the Company have irreplaceable uses and the
Company has the right to collect payments for the accumulated performance portion to date
throughout the contract period.For the performance obligations performed within a certain period of time the Company shall
recognize the revenue within that period according to the performance progress. If the
performance progress cannot be reasonably confirmed and the costs incurred by the Company are
expected to be compensated the incomes shall be recognized according to the amount of costs
incurred until the performance progress is reasonably confirmed.In the case of a performance obligation satisfied at a certain time point the revenue shall be
recognized by the Company at a certain time point when a customer obtains control of relevant
goods or services. In determining whether a customer has obtained the control rights of the goods
or services the Company shall consider the following signs:
* The Company enjoys the current collection right concerning such goods or services i.e.customers have the obligation to pay immediately concerning the goods.
136Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
* The Company has transferred the legal ownership of the goods to customers i.e. customers
have owned the legal ownership of the goods.* The Company has transferred the goods to customers in kind i.e. customers have possessed
the goods.* The Company has transferred the major risks and rewards from the ownership of the goods to
customers i.e. customers have obtained the major risks and remuneration on the ownership of the
goods.* Customers have accepted such goods or services.* Other signs indicate that customers have obtained the right to control the goods.
(2) Specific method
The Company's revenue is mainly derived from the following businesses: Property leasing and
services and jewelry sales and services.* Property leasing and services
See Note V. 26 for the specific method for the recognition of revenue from property leasing and
services.* Sales and services of gold and jewelry
The Company determines whether it is the main responsible person or the agent during
transactions according to its control over goods or services before transferring them to customers.If the Company has control over the goods or services before transferring them to customers the
Company is the main responsible person and recognizes the revenue according to the total
consideration received or receivable; otherwise the Company acts as an agent and recognizes the
revenue according to the amount of commission or handling charge expected to be entitled which
is determined according to the net amount of the total consideration received or receivable after
deducting the price payable to other related parties or according to the established commission
amount or proportion.The specific recognition method of revenues generated from gold and jewelry sales is as follows:
In gold and jewelry sales the Company mainly takes a direct-sales model with the sales agency
model as a supplement. For the direct-sales model the sales channels include wholesalers e-
commerce and retail in direct-sales stores. The time points for revenue recognition under the
sales models with such channels as wholesalers e-commerce and retail are as follows:
* In wholesaler sales purchasers cooperate with the Company directly. The time point is when
the goods-related control rights have been transferred to the purchasers which signifies that the
137Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
performance obligation is completed according to the sales contract. The revenue will then be
recognized after customers accept the goods and issue receipts. This is a performance obligation
performed at a certain time point.* In e-commerce sales the Company sells goods on e-commerce platforms. The sales revenue
will be recognized when customers have signed for the goods and the Company has received
payments or obtained the right to claim payments. This is a performance obligation performed at a
certain time point.* In retail through direct-sales stores the Company sells its goods in its self-owned real estate.The sales revenue will be recognized when the Company has sold goods to customers and
received payments or obtained the right to claim payments. This is a performance obligation
performed at a certain time point.* In the sales agency model the Company sends products to stores of entrusted sellers. The
sales revenue will be recognized when the sellers have sold goods to end consumers end
consumers have signed for goods and the control right has been transferred to end consumers.This is also the time point signifying that the obligation performance for the contract is done. This
is a performance obligation performed at a certain time point.The specific methods for recognizing other revenues for the Company are as follows:
In the independent gold repurchase business the Company obtains old gold from the market and
entrusts refineries to process it into standard gold bars. The standard gold bars will then be sold to
the Shanghai Gold Exchange. According to the set price by the Shanghai Gold Exchange at
specific time points the Company confirms the selling (counting) in the trading system and
recognizes the revenue after obtaining the settlement document of the Shanghai Gold Exchange.In the gold and jewelry sales agency business the Company acts as an agent and provides agency
services for principals according to the agency purchase agreement to earn agency commission
fees. The Company recognizes the agency commission revenue when customers pay and sign for
goods.In the agency gold repurchase business the Company acts as a supplier agent to repurchase gold
and collect service fees. Revenue is calculated and recognized based on the duration of the agency
gold repurchase and according to the contract.Recognition methods and measurement methods for the same kind of business with different business models and different
revenues
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.
24. Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied
and the government subsidies can be received.
138Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The government subsidies of monetary assets shall be measured at the amount received or
receivable. The government subsidies considered non-monetary assets are measured based on the
fair value or the nominal amount of RMB 1 if the fair value cannot be acquired reliably.Asset-related government subsidies refer to the ones that are acquired by the Company and used
for establishing or forming long-term assets in other ways. Other government subsidies are
considered revenue-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government
documents if they can be used to form long-term assets the government subsidies corresponding
to the value of the assets are deemed as asset-related government subsidies while the rest are
deemed as revenue-related government subsidies. For the government subsidies that are difficult
to differentiate the government subsidies as a whole are deemed as revenue-related government
subsidies.The asset-related government subsidies shall be recognized as deferred income which shall be
included in profits and losses in installments reasonably and systematically within the service life
of the relevant assets. For revenue-related government subsidies they shall be included in the
current profit and loss if used to compensate for the incurred related costs or losses; if used to
compensate for the related costs or losses during future periods they shall be included in the
deferred income and included in the current profit and loss during the period when the related
costs or losses are recognized. Government subsidies measured at the nominal amount shall be
directly included in current profits and losses. The Company adopts the same treatment for those
transactions of similar government subsidies.The government subsidies related to daily activities shall be included in other incomes according
to the essence of economic business. Government subsidies irrelevant to daily activities are
included in non-operating revenue.For the government subsidies recognized to be refunded if the government subsidies are used to
offset the book value of the related assets when they are initially recognized the book value of
assets shall be adjusted. If there is deferred income concerned the government subsidies shall be
offset against the book balance of the deferred income and the excess shall be included in current
profits and losses. In other cases they shall be directly included in current profits and losses.
25. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be
included in current profit or loss as income tax expenses except that the deferred income taxes
related to an adjustment of goodwill due to a business merger or the transactions and matters
directly included in the owner's equity are included in the owner's equity.The Company shall recognize deferred income tax with the balance sheet liability method
according to the temporary differences between the book value of assets and liabilities and their
tax bases at the balance sheet date.
139Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Relevant deferred income tax liabilities shall be recognized for each taxable temporary difference
unless the taxable temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a
transaction with the following features: The transaction should not be a business merger and does
not impact accounting profit or taxable income at the time of the transaction (except for individual
transactions with equal taxable temporary differences and deductible temporary differences
resulting from the initial recognition of assets and liabilities);
(2) For taxable temporary differences associated with investments in subsidiaries associates and
joint ventures it can control the time of the reversal of the temporary difference and likely the
temporary difference will not reverse in the foreseeable future.For deductible temporary differences as well as the deductible losses and tax deductions that can
be carried forward to the next year except for the deductible temporary differences incurred in
following transactions the Company recognizes the deferred income tax assets to the extent that it
is likely that future taxable income will be available for deducting the deductible temporary
differences deductible losses and tax deductions:
(1) The transaction should not be a business merger and does not impact accounting profit or
taxable income at the time of the transaction (except for individual transactions with equal taxable
temporary differences and deductible temporary differences resulting from the initial recognition
of assets and liabilities);
(2) For deductible temporary differences associated with investments in subsidiaries associates
and joint ventures if the following conditions are satisfied at the same time corresponding
deferred tax assets are recognized: The temporary difference will likely be reversed in the
foreseeable future and taxable income will likely be available in the future for deducting the
deductible temporary differences.On the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax
rates that are expected to apply to the period when the asset is recovered or the liability is settled
and reflect the income tax effect of the method of the expected recovery of assets and settlement
of liability on the balance sheet date.On the balance sheet date the Company reviews the book value of deferred tax assets. If it is
likely that sufficient taxable profits will not be available in future periods to deduct the benefit of
the deferred tax assets the book value of the deferred tax assets will be reduced. Any such
reduction in amount is reversed to the extent that it becomes probable that sufficient taxable
incomes will be available.On a balance sheet date the deferred income tax assets and liabilities are presented in the net
value after offsetting when the following conditions are met at the same time:
140Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) The taxpayer has the legal right of income tax assets and liabilities in the current period settled
at the net amount;
(2) Deferred income tax assets and deferred income tax liabilities are related to the income taxes
levied by the same tax collection agency on the same taxpayer within the Company.
26. Leases
(1) Accounting treatment method for lease as the lessee
On the commencement date of the lease term the Company shall recognize the right-of-use assets
and the lease liabilities for all leases except for the short-term leases and low-value asset leases
that are subject to simplified treatment.Lease liabilities shall be initially measured at the present value calculated by the interest rate
implicit in lease according to the unpaid lease payment on the commencement date of the lease
term. If the interest rate implicit in lease cannot be determined the incremental borrowing rate
shall be used as the discount rate. Lease payments include fixed payments and substantially fixed
payments; the amount related to lease incentive (if any) shall be deducted; variable lease
payments that depend on an index or rate; the exercise price of a purchase option provided that
the lessee reasonably determines that the option will be exercised; payments required to exercise
the lease termination option provided that the lease term reflects that the lessee will exercise the
lease termination option; payments expected to be made based on the guaranteed residual value
provided by the lessee. The interest expenses of the lease liabilities within each lease term shall be
calculated subsequently according to the fixed periodic rate and included in current profits and
losses. The variable lease payment that is not included in the measurement of lease liabilities is
included in the current profit and loss when it actually occurs.Short-term lease
Short-term lease refers to a lease with a lease term of not more than 12 months on the
commencement date of the lease term except for the lease containing the purchasing right.The Company includes the payment amount of short-term leases into relevant asset costs or
current profits and losses by the straight-line method at each period within the lease term.For short-term leases the Company selects the above-simplified treatment method for the items
meeting the short-term lease conditions in the following asset types according to the category of
leased assets.Low-value asset lease
A low-value asset lease refers to a lease with a value lower than RMB 40000 when an individual
leased asset is brand new.
141Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company includes the payment amount of low-value asset leases into relevant asset costs or
current profits and losses by the straight-line method at each period within the lease term.For low-value asset leases the Company selects the above simplified treatment method according
to the specific conditions of each lease.Lease change
If the lease changes and meets the following conditions at the same time the Company will take
the lease change as a separate lease for the accounting treatment: * The lease change expands
the lease scope by increasing the right to use one or more leased assets and * The increased
consideration is equivalent to the amount by adjusting the separate price of the expanded lease
scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment the Company shall
on the effective date of the lease change reallocate the consideration of the changed contract
redetermine the lease term and remeasure the lease liabilities according to the changed lease
payment and the present value calculated by the revised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change the Company
will correspondingly reduce the book value of right-of-use assets and include relevant profits or
losses from partial or complete termination of the lease in current profits and losses.If the lease liabilities are remeasured due to other lease changes the Company will adjust the
carrying amount of right-of-use assets accordingly.
(2) Accounting treatment method for lease as the lessor
When the Company is the lessor the lease that substantially transfers all risks and rewards related
to the ownership of the assets is recognized as a finance lease and leases other than finance leases
are recognized as operating leases.Financial lease
In a finance lease at the commencement of the lease term the Company takes the net investment
in a lease as the entry value of the finance lease receivables and the net investment in a lease is
the sum of the unguaranteed residual value and the present value of the lease receipts not yet
received at the commencement of the lease term discounted at the interest rate implicit in the lease.The Company as the lessor calculates and recognizes interest income in each lease term at a
fixed periodic rate. Variable lease payments obtained by the Company as the lessor but not
considered in the measurement of net investment in leases are recognized in current profits and
losses when actually incurred.The derecognition and impairment of finance lease receivables shall be subject to accounting
treatment according to the Accounting Standards for Business Enterprises No. 22—Recognition
142Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
and Measurement of Financial Instruments and the Accounting Standards for Business
Enterprises No. 23—Transfer of Financial Assets.Operating leasing
Lease income from operating leases is included in current profits and losses by the Company as
per the straight-line method in different stages over the lease term. The occurred initial direct cost
related to the operating lease shall be capitalized amortized within the lease term according to the
same base with the recognition of rent revenue and included in the current profits and losses by
stages. The variable lease receipts obtained by the Company related to operating leases and not
charged to the lease receipts shall be included in current profits and losses when actually incurred.Lease change
If there is a change in the operating lease the Company will take it as a new lease from the
effective date of the change to carry out accounting treatment and the lease receipts received in
advance or receivable related to the lease before the change will be regarded as the collected
amount for the new lease.If the finance lease changes and meets the following conditions the Company will take the
change as a separate lease for accounting treatment: * The change expands the lease scope by
increasing the right to use one or more leased assets; and * The increased consideration is
equivalent to the amount by adjusting the separate price of the expanded lease scope according to
the contract.If the change of finance lease is not accounted for as a separate lease the Company shall deal
with the changed lease based on the following circumstances: * If the change takes effect on the
commencement date of the lease and the lease is classified as an operating lease the Company
shall take it as a new lease for the accounting treatment from the effective date of lease change
and take the net lease investment made before the effective date of the lease change as the book
value of the leased asset; * If the change takes effect on the commencement date of the lease
and the lease is classified as a finance lease the Company shall carry out accounting treatment
according to the regulations on modifying or renegotiating contracts described in Accounting
Standards for Enterprises No. 22 — Recognition and Measurement of Financial Instruments.
27. Other significant accounting policies and accounting estimates
The Company continuously evaluates the significant accounting estimates and key assumptions
adopted based on historical experience and other factors including reasonable expectations for
future events. Significant accounting estimates and critical assumptions that may lead to a major
adjustment of the book value of assets and liabilities in the next accounting year are listed as
follows:
Classification of financial assets
143Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Significant judgments involved in determining the classification of financial assets of the
Company include the analysis of business models and contract cash flow characteristics.The Company determines the business model of managing financial assets at the level of financial
asset portfolios considering the way of evaluating and reporting financial asset performance to
key executives the risks affecting the financial asset performance and their management methods
and the way for the relevant business management personnel to obtain the remuneration.When assessing whether the contract cash flow of financial assets is consistent with the basic loan
arrangement the Company has the following main judgments: Whether the principal may change
in the time distribution or amount in the duration due to prepayment and other reasons; whether
the interest includes only the time value of money credit risks other basic borrowing risks and
consideration with costs and profits. For example whether the amount paid in advance only
reflects the unpaid principal and the interest based on the unpaid principal and the reasonable
compensation paid due to the early termination of the contract.Measurement of expected credit loss of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the default risk
exposure and the expected credit loss rate of accounts receivable and determines the expected
credit loss rate based on default probability and the loss given default. In determining the
expected credit loss rate the Company uses the internal historical credit loss experience and other
data and adjusts the historical data according to the current situation and forward-looking
information. When considering forward-looking information the indicators used by the Company
include risks of economic downturns as well as changes in the external market environment
technological environment and customer conditions. The Company regularly monitors and
reviews the assumptions related to the calculation of the expected credit loss.Deferred income tax assets
To the extent that there will probably be sufficient taxable profits to offset the losses deferred
income tax assets shall be recognized based on all unused tax losses. This requires the
management to use a large number of judgments to estimate the time and amount of future taxable
profits and determine the amount of deferred income tax assets that should be recognized in
combination with tax planning strategies.Determination of the fair value of unlisted equity investment
The fair value of unlisted equity investments is the estimated future cash flows discounted using
current discount rates for projects with similar terms and risk characteristics. This valuation
involves uncertainty because it requires the Company to estimate expected future cash flows and
discount rates. Under limited circumstances if the information for determining the fair value is
insufficient or the range of possible estimates of fair value is wide and the cost represents the best
estimate for the fair value within this range such cost could represent its appropriate estimate for
the fair value within this distribution range.
144Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
28. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
? Applicable□ Not applicable
Accounting Standards for Business Enterprises Interpretation No.17
In November 2023 the Ministry of Finance issued the Interpretation of Accounting Standards for
Business Enterprises No.17 (Accounting No.212023) (hereinafter referred to as "Interpretation
No.17").Division of current liabilities and non-current liabilities
Interpretation No.17 the right of the enterprise to delay its repayment to more than one year after
the balance sheet date may depend on whether the enterprise follows the conditions specified in
the loan arrangement (hereinafter referred to as the conditions of contract). The conditions of
contract on or before the balance sheet date even after evaluating the compliance after the
balance sheet date (if the conditions of contract are assessed after the balance sheet date) affects
the judgment of the rights on the balance sheet date thus affecting the liquidity division of the
liabilities on the balance sheet date. The conditions of contract that the enterprise shall follow
after the balance sheet date (if the conditions of contract are assessed based on the financial
position of the 6 months after the balance sheet date) do not affect the judgment of the existence
of the right on the balance sheet date and has nothing to do with the liquidity division of the
liability on the balance sheet date.If the clause of the liabilities causes the enterprise to repay by delivering its own equity
instrument at the choice of the counterparty if the option is classified as an equity instrument
according to the guidelines and is recognized as a separate part of the equity component of the
compound financial instrument the clause shall not affect the liquidity division of the liabilities.The Company shall implement this regulation from January 12024 and adjust the comparable
period information.The adopted Interpretation No.17 did not have a material impact on the Company's financial
position and operating results.Disclosure of provider financing arrangements
Interpretation No.17 stipulates that the supplier financing arrangement shall disclose: (1) the
terms and conditions of the supplier financing arrangement (such as the extension of the payment
term and the guarantee provision etc.). (2) * Listed items and book amount in the balance sheet
of the financial liabilities belonging to the supplier financing arrangement. * If the supplier has
received payment from the financing provider it shall disclose the listed items and book amounts
of the corresponding financial liabilities; the payment maturity date of the* and related financial
liabilities and the payment maturity date of comparable accounts payable not part of the supplier
145Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
financing arrangement. If the scope of payment maturity date is large the enterprise shall also
disclose explanatory information or additional interval information about these intervals; (3) the
type and influence of current changes in the book amount of relevant financial liabilities that do
not involve cash receipts and payments (including business mergers exchange rate changes and
other transactions or matters that do not require the use of cash or cash equivalents).When disclosing liquidity risk information in accordance with the requirements of Accounting
Standards for Business Enterprises No.37-Financial Instruments enterprises should consider
whether it has obtained or has obtained credit to provide deferred payment to enterprises or
advance payment to their suppliers through supplier financing arrangements. When identifying
the concentration of liquidity risk according to the requirements of the relevant standards the
enterprises should consider the factor that the supplier financing arrangements cause the
enterprises to concentrate part of their financial liabilities payable to the suppliers on the financing
provider.The Company shall implement this regulation from January 12024. At the first implementation of
this provision the Company is not required to disclose the information concerning the
comparable period and the beginning information required by* and* under items (2).The adopted Interpretation No.17 did not have a material impact on the Company's financial
position and operating results.Accounting Standards for Business Enterprises Interpretation No.18
On December 31 2024 the Ministry of Finance of the Ministry of Finance issued the
Interpretation of Accounting Standards for Business Enterprises No.18 (Accounting No.242024
Interpretation No.18).Accounting treatment of assurance type quality assurance that does not belong to single
performance obligations
Explain no. 18 in the accounting of guaranteed quality assurance liabilities enterprises shall be
according to the "accounting standards for enterprises no. 13-contingent matters" relevant
provisions according to the estimated liabilities amount debit "operating cost "other operating
cost" credit "estimated liabilities" account in the balance sheet and corresponding "operating
costs" and "other current liabilities" "non-current liabilities" "estimated liabilities" due within
one year.The Company shall implement the provisions from the date of issuance of Interpretation No.18
and make retroactive adjustments.The execution Interpretation No.18 does not have a material impact on the Company's financial
position and operating results.
146Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(2) Changes in material accounting estimates
□Applicable □ Not applicable
Unit: RMB
Name of significantly Point of
Changes of accounting estimates and reasons affected items in the commencement of Affected amount
statements application
In response to the Company's business development
and fixed asset management needs and to fairly
reflect its financial position and operating results the
Accumulated depreciation September 1 2024 1623505.35
Company has changed its accounting estimates for
the depreciation period of fixed assets to better align
with their actual service life.In response to the Company's business development
and fixed asset management needs and to fairly
reflect its financial position and operating results the
Total profits September 1 2024 -1623505.35
Company has changed its accounting estimates for
the depreciation period of fixed assets to better align
with their actual service life.In response to the Company's business development
and fixed asset management needs and to fairly
reflect its financial position and operating results the
Income tax expenses September 1 2024 -402428.57
Company has changed its accounting estimates for
the depreciation period of fixed assets to better align
with their actual service life.In response to the Company's business development
and fixed asset management needs and to fairly
reflect its financial position and operating results the
Net profit September 1 2024 -1221076.78
Company has changed its accounting estimates for
the depreciation period of fixed assets to better align
with their actual service life.Before this change in accounting estimates the depreciation period of fixed assets is:
Category Service life Residual value Annual depreciation(year) rate (%) rate (%)
Premises and buildings 10 35-40 03 10 2.43-2.77
Including: Decoration of self-owned houses 10 0 10
Machinery equipment 12 3 8.08
Electronic equipment 5-7 3 13.86-19.4
Transportation equipment 7 3 13.86
Office and other equipment 7 3 13.86
After this change in accounting estimates the depreciation period of fixed assets is:
Category Service life (year) Residual value Annual depreciation raterate (%) (%)
Premises and buildings 10 35-40 03 10 2.43-2.77
Including: Decoration of self-owned
houses 10 0 10
Machinery equipment 10 3 9.70
147Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Electronic equipment 3 3 32.33
Transportation equipment 7 3 13.86
Office and other equipment 5 3 19.40
(3) Conditions of the first implementation of new accounting standards from 2024 to adjust the relevant items in financial
statements at the beginning of the first implementation year
□ Applicable□ Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax category Tax basis Tax rate
Taxable value-added amount (Tax payable is calculated using
Value-added tax the taxable sales amount multiplied by the applicable tax rate 13% 9% 5% 6% and 3%
less deductible input tax of the current period)
Urban maintenance and
Actually paid turnover tax 7%
construction tax
Corporate income tax Taxable income 25% 20%
For taxation according to price the taxes payable shall be
calculated based on 1.2% of the remaining price after deducting
Property tax 30% of the original value of house properties; for taxation 1.2%12%
according to lease the taxes payable shall be calculated based on
12% of the rent revenue.
Educational surcharges Actually paid turnover tax 3%
Local educational surcharges Actually paid turnover tax 2%
Disclosure statement of taxable entities with different corporate income tax rates
Name of taxable entity Income tax rate
Shenzhen Tellus Chuangying Technology Co. Ltd. 20%
Shenzhen Bao'an Shiquan Industry Co. Ltd. 20%
Shenzhen SDG Tellus Real Estate Co. Ltd. 20%
Shenzhen Automobile Industry Supply and Marketing Company 20%
Shenzhen Xinyongtong Motor Vehicle Inspection Equipment Co. Ltd. 20%
Shanghai Fanyue Diamond Co. Ltd. 20%
Shenzhen Huari Anxin Automobile Inspection Co. Ltd. 20%
Other taxable entities other than the above 25%
2. Tax preference
* Corporate income tax
According to the Announcement on Further Implementing Preferential Income Tax Policies for
Small and Micro Enterprises (Announcement [2022] No.13 of the Ministry of Finance and the
State Taxation Administration) from January 1 2022 to December 31 2024 for small micro-
profit enterprises the portion of their annual taxable income exceeding RMB 1 million but not
exceeding RMB 3 million shall be calculated at a reduced rate of 25% in their taxable income
and they shall pay enterprise income tax at a rate of 20%. According to the Announcement on
148Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Implementing Preferential Income Tax Policies for Small and Micro Enterprises and Individual
Businesses (Announcement [2023] No.6 of the Ministry of Finance and the State Administration
of Taxation) from January 1 2023 to December 31 2024 the portion of their annual taxable
income but not exceeding RMB 1 million shall be calculated at a reduced rate of 25% in their
taxable income and they shall pay enterprise income tax at a rate of 20%. The subsidiaries of the
Company including Tellus Chuangying Bao'an Shiquan Tellus Real Estate Company
Automobile Supply and Marketing Company Shanghai Fanyue Xinyongtong Testing and Huari
Anxin enjoy the above tax preferences.* Value-added tax
According to the Notice of the State Administration of Taxation on Adjusting the Relevant Tax
Policies of Diamonds and Shanghai Diamond Exchange (CS [2006] No. 65) taxpayers are
exempted from import VAT for rough diamonds sold through Shanghai Diamond Exchange to the
domestic market; for finished diamonds sold by taxpayers through Shanghai Diamond Exchange
to the domestic market the part with an actual import VAT burden exceeding 4% shall be
refunded upon collection by the customs. In the domestic link taxpayers shall deduct the input tax
based on the VAT amount indicated on the tax payment receipt issued by the customs. After
taxpayers follow the policy of VAT exemption and refund-upon-collection for diamonds sold to
the domestic market through the Shanghai Diamond Exchange diamonds sold to the domestic
market will be managed by the customs per current regulations when they leave the Shanghai
Diamond Exchange. Shanghai Fanyue Diamond Co. Ltd. the Company's subsidiary is a member
of the Shanghai Diamond Exchange and enjoys the above tax preferences when importing
finished diamonds through the Shanghai Diamond Exchange.* Educational surcharges
According to the Notice of the State Administration of Taxation on Expanding the Scope of
Exemptions for Certain Government Funds (CS [2016] No. 12) the exemption threshold for the
Education Surcharge Local Education Surcharge and Water Conservancy Construction Fund has
been raised. Specifically the exemption now applies to taxpayers with monthly sales or turnover
not exceeding RMB 100000 (or quarterly sales or turnover not exceeding RMB 300000 for those
paying taxes quarterly) an increase from the previous threshold of RMB 30000 per month (or
RMB 90000 per quarter). Shenzhen Huari Automobile Sales and Service Co. Ltd. a subsidiary
of the Company enjoys the above tax preference if its monthly sales or turnover does not exceed
RMB 100000.VII. Notes to Consolidated Financial Statements
1. Cash at bank and on hand
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 20879.87 17215.98
Bank deposits 280040887.67 120961253.61
149Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Other cash at bank and on hand 97909592.15 99362492.05
Total 377971359.69 220340961.64
Other notes:
The cash at the bank and on hand with limited use rights by the Company mainly includes note margins and gold leasing and
futures and options margins.The details of restricted cash at bank and on hand are as follows:
Item Ending balance Ending Balance of the Previous Year
Security deposits for notes payable 33113263.10 -
Futures and options account margin 22848540.40 8188990.60
Gold leasing security deposits and interests 20069638.91 51328583.35
Amount under judicial control 663948.65 600000.00
Total 76695391.06 60117573.95
2. Trading financial assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit or loss 165630834.06 206294931.94
Including:
Structured deposits and finance products 165630834.06 131495916.67
Equity instrument investment 74799015.27
Including:
Total 165630834.06 206294931.94
3. Derivative financial assets
Unit: RMB
Item Ending balance Beginning balance
Hedging instruments—derivative financial assets in designated
292078.00298320.00
hedging relationship
Total 292078.00 298320.00
4. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 44225898.09 100107755.14
1-2 years 2520681.03 555132.97
2 to 3 years 508387.31
150Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Over 3 years 48781485.16 48749943.16
More than 5 years 48781485.16 48749943.16
Total 96036451.59 149412831.27
Other notes: The inconsistency in the logic of account receivable ages over three years is due to the consolidation of Shenzhen
SDG Huari Automobile Enterprise Co. Ltd. on December 31 2024.
(2) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Account
s
receivab
le with
487814487814487465487465
provisio 50.79% 100.00% 0.00 32.63% 100.00% 0.00
85.1685.1683.1683.16
n for bad
debts on
a single
basis
Includ
ing:
Account
s
receivab
le for
which 472549 690899. 465640 100666 103049 996357
49.21%1.46%67.37%1.02%
provisio 66.43 29 67.14 248.11 6.59 51.52
n for bad
debts is
made by
portfolio
Includ
ing:
Includin
g:
Portfolio
354981573331.349248413036436870.408667
of 36.96% 1.62% 27.64% 1.06%
39.360208.3439.855169.34
leasing
and
other
Jewelry
sales 117568 117568. 116392 593626 593626. 587689
12.24%1.00%39.73%1.00%
business 27.07 27 58.80 08.26 08 82.18
portfolio
960364494723465640149412497770996357
Total 100.00% 51.51% 100.00% 33.32%
51.5984.4567.14831.2779.7551.52
151Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Provision for bad debts made on an individual basis
Unit: RMB
Beginning balance Ending balance
Description Provisions for Provisions for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
Long account
Shenzhen Jinlu receivable age
Industry & 9846607.00 9846607.00 9846607.00 9846607.00 100.00% and expected to
Trade Co. Ltd. be
unrecoverable
Guangdong Long account
Zhanjiang receivable age
Samsung 4060329.44 4060329.44 4060329.44 4060329.44 100.00% and expected to
Automobile be
Co. Ltd. unrecoverable
Long account
receivable age
Wang
2370760.40 2370760.40 2370760.40 2370760.40 100.00% and expected to
Changlong
be
unrecoverable
Huizhou
Long account
Jiandacheng
receivable age
Road and
2021657.70 2021657.70 2021657.70 2021657.70 100.00% and expected to
Bridge
be
Engineering
unrecoverable
Co. Ltd.Long account
Guangdong receivable age
GW Holdings 1862000.00 1862000.00 1862000.00 1862000.00 100.00% and expected to
Group Co. Ltd. be
unrecoverable
Long account
receivable age
Jiangling
1191059.98 1191059.98 1191059.98 1191059.98 100.00% and expected to
Motors Factory
be
unrecoverable
Long account
Yangjiang
receivable age
Automobile
1150000.00 1150000.00 1150000.00 1150000.00 100.00% and expected to
Trading Co.be
Ltd.unrecoverable
Long account
receivable age
Others 26244168.64 26244168.64 26279070.64 26279070.64 100.00% and expected to
be
unrecoverable
Total 48746583.16 48746583.16 48781485.16 48781485.16
Provision for bad debts drawn by portfolio: Portfolio of leasing and other
Unit: RMB
Ending balance
Description
Book balance Provisions for bad debts Proportion of provision
Within 1 year 32469071.02 322296.93 0.99%
1-2 years 2520681.03 126034.06 5.00%
2 to 3 years 508387.31 125000.03 24.59%
152Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Over 3 years
Total 35498139.36 573331.02
Provision for bad debts drawn by portfolio: portfolio of jewelry sales business
Unit: RMB
Ending balance
Description
Book balance Provisions for bad debts Proportion of provision
Within 1 year 11756827.07 117568.27 1.00%
Total 11756827.07 117568.27
Whether to accrue bad debt provision of accounts receivable according to expected credit loss:
□Applicable □ Not applicable
Unit: RMB
Stage I Stage II Stage III
Expected credit loss
Provisions for bad debts Expected credit Expected credit loss throughoutthroughout the duration Total
losses for the next 12 the duration (credit impairment
(no credit impairment
months has occurred)
occurs)
Balance on January 1
1030496.5948746583.1649777079.75
2024
Balance on January 1
2024 in the current period
Reversal in the current
339597.30339597.30
period
Other changes 34902.00 34902.00
Balance as of December
690899.2948781485.1649472384.45
312024
(3) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Type Beginning balance Ending balance
Provision Recovery or reversal Write-off Others
Provisions for bad
49777079.75339597.3034902.0049472384.45
debts
Total 49777079.75 339597.30 34902.00 49472384.45
(4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers
Unit: RMB
Period-end balance of
Proportion in total
Period-end Period-end Period-end balance bad debt proportion
ending balance of
balance of balance of of accounts of accounts receivable
Company name accounts
accounts contract receivable and and impairment
receivable and
receivable assets contract assets provision of
contractual assets
contractual assets
Shenzhen Jinlu
9846607.009846607.0010.25%9846607.00
Industry & Trade
153Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd.Henan Post and
Telecommunications 8788494.90 8788494.90 9.15% 87884.95
Technology Co. Ltd.Guangdong
Zhanjiang Samsung 4060329.44 4060329.44 4.23% 4060329.44
Automobile Co. Ltd.Shenzhen Showking
Jewelry Industry Co. 2573309.28 2573309.28 2.68% 257330.93
Ltd.Wang Changlong 2370760.40 2370760.40 2.47% 2370760.40
Total 27639501.02 27639501.02 28.78% 16622912.72
5. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 1305581.86
Other receivables 8081783.33 11077935.06
Total 8081783.33 12383516.92
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or the investee) Ending balance Beginning balance
China Pufa Machinery Industry Co. Ltd. 1305581.86
Total 1305581.86
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Whether impairment
Project (or the has occurred and the
Ending original value Account receivable age Reason for no recovery
investee) basis for determining
impairment
The company has huge
losses in its financial
positions and operating
China Pufa Machinery conditions and the
1305581.86 2-3 years Not paid yet
Industry Co. Ltd. dividends receivable
may not be recovered
so full impairment is
accrued.Total 1305581.86
3) Classification and disclosure through the method for recognizing bad debt
□Applicable □ Not applicable
154Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Provisio
n for bad
debts 130558 130558
100.00%100.00%0.00
made on 1.86 1.86
a single
basis
Incl
uding:
Incl
uding:
130558130558
Total 100.00% 100.00% 0.00
1.861.86
Provision for bad debts made on an individual basis
Unit: RMB
Beginning balance Ending balance
Description Provisions for Provisions for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
China Pufa
The company's
Machinery
1305581.86 1305581.86 1305581.86 100.00% financial
Industry Co.position is poor
Ltd.Total 1305581.86 1305581.86 1305581.86
Bad debt provision made according to the general model of expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provisions for bad debts Expected credit throughout the duration throughout the duration Total
losses for the next 12
(no credit impairment (credit impairment has
months
occurs) occurred)
Balance on January 1 2024
in the current period
Provision in the current
1305581.861305581.86
period
Balance as of December 31
1305581.861305581.86
2024
Changes in book balance with significant amount changed of loss provision in the reporting period
□Applicable □ Not applicable
China Pufa Machinery Industry Co. Ltd. has huge losses in its financial position and operating conditions and
the dividends receivable may not be recovered so full impairment is accrued.
155Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
4) Bad debt provision provided recovered or reversed in the current period
Unit: RMB
Amount of change during the current period
Beginning
Type Recovery or Write-off or Ending balancebalance Provision Other changes
reversal cancellation
Provisions for
1305581.861305581.86
bad debts
Total 1305581.86 1305581.86
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of payment Period-end book balance Period-beginning book balance
Temporary payments receivable 57088093.88 58543570.60
Deposits and security deposits 3195494.08 3092523.97
Total 60283587.96 61636094.57
(2) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 5141214.58 6100909.61
1-2 years 3209073.66 982244.61
2 to 3 years 916546.35 192615.11
Over 3 years 51016753.37 54360325.24
3 to 4 years 249895.55
More than 5 years 51016753.37 54110429.69
Total 60283587.96 61636094.57
3) Classification and disclosure through the method for recognizing bad debt
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Provisio
n for bad 538195 516126 220686 522245 500176 220686
debts 89.28% 95.90% 84.73% 95.77%47.79 83.54 4.25 55.56 91.31 4.25
made on
a single
156Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
basis
Incl
uding:
Provisio
n for bad
debts
646404589121.587491941153540468.887107
made on 10.72% 9.11% 15.27% 5.74%
0.17099.089.01200.81
a
portfolio
basis
Incl
uding:
Account
receivab 326854 230887. 303765 631901 433367. 588564
5.42%7.06%10.25%6.86%
le age 6.09 66 8.43 5.04 62 7.42
portfolio
Portfolio
of
deposit
and 319549 358233. 283726 309252 107100. 298542
5.30%11.21%5.02%3.46%
security 4.08 43 0.65 3.97 58 3.39
deposit
receivab
le
602835522018808178616360505581110779
Total 100.00% 86.59% 100.00% 82.03%
87.9604.633.3394.5759.5135.06
Provision for bad debts made on a portfolio basis:
Unit: RMB
Ending balance
Description
Book balance Provisions for bad debts Proportion of provision
Account receivable age portfolio 3268546.09 230887.66 7.06%
Portfolio of deposit and security deposit receivable 3195494.08 358233.43 11.21%
Total 6464040.17 589121.09
Explanation of the basis for determining the portfolio:
Bad debt provision made according to the general model of expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provisions for bad debts Expected credit losses throughout the duration throughout the duration Total
for the next 12
(no credit impairment (credit impairment has
months
occurs) occurred)
Balance on January 1 2024 540468.20 50017691.31 50558159.51
Balance on January 1 2024
in the current period
Provision in the current
114397.5477356.71191754.25
period
Reversal in the current
67387.341148160.361215547.70
period
Other changes 1642.69 2665795.88 2667438.57
Balance as of December
589121.0951612683.5452201804.63
312024
157Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Division basis at each stage and proportion of bad debt provision accrual
Changes in book balance with significant amount changed of loss provision in the reporting period
□ Applicable□ Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Beginning
Type Recovery or Write-off or Ending balancebalance Provision Others
reversal cancellation
Provisions for
50558159.51191754.251215547.702667438.5752201804.63
bad debts
Total 50558159.51 191754.25 1215547.70 2667438.57 52201804.63
5) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Period-end balance
Account
Company name Nature Ending balance ending balance of of provision for
receivable age
other receivables bad debts
China Automobile
South China
Intercourse funds 9832956.37 Over 3 years 16.31% 9832956.37
Automobile Sales
Co. Ltd.Shenzhen Nanfang
Industry and Trade Intercourse funds 7359060.75 Over 3 years 12.21% 7359060.75
Industrial Co. Ltd.Shenzhen Zhonghao
Intercourse funds 5000000.00 Over 3 years 8.29% 5000000.00
(Group) Co. Ltd.Shenzhen Kaifeng
Special Automobile Intercourse funds 4413728.50 Over 3 years 7.32% 2206864.25
Industry Co. Ltd.Shenzhen Jinbeili Collection and
Electric Appliance payment on behalf 2706983.51 Over 3 years 4.49% 2706983.51
Co. Ltd. of others
Total 29312729.13 48.62% 27105864.88
6. Prepayments
(1) Prepayments listed by account receivable age
Unit: RMB
Ending balance Beginning balance
Account receivable age
Amount Proportion Amount Proportion
Within 1 year 795544.97 99.77% 38395924.17 99.85%
1-2 years 261.00 0.03% 45984.79 0.12%
Over 3 years 1603.94 0.20% 12525.94 0.03%
Total 797409.91 38454434.90
158Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Explanation of reasons for delayed settlement of important prepayments with account receivable age over 1 year:
None
(2) Prepayments with top five period-end balance collected as per the object of prepayment
Name of debtor Book balance Proportion in total Provisions forprepayments bad debts
Shenzhen Branch of Guoren Property and Casualty Insurance Co. Ltd. 162704.37 20.40% -
Shenzhen Nanfang Chengtong Logistics Co. Ltd. 138985.00 17.43%
Shenzhen Wuhua Tianbao Software Co. Ltd. 115200.00 14.45% -
Guangdong Mingfa Precious Metal Co. Ltd. 102906.64 12.91% -
Shenzhen Tiebao Cabinet Co. Ltd. 78900.00 9.89% -
Total 598696.01 75.08% -
7. Inventories
Whether the Company needs to comply with the disclosure requirements for real estate industry
No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Provision for
decline in the Provision for
value of decline in the
Item inventories or
value of
Book balance impairment Book value Book balance inventories or Book value
provisions of impairment
contract provisions of
performance contract
cost performance cost
Raw materials 8281211.63 8281211.63 89296099.66 89296099.66
Goods in stocks 29558580.97 29094882.38 463698.59 23817853.14 23817853.14
Hedged items 114856873.15 114856873.15 85802395.07 85802395.07
Consigned
processing 327656.05 327656.05
materials
Goods sold on
a commission 3830408.18 3830408.18 2999683.10 2999683.10
basis
Total 156527073.93 29094882.38 127432191.55 202243687.02 23817853.14 178425833.88
The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-
discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.
(2) Provision for decline in the value of inventories/contract performance cost impairment
Unit: RMB
Increase in the current period Decrease in the current period
Item Beginning balance Reversal or Ending balance
Provision Others Others
write-off
Goods in stocks 23817853.14 5423369.69 146340.45 29094882.38
159Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Total 23817853.14 5423369.69 146340.45 29094882.38
8. Non-current assets due within one year
Unit: RMB
Item Ending balance Beginning balance
Large-denomination certificates of deposit time deposits and
91587627.9455206250.00
interest due within 1 year
Total 91587627.94 55206250.00
(1) Creditors' investment due within one year
□ Applicable□ Not applicable
(2) Other debt investments due within one year
□ Applicable□ Not applicable
9. Other current assets
Unit: RMB
Item Ending balance Beginning balance
Input tax to be deducted 25711444.95 27618761.58
Taxes pre-paid 167748.29 1423927.12
Large-denomination certificates of deposit time deposits and interest 54969057.53 75791108.89
Unamortized expenses 313322.22
Advances offered for agency business 15582254.39
Total 96743827.38 104833797.59
10. Other debt investments
(1) Information on other debt investments
Unit: RMB
Accumula
ted
Changes impairme
Accumula
in fair nt
Interest ted
Beginnin Accrued value in Ending provision
Item adjustmen Costs changes Remarks
g balance interests the balance recognize
t in fair
current d in other
value
period comprehe
nsive
income
Transfera
ble large-
67627948472412
sum
8.608.76
certificate
of deposit
67627948472412
Total
8.608.76
160Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
11. Other equity instrument investments
Unit: RMB
Reasons for
Gains
Divide being
Gains Losses accumulate
Losses nd measured at
included in included in d into
accumulated incom designated
other other other
into other e fair value
Ending Beginning comprehen comprehensi comprehen
Item name comprehensive recogn with their
balance balance sive ve income sive
income at the ized in changes
income in in the income at
end of the the included in
the current current the end of
current period current other
period period the current
period comprehensi
period
ve income
Investment in
unlisted
0.00383317.67-383317.67-10176617.20
equity
instruments
Total 383317.67 -383317.67 -10176617.20
12. Long-term receivables
(1) Long-term receivables
Unit: RMB
Ending balance Beginning balance
Discount rate
Item Provisions Provisions
Book balance Book value Book balance Book value range
for bad debts for bad debts
Transactions
with related 6146228.91 6146228.91 6146228.91 6146228.91
parties
Total 6146228.91 6146228.91 6146228.91 6146228.91
(2) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Provisio
n for bad
debts 614622 614622 614622 614622
100.00%100.00%100.00%100.00%
made on 8.91 8.91 8.91 8.91
a single
basis
Incl
161Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
uding:
Incl
uding:
614622614622614622614622
Total 100.00% 100.00% 100.00% 100.00%
8.918.918.918.91
13. Long-term equity investments
Unit: RMB
Changes in the current period
Period Invest
Period - ment Adjust Period
- beginn Cashprofit ment Period -end
beginn ing divideor loss to -end balanc
Investe ing balanc Additi Reduc Other nd or Provisirecogn other balanc e of
e balanc e of onal ed equity profit on forized compr Others e impair
e impair invest invest change declare impairthroug ehensi (book ment
(book ment ment ments s d to be menth the ve value) provisi
value) provisi distribequity incom on
on utedmetho e
d
I. Joint ventures
Shenz
hen
Tellus-
Gmon 49250 21965 15000 56216
d 845.0 159.2 000.0 004.2
Invest 6 0 0 6
ment
Co.Ltd.Shenz
hen
Telixin
1330213686
g 38459
311.6903.3
Invest 1.77
07
ment
Co.Ltd.
62553223491500069902
Subtot
156.6750.9000.0907.6
al
6703
II. Associates
Shenz
hen
Renfu
Tellus 13958 15188
1230
Autom 330.9 925.5
594.66
obiles 1 7
Servic
e Co.Ltd.Shenz
hen
Tellus
162Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Autom
obile
Servic
e
Chain
Co.Ltd.Shenz
hen
Yongt
ong
Xinda
Testin
g
Equip
ment
Co.Ltd.Hunan
Chang
yang 1810 1810
Industr 540.70 540.70
ial Co.Ltd.Shenz
hen
Jieche
ng 3225 3225
Electro 000.00 000.00
nics
Co.Ltd.Shenz
hen
Xianda
o New 4751 4751
Materi 621.62 621.62
als
Co.Ltd.China
Autom
otive
Industr
y 40000 40000
Shenz 0.00 0.00
hen
Tradin
g Co.Ltd.Shenz
hen
Univer
sal 50000 50000
Standa 0.00 0.00
rd
Parts
Co.
163Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ltd.Shenz
hen
China
Autom
obile
South 2250 2250
China 000.00 000.00
Autom
obile
Sales
Co.Ltd.Shenz
hen
Bailiy
uan 1320 1320
Power 000.00 000.00
Supply
Co.Ltd.Shenz
hen
Yimin
2000020000
Auto
1.101.10
Tradin
g Co.Ltd.Shenz
hen
Torch
Spark 17849 63263 63263 17849
Plug .20 6.00 6.00 .20
Industr
y Co.Ltd.Shenz
hen
Hanli
High
19561956
Tech
000.00000.00
Ceram
ics
Co.Ltd.Shenz
hen
Nanfa
ng 6700 6700
Autom 000.00 000.00
obile
Repair
Center
13958231311518823131
Subtot 1863 63263
330.9012.6925.5012.6
al 230.66 6.00
1272
Total 76511 23131 24212 15632 85091 23131
164Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
487.5012.6981.6636.0833.2012.6
723002
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses
□ Applicable□ Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the information or external information used
in the impairment test of previous years
Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in that year
Other notes:
14. Investment properties
(1) Investment properties measured at cost
□Applicable □ Not applicable
Unit: RMB
Item Premises and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 1104591317.70 95667082.86 1200258400.56
2. Amount increase in the
178673271.38178673271.38
current year
(1) Outsourcing
(2) Transfer from
inventory/fixed
assets/construction in progress
(3) Increase from
178673271.38178673271.38
business merger
3. Decrease in the current
708715.60708715.60
period
(1) Disposal
(2) Other transfer-out 708715.60 708715.60
4. Ending balance 1282555873.48 95667082.86 1378222956.34
II. Accumulated depreciation and
accumulated amortization
1. Beginning balance 185791265.90 6329792.86 192121058.76
2. Amount increase in the
85326816.121115448.3686442264.48
current year
(1) Provision or
30561057.741115448.3631676506.10
amortization
(2) Changes in consolidation
54765758.3854765758.38
scope
3. Decrease in the current
112500.00112500.00
period
165Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Disposal
(2) Other transfer-out 112500.00 112500.00
4. Ending balance 271005582.02 7445241.22 278450823.24
III. Impairment provision
1. Beginning balance
2. Amount increase in the
current year
(1) Provision
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 1011550291.46 88221841.64 1099772133.10
2. Beginning book value 918800051.80 89337290.00 1008137341.80
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses
□ Applicable□ Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the information or external information used
in the impairment test of previous years
Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in that year
Other notes:
(2) Investment properties measured at fair value
□ Applicable□ Not applicable
(3) Investment properties whose property certificates are not obtained
Unit: RMB
Item Book value Reasons for failure to obtain the property certificate
The property ownership certificate has not been handled due to historical
CNNC office building 3723631.89
reasons.The property ownership certificate has not been handled due to historical
Shops in Building 12 Sungang 15287.19
reasons.The property ownership certificate has not been handled due to historical
Building 12 Sungang 5231.57
reasons.Total 3744150.65
166Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
15. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 70699928.84 78935843.49
Disposal of fixed assets 63754.41
Total 70763683.25 78935843.49
(1) Fixed assets
Unit: RMB
Office and
Premises and Machinery Transportatio Electronic Fixed asset
Item other Total
buildings equipment n equipment equipment decoration
equipment
I. Original
book value:
1.
218581348.16398875.3254067224.
Beginning 2086527.73 7934543.38 1141459.06 7924470.72
20746
balance
2.
Amount
11319374.7
increase in 79266.00 5125654.81 1116476.65 4267446.58 427835.53 302695.18
5
the current
year
(1)
79266.00150265.49692144.587728.73929404.80
Purchase
(2)
Transfer
from
construction
in progress
(3)
Increase
10389969.9
from 5125654.81 966211.16 3575302.00 427835.53 294966.45
5
business
merger
3.
Decrease in
191120.8587363.203220345.76850984.064349813.87
the current
period
(1)
Disposal or 191120.85 87363.20 3220345.76 850984.06 4349813.87
scrapping
4.
218469493.21437166.9261036785.
Ending 3203004.38 8981644.20 1569294.59 7376181.84
35834
balance
II.Accumulated
depreciation
167Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
1.
149723225.169951331.
Beginning 7679528.26 1751569.49 5060533.11 860076.33 4876398.96
5166
balance
2.
Amount
18268994.1
increase in 5873830.18 4869553.68 898598.95 5057515.96 243866.14 1325629.27
8
the current
year
(1)
5873830.18988573.2954220.611905263.09-1085268.059907155.22
Provision
(2) Other
3880980.39844378.343152252.87243866.14240361.228361838.96
increases
3.
Decrease in
189170.8584837.202800450.79840214.573914673.41
the current
period
(1)
Disposal or 189170.85 84837.20 2800450.79 840214.57 3914673.41
scrapping
4.
155407884.12464244.7184305652.
Ending 2650168.44 7317598.28 1103942.47 5361813.66
84443
balance
III.Impairment
provision
1.
Beginning 3555385.70 736597.13 6165.00 455627.38 281382.73 144891.37 5180049.31
balance
2.
Amount
increase in 663552.47 55819.82 301719.29 183969.39 15505.02 1220565.99
the current
year
(1)
Provision
(2) Other
663552.4755819.82301719.29183969.3915505.021220565.99
increases
3.
Decrease in
369411.23369411.23
the current
period
(1)
Disposal or 369411.23 369411.23
scrapping
4.
Ending 3555385.70 1400149.60 61984.82 387935.44 465352.12 160396.39 6031204.07
balance
IV. Book
value
59506222.870699928.8
1.7572772.64490851.121276110.481853971.7914
168Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ending book
value
2.
65302736.978935843.4
Beginning 7982749.98 328793.24 2418382.89 2903180.39
99
book value
(2) Fixed assets leased out by operating lease
Unit: RMB
Item Ending book value
Premises and buildings 51461033.63
(3) Fixed assets whose property certificates are not obtained
Unit: RMB
Item Book value Reasons for failure to obtain the property certificate
The property ownership certificate has not been
Yongtong Building 19560136.03
handled due to historical reasons.The property ownership certificate has not been
Automobile Building 19423183.24
handled due to historical reasons.The property ownership certificate of the parking lot
Parking Lot of Tellus Building 6937664.36
cannot be handled.The property ownership certificate has not been
Floor 3-5 Plants 1# 2# and 3# Taoyuan Road 2496213.79
handled due to historical reasons.Transfer floor(s) of Tellus Building 1090719.80 Unable to apply for property ownership certificate
The property ownership certificate has not been
No.16 Apartment of Taohuayuan 884416.26
handled due to historical reasons.The property ownership certificate has not been
Warehouse 663180.37
handled due to historical reasons.
1/F Bao'an Commercial and Residential The property ownership certificate has not been
612921.08
Building handled due to historical reasons.The property ownership certificate has not been
Shuibei Zhongtian Building 604158.52
handled due to historical reasons.The property ownership certificate has not been
Warehouse of the Trade Department 41813.41
handled due to historical reasons.The property ownership certificate has not been
Shops Plants No. 5-7 Buxin 24948.02
handled due to historical reasons.The property ownership certificate has not been
Songquan Apartment (mixed) 10086.79
handled due to historical reasons.The property ownership certificate has not been
Buxin Generator Room 5994.58
handled due to historical reasons.The property ownership certificate has not been
Guest House on Renmin North Road 5902.41
handled due to historical reasons.Total 52361338.66
Other notes:
(4) Impairment test of fixed assets
□ Applicable□ Not applicable
169Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(5) Disposal of fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets to be disposed 63754.41
Total 63754.41
16. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 3332141.19 7279570.05
Total 3332141.19 7279570.05
(1) Information of construction in progress
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Restoration Project after
Reinforcement of 1885589.69 1885589.69
Building No. 5 Buxin
Renovation of the
exhibition hall and
treasury area of the 4740393.23 4740393.23
sunken area on B1 of the
Tellus Jewelry Building
Reconstruction and
upgrading of the Shuibei 808507.65 808507.65
Zhongtian Building
Decoration project for the
annex building of the
108945.00108945.00
Tellus Gold and Diamond
Building
Other projects 1446551.50 1446551.50 1621724.17 1621724.17
Total 3332141.19 3332141.19 7279570.05 7279570.05
(2) Impairment test of construction in progress
□ Applicable□ Not applicable
17. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Premises and buildings Total
I. Original carrying value
170Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
1. Beginning balance 80401818.61 80401818.61
2. Amount increase in the current year 16421565.70 16421565.70
(1) Leasing 16421565.70 16421565.70
3. Decrease in the current period 439783.14 439783.14
(1) Due 439783.14 439783.14
4. Ending balance 96383601.17 96383601.17
II. Accumulated depreciation
1. Beginning balance 8497102.11 8497102.11
2. Amount increase in the current year 9474215.37 9474215.37
(1) Provision 9474215.37 9474215.37
3. Decrease in the current period 145721.81 145721.81
(1) Disposal
(2) Due 145721.81 145721.81
4. Ending balance 17825595.67 17825595.67
III. Impairment provision
1. Beginning balance
2. Amount increase in the current year
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 78558005.50 78558005.50
2. Beginning book value 71904716.50 71904716.50
(2) Impairment test of right-of-use assets
□ Applicable□ Not applicable
18. Intangible assets
(1) Intangible assets
Unit: RMB
Item Land use right Patent rights Non-patented Computertechnology Trademark software Total
I. Original carrying value
1. Beginning balance 1967851.00 128500.00 7196385.90 9292736.90
2. Amount increase in
the current year 593082.30 593082.30
(1) Purchase 420082.30 420082.30
(2) Internal R&D
(3) Increase from
business merger 173000.00 173000.00
171Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3. Decrease in the
current period
(1) Disposal
4. Ending balance 1967851.00 128500.00 7789468.20 9885819.20
II. Accumulated
amortization
1. Beginning balance 802676.49 110987.78 4463302.02 5376966.29
2. Amount increase in
the current year 103571.05 3792.78 625654.63 733018.46
(1) Provision 103571.05 3792.78 452654.63 560018.46
(2) Changes in
consolidation scope 173000.00 173000.00
3. Decrease in the
current period
(1) Disposal
4. Ending balance 906247.54 114780.56 5088956.65 6109984.75
III. Impairment provision
1. Beginning balance
2. Amount increase in
the current year
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 1061603.46 13719.44 2700511.55 3775834.45
2. Beginning book
value 1165174.51 17512.22 2733083.88 3915770.61
Ratio of intangible assets formed through internal R&D to the balance of intangible assets at the end of the current period.
(2) Data resources recognized as intangible assets
□ Applicable□ Not applicable
(3) Impairment test of intangible assets
□ Applicable□ Not applicable
19. Long-term deferred expenses
Unit: RMB
Item Beginning Increase in the Amortization amount inbalance current period the current period Other decreases Ending balance
Decoration engineering 38392179.02 22719349.38 13046045.39 - 48065483.01
Information System
Service Fee 43577.00 13650.64 - 29926.36
172Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Total 38392179.02 22762926.38 13059696.03 48095409.37
20. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: RMB
Ending balance Beginning balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Deductible losses 12429491.12 3107372.77
Provision for credit impairment 34988635.30 8747158.83 35059422.28 8764855.57
Deferred income 556473.76 139118.44 687408.75 171852.19
Changes in the fair value of trading financial assets 398515.24 99628.81 13705388.76 3426347.19
Changes in the fair value of other equity instrument
10176617.202544154.309793299.532448324.88
investments
Lease liabilities 84443765.66 21110941.41 79671619.30 19917904.83
Total 130564007.16 32641001.79 151346629.74 37836657.43
(2) Deferred tax liabilities not offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Accelerated
depreciation of fixed 126577.00 31644.25 562445.00 140611.25
assets
Time difference of
income tax due to
17094258.404273564.6019145855.244786463.81
allocation of rent-free
period income
Measurement of
remaining equity fair 67398061.80 16849515.45
value
Increase in assessed
value from business
114326295.4728581570.00
combinations under
different control
Right-of-use assets 77731810.56 19432952.64 74533199.60 18633299.90
Total 209278941.43 52319731.49 161639561.64 40409890.41
(3) Deferred tax assets or liabilities presented in net amount after being offset
Unit: RMB
Amount of offsetting Mutual off-set amount Period-beginning
Period-end balance of
of deferred income tax of deferred tax assets balance of deferred tax
Item deferred tax assets or
assets against liabilities and liabilities at the assets or liabilities after
liabilities after offset
at the end of the period beginning of the period offset
Deferred income tax 5496778.78 37836657.43
173Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
assets 27144223.01
Deferred tax liabilities 27144223.01 25175508.48 40409890.41
(4) Breakdown of unrecognized deferred tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 149654149.86 123519997.09
Deductible losses 44519904.21 22073706.37
Total 194174054.07 145593703.46
(5) Deductible losses of unrecognized deferred tax assets will become mature and due in the following
years
Unit: RMB
Year Ending amount Beginning amount Remarks
2024
20256285169.813230232.35
20268589171.358589171.35
20272693238.234821009.13
202824987453.675433293.54
20291964871.15
Total 44519904.21 22073706.37
21. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepaid project
47062569.0047062569.0047071710.5147071710.51
payment
Reclassification
of VAT debit 7237158.45 7237158.45 8385565.03 8385565.03
balance
Large-
denomination
certificates of
145315608.13145315608.1341431777.7841431777.78
deposit and
interest due
over one year
Prepayments
132775.71132775.71164000.00164000.00
for software
Total 199748111.29 199748111.29 97053053.32 97053053.32
22. Assets with restricted ownership or right-of-use
Unit: RMB
174Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Period end Period beginning
Item Book Restricted Book Restricted
Book value Restriction Book value Restriction
balance type balance type
Security Security
deposits deposits
Cash at
76695391. 76695391. Security and futures 60117573. 60117573. Security and futures
bank and
06 06 deposit margin for 95 95 deposit margin for
on hand
bank gold bank gold
leasing leasing
76695391.76695391.60117573.60117573.
Total
06069595
23. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit borrowings 120101444.43 145131694.44
Total 120101444.43 145131694.44
Notes on the classification of short-term borrowings:
24. Trading financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Trading financial liabilities 56881954.76
Including:
Gold leasing 56881954.76
Including:
Total 56881954.76
25. Derivative financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Derivative financial liabilities with designated hedging relationship 46660.00 1380.00
Total 46660.00 1380.00
26. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bills 110000000.00
Total 110000000.00
175Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
27. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Purchase payment for goods and services 7874360.75 6150884.19
Payment for engineering equipment 117681332.38 129683530.20
Total 125555693.13 135834414.39
(2) Significant accounts payable with an account receivable age of over one year
Unit: RMB
Item Ending balance Reasons for not repaying orcarrying forward
Shenzhen Yinglong Jian'an (Group) Co. Ltd. 28298954.80 Project(s) unsettled
China Construction First Building (Group) Corporation Limited 6558657.35 Project(s) unsettled
Shenzhen Yinuo Construction Engineering Co. Ltd. 3555095.22 Project(s) unsettled
Shenzhen Shuibei Yihao Investment Development Co. Ltd. 1120000.00 Project(s) unsettled
Beijing Fugonglide Technology Development Co. Ltd. 1038109.61 Project(s) unsettled
Total 40570816.98
28. Other payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 126312280.55 126826966.60
Total 126312280.55 126826966.60
(1) Other payables
1) Other payables presented by the nature of payment
Unit: RMB
Item Ending balance Beginning balance
Guarantee and security deposits 73630322.35 61572033.08
Associated intercourse funds 7845985.83 13217780.83
Withdrawal in advance 14104886.38 14559784.33
Temporary receipts payable 30731085.99 37477368.36
Total 126312280.55 126826966.60
2) Other significant accounts payable with an account receivable age of over one year or overdue
Unit: RMB
Reasons for not repaying or carrying
Item Ending balance
forward
Hongkong Yujia Investment Limited 2255339.58 Outstanding by related companies
Shenzhen Fuluxin Jewelry Co. Ltd. 1441083.45 Security deposits not yet due
Shenzhen Longgang Tellus Real Estate Co. Ltd. 1095742.50 Outstanding by related companies
176Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Total 4792165.53
3) The top ten other payables by ending balance aggregated by counterparty
29. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rent 9469503.75 4306567.65
Total 9469503.75 4306567.65
30. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Goods fees receivable in advance 2404815.58 2628855.25
Services fees receivable in advance 1604689.01 4451120.13
Total 4009504.59 7079975.38
31. Employee compensation payable
(1) Employee compensation payable
Unit: RMB
Beginning Increase in the Decrease in the
Item Ending balance
balance current period Current Period
I. Short-term compensation 33425356.15 48633497.23 45284502.19 36774351.19
II. Post-employment benefits-defined
4405374.254376101.5029272.75
contribution plans
III. Dismissal benefits 633205.73 601205.73 32000.00
Total 33425356.15 53672077.21 50261809.42 36835623.94
(2) Presentation of short-term compensation
Unit: RMB
Beginning Increase in the Decrease in the
Item Ending balance
balance current period Current Period
1. Wages bonuses allowances and subsidies 33338217.09 40960185.92 38153409.76 36144993.25
2. Employee benefits 85500.00 1595410.64 1162739.02 518171.62
3. Social insurance premiums 1779353.45 1768762.24 10591.21
Including: Medical insurance premiums 1371562.54 1362664.06 8898.48
Work-related injury insurance
175659.99174895.60764.39
premium
Maternity insurance premiums 232130.92 231202.58 928.34
4. Housing provident fund 1012.80 3288945.98 3288945.98 1012.80
177Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
5. Labor union funds and staff education funds 626.26 1009601.24 910645.19 99582.31
Total 33425356.15 48633497.23 45284502.19 36774351.19
(3) Presentation of defined contribution plan
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period Current Period
1. Basic endowment insurance 4168578.11 4140834.14 27743.97
2. Unemployment insurance premium 236796.14 235267.36 1528.78
3. Enterprise annuity
Total 4405374.25 4376101.50 29272.75
32. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
Value-added tax 5266527.71 1753636.75
Consumption tax 964.82
Corporate income tax 11454335.79 7692722.34
Individual income tax 1297785.08 1174933.55
Urban maintenance and construction tax 105007.68 98752.51
Educational surcharges 74959.48 70691.09
Land use tax 26460.00
Land VAT 17360372.46 17386832.46
Stamp duty 518448.66 526135.54
Other taxes 4878.34 153743.82
Total 36109740.02 28857448.06
33. Non-current liabilities due within one year
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 8674869.40 7304647.32
Total 8674869.40 7304647.32
34. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Taxes of items to be written off 6142814.36 3388998.35
Total 6142814.36 3388998.35
35. Lease liabilities
Unit: RMB
178Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Item Ending balance Beginning balance
Lease liabilities 76541985.55 69524214.23
Total 76541985.55 69524214.23
36. Long-term payables
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 3920160.36 3920160.36
Total 3920160.36 3920160.36
(1) Long-term payables by the nature of payment
Unit: RMB
Item Ending balance Beginning balance
Employee housing deposit 3908848.40 3908848.40
Grant for technology innovation projects 11311.96 11311.96
Subtotal 3920160.36 3920160.36
37. Estimated liabilities
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 268414.80
Total 268414.80
38. Deferred income
Unit: RMB
Increase in the Decrease in the Reason for
Item Beginning balance Ending balance
current period Current Period formation
Government
9617683.531780205.937837477.60
subsidies
Total 9617683.53 1780205.93 7837477.60 --
39. Share capital
Unit: RMB
Increase (+)/decrease (-) in this period
Beginning Conversion Ending
balance Issuance of of capitalBonus shares Others Subtotal balance
new shares reserve into
share capital
431058320.431058320.
Total shares
0000
179Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
40. Capital reserves
Unit: RMB
Increase in the current Decrease in the Current
Item Beginning balance Ending balance
period Period
Capital premium (share
425184907.34425184907.34
premium)
Other capital reserves 5681501.16 5681501.16
Total 430866408.50 430866408.50
41. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Less: Less:
Amount Amount
included in included in
other other
Amount comprehen comprehen
incurred sive sive Attributabl Attributabl
Beginning before incomes in income in Less: e to the e to EndingItem
balance income tax the the Income tax parent minority balance
in the previous previous expenses company shareholder
current period but period and after tax s after tax
period transferred transferred
to profit to retained
and loss in earnings in
the current the current
period period
I. Other
comprehen
sive
income - -
-
items not to 7344974.6 7632462.9
287488.25
be 5 0
reclassified
into profits
and losses
Chang
es in the
fair value
--
of other -
7344974.67632462.9
equity 287488.25
50
instrument
investment
s
II. Other
comprehen
sive
income 26422.00 26422.00
items to be
reclassified
into profits
180Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
and losses
Including:
Other
comprehen
sive
income
items to be
26422.0026422.00
reclassified
into profits
and losses
through the
equity
method
Total other
--
comprehen -
7318552.67606040.9
sive 287488.25
50
income
42. Surplus reserve
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance
current period Current Period
Statutory surplus reserves 63956286.46 10266370.53 74222656.99
Total 63956286.46 10266370.53 74222656.99
43. Undistributed profits
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the previous period before adjustment 685342592.62 590605394.67
Total number of undistributed profit at the beginning of adjustment period
8804.40
(increase to be listed with "+" decrease to be listed with "-")
Undistributed profits at the beginning of the period after adjustment 685342592.62 590614199.07
Add: Net profits attributable to owners of parent company in the current period 136629870.80 118255140.84
Less: Appropriation to statutory surplus reserve 10266370.53 11457114.33
Ordinary share dividends payable 13362807.92 12069632.96
Undistributed profits at the end of the period 798343284.97 685342592.62
Breakdown of adjusted undistributed profits at the beginning of the period:
1) The affected undistributed profit at the beginning of the period due to the retroactive adjustment of ASBE and its relevant new
regulations is RMB 0.00.
2) Due to changes in accounting policies the affected undistributed profit at the beginning of the period is RMB 0.00.
3) Due to the correction of major accounting errors the affected undistributed profit at the beginning of the period is RMB 0.00.
4) Due to a change in the consolidation scope as a result of common control the affected undistributed profit at the beginning of
the period is RMB 0.00.
5) Due to the total of other adjustments the affected undistributed profit at the beginning of the period is RMB 0.00.
181Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
44. Operating revenue and operating cost
Unit: RMB
Amount incurred in the current period Amount Incurred in the previous period
Item
Revenue Costs Revenue Costs
Main business 2613678204.37 2376764300.06 1840775590.72 1644301037.12
Other business 5963251.17 4036162.48
Total 2613678204.37 2376764300.06 1846738841.89 1648337199.60
Audited net profit before and after deducting non-recurring gains and losses (whichever is lower negative value or not)
□Yes□ No
Breakdown information of operating revenues and operating costs:
Unit: RMB
Classificati Segment 1 Segment 2 Total
on of Operating Operating Operating Operating Operating Operating Operating Operating
contract revenue cost revenue cost revenue cost revenue cost
Business
type
Including:
Jewelry
23208420227335442320842022733544
sales and
52.7839.8552.7839.85
services
Leasing
29283615103409862928361510340986
and
1.590.211.590.21
services
By
operating
region
Including:
South 19715042 17433542 19715042 17433542
China 50.32 12.66 50.32 12.66
24149579238075582414957923807558
East China
9.740.059.740.05
North 26088160 25735561 26088160 25735561
China 6.21 9.98 6.21 9.98
Central 12109940 11954719 12109940 11954719
China 8.56 7.35 8.56 7.35
Other 18697139. 18431690. 18697139. 18431690.regions 54 02 54 02
By market
or customer
type
Including:
By contract
type
Including:
By time of
transfer of
goods
182Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Including:
By contract
term
Including:
By sales
channel
Including:
26136782237676432613678223767643
Total
04.3700.0604.3700.06
45. Taxes and surcharges
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Urban maintenance and construction tax 1830648.40 1077410.34
Educational surcharges 784536.01 461747.20
Property tax 7172545.32 7253212.27
Land use tax 442956.07 412099.40
Land VAT 11997689.82
Stamp duty 2405663.01 1718798.56
Local educational surcharges 523024.00 307831.47
Vehicle and vessel use tax 13275.47 1320.00
Total 13172648.28 23230109.06
46. Administrative expenses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Employee compensation 38432977.77 68670655.46
Depreciation and amortization 4766354.91 4513002.32
Consulting and service fees 4538253.56 7233752.18
Office expenses 992490.75 899835.11
Property management fee\cleaning
811611.67911298.57
fee\utilities
Transport and travel expenses 289228.68 257294.53
Advertising expenses 162934.17 151938.34
Communication expenses 137608.06 101964.65
Business entertainment expenses 81061.23 130697.36
Others 1150071.65 2751356.57
Total 51362592.45 85621795.09
47. Selling expenses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Employee compensation 6552554.33 7129402.58
E-commerce channel operation service fee 6284555.98
183Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Depreciation and amortization 3089169.78 2562163.21
Advertising marketing expenses 1514296.05 1946341.18
Consultation and service expenses 1054392.27 2570164.71
Insurance expenses 548338.28 362748.38
Communication expense 424139.87 159849.95
Utilities and cleaning fees 423458.67 1735848.97
Transportation and travel expenses 271940.20 495863.28
Office expenses 171365.99 291536.03
Business entertainment expenses 60070.06 301268.22
Material consumption expenses 444.42 9253.40
Others 1837954.99 1564074.84
Total 22232680.89 19128514.75
48. R&D expenses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Employee compensation 2980237.50 1849878.34
Depreciation and amortization 70296.60 115917.44
Others 218285.78
Total 3268819.88 1965795.78
49. Financial expenses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Net interest expenses 9096305.49 9444953.16
Interest income -2984792.54 -4682945.54
Exchange profit and loss -53888.97 670928.14
Handling expenses and others 331390.71 104944.16
Total 6389014.69 5537879.92
50. Other incomes
Unit: RMB
Sources of other incomes Amount incurred in the current period Amount Incurred in the previous period
I. Government subsidies included in
6524396.478480891.46
other incomes
Including: Government subsidies related
1780205.931747472.18
to deferred income
Government subsidies directly included
4744190.546733419.28
in current profits and losses
II. Other items related to daily activities
73439.6810158.93
and included in other incomes
Including: Individual income tax
73439.6810158.93
withholding fees
Total 6597836.15 8491050.39
51. Income from changes in fair value
Unit: RMB
184Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Sources of income from changes in fair value Amount incurred in the current period Amount Incurred in the previous period
Trading financial assets -12410718.88 -10477822.50
Trading financial liabilities 3002660.00 -2215610.00
Income from changes in fair value of
139823.00786300.00
hedging instruments
Income from changes in fair value of
-1299627.74-101030.68
hedging items
Others 120.00 -120.00
Total -10567743.62 -12008283.18
52. Investment incomes
Unit: RMB
Amount incurred in Amount Incurred in
Item
the current period the previous period
Income from long-term equity investments calculated through the equity method 24212981.63 19872836.15
Investment income from trading financial assets during the holding period 5770977.63 3132190.40
Profit from re-measurement of residual equity at fair value after loss of the right
69552580.12
of control
Interest income from large-denomination certificates of deposit and time deposits 5703743.63 7570633.50
Closing income from commodity futures contracts and T+D contracts (hedging) -15331164.53 -5314788.02
Closing income from commodity futures contracts and T+D contracts (no
-886055.89-939938.97
hedging specified)
Total 19470482.47 93873513.18
53. Credit impairment losses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Loss on bad debts of accounts receivable 339597.30 -607094.36
Loss on bad debts of other receivables 6719894.33 -107251.93
Impairment loss of other current assets -157396.51
Bad debt loss of dividends receivable -1305581.86
Total 5596513.26 -714346.29
54. Asset impairment losses
Unit: RMB
Amount incurred in the Amount Incurred in the
Item
current period previous period
I. Loss on diminution in value of inventories and impairment loss on contract
-208813.79
performance cost
IV. Loss on impairment of fixed assets -838121.78
Total -1046935.57
55. Income from disposal of assets
Unit: RMB
185Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Sources of income from asset disposal Amount incurred in the current period Amount Incurred in the previous period
Gains from disposal of fixed assets
-227.20-59110.10
(losses to be listed with "-")
56. Non-operating incomes
Unit: RMB
Amount included in current
Amount incurred in the Amount Incurred in the
Item non-recurring profits and
current period previous period
losses
Gains from unpayable
492565.2558629.97492565.25
payments
Revenue from liquidated
3405795.281561760.573405795.28
damages
Others 2592.54 770443.76 2592.54
Total 3900953.07 2390834.30 3900953.07
57. Non-operating expenses
Unit: RMB
Amount included in current
Amount incurred in the Amount Incurred in the
Item non-recurring profits and
current period previous period
losses
Loss from scrapping of non-
17991.92
current assets
Overdue payments and
liquidated damage 1383776.06 185239.70 1383776.06
expenditure
Others 812183.78 116065.40 812183.78
Total 2195959.84 319297.02 2195959.84
58. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Current income tax expenses 35638514.23 29670941.56
Deferred tax expenses -11380243.86 12413564.92
Total 24258270.37 42084506.48
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in the current period
Total profits 163290002.41
Income tax expenses based on statutory/applicable tax rate 40822500.60
Effect of different tax rates applied to subsidiaries -1053341.75
Effect of income tax during the period before adjustment -31159.40
186Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Impact of non-deductible costs expenses and losses 2088898.27
Profit or loss of joint ventures and associated enterprises calculated by equity method -5895086.41
Income exempted from taxation (to be listed with "-") -172644.40
Effect of using previously unrecognized deductible losses of previous years and
-13133718.97
deductible temporary differences (to be listed with "-")
Effect of using previously unrecognized deductible losses and deductible temporary
2244876.91
differences
Tax effect of additional deduction for R&D expenses (to be listed with "-") -612054.48
Income tax expenses 24258270.37
59. Other comprehensive income
Refer to Note VII. 41 for details.
60. Items in the cash flow statement
(1) Cash related to operating activities
Other cash received relating to operating activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Guarantee and security deposits 33248403.97 30178690.12
Interest income 1595629.53 4601226.17
Government subsidies received 4822034.27 5489668.98
Receipt of payment security deposits 22987350.00 4040160.00
Current accounts and others 14089935.20 8984997.82
Total 76743352.97 53294743.09
Other cash paid relating to operating activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Out-of-pocket expenses 30628305.96 24693611.96
Guarantee and security deposits 33767616.06 18200617.62
Penalty for breach of contract 1300150.00 78857.09
Payment of gold leasing security deposits
2063282.9849095661.55
and note margins etc.Current accounts and others 12048639.24 15440288.31
Total 79807994.24 107509036.53
(2) Cash related to investing activities
Other cash received relating to investing activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Supervision funds received 10665656.00
Incorporation of SDG Huari into
5964034.76
consolidated funds
Others 46628.16
Total 5964034.76 10712284.16
Important cash received related to investing activities
187Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Principals and interests of structured
deposits wealth management products
820139644.49628726990.40
large-denomination certificates of deposit
and time deposits
Total 820139644.49 628726990.40
Other cash paid relating to investing activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Security deposit for hedging instruments 14659543.80 1466070.40
List of SDG Huari 6527338.78
Others 78987.06
Total 14659543.80 8072396.24
Important cash paid related to investing activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Structured deposits wealth management
products large-denomination certificates 985536930.32 717659265.39
of deposit and time deposits
Total 985536930.32 717659265.39
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Lease security deposit received 253420.00
Total 253420.00
Other cash paid relating to other financing activities
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Capital paid to minority shareholders 4900000.00
Lease security deposit paid 1515467.96
Principal and interest on lease liabilities
12180403.46809217.19
paid
Total 12180403.46 7224685.15
Changes in liabilities arising from financing activities
□Applicable □ Not applicable
Unit: RMB
Increase in the current period Decrease in the Current Period
Beginning
Item
balance Non-cash Non-cash
Ending balance
Cash change Cash change
change change
Short-term
145131694.44415000000.005981417.61446011667.62120101444.43
borrowings
Long-term
borrowings
188Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Lease liabilities 76828861.55 18825686.25 10437692.85 85216854.95
Total 221960555.99 415000000.00 24807103.86 456449360.47 205318299.38
61. Supplementary information to the cash flow statement
(1) Supplementary information to cash flow statement
Unit: RMB
Supplementary information Amount in the current period Amount in the previous period
1. Reconciliation of net profit to cash flows from operating
activities
Net profit 139031732.04 111440466.92
Add: Provision for impairment of assets -5596513.26 1761281.86
Depreciation of fixed assets depletion of oil and gas
41583661.3237924212.30
assets and depreciation of productive biological assets
Depreciation of right-of-use assets 9474215.37 6481996.22
Amortization of intangible assets 560018.46 1178005.72
Amortization of long-term deferred expenses 13059696.03 6447382.15
Losses on the disposal of fixed assets intangible
227.2059110.10
assets and other long-term assets (gain to be listed with "-")
Losses from the scrapping of fixed assets (gains to
17991.92
be listed with "-")
Loss from changes in fair value (gain to be listed
10567743.6212008283.18
with "-")
Financial expense (gain to be listed with "-") 9100270.87 9444953.16
Investment loss (gain to be listed with "-") -19470482.47 -93873513.18
Decrease of deferred income tax assets (increase to
32339878.65-29318423.66
be listed with "-")
Increases in deferred tax liabilities (decrease to be
-15330211.3536817730.02
listed with "-")
Decrease of inventory (increase to be listed with "-") 45716613.09 -54724534.68
Decrease in operating receivables (increase to be
100475881.49-102166911.92
listed with "-")
Increase in operating items payable (decrease to be
28776082.79-3638036.57
listed with "-")
Others
Net cash flows from operating activities 390288813.85 -60140006.46
2. Major investment and financing activities not relating to
cash deposit and withdrawal
Conversion of debt into capital
Convertible corporate bonds due within one year
Fixed assets acquired through financial lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 301275968.63 160223387.69
Less: Period-beginning balance of cash 160223387.69 391406829.36
Add: Period-end balance of cash equivalents
189Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Less: Period-beginning balance of cash equivalents
Net increase in cash and cash equivalents 141052580.94 -231183441.67
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: RMB
Amount
Including:
Less: Cash and cash equivalents held by subsidiaries on the date of acquisition -5964034.76
Including:
Shenzhen SDG Huari Automobile Enterprise Co. Ltd. -5964034.76
Including:
Net cash paid for acquisition of subsidiaries 5964034.76
(3) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 301275968.63 160223387.69
Including: Cash on hand 20879.87 17215.98
Cash at bank available for payment at any time 241190505.42 120361253.61
Other monetary funds available for payment on demand 60064583.34 39844918.10
III. Period-end balance of cash and cash equivalents 301275968.63 160223387.69
(4) Monetary funds not belonging to cash or cash equivalents
Unit: RMB
Amount in the current Amount in the previous Reasons for not belonging to
Item
period period cash and cash equivalents
Security deposits for notes payable 33113263.10 Guarantee deposits of notes
Deposits for gold futures
Futures and options account margin 22848540.40 8188990.60
trading business restricted
Deposits for gold leasing
Gold leasing security deposits and interests 20069638.91 51328583.35
business restricted
Amount under judicial control 663948.65 600000.00 Judicial control
Total 76695391.06 60117573.95
62. Monetary items in foreign currency
(1) Foreign currency monetary items
Unit: RMB
Ending foreign currency Ending balance of converted
Item Conversion exchange rate
balance RMB
Cash at bank and on hand
Including: USD 861.56 7.1884 6193.24
EUR
190Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
HKD 49698.96 0.92604 46023.22
Accounts receivable
Including: USD
EUR
HKD
Long-term borrowings
Including: USD
EUR
HKD
Other receivables
Including: USD 205381.99 7.1884 1476367.90
Other payables
Including: HKD 3376679.37 0.92604 3126940.16
(2) Description of overseas operating entities including the disclosure of the primary places of business
abroad bookkeeping base currency and the basis for its selection for significant overseas operating
entities. If there is a change in the bookkeeping base currency the reason for the change shall also be
disclosed.□ Applicable□ Not applicable
63. Lease
(1) The Company as the leasee
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable□ Not applicable
Lease expenses for short-term leases or low-value assets that are simplified
□ Applicable□ Not applicable
Situations involving sale and leaseback transactions
(2) The Company as the lessor
Operating leases with the Company as the lessor
□Applicable □ Not applicable
Unit: RMB
Including: Incomes related to variable
Item Lease income lease payments that are not included in
the measurement of lease receipts
Lease 292836151.59
Total 292836151.59
Finance lease with the Company as the lessor
□ Applicable□ Not applicable
191Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Annual undiscounted lease receipts in the next five years
□ Applicable□ Not applicable
VIII. R&D Expenditures
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Labor cost 2999634.82 1849878.34
Depreciation expenses 70296.60 115917.44
Other expenses 198888.46
Total 3268819.88 1965795.78
Including: Expense account-based R&D
3268819.881965795.78
expenses
IX. Changes in Consolidation Scope
1. Changes in consolidation scope for other reasons
Changes in the scope of consolidation due to other reasons (such as establishing new subsidiaries liquidating subsidiaries) and
related information:
On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate the liquidation and resume
operations. The Company submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court for withdrawal of
the compulsory liquidation application for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023]
Y0391QQ No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the withdrawal of the compulsory
liquidation application for SDG Huari. Consequently the Company included SDG Huari in its consolidated financial statements as
of December 27 2024.X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of enterprise groups
Unit: RMB
Shareholding
Registered Principal place Registered Business Acquisition
Subsidiary name proportion
capital of business location nature method
Direct Indirect
Shenzhen Tellus
Xinyongtong
Automobile 32900000.00 Shenzhen Shenzhen Commerce 5.00% 95.00% Establishment
Development Co.Ltd.Shenzhen Bao'an
Shiquan Industry 2000000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment
Co. Ltd.Shenzhen SDG
Tellus Real Estate 31150000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment
Co. Ltd.Shenzhen Tellus
Chuangying 1500000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment
Technology Co.
192Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ltd.Shenzhen
Xinyongtong
Motor Vehicle
9607800.00 Shenzhen Shenzhen Commerce 51.00% 0.00% Establishment
Inspection
Equipment Co.Ltd.Shenzhen
Automobile
18960000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment
Industry and Trade
Co. Ltd.Shenzhen
Automobile
Industry Supply 11110000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment
and Marketing
Company
Shenzhen
366221900.0
Zhongtian Industry Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment
0
Co. Ltd.Shenzhen Huari
Automobile Sales
2000000.00 Shenzhen Shenzhen Commerce 60.00% 0.00% Establishment
and Service Co.Ltd.Shenzhen Tellus
Treasury Supply
50000000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment
Chain Tech Co.Ltd.Shenzhen Jewelry
100000000.0
Industry Service Shenzhen Shenzhen Commerce 65.00% 0.00% Establishment
0
Co. Ltd.Shanghai Fanyue
3500000.00 Shanghai Shanghai Commerce 0.00% 100.00% Establishment
Diamond Co. Ltd.Guorun Gold 200000000.0
Shenzhen Shenzhen Commerce 36.00% 3.25% Establishment
Shenzhen Co. Ltd. 0
Shenzhen SDG
Huari Automobile
35712710.50 Shenzhen Shenzhen Commerce 60.00% 0.00% Establishment
Enterprise Co.Ltd.Shenzhen Huari
Anxin Automobile
1500000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment
Inspection Co.Ltd.Unit: RMB
Explanation of the fact that the shareholding percentage is different from proportion of votes in subsidiaries:
The shareholding proportion in Guorun Gold Shenzhen Co. Ltd. is different from the proportion of voting rights and the basis for
holding half or less of the voting rights but still controlling the investee:
In June 2022 the Company cooperated with its subsidiaries Shenzhen Jewelry Industry Service Co. Ltd. Shenzhen HTI Group
Co. Ltd. Chow Tai Fook Jewellery Park (Wuhan) Co. Ltd. Chow Tai Seng Jewelry Co. Ltd. Beijing Caishikou Department
Store Co. Ltd. and Shenzhen ZHL Industrial Co. Ltd. to jointly invest in the establishment of Guorun Gold Shenzhen Co. Ltd.Among them the Company contributed RMB 72 million with a shareholding ratio of 36%; Shenzhen Jewelry Industry Service
Co. Ltd. a subsidiary of the Company contributed RMB 10 million with a shareholding ratio of 5%; Shenzhen HTI Group Co.Ltd. held 10% and other shareholders held 49% in total. The Company signed a concerted action agreement with Shenzhen HTI
Group Co. Ltd. stipulating that Shenzhen Hi-tech Investment Group Co. Ltd. shall maintain a consensus with the Company when
193Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
voting at the shareholders' meeting and the board of directors of Guorun Gold Shenzhen Co. Ltd. Therefore the Company and its
subsidiaries actually hold 51% of the voting rights of Guorun Gold Shenzhen Co. Ltd. and have control over Guorun Gold
Shenzhen Co. Ltd.The basis for the Company's control over the investee when holding half or less of the voting rights and the Company's control
over the investee when holding more than half of the voting rights:
Basis for control over the important structured entities incorporated in the consolidated scope:
Basis to determine whether the company is the agent or the principal:
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profit or loss
Shareholding Dividends declared to Balance of minority
attributable to minority
Subsidiary name proportion of minority minority shareholders interests at the end of
shareholders in the
shareholders in the current period the period
current period
Guorun Gold Shenzhen
60.75%91947.48120818588.83
Co. Ltd.Notes on the difference between the shareholding percentage of minority shareholders of subsidiaries and the voting rights ratio:
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Subsid Curren Non- Curren Non-
iary Non- Total Non- TotalCurren Total t current Curren Total t current
name current liabiliti current liabilitit assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
Guoru
n Gold
3896139662194651985640143408842059921093
Shenz 7015 3912 7409 4935
3130.8815.3052.5555.6296.5673.7337.3146.
hen 684.80 502.84 377.22 809.24
6949281218403761
Co.Ltd.Unit: RMB
Amount incurred in the current period Amount Incurred in the previous period
Subsidiary Total Cash flow Total Cash flow
name Operating comprehen from Operating comprehen fromNet profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Guorun
---
Gold 22998353 20407000 14920217
150733.58150733.581528616.51528616.518233255
Shenzhen 71.86 4.99 25.24
442.52
Co. Ltd.
2. Equities in joint ventures or associates
(1) Important associates and joint ventures
Name of joint Principal place Registered Business nature Shareholding proportion Accounting
194Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
venture or of business location Methods for
associate Investment in
Direct Indirect Joint Ventures
or Associates
I. Joint ventures
Shenzhen
Equity method-
Tellus-Gmond Leasing
Shenzhen Shenzhen 50.00% based
Investment Co. services
accounting
Ltd.II. Associates
Shenzhen
Renfu Tellus Equity method-
Automobile
Automobiles Shenzhen Shenzhen 35.00% based
sales
Service Co. accounting
Ltd.Explanation of the shareholding percentage being different from the proportion of voting rights in joint ventures or associates:
Basis for telling holding less than 20% of the voting rights but enjoying a significant influence or holding 20% or more of the
voting rights but not enjoying a significant influence:
(2) Main financial information of important joint ventures
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Shenzhen Tellus-Gmond Investment Co. Shenzhen Tellus-Gmond Investment Co.Ltd. Ltd.Current assets 64308170.72 60614147.72
Including: Cash and cash equivalents 63261490.89 59631516.56
Non-current assets 301569595.17 326363493.98
Total assets 365877765.89 386977641.70
Current liabilities 46770664.57 47521951.61
Non-current liabilities 206675092.80 240954000.00
Total liabilities 253445757.37 288475951.61
Minority shareholders' equity
Equity attributable to shareholders of the
112432008.5298501690.09
parent company
Shares of net assets calculated as per the
56216004.2649250845.06
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Book value of equity investments to joint
56216004.2649250845.06
ventures
Fair value of equity investment in joint
ventures with public offers
Operating revenue 132430277.65 114967524.80
Financial expenses 9163348.96 10656384.56
195Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Income tax expenses 15182681.66 11463999.39
Net profit 43930318.41 34214249.85
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 43930318.41 34214249.85
Dividends received from joint ventures
15000000.0015000000.00
in the current year
(3) Major financial information of important associates
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Shenzhen Renfu Tellus Automobiles Shenzhen Renfu Tellus Automobiles
Service Co. Ltd. Service Co. Ltd.Current assets 142897387.81 167519575.18
Non-current assets 23459468.10 32145888.83
Total assets 166356855.91 199665464.01
Current liabilities 122597583.76 158552555.81
Non-current liabilities 362341.96 1231962.74
Total liabilities 122959925.72 159784518.55
Minority shareholders' equity
Equity attributable to shareholders of the
43396930.1939880945.46
parent company
Shares of net assets calculated as per the
15188925.5713958330.91
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Book value of equity investments in
15188925.5713958330.91
associates
Fair value of equity investments in
associates with public offers
Operating revenue 814278410.46 1023951420.71
Net profit 3515984.72 10469419.27
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 814278410.46 10469419.27
Dividends received from associates in
0.009385714.52
the current year
196Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(4) Summary of financial information of unimportant joint ventures and associates
Unit: RMB
Period-end balance/amount incurred in Period-beginning balance/amount
the current period incurred in the previous period
Joint ventures:
Total book value of investments 13680093.35 13302311.60
Total amount of the following items at
the shareholding percentage
-- Net profit 754101.51 -898585.53
-- Other comprehensive income 754101.51 -898585.53
Associates:
Total amount of the following items at
the shareholding percentage
(5) Explanation on major restrictions on the capability of transferring capital from joint ventures or
associates to the Company
Unit: RMB
Unrecognized loss Unrecognized loss in the Unrecognized loss
Name of joint venture or
accumulated in the previous current period (or net profit accumulated at the end of the
associate
period shared in the current period) current period
Shenzhen Tellus Automobile
98865.2698865.26
Service Chain Co. Ltd.Shenzhen Yongtong Xinda
1176212.731176212.73
Testing Equipment Co. Ltd.XI. Government Subsidies
1. Government subsidies recognized as receivable amounts at the end of the reporting period
□ Applicable□ Not applicable
Reasons for not receiving the estimated amount of government subsidies at the expected time point
□ Applicable□ Not applicable
2. Liability-related projects with government subsidies
□Applicable □ Not applicable
Unit: RMB
New Amount Amount Other
granted included non- transferred to changes
Accounting Beginning Ending Asset/income
amount in operating other incomes in the
item balance balance -related
the current revenues in the in the current current
period current period period period
Deferred
9617683.53 1780205.93 7837477.60 Asset-related
income
197Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3. Government subsidies included in current profits and losses
□Applicable □ Not applicable
Unit: RMB
Accounting item Amount incurred in the current period Amount Incurred in the previous period
Other incomes 4.744190.54 6733419.28
XII. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The main financial instruments of the Company include cash at bank and on hand accounts
receivable and other receivables non-current assets due within one year other current assets
trading financial assets debt investments other debt investments other equity instrument
investments other non-current financial assets long-term receivables notes payable accounts
payable other payables short-term borrowings trading financial liabilities non-current liabilities
due within one year lease liabilities and long-term payables. Details of each financial instrument
of the Company are disclosed in the notes related. Risks related to these financial instruments and
risk management policies for reducing these risks adopted by the Company are described as
follows. The management of the Company manages and monitors these risk exposures to ensure
that the above risks are controlled in a limited scope.Risk management objectives and policies
The major risks that may be caused by the Company’s financial instruments include credit risks
liquidity risks and market risks (including exchange rate risk interest rate risk and commodity
price risk).The Company's overall risk management plan aims to mitigate the potential adverse effects on the
Company's financial performance caused by the unpredictability of the financial market.The Company has formulated risk management policies to identify and analyze all the risks faced
by the Company set up the acceptable risk level and design corresponding internal control
procedures to monitor the Company's risk level. These risk management policies and related
internal control systems will be reviewed regularly to accommodate market conditions or changes
in the Company's operating activities. The internal audit department will also regularly or
irregularly check whether the implementation of such internal control systems complies with risk
management policies.The Company disseminates risks in financial instruments through appropriate diversified
investments and business portfolios and formulates corresponding risk management policies to
reduce risks concentrated in a single industry specific regions or specific counterparties.
(1) Credit risks
Credit risk is the risk of financial loss of the Company caused by a counterparty's failure to meet
its obligations in a contract.
198Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company manages credit risks through portfolio classification. Credit risk mainly arises from
bank deposits accounts receivable other receivables long-term receivables debt investment etc.For expected bank deposits no major credit risk is generated as the Company’s bank deposits are
mainly kept in state-owned banks and other large and medium-sized listed banks.For notes receivable accounts receivable other receivables and long-term receivables relevant
policies are established by the Company to control credit risk exposure. The Company evaluates
customers' credit qualifications based on their financial status credit records and other factors
such as current market conditions and sets corresponding credit periods. The Company will
monitor the credit records of customers periodically. For customers with poor credit records
measures such as written payment demand shortening the credit period or canceling the credit
period will be adopted by the Company to ensure the overall credit risk is in the controllable
scope.The Company's debtors of accounts receivable are customers distributed in different industries
and areas. The Company continuously conducts credit assessments on the financial status of
accounts receivable and when appropriate purchases credit guarantee insurance.The maximum credit risk exposure tolerable by the Company is the book amount of each of the
financial asset items in the balance sheet. The Company has not provided any other guarantee that
may cause the Company to bear credit risks.Among the accounts receivable of the Company the accounts receivable from the top five
customers account for 28.78% of the total accounts receivable (2023: 43.23%). Additionally
among the other receivables the amounts owed by the top five companies in amount in arrear
represent 48.62% of the Company's total other receivables (2023: 47.55%).
(2) Liquidity risks
Liquidity risk refers to the risk of a shortage of funds arising from the performance of the
Company's obligations to settle through the delivery of cash or for other financial assets.In managing liquidity risk the Company maintains sufficient cash and cash equivalents as
deemed necessary by management and monitors them to meet operational needs and mitigate the
impact of cash flow volatility. The management of the Company monitors the utilization of bank
loans and ensures compliance with borrowing agreements. Meanwhile the Company has obtained
commitments from major financial institutions regarding the provision of adequate reserve funds
to meet the Company's fund requirements in the short and long terms.Sources of the Company's working capital include funds generated from operating activities bank
loans and other borrowings. At the end of the period the unused bank borrowing limit of the
Company was RMB 20 million (RMB 667 million at the end of the previous year).At the end of the period financial liabilities and off-balance sheet guaranteed items held by the
Company are analyzed as follows based on the expiration date of undiscounted remaining
contract cash flow (unit: RMB 10000):
199Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ending balance
Item
Within 1 year 1-2 years 2-3 years Over 3years Total
Financial liabilities:
Short-term borrowings 12010.14 - - - 12010.14
Trading financial liabilities - - - - -
Derivative financial liabilities 4.67 - - - 4.67
Accounts payable 3624.12 3825.94 0.71 5104.80 12555.57
Other payables 4145.11 2375.5 364.18 5746.43 12631.23
Current portion of non-current
liabilities 867.49 - - - 867.49
Lease liabilities - 1129.41 1149.10 6471.98 8750.49
Long-term payables - - - 392.02 392.02
Total financial liabilities and
contingent liabilities 20651.53 7330.85 1513.99 17715.23 47211.61
At the end of the previous year financial liabilities and off-balance sheet guaranteed items held
by the Company were analyzed as follows based on the expiration date of undiscounted remaining
contract cash flow (unit: RMB 10000):
Ending Balance of the Previous Year
Item Within 1
year 1-2 years 2-3 years
Over 3
years Total
Financial liabilities:
Short-term borrowings 14513.17 - - - 14513.17
Trading financial liabilities 5688.20 - - - 5688.20
Derivative financial liabilities 0.14 - - - 0.14
Accounts payable 6939.87 942.36 40.44 5660.77 13583.44
Other payables 4168.24 1641.53 1908.76 4964.17 12682.70
Current portion of non-current
liabilities 1066.04 - - - 1066.04
Lease liabilities - 995.42 912.07 6102.07 8009.56
Long-term payables - - - 392.02 392.02
Total financial liabilities and
contingent liabilities 32375.66 3579.31 2861.27 17119.03 55935.27
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash
flows and may therefore differ from their carrying amount in the balance sheet.The maximum guarantee amount of the signed guarantee contract does not represent the amount
to be paid.
(3) Market risks
200Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash
flow of financial instruments due to market price development. Market risks include interest rate
risk exchange rate risk and other price risks.Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments
will fluctuate due to changes in the market interest rate. Interest rate risk can come from
recognized interest-bearing financial instruments and unrecognized financial instruments (such as
certain loan commitments).The interest rate risk of the Company mainly arises from long-term borrowings from banks bonds
payable and other long-term debts with interest. Financial liabilities with a floating interest rate
expose the Company to cash flow interest rate risk and financial liabilities with a fixed interest
rate expose it to a fair value interest rate risk. The Company determines the ratio of fixed-rate and
floating-rate contracts based on the market environment and maintains an appropriate
combination of fixed-rate and floating-rate instruments through regular review and monitoring.The Company keeps an eye on the effect of changes in interest rates on the Company's interest
rate risk. At present the Company does not take any interest rate hedging policy. However the
management is responsible for monitoring interest rate risk and will consider hedging significant
interest rate risks when necessary. The increase in interest rates will increase the cost of new
interest-bearing debts and the Company's unpaid interest expense on interest-bearing debts
accrued at floating interest rates which will have a significant adverse effect on the Company's
financial results. The management will duly make adjustments according to the latest market
conditions. These adjustments may reduce interest rate risks via interest rate swaps.For financial instruments held on the balance sheet date that expose the Company to fair value
interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis
is the impact after re-measurement of the above financial instruments according to the new
interest rate assuming that the interest rate on the balance sheet date changes. For floating rate
non-derivative instruments held on the balance sheet date that expose the Company to cash flow
interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis
is the impact of the above interest rate changes on the estimated annual interest expenses or
income. The previous year's analysis was based on the same assumption and methodology.Exchange rate risk
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate due to changes in foreign exchange rates. Exchange rate risk may come from financial
instruments valued at a foreign currency other than the bookkeeping base currency.The main business of the Company is conducted in China and settled in RMB. Therefore the
Company believes that the exchange rate risk faced is not significant.The Company keeps an eye on the effect of the fluctuation in exchange rates on its exchange rate
risk. At present the Company does not take any action to avoid the exchange rate risk. However
201Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the management is responsible for monitoring exchange rate risks and will consider hedging
significant interest rate risks when necessary.Capital management
The objective of the Company's capital management policy is to ensure the sustainability of
operations thereby providing returns to shareholders and benefiting other stakeholders while
maintaining an optimal capital structure to reduce the cost of capital.To maintain or adjust the capital structure the Company may adjust the financing method and the
amount of dividends paid to shareholders return capital to shareholders issue new shares and
other equity instruments or sell assets to reduce liabilities.The Company monitors capital structure based on the asset-liability ratio (i.e. total liabilities
divided by total assets). At the end of the period the Company's asset-liability ratio is 26.85%
(27.99% at the end of the previous year).
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable □ Not applicable
To avoid the risk of changes in the fair value of gold raw materials held by them (i.e. the hedged
risk) the subsidiaries of the Company Guorun Gold Shenzhen Co. Ltd. and Shenzhen Tellus
Treasury Supply Chain Tech Co. Ltd. analyzed the expected purchase transactions of gold raw
materials based on the number of gold bars booked and invested by customers and on this basis
used hedging instruments such as deferred delivery contracts for spot gold of Shanghai Gold
Exchange gold futures contracts of Shanghai Futures Exchange and exchange gold options. In
this way the risk of gold product price decline caused by the sharp drop in gold price can be
avoided. Guorun Gold a subsidiary of the Company formulated the Hedging Transaction
Management Guidelines which clearly stipulates the approval authority operation process and
risk control for the Company to carry out hedging business. The hedge is a fair value hedge and
the accounting period specified for the hedging relationship is from January 1 2024 to December
312024.
The approval procedures for the Company to use its own funds to carry out hedging business
comply with relevant national laws regulations and the Articles of Association. The gold deferred
transaction hedging business carried out to avoid fluctuations in gold prices is conducive to
controlling operational risks and improving the Company's ability to resist market fluctuations.
(2) The Company carries out eligible hedging business and applies hedge accounting
Unit: RMB
The book value of the hedged items and related adjustments are as follows:
2024
202Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Accumulated amount of Listed Changes in the
Book value of the hedged hedging adjustment for fair fair value of
item value of hedged items
items of hedged items
(included in the book value the
Item of hedged items) balance
used as a basis
sheet for recognizing
including an invalid
Asset Liability Asset Liability hedged portion of
items hedges in 2024(note)
Commodity
price risk- 115731218.89 - -874345.74 - Inventory -
inventory
2023
Accumulated amount of Changes in
Book value of the hedged hedging adjustment for fair Listed the fair value
item value of hedged items items of of hedged(included in the book value the balance items used as
Item of hedged items) sheet a basis for
including recognizing
hedged an invalidAsset Liability Asset Liability items portion ofhedges in
2023 (note)
Commodity
price risk- 85802395.07 - 442847.41 - Inventory -
inventory
Changes in the book value and fair value of hedging instruments are as follows:
2024
Book value of hedging instruments Changes in the
Listed items fair value of
of the hedging
Nominal amount balance instruments
Item of hedging sheet used as a basis
instrument Asset Liability including for recognizing
hedging an invalid
instruments portion ofhedges in 2024
(note)
Commodity Derivative
price risk- 115731218.89 292078.00 46660.00 financial -
inventory asset/liability
2023
Item Nominal amount Book value of hedginginstruments Listed items of the Changes in the
203Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
of hedging balance sheet fair value of
instrument including hedging hedging
instruments instruments used
Asset Liability as a basis forrecognizing an
invalid portion of
hedges in 2023
(note)
Commodity Derivative
price risk- 85802395.07 298320.00 1380.00 financial -
inventory asset/liability
Note: The invalid portion of hedging mainly comes from basis risk supply and demand change
risks in the spot or futures market and uncertainty risks in other spot or futures markets. The
invalid portions of hedging recognized in the current and previous years are not significant.
(3) The Company carries out hedging business for risk management and expects to achieve the risk management objectives
but does not apply hedge accounting
□ Applicable□ Not applicable
3. Financial assets
(1) Classification of transfer methods
□ Applicable□ Not applicable
(2) Financial assets derecognized due to transfers
□ Applicable□ Not applicable
(3) Continuing involvement in the transfer of financial assets
□ Applicable□ Not applicable
XIII. Disclosure of Fair Value
1. Ending fair value of the assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous fair value measurement -- -- -- --
(I) Trading financial assets 165630834.06 165630834.06
1. Financial assets at fair value through profit
165630834.06165630834.06
or loss
(4) Structured deposits and financial
165630834.06165630834.06
products
(II) Derivative financial assets 292078.00 292078.00
204Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
1. Hedging instruments 292078.00 292078.00
(III) Other debt investments 84724128.76 84724128.76
1. Large-denomination certificate of deposit 84724128.76 84724128.76
(IV) Other equity instrument investments
(V) Hedged items 114856873.15 114856873.15
Total amount of assets continuously
115148951.15250354962.82365503913.97
measured at fair value
(1) Gold leasing
(VII) Derivative financial liabilities 46660.00 46660.00
1. Hedging instruments 46660.00 46660.00
Total amount of liabilities continuously
46660.0046660.00
measured at fair value
II. Non-continuous fair value measurement -- -- -- --
2. Basis for determining the market price of items subject to continuous and non-continuous level 1 fair
value measurement
Level 1: Quotations for the same assets or liabilities in active markets (unadjusted).The Company designates the financial liabilities measured at fair value through profit or loss as the physical
gold leasing business from banks by the Company. There is an active market for gold (i.e. Shanghai Gold
Exchange) and the Shanghai Gold Exchange publishes the closing price of gold contract transactions on each
trading day. At the end of the period the Company uses the closing price published by the Shanghai Gold
Exchange on the last trading day as the basis for determining the market price.The hedged items of the Company are gold product inventories and the hedging instruments are
assets/liabilities arising from changes in the fair value of gold futures contracts and gold spot deferred
settlement contracts held by the Company. The Company determines the fair value based on the public
quotations of gold spot transactions and futures transactions of Shanghai Gold Exchange and Shanghai Futures
Exchange.
3. Qualitative and quantitative information about valuation techniques and key parameters of items
concerning continuous and non-continuous level 2 fair value measurement
Level 2: Observable input values other than market quotations for assets or liabilities in level 1 are used directly
(i.e. price) or indirectly (i.e. derived from price).The trading financial assets held by the Company are bank financial products with one-year principal
guaranteed floating income and their fair value is determined based on discounted future cash flows calculated
at an agreed expected rate of return. There is no material difference between the fair value and book cost of
other non-current financial assets held by the Company.Information on level 2 fair value measurement
Content Ending fair value Valuation technique Input value
Derivative
instrument:
Derivative financial -- Discounted cash flowassets method Expected interest rate
205Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Derivative financial -- Discounted cash flowliabilities method Expected interest rate
4. Qualitative and quantitative information about valuation techniques and key parameters of items
concerning continuous and non-continuous level 3 fair value measurement
5. Information on adjustment between beginning book value and ending book value of items subject to
continuous level 3 fair value measurement and sensitivity analysis of unobservable parameters
Level 3: Any input value (unobservable input value) that is not based on observable market data is used for
assets or liabilities.Equity instrument investments are measured by the Company based on the investment cost as a reasonable
estimate of the fair value because the operating environment operating conditions and financial conditions of
the investee China PUFA Machinery Industry Co. Ltd. have not changed significantly.Quantitative information of significant unobservable input values used in level 3 fair value measurement
Content Ending fair Valuation Unobservable input Range (weightedvalue technique value average)
Equity instrument
investment:
Unlisted equity
investment Net assets N/A N/A
6. Reasons for transfer and the policies applicable at the time of transfer for items subject to continuous
fair value measurement and having transferred between levels in the current period
In this year the fair value measurement of financial assets and financial liabilities of the Company
did not transfer between Level 1 and Level 2 or transfer into or out of Level 3.For financial instruments traded in active markets the Company determines their fair value based
on active market quotes. For financial instruments not traded in active markets the Company uses
valuation techniques to establish their fair value. The used valuation model mainly includes the
discounted cash flow model market comparable company model etc. The input values of
valuation techniques mainly include the risk-free interest rate benchmark interest rate exchange
rate credit point difference liquidity premium discount for lack of marketability (DLOM) etc.XIV. Related Parties and Related Party Transactions
1. Information of the parent company
Shareholding Vote proportion of
Name of parent Registered proportion of the the parent
Business nature Registered capital
company location parent company to company to the
the Company Company
Shenzhen Special Real estate
RMB
Economic Zone Shenzhen development and 49.09% 49.09%
6179406000
Development Group operation
206Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd. domestic
commerce
Information of the parent company
SDG Group was established on June 20 1982 and invested by the Shenzhen SASAC. The company currently
holds a business license with a unified social credit code of 91440300192194195C and a registered capital of
RMB 6179406000.The ultimate controlling party of the Company is the State-owned Assets Supervision and Management Commission of Shenzhen
Municipal People’s Government.
2. Information of the subsidiaries of the Company
For details of the Company's subsidiaries please refer to Note X. 1.
3. Information of the joint ventures and associates of the Company
The important joint ventures or associates of the Company are detailed in Note X. 2.The information on other joint ventures or associates that produced balance by conducting related-party transactions with the
Company in the current period or in the earlier period is shown as follows:
Name of joint venture or associate Relationship with the Company
Shenzhen Tellus Xinyongtong Automobile Service Co. Ltd. Associate of the Company
Shenzhen Tellus Automobile Service Chain Co. Ltd. Associate of the Company
Shenzhen Yongtong Xinda Testing Equipment Co. Ltd. Associate of the Company
Shenzhen Torch Spark Plug Industry Co. Ltd. Associate of the Company
Shenzhen Xiandao New Materials Co. Ltd. Associate of the Company
Shenzhen Telixing Investment Co. Ltd. Joint venture of the Company
4. Information of other related parties
Name of other related party Relationship between other related party and the Company
Shenzhen SDG Microfinance Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Urban Renewal Investment Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Machinery & Equipment Import & Export Co. Ltd. Controlled subsidiary of the Company's parent company
Hongkong Yujia Investment Limited Controlled subsidiary of the Company's parent company
Shenzhen SDG Engineering Management Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Tellus Yangchun Company Controlled subsidiary of the Company's parent company
Shenzhen SDG Real Estate Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen Longgang Tellus Real Estate Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Tellus Property Management Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Service Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Liming Optoelectronics (Group) Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Building Technology Co. Ltd. Controlled subsidiary of the Company's parent company
Shenzhen SDG Eastern Service Co. Ltd. Controlled subsidiary of the Company's parent company
Subsidiary controlled by the parent company of the Company
ISSTech Information Technology Co. Ltd.within 12 months
Shenzhen Wahlai Decoration & Furniture Co. Ltd. Associate of the Company's parent company
Enterprise subject to significant impact by key management
Shenzhen Zhigu Jinyun Technology Co. Ltd.personnel
Shenzhen ZHL Industrial Co. Ltd. Minority shareholder of important subsidiary
Beijing Caishikou Department Store Co. Ltd. Minority shareholder of important subsidiary
Shenzhen Shuntian Electric Vehicle Technology Development Investment company of the Company
207Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd.Enterprises in which the former president of an important
Shenzhen Zhongminglong Investment Co. Ltd.subsidiary holds shares
Enterprise controlled by minority shareholders of important
Shenzhen Jinliantong Digital Technology Co. Ltd.subsidiary
Enterprise controlled by minority shareholders of important
Shenzhen Yuepengjin Jewelry Co. Ltd.subsidiary
Enterprise controlled by minority shareholders of important
Shenzhen Yuepengjin E-commerce Co. Ltd.subsidiary
Holding subsidiary of the parent company of the Company's
Guoren Property & Casualty Insurance Co. Ltd.parent company
Shenzhen SDG Huari Automobile Enterprise Co. Ltd. Other related parties
5. Information of related transactions
(1) Related transactions of purchase/sales of commodities and rendering/receiving of labor services
Information on purchase of commodities/receipt of labor services
Unit: RMB
Amount incurred Exceeding the Amount Incurred
Content of related Approved
Related party in the current transaction amount in the previous
party transaction transaction amount
period or not period
Shenzhen SDG
Receiving services 20270819.23 40220000.00 No 16915283.92
Service Co. Ltd.Shenzhen SDG
Tellus Property
Receiving services 1734135.69 1980000.00 No 2130623.04
Management Co.Ltd.Shenzhen ZHL
Receiving services 841272.75 No 3023066.13
Industrial Co. Ltd.Shenzhen SDG
Engineering
Receiving services 775830.53 1400000.00 No 1314123.15
Management Co.Ltd.Guoren Property &
Purchasing
Casualty Insurance 541600.54 800000.00 No 414886.00
services
Co. Ltd.Shenzhen Wahlai
Purchasing
Decoration & 453552.39 No
services
Furniture Co. Ltd.Shenzhen SDG
Building Purchasing
203773.59 No
Technology Co. services
Ltd.Shenzhen SDG
Purchasing
Eastern Service 117768.00 No
services
Co. Ltd.Shenzhen
Yuepengjin Receiving services 54091.15 No 173547.82
Jewelry Co. Ltd.Shenzhen Zhigu
Procurement of
Jinyun Technology 25994.42 No 56492.11
goods
Co. Ltd.Shenzhen Zhigu
Software usage fee No 990566.01
Jinyun Technology
208Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd.Information on selling goods and rendering labor services
Unit: RMB
Content of related Amount incurred in Amount Incurred in the
Related party
party transaction the current period previous period
Shenzhen Yuepengjin E-commerce Co. Ltd. Sales of goods 83815902.66 105249451.43
Beijing Caishikou Department Store Co. Ltd. Sales of goods 5942165.99 2832890.26
Shenzhen SDG Service Co. Ltd. Provision of services 3868613.35 3251252.21
Shenzhen ZHL Industrial Co. Ltd. Provision of services 452001.02 274809.68
Shenzhen Telixing Investment Co. Ltd. Provision of services 283018.87
Shenzhen Yuepengjin Jewelry Co. Ltd. Provision of services 357459.71 368035.44
Shenzhen SDG Microfinance Co. Ltd. Provision of services 161205.25 161205.24
Shenzhen Jinliantong Digital Technology Co. Ltd. Provision of services 2615621.84
Shenzhen Zhongminglong Investment Co. Ltd. Provision of services 8490.60
Shenzhen Zhigu Jinyun Technology Co. Ltd. Provision of services 566.04
(2) Information of related lease
The Company as lessor:
Unit: RMB
Type of assets Lease income recognized Lease income recognized
Name of lessee
leased in the current period in the previous period
Shenzhen Renfu Tellus Automobiles Service Co.Lease of houses 5190476.19 5190476.11
Ltd.Shenzhen SDG Microfinance Co. Ltd. Lease of houses 1101847.98 1020346.44
Shenzhen Yuepengjin Jewelry Co. Ltd. Lease of houses 357182.10 1886387.76
Shenzhen SDG Service Co. Ltd. Lease of houses 153792.04 99521.16
Shenzhen SDG Tellus Property Management Co.Lease of houses 163762.85 158518.11
Ltd.Shenzhen Yongtong Xinda Testing Equipment
Lease of houses 8000.00 32000.04
Co. Ltd.Safe deposit box
Shenzhen Torch Spark Plug Industry Co. Ltd. 2293.58
leasing
Shenzhen Zhongminglong Investment Co. Ltd. Lease of houses 52231.80
Shenzhen Zhigu Jinyun Technology Co. Ltd. Lease of houses 7428.58
(3) Remuneration of key management personnel
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Remuneration of key management
4680300.006993000.00
personnel
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Item name Related party Provisions for Book Provisions for
Book balance
bad debts balance bad debts
Accounts receivable Beijing Caishikou Department Store 544715.30 5447.15 656267.50 6562.68
209Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd.Accounts receivable Shenzhen SDG Service Co. Ltd. 1043536.03 10435.36
Shenzhen Jinliantong Digital
Accounts receivable 246015.46 2460.15
Technology Co. Ltd.Shenzhen SDG Tellus Property
Accounts receivable 127.66 1.28
Management Co. Ltd.Shenzhen SDG Microfinance Co.Accounts receivable 142112.35 1421.12
Ltd.Shenzhen Yuepengjin Jewelry Co.Accounts receivable 1401995.50 14019.96
Ltd.Guoren Property & Casualty
Prepayments 162704.37 93081.75
Insurance Co. Ltd.Prepayments Shenzhen SDG Service Co. Ltd. 7200.00
ISSTech Information Technology
Prepayments 593247.17
Co. Ltd.Shenzhen SDG Engineering
Prepayments 21226.42
Management Co. Ltd.Shenzhen SDG Liming
Other receivables 2886.00 2886.00 2886.00 2886.00
Optoelectronics (Group) Co. Ltd.Shenzhen SDG Tellus Property
Other receivables 18834.77 3641.74 33318.36 1473.18
Management Co. Ltd.Shenzhen Tellus Xinyongtong
Other receivables 114776.33 114776.33 114776.33 114776.33
Automobile Service Co. Ltd.Shenzhen Telixing Investment Co.Other receivables 733103.55 36057.45 259566.39 2595.66
Ltd.Shenzhen Yongtong Xinda Testing
Other receivables 531882.24 531882.24 531882.24 531882.24
Equipment Co. Ltd.Shenzhen Zhigu Jinyun Technology
Other receivables 50000.00 500.00
Co. Ltd.Other receivables Shenzhen ZHL Industrial Co. Ltd. 633580.65 6335.81 2607443.00 26074.43
Shenzhen Tellus Automobile Service
Other receivables 1360390.00 1360390.00 1360390.00 1360390.00
Chain Co. Ltd.Shenzhen Xiandao New Materials
Other receivables 660790.09 660790.09 660790.09 660790.09
Co. Ltd.Long-term Shenzhen Tellus Automobile Service
6146228.916146228.916146228.916146228.91
receivables Chain Co. Ltd.
(2) Payables
Unit: RMB
Period-end book Period-beginning
Item name Related party
balance book balance
Accounts payable Shenzhen Wahlai Decoration & Furniture Co. Ltd. 5371011.83 334493.34
Accounts payable Shenzhen SDG Service Co. Ltd. 3865062.67 3368791.51
Accounts payable Shenzhen SDG Engineering Management Co. Ltd. 1365692.04 79000.00
Accounts payable Shenzhen Tellus-Gmond Investment Co. Ltd. 200000.00
Accounts payable Shenzhen Zhigu Jinyun Technology Co. Ltd. 45652.00 53714.23
Shenzhen Machinery & Equipment Import & Export
Accounts payable 45300.00 45300.00
Co. Ltd.Accounts payable Shenzhen Yuepengjin Jewelry Co. Ltd. 28000.00 20680.00
Accounts payable Shenzhen ZHL Industrial Co. Ltd. 669.57 212993.43
Accounts payable Shenzhen SDG Real Estate Co. Ltd. 6054855.46
Accounts payable Shenzhen SDG Tellus Property Management Co. Ltd. 336533.57
Advances from customers Shenzhen SDG Microfinance Co. Ltd. 42625.39
Advances from customers Shenzhen SDG Tellus Property Management Co. Ltd. 1243.34
Advances from customers Shenzhen Yongtong Xinda Testing Equipment Co. 68.00
210Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ltd.Advances from customers Shenzhen SDG Engineering Management Co. Ltd. 21226.42
Other payables Hongkong Yujia Investment Limited 2255339.58 2146404.58
Shenzhen Machinery & Equipment Import & Export
Other payables 1575452.52 1554196.80
Co. Ltd.Other payables Shenzhen Longgang Tellus Real Estate Co. Ltd. 1095742.50 1095742.50
Other payables Shenzhen Renfu Tellus Automobiles Service Co. Ltd. 833334.00 833334.00
Other payables Shenzhen Tellus Yangchun Company 476217.49 476217.49
Other payables Shenzhen SDG Tellus Property Management Co. Ltd. 441842.84 15841.59
Other payables Shenzhen Yuepengjin Jewelry Co. Ltd. 388102.00
Other payables Shenzhen SDG Microfinance Co. Ltd. 237804.66 237804.66
Other payables Shenzhen Wahlai Decoration & Furniture Co. Ltd. 150929.85 401140.08
Other payables Shenzhen SDG Engineering Management Co. Ltd. 148302.24 149338.46
Other payables Shenzhen Torch Spark Plug Industry Co. Ltd. 143746.10 2000.00
Other payables Shenzhen SDG Service Co. Ltd. 50506.00 40992.00
Other payables Shenzhen SDG Urban Renewal Investment Co. Ltd. 28766.05 23930.50
Other payables Shenzhen Zhongminglong Investment Co. Ltd. 14100.00
Shenzhen Special Economic Zone Development Group
Other payables 3000.00 3000.00
Co. Ltd.Shenzhen Shuntian Electric Vehicle Technology
Other payables 2000.00
Development Co. Ltd.Other payables Shenzhen Tellus Automobile Service Chain Co. Ltd. 800.00 800.00
Shenzhen Yongtong Xinda Testing Equipment Co.Other payables 5602.99
Ltd.Other payables Shenzhen SDG Huari Automobile Enterprise Co. Ltd. 11436392.71
XV. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
(1) Capital commitment
As of December 31 2024 the Company had no significant capital commitments.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
As of December 31 2024 the Company had no pending litigation external guarantees and other
contingencies that should be disclosed.
(2) In case of no important contingencies to be disclosed a description shall be given
The Company has no important contingencies to be disclosed.XVI. Events after the Balance Sheet Date
1. Profit distribution
Number of dividends per 10 shares to be distributed (RMB) 1.00
211Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Number of dividends per 10 shares declared after deliberation
1.00
and approval (RMB)
According to the proposal passed in the tenth meeting of the
tenth Board of Directors of the Company on March 26 2025
regarding the "Proposal on the Profit Distribution Plan for the
Year 2024" the Company intends to distribute a cash dividend
Profit distribution scheme of CNY 1.00 (including tax) for every 10 shares to all
shareholders based on the total share capital of 431058320
shares as of December 31 2024. The total cash dividend
distribution amounted to CNY43105832.00. There will be no
bonus shares issued and no capital reserve converted into share
capital for the current year.
2. Descriptions for other events after the balance sheet date
As of March 26 2025 the Company will have no other post-balance sheet events that should be
disclosed.XVII. Other Important Matters
1. Segmented information
(1) Determination basis and accounting policy of reporting segments
According to the Company's internal organizational structure management requirements and
internal reporting system the business of the Company is divided into four reporting segments.These reporting segments are determined based on the financial information required by the
Company's daily internal management. The Group's management regularly evaluates the
operating results of these reporting segments to determine the allocation of resources to them and
evaluate their performance.The reporting segments of the Company include:
(1) Jewelry sales and services and wholesale and retail of gold and jewelry;
(2) Leasing and services real estate and commercial real estate leasing;
(3) Vehicle sales and 4S store-based sales of vehicles;
(4) Vehicle maintenance and detection and 4S store-based detection and maintenance of vehicles;
The segment reporting information is disclosed according to the accounting policy and
measurement standard adopted when each segment reports to the management and the
accounting policy and measurement basis are in correspondence with those of formulating
financial statements.
(2) Financial information of reporting segments
Unit: RMB
212Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Autom Vehicle inspection
Leasing and Jewelry wholesale Inter-segment
Item obile maintenance and Total
services and retail services offset
sales testing
Operating
297565080.672320842052.78-4728929.082613678204.37
revenue
Operating
106803428.992273354439.85-3393568.782376764300.06
cost
Total
2815496452.17540229156.29-761266370.572594459237.89
assets
Total
513961364.49258257775.16-75485873.49696733266.16
liabilities
XVIII. Notes to Major Items of the Parent Company’s Financial Statements
1. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 17614712.56 22182052.01
1-2 years 2352446.33 124487.53
2 to 3 years 77741.87
Over 3 years 484803.08 488163.08
More than 5 years 484803.08 488163.08
Total 20529703.84 22794702.62
(2) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Account
s
receivab
le with
484803.484803.484803.484803.
provisio 2.36% 100.00% 2.13% 100.00%
08080808
n for bad
debts on
a single
basis
Includ
ing:
Account 200449 330869. 197140 223098 229707. 22080197.64% 1.65% 97.87% 1.03%
s 00.76 94 30.82 99.54 30 92.24
213Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
receivab
le for
which
provisio
n for bad
debts is
made by
portfolio
Includ
ing:
Includin
g: 200449 330869. 197140 223098 229707. 220801
97.64%1.65%97.87%1.03%
Ageing 00.76 94 30.82 99.54 30 92.24
portfolio
205297815673.197140227947714510.220801
Total 100.00% 3.97% 100.00% 3.13%
03.840230.8202.623892.24
Provision for bad debts made on an individual basis
Unit: RMB
Beginning balance Ending balance
Description Book Provisions for Book Provisions for Proportion of Reasons for
balance bad debts balance bad debts provision provision
Long account
Shenzhen Bijiashan receivable age and
172000.00172000.00172000.00172000.00100.00%
Club Co. Ltd. expected to be
unrecoverable
Long account
receivable age and
Gong Yanqing 97806.64 97806.64 97806.64 97806.64 100.00%
expected to be
unrecoverable
Long account
Guangzhou Tianhe
receivable age and
Lemin Computer 86940.00 86940.00 86940.00 86940.00 100.00%
expected to be
Center
unrecoverable
Long account
receivable age and
Others 128056.44 128056.44 128056.44 128056.44 100.00%
expected to be
unrecoverable
Total 484803.08 484803.08 484803.08 484803.08
Provision for bad debts made by portfolio: account receivable age portfolio
Unit: RMB
Ending balance
Description
Book balance Provisions for bad debts Proportion of provision
Within 1 year 17437667.82 174376.68 1.00%
1-2 years 2352446.33 117622.32 5.00%
2 to 3 years 77741.87 38870.94 50.00%
Over 3 years
Total 19867856.02 330869.94
Whether to accrue bad debt provision of accounts receivable according to expected credit loss:
□Applicable □ Not applicable
Unit: RMB
Provisions for bad Stage I Stage II Stage III
Total
debts Expected credit losses Expected credit loss Expected credit loss throughout
214Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
for the next 12 months throughout the duration (no the duration (credit impairment
credit impairment occurs) has occurred)
Balance on January 1
229707.30484803.08714510.38
2024
Balance on January 1
2024 in the current
period
Provision in the current
101162.64101162.64
period
Balance as of
330869.94484803.08815673.02
December 31 2024
(3) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Beginning Amount of change during the current period
Type Ending balance
balance Provision Recovery or reversal Write-off Others
Provisions for bad debts 714510.38 101162.64 815673.02
Total 714510.38 101162.64 815673.02
(4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers
Unit: RMB
Period-end Proportion in total Period-end balance of
Period-end Period-end
balance of ending balance of bad debt proportion of
balance of balance of
Company name accounts accounts receivable accounts receivable and
accounts contract
receivable and and contractual impairment provision
receivable assets
contract assets assets of contractual assets
Zhongbao Jinyuan
(Shenzhen) Industrial 1461484.68 1461484.68 7.12% 146148.47
Development Co. Ltd.Chow Sang Sang (China)
1320000.461320000.466.43%132000.05
Co. Ltd.Shenzhen Helin Jewelry
1192639.281192639.285.81%119263.93
Co. Ltd.Shenzhen Xinyufu
526304.98526304.982.56%52630.50
Jewelry Co. Ltd.Shenzhen Le En Ai
520147.37520147.372.53%17626.37
Jewelry Co. Ltd.Total 5020576.77 5020576.77 24.45% 467669.32
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 1305581.86
Other receivables 2839370.67 46126945.18
Total 2839370.67 47432527.04
215Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or the investee) Ending balance Beginning balance
China Pufa Machinery Industry Co. Ltd. 1305581.86
Total 1305581.86
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Project (or the Ending original Account Reason for no Whether impairment has occurred and the basis
investee) value receivable age recovery for determining impairment
The company has huge losses in its financial
China Pufa Machinery positions and operating conditions and the
1305581.86 2-3 years Not paid yet
Industry Co. Ltd. dividends receivable may not be recovered so
full impairment is accrued.Total 1305581.86
3) Classification and disclosure through the method for recognizing bad debt
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Provisions for bad
Book balance Provisions for bad debts Book balance
debts
Type Book Book
Proportio
Proporti Proportion value value
Amount Amount Amount Proportion Amount n of
on of provision
provision
Provisio
n for bad
debts 130558 100.00 130558
100.00%0.00
made on 1.86 % 1.86
a single
basis
Incl
uding:
Incl
uding:
130558100.00130558
Total 100.00% 0.00
1.86%1.86
Provision for bad debts made on an individual basis
Unit: RMB
Beginning balance Ending balance
Description Provisions for Provisions for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
China Pufa The company's
Machinery 1305581.86 1305581.86 1305581.86 100.00% financial
Industry Co. position is poor
216Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ltd.Total 1305581.86 1305581.86 1305581.86
Bad debt provision made according to the general model of expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provisions for bad debts Expected credit throughout the duration throughout the duration Total
losses for the
(no credit impairment (credit impairment has
next 12 months
occurs) occurred)
Balance on January 1 2024 in the
current period
Provision in the current period 1305581.86 1305581.86
Balance as of December 31 2024 1305581.86 1305581.86
Changes in book balance with significant amount changed of loss provision in the reporting period
□Applicable □ Not applicable
China Pufa Machinery Industry Co. Ltd. has huge losses in its financial position and operating conditions and
the dividends receivable may not be recovered so full impairment is accrued.
4) Bad debt provision provided recovered or reversed in the current period
Unit: RMB
Amount of change during the current period
Beginning Ending
Type
balance Recovery Write-off orProvision Other changes balance
or reversal cancellation
Provisions for bad debts 1305581.86 1305581.86
Total 1305581.86 1305581.86
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of payment Period-end book balance Period-beginning book balance
Other temporary payments receivable 13967525.96 15738436.97
Deposits and security deposits 1556456.36 1774070.79
Concerned intercourse funds within the
61.0042400084.74
consolidation scope of receivables
Total 15524043.32 59912592.50
(2) Disclosure by account receivable age
Unit: RMB
Account receivable age Period-end book balance Period-beginning book balance
Within 1 year (inclusive) 404467.63 43614137.53
1-2 years 2557254.64 1937642.51
2 to 3 years 1091.61 643606.04
Over 3 years 12561229.35 13717206.42
217Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
3 to 4 years 39273.66
More than 5 years 12561229.35 13677932.76
Total 15524043.23 59912592.50
3) Classification and disclosure through the method for recognizing bad debt
Unit: RMB
Ending balance Beginning balance
Provisions for bad Provisions for bad
Book balance Book balance
debts debts
Type Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Provisio
n for bad
debts 125115 125115 136446 136446
80.59%100.00%0.0022.77%100.00%
made on 24.83 24.83 41.06 41.06
a single
basis
Includ
ing:
Provisio
n for bad
debts
301251173147.283937462679141006.461269
made on 19.41% 5.75% 77.23% 0.30%
8.40730.6751.442645.18
a
portfolio
basis
Includ
ing:
Account
receivab 145606 63267.3 139279 209379 72610.5 202118
9.38%4.35%3.49%3.47%
le age 2.04 6 4.68 5.91 1 5.40
portfolio
Portfolio
of
deposit
and 155645 109880. 144657 177407 68395.7 170567
10.03%7.06%2.96%3.86%
security 6.36 37 5.99 0.79 5 5.04
deposit
receivab
le
Related
intercour
se funds
within 424000 424000
70.77%
the 84.74 84.74
consolid
ation
scope
155240126846283937599125137856461269
Total 100.00% 81.71% 100.00% 23.01%
43.2372.560.6792.5047.3245.18
218Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Provision for bad debts made on a portfolio basis:
Unit: RMB
Ending balance
Description
Book balance Provisions for bad debts Proportion of provision
Account receivable age
1456062.0463267.364.35%
portfolio
Portfolio of deposit and
1556456.36109880.377.06%
security deposit receivable
Total 3012518.40 173147.73
Bad debt provision made according to the general model of expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provisions for bad debts Expected credit losses throughout the duration throughout the duration Total
for the next 12
(no credit impairment (credit impairment has
months
occurs) occurred)
Balance on January 1 2024 141006.26 13644641.06 13785647.32
Balance on January 1 2024
in the current period
Provision in the current
32141.4732141.47
period
Reversal in the current
1145709.331145709.33
period
Other changes 12593.10 12593.10
Balance as of December
173147.7312511524.8312684672.56
312024
Division basis at each stage and proportion of bad debt provision accrual
Changes in book balance with significant amount changed of loss provision in the reporting period
□ Applicable□ Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the reporting period:
Unit: RMB
Amount of change during the current period
Beginning
Type
balance Recovery or Write-off or
Ending balance
Provision Others
reversal cancellation
Provisions for
13785647.3232141.471145709.3312593.1012684672.56
bad debts
Total 13785647.32 32141.47 1145709.33 12593.10 12684672.56
5) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Period-end balance
Ending Account
Company name Nature ending balance of of provision for
balance receivable age
other receivables bad debts
Shenzhen Zhonghao (Group) Intercourse 5000000.00 Over 3 years 32.21% 5000000.00
219Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Co. Ltd. funds
Shenzhen Jinbeili Electric Intercourse
2706983.51 Over 3 years 17.44% 2706983.51
Appliance Co. Ltd. funds
Shenzhen Petrochemical Group Intercourse
1927833.34 Over 3 years 12.42% 1927833.34
Co. Ltd. funds
Shenzhen Jinzhou Precision Security
1515467.96 Over 3 years 9.76% 75773.40
Technology Corp. deposit
Shenzhen Xiandao New Intercourse
660790.09 Over 3 years 4.26% 660790.09
Materials Co. Ltd. funds
Total 11811074.90 76.09% 10371380.34
3. Long-term equity investments
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
715566774.411956000.00713610774.41696131539.121956000.00694175539.12
subsidiaries
Investment in
associates and 94878995.52 9787162.32 85091833.20 86298649.89 9787162.32 76511487.57
joint ventures
Total 810445769.93 11743162.32 798702607.61 782430189.01 11743162.32 770687026.69
(1) Investment in subsidiaries
Unit: RMB
Period- Period- Changes in the current period
Period-end Period-end
beginning beginning
Reduced Provision balance balance ofInvestee balance balance of Additional
investment for Others (book impairment(book impairment investment
s impairment value) provisionvalue) provision
Shenzhen
SDG Tellus 31152888. 31152888.Real Estate 87 87
Co. Ltd.Shenzhen
Tellus
Chuangyin 3000000.0 2473691.4
526308.52
g 0 8
Technolog
y Co. Ltd.Shenzhen
Tellus
Xinyongto
ng 2883644.2 2883644.2
Automobil 6 6
e
Developme
nt Co. Ltd.Shenzhen 36968052 36968052
Zhongtian 2.90 2.90
220Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Industry
Co. Ltd.Shenzhen
Automobil
1262510740000000.86251071.
e Industry
1.570057
and Trade
Co. Ltd.Shenzhen
SDG Huari
Automobil 61908926. 61908926.e 77 77
Enterprise
Co. Ltd.Shenzhen
Huari
Automobil 1807411.5 1807411.5
e Sales and 2 2
Service
Co. Ltd.Shenzhen
Xinyongto
ng Motor
4900000.04900000.0
Vehicle
00
Inspection
Equipment
Co. Ltd.Shenzhen
Tellus
Treasury 50000000. 50000000.Supply 00 00
Chain Tech
Co. Ltd.Shenzhen
Hanli High
1956000.01956000.0
Tech
00
Ceramics
Co. Ltd.Shenzhen
Jewelry
32500000.32500000.
Industry
0000
Service
Co. Ltd.Guorun
Gold 72000000. 72000000.Shenzhen 00 00
Co. Ltd.
694175531956000.061908926.42473691.713610771956000.0
Total
9.12077484.410
(2) Investment in associates and joint ventures
Unit: RMB
Period Period Changes in the current period Period Period
Investe - - Additi Reduc Invest Adjust Other Cash Provisi -end -end
e beginn beginn onal ed ment ment equity divide on for Others balanc balanc
ing ing invest invest profit to change nd or impair e e of
221Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
balanc balanc ment ments or loss other s profit ment (book impair
e e of recogn compr declare value) ment
(book impair ized ehensi d to be provisi
value) ment throug ve distrib on
provisi h the incom uted
on equity e
metho
d
I. Joint ventures
Shenz
hen
Tellus-
Gmon 49250 21965 15000 56216
d 845.0 159.2 000.0 004.2
Invest 6 0 0 6
ment
Co.Ltd.Shenz
hen
Telixin
1330213686
g 38459
311.6903.3
Invest 1.77
07
ment
Co.Ltd.
62553223491500069902
Subtot
156.6750.9000.0907.6
al
6703
II. Associates
Shenz
hen
Renfu
Tellus 13958 15188
1230
Autom 330.9 925.5
594.66
obiles 1 7
Servic
e Co.Ltd.Hunan
Chang
yang 1810 1810
Industr 540.70 540.70
ial Co.Ltd.Shenz
hen
Jieche
ng 3225 3225
Electro 000.00 000.00
nics
Co.Ltd.Shenz
hen 4751 4751
Xianda 621.62 621.62
o New
222Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Materi
als
Co.Ltd.Shenz
hen
Tellus
Autom
obile
Servic
e
Chain
Co.Ltd.
1395815188
Subtot 9787 1230 9787
330.9925.5
al 162.32 594.66 162.32
17
76511235801500085091
97879787
Total 487.5 345.6 000.0 833.2
162.32162.32
7300
Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses
□ Applicable□ Not applicable
Whether the recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the information or external information used
in the impairment test of previous years
Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in that year
4. Operating revenue and operating cost
Unit: RMB
Amount incurred in the current period Amount Incurred in the previous period
Item
Revenue Costs Revenue Costs
Main business 118323197.59 51537706.69 86993917.15 39689422.24
Total 118323197.59 51537706.69 86993917.15 39689422.24
5. Investment income
Unit: RMB
Item Amount incurred in the current period Amount Incurred in the previous period
Income from long-term equity
investments calculated by the cost 71225000.00 69369094.20
method
Income from long-term equity
investments calculated through the 23580345.63 19872836.15
equity method
Investment income from trading
5549257.073132190.40
financial assets during the holding period
Interest income from large-sum
3393388.894921596.99
certificates of deposit
223Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Profit from re-measurement of residual
equity at fair value after loss of the right 67398061.79
of control
Total 103747991.59 164693779.53
XIX. Supplementary Information
1. Breakdown of non-recurring profits and losses of the current period
□Applicable □ Not applicable
Unit: RMB
Item Amount Notes
Profits and losses from disposal of non-current assets -227.20
Government subsidies included in the current gains and losses (excluding those that are closely
related to the Company's normal business operations in line with national policies and regulations
6524396.47
and granted in accordance with defined criteria with a continuous influence on the Company's
gains and losses)
Gains or losses from changes in the fair value of financial assets and financial liabilities held by the
non-financial company as well as gains or losses from the disposal of the financial assets and -10293994.77
financial liabilities except for effective hedging related to normal operations of the Company
Reserves of impairment provision for account receivables individually tested for impairment 6856854.34
Other non-operating revenues and expenditures apart from the aforesaid items 1704993.23
Less: Effect on income tax -9511450.05
Effect on minority shareholders' equity (after tax) 4144488.72
Total 10158983.40 --
Specific conditions of other gains or losses conforming to the definition of non-recurring gains or losses:
□ Applicable□ Not applicable
The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses
?Applicable□Not Applicable
Item Amount involved(RMB) Reason
Due to the price fluctuation risk related to gold effective hedging of gold futures is a means
for Guorun Gold and Tellus Treasury subsidiaries of the Company to avoid relevant risks.This activity falls under normal proprietary business operations. Therefore based on the nature
and characteristics of its normal business operations the Company has classified the following
Effective -16490969.27 items listed in the Explanatory Announcement on Information Disclosure by Companieshedging Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) as
recurring profit and loss items: effective hedging related to the normal operations of non-
financial enterprises; gains and losses from changes in the fair value of financial assets and
financial liabilities held; and gains and losses from the disposal of financial assets and
financial liabilities.Refund of
handling According to the Explanatory Announcement on Information Disclosure by Companies
charges Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision)
for 73439.68 the refund of handling fees withheld for individual income tax received by the Company and
individual its subsidiaries is categorized as income related to routine activities. As it is neither of a special
income nature nor incidental it is classified as a recurring profit or loss item.tax
224Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. Return on net assets and earnings per share
Earnings per share
Weighted average
Profit during the reporting period
return on net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributed to ordinary
8.21%0.31700.3170
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
7.60%0.29340.2934
deduction of non-recurring profit or
loss
3. Difference in accounting data under domestic and foreign accounting rules
(1) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the international accounting standards and Chinese accounting standards
□ Applicable□ Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the foreign accounting standards and Chinese accounting standards
□ Applicable□ Not applicable
(3) Specify the reasons for differences in accounting data under domestic and foreign accounting
standards; if the adjustment is made to data audited by the overseas audit firm specify the name of the
audit firm
□ Applicable□ Not applicable
225
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