GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
SEMI-ANNUAL REPORT 2016
2016-054
August 2016
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well
as the directors, supervisors and senior management of Guangdong Jadiete Holdings Group
Company Limited (the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of the Report, and shall be jointly and severally liable for any false representation,
misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
Ding Lihong, head of the Company, Chen Jincai, accounting head for the Report, and Zheng
Guangde, head of the accounting organ (head of accounting), hereby guarantee that the Financial
Report carried in the Report is factual, accurate and complete.
The Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Contents
Semi-annual Report 2016........................................................................................................................ 1
Section I Important Statements, Contents and Terms....................................................................... 2
Section II Corporate Profile....................................................................................................................5
Section III Highlights of Accounting Data and Financial Indicators...............................................7
Section IV Report by the Board of Directors....................................................................................... 9
Section V Significant Events................................................................................................................. 15
Section VI Share Changes and Shareholders’ Profile.......................................................................24
Section VII Preference Shares.............................................................................................................. 29
Section VIII Directors, Supervisors and Senior Management........................................................30
Section IX Financial Report..................................................................................................................32
Section X Documents Available for Reference.................................................................................120
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Terms
Term Meaning
Company, the Company Guangdong Jadiete Holdings Group Company Limited
CSRC China Securities Regulatory Commission
SZSE, the stock exchange Shenzhen Stock Exchange
RMB Renminbi
Reporting Period 1 January 2016-30 June 2016
Shenghengchang Huifu Shenzhen Shenghengchang Huifu Industrial Co., Ltd.
Risheng Chuangyuan Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
Chinese Gold Nobility Shenzhen Chinese Gold Nobility Jewelry Co., Ltd.
Taihengyuan Guangdong Taihengyuan Industrial Co., Ltd.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
Stock name JHG-B Stock code 200168
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 广东舜喆（集团）股份有限公司
Abbr. (if any) 舜喆
Company name in English (if
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
any)
Abbr. (if any) JHG
Legal representative Ding Lihong
II Contact information
Board Secretary Securities Representative
Name Xu Wei
Room 1201 of China Railway South
Address Headquarters Building, No. 3333 of
Zhongxin Rd., Nanshan District, Shenzhen
Tel. 0755-82250045
Fax 0755-82251182
E-mail xw@200168.com
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting Period?
5
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Report and the location where the Report is placed did not change during the Reporting Period. The said information can be found in
the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
√ Applicable □ Not applicable
Business license Registration code Organizational
Registration date Registration place
No. of taxation code
Meixin Industrial
Park, Junbu Town,
Opening registered Puning City,
1997-11-17 445200000034656 445281231131833 23113183-3
information Guangdong
Province,
P.R.China
Meixin Industrial
Park, Junbu Town,
Closing registered Puning City, 914452002311318 914452002311318 914452002311318
2016-05-18
information Guangdong 335 335 335
Province,
P.R.China
4. Other information
Changes in other information in the Reporting Period
√ Applicable □ Not applicable
Upon the Shenzhen Stock Exchange approval for our stock name change application, since 23 May 2016, our stock name has been
changed from “Rieys-B” (“ 雷 伊 B” in Chinese) to “JHG-B” (“ 舜 喆 B” in Chinese) and our stock code (200168) has remained
unchanged. Please find the relevant announcement disclosed on 20 May 2016 on the designated website
(http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202333396?announceTime=2016-05-23).
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section III Highlights of Accounting Data and Financial Indicators
I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 200,186,975.70 84,853,785.15 135.92%
Net profit attributable to shareholders of
-4,308,101.71 15,384,955.64 -128.00%
the Company (RMB)
Net profit attributable to shareholders of
the Company excluding exceptional profit -4,157,073.90 15,465,875.40 -126.88%
and loss (RMB)
Net cash flows from operating activities
3,793,814.95 25,678,719.34 -85.23%
(RMB)
Basic earnings per share (RMB/share) -0.01 0.05 -120.00%
Diluted earnings per share (RMB/share) -0.01 0.05 -120.00%
Weighted average return on equity (%) -1.19% 1.47% -2.66%
As at the end of the
As at the end of last year +/- (%)
Reporting Period
Total assets (RMB) 475,470,217.52 474,516,644.99 0.20%
Net assets attributable to shareholders of
360,128,578.10 364,436,679.81 -1.18%
the Company (RMB)
II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under
international and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas
and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
III Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Profit/loss on fair value changes of transactional financial assets
and liabilities & investment income from disposal of transactional Recognized investment loss on
financial assets and liabilities as well as financial assets available -1,522.94 disposal of transactional financial
for sale, except for effective hedges related to normal business assets in the Reporting Period
operations of the Company
Non-operating revenue and expense other than the above -199,999.56
Less: Corporate income tax -50,380.63
Minority interests (after tax) -114.06
Total -151,027.81 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
For the Reporting Period, we achieved operating revenues of RMB200.19 million, representing a surge of 136% from RMB84.85
million of the same period of last year, mainly due to a changed main business structure; net profit attributable to the Company of
RMB-4.31 million, down -128% from RMB15.38 million from a year earlier, mainly because the return on investment decreased
despite the fact that Chinese Gold Nobility saw growth in its profit.
(I) Main business:
As the rapid growth changed into medium speed growth of the China economy, the consequences of the extensive development in
the previous year appeared. In addition, the changes of the consumption habits, the increase of the stores cost, etc. caused
increasingly fierce competition in the industry, with the operating performances declined overally as well as the traditional operating
structure and the products group mode were facing with great challenge. To put it simply, it was “the industry self-adjusting period
just met with the economic downturn”, which definitely would led the industry step in the significant reformation and shuffle period.
In 2016, the operating environment for the industry is not considered optimistic, but there are both challenges and opportunities. And
facing with such fierce situation and widely opportunities, Chinese Gold Nobility on one hand promoted the product suites with the
featured series “Super Diamond” adopted new type technique with competitiveness through the goods adjustment, positively
developed and stabilized the sales of the current franchised outlet and on the other side, made great efforts in the “Internet +” mode
and developed entire network marketing strategy with Tmall flagship stores, mobile stores and Wechat Business platform launched in
succession, further enriching its business models, which perfectly carried out and committed the operating concept of “to put effort
into the R&D design so as to conquer the product homogeneity predicament; to optimize the products structure so as to get rid of the
predicament of the low value-added products; to adjust the goods structure so as to conquer the sales downward predicament; to
adjust the commercial mode so as to conquer the market expansion predicament; to put effort into the creation of the customers’
requirements so as to conquer the weak passenger flow viscosity predicament” that enacted at the year-begin, which achieved some
good results. And the objectives have been accomplished satisfactorily.
(II) Assets disposal:
The Company had signed the Assets Transfer Contract with Guangdong Taihengyuan Industrial Co., Ltd. (hereinafter referred to as
“Taihengyuan” for short) on 5 January 2015. Taihengyuan paid the deposit and the second transfer amount of RMB40 million for the
Company according to the contact. Owning to the influences of the subjective and objective factors such as the macro environment
changes and the real estate fluctuation, the Company agreed Taihengyuan to postpone the transaction of the assest transfer work after
multiple negotiations. Currently, both parties are to submit the assets transfer materials to relevant governmental departments.
(III) Development strategies:
During the share trading halt in the Reporting Period, the Company further improved the relevant procedures according to the actual
progress and performed the duty of information disclosure in a timely manner. The Company, together with the relevant intermediary
agencies, vigorously promoted the progress of the events and worked hard from the proposal design to proposal communication till
the revision. Because the B-share-related significant events being executed without any examples, thorough discussion is needed for
the relevant plans. The Company hopes to solve the left problems that are hindering its development once and for all through this
significant event in planning, so as to promote sustained and rapid development.
II Analysis of main business
YoY movements in major financial data
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Unit: RMB
Main reason for
Reporting Period Same period of last year YoY +/-%
movement
Recognized income of
Operating revenues 200,186,975.70 84,853,785.15 135.92%
the gold jewelry sales
Recognized income of
Operating costs 190,594,842.57 73,218,005.25 160.31%
the gold jewelry sales
Selling expenses 1,189,892.46 171,040.18 595.68% Sales cost increased
Administrative expenses 6,961,491.74 5,025,498.03 38.52% Rental increased
Financial expenses 739,933.86 692,150.31 6.90%
Income tax expenses 1,848,553.62 1,981,720.91 -6.72%
Net cash flows from Cash received from the
3,793,814.95 25,678,719.34 -85.23%
operating activities gold sales increased
Net cash flows from Purchased the fixed
-1,390,198.86 47,587,831.71 -102.92%
investing activities assets
No financing activities
Net cash flows from
0.00 15,918,333.46 -100.00% occurred during the
financing activities
Reporting Period
Due to the decrease of
Net increase in cash and the net cash inflow from
2,403,682.09 89,184,879.59 -97.30%
cash equivalents the financing and
investment activities
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Review the progress of the previously disclosed business plan in the Reporting Period:
During the Reporting Period, the Company developed the business work according to the established operating plan, with the specific
details in “I Overview” of the Report by the Board of Directors.
III Breakdown of main business
Unit: RMB
Operating Gross profit
Operating Gross profit Operating cost:
Operating cost revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
By business segment
Real estate 0.00 0.00 0.00% -100.00% -100.00% -30.87%
Gold jewelry 200,186,975.70 190,594,842.57 4.79% -38.06% -39.17% 1.73%
Classified by product:
Gold jewelry 200,186,975.70 190,594,842.57 4.79% -38.06% -39.17% 1.73%
Classified by region:
Sales of the
0.00 0.00 0.00% -100.00% -100.00% -30.87%
Puning real estate
Sales of the
Shenzhen gold 200,186,975.70 190,594,842.57 4.79% -38.06% -39.17% 1.73%
jewelry
IV Core competitiveness analysis
No significant changes occurred to our core competitiveness in the Reporting Period.
V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Securities investments
√ Applicable □ Not applicable
Profit/loss
Initial Opening Opening Closing Closing Closing
in the
Variety of Code of Name of investmen securities- securities- securities- securities- book Accounti Securities
Reporting
securities securities securities t cost holdings holdings holdings holdings value ng title source
Period
(RMB) (share) (%) (share) (%) (RMB)
(RMB)
Internatio Tradable Bought
Stocks 000516 nal 4,466.00 0 0.00% 0 0.00% 0.00 -1,532.94 financial from
medicine assets secondar
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
y market
Total 4,466.00 0 -- 0 -- 0.00 -1,532.94 -- --
Disclosure date of the
announcement about the board’s
consent for the securities
investment
Disclosure date of the
announcement about the general
meeting’s consent for the
securities investment (if any)
(4) Shareholdings in other listed companies
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Cash management entrustment, derivative financial instrument investments and entrusted loans
(1) Cash management entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Derivative financial instrument investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Entrusted loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Use of raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Main controlled and joint stock companies
√ Applicable □ Not applicable
Main controlled and joint stock companies:
Unit: RMB
12
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Relationship Main
Company Registered Operating Operating
with the Industry products/ser Total assets Net assets Net profit
name capital revenues profit
Company vices
Shenzhen
Chinese
Gold Gold Gold 61,402,948. 65,441,349. 200,186,97 7,394,214
Subsidiary 3333.33 5,545,660.86
Nobility jewelry jewelry 33 09 5.70 .04
Jewelry
Co., Ltd.
5. Significant projects invested with non-raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Performance forecast for January-September 2016
Warning of possible loss or considerable YoY movement in the accumulated net profit made during the period-beginning to the end
of the next Reporting Period, as well as the reasons
□ Applicable √ Not applicable
VII Explanation of the Board of Directors and the Board of Supervisors on the
“non-standard” auditor’s report issued by the CPAs firm for the Reporting Period
□ Applicable √ Not applicable
VIII Explanation of the Board of Directors on the issues mentioned in the “non-standard”
auditor’s report issued by the CPAs firm for last year
□ Applicable √ Not applicable
IX Profit distribution in the Reporting Period
Profit distribution plan implemented in the Reporting Period, especially execution and adjustment of any cash dividend plan and any
plan for converting capital reserve into share capital
□ Applicable √ Not applicable
The Company planed not to distribute the cash bonus or bonus shares without any plan for converting capital reserve into share
capital.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
X Preliminary plan for profit distribution and converting capital reserve into share capital for
the Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital for the first half of
the year.
XI Visits paid to the Company for purposes of research, communication, interview, etc.
√ Applicable □ Not applicable
Main discussion and
Date of visit Place of meeting Way of visit Type of visitor Visitor materials provided by the
Company
Inquire of the reasons of the
18 Mar. 2016 the Company By phone Individual Investor listing suspension of the
Company
Inquire of the reasons of the
21 Mar. 2016 the Company By phone Individual Investor listing suspension of the
Company
Inquire of the reasons of the
listing suspension of the
Company and required the
12 Apr. 2016 the Company By phone Individual Investor Company to disclose the
detailed the announcement
on the listing suspension
progress
The progress of the not
detailed disclosed listing
28 Apr. 2016 the Company By phone Individual Investor
suspension announcement
of the Company
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section V Significant Events
I Corporate governance
The actual situation of the Company’s governance did not differ in principle from the Company Law and the relevant CSRC
requirement.
II. Lawsuits
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
There was no such situation of the Company.
Other lawsuits
□ Applicable √Not applicable
III. Media criticism
□ Applicable √ Not applicable
There was no such situation of the Company.
V. Asset transactions
1. Acquisition of assets
□ Applicable √ Not applicable
There was no such situation of the Company.
2. Sales of assets
√ Applicable □ Not applicable
Net Ratio of Relation Whether Whether
profit the net ship or not or not
contribu profit between the the
ted to Impact contribu Related- the ownersh creditor’
Transact
Transact the to the ted by Pricing party transacti ip of the s right Disclo Disclos
Asset Disposal ion price
ion Compan compan the asset principl transacti on party asset and sure ure
sold date (RMB
party y from y (Note to the e on or and the involved liabilitie date index
0’000)
the 3) Compan not Compan has been s
period-b y to the y fully involved
egin to total (applica transferr have
the profit ble for ed been
15
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
disposal related- fully
date party transferr
(RMB transacti ed
0’000) ons)
1. 1. The
Benefit properti
for es
increasi originall
ng the y were
cash the
reserve dedicate
of the d
Properti Compan factory
es such y and of the Announ
as the strength recycled cement
industria ening paper on
l estate the producti Assets
and anti-risk on with Sale
work and the that
shops future factory disclose
located transfor layout d on
Guangd
in mation as well Securiti
ong
Lianyun ability as the No es
Taiheng
Village, 5 Jan. of the height, related 31 Oct. Times,
yuan 6,000 0 0.00% No No No
Junbu 2015 Compan span and relations 2014 Ta
Industria
Town, y. 2. spacing hip Kung
l Co.,
Puning Benefit of each Pao and
Ltd.
which for the building www.cn
originall Assets were info.co
y owing allocatio construc m.cn
to n ted (Annou
Puning optimiza accordin ncemen
Rieys tion of g to the t No.:
Paper the paper 2014-0
Co., Compan producti 22)
Ltd. y for on
solving process
the design
subside require
assets. ments
3. without
Benefit any
for universa
reducing lity and
16
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
the alteratio
future nability.
operatin 2. The
g cost of net book
the value of
Compan the
y. assets
was
RMB48.
68
million
that
there
were
certain
profits
gaining
space
over the
transacti
on price.
3.
Referred
to the
market
situation
of the
local
surroun
ding
industria
l
worksho
p rental,
transacti
ons. 4.
In view
of the
macro
situation
of the
current
real
estate
17
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
industry,
the
location
of the
real
estate,
and the
rather
plenty
of the
factors
affecting
as well
as
alternati
ng the
land
status, it
was not
suitable
for the
develop
ment
and
utilizati
on of
the
real
estate.
3. Business mergers
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Implementation of equity incentive and its influence
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
VII Significant related transactions
1. Related transactions arising from routine operation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-party transactions arising from acquisition and sale of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-party transactions arising from joint investment in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other related transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Guarantees provided by the Company
√ Applicable □ Not applicable
Unit: RMB’0,000
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure
date of Guarante
Actual
relevant Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party announcem guarantee related
guarantee (date of guarantee guarantee or not
ent on the amount party or
agreement)
guarantee not
amount
Five years
from the
independent
Puning Yanlilai 17 Apr.
2,400 14 Apr. 2014 2,400 Mortgage contract (loan No No
Trade Co., Ltd. 2014
contract)
coming into
effect
Five years
from the
Puning independent
14 Nov.
Huafengqiang 1,800 11 Nov. 2014 1,800 Mortgage contract (loan No No
2014
Trade Co., Ltd. contract)
coming into
effect
Total external guarantee line Total actual occurred amount
approved during the Reporting 4,200 of external guarantee during 4,200
Period (A1) the Reporting Period (A2)
Total external guarantee line Total actual external guarantee
that has been approved at the 4,200 balance at the end of the 4,200
end of the Reporting Period Reporting Period (A4)
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
(A3)
Guarantees provided by the Company for its subsidiaries
Disclosure
date of Guarante
Actual
relevant Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party announcem guarantee related
guarantee (date of guarantee guarantee or not
ent on the amount party or
agreement)
guarantee not
amount
Guarantees provided by the subsidiaries for its subsidiaries
Disclosure
date of Guarante
Actual
relevant Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party announcem guarantee related
guarantee (date of guarantee guarantee or not
ent on the amount party or
agreement)
guarantee not
amount
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved Total actual occurred amount
during the Reporting Period 4,200 of guarantee during the 4,200
(A1+B1+C1) Reporting Period (A2+B2+C2)
Total guarantee line that has Total actual guarantee balance
been approved at the end of the 4,200 at the end of the Reporting 4,200
Reporting Period (A3+B3+C3) Period (A4+B4+C4)
Proportion of total guarantee amount (A4+B4+C4) to the net
11.66%
assets of the Company
Of which:
Explanation on possible bearing joint responsibility of
Not applicable
liquidation due to immature guarantee (if any)
Explanation on provision of guarantees for external parties in
Not applicable
violation of the prescribed procedure (if any)
Explanation on guarantee that adopts complex method
(1) Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
There was no such situation of the Company.
3. Other major contracts
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
There was no such situation of the Company.
4. Other major transactions
□ Applicable √ Not applicable
There was no such situation of the Company.
X Commitments made by the Company or any shareholder holding over 5% of the
Company’s shares in the Reporting Period or such commitments carried down into the
Reporting Period
√ Applicable □ Not applicable
Date of
Commitment Term of
Commitment Contents commitment Fulfillment
maker commitment
making
Commitments made in share reform
Commitments made in acquisition
documents or shareholding alteration
documents
Commitments made in time of asset
restructuring
Commitments made in time of IPO or
refinancing
Other commitments made to minority
shareholders
Executed in time Yes
XI Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□Yes √ No
This semi-annual report is not audited.
XII Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Delisting risk due to violation of any law or regulation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
XIV Other significant events
√ Applicable □ Not applicable
XV Corporate bonds
Corporate bonds publicly offered and listed on the stock exchange which were undue before the approval date of the Report or were
due but could not be redeemed in full
No
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section VI Share Changes and Shareholders’ Profile
I Changes in shares
Unit: Share
Before Increase/decrease (+/-) After
Increase
Percentag New Bonus from Percentag
Number Other Subtotal Number
e issues shares capital e
reserve
I. Shares subject to trading 164,025,0 164,025,0
51.48% 0 0 0 0 0 51.48%
moratorium 00 00
1. Shares held by the State 0 0.00% 0 0 0 0 0 0 0.00%
2. Share held by
0 0.00% 0 0 0 0 0 0 0.00%
state-owned corporation
3. Shares held by other 164,025,0 164,025,0
51.48% 0 0 0 0 0 51.48%
domestic corporation 00 00
Among which: shares held 164,025,0 164,025,0
51.48% 0 0 0 0 0 51.48%
by domestic corporation 00 00
Shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
4. Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Among which: Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by foreign corporation
Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
II. Shares not subject to 154,575,0 154,575,0
48.52% 0 0 0 0 0 48.52%
trading moratorium 00 00
1. Renminbi ordinary
0 0.00% 0 0 0 0 0 0 0.00%
shares
2. Domestically listed 154,575,0 154,575,0
48.52% 0 0 0 0 0 48.52%
foreign shares 00 00
3. Overseas 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 shares 318,600,0 100.00% 0 0 0 0 0 318,600,0 100.00%
24
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
00 00
Reasons for share changes
√ Applicable □ Not applicable
Approval for share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, net assets per share attributable to ordinary
shareholders of the Company and other financial indicators over last year and the last Reporting Period
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
Changes in the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Not applicable
II Total number of shareholders and their shareholdings
Unit: share
Total number of preference
Total number of ordinary shareholders who had resumed
shareholders at the end of the 11,543 their voting right at the end of 0
Reporting Period the Reporting Period (if any)
(see note 8)）
Shareholdings of ordinary shareholders with a stake over 5% or top 10 ordinary shareholders
Number Pledged or frozen shares
of Increase/de Number
Shareholdin ordinary crease of of Number of
Name of Nature of g shares shares restricted non-restrict
shareholder shareholder percentage held at the during the ordinary ed ordinary Status Number
(%) end of the Reporting shares shares held
Reporting Period held
Period
Shenzhen
Shenghengchan Domestic
117,855,0 117,855,0
g Huifu non-state-owned 36.99% 0 0 Pledged 117,855,000
00 00
Industrial Co., corporation
Ltd.
Shenzhen Domestic 34,020,00 34,020,00
10.68% 0 0 Pledged 34,020,000
Risheng non-state-owned 0 0
25
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Chuangyuan corporation
Asset
Management
Co., Ltd.
Guotai Junan
Securities Foreign 27,063,10
8.49% 0 0 27,063,103
(Hongkong) corporation 3
Limited
Shenzhen
Domestic
Lianhua Huiren 12,150,00 12,150,00
non-state-owned 3.81% 0 0 Pledged 12,150,000
Industrial Co., 0 0
corporation
Ltd.
Domestic
Su Youhe 2.27% 7,234,469 23,400 7,234,469
individual
Shanghai
Wanguo Foreign
2.15% 6,840,046 1,762,960 6,840,046
Securities (HK) corporation
Limited
China
Everbright Foreign
1.46% 4,665,860 -2,299,250 4,665,860
Securities (HK) corporation
Limited
Domestic
Fan Jiongyang 0.46% 1,451,300 -922,120 1,451,300
individual
Ngai Kwok Pan Foreign individual 0.36% 1,145,816 1,145,816
Domestic
Chen Jinming 0.24% 765,500 765,500 765,500
individual
Strategic investor or general
corporation becoming a top ten
Not applicable
common shareholder due to placing
of new shares (if any) (see note 3)
Shenzhen Shenghengchang Huifu Industrial Co., Ltd., Shenzhen Risheng Chuangyuan Asset
Explanation on associated
Management Co., Ltd. and Shenzhen Lianhua Huiren Industrial Co., Ltd. are related parties
relationship or/and persons acting in
and act-in-concert parties as defined in the Administrative Measures for Shareholding
concert among the above-mentioned
Changes in Listed Companies. Apart from that, it is unknown whether there are any other
shareholders:
related parties or act-in-concert parties.
26
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Particulars about shares held by the top ten common shareholders holding shares not subject to trading moratorium
Type of shares
Name of shareholder Number of tradable shares held at the year-end
Type Number
Domestically
Guotai Junan Securities (Hong
27,063,103 listed foreign 27,063,103
Kong) Limited
share
Domestically
Su Youhe 7,234,469 listed foreign 7,234,469
share
Domestically
Shanghai Wanguo Securities (HK)
6,840,046 listed foreign 6,840,046
Limited
share
China Everbright Securities (HK) Domestically
4,665,860 listed foreign 4,665,860
Limited share
Domestically
Fan Jiongyang 1,451,300 listed foreign 1,451,300
share
Domestically
Ngai Kwok Pan 1,145,816 listed foreign 1,145,816
share
Domestically
Chen Jinming 765,500 listed foreign 765,500
share
Domestically
Chen Jianxing 732,344 listed foreign 732,344
share
Domestically
Han Liang 711,458 listed foreign 711,458
share
Domestically
Chen Zhenqi 701,800 listed foreign 701,800
share
Explanation on associated
relationship or/and persons acting in
concert among the top ten tradable
common shareholders and between Unknown
the top ten tradable common
shareholders and the top ten
common shareholders
27
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Explanation on the top 10
shareholders participating in the
Naught
margin trading business (if any) (see
note 4)
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any
promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
III Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Any shareholding increase plan proposed or implemented by any shareholder or its
act-in-concert parties during the Reporting Period
□ Applicable √ Not applicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase
plan during the Reporting Period.
28
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
29
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section VIII Directors, Supervisors and Senior Management
I Shareholding changes of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There was no change in shareholding of Directors, Supervisors and Senior Management Staffs, for the specific information please
refer to the 2015 Annual Report.
II Changes in directors, supervisors and senior management
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Ding Lihong President Elected 22 Jan. 2016 Qualitative and quantitative
Chen Hongcheng Vice President Elected 22 Jan. 2016 Qualitative and quantitative
Chen Honghai Director Elected 22 Jan. 2016 Qualitative and quantitative
Chen Dongwei Director Elected 22 Jan. 2016 Qualitative and quantitative
Independent
Pan Xiaochun Elected 22 Jan. 2016 Qualitative and quantitative
Director
Independent
Cai Shaohe Elected 22 Jan. 2016 Qualitative and quantitative
Director
Independent
Liu Yong Elected 22 Jan. 2016 Qualitative and quantitative
Director
Supervisory
Yan Mingfei Elected 22 Jan. 2016 Qualitative and quantitative
Board Chairman
Huang Yanfan Supervisor Elected 22 Jan. 2016 Qualitative and quantitative
Employee
Li Ning Appointment 22 Jan. 2016 Qualitative and quantitative
supervisor
Ding Lihong President Engagement 22 Jan. 2016 Qualitative and quantitative
Vice President
Chen Jincai Engagement 22 Jan. 2016 Qualitative and quantitative
and CFO
Vice President
Xu Wei and Board Engagement 22 Jan. 2016 Qualitative and quantitative
Secretary
Left as service
Chen Xuewen Director 22 Jan. 2016 Service term expired
term expired
Independent Left as service
Cai Shaohe 22 Jan. 2016 Service term expired
Director term expired
30
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Left as service
Chen Hongcheng President 22 Jan. 2016 Service term expired
term expired
Left as service
Chen Hongcheng Board Chairman 22 Jan. 2016 Service term expired
term expired
Vice Board Left as service
Ding Lihong 22 Jan. 2016 Service term expired
Chairman term expired
31
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section IX Financial Report
I Auditor’s report
Has this semi-annual report been audited?
□ Yes √ No
This semi-annual financial report has not been audited.
II Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by Guangdong Rieys Group Company Ltd.
30 June 2016
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 303,874,987.30 301,471,305.21
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value of which changes are recorded in 4,400.00
current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 3,843,748.39 4,656,499.20
Accounts paid in advance 295,564.41 855,041.60
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 1,404,400.60 7,618,577.72
32
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Financial assets purchased under
agreements to resell
Inventories 60,435,676.32 53,232,535.68
Assets held for sale
Non-current assets due within 1 year
Other current assets
Total current assets 369,854,377.02 367,838,359.41
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment
Investing real estate
Fixed assets 74,392,180.93 75,118,031.89
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 25,364,018.49 25,700,612.61
R&D expense
Goodwill 2,395,820.87 2,395,820.87
Long-term deferred expenses
Deferred income tax assets 3,463,820.21 3,463,820.21
Other non-current assets
Total of non-current assets 105,615,840.50 106,678,285.58
Total assets 475,470,217.52 474,516,644.99
Current liabilities:
Short-term borrowings
Borrowings from the Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
33
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Financial liabilities measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial liabilities
Notes payable
Accounts payable 1,431,229.29 1,594,036.50
Accounts received in advance 15,393,117.11 14,718,891.99
Financial assets sold and repurchased
Handling charges and commissions
payable
Payroll payable 447,395.43 449,772.90
Tax payable 13,027,964.51 12,796,779.45
Interest payable
Dividend payable
Other accounts payable 49,015,704.53 47,162,773.39
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 79,315,410.87 76,722,254.23
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
34
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 79,315,410.87 76,722,254.23
Owners’ equity:
Share capital 318,600,000.00 318,600,000.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 52,129,496.58 52,129,496.58
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 86,036,260.20 86,036,260.20
Provisions for general risks
Retained profits -96,637,178.68 -92,329,076.97
Total equity attributable to owners of
360,128,578.10 364,436,679.81
the Company
Minority interests 36,026,228.55 33,357,710.95
Total owners’ equity 396,154,806.65 397,794,390.76
Total liabilities and owners’ equity 475,470,217.52 474,516,644.99
Legal representative: Ding Lihong Chief of the accounting work: Chen Jincai Chief of the accounting organ: Zheng Guangde
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 3,379,929.17 250,310,105.45
Financial assets measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 0.00 0.00
35
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Accounts paid in advance 63,422.00 620,547.00
Interest receivable
Dividend receivable
Other accounts receivable 111,715,460.68 67,107,566.05
Inventories
Assets held for sale
Non-current assets due within 1 year
Other current assets
Total current assets 115,158,811.85 318,038,218.50
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 126,712,508.68 126,712,508.68
Investing real estate
Fixed assets 73,233,100.04 73,702,221.24
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 25,364,018.49 25,700,612.61
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 2,635,189.74 2,635,189.74
Other non-current assets
Total of non-current assets 227,944,816.95 228,750,532.27
Total assets 343,103,628.80 546,788,750.77
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial liabilities
36
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Notes payable
Accounts payable 19,442.64 19,442.64
Accounts received in advance 553,533.00 158,333.00
Payroll payable 201,085.64 185,146.56
Tax payable 15,782,361.77 15,782,337.43
Interest payable
Dividend payable
Other accounts payable 48,155,373.82 246,824,498.89
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 64,711,796.87 262,969,758.52
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 64,711,796.87 262,969,758.52
Owners’ equity:
Share capital 318,600,000.00 318,600,000.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 52,129,496.58 52,129,496.58
Less: Treasury stock
37
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Other comprehensive income
Specific reserves
Surplus reserves 86,036,260.20 86,036,260.20
Retained profits -178,373,924.85 -172,946,764.53
Total owners’ equity 278,391,831.93 283,818,992.25
Total liabilities and owners’ equity 343,103,628.80 546,788,750.77
3. Consolidated income statement
Unit: RMB
Item Reporting Period Same period of last year
I. Operating revenues 200,186,975.70 84,853,785.15
Including: Sales income 200,186,975.70 84,853,785.15
Interest income
Premium income
Handling charge and commission
income
II. Operating costs 199,776,483.69 81,450,675.97
Including: Cost of sales 190,594,842.57 73,218,005.25
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 122,989.29 3,001,673.60
Selling and distribution expenses 1,189,892.46 171,040.18
Administrative expenses 6,961,491.74 5,025,498.03
Financial expenses 739,933.86 692,150.31
Asset impairment loss 167,333.77 -657,691.40
Add: Gain/(loss) from change in fair
-148.00
value (“-” means loss)
Gain/(loss) from investment (“-” -1,522.94 14,284,601.42
38
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 408,969.07 17,687,562.60
Add: non-operating income 0.44 200,000.28
Including: Gains on disposal of
non-current assets
Less: non-operating expense 200,000.00 107,893.41
Including: Losses on disposal of
non-current assets
IV. Total profit (“-” means loss) 208,969.51 17,779,669.47
Less: Income tax expense 1,848,553.62 1,981,720.91
V. Net profit (“-” means loss) -1,639,584.11 15,797,948.56
Net profit attributable to owners of
-4,308,101.71 15,384,955.64
the Company
Minority shareholders’ income 2,668,517.60 412,992.92
VI. After-tax net amount of other
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to
owners of the Company
(I) Other comprehensive incomes
that will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees that
cannot be reclassified into gains and
losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and
losses
1. Enjoyable shares in other
comprehensive incomes in investees that
will be reclassified into gains and losses
39
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
under the equity method
2. Gains and losses on fair
value changes of available-for-sale
financial assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to
minority shareholders
VII. Total comprehensive incomes -1,639,584.11 15,797,948.56
Attributable to owners of the
-4,308,101.71 15,384,955.64
Company
Attributable to minority
2,668,517.60 412,992.92
shareholders
VIII. Earnings per share
(I) Basic earnings per share -0.01 0.05
(II) Diluted earnings per share -0.01 0.05
Where business mergers under the same control occurred in this Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00.
Legal representative: Ding Lihong Chief of the accounting work: Chen Jincai Chief of the accounting organ: Zheng Guangde
4. Income statement of the Company
Unit: RMB
Item Reporting Period Same period of last year
I. Total sales 0.00 0.00
Less: cost of sales 0.00 0.00
Business taxes and surcharges
Distribution expenses
Administrative expenses 4,584,885.65 2,979,715.52
40
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Financial costs 642,274.67 679,570.20
Impairment loss
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
97,229,923.57
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) -5,227,160.32 93,570,637.85
Add: non-operating income
Including: Gains on disposal of
non-current assets
Less: non-operating expense 200,000.00 35,611.68
Including: Losses on disposal of
non-current assets
III. Total profit (“-” means loss) -5,427,160.32 93,535,026.17
Less: Income tax expense
IV. Net profit (“-” means loss) -5,427,160.32 93,535,026.17
V. After-tax net amount of other
comprehensive incomes
(I) Other comprehensive incomes that
will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and
losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial
41
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
statement translation difference
6. Other
VI. Total comprehensive incomes -5,427,160.32 93,535,026.17
VII. Earnings per share
(I) Basic earnings per share -0.02 0.29
(II) Diluted earnings per share -0.02 0.29
5. Consolidated cash flow statement
Unit: RMB
Item Reporting Period Same period of last year
I. Cash flows from operating activities:
Cash received from sale of
235,472,158.88 72,108,208.88
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of financial
assets measured at fair value of which
changes are recorded into current gains
and losses
42
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received
Other cash received relating to
612,905,230.54 267,628,740.64
operating activities
Subtotal of cash inflows from operating
848,377,389.42 339,736,949.52
activities
Cash paid for goods and services 231,558,558.05 70,222,633.65
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 2,327,459.34 7,108,580.70
Various taxes paid 2,120,127.84 3,646,359.29
Other cash payment relating to
608,577,429.24 233,080,656.54
operating activities
Subtotal of cash outflows from
844,583,574.47 314,058,230.18
operating activities
Net cash flows from operating activities 3,793,814.95 25,678,719.34
II. Cash flows from investing activities:
Cash received from withdrawal of
2,867.06 125,919,434.13
investments
Cash received from return on
10.00 38,176,407.74
investments
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
43
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
2,877.06 164,095,841.87
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 1,393,075.92
assets
Cash paid for investment 116,508,010.16
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
1,393,075.92 116,508,010.16
investing activities
Net cash flows from investing activities -1,390,198.86 47,587,831.71
III. Cash Flows from Financing
Activities:
Cash received from capital
15,918,333.46
contributions
Including: Cash received from
minority shareholder investments by 20,000,000.00
subsidiaries
Cash received from borrowings
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
15,918,333.46
activities
Repayment of borrowings
Cash paid for interest expenses and
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
44
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Sub-total of cash outflows from
financing activities
Net cash flows from financing activities 0.00 15,918,333.46
IV. Effect of foreign exchange rate
66.00 -4.92
changes on cash and cash equivalents
V. Net increase in cash and cash
2,403,682.09 89,184,879.59
equivalents
Add: Opening balance of cash and
301,471,305.21 16,669,591.58
cash equivalents
VI. Closing balance of cash and cash
303,874,987.30 105,854,471.17
equivalents
6. Cash flow statement of the Company
Unit: RMB
Item Reporting Period Same period of last year
I. Cash flows from operating activities:
Cash received from sale of
395,200.00
commodities and rendering of service
Tax refunds received
Other cash received relating to
8,443,529.07 241,547,677.48
operating activities
Subtotal of cash inflows from operating
8,838,729.07 241,547,677.48
activities
Cash paid for goods and services
Cash paid to and for employees 638,288.55 538,492.65
Various taxes paid 9,663.86 873,863.69
Other cash payment relating to
253,940,952.94 224,870,973.10
operating activities
Subtotal of cash outflows from
254,588,905.35 226,283,329.44
operating activities
Net cash flows from operating activities -245,750,176.28 15,264,348.04
II. Cash flows from investing activities:
Cash received from withdrawal of
105,566,978.42
investments
Cash received from return on
38,143,343.42
investments
Net cash received from disposal of
45
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
143,710,321.84
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 1,180,000.00
assets
Cash paid for investment 94,604,198.27
Net cash paid to acquire subsidiaries
30,000,000.00
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
1,180,000.00 124,604,198.27
investing activities
Net cash flows from investing activities -1,180,000.00 19,106,123.57
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings
Cash paid for interest expenses and
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing activities
46
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-246,930,176.28 34,370,471.61
equivalents
Add: Opening balance of cash and
250,310,105.45 16,198,906.48
cash equivalents
VI. Closing balance of cash and cash
3,379,929.17 50,569,378.09
equivalents
7. Consolidated statement of changes in owners’ equity
Reporting Period
Unit: RMB
Reporting Period
Equity attributable to owners of the Company
Other equity
Other Retaine Minorit Total
Item instruments Less: General
Share Capital compre Special Surplus d y owners’
Prefer Perpet Treasur risk
capital reserve hensive reserve reserve earning interests equity
ence ual Other y shares reserve
income s
shares bonds
1. Balance at the 318,60
52,129, 86,036, -92,329, 33,357, 397,794
end of the prior 0,000.
496.58 260.20 076.97 710.95 ,390.76
year 00
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
2. Balance at the 318,60
52,129, 86,036, -92,329, 33,357, 397,794
beginning of the 0,000.
496.58 260.20 076.97 710.95 ,390.76
year 00
3. Increase/
decrease in the -4,308,1 2,668,5 -1,639,5
period (“-” means 01.71 17.60 84.11
decrease)
3.1 Total -4,308,1 2,668,5 -1,639,5
47
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
comprehensive 01.71 17.60 84.11
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit
0.00 0.00 0.00
distribution
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
Appropriation to
owners (or
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of 0.00 0.00
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
48
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve 0.00 0.00
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
318,60
52,129, 86,036, -96,637, 36,026, 396,154
4. Closing balance 0,000.
496.58 260.20 178.68 228.55 ,806.65
00
Same period of last year
Unit: RMB
Same period of last year
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments Less: General Retaine y
Share Capital compre Specific Surplus owners’
Prefer Perpet Treasur risk d interest
capital reserve hensive reserve reserve equity
ence ual Other y shares reserve earnings s
income
shares bonds
1. Balance at the 318,60
52,129, 86,036, -84,077, 4,263,3 376,951
end of the prior 0,000.
496.58 260.20 977.39 00.71 ,080.10
year 00
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
2. Balance at the 318,60 52,129, 86,036, -84,077, 4,263,3 376,951
beginning of the 0,000. 496.58 260.20 977.39 00.71 ,080.10
49
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
year 00
3. Increase/
decrease in the -8,251,0 29,094, 20,843,
period (“-” means 99.58 410.24 310.66
decrease)
3.1 Total
-8,251,0 2,572,7 -5,678,3
comprehensive
99.58 47.94 51.64
income
3.2 Capital
26,521, 26,521,
increased and
662.30 662.30
reduced by owners
3.2.1
Ordinary shares 26,521, 26,521,
increased by 662.30 662.30
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit
0.00 0.00
distribution
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
Appropriation to
owners (or
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of 0.00 0.00
owners’ equity
3.4.1 New
50
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve 0.00 0.00
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
318,60
52,129, 86,036, -92,329, 33,357, 397,794
4. Closing balance 0,000.
496.58 260.20 076.97 710.95 ,390.76
00
8. Statement of changes in owners’ equity of the Company
Reporting Period
Unit: RMB
Reporting Period
Other equity instruments Other
Less: Retaine Total
Item Share Capital comprehe Special Surplus
Prefere
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the -172,94
318,600, 52,129,49 86,036,26 283,818,9
end of the prior 6,764.5
000.00 6.58 0.20 92.25
year 3
Add: Changes
in accounting
policies
Correction of
errors in prior
51
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
periods
Other
2. Balance at the -172,94
318,600, 52,129,49 86,036,26 283,818,9
beginning of the 6,764.5
000.00 6.58 0.20 92.25
year 3
3. Increase/
decrease in the -5,427,1 -5,427,16
period (“-” means 60.32 0.32
decrease)
3.1 Total
-5,427,1 -5,427,16
comprehensive
60.32 0.32
income
3.2 Capital
increased and 0.00
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit
0.00
distribution
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
owners (or
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of 0.00
owners’ equity
52
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve 0.00
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
-178,37
318,600, 52,129,49 86,036,26 278,391,8
4. Closing balance 3,924.8
000.00 6.58 0.20 31.93
5
Same period of last year
Unit: RMB
Same period of last year
Other equity instruments Other
Less: Retaine Total
Item Share Prefere Capital comprehe Special Surplus
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the -243,97
318,600, 52,129,49 86,036,26 212,785,9
end of the prior 9,836.2
000.00 6.58 0.20 20.51
year 7
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
53
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
2. Balance at the -243,97
318,600, 52,129,49 86,036,26 212,785,9
beginning of the 9,836.2
000.00 6.58 0.20 20.51
year 7
3. Increase/
decrease in the 71,033, 71,033,07
period (“-” means 071.74 1.74
decrease)
3.1 Total
71,033, 71,033,07
comprehensive
071.74 1.74
income
3.2 Capital
increased and 0.00 0.00
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit
0.00
distribution
3.3.1
Appropriation to 0.00
surplus reserve
3.3.2
Appropriation to
0.00
owners (or
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of 0.00
owners’ equity
3.4.1 New
increase of capital
(or share capital)
54
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
-172,94
318,600, 52,129,49 86,036,26 283,818,9
4. Closing balance 6,764.5
000.00 6.58 0.20 92.25
3
III. Company profile
1. The registration place, the organization method and the headquarters address of the Company
Guangdong Rieys (Group) Co., Ltd. (hereinafter referred to as “the Company”) was a limited
liability company registered in Guangdong Province and had been approved by the Y-H-B [1997]
No. 580 document of People’s Government of Guangdong Province on 17 November 1997, which
established by five enterprises including Puning Haicheng Industrial Co., Ltd. (this company
changed its name to Shenzhen Shenghengchang Industrial Co., Ltd. after relocating in Shenzhen; in
2007 this company was renamed as Guangzhou Shenghengchang Investment Co., Ltd.; in 2008 this
company was renamed as Guangzhou Shenghengchang Trade and Development Co., Ltd.; on 28
January, 2010 this company was renamed as Puning Shenghengchang Trade Development Co., Ltd.;
on 26 July 2013, this company was renamed as Shenzhen Shenghengchang Huifu Industrial Co.,
Ltd. as relocation), an original sino-foreign cooperated enterprise of Hongxing Weaving Garment
Co., Ltd. Under approval of Guangdong Province Administration for Industry and Commerce, the
Company registered with the registration number of the license of the business corporation of:
445200000034656. The Share B, which was the HK common stock as well as the domestically
listed foreign share issued by the Company, had listed on the SZSE. The registration place of the
Company: Meixin Industrial Park, Junbu Town, Puning, Guangdong Province, of which the parent
company was the Shenzhen Shenghengchang Huifu Industrial Co., Ltd. and the ultimate actual
controller of the Group was Chen Hongcheng. The Company had renamed as Guangdong Jadiete
Holdings Group Co., Ltd. on 18 May 2016.
55
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
The Company used to be the Puning Hongxing Weaving Garment Co., Ltd., which had reorganized
as a limited liability company based on the former company on 17 November 1997.
The original registration capital of the Company was of RMB80,000,000.00 with the total amount
of the share capital of 80,000,000 shares. And the face value of the shares of the Company was of
RMB1 per share. In March 1999, with the approval of the Shareholders’ General Meeting, the
Company declared a Bonus Issue of 3.5 shares per 10 shares based on the total number of shares
accrued in the register as at December 31, 1998 (80 million shares), making the registered capital
increased to 108,000,000 shares. The Company issued 60,000,000 shares of foreign invested stock
domestically listed (“Stock B”) for foreign investors on October 17, 2000, and issued 9,000,000
shares of Stock B for exercise of over-allotment options during the period from October 27 to
November 22, 2000 in accordance with approval of ZJFXZ (2000) No. 133 issued by China
Securities Regulatory Commission on September 29, 2000. The registered capital of the Company
increased to RMB177,000,000 after issuance of Stock B, which was divided into 177,000,000
shares of RMB1.00 each. The registered capital of the Company increased to 318,600,000 after
years of bonus distribution and transfer increase in paid-in capital, which was divided into
318,600,000 shares of RMB1.00 each.
As at 30 June 2016, the Company’s total share capital was 318,600,000 shares, including
164,025,000 non-tradable legal shares (representing 51.48% of total shares and 154,575,000
domestic listed foreign shares (stock B) (representing 48.52% of total shares).
2. Operating scope
The operating scope of the Company: executes the self-management and agent of the import and
export business of other goods and techniques except for the national organization unified joint
venture export commodities and the national approved corporation operation export commodities;
executes the processing imported materials operation, “three-processing and one compensation”,
counter trade and entrepot trade (operates according to the [98] WZMZSHZ No. 1225 document);
the production, processing and sales of the clothing, needle and textiles. Sales of the industrial
capital goods (excluding the gold, car, dangerous chemicals), department stores, furniture, arts and
crafts (excluding the gold jewelry) and the domestic commerce (except for those forbidden by the
laws, administrative regulations and the State Council; and as for the projects limited by the laws,
administrative regulations and the State Council should acquire the permission before
operating).Crops planting. Storage. Various investments. Real Estate development (three-level with
the period of validity to 31 December 2015.) Commercial residential buildings developed owning to
renting out the Company. Hotel management. Engages in the technique development, design and
sales of the gold, silver, platinum, diamond, jade, jewelry, hardstone article and so on.
3. Information of the special enterprises with limited business allotted time
Naught
4. Business nature and major operating activities of the Company
The Company is the gold jewelry vendor; mainly engages in the technique development, design and
sales of the gold jewelry.
56
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
5. Approval of the presentation of the financial statements
The financial statements and the notes to the financial statements were approved by the 3rd Session
of the 7th Board of Directors of the Company on 29 August 2016.
There were 4 main bodies included in the consolidated financial statement scope at the period-end
of the Reporting Period, which specifically including:
Name of the subsidiaries Type of the subsidiaries Shareholding proportion Voting proportion (%)
(%)
Shenzhen Rieys Industrial Co., Limited liability company 90.00 90.00
Ltd.
Puning Tianhe Weaving Limited liability company 100.00 100.00
Garment Co., Ltd.
Tianrui (Hong Kong) Trading Limited liability company 100.00 100.00
Co., Ltd.
Shenzhen Chinese Gold Nobility Limited liability company 51.00 51.00
Jewerly Co., Ltd.
1. The subsidiaries newly included in the consolidated scope, the main bodies with special purpose
and the operating entities formed the control right through the methods of the fiduciary operation or
accepting leases
No such situation of the Company during the Reporting Period.
2. The subsidiaries no more newly included in the consolidated scope, the main bodies with special
purpose and the operating entities lost the control right through the methods of the entrusted
operation or leasing
No such situation of the Company during the Reporting Period.
IV. Basis for the preparation of the financial statement
1. Basis for the preparation
The Company and its subsidiaries are prepared based on assumption of the Company’s continuing
operations, according to transactions and events actually occurred, and based on “Basic Accounting
Standard for Business Enterprises” and specific accounting standards as well as the application
guide, explanation and other relevant regulations (generally referred to as “ASBE”) issued by
Ministry of Finance. In addition, the Company’s financial statements also comply with the relevant
financial information in “Compilation Rules for Information Disclosures by Companies that Offer
Securities to the Public No.15 - General Provisions for Financial Reports” (hereinafter referred to as
“the No. 15”) issued by CSRC (revised in 2014).
The accounting measurement of the Company based on the accrual basis. Except for certain
financial instruments, the financial statements were all based on the historical cost for measurement.
57
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
If there was impairment of the assets, should withdraw the impairment provision according to the
relevant regulations.
2. Continuing operations
The financial statement presented based on the continuing operations. There was no any event or
situation caused major concerns on the continuing operation ability of the Company within 12
months from the period-end.
V. Significant accounting policies and estimates
Specific accounting policies and accounting estimates indicators:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Company’s, and the relevant information of the Company’s merger and financial positions as at 30
June 2016, as well as the merger, business results and the merger and cash flows for the first half
year of 2016.
2. Fiscal period
The Company’s fiscal year starts on 1 Jan. and ends on 31 Dec. of every year according to the
Gregorian calendar.
3. Operating cycle
Normal operating cycle refers to the period from the Group purchases the assets for processing to
realize the cash or cash equivalents. The Group regards 12 months as an operating cycle and regards
which as the partition criterion of the mobility of the assets and liabilities.
4. Recording currency
Recording currency is RMB.
5. Accounting treatment for business combinations under the common control and not under the common
control
(1) Judgment standard of the package deal
If the terms, conditions and the economic influences of each transaction in the process of the
enterprise merger realized by multiple steps met with one or various situation of the followings,
should execute the accounting treatment by considering the multiple transactions as the package
58
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
deal:
① these transactions are considered simultaneously, or in the case of mutual influence made;
② these transactions as a whole in order to achieve a complete business results;
③ the occurrence of a transaction depends on occurs at least one other transaction ;
④ a transaction look alone is not economical, but when considered together with other transaction
is economical.
(2) Business combination under the same control
For the business combination under the same control, the assets and liabilities that the combining
party obtains in a business combination, except for the adjustment executed owning to the
differences between the accounting policies, shall be measured on the basis of their originally
carrying amount in the combined party on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), the additional paid-in capital
(share/capital premium) shall be adjusted. If the additional paid-in capital (share/capital premium) is
not sufficient to be offset, the retained earnings shall be adjusted.
The direct relevant expenses occurred for executing the enterprise merger should be recorded in the
current gains and losses when occurred.
(3) Business combination not under the same control
Business combination not under the common control refers to that parties involved in the merger
are not subject to the ultimate control of the same party or same multi-parties before & after the
merger.
For a business combination not under the same control, the combination costs shall include the fair
values, on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity
securities issued by the acquirer in exchange for the control on the acquiree. On the purchase date,
the merger cost occurred in the Company and the assets, liabilities and the contingent liabilities of
the acquirees should be recognized according to the fair value.
As for the expenses for audit, legal services and assessment, and other administrative expenses,
should be recorded into the profits and losses in the current period. The trading expenses for the
equity securities or debt securities issued by the acquirer as the combination consideration shall be
recorded into the amount of initial measurement of the equity securities or debt securities.
The Company shall recognize the positive balance between the combination costs and the fair value
of the identifiable net assets it obtains from the acquiree as business reputation and shall execute the
follow-up measurement according to the cost which deducted the accumulative impairment
provision; the Company shall record which in the current gains and losses after the reexamination to
treat the balance between the combination costs and the fair value of the identifiable net assets it
obtains from the acquiree.
59
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
As for the deductible temporary differences the acquirer obtains from the acquiree which are not
recognized into deferred income tax liabilities due to their not meeting the recognition standards, if
new or further information shows that the relevant situation has existed on the acquiring date and
the economic benefits brought by the deductible temporary differences the acquirer obtains from the
acquiree on the acquiring date can be realized, they shall be recognized into deferred income tax
assets and the relevant goodwill shall be reduced. Where the goodwill is not sufficient to be offset,
the difference shall be recognized into the profits and losses in the current period. In other
circumstances than the above, where the deductible temporary differences are recognized into
deferred income tax assets on the acquiring date, they shall be recorded into the profits and losses in
the current period.
In a business combination not under same control realized by two or more transactions of exchange,
according to about the 5th Notice about the Treasury Issuing the Accounting Standards for
Enterprises (Finance accounting) [2012] No. 19 Criterion about the “package deal”, whether the
deals are “package deal” or not, belong to the “package deal”, see the previous paragraphs
described in this section and note IV, 12 “long term equity investment transaction” and conduct
accounting treatment, those not belong to the “package deal” distinguish between the individual
financial statements and the consolidated financial statements and conduct relevant accounting
treatment.
In the individual financial statements, the sum of the book value and new investment cost of the
Company holds in the acquiree before the acquiring date shall be considered as initial cost of the
investment. Other related comprehensive gains in relation to the equity interests that the Company
holds in the acquiree before the acquiring date, except for the corresponding share in the changes in
the net liabilities or assets with a defined benefit plan measured at the equity method arising from
the acquiree’s re-measurement, the others shall be transferred into current investment gains.
In the Company’s consolidated financial statements, the merger cost is the sum of the consideration
pays on the purchase date and the fair value on the purchase date of the equity of the acquirees hold
before the purchase date. As for the equity interests that the Company holds in the acquiree before
the acquiring date, they shall be re-measured according to their fair values at the acquiring date; the
positive difference between their fair values and carrying amounts shall be recorded into the
investment gains for the period including the acquiring date. Other related comprehensive gains in
relation to the equity interests that the Company holds in the acquiree before the acquiring date,
except for the corresponding share in the changes in the net liabilities or assets with a defined
benefit plan measured at the equity method arising from the acquiree’s re-measurement, the others
shall be transferred into current investment gains.
6. Preparation of the consolidated financial statements
The consolidation scope for financial statements is determined on the basis of control and all the
subsidiaries (including the individual main body controlled by the Company) are all included in the
consolidated financial statement.
The consolidated financial statement bases on the financial statement of the Company and the
subsidiaries and prepares according to the other relevant materials by the Company. When
60
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
preparing the consolidated financial statement, the accounting policies and the accounting period of
the Company and the subsidiaries were required to maintain unanimous while the intercompany
significant contracts and the come-and-go balance should be offset.
For the subsidiaries increased owning to the enterprise merger under the same control during the
Reporting Period, the Company includes their income, expenses and profits from the period-begin
of the merger to the end of the Reporting Period in the consolidated statement of income and
includes the cash flow in the consolidated statement of cash flow, as well as adjust the opening
balance and the comparison amount of the consolidated financial statement; as for the subsidiaries
increased owning to the enterprise merger not under the same control during the Reporting Period,
the Company includes their income, expenses and profits from the purchase date to the end of the
Reporting Period in the consolidated statement of income and includes the cash flow in the
consolidated statement of cash flow, while not to as adjust the opening balance and the comparison
amount of the consolidated financial statement; during the Reporting Period, as for the disposed
subsidiaries, the Company includes their income, expenses and profits from the period-begin of the
merger to the disposal date in the consolidated statement of income and includes the cash flow in
the consolidated statement of cash flow, and not to adjust the opening balance of the consolidated
balance sheet.
The portion of a subsidiary’s shareholders’ equity and the portion of a subsidiary’s net profits and
losses for the period not held by the Company are recognized as minority interests and minority
shareholder profits and losses respectively and presented separately under shareholders’ equity and
net profits in the consolidation financial statements. The portion of a subsidiary’s net profits and
losses for the period that belong to minority interests is presented as the item of “minority
shareholder profits and losses” under the bigger item of net profits in the consolidated financial
statements. Where the loss of a subsidiary shared by minority shareholders exceeds the portion
enjoyed by minority shareholders in the subsidiary’s opening owners’ equity, minority interests are
offset.
As for the transactions purchasing minority equities of the subsidiaries or the transitions not losing
the control right of the subsidiaries owning to disposing the equity investment on them, should be
measured as the equity transactions and adjust the book value that attributes to the equities of the
shareholders of the Company and the equities of the minority shareholders for reflecting the
changes in the relevant equities of the subsidiaries. The Company adjusts the capital surplus of the
difference between the adjusted amount of the equities of the minority shareholders and the fair
value of the paid/received consideration, if the capital surplus is insufficient to write down, the
retained income should be adjusted.
Where the Company losses control on its original subsidiaries due to disposal of some equity
investments or other reasons, the residual equity interests are re-measured according to the fair
value on the date when such control ceases. The summation of the consideration obtained from the
disposal of equity interests and the fair value of the residual equity interests, minus the portion in
the original subsidiary’s net assets measured on a continuous basis from the acquisition date that is
enjoyable by the Company according to the original shareholding percentage in the subsidiary, is
recorded in investment gains for the period when the Company’s control on the subsidiary ceases.
Other comprehensive incomes in relation to the equity investment in the original subsidiary are
61
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
treated on the same accounting basis as the acquiree directly disposes the relevant assets or
liabilities (that is, except for the changes in the net liabilities or assets with a defined benefit plan
resulted from re-measurement of the original subsidiary, the rest shall all be transferred into current
investment gains) when such control ceases. And subsequent measurement is conducted on the
residual equity interests according to the No. 2 Accounting Standard for Business
Enterprises-Long-term Equity Investments or the No. 22 Accounting Standard for Business
Enterprises-Recognition and Measurement of Financial Instruments.
Where the Company losses control on its original subsidiaries due to step by step disposal of equity
investments through multiple transactions, it need to distinguish the Company losses control on its
subsidiaries due to disposal of equity investments whether belongs to a package deal. If each
transaction of disposing the equity investment of the subsidiaries until losing the control right
belongs to the package deal, should be regarded as a transaction of disposing the subsidiaries and
losing the control right for accounting treatment. Those not belong to a package deal, each of
them a deal depends on circumstances respectively conduct accounting treatment in accordance
with the applicable principles of “part disposal of subsidiaries of a long-term equity investment
under the condition of not losing control on its subsidiaries” (see details to the first two
paragraphs)and “Where the Group losses control on its original subsidiaries due to disposal of some
equity investments or other reasons” (see the details to the first paragraph).However, before losing
control, every disposal cost and corresponding net assets balance of subsidiary of disposal
investment are confirmed as other comprehensive income in consolidated financial statements,
which together transferred into the current profits and losses in the lose of control , when the
Company losing control on its subsidiary.
7. Confirmation standard for cash and cash equivalent
In preparing the cash flow statement, the cash equivalents of the Company include the investments
with short period (it usually expires within three months from the purchase date), characteristics of
high liquidity, easy conversion to certain amount of cash and little risk of value change.
8. Transactions of foreign currencies and conversion of financial statements in foreign currencies
(1) Adjustments are made to foreign currency accounts in accordance with the exchange rate
prevailing on the balance sheet date
Value of non currency item accrued at fair value by foreign currency is adjusted in accordance with
the exchange rate prevailing on fair value confirm date. Conversion differences arising from those
specific borrowings are to be capitalized as part of the cost of the construction in progress in the
period before the fixed assets being acquired and constructed has not yet reached working condition
for its intended use. Conversion differences arising from other accounts are charged to financial
expenses.
(2) In balance sheet, assets and liabilities items are converted into RMB at the exchange rate
prevailing on the consolidated balance sheet date. Owner’s equity items (excluding undistributed
profit item) are converted into RMB at the exchange rate when the transaction occurs. In income
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
statement, revenue and expenses items are accrued by the proper method and the approximate rate
when the transaction occurs. Translation difference occurred for above reason is disclosed in the
consolidated balance sheet as a separate item.
9. Financial instruments
The term “financial instruments” refers to the contracts under which the financial assets of an
enterprise are formed and the financial liability or right instruments of any other entity are formed.
Financial instruments include the financial assets, financial liabilities and equity instruments.
(1) Recognition and derecognition of the financial instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or
financial liability.
Where a financial asset satisfies any of the following requirements, the recognition of it shall be
terminated:
① Where the contractual rights for collecting the cash flow of the said financial asset are
terminated;
② Where the said financial asset has been transferred and meets the conditions for recognizing the
termination of financial assets as follows.
Only when the prevailing obligations of a financial liability are relieved in all or in part may the
recognition of the financial liability be terminated in all or partly. Where the Company (debtor)
enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of
any new financial liability, and if the contractual stipulations regarding the new financial liability is
substantially different from that regarding the existing financial liability, it shall terminate the
recognition of the existing financial liability, and shall at the same time recognize the new financial
liability.
Buying and selling the financial assets by conventional methods and executing the accounting
recognition and derecognition according to the transaction date.
(2) Category and measurement of the financial assets
The Company classifies the financial assets into the following four kinds when initially recognizing
according to the contract terms of the issued financial instruments and the economic nature reflected
by which but not by the law methods as well as combines with the aims of acquiring and holding
the financial assets and undertaking the financial liabilities: financial assets measured by fair value
with the changes be recorded in the current gains and losses, held-to-maturity investment, loans and
accounts receivable as well as the available-for-sale financial assets. The financial assets should be
measured by fair value when initially recognizing. As for the financial assets measured by fair value
with the changes be recorded in the current gains and losses, the relevant transactions expenses
should be directly recorded in the current gains and losses while the relevant transactions expenses
of the financial assets of other categories should be recorded in the initially recognized amount.
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Financial assets measured by fair value with the changes be included in the current gains and losses
As for the financial assets measured by fair value with the changes are included in the current gains
and losses which include the tradable financial assets and the financial assets be appointed as the
one be measured by fair value with the changes are included in the current gains and losses when
initially recognized. For this kind of the financial assets, should be executed the follow-up
measurement by adopting the fair value, and the profits or losses form from the changes of the fair
value as well as the dividends and the interest income related to the financial assets should be
recorded in the current gains and losses.
Held-to-maturity investment
The term“held-to-maturity investment”refers to a non-derivative financial asset with a fixed date of
maturity, a fixed or determinable amount of repo price and which the enterprise holds for a definite
purpose or the enterprise is able to hold until its maturity. The following non-derivative financial
assets shall not be classified as investments held to their maturity. As for the held-to-maturity
investment, shall make subsequent measurement on its financial liabilities on the basis of the
post-amortization costs by adopting the actual interest rate method, while the gains or losses of the
derecognition, impairment or amortization should be recorded in the current gains and losses.
Accounts receivable
Accounts receivable refers to the non-derivative financial assets without any quotation in the active
market but with fixed or recognizable recovery amount, which include the accounts receivable and
other accounts receivable etc. As for the accounts receivable, shall make subsequent measurement
on its financial liabilities on the basis of the post-amortization costs by adopting the actual interest
rate method, while the gains or losses of the derecognition, impairment or amortization should be
recorded in the current gains and losses.
Available-for-sale financial assets
Available-for-sale financial assets refers to the non-derivative financial assets be appointed as
available-for-sale and the financial assets except for the above category of the financial assets. The
available-for-sale financial assets should adopt the follow-up measurement and the premium should
adopt the actual interest rate for amortization and be recognized as the interest income. Except for
the impairment losses and the exchange differences of the foreign currency financial assets which
be regarded as the current gains and losses, the changes of the fair value of the available-for-sale
financial assets should be recognized as other comprehensive income, and when the financial assets
being derecognizing, the portion of the accumulative amount of changes in the fair value originally
recorded in the other comprehensive income which corresponds to the portion whose recognition
has been disposed, shall be transferred and recorded in the current gains and losses. And the
dividends or the interest income related to the available-for-sale financial assets should be recorded
in the current gains and losses.
(3) Category and measurement of financial liabilities
The financial liabilities of the Company are classified as the follows when initially recognized:
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
financial liabilities measured by fair value with the changes are recorded in the current gains and
losses and other financial liabilities. As for those had not be divided as the financial liabilities
measured by fair value with the changes be recorded in the current gains and losses, the relevant
transaction expenses should be recorded in the initial recognized amount.
Financial liabilities measured by fair value with the changes be recorded in the current gains and
losses
The financial liabilities measured by fair value with the changes be recorded in the current gains
and losses, which include the tradable financial liabilities and the financial liabilities be appointed
as measured by fair value with the changes be recorded in the current gains and losses when
initially recognized. For this kind of financial liabilities should be executed the follow-up
measurement according to the fair value, while the profits or losses form from the changes of the
fair value and the dividends and the interest expenses related to the financial liabilities should be
recorded in the current gains and losses.
Other financial liabilities
For the derivative financial liabilities, which are connected to the equity instrument for which there
is no quotation in the active market and whose fair value cannot be reliably measured, and which
must be settled by delivering the equity instrument, they shall be executed follow-up measurement
on the basis of their costs. As for the other financial liabilities, should adopt the effective interest
method and be executed the follow-up measurement according to the amortized cost with the profits
or losses form from derecognition or amortization be recorded in the current gains and losses.
(4) Fair value of the financial instruments
As for the financial assets or financial liabilities for which there is an active market, the current
offer or current price in the active market shall be used to determine the fair values thereof.
Where there is no active market for a financial instrument, the Company concerned shall adopt
value appraisal techniques to determine its fair value. The result obtained by adopting value
appraisal techniques shall be able to reflect the transaction prices that may be adopted in fair
dealings on the value appraisal day. The value appraisal techniques mainly include the prices
adopted by the parties, who are familiar with the condition, in the latest market transaction upon
their own free will, the current fair value obtained by referring to other financial instruments of the
same essential nature, the cash flow capitalization method and the option pricing model, etc.
To determine the fair value of a financial asset, the Company chooses those value appraisal
techniques which are generally acknowledged by market participants and have been proved as
reliable by past actual transaction prices of the market. To determine the fair value of a financial
asset by adopting value appraisal techniques, the Company shall adopt, if possible, all the market
parameters that are taken into account by market participants in pricing financial instruments and
the observable transaction price of the current market with the same financial instruments for testing
the validity of the valuation technique.
(5) Impairment of financial assets
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The Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the
financial assets and where there is any objective evidence proving that such financial asset has been
impaired, an impairment provision shall be made. The expression “objective evidence proving that
the financial asset has been impaired” refers to the actually incurred events which, after the
financial asset is initially recognized, have an impact on the predicted future cash flow of the said
financial asset that can be reliably measured by the Company.
Financial assets measured by amortized cost
If there are objective evidences indicate that the financial assets occur impairment, the carrying
amount of the said financial asset shall be written down to the current value of the predicted future
cash flow (excluding the loss of future credits not yet occurred), and the amount as written down
shall be recorded in the current gains and losses. The current value of the predicted future cash flow
shall be determined according to the capitalization of the original actual interest rate of the said
financial asset, taking into account the value of the relevant guarantee.
An impairment test shall be made on the financial assets with significant single amounts. If any
objective evidence shows that it has been impaired, the impairment-related losses shall be
recognized and shall be recorded into the profits and losses of the current period. With regard to the
financial assets with insignificant single amounts, an independent impairment test may be carried
out, or they may be included in a combination of financial assets with similar credit risk features so
as to carry out an impairment-related test. Where, upon independent test, the financial asset
(including those financial assets with significant single amounts and those with insignificant
amounts) has not been impaired, it shall be included in a combination of financial assets with
similar risk features so as to conduct another impairment test. The financial assets which have
suffered from an impairment loss in any single amount shall not be included in any combination of
financial assets with similar risk features for any impairment test.
Where any financial asset measured on the basis of post-amortization costs is recognized as having
suffered from any impairment loss, if there is any objective evidence proving that the value of the
said financial asset has been restored, and it is objectively related to the events that occur after such
loss is recognized, the impairment-related losses as originally recognized shall be reversed and be
recorded into the profits and losses of the current period. However, the reversed carrying amount
shall not be any more than the post-amortization costs of the said financial asset on the day of
reverse under the assumption that no provision is made for the impairment.
Available-for-sale financial assets
Where there are objective evidences indicate that the available-for-sale financial assets are impaired,
the accumulative losses arising from the decrease of the fair value of the owner’s equity which was
directly included shall be transferred out and recorded into the profits and losses of the current
period. The accumulative losses that are transferred out shall be the balance obtained from the
initially obtained costs of the sold financial asset after deducting the principals as taken back, the
current fair value and the impairment-related losses as was recorded into the profits and losses of
the current period.
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As for the sellable debt instruments whose impairment-related losses have been recognized, if,
within the accounting period thereafter, the fair value has risen and are objectively related to the
subsequent events that occur after the originally impairment-related losses were recognized, the
originally recognized impairment-related losses shall be reversed and be recorded into the profits
and losses of the current period. The impairment-related losses incurred to a sellable equity
instrument investment shall not be reversed through profits and losses.
Financial assets measured by cost
When the equity instrument investments for which there is no quotation in the active market and
whose fair value cannot be measured reliably, or the derivative financial assets which are connected
with the said equity instrument and must be settled by delivering the said equity instrument are
impaired, should recognize the book value of the financial assets and the differences between the
current value recognized from the discounting according to the current market earnings rate of the
similar financial assets to the future cash flow as the impairment losses and record which in the
current gains and losses. And the occurred impairment losses once being recognized should not be
reversed.
(7) Transformation of the financial assets
The term “"transfer of a financial asset” refers to transferring or delivering a financial asset to a
party other than the issuer of the financial asset (the transferee).
Where the Company has transferred nearly all of the risks and rewards related to the ownership of
the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop
recognizing the financial asset.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to the circumstances as follows,
respectively: if it gives up its control over the financial asset, it shall stop recognizing the financial
asset; if it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and
recognize the relevant liability accordingly.
10. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
Individual material receivables are the top five largest
Standard of significant single amounts receivables or sum of receivables which account for 10% of
ending balance of accounts receivable.
As for the accounts receivable with insignificant single amount at
Withdrawing method of provision for bad debts of significant
the period-end, could execute the impairment test individually; as
single amounts
for the accounts receivable with no impairment among the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
individual test (including the accounts receivable with significant
and insignificant single amount) and plus with the accounts
receivable groups possess with similar credit risks characteristics
should measure and recognize the impairment losses according
to the certain proportion of the closing balance of the accounts
receivable groups when executing the withdrawal of the bad debt
provision.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Name of portfolios Bad debt provision method
Age portfolios Aging analysis method
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Age
receivable receivable
Within 1 year (including 1 year) 2.00% 2.00%
1-2 years 10.00% 10.00%
2-3 years 50.00% 50.00%
Over 3 years 80.00% 80.00%
3 to 4 years 80.00% 80.00%
4 to 5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
individually
Reason of individually withdrawing bad debt provision There is objective evidence indicates the impairment.
Conduct impairment testing separately on accounts receivable
with relatively higher individual price at end of the period. If
there is objective evidence to indicate that impairment exists,
Withdrawal method for bad debt provision
recognize impairment loss and provide for bad and doubtful
debts in accordance with the difference between its future cash
flow and carrying amount.
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11. Inventory
(1) Inventory classification
The inventory of the Company classified as:
A. Real estate development products: developed products, development cost.
B. Non-real estate products: raw materials, products in production, stock merchandise, delivery
commodity, commission processing materials, etc.
(2) Method for inventory valuation
Inventories are valued at the lower of cost and net realizable value.
Real estate development product costs include land cost, construction costs and other costs.
Borrowing costs meet the capitalization conditions are also included in real estate development
product costs. Non-real estate development product costs include purchase cost, process cost and
other costs.
The raw materials acquired by the Company are measured according to the actual cost and the raw
materials, outside processing materials, goods in process and self-made semi-manufactured goods
adopt weighted average valuation when issued or received (winding wheel setting and jade
accessories adopt individual pricing).
(3) Confirmation of net realizable value of inventory and Recording method of provision for
inventory devaluation
At the end of the year, after overall check of the inventory, draw or adjust provision for inventory
devaluation according to the lower of the cost of inventory and net realizable values of inventory.
In normal operation process, net realizable values of commodities inventories for direct sales
including finished goods, commodities and materials for sales are determined by the estimated
selling prices minus the estimated selling expenses and relevant taxes and fees; In normal operation
process, net realizable values of materials that need further processing are determined by the
estimated selling prices of the finished goods minus estimated cost to completion, estimated selling
expenses and relevant taxes. For the inventory held to implement sales contract or work contract, its
net realizable value is calculated on the basis of contract price. For the balance of inventory beyond
the amount of the sales contract, its net realizable value is calculated on the basis of general selling
price.
Provision for inventory devaluation is provided for based on individual inventory item at end of the
period. For inventory that has large quantity and low unit price, the provision for inventory
devaluation is provided for based on categories of the inventory. For inventory related to the
products manufactured and sold in the same district, with same or similar use or purpose, and
difficult to account for separately from other items, the provision for inventory devaluation is
provided for on a consolidated basis.
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When the factors that influence the decreased bookkeeping of inventory value have disappeared,
switch back from the provision for inventory devaluation amount that previously appropriated and
the amount that switched back is charged to profit or loss of current period.
(4) System of stock inventories
Perpetual inventory system is applied.
(5) Amortization for low cost and short lived articles and package materials
When consuming the low cost and short lived articles, the Company adopts the one-time
amortization method for amortization.
The turnover package materials should be recorded in the cost expenses according to the one-time
amortization method.
12. Divided as assets held for sale
(1) The Company recognizes the non-current assets or the assets group that simultaneously meet
with the following conditions as the assets held for sale. The compose part must be immediately
sold only according to the usual terms of selling the compose part under the current conditions; the
enterprise had made resolution on the disposal of the compose part, if needed to receive the
approval from the shareholders according to the rules, should had acquired the approval from the
Annual General Meeting or the corresponding capability mechanism; the enterprise had signed the
irrepealably transfer agreement with the transferee; and the transfer should be completed within 1
year.
(2) As for the fixed assets held for sale, shall adjust its expected net salvage value that lead which
reflect the amount of the fair value minuses the disposal expenses but should not exceed the original
book value of the fixed assets when meet with the conditions held for sale and as for the difference
that the original book value higher than the expected net salvage after adjustment, should be
recorded in the current gains and losses as the losses of the assets impairment. As for the other
non-current assets held for sale, should be disposed by comparing the above principles, and the
non-current assets held for sale include the single assets and disposal group, while the disposal
group refers to a group of assets sold as a whole or disposed together by other methods.
(3) As for the liabilities be divided in the disposal group held for sale, the Company lists which as
the liabilities among the disposal group held for sale. The long-term equity investment of this part
refers to the long-term equity investment owns the control, jointly control or the significant
influences on the investees of the Company. As for the long-term equity investment not owning the
control, jointly control or the significant influences on the investees of the Company, should be
regarded as the available-for-sale financial assets or be measured as the financial assets for
measurement by fair value with the changes be recorded in the current gains and losses, of which
the details of the accounting policies in Notes IV. 9 “Financial Instruments”.
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13. Long-term Equity Investment
The long-term equity investments of this part refer to the long-term equity investments that the
Group has control, joint control or significant influence over the investees. The long-term equity
investment that the Group does not have control, joint control or significant influence over the
investees, should be recognized as available-for-sale financial assets or be measured by fair value
with the changes should be included in the financial assets accounting of the current gains and
losses.
(1) Recognition of investment costs
As for long-term equity investments acquired by enterprise merger, if the merger is under the same
control, the share of the book value of the owner’s equity of the merged enterprise, on the date of
merger, is regarded as the initial cost of the long-term equity investment. The difference between
the initial cost of the long-term equity investment and the payment in cash, non-cash assets
transferred as well as the book value of the debts borne by the merging party shall offset against the
capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted
(If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date
of merger, regard the share of the book value of the shareholder's equity of the merged enterprise on
the consolidated financial statement of the ultimate control party as the initial cost of the long-term
equity investment. The total face value of the stocks issued shall be regarded as the capital stock,
while the difference between the initial cost of the long-term equity investment and total face value
of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to
dilute, the retained earnings shall be adjusted. The equities of the combined party which
respectively acquired through multiple transaction under the same control that ultimately form into
the combination of the enterprises under the same control, should be disposed according whether
belongs to package deal; if belongs to package deal, each transaction would be executed accounting
treatment by the Company as a transaction of acquiring the control right. If not belongs to package
deal, it shall, on the date of merger, regard the enjoyed share of the book value of the shareholder's
equity of the merged enterprise on the consolidated financial statement of the ultimate control party
as the initial cost of the long-term equity investment, and as for the difference between the initial
investment cost of the long-term equity investment and sum of the book value of the long-term
equity investment before the combination and the book value of the consideration of the new
payment that further required on the combination date, should adjust the capital reserve; if the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equity
investment held before the combination date which adopted the equity method for accounting, or
the other comprehensive income confirmed for the available-for-sale financial assets, should not
have any accounting disposal for the moment).
For the long-term investment required from the business combination under different control, the
initial investment cost regarded as long-term equity investment on the purchasing date according to
the combination cost, the combination costs shall be the sum of the fair values of the assets paid, the
liabilities incurred or assumed and the equity securities issued by the Company (The equities of the
acquirees which respectively acquired through multiple transaction that ultimately form into the
combination of the enterprises under the different control, should be disposed according whether
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
belongs to package deal; if belongs to package deal, each transaction would be executed accounting
treatment by the Company as a transaction of acquiring the control right. If not belongs to package
deal, the sum of the book value of the original held equity investment of the acquirees and the
newly added investment cost should be regarded as the initial investment cost of the long-term
equity investment that changed to be accounted by cost method. If the original held equity is
calculated by cost method, the other relevant comprehensive income would not have any accounting
disposal for the moment. If the original held equity investment is the financial assets available for
sale, its difference between the fair value and the book value as well as the accumulative changes of
the fair value that include in the other comprehensive income, should transfer into the current gains
and losses).
The commission fees for audit, law services, assessment and consultancy services and other
relevant expenses occurred in the business combination by the combining party or the purchase
party, shall be recorded into current profits and losses upon their occurrence; the transaction
expense from the issuance of equity securities or bonds securities which are as consideration for
combination by the combining party, should be recorded as the initial amount of equity securities
and bonds securities.
Besides the long-term equity investments formed by business combination, the other long-term
equity investments shall be initially measured by cost, the cost is fixed in accordance with the ways
of gaining, such as actual cash payment paid by the Group, the fair value of equity securities issued
by the Group, the agreed value of the investment contract or agreement, the fair value or original
carrying amount of exchanged assets from non-monetary assets exchange transaction, the fair value
of the long-term equity investments, etc. The expenses, taxes and other necessary expenditures
directly related with gaining the long-term equity investments shall also be recorded into investment
cost. The long-term equity investment cost for those could execute significant influences on the
investees because of appending the investment or could execute joint control but not form as control,
should be as the sum of the fair value of the original held equity investment and the newly added
investment cost recognized according to the No. 22 of Accounting Standards for Business
Enterprises—Recognition and Measurement of Financial Instrument.
(2) Subsequent measurement and recognition of gains or losses
Long-term equity investment measured by cost method
The long-term equity investment which the Company could execute the control on the investees,
should be measured by cost method and shall be included at its initial investment cost and append
as well as withdraw the cost of investing and adjusting the long-term equity investment.
As for the long-term equity investment measured by cost method, the return on investment at
current period shall be recognized in accordance with the cash dividend or profit announced to
distribute by the invested entity, except the announced but not distributed cash dividend or profit
included in the actual payment or consideration upon gaining the investment.
Long-term equity investment measured by equity method
As for the long-term equity investment of the joint ventures and the associated enterprises, the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Company adopts the equity method for measurement; as for the one part of the equity investment
that indirectly held by the joint ventures through the similar main bodies such as the venture capital
Institutions, mutual fund, trust company or the unit-linked Insurance funds, should be measured by
adopting fair value with the changes be recorded in the gains and losses.
If the initial cost of a long-term equity investment is more than the Company’s attributable share of
the fair value of the invested entity’s identifiable net assets for investment, the initial cost of the
long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment
is less than the Company’s attributable share of the fair value of the invested entity’s identifiable net
assets for investment, the difference shall be included in the current profits and losses.
After the Company acquires the long-term equity investment, respectively recognize investment
income and other comprehensive income according to the net gains and losses as well as the portion
of other comprehensive income which should be enjoyed or be shared, and at the same time adjust
the book value of the long-term equity investment; corresponding reduce the book value of the
long-term equity investment according to profits which be declared to distribute by the investees or
the portion of the calculation of cash dividends which should be enjoyed; for the other changes
except for the net gains and losses, other comprehensive income and the owners’ equity except for
the profits distribution of the investees, should adjust the book value of the long-term equity
investment as well as include in the owners’ equities.
When executes the measurement on the long-term equity investment by the equity method, the
Company should adjust the net profits of the investees in the aspects such as the fair value,
accounting policies and accounting period of each identifiable asset of the investees when acquiring
firstly and secondly recognize the current investment gains and losses according to the net gains and
losses which should enjoyed or undertook of the investees.
For the unrealized profits or losses of internal transactions occurred among the Company and joint
ventures, the proportion attributable to the Company will be recognized based on the offset as the
investment gains and losses.
Recognition of share of losses of the invested companies under the equity method is treated in the
following steps: First, reduce the book value of the long-term equity investment. Second, when the
book value is insufficient to cover the share of losses, investment losses are recognized up to a limit
of book values of other long-term equity which form net investment in substance by reducing the
book value of long term receivables, etc. Finally, after all the above treatments, if the Company is
still responsible for any additional liabilities in accordance with the provisions stipulated in the
investment contracts or agreements, estimated liabilities are recognized and charged into current
investment loss according to the liabilities estimated. If the invested company achieve profit in
subsequent periods, the treatment is in the reversed steps described above after deduction of any
unrecognized investment losses, i.e., reduce book value of estimated liabilities recognized, restore
book values of other long-term equity which form net investment in substance, and in long-term
equity investment, and recognize investment income at the same time.
Disposal of the long-term equity investment
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
When disposing of a long-term equity investment, the difference between its book value and the
actual purchase price shall be included in the current profits and losses. As for the long-term equity
investment measured by adopting the equity method, when disposing the investment, should adopt
the same basis as the investees when directly disposing the relevant assets or liabilities and execute
the accounting treatment on the part which originally be recorded in the other comprehensive
income according to the corresponding proportion. As for the owners’ equities recognized owning
to the changes of the other owners’ equities except for the net gains and losses, other comprehensive
income and the profits distribution of the investees, should be carried down in the current gains and
losses according to the proportion. If lost the jointly control or the significant influences on the
investees owning to the reasons such as disposing part of the equity investment, the retained
equities after the disposal should change to be recognized according to the financial instruments and
be measured by the measure criterion, with the difference between the fair value on the date losing
the jointly control or the significant influences and the book value, should be recorded in the current
gains and losses. As for the other comprehensive income recognized owning to the original equity
investment which be measured by adopting the equity method, should be executed the accounting
treatment bases on the same basis as directly disposing the relevant assets or liabilities by the
investees when terminating the measurement by adopting the equity method. And the owners’
equities recognized owning to the changes of the other owners’ equities except for the net gains and
losses, other comprehensive income and the profits distribution, should be totally transferred in the
current gains and losses when terminating the measurement by adopting the equity method.
As for those lost the control right on the investees owning to the reasons such as disposing part of
the equity investment, when preparing the individual financial statement, if the retained equities
after the disposal could execute the jointly control or significant influences on the investees, should
change to be measured by equity method and execute the adjustment of the retained equity by
regarding which as adopting the equity method for measurement the time when acquires; and if the
retained equities after the disposal could not execute the jointly control or significant influences on
the investees, should change to be recognized according to the financial instruments and be
executed the accounting treatment according to the relevant regulations of the measure criterion
with the difference between the fair value on the date lost the control and the book value, should be
recorded in the current gains and losses.
If the disposed equity is acquired by the enterprise merger owning to the reasons such as the
additional investment, when preparing the individual financial statement, as for the disposed
retained equities be measured by adopting the cost method or the equity method, the other
comprehensive income and the other owners’ equities recognized owning to the equity investment
which adopts the equity method for measurement before the purchase date should be carried
forward according to the proportion; as for the disposed retained equities change to be recognized
according to the financial instruments and be executed the accounting treatment according to the
measure criterion, the other comprehensive income and other owners’ equities should be totally
carried forward.
(3) Judgment criterion of the jointly control and significant influences
If the Company jointly control certain arrangement according to the relevant agreement with the
other participants and owns the activity decision-making with significant influences on the return of
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
the arrangement, which only exists through the consensus of the participants with enjoy and control
right, should regard the Company and other participants jointly control certain arrangement and the
arrangement is the joint venture arrangement.
As for the joint venture arrangement reaches through the individual main body, when judging the
Company enjoying the right on the net assets of the individual main body according to the relevant
agreement, should regard the individual main body as the joint venture and should measure which
by adopting the equity method. If the Company not enjoys the right on the net assets of the
individual main body according to the relevant agreement after the judgment, the individual main
body should be regarded as the jointly operation and the Company should recognize the projects
related to the interest shares of the joint operation and execute the accounting treatment according
to the regulations of the relevant ASBE.
The term “significant influence” means having the power to participate in the formulation of
financial and operating policies of an enterprise, but not the power to control or jointly control the
formulation of these policies together with other parties. The Company judges whether there are
significant influences on the investees through one or various situations of the following and
comprehensively considers all the facts and situations. (1) there are representatives assigned in the
Board of Directors or the similar capability mechanisms in the investees; (2) participates in the
decision-making process of the financial and operating policies of the investees; (3) there are
significant transactions with the investees; (4) sends the administrative staffs to the investees; (5)
provides the key technical materials to the investees.
(4) Impairment testing and impairment provision methods
On the balance sheet date, if there are similar situations such as the book value of the long-term
equity investment larger than the shares of the book value of the owners’ equities of the investees,
the Company should execute the impairment test of the long-term equity investment according to
the No. 8 of ASBE – Assets Impairment and as for the recoverable amount less than book value of
the long-term equity investment, should be withdrawn the impairment provision. As for the specific
methods for withdrawing the assets impairment, please refer to Notes IV. 19.
14. Investment real estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
Investment real estates refer to the real estate held for gaining the rental or the capital appreciation
or for both causes mentioned above, which includes the leased land use right, held-to-transferred
land use right after appreciation and the leased buildings.
The Company adopts cost mode measurement on the current investment real estates. For investment
properties and rental assets measured at the cost model, they will be implemented the same
depreciation policy similar to fixed assets, land use right for rental will be implemented the same
amortization policy to intangible assets; for those with the indication of impairment, the recoverable
amount can only be estimated, and if recoverable amount is lower than its book value, the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
corresponding impairment loss should be confirmed.
15. Fixed assets
(1) Conditions for recognition
Fixed assets are tangible assets that are held for use in the production or supply of services, for
rental to others, or for administrative purposes; they have useful lives over one fiscal year. And they
shall be recognized only when both of the following conditions are satisfied: A. It is probable that
economic benefits associated with the assets will flow to the enterprise; B. The cost of the fixed
assets can be measured reliably.
(2) Depreciation methods
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Buildings and Average method of
35 5% 2.71%
constructions useful life
Average method of
Machinery equipment 10 5% 9.50%
useful life
Transportation Average method of
8 5% 11.88%
equipment useful life
Office equipment and Average method of
5 5% 19.00%
others useful life
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
The fixed assets gained from financing leasing, if could ensure reasonable to gain the ownership of
the leasing assets when the term expired, should withdraw the depreciation during the service
period of the leasing assets; if could not ensure reasonable to gain the ownership of the leasing
assets when the term expired, should withdraw the depreciation during the shorter period between
the leasing period and the service period of the leasing assets.
If the fixed assets gained from the financing leasing method met with the capitalization condition of
the remodeling expense, should average amortized according to the shortest period among the
period between the two decorations, the rest leasing period and the service period of the fixed
assets.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
16. Construction in progress
(1) Classification of construction in progress
The Construction in progress will be calculated based on the classification of proposed projects.
(2) Transfer time of construction in progress to fixed assets
For the construction in progress, all expenses occurring before they are ready for the use will be the
book values as the fixed assets. In case the construction in progress has been ready for use but the
final accounts for completion have not been handled, from the date when such projects has been
ready for use, the Company will evaluate the values and determine the costs based on the project
budgets, prices or actual costs of projects, etc and the depreciation amount will also be withdrawn;
when the final accounts for completion are handled, the Company will adjust the originally
evaluated values subject to the actual costs, but will not adjust the withdrawn depreciation amount.
17. Borrowing expenses
(1) Confirmation principle of capitalization of borrowing expenses
In case the borrowing expenses occurring in the Company may directly be attributable to the
construction and productions of assets complying with the capitalization conditions, they will be
capitalized and accrued to the relevant capital costs; other borrowing expenses will be confirmed as
the expenses based on the actual amount at the time of occurrence and accrued to the current profit
or loss.
The assets complying with the capitalization conditions mean the assets such as fixed assets,
investment real estates and inventory, etc that need a long time of construction and production
activities before they are ready for use or for sales.
The borrowing expenses begin to be capitalized under the following circumstances:
A. The asset payment have been made which include the payment such as the paid cashes,
transferred non-currency assets or borne liabilities with the interests to construct or produce the
assets complying with the capitalization conditions;
B. The borrowing expenses have occurred;
C. The necessary construction or production activities to make the assets ready for use or sales have
been launched.
In case during the construction or production period the assets complying with the capitalization
conditions are abnormally suspended and the suspension period exceeds 3 months continuously, the
capitalization of borrowing expenses will also be suspended.
The capitalization of borrowing expenses for the assets that have been constructed or produced and
are ready for use or sales will be stopped.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
When parts of the purchased assets or assets whose production satisfies the capitalization conditions
are completed respectively and can be used individually, the capitalization of the borrowing
expenses of these parts will be stopped.
(2) Capitalization period of borrowing expenses
The capitalization period means the period from the moment that the borrowing expenses start to be
capitalized to the moment that the capitalization is stopped, which does not include the period that
the capitalization of borrowing expenses is suspended.
(3) Calculation method about capitalization amount of borrowing expenses
The interest expenses for special loans (after the deduction of interest income generated by the
unused loan capitals or the investment return obtained from the temporary investments) and
auxiliary expenses will be capitalized before the assets complying with the capitalization conditions
are ready for the expected use or sales.
The interest amount of general loans to be capitalized will be determined by multiplying the
weighted average amount of the asset payment by which the accumulated assets exceed the special
loans with the capitalization rate of general loans. The capitalization rate will be determined based
on the weighted average interest rate of general loans.
In case the loans have the discounts or premiums, the Company will adjust the interest amount in
each period based on the amortized discount and premium amount in each accounting period in
accordance with the actual interest rate method.
18. Intangible assets
(1) Pricing method, service life and impairment test
(1) Pricing method of the intangible assets
Recorded ordinarily according to the actual cost when acquired;
When acquiring, the intangible assets are generally recorded according to actual cost.
A. For those the price of intangible assets deferred paid exceed normal credit condition so
substantively has financing character, the cost of intangible assets is confirmed on the basis of
present value of purchasing price.
B. For fixed assets formed through obtaining them by the debtor paying for debt in debt restructure,
recognize its recording value as fair value of the fixed assets, and record the difference between the
carrying amounts of debt restructure and the fixed assets used for paying debt into current profit or
loss; in the circumstance of the non monetary assets exchange has commercial nature and fair value
of surrendered or received assets can be measured reliably, recording value of received assets
should be recognized as fair value of surrendered assets unless there is clear evidence to indicate
that fair value of received assets is more reliable; for non monetary assets exchange which doesn’t
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
meet the requirement of premise mentioned above, cost of received assets should be recognized as
carrying amount and related tax expenses payable of surrendered assets and should not be
recognized as profit or loss.
C. Recording value of fixed assets obtained by absorbing and consolidated by enterprise under the
common control should be recognized as carrying amount of the consolidated party; recording
value of fixed assets obtained by absorbing and consolidated by enterprise under different control
should be recognized as fair value.
(2) Service life and amortization of the intangible assets
A. Estimation of useful life for intangible assets with finite useful life
At end of each year, the Company will recheck the useful life of intangible assets with the definite
useful life and amortization method will be rechecked.
According to the re-check, the useful life and amortization method of the intangible assets at the
end of the year are not different from those estimated before.
B. Amortization of the intangible assets:
In case their useful life is limited, the intangible assets are amortized evenly over the period in
which they produce economic profit for the Company; in case it is impossible to evaluate the useful
life when the intangible assets bring the benefits to enterprises, it will be deemed that the useful life
of such intangible assets is uncertain and amortization is not applicable and not execute the
amortization.
19. Long-term assets impairment
For the long-term non-current financial assets of the fixed assets, projects under construction and
intangible assets, the Company would judge whether decrease in value exists on the date of balance
sheet at every period-end. No matter whether there is any sign of possible assets impairment, the
business reputation formed by the merger of enterprises and intangible assets with uncertain service
lives shall be subject to impairment test every year.
If there is the sign of possible impairment of the assets, should estimate the recoverable amount:
(1) Where there is any evidence indicating a possible impairment of assets, the enterprise shall, on
the basis of single item assets, estimate the recoverable amount.
(2) Where it is difficult to do so, it shall determine the recoverable amount of the group assets on
the basis of the asset group to which the asset belongs.
(3) The recoverable amount shall be determined on the basis of the higher one of the net amount of
the fair value of the asset minus the disposal expenses and the current value of the expected future
cash flow of the asset
Where the recoverable amount of the assets is lower than its carrying value, the book value of the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
assets should be written down to the recoverable amount with the written-down amount be
recognized as the impairment losses of the assets and record which in the current gains and losses as
well as at the same time withdraw the corresponding impairment provision of the assets.
After the recognition of the impairment losses of the assets, the depreciation or the amortization
expenses of the impairment assets should be corresponding adjusted in the future period to lead the
assets in the retained service life so that to systematically sharing the book value of the assets after
the adjustment (deducted the expected net salvage).
The impairment losses of the long-term non-current financial assets of the fixed assets, projects
under construction and intangible assets once being recognized should no longer be reversed in the
accounting period afterwards.
20. Long-term expenses to be amortized
Long-term expenses to be amortized will be averagely amortized in the benefit period, including:
(1) Prepaid rentals for operating leased fixed assets will be averagely amortized according to the
term stipulated in the lease contract.
(2) Fixed assets improvement expenses for operating leased fixed assets will be averagely
amortized according to the remaining lease period and the useful life of leased assets, whichever is
shorter.
21. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation refers to the Company needs to pay all of the payroll for the employees
within 12 months after the end of the annual Reporting Period during which the employees provide
the relevant service and exclude the welfare after demission and the demission welfare. The
short-term compensation actually happened during the accounting period when the active staff
offering the service for the Company should be recognized as liabilities and is included in the
current gains and losses or relevant assets cost. During the accounting period the service workers
providing the service, the social insurance charges such as the medical treatment, industrial injury,
birth insurance and the housing fund paid for the employees by the Company as well as the labor
union expenditure and the personnel education fund withdrawn according to the regulations, should
be calculated the corresponding amount of the payroll according to the stipulated withdraw basis
and withdraw proportion
If the employee services and benefits is the non-monetary welfare, should be measured by fair
value.
(2) Accounting treatment of the welfare after demission
Welfare after demission refers to various forms of the compensation and benefits provided by the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Company which receive the service from the employees after the retirement or the relieve of the
labor relation with the enterprise of the service workers, except for the short-term compensation and
dismission welfare. Welfare plan after demission is classified into defined contribution plans and
defined benefit plans.
A. Defined contribution plans
During the accounting period the service workers providing the service for the Company, the
Company should pay the basic endowment insurance and unemployment insurance for the
employees according to the relevant regulations of the local government and the payable amount
calculated according to the cardinal number of the payment as well as the proportion stipulated by
the local, should be recognized as the liabilities and record which in the current gains and losses or
the relevant assets cost.
The Company pays the fees for the local social insurance agencies according to the certain
proportion of the total amount of the staff salaries and the corresponding expenses should be
recorded in the current gains and losses or the relevant assets cost.
B. Defined benefit plans
The Company attributes the benefits obligations from the defined benefit plans according to the
formula recognized by the expected accumulative benefit units to the period the employees
providing the service and records which in the current gains and losses or the relevant assets cost.
The deficits or surplus formed from the current value of the defined benefit plans obligations
minuses the fair value of the defined benefit plans assets should be recognized as a net liability or
net assets of the defined benefit plans. If there is surplus of the defined benefit plans, the Company
should measure the net assets of the defined benefit plans according to the lower one between the
surplus and the assets of the defined benefit plans.
All the obligations of the defined benefit plans, including the obligations paid within 12 months
after the end of the expected annual Reporting Period the service workers providing the service,
should be discounted according to the national debt matched with the obligatory term of the defined
benefit plans and the currency on the balance sheet date or the market returns of the high-quality
company bonds on the active market.
The service cost from the defined benefit plans and the net liabilities or the net amount of the
interests of the net assets from the defined benefit plans should be recorded in the current gains and
losses or the relevant assets cost; the net liabilities of the defined benefit plans be remeasured or the
changes from the net assets should be recorded in the other comprehensive income and should not
be reversed to the gains and losses in the follow-up accounting period.
When settling the defined benefit plans, should recognize the settled gains or losses according to the
difference between the current value of the defined benefit plans recognized on the settlement date
and the settlement price.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
(3) Accounting treatment of the demission welfare
When the Company can not unilaterally withdraw the earlier one between the demission welfare
provided owning to the relieve of the labor relation plans or the reduction advices and the
recognition of the cost or expenses related to the reorganization involved with the payment of the
demission welfare, the liabilities of the employee compensation from the demission welfare should
be recognized and be recorded in the current gains and losses.
22. Estimated liabilities
(1) Recognition principles:
Only if the obligation pertinent to a contingencies such as external guarantee, unsettled lawsuits or
arbitrations, quality guarantee of the products, losses contracts, restructuring obligations, retirement
obligations of fixed assets shall be recognized as an estimated debts when the following conditions
are satisfied simultaneously:
A. That obligation is a current obligation of the Company;
B. It is likely to cause any economic benefit to flow out of the Company as a result of performance
of the obligation; and
C. The amount of the obligation can be measured in a reliable way.
(2) Measurement methods:
The Company shall measure the estimated debts in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
When recognizing the current best estimate, the Company should comprehensive consider the
elements such as the risks, uncertainty and currency time and value of the contingencies.
The best estimate should be respectively disposed according to the following situations:
A. If there is a sequent range (or section) for the necessary expenses and if all the outcomes within
this range are equally likely to occur, the best estimate shall be determined in accordance with the
middle estimate which is equaled to the average amount of the bound amount within the range.
B. When there is not a sequent range (or section) for the necessary expenses, or there is a sequent
range but the possibility of various kinds of results happed would be different within the range, so if
the contingencies concern a single item, the best estimate shall be determined in the light of the
most likely outcome; and if the contingencies concern two or more items, the best estimate should
be calculated and determined in accordance with all possible outcomes and the relevant
probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party, the compensation should be separately
recognized as an asset when it is virtually certain that the reimbursement will be obtained and the
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
amount recognized for the reimbursement should not exceed the book value of the estimated debts.
23. Income
(1) Sales of goods
Revenue from the sale of goods is recognized when the enterprise has transferred to the buyer the
significant risks and rewards of ownership of the goods; the enterprise retains neither continuing
managerial involvement to the degree usually associated with ownership nor effective control over
the goods sold; it is probable that the economic benefits associated with the transaction will flow to
the enterprise; and the relevant amount of revenue and costs can be measured reliably.
Real estate sales will be confirmed the realization of revenue thereof upon the complete and
acceptance of real estate, meeting the delivery terms of sales contract, and obtaining the proof of
payment made by the purchasers according to the agreement under the contract on delivering real
estate (usually after receiving the first phase of sales contract payment and confirming the payment
arrangements of the remaining).
(2) Providing service
In case on the preparation date of balance sheet the results about service transaction can be reliably
evaluated, the labor income will be confirmed by the completion percentage method. The
completed percentage of service transactions is determined by the measurement of finished work
(or the proportion of services performed to date to the total services to be performed, or the
proportion of costs incurred to date to the estimated total costs).
The Company will determine the total amount of rendering of service based on the prices in
contracts and agreements that have been received or will be receivable, except that such prices are
not fair. On the balance sheet date, the current labor incomes will be determined based on the
amount after the total labor income amount multiplied by the completion progress deducts the
accumulated labors in the past accounting periods. At the same time, the current labor incomes will
be carried forward based on the amount after the estimated total labor cost multiplied by the
completion progress deducts the accumulated labors in the past accounting periods.
In case the service transaction results on the preparation date of balance sheet cannot be reliably
evaluated, they will be determined in the following methods:
A. In case the service costs that have occurred can be compensated, the service income will be
confirmed based on such service costs and the same amounts will be settled as the service costs.
B. In case the service costs that have occurred cannot be compensated, such service costs will be
accrued to the current profit or loss and will not be confirmed as the service costs.
(3) Use right of transferred assets
In case the economic benefits related to the transaction will probably flow into the enterprise and
the income amounts can be reliably calculated, the Company will determine the income amount
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
about use right of transferred assets by the following means:
A. The interest income amount will be calculated and determined based on the use time of currency
capital from the Company by others and actual interest rate.
B. The income amount of use expenses will be calculated and determined subject to the charging
time and method agreed in the relevant contracts and agreements.
(4) Government subsidies
Government grants refer to monetary assets or non-monetary assets obtained free by a company
from the government, but not include the capital invested by government as a business owner.
Government grants are classified to government grants related to assets and government grants
related to income.
The government grants should be recognized when simultaneously met with the following
conditions:
A. The Company can meet the conditions for the government subsidies;
B. The enterprise can obtain the government subsidies.
Government grants related to assets are recognized as deferred income and are averagely distributed
in the life of relevant assets, and recorded to current profit or loss. Government grants related to
income are handled under the following circumstances:
A. If such grants are used to compensate for relevant costs and losses of the company during later
periods, they will be recognized as deferred income and recorded to current profit or loss upon
recognizing related costs;
B. If such grants are used to compensate for relevant costs and losses occurred of the company, they
will be directly through current profit or loss.
24. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
Government grants refer to monetary assets or non-monetary assets obtained free by a company
from the government, but not include the capital invested by government as a business owner.
Government grants are classified to government grants related to assets and government grants
related to income.
The government grants should be recognized when simultaneously met with the following
conditions:
A. The Company can meet the conditions for the government subsidies;
B. The enterprise can obtain the government subsidies.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Government grants related to assets are recognized as deferred income and are averagely distributed
in the life of relevant assets, and recorded to current profit or loss. Government grants related to
income are handled under the following circumstances:
A. If such grants are used to compensate for relevant costs and losses of the company during later
periods, they will be recognized as deferred income and recorded to current profit or loss upon
recognizing related costs;
B. If such grants are used to compensate for relevant costs and losses occurred of the company, they
will be directly through current profit or loss.
25. Deferred income tax assets/deferred income tax liabilities
Corporate income tax will be calculated by liability method of the balance sheet.
The company’s tax base will be determined upon the company obtains the assets or liabilities; on
the balance sheet date, take the balance sheet as the basis, and if the book value of related assets or
liabilities are different to the tax bases provided by tax laws, it will calculate and confirm the
deferred income tax assets or deferred income tax liabilities occurred in accordance with the
provisions of tax laws, which effect will be included in current income tax expense.
The company is subject to the limit of the amount of taxable income likely to be used to offset
temporary difference, thus confirms the deferred income tax asset produced by the deductible
temporary difference.
In addition to the cases specified under income guidelines that no need to confirm the deferred
income tax liabilities, the company should recognize related deferred income tax liabilities for all
taxable temporary differences.
26. Lease
(1) Accounting treatment of operating lease
If the terms of the lease will be transferred to the lessee substantially together with all the risks and
rewards related to the ownership of leased assets, then the lease is a finance lease, and other lease is
operating lease.
(1) the Company as the leaser
In finance lease, at the lease beginning date, the Company takes the minimum lease receipt and the
initial direct costs as the entry value of finance lease receivable, and records the unguaranteed
residual value; and the difference between the sum of minimum lease receipt, initial direct costs and
unguaranteed residual value and its present value is recognized as unrealized finance income. For
unrealized finance income each period during the lease term, it will use the effective interest
method to confirm the current financing income.
For rent in operating leases, the Company will use the straight-line method to recognize the current
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
gains and losses. The initial direct costs occurred will be through current profit or loss.
(2) the Company as the leasee
In finance lease, at the lease beginning date, the Company will take the lower of the fair value of the
leased assets and the present value of minimum lease payment as the entry value of leased assets,
and take the minimum lease payment as the entry value of long-term payables, and their difference
will be as unrecognized finance cost. Initial direct costs are included in the value of leased assets.
For unrecognized finance income each period during the lease term, it will use the effective interest
method to confirm the current financing cost.
The Company uses depreciation policy consistent with its own fixed assets to make provision for
depreciation of leased assets.
For rent in operating leases, the Company will use the straight-line method to record it into the cost
of relevant assets or current profit or loss in each period during the lease term; and initial direct
costs occurred will be through current profit or loss.
Rent in operating leases will be recorded into the cost of relevant assets or current profit or loss in
each period during the lease term.
27. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimates
□ Applicable √ Not applicable
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Revenue of product 17%
Consumption tax Revenue of sale of taxable product 5%
Business tax Revenue of sales of real estate 5
Consumption tax, VAT and business tax
Urban maintenance and construction tax 7%
the taxpayer actually paid
Corporate income tax Income tax payable 25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
2. Tax preference
1. The Company implements the uniform tax rebate policy of export, i.e. the export is exempt from VAT and the input-VAT of goods
is refunded with refund rate according to relevant rules before export in accordance with the requirements of tax law.
2. Since 1 January 2008, other subsidiaries of the Company has adopted the applicable income tax rate of 25%, except for those
company established in the below-mentioned districts.
Companies established in Hong Kong SAR are entitled to a profits tax rate of 16.5%.
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 1,208,935.64 370,113.31
Bank deposits 302,636,688.39 301,074,751.72
Other monetary funds 29,363.27 26,440.18
Total 303,874,987.30 301,471,305.21
Of which: total amount deposited in
3,591.82 1,185.76
overseas
Other notes:
There was no any account pledged, frozen or with potential recovery risks of the Company at the
period-end.
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB
Item Closing balance Opening balance
Trading financial assets 0.00 4,400.00
Equity tool investment 0.00 4,400.00
Total 4,400.00
Other notes:
3. Accounts receivable
(1)Accounts receivable disclosed by category
Unit: RMB
Category Closing balance Opening balance
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Book balance Bad debt provision Book balance Bad debt provision
Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with insignificant
single amount for 14,833,4 14,833,4 14,666, 14,666,07
66.10% 100.00% 0.00 63.53% 100.00%
which bad debt 13.03 13.03 079.26 9.26
provision separately
accrued
Accounts receivable
withdrawal of bad
6,986,28 3,142,53 3,843,748 7,799,0 3,142,533 4,656,499.2
debt provision of by 31.13% 44.98% 33.78% 40.29%
4.31 5.92 .39 32.40 .20 0
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 620,906. 620,906. 620,906 620,906.2
2.77% 100.00% 0.00 2.69% 100.00%
which bad debt 25 25 .25 5
provision separately
accrued
22,440,6 18,596,8 3,843,748 23,086, 18,429,51 4,656,499.2
Total 100.00% 82.87% 100.00% 79.83%
03.59 55.20 .39 017.91 8.71 0
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable Closing balance
(classified by units) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Long-term credit, the
Victoria International
5,724,227.37 5,724,227.37 100.00% Company believe it
(USA) INC
irrecoverable
Long-term credit, the
Hong Kong Jinhua
4,224,304.63 4,224,304.63 100.00% Company believe it
Trading Company
irrecoverable
Long-term credit, the
Jin Jing International
2,544,982.60 2,544,982.60 100.00% Company believe it
Co., Ltd.
irrecoverable
Brendwood International Long-term credit, the
2,339,898.43 2,339,898.43 100.00%
Corp Company believe it
88
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
irrecoverable
Total 14,833,413.03 14,833,413.03 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
420,109.27 24,659.87 5.87%
Subtotal within 1 year 420,109.27
1 to 2 years 3,831,043.20 383,104.32 10.00%
Over 3 years 2,735,131.84 2,734,771.73 99.99%
Total 6,986,284.31 3,142,535.92 44.98%
Notes:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB167, 336.49; the amount of the reversed
or collected part during the Reporting Period was of RMB0.00.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of the entity Amount Method
(3) Top five of account receivable of closing balance collected by arrears party
Name of the Amount Bad debt provision Proportion
entity %
Victoria International (USA) INC 5,724,227.37 5,724,227.37 25.51
Hong Kong Jinhua Trading 4,224,304.63 4,224,304.63 18.82
Company
Jin Jing International Co., Ltd. 2,544,982.60 2,544,982.60 11.34
Brendwood International Corp 2,339,898.43 2,339,898.43 10.43
Chen Dantao 3,828,887.96 382,888.80 17.06
Total 18,662,300.99 15,216,301.83 83.16
89
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
4. Prepayment
(1) List by aging analysis:
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 295,564.41 100.00% 855,041.60 100.00%
Total 295,564.41 -- 855,041.60 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Naught
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Name of the entity Closing amount Proportion (%) Time Reason
Shenzhen Zhongsheng Huichi 200,000.00 67.67 Y2016 The contract is not
Cars Sales Co., Ltd. fulfilled
Wei Jiwen 63,422.00 21.46 Y2016 The contract is not
fulfilled
Ping An Bank 32,142.41 10.87 Y 2015 The contract is not
fulfilled
Total 295,564.41 100.00
Other notes:
The closing balance decrease RMB559, 477.19, of 65.43% over last year, was mainly the
prepayment for furniture had been accepted and settled.
5. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Other accounts
receivable with 2,331,60 2,331,60 2,331,6 2,331,608
9.05% 100.00% 0.00 7.47% 100.00%
insignificant single 8.20 8.20 08.20 .20
amount for which
90
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
bad debt provision
separately accrued
Other accounts
receivable withdrawn
19,888,9 18,484,5 1,404,400 26,103, 18,484,54 7,618,577.7
bad debt provision 80.16% 92.94% 83.63% 70.81%
41.91 41.31 .60 119.03 1.31 2
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 2,778,22 2,778,22 2,778,2 2,778,227
10.79% 100.00% 0.00 8.90% 100.00%
amount for which 7.36 7.36 27.36 .36
bad debt provision
separately accrued
24,998,7 23,594,3 1,404,400 31,212, 23,594,37 7,618,577.7
Total 100.00% 100.00% 75.59%
77.47 76.87 .60 954.59 6.87 2
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Other accounts
Other accounts
receivable (unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Long-term credit, the
Refund of tax for export
2,331,608.20 2,331,608.20 100.00% Company believe it
receivable
irrecoverable
Total 2,331,608.20 2,331,608.20 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
824,713.75 140,625.88 17.05%
Subtotal within 1 year 824,713.75 140,625.88 17.05%
1 to 2 years 19,111.29 6,946.77 36.35%
2 to 3 years 1,028,770.54 576,455.34 56.03%
Over 3 years 18,016,346.33 17,760,513.32 98.58%
Total 19,888,941.91 18,484,541.31 92.94%
Notes:
91
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or
collected part during the Reporting Period was of RMB0.00.
Of which the significant amount of the reversed or collected part during the Reporting Period:
Unit: RMB
Name of the entity Reversed or collected amount Method
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
The cash pledge and guarantee 116,851.54 125,682.00
Payment on behalf 839,344.41 801,672.94
Intercourse funds 24,042,581.52 30,285,599.65
Total 24,998,777.47 31,212,954.59
(4) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
Refund of tax for
export Tax 2,331,608.20 Over 5 years 9.33% 2,331,608.20
receivable-VAT
Puning Zhongxing
Intercourse funds 1,170,000.00 Over 5 years 4.68% 1,170,000.00
UniteTextileCo., Ltd.
Puning Lixiangsheng
Clothing
Intercourse funds 1,000,000.00 Over 5 years 4.00% 1,000,000.00
Manufacture Co.,
Ltd.
Zhenzhiyun
International Trade Intercourse funds 1,000,000.00 Over 5 years 4.00% 1,000,000.00
(Shanghai) Co., Ltd.
Suning Banhe Intercourse funds 800,000.00 Over 5 years 3.20% 800,000.00
92
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Chemical Fiber
Fabric Simulation
Co., Ltd.
Total -- 6,301,608.20 -- 25.21% 6,301,608.20
6. Inventory
(1) Category of inventory
Unit: RMB
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 25,442,883.96 25,442,883.96 6,006,524.95 6,006,524.95
Inventory goods 34,974,261.78 34,974,261.78 46,094,899.62 46,094,899.62
Delivery
18,530.58 18,530.58 1,131,111.11 1,131,111.11
commodity
Total 60,435,676.32 60,435,676.32 53,232,535.68 53,232,535.68
(2) Impairment of inventories
Unit: RMB
Increased amount Decrease
Item Opening balance Reverse or Closing balance
Withdrawal Others Others
write-off
No such case in Reporting Period
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
There was no closing balance of the inventory which includes capitalized borrowing expenses
7. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Machinery Office equipment
Item Transportation Total
buildings equipment and other
I. Original book
value
93
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
1. Opening balance 119,088,227.16 165,411.00 4,020,617.15 1,243,394.92 124,517,650.23
2. Increased amount
1,193,075.92 1,193,075.92
of the Period
(1) Purchase 1,193,075.92 1,193,075.92
(2) Transfer of
project under
construction
(3) Enterprise
combination increase
3. Decreased amount
of the Period
(1) Disposal or Scrap
4. Closing balance 119,088,227.16 165,411.00 4,020,617.15 2,436,470.84 125,710,726.15
II. Accumulative
depreciation
1. Opening balance 45,398,124.46 98,967.50 3,052,641.74 849,884.64 49,399,618.34
2. Increased amount
1,601,098.68 5,251.02 205,745.22 106,831.96 1,918,926.88
of the Period
(1) Withdrawal 1,601,098.68 5,251.02 205,745.22 106,831.96 1,918,926.88
3. Decreased amount
of the Period
(1) Disposal or Scrap
4. Closing balance 46,999,223.14 104,218.52 3,258,386.96 956,716.60 51,318,545.22
III. Depreciation
reserves
1. Opening balance
2. Increased amount
of the Period
(1) Withdrawal
3. Decreased amount
of the Period
(1) Disposal or Scrap
94
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
4. Closing balance
IV. Book value
1. Closing book
72,089,004.02 61,192.48 762,230.19 1,479,754.24 74,392,180.93
value
2. Opening book
73,690,102.70 66,443.50 967,975.41 393,510.28 75,118,031.89
value
(2) List of temporarily idle fixed assets
Unit: RMB
Accumulative Impairment
Item Original book value Book value Notes
depreciation provision
Houses and
40,281,405.99 18,787,571.00 21,493,834.99
buildings
Machinery
165,411.00 104,218.52 61,192.48
equipment
8. Intangible assets
(1) List of intangible assets
Unit: RMB
Item Land use right Patent right Non-patent right Computer software Total
I. Original book
value
1. Opening balance 33,659,416.00 373,115.00 34,032,531.00
2. Increased amount
of the Period
(1) Purchase
(2) Internal R&D
(3) Enterprise
combination increase
3. Decreased amount
of the Period
(1) Disposal
95
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
4. Closing balance 33,659,416.00 373,115.00 34,032,531.00
II. Accumulated
amortization
1. Opening balance 7,958,803.39 373,115.00 8,331,918.39
2. Increased amount
336,594.12 336,594.12
of the Period
(1) Withdrawal 336,594.12 336,594.12
3. Decreased amount
of the Period
(1) Disposal
4. Closing balance 8,295,397.51 373,115.00 8,668,512.51
III. Depreciation
reserves
1. Opening balance
2. Increased amount
of the Period
(1) Withdrawal
3. Decreased amount
of the Period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book
25,364,018.49 25,364,018.49
value
2. Opening book
25,700,612.61 25,700,612.61
value
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets
at the period-end.
9. Goodwill
(1) Original book value of goodwill
Unit: RMB
96
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
CHINESE GOLD
2,395,820.87 2,395,820.87
NOBILITY
Total 2,395,820.87 2,395,820.87
(2) Impairment provision of goodwill
Unit: RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
CHINESE GOLD
NOBILITY
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses:
In line with the Capital increase agreement signed by the Company and the CHINESE GOLD
NOBILITY, the CHINESE GOLD NOBILITY had fulfilled 50% profits committed, after test, the
recoverable goodwill was no less than RMB2,395,820.87, thus, the impairment provision of
goodwill would not been withdrawn in Reporting Period.
Other notes:
10. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
13,855,280.84 3,463,820.21 13,855,280.84 3,463,820.21
provision
Total 13,855,280.84 3,463,820.21 13,855,280.84 3,463,820.21
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
97
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
difference liabilities difference liabilities
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
3,463,820.21 3,463,820.21
assets
(4) List of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 20,259,246.64 20,259,246.64
Deductible losses 41,522,565.37 41,522,565.37
Total 61,781,812.01 61,781,812.01
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Years Closing amount Opening amount Notes
2015
2016 3,205,969.16 3,205,969.16
2017 661,650.60 661,650.60
2018 19,429,361.72 19,429,361.72
2019 14,209,131.72 14,209,131.72
2020 4,016,452.17 4,016,452.17
Total 41,522,565.37 41,522,565.37 --
Other notes:
11. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
98
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Goods payment 1,431,229.29 1,594,036.50
Total 1,431,229.29 1,594,036.50
12. Advance from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Goods payment 15,393,117.11 14,718,891.99
Total 15,393,117.11 14,718,891.99
(2) Significant advance from customers aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
KEENZONE LIMITED 12,717,448.58 Had not deliver the goods
Total 12,717,448.58 --
13. Payroll payable
(1) List of Payroll payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 449,772.90 2,132,055.58 2,134,433.05 447,395.43
II. Post-employment
benefit-defined 118,103.26 118,103.26
contribution plans
Total 449,772.90 2,250,158.84 2,252,536.31 447,395.43
(2) List of Short-term salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
432,630.16 1,909,527.98 1,892,620.71 449,537.43
allowance, subsidy
2. Employee welfare 17,142.74 140,197.50 157,340.24
3. Social insurance 63,856.10 63,856.10
99
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Of which: 1. Medical
58,991.12 58,991.12
insurance premiums
Work-related injury
1,548.03 1,548.03
insurance
Maternity insurance 3,316.95 3,316.95
4. Housing fund 18,474.00 20,616.00 -2,142.00
Total 449,772.90 2,132,055.58 2,134,433.05 447,395.43
(3) List of drawing scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 113,417.82 113,417.82
2. Unemployment
4,685.44 4,685.44
insurance
Total 118,103.26 118,103.26
Other notes:
14. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT -9,147,181.81 -8,675,656.06
Business tax 981,313.74 926,208.12
Corporate income tax 17,621,141.27 16,912,953.04
Others 3,572,691.31 3,633,274.35
Total 13,027,964.51 12,796,779.45
Other notes:
15. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB
Item Closing balance Opening balance
Intercourse funds 48,339,563.55 46,615,269.11
Payment on behalf 576,031.24 448,708.25
Others 100,109.74 98,796.03
100
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Total 49,015,704.53 47,162,773.39
16. Share capital
Unit: RMB
Increase/decrease (+/-)
Opening Capitalized Closing
New shares
balance Bonus shares Capital Others Subtotal balance
issued
reserves
The sum of
318,600,000.00 318,600,000.00
shares
Other notes:
17. Capital surplus
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium 52,129,496.58 52,129,496.58
Total 52,129,496.58 52,129,496.58
Other notes, including changes and reason of change:
18. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
49,036,260.20 49,036,260.20
reserves
Discretionary surplus
37,000,000.00 37,000,000.00
reserves
Total 86,036,260.20 86,036,260.20
Other notes, including changes and reason of change
19. Retained earnings
Unit: RMB
Item Reporting Period Last period
Opening balance of retained profits before
-92,329,076.97 -84,077,977.39
adjustments
Opening balance of retained profits after -92,329,076.97 -84,077,977.39
101
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
adjustments
Add: Net profit attributable to owners of the
-4,308,101.71 -8,251,099.58
Company
Closing retained profits -96,637,178.68 -92,329,076.97
List of adjustment of opening retained profits:
1) RMB0 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0 opening retained profits was affected by changes on accounting policies.
3) RMB0 opening retained profits was affected by correction of significant accounting errors.
4) RMB0 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0 opening retained profits was affected totally by other adjustments.
20. Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 200,186,975.70 190,594,842.57 84,853,785.15 73,218,005.25
Total 200,186,975.70 190,594,842.57 84,853,785.15 73,218,005.25
21. Business tax and surcharges
Unit: RMB
Item Reporting Period Same period of last year
Consumption tax 1,171.35
Business tax 1,632,143.20
Urban maintenance and construction tax 71,083.83 135,960.78
Education Surcharge 50,734.11 97,127.02
Land VAT 1,136,442.60
Total 122,989.29 3,001,673.60
Other notes:
22. Sale expenses
Unit: RMB
Item Reporting Period Same period of last year
Advertising expense 1,500.00
Salary 658,210.13 138,057.49
102
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Office expenses 2,048.00 283.02
Depreciation 15,631.58 7,237.08
Entertainment expenses 29,936.80 1,599.00
Social security charges 57,162.44 8,764.19
Business travel charges 57,635.40
Testing expenses 62,651.00 6,272.00
Software fee 94,273.08
Other expenses 212,344.03 7,327.40
Total 1,189,892.46 171,040.18
Other notes:
23. Administration expenses
Unit: RMB
Item Reporting Period Same period of last year
Depreciation 1,903,295.30 1,331,285.51
Salary 1,284,020.04 1,276,868.14
Automobile expenses 475,858.98 419,001.62
Rental charges 1,055,680.49 265,103.97
Legal adviser consulting fees 150,000.00
Welfare fee 377,624.98 184,983.10
Entertainment expenses 326,342.90 561,778.32
Office expenses 556,227.81 153,502.39
Social security charges 134,414.08 151,295.69
Water & electricity fees 159,475.84 91,024.80
Amortization of intangible assets 336,594.12 138,631.92
Others 351,957.20 302,022.57
Total 6,961,491.74 5,025,498.03
Other notes:
24. Financial expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses 645,695.56 705,900.00
Less: Interest income 17,501.15 37,006.24
103
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Exchange loss 104,650.69 4,079.70
Less: exchange earning 14,180.07 1,518.70
Handling and other 21,268.83 20,695.55
Total 739,933.86 692,150.31
Other notes:
25. Asset impairment loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 167,333.77 -657,691.40
Total 167,333.77 -657,691.40
Other notes:
26. Gains and losses from changes in fair value
Unit: RMB
Sources Reporting Period Same period of last year
2. Financial assets measured by fair value
and the changes be included in the current -148.00
profits and losses
Total -148.00
Other notes:
27. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Investment income arising from disposal of
4,777,303.71
long-term equity investments
Investment income received from disposal of
financial assets measured by fair value and the
-1,522.94 9,507,297.71
changes be included in the current profits and
losses during holding period
Total -1,522.94 14,284,601.42
Other notes:
28. Non-operating gains
Unit: RMB
104
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Others 0.44 200,000.28 0.44
Total 0.44 200,000.28 0.44
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
subsidies
Special Related to
Distribution Distribution influence the Reporting Same period
Item Nature subsidy or assets/related
entity reason current Period of last year
not income
profits and
losses or not
Other notes:
29. Non-operating expenses
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Donation 200,000.00 200,000.00
Fine for delaying payment 107,893.41
Total 200,000.00 107,893.41 200,000.00
Other notes:
30. Income tax expense
(1) Lists of income tax expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 1,848,553.62 1,789,084.28
Deferred income tax expense 192,636.63
Total 1,848,553.62 1,981,720.91
(2) Adjustment process of accounting profit and income tax expense:
Unit: RMB
Item Reporting Period
Total profits 208,969.51
105
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Current income tax expense accounted by tax and relevant
52,242.38
regulations
Influence of deductible temporary difference or deductible losses
1,004,113.04
of deferred income tax assets derecognized in Reporting Period.
Others 792,198.20
Income tax expense 1,848,553.62
Other notes:
31. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities:
Unit: RMB
Item Reporting Period Same period of last year
Other intercourse fund 612,825,000.00 266,557,661.33
Amount related business activities 80,230.54 1,071,079.31
Total 612,905,230.54 267,628,740.64
Note to other cash received relevant to operating activities:
(2) Other cash paid relevant to operating activities:
Unit: RMB
Item Reporting Period Same period of last year
Other intercourse fund 604,410,000.00 227,129,583.29
Audit intermediary fees, etc 800,000.00 2,367,050.00
Amount related business activities 3,367,429.24 3,584,023.25
Total 608,577,429.24 233,080,656.54
Note to other cash paid relevant to operating activities:
32. Supplemental information for Cash Flow Statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit -1,639,584.11 15,797,948.56
Add: Provision for impairment of assets -653,029.98
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Depreciation of fixed assets, of oil-gas
1,918,926.88 1,339,870.53
assets, of productive biological assets
Amortization of intangible assets 336,594.12 138,631.92
Losses from variation of fair value (gains:
148.00
negative)
Financial cost (gains: negative) -66.00
Investment loss (gains: negative) 1,522.94 -14,284,601.42
Decrease in deferred income tax assets
163,257.50
(gains: negative)
Decrease in inventory (gains: negative) -7,203,140.64 -33,226,462.65
Decrease in accounts receivable from
481,536,676.02 191,027,506.09
operating activities (gains: negative)
Increase in payables from operating
-471,157,114.26 -329,348,354.13
activities (decrease: negative)
Others 194,723,804.92
Net cash flows generated from operating
3,793,814.95 25,678,719.34
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase in cash and cash equivalents: -- --
Closing balance of cash 303,874,987.30 105,854,471.17
Less: Opening balance of cash 301,471,305.21 16,669,591.58
Net increase in cash and cash equivalents 2,403,682.09 89,184,879.59
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 303,874,987.30 301,471,305.21
Including: Cash on hand 1,208,935.64 752,347.56
Bank deposit on demand 302,636,688.39 105,075,729.52
Other monetary funds on demand 29,363.27 26,394.09
III. Closing balance of cash and cash
303,874,987.30 301,471,305.21
equivalents
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
33. The assets with the ownership or use right restricted
Unit: RMB
Item Closing book value Restricted reason
Fixed assets 21,493,834.99 External guaranty
Intangible assets 9,494,052.68 External guaranty
Total 30,987,887.67 --
Other notes:
34. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Including: USD 25.66 6.6312 170.16
HKD 4,003.48 0.85467 3,421.66
Including: USD 1,216,088.46 6.6312 8,064,125.80
Other accounts receivable
Including: USD 20,000.00 6.6312 132,624.00
EUR
HKD 55,780.00 0.85467 47,673.49
Other notes:
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen Rieys
Industrial Co., Shenzhen Shenzhen Trading 90.00% Set-up
Ltd.
Puning Tianhe
Manufacturing
Garment Puning Puning 75.00% 25.00% Set-up
industry
Manufacturing
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Factory Co., Ltd.
Tianrui (HK)
Hong Kong Hong Kong Trading 100.00% Combination
Trading Co., Ltd.
CHINESE GOLD Sale of gold and
Shenzhen Shenzhen 51.00% Combination
NOBILITY jewelry
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
(2) Significant not wholly owned subsidiary
Unit: RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Shenzhen Rieys
10.00% -48,856.23 3,959,967.49
Industrial Co., Ltd.
CHINESE GOLD
49.00% 2,717,373.83 32,066,261.06
NOBILITY
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB
Closing balance Opening balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Shenzhe
n Rieys
38,469,2 1,550,30 40,019,5 419,919. 419,919. 70,145,6 1,723,46 71,869,1 31,780,8 31,780,8
Industria 0.00 0.00
88.45 5.70 94.15 22 22 37.20 4.38 01.58 64.41 64.41
l Co.,
Ltd.
CHINES
61,246,3 156,551. 61,402,9 -4,038,4 -4,038,4 55,530,8 163,654. 55,694,4 -4,201,2 -4,201,2
E GOLD 0.00 0.00
97.04 29 48.33 00.76 00.76 23.27 25 77.52 10.71 10.71
NOBILI
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
TY
Unit: RMB
Reporting Period Same period of last year
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Shenzhen
Rieys -49,947,048.3 51,729,179.2
-488,562.24 -488,562.24 -2,544,769.93 -2,544,769.93
Industrial 4 6
Co., Ltd.
CHINESE
200,186,975. 326,334,869. -50,445,401.2
GOLD 5,545,660.86 5,545,660.86 -645,785.99 5,576,755.47 5,576,755.47
70 41 4
NOBILITY
Other notes:
IX. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
A 403, Floor 4 of
Shenzhen Light industrial
Shenghengchang factory building,
Trading 9800 36.99% 36.99%
Huifu Industrial Co., Nanshan Avenue,
Ltd. Nanshan District,
Shenzhen
Notes: Information on the parent company:
The ultimate controller of the enterprise is Chen Hongcheng
Other notes:
No such case in Reporting Period
2. Subsidiaries of the Company
See details to Notes VIII. 1. Equity in subsidiary.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
3. Information on other related parties of the Company
Name Relationship
Shareholder holding 10.68% stake of the Company, affiliate
Shenzhen Rishen Investment Co., Ltd.
controlled under Chen Hongcheng’s family
Shareholder holding 3.81% stake of the Company, affiliate
Shenzhen Lianhua Huiren Industrial Co., Ltd.
controlled under Chen Hongcheng’s family
Chen Xuewen Direct relatives of Cheng Hongcheng
Ding Lihong Board chairman of the Company
Vice-Board chairman of the Company, relative of Cheng
Chen Hongcheng Hongcheng, and he is the legal representative of parent company
and Shenzhen Rishen Investment Co., Ltd.
Other notes:
4. List of related-party transactions
(1) Rewards for the key management personnel
Unit: RMB
Item Reporting Period Same period of last year
Rewards for the key management
253,000.00 240,000.00
personnel
5. Receivables and payables of related parties
(1) Payables
Unit: RMB
Name o f item Related party Closing book balance Opening book balance
Shenzhen Rishen Investment
Intercourse funds 3,160,000.00 450,000.00
Co., Ltd.
Note: Where a related transaction is settled in net amount upon agreement, the amounts payable to related parties may be stated after
the offset.
X. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of 30 June 2016, there was no significant commitment or contingency in the Company.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
2. Contingency
(1) Significant contingency at balance sheet date
(1) Possible liabilities formed for providing debt guarantee for other institutions and their financial
impacts
1) On 14 Apr. 2014 the Company mortgaged its real estate (the mortgaged property assessment
value was RMB39.43 million), for Puning Yanlilai Trading Co., Ltd. and Jieyang RongCheng
sub-branch of The Industrial And Commercial Bank of China Co., Ltd. signing Maximum amount
mortgage contract, the Maximum amount mortgage contract was: Maximum amount mortgage in
2014 NO. 3943 of RongCheng sub-branch. The secured principle credit was from 14 April 2014 to
14 April 2019. Puning Yanlilai Trading Co., Ltd. signed RMB24 million loan contract with Jieyang
RongCheng sub-branch of The Industrial and Commercial Bank of China Co., Ltd. on 13 July 2015,
the term were12 months
2) The Company mortgaged its real estate (The mortgaged property assessment value was
RMB36.32 million) for Huafengqiang Trade Co., Ltd. and the Jieyang RongCheng sub-branch of
The Industrial and Commercial Bank of China Co., Ltd. signing Maximum amount mortgage
contract, the Maximum amount mortgage contract was: Maximum amount mortgage in 2014 NO.
3632 of RongCheng sub-branch. The secured principle credit was from 11 November 2014 to 11
November 2019 Huafengqiang Trade Co., Ltd. signed RMB17,000,000.00 loan contract with
Jieyang RongCheng sub-branch of The Industrial and Commercial Bank of China Co., Ltd. which
was the guarantee for the Company. The borrowing period was for 12 months.
As of 30 June 2016, the Company provide guarantee for non-related party were as followed:
Entity Events Amount involved Period Notes
(RMB’0,000)
Puning Yanlilai Trading Co., Ltd. Bank loan pledge 2,400.00 13 July 2015 to 13 July
2016
Huafengqiang Trade Co., Ltd. Bank loan pledge 1,700.00 17 November 2015 to 17
November 2016
Total 4,100.00
(2) As of 30 June 2016, there was no pending litigation, external guaranty or contingency in the Company.
As of 30 June 2016, except for the above contingency, there was no significant contingency to disclose in the
Company.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
XI. Other significant events
1. Other
On 5 January 2015, the Company sign a sale of asset agreement with Guangdong Taihengyuan
Industrial Co., Ltd., the Company sold assets such as the industrial land, workshop located in
Lianyun Village, Junbu Town, Puning (of which: workshop premises building area 31,451.93
square meters, the land use right area of the workshop took in was 81,787.00 square meters) the
certificate No. of the land respectively was PFGY (2006) No. 01371, YDFDQZPZGZ No.059,
YDFDQZPZGZ No. 060 and YDFDQZPZGZ No. 061.
As of 30 June 2016, except for the aforesaid event, there was no significant event in the Company.
XII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1)Accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with insignificant
single amount for 4,608,27 4,608,27 4,608,2 4,608,276
100.00% 100.00% 0.00 100.00% 100.00% 0.00
which bad debt 6.88 6.88 76.88 .88
provision separately
accrued
4,608,27 4,608,27 4,608,2 4,608,276
Total 100.00% 100.00% 0.00 100.00% 100.00% 0.00
6.88 6.88 76.88 .88
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable Closing balance
(classified by units) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Long-term credit, the
Capital airport 21,713.00 21,713.00 100.00% Company believe it
irrecoverable
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Long-term credit, the
Ningbo Industrial and
26,354.45 26,354.45 100.00% Company believe it
Commercial Bureau
irrecoverable
Long-term credit, the
Chen Shunqin 335,904.80 335,904.80 100.00% Company believe it
irrecoverable
Long-term credit, the
Hong Kong Jinhua
4,224,304.63 4,224,304.63 100.00% Company believe it
Trading Company
irrecoverable
Total 4,608,276.88 4,608,276.88 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Top five of account receivable of closing balance collected by arrears party
Name of the entity Amount Bad debt provision Proportion
%
Capital airport 21,713.00 21,713.00 0.47
Ningbo Industrial and 26,354.45 26,354.45 0.57
Commercial Bureau
Chen Shunqin 335,904.80 335,904.80 7.29
Hong Kong Jinhua Trading 4,224,304.63 4,224,304.63 91.67
Company
Total 4,608,276.88 4,608,276.88 100.00
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
114
Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Other accounts
receivable with
insignificant single 113,758, 2,931,60 110,827,1 67,859, 2,931,608 64,927,561.
96.74% 2.58% 92.98% 4.32%
amount for which 794.62 8.20 86.42 169.28 .20 08
bad debt provision
separately accrued
Other accounts
receivable withdrawn
2,356,39 1,468,12 888,274.2 3,648,1 1,468,120 2,180,004.9
bad debt provision 2.00% 62.30% 5.00% 40.24%
4.77 0.51 6 25.48 .51 7
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 1,478,22 1,478,22 1,478,2 1,478,227
1.26% 100.00% 0.00 2.02% 100.00%
amount for which 7.36 7.36 27.36 .36
bad debt provision
separately accrued
117,593, 5,877,95 111,715,4 72,985, 5,877,956 67,107,566.
Total 100.00% 5.00% 100.00% 8.05%
416.75 6.07 60.68 522.12 .07 05
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Included in consolidated
Tianrui (HK) Trading Co., related party did not
64,927,561.08
Ltd. withdraw bad debt
provision
Included in consolidated
Puning Tianhe Garment
related party did not
Manufacturing Factory 45,899,625.34
withdraw bad debt
Co., Ltd.
provision
Long-term credit, the
Refund of tax for export
2,331,608.20 2,331,608.20 100.00% Company believe it
receivable
irrecoverable
Long-term credit, the
Shenzhen Zhao Tong
600,000.00 600,000.00 100.00% Company believe it
Investment Co., Ltd.
irrecoverable
Total 113,758,794.62 2,931,608.20 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 414,347.38 34,110.48 8.23%
Subtotal within 1 year 414,347.38 34,110.48 8.23%
1 to 2 years 8,662.40 1,329.87 15.35%
2 to 3 years 894,970.08 447,385.07 49.99%
Over 3 years 1,038,414.91 985,295.09 94.88%
Total 2,356,394.77 1,468,120.51 62.30%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
Fund of related party 110,827,186.42 64,927,561.08
Intercourse funds 3,758,084.43 4,997,439.43
Tax 2,331,608.20 2,331,608.20
Payment on behalf 676,537.70 728,913.41
Total 117,593,416.75 72,985,522.12
(3) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
Tianrui (HK) Trading Intercourse of
64,927,561.08 Over 5 years 55.21%
Co., Ltd. related party
Puning Tianhe
Garment Intercourse of
45,899,625.34 Within 1 year 39.03%
Manufacturing related party
Factory Co., Ltd.
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Refund of tax for
Tax 2,331,608.20 Over 5 years 1.98% 2,331,608.20
export receivable
Guangdong Yuanfeng
Intercourse funds 700,000.00 Over 5 years 0.60% 700,000.00
Trade Co., Ltd.
Shenzhen Zhao Tong
Intercourse funds 600,000.00 Over 5 years 0.51% 600,000.00
Investment Co., Ltd.
Total -- 114,458,794.62 -- 97.33% 3,631,608.20
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment to the
126,712,508.68 126,712,508.68 126,712,508.68 126,712,508.68
subsidiary
Total 126,712,508.68 126,712,508.68 126,712,508.68 126,712,508.68
(1) Investment to the subsidiary
Unit: RMB
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
Reporting Period
Shenzhen Rieys
45,000,000.00 45,000,000.00
Industrial Co., Ltd.
Puning Tianhe
Garment
51,712,500.42 51,712,500.42
Manufacturing
Factory Co., Ltd.
Tianrui (HK)
8.26 8.26
Trading Co., Ltd.
Puning Hengda
Real Estate
Development Co.,
Ltd.
CHINESE GOLD
30,000,000.00 30,000,000.00
NOBILITY
Total 126,712,508.68 126,712,508.68
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
4. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
38,085,000.00
accounted by cost method
Investment income arising from disposal of
48,123,800.00
long-term equity investments
Investment income received from disposal of
financial assets measured by fair value and
11,021,123.57
the changes be included in the current profits
and losses during holding period
Total 97,229,923.57
XIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Gain/loss from change of fair value of
transactional assets and liabilities, and
investment gains from disposal of Disposal of tradable financial assets
transactional financial assets and liabilities -1,522.94 recognized investment losses in Reporting
and available-for-sale financial assets, other Period
than valid hedging related to the Company’s
common businesses
Other non-operating income and expenses
-199,999.56
other than the above
Less: Income tax effects -50,380.63
Minority interests effects -114.06
Total -151,027.81 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
2. Return on equity and earnings per share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
-1.19% -0.01 -0.01
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
-1.15% -0.0130 -0.0130
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Semi-annual Report 2016
Section X Documents Available for Reference
I The financial statements with the signatures and seals of the legal representative, the CFO and the accounting
head; and
II The originals of the company announcements and documents disclosed on the CSRC-designated newspapers
during the Reporting Period.
(The Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.)
120
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