Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Chongqing Jianshe Motorcycle Co., Ltd.
The Financial Report 2017
2017-056
July 2017
1
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The 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: Chongqing Jianshe Motorcycle Co., Ltd.
June 30, 2017
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 295,278,417.88 514,414,822.57
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations accounted into
current income account
Derivative financial assets
Bill receivable 62,644,057.09 14,907,890.35
Account receivable 255,105,669.86 255,587,439.92
Prepayments 8,227,304.05 10,891,933.02
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 8,142,426.73 8,579,890.08
Repurchasing of financial assets
Inventories 154,692,361.34 201,207,030.54
Assets held for sales
Non-current asset due in 1 year
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Other current asset 1,836,709.63 1,734,063.70
Total of current assets 785,926,946.58 1,007,323,070.18
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 81,252,694.41 83,178,112.31
Property investment 112,986,190.01 115,326,025.61
Fixed assets 315,059,363.89 325,843,861.71
Construction in progress 4,176,362.84 2,438,832.43
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 11,540,143.86 11,696,305.26
R & D petrol
Goodwill
Long-germ expenses to be amortized 1,744,336.65 2,471,588.65
Differed income tax asset 1,816,875.69 1,816,875.69
Other non-current asset 6,908,228.33 9,240,209.19
Total of non-current assets 535,484,195.68 552,011,810.85
Total of assets 1,321,411,142.26 1,559,334,881.03
Current liabilities
Short-term loans 284,500,000.00 224,500,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with variations accounted
into current income account
Derivative financial liabilities
Bill payable 425,710,000.00 718,560,000.00
Account payable 190,022,762.43 193,368,485.45
Advance payment 2,529,303.47 9,126,126.31
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 3,800,016.29 2,629,812.54
Tax payable 16,443,532.01 16,163,190.70
Interest payable
Dividend payable
Other account payable 39,280,129.46 40,693,888.64
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 53,400,000.00 36,100,000.00
Other current liability
Total of current liability 1,015,685,743.66 1,241,141,503.64
Non-current liabilities：
Long-term loan 24,490,000.00 48,590,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s remuneration
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 24,490,000.00 48,590,000.00
Total of liability 1,040,175,743.66 1,289,731,503.64
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
4
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Capital reserves 958,575,094.29 958,575,094.29
Less：Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Undistributed profit -923,834,683.28 -935,253,002.64
Total of owner’s equity belong to the parent company 279,801,411.01 268,383,091.65
Minority shareholders’ equity 1,433,987.59 1,220,285.74
Total of owners’ equity 281,235,398.60 269,603,377.39
Total of liabilities and owners’ equity 1,321,411,142.26 1,559,334,881.03
Legal Representative:Lv Hongxian
Person in charge of accounting：Xue Gangyi
Accounting Dept Leader: Niu Yanli
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 146,182,096.26 290,491,337.89
Financial assets measured at fair value with variations accounted
into current income account
Derivative financial assets
Bill receivable
Account receivable 4,307.10 4,307.10
Prepayments 3,140,497.04 1,182,599.45
Interest receivable
Dividend receivable
Other account receivable 5,281,967.85 5,021,347.04
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 131,046.64
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Total of current assets 154,608,868.25 296,830,638.12
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 249,412,694.41 251,338,112.31
Property investment 112,986,190.01 115,326,025.61
Fixed assets 67,114,422.76 70,991,009.78
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset
Total of non-current assets 429,513,307.18 437,655,147.70
Total of assets 584,122,175.43 734,485,785.82
Current liabilities
Short-term loans
Financial liabilities measured at fair value with variations
accounted into current income account
Derivative financial liabilities
Bill payable 142,850,000.00
Account payable 137,243,657.31 147,819,149.98
Advance payment 180,083.38 180,083.38
Employees’ wage payable 554,830.16 14,467.08
Tax payable 16,267,804.23 15,945,044.76
Interest payable
Dividend payable
Other account payable 234,772,026.24 240,371,017.71
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 389,018,401.32 547,179,762.91
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities
Total of liability 389,018,401.32 547,179,762.91
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 958,575,094.29 958,575,094.29
Less：Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Undistributed profit -1,008,532,320.18 -1,016,330,071.38
Total of owners’ equity 195,103,774.11 187,306,022.91
Total of liabilities and owners’ equity 584,122,175.43 734,485,785.82
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
3.Consolidated Income Statement
In RMB
Same period of the previous
Items Report period
year
I. Income from the key business 550,074,257.84 468,177,291.88
Incl：Business income 550,074,257.84 468,177,291.88
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 540,112,621.78 460,454,082.01
Incl：Business cost 456,540,934.80 394,452,147.33
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4,459,150.00 1,499,484.01
Sales expense 12,358,836.00 12,291,404.24
Administrative expense 46,644,017.51 36,444,955.02
Financial expenses 18,617,069.49 16,021,092.40
Asset impairment loss 1,492,613.98 -255,000.99
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 1,994,582.10 1,216,436.70
Incl: investment gains from affiliates 1,994,582.10 1,216,436.70
Gains from currency exchange（“-”for loss）
Other income
III. Operational profit（“-”for loss） 11,956,218.16 8,939,646.57
Add ：Non-operational income 443,547.75 459,509.47
Including：Income from disposal of non-current assets 200,962.58
Less：Non business expenses 167,158.10 318,470.87
Incl：Loss from disposal of non-current assets 142,770.96
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
IV.Total profit(“-”for loss) 12,232,607.81 9,080,685.17
Less：Income tax expenses 600,586.60 300,493.66
V. Net profit 11,632,021.21 8,780,191.51
Net profit attributable to the owners of parent company 11,418,319.36 8,502,845.42
Minority shareholders’ equity 213,701.85 277,346.09
VI. Other comprehensive income
Net of profit of other comprehensive income attributable to owners of t
he parent company.
（I）Other comprehensive income items that will not be reclassified
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net
assets
2.Other comprehensive income under the equity method investee can n
ot be reclassified into profit or loss.
(II)Other comprehensive income that will be reclassified into profit or l
oss.
1.Other comprehensive income under the equity method investee can b
e reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale financia
l assets
3.Held-to-maturity investments reclassified to gains and losses of availa
ble for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
7.Net of profit of other comprehensive income attributable to Minority
shareholders’ equity
VII. Total comprehensive income 11,632,021.21 8,780,191.51
Total comprehensive income attributable to the owner of the parent
11,418,319.36 8,502,845.42
company
Total comprehensive income attributable minority shareholders 213,701.85 277,346.09
VIII. Earnings per share
（I）Basic earnings per share 0.0957 0.0712
(II)Diluted earnings per share 0.0957 0.0712
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative:Lv Hongxian
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Person in charge of accounting：Xue Gangyi
Accounting Dept Leader: Niu Yanli
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 339,527,118.70 336,824,318.43
Incl：Business cost 305,125,226.46 313,550,271.27
Business tax and surcharge 841,394.14 241,560.44
Sales expense
Administrative expense 22,238,575.73 10,596,697.69
Financial expenses 5,993,807.50 4,913,633.54
Asset impairment loss
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 1,994,582.10 1,216,436.70
Incl: investment gains from affiliates 1,994,582.10 1,216,436.70
Other income
II. Operational profit（“-”for loss） 7,322,696.97 8,738,592.19
Add ：Non-operational income 207,862.58
Including：Income from disposal of non-current assets
Less：Non business expenses -267,191.65 26,696.96
Incl：Loss from disposal of non-current assets 142,770.96
III.Total profit(“-”for loss) 7,797,751.20 8,711,895.23
Less：Income tax expenses
IV. Net profit（“-”for net loss） 7,797,751.20 8,711,895.23
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that will not be reclassified
into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net
assets
2.Other comprehensive income under the equity method investee can n
ot be reclassified into profit or loss.
(II)Other comprehensive income that will be reclassified into profit or l
oss.
10
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
1.Other comprehensive income under the equity method investee can b
e reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale financia
l assets
3.Held-to-maturity investments reclassified to gains and losses of availa
ble for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
VI. Total comprehensive income 7,797,751.20 8,711,895.23
VII. Earnings per share：
（I）Basic earnings per share 0.0653 0.0730
(II)Diluted earnings per share 0.0653 0.0730
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 233,913,811.59 238,598,416.24
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of amount from disposal financial assets that
measured by fair value and with variation reckoned into current
gains/losses
Net increase of inter-bank fund received
Net increase of trade financial asset disposal
Net increase of repurchasing business
Tax returned 4,086,887.50 3,714,512.19
Other cash received from business operation 8,555,466.77 4,572,178.51
Sub-total of cash inflow 246,556,165.86 246,885,106.94
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Cash paid for purchasing of merchandise and services 110,250,299.46 138,732,260.06
Net increase of client trade and advance
Net increase of savings n central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 25,208,850.06 27,812,463.74
Taxes paid 17,335,347.98 9,112,317.40
Other cash paid for business activities 30,626,576.45 9,288,327.95
Sub-total of cash outflow from business activities 183,421,073.95 184,945,369.15
Cash flow generated by business operation, net 63,135,091.91 61,939,737.79
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 4,000,000.00 3,400,000.00
Net cash retrieved from disposal of fixed assets, intangible assets,
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 4,000,000.00 3,400,000.00
Cash paid for construction of
fixed assets, intangible assets 5,343,707.62 12,945,403.02
and other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 5,343,707.62 12,945,403.02
Net cash flow generated by investment -1,343,707.62 -9,545,403.02
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from minor shareholders
Cash received as loans 222,500,000.00
Cash received from bond placing
Other financing –related ash received 548,004,868.94 1,338,108,850.64
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Sub-total of cash inflow from financing activities 548,004,868.94 1,560,608,850.64
Cash to repay debts 26,300,000.00 412,800,000.00
Cash paid as dividend, profit, or interests 22,593,991.30 17,899,685.36
Incl: Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 667,171,141.01 1,089,473,618.24
Sub-total of cash outflow due to financing activities 716,065,132.31 1,520,173,303.60
Net cash flow generated by financing -168,060,263.37 40,435,547.04
IV. Influence of exchange rate alternation on cash and cash
0
equivalents
V.Net increase of cash and cash equivalents -106,268,879.08 92,829,881.81
Add: balance of cash and cash equivalents at the beginning of term 273,768,758.46 23,643,515.81
VI ..Balance of cash and cash equivalents at the end of term 167,499,879.38 116,473,397.62
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 132,211,763.35 140,584,159.57
Tax returned
Other cash received from business operation 286,365.25 162,250.98
Sub-total of cash inflow 132,498,128.60 140,746,410.55
Cash paid for purchasing of merchandise and services 81,048,957.61 81,695,480.33
Cash paid to staffs or paid for staffs 9,247,217.96 13,993,730.48
Taxes paid 5,726,931.81 4,961,700.84
Other cash paid for business activities 1,982,919.53 984,106.09
Sub-total of cash outflow from business activities 98,006,026.91 101,635,017.74
Cash flow generated by business operation, net 34,492,101.69 39,111,392.81
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 4,000,000.00 3,400,000.00
Net cash retrieved from disposal of fixed assets, intangible assets,
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Sub-total of cash inflow due to investment activities 4,000,000.00 3,400,000.00
Cash paid for construction of
fixed assets, intangible assets 40,000.00 450,000.00
and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 40,000.00 450,000.00
Net cash flow generated by investment 3,960,000.00 2,950,000.00
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 202,500,000.00
Cash received from bond placing
Other financing –related ash received 383,791,136.86 1,538,413,233.34
Sub-total of cash inflow from financing activities 383,791,136.86 1,740,913,233.34
Cash to repay debts 379,300,000.00
Cash paid as dividend, profit, or interests 8,540,566.36 5,375,548.25
Other cash paid for financing activities 515,152,973.17 1,295,397,905.00
Sub-total of cash outflow due to financing activities 523,693,539.53 1,680,073,453.25
Net cash flow generated by financing -139,902,402.67 60,839,780.09
IV. Influence of exchange rate alternation on cash and cash
equivalents
V.Net increase of cash and cash equivalents -101,450,300.98 102,901,172.90
Add: balance of cash and cash equivalents at the beginning of term 247,582,579.15 4,486,524.01
VI ..Balance of cash and cash equivalents at the end of term 146,132,278.17 107,387,696.91
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity Minor
Other Commo Total of
Items instrusment
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
reserves hensive reserves provisio equity
l red Sustai Other in stock reserve profit equity
Income n
stock nable
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
debt
119,37 -935,25
I.Balance at the 958,575 125,686 1,220,2 269,603
5,000. 3,002.6
end of last year ,094.29 ,000.00 85.74 ,377.39
00 4
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 -935,25
958,575 125,686 1,220,2 269,603
beginning of 5,000. 3,002.6
,094.29 ,000.00 85.74 ,377.39
current year 00 4
III.Changed in the 11,418, 213,701 11,632,
current year 319.36 .85 021.21
（1）Total
11,418, 213,701 11,632,
comprehensive
319.36 .85 021.21
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
15
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -923,83
IV. Balance at the 958,575 125,686 1,433,9 281,235
5,000. 4,683.2
end of this term ,094.29 ,000.00 87.59 ,398.60
00 8
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Less: Speciali Attribut shareho
share Capital Compre Surplus n risk owners’
prefer Shares zed able lders’
Capita Sustai reserves hensive reserves provisio equity
red Other in stock reserve profit equity
nable Income n
stock
debt
16
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
119,37 -947,52
I.Balance at the 958,575 125,686 781,632 256,897
5,000. 0,008.7
end of last year ,094.29 ,000.00 .77 ,718.28
00 8
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 -947,52
958,575 125,686 781,632 256,897
beginning of 5,000. 0,008.7
,094.29 ,000.00 .77 ,718.28
current year 00 8
III.Changed in the 12,267, 438,652 12,705,
current year 006.14 .97 659.11
（1）Total
12,267, 438,652 12,705,
comprehensive
006.14 .97 659.11
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
17
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -935,25
IV. Balance at the 958,575 125,686 1,220,2 269,603
5,000. 3,002.6
end of this term ,094.29 ,000.00 85.74 ,377.39
00 4
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
cpaital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,016,3
119,375, 958,575,0 125,686,0 187,306,0
30,071.
I.Balance at the 000.00 94.29 00.00 22.91
end of last year 38
Add: Change of
18
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,016,3
119,375, 958,575,0 125,686,0 187,306,0
beginning of 30,071.
000.00 94.29 00.00 22.91
current year 38
III.Changed in the 7,797,7 7,797,751
current year 51.20 .20
（1）Total
7,797,7 7,797,751
comprehensive
51.20 .20
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
19
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
-1,008,5
IV. Balance at the 119,375, 958,575,0 125,686,0 195,103,7
32,320.
end of this term 000.00 94.29 00.00 74.11
18
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
Capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,015,1
119,375, 958,575,0 125,686,0 188,482,8
53,268.
I.Balance at the 000.00 94.29 00.00 25.30
end of last year 99
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,015,1
119,375, 958,575,0 125,686,0 188,482,8
beginning of 53,268.
000.00 94.29 00.00 25.30
current year 99
20
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
III.Changed in the -1,176,8 -1,176,80
current year 02.39 2.39
（1）Total
-1,176,8 -1,176,80
comprehensive
02.39 2.39
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
21
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
-1,016,3
IV. Balance at the 119,375, 958,575,0 125,686,0 187,306,0
30,071.
end of this term 000.00 94.29 00.00 22.91
38
III.Corporate information
Chongqing Jianshe Motorcycle Co., Ltd. (hereinafter referred to as the "Company", "Company" or "Chongqing
Jianshe Motorcycle ") was jointly set up in July 1995 by the Construction Industry (Group) Co., Ltd. and China
North Industries Shenzhen Corporation. The company now holds a unified social credit code for the
915000007474824231 business license, The Company was listed in July 1995 at the Shenzhen Stock Exchange.
The Company is engaged in the manufacturing industry.
As at December 31, 2016, the Company issued 119,375,000 shares in total and had the registered capital of
119,375,000. The registration place: NO.1, Jianshe Road Huaxi Industry Park, Banan District, Chongqing; the
headquarters address: Banan District, Chongqing Municipality. Legal representative: Li Huaguang. The main
business activities: research and development, processing, manufacturing and related technical services of
Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related technical services of
tooling (except for those subject to national special provisions) ; R & D, production and sales of motorcycle
engines; research , development and processing of mechanical and electrical products, home appliances,
bicycles, environmental protection product; imports, wholesale, retail, commission agency (except auction) of
similar products of these products. The parent company and the actual controller of the Company is China South
Industries Group Corporation, and the ultimate controller of the Company is the State-owned Assets Supervision
and Administration Commission (SASAC).
The disclosure of the financial statements was approved by the Board of Directors on August 25,2017.
As at June 30, 2017, the subsidiaries included in the scope of consolidated financial statements of the Company
are presented as set out below:
Name of the subsidiary
Chongqing Jianshe Automobile A/C Co., Ltd.
Shanghai Jianshe Motorcycle Co., Ltd.
See "Note 8 Change in the scope of consolidation" and "Note 9 Interests in other entities" for details of scope
consolidated financial statements and the change therein.
IV.Basis of preparation for financial statements
1.Basis of preparation
The Company prepares the financial statements on the basis of going concern, according to actual transactions and
events, the subsequently issued Accounting Standards for Business Enterprises – Application Guidelines, and the
Accounting Standards for Business Enterprises – Interpretations and other relevant provisions (hereinafter
collectively referred to as “Accounting Standards for Business Enterprises”), as well as Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial
Reports issued by China Securities Regulatory Commission.
2.Going concern
22
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
The Company was on a going concern basis in 12 months as of the end of the current reporting period and was not
affected by any material event having impact on the going concern.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
The disclosure as set out below cover the specific accounting policies and accounting estimates developed by the
Company in accordance with the actual production and management features. See "Note 3.11 Provision for bad
debts of accounts receivables, "Note 3.12 Inventories", "Note 3.16 Fixed assets", "Note 3.19 Intangible assets"
and "3.25 Revenues" for details.
1.Statements on Compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company’s financial position, operating results and cash
flows, etc. for the reporting period.
2.Accounting period
The accounting year is from January 1 to December 31.
3.Operating cycle
The Company has an operating cycle of 12 months.
4.Functional currency
The functional currency is Renminbi.
5.Accounting treatments of the combination of enterprises under common control and the combination of
enterprises not under the common control
Business combination under common control: The assets and liabilities acquired by the Company in a business
combination are stated at the book value of the assets and liabilities (including the goodwill arising from the
acquisition of the acquiree by the ultimate controller) of the acquiree on the combination date. The stock premium
in the capital reserve is adjusted according to the difference between the book value of net assets acquired through
combination and the book value of consideration paid for the combination (or total par value of shares issued). If
the stock premium in the capital reserves is insufficient to cover the difference, the remaining amount shall be
charged against retained earnings.
Combination of enterprises not under the common control: The assets paid and liabilities incurred or assumed by
the Company on the acquisition date for the business combination are measured at their fair values, and the
difference between the fair value and book value is charged to the current profit or loss. The Company shall
recognize the difference of the combination costs in excess of the fair value of the identifiable net assets acquired
from the acquiree as goodwill. The difference of the combination costs in short of the fair value of the identifiable
net assets acquired from the acquiree is charged to the current profit and loss after review.
The intermediary service charges incurred for audit, legal service, consulting services and other direct relevant
expenses are charged to the current profit and loss; the transaction costs incurred for issuance of equity securities
for business combination offest the equities.
6.Preparation of consolidated financial statements
1.Scope of consolidation
The scope of consolidated financial statements is determined on the basis of control, and all subsidiaries
(including the divisable portion of the investee under the control of the Company) are included in the consolidated
financial statements.
2.Combination procedures
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
The Company prepares the consolidated financial statements on the basis of the financial statements of itself and
its subsidiaries, according to other relevant information. When preparing the consolidated financial statements, the
Company regards the whole group as an accounting entity to reflect the overall financial position, operating
results and cash flow of the Group, in accordance with requirements of relevant accounting standards for the
recognition, measurement and presentation, on the basis of the uniform accounting policies.
The accounting polidies and accounting period adopted by the subsidiaries included in the scope of consolidated
financial statements are in line with those adopted by the Company. In case any disrepancy between the
accounting policies and accounting period adopted by the subsidiary and those adopted by the Company, the
adjustment will be made in light of the accounting policies and accounting period adopted by the Company, when
the consolidated financial statements are prepared.The financial statements of the subsidiary acquired through the
combination of enterprises not under common control are adjusted on the basis of the fair value of the identifiable
net assts on the acquisition date. The financial assets of the subsidiary acquired through the combination of
enterprises under the common control are adjusted on the basis of the book value of the assets and liabilities
(including the goodwill arising from the acquisition of such subsidiary by the ultimate controller) as stated in the
financial statements of the ultimate controller.
The owners' equities, current net profit or loss and current comprehensive income attributable to minority
shareholders are separately presented under the owners' equities item of the consolidated balance sheet, net profit
item and total comprehensive income item of the consolidated income statement, respectively. Where the current
losses attributable to minority shareholders of the subsidiary exceed the owners' equities attributable to the same at
the period beginning, the difference between them will offset the minority equity.
(1) Increase of the subsidiary or business
In case of increase of subsidiary or business as a result of combination of enterprises under common control
during the reporting period, the beginning amount stated in the consolidated balance sheet will be adjusted; the
income, expense and profit generated from the subsidiary or business from the beginning of the period of
combination to the end of reporting period will be included in the consolidated statement of cash flows, with the
adjustment made to the relevant items of the comparative statement, as if the reporting entity after the
combination still existed from the beginning of control of the ultimate controller.
Where the additional investment or other reason leads to the control over the investee under the common control,
all entities considered to take a part in the combination will be adjusted to the extent that they are in the current
status as they come to be under the control of the ultimate controller. The retained earnings or the current profit or
loss at the period beginning during the statement period are offset by equity investment held before the control
over the mergee is obtained, and the equity investments held before the control over the acquiree is obtained, and
the related profit or loss, other comprehensive income and change in other net assets that are recognized during
the period which starts on the later of the date when the original equities are obtained and the date when both
merger and mergee are under the common control and ends on the combination date, respectively.
In case of increase of subsidiary or business during the reporting period as a result of combination of enterprises
not under the common control, the beginning amount stated in the consolidated balance sheet will not be adjusted;
the income, expense and profit generated from such subsidiary or business from the acquisition date to the end of
reporting period will be included in the consolidated income statement; and the cash flow generated from such
subsidiary or business from the acquisition date to the end of reporting period will be incldued in the consolidated
statement of cash flows.
Where the additional investment or other reason leads to the control over the investee not under the common
control, the equities of the mergee held before the acquisition date will be remeasured at the fair value of such
equities on the acquisition date, and the difference between the fair value and book value thereof will be charged
to the current investment income. Where the equities of the acquiree held before the acquisition date involves the
change in other comprehensive income or in other owners' equities other than the net profit or loss, other
comprehensive income and profit distribution, the change in other comprehensive income or other owners'
equities will be converted into tthe investment income for the period covering the acquisition date, except for the
other comprehensive income arising from the change on remeasurement of the net liabilities or net assets under
the defined benefit plan by the investee.
(2) Disposal of the subsidiary or business
a. General method of treatment
In case of treatment of subsidiary or business during the reporting, the the income, expense and profit generated
24
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
from such subsidiary or business from the period beginning to the disposal date will be included in the
consolidated income statement; and the cash flow generated from such subsidiary or business from the period
beginning to the disposal date will be incldued in the consolidated statement of cash flows.
Where the control over the investee is lost due to the disposal of some of equity investments or other reasons, the
remaining equity investment after disposal will be re-measured at fair value on the day when the control is
lost.The sum of the consideration received for disposal of equities and the fair value of the remaining equities, less
the difference between the net assets of the former subsidiary of which the continuous calculation starts from the
acquisition date or combination date and the goodwill, should be charged to the investment income for the period
during which the control is lost.Changes in other comprehensive income related to the equity investment in the
former subsidiary or in owners' equities other than the net profit or loss, other comprehensive income and profit
distribution are converted into the current investment income upon the loss of control, except for the other
comprehensive income arising from the change on remeasurement of the net liabilities or net assets under the
defined benefit plan by the investee.
b. Disposal of subsidiary by stages
In case of disposal of investment in the equity of subsidiary by stages through a number of transactions, such
transactions will be treated as a package deal, provided that the terms and conditions on and the economic effect
of the equity investment in the subsidiary meet one of more of the following conditions:
ⅰ. These transactions are entered into considering their effects are considered;
ⅱ. These transactions can lead to a complete business result as a whole;
ⅲ. The occurrence of a transaction depends on the occurrence of at least one of others; and
ⅳ. A single transaction is deemed uneconomical, but the economical efficiency can be seen when it is put
together with other transactions;
Where the transctions involved in the disposal of the equity investment in the subsidiary are package deals, the
Company will treat each transaction as the one involved in the disposal of the subsidiary with loss of control;
however, the difference between the consideration for each disposal before the loss of control and the net assets of
such subsidiary corresponding to the disposal of investment will be recognized as other comprehensive income in
the consolidated financial statements, and will be transferred to the loss or profit for the period during which the
control is lost, upon the loss of control.
Where the transctions involved in the disposal of the equity investment in the subsidiary are not package deals,
these transactions will be treated according to the policies on the disposal of part of the equity investments in the
subsidiary without loss of control, before the loss of control; or treated in the general treatment method of disposa
of subsidiary, upon the loss of control.
(3) Acquisition of minority equity of subsidiary
The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference
between the long-term equity investment newly acquired as a result of acquisition of minority equity and the net
assets of the subsidiary attributable to the Company, of which the continuous calculation starts from the
acquisition date (or combination date); and the retained earnings will be adjusted if the stock premium under the
capital reserve is insufficient as to the offset.
(4) Disposal of part of the equity investments in the subsidiary without loss of control
The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference
between the consideration received for the disposal of part of the long-term equity investments in the subsidiary
without loss of control and the net assets of the subsidiary attributable to the Company, of which the continuous
calculation starts from the acquisition date (or combination date); and the retained earnings will be adjusted if the
stock premium under the capital reserve is insufficient as to the offset.
25
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
7.Classification and accounting treatment of joint venture arrangement
Joint venture arrangement is classified into joint operation and joint ventures.
In terms of the joint operation, the Company is the joint venturer under the joint venture arrangement and is
entitled to the assets and bear the liabilities under such arrangement.
The Company recognizes the following items in relation with the share of interest in the joint operation, and
conducts the accounting treatment of the the said items according to the provisions of Accounting Standards for
Enterprises:
(1) Recognition of the assets held separately by the Company and of the assets held by the Company jointly
others in proportion;
(2) Recognition of the liabilities separately borne by the Company and of the liabilities borne by the Company
jointly others in proportion;
(3) Recognition of proportioned income generated attributable to the Company as one of the co-operators;
(4) Recognition of income generated fattributible to the Company as one of the co-sellers;
(5) Recognition of the expenses incurred separately and the proportioned expenses incurred by the Company as
one of the co-opeartors.
See "Note 3.14 Long-term equity investments" for detailed of accounting policies on the investment
of the Company in joint ventures.
8.Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to cash on hand and deposits of
that are readily available for payment. And the term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
9.Foreign currency business and foreign currency translation
1.Foreign currency business:
Transactions denominated in foreign currency are translated into RMB for accounting purpose at the spot
exchange rate on the day when the transaction occurs.
The balances of foreign currency monetary items are converted at the spot exchange rate prevailing on the balance
sheet date. The exchange differences arising from the conversion, other than those arising from specific-purpose
borrowings in foreign currencies related to acquisition and construction of assets eligible for capitalization, which
shall be measured in accordance with principle of capitalization of the borrowing costs, shall be charged to the
current profit or loss.
2.Translation of financial statement denominated in foreign currency
The asset and liability items in the balance sheet shall be converted at the spot exchange rates prevailing on the
balance sheet date. Except retained profit, the owners’ equity items shall be converted at the spot exchange rates
on the occurrence date.The income and expense items in the income statement shall be converted at the spot
exchange rates which are determined by systematic and reasonable methods and similar to the spot exchange rate
on the date of occurrence of transaction.
On disposal of a foreign operation, the difference arising from the converstion of financial statements
denominated in foreign currency and related to such foreign operation should be transferred to the current
gain or loss on disposal, from the owners' equities.
26
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
10.Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1 Classification of financial instruments
Upon the initial recognition, fFinancial assets and liabilities are classified into the following categories according
to the purpose of acquisition: the financial assets or financial liabilities measured at fair value through current
profit and loss, including financial assets or financial liabilities held for trading (and those financial assets or
financial liabilities directly designated under this category), held-to-maturity investments, receivables, financial
assets available for sale and other financial liabilities, etc.
2.Recognition and measurement of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) are initially stated at fair values when acquired (deducting cash dividends
that have been declared but not distributed and bond interests that have matured but not been drawn), and relevant
transaction expenses are included in the current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
Upon the disposal, the difference between the fair value and initial book-entry value is recognized as investment
income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values when acquired (deducting cash dividends that
have been declared but not distributed and bond interests that have matured but not been drawn).
The interest income is calculated and recognized at amortized cost and effective interest rates (or the nominal
interest rate, if there is small difference between the effective interest rate and the nominal interest rate) and is
charged to the investment income. The effective interest rates are determined upon acquisition and remain
unchanged during the expected remaining period, or a shorter period if applicable.
Difference between the proceeds and the book value of the investment is recognized as investment income upon
disposal.
(3) Accounts receivable
For creditor’s rights receivable arising from external selling commodities or providing service by the Company
and other creditor's rights in respect of liability instruments of other enterprises (excluding those quoted in an
active market) held by the Company, including accounts receivable, other receivables, notes receivables,
prepayments, long-term receivables etc., the initial recognition amount shall be the contract price or agreed price
receivable due from purchasing party. The initial amount of the accounts receivable with financing nature are
recognized based on the present value.
The difference between the amount obtained and the book value of the accounts receivable is included in current
profit and loss upon recovery or disposal.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends that
have been declared but not distributed and bond interests that have matured but not been drawn) and transaction
costs when acquired.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Available-for-sale financial assets are measured at fair value at the end of the period, and changes in fair value are
included in the capital reserves (other capital reserves). those equity instrument investments not quoted in an
active market and whose fair value cannot be reliably measured, and the derivative financial assets linked to and
settled by way of delivery of such equity investments are measured at the cost.
Difference between the proceeds and the book value of the financial assets is recognized as gain or loss on
investment upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value
which is originally and directly included in the owners’ equity shall be transferred out and charged to the current
gains or losses.
(5) Other financial liabilities
27
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses. The subsequent
measurement is based on amortized costs. They are subsequently measured at amortized cost.
3.Recognition and measurement for transfer of financial assets
If the Company has transferred nearly all of the risks and rewards relating to the ownership of the financial assets
to the transferee, they shall be derecognized. If it retains nearly all of the risks and rewards relating to the
ownership of the financial assets, they shall not be derecognized.
In judging whether the transfer of a financial asset meets the above requirements of derecognizing financial assets,
the principle of substance over form is adopted. The Company divides the transfer of a financial asset into entire
financial asset transfer and partial transfer. As for the entire financial asset transfer which is qualified for
derecognition, the difference between the following two amounts is recognized in the current profit and loss: The
Company divides the transfer of a financial asset into entire financial asset transfer and partial transfer. As for the
entire financial asset transfer which is eligible for derecognition, the difference between the following two
amounts is recognized in the current profit and loss:
i) Book value of the transferred financial assets;
ii) Sum of the price received from the transfer with the cumulative change in the amount of fair value directly
recorded in the original owners’ equity (involving the case when the transferred financial assets are those
available for sale).
As for the partial financial assets transfer which are eligible for derecognition, the whole book value of the
transferred financial assets should be apportioned in accordance with their respective relative fair value between
the derecognized parts and the recognized parts; and the difference between the following two amounts is
recognized in the current profit and loss:
(i) book value of the derecognized parts;
(ii) sum of the consideration received from the derecognized parts with the amount of the derecognized parts
corresponding to the cumulative changes in the amount of fair value directly included in the original owners’
equity (involving the case when the transferred financial assets are those available for sale).
If the transfer of financial assets does not satisfy requirements for derecognition, the financial assets shall
continue to be recognized, and the consideration received will be recognized as financial liabilities.
4.Conditions for derecognition of financial liabilities
Financial liabilities shall be entirely or partially derecognized if the present obligations derived from them are
entirely or partially discharged. Where the Company enters into an agreement with a creditor so as to substitute
the current financial liabilities with new ones, and the contract clauses of which are substantially different from
those of the current ones, it shall recognize the new financial liabilities in place of the current ones.
If material amendments have been made to all or part of contract terms of current financial liabilities, all or part of
current financial liabilities are derecognized, and the financial liabilities with amended terms are recognized as
new financial liabilities.
Upon entire or partial derecognition of financial liabilities, differences between the carrying amounts of the
derecognized financial liabilities and the consideration paid (including non-monetary assets surrendered or new
financial liabilities assumed) are charged to profit or loss for the current period.
If the Company repurchases part of financial liabilities, it shall distribute, on the repurchase day, the whole book
value of the financial liabilities in accordance with the relatively fair value between the part to be recognized
continuously and the part to be derecognized. The balance between the book value distributed to the part which
has been derecognized and the consideration paid to it (including non-cash assets which have been transferred out
or the new financial liabilities it assumed), shall be included in current profit and loss.
5.Recognition of fair values of financial assets and financial liabilities
The fair value of the financial instrument with an active market is determined based on the quotation in the active
market. The fair value of the financial instrument without an active market is determined using valuation
techniques. In terms of the estimation, the estimation technology which is applicable in the current circumstance
and supported by enough available data and other information is adopted and the input value which is similar to
28
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
the features of assets and liabilities and taken into account of by the market participants in the transaction of
relevant assets or liabilities are selected by the Company, which give priority in use of the relevant observable
value. The unobservable value is used only when the relevant observable value cannot be obtained or is
impracticable.
6.Testing and accounting treatment of financial assets (excluding accounts receivable)
Except for the financial assets measured at fair values through current profit and loss, the book value of financial
assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,
provision for impairment shall be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair values of available-for-sale financial assets have significantly declined at the period end, or it is
expected that the trend of decreases in values is non-temporary after consideration of all the relevant factors,
impairment shall be recognized, and the accmulated loss on decreases in fair values previously charged directly to
capital reserves are reversed and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in
the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition
of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current
profit and loss.
Impairment losses on available-for-sale equity instruments shall not be reversed through profit or loss.
(2) Provision for impairment of held-to- maturity investments:
Measurement of provisions for impairment loss on held-to-maturity investments is similar to that applicable
to provisions for impairment loss on receivables.
11.Account receivable
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount
Individual account receivable over 5 millions, other individual receivable over 3 millions
of individual account with large amount
For large amount receivable accounts which been proved with solid evidence to impair,
the difference between the future cash flow and its book value shall be provided as bad
Basis of bad debt provision
debt provision.For large amount receivable accounts which was tested not impaired, bad
debt provision shall be provided on age analyse basis.
(2) Accounts receivable with provision for bad debts accrued by credit risk features portfolio
Name Basis of bad debt provision
Accounts receivable without provision for bad debt Age analysis method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Proportion of provision for accounts Provision for bad debt of other receivables
Aging
receivable (%) (%)
Within 6 months(including 6 months) 0.00% 0.00%
6－12 months 5.00% 5.00%
29
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons for individual provision for bad debts: If there is any
clear evidence indicating that the receivables cannot or are
unlikely to be recovered, for example, the bankruptcy,
insolvency, insufficient cash flow of the debtor, or the insolvency
Reasons of Withdrawing Individual Bad Debt Provision in a short time due to the production halt resulting from the
severe natural disaster, or the accounts receivable may be
exposed to risk as indicated by other evidence, the individual
provision for bad debt will be made.
Method of provision for bad debt: The provision for bad debt is
individually recognized at the difference between the book value
and the present value of estimated future cash flow. Method of
Withdrawing Method of Bad Debt Provision
provision for bad debt: The provision for bad debt is individually
recognized at the difference between the book value and the
present value of estimated future cash flow.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1.Classification of inventories
Inventories are classified into: raw materials, revolving materials, consigned processing materials, low-cost
consumables, packaging materials, stock commodities, goods in progress, semi-finished goods, finished goods,
etc.
2.Valuation of dispatched inventories
The inventories dispatched are measured by weighted average method.
3.Basis for determination of net realizable value of different categories of inventories
Net realizable values of merchandise inventories held directly for sale, such as finished goods, merchandise
inventories, and available-for-sale materials, are measured at the estimated selling prices less estimated sales
expenses and relevant taxes and surcharges in the normal production process. Net realizable values of material
inventories which need further processing are measured at the estimated selling prices less the estimated costs of
completion, estimated sales expenses and relevant taxes and surcharges in the normal production process. Net
30
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
realizable values of inventories held for the purpose of fulfillment of sales contracts or service contracts should be
calculated on the basis of the contract prices; if the quantity of inventories held exceeds that stated in the contract,
the net realizable values of the excessive part should be calculated on the basis of normal selling prices.
The Company shall make provisions for impairment loss on diminution in value of inventories on an individual
basis at the year end. For inventories with large quantities and relatively low unit prices, the provisions for loss on
diminution in value of inventories shall be made on a category basis. For the inventories related to the product
portfolios manufactured and sold in the same area, and of which the final usage or purpose is identical or similar
thereto, and which is difficult to separate from other items for measurement purposes, the provisions for
impairment loss on diminution in value of inventories may be made on a portfolio basis.
The net realizable value of inventory items is determined based on the market price on the balance sheet date,
unless there is clear evidence that the market price is abnormal on the balance sheet date.
The net realizable value of inventory items as at the end of the period is determined based on the market
price on the balance sheet date.
4.Inventory system
The perpetual inventory system is adopted.
5.Amortization of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized under the lump-sum method;
(2) Packing materials are amortized under the lump-sum method.
13 .Assets classified as held-for-sale assets
The component (or non-current asset) will be recognized as the thing held for sale, if all the following conditions
are met at the same time:
(1) Such component can be sold as it is, in accordance with the usual terms on its sales;
(2)The Company has been an integral part of the disposal of the (non-current assets) made a resolution, such as
the need to obtain the required shareholder approval, has the approval of the shareholders' meeting or the
appropriate authority;
(3)The Company has signed an irrevocable transfer agreement with the transferee;
(4)Such transfer will be completed within one year.
14.Long-term equity investment
1.Judgment criteria of joint control or effect of material impact
Common control refers to the control shared over an arrangement in accordance with the relevant stipulations, and
the decision-making of related activities of the arrangement should not be made before the party sharing the
control right agrees the same. Where the Company exercises common control over the investee together with
other parties to the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of
the Company.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control over those polices. Where the Company has significant influences on an investee, the
investee shall be an associate of the Company.
2.Determination of initial investment cost
(1) Long-term equity investment acquired from business combination
For business combination under common control: If the Company makes payment in cash, transfers non-cash
assets or bears debts and issues equity securities as the consideration for the business combination, the share of
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
owners' equity of the acquiree obtained on the combination date in the book value of the ultimate controller's
consolidated financial statement is recognized as the initial cost of the long-term equity investment. Where
additional investment or other reasons make the control over the investee under the same control possible, the
initial investment cost of the long-term equity investments is measured at the share of net assets of the acquiree on
the combination date in the book value of the ultimate controller's consolidated financial statements. The stock
premium is adjusted according to the difference between the initial cost of long-term equity investments on the
combination date and the sum of the book value of long-term equity investments before combination and the book
value of the consideration further paid for obtaining shares; if there is no sufficient share premium for
write-downs, the retained earnings are offset.
For business combination not under common control: the Company recognizes the combination cost determined
on the combination date as the initial cost of long-term equity investment. Where additional investment, or other
reasons make the control over the investee not under the same control possible, the initial investment cost under
the cost method will be the sum of the book value of the equity investments previously held and the newly
increased investment costs.
(2)Long-term equity investment acquired by other means
The initial costs of a long-term equity investments obtained by payments of cash shall be the purchase prices
actually paid.
The initial costs of long-term equity investments in equity securities shall be stated at their fair values.
If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out unless there is any conclusive evidence that
the fair values of the assets traded in are more reliable; if the exchange of non-monetary assets does not meet the
above criteria, the book value of the assets traded out and the relevant taxes and surcharges payable are recognized
as the initial cost of long-term equity investment traded in.
The initial costs of long-term equity investments arising from debt restructuring shall be stated at their fair values.
3.Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment calculated under the cost method
The Company applies cost method to account for the long-term equity investments of subsidiaries. Except for the
price actually paid upon acquisition or the cash dividends or profit included in the price that are declared but not
yet paid, the Company recognizes investment income for the current period at the share of the cash dividends or
profits declared and released by the investee.
(2)Long-term equity investment calculated under the equity method
Long-term equity investments in associates and in joint ventures are accounted for under the equity method. If the
cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee
when the investment is made, the difference will not be adjusted to the initial cost of long-term equity investment;
if the cost of initial investment is in short of the proportion of the fair value of the net identifiable assets in the
investee when the investment is made, the difference will be included in the current profit and loss.
The Company recognizes the investment income and other comprehensive income according to the net gain or
loss and other comprehensive income of the investee attributable to the Company, and adjusts the book value of
long-term equity investment; reduces the book value of long-term equity investments according to the profit or
cash dividends declared by the investee and attributable to the Company; and adjusts the book value of the
long-term equity investments in the investee, as to the change in owners' equities other than the net gain or loss,
other comprehensive income and profit distribution of the investee, and charges the same to the owners' equities.
When the share in net profit and loss of the investee is recognized, the fair value of the identifiable net assets of
the investee when the investment is obtained shall be taken as a basis and the share will be determined after the
net profit is adjusted in accordance with the Company's accounting policies and accounting periods. During the
period of holding the investment, if the investee is capable of providing consolidated financial statements, the
profit or loss shall be measured based on the net profit and other changes in equity recorded in the consolidated
financial statements.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
The profit and loss of the internal transactions that are not realized arising among the Company, affiliated
enterprises, and joint ventures will be offset at the part attributable to the Company and the investment income
will be recognized on that basis. For internal trading losses that have not occurred with the investee, they will be
fully recognized if they belong to the asset impairment losses. The trading of assets between the Company and its
associates or joint ventures, which constitutes business, are treated according to the policies disclosed in "Note 3.5
Accounting Treatment of Combination of enterprises under common control and enterprises not under common
control" and "Note 3.6 Preparation of consolidated financial statements".
When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: Firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book
value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of
other long-term equity which form net investment in the investee in substance and the book value of long term
receivables shall be reduced. 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 included into current investment loss according to the obligations
estimated to undertake.
(3)Disposal of long-term equity investment
Upon disposal, the difference between the book value and the price obtained is recognized in current profit and
loss.
Disposal of long-term equity investments accounted for under the equity method, which is previously charged to
other comprehensive income is treated in proportion on the same basis for direct disposal of relevant assets of
liabilities by the investee. Owner's equities recognized arising from change in other owners' equities other than net
gain or loss, other comprehensive income and profit distribution of the investee are carried forward to the current
profit or loss in proportion, except for the other comprehensive income arising from the change on
re-measurement of the net liabilities or net assets under the defined benefit plan by the investee.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity
investments, the remaining equity after the disposal are computed according to the principles for recognition and
measurement of financial instruments, and the difference between the fair value and book value on the day of loss
of common control or material impact is charged to the current profit or loss. For other comprehensive income
that is recognized from original equity investment by using the equity method, the accounting treatment will be
made on the basis the same as that for the direct disposal of related assets and liabilities with the investee when
the equity method is terminated for accounting purpose. Owner's equities recognized arising from change in other
owners' equities other than net gain or loss, other comprehensive income and profit distribution of the investee are
entirely transferred to the current profit or loss when the accounting under the equity method is ended.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity
investments, the remaining equity after the disposal are computed under the equity method, with the adjustment
made as if such remaining equities are calculated under the equity method after they are obtained, when the
separate financial statement is prepared; the remaining equities after disposal leading to the incapable exercise of
common control over or material impact on the investee shall be treated according to the principles for recognition
and measurement of financial instruments, and the difference between the fair value and book value on the day of
loss of common control or material impact is charged to the current profit or loss.
If the equities disposed were obtained from the business merger by reason of additional investment or
others, and the remaining equities after disposal are calculated under the cost method or equity method
when the individual financial statement is prepared, other comprehensive income and other owners' equities
recognized and arising from the calculation of the equity investment held before the acquisition date under
the equity method will be carried forward in proportion; if the remaining equities after disposal are treated
according to the principles for recognition and measurement of financial instruments, both of other
comprehensive income and other owners' equities are entirely carried forward.
15. Investment property
The measurement mode of investment property
The measurement by the cost method
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Depreciation or amortization method
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land
leased out under operating leases, land held for long-term capital appreciation, buildings leased out under
operating leases, (including buildings that have been constructed or developed for future lease out under operating
leases, and buildings that are being constructed or developed for future lease out under operating leases).
The Company adopts cost model to measure all current investment properties. The Company adopts the same
depreciation policy for the investment property measured at cost model building for renting as that for the
Company’s fixed assets and the same amortization policy of land use right for renting as that for the Company’s
intangible assets.
16.Fixed assets
（1） Criteria for recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or
business management with useful lives exceeding one accounting year. Fixed assets will only be recognized when
all the following criteria are satisfied: Fixed assets will only be recognized when all the following criteria are
satisfied:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2)The costs of the fixed asset can be measured reliably.
（2）Depreciation method
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
Buildings and Straight-line method 25-35 3 2.77-3.88
constructions
Straight-line method 7-15 3 6.47-13.86
Machinery equipment
Transportation Straight-line method 8-10 3 9.70-12.13
equipment
Straight-line method 5-10 3 9.70-19.40
Other equipment
Straight-line method
（3）Basis for recognition and measurement of fixed assets acquired under the finance lease
The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by
the Company and the leaser in their lease agreement:
(1)The ownership of the leased assets is transferred to the Company by the end of the lease terms;
(2)The Company has the option to purchase the assets at prices which are expected to be sufficiently lower than
fair values at the date the option becomes exercisable that, at the inception of the leases, it is reasonably
certain that the option will be exercised;
(3)The lease terms cover the major part of the economic lives of the assets, even if titles are not transferred;
(4)At the inception of the leases, the present values of the minimum lease payments amount to at least
substantially all of the fair values of the leased assets. On the lease commencement date, the book-entry value of
a fixed asset acquired under financing lease is measured at the asset’s fair value or the present value of the
minimum lease payment, whichever is the lower. The minimum lease payment is recorded as the book-entry
value of the long-term payables, and the difference between them is deemed as the unrecognized financing
expenses.
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17.Construction in progress
The book values of the construction in progress are stated at total expenditures incurred before reaching working
condition for their intended use. For construction in progress that has reached working condition for intended use
but relevant budgets for the completion of projects have not been completed, the estimated values of project
budgets, prices, or actual costs should be included in the costs of relevant fixed assets, and depreciation should be
provided according to relevant policies of the Company when working condition is reached. After the completion
of budgets needed for the completion of projects, the estimated values should be substituted by actual costs, but
depreciation already provided is not adjusted.
18.Borrowing costs
1.Principles for recognition of capitalization of borrowing costs
Borrowing costs include the interest on borrowings, the amortization of discount or premium, auxiliary expenses,
exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing
costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may
reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1)The asset disbursements have already incurred, which shall include the cash paid, non-cash assets transferred
or interest bearing debts undertaken for the acquisition and construction or production activities for preparing
assets eligible for capitalization;
(2)The borrowing costs has already incurred; and
(3)The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
2.Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its cessation;
period of suspension for capitalization is excluded.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs shall be ceased.
Where construction for assets purchased, constructed or manufactured eligible for capitalization is completed in
stages, which can be used while construction of the other parts continues, capitalization of attributable borrowing
costs should cease when substantially all of the activities necessary to prepare that part for its intended use or sale
are complete.
Where construction for each part of assets purchased, constructed or manufactured has been completed separately
but can be used or sold only after the entire assets have been completed, capitalization of attributable borrowing
costs should cease at the completion of the entire assets.
3.Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are interrupted
abnormally and this condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary for the acquisition and construction or production to prepare the assets
for their intended use or sale, the capitalization of borrowing costs should continue. The borrowing costs incurred
during interruption are recognized in the current profit and loss, and the capitalization of borrowing costs
continues after the restart of the acquisition and construction or production activities of the assets.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
4,Capitalization rate and measurement of capitalized amount of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,
the to-be-capitalized amount shall be determined at interest expense of special borrowing actually incurred in the
current period less the interest income of the borrowings unused and deposited in bank or return on temporary
investment.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization,
the to-be-capitalized amount should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings by the
capitalization rate of used general borrowings. The capitalization rate is calculated by using the weighted
average interest rate of general borrowings.
19. Biological assets
20. Oil-gas assets
21. Intangible assets
1 Pricing method, useful life and impairment test
(1) The Company initially measures intangible assets at cost on acquisition;
The costs of external purchase of intangible assets comprise their purchase prices, related taxes and surcharges
and any other directly attributable expenditure incurred to prepare the asset for its intended use. If payments for
the purchase of intangible assets are extended beyond the normal credit terms with financing nature, the costs of
intangible assets are determined on the basis of present values of the purchase prices.
For intangible assets obtained from debtors in settlement of his liabilities in case of debt restructuring, they should
be initially stated at their fair values. Differences between the book values and the fair values of the intangible
assets are charged to profit or loss for the current period.
If the exchange of non-monetary assets has commercial substance, and the fair values of these assets can be
measured reliably, the book-entry values of intangible assets traded in are based on the fair values of the intangible
assets traded out unless there is any conclusive evidence that the fair values of the assets traded in are more
reliable. If the exchange of non-monetary assets does not meet the above criteria, the costs of the intangible assets
traded in should be the book values of the assets traded out and relevant taxes and surcharges paid, and no profit
or loss shall be recognized.
(2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on their acquisition.
As for intangible assets with limited useful life, straight-line amortization method is adopted in the period when
the intangible assets generate economic benefit for enterprise; if the period when the intangible assets generate
economic benefit for enterprise cannot be forecasted, the intangible assets shall be deemed as those with indefinite
useful life and shall not be amortized.
2.Estimate of the useful life of the Intangible assets with finite useful lives:
The useful lives and amortization methods of intangible assets with limited useful lives are reviewed at each year
end.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not
different from those estimated before.
3.Basis for judgment of intangible assets with indefinite useful life and procedures for review of the life thereof
The useful lives and amortization method of intangible assets with limited useful lives are reviewed at the end of
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not
different from those estimated before.
4.Specific criteria of classification into the research phase and the development phase
Expenditures on an internal research and development project shall be classified into expenditures on the research
phase and expenditures on the development phase.
Research phase: Research is original and planned investigation, undertaken with the prospect of gaining new
scientific or technical knowledge and understanding.
Development phase: Development is the application of research findings or other knowledge to a plan or design
for the production of new or substantially improved materials, devices, or products before the start of commercial
production or use.
5.Criteria for capitalization of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects must be capitalized if
the Company can satisfy all of the following criteria:
(1) It is technically feasible to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible assets;
(3) the method that the intangible assets generate economic benefits, including existence of a market for products
produced by the intangible assets or for the intangible assets themselves, shall be proved. Or, if to be used
internally, the usefulness of the assets shall be proved;
(4) adequate technical, financial, and other resources are available to complete the assets, and the Company has
the ability to use or sell the assets; and
(5) The expenditures attributable to the intangible assets during their development phase can be reliably
measured.
If the above conditions are not satisfied, expenditures on the development phase shall be included in current profit
and loss when they occur. Expenditures on the research phase shall be included in current profit and loss when
they occur.
According to the Accounting Standards for Enterprises in combination with the actual situation of the Company,
the period between the report on pre-study of project to the issuance of project assessment and examination report
is defined as the research state, in which the expenditures incurred are expensed when incurred and charged to the
current profit or loss.
In the development stage, research findings or other knowledge is applied to a plan or design for the production of
new or substantially improved materials, devices, or products before the start of commercial production or use.
This phase is equipped with the basic conditions for the formation of a new product or technology to a greater
extent.
According to the actual situation of the Company, the period between the adoption of project assessment and
examination with the assessment and examination report issued to the batched production is defined as the
development stage. The project development expenditures will be capitalized, if the conditions for capitalization
of development expenditures are met.
All expenditures incurred on research of application of basic techniques are classified as research stage
expenditures and charged to the current profit or loss when incurred.
（2）Internal research and development expenditure accounting policy
22. Impairment of long-term assets
The Company will conduct the impairment test if any evidence suggests that the long assets, such as the long-term
equity investment and the investment property, fixed assets, construction in progress and intangible assets, are
impaired on the balance sheet date. If impairment test results indicate that the recoverable amounts of the assets
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
are lower than their carrying amounts, the provision for impairment is made based on the differences which are
recognized as impairment losses. The recoverable amounts of intangible assets are the higher of their fair values
less costs to sell and the present values of the future cash flows expected to be derived from the assets. The
provision for assets impairment is calculated and recognized by the individual asset. If it is difficult to estimate the
intangible amount of an individual asset, the Company shall estimate the recoverable amount of the asset portfolio
that the individual asset belongs to. The asset portfolio is the minimum asset group that can independently
generate the cash inflow.
At least the goodwill impairment test is conducted at the year-end.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business
combinations is amortized to relevant asset groups with a reasonable method since the date of acquisition; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. The
book value of goodwill is amortized to relevant asset groups or combinations of asset groups according to the
proportion of the fair value of such asset groups or combinations of asset groups in the total fair value of relevant
asset groups or combinations of asset groups. Where the fair value cannot be reliably measured, it should be
amortized according to proportion of the book value of each asset group or combination of asset group in the total
book value of relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill,
if any indication shows that the asset groups or combinations of asset groups related to the goodwill may be
impaired, the Company shall first conduct an impairment test on the asset groups or combinations of asset groups
not containing goodwill, calculate the recoverable amount and compare it with the relevant book value to
recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the asset
groups or combinations of asset groups containing goodwill, and compare the book value of these asset groups or
combinations of asset groups (including the book value of the goodwill apportioned thereto) with the recoverable
amount. Where the recoverable amount of the relevant asset groups or combinations of asset groups is lower than
the book value thereof, the Company shall recognize the impairment loss of the goodwill.
The above impairment loss is not reversed in the future accounting period once recognized.
23.Long-term deferred expenses
Long-term deferred expenses refer to the expenses which have been already incurred but will be borne in the
current period and in the future with an amortization period of over 1 year. Long-term deferred expenses are
evenly amortized over the benefit period.
24.Employee compensation
1.Accounting treatment of short-term remuneration
During the accounting period in which employees provide service to the Company, the short-term remuneration
actually incurred is recognized as liabilities and charged to the current profit or loss or the relevant assets cost.
The medical insurance premium, work-related injury insurance premium and the housing provident fund paid by
the Company for its employees, together with the labor union expenditures and employee education are used to
calculate and determine the relevant employee compensation amount based on the prescribed accrual basis and
accrual proportion.
The non-monetary benefits for employees that can be measured reliably are measured at fair value.
2.Accounting treatment of benefits paid after departure
The basic endowment insurance premium and unemployment insurance premium paid by the Company for
its employees in accordance with relevant provisions of the local government are recognized as liabilities
and charged to the current profit or loss or the relevant assets cost, with the payable amount calculated
based on the local prescribed payment base and percentage, during the accounting period in which the
employees provide services to the Company.
In addition to the basic endowment insurance, the Company also build the enterprise annuity payment
system (supplementary pension insurance) in accordance with relevant national policies established a
pension payment system / corporate pension plans. The Company pays a certain percentage of the total
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
employee compensation to the local social institution for the payment/payment under annuity plan, and
record the relevant expenditures into the current profit or loss or the relevant assets cost.
3.Accounting treatment of dismissal welfare
Where the Company cannot unilaterally withdraw when termination benefits due to termination of employment or
layoff proposal offered, or confirm the reorganization involves the payment of termination benefits when
associated costs or expenses (both what early), confirm termination benefits employees pay liabilities, and profit
or loss.
4 .Accounting treatment of other long term employee benefits
25.Estimated liabilities
1.Recognition criteria for estimated liabilities
The Company recognizes the estimated liabilities when the obligations relating to litigation, debt-guarantee, loss
contract, restructuring and other contingencies satisfy the following conditions simultaneously:
(1)That obligation is a present obligation of the Company;
(2)The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
(3)The amount of the obligation can be measured reliably.
2.Measurement of a variety of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the
performance of relevant present obligations.
When determining the best estimate, the Company shall comprehensively consider the risks, uncertainties, time
value of money, and other factors relating to the contingencies. If the time value of money is significant, the best
estimates shall be determined after discount of relevant future cash outflows.
The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and
lower limits within the range.
Given the fact that there is no continuous range (or interval) for the necessary expenses, or probabilities of
occurrence of all the outcomes within this range are unequal despite such a range exists, in case that the
contingency involves a single item, the best estimate shall be determined at the most likely outcome; if the
contingency involves two or more items, the best estimate should be determined according to all the possible
outcomes with their relevant probabilities.
When all or part of the expenses necessary for the settlement of an estimated liabilities are expected to be
compensated by a third party or other parties, the compensation shall be separately recognized as an asset
only when it is virtually certain that the compensation will be received. The amount recognized for the
compensation shall not exceed the book value of the estimated liabilities.
26.Share-based payment
The share-based payment is the transaction the Company has to grant the equity instrument to employees or
assume the liability determined based on the equity instrument, for the service provided by the employees [or
other parties]. The share-based payments of the Company can be divided into the equity-settled share-based
1.Equity-settled share-based payments and equity instruments
In case of the equity-settled share-based payment for the service provided by employees, the measurement is
based on the fair value of the equity instruments granted to employees. Where the Company carries out a
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
restricted share-based payment, the employees subscribe shares by contributing capital, and the shares cannot be
traded or transferred in the market until they satisfy the conditions for removing the freeze; if the conditions for
removing the freeze as prescribed by the ultimate stock stimulating plan fail to be satisfied, the Company shall
repurchase the shares as previously agreed. When the Company receives the payments for subscription of
restricted shares from the employees, it shall recognize the share capital and capital reserves (share capital
premiums) according to the payments for subscription received, and recognize a liability and treasury shares with
respect to the repurchase obligation. On every balance sheet date during the waiting period, the Company
estimates the quantity of the exercisable equity instruments in light of the latest subsequent information, such as
the change in the number of employees obtaining the exercisable equity instrument or whether the specified
performance requirements are met, based on which the services obtained in the current period are charge to the
relevant costs or expenses at the fair value on the grant date, with the capital reserves added correspondingly.
Those payments which are exercisable immediately after the grant are charged to the relevant costs or expenses,
with the capital reserves added correspondingly. After the vesting date, the recognized relevant costs or expenses
or total amount of owners' equity shall not be adjusted any more.
No cost or expense is recognized for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition, which are treated as vesting irrespective of whether or not the market
condition is satisfied, provided that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms
had not been modified. In addition, an expense is recognized for any modification which increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date
of modification.
Where an equity-settled share-based payment is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognized for the award is recognized immediately. Where employees or
other parties are permitted to choose to fulfill non-vesting conditions but have not fulfilled during the pending
period, equity-settled share-based payments are deemed cancelled. However, if a new equity instrument is
substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the new
equity instrument are treated as if they were a modification of the original award.
2.Cash-settled share-based payments and equity instruments
The cash-settled share-based payment is measured in accordance with the fair value of liability calculated and
confirmed based on the shares or other equity instruments undertaken by the Company. The cash-settled
share-based payment is initially measured in accordance with the fair value on the vesting date, in consideration of
the terms and conditions for granting the equity instruments. If the right may be exercised immediately after the
grant, the fair value of the liabilities shall, on the vesting date, be included in the costs or expenses, together with a
corresponding increase in the liabilities; if the right cannot be exercised until the vesting period comes to an end
or until the prescribed performance conditions are met, then within the vesting period, the services obtained in the
current period shall, based on the best estimate of the number of vested equity instruments, be included in the
relevant costs or expenses at the fair value of the liabilities on the vesting date, together with a corresponding
increase in the liabilities. On each balance sheet date and on each account date prior to the settlement of the
relevant liabilities, the fair values of the liabilities are re-measured and the changes.
27. Other financial instruments such as preferred shares and perpetual capital securities
28.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1 General principles for recognition of revenues from sales of goods:
40
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(1) The Company has transferred to the buyer the significant risks and rewards of ownership relevant to the
goods in question;
(2) The Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
(3) The relevant amount of revenue can be measured reliably;
(4) It is probable that the economic benefits related to the transaction will flow into the Company; and
(5) The relevant costs incurred or to be incurred can be measured reliably.
2 Concrete principles for revenues from primary businesses
Sales of automobile air-conditioner: the Air-conditioner Company deliveries goods according to the
customers' production plans and safty stock; after the customers use the products, the salesmen issue a
notification of making out an invoice according to the customers' monthly usage amounts and contracted
prices, the finance department issues an invoice and the revenues from sales shall be recognized.
29.Government grants
(1) Judgment basis and accounting treatment of government subsidies related to assets
Government subsidies related to assets refer to the subsidies obtained by the Company from the government and
used to form long-term assets through acquisition and construction or otherwise, including the financial
appropriation for purchase of fixed assets or intangible assets and the finance discounts for special borrowings of
fixed assets.
Government grants related to assets are recognized as deferred income and included in non-operating income over
the useful lives of the assets constructed or purchased by stages;
(2) Judgment basis and accounting treatment of government subsidies related to profits
Government grants related to assets are recognized as deferred income and included in non-operating income over
the useful lives of the assets constructed or purchased by stages;
If government subsidies related to income are used to compensate the Company’s relevant expenses or
losses in future periods, such government subsidies should be recognized as deferred income on acquisition
and be included into the current non-operating income in the period of recognizing relevant expenses; if
government subsidies related to income are used to compensate the enterprise’s relevant expenses or losses
incurred, such government subsidies are directly included into the current non-operating income on
acquisition.
30.Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets shall be recognized for deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences can be utilized.
As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred
income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the
deductible loss or tax deduction to be likely obtained.
Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or events excluding business
combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when
occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge
liabilities simultaneously, the income tax assets and income tax liabilities of the Company for the current period
shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities for the current
41
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the
income tax which are imposed on the same taxpaying subject by the same tax collection authority or on different
taxpaying subjects, but, in each important future period in connection with the reverse of deferred income tax
assets and liabilities, the involved taxpaying subject intends to balance income tax assets and liabilities for the
current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax
assets and deferred income tax liabilities shall be presented based on the net amount after offset.
31.Leases
1.Accounting treatment of operating lease
(1) Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole
lease period (including rent-free period) and shall be included in the current expenses. Initial direct costs relating
to lease transactions incurred by the Company shall be recognized as the current expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset, then
such expenses shall be deducted from total lease fees, and the balances shall be amortized over the lease term s
and charged to the current expenses.
(2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the
whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs
relating to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts
are material, they shall be capitalized and included in the current income on the same basis as the recognition of
lease income.
If expenses relating to leases which should be borne by the lessee of the assets are paid by the Company, they
shall be deducted from the total lease income and the balances shall be amortized over the lease terms by the
Company.
2.Accounting treatment of financing lease
(1) Assets acquired under financing leases: At the commencement of the lease terms, assets acquired under
financing leases shall be recorded at the lower of their fair values and the present values of the minimum lease
payments, and the Company shall recognize the long-term payables at amounts equal to the minimum lease
payments, and shall record the differences between book value of the leased assets and the long-term payables as
unrecognized finance charges. The Company adopts the effective interest rate method for unrecognized financing
charges, which shall be amortized over the lease terms and included in financial expenses. Initial direct costs
incurred by the Company shall be included in the value of leased assets.
(2) Assets rented out under financing leases: At the commencement of the lease terms, the Company shall
recognize the differences between the undiscounted rents receivable plus unguaranteed residual values and
their present values as unrealized financing income, and shall recognize them as lease income during each
period when rents are received. Initial direct costs associated with the lease transactions and incurred by the
Company shall be included in the initial measurement of the financing lease receivable and lease income
recognized over the lease terms shall be reduced accordingly.
32. Main accounting policies and accounting estimates
Termination of operation refers to any integral part that satisfies any of the following conditions, has been
disposed or classified into assets held for sale by the Company and that is able to be separately
distinguished upon operation and preparation of the financial statements:
(1) the integral part represents an independent primary business or a key operation region;
(2) the integral part is an element of the plan of proposing to dispose an independent primary business or
a key operation region; or
(3) the integral part is a subsidiary acquired only for the resale purpose.
42
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
Approval
The content and reasons of accounting policy changes Remarks
process
There was adjustment on the financial
statements presentation of the semi-annual
Examined and report, and it adjusted the received
On May 10, 2017, the Ministry of Finance promulgated the Notice on
approved at the government finance interest subsidies to
Issuing the Amendment to Accounting Standards for Business
2nd meeting of the financial expenses-interest expenses
Enterprises No. 16-Government Grants (Accounting [2017] No. 15),
the 8th Board of from the non-operating revenue and
which came into effect on June 12, 2017.
Directors expenses. This change has no significant
impact on the financial condition,
operating results and the cash flow.
Enforce Value - added Tax Accounting Regulations.The Ministry of Finance released Value - added Tax Accounting Regulations
(Financial Accounting [2016] No:22 ) on December 3, 2016, which is appropriate for related transacrions form May 1, 2016.
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other
Not applicable
VI. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
Calculated on tax law from selling goods and taxable services based on the
VAT calculation of output tax, after deduction of input tax deductibility of the 17%、11%、6%
current period, the balance part of VAT payable
Consumption tax Revenue of taxable consumables 3%
City maintenance and
Value-added tax, operating tax and consumption tax paid 7%
construction tax
Enterprise income tax Taxable income 25%、15%
Levied based on the taxable income (Since May 1, 2016, the Business tax
Operational tax 5%
changes to Value-added tax)
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
43
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Chongqing Jianshe Motorcycle Co., Ltd. 15%
Shanghai Jianshe Motorcycle Co., Ltd. 25%
Chongqing Jianshe Automobile A/C Co., Ltd. 15%
2. Preferential tax treatment
The company is subject to the enterprise income tax rate of 15% in 2016, as a result of the preferential enterprise
income tax policies to promote the large-scale development of the western region in accordance with the
Announcement on Issues of Enterprise Income Tax concerning In-depth Implementation of Western Region
Large-scale Development Strategy (Announcement of the State Administration of Taxation [2012] No.12)
Chongqing Jianshe Automobile A/C Co., Ltd. by high and new technology enterprise qualification on November 8,
2013, acquire the qualification of new high-tech enterprises, Certificate No. GR201351100081, valid for three
years. Chongqing Jianshe Automobile A/C Co., Ltd. calculates and pay enterprise income tax shall be levied at the
reduced tax rate 15% from 2014 to 2016. The Company and other subsidiaries pay the enterprise income tax at a
tax rate of 25%.
3.Other
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash on hand 24,628.87 31,205.34
Bank deposits 167,475,250.51 273,737,553.12
Other cash and cash equivalents 127,778,538.50 240,646,064.11
Total 295,278,417.88 514,414,822.57
Other notes
2. Financial assets measured at fair value through current profit and loss
In RMB
Items Closing balance Opening
Other notes：
3. Derivative financial assets
□ Applicable √Not applicable
44
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Closing balance Opening balance
Bank acceptance bill 62,644,057.09 14,907,890.35
Total 62,644,057.09 14,907,890.35
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet
date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 331,556,355.38
Total 331,556,355.38
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
In RMB
Amount of the notes transferred to account receivable at the
Items
period-end
Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book Book balance Bad debt provision
Book value
Amount Proportio Amount Proportio value Amount Proportio Amount Proportion
45
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
n% n% n% %
Accounts receivable
with provision for
bad debt made on a 271,313, 16,207,8 255,105,6 270,302 14,715,22 255,587,43
100.00% 5.97% 100.00% 5.44%
portfolio with similar 510.41 40.55 69.86 ,666.49 6.57 9.92
risk credit
characteristics basis
271,313, 16,207,8 255,105,6 270,302 14,715,22 255,587,43
100.00% 5.97% 100.00% 5.44%
Total 510.41 40.55 69.86 ,666.49 6.57 9.92
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
In RMB
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion of provision (%)
Subitem within 1 year
Within 6 months(Including 6
254,250,801.38
months)
6－12 months
Subtotal within 1 year 254,250,801.38 5.00%
1-2 years 726,608.71 365,593.83 10.00%
2-3 years 1,971,790.47 1,522,136.87 30.00%
Over 3 years 14,364,309.85 14,320,109.85
3-4 years 2,329,000.00 2,329,000.00 50.00%
4-5 years 257,359.38 213,159.38 80.00%
Over 5 years 11,777,950.47 11,777,950.47 100.00%
Total 271,313,510.41 16,207,840.55
Notes of the basis of recognizing the group:
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 accrue 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 RMB0.00; the amount of the
reversed or collected part during the reporting period was of RMB 0.00.
Of which the significant amount of the reversed or collected part during the reporting period
46
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
In RMB
Items Reversed or collected amount Method
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
The top five accounts receivable by the credit balance as at June 30, 2017 total RMB 154,005,291.23, accounting
for 56.76% of total amount of balance as at June 30, 2017 of accounts receivable, and the balance as at June 30,
2017 of provision for bad debts provided correspondingly totals RMB9,245,739.19.
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
6.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 8,098,996.10 98.44% 10,729,869.21 98.51%
1-2 years 59,823.65 0.73% 73,792.01 0.68%
2-3 years 51,254.50 0.62% 71,862.00 0.66%
Over 3 years 17,229.80 0.21% 16,409.80 0.15%
Total 8,227,304.05 -- 10,891,933.02 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
47
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Oter notes:
7. Interest receivable
(1) Category of interest receivable
In RMB
Items Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes：
8. Dividend receivable
(1) Dividend receivable
In RMB
Items Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Other notes：
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Other receivables
12,671,7 97.23% 4,529,36 35.74% 8,142,426 13,109, 97.32% 4,529,364 34.55% 8,579,890.0
with provision for
48
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
bad debt made on a 91.41 4.68 .73 254.76 .68 8
portfolio with similar
risk credit
characteristics basis
Other receivables
with insignificant
single amount and 361,125. 361,125. 361,125 361,125.3
2.77% 100.00% 0.00 2.68% 100.00%
provision for bad 35 35 .35 5
debt made on an
individual basis
13,032,9 4,890,49 8,142,426 13,470, 4,890,490 8,579,890.0
100.00% 36.31%
Total 16.76 0.03 .73 380.11 .03 8
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other receivables Provision for bad debts Proportion of provision (%)
Subitem within 1 year
Within 6 months(including 6
4,718,647.09
months)
6－12 months 1,534,749.60 76,737.48 5.00%
Subtotal within 1 year 6,253,396.69 76,737.48 1.23%
1-2 years 2,184,186.13 218,418.61 10.00%
Over 3 years 0 0 0
Over 5 years 4,234,208.59 4,234,208.59 100.00%
Total 12,671,791.41 4,529,364.68 35.74%
Notes of the basis of recognizing the group:
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 accrue 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 RMB 0.00；the amount of
the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
49
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Name Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Of which the significant write-off other accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash and borrowings with small
8,437,582.82 8,875,046.17
amount
Margins and others
Fully provided provision for bad debts
regarding long-term receivables and 4,595,333.94 4,595,333.94
payables
Export rebates receivable
Current account
Total 13,032,916.76 13,470,380.11
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
Closing total year end Closing balance of
Name Nature Aging
balance balance of the bad debt provision
accounts receivable
Top 5 of the closing balance of the other
accounts receivable colleted according 8,098,507.84 62.14% 4,244,328.04
to the arrears party
Total 8,098,507.84 62.14% 4,244,328.04
50
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets (8) The
amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other notes:
10. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Category of inventory
In RMB
Closing balance Opening balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 41,244,392.73 4,618,914.59 36,625,478.14 47,168,260.45 4,618,914.59 42,549,345.86
Goods in progress 12,286,422.18 12,286,422.18 1,931,391.64 1,931,391.64
Stock goods 105,954,671.59 174,210.57 105,780,461.02 156,900,503.61 174,210.57 156,726,293.04
Total 159,485,486.50 4,793,125.16 154,692,361.34 206,000,155.70 4,793,125.16 201,207,030.54
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 4,618,914.59 4,618,914.59
Stock goods 174,210.57 174,210.57
Total 4,793,125.16 4,793,125.16
51
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
In RMB
Items Amount
Other notes:
11. Assets divided as held-to-sold
In RMB
Estimated disposal
Items Closing book value Fair value Estimated disposal time
expense
Other notes：
12. Non-current assets due within 1 year
In RMB
Itmes Closing balance Opening balance
Other notes：
13. Other current assets
In RMB
Items Closing balance Opening balance
Overpaid tax for offsetting the future tax
1,836,709.63 1,734,063.70
payable
Total 1,836,709.63 1,734,063.70
Other notes：
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Available-for-sale equity
1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
instruments
Measured at cost 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
52
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Total 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
Category of the
Available –for-sale Available-for-sale
available-for –sale Total
equity instruments liabilities instruments
financial assets
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Increase Decrease Period-end
in in among the reporting
investees period
Ningbo
Jianshe
Motorcycl
1,140,915. 1,140,915. 1,140,915. 1,140,915.
e 51.00%
04 04 04 04
Manufactu
ring Co.,
Ltd.
1,140,915. 1,140,915. 1,140,915. 1,140,915.
Total --
04 04 04 04
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Cagegory of the
Available-for-sale equity Available-for-sale
avalable-for-sale Total
instruments liabilities instruments
financial assets
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or temporarily
fell but not withdrawn the impairment provision
Items sof
Falling range of Withdrawn Reason of not
available-for-sale Fair value of the Continued falling
Investment cost the fair value amount of with drawn the
equity period-end time(month)
against the cost impairment impairment
instruments
Other notes
53
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
15. Investment held-to-maturity
(1) List of investment held-to-maturity
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Significant held-to-maturity investment at the period-end
In RMB
Bond item Par value Norminal interest rate Actual interest rate Due date
(3) Re-classified held-to-maturity investment during the reporting period
Other notes
16. Long-term accounts receivable
(1) List of long-term accounts receivable
In RMB
Discount rate
Items Closing balance Opening balance
range
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Other notes
17. Long-term equity investment
In RMB
Increase /decrease Closing
Gains and Adjustme Cash Withdraw balance
Opening Additioal Reduced losses nt of Chinges bonus or al of Closing of
Investees
balance investmen investmen recognize other of other profits impairme Other balance impairme
t t d under comprehe equity announce nt nt
the equity nsive d to issue provision provision
54
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
mithod incme
I. Joint ventures
Chongqin
g
Pingshan
83,178,11 2,071,582 4,000,000 81,252,69
TK
2.31 .10 .00 4.41
Carburett
or Co.,
Ltd.
83,178,11 2,071,582 4,000,000 81,252,69
Subtoal
2.31 .10 .00 4.41
II. Associates
83,178,11 2,071,582 4,000,000 81,252,69
Total
2.31 .10 .00 4.41
Other notes
18. Investment property
(1) Investment property adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Construction
Items House, Building Land use right Total
in process
I. Original price
1. Balance at period-beginning 131,695,310.84 20,902,264.96 152,597,575.80
2.Increase in the current period
(1) Purchase
(2)Inventory\Fixed
assets\ Transferred from construction in prog
ress
(3)Increased of Enterprise Combination
3.Decreased amount of the period 0 0 0 0
（1）Dispose
（2）Other out
Transfer to fixed assets, intangible assets
0 0 0 0
accounting
4. Balance at period-end 131,695,310.84 20,902,264.96 152,597,575.80
55
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
II.Accumulated amortization
1.Opening balance 32,213,005.48 5,058,544.71 37,271,550.19
2.Increased amount ofthe period 2,130,812.94 209,022.66 2,339,835.60
(1) Withdrawal 2,130,812.94 209,022.66 2,339,835.60
3.Decreased amount of the period
（1）Dispose
（2）Other out
Transfer to fixed assets, intangible assets
0 0 0 0
accounting
4. Balance at period-end 34,343,818.42 5,267,567.37 39,611,385.79
III. Impairment provision
1. Balance at period-beginning
2.Increased amount of the period
(1) Withdrawal
3.Decreased amount of the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period -end 97,351,492.42 15,634,697.59 - 112,986,190.01
2.Book value at period-beginning 99,482,305.36 15,843,720.25 115,326,025.61
(2) Investment property adopted fair value measurement mode
□ Applicable √Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book value Reason
Other notes
56
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
19. Fixed assets
(1) List of fixed assets
In RMB
Electronic and office
Items House and Buildings Machinery equipment Vehicles Total
equipment
I. Original book
value：
1. Opening balance 89,165,656.22 633,299,247.37 8,924,256.63 15,777,854.39 747,167,014.61
2.Increased
amountof the 0 5,721,170.96 0.00 34,223.94 5,755,394.90
period
（1）Purchase 5,721,170.96 34,223.94 5,755,394.90
（2）Transfer of
project under
Construction
（3）Increased
fromenterprise
merger
—-Into the
investment 0 0
properties
3.Decreased amount
0.00 19,182,856.12 0.00 0.00 19,182,856.12
of the period
（1）Disposal
19,182,856.12 19,182,856.12
orscrap
4.Closing balance 89,165,656.22 619,837,562.21 8,924,256.63 15,812,078.33 733,739,553.39
II. Accumulative
depreciation
1.Opening balance 25,974,085.30 376,877,571.47 7,159,133.06 11,312,363.07 421,323,152.90
2.Increased
amountof the 1,032,800.08 12,002,355.97 1,457,973.25 1,933,992.46 16,427,121.76
period
（1）Withdrawal 1,032,800.08 12,002,355.97 1,457,973.25 1,933,992.46 16,427,121.76
—Into the
investment 0 0
properties
57
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
3.Decreased
amountof the 0.00 19,070,085.16 0.00 0.00 19,070,085.16
period
（1）Disposalor
19,070,085.16 19,070,085.16
scrap
4.Closing balance 27,006,885.38 369,809,842.28 8,617,106.31 13,246,355.53 418,680,189.50
III. Depreciation
reserves
1. Opening
balance
2.Increased
amount of the period
（1）Withdrawal
3.Decreased
amount of the period
（1）Disposalor
scrap
4.Closing balance
IV. Book Value
1.Closing book value 62,158,770.84 250,027,719.93 307,150.32 2,565,722.80 315,059,363.89
2.Opening book
63,191,570.92 256,421,675.90 1,765,123.57 4,465,491.32 325,843,861.71
value
(2) List of temporarily idle fixed assets
In RMB
Accumulative Impairment
Items Original book value Book value Notes
depreciation provision
(3) Fixed assets leased in from financing lease
In RMB
Accumulative
Items Original book value Impairment provision Book value
depreciation
58
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(4) Fixed assets leased out from operation lease
In RMB
Items
Machinery equipment 41,913,560.74
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Buildings and constructions 42,288,815.25 Waiting for final acceptance
Other notes
20. Construction in progress
(1) List of construction in progress
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Replacement of
4,045,781.97 4,045,781.97 2,252,455.05 2,252,455.05
equipment
Other 130,580.87 130,580.87 186,377.38 186,377.38
Total 4,176,362.84 4,176,362.84 2,438,832.43 2,438,832.43
(2) Changes of significant construction in progress
In RMB
Of
Amount Proporti which：
Accumul
that on The Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name of Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
items balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
Capacity 2,252,45 1,729,01 Loans of
expansion 5.05 1.54 financial
59
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
of institutio
air-conditi ns
oner
Loans of
186,377. financial
Other 8,518.87
38 institutio
ns
2,438,83 1,737,53
Total -- -- --
2.43 0.41
(3) List of the withdrawal of the impairment provision of the construction in progress
In RMB
Items Withdrawn amount Reason
Other notes
21. Engineering material
In RMB
Items Closing balance Opening balance
Other notes：
22. Liquidation of fixed assets
In RMB
Items Closing balance Opening balance
Other notes：
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
60
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
25. Intangible assets
(1) Information
In RMB
Items Land use right Patent Non-patents Total
I. Total original book value
1. Opening balance 15,768,620.49 15,768,620.49
2. Increase in the reporting period
（1）Purchase
（2）Internal R&D
（3）Increase fromenterprise combination
—Into the investment properties 0 0
3.Decrease in thereporting period
（1）Disposal
4.Closing balance 15,768,620.49 15,768,620.49
II. Total accoruedamortization
1.Opening balance 4,072,315.23 4,072,315.23
2.Increased in the reporting period
（1）Withdrawal 156,161.40 156,161.40
—Into the investment properties 0 0
3.Decrease in the reporting period
（1）Disposal
4.Closing balance 4,228,476.63 4,228,476.63
III. Impairment provision
1.Opening balance
2.Increases in the reporting period
（1）Withdrawal
3.Decrease in the reporting period
（1）Disposal
4.Closing balance
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
IV. Book value
1.Book value of theperiod-end 11,540,143.86 11,540,143.86
2.Book value of theperiod-begin 11,696,305.26 11,696,305.26
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.
(2) Details of fixed assets failed to accomplish certification of land use right
In RMB
Items Book value Reason
Other notes：
26. R&D expenses
In RMB
Opening Closing
Items Increase Decrease
balance balance
Other notes
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
（2）Goodwill Impairment provision
In RMB
Items Opening balance Increase Decrease Closing balance
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes
28. Long-term unamortized expenses
In RMB
Items Opening balance Increase Amortization Decrease Closing balance
62
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
amount
83 Aluminum machine
1,962,087.22 691,705.36 1,270,381.86
entry fee
96 Aluminum machine
509,501.43 35,546.64 473,954.79
technology transfer fee
Total 2,471,588.65 727,252.00 1,744,336.65
Other notes
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
12,112,504.63 1,816,875.69 12,112,504.63 1,816,875.69
provision
Total 12,112,504.63 1,816,875.69 12,112,504.63 1,816,875.69
(2) Deferred income tax liabilities had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In 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
Items
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 1,816,875.69 1,816,875.69
(4) List of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
63
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Deductible temporary difference 13,427,252.17 13,427,252.17
Deductible losses 329,995,380.72 329,995,380.72
Total 343,422,632.89 343,422,632.89
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
Year Closing balance Opening balance Notes
2017 197,428,928.73 197,428,928.73
2018 25,332,418.05 25,332,418.05
2019 98,496,222.54 98,496,222.54
2020 7,561,009.01 7,561,009.01
2021 1,176,802.39 1,176,802.39
Total 329,995,380.72 329,995,380.72 --
Other notes：
30. Other non-current assets
In RMB
Items Closing balance Opening balance
Advance purchase of long-term assets 6,908,228.33 9,240,209.19
Total 6,908,228.33 9,240,209.19
Other notes：
31. Short-term loans
(1) Category of short-term loans
In RMB
Items Closing balance Opening balance
Mortgage loan 2,500,000.00 2,500,000.00
Guarantee loan 202,000,000.00 202,000,000.00
Credit loan 80,000,000.00 20,000,000.00
Total 284,500,000.00 224,500,000.00
Notes of short-term loans category
64
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of
which the situation of the significant overdue but not return short-term borrowings as follows:
In RMB
Borrower Closing balance Borrowing rate Overdue time Overdue rate
Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
In RMB
Items Closing balance Opening balance
Other notes:
33. Derivative financial liabilities
□ Applicable √ Inapplicable
34. Notes payabl
In RMB
Items Closing balance Opening balance
Bank acceptance bill 425,710,000.00 718,560,000.00
Total 425,710,000.00 718,560,000.00
The total amount of the due but not pay notes payable at the period-end was of RMB 000.
35. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Within 1 year 178,797,185.90 185,057,014.26
1-2 years 550,471.95 550,471.95
2-3 years 2,527,491.73 2,527,491.73
Over 3 years 8,147,612.85 5,233,507.51
Total 190,022,762.43 193,368,485.45
65
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(2) Notes of the accounts payable aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Other notes:
36. Advance from customers
(1) List of advance from customers
In RMB
Items Closing balance Opening balance
Within 1 year 2,239,303.12 8,453,280.37
1-2 years 109,280.19 492,125.78
2-3 years 34,866.60 34,866.60
Over 3 years 145,853.56 145,853.56
Total 2,529,303.47 9,126,126.31
(2) Significant advance from customers aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
In RMB
Items Amount
Other notes:
37. Payroll payable
(1) List of Payroll payable
In RMB
Items Opening balance Increase Decrease Closing balance
Short-term compensation 1,589,014.02 32,736,835.37 32,075,462.33 2,250,387.06
Post-employment benefits - defined
1,040,798.52 5,095,797.87 4,586,967.16 1,549,629.23
contribution plans
Dismissal welfare 3,363,195.80 3,363,195.80
Total 2,629,812.54 41,195,829.04 40,025,625.29 3,800,016.29
66
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(2) List of Short-term salary
In RMB
Items Opening balance Increase Decrease Closing balance
(1)Salary, bonus, allowance and
804,210.48 25,227,607.93 25,003,431.52 1,028,386.89
subsidy
(2)Employee benefits 1,641,475.74 1,639,975.74 1,500.00
(3) Social insurance expenses 96,254.84 2,312,848.91 2,084,134.34 324,969.41
Including: medical insurance
71,138.21 2,029,789.80 1,816,664.67 284,263.34
premium
Work-related injury insurance
8,165.84 188,699.28 183,297.08 13,568.04
premium
Maternity insurance premium 16,950.79 94,359.83 84,172.59 27,138.03
(4) Housing fund 356,102.00 3,050,832.00 3,019,945.65 386,988.35
(5) Labor union expenditures
and employee education 332,446.70 490,501.59 314,405.88 508,542.41
expenses
8. Other short-term salary 13,569.20 13,569.20
Total 1,589,014.02 32,736,835.37 32,075,462.33 2,250,387.06
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
Basic endowment
889,602.65 4,930,238.78 4,437,850.80 1,381,990.63
insurance premium
Unemployment insurance
151,195.87 165,559.09 149,116.36 167,638.60
premium
Total 1,040,798.52 5,095,797.87 4,586,967.16 1,549,629.23
Other notes：
38. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 624,781.08 73,009.55
Enterprise income tax -196,278.30 134,270.95
Individual income tax 672,571.51 1,005,278.13
Urban maintenance and construction tax 3,158,297.77 3,119,147.99
Business tax 490,583.43 393,030.84
67
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Educational surtax 2,018,882.33 1,988,736.03
property tax 3,727,900.64 3,727,900.64
Land royalities 1,808,215.20
Other taxes and surcharges 5,946,793.55 3,913,601.37
Total 16,443,532.01 16,163,190.70
Other notes：
39. Interest payable
In RMB
Items Closing balance Opening balance
Particulars of significant overdue unpaid interes：
In RMB
Unit Overdue amount Overdue reason
Other notes:
40. Dividends payable
In RMB
Items Closing balance Unpaid/un-carry-over reason
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Within 1 year 34,722,137.29 36,135,896.36
1-2 years 1,238,802.40 1,238,802.40
2-3 years 480,300.00 480,300.00
Over 3 years 2,838,889.77 2,838,889.88
Total 39,280,129.46 40,693,888.64
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
68
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Other notes:
42. Liabilities classified as holding for sale
In RMB
Items Closing balance Opening balance
Other notes:
43. Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term loans due within 1 year 53,400,000.00 36,100,000.00
Total 53,400,000.00 36,100,000.00
Other notes:
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Changes on short term bonds payable:
In RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Other notes:
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Credit loans 24,490,000.00 48,590,000.00
Total 24,490,000.00 48,590,000.00
Notes ：
Other notes，including interest rate range：
69
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
46. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual
capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Other notes:
48. Long term payroll payable
(1) List of long term payroll payable
In RMB
Items Closing balance Opening balance
70
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Plan assets:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Net liabilities (net assets) of defined benefit plans
In RMB
Items Amount of the Current Term Amount of the Previous Term
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
49. Special payable
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Other notes:
50. Accrued liabilities
In RMB
Items Closing balance Opening balance Formation reasons
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Items involved in government subsidies:：
In RMB
Amount of newly Amount accrued Related to the
Items Opening balance Other changes Closing balance
subsidy in non-business assets/income
Other notes:
71
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
52. Other non-current liabilities
In RMB
Items Closing balance Opening balance
Other notes:
53. Share capital
In RMB
Increase ("+") /decrease ("-") for the current year
Opening Share Closing
balance Issuance of converted from balance
Share donation Others Sub-total
new shares public reserve
funds
Total shares 119,375,000.00 0.00 0.00 0.00 0.00 0.00 119,375,000.00
Oter notes
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end (2) Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening balance Increase Decrease Closing balance
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
In ：RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 344,407,741.07 344,407,741.07
Other capital reserves 614,167,353.22 614,167,353.22
Total 958,575,094.29 958,575,094.29
Other notes, including changes and reason of change:
72
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
56. Treasury stock
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
Reporting period
Less：Amount
transferred
into profit and
Amount loss in the After-tax After-tax
Opening Less： Closing
Items incurred current period attribute to attribute to
balance Income tax balance
before that recognied the parent minority
expenses
income tax into other company shareholder
comprehensive
income in
prior period
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
hedging gains and losses transfer into arbitraged items:
58. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
56,724,000.00 56,724,000.00
reserves
Discretionary surplus
68,962,000.00 68,962,000.00
reserves
Total 125,686,000.00 125,686,000.00
Other note, including changes and reason of change
73
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
60. Retained profits
In RMB
Items Amount of the Current Term Amount of the Previous Term
Opening balance of retained profits after
-935,253,002.64 -1,015,153,268.99
adjustments
Add: Net profit attributable to owners of the
11,418,319.36 -1,176,802.39
Parent company
Closing retained profits -923,834,683.28 -1,016,330,071.38
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
61. Revenue and Cost of Sales
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Income Cost Income Cost
Main business 503,087,025.50 411,899,437.65 426,970,591.77 355,926,496.01
Other business 46,987,232.34 44,641,497.15 41,206,700.11 38,525,651.32
Total 550,074,257.84 456,540,934.80 468,177,291.88 394,452,147.33
62. Business tax and surcharges
In RMB
Items Amount of the Current Term Amount of the Previous Term
Urban maintenance and construction tax 1,875,078.50 927,815.98
Educational surtax 882,957.36 494,062.79
House tax 874,874.27
Business tax 3,636.58 77,605.24
Other 822,603.29
Total 4,459,150.00 1,499,484.01
Other notes:
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
63. Sales expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 2,887,786.88 1,990,950.83
Depreciation costs 32,592.77 32,025.64
Office costs 103,780.01 123,985.01
Loading and unloading expenses 13,646.99
Transportation cost 3,135,452.31 3,672,205.43
Insurance premium 40,746.56 35,884.13
Operating funds 7,397.70 10,205.80
Exhibition fees 80,776.70 32,715.57
Advertising expenses 100,164.87 26,600.00
Travel expenses 669,615.71 636,794.69
Sale service fees 763,063.83 794,896.71
Repair charges 2,899,469.01 3,244,922.22
Warehousing custodian fees 1,580,550.42 1,342,686.29
Other expenses 57,439.23 333,884.93
Total 12,358,836.00 12,291,404.24
Other notes:
64. Administrative expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 25,278,939.52 15,276,005.52
Depreciation costs 6,998,453.47 2,169,131.93
Office costs 349,863.66 570,834.88
Water and electric charge
Travel expenses 458,888.14 309,697.62
Transportation cost 115,461.79 45,211.30
Insurance premium 10,915.68 5,398.59
Repair charges 1,146,810.29 723,998.55
Consumption of goods and materials 346,813.37 328,172.92
Technological development expenses 5,548,061.06 5,275,038.66
Technological transfer fees 1,378,061.53 1,284,863.67
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Taxes 0 2,062,876.53
Amortization of intangible assets 365,184.06 365,184.06
Entertainment expenses 165,266.91 162,536.00
Conference fees 4,000.00 86,094.22
Intermediary service expenses 629,874.75 738,601.23
Board meeting fees 96,348.77 39,499.88
Other 3,751,074.51 7,001,809.46
Total 46,644,017.51 36,444,955.02
Other notes：
65. Financial expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest expenses 19,436,793.78 17,843,846.03
Less: Interest income 29,113.82 2,464,248.32
Gains or losses on exchange 83,667.69 -115,884.16
Other -874,278.16 757,378.85
Total 18,617,069.49 16,021,092.40
Other notes:
66. Asset impairment loss
In RMB
Items Amount of the Current Term Amount of the Previous Term
I. Bad debt loss 1,492,613.98 -255,000.99
Total 1,492,613.98 -255,000.99
Other notes
67. Gains on the changes in the fair value
In RMB
Source Amount of the Current Term Amount of the Previous Term
Other notes
68. Investment income
In RMB
76
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Items Amount of the Current Term Amount of the Previous Term
Long-term equity investment income
1,994,582.10 1,216,436.70
calculated by equity method
Total 1,994,582.10 1,216,436.70
Other notes：
69. Other income
In RMB
Source Amount of current period Amount of previous period
70. Non-operating gains
In RMB
Amount of the Current Term Amount of the Previous Term Recorded in the amount of the
Items
non-recurring gains and losses
Total gains from disposal of
200,962.58
non-current assets
Government Subsidy 36,900.00 449,200.00
Other 205,685.17 10,309.47
Total 443,547.75 459,509.47
Government subsidies recorded into current profits and losses：
In RMB
Whether the
impact of Amount of Amount of
Whhether Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income
Reason the current
subsidies -related
profit and period period
loss
Recruitment
subsidy of
Humanreso
urce and
social
bureau
industrial
enterprises
The funds for
international
77
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
market
development
Industrial
supporting 36,900.00 449,200.00
funds
Special funds
of foreign
trade and
economic
development
Other
Total -- -- -- -- -- 36,900.00 449,200.00 --
Other notes：
71. Non-operational expenditures
In RMB
Items Amount of the Current Term Amount of the Previous Term Carried to current contingent
gain/loss
Total loss from disposal of
142,770.96
non-current assets
Other 24,387.14 318,470.87
Total 167,158.10 318,470.87
Other notes：
72. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Current income tax expense 600,586.60 300,493.66
Total 600,586.60 300,493.66
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items June 30, 2017
Total profit 12,232,607.81
78
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Income tax expenses 600,586.60
Oter notes
73. Other comprehensive income
Refer to the notes
74. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest income 86,602.67 2,177,892.38
Other 8,468,864.10 2,394,286.13
Total 8,555,466.77 4,572,178.51
Other notes：
(2) Other cash paid related to operation
In RMB
Items Amount of the Current Term Amount of the Previous Term
Operation fees such as freight,
9,411,628.27 4,032,335.96
warehousing fees
Administrative expenses such as office
6,652,129.80 3,662,631.23
expenses and traveling expenses
Others 14,562,818.38 1,593,360.76
Total 30,626,576.45 9,288,327.95
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash paid related to investment
79
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(5) Other cash received related to financing
In RMB
Items Amount of the Current Term Amount of the Previous Term
Financial note discount received 548,004,868.94 1,338,108,850.64
Total 548,004,868.94 1,338,108,850.64
Statement on other cash received related to financing
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payment of due financing notes 554,303,615.40 1,051,057,474.94
Decrease of note deposit 112,867,525.61 38,416,143.30
Total 667,171,141.01 1,089,473,618.24
Other notes：
75. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
In RMB
Items Amount of the Current Amount of the Previous
Term Term
1. Net profit adjusted to cash flows from operating activities -- --
Net profits 11,632,021.21 8,780,191.51
Add：Provision for assets impairment 1,492,613.98 -255,000.99
Depreciation of fixed assets, oil and gas assets and consumable biological
18,527,934.70 16,439,201.10
assets
Amortization of intangible assets 365,184.06 365,184.06
Amortization of Long-term deferred expenses 727,252.00 727,251.60
Loss on disposal of fixed assets, intangible assets and other long-term
142,770.96
deferred assets
Financial expenses ("-" for income) 19,057,069.49 16,021,092.40
Investments losses ("-" for gains) -1,994,582.10 -1,216,436.70
Decreases in inventories ("-" for increases) 46,514,669.20 -7,793,356.21
Decreases in operating payables ("-" for increases) -51,840,966.48 53,946,293.67
Increases in operating payables ("-" for decreases) 18,511,127.89 -25,074,682.65
Net cash flows from operating activities 63,135,094.91 61,939,737.79
80
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2. Investing and financing activities that do not involving cash receipts
-- --
and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 167,499,879.38 116,473,397.62
Less: Opening balance of cash 273,768,758.46 23,643,515.81
Net increase in cash and cash equivalents -106,268,879.08 92,829,881.81
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Notes:
(3) Net Cash receive of disposal of the subsidiary
In RMB
金额
Of which --
Of which --
Of which --
Notes:
(4) Cash and cash equivalents
In RMB
Items Closing balance Opening balance
I.Cash 167,499,879.38 273,768,758.46
Including ：Cash on hand 24,628.87 31,205.34
Bank deposit on demand 167,475,250.51 273,737,553.12
III. Closing balance of cash and cash
167,499,879.38 273,768,758.46
equivalents
81
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Notes:
76. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
77. The assets with the ownership or use right restricted
In RMB
Items Closing book value Restricted reason
Provide a guarantee for issuance of bank
Monetary capital 127,778,538.50
acceptance bills
Total 127,778,538.50 --
Notes:
78. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Including :USD 456.27 6.9688 3,179.66
Notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √Not applicable
82
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
79. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:
80.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Pruchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Other notes：
(2) Combined cost and goodwill
In RMB
Combined cost
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Contingent liability of acquiree undertaken by business merger
Other notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reorting period
□ Yes √ No
83
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities
of the acquiree at acquisition date or closing period of the merge
(6) Other notes:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Proportion of Combination basis of during the during the
Name Basis to the period to the
the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Notes:
(2) Combination cost
In RMB
Combination cost
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the merged party on the date of consolidatio
In RMB
Combination date Last closing period
Contingent liabilities of the combined party undertaken in combination
Other notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
84
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Proportion of
Main
Registration shareholding
Name operating Nature of business Way of gaining
place Indirectl
place Directly
y
Production and
Air Conditioner Co. Chongqing Chongqing sale of automotive 100.00% Investment
air-conditioners
Domestic sales of Business
motorcycles and combination
Shanghai Jianshe Motorcycle Shanghai Shanghai 51.00%
the relevant under common
accessories control
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:
85
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(2) Significant not wholly owned subsidiary
In 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
Shanghai Jianshe
49.00% 213,701.85 1,433,987.59
Motorcycle Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Closing balance Opening balance
Non-curr Non-curr
Non-curr Current Total Non-curr Current Total
Name Current Total ent Current Total ent
ent Liabilitie Liabilitie ent Liabilitie Liabilitie
assets assets Liabilitie assets assets Liabilitie
assets s s assets s s
s s
Shanghai
Jianshe
8,711,62 7,174,15 15,885,7 12,959,2 12,959,2 5,982,24 7,443,92 13,426,1 10,935,7 10,935,7
Motorcy
9.61 8.45 88.06 82.77 82.77 1.44 8.95 70.39 91.32 91.32
cle Co.,
Ltd.
In RMB
June 30, 2017 June 30, 2016
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Shanghai
Jianshe
6,169,703.82 436,126.22 436,126.22 1,814,015.77 7,505,633.73 566,012.42 566,012.42 1,754,089.07
Motorcycle
Co., Ltd.
Other notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Other notes:
86
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
In RMB
Other notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding ratio (%) Accounting
treatment
Name of joint methods for the
Domicile of
venture or Registered place Business nature
primary operation Directly Indirectly investments in
associate
joint ventures or
associates
Production and
Chongqing sales of
Pingshan TK motorcycles and 49.00% Equity method
Carburettor Co., the relevant
Ltd. Chongqing Chongqing accessories
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
（2）Major joint ventures and associates
In RMB
Closing balance/June 30, 2017 Opening balance/June 30, 2016
Current assets 168,577,815.92 171,159,279.38
Including：Cashand cash equivalents 102,666,236.99 98,235,139.01
Not-current assets 23,137,339.55 24,433,588.43
Total assets 191,715,155.47 195,592,867.81
Current Liabilities 26,082,019.34 25,841,618.24
Total Liabilities 26,082,019.34 25,841,618.24
Equity attributable to the shareholders of
165,633,136.13 169,751,249.57
parent company
87
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Operating income 64,818,695.71 60,652,899.25
Financial expenses -435,670.01 -724,443.07
Income tax expenses 1,007,753.29 557,822.50
Net profit 4,070,575.72 2,482,523.87
Total comprehensive income 4,070,575.72 2,482,523.87
Dividends received from joint ventures for
4,000,000.00 3,400,000.00
the current year
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/June 30, 2017 Opening balance/June 30, 2016
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2017 Opening balance/June 30, 2016
Joint venture： -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes:
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in proevious share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
88
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
4. Significant common operation
Main operating Proportion /share portion
Name plance registration Registration place Business nature
Directly Indirectly
place
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation Other notes:
Other notes
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II Inconsistent fair
-- -- -- --
valuemeasuement
89
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Registered Registered Shareholding ratio in Voting ratio in the
Name of the parent company Business nature
place capital the Company (%) Company (%)
Production and
chongqing construction mechanical Chongqin sales of
180.30 million 71.13% 71.13%
and electrical Co. Ltd. g motorcycles and
parts
Notes
The ultimate controller of the Company is
Other notes
2. Subsidiaries of the Company
See notes
90
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name of joint venture or associate Relationship with the company
Chongqing Pingshan TK Carburettor Co., Ltd.("Pingshan TK") Joint venture
Chongqing Tongsheng Machinery Co., Ltd.("Tongsheng
Original associates venture, now associates of parent company
Jianshe")
Chongqing Fuyeda Property Management Co., Ltd.("Fuyeda") Original associates venture, now associates of parent company
Other notes
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Chongqing Jianshe Industrial (Group) Co., Ltd. ("Jianshe industry ") Under the common control of the same party
China South Industries Group Finance Co., Ltd. ("South Finance Company ") Under the common control of the same party
Chongqing Changan Motor Joint Stock Limited Company ("Changan Motor ") Under the common control of the same party
Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company
Under the common control of the same party
(“Beijing Changan“)
An Joint venture a subsidiary of a controlling
Chongqing Changan Suzuki Motor Co., Ltd. ("Changan Suzuki ")
shareholder
Hebei Changan Motor Co., Ltd. ("Hebei Changan ") Under the common control of the same party
Nanjing Changan Motor Co., Ltd. ("Nanjing Changan ") Under the common control of the same party
Baoding Changan Bus Manufacturing Co., Ltd (“Baoding Changan“) Under the common control of the same party
Hefei Changan Motor Co.Ltd (“Hefei Changan’) Under the common control of the same party
Chongqing Changan Motor Customer Service Co., Ltd. ("Changan Motor Customer
Under the common control of the same party
Service ")
Chongqing Changan Automobile International Sales & Service Co., Ltd（“Changan
Under the common control of the same party
Automobile sales “）
Chongqing North Construction import and export trade co.ltd (“import and export
Under the common control of the same party
company”)
Chongqing jianshe sales co. Ltd(“the sales company”) Under the common control of the same party
Hafei Motor share company(“Hafei motor”) Under the common control of the same party
An Joint venture a subsidiary of a controlling
Changan Ford Motor Co.Ltd Harbin branch (“Changan Ford Harbin branch”)
shareholder
Harbin dongan Motor Power shares Co. Ltd(“Harbin dongan power”) Under the common control of the same party
91
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Other notes
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Occurred current Trading limit Over the trading limit Occurred in previous
Related party Content
term approved or not? term
Purchasing parts
Jianshe Machinery 27,450,000.00 80,000,000.00 No 971,500.42
and others
Purchasing parts
Import & export Co 15,250,000.00 32,000,000.00 No 42,304,131.95
and others
Lease production
Jianshe Machinery 0.00 2,500,000.00 No
site
Jianshe Industry Part test 830,000.00 2,000,000.00 No
Chongqing Jianya Part test 4,000.00 20,000.00 No
Fuyeda Transportion 254,000.00 600,000.00 No
Accepta nce of
Cbangan Group and
repairin g service 1,030,000.00 5,000,000.00 No
its Subsidiaries
Sales of goods and services
In RMB
Subjects of the related Occurred current Occurred in previous
Related parties
transactions term term
Cbangan Group and its Subsidiaries Sales of goods 91,070,000.00 181,578,578.06
Jianshe Machinery Lease storeouse 0.00
Notes
(2) Related trusteeship/contract
Lists of related trusteeship/contract
In RMB
Name of the Name of the Income
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes
Lists of entrust/contractee：
92
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
In RMB
Name eof the Name of the Charge
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes:
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Jianshe mechanical and
Workshop Equipment 1,844,995.60
electrical
The Company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Jianshe mechanical and
Workshop 1,131,405.41
electrical
Notes:
(4) Related-party guarantee
The Company was guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Vehicle air conditioner 2,000.00 August 24,2016 February 24,2017 Yes
Vehicle air conditioner 1,453.00 October 18,2016 April 18,2017 Yes
Vehicle air conditioner 1,097.00 October 18,2016 April 18,2017 Yes
Vehicle air conditioner 2,500.00 November 29,2016 May 28,2017 Yes
Vehicle air conditioner 2,500.00 December 6,2016 June 6,2017 Yes
Vehicle air conditioner 2,450.00 January 17,2017 July 17,2017 No
Vehicle air conditioner 5,000.00 August 25,2016 August 24,2017 No
Vehicle air conditioner 2,000.00 February 10,2017 August 10,2017 No
Vehicle air conditioner 1,453.00 April 7,2017 October 7,2017 No
93
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Vehicle air conditioner 1,097.00 April 11,2017 October 11,2017 No
Vehicle air conditioner 2,500.00 May 5,2017 November 5,2017 No
Vehicle air conditioner 2,500.00 June 7,2017 December 7,2017 No
Notes
The above acceptance of the controlling shareholder- Jianshe Mechanical and Electric 's guarantee has been approved
by the shareholders' general meeting. For details, please refer to the announcements published on Securities Times,
Hong Kong Commercial Daily and Cninfo website on April 28, 2017 and on May 26, 2017.
(Announcement No.2017-07and 2017-042).
(5) Inter-bank lending of capital of related parties：
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Occurred current term Occurred in previous term
(7) Rewards for the key management personnel
In RMB
Items Occurred current term Occurred in previous term
(8) Other related transactions
6. Receivable and payables due with related parties
（1）Receivables
In RMB
At end of term At beginning of term
Projects Related parties
Book balance Bad debt provision Book balance Bad debt provision
（2）Payables
In RMB
94
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Items Related party Closing book value Openting book value
7. Related party commitment
8. Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5. Other
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
As of June 30, 2017, the company does not need to discourse
95
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
In RMB
Influence number to the
Reason of unable to estimate
Items Conternt Financial position and operating
influence number
results
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Accumulative impact
items during comparison period
（2）Prospective application
Content Processing program Reason of adopting prospective application
96
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
Termination of
the business
Income tax profits
Items Income Expenses Total profit Net profit
expenses attributable to the
parent company
owner
Other notes:
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
In RMB
Items Offset during segments Total
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
97
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Accounts receivable
with provision for
bad debt made on a 1,733,09 1,728,79 1,733,0 1,728,790
100.00% 99.75% 4,307.10 100.00% 99.75% 4,307.10
portfolio with similar 7.58 0.48 97.58 .48
risk credit
characteristics basis
1,733,09 1,728,79 1,733,0 1,728,790
100.00% 99.75% 4,307.10 100.00% 99.75% 4,307.10
Total 7.58 0.48 97.58 .48
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
In RMB
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion of provision (%)
Subitem within 1 year
2-3 years 6,153.00 1,845.90 30.00%
Over 5 years 1,726,944.58 1,726,944.58 100.00%
Total 1,733,097.58 1,728,790.48
Notes of the basis of recognizing the group:
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 accrue 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 RMB0.00; the amount of the
reversed or collected part during the reporting period was of RMB 0.00.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
(3) The actual write-off accounts receivable
In RMB
98
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
The top five accounts receivable by the credit balance as at June 30, 2017 total RMB 1,561,146.14, accounting for
90.08% of total amount of balance as at June 30, 2017 of accounts receivable, and the balance as at June 30, 2017
of provision for bad debts provided correspondingly totals RMB1,561,146.14.
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Other receivables
with provision for
bad debt made on a 9,685,79 4,403,82 5,281,967 9,425,1 4,403,827 5,021,347.0
96.41% 45.47% 96.31% 46.72%
portfolio with similar 5.05 7.20 .85 74.24 .20 4
risk credit
characteristics basis
Other receivables
with insignificant
single amount and 361,125. 361,125. 361,125 361,125.3
3.59% 100.00% 0.00 3.69% 100.00%
provision for bad 35 35 .35 5
debt made on an
individual basis
99
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
10,046,9 4,764,95 5,281,967 9,786,2 4,764,952 5,021,347.0
100.00% 48.69%
Total 20.40 2.55 .85 99.59 .55 4
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other receivables Provision for bad debts Proportion of provision (%)
Subitem within 1 year
1-6 months 3,755,400.33
Subtotal within 1 year 3,755,400.33
1-2 years 1,696,186.13 169,618.61 10.00%
Over 5 years 4,234,208.59 4,234,208.59 100.00%
Total 9,685,795.05 4,403,827.20
Notes of the basis of recognizing the group:
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 accrue 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 RMB 0.00；the amount of
the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
Of which the significant write-off other accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process
from the related
100
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Current account 44,037.12 667,041.51
Petty cash and borrowings with small amount 5,407,549.34 4,523,924.14
Fully provided provision for bad debts
4,595,333.94 4,595,333.94
regarding long-term receivables and payables
Other
Total 10,046,920.40 9,786,299.59
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Top 5 of the closing
balance of the other
accounts receivable 5,132,834.93 Over 5 years 51.09% 4,244,328.04
colleted according to
the arrears party
Total -- 5,132,834.93 -- 51.09% 4,244,328.04
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
101
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets (8) The
amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other notes:
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
168,160,000.00 168,160,000.00 168,160,000.00 168,160,000.00
subsidiaries
Investments in
associates and 81,252,694.41 81,252,694.41 83,178,112.31 83,178,112.31
joint ventures
Total 249,412,694.41 249,412,694.41 251,338,112.31 251,338,112.31
（1） Investments in subsidiaries
In RMB
Provision for Balance as at June
30, 2015 of
Investee Opening balance Increase Decrease Closing balance impairment in the
provision for
period impairment
Shanghai Jianshe
Motorcycle Co., 8,160,000.00 8,160,000.00
Ltd.
Chongqing Jianshe
Automobile A/C 160,000,000.00 160,000,000.00
Co., Ltd.
Total 168,160,000.00 168,160,000.00
（2）Investments in associates and joint ventures
In RMB
Increases/decreases in the current year Balance
as at June
30, 2017
Declarati
Opening Additiona Other Closing of
Investee Changes on of cash Impairme
Balance l comprehe balance provision
in other nt Other
investmen nsive dividends
equity provision for
t income
or profits
impairme
nt
102
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
1. Joint ventures
Chongqin
g
Pingshan
83,178,11 2,074,582 4,000,000 81,252,69
TK
2.31 .10 .00 4.41
Carburett
or Co.,
Ltd.
83,178,11 2,074,582 4,000,000 81,252,69
Subtotal
2.31 .10 .00 4.41
2．Associates
83,178,11 2,074,582 4,000,000 81,252,69
Total
2.31 .10 .00 4.41
（3）Other Notes
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Major business turnover 182,250.38
Other business income 339,527,118.70 305,125,226.46 336,824,318.43 313,368,020.89
Total 339,527,118.70 305,125,226.46 336,824,318.43 313,550,271.27
Other notes：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on equity
1,994,582.10 1,216,436.70
basis
Total 1,994,582.10 1,216,436.70
6.Other
XVIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □ Not applicable
103
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
In RMB
Items Amount Notes
Non-current asset disposal gain/loss 58,191.62
Govemment subsidy recognized in current gain and loss(excluding those closely related to the
36,900.00
Company’s business and granted under the state’s policies)
Other non-business income and expenditures other than the above 181,298.03
Total 276,389.65 --
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
2. Net income on asset ratio and earning per share
In RMB
Earnings per share
Profit of the report period Net income on asset, weighted Diluted earnings per
Basic earnings per share
share
Net profit attributable to common
4.17% 0.0957 0.0957
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
4.05% 0.0933 0.0933
deducting of non-recurring
gains/losses
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 √ Notapplicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
104
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2017
XI. Documents available for inspection
I. The semi-report carrying personal signature and seal of the Chairman of the Board;
II. Financial Statements with signatures of the legal representative, the financial officer, and accounting manager.
III. All of the originals of the Company’s documents and public notices publicized by the presses designated by
China Securities Regulatory Commission in the report period;
Chongqing Jianshe Motorcycle Co., Ltd.
Board chairman:Lv Hongxian
August 29,2017
105
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