东沣科技集团股份有限公司 2017 年半年度财务报告
Dongfeng Sci-Tech Group CO., LTD
Semi-Annual Financial Report 2017
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by Dongfeng Sci-Tech Group CO., LTD
2017-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 160,265,548.01 132,970,162.23
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 80,084.75 77,884.75
Accounts paid in advance 107,838.08 18,250,328.13
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 68,070,707.68 67,805,513.40
1
东沣科技集团股份有限公司 2017 年半年度财务报告
Purchase restituted finance asset
Inventories 287,218,307.92 341,740,059.14
Divided into assets held for sale
Non-current asset due within one
333,716.08 333,716.08
year
Other current assets 9,368,662.98 19,177,045.07
Total current assets 525,444,865.50 580,354,708.80
Non-current assets:
Loans and payments on behalf
Finance asset available for sales 22,784,131.93 22,784,131.93
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 1,022,730.46
Investment property 4,774,873.63 4,831,153.75
Fixed assets 14,634,378.09 14,980,260.33
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset 16,229.01 42,133.76
Oil and gas asset
Intangible assets 1,052,848.17 1,073,407.21
Expense on Research and
1,831,791.81 641,604.82
Development
Goodwill
Long-term expenses to be
129,980.39 160,010.87
apportioned
Deferred income tax asset 775,645.41 775,645.41
Other non-current asset 91,040.00
Total non-current asset 45,999,878.44 46,402,118.54
Total assets 571,444,743.94 626,756,827.34
Current liabilities:
Short-term loans
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Financial liability measured by fair
value and with variation reckoned into
2
东沣科技集团股份有限公司 2017 年半年度财务报告
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 20,774,299.85 12,889,329.86
Accounts received in advance 188,143,498.26 243,917,918.70
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 221,277.50 1,937,682.44
Taxes payable 403,722.99 1,359,022.01
Interest payable
Dividend payable
Other accounts payable 6,201,672.38 4,476,864.40
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 215,744,470.98 264,580,817.41
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 215,744,470.98 264,580,817.41
3
东沣科技集团股份有限公司 2017 年半年度财务报告
Owner’s equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 463,681,309.55 463,681,309.55
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 76,791,550.17 76,791,550.17
Provision of general risk
Retained profit -891,092,586.76 -886,966,408.74
Total owner’s equity attributable to
355,700,272.96 359,826,450.98
parent company
Minority interests 2,349,558.95
Total owner’s equity 355,700,272.96 362,176,009.93
Total liabilities and owner’s equity 571,444,743.94 626,756,827.34
Legal Representative: Zhao Yongsheng Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 10,172,167.50 69,381,131.38
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable
Account paid in advance 5,000.33 18,240,099.06
Interest receivable
Dividends receivable
Other receivables 29,724,078.94 23,582,767.33
4
东沣科技集团股份有限公司 2017 年半年度财务报告
Inventories 287,081,113.95 341,419,337.97
Divided into assets held for sale
Non-current assets maturing within
one year
Other current assets 8,746,046.75 18,152,929.82
Total current assets 335,728,407.47 470,776,265.56
Non-current assets:
Available-for-sale financial assets 22,784,131.93 22,784,131.93
Held-to-maturity investments
Long-term receivables
Long-term equity investments 178,114,466.37 178,114,466.37
Investment property
Fixed assets 1,962,245.05 2,100,122.12
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets
Research and development costs
Goodwill
Long-term deferred expenses 117,830.39 142,798.37
Deferred income tax assets 750.00 750.00
Other non-current assets
Total non-current assets 202,979,423.74 203,142,268.79
Total assets 538,707,831.21 673,918,534.35
Current liabilities:
Short-term borrowings
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 20,506,024.52 12,777,756.02
Accounts received in advance 187,840,560.64 242,747,445.35
5
东沣科技集团股份有限公司 2017 年半年度财务报告
Wage payable 398.22 576,458.22
Taxes payable 393,513.74 1,340,388.72
Interest payable
Dividend payable
Other accounts payable 149,326,089.31 237,841,253.38
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 358,066,586.43 495,283,301.69
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 358,066,586.43 495,283,301.69
Owners’ equity:
Share capita 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 456,569,124.55 456,569,124.55
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 76,791,550.17 76,791,550.17
Retained profit -1,059,039,429.94 -1,061,045,442.06
6
东沣科技集团股份有限公司 2017 年半年度财务报告
Total owner’s equity 180,641,244.78 178,635,232.66
Total liabilities and owner’s equity 538,707,831.21 673,918,534.35
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 101,563,994.47 191,414,481.74
Including: Operating income 101,563,994.47 191,414,481.74
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 104,794,376.13 190,180,369.70
Including: Operating cost 86,769,226.19 163,182,686.63
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 7,852,986.54 12,955,210.55
Sales expenses 315,835.82 314,718.06
Administration expenses 10,548,195.52 13,829,541.30
Financial expenses -691,269.95 -101,786.84
Losses of devaluation of asset -597.99
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed
-12,933.77
with “-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed
7
东沣科技集团股份有限公司 2017 年半年度财务报告
with “-”)
Other income
III. Operating profit (Loss is listed with
-3,230,381.66 1,221,178.27
“-”)
Add: Non-operating income 30,121.27 69,070.59
Including: Disposal gains of
non-current asset
Less: Non-operating expense 7,113.04 339,948.94
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed with “-”) -3,207,373.43 950,299.92
Less: Income tax expense 8,991.27
V. Net profit (Net loss is listed with “-”) -3,207,373.43 941,308.65
Net profit attributable to owner’s of
-3,145,668.96 1,801,869.94
parent company
Minority shareholders’ gains and
-61,704.47 -860,561.29
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
(II) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
8
东沣科技集团股份有限公司 2017 年半年度财务报告
will be reclassified subsequently to profit
or loss
2. Gains or losses arising from
changes in fair value of available-for-sale
financial assets
3. Gains or losses arising from
reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion of
gains or losses arising from cash flow
hedging instruments
5. Translation differences arising
on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -3,207,373.43 941,308.65
Total comprehensive income
-3,145,668.96 1,801,869.94
attributable to owners of parent Company
Total comprehensive income
-61,704.47 -860,561.29
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share -0.004 0.003
(ii) Diluted earnings per share -0.004 0.003
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party.
Legal Representative: Zhao Yongsheng Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 99,528,159.94 180,141,392.89
Less: Operating cost 83,879,550.47 151,288,325.84
Operating tax and extras 7,838,404.44 12,822,979.94
Sales expenses 201,716.00 114,165.00
9
东沣科技集团股份有限公司 2017 年半年度财务报告
Administration expenses 5,588,635.68 8,380,621.85
Financial expenses -7,755.36 -67,570.12
Losses of devaluation of asset 4,585,185.00
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint venture
Other income
II. Operating profit (Loss is listed
2,027,608.71 3,017,685.38
with “-”)
Add: Non-operating income 0.02
Including: Disposal gains of
non-current asset
Less: Non-operating expense 21,596.61 178,654.01
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
2,006,012.12 2,839,031.37
“-”)
Less: Income tax expense
IV. Net profit (Net loss is listed with
2,006,012.12 2,839,031.37
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
10
东沣科技集团股份有限公司 2017 年半年度财务报告
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising from
changes in fair value of
available-for-sale financial assets
3. Gains or losses arising from
reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging portion of
gains or losses arising from cash flow
hedging instruments
5. Translation differences arising
on translation of foreign currency
financial statements
6. Other
VI. Total comprehensive income 2,006,012.12 2,839,031.37
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 49,648,921.18 137,650,745.69
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
11
东沣科技集团股份有限公司 2017 年半年度财务报告
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received 36.00
Other cash received concerning
9,487,446.88 8,055,810.61
operating activities
Subtotal of cash inflow arising from
59,136,368.06 145,706,592.30
operating activities
Cash paid for purchasing
commodities and receiving labor 2,657,862.72 30,339,142.70
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 8,045,025.91 10,973,577.47
Taxes paid 5,542,118.14 10,536,340.72
Other cash paid concerning
14,204,059.60 17,002,547.44
operating activities
Subtotal of cash outflow arising from
30,449,066.37 68,851,608.33
operating activities
Net cash flows arising from operating 28,687,301.69 76,854,983.97
12
东沣科技集团股份有限公司 2017 年半年度财务报告
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
1,391,915.91 1,994,960.98
intangible and other long-term assets
Cash paid for investment 25,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries
and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
1,391,915.91 26,994,960.98
activities
Net cash flows arising from investing
-1,391,915.91 -26,994,960.98
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans
Cash received from issuing bonds
Other cash received concerning 753,264.46
13
东沣科技集团股份有限公司 2017 年半年度财务报告
financing activities
Subtotal of cash inflow from financing
753,264.46
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
663,800.00 1,626,700.00
financing activities
Subtotal of cash outflow from financing
663,800.00 1,626,700.00
activities
Net cash flows arising from financing
-663,800.00 -873,435.54
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
26,631,585.78 48,986,587.45
equivalents
Add: Balance of cash and cash
126,970,834.83 84,543,677.45
equivalents at the period-begin
VI. Balance of cash and cash
153,602,420.61 133,530,264.90
equivalents at the period-end
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 48,417,004.47 125,007,492.84
services
Write-back of tax received 36.00
Other cash received concerning
16,464,467.95 17,073,078.15
operating activities
Subtotal of cash inflow arising from
64,881,472.42 142,080,606.99
operating activities
14
东沣科技集团股份有限公司 2017 年半年度财务报告
Cash paid for purchasing
commodities and receiving labor 158,077.41 20,218,504.45
service
Cash paid to/for staff and workers 2,981,492.09 6,323,092.84
Taxes paid 5,123,209.48 9,928,150.19
Other cash paid concerning
115,820,458.32 31,528,674.54
operating activities
Subtotal of cash outflow arising from
124,083,237.30 67,998,422.02
operating activities
Net cash flows arising from operating
-59,201,764.88 74,082,184.97
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
7,199.00 10,788.00
intangible and other long-term assets
Cash paid for investment 25,000,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
7,199.00 25,010,788.00
activities
Net cash flows arising from investing
-7,199.00 -25,010,788.00
activities
III. Cash flows arising from financing
15
东沣科技集团股份有限公司 2017 年半年度财务报告
activities
Cash received from absorbing
investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
663,800.00 1,626,700.00
financing activities
Subtotal of cash outflow from financing
663,800.00 1,626,700.00
activities
Net cash flows arising from financing
-663,800.00 -1,626,700.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-59,872,763.88 47,444,696.97
equivalents
Add: Balance of cash and cash
63,381,803.98 22,671,791.13
equivalents at the period-begin
VI. Balance of cash and cash
3,509,040.10 70,116,488.10
equivalents at the period-end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
This Period
Owners’ equity attributable to parent company
Other
Item Less: Other Provisio Minorit Total
equity instrument Reason
Share Capital Invento compre Surplus n of Retaine y owners’
able interests equity
capital Prefer Perpet reserve ry hensive reserve general d profit
reserve
red ual Other shares income risk
stock capita
16
东沣科技集团股份有限公司 2017 年半年度财务报告
l
securi
ties
706,32 -886,96
I. Balance at the 463,681 76,791, 2,349,5 362,176
0,000. 6,408.7
end of the last year ,309.55 550.17 58.95 ,009.93
00 4
Add: Changes
of accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at the 706,32 463,681 76,791,
-886,96
2,349,5 362,176
beginning of this 0,000. 6,408.7
,309.55 550.17 58.95 ,009.93
year 00 4
III. Increase/
Decrease in this -4,126,1 -2,349,5 -6,475,7
year (Decrease is 78.02 58.95 36.97
listed with “-”)
(i) Total -3,145,6 -3,145,6
comprehensive
68.96 68.96
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
17
东沣科技集团股份有限公司 2017 年半年度财务报告
general risk
provisions
3. Distribution for
owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
-980,50 -2,349,5 -3,330,0
(VI) Others
9.06 58.95 68.01
IV. Balance at the 706,32 463,681 76,791,
-891,09
355,700
end of the report 0,000. 2,586.7
,309.55 550.17 ,272.96
period 00 6
Last Period
In RMB
Last Period
Owners’ equity attributable to the parent Company
Other
equity instrument
Minorit
Item Less: Other Provisio Total
Perpet Reason y
Share Capital Invento compre Surplus n of Retaine interest owners’
ual able
capital Prefer reserve ry hensive reserve general d profit equity
capita reserve s
red Other shares income risk
l
stock
securi
ties
18
东沣科技集团股份有限公司 2017 年半年度财务报告
706,32 -890,72
I. Balance at the 459,871 76,791, 18,754, 371,010
0,000. 7,215.2
end of the last year ,788.64 550.17 592.06 ,715.62
00 5
Add: Changes
of accounting
policy
Error
correction of the
last period
Enterprise
combine under the
same control
Other
II. Balance at the 706,32 459,871 76,791,
-890,72
18,754, 371,010
beginning of this 0,000. 7,215.2
,788.64 550.17 592.06 ,715.62
year 00 5
III. Increase/
Decrease in this 3,801,7 1,801,8 -860,56 4,743,0
year (Decrease is 00.00 69.94 1.29 08.65
listed with “-”)
(i) Total 1,801,8 -860,56 941,308
comprehensive
69.94 1.29 .65
income
(ii) Owners’ 3,801,7 3,801,7
devoted and
00.00 00.00
decreased capital
1.Common shares 3,801,7 3,801,7
invested by
00.00 00.00
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4 Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
19
东沣科技集团股份有限公司 2017 年半年度财务报告
3. Distribution for
owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at the 706,32 463,673 76,791,
-888,92
17,894, 375,753
end of the report 0,000. 5,345.3
,488.64 550.17 030.77 ,724.27
period 00 1
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
equity instrument
Other Total
Item Share Less: Retaine
Perpetu Capital comprehe Reasonab Surplus
Inventory owners’
capital Preferre al reserve nsive le reserve reserve d profit
capital shares equity
Other income
d stock
securiti
es
I. Balance at the 706,320, 456,569,1 76,791,55 -1,061,0 178,635,2
20
东沣科技集团股份有限公司 2017 年半年度财务报告
end of the last year 000.00 24.55 0.17 45,442. 32.66
06
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 706,320, -1,061,0
456,569,1 76,791,55 178,635,2
beginning of this 45,442.
000.00 24.55 0.17 32.66
year 06
III. Increase/
Decrease in this 2,006,0 2,006,012
year (Decrease is 12.12 .12
listed with “-”)
(i) Total 2,006,0 2,006,012
comprehensive
12.12 .12
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
21
东沣科技集团股份有限公司 2017 年半年度财务报告
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at the 706,320, -1,059,0
456,569,1 76,791,55 180,641,2
end of the report 39,429.
000.00 24.55 0.17 44.78
period 94
Last period
In RMB
Last period
Other
equity instrument
Other Total
Item Share Less: Retaine
Perpetu Capital comprehe Reasonab Surplus
Inventory owners’
capital Preferre al reserve nsive le reserve reserve d profit
shares equity
capital Other income
d stock
securiti
es
-1,063,1
I. Balance at the 706,320, 452,767,4 76,791,55 172,685,4
93,524.
end of the last year 000.00 24.55 0.17 49.84
88
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
22
东沣科技集团股份有限公司 2017 年半年度财务报告
II. Balance at the 706,320, -1,063,1
452,767,4 76,791,55 172,685,4
beginning of this 93,524.
000.00 24.55 0.17 49.84
year 88
III. Increase/
Decrease in this 3,801,700 2,839,0 6,640,731
year (Decrease is .00 31.37 .37
listed with “-”)
(i) Total 2,839,0 2,839,031
comprehensive
31.37 .37
income
(ii) Owners’ 3,801,700 3,801,700
devoted and
.00 .00
decreased capital
1.Common shares 3,801,700 3,801,700
invested by
.00 .00
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
23
东沣科技集团股份有限公司 2017 年半年度财务报告
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at the 706,320, -1,060,3
456,569,1 76,791,55 179,326,1
end of the report 54,493.
000.00 24.55 0.17 81.21
period 51
III. Company profile
1. Registered place, organization structure and head office of the Company
Dongfeng Sci-Tech Group CO., LTD (Hereinafter referred to as " Dongfeng Group " or the "the Company") was formerly known as
Chengde Dixian Knitting Co., Ltd., and was reorganized on 3 November 1999 by sponsorship, approved by the People's Government
of Hebei Province with the issue of Ji Gu Ban [1999] No.: 36 with license of the business corporation obtained from Hebei
Administration for Industry & Commerce; registered capital while established amounting as RMB 100,000,000, and RMB 1.00 per
share. Among the abovementioned, RMB 85.10 million contributed by Wang Shuxian, representing 7.56 percent of the registered
capital; Wang Zhengsong invested RMB 5.4444 million with 5.44 percent in total registered capital presented; Chengde Longfeng
Cosmetics Co., Ltd. contributed RMB 0.9456 million, a 0.95 percent in registered capital and RMB 0.9456 million contributed by
Chengde Xiabancheng Hongxing Plastics Products Plant with 0.95 percent in registered capital presented.
On 29 August 2000, according to the Zheng Jian Fa Xing Zi [2000] No.: 121 issued by the China Securities Regulatory Commission,
the Company issued 100,000,000 domestically listed foreign shares in Shenzhen Stock Exchange dated 19 September 2000; and
excised the over-allotment option to increase issuing 15,000,000 B shares from September 29, 2000 to October 29, 2000. The
registered capital of the Company after the issuance of B shares was RMB 215,000,000 with one Yuan of face value per share.
According to the resolution of the shareholder’s general meeting on March 12, 2002, the Company allotted 43,000,000 bonus shares
to all of the shareholders according to the proportion of 2 free shares for every 10 shares, and meanwhile increased 107,500,000
shares to all of the shareholding by transferring from capital reserve according to 5 shares free for every 10 shares. The registered
capital of the company was changed to RMB 365,500,000 after it allotted bonus shares and increased by transferring.
According to the resolution of the shareholder’s general meeting on July 22, 2003, the Company allotted 73,100,000 bonus shares to
all of the shareholders according to the proportion of 2 free shares for every 10 shares, and the registered capital of the company was
changed to RMB 438,600,000 after such bonus shares were allotted.
On March 11, 2004, approved by the Ministry of Commerce of the People's Republic of China, the Company was allowed to be
changed as a foreign investment limited liability company.
In July 2004, the Company increased 150,000,000 B shares directionally, during which 91,300,000 shares were subscribed in HK$,
24
东沣科技集团股份有限公司 2017 年半年度财务报告
and another 58,700,000 shares were subscribed in RMB, upon check by China Securities Regulatory Commission with the issue
[2004] No.101.
According to the resolution of the shareholder’s general meeting on June 8, 2006, the Company allotted 117,720,000 bonus shares to
all of the shareholders according to the proportion of 2 free shares for every 10 shares,
On August 4, 2008, according to the judgment ruled by Shenzhen Intermediate People's Court, 112,324,800 sponsor shares held by
Wang Shuxian was compensated to Chen Rong for 45,491,544 Yuan, and on August 15, 2008, 96,000,000 sponsor shares held by
Wang Shuxian was compensated to Chen Rong for 38,880,000 Yuan according to the judgment ruled by Dalian Intermediate
People's Court.
On November 11, 2009, according to “reply to the approval of capital increase, and change of share as well as name of Chengde
Dixian Knitting Co., Ltd” with No.143 [2009] by Bureau of Commerce of Hebei Province, it agreed that the Company increased
150,000,000 domestically listed foreign shares in 2004 and allotted 2 bonus shares free for every 10 shares in 2006; and it agreed that
208,324,800 shares of Dixian stock held by Wang Shuxian was changed to Chen Rong ; as well as the name of the Company changed
to Chengde Dalu Co., Ltd. Total share capital of the Company was 706,320,000 shares and the registered capital of the Company was
706,320,000 Yuan after the Company’s share increased and allotted,
On 23 August 2011, the Company received the enterprise corporate business license issued from Chengde Administration for
Industry and Commerce, register serial was No.: 130000400001225; registered capital and paid-up capital was 706.32 million Yuan
with corporate type of limited liability company (Sino-foreign joint venture, listed)
On April 6, 2012, Chen Rong, shareholder of Company, signed a share transfer agreement with Mr. Wang Dong for transferred all of
the 208,324,800 shares held by himself (accounting for 29.49% of total capital of the Company) to Mr. Wang Dong; After equity
transfer the above mentioned, capital contribution proportion of the shareholders of the Company were: 208.3248 million Yuan
invested by Wang Dong, representing 29.49 percent of the register capital; 18517651 Yuan contributed by Hebei Chengde Northern
Industrial Corporation, representing 2.62 percent of the register capital; 13327891 Yuan invested by Wang Zhengsong, a 0.33 percent
in register capital; 2314829 Yuan invested by Chengde Xiabancheng Hongxing Plastics Products Plant, a 0.33 percent in register
capital and 461.52 million Yuan contributed by shareholders of domestically listed foreign shares, representing 65.34 percent of the
register capital.
On 19 September 2012, being verified and approved by Chengde Administration for Industry and Commerce, the Company’s name
changed asDongfeng Sci-Tech Group CO., LTD.
Over the years of bonus issue, rights issue and capitalization, up to 31st December 2014, the issued shares totally amounting to
706.32 million shares, registered capital of the Company was 706.32 million Yuan; registered address: Xiabancheng Town, Chengde
County, Hebei Province; HQ: Xiabancheng Town, Chengde County, Hebei Province. The Company has no parent company and Mr.
Wang Dong is the first largest shareholder of the Company and also is the controller of the Company.
On 15 May 2017, approved by Administration Bureau for Industry and Commerce of Chengde City, name of the Company agreed to
changed as Dongfeng Sci-Tech Group CO., LTD
(II) Business scope
R&D and sales of new energy, and new material products as well as technology promotion and technical service; scientific research
of modern eco-agriculture and technology promotion service, wholesales of eco-agriculture products; import and export trade of
25
东沣科技集团股份有限公司 2017 年半年度财务报告
goods and technology; Engage in the real estate development and management in the scope approved by the qualification certificates;
property management. (Projects need to be approved according to law can only carry out the operating activities after being approved
by relevant departments).
(III) Business nature and main operating activities of the Company
Dongfeng Group belongs to the development operation of real estate business, subsidy engaged in commerce trading, property
management and agricultural fariming and breeding etc.
(IV) Report approval for the financial statement
The statement has been approved by all Directors of the Company dated 28 August 2017 for reporting.
Totally 10 subjects are included in consolidate financial statement, mainly including:
Shareholding Voting rights ratio
Subsidiaries Type Level
ratio (%) (%)
Chengde Nanjiang Trading Co. Ltd. (Nanjiang Wholly-owned 2 100.00 100.00
Trading for short) subsidiary
Chengde Dongfeng Investment Co., Ltd. (Dongfeng Wholly-owned 2 100.00 100.00
Investment for short) subsidiary
Chengde Dongfeng Ecological Agriculture Co., Ltd. Wholly-owned 3 100.00 100.00
(Ecological Agriculture for short) sub-subsidiary
Nanjiang Asia Investment Co., Ltd. (Nanjiang Asia Wholly-owned 2 100.00 100.00
for short) subsidiary
Chengde Nanjiang Technology Co. Ltd. (Nanjiang Wholly-owned 3 100.00 100.00
Technology for short) subsidiary
Chengde Huijing Property Service Co., Ltd. Wholly-owned 3 100.00 100.00
(Huijing Property for short) sub-subsidiary
Hangzhou Dongfeng Technology Co., Ltd. Wholly-owned 2 100.00 100.00
(Hangzhou Dongfeng for short) subsidiary
Chengde Kefeng Aerospace Technology Wholly-owned 2 100.00 100.00
Development Co. Ltd. (Chengde Kefeng for short) subsidiary
Chengde Kefeng Trading Co., Ltd. (Kefeng Trading Wholly-owned 2 100.00 100.00
for short) subsidiary
Chengde Kefeng Engineering Project Management Wholly-owned 2 100.00 100.00
Co. Ltd. (Kefeng Engineering for short) subsidiary
Note:
1. Former Hangzhou Hangfeng Technology Co., Ltd. renamed as Hangzhou Dongfeng Technology Co., Ltd. in June 2017;
2. Former Chengde Nanjiang Investment Co., Ltd. renamed as Chengde Dongfeng Investment Co., Ltd. in June 2017;
3. Former Chengde Nanjiang Ecological Agriculture Co., Ltd. renamed as Chengde Dongfeng Ecological Agriculture Co., Ltd. in
June 2017;
4. In March 2017, the company separated the wholly owned subsidiary Chengde Nanjiang Trading Co., Ltd. (hereinafter referred to
as “Nanjiang Trading”), Nanjiang Trading continued to exist, with the registered capital of RMB 1 million, and derived to establish
Chengde Kefeng Project Management Co., Ltd., with the registered capital of RMB 500,000, and Chengde Kefeng Trading Co. Ltd.,
with the registered capital of RMB 8.5 million. Approved by Chengde Market Supervision Authority, Nanjiang Trading has
completed the relevant industrial and commercial registration for separation. Chengde Kefeng Project Management Co., Ltd. and
Chengde Kefeng Trading Co. Ltd. established by derivation are the company’s wholly-owned subsidiaries and are included in the
26
东沣科技集团股份有限公司 2017 年半年度财务报告
consolidated financial statements.
Subsidiary, special purpose vehicle and operational entity with control over by means of entrusted management or lessee newly
included in the consolidate scope in the Period:
Name Reason for changes
Kefeng Trading Enterprise derivated
Kefeng Engineering Enterprise derivated
Subsidiary, special purpose vehicle and operational entity with control lost by means of entrusted management or rent-out, which no
longer include in consolidate scope in the Period:
Name Reason for changes
Runhua RW The Company release the consistent action with shareholder Lan
Chunhong
Note: On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the
shareholder Lan Chunhong of Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original
Concerted Action Person Agreement, both parties no longer maintain the concerted actions to the company’s daily production and
operation and the decision-making of other major matters, and each party makes opinions independently and exercises the right to
vote in accordance with the laws and regulations and normative documents and the provisions of the articles of association and their
own wishes, both parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action
person relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control
power to Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the
date of losing the control power to it, and check and calculate by equity method.
IV. Basis of preparation of financial statements
1. Preparation basis
The Company conducts recognition and measurement according to actual occurrence of transactions and issues, pursuant to the
accounting principles for enterprise-basic rules and specific accounting principle as well as the application guidance for the
accounting principles for enterprise, interpretation to the accounting principles for enterprise and other related requirements
(hereinafter referred to as Enterprise Accounting Principles) issued by the ministry of finance, on that basis, combining the
Information Disclosure Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report
(amended in 2014) of the CSRC for statement preparation.
2. Going concern
We evaluated the sustainable management ability for 12 months since end of the period, and found out that there was not a
significant doubt on sustainable management ability of the entity in consolidate statement range. Therefore, the financial statement is
prepared based on the continuing operation assumption.
V. Major accounting policy and accounting estimation
Notice of specific accounting policy and estimation:
Nil
27
东沣科技集团股份有限公司 2017 年半年度财务报告
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business Enterprises;
truthfully and completely reflect the financial status, operation results and cash flow etc. of the Company.
2. Fiscal period
The fiscal year of the Company is from 1 January to 31 December on basis of Gregorian calendar.
3. Operating cycle
One operating cycle for the Company is 12 months
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
1. If the terms, conditions, and economic impact of each transaction involved in business combination achieved in stages fall
within one or more of the following situations, such transactions will be accounted for as a package deal:
(1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
(2) Such transactions as a whole in order to reach a complete business results;
(3) The occurrence of a transaction subject to that of at least one other transaction;
(4) One transaction alone is not economic, but otherwise when considered with other transactions.
2. Business combination under the same control
The Company’s assets and liabilities acquired in a business combination are measured by the book value in the consolidated financial
statements of ultimate controlling party in accordance with the assets and liabilities (including the goodwill formed by the ultimate
controlling party’s acquisition to the combined party) of combined party on combining date. If there is balance between the book
value of net assets obtained in merger and the book value of paid merger consideration (or total face value of issued shares), adjust
the stock premium in capital reserve, and adjust the retained earnings if the stock premium in capital reserve is not enough for writing
down.
If there is a contingent consideration needs to confirm the expected liabilities or assets, and there is balance between the expected
liabilities or assets amount and the settlement amount of follow-up contingent consideration, adjust the capital reserve (capital
premium or stock premium), and adjust the retained earnings if the capital reserve is not enough.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle of transactions,
then each of them shall be accounted as a transaction to acquire controlling right; and if not belong to a bundle of transactions, then
the difference between the initial investment cost of the long term equity investment as of the date on which the Company obtains
controlling right and the carrying value of the long term equity investment prior to combination plus the carrying value of the new
consideration paid for further acquisition of shares as of the combination date shall be used to adjust capital reserve; in case of
insufficient capital reserve, adjust retained earnings. For equity investment held prior to the combination date, the other
comprehensive income recognized due to calculation by equity method or based on recognition and measurement principles for
28
东沣科技集团股份有限公司 2017 年半年度财务报告
financial instruments would not be accounted for temporarily until the Company disposes of this investment on the same basis as the
investee directly disposes of relevant assets or liabilities; other changes of owners’ equity in the net assets of investee as recognized
under equity method, except for net profit or loss, other comprehensive income and profit distribution, shall not be accounted for
until being transferred to current profit or loss when this investment is disposed of.
3. Business combination not under the same control
The Company's assets paid as the consideration of business merger or liabilities occurred or assumed on the acquisition date are
measured by the fair value, and the balance between fair value and its book value is included in the current profit and loss.
The Company confirms the balance that the combined cost is greater than the fair value shares of acquiree’s recognizable net assets
obtained in the combination as the goodwill; the balance that the combined cost is less than the fair value shares of acquiree’s net
identifiable assets obtained in the combination is included in the current profit and loss after re-checking.
As for the business combination not under the same control realized through several exchange transactions step by step, part of the
package deal, than carrying accounting treatment on transactions with controlling rights obtained through vary transactions; for
equity investment held prior to combination date which is calculated under equity method, the sum between carrying value of the
equity investment prior to acquisition date and cost of additional investment made on the acquisition date is deemed to be the initial
investment cost of this investment. Other comprehensive income recognized for equity investment held prior to combination date
under equity method shall be accounted for when the Company disposes of this investment on the same basis as the investee directly
disposes of relevant assets or liabilities. In case that equity investment held prior to combination date is calculated based on
recognition and measurement principles for financial instruments, then the fair value of this equity investment as of combination date
plus new investment cost shall be deemed as initial investment cost. The difference between fair value and carrying value of the
originally held equity interests and the accumulated fair value movements as originally recorded in other comprehensive income shall
be all transferred to investment income of the period in which the combination date falls.
4. Relevant expenses from combination
The intermediate expenses occurred for business combination such as audit, legal service and appraisal consultation expenses and
other related expenses shall be recorded in current gains and losses when occurred; the trading expenses for equity securities offering
shall be excluded while reckoned into equity transaction directly.
6. Methods for preparation of consolidated financial statements
1. Consolidated scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control, and all subsidiaries
(including the independent subject control by the Company) have been consolidated.
2. Consolidated procedure
Based on financial statements of its own and the subsidiaries, the Company establishes the consolidated financial statements
according to other relevant data. The consolidated financial statements established by the Company regard the whole enterprise group
as an accounting subject, and reflect the overall financial situation, operating results and cash flow of the enterprise group by the
uniform accounting policies in accordance with the relevant confirmation, measurement and presentation requirements of accounting
standards.
The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation scope are in line
with the Company. If it is not the same as the Company, necessary adjustments will be made when preparing consolidated financial
statements according to the accounting policy and accounting period of the Company.
When consolidating financial statements, the Company shall offset all effects upon consolidated balance sheet, consolidated profit
statement, consolidated cash flow statement and consolidated statement of changes in equity arising from the internal transactions
between the Company and each subsidiary and between various subsidiaries. If there is difference between the point of view of
consolidated financial statements of enterprise group and the affirmation to the same transaction by taking the Company or its
subsidiaries as the accounting subject, adjust the transaction from the enterprise group’s point of view.
29
东沣科技集团股份有限公司 2017 年半年度财务报告
The ownership interests of subsidiaries, current net profits or losses and shares of current comprehensive income belonging to
minority shareholders are respectively and separately listed under the ownership interest item of consolidated balance sheet, the net
profit item of consolidated profit statement and the total comprehensive income item. The balance that the current losses shared by
the subsidiary's minority shareholders is greater than the shares in the ownership interests held by the minority shareholders in the
beginning period of this subsidiary offsets against the minority stockholders' interests.
For the subsidiaries acquired through business combination under the same control, take the fair value of its assets and liabilities
(including the goodwill formed by the ultimate controlling party’s acquisition to the combined party) in the financial statements of
ultimate controlling party as a basis to adjust its financial statements.
For the subsidiaries acquired through business combination not under the same control, take the fair value of net identifiable assets
on acquisition date to adjust its financial statements.
(1) Increase subsidiaries or businesses
During the reporting period, if there are subsidiaries or businesses increased by the business combination under the same control,
adjust the opening balance of consolidated balance sheet; include the income, expenses and profits of the subsidiaries or business
combination from the beginning of the period to the end of the reporting period into the consolidated profit statement; include the
cash flow of the subsidiaries or business combination from the beginning of the period to the end of the reporting period into the
consolidated statement of cash flows, adjust the relevant items of comparative statements at the same time, and regard that the
reporting entity after combination has been exiting since the ultimate controller starts controlling.
If the control can be implemented to the investees under the same control due to the additional investment, it can be regarded that all
partied in the combination can be adjusted when the ultimate controller starts controlling, i.e. by the current status and existence. For
the equity investment held before obtaining the control power of combined party, the relevant profit and loss, other comprehensive
income and other changes in net assets from the later date between the acquisition date of original stock right and the date when the
combining party and combined party are under the same control to the combination date respectively offset against the retained
earnings at the beginning of the period or the current profit and loss in the comparative statement period.
During the reporting period, if there are subsidiaries or businesses increased by the business combination not under the same control,
don’t adjust the opening balance of consolidated balance sheet; include the income, expenses and profits of the subsidiaries or
business combination from the purchase date to the end of the reporting period into the consolidated profit statement; include the
cash flow of the subsidiaries or business combination from the purchase date to the end of the reporting period into the consolidated
statement of cash flows.
If the control can be implemented to the investees not under the same control due to the additional investment, the Company
re-measures the stock right of acquiree held before the purchase date according to the fair value of this stock right on the purchase
date, the balance between fair value and its book value is included in the current investment income. Other comprehensive income
that the stock right of acquiree held before the purchase date involving in equity method business accounting and other changes in
ownership interest except for net profit or loss, other comprehensive income and profits distribution, together with its relevant other
comprehensive income and other changes in ownership interest are transferred into the current investment income attributable to the
purchase date, besides the other comprehensive income generated by the changes in the net indebtedness and net assets re-measured
and defined benefit plans by investees.
(2) Disposal of subsidiaries or businesses
1) General approaches
During the reporting period, if the Company disposes a subsidiary or business, the income, expense and profit of this subsidiary or
business from the beginning of the period to the disposal date are included in the consolidated income statement; the cash flow of this
subsidiary or business from the beginning of the period to the disposal date are included in the consolidated statement of cash flows.
When control power over investees are lost due to disposal of some equity investment or other reasons, the Company re-measure the
remaining equity investment after disposal in accordance with its fair value on the date to lose the control power. The balance by
subtracting the sum of consideration obtained by disposing stock right and fair value of residual equity from the sum of the shares of
30
东沣科技集团股份有限公司 2017 年半年度财务报告
net assets continuously calculated according to the original shareholding ratio since the purchase date or combination date of the
original subsidiary and the goodwill are included in the investment income of the current period of losing control power. Other
comprehensive income related to the equity investment of original subsidiary and other changes in ownership interest except for
other net profit and loss, other comprehensive income and profits distribution are transferred into current investment income when
losing the control power, besides the other comprehensive income generated by the changes in the net indebtedness and net assets
re-measured and defined benefit plans by investees.
2) Dispose subsidiaries step by step
Dispose a subsidiary's equity investment until losing the control power step by step through multiple transactions, if the terms,
conditions and economic impact of the disposal to various transactions of the subsidiary's equity investment conform to following
one or various conditions, it means that the multiple transactions should have accounting treatment as a package deal:
A. These transactions are made by considering each other’s impacts;
B. These transactions can only reach a complete business result as a whole;
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. One transaction alone is not economical, but it is economical when it is considered together with other transactions.
The various transactions that dispose a subsidiary's equity investment until losing the control power belong to a package deal, the
Company handles accounting treatment to various transactions by taking them as a transaction disposing a subsidiary's equity
investment and losing the control power; however, the balance between every disposal price before losing control power and net
asset shares of the subsidiary corresponding to disposal of investment should be confirmed as other comprehensive income in the
consolidated financial statements and transferred into the profit and loss of the current period of losing control power when losing the
control power.
The various transactions that dispose a subsidiary's equity investment until losing the control power and don’t belong to a package
deal, before losing control power, are handled with accounting treatment according to relevant policies which used to partly dispose
the subsidiary's equity investment on the condition of not losing the control power; when losing the control power, they are handled
with accounting treatment according to the general handling methods used to dispose the subsidiary.
(3) Purchase the minority shareholding of a subsidiary
If there is balance between the Company’s long-term equity investment newly obtained by purchasing the minority shareholding and
the net asset shares of the subsidiary continuously calculated from the acquisition date (or combination date) according to the newly
increased shareholding ratio, adjust the capital stock premium in capital reserve on consolidated balance sheet, if the capital stock
premium in capital reserve is not enough for offset, adjust the retained earnings.
(4) The partial disposal of equity investments in subsidiaries without losing the control power
If there is balance between the disposal price obtained by the partial disposal of long-term equity investments in subsidiaries without
losing the control power and the net asset shares of the subsidiary continuously calculated from the acquisition date or combination
date corresponding to the disposal of long-term equity investments, adjust the capital stock premium in capital reserve on
consolidated balance sheet, if the capital stock premium in capital reserve is not enough for offset, adjust the retained earnings.
7. Classification of joint arrangement and accounting for joint operations
1. Classification of joint arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure, legal form, agreed
terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those concluded through separate
entity are generally classified as joint ventures. However, joint venture arrangement which meets any of the following conditions as
proven by obvious evidence and satisfies relevant laws and rules is grouped as joint operation:
1. The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and obligations in
respect of the relevant assets and liabilities.
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东沣科技集团股份有限公司 2017 年半年度财务报告
2. It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights and obligations in
respect of the relevant assets and liabilities.
3. Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and obligations in respect
of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the output related to joint venture
arrangement and settlement of the liabilities under the arrangement continues to rely on supports from the joint parties.
2. Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for under relevant
business accounting principles:
1. To recognize separately-held assets and jointly-held assets under its proportion;
2. To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
3. To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
4. To recognize revenue from disposal of the output under the proportion;
5. To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation), gain or loss arising
from the transaction is only recognized to the extent it is attributable to other parties to the joint operation before the joint operation is
sold to any third party. In case those assets injected or disposed satisfy the condition for asset impairment loss under Business
Accounting Principle No.8-Assets Impairment, the Company recognizes this loss in full.
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or loss arising from the
transaction is only recognized to the extent it is attributable to other parties to the joint operation before the relevant assets are sold to
any third party. In case that the acquired assets satisfy the condition for asset impairment loss under Business Accounting Principle
No.8-Assets Impairment, the Company recognizes relevant loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of the joint operation
and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it would be accounted for under the
relevant business accounting principles.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment at any time as cash,
and investments featuring with the following four characters at the same time as cash equivalents: short term (expire within 3 months
commencing from purchase day), active liquidity, easy to convert to already-known cash, and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
1. Foreign currency business
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based on spot exchange
rate at date of trading occurred while initially recognized.
On balance sheet date, balance of foreign currency monetary items shall be converted based on the spot rate as at the balance sheet
date, and the arising exchange difference shall be recorded in current gains and losses other than those arising from the special
foreign currency borrowings related to purchasing assets qualifying for capitalization which is treated under the principle of
borrowing expense capitalization. As for the foreign currency non-monetary items measured in historical cost, conversion is still
conducted with the spot rate as at the transaction date, without any change to its functional currency.
As for the foreign currency non-monetary items measured in fair value, conversion is conducted with the spot rate as at the date for
determination of fair value, and the arising exchange difference shall be recorded in current gains and losses as the changes of fair
value. if the foreign currency non-monetary items belong to foreign currency available for sale, the arising exchange difference shall
be recorded in other comprehensive income.
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东沣科技集团股份有限公司 2017 年半年度财务报告
2. Translation of foreign currency financial statement
Assets and liabilities in balance sheet are translated at the spot exchange rate at the balance sheet date. Equity items, excluding
“undistributed profit”, are translated at the spot exchange rates at the transaction dates. As for those translated at the spot exchange
rates at the transaction dates or those recognized in line with the reasonable method in system, translated at the similar exchange rate
as at the transaction date. The resulting translation differences are recognized in other comprehensive income.
When disposing overseas operations, the foreign currency financial statement translation differences listed under items of other
comprehensive income in balance sheet and which are directly related to the overseas operations are transferred to profit or loss in
the period when the overseas operation is disposed; In case of partial disposal or the overseas business, which has lower operation
ratio overseas without operation controlling loss due to other reason, the translation differences related to disposal part shall
including in equity of minority shareholders, no need to transfer into current gains/losses. In case of partial disposal of associated or
joint venture, foreign currency translation differences shall be calculated in respect of the disposed part under disposal proportion and
transferred to profit or loss in the period when the overseas operation is disposed.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
1. Categories of financial instruments
According to the contract terms of the financial instrument issued and economic substance reflects by such instrument, not only in
form of law, combine with purposes held for financial assets and liabilities, the management categorizes financial assets and liability
into different types at the time of initial confirmation: financial assets (or financial liabilities) at fair value through current gains and
losses; accounts receivable; financial assets available for sale; other financial liabilities, etc.
2. Recognition and measurement for financial instrument
(1) Financial assets or liabilities at fair value through profit or loss
Financial assets or liabilities at fair value through profit or loss include transactional financial assets or financial liabilities and
financial assets or liabilities directly designated at fair value through profit or loss.
Transactional financial assets or financial liabilities refer to those meeting any of the following conditions:
1) Purpose for holding the assets or liabilities are to disposal, repurchase or redemption in a short time;
2) Constitute part of the identifiable financial instrument group for central management, and there is objective evidence proving that
the Company manages this group in a short-time-return way recently;
3) Belong to derivative financial instrument, other than those derivatives designated as effective hedge instruments, belonging to
financial guarantee contracts and those linked to equity instrument investment which is not quoted in an active market and whose
fair cannot be measured reliably and the settlement of which is conditional upon delivery of the equity instrument.
Subject to satisfaction of any of the following conditions, financial assets or liabilities can be designated as financial assets or
liabilities at fair value through profit or loss upon initial measurement:
1) The designation can eliminate or substantially eliminate the inconsistencies between profit or loss from the financial assets arising
from different measurement basis;
2) The portfolio of financial assets and liabilities in which the financial asset belongs to are designated as measured at fair value in
the risk management report or investment strategic report handed in to key management personnel;
3) Hybrid instruments which contains one or more embedded derivatives, unless the containing of embedded derivatives does not
have substantial effect on the cash flows of the hybrid instruments, or the embedded derivatives obviously should not be separated
from relevant hybrid instruments;
4) Hybrid instruments which contains embedded derivatives that should split, but cannot be measured separately when acquired or on
the subsequent balance sheet date.
Amount is initially measured by the sum of fair value (deducted bond interest expired without received) while obtained and relevant
transaction expenses.
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东沣科技集团股份有限公司 2017 年半年度财务报告
Interest or cash dividend in period of holding shall be recognized as investment income, and reckoned into current gains/losses with
the variation of fair value at period-end.
In case of disposal, the difference between the amount while obtained and book value of the investment shall reckon into investment
income, and gains/loses of variation of the fair value shall be adjusted correspondingly.
(2) Account receivables
Account receivables refer to the non-derivative financial assets in active market, which has no quoted but has fixed amount or
amount can be determined in collection.
The contract price charged to the buyers shall be recognized as initial value for those account receivables which mainly comprise the
receivable creditor’s right caused by the sale of goods and providing of labor service to external customers by the Company, and
receivables in other companies excluding debt instruments priced in active markets, includes but not limited to trade receivables,
notes receivables, account paid in advance and other receivables. If characterized as of financing nature, the initial recognition shall
be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivables shall be accounted into current profit or
loss on its recovery or disposal.
(3) Held-to-maturity investment
The non-derivative financial assets with maturity date, fix return amount or amount able to determined, and the Company held with
specific intention and ability.
The Company takes the sum of fair value (after deducting bond interests which is due for interest payment but not received) and
related transaction fee as initial recognition amount in respect of held-to-maturity investment upon acquisition of the investment.
During the holding period, the Company recognizes interest income at amortized cost and effective interest rate which is included in
investment income. The effective interest rate is determined upon acquisition of the investment and remains unchanged for the
expected continuous period or appropriate shorter period. Difference between sale price and carrying value of the investment is
included in investment income.
If held-to-maturity investment is disposed or reclassified as other types of financial asset, and the relevant amount is relatively bigger
than the total amount of our all held-to-maturity investments prior to disposal or reclassification, the remaining held-to-maturity
investments shall be reclassified as available-for-sale financial assets immediately following such disposal or reclassification. On the
reclassification date, difference between the carrying value and fair value of the investment is included in other comprehensive
income and is transferred out into current profit or loss when the available-for-sale financial assets experience impairment or
derecognition. However, the followings are exceptions:
1) The date of disposal or reclassification is approaching to the date of expiration or redemption of the investment (such as three
months prior to expiration), and change of market rate has no material influences over the fair value of the investment.
2) Company has already recovered nearly all initial principal under the repayment means as agreed in contract.
3) Disposal or reclassification is arising from separate matters which are out of our control, which are expected not to occur
repeatedly and which are difficult to predict reasonably.
(4) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale upon initial recognition
and financial assets other than other categories of financial assets.
The Company initially measures available-for-sale financial assets at the sum between their fair values when acquiring the assets or
liabilities (after deducting cash dividend already declared but not paid or bond interests which is due for interest payment but not
received) and the relevant transaction fee.
Interest or cash dividend acquired during the holding period shall be recognized as investment income. Gains or losses arising from
movement of fair value is directly included in other comprehensive income except for impairment loss and exchange difference
arising from foreign currency monetary financial assets.
When disposing available-for-sale financial assets, the Company includes the difference between the acquired price and carrying
value of the financial assets into investment profit or loss. Meanwhile, accumulated fair value movement attributable to the disposed
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东沣科技集团股份有限公司 2017 年半年度财务报告
part which is originally directly included in other comprehensive income is transferred out and included investment profit or loss.
For equity instrument investment which is not quoted in an active market and whose fair value cannot be reliably measured, and
derivative financial assets which are linked to the equity instrument and whose settlement is conditional upon delivery of the equity
instrument, they are stated at cost by the Company.
(5) Other financial liabilities
Initial recognition amount is determined at the sum of fair value and relevant transaction fee. Subsequent measurement is conducted
at amortized cost.
(6) Held-to-maturity investment for sales or reclassify as financial assets available for sale:
In case that the amount of held-to-maturity investments disposed or reclassified into other categories of financial assets is greater
than the total amount of all the held-to-maturity investment of the Company before the disposal or reclassification, the remaining
held-to-maturity investment shall be recorded as financial assets available for sale immediately after such disposal or reclassification,
unless:
1) The date of disposal or reclassification is relatively close to the maturity date or redemption date of the investment (such as three
months before expiration), and change of market rate has no material affects on the fair value of the investment.
2) The enterprise has nearly recovers the entire initial principal under the payment method as agreed by contract.
3) The disposal or reclassification is due to such independent matter that the enterprise is not able to control, will not happen again as
expected and can not predicted reasonably.
3. Confirmation evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs, the Company shall stop recognition of such financial assets if all risks and remunerations
related to ownership of such financial assets have almost been transferred to the receiver; while shall continue to recognize such
financial assets if all risks and remunerations related to ownership of such financial assets have almost been retained.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for transfer of financial
assets, the Company generally adopts the principle that substance overweighs format. The Company divides such transfer into entire
transfer and part transfer. As for the entire transfer meeting condition for discontinued recognition, balance between the following
two items is recorded in current gains and losses:
(1) Carrying value of financial assets in transfer;
(2) Aggregate of the consideration received from transfer and accumulative movements of fair value originally recorded in owners’
equity directly (applicable when financial assets involved in transfer belong to financial assets available for sale).
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets in transfer is shared
by discontinued recognition part and continued recognition part, in light of their respective fair value. Balance between the following
two items is recorded in current gains and losses:
(1) Carrying value of discontinued recognition part;
(2) Aggregate of the consideration of discontinued recognition part and amount of such part attributable to accumulative movements
of fair value originally recorded in owners’ equity directly (applicable when financial assets involved in transfer belong to financial
assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition for discontinued recognition.
And consideration received is recognized as financial liability.
4. De-recognition condition for financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall de-realize such financial
liabilities or part of it. if the company enters into agreement with its creditor to substitute for the existing financial liabilities by
means of assuming new financial liabilities, then the company shall de-realize the existing financial liabilities and realize the new
financial liabilities provided that the contract clauses of the new and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financial liabilities, it shall
de-realize the existing financial liabilities or part of it. Meanwhile, the financial liabilities with amendment to its clauses shall be
realized as new financial liabilities.
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东沣科技集团股份有限公司 2017 年半年度财务报告
In case of derecognizing of financial liabilities in whole or part, the difference between the carrying value of such de-realized
financial liabilities and consideration paid (including the non-cash assets exchanged or new financial liabilities assumed) shall be
recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of the continuing recognition
part and the derecognizing part, the company shall allocate the carrying value of the financial liabilities in whole on the repurchase
date. Difference between the carrying value allocated to the derecognizing part and the consideration paid (including the non-cash
assets exchanged or new financial liabilities assumed) shall be recorded in current gains and losses.
5. Determination method for fair value of financial assets and financial liabilities
As for the financial assets or financial liability for which there is an active market, the quoted prices in the active market shall be
used to determine the fair value thereof; the quoted prices in the active market refers to the prices, which are easily available from the
stock exchanges, brokers, industry associations, pricing service institutions and etc. at a fixed term, and which represent the prices at
which actually occurred market transactions are made under fair conditions.
As for the financial assets and financial liabilities measured by fair value and in case that there are active market for those assets and
liabilities, then the fair value shall be determined based on the quotation on active market; as for the financial assets initially acquired
or financial liabilities assumed, their fair value are determined based on the market transaction prices; in case that there are no such
active market for financial assets and financial liabilities, the fair value shall be determined by evaluation technology. At time of
evaluation, the applicable evaluation technology, in the prevailing circumstance, and those have available date and other information
supporting shall be adopted, choose the input value, same with the assets or liability features that consider in transaction by market
participants, and use the relevant observable input values as far as possible. Use the un-observable input values when relevant
observable input values unable to obtained or obtained without feasible.
6. Provision of impairment reserve for impairment of financial assets (excluding account receivables)
The company reviews the carrying value of the financial assets (excluding those measured by fair value and the change thereof is
recorded in current gains and losses) on the balance sheet date, if there is objective evidence showing impairment of the financial
assets, it shall provide impairment reserve.
Objective evidence that a financial asset is impaired includes the following observable events:
Significant financial difficulty of the issuer or obligor;
A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
The creditor, for economic or legal reasons relating to the borrower’s financial difficulty, granting a concession to the borrower;
It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets
since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the
group, including: adverse changes in the payment status of borrowers in the group, an increase in the unemployment rate in the
country or geographical area of the borrowers, a decrease in property prices for mortgages in the relevant area, or adverse changes in
industry conditions that affect the borrowers in the group;
Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that
the cost of the investment in the equity instrument may not be recovered by the investor;
A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
Details for impairment of financial assets are set out below:
(1) Impairment provision for available-for-sale financial assets
The Group has separately tested various available-for-sale equity instruments at the balance sheet date. It will be defined as
impairment if the fair value is lower than the initial investment cost by more than 50% (including 50%) or the low state has lasted for
no less than 1 year. While the lower proportion is between 20% and 50%, the Group will take other factors such as price fluctuation
into consideration to estimate whether the equity instrument has impaired or not.
Cost stated in the above paragraph is determined based on the initial acquisition cost of available for sale equity instrument
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东沣科技集团股份有限公司 2017 年半年度财务报告
investment less recovered principal and amortized amount as well as impairment loss originally included in profit or loss; fair value
is determined at the closing price quoted on stock exchange at period end, unless the available for sale equity instrument investment
is limited for sale for certain periods. For available for sale equity instrument investment which is limited for sale for certain periods,
fair value is determined at the closing price quoted on stock exchange at period end less the compensation required by market
participator who would otherwise assume risks due to impossibility of selling the equity instrument on open market in designated
period.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that had been recognized
in other comprehensive income is reclassified to the profit or loss even though the financial asset has not been derecognized. The
amount of the cumulative loss that is removed from equity is the difference between the acquisition cost (net of any principal
repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized in profit or
loss.
If there are objective evidences showing that the value of available-for-sale debt instrument is recovered and it relates to the matters
happened after the impairment loss recognition, the impairment loss recognized shall be reversed and accounted in current profit or
loss. Impairment losses recognized for equity instrument investments classified as available-for-sale are reversed through equity.
However, impairment loss occurred by equity instrument investment which is not quoted in an active market and whose fair value
cannot be measured reliably and derivative financial assets which are linked to the equity instrument and whose settlement is
conditional upon delivery of the equity instrument, shall not be reversed.
(2) Impairment provision for held-to-maturity investment
For held-to-maturity investment, if there is object evidence showing the investment is impaired, then impairment loss is determined
based on the difference between its fair value and present value of predicted future cash flow. After provision, if there is evidence
showing its value has been restored, the originally recognized impairment loss can be reversed and included in current profit or loss,
provided that the reversed carrying value shall not exceed the amortized cost of the financial asset as at reversal date assuming no
impairment provision had been made.
7. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are stated in balance sheet separately without inner-offset. However, the net amount after
inner offset is stated in balance sheet date when the following conditions are all met:
(1) The Company has legal right to offset recognized amount and the right is enforceable;
(2) The Company plans to settle on a net basis, or simultaneously realize the financial assets and settle the financial liabilities.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Determine basis or amount standards for single significant
Account with single significant amount not less than RMB 1 million
amount
Conducted impairment testing separately, balance between the
present value of future cash flow and its carrying value, bad debt
Withdrawal method for bad debt provision of account receivable
provision withdrawal and reckoned into current gains/losses. As
with single significant amount:
for the receivable without impairment being out in test, accrual
bad debt provision in corresponding group
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东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Accounts receivable whose bad debts provision was accrued by combination of credit risk
characteristics portfolio
Combination Methods on withdrawal of bad debt provision
Age combination Age analysis method
No risk portfolio Other method
Related party combination in combined range Other method
Accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □Not-applicable
Account age Rate for receivables Rate for other receivables
Within one year (one year included) 5.00% 5.00%
1－2 years 20.00% 20.00%
2－3 years 50.00% 50.00%
Over 3 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion:
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods
√Applicable □ Not applicable
Name
Rate for receivables Rate for other receivables
No risk portfolio 0.00% 0.00%
Related party combination in combined
0.00% 0.00%
range
(3) Accounts receivable with single significant amount and bad debts provision accrued individually
There is an objective evidence of impairment which is probably
about to occurred, such as revocation from the debtor,
Reasons for withdrawal single item bad debt provision bankruptcy or dead, and still able to recover after liquidated by
the bankruptcy property or heritage as well as serious insufficient
cash flow etc.
For those account receivable with objective evidence of
impairment been found, separated them from the relevant groups
for impairment testing independently, and impairment losses
Withdrawal method for bad debt provision
shall recognized and withdrawal bad debt reserves on the
difference between the present values of estimated future cash
flow which is lower than its carrying value,
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东沣科技集团股份有限公司 2017 年半年度财务报告
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Real estate industry
1. Classification of inventories
Inventories are categorized into development cost, development products, relocation housing animals & plants aquaculture plant
products and low value consumables etc.
2. Valuing of inventory
The Company adopts the historical cost for obtaining or the planned cost to value the inventory according to its actual situation, and
specific identification method for the development projects.
3. Confirmation of net realizable value for the inventory and provision for inventory impairment
Making an overall check of the inventory at end of the year, withdrawal the lower one according to the cost or the net realizable
value, or adjusted the provision for inventory impairment. Withdrawal the impairment provisions for the single inventory at end of
the year.
In case the influencing factor for write-down of the inventory values has disappeared, the amount which has been written down can
be recover, and shall switch back within the inventory falling price reserves which has been accrual originally, the amount switch
back shall reckoned into current gains/losses.
4. Inventory System
Perpetual inventory system
5. Low-value consumables are amortized on one-off amortization method
6. Relocation housing refers to the house for turnover purpose to arrange for relocation of residents, and amortized evenly in
50 years.
7. Calculation method of the lands for development purpose
As for the pure land development project, the costs constitute costs of the land development; the project develops along with the real
estate, costs with clear burden of objects shall split into commercial house costs with actual area.
8. Calculation method of the expenses of public supporting facilities
Public supporting facilities cannot be transfer with compensation: reckoned into commercial house costs by the benefit ratio;
Public supporting facilities can transfer with compensation: take all supporting facilities as the cost calculation subject, summarize
the costs occurred.
13. Classified as assets held for sale
1. Recognition criteria of assets held for sale
The Company’s component (or non-current asset) will recognize as held-for-sale while satisfied the followed conditions
simultaneously:
(1) The component can be promptly sold at its existing status only according to the practice terms in connection with disposal of this
kind of assets;
(2) The Company has already made resolution on disposal of such component, such as approved by shareholders in line with
regulations, have already approved by general meeting or relevant authority;
(3) The Company entered into irrevocable transfer agreement with the transferee;
(4) And this transfer will be completed within one year.
2. Accounting for assets held for sale
The company will adjust the predicted net residual value of the held for sale fixed assets so that the predicted net residual value can
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东沣科技集团股份有限公司 2017 年半年度财务报告
reflect its fair value minus the costs of disposal, but the predicted net residual value should not exceed the book value of the fixed
asset when it was recognized as held for sale. If the book value is higher, the difference between them should be charged into profit
or loss for the current period as asset impairment loss. Fixed assets held for sale shall not be depreciated or amortized, and is
measured at carrying value and fair value less costs of disposal (whichever is lower).
Other non-current assets like equity investments and intangible assets satisfying condition for held for sale should be accounted for as
shown above, other than deferred income tax assets, financial assets under Business Accounting Standard No. 22-Measurement and
Recognition of Financial Instruments, investment property measured at fair value, biological assets, and rights from insurance
contract.
14. Long-term equity investment
1. Recognition of investment cost
(1) As for the long-term equity investment formed from business combination under the same control, accounting policy found in
Note I - Accounting method for business combination (not) under the same control.
(2) Long-term equity investment obtained by other means
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as initial investment
cost. Initial investment cost including the expenses, taxes and other necessary costs that directly concerned with the long-term equity
investment that acquired.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such securities shall be viewed
as initial investment cost; for transaction expenses from issuing or own equity instrument acquired, it can be deducted from the
equity when such expenses attributable directly to equity transaction.
Under the precedent condition that non-monetary assets exchanges are featured with commercial nature and fair values of
exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in through non-monetary assets
exchange shall be recognized with initial investment cost on the basis of the fair value of the assets exchange-out, unless there is
obvious evidence showing that fair value of exchange-in assets is more reliable; as for non-monetary assets exchanges not satisfying
such precedent condition, initial investment cost of exchange-in long-term equity investment falls to the carrying value of
exchange-out assets and relevant taxes payable.
For long-term equity investments obtained through debt reorganization, its initial investment cost is recognized based on fair value.
2. Subsequent measurement and recognition of gains and losses
(1) Subsequent measurement
(1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial investment cost, cost
of the long-term equity investment shall be adjusted while additional investment or dis-investment.
Other than payment actually paid for obtaining investment or cash dividend or profit included in consideration which has been
declared while not granted yet, the Company recognizes investment income according to its share in the cash dividend or profit
declared for grant by the invested unit.
(2) Equity method
The Company calculates long term equity investment in associates and joint ventures under equity method. For certain equity
investments in associates indirectly held through risk investment institutions, joint funds, trust companies or similar entities including
investment linked insurance fund, the Company measures the investment at fair value through profit or loss.
Where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment
cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is
recognized in profit or loss for the period.
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东沣科技集团股份有限公司 2017 年半年度财务报告
Return on investments and other comprehensive income is recognized respectively by shares of net gains and losses realized by the
invested company and other comprehensive income after acquisition of long-term equity, and book value of such investment is
adjusted accordingly. Profit or cash dividends pro rata distributed by the invested company are to minus book value of the relative
long-term investment. Book value of long-term investment is adjusted when changes occur other than net gains and losses, other
comprehensive income and profit distribution of the invested company, and is to reported in owners’ equity accordingly
The Company should recognized net profit of invested unit after adjustment, based on fair value of vary identifiable assets of
invested unit while obtained investment, while recognized net profit or net losses of invested units that should be enjoy by investment
enterprise. the un-realized transaction gains/losses attributable to investment enterprise, internally occurred between the Company,
affiliated units and joint-ventures should calculated by proportion of shares-holding which should be offset, than recognized
investment gains/losses.
When the Company is confirmed to share losses of the invested units, the following order shall prevail for disposal: first of all, offset
carrying value of long-term equity investment. Second, for long-term equity investment whose carrying value is not enough for offset,
investment loss should be continued to recognize within the limit of carrying value of other long-term equity which substantially
forms net investment to invested units, to offset carrying value of long-term items receivable. At last, after the aforesaid treatment, if
enterprise still bears additional duties according to investment contract or agreement, projected liabilities are recognized in
accordance to the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adverse to the above order after
deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized projected liabilities, recover carrying
value of long-term equity which substantially forms net investment to invested unit and long-term equity investment, and recognize
investment income at the same time.
3. Transfer of calculation for long term equity investment
(1) Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or significant influence over
the investee and which is accounted for under recognition and measurement principle as financial assets, in case that the Company
becomes able to exercise significant influence or common control upon the investee due to additional investment while no control is
reached, the sum of fair value of the originally held equity investment as determined under Business Accounting Principles No.22-
Recognition and Measurement Principle as Financial Assets plus cost of the new investment shall be deemed as the initial investment
cost upon calculation under equity method.
If the originally held equity investment is classified as available for sale financial assets, the difference between its fair value and
carrying value and the accumulated fair value movement which is originally included in other comprehensive income shall be
transferred to current period gains and losses under equity method.
In case that the initial investment cost under equity method is lesser than share of fair value of the investee’s net identifiable assets as
of the date when additional investment is made as calculated based on the latest shareholding proportion upon additional investment,
carrying value of the long term equity investment shall be adjusted against such difference which is included in current period
non-operating income.
(2) Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or significant influence over
the investee and which is accounted for under recognition and measurement principle as financial instrument, or for long term equity
investment originally held in associates or joint ventures, in case that the Company becomes able to exercise control over investee
not under common control due to additional investment, the sum of fair value of the originally held equity investment plus cost of the
new investment shall be deemed as the initial investment cost upon calculation under cost method when preparing separate financial
statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to acquisition date,
when the Company disposes this investment, the aforesaid income shall be accounted for on the same basis as the investee would
otherwise adopt when it directly disposes relevant assets or liabilities.
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东沣科技集团股份有限公司 2017 年半年度财务报告
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles No.22- Recognition
and Measurement of Financial Assets, the accumulated fair value movement which originally included in other comprehensive
income shall be transferred to current period gains and losses upon calculation under cost method.
(3) Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon investee due to disposal of part equity investment, the
remaining equity investment shall be calculated under Business Accounting Principles No.22- Recognition and Measurement of
Financial Assets, and the difference between its fair value and carrying value as of the date when the Company lost common control
or significant influence shall be included in current period gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment, when the Company
ceases calculation under equity method, the aforesaid income shall be accounted for on the same basis as the investee would
otherwise adopt when it directly disposes relevant assets or liabilities.
(4) Cost method transfer to equity method
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining equity investment
can exercise common control or significant influence over the investee, equity method shall be adopted when preparing separate
financial statement, and the remaining equity investment shall be adjusted as if it had been stated under equity method since the
acquisition.
(5) Cost method transfer to fair value measure
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining equity investment
cannot exercise common control or significant influence over the investee, Business Accounting Principles No.22- Recognition and
Measurement of Financial Assets shall be adopted for accounting treatment when preparing separate financial statement, and the fair
value and carrying value as of the date when control is lost shall be included in current period gains and losses.
4. Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity investment shall be included
in current period gains and losses. For long term equity investment under equity method, the Company shall adopt the same basis as
the investee directly disposes relevant assets or liabilities when disposing this investment, and account for the part originally included
in other comprehensive income under appropriate proportion.
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment in subsidiaries fall
into one or more of the following situations, such transactions will be accounted for as a package deal:
1. Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2. Such transactions as a whole in order to reach complete commercial results;
3. The occurrence of one transaction is subject to that of at least one other transaction;
4. A transaction alone is not economic, but otherwise when considered with other transactions.
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or otherwise, and therefore
disqualify a package deal, should prepare the relevant accounting treatment in differentiation with individual financial statements and
consolidated financial statement:
(1) In separate financial statement, as for disposal of equity interest, difference between carrying value and actual acquisition price
shall be included in current period gains and losses. In case that the remaining equity interests can exercise common control or
significant influence over investee, it shall be stated under equity method in stead, and shall be adjusted as if the remaining equity
interests had been stated under equity method since the acquisition. In case that the remaining equity interests cannot exercise
common control or significant influence over investee, it shall be accounted for under Business Accounting Principles No.22-
Recognition and Measurement Principle of Financial Instruments, and the difference between its fair value and carrying value as of
the date then the Company lost control shall be included in current period gains and losses.
(2) In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the difference between
disposal price and share of net assets of subsidiaries since purchase date or combination date shall be used to adjust capital reserve
(equity premium), and if capital reserve is insufficient to offset, then it shall adjust retained earnings; when the Company lost control
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东沣科技集团股份有限公司 2017 年半年度财务报告
in a subsidiary, the remaining equity interests would be re-measured at the fair value as of the control-lost date. The sum of
consideration gained from the disposal of equity and the fair value of remaining equity minus the share of net assets of original
subsidiaries since the day of purchase and based on its original shareholding ratio is credited into investment gain for the current
period, and off-set the goodwill at the same time. Other comprehensive income in relation to equity investments of original
subsidiaries should be transferred to investment gain for the period at the time of loss of control.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a package deal, carrying
accounting treatment on transaction of losing control rights and disposing the company, and should be accounted for accordingly in
differentiation with individual financial statements and consolidated financial statements:
(1) In consolidated financial statements, difference between each payment from disposal of an equity and the book value of such
long-term equity investment before the loss of control should be recognized as other comprehensive income and at the time of loss of
control, transferred to profit or loss for the current period.
(2) In consolidated financial statements, difference between each payment from disposal of a subsidiary and the share of its net assets
through investment before the loss of control should be recognized as other comprehensive income and at the time of loss of control,
transferred to profit or loss for the current period.
5. Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions which materially
affect return of such arrangement can only exist when other participators unanimously agree on the decisions, the Company is
deemed to jointly control this arrangement with other participators, and the arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be entitled to the net assets
of the separate entity under relevant agreements, the entity shall be viewed as a joint venture under equity method. However, when
the Company is judged to be not entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed
as a joint operation, in which case, the Company recognizes items relating to its share of interests from the joint operation and
accounts for according to relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and operational
policies of the investee, while not able to control or jointly control (with others) establishment of these policies. The following one or
more conditions are based to judge whether the Company has significant influence over investee with consideration of all facts and
situations: (1) Has delegate in the board of directors or similar authority organs of investee; (2) Participate in establishing financial
and operational policies of the investee; (3) Occur material transactions with the investee; (4) Delegate management to the investee;
(5) Provide key technical data to the investee.
15. Investment real estate
Measurement model of investment real estate
Measure by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both, including the rented
land use rights and the land use rights which are held and prepared for transfer after appreciation, the rented buildings.
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the external sources
includes purchase payment, related taxes and other expenditures which can be directly attributable to such assets; Cost of investment
property constructed by the Company comprise of the necessary expenditure occurred during the construction for reaching the
condition of planned use.
Consequent measurement of investment estate shall be measured by cost method. Depreciation and amortization are provided to the
buildings and land use right pursuant to the predicted service life and net rate of salvage value. The predicted service life and net rate
of salvage value and annual depreciation (amortization) are listed as follows:
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Type Expected operating life Predicted rate of net salvage Depreciation(amortization) rate per
(year) value annum
Land Use Right 50 0%-10% 1.80%-2.00%
House and buildings 20-28 0%-10% 3.56%-4.50%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets commencing from the date
of such turning. And when self-used real estate turns to be leased out for rental or additional capital, the fixed assets or intangible
assets shall switch to investment real estate commencing from the date of such turning. In situation of switch, the carrying value
before the switch shall be deemed as the credit value after the switch.
Indication of impairment is assessed, the recoverable amount shall be estimated and the impairment shall be recognizing while the
recoverable amount lower than its book value.
Impairment loss once recognized shall not be reversed.
When investment is disposed, or out of utilization forever and no economic benefit would be predicted to obtain through the disposal,
the Company shall terminate recognition of such investment real estate. The amount of income from disposal, transfer, discarding as
scrap or damage of investment real estate after deducting the asset’ s carrying value and relevant taxation shall be written into current
gains and losses.
16. Fixed asset
(1) Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one year of service life. Fixed assets should be recognized for qualified the followed
conditions at the same time: (1) It is probable that the economic benefits associated with the assets will flow into the Company; and
(2) The cost of the assts can be measured reliably.
(2) Depreciation method
Category Depreciation method Estimated useful life Estimated residual rate Annual depreciation rate
Houses and buildings Straight-line depreciation 20.00-28.00 5.00 3.39%-4.75%
Machinery equipment Straight-line depreciation 4.00-5.00 5.00 19.00%-23.75%
Transportation
Straight-line depreciation 5.00-20.00 5.00 4.75%-19.00%
equipment
Other equipment Straight-line depreciation 3.00-5.00 5.00 19.00-31.67%
Straight-line depreciation
(3) Basis of asserting, pricing and depreciation method on fixed assets under financing lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the following criteria
are met: (1) Upon the expiry of the lease term, the ownership is transferred to the Company. (2) The Company has the option to
purchase the asset at a predetermined price that is expected to be sufficiently lower than the fair value at the date the option becomes
exercisable and it is reasonably ascertained at the inception of lease that the option will be exercised. (3) The lease term approximates
the useful life of the relevant asset even if the ownership is not transferred. (4) At the inception of the lease, the present value of the
minimum lease payments is substantially equivalent to the fair value of the leased asset. (5) The leased assets are of such a
specialized nature that only the Company can use them without major modification. A fixed asset held under finance lease is initially
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东沣科技集团股份有限公司 2017 年半年度财务报告
recognized at the lower of fair value of the leased asset and the present value of the minimum lease payments, while the amount of
the minimum lease payments will be recognized as the entry value of long-term account payable, the difference between them will be
recognized as unrecognized financing costs. The initial direct costs such as commissions, attorney’s fees, and travelling expenses,
stamp duties attributable to the leased item incurred during the process of lease negotiating and signing the leasing agreement shall be
recorded in the asset value. Unrealized finance costs will be amortized using actual interest rate method over each period during the
lease terms. The Company adopts depreciation policies for leased assets consistent with those of self-owned fixed assets for the
purpose of calculating the depreciation of a leased asset. If it is reasonable to be certain that the lessee will obtain the ownership of
the leased asset when the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be
certain that the lessee will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully
depreciated over the shorter one of the lease term or its useful life.
17. Construction in process
1. Classification of constructions under progress
The constructions under progress of the Company are accounted for by fund project.
2. Standard and point of time for construction in process carrying forward to fixed assets
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted state for use. For
those constructions in process of fixed assets which have already arrived at the predicted state for use, while still with absence of
completion settlement, they shall be carried forward to fixed assets at the estimated value based on engineering budget, construction
cost or actual cost commencing from the date of arrival of the predicted state for use. Meanwhile, they shall be also subject to the
depreciation policies applicable to fixed assets of the Company for provision of depreciation. Once completion settlement is made,
the original temporary estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
unchanged.
3. Impairment test and impairment provision for construction in process
The Company determines whether there is evidence of impairment that may occur upon construction in progress at end of each
period.
If there is indication of impairment of construction in progress, the Company shall estimate its recoverable amount. The recoverable
amount is to be determined by the higher between the net price of the fair value of construction in progress after subtracting costs of
disposal and the present value of expected future cash flow from construction in progress.
When the recoverable amount of construction in progress is below their book value, the book value of construction in progress shall
be written down to its recoverable amount, and the amount of write-down shall recognized as impairment loss of construction in
progress, and included into current profits and losses. At the same time, the provision for depreciation of construction in progress
shall be accrued.
After the recognition, the impairment loss of construction in progress shall not be reversed in subsequent accounting period.
If there are indications showing that impairment of certain construction in progress is possible, the Company shall estimate its
recoverable amount based on individual construction. If difficult to do so, the Company shall determine the recoverable amount of
the assets group on basis of the asset groups to which the construction in progress belongs.
18. Borrowing expenses
1. Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing conditions start to be
capitalized and counted as relevant assts cost; other borrowing expenses, reckoned into current gains and losses after expenses
recognized while occurred.
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东沣科技集团股份有限公司 2017 年半年度财务报告
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a long period of time
to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest taken for purchasing,
constructing or manufacturing assets that complying with capitalizing condition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased, constructed or
manufactured.
2. Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for borrowing expensed
suspended excluded in the period.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization reached its predicted
usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization completed projects and
usable independently for part of the projects, borrowing expenses for this kind of assts shall suspended capitalization.
If the assets have been completed in every part, but can be reached the useful status or sale-able status while completed entirely, the
borrowing expense shall be suspended for capitalization while the assets completely finished in whole.
3. Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is suspended abnormally
for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended assets that satisfying the conditions of
capitalization meets the necessary procedure of reaching predicted usable status or sellable status, capitalizing of borrowing expenses
shall be resumed. The borrowing expenses occurred during the period of suspended shall reckon into current gains and losses until
the purchasing, construction, or manufacturing process is resumed for capitalizing.
4. Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of the bank saving
interest of unused borrowed fund or provisional investment gains
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of accumulated asset expenses
over the special borrowing assets multiply the capitalizing rate of common borrowings adopted. Capitalization rates are decided by
the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal year by effective
interest method, than adjusted interest amount in every period.
19. Biological assets
The biological assets of the Company refer to consumptive biological assets and productive biological assets. The consumptive
biological assets including young and livestock etc., productive biological assets including eggs etc.
Biological assets are recognized upon satisfaction of the following conditions:
(1) The company owns or controls the biological asset due to the past transaction or proceeding;
(2) The economic benefits or service potential related to the biological assets are likely to flow into the company;
(3) Cost of the biological assets can be measured reliably.
Acquisition and disposal of biological assets: cost of biological assets upon change of use is determined based on the carrying value
when use changes; the disposal income arising from disposal, damage or inventory losses of biological assets less the carrying value
and related taxes shall be recorded in current profit and loss.
The productive biological assets are initially measured according to the cost. The cost of the outsourcing productive biological assets
includes purchase cost, related taxes and dues, transportation charge, insurance expenses and other expenses directly belonging to the
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东沣科技集团股份有限公司 2017 年半年度财务报告
purchase of this asset. The book value of the productive biological assets of the investors is measured by adding the value on the
investment contract or the value stipulated by agreement to the payable taxes and dues, but if the contract or agreement appoints the
value as unfair, the actual cost is determined by the fair value. The cost of the progenitive productive biological assets is determined
according to the necessary expenses occurred before achieving the anticipated production and management purposes, including the
feed cost, labor cost and indirect expenses to be shared, etc.
The closing or the management and feeding costs occurred after achieving the predetermined production and management purposes
of the productive biological assets of the Company are reckoned in the current profit and loss.
The Company withdraws and depreciates the productive biological assets, and the depreciation adopts the straight-line depreciation
method. The Company determines its service life and anticipated net residual value according to the nature and service condition of
the productive biological assets and the anticipated implementation way of the related economic interests. At the end of the year, the
Company re-checks the service life, anticipated net residual value and depreciation method of the productive biological assets, and
adjusts correspondingly if it differs from the original assessment.
The expected service life, anticipated net residual value and yearly depreciation of the productive biological assets of the Company
are as follows:
Category Estimated useful life (Year) Estimated residual rate Annual depreciation rate
Eggs 1 5% 95%
Sheep and pigs 3 5% 31.67%
On balance sheet date, the Company measures the productive biological assets in accordance with the lower one of its book value and
the recoverable amount, withdraws the provision for impairment of productive biological assets according to the balance between the
book value and the recoverable amount of the single assets. The impairment loss of the productive biological assets cannot be
reversed in the subsequent accounting periods once recognized.
Gain and disposal of the biological assets: The cost of the biological assets after changing the purposes are recognized according to
the book value at the time when changing the purposes; when the biological assets being sold, damaged or having inventory losses,
reckon the balance after deducting the book value and related taxes and dues from the disposal consideration in the current profit and
loss.
20. Oil and gas assets
Nil
21. Intangible assets
(1) Pricing method, service life and impairment test
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the Company, including
land use right and non-patented technology etc.
1. Initial measurement of intangible assets
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments attributable to predicted
purpose obtained should recognized as cost for this assts. For those purchased amount that paid overdue exceeded the normal credit
condition, owns financing natures actually, the cost should be recognized based on the current value while purchased
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the fair value of the
intangible assets shall be based to determine the accounting value. The difference between the carrying value of restructured debt and
the fair value of the intangible assets use for settlement of debt shall be recorded in current gains and losses.
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东沣科技集团股份有限公司 2017 年半年度财务报告
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the assets exchanged in
or out can be measured reliably, the intangible assets exchanged in through non-monetary assets exchange are accounted at the value
based on the fair value of assets exchanged out, unless there is obvious evidence showing the fair value of assets exchanged in is
more reliable; for non-monetary assets exchange not qualifying for the preceding conditions, the carrying value of assets exchanged
out and related taxes payable shall be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise mergered under common control, recognized book-keeping value by the book value
of mergered party; Intangible assets obtained by means of enterprise mergered under different control, recognized book-keeping
value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register charge for
development; amortization for other patent and concession used and interest expense satisfying the capitalization condition during
process of development; other directly expense before reached its predated useful purpose.
2. Subsequent measurement
Analysis and determined the service life for intangible assts while obtained. And classified into intangible assets with limited useful
life and assets without certain service life
(1) Intangible assets with limited useful life
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they become useable to the
end of expected useful life. Particular about the estimation on intangible assets with limited service life:
Item Predicted useful life Basis
Patent right, trademark right, non-patents 5-year
Within the terms of contractual rights or other statutory rights
and outsourcing software
Land use right 50-year Within the terms of contractual rights or other statutory rights
At end of year, revising will be performed on the useful life of intangible assets with limited useful life and the methods of
amortizing.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as previous.
(2) Judgment basis of criterion for intangible assets without certain service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic benefits are viewed as
intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at the end of each
accounting period. In case that it is still determined as indefinite after such re-review, then impairment test will be conducted
continuously in every accounting period.
At end of year, revising will be performed on the useful life of intangible assets with uncertain life.
The Company has no such intangible assets without certain service life after review.
(2) Accounting policy for expenditure of internal R&D
1. Detail standard for classification on research stage and exploitation stage
Research stage: stage of the investigation and research activities exercising innovative-ness for new science or technology knowledge
obtained and understanding.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products that by research
results or other knowledge adoption in certain plan or design before the commercial production or usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while occurred.
2. Standards for capitalization satisfaction of expenditure in exploitation state
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
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东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) Way of profit generated including: show evidence that the products generated from the intangible assets owes a market or owes a
market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible assets and has the
ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
22. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is indication of
impairment, the Company would estimate its recoverable amount based on single asset; if it is difficult to estimate the recoverable
amount of single asset, then the assets group which the single asset belongs to is based to determine the recoverable amount of the
assets group.
Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of its predicted future
cash flow.
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than carrying value, and then
the carrying value shall be deducted to recoverable amount, with the deducted amount recognized as impairment loss which is
included in current period gains and losses, meanwhile, asset impairment provision shall be made accordingly. Once recognized,
asset impairment loss would not be reversed in future accounting period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in future periods, so as to
systematically allocate the adjusted asset carrying value (after deduction of predicted net residual value) during the remaining useful
life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested annually for impairment
whether or not there is indication of impairment.
Goodwill is tested for impairment with the related assets group. When conducting impairment test for relevant asset group with
inclusion of goodwill, in case that there is indication of impairment for such asset group, impairment test would be firstly conducted
in respect of the asset groups without inclusion of goodwill. Then, it shall calculate the recoverable amount and determine the
corresponding impairment loss as compared to its carrying value. Second, asset group with inclusion of goodwill would be tested for
impairment. If it is found after comparison between the carrying value and recoverable amount of the asset group that the recoverable
amount is less than carrying value, the Company would recognize impairment loss for goodwill.
23. Long term prepaid expense
1. Amortization method
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the current and later
periods with amortization period exceeding one year. Long term prepaid expense amortized on straight-line method by stages in
benefit period.
2. Amortization term
Amortized equally during the benefit period for those long-term expenses whose has a defined benefit period, for those without a
defined benefit period, amortized equally within 5 years.
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东沣科技集团股份有限公司 2017 年半年度财务报告
24. Staff remuneration
(1) Accounting treatment of short-term remuneration
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months after the end of
annual reporting period in which staff provides relevant services, other than post office benefit and dismissal benefits. The Company
recognizes short term remuneration payables as liabilities during the accounting period during which staff provides services, and
includes in cost and expense of relevant asset according to the beneficial parties of such services.
(2) Accounting treatment of post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision of service upon
retirement or release of employment, other than short term remuneration and dismissal benefits. Post benefit plan is categorized as
defined withdraw plan and defined benefit plan.
Defined withdraw plan under post office benefit mainly represents participation into social basic pension insurance and
unemployment insurance operated by labor and social security authorities. During the accounting period when employee provides
services for the Company, the contribution calculated under defined withdraw plan would be recognized as liabilities and included in
current gains and losses or relevant asset cost.
Defined benefit plans for post-employment benefits are primarily clear and standard outside-plan welfare to pay the retirees and pay
the living expenses for the deceased employees’ family members. For the obligation assumed in the defined benefit plans, the
independent actuaries will accurately calculate by using the expected cumulative actuarial unit credit method on the balance sheet
date, attribute the benefit obligations arising from defined benefit plan to the period of employee providing services, and include in
the current profit or loss or associated asset cost, thereinto, unless other accounting standards require or allow the employee benefits
costs to be included in the asset cost, the service costs of defined benefit plans and the net interest of net indebtedness and net assets
of defined benefit plans should be included in the current profit and loss in the current occurrence period; changes in the net
indebtedness and net assets of re-measured defined benefit plans should be included in the other comprehensive income in the current
occurrence period, and are not allowed to switch back to profit and loss in the follow-up accounting period.
(3) Accounting treatment of dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as compensation for
their willing of cut, if the Company cannot recall the dismissal unilaterally or re-organization-related costs with dismissal benefit
involved in cutting down, the liability arising from compensation for recognition of labor relationship released, reckoned into current
gains/losses at the same time.
(4) Accounting treatment of other long term staff benefits
The Company has no other long term staff benefits.
25. Accrual liability
When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization events, if such events may
require delivery of assets or rendering of services in the future and the amounts of such events can be reliably measured, accrued
liabilities are recognized.
1. Recognition criteria of accrued liability
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东沣科技集团股份有限公司 2017 年半年度财务报告
The Company recognizes the accrued liabilities when obligations related to contingencies satisfy all the following conditions:
This obligation is a present obligation of the Company;
The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
The amount of the obligation can be measured reliably.
2. Method of measuring of accrued liabilities
Accrued liabilities shall be initially measured at the best estimate of the expenditure required to settle the related present obligation.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with respect to contingencies,
uncertainties and the time value of money. If the time value of money is significant, the best estimate shall be determined after
discounting the relevant future outflow of cash.
The best estimate will be dealt with separately in the following circumstances:
The expenses required have a successive range (or band), in which the possibilities of occurrence of each result are the same, and the
best estimate should be determined as the middle value for the range, i.e. the average of the upper and lower limit.
The expenses required does not have a successive range (or band), or although there is a successive range (or band), the possibilities
of occurrence of each result are not the same, if the contingency is related to individual item, the best estimate should be determined
as the most likely amount; where the contingency is related to a number of items, the best estimate should be calculated and
determined according to the possible results and the relevant possibilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company is expected to be compensated
by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the compensation
will be received. The amount recognized for the compensation should not exceed the book value of the estimated liability.
26. Share-based payment
1. Category of share-based payment
Share-based payment of the Company divided into share-based payment settled by equity and by cash
2. Determination of fair value of equity instruments
If there is an active market for an equity instrument granted such as share option, the quoted price in the active market is used to
establish the fair value of the equity instrument. If there is no active market for the equity instrument granted such as share option,
the option pricing model is used to determine the fair value. Option pricing model is elected after taking into account the following
factors: (1) Exercise price of the option; (2) Effective period of the option; (3) Prevailing price of the subject shares; (4) Predicted
fluctuation rate of share prices; (5) Predicted dividend of shares; (6) Risk-free interest rate of the option in effective period.
When determining fair value of equity instruments on the date of grant, influences from market conditions among conditions
available for exercising rights and those not available for exercising rights as provided in share-based payment agreement should be
considered. If there is condition not available for exercising rights in respect of share-based payment, cost expenses attributable to
services received can be recognized provided that employees or other parties satisfy all the non-market conditions among conditions
available for exercising rights (such as service term).
3. Bases for determining the best estimate for exercisable equity instruments
On each balance sheet date during the vesting period, best estimate shall be made based on the latest available information on change
of employees who are entitled to exercise right, and number of exercisable equity instruments shall be amended accordingly. On
exercise date, number of the final predicted exercisable equity instruments shall accord to the actual number of exercisable
instruments.
4. Accounting treatment method
Equity-settled share-based payment is measured at fair value of equity instruments granted to staff. For equity instruments which are
exercisable immediately upon grant, they are included in relevant costs or expenses at fair value of the instruments as of the date of
grant, with increase of capital reserve accordingly. For instruments for which exercise is conditional upon completion of service in
vesting period or satisfaction of required results, services received in current period are included in relevant costs or expenses and
51
东沣科技集团股份有限公司 2017 年半年度财务报告
capital reserve at the fair value of the equity instrument as of the date of grant based on the best estimate of the numbers of
exercisable equity instruments on each balance sheet date during the vesting period. Recognized relevant costs or expense and total
owners’ equity will not be adjusted after the exercise date.
The cash-settled share-based payment shall be measured at the fair value of liabilities identified on the basis of shares or other equity
instruments undertaken by the Group. For the instruments that may be exercised immediately after the grant, the fair value shall, on
the date of the grant, be recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For instruments
that cannot be exercised until the services are fully provided during vesting period or specified performance targets are met, on each
balance sheet date within the vesting period, the services acquired in the current period shall, based on the best estimate of the
number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities at the fair value of
the liability incurred by the Group. The Group shall, on each balance sheet date and on each account date prior to the settlement of
the relevant liabilities, re-measure the fair values of the liabilities and include the changes in the profit or loss for the period.
5. Amendment and relevant accounting treatment for those with amendment clauses and condition concerned
During the vesting period, where an equity instrument award 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 included immediately into the profit or loss for the period and capital reserve is
recognized. Where employees or other parties are permitted to choose to fulfill non-vesting conditions but have not fulfilled during
the vesting period, equity instrument award are deemed cancelled.
27. Other financial instruments, such as preferred stock, perpetual debt, etc.
Nil
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
Real estate industry
Revenue of the Company mainly including revenue from goods selling, sale of real estate, and revenue from property rent-out and
labor service revenue etc.
1. Recognition standards of income from commodity sales:
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved neither continuous
management power nor effective control over the goods, incoming payment can be measured reliably, relative financial benefit
possibly inflow to the company, cost occurred or will occur can be reliably measured, sales income of goods is recognized.
2. Sales revenue recognition for property industry:
(1) Construction completion and qualified acceptance of properties;
(2) Commercial property pre-sale license granted by relevant state resources and housing bureau;
(3) Enter into sales contract;
(4) Sales contract has been certified and confirmed by property exchange center;
(5) Receive property price or obtain payment certificate from buyers;
(6) Complete deliver procedure for commercial properties.
Upon satisfaction of all the above conditions, the Company recognizes sales revenue
3. Recognition of property leasing revenue:
Property leasing revenue is recognized when the Company receives rental or obtain payment certificate from buyers based on the
payment date and rental amount to be paid by lessee as provided in the contract or agreement entered into between the Company and
the lessee.
52
东沣科技集团股份有限公司 2017 年半年度财务报告
4. Labor service revenue
(1) Income of the contract can be measured reliably
(2) Financial benefit attached to the contract is possibly inflow to the company
(3) Schedule of the contracted project can be determined reliably;
(4) And the relevant amount of cost incurred or to be incurred can be measured reliably
5. Recognition basis of revenue from transferring the use right of assets
The economic benefits related to transactions are probable to flow into the Company; and amount of revenue can be measured
reliably.
29. Government grants
(1) Criterion and accounting treatment on government grants with assets concerned
Government grants means the monetary or non-monetary assets obtained free by an enterprise from the government, but excluding
the capital invested by the government as the owner of the enterprise. According to the subsidy object from relevant government
documents, the government grants consist of the government grants pertinent to assets and government grants pertinent to income.
The government grants with assets concerned, will recognized as deferred income, and reckoned into non-operation revenue by the
use of terms for those assets constructed or purchased
(2) Criterion and accounting treatment on government grants with revenue concerned
As for the government grants with income concerned, the relevant expenses or losses compensate in follow period, shall be
recognized as deferred income while required, and reckoned into non-operation revenue in period when relevant expenses recognized;
the relevant expenses or losses compensate, reckoned into current non-operation revenue while acquired.
30. Deferred income tax assets / Deferred income tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized according to the balance between the tax base and the
book value of assets and liabilities (temporary differences). At the balance sheet date, the deferred tax assets and deferred tax
liabilities are measured by the applicable tax rate during the period of expected recovery of assets or clearing off the liability.
(1) The basis for confirming deferred tax assets
The Company takes the taxable income which is likely to be obtained for deducting the deductable temporary differences and can
carry over the deductable loss and tax credits as the limit to confirm the deferred income tax assets generated by deductable
temporary differences. However, the deferred income tax assets generated by the initial recognition of assets or liabilities in the
transactions with following characteristics shall not be recognized: (1) The transaction is not a business combination; (2) The
occurrence of transaction affects neither the accounting profit nor the taxable income or deductible loss.
For the deductible temporary differences associated with investments in associated enterprises and satisfying the following
conditions, confirm the corresponding deferred income tax assets: temporary difference is likely to be reversed back in the
foreseeable future, and it is likely to obtain the taxable income used for deducting the deductable temporary differences in the future.
(2) The basis for confirming deferred tax liabilities
The company recognizes the currently and previously payable but not paid taxable temporary differences as the deferred income tax
liabilities. But not including:
(1) The temporary differences formed in the initial recognition of goodwill;
(2) Transactions or events formed by non-business combination, and it affects neither the accounting profit nor the temporary
differences formed by taxable income (or deductible loss) when the transactions or events occur;
53
东沣科技集团股份有限公司 2017 年半年度财务报告
(3) For the taxable temporary differences related to the subsidiary companies and investments in associated enterprises, the reversal
time of this temporary difference can be controlled and this temporary difference is unlikely to be reversed back in the foreseeable
future.
(3) Deferred tax assets and liabilities are offset if all the following conditions are met
(1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period by net amount;
(2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally enforceable right or set off
current income tax assets against current income tax liabilities, and different taxable entities which either intend to settle the current
income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
31. Lease
(1) Accounting treatment of operation lease
In terms of tenancy, if all risks and remuneration with ownership of the leasing assets concerned are transfer to the lessee
substantially, the leasing will consider as finance lease, otherwise consider as operation lease.
(1) The lease payment paid for leasing assets is amortized under straight line method in the entire lease period without deduction of
lease-for-free period, and is recorded in current expenses. The initial direct expenses paid by the Company related to lease
transactions shall be recorded in current expenses.
If asset leaser assumes the lease related expenses which shall be assumed by the Company, the Company shall deduct such expenses
from the total rental and amortize based on the deducted rental expenses during the lease period and record in current expenses.
(2) The lease fee collected by the Company for assets lease is amortized under straight line method in the entire lease period without
deduction of lease-for-free period, and is realize as lease income. The initial direct expenses paid by the Company related to lease
transactions shall be recorded in current expenses; for significant amount, it shall be capitalized and recorded in current income in
phases under the same basis as realization of lease income in the entire lease period.
If the Company assumes the lease related expenses which shall be assumed by the lessee, the Company shall deduct such expenses
from the total rental income and allocate based on the deducted rental expenses during the lease period.
(2) Accounting treatment of financing lease
(1) Assets leased by financing lease: the Company accounts the leased assets at the lower of the fair value of leased assets and
present value of the minimum lease payment on the inception date of the lease, and the minimum lease payment is deemed as the
accounting value of long term account payables, and the difference is taken as unrealized financing expenses.
The Company amortizes the unrealized financing expenses at effective interest rate method in the asset lease period and records in
finance expenses.
(2) Assets leased out by financing lease: on the inception date of the lease, the Company realizes the difference between the sum of
financing lease account receivables and unguaranteed remaining value and its present value as unrealized financing income which is
conformed as lease income in future periods involving lease. The initial direct expenses occurred by the Company related to lease
transaction shall be recorded in the initial measurement of financing lease account receivables. And income realized in lease period
shall be reduced accordingly.
32. Other important accounting policies and accounting estimates
Nil
54
东沣科技集团股份有限公司 2017 年半年度财务报告
33. Changes of main accounting policy and estimate
(1) Changes of accounting policies
□ Applicable √ Not-applicable
(2) Changes in accounting estimates
□ Applicable √ Not-applicable
34. Other
Nil
VI. Taxes
1. Main tax category and tax rate
Taxes Basis Rate
Sales of goods, taxable sales service
VAT income, intangible assets or immovable 3%-17%
property
Urban maintenance and construction tax Turnover tax payable 5%
Enterprise income tax Taxable income 16.5%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Rental income or original value of the
Property tax 12% or 1.2%
property
Land appreciation tax Appreciation value or pre-requisitioned Progressive rates
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations:
Taxpaying body Rate for income tax
The Company 25%
Nanjing Trade 25%
Dongfeng Investment 25%
Ecological Agriculture 25%
Hangzhou Dongfeng 25%
Nanjiang Asia 16.5%
Nanjiang Technology 25%
Huijing Property 25%
55
东沣科技集团股份有限公司 2017 年半年度财务报告
Kefeng Engineering 25%
Kefeng Trade 25%
Chengde Kefeng 25%
2. Tax preference
3. Other
Nanjiang Asia tax in Hong Kong Special Administrative Region with rate of 16.5% for income tax.
VII. Notes to the main items of consolidate financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash 39,802.86 33,804.54
Bank deposit 153,562,617.75 126,937,030.29
Other monetary funds 6,663,127.40 5,999,327.40
Total 160,265,548.01 132,970,162.23
Other explanation
Monetary fund with restrictions:
Item Ending balance Opening balance
Margin of housing mortgage 6,663,127.40 5,999,327.40
Total 6,663,127.40 5,999,327.40
Closing balance of monetary fund increased 27,295,385.78 Yuan over that of period-begin with 520.53% up, mainly because revenue
from real estate in the period increased than the input declined.
2. Accounts receivable
(1) Accounts receivable by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
56
东沣科技集团股份有限公司 2017 年半年度财务报告
Accounts receivable
with large single
2,320,04 2,320,04 2,320,0 2,320,047
amount and accrued 94.66% 100.00% 94.74% 100.00%
7.40 7.40 47.40 .40
for provision of bad
debt on a single basis
Accounts receivable
accrued for provision 130,971. 50,887.1 128,771
5.34% 38.85% 80,084.75 5.26% 50,887.10 39.52% 77,884.75
of bad debt by 85 0 .85
portfolio
2,451,01 2,370,93 2,448,8 2,370,934
Total 100.00% 96.73% 80,084.75 100.00% 96.82% 77,884.75
9.25 4.50 19.25 .50
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable □ Not-applicable
In RMB
Accounts receivable Ending balance
(unit) Accounts receivable Provision for bad debts Provision ratio Reasons
Beijing Xiangeqing
Industrial & Trade Co., 2,320,047.40 2,320,047.40 100.00% Estimated uncollectible
Ltd.
Total 2,320,047.40 2,320,047.40 -- --
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
In RMB
Ending balance
Aging
Accounts receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 8,302.51 305.13 3.68%
1-2 years 50,339.00 10,067.80 20.00%
2-3 years 63,632.35 31,816.18 50.00%
Over 3 years 8,697.99 8,697.99 100.00%
Total 130,971.85 50,887.10 38.85%
Portfolio recognized:
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
(2) Provision for bad debts accrued, regain or switch back in the Period
In the Period, 0 Yuan accrued for provision of bad debts; 0 Yuan provision for bad debts regains or switch back in the Period.
57
东沣科技集团股份有限公司 2017 年半年度财务报告
Including major amount of bad debt provision regain or switch back in the Period:
In RMB
Unit Amount regain or switch back Way of regain
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Arising from related
Unit Nature Amount written off Reasons Procedures
transaction (Y/N)
Explanation on written off:
(4) Top five account receivables collected by arrears party at ending balance
Unit Ending balance Ratio in account receivable Bad debt provision
at period-end (%) accrued
Customer I 2,320,047.40 94.66% 2,320,047.40
Customer II 74,188.85 3.03% 34,488.70
Customer III 44,172.00 1.80% 8,834.40
Customer IV 12,611.00 0.51% 7,564.00
Total 2,451,019.25 100.00% 2,370,934.50
(5) Account receivable de-recognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
3. Prepayments
(1) Aging analysis of repayment
In RMB
Ending balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 97,609.01 90.51% 18,243,428.68 99.96%
2-3 years 10,229.07 9.49% 6,899.45 0.04%
Total 107,838.08 -- 18,250,328.13 --
58
东沣科技集团股份有限公司 2017 年半年度财务报告
Reasons for significant repayment with over one year age without settle:
(2) Top five prepayment collected by objects at ending balance
Unit Ending amount Ratio in prepayment Time of repayment Un-settle
(%) reasons
Unit I 48,510.00 44.98% Within 1 year Un-settled
Unit II 37,795.80 35.05% Within 1 year Un-settled
Unit III 6,537.13 6.06% 1-2 years Un-settled
Unit IV 5,000.00 4.64% Within 1 year Un-settled
Unit V 3,370.00 3.13% Within 1 year Un-settled
Total 101,212.93 93.86% --- ---
Other explanation:
Prepayment decreased 18,142,490.05 Yuan over that of period-begin with 99.41% down, mainly because the account paid to Emast
and Shan’xi Emast for the airship last period are refund in the period
4. Other account receivables
(1) Other account receivables by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
Other receivables
with large single
2,709,27 2,709,27 2,709,2 2,709,273
amount and accrued 3.71% 100.00% 3.72% 100.00%
3.00 3.00 73.00 .00
for provision of bad
debt on a single basis
Other receivables
accrued for provision 68,241,0 170,334. 68,070,70 67,638, 170,334.5 67,467,772.
93.48% 0.25% 93.00% 0.25%
of bad debt by 42.23 55 7.68 107.30 5 75
portfolio
Other receivables
with minor single
2,046,95 2,046,95 2,384,6 2,046,957
amount but accrued 2.81% 100.00% 3.28% 85.84% 337,740.65
7.70 7.70 98.35 .70
for provision of bad
debt on a single basis
Total 72,997,2 100.00% 4,926,56 6.84% 68,070,70 72,732, 100.00% 4,926,565 6.77% 67,805,513.
59
东沣科技集团股份有限公司 2017 年半年度财务报告
72.93 5.25 7.68 078.65 .25 40
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable □ Not-applicable
In RMB
Other account Ending balance
receivables (by unit) Other account receivable Provision for bad debts Provision ratio Reason for provision
Non-Taxable Revenue
Authority of Chengde 1,500,000.00 1,500,000.00 100.00% Estimated uncollectible
County
Claims obtained from
1,209,273.00 1,209,273.00 100.00% Estimated uncollectible
auction
Total 2,709,273.00 2,709,273.00 -- --
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
In RMB
Ending balance
Aging
Other account receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 1,725,202.66 40,891.12 2.37%
1-2 years 146,639.04 29,421.80 20.06%
2-3 years 85,043.25 42,521.63 50.00%
Over 3 years 57,500.00 57,500.00 100.00%
Total 2,014,384.95 170,334.55 8.46%
Portfolio recognized:
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
√Applicable □ Not applicable
Portfolio Ending balance
Other accounts receivable Provision for bad debts Provision ratio (%)
Land reserve center of Chengde County 66,025,400.00 --- ---
Chengde Petroleum Branch 110,836.28 --- ---
Office of material reformation for wall 90,421.00 --- ---
in the County
Total 66,226,657.28 --- ---
60
东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Bad debt provision accrual collected or switch back
There is 0 Yuan provision for bad debts accrued in the Period; and 0 Yuan regains or switch back in the Period.
Including the followed significant amount:
In RMB
Unit Regains or switch back Way of regain
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written-off
Major other account receivables written-off:
In RMB
Arising from related
Name Nature Amount written-off Reasons Procedures
transaction (Y/N)
Explanation on other account receivable:
(4) Other account receivables category by nature of money
In RMB
Nature of money Ending book balance Beginning book balance
Land acquisition account 66,025,400.00 66,025,400.00
Margin 1,550,000.00 1,570,000.00
Debt auction 1,209,273.00 1,209,273.00
Other 4,212,599.93 3,927,405.65
Total 72,997,272.93 72,732,078.65
(5) Top five other account receivables collected by arrears party at ending balance
In RMB
Proportion in total Ending balance of
Unit Nature Ending balance Aging
other receivables bad debt provision
Payment for land
Unit I 66,025,400.00 2-3 years 90.45%
acquisition
Margin for land
Unit II 1,500,000.00 2-3 years 2.05% 1,500,000.00
bidding
Unit III Other 642,689.25 3-4 years 0.88% 642,689.25
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东沣科技集团股份有限公司 2017 年半年度财务报告
Unit IV Other 356,838.00 4-5 years 0.49% 356,838.00
Unit V Other 300,000.00 4-5 years 0.41% 300,000.00
Total -- 68,824,927.25 -- 94.29% 2,799,527.25
(6) Account receivables related to government subsidies
In RMB
Time and amount
Unit Item Ending balance Ending age
collected and basis
(7) Other receivable for termination of confirmation due to the transfer of financial assets
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
5. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
Yes
(1) Classification of inventories
The Company is comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.3-engaged in real estate business for the listed companies”
By nature:
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Development cost 279,423,016.25 279,423,016.25
Development
285,724,897.50 285,724,897.50 61,074,784.71 61,074,784.71
products
Raw materials 85,993.85 85,993.85 205,531.64 205,531.64
Production costs 1,392,589.77 1,392,589.77 83,168.30 83,168.30
Stock products 18,786.95 3,960.15 14,826.80 1,158,462.11 229,002.27 929,459.84
Revolving
18,498.40 18,498.40
materials
Consumptive
5,600.00 5,600.00
biological assets
62
东沣科技集团股份有限公司 2017 年半年度财务报告
Total 287,222,268.07 3,960.15 287,218,307.92 341,969,061.41 229,002.27 341,740,059.14
Disclose of “development cost” and interest capitalization rate:
In RMB
Cumulati Including:
Increase
Estimated Switch to ve amount of
Estimated Other in Period
Name of Time to total Opening developm Ending amount of interest Source of
completio decrease (develop
project start investmen balance ent balance interest capitalizat funds
n time in Period ment
t products capitalize ion in
costs)
d Period
Disclose of “Development products”:
In RMB
Time of
Name of project Opening balance Increased in Period Decreased in Period Ending balance
completion
Huijing Tiandi 2016-12-31 61,074,784.71 308,491,948.52 83,841,835.73 285,724,897.50
Total -- 61,074,784.71 308,491,948.52 83,841,835.73 285,724,897.50
Disclosed the “installment development products”, “rental development products” and “relocation housing”:
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
(2) Inventory depreciation reserve
Accrual of the inventory depreciation reserve:
By nature:
In RMB
Increased in Period Decreased in Period
Opening
Item Reversing or Ending balance Note
balance Accrual Other Other
write-off
Stock products 229,002.27 225,042.12 3,960.15
Total 229,002.27 225,042.12 3,960.15 --
By project:
In RMB
Increased in Period Decreased in Period
Opening
Item Reversing or Ending balance Note
balance Accrual Other Other
write-off
63
东沣科技集团股份有限公司 2017 年半年度财务报告
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
(4) Inventory constrained
Disclosure by items:
In RMB
Item Opening balance Ending balance Reasons of restricted
(5) Assets completed without settlement from construction contract at period-end
In RMB
Item Amount
Other explanation:
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
6. Non current assets due within one year
In RMB
Item Ending balance Opening balance
Gains/losses of assets ready for disposal 333,716.08 333,716.08
Total 333,716.08 333,716.08
Other explanation:
Refers to the gains/losses of assets ready for disposal from third –grade subsidiary Chengde Dongfeng Ecological Agriculture Co.,
Ltd. in the period
7. Other current assets
In RMB
Item Ending balance Opening balance
Taxes paid in advance 9,368,662.98 19,177,045.07
Total 9,368,662.98 19,177,045.07
Other explanation:
Decreased 9,808,382.09 Yuan over that of period-begin with 51.15% down, mainly because amount paid in advance from Huijing
Tiandi are transfer to income, the taxes declined as a result.
64
东沣科技集团股份有限公司 2017 年半年度财务报告
8. Financial assets available for sale
(1) Financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation Depreciation
Book balance Book balance Book balance
reserves reserves reserves
Instrument equity
25,000,000.00 2,215,868.07 22,784,131.93 25,000,000.00 2,215,868.07 22,784,131.93
available for sale:
Measured by cost 25,000,000.00 2,215,868.07 22,784,131.93 25,000,000.00 2,215,868.07 22,784,131.93
Total 25,000,000.00 2,215,868.07 22,784,131.93 25,000,000.00 2,215,868.07 22,784,131.93
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument debt available
Type Total
available for sale for sale
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-holdi Current
Investee
Current Current Current Current ng in cash
unit Opening Closing Opening Closing
increased decreased increased decreased invested dividend
entity
Dongguan
Dongfeng
New 25,000,000 25,000,000 2,215,868. 2,215,868.
2.44%
Energy .00 .00 07 07
Technolog
y Co. Ltd.
25,000,000 25,000,000 2,215,868. 2,215,868.
Total --
.00 .00 07 07
(4) Change of financial assets depreciation for sale during reporting period
In RMB
Instrument equity Instrument debt available
Type Total
available for sale for sale
65
东沣科技集团股份有限公司 2017 年半年度财务报告
(5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without
depreciation reserves accrued
In RMB
Decline range of
Equity instrume Times continued
fair value Amount accrual Reasons for
nts project Investment cost Ending fair value to declined
compare with the for impairment un-accrual l
available for sale (Month)
cost
Other explanation
9. Long-term equity investment
In RMB
Changes in Period
Investme
nt Adjustme Impairme
Cash
Additiona gains/loss nt of Provision nt
Invested Opening Other dividend Ending
l Capital es other for provision
company balance equity or profit Other balance
investmen reduction recognize comprehe impairme at ending
changes declare to
t d by nsive nt losses balance
issue
equity income
method
I. Joint venture
II. Associated enterprise
Runhua
RW
(Tianjin)
Water-sav 1,022,730 -1,022,73
0.00 0.00
ing .46 0.46
Technolo
gy Co.,
Ltd.
Wuchan
Minfeng
4,455,549
(Tianjin) -4,455,54
.93 0.00 0.00
Chemical 9.93
Trade
Co., Ltd.
Runhua 2,790,271 2,790,271 2,790,271
RW .96 .96 .96
(Tianjin)
Internatio
66
东沣科技集团股份有限公司 2017 年半年度财务报告
nal Trade
Co., Ltd.
5,478,280 -2,688,00 2,790,271 2,790,271
Subtotal
.39 8.43 .96 .96
5,478,280 -2,688,00 2,790,271 2,790,271
Total
.39 8.43 .96 .96
Other explanation
(1) Runhua RW (Tianjin) Water-Saving Technology Co., Ltd obtained the corporation certificate on 14th Oct. 2011 with register
capital of RMB 6.3 million included, Runhua RW Industrial Development invested RMB 3 million with ratio of 47.62%. The
original company Runhua RW (Tianjin) International Trade Co., Ltd. invested RMB 2 million with ratio of 31.75% in registered
capital; Langfang ChunYuan Minor Watering Engineer Co., Ltd invested RMB one million with ratio of 15.87% and Zhang Heping
invested RMB 300,000 with ratio of 4.76% in registered capital.
(2) Wuchan Minfeng (Tianjin) Chemical Trade Co., Ltd had risen up the register capital of shareholders on 21st Dec. 2012, totaling
RMB 9 million included, Shanxi Wuchan Minfeng Chemistry Co., Ltd invested RMB 4.59 million with ratio of 51%. The original
company Runhua RW (Tianjin) International Trade Co., Ltd. invested RMB 4.41 million with ratio of 49% in registered capital.
(3) On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the shareholder
Lan Chunhong of original subsidiary Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original
Concerted Action Person Agreement, both parties no longer maintain the concerted actions to the company’s daily production and
operation and the decision-making of other major matters, and each party makes opinions independently and exercises the right to
vote in accordance with the laws and regulations and normative documents and the provisions of the articles of association and their
own wishes, both parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action
person relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control
power to Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the
date of losing the control power to it, and check and calculate by equity method.
10. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not-applicable
In RMB
Item Houses, buildings Land use right Construction in process Total
I. Original book value:
1.Opening balance 5,475,870.75 5,475,870.75
2. Increased in Period
(1) Outsourcing
(2) Inventory \
Fixed assets \ Transferred
from construction in
process
67
东沣科技集团股份有限公司 2017 年半年度财务报告
(3) Increased by
enterprise combination
3. Decreased in
Period
(1) Disposal
(2) Other
transfer-out
4. Ending balance 5,475,870.75 5,475,870.75
II. Accumulated
depreciation and
accumulated
amortization
1. Opening balance 644,717.00 644,717.00
2. Increased in Period 56,280.12 56,280.12
(1) Provision or
56,280.12 56,280.12
amortization
3. Decreased in
Period
(1) Disposal
(2) Other
transfer-out
4. Ending balance 700,997.12 700,997.12
III. Depreciation reserves
1. Opening balance
2. Increased in
Period
(1) Accrual
3. Decreased in
Period
(1) Disposal
(2) Other
transfer-out
68
东沣科技集团股份有限公司 2017 年半年度财务报告
4. Ending balance
IV. Book value
1. Ending book value 4,774,873.63 4,774,873.63
2. Opening book value 4,831,153.75 4,831,153.75
(2) Investment real estate measured by fair value
□ Applicable √ Not applicable
The Company needs to comply with the disclosure requirement of “Guidelines for the Information Disclosure of the Shenzhen Stock
Exchange No.3 – Listed Company Engaged in Real Estate Business”
Investment real estate measured by fair value released by items as:
In RMB
Fair value
Geographi Rental
Covered at Fair value at Change of fair Reasons of changes
Item cal income in
area period-begi period-end value and report index
position the period
n
Whether the Company has new real estate measured by fair value in the period or not
□ Yes √ No
(3) Investment real estate without ownership certification completed yet
In RMB
Item Book value Reasons
Other note
11. Fixed assets
(1) Fixed assets
In RMB
Houses and Machinery Transportation
Item Other Total
buildings equipment equipment
I. Original book
value:
1.Opening balance 13,678,422.66 2,032,443.28 4,288,676.71 801,523.65 20,801,066.30
2. Increased in
194,529.92 12,296.58 206,826.50
Period
(1) Purchase 194,529.92 12,296.58 206,826.50
69
东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Transferred
from construction in
process
(3) Increased by
enterprise
combination
3. Decreased in
673,859.00 178,432.47 852,291.47
Period
(1) Disposal or
scrap
(2) Other
673,859.00 178,432.47 852,291.47
transfer-out
4. Ending balance 13,678,422.66 2,226,973.20 3,614,817.71 635,387.76 20,155,601.33
II. Accumulated
depreciation
1. Opening
2,157,487.89 1,195,831.33 1,918,422.13 549,064.62 5,820,805.97
balance
2. Increased in
264,051.79 43,718.58 160,589.10 34,660.25 503,019.72
Period
(1) Accrual 264,051.79 43,718.58 160,589.10 34,660.25 503,019.72
3. Decreased in
640,236.58 162,365.87 802,602.45
Period
(1) Disposal or
scrap
(2) Other
640,236.58 162,365.87 802,602.45
transfer-out
4. Ending balance 2,421,539.68 1,239,549.91 1,438,774.65 421,359.00 5,521,223.24
III. Depreciation
reserves
1. Opening
balance
2. Increased in
Period
(1) Accrual
3. Decreased in
70
东沣科技集团股份有限公司 2017 年半年度财务报告
Period
(1) Disposal or
scrap
4. Ending balance
IV. Book value
1. Ending book
11,256,882.98 987,423.29 2,176,043.06 214,028.76 14,634,378.09
value
2. Opening book
11,520,934.77 836,611.95 2,370,254.58 252,459.03 14,980,260.33
value
(2) Temporarily idle fixed assets
In RMB
Cumulative Depreciation
Item Original book value Book value Note
depreciation reserves
(3) Fixed assets acquired by financing lease
In RMB
Item Original book value Cumulative depreciation Depreciation reserves Book value
(4) Fixed assets acquired by operating lease
In RMB
Item Ending book value
(5) Fixed assets without property certificates
In RMB
Item Book value Reasons
Other explanation
12. Productive biological assets
(1) Measured by cost
√ Applicable □ Not-applicable
In RMB
Item Plantation Livestock Forestry Aquaculture Total
71
东沣科技集团股份有限公司 2017 年半年度财务报告
I. Original book
214,802.68 214,802.68
value
1. Opening
balance
2. Increased in
28,563.30 28,563.30
Period
(1) Outsourcing 28,563.30 28,563.30
(2)
Self-cultivation
3. Decreased in
197,843.42 197,843.42
Period
(1) Disposal 197,843.42 197,843.42
(2) Other
4. Ending balance 45,522.56 45,522.56
II. Accumulated
depreciation
1. Opening
172,668.92 172,668.92
balance
2. Increased in
18,019.35 18,019.35
Period
(1) Accrual 18,019.35 18,019.35
3. Decreased in
161,394.72 161,394.72
Period
(1) Disposal 161,394.72 161,394.72
(2) Other
4. Ending balance 29,293.55 29,293.55
III. Depreciation
reserves
1. Opening
balance
2. Increased in
Period
72
东沣科技集团股份有限公司 2017 年半年度财务报告
(1) Accrual
3. Decreased in
Period
(1) Disposal
(2) Other
4. Ending balance
IV. Book value
1. Ending book
16,229.01 16,229.01
value
2. Opening book
42,133.76 42,133.76
value
(2) Measured by fair value
□ Applicable √ Not-applicable
13. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent right Software Total
technology
I. Original book
value
1. Opening
1,197,567.36 228,000.00 1,425,567.36
balance
2. Increased in
Period
(1) Purchase
(2) Internal
R&D
(3) Increased
by enterprise
combination
3. Decreased in 228,000.00 228,000.00
73
东沣科技集团股份有限公司 2017 年半年度财务报告
Period
(1) Disposal
(2) Other
228,000.00 228,000.00
transfer-out
4. Ending
1,197,567.36 1,197,567.36
balance
II. Accumulated
amortization
1.Opening
124,160.15 228,000.00 352,160.15
balance
2. Increased in
20,559.04 20,559.04
Period
(1) Accrual 20,559.04 20,559.04
3. Decreased in
228,000.00 228,000.00
Period
(1) Disposal
(2) Other
228,000.00 228,000.00
transfer-out
4. Ending
144,719.19 144,719.19
balance
III. Depreciation
reserve
1. Opening
balance
2. Increased in
Period
(1) Accrual
3. Decreased in
Period
(1) Disposal
4. Ending
balance
IV. Booking value
1. Ending book 1,052,848.17 1,052,848.17
74
东沣科技集团股份有限公司 2017 年半年度财务报告
value
2. Beginning
1,073,407.21 1,073,407.21
book value
Intangible assets formulated no by means of internal R&D in balance of total intangible assets at period-end
(2) Land use right without property certificate
In RMB
Item Book value Reasons
Other explanation:
14. Development expenditure
In RMB
Opening Ending
Item Increased in Period Decreased in Period
balance balance
Airship 641,604.82 1,190,186.99 1,831,791.81
Other explanation
15. Goodwill
(1) Original book value of goodwill
In RMB
Name of invested
company or items Opening balance Increased in Period Decreased in Period Ending balance
formed goodwill
Runhua RW 1,809,762.89 1,809,762.89
Total 1,809,762.89 1,809,762.89
(2) Impairment loss of goodwill
In RMB
Name of invested
company or items Opening balance Increased in Period Decreased in Period Ending balance
formed goodwill
Runhua RW 1,809,762.89 1,809,762.89
Total 1,809,762.89 1,809,762.89
Process of impairment testing, parameter and recognization method for impairment losses:
Other explanation
75
东沣科技集团股份有限公司 2017 年半年度财务报告
Runhua RW has deficit in 2014 and 2015 continuously, and did not complete the performance commitment; goodwill has
impairment.
16. Long-term unamortized expenses
In RMB
Item Opening balance Increased in Period Amortized in 2015 Other decrease Ending balance
Office remodeling
105,268.54 26,654.27 78,614.27
costs
Outdoor project cost
49,500.04 2,472.41 47,027.63
for boiler room
Color steel room 5,242.29 903.80 4,338.49
Total 160,010.87 30,030.48 129,980.39
Other explanation
17. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Preparations of assets
3,102,581.64 775,645.41 3,102,581.64 775,645.41
depreciation
Total 3,102,581.64 775,645.41 3,102,581.64 775,645.41
(2) Deferred income tax liabilities un-offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
76
东沣科技集团股份有限公司 2017 年半年度财务报告
Deferred income tax
775,645.41 775,645.41
assets
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences -75,878.20 -75,878.20
Deductible losses 88,611,454.74 96,377,902.07
Total 88,535,576.54 96,302,023.87
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2017 12,891,377.63
2018
2019 30,576,125.82 30,576,125.82
2020 33,429,382.84 33,429,382.84
2021 19,481,015.78 19,481,015.78
2022 5,124,930.30
Total 88,611,454.74 96,377,902.07 --
Other explanation:
18. Other non-current assets
In RMB
Item Ending balance Opening balance
Account paid in advance for equipment 91,040.00
Total 91,040.00
Other explanation:
19. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
77
东沣科技集团股份有限公司 2017 年半年度财务报告
Account payable for engineering 20,029,823.67 12,446,199.86
Account payable for equipment 364,700.00 8,700.00
Account payable for materials 11,781.49 5,080.00
Other 367,994.69 429,350.00
Total 20,774,299.85 12,889,329.86
(2) Accounts payable with major amount and aging of over one year
In RMB
Item Ending balance Reasons of un-paid or carry-over
Handan Hanyi Construction Engineering
400,000.00 Settlement un-completed
Co., Ltd.
Total 400,000.00 --
Other explanation:
Account payable increased 7,884,969.99 Yuan over that of period-begin with 61.17% up, mainly because real estate was basically
completed, the payable enginneering account in settlement increased
20. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
Deposit received for house-Huijing Tiandi 187,840,560.64 242,747,445.35
Resident heating fees received in advance 98,363.28 962,488.89
Other 204,574.34 207,984.46
Total 188,143,498.26 243,917,918.70
(2) Major account received in advance for over one year age
In RMB
Item Ending balance Reasons
(3) Project closed for account without complete in construction from construction contract at period-end
In RMB
Item Amount
Other explanation:
Account received in advance decreased 55,774,420.44 Yuan over that of period-begin with 22.87% down, mainly because the
78
东沣科技集团股份有限公司 2017 年半年度财务报告
prepayment account from Huijing Tiandi project are carry forward to revenue in the period
21. Wages payable
(1) Wages payable
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
I. Short-term employee
1,915,411.19 5,476,441.95 7,216,453.26 175,399.88
benefits
II. Post-employment
benefits - defined 22,271.25 750,534.96 726,928.59 45,877.62
contribution plans
Total 1,937,682.44 6,226,976.91 7,943,381.85 221,277.50
(2) Short-term employee benefits
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1. Salary, bonus,
1,897,065.74 5,009,546.39 6,731,610.47 175,001.66
allowance and subsidy
3. Social insurance
17,419.23 181,931.04 199,350.27
premium
Of which: including:
medical insurance 15,226.28 156,291.18 171,517.46
expenses
Work
injury insurance 742.83 14,384.10 15,126.93
expenses
Maternity
1,450.12 11,255.76 12,705.88
insurance
4. Housing provident
528.00 282,575.20 283,103.20
funds
5. Labor union
expenditures and
398.22 2,389.32 2,389.32 398.22
employee education
expenses
79
东沣科技集团股份有限公司 2017 年半年度财务报告
Total 1,915,411.19 5,476,441.95 7,216,453.26 175,399.88
(3) Details of defined contribution plans
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1.Basic endowment
20,791.36 736,218.86 711,477.07 45,533.15
insurance expenses
2.Unemployment
1,479.89 14,316.10 15,451.52 344.47
insurance expenses
Total 22,271.25 750,534.96 726,928.59 45,877.62
Other explanation:
22. Tax payable
In RMB
Item Ending balance Opening balance
VAT 389,575.42 565,795.13
Individual income tax 10,199.23 1,417.40
Urban maintenance and construction tax 684.49
Educational surtax 410.70
Local educational surtax 273.80
Stamp tax 3,853.10 9,123.40
Deed tax 781,317.09
Property tax 95.24
Total 403,722.99 1,359,022.01
Other explanation:
23 .Other account payables
(1) Other account payables by nature
In RMB
Item Ending balance Opening balance
Intercourse funds 4,716,778.66 2,710,112.00
Deposit and margin 456,000.00 587,221.20
Agency fee 130,000.00 400,000.00
80
东沣科技集团股份有限公司 2017 年半年度财务报告
Withhold and remit tax 20,477.03 28,669.69
Other 878,416.69 750,861.51
Total 6,201,672.38 4,476,864.40
(2) Other payables with large amount and aging of over one year
In RMB
Item Ending balance Reason for non-repayment or carryover
Other explanation
24. Share capital
In RMB
Increased (decreased) in Period
Opening Shares
New shares Ending balance
balance Bonus shares converted from Other Sub-total
issued
public reserve
Total shares 706,320,000.00 706,320,000.00
Other explanation:
25. Capital reserves
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
Capital premium (share
397,808,090.32 397,808,090.32
premium)
Other capital reserves 65,873,219.23 65,873,219.23
Total 463,681,309.55 463,681,309.55
Other explanation, including changed in Period as well as reasons for changes:
26. Surplus reserves
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
Statutory surplus
76,791,550.17 76,791,550.17
reserves
Total 76,791,550.17 76,791,550.17
Explanation on surplus reserve, including changed in Period as well as reasons for changes:
81
东沣科技集团股份有限公司 2017 年半年度财务报告
25. Retained profits
In RMB
Item The Period Last Period
Retained profits at the end of last period before
-886,966,408.74 -890,727,215.25
adjustment
Retained profits at the beginning of the period
-886,966,408.74 -890,727,215.25
after adjustment
Add: The net profits belong to owners of patent
-3,145,668.96 3,760,806.51
company of this period
Retained profits at the end of the period -891,092,586.76 -886,966,408.74
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the
undistributed profits at the beginning of the year amounting to 0 Yuan.
2) The changes in accounting policies affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
3) The major accounting error correction affects the undistributed profits at the beginning of the year amounting to 0 Yuan.
4) Merge scope changes caused by the same control affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
5) Other adjustments affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
28. Operating income and operating cost
In RMB
The Period Last Period
Item
Income Cost Income Cost
Main business 101,493,229.09 86,731,511.45 191,078,889.32 163,101,369.56
Other business 70,765.38 37,714.74 335,592.42 81,317.07
Total 101,563,994.47 86,769,226.19 191,414,481.74 163,182,686.63
29 .Business tax and surcharges
In RMB
Item The Period Last Period
Urban maintenance and construction tax 360,349.17 497,164.44
Educational surtax 360,349.18 497,014.47
Property tax 838.10
Land use tax 127,235.53
Vehicle and vessel tax 9,880.00
Stamp duty 67,598.20
82
东沣科技集团股份有限公司 2017 年半年度财务报告
Business tax 4,938,432.50 8,296,366.53
Land VAT 1,988,303.86 3,664,665.11
Total 7,852,986.54 12,955,210.55
Other explanation:
30. Sales expense
In RMB
Item The Period Last Period
Advertising fees 88,066.00 71,975.00
Business promotion fee 113,450.00
Product packing fee 114,119.82
Transport charge 176,729.02
Lump sum 4,483.49
Salary 60,190.00
Storage fee 1,140.47
Other 200.00 200.08
Total 315,835.82 314,718.06
Other explanation:
31. Administration expenses
In RMB
Item The Period Last Period
Employee wages 3,921,799.98 6,748,266.03
Intermediary organs fee 927,762.26 1,085,483.77
Business entertainment 1,220,199.01 818,553.45
Business-travel expense 551,869.73 812,495.35
Welfare expenses 372,685.72 661,214.54
Social insurance fee 784,247.48 526,608.65
Depreciation and amortization 540,961.54 421,693.46
Office allowance 228,411.68 429,394.93
Housing fund 235,434.20 168,697.60
Low value consumables 280,130.27 219,071.44
Material consumption 339,236.49 98,279.84
Repair charge 117,778.09 98,964.60
83
东沣科技集团股份有限公司 2017 年半年度财务报告
Long-term deferred expenses 46,203.48 78,609.04
Water and electricity 38,644.36 19,077.73
Union dues 4,009.32 3,971.32
Land use tax 590,196.79
Property tax 20,558.29
Stamp tax 126,417.27
Other expense 938,821.91 901,987.20
Total 10,548,195.52 13,829,541.30
Other explanation:
32. Financial expenses
In RMB
Item The Period Last Period
Interest expenses
Less: Interest income 709,763.28 121,643.23
Profit/loss on exchange
Bank handling charges 18,493.33 19,856.39
Total -691,269.95 -101,786.84
Other explanation:
33. Asset impairment loss
In RMB
Item The Period Last Period
I. Bad debt loss -597.99
Total -597.99
Other explanation:
34. Investment income
In RMB
Item The Period Last Period
Long-term equity investment income
-12,933.77
calculated on equity method
Total -12,933.77
Other explanation:
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东沣科技集团股份有限公司 2017 年半年度财务报告
35. Non-operating income
In RMB
Amount reckoned into current
Item The Period Last Period
non-recurring gains/losses
Other 30,121.27 69,070.59
Total 30,121.27 69,070.59
Government grants reckoned into current gains/losses:
In RMB
Impact on Assets-relate
Distributed current Special d
Item Reasons Nature The Period Last Period
by gains/losses grants (Y/N) /income-relat
(Y/N) ed
Other explanation:
36. Non-operating expenditure
In RMB
Amount reckoned into current
Item The Period Last Period
non-recurring gains/losses
Other 7,113.04 339,948.94
Total 7,113.04 339,948.94
Other explanation:
37. Income tax expense
(1) Statement of income tax expenses
In RMB
Item The Period Last Period
Current income tax 8,991.27
Total 8,991.27
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item The Period
Total profit -3,207,373.43
Income tax based on statutory/applicable tax rate -801,843.36
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东沣科技集团股份有限公司 2017 年半年度财务报告
The impact of deductible losses of deferred income tax assets is
801,843.36
not confirmed in the previous period
Other explanation
38. Other comprehensive income
Found in Note
39. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item The Period Last Period
Intercourse funds 2,737,235.86 6,619,861.33
Interest income 709,446.69 122,433.28
Other 6,040,764.33 1,313,516.00
Total 9,487,446.88 8,055,810.61
Explanation on other cash received in relation to operation activities:
(2) Other cash paid in relation to operation activities
In RMB
Item The Period Last Period
Disbursement costs 4,634,876.43 10,713,299.72
Intercourse funds 832,000.00 3,632,456.94
Other 8,737,183.17 2,656,790.78
Total 14,204,059.60 17,002,547.44
Explanation on other cash paid in relation to operation activities:
(3) Cash received from other investment activities
In RMB
Item The Period Last Period
Explanation on cash received from other investment activities:
(4) Cash paid related with other investment activities
In RMB
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东沣科技集团股份有限公司 2017 年半年度财务报告
Item The Period Last Period
Explanation on cash paid related with other investment activities:
(5) Cash received from other financing activities
In RMB
Item The Period Last Period
Collected the margin of housing mortgage 753,264.46
Total 753,264.46
Explanation on cash received from financing activities:
(6) Cash paid related with other financing activities
In RMB
Item The Period Last Period
Paid the margin of housing mortgage 663,800.00 1,626,700.00
Total 663,800.00 1,626,700.00
Note of cash paid related with other financing activities:
40. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information The Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit -3,207,373.43 941,308.65
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 521,039.05 464,795.45
biology assets
Amortization of intangible assets 30,461.06 65,377.98
Amortization of long-term deferred expenses 86,310.60 94,093.00
Loss from disposal of fixed assets, intangible
assets and other long-term assets(gain is -21,731.42 74,717.58
listed with “-”)
Investment losses(gain is listed with “-”) 12,933.77
Decrease of inventory (increase is listed with
54,521,751.22 140,787,091.53
“-”)
87
东沣科技集团股份有限公司 2017 年半年度财务报告
Decrease of operating receivable accounts
17,625,680.12 -1,126,508.10
(increase is listed with “-”)
Increase of operating payable accounts
-40,868,835.51 -64,458,825.89
(decrease is listed with “-”)
Net cash flow arising from operating
28,687,301.69 76,854,983.97
activities
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 153,602,420.61 133,530,264.90
Less: Balance of cash equivalent at
126,970,834.83 84,543,677.45
year-begin
Net increase of cash and cash equivalents 26,631,585.78 48,986,587.45
(2) Net cash payment for the acquisition of a subsidiary of the current period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(3) Net cash received from the disposal of subsidiaries
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
Ⅰ. Cash 153,602,420.61 126,970,834.83
Ⅲ. Balance of cash and cash equivalent at 153,602,420.61 126,970,834.83
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东沣科技集团股份有限公司 2017 年半年度财务报告
period-end
Other explanation:
41. Notes on items of changes of owner’s equity
Name and adjusted amount on “Other” at balance of year-end of last year:
42. Assets with ownership or right-to-use restricted
In RMB
Item Ending book value Restriction reasons
Monetary fund 6,663,127.40 Margin for housing mortgage
Total 6,663,127.40 --
Other explanation:
43. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Balance of foreign currency at
Item Exchange rate convert RMB concert at Period-end
period-end
Including: USD 819,785.69 6.7744 5,553,556.18
Other explanation:
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign
main operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency
changed
□ Applicable √ Not-applicable
44. Other
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control in the period
In RMB
Time for Cost for Ratio of Way to Purchasing Basis of the Revenue of Net profit of
Acquiree
equity equity equity obtained date purchasing the acquiree the acquiree
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东沣科技集团股份有限公司 2017 年半年度财务报告
obtained obtained obtained date from from
purchasing purchasing
date to date to
period-end period-end
Other explanation:
(2) Combined cost and goodwill
In RMB
Combine cost
Explanation on determination method for fair value of combine cost, contingent consideration and its changes:
Reason of major goodwill resulted:
Other explanation:
(3) Acquiree's identifiable assets and liabilities on purchasing date
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree taken during enterprise merger:
Other explanation:
(4) Gains/losses arising from re-calculation on fair value for the equity held before purchasing date
Whether the enterprise combine through multiple transaction by steps or not and obtained controlling rights during the reporting
period
□Yes √No
(5) Explanation on the combination consideration, which is unable to confirm rationally on purchasing date
or combination date or on the fair value of identifiable assets and liabilities for the acquiree
(6) Other explanation
2. Enterprise merger under the same control
(1) Enterprise merger under the same control in the period
In RMB
Equity ratio Basis for Basis of Revenue of Net profit of Revenue of Net profit of
Combined Combination
in merger under combination the combined the combined the combined the combined
party date
combination the same date party from party from party during party during
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东沣科技集团股份有限公司 2017 年半年度财务报告
control period of period of comparative comparative
combined to combined to period period
combination combination
date date
Other explanation:
(2) Combine cost
In RMB
Combine cost
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the combined party's assets and liabilities on combine date
In RMB
Combination date End of last period
Contingent liability of the combined party taken in combination:
Other explanation:
3. Counter purchase
The basic information of transactions, the basis of transactions constituting counter purchase, whether the assets and liabilities
reserved by listed company constitute business and the basis, the confirmation of combined costs, the amount and its calculation of
adjusted equity when handling according to the equity transaction.
4. Subsidiary disposal
Whether there is a single disposal of the investment in subsidiaries that is the loss of control
□ Yes √ No
Whether there is disposal of the investment in subsidiaries through multiple transactions step by step and loss of control in the current
period
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information:
(1) Subsidiary, special purpose vehicle and operational entity with control over by means of entrusted management or lessee newly
included in the consolidate scope in the Period:
Name Change reason
Kefeng Trade Enterprise derivated
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东沣科技集团股份有限公司 2017 年半年度财务报告
Kefeng Engineering Enterprise derivated
On March 6, 2017, approved by Chengde Administration for Industry and Commerce, Chengde Nanjiang Trading Co., Ltd. was
divided into Chengde Kefeng Trading Co., Ltd., Chengde Kefeng Project Management Co., Ltd. and Chengde Nanjiang Trading Co.,
Ltd. Among them, the registered capital of Chengde Kefeng Trading Co., Ltd. is RMB 8.5 million,Dongfeng Sci-Tech Group CO.,
LTD. has a wholly-owned holding in the company, its business scope includes the sale of mechanical equipment, machine parts, and
mechanical and electrical products, and the housing leasing services; the registered capital of Chengde Kefeng Project Management
Co., Ltd. is RMB 500,000.00,Dongfeng Sci-Tech Group CO., LTD. has a wholly-owned holding in the company, its business scope
includes the project management and consulting services, the infrastructure construction, and the housing leasing services; the
registered capital of Chengde Nanjiang Trading Co., Ltd. is changed to RMB 1 million,Dongfeng Sci-Tech Group CO., LTD. has a
wholly-owned holding in the company, its business scope includes the sale of hardware and mechanical products, building materials,
and mechanical equipment, and the housing rental services.
(2) Subsidiary, special purpose vehicle and operational entity with control lost by means of entrusted management or rent-out, which
no longer include in consolidate scope in the Period:
Name Change reason
Runhua RW The Company release the consistent action with shareholder Lan
Chunhong
On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the shareholder Lan
Chunhong of Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original Concerted Action Person
Agreement, both parties no longer maintain the concerted actions to the company’s daily production and operation and the
decision-making of other major matters, and each party makes opinions independently and exercises the right to vote in accordance
with the laws and regulations and normative documents and the provisions of the articles of association and their own wishes, both
parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting Standards for
Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action person
relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control power to
Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the date of
losing the control power to it, and check and calculate by equity method.
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Enterprise merger
Nanjing
Chengde City Chengde City Commercial trade 100.00% under the same
Trading*1
control
Dongfeng Industrial
Chengde City Chengde City 100.00% Establishment
Investment*2 investment
92
东沣科技集团股份有限公司 2017 年半年度财务报告
Ecological Animal
Chengde City Chengde City 100.00% Establishment
Agriculture*3 husbandry
International
Nanjiang Asia*4 Hong Kong Hong Kong 100.00% Establishment
investment
Inflatable
Morsh capsule,
Chengde City Chengde City 100.00% Establishment
Technology *5 production and
sale of Grapheme
Huijing Property Property
Chengde City Chengde City 100.00% Establishment
*6 management
Hangzhou High-tech
Hangzhou Hangzhou 100.00% Establishment
Dongfeng*7 development
Aerospace
Chengde product
Chengde City Chengde City 100.00% Establishment
Kefeng*8 technology
development
The derived
Kefeng Trade*9 Chengde City Chengde City Commercial trade 100.00%
discrete
Engineering
Kefeng The derived
Chengde City Chengde City project 100.00%
Engineering*10 discrete
management
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other explanation:
*1 Nanjiang Trade (“Chengde Rongyida Real Estate Development Co., Ltd.” for original name) was established on 20 February 2009
with registered capital of 10 million Yuan, of which, Wang Fei invested 9 million Yuan, representing 90 percent of the registered
capital while one million Yuan contributed by Chen Liping, presenting 10 percent of the registered capital; On 27th July 2009, Wang
Fei and Chen Liping transferred all their shares to the controlling shareholder Chen Rong. At the same time, Chen Rong transferred
100% shares to Nanjiang Company with RMB1.00. After the transfer, Nanjiang Company wholly owned the Rongyida. On 3 April
2014, as approved by Industry & Commercial Bureau of Chengde County, Rongyida changed its name to Chengde Nanjiang Real
Estate Development Co., Ltd. (“Nanjiang Real Estate” for short). On 12 December 2016, being approved from Chengde
Administration for Industry and Commerce, the name of the enterprise are re-named as Chengde Nanjiang Trade and Business Co.,
Ltd (hereinafter referred to as Nanjiang Trade and Business), business cope: sales of hardware electrical, construction material and
mechanical equipment; house leasing services. In March 2017, the company separated Nanjiang Trading, Nanjiang Trading
continued to exist, with the registered capital of RMB 1 million, and derived to establish Chengde Kefeng Project Management Co.,
Ltd., with the registered capital of RMB 500,000, and Chengde Kefeng Trading Co. Ltd., with the registered capital of RMB 8.5
million. Approved by Chengde Market Supervision Authority, Nanjiang Trading has completed the relevant industrial and
commercial registration for separation.
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东沣科技集团股份有限公司 2017 年半年度财务报告
*2 Dongfeng Investment was funded and established by Nanjiang Real Estate on October 9, 2012, its original registered capital was
RMB 50 million, and the shareholder Nanjiang Real Estate invested RMB 50 million, accounting for 100% of the registered capital;
on December 21, 2012, Nanjiang Real Estate transferred 100% equity stake to Chengde Nanjiang at the cost of RMB 50 million, after
the equity transfer, Chengde Nanjiang held 100% equity stake of Nanjiang Investment, on January 6, 2013, Chengde Nanjiang
increased capital of RMB 40 million to Nanjiang Investment, and the registered capital was RMB 90 million after the capital increase.
In June 20117, approved by Chengde Administration for Industry and Commerce, the company’s name was changed to Chengde
Dongfeng Investment Co., Ltd.
*3 Ecological Agriculture was established by Nanjiang Investment on 24 October 2012, original registered capital was 5 million
Yuan, shareholder Nanjiang Investment contributes 5 million Yuan with 100 percent held in total registered capital. On 18 April
2013, Nanjiang Investment increase 5 million Yuan to Ecological Agriculture and the registered capital turns to 10 million Yuan after
increased. In June 21017, the Company changed it’s name to Chengde Dongfeng Ecological Agriculture Co., Ltd after approved by
Administrative Bureau of Industry and Commerce of Chengde County
*4 Nanjiang Asia was founded by Nanjiang Company on 14th Nov. 2013, located in Hong Kong, with register capital of US$ 20
million, the paid-up was US$ 797, 583.34.
*5 Nanjiang Technology was jointly funded the established by Nanjiang Investment and Ningbo Morsh Tech Co., Ltd. on January 24,
2013 with registered capital of RMB 50 million, of which Nanjiang Investment invested RMB 45 million in cash, accounting for 90%
of the total amount of investment, Ningbo Morsh Tech Co., Ltd. invested RMB 5 million in cash, accounting for 10% of the total
amount of investment. On September 26, 2016, approved by Chengde Administration for Industry and Commerce, agreed to change the
name of the company to Chengde Nanjiang Technology Co., Ltd. (“Nanjiang Technology” for short), the business scope changed to
the research and development, production, and sales of inflatable capsule, grapheme, grapheme application materials, power battery
and battery materials, high-performance membrane materials, and nano-materials and the technology promotion and technical services
of above-mentioned products. On July 4, 2016, Chengde Nanjiang Investment and Ningbo Morsh Tech signed an equity transfer
agreement, the agreement appointed to transfer 10% equity stake held by Ningbo Morsh Tech to Chengde Nanjiang Investment Co.,
Ltd., and Chengde Nanjiang Investment would hold 100% equity stake of Nanjiang Technology after the transfer.
*6 Huijing Property was founded by Nanjiang Investment on 18th Nov. 2013 with register capital of RMB500,000. Shareholder
Nanjiang Investment invested RMB500, 000 wholly owning it.
*7 Hangzhou Dongfeng established on 21 September 2016 by Nanjiang Co., Ltd., registered capital was 50 million Yuan; actually
paid-in capital was 30 million Yuan. Former Hangzhou Hangfeng Technology Co., Ltd. Re-named as Hangzhou Dongfeng
Technology Co., Ltd.
*8Chengde Kefeng estalibished by contribution from Nanjiang Co., Ltd. on 12 Dec. 2016. Registered captial amounted to 30
millionYuan, there are actually no fund ivnested ended as 31 Dec. 2016.
*9Kefeng Trade derivated from Nanjiang Trading on 6 March 2017, registered captial amounted as 8.5 million Yuan.
*10Kefeng Engineering derivated from Nanjiang Trading on 6 March 2017, registered captial amounted as 0.5 million Yuan.
94
东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Explanation on share-holding ratio of minority different from ratio of voting right:
Other explanation:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liability assets assets liability liability
assets liability assets liability
In RMB
The Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Other explanation:
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
(5)Financial or other supporting offer to structuring body included in consolidate statement scope
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Explanation on changes in owner's equity in subsidiaries
(2) Impact on minority interest and owner's equity attributable to parent company from transaction
In RMB
Other explanation
95
东沣科技集团股份有限公司 2017 年半年度财务报告
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding ratio Accounting
treatment on
Main operation investment for
Name Registered place Business nature
place Directly Indirectly joint venture and
cooperative
enterprise
Runhua RW
(Tianjin) International
Tianjin City Tianjin City 30.00% Equity method
International trading
trading Co., Ltd.
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)
voting rights hold:
(2) Main financial information of the important joint venture
In RMB
Ending balance/The Period Opening balance/Last Period
Other explanation
(3) Main financial information of the important affiliated business
In RMB
Ending balance/ The Period Opening balance/ Last Period
Other explanation
(4) Financial summary for non-important Joint venture and affiliate enterprise
In RMB
Ending balance/ The Period Opening balance/ Last Period
Joint venture: -- --
Total on below item by shareholding ratio -- --
Affiliated enterprise: -- --
Total on below item by shareholding ratio -- --
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东沣科技集团股份有限公司 2017 年半年度财务报告
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates
(6) Excess loss occurred in joint venture or affiliates
In RMB
Losses un-determined in the
Cumulated previous losses Cumulated losses
Name Period(net profit share in the
determined un-determined at period-end
Period)
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
Shareholding ratio/quota enjoy
Joint operation Main operation site Register place Business
Directly Indirectly
Explanation on shareholding ratio or quota enjoy in joint operation different from voting rights:
If the joint operation was the independent body, basis of classification of joint operation:
Other explanation
5. Structured body excluding in consolidate financial statement
Relevant explanation:
6. Other
X. Risk related with financial instrument
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
II.Non-sustaining -- -- -- --
97
东沣科技集团股份有限公司 2017 年半年度财务报告
measured by fair value
2. Basis for determining the market price of the sustained and non-sustained first-level fair value
measurement projects
3. The qualitative and quantitative information of the valuation techniques and important parameters
adopted for the sustained and non-sustained second-level fair value measurement projects
4. The qualitative and quantitative information of the valuation techniques and important parameters
adopted for the sustained and non-sustained third-level fair value measurement projects
5. The adjustment information about book value between the beginning and the end of the period and the
unobservable parameter sensitivity analysis of the sustained third-level fair value measurement projects
6. The sustained third-level fair value measurement projects that conversion has occurred among various
levels in the current period, the reasons for change and the policy determining the conversion point
7. Valuation techniques change occurred during the current period and the reasons for change
8. The fair value situations of the financial assets and financial liabilities not measured by the fair value
9. Other
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Explanation on parent company of the enterprise
The Company has no parent company; controller refers to the first largest shareholder Mr. Wang Dong, who holds 29.49% equity of
the Company.
Ultimate controller of the Company: Mr. Wang Dong
Other explanation:
2. Subsidiary of the Enterprise
Found more in Note IX.
3. Cooperative enterprise and joint venture
Found more in Note IX.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious
98
东沣科技集团股份有限公司 2017 年半年度财务报告
period:
Name Relationship
Runhua RW (Tianjin) International Trade Co., Ltd. Joint venture
Other explanation
On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the shareholder Lan
Chunhong of original subsidiary Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original
Concerted Action Person Agreement, both parties no longer maintain the concerted actions to the company’s daily production and
operation and the decision-making of other major matters, and each party makes opinions independently and exercises the right to
vote in accordance with the laws and regulations and normative documents and the provisions of the articles of association and their
own wishes, both parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action
person relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control
power to Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the
date of losing the control power to it, and check and calculate by equity method.
4. Other related party
Other related party Relationship with the Enterprise
Eagles Men Aeronautic Science and Technology Group Co., Ltd. Related legal person of the Company
Shanxi Eagles Men Aeronautic Science and Technology Co., Ltd. Related legal person of the Company
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether over the
Related party Content The Period Amount approved Last Period
transaction limit
Eagles Men
Aeronautic Science Merchandise
-2,970,000.00 No
and Technology returns
Group Co., Ltd.
Shanxi Eagles Men
Aeronautic Science Merchandise
-21,159,500.00 No
and Technology returns
Co., Ltd.
Goods sold/labor service providing
In RMB
Related party Content The Period Last Period
99
东沣科技集团股份有限公司 2017 年半年度财务报告
Explanation on goods purchasing, labor service providing and receiving
On 15 November 2016,Dongfeng Sci-Tech Group CO., LTD. (hereinafter referred to as “the Company”) holding a 14th session of 6th
BOD, for deliberated and approved the Proposals of Routine Related Transactions. The Company entered into a Sales Contract for
Ground Protection System and Sales Contract for Stratospheric Satellite Ground Protection System with EMAST Group (hereinafter
referred to as “EMAST”) and its wholly-owned subsidiary - Shanxi Eagles Men Aeronautic Science and Technology Co., Ltd.
(hereinafter referred to as Shanxi Eagles) respectively. Purchasing equipment as airship ground protection produced by EMAST and
Shanxi Eagles, total contract amounting as 24.1295 million Yuan. Till end of 31 December 2016, actually money paid for products
are 21.7166 million Yuan.
On 3 December 2016, according to the Escrow Letter agreed for payment and delivery on time in the contract, the equipments
purchased are full custody by Shanxi Eagles on behalf of the Company.
After investigation from the technician of the Company, we found that the technical proposal and drawings, attaché with original
contract, has an unforeseeable difference with the critical success factors that in original plans, the purpose of contract has not been
realized. The three parties terminate the original sales contract by negotiation, after technology validation by EMAST and Shanxi
Eagles, for purpose of avoiding potential risks and the losses to both parties. Returns processing of goods and money are temporary
implemented.
On 15 March 2017, the Company entered into a Release Agreement on Sales Contract for Ground Protection System and Release
Agreement on Sales Contract for Stratospheric Satellite Ground Protection System with EMAST Group and Shanxi Eagles
respectively. The former contract will release while the agreement take into effect. And the two parties are implemented returns
processing of goods and money in duty.
On 16 March 2017, 17 March and 20 March, the Company received the payment for goods as 3.5 million Yuan, 15.5436 million
Yuan and 2.673 million Yuan in three times, 21.7166 million Yuan in total.
(2) Related trusteeship management/contract & entrust management/ outsourcing
Trusteeship management/contract:
In RMB
Income
Client/contract-ou Commissioned
Assets type Start date Expire date Pricing basis recognized in the
t party party/contractor
period
Explanation
Entrust management/ outsourcing:
In RMB
Expenses
Client/contract-ou Commissioned
Assets type Start date Expire date Pricing basis recognized in the
t party party/contractor
period
Explanation
(3) Related leasing
As a lessor for the Company:
In RMB
Lessee Assets type Lease income recognized in the Lease income recognized in last
100
东沣科技集团股份有限公司 2017 年半年度财务报告
Period Period
As a lessee for the Company:
In RMB
Rental fee recognized in the Rental fee recognized in last
Lessor Assets type
Period Period
Explanation on related lease
(4) Related guarantee
The Company acts as a secured party
In RMB
Whether the guarantee
Secured party Guarantee amount Start date Expiry date
implemented or not
As a secured party by the Company
In RMB
Whether the guarantee
Guarantor Guarantee amount Start date Expiry date
implemented or not
Explanation on related guarantee
(5) Borrowed funds from related party
In RMB
Related party Borrowing amount Start date Expiry date Note
Inter-bank borrowing
Lending transaction
(6) Related party’s assets transfer and debt reorganization
In RMB
Related party Content The Period Last Period
(7) Remuneration of key management personnel
In RMB
Item The Period Last Period
Remuneration of key management
783,050.00 898,000.00
personnel
101
东沣科技集团股份有限公司 2017 年半年度财务报告
(8) Other related transaction
6. Account receivable/payable from/to related party
(1) Account receivables
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Advance payment
Eagles Men
Aeronautic Science
2,241,461.40
and Technology
Group Co., Ltd.
Shanxi Eagles Men
Aeronautic Science
15,969,092.73
and Technology Co.,
Ltd.
(2) Account payable
In RMB
Item Related party Ending book balance Opening book balance
7. Commitment of related party
8. Other
XIII. Share-based payment
1. Share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
102
东沣科技集团股份有限公司 2017 年半年度财务报告
4. Modification and termination of the share-based payment
5. Other
XIV. Commitment and contingency
1. Important commitment
Important commitment on balance sheet date
2. Contingency
(1) Important contingency on balance sheet date
As of 30 June 2017, the balance of guarantee of the mortgage for commercial housing owner amounted as 166,451,200 Yuan
(2) If the Company has no important contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclose.
3. Other
XV. Events after balance sheet date
1. Important non adjustment matters
In RMB
Impact on financial status and Reasons of fails to estimate the
Item Content
operation results impact
2. Profit distribution
In RMB
3. Sales return
4. Other events after balance sheet date
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
103
东沣科技集团股份有限公司 2017 年半年度财务报告
Items impact during vary
Content Treatment procedure Accumulated impact
comparative period
(2) Prospective application
Content Approval procedure Reasons
2. Debt restructuring
3. Assets replacement
(1) Non-monetary assets
(2) Other assets
4. Pension plan
5. Discontinuing operation
In RMB
Profit of
discontinuing
operation
Item Revenue Expenses Total profit Income tax Net profit
attributable to
owners of parent
company
Other explanation
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
In RMB
Item Offset of segment Total
104
东沣科技集团股份有限公司 2017 年半年度财务报告
(3) The Company has no segment, or unable to disclose total assets and liability of the segment, explain
reasons
(4) Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
(2) Provision for bad debts accrued, regain or switch back in the Period
In the Period, 0 Yuan accrued for provision of bad debts; 0 Yuan provision for bad debts regains or switch back in the Period.
Including major amount of bad debt provision regain or switch back in the Period:
In RMB
Unit Amount regain or switch back Way of regain
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
105
东沣科技集团股份有限公司 2017 年半年度财务报告
In RMB
Arising from related
Unit Nature Amount written off Reasons Procedures
transaction (Y/N)
Explanation on written off:
(4) Top five account receivables collected by arrears party at ending balance
(5) Account receivable de-recognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
2. Other account receivables
(1) Other account receivables by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
Other receivables
accrued for provision 29,791,9 67,905.7 29,724,07 23,650, 23,582,767.
99.77% 0.23% 99.51% 67,905.78 0.56%
of bad debt by 84.72 8 8.94 673.11 33
portfolio
Other receivables
with minor single
70,000.0 70,000.0 70,000.
amount but accrued 0.23% 100.00% 0.49% 70,000.00 100.00%
0 0 00
for provision of bad
debt on a single basis
29,861,9 137,905. 29,724,07 23,720, 137,905.7 23,582,767.
Total 100.00% 0.46% 100.00% 1.05%
84.72 78 8.94 673.11 8 33
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
□ Applicable √ Not-applicable
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
In RMB
Aging Ending balance
106
东沣科技集团股份有限公司 2017 年半年度财务报告
Other account receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 1,574,385.00 32,046.24 2.04%
1-2 years 130,597.72 26,119.54 20.00%
2-3 years 19,480.00 9,740.00 50.00%
Total 1,724,462.72 67,905.78 3.94%
Portfolio recognized:
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
√ Applicable □ Not-applicable
Portfolio Ending balance
Other accounts receivable Provision for bad debts Provision ratio (%)
Ecological agriculture 16,467,846.58 --- ---
Huijing Property 6,091,523.19 --- ---
Tail payment of the land reserves from 3,678,200.00 --- ---
Land Reserve Center of Chengde
County
Nanjiang Trade 1,129,495.73 --- ---
Nanjiang Technology 284,228.00 --- ---
Kefeng Engineering 150,000.00 --- ---
Kefeng Aerospace 60,000.00 --- ---
Nanjiang Asia 4,971.22 --- ---
Oil prepaid to Petroleum Company 110,836.28 --- ---
Cement special fund 90,421.00 --- ---
Total 28,067,522.00 --- ---
(2) Bad debt provision accrual collected or switch back
There is 0 Yuan provision for bad debts accrued in the Period; and 0 Yuan regains or switch back in the Period.
Including the followed significant amount:
In RMB
Unit Regains or switch back Way of regain
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written-off
Major other account receivables written-off:
107
东沣科技集团股份有限公司 2017 年半年度财务报告
In RMB
Arising from related
Name Nature Amount written-off Reasons Procedures
transaction (Y/N)
Explanation on other account receivable:
(4) Other account receivables category by nature of money
In RMB
Nature of money Ending book balance Beginning book balance
Intercourse current 24,188,064.72 18,676,237.99
Land acquisition account 3,678,200.00 3,678,200.00
Other 1,995,720.00 1,366,235.12
Total 29,861,984.72 23,720,673.11
(5) Top five other account receivables collected by arrears party at ending balance
In RMB
Proportion in total Ending balance of
Unit Nature Ending balance Aging
other receivables bad debt provision
Nanjiang Ecological Within one year; 1-2
Intercourse current 16,467,846.58 55.15%
Agriculture years
Land Reserve Center Final payment for
3,678,200.00 2-3 years 12.32%
of Chengde County land acquisition
Huijing Property
Intercourse current 6,091,523.19 Within one year 20.40%
Company
Nanjiang Technology Within one year; 2-3
Intercourse current 284,228.00 0.95%
Company years
Kefeng Engineering Intercourse current 150,000.00 Within one year 0.50%
Total -- 26,671,797.77 -- 89.32%
(6) Account receivables related to government subsidies
In RMB
Time and amount
Unit Item Ending balance Ending age
collected and basis
108
东沣科技集团股份有限公司 2017 年半年度财务报告
(7) Other receivable for termination of confirmation due to the transfer of financial assets
(8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Other explanation:
3. Long-term equity investment
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment for
178,114,466.37 178,114,466.37 187,284,836.37 9,170,370.00 178,114,466.37
subsidiary
Investment in
joint ventures and
2,790,271.96 2,790,271.96 0.00
associated
enterprise
Total 180,904,738.33 2,790,271.96 178,114,466.37 187,284,836.37 9,170,370.00 178,114,466.37
(1) Investment for subsidiary
In RMB
Depreciation Ending balance of
Increased in Decreased in
Invested company Opening balance Ending balance reserves accrual depreciation
Period Period
in the Period reserves
Nanjiang Trading 53,114,299.73 47,802,869.76 5,311,429.97
Dongfeng
90,000,000.00 90,000,000.00
Investment
Nanjiang Asia 5,000,166.64 5,000,166.64
Hangzhou
30,000,000.00 30,000,000.00
Dongfeng
Kefeng Trade 45,147,154.77 45,147,154.77
Kefeng
2,655,714.99 2,655,714.99
Engineering
Ruihua RW 9,170,370.00 9,170,370.00 0.00
Total 187,284,836.37 47,802,869.76 56,973,239.76 178,114,466.37
109
东沣科技集团股份有限公司 2017 年半年度财务报告
(2) Investment for joint venture and associated enterprise
In RMB
Changes in Period
Investme Cash Ending
Other
nt dividend balance
Unit of Additiona comprehe Depreciat
Opening Negative gains/loss Other or profit Ending of
investmen l nsive ion
balance investmen es equity announce Other balance depreciati
t investmen income reserves
t recognize changes d to on
t adjustmen accrual
d by distribute reserves
t
equity d
I. Joint venture
II. Associated enterprise
Ruihua 2,790,271 2,790,271 2,790,271
RW .96 .96 .96
2,790,271 2,790,271 2,790,271
Subtotal
.96 .96 .96
2,790,271 2,790,271 2,790,271
Total
.96 .96 .96
(3) Other explanation
In March 2017, the company separated the wholly owned subsidiary Chengde Nanjiang Trading Co., Ltd. (hereinafter referred to as
“Nanjiang Trading”), Nanjiang Trading continued to exist, with the registered capital of RMB 1 million, and derived to establish
Chengde Kefeng Project Management Co., Ltd., with the registered capital of RMB 500,000, and Chengde Kefeng Trading Co. Ltd.,
with the registered capital of RMB 8.5 million. Approved by Chengde Market Supervision Authority, Nanjiang Trading has
completed the relevant industrial and commercial registration for separation.
On April 26, 2017, the company signed the Termination Agreement of Concerted Action Person Agreement with the shareholder Lan
Chunhong of original subsidiary Runhua Nongshui (Tianjin) International Trade Co., Ltd., after the termination of the original
Concerted Action Person Agreement, both parties no longer maintain the concerted actions to the company’s daily production and
operation and the decision-making of other major matters, and each party makes opinions independently and exercises the right to
vote in accordance with the laws and regulations and normative documents and the provisions of the articles of association and their
own wishes, both parties are no longer subject to the original agreement. In accordance with the relevant provisions of the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements, after Mr. Lan Chunhong relieved the concerted action
person relations with our company, our company would hold 30% equity stake of Runhua Nongshui but no longer have the control
power to Runhua Nongshui, the company would no longer include Runhua Nongshui in the consolidated financial statement from the
date of losing the control power to it, and check and calculate by equity method.
4. Operation income and operation cost
In RMB
Item The Period Last Period
110
东沣科技集团股份有限公司 2017 年半年度财务报告
Income Cost Income Cost
Main business 99,465,192.85 83,841,835.73 179,229,459.06 150,397,967.36
Other business 62,967.09 37,714.74 911,933.83 890,358.48
Total 99,528,159.94 83,879,550.47 180,141,392.89 151,288,325.84
Other explanation:
5. Investment gains
In RMB
Item The Period Last Period
6. Other
XVIII. Supplementary information
1. Details of current non-recurring profits and losses
√ Applicable □ Not-applicable
In RMB
Item Amount Remark
Other non-operating income and expense
23,008.23
other than the abovementioned ones
Total 23,008.23 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not-applicable
2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Diluted EPS
Basic EPS (Yuan/share)
(Yuan/share)
Net profits belong to common stock
-0.88% -0.004 -0.004
stockholders of the Company
Net profits belong to common stock
-0.88% -0.004 -0.004
stockholders of the Company after
111
东沣科技集团股份有限公司 2017 年半年度财务报告
deducting nonrecurring gains and
losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not-applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not-applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute
4. Othe
112
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