深中华B:2017年半年度财务报告(英文版)

来源:深交所 2017-08-30 00:00:00
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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Financial Report

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 Shenzhen China Bicycle Company (Holdings) Limited

2017-06-30

In RMB

Item Closing balance Opening balance

Current assets:

Monetary funds 15,177,305.48 24,015,287.71

Settlement provisions

Capital lent

Financial assets measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial liability

Notes receivable 5,139,578.00 2,220,000.00

Accounts receivable 10,621,799.74 12,371,386.82

Accounts paid in advance 1,496,894.88 1,867,424.89

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Interest receivable

Dividend receivable

Other receivables 593,588.25 658,754.09

Purchase restituted finance asset

1

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Inventories 6,085,173.94 3,118,440.26

Divided into assets held for sale

Non-current asset due within one

year

Other current assets 2,555,611.75 2,050,830.55

Total current assets 41,669,952.04 46,302,124.32

Non-current assets:

Loans and payments on behalf

Finance asset available for sales

Held-to-maturity investment

Long-term account receivable

Long-term equity investment

Investment property

Fixed assets 3,615,758.14 3,728,955.11

Construction in progress

Engineering material

Disposal of fixed asset

Productive biological asset

Oil and gas asset

Intangible assets 2,635,500.00 3,012,000.00

Expense on Research and

Development

Goodwill

Long-term expenses to be

apportioned

Deferred income tax asset 633,566.88 645,196.29

Other non-current asset 400,000.00 400,000.00

Total non-current asset 7,284,825.02 7,786,151.40

Total assets 48,954,777.06 54,088,275.72

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

current gains/losses

2

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Derivative financial liability

Notes payable

Accounts payable 11,751,606.32 9,751,977.78

Accounts received in advance 2,031,423.43 4,321,059.83

Selling financial asset of

repurchase

Commission charge and

commission payable

Wage payable 641,747.85 770,985.97

Taxes payable 419,444.08 1,565,153.77

Interest payable

Dividend payable

Other accounts payable 18,956,010.14 20,397,287.32

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 33,800,231.82 36,806,464.67

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 33,800,231.82 36,806,464.67

3

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Owner’s equity:

Share capital 551,347,947.00 551,347,947.00

Other equity instrument

Including: preferred stock

Perpetual capital

securities

Capital public reserve 627,834,297.85 627,834,297.85

Less: Inventory shares

Other comprehensive income

Reasonable reserve

Surplus public reserve 32,673,227.01 32,673,227.01

Provision of general risk

Retained profit -1,199,178,166.72 -1,197,486,788.28

Total owner’s equity attributable to

12,677,305.14 14,368,683.58

parent company

Minority interests 2,477,240.10 2,913,127.47

Total owner’s equity 15,154,545.24 17,281,811.05

Total liabilities and owner’s equity 48,954,777.06 54,088,275.72

Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

2. Balance Sheet of Parent Company

In RMB

Item Closing balance Opening balance

Current assets:

Monetary funds 1,391,537.61 1,143,418.29

Financial liability measured by fair

value and with variation reckoned into

current gains/losses

Derivative financial liability

Notes receivable

Accounts receivable

Account paid in advance 16,000.00

Interest receivable

Dividends receivable

4

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Other receivables 7,035,631.74 9,364,086.29

Inventories

Divided into assets held for sale

Non-current assets maturing within

one year

Other current assets 2,391,678.18 2,050,830.55

Total current assets 10,818,847.53 12,574,335.13

Non-current assets:

Available-for-sale financial assets

Held-to-maturity investments

Long-term receivables

Long-term equity investments 10,379.73 10,379.73

Investment property

Fixed assets 3,410,303.75 3,528,684.59

Construction in progress

Project materials

Disposal of fixed assets

Productive biological assets

Oil and natural gas assets

Intangible assets 2,635,500.00 3,012,000.00

Research and development costs

Goodwill

Long-term deferred expenses

Deferred income tax assets

Other non-current assets 400,000.00 400,000.00

Total non-current assets 6,456,183.48 6,951,064.32

Total assets 17,275,031.01 19,525,399.45

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 7,440.00

5

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Accounts received in advance 1,086,507.70

Wage payable 112,724.95 112,700.06

Taxes payable 78,934.95 81,512.92

Interest payable

Dividend payable

Other accounts payable 10,168,473.15 10,662,912.89

Divided into liability held for sale

Non-current liabilities due within 1

year

Other current liabilities

Total current liabilities 10,367,573.05 11,943,633.57

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 10,367,573.05 11,943,633.57

Owners’ equity:

Share capita 551,347,947.00 551,347,947.00

Other equity instrument

Including: preferred stock

Perpetual capital

securities

Capital public reserve 627,834,297.85 627,834,297.85

Less: Inventory shares

Other comprehensive income

6

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Reasonable reserve

Surplus reserve 32,673,227.01 32,673,227.01

Retained profit -1,204,948,013.90 -1,204,273,705.98

Total owner’s equity 6,907,457.96 7,581,765.88

Total liabilities and owner’s equity 17,275,031.01 19,525,399.45

3. Consolidated Profit Statement

In RMB

Item Current Period Last Period

I. Total operating income 48,929,676.27 65,774,013.33

Including: Operating income 48,929,676.27 65,774,013.33

Interest income

Insurance gained

Commission charge and commission

income

II. Total operating cost 51,337,023.25 65,399,767.36

Including: Operating cost 45,686,272.83 60,321,233.37

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 91,353.05 71,125.39

Sales expenses 2,468,701.87 3,228,182.36

Administration expenses 3,339,531.50 2,348,640.07

Financial expenses -201,564.91 -544,525.55

Losses of devaluation of asset -47,271.09 -24,888.28

Add: Changing income of fair

value(Loss is listed with “-”)

Investment income (Loss is listed

7

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

with “-”)

Including: Investment income on

affiliated company and joint venture

Exchange income (Loss is listed

with “-”)

Other income

III. Operating profit (Loss is listed with

-2,407,346.98 374,245.97

“-”)

Add: Non-operating income 291,710.58 342,089.82

Including: Disposal gains of

non-current asset

Less: Non-operating expense 1,509.00

Including: Disposal loss of

non-current asset

IV. Total Profit (Loss is listed with “-”) -2,115,636.40 714,826.79

Less: Income tax expense 11,629.41 195,895.21

V. Net profit (Net loss is listed with “-”) -2,127,265.81 518,931.58

Net profit attributable to owner’s of

-1,691,378.44 448,356.29

parent company

Minority shareholders’ gains and

-435,887.37 70,575.29

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

8

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

subsequently to profit or loss

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

Net after-tax of other comprehensive

income attributable to minority

shareholders

VII. Total comprehensive income -2,127,265.81 518,931.58

Total comprehensive income

-1,691,378.44 448,356.29

attributable to owners of parent Company

Total comprehensive income

-435,887.37 70,575.29

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share -0.0031 0.0008

(ii) Diluted earnings per share -0.0031 0.0008

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: Li Hai Person in charge of Accounting Works:Sun Longlong

Person in charge of Accounting Institution: Zhong Xiaojin

4. Profit Statement of Parent Company

In RMB

Item Current Period Last Period

9

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

I. Operating income 3,228,905.96 3,476,770.26

Less: Operating cost 1,994,075.80 2,092,043.56

Operating tax and extras 27,518.91

Sales expenses

Administration expenses 2,165,755.45 1,314,903.41

Financial expenses 2,461.63 172.23

Losses of devaluation of asset

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

-933,386.92 42,132.15

with “-”)

Add: Non-operating income 259,079.00 337,615.00

Including: Disposal gains of

non-current asset

Less: Non-operating expense 1,509.00

Including: Disposal loss of

non-current asset

III. Total Profit (Loss is listed with

-674,307.92 378,238.15

“-”)

Less: Income tax expense 94,557.55

IV. Net profit (Net loss is listed with

-674,307.92 283,680.60

“-”)

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

10

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

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 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 -674,307.92 283,680.60

VII. Earnings per share:

(i) Basic earnings per share -0.0012 0.0005

(ii) Diluted earnings per share -0.0012 0.0005

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 23,451,451.79 26,522,475.87

services

Net increase of customer deposit

and interbank deposit

11

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Net increase of loan from central

bank

Net increase of capital borrowed

from other financial institution

Cash received from original

insurance contract fee

Net cash received from reinsurance

business

Net increase of insured savings and

investment

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

Other cash received concerning

2,324,298.02 3,684,052.35

operating activities

Subtotal of cash inflow arising from

25,775,749.81 30,206,528.22

operating activities

Cash paid for purchasing

commodities and receiving labor 23,835,363.39 25,154,241.71

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 3,517,233.68 3,469,307.38

Taxes paid 1,649,135.49 1,339,712.12

12

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Other cash paid concerning

5,580,059.48 4,991,881.79

operating activities

Subtotal of cash outflow arising from

34,581,792.04 34,955,143.00

operating activities

Net cash flows arising from operating

-8,806,042.23 -4,748,614.78

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,

31,940.00 2,959,824.00

intangible and other long-term assets

Cash paid for investment

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

31,940.00 2,959,824.00

activities

Net cash flows arising from investing

-31,940.00 -2,959,824.00

activities

III. Cash flows arising from financing

activities

Cash received from absorbing

investment

Including: Cash received from

absorbing minority shareholders’

13

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

investment by subsidiaries

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

Including: Dividend and profit of

minority shareholder paid by

subsidiaries

Other cash paid concerning

financing activities

Subtotal of cash outflow from financing

activities

Net cash flows arising from financing

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

-8,837,982.23 -7,708,438.78

equivalents

Add: Balance of cash and cash

24,015,287.71 26,752,065.66

equivalents at the period -begin

VI. Balance of cash and cash

15,177,305.48 19,043,626.88

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

services

Write-back of tax received

14

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Other cash received concerning

4,981,778.23 7,109,161.66

operating activities

Subtotal of cash inflow arising from

4,981,778.23 7,109,161.66

operating activities

Cash paid for purchasing

commodities and receiving labor 32,356.80

service

Cash paid to/for staff and workers 1,439,294.18 1,005,191.83

Taxes paid 186,158.39 242,875.18

Other cash paid concerning

3,108,206.34 2,949,997.90

operating activities

Subtotal of cash outflow arising from

4,733,658.91 4,230,421.71

operating activities

Net cash flows arising from operating

248,119.32 2,878,739.95

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,

2,959,824.00

intangible and other long-term assets

Cash paid for investment

Net cash received from

subsidiaries and other units

Other cash paid concerning

investing activities

Subtotal of cash outflow from investing 2,959,824.00

15

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

activities

Net cash flows arising from investing

-2,959,824.00

activities

III. Cash flows arising from financing

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

financing activities

Subtotal of cash outflow from financing

activities

Net cash flows arising from financing

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

248,119.32 -81,084.05

equivalents

Add: Balance of cash and cash

1,143,418.29 1,199,934.09

equivalents at the period -begin

VI. Balance of cash and cash

1,391,537.61 1,118,850.04

equivalents at the period -end

7. Statement of Changes in Owners’ Equity (Consolidated)

This Period

In RMB

16

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

This Period

Owners’ equity attributable to parent company

Other

equity instrument

Item Less: Other Provisio Minorit Total

Perpet Reason

Share Capital Invento compre Surplus n of Retaine y owners’

ual able

capital Prefer capita reserve ry hensive reserve general d profit interests equity

red Other reserve

l shares income risk

stock

securi

ties

551,34 -1,197,4

I. Balance at the 627,834 32,673, 2,913,1 17,281,

7,947. 86,788.

end of the last year ,297.85 227.01 27.47 811.05

00 28

Add:

Changes of

accounting policy

Error

correction of the

last period

Enterprise

combine under

the same control

Other

II. Balance at the 551,34 627,834 32,673,

-1,197,4

2,913,1 17,281,

beginning of this 7,947. 86,788.

,297.85 227.01 27.47 811.05

year 00 28

III. Increase/

Decrease in this -1,691,3 -435,88 -2,127,2

year (Decrease is 78.44 7.37 65.81

listed with “-”)

(i) Total -1,691,3 -435,88 -2,127,2

comprehensive

78.44 7.37 65.81

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

17

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

payment

4. Other

(III) Profit

distribution

1. Withdrawal of

surplus reserves

2. Withdrawal of

general risk

provisions

3. Distribution for

owners (or

shareholders)

4. Other

(IV) Carrying

forward internal

owners’ equity

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 551,34 -1,199,1

627,834 32,673, 2,477,2 15,154,

end of the report 7,947. 78,166.

,297.85 227.01 40.10 545.24

period 00 72

Last Period

In RMB

Last Period

Owners’ equity attributable to parent company

Minorit

Item Other Less: Other Provisio Total

Reason y

Share equity instrument Capital Invento compre Surplus n of Retaine interest owners’

able equity

capital Prefer Perpet reserve ry hensive reserve general d profit s

Other reserve

red ual shares income risk

18

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

stock capita

l

securi

ties

551,34 -1,200,0

I. Balance at the 627,834 32,673, 1,625,1 13,390,

7,947. 90,425.

end of the last year ,297.85 227.01 85.21 231.32

00 75

Add:

Changes of

accounting policy

Error

correction of the

last period

Enterprise

combine under

the same control

Other

II. Balance at the 551,34 -1,200,0

627,834 32,673, 1,625,1 13,390,

beginning of this 7,947. 90,425.

,297.85 227.01 85.21 231.32

year 00 75

III. Increase/

Decrease in this 2,603,6 1,287,9 3,891,5

year (Decrease is 37.47 42.26 79.73

listed with “-”)

(i) Total 2,603,6 1,287,9 3,891,5

comprehensive

37.47 42.26 79.73

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

general risk

provisions

19

深圳中华自行车(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 551,34 -1,197,4

627,834 32,673, 2,913,1 17,281,

end of the report 7,947. 86,788.

,297.85 227.01 27.47 811.05

period 00 28

8. Statement of Changes in Owners’ Equity (Parent Company)

This Period

In RMB

This Period

Other

equity instrument

Other Total

Item Share Perpetu Less: Retaine

Capital comprehe Reasonab Surplus

al Inventory owners’

capital Preferre reserve nsive le reserve reserve d profit

capital Other shares equity

d stock income

securiti

es

-1,204,2

I. Balance at the 551,347, 627,834,2 32,673,22 7,581,765

73,705.

end of the last year 947.00 97.85 7.01 .88

98

20

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Add: Changes

of accounting

policy

Error

correction of the

last period

Other

II. Balance at the 551,347, -1,204,2

627,834,2 32,673,22 7,581,765

beginning of this 73,705.

947.00 97.85 7.01 .88

year 98

III. Increase/

Decrease in this -674,30 -674,307.

year (Decrease is 7.92 92

listed with “-”)

(i) Total -674,30 -674,307.

comprehensive

7.92 92

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

1. Capital reserves

conversed to

capital (share

capital)

2. Surplus reserves

21

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

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 551,347, -1,204,9

627,834,2 32,673,22 6,907,457

end of the report 48,013.

947.00 97.85 7.01 .96

period 90

Last period

In RMB

Last period

Other

equity instrument

Other Total

Item Perpetu Less:

Share Capital comprehe Reasonab Surplus Retaine

al Inventory owners’

capital Preferre reserve nsive le reserve reserve d profit

capital Other shares equity

d stock income

securiti

es

-1,203,8

I. Balance at the 551,347, 627,834,2 32,673,22 7,983,327

72,144.

end of the last year 947.00 97.85 7.01 .03

83

Add: Changes

of accounting

policy

Error

correction of the

last period

Other

II. Balance at the 551,347, -1,203,8

627,834,2 32,673,22 7,983,327

beginning of this 72,144.

947.00 97.85 7.01 .03

year 83

III. Increase/

Decrease in this -401,56 -401,561.

year (Decrease is 1.15 15

listed with “-”)

22

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(i) Total -401,56 -401,561.

comprehensive

1.15 15

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

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

23

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

IV. Balance at the 551,347, -1,204,2

627,834,2 32,673,22 7,581,765

end of the report 73,705.

947.00 97.85 7.01 .88

period 98

III. Company Profile

1. History and Reform

According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,

Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was

reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval

Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of

China, the Company got listed on Shenzhen Stock Exchange. The Company reserves the business license for the

enterprise legal person (QGYSZFZ No.101165) [Uniform social credit code: 914403006188304524] and the

registered capital of RMB551, 347,947.00.

2. Industry nature

The company's industry: machinery manufacturing industry

3. Business scope

The production and assembly of various bicycles and spare parts, components, parts, mechanical product, sport

machinery, fine chemicals, carbon fiber composites material, household electrical appliance and affiliated

components (products management by license excluded).

4. Major products and services provided

The Company is specialized in making the middle-top rank bicycles, the main brands are EMMELLE and various

electrical bicycles.

5. Business change

During the reporting period, the company's main business has not changed.

6. Disclosure date approved

The financial statement approved for report has been deliberated by the second meeting of 10th BOD held 28

August 2017

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

IV. Compilation Basis of Financial Statement

1. Compilation Basis

The financial statement is prepared based on continuing operation assumptions, and according to actual

occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.

2. Going concern

On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guocheng Energy

Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the

Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 th, Oct., 2012,

Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guocheng Energy

according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,

Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 th, Oct., 2012 according to

(2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons

and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day,

Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1

written decision, and approved the Company to manage property and business affairs by itself under the

supervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court

(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the

Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen

Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of

CBC closed down.

The Company has solved the debt problem by reforming, realized the net assets with positive value, the main

business of bicycle is able to be maintained and realizes the stable development. The Company has set up the

conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of

sustainable operation and sustained profitability by reorganization. The conditions of introducing the

recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets

in the same year for implementing the major reorganization should be no less than 200 million Yuan. The

Company doesn’t have the recombination party at the moment.

V. Main accounting policy and Accounting Estimate

Tips for specific accounting policy and estimate:

Nil

1. Declaration on compliance with accounting standards

The financial statement prepared by the Company, based on follow compilation basis, is comply with the

requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application

25

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

guide, commentate as well as other regulations (called by a joint name as Accounting Standards for Business

Enterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cash

flow situations.

Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the

Disclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014

Revised) (hereinafter referred to as NO. 15 (2014 Revised) document)

2. Accounting period

Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31

December.

3. Business cycles

The business period for the Company, that is falls to the range starting from 1 January to 31 December.

4. Recording 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) Accounting treatment for business combinations under the same control and those not under the same control

① The business combination under the same control

For a business merger that is under the same control and is achieved by the Company through one single

transaction or multiple transactions, assets and liabilities obtained from that business combination shall be

measured at their book value at the combination date as recorded by the party being absorbed in the consolidated

financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between

the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value

of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for

offset.

The asset or liability items of consolidated party are measured at their carrying value in the consolidated balance

sheet as of the consolidation date. Consolidated Profit and Loss include all items of income, expenditures and

profit from beginning till end of the period of the consolidated party(ies). Net profit made by the consolidated

company should be listed exclusively in the consolidated Profit and Loss. Cash flows from beginning till end of

the period of all consolidated parties are taken into the consolidated Cash Flow.

②The business combinations not involving enterprises under common control

The Company will validate the difference that the combined cost is more than the fair value of the net identifiable

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair

value of net identifiable assets gained from the acquiree during business combination, the fair value and combined

cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where

the combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from the

acquiree during business combination, the difference shall be charged to current profits and losses.

As for business combination not under common control and realized through multiple transactions and by steps,

the Company shall make accounting treatment as follows:

A. Adjust the initial investment cost of long-term equity investments. As for stock equities held before the

acquisition date accounted according to the equity method, re-measurement is carried out according to the fair

value of the equity on the acquisition date. The balance between the fair value and the book value is included

in the current investment income. If the acquiree’s stock equities held before the acquisition date involves

changes of other comprehensive incomes and other owner's equities under accounting with the equity method,

the balance between the fair value and the book value is included in the current investment income on the

acquisition date, excluding other comprehensive incomes incurred by changes due to re-measurement of net

liabilities or net assets of the defined benefit plan.

B. Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term

equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary

shared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if

the former is less than the latter, the balance is included in the current profits and losses.

(2)Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in

stages

①In determining whether to account for the multiple transactions as a single transaction

A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of

the following may indicate that the parent should account for the multiple arrangements as a single transaction:

A. Arrangements are entered into at the same time or in contemplation of each other;

B. Arrangements work together to achieve an overall commercial effect;

C. The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;

D. One arrangement considered on its own is not economically justified, but it is economically justified when

considered together with other arrangements.

②Accounting treatment for each of the multiple transactions forming part of a bundled transactions which

eventually results in loss of control the subsidiary during disposal of its subsidiary in stages

If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control

the subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

financial statements, the difference between the consideration received and the corresponding percentage of the

subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive

income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.

The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at

the date when control is lost. The difference between the total amount of consideration received from the

transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share

of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based

on the previous shareholding proportion, shall be recognized as investment income for the current period when

control is lost. The amount previously recognized in other comprehensive income in relation to the former

subsidiary’s equity investment should be transferred to investment income for the current period when control is

lost

③Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which

eventually results in loss of control the subsidiary during disposal of its subsidiary in stages

If the Company doesn't lose control of investee, the difference between the amount of the consideration received

and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital

premium) in the consolidated financial statements.

If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in

the consolidated financial statements at the date when control is lost. The difference between the total amount of

consideration received from the transaction that resulted in the loss of control and the fair value of the remaining

equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition

date or combination date based on the previous shareholding percentage, shall be recognized as investment

income for the current period when control is lost. The amount previously recognized in other comprehensive

income in relation to the former subsidiary’s equity investment should be transferred to investment income for the

current period when control is lost.

6. Compilation method of consolidated financial statement

Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for

Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent

company and its subsidiaries and other related information.

When consolidating the financial statements, the following items are eliminated: internal equity investment and

owners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal

transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent

company.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

7. Classification of joint venture arrangement and accounting treatment for joint control

(1) Affirmation and classification of joint venture arrangement

Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture

arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more

participants carry out joint control on implementation of the arrangement. Any participant cannot control the

arrangement independently. Any participant for joint control can stop other participants or participant

combinations to independently control the arrangement.

Joint control refers to the sharing of control over certain arrangement under related agreements, and related

activities of the arrangement must be determined only when obtaining the unanimous consent of the parties

sharing control.

Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an

arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the

arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of

the arrangement.

(2) Accounting treatment of joint venture arrangement

Joint venture participants should confirm the following items related to interest shares in joint venture and carry

out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:

1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities

borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after

selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on

shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on

shares.

Joint venture participants should carry out accounting settlement for investments of the joint venture according to

provisions of Accounting Standards for Enterprises No.2–Long-term Equity Investments.

8. Recognition of cash and cash equivalents

Cash equivalents refer to the short-term (generally due within three months since the date of purchase) highly

liquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant

risk of change in value.

9. Foreign currency transaction and financial statement conversion

(1) Conversion for foreign currency transaction

When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according

29

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

to the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must be

based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different

exchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loan

related to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits and

losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot

exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items

measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value

and the difference shall be charged to current profits and losses or other comprehensive income.

(2) Conversion of financial statements presented in foreign currencies

The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet

date; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spot

exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted

at the spot exchange rate on the transaction date. The translation difference of foreign financial statements

conducted as above is recognized as other comprehensive incomes.

10. Financial instruments

Financial instruments comprise of financial assets, financial liabilities and equity instruments.

(1) Classification of financial instruments

Financial assets and financial liabilities are classified as follows by the management based on the purpose of

holding or assuming these assets or liabilities: financial assets or financial liabilities at fair value through profit or

loss, including financial assets or financial liabilities held for trading and those directly designated as at fair value

through profit or loss; held-to-maturity investments; receivables; available-for-sale financial assets and other

financial liabilities, etc.

(2) Recognition and measurement of financial instruments

①Financial assets and liabilities at fair value through profit and loss

The fair value (after deduction of cash dividend to be distributed and bonds interest to be received) of the

assets on the acquisition shall be adopted as initial recognized value, and related transaction expenses shall

be accounted into current profits and losses.

The interests and cash dividend received shall be recognized as investment gain during the period, and the

difference of fair value between initial and spot dates shall be accounted into current profits and losses at the

end of period.

On the disposal of the assets, the difference between the obtained price and the book value of investment

shall be recognized as investment gain, and the accumulated fair value profits and losses shall be accordingly

adjusted.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

②Held to maturity investments

The fair value (after deduction of bond interests whose period has matured but not charged yet) plus the

related transactions fees represents the initial recognition value.

During the holding period, the interest income shall be calculated as and included into investment gain in

accordance with the amortized costs and the actual interest rate. The actual interest rate is determined at the

time of acquisition, and shall remain unchanged during the expected renewal period or any shorter period as

applicable.

Upon disposal, the difference between the cost of acquisition and the book value of the investment shall be

accounted into investment gain.

③Receivable accounts

The contract price charged to the buyers shall be recognized as initial value for those receivable accounts

which mainly comprise the receivable creditor’s right caused by the sale of goods and the providing of

labor services to external customers by the Company, and receivables in other companies excluding debt

instruments priced in active markets, includes but is not limited to receivable accounts 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 receivable shall be accounted

into current profits and losses on its recovery or disposal.

④Financial assets available for sale

The fair value (lower than cash dividend to be distributed and bonds’ interest to be received) and relevant

transaction expenses of the assets on the acquisition shall be adopted as initial recognized value.

The interests and cash dividend received shall be recognized as investment income during the holding

period, and the difference of fair value between initial and spot dates shall be accounted into capital reserve

(other capital reserve).

Upon disposal, the difference between fair value and initial value shall be recognized as investment profits and

losses, and the accumulated changes in fair value from the disposal shall be at the same time transferred from the

shareholders’ equity to investment profits and losses.

⑤Other financial liabilities

The sum of the fair value and relevant transaction expenses is recognized as the initial recognition amount. The

amortized cost is used for subsequent measurement.

⑥Disposal of held-to-maturity investment or reclassification as financial assets available for sale:

Where the Company sells its outstanding held-to-maturity investment within the current accounting year or

31

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

re-classifies it as the amount of available-for-sale financial asset, and the amount is considerably large as

compared with the amount before such investment is sold or re-classified, the surplus of such investment shall be

re-classified as an available-for-sale financial asset. However, the following circumstances shall be excluded:

A. The date of sale or re-classification is quite near to the maturity date or the repo date of the said investment

(e.g., within 3 months prior to maturity) that any change of the market interest rate will produce little impact

upon the fair value of the said investment.

B. Enterprise has received almost all the initial principal of the investment according to the provisions on

repayment of the contract.

C. The sale or re-classification is caused by any independent event that the enterprise cannot control, is predicted

not to occur again and is hard to be reasonably predicted.

(3) Recognition and measurement of transfer of financial assets

With respect to transfer of financial assets, if an enterprise transfers substantially all the risks and rewards of

ownership of a financial asset to the transferee, the enterprise shall derecognize the financial assets. If an

enterprise retains substantially all the risks and rewards of ownership of a financial asset, the enterprise shall not

derecognize the financial asset.

When making judgment on whether a transfer of financial assets satisfy the above conditions for derecognition of

financial assets, the focus shall be put on substance, instead of the form. The Company shall divide transfer of

financial assets into transfer in full or in part. For a transfer of a financial asset in its entirety that satisfies the

derecognizing criteria, the difference between the following two amounts shall be recognized in profit or loss for

the current period:

①the book value of the financial asset transferred;

②The sum of the consideration received from the transfer and any cumulative gain or loss that had been

recognized directly in owner’s equity (applicable to transfer of available-for-sale financial assets).

If a part of the transferred financial asset qualifies for derecognizing, the book value of the transferred financial

asset in its entirety shall be allocated between the part that continues to be recognized and the part that is

derecognized, based on the relative fair values of those parts. The difference between the following two amounts

shall be included in profit or loss for the current period:

①the book value allocated to the part derecognized;

②the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to it

that had been recognized directly in equity (applicable to transfer of available-for-sale financial assets).

If a transfer of financial assets do not satisfy the derecognition conditions, the company shall continue to

recognize the financial assets, and the consideration received shall be included as financial liabilities.

32

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(4) Conditions for derecognizing financial liabilities

If the current obligations of financial liabilities has been lifted in whole or in part, then the Company shall

derecognize the financial liabilities in whole or in part thereof; if the Company signs an agreement with

creditors in order to take on new ways to replace the existing financial liabilities, and the new liabilities and

the existing financial terms are substantially different, the Company shall terminate recognizing the existing

financial liabilities, and begin to recognize the new financial liabilities at the same time.

If the terms of the contract involving the existing financial liabilities have been made with substantive

changes in whole or in part, the Company shall terminate recognizing the existing financial liabilities in

whole or in part, and at the same time, adopt the modified version of financial liabilities as a new one.

On derecognizing the financial liabilities in whole or in part, the difference between the book value of these

financial liabilities and the payment (including the roll-out of non-cash assets or new financial liabilities to

be assumed) shall be accounted into current profits and losses.

If buying back part of the financial liabilities, on the date of repurchase and in accordance with the comparative

fair value of the part to be continuously recognized and to be derecognized, the Company shall allocate the entire

financial liabilities. The difference between the part assigned to the derecognized book value and the payment

(including the roll-out of non-cash assets or new financial liabilities to be assumed) shall be included into profits

and losses of the current period.

(5)Determination of fair value of financial assets and liabilities

For financial assets and financial liabilities of the Company measured at fair value for which an active market

exists, their fair values are determined based on the prices quoted on the actively traded market; for financial

assets and financial liabilities for which no active market exists, their fair values are determined using valuation

techniques (including by reference to the price adopted by willing parties in their recent transactions or by

reference to the prevailing fair value, discount of cash flow method and option pricing model of other financial

instruments which are substantially the same); for financial assets initially obtained or derived or financial

liabilities assumed, fair value is determined based on market transaction prices.

(6) Provision for impairment reserve of financial assets (excluding accounts receivable)

On balance sheet date, the carrying amounts of financial assets (except for those measured at fair value through

profit or loss of the period) are assessed for impairment. Provision for impairment is made when there exists

objective evidence that impairment of a financial asset has occurred.

For financial assets, objective evidence of impairment includes, but not limited to:

①significant financial difficulty of the issuer or debtor;

②breach of contract, such as delinquency or default in interest and principal payments made by the debtor;

33

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

③the creditor, for economic or legal reasons, granting concession to the debtor in financial difficulty;

④it becoming probable that the debtor will enter bankruptcy or financial reorganization;

⑤the disappearance of an active market for that financial asset because of financial difficulties of the issuer;

⑥upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable

decrease in the estimated future cash flows from the 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. Such

observable data includes adverse change in the payment status of debtor of the group of assets, or increased

unemployment rate in the country or region where the debtor is located, decreased price of collateral in the region

where it belongs, recession in the industry, etc.;

⑦significant adverse changes in the technological, market, economic or legal environment in which the issuer of

equity instrument operates, indicating that the cost of the equity instrument investment may not be recovered by

the investor;

⑧a significant or prolonged decline in the fair value of the investment in equity instrument;

Specific method for impairment of financial assets:

①Impairment of available-for-sale financial asset

As for available-for-sale financial assets, in case that there is any objective evidence indicating available-for-sale

equity instrument investment is impaired (including fair value of equity instrument investment occurs significant

or non-temporary decline, impairment shall be recognized.

Where an available-for-sale financial asset is impaired, even if the recognition of the financial asset has not been

terminated, the accumulative losses arising from the decrease of the fair value of the owner’s equity which was

directly included shall be transferred out and recorded into the profits and losses of the current period. The

accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the

sold financial asset after deducting the principals as taken back, the current fair value and the impairment-related

losses as was recorded into the profits and losses of the current period.

As for the available-for-sale debt instruments whose impairment-related losses have been recognized, if, within

the accounting period thereafter, the fair value has risen and are objectively related to the subsequent events that

occur after the originally impairment-related losses were recognized, the originally recognized impairment-related

losses shall be reversed and be recorded into the profits and losses of the current period. Impairment loss occurred

to available-for-sale equity instrument investment shall be reverted through equity when the value of the equity

instrument rises up. However, impairment loss in respect of equity instrument investment for which there is no

quoted price in an active market and for which fair value could not be measured reliably, or impairment loss in

relation to a derivative financial asset linked with the equity instrument for which the settlement shall be subject to

34

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

delivery of the equity instrument, shall not be reverted.

②Provision for impairment of held-to-maturity investments:

If there is objective evidence that indicates impairment has occurred on a held-to-maturity investment, the

difference between its carrying amount and the present value of its estimated future cash flow is recognized as

impairment loss. If there is subsequent evidence to prove that its value has recovered, the originally recognized

impairment loss may be reversed and recognized in profit or loss for the period, however the carrying amount so

reversed may not exceed the amortization cost of the financial asset at the date of reversal had there been no

provision for impairment.

11. Account receivable

(1) Account receivable with single significant amount and withdrawal single item bad debt provision

Account with single significant amount Over RMB 5 million

Conducted impairment testing separately, balance between the

present value of future cash flow and its carrying value, bad

Withdrawal method for bad debt provision of account

debt provision withdrawal and reckoned into current

receivable with single significant amount

gains/losses. For those without impairment being found after

test, collected into relevant combination for accrual.

(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk

characteristics portfolio

Combination Bad debt provision accrual

Aging of accounts group Age analysis method

Group with bad debt provision accrual by aging:

√ Applicable □ Not applicable

Age Accrual ratio Accrual ratio for other receivable

Within one year (one year included) 0.30% 0.30%

1-2 years 0.30% 0.30%

2-3 years 0.30% 0.30%

Over 3 years 100.00% 100.00%

3-4 years 100.00% 100.00%

4-5 years 100.00% 100.00%

Over 5 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

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item

If any objective evidence shows that it may has impaired, such

as the debtor revoke, bankruptcy or death, and after liquidate

Reasons for provision of bad debt reserve

with bankrupt’s estates or heritage, the money still

un-collectable, and in sufficient of cash flow

As for the receivable with objective evidence shows that it

Provision method of bad debt reserve might be impaired, an independent impairment test may be

carried out for impairment losses recognized

12. Inventory

Whether the company needs to comply with the disclosure requirements of the particular industry

No

(1) Classification of inventory

The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods

on hand, wrap page, low value consumables, materials for consigned processing and goods sold.

(2) Valuation of inventories

Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs

and other costs. The prices of inventories are calculated using weighted average method when they are delivered.

(3) Inventory system

Perpetual inventory system is adopted.

(4) Provision for inventory impairment

When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is

allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value

of stock in inventory (including finished products, inventory merchandize and materials for sale) that can be sold

directly is determined using the estimated saleable price of such inventory deducted by the cost of sales and

relevant taxation over the course of ordinary production and operation. The net realizable value of material in

inventory that requires processing is determined using the estimated saleable price of the finished product

deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary

production and operation. The net realizable value of inventory held for performance of sales contract or labor

service contract is determined based on the contractual price; in case the amount of inventory held exceeds the

contractual amount, the net realizable value of the excess portion of inventory is calculated using the normal

saleable price.

Provision for impairment is made according to individual items of inventories at the end of the period; however,

for inventories with large quantity and low unit price, the provision is made by categories; inventories of products

that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

measured separately are combined for provision for impairment.

If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed

and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.

13. Classified as assets held for sale

If a non-current asset can be promptly sold at its existing status only according to the practice terms in connection

with disposal of this kind of assets, and the Company has already made resolution on disposal of the non-current

asset and entered into irrevocable transfer agreement with the transferee, and this transfer will be completed

within one year, then the non-current asset would be calculated as non-current asset held for sale which would be

not applicable to depreciation or amortization since the date of classification as asset held for sale, and would be

measured at the lower of its carrying value less disposal cost and fair value less disposal cost. Non-current asset

held for sale consists of single item asset and disposal group. If a disposal group is a group of assets as defined by

No.8 of Business Accounting Standards-Assets Impairment, and goodwill arising from business combination shall

be allocated to the group of assets under this accounting principle, or the disposal group constitutes one operation

of the group of assets, then the disposal group includes the goodwill arising from business combination.

For single non-current asset and asset in disposal group classified as assets held for sale, they shall be presented in

balance sheet separately as current assets. For liabilities in disposal group relating to the transferred assets

classified as assets held for sale, they shall be presented in balance sheet separately as current liabilities.

If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current

asset held for sale, the Company will cease such recognition and measure the asset at the lower of (1)the carrying

value of the asset or disposal group prior to being classified as held for sale, based on the amount adjusted with

the depreciation, amortization or impairment which should have been recognized assuming it had not been

classified as held for sale; (2)the recoverable amount on the date when the Company decides to cease disposal.

14. Long-term equity investments

(1) Determination of investment costs

①If it is formed by the business combination under the common control, and that the combining party takes cash

payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation

consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date of

combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial

investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for

long-term equity investment and the book value of paid consolidation consideration or the total face value of

issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings

shall be adjusted.

As for business combination under the common control realized by the Company through several transactions, the

initial investment cost of the investment shall be determined based on the share of the carrying value of the

owners’ equity of the consolidated party as calculated according to the shareholding proportion on the

consolidation date. Difference between initial investment cost and the carrying value of long-term equity

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

investment before combination and the sum of carrying value of newly paid consideration for additional shares

acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the

balance of capital reserve is insufficient, any excess is adjusted to retained earnings.

②As for long-term equity investment formed from business combination not under common control, the fair

value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.

③Except those ones formed by the business combination, for all items obtained by means of cash payment,

actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance

of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For

those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the

initial investment cost, provided that the value agreed in the contract or agreement shall be fair.

(2) Subsequent measurement and profit or loss recognition

For a long-term equity investment where the Company can exercise control over the investee, the long-term

investment is accounted for using the cost method in the Company’s financial statements. The equity method is

adopted when the Group has joint control, or exercises significant influence on the investee.

Under cost method, long term equity investment is measured at initial investment cost. Except for the price

actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is

included in the consideration, the Company recognizes cash dividends or profits declared by the investee as

current investment gains, and determine whether there is impairment on long term investment according to

relevant assets impairment policies.

Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair

value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of the

long-term equity investment. When the initial investment cost is lower than the share of fair value in the net

identifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment of

cost of the long-term equity investment.

Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its

attributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and

adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses after

making appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’s

identifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating the

portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributable

to the investing entity according to its shareholding proportion (but impairment losses for assets arising from

internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the

Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net

losses of the investee is recognized to the extent the carrying amount of the investment together with any

long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

the Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term

equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includes

the corresponding adjustments in the owners’ equity of the Group.

(3) Determination of control and significant influence on investee

Control is the power over an investee. An investor must have exposure or rights to variable returns from its

involvement with the investee, and the ability to use its power over the investee to affect the amount of the

investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions

of the investee but is not control or joint control with other parties over those policies

(4) Disposal of long-term equity investment

①Partial disposal of long term investment in which control is retained

When long term investment is been partially disposed but control is retained by the company, the difference

between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit

or loss.

②Partial disposal of long term investment in which control is lost

When long term investment is partially disposed and control is lost as a result, the carrying value of the long term

invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceeds

should be recognized as profit or loss. The residual part should be treated as long term investment or other

financial assets according to their carrying amount. After partial disposal, if the company is able to exert

significant influence or common control over the investee, the investment should be measured according to cost

method or equity method, in compliance with relevant accounting standards and regulations.

(5) Impairment test and provision for impairment

If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint

ventures is impaired, provision of impairment shall be made against the difference between the carrying amount

and the recoverable amount of the investment.

15. Investment property

Measurement mode

Measured by cost method

Depreciation or amortization method

Investment property refers to the real estate held with purpose of rent earning, capital appreciation or both

of them.

Investment properties of the Company include:

(1) Land use right which has been rented out;

(2) Land use right which is held for transfer upon appreciation;

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(3) Buildings which has been rented out.

Investment property is initially measured at the cost when acquired. The Company makes subsequent

measurement on investment property under cost model on the balance sheet date. Depreciation method for

constructions and buildings under the item of fixed assets are the same, and amortization method for land use right

and land use right under the item of intangible assets are the same.

16. Fixed assets

(1) Confirmation conditions

Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in

excess of 1 financial year.

Fixed assets may be recognized unless it simultaneously meets the conditions as follows:

①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and

②The cost of the fixed assets can be measured reliably.

(2) Depreciation methods

Yearly depreciation

Categories Method Years of depreciation Scrap value rate

rate

Straight-line

Housing buildings 20 10% 4.5%

depreciation

Machines and Straight-line

10 10% 9%

equipment depreciation

Straight-line

Office equipment 5 10% 18%

depreciation

Straight-line

Electronic equipment 5 10% 18%

depreciation

Transportation Straight-line

5 10% 18%

equipment depreciation

Straight-line

Other equipment 5 10% 18%

depreciation

The fixed assets accrued full provisions for diminution in value should no long accrue the depreciation of fixed assets. The fixed

assets accrued provisions for diminution in value should deduct the accrued amounts of the provision for impairment of fixed assets,

and recalculate and confirm the depreciation rate and depreciation amount according to the useful life.

(3) Reorganization basis, valuation and depreciation method for financial lease assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of asset ownership to the lessee and titles to the assets may or may not eventually be transferred. For

fixed assets acquired under finance leases, the basis for provision of leased assets depreciation is the same as that

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

of self-owned fixed assets. When it can be reasonably determined that the ownership of a leased asset will be

transferred at the end of the lease term, it is depreciated over the period of expected use; otherwise, the lease asset

is depreciated over the shorter period of the lease term and the period of expected use.

17. Project under Construction

(1) Class of construction in progress

Construction in progress is measured case by case.

(2) Standards and timing of carrying forward construction in progress into fixed assets

The initial book values of the fixed assets are stated at total expenditures incurred before construction in progress

reaching the working condition for their intended use. For construction in progress that has reached working

conditions for its intended use but for which the completion of settlement has not been handled, it shall be

transferred into fixed assets at the estimated value according to the project budget, construction price or actual

cost, etc. from the date when it reaches the working conditions for its intended use. And the fixed assets shall be

depreciated in accordance with the Company’s policy on fixed asset depreciation. Adjustment shall be made to the

originally and provisionally estimated value based on the actual cost after the completion of settlement is handled,

but depreciation already provided will not be adjusted.

18. Borrowing expenses

(1) Principles of recognizing capitalization of borrowing expenses

The borrowing expenses of the Company directly attributable to the construction or production of an asset

meeting capitalization conditions are capitalized and recognized in relevant asset costs; other borrowing expenses

are recognized as expenses based on the amount incurred and recognized in profit or loss for the period.

An asset that meets the capitalization conditions refers to fixed assets, real estate investments and inventories that

require a considerable amount of time for construction or production to reach the expected usable or saleable

condition.

Borrowing expenses are capitalized when all of the following conditions are met:

①the asset expense has occurred, which includes expenses in the form of cash paid, nonmonetary asset

transferred or interest-bearing obligations assumed for the construction or product of an asset that meets

capitalization conditions;

②the borrowing expenses have occurred;

③the necessary construction or production activities for bringing the asset to the expected usable or saleable

conditions have started.

Capitalization of borrowing expenses is suspended when any abnormal interruption continues for over three

months during the construction or production of an asset that meets capitalization conditions.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

When the construction or production of an asset meeting capitalization conditions has reached expected useful or

saleable conditions, the capitalization of borrowing expenses is stopped.

When the a portion of the construction or production of an asset meeting capitalization conditions has completed

and can be used individually, the capitalization of borrowing expenses of such portion of asset is stopped.

(2) Capitalization period of borrowing expenses

Capitalization period refers to the time starting from the borrowing expenses are capitalized to the time

capitalization is stopped, except for the period which capitalization of borrowing expenses is suspended.

(3) Calculation of capitalized amount of borrowing expenses

Interest expenses of special loans (net of interest income from unutilized loans deposited in bank or investment

gain earned from temporary investment) and supplementary expenses incurred for the construction or production

of asset that meets capitalization conditions before the asset reaches expected useable or saleable condition are

capitalized.

The interest amount that should be capitalized on normal borrowings is calculated based on the weighted average

of expenses of the aggregate asset exceeding the expenses of the portion of special loan multiplied by the

capitalization ratio of the normal borrowings utilized. Capitalization ratio is calculated based on normal weighted

average interest rate.

19. Biological assets

Nil

20. Oil-and-gas assets

Nil

21. Intangible assets

(1) Valuation method, service life and impairment test

(1) Measurement of intangible assets

Intangible assets are accounted at the actual cost when acquired. The cost of externally purchased intangible assets

includes the purchase price, relevant taxation and other expenses directly attributable to bringing the asset to

expected usage. If payment for the price of intangible assets purchased is delayed beyond normal credit conditions

and is in fact financing in nature, the cost of the intangible asset is determined based on the present value of the

purchase price.

For intangible asset obtained through debt restructuring for offsetting the debt of the debtor, the entry value of the

intangible asset is determined based on its fair value, and the difference between the carrying amount of the

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

restructured debt and the fair value of the intangible asset used for offsetting the debt is recognized in profit or

loss for the period. The entry value of intangible asset received in an exchange for non-monetary asset is based on

the fair value of the asset surrendered, provided that the asset received in exchange for non-monetary asset has a

commercial substance and the fair value of both the asset received and the asset surrendered can be reliably

measured, except there is definite evidence that the fair value of the asset received is more reliable; for exchange

of nonmonetary asset that cannot satisfy the above conditions, the cost of the intangible asset received is based on

the carrying amount of the asset surrendered and the amount of relevant taxation payable, and no profit or loss is

recognized.

For intangible asset obtained through business absorption or combination of entities under common control, the

entry value is determined by the carrying amount of the combined party; for intangible asset obtained through

business absorption or merger of entities not under common control, the entry value is determined by the fair

value of the intangible asset.

(2) Amortization of intangible assets

Intangible asset with a limited life is amortized using straight line method over the term which it brings economic

benefit to the Company. If the term of economic benefit the intangible asset can bring to the Company cannot be

estimated, it is deemed to be an intangible asset with indefinite life, which shall not be amortized.

(3) Regular review of useful life

The expected useful life and amortization method for intangible assets with definite useful life are reviewed at the

end of each year, and adjusted when necessary. In case that the useful life of an intangible asset is limited, the

Company shall estimate the term of the useful life or quantity of output or similar measurement units constituting

the useful life. The useful life of intangible assets shall be reviewed annually, and they are also subject to

impairment test. At the end of each accounting period, useful life and amortization method for intangible assets

with definite useful life are reviewed. Where the useful life and amortization method is different from the previous

estimate, the company shall change term and method for amortization. Besides, the company shall also review the

useful life of intangible assets with indefinite useful life in each accounting period. if there is any evidence

showing that an intangible asset has definite useful life, the company shall estimate the useful life according the

above rules.

(4) Impairment of intangible assets

The Company makes a judgment on whether there is any sign of possible assets impairment on the balance sheet

date. With respect to goodwill arising from business combination and intangible assets with indefinite useful life,

they are subject to impairment test annually regardless of whether there is any sign of impairment. If there is any

sign of impairment, the company shall estimate the recoverable amount which shall be determined at the higher of

the net amount of fair value of the asset less disposal costs and the present value of the predicted future cash flow

of the asset. In particular, the disposal costs include legal expenses, taxes, delivery expense relating to the asset

disposal and other expenses directly occurred to make the asset available for sale.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(2) Internal accounting policies relating to research and development expenditures

(1) Categorization of the expenditure in research stage and expenditure in development stage

Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:

①it is technically feasible that the intangible asset can be used or sold upon completion;

②there is intention to complete the intangible asset for use or sale;

③the intangible asset can produce economic benefits, including there is evidence that the products produced using

the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use,

there is evidence that there exists usage for the intangible asset;

④there is sufficient support in terms of technology, financial resources and other resources in order to complete

the development of the intangible asset, and there is capability to use or sell the intangible asset;

⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.

22. Impairment of long-term assets

The Company makes a judgment on whether there is any sign of possible long-term assets impairment on the

balance sheet date. Where there is a sign indicating potential impairment, the Company will estimate the

recoverable amount. And if the recoverable amount of an asset is less than its carrying value, the carrying value

shall be written down to the recoverable amount and the amount written down shall be recognized as impairment

loss and included in current profit or loss. Meanwhile, the Company shall make impairment provision for the asset

accordingly.

No matter whether there is any sign of possible assets impairment, the goodwill formed by the merger of

enterprises and intangible assets with uncertain service lives shall be subject to impairment test every year.

The estimate of the recoverable amount of the assets are determined at the higher of the net amount of the fair

value less the disposal expenses and the present value of the estimated future cash flows.

The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the

recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to

which the asset belongs.

Once the asset impairment loss is recognized, it will not be reversed in the subsequent periods.

After the loss of asset impairment has been recognized, the depreciation or amortization expenses of the impaired

asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the

asset systematically (deducting the expected net residual value) within the residual service life of the asset.

23. Long-term deferred expenses

Long-term deferred expenses are those prepaid expenses with an amortization period of more than one year

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(excluding one year), such as improvement expense occurred on fixed assets leased under operating leasing

arrangement. Long-term deferred expenses are amortized in installment on an average basis over the period which

is expected to be benefitted from such expenses. In case that the long-term deferred expenses are not likely to

benefit the subsequent accounting periods, the outstanding value of the item to be amortized shall be included in

current profit or loss in full.

24. Employee compensation

(1) Accounting treatment for short-term compensation

During the accounting period when staff providing service to the Company, the actual short-term compensation

occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The

non-monetary welfare is measured by fair value.

(2) Accounting treatment for post-employment benefit

The post-employment benefit including the defined contribution plans. And defined contribution plans including

basic endowment insurance, unemployment insurance and annuity, corresponding payable amount will reckoned

into relevant assets costs or current gains/losses while occurred.

(3) Accounting for retirement benefits

When the Company terminates the employment relationship with employees before the end of the employment

contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the

Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and

included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for

dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company

recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is

earlier.

(4) Accounting for other long-term employee benefits

For other long-term employee benefits provided by the Company to its employees, if satisfy with the established

withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for

under defined benefit scheme.

25. Accrued liabilities

(1) When the obligations arising from provision of external guarantee, lawsuits, product quality guarantee and

contract loss and other contingent issues become the present obligations of the company, the performance of

which is likely to result in outflow of benefit from the company and the amount of which can be measured reliably,

the company shall recognize such obligations as projected liabilities.

(2) Projected liabilities are initially measured at the best estimate on the expenses required to perform the relevant

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

present obligation by the Company, and the carrying value of project liabilities are reviewed on each balance sheet

date.

26. Share-based payment

Share based payment refers to the transactions involving grant of equity instrument or assume liabilities as

determined based on equity instrument for the purpose of acquiring services from employees or other parties.

Share based payment is divided into the equity settled share based payment and cash settled share based payment.

The equity-settled share-based payment in return for employee services shall be measured at the fair value of the

equity instruments granted to the employees. The cash-settled share-based payment shall be measured at the fair

value of the liability that determined on the basis of shares or other equity instruments undertaken by the

enterprise

27. Other financial instruments including senior shares and perpetual bonds

(1) Distinguish of senior shares and perpetual bonds

The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject to

satisfaction of all the below conditions:

①the financial instrument excludes delivery of cash or other financial assets to others, or exchange for contractual

obligations on financial assets or financial liabilities with others under potential negative conditions;

②if its own equity instruments are required or may be used to settle the financial instruments, it excludes the

contractual obligation to deliver varied numbers of own equity instruments for settlement provided that the

financial instruments are non-derivatives; if the financial instruments are derivatives, the Company can only settle

the financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash or

other financial assets.

Other than the financial instruments which can be classified as equity instruments under the above conditions,

other financial instruments issued by the Company shall be classified as financial liabilities.

In case that financial instruments issued by the Company are compound financial instruments, they shall be

recognized as liabilities at the fair value of liabilities portion. The actual amount received less fair value of the

liabilities portion shall be recognized as other equity instrument. Transaction expenses occurred in issuance of

compound financial instruments are allocated to the portions of liabilities and equities according to their

respective proportion to the total issuance price.

(2) Accounting for perpetual bonds and senior shares

For perpetual bonds and senior shares classified into financial liabilities, their relevant interest, dividends, gains or

losses and gains or losses arising from redemption or refinancing are all included in current profit or loss other

than those borrowing expenses which meet condition for capitalization (please refer to Note V-18 “borrowing

expenses”).

For perpetual bonds and senior shares classified into equity instruments, their issuance (including refinancing),

repurchase, sale or cancel are treated as change of equity, and relevant transaction fees are also deducted from

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

equity. The Company accounts for allocation of holders of equity instruments as profit distribution.

The Company dose not recognizes change of fair value of equity instruments.

28. Revenue

Whether the company needs to comply with the disclosure requirements of the particular industry

No

(1) Goods sales

Income from sale of goods is recognized when the following conditions are met: (1)the Company has transferred

the key risks and return on the ownership of the merchandize to the buyer; (2)the Company has not retained

continued management rights associated with ownership and no longer exercises effective control on the

merchandize sold; (3)the amount of income can be reliably measured; (4)the relevant economic benefits are very

likely to flow to the enterprise; (5)the costs incurred or to be incurred can be reliably measured.

(2) Rendering of services

When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it

is probable that the economic benefits will flow to the Company, the percentage of completion of the transaction

can be determined reliably, and the costs of the transaction incurred and to be incurred can be measured reliably),

revenue from rendering of services is recognized using the percentage of completion method, and the stage of

completion is determined at the proportion of costs incurred to the estimated total costs. When the outcome of the

transaction cannot be estimated reliably at the balance sheet date, revenue is recognized based on the amount of

the costs incurred and the costs incurred are charged off at the same amount when the costs incurred are expected

to be recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of the period

when the costs incurred are not expected to be recovered.

(3) Transfer of asset use right

When the economic benefits related to the transaction is likely to flow to the Company and the income

amount can be reliably calculated, the Company shall recognize income arising from transfer of asset use right.

The income of interests is determined on basis of the time and real interest rate of the Company’s cash funds which

is utilized by other persons. The income of royalties is determined on basis of the chargeable time and method

fixed under relevant agreement or contract.

(4) Interest income

Recognized based on the times and real interest rates for the money used by others

29. Government Grants

(1)Determination basis for government grant related to assets and accounting treatment thereof

1) Type

47

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Government grant refers to those monetary assets and non-monetary assets received by the Company from

government at nil consideration. Based on the grantee as stipulated by the relevant government documents,

government grants are classified into those related to assets and those related to income.

Government grant related to assets refers to those obtained by the Company for construction or otherwise

formation of long term assets. Government grant related to income refers to such government grant other than

those related to assets.

2) Recognition of government grant

Amount of receivables relating to which there is evidence showing that the Company is able to meet relevant

financial supporting policies and is expected to be able for the Company to receive financial supporting funds

shall be recognized as government grant as at the end of a specific period, otherwise it shall be recognized upon

actual receipt.

Where government grant is monetary assets, it shall be measured based on the amount received or receivable.

Where government grant is non-monetary assets, it shall be measured at fair value, and if the fair value cannot be

measured reliably, it shall be measured at nominal value (RMB1.00). For those government grants measured at

nominal value, they shall be recorded in profit and loss for the period directly.

3) Accounting

A. Government grant related to assets shall be accounted to offset the carrying value of relevant assets or

recognized as deferred income. In case this kind of government grant has been recognized as deferred income,

it shall be recorded in profit or loss installment during the service life of the relevant assets under reasonable

and systematic methods. Government grant measured at nominal value shall be recorded in profit or loss for

the period directly.

In case that the relevant assets are disposed of, transferred, regarded as useless or destroyed prior to the end of

their service life, the deferred income balance not allocated yet shall be transferred into gains or loss from assets

disposal for the period.

Government grant associated with a company’s normal operation shall be recorded in other income or used to

offset relevant cost expenses based on the substance of economic business.

B. It is a common practice for governmental finance authorities to pay an enterprise discounted interests, and the

enterprise shall apply the discounted interests to offset relevant borrowing expense.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

C. In respect of recognized government grant which is required to return, it shall be accounted for during the

return period based on the following cases:

a. in case of offset of relevant assets’ carrying value upon initial recognition, the carrying value shall be

adjusted;

b. in case of existence of deferred income, carrying balance of deferred income shall be offset, and the surplus

portion (if any) shall be recorded in profit or loss for the period.

c. otherwise it shall be recorded in profit or loss for the period directly.

(2) Determination basis for government grant related to income and accounting treatment thereof

Government grant related to income shall be accounted for as follows:

1) recognized as deferred income in case that the grant is used to compensate the relevant cost expense or loss of a

company in future periods, and recorded in profit or loss for the period or offset relevant costs during the

period when the relevant cost expense or loss is recognized;

2) recorded in profit or loss for the period or offset relevant costs directly in case that the grant is used to

compensate the relevant cost expense or loss occurred by a company.

In respect of government grant which comprises portions related to assets and income both, different accounting

shall be adopted for different portions. Where it is difficult to distinguish these two portions, the grant shall be

classified as grant related to income in its entirety.

30. Deferred tax assets / deferred income tax liabilities

(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the

carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base

of items not recognized as assets and liabilities but with their tax base being able to be determined according

to tax laws) and in accordance with the tax rate applicable to the period during which the assets are expected

to be recovered or the liabilities are expected to be settled.

(2) A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to

obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there

is any exact evidence that it is probable that future taxable profits will be available against which deductible

temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.

(3) At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a

deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be

available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to

the extent that it becomes probable that sufficient taxable income will be available.

(4) The income tax and deferred tax for the period are treated as income tax expenses or income through profit or

loss, excluding those arising from the following circumstances: ① business combination; and ② the

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

transactions or items directly recognized in equity.

31. Lease

(1)Accounting for operating lease

When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method

over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as

profit or loss in the periods in which they are incurred.

When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the

lease term. Initial expenses, other than those with material amount and eligible for capitalization which are

recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged

into profit or loss in the periods in which they are incurred.

(2) Accounting for financing lease

When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception

of lease and the present value of minimum lease payment is recognized as the value of leased assets. The

minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as

unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each

period of the lease term, current finance cost is calculated using effective interest method.

When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of

lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured

balance also recorded. The difference between the sum of minimum lease income, initial direct expense and

unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period

of the lease term, current finance income is calculated using effective interest method.

32. Other important accounting policy and estimation

Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and

presented separately under operation segments and financial statements, which has fulfilled one of the following

criteria: ① it represents an independent key operation or key operating region; ② it is part of the proposed

disposal plan on an independent key operation or proposed disposal in key operating region; or ③ it only

establishes for acquisition of subsidiary through disposal.

Accounting for discontinued operation is set out in note V-13 “classified as assets held for sale”.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

33. Major accounting policy and changes

(1) Main accounting policy changes

√ Applicable □Not applicable

Content and reasons Approval procedures Note

Pursuant to the notice issued by the Ministry of Finance

Impact of this change of accounting

on 10 May 2017 relating to issuance of the amended

policies in our consolidated financial

No.16 of Enterprise Accounting Standards –

statement is the change of accounting

Government Grant (No. CK[2017]15), government

item for government grant: government

grant associated with a company’s normal operation

grant related to our normal operation

shall be recorded in “other income” or used to offset

shall be recorded as “other income” and

relevant cost expenses based on economic substance;

reported separately under the item of

government grant not associated with a company’s

“operating profit” in profit statement.

normal operation should be recognized as 2nd Meeting of 10th BOD

These adjustments are only made to the

non-operating income or expense. These provisions

reporting items and structure of profit

have come into effect since 12 June 2017. Government

statement, with no impact on the

grants existed as at 1 January 2017 shall be accounted

Company’s profit for the period or

for under prospective application method, and those

shareholders’ interests, no impact on our

new government grants increased between 1 January

financial condition and operating results

2017 and the date when the new provision came into

and no involvement of the retrospective

effect are subject to adjustments under the new

adjustment for the previous years.

government grant standards.

(2) Changes of important accounting estimate

□ Applicable √ Not applicable

34. Other

Nil

VI. Taxes

1. Main tax category and tax rate

Tax category Tax calculation evidence Tax rate

Sales of goods, taxable labor service

Value added tax 17%

revenue and taxable income

Tax for maintaining and building cities Turnover tax payable 7%

Taxable income 25.00%

Business income tax

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Educational surtax Turnover tax payable 3%

Turnover tax payable 2%

Local educational surtax

Amount of the purchasing and sales

Stamp tax 0.03%

contract

Disclose reasons for different taxpaying body

Taxpaying body Income tax rate

2. Tax preference

Nil

3. Other

Nil

VII. Notes to Items in Consolidated Financial Statements

1. Monetary fund

In RMB

Item Ending balance Opening balance

Cash on hand 77,429.04 132,652.06

Cash in bank 15,099,876.44 23,768,774.82

Other monetary fund 113,860.83

Total 15,177,305.48 24,015,287.71

Other explanation

Separate explanation is required for accounts with restricted application purposes, deposited overseas and of

potential recovery risks arising from pledge, mortgage or frozen.

2. Financial assets measured by fair value and reckoned into current gains/losses with its variation

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

3. Derivative financial assets

□ Applicable √ Not applicable

52

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

4. Note receivables

(1) Classification of notes receivable

In RMB

Item Ending balance Opening balance

Bank acceptance bill 5,139,578.00 2,220,000.00

Total 5,139,578.00 2,220,000.00

(2) Pledge at period-end

In RMB

Item Amount pledge at period-end

Total 0.00

(3) Notes endorsement or discount and undue on balance sheet date

In RMB

Item Amount derecognition at period-end Amount not derecognition at period-end

Bank acceptance bill 25,066,473.00

Total 25,066,473.00

(4) Notes transfer to account receivable due for failure implementation by drawer at period-end

In RMB

Item Amount transfer to account receivable at period-end

Total 0.00

Other explanation

There are no notes that transfer to account receivable due for the drawer failure to perform the contract at

period-end.

5. Accounts receivable

(1) Accounts receivable by category

In RMB

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book

Accrual Accrual Book value

Amount Ratio Amount value Amount Ratio Amount

ratio ratio

53

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Receivables with bad

debt provision 10,787,3 1,287,54 9,499,833 12,479, 1,292,617 11,186,420.

85.23% 11.94% 86.34% 10.36%

accrual by credit 75.68 2.32 .36 037.76 .31 45

portfolio

Accounts with single

significant amount

1,869,94 747,977. 1,121,966 1,974,9 789,977.5 1,184,966.3

and bad debts 14.77% 40.00% 13.66% 40.00%

3.96 58 .38 43.96 9 7

provision accrued

individually

12,657,3 2,035,51 10,621,79 14,453, 2,082,594 12,371,386.

Total 100.00% 16.08% 100.00% 14.41%

19.64 9.90 9.74 981.72 .90 82

Receivable with single significant amount and withdrawal bad debt provision separately at end of period:

□ Applicable √ Not applicable

In combination, accounts receivable whose bad debts provision was accrued by age analysis:

√ Applicable □ Not applicable

In RMB

Ending balance

Age

Account receivable Bad debt provision Accrual ratio

Within one year

Within 1 year 9,006,798.39 27,020.40 0.30%

Subtotal within one year 9,006,798.39 27,020.40 0.30%

1-2 years 79,894.08 239.68 0.30%

2-3 years 441,726.15 1,325.18 0.30%

Over 3 years 1,258,957.06 1,258,957.06 100.00%

Total 10,787,375.68 1,287,542.32 11.94%

Explanation on combination determines:

According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single significant

amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and

the reserve for bad debt provision is withdrawn with age analysis method.

In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:

□ Applicable √ Not applicable

In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:

Nil

(2) Bad debt provision accrual collected or switch back

Bad debt provision accrual was 0 Yuan; the amount collected or switches back amounting to 47,075.00 Yuan.

Important bad debt provision collected or switch back:

54

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

In RMB

Company Collected or switch back amount Collection way

Total 0.00 --

Nil

(3) Account receivable actual charge off in the Period

In RMB

Item Amount written off

Written-off for the major receivable:

In RMB

Verification Arising from related

Company Nature Amount written off Reason for write-off

procedures transaction (Y/N)

Total -- 0.00 -- -- --

Explanation for write-off of receivables:

There is no actual write off of accounts receivable in Period.

(4) Top 5 receivables at ending balance by arrears party

Relationship Ratio in tota

Account

Item with the Amount l receivables Nature

age

company (%)

Within Trade

Jinan Yuxintai Sales Co., Ltd. Unrelated party 3,499,296.65 27.65%

one year receivable

Suzhou Jiaxin Economy and Trade Co., Within Trade

Unrelated party 1,457,049.92 11.51%

Ltd. one year receivable

Within Trade

Jinan Daming Kemao Co., Ltd. Unrelated party 1,294,549.38 10.23%

one year receivable

Shijiazhuang Dasong Technology Co., Within Trade

Unrelated party 1,278,283.50 10.10%

Ltd. one year receivable

Over 3 y Trade

Hebei Branch of CBC Group Unrelated party 1,144,690.91 9.04%

ears receivable

Total - 8,673,870.36 - 68.53% -

(5) Receivable derecognition due to transfer of financial assets

Note: explain the transfer way for financial assets, amount of receivable that re-recognized, and gains/losses while re-recognized.

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(6) Assets and liability resulted by receivable transfer and continuous involvement

Note: explain the transfer way for financial assets, and amount of assets or liabilities continuous involvement item by item

Other explanation:

6. Advance payment

(1) Listed by account age

In RMB

Ending balance Opening balance

Age

Amount Ratio Amount Ratio

Within one year 1,296,894.88 89.20% 1,667,424.89 89.29%

1- 2 years 200,000.00 10.80% 200,000.00 10.71%

2-3 years

Over 3 years

Total 1,496,894.88 -- 1,867,424.89 --

Explanation on un-settlement in time for advance payment with over one year account age and major amounts:

The subscription 200,000.00 Yuan paid to Huihuangda Bicycle (Shenzhen) Co., Ltd. for 1000 OEM bicycles in

advance. The subscription will pay the final money according to the agreement. The business still not settles till

end of the period

(2) Top 5 advance payment at ending balance by prepayment object

Ratio in t

Relationship

Account otal adva

Item with the Amount Nature

age nce e pay

company

ment (%)

Unrelated Within on

Tianjin Shuntian Electric Bicycle Co., Prepayments for

1,279,523.55 e 85.48%

Ltd. materials

year

Huihuangda Bicycle (Shenzhen) Co., Unrelated Prepayments for

200,000.00 1-2 years 13.36%

Ltd. materials

Unrelated Within on

Shenzhen ZHengyijia Technology Prepayments for

10,800.00 e 0.72%

Co.,Ltd. materials

year

Unrelated Within on

Prepayments for

Shenzhen Jiekang Industrial Co., Ltd. 3,375.00 e 0.22%

materials

year

56

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Ratio in t

Relationship

Account otal adva

Item with the Amount Nature

age nce e pay

company

ment (%)

Unrelated Within on

Shenzhen Yuanshun Sports Apparatus Prepaid service

1,890.00 e 0.13%

Co., Ltd. charge

year

Total - 1,495,588.55 - 99.91% -

Note: In accordance with the concentration ratio, aggregation or closing balance of prepayment of the top five closing balance

respectively disclosed and the proportion of the total number of closing balance of prepayment

Other explanation:

7. Interest receivable

(1) Interest receivable

In RMB

Item Ending balance Opening balance

Time deposit

Loan by mandate

Debt investment

Total 0.00 0.00

(2) Important overdue interest

Overdue time Overdue Impairment (Y/N) and

Borrower Ending balance Overdue reason

time judgment basis

-- -- --

Total 0.00

Other explanation:

Nil

8. Dividend receivables

(1) Dividend receivables

In RMB

Item (or the invested entity) Ending balance Opening balance

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(2) Major dividend receivables with over one year age

In RMB

Item or the invested Impairment (Y/N) and

Ending balance Age Reasons

entity) judgment basis

Total 0.00 -- -- --

Other explanation:

Nil

9. Other accounts receivable

(1) Other accounts receivable by category

In RMB

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Book

Accrual Accrual Book value

Amount Ratio Amount value Amount Ratio Amount

ratio ratio

Other receivables

with bad debt 1,046,10 452,521. 593,588.2 1,111,4 452,717.7

100.00% 43.26% 100.00% 40.73% 658,754.09

provision accrual by 9.89 64 5 71.82 3

credit portfolio

1,046,10 452,521. 593,588.2 1,111,4 452,717.7

Total 100.00% 43.26% 100.00% 40.73% 658,754.09

9.89 64 5 71.82 3

Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:

□ Applicable √ Not applicable

In combination, other accounts receivable whose bad debts provision was accrued by age analysis

√ Applicable □ Not applicable

In RMB

Ending balance

Age

Other accounts receivable Bad debt provision Accrual ratio

Within one year

Within one year 314,641.37 943.92 0.30%

Subtotal within one year 314,641.37 943.92 0.30%

1-2 years 208,705.00 626.12 0.30%

2-3 years 72,028.00 216.08 0.30%

Over 3 years 450,735.52 450,735.52 100.00%

Total 1,046,109.89 452,521.64 43.26%

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Explanations on combination determine:

According to the business scale, business nature, and customers’ settlement, etc., the other account receivable with single big amount

is determined to be RMB 5 million. The other account receivable with single big amount has no depreciation reserve, and the reserve

for bad debt provision is withdrawn with age analysis method.

In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:

□ Applicable √ Not applicable

In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:

□ Applicable √ Not applicable

(2) Bad debt provision accrual collected or switch back

Bad debt provision accrual was 0 Yuan; the amount collected or switches back amounting to 196.09 Yuan.

Important bad debt provision collected or switch back:

In RMB

Company Amount reversal or collected Collection way

Total 0.00 --

Nil

(3) Other receivables actually written-off during the reporting period

In RMB

Item Amount written off

Written-off for the major other receivable:

In RMB

Nature of other Verification Arising from related

Company Amount written off Reason for write-off

receivables procedures transaction (Y/N)

Total -- 0.00 -- -- --

Explanation for write-off of other receivables:

Nil

(4) Other receivables by nature

In RMB

Nature Ending book balance Opening book balance

Margin or deposit 584,750.00 503,614.00

Equipment money 311,400.00 311,400.00

Staff personal loans 72,098.50 111,870.60

Other 77,861.39 184,587.22

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Total 1,046,109.89 1,111,471.82

(5) Top 5 other receivables at ending balance by arrears party

In RMB

Ratio in total ending

Ending balance of

Company Nature Ending balance Age balance of other

bad bet provision

receivables

Shenzhen Luwei

Machine nary Equipment money 300,000.00 Over 3 years 28.68% 300,000.00

Equipment Co., Ltd.

Shenzhen

Anjingheng Margin or deposit 150,900.00 1-2 year 14.43% 452.70

Industrial Co., Ltd.

Shenzhen Material

Margin or deposit 135,723.00 1-2 year 12.97% 407.17

Group Co., Ltd.

Tianjin Lvchi

Margin or deposit 72,000.00 1-2 year 6.88% 216.00

E-Business Co., Ltd.

Alipay (China)

Network Technology Margin or deposit 50,000.00 1-2 year 4.78% 150.00

Co., Ltd.

Total -- 708,623.00 -- 67.74% 301,225.87

(6) Account receivable with government grants involved

In RMB

Time, amount and basis

Company Item Ending balance Ending age of amount collection

estimated

Total -- 0.00 -- --

(7) Other account receivable derecognition due to financial assets transfer

Nil

(8) Assets and liability resulted by other account receivable transfer and continuous involvement

Nil

Other explanation:

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

10. Inventory

Whether the company needs to comply with the disclosure requirements of the particular industry

No

(1) Inventory classification

In RMB

Ending balance Opening balance

Item Depreciation Depreciation

Book balance Book value Book balance Book value

reserve reserve

Raw materials 535,609.59 40,706.54 494,903.05 785,399.89 40,706.54 744,693.35

Finished goods 5,595,790.29 5,519.40 5,590,270.89 2,379,266.31 5,519.40 2,373,746.91

Total 6,131,399.88 46,225.94 6,085,173.94 3,164,666.20 46,225.94 3,118,440.26

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

(2) Inventory depreciation reserve

In RMB

Increase in the current period Decrease in the current period

Item Opening balance Switch back or Ending balance

Accrual Other Other

write-off

Raw materials 40,706.54 40,706.54

Finished goods 5,519.40 5,519.40

Total 46,225.94 46,225.94

(3) Explanation on capitalization of borrowing costs at ending balance of inventory

Nil

(4) Assets that completed without settlement from construction contract

In RMB

Item Amount

Other explanation:

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

11. Assets holding ready for sold

In RMB

Expected disposal

Item Ending book value Fair value Expected disposal time

expenses

Total 0.00 0.00 0.00 --

Other explanation:

Nil

12. Non-current assets due within one year

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

13. Other current assets

In RMB

Item Ending balance Opening balance

Prepaid intermediary fee 1,792,452.81 1,509,433.95

Prepaid tax 763,158.94 541,396.60

Total 2,555,611.75 2,050,830.55

Other explanation:

Nil

14. Financial assets available for sale

(1) Financial assets available for sale

In RMB

Ending balance Opening balance

Item Depreciation Depreciation

Book balance Book value Book balance Book value

reserves reserves

Total 0.00 0.00 0.00 0.00

(2) Financial assets available for sale measured by fair value at period-end

In RMB

Type Equity instrument Debt instrument Total

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

available for sale available for sale

(3) Financial assets available for sale measured by cost at period-end

In RMB

Book balance Depreciation reserves Ratio of

The share-holdi

Cash

invested Period-beg Period-beg ng in

Increased Decreased Period-end Increased Decreased Period-end dividend

entity inning inning invested

entity

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- 0.00

(4) Changes of impairment in Period

In RMB

Equity instrument Debt instrument

Type Total

available for sale available for sale

Balance of impairment

0.00

accrual at period-begin

Current accrual 0.00

Including: transfer-in

from other 0.00

comprehensive income

Current decrease 0.00

Including: switch back

due to fair value rebound 0.00

at period-end

Balance of impairment

0.00

accrual at period-end

(5) Fair value of equity instrument available for sale sharply declined or other-than-temporary declined at

period-end without depreciation reserves accrual

In RMB

Fair value Time of drops Amount with

Reasons for

Item Investment cost Ending fair value declined relative persistently impairment

un-accrual

to cost (month) accrual

Total 0.00 0.00 -- -- 0.00 --

Other explanation

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

15. Held-to-maturity investment

(1) Held-to-maturity investment

In RMB

Ending balance Opening balance

Item Depreciation Depreciation

Book balance Book value Book balance Book value

reserves reserves

Total 0.00 0.00 0.00 0.00

(2) Important held-to-maturity investment at period-end

In RMB

Bond Face value Coupon value Actual rate Maturity date

Total 0.00 -- -- --

(3) Held-to-maturity investment reclassify in the Period

Nil

Other explanation

Nil

16. Long-term account receivable

(1) Long-term account receivable

In RMB

Ending balance Opening balance

Discount rate

Item Bad debt Bad debt

Book balance Book value Book balance Book value section

provision provision

Total 0.00 0.00 0.00 0.00 --

(2) Long-term account receivable derecognition due to transfer of financial assets

Nil

(3) Assets and liability resulted by long-term account receivable transfer and continuous involvement

Nil

Other explanation

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

17. Long-term equity investment

In RMB

+,-

Ending

Other Cash

Investme balance

The Additiona comprehe dividend

Opening nt gains Other Ending of

invested l Capital nsive or profit Impairme

balance recognize equity Other balance impairme

entity investmen reduction income announce nt accrual

d under change nt

t adjustmen d to

equity provision

t issued

I. Joint venture

Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Associated enterprise

Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other explanation

Nil

18. Investment real estate

(1) Investment real estate measured at cost

□ Applicable √ Not applicable

(2) Investment real estate measured at fair value

□ Applicable √ Not applicable

(3) Certificate of title un-completed

In RMB

Item Book value Reasons for un-completed

Other explanation

Nil

19. Fixed assets

(1) Fixed assets

In RMB

Houses and Machines equipme Electronic

Item Transport tools Total

buildings nt equipment and

65

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

other

I. Original book

value:

1.Opening

2,959,824.00 564,123.99 416,629.06 635,351.81 4,575,928.86

balance

2. Increased in

0.00 0.00 0.00 31,940.00 31,940.00

the Period

(1) Purchase 0.00 0.00 0.00 31,940.00 31,940.00

(2)

construction in 0.00 0.00 0.00 0.00 0.00

process transfer-in

(3) the

increase in

0.00 0.00 0.00 0.00 0.00

business

combination

3. Decreased in

0.00 0.00 0.00 0.00 0.00

the Period

(1) Disposal or

0.00 0.00 0.00 0.00 0.00

scrap

4.Ending

2,959,824.00 564,123.99 416,629.06 667,291.81 4,607,868.86

balance

II. accumulated

depreciation

1.Opening

66,596.04 229,871.16 71,749.48 478,757.07 846,973.75

balance

2. increased in

66,596.04 50,771.16 18,748.32 9,021.45 145,136.97

the Period

(1) provision 66,596.04 50,771.16 18,748.32 9,021.45 145,136.97

3. Decreased in

0.00 0.00 0.00 0.00 0.00

the Period

(1) Disposal or

0.00 0.00 0.00 0.00 0.00

scrap

4.Ending

133,192.08 280,642.32 90,497.80 487,778.52 992,110.72

balance

66

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

III. impairment of

preparation

1.Opening

0.00 0.00 0.00 0.00 0.00

balance

2. increased in

0.00 0.00 0.00 0.00 0.00

the Period

(1) provision 0.00 0.00 0.00 0.00 0.00

3. Decreased in

0.00 0.00 0.00 0.00 0.00

the Period

(1) Disposal or

0.00 0.00 0.00 0.00 0.00

scrap

4.Ending

0.00 0.00 0.00 0.00 0.00

balance

IV. book value

1.Ending book

2,826,631.92 283,481.67 326,131.26 179,513.29 3,615,758.14

value

2. Opening

2,893,227.96 334,252.83 344,879.58 156,594.74 3,728,955.11

book value

(2) Fixed assets temporary idle

In RMB

Accumulated Depreciation

Item Original book value Book value Note

depreciation reserves

(3) Fixed assets leased through operating lease

In RMB

Accumulated

Item Original book value Depreciation reserves Book value

depreciation

(4) Fixed assets leased through operating lease

In RMB

Item Ending book value

67

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(5) Certificate of title un-completed

In RMB

Item Book value Reasons

Purchasing six properties of Lianxin

Garden with original value of

2,959,824.00 Yuan in 2016. The property

purchasing refers to the indemnificatory

housing for enterprise talent buying from

Shenzhen Housing and Construction

Six properties in Lianxin Garden 2,826,631.92 Bureau of Luohu District. According to

the agreement, the enterprise shall not

carrying any kind of property trading

with any units or individuals except the

government, and the company has no

property certification on the above

mentioned properties.

Other explanation

No accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at

period-end.

20. Construction in progress

(1) Construction in progress

In RMB

Ending balance Opening balance

Item Depreciation Depreciation

Book balance Book value Book balance Book value

reserves reserves

Total 0.00 0.00 0.00 0.00

(2) Changes in significant construction in progress

In RMB

Accumul including

Proporti

Fixed ated : interest Interest

Other on of

increased assets amount capitaliz capitaliz

Opening decrease Ending project Sourceof

Item Budget in the transfer-i Progress of ed ation rate

balance d in the balance investme funds

Period n in the interest amount of the

Period nt in

Period capitaliz of the period

budget

ation period

Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --

68

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(3) Depreciation reserves accrual

In RMB

Item Accrual Amount Reasons

Total 0.00 --

Other explanation

Nil

21. Engineering materials

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

22. Disposal of fixed assets

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

23. Productive biological assets

(1) Productive biological assets measured by cost

□ Applicable √ Not applicable

(2) Productive biological assets measured by fair value

□ Applicable √ Not applicable

24. Oil-and-gas assets

□ Applicable √ Not applicable

25. Intangible assets

(1) Intangible assets

In RMB

Item Land use right Patent Non-patent Trademark Total

69

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

technology

I. original book

value:

1.Opening balance 5,271,000.00 5,271,000.00

2. increased in the

0.00 0.00

Period

(1) Purchase 0.00 0.00

(2) internal R

0.00 0.00

&D

(3) the

increase in business 0.00 0.00

combination

3.DecreasedAmount 0.00 0.00

(1) Disposal 0.00 0.00

4.Ending balance 5,271,000.00 5,271,000.00

II. accumulated

depreciation

1.Opening balance 2,259,000.00 2,259,000.00

2. increased in the

376,500.00 376,500.00

Period

(1) provision 376,500.00 376,500.00

3.DecreasedAmount 0.00 0.00

(1) Disposal 0.00 0.00

4.Ending balance 2,635,500.00 2,635,500.00

III. impairment of

preparation

1.Opening balance 0.00 0.00

2. increased in the

0.00 0.00

Period

(1) provision 0.00 0.00

3.DecreasedAmount 0.00 0.00

(1) Disposal 0.00 0.00

4.Ending balance 0.00 0.00

IV. book value

1.Ending book

2,635,500.00 2,635,500.00

value

70

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

2. Opening book

3,012,000.00 3,012,000.00

value

Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end

(2) Land use right without certificate of title completed

In RMB

Item Book value Reasons

Other explanation:

No accrual of impairment provision due to there was no impairment evidence being found in intangible assets at

end of the period

26. Development expense

In RMB

Opening

Item Increased in the Period Decreased in the Period Ending balance

balance

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other explanation

Nil

27. Goodwill

(1) Original book value of goodwill

In RMB

The invested

Opening balance Increase during the year Decreased during the year Ending balance

entity or items

Total 0.00 0.00 0.00 0.00 0.00 0.00

(2) Depreciation reserves of goodwill

In RMB

The invested

Opening balance Increase during the year Decreased during the year Ending balance

entity or items

Total 0.00 0.00 0.00 0.00 0.00 0.00

Process of impairment testing, parameter and recognition method for impairment losses:

Nil

Other explanation:

Nil

71

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

28. Long-term unamortized expenses

In RMB

increased in the Amortized in the

Item Opening balance Other decrease Ending balance

Period Period

Total 0.00 0.00 0.00

Other explanation

Nil

29. 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

Asset depreciation

2,534,267.48 633,566.88 2,580,785.12 645,196.29

reserves

Total 2,534,267.48 633,566.88 2,580,785.12 645,196.29

(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

Total 0.00 0.00 0.00 0.00

(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

Deferred income tax

633,566.88 645,196.29

assets

(4) Details of unrecognized deferred income tax assets

In RMB

72

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Item Ending balance Opening balance

Total 0.00 0.00

(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

In RMB

Year Ending amount Opening amount Note

Total 0.00 0.00 --

Other explanation:

As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assets and deferred income

tax liabilities shall be measured at the tax rate applicable in the period in which the assets are expected to be recovered or liabilities

are expected to be settled according to relevant tax laws on the balance sheet date. The tax rate adopted by the Company in

calculating deferred income tax assets is 25% for both parent company and subsidiaries.

Due to the uncompensated loss of parent company, the Company did not recognize deferred income tax assets.

30. Other non-current assets

In RMB

Item Ending balance Opening balance

Advance payment for house 400,000.00 400,000.00

Total 400,000.00 400,000.00

Other explanation:

In2016, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to Shenzhen Housing and

Construction Bureau of Luohu District, the event still in process.

31. Short-term loans

(1)Types of short-term loans

In RMB

Item Ending balance Opening balance

Explanation on short-term loans category:

Nil

(2) Overdue outstanding short-term loans

Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:

In RMB

Unit Ending balance Lending rate Overdue time Overdue rate

Total 0.00 -- -- --

73

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Other explanation:

Nil

32. Financial liability measured by fair value and with its variation reckoned into current gains/losses

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

33. Derivative financial liabilities

□ Applicable √ Not applicable

34. Notes payable

In RMB

Type Ending balance Opening balance

Notes expired at year-end without paid was 0.00 Yuan

35. Account payable

(1) Account payable

In RMB

Item Ending balance Opening balance

Within 1 year (including 1year) 11,562,728.53 9,563,099.99

1-2 year (including 2year) 3,084.95 3,084.95

Over 3 years 185,792.84 185,792.84

Total 11,751,606.32 9,751,977.78

(2) Account payable with over one year book age

In RMB

Item Ending balance Reasons of un-paid or carry-over

Total 0.00 --

Other explanation:

(3) Top 5 payables at Period-end

Item Relationship Amount Account Ratio in total payables in Nature

74

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

with the age advance (%)

company

Baodao Vehicles Group Co., Within Trade

Unrelated party 3,859,528.31 32.84

Ltd. one year payable

Tianjin Luying Vehicles Co., Within Trade

Unrelated party 2,776,581.32 23.63

Ltd. one year payable

Jinda Intelligent Technology Within Trade

Unrelated party 2,506,554.35 21.33

Co., Ltd. one year payable

Tianjin Jianya Electronic Within Trade

Unrelated party 1,100,395.34 9.36

Technology Co., Ltd. one year payable

Taizhou Huangyan Jisheng Within Trade

Unrelated party 231,274.77 1.97

Industrial & Trade Co., Ltd. one year payable

Total 10,474,334.09 89.13

36. Account received in advance

(1) Account received in advance

In RMB

Item Ending balance Opening balance

Within one year (one year included) 968,316.34 3,257,952.74

1-2 years (2 years included) 503,352.22 503,352.22

2-3 years (3 years included) 141,481.50 141,481.50

Over 3 years 418,273.37 418,273.37

Total 2,031,423.43 4,321,059.83

(2) Top 5 account received in advance at Period-end

Relationship

Account Ratio in total account

Item with the Amount Nature

age received in advance (%)

company

Goods

Unrelated Over 3 y received

Zhengzhou Daming Kemao Co., Ltd. 404,013.70 19.89

party ears in

advance

Goods

Henan Xinming Electro car Sales Unrelated received

200,689.00 1-2 years 9.88

Co., Ltd. party in

advance

Unrelated Goods

Nanchang Ledao Industrial Co., Ltd. 200,462.80 1-2 years 9.87

party received

75

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

in

advance

Goods

Unrelated Within 1 received

Zhigao (Tianjin) Vehicles Co., Ltd 68,433.61 3.37

party year in

advance

Goods

Changzhou Wujin Legou Life Unrelated received

62,633.88 1-2 years 3.08

Shopping Co., Ltd. party in

advance

Total - 936,232.99 - 46.09 -

(3) Account received in advance with over one year book age

In RMB

Item Ending balance Reasons of un-paid or carry-over

Zhengzhou Daming Kemao Co., Ltd. 404,013.70

Henan Xinming Electro car Sales Co.,

200,689.00

Ltd.

Nanchang Ledao Industrial Co., Ltd. 200,462.80

Total 805,165.50 --

(4) Projects that settle without completed from construction contract at period-end

In RMB

Item Amount

Other explanation:

37. Wages payable

(1) Wages payable

In RMB

Increase during the Decrease during the

Item Opening balance Ending balance

period period

Short-term

770,985.97 3,001,725.32 3,130,963.44 641,747.85

compensation

Post-employment

benefit – defined - 226,101.91 226,101.91 -

contribution plan

76

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Total 770,985.97 3,227,827.23 3,357,065.35 641,747.85

(2) Short-term compensation

In RMB

Increase during the Decrease during the

Item Opening balance Ending balance

period period

1. Wages, bonuses, allowances

764,217.25 2,630,407.18 2,759,581.18 635,043.25

andsubsidies

3. Social insurance 91,473.54 91,473.54

Including: Medical

74,268.56 74,268.56

insurance

Work injury

3,773.80 3,773.80

insurance

Maternity

13,431.18 13,431.18

insurance

4. Housing accumulation

241,319.36 241,319.36

fund

5. Labor union

expenditure and

6,768.72 38,525.24 38,589.36 6,704.60

personnel education

expense

Total 770,985.97 3,001,725.32 3,130,963.44 641,747.85

(3) Defined contribution plans

In RMB

Increase during the

Item Opening balance Decreased Ending balance

period

1. Basic endowment

216,041.04 216,041.04

insurance

2. Unemployment

10,060.87 10,060.87

insurance

Total 226,101.91 226,101.91

Other explanation:

Nil

38. Tax payable

In RMB

Item Ending balance Opening balance

77

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Value-added tax 331,800.99 988,097.16

Enterprise income tax 506,828.92

Individual income tax 27,133.26 10,263.10

Urban maintenance and construction tax 11,817.23 11,499.17

House property tax 45,070.60 45,070.60

Educational surtax 3,622.00 3,394.82

Total 419,444.08 1,565,153.77

Other explanation:

Nil

39. Interest payable

In RMB

Item Ending balance Opening balance

Interest overdue without paid:

In RMB

Borrower Amount overdue Reasons

Total 0.00 --

Other explanation:

Nil

40. Dividends payable

In RMB

Item Ending balance Opening balance

Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:

Nil

41. Other payable

(1) Classification of other payable according to nature of account

In RMB

Item Ending balance Opening balance

With 1 year (including 1 year) 165,800.00 1,150,299.74

1-2 years 913,734.06 1,361,511.50

2-3 years 2,530,934.97 2,530,934.97

Over 3 years 15,345,541.11 15,354,541.11

78

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Total 18,956,010.14 20,397,287.32

(2) Significant other payable with over one year age

In RMB

Item Ending balance Reasons of un-paid or carry-over

Custodian and common benefit debts 9,511,005.85

Guosheng Energy 6,500,000.00 Interest-free loans

Total 16,011,005.85 --

Other explanation

Nil

42. Liability holding ready for sold

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

43. Non-current liability due within one year

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

44. Other current liability

In RMB

Item Ending balance Opening balance

Changes of short-term bond payable:

In RMB

Accrual Premium/

Face Release Bond Issuing Opening Issued in interest discount Paid in Ending

Bond

value date period amount balance the Period by face amortizati the Period balance

value on

Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Other explanation:

Nil

79

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

45. Long-term loans

(1) Classification of long-term loans

In RMB

Item Ending balance Opening balance

Explanation:

Nil

Other explanation, including interest rate section:

Nil

46. Bonds payable

(1) Bonds payable

In RMB

Item Ending balance Opening balance

(2) Changes of bonds payable (not including the other financial instrument of preferred stock and

perpetual capital securities that classify as financial liability)

In RMB

Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(3) Convertible conditions and time for shares transfer for the convertible bonds

Nil

(4) Other financial instruments classify as financial liability

Basic information of the outstanding preferred stock and perpetual capital securities at period-end

Nil

Changes of outstanding preferred stock and perpetual capital securities at period-end

In RMB

Outstanding Period-begin Increase during the period Decreased Period-end

financial

Amount Book value Amount Book value Amount Book value Amount Book value

instrument

Total 0 0.00 0 0.00 0 0.00 0 0.00

Basis for financial liability classification for other financial instrument

Nil

Other explanation

80

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Nil

47. Long-term account payable

(1) Listed by nature

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

48. Long-term employee payable

(1) Long-term employee payable

In RMB

Item Ending balance Opening balance

(2) Changes of defined benefit plans

Present value of the defined benefit plans:

In RMB

Item Current amount Last amount

Scheme assets:

In RMB

Item Current amount Last amount

Net liability (assts) of the defined benefit plans

In RMB

Item Current amount Last amount

Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:

Nil

Major actuarial assumption and sensitivity analysis:

Nil

Other explanation:

Nil

49. Special payable

In RMB

Item Opening balance Increase during the Decreased Ending balance Causes

81

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

period

Total 0.00 0.00 --

Other explanation:

Nil

50. Accrued liability

In RMB

Item Ending balance Opening balance Causes

Other explanation, including relevant important assumptions and estimation:

Nil

51. Deferred income

In RMB

Increase during the

Item Opening balance Decreased Ending balance Causes

period

Total 0.00 0.00 --

Item with government grants involved:

In RMB

Amount reckoned

New grants in the Assets-related/inc

Item Opening balance in non-operation Other changes Ending balance

Period ome related

revenue

Total 0.00 0.00 0.00 --

Other explanation:

Nil

52. Other non-current liability

In RMB

Item Ending balance Opening balance

Other explanation:

Nil

53. Share capital

In RMB

Changeduringtheperiod(+,-)

Opening

New shares Shares Ending balance

balance Bonus share Other Subtotal

issued transferred

82

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

from capital

reserve

Total shares 551,347,947.00 551,347,947.00

Other explanation:

54. Other equity instrument

(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end

Nil

(2) Changes of outstanding preferred stock and perpetual capital securities at period-end

In RMB

Outstanding Period-begin Increase during the period Decreased Period-end

financial

Amount Book value Amount Book value Amount Book value Amount Book value

instrument

Total 0 0 0.00 0 0.00 0

Changes of other equity instrument, change reasons and relevant accounting treatment basis:

Nil

Other explanation:

Nil

55. Capital reserve

In RMB

Increase during the

Item Opening balance Decreased Ending balance

period

Other capital reserve 627,834,297.85 627,834,297.85

1. Debt restructuring

482,580,588.23 482,580,588.23

income

2. Other 145,253,709.62 145,253,709.62

Total 627,834,297.85 0.00 0.00 627,834,297.85

Other explanation, including changes and reasons for changes:

Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment

by whole shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.

56. Treasury stock

In RMB

83

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Increase during the

Item Opening balance Decreased Ending balance

period

Total 0.00 0.00

Other explanation, including changes and reasons for changes:

Nil

57. Other comprehensive income

In RMB

Current amount

Less: written in

other

Account comprehensive

Opening Belong to Belong to Ending

Item before income in

balance Less : income parent minority balance

previous period

income tax in and carried tax expense company after shareholders

tax after tax

the period forward to gains

and losses in

current period

Total other comprehensive income 0.00 0.00 0.00

Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognization adjustment for

the arbitraged items:

Nil

58. Special reserves

In RMB

Increase during the

Item Opening balance Decreased Ending balance

period

Total 0.00 0.00

Other explanation, including changes and reasons for changes:

Nil

59. Surplus reserves

In RMB

Increase during the

Item Opening balance Decreased Ending balance

period

Statutory surplus reserve 32,673,227.01 32,673,227.01

Total 32,673,227.01 0.00 0.00 32,673,227.01

Other explanation, including changes and reasons for changes:

Nil

84

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

60. Retained profit

In RMB

Item Current period Last period

Retained profit at period-end before adjustment -1,197,486,788.28 -1,200,090,425.75

Retained profit at period-begin after adjustment -1,197,486,788.28 -1,200,090,425.75

Add: net profit attributable to shareholders of

-1,691,378.44 2,603,637.47

parent company for this year

Retained profit at period-end -1,199,178,166.72 -1,197,486,788.28

Adjustment for retained profit at period-begin:

1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit at

period-begin has 0.00 Yuan affected;

2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;

3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;

4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;

5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin

61. Operating income and operating cost

In RMB

Current amount Last amount

Item

Income Cost Income Cost

Main business 45,537,967.15 43,692,197.03 62,897,880.97 58,317,911.87

Other business 3,391,709.12 1,994,075.80 2,876,132.36 2,003,321.50

Total 48,929,676.27 45,686,272.83 65,774,013.33 60,321,233.37

62. Business tax and surcharge

In RMB

Item Current amount Last amount

Urban maintenance and construction tax 45,604.48 24,281.09

Educational surtax 32,574.63 17,077.44

Stamp tax 13,173.94

Business tax 29,766.86

Total 91,353.05 71,125.39

63. Sales expense

In RMB

85

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Item Current amount Last amount

Employee compensation 1,126,682.80 1,642,059.12

Development cost for new products 4,122.39 378,545.62

Market promotion costs 19,287.44 327,449.25

Rental property charges 180,047.47 324,646.28

Travel expenses 218,695.40 266,170.42

Net work sales costs 476,089.26

Other 443,777.11 289,311.67

Total 2,468,701.87 3,228,182.36

Other explanation:

Nil

64. Administration expense

In RMB

Item Current amount Last amount

Salary 2,079,149.94 1,310,472.25

Rental and property charges 702,602.38 592,893.94

Other 557,779.18 445,273.88

Total 3,339,531.50 2,348,640.07

Other explanation:

Nil

65. Financial expense

In RMB

Item Current amount Last amount

Interest income -213,713.97 -551,941.52

Commission charge etc. 12,149.06 7,415.97

Total -201,564.91 -544,525.55

Other explanation:

Nil

66. Loss from Assets depreciation

In RMB

Item Current amount Last amount

86

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

I. Bad debt losses -47,271.09 -24,888.28

Total -47,271.09 -24,888.28

Other explanation:

Nil

67. Changes in fair value gains

In RMB

Changes resources Current amount Last amount

Other explanation:

Nil

68. Investment income

In RMB

Item Current amount Last amount

Other explanation:

Nil

69. Other income

In RMB

Resources Current amount Last amount

70. Non-operation revenue

In RMB

Amount reckoned into

Item Current amount Last amount non-recurring gains/losses in

the period

Other 291,710.58 342,089.82 291,710.58

Total 291,710.58 342,089.82 291,710.58

Government grants reckoned into current gains/losses:

In RMB

Whether the

impact of

Whether Assets

Issuing subsidies on Amount of Amount of

Item Issuing cause Property type special related/Incom

subject the current this period last period

subsidies e related

profit and

loss

87

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Total -- -- -- -- -- 0.00 0.00 --

Other explanation:

Nil

71. Non-operating expenditure

In RMB

Amount reckoned into

Item Current amount Last amount non-recurring gains/losses in

the period

Other 1,509.00

Total 1,509.00 0.00

Other explanation:

Nil

72. Income tax expense

(1) Income tax expense

In RMB

Item Current amount Last amount

Current income tax 195,895.21

Deferred income tax 11,629.41

Total 11,629.41 195,895.21

(2) Adjustment on accounting profit and income tax expenses

In RMB

Item Current amount

Total profit -2,115,636.40

Impact of deductible temporary difference and deductible loss

11,629.41

for the deferred income tax recognized in previous year

income tax expenses 11,629.41

Other explanation

The income tax expenses: declined of the bad debt provision for deductible temporary difference last year, than the “deferred income

tax” decreased and “income tax – deferred income tax” increasd in the period

73. Other comprehensive income

Found more in Note 57.

88

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

74. Items of cash flow statement

(1) Other cash received in relation to operation activities

In RMB

Item Current amount Last amount

Interest and Rent and utilities etc. 1,603,116.82 1,626,821.50

Other Current money 721,181.20 2,057,230.85

Total 2,324,298.02 3,684,052.35

Explanation on other cash received in relation to operation activities:

Nil

(2) Other cash paid in relation to operation activities

In RMB

Item Current amount Last amount

Period expenses, operation costs and

5,580,059.48 4,991,881.79

common benefit debts paid

Total 5,580,059.48 4,991,881.79

Explanation on other cash paid in relation to operation activities:

Nil

(3) Cash received from other investment activities

In RMB

Item Current amount Last amount

Explanation on cash received from other investment activities:

Nil

(4) Cash paid related with investment activities

In RMB

Item Current amount Last amount

Explanation on cash paid related with investment activities

Nil

(5) Other cash received in relation to financing activities

In RMB

Item Current amount Last amount

89

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Explanation on other cash received in relation to financing activities:

Nil

(6) Cash paid related with financing activities

In RMB

Item Current amount Last amount

Explanation on cash paid related with financing activities:

Nil

75. Supplementary information to statement of cash flow

(1) Supplementary information to statement of cash flow

In RMB

Supplementary information This Period Last Period

1. Net profit adjusted to cash flow of

-- --

operation activities:

Net profit -2,127,265.81 518,931.58

Add: Assets impairment provision -47,271.09 -24,888.28

Depreciation of fixed assets, consumption

of oil assets and depreciation of productive 145,136.97 81,421.30

biology assets

Amortization of intangible assets 376,500.00 376,500.00

Financial expense(gain listed with “-”) -544,525.55

Decrease of deferred income tax

11,629.41

asset( (increase is listed with “-”)

Decrease of inventory (increase is listed

-2,966,733.68 -6,498,474.09

with “-”)

Decrease of operating receivable accounts

1,556,935.35 -11,317,496.10

(increase is listed with “-”)

Increase of operating payable accounts

-5,754,973.38 12,659,916.36

(decrease is listed with “-”)

Net cash flow arising from operating

-8,806,042.23 -4,748,614.78

activities

2. Material investment and financing not

-- --

involved in cash flow

3. Net change of cash and cash

-- --

equivalents:

90

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Balance of cash at period end 15,177,305.48 19,043,626.88

Less: Balance of cash at year-begin 24,015,287.71 26,752,065.66

Net increasing of cash and cash

-8,837,982.23 -7,708,438.78

equivalents

(2) Net cash paid for obtaining subsidiary in the Period

In RMB

Amount

Including: --

Including: --

Including: --

Other explanation:

Nil

(3) Net cash received by disposing subsidiary in the Period

In RMB

Amount

Including: --

Including: --

Including: --

Other explanation:

Nil

(4) Constitution of cash and cash equivalent:

In RMB

Item Ending balance Opening balance

Ⅰ. Cash 15,177,305.48 24,015,287.71

Including: Cash on hand 77,429.04 132,652.06

Bank deposit available for payment at

15,099,876.44 23,768,774.82

any time

Other monetary fund available for

113,860.83

payment at any time

Ⅲ. Balance of cash and cash equivalent at

15,177,305.48 24,015,287.71

period-end

Other explanation:

91

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Nil

76. Notes of changes of owners’ equity

Explain the name and adjusted amount in “Other” at end of last period:

Nil

77. Assets with ownership or use right restricted

In RMB

Item Ending book value Restriction reasons

Total 0.00 --

Other explanation:

Nil

78. Foreign currency monetary items

(1) Foreign currency monetary items

In RMB

Ending foreign currency Ending RMB balance

Item Convert rate

balance converted

HKD 1.53 0.8952 1.37

Other explanation:

Nil

(2) Explanation on foreign operational entity, including as for the major foreign operational entity,

disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping

currency changed, explain reasons

□ Applicable √ Not applicable

79. Hedging

Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative

information for the arbitrage risks:

Nil

80. Other

Nil

92

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

VIII. Changes of consolidation range

1. Enterprise combined under different control

(1) Enterprise combined under different control in the Period

In RMB

Income of Net profit of

Standard to

Time point Cost of Ratio of Acquired acquiree from acquiree from

Purchasing determine the

Acquiree for equity equity equity way Equity purchasing purchasing

date purchasing

obtained obtained obtained obtained way date to date to

date

period-end period-end

Other explanation:

Nil

(2) Combination cost and goodwill

In RMB

Combination cost

Determination method for fair value of the combination cost and contingent consideration and changes:

Nil

Main reasons for large goodwill resulted:

Nil

Other explanation:

Nil

(3) Identifiable assets and liability on purchasing date under the acquiree

In RMB

Fair value on purchasing date Book value on purchasing date

Determination method for fair value of the identifiable assets and liabilities:

Nil

Contingent liability of the acquiree bear during combination:

Nil

Other explanation:

Nil

(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date

Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in

93

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

the Period or not

□Yes √No

(5) On purchasing date or period-end of the combination, combination consideration or fair value of

identifiable assets and liability for the acquiree are un-able to confirm rationally

Nil

(6) Other explanation

Nil

2. Enterprise combined under the same control

(1) Enterprise combined under the same control in the Period

In RMB

Income of the Net profit of

combined the combined

Income of the Net profit of

party from party from

Basis of Standard to combined the combined

Equity ratio period-begin period-begin

combined Combination determine the party during party during

Acquiree obtained in of of

under the date combination the the

combination combination combination

same control date comparison comparison

to the to the

period period

combination combination

date date

Other explanation:

Nil

(2) Combination cost

Combination cost

Explanation on contingent consideration and its changes:

Nil

Other explanation:

Nil

(3) Assets and liability of the combined party on combination date

On purchasing date At end of last period

Contingent liability of the combined party bear during combination:

94

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Nil

Other explanation:

Nil

3. Counter purchase

Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listed

company and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction

Nil

4. Subsidiary disposal

Whether lost controlling rights while dispose subsidiary on one time or not

□ Yes √ No

Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not

□ 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

Nil

6. Other

During the reporting period, there is no change in the scope of consolidation.

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

Shenzhen

Emmelle Bicycle and spare

Shenzhen Shenzhen 70.00% Investment

Industrial Co., parts distribution

Ltd.

Explanation on share-holding ratio in subsidiary different from ratio of voting right:

Nil

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

Nil

95

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Controlling basis for the structuring entity included in consolidated range

Nil

Basis on determining to be an agent or consignor:

Nil

Other explanation:

Nil

(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

Shenzhen Emmelle

30.00% -435,887.37 2,477,240.10

Industrial Co., Ltd.

Explanation on share-holding ratio of minority different from ratio of voting right:

Nil

Other explanation:

Nil

(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

Shenzhe

n

Emmelle 37,636,1 839,021. 38,475,1 30,217,6 30,217,6 42,841,4 845,466. 43,686,9 33,976,5 33,976,5

0.00 0.00

Industria 39.70 27 60.97 93.96 93.96 78.93 81 45.74 20.84 20.84

l Co.,

Ltd.

In RMB

Current amount Last amount

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

Shenzhen 46,225,592.7 -1,452,957.89 -1,452,957.89 -9,054,161.55 63,060,684.1 235,250.98 235,250.98 -7,627,354.73

96

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Emmelle 7 3

Industrial

Co., Ltd.

Other explanation:

Nil

(4) Major restriction on using corporate assets and liquidate corporate debts

Nil

(5) Financial or other supporting provided to structuring entity that included in consolidated financial

statement

Nil

Other explanation:

Nil

2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights

(1) Owners equity shares changed in subsidiary

(2) Impact on minority’s interest and owners’ equity attributable to parent company

In RMB

Other explanation

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

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:

97

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(2) Main financial information of the important joint venture

Closing balance/current amount Opening balance /last period amount

Other explanation

(3) Main financial information of the important cooperative enterprise

Closing balance/current amount opening balance /last period amount

Other explanation

(4) Financial summary for un-important joint venture or cooperative enterprise

In RMB

Ending balance /Current amount Opening balance /Last amount

Joint venture -- --

Total numbers measured by share-holding

-- --

ratio

Cooperative enterprise -- --

Total numbers measured by share-holding

-- --

ratio

Other explanation

(5) Assets transfer ability has major restriction from joint venture or cooperative enterprise

(6) Excess losses from joint venture or cooperative enterprise

In RMB

Un-confirmed losses not

Cumulative un-confirmed Cumulative un-confirmed

Name recognized in the Period (or net

losses losses at period-end

profit enjoyed in the Period)

Other explanation

(7) Un-confirmed commitment with investment concerned with joint venture

(8) Contingent liability with investment concerned with joint venture or cooperative enterprise

4. Co-runs operation

Name Main operation place Registered place Business nature Share-holding ratio/ share enjoyed

98

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Directly Indirectly

Share-holding ratio or shares enjoyed different from voting right ratio:

If the co-runs entity is the separate entity, basis of the co-runs classification:

Other explanation

5. Equity in structuring entity that excluding in the consolidated financial statement

Relevant explanation:

6. Other

X. Risk related with financial instrument

The major financial instruments of the Company consist of monetary funds, trade receivables, other receivables, trade payables, other

payables, etc. details of these financial instruments are disclosed in the relevant notes. Risks relating to these financial instruments

and risk management policies adopted by the Company to minimize these risks are detailed as follows. Management of the Company

manages and monitors the risk exposures, to make sure they are under control.

1. Risk management targets and policies

The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk impact of operating

performance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, the

Company has established risk management policies to identify and analyze the risks faced by the Company, set adequate risk

acceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews these

policies and related internal control system to adapt to market development and change of operating activities of the Company. The

major risks arising from the Company’s financial instruments are credit risk and liquidity risk.

(1) Credit risk

Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation of

another party.

Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since the

bank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant credit

risk on bank deposits.

As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financial

position of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and sets

relevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum of

carrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed to

credit risks.

(2) Liquidity risk

Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash or

other financial assets.

When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by the

99

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

management, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Company

monitors application of bank borrowings to make sure it complies with relevant borrowing agreements.

2. Capital management

The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bring

shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.

In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.

The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30 June 2017, the

gearing ratio of the Company was 69.04% (31 December 2016: 68.05%)

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

(I) Financial assets

measured at fair value

and changes accounted 0.00

in the current profits

and losses

1. Transaction financial

0.00

assets

(1) Investment in debt

0.00

instruments

(2) Investment in equity

0.00

instruments

(3) Derivative financial

0.00

assets

2. Financial assets

appointed to measure at

fair value and changes 0.00

accounted in the current

profits and losses

(1) Investment in debt

0.00

instruments

100

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(2) Investment in equity

0.00

instruments

(II) Financial assets

0.00

available for sale

(1) Investment in debt

0.00

instruments

(2) Investment in equity

0.00

instruments

(3) Other 0.00

(III) Investment real

0.00

estate

1. Rental land use rights 0.00

2. Rental buildings 0.00

3. Land use rights

holding and preparing to 0.00

transfer after add value

(IV) Biological assets 0.00

1. Consumption

0.00

biological assets

2. Productive biological

0.00

assets

Total assets

continuously measured 0.00

by fair value

(V) Transaction

0.00

financial liabilities

Among them: issue of

0.00

transaction bonds

Derivative

0.00

financial liabilities

Other 0.00

(VI) Financial liabilities

appointed to measure at

fair value and changes 0.00

accounted in the current

profits and losses

Total liabilities

continuously measured 0.00

by fair value

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

II. Non-sustaining

-- -- -- --

measured by fair value

(I) Assets held for sale 0.00

Total assets

non-continuously 0.00

measured by fair value

Total liabilities

non-continuously 0.00

measured by fair value

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on

first-order

Nil

3. Valuation technique and qualitative and quantitative information on major parameters for the fair value

measure sustaining and non-persistent on second-order

Nil

4. Valuation technique and qualitative and quantitative information on major parameters for the fair value

measure sustaining and non-persistent on third-order

Nil

5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure

sustaining and non-persistent on third-order

Nil

6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for

conversion and policy for conversion time point

Nil

7. Changes of valuation technique in the Period

Nil

8. Financial assets and liability not measured by fair value

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

9. Other

Nil

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

We do not have parent company presently

Ultimate controlling party: Nil

Other explanation:

At the end of last year, the parent company of the Company, Shenzhen Guosheng Energy Investment & Development Co., Ltd.,

issued a document to the Company on February 20, 2017 to give up the status as the actual controller, this company held only

11.52% of the shares of the Company and could not control or govern the Company's personnel, finance, business and other matters,

and also did not participate in the Company's business operations, nor nominated members of the board. Up to the current reporting

period, Shenzhen Guosheng Energy Investment & Development Co., Ltd. is only the largest shareholder of the Company.

2. Subsidiary of the Enterprise

Found more in Note IX-1

3. Cooperative enterprise and joint venture

Found more in Note IX-3

Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious

period

Name Relationship

Other explanation

Nil

4. Other related party

Other related party Relationship with the Enterprise

Shenzhen Guosheng Energy Investment Development Co., Ltd. The largest shareholder

Other explanation

The Shenzhen Guosheng Energy Investment Development Co., Ltd. holds 11.52% equity of the Company, found more in 1. Parent

company in above mentioned

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

5. Related transaction

(1) Goods purchasing, labor service providing and receiving

Goods purchasing/labor service receiving

In RMB

Approved transaction Whether more than

Related party Content Current amount Last amount

amount the transaction amount

Goods sold/labor service providing

In RMB

Related party Content Current amount Last amount

Explanation on goods purchasing, labor service providing and receiving

Nil

(2) Related trusteeship/contract and delegated administration/outsourcing

Trusteeship/contract

In RMB

Income from

Client/ Entrusting party/ Yield pricing

Assets type Starting date Maturity date trusteeship/contra

contract-out party contractor basis

ct

Explanation on related trusteeship/contract

Nil

Delegated administration/outsourcing

In RMB

Pricing basis of trustee

Client/

Entrusting party/ trustee fee/outsourcing

contract-out Assets type Starting date Maturity date

contractor fee/outsourcing fee recognized in

party

fee the Period

Explanation on related administration/outsourcing

Nil

(3) Related lease

As a lessor for the Company:

In RMB

Lease income in recognized in Lease income in recognized last

Lessee Assets type

the Period the Period

As a lessee for the Company:

In RMB

104

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Lease income in recognized in Lease income in recognized last

Lessor Assets type

the Period the Period

Explanation on related lease

Nil

(4) Related guarantee

As a guarantor for the Company

In RMB

Guarantee completed

Secured party Amount guarantee Starting date Maturity date

(Y/N)

As a secured party for the Company

In RMB

Guarantee completed

Guarantor Amount guarantee Starting date Maturity date

(Y/N)

Explanation on related guarantee

Nil

(5) Borrowed funds of related party

In RMB

Related party Borrowed funds Starting date Maturity date Note

Borrowing

Lending

(6) Assets transfer and debt restructuring of related party

In RMB

Related party Transaction content Current amount Last amount

(7) Remuneration of key manager

In RMB

Item Current amount Last amount

Remuneration of key manager 1,091,420.00 732,061.00

(8) Other related transactions

Nil

105

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

6. Receivable/payable items of related parties

(1) Receivable item

In RMB

Ending balance Opening balance

Item Related party

Book balance Bad debt provision Book balance Bad debt provision

(2) Payable item

In RMB

Item Related party Ending book balance Opening book balance

Shenzhen Guosheng Energy

Other account payable Investment Development Co., 6,500,000.00 6,500,000.00

Ltd.

7. Commitments of related party

Nil

8. Other

Nil

XIII. Share-based payment

1. General 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

4. Revised and termination on share-based payment

Nil

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深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

5. Other

Nil

XIV. Commitment or contingency

1. Important commitments

Important commitments in balance sheet date

Nil

2. Contingency

(1) Contingency on balance sheet date

Nil

(2) For the important contingency not necessary to disclosed by the Company, explained reasons

The Company has no important contingency that need to disclosed.

3. Other

Nil

XV. Events after balance sheet date

1. Important non-adjustment items

In RMB

Impact on financial status and Reasons on un-able to estimated

Item Content

operation results the impact number

2. Profit distribution

In RMB

3. Sales return

Nil

4. Other events after balance sheet date

On June 19, 2017, the company convened the second extraordinary general meeting of shareholders in 2017 which approved the

proposal on this non-public offering of shares. Pursuant to the subscription agreement for the non-public offering of shares, the four

107

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

subscribers should respectively pay 1% of the total amount of the subscription to the Company within 30 working days from the date

of approval by the shareholders' general meeting as the performance bond. The Company has received the performance bond of RMB

8 million from the four subscribers after the balance sheet date.

XVI. Other important events

1. Previous accounting errors collection

(1) Retrospective restatement

In RMB

Impact items of statement

Content Treatment procedures Cumulative impacted number

during a comparison

(2) Prospective application

Reasons for prospective application

Accounting error correction Approval procedures

adopted

2. Debt restructuring

Nil

3. Assets replacement

(1) Non-monetary assets change

Nil

(2) Other assets replacement

Nil

4. Pension plan

Nil

5. Discontinued operations

In RMB

Discontinued

Income tax operations profit

Item Revenue Expenses Total profit Net profit

expenses attributable to

owners of parent

108

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

company

Other explanation

Nil

6. Segment

(1) Recognition basis and accounting policy for reportable segment

Nil

(2) Financial information for reportable segment

In RMB

Item Offset between segments Total

(3) The company has no reportable segments, or unable to disclose total assts and total liability for

reportable segments, explain reasons

Nil

(4) Other explanation

Nil

7. Major transaction and events makes influence on investor’s decision

Nil

8. Other

1. Instructions for continuing operations

On 11th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and

Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company

couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court

ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil

ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012

according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and

Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. Subsequently, Shenzhen Municipal

Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company

to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the

Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the

reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)

Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed

109

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

down.

The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is

able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination

party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.

The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,

the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company

doesn’t have the recombination party at the moment.

2. Proposed non-public issue of shares for purpose of assets acquisition in 2016

In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire material assets. The

Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board of the Company. Based on the due diligence,

audit, assessment and business negation with intermediates, taking into account the conditions of capital market and actual conditions

of the Company, the Board of the Company considered and approved the Proposal Relating to Adjusting the Plan of non-public of A

Shares and the Plan on Non-public Issue of A shares in 2016 (amended) in February 2017. According to the amended plan, the total

proceeds to be raised from this non-public issue are estimated not to exceed RMB 0.8 billion after deduction of issuance expense.

Among which, RMB 660 million is planned to be used in the “online and offline marketing network platform construction and

upgrading project”, and RMB 140 million is planned to be used in the “R & D center construction project”. For additional details,

please refer to the announcement issued by the Board on behalf of the Company. On June 19, 2017, the company convened the

second extraordinary general meeting of shareholders in 2017 which approved the aforesaid proposal on non-public offering of

shares.

As of the date the finacnial statement reported, the above said non-public offering should be approved in CSRC

XVII. Principle notes of financial statements of parent company

1. Accounts receivable

(1) Category

In RMB

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Types Book

Accrual Accrual Book value

Amount Ratio Amount value Amount Ratio Amount

ratio ratio

Total 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%

Receivable with single significant amount and withdrawal bad debt provision separately at end of period:

□ Applicable √ Not applicable

In combination, accounts receivable whose bad debts provision was accrued by age analysis:

□ Applicable √ Not applicable

In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:

□ Applicable √ Not applicable

In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:

Nil

110

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(2) Bad debt provision accrual, collected or reversed

Accrual bad debt provision 0.00 Yuan; collected or reversed 0.00 Yuan.

Major bad debt provision reversal or collected in the Period

In RMB

Company Amount reversal or collected Collection way

Total 0.00 --

Nil

(3) Receivables actually written-off during the reporting period

In RMB

Item Amount written off

Written-off for the major receivable

In RMB

Nature of Procedures Arising from related

Company Amount written off Reason for write-off

receivables implemented transactions

Total -- 0.00 -- -- --

Explanation for write-off of receivables

Nil

(4) Top 5 receivables at ending balance by arrears party

Nil

(5) Receivable derecognition due to transfer of financial assets

Nil

(6) Assets and liability resulted by receivable transfer and continuous involvement

Nil

Other explanation:

Nil

2. Other accounts receivable

(1) Classification

In RMB

Type Ending balance Opening balance

111

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Book balance Bad debt provision Book balance Bad debt provision

Book

Accrual Accrual Book value

Amount Ratio Amount value Amount Ratio Amount

ratio ratio

Other account

receivable with

single major amount 6,785,03 6,785,035 9,113,6 9,113,689.7

96.43% 97.32%

and withdrawal bad 5.19 .19 89.74 4

debt provision for

single item

Other receivables

with bad debt 251,350. 250,596.5 251,150

3.57% 753.45 0.30% 2.68% 753.45 0.30% 250,396.55

provision accrual by 00 5 .00

credit portfolio

7,036,38 7,035,631 9,364,8 9,364,086.2

Total 100.00% 753.45 0.01% 100.00% 753.45 0.01%

5.19 .74 39.74 9

Other receivable with single significant amount and withdrawal bad debt provision separately at end of period

√ Applicable □ Not applicable

In RMB

Closing balance

Other receivables (unit)

Other receivables Provision for bad debt Accrue ratio Accrue reason

Shenzhen Emmelle 子公司往来款合并报

6,785,035.19 0.00 0.00%

Industrial Co., Ltd. 表抵消项目

Total 6,785,035.19 -- --

In combination, other accounts receivable whose bad debts provision was accrued by age analysis

√ Applicable □ Not applicable

In RMB

Ending balance

Age

Other receivable bad debts provision Accrual ratio

Within one year

Within one year 68,588.00 205.16 0.30%

Subtotal of within one year 68,588.00 205.16 0.30%

1-2 year 182,762.00 548.29 0.30%

Total 251,350.00 753.45 0.30%

Explanations on combination determine:

Nil

In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable

□ Applicable √ Not applicable

In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable

112

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

□ Applicable √ Not applicable

(2) Bad debt provision accrual, collected or reversed

Accrual bad debt provision 0 Yuan; collected or reversed 0 Yuan.

Major bad debt provision reversal or collected in the Period

In RMB

Company Amount reversal or collected Collection way

Total 0.00 --

Nil

(3) Other receivables actually written-off during the reporting period

In RMB

Item Amount written off

Written-off for the major other receivable:

In RMB

Nature of other Procedures Arising from related

Company Amount written off Reason for write-off

receivables implemented transactions

Total -- 0.00 -- -- --

Explanation for write-off of other receivables:

Nil

(4) Other receivables by nature

In RMB

Nature Ending book balance Opening book balance

Current money 6,785,035.19 9,113,689.74

Margin or deposit 239,950.00 239,750.00

Equipment amount 11,400.00 11,400.00

Total 7,036,385.19 9,364,839.74

(5) Top 5 other receivables at ending balance by arrears party

In RMB

Ratio in total

Ending balance of

Company Nature Ending balance Book age ending balance of

bad bet provision

other receivables

Shenzhen Emmelle Current money 6,785,035.19 Within one year 96.43% 0.00

113

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Industrial Co., Ltd.

Shenzhen Materials

Margin or deposit 135,723.00 0-2 year 1.93% 407.17

Group Co., Ltd.

Shenzhen

Anjingheng Margin or deposit 90,100.00 1-2 year 1.28% 270.30

Industrial Co. Ltd.

Shenzhen

Baifanghe Property Margin or deposit 13,627.00 1-2 year 0.19% 40.88

Co., Ltd.

Shenzhen

Hongkang

Equipment

Instrument 11,400.00 1-2 year 0.16% 34.20

amount

Technology Co.,

Ltd.

Total -- 7,035,885.19 -- 99.99% 752.55

(6) Account receivable with government subsidy involved

In RMB

Time, amount and basis

Company Item Ending balance Ending book age

for money collected

Total -- 0.00 -- --

Nil

(7) Other receivable derecognition due to transfer of financial assets

Nil

(8) Assets and liability resulted by other receivable transfer and continuous involvement

Nil

Other explanation:

Nil

3. Long-term equity investment

In RMB

Ending balance Opening balance

Item

Book balance Impairment Book value Book balance Impairment Book value

Investment for

1,400,000.00 1,389,620.27 10,379.73 1,400,000.00 1,389,620.27 10,379.73

subsidiary

114

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Total 1,400,000.00 1,389,620.27 10,379.73 1,400,000.00 1,389,620.27 10,379.73

(1) Investment for subsidiary

In RMB

Ending balance of

Impairment

The invested entity Opening balance Increased Decreased Ending balance impairment

accrual

provision

Shenzhen

Emmelle Industrial 1,400,000.00 0.00 0.00 1,400,000.00 0.00 1,389,620.27

Co., Ltd.

Total 1,400,000.00 0.00 0.00 1,400,000.00 0.00 1,389,620.27

(2) Investment for associates and joint venture

In RMB

+,-

Ending

Other Cash

Investme balance

Additiona comprehe dividend

Opening nt gains Other Ending of

Company l Capital nsive or profit Impairme

balance recognize equity Other balance impairme

investmen reduction income announce nt accrual

d under change nt

t adjustmen d to

equity provision

t issued

I. Joint venture

Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

II. Associated enterprise

Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(3) Other explanation

Nil

4. Operating income and cost

In RMB

Current amount Last amount

Item

Income Cost Income Cost

Other business 3,228,905.96 1,994,075.80 3,476,770.26 2,092,043.56

Total 3,228,905.96 1,994,075.80 3,476,770.26 2,092,043.56

Other explanation:

115

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Nil

5. Investment gains

In RMB

Item Current amount Last amount

6. Other

Supplementary information to statement of cash flow

Item This Period Last Period

I. Net profit adjusted to cash flow of operation activities:

Net profit -674,307.92 283,680.60

Add: Assets impairment provision - -

Depreciation of fixed assets, consumption of oil assets and

118,380.84 53,177.68

depreciation of productive biology assets

Amortization of intangible assets 376,500.00 376,500.00

Amortization of long-term deferred expenses - -

Loss from disposal of fixed assets, intangible assets and

- -

other long-term assets(gain is listed with “-”)

Loss of disposing fixed assets(gain is listed with “-”) - -

Loss from change of fair value (gain is listed with “-”) - -

Financial expenses (gain is listed with “-”) - -

Investment loss (gain is listed with “-”) - -

Decrease of deferred income tax asset( (increase is listed

- -

with “-”)

Increase of deferred income tax liability (decrease is listed

- -

with “-”)

Decrease of inventory (increase is listed with “-”) - -

Decrease of operating receivable accounts (increase is listed

2,003,606.92 2,435,690.70

with “-”)

Increase of operating payable accounts (decrease is listed

-1,576,060.52 -270,309.03

with “-”)

Other -

Net cash flow arising from operating activities 248,119.32 2,878,739.95

II. Material investment and financing not involved in cash

flow:

116

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Item This Period Last Period

Conversion of debt into capital - -

Switching Company bonds due within one year - -

Financing lease of fixed assets - -

III. Net change of cash and cash equivalents: - -

Balance of cash at period end 1,391,537.61 1,118,850.04

Less: Balance of cash at period -begin 1,143,418.29 1,199,934.09

Add: Balance of cash equivalent at period-end - -

Less: Balance of cash equivalent at period-begin - -

Net increasing of cash and cash equivalents 248,119.32 -81,084.05

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 (RMB/Share)

(RMB/Share)

Net profits belong to common stock

-12.51% -0.0031 -0.0031

stockholders of the Company

Net profits belong to common stock

stockholders of the Company after

-14.07% -0.0035 -0.0035

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

117

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

(3) Explain accounting difference over the accounting rules in and out of China; as for the difference

adjustment for data audited by foreign auditing organ, noted the name of such foreign organ

Nil

4. Other

Nil

118

深圳中华自行车(集团)股份有限公司 2017 年半年度财务报告

Section XI. Documents available for reference

1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person in

charge of accounting organ.

2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC in the

report period.

3. English version of the Semi-Annual Report 2017.

119

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