深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Shenzhen Tellus Holding Co., Ltd.
Financial Report
Semi-Annual 2017
(Un-audited)
August 2017
1
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shen Zhen Tellus Holding Co., Ltd
2017-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 153,232,791.88 218,497,640.10
Settlement provisions
Capital lent
Financial assets measured by
fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 2,221,154.93 113,736.64
Accounts paid in advance 8,771,027.57 8,436,668.35
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable 118,000.00 172,055.56
Dividend receivable
Other receivables 17,508,786.88 16,586,387.45
Purchase restituted finance
asset
Inventories 7,989,799.13 11,038,915.69
Divided into assets held for
sale
Non-current asset due within
one year
Other current assets 185,823,991.93 90,123,901.32
Total current assets 375,665,552.32 344,969,305.11
Non-current assets:
Loans and payments on
behalf
Finance asset available for
10,176,617.20 10,478,985.77
sales
Held-to-maturity investment
Long-term account
receivable
Long-term equity investment 198,496,585.91 203,633,308.06
Investment property 75,475,007.05 77,602,248.53
Fixed assets 124,060,216.94 129,226,236.16
2
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Construction in progress 354,723,231.16 343,365,313.46
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 53,042,802.82 53,739,118.72
Expense on Research and
Development
Goodwill
Long-term expenses to be
1,845,342.27 1,437,761.31
apportioned
Deferred income tax asset 24,413,500.01 24,448,797.86
Other non-current asset 100,000.00 100,000.00
Total non-current asset 842,333,303.36 844,031,769.87
Total assets 1,217,998,855.68 1,189,001,074.98
Current liabilities:
Short-term loans 50,000,000.00 50,000,000.00
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
Derivative financial liability
Notes payable
Accounts payable 22,195,793.29 23,599,227.33
Accounts received in
11,203,114.07 11,930,493.02
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 23,210,374.12 27,144,631.18
Taxes payable 9,340,563.46 10,081,678.60
Interest payable 94,347.00 77,826.33
Dividend payable
Other accounts payable 114,778,401.19 126,045,854.54
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 230,822,593.13 248,879,711.00
Non-current liabilities:
3
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Long-term loans 27,600,000.00 12,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable 3,920,160.36 3,920,160.36
Long-term wages payable
Special accounts payable
Accrual liabilities 434,487.74 1,192,618.90
Deferred income
Deferred income tax
110,024.04 232,711.06
liabilities
Other non-current liabilities 14,468,198.45 14,239,537.48
Total non-current liabilities 46,532,870.59 31,585,027.80
Total liabilities 277,355,463.72 280,464,738.80
Owner’s equity:
Share capital 297,281,600.00 297,281,600.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 565,226,274.51 564,192,605.51
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 2,952,586.32 2,952,586.32
Provision of general risk
Retained profit 55,532,728.21 30,935,823.12
Total owner’s equity attributable
920,993,189.04 895,362,614.95
to parent company
Minority interests 19,650,202.92 13,173,721.23
Total owner’s equity 940,643,391.96 908,536,336.18
Total liabilities and owner’s
1,217,998,855.68 1,189,001,074.98
equity
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 105,697,579.64 150,800,890.39
Financial assets measured by
fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable
4
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Account paid in advance 21,000.00 32,280.00
Interest receivable 118,000.00 172,055.56
Dividends receivable
Other receivables 98,341,250.33 98,999,650.03
Inventories
Divided into assets held for
sale
Non-current assets maturing
within one year
Other current assets 170,000,000.00 90,000,000.00
Total current assets 374,177,829.97 340,004,875.98
Non-current assets:
Available-for-sale financial
10,176,617.20 10,176,617.20
assets
Held-to-maturity investments
Long-term receivables
Long-term equity
680,829,138.92 686,225,666.43
investments
Investment real estate 48,298,436.85 49,847,406.09
Fixed assets 16,063,024.44 16,497,899.89
Construction in progress 911,072.59 373,191.69
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 411,230.25 484,538.73
Research and development
costs
Goodwill
Long-term deferred expenses 256,747.22 239,924.49
Deferred income tax assets 13,888,782.94 13,908,254.04
Other non-current assets
Total non-current assets 770,835,050.41 777,753,498.56
Total assets 1,145,012,880.38 1,117,758,374.54
Current liabilities:
Short-term borrowings 50,000,000.00 50,000,000.00
Financial liability measured
by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable
Accounts payable
Accounts received in
2,523,809.60
advance
Wage payable 6,578,609.50 7,713,651.26
5
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Taxes payable 1,623,330.66 524,089.23
Interest payable 54,375.00 66,458.33
Dividend payable
Other accounts payable 252,122,572.01 253,475,259.99
Divided into liability held for
sale
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 312,902,696.77 311,779,458.81
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
Accrual liabilities
Deferred income
Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 312,902,696.77 311,779,458.81
Owners’ equity:
Share capita 297,281,600.00 297,281,600.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 562,032,851.23 560,999,182.23
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 2,952,586.32 2,952,586.32
Retained profit -30,156,853.94 -55,254,452.82
Total owner’s equity 832,110,183.61 805,978,915.73
Total liabilities and owner’s
1,145,012,880.38 1,117,758,374.54
equity
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 160,984,104.56 157,147,166.48
6
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Including: Operating income 160,984,104.56 157,147,166.48
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 146,908,206.30 143,719,895.22
Including: Operating cost 118,024,813.96 112,822,380.88
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
Tax and extras 2,810,925.76 2,403,726.21
Sales expenses 6,883,605.25 7,399,760.23
Administration expenses 19,352,021.76 20,805,027.12
Financial expenses 26,460.54 289,000.78
Losses of devaluation of asset -189,620.97
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
9,636,578.24 5,100,570.96
listed with “-”)
Including: Investment
income on affiliated company and 2,929,608.85 2,808,781.91
joint venture
Exchange income (Loss
is listed with “-”)
Other income
III. Operating profit (Loss is
23,712,476.50 18,527,842.22
listed with “-”)
Add: Non-operating income 319,517.17 45,280.90
Including: Disposal gains
58,186.00 28,104.37
of non-current asset
Less: Non-operating expense 6,919.80 5,764.84
Including: Disposal loss
6,919.80 1,237.84
of non-current asset
IV. Total Profit (Loss is listed
24,025,073.87 18,567,358.28
with “-”)
Less: Income tax expense 623,687.09 597,869.12
V. Net profit (Net loss is listed with
23,401,386.78 17,969,489.16
“-”)
Net profit attributable to 24,596,905.09 17,747,952.63
7
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
owner’s of parent company
Minority shareholders’ gains and
-1,195,518.31 221,536.53
losses
VI. Net after-tax of other
comprehensive income
Net after-tax of other
comprehensive income attributable
to owners of parent company
(I) Other comprehensive
income items which will not be
reclassified subsequently to profit
of loss
1. Changes as a result
of re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using equity
method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive
income items which will be
reclassified subsequently to profit
or loss
1. Share of the other
comprehensive income of the
investee accounted for using equity
method which 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
8
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Net after-tax of other
comprehensive income attributable
to minority shareholders
VII. Total comprehensive income 23,401,386.78 17,969,489.16
Total comprehensive income
attributable to owners of parent 24,596,905.09 17,747,952.63
Company
Total comprehensive income
attributable to minority -1,195,518.31 221,536.53
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0827 0.0597
(ii) Diluted earnings per
0.0827 0.0597
share
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 21,455,828.43 21,654,258.03
Less: Operating cost 1,800,520.02 1,787,004.39
Tax and extras 852,504.05 794,738.55
Sales expenses
Administration
8,630,924.30 9,195,278.67
expenses
Financial expenses -315,599.87 53,700.38
Losses of devaluation of
-189,620.97
asset
Add: Changing income of
fair value(Loss is listed with “-”)
Investment income (Loss
14,439,969.08 4,753,088.69
is listed with “-”)
Including: Investment
income on affiliated company and 5,721,803.49 2,579,910.59
joint venture
Other income
II. Operating profit (Loss is
25,117,069.98 14,576,624.73
listed with “-”)
Add: Non-operating income 0.01
Including: Disposal
gains of non-current asset
Less: Non-operating expense
Including: Disposal loss
of non-current asset
III. Total Profit (Loss is listed
25,117,069.98 14,576,624.74
with “-”)
9
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Less: Income tax expense 19,471.10 19,471.10
IV. Net profit (Net loss is listed
25,097,598.88 14,557,153.64
with “-”)
V. Net after-tax of other
comprehensive income
(I) Other comprehensive
income items which will not be
reclassified subsequently to profit
of loss
1. Changes as a result
of re-measurement of net defined
benefit plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using
equity method which will not be
reclassified subsequently to profit
and loss
(II) Other comprehensive
income items which will be
reclassified subsequently to profit
or loss
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 25,097,598.88 14,557,153.64
10
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
VII. Earnings per share:
(i) Basic earnings per share 0.0844 0.0490
(ii) Diluted earnings per
0.0844 0.0490
share
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 172,205,464.81 158,112,964.06
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from original
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
17,681,721.14 22,370,091.90
concerning operating activities
Subtotal of cash inflow arising
189,887,185.95 180,483,055.96
from operating activities
Cash paid for purchasing
commodities and receiving labor 100,485,791.06 88,512,297.28
service
11
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
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
30,466,874.43 29,272,522.61
workers
Taxes paid 12,522,480.67 13,224,238.25
Other cash paid concerning
39,031,478.39 25,502,491.46
operating activities
Subtotal of cash outflow arising
182,506,624.55 156,511,549.60
from operating activities
Net cash flows arising from
7,380,561.40 23,971,506.36
operating activities
II. Cash flows arising from
investing activities:
Cash received from
237,000,000.00 165,500,000.00
recovering investment
Cash received from
10,890,968.34 8,591,789.05
investment income
Net cash received from
disposal of fixed, intangible and 272,340.00
other long-term assets
Net cash received from
disposal of subsidiaries and other 2,343,240.90
units
Other cash received
concerning investing activities
Subtotal of cash inflow from
250,506,549.24 174,091,789.05
investing activities
Cash paid for purchasing
fixed, intangible and other 12,861,466.12 38,970,948.42
long-term assets
Cash paid for investment 322,000,000.00 110,800,000.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
obtained
Other cash paid concerning
investing activities
12
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Subtotal of cash outflow from
334,861,466.12 149,770,948.42
investing activities
Net cash flows arising from
-84,354,916.88 24,320,840.63
investing activities
III. Cash flows arising from
financing activities
Cash received from
7,672,000.00
absorbing investment
Including: Cash received
from absorbing minority
7,672,000.00
shareholders’ investment by
subsidiaries
Cash received from loans 15,600,000.00
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow from
23,272,000.00
financing activities
Cash paid for settling debts
Cash paid for dividend and
profit distributing or interest 1,562,339.36 16,495,591.67
paying
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
1,562,339.36 16,495,591.67
financing activities
Net cash flows arising from
21,709,660.64 -16,495,591.67
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -153.38 126.81
exchange rate
V. Net increase of cash and cash
-55,264,848.22 31,796,882.13
equivalents
Add: Balance of cash and
cash equivalents at the period 178,497,640.10 159,184,710.93
-begin
VI. Balance of cash and cash
123,232,791.88 190,981,593.06
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
13
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 32,112,173.50 30,405,761.68
services
Write-back of tax received
Other cash received
4,567,298.11 24,198,098.94
concerning operating activities
Subtotal of cash inflow arising
36,679,471.61 54,603,860.62
from operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
8,371,531.53 7,686,514.98
workers
Taxes paid 1,808,421.17 1,923,502.73
Other cash paid concerning
11,123,303.80 23,114,646.01
operating activities
Subtotal of cash outflow arising
21,303,256.50 32,724,663.72
from operating activities
Net cash flows arising from
15,376,215.11 21,879,196.90
operating activities
II. Cash flows arising from
investing activities:
Cash received from
220,000,000.00 135,000,000.00
recovering investment
Cash received from
10,718,165.59 8,473,178.10
investment income
Net cash received from
disposal of fixed, intangible and
other long-term assets
Net cash received from
disposal of subsidiaries and other 14,150,000.00
units
Other cash received
concerning investing activities
Subtotal of cash inflow from
244,868,165.59 143,473,178.10
investing activities
Cash paid for purchasing
fixed, intangible and other 250,108.10 205,838.02
long-term assets
Cash paid for investment 293,998,000.00 100,000,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from 294,248,108.10 100,205,838.02
14
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
investing activities
Net cash flows arising from
-49,379,942.51 43,267,340.08
investing 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 1,099,583.35 16,495,591.67
paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
1,099,583.35 16,495,591.67
financing activities
Net cash flows arising from
-1,099,583.35 -16,495,591.67
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-35,103,310.75 48,650,945.31
equivalents
Add: Balance of cash and
cash equivalents at the period 110,800,890.39 80,301,551.68
-begin
VI. Balance of cash and cash
75,697,579.64 128,952,496.99
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
Current period
Owners’ equity attributable to parent company
Other equity Other
instrument Less: compr Provisi Minori Total
Item Share Reaso Surplu Retain ty owner
Perp Capital Invent ehensi on of
capita Prefe nable s ed interes s’
etual Othe reserve ory ve genera
l rred reserve reserve profit ts equity
capit r shares incom l risk
stock
al e
15
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
secur
ities
I. Balance at the 297,2 564,19 30,935 13,173 908,53
2,952,
end of the last 81,60 2,605. ,823.1 ,721.2 6,336.
586.32
year 0.00 51 2 3 18
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. Balance at 297,2 564,19 30,935 13,173 908,53
2,952,
the beginning of 81,60 2,605. ,823.1 ,721.2 6,336.
586.32
this year 0.00 51 2 3 18
III. Increase/
Decrease in this 24,596 32,107
1,033, 6,476,
year (Decrease ,905.0 ,055.7
669.00 481.69
is listed with 9 8
“-”)
(i) Total 24,596 23,401
-1,195,
comprehensive ,905.0 ,386.7
518.31
income 9 8
(ii) Owners’
devoted and 7,672, 7,672,
decreased 000.00 000.00
capital
1.Common
7,672, 7,672,
shares invested
000.00 000.00
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
16
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
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
1,033, 1,033,
(VI)Others
669.00 669.00
IV. Balance at 297,2 565,22 55,532 19,650 940,64
2,952,
the end of the 81,60 6,274. ,728.2 ,202.9 3,391.
586.32
report period 0.00 51 1 2 96
Last Period
In RMB
Last Period
Owners’ equity attributable to parent company
Other equity
Other
instrument Minori Total
Less: compr Provisi
Item Share Perp Reaso Surplu Retain ty owner
Capital Invent ehensi on of
capita Prefe etual nable s ed interes s’
Othe reserve ory ve genera
l rred capit reserve reserve profit ts equity
r shares incom l risk
stock al
e
secur
17
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
ities
I. Balance at the 297,2 564,19 10,419 878,58
2,952, 3,742,
end of the last 81,60 2,605. ,351.3 8,403.
586.32 260.49
year 0.00 51 2 64
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. Balance at 297,2 564,19 10,419 878,58
2,952, 3,742,
the beginning of 81,60 2,605. ,351.3 8,403.
586.32 260.49
this year 0.00 51 2 64
III. Increase/
Decrease in this 17,747 17,969
221,53
year (Decrease ,952.6 ,489.1
6.53
is listed with 3 6
“-”)
(i) Total 17,747 17,969
221,53
comprehensive ,952.6 ,489.1
6.53
income 3 6
(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
18
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
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 297,2 564,19 21,490 10,640 896,55
2,952,
the end of the 81,60 2,605. ,213.1 ,887.8 7,892.
586.32
report period 0.00 51 2 5 80
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
Current period
Other equity
instrument
Other
Perpet Less: Reasona Retain Total
Item Share Capital compreh Surplus
Preferr ual Inventor ble ed owners’
capital reserve ensive reserve
ed capital Other y shares reserve profit equity
income
stock securit
ies
19
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
I. Balance at the 297,28 -55,25
560,999, 2,952,58 805,978
end of the last 1,600.0 4,452.
182.23 6.32 ,915.73
year 0 82
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 297,28 -55,25
560,999, 2,952,58 805,978
the beginning of 1,600.0 4,452.
182.23 6.32 ,915.73
this year 0 82
III. Increase/
Decrease in this 25,097
1,033,66 26,131,
year (Decrease ,598.8
9.00 267.88
is listed with 8
“-”)
(i) Total 25,097
25,097,
comprehensive ,598.8
598.88
income 8
(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
20
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
(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
1,033,66 1,033,6
(VI)Others
9.00 69.00
IV. Balance at 297,28 -30,15
562,032, 2,952,58 832,110
the end of the 1,600.0 6,853.
851.23 6.32 ,183.61
report period 0 94
Last period
In RMB
Last period
Other equity
instrument
Other
Perpet Less: Reasona Retain Total
Item Share Capital compreh Surplus
Preferr ual Inventor ble ed owners’
capital reserve ensive reserve
ed capital Other y shares reserve profit equity
income
stock securit
ies
I. Balance at the 297,28 -91,38
560,999, 2,952,58 769,844
end of the last 1,600.0 8,913.
182.23 6.32 ,455.14
year 0 41
Add:
Changes of
accounting
policy
Error
correction of
the last period
21
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
Other
II. Balance at 297,28 -91,38
560,999, 2,952,58 769,844
the beginning of 1,600.0 8,913.
182.23 6.32 ,455.14
this year 0 41
III. Increase/
Decrease in this 14,557
14,557,
year (Decrease ,153.6
153.64
is listed with 4
“-”)
(i) Total 14,557
14,557,
comprehensive ,153.6
153.64
income 4
(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
22
深圳市特力(集团)股份有限公司 2017 年半年度财务报告
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 297,28 -76,83
560,999, 2,952,58 784,401
the end of the 1,600.0 1,759.
182.23 6.32 ,608.78
report period 0 77
Legal Representative: Lv Hang Person in charge of Accounting Works:Yang Jianping
Person in charge of Accounting Institution: Liu Yuhong
23
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Shenzhen Tellus Holding Co., Ltd.
Notes to Financial Statements of Semi-annual Report 2017
(The unit is RMB unless otherwise specified)
I. Company profiles
1. Company profile
Chinese name of the Company: 深圳市特力(集团)股份有限公司
Foreign name of the Company: Shenzhen Tellus Holding Co.,Ltd
Registered address of the Company: 3/F, Tellus Building, Shuibei 2nd Road, Luohu District, Shenzhen,
Guangdong Province.
Office address of the Company: 15/F, Zhonghe Building, Shennan Middle Road, Futian District,
Shenzhen
Stock exchange for listing: Shenzhen Stock Exchange
Short form of the stock and Stock code: Tellus-A(000025),Tellus-B(200025)
Registered capital: RMB 297,280,000.00
Legal representative: Lv Hang
Unified social credit code: 91440300192192210U
2. Business nature, operating scope and major products and services of the Company
Business nature: wholesale industry of energy, materials and machinery electronic equipments.
Operating scope: mainly engaged in provision of auto related comprehensive services, including sales
and maintenance of autos, production of detection equipments, and property leasing and management.
Major products and services: sales, detection and maintenance of autos and components, property leasing
and service.
3. The history of the Company
Shenzhen Testrite Group Co., Ltd. (hereinafter referred to as the Company), previously known as
Shenzhen Machinery Industry Company, was incorporated on 10 November 1986. In 1992, as authorized
by the reply relating to Shenzhen Machinery Industry Company transforming to Shenzhen Testrite
Machinery Co., Ltd.(SFBF[1991]1012) issued by the Office of Shenzhen People Government, Shenzhen
Machinery Industry Company was transformed to Shenzhen Testrite Machinery Co., Ltd. in 1993, as
authorized by the reply relating to Shenzhen Testrite Machinery Co., Ltd. transforming to a public
company (SFBF[1992]1850) issued by the Office of Shenzhen People Government and the reply relating
to issuance of stocks by Shenzhen Testrite Machinery and Electric Co., Ltd. (SRYFZ[1993]092) issued
by Shenzhen branch of People’s Bank of China, Shenzhen Testrite Machinery Co., Ltd. changed to be a
24
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
public company and made the initial public offering. The name of the Company changed to Shenzhen
Testrite Machinery and Electric Co., Ltd., with a total share capital of 166,880,000 shares, among which,
120,900,000 shares were converted from the original assets and 45,980,000 shares were newly issued.
The newly issued shares comprises of 25,980,000 RMB ordinary shares (A shares) and 20,000,000 RMB
special shares (B shares). In June 1993, as approved by the reply relating to listing of Shenzhen Testrite
Machinery and Electric Co., Ltd. (SZBF[1993]34) issued by Shenzhen Securities Management Office
and the Listing Grant issued by Shenzhen Stock Exchange(SZSZ[1993]22), Shenzhen Testrite Machinery
and Electric Co., Ltd. was listed on Shenzhen Stock Exchange. On 15 March 1993, being approved by
branch of Shenzhen Special Economic Zone of People’s Bank of China “Shen Ren Yin Fu Zi (1993) No.:
092”, the Company released 25.98 million registered common A shares with RMB 1.00 par value as well
as 20 million B shares. And the Company renamed as Shenzhen Tellus Holding Co., Ltd. instead of
Shenzhen Testrite Machinery Co., Ltd. dated 30 June 1994 after approval from the Shenzhen
Administration for Industry and commerce.
Capital structure of the Company while initial public offering:
Type Amount (Share) Ratio (%)
I. Non-tradable share
Including: State shares 120,900,000 72.45
Total non-tradable shares 120,900,000 72.45
II. Outstanding shares
1. Tradable A-Share 25,980,000 15.57
2. Tradable B-Share 20,000,000 11.98
Total tradable shares 45,980,000 27.55
Total 166,880,000 100.00
All previous changes in the share capital after the public issue of the Company:
(1) Bonus shares in 1993
The Company held the resolution of annual shareholders' general meeting of 1993, distribute dividend of
0.5 Yuan in cash for every 10 shares and 2 more bonus shares to all shareholders based on the Company’s
total share capital of 166,880,000 shares on 31st, Dec., 1993, and the Company’s total share capital
changed to 200,256,000 shares.
On 22nd April 1994, Shenzhen Securities Regulatory Office approved the stock dividend scheme of the
Company. After the implementation of the stock dividend program, the ownership structure of the
Company became as follows:
Type Amount (Share) Ratio (%)
25
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Type Amount (Share) Ratio (%)
State-owned corporate
shares 145,080,000 72.45
Domestic public shares 31,176,000 15.57
RMB special stock
(B-Share) 24,000,000 11.98
Total 200,256,000 100.00
(2) Bonus shares and capitalization in 1994
On 28th May 1995, the shareholders' general meeting of the Group approved the bonus share and
capitalization program proposed by the board of directors. The Company distributes 0.5 bonus shares to
every 10 shares with 0.5 more shares increased for 0.5 Yuan dividend in cash to all shareholders based on
the Company’s total share capital of 200,256,000 shares on 31st, Dec., 1994, and the Company’s total
share capital changed to 220,281,600 shares.
Equity structure of the Company after bonus scheme implemented:
Type Amount (Share) Ratio (%)
State-owned corporate
shares 159,588,000 72.45
Domestic public shares 34,293,600 15.57
RMB special stock
(B-Share) 26,400,000 11.98
Total 220,281,600 100.00
(3) The changes of controlling shareholders in 1997
On 31st March 1997, in accordance with the approval of “Shenfuhan [1997] No.19” and “Zhengjianhan
[1997] No.5”, the People's Government of SZ Municipality and China Securities Regulatory Commission
agreed Shenzhen Investment and Management Company to transfer its 159,588,000 shares of State
shares to “Shenzhen Special Development Group Co., Ltd” (hereinafter referred to as “SDG”), which
took proportion of 72.45% in the total share capital.
(4) Reform of non-tradable shares in 2006
In December 2005, Shenzhen State-owned Assets Supervision and Administration Commission approved
the non-tradable shares reform program of Shenzhen Tellus (Group) Ltd. which reported by the
Company’s non-tradable shareholders - Shenzhen Special Development Group Co., Ltd.
On 4th January 2006, SDG paid 13,717,440 shares of stock to the shareholders of A shares in circulation
as the consideration of the non-tradable shares reform, and SDG held 66.22% of the Company’s total
share capital after the non-tradable shares reform. After the implementation of the non-tradable shares
26
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
reform program, the ownership structure of the company became as follows:
Type Amount (Share) Ratio (%)
State-owned corporate shares 145,870,560 66.22
Domestic public shares 48,011,040 21.80
RMB special stock
(B-Share) 26,400,000 11.98
Total 220,281,600 100.00
(5) Non-public RMB common stock offer in 2015
In accordance with the provisions of the Company’s 19th extraordinary meeting of the 7th session of board
of directors on April 21, 2014 and the resolutions of the fourth extraordinary general meeting of 2014 on
June 3, 2014, the non-public offering of RMB ordinary shares (A shares) that the Company issues to
Shenzhen SDG Co., Ltd. and Shenzhen CMAF Jewelry Industry Investment Company (limited
partnership) should not exceed 77,000,000 shares, of which the par value is 1 Yuan per share, the total
raised funds are no more than RMB 646,800,000.00 Yuan, the issuance objects are all subscribed by cash.
On May 19, 2014, State-owned Assets Supervision and Administration Commission of the People's
Government of Shenzhen Municipality issued “Reply to issues related to non-public offering of shares of
Shenzhen Test Rite (Group) Co., Ltd. from SASAC of Shenzhen Municipality” (SGZWH No. [2014]237)
which agreed the Company’s plan for non-public offering of shares. The Company’s non-public offering
has obtained the “Approval for non-public offering of shares of Shenzhen Test Rite (Group) Co., Ltd.”
(CSRC License No. [2015]173) approved by China Securities Regulatory Commission, which agrees the
Company to issue the non-public offering of RMB ordinary shares (A shares) not exceeding 77,000,000
new shares. The registered capital is RMB 297,281,600.00 after change, and the company’s ownership
structure is as follows:
Type Amount (Share) Ratio (%)
State-owned corporate shares 151,870,560 51.09
Domestic public shares 119,011,040 40.03
RMB special stock (B-Share) 26,400,000 8.88
Total 297,281,600 100.00
(6) Reducing stock by controlling shareholder in 2016
In accordance with the Announcement on Reducing Share Holding of Controlling Shareholder the
company disclosed on June 1, 2016, from May 4, 2016 to May 31, 2016, Shenzhen SDG Co., Ltd. totally
reduced 2,972,537 shares of the company’s unrestricted outstanding shares by concentrated bidding,
accounting for 1% of the company’s total share capital. On September 30, 2016, the company received a
Letter About Reducing Test Rite A Shares and Completing the Share Holding Reducing Plan from SDG,
27
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
from September 29, 2016 to September 29, 2016, SDG totally reduced 2,972,767 shares of the company’s
unrestricted outstanding shares by concentrated bidding, accounting for 1% of the company’s total share
capital. Up to September 29, 2016, SDG completed the share holding reducing plan. The company's
equity structure was as follows:
Type Amount (Share) Ratio (%)
State-owned corporate shares 145,925,256 49.09
Domestic public shares 124,956,344 42.03
RMB special stock (B-Share) 26,400,000 8.88
Total 297,281,600 100.00
As of 30 June 2017, the Company have 297,281,600 shares offered in total, found more in 31 of Note VI.
4. Consolidation scope of the Company in the year
Totally 15 companies included in the consolidation scope for the first half Year of 2017, found more in
“Equity in other entity” in the Note VIII. One company deducted in consolidation range in the Year.
5. Relevant party offering approval reporting of financial statements and date thereof
This financial statement is approved for disclosure by resolution from the Board dated 30 August 2017.
II. Basis Preparation of the Financial Statements
The financial statements of the Group is prepared based on the going-concern assumption in accordance
with the actually occurred transactions and events, the “Accounting standards for Business
Enterprise-Basic rules” (ministry of finance order No. 33 issued, ministry of finance No.76 revised), the
“Accounting Standards for Business Enterprises – Basic Standards” and 41 specific accounting standards
promulgated by the ministry of finance on 15th, Feb., 2006, the subsequently promulgated application
guide and interpretation of the accounting standards for business enterprises and other relevant provisions
(hereinafter collectively referred to as “ASBE”), and China Securities Regulatory Commission
“information disclosure regulations No.15 for the companies publicly issuing securities - general
provisions of financial reports” (2014 Revision).
According to the relevant requirements under the Accounting Standards for Business Enterprises, the
Company has adopted the accrual basis as its basis of accounting. Except for certain financial instruments,
historical costs have been adopted as the basis of measurement in these Financial Statements.
Non-current assets held for sale are recorded at the lower of fair value less predicted expenses and the
original carrying value when the assets satisfy such conditions for sale. Provisions of corresponding
impairment losses are recognized in respect of any impairment of assets.
III. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Groups meet the requirements of the Accounting Standards for
28
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Business Enterprises, truthfully and completely reflect the financial situation of the Company on 30th,
June 2017 and the business performance and cash flow in January to June of 2017. In addition, the
financial statements of the Company and the Group meet the disclosure requirements of “Preparation
Regulation of Information Disclosure for Enterprise with Security Issued Publicly No.15—General Rules
of Financial Report” revised by China Securities Regulatory Commission in all significant aspects in
2014.
IV. Main accounting policy and estimate
The Company and its subsidiaries determine specific accounting policies and accounting estimation
based on their actual production characteristics according to the relevant requirements under the
Accounting Standards for Business Enterprises. Details relating to significant accounting judgment and
estimation made by the management, please refer to note IV(29) “Significant accounting judgment and
estimation”.
1. Fiscal period
The accounting period of the Group includes annual and interim, accounting interim refers to the
reporting period shorter than a complete fiscal year. The fiscal year of the Group adopts the Gregorian
calendar, i.e. from 1 January to 31 December for each year.
2. Business cycle
Normal business cycle is the period from purchasing assets used for process by the Company to the cash
and cash equivalent achieved.
The Company’s normal business cycle was one-year (12 months), and as the determining criterion of the
liquidity for assets and liabilities.
3. Book-keeping currency
RMB is the currency in the major economic environment of the Company and its sub-company which
take RMB as the book-keeping currency. The Group adopts RMB as the currency when preparing this
financial statement.
4. The accounting treatment of business merger under the common control and the different
control.
Business merger refers to the transactions or matters that two or more than two individual enterprises
form a reporting entity. Business combination is at least subject to the following conditions: to acquire
controlling right upon another or multiple enterprises (or business); enterprises to be combined must
constitute business. In case that an acquirer obtains controlling right upon another or multiple enterprises
which do not constitute business, the transaction shall not constitute business combination.
When acquirer acquires a group of assets or net assets which don’t constitute business, the acquisition
costs shall be allocated into various identifiable assets or liabilities based on their fair value as of the
acquisition date. Where there are specific identifiable assets which cannot be substituted taking
substantial proportion in a group of assets or net assets and the future cash flow of the acquiree also
highly depends on such specific identifiable assets, the remaining amount between acquisition costs less
29
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
fair value of other identifiable assets shall be entirely recorded in such specific identifiable assets.
Business merger includes the business merger under the common control and the different control.
(1) Business merger under the common control
Business merger under the common control means the enterprises participated in the merger are subject
to the ultimate control of the same party or the same multi-party before and after the merger, and the
control is not temporary. For the business merger under the same control, the party obtains the control
rights of other enterprises participated in the merger on the merger date is the merging party, and other
enterprises participated in the merger are the merged party. The merger date refers to the date that the
merging party obtains the control rights of the merged party.
The assets and liabilities of the merging party should be measured in accordance with the book value of
the combined party on the combining date. The balance between the book value of the net asset obtained
by the merging party and the book value of the merger consideration (or the total face value of the issued
shares) paid by the merging party, and adjust the capital reserve (share premium); for the capital reserve
(share premium) insufficient to reduce, adjust the retained earnings.
All direct expenses the merging party spent for the business merger are included in the current profit and
loss when the business merger occurred.
(2) Business merger under the different control
Business merger under the different control means the enterprises participated in the merger are not
subject to the ultimate control of the same party or the same multi-party before and after the merger. For
the business merger under the different control, the party obtains the control rights of other enterprises
participated in the merger on the acquisition date is the acquirer, and other enterprises participated in the
merger are the acquiree. The acquisition date refers to the date that the acquirer obtains the control rights
of the acquiree.
As for the business merger under the different control, the merger costs contain the assets paid by the
acquirer for obtaining the control rights of the acquiree on the acquisition date, the liabilities incurred or
assumed, and the fair value of the issued equity securities. The intermediary fees such as auditing, legal
services and consulting services costs and other administrative costs incurred by the business merger are
charged to the current profit and loss. The transaction costs of the equity securities or debt securities
issued as the combination consideration by the acquirer are reckoned in the initially recognized amount
of the equity securities or debt securities. As for the involved or existing consideration reckoned in the
merger costs in accordance with the fair value on the acquisition date, correspondingly adjust the
consolidated goodwill for these needs to be adjusted or possess consideration because new or further
evidence appears for the situations existing on the acquisition date within 12 months after the acquisition
date The merger costs of the acquirer and the net identifiable assets obtained in the merger are reckoned
in accordance with the fair value on the acquisition date. The balance of which the merger costs are more
than the net identifiable assets’ fair value share of the acquiree obtained in the merger on the acquisition
date is recognized as goodwill. For those whose merger costs are less than the net identifiable assets’ fair
value share of the acquiree obtained in the merger, recheck the obtained identifiable assets, liabilities, and
30
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
the fair value with contingent liability of the acquiree, and the measurement of the merger costs at first,
while for those whose merger costs are still less than the net identifiable assets’ fair value share of the
acquiree obtained in the merge after rechecking, reckon its the balance in the current profit and loss.
For the deductable temporary difference obtained by the acquirer from the acquiree that is not confirmed
because of not meeting the assets confirmation requirements of the deferred income taxes on the
acquisition date, if there is new or further information states that the relevant conditions on the
acquisition date has already existed and the economic interests on the acquisition date brought by the
deductable temporary difference can be realized by the acquiree within 12 months after the acquisition
date, then confirm the relevant deferred income tax assets, and decrease the goodwill, as for the goodwill
insufficient for reducing, confirm the difference to be the current profit and loss; except for the
above-mentioned cases, reckon those deferred income tax assets related to the business merger in the
current profit and loss.
For a business combination not involving enterprises under common control and achieved in stages, the
company shall determine whether the business combination shall be regarded as “a bundle of
transactions” in accordance with “Interpretation 5 on Accounting Standards for Business Enterprises”
(Cai Kuai 2012 No. 19) and clause 51 of ASBE 33- Consolidated Financial Statements relating to
judgment standard for “a bundle of transactions”(please refer to this Note IV 5(2)). When the business
combination is regarded as “a bundle of transactions”, the accounting treatment for the business
combination shall be in accordance with the previous paragraphs and Note IV 13 “long term equity
investment”; when the business combination is not regarded as “a bundle of transactions”, the accounting
treatment should be different when comes to individual financial report and consolidated financial report.
In the individual financial statements, the initial cost of the investment shall be the sum of the carrying
amount of its previously-held equity interest in the acquiree prior to the acquisition date and the amount
of additional investment made to the acquiree at the acquisition date. Other comprehensive income
involved in the previously-held equity interest of the acquiree prior to the acquisition date shall be subject
to accounting treatment on the same basis adopted by the acquiree in its direct disposal of related assets
or liabilities (which are reclassified as investment income during the period , net of the audited changing
corresponding shares resulted from the net liability and net assets re-measured and set by acquiree
according to equity method ).
In the consolidate financial statements, the previously-held equity interest of the acquire is re-measured
according to the fair value at the acquisition date; the difference between the fair value and the carrying
amount is recognized as investment income for the current period; the amount recognized in other
comprehensive income relating to the previously-held equity interest in the acquire shall be subject to
accounting treatment on the same basis adopted by the acquire in its direct disposal of related assets or
liabilities (which are reclassified as investment income during the period, net of the audited changing
corresponding shares resulted from the net liability and net assets re-measured and set by acquire
according to equity method).
5. Preparing method of consolidated financial statements
31
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(1) Determinate principles of range for consolidation financial statement
The scope of consolidated financial statements is determined based on control. Control is the power to
govern the investees so as to obtain benefits from their operating activities by the involvement in the
relevant activities of the investee. The scope of consolidation comprises the Company and all of its
subsidiaries. Subsidiaries are the entities controlled by the Company.
Once relevant elements involved in the above definition of control change due to alteration of relevant
facts or situations, the Company will make evaluation again.
(2) Preparing method of consolidated financial statements
Since the date of gaining the net assets and the actual control rights of the production and operation
decision-making of the subsidiaries, the Group has started to bring it into the consolidation scope; stop to
bring into the consolidation scope since the date of losing the actual control rights. As for the disposed
subsidiaries, the business performance and cash flow before the disposal have been suitably included in
the consolidated income statement and the consolidated cash flow statement; as for the subsidiaries
currently disposed; don’t adjust the opening balance of the consolidated balance sheet. For the
subsidiaries increased by the business merger under the different control, the business performance and
cash flow after its acquisition date have been suitably included in the consolidated income statement and
the consolidated cash flow statement, and don’t adjust the opening balance and correlation date of the
combined financial statement. For the subsidiaries increased by the business merger under the common
control, the business performance and cash flow from the beginning period of the merger to its merger
date have been suitably included in the consolidated income statement and the consolidated cash flow
statement, and adjust the correlation date of the combined financial statement at the same time.
When preparing the consolidated financial statements, for the accounting policies adopted by the
subsidiaries and the Company being inconsistent during the accounting time period, adjust in accordance
with the accounting policies of the Company and the financial statements of the subsidiaries during the
accounting time period. As for the subsidiaries obtained by the business merger under the different
control, adjust the financial statements based on the fair value of the net identifiable assets on the
acquisition date.
All significant intra-group current account balances, transactions and unrealized profits are offset in the
preparation of consolidated financial statements.
The stockholders' equity of the subsidiaries and the shares not belong to the Company in the current net
profit or loss are respectively served as the separate presentation in the stockholders' equity and net
profits of the minority interest and minority interest income in the consolidated financial statements. The
shares of the current net profit or loss of the subsidiaries that belong to the minority interest are listed
under net profit item in the consolidated profit statement as “minority interest income” item. Reduce the
minority interest for those that the subsidiaries’ losses shared by the minority shareholders exceed the
shares that the minority shareholders gained from the owner's equity at the beginning period of this
subsidiary.
When losing the control rights of the original sub companies because of disposing some equity
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
investment or other reasons, re-measure the residual equity in accordance with its fair value on the date of
losing the control rights. Use the sum of the consideration obtained by disposing the stock rights and the
fair value of the residual equity to minus the balance among the net assets’ shares of the original sub
companies continuously calculated since the acquisition date in accordance with the original shareholding
ratio, and then reckon in the current investment income when losing the control rights. The other
consolidated incomes related to the equity investment of the original sub companies, It shall be subject to
accounting treatment on the same basis adopted by the acquiree in its direct disposal of related assets or
liabilities during the period when the control ceases (which are reclassified as investment income for the
current period, other than changes resulting from re-measuring net liability or net assets under defined
benefit plan of the original subsidiary). Thereafter, do the follow-up measurement for this part’s residual
equity in accordance with the relevant provisions of “Accounting Standards for Business Enterprises
No.2 - long-term equity investment” or “Accounting Standards for Business Enterprises No.22 - financial
instruments recognition and measure’, refer to the Note IV 13 “long-term equity investment” or the Note
IV 9 “financial instruments” for details.
The company shall determine whether loss of control arising from disposal in a series of transactions
should be regarded as a bundle of transactions. When the economic effects and terms and conditions of
the disposal transactions met one or more of the following situations, the transactions shall normally be
accounted for as a bundle of transactions: (i) The transactions are entered into after considering the
mutual consequences of each individual transaction; (ii) The transactions need to be considered as a
whole in order to achieve a deal in commercial sense; (iii) The occurrence of an individual transaction
depends on the occurrence of one or more individual transactions in the series; (iv) The result of an
individual transaction is not economical, but it would be economical after taking into account of other
transactions in the series. When the transactions are not regarded as a bundle of transactions, the
individual transactions shall be accounted as “disposal of a portion of an interest in a subsidiary which
does not lead to loss of control”) (for details, please refer to Note IV 13(2)④) and “disposal of a portion
of an interest in a subsidiary which lead to loss of control” (details are set out in previous paragraph).
When the transactions are regarded as a bundle of transactions, the transactions shall be accounted as a
single disposal transaction; however, the difference between the consideration received from disposal and
the share of net assets disposed in each individual transactions before loss of control shall be recognized
as other comprehensive income, and reclassified as profit or loss arising from the loss of control when
control is lost.
6. Classification of joint arrangement and accounting for joint operations
A joint arrangement refers to an arrangement jointly controlled by two or more parties. In accordance
with the Company’s rights and obligations under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations. Joint operations refer to a joint arrangement during
which the Company is entitled to relevant assets and obligations of this arrangement. Joint ventures refer
to a joint arrangement during which the Company only is entitled to net assets of this arrangement.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Investment in joint venture is accounted for using the equity method accounting to the accounting
policies referred to Note IV 13(2)②“Long-term equity investment accounted for using the equity
method”.
The Company shall, as a joint venture, recognize the assets held and obligations assumed solely by the
Company, and recognize assets held and obligations assumed jointly by the Company in appropriation to
the share of the Company; recognize revenue from disposal of the share of joint operations of the
Company; recognize fees solely occurred by Company and recognize fees from joint operations in
appropriation to the share of the Company.
When the Company, as a joint venture, invests or sells assets to or purchase assets (the assets dose not
constitute a business, the same below) from joint operations, the Company shall only recognize the part
of profit or lost from this transaction attributable to other parties of joint operations before these assets
are sold to a third party. In case of an impairment loss incurred on these assets which meets the
requirements as set out in “Accounting Standards for Business Enterprises No. 8 – Asset Impairment”,
the Company shall recognize the full amount of this loss in relation to its investment in or sale of assets
to joint operations, or recognize the loss according to the Company’s share of commitment in relation to
the its purchase of assets from joint operations.
7. Determination criteria of cash and cash equivalent
Cash and cash equivalent of the Company including stock cash, deposits available for payment at any
time and the investment held by the Company with the follow characters obtained at the same time: short
term (expire within 3 months commencing from purchase day), active liquidity, easy to convert to
already-known cash, and small value change risks.
8. Foreign Currency Operations and translation of foreign currency statements
(1) Basis for translation of foreign currency transactions
The foreign currency transactions of the Company, when initially recognized, are translated into
functional currency at the prevailing spot exchange rate on the date of exchange (usually refers to the
middle rate of the exchange rate for the day as quoted by the People’s Bank of China, the same below)
while the Company’s foreign currency exchange operations and transactions in connection with foreign
currency exchange shall be translated into functional currency at the exchange rate actually adopted.
(2) Basis for translation of foreign currency monetary items and foreign currency non-monetary items
On the balance sheet date, foreign currency monetary items shall be translated at the spot exchange rate
on the balance sheet date. All differences are included in the consolidated income statement, except for:
① the differences arising from foreign currency borrowings related to the acquisition or construction of
fixed assets which are qualified for capitalization; and ② except for other carrying amounts of the
amortization costs, the differences arising from changes of the foreign currency items available for sale.
When preparing consolidated financial statement involving overseas operation, in case there is foreign
currency monetary items which substantially constitute net investment in overseas operation, the
exchange difference arising from exchange rate fluctuation shall be included in other comprehensive
income; and shall transfer to gains and losses from disposal for the current period when the overseas
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
operation is disposed of.
The foreign currency non-monetary items measured at historical cost shall still be measured by the
functional currency translated at the spot exchange rate on the date of the transaction. Foreign currency
non-monetary items measured at fair value are translated at the spot exchange rate on the date of
determination of the fair value. The difference between the amounts of reporting currency before and
after the translation will be treated as changes in fair value (including changes in foreign exchange rates)
and recognized in profit or loss for the period or recognized as other consolidated income.
(3) Translation of foreign currency financial statement
When preparing consolidated financial statement involving overseas operation, in case there is foreign
currency monetary items which substantially constitute net investment in overseas operation, the
exchange difference arising from exchange rate fluctuation shall be included in other comprehensive
income as “translation difference of foreign currency statement”; and shall transfer to gains and losses
from disposal for the current period when the overseas operation is disposed of.
Foreign currency financial statement for overseas operation is translated into RMB statement by the
following means: assets and liabilities in balance sheet are translated at the spot rate as of balance sheet
date; owner’s equity items (other than undistributed profit) are translated at the spot rate prevailing on the
date of occurrence. Income and expense items in profit statement are translated at the spot rate prevailing
on the date of transactions. Beginning undistributed profit represents the translated ending undistributed
profit of previous year; ending undistributed profit is allocated and stated as several items upon
translation. Upon translation, difference between assets, liabilities and shareholders’ equity items shall be
recorded as foreign currency financial statement translation difference and recognized as other
comprehensive income. In case of disposal of overseas operation where control is lost, foreign currency
financial statement translation difference relating to the overseas operation as stated under shareholders’
equity in balance sheet shall be transferred to current gains and losses of disposal in full or under the
proportion it disposes.
Foreign currency cash flow and cash flow of overseas subsidiary are translated at the spot rate prevailing
on the date of occurrence of cash flow. Influence over cash from exchange rate fluctuation is taken as
adjustment items to separately stated in cash flow statement.
The beginning figure and previous year actual figures are stated at the translated figures in previous year
financial statement.
If the Company loses control over overseas operation due to disposal of all the owners’ equity or part
equity investment in the overseas operation or other reasons, foreign currency financial statement
translation difference relating to the overseas operation attributable to owners’ equity of parent company
as stated under shareholders’ equity in balance sheet shall be transferred to current gains and losses of
disposal in full.
If the Company reduces equity proportion while not loses control over overseas operation due to disposal
of part equity investment in the overseas operation or other reasons, foreign currency financial statement
translation difference relating to the disposed part will be vested to minority interests and will not transfer
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
to current gains and losses. When disposing part equity interests of overseas operation which is associate
or joint venture, foreign currency financial statement translation difference relating to the overseas
operation shall transfer to current disposal gains and losses according to the disposed proportion.
9. Financial instruments
(1) Method of determination of the fair value for financial assets and financial liabilities
Fair value represents the price that market participator can receive for disposal of an asset or he should
pay for transfer of a liability in an orderly transaction happened on the measurement date. Financial
instruments exist in an active market. Fair value is determined based on the quoted price in such market.
An active market refers to where pricing is easily and regularly obtained from exchanges, brokers,
industrial organizations and price-fixing service organizations, representing the actual price of a market
transaction that takes place in a fair deal. While financial instruments do not exist in an active market, the
fair value is determined using valuation techniques. Valuation technologies include reference to be
familiar with situation and prices reached in recent market transactions entered into by both willing
parties, reference to present fair values of similar other financial instruments, cash flow discounting
method and option pricing models.
(2) Classification, recognition and measurement of the financial assets
Financial asset or financial liability is recognized when the Company becomes a party to financial
instrument contract. Financial assets and liabilities are initially measured at fair value. For financial assets
and financial liabilities classified as fair value through profit or loss, relevant transaction costs are
directly recognized in profit or loss for the period. For financial assets and financial liabilities classified
as other categories, relevant transaction costs are included in the amount initially recognized.
①Financial assets carried at fair value through profit or loss for the current period
They include financial assets held for trading and financial assets designated as at fair value through
profit or loss for the current period.
Financial assets may be classified as financial assets held for trading if one of the following conditions is
met: A. the financial assets is acquired or incurred principally for the purpose of selling it in the near term;
B. the financial assets is part of a portfolio of identified financial instruments that are managed together
and for which there is objective evidence of a recent pattern of short-term profit taking; or C. the
financial assets is a derivative, excluding the derivatives designated as effective hedging instruments, the
derivatives classified as financial guarantee contract, and the derivatives linked to an equity instrument
investment which has no quoted price in an active market nor a reliably measured fair value and are
required to be settled through that equity instrument.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following
conditions is satisfied: A. Such designation eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or
losses on them on different bases; or B. The financial asset forms part of a group of financial assets or a
group of financial assets and financial liabilities, which is managed and its performance is evaluated on a
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
fair value basis, in accordance with the Group’s documented risk management or investment strategy,
and information about the grouping is reported to key management personnel on that basis.
Financial assets carried at fair value through profit or loss for the current period is subsequently measured
at fair value. The gain or loss arising from changes in fair value and dividends and interest income related
to such financial assets are charged to profit or loss for the current period.
②Held-to-maturity investments
They are non-derivative financial assets with fixed maturity dates and fixed or determinable payments
that the Group has positive intent and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest
method. Gain or loss on derecognition, impairment or amortization is recognized through profit or loss
for the current period.
The effective interest method is a method of calculating the amortized cost of a financial asset and of
allocating interest income or expense over each period based on the effective interest of a financial asset
or a financial liability (including a group of financial assets or financial liabilities). The effective interest
is the rate that discounts future cash flows from the financial asset or financial liability over its expected
life or (where appropriate) a shorter period to the carrying amount of the financial asset or financial
liability.
In calculating the effective interest rate, the Group will estimate the future cash flows (excluding future
credit losses) by taking into account all contract terms relating to the financial assets or financial
liabilities whilst considering various fees, transaction costs and discounts or premiums which are part of
the effective interest rate paid or received between the parties to the financial assets or financial liabilities
contracts.
③ Loans and receivable
They are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Financial assets, including bills receivable, accounts receivable, interest receivable,
dividends receivable and other receivables, are classified as loans and receivables by the Group.
Loans and receivables are subsequently measured at amortized cost using the effective interest method.
Gain or loss arising from derecognition, impairment or amortization is recognized in current profit or
loss.
④Available-for-sale financial assets
They include non-derivative financial assets that are designated in this category on initial recognition,
and the financial assets other than the financial assets at fair value through profit and loss, loans and
receivables and held-to-maturity investments.
The closing cost of available-for-sale debt instruments are determined based on amortized cost method,
which means the amount of initial recognition less the amount of principle already repaid, add or less the
accumulated amortized amount arising from the difference between the amount due on maturity and the
amount initially recognized using effective interest rate method, and less the amount of impairment losses
recognized. The closing cost of available-for-sale equity instruments is equal to its initial acquisition cost.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Available-for-sale financial assets are subsequently measured at fair value. The gain or loss on change in
fair value are recognized as other comprehensive income, except for impairment loss and exchange
differences arising from foreign monetary financial assets and amortized cost which are accounted for
through profit or loss for the current period. The financial assets will be transferred out of the financial
assets on derecognition and accounted for through profit or loss for the current period.
However, equity instrument investment which is not quoted in active market and whose fair value cannot
be measured reliably, and derivative financial asset which is linked to the equity instrument and whose
settlement is conditional upon delivery of the equity instrument, shall be subsequently measured at cost.
Interests received from available-for-sale financial assets held and the cash dividends declared by the
investee are recognized as investment income.
(3) Impairment of financial assets
In addition to financial assets at fair value through profit or loss for the current period, the Group reviews
the book value of other financial assets at each balance sheet date and provide for impairment where
there is objective evidence that financial assets are impaired.
For a financial asset that is individually significant, the Group assesses the asset individually for
impairment. For a financial asset that is not individually significant, the Group assess the asset
individually for impairment or include the asset in a group of financial assets with similar credit risk
characteristics and collectively assess them for impairment. If it is determined that no objective evidence
of impairment exists for an individually assessed financial asset, whether the financial asset is
individually significant or not, the financial asset is included in a group of financial assets with similar
credit risk characteristics and collectively assessed for impairment. Financial assets for which an
impairment loss is individually recognized are not included in the collective assessment for impairment.
①Impairment of held-to-maturity investments, loans and receivables
The carrying amount of financial assets measured at costs or amortized costs are subsequently reduced to
the present value discounted from its projected future cash flow. The reduced amount is recognized as
impairment loss and recorded as profit or loss for the period. After recognition of the impairment loss
from financial assets, if there is objective evidence showing recovery in value of such financial assets
impaired and which is related to any event occurring after such recognition, the impairment loss
originally recognized shall be reversed to the extent that the carrying value of the financial assets upon
reversal will not exceed the amortized cost as at the reversal date assuming there is no provision for
impairment.
②Impairment of available-for-sale financial assets
In the event that decline in fair value of the available-for-sale equity instrument investment is regarded as
“severe decline” or “non-temporary decline” on the basis of comprehensive related factors, it indicates
that there is impairment loss of the available-for-sale equity instrument investment.
The company’s standards to judge if the fair value of available for sale equity instruments investment has
a “severe” depreciation is that if the fair value of a single available for sale financial asset has a sharp fall
which exceeds 50% of its holding cost, then this available for sale financial asset is affirmed to have a
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
severe decrease in value and should have the provision for asset impairment to confirm the impairment
loss.
The company’s standards to judge if the fair value of available for sale equity instruments investment has
a “non-temporary" depreciation is that if the fair value of a single available for sale financial asset has a
sharp fall and this downtrend is predicted to be non-temporary with the duration over a year that cannot
be fundamentally changed in the whole holding period, then this available for sale financial asset is
affirmed to have a non-temporary decrease in value and should have the provision for asset impairment to
confirm the impairment loss.
When the available-for-sale financial assets impair, the accumulated loss originally included in the capital
reserve arising from the decrease in fair value was transferred out from the capital reserve and included in
the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is the
balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,
current fair value and the impairment loss originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such
financial assets impaired and which is related to any event occurring after such recognition in subsequent
periods, the impairment loss originally recognized shall be reversed. The impairment loss reversal of the
available-for-sale equity instrument will be recognized as other consolidated income, and the impairment
loss reversal of the available-for-sale debt instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be
measured reliably, or the impairment loss of a derivative financial asset linked to the equity instrument
that shall be settled by delivery of that equity instrument, then it will not be reversed.
(4) Recognition and measurement of transfers of financial asset
Financial asset that satisfied any of the following criteria shall be derecognized: ①the contract right to
recover the cash flows of the financial asset has terminated; ② the financial asset, along with
substantially all the risk and return arising from the ownership of the financial asset, has been transferred
to the transferee; and ③ the financial asset has been transferred to the transferee, and the transferor has
given up the control on such financial asset, though it does not assign maintain substantially all the risk
and return arising from the ownership of the financial asset.
When the entity does not either assign or maintain substantially all the risk and return arising from the
ownership of the financial asset and does not give up the control on such financial asset, to the extent of
its continuous involvement in the financial asset, the entity recognizes it as a related financial asset and
recognizes the relevant liability accordingly. The extent of the continuous involvement is the extent to
which the entity exposes to changes in the value of such financial assets.
On derecognition of a financial asset, the difference between the following amounts is recognized in
profit or loss for the current period: the carrying amount and the sum of the consideration received and
any accumulated gain or loss that had been recognized directly in equity.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
If a part of the financial assets qualifies for derecognition, the carrying amount of the financial asset is
allocated between the part that continues to be recognized and the part that qualifies for derecognition,
based on the fair values of the respective parts. The difference between the following amounts is
recognized in profit or loss for the period: the sum of the consideration received and the carrying amount
of the part that qualifies for derecognition and the aforementioned carrying amount.
For financial assets that are transferred with recourse or endorsement, the Company needs to determine
whether the risk and rewards of ownership of the financial asset have been substantially transferred. If the
risk and rewards of ownership of the financial asset have been substantially transferred, the financial
assets shall be derecognized. If the risk and rewards of ownership of the financial assets have been
retained, the financial assets shall not be derecognized. If the Company neither transfers nor retains
substantially all the risks and rewards of ownership of the financial assets, the Company shall assess
whether the control over the financial assets is retained, and the financial assets shall be accounted for
according to the above paragraphs.
(5) Classification and measurement of financial liabilities
At initial recognition, financial liabilities are classified either as “financial liabilities at fair value through
profit or loss” or “other financial liabilities”. Financial liabilities are initially recognized at fair value. For
financial liabilities classified as fair value through profit or loss, relevant transaction costs are directly
recognized in profit or loss for the period. For financial liabilities classified as other categories, relevant
transaction costs are included in the amount initially recognized.
① Financial liabilities at fair value through profit or loss for the period
The criteria for a financial liability to be classified as held for trading and designated as at financial
liabilities at fair value through profit or loss are the same as those for a financial asset to be classified as
held for trading and designated as at financial assets at fair value through profit or loss.
Financial liabilities at fair value through profit or loss for the period are subsequently measured at fair
value. The gain or loss arising from changes in fair value and dividends and interest income related to
such financial liabilities are included into the current profit or loss.
② Other financial liabilities
Derivative financial liabilities which are linked to equity instruments that are not quoted in an active
market and the fair value of which cannot be measured reliably measured, and which shall be settled by
delivery of equity instruments are subsequently measured at cost. Other financial liabilities are
subsequently measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition or amortization is recognized in profit or loss for the current period.
③Financial guarantee contract
Financial guarantee contract in respect of financial liabilities not designed at fair value through profit or
loss shall be initially measured at fair value, and subsequently measured at the lower between the amount
determined under Accounting Standards for Enterprises No.13-Contingent issues and its initial
measurement amount less accumulative amortization determined under Accounting Standards for
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Enterprises No.14-Revenue.
(6) Derecognition of financial liabilities
Financial liabilities are derecognized in full or in part only when the present obligation is discharged in
full or in part. An agreement is entered between the Group (debtor) and a creditor to replace the original
financial liabilities with new financial liabilities with substantially different terms, derecognize the
original financial liabilities as well as recognize the new financial liabilities.
When financial liabilities is derecognized in full or in part, the difference between the carrying amount of
the financial liabilities derecognized and the consideration paid (including transferred non-cash assets or
new financial liability) is recognized in profit or loss for the current period.
(7) Derivatives and embedded derivatives
Derivatives are initially measured at fair value as of the execution date of relevant contract, and
subsequently measured at fair value. Change of fair value of derivatives is recorded in profit or loss for
the period.
In respect of mixed instruments containing embedded derivatives, if they are financial assets or financial
liabilities not designated at fair value through profit or loss, and there is no close relation between
embedded derivatives and such main contract in terms of economic characteristics and risk, separate
instrument shares the same conditions with embedded derivatives and meets definition of derivatives, the
embedded derivatives are split off from the mixed instruments and accounted for as separate derivative
financial instrument. If an embedded derivative instrument cannot be measured separately upon
acquisition or at subsequent balance sheet date, the mixed instruments shall be taken in its entirety as
financial assets or financial liabilities designated at fair value through profit or loss.
(8) Offset of Financial Assets and Financial Liabilities
If the Group owns the legitimate rights of offsetting the recognized financial assets and financial
liabilities, which are enforceable currently, and the Group plans to realize the financial assets or to clear
off the financial liabilities by net amount method, the amount of the offsetting financial assets and
financial liabilities shall be reported in the balance sheep. Otherwise, financial assets and financial
liabilities are presented separately in the balance sheet without offsetting.
(9) Equity instruments
Equity instruments are any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. The Company issues (including refinancing), repurchases, sells or cancels
equity instruments as movement of equity. No fair value change of equity instrument would be
recognized by the Company. Transaction fees relating to equity transactions are deducted from equity.
The distribution (excluding the dividends) to the equity instrument holders by the Group shall reduce the
shareholder’s equity. The Group shall not recognize the changes of the equity instruments’ fair value.
10. Account receivable
Account receivable including receivables and other account receivables etc.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(1) Recognition standards for bad debt provision
On balance sheet date, the Company examined book value of the account receivable, if the followed
objective evidence has been show for impairment occurred, impairment provision shall withdrawal: ①the
debtor has serious financial difficulties; ②debtor violated the terms of the contract (such as interest or
principal payment default or overdue etc.); ③debtor probably close down or exercise other financial
restructuring; and ④other objective evidence showing impairment occurred on receivables.
(2) Withdrawal method for bad debt provision
①Recognition criteria and depreciation method for account receivable with large single amount and
accrued for provision of bad debt on a single basis
Account receivable with over RMB one million and other account receivable with over RMB 500,000 are
recognized as account receivable with large single amount.
The Company exercise impairment test separately on account receivable with large single amount, if no
impairment been found in financial assets after separate testing, they shall be included in portfolios of
accounts receivable with similar credit risk features for impairment tests.
For accounts receivable with confirmed impairment losses after separate tests, they shall not be included
in portfolios of accounts receivable with similar credit risk features for impairment tests.
②Recognition criteria and depreciation method for account receivable with accrued for provision of bad
debt on credit risk portfolio basis
A. Recognition basis for credit risk characteristics portfolio
As for the account receivable with minor single amount and those with major amount without impairment
had been found after testing on a single basis, the Company grouping the financial assets according to
similarity and relativity of the credit risk characteristics. The credit risk characteristics usually reflect the
repaying capability for all due amount from debtors, in line with the terms of the contract, and related
with the measurement of future cash flow on assets which has been examined.
Recognition basis for different portfolio:
Item Basis
Age portfolio Divide the portfolio on the age of account receivable as a credit risk characteristics
B. Depreciation method for bad debt provision recognized by credit risk characteristics portfolio
At the time of impairment testing, the bad debt amount will recognized by the estimated losses, according
to historical losses experience, which has been occurred in account receivable portfolio, and current
economic status as well as portfolio structure and similar credit risk characteristics (debt paying
capability for debtor based on terms of the contract).
Depreciation method of bad debt provision in different portfolio:
Item Depreciation method
Age portfolio Accrual bad debt provision by aging of accounts
a. Depreciation method of bad debt provision by aging of accounts in portfolio
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Accrual ratio of account Accrual ratio of other
Age
receivable (%) receivables (%)
Within 1 year (including one year, the same below) No accrual No accrual
1-2 years 5 5
2-3 years 20 20
Over 3 years 50 50
③Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis:
Account receivable with RMB one million at most and other account receivable with RMB 500,000 at
most are recognized as account receivable with insignificant single amount.
As for the account receivable with insignificant single amount but with followed features, exercise
impairment separately, if there has evidence of impairment, provision for bad debts shall be made at the
difference of present value of estimated future cash flows in short of their book values, and shall be
recognized as impairment losses: account receivable with dispute and arbitration involved or exist with
the counter party; receivables which has obvious evidence that the debtor probably unable to performed
payment obligations etc.
(3) Reversal of bad debt provisions
If there is evidence showing that the value of the account receivable has been recovered, and that the
recovery is objectively related to events after recognition of the loss, the originally recognized
impairment loss should be reversed and included in current profit and loss. However, the book values
after such reversal shall not exceed the amortized costs of the account receivable on the reversal date,
assuming there is no provision for impairment.
11. Inventories
(1) Classification of inventories
Inventory including raw materials, stock commodity and low value consumables etc.
(2) Pricing for inventories delivered and obtained
Inventories are priced at actual costs when acquired. Inventory cost includes procurement cost,
processing cost and other costs. Raw materials and inventory commodities are measured under weighted
average method when applied for use and delivered.
(3) Recognition for net realizable value of inventories and withdrawal method for inventory impairment
provision
Net realizable value refers to the amount resulted by inventory’s estimated sale price minor the cost,
which is going to occurred till end of the completion, estimated sales expenses and relevant taxes, in
daily activities. At the time of recognizing the net realizable value for inventory, on basis of unambiguous
evidence, take the purpose of inventory held and influence of events after the balance sheet date into
account at the same time.
On balance sheet date, measure of the inventory is made as the lower of their cost and or net realizable
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
values. Provision for inventory depreciation reserve are made while the net realizable values below the
cost. Inventory falling price reserves withdrawal usually base on the difference of the cost of single
inventory which over the net realizable value. As for inventories with numerous quantity and low unit
price, inventory depreciation provision is made based on categories of inventories.
After inventory impairment provision, if any factor rendering write-downs of the inventories has been
eliminated as net realizable value higher than its book value resulted, the amounts written down are
recovered and reversed from the inventory depreciation reserve, which has been provided for. The
reversed amounts are included into the current profit and loss.
(4) Inventory system was the perpetual inventory system.
(5) Low value consumptions and packing materials are amortized under amortization method when
applied for use.
12. 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.
13. Long-term equity investments
Long-term equity investments under this section refer to long-term equity investments in which the
Company has control, joint control or significant influence over the investee. Long-term equity
investment without control or joint control or significant influence of the Group is accounted for as
available-for-sale financial assets or financial assets measured at fair value with any change in fair value
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
charged to profit or loss. Details on its accounting policy please refer to Note 9. “Financial instruments”
under section IV.
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which
relevant activities of such arrangement must be decided by unanimously agreement from parties who
share control. Significant influence is the power of the Company to participate in the financial and
operating policy decisions of an investee, but to fail to control or joint control the formulation of such
policies together with other parties.
(1) Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing
party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of
the ultimate controlling party on the date of combination. The difference between the initial cost of the
long-term equity investment and the cash paid, non-cash assets transferred as well as the book value of
the debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is
insufficient to offset, the retained earnings shall be adjusted. If the consideration of the merger is satisfied
by issue of equity securities, the initial investment cost of the long-term equity investment shall be the
absorbing party’s share of the carrying amount of the owner’s equity under the consolidated financial
statements of the ultimate controlling party on the date of combination. With the total face value of the
shares issued as share capital, the difference between the initial cost of the long-term equity investment
and total face value of the shares issued shall be used to offset against the capital reserve. If the capital
reserve is insufficient to offset, the retained earnings shall be adjusted. For business combination resulted
in an enterprise under common control by acquiring equity of the absorbing party under common control
through a stage-up approach with several transactions, these transactions will be judged whether they
shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions
will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a
basket”, the initial investment cost of the long-term equity investment shall be the absorbing party’s share
of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term
equity investment and the aggregate of the carrying amount of the long-term equity investment before
merging and the carrying amount the additional consideration paid for further share acquisition on the
date of combination shall offset against the capital reserve. If the capital reserve is insufficient to offset,
the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the
previously held equity investment accounted for using equity method on the date of combination or
recognized for available-for-sale financial assets will not be accounted for.
For a long-term equity investment acquired through a business combination involving enterprises not
under common control, the initial investment cost of the long-term equity investment shall be the cost of
combination on the date of acquisition. Cost of combination includes the aggregate fair value of assets
paid by the acquirer, liabilities incurred or borne and equity securities issued. For business combination
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
resulted in an enterprise not under common control by acquiring equity of the acquiree under common
control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these
transactions will be accounted for a transaction in obtaining control. If they are not belong to
“transactions in a basket”, the initial investment cost of the long-term equity investment accounted for
using cost method shall be the aggregate of the carrying amount of equity investment previously held by
the acquiree and the additional investment cost. For previously held equity accounted for using equity
method, relevant other comprehensive income will not be accounted for. For previously held equity
investment classified as available-for-sale financial asset, the difference between its fair value and
carrying amount, as well as the accumulated movement in fair value previously included in the other
comprehensive income shall be transferred to profit or loss for the current period.
Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and
valuation and consultation fees, and other related administration expenses are charged to profit or loss in
the current period at the time such expenses incurred.
The long-term equity investment acquired through means other than a business combination shall be
initially measured at its cost. Such cost is depended upon the acquired means of long-term equity
investments, which is recognized based on the purchase cost actually paid by the Company in cash, the
fair value of equity securities issued by the Group, the agreed value of investment contract or agreement,
the fair value or original carrying amounts of the non-monetary asset exchange transaction which the
asset will be transferred out of the Company, and the fair value of long-term equity investment itself. The
costs, taxes and other necessary expenses that are directly attributable to the acquisition of the long-term
equity investments are also included in the investment cost. For additional equity investment made in
order to obtain significant influence or common control over investee without resulted in control, the
relevant cost for long-term equity investment shall be the aggregate of fair value of previously held
equity investment and additional investment cost determined according to “Accounting Standard for
Business Enterprises No. 22 – Recognition and measurement of Financial Instruments”.
(2) Subsequent measurement and income recognition method
Long term equity investment by which the Company has common control (other than that constituting
joint operation) or significant influence in investee is measured under equity method. In addition, long
term equity investment by which the Company is able to exercise control in investee is measured under
cost method in financial statements.
①Long term equity investment measured under cost method
Under cost method, long term equity investment is measured at initial investment cost, and cost of long
term equity investment shall be adjusted in case of adding or recovering investment. Other than the price
actually paid when obtaining investment or cash dividends or distribution declared but not paid in
consideration, investment income for the period would be recognized based on the cash dividend or
distribution declared by the investee.
② Long-term equity investments accounted for using the equity method
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no
adjustment shall be made to the initial investment cost. Where the initial investment cost is less than the
investor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, the
difference shall be charged to profit or loss for the current period, and the cost of the long term equity
investment shall be adjusted accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on
the Group’s share of the net profits or losses and other comprehensive income made by the investee,
respectively. Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The
carrying amount of long-term equity investment shall be reduced based on the Group’s share of profit or
cash dividend distributed by the investee. In respect of the other movement of net profit or loss, other
comprehensive income and profit distribution of investee, the carrying value of long-term equity
investment shall be adjusted and included in the capital reserves. The Group shall recognize its share of
the investee’s net profits or losses based on the fair values of the investee’s individual separately
identifiable assets at the time of acquisition, after making appropriate adjustments thereto. In the event of
inconformity between the accounting policies and accounting periods of the investee and the Company,
the financial statements of the investee shall be adjusted in conformity with the accounting policies and
accounting periods of the Company. Investment gain and other comprehensive income shall be
recognized accordingly. In respect of the transactions between the Group and its associates and joint
ventures in which the assets disposed of or sold are not classified as operation, the share of unrealized
gain or loss arising from inter-group transactions shall be eliminated by the portion attributable to the
Company. Investment gain shall be recognized accordingly. However, any unrealized loss arising from
inter-group transactions between the Group and an investee is not eliminated to the extent that the loss is
impairment loss of the transferred assets. In the event that the Group disposed of an asset classified as
operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment
by the investor without obtaining control, the initial investment cost of additional long-term equity
investment shall be the fair value of disposed operation. The difference between initial investment cost
and the carrying value of disposed operation will be fully included in profit or loss for the current period.
In the event that the Group sold an asset classified as operation to its associates or joint ventures, the
difference between the carrying value of consideration received and operation shall be fully included in
profit or loss for the current period. In the event that the Company acquired an asset which formed an
operation from its associates or joint ventures, relevant transaction shall be accounted for in accordance
with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or loss
related to the transaction shall be accounted for.
The Group’s share of net losses of the investee shall be recognized to the extent that the carrying amount
of the long-term equity investment together with any long-term interests that in substance form part of the
investor’s net investment in the investee are reduced to zero. If the Group has to assume additional
obligations, the estimated obligation assumed shall be provided for and charged to the profit or loss as
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
investment loss for the period. Where the investee is making profits in subsequent periods, the Group
shall resume recognizing its share of profits after setting off against the share of unrecognized losses.
If there is debit variation in relation to the long-term equity investments in associates and joint venture
held prior to first adoption of the Accounting Standards for Business Enterprises by the Group on 1
January 2007, the amounts amortized over the original residual term using the straight-line method is
included in the profit or loss for the period.
③Acquisition of minority interests
Upon the preparation of the consolidated financial statements, since acquisition of minority interests
increased of long-term equity investment which was compared to fair value of identifiable net assets
recognized which are measured based on the continuous measurement since the acquisition date (or
combination date) of subsidiaries attributable to the Group calculated according to the proportion of
newly acquired shares, the difference of which recognized as adjusted capital surplus, capital surplus
insufficient to set off impairment and adjusted retained earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, where the parent company disposes of a portion of the long
term equity investments in a subsidiary without a change in control, the difference between disposal cost
and disposal of long-term equity investments relative to the net assets of the subsidiary is charged to the
shareholders’ equity. As for the disposal of a portion of the long term equity investments in a subsidiary
by the parent company leading to lose of control over such subsidiary, it shall be accounted for under the
relevant accounting policies described in Note IV.5-(2) Headed “preparation methods for consolidated
financial statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of
the investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment at equity with the remaining equity interest after disposal also
accounted for using equity method, other comprehensive income previously under owners’ equity shall
be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or
liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment at cost with the remaining equity interest after disposal is also
accounted for at cost, other comprehensive income recognized due to measurement at equity or
recognition and measurement for financial instruments prior to obtaining control over investee shall be
accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or
liability by investee and carried forward to current gains and losses on pro rata basis. The movement of
other owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution of
investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in
preparing separate financial statements, the remaining equity interest which can apply common control or
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
impose significant influence over the investee after disposal shall be accounted for using equity method.
Such remaining equity interest shall be treated as accounting for using equity method since it is obtained
and adjustment was made accordingly. For remaining equity interest which cannot apply common control
or impose significant influence over the investee after disposal, it shall be accounted for using the
recognition and measurement standard of financial instruments. The difference between its fair value and
carrying amount as at the date of losing control shall be included in profit or loss for the current period.
In respect of other comprehensive income recognized using equity method or the recognition and
measurement standard of financial instruments before the Group obtained control over the investee, it
shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee at the time when the control over investee is lost. Movement of other
owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under
net asset of investee accounted for and recognized using equity method) shall be transferred to profit or
loss for the current period at the time when the control over investee is lost. Of which, for the remaining
equity interest after disposal accounted for using equity method, other comprehensive income and other
owners’ equity shall be transferred on pro rata basis. For the remaining equity interest after disposal
accounted for using the recognition and measurement standard of financial instruments, other
comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over investee due to partial disposal of
equity investment by the Group, the remaining equity interest after disposal shall be accounted for using
the recognition and measurement standard of financial instruments. The difference between its fair value
and carrying amount as at the date of losing common control or significant influence shall be included in
profit or loss for the current period. In respect of other comprehensive income recognized under previous
equity investment using equity method, it shall be accounted for in accordance with the same accounting
treatment for direct disposal of relevant asset or liability by investee at the time when equity method was
ceased to be used. Movement of other owners’ equity (excluding net profit or loss, other comprehensive
income and profit distribution under net asset of investee accounted for and recognized using equity
method) shall be transferred to profit or loss for the current period at the time when equity method was
ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions
until the control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”,
each transaction shall be accounted for as a single transaction of disposing equity investment of
subsidiary and loss of control. The difference between the disposal consideration for each transaction and
the carrying amount of the corresponding long-term equity investment of disposed equity interest before
loss of control shall initially recognized as other comprehensive income, and subsequently transferred to
profit or loss arising from loss of control for the current period upon loss of control.
14. Investment real estate
Investment real estate is the real estate that held by the Company for purpose of obtaining rent or capital
appreciation or both purpose received. Investment real estate including rented land use right, land use
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
right held ready for transfer after appreciation and rented buildings etc.
The investment real estate shall be measured initially at the cost. The subsequent spending related to the
investment real estate, if it is very likely for the related economic interest to flow in and its cost can be
reliably measured, shall be included in the cost for the investment real estate. Other subsequent spending
shall be included in the current profit or loss when occurring.
The Company applies the cost model for subsequent measurement of investment real estate, and
depreciates and amortizes it as per the policy consistent to those for the houses and buildings and land use
right.
For details about the methods for impairment testing of the investment real estate and for accrual of
impairment provision, see Note IV 20 “Impairment of long term assets”.
Where property for own use or inventory transfers to investment property, or investment property
transfers to property for own use, carrying value before such transfer shall be taken as book value after
such transfer.
In the event that an investment property is converted to an owner-occupied property, such property shall
become fixed assets or intangible assets since the date of its conversion. In the event that an
owner-occupied property is converted to real estate held to earn rentals or for capital appreciation, such
fixed assets or intangible assets shall become an investment property since the date of its conversion.
Upon the conversion, investment property which is measured at cost is accounted for with the carrying
value prior to conversion, and investment property which is measured at fair value is accounted for with
the fair value as of the conversion date.
If an investment property is disposed of or if it withdraws permanently from use and no economic benefit
will be obtained from the disposal, the recognition of it as an investment property shall be terminated.
When an investment property is sold, transferred, retired or damaged, the amount of proceeds on disposal
of the property net of the carrying amount and related tax and surcharges is recognized in profit or loss
for the current period.
15. Fixed assets
(1) Recognition criteria of fixed assets
Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering
services, renting or business management with useful lives exceeding one fiscal year. Fixed assets are
only recognized when the relevant economic benefits are likely to inflow to the Company and their cost
can be measured reliably. Fixed assets are initially measured at cost taking into account predicted
disposal expenses.
(2) Depreciation method of fixed assets
The initial measurement of a fixed assets shall be made at its cost and consider expected discard expenses
factors alternatives. Accrual depreciation of fixed assets shall be made based on straight-line depreciation
within the service life since the second month, when the fixed assets reached its expected condition for
use. Service life, estimated net residual value and annual depreciation rate for vary fixed assets are as:
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Depreciation term Annual depreciation
Type Residual rate (%)
(year) rate (%)
House and buildings 35 3 2.77
Machinery equipment 12 3 8.08
Transportation 7 3
equipment 13.86
Electronic equipment 7 3 13.86
Office and other 7 3
equipment 13.86
Decoration charge for 10 0 10.00
self-owned houses
Estimated net residual value is the amount obtained from disposal of such fixed assets after estimated
disposal expense deducted, on assumption basis of the fixed assets has full estimated service life and in
an anticipating condition of service life terminated.
(3) Impairment test method and accrual of depreciation reserves for fixed asset
Impairment test method and accrual of depreciation reserves for fixed asset please found in “20.
Impairment of non-current and non-financial assets” in Note IV.
(4) Others
As for the subsequent expenditure related to fixed assets, if the economic benefits related to the fixed
assets is probable to flow into the Company and its cost could be measured reliably, then the expenditure
shall be included in costs of the fixed assets, and the carrying value of the replaced portion shall be
derecognized. Other subsequent expenditures other than this shall be included in profits or losses of the
period when occurred.
The disposal income from disposal, transfer, dumping or damage of fixed assets less its carrying value
and related tax expenses shall be recorded in profits or losses of the period.
The Company, at least, re-reviews the use of life, projected net residual value and depreciation method of
fixed assets at the end of year. For any change of the above factor, it shall be dealt as change of
accounting estimation.
16. Construction-in-progress
Cost of construction-in-progress should recognized by the actual construction costs, including vary
construction costs during the period of construction, the capitalized borrowing costs prior to the expected
conditions for use and other relevant expenses etc. The construction-in-progress should carry forward as
fixed assets after reached the expected conditions for use.
Impairment test method and impairment provision method for the construction-in-progress found in
“20.impairment of non-current/non-financial assets” in Note IV.
17. Borrowing costs
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary
costs incurred in connection with the arrangement of borrowings, and exchange differences arising from
foreign currency borrowings. For borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, when expenditures for the asset and borrowing costs are
being incurred, activities relating to the acquisition, construction or production of the asset that are
necessary to prepare the asset for its intended use or sale have commenced, such borrowing costs shall be
capitalized as part of the cost of that asset; and capitalization shall discontinue when the qualifying asset
is ready for its intended use or sale. Other borrowing costs shall be recognized as expense in the period in
which they are incurred.
Where funds are borrowed for a specific purpose, the amount of interest to be capitalized shall be the
actual interest expense incurred on that borrowing for the period less any bank interest earned from
depositing the borrowed funds before being used into banks or any investment income on the temporary
investment of those funds. Where funds are borrowed for general purpose, the Group shall determine the
amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted
average of the excess amounts of cumulative expenditures on the asset over and above the amounts of
specific-purpose borrowings. The capitalization rate shall be the weighted average of the interest rates
applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to the principal and interest on a specific
purpose borrowing denominated in foreign currency shall be capitalized as part of the cost of the
qualifying asset. Exchange differences related to general-purpose borrowings denominated in foreign
currency shall be included in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc) that necessarily take a
substantial period of time for acquisition, construction or production to get ready for their intended use or
sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a
continuous period of more than 3 months, until the acquisition, construction or production of the
qualifying asset is resumed.
18. Intangible assets
(1) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled
by the Group.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset
shall be recognized as cost of the intangible asset only if it is probable that economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably. Other
expenditures on an item asset shall be charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings
(e.g. plants), related land use right and the buildings shall be separately accounted for as an intangible
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
asset and fixed asset. For buildings and structures purchased, the purchase consideration shall be
allocated among the land use right and the buildings on a reasonable basis. In case there is difficulty in
making a reasonable allocation, the consideration shall be recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any
accumulated impairment loss provision and amortized using the straight-line method over its useful life
when the asset is available for use. Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with an infinite useful life and the amortization
method applied at period-end. A change in the useful life or amortization method used shall be accounted
for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Group
shall review the useful life of the asset. If there is evidence indicating that the period during which the
intangible assets brings in economic benefits to the Group can be predicted, the Group shall estimate the
useful life of that asset and make amortization under the amortization policies applicable to intangible
assets with finite useful life.
(2) Research and development expenditures
Research and development expenditure of the Group was divided into expenses incurred during the
research phase and expenses incurred during the development phase.
Expenses incurred during the research phase are recognized as profit or loss in the current period.
Expenses incurred during the development phase that satisfy the following conditions are recognized as
intangible assets, while those that do not satisfy the following conditions are accounted for in the profit or
loss for the current period:
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.
If the expenses incurred during the research phase and the development phase cannot be distinguished
separately, all development expenses incurred are accounted for in the profit or loss for the current
period.
(3) Intangible assets impairment test method and their impairment provision
The method for impairment test and impairment provision of intangible assets is detailed in Note IV. 20
“Impairment of non-current non-monetary financial asset”.
19. Long-term prepaid expenses
Long-term prepaid expenses refer to the general expenses that occurred but shall be amortized over one
year in reporting period and later period. Long-term prepaid expenses shall amortized by straight-line
method in expected benefit period.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
20. Long-term assets impairment
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of
long-term investments such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint
controlled entities and associates. If there is any evidence indicating that an asset may be impaired,
recoverable amount shall be estimated for impairment test. Goodwill, intangible assets with an indefinite
useful life and intangible assets beyond working conditions will be tested for impairment annually,
regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount,
the impairment provision will be made according to the difference and recognized as an impairment loss.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present
value of the future cash flows expected to be derived from the asset. An asset’s fair value is the price in a
sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in an
active market, fair value shall be determined based on the bid price. If there is neither sale agreement nor
active market for an asset, fair value shall be based on the best available information. Costs of disposal
are expenses attributable to disposal of the asset, including legal fee, relevant tax and surcharges,
transportation fee and direct expenses incurred to prepare the asset for its intended sale. The present value
of the future cash flows expected to be derived from the asset over the course of continued use and final
disposal is determined as the amount discounted using an appropriately selected discount rate. Provisions
for assets impairment shall be made and recognized for the individual asset. If it is not possible to
estimate the recoverable amount of the individual asset, the Group shall determine the recoverable
amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the
financial statements shall be allocated to the asset groups or group of assets benefiting from synergy of
business combination. If the recoverable amount is less than the carrying amount, the Group shall
recognize an impairment loss. The amount of impairment loss shall first reduce the carrying amount of
any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of
other assets (other than goodwill) within the asset group or set of asset groups, pro rata on the basis of the
carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in
respect of the restorable value.
21. Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit, among
which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits,
medical insurance, maternity insurance, work related injury insurance, housing funds, labor unit fee and
education fee, non-monetary benefits, etc. short term staff remuneration actually happened during the
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
accounting period in which staff provides services to the Company is recognized as liability, and shall be
included in current gains and losses or relevant asset cost. Non-monetary benefits are measured at fair
value.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw
plan mainly includes basic pension insurance, unemployment insurance and annuity, and the contribution
payable is included in relevant asset cost or current gains and losses when occurs. Our defined benefit
plan mainly relates to retirement benefits. The Company engaged independent actuary to make estimation
on demographic variables and financial variables under predicted accumulative benefits unit method with
unbiased and consistent actuary assumption, measure liabilities arising from defined benefit plan and
determine vesting periods of various liabilities. On balance sheet date, the Company presented liabilities
arising from defined benefit plan at present value, and recorded service costs as profit or loss for the
period.
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. However, if the compensation for termination of
employment is not expected to be fully paid within 12 months from the reporting period, it shall be
accounted for other long-term staff remuneration.
Employee internal retirement plans is to use the same principle to deal with termination benefits. The
group will pay staff salary, social insurance and others from the date they stop providing service to their
retire-day. This amount shall be included in the current profits and losses (termination benefits), only
when it meets the projected liabilities confirmation conditions.
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.
22. Accrual liability
The obligation pertinent to contingencies shall be recognized as accrual liability when the following
conditions are satisfied simultaneously: (1) That obligation is a current obligation of the Group; (2) It is
likely to cause any economic benefit to flow out of the enterprise as a result of performance of the
obligation; and (3) The amount of the obligation can be measured in a reliable way.
At the balance sheet date, considering matters related to risks, uncertainties and time value of money and
other factors, the expected liabilities are measured in accordance with the best estimate of the necessary
expenses for the performance of the current obligation.
If the expenditure required paying all or part of the expected liabilities was compensated by the third
55
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
party, and the amount of compensation basically can be sure when received, it could be recognized as a
separate asset. But the amount of compensation confirmed couldn’t be more than the book value of the
estimated debts.
23. Income
(1) Income of commodities sales
When the transfer of significant risks and rewards of ownership of the goods to the buyer is done, when
the right of management usually associated with ownership is not reserved, when we didn’t effectively
control the goods sold, the amount of revenue can be measured reliably. The associated economic
benefits are likely to flow into the enterprise. And the related costs incurred or to be incurred can be
measured in a reliable way. Thus we realize sales income.
The company engages in sales of cars, confirming income after the vehicle delivery to customers
according to agreement, payment received or the rights to receive payment.
(2) Income from providing labor
On condition that provision of services trade results can be reliably estimated, we confirm income from
providing labor on the balance sheet date according to the percentage of completion. The Company
calculates the completion schedule through the ratio of the costs incurred taking up of the estimated total
cost.
The results of labor transaction provided can be estimated reliably only when simultaneously: ①the
amount of revenue can be measured reliably; ②the economic interests are likely to flow into the
enterprise; ③the degree of completion can be reliably determined; ④cost occurred and to be occurred
can be reliably measured.
If the service transaction results couldn’t be able to reliably estimated, labor income will be calculated
according to according to amount of labor costs which has occurred and is expected to be t compensated,
and labor costs occurred would be included as expenses of the current period. Labor cost occurred which
cannot be compensated will not be included as revenue.
The Company engages in car repair services, confirming income after the car repair service is delivered
to customers according to agreement, payment received or the rights to receive payment.
(3) Use fee income
According to the relevant contract or agreement, revenue is recognized in accordance with the accrual
basis.
(4) Interest income
Interest income is confirmed in accordance with time and actual interest others make use of the monetary
capital of the group
24. Government subsidy
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the
government, but excluding the capital invested by the government as the owner of the enterprise.
Government subsidies consist of the government subsidies pertinent to assets and government subsidies
pertinent to income. Government grant obtained by the Company for the purpose of constructing or
56
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
otherwise forming long term assets is recognized as government grant related to assets, and other
government grants are recognized as those related to income. If government document fails to identify
specific grantee, government grants will be categorized into government grants related to income or
assets respectively under the below method: (1) in case government document indicates the specific
project applicable to the grant, such categorization shall be made based on the respective proportion of
expenditures to form assets or be recorded as expenses in budget for the specific project. The allocation
proportion will be reviewed on each balance sheet date, and is subject to necessary alteration; (2) in case
government document only indicate general purpose of such grant instead of specific project, the grant
shall be viewed as government grant related to income.
The government subsidy with monetary assets concerned should be measured by the actual received or
receivable amount while non-monetary assets government subsidy measured by fair value; if without
realizable fair value obtained, measured by nominal amount instead. The government subsidy with
nominal amount measured should reckon into current gains and losses.
Government grants are generally recognized when received and measured at the amount actually received,
but are measured at the amount likely to be received when there is conclusive evidence at the end of the
accounting period that the Group will meet related requirements of such grants and will be able to receive
the grants. The government grants so measured should also satisfy the following conditions: (1) the
amount of the grants be confirmed with competent authorities in written form or reasonably deduced
from related requirements under financial fund management measures officially released without material
uncertainties; (2) the grants be given based on financial support projects and fund management policies
officially published and voluntarily disclosed by local financial authorities in accordance with the
requirements under disclosure of government information, where such policies should be open to any
company satisfying conditions required and not specifically for certain companies; (3) the date of
payment be specified in related documents and the payment thereof be covered by corresponding budget
to ensure such grants will be paid on time as specified; and (4)other relevant conditions which shall be
met based on the specific situations of the Company and the subject matter.
Asset-related government subsidies are recognized as deferred income and accounted into the current
gains/losses equally within service life for the relevant assets. The government subsidies pertinent to
incomes, which are used for compensating the related future expenses or losses of the enterprise shall be
recognized as deferred income and should reckoned into current gains/losses in period of when relevant
expenses are recognized; if used for compensating the occurred relevant expenses and losses, reckoned
into current gains/losses directly.
As for the recognized government subsidy needs to return, if there has relevant balance of deferred
incomes, relevant book balance of the deferred income should be written down, and the exceeded part
should included in the current gains/losses; if there has no relevant balance of deferred incomes, reckoned
into current gains/losses directly.
25. Deferred income tax assets and deferred income tax liabilities
(1) The current income tax
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
At the balance sheet date, for the current income tax liabilities (or assets) arising during the current and
previous periods, current income tax should be calculated in line with expected payable (or return)
income tax amount in accordance with the provisions of the tax law. Calculation of the current income
tax expenses on the basis of the computation of taxable income is adjusted to the pre-tax accounting
profit according to the relevant provisions of the tax law.
(2) The deferred income tax assets and deferred income tax liabilities
As for the balance between the book value of some assets and liabilities and the tax base, and those
temporary difference arisen from balance which is not recognized as an asset or liability but whose
difference between the book value and tax base could be calculable in accordance with the provisions of
the tax law, we adopt debt method of balance sheet to recognize deferred income tax assets and deferred
income tax liabilities.
As for taxable temporary differences which is arisen from initial recognition of goodwill, and those
related to initial recognition of assets or liabilities arisen during trade with neither merging nor those
which won’t affect the accounting profit and taxable income (or deductible loss), related deferred tax
liabilities will not be confirmed. In addition, as for temporary differences taxable related to subsidiary
companies, associated enterprises and joint venture investment, if the group is able to control the reversal
time of the temporary difference, and the temporary differences in the foreseeable future probably will
not be reversed, we also could not confirm the deferred income tax liabilities. In addition to the above
condition, the group could confirm all the other deferred income tax liabilities arising from taxable
temporary differences.
As for deductible temporary differences related to initial reorganization of asset or liability arising from
trades with neither merge nor those which won’t affect the accounting profit and taxable income (or
deductible loss), we’ll not recognize relevant deferred income tax assets. In addition, as for deductible
temporary differences related to subsidiary companies, associated enterprises and joint venture
investment, if the temporary differences in the foreseeable future probably will not be reversed, we also
could not confirm the deferred income tax assets. In addition to the above condition, the group could
confirm all the other deferred income tax assets arising from deductible temporary differences within
benchmark of income of taxable deductible temporary differences.
As for deductible loss or tax deduction which to be reversed in the following years, we confirm the
corresponding deferred income tax assets within benchmark of future taxable income to be likely
deducted for deductible loss and tax deduction.
On the balance sheet date, the deferred income tax assets and liabilities are measured according to the
provisions of the tax law, in accordance with the applicable tax rate during related assets to be expected
recovery or related liabilities to be paid off.
At the balance sheet date, we recheck the book value of deferred income tax assets. If in future it is
unlikely to obtain adequate taxable income to offset the benefit of the deferred income tax asset, then we
write down the book value of deferred income tax assets. When it is probable to obtain adequate taxable
income, amount written down shall be reversed.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(3) The income tax expenses
The income tax expense included the current income tax and deferred income tax.
In addition to trades and current income tax and deferred income tax related to projects which are
included in other comprehensive income or directly included in owners’ interest, as well as the book
value whose goodwill arranged in line with deferred income tax arising from enterprises combination, all
the other current income tax and deferred income tax expenses or income will be included in current
profit and loss.
(4) Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to
realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are
offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax
assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the
same taxable entity or different taxable entities which intend either to settle current tax assets and
liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in
which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax
assets and deferred tax liabilities are offset and presented on a net basis.
26. Leasing
Finance lease transfers substantially all the risks and rewards related to the ownership of an asset. Its
ownership may eventually transfer, also may not. While all the other leases are classified as operating
leases.
(1) The Company keeps record of lease business as lessee
Rental expense of operating lease is included in the relevant asset costs or current profits and losses
through the straight-line method during every period. Initial direct costs shall be included in profit or loss
for the current period. Or rent to the actual shall be included in the current profits and losses.
(2) The Company keeps record of lease business as lessor
Rental income of operating lease is included in the relevant asset costs or current profits and losses
through the straight-line method during every period. The larger amount of initial direct costs shall be
capitalized when it is created, and shall be included in the current profits and losses during the lease
period in accordance with same basic as the confirmed amount by stages. The other small amount of
initial direct costs shall be included in the current profits and losses when it’s created. Or rent to the
actual shall be included in the current profits and losses.
(3) Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of
the leased asset and the present value of minimum lease payment at the beginning date of the lease.
Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. In addition, initial direct costs attributable to leased
items incurred during the process of lease negotiation and signing of lease agreement shall be included in
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
the value of leased assets. The balance of minimum lease payment after deducting unrecognized
financing expenses shall be accounted for long-term liability and long-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using
effective interest method during the leasing period. Contingent rent shall be included in profit or loss for
the current period at the time it incurred.
(4) Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum
lease receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be
recorded. The aggregate of minimum lease receivable, initial direct costs and unsecured balance and the
different between their present value shall be recognized as unrealized financing income. The balance of
lease receivable after deducting unrecognized financing income shall be accounted for long-term debt
and long-term debt due within one year.
Unrecognized financing income shall be recognized as financing income for the current period using
effective interest method during the leasing period. Contingent rent shall be included in profit or loss for
the current period at the time it incurred.
27. Other significant accounting policies and accounting estimation
(1) Discontinued operation
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 IV 12 “classified as assets held for sale”.
(2) Repurchase of shares
Share repurchase consideration paid and transaction costs to reduce the owner’s equity, repurchase,
transfer or cancellation of Chenming Paper’s shares, the gains or losses are not recognized.
In respect of transfer of treasury shares, the difference between the actual amount received and the
carrying amount of treasury shares shall be included in capital reserve. When insufficient to dilute, capital
reserve will be offset against the surplus reserve and retained profits. Treasury shares are cancelled at par
value and by the number of shares cancelled to reduce the share capital. The difference between the book
balance and the nominal value of the treasury shares shall be offset against the capital reserve. When
insufficient to dilute, capital reserve will be offset against the surplus reserve and retained profits.
(3) Assets securitization
Partial assets (“trust properties”) of the Company are securitized. Relevant assets are operated by special
purpose vehicles on trust. The special purpose vehicles issue superior assets supporting securities to
investors and the Company holds subordinated assets supporting securities. The subordinated ones are
not allowed to transfer prior to completion of repayment of principal and interest of superior ones. As
assets service provider, the Company provides assets maintenance and normal management,
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
determination of annual assets disposal plan, preparation and implementation of assets disposal plan,
execution of relevant assets disposal agreement and regular preparation of assets service report. In
addition, as liquidity supporting institution, the Company shall provide liquidity support where principal
of superior assets supporting securities aren’t paid in full, to make up shortage of interest or principal.
Trust properties, after being applied to pay trust taxes and associate expenses, are preferentially used to
repay the principal and interests of superior assets supporting securities, and the remaining trust
properties after full settlement of such principal and interests are recorded as income of subordinated
assets supporting securities and vested by the Company. The Company actually keeps nearly all the risks
and rewards of trust properties, thus it doesn’t derecognize trust properties. Besides, the Company owns
effective control over special purpose vehicle which is included in consolidated financial statements.
When applying accounting policies in relation to securitization of financial assets, the Company has
considered the risks and rewards of assets transferred to other entity as well as the level of control that the
Company can exercise in respect of such entity:
- In case that the Company has transferred nearly all the risks and rewards of ownership of financial
assets, the Company derecognizes such financial assets;
- In case that the Company keeps nearly all the risks and rewards of ownership of financial assets, the
Company continues to recognize such financial assets;
- In case that the Company doesn’t transfer or keep nearly all the risks and rewards of ownership of
financial assets, the Company considers whether it owns control over such financial assets. If the
Company maintains no control, it will derecognize such assets, and recognize the rights and liabilities
occurred or kept during transfer as assets or liabilities respectively. If the Company maintains control, it
will recognize such financial assets based on the continuous involvement level in respect of such assets.
28. Changes of major accounting policies and accounting estimation
(1) Changes of accounting policy
No accounting policy changed in reporting period.
(2) Changes of accounting estimate
No accounting estimate changed in reporting period.
29. Major accounting judgment and estimate
The Company need make judgment, estimation and hypothesis to book value of those unaccountable
items in sheet due to inner uncertainties of operating activities in the process of using accounting policies.
These judgments, estimates and assumptions are made in line with the Company's past management
experience, and in consideration of other relevant factors. These judgments, estimates and assumptions
will affect disclosure of amount of income, expenses, assets and liabilities as well as contingent liability
on the balance sheet day. However, the uncertainties in these estimates may cause significant adjustments
to book value of those asset or liability affected in the future.
The Company rechecks regularly the judgment, estimation and hypothesis based on sustainable
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
management. As for a change affecting only the current period, the amount shall be confirmed only in the
current period; for those not only affecting the current but the future, the amount shall be confirmed in
the current and future period.
At the balance sheet date, the Company needs to determine amount of items of the financial statements,
estimation and hypothesis shown as the following important areas:
(1) Provision for bad debts
The Company accounts for the allowance for bad debt losses according to the receivable accounting
policies. Accounts receivable is the valuation of accounts receivable can be recovered based on.
Identification of devaluation of accounts receivable needs judgments and estimates of management level.
Difference between actual results and the original estimates impact reversal of the book value accounts
receivable and accounts receivable for provision for bad debts during the estimation was changing.
(2) Provision of inventory devaluation
According to the inventory accounting policies, the Company shall accrue inventory devaluation
provision as for inventory whose cost is higher than net realizable and those obsolete or unmarketable in
accordance with the lower one in cost and net realizable value. Write-down of inventories to net
realizable value is to assess the salability and net amount of prospect realization. Identification of
inventory impairment requires management’s judgment and estimation after their obtaining conclusive
evidence and consideration of the purpose for holding inventories, events effects occurring after balance
sheet date. The difference between actual results and original estimates will affect the reversal of book
value and devaluation provision of inventories during the estimation was changing.
(3) Financial assets available for sale
In respect of impairment of available-for-sale financial assets, whether impairment loss shall be
recognized in income statement significantly depends on the judgments and assumptions of the
management. While making judgments and assumptions, the Company shall assess the excess of cost of
the investee’s identifiable net assets attributable to the investment over fair value and the duration, and
financial condition and short term business outlook of the investee, including industry situation, technical
reform, credit rating, default rate and risks from counterparties.
(4) Long-term provision for asset impairment
The Company has checked if there is any sign that the long-term asset except for the financial assets may
have the impairment at the balance sheet date. For the intangible assets with uncertain service life, in
addition to the annual impairment test, make the impairment test when it has signs of impairment.
Proceed with the impairment test when there is any sign indicates that the book amounts of other
long-term assets except for the financial assets are uncollectible
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher one
between the net amount after subtracting the disposal costs from the fair value and the present value of
the future cash flow, it indicates impairment occurs.
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
The net amount after subtracting the disposal costs from the fair value is determined by subtracting the
incremental costs directly attributable to this disposal of assets from the sales agreement price similar to
assets in fair dealing or the observable market price.
When predicting the present value of future cash flows, it is required to make significant judgments to the
output, selling price and related operating expenses of this asset or group of assets and the discount rate
used for calculating the present value. The Company shall adopt all available related data when
predicting the recoverable amounts, including making predictions about the relevant output, selling price
and related operating expenses based on reasonable and supportable assumptions.
(5) Depreciation and amortization
For the investment real estate, fixed assets and intangible assets, the Company takes a straight-line
depreciation and amortization within service life in consideration of its residual value. The Company
regularly review service life, thus determine the depreciation and amortization amount in each reporting
period. Life is determined based on past experience of similar assets and technology update is expected.
If the previous estimate changes, we will adjust depreciation and amortization expense in future periods.
(6) The deferred income tax assets
Within the limits that it is very likely to have sufficient taxable profits to offset losses, the Company
confirms deferred income tax assets using all unused tax losses. This requires the management to use a
lot of judgment to estimate the time and amount of future taxable profits, combined with the tax planning
strategy, thus confirm the amount of deferred income tax assets.
(7) The income tax
During ordinary course of business, uncertainty exists in final tax treatment and calculation of a part of
trading. Whether part of the project is in pre tax expenses requires approval of tax authorities. If the final
confirmation of these tax matters differs from an initial estimate, the difference will affect current income
tax and deferred income tax during the final period.
(8) Accrual liabilities
The Company estimates and accrues corresponding provision for product quality guarantee, expected
contract loss, penalty for late delivery and others in accordance with terms of the contract, existing
knowledge and experience. When such contingencies has formed a present obligation, and the
performance of the current obligation is likely to lead to the outflow of economic benefits of the
Company, the Company recognizes the best estimate of required expense when performing current
obligation as accrual liability. The recognition and measurement of debt is largely dependent on the
judgment of management. In the process of judgment the Company needs to assess the contingent risks,
uncertainties and money and the time value and other factors.
V. Taxation
1. Main tax and tax rate
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Type Tax rate
Calculate and pay added-value tax for rent and water fee income
respectively by 5% and 3% charge rate; automobile and parts sales,
automobile maintenance, jewelry retail, electric charge by 17%, and
VAT *1 calculate output tax for property management fee by 6% tax rate, and
calculate and pay added-value tax by the balance after deducting the
input tax allowed to be deducted in the current period.
The property management fee and rental before 1 May 2016 will paying
Operation tax
business tax by 5% of the turnover
Consumption duty 5% of the sales revenue of jewelry taxable consumer goods
City maintaining &
Calculated and paid on 7% of the turnover tax actually paid
construction tax
Education surcharge Calculated and paid on 3% of the turnover tax actually paid
Local education surcharge Calculated and paid on 2% of the turnover tax actually paid
Calculated and paid on 25% of the taxable income amount and tax by
Corporation income tax *2
the levy rate
* 1. The Company's property management fee income and property lease were originally levied the
business tax by 5% tax rate, which was changed to levy the VAT since May 1, 2016 in accordance with
the relevant provisions of the Notice on Comprehensively Piloting the Change of Business Tax to VAT
(CS No. [2016] 36), the tax rate of property management fee was 6%, and the property lease needed to
pay VAT by 5% tax rate.
* 2. The Company and its subsidiaries in addition to Shenzhen New Yongtong Dongxiao Vehicle
Inspection Co., Ltd. should be levied the tax by the approved collection rate, i.e. by 25% tax rate in 2017.
VI. Enterprise consolidation and consolidated financial statements
Unless otherwise stated, the follow notes (including the items of financial statement of the Company),
year-begin refers to 1st January 2017 while period-end refers to 30th June 2017.
1. Monetary fund
Item Period-end balance Balance at year-begin
Stock cash 67,334.26 96,167.91
Bank deposits: 153,165,457.62 218,401,472.19
Total 153,232,791.88 218,497,640.10
As of 30 June 2017, the monetary fund with right of use limited amounting to 30,000,000.00 Yuan, refers to the structured
deposit with 3 months. Same deposit at last year has balance of 40,000,000.00 Yuan.
2. Accounts receivable
(1) Accounts receivable by category
Period-end balance
Category
Book balance Bad debt reserve Book value
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Accrual ratio
Amount Ratio (%) Amount
(%)
Account receivable with single
significant amount and
22,512,414.52 44.13 22,512,414.52 100.00
withdrawal bad debt provision
separately
Receivables with bad debt
2,221,154.9
provision accrual by credit 2,221,154.93 4.35
3
portfolio
Accounts with single significant
amount and bad debts provision 26,282,070.64 51.52 26,282,070.64 100.00
accrued individually
2,221,154.9
Total 51,015,640.09 100.00 48,794,485.16 95.65
3
(Cont.)
Balance at year-begin
Book balance Bad debt reserve
Category
Accrual ratio Book value
Amount Ratio (%) Amount
(%)
Account receivable with single
significant amount and
22,512,414.52 46.03 22,512,414.52 100.00
withdrawal bad debt provision
separately
Receivables with bad debt
provision accrual by credit 113,736.64 0.23 113,736.64
portfolio
Accounts with single significant
amount and bad debts provision 26,282,070.64 53.74 26,282,070.64 100.00
accrued individually
Total 48,908,221.80 100.00 48,794,485.16 99.77 113,736.64
① Account receivable with single significant amount and withdrawal bad debt
provision separately at period end
Period-end balance
Account receivable(units) Account Bad debt Accrual
Accrual reasons
receivable reserve ratio
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Period-end balance
Account receivable(units) Account Bad debt Accrual
Accrual reasons
receivable reserve ratio
Shenzhen Jinlu Industry and Trade 9,846,607.00 9,846,607.00 100.00 Has greater uncertainty in
Co., Ltd. collection
Guangdong Zhanjiang Sanxing 4,060,329.44 4,060,329.44 100.00 Not expected to collected
Auto Service Co., Ltd. due to long account age
2,380,760.40 2,380,760.40 100.00 Not expected to collected
Wang Changlong due to long account age
Huizhou Jiandacheng Daoqiao 2,021,657.70 2,021,657.70 100.00
Less likely to collection
Engineering Company
1,862,000.00 1,862,000.00 100.00 Not expected to collected
Guangdong Materials Group Corp due to long account age
1,191,059.98 1,191,059.98 100.00 Not expected to collected
Jiangling Automobile Factory due to long account age
1,150,000.00 1,150,000.00 100.00 Not expected to collected
Yangjiang Auto Trade Co., Ltd. due to long account age
Total 22,512,414.52 22,512,414.52 100.00
② Account receivable provided for bad debt reserve under aging analysis method in
the groups
Period-end balance
A/C age
Account receivable Bad debt reserve Accrual ratio (%)
Within 1 year 2,221,154.93
Total 2,221,154.93
(2)Bad debt provision accrual collected or switch back
Bad debt provision accrual was 0 Yuan; the amount collected or switches back amounting to 0 Yuan.
(3)Top 5 account receivables at ending balance by arrears party
Proportio
Relationship n in total
Name of the company with the Amount Terms account
Company receivabl
es (%)
Non-related 9,846,607.0 Over 3 19.30
Shenzhen Jinlu Industry and Trade Co., Ltd.
party 0 years
Guangdong Zhanjiang Sanxing Auto Service Non-related 4,060,329.4 Over 3 7.96
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深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Co., Ltd. party 4 years
Non-related 2,380,760.4 Over 3 4.67
Wang Changlong
party 0 years
Huizhou Jiandacheng Daoqiao Engineering Non-related 2,021,657.7 Over 3 3.96
Company party 0 years
Guangdong Materials Group Corp Non-related 1,862,000.0 Over 3 3.65
party 0 years
20,171,354. 39.54
Total
54
(4)Account receivable derecognition due to financial assets transfer
The Company has no account receivable derecognition due to financial assets
transfer in the Period.
(5)Assets and liabilities resulted by account receivable transfer and continues
involvement
The Company has no assets and liabilities resulted by account receivable transfer and
continues involvement in the Period.
3. Advance payment
(1)Advance payment by age
Period-end balance Balance at year-begin
A/C age
Amount Ratio (%) Amount Ratio (%)
Within 1 year 8,627,722.80 98.37 8,259,644.18 97.90
1-2 years 68,400.90 0.81
2-3 years 68,400.90 0.78
Over 3 years 74,903.87 0.85 108,623.27 1.29
Total 8,771,027.57 100.00 8,436,668.35 100.00
(2)Top 5 advance payment at ending balance by prepayment object
Total year-end balance of top five advance payment by prepayment object amounting to
8,729,227.63Yuan, takes 99.52 percent of the total advance payment at year-end.
4. Interest receivable
(1) Interest receivable by category
Item Period-end balance Balance at year-begin
Structured deposit 118,000.00 172,055.56
Total 118,000.00 172,055.56
5. Other accounts receivable
(1) Other accounts receivable by category
67
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Period-end balance
Book balance Bad debt reserve
Category
Accrual ratio Book value
Amount Ratio (%) Amount
(%)
Other account receivable with
single significant amount and
39,194,955.77 55.23 39,194,955.77 100.00
withdrawal bad debt provision
separately
Other receivables with bad debt
provision accrual by credit 21,162,072.06 29.82 3,653,285.18 17.26 17,508,786.88
portfolio
Other accounts with single
significant amount and bad debts 10,614,976.75 14.95 10,614,976.75 100.00
provision accrued individually
Total 70,972,004.58 100.00 53,463,217.70 75.33 17,508,786.88
(Cont.)
Balance at year-begin
Book balance Bad debt reserve
Category
Accrual ratio Book value
Amount Ratio (%) Amount
(%)
Other account receivable with
single significant amount and
39,200,840.68 55.76 39,200,840.68 100.00
withdrawal bad debt provision
separately
Other receivables with bad debt
provision accrual by credit 20,423,595.69 29.05 3,837,208.24 18.79 16,586,387.45
portfolio
Other accounts with single
significant amount and bad debts 10,678,096.75 15.19 10,678,096.75 100.00
provision accrued individually
Total 70,302,533.12 100.00 53,716,145.67 76.41 16,586,387.45
① Other receivable with single significant amount and withdrawal bad debt provision
separately at end of period
68
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Period-end balance
Accr
Account receivable(units) Account Bad debt
ual Accrual reasons
receivable reserve
ratio
9,832,956.37 The Company has revoked,
Zhongqi South China Auto Sales
9,832,956.37 100.00 and estimated of uncollectible
Company
amount
7,359,060.75 The Company has revoked,
South Industry & TRADE Shenzhen
7,359,060.75 100.00 and estimated of uncollectible
Industrial Company
amount
5,000,000.00 Win a lawsuit, no executable
Shenzhen Zhonghao (Group) Co., Ltd. 5,000,000.00 100.00
assets from adversary
Gold Beili Electrical Appliances 2,706,983.51 Not expected to collected due
2,706,983.51 100.00
Company to long account age
2,418,512.90 The Company has revoked,
Shenzhen Xinxingtai Trade Co., Ltd. 2,418,512.90 100.00 and estimated of uncollectible
amount
Shenzhen Petrochemical Group 1,912,849.63 1,912,849.63100.00 Less likely to collection
1,212,373.79 The Company has revoked,
Shenzhen SDG Huatong Industrial
1,212,373.79 100.00 and estimated of uncollectible
Package Co., Ltd.
amount
1,023,560.00 The Company has revoked,
Shenzhen Jinhe Standard Mould Co.,
1,023,560.00 100.00 and estimated of uncollectible
ltd.
amount
930,000.00 The company has revoked, and
Heyuan Dongfeng Technology
930,000.00 100.00 estimated of uncollectible
Service station
amount
906,024.60 Not expected to collected due
Shenzhen Nuoer Electrical Co., Ltd. 906,024.60 100.00
to long account age
Shenzhen South Great Wall 819,460.91 Has greater uncertainty in
819,460.91 100.00
Investment Holding Co., Ltd. collection
660,790.09 The Company has revoked,
Shenzhen Xiandao New Materials
660,790.09 100.00 and estimated of uncollectible
Company
amount
69
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Shenzhen Baodong Property 609,773.00 Not expected to collected due
609,773.00 100.00
Development Company to long account age
3,802,610.22 Not expected to collected due
Others 3,802,610.22 100.00
to long account age
Total 39,194,955.77 39,194,955.77100.00
② In combination, other accounts receivable whose bad debts provision was accrued
by age analysis
Period-end balance
A/C age
Other accounts receivable Bad debt reserve Accrual ratio (%)
Within 1 year 12,424,797.34
1-2 years 1,537,777.10 76,888.86 5.00
2-3 years 77,841.64 15,568.33 20.00
Over 3 years 7,121,655.98 3,560,827.99 50.00
Total 21,162,072.06 3,653,285.18 17.26
(2)Bad debt provision accrual collected or switch back
The amount of the allowance for bad debts is 189,620.97 yuan.; and the bad debt reserve reduced
63,307.00 Yuan for subsiddiary transfer – Shenzhen SDG Tellus Property Management Co., Ltd.
(3)Classification of other receivables by nature
Nature Closing book balance Book balance at year-begin
Intercourse accounts of related units 5,003,096.14 4,960,425.05
receivable
Other intercourse 65,968,908.44 65,342,108.07
Total 70,972,004.58 70,302,533.12
(4)Top 5 other receivables at ending balance by arrears party
Ratio in total ending Period-end
Period-end A/C balance of other balance of
Name of the company Nature
balance age receivables(%) bad debt
reserves
Zhongqi South China Auto SalesIntercourse 9,832,956.37 Over 3 13.85 9,832,956.37
Company funds years
South Industry & TRADEIntercourse 7,359,060.75 Over 3 10.37 7,359,060.75
Shenzhen Industrial Company funds years
Shenzhen Zhonghao (Group)Intercourse 5,000,000.00 Over 3 7.05 5,000,000.00
70
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Ratio in total ending Period-end
Period-end A/C balance of other balance of
Name of the company Nature
balance age receivables(%) bad debt
reserves
Co., Ltd. funds years
Shenzhen Kaifeng SpecialIntercourse Over 3 6.22
Vehicles Industry Co., Ltd. funds 4,413,728.50 years 2,206,864.25
Gold Beili Electrical AppliancesIntercourse 2,706,983.51 Over 3 3.81 2,706,983.51
Company funds years
Total 29,312,729.13 41.30 27,105,864.88
6. Inventory
(1) Inventory classification
Period-end balance
Item
Book balance Depreciation reserve Book value
Raw materials 15,301,274.91 14,771,812.17 529,462.74
Low value consumable
Stock products 22,324,176.80 14,863,840.41 7,460,336.39
Total 37,625,451.71 29,635,652.58 7,989,799.13
(Cont.)
Balance at year-begin
Item
Book balance Depreciation reserve Book value
Raw materials 15,237,602.35 14,771,812.17 465,790.18
Low value consumable 855.67 855.67
Stock products 25,436,110.25 14,863,840.41 10,572,269.84
Total 40,674,568.27 29,635,652.58 11,038,915.69
(2) Inventory depreciation reserve
Increase in
Decrease in the current
the current
Balance at period Period-end
Item period
year-begin balance
Accrua Othe Switch back or
Other
l r write-off
Raw materials 14,771,812.17 14,771,812.17
Low value
71
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
consumable
Stock products 14,863,840.41 14,863,840.41
Total 29,635,652.58 29,635,652.58
(3)Accrual basis for inventory depreciation reserve and reason of switch back or
write-off in the year
Reasons of
Reasons of write-off for
Accrual basis for inventory switch-back for
Item inventory falling price
impairment provision inventory falling
reserves
price reserves
The products with
Its net realizable value is
Stock products depreciation reserves
lower than cost of inventory
accrual have been sell
7. Other current assets
Item Period-end balance Balance at year-begin
Input tax ready for deducted 823,991.93 123,901.32
Financial products 185,000,000.00 90,000,000.00
Total 185,823,991.93 90,123,901.32
8. Financial assets available for sale
(1) Particular about financial assets available for sale
Period-end balance Balance at year-begin
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Equity instrument
18,302,857.20 8,126,240.00 10,176,617.20 18,605,225.77 8,126,240.00 10,478,985.77
available for sale
Including: measured by
fair value
Measured by cost 18,302,857.20 8,126,240.00 10,176,617.20 18,605,225.77 8,126,240.00 10,478,985.77
Total 18,302,857.20 8,126,240.00 10,176,617.20 18,605,225.77 8,126,240.00 10,478,985.77
72
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(2)Financial assets available for sale measured by cost at period-end
Book balance Depreciation reserves Ratio of
Increas Increas share-holdin
Decreas
The invested entity ed in Decreased ed in g in
At year-begin At period-end At year-begin ed in At period-end
the in the year the invested
the year
year year entity (%)
China Pudong Development Machinery
10,176,617.20 10,176,617.20 4.94
Industry Co., Ltd.
Shenzhen Jingwei Industrial Co., Ltd. 4,000,000.00 4,000,000.00 4,000,000.00 4,000,000.00 12.50
Shenzhen (Masco) Co., Ltd. 825,000.00 825,000.00 825,000.00 825,000.00 7.00
Wuhan Weite Hotel 640,000.00 640,000.00 640,000.00 640,000.00
Shenzhen Petrochemical Group 700,000.00 700,000.00 700,000.00 700,000.00 10 万股
Shenzhen Shuntian Electro car Technology
600,000.00 600,000.00 600,000.00 600,000.00 11.10
Development Co., Ltd.
Shenzhen Jinhe Standard Mould Co., ltd. 453,440.00 453,440.00 453,440.00 453,440.00 15.00
Shenzhen China Auto Training Center 600,000.00 600,000.00 600,000.00 600,000.00 6.25
Dratini 162,000.00 162,000.00 162,000.00 162,000.00 6.25
Shenzhen Bisike Machinery Transport Co., Ltd. 302,368.57 302,368.57
Rishen International Co., Ltd. 145,800.00 145,800.00 145,800.00 145,800.00 7.50
Total 18,605,225.77 302,368.57 18,302,857.20 8,126,240.00 8,126,240.00
73
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(3)Changes of impairment in Year
Equity instrument Debt instrument
Type Total
available for sale available for sale
Balance of impairment accrual at
year-begin 8,126,240.00 8,126,240.00
Accrual
Including: transfer-in from other
comprehensive income
Decreased in the year
Including: switch back due to fair
value rebound at period-end
Balance of impairment accrual at
year-end 8,126,240.00 8,126,240.00
9. Held-to-maturity investment
(1) Held-to-maturity investment
Period-end balance Balance at year-begin
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Treasury 20,000.00 20,000.00 20,000.00 20,000.00
Total 20,000.00 20,000.00 20,000.00 20,000.00
10. Long-term account receivable
(1) Long-term account receivable
Period-end balance Balance at year-begin Rang
e of
Item Depreciatio Book Depreciation Book disco
Book balance Book balance
n reserves value reserves value unt
rate
Other:
Essentially constitute a
long-term equity for net 2,179,203.6
2,179,203.68 2,179,203.68 2,179,203.68
investment of invested 8
company
Including: Shenzhen
2,179,203.6
Tellus Auto Service 2,179,203.68 2,179,203.68 2,179,203.68
8
Chain Co., Ltd. *
2,179,203.6
Total 2,179,203.68 2,179,203.68 2,179,203.68
8
* Notes: the Company is an associate of the Company, thus the non-operating receivables by the Company substantially
74
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
constitute net investments in investee. Till the end of this reporting period, the total liabilities exceeded total assets, and
owners’ equity was negative. Carrying value of the long term equity investment in the company has been less to nil. This
company ceased operation in this reporting period. Considering the actual conditions of this company, the Company made
bad debt provision in full for this long term receivables.
11. Long-term equity investment
+,-
Other
Balance at Capit Investment compreh
The invested entity Other
Additional al gains ensive
year-begin equity
investment reduc recognized income
change
tion under equity adjustme
nt
I. Joint venture
Shenzhen Tellus Gman Investment Co., 57,180,913.33
-3,304,695.19
Ltd
Shenzhen Tellus Hang Investment Co., 10,583,444.88
140,991.05
Ltd.
Subtotal 67,764,358.21 -3,163,704.14
II. Associated enterprise
Shenzhen Xinglong Machinery Mould Co., 15,878,254.74 4,219,677.4
-2,904,933.36
Ltd. 5
Shenzhen Tellus Auto Service Chain Co.,
Ltd.
Shenzhen Zung Fu Tellus Auto Service 75,715,480.75
8,604,432.54
Co., Ltd.
Shenzhen Auto Industry Imp& Exp Co., 8,427,067.20
-319,129.32
Ltd.
Shenzhen Dongfeng Auto Co., Ltd. 35,476,407.97 -2,485,088.04
Shenzhen New Yongtong Technology Co., 368,948.94
14,812.97
Ltd.
Shenzhen New Yongtong Oil Pump 127,836.59
Environment Protection Co., Ltd.
Shenzhen New Yongtong Consultant Co., 41,556.83
Ltd.
Shenzhen New Yongtong Auto Service 2,790.25
-2,790.25
Co., Ltd.
Shenzhen New Yongtong Dongxiao Auto
75
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
+,-
Other
Balance at Capit Investment compreh
The invested entity Other
Additional al gains ensive
year-begin equity
investment reduc recognized income
change
tion under equity adjustme
nt
Parts Sales Co., LTd.
Shenzhen Yongtong Xinda Inspection
Equipment Co., Ltd.
Hunan Changyang Industrial Co., Ltd.*① 1,810,540.70
Shenzhen Jiecheng Electronic Co., Ltd*① 3,225,000.00
Shenzhen Xiandao New Materials 4,751,621.62
Company*①
China Auto Industrial Shenzhen Trading 400,000.00
Company*①
Shenzhen General Standard Co., Ltd.*① 500,000.00
Shenzhen Huoju Spark Plug Industry Co., 17,849.20
Ltd.
Zhongqi South China Auto Sales 2,250,000.00
Company*①
Shenzhen Bailiyuan Power Supply Co., 1,320,000.00
Ltd*①
Shenzhen Yimin Auto Trading Co., 200,001.10
Ltd*①
150,513,355.8 4,219,677.4
Subtotal 2,907,304.54
9 5
III. Other equity investment
Shenzhen Hanli Hi-Tech Ceramics Co., 1,956,000.00
Ltd.*②
Shenzhen South Auto Maintenance 6,700,000.00
Center*②
Subtotal 8,656,000.00
226,933,714.1 4,219,677.4
Total -256,399.60
0 5
(Cont.)
+,- Period-end Period-end
The invested entity
Cash dividend Accrua Oth balance balance
76
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
or profit l er depreciation
announced to provisi reserves
issued on
I. Joint venture
Shenzhen Tellus Gman Investment Co., Ltd 53,876,218.14
Shenzhen Tellus Hang Investment Co., Ltd. 10,724,435.93
Subtotal 64,600,654.07
II. Associated enterprise
Shenzhen Xinglong Machinery Mould Co., Ltd. 17,192,998.83
Shenzhen Tellus Auto Service Chain Co., Ltd.
Shenzhen Zung Fu Tellus Auto Service Co., Ltd. 9,100,000.00 75,219,913.29
Shenzhen Auto Industry Imp& Exp Co., Ltd. 8,107,937.88
Shenzhen Dongfeng Auto Co., Ltd. 32,991,319.93
Shenzhen New Yongtong Technology Co., Ltd. 383,761.91
Shenzhen New Yongtong Oil Pump 127,836.59 127,836.59
Environment Protection Co., Ltd.
Shenzhen New Yongtong Consultant Co., Ltd. 41,556.83 41,556.83
Shenzhen New Yongtong Auto Service Co., Ltd.
Shenzhen Xinyongtong Dongxiao Auto Parts
Sales Co., LTd.
Shenzhen Yongtong Xinda Inspection Equipment
Co., Ltd.
Hunan Changyang Industrial Co., Ltd.*① 1,810,540.70 1,810,540.70
Shenzhen Jiecheng Electronic Co., Ltd*① 3,225,000.00 3,225,000.00
Shenzhen Xiandao New Materials Company*① 4,751,621.62 4,751,621.62
China Auto Industrial Shenzhen Trading 400,000.00 400,000.00
Company*①
Shenzhen General Standard Co., Ltd.*① 500,000.00 500,000.00
Shenzhen Huoju Spark Plug Industry Co., Ltd. 17,849.20 17,849.20
Shenzhen Zhongqi South China Auto Sales 2,250,000.00 2,250,000.00
Company*①
Shenzhen Bailiyuan Power Supply Co., Ltd*① 1,320,000.00 1,320,000.00
Shenzhen Yimin Auto Trading Co., Ltd*① 200,001.10 200,001.10
Subtotal 9,100,000.00 148,540,337.88 14,644,406.04
III. Other equity investment
Shenzhen Hanli Hi-Tech Ceramics Co., Ltd.*② 1,956,000.00 1,956,000.00
Shenzhen South Auto Maintenance Center*② 6,700,000.00 6,700,000.00
77
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Subtotal 8,656,000.00 8,656,000.00
Total 9,100,000.00 221,796,991.95 23,300,406.04
Note: *①Industry and commerce registration of the enterprise have been revoked, the long-term equity investment for the
above mentioned enterprise have accrual for depreciation reserves in total.
Note: more details of *②Other equity investment can be seen in Note VIII-1 “Equity of subsidiaries”.
12. Investment real estate
(1) Investment real estate measured at cost
Item House and building Total
I. Original book value
1、Balance at year-begin 160,870,656.51 160,870,656.51
2、Increase in the current period 446,468.61 446,468.61
(1) Newly increased 446,468.61 446,468.61
3、Decrease in the current period
(1) Disposal
4、Period-end balance 161,317,125.12 161,317,125.12
II. Accumulated depreciation and accumulated amortization
1、Balance at year-begin 83,268,407.98 83,268,407.98
2、Increase in the current period 2,573,710.09 2,573,710.09
(1) Accrual or amortization 2,573,710.09 2,573,710.09
3、Decrease in the current period
(1) Disposal
4、Period-end balance 85,842,118.07 85,842,118.07
III.Depreciation reserves
IV. Book value
1. Ending book value 75,475,007.05 75,475,007.05
2. Book value at year-begin 77,602,248.53 77,602,248.53
(2) Investment real estate with ownership restricted
Up to 30 June 2017, investment real estate with ownership restricted found more in Note VI-47
(3) Investment real estate with certificate of title im-completed
There are no investment real estate with certificate of title im-completed up to 30 June 2017
78
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
13. Fixed assets
(1) Fixed assets
Machinery Transportation Office and other Renovation costs
Item House and buildings equipment equipment Electronic equipment equipment of self-owned Total
housing
I. Original book value
1. Balance at year-begin 271,459,922.00 17,638,367.72 6,214,055.64 12,659,097.05 4,757,968.36 3,056,469.95 315,785,880.72
2.Increase in the current period 85,351.12 117,116.96 304,213.21 506,681.29
(1) Purchase 85,351.12 117,116.96 304,213.21 506,681.29
3. Decrease in the current period 446,468.61 640,163.70 682,922.47 1,434,114.23 938,407.83 358,757.96 4,500,834.80
(1) Disposal or scrapping 540,922.47 315,954.21 856,876.68
(2)Other 446,468.61 640,163.70 142,000.00 1,118,160.02 938,407.83 358,757.96 3,643,958.12
4. Period-end balance 271,013,453.39 16,998,204.02 5,616,484.29 11,342,099.78 4,123,773.74 2,697,711.99 311,791,727.21
II. Accumulated depreciation
1. .Balance at year-begin 147,097,591.99 13,133,465.78 4,438,240.34 9,693,651.39 3,938,766.93 2,775,087.22 181,076,803.65
2. Increase in the current period 3,570,866.64 160,257.03 202,401.02 282,664.57 87,773.96 4,303,963.22
(1) Accrual 3,570,866.64 160,257.03 202,401.02 282,664.57 87,773.96 4,303,963.22
3. Decrease in the current period 322,215.25 344,476.51 569,114.81 985,065.84 552,467.14 358,757.96 3,132,097.51
(1) Disposal or scrapping 500,480.22 36,915.82 25,066.35 562,462.39
(2)Other 322,215.25 344,476.51 68,634.59 948,150.02 527,400.79 358,757.96 2,569,635.12
4. Period-end balance 150,346,243.38 12,949,246.30 4,071,526.55 8,991,250.12 3,474,073.75 2,416,329.26 182,248,669.36
79
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Machinery Transportation Office and other Renovation costs
Item House and buildings equipment equipment Electronic equipment equipment of self-owned Total
housing
III.Depreciation reserves
1. Balance at year-begin 3,555,385.70 1,552,359.79 6,165.00 17,984.71 69,562.98 281,382.73 5,482,840.91
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal or scrapping
4. Period-end balance 3,555,385.70 1,552,359.79 6,165.00 17,984.71 69,562.98 281,382.73 5,482,840.91
IV. Book value
1. Ending book value 117,111,824.31 2,496,597.93 1,538,792.74 2,332,864.95 580,137.01 124,060,216.94
2. Book value at year-begin 120,806,944.31 2,952,542.15 1,769,650.30 2,947,460.95 749,638.45 129,226,236.16
Note: Depreciation in this period amounting to RMB 4,303,963.22. Transfer from construction in progress to fixed assets amounting as RMB 0.00 in this year.
Decrease of fixed assets in the period mainly due to the equity of subsidiary Shenzhen SDG Tellus Property Management Co., Ltd. transfer in the period
80
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(2) Temporary idle fixed asset
The Company had no temporary idle fixed asset end as 30 June 2017.
(3) Certificate of title un-completed
Item Book value Reasons
1,205,848.98 A failure to carry out the property
Shuibei Zhongtian Comprehensive certificate is caused by issues rooted
Build in history
Hostel of People North Road 5,902.41 A failure to carry out the property
certificate is caused by issues rooted
in history
Songquan Apartment (mixed) 39,164.42 A failure to carry out the property
certificate is caused by issues rooted
in history
Tellus Building underground parking 10,788,443.42 Parking lot is un-able to carried out
the certificate
Tellus Building transformation layer 1,930,274.00 Un-able to carried out the certificate
Trade department warehouse 96,789.01 A failure to carry out the property
certificate is caused by issues rooted
in history
Warehouse 993,456.97 A failure to carry out the property
certificate is caused by issues rooted
in history
1#,2# and 3-5/F 3# plant of Taoyuan 4,418,379.76 A failure to carry out the property
Road certificate is caused by issues rooted
in history
41,054,829.73 A failure to carry out the property
certificate is caused by issues rooted
Yongtong Building in history
16# Taohua Garden 1,803,617.16 A failure to carry out the property
certificate is caused by issues rooted
in history
Automotive building 18,830,674.99 A failure to carry out the property
certificate is caused by issues rooted
in history
81
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Book value Reasons
1,123,843.41 A failure to carry out the property
First floor of Bao’an certificate is caused by issues rooted
commercial-residence build in history
5,451,530.91 A failure to carry out the property
certificate is caused by issues rooted
Nuclear Office build in history
Total 87,742,755.17
(4) Fixed assets with restriction in ownership
Up to 30 June 2017, more details of fixed assets with restriction in ownership can be seen in Note VI-47.
14. Construction in process
(1) Basic situation of construction in process
Period-end balance Balance at year-begin
Item Book Depreciation Book Depreciation
Book value Book value
balance reserves balance reserves
Shuibei Jewelry 354,723,23 354,723,23 343,365,31 343,365,31
Building etc. 1.16 1.16 3.46 3.46
354,723,23 354,723,23 343,365,31 343,365,31
Total
1.16 1.16 3.46 3.46
(2) Changes of major projects under construction
Transfer to Other
Balance at Increased in Period-end
Item Budget fixed assets in decrease in
year-begin the year balance
the year the year
Shuibei 343,365,313.46 10,446,845.11 353,812,158.57
360.96
Jewelry
Million Yuan
Building
Total 343,365,313.46 10,446,845.11 353,812,158.57
82
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(Cont.)
Proportion of Including:
Accumulated Interest
project interest Capital
amount of capitalization
Item Progress capitalized
interest rate of the year
investment in amount of the source
capitalization (%)
year
budget (%)
Shuibei Jewelry 98.02% 98.02% 15,826,987.02 720,020.72
5.22 Self-raised
Building
Total 98.02% 98.02% 15,826,987.02 720,020.72 5.22
(3) Accrual of depreciation reserves of construction in process in the Year
Up to 30 June 2017, the construction in process of the Company has no impairment evidence
15. Intangible assets
(1) Particular about intangible assets
Item Land use right Trademark right Software Total
I. Original book value
1. Balance at year-begin 56,252,774.80 95,800.00 1,070,185.00 57,418,759.80
2. Increase in the current period
(1) Purchase
3. Decrease in the current period
(1) Disposal
4. Period-end balance 56,252,774.80 95,800.00 1,070,185.00 57,418,759.80
II. accumulated amortization
1. Balance at year-begin 3,052,194.81 68,924.87 558,521.40 3,679,641.08
2. Increase in the current period 609,507.42 4,789.98 82,018.50 696,315.90
(1) Accrual 609,507.42 4,789.98 82,018.50 696,315.90
3. Decrease in the current period
(1) Disposal
4. Period-end balance 3,661,702.23 73,714.85 640,539.90 4,375,956.98
III.Depreciation reserves
IV. Book value
1. Ending book value 52,591,072.57 22,085.15 429,645.10 53,042,802.82
2. Book value at year-begin 53,200,579.99 26,875.13 511,663.60 53,739,118.72
Note: The amount amortized in this year accounting as RMB 696,315.90.
(2) Up to 30 June 2017, details of intangible assets restricted in aspect of ownership or use of rights can
83
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
be seen in Note VI-47.
(3)Up to 30 June 2017, the Company has no intangible assets with un-confirmed service life
16. Long-term deferred expense
Balance at Increase in the Amortization
Item Other decrease Closing amount
during this year
year-begin current period
Decoration charge 1,437,761.31 1,534,382.62 381,828.78 744,972.88 1,845,342.27
Total 1,437,761.31 1,534,382.62 381,828.78 744,972.88 1,845,342.27
17. Deferred income tax assets/ deferred income tax liabilities
(1) Details of recognized deferred income tax assets
Period-end balance Balance at year-begin
Deductible Deductible
Item temporary Deferred income temporary Deferred income
difference tax assets difference tax assets
Provision of assets impairment 78,513,371.60 19,628,342.90 78,576,678.60 19,644,169.65
Equity investment difference 14,844,139.32 3,711,034.83 14,844,139.31 3,711,034.83
Un-realized transaction profit with 4,296,489.12 4,374,373.52
1,074,122.28 1,093,593.38
affiliated companies
Total 97,654,000.04 24,413,500.01 97,795,191.43 24,448,797.86
(2) Details of recognized deferred income tax liabilities
Period-end balance Balance at year-begin
Item Taxable temporaryDeferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Depreciation of fixed 440,096.16 110,024.04 930,844.24 232,711.06
assets
Total 440,096.16 110,024.04 930,844.24 232,711.06
(3) Details of unrecognized deferred income tax assets
Item Period-end balance Balance at year-begin
Deductible temporary difference 101,206,474.29 103,706,658.55
Offset-able losses 40,352,154.22 39,164,563.93
Total 141,558,628.51 142,871,222.48
(4) Offset-able losses of the unrecognized deferred income tax assets will expire the
following year
84
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Balance at
Year Period-end balance Note
year-begin
2017 5,875,485.17
2018 15,579,607.94 15,020,960.85
2019 15,973,786.46 14,499,089.58
2020 507,700.61 507,700.61
2021 4,824,496.17 3,261,327.72
2020 3,466,563.04
Total 40,352,154.22 39,164,563.93
18. Other non current assets
Item Period-end balance Balance at year-begin
Other 100,000.00 100,000.00
Total 100,000.00 100,000.00
19. Details of asset impairment provision
Decreased in
Amount at Provision in the the year Closing
Item
year-begin period Written amount
Other
back
189,620 63,307 104,436,90
I. Bad debt reserve
104,689,834.51 .97 .00 6.54
II. Held-to-maturity investment 20,000.00 20,000.00
impairment provision
29,635,652.58
III. Inventory impairment provision 29,635,652
.58
23,300,406.04
IV.Long-term equity investment
23,300,406
impairment provision
.04
5,482,840.91
V. Fixed assets impairment provision 5,482,840.
91
VI. Financial assets depreciation reserves 8,126,240.00
available for sale 8,126,240.
85
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Decreased in
Amount at Provision in the the year Closing
Item
year-begin period Written amount
Other
back
00
189,620 63,307 171,002,04
Total
171,254,974.04 .97 .00 6.07
Other decreased refers to the bad debt reserves have 63,307.00 Yuan deduction for transferring subsidiary Shenzhen SDG
Tellus Property Management Co., Ltd.
20. Short-term loans
(1)category
Item Period-end balance Balance at year-begin
Debt of honor 50,000,000.00 50,000,000.00
Total 50,000,000.00 50,000,000.00
(2) No un-settlement short-term loans due in the period
21. Account payable
(1) Account payable
Item Period-end balance Balance at year-begin
Account payables 22,195,793.29 23,599,227.33
Total 22,195,793.29 23,599,227.33
(2) Major account payable with over one year age
Item Period-end balance Unsettled reasons
Shenzhen SDG Real Estate Co., Ltd. 6,054,855.46 Not paid from related company
Total 6,054,855.46
22. Account received in advance
(1) Account received in advance
Item Period-end balance Balance at year-begin
Within 1 year 10,144,741.49 10,872,120.44
1-2 years 345,811.38
2-3 years 345,811.38
Over 3 years 712,561.20 712,561.20
Total 11,203,114.07 11,930,493.02
86
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Notes: payments in advance over three years mainly represent those by our subsidiary Shenzhen New Yongtong
Automobile Detection equipments Co., Ltd. due to that installment and commissioning of equipments have not been
inspected and accepted by clients, the payments are not carried forward accordingly.
23. Wages payable
(1) Wages payable
Decreased in
Increased in the year
Item Balance at year-begin the year Period-end balance
I. Short-term compensation
25,209,472.43 27,541,228.54 30,810,742.75 21,939,958.22
II. Post-employment
1,935,158.75 3,363,037.53 4,027,780.38 1,270,415.90
welfare- defined contribution
plans
III. Compensation from
labor relationship
dismissed
IV. Other welfare due
within one year
Total 27,144,631.18 30,904,266.07 34,838,523.13 23,210,374.12
(2) Short-term compensation
Decreased in
Increased in the year
Item Balance at year-begin the year Period-end balance
1. Wages , bonuses, allowances
22,876,175.76 23,578,708.90 26,716,100.56 19,738,784.10
and subsidies
2. Welfare for workers and
372,445.00 372,445.00
staff
3. Social insurance
8,030.90 1,206,437.69 1,205,845.47 8,623.12
Including: Medical
7,002.85 1,056,947.68 1,056,429.17 7,521.36
insurance
Work injury
456.99 64,390.42 64,363.96 483.45
insurance
Maternity
571.06 85,099.59 85,052.34 618.31
insurance
4. Housing accumulation
2,094,682.39 1,739,959.05 1,738,404.32 2,096,237.12
fund
5. Labor union
230,583.38 643,677.90 777,947.40 96,313.88
expenditure and personnel
education expense
87
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Decreased in
Increased in the year
Item Balance at year-begin the year Period-end balance
6. Short-term compensated
absences
7. Short-term profit
sharing plan
8. Other
Total 25,209,472.43 27,541,228.54 30,810,742.75 21,939,958.22
(3) Defined contribution plans
Decreased in
Item Balance at year-begin Increased in the year Period-end balance
the year
1. Basic endowment
143,967.68 2,614,335.71 2,631,221.36 127,082.03
insurance
2. Unemployment insurance 1,133.94 59,078.96 59,005.70 1,207.20
3. Enterprise annuity 1,790,057.13 689,622.86 1,337,553.32 1,142,126.67
Total 1,935,158.75 3,363,037.53 4,027,780.38 1,270,415.90
24. Tax payable
Item Period-end balance Balance at year-begin
Value-added tax 581,172.02 979,259.98
Business tax 8,825.60
Enterprise income tax 964,981.43 1,951,517.14
Individual income tax 1,082,028.34 260,584.17
Urban maintenance and construction tax 100,931.76 179,827.99
Property right tax 895,432.45 864,954.73
land VAT 5,362,682.64 5,362,682.64
Land use tax 220,338.33 241,516.81
Educational surtax 114,091.47 168,983.23
Other 10,079.42 72,351.91
Total 9,340,563.46 10,081,678.60
25. Interest payable
Item Period-end balance Balance at year-begin
Interest payable of short-term loans 54,375.00 66,458.33
Interest of long-term loans with interest-installment and principal paid on due 39,972.00 11,368.00
Total 94,347.00 77,826.33
26. Other payable
88
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(1) Classification of other payable according to nature of account
Item Period-end balance Balance at year-begin
Relevance contact, borrowings and interests 56,892,514.68 56,774,469.90
Deposit and margin 13,103,828.65 16,252,470.66
Other 44,782,057.86 53,018,913.98
Total 114,778,401.19 126,045,854.54
(2) Significant other payable with over one year age
Period-end
Item Reasons of un-paid or carry-over
balance
Shenzhen SDG Co., Term of repayment has not been regulated by parent
50,603,246.05
Ltd. company
Total 50,603,246.05
27. Long-term loans
Item Period-end balance Balance at year-begin
Mortgage loan 27,600,000.00 12,000,000.00
Total 27,600,000.00 12,000,000.00
28. Long-term account payable
Item Period-end balance Balance at year-begin
Deposit of staff residence 3,908,848.40 3,908,848.40
Allocation for technology innovation projects 11,311.96 11,311.96
Total 3,920,160.36 3,920,160.36
29. Accrual liability
Period-end
Item Balance at year-begin Reasons
balance
Found more in 2-⑤⑥ in Note X.
Pending litigation 434,487.74 1,192,618.90
Commitment and contingency
Total 434,487.74 1,192,618.90
30. Other non-current liability
Item Closing amount Amount at year-begin
Rental received in advance 14,468,198.45 14,239,537.48
Total 14,468,198.45 14,239,537.48
Notes: other non-current liability refers to the rental received in advance from Shuibei Jewelry Building, the income was
subsequently measured at amortized cost at effective rate.
31. Share capital
89
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Increased/decreased (+,-) in the Period
Shares
Balance at
Item New converted Period-end balance
Bonus
year-begin shares from Other Subtotal
shares
issued public
reserve
I. Restricted shares
1. State-owned
shares
2. State-owned
6,000,000.00 6,000,000.00
legal person’s
shares
3.Other domestic
shares
Including: 71,000,000.00 71,000,000.00
Domestic legal
person’s shares
Domestic natural
person’s shares
4. Foreign shares
Including: Foreign
legal person’s
shares
Foreign natural
person’s shares
Total restricted
77,000,000.00 77,000,000.00
shares
II. Unrestricted
shares
1. RMB Ordinary
193,881,600.00 193,881,600.00
shares
2. Domestically
26,400,000.00 26,400,000.00
listed foreign shares
3. Overseas listed
foreign shares
4. Others
Total unrestricted
220,281,600.00 220,281,600.00
shares
III. Total shares 297,281,600.00 297,281,600.00
32. Capital reserves
Balance at Increased in the Decreased in the Period-end
Item
year-begin year year balance
Capital premium 559,544,773.35 559,544,773.35
Other capital 4,647,832.16 1,033,669.00 5,681,501.16
90
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
reserve
Total 564,192,605.51 1,033,669.00 565,226,274.51
33. Surplus reserves
Item Balance at year-begin Increased in the year Decreased in the year Period-end balance
Statutory surplus
2,952,586.32 2,952,586.32
reserves
Total 2,952,586.32 2,952,586.32
34. Retained profits
Item The period Last year
Undistributed profits at the end of last year before adjustment 30,935,823.12 3,742,260.49
Adjust the total undistributed profits at the beginning of the year (Increase +, Decrease -)
Undistributed profits at the beginning of the year after adjustment 30,935,823.12 3,742,260.49
Add: The net profits belong to shareholders of patent company of this year 24,596,905.09 27,193,562.63
Less: Withdraw statutory surplus reserves
Withdraw free surplus reserves
Withdrawal of general risk provisions
Common stock dividends payable
Common stock dividends transferred to capital stock
Retained profits at end of the period 55,532,728.21 30,935,823.12
35. Operating income and cost
Jan.- Jun.2017 Jan.- Jun.2016
Item
Income Cost Income Cost
Main operating 158,321,271.67 117,170,941.78 153,921,452.19 111,871,099.40
Other operating 2,662,832.89 853,872.18 3,225,714.29 951,281.48
Total 160,984,104.56 118,024,813.96 157,147,166.48 112,822,380.88
36. Tax and surcharges
Item Jan.- Jun.2017 Jan.- Jun.2016
Consumption tax 21,580.86
Business tax 1,724,935.71
City maintenance and construction tax 368,816.45 401,069.68
Education surcharge 254,567.79 277,720.82
Land use right 312,379.03
Property tax 1,792,852.09
Other taxes 60,729.54
91
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Jan.- Jun.2017 Jan.- Jun.2016
Total 2,810,925.76 2,403,726.21
Note: ① See details about the payment standards of business tax and additional on Note V. Taxes.
② According to the relevant provisions of the notification about VAT Accounting Treatment Regulations
(CK No. [2016] 22) issued by the Ministry of Finance, after the comprehensive trial implementation of
business tax to added-value tax, the subject title of “business tax and additional” should be adjusted to be
“tax and additional”, this subject accounts the consumption tax, urban maintenance and construction tax,
resource tax, education surcharge and property tax, land use tax, travel tax, stamp duty and other related
taxes and fees generated from the business operation; “business tax and additional” item in the profit
statement was adjusted to be “tax and additional” item. The property tax, land use tax, travel tax, stamp
duty and other related taxes and fees of the Company were originally listed in the management fees, and
started to be listed in this subject since May 1, 2016.
37. Sales expenses
Item Jan.- Jun.2017 Jan.- Jun.2016
Employee compensation 4,628,353.86 4,695,023.72
Advertising and exhibition expenses 110,070.26 164,859.10
Depreciation and amortization 451,080.13 398,391.34
Office expenses 411,090.60 422,227.60
Utilities 150,135.43 142,347.99
Transportation and business trip cost 189,297.19 252,965.15
Other 943,577.78 1,323,945.33
Total 6,883,605.25 7,399,760.23
38. Administration expense
Item Jan.- Jun.2017 Jan.- Jun.2016
Employee compensation 14,072,858.71 13,469,076.10
Taxes 1,489,743.87
Office expenses 1,384,396.56 1,276,135.32
Transportation and business trip cost 626,527.69 423,970.13
Business entertainment expenses 376,655.28 363,685.60
Depreciation and amortization 959,488.65 838,535.59
Consulting and service expenses 898,254.97 1,090,214.77
Other 1,033,839.90 1,853,665.74
Total 19,352,021.76 20,805,027.12
39. Financial expenses
92
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Jan.- Jun.2017 Jan.- Jun.2016
Interest expenses 2,069,420.04 2,202,107.56
Less: Interest income 1,396,595.43 1,584,498.59
Less: interest capitalized amount 720,020.72 567,873.61
Exchange gains and losses -81,475.00 44,675.69
Other 155,131.65 194,589.73
Total 26,460.54 289,000.78
40. Assets impairment loss
Item Jan.- Jun.2017 Jan.- Jun.2016
Bad debt loss -189,620.97
Total -189,620.97
41. Investment income
Item Jan.- Jun.2017 Jan.- Jun.2016
Income of long-term equity 2,929,608.85 2,808,781.91
investment calculated based on equity
Income of disposal of long-term 4,916,001.05
equity investment
Investment income of financial 1,790,968.34 2,291,789.05
products during the holding period
Total 9,636,578.24 5,100,570.96
42. Non-operating income
Amount reckoned into current
Item Jan.- Jun.2017 Jan.- Jun.2016
non-recurring gains/losses
Non-current assets disposal gains 58,186.00 28,104.37 58,186.00
Including: fixed assets disposal gains 58,186.00 28,104.37 58,186.00
Other 261,331.17 17,176.53 261,331.17
Total 319,517.17 45,280.90 319,517.17
43. Non-operating expenditure
Amount reckoned into current
Item Jan.- Jun.2017 Jan.- Jun.2016
non-recurring gains/losses
Non-current assets disposal losses 6,919.80 1,237.84 6,919.80
Including: fixed assets disposal losses 6,919.80 1,237.84 6,919.80
Other 4,527.00
93
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Amount reckoned into current
Item Jan.- Jun.2017 Jan.- Jun.2016
non-recurring gains/losses
Total 6,919.80 5,764.84 6,919.80
44. Income tax expense
(1) Statement of income tax expense
Item Jan.- Jun.2017 Jan.- Jun.2016
Current income tax expense 1,077,177.35 701,085.04
Deferred income tax expense -103,215.92 -103,215.92
Adjustment for precious period -350,274.34
Total 623,687.09 597,869.12
(2) Adjustment on accounting profit and income tax expenses
Item Jan.- Jun.2017
Total profit
24,025,073.87
Income tax measured by statutory/applicable tax rate
6,006,268.47
Impact by different tax rate applied by subsidies
Adjusted the previous income tax
-350,274.34
Impact by non-taxable revenue
Impact on cost, expenses and losses that unable to deducted
-808,604.16
Impact by the deductible losses of the un-recognized previous deferred
-5,090,343.66
income tax
The deductible temporary differences or deductible losses of the
866,640.77
un-recognized deferred income tax assets in the Period
Change of the balance of deferred income tax assets/liabilities at
period-begin resulted by tax rate adjustment
Income tax expense 623,687.09
45. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
Item Jan.- Jun.2017 Jan.- Jun.2016
Intercourse funds and others 16,403,125.71 20,785,593.31
Interest income 1,278,595.43 1,584,498.59
Total 17,681,721.14 22,370,091.90
(2) Other cash paid in relation to operation activities
Item Jan.- Jun.2017 Jan.- Jun.2016
94
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Jan.- Jun.2017 Jan.- Jun.2016
Expenses of operation management cash paid 6,123,845.66 7,268,703.14
Intercourse funds and other 32,907,632.73 18,233,788.32
Total 39,031,478.39 25,502,491.46
46. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Supplementary information Jan.- Jun.2017 Jan.- Jun.2016
1. Net profit adjusted to cash flow of operation activities:
Net profit
23,401,386.78 17,969,489.16
Add: Provision of assets impairment
-189,620.97
Depreciation of fixed assets, consumption of oil assets and
depreciation of productive biology assets 6,493,475.89 6,600,980.21
Amortization of intangible assets
696,315.90 99,401.25
Amortization of long-term deferred expenses
381,828.78 279,461.61
Loss from disposal of fixed assets, intangible assets and
-57,116.20 -23,466.53
other long-term assets(gain is listed with “-”)
Loss of disposing fixed assets(gain is listed with “-”)
5,850.00
Loss from change of fair value(gain is listed with “-”)
Financial expenses (gain is listed with “-”)
1,267,924.32 1,678,909.64
Investment loss (gain is listed with “-”)
-9,636,578.24 -5,100,570.96
Decrease of deferred income tax asset( (increase is listed with
35,297.85 19,471.10
“-”)
Increase of deferred income tax liability (decrease is listed
-122,687.02 -122,687.02
with “-”)
Decrease of inventory (increase is listed with “-”)
3,049,116.56 6,971,918.06
Decrease of operating receivable accounts (increase is listed
-3,111,248.97 -2,280,192.36
with “-”)
Increase of operating payable accounts (decrease is listed with
-14,833,383.28 -2,121,207.80
“-”)
Other
Net cash flow arising from operating activities
7,380,561.40 23,971,506.36
2. Material investment and financing not involved in cash
flow
Debt transfer to capital
Convertible bonds due within one year
95
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Supplementary information Jan.- Jun.2017 Jan.- Jun.2016
Fixed assets financing lease-in
3. Net change of cash and cash equivalents:
Balance of cash at period end
123,232,791.88 190,981,593.06
Less: Balance of cash equivalent at year-begin
178,497,640.10 159,184,710.93
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increasing of cash and cash equivalents
-55,264,848.22 31,796,882.13
(2) Constitution of cash and cash equivalent
Period-end Balance at
Item
balance year-begin
I. Cash 123,232,79 178,497,64
1.88 0.10
Including: stock cash
67,334.26 96,167.91
Bank deposit available for payment at any time 123,165,45 178,401,47
7.62 2.19
Other monetary fund available for payment at any time
II. Cash equivalent
Including: bond investment matured within 3 months
II. Balance of cash and cash equivalent at year-end 123,232,79 178,497,64
1.88 0.10
Including: Cash and cash equivalent with restriction used by parent company
or subsidiary in the Group
Note: cash and cash equivalent excluding the cash and cash equivalent with use-restricted concerned of
the parent company or subsidiaries in the Group
47. Assets with ownership or use right restricted
Item Book value at Period-end Reason
Monetary fund 30,000,000.00 Found in Note VI-1
Investment real estate 45,656,477.74
Fixed assets 1,580,835.53
Intangible assets 50,752,685.52
Long-term equity investment 75,219,913.29 见附注九、5、(2)
Total 203,209,912.08
(1) In order to meet needs in operation and construction, the Company signed the comprehensive credit
96
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
contract (2014 SYJTZZ No.007) with credit amount of 211,000,000.00 Yuan with China Citic Bank
Jingtian Branch on August 28, 2014, and signed the highest mortgage contract (2014 SYJTZDZ No.008)
by taking the book assets with the amount of 50,293,453.68 Yuan of Shenzhen SDG Testrite Real Estate
Co. Ltd. as the mortgage, and also signed the highest mortgage contract (2014 SYJTZDZ No.007) by
taking the book assets with the amount of 117,706,546.32 Yuan of the Company as the mortgage, and
hereby signed the loan contract (2014 SYJTDZ No.0012) with the amount of 157,500,000.00 Yuan and
the length of maturity from August 28, 2014 to August 28, 2017 on August 28, 2014, the mode of
repayment is to pay interest monthly and return 8% of principal semiannually after the loan origination
and pay the balance at one time once due, up to June 30, 2017, this loan has been returned, but the assets
are still in the state of mortgage because the credit ceiling still in period of validity.
(2)The land of this project (SFDZ No. 2000609764) needs to be mortgaged in order to satisfy the
requirements for the implementation of Testrite Shuibei Jewelry Building project, the Company’s
subsidiary Shenzhen Zhongtian Industry Co., Ltd. signed the loan contract (Mortgage & Loan 2014 Gu
250 Tianbei) with borrowing amount of 0.3 billion Yuan and loan term from June 24, 2014 to June 23,
2024 with China Construction Bank Shuibei Branch on June 24, 2014, and the Company providing the
joint liability guaranty (Guarantee and loan 2014 Gu 250 Tianbei). Up to June 30, 2017, loans of
27,600,000.00 Yuan from the bank under the name of Shenzhen Zhongtian Industrial Co., Ltd.
48. Item of foreign currency
(1) Item of foreign currency
Closing balance of Ending RMB balance
Item Rate of conversion
foreign currency converted
Monetary fund
Including: USD 856.00 6.7744 5,798.89
HKD
VII. Changes of consolidation range
1.Enterprise merger under the different control
The Company had no enterprise merger under the different control in Period.
2.Enterprise merger under the same control
The Company had no enterprise merger under the same control in Period.
3.Reverse purchase
The Company had no reverse purchase in Period.
4.Disposal of subsidiaries
The Company has one subsidiary (Shenzhen Tellus SDG Property Management Co., Ltd. ) disposed by
negotiating transfer in the period, after equity transfer, Tellus Property is excluding in consolidation
statement of the Company.
97
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
5. Change of consolidation range from other reasons
Nil
VIII. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Share-holding
Registered Business Acquired
Subsidiary operation ratio (%)
place nature
place way
Directly Indirectly
Obtained by
Shenzhen Tellus New Yongtong Service
Shenzhen Shenzhen 100.00 establishment
Automobile Development Co. Ltd*1 industry
or investment
Obtained by
Shenzhen Dongchang Yongtong Service
Shenzhen Shenzhen 95.00 establishment
Motor Vehicle Detection Co., Ltd. industry
or investment
Obtained by
Shenzhen New Yongtong Dongxiao Service
Shenzhen Shenzhen 95.00 establishment
Vehicle Inspection Co., Ltd. industry
or investment
Obtained by
Shenzhen Bao’an Shiquan Industrial
Shenzhen Shenzhen Commerce 100.00 establishment
Co., Ltd
or investment
Obtained by
Shenzhen SDG Tellus Real Estate
Shenzhen Shenzhen Manufacture 100.00 establishment
Co., Ltd
or investment
Obtained by
Shenzhen Tellus Real Estate Service
Shenzhen Shenzhen 100.00 establishment
Exchange Co. Ltd industry
or investment
Shenzhen New Yongtong Obtained by
Service
Automobile Inspection Equipment Shenzhen Shenzhen 51.00 establishment
industry
Co. Ltd or investment
Obtained by
Shenzhen Automobile Industry
Shenzhen Shenzhen Commerce 100.00 establishment
Trading General Company*1
or investment
Shenzhen Automotive Industry Shenzhen Shenzhen Service 100.00 Obtained by
98
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Main Share-holding
Registered Business Acquired
Subsidiary operation ratio (%)
place nature
place way
Directly Indirectly
Supply Corporation industry establishment
or investment
Obtained by
Shenzhen SDG Huari Automobile Service
Shenzhen Shenzhen 60.00 establishment
Enterprise Co.Limited industry
or investment
Obtained by
Shenzhen Huari Anxin Automobile Service
Shenzhen Shenzhen 100.00 establishment
Inspection Ltd industry
or investment
Obtained by
Shenzhen Zhongtian Industrial Co., Service
Shenzhen Shenzhen 100.00 establishment
Ltd. industry
or investment
Obtained by
Shenzhen Huari TOYOTA
Shenzhen Shenzhen Commerce 60.00 establishment
Automobile Sales Service Co., Ltd.
or investment
Obtained by
Shenzhen Hanli Hi-Tech Ceramics Ceramic
Shenzhen Shenzhen 80.00 establishment
Co., Ltd.*2 technology
or investment
Obtained by
Shenzhen South Auto Maintenance Vehicle
Shenzhen Shenzhen 100.00 establishment
Center*2 maintenance
or investment
Obtained by
Anhui Tellus Starlight Jewelry
Hefei Hefei Commerce 51.00 establishment
Investment Co., Ltd.
or investment
Obtained by
Anhui Tellus Starlight Junzun
Hefei Hefei Commerce 60.00 establishment
Jewelry Co., Ltd.
or investment
Note: * 1 Due to the execution case of dedicated funds for housing public facilities of Fu Yi Ya Ju, the
court froze the business registration information or equity of the companies, and the freezing time limit
was until August 12, 2017. See details about the execution case on Note X. 2.
* 2 The operating period of Shenzhen Hanli Hi-Tech Ceramics Co., Ltd. was from September 21, 1993 to
September 21, 1998, and the operating period of Shenzhen South Auto Maintenance Center was from
July 12, 1994 to July 2002 11, these companies have ceased to operate for many years and have been
99
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
revoked the industrial and commercial registration because they did not participate in the annual
inspection of industry and commerce. The Company has not been able to exercise effective control over
such companies which should not be included in the consolidated scope of the consolidated financial
statements of the Company, and the book value of the Company's investment in such companies and the
net value of the net investment in these companies was zero.
(2) Important non-wholly-owned subsidiary
Dividend
Gains/losses
Share-holding announced to
attributable to Ending equity
ratio of minority distribute for
Subsidiary minority in the of minority
(%) minority in the
Period
Period
Shenzhen Huari Toyota Automobile
40% 81,785.04 -1,652,313.72
Co. Ltd
Shenzhen SDG Huari Automobile
40% 58,554.46 11,557,064.14
Enterprise Co.Limited
(3) Main finance of the important non-wholly-owned subsidiary
Period-end balance
Subsidiary Non-current Current Non-current
Current assets Total assets Total liability
assets liability liability
Shenzhen Huari
Toyota
43,666,739.87 1,418,432.49 45,085,172.36 49,215,956.65 49,215,956.65
Automobile Co.
Ltd
Shenzhen SDG
Huari
Automobile 45,009,780.56 30,733,410.12 75,743,190.68 46,306,018.54 544,511.78 46,850,530.32
Enterprise
Co.Limited
(Cont.)
Balance at year-begin
Subsidiary Non-current Current Non-current
Current assets Total assets Total liability
assets liability liability
Shenzhen Huari
40,898,136.14 1,571,594.67 42,469,730.81 46,804,977.69 46,804,977.69
Toyota
100
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Balance at year-begin
Subsidiary Non-current Current Non-current
Current assets Total assets Total liability
assets liability liability
Automobile Co.
Ltd
Shenzhen SDG
Huari
Automobile 42,822,752.85 31,691,585.09 74,514,337.94 45,100,864.92 667,198.80 45,768,063.72
Enterprise
Co.Limited
Jan.- Jun.2017 Jan.- Jun.2016
Total Cash flow Total Cash flow
Subsidi
Business comprehe from Business comprehen from
ary Net profit Net profit
income nsive operating income sive operating
income activities income activities
Shenzh
en
Huari
204,462.5
Toyota 97,707,246.23 204,462.59 967,416.9194,044,194.14 -19,548.04 -19,548.04 211,114.88
9
Autom
obile
Co. Ltd
Shenzh
en SDG
Huari
Autom
146,386.1
obile 17,870,512.30 146,386.14-2,957,442.1819,299,222.50 101,794.49 101,794.49 2,163,653.64
4
Enterpr
ise
Co.Lim
ited
101
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
(4) Material limits on using group assets or discharging group debts
There is no material limit on using group assets or discharging group debts by our
subsidiaries.
2. Transactions leading to change of owner’s equity while not resulting in loss of
control in subsidiary
There is no transaction by the Company leading to change of owner’s equity while not
resulting in loss of control in subsidiary.
3. Equity in joint venture and cooperative enterprise
(1) Important cooperative enterprise
Share-holding Accounting
ratio (%) treatment on
Main
Registered investment for
Name operation Business nature
place
place Directly Indirectly joint venture
and cooperative
enterprise
Affiliation:
Shenzhen Zung Fu Tellus Sales and
Shenzhen Shenzhen
maintain of Benz 35.00 Equity method
Auto Service Co., Ltd.
Shenzhen Dongfeng Auto Auto manufacture
Shenzhen Shenzhen
and maintain 25.00 Equity method
Co., Ltd.
Joint venture:
Investment in
industry and
Shenzhen Tellus Gman Shenzhen Shenzhen property
50.00 Equity method
Investment Co., Ltd management and
leasing
(2) Main financial information of the important joint venture
2017-6-30 / Jan.- Jun.2017 2016-12-31/ Jan.- Jun.2016
Shenzhen Zung Fu Shenzhen Shenzhen Zung Fu Shenzhen
Item
Tellus Auto Service Dongfeng Auto Tellus Auto Service Dongfeng Auto
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Current assets
351,648,271.11 385,507,565.21 380,939,942.00 433,147,120.64
Non -current assets
21,219,192.36 151,615,978.96 22,120,081.00 154,874,554.92
Total assets 372,867,463.47 537,123,544.17 403,060,023.00 588,021,675.56
102
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
2017-6-30 / Jan.- Jun.2017 2016-12-31/ Jan.- Jun.2016
Shenzhen Zung Fu Shenzhen Shenzhen Zung Fu Shenzhen
Item
Tellus Auto Service Dongfeng Auto Tellus Auto Service Dongfeng Auto
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Current liabilities 156,582,160.26 337,636,227.33 186,730,078.00 376,098,044.69
Non –current liabilities
67,192,979.15 68,990,352.65
Total liabilities
156,582,160.26 404,829,206.48 186,730,078.00 445,088,397.34
Minority shareholders’
equity 329,057.95 1,027,646.31
Attributable to parent
company shareholders’ 216,285,303.21 131,965,279.74 216,329,945.00 141,905,631.91
equity
Share of net assets
calculated by 75,699,856.12 32,991,319.93 75,715,480.75 35,476,407.97
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of
internal trading
—Other -479,942.83
Book value of equity
investment in joint 75,219,913.29 32,991,319.93 75,715,480.75 35,476,407.97
ventures
Fair value of the equity
investment of affiliation
with public offers
concerned
Operation income
602,080,907.00 249,209,515.73 509,511,244.05 254,428,669.06
Net profit
24,584,092.96 -9,138,940.53 6,120,624.89 2,210,135.53
Net profit of the
termination of operation
103
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
2017-6-30 / Jan.- Jun.2017 2016-12-31/ Jan.- Jun.2016
Shenzhen Zung Fu Shenzhen Shenzhen Zung Fu Shenzhen
Item
Tellus Auto Service Dongfeng Auto Tellus Auto Service Dongfeng Auto
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Other comprehensive
income
Total comprehensive
income 24,584,092.96 -9,138,940.53 6,120,624.89 2,210,135.53
Dividends received from
9,100,000.00 6,300,000.00
affiliation in the year
(3) Main financial information of the important cooperative enterprise
Shenzhen Tellus Gman Investment Co., Ltd
Item 2016-12-31/ Jan.-
2017-6-30 / Jan.- Jun.2017
Jun.2016
Current assets
24,183,364.59 28,920,938.79
Including: cash and cash equivalents
14,238,992.04 18,429,108.04
Non -current assets
422,002,467.62 422,125,153.92
Total assets
446,185,832.21 451,046,092.71
Current liabilities
46,433,395.95 55,664,266.08
Non –current liabilities
292,000,000.00 281,020,000.00
Total liabilities
338,433,395.95 336,684,266.08
Minority shareholders’ equity
Attributable to parent company shareholders’
107,752,436.26 114,361,826.63
equity
Share of net assets calculated by shareholding
53,876,218.14 57,180,913.32
ratio
Adjustment items
--Goodwill
--Unrealized profit of internal trading
—Other
Book value of equity investment in joint ventures
53,876,218.14 57,180,913.32
104
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Shenzhen Tellus Gman Investment Co., Ltd
Item 2016-12-31/ Jan.-
2017-6-30 / Jan.- Jun.2017
Jun.2016
Fair value of the equity investment of joint
ventures with public offers concerned
Operation income 19,777,905.85
Financial expense
10,275,774.46 -27,701.41
Income tax expense
Net profit
-6,609,390.37 27,701.41
Net profit of the termination of operation
Other comprehensive income
Total comprehensive income
-6,609,390.37 27,701.41
Dividends received from joint venture in the year
(4) Summary financial information of not important joint venture and cooperative
enterprise
2016-12-31/ Jan.-
Item 2017-6-30 / Jan.- Jun.2017
Jun.2016
Joint ventures:
Total investment of book value 10,724,435.93 10,583,444.89
Total amount of the follow items calculated by
share-holding ratio
—net profit 140,991.04 345,955.27
—Other comprehensive income
—Total comprehensive income 140,991.04 345,955.27
affiliation:
Total investment of book value 25,684,698.62 24,677,061.13
Total amount of the follow items calculated by
share-holding ratio
—net profit 1,007,637.49 -360,487.61
—Other comprehensive income
—Total comprehensive income 1,007,637.49 -360,487.61
(5) Excess deficit from joint venture or affiliated business
105
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Cumulative Losses of last year
Cumulative losses
losses un-recognized (or net
Name un-recognized at
un-recognized profit shares in the
current period-end
in last year Year )
Shenzhen Tellus Auto Service Chain Co.,
97,868.99 136.42 98,005.41
Ltd.
Shenzhen Xinyongtong Dongxiao Auto
758,585.00 179,199.78 937,784.78
Parts Sales Co., LTd.
Shenzhen Yongtong Xinda Inspection
381,557.52 -62,529.86 319,027.66
Equipment Co., Ltd.
Shenzhen New Yongtong Auto Service
55,106.12 55,106.12
Co., Ltd.
4. Important co-management
No co-management in the Period.
IX. Related party and related transactions
1. Parent company of the enterprise
Share-holding
ratio on the Voting right ratio
Registration Business Registered
Parent company enterprise for on the enterprise
place nature capital
parent company (%)
(%)
Development
and operation
2,582,820,0
Shenzhen SDG Co., Ltd. Shenzhen of real estate 49.09 49.09
00 Yuan
and domestic
commerce
Note: Ultimate controller of the Company is SASAC of Shenzhen.
2. Subsidiary of the Company
Found more in Note VIII-1.
3. Details of joint-venture and affiliated enterprise of the Company
Found more in Note VIII-3.
4. Particulars about other related parties
Other related parties Relationship with the Company
Shenzhen SDG Swan Industrial Company Ltd. Subsidiary of parent company
Shenzhen Machinery Equipment Imp & Exp. Subsidiary of parent company
Company
106
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Shenzhen SDG Real Estate Co., Ltd. Subsidiary of parent company
Hong Kong Yujia Investment Co, Ltd. Subsidiary of parent company
Shenzhen Tellus Real Estate Yueyang Co., Subsidiary of parent company
Shenzhen SDG Development Center Construction Subsidiary of parent company
Supervision Co., Ltd.
Shenzhen Tellus Yangchun Real Estate Co., Ltd. Subsidiary of parent company
Shenzhen Longgang Tellus Real Estate Co., Ltd. Subsidiary of parent company
Shenzhen SDG Property Management Co., Ltd. Subsidiary of parent company
5. Related transaction
(1) Related lease
①As a lessor for the Company
Lease
Lease income
income in
in recognized
Lessee Assets type recognized
in Jan.- Jun.
in Jan.- Jun.
2016
2017
Shenzhen Zung Fu Tellus Auto Service Co., Ltd. House leasing 2,523,809.60 2,523,809.42
Shenzhen New Yongtong Auto Service Co., Ltd. House leasing 134,586.67 203,557.22
Shenzhen Xinyongtong Dongxiao Auto Parts Sales Co., LTd. House leasing 95,190.49 144,933.34
(2) Related guarantee
①The Company serves as guarantor
The Company entered into pledge contract with Zung Fu Auto Management (Shenzhen) Co., Ltd.
(hereinafter referred to as Zung Fu Shenzhen), pursuant to which, during the period from establishment
of our associate company Shenzhen Renhu Tellus Auto Service Co., Ltd. (hereinafter referred to as
Renhu Tellus) to the expiration date of the joint venture contract between the Company and Renhe
Shenzhen, provided that Zung Fu Shenzhen provides borrowings to Zung Fu Tellus under entrusted loan,
Zung Fu Tellus makes borrows from bank or other financial institutions and guaranteed by Zung Fu
Shenzhen, and the total borrowings shall not exceed RMB100 million, the Company bears 35% of the
obligations arising from above borrowings according to its shareholding proportion. It was agreed for the
Company to pledge 35% equity interests held in Zung Fu Tellus to Zung Fu Shenzhen as counter
guarantee for the above borrowings.
Other than the above guarantee, the Company’s provision of guarantees as guarantor all relates to such
guarantees provided to subsidiaries.
(3) Engagement of related parties to provide labor services
Zhongtian Industrial selected construction supervision institution for Tellus Shuibei Project through
107
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
public bidding. On 14 May 2013, SDG Supervision obtained letter of acceptance (No. 20130514002C)
issued by Shenzhen Construction Project Trading Service Center, and became the construction
supervision institution for Tellus Shuibei Project through public bidding.
In May 2013, Zhongtian Industrial signed Supervision Contract in respect of Tellus Shuibei Jewelry
Building Project with SDG Supervision, pursuant to which, Zhongtian Industrial engaged SDG
Supervision to exercise supervision in respect of Tellus Shuibei Jewelry Building Project. The
supervision fee was RMB 5,041,900. As at 30 June 2017, an aggregate of RMB 4,637,200 has been paid.
(4) Related fund occupation expenses
Jan.-
Related party Content Jan.- Jun.2016
Jun.2017
Borrow-in:
Shenzhen SDG Co., Ltd. Fund occupation expenses 1,634,233.95
Borrow-out:
Shenzhen Xinglong Machinery Mould Co., Ltd. Fund occupation expenses 37,708.32 38,013.32
(5) Remuneration of key manager
Item Jan.- Jun.2017 Jan.- Jun.2016
Remuneration of key manager 4.19 million Yuan 2.81 million Yuan
Note: The year-end bonus for year of 2016 are paid in the Year, part of the bonus are paid last year, rests of the bonus will
pay in second half of 2017
(6) Related transaction from equity transfer
The Company signed a Property Rights Transfer Contract with Shenzhen SDG Property Management Co.,
Ltd. (hereinafter referred to as SDG Property Company) on May 31, 2017, which transferred 100% equity
stake of Shenzhen SDG Tellus Property Management Co., Ltd. held by the Company to SDG Property
Company by agreement transfer, and the transfer price was RMB 14.15 million. Up to June 30, 2017,
SDG Property Company has received all transferred money, and the transfer was completed.
6. Receivable/payable items of related parties
(1) Receivable item
Period-end balance Balance at year-begin
Item Book Bad debt Book Bad debt
balance reserve balance reserve
Account receivable:
Shenzhen New Yongtong Auto Service Co., Ltd. 927,602.00 927,602.00 960,731.00 927,602.00
Shenzhen Xinyongtong Dongxiao Auto Parts Sales Co., LTd. 680,400.00 680,400.00 704,700.00 680,400.00
Total 1,608,002.00 1,608,002.00 1,665,431.00 1,608,002.00
108
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Period-end balance Balance at year-begin
Item Book Bad debt Book Bad debt
balance reserve balance reserve
Other account receivable:
Shenzhen Tellus Auto Service Chain Co., Ltd. 1,359,297.00 1,359,297.00
1,359,297.00 1,359,297.00
Shenzhen New Yongtong Technology Co., Ltd. 116,480.22 58,240.11 116,480.22 58,240.11
Shenzhen Yongtong Xinda Inspection Equipment Co., Ltd. 527,361.24 522,398.47 522,398.47 522,398.47
Shenzhen Xiandao New Material Co., Ltd. 660,790.09 660,790.09 660,790.09 660,790.09
Shenzhen Xinglong Machinery Mould Co., Ltd. 2,224,391.26 1,016,991.08 998,136.92
2,186,682.94
Shenzhen Tellus New Yongtong Auto Service Co., ltd. 114,776.33 114,776.33 114,776.33 114,776.33
Total 5,003,096.14 3,732,493.08 4,960,425.05 3,713,638.92
Long-term account receivables
Shenzhen Tellus Auto Service Chain Co., Ltd. 2,179,203.68 2,179,203.68 2,179,203.68 2,179,203.68
Total 2,179,203.68 2,179,203.68 2,179,203.68 2,179,203.68
(2) Payable item
Balance at
Item Period-end balance
year-begin
Account received in advance:
Shenzhen Zung Fu Tellus Auto Service Co., Ltd. 2,523,809.60
Total 2,523,809.60
Account payable:
Shenzhen SDG Real Estate Co., Ltd. 6,054,855.46 6,054,855.46
Shenzhen Machinery Equipment Imp & Exp. Company 45,300.00 45,300.00
Total 6,100,155.46 6,100,155.46
Other account payable:
Shenzhen SDG Real Estate Co., Ltd. 335,701.34 335,701.34
Hong Kong Yujia Investment Co, Ltd. 2,031,576.35 2,171,300.16
Shenzhen SDG Swan Industrial Company Ltd. 20,703.25 20,703.25
Shenzhen Machinery Equipment Imp & Exp. Company 1,554,196.80 1,576,424.94
Shenzhen SDG Co., Ltd. 50,925,608.78 50,645,612.05
Shenzhen Longgang Tellus Real Estate Co., Ltd. 1,095,742.50 1,095,742.50
Shenzhen Tellus Yangchun Real Estate Co., Ltd. 476,217.49 476,217.49
109
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Balance at
Item Period-end balance
year-begin
Shenzhen Xinglong Machinery Mould Co., Ltd. 78,515.56 78,515.56
Shenzhen New Yongtong Technology Co., Ltd. 320,000.00 320,000.00
Shenzhen Tellus Hang Investment Co., Ltd. 29,912.61 29,912.61
Shenzhen Yongtong Xinda Inspection Equipment Co., Ltd. 24,340.00 24,340.00
Total 56,892,514.68 56,774,469.90
X. Commitment or contingency
1. Important commitments
(1) Capital commitments
Item Period-end balance Balance at year-begin
Signed without recognized in financial
statement
—Purchase and construction of long-term 77,873,064.21 126,313,353.45
assets commitment
Total 77,873,064.21 126,313,353.45
2. Contingency
(1) Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
①In October 2005, a lawsuit was brought before Shenzhen Luo Hu District People’s Court by the
Company, which was the recognizer of Jintian Industrial (Group) Co., Ltd. (“Jintian”) to require Jintian
to redress RMB 4,081,830 (principal: RMB 3,000,000, interest: RMB 1,051,380, legal fare: RMB 25,160
and executive fare: RMB 5,290). Shenzhen Intermediate People’s Court had adjudged that the Company
won the lawsuit and the forcible execution had been applied by the Company. As for the deducted amount
in previous years, the Company has counted as debt losses. The lawsuit has not executed yet till the date
when the Report approved.
In April 2006, Shenzhen Development Bank brought an accusation against Jintian’s overdue loan two
million U.S. dollars and the Company who guaranteed for this loan. The company took on the principal
and all interest. After that, the Company appealed to Shenzhen Luohu District People's Court, asking
Jintian to repay 2,960,490 U.S. dollars and interest. In 2008, it reached Shen Luo No.937 Civil
Reconciliation Agreement (2008) after the mediating action taken by Shenzhen Luohu District People's
Court. The agreement is as follows: If Jintian repay 2,960,490 U.S. dollars before October 31, 2008, the
company will exempt all the interest. If Jintian can not settle the amount on time, it will pay the penalty
in accordance with the People's Bank of China RMB benchmark lending rate over the same period. At
present, the implementation of property has new progress, and our attorney agent is negotiating and
drafting the pay-off plan with Jintian Company. Jintian Company is handling the bankruptcy
reorganization and pay-off procedures.
110
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
On January 29, 2016, Shenzhen Intermediate People's Court ruled that the reorganization plan of Jintian
Company was completed and the bankruptcy proceedings were terminated, Jintian Company was
re-allocating to the creditors, including the Company, according to the reorganization plan. Up to the
approval date of this financial report, the Company has not yet received the allocated property.
②Subsidiary of the Company Shenzhen SD Tellus Real Estate Company (“Tellus Real Estate Company”)
entered into the “Contract of Liyehui Food Street Co-operation in Buji Town” with Shenzhen Jinlu
Industrial & Trading Company (“Jinlu Company”) on 29 November 1994. In accordance with the
Contract, on the foundation of “Cooperative Development Contract of Liyehui Food Street in Buji Town”
signed between the Jinlu Company and land providers -- Shenzhen Real Estate Management Branch
Bureau of Guangzhou Military Region (“Real Estate Management Branch Bureau”) and People’s
Liberation Army Unit 75731 (“ Unit 75731”), construction funds 10 million Yuan invested by Tellus Real
Estate, received fixed floor area of 6,000 M2 property, and Jinlu Company promise to delivered the
completed building and ancillary facility at the end of November 1995. Tellus Real Estate Company have
invested a total of 9,822,500.00 Yuan in cooperative development up to 31 December 1996, however,
Tellus Real Estate Company failed to get the property should enjoy on the agreed date for property hand
over. Tellus Real Estate Company institute an action at law to the Court, requesting Jinlu Company pay
back the 9.8 million Yuan investment and interests immediately and shoulder all the Court Costs, Real
Estate Management Branch Bureau and Unit 75731 were sentence to be the defendant pursuant to the law
in trial. On 18 March 2003, in line with the Written Judgment (2000) Shen Zhong Fa Fang Chu Zi No.
101 by Shenzhen Intermediate People’s Court, the above mentioned “Cooperative Contract” is valid,
identified as nature of cooperative housing, the two parties continue to perform the contract and
legitimate mechanism should be follow if any disputes arising from executing the Contract by parties in
the Contract.
In March 2005, as a joint plaintiff, Tellus Real Estate Company and Jinlu Company start a suit to Real
Estate Management Branch Bureau and Unit 75731(Communication Equipment Repair Institute of
Guangzhou Military Region), requesting two defendants performing cooperative contract, and delivered
11,845 M2(approximately 11,851,357 Yuan in value) property of Liyehui Food Street to two plaintiff,
moreover, pay for the rental income 5,034,664.94 Yuan in total due to two plaintiff since 1998.
Meanwhile, Tellus Real Estate Company and Jinlu Company entered into an agreement, that is, due to the
self-executing or mandatory enforcement by the Court, concerning the Liyehui Food Street property
taken back in lawsuit, Tellus Real Estate Company received a fixed property of 6,000 M2, rests of the
property belongs to Jinlu Company and Tellus Real Estate Company owns all property while less than
6,000 M2; the income deserved in the lawsuit should be allocated according to 5:5 ratio by two
parties, and as for this lawsuit, which have its first trial in Shenzhen Intermediate People’s Court in
August 2010, because details of a case is complex, the case did not judge in court.
In 2011, Tellus Real Estate Company received a civil ruling paper (2005) Shen Zhong Fa Min Chu Zi No.
111
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
82 from Shenzhen Intermediate People’s Court, that is, “People’s Court has no right to judged how to
allocate the building and its working interest”, because Liyehui Food Street property “is part of the illegal
building”, reject the Tellus Real Estate Company and Jinlu Company’s claim in aspect of the property
delivery and rental allocation of Liyehui Food Street. The cooperative development fund invested for
Tellus Real Estate Company has been provision for bad debts in total in previous year by the Company.
③In 2014, our subsidiary Shenzhen Auto Industrial Trading General Company (hereinafter referred to as
Auto Industrial Trading Company) was served with a summon from people’s court in Futian district,
Shenzhen, pursuant to which, Shenzhen branch of China Huarong Asset Management Co., Ltd.
(“Huarong Shenzhen”) sued Auto Industrial Trading Company for joint settlement responsibility in
respect of the debt disputes between Shenzhen Guangming Watch Co., Ltd. (“Guangming Watch”) and its
creditors.
Pursuant to the civil verdict (SFFJCZD No.801(1997)) issued by people’s court in Futian district,
Shenzhen on 24 November 1997, Guangming Watch shall repay RMB700,000 and interests thereof to
Shenzhen Futian branch of China CITIC Bank. Guangming Watch failed to discharge debts after such
verdict, and Shenzhen Futian branch of China CITIC Bank applied for compulsive execution and
recovered an amount of RMB561,398.30. later, due to that there was no property available for execution,
people’s court in Futian district of Shenzhen issued civil verdict (SFFZZD No.102(1998)) to suspend
execution on 10 December 1998. In July, the original creditor Shenzhen Futian branch of China CITIC
Bank transferred the above creditor’s right (namely outstanding principal of RMB350,000 million and
relevant interests) to Huarong Shenzhen.
Guangming Watch was an associate company of Auto Industrial Trading Company with a shareholding of
10% in 1990. Guangming Watch has been deregistered with Shenzhen Business and Commerce Bureau
on 28 February 2002. Huarong Shenzhen sued Guangming Watch and Auto Industrial Trading Company
at people’s court in Futian district of Shenzhen in May 2014, requesting to obtain all the interests of
Guangming Watch under the civil verdict (SFFJCZD No.801(1997)), and request an order for Auto
Industrial Trading Company to take joint settlement responsibility for the above debts on the grounds that
failure of Guangming Watch to settle debts resulted in prejudice in creditors’ right by shareholders. Up to
the approval date of the financial report, the case has not been ruled yet.
④ The Company’s subsidiary, Shenzhen Automobile Industry and Trade Co., Ltd (hereinafter referred to
as "Automobile Industry and Trade Company") got shares in Shenzhen Guangming Watch Co., Ltd.
(hereinafter referred to as "Guangming Watch Company", Automobile Industry and Trade Company
holds 10% of shares) in 1990, this company loaned RMB 2 million from China Construction Bank on
December 12, 1990 with time limit of nine months, Guangming Watch Company repaid RMB 100,000
in October 1992, but the balance was still in arrears. Shenzhen Bao'an District People's Court (1996)
BFJZ No. 183 paper of civil judgment determined Guangming Watch Company to repay the loan of
RMB 1.9 million and the interests to China Construction Bank, Shenzhen Intermediate People's Court
(1996) SZFJYZZ No. 563 paper of civil judgment’ final judgment affirmed the original judgment. After
the judgment, Guangming Watch Company didn’t perform the obligations, so China Construction Bank
112
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
applied for compulsory execution and got repayment of 1.64 million Yuan, but later due to no property
for execution, Bao'an District People's Court (1997) SBFZZ No. 220 civil ruling paper had the verdict for
termination of execution on May 20, 2003. In June 2004, the original creditor CCB transferred the
above-mentioned creditor's rights to Assets Management Company, after several transfers, Ezhou Liantai
Investment and Consulting Co., Ltd. put forward the creditor's rights in April 2008.
Guangming Watch Company has been revoked license by Shenzhen Industrial and Commercial Bureau
on February 28, 2002. Ezhou Liantai Investment and Consulting Co., Ltd. submitted the case of
Guangming Watch Company and Automobile Industry and Trade Company to Shenzhen Futian District
People's Court in May 2012, requesting to order Guangming Watch Company to pay off 3.607 million
Yuan and the interests from May 11, 2012 to the actual repayment date, and requesting to order
Automobile Industry and Trade Company to assume the joint liability for above-mentioned debts by the
reason of Automobile Industry and Trade Company being its last shareholder, not setting up a liquidation
team for liquidation within the legal time limit, and assuming the joint liability for debts.
In 2013, Shenzhen Futian District People's Court (2012) SFFMECZ No. 4328 paper of civil judgment
determined Automobile Industry and Trade Company to assume the joint liability for debts in (1996)
SZFJYZZ No. 563 paper of civil judgment to the accused, Guangming Watch Company. Automobile
Industry and Trade Company appealed, on December 12, 2013, Shenzhen Intermediate People's Court
(2013) SZFSZZ No. 1677 civil judgment’s final judgment affirmed the original judgment. Automobile
Industry and Trade Company accrued the payable joint liability funds of 2,130,200 Yuan in 2013.
Hua Rong District People's Court of Ezhou City (2008) HMCZ No. 57 civil judgment determined the
accused Ezhou Liantai Investment and Consulting Co., Ltd. to pay the accuser Huizhou Lamei
Information Consulting Co., Ltd. assignment of claims and liquidated damages and also bear the legal
fare. In the executing process, on April 14, 2015, Hua Rong District People's Court of Ezhou City (2015)
EHRZYZ No. 0005 execution ruling added Automobile Industry and Trade Company as the person
subject to enforcement and ordered Automobile Industry and Trade Company to pay the object funds of
4,170,859.54 Yuan. Hua Rong District People's Court of Ezhou City held that the object Guangming
Watch Company should perform is the loan principal of 1.9 million Yuan and the promissory loan interest
of 331,785.60 Yuan from November 21, 1995 to January 22, 1997, with a total of 2,231,785.60 Yuan.
Shenzhen Bao’an District People's Court has executed 1,641,888.10 Yuan, deducting the litigation fee of
21,700 Yuan and execution fee of 28,500 Yuan, up to March 25, 2002, there were still object funds of
1,161,725.65 Yuan and debt interest of 1,274,604.31 Yuan during the delay in performance calculated by
the principle of repayment of principal with interest and debt interest of 1,734,529.5 Yuan caused by
delay in performance from March 25, 2002 to March 30, 2009, principal and interest amounting to
4,170,859.54 Yuan. Automobile Industry and Trade Company proposed an opposition to execution that
Automobile Industry and Trade Company should assume the joint liability for the debts of 258,111.90
Yuan and the interest to be assumed by Guangming Watch Company, and (1996) BFJZ No. 183 litigation
fee of 21,700 Yuan, and (1997) SBFZZ No. 220 case execution fee of 28,500 Yuan.
Ezhou City Intermediate People's Court held that the surplus creditor's rights was non liquet after
113
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Shenzhen Bao'an District People's Court’s execution of (1996) SZFJYZZ No. 563 civil judgment, both
parties had large difference in opinion whether the executed 1.64 million Yuan was just principal or
principal and interest, which was difficult to be determined, therefore, Ezhou City Intermediate People's
Court (2015) EHRZYZ No. 00005 execution ruling was repealed and returned for re-examination.
On July 12, 2017, the Higher People's Court of Guangdong Province issued the Civil Judgment No.
(2016) YMZ 205 and upheld the Civil Judgment No. (2013) SZFSZZ 1677 of Shenzhen Intermediate
People's Court, and this judgment was the final judgment.
⑤ Shenzhen Futian District Construction Bureau made a Written Decision on Paying the Dedicated
Funds for Housing Public Facilities No. SFJJJ (2010) 115 to three construction units of Fu Yi Ya Ju,
including Shenzhen Automobile Industry Trading General Company, Shenzhen Fuyida Investment and
Development Co., Ltd., and Wenzhou Huaou Real Estate Development Co., Ltd. in October 2010, and
ordered the three companies to pay the dedicated funds for housing public facilities of a total of RMB
2,161,910.40 within the time limit. The Company and Shenzhen Fuyida Investment and Development
Co., Ltd. have paid their shares, but Wenzhou Huaou Real Estate Development Co., Ltd. has not yet paid.
Shenzhen Futian District Construction Bureau applied to Futian District People's Court to force the
respondents (above three companies) to fulfill all obligations determined by the written decision.
In May 2017, the Company actually paid the joint liability loss related to the execution case of RMB
758,131.16. After paying the remaining execution funds of the maintenance funds for the real estate, the
Housing and Construction Bureau requested our company to pay the interest penalty for the case. Up to
June 30, 2017, the Company has been communicating with Futian District Housing and Construction
Bureau and the executive board of Futian District People's Court on whether the interest penalty should
be paid and the specific amount.
Influenced by this case, (2015) SFFZHZ No. 452 executed the case, froze and sealed up the following
business registration information, equity and assets:
The business registration information of Shenzhen Automobile Industry Trading General Company was
frozen;
35.75% equity stake of Shenzhen Automobile Industry Import and Export Co., Ltd. held by Shenzhen
Automobile Industry Trading General Company was frozen;
25% equity stake of Shenzhen Dongfeng Motor Co., Ltd. held by Shenzhen Automobile Industry Trading
General Company was frozen;
95% equity stake of Shenzhen Tellus Yongtong Automobile Development Co., Ltd. held by Shenzhen
Automobile Industry Trading General Company was frozen;
The property located at 5B, Building 4, Weipeng Garden, Futian District of Shenzhen Automobile
Industry Trading General Company was seized.
⑥ Shenzhen Nigang Industrial Co., Ltd. prosecuted the attribution of land parcel No. H403-0054(B) to
Shenzhen People's Court of Luohu District in 2016, and the first instance of Shenzhen People's Court of
Luohu District judged that the Company should return the land area of 1,585.84 square meters and pay
114
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
the land use fee of RMB 347,271.74 and then return RMB 7,268 per month to the plaintiff. The Company
appealed to the Higher People's Court of Guangdong Province, up to June 30, 2017, the Company has
counted and withdrawn the losses related to the litigation of RMB 434,487.74.
XI. Events occurring after the balance sheet date
1. Profit distribution
The Company has no plan of cash dividends carried out and capitalizing of common
reserves either
XII. Other important events
1. Previous accounting errors collection
The Company had no previous accounting errors collection in Period.
2. Debt restructuring
The Company had no debt restructuring in Period.
3. Assets replacement
The Company had no non-monetary assets change in Period.
4. Segment
Financial information for reportable segment
Jan.- Jun.2017
Auto Jewelry
Leasing and Offset of
Item Auto sales maintenanc Total
services segment
e and repair operation
Main operating
81,828,629. 30,933,280. 59,669,477.32 432,616.24 -14,542,732.2 158,321,271.6
revenue
57 83 9 7
Main operating cost
80,552,582. 25,502,996. 23,195,618.35 2,538,282.2 -14,618,538.0 117,170,941.7
86 33 7 3 8
Total assets
32,917,126. 98,657,932. 1,983,022,242. 14,455,973. -911,054,418. 1,217,998,855.
16 40 18 67 73 68
Total liabilities
46,119,475. 60,693,706. 556,102,721.7 1,978,405.5 -387,538,846. 277,355,463.7
69 80 0 3 00 2
Jan.- Jun.2016
Auto Offset of
Auto sales Leasing and
Item maintenance segment Total
services
and repair
Main operating revenue
67,525,711.38 42,408,814.86 62,272,010.17 -18,285,084.22 153,921,452.19
Main operating cost
66,364,064.95 36,582,170.38 27,209,948.29 -18,285,084.22 111,871,099.40
Total assets
24,632,259.44 92,225,788.83 1,962,620,091.40 -912,148,674.84 1,167,329,464.83
Total liabilities
39,554,548.10 53,603,597.08 565,862,967.94 -388,249,541.09 270,771,572.03
115
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
XIII. Principle notes of financial statements of parent company
1. Account receivable
(1) Accounts receivable by category
Period-end balance
Category Book balance Bad debt reserve Book
Ratio
Amount Amount Ratio (%) value
(%)
Account receivable with single significant amount and withdrawal bad debt provision
separately
Receivables with bad debt provision accrual by credit portfolio
Accounts with single significant amount and bad debts provision accrued individually 484,803.08 100.00 484,803.08 100.00
Total 484,803.08 100.00 484,803.08 100.00
(Cont.)
Balance at year-begin
Category Book balance Bad debt reserve Book
Ratio
Amount Amount Ratio (%) value
(%)
Account receivable with single significant amount and withdrawal bad debt provision
separately
Receivables with bad debt provision accrual by credit portfolio
Accounts with single significant amount and bad debts provision accrued individually 484,803.08 100.00 484,803.08 100.00
Total 484,803.08 100.00 484,803.08 100.00
2. Other accounts receivable
(1) Classification
Period-end balance
Category Book balance Bad debt reserve
Book value
Amount Ratio (%) Amount Ratio (%)
Other account receivable with
single significant amount and
12,256,478.81 10.80 12,256,478.81 100.00
withdrawal bad debt provision
separately
Other receivables with bad debt
provision accrual by credit 99,388,668.03 87.56 1,047,417.70 1.05 98,341,250.33
portfolio
Other accounts with single 1,858,735.58 1.64 1,858,735.58 100.00
116
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
significant amount and bad debts
provision accrued individually
Total 113,503,882.42 100.00 15,162,632.09 13.36 98,341,250.33
(Cont.)
Balance at year-begin
Category Book balance Bad debt reserve
Book value
Amount Ratio (%) Amount Ratio (%)
Other account receivable with
single significant amount and
12,262,363.72 10.72 12,262,363.72 100.00
withdrawal bad debt provision
separately
Other receivables with bad debt
provision accrual by credit 100,230,803.79 87.65 1,231,153.76 1.23 98,999,650.03
portfolio
Other accounts with single
significant amount and bad debts 1,858,735.58 1.63 1,858,735.58 100.00
provision accrued individually
Total 114,351,903.09 100.00 15,352,253.06 13.43 98,999,650.03
①Other receivable with single significant amount and withdrawal bad debt provision
separately at end of period
Period-end balance
Other receivable(By unit) Other Bad debt Accrual ratio
Accrual reasons
receivable reserve (%)
Shenzhen Zhonghao (Group) Co., 5,000,000.00 5,000,000.00 100.00 Win a lawsuit, no
Ltd. executable assets from
adversary
Gold Beili Electrical Appliances 2,706,983.51 2,706,983.51 100.00 Not expected to collected
Company due to long account age
Shenzhen Petrochemical Group 1,912,849.63 1,912,849.63 100.00 Less likely to collection
Huatong Package Co., Ltd. Not expected to collected
1,212,373.79 1,212,373.79 100.00
due to long account age
Shenzhen Xiandao New Not expected to collected
660,790.09 660,790.09 100.00
Materials Company due to long account age
117
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Other_VAT(trade department) 763,481.79 763,481.79 Not expected to collected
100.00
due to long account age
Total 12,256,478.81 12,256,478.81
③ In combination, other accounts receivable whose bad debts provision was accrued
by age analysis
Period-end balance
A/C age
Other receivable Bad debt reserve Accrual ratio
Within 1 year 97,012,445.28
1-2 years 261,958.19 13,097.91 5.00
2-3 years 76,041.64 15,208.33 20.00
Over 3 years 2,038,222.92 1,019,111.46 50.00
Total 99,388,668.03 1,047,417.70 1.05
(2)Bad debt provision accrual collected or switch back
Amount of bad debt reserve switch back in the year amounted as 189,620.97 Yuan
(3)Classification of other receivables by nature
Nature Closing book balance Book balance at year-begin
Intercourse funds receivable 96,807,496.08 97,287,270.49
between inner units
Intercourse accounts of related 2,885,181.35 2,883,953.25
units receivable
Other 13,811,204.99 14,180,679.35
Total 113,503,882.42 114,351,903.09
(4)Top 5 other receivables at ending balance by arrears party
Ratio in total ending Bad debt
Period-end balance of other reserve
Name of the company Nature A/C age
balance receivables(%) Period-end
balance
Shenzhen Zhonghao (Group)Intercourse Over 3 4.41
5,000,000.00 5,000,000.00
Co., Ltd. funds years
Gold Beili ElectricalIntercourse Over 3 2.38
2,706,983.51 2,706,983.51
Appliances Company funds years
Intercourse Over 3
Shenzhen Petrochemical Group 1,912,849.63 1.69 1,912,849.63
funds years
118
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Ratio in total ending Bad debt
Period-end balance of other reserve
Name of the company Nature A/C age
balance receivables(%) Period-end
balance
Intercourse Over 3 1.07
Huatong Package Co., Ltd. 1,212,373.79 1,212,373.79
funds years
Shenzhen Xinglong MachineryIntercourse Over on 1.96
2,224,391.26 1,016,991.08
Mould Co., Ltd. funds e year
Total 13,056,598.19 11.50 11,849,198.01
(5) Account receivable with government grand involved
No account receivable with government grand involved of the Company at period-end.
(6) Other account receivable derecognition due to financial assets transfer
No other account receivable derecognition due to financial assets transfer of the Company in
Period.
(7) Assets and liabilities resulted by other account receivable transfer and continues
involvement
No assets or liabilities resulted by other account receivable transfer and continues
involvement of the Company in Period.
3. Long-term equity investment
(1) Category of Long-term equity investment
Period-end balance Balance at year-begin
Depreciat
Item Book Book Book Depreciation Book
ion
balance value balance reserves value
reserves
525,771,572 1,956,000. 523,815,572 528,823,572 526,867,572
Investment for subsidiary 1,956,000.00
.73 00 .73 .73 .73
Investment for associates and 166,800,728 9,787,162. 157,013,566 169,145,256 159,358,093
joint venture 9,787,162.32
.51 32 .19 .02 .70
692,572,301 11,743,162 680,829,138 697,968,828 686,225,666
Total 11,743,162.32
.24 .32 .92 .75 .43
(2) Investment for subsidiary
119
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Depreciat
ion Period-end
Balance at Increased in the Decreased in the reserves balance of
The invested entity Period-end balance
year-begin period period accrual depreciation
in the reserves
period
Shenzhen SDG Tellus
31,152,888.87 31,152,888.87
Real Estate Co., Ltd
Shenzhen Tellus Real
2,000,000.00 2,000,000.00
Estate Exchange Co. Ltd
Shenzhen SDG Tellus
Property Management 7,050,000.00 7,050,000.00
Co., Ltd*
Shenzhen Tellus New
Yongtong Automobile 57,672,885.22 57,672,885.22
Development Co. Ltd
Shenzhen Zhongtian
270,708,622.90 270,708,622.90
Industrial Co., Ltd.
Shenzhen Automobile
Industry Trading 126,251,071.57 126,251,071.57
General Company
Shenzhen SDG Huari
Automobile Enterprise 19,224,692.65 19,224,692.65
Co.Limited
Shenzhen Huari
TOYOTA Automobile 1,807,411.52 1,807,411.52
Sales Service Co., Ltd.
Shenzhen New
Yongtong Automobile
10,000,000.00 10,000,000.00
Inspection Equipment
Co. Ltd
Shenzhen Hanli Hi-Tech
1,956,000.00 1,956,000.00 1,956,000.00
Ceramics Co., Ltd.*
Anhui Tellus Starlight 1,000,000.00 3,998000.00 4,998,000.00
120
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Depreciat
ion Period-end
Balance at Increased in the Decreased in the reserves balance of
The invested entity Period-end balance
year-begin period period accrual depreciation
in the reserves
period
Jewelry Investment Co.,
Ltd.
Total 528,823,572.73 3,998000.00 7,050,000.00 525,771,572.73 1,956,000.00
Note: more details of * Shenzhen hanli Hi-Tech Ceramics Co., Ltd. can be seen in Note VIII-1 “Equity of subsidiaries”.
*Shenzhen SDG Tellus Property Management Co., Ltd found more in Note VII- 4.Disposal of subsidiary
(3) Investment for associates and joint venture
+,-
Balance at Other
Capita
The invested entity Investment comprehe Other
Additional l
year-begin gains recognized nsive equity
investment reducti
under equity income change
on
adjustment
I. Joint venture
Shenzhen Tellus Gman Investment Co., Ltd 57,180,913.33 -3,304,695.19
Shenzhen Tellus Hang Investment Co., Ltd. 10,583,444.88 140,991.05
Subtotal 67,764,358.21 -3,163,704.14
II. Associated enterprise
Shenzhen Xinglong Machinery Mould Co.,
15,878,254.74 4,219,677.45 -2,904,933.36
Ltd.
Shenzhen Tellus Auto Service Chain Co.,
Ltd.
Shenzhen Zung Fu Tellus Auto Service Co.,
75,715,480.75 8,604,432.54
Ltd.
Hunan Changyang Industrial Co., Ltd.* 1,810,540.70
Shenzhen Jiecheng Electronic Co., Ltd* 3,225,000.00
Shenzhen Xiandao New Materials 4,751,621.62
Company*
Subtotal 101,380,897.81 4,219,677.45 5,699,499.18
Total 169,145,256.02 4,219,677.45 2,535,795.04
(Cont.)
121
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
+,-
Cash dividend Period-end Period-end balance of
The invested entity or profit
Impairment accrual Other balance depreciation reserves
announced to
issued
I. Joint venture
Shenzhen Tellus Gman
53,876,218.14
Investment Co., Ltd
Shenzhen Tellus Hang
10,724,435.93
Investment Co., Ltd.
Subtotal 64,600,654.07
II. Associated enterprise
Shenzhen Xinglong
17,192,998.83
Machinery Mould Co., Ltd.
Shenzhen Tellus Auto
Service Chain Co., Ltd.
Shenzhen Zung Fu Tellus
9,100,000.00 75,219,913.29
Auto Service Co., Ltd.
Hunan Changyang 1,810,540.70 1,810,540.70
Industrial Co., Ltd.*
Shenzhen Jiecheng 3,225,000.00 3,225,000.00
Electronic Co., Ltd*
Shenzhen Xiandao New 4,751,621.62 4,751,621.62
Materials Company*
Subtotal 9,100,000.00 102,200,074.44 9,787,162.32
Total 9,100,000.00 166,800,728.51 9,787,162.32
4. Operating income and operating cost
Jan.- Jun.2017 Jan.- Jun.2016
Item
Income Cost Income Cost
Main business 21,455,828.43 1,800,520.02 21,654,258.03 1,787,004.39
Total 21,455,828.43 1,800,520.02 21,654,258.03 1,787,004.39
5. Investment income
Item Jan.- Jun.2017 Jan.- Jun.2016
Long-term equity investment measured by
costs
Long-term equity investment measured by 5,721,803.49 2,579,910.59
122
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Jan.- Jun.2017 Jan.- Jun.2016
equity
Investment income from disposal of 7,100,000.00
long-term equity investment
Investment income of financial products 1,618,165.59 2,173,178.10
during the holding period
Total 14,439,969.08 4,753,088.69
XIV. Supplementary Information
1. Details of non-recurring gains and losses in Year
Item Amount Note
Including: equity t
Gains/losses from disposal of non-current asset 4,967,267.25 ransfer income 4.9
2 million Yuan
Tax refund or mitigate due to examination-and-approval beyond power or without
official approval document or accident
Government subsidies included in current gains and loss (excluding those closely in
accordance with corporation business and enjoyed according to fixed amount under
national united standard)
Capital occupancy expense, collected from non-financial enterprises and recorded
in current gains and losses
Income from the exceeding part between investment cost of the Company paid for
obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair
value attributable to the Company when acquiring the investment
Gains and losses from exchange of non-monetary assets
Income from
Gains and losses from assets under trusted investment or management
1,790,968.34
financial products
Various provision for impairment of assets withdrew due to act of God, such as
natural disaster
Gains and losses from debt restructuring
Enterprise reorganization expense, such as expenses from staffing and integrated
cost etc.
Gains and losses of the part arising from transaction in which price is not fair and
exceeding fair value
Current net gains and losses occurred from period-begin to combination day by
subsidiaries resulting from business combination under common control
Gains and losses arising from contingent proceedings irrelevant to normal operation
of the Company
123
深圳市特力(集团)股份有限公司 2017 年半年度财务报表附注
Item Amount Note
Except for effective hedge business relevant to normal operation of the Company,
gains and losses arising from fair value change of tradable financial assets and
tradable financial liabilities, and investment income from disposal of tradable
financial assets, tradable financial liabilities and financial assets available for sale
Switch-back of provision of impairment of account receivable which are treated with
separate depreciation test 5,884.91
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of investment real estate whose
follow-up measurement are conducted according to fair value pattern
Affect on current gains and losses after an one-time adjustment according to
requirements of laws and regulations regarding to taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the aforementioned ones
261,331.17
Other gains and losses items complying with definition for non-current gains and
losses
Subtotal 7,025,451.67
Affect on income tax
30,378.16
Affect on minority equity(after tax)
103,214.53
Total 6,891,858.98
Note: as for the numbers of non-recurring gains/losses, “+” stands for income or earnings,”-“stands for losses or expenses
The Company recognizes non-recurring profit or loss items according to Information Disclosure
Explanatory Document Announcement No.1 for Public Listed Issuer- Non-recurring Profit or Loss
(ZJHGG[2008]43).
2. REO and earnings per share
Weighted average
Profits during report period Earnings per share
ROE (%) Basic EPS Diluted EPS
Net profits belong to common stock stockholders of the
2.71 0.0827 0.0827
Company
Net profits belong to common stock stockholders of the
1.95 0.0596 0.0596
Company after deducting nonrecurring gains and losses
124
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