金螳螂：2020年年度报告（英文版）

Suzhou Gold Mantis Construction Decoration Co. Ltd.Annual Report 2020
April 2021
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the
directors supervisors and senior management of Suzhou Gold Mantis Construction
Decoration Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the
contents of this Report are true accurate and complete and free of any misrepresentations
misleading statements or material omissions and collectively and individually accept legal
responsibility for such contents.Wang Hanlin the Company’s legal representative Cai Guohua the Company’s Chief
Financial Officer (head of the Company’s accounting affairs and accounting department)
hereby guarantee that the financial statements carried in this Report are truthful accurate
and complete.
All the directors of the Company attended in person the board meeting for the approval
of this Report.
Any plans development strategies and other forward-looking statements mentioned in
this Report shall not be considered as commitments to investors. Investors and those
concerned shall be sufficiently aware of the risks and understand the differences between
plans and forecasts and commitments.The Company may be exposed to risks associated with prospects of the macro-economy
real estate control policies market competition doubtful accounts receivable and
management capability in the expanding business. Therefore investors are reminded to
exercise caution when making investment decisions. For further information please refer to
contents under the heading “Part IV Management Discussion and Analysis” herein.The Board has approved a final dividend plan as follows: based on 2683358689 shares
a cash dividend of RMB2 (tax inclusive) per 10 shares is planned to be distributed to all the
shareholders with no bonus issue from either profit or capital reserves.This Report has been prepared in Chinese and translated into English. Should there be
any discrepancies or misunderstandings between the two versions the Chinese version shall
prevail.Table of Contents
Part I Important Notes Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Business Summary ............................................................................................................. 11
Part IV Management Discussion and Analysis .............................................................................. 19
Part V Significant Events................................................................................................................. 37
Part VI Share Changes and Shareholder Information ................................................................. 75
Part VII Preference Shares.............................................................................................................. 84
Part VIII Convertible Corporate Bonds ........................................................................................ 85
Part IX Directors Supervisors Senior Management and Staff ................................................... 86
Part X Corporate Governance ........................................................................................................ 97
Part XI Corporate Bonds .............................................................................................................. 106
Part XII Financial Statements....................................................................................................... 107
Part XIII Documents Available for Reference ............................................................................. 337
Definitions
Term Definition
The “Company” or “Gold Mantis” Suzhou Gold Mantis Construction Decoration Co. Ltd.The “Articles of Association”
The Articles of Association of Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Meiruide Suzhou Meiruide Construction Decoration Co. Ltd.Gold Mantis Curtain Wall Suzhou Gold Mantis Curtain Wall Co. Ltd.Gold Mantis Landscape Suzhou Gold Mantis Landscape Co. Ltd.Gold Mantis Prefabricated Construction Technology Gold Mantis Prefabricated Construction Technology (Suzhou) Co. Ltd.Refined Decoration & Technology Gold Mantis Refined Decoration & Technology (Suzhou) Co. Ltd.Singapore Gold Mantis Singapore Gold Mantis Pte. Ltd.
HBA HBA Holdings Pte. Ltd.
Gold Mantis International Gold Mantis (International) Construction Decoration Limited
Gold Mantis Art Gold Mantis Art Co. Ltd.Jijia Materials Suzhou Jijia Materials Co. Ltd.Gold Mantis Municipal Gold Mantis Municipal Engineering Construction (Guizhou) Co. Ltd.Gold Mantis East China Gold Mantis East China Construction Decoration Co. Ltd.
Archi-Feeling Design Archi-Feeling Design (SuZhou) Co. Ltd.
Jinpu No. 9 Suzhou Jinpu No. 9 Cultural Industrial Development Co. Ltd.Gold Mantis Home Gold Mantis Home Decoration E-commerce (Suzhou) Co. Ltd.Gold Mantis Supply Chain Gold Mantis Supply Chain Management (Suzhou) Co. Ltd.
Construction Investment Suzhou Gold Mantis Construction Investment Co. Ltd.
Jindejin Construction Suzhou Industrial Park Jindejin Construction Engineering Co. Ltd.Xi’an Jinchuang
Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and
Development Co. Ltd.
Shuicheng Ruitong Shuicheng Ruitong Construction and Development Co. Ltd.RSM RSM China
CSRC China Securities Regulatory Commission
CSRC Jiangsu The Jiangsu branch of the China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
The website of cninfo http://www.cninfo.com.cn
The Four Major Securities Newspapers
China Securities Journal Shanghai Securities News Securities Times and
Securities Daily
RMB RMB’0000
Expressed in the Chinese currency of Renminbi expressed in tens of
thousands of Renminbi
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Gold Mantis Stock code 002081
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 苏州金螳螂建筑装饰股份有限公司
Abbr. 金螳螂
Company name in English (if
any)
Suzhou Gold Mantis Construction Decoration Co. Ltd.
Abbr. (if any) Gold Mantis
Legal representative Wang Hanlin
Registered address Private Industrial Zone of Suzhou Industrial Park
Zip code 215000
Office address No. 888 West Ring Road Suzhou City Jiangsu Province China
Zip code 215004
Company website www.goldmantis.com
Email address tzglb@goldmantis.com
II Contact Information
Board Secretary Securities Representative
Name Ning Bo Wang Yang
Office address
No. 888 West Ring Road Suzhou City
Jiangsu Province China
No. 888 West Ring Road Suzhou City
Jiangsu Province China
Tel. 0512-68660622 0512-68660622
Fax 0512-68660622 0512-68660622
Email address tzglb@goldmantis.com tzglb@goldmantis.com
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for
information disclosure
China Securities Journal Securities Daily Securities Times and Shanghai
Securities News
Website designated by the CSRC for publication of
this Report
www.cninfo.com.cn
Place where this Report is lodged Shenzhen Stock Exchange and No. 888 West Ring Road Suzhou City
Jiangsu Province China
IV Change to Company Registered Information
Organization code 91320000608285139H (unified social credit code)
Changes to the principal activities of the
Company since its listing (if any)
1. According to the resolution of the Company's 1st Extraordinary General Meeting of
2008 the following business activities were added to the Company's business scope:
"contracting of overseas construction decoration and curtain wall engineering as well
as domestic projects put out to international tender; contracting of the survey
consulting design and supervision of the aforesaid overseas projects; export of the
equipment and materials required for the aforesaid overseas projects; dispatch of leased
employees needed to implement the aforesaid overseas projects". The Company went
through the relevant formalities for registration amendment at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the laws on 29 April
2008. 2. According to the resolution of the Company's 2nd Extraordinary General
Meeting of 2008 the following business activities were deleted from the Company's
business scope: "construction of housing with a height of no more than eight floors and
a span of no more than 18 meters as well as structures with a height of no more than 30
meters; undertaking of building intelligent systems engineering (with qualification
certificate)". Moreover the following business activities were added to the Company's
business scope: "Urban landscape design (with qualification certificate); des ign and
construction of ancient-style landscaping (with qualification certificate); fire-fighting
facility design (with qualification certificate)". The Company went through the relevant
formalities for registration amendment at the Administration for Industry and
Commerce of Jiangsu Province in accordance with the laws on 16 March 2009. 3.
According to the resolution of the Company's 1st Extraordinary General Meeting of
2009 the following business activities were added to the Company's business scope:
"steel structure engineering construction (with qualification certificate); light steel
structure engineering design (with qualification certificate)". The Company went
through the relevant formalities for registration amendment at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the laws on 30 June
2009. 4. According to the resolution of the Company's 2nd Extraordinary General
Meeting of 2014 the following business activities were added to the Company's
business scope: "design and construction of indoor and outdoor artworks for all kinds
of buildings; design and construction of soft decoration accessories; design and
construction of environmental way-finding systems". The Company went through the
relevant formalities for registration amendment at the Administration for Industry and
Commerce of Jiangsu Province in accordance with the laws on 24 December 2014. 5.
According to the resolution of the Company's 2nd Extraordinary General Meeting of
2016 the following business activities were added to the Company's bus iness scope:
"architectural engineering procurement construction; undertaking of urban and road
lighting projects; sale of building materials". The Company went through the relevant
formalities for registration amendment at the Administration for Industry and
Commerce of Jiangsu Province in accordance with the laws on 8 October 2016. 6.
According to the resolution of the Company's 2017 Annual General Meeting the
following business activities were added to the Company's business scope:
"development and transfer of construction decoration design technologies". The
Company went through the relevant formalities for registration amendment at the
Administration for Industry and Commerce of Jiangsu Province in accordance with the
laws on 1 June 2018.
Every change of controlling shareholder
since incorporation (if any)
Unchanged
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor RSM China
Office address
Suite 922-926 9/F Wai Jing Mao Building Tower 1 No. 22 Fuchengmen Wai Street Xicheng
District Beijing China
Accountants writing signatures Song Wen Hong Zhiguo and Long Bing
The independent sponsor appointed by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor appointed by the Company to exercise constant supervision over the Company in the Reporting
Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes √ No
2020 2019
2020-over-2019
change (%)
2018
Operating revenue (RMB) 31243227802.04 30834654530.30 1.33% 25088596105.75
Net profit attributable to the listed
company’s shareholders (RMB)
2373915319.52 2349395605.96 1.04% 2123411594.37
Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses (RMB)
2289281453.97 2360608057.36 -3.02% 2063151229.61
Net cash generated from/used in
operating activities (RMB)
1777115242.16 1755219982.71 1.25% 1649422128.02
Basic earnings per share (RMB/share) 0.88 0.88 0.00% 0.80
Diluted earnings per share
(RMB/share)
0.89 0.88 1.14% 0.79
Weighted average return on equity 14.83% 16.55% -1.72% 17.16%
(%)
31 December 2020 31 December 2019
Change of 31
December 2020 over
31 December 2019
(%)
31 December 2018
Total assets (RMB) 45003313428.27 39473391654.97 14.01% 33303504011.86
Equity attributable to the listed
company’s shareholders (RMB)
17008652023.81 15156092842.89 12.22% 13233225823.64
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and
losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and
losses was negative.□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4320876652.08 8893818980.65 8853108445.37 9175423723.94
Net profit attributable to the listed
company’s shareholders
334951682.26 671096020.63 707490182.55 660377434.08
Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses
326773637.47 642556879.91 699156033.38 620794903.21
Net cash generated from/used in -1880564984.49 1370506956.02 -156900979.34 2444074249.97
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been
disclosed in the Company’s quarterly or interim reports.□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs)
16701006.66 -26506540.38 -2434916.72
Government grants through profit or loss (exclusive of government
grants given in the Company’s ordinary course of business at fixed
quotas or amounts as per the government’s uniform standards)
54243752.72 19660084.94 20910821.56
Capital occupation charges on non-financial enterprises that are
recognized in profit or loss
1428722.80 1907117.77
Gain or loss on assets entrusted to other entities for investment or
management
40843523.94 39009978.18
Gain or loss on fair-value changes on held-for-trading and
derivative financial assets and liabilities & income from disposal of
held-for-trading and derivative financial assets and liabilities and
other debt investments (exclusive of the effective portion of hedges
that arise in the Company’s ordinary course of business)
35346523.09 -59789345.26
Reversed portions of impairment allowances for receivables and
contract assets which are tested individually for impairment
3356920.55 15585608.47
Non-operating income and expense other than the above -3385100.86 1010129.80 349977.29
Less: Income tax effects 19092692.94 -7656454.79 12924997.05
Non-controlling interests effects (net of tax) 3965266.47 -4006123.00 236106.97
Total 84633865.55 -11212451.40 60260364.76 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.Part III Business Summary
I Principal Activities of the Company in the Reporting Period
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(I) Core Business of the Company
The Company is a comprehensive and professional construction decoration group with interior decoration as the core business
which also provides curtain wall engineering landscaping soft decoration furnishing and mechanical and electrical equipment
installation. Projects undertaken by the Company include public construction decoration and residential decoration covering various
business forms such as hotel decoration cultural sports and exhibition construction decoration commercial construction decoration
transport infrastructure decoration and residential decoration. The Company possesses the Construction Engineering Contractor
(Class One) the Construction Decoration Engineering Professional Contractor (Class One) and the Construction Decoration
Engineering Design (Class A) among other qualification certificates. With the qualifications and capabilities to carry out various
construction decoration projects the Company is one of the construction decoration providers with the highest qualification levels
and the most qualification types. Its design and construction projects are generally obtained through bidding and bid invitation.
During the Reporting Period there were no significant changes in the Company's core business.
(II) Development Overview of the Industry
1. Main Features of the Industry
The construction decoration industry in which the Company operates is an important part of China's national economic
development. According to the different nature of building use the construction decoration industry is divided into public
construction decoration and residential decoration. Under the trend of consumption upgrade the construction decoration industry has
the characteristic of repeated implementation. Each building needs to be decorated and furnished multiple times during the entire life
cycle from the completion of the main structure to the end of its service life. Therefore the construction decoration industry features
demand sustainability.
2. Development Status of the Industry
In 2020 the construction decoration industry started low but later grew better. In H1 affected by the COVID-19 pandemic
business activities were greatly restricted. With the domestic economic resurgence in H2 investment in fixed assets rose slowly and
the industry showed a momentum of rapid recovery. In respect of specific business segments the number of new-type people's
livelihood projects such as medical care elderly care culture and sports and transport grew rapidly; hotels tourism and other
consumption upgrade projects picked up slowly; traditional projects remained stable. At the same time as large-scale and
comprehensive projects increased the engineering procurement construction (EPC) model of decoration projects was gradually
recognized by the market. Leading enterprises would usher in new development opportunities.
3. Competitive Landscape and Development Trend of the Industry
In 2020 the domestic construction decoration market showed more obvious differentiation under the impact of the pandemic
and the intensification of internal competition. Specifically market shares of the industry's top companies kept expanding their cash
flow remained healthy and they continued to develop new business and new technologies; in the face of significantly greater
competitive pressure development speeds of mid-market companies slowed down; small companies in the industry were phased out
of the market due to business shrinking and capital chain tightness. Therefore the decoration industry is currently in a stage of
accelerated transition from a decentralized market to a centralized market. After a long period of sufficient market competition
industry concentration has begun to increase dramatically. The market shares of leading companies will continue to rise in the future.
4. Position of the Company in the Industries in which the Company Operates
Founded in 1993 the Company is headquartered in Suzhou China. It is a comprehensive construction decoration contractor that
is mainly engaged in the design and construction of construction decorations. With full-industry-chain design and construction
service capacities on interior decoration curtain wall engineering landscaping soft decoration furnishing and mechanical and
electrical equipment installation the Company is a leader in the green environmentally friendly and healthy public and home
decoration industry as well as a national high-tech enterprise.The Company is the first listed company in China's construction decoration industry. Its stock name is "Gold Mantis" and its
stock code is "002081". The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration Industry
Top One Hundred" for successive years and has won the "Luban Prize" 115 times and the "China Construction Engineering
Decoration Award" 438 times accumulatively. It was once rated among "Asia's Fab 50" by the Forbes magazine of the United States
selected as one of the "China Business Top 100" conferred the "Golden Round Table: Value Creation Award for Board of Directors"
given the "Quanjing Investor Relations Gold Award (2020)" and shortlisted for the "ENR Top 60 Chinese Design Firms" in addition
to receiving the "Most Influential Brand Organization in China's Architectural Decoration Industry" the "National Excellent
Construction Enterprise" the "Excellent Decoration Enterprise in Jiangsu Province" and many other honors. Furthermore due to the
Company's remarkable achievements and development results in standardized design industrialized production prefabricated
construction integrated decoration information-based management and intelligent application the Company has become one of the
first to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry of Ho using and
Urban-Rural Development of the People's Republic of China.Meiruide a subsidiary of the Company has earned a spot in "The Enterprises of China's Building Decoration Industry Top One
Hundred" for many consecutive years. It has won the "Luban Prize" six times the "China Construction E ngineering Decoration
Award" 42 times and the "Tien-yow Jeme Prize" two times. Haimen People's Hospital Suzhou Rail Transit (Line 1 Line 2 and Line
4) Longfor Times Paradise Walk Donghu Digital Town Banyan Tree Jiuzhaigou and Suzhou Modern Media Plaza are all its
representative works.Gold Mantis Curtain Wall was recognized as a "National Excellent Enterprise in Curtain Wall Building Industry" and an
"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" six times and the "China Construction
Engineering Decoration Award" 21 times. Its key technology innovation and application of the ultra-long special-shaped grid
structure "Wings of Future" at Suzhou Center Mall received the "China Award for Science and Technology in Construction (First
Prize)" given by the Ministry of Housing and Urban-Rural Development; the Gate of the Orient and InterContinental Shanghai
Wonderland took the "Tien-yow Jeme Civil Engineering Prize" awarded by the China Civil Engineering Society.Gold Mantis Landscape was named one of the "National Top 50 Urban Landscaping Enterprises" and clinched the title of
"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" one time the "National Construction Decoration
Industry Science and Technology Demonstration Project Award" six times the "National Excellent Landscaping Project Award"
seven times and the "National Science and Technology Innovation Achievement Award" 17 times. Its representative works include
Datang Everbright City in Xi'an Haohe Scenic Area in Nantong of Jiangsu Province Nanhu Wetland Park in Huaibei of Anhui
Province south bank greening of Hebi Qihe River demonstration zone in Henan Province and Weng'an wetland park design and
construction integration in Guizhou Province.
HBA has been consecutively rated as "No. 1 in the hotel design industry" by Interior Design for years. So far HBA has received
more than 500 top awards in the design industry including the Gold Key Awards the Hospitality Design Awards the Perspective
Magazine Awards the Boutique Design Awards and the European Hotel Design Awards. Its works are spread all over the world.
Edgewood Tahoe Resort Hyatt Regency Dubai InterContinental Hotel London Park Lane Mandarin Oriental Beijing Fairmont
Maldives Sirru Fen Fushi Le Méridien Zhongshan Artyzen Sifang Nanjing Recreation Center Park Hyatt Suzhou and many other
HBA projects of different sizes around the world all have ingenious design styles.
(III) Operation Model of the Company
The Company's operation model was independent undertaking of business independent organization of design or/and
construction. During the Reporting Period there were no significant changes in the Company's operation model. The Company was
an excellent decoration enterprise in Jiangsu Province. It attached importance to quality management. In particular the Company has
passed the integrated certification of the ISO 9001 Quality Management System the ISO 14001 Environmental Management System
and the ISO 45001 Occupational Health and Safety Management System developed quality control standards quality control
measures and product quality dispute resolution schemes and implemented strict quality control and supervision on each process of
design and construction to create an excellent quality management system.
Design Business Flow of the Company
Information acquisition
Design project
establishment
Contract signing
Contract implementation
Conceptual design Schemat ic design Design development Construction documents On-site service
Complet ion and acceptance
Delivery to owners
Summarization for
improvement
Construction Business Flow of the Company
Business tracking
Analysis and review
Give up?
Give up
Bidding project
establishment
Bidding phase
Unsuccessful
(summarization and review)
Successful (contract
presentation)
Project team format ion
Preliminary p lanning
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(IV) During the Reporting Period the Company had no major project quality problems.II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
Equity assets No significant change
Fixed assets No significant change
Intangible assets No significant change
Construction in progress No significant change
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(1) Brand Strengths
The Company attached great importance to product quality and customer service. Accordingly it has adopted a business
philosophy where quality was cherished as the life of the Company and customers were put at the center of everything the Company
does. After years of hard work dedicated to its original aspirations Gold Mantis has formed its own strong brand strengths and
market reputation. The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration Industry Top
One Hundred" for successive years and has won many honors including the "Luban Prize" 115 times and the "China Construction
Engineering Decoration Award" 438 times accumulatively. It continued to be the enterprise that has received the most of these two
awards in China's construction decoration industry. Furthermore due to the Company's remarkable achievements and development
results in standardized design industrialized production prefabricated construction integrated decoration information-based
management and intelligent application the Company has become one of the first to be recognized as a national "prefabricated
construction industrial base" by the General Office of the Ministry of Housing and Urban-Rural Development of the People's
Republic of China. Gold Mantis has grown to be a benchmark brand in China's construction decoration industry.
(2) Design Strengths
Design is the core of construction decoration. The Company had the world's largest team of interior designers. It has also
established a professional design platform as a support system and leveraged its comprehensive service advantages to form
absolutely leading design expertise and professional knowledge in the design of high-end hotel office buildings cultural and sports
venues cultural landmarks hospitals etc. thereby receiving high praise from the owners. The Company's subsidiary HBA was a
company that focused on the interior design of hotels. It maintained long-term harmonious cooperative relations with international
hotel management groups including Four Seasons Marriott Hyatt InterContinental Starwood Hilton Shangri-La Kempinski and
Accor as a provider of interior design services for their brand hotels. HBA's works since its establishment may be found in 80
countries/regions. It has completed more than 1000 five-star hotel projects at home and abroad. In the future Gold Mantis will
continue to deal with various market segments through resource integration strive to achieve industry leadership in all segments
continuously improve the core competitiveness of Gold Mantis design and develop itself into China's No.1 decoration design brand.
(3) Supply Chain System Strengths
In front of increasingly fierce competition in the market in order to maintain the Company's long-term stable growth in-depth
supply chain integration was an important step to achieve cost reduction and efficiency increase. The Company has been improv ing
its supply chain management mechanism. By optimizing resource integration and refining management modules it has created a
large-scale engineering management platform for centralized procurement and centralized bidding which provided strong support for
bidding and cost control realizing economies of scale while preventing the occurrence of bad problems to t he maximum extent
practicable based on which the Company had an absolute leading advantage in the industry. On top of that the Company has
developed a multi-dimensional internally integrated operations system connecting design construction procurement and other
processes to optimize products funds and services through supply chain integration. Furthermore the Company has also built a
supply chain integration system set with win-win and service as the guiding ideology. Through the design of a competitive quality
service and price system the Company might not only better achieve the win-win of customers partners and itself but also improve
the vitality of its sustainable development.
(4) Management System Strengths
In the face of the huge and complex construction decoration market insufficient management capabilities have become an
important factor restricting the development of the industry. Gold Mantis witnessed the development of China's construction
decoration industry all the way. In recent years the Company has comprehensively improved its management level with
information-based refined and standardized management as the lever: Regarding information-based management the Company has
created a corporate management cockpit to accurately plan and manage the key time points of project schedules and quality. The
colors of red yellow and green were used for clear identification. Additionally the Company cooperated with the project
management center in following up on coordinating and solving project schedules and quality warnings. In terms of refined
management the Company had a large marketing platform a professional design platform a large-scale engineering management
platform and a large risk control platform to accurately manage and share data flow capital flow and information flow. Through the
bridging of different management modules decision making has been made more scientific and efficient and the Company's
business response and execution have been accelerated. These platforms have become a powerful tool for the Company to enhance
its management capabilities. As for standardized management the Company has established a standardized procedure for complete
business handling from marketing to supply chain and then to construction. The popularization and application of the standardization
concept have greatly improved the accuracy and timeliness of management as well as reduced management costs and management
loopholes. In the future the Company will continue to promote the betterment of all management levels in order to achieve the
business objective of reducing costs and increasing efficiency.
(5) Technology Strengths
In recent years the construction decoration industry has made great progress in construction processes relying on technological
upgrading. Scientific and technological elements have gradually become more pervasive. As an industry leader the Company has
always led the development of BIM VR prefabricated decoration and other key technologies in the industry. Its research and
development of a BIM system adapted to the decoration industry has effectively improved the efficiency and quality of project
management and also enhanced the level of service. The VR technology was used to allow designers and owners to experience the
space and effects as if they were there in person so that the entire process from design to construction is clear and transparent not
merely greatly increasing efficiency but also reducing costs in marketing design and construction.The Company was also actively making business arrangements for the field of prefabricated construction decoration. It was one
of the first to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry of
Housing and Urban-Rural Development of the People's Republic of China. The Company actively organized and participated in the
preparation of quality and technical standards related to the construction decoration industry. It was the chief editor of the Technical
Procedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration Association and
the Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province and a co-editor of multiple
prefabrication-related standards and specifications. Over the years Gold Mantis's development of construction technologies and
research in the field of R&D and innovation have become core competitive edges of the Company.Part IV Management Discussion and Analysis
I Overview
During the Reporting Period the Company actively overcame the negative impact of the pandemic by exploring new
opportunities in the crisis and breaking new grounds amid changes. In response to the business needs of the post-pandemic world the
Company placed its focus on the in-depth development of the EPC prefabrication and redecoration markets and continuously
optimized its business structure to further expand its market share and leading advantage in the industr y.
1. A new growth curve has been started by riding the wind of industry integration and hoisting the sail of EPC
development.
EPC is an important change in the forms of tendering in the industry. It transcends the original separation between design an d
construction and solves the problem of project bidding by section which is the only way for the decoration industry to mature. In
recent years with the rapid increase in the proportion of the Company's large-scale decoration orders the EPC model has become an
important direction for the strategic layout of the Company. The Company is making every effort to turn it into a new growth pole of
business. While fully integrating full-industry-chain supporting advantages such as design construction landscaping and curtain wall
engineering as well as comprehensive project management strengths the Company took the lead in the active exploration of its own
advantageous fields including hotels venues and cultural tourism vigorously developing EPC projects to start a new growth curve.
At present the Company has selected elites from design marketing construction and other departments to form an EPC special
business department responsible for the in-depth study of EPC project rules. The trump-card competitiveness of Gold Mantis EPC
projects has been created with top design abilities as a drive complete full-industry-chain capacities as a support and excellent
project management capabilities as a guarantee. In the process of project design the Company scientifically planned project progress
through the EPC cloud design platform effectively solving the connection problem between design and later construction.
Construction according to project schedules was thereby ensured. In the procurement process the Company made accurate
calculations about all kinds of raw materials for projects with the help of the large-scale engineering management platform and the
cost control center to minimize project costs. During construction owing to the comprehensive application of technologies such as
prefabrication the standardization and normalization of the construction process were realized which effectively guaranteed the
quality of construction. Step by step Gold Mantis is currently on its way to a win-win of greater satisfaction from customers better
profit margin and cash flow for the Company and higher economic value to society in the EPC field.
For the Company's EPC business the vast market space presented a historic development opportunity. In order to make EPC
business an important force for the Company's leap-forward development in the new stage the Company will continue to pursue
excellence uphold first-class quality establish industry standards and set an industry benchmark.
2. Through consolidation and innovation prefabricated decoration has entered the fast lane of development.
Gold Mantis has adhered to the people-oriented and technology-empowered strategic vision all along in planning and deploying
cutting-edge technologies in the industry. Under the corporate mission of living environment improvement the Company has been
promoting the innovation and upgrading of industry technologies so that it was always at the forefront of industrial upgrading.In the field of prefabricated decoration after years of prefabrication technology R&D and accumulation product upgrading an d
iteration have become a constant state for the Company. At present the Company has built a digital prefabrication system integrating
four dimensions developed a management system that covers the entire project life cycle in the aspects of standardized design
industrialized production part assembly and digital integrated operations and gained a wealth of project experience. Standardized
design was coordinated by the Company's leading BIM technology to ensure the integration of construction design and decoratio n
design. Buildings equipment and pipelines did not conflict with decoration so that accurate installation could be realized in the later
stage. Industrialized production unified the design standards models specifications and quality of components fundamentally
solving the pain point of the construction decoration industry that normalization was difficult to achieve. Part assembly relied on the
Company's top talent training system. It could continuously output professional management talent and industrial workers. As a
result multiple projects in different cities could start simultaneously. Moreover the Company's ability to undertake projects could be
improved through reproducible flat on-site installation. Digital integrated operations were empowered by the Company's original
prefabrication cloud platform and BIM technology which enabled fully digital management featuring one-click export of material
lists one-click export of construction drawings and VR scene application providing full-industry-chain services covering aesthetics
functions personalization and nationwide implementation.The Company adhered to the dual drives of independent originality and joint R&D. By absorbing top expert resources in the
industry it focused on the rapid promotion and implementation of prefabricated decoration technology. It had a cooperation
agreement with the Center of Science and Technology & Industrialization Development of the Ministry of Housing and Urban-Rural
Development to jointly build an Internet platform for the prefabricated decoration industry and an innovation and exhibition center
for prefabricated decoration products with informatization digitization and intelligentization as driving forces. Additionally the
Company and Chengdu City Construction Investment & Management Group (CDCI) will share resources in prefabrication project
undertaking technology R&D and resource integration according to their cooperation agreement to seize the first-mover advantage.
At present the Company has become one of the first to be recognized as a national "prefabricated construction industrial base" by the
General Office of the Ministry of Housing and Urban-Rural Development of the People's Republic of China. It was the chief editor of
the Technical Procedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration
Association and the Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province and a co-editor of
multiple prefabrication-related standards and specifications. Among them the Technical Procedures and Regulations for
Prefabricated Decoration of Jiangsu Province has been published. As a leader in the industry the Company will never abandon the
mission of leading the development trend of the industry. In the future it will form a leading edge in terms of efficiency quality and
cost and make market breakthroughs from point to plane.
3. A trillion level blue ocean of décor-changing redecoration has been opened up
Every building has a need for periodic renewal and renovation during its service life. Therefore the development of the
construction decoration industry has a certain multiplier effect and the characteristic of market demand sustainability. With China's
rapid development in the field of infrastructure in the past two decades the current existing stock market is huge. Redecoration has
become a large blue ocean market in the decoration industry.
At present the Company's redecoration business focuses on large-scale cultural tourism venues and hotels. After years of
in-depth development in the industry the Company has accumulated a large number of domestic high-quality customer resources.Through the formation of a professional redecoration team combined with its advantages in EPC and prefabrication the Company
will effectively seize market opportunities. In the future with the development of economy and society and the further improvement
of the level of urbanization the decoration demand for renovation and reconstruction will increase continuously and the Company
will have a broad and sustainable space for business development.
4. Corporate moat and barrier advantages have been continuously improved
While maintaining sustained business development the Company has been constantly consolidating its core strengths. In
particular extra efforts have been devoted to platform capabilities and refined management to build a stronger moat.In respect of platform building the construction of a large marketing platform a large-scale engineering management platform
and a design platform has been very effective giving full play to the barrier advantage of leading the industry. The large marketing
platform has enabled the Company's market shares in accessible markets to maintain long-term growth and the order structure has
been significantly optimized. Multi-dimensional modular management from the early market analysis and project evaluation to the
middle resource integration and then to the later payment collection has been realized forming a strong support for the Company's
business growth. Through centralized bidding centralized procurement and centralized allocation modules the large-scale
engineering management platform has achieved the important goals of pooling resources reducing costs and increasing efficiency.The management of each construction line has also been deepened so that the quality schedule safety payment collection and other
dimensions of projects in progress could be supervised in an all-around way. Meanwhile the management radius has been expanded.The design platform focuses on brand building. It was intended to enhance the influence of the Company's design brand by
constantly creating quality projects with top influence and to continuously improve the construction conversion rate of projects with
such driving force so as to expand the Company's presence from design business to construction business and comprehensively
increase the Company's market share in the high-quality project market.When it came to refined management Gold Mantis has independently researched and developed an ERP system a BI
management cockpit and a project management command center. It has devised unified administration finance supply chain pro ject
support and other information-based management means to achieve whole-process all-round and real-time project monitoring and
scientific data-based management process to ensure the on-time and high-quality completion of projects.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2020 2019
Change (%)
Operating revenue
As a % of total
operating revenue
(%)
Operating revenue
As a % of total
operating revenue
(%)
Total 31243227802.04 100% 30834654530.30 100% 1.33%
By operating division
Construction
decoration
30117163022.25 96.40% 29921660214.19 97.04% 0.65%
Manufacturing 954085964.93 3.05% 810671363.32 2.63% 17.69%
Others 171978814.86 0.55% 102322952.79 0.33% 68.07%
By product category
Decoration 27939943817.80 89.43% 27172714036.71 88.12% 2.82%
Curtain wall 1637205437.26 5.24% 1726158637.26 5.60% -5.15%
Design 1501558913.30 4.81% 1823521929.28 5.91% -17.66%
Others 164519633.68 0.53% 112259927.05 0.36% 46.55%
By operating segment
Within Jiangsu
Province
8501664546.85 27.21% 8582743663.41 27.83% -0.94%
Outside Jiangsu 22741563255.19 72.79% 22251910866.89 72.17% 2.20%
Province
(2) Operating Division Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
Unit: RMB
Operating revenue Cost of sales
Gross profit
margin
YoY change in
operating revenue
(%)
YoY change in
cost of sales (%)
YoY change in
gross profit
margin (%)
By operating division
Construction
decoration
30117163022.25 25135776779.73 16.54% 0.65% 2.96% -1.87%
By product category
Decoration 27939943817.80 23605931194.94 15.51% 2.82% 4.78% -1.58%
By operating segment
Within Jiangsu
Province
8501664546.85 6806513557.13
19.94% -0.94% 6.56% -5.64%
Outside Jiangsu
Province
22741563255.19 19251921586.10
15.34% 2.20% 2.53% -0.27%
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
√ Applicable □ Not applicable
Unit: RMB
Operating revenue Cost of sales
Gross profit
margin
YoY change in
operating revenue
(%)
YoY change in
cost of sales (%)
YoY change in
gross profit
margin (%)
By operating division
By product category
Decoration 27172714036.71 22528609783.38 17.09% 25.47% 26.16% -0.45%
By operating segment
Reasons for the changed methods of measurement:
In order to better reflect the Company’s product categories the category of Internet-based home decoration has been put into the
decoration category based on the actual conditions of business revenue.
Business categories of the Company:
Unit: RMB
Business category Operating revenue Cost of sales Gross profit margin
Decoration 27939943817.80 23605931194.94 15.51%
Design 1501558913.30 928786610.87 38.15%
Indicate whether the Company conducts business through the Internet channel.√ Yes □ No
Gold Mantis ? Home conducts business through online channels such as Tmall JD as well as the Company’s own WeChat platform
website and app.Indicate whether the Company carried out overseas projects.√ Yes □ No
Three projects were carried out in Hong Kong by the Company in the Reporting Period with the contract amounts totaling
RMB25.11 million.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes √ No
(4) Execution Progress of Significant Signed Sales Contracts in the Reporting Period
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
Unit: RMB
Project amount
Cumulative output value
recognized
Amount of the uncompleted
portion
Uncompleted projects 63043790573.00 33503941943.00 29539848630.00
Indicate whether there was any significant uncompleted project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
Unit: RMB
Cumulative costs
incurred
Cumulative gross
profit recognized
Expected loss Settled amount
Amount of the
completed but
unsettled portion
Completed but
unsettled projects
21269996533.48 2723626061.33 21074283351.44 4619103145.61
Indicate whether there was any significant completed but unsettled project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
Operating
division
Item
2020 2019
Change (%)
Cost of sales
As a % of total
cost of sales
(%)
Cost of sales
As a % of total
cost of sales (%)
Construction
decoration
Direct materials 16223118950.89 66.91% 14969348250.06 64.36% 8.38%
Construction
decoration
Direct labor costs 7291485367.27 30.07% 7299922894.97 31.38% -0.12%
Construction
decoration
Expenses 732184275.95 3.02% 990934818.28 4.26% -26.11%
Breakdown of cost of sales of core businesses:
Unit: RMB
Cost breakdown
Business
category
2020 2019
Change (%)
Cost
As a % of total
cost of sales (%)
Cost
As a % of total
cost of sales (%)
Direct materials Decoration 16223118950.89 66.91% 14969348250.06 64.36% 8.38%
Design 0.00%
Subtotal 16223118950.89 66.91% 14969348250.06 64.36% 8.38%
Direct labor costs Decoration 6632060386.56 27.35% 6512456949.56 28.00% 1.84%
Design 659424980.71 2.72% 787465945.41 3.39% -16.26%
Subtotal 7291485367.27 30.07% 7299922894.97 31.38% -0.12%
Expenses Decoration 549397367.20 2.27% 729000404.55 3.13% -24.64%
Design 182786908.75 0.75% 261934413.73 1.13% -30.22%
Subtotal 732184275.95 3.02% 990934818.28 4.26% -26.11%
Subtotal 24246788594.11 100.00% 23260205963.31 100.00% 4.24%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
1. Disposal of subsidiaries
In the current period Home Decoration E-commerce a subsidiary of Gold Mantis Prefabricated Construction Technology
transferred or de-registered 51 “Gold Mantis Home” subsidiaries and Gold Mantis Curtain Wall a subsidiary of the Company
de-registered Suzhou Miaoyu Construction Materials Co. Ltd. These transferred or de-registered entities were therefore excluded
from the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period Gold Mantis International a subsidiary of the Company incorporated Jining Gold Mantis Construction
Engineering Co. Ltd. and Gold Mantis Landscape a subsidiary of the Company incorporated Hangzhou Gold Mantis Landscape
Co. Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 8769142135.42
Total sales to top five customers as a % of total sales of
the Reporting Period (%)
28.07%
Total sales to related parties among top five customers as
a % of total sales of the Reporting Period (%)
0.00%
Top five customers:
No. Customer
Sales revenue contributed for
the Reporting Period (RMB)
As a % of total sales revenue (%)
1 Customer A 6835504535.80 21.88%
2 Customer B 1108396916.19 3.55%
3 Customer C 344326369.83 1.10%
4 Customer D 262020032.31 0.84%
5 Customer E 218894281.29 0.70%
Total -- 8769142135.42 28.07%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 587287591.63
Total purchases from top five suppliers as a % of total
purchases of the Reporting Period (%)
2.13%
Total purchases from related parties among top five
suppliers as a % of total purchases of the Reporting
Period (%)
0.00%
Top five suppliers:
No. Supplier
Purchase in the Reporting
Period (RMB)
As a % of total purchases (%)
1 Supplier A 142664603.12 0.52%
2 Supplier B 140175325.28 0.51%
3 Supplier C 115740281.38 0.42%
4 Supplier D 99819589.00 0.36%
5 Supplier E 88887792.85 0.32%
Total -- 587287591.63 2.13%
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
2020 2019 Change (%) Reason for any significant change
Selling expense 375964501.30 650794185.74 -42.23%
Decreases in headcounts of the
Company and its subsidiaries
Administrative expense 604846088.47 1001785370.49 -39.62%
Decreases in headcounts of the
Company and its subsidiaries
Finance costs 131166068.90 134886779.35 -2.76%
R&D expense 955782334.18 879866123.50 8.63%
4. R&D Investments
√ Applicable □ Not applicable
The Company further strengthened R&D and innovation work improved the building of a scientific and technological R&D
system kept exploring new ideas and new models for R&D enhanced technology strengths and transformed them into core
competitiveness. The Company and its subsidiaries Meiruide Gold Mantis Curtain Wall Gold Mantis Landscape and Refined
Decoration & Technology have all gained the national "High-Tech Enterprise" recognition. It has also been recognized as a "Key
High and New-Tech Enterprise of National Torch Plan" a "Comprehensive Scientific Research Institute of China's Building
Decoration Industry" and a "BIM Research Center of China's Building Decoration Industry" and has become one of the first in the
industry to be approved as a "postdoctoral research station" and one of the first to be recognized as a national "prefabricated
construction industrial base". As at the end of the Reporting Period a total of more than 2000 patents had been obtained (including
371 invention patents).
Particulars about R&D investments:
2020 2019 Change (%)
Number of R&D personnel 3137 2879 8.96%
R&D personnel as a % of total
employees
20.77% 16.69% 4.08%
R&D investments (RMB) 955782334.18 879866123.50 8.63%
R&D investments as a % of
operating revenue
3.06% 2.85% 0.21%
Capitalized R&D investments
(RMB)
0.00 0.00 0.00%
Capitalized R&D investments
as a % of total R&D
investments
0.00% 0.00% 0.00%
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change (%)
Subtotal of cash generated from
operating activities
28880990351.48 28661170405.68 0.77%
Subtotal of cash used in operating
activities
27103875109.32 26905950422.97 0.74%
Net cash generated from/used in
operating activities
1777115242.16 1755219982.71 1.25%
Subtotal of cash generated from
investing activities
10856910482.46 16113138283.09 -32.62%
Subtotal of cash used in investing
activities
11430608541.98 14744610311.98 -22.48%
Net cash generated from/used in
investing activities
-573698059.52 1368527971.11 -141.92%
Subtotal of cash generated from
financing activities
1173776082.77 1513451675.11 -22.44%
Subtotal of cash used in financing
activities
1970884916.45 1662254810.52 18.57%
Net cash generated from/used in
financing activities
-797108833.68 -148803135.41 -435.68%
Net increase in cash and cash
equivalents
303149343.56 2982286978.82 -89.84%
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
It was primarily driven by operating investing and financing activities in the current period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the net profit of the Reporting
Period:
□ Applicable √ Not applicable
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount
As a % of gross
profit
Primary source/reason Recurrent or not
Return on investment 37648383.31 1.39%
Returns on wealth management
product investments
Recurrent
Gain/loss on changes in
fair value
-723913.69 -0.03%
Asset impairment loss -386282077.09 -14.25%
Allowances for doubtful
accounts
Recurrent
Non-operating income 285660.49 0.01% Not recurrent
Non-operating expense 4298740.33 0.16% Not recurrent
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated the
beginning amounts of relevant financial statement line items in the year.
Applicable.
Unit: RMB
31 December 2020 1 January 2020
Change in
percentage (%)
Reason for any
significant
change
Amount
As a % of total
assets
Amount
As a % of total
assets
Monetary assets 6372631845.72 14.16% 6077758993.30 15.32% -1.16%
Accounts
receivable
13517789956.57 30.04% 12019319778.79 30.30% -0.26%
Inventories 53841882.04 0.12% 101344129.28 0.26% -0.14%
Investment
property
135295908.94 0.30% 78250561.70 0.20% 0.10%
Long-term equity
investments
225124.06 0.00% 22838423.66 0.06% -0.06%
Fixed assets 892169838.74 1.98% 910175452.03 2.29% -0.31%
Construction in
progress
41215785.57 0.09% 71905579.25 0.18% -0.09%
Short-term
borrowings
714363172.85 1.59% 875691128.75 2.21% -0.62%
Long-term
borrowings
836918353.34 1.86% 838561722.30 2.11% -0.25%
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Item
Opening
amount
Gain/loss on
fair-value
changes in the
current period
Cumulative
fair-value
changes
recognized in
equity
Impairment
allowance for
the current
period
Purchased in
the current
period
Sold in the
current period
Other
changes
Closing amount
Financial
assets
1.
Held-for-tradi
ng financial
assets
(exclusive of
derivative
financial
assets)
1694650654
.74
-723913.69
1120354071
1.98
1072538071
1.98
2172086741.
05
Other
non-current
financial
assets
444022000.0
0
68000000.00 512022000.00
Total of the
above
2138672654
.74
-723913.69
1127154071
1.98
1072538071
1.98
2684108741.
05
Financial
liabilities
0.00 0.00 0.00 0.00 0.00 0.00
Particulars about other changes:
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.□ Yes √ No
3. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB
Item Closing carrying amount Reason for restriction
Monetary assets 16564171.89 Frozen by court of law
Notes receivable 1300000.00 Put in pledge for notes issuing
Notes receivable 1901286639.74
Un-derecognized endorsed or
discounted commercial notes
Accounts receivable 103990224.42
Un-derecognized factored accounts
receivable
Receivables financing 82472805.60 Put in pledge for notes issuing
Total 2105613841.65
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Reporting
Period (RMB)
Total investment amount in last year
(RMB)
Change (%)
196000000.00 245621341.56 -20.20%
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.VI Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Name
Relatio
nship
with the
Compa
ny
Principal
activities
Register
ed
capital
Total assets Net assets
Operating
revenue
Operating profit Net profit
Meiruide
Subsidi
ary
Constructi
on
decoration
RMB13
7
million
5910074493.10 1457720687.48 4649890587.53 261010405.32 236084987.30
Gold Mantis
Curtain Wall
Subsidi
ary
Manufactu
ring of
decoration
materials
RMB30
0
million
2550888967.47 923741660.24 1640145633.00 20202390.91 21565367.61
Gold Mantis
Landscape
Subsidi
ary
Landscapi
ng
RMB10
0
million
2287601703.71 630017100.91 1061264310.72 130311674.76 114277407.25
Singapore Subsidi Constructi USD1 1248738900.23 664199378.87 803827849.60 99507430.49 82850227.49
Gold Mantis ary on
decoration
Gold Mantis
(International
)
Subsidi
ary
Constructi
on
decoration
HKD10
million
405936293.10 299872919.69 198471035.76 61498865.91 49992522.99
Gold Mantis
Prefabricated
Construction
Technology
Subsidi
ary
Decoratio
n and
e-commer
ce
RMB27
0
million
2230155296.20 256999489.05 2808722617.48 28089987.06 -13401119.37
Subsidiaries acquired or disposed of in the Reporting Period:
√ Applicable □ Not applicable
Name Way of acquisition or disposal
Effects on the Company’s overall
operations and performance
51 “Gold Mantis Home” subsidiaries Transferred or de-registered No significant effects
Suzhou Miaoyu Construction Materials
Co. Ltd.
De-registered No significant effects
Jining Gold Mantis Construction
Engineering Co. Ltd.
Incorporated No significant effects
Hangzhou Gold Mantis Landscape Co.Ltd.Incorporated No significant effects
VIII Structured Entities Controlled by the Company
□ Applicable √ Not applicable
IX Prospects
1. Competitive Landscape and Development Trend of the Industry
In recent years the market size of the construction decoration industry has grown steadily policies and standards have promoted
market development and market integration has become more frequent; new business models such as EPC have expanded rapidly;
prefabrication intelligentization BIM VR and other technological innovation have continued to deepen. In the future with the wave
of industrial upgrading green interior decoration scientific and technological decoration and informatization will become important
driving forces for the next growth-cycle round of the construction decoration industry.In recent years the decoration industry has presented a variety of new trends and new changes which are prominently
manifested in business types and technological innovation.
Business:
(1) The engineering procurement construction (EPC) of decoration projects has become the mainstream development
trend
Taking into account the development of the building industry at home and abroad we will find that the EPC of decoration
projects is an inevitable trend of industry development. For a long time decoration projects in China have been carried out by general
design contractors and general construction contractors separately resulting in many problems such as the different project progress
between the two and the poor matching of drawings. However with the in-depth promotion of the decoration EPC policy great
improvement will be brought. For one thing decoration EPC can reduce management difficulty shorten project duration and cut
building costs. For another it can help improve construction efficiency and quality thus creating more economic value for a ll parties.Later under the continuous guidance of national policies and propelled by market forces decoration EPC will further become the
mainstream trend of industry development.
(2) Opportunities arise from the construction of key regions across the country
In recent years China has been stepping up its efforts to promote regional development. It has constantly optimized regional
policies and spatial layout leveraged the comparative advantages of different regions and made new progress in national
high-quality development. Successively China has launched the construction plans for the Guangdong-Hong Kong-Macao Greater
Bay Area the integrated development of the Yangtze River Delta the coordinated development of the Beijing-Tianjin-Hebei region
and the Xiong'an New Area to create world-class innovation platforms and growth poles. In the future a number of benchmark
projects up to international first-class standards will become important development opportunities for the construction decoration
industry.Technological innovation:
(1) Prefabricated decoration has become an important trend
At present the building modernization in major developed countries is quite mature. Representative countries such as the United
States Japan and Singapore have a very high penetration rate in the field of prefabrication. Although China's penetration rate has
increased in recent years there is still a gap indicating that the prefabrication penetration of China has huge room for gr owth.Prefabricated decoration adopts the new forms of standardized design industrialized production and prefabricated construction
which has such advantages as good construction quality high installation accuracy and environmental friendliness. It can solve many
difficulties faced by traditional decoration construction and greatly reduce dependence on manual work. Therefore it has bright
prospects for future growth.
(2) BIM has become an industry trend
BIM has five major characteristics namely visualization coordination simulation optimization and plotting. This enables
projects with BIM applications as a carrier to have improved building quality shortened project duration and reduced construction
costs. As the construction decoration industry imposes higher visualization requirements for design cost estimation construction
maintenance and other processes as well as for all types of information BIM has become a technological symbol of the construction
industry. It has been more and more widely used in many large and complex construction projects. Now it is a technologica l direction
of the future transformation of China's construction decoration industry.
2. Development Strategy of the Company
Opportunities and challenges coexist in the current industry. On the one hand there are still many uncertainties in economic
resurgence. The road to industry demand recovery is tortuous. On the other hand under the promotion by national policies and the
improvement of standardization many new business forms and new technologies have emerged in the industry. The development of
EPC and prefabrication is in full swing. Therefore in order to maintain its leadership in the fierce market competition the Company
must continue to seek vitality from technological innovation and impetus from industrial upgrading. In 2021 the Company will
advance its different operations in accordance with the established strategy focusing on the EPC prefabrication local and
redecoration markets to create new core competitiveness for Gold Mantis.
(1) EPC: The Company will leverage its full-industry-chain supporting advantages such as design construction landscaping and
curtain wall engineering as well as comprehensive project management strengths in addition to integrating industry resources .Through the integration of design and construction the Company will also increase the proportion of large-scale high-quality
projects create barriers to competitors and further improve its market share and core profit margin.
(2) Prefabricated decoration: The Company will integrate internal and external resources adhering to both independent
originality and joint R&D. By ensuring close cooperation and resource sharing with domestic leading enterprises on project
undertaking technology R&D and resource integration the Company will promote the rapid promotion and implementation of
prefabricated decoration projects in order to form the first-mover advantage and the scale advantage.
(3) Local markets: The Company will create local landmark projects by strengthening cooperation with local governments build
trust and stickiness with local governments and large enterprises and promote mutual benefit and win-win results. Moreover the
Company will continue to rapidly expand its business from point to plane and from plane to solid in order to achieve the strategic
goal of developing local markets in depth and further promote the Company to the whole country.
(4) Redecoration: The Company's redecoration business will focus on large-scale cultural tourism venues and hotels. The
Company will fully mobilize a large number of domestic high-quality customer resources and use its advantages in EPC and
prefabrication to effectively seize market opportunities.
3. Future Planning
(1) Platform construction will be accelerated to facilitate stable and continuous high-quality development.
The Company will continuously improve and enrich the management radius of the large marketing platform the professional
design platform and the large-scale engineering management platform raise its refined management level in marketing design
project management audit and payment collection and other business dimensions and promote its firm move towards high-quality
development.
(2) The joint operation system will be completed and the Company's long-term growth potential will be gradually unlocked.
The Company will build a business operations system where marketing bidding design construction functions and other
departments support and cooperate with each other so that different line departments will perform their respective duties and better
focus on such aspects as construction quality schedule customer satisfaction and payment collection thereby systematically and
comprehensively enabling the Company's reform measures to truly play a role and achieving the Company's established goals.
X Communications with the Investment Community such as Researches Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Date Place
Way of
commu
nication
Type of
the
communic
ation party
Communication
party
Main discussions
and materials
provided by the
Company
Index to the relevant information
27 April 2020
Company
Conference
Room
By
phone
Institution
Guosheng Asset
Management
CICC Fullgoal
Fund etc.
Introduced the
Company’s
operations and
development
strategy
Log Sheet of Investor Relations
Activities on 27 April 2020 on
http://irm.cninfo.com.cn/
8 May 2020
Company
Conference
Room
Other Other All investors
Introduced the
Company’s
operations and
development
strategy
Log Sheet of Investor Relations
Activities on 8 May 2020 on
http://irm.cninfo.com.cn/
1 September 2020
Company
Conference
Room
By
phone
Institution
Guosheng Asset
Management
Huatai Securities
Industrial
Securities etc.Introduced the
Company’s
operations and
development
strategy
Log Sheet of Investor Relations
Activities on 1 September 2020 on
http://irm.cninfo.com.cn/
2 November 2020
Company
Conference
Room
By
phone
Institution
Guosheng Asset
Management
Huatai Securities
Industrial
Securities etc.Introduced the
Company’s
operations and
development
strategy
Log Sheet of Investor Relations
Activities on 2 November 2020 on
http://irm.cninfo.com.cn/
Part V Significant Events
I Profit Distributions to Ordinary Shareholders in the Form of Cash and/or Shares
The profit distribution policy for ordinary shareholders especially the formulation implementation and amendments to the ca sh
dividend policy in the Reporting Period:
√ Applicable □ Not applicable
The Company has been implementing continual and consistent profit distribution policies in the current stage. With an aim to
concurrently guarantee the overall interests of the entire shareholders and the Company's sustainable development the Compan y
gave consideration to factors such as its operation status profit scale and financial needs for project investment and has formu lated
sustainable consistent and scientific distribution policies. Equity distribution was carried out through cash dividends as well as
bonus issues from capital reserves and profit to offer reasonable investment returns to investors and provide them with opportunities
to share the Company's achievement in economic growth. Such practices were in compliance with relevant laws regu lations and
normative documents issued by the China Securities Regulatory Commission and the Shenzhen Stock Exchange.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
resolution of general meeting
Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
played their due role
Yes
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully
protected
Yes
In case of adjusting or altering the cash dividend policy the
conditions and procedures involved are in compliance with
applicable regulations and transparent
Not applicable
The profit distribution plans for ordinary shareholders either in the form of cash or shares in the past three years (including the
Reporting Period) are summarized as follows:
The final dividend plan for 2020: Based on the total share capital of 2683358689 shares a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders with the total amount to be distributed being
RMB536671737.80.
The final dividend plan for 2019: Based on the total share capital of 2684408689 shares a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders with the total amount to be distributed being
RMB536881737.80.
The final dividend plan for 2018: Based on the total share capital of 2676408689 shares a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders with the total amount to be distributed being
RMB535281737.80.
Cash dividends for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Year
Cash dividends
(tax inclusive)
(A)
Net profit
attributable to
ordinary
shareholders of
the listed company
in consolidated
statements for the
year (B)
A as a % of B (%)
Cash
dividends in
other forms
(like share
repurchase)
(C)
C as a % of B
(%)
Total cash
dividends
(including those
in other forms)
(A+C)
A+C as a % of
B (%)
2020 536671737.80 2373915319.52 22.61% 0.00 0.00% 536671737.80 22.61%
2019 536881737.80 2349395605.96 22.85% 0.00 0.00% 536881737.80 22.85%
2018 535281737.80 2123411594.37 25.21% 0.00 0.00% 535281737.80 25.21%
Indicate whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the ordinary
shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 2
Share base (share) 2683358689
Cash dividends (RMB) (tax inclusive) 536671737.80
Cash dividends in other forms (such as share
repurchase) (RMB)
0.00
Total cash dividends (including those in other
forms) (RMB)
536671737.80
Distributable profit (RMB) 9716609593.34
Total cash dividends (including those in other
forms) as a % of the total profit to be distributed
100%
Cash dividend policy
Other
Cash and/or stock dividend plan in detail
Specific conditions and proportion of cash dividends as stipulated in the Articles of Association: Except for special circumstances
the Company shall distribute dividends in cash if it is profitable in the year and the accumulative retained earnings are positive. The
annual profit distributed in cash shall not be less than 10% of the profit available for distribution to shareholders achieve d in the
year and the accumulated profit distributed in cash in the last three years shall not be less than 30% of the average annual
distributable profit achieved in the last three years. If the Company repurchases shares by means of offer or call auction in
consideration of cash it is deemed as cash dividends and will be included in the relevant percentage of cash dividends for
calculation. The special circumstances mentioned in the foregoing paragraph include: 1. War natural disasters and other forc e
majeure have a significant adverse impact on the Company's production and operations; 2. Due to an international and domestic
macroeconomic impact the industry's earnings decline significantly resulting in a decline of more than 50% in the Company's net
profit from the same period of the previous year; 3. Due to the national macroeconomic situations policy control and other reasons
the Company's net operating cash flow falls by more than 50% from the same period of the previous year or the Company's net
operating cash flow is negative; 4. As the Company intends to acquire assets make foreign investments purchase significant fixed
assets or tangible assets in the next twelve months with its own funds the accumulative expenditure reaches or exceeds 10% of its
audited total assets of the latest period.The final dividend plan for 2020: Based on the total share capital of 2683358689 shares [note] a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders with the total amount to be distributed being
RMB536671737.8. And there will be no bonus issue from either profit or capital reserves. Note: In case of any changes in the total
share capital or shares in the share repurchase account prior to the date of record for the profit distribution t he profit distribution
will be carried out under the principle of an unchanged cash dividend payout ratio.The final dividend plan is in compliance with the Company’s Articles of Association and is subject to final approval by the General
Meeting before implementation.III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller Shareholders Related Parties and Acquirers as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Commitment Promisor
Type of
commitment
Details of
commitment
Date of commitment
making
Term of
commitme
nt
Fulfill
ment
Commitments made in share
reforms
Commitments made in
acquisition reports or interests
change reports
Commitments made in asset
restructurings
Commitments made in IPO or
refinancing
Suzhou Gold Mantis
Enterprise (Group)
Co. Ltd. Golden
Feather
Corporation and
Zhu Xingliang
Commitments
related to
horizontal
competition
related-party
transactions and
capital
occupation
Commitment
about avoiding
horizontal
competition
25 October 2006 Long-term
Strictly
abiding
by the
commit
ment
Equity incentive commitments
Other commitments made to
non-controlling shareholders
Suzhou Gold Mantis
Enterprise (Group)
Co. Ltd. Golden
Feather
Corporation and
Zhu Xingliang
Commitment
related to not
reducing
shareholdings in
the Company
during the
statutory periods
Commitment
about not
reducing
shareholdings in
the Company
during the
statutory periods
upon
shareholding
increases
20 November 2019
Six
months
Fulfille
d
Fulfilled on time or not Yes
Specific reasons for failing to
fulfill commitments on time and
plans for the next step
Not applicable
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period explain why the forecast has been reached for the Reporting Period.
□ Applicable √ Not applicable
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Explanations Given by the Board of Directors the Supervisory Committee and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies Estimates and Methods
√ Applicable □ Not applicable
On 23 April 2020 the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th
Supervisory Committee at which the Proposal on Changing Accounting Policies According to the Regulations of the Ministry of
Finance was reviewed and approved.
1. According to the Accounting Standard No. 14 for Business Enterprises- Revenue revised and issued by the Ministry of
Finance the main changes were as follows:
In the revised standards the two existing standards on revenue and construction contracts were incorporated int o a unified
revenue recognition model; the transfer of risk premium was replaced with the transfer of control as the judgment criterion f or the
time of revenue recognition; clearer guidelines were provided on the accounting processing of contracts containing multiple
transaction arrangements; and clear provisions were provided on the revenue recognition and measurement of certain specific
transactions (or events).
2. According to the Accounting Standard No. 7 for Business Enterprises- Exchange of Non-monetary Assets (Revision 2019)
issued by the Ministry of Finance the main changes were as follows:
In the revised standards the scope of application of the standards on exchange of non-monetary assets was refined; the
recognition/derecognition time for the exchange of received assets and surrendered assets was clarified; the measurement principles
for the exchange of non-monetary assets measured at fair value when multiple assets were received or surrendered at the same time
were revised; and the disclosure of whether the exchange of non-monetary assets had commercial substance and the reasons was
required.
3. According to the Accounting Standard No. 12 for Business Enterprises- Debt Restructuring (Revision 2019) issued by the
Ministry of Finance the main changes are as follows:
The definition of "debt restructuring" was revised to cancel a judgment on whether the debtor is in financial difficulty or
whether the creditor has made concessions. Therefore the scope of application was expanded. It was clarified that restructured debts
and liabilities were no longer distinguished from other financial instruments and that the recognition and measurement princ iples of
restructured debts and liabilities were consistent with those of financial instruments.VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
1. Disposal of subsidiaries
In the current period Home Decoration E-commerce a subsidiary of Gold Mantis Prefabricated Construction Technology
transferred or de-registered 51 “Gold Mantis Home” subsidiaries and Gold Mantis Curtain Wall a subsidiary of the Company
de-registered Suzhou Miaoyu Construction Materials Co. Ltd. These transferred or de-registered entities were therefore excluded
from the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period Gold Mantis International a subsidiary of the Company incorporated Jining Gold Mantis Construction
Engineering Co. Ltd. and Gold Mantis Landscape a subsidiary of the Company incorporated Hangzhou Gold Mantis Landscape
Co. Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.
IX Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor RSM China
The Company’s payment to the domestic independent auditor
(RMB’0000)
235
How many consecutive years the domestic independent auditor
has provided audit service for the Company
18
Names of the certified public accountants from the domestic
independent auditor writing signatures on the auditor’s report
Song Wen Hong Zhiguo and Long Bing
How many consecutive years the certified public accountants
have provided audit service for the Company
Four years five years and three years respectively
Indicate whether the independent auditor was changed for the Reporting Period.□ Yes √ No
Independent auditor appointed for the audit of internal control as well as financial advisor or sponsor appointed:
□ Applicable √ Not applicable
X Possibility of Delisting after the Disclosure of this Report
□ Applicable √ Not applicable
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.XII Significant Legal Matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIV Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
√ Applicable □ Not applicable
1. On 29 October 2018 the Company convened the 12th Extraordinary Meeting of the 5th Board of Directors and the 4th
Extraordinary Meeting of the 5th Supervisory Committee at which the Proposal on the Company's 2018 Restricted Share Incentive
Plan (Draft) and Its Summary and other proposals were reviewed and approved. Independent directors and the Supervisory
Committee of the Company put forward opinions on whether this incentive plan would be conducive to the Company's sustainable
development and whether it might significantly damage the interests of the Company and its entire shareholders. Details were
published on the Cninfo (http://www.cninfo.com.cn) on 30 October 2018 for the inquiry of investors.
2. From 30 October 2018 to 12 November 2018 the Company published the list of awardees for this incent ive plan on the
Cninfo and its official website. During this period the Supervisory Committee of the Company did not receive any objection. As the
publicity period expired the Supervisory Committee convened the 5th Extraordinary Meeting of the 5th Superv isory Committee on
13 November 2018 to review the list of awardees in the first incentive grant and provide information on the publicity status.
3. On 20 November 2018 the Company convened the 1st Extraordinary General Meeting of 2018 at which the Proposal on the
Company's 2018 Restricted Share Incentive Plan (Draft) and Its Summary and other proposals were reviewed and approved. Besides
self-inspection of stock trading of incentive plan insiders was conducted. There was no finding where the insiders made use of inside
information to trade the Company's stocks. Details were published on the Cninfo (http://www.cninfo.com.cn) on 21 November 201 8
for the inquiry of investors.
4. On 17 December 2018 the Company convened the 13th Extraordinary Meeting of the 5th Board of Directors and the 6th
Extraordinary Meeting of the 5th Supervisory Committee at which the Proposal on the First Grant of Restricted Stocks to Awardees
was reviewed and approved. It was agreed that the Company granted 33.10 million restricted shares to 32 qualified awardees on 17
December 2018. Independent directors and the Supervisory Committee of the Company clearly consented to this matter. The
Supervisory Committee verified the list of awardees for this grant of restricted shares.
5. On 11 January 2019 the Company completed the registration of the first grant of restricted shares for the 2018 restricted
share incentive plan granted 33.10 million restricted shares to 32 qualified awardees and disclosed the Announcement on the
Successful First Grant of the 2018 Restricted Stock Incentive Plan. The listing date of restricted shares in the first grant was 15
January 2019.
6. On 15 November 2019 the Company convened the 1st Extraordinary Meeting of the 6th Board of Directors and the 1st
Extraordinary Meeting of the 6th Supervisory Committee at which the Proposal on Granting Reserved Restricted Stocks to Awardees
was reviewed and approved. It was agreed that the Company granted 8 million reserved restricted shares to 14 awardees on 15
November 2019 the date determined at the meetings for the grant of reserved restricted shares. Independent directors and the
Supervisory Committee of the Company clearly consented to this matter. The Supervisory Committee verified the list of awardees for
this grant of restricted shares.
7. On 22 January 2020 the Company completed the registration of the grant of reserved restricted shares for the 2018 restric ted
share incentive plan granted 8 million restricted shares to 14 awardees and disclosed the Announcement on the Successful Grant of
the Reserved Portion for the 2018 Restricted Share Incentive Plan. The listing date of these reserved restricted shares was 23 January
2020.
8. On 23 April 2020 the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th
Supervisory Committee at which the Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting
Restriction Period for the First Grant Portion of the 2018 Restricted Share Incentive Plan was reviewed and approved. It was deemed
that the first restriction period of restricted shares in the first grant of this incentive plan had expired and that the conditions for
lifting restrictions such as the business performance indicator had been satisfied to meet the conditions for lifting restrictions in the
first listing restriction period as mentioned in the Company's 2018 Restricted Share Incentive Plan. Therefore it was agreed that the
Company processed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan after
the 2019 Annual Report of the Company was reviewed and approved at the 2019 Annual General Meeting. At the same time the
Proposal on Repurchase and Cancellation of Some Restricted Stocks was reviewed and approved. Considering that Yang Peng and
Xie Jinjun the original awardees had left the Company for personal reasons they no longer satisfied the incentive conditions
according to relevant provisions in the Company's 2018 Restricted Share Incentive Plan. The Board of Directors of the Company
agreed that the Company repurchased and canceled 1.05 million restricted shares which were granted to the above-mentioned persons
with trading restrictions to be lifted. The repurchase price was RMB3.99/share. Independent directors and the Supervisory
Committee of the Company clearly consented to this matter.
9. On 15 May 2020 the Company convened the 2019 Annual General Meeting at which the 2019 Annual Report of the
Company as well as Its Abstract the Proposal on Repurchase and Cancellation of Some Restricted Stocks and other proposals were
reviewed and approved. Details were published on the Cninfo (http://www.cninfo.com.cn) on 16 May 2020 for the inquiry of
investors.
10. On April June 2020 the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed the
Prompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Period
for the First Grant Portion of the 2018 Restricted Share Incentive P lan (2020-032). The date of listing and trading of these stocks
with restriction conditions lifted was 9 June 2020.
11. On 13 July 2020 upon the review and confirmation of Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited the Company completed the repurchase and cancellation of some restricted shares after which the total s hare
capital of the Company changed to 2683358689 shares. The Announcement on Successful Repurchase and Cancellation of Some
Restricted Stocks (2020-033) was disclosed.
12. On 15 January 2021 the Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting Restriction
Period for the First Grant Portion of the 2018 Restricted Share Incentive Plan was deliberated and approved at the 2nd Extraordinary
Meeting of the 6th Board of Directors and the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that the
lifting restriction conditions for the restricted shares reserved under the Company's 2018 restricted share incentive plan in the first
lifting restriction period were achieved. It was therefore agreed that the Company would handle matters related to lifting restrictions
for eligible awardees in accordance with the relevant provisions of the incentive plan after the expiration of the first restriction period
of reserved restricted shares. Independent directors and the Supervisory Committee of the Company clearly consented to this matter.
13. On 25 January 2021 the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed the
Prompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Period
for the Reserved Portion of the 2018 Restricted Share Incentive P lan (2021-007). The date of listing and trading of these stocks with
restriction conditions lifted was 27 January 2021.XVI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Related
party
Relation
ship
Type of
transacti
Contents
of
Pricing
principl
Transact
ion
Total
value
As a %
of total
Approv
ed
Over
the
Method
of
Obtaina
ble
Disclos
ure date
Index
to
with the
Compan
y
on transacti
on
e price (RMB’0
000)
value of
all
transacti
ons of
the
same
nature
transacti
on line
(RMB’0
000)
approve
d line or
not
settleme
nt
market
price for
transacti
ons of
the
same
nature
disclose
d
informa
tion
Suzhou
Gold
Mantis
3D
Software
Co. Ltd.
The
parent
compan
y’s
subsidia
ry
Purchasi
ng
goods
or
receivin
g
services
from the
related
party
Softwar
e and
technica
l
services
Market
price
138.14 138.14 138.14 Not In cash 138.14
25 April
2020
17
Suzhou
Huizhu
Informati
on
Technolo
gy Co.
Ltd.The
parent
compan
y’s
sub-sub
sidiary
Purchasi
ng
goods
or
receivin
g
services
from the
related
party
Technica
l
services
Market
price
27.48 27.48 27.48 Not In cash 27.48
25 April
2020
17
Suzhou
Gold
Mantis
Investme
nt Co.
Ltd.The
parent
compan
y’s
subsidia
ry
Purchasi
ng
goods
or
receivin
g
services
from the
related
party
Consulti
ng
services
Market
price
28.82 28.82 28.82 Not In cash 28.82
Delos
(Suzhou)
Well
Technolo
gy Ltd.Minorit
y-owne
d by the
Compan
y
Purchasi
ng
goods
or
receivin
g
Material
s
Market
price
162.14 162.14 162.14 Not In cash 162.14
25 April
2020
17
47
services
from the
related
party
Suzhou
BLM
Technolo
gy Co.
Ltd.The
parent
compan
y’s
sub-sub
sidiary
Purchasi
ng
goods
or
receivin
g
services
from the
related
party
Equipm
ent and
material
s
Market
price
92.94 92.94 92.94 Not In cash 92.94
Suzhou
LJT
Intelligent
Technolo
gy Co.
Ltd.The
parent
compan
y’s
subsidia
ry
Purchasi
ng
goods
or
receivin
g
services
from the
related
party
Design
charges
and
material
s
Market
price
754.80 754.8 754.8 Not In cash 754.80
25 April
2020
17
Suzhou
Jinhu
Property
Develop
ment Co.Ltd.The
parent
compan
y’s
subsidia
ry
Selling
goods
or
renderin
g
services
to the
related
party
Decorati
on and
curtain
wall
engineer
ing and
design
Market
price
5296.9
6
5296.9
6
5296.9
6
Not In cash
5296.9
6
23 May
2018
15、
25
Suzhou
Jinbai
Hotel
Managem
ent Co.Ltd.The
parent
compan
y’s
sub-sub
sidiary
Selling
goods
or
renderin
g
services
to the
related
party
Decorati
on
engineer
ing
Market
price
1544.0
7
1544.0
7
1544.0
7
Not In cash
1544.0
7
23 May
2018
15、
25
Zhejiang Formerl Selling Decorati Market 112.55 112.55 112.55 Not In cash 112.55 25 April 2020-0
48
Tianyu
Commerc
ial
Operation
Managem
ent Co.Ltd.y
minority
-owned
by the
Compan
y
goods
or
renderin
g
services
to the
related
party
on
engineer
ing and
design
price 2020 17
Suzhou
LJT
Intelligent
Technolo
gy Co.
Ltd.The
parent
compan
y’s
subsidia
ry
Selling
goods
or
renderin
g
services
to the
related
party
Decorati
on
engineer
ing and
equipme
nt
Market
price
-48.21 -48.21 -48.21 Not In cash -48.21
25 April
2020
17
Delos
(Suzhou)
Well
Technolo
gy Ltd.Minorit
y-owne
d by the
Compan
y
Selling
goods
or
renderin
g
services
to the
related
party
Decorati
on
engineer
ing
Market
price
11.01 11.01 11.01 Not In cash 11.01
25 April
2020
17
Suzhou
Gold
Mantis
Culture
Develop
ment Co.Ltd.Minorit
y-owne
d by the
parent
compan
y
Selling
goods
or
renderin
g
services
to the
related
party
Landsca
ping
and
property
services
Market
price
44.65 44.65 44.65 Not In cash 44.65
Total -- --
8165.3
5
--
8165.3
5
-- -- -- -- --
Large-amount sales return in detail N/A
Give the actual situation in the
Reporting Period (if any) where an
estimate had been made for the total
value of continuing related-party
transactions by type to occur in the
The total value of continuing transactions between the Company and related parties LJT
Delos (Suzhou) Zhejiang Tianyu 3D Software and Huizhu Technology stood at
RMB11.5791 million in the Reporting Period.
49
Reporting Period
Reason for any significant difference
between the transaction price and the
market reference price (if applicable)
N/A
Notes:
1. The Company convened the 2017 Annual General Meeting on 22 May 2018 at which the Proposal on the Proposed Signing
of Decoration Engineering Contracts and Related-Party Transactions was reviewed and approved. It was agreed that the Company
and its subsidiaries within the scope of consolidated statements would sign several contracts of architectural decoration des ign and
construction with Suzhou Jinhu Real Estate Development Co. Ltd. according to the needs of business development and provide
design and construction services such as hotel decoration apartment decoration curtain wall and landscape design and constr uction
for Park Hyatt Suzhou. The total amount shall not exceed RMB540000000. For details please refer to the Company's
announcements numbered 2018-015 and 2018-025. According to the authorization of the 2017 Annual General Meeting and the
contracts signed between the Company and Suzhou Jinhu Real Estate Development Co. Ltd. in 2020 the Company (including its
subsidiaries) carried out related-party transactions of decoration services with Suzhou Jinhu Real Estate Development Co. Ltd.(including its subsidiaries) for the Park Hyatt Suzhou Project with an amount of RMB68410300.
2. In 2020 the Company carried out related-party transactions with Suzhou Gold Mantis Investment Co. Ltd. Suzhou Bro&M
Technology Co. Ltd. and Suzhou Gold Mantis Culture Development Co. Ltd with a total amount of RMB1664100 which fell
within the permission scope of the General Manager. These transactions had been reviewed and approved by the General Manager in
accordance with the Company's Related-Party Transaction Policy.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.50
5. Other Significant Related-Party Transactions
√ Applicable □ Not applicable
(1) Leases with Related Parties
① In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Enterprise
(Group) Co. Ltd. Gold Mantis Group leased an office building area of 272.12 square meters from the Company with an annual
rental of RMB189000. The Company collected actual rental of RMB189000 in 2020 and RMB189000 in 2019.② In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Investment Co.Ltd. Suzhou Gold Mantis Investment Co. Ltd. leased an office building area of 100 square meters from the Company with an
annual rental of RMB42000. The Company collected actual rental of RMB42000 in 2020 and RMB42000 in 2019.③ In accordance with the Property Lease Agreement signed between the Company and Suzhou Bro&M Technology Co. Ltd.Suzhou Bro&M Technology Co. Ltd. leased an office building area of 25 square meters from the Company with an annual rental of
RMB10500. The Company collected actual rental of RMB10500 in 2020 and RMB10500 in 2019.
④ In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinhu Real Estate Development
Co. Ltd. Suzhou Jinhu Real Estate Development Co. Ltd. leased an office building area of 100 square meters from the Company
with an annual rental of RMB42000. The Company collected actual rental of RMB42000 in 2020 and RMB42000 in 2019.⑤ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Cloud Information
Technology Co. Ltd. Suzhou Gold Cloud Information Technology Co. Ltd. leased an office building area of 25 square meters from
the Company with an annual rental of RMB10500. The Company collected actual rental of RMB10500 in 2020 and RMB10500 in
2019.
⑥ In accordance with the Property Lease Agreement signed between the Company and Jiangsu Dongyi Software Technology
Co. Ltd. Jiangsu Dongyi Software Technology Co. Ltd. leased an office building area of 25 square meters from the Company with
an annual rental of RMB10500. The Company collected actual rental of RMB10500 in 2020 and RMB10500 in 2019.⑦ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis 3D Software Co.Ltd. Suzhou Gold Mantis 3D Software Co. Ltd. leased an office building area of 200 square meters from the Company with an
annual rental of RMB84000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB84000
in 2020 and RMB84000 in 2019.
⑧ In accordance with the Property Lease Agreement signed between the Company and Suzhou Huizhu Information
Technology Co. Ltd. Suzhou Huizhu Information Technology Co. Ltd. leased an office building area of 200 square meters from the
Company with an annual rental of RMB84000. The lease agreement was signed in January 2017. The Company collected actual
rental of RMB84000 in 2020 and RMB84000 in 2019.51
⑨ In accordance with the Property Lease Agreement signed between the Company and Agile Intelligent Technology Co. Ltd.
Agile Intelligent Technology Co. Ltd. leased an office building area of 5 square meters and an office building area of 2557.39
square meters from the Company with an annual rental of RMB4500 and RMB1074100 respectively. The Company collected
actual annual rental of RMB4500 and RMB1074100 in 2020 and actual annual rental of RMB4500 and RMB1074100 in 2019.⑩ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Yihe Technology
Co. Ltd. Suzhou Gold Mantis Yihe Technology Co. Ltd. leased an office building area of 500 square meters from the Company
with an annual rental of RMB210000. The Company collected actual rental of RMB210000 in 2020 and RMB210000 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinnuo Commercial Factoring
Co. Ltd. Suzhou Jinnuo Commercial Factoring Co. Ltd. leased an office building area of 30 square meters from the Company with
an annual rental of RMB12600. The Company collected actual rental of RMB12600 in 2020 and RMB12600 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Charity
Foundation Suzhou Gold Mantis Charity Foundation leased an office building area of 25 square meters from the Company with an
annual rental of RMB10500. The lease agreement was signed in January 2017. The Company collected actual rental of RMB10500
in 2020 and RMB10500 in 2019.
? In accordance with the Property Lease Agreement signed between the subsidiary Meiruide and Suzhou Nuojin Investment
Co. Ltd. Suzhou Nuojin Investment Co. Ltd. leased an office building area of 50 square meters from Meiruide with an annua l
rental of RMB21000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB21000 in 2020
and RMB21000 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Gain Investment Co.Ltd. Suzhou Gold Gain Investment Co. Ltd. leased a factory building area of 50 square meters from the Company with an annual
rental of RMB3800. The Company collected actual rental of RMB3800 in 2020 and RMB3800 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinbo Hotel Management Co.Ltd. Suzhou Jinbo Hotel Management Co. Ltd. leased an office building area of 20 square meters from the Company with an an nual
rental of RMB8400. The lease agreement was signed in March 2019 and expired in Apr il 2020. The Company collected actual rental
of RMB2800 in 2020 and RMB7000 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Delos (Suzhou) Health Technology Co.Ltd. Delos (Suzhou) Health Technology Co. Ltd. leased an office building area of 60 square meters from the Company with an
annual rental of RMB25200. The lease agreement was signed in January 2019 and expired in June 2020. The Company collected
actual rental of RMB12600 in 2020 and RMB25200 in 2019.? In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Culture
52
Development Co. Ltd. Suzhou Gold Mantis Culture Development Co. Ltd. leased an office building area of 1363.21 square meters
and an office building area of 2684.00 square meters from the Company with an annual rental of RMB572500 and RMB644200
respectively. The Company collected actual annual rental of RMB524800 and RMB590500 in 2020 and actual annual rental of
RMB572500 and RMB644200 in 2019.
(2) Other Related-party Transactions
① In 2020 the Company as well as its subsidiaries including Meiruide Gold Mantis Curtain Wall Gold Mantis Landscape
Refined Decoration & Technology Gold Mantis Art Jindejin Construction and Huali Jinshi pa id Suzhou Virtues Construction
Professional Training School training fees of RMB1707800 in total; the Company as well as its subsidiaries including Meiruide
Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School of Suzhou Industrial Park training
fees of RMB188800 in total.② In December 2020 the Company donated RMB3 million to Suzhou Gold Mantis Charity Foundation.The amount of related-party transactions including the above-mentioned lease with related parties and training fees of related
parties totaled RMB7836300 which fell within the permission scope of the General Manager. These transactions had been reviewed
and approved by the General Manager in accordance with the Company's Related-Party Transaction Policy.XVII Significant Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
√ Applicable □ Not applicable
53
(1) Particulars about Guarantees
Unit: RMB'0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Obligor
Disclosure date of
the guarantee line
announcement
Line of
guarantee
Actual occurrence
date
Actual
guarantee
amount
Type of
guarantee
Term of
guarantee
Liability
executed
or not
Guarante
e for a
related
party or
not
Guarantees provided by the Company as the parent for its subsidiaries
Obligor
Disclosure date of
the guarantee line
announcement
Line of
guarantee
Actual occurrence
date
Actual
guarantee
amount
Type of
guarantee
Term of
guarantee
Liability
executed
or not
Guarante
e for a
related
party or
not
Gold Mantis
Refined
Decoration &
Technology
23 May 2018 70000 27 June 2018 5000
Joint-liabil
ity
2018.6.27-2
019.6.27
Yes Not
Gold Mantis
Refined
Decoration &
Technology
23 May 2018 70000 20 December 2018 1097.28
Joint-liabil
ity
2018.12.20-
2019.12.20
Yes Not
Gold Mantis
Refined
Decoration &
Technology
23 May 2018 70000 5 May 2019 3000
Joint-liabil
ity
2019.5.5-20
20.1.14
Yes Not
Gold Mantis
Refined
Decoration &
Technology
21 May 2019 70000 11 June 2019 10000
Joint-liabil
ity
2019.6.11-2
020.6.10
Yes Not
Gold Mantis
Refined
Decoration &
Technology
21 May 2019 70000 4 July 2019 30000
Joint-liabil
ity
2019.7.4-20
20.7.4
Yes Not
Gold Mantis
Refined
Decoration &
Technology
21 May 2019 70000 11 December 2019 5000
Joint-liabil
ity
2019.12.11-
2020.12.11
Yes Not
Gold Mantis
Landscape
23 May 2018 150000 26 June 2018 15000
Joint-liabil
ity
2018.6.26-2
019.6.26
Yes Not
54
Gold Mantis
Landscape
23 May 2018 150000 25 January 2019 5000
Joint-liabil
ity
2019.1.25-2
020.1.24
Yes Not
Gold Mantis
Landscape
23 May 2018 150000 13 May 2019 4000
Joint-liabil
ity
2019.5.13-2
020.5.13
Yes Not
Gold Mantis
Landscape
23 May 2018 150000 13 May 2019 6000
Joint-liabil
ity
2019.5.13-2
020.4.15
Yes Not
Gold Mantis
Landscape
23 May 2018 150000 17 May 2019 1000
Joint-liabil
ity
2019.5.17-2
020.5.15
Yes Not
Gold Mantis
Curtain Wall
24 May 2017 200000 12 December 2017 20000
Joint-liabil
ity
2017.12.12-
2020.12.11
Yes Not
Gold Mantis
Curtain Wall
23 May 2018 280000 27 June 2018 10000
Joint-liabil
ity
2018.6.27-2
019.4.19
Yes Not
Gold Mantis
Curtain Wall
23 May 2018 280000 30 July 2018 37200
Joint-liabil
ity
2018.7.30-2
019.7.29
Yes Not
Gold Mantis
Curtain Wall
23 May 2018 280000 13 May 2019 10000
Joint-liabil
ity
2019.5.13-2
020.5.13
Yes Not
Gold Mantis
Curtain Wall
21 May 2019 320000 31 May 2019 5000
Joint-liabil
ity
2019.5.31-2
020.5.31
Yes Not
Gold Mantis
Curtain Wall
21 May 2019 320000 18 June 2019 10000
Joint-liabil
ity
2019.6.18-2
020.6.17
Yes Not
Gold Mantis
Curtain Wall
21 May 2019 320000 16 September 2019 15670
Joint-liabil
ity
2019.9.16-2
020.9.15
Yes Not
Gold Mantis
Curtain Wall
21 May 2019 320000 14 January 2020 20000
Joint-liabil
ity
2020.1.14-2
021.1.13
Yes Not
Gold Mantis
Curtain Wall
23 May 2018 280000 13 May 2019 20000
Joint-liabil
ity
2019.5.13-2
020.4.15
Yes Not
Meiruide 23 May 2018 280000 18 January 2019 20000
Joint-liabil
ity
2019.1.18-2
020.1.17
Yes Not
Meiruide 23 May 2018 280000 9 April 2019 30000
Joint-liabil
ity
2019.4.9-20
20.4.8
Yes Not
Meiruide 23 May 2018 280000 18 April 2019 10000
Joint-liabil
ity
2019.4.18-2
020.4.17
Yes Not
Meiruide 23 May 2018 280000 13 May 2019 30000
Joint-liabil
ity
2019.5.13-2
020.5.13
Yes Not
Meiruide 23 May 2018 280000 17 May 2019 25000
Joint-liabil
ity
2019.5.17-2
020.5.16
Yes Not
Meiruide 21 May 2019 360000 10 June 2019 5040
Joint-liabil
ity
2019.6.10-2
020.6.10
Yes Not
55
Meiruide 21 May 2019 360000 10 June 2019 4419.95
Joint-liabil
ity
2019.6.10-2
020.6.10
Yes Not
Meiruide 21 May 2019 360000 9 September 2019 7000
Joint-liabil
ity
2019.9.9-20
20.9.8
Yes Not
Meiruide 21 May 2019 360000 27 November 2019 1730
Joint-liabil
ity
2019.11.27-
2020.11.27
Yes Not
Meiruide 21 May 2019 360000 15 December 2019 15000
Joint-liabil
ity
2019.12.15-
2020.12.14
Yes Not
Meiruide 21 May 2019 360000 2 January 2020 15000
Joint-liabil
ity
2020.1.2-20
20.12.31
Yes Not
Meiruide 21 May 2019 360000 24 April 2020 10000
Joint-liabil
ity
2020.4.24-2
021.4.24
Yes Not
Meiruide 23 May 2018 280000 26 June 2018 30000
Joint-liabil
ity
2018.6.26-2
019.6.26
Yes Not
Meiruide 21 May 2019 360000 4 July 2019 40000
Joint-liabil
ity
2019.7.4-20
20.7.4
Yes Not
Gold Mantis Art 23 May 2018 10000 7 August 2018 1200
Joint-liabil
ity
2018.8.7-20
19.8.6
Yes Not
Gold Mantis Art 21 May 2019 10000 24 July 2019 1200
Joint-liabil
ity
2019.7.24-2
020.7.23
Yes Not
Gold Mantis Art 16 May 2020 10000 5 June 2020 1000
Joint-liabil
ity
2020.6.5-20
21.6.5
Yes Not
Gold Mantis Art 16 May 2020 10000 27 July 2020 1200
Joint-liabil
ity
2020.7.27-2
021.7.26
Yes Not
Gold Mantis
Supply Chain
23 May 2018 20000 13 May 2019 5000
Joint-liabil
ity
2019.5.13-2
020.4.15
Yes Not
Gold Mantis
Supply Chain
21 May 2019 20000 28 August 2019 5000
Joint-liabil
ity
2019.8.28-2
020.8.27
Yes Not
Gold Mantis
Supply Chain
21 May 2019 20000 24 September 2019 10000
Joint-liabil
ity
2019.9.24-2
020.9.24
Yes Not
Singapore Gold
Mantis
21 May 2019 50000 28 August 2019 8500.2
Joint-liabil
ity
2019.8.28-2
020.8.28
Yes Not
Singapore Gold
Mantis
21 May 2019 50000 26 September 2019 12731.22
Joint-liabil
ity
2019.9.26-2
020.9.25
Yes Not
Gold Mantis
Refined
Decoration &
Technology
23 May 2018 70000 17 May 2019 4050
Joint-liabil
ity
2019.5.17-2
022.5.16
Not Not
Gold Mantis 16 May 2020 100000 1 June 2020 1500 Joint-liabil 2020.6.1-20 Not Not
56
Refined
Decoration &
Technology
ity 21.5.31
Gold Mantis
Refined
Decoration &
Technology
16 May 2020 100000 26 October 2020 30000
Joint-liabil
ity
2020.10.26-
2021.10.26
Not Not
Gold Mantis
Refined
Decoration &
Technology
16 May 2020 100000 9 December 2020 8000
Joint-liabil
ity
2020.12.9-2
021.12.9
Not Not
Gold Mantis
Refined
Decoration &
Technology
16 May 2020 100000 14 December 2020 10000
Joint-liabil
ity
2020.12.14--
2021.12.13
Not Not
Gold Mantis
Landscape
21 May 2019 150000 18 June 2019 5000
Joint-liabil
ity
2019.6.18-2
020.6.17
Not Not
Gold Mantis
Landscape
21 May 2019 150000 4 July 2019 15000
Joint-liabil
ity
2019.7.4-20
20.7.4
Not Not
Gold Mantis
Landscape
21 May 2019 150000 22 April 2020 6000
Joint-liabil
ity
2020.4.22-2
021.4.21
Not Not
Gold Mantis
Landscape
16 May 2020 150000 23 September 2020 8000
Joint-liabil
ity
2020.9.23-2
021.9.23
Not Not
Gold Mantis
Curtain Wall
23 May 2018 280000 31 May 2018 20000
Joint-liabil
ity
2018.5.31-2
019.5.30
Not Not
Gold Mantis
Curtain Wall
21 May 2019 320000 15 August 2019 37200
Joint-liabil
ity
2019.8.15-2
020.8.14
Not Not
Gold Mantis
Curtain Wall
21 May 2019 320000 11 December 2019 10000
Joint-liabil
ity
2019.12.11-
2020.12.11
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 18 May 2020 10000
Joint-liabil
ity
2020.5.18-2
021.5.18
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 5 June 2020 20000
Joint-liabil
ity
2020.6.5-20
21.5.13
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 18 June 2020 5000
Joint-liabil
ity
2020.6.18-2
021.6.18
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 24 August 2020 37200
Joint-liabil
ity
2020.8.24-2
021.8.23
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 4 November 2020 6000
Joint-liabil
ity
2020.11.4-2
021.8.25
Yes Not
Gold Mantis
Curtain Wall
16 May 2020 320000 23 September 2020 8000
Joint-liabil
ity
2020.9.23-2
021.9.23
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 1 December 2020 17000
Joint-liabil
ity
2020.12.1-2
021.12.1
Not Not
Gold Mantis
Curtain Wall
16 May 2020 320000 10 December 2020 15000
Joint-liabil
ity
2020.12.10-
2021.12.9
Not Not
Meiruide 23 May 2018 280000 26 October 2018 25000
Joint-liabil
ity
2018.10.26-
2019.11.25
Not Not
Meiruide 23 May 2018 280000 13 May 2019 20000
Joint-liabil
ity
2019.5.13-2
020.4.15
Not Not
Meiruide 21 May 2019 360000 28 May 2019 10000
Joint-liabil
ity
2019.5.28-2
020.5.27
Not Not
Meiruide 21 May 2019 360000 8 January 2020 10000
Joint-liabil
ity
2020.1.8-20
21.1.8
Not Not
Meiruide 21 May 2019 360000 17 March 2020 10000
Joint-liabil
ity
2020.3.17-2
021.3.17
Not Not
Meiruide 16 May 2020 420000 18 May 2020 20000
Joint-liabil
ity
2020.5.18-2
021.5.18
Not Not
Meiruide 16 May 2020 420000 5 June 2020 20000
Joint-liabil
ity
2020.6.5-20
21.5.13
Not Not
Meiruide 16 May 2020 420000 11 June 2020 10000
Joint-liabil
ity
2020.6.11-2
021.6.11
Not Not
Meiruide 16 May 2020 420000 10 August 2020 25000
Joint-liabil
ity
2020.8.10-2
021.8.9
Not Not
Meiruide 16 May 2020 420000 23 September 2020 10000
Joint-liabil
ity
2020.9.23-2
021.9.23
Not Not
Meiruide 16 May 2020 420000 24 September 2020 20000
Joint-liabil
ity
2020.9.24-2
021.9.24
Not Not
Meiruide 16 May 2020 420000 26 October 2020 40000
Joint-liabil
ity
2020.10.26-
2021.10.26
Not Not
Gold Mantis
Supply Chain
21 May 2019 20000 28 August 2019 5000
Joint-liabil
ity
2019.8.28-2
020.8.27
Not Not
Gold Mantis
Supply Chain
21 May 2019 20000 24 September 2019 10000
Joint-liabil
ity
2019.9.24-2
020.9.24
Not Not
Gold Mantis
Supply Chain
21 May 2019 20000 8 April 2020 3000
Joint-liabil
ity
2020.4.8-20
21.4.7
Not Not
Gold Mantis
Supply Chain
16 May 2020 30000 5 June 2020 6000
Joint-liabil
ity
2020.6.5-20
21.5.13
Not Not
Gold Mantis
Supply Chain
16 May 2020 30000 26 May 2020 5000
Joint-liabil
ity
2020.5.26-2
021.5.25
Not Not
Singapore Gold
Mantis
16 May 2020 50000 28 August 2020 8266.92
Joint-liabil
ity
2020.8.28-2
021.8.28
Not Not
Singapore Gold
Mantis
16 May 2020 50000 26 September 2020 12261.78
Joint-liabil
ity
2020.9.26-2
021.9.25
Not Not
Jijia Materials 16 May 2020 50000 5 June 2020 6000
Joint-liabil
ity
2020.6.5-20
21.5.13
Not Not
Gold Mantis East
China
16 May 2020 10000 3 July 2020 1000
Joint-liabil
ity
2020.7.3-20
21.7.3
Not Not
Total approved line for such guarantees
in the Reporting Period (B1)
1433000
Total actual amount of
such guarantees in the
Reporting Period (B2)
1071467.35
Total approved line for such guarantees
at the end of the Reporting Period (B3)
1433000
Total actual balance of
such guarantees at the
end of the Reporting
Period (B4)
549478.7
Guarantees provided between subsidiaries
Obligor
Disclosure date of
the guarantee line
announcement
Line of
guarantee
Actual occurrence
date
Actual
guarantee
amount
Type of
guarantee
Term of
guarantee
Liability
executed
or not
Guarante
e for a
related
party or
not
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the
Reporting Period (A1+B1+C1)
1433000
Total actual guarantee
amount in the
Reporting Period
(A2+B2+C2)
1071467.35
Total approved guarantee line at the end
of the Reporting Period (A3+B3+C3)
1433000
Total actual guarantee
balance at the end of
the Reporting Period
(A4+B4+C4)
549478.7
Total actual guarantee amount (A4+B4+C4) as a % of the Company’s net
assets
32.31%
Of which:
Balance of guarantees provided for shareholders the actual controller and
their related parties (D)
0
Balance of debt guarantees provided directly or indirectly for entities
with an over 70% debt/asset ratio (E)
0
Amount by which the total guarantee amount exceeds 50% of the
Company’s net assets (F)
0
Total of the three amounts above (D+E+F) 0
Liabilities executed in the Reporting Period and possibility of having to
execute joint liability on outstanding guarantees (if any)
N/A
Irregularities in the provision of guarantees to external parties (if any) N/A
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of wealth management entrustments in the Reporting Period:
Unit: RMB’0000
Type Funding source Amount Undue amount
Unrecovered overdue
amount
Bank’s wealth
management product
Self-funded 216060 216060 0
Total 216060 216060 0
High-risk wealth management transactions with a significant single a mount or with low security low liquidity and no principal
protection:
√ Applicable □ Not applicable
Unit: RMB’0000
Consign
ee
Type
of
consi
gnee
Type
of
product
Amou
nt
Fundi
ng
source
Start
date
End
date
Invest
ment
directi
on
Way
of
repay
ment
Refere
nce
annual
ized
rate of
return
Expect
ed
returns
(if
any)
Actual
gain/lo
ss in
the
Report
ing
Period
Recov
ery/pa
yment
of
gain/lo
ss in
the
Report
ing
Period
Impair
ment
allowa
nce (if
any)
Throu
gh the
statuto
ry
proced
ure or
not
Contin
uing
wealth
manag
ement
plans
or not
Summ
ary
and
index
to
releva
nt
infor
matio
n (if
any)
Suzhou
branch
Bank
Princip
al-prot
50000
Self-fu
nded
28
Dece
*
Low-ri
sk
Princi
pal
1.48% 17.59 4.69 - Yes Yes
of
CITIC
Bank
ected
with
floatin
g
income
mber
2020
wealth
manag
ement
produc
t
repay
ment
with
interes
t upon
maturi
ty
Business
Departm
ent of
the
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
15000
Self-fu
nded
31
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.48% - Yes Yes
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
10000
Self-fu
nded
31
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.10% - Yes Yes
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
8960
Self-fu
nded
31
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.48% 1.89 0.34 - Yes Yes
Gusu
branch
of Bank
of
Commu
nications
Bank
Princip
al-prot
ected
with
floatin
g
income
8000
Self-fu
nded
30
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.59% 1.15 0.35 - Yes Yes
Suzhou
branch
of Bank
of
Shangha
i
Bank
Princip
al-prot
ected
with
floatin
g
income
7000
Self-fu
nded
24
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.50% 5.36 1.34 - Yes Yes
Suzhou
branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
26
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 38.89 13.56 - Yes Yes
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
26
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.75% 51.45 24.86 - Yes Yes
Suzhou
branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
6
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 32.59 11.3 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
5
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
1.50% 32.15 11.51 - Yes Yes
maturi
ty
Suzhou
branch
of Bank
of
Shangha
i
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
19
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.20% 30.36 18.41 - Yes Yes
Gusu
branch
of Bank
of
Commu
nications
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.56% 23.45 4.49 - Yes Yes
Gusu
branch
of Bank
of
Commu
nications
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.56% 23.45 4.49 - Yes Yes
Suzhou
branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
21
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 6.95 2.05 - Yes Yes
Suzhou
branch
of Bank
of
Shangha
Bank
Princip
al-prot
ected
with
floatin
5000
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
Princi
pal
repay
ment
with
3.20% 8.56 2.88 - Yes Yes
i g
income
produc
t
interes
t upon
maturi
ty
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
31
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.48% - Yes Yes
Gusu
branch
of Bank
of
Commu
nications
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
21
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.00% 14.59 3.21 - Yes Yes
Hengjin
g branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
5000
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.10% 26.48 7.3 - Yes Yes
Duyun
branch
of
Agricult
ural
Bank of
China
Bank
Princip
al-prot
ected
with
floatin
g
income
4300
Self-fu
nded
30
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.30% 29.39 11.55 - Yes Yes
Suzhou
branch
of
Bank
Princip
al-prot
ected
4300
Self-fu
nded
11
Nove
mber
*
Low-ri
sk
wealth
Princi
pal
repay
2.40% 27.36 14.14 - Yes Yes
Industria
l Bank
with
floatin
g
income
2020 manag
ement
produc
t
ment
with
interes
t upon
maturi
ty
Duyun
branch
of
Agricult
ural
Bank of
China
Bank
Princip
al-prot
ected
with
floatin
g
income
4000
Self-fu
nded
30
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.30% 21.39 5.46 - Yes Yes
Suzhou
Industria
l Park
branch
of Bank
of
Shangha
i
Bank
Princip
al-prot
ected
with
floatin
g
income
3000
Self-fu
nded
5
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.16% 28.76 14.54 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
3000
Self-fu
nded
18
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 7.35 2.96 - Yes Yes
Suzhou
branch
of China
Merchan
ts Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
3000
Self-fu
nded
18
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.80% 8.26 2.99 - Yes Yes
Duyun Bank Princip 2700 Self-fu 20 * Low-ri Princi 2.30% 13.59 8.41 - Yes Yes
branch
of
Agricult
ural
Bank of
China
al-prot
ected
with
floatin
g
income
nded Octob
er
2020
sk
wealth
manag
ement
produc
t
pal
repay
ment
with
interes
t upon
maturi
ty
Suzhou
branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
2600
Self-fu
nded
16
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.20% 32.56 17.32 - Yes Yes
Suzhou
branch
of Ping
An Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
2500
Self-fu
nded
23
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.65% 2.95 0.9 - Yes Yes
Suzhou
branch
of Ping
An Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
2500
Self-fu
nded
23
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.65% 2.95 0.9 - Yes Yes
Suzhou
branch
of Bank
of China
Bank
Princip
al-prot
ected
with
floatin
g
income
2400
Self-fu
nded
16
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
3.20% 30.28 15.99 - Yes Yes
ty
Business
Departm
ent of
Suning
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
2000
Self-fu
nded
20
Februa
ry
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.00% 85.36 32.57 - Yes Yes
Duyun
branch
of
Agricult
ural
Bank of
China
Bank
Princip
al-prot
ected
with
floatin
g
income
2000
Self-fu
nded
20
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.30% 8.95 3.58 - Yes Yes
Suzhou
Zhongxi
n
sub-bran
ch of
China
Merchan
ts Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
2000
Self-fu
nded
11
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.15% 6.54 1.26 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
1150
Self-fu
nded
23
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.40% 2.28 0.6 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
1100
Self-fu
nded
19
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
Princi
pal
repay
ment
with
interes
2.40% 9.45 5.28 - Yes Yes
income t t upon
maturi
ty
Business
Departm
ent of
Suning
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
1000
Self-fu
nded
20
Februa
ry
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.00% 49.56 16.28 - Yes Yes
Suzhou
branch
of Bank
of
Shangha
i
Bank
Princip
al-prot
ected
with
floatin
g
income
1000
Self-fu
nded
5
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.16% 15.56 4.85 - Yes Yes
Linhu
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
1000
Self-fu
nded
23
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 1.19 0.31 - Yes Yes
Suzhou
Industria
l Park
sub-bran
ch of
Bank of
Shangha
i
Bank
Princip
al-prot
ected
with
floatin
g
income
1000
Self-fu
nded
3
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.16% 11.29 5.02 - Yes Yes
Suzhou
branch
of
CITIC
Bank
Princip
al-prot
ected
with
1000
Self-fu
nded
5
Dece
mber
2020
*
Low-ri
sk
wealth
manag
Princi
pal
repay
ment
3.65% 8.27 2.6 - Yes Yes
Bank floatin
g
income
ement
produc
t
with
interes
t upon
maturi
ty
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
950
Self-fu
nded
21
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.40% 7.36 4.44 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
900
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.40% 4.26 1.24 - Yes Yes
Linhu
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
800
Self-fu
nded
10
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 4.98 2.54 - Yes Yes
Linhu
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
700
Self-fu
nded
10
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 6.58 2.23 - Yes Yes
Linhu
sub-bran
Bank
Princip
al-prot
700
Self-fu
nded
31
Dece
*
Low-ri
sk
Princi
pal
1.50% - Yes Yes
ch of
Agricult
ural
Bank
ected
with
floatin
g
income
mber
2020
wealth
manag
ement
produc
t
repay
ment
with
interes
t upon
maturi
ty
Xietang
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
700
Self-fu
nded
10
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.90% 3.15 0.72 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
600
Self-fu
nded
19
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.60% 4.56 1.92 - Yes Yes
Linhu
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
600
Self-fu
nded
20
Nove
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.50% 2.18 0.95 - Yes Yes
Suzhou
branch
of
CITIC
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
600
Self-fu
nded
26
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
3.05% 2.12 0.25 - Yes Yes
Xietang
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
500
Self-fu
nded
23
Januar
y 2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.55% 28.56 11.97 - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
500
Self-fu
nded
17
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.40% 2.35 0.46 - Yes Yes
Xietang
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
500
Self-fu
nded
21
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.90% 1.56 0.25 - Yes Yes
Xietang
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
300
Self-fu
nded
25
April
2019
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.70% 17.76 7.66 - Yes Yes
Xietang
sub-bran
ch of
Agricult
ural
Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
300
Self-fu
nded
26
Nove
mber
2019
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
2.55% 10.38 7.74 - Yes Yes
maturi
ty
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
300
Self-fu
nded
9
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.40% 2.28 0.43 - Yes Yes
Xiangch
eng
sub-bran
ch of
Industria
l and
Commer
cial
Bank of
China
Bank
Princip
al-prot
ected
with
floatin
g
income
300
Self-fu
nded
21
Dece
mber
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
2.66% - Yes Yes
Suzhou
branch
of
Industria
l Bank
Bank
Princip
al-prot
ected
with
floatin
g
income
300
Self-fu
nded
16
Octob
er
2020
*
Low-ri
sk
wealth
manag
ement
produc
t
Princi
pal
repay
ment
with
interes
t upon
maturi
ty
1.60% 4.26 1.18 - Yes Yes
Total
21606
0
-- -- -- -- -- -- 820.54 322.27 -- -- -- --
*Note: Returns on investments in these wealth management products were calculated based on actual duration days for there were no
nominal durations for them.Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.4. Significant Contracts Arising in the Ordinary Course of Business
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVIII Social Responsibility
1. Fulfillment of Social Responsibility
Please refer to the full Social Responsibility Report of the Company disclosed on www.cninfo.com.cn dated 30 April 2021.
2. Measures Taken for Targeted Poverty Alleviation
The Company did not carry out any work for targeted poverty alleviation in the Reporting Period and has no such plans for
now.
3. Information Related to Environmental Protection
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by the environmental authorities.□ Yes √ No
Not applicable.XIX Other Significant Events
√ Applicable □Not applicable
No other significant events.The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
1. Qualifications in 2020:
(1) Type of Industrial Qualifications Obtained within the Reporting Period as well as the Valid Periods
Company name Name of the qualification Class of the
qualification
Validity term Type of
change
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Firefighting Facility Engineering
Professional Contractor
Class Two To 31 December
2021
Added
(2) Information about Significant Changes to Relevant Qualifications in the Reporting Period
Company name Name of the qualification Class of the Validity term Type of
qualification change
Suzhou Gold Mantis Curtain Wall Co. Ltd. Curtain Wall Engineering Design Class A To 16 March
2025
Renew
(3) Information about the Expiration and Renewal of Relevant Qualifications in the Next Reporting Period
Company name Name of the qualification Class of the
qualification
Validity term Remarks
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Construction Decoration Engineering
Professional Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Curtain Wall Engineering Professional
Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Mechanical and Electrical Equipment
Installation Engineering Professional
Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Firefighting Facility Engineering
Professional Contractor
Class Two To 31 December
2021
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Urban and Road Lighting Engineering
Professional Contractor
Class Three To 31 December
2021
Suzhou Gold Mantis Construction Decoration
Co. Ltd.
Construction Engineering General
Contractor
Class Three To 31 December
2021
Suzhou Gold Mantis Landscape Co. Ltd. Ancient-Style Construction
Engineering Professional Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Landscape Co. Ltd. Municipal Public Works General
Contractor
Class Three To 31 December
2021
Suzhou Gold Mantis Landscape Co. Ltd. Environmental Protection Engineering
Professional Contractor
Class Three To 31 December
2021
Gold Mantis Refined Decoration &
Technology (Suzhou) Co. Ltd.
Construction Decoration Engineering
Professional Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Curtain Wall Co. Ltd. Curtain Wall Engineering Professional
Contractor
Class One To 31 December
2021
Suzhou Gold Mantis Curtain Wall Co. Ltd. Steel-structure Engineering
Professional Contractor
Class Two To 31 December
2021
Suzhou Gold Mantis Curtain Wall Co. Ltd. Construction Decoration Engineering
Professional Contractor
Class Two To 31 December
2021
Suzhou Gold Mantis Curtain Wall Co. Ltd. Urban and Road Lighting Engineering
Professional Contractor
Class Three To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Construction Decoration Engineering
Professional Contractor
Class One To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Curtain Wall Engineering Professional
Contractor
Class One To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Mechanical and Electrical Equipment
Installation Engineering Professional
Class Two To 31 December
2021
Contractor
Suzhou Meiruide Construction Decoration
Co. Ltd.
Construction Engineering General
Contractor
Class Three To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Steel-structure Engineering
Professional Contractor
Class Three To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Urban and Road Lighting Engineering
Professional Contractor
Class Three To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Construction Decoration Engineering
Design
Class A To 31 December
2021
Suzhou Meiruide Construction Decoration
Co. Ltd.
Curtain Wall Engineering Design Class A To 31 December
2021
At present the Company's staffing business results equipment and other aspects all satisfy the requirements on renewal of
relevant qualifications.XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the current period (+/-) After
Shares
Percenta
ge (%)
New
issues
Shares
as
divide
nd
conver
ted
from
profit
Shares
as
dividend
converte
d from
capital
reserves
Other Subtotal Shares
Percenta
ge (%)
1. Restricted shares 80724473 3.02%
8000
000
-10495854 -2495854 78228619 2.92%
1.1 Shares held by the
state
1.2 Shares held by
state-owned corporations
1.3 Shares held by other
domestic investors
80724473 3.02%
8000
000
-10495854 -2495854 78228619 2.92%
Including: Shares held
by domestic corporations
Shares held
by domestic individuals
80724473 3.02%
8000
000
-10495854 -2495854 78228619 2.92%
1.4 Shares held by
overseas investors
Including: Shares held
by overseas corporations
Shares held
by overseas individuals
2. Unrestricted shares 2595684216 96.98% 9445854 9445854 2605130070 97.08%
2.1 RMB-denominated
ordinary shares
2595684216 96.98% 9445854 9445854 2605130070 97.08%
2.2 Domestically listed
foreign shares
2.3 Overseas listed
foreign shares
2.4 Others
3. Total shares 2676408689 100.00%
8000
000
-1050000 6950000 2683358689 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
1. During the Reporting Period the shares of the Company held by the directors supervisors and senior management were
locked and unlocked accordingly in accordance with the relevant regulations on the management of shares and their changes.
2. On 23 January 2020 the Company completed the registration of the grant of reserved restricted shares for the 2018 restricted
share incentive plan granted 8 million restricted shares to 14 awardees. The total share capital of the Company increased to
2684408689 shares.
3. On 9 June 2020 9615000 shares with the restriction conditions lifted in the first lifting restriction period for the first grant
portion of the 2018 restricted share incentive plan were listed for trading.
4. On 13 July 2020 the Company completed the repurchase and cancellation of some restricted shares after which the total
share capital of the Company changed from 2684408689 shares to 2683358689 shares.
Approval of share changes:
√ Applicable □ Not applicable
In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018 upon the deliberation
and approval of the 1st Extraordinary Meeting of the 6th Board of Directors and the 1st Extraordinary Meeting of the 6th Supervisory
Committee the Company completed the registration of the grant of 8 million restricted shares under the reserved portion of the 2018
restricted share incentive plan. The reserved portion of restricted shares granted would be listed on 23 January 2020.In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018 upon the deliberation
and approval of the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th Supervisory Committee the Company
processed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan in the first
lifting restriction period for the first grant portion of the 2018 restricted share incentive plan. The trading restrictions on 9615000
restricted shares were lifted and the stocks would be listed on 9 June 2020.Upon the deliberation and approval of the 5th Meeting of the 6th Board of Directors the 5th Meeting of the 6th Supervisory
Committee and the 2019 Annual General Meeting the repurchase and cancellation of 1050000 restricted shares were completed.
The total share capital of the Company changed to 2683358689 shares.Transfer of share ownership:
√ Applicable □ Not applicable
The listing date of 8 million restricted shares granted under the reserved portion of the Company's 2018 restricted share
incentive plan was 23 January 2020.The listing date of 9615000 restricted shares with the restriction conditions lifted in the first lifting restriction perio d for the
first grant portion of the Company's 2018 restricted share incentive plan was 9 June 2020.The repurchase and cancellation of 1.05 million restricted shares under the Company's 2018 restricted share incentive plan were
completed on 13 July 2020.Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share diluted earnings per share equity per share attributable to the Co mpany’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period respectively:
√ Applicable □ Not applicable
Based on the latest diluted share capital of 2683358689 shares earnings per share for 2019 and Q3 2020 were RMB0.88 and
RMB0.64 respectively and equity per share for 2019 and Q3 2020 were RMB5.65 and RMB6.12 respectively.
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Shareholder
Opening
restricted shares
Increase in
restricted shares
in the current
period
Unlocked in the
current period
Closing restricted
shares
Reason for
restriction
Date of unlocking
Locked-up shares
of senior
management
47624473 699858 530712 47793619
Locked-up shares
of senior
management
Pursuant to the
regulations on
shares held by
senior
management
Restricted shares
as equity
incentives
33100000 8000000 10665000 30435000
Locked-up as
equity incentives
Pursuant to the
Company’s
restricted share
incentive plans
Total 80724473 8699858 11195712 78228619 -- --
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
Name of stock and its
derivative securities
Issue date
Issue price
(or interest
rate)
Issued
number
Listing date
Number
approved
for public
trading
Terminati
on date of
transactio
n
Index to
disclosed
information
Disclosure
date
Stocks
Grant of the reserved
portion under the 2018
Restricted Share
Incentive Plan
23 January
2020
4.01
800000
0
23 January 2020 8000000
Convertible corporate bonds convertible corporate bonds with warrants and corporate bonds
Other derivative securities
Particulars about the securities (exclusive of preference shares) issued in the Reporting Period:
For further information please refer to “XV Equity Incentive Plans Employee Stock Ownership Plans or Other IncentiveMeasures for Employees” in “Part V Significant Events” herein.
2. Changes in Total Shares as well as Ownership Asset and Liability Structures
√ Applicable □ Not applicable
As at the disclosure date both the total number of shares and the shareholder structure of the Company have changed.
Information about the changes in the total number of shares and the shareholder structure is provided in "I. Changes in Share s
Capital" of this section. The Company received RMB32.08 million of exercise funds from the awardees after the reserved portion of
the 2018 restricted share incentive plan was granted which further expanded the asset size.
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
Number of
ordinary
63192
Number of
ordinary
77426
Number of
preference
0
Number of
preference
0
shareholders at
the period-end
shareholders at
the month-end
prior to the
disclosure of this
Report
shareholders with
resumed voting
rights at the
period-end (if any)
(see note 8)
shareholders
with resumed
voting rights at
the month-end
prior to the
disclosure of this
Report (if any)
(see note 8)
5% or greater shareholders or top 10 shareholders
Name of shareholder
Nature of
shareholder
Shareholdi
ng
percentage
Total shares
held at the
period-end
Increase/d
ecrease in
the
Reporting
Period
Restricted
shares held
Unrestricted
shares held
Shares in
pledge or
frozen
Statu
s
Sha
res
Suzhou Gold Mantis Enterprise (Group)
Co. Ltd.
Domestic
non-state-o
wned
corporation
23.69% 635805330 -17000000 0 635805330
Golden Feather Corporation
Overseas
corporation
23.67% 635042264 0.00 0 635042264
Perseverance Asset Management
Partnership L.L.P.－Perseverance Linshan
No.1 Yuanwang Fund
Other 4.10% 110000000
1100000
00
0 110000000
Hong Kong Securities Clearing Company
Limited
Overseas
corporation
2.48% 66625915 -8752925 0 66625915
China Securities Finance Corporation
Limited
Domestic
non-state-o
wned
corporation
2.47% 66269137 -6011048 0 66269137
Central Huijin Asset Management Ltd.
State-owned
corporation
1.11% 29843550 0 0 29843550
Zhou Wenhua
Domestic
individual
1.05% 28081956 -9360652 28081956 0
GIC Private Limited
Overseas
corporation
0.95% 25529095 -7042577 0 25529095
Dalian Tonghe Investment Co. Ltd.－
Tonghe Progressive Private Investment
Fund (12)
Other 0.85% 22882724 1753800 0 22882724
Dalian Tonghe Investment Co. Ltd.－
Tonghe Fuxiang Investment Fund (1)
Other 0.72% 19374136 1186749 0 19374136
Strategic investor or general corporation becoming a
top-10 shareholder in a rights issue (if any) (see note 3)
N/A
Related or acting-in-concert parties among the
shareholders above
Suzhou Gold Mantis Enterprise (Group) Co. Ltd. and Golden Feather
Corporation are controlled by the Company’s actual controller Zhu
Xingliang.Shareholders above entrusting/entrusted with or
waiving voting rights
N/A
Top 10 unrestricted shareholders
Name of shareholder
Unrestricted shares held at the
period-end
Shares by class
Class Shares
Suzhou Gold Mantis Enterprise (Group)
Co. Ltd.
635805330
RMB-denominated ordinary
shares
635805330
Golden Feather Corporation 635042264
RMB-denominated ordinary
shares
635042264
Perseverance Asset Management
Partnership L.L.P.－Perseverance
Linshan No.1 Yuanwang Fund
110000000
RMB-denominated ordinary
shares
110000000
Hong Kong Securities Clearing
Company Limited
66625915
RMB-denominated ordinary
shares
66625915
China Securities Finance Corporation
Limited
66269137
RMB-denominated ordinary
shares
66269137
Central Huijin Asset Management Ltd. 29843550
RMB-denominated ordinary
shares
29843550
GIC Private Limited 25529095
RMB-denominated ordinary
shares
25529095
Dalian Tonghe Investment Co. Ltd.－
Tonghe Progressive Private Investment
Fund (12)
22882724
RMB-denominated ordinary
shares
22882724
Dalian Tonghe Investment Co. Ltd.－
Tonghe Fuxiang Investment Fund (1)
19374136
RMB-denominated ordinary
shares
19374136
Zhu Xingliang 18327718
RMB-denominated ordinary
shares
18327718
Related or acting-in-concert parties among top 10
unrestricted public shareholders as well as between top
10 unrestricted public shareholders and top 10
shareholders
Suzhou Gold Mantis Enterprise (Group) Co. Ltd. and Golden Feather
Corporation are controlled by the Company’s actual controller Zhu
Xingliang.Top 10 ordinary shareholders involved in securities
margin trading (if any) (see note 4)
Shareholder Suzhou Gold Mantis Enterprise (Group) Co. Ltd. held
635805330 shares in the Company in its ordinary securities account and
17000000 shares in the Company in its securities refinancing margin
account in China Securities Finance Corporation Limited totaling
652805330 shares.
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any promissory repurchase during the Reporting Period.□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: foreign-controlled
Type of the controlling shareholder: corporation
Name of the controlling
shareholder
Legal
representative/p
erson-in-charge
Date of
incorporati
on
Organization code Principal activities
Suzhou Gold Mantis
Enterprise (Group) Co.
Ltd.Zhu Haiqin
28 March
2001
9132059472727698
00 (unified social
credit code)
Industrial investments (except for projects
exclusively controlled by the state); sale of
construction materials; engineering and construction;
and business management consulting services
(where an administrative permit is required
according to law it shall be obtained before
operation)
Interests held in other
domestically and overseas
listed companies in the
Reporting Period
As at the end of the Reporting Period Gold Mantis Group held 2500000 shares (0.63%) in Guangzhou
Football Club Co. Ltd. (stock name: ST Guangzhou Football; stock code: 834338). ST Guangzhou
Football has been delisted from the National Equities Exchange and Quotations since 10 March 2021.
Also Gold Mantis Group held 1576000 shares (0.047%) in Tysan Holdings Limited (stock name:
Tysan Holdings; stock code: 00687). In addition Gold Mantis Group participated in the subscription for
new stocks such as Ruixin Technology Xiangjia Animal Husbandry and CEM during the Reporting
Period.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: overseas individual
Type of the actual controller: individual
Name of the actual controller
Relationship with the actual
controller
Nationality
Residency in other countries or
regions or not
Zhu Xingliang Actual controller himself Hong Kong China Yes
Main occupations and positions
Chairman of the Board of Suzhou Gold Mantis Holding Co. Ltd. Director of Suzhou Gold
Mantis Enterprise (Group) Co. Ltd. Chairman of the Board of Golden Feather Corporation
Director of Suzhou LJT Intelligent Technology Co. Ltd. General Manager of Suzhou Gold Gain
Investment Co. Ltd. Chairman of the Board of Suzhou Nuojin Investment Co. Ltd. Chairman of
the Board of Suzhou Nuojin Finance Lease Co. Ltd. Executive Director of Jintang Capital
Holdings Co. Ltd. Director of Singapore Gold Mantis Pte. Ltd. and Director of HBA Holdings
Pte. Ltd.
Controlling interests in other
domestically and overseas listed
companies in the past 10 years
N/A
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Name of corporate shareholder Legal Date of Registered capital Principal activities
51.32％ 23.67％ 24.33％
73.06％ 26.27％
70％ 30％
Zhu Xingliang
Suzhou Gold Mantis Holding Co. Ltd.Suzhou Gold Mantis Enterprise (Group) Co. Ltd.Golden Feather Corporation Other shareholders
Suzhou Gold Mantis Construction Decoration Co. Ltd.Zhu Haiqin
Other
shareholders
100％
0.67％
0.68％
representative/person-in
-charge
incorporation
Golden Feather Corporation Zhu Xingliang 24 July 1998 USD1 Industrial investment
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.Part IX Directors Supervisors Senior Management and Staff
I Changes in the Shareholdings of Directors Supervisors and Senior Management
Name Office title
Incum
bent/F
ormer
Gende
r
Age
Start of office
term
End of office
term
Opening
shareholdin
g (share)
Increa
se in
the
current
period
(share)
Decrease
in the
current
period
(share)
Other
increase
/decreas
e
(share)
Closing
shareholdin
g (share)
Wang
Hanlin
Chairman
of the
Board
Incum
bent
Male 47 8 April 2016 2 April 2022 3000000 0 0 0 3000000
Cao
Liming
Director
and
General
Manager
Incum
bent
Male 42 8 April 2016 2 April 2022 3199808 0 0 0 3199808
Shi
Guoping
Director
and
Executive
Deputy
General
Manager
Incum
bent
Male 43 23 May 2017 2 April 2022 3000000 0 0 0 3000000
Zhu Ming Director
Incum
bent
Male 36 20 May 2015 2 April 2022 0 0 0 0 0
Zhu
Xingquan
Director
and Deputy
General
Manager
Incum
bent
Male 57
15 November
2004
2 April 2022 6266027 0 1566500 0 4699527
Zhang
Xinhong
Director
Incum
bent
Male 43 15 May 2020 2 April 2022 0 0 0 0 0
Wan
Jieqiu
Independen
t Director
Incum
bent
Male 66 8 April 2016 2 April 2022 0 0 0 0 0
Yu
Xuehua
Independen
t Director
Incum
bent
Male 58 8 April 2016 2 April 2022 0 0 0 0 0
Zhao
Zengyao
Independen
t Director
Incum
bent
Male 58 3 April 2019 2 April 2022 0 0 0 0 0
Zhu
Panying
Chairman
of the
Incum
bent
Femal
e
49
12 September
2016
2 April 2022 24000 0 0 0 24000
Supervisor
y
Committee
Qian Ping Supervisor
Incum
bent
Femal
e
54 8 April 2016 2 April 2022 4800 0 0 0 4800
Zhang
Jun
Supervisor
Incum
bent
Male 49
25 March
2013
2 April 2022 67500 0 0 0 67500
Wang
Hong
Deputy
General
Manager
Incum
bent
Male 53 17 April 2010 2 April 2022 1010469 0 0 0 1010469
Dong
Sheng
Deputy
General
Manager
Incum
bent
Male 45 8 April 2016 2 April 2022 500000 0 0 0 500000
Cai
Guohua
Deputy
General
Manager
and Chief
Financial
Officer
Incum
bent
Male 46 8 April 2016 2 April 2022 500000 0 0 0 500000
Ning Bo
Deputy
General
Manager
and Board
Secretary
Incum
bent
Male 39 2 March 2018 2 April 2022 500000 0 0 0 500000
Total -- -- -- -- -- -- 18072604 0 1566500 0 16506104
II Changes of Directors Supervisors and Senior Management
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Zhang Xinhong Director Elected 15 May 2020 Elected as a Director at the 2019 Annual General Meeting
III Biographical Information
Professional backgrounds main work experience and current positions in the Company of the incumbent directors supervisors a nd
senior management:
Wang Hanlin: Mr. Wang was previously a Project Manager of Jiangsu Sinda Decoration Co. Ltd. and the General Manager of a
branch of Suzhou Gold Mantis Construction Decoration Co. Ltd. He currently serves as the Chairman of the Board of the Company
a Vice President of China Building Decoration Association a Director of Gold Mantis Prefabricated Construction Technology
(Suzhou) Co. Ltd. a Director of Gold Mantis Refined Decoration & Technology (Suzhou) Co. Ltd. a Director of Gold Mantis
Supply Chain Management (Suzhou) Co. Ltd. the Chairman of the Board of Gold Mantis Art Co. Ltd. the Chairman of the Board
of Gold Mantis North China (Beijing) Construction Decoration Engineering Co. Ltd. a Director of Gold Mantis Home Decoration
E-commerce (Suzhou) Co. Ltd. a Director of Suzhou Gold Mantis Landscape Co. Ltd. the Chairman of the Board of Gold Mantis
East China Construction Decoration Co. Ltd. and a Director of Singapore Gold Mantis Pte. Ltd.
Cao Liming: Mr. Cao previously served as the Director of the Human Resources Department and the Director of the Legal
Counsel Office of Nanjing Lianqiang Metallurgical Group Co. Ltd.; the Director of the Risk Management Department of Nanjing
BC Foods Co. Ltd.; the General Manager Assistant and the Manager of the Legal Depart ment and the Financial Settlement
Department of Suzhou Meiruide Construction Decoration Co. Ltd.; the General Manager Assistant and the Manager of the Legal
and Contract Center of Suzhou Gold Mantis Construction Decoration Co. Ltd.; an Executive Deputy General Manager of the
Marketing Center of Suzhou Gold Mantis Construction Decoration Co. Ltd.; the General Manager of the marketing company; a Vice
President and Executive Director of Suzhou Exploration & Design Association and the President of the Decoration Design Branch.Now he serves as a Director and the General Manager of the Company a Director of Gold Mantis Art Co. Ltd. a Director of Suzhou
Gold Mantis Landscape Co. Ltd. the General Manager of Suzhou Gold Mantis Construction Investment Co. Ltd. a Director of
Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co. Ltd. a Director of Gold Mantis East China
Construction Decoration Co. Ltd. the Chairman of the Board of Gold Mantis (International) Construction Decoration Limited a
Director of Gold Mantis International Development Co. Ltd. the Chairman of the Board of Gold Mantis HK Construction
Decoration Limited and a director of Sierra Gold Mantis Joint Venture (Private) Limited.
Zhu Ming: Mr. Zhu previously served as the General Manager of Suzhou LJT Intelligent Technology Co. Ltd. and is currently
a Director of the Company a Director of Suzhou Gold Mantis Enterprise (Group) Co. Ltd. a Director of Suzhou Gold Mantis
Holding Co. Ltd. a Director of Suzhou Nuojin Investment Co. Ltd. a Director of Suzhou LJT Intelligent Technology Co. Ltd. a
Director of Suzhou Gold Mantis Yihe Technology Co. Ltd. a director of Suzhou Meiruide Construction Decoration Co. Ltd. a
director of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co. Ltd. a Director of Suzhou Gold Mantis
Landscape Co. Ltd. a Director of Gold Mantis Prefabricated Construction Technology (Suzhou) Co. Ltd. a Director of Suzhou
Gold Mantis Construction Investment Co. Ltd. a Director of Suzhou Gold Mantis Curtain Wall Co. Ltd. a Director of Singapore
Gold Mantis Pte. Ltd. a Director of HBA Holdings Pte. Ltd. a Director of Gold Mantis Refined Decoration & Technology (Suzho u)
Co. Ltd. a Director of Gold Mantis Home Decoration E-commerce (Suzhou) Co. Ltd. a Director of Gold Mantis Supply Chain
Management (Suzhou) Co. Ltd. a Director of Suzhou Gold Mantis Culture Development Co. Ltd. a Director of Suzhou Jinnuo
Commercial Factoring Co. Ltd. a Director of Suzhou Nuojin Finance Lease Co. Ltd. a Director of Shanghai Tangjinmei Data
Technology Co. Ltd. a Director of Guangzhou Jinnuo Microfinance Co. Ltd. the Chairman of the Board of Suzhou Huizhu
Information Technology Co. Ltd. and a Director of Suzhou Gold Mantis Char ity Foundation.Zhu Xingquan: Mr. Zhu previously served as a Manager of Suzhou Jinda Decoration Co. Ltd.; and the Manager of the
Department VIII the Manager of Branch V the General Manager Assistant a Deputy General Manager of Suzhou Gold Mantis
Construction Decoration Co. Ltd. He is currently a Director and a Deputy General Manager of the Company an Executive Director
of Jiangsu Decoration Association a Vice Chairman of Suzhou Decoration Industry Association the Chairman of the Board and
General Manager of Suzhou Meiruide Construction Decoration Co. Ltd. an Executive Director of Suzhou Meiruide Building
Materials Co. Ltd. and a Director of Suzhou Gold Mantis Charity Foundation.Shi Guoping: Mr. Shi previously served as a Project Manager of the Company the General Manager of Branch V the Regional
Manager of the Management Region VIII and a Deputy General Manager of the Engineering Management Center. He is now a
Director and a Deputy General Manager of the Company the Chairman of the Board and General Manager of Suzhou Industrial Park
Gold Mantis Furniture Design and Manufacturing Co. Ltd. a Director of Gold Mantis East China Construction Decoration Co. Ltd.the Chairman of the Board of Suzhou Huali Jinshi Construction Decoration Co. Ltd. a Director of Macao Gold Mantis Construction
Decoration Limited and an Executive Director of Gold Mantis International Development Co. Ltd.
Zhang Xinhong: Mr. Zhang was previously a Deputy Departmental Manager of Jiangsu Gangning Decoration Co. Ltd. and the
General Manager of Branch III of Suzhou Gold Mantis Construction Decoration Co. Ltd. Now he is a Director of the Company.Yu Xuehua: Mr. Yu was previously a Lecturer at Nanjing Agricultural University and is now an Independent Director of the
Company an Associate Professor and Master's Supervisor of Accounting at Soochow University an Independent Director of Jiangsu
Shagang Co. Ltd. an Independent Director of Jiangsu Hengli Hydraulic Co. Ltd. an Independent Director of Jiangsu Tongrun
Equipment Co. Ltd. and an Independent Director of General Elevator Co. Ltd.
Wan Jieqiu: Mr. Wan was previously a teacher of Xi'an Army Academy a Lecturer and an Associate Professor of the Faculty of
Finance and Economics of Soochow University. Now he is an Independent Director of the Company a Professor and Doctoral
Supervisor of Soochow University an Independent Director of Nanji E-commerce Co. Ltd. and an Independent Director of Freewon
China Co. Ltd.
Zhao Zengyao: Mr. Zhao was previously a Lecturer Associate Professor and Professor of Northwest University and an
Independent Director of the Company. He is currently a Professor of the Faculty of Business of Soochow University an Indepen dent
Director of Jiangsu Sidike New Materials Science & Technology Co. Ltd. and an Independent Director of Jiangsu Alcha Aluminium
Group Co. Ltd.Zhu Panying: Ms. Zhu previously served as a Deputy Manager of the Affairs Department of Suzhou Yangyu Garment Co. Ltd.;
the Personnel Manager of Suzhou Jinlaike Electric Co. Ltd.; the Personnel Manager of Suzhou Gold Mantis Construction Decoration
Co. Ltd. a Vice President of the Business School and the Human Resources Director. She is currently the Chairman of the
Supervisory Committee of the Company the Principal of Suzhou Virtues Construction Professional Training School the Principal of
Virtues Professional Training School of Suzhou Industrial Park the Principal of Suzhou Gold Mantis Professional Training Sch ool a
Deputy Dean of Soochow University Gold Mantis School of Architecture and Urban Environment and the Chairman of the Board of
Shuicheng Ruitong Construction and Development Co. Ltd.Qian Ping: Ms. Qian was previously the Audit Supervisor of Jiangsu Tiandi Steel Structure Engineering Group Co. Ltd. the
Audit Manager of Suzhou Gold Mantis Construction Decoration Co. Ltd. the Chairman of the Supervisory Committee of Suzhou
Gold Mantis Culture Development Co. Ltd. and a Supervisor of Suzhou Gold Mantis Landscape Co. Ltd. Currently she serves a s a
Supervisor of the Company a Supervisor of Suzhou Gold Gain Investment Co. Ltd. a Supervisor of Suzhou Gold Mantis
Investment Co. Ltd. a Supervisor of Gold Mantis Construction Engineering Co. Ltd. in Suzhou Industrial Park a Supervisor of
Suzhou Jinhu Property Development Co. Ltd. a Supervisor of Suzhou Gold Mantis Charity Foundation a Supervisor of Suzhou
Gold Mantis 3D Software Co. Ltd. a Supervisor of Gold Mantis Prefabricated Construction Technology (Suzhou) Co. Ltd. a
Supervisor of Suzhou Gold Mantis Construction Investment Co. Ltd. a Supervisor of Gold Mantis Refined Decoration &
Technology (Suzhou) Co. Ltd. a Supervisor of Gold Mantis Home Decoration E-commerce (Suzhou) Co. Ltd. a Supervisor of
Gold Mantis Supply Chain Management (Suzhou) Co. Ltd. a Supervisor of Suzhou Jinnuo Commercial Factoring Co. Ltd. a
Supervisor of Suzhou LJT Intelligent Technology Co. Ltd. a Supervisor of Suzhou Nuojin Investment Co. Ltd. a Supervisor of
Suzhou Nuojin Finance Lease Co. Ltd. a Supervisor of Guangzhou Jinnuo Microfinance Co. Ltd. a Supervisor of Gold Mantis Art
Co. Ltd. and a Supervisor of Jintang Capital Holding Co. Ltd.
Zhang Jun: Mr. Zhang was previously the Manager of the Engineering Department III of Suzhou Gold Mantis Construction
Decoration Co. Ltd. and the General Manager of Suzhou Gold Mantis Landscape Co. Ltd. Currently he serves as a Supervisor of
the Company a Vice President of Suzhou Society of Landscape Architecture the Chairman of the Board and General Manager of
Suzhou Gold Mantis Landscape Co. Ltd. and an Executive Director of Jiangsu Gold Mantis Horticultural Co. Ltd.Wang Hong: Mr. Wang previously served as a Director of the Auditing Firm of Mingguang City Anhui Province; a member of
the Party Committee Organization of Nushanhu Town Mingguang City Anhui Province; the Financial Manager of Beijing Zhongshi
Dadi Advertising Co. Ltd.; an Audit Specialist of Shanghai Fosun Industrial Co. Ltd. the Chief Financial Officer of its subsidiary;
the Chief Financial Officer of Pacific Construction Group; a Director of Suzhou Meiruide Construction Decoration Co. Ltd.; a
Supervisor of Suzhou Gold Mantis Curtain Wall Co. Ltd. Currently he is a Deputy General Manager of the Company and a
Supervisor of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co. Ltd.
Dong Sheng: Mr. Dong was previously a lawyer of Jiangsu Nantong Wanfeng Law Firm the Legal Manager of Zhongnan
Holding Group Co. Ltd. and the General Manager of the Fund Settlement Center of Suzhou Gold Mantis Construction Decoration
Co. Ltd. Now he serves as a Deputy General Manager of the Company.
Cai Guohua: Mr. Cai previously served as an Audit Specialist of Jiangsu Gongzheng Accounting Firm the Financial Manager of
Suzhou Gold Mantis Construction Decoration Co. Ltd. the Chief Financial Officer of Suzhou Gold Mantis Curtain Wall Co. Ltd.and the Deputy Chief Financial Officer of Suzhou Gold Mantis Construction Decoration Co. Ltd. Currently he serves as an Deputy
General Manager and the Chief Financial Officer of the Company a Director of Suzhou Gold Mantis Construction Investment Co.Ltd. and a Director of Suzhou Industrial Park Jindejin Construction Engineering Co. Ltd.Ning Bo: Mr. Ning previously served as an Audit Specialist of Ernst & Young Hua Ming LLP a Senior Audit Manager of
Shanghai Youxin Accounting Firm (General Partnership) and the General Manger Assistant of the Company. He is currently a
Deputy General Manager and the Board Secretary of the Company.
Offices held concurrently in shareholding entities:
√ Applicable □ Not applicable
Name Shareholding entity
Office held in
the entity
Start of office
term
End of office
term
Remuneration or
allowance from the
entity or not
Zhu Ming
Suzhou Gold Mantis Enterprise (Group)
Co. Ltd.
President 11 July 2018 Yes
Note N/A
Offices held concurrently in other entities:
√ Applicable □ Not applicable
Name Other entity Office held in the entity Start of office term
End of office
term
Remuneration
or allowance
from the entity
or not
Wang
Hanlin
China Building Decoration
Association
Vice Chairman 15 June 2016 Not
Wan
Jieqiu
Soochow University
Professor and Doctoral
Supervisor
15 September 1986 Yes
Wan
Jieqiu
Nanji E-Commerce Co. Ltd. Independent Director 19 June 2018 18 June 2021 Yes
Wan
Jieqiu
Freewon China Co. Ltd. Independent Director 1 December 2017
30 November
2020
Yes
Yu
Xuehua
Soochow University
Associate Professor of
Accounting and Master
Supervisor
15 September 1993 Yes
Yu
Xuehua
Jiangsu Shagang Co. Ltd. Independent Director 2 September 2019 22 March 2023 Yes
Yu
Xuehua
Jiangsu Hengli Hydraulic Co.Ltd.Independent Director 11 September 2019
10 September
2022
Yes
Yu
Xuehua
Jiangsu Tongrun Equipment
Technology Co. Ltd.Independent Director 22 May 2018 21 May 2021 Yes
Yu General Elevator Co. Ltd. Independent Director 25 March 2019 24 March 2022 Yes
Xuehua
Zhao
Zengyao
Soochow University
Professor of the Business
School
1 September 2011 Yes
Zhao
Zengyao
Jiangsu Alcha Aluminium Co.Ltd.Independent Director 17 September 2019
16 September
2022
Yes
Zhao
Zengyao
Jiangsu Sidike New Materials
Science & Technology Co. Ltd.Independent Director 16 November 2020
15 November
2023
Yes
Zhu
Panying
Gold Mantis School of
Architecture of Soochow
University
Deputy Dean 2 June 2016 Not
Zhang Jun
Suzhou Society of Landscape
Architecture
Vice Chairman 25 March 2015 Not
Zhu
Xingquan
JiangSu Decoration Association Executive Director 1 December 2005 Not
Zhu
Xingquan
Suzhou Decoration Industry
Association
Vice Chairman 18 May 2005 Not
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who resigned in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
The Company has established a sound performance appraisal system and remuneration policies conducted regular appraisals on
its directors supervisors and senior management according to their positions and the Company's performance appraisal mechanism
and determined their remuneration based on the appraisal status. The remunerations of the Company's directors supervisors and
senior management are determined on the basis of the business results and performance appraisal indicators of the Company.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB'0000
Name Office title Gender Age Incumbent/Former
Total before-tax
remuneration
from the
Company
Remuneration
from any related
party or not
Wang Hanlin
Chairman of the
Board
Male 47 Incumbent 100
Cao Liming
Director and
General Manager
Male 42 Incumbent 68
Name Office title Gender Age Incumbent/Former
Total before-tax
remuneration
from the
Company
Remuneration
from any related
party or not
Shi Guoping
Director and
Executive Deputy
General Manager
Male 43 Incumbent 76.4
Zhu Ming Director Male 36 Incumbent Yes
Zhang Xinhong Director Male 43 Incumbent 130.75
Zhu Xingquan
Director and
Deputy General
Manager
Male 57 Incumbent 108
Wan Jieqiu
Independent
Director
Male 66 Incumbent 6
Yu Xuehua
Independent
Director
Male 58 Incumbent 6
Zhao Zengyao
Independent
Director
Male 58 Incumbent 6
Zhu Panying
Chairman of the
Supervisory
Committee
Female 49 Incumbent 80
Qian Ping Supervisor Female 54 Incumbent 55
Zhang Jun Supervisor Male 49 Incumbent 101.4
Wang Hong
Deputy General
Manager
Male 53 Incumbent 63.6
Dong Sheng
Deputy General
Manager
Male 45 Incumbent 66
Cai Guohua
Deputy General
Manager and
Chief Financial
Officer
Male 46 Incumbent 60
Ning Bo
Deputy General
Manager and
Board Secretary
Male 39 Incumbent 58
Total -- -- -- -- 985.15 --
Equity incentives granted to directors and senior management in the Reporting Period:
√ Applicable □ Not applicable
Unit: share
Name Office title Exercisa Exercised Exercise Market Opening Unlocked Restricted Grant Closing
ble
shares in
the
Reportin
g Period
shares in
the
Reporting
Period
price of
exercised
shares in
the
Reporting
Period
(RMB/shar
e)
price at the
period-end
(RMB/shar
e)
restricted
shares held
in the
current
period
shares
granted in
the current
period
price
(RMB/shar
e)
restricted
shares held
Wang
Hanlin
Chairman of
the Board
3000000 900000 0 3.99 2100000
Cao
Liming
Director and
General
Manager
3000000 900000 0 3.99 2100000
Shi
Guoping
Director and
Executive
Deputy
General
Manager
3000000 900000 0 3.99 2100000
Wang
Hong
Deputy
General
Manager
500000 150000 0 3.99 350000
Dong
Sheng
Deputy
General
Manager
500000 150000 0 3.99 350000
Cai
Guohua
Deputy
General
Manager
and Chief
Financial
Officer
500000 150000 0 3.99 350000
Ning Bo
Deputy
General
Manager
and Board
Secretary
500000 150000 0 3.99 350000
Total -- 0 0 -- -- 11000000 3300000 0 -- 7700000
Notes (if any)
On 9 June 2020 3.3 million shares held by the Company's directors and senior management and with the
restriction conditions lifted in the first lifting restriction period for the f irst grant portion of the 2018
restricted share incentive plan were listed for trading. There were 7.7 million shares remaining to be
unlocked.V Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent 9121
Number of in-service employees of principal subsidiaries 5985
Total number of in-service employees 15106
Total number of paid employees in the Reporting Period 15106
Number of retirees to whom the Company as the parent and its
principal subsidiaries need to pay retirement pensions
0
Functions
Function Employees
Production 5189
Sales 813
Technical 5494
Financial 291
Administrative 557
Budgets and final accounts 1683
Others 1079
Total 15106
Educational backgrounds
Educational background Employees
Master’s degree and above 271
Bachelor’s degree 7395
Junior college 5364
Technical secondary school and below 2076
Total 15106
2. Remuneration Policy
The Company has established a sound performance appraisal system and remuneration policies conducted regular appraisals on
its employees according to the Company's performance appraisal mechanism and determined their remuneration based on the
appraisal status.3. Training Plans
The Company has been committed to building an internal talent team that can promote transformation and upgrading and
innovative development so as to bolster the development of talents for construction decoration and its industrial ecological chain. On
the basis of unifying the Company's corporate culture values professional skills and the management ability were the main training
dimensions. Besides behavioral standards and training courses for different positions were developed according to different
categories and ranks. In terms of training implementation the Company insisted on combining hybrid training such as networking
mobile game-based and scenario-based training with mentorship and apprenticeship and creatively carried out a series of learning
programs to promote the application of learning results practices of performance improvement and organizational reform. By doing
so employees' professional skills and comprehensive literacy were continuously improved.
4. Labor Outsourcing
□ Applicable √ Not applicable
Part X Corporate Governance
I General Information of Corporate Governance
During the Reporting Period the Company continuously improved its corporate governance structure enhanced its internal
control system and continued to carry out in-depth corporate governance activities in strict accordance with the requirements in the
Company Law the Securities Law the Code of Corporate Governance for Listed Companies the Rules for Stock Listing of
Shenzhen Stock Exchange the Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies and
other relevant laws and regulations. By doing so the Company further regulated its operations and improved the level of corporate
governance.
During the Reporting Period the Company's governance was satisfactory and in compliance with the requirements of the
regulatory documents issued by the CSRC on the governance of listed companies. Details are as follows:
1. Shareholders and General Meetings
The Company formulated the Articles of Association and the Rules of Procedure for General Meetings and regulated the
procedures for convening holding voting at and proposing at general meetings in strict accordance with relevant provisions and
requirements. The Company treated all shareholders equally improve d the convenience for minority shareholders to attend the
general meetings by providing online voting in accordance with relevant regulations and separately calculated the voting results of
small and medium investors to effectively safeguard their rights and interests. During the Reporting Period the Company convened
general meetings in accordance with the provisions of the Company Law and the Articles of Association. Moreover the meetings
were witnessed by lawyers on site.
2. The Company and its Controlling Shareholder
The Company was capable of independent business activities and independent operations and was independent of the
controlling shareholder in terms of business personnel assets institutions and financial matters. The Board of Directors the
Supervisory Committee and internal institutions of the Company operated independently. The Company's major decisions were made
by the general meeting in accordance with laws. During the Reporting Period the controlling shareholder exercised its rights through
the general meeting based on its shareholding in the Company. There was no situation where the controlling shareholder appropriated
the Company's funds nor any act where the Company provided guarantees for the controlling shareholder and its subs idiaries.
3. Directors and the Board of Directors
The Company elected its directors in strict accordance with the procedures stipulated in the Company Law and the Articles of
Association of the Company. The Company's Board of Directors consisted of nine directors. There were three independent directors
on the Board including one accounting professional. During the Reporting Period the Board of Directors convened and held
meetings of the Board of Directors and general meetings of shareholders in strict accordance with the provisions of the Articles of
Association the Rules of Procedure of the Board of Directors and the Work Policy for Independent Directors and carried out the
resolutions of the general meetings. All directors attended the meetings of the Board of Directors and the general meetings in a
serious and rigorous manner performed their duties diligently and conscientiously carefully deliberated on the proposals an d
exercised their voting rights. The independent directors were able to independently perform their duties free from any influence.
4. Supervisors and the Supervisory Committee
The Company elected its supervisors in strict accordance with the procedures stipulated in the Company Law and the Articles of
Association of the Company. There were three supervisors in the Supervisory Committee including one employee supervisor. The
number and composition of the Supervisory Committee were in compliance with the requirements of laws and regulations. The
supervisors of the Company were able to conscientiously perform their duties in accordance with the requirements of the Rules of
Procedure of the Supervisory Committee be responsible to the shareholders and effectively supervise and express their opinions on
the material matters financial status related-party transactions performance of duties by directors and senior managers of the
Company so as to safeguard the legitimate rights and interests of the Company and its shareholders.
5. Internal Control
In accordance with the requirements of the Company Law the Securities Law the relevant regulations of the CSRC and the
Shenzhen Stock Exchange as well as the Basic Standards for the Internal Control of Enterprises and the supporting guidelines the
Company formulated management policies such as the Policy on Related-Party Transactions and the Policy on External Guarantees
and developed definite regulations for corporate governance information disclosure preparation of financial reports related-party
transactions project management control of monetary assets control of procurement procedures seal management and other
important aspects which provided solid institutional support for the Company to achieve operational efficiency compliance and legal
goals and goals of strategic development.
6. Stakeholders
The Company fully respected and protected the legitimate rights and interests of all stakeholders strengthened communication
and exchanges with all parties took the initiative to assume social responsibilities and strove to achieve a balance of interests
between the society shareholders employees and other parties to jointly promote the sustainable and healthy development of the
Company.
7. Information Disclosure and Transparency
The Company strictly abode by the provisions of relevant laws and regulations. The Securities Department with the Board
Secretary as the core disclosed relevant information truthfully accurately timely fairly and completely in accordance with relevant
laws. During the Reporting Period in addition to disclosing information in light of regulatory requirements the Company properly
interacted with investors through the investor interactive platform online results presentation telephone calls and reception of
investor research to respond to investors' re levant inquiries and questions in a timely and serious manner. At the same time the
Company further strengthened regular contact and active communication with regulators and actively reported the relevant matters of
the Company to regulators to ensure more standardized information disclosure of the Company. The Company has designated China
Securities Journal Shanghai Securities News STCN (www.stcn.com) Securities Daily and Cninfo (http://www.cninfo.com.cn) as its
information disclosure media to ensure that all shareholders have a fair opportunity to obtain information.The Company will continue to strengthen its corporate governance establish a long-term corporate governance mechanism
effectively protect the interests of investors and lay a solid foundation for its sustainable healthy and steady development.Indicate whether there were any significant differences between the actual situation of the corporate governance of the Company and
the regulatory documents published by the China Securities Regulatory Commission on the governance of listed companies?
□ Yes √ No
No such cases in the Reporting Period.II Independence of the Company from its Controlling Shareholder on Businesses Personnel
Assets Structure and Finance
The Company is completely independent of its controlling shareholder in terms of businesses structure personnel finance and
assets and has fully independent businesses and operations. 1. Business: The Company had a complete business system and the
ability to operate independently and directly to the market. Its business was independent of the controlling shareholder and the re was
no horizontal competition or unfair related-party transactions with the controlling shareholder and its affiliates. 2. Personnel: The
Company had a completely independent personnel and salary system. All senior management of the Company worked for the
Company and received remunerations and did not hold any positions except for directors and supervisors or receive remunerations
from the controlling shareholder and its subsidiaries. The financial personnel of the Company did not work part-time for the
controlling shareholder or its subsidiaries. 3. Assets: The Company has independent office and business premises independent land
use rights housing ownership and other assets and is equipped with production systems related to its production and operations. It
has legal ownership of equipment related to production and operations independent procurement and sales systems and supp orting
facilities. 4. Institutions: The Company has established sound internal institutions for operations and management which
independently exercised their operation and management functions. There was no institutional mix-up with the controlling
shareholder and its affiliates. 5. Finance: The Company had standardized financial and accounting policies. With independent
financial and accounting departments full-time accounting personnel and an independent accounting system it was able to make
independent financial decisions. The Company opened bank accounts independently and paid taxes independently. There was no
circumstance where the controlling shareholder or any of its affiliates occupy the Company's funds and assets without compensation.III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Meeting Type
Investor
participation ratio
Date of the meeting Disclosure date
Index to disclosed
information
The 2019 Annual
General Meeting
Annual General
Meeting
55.72% 15 May 2020 16 May 2020
Announcement No.
2020-028 disclosed
on
http://www.cninfo.co
m.cn
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
Independent
director
Total number
of board
meetings the
independent
director was
eligible to
attend
Board
meetings
attended on
site
Board
meetings
attended by
way of
telecommunica
tion
Board
meetings
attended
through a
proxy
Board
meetings the
independent
director failed
to attend
The
independent
director failed
to attend two
consecutive
board meetings
or not
General
meetings
attended
Yu Xuehua 4 4 0 0 0 Not 1
Wan Jieqiu 4 4 0 0 0 Not 1
Zhao Zengyao 4 4 0 0 0 Not 1
Explanation of why any independent director failed to attend two consecutive board meetings:
No such cases.2. Objections Raised by Independent Directors on Matters of the Company
Indicate whether any independent directors raised any objections on any matter of the Company.□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate whether any suggestions from independent directors were adopted by the Company.√ Yes □ No
Explanation on adoption/rejection of recommendations of independent directors:
During the Reporting Period the independent directors of the Company were able to perform their duties faithfully and
diligently in accordance with the relevant laws and regulations actively attended the meetings of the Board of Directors and general
meetings of the Company carefully reviewed the proposals for each meeting of the Board of Directors of the Company and carefully
and prudently put forward their independent opinions. In addition the independent directors of the Company regularly grasped the
operating updates of the Company and made valuable suggestions on the development of internal control audit work and business
development planning of the Company.
VI Duty Performance of Special Committees under the Board of Directors during the
Reporting Period
1. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee held two meetings to study and review the remuneration allocation system of the
Company and reviewed the performance appraisal mechanism and remuneration allocation plan for directors and senior
management. The committee members discussed the removal of trading restrictions on restricted shares in the first grant portion of
the Company's 2018 restricted shares believed that the conditions for the removal of restrict ions were in compliance with the
regulations and agreed with the repurchase and cancellation of the restricted shares of some resigned employees.
2. Audit Committee
The Audit Committee held six meetings to supervise and evaluate the design and implementat ion of important measures for
internal control and risk management of the Company and supervised and inspected major decision-making matters of the Company.It examined the internal audit of the Company and appropriately supervised the external audit rev iewed the work reports prepared by
the Audit Department reviewed the annual original financial statements prepared by the Company communicated with the
accountant to determine the time of the annual audit and the audit schedule and reviewed the financia l statements with the
preliminary audit opinions issued by the accountant.3. Nomination Committee
The Nomination Committee held a meeting searched for and reviewed candidates for additional directors and nominated
candidates for additional directors.
4. Strategy Committee
The Strategy Committee held a meeting to summarize the Company's business situation and put forward a plan for future
development.VII Performance of Duty by the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the Reporting Period.□ Yes √ No
The Supervisory Committee raised no objections with respect to matters of the Company.VIII Appraisal of and Incentive for Senior Management
The Company established a performance appraisal incentive and restraint mechanism which linked the remunerations of senior
management with its business results implemented a remuneration appraisal system combining the basic annual salary and year-end
performance appraisal and conducted an annual performance appraisal at the end of the year based on the completion of its an nual
operation targets and the performance of senior managements. The Company granted annual performance salaries based on the
results of the performance appraisal and rewarded and punished relevant persons. The Company has implemented the First Stock
Option Incentive Plan. The awardees of the first stock option incentive plan (senior managements and core elites/business personnel)
have exercised their first second and third stock options. The Company implemented the "Jincheng No. 1" Employee Stock
Ownership Plan to offer stock ownership incentives to eligible employees. The plan has been implemented and terminated and the
property liquidation and distribution have been completed. The Company implemented the Company's 2018 Restricted Share
Incentive Plan to grant restricted shares to awardees by means of the targeted issue of new stocks and set the performance appraisal
requirements at the corporate level and the performance appraisal requirements for individual awardees.The implementation of the stock option incentive plan restricted share incentive plan and employee stock ownership plan
effectively stimulated the enthusiasm of managers core elites and employees and played a positive role in retaining the existing
excellent managers and business elites and attracting outstanding external talents so as to better promote the long-term and stable
development of the Company.IX Internal Control Assessment Report
1. Significant Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
2. Internal Control Self-Assessment Report
Date of disclosure of the full
internal control assessment report
30 April 2021
Index of full disclosure of the
internal control assessment report
http://www.cninfo.com.cn
Ratio of the total assets of the
organizations included in the
assessment to the Company's
consolidated total assets
100.00%
Ratio of the operating revenue of
the organizations included in the
assessment to the Company's
operating revenue in the
consolidated financial statements
100.00%
Deficiency identification criteria
Category Financial report Non-financial report
Qualitative criteria
In case of the following circumstances (including but
not limited to such circumstances) it shall be deemed
that a financial report contains material deficiencies: (1)
Fraudulent conduct by directors supervisors and senior
managements of the Company; (2) Correction of a
published financial report by the Company; (3)
Significant misstatement in the financial report of the
year identified by a certified public accountant but not
identified during the Company's internal control audit;
(4) Invalid supervision of the Audit Committee and the
Audit Department over the Company's external
financial reports and internal control of financial
reports. In case of the following circumstances
(including but not limited to such circumstances) it
shall be deemed that there are "significant deficiencies"
or obvious signs of "significant deficiencies": (1)
Failure to select or apply accounting policies in
accordance with the Accounting Standards for Business
Enterprises; (2) Failure to develop anti-fraud
In case of the following circumstances it
shall be deemed that there are "material
deficiencies": (1) Lack of democratic
decision-making procedures or
unreasonable decision-making
procedures which lead to serious
mistakes and cause the Company major
property losses; (2) Serious violation of
national laws and regulations; (3) Lack
of important business management
policies or ineffective systematic
functioning of policies; (4) Untimely
remediation of the Company's material
or significant internal control
deficiencies; (5) Constant or massive
occurrence of significant internal control
deficiencies in the Company. In case of
other circumstances the deficiencies
shall be determined as important or
procedures and control measures; (3) Lack of
corresponding control mechanism for accounting
treatment of unconventional or special transactions or
failure to implement the mechanism and take
corresponding compensatory control measures; (4) One
or more deficiencies in the control of the financial
reporting at the end of the period and failure to
reasonably ensure true and accurate statements in the
financial report. General deficiencies refer to the
control deficiencies other than material and significant
deficiencies mentioned above.general deficiencies according to the
degree of influence.Quantitative criteria
If there is a reasonable possibility that a single internal
control deficiency or an internal control deficiency
together with several deficiencies may lead to
circumstances where misstatements cannot be timely
prevented or identified and remedied and relate to an
amount equivalent to or exceeding 5% of the year's
gross profit the deficiency shall be deemed as a
material deficiency. If there is a reasonable possibility
that a single internal control deficiency or an internal
control deficiency together with several deficiencies
may lead to circumstances where misstatements cannot
be timely prevented or identified and remedied and
relate to an amount equivalent to or exceeding 3% of
the year's gross profit but less than 5% of the year's
gross profit the deficiency shall be deemed as a
significant deficiency. Internal control deficiencies
which do not constitute material or significant
deficiencies shall be deemed as general deficiencies.If a deficiency has a direct or potential
negative influence that may cause direct
property losses equivalent to or
exceeding 3% of the net profit
attributable to shareholders of the listed
company the deficiency shall be deemed
as a material deficiency. If a deficiency
has a direct or potential negative
influence that may cause direct property
losses equivalent to or exceeding 1% but
less than 3% of the net profit attributable
to shareholders of the listed company the
deficiency shall be deemed as a
significant deficiency. If a deficiency has
a direct or potential negative influence
that may cause direct property losses less
than 1% of the net profit attributable to
shareholders of the listed company the
deficiency shall be deemed as a general
deficiency.Number of material deficiencies
in financial reports
0
Number of material deficiencies
in non-financial reports
0
Number of significant
deficiencies in financial reports
0
Number of significant
deficiencies in non-financial
reports
0
X CPA Firm’s Audit or Assurance Report on Internal Control
Assurance report on internal control:
Opinion paragraph
Gold Mantis maintained in all material respects effective internal control over financial reporting as of 31 December 2020 based
on the Basic Rules on Enterprise Internal Control issued by the Ministry of Finance and other applicable rules.
Assurance report on internal control
disclosed or not
Disclosed
Disclosure date 30 April 2021
Index to the disclosed report
The Assurance Report on Internal Control disclosed by the Company on
http://www.cninfo.com.cn/ dated 30 April 2021
Type of opinion Unmodified unqualified opinion
Material weakness in internal
control not related to financial
reporting
None
Indicate whether any modified opinion is expressed in the Assurance Report on Internal Control.□ Yes √ No
Indicate whether the Assurance Report on Internal Control is consistent with the internal control self-evaluation report issued by the
Company’s Board of Directors.
√ Yes □ No
Part XI Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange which were outstanding before the date of t his
Report’s approval or were due but could not be redeemed in full?
No.Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing the independent auditor’s report 28 April 2021
Name of the independent auditor RSM China
Number of the independent auditor’s report RSM China Audit Report [2021] No. 230Z0598
Names of the certified public accountants Song Wen Hong Zhiguo and Long Bing
Independent Auditor’s Report
To the Shareholders of Suzhou Gold Mantis Construction Decoration Co. Ltd.I Opinion
We have audited the financial statements of Suzhou Gold Mantis Construction Decoration Co. Ltd. (the “Company” ) which
comprise the consolidated and parent company (the Company as the parent exclusive of subsidiaries) balance sheets as at 31
December 2020 the consolidated and parent company statements of income cash flows and changes in owners’ equity for the year
then ended as well as the notes to the financial statements.In our opinion the financial statements referred to above present fairly in all material respects the consolidated and parent
company financial position of the Company at 31 December 2020 and the consolidated and parent company operating results and
cash flows for the year then ended in conformity with the Chinese Accounting Standards (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtaine d is
sufficient and appropriate to provide a basis for our opinion.III Key Audit Matters
Key audit matters are matters that based on our professional judgment are deemed most important to the audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financia l statements as a whole and
in forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Recognition of Contract Revenue
1. Description
According to the notes to the financial statements including "III. 28 Revenue Recognition Principles and Measurement
Methods" and "V. 40 Operating Revenue and Cost of Sales" Gold Mantis's revenue from construction decoration services amounte d
to RMB30117163000 accounting for 96.40% of its operating revenue. The amount of revenue from construction decoration
services as well as its ratio to the operating revenue were both material.Regarding the construction decoration services provided by it Gold Mantis recognized relevant revenue within a certain perio d
of time according to the contract performance progress. The contract performance progress was recognized by the ratio of the actual
contract cost for previous contract fulfillment to the projected total cost. The Management of Gold Mantis (hereinafter referred to as
the Management) shall reasonably estimate the total contract revenue and total contract cost of the project at the beginning to
determine the progress and constantly evaluate and revise major accounting estimations related to the Management during the
contract implementation. Therefore we regarded the recognition of contract revenue as a key audit matter.
2. Audit Response
Major audit procedures we performed for contract revenue recognition include the following:
(1) Test key internal control procedures related to contract budgeting and revenue recognition.
(2) Recalculate the progress in the project's contract ledger to verify its accuracy.
(3) Extract significant project construction contracts check the total contract revenue review key contract provisions and
perform confirmation procedures on the contract status.
(4) Examine the contract and cost budget information on which the Management's projected total revenue and projected total
cost are based and evaluate the reasonableness of the estimations made by the Management and adequacy of the basis.
(5) Select a sample to test contract costs incurred during the year.
(6) Select engineering projects conduct on-site inspections of the visual progress of the projects discuss with the engineering
management departments to confirm the progress of the projects and compare with the progress of contract recognition in the books
to analyze the reasons for differences.
(7) Carry out analytical review of the fluctuation of the contract revenue cost and gross margin of major projects.
(II) Recoverability of Accounts Receivable
1. Description
According to the notes to the financial statements including "III. 10 Financial Instruments" and "V. 4 Accounts Receivable" as
at 31 December 2020 the gross amount of accounts receivable in the consolidated financial statements of Gold Mantis was
RMB15470608800 and the total amount of allowances for doubtful accounts receivable was RMB1952818800 in total. The
Company set aside loss allowances for accounts receivable according to the lifetime expected credit losses divided accounts
receivable into several groups by their risk characteristics and calculated the expected credit losses based on the groups. Since this
matter related to the major accounting estimations and judgments applied by the Management and the recoverability of accounts
receivable were vital to the financial statements therefore we regarded the recoverability of accounts receivable as a key audit
matter.
2. Audit Response
Major audit procedures we performed for recoverability of accounts receivable include the following:
(1) Learn about the Management's key internal control measures for financial reporting related to credit control recovery of
accounts and assessment of the impairment allowances for receivables and evaluate the design and operating effectiveness of these
internal control measures.
(2) Assess the accuracy of the methods inputs and assumptions used by the Management in calculating the impairment
allowances for receivables and review the adequacy of the allowances for doubtful accounts.
(3) Obtain and examine contracts of major customers to understand the contractual settlement policies and conduct comparative
analysis of them and the credit policies actually implemented.
(4) Review the Management's considerations and objective evidence related to the assessment of the recoverability of accounts
receivable.
(5) Retrieve the industrial and commercial records or inquire the industrial and commercial information of major customers in
the national enterprise credit information publicity system examine the aging of accounts receivable and repayment histories and
assess whether the recoverability of accounts receivable is affected by the financial problems of the counterparties.
(6) Check the litigation situation within the Reporting Period and learn about the recovery status of corresponding accounts
receivable and the allowances for doubtful accounts.
(7) Evaluate the reasonableness of the Management's establishment of allowances for doubtful accounts in relation to the
accounts receivable for which the Management set aside the allowances for doubtful accounts according to the groups by credit risk
characteristics and give consideration to the credit risk characteristics and aging analysis during the evaluation.
(8) Implement confirmation procedures and post-recovery checks to evaluate the reasonableness of the Management's
establishment of allowances for doubtful accounts.IV Other Information
The Company’s management is responsible for the other information. The other information comprises all of the information
included in the Company’s 2020 Annual Report other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other informat ion we are
required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in accordance
with CAS and for designing implementing and maintaining such internal control as the management determines is necessary to
enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a going
concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the
management either intends to liquidate the Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on the effectiveness of internal controls.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and based on the audit
evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future
events or conditions may cause the Company to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Company to express an opinion on the financial statements. We are responsible for the direction supervision and performa nce of
the Company audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit
and significant audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstanc es we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Suzhou Gold Mantis Construction Decoration Co. Ltd.
31 December 2020
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets：
Monetary assets 6372631845.72 6077758993.30
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 2172086741.05 1694650654.74
Derivative financial assets
Notes receivable 8834516728.65 4365558567.45
Accounts receivable 13517789956.57 22003095138.84
Receivables financing 275822920.18 261530861.26
Prepayments 184622237.74 287524499.91
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 238574992.82 248803300.64
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 53841882.04 101344129.28
Contract assets 8776903224.25
Assets held for sale
Current portion of non-current
assets
89386364.69 31381819.35
Other current assets 113007717.52 116384039.46
Total current assets 40629184611.23 35188032004.23
Non-current assets：
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 1528021000.84 1438636412.30
Long-term equity investments 225124.06 22838423.66
Investments in other equity
instruments
Other non-current financial assets 512022000.00 444022000.00
Investment property 135295908.94 78250561.70
Fixed assets 892169838.74 910175452.03
Construction in progress 41215785.57 71905579.25
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 89542508.36 109105821.09
Development costs
Goodwill 408055407.05 435818777.74
Long-term prepaid expense 49904354.32 157443245.55
Deferred income tax assets 438241669.12 415401109.41
Other non-current assets 279435220.04 201762268.01
Total non-current assets 4374128817.04 4285359650.74
Total assets 45003313428.27 39473391654.97
Current liabilities：
Short-term borrowings 714363172.85 875691128.75
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 4871222687.68 4602520476.92
Accounts payable 17046906908.50 13279769499.13
Advances from customers 790724499.17
Contract liabilities 818343554.80
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 1700769141.23 1748073732.96
Taxes and levies payable 216975877.33 256606598.88
Other payables 299482436.62 593947128.96
Including: Interest payable
Dividends payable 10574000.00 6620000.00
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
51083934.28 22000000.00
Other current liabilities 1297749046.76 1062569828.91
Total current liabilities 27016896760.05 23231902893.68
Non-current liabilities：
Insurance contract reserve
Long-term borrowings 836918353.34 838561722.30
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 4163618.41 2931338.35
Other non-current liabilities
Total non-current liabilities 841081971.75 841493060.65
Total liabilities 27857978731.80 24073395954.33
Owners’ equity：
Share capital 2683358689.00 2676408689.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 368723316.20 342175389.87
Less: Treasury shares 121595650.00 132069000.00
Other comprehensive income -7462575.66 57504092.23
Specific reserve
Surplus reserves 1360431738.20 1358670354.99
General reserve
Retained earnings 12725196506.07 10853403316.80
Total equity attributable to owners of
the Company as the parent
17008652023.81 15156092842.89
Non-controlling interests 136682672.66 243902857.75
Total owners’ equity 17145334696.47 15399995700.64
Total liabilities and owners’ equity 45003313428.27 39473391654.97
Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets：
Monetary assets 4157896016.45 3236414236.21
Held-for-trading financial assets 891634191.47 1177233688.22
Derivative financial assets
Notes receivable 5603812080.85 2720966717.92
Accounts receivable 9578054598.29 15070584579.15
Receivables financing 211831423.35 227611894.42
Prepayments 109893040.95 67179176.34
Other receivables 335745131.01 369029544.53
Including: Interest receivable
Dividends receivable 40000000.00 40000000.00
Inventories 465048.33 2108652.15
Contract assets 5258632942.40
Assets held for sale
Current portion of non-current
assets
Other current assets 256087.10 141935.84
Total current assets 26148220560.20 22871270424.78
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2504132432.26 2450189252.52
Investments in other equity
instruments
Other non-current financial assets 512022000.00 444022000.00
Investment property 113286785.38 92392476.23
Fixed assets 720890710.89 725719586.11
Construction in progress 40535876.61 50987676.95
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 28715614.95 31263899.40
Development costs
Goodwill
Long-term prepaid expense 33042253.63 36115310.40
Deferred income tax assets 292343099.89 269961767.22
Other non-current assets 112297729.01 90447503.15
Total non-current assets 4357266502.62 4191099471.98
Total assets 30505487062.82 27062369896.76
Current liabilities：
Short-term borrowings 92385970.13 454870134.35
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 2600907620.27 2524818850.29
Accounts payable 10747889172.00 8227541063.77
Advances from customers 325775470.52
Contract liabilities 449649019.21
Employee benefits payable 1300435009.72 1377238718.10
Taxes and levies payable 111246421.74 94928342.32
Other payables 150784450.66 489198564.99
Including: Interest payable
Dividends payable 10574000.00 6620000.00
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 949026505.13 810122476.37
Total current liabilities 16402324168.86 14304493620.71
Non-current liabilities：
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 245128.72 185053.23
Other non-current liabilities
Total non-current liabilities 245128.72 185053.23
Total liabilities 16402569297.58 14304678673.94
Owners’ equity：
Share capital 2683358689.00 2676408689.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 464113394.70 437549701.78
Less: Treasury shares 121595650.00 132069000.00
Other comprehensive income
Specific reserve
Surplus reserves 1360431738.20 1358670354.99
Retained earnings 9716609593.34 8417131477.05
Total owners’ equity 14102917765.24 12757691222.82
Total liabilities and owners’ equity 30505487062.82 27062369896.76
3. Consolidated Income Statement
Unit: RMB
Item 2020 2019
1. Revenues 31243227802.04 30834654530.30
Including: Operating revenue 31243227802.04 30834654530.30
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 28234372648.30 27926731277.92
Including: Cost of sales 26058435143.23 25164792617.65
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 108178512.22 94606201.19
Selling expense 375964501.30 650794185.74
Administrative expense 604846088.47 1001785370.49
R&D expense 955782334.18 879866123.50
Finance costs 131166068.90 134886779.35
Including: Interest expense 145524591.79 142341566.80
Interest income 41474553.83 26670537.36
Add: Other income 54684095.82 19660084.94
Return on investment (“－” for
loss)
37648383.31 33199676.51
Including: Share of profit or
loss of joint ventures and associates
-9556696.62 -6162676.00
Income from the
derecognition of financial assets at
amortized cost
Exchange gain (“－” for loss)
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
(“－” for loss)
-723913.69 -59789345.26
Credit impairment loss (“－”
for loss)
-452355161.86 -205096377.78
Asset impairment loss (“－” for
loss)
66073084.77 -3651.14
Asset disposal income (“－”
for loss)
114042.29 -1219850.07
3. Operating profit (“－” for loss) 2714295684.38 2694673789.58
Add: Non-operating income 285660.49 4950546.95
Less: Non-operating expense 4298740.33 4533450.34
4. Gross profit (“－” for gross loss) 2710282604.54 2695090886.19
Less: Income tax expense 369673831.88 434386321.47
5. Net profit (“－” for net loss) 2340608772.66 2260704564.72
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“－” for net loss)
2340608772.66 2260704564.72
5.1.2 Net profit from discontinued
operations (“－” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
owners of the Company as the parent
2373915319.52 2349395605.96
5.2.2 Net profit attributable to
non-controlling interests
-33306546.86 -88691041.24
6. Other comprehensive income net of
tax
-67210472.64 19359395.45
Other comprehensive income net of
tax attributable to owners of the
Company as the parent
-64966667.89 23261261.16
6.1 Other comprehensive income
that will not be reclassified to profit or
loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair
value of investments in other equity
instruments
6.1.4 Changes in the fair
value arising from changes in own credit
risk
6.1.5 Others
6.2 Other comprehensive income
that will be reclassified to profit or loss
-64966667.89 23261261.16
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair
value of other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising
from the translation of foreign
currency-denominated financial
statements
-64966667.89 23261261.16
6.2.7 Others
Other comprehensive income net of
tax attributable to non-controlling
interests
-2243804.75 -3901865.71
7. Total comprehensive income 2273398300.02 2280063960.17
Total comprehensive income
attributable to owners of the Company as
the parent
2308948651.63 2372656867.12
Total comprehensive income
attributable to non-controlling interests
-35550351.61 -92592906.95
8. Earnings per share：
8.1 Basic earnings per share 0.88 0.88
8.2 Diluted earnings per share 0.89 0.88
Where business combinations involving entities under common control occurred in the current period the net profit achieved by the
acquirees before the combinations was RMB with the amount for last year being RMB .Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Operating revenue 19488441946.54 18407435161.21
Less: Cost of sales 16086748755.05 14958708586.59
Taxes and levies 70254919.85 55820655.17
Selling expense 215311596.91 213708147.95
Administrative expense 207882651.82 311841065.34
R&D expense 630431222.68 581507156.73
Finance costs 21814116.30 30275095.10
Including: Interest expense 39834849.73 41481410.00
Interest income 25703322.50 12746149.65
Add: Other income 7225891.98 10536596.42
Return on investment (“－”
for loss)
22017920.22 144357442.83
Including: Share of profit or
loss of joint ventures and associates
-2390420.50 -4226587.96
Income from the
derecognition of financial assets at
amortized cost (“－” for loss)
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
(“－” for loss)
400503.25 -62766311.78
Credit impairment loss (“－”
for loss)
-274434880.37 -99321459.92
Asset impairment loss (“－”
for loss)
60930272.68
Asset disposal income (“－”
for loss)
1244.46 -137414.85
2. Operating profit (“－” for loss) 2072139636.15 2248243307.03
Add: Non-operating income 17608.54 1793615.46
Less: Non-operating expense 3460122.37 3544219.28
3. Gross profit (“－” for gross loss) 2068697122.32 2246492703.21
Less: Income tax expense 248609717.13 271729104.10
4. Net profit (“－” for net loss) 1820087405.19 1974763599.11
4.1 Net profit from continuing
operations (“－” for net loss)
1820087405.19 1974763599.11
4.2 Net profit from discontinued
operations (“－” for net loss)
5. Other comprehensive income net of
tax
5.1 Other comprehensive income
that will not be reclassified to profit or
loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
5.1.3 Changes in the fair
value of investments in other equity
instruments
5.1.4 Changes in the fair
value arising from changes in own
credit risk
5.1.5 Others
5.2 Other comprehensive income
that will be reclassified to profit or loss
5.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
5.2.2 Changes in the fair
value of other debt investments
5.2.3 Other comprehensive
income arising from the reclassification
of financial assets
5.2.4 Credit impairment
allowance for other debt investments
5.2.5 Reserve for cash flow
hedges
5.2.6 Differences arising
from the translation of foreign
currency-denominated financial
statements
5.2.7 Others
6. Total comprehensive income 1820087405.19 1974763599.11
7. Earnings per share：
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services
28786537582.19 28351807710.20
Net increase in customer deposits
and deposits from other banks and
financial institutions
Net increase in borrowings from
the central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest fees and commissions
received
Net increase in loans from other
banks and financial institutions
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading
of securities
Tax and levy rebates 1284072.45
Cash generated from other
operating activities
93168696.84 309362695.48
Subtotal of cash generated from
operating activities
28880990351.48 28661170405.68
Payments for goods and services 22055723564.18 21861009207.12
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and other banks and
financial institutions
Payments for claims on original
insurance contracts
Net increase in loans to other
banks and financial institutions
Interest fees and commissions
paid
Policy dividends paid
Cash paid to and for employees 3079182809.78 3307568892.12
Taxes and levies paid 1437637805.83 1272742487.76
Cash used in other operating
activities
531330929.53 464629835.97
Subtotal of cash used in operating
activities
27103875109.32 26905950422.97
Net cash generated from/used in
operating activities
1777115242.16 1755219982.71
2. Cash flows from investing activities:
Proceeds from disinvestment 10750380711.98 15990497000.00
Return on investment 36709817.00 71824868.85
Net proceeds from the disposal of
fixed assets intangible assets and other
long-term assets
10427451.26 15604661.15
Net proceeds from the disposal of
subsidiaries and other business units
18588895.83 6979638.34
Cash generated from other 40803606.39 28232114.75
investing activities
Subtotal of cash generated from
investing activities
10856910482.46 16113138283.09
Payments for the acquisition and
construction of fixed assets intangible
assets and other long-term assets
156882830.00 234621611.98
Payments for investments 11272570711.98 14508833700.00
Net increase in pledged loans
granted
Net payments for the acquisition of
subsidiaries and other business units
1155000.00 1155000.00
Cash used in other investing
activities
Subtotal of cash used in investing
activities
11430608541.98 14744610311.98
Net cash generated from/used in
investing activities
-573698059.52 1368527971.11
3. Cash flows from financing activities:
Capital contributions received 12097000.00
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings received 1152731644.19 1513451675.11
Cash generated from other
financing activities
8947438.58
Subtotal of cash generated from
financing activities
1173776082.77 1513451675.11
Repayment of borrowings 1286050226.89 960980251.99
Interest and dividends paid 684834689.56 675762948.06
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
25511610.47
Subtotal of cash used in financing
activities
1970884916.45 1662254810.52
Net cash generated from/used in
financing activities
-797108833.68 -148803135.41
4. Effect of foreign exchange rate
changes on cash and cash equivalents
-103159005.40 7342160.41
5. Net increase in cash and cash
equivalents
303149343.56 2982286978.82
Add: Cash and cash equivalents
beginning of the period
6051660327.62 3069373348.80
6. Cash and cash equivalents end of the
period
6354809671.18 6051660327.62
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services
18436592629.73 16825060500.01
Tax and levy rebates 1284072.45
Cash generated from other
operating activities
43713301.52 321241968.44
Subtotal of cash generated from
operating activities
18481590003.70 17146302468.45
Payments for goods and services 13571164135.69 12923688852.58
Cash paid to and for employees 1913288537.87 1704660273.86
Taxes and levies paid 899383766.94 721116299.74
Cash used in other operating
activities
381796864.00 108175930.61
Subtotal of cash used in operating
activities
16765633304.50 15457641356.79
Net cash generated from/used in
operating activities
1715956699.20 1688661111.66
2. Cash flows from investing activities:
Proceeds from disinvestment 6917500000.00 9528608000.00
Return on investment 20818419.64 113021049.74
Net proceeds from the disposal of
fixed assets intangible assets and other
long-term assets
447821.68 3008052.09
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
investing activities
24713108.45 15385633.48
Subtotal of cash generated from
investing activities
6963479349.77 9660022735.31
Payments for the acquisition and
construction of fixed assets intangible
assets and other long-term assets
80448492.27 88674858.35
Payments for investments 6748098222.33 9208549753.60
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
activities
6828546714.60 9297224611.95
Net cash generated from/used in
investing activities
134932635.17 362798123.36
3. Cash flows from financing activities:
Capital contributions received 12097000.00
Borrowings received 396206771.20 454690696.85
Cash generated from other
financing activities
Subtotal of cash generated from
financing activities
408303771.20 454690696.85
Repayment of borrowings 758511497.92 50172297.61
Interest and dividends paid 577292481.85 572560553.00
Cash used in other financing
activities
16564171.89
Subtotal of cash used in financing
activities
1352368151.66 622732850.61
Net cash generated from/used in
financing activities
-944064380.46 -168042153.76
4. Effect of foreign exchange rate
changes on cash and cash equivalents
-2897559.61 3663831.23
5. Net increase in cash and cash
equivalents
903927394.30 1887080912.49
Add: Cash and cash equivalents
beginning of the period
3236146447.61 1349065535.12
6. Cash and cash equivalents end of the
period
4140073841.91 3236146447.61
7. Consolidated Statements of Changes in Owners’ Equity
2020
Unit: RMB
Item
2020
Equity attributable to owners of the Company as the parent
Non-c
ontroll
ing
interes
ts
Total
owners
’
equity
Share
capita
l
Other equity
instruments
Capital
reserve
s
Less:
Treasu
ry
shares
Other
compr
ehensi
ve
incom
e
Specifi
c
reserve
Surplu
s
reserve
s
Genera
l
reserve
Retain
ed
earnin
gs
Others
Subtot
al
Prefe
rence
share
s
Perpe
tual
bond
s
Other
s
1. Balance as at
the end of the
prior year
2676
408
689.0
0
34217
5389.
87
13206
9000.
00
57504
092.2
3
1358
67035
4.99
10853
4033
16.80
15156
0928
42.89
24390
2857.
75
15399
9957
00.64
Add:
Adjustments for
changes in
accounting
policies
1761
383.21
34339
607.5
5
36100
990.7
6
3075
706.90
39176
697.6
6
Adjustments
for correction of
previous errors
Adjustments
for business
combinations
involving
entities under
common control
Other
adjustments
2. Balance as at
the beginning of
the year
2676
408
689.0
0
34217
5389.
87
13206
9000.
00
57504
092.2
3
1360
43173
8.20
10887
7429
24.35
15192
1938
33.65
24697
8564.
65
15439
1723
98.30
3.
Increase/decreas
e in the period
(“-” for
decrease)
6950
000.
00
26547
926.3
3
-1047
3350.
00
-6496
6667.
89
1837
45358
1.72
1816
45819
0.16
-1102
95891
.99
1706
16229
8.17
3.1 Total -6496 2373 2308 -3555 2273
comprehensive
income
6667.
89
91531
9.52
94865
1.63
0351.
61
39830
0.02
3.2 Capital
increased and
reduced by
owners
6950
000.
00
26547
926.3
3
-1047
3350.
00
43971
276.3
3
-7474
5540.
38
-3077
4264.
05
3.2.1
Ordinary shares
increased by
owners
6950
000.
00
6950
000.00
-7474
5540.
38
-6779
5540.
38
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
recognized in
owners’ equity
26563
692.9
2
32080
000.0
0
-5516
307.08
-5516
307.08
3.2.4
Others
-1576
6.59
-4255
3350.
00
42537
583.4
1
42537
583.4
1
3.3 Profit
distribution
-5364
61737
.80
-5364
61737
.80
-5364
61737
.80
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
to owners (or
shareholders)
-5364
61737
.80
-5364
61737
.80
-5364
61737
.80
3.3.4 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus reserves
used to offset
loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Others
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
period
2683
358
689.0
0
36872
3316.
20
12159
5650.
00
-7462
575.66
1360
43173
8.20
12725
1965
06.07
17008
6520
23.81
13668
2672.
66
17145
3346
96.47
2019
Unit: RMB
Item
2019
Equity attributable to owners of the Company as the parent
Non-co
ntrollin
g
interest
s
Total
owners’
equity
Share
capita
l
Other equity
instruments
Capital
reserve
s
Less:
Treasu
ry
shares
Other
compr
ehensi
ve
incom
e
Specifi
c
reserve
Surplu
s
reserve
s
Genera
l
reserve
Retain
ed
earnin
gs
Others
Subtot
al
Prefe
rence
share
s
Perp
etual
bond
s
Other
s
1. Balance as at
the end of the
prior year
2676
408
689.0
0
25668
3499.
94
13206
9000.
00
34242
831.0
7
1161
19399
5.08
9236
76580
8.55
13233
2258
23.64
372327
191.88
13605
553015
.52
Add:
Adjustments
for changes in
accounting
policies
Adjustments
for correction
of previous
errors
Adjustments
for business
combinations
involving
entities under
common
control
Other
adjustments
2. Balance as at
the beginning
of the year
2676
408
689.0
0
25668
3499.
94
13206
9000.
00
34242
831.0
7
1161
19399
5.08
9236
76580
8.55
13233
2258
23.64
372327
191.88
13605
553015
.52
3.
Increase/decrea
se in the period
(“-” for
decrease)
85491
889.9
3
23261
261.1
6
19747
6359.
91
1616
63750
8.25
1922
86701
9.25
-12842
4334.1
3
17944
42685.
12
3.1 Total
comprehensive
income
23261
261.1
6
2349
39560
5.96
2372
65686
7.12
-92592
906.95
22800
63960.
17
3.2 Capital
increased and
reduced by
owners
84466
463.7
8
84466
463.7
8
-35831
427.18
48635
036.60
3.2.1
Ordinary shares
increased by
owners
-35831
427.18
-35831
427.18
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
recognized in
owners’ equity
84466
463.7
8
84466
463.7
8
84466
463.78
3.2.4
Others
3.3 Profit
distribution
1025
426.15
19747
6359.
91
-7327
58097
.71
-5342
56311
.65
-53425
6311.6
5
3.3.1
Appropriation
to surplus
reserves
19747
6359.
91
-1974
76359
.91
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
to owners (or
shareholders)
-5352
81737
.80
-5352
81737
.80
-53528
1737.8
0
3.3.4
Other
1025
426.15
1025
426.15
10254
26.15
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Surplus
reserves used to
offset loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Others
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
period
2676
408
689.0
0
34217
5389.
87
13206
9000.
00
57504
092.2
3
1358
67035
4.99
10853
4033
16.80
15156
0928
42.89
243902
857.75
15399
995700
.64
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2020
Unit: RMB
Item
2020
Share
capital
Other equity
instruments
Capital
reserves
Less:
Treasury
shares
Other
compreh
ensive
income
Specific
reserve
Surplus
reserves
Retained
earnings
Others
Total
owners’
equity
Prefere
nce
shares
Perpet
ual
bonds
Others
1. Balance as at
the end of the
prior year
26764
08689.
00
437549
701.78
132069
000.00
135867
0354.99
841713
1477.05
1275769
1222.82
Add:
Adjustments for
changes in
accounting
policies
176138
3.21
158524
48.90
1761383
2.11
Adjustments
for correction of
previous errors
Other
adjustments
2. Balance as at
the beginning of
the year
26764
08689.
00
437549
701.78
132069
000.00
136043
1738.20
843298
3925.95
1277530
5054.93
3. Increase/
decrease in the
period (“-” for
decrease)
69500
00.00
265636
92.92
-10473
350.00
128362
5667.39
1327612
710.31
3.1 Total
comprehensive
income
182008
7405.19
1820087
405.19
3.2 Capital
increased and
reduced by
owners
69500
00.00
265636
92.92
-10473
350.00
4398704
2.92
3.2.1
Ordinary shares
increased by
owners
69500
00.00
6950000.
00
3.2.2
Capital increased
by holders of
other equity
instruments
3.2.3
Share-based
payments
recognized in
owners’ equity
265636
92.92
320800
00.00
-5516307
.08
3.2.4 Other
-42553
350.00
4255335
0.00
3.3 Profit
distribution
-536461
737.80
-5364617
37.80
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
owners (or
shareholders)
-536461
737.80
-5364617
37.80
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus reserves
used to offset
loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income
transferred to
retained earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
period
26833
58689.
00
464113
394.70
121595
650.00
136043
1738.20
971660
9593.34
1410291
7765.24
2019
Unit: RMB
Item
2019
Share
capital
Other equity
instruments
Capital
reserves
Less:
Treasur
y shares
Other
compre
hensive
income
Specific
reserve
Surplus
reserves
Retained
earnings
Others
Total
owners’
equity
Prefer
ence
shares
Perpet
ual
bonds
Others
1. Balance as at
the end of the
prior year
2676
40868
9.00
353083
238.00
132069
000.00
11611
93995.
08
7175125
975.65
11233742
897.73
Add:
Adjustments for
changes in
accounting
policies
Adjustments
for correction
of previous
errors
Other
adjustments
2. Balance as at 2676 353083 132069 11611 7175125 11233742
the beginning
of the year
40868
9.00
238.00 000.00 93995.
08
975.65 897.73
3. Increase/
decrease in the
period (“-” for
decrease)
84466
463.78
197476
359.91
1242005
501.40
15239483
25.09
3.1 Total
comprehensive
income
1974763
599.11
19747635
99.11
3.2 Capital
increased and
reduced by
owners
84466
463.78
84466463.
78
3.2.1
Ordinary shares
increased by
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
recognized in
owners’ equity
84466
463.78
84466463.
78
3.2.4 Other
3.3 Profit
distribution
197476
359.91
-732758
097.71
-53528173
7.80
3.3.1
Appropriation
to surplus
reserves
197476
359.91
-197476
359.91
3.3.2
Appropriation
to owners (or
shareholders)
-535281
737.80
-53528173
7.80
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus
reserves used to
offset loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
period
2676
40868
9.00
437549
701.78
132069
000.00
13586
70354.
99
8417131
477.05
12757691
222.82
III Basic Information of the Company
1. Company Profile
Suzhou Gold Mantis Construction Decoration Co. Ltd. (hereinafter referred to as the
“Company”) which was changed from the former Suzhou Gold Mantis Construction Decoration
Limited was established as a foreign-invested company limited by shares with a registered capital
of RMB70 million under the approval of SH.Z.Y.P. [2004] No. 242 and the Approval Certificate
SH.W.Z.Z.SH.Z. [2004] No. 0082 of the Ministry of Commerce of the People's Republic of China.The Company went through the industrial and commercial registration at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the law on 30 April 2004. With the
approval granted by the China Securities Regulatory Commission under Document ZH.J.F.X.Z.
[2006] No. 100 the Company publicly issued 24 million ordinary shares on 2 November 2006
increasing its registered capital to RMB94 million after the issuance. On 20 November 2006 the
Company's stock was listed on the Shenzhen Stock Exchange under the stock code "002081" and
the stock name "Gold Mantis".In May 2008 the Company implemented a profit distribution plan for 2007 transferring 5 shares
for every 10 shares of Capital reserves to all shareholders increasing its registered capital to RMB141
million.
In April 2009 the Company implemented a profit distribution plan for 2008 transferring 5
shares for every 10 shares of Capital reserves to all shareholders increasing its registered capital to
RMB211.5 million.
In November 2009 the Company increased its registered capital by RMB1296000 to
RMB212796000 by exercising the first phase of share options of the first share option incentive plan
by 18 share option awardees including Ni Lin Yang Zhen and Yan Duolin under the First Share
Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co. Ltd.
In April 2010 the Company implemented a profit distribution plan for 2009 giving all
shareholders 5 shares for every 10 shares of Retained earnings increasing its registered capital to
RMB319194000.
In March 2011 the Company implemented a profit distribution plan for 2010 giving all
shareholders 5 shares for every 10 shares of Retained earnings increasing its registered capital to
RMB478791000.
In June 2011 the Company increased its registered capital by RMB2612250 to
RMB481403250 by exercising the second phase of share options of the first share option incentive
plan by 15 share option awardees including Ni Lin Yang Zhen and Yan Duolin under the First
Share Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co. Ltd.In November 2011 in accordance with the resolutions of the 1st Extraordinary General Meeting
and the 2nd Extraordinary General Meeting of 2011 and as approved by the China Securities
Regulatory Commission's Approval of the Non-public Offering of Shares of Suzhou Gold Mantis
Construction Decoration Co. Ltd. (ZH.J.X.K. [2011] No. 1388) the Company made a non-public
offering of RMB36843800 ordinary shares increasing its registered capital to RMB518247050.In May 2012 the Company implemented a profit distribution plan for 2011 transferring 5 shares
for every 10 shares of capital reserves to all shareholders increasing its registered capital to
RMB777370575.
In December 2012 the Company increased its registered capital by RMB4100378 to
RMB781470953 by independently exercising the third phase of share options of the first share
option incentive plan by 12 share option awardees including Ni Lin Yang Zhen and Yan Duolin
under the First Share Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co.Ltd.In March 2013 the Company increased its registered capital by RMB1063371 to
RMB782534324 by independently exercising the third phase of share options of the first share
option incentive plan by 5 share option awardees including Ni Lin under the First Share Option
Incentive Plan of Suzhou Gold Mantis Construction Decoration Co. Ltd.In May 2013 the Company implemented a profit distribution plan for 2012 transferring 5 shares
for every 10 shares of Capital reserves to all shareholders increasing its registered capital to
RMB1173801486.
In September 2013 the Company increased its registered capital by RMB1002376 to
RMB1174803862 by independently exercising the third phase of share options of the first share
option incentive plan by 3 share option awardees including Zhu Xingquan under the First Share
Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co. Ltd.In June 2014 the Company implemented a profit distribution plan for 2013 transferring 5 shares
for every 10 shares of Capital reserves to all shareholders whereby increasing the registered capital to
RMB1762205793.
In June 2016 the Company implemented a profit distribution plan for 2015 giving all
shareholders 5 shares for every 10 shares of Retained earnings whereby increasing the registered
capital to RMB2643308689.
In December 2018 in accordance with the Proposal on the Proposal on the Company's 2018
Restricted Share Incentive Plan (Draft) and Its Summary reviewed and approved at the 1st
Extraordinary General Meeting of the Company in 2018 and the resolution of the 13th Extraordinary
Meeting of the 5th Board of Directors restricted shares were granted to 32 restricted share awardees
including Wang Hanlin Cao Liming and Shi Guoping increasing its registered capital by RMB33.1
million to RMB2676408689.In January 2020 in accordance with the Proposal on the Company's 2018 Restricted Share
Incentive Plan (Draft) and Its Summary reviewed and approved at the 1st Extraordinary General
Meeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board
of Directors restricted shares were granted to 14 restricted share awardees including Wang Zhenlong
and Gao Hongqiang increasing its registered capital by RMB8 million to RMB2684408689.In May 2020 in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Repo and Cancellation of Part of Restricted Shares of the Company which were
reviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020 as Yang Peng and
Xie Jinan the original awardees had left the Company the Company repurchased and canceled 1.05
million restricted shares granted to them but not yet unlocked reducing its registered capital by
RMB1.05 million. After the completion of the repurchase and cancellation its registered capital was
changed to RMB2683358689.The Domicile of the Company: Within the private industrial zone Suzhou Industrial Park
Jiangsu Province. Legal representative: Wang Hanlin.The Company's business scope: architectural engineering procurement construction (EPC);
design and construction of interior and exterior decoration projects of various buildings; installation
of utilities and electrical equipment for public and civil construction projects; consulting services
technology development and technology transfer for construction decoration design; furniture
manufacturing. Design and construction of indoor and outdoor artworks for various buildings;
design and construction of soft decoration accessories; design and construction of environmental
way-finding systems; design production manufacturing installation and construction of curtain
wall projects for various buildings; processing manufacturing and construction of metal doors and
windows; wooden products production; building stone processing. Manufacturing and installation
of mechanical and electrical equipment installation projects; design and construction of urban
landscaping projects; design and construction of ancient-style landscaping; design and construction
of firefighting facilities projects; civil and public building engineering design; steel-structure
engineering and construction; light steel-structure engineering design; urban and road lighting
engineering; sales: construction materials; contracting of overseas construction decoration and
curtain wall engineering as well as domestic projects put out to international tender; contracting of
the survey consulting design and supervision projects of the aforesaid overseas projects; export of
the equipment and materials required for the aforesaid overseas projects; dispatch of leased
employees needed to implement the aforesaid overseas projects. (Business activities that require
approval in accordance with laws shall be subject to approval by relevant authorities.)
Date of approval of financial report: The Financial Statement was approved to be reported by
the resolution of the Board of Directors of the Company on 28 April 2021.
2. Scope of the Consolidated Financial Statements
(1) Subsidiaries Included in the Consolidated Financial Statements in the Current Period
Serial No. Full name of subsidiary Abbr. of subsidiary
The Company’s interest
(%)
Direct Indirect
1 Suzhou Meiruide Construction Decoration
Co. Ltd.
Meiruide 100.00 —
2 Suzhou Meiruide Construction Materials
Co. Ltd.
Meiruide Materials — 100.00
3 Suzhou Industrial Park Gold Mantis
Furniture Design and Manufacturing Co.
Ltd.Suzhou Furniture 100.00 —
4 Suzhou Gold Mantis Curtain Wall Co. Ltd. Gold Mantis Curtain Wall 100.00 —
5 Qidong Gold Mantis Curtain Wall Co. Ltd. Qidong Curtain Wall — 100.00
6 Suzhou Gold Mantis Landscape Co. Ltd. Gold Mantis Landscape 100.00 —
7 Jiangsu Gold Mantis Horticultural Co. Ltd. Gold Mantis Horticultural — 100.00
8 Datong Gold Mantis Landscape Co. Ltd. Datong Gold Mantis — 100.00
9 Jining Economic Development Zone Gold Jining Gold Mantis — 100.00
Mantis Landscape Engineering Co. Ltd.
10 Suzhou Gold Mantis Construction
Investment Co. Ltd.
Construction Investment 100.00 —
11 Liaoning Gold Mantis Construction
Decoration Co. Ltd.
Liaoning Gold Mantis 100.00 —
12 Singapore Gold Mantis Pte. Ltd. Singapore Gold Mantis 100.00 —
13 HBA Holdings Pte. Ltd. *1 HBA — 86.62
14 Gold Mantis (International) Construction
Decoration Limited
Gold Mantis International 100.00 —
15 Russia Gold Mantis Construction Decoration
Co. Ltd.
Russia Gold Mantis — 100.00
16 JTL Fit Out Middle East L.L.C. JTL Fit Out Middle East — 100.00
17 Gold Mantis Construction Decoration
(CNMI) LLC
Saipan Gold Mantis — 100.00
18 Gold Mantis Building Decoration
(Cambodia) Co. Ltd.
Cambodia Gold Mantis — 100.00
19 Gold Mantis International Development Pte.
Ltd.International
Development
— 100.00
20 Gold Mantis (Vietnam) Construction
Company Limited
Gold Mantis (Vietnam) — 100.00
21 Gold Mantis (HK) Construction Decoration
Limited
Gold Mantis (HK) — 100.00
22 Gold Mantis (Lanka) Construction (Private)
Limited
Gold Mantis (Lanka) — 100.00
23 Gold Mantis Prefabricated Construction
Technology (Suzhou) Co. Ltd.*2
Prefabricated
Construction Technology
70.00 —
24 Gold Mantis Home Decoration E-commerce
(Suzhou) Co. Ltd.*3
Home Decoration
E-commerce
— 90.00
25 Gold Mantis Refined Decoration &
Technology (Suzhou) Co. Ltd.Refined Decoration &
Technology
— 100.00
26 Gold Mantis Supply Chain Management
(Suzhou) Co. Ltd.Gold Mantis Supply
Chain
— 100.00
27 Suzhou Jijia Materials Co. Ltd. Jijia Materials 100.00 —
28 Gold Mantis Art Co. Ltd. Gold Mantis Art 100.00 —
29 Suzhou Jinpu No. 9 Cultural Industrial
Development Co. Ltd.
Jinpu No. 9 100.00 —
30 Xi’an Hi-tech Zone Jinchuang Commercial
Operation Management and Development
Co. Ltd.
Xi’an Jinchuang 90.00 —
31 Gold Mantis Municipal Engineering
Construction (Guizhou) Co. Ltd.
Gold Mantis Municipal 100.00 —
32 Suzhou Industrial Park Jindejin Construction
Engineering Co. Ltd.
Jindejin Construction 100.00 —
33 Gold Mantis North China (Beijing)
Construction Decoration Engineering Co.
Ltd.Gold Mantis North China 100.00 —
34 Sierra Gold Mantis Joint Venture (Private)
Limited
Sierra Gold Mantis 50.00 —
35 GMI Construction Corp. GMI Construction — 100.00
36 M+ Design Associates Pte. Ltd. M+ — 63.00
37 Gold Mantis East China Construction
Decoration Co. Ltd.
Gold Mantis East China 100.00 —
38 Suzhou Huali Jinshi Construction
Decoration Co. Ltd.
Huali Jinshi 60.00 —
39 Shuicheng Ruitong Construction and
Development Co. Ltd.
Shuicheng Ruitong 90.00 —
40 Archi-Feeling Design (SuZhou) Co. Ltd. Archi-Feeling 70.00 —
41 GMI International Inc. GMI Construction
Decoration
— 100.00
42 Jining Gold Mantis Construction
Engineering Co. Ltd.
Jining Gold Mantis
Engineering
— 100.00
43 Hangzhou Gold Mantis Landscape Co. Ltd. Hangzhou Gold Mantis — 100.00
Note*1：HBA incorporated 24 subsidiaries.
*2：Gold Mantis Prefabricated Construction Technology (Suzhou) Co. Ltd. is formerly known
as “Gold Mantis E-commerce Co. Ltd.”.
*3：Home Decoration E-commerce incorporated 44 “Gold Mantis Home” subsidiaries.
For further information about the subsidiaries above please refer to Note VII “Interests inOther Entities”. Those in which the Company held direct stakes were subsidiaries of the Company
while the others were sub-subsidiaries of the Company.
(2) Changes in the Scope of the Consolidated Financial Statements of the Current Period
① Newly Added Subsidiaries in the Current Period
Serial No. Full name of subsidiary Abbr. of subsidiary Reason for inclusion in the
consolidation scope of the
current period
1 Jining Gold Mantis Construction
Engineering Co. Ltd.
Jining Gold Mantis
Engineering
Newly incorproated
2 Hangzhou Gold Mantis Landscape Co. Ltd. Hangzhou Gold Mantis Newly incorproated
② Excluded Subsidiaries in the Current Period
Serial No. Full name of subsidiary Abbr. of subsidiary Reason for exclusion from
the consolidation scope of
the current period
1 “Gold Mantis Home” companies * Transferred or
de-registered
2 Suzhou Miaoyu Construction Materials Co.
Ltd.Miaoyu Construction De-registered
Note*: Home Decoration E-commerce transferred or de-registered 51 “Gold Mantis Home”
subsidiaries in the current period.
For further information about the newly added and excluded subsidiaries please refer to Note
VI “Changes in the Scope of the Consolidated Financial Statements”.
IV Basis of Preparation for the Financial Statements
1. Basis of Preparation
Based on the transactions and events that have actually occurred and the recognition and
measurement in accordance with the provisions of China’s Accounting Standards for Business
Enterprises (CAS) and its application guidance and interpretations of the standards the Company
prepared the financial statement on the going concern basis. In addition the Company also
disclosed relevant financial information in accordance with the Rules No. 15 Governing the
Preparation of Information Disclosure by Companies Publicly Offering Securities - General
Provisions of Financial Reports (Revision 2014) of the China Securities Regulatory Commission.
2. Going Concern
The Company has assessed its ability to continue as a going concern for the 12 months from
the end of the Reporting Period and no matters affecting the ability have been identified. Thus it
was reasonable of the Company to prepare its financial statements on a going concern basis.V. Significant Accounting Policies and Accounting Estimation
Specific accounting policies and accounting estimation hint:
The following significant accounting policies and accounting estimation of the Company have
been formulated in accordance with the Accounting Standards for Business Enterprises. Operations
not mentioned were carried out in accordance with the relevant accounting policies in the CAS.
1. Statement of Compliance with the CAS
The financial statements prepared by the Company complied with the requirements of the CAS
and gave a true and complete view of the financial status operational results changes in owners'
equity cash flows and other relevant information.2. Accounting Period
The Company has adopted the Gregorian calendar year which means from 1 January to 31
December as its accounting year.
3. Operating Cycle
The normal operating cycle of the Company was one year.
4. Functional Currency
The Company's functional currency was RMB and the functional currency for accounting of
the overseas (branch) subsidiaries was the currency of the country or region in which they are
located.
5. The Accounting Methods of Business Combinations Involving Entities under Common Control and
Business Combinations Not Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control
Assets and liabilities acquired by the Company in a business combination were measured at the
carrying value of the acquiree in the consolidated financial statements of the ultimate controlling
party at the date of combination. In particular if the accounting policies adopted by the party being
consolidated and the Company prior to the business combination were different the accounting
policies were unified based on the principle of materiality i.e. the carrying value of the assets and
liabilities of the acquiree shall be adjusted in accordance with the Company's accounting policies . If
there was a difference between the carrying value of the net assets acquired by the Company in a
business combination and the carrying value of the consideration paid the Capital reserves (Capital
premium or Share capital premium) was first adjusted. If the balance of the Capital reserves
(Capital premium or share capital premium) is not sufficient for elimination the Surplus reserves
and Retained earnings were eliminated in turn.
For the accounting methods of business combinations under common control through step
transactions please refer to: Section XII. V. (6).
(2) Business Combinations Not Involving Entities under Common Control
Each of the Company's identifiable assets and liabilities of the acquiree acquired in a business
combination was measured at the fair value at the date of acquisition. In particular if the accounting
policies adopted by the acquiree and the Company prior to the business combination were different
the accounting policies were unified based on the principle of materiality i.e. the carrying value of
the acquiree's assets and liabilities shall be adjusted in accordance with the Company's accounting
policies. The difference between the cost of consolidation at the date of acquisition and the fair
value of the acquiree's identifiable assets and liabilities acquired in a business combination was
recognized as Goodwill. If the cost of consolidation was less than the fair value of the acquiree's
identifiable assets and liabilities acquired in a business combination the cost of consolidation and
the fair value of the acquiree's identifiable assets and liabilities acquired in a business combination
shall be first reviewed. If after the review the cost of consolidation was still less than the fair value
of the acquiree's identifiable assets and liabilities the difference would be recognized as profit or
loss of current period.
For the accounting methods of business combinations under common control through step
transactions please refer to: Section XII. V. (6).
(3) Treatment of Relevant Transaction Expenses in Business Combinations
Intermediary fees such as audit legal services evaluation and consulting and other related
administrative expenses incurred in connection with a business combination were included in the
profit or loss of current period. Transaction expenses for equity securities or debt securities of
consideration issuance for a combination were included in the initial recognition amount of the
equity securities or debt securities.
6. Preparation Methods for Consolidated Financial Statements
(1) Determination of Consolidation Scope
The consolidation scope in the consolidated financial statements was determined on a control
basis and includes not only subsidiaries determined on the basis of voting rights (or similar voting
rights) or in combination with other arrangements but also structured entities determined on the
basis of one or more contractual arrangements.
Control means that the Company has power over the investee enjoys variable returns through
its involvement in the investee's related activities and has the ability to use the power to influence
the amount of returns. Subsidiaries are entities that are controlled by the Company (including
enterprises divisible parts of investees and structured entities controlled by enterprises etc.).Structured entities are the entities that are not designed to have voting or similar rights as a decisive
factor in determining their controlling party (note: sometimes referred to as special purpose
entities).
(2) Special Provisions Regarding the Company as the Parent Being an Investment Entity
If the Company as the parent was an investment entity only the subsidiaries that provide
services related to the investment activities of the investment entity were included in the
consolidated scope and other subsidiaries are not consolidated. Equity investors in subsidiaries that
were not included in the consolidation scope were recognized as financial assets measured at fair
value through profit or loss for the current period.The Company as the parent was an investment entity when it satisfied all the following
conditions:
① The Company aimed to provide investment management services to investors and obtain
funds from one or more investors.② The Company's sole business purpose was to provide a return for investors through capital
appreciation return on investment or both.③ The Company considered and evaluated the performance of almost all investments at fair
value.When the Company as the parent was transformed from a non-investment entity to an
investment entity the enterprise ceased to consolidate its other subsidiaries from the date of
transformation except to include only the subsidiaries providing services related to its investment
activities in the scope of the consolidated financial statements for the purpose of preparing the
consolidated financial statements and treated the other subsidiaries with reference to the principle
of partial disposal of equity interests in subsidiaries without loss of control.When the Company as the parent was transformed from an investment entity to a
non-investment entity the subsidiaries that were not included in the scope of the consolidated
financial statements shall be included at the date of transformation and the fair value of such
subsidiaries at the date of transformation shall be recognized as the transaction consideration for the
acquisition in accordance with the accounting methods for business combinations not involving
entities under common control.
(3) Preparation Methods for Consolidated Financial Statements
The Company prepared consolidated financial statements on the basis of its own financial
statements and those of its subsidiaries and in line with other relevant information.The Company prepared consolidated financial statements by considering the entire enterprise
group as one accounting entity reflecting the overall financial status operational results and cash
flows in accordance with the recognition measurement and presentation requirements of relevant
accounting standards for enterprises and the unified accounting policies.① The assets liabilities owners' equity income expenses and cash flows of the Company as
the parent with those of its subsidiaries were consolidated.② The Company as the parent's long-term equity investments in the subsidiaries were offset
against the Company as the parent's shares in the subsidiaries' owners' equity.③ The impact of internal transactions between the Company as the parent and its subsidiaries
as well as between subsidiaries and each other was offset. If an internal transaction indicated an
impairment loss on a related asset the portion of the loss was recognized in full.④ The special transactions were adjusted from the perspective of the enterprise group.
(4) Treatment of Additions and Deletions of Subsidiaries within the Reporting Period
① Addition of subsidiaries or businesses
A. Increase in subsidiaries or businesses in a business combination involving entities under
common control
(a) When preparing the consolidated balance sheet the Company adjusted the opening amount
of the consolidated balance sheet together with the relevant items in the comparative statements as
if the consolidated reporting entity had been in existence from the point at which control by the
ultimate controlling party commenced.(b) When preparing the consolidated profit statement the subsidiaries and the revenues
expenses and profits of the business combination from the beginning of the business combinations
to the end of the Reporting Period were included in the consolidated profit statement with
adjustments to the relevant items in the comparative statements as if the consolidated reporting
entity had been in existence from the point at which control by the ultimate controlling party
commenced.(c) When preparing the consolidated cash flow statement the subsidiaries and the cash flows
from the beginning of the business combination to the end of the Reporting Period were included in
the consolidated cash flow statement with adjustments to the relevant items in the comparative
statements as if the consolidated reporting entity had been in existence from the point at which
control by the ultimate controlling party commenced.
B. Increase in subsidiaries or businesses in a business combination not involving entities under
common control
(a) When preparing the consolidated balance sheet no adjustment was made to the opening
amount.(b) When preparing the consolidated profit statement the subsidiaries and the income
expenses and profits of the business from the date of acquisition to the end of the Reporting Period
were included.(c) When preparing the consolidated statement of cash flows the cash flows of the subsidiaries
from the date of acquisition to the end of the Reporting Period were included.
② Disposal of subsidiaries or businesses
A. When preparing the consolidated balance sheet no adjustment was made to the opening
amount.
B. When preparing the consolidated profit statement the subsidiaries and the income expenses
and profits of the business from the beginning of the period to the date of disposal were included.
C. When preparing the consolidated cash flow statement the subsidiary and the cash flows of
the business from the beginning of the period to the date of disposal were included.
(5) Special Considerations in Consolidation Offsets
① Long-term equity investments of the Company held by subsidiaries were treated as treasury
shares of the Company and shown as a deduction of owners' equity and it was shown as
"Deduction: Treasury shares" in the consolidated balance sheet under the heading of owners’
equity.Long-term equity investments held by subsidiaries against each other were offset against the
Company's shares of the subsidiaries' owners' equity as compared with the Company's equity
investment in the subsidiaries.② "Specific reserve" and "General reserve" items were not part of paid-up capital (or share
capital) and capital reserves or retained earnings and were also different from retained earnings.They were restored to the owner's shares of the Company as the parent after offsetting long-term
equity investments against the subsidiaries' owners' equity.③ If a temporary difference arose between the carrying value of assets and liabilities in the
consolidated balance sheet and their tax bases in the taxable entity to which they belong as a result
of offsetting unrealized internal sales profit or loss the deferred income tax assets or deferred
income tax liabilities were recognized in the consolidated balance sheet while adjusting the income
tax expense except for the transactions or events directly included in owners' equity and the
deferred income tax relating to business combinations.④ Unrealized profit or loss on internal transactions of the Company arising from the sale of
assets to subsidiaries were fully offset against the "net profit attributable to the Company as the
parent owner". Unrealized profit or loss on internal transactions arising from the sale of assets by a
subsidiary to the Company were offset by allocating between "Net profit attributable to the
Company as the parent owner" and "Net profit attributable to non-controlling interests" in
proportion to the Company's allocation to that subsidiary. Unrealized profit or loss on internal
transactions arising from the sale of assets between subsidiaries were offset by allocating between
"Net profit attributable to the Company as the parent owner" and "Net profit attributable to
non-controlling interests" in proportion to the Company's allocation to the selling subsidiary.⑤ If the minority of shareholders' shares of the current loss of a subsidiary exceeded the
minority of shareholders' shares of owners' equity at the beginning of the period of the subsidiary
the balance was still eliminated by non-controlling interests.
(6) Accounting of Special Transactions
① Acquisition of the equity of minority shareholders
If the Company acquired the equity of a subsidiary owned by the minority shareholders of the
subsidiary in individual financial statements the investment costs of the long-term equity
investments newly obtained from the acquisition of minority equity were measured at the fair value
of considerations paid for the acquisition. In the consolidated financial statements for the difference
between the long-term equity investments newly obtained from the acquisition of minority equity
and the portion of net assets in the subsidiary calculated from the date of acquisition or the date of
combination on an ongoing basis at the ratio of new shares held the capital reserves (capital or
share capital premiums) were adjusted and if the capital reserves were insufficient for offset
surplus reserves and retained earnings were offset in turn.② Obtaining of control of a subsidiary in stages through multiple transactions
A. Business combinations involving entities under common control achieved in stages through
multiple transactions
If the deals fell into a "Package Deal" the Company processed such transactions as one
transaction of obtaining control of the subsidiary. In the individual financial statements in each
transaction prior to the date of combination all equity investments were recognized as long-term
equity investments and their initial investment cost was recognized according to the share of the
carrying value of the net assets of the combined party in the consolidated financial statements of the
ultimate controlling party calculated at the shareholding ratio. For the difference between the initial
costs of long-term equity investments and the carrying value of considerations paid capital reserves
(capital or share capital premiums) were adjusted and if the capital reserves (capital or share capital
premiums) were insufficient for offset surplus reserves and retained earnings were offset in turn. In
the subsequent measurement long-term equity investments were accounted for under the cost
method without involving the preparation of the consolidated financial statements. On the
combination date the Company recognized the initial cost of long-term equity investments
according to its share of the carrying value of the net assets of the combined party in the
consolidated financial statements of the ultimate controlling party calculated at the accumulative
shareholding ratio. For the difference between the initial investment costs and the sum of the
carrying value of the long-term equity investments before the combination and the carrying value of
the new payment consideration of shares further acquired on the combination date capital reserves
(capital or share capital premiums) were adjusted and if the capital reserves (capital or share capital
premiums) were insufficient for offset surplus reserves and retained earnings were offset in turn.Meanwhile the Company prepared a consolidated financial statement on the combination date and
made adjustments in the consolidated financial statement with all parties participating in the
combination deemed to have been existing since the time point when the ultimate controlling party
began the control.If the clauses conditions and economic impact of various transactions fell under one or more
of the following circumstances the multiple transactions were generally regarded as a "Package
Deal".
(a) These transactions are reached concurrently or after the impact thereof on each other is
taken into consideration.(b) These transactions may achieve a complete business result only as a whole.(c) The occurrence of a transaction depends on the occurrence of at a minimum one another
transaction.(d) A transaction is considered uneconomical separately but is considered economical when
other transactions are also taken into consideration.If the deals did not fall into a "Package Deal" in each transaction prior to the combination date
all transactions of the Company were recognized as financial assets (financial assets at fair value
through profit and loss for the current period or available-for-sale financial assets) or long-term
equity investments accounted for under the equity method according to the fair value of the
consideration paid. On the combination date in the individual financial statements the Company
recognized the initial investment cost of long-term equity investments according to its share of the
carrying value of net assets of the subsidiary that were attributable to the Company after the
combination. For the difference between the initial investment cost of long-term equity investments
on the combination date and the sum of the carrying value of the long-term equity investments
before the combination and the carrying value of the new payment consideration of shares further
acquired on the combination date the capital reserves (capital or share capital premiums) were
adjusted and if the capital reserves were insufficient for offset surplus reserves and retained
earnings were offset in turn.In the consolidated financial statements the Company made adjustments based on deeming
that all parties participating in the combination have been existing since the time point when the
ultimate controlling party began the control. When preparing the consolidated financial statements
the Company consolidated the relevant assets and liabilities of the combined party into the
comparative statements of the consolidated financial statements of the combining party no earlier
than the time point when the combining party and the combined party were under the control of the
ultimate controlling party and adjusted the relevant items under owners' equity in the comparative
statements according to the increased net assets arising from the combination. If the retained
earnings recorded by the combined party before the combination that were attributable to the
combining party were not fully recovered in the consolidated financial statements because the
balance of the capital reserves (capital or share capital premiums) of the combining party was
insufficient the Company explained such cases in the notes to the financial statements including
retained earnings recorded by the combined party before the combination the amount a ttributable to
the Company and retained earnings not transferred to the consolidated balance sheets due to the
insufficient balance of the capital reserves.
For the equity investment that was held by the combining party before obtaining the control of
the combined party and accounted for under the equity method the changes from the date when the
original equity was acquired or the date when the combining party and the combined party were
ultimately controlled by the same party whichever was later to the combination date in relevant
profits and losses other comprehensive income and other owners' equity to have been recognized
and were offset respectively against the opening retained earnings during the Reporting Period.
B. Business combinations not involving entities under common control achieved in stages
through multiple transactions
If the deals fell into a "Package Deal" the Company processed such transactions as one
transaction of obtaining control of the subsidiary. In the individual financial statements in each
transaction prior to the date of combinations all equity investments were recognized as long-term
equity investments and their initial investment costs were recognized according to the fair value of
considerations paid. In the subsequent measurement long-term equity investments were accounted
for under the cost method without involving the preparation of the consolidated financial statements.On the combination date in the individual financial statements the sum of the carrying value of
long-term equity investments originally held and the newly added investment cost (fair value of the
new payment consideration of shares further acquired) was regarded as the initial investment cost of
long-term equity investments on the combination date. In the consolidated financial statements the
initial investment cost was offset against the Company's share of the fair value of the identifiable
net assets in the subsidiary and the difference was recognized as goodwill or included in the
consolidated profit and loss of the current period.If the deals do not fall into a "Package Deal" in each transaction prior to the combination date
all transactions of the investor were recognized as financial assets (financial assets at fair value
through profit and loss for the current period or available-for-sale financial assets) or long-term
equity investments accounted for under the equity method according to the fair value of the
consideration paid. On the combination date in the individual financial stateme nts the sum of the
carrying value of long-term equity investments (financial assets or long-term equity investments
accounted for under the equity method) originally held and the newly added investment cost was
regarded as the initial cost of long-term equity investments accounted for under the cost method. In
the consolidated financial statements the equities of the acquiree held before the acquisition date
are re-measured at the fair value of the equities on the acquisition date and the difference between
the fair value and the carrying value was included in the return on investment of the current period;
and if the equities of the acquiree held by the enterprise before the date of acquisition involved
other comprehensive income under accounting by the equity method other comprehensive income
related to such equity shall be included in the current income on the date of acquisition excluding
the other comprehensive income arising from changes in the net assets or net liabilities caused by
re-measurement of the defined benefit pension plan of the combined party. The Company disclosed
in the notes the fair value on the date of acquisition of the equities of the acquiree held by it before
the date of acquisition and the amounts of relevant gains or losses after re-measurement to the fair
value.③ The Company disposed of the long-term equity investments made in a subsidiary without
losing control over the subsidiary
If the Company as the parent disposes of part of the long-term equity investments made in a
subsidiary without losing control over the subsidiary in the consolidated financial statements for
the difference between the payment for equity disposed of and the Company as the parent's portion
of net assets in the subsidiary calculated from the date of acquisition or the date of combination on
an on-going basis corresponding to the long-term equity investments disposed of the capital
reserves (capital or share capital premiums) were adjusted and if the capital reserves were
insufficient for offset the retained earnings were adjusted.④ The Company lost control over the subsidiary for the disposal of long-term equity
investments
A. Disposal through one transaction
If the Company lost control over the investee for the disposal of part of equity investments or
any other reason when it prepared consolidated financial statements the residual equity was
re-measured at the fair value on the date when it lost control of the investee. The sum of the
consideration obtained from the disposition of equity and the fair value of the residual equity minus
the Company's portion of net assets in the former subsidiary calculated from the date of acquisition
or the date of combination on an ongoing basis at the original shareholding ratio was included in the
return on investment of the current period when the Company lost the control and was offset
against the goodwill (Note: If the former enterprise was combined not under common control and
there was goodwill). Other comprehensive income among others related to the equity investments
in the former subsidiary was included in the return on investment of the current period when the
Company lost the control.
In addition other comprehensive income and changes in other owners' equity related to the
equity investments in the former subsidiary were included in the profit and loss of the current period
excluding the other comprehensive income arising from the changes in net liabilities or net assets
due to re-measurement of the defined benefit pension plan of the investee.
B. Disposal in stages through multiple transactions
In the consolidated financial statements a judgment of whether transactions in stages fell into
a "Package Deal" shall be made first.If transactions in stages did not fall into a "Package Deal" all transactions before the Company
lost over a subsidiary shall be treated in accordance with the relevant provisions in "the Company as
the parent disposes of the long-term equity investments made in a subsidiary without losing control
over the subsidiary".If transactions in stages fall into a "Package Deal" each transaction shall be treated as a
transaction that resulted in the loss of control of the subsidiary in accounting processing.Specifically the difference between each disposal price before the loss of control and the parent
company's share of the subsidiary's net assets corresponding to the disposal investment shall be
recognized as other comprehensive income in the consolidated financial statements and after losing
the control transferred to the profit and loss of the current reporting period.⑤ The equity ratio of the Company as the parent was diluted due to capital increase by
minority shareholders of a subsidiary
If the equity ratio of the Company as the parent in a subsidiary was diluted since other
shareholders (minority shareholders) of the subsidiary increased their capital contribution. In the
consolidated financial statements the Company's share of the carrying amount of the net assets of
the former subsidiary was calculated according to the equity ratio of the Company as the parent
before the capital increased. For the difference between the share and the Company as the parent's
share of the carrying amount of the net assets of the subsidiary calculated at the shareholding ratio
capital reserves (capital or share capital premiums) were adjusted and if the capital reserves (capital
or share capital premiums) were insufficient for offset the retained earnings were adjusted.
7. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
A joint arrangement is an arrangement over which two or more parties have joint control. The
Company's joint arrangements were divided into joint operations and joint ventures.
(1) Joint Operations
A joint operation is a joint arrangement whereby the Company has rights to the assets and
obligations for the liabilities relating to the arrangement.The Company recognized the following items in relation to its interest in a joint operation and
accounted for them in accordance with relevant accounting standards:
① Its solely held assets and its share of any assets were incurred jointly;
② Its solely assumed liabilities and its share of any liabilities incurred jointly;
③ Its revenue from the sale of its share of the output arising from the joint operation;
④ Its share of the revenue from the sale of the output by the joint operation;
⑤ Its solely incurred expenses and its share of any expenses incurred jointly.
(2) Joint Ventures
A joint venture is a joint arrangement whereby the Company only has rights to the net assets of
the arrangement.The Company adopted the equity method under long-term equity investments in accounting for
its investments in joint ventures.
8. Recognition Criteria of Cash and Cash Equivalents
Cash refers to the cash on hand and other deposits of the Company that can be used for
payment at any time. Cash equivalents refer to short-term (generally referring to maturities of three
months or less from the acquisition date) investments with high liquidity held which can be easily
converted to cash in a known amount with small risks of value changes.
9. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
(1) Method of Determining the Exchange Rate for Translation in Foreign Currency
Transactions
At initial recognition foreign currency transactions of the Company were translated into the
standard currency for accounting using the spot exchange rate or the rate that approximated the spot
exchange rate on the dates of the transactions.
(2) Methods of Translation of Monetary Items Denominated in Foreign Currencies on
the Balance Sheet Date
On the balance sheet date the foreign currency monetary items were translated at the spot
exchange rate on that date. Exchange difference resulting from the difference between the spot
exchange rate on the balance sheet date and that at the initial recognition or on the previous balance
sheet date was recognized as the profit and loss of the current period.
(3) Methods of Translation of Foreign Currency Financial Statements
Before translating its financial statements about the overseas businesses the Company adjusted
accounting periods and policies for overseas businesses to be in line with its accounting periods and
policies then prepared the financial statements in corresponding currencies (other than the standard
currency for accounting) according to the adjusted accounting periods and policies and translated
the financial statements about the overseas businesses according to the following methods:
① The assets and liabilities in the balance sheet shall be translated at the spot exchange rate
on the balance sheet date. Except "retained earnings" all the other owners' equity items were
converted at the spot exchange rate at the time of occurrence.② Items under income and expenses in the income statement were translated at the spot
exchange rate or the rate that approximates the spot exchange rate on the date of the transaction.③ The differences arising from the translation of foreign currency-denominated financial
statements were presented separately as "Other comprehensive income" under owners' Equity in the
consolidated balance sheet when preparing consolidated financial statements.
④ Foreign currency cash flows and overseas subsidiaries' cash flows were translated at the
spot exchange rate or the rate that approximated the spot exchange rate on the date of cash flows.The effect of a change in the exchange rate on cash was as an adjustment item separately presented
in the cash flow statement.
10. Financial Instruments
Financial instruments refer to contracts that form the financial assets of a party and form
financial liabilities or equity instruments of other parties.
(1) Recognition and Derecognition of Financial Instruments
When the Company became a party to a financial instrument contract it recognized relevant
financial assets or financial liabilities.If a financial asset met any of the following conditions it shall be stopped from recognition:
① The contractual right to obtain cash flows from the financial asset is terminated;
② The said financial asset is transferred and it meets the following derecognition conditions
for the transfer of financial assets.If current obligations of the financial liability (or part of the liability) have been released the
Company shall derecognize the financial liability (or the part of the liability). If the Company (the
borrower) and a lender signed an agreement to replace the existing financial liability by way of
assumption of a new financial liability with the terms of the new financial liability substantially
different from those of the existing financial liability it derecognized the existing financial liability
while recognizing the new financial liability. If the Company made material changes to the contract
terms of the existing financial liability in whole (or in part) the existing financial liability shall be
derecognized and the financial liability after changes of terms shall be recognized as a new
financial liability.
All regular acquisition or sales of financial assets were recognized and derecognized on a
trading day basis. Regular acquisition or sales of financial assets means delivering financial assets
within the time limit of laws regulations and usual market practices and in line with contract terms.The trading day refers to the date when the Company promises to acquire or sell financial assets.
(2) Classification and Measurement of Financial Assets
At initial recognition according to the business model of managing financial assets and the
contractual cash flow characteristics of financial assets the Company classified financial assets into
the following categories: financial assets measured at the amortized cost financial assets measured
at fair value through profit and loss for the current period and financial assets measured at fair
value through other comprehensive income of the current period. In this case unless the Company
changed its business model of managing financial assets all relevant financial assets that were
affected shall be subject to re-classification on the first day during the first Reporting Period and
shall not be re-classified after the initial recognition.
Financial assets were measured at fair value upon initial recognition. For financial assets
measured at fair value through profit and loss for the current period transaction costs were directly
included in profit and loss of the current period. For other types of financial assets related
transaction costs were included in their initial recognized amounts. The Company conducted the
initial measurement of the accounts receivable and notes receivable arising from selling products or
providing labor services without or not considering major financing components according to the
transaction prices defined by the revenue standards.The subsequent measurement of financial assets depended on their categories:
① Assets measured at amortized cost
Financial assets that meet all the following conditions shall be classified as financial assets
measured at amortized cost: The Company's business model of managing the financial assets aims
at obtaining contractual cash flows; and as stipulated by contract clauses of the financial assets the
cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets were subsequently measured at amortized costs using the
effective interest method. Gain or loss arising from derecognition amortization using the effective
interest method or impairment was included in profit and loss of the current period.
② Financial assets at fair value through other comprehensive income
Financial assets that met all the following conditions shall be classified as financial assets
measured at fair value through other comprehensive income: The Company's business model of
managing the financial assets aims at obtaining contractual cash flows as well as selling financial
assets; and as stipulated by contract clauses of the financial assets the cash flows generated on a
specific date are merely for the payment of principal or interest from the unpaid principal. Such
financial assets shall be subsequently measured at fair value. Except for impairment losses or gains
and exchange gains and losses that were recognized as profit and loss of the current period changes
in the fair value of such financial assets shall be recognized as other comprehensive income until
the financial assets were derecognized when accumulative gains or losses shall be transferred to
profit and loss of the current period. The interest income of the financial asset calculated by the
effective interest method shall be recognized as the profit and loss of the current period.
For financial assets measured at fair value through other comprehensive income that were
irrevocably chosen and designated by the Company from some non-trading equity instruments the
relevant dividend income shall be included in profit and loss of the current period and changes in
the fair value shall be recognized as other comprehensive income until the financial assets were
derecognized when accumulative gains or losses shall be transferred to retained earnings.
③ Financial assets measured at fair value through profit and loss for the current period
The above financial assets measured at amortized cost and financial assets other than those
measured at fair value through other comprehensive income were classified as financial assets at
fair value through profit and loss for the current period. Such financial assets shal l be measured at
fair value and all changes in fair value were recognized as the profit and loss of the current period.
(3) Classification and Measurement of Financial Liabilities
The Company classified financial liabilities into financial liabilities measured at fair value
through profit and loss for the current period loan commitments at an interest rate that was lower
than the market interest rate and financial guarantee contract liabilities and financial liabilities
measured at amortized cost.The subsequent measurement of financial liabilities depended on their categories:
① Financial liabilities measured at fair value through profit and loss for the current period
Such financial liabilities included held-for-trading financial liabilities (including derivatives
that are financial liabilities) and financial liabilities designated as financial liabilities measured at
fair value through profit and loss for the current period. After initial recognition for the subsequent
measurement of such financial liabilities at fair value except for those related to hedge accounting
gain or loss arising (including interest expense) shall be included in profit and loss of the current
period. However for financial liabilities measured at fair value through profit and loss for the
current period designated by the Company the changes in the fair value of such financial liabilities
resulting from the changes in their own credit risks shall be included in other comprehensive
income and when such liabilities were derecognized accumulative gains and losses that were
previously included in other comprehensive income shall be transferred out of other comprehensive
income and included in retained earnings.② Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment offered by the Company to customers to grant loans to
the customers according to the established contract clauses within the commitment period.Provisions shall be set aside for loan commitments according to the expected credit loss model.
Financial guarantee contracts refer to contracts that require the Company to pay a specific
amount to the contract holder who has suffered losses when a specific debtor fails to pay in
accordance with the initial or revised terms of the debt instrument. The subsequent measurement of
financial guarantee contract liabilities shall be conducted based on the amount of loan loss provision
determined following the impairment principle for financial instruments and the initial recognition
amount after deducting the accumulated amortization amount determined according to the revenue
recognition principle whichever is higher.
③ Financial liabilities measured at amortized cost
After initial recognition other financial liabilities shall be measured at a mortized cost under
the effective interest method.
Except for special situations financial liabilities and equity instruments were differentiated
based on the following principles:
① If the Company fails to unconditionally avoid fulfilling a contractual obligation through the
delivery of cash or other financial assets the obligation fits the definition of financial liabilities.
Although some financial instruments do not explicitly include terms and conditions that require any
obligation of cash or other financial asset other terms and conditions may be indirectly recognized
as contractual obligations.② If a financial instrument shall or may be settled with the Company's equity instruments it
shall be considered that whether the equity instrument used to settle is recognized as a substitute for
cash or other financial assets or as an approach to enable the instrument holder to enjoy the
remaining equity of the assets after the issuer deducts all liabilities. If the instrument is a substitute
it is a financial liability of the issuer; if the instrument is for the benefit of its holder it is an equity
instrument for the issuer. In some cases the Company shall or may settle the financial instrument
with its equity instruments according to the financial instrument contract and the amount of
contractual obligations or contractual duties equals what the number of equity instruments that are
acquirable or need to be delivered multiplies the fair value of the settlement. On top of that no
matter the amount of contractual obligations and contractual duties is fixed or adjusts based
partially or completely on variants aside from the market price of the Company's equity instruments
(such as interest rate the price of a certain good or that of a certain financial instrument) the
contract is classified as financial liabilities.
(4) Financial Derivatives and Embedded Derivatives
Financial derivatives were initially measured at fair value on the date on which the derivative
contract was entered into and were subsequently remeasured at fair value. Derivatives were
recognized as assets when the fair value was positive and as liabilities when the fair value was
negative.The effective portion of the cash flow hedge is included in other comprehensive income and is
transferred from other comprehensive income and included in the profit or loss of the current period
as the hedged instrument affected profit or loss. In other cases gains or losses generated by changes
in the fair value were directly included in the profit or loss of the current period.
For hybrid instruments that include embedded derivatives if the hybrid contract contained a
host that was a financial asset hybrid instruments fell into regulations applicable to financial assets
classification. Otherwise the embedded derivatives were separated from the hybrid instruments and
treated as separate derivatives financial instruments if the hybrid contract was not measured at fair
value through profit or loss for the current period their economic characteristics and risks were not
closely related to those of the host contract and the separate instrument with the same terms as the
embedded derivatives met the definition of a derivative. If the embedded derivative could not be
measured at fair value separately on the date it was obtained or subsequent balance sheet dates the
hybrid instruments were designated to be financial assets or financial liabilities at fair value through
profit or loss for the current period.
(5) Impairment of Financial Instruments
The Company recognized on the basis of expected credit losses the loss reserves associated
with its financial assets at amortized cost debt investments contract assets lease receivables loan
commitments and financial guarantee contracts which were measured at fair value and included in
other comprehensive income.① Measurement of expected credit loss
Expected credit loss refers to the weighted average of credit loss of financial instruments
weighted with default risks. Credit loss refers to the difference between all contract cash flow
receivables discounted at the original effective interest rate under the contract and all expected cash
flow receivables i.e. the present value of all cash shortages. Specifically acquired or originated
credit-impaired financial assets of the Company shall be translated at the credit-adjusted effective
interest rate.Lifetime expected credit losses refer to those caused by possible defaults during the entire
expected duration of a financial instrument.The expected credit losses in the next 12 months refers to those caused by the default events of
the financial instrument that may occur within 12 months (or the expected duration if the expected
duration of the financial instrument is less than 12 months) after the balance s heet date and it is part
of the expected credit losses in the entire duration.On each balance sheet date the Company respectively measured the expected credit losses of
financial instruments in different stages. If the credit risk of a financial instrument has had no
significant increase since its initial recognition the instrument shall fall in the first stage for which
the Company would measure the loss reserves according to the expected credit losses in the future
12 months. If the credit risk of a financial instrument has had a significant increase since its initial
recognition but no credit impairment has occurred the instrument shall fall in the second stage for
which the Company would measure the loss reserves according to the expected credit losses in the
entire duration of the instrument. If the credit impairment has occurred since its initial recognition
the financial instrument shall fall in the third stage for which the Company would measure the loss
reserves according to the expected credit losses in the entire duration of the instrument.
As for a financial instrument with low credit risks on the balance sheet date the Company
measured the loss reserves according to the expected credit losses in the future 12 months assuming
that its credit risk has had no significant increase since its initial recognition.
For financial instruments with low credit risks in stages 1 and 2 the Company calculated the
interest income at the effective interest rate and on the carrying amount of the instruments without
deductions for provisions for asset impairment. For financial instruments in stage 3 interest income
was calculated at the effective interest rates and on the amortized cost by reducing the provisions
for asset impairment from the carrying amount.
For notes receivables accounts receivables financing receivables contract receivables and
long-term receivables whether there was a significant financial component or not the Company
measured the loss reserves based on the lifetime expected credit losses.
A. Receivables/Contract assets
Receivables with objective evidence of impairment and those applicable to individual
assessment such as notes receivable accounts receivable other receivables receivables financing
contract assets and long-term receivables were individually tested for impairment to recognize
expected credit losses and accrue the individual provisions for asset impairment. For receivables
without objective evidence of impairment such as notes receivable accounts receivable other
receivables receivables financing contract assets and long-term receivables or when an individual
financial asset could not assess expected credit losses at a reasonable cost the Company classified
notes receivable accounts receivable other receivables receivables financing contract assets and
long-term receivables into several groups based on credit risk features and expected credit losses
were calculated based on the groups. The grounds for the determination of groups were presented as
follows:
(a) Notes receivable groups were determined based on the following grounds:
Group 1 of note receivable: Bank acceptance
Group 2 of note receivable: Trade acceptance
For notes receivables classified as groups the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration with
historical credit losses current situations and forecast for the future economy as a reference.(b) Groups of accounts receivable were determined based on the following grounds:
Group 1 of accounts receivable: Related party group
Group 1 of accounts receivable: Non-related party group
For accounts receivables classified as groups the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration with
historical credit losses current situations and forecast of the future economy as a reference.(c) Groups of other receivables were determined based on the following grounds:
Group 1 of other receivables: Related party group
Group 2 of other receivables: Non-related party group
For other receivables classified as groups the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in 12 coming months or the entire
duration with historical credit losses current situations and forecast of the future economy as a
reference.(d) Groups of receivable financing were determined based on the following grounds:
Group 1 of receivable financing: Notes receivable
Group 2 of receivable financing: Accounts receivable
For receivables financing classified as groups the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration with
historical credit losses current situations and forecast of the future economy as a reference.(e) Groups of contract assets were determined based on the following grounds:
Group 1 of contract assets: Finished but unsettled assets
Group 2 of contract assets: Undue guarantee deposits
For contract assets classified as groups the Company calculated the expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration with
historical credit losses current situations and estimates for the future economy as a reference.(f) Groups of long-term receivable were determined based on the following grounds:
Group 1 of long-term receivables: Construction receivables
Group 2 of long-term receivables: Other receivables
For long-term receivables classified as Group 1 the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in the entire duration with
historical credit losses current situations and estimates for the future economy as a reference.
For long-term receivables classified as Group 2 the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in 12 coming months or the entire
duration with historical credit losses current situations and estimates for the future economy as a
reference.
B. Debt investments and other debt investments
For debt investments and other debt investments the Company on the basis of the nature of
investment and various types of counter-parties and risk exposures calculated expected credit
losses through exposure to default risks and the expected credit loss rate in 12 coming months or the
entire duration.② Low credit risks
A financial instrument was considered as one with low credit risks if the following conditions
were met: the financial instrument has low risks of default; the borrower's capability to fulfill the
contractual cash flow obligations in a short term is strong and will not be undermined by negative
changes in long-term economic development and operation environment.
③ A surge in credit risks
By comparing the default rate within the expected duration of a financial instrument
recognized on the date of balance sheet and the default rate withi n the expected duration at initial
recognition the Company determined the relative changes of the default rate within the expected
duration so that whether the credit risks of a financial instrument rocketed since the initial
recognition was assessed.When doing the assessment the Company considered reasonable and well-grounded
information that needed no unnecessary extra costs or endeavors including forward-looking
information. The Company considered the following information:
A. Whether the internal price indicator caused by the change in credit risks varies significantly;
B. Adverse changes in businesses financial or economic situations that are expected to cause
significant changes in the debtor's capability to perform the obligation of repayment;
C. Whether the effective or expected operation achievements of the debtor change significantly;
whether there are unfavorable changes in the borrower's regulatory economic and technical
environment;
D. Whether the value of collateral for debt mortgage or the quality of the collateral or credit
enhancement provided by a third party changes significantly; These expected changes will reduce the
debtor's economic motive for repaying on the agreed date or affect the rate of default;
E. Whether the economic motive that is expected to affect repayment on the agreed date changes
significantly;
F. Whether expected changes of loan contract including the expected breach of contract will lead
to the exemption from or the revision of contractual obligations interest-free periods the interest
jump requirement for more collaterals or guaranties or other changes in the contractual framework
of financial instruments;
G. Whether the expected performance and repayment of the debtor change significantly; and
H. Whether the contract payment is overdue for 30 days or more.
According to the nature of financial instruments the Company assessed whether the credit risk
increased significantly based on individual financial instruments or portfolios of financial
instruments. When doing the portfolio-based assessment the Company could classify financial
instruments based on shared features of credit risks for instance overdue information and credit
risk ratings.Usually if a financial instrument was more than 30 days overdue the Company recognized
that its credit risks had increased significantly. Unless the Company could obtain reasonable and
well-grounded information without too many costs and efforts to prove that there was no surge of
credit risks since initial recognition although the payment had been over 30 days later than the
payment period agreed in a contract.
④ Financial assets with incurred credit impairment
The Company assessed whether credit impairment has incurred to the financial assets
measured at amortized cost and the debt investments measured at fair value and included in other
comprehensive income on the balance sheet date. If one or more incidents that had an adverse effect
on the expected cash flows of a financial asset occurred the asset was recognized as o ne with
incurred credit impairment. Evidence for financial assets with incurred credit impairment included
the following observable information:
The issuer or debtor has significant financial difficulties; the debtor breaches the contract such
as default or being overdue in the payment of interest or principal; for economic or contractual
reasons related to the debtor the creditor gives the debtor concessions that he would not make
under any other circumstance; the debtor is likely to go bankrupt or under go other financial
reorganization; the financial difficulty of the issuer or debtor leads to the disappearance of the
active market for the financial asset; the purchase or generation of a financial asset at a substantial
discount that reflects the fact that a credit loss has occurred.⑤ Presentation on expected credit loss reserves
To reflect changes in the credit risk of financial instruments since the initial recognition the
Company remeasured expected credit losses on every balance sheet date. The co nsequent increases
or reversals of loss reserve shall be included as impairment losses or gains into profit or loss for the
current period. For financial assets measured at amortized cost impairment losses were allocated to
offset the carrying value of the financial asset presented in the balance sheet. For the debt
investments measured at fair value through other comprehensive income the Company recognized
their loss reserves in other comprehensive income but not offset the carrying value of the financia l
asset.⑥ Write-offs
If the Company no longer reasonably expected the contractual cash flows of a financial asset
could be completely or partially recaptured the carrying amount of the financial asset shall be
directly written down. Such write-downs constructed the derecognition of relevant financial assets.This usually happened when the Company recognized that the debtor did not have assets or income
sources to generate sufficient cash flows for the repayment of write-downs.Recaptured financial assets with write-downs were included as the reversal of impairment
losses in profit or loss for the current period.
(6) Financial asset transfer
Financial asset transfer refers to the following two situations:
A. The contractual right to obtain cash flows from the financial asset is transferred to the other
party.
B. The financial asset is completely or partially transferred to the other party but the contractual
right to obtain cash flows is reserved and the contractual obligation to pay cash flow obtained to o ne
or more payees was assumed.
① Derecognition of transferred financial assets
A financial asset was derecognized if almost all the risks and rewards of its ownership had
been transferred or if the Company had retained no control over the financial asset even if almost
all the risks and rewards of its ownership were neither transferred nor retained.Judgment about waiver of the control over transferred financial assets was based on the
effective capability of the transferor to sell the financial asset. If the transferor could have ex parte
and overall sales of the transferred financial asset to an unrelated third party and the sales were
with no extra constraining factors attached it was recognized that the Company had waived the
control over the financial asset.The Company valued the essence of financial asset transfer when judging whether the transfer
met the conditions for derecognition.If the overall transfer of financial assets met the conditions for derecognition the difference
between the following amounts was included in the profit and loss for the current period:
A. Carrying value of the transferred financial assets;
B. The sum of the consideration due to transfer and the cumulative amount of fair value changes
originally included in other comprehensive income that corresponds to the derecognized portion
(transfer-related financial assets refer to those classified as financial assets measured at fair value
through other comprehensive income in line with Article 18 of Accounting Standards for Business
Enterprises No. 22-Recognition and Measurement of Financial Instruments).
For partial transferred financial assets that met the conditions for derecognition the carrying
value of the overall transferred financial assets was allocated at the respective relative fair value on
the transfer date between the recognized portion and the derecognized portion (in this case retained
service assets are considered as part of the recognized financial assets) and the following two
accounts were included in profit or loss for the current period:
A. The carrying value of the derecognized portion on the derecognition date.
B. The sum of the consideration the derecognized portion and the cumulative amount of fair
value changes originally included in other comprehensive income that corresponds to the
derecognized portion (transfer-related financial assets refer to those classified as financial assets
measured at fair value through other comprehensive income in line with Article 18 of Accounting
Standards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments).
② Continuous involvement of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets were neither
transferred nor reserved and the control over it was not waived relevant financial assets shall be
recognized based on the extent of continuing involvement with transferred financial assets and
related liabilities shall be recognized as well.The extent of continuing involvement with transferred financial assets refers to the extent of
risks of changes in the value of transferred financial assets or the rewards the enterprise undertakes.
③ Continuous recognition of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets were
reserved the overall transferred financial asset shall be recognized continuously and the
consideration obtained shall be recognized as a financial liability.The financial asset could not offset relevant recognized financial liabilities. In the subsequent
accounting period the enterprise shall continue to recognize the revenues (or gains) generated by
the financial asset and the costs (or losses) generated by the financial liability.
(7) Offset between Financial Assets and Financial Liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and
shall not offset each other. But if they met all the following conditions the net amount after they
offset each other was reported in the balance sheet:
The Company had an enforceable legal right to offset the recognized amounts.The Company planned to settle them on a net basis or to realize the financial assets and pay off
the financial liabilities at the same time.The transferor shall not offset transferred financial assets that fail to meet the criteria for
derecognition against relevant liabilities.
(8) Method of Determining the Fair Value of Financial Instruments
Please refer to Section XII. V. (10) for the method of determining the fair value of financial
assets and financial liabilities.
11. Notes Receivable
Please refer to the description of financial instruments.
12. Accounts Receivable
Please refer to the description of financial instruments.The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on Industry
Information Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.Please refer to the description of financial instruments.
13. Receivables Financing
Please refer to the description of financial instruments.
14. Other Receivables
The determination methods and accounting methods of the expected credit losses of other receivables.Please refer to the description of financial instruments.
15. Inventories
(1) Classification of Inventories
Inventories refer to finished products the Company holds for sales in routine activities work in
process and materials and supplies consumed in production process or when providing services
such as raw materials merchandise on hand work in process consumptive biological assets and
turnover materials.
(2) Pricing Method of Issuing Inventories
Inventories of the Company were priced using the weighted average method when being
issued.
(3) The Inventory System
The Company adopted the perpetual inventory system which performed at least a stocktaking
annually and included inventory shortage and overage into profit and loss for that year.
(4) The Accrual Method for Falling Price Reserves of Inventories
On the balance sheet date the measurement based on which was smaller between the cost and
the net realizable value was put in practice. If the cost of inventories was higher than its net
realizable value then the accrual for inventory falling prices reserves was implemented and the
figure was included in the profit or loss for the current period.The net realizable value of inventories was determined on the basis of reliable evidence while
taking into account the purpose of holding inventories and the effect of items after the balance sheet
date.① In regular production and operation the determination of the net realizable value for
inventories for direct sales such as finished goods goods and materials for sale was the expected
selling price minus the expected selling expense and relevant taxes. The net realizable value of the
inventories which were owned in order to execute a sale contract or a labor services agreement was
measured on the basis of the contract price. If inventories owned by the Company were more than
quantities ordered in sale contracts the net realizable value of exceeding quantities of inventories
was measured on the basis of the common selling price. The net realizable value of materials for
sale and so on was measured on the basis of market price.② In regular production and operation the determination of the net realizable value of
materials inventories that needed processing was the expected selling price of finished goods that
were about to produce minus the cost that was about to be incurred when completion the expected
selling expense and the relevant taxes. If the net realizable value of the finished good that was about
to produce was higher than the cost the correlated material was measured at the cost; if the drop of
the price of the material indicated that the net realizable value of the finished good was lower than
the cost the correlated material was measured at net realizable value and the accrual of reserves for
falling price of inventories was implemented on the basis of the difference.③ Generally the reserves for falling price of inventories were accrued at a single inventory
unit but if the number of inventories was large and the price was low the accrual was on the basis
of categories of inventories.④ If the influence of the previous write-down value of inventories had vanished on the
balance sheet date the write-down was recovered and reversed within the amount of the previously
accrued reserves for falling price of inventories. The reversed amount was included in the profit or
loss for the current period.
(5) The Amortization Method of Turnover Materials
① Amortization method of low-value and perishable items: One-off resale method was
adopted when these items were utilized.
② Amortization method of packaging items: One-off resale method was adopted when these
items were utilized.
16. Contract Assets
Contract assets and contract liabilities
Applicable from 1 January 2020
The Company reported contract assets or contract liabilities on the balance sheet in accordance
with the relationship of performance obligations and customer payment. The consideration the
Company had the right to receive from transferring goods to or providing services from customers
(in the meantime this right was dependent on other factors except time lapse) was reported as
contract assets. The obligations of transferring goods to or providing services for customers as a
result of the consideration that the Company had received or shall receive from customers were
reported as contract liabilities.Please refer to Section XII. V. (10) for the Company's recognition methods and accounting
methods of the expected credit losses of contract assets.
Contract assets and contract liabilities were reported separately on the balance s heet. Contract
assets and contract liabilities in the same contract were reported in the form of net amount. If the net
amount was debit balance it was reported in the items of "Contract assets" or "Other non-current
assets" according to its liquidity. If the net amount was credit balance it was reported in the items
of "Contract liabilities" or "Other non-current liabilities" according to its liquidity. Then contract
assets and contract liabilities in different contracts could not offset each other.Please refer to Section XII. V. (10) for the Company's recognition methods and accounting
treatment methods of the expected credit losses of contract assets.
17. Contract Costs
Applicable from 1 January 2020
The contract cost could be divided as contract performance cost and contract acquisition cost.The cost incurred by performing a contract by the Company was recognized as an asset in the
form of contract performance cost when it met all the following conditions:
① The cost was directly related to a current or an expected contract including the cost of
direct labor direct material and manufacture (or similar cost) and the clearly determined cost
assumed by customers and other costs that were incurred only for the contract.② The cost increased the resources that the Company would use for performing the
performance liabilities in the future.③ The cost was expected to be recovered.If the incremental cost incurred by the Company's acquisition of the contract was expected to
be recovered it was recognized as an asset in the form of contract acquisition cost.The asset relevant to contract cost was amortized on the same basis as goods or service
revenue recognition relevant to this asset; but if the amortization period of the contract acquisition
cost was no more than one year the Company included it into the profit or losses for the current
period when it was incurred.If the carrying value of the assets related to contract costs was higher than the difference
between the two figures below the Company would set aside provisions for assets impairment to
deal with the extra part and recognized that part as asset impairment losses further considering
whether to accrue provisions related to contracts with losses:
① Estimated residual consideration to be obtained from the transfer of commodities or
services related to the assets;
② Estimated costs incurred from the transfer of the relevant commodities or services.
If reversal occurred after the provisions for assets impairment mentioned above the asset
carrying value after reversal was no more than the carrying value of the asset on the reversal date
assumed to be the amount without accrual of provision for assets impairment.The contract performance cost recognized as an asset was reported in the item of "Inventories"
if the amortization period was no more than one year or a regular operating period when it was first
recognized; if the amortization period was more than one year or a regular operating period when it
was first recognized it would be reported in the item of "Other non-current assets".The contract acquisition cost recognized as an asset was reported in the item of "Other current
assets" if the amortization period was no more than one year or a regular operating period when it
was first recognized; if the amortization period was more than one year or a regular operating
period when it was first recognized it would be reported in the item of "Other non-current assets".18. Assets Held for Sale
(1) The Classification of Held-for-sale Non-current Assets or Disposal Groups
The Company classified the non-current assets or disposal groups that met all the following
conditions as assets held for sale:
① In accordance with the practice of selling such assets or disposal groups in similar
transactions they could be sold immediately in the current situation;
② The sale was likely to occur i.e. the Company has already made a resolution of an offer
and the acquisition commitment was confirmed and the offer was expected to be completed within
one year. (Approval has been obtained for those that can be sold only after being approved by
relevant authorities or regulators of the Company subject to relevant regulations.)
The non-current assets or disposal groups acquired by the Company in order to resell was
classified as assets held for sale on the acquisition date if they not only met the condition that the
sales were expected to finish within one year but that they were likely to meet other conditions to be
classified as held-for-sale assets in a short term (usually 3 months).If the Company lost its control rights over its subsidiary due to selling the investments in the
subsidiary or for some other similar reasons provided that the to-be-sold investments in the
subsidiary met the condition to be classified as held-for-sale assets in some of all the financial
statements of the Company as the parent these investments would be classified as assets held for
sale and in the consolidated financial statements all assets and liabilities of the subsidiary would be
classified as held-for-sale no matter whether the Company maintained some of the equity
investments after sales.
(2) The Measurement of Held-for-sale Non-current Assets or Disposal Groups
The measurements of the following items were applicable to other related accounting standards
respectively: the investment property measured later at fair value model the biological asset
measured at the net amount which equaled the fair value minus sales cost the assets formed by
employees' salaries deferred income tax assets the financial assets regulated by accounting
standards relevant to financial instruments and the rights generated in the insurance contract
regulated by insurance-contract-related accounting standards.When the held-for-sale non-current assets or disposal groups were initially measured or
measured again on the balance sheet date if the carrying value was higher than the net amount
which equaled fair value minus sales cost the carrying value was written down to the net amount
equaling fair value minus sales cost and the write-down was recognized as asset impairment loss
and included in the profit and loss for the current period. And the provisions for asset impairment
for the assets held for sale was accrued at the same time.When non-current assets or disposal groups were no longer classified as held-for-sale assets
because they no longer met the conditions to be classified as held-for-sale assets or when
non-current assets were removed from held-for-sale disposal groups the measurement was based on
whichever was smaller between the following two figures:
① The amount of the carrying value before the classification of held-for-sale assets and after
the adjustment of depreciation amortization or write-down that shall have been recognized
assuming that the assets were not classified as held-for-sale.② The amount that was recoverable.
(3) The Reporting
The Company reported the held-for-sale non-current assets or assets in disposal groups
separately in the balance sheet to distinguish them from other assets and reported the liabilities in
held-for-sale disposal groups separately in the sheet to distinguish them from other liabilities. The
held-for-sale non-current assets or assets in held-for-sale disposal groups could not offset the
liabilities in held-for-sale disposal groups and they were reported as current assets and current
liabilities respectively.
19. Debt Investments
20. Other Debt Investments
21. Long-term Receivables
Please refer to the description of financial instruments.
22. Long-term Equity Investments
Long-term equity investments of the Company refer to the equity investments where the
Company exerts control and significant influence on the investee as well as the equity investment in
its joint ventures. If the Company is able to exert significant influence on it the investee is an
associate of the Company.
(1) The Grounds for Determining the Joint Control and Significant Influence over
Investees
Joint control refers to the common control over a particular arrangement according to relevant
agreement and that the decisions on relevant activities under such arrangement are subject to the
unanimous consent from the parties sharing the joint control. When the judgment of whether joint
control existed or not was executed the first to judge was whether all parties or a group of parties
controlled the arrangement collectively. If relevant activities under an arrangement was only
determined by the concerted action of all parties or a group of parties then it was thought that all
parties or a group of parties controlled the arrangement collectively. The next to judge was whether
the decisions on relevant activities under such arrangement were subject to the unanimous consent
from the parties that controlled the arrangement collectively. If there were two or more party groups
that had the ability to control an arrangement collectively there was no joint control. When the
judgment of whether joint control existed was executed the possessed protection right was not
considered.Significant influence refers to having the power to participate in the financial and operating
policy decision-making of the investee but cannot control or together with other parties jointly
control the formulation of these policies. In the determination of whether significant influence was
exerted on the investee the influence of the investees' voting power stocks that were held directly or
indirectly by the investor and the influence after assuming that the executable potential voting
power for the current period held by the investor and other parties was converted into the equity
interest of the investee were taken into account. These included the influences of convertible stock
warrant stock option and convertible corporate bonds for the current period issued by the investee.When the Company held more than 20% (inclusive) but less than 50% of the voting power
stocks of the investee directly or indirectly through a subsidiary it was generally deemed as having
a significant influence over the investee. Unless there was clear evidence indicating that under this
condition the Company could not participate in the production and operation decisions of the
investee the significant influence still maintained.
(2) Determination of Initial Investment Cost
① The investment cost of the long-term equity investments formed by business combination
was determined on the basis of the following regulations:
A. If the business combination was under the same control and the combinator used cash
payment non-cash asset assignment or debt assumption as the consideration of combination the
initial investment cost of the long-term equity investments was recognized at the portion of the
carrying value of the combined party's owners' equity in the consolidated financial statement of the
ultimate controlling party on the date of combination. The difference between the initial investment
cost of long-term equity investments and the carrying value of paid cash assigned non-cash assets
and assumed debts was referred to adjusting capital reserves; if capital reserves were not enough for
the reduction then retained earnings were adjusted.
B. If the business combination was under the same control and the combinator used equity
flotation as the consideration of combination then the initial investment cost of the long-term equity
investments was recognized at the portion of the carrying value of the combined party's owner's
equity in the consolidated financial statement of the ultimate controlling party on the date of
combination. The difference between the initial investment cost of the share capital and the long-term
equity investments and the total carrying value of the issued stocks was the sum of the carrying value
of the issued stocks which was referred to adjusting capital reserves; if capital reserves were not
enough for the reduction then retained earnings were adjusted.
C. If the business combination was not under the same control then the initial investment cost of
the long-term equity investments was the combination cost which was measured at the fair value of
the assets paid for the control right over the acquired party the liabilities incurred or assumed and the
equity securities issued on the date of acquisition. The commissions incurred as a result of business
combination such as intermediary costs of audit legal services consultation and assessment and
other relevant administrative expenses were included in the profit and loss for the current period
when incurred.② The investment cost of the long-term equity investments acquired by other means (that is
except by the means of business combination) was determined on the basis of the following
regulations:
A. For the long-term equity investments acquired by payment in cash the investment cost was
the actual purchasing price that was paid. The initial investment cost included the expenses directly
related to the acquisition of long-term equity investments taxes and other necessary expenditure.
B. For the long-term equity investments acquired by issuing equity securities the initial
investment cost was the fair value of the issued equity securities.
C. For the long-term equity investments acquired by converting non-monetary assets if the
conversion had commercial substance and in the meantime the fair value of the received assets or
surrendered assets could be measured reliably the initial investment cost shall be the fair value of the
surrendered assets and other taxes and the difference between the fair value of the surrendered assets
and the carrying value was included in the profit and loss for the current period; if the non-monetary
assets conversion did not meet the aforesaid two conditions concurrently the initial investment cost
was the carrying value of the surrendered assets and other taxes.
D. For the long-term equity investments acquired through debt restructuring the carrying value
was determined based on the fair value of the waived creditor's rights and other costs such as taxes
directly attributable to the asset and the difference between the fair value and carrying value of the
waived creditor's rights was included in the profit and loss of the current period.
(3) Subsequent Measurement and Recognition of Profit and Loss
The Company was able to account for the long-term equity investments controlled by the
investee. The equity method would be adopted for long-term equity investments of associates and
joint ventures.
① Cost method
For the long-term equity investments measured by cost method the Company adjusted the cost
of long-term equity investments when providing additional investments or repaying the investments;
the cash dividends or profits declared by the investee were recognized as return on investment for
the current period.
② Equity method
The common accounting treatment of long-term equity investments measured under the equity
method:
If the amount of the Company's investment cost for the long-term equity investments was
larger than the share of the investee's identifiable net assets of the fair value entitled to the Company
at the time of investment the initial investment cost of the long-term equity investments would not
be adjusted. If the amount of the Company's initial investment cost for the long-term equity
investments was smaller than the share of the investee's identifiable net assets of the fair value
entitled to the Company at the time of investment the difference was included in the profit and loss
for the current period while the cost of the long-term equity investments was adjusted concurrently.The Company recognized the return on investment and other comprehensive income
respectively according to the allocated share of net profit and loss and other comprehensive income
reported by the investee as it was entitled to share or was responsible for sharing while the carrying
value of the long-term equity investments were adjusted. The Company measured its allocated share
according to the profits and cash dividend declared by the investee while a commensurate
reduction incurred to the carrying value of the long-term equity investments. For other changes in
owners' equity of the investee except the net profit and loss other comprehensive income and profit
distribution the carrying value of the long-term equity investments was adjusted and the changes
were included in the owners' equity. When recognizing the allocated share of net profit of loss of
the investee the Company recognized the net profit and loss of the investee after adjustment based
on the fair value of the identifiable net assets of the investee at the time of obtaining the investments.If there was any inconsistency of the accounting policy and accounting period between the investee
and the Company adjustments on the financial statements of the investee were conducted according
to the Company's accounting policy and accounting period. Based on the adjustment the return on
investment and other comprehensive income were recognized correspondingly. The proportion
attributed to the Company of unrecorded profit or loss of internal transactions between the
Company and associates and joint ventures was calculated and set off according to the proportion
entitled to the Company while its profit or loss of the investments were recognized correspondingly.Unrecorded internal transaction losses incurred between the Company and the investee were
recognized in full if they fell under asset impairment loss.If the Company was able to impose critical impact on the investee or to implement common
control but not constitute control due to the supplementary investment or any other reason the sum
of the cost of the additional investment and the fair value of the equity investment originally held by
the Company was re-measured as the initial investment cost under the equity method. If the original
equity investment of the Company was classified as investments in other equity instruments the
difference between the fair value and the carrying value and the cumulative gains or losses
originally included in the other comprehensive income shall be transferred from other
comprehensive income to retained earnings at the time the investment was measured under the
equity method.If the Company lost the common control or critical impact on the investee due to the disposal
of part of the equity investment or any other reason the residual equity after disposal shall be
included in the profit and loss of the current period at the difference between the fair value and the
carrying value on the date the Company lost joint control or the date of critical impact on the
investee. Other comprehensive income from the original equity investment calculated and
recognized under the equity method shall be kept account of on the same basis of the direct disposal
of relevant assets or liabilities by the investee when it was ceased to keep account of the investment
using equity method.
(4) Equity Investment Held for Sale
For the related accounting treatment to wholly or partly classify the equity investment in
associates or joint ventures as assets held for sale please refer to Section XII. V. (18).The residual equity investment not classified as assets held for sale was treated by the equity
method.If the equity investment in associates or joint ventures was classified as investment held for
sale and was no longer eligible for the criteria to be classified as assets held for sale the Company
conducted retroactive adjustment under the equity method from the date it was classified as assets
held for sale. The Company made corresponding adjustment to the financial statement classified as
in the period held for sale.(5) Impairment Test Method and Accrual Method of Provisions for Asset Impairment
For the methods to accrue assets impairment for the investments in the subsidiaries associates
and joint ventures please refer to Section XII. V. (31).
23. Investment Property
Measurement model of Investment property
Measurement by the cost method
Depreciation or amortization method
(1) Measurement Model for Investment Property
The Company adopted the cost model to conduct follow-up measurement for the investment
property. Please refer to Section XII. V. (31) for the methods to accrue assets impairment.The Company adopted the straight line method for the calculation of depreciation or
amortization of the cost of investment property after the accumulative impairment and net residual
value were deducted from it. The depreciable life and the annual depreciation rate were determined
according to the classification of the investment property the estimated economic useful life and
the estimated net residual value rate.
Category Depreciable life (year) Residual value rate (%) Annual depreciation rate (%)
Properties and buildings 20-30 5-10 4.75-3.00
Land use rights 50 - 2.00
24. Fixed Assets
(1) Recognition Conditions
Fix assets refer to tangible assets with higher unit values and a service life over one year that are held to produce goods providing
services leasing or operation and management. If the fixed assets fulfilled all the following conditions it would be recogn ized at the
actual cost at the time it was acquired: a) The economic benefits related to this fixed assets have a good chance to flow into the
enterprise. b) The cost of this fixed assets can be reliably measured. If the follow-up expenditure of fixed assets incurred was eligible
for the recognition conditions of the fixed assets the Company included it in the cost of fixed assets and the expenditure not eligible
in profit or loss for the current period when it incurred.
(2) Depreciation Method
Category Depreciation method Depreciable life Residual value rate Annual depreciation rate
Properties and buildings
Straight-line depreciation
method
20-30 5-10 4.75-3.00
Mechanical equipment
Straight-line depreciation
method
10-14 5-10 9.50-6.43
Transportation
equipment
Straight-line depreciation
method
5-8 5-10 19.00-11.25
Office equipment
Straight-line depreciation
method
5-8 5-10 19.00-11.25
Electronic equipment
Straight-line depreciation
method
5-8 5-10 19.00-11.25
Other equipment
Straight-line depreciation
method
5-8 5-10 19.00-11.25
If the provisions for asset impairment of the fixed assets had been accrued the Company
deducted the provision during the accrual of depreciation.The Company reviewed the service life the estimated net residual value and the depreciation
method of fixed assets at the end of each year. If there was any difference between the estimated
service life and the original estimation the service life of the fixed assets were adjusted.
(3) Determination Basis and Valuation and Depreciation Methods of Fixed Assets Acquired under Finance
Leases
If the Company substantially transferred all the risks and rewards related to assets to the finance assets leased this lease of the fixed
assets was recognized as the finance lease. The cost of fixed assets obtained from finance lease was determined according to the
lower amount of the fair value of the leasehold property on the date of the lease commencement and the present value of the
minimum lease payment. The depreciation policy for the accrual of the depreciation of the leasehold property for the fixed assets
acquired under the finance lease was consistent with that adopted for the Company's fixed assets. If it can be reasonably ascertained
that the ownership of the leasehold property can be obtained by the expiration of the tenancy the Company accrued the depreciat ion
within the useful life of the leasehold property; otherwise the Company accrued the depreciation within the shorter of the tenancy
and the useful life of the leasehold property.
25. Construction in Progress
(1) Classification accounting was conducted for construction in progress according to the
project admission.
(2) The standard and the time point for the construction in progress to be carried forward as
fixed assets
For the projects of construction in progress all expenses incurred before the constructed assets
reached their expected serviceable condition were recognized as the book value of the fixed assets.It included the construction expenses the original prices of the machines and equipment other
necessary expenditures incurred for the construction in progress to reach its expected serviceable
condition the borrowing costs incurred as the equity's special borrowings before it reached the
expected serviceable condition and the borrowing cost incurred as general borrowings required.The Company transferred the construction in progress to fixed assets when the engineering
installation and construction were completed and reached the expected serviceable condition. The
constructed fixed assets which reached the expected serviceable condition but did not went through
the final accounting for the completion were transferred to fixed assets at their estimated value
according to the project budget cost estimation and the actual cost of the construction project on
the date it reached the expected serviceable condition. Meanwhile its depreciation was accrued by
the depreciation policy of the Company's fixed assets. The original provisional estimate was
adjusted at actual cost after the final accounting for the completion while the original amount of
depreciation accrued was not adjusted.
26. Borrowing Costs
(1) Recognition Principle of the Capitalization of Borrowing Costs and the Period of the
Capitalization
The Company's borrowing cost incurred directly attributable to the acquisition and
construction of the assets eligible for the capitalization conditions was capitalized and included in
the cost of related assets if the following conditions were satisfied simultaneously:
① Asset expenditure has been incurred;
② Borrowing costs have been incurred;
③ The necessary acquisition construction or production activities to make the assets reach
the expected available state have begun.Other loan interests discounts or premiums and the exchange difference were included in the
profit and loss for the current period when they were incurred.If abnormal disruption were incurred for the assets eligible for the capitalization condition
during the acquisition construction and production process and the period of disruption was over 3
months continuously the capitalization of the borrowing cost was suspended.When the assets with the acquisition construction or production meeting the capitalization
conditions reached the expected available or marketable status the borrowing cost ceased to be
capitalized. The subsequent borrowing costs incurred were recognized as expenses for the current
period.
(2) The Calculation Method of the Capitalization Rate and Capitalization Amount of
Borrowing Costs
For the special borrowings borrowed for acquisition and construction or production of the
assets eligible for capitalization the capitalization amount of the interest expense of the special
borrowings was determined based on the interest expense actually incurred in the current period of
the special borrowings minus the interest income from unspent borrowing funds deposited in banks
or the amount after the return on investment was obtained from the temporary investment.If general borrowings were required for the acquisition construction or production of the
assets eligible for the capitalization condition the interest amount of the general borrowing to be
capitalized was calculated and determined as the weighted average of the asset expenditure for the
amount of the accumulative capital expenditure that exceeded the special borrowings multiplied by
the capitalization rate of the required general borrowings. The capitalization rate was determined
based on the weighted average interest rate applicable to the general-purpose borrowings.27. Biological Assets
(1) Recognition Criteria for Biological Assets
Biological asset refers to the asset consisting of living animals and plants. Biological assets
were recognized if the following conditions were satisfied simultaneously:
① The Company owned or controlled the biological asset due to the past business transaction
or matters;
② There was a high potential that the economic gains or service potential related to this
biological asset would flow in the enterprise;
③ The cost of this biological asset could be reliably measured.
(2) Classification of the Biological Asset
The biological assets of the Company are wood assets mainly seedlings. These are all
expendable biological assets.The expendable biological assets were initially measured at their costs.① The actual expenditure of the expendable biological asset before its crown cover
constituted the cost of the expendable biological assets. The follow-up expenditure incurred after its
crown cover was included in the profit or loss for the current period.
② At the time of cutting the cost of the expendable biological asset was carried down by the
weighted average method.
③ At the end of each year inspection was conducted for the expendable biological assets. If
there was evidence that the carrying value of the expendable biological assets was higher than the
net realizable value reserves for falling prices of the biological assets were accrued according to the
amount of the lower value and included in the profit or loss for the current period. If the factor for
falling prices of the biological assets no longer existed the previous reserves accrued for falling
prices were reversed. The value reversed was included in the profit or loss for the current period.
28. Oil and Gas Assets
29. Right-of-use Assets
30. Intangible Assets
(1) Pricing method Service Life and Impairment Test
1) Pricing Method of Intangible Assets
Intangible assets were recorded at the actual cost when acquired.
2) Service Life and Amortization for the Intangible Assets
① Estimation of the service life of intangible assets with limited service lives:
Item Estimated service life Basis
Land use rights 50 years Mandated use rights
Computer software 5 years The Company determined the service life with the
period of economic gains brought to the Company
as a reference.The Company reviewed the service life and amortization method of intangible asset with finite
service life at the end of each year. After review at the end of the current period the service life
and amortization method of the intangible assets had no difference with the previous estimation.② If the length of period for the intangible assets to bring economic gains for the Company
was not predictable the Company considered the asset as intangible assets with uncertain service
life. The Company reviewed the service life of the intangible assets with uncertain service life at the
end of each year. If the service life was still considered uncertain after the review the impairment
test was conducted on the balance sheet date.
③ Amortization of intangible assets
For the intangible assets with a limited service life the Company judged the service life upon
obtaining the assets. Within the service life the straight-line method system was adopted for
rational amortization. The amortization amount was included in profit or loss for the current period.The specific amortization amount was the cost amount after the deduction of estimated residual
value. If provisions for asset impairment of the intangible assets had been accrued the accumulative
amount of the accrued provisions was deducted with zero salvage value. However there were the
following exceptions: there was a third party who promised to purchase the intangible assets at the
end of their service life or the information of estimated residual value could be acquired according
to the active market while the market was likely to exist till the end of the service life of the
intangible assets.Intangible assets with uncertain service life were not amortized. The service life of the
intangible assets with uncertain service life was reviewed at the end of each year. If it was evident
that the service life of the intangible assets was limited the service life was estimated and rational
amortization was conducted systematically within the estimated service life.
(2) Accounting Policies for Internal Research and Development Costs
1) Specific Criteria for the Classification of the Research Phase and Development Phase of
Internal Research and Development Projects.① The Company assumed the data and other preparation activities processed for the further
development activity as the research phase. The expenditure of the intangible assets incurred in the
research phase was included in profit or loss for the current period.② The development activities processed after the Company completed the work of the
research phase were assumed as the development phase.
2) Specific Conditions for Capitalizing Expenditure during the Development Phase
The expenditure was recognized as intangible assets if the following conditions were satisfied
simultaneously:
① The intangible assets were completed so that it was technically feasible that the intangible
assets could be used or sold.② Intentions existed to complete the intangible assets and to use or sell them.③ The method for the intangible assets to generate economic gains included evidence that the
products produced by using the intangible assets were in the market or that there were markets for
the intangible assets of its own. If the intangible assets were to be used internally their usefulness
was proved.④ There were sufficient technologies financial resources and other resources to support the
completion of the development of the Intangible assets. Meanwhile the capability to use or sell the
intangible assets existed.
⑤ Expenditures attributable to the development phase of the intangible assets could be
reliably measured.
31. Long-term Assets Impairment
(1) Test Methods and Accounting Methods for Impairment of Long-term Equity
Investments
The Company inspected each long-term equity investment one by one on the balance sheet
date and judged whether there were signs of impairment for long-term equity investments based on
various changes in the operation policies of the investee legal environment market demand
industry and profitability. If the recoverable amount of the long-term equity investment was lower
than the carrying amount the difference between the recoverable amount and the carrying value of
the long-term equity investments was accrued as the impairment provision for the long-term equity
investments. Once the asset impairment loss was recognized it shall not be reversed in subsequent
accounting periods.
(2) Test Methods and Accounting Methods for Impairment of Investment Property
On the balance sheet date the investment property was valued at the lower between the cost and
the recoverable amount. If the recoverable amount was lower than the cost impairment provision
was accrued by the difference between the two. If the value of the investment property for which
the impairment provision had been accrued was restored the impairment provision accrued in the
previous period shall not be reversed.
(3) Test Methods and Accounting Methods for Impairment of Fixed Asse ts
The Company made judgments on all fixed assets on the balance sheet date. If there were signs
of impairment and the recoverable amount was estimated to be lower than the carrying value the
carrying value was written down to the recoverable amount and the write-down amount was
recognized as asset impairment loss and was included in profit or loss for the current period. The
corresponding provision for assets impairment was accrued at the same time. Once the asset
impairment loss was recognized it shall not be reversed in subsequent accounting periods. The
impairment provision was accrued for the full amount by the single item of fixed assets if there
were following signs:
① Fixed assets have been idle for a long time will not be put in use in the foreseeable future
and have no transfer value;
② Fixed assets are no longer usable due to technological progress and other reasons;
③ Fixed assets are still usable but the use of such assets results in a large quantity of
defective products;
④ Fixed assets have been damaged and no longer have use value or transfer value;
⑤ Fixed assets can no longer bring factual economic benefits to the Company.
(4) Test Methods and Accounting Methods for Impairment of Construction in Progress
The Company inspected the construction in progress comprehensively on the balance sheet
date. If there was evidence showing that the construction in progress had been impaired and the
recoverable amount was estimated to be lower than the carrying value the carrying value was
written down to the recoverable amount and the write-down amount was recognized as asset
impairment loss which was included in profit or loss for the current period. The corresponding
provision for assets impairment was accrued at the same time. Once the asset impai rment loss was
recognized it shall not be reversed in subsequent accounting periods. The construction in progress
shall be tested for impairment if one or several following conditions exist:
① Construction in progress has been suspended for a long time and are not expected to
resume in the next three years;
② Construction has fallen behind in terms of its performance and technology and brings huge
uncertainties to economic benefits of the Company;
1. Other circumstances sufficient to prove that the construction in progress has been impaired.
(5) Test Methods and Accounting Methods for Impairment of Intangible Assets
If the recoverable amount of intangible assets was lower than the carrying value the carrying
value of the assets was written down to the recoverable amount and the write-down amount was
recognized as asset impairment loss which was included in profit or loss for the current period. The
corresponding impairment provision for intangible assets was accrued at the same time. Once the
intangible asset impairment loss was recognized it shall not be reversed in subsequent accounting
periods. The intangible assets shall be tested for impairment if one or several following conditions
exist:
① The intangible assets have been replaced by other new technologies which results in a
major adverse impact on its ability to create economic benefits for the Company;
② The market prices of the intangible assets have declined significantly in the current period
and may not rally during the remaining years;
③ Other circumstances sufficient to prove that the carrying value of the intangible assets has
exceeded the recoverable amount.
(6) Test for Goodwill Impairment
For goodwill formed through business combinations it shall be tested for impairment at least
at the end of each year. When the Company conducted an impairment test on the related asset group
or combination of asset groups that contain goodwill the following procedures shall be taken if
there were signs of impairment in the asset group or combination of asset groups related to
goodwill:
First the Company performed an impairment test on the asset group or combination of asset
groups that do not contain goodwill calculated the recoverable amount and compared it with the
carrying value of the related assets to recognize the corresponding impairment loss. Then it
performed an impairment test on the asset group or asset group that contains goodwill and
compared the carrying value of the related asset group or combination of asset groups (including the
allocated carrying value of goodwill) with their recoverable amount; if the recoverable amount of
the related asset group or combination of asset groups was lower than the carrying value the
impairment loss was recognized by the difference. The amount of impairment loss was first
allocated to offset the carrying value of goodwill in the asset group or combination of asset groups;
then it offset the carrying value of other assets based on the proportion of the carrying value of other
assets in the asset group or combination of asset groups other than goodwill.
32. Long-term Prepaid Expense
Long-term prepaid expense accounted for the expenses with an amortization term beyond a
year of the Company which have incurred and shall be allocated to the expenses in the current
period and the subsequent periods.The long-term period prepaid expense of the Company shall be amortized equally within the
beneficial period. The period of the amortized expenses was as follows:
Item Amortization Period
Expenditure on the improvement of fixed assets leased
through operating lease
Reasonable amortization by the best expected
realization mode of economic benefits
33. Contract Liabilities
Method of determining the contract liabilities
Please refer to 16. Contract assets
34. Employee Remuneration
(1) Accounting Methods for Short-Term Remuneration
① Basic salaries of employees (wages bonus allowances and subsidies)
During the accounting period in which the employees provided services the Company
recognized the actual short-term remuneration as liabilities and included them in profit or loss for
the current period (other than other remuneration to be included in the cost of assets as required or
allowed by accounting standards.
② Employee benefit expense
The employee benefits of the Company which have incurred were included in profit or loss for
the current period or the cost of relevant assets at the actual amount incurred. If the employee
benefits were non-monetary benefits they shall be measured at fair value.③ Social insurance expenses including medical insurance expense work-related injury
insurance expense and maternity insurance expense public housing provision as well as labor
union expense and employee education expense
The employee remuneration in the accounting period in which the employees provided
services was calculated and determined by the withdrawal basis and withdrawal ratio in the
requirements of expenses paid by the Company recognized as liabilities and included in profit or
loss for the current period or the cost of relevant assets including social insurance expenses such as
medical insurance expense work-related injury insurance expense and maternity insurance expense
public housing provision as well as labor union expense and employee education expense paid by
the Company.④ Short-term paid absence
When the employees provided services and earned the right of paid absence to be exercised in
the future the Company recognized the employee remuneration related to cumulative paid absence
and measured it at the expected payable amount arising from cumulative rights that were not
exercised. During the accounting period in which an employee was actually absent the Company
recognized the employee remuneration relating to non-cumulative paid absence.⑤ Short-term profit sharing plan
The Company recognized the relevant employee benefits payable if the profit sharing plan met
all the following conditions simultaneously:
A. The corporate had legal obligations or constructive obligations to pay employee remuneration
as a result of the previous events;
B. The amount of employee benefits payable arising from the profit sharing plan could be
reliably estimated.
(2) Accounting Method for Post-employment Benefits
① Defined contribution plans
During the accounting period in which the employees provided services the Company
recognized the amounts to be deposited as calculated based on the defined contribution plan as
liabilities and included them in profit or loss for the current period or the cost of relevant assets.
Based on the defined contribution plan if all amounts to be deposited were not expected to be
paid within 12 months after the end of the annual reporting period in which the employees rendered
relevant services the employee benefits payable were measured at the discounted value of all
amounts to be deposited at the corresponding discount rate (determined by the market rate of return
for treasury bonds matched with term and currency for paying the obligation under the defined
contribution plan or the active and high-quality corporate bonds on the balance sheet date).
② Defined benefit plan
A. Determination of present value and service cost for the current period of the defined benefit
plan
Based on the projected unit credit method related demographic variables and financial
variables were estimated by using unbiased and mutually compatible actuarial assumptions the
obligations under the defined benefit plan were measured and the periods to which relevant
obligations were attributed were determined. The Company discounted obligations arising from the
defined benefit plan using the corresponding discount rate (determined by the market yields of the
treasury bonds matched with the term and currency for paying the obligations in the defined benefit
plan or of the high-quality and active corporate bonds) to determine the present value and the
current service cost of the defined benefit plan.
B. Recognition of the net liabilities or assets of the defined benefit plan
If a defined benefit plan had assets the Company shall recognize the deficit or surplus by
deducting fair value of the defined benefit plan assets from the present value of the defined benefit
plan obligations as a net liability or asset of defined benefit plan.If the defined benefit plans had surplus the Company shall measure the net profit of the
defined benefit plan according to whichever was lower between the surplus and asset ceiling of the
defined benefit plan.
C. Determination of the amount which shall be included in asset cost or loss and profit for the
current period
Service cost includes service cost for the current period service cost for the past periods and
settlement gains and losses. Specifically other than service cost for the current period that were
required or allowed to be included in asset cost other service costs shall be included in profit and
loss for the current period.The net interest of net liabilities or net assets of the defined benefit plan including interest
income of assets of the plan interest expense of obligations of the plan as well as the interest arising
from asset ceiling shall be included in profit and loss for the current period.
D. Determination of the amount that shall be included in other comprehensive income
Changes arising from the remeasurement of net liabilities or net assets of the defined benefit
plan including:
(a) Actuarial gains or loss i.e. the increase decrease in the measurements of present value of
obligations of the defined benefit plan arising from actuarial assumption and experience adjustment;
(b) Return on plan assets deducting the amounts that were included in the net interest of net
liabilities or net assets of the defined benefit plan;
(c) Changes arising from the asset ceiling deducting the amounts that were included in net
interest of the net liabilities or net assets of the defined benefit plan.The aforesaid changes arising from the remeasurement of net liabilities or net assets of the
defined benefit plan shall be directly included in other comprehensive income and shall not be
transferred back to profit and loss during the subsequent accounting periods. However the
Company may transfer these amounts recognized in other comprehensive income within its scope
of rights and interests.
(3) Accounting Method for Dismissal Benefits
If the Company offered employees with dismissal benefits the liabilities of employee
remuneration shall be recognized and included in profit or loss for the current period on the earlier
date of the two following circumstances:
① When the Company is not able to withdraw the dismissal benefits from termination of
employment or resignation persuasion unilaterally;
② When the Company recognizes the costs and expenses relevant to the restructuring
regarding dismissal benefits payment.If the dismissal benefits were not expected to be paid in full amount within 12 months after the
end of the Reporting Period the amount of the dismissal benefits shall be discounted in line with
the corresponding discount rate (determined by the market yields of the treasury bonds matched
with the term and currency for paying the obligations in the defined benefit plan or of the
high-quality and active corporate bonds). The employee benefits payable shall be measured at the
discounted amount of the dismissal benefits.
(4) Accounting Method for Other Long-Term Employee Benefits
① Benefits meeting the conditions of the defined contribution plan
If other long-term employee benefits that the Company offered to employees met the
conditions of the defined contribution plan employee benefits payable shall be measured at the
discounted value of all amounts to be deposited.
② Benefits meeting the conditions of the defined benefit plan
At the end of the Reporting Period the Company shall recognize the employee remuneration
costs arising from other long-term employee benefits as the following items:
A. Service cost;
B. Net interest of net liabilities or net assets of other long-term employee benefits;
C. Changes arising from the remeasurement of net liabilities or net assets of other long-term
employee benefits.To simplify relevant accounting treatment the total net amounts of the aforesaid items shall be
included in profit and loss for the current period or relevant asset costs.35. Lease Liabilities
36. Provisions
(1) Recognition Standard for Provisions
If an obligation relevant to contingency met all the following conditions at the same time the
Company will recognize it as provisions:
① The obligation is a present obligation assumed by the Company;
② The performance of the obligation is likely to cause economic benefits to flow out of the
Company;
③ The amount of the obligation can be reliably measured.
(2) Method of Measuring Provisions
The provisions shall be initially measured according to the optimal estimate of the necessary
expenses for the performance of the current obligation taking into consideration the risks related to
contingent events uncertainty and the time value of currency. The carrying value of provisions shall
be rechecked on each balance sheet date. If there was concrete evidence to prove that the carrying
value was not able to reflect the current optimal estimate the carrying value shall be adjusted
according to the current optimal estimate.
37. Share-based Payment
(1) Category of Share-based Payment
The Company's share-based payment includes cash-settled share-based payment and
equity-settled share-based payment.
(2) Method of Determining the Fair Value of Equity Instruments
① For shares granted to employees their fair value shall be measured at the market price of
the Company's shares and be adjusted in accordance with terms and conditions for granting shares
(excluding vesting conditions other than market conditions).
② For share options granted to employees the market price was inaccessible in many cases. If
there were no terms nor conditions similar to that of the exchange-traded option the Company shall
estimate the fair value of the granted options with the applicable model for option valuation.
(3) Grounds for Confirming the Optimal Estimation of Feasible Right Equity
Instruments
On each balance sheet date within the vesting period the Company shall make the best
estimate based on the subsequent information latest obtained such as the change in the number of
vested employees and revise the number of equity instruments that are expected to be vested in
order to make the best estimate of vested equity instruments.
(4) Accounting Treatment for the Implementation of Share-based Payment Schemes
Cash-settled share-based payment:
① For a cash-settled share-based payment if the right can be exercised immediately after the
grant the fair value of the liabilities borne by the Company shall on the grant date be included in
the relevant costs or expenses and the liabilities shall be increased accordingly. On each balance
sheet date before settlement and on the settlement date the fair value of the liabilities shall be
re-measured and the changes shall be included in profit or loss.
② For a cash-settled share-based payment if the right cannot be exercised until the vesting
period ends or until the prescribed performance conditions are met then on each balance sheet date
within the vesting period the services acquired in the current period shall based on the best
estimate of the information about the exercisable right and at the fair value of the liabilities borne
by the Company be included in the costs or expenses and the corresponding liabilities.
Equity-settled share-based payment:
① For an equity-settled share-based payment in return for services of employees if the right
can be exercised immediately after the grant the fair value of the equity instruments shall on the
grant date be included in the relevant costs or expenses and the capital reserve shall be increased
accordingly.
② For an equity-settled share-based payment in return for employee services if the right
cannot be exercised until the vesting period ends or until the prescribed performance conditions are
met then on each balance sheet date within the vesting period the services acquired in the current
period shall based on the best estimate of the number of vested equity instruments be included in
the costs or expenses and capital reserves at the fair value of the equities instruments on the grant
date
(5) Accounting Treatment for the Modification of Share-Based Payment Schemes
When the Company modifies a share-based payment scheme if the modification increases the
fair value of the equity instruments granted the increase in the services acquired shall be recognized
accordingly according to the increase in the fair value of the equity instruments; if the modification
increases the number of equity instruments granted the fair value of the increased equity
instruments shall be recognized accordingly as the increase in the services acquired. The increase in
the fair value of the equity instruments refers to the difference between the fair values of the equity
instruments before and after the modification on the modification date. If the modification reduces
the total fair value of the share-based payment or any other method not conducive to the employees
is adopted to modify the terms and conditions of the share-based payment scheme the accounting
treatment of the services acquired would continue as if such change had never occurred unless the
Company cancels some or all of the granted equity instruments.
(6) Accounting Treatment for the Termination of Share-Based Payment Schemes
If the Company canceled the granted equity instruments or settles the granted equity
instruments (not including those canceled due to failure to meet vesting conditions) during the
vesting period:
① The cancellation or settlement shall be processed as the vested right and the amount to be
recognized within the remaining vesting period originally shall be recognized immediately.
② All payments made to employees at the time of cancellation or settlement was treated as
payments for equity repurchase and the proportion of the repurchase amount above the fair value of
the equity instrument on the repurchase date was included in the expenses for the current period.If the Company repurchased an equity instrument in which the exercisable right has been
exercised its owners' equity was reduced; the proportion of the repurchase amount above the fair
value of the equity instrument on the repurchase date was included in the profit or loss for the
current period.
38. Preference Shares Perpetual Bonds and Other Financial Instruments
39. Revenue
The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on Industry
Information Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.Revenue recognition principles and measurement methods
Applicable from 1 January 2020
(1) General Principles
Revenue is the total inflow of economic benefits generated in the Company's day-to-day
activities that will result in an increase in shareholders' equity and are unrelated to the capital
contributed by shareholders.The Company shall recognize revenue when the performance obligations under the contracts
are fulfilled that is when the customers obtain the control of related goods. Obtaining control of
related goods refers to that customers can control the use of the goods and obtain almost all the
economic benefits from the goods.If a contract contains two or more performance obligations the Company shall on the
inception date of the contract allocate the transaction price to each performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services
promised by each performance obligation and measure the revenue on the basis of the transaction
price allocated to each performance obligation.Transaction price is the amount of consideration to which the Company expects to be entitled
in exchange for transferring goods or services to a customer excluding amounts collected on behalf
of third parties. When determining a contract transaction price if there is a variable consideration
the Company shall determine the best estimate of the variable consideration based on the expected
value or the most likely amount and recognize the transaction price only to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the relevant uncertainty is resolved. If a contract contains a significant financing
component the Company will determine the transaction price on the basis of the amount payable in
cash when the customer obtains control of the goods and use the effective interest method to
amortize the difference between the transaction price and the contract consideration during the
contract period. If the interval between the transfer of control and the payment by the customer does
not exceed one year the Company will not consider the financing component therein.If one of the following conditions is met it is an obligation performed within a certain period
of time; otherwise it is treated as performed at a point in time:
① The customer simultaneously received and consumed the benefits provided by the
Company's performance as the Company performed obligation.
② The customer could control the goods as they are created during the Company's
performance.③ The goods produced by the Company's performance had no alternative use and the
Company had the right to collect payment for performance completed to date during the entire
contract period.
For a performance obligation performed within a certain period of time the Company
recognized revenue in accordance with the progress of performance during that period except when
the progress could not be reasonably determined. The Company determined the progress of the
performance of the service provided in accordance with the input method (or output method). When
the performance progress could not be reasonably determined and the Company's incurred costs
were expected to be compensated the revenue was recognized according to the amount of the
incurred costs until the performance progress could be reasonably determined.
For a performance obligation performed at a certain point in time the Company recognized
revenue at the point when the customer obtained control of the relevant goods. When judging
whether the customer has obtained control of goods or services the Company considered the
following indicators:
① The Company had a present right to receive payment for the goods or services i.e. the
customer had a present obligation to pay for the goods.② The Company had transferred the legal title of the goods to the customer i.e. the customer
had obtained the legal title of the goods.③ The Company had transferred physical possession of the goods to the customer i.e. the
customer had taken physical possession of the goods.④ The Company had transferred primary risks and rewards of ownership of the goods to the
customer i.e. the customer had obtained the primary risks and rewards of ownership of the goods.⑤ The customer had accepted the goods.
(2) Specific Methods
The specific methods of the Company's revenue recognition are as follows:
In the construction and decoration business since the customer could control the assets under
construction during the obligation performance of the Company the Company recognized them as a
performance obligation performed within a certain period and recognized revenue in accordance
with the progress of performance except when the progress could not be reasonably determined.The Company determined the progress of the performance of the service provided based on the
incurred costs in accordance with the input method. When the performance progress could not be
reasonably determined and the Company's incurred costs were anticipated to be compensated the
revenue was recognized according to the amount of the incurred costs until the performance
progress could be reasonably determined. If the contract cost could not be recovered it was
recognized as the current cost immediately when incurred and no contract revenue was recognized.If the aggregate cost of the contract was likely to exceed the gross revenue an anticipated loss of
the contract was formed included in provisions and recognized as the current cost.In the merchandise sale business the sale contract between the Company and the customer
contains the performance obligation for the transfer of goods such as building decoration materials
which belongs to the performance obligation at a point in time. The Company had delivered the
goods to the customer in accordance with the contract and the customer had accepted the goods.The payment had been recovered or the receipt voucher had been obtained and the relevant
economic benefits were likely to flow in. The customer had obtained control of the relevant goods.The following revenue accounting policies are applicable for 2019 and the prior years.
(1) Sales Revenue
The revenue was recognized when the Company had transferred the primary risks and rewards
of the ownership of the goods to the acquirer and neither reserved the continued management r ights
usually associated with the ownership nor effectively controlled the sold goods. The amount of
income could be reliably measured the economic benefits relevant to the transaction were likely to
flow into the Company and the relevant costs incurred or to be incurred could be reliably measured.
(2) Revenue from Provided Services
① The results of the provided services could be reliably estimated
If the results of the transaction of the provided services could be reliably estimated on the
balance sheet date the percentage of completion method was used to recognize the revenue from
provided services.The results of the provided services could be reliably estimated only when the following
conditions are met at the same time:
A. The amount of revenue could be reliably measured.
B. The relevant economic benefits were likely to flow into the Company.
C. The completion schedule of the transaction could be reliably determined.
D. The cost incurred or to be incurred during the transaction could be reliably measured.
The Company determined the completion schedule of the service transaction in accordance
with the proportion of the incurred costs to the total budgeted costs. When the Company's service
had not been completed on the balance sheet date the service revenue in the current period was
recognized in accordance with the amount of the contract amount multiplied by the completion
schedule after deducting the accumulated service revenue from the previous accounting period; at
the same time the service costs incurred in the current period was carried forward. If the service
had been completed and had not yet been finally settled the service revenue in the current period
when the service was completed was recognized at the amount after deducting the accumulated
revenue from the provided service in the previous accounting period from the contract amount; at
the same time the service costs incurred in the current period was carried forward. The difference
between the final settlement amount and the contract amount at the time of final settlement was
adjusted at the final settlement.② The results of the provided services could not be reliably estimated.If the results of the services provided by the Company could not be reliably estimated on the
balance sheet date the situations were dealt with as follows:
A. If the service cost incurred was anticipated to be compensated the service revenue was
recognized at the amount of service cost incurred and the service cost was carried forward at the
same amount.
B. If the service cost incurred was not anticipated to be compensated the service cost incurred
was included in profit or loss and no service revenue was recognized.
(3) Revenue from the Transfer of Asset Use Rights
The Company recognized revenue when the economic benefits relevant to the transaction were
likely to flow into the Company and the amount of revenue could be reliably measured.
40. Government Grants
(1) Recognition of Government Grants
Government grants were recognized if the following conditions were met simultaneously:
① The Company could meet the conditions on government grants;
② The Company could receive government grants.
(2) Measurement of Government Grants
Government grants were measured at the amount received or receivable if they were monetary
assets. Non-monetary government grants were measured at fair value; if the fair value could not be
reliably obtained they were measured at the nominal amount.
(3) Accounting Processing of Government Grants
① Government grants related to assets
The government grants obtained by the Company for acquisition and construction or to form
long-term assets in other ways were classified as government grants related to assets. Government
grants related to assets were recognized as deferred income and were included in profit or loss in
stages in accordance with a reasonable and systematic method during the useful life of the
underlying assets. Government grants measured at nominal amount were directly recognized as
profit or loss for the current period. If the underlying assets were sold transferred scrapped or
damaged before the end of the useful life the unallocated balance of the relevant deferred income
was transferred to the profit or loss for the period of assets disposal.② Government grants related to income
Government grants other than government grants related to assets were classified as
government grants related to income. Government grants related to income were accounted for in
accordance with the following regulations based on the situation:
If the grant was used to compensate the Company's related costs or losses in subsequent
periods it was recognized as deferred income and was included in the profit or loss for the current
period during the period when the related costs or losses were recognized;
If the grant was used to compensate the Company's related cost or losses incurred it was
included in the profit or loss for the current period directly.
For government grants containing parts related to assets and parts related to income at the
same time the different parts were accounted for separately; those that were difficult to distinguish
were classified as government grants related to income as a whole.Government grants related to the day-to-day activities of the Company was included in other
income in accordance with the substance of economic activities. Government grants not related to
the day-to-day activities of the Company was included in non-operating income and expenses.③ Policy loan interest subsidies
If the fiscal system allocated the funds of interest subsidies to the lending bank and the
lending bank provided loans to the Company at a policy prime interest rate the actual loan amount
received was recognized as the book value of the loan and the relevant borrowing costs was
calculated in accordance with the loan principal and the policy prime interest rate.If the fiscal system allocated the funds of interest subsidies to the Company directly the
Company reduced the corresponding interest subsidies against relevant borrowing costs.
④ Refund of government grants
When the recognized government grants needed to be refunded if the carrying value of the
relevant asset was reduced at the initial recognition the carrying value of the asset was adjusted; if
there was a relevant deferred income balance the carrying balance of the relevant deferred income
was reduced and the excess was included in the profit or loss for the current period; in other cases
the refund was included in the profit or loss for the current period directly.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Based on the temporary differences between the carrying value of assets and liabilities on the
balance sheet date and the tax basis the Company generally recognizes and measures deferred
income tax liabilities or deferred income tax assets in accordance with the impact of taxable
temporary differences or deductible temporary differences on income tax through the balance sheet
liability method. The Company did not discount deferred income tax assets and deferred income tax
liabilities.
(1) Recognition of Deferred Income Tax Assets
For deductible temporary differences the impact on income tax was calculated at the income
tax rate during the anticipated reverse and the impact was recognized as deferred income tax assets
but limited by the amount of future taxable income that the Company was likely to obtain to deduct
the deductible temporary differences deductible losses and tax deductions.The impact of deductible temporary differences on income tax due to the initial recognition of
assets or liabilities was not recognized as deferred income tax assets in transactions or matters that
had the following characteristics at the same time:
① The transaction was not a business combination;
② Neither accounting profits nor taxable income (or deductible losses) were affected when
the transaction occurred.Only when the deductible temporary differences related to investments in subsidiaries
affiliated companies and joint ventures met the following two conditions at the same time its
impact on income tax was recognized as deferred income tax assets:
① It was probable that the temporary difference would reverse in the foreseeable future;
② It was likely to obtain taxable income in the future that could be used to offset against the
deductible temporary differences.On the balance sheet date if there was conclusive evidence that it was probable that sufficient
taxable income would be available to offset against the deductible temporary differences in t he
future the deferred income tax assets that had not been recognized in the previous periods were
recognized.On the balance sheet date the Company reviewed the carrying value of deferred income tax
assets. If it was no longer probable that sufficient taxable profits would be available in the future to
utilize the benefit of deferred tax assets the carrying value of deferred income tax assets was
written down. Such write-downs was reversed when it became probable that sufficient taxable
profits would be available.
(2) Recognition of Deferred Income Tax Liabilities
The impact of all taxable temporary differences on income tax of the Company was measured
at the income tax rate during the anticipated reverse and the impact was recognized as deferred
income tax liabilities except in the following situations:
① The impact of taxable temporary differences arising from the following transactions or
items on income tax was not recognized as deferred income tax liabilities:
A. Initial recognition of goodwill;
B. The initial recognition of assets or liabilities arising from a transaction with the following
characteristics: the transaction was not a business combination and it affected neither accounting
profits nor taxable income or deductible losses when the transaction occurred.
② For the Company's taxable temporary differences related to investments in subsidiaries
joint ventures and affiliated companies the amount of its impact on income tax shall be generally
recognized as deferred income tax liabilities except the following two conditions are met at the
same time:
A. The Company could control the temporary difference reversal time;
B. It was probable that the temporary difference would not reverse in the foreseeable future.
(3) Recognition of Deferred Income Tax Liabilities or Assets Involved in Special
Transactions or Events
① Deferred income tax liabilities or assets involved in business combinations
For the taxable temporary differences or deductible temporary differences arising from
business combinations not under common control adjustments were made to the goodwill
recognized in business combinations along with the recognition of deferred income tax liabilities or
deferred income tax assets and the related deferred income tax expense (or income).② Items directly included in owners' equity
The income tax for the current period and deferred income tax relating to the transactions or
events directly included in owners' equity were included in owners' equity. The transactions or
events included in owners' equity relating to the impact of temporary difference on income tax
included: other comprehensive income such as changes in the fair value of other debt investments
adjustments to retained income brought forward through the changes in accounting policies using
retrospective application or modification of major accounting error in the previous periods using
retrospective restatement and hybrid financial instruments that include liabilities and equity
included in owners' equity at initial recognition.③ Recoverable loss and tax credit
A. Recoverable loss and tax credit arising from the Company's operations
Deductible loss refers to the loss calculated and recognized in accordance with the tax law
stipulates that can be compensated by taxable revenue. The undistributed deficit (deductible loss)
and tax credit in the following years that could be carried forward in accordance with the tax law
stipulates were recognized as deductible temporary differences. When it was probable that
sufficient taxable profits would be available for recoverable losses or tax credit in the future the
corresponding deferred income tax assets were recognized to the extent of the expected taxable
revenue together with deducting the income tax expense in the profit statement for the current
period.
B. The undistributed deficit of the acquiree arising from business combinations that can be
compensated
In business combinations the deductible temporary difference of the acquiree acquired by the
Company which doesn't meet the conditions for recognition of deferred income tax assets was not
recognized. Within 12 months after the date of acquisition if new or more information was
available and suggested that the relevant information of the date of acquisition already existed and
the deductible temporary differences of the acquiree at the date of acquisition was expected to bring
economic benefits the related deferred income tax assets were recognized and goodwill was
eliminated. If goodwill was not sufficient for elimination the shortfall was recognized as the profit
or loss for the current period. Excluding the foregoing circumstances the deferred income tax assets
relating to business combinations were recognized and included in the profit or loss for the current
period.④ Temporary difference arising from combination and offsetting
If a temporary difference arose between the carrying value of assets and liabilities in the
consolidated balance sheet and their tax bases in the taxable entity to which they belong as a result
of offsetting unrealized internal sales profit or loss the deferred income tax assets or deferred
income tax liabilities were recognized in the consolidated balance sheet while adjusting the income
tax expense in the consolidated profit statement except for the transactions or events directly
included in owners' equity and the deferred income tax relating to business combinations.
⑤ Equity-settled share-based payment
If the expenditure related to share-based payment could be deducted before tax under the tax
law stipulates during the period in which the cost was recognized in accordance with the
accounting requirements the Company calculated and determined the basis of taxation and
temporary difference based on the estimated amount that could be deducted before tax according to
the information available at the end of the accounting period and recognized the related deferred
income tax if it met the conditions for recognition. Among which the estimated amount that can be
deducted before tax in the future exceeded the costs relating to share-based payment recognized in
accordance with the accounting requirements the surplus impact of income tax shall be directly
included in owners' equity.
42. Leases
(1) Accounting Treatment Method for Operating Lease
① When acting as a lessee of operating lease the Company included the rental expenditure of
operating lease in profit or loss for the current period based on the straight-line method or in
accordance with the consumption of operating lease in all stages during the lease term. If the lessor
provided leases with a rent-free period the Company allocated the total rent in the entire lease term
including the rent-free period based on the straight-line method or in accordance with the
consumption of operating lease and recognized the rental expense and the corresponding liabilities
in the rent-free period. If the lessor undertook partial expenses of the lessee the Company allocated
the balance of rental expenses within the lease term after deducting the expenses fro m the total
rental expense.The initial direct cost was included in profit or loss for the current period. If there was any
agreement or rent it was included in profit or loss for the current period when actually incurred.② When acting as a lessor of operating lease the Company recognized the rent received as
income within the lease term based on the straight-line method. If the lessor provided leases with a
rent-free period the lessor allocated the total rent in the entire lease term including the rent-free
period based on the straight-line method or any other reasonable method and also recognized rental
income in the rent-free period. If the lessor undertook partial expenses of the lessee the Company
allocated the balance of rental income within the lease term after deducting the expenses from the
total rental income.The initial direct cost was included in profit or loss for the current period. If it was a large
amount it shall be capitalized and included in stages in profit or loss for the current period within
the entire operating lease term on the same basis with the recognition of rental income. If there was
any agreement or rent it was included in profit or loss for the current period when actually incurred.(2) Accounting Treatment of Finance Lease
① When the Company acted as the lessee of the finance lease the lower of the fair value of
the leased assets and the present value of the minimum lease payment on the lease commencement
date was taken as the book value of the leased assets the minimum lease payment was taken as the
book value of the long-term payables and the difference thereof was taken as the unrecognized
financing expense. In each period of the lease term the effective interest method was adopted to
apportion which was recognized as the current financing expense and included into the finance
costs.The initial direct expenses incurred was included in the value of the leased assets.The Company adopted a depreciation policy consistent with its own depreciable assets during
the accrual of the depreciation of the finance leased assets and the depreciation period was
determined by the lease contract. If fixed asset could be reasonably ascertained that the ownership
of the asset leased was obtained by the expiration of the tenancy the asset would be depreciated
over its useful life on the lease commencement date; if not the asset would be depreciated over the
shorter of the tenancy and the useful life of the leased asset.② When the Company acted as the lesser of the finance lease the sum of the minimum lease
receivable amount and the initial direct expense on the lease commencement date was taken as the
receivables of the finance lease amount and recorded in the long-term receivables of the balance
sheet and the unguaranteed residual value was recorded. The difference between the sum of the
minimum lease receivable amount initial direct expense and unguaranteed residual value and the
sum of its present value was taken as unrealized financing revenue which was recognized as lease
revenue in each period of the lease term by the effective interest method and included into other
business revenue.
43. Other Important Accounting Policies and Accounting Estimates
Repurchase of the Company's shares
(1) If the Company had obtained approval to reduce the capital by acquiring the Company’s
shares through legal procedures the share capital was reduced in accordance with the total face
value of the shares canceled and the owners' equity was adjusted in accordance with the difference
between the price paid for repurchasing the shares (including transaction costs) and the face value
of the shares. For the part exceeding the total face value capital reserves (share capital premium)
surplus reserves and retained earnings were reduced sequentially. For the part below the total face
value the capital reserves (share capital premium) were increased.
(2) The shares repurchased by the Company had been managed as treasury shares before they
were canceled or transferred and all expenses for repurchasing shares had been transferred to the
cost of treasury shares.
(3) When treasury shares had been transferred the part of the transfer income that was higher
than the cost of treasury shares increased capital reserves (share capital premium). The part that was
lower than the cost of treasury shares reduced capital reserves (share capital premium) surplus
reserves retained earnings.44. Changes in Important Accounting Policy and Accounting Estimates
(1) Key Changes to Accounting Policies
√ Applicable □N/A
Contents of and reasons for the changes to
accounting policies
Approval procedure Remarks
The New Revenue Standards were
implemented from January 1 2020.
Deliberated and approved at the 5th
Meeting of the 6th Board of Directors on
April 23 2020
① The Ministry of Finance issued the Accounting Standard for Business Enterprises No. 14:
Revenues (C.K. [2017] No. 22) (hereinafter referred to as "New Revenue Standards") on 5 July
2017. Domestic listed companies were required to implement the New Revenue Standards from 1
January 2020. The Company implemented the New Revenue Standards from 1 January 2020 and
adjusted the relevant content of the accounting policy as detailed in Note III. 28.Under the requirements of the New Revenue Standards the amount of retained earnings and
other relevant items in the financial statements at the beginning of the first year of implementation
(i.e. 1 January 2020) was adjusted in accordance with the cumulative impact of the first
implementation of the standard and the comparable period information was not adjusted. When
implementing the New Revenue Standards the Company only adjusted the cumulative impact of
contracts that had not been completed on the first implementation date.② The Ministry of Finance issued the Interpretation No. 13 of the Accounting Standard for
Business Enterprises on 10 December 2019. The Company implemented this interpretation on 1
January 2020 and the previous years were not included retrospectively.The cumulative impact of the above accounting policies is as follows:
Due to the implementation of the New Revenue Standards the Company's consolidated
financial statements were adjusted accordingly. As at 1 January 2020 accounts receivable were
RMB-9983775360.05 contract assets RMB10177545958.11 deferred income tax assets
RMB-3343794.18 contract liabilities RMB896828971.85 advances from customers
RMB-790724499.17 and other current liabilities RMB45145633.54. The relevant adjustments
affected the equity of the Company as the parent’s shareholders in the Company’s consolidated
financial statements at RMB36125919.30 of which surplus reserves were RMB1761383.21 and
retained earnings were RMB34339607.55. The amount of non-controlling interests affected was
RMB3075706.90. The financial statements of the Company as the parent were adjusted
accordingly. As at 1 January 2020 accounts receivable were RMB-6521147899.75 contract
assets RMB6541870055.17 deferred income tax assets RMB-3108323.31 contract liabilities
RMB299820916.43 advances from customers RMB-325775470.52 and other current liabilities
RMB25954554.09. The relevant adjustments affected the equity of the Company as the parent's
shareholders in the financial statements at RMB17613832.11 of which surplus reserves were
RMB1761383.21 retained earnings were RMB15852448.90.
The above accounting policy changes were deliberated and approved at the 5th Meeting of the
6th Board of Directors on 23 April 2020.
(2) Changes in Significant Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year (2020) when the New
Accounting Standards Governing Revenue and Leases Were First Adopted
Applicable.
Indicate whether any balance sheet item at the beginning of the year requires adjustment.√ Yes □ Not
Consolidated balance sheet:
Unit: RMB
Item 31 December 2019 1 January 2020 Adjustment
Current assets：
Monetary assets 6077758993.30 6077758993.30
Settlement reserve
Loans to other banks
and financial institutions
Held-for-trading
financial assets
1694650654.74 1694650654.74
Derivative financial
assets
Notes receivable 4365558567.45 4365558567.45
Accounts receivable 22003095138.84 12019319778.79 -9983775360.05
Receivables financing 261530861.26 261530861.26
Prepayments 287524499.91 287524499.91
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 248803300.64 248803300.64
Including: Interest
receivable
Dividends
receivable
Financial assets
purchased under resale
agreements
Inventories 101344129.28 101344129.28
Contract assets 10177545958.11 10177545958.11
Assets held for sale
Current portion of
non-current assets
31381819.35 31381819.35
Other current assets 116384039.46 116384039.46
Total current assets 35188032004.23 35381802602.29 193770598.06
Non-current assets：
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables 1438636412.30 1438636412.30
Long-term equity
investments
22838423.66 22838423.66
Investments in other
equity instruments
Other non-current
financial assets
444022000.00 444022000.00
Investment property 78250561.70 78250561.70
Fixed assets 910175452.03 910175452.03
Construction in progress 71905579.25 71905579.25
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 109105821.09 109105821.09
Development costs
Goodwill 435818777.74 435818777.74
Long-term prepaid
expense
157443245.55 157443245.55
Deferred income tax
assets
415401109.41 412057315.23 -3343794.18
Other non-current assets 201762268.01 201762268.01
Total non-current assets 4285359650.74 4282015856.56 -3343794.18
Total assets 39473391654.97 39663818458.85 190426803.88
Current liabilities：
Short-term borrowings 875691128.75 875691128.75
Borrowings from the
central bank
Loans from other banks
and financial institutions
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 4602520476.92 4602520476.92
Accounts payable 13279769499.13 13279769499.13
Advances from
customers
790724499.17 -790724499.17
Contract liabilities 896828971.85 896828971.85
Financial assets sold
under repurchase agreements
Customer deposits and
deposits from other banks
and financial institutions
Payables for acting
trading of securities
Payables for
underwriting of securities
Employee benefits
payable
1748073732.96 1748073732.96
Taxes and levies
payable
256606598.88 256606598.88
Other payables 593947128.96 593947128.96
Including: Interest
payable
Dividends
payable
6620000.00 6620000.00
Fees and commissions
payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
22000000.00 22000000.00
Other current liabilities 1062569828.91 1107715462.45 45145633.54
Total current liabilities 23231902893.68 23383152999.90 151250106.22
Non-current liabilities：
Insurance contract
reserve
Long-term borrowings 838561722.30 838561722.30
Bonds payable
Including: Preference
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
liabilities
2931338.35 2931338.35
Other non-current
liabilities
Total non-current liabilities 841493060.65 841493060.65
Total liabilities 24073395954.33 24224646060.55 151250106.22
Owners’ equity：
Share capital 2676408689.00 2676408689.00
Other equity instruments
Including: Preference
shares
Perpetual
bonds
Capital reserves 342175389.87 342175389.87
Less: Treasury shares 132069000.00 132069000.00
Other comprehensive
income
57504092.23 57504092.23
Specific reserve
Surplus reserves 1358670354.99 1360431738.20 1761383.21
General reserve
Retained earnings 10853403316.80 10887742924.35 34339607.55
Total equity attributable to
owners of the Company as
the parent
15156092842.89 15192193833.65 36100990.76
Non-controlling
interests
243902857.75 246978564.65 3075706.90
Total owners’ equity 15399995700.64 15439172398.30 39176697.66
Total liabilities and owners’
equity
39473391654.97 39663818458.85 190426803.88
Notes to the adjustments:
Balance sheet of the Company as the parent:
Unit: RMB
Item 31 December 2019 1 January 2020 Adjustment
Current assets：
Monetary assets 3236414236.21 3236414236.21
Held-for-trading
financial assets
1177233688.22 1177233688.22
Derivative financial
assets
Notes receivable 2720966717.92 2720966717.92
Accounts receivable 15070584579.15 8549436679.40 -6521147899.75
Receivables financing 227611894.42 227611894.42
Prepayments 67179176.34 67179176.34
Other receivables 369029544.53 369029544.53
Including: Interest
receivable
Dividends
receivable
40000000.00 40000000.00
Inventories 2108652.15 2108652.15
Contract assets 6541870055.17 6541870055.17
Assets held for sale
Current portion of
non-current assets
Other current assets 141935.84 141935.84
Total current assets 22871270424.78 22891992580.20 20722155.42
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity
investments
2450189252.52 2450189252.52
Investments in other
equity instruments
Other non-current
financial assets
444022000.00 444022000.00
Investment property 92392476.23 92392476.23
Fixed assets 725719586.11 725719586.11
Construction in progress 50987676.95 50987676.95
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 31263899.40 1263899.40
Development costs
Goodwill
Long-term prepaid
expense
36115310.40 36115310.40
Deferred income tax
assets
269961767.22 266853443.91 -3108323.31
Other non-current assets 90447503.15 90447503.15
Total non-current assets 4191099471.98 4187991148.67 -3108323.31
Total assets 27062369896.76 27079983728.87 17613832.11
Current liabilities：
Short-term borrowings 454870134.35 454870134.35
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 2524818850.29 2524818850.29
Accounts payable 8227541063.77 8227541063.77
Advances from
customers
325775470.52 -325775470.52
Contract liabilities 299820916.43 299820916.43
Employee benefits
payable
1377238718.10 1377238718.10
Taxes and levies
payable
94928342.32 94928342.32
Other payables 489198564.99 489198564.99
Including: Interest
payable
Dividends
payable
6620000.00 6620000.00
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
Other current liabilities 810122476.37 836077030.46 25954554.09
Total current liabilities 14304493620.71 14304493620.71
Non-current liabilities：
Long-term borrowings
Bonds payable
Including: Preference
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
liabilities
185053.23 185053.23
Other non-current
liabilities
Total non-current liabilities 185053.23 185053.23
Total liabilities 14304678673.94 14304678673.94
Owners’ equity：
Share capital 2676408689.00 2676408689.00
Other equity instruments
Including: Preference
shares
Perpetual
bonds
Capital reserves 437549701.78 437549701.78
Less: Treasury shares 132069000.00 132069000.00
Other comprehensive
income
Specific reserve
Surplus reserves 1358670354.99 1360431738.20 1761383.21
Retained earnings 8417131477.05 8432983925.95 15852448.90
Total owners’ equity 12757691222.82 12775305054.93 17613832.11
Total liabilities and owners’
equity
27062369896.76 27079983728.87 17613832.11
Notes to the adjustments:
(4) Retrospective Adjustments to Comparative Data of the Prior Period due to the First Adoption of the
New Accounting Standards Governing Revenue and Leases since 2020
□ Applicable √ Not applicable
45. Other Information
VI Taxation
1. Principal Taxes and Tax Rates
Tax Tax base Tax rate
Value added tax (VAT) Taxable revenue 13% 9% 6% and 3%
Urban maintenance and construction tax Circulation tax 7%
Corporate income tax Taxable income 25% 15% and 20%
Education surcharges Circulation tax 5%
Taxpayers with different corporate income tax rates are as follows:
Taxpayer Income tax rate
HBA 21.00% 8.84% 6.00% 5.50% and 19.00%
Gold Mantis (Vietnam) 20.00%
Gold Mantis International 16.50%
Russia Gold Mantis 15.50%
Gold Mantis (HK) 16.50%
Gold Mantis (Cambodia) 20.00%
Gold Mantis International Development 10.00%
Gold Mantis (Lanka) 28.00%
GMI Construction 30.00%
Gold Mantis (CNMI) 21.00%
M+ 10.00%
2. Tax Preferences
1. Tax Preferences
(1) Income tax
On 2 December 2020 the Company was recognized as a high-tech enterprise by the Jiangsu
Provincial Department of Science and Technology the Department of Finance of Jiangsu Province
and Jiangsu Provincial Tax Service of State Taxation Administration. From 2020 to 2022 the
Company revenue tax shall be levied at a reduced rate of 15%.
On 2 December 2020 Gold Mantis Curtain Wall a wholly-owned subsidiary of the Company
was recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2020 to 2022 the revenue tax of Gold Mantis Curtain Wall shall
be levied at a reduced rate of 15%.
On 2 December 2020 Meiruide a wholly-owned subsidiary of the Company was recognized as
a high-tech enterprise by the Jiangsu Provincial Department of Science and Technology the
Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State Taxation
Administration. From 2020 to 2022 the revenue tax of Meiruide shall be levied at a reduced rate of
15%.
On 2 December 2020 Refined Decoration & Technology a subsidiary of Gold Mantis
Prefabricated Construction Technology which is a holding subsidiary of the Company was
recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2020 to 2022 the revenue tax of Refined Decoration &
Technology shall be levied at a reduced rate of 15%.On 6 December 2019 Gold Mantis Landscape a wholly-owned subsidiary of the Company was
recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2019 to 2021 the revenue tax of Gold Mantis Landscape shall
be levied at a reduced rate of 15%.In accordance with the Notice on Implementing Inclusive Tax Credit Policies for Small and
Micro Enterprises (C.SH. [2019] No. 13) from the Ministry of Finance and the State Taxation
Administration from 1 January 2019 to 31 December 2021 the annual taxable revenue of small
low-profit enterprises with a value of less than RMB1 million (including RMB1 million) shall be
included in the taxable revenue at a reduced rate of 25% and the corporate revenue tax shall be
levied at the tax rate of 20%. The part that the annual taxable revenue exceeds RMB1 million but
not more than RMB3 million shall be included in the taxable revenue at a reduced rate of 50% and
the corporate revenue tax shall be levied at the tax rate of 20%. Suzhou Meiruide Construction
Decoration Co. Ltd. a subsidiary of Meiruide belonged to a small low-profit enterprise this year
and enjoyed this preferential tax policy.
(2) Value-added tax
In accordance with the Notice on Policies Relevant to Deepening VAT Reform (Notice No. 39
of 2019 of the Ministry of Finance the State Taxation Administration and the General
Administration of Customs) and the Notice on Items Relevant to Deepening VAT Reform (Notice
No. 14 of 2019 of the State Taxation Administration) from 1 April 2019 to 31 December 2021
taxpayers of the production and living services industry shall be allowed to add 10% of the current
deductible input tax to deduct the tax amount payable. The eligible subsidiaries of the Company
including Jinpu No. 9 Xi’an Jinchuang Archi-Feeling Design Home Decoration E-commerce
enjoyed the additional deduction policy of input tax.
3. Others
Other taxes were calculated and paid in accordance with relevant national and local
regulations.VII Notes to the Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Closing balance Opening balance
Cash on hand 1518895.79 2317047.77
Bank deposits 5271477855.63 5097879607.91
Other monetary assets 1099635094.30 977562337.62
Total 6372631845.72 6077758993.30
Including: Total amount deposited
overseas
545795284.34 480397106.87
Total amount of which the
use is restricted with respect to collateral
pledge being frozen etc.
16564171.89 25511610.47
Other notes:
Of the closing balance of bank deposits term deposits amounted to RMB316061411.05 and
the total frozen amount with respect to lawsuits stood at RMB16564171.89. Of the closing balance
of other monetary assets security deposits for bank acceptance notes amounted to
RMB965388644.75 security deposits for bank guarantees amounted to RMB126167670.25 and
security deposits for salaries of peasant-workers amounted to RMB6820776.65. Other than the
aforesaid the closing balance of monetary assets contained no amounts of which the use was
restricted with respect to collateral pledge being frozen etc. and which were exposed to a potential
default risk.
2. Held-for-trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit
or loss
2172086741.05 1694650654.74
Including:
Investments in debt instruments 2172086741.05 1694650654.74
Including:
Total 2172086741.05 1694650654.74
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Closing balance Opening balance
Other notes:
4. Notes Receivable
(1) Notes Receivable by Type
Unit: RMB
Item Closing balance Opening balance
Trade acceptance notes 8834516728.65 4365558567.45
Total 8834516728.65 4365558567.45
Unit: RMB
Type
Closing balance Opening balance
Gross amount
Allowance for
doubtful account
Carrying
amount
Gross amount
Allowance for
doubtful account
Carrying
amount
Amount
Percenta
ge
Amount
Allowanc
e
percentag
e
Amount
Percentag
e
Amount
Allowanc
e
percentag
e
Including:
Notes receivable for
which the allowances
for doubtful accounts
are established on the
grouping basis
901481
2988.42
100.00%
180296
259.77
2.00%
8834516
728.65
4409655
118.63
100.00%
44096551.
18
1.00%
4365558
567.45
Including:
Trade acceptance
notes
901481
2988.42
100.00%
180296
259.77
2.00%
8834516
728.65
4409655
118.63
100.00%
44096551.
18
1.00%
4365558
567.45
Total
901481
2988.42
100.00%
180296
259.77
2.00%
8834516
728.65
4409655
118.63
100.00%
44096551.
18
1.00%
4365558
567.45
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
Entity
Closing balance
Gross amount
Allowance for doubtful
account
Allowance percentage Reason for allowance
Allowances for doubtful accounts established on the grouping basis : RMB180296259.77
Unit: RMB
Item
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Trade acceptance notes 9014812988.42 180296259.77 2.00%
Total 9014812988.42 180296259.77 --
Grouping basis:
Allowances for doubtful accounts established on the grouping basis :
Unit: RMB
Item Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful notes receivable are established using the general model of expected credit loss please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Type Opening balance
Change in the current period
Closing balance
Established Reversed Written off Others
Allowances for
doubtful trade
acceptance notes
44096551.18 136199708.59 180296259.77
Total 44096551.18 136199708.59 180296259.77
Significant reversed allowances for doubtful accounts in the current period:
□ Applicable √ Not applicable
(3) Notes Receivable in Pledge at the Period-End
Unit: RMB
Item Closing amount in pledge
Trade acceptance notes 1300000.00
Total 1300000.00
(4) Notes Receivable that Were Endorsed or Discounted but Undue on the Balance Sheet Date at the
Period-End
Unit: RMB
Item Closing derecognized amount Closing un-derecognized amount
Trade acceptance notes 1901286639.74
Total 1901286639.74
(5) Notes Receivable Transferred to Accounts Receivable due to Default of the Notes Issuer at the
Period-End
Unit: RMB
Item Closing amount transferred to accounts receivable
Other notes:
There were no notes receivable that were transferred to accounts receivable due to default of
the notes issuer at the period-end.
(6) Notes Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Significant notes receivable written off:
Unit: RMB
Item
Nature of note
receivable
Amount written off Reason for write-off
Write-off procedure
executed
Arising from a
related-party
transaction or not
Notes:
No notes receivable were written off in the current period.
5. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
Type
Closing balance Opening balance
Gross amount
Allowance for
doubtful account
Carrying
amount
Gross amount
Allowance for
doubtful account
Carrying
amount
Amount
Percenta
ge
Amount
Allowanc
e
percentag
e
Amount
Percentag
e
Amount
Allowanc
e
percentag
e
Accounts receivable
for which the
allowances for
doubtful accounts are
established on the
individual basis
262941
258.37
1.70%
232409
201.69
88.39%
3053205
6.68
1997108
54.38
1.45%
1688759
17.79
84.56%
30834936.
59
Including:
Accounts receivable
for which the
allowances for
doubtful accounts are
established on the
152076
67497.5
5
98.30%
172040
9597.66
11.31%
1348725
7899.89
1352650
5454.79
98.55%
1538020
612.59
11.37%
11988484
842.20
grouping basis
Including:
Group of non-related
parties
152076
67497.5
5
98.30%
172040
9597.66
11.31%
1348725
7899.89
1352650
5454.79
98.55%
1538020
612.59
11.37%
11988484
842.20
Total
154706
08755.9
2
100.00%
195281
8799.35
12.62%
1351778
9956.57
1372621
6309.17
100.00%
1706896
530.38
12.44%
12019319
778.79
Allowances for doubtful accounts established on the individual basis : RMB232409201.69
Unit: RMB
Entity
Closing balance
Gross amount
Allowance for
doubtful account
Allowance
percentage
Reason for allowance
Hefei Zhongzhu Real Estate
Development Co. Ltd.
29487442.03 14743721.02 50.00% Based on expected loss
Kangde Composites Co. Ltd. 24448081.36 24448081.36 100.00% Expectedly irrecoverable
Funing Senso International Shopping
Center Co. Ltd.
22818582.00 22818582.00 100.00% Expectedly irrecoverable
Chongqing Forebase Industrial
Investment (Holdings) Co. Ltd.
21846558.74 21846558.74 100.00% Expectedly irrecoverable
Xiamen Shiqiao Investment
Management Co. Ltd.
21063774.00 16851019.20 80.00% Based on expected loss
Anshan Ganglong Guoxin Real Estate
Co. Ltd.
19704000.00 19704000.00 100.00% Expectedly irrecoverable
Jiangsu Shenghe Tourism
Development Co. Ltd.
15988000.49 15988000.49 100.00% Expectedly irrecoverable
Yangzhou Sifang Property
Development Co. Ltd.
15923742.05 15923742.05 100.00% Expectedly irrecoverable
Chenzhou Jinhuang Hotel
Management Co. Ltd.
15778879.42 15778879.42 100.00% Expectedly irrecoverable
Jiangsu Longzhijie Steel Trading Co.Ltd.
13471335.56 13471335.56 100.00% Expectedly irrecoverable
Zhejiang Global Real Estate Group
Co. Ltd.
11961944.74 5980972.37 50.00% Based on expected loss
Huaibei Goocoo Commercial
Operation and Management Co. Ltd.
11189217.00 5594608.50 50.00% Based on expected loss
Jiangsu Zhonghao Holding Group
Co. Ltd.
10580950.57 10580950.57 100.00% Expectedly irrecoverable
Beijing Hanergy PV Investment Co.
Ltd.
10286740.59 10286740.59 100.00% Expectedly irrecoverable
Zhengzhou Hemei Women and
Children's Hospital Co. Ltd.
7595550.00 7595550.00 100.00% Expectedly irrecoverable
Qingdao Panlong Real Estate
Development Co. Ltd.
4801527.83 4801527.83 100.00% Expectedly irrecoverable
Shanxi Hengshi P ingyang Real Estate
Development Co. Ltd.
3733597.38 3733597.38 100.00% Expectedly irrecoverable
Jiujiang Deheng Properties Co. Ltd. 1464468.43 1464468.43 100.00% Expectedly irrecoverable
SKAI Zaya Real Estate Development
LLC.
796866.18 796866.18 100.00% Expectedly irrecoverable
Total 262941258.37 232409201.69 -- --
Allowances for doubtful accounts established on the individual basis :
Unit: RMB
Item
Closing balance
Gross amount
Allowance for doubtful
account
Allowance percentage Reason for allowance
Allowances for doubtful accounts established on the grouping basis: RMB1720409597.66
Unit: RMB
Item
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Within 1 year 11786063738.24 589303186.91 5.00%
1-2 years 1733111912.59 173311191.26 10.00%
2-3 years 621160040.95 186348012.28 30.00%
3-4 years 502624954.35 251312477.18 50.00%
4-5 years 222860606.95 178288485.56 80.00%
Over 5 years 341846244.47 341846244.47 100.00%
Total 15207667497.55 1720409597.66 --
Grouping basis:
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
Item
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 11848098110.23
1-2 years 1759680863.65
2-3 years 666426362.40
Over 3 years 1196403419.64
3-4 years 557497231.83
4-5 years 239581215.14
Over 5 years 399324972.67
Total 15470608755.92
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Type Opening balance
Change in the current period
Closing balance
Established Reversed Written off Others
Allowances for
doubtful accounts
established on the
individual basis
168875917.79 91716982.35 28183698.45 232409201.69
Allowances for
doubtful accounts
established on the
grouping basis
1538020612.59 219347809.25 25170935.36 11787888.82 1720409597.66
Total 1706896530.38 311064791.60 53354633.81 11787888.82 1952818799.35
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
Other decreases referred to allowances for doubtful accounts decreased due to the disposal of
certain “Gold Mantis Home” subsidiaries in 2020.(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Accounts receivable written off 53354633.81
Significant accounts receivable written off:
Unit: RMB
Entity
Nature of
account
receivable
Amount
written off
Reason for write-off
Write-off procedure
executed
Arising from a
related-party
transaction or not
Suzhou Senso Tiandi Commerce
Development Co. Ltd.
Engineering
payment
11195518.00 Irrecoverable
Approval procedure
for write-offs
Not
Zhejiang Zhongqing Real Estate
Co. Ltd.
Engineering
payment
9968372.45 Irrecoverable
Approval procedure
for write-offs
Not
Suzhou Wujiang Senso International
Shopping Center Co. Ltd.
Engineering
payment
8475000.00 Irrecoverable
Approval procedure
for write-offs
Not
Liaoning Bihu Hot Spring Club
Management Co. Ltd.
Engineering
payment
7047393.00 Irrecoverable
Approval procedure
for write-offs
Not
Heze Dayuan Real Estate Co. Ltd.
Engineering
payment
7019808.00 Irrecoverable
Approval procedure
for write-offs
Not
Suzhou Jiahe Commercial Building
Co. Ltd.
Engineering
payment
5474705.06 Irrecoverable
Approval procedure
for write-offs
Not
Jiangsu Hongda Construction Group
Co. Ltd.
Engineering
payment
2173837.30 Irrecoverable
Approval procedure
for write-offs
Not
Foshan International Furniture
EXPO MALL
Engineering
payment
2000000.00 Irrecoverable
Approval procedure
for write-offs
Not
Total -- 53354633.81 -- -- --
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
Entity
Closing balance of accounts
receivable
As a % of the closing balance of
total accounts receivable
Closing balance of allowances for
doubtful accounts
Entity 1 638201902.75 4.13% 31910095.14
Entity 2 141511109.64 0.91% 7075555.48
Entity 3 135741214.70 0.88% 6787060.74
Entity 4 120928130.57 0.78% 6046406.53
Entity 5 119712118.87 0.77% 5985605.94
Total 1156094476.53 7.47%
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
Way of transfer of financial assets Amount of accounts receivable
derecognized
Gain or loss on derecognition
Factoring of accounts receivable 911009097.11 -40604761.02
In 2020 the Company transferred without recourse accounts receivable of
RMB911009097.11 to financial institutions and the relevant loss stood at RMB40604761.02.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon Transfer
No such assets and liabilities as at the period-end.Other information:
6. Receivables Financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 275822920.18 261530861.26
Total 275822920.18 261530861.26
Changes in receivables financing and in their fair value in the current period:
□ Applicable √ Not applicable
Where allowances for doubtful receivables financing are established using the general model of expected credit loss please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
Other information:
(1) Receivables Financing in Pledge as at the Period-End
Item Amount in pledge
Bank acceptance notes 82472805.60
(2) Receivables Financing that Were Endorsed or Discounted but Undue on the Balance Sheet
Date at the Period-End
Item Derecognized amount Un-derecognized amount
Bank acceptance notes 1907020650.41 —
(3) Notes receivable in receivables financing were all bank accepta nce notes as at the
period-end. The Company did not establish asset impairment allowances for it believed that these
bank acceptance notes were exposed to insignificant credit risk and that no significant losses would
be incurred due to default by banks or other note issuers.7. Prepayments
(1) Prepayments by Aging
Unit: RMB
Aging
Closing balance Opening balance
Amount Percentage Amount Percentage
Within 1 year 155846211.23 84.41% 262220438.54 91.20%
1-2 years 15553717.74 8.43% 14773110.88 5.14%
2-3 years 7092626.76 3.84% 5475742.57 1.90%
Over 3 years 6129682.01 3.32% 5055207.92 1.76%
Total 184622237.74 -- 287524499.91 --
Reason for not being able to settle with respect to prepayments over 1 year with a substantial amount:
No such prepayments at the period-end.
(2) Top Five Entities with Respect to Prepayments
Entity Balance as at 31 December 2020 As a % of the total balance of
prepayments
Entity 1 20022817.22 10.85
Entity 2 17538021.75 9.50
Entity 3 8077292.84 4.37
Entity 4 6769907.03 3.67
Entity 5 4300581.42 2.33
Total 56708620.26 30.72
Other information:
Prepayments as at 31 December 2020 declined 35.79% compared to 1 January 2020 primarilydriven by a decrease in prepayments for raw materials as a result of the exclusion of “Gold MantisHome” subsidiaries in the current period.
8. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 238574992.82 248803300.64
Total 238574992.82 248803300.64
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
Item Closing balance Opening balance
2) Substantial Interest Overdue
Unit: RMB
Borrower Closing balance Overdue time Reason
Any impairment and
basis for impairment
judgment
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
Item (or investee) Closing balance Opening balance
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
Item (or investee) Closing balance Aging
Reason for being
outstanding
Any impairment and
basis for impairment
judgment
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
Nature of other receivable Closing balance Opening balance
Security deposits 309634210.20 319288570.11
Imprest funds 10420087.26 10911086.13
Others 9600557.79 8696157.42
Total 329654855.25 338895813.66
2) Allowances for Doubtful Other Receivables
Unit: RMB
Allowances
Stage 1 Stage 2 Stage 3
Total 12-month expected
credit loss
Lifetime expected credit
loss (without credit
impairment)
Lifetime expected credit
loss (with credit
impairment)
Balance as at 1 January
2020
90092513.02 90092513.02
Balance as at 1 January
2020 in the current
period
—— —— —— ——
Established in the current
period
3601882.53 3601882.53
Written off in the current
period
1158746.09 1158746.09
Other changes 1455787.03 1455787.03
Balance as at 31
December 2020
91079862.43 91079862.43
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Closing balance
Within 1 year (inclusive) 172878476.62
1-2 years 63966332.11
2-3 years 21464374.24
Over 3 years 71345672.28
3-4 years 13855523.62
4-5 years 6061230.62
Over 5 years 51428918.04
Total 329654855.25
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current Period
Allowances for doubtful other receivables in the current period:
Unit: RMB
Type
Opening
balance
Change in the current period
Closing balance
Established Reversed Written off Others
Established on the
individual basis
6250000.00 2827031.97 9077031.97
Established on the
grouping basis
83842513.02 774850.56 1158746.09 1455787.03 82002830.46
Total 90092513.02 3601882.53 1158746.09 1455787.03 91079862.43Other decreases in such allowances were driven by the disposal of certain “Gold MantisHome” subsidiaries in 2020.Significant reversed allowances in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
4) Other Receivables Written off in the Current Period
Unit: RMB
Item Amount written off
Other receivables written off 1158746.09
Significant other receivables written off:
Unit: RMB
Entity
Nature of other
receivable
Amount written off Reason for write-off
Write-off procedure
executed
Arising from a
related-party
transaction or not
Heze Baina
Construction
Decoration
Engineering Co.
Ltd.Security deposit 1008746.09
Expectedly
irrecoverable
Approval procedure
for write-offs
Not
Total -- 1008746.09 -- -- --
Notes:
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
Entity
Nature of other
receivable
Closing balance Aging
As a % of the
closing balance of
total other
receivables
Closing balance of
allowances for
doubtful other
receivables
Entity 1
Security deposit for
engineering project
46984676.77 Over 4 years 14.25% 43234676.77
Entity 2
Security deposit for
execution
10573100.00 0-2 years 3.21% 1050859.43
Entity 3
Security deposit for
construction
9291641.95 1-2 years 2.82% 929164.20
Entity 4
Security deposit for
construction
5654063.93 Within 1 year 1.71% 2827031.97
Entity 5
Security deposits for
bidding and
construction
drawings
5100000.00 Within 1 year 1.55% 255000.00
Total -- 77603482.65 -- 23.54% 48296732.37
6) Other Receivables Associated with Government Grants
Unit: RMB
Entity Title of government grant Closing balance Closing aging
Expected time of receipt
and amount to be
received as well as
judgment basis
No such other receivables as at the period-end.
7) Other Receivables Derecognized due to Transfer of Financial Assets
No such other receivables as at the period-end.
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon Transfer
No such assets or liabilities as at the period-end.Other information:
9. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
No.
(1) Inventories by Type
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Inventory
valuation
allowances or
impairment
allowances for
contract
performance
costs
Carrying amount Gross amount
Inventory
valuation
allowances or
impairment
allowances for
contract
performance
costs
Carrying amount
Raw materials 21949126.04 21949126.04 31873821.55 31873821.55
Work-in-progress 2866264.15 2866264.15 4060401.32 4060401.32
Finished goods 12242103.39 591588.71 11650514.68 46733581.91 221541.68 46512040.23
Turnover
materials
465048.33 465048.33 2232904.75 2232904.75
Consumptive
living assets
16910928.84 16910928.84 16664961.43 16664961.43
Total 54433470.75 591588.71 53841882.04 101565670.96 221541.68 101344129.28
(2) Inventory Valuation Allowances and Impairment Allowances for Contract Performance Costs
Unit: RMB
Item Opening balance
Increase in the current period Decrease in the current period
Closing balance
Established Others
Reversed or
written off
Others
Finished goods 221541.68 370047.03 591588.71
Total 221541.68 370047.03 591588.71
Inventories declined 46.87% as at 31 December 2020 compared to 1 January 2020 primarily
driven by a decrease in finished goods as a result of the disposal of “Gold Mantis Home”
subsidiaries.(3) Capitalized Borrowing Costs in the Closing Balance of Inventories
(4) Amortization of Contract Performance Costs in the Current Period
10. Contract Assets
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowances
Carrying
amount
Gross amount
Impairment
allowances
Carrying amount
Completed but unsettled
assets
6783629836.
10
340338591.79
6443291244.
31
9082105628.
49
454105281.41 8628000347.08
Undue quality assurance
deposits
2462490569.
90
128878589.96
2333611979.
94
1631100643.
17
81555032.14 1549545611.03
Total
9246120406.
00
469217181.75
8776903224.
25
10713206271
.66
535660313.55
10177545958.1
1
Significant changes in the carrying amounts of contract assets in the current period and reasons:
Unit: RMB
Item Amount of change Reason for change
Where impairment allowances for contract assets are established using the general model of expected credit loss please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
Impairment allowances for contract assets in the current period:
Unit: RMB
Item
Established in the current
period
Reversed in the current
period
Written off/charged off in
the current period
Reason
Impairment allowances -66443131.80
Total -66443131.80 --
Other information:
11. Assets Held for Sale
Unit: RMB
Item
Closing gross
amount
Impairment
allowances
Closing carrying
amount
Fair value
Expected disposal
cost
Expected disposal
time
Other information:
12. Current Portion of Non-Current Assets
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term receivables 90289257.26 31698807.42
Less: allowances for doubtful long-term
receivables
-902892.57 -316988.07
Total 89386364.69 31381819.35
Substantial debt investments/other debt investments:
Unit: RMB
Debt investment
Closing balance Opening balance
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Other information:
Current portion of non-current assets rose 184.83% as at 31 December 2020 compared to 1
January 2020 primarily driven by a significant amount of engineering payment receivable by
subsidiary Shuicheng Ruitong being reclassified to the current portion of non-current assets.
13. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Taxes to be deducted 113007717.52 116384039.46
Total 113007717.52 116384039.46
Other information:
14. Debt Investments
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowances
Carrying amount Gross amount
Impairment
allowances
Carrying amount
Substantial debt investments:
Unit: RMB
Debt investment
Closing balance Opening balance
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Impairment allowances:
Unit: RMB
Impairment allowances
Stage 1 Stage 2 Stage 3
Total
12-month expected Lifetime expected credit Lifetime expected credit
credit loss loss (without credit
impairment)
loss (with credit
impairment)
Balance as at 1 January
2020 in the current
period
—— —— —— ——
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
15. Other Debt Investments
Unit: RMB
Item
Opening
balance
Accrued
interest
Changes in
fair value in
the current
period
Closing
balance
Cost
Cumulative
changes in
fair value
Cumulative
loss
allowances
recognized in
other
comprehensi
ve income
Remark
Substantial other debt investments:
Unit: RMB
Other debt investment
Closing balance Opening balance
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Nominal
value
Nominal
interest rate
Effective
interest rate
Maturity
Impairment allowances:
Unit: RMB
Impairment allowances
Stage 1 Stage 2 Stage 3
Total 12-month expected
credit loss
Lifetime expected credit
loss (without credit
impairment)
Lifetime expected credit
loss (with credit
impairment)
Balance as at 1 January
2020 in the current
period
—— —— —— ——
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
16. Long-term Receivables
(1) Particulars about Long-term Receivables
Unit: RMB
Item
Closing balance Opening balance
Range of
discount rates Gross amount
Allowances for
doubtful
long-term
receivables
Carrying
amount
Gross amount
Allowances for
doubtful
long-term
receivables
Carrying
amount
Engineering
payments by
installment
1543455556.
41
15434555.57
1528021000.
84
1453168093.
23
14531680.93
1438636412.
30
Total
1543455556.
41
15434555.57
1528021000.
84
1453168093.
23
14531680.93
1438636412.
30
--
Allowances for doubtful long-term receivables:
Unit: RMB
Allowances for doubtful
long-term receivables
Stage 1 Stage 2 Stage 3
Total 12-month expected
credit loss
Lifetime expected credit
loss (without credit
impairment)
Lifetime expected credit
loss (with credit
impairment)
Balance as at 1 January
2020
14531680.93 14531680.93
Balance as at 1 January
2020 in the current
period
—— —— —— ——
Established in the current
period
902874.64 902874.64
Balance as at 31
December 2020
15434555.57 15434555.57
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
(2) Long-term Receivables Derecognized due to Transfer of Financial Assets
No such long-term receivables as at the period-end.
(3) Assets and Liabilities Arising from Continuing to Involve in Long-term Receivables upon Transfer
No such assets or liabilities as at the period-end.Other information:
Top five entities with respect to long-term receivables as at the period-end:
Entity Balance as at 31 December
2020
As a % of the balance of
total long-term
receivables
Balance of
allowances for
doubtful long-term
receivables
Entity 1 886888566.70 57.46 8868885.67
Entity 2 279622082.77 18.12 2796220.83
Entity 3 149661726.24 9.70 1496617.26
Entity 4 137170209.87 8.89 1371702.10
Entity 5 51143400.15 3.31 511434.00
Total 1504485985.73 97.48 15044859.86
17. Long-term Equity Investments
Unit: RMB
Investee
Opening
balance
(carrying
amount)
Change in the current period
Closing
balance
(carrying
amount)
Closing
balance
of
impairme
nt
allowance
Additional
investment
Reduce
d
investm
ent
Return on
investmen
t
recognize
d using
the equity
method
Adjustme
nt to other
comprehe
nsive
income
Other
equity
changes
Declared
cash
dividends
or profit
Impairme
nt
allowance
Others
1. Joint ventures
2. Associates
Macao
Gold
Mantis
Construct
ion
Decoratio
n Co.
Limited
Delos
Residenti
al
6366934
.25
-614181
0.19
225124.0
6
Solutions（HK）
Limited
Zhejiang
Tianyu
Commerc
ial
Operation
Managem
ent Co.Ltd.
1647148
9.41
1305660
2.98
-341488
6.43
Subtotal
2283842
3.66
1305660
2.98
-955669
6.62
225124.0
6
Total
2283842
3.66
1305660
2.98
-955669
6.62
225124.0
6
Other information:
(1) On 18 July 2016 in accordance with the Framework Agreement signed between the
Company's subsidiary Gold Mantis (International) and Macao Yuji Limited and Yuzhuo
International Limited (hereinafter referred to as the "Transferee") Gold Ma ntis (International)
transferred its 55% equity in Macao Gold Mantis Construction Decoration Limited to the
Transferee. Upon the completion of the above transaction Gold Mantis (International) would be
able to exert a significant influence on Macao Gold Mantis Construction Decoration Limited so the
equity method was adopted for accounting. As of 31 December 2020 the subsidiary Gold Mantis
(International) had not yet made the actual capital contribution and Macao Gold Mantis
Construction Decoration Limited had not yet carried out business operations.
(2) On 25 August 2017 Gold Mantis (International) a subsidiary of the Company invested
jointly with Delos China (HK) Limited to establish Delos Residential Solutions (HK) Limited with
a registered capital of USD2.00 million. As of 31 December 2020 Gold Mantis (International) had
a 45.78% shareholding and was able to exert a significant influence on Delos Residential Solutions
(HK) Limited so the equity method was adopted for accounting.
(3) On 22 December 2017 the Company and its sub-subsidiary Refined Decoration &
Technology invested to establish Zhejiang Tianyu Commercial Operation Management Co. Ltd.jointly with Zhongtian Holdings Group Co. Ltd. with a registered capital of RMB50.00 million.Specifically the Company contributed RMB17.50 million accounting for 35.00% of the registered
capital; Refined Decoration & Technology contributed RMB7.50 million accounting for 15.00% of
the registered capital. Since the Company was able to exert a significant influence on Zhejiang
Tianyu Commercial Operation Management Co. Ltd. the equity method was adopted for
accounting. In September 2020 the Company and its subsidiary Refined Decoration & Technology
transferred their 50.00% stake in Zhejiang Tianyu Commercial Operation Management Co. Ltd. to
Hangzhou Tianshuo Apartment Management Co. Ltd. based on the Agreement on Equity Transfer
and Relevant Matters signed between the Company and its subsidiary Refined Decoration &
Technology and Hangzhou Tianshuo Apartment Management Co. Ltd. and the registration of
industrial and commercial changes was completed on 29 October 2020.
(4) At the end of 2020 the amount of long-term equity investments was 99.01% lower than that
at the beginning of 2020 which was largely attributable to the large amount of investments in the
equity disposal of Zhejiang Tianyu Commercial Operation Management Co. Ltd. for the current
period.
18. Investments in Other Equity Instruments
Unit: RMB
Item Closing balance Opening balance
Investments in equity instruments not held for trading in the current period by item:
Unit: RMB
Item
Dividend income
recognized
Cumulative gains
Cumulative
losses
Other
comprehensive
income
transferred to
retained earnings
Reason for being
designated as
being measured at
fair value through
other
comprehensive
income
Reason for other
comprehensive
income being
transferred to
retained earnings
Other information:
19. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Equity investments
Of which: Zhijiang New Industrial Co.Ltd.
250000000.00 250000000.00
Shanghai Yunfeng Qitai Investment Center
(L.P.)
200000000.00 132000000.00
Shanghai Cura Investment&Management
Co. Ltd.
31872000.00 31872000.00
Lanzhou Scisky Waterborne Technologies
Co. Ltd.
30000000.00 30000000.00
Suzhou People's Department Store Co.Ltd.
150000.00 150000.00
Total 512022000.00 444022000.00
Other information:
20. Investment Property
(1) Investment Property Measured at Cost
√ Applicable □ Not applicable
Unit: RMB
Item Buildings Land use rights Construction in progress Total
I Gross amount
1. Opening balance 107603669.46 4789221.26 112392890.72
2. Increase in the
current period
58816519.62 3466275.52 62282795.14
(1) Purchased 25560270.67 25560270.67
(2) Transferred from
inventories \fixed
assets\construction in
progress
33256248.95 3466275.52 36722524.47
(3) Increase due to
business combination
3. Decrease in the
current period
(1) Disposal
(2) Other decreases
4. Closing balance 166420189.08 8255496.78 174675685.86
II Accumulated
depreciation and
amortization
1. Opening balance 30741814.64 3400514.38 34142329.02
2. Increase in the
current period
4353890.76 883557.14 5237447.90
(1) Provided or
amortized
4353890.76 260112.12 4614002.88
(2) Transferred
from intangible assets
623445.02 623445.02
3. Decrease in the
current period
(1) Disposal
(2) Other decreases
4. Closing balance 35095705.40 4284071.52 39379776.92
III Impairment
allowances
1. Opening balance
2. Increase in the
current period
(1) Established
3. Decrease in the
current period
(1) Disposal
(2) Other decreases
4. Closing balance
IV Carrying amount
1. Closing carrying
amount
131324483.68 3971425.26 135295908.94
1. Opening carrying
amount
76861854.82 1388706.88 78250561.70
(2) Investment Property Measured at Fair Value
□ Applicable √ Not applicable
(3) Investment Property with Pending Ownership Certificate
Unit: RMB
Item Carrying amount
Reason for ownership certificate being
pending
Buildings 33256248.95
Going through the formalities in relation to
ownership certificate
Other information:
(1) No impairment allowances were established for investment property as at the period-end
for there were no impairments in investment property.
(2) Investment property rose 72.90% as at 31 December 2020 compared to 1 January 2020
primarily driven by a larger amount of buildings leased out in the current period.21. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 892169838.74 910175452.03
Total 892169838.74 910175452.03
(1) Particulars about Fixed Assets
Unit: RMB
Item Buildings
Plant and
equipment
Transportation
equipment
office
equipment
Electronic
equipment
Other
equipment
Total
I Gross amount
1. Opening
balance
1033143972.
15
59276036.57 81232176.69 153127873.55 47904114.25 23021378.36
1397705551.
57
2. Increase
in the current
period
26544870.62 3716.81 3916986.63 7996903.73 3010059.08 371919.30 41844456.17
(1)
Purchased
9125382.53 3716.81 3916986.63 7996903.73 3010059.08 371919.30 24424968.08
(2)
Transferred
from
construction in
progress
17419488.09 17419488.09
(3)
Increase due to
business
combination
3. Decrease
in the current
period
102603.42 6641436.53 13601427.46 4257610.84 1364201.59 25967279.84
(1)
Disposal or
retirement
98803.42 6259565.12 7502864.04 4257610.84 1352990.40 19471833.82
(2) Other
decreases
3800.00 381871.41 6098563.42 11211.19 6495446.02
4. Closing
balance
1059688842.
77
59177149.96 78507726.79 147523349.82 46656562.49 22029096.07
1413582727.
90
II Accumulated
depreciation
1. Opening
balance
220388489.29 39406430.30 61910440.72 110646298.04 35975206.38 18584150.16 486911014.89
2. Increase
in the current
period
30374380.37 3555997.36 4226871.72 10710437.00 4344086.95 994260.71 54206034.11
(1)
Provision
30374380.37 3555997.36 4226871.72 10710437.00 4344086.95 994260.71 54206034.11
3. Decrease
in the current
period
42803.42 5736766.38 9812060.80 3685735.74 1045878.15 20323244.49
(1)
Disposal or
retirement
41991.26 5481163.98 7198823.93 3685735.74 1040910.20 17448625.11
(2) Other
decreases
812.16 255602.40 2613236.87 4967.95 2874619.38
4. Closing
balance
250762869.66 42919624.24 60400546.06 111544674.24 36633557.59 18532532.72 520793804.51
III Impairment
allowances
1. Opening
balance
46631.91 290705.70 281747.04 619084.65
2.Increase in
the current
period
(1)
Established
3. Decrease
in the current
period
(1)
Disposal or
retirement
4. Closing
balance
46631.91 290705.70 281747.04 619084.65
IV Carrying
amount
1. Closing
carrying
amount
808925973.11 16210893.81 17816475.03 35696928.54 10023004.90 3496563.35 892169838.74
2.
Opening
carrying
amount
812755482.86 19822974.36 19031030.27 42199828.47 11928907.87 4437228.20 910175452.03
(2) Temporarily Idle Fixed Assets
Unit: RMB
Item Gross amount
Accumulated
depreciation
Impairment
allowance
Carrying amount Remark
(3) Fixed Assets Leased in in Finance Leases
Unit: RMB
Item Gross amount
Accumulated
depreciation
Impairment allowance Carrying amount
(4) Fixed Assets Leased out in Operating Leases
Unit: RMB
Item Closing carrying amount
(5) Fixed Assets with Pending Ownership Certificate
Unit: RMB
Item Carrying amount
Reason for ownership certificate being
pending
Other information:
Notes:
① Other decreases were driven by the disposal of certain “Gold Mantis Home” subsidiaries.② No fixed assets were idle exchanged in pledge or used for guarantees as at the period-end.③ There were no fixed assets leased in in finance leases as at the period-end.④ There were no fixed assets leased out in operating leases as at the period-end.⑤ There were no fixed assets with pending ownership certificate as at the period-end.(6) Disposal of Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Other information:
22. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 41215785.57 71905579.25
Total 41215785.57 71905579.25
(1) Particulars about Construction in Progress
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowance
Carrying amount Gross amount
Impairment
allowance
Carrying amount
Project of
extending the
energy-saving
curtain wall door
and window
production line
20711581.55 20711581.55
Miscellaneous
projects
41215785.57 41215785.57 51193997.70 51193997.70
Total 41215785.57 41215785.57 71905579.25 71905579.25
(2) Changes in Substantial Construction in Progress in the Current Period
Unit: RMB
Project Budget
Opening
balance
Increase
in the
current
period
Transferr
ed to
fixed
assets in
the
current
period
Other
decrease
s in the
current
period
Closing
balance
Cumulati
ve
project
investme
nt as a %
of the
budget
Project
progress
Cumulati
ve
capitaliz
ed
interest
Of
which:
Capitaliz
ed
interest
in the
current
period
Interest
capitaliz
ation rate
for the
current
period
Funding
source
Project 260000 207115 125446 332562 127.91% 100.00 Other
of
extendin
g the
energy-s
aving
curtain
wall
door and
window
producti
on line
00.00 81.55 67.40 48.95
Miscella
neous
projects
511939
97.70
962428
3.75
174194
88.09
218300
7.79
412157
85.57
Other
Total
260000
00.00
719055
79.25
221689
51.15
506757
37.04
218300
7.79
412157
85.57
-- -- --
(3) Impairment Allowances for Construction in Progress in the Current Period
Unit: RMB
Item
Amount of impairment allowances in the
current period
Reason for impairment allowances
Other information:
(1) Other decreases in 2020 were transfers to long-term prepaid expense.
(2) No impairment allowances were established for construction in progress as at the
period-end for there were no impairments in construction in progress.
(3) Construction in progress declined 42.68% as at 31 December 2020 compared to 1 January
2020 primarily driven by the project of extending the energy-saving curtain wall door and window
production line being completed and transferred to fixed assets.
(4) Engineering Materials
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowance
Carrying
amount
Gross amount
Impairment
allowance
Carrying
amount
Other information:
23. Productive Living Assets
(1) Productive Living Assets Measured at Cost
□ Applicable √ Not applicable
(2) Productive Living Assets Measured at Fair Value
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Total
Other information:
26. Intangible Assets
(1) Particulars about Intangible Assets
Unit: RMB
Item Land use rights Patent rights
Non-patented
technologies
Concessions
Software and
others
Total
I Gross amount
1. Opening
balance
90373053.62 198130.00 36000000.00 59624569.24 186195752.86
2. Increase
in the current
period
809239.20 809239.20
(1)
Purchased
809239.20 809239.20
(2)
Internal R&D
(3)
Increase due to
business
combination
3. Decrease in
the current period
9095039.01 4348131.15 13443170.16
(1)
Disposal
5628763.49 4348131.15 9976894.64
(2)
Transferred to
investment
property
3466275.52 3466275.52
4. Closing
balance
81278014.61 198130.00 36000000.00 56085677.29 173561821.90
II Accumulated
amortization
1. Opening
balance
25830165.48 198130.00 4083333.34 46978302.95 77089931.77
2. Increase
in the current
period
5539310.57 4456754.16 9996064.73
(1)
Provision
5539310.57 4456754.16 9996064.73
3. Decrease
in the current
period
1083127.36 1983555.60 3066682.96
(1)
Disposal
459682.34 1983555.60 2443237.94
(2)
Transferred to
investment
property
623445.02 623445.02
4. Closing
balance
30286348.69 198130.00 4083333.34 49451501.51 84019313.54
III Impairment
allowances
1. Opening
balance
2. Increase
in the current
period
(1)
Established
3. Decrease
in the current
period
(1) Disposal
4. Closing
balance
IV Carrying
amount
1. Closing
carrying amount
50991665.92 31916666.66 6634175.78 89542508.36
2. Opening
carrying amount
64542888.14 31916666.66 12646266.29 109105821.09
Intangible assets arising from internal R&D accounted for 0.00% of the balance of intangible assets as at the period-end.
(2) Land Use Rights with Pending Ownership Certificate
Unit: RMB
Item Carrying amount
Reason for ownership certificate being
pending
Other information:
(1) No impairment allowances were established for intangible assets as at the period-end for
there were no impairments in intangible assets.
(2) No intangible assets were idle exchanged in pledge or used for guarantees as at the
period-end.
27. Development Costs
Unit: RMB
Item
Opening
balance
Increase in the current period Decrease in the current period
Closing
balance
Internal
development
costs
Others
Recognized
as intangible
assets
Transferred
to profit or
loss
Total
Other information:
28. Goodwill
(1) Gross Amounts of Goodwill
Unit: RMB
Investee or item
generating
goodwill
Opening balance
Increase in the current period Decrease in the current period
Closing balance
Generated due to
business
combination
Disposal Others
HBA 410065631.57 26527711.29 383537920.28
Coopers Hill
Singapore Pte
Ltd*
19100835.60 1235659.40 17865176.20
Archi-Feeling 6652310.57 6652310.57
Total 435818777.74 27763370.69 408055407.05
(2) Impairment Allowances for Goodwill
Unit: RMB
Investee or item
generating
goodwill
Opening balance
Increase in the current period Decrease in the current period
Closing balance
Established Disposal
HBA 0.00 0.00 0.00 0.00 0.00 0.00
CHS 0.00 0.00 0.00 0.00 0.00 0.00
Archi-Feeling 0.00 0.00 0.00 0.00 0.00
Total
Information related to asset groups or asset group combinations in which goodwill resides
An explanation for the goodwill impairment test process key parameters (such as growth rate in the forecast period growth rate in
the stable period profit margin discount rate and forecast period used in predicting the present value of future cash flows) and
recognition methods of goodwill impairment loss:
Note*: Coopers Hill Singapore Pte Ltd is hereinafter referred to as "CHS".
(1) Other decreases in goodwill were due to the translation difference in foreign currency
statements arising from changes in exchange rates.
(2) The goodwill impairment test process parameters and recognition methods of goodwill
impairment loss
① Goodwill recognized for the acquisition of HBA
A. Identification and definition of asset group combinations
The composition of an asset group combination was determined after excluding the carrying
value of excess assets non-operating assets and liabilities and interest-bearing liabilities according
to the carrying value by the standard of financial statements.
B. The process methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset group combinations. The future cash flows were forecast based on the five-year
financial budget of the above asset groups approved by the management and the perpetual cash
flows after five years were determined at the level of the last year of the detailed forecast period.The discount rate used to calculate the present value was 15.48% which was the pre-tax discount
rate that reflected the specific risk of the relevant asset group combination. Other critical
assumptions used to forecast the cash flows of asset group combinations included operating
revenue cost of sales growth rate and relevant expenses. The above assumptions were based on the
Company's operating performance growth rate and industry position in previous years and the
management's expectations for market development.
According to the goodwill impairment test process the goodwill recognized for the acquisition
of HBA did not require any impairment provision as of 31 December 2020.② Goodwill recognized for the acquisition of CHS
A. Identification and definition of asset group combinations
The composition of an asset group combination was determined after excluding the carrying
value of excess assets non-operating assets and liabilities and interest-bearing liabilities according
to the carrying value by the standard of financial statements.
B. The process methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset group combinations. The future cash flows were forecast based on the five-year
financial budget of the above asset groups approved by the management and the perpetual cash
flows after five years were determined at the level of the last year of the detailed forecast period.The discount rate used to calculate the present value was 14.90% which was the pre-tax discount
rate that reflected the specific risk of the relevant asset group combination. Other critical
assumptions used to forecast the cash flows of asset group combinations included operating
revenue cost of sales growth rate and relevant expenses. The above assumptions were based on the
Company's operating performance growth rate and industry position in previous years and the
management's expectations for market development.
According to the goodwill impairment test process the goodwill recognized for the acquisition
of CHS did not require any impairment provision as of 31 December 2020.
③ Goodwill recognized for the acquisition of Archi-Feeling Design
A. Identification and definition of asset groups
The composition of an asset group was determined after excluding the carrying value of excess
assets non-operating assets and liabilities and interest-bearing liabilities according to the carrying
value by the standard of financial statements.
B. The process methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset groups. The future cash flows were forecast based on the five-year financial
budget of the above asset groups approved by the management and the perpetual cash flows after
five years were determined at the level of the last year of the detailed forecast period. The discount
rate used to calculate the present value was 16.79% which was the pre-tax discount rate that
reflected the specific risk of the relevant asset group combination. Other critical assumptions used
to forecast the cash flows of asset groups included operating revenue cost of sales growth rate and
relevant expenses. The above assumptions were based on the Company's operating performance
growth rate and industry status in previous years and the management's expectations for market
development.
According to the goodwill impairment test process the goodwill recognized for the acquisition
of Archi-Feeling Design did not require any impairment provision as of 31 December 2020.
Impact of the goodwill impairment test
Other information:
29. Long-term Prepaid Expense
Unit: RMB
Item Opening balance
Increase in the
current period
Amortization in the
current period
Other decreases Closing balance
Decoration expense 157443245.55 7850423.92 60823876.16 54565438.99 49904354.32
Total 157443245.55 7850423.92 60823876.16 54565438.99 49904354.32
Other information:
(1) Other decreases were primarily driven by the disposal of certain “Gold Mantis Home”
subsidiaries.
(2) Long-term prepaid expense declined 68.30% as at 31 December 2020 compared to 31
December 2019 primarily driven by a larger amount of amortization and the disposal of certain
“Gold Mantis Home” subsidiaries in the current period.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets before Offsetting
Unit: RMB
Item
Closing balance Opening balance
Deductible temporary
differences
Deferred income tax
assets
Deductible temporary
differences
Deferred income tax
assets
Asset impairment
allowances
465490701.04 70831251.69
Deductible losses 105430566.80 21817702.30
Credit impairment
allowances
2220344202.71 337359385.19 2352465106.39 356509412.91
Share-based payments 65283144.96 9792471.74 91146125.00 13671918.75
Changes in the fair value
of other non-current
financial assets
64000000.00 9600000.00 64000000.00 9600000.00
Employee benefits
payable
62158308.41 10566912.43 60980195.29 10366633.20
Impairment allowances
for fixed assets
610987.16 91648.07 610987.16 91648.07
Total 2877887344.28 438241669.12 2674632980.64 412057315.23
(2) Deferred Income Tax Liabilities before Offsetting
Unit: RMB
Item
Closing balance Opening balance
Deductible temporary
differences
Deferred income tax
liabilities
Deductible temporary
differences
Deferred income tax
liabilities
Incurred by the
depreciation of fixed
assets of overseas
subsidiaries
12377183.94 2104121.27 11120885.99 1890550.20
Federal breaks of state
taxes in the U.S.
8789424.12 1494202.10 2001968.76 340334.69
Changes in the fair value
of held-for-trading
financial assets
3486741.05 565295.04 4210654.74 700453.46
Total 24653349.11 4163618.41 17333509.49 2931338.35
(3) Net Balances of Deferred Income Tax Assets/Liabilities after Offsetting
Unit: RMB
Item
Offset amount between
deferred income tax
assets and liabilities as at
the period-end
Closing balance of
deferred income tax
assets or liabilities after
offsetting
Offset amount between
deferred income tax
assets and liabilities as at
the period-begin
Opening balance of
deferred income tax
assets or liabilities after
offsetting
Deferred income tax
assets
438241669.12 412057315.23
Deferred income tax
liabilities
4163618.41 2931338.35
(4) Breakdown of Deferred Income Tax Assets Unrecognized
Unit: RMB
Item Closing balance Opening balance
Deductible losses 262865271.34 325504325.38
Credit impairment allowances 20188166.98 39129470.74
Asset impairment allowances 3726480.71
Inventory valuation allowances 591588.71 221541.68
Impairment allowances for fixed assets 8097.49 8097.49
Total 287379605.23 364863435.29
(5) Deductible losses on which deferred income tax assets were unrecognized will expire in the following
years:
Unit: RMB
Year Closing amount Opening amount Remark
2020 5253936.63
2021 1475132.07 1475132.07
2022 35282566.54 70565133.07
2023 26816496.47 53632992.93
2024 97288565.34 194577130.68
2025 102002510.92
Total 262865271.34 325504325.38 --
Other information:
(1) Deferred income tax liabilities rose 42.04% as at 31 December 2020 compared to 1 January
2020 primarily driven by a larger amount of taxable temporary differences incurred by overseas
subsidiaries.
31. Other Non-current Assets
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowance
Carrying
amount
Gross amount
Impairment
allowance
Carrying
amount
Prepayments for properties
268329840.
24
268329840.
24
193055970.
41
193055970.
41
Cash surrender value of life insurance
11105379.8
0
11105379.8
0
8706297.60 8706297.60
Total
279435220.
04
279435220.
04
201762268.
01
201762268.
01
Other information:
(1) Cash surrender value of life insurance referred to the cash amount receivable from the
insurance company on the assumption that HBA a subsidiary of Singapore Gold Mantis ceased to
provide life insurance for certain key management personnel on 31 December 2020. The company
did not plan to cease to provide such life insurance for the near future.
(2) Other non-current assets rose 38.50% as at 31 December 2020 compared to 1 January 2020
primarily driven by an increase in prepayments for properties in the current period.
32. Short-term Borrowings
(1) Short-term Borrowings by Type
Unit: RMB
Item Closing balance Opening balance
Credit borrowings 150000000.00
Guaranteed borrowings 515747000.00 353286000.00
Factored accounts receivable 103990224.42 305317494.85
Discounted trade acceptance notes 94159267.99 65848180.26
Accrued interest 466680.44 1239453.64
Total 714363172.85 875691128.75
Notes:
(1) Of the balance of guaranteed borrowings as at the period-end the Company provided
guarantees for loans of USD30000000.00 (equivalent to RMB195747000.00) from banks to
Singapore Gold Mantis loans of RMB250000000.00 from banks to Meiruide and loans of
RMB70000000.00 from banks to Gold Mantis Supply Chain.
(2) There were no overdue short-term borrowings in the closing balance.
(2) Overdue Short-term Borrowings
Overdue short-term borrowings amounted to RMB as at the period-end with substantial ones as follows:
Unit: RMB
Lender Closing balance Lending rate Overdue time
Interest rate for overdue
amount
Other information:
33. Held-for-trading Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Of which:
Of which:
Other information:
34. Derivative Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
35. Notes Payable
Unit: RMB
Type Closing balance Opening balance
Trade acceptance notes 354853516.29 254533804.30
Bank acceptance notes 4322815789.95 4291747256.62
Accounts payable financing 193553381.44 56239416.00
Total 4871222687.68 4602520476.92
Overdue notes payable amounted to RMB0.00 as at the period-end.
36. Accounts Payable
(1) Breakdown of Accounts Payable
Unit: RMB
Item Closing balance Opening balance
Payables for materials 14614508048.63 11447745261.06
Payables for labor services 2388948158.11 1798077521.46
Payables for engineering equipment 39589683.07 29686016.12
Other payables 3861018.69 4260700.49
Total 17046906908.50 13279769499.13
(2) Substantial Accounts Payable Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Other information:
37. Advances from Customers
(1) Breakdown of Advances from Customers
Unit: RMB
Item Closing balance Opening balance
Engineering advances from customers
Design advances from customers
(2) Substantial Advances from Customers Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
38. Contract Liabilities
Unit: RMB
Item Closing balance Opening balance
Engineering advances from customers 644164113.54 649488709.66
Design advances from customers 169582138.15 247340262.19
Others 4597303.11
Total 818343554.80 896828971.85
Significant changes in the carrying amounts in the current period and the reasons:
Unit: RMB
Item Amount of change Reason for change
39. Employee Benefits Payable
(1) Breakdown of Employee Benefits Payable
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
I Short-term
remuneration
1735803281.89 2963505126.85 3016217906.03 1683090502.71
II After-service
benefits-defined
contribution scheme
12270451.07 68373091.20 62964903.75 17678638.52
Total 1748073732.96 3031878218.05 3079182809.78 1700769141.23
(2) Breakdown of Short-term Remuneration
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
1. Salaries bonuses
allowances and subsidies
1732551863.76 2822429969.21 2873821710.22 1681160122.75
2. Staff welfare 72472984.06 72472984.06
3. Social security
contributions
1652783.46 24659372.04 25344696.50 967459.00
Including: Medical
insurance
1259124.46 18896867.24 19592521.07 563470.63
Work injury
insurance
47612.90 1856750.69 1874304.68 30058.91
Maternity
insurance
346046.10 3905754.11 3877870.75 373929.46
4. Housing funds 140977.56 42515439.95 42526195.91 130221.60
5. Labor union funds and
employee education
funds
1457657.11 1427361.59 2052319.34 832699.36
Total 1735803281.89 2963505126.85 3016217906.03 1683090502.71
(3) Breakdown of Defined Contribution Schemes
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
1. Basic pension
insurance
12197065.93 65933707.54 60615994.30 17514779.17
2. Unemployment
insurance
73385.14 2439383.66 2348909.45 163859.35
Total 12270451.07 68373091.20 62964903.75 17678638.52
Other information:
40. Taxes and Levies Payable
Unit: RMB
Item Closing balance Opening balance
Value added tax 80101991.57 73136588.85
Corporate income tax 116867138.78 157429281.38
Individual income tax 15331133.62 12322683.19
Property tax 1763657.75 2554114.91
Others 2911955.61 11163930.55
Total 216975877.33 256606598.88
Other information:
41. Other Payables
Unit: RMB
Item Closing balance Opening balance
Dividends payable 10574000.00 6620000.00
Other payables 288908436.62 587327128.96
Total 299482436.62 593947128.96
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Substantial overdue interest payable:
Unit: RMB
Lender Overdue amount Reason
Other information:
(2) Dividends Payable
Unit: RMB
Item Closing balance Opening balance
Dividends for ordinary shareholders 10574000.00 6620000.00
Total 10574000.00 6620000.00
Other information: If there is any substantial dividend payable over 1 year the reason should be disclosed.
(3) Other Payables
1) Other Payables by Nature
Unit: RMB
Item Closing balance Opening balance
Restricted share repurchase obligations 121595650.00 132069000.00
Security deposits 107158502.19 78173578.47
Current payables to external entities 43329326.46 38947180.78
Payables for equity transfer 530000.00 1155000.00
Temporary receipts 310039938.59
Contributions for restricted shares 15793500.00
Others 16294957.97 11148931.12
Total 288908436.62 587327128.96
2) Substantial Other Payables Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Other information:
(1) Other payables declined 49.58% as at 31 December 2020 compared to 1 January 2020
primarily driven by a larger amount of temporary receipts repaid in the current period.
42. Liabilities Directly Associated with Assets Held for Sale
Unit: RMB
Item Closing balance Opening balance
Other information:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 51000000.00 22000000.00
Accrued interest 83934.28
Total 51083934.28 22000000.00
Other information:
(1) Of the loans secured with pledge in the total amount of RMB207.1522 million received by
the Company’s controlled subsidiary Xi’an Jinchuang from the Xi’an High-tech Development Zone
sub-branch of the Bank of China RMB11 million will expire in May 2021 and another RMB11
million in November 2021. Of the loans secured with pledge in the total amount of RMB708.2366
million received by the Company’s controlled subsidiary Shuicheng Ruitong from the Shuicheng
sub-branch of the Agricultural Development Bank of China RMB29 million will expire in
December 2021.
(2) Current portion of non-current liabilities rose 132.20% as at as at 31 December 2020
compared to 1 January 2020 primarily driven by a larger amount of long-term borrowings due in
2021.
44. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 1292998919.56 1096595399.65
Loss contracts to be executed 4750127.20 11120062.80
Total 1297749046.76 1107715462.45
Changes in short-term bonds payable:
Unit: RMB
Bond
name
Nominal
value
Date of
issue
Term
Issued
amount
Opening
balance
Issued in
the
current
period
Interest
accrued
based on
nominal
value
Amortizat
ion of
premium
or
discount
Repaid in
the
current
period
Closing
balance
Other information:
(1) The Company established allowances for the anticipated losses on outstanding contracts.
Such losses were mainly composed of the portion of the labor and other costs that would be
incurred by the anticipated completion of these contracts and exceed the anticipated benefits. The
Company cannot seek any compensation from any third party for these losses. The Company
anticipated that due to the completion of the project the anticipated losses of all accrued contracts
would be reversed within the next 12 months so other current liabilities were listed as the
provisions arising from the onerous contracts to be executed.
45. Long-term Borrowings
(1) Long-term Borrowings by Type
Unit: RMB
Item Closing balance Opening balance
Borrowings secured with pledge 835388800.00 837152200.00
Accrued interest 1529553.34 1409522.30
Total 836918353.34 838561722.30
Notes:
Other information including the range of interest rates
(1) Breakdown of Long-term Borrowings
Lender Start date End date Currency Interest
rate (%)
31 December
2020
31 December
2019
Shuicheng
sub-branch of the
Agricultural
Development Bank
of China
2019/6/26 2033/6/19 RMB 6.37 251000000.00 280000000.00
Shuicheng
sub-branch of the
Agricultural
Development Bank
of China
2019/7/26 2033/6/19 RMB 6.37 200000000.00 200000000.00
Shuicheng
sub-branch of the
Agricultural
Development Bank
of China
2019/10/30 2033/6/19 RMB 6.37 150000000.00 150000000.00
Xi’an High-tech
Development Zone
sub-branch of the
Bank of China
2017/11/28 2028/11/29 RMB 4.90 82032000.00 94000000.00
Xi’an High-tech
Development Zone
sub-branch of the
Bank of China
2017/11/29 2028/11/28 RMB 4.90 58368000.00 64000000.00
Shuicheng
sub-branch of the
Agricultural
Development Bank
of China
2020/1/2 2033/6/19 RMB 6.37 39236600.00 —
Xi’an High-tech
Development Zone
sub-branch of the
Bank of China
2018/11/29 2028/11/28 RMB 5.39 30431496.00 33423496.00
Xi’an High-tech
Development Zone
sub-branch of the
Bank of China
2018/11/30 2028/11/28 RMB 5.39 14320704.00 15728704.00
Shuicheng
sub-branch of the
2020/4/21 2033/6/19 RMB 6.37 10000000.00 —
Agricultural
Development Bank
of China
Total 835388800.00 837152200.00
(2) Shuicheng Ruitong a majority-owned subsidiary of the Company obtained a pledged loan
of RMB679236600.00 (wherein RMB29.00 million was included in the long-term borrowings
due within one year) from Shuicheng County Sub-branch of Agricultural Development Bank of
China. This loan was pledged with the income from feasibility gap subsidies receivable by
Shuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement of
Rural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold Mantis
Enterprise (Group) Co. Ltd.
(3) Xi'an Jinchuang a majority-owned subsidiary of the Company obtained a pledged loan of
RMB207152200.00 (wherein RMB22.00 million was included in the long-term borrowings due
within one year) from Xi'an High-tech Development Zone Sub-branch of Bank of China Limited.This loan was pledged with the expected returns under the PPP Project Contract for the Xi'an
Entrepreneurial Coffee Characteristic Street Reconstruction and Construction.
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in Bonds Payable (Exclusive of Preference Shares Perpetual Bonds and Other Financial
Instruments Classified as Financial Liabilities)
Unit: RMB
Bond
name
Nominal
value
Date of
issue
Term
Issued
amount
Opening
balance
Issued in
the
current
period
Interest
accrued
based on
nominal
value
Amortizat
ion of
premium
or
discount
Repaid in
the
current
period
Closing
balance
Total -- -- --
(3) Conditions and Time for Conversion of Convertible Corporate Bonds to Shares
(4) Other Financial Instruments Classified as Financial Liabilities
Basic information about issued and outstanding preference shares perpetual bonds and other financial instruments as at the
period-end:
Changes in issued and outstanding preference shares perpetual bonds and other financial instruments as at the period-end:
Unit: RMB
Issued and
outstanding
financial
instruments
Period-begin
Increase in the current
period
Decrease in the current
period
Period-end
Number
Carrying
amount
Number
Carrying
amount
Number
Carrying
amount
Number
Carrying
amount
Basis for the classification of other financial instruments as financial liabilities:
Other information:
47. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
48. Long-term Payables
Unit: RMB
Item Closing balance Opening balance
(1) Long-term Payables by Nature
Unit: RMB
Item Closing balance Opening balance
Other information:
(2) Specific Payables
Unit: RMB
Item Opening balance
Increase in the
current period
Decrease in the
current period
Closing balance
Reason for specific
payable
Other information:
49. Long-term Employee Benefits Payable
(1) Long-term Employee Benefits Payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in Defined Benefit Schemes
Present value of defined benefit schemes:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Scheme assets:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Net liabilities (net assets) of defined benefit schemes:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Contents risks as well as effects on the Company’s future cash flows time and uncertainty with respect to defined benef it schemes:
Substantial actuarial assumptions and sensitivity analysis of defined benefit schemes:
Other information:
50. Provisions
Unit: RMB
Item Closing balance Opening balance Reason for provision
Other information including substantial assumptions and estimates with respect to significant provisions:
51. Deferred Income
Unit: RMB
Item Opening balance
Increase in the
current period
Decrease in the
current period
Closing balance
Reason for deferred
income
Deferred income associated with government grants:
Unit: RMB
Liabilities
Opening
balance
New
government
grants in the
current
period
Amount
recognized
in
non-operatin
g income in
the current
period
Amount
recognized
in other
income in
the current
period
Amount
offsetting
costs and
expenses in
the current
period
Other
changes
Closing balance
Related to
assets/incom
e
Other information:
52. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
53. Share Capital
Unit: RMB
Opening
balance
Increase/decrease in the current period
Closing
balance New issues
Shares as
dividend
converted from
profit
Shares as
dividend
converted from
capital reserves
Others Subtotal
Total share
capital
2676408689.
00
8000000.00 -1050000.00 6950000.00
2683358689.
00
Other information:
In January 2020 in accordance with the Proposal on the Company's Restricted Share Incentive
Scheme in 2018 (Draft) and its Summary reviewed and approved at the 1st Extraordinary General
Meeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board
of Directors restricted shares were granted to 14 restricted share incentive objects including Wang
Zhenlong and Gao Hongqiang increasing its registered capital by RMB8.00 million to
RMB2684408689.
In May 2020 in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Repo and Cancellation of Part of Restricted Shares of the Company which were
reviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020 as Yang Peng and
Xie Jinan the original incentive objects had left the Company the Company repurchased and
canceled 1050000 restricted shares granted to them but not yet unlocked reducing its registered
capital by RMB1050000. After the completion of the repurchase and cancellation its registered
capital was changed to RMB2683358689.
54. Other Equity Instruments
(1) Basic Information about Issued and Outstanding Preference Shares Perpetual Bonds and Other
Financial Instruments as at the Period-end
(2) Changes in Issued and Outstanding Preference Shares Perpetual Bonds and Other Financial
Instruments as at the Period-end
Unit: RMB
Issued and
outstanding
financial
Period-begin
Increase in the current
period
Decrease in the current
period
Period-end
Number Carrying Number Carrying Number Carrying Number Carrying
instruments amount amount amount amount
Changes in other equity instruments in the current period reasons for changes and basis for the relevant accounting treatments:
Other information:
55. Capital Reserves
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
Capital surplus (share
capital surplus)
257708926.09 67148800.00 324857726.09
Other capital reserves 84466463.78 5623192.92 46224066.59 43865590.11
Total 342175389.87 72771992.92 46224066.59 368723316.20
Other information including changes in the current period and reasons for changes:
(1) In January 2020 in accordance with the Proposal on the Company's 2018 Restricted Share
Incentive Scheme (Draft) and Its Summary deliberated and approved at the Company's 1st
Extraordinary General Meeting of 2018 and the resolution of the 1st Extraordinary Meeting of the
6th Board of Directors the Company granted restricted shares to 14 restricted share incentive
objects including Wang Zhenlong and Gao Hongqiang and increased its registered capital by
RMB8.00 million. The issue price per share was RMB4.01 and the total amount of funds raised
was RMB32.08 million of which RMB8.00 million were included in share capital and RMB24.08
million were included in capital reserves.
(2) RMB43068800.00 of other capital reserves accrued from the restricted shares lifted in the
first phase were transferred to the share capital premium from other capital reserves.
(3) The increase in other capital reserves was due to the share-based payment expense of
RMB3579199.92 recognized by the Employee Stock Ownership Plan and the deferred income tax
assets of RMB2043993.00 recognized in deductible temporary differences.
(4) In May 2020 in accordance with the resolution of the Company's 2019 Annual General
Meeting and the Proposal on Repurchase and Cancellation of Some Restricted Shares deliberated
and approved at the 5th Meeting of the 6th Board of Directors of 2020 Yang Peng and Xie Jinjun
the original incentive objects had left the Company and the Company repurchased and canceled
1050000.00 restricted shares granted to them but not yet unlocked decreasing other capital
reserves by RMB3139500.00 accordingly. Other capital reserves were reduced by RMB15766.59
through acquiring the equity of minority shareholders of Jindejin Construction in 2020.
56. Treasury Shares
Unit: RMB
Item Opening balance Increase in the current Decrease in the current Closing balance
period period
Restricted share
repurchase obligations
132069000.00 32080000.00 42553350.00 121595650.00
Total 132069000.00 32080000.00 42553350.00 121595650.00
Other information including changes in the current period and reasons for changes:
The increase in treasury shares for the current period was due to the Company's confirmation
of its obligation to repurchase the restricted shares granted to 14 restricted share incentive objects
including Wang Zhenlong and Gao Hongqiang in accordance with the Proposal on the Company's
2018 Restricted Share Incentive Scheme (Draft) and Its Summary deliberated and approved at the
Company's 1st Extraordinary General Meeting of 2018 and the resolution of the 1st Extraordinary
Meeting of the 6th Board of Directors.The reasons for the decrease in treasury shares for the current period are as follows: a) The
number of restricted shares unlocked this time was 9615000.00 in accordance with the resolution
of the Company's 2019 Annual General Meeting and the Proposal on the Achievement of Lifting
the Restriction Conditions in the First Lifting Restriction Period for the First Grant Portion of the
2018 Restricted Share Incentive Scheme; b) In accordance with the resolution of the Company's
2019 Annual General Meeting and the Proposal on Repurchase and Cancellation of Some
Restricted Shares deliberated and approved at the 5th Meeting of the 6th Board of Directors of
2020 Yang Peng and Xie Jinjun the original incentive objects had left the Company and did not
meet the incentive conditions so the Company repurchased and canceled 1050000.00 restricted
shares granted to them but not yet unlocked according to the relevant provisions of the Co mpany's
share incentive scheme.
57. Other Comprehensive Income
Unit: RMB
Item
Opening
balance
Amount generated in the current period
Closing
balance
Amount
before
income tax
generated
in the
current
period
Less: amount
previously
recognized in
other
comprehensi
ve income
and currently
transferred to
profit or loss
Less:
amount
previously
recognized
in other
comprehe
nsive
income
and
currently
transferred
to retained
earnings
Less:
Income
tax
expense
After-tax
amount
attributabl
e to the
Company
as the
parent
After-tax
amount
attributabl
e to
non-contro
lling
interests
II Other comprehensive income
that will be reclassified to profit or
loss
57504092.
23
-6721047
2.64
-6496666
7.89
-2243804
.75
-74625
75.66
Differences arising from
the translation of foreign
currency-denominated financial
statements
57504092.
23
-6721047
2.64
-6496666
7.89
-2243804
.75
-74625
75.66
Total other comprehensive income
57504092.
23
-6721047
2.64
-6496666
7.89
-2243804
.75
-74625
75.66
Other information including adjustments to the initially recognized amounts of hedged items transferred from the effective
gains/losses on cash flow hedges:
58. Specific Reserve
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
Other information including changes in the current period and reasons for changes:
59. Surplus Reserves
Unit: RMB
Item Opening balance
Increase in the current
period
Decrease in the current
period
Closing balance
Statutory surplus
reserves
1360046645.33 1360046645.33
Reserve funds 256728.58 256728.58
Enterprise development
funds
128364.29 128364.29
Total 1360431738.20 1360431738.20
Notes to surplus reserves including changes in the current period and reasons for changes:
Pursuant to the Company Law and the Company’s Articles of Association the Company may
cease to set aside staturoy surplus reserves when the amount reaches 50% of the registered capital.Therefore no statutory surplus reserves were set aside in the current period.
60. Retained Earnings
Unit: RMB
Item Current period Last year
Retained earnings as at the end of the prior year
before adjustment
10853403316.80 9236765808.55
Adjustment to opening retained earnings (“+” for
increase “-” for decrease)
34339607.55
Opening retained earnings after adjustment 10887742924.35 9236765808.55
Add: Net profit attributable to owners of the
Company as the parent in the current period
2373915319.52 2349395605.96
Less: Statutory surplus reserves set aside 197476359.91
Dividends payable to ordinary shareholders 536461737.80 535281737.80
Closing retained earnings 12725196506.07 10853403316.80
Details about the adjustments to the opening retained earnings:
1) Retrospective adjustments according to the new provisions of China’s Accounting Standards for Business Enterprises had an effect
of RMB on the opening retained earnings.
2) Changes in the accounting policies had an effect of RMB34339607.55 on the opening retained earnings.
3) Correction of significant accounting errors had an effect of RMB on the opening retained earnings.
4) Changes in the scope of the consolidated financial statements as a result of business combinations involving entities unde r
common control had an effect of RMB on the opening retained earnings.
5) All the other adjustments had an effect of RMB on the opening retained earnings.
61. Operating Revenue and Cost of Sales
Unit: RMB
Item
Current period Last year
Revenue Costs Revenue Costs
Core businesses 31167971029.28 26041232110.79 30792922689.83 25157121471.54
Other businesses 75256772.76 17203032.44 41731840.47 7671146.11
Total 31243227802.04 26058435143.23 30834654530.30 25164792617.65
Indicate whether the lower of the audited net profit before and after exceptional gains and losses was negative.□ Yes √ No
Revenue information:
Unit: RMB
By contract category Segment 1 Segment 2 Total
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Revenue recognized at a
point of time
445618706.74
Of which: sale of
materials
397248440.45
Other businesses 48370266.29
Revenue recognized in a
period of time
30797609095.30
Of which: construction
decoration services
30770722588.83
Other businesses 26886506.47
Total 31243227802.04
Information related to performance obligations:
(1) Description of performance obligations
The Company was mainly engaged in providing customers with construction decoration
services and sales of commodities. For construction decoration services the time of performance
obligations was basically consistent with the completion schedule of relevant construction
decoration projects; for sales of commodities the Company fulfilled its performance obligations
when a customer obtained control of the relevant commodities.
(2) Information related to residual performance obligations
The transaction price allocated by the Company to outstanding performance obligations was
RMB27619.00 million.
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period the amount of income corresponding to performance obligations that had been contracted but not
yet performed or fulfilled was RMB27618801181.67 of which RMB was expected to be recognized in year RMB
was expected to be recognized in year and RMB was expected to be recognized in year .Other information:
(1) Top Five Customers with Respect to Operating Revenue
Customer Operating revenue generated from
the customer
As a % of the total operating
revenue
Customer 1 6835504535.80 21.88
Customer 2 1108396916.19 3.55
Customer 3 344326369.83 1.10
Customer 4 262020032.31 0.84
Customer 5 218894281.29 0.70
Total 8769142135.42 28.07
62. Taxes and Levies
Unit: RMB
Item Current period Last year
Urban construction and maintenance tax 55855981.52 46319546.93
Education surcharges 41519006.73 34598184.77
Property tax 8502794.69 10285422.97
Others 2300729.28 3403046.52
Total 108178512.22 94606201.19
Other information:
63. Selling Expense
Unit: RMB
Item Current period Last year
Employee remunerations 294401884.28 477450034.19
Advertising expense 21122989.52 79284371.75
Office expense 15176281.47 19874241.29
Engineering and maintenance expense 13474157.01 5375199.45
Rental expense 12018057.83 14074034.11
Travel expense 7409577.77 25525116.67
Business entertainment expense 4723641.82 13913412.42
Warehouse management expense 5316033.23 9393363.80
Others 2321878.37 5904412.06
Total 375964501.30 650794185.74
Other information:
Selling expense declined 42.23% in 2020 compared to 2019 primarily driven by decreases inthe remuneration of sales staff and advertising expense as a result of the disposal of “Gold MantisHome” subsidiaries in the current period.
64. Administrative Expense
Unit: RMB
Item Current period Last year
Employee remunerations 372598225.30 554760128.43
Depreciation and amortization 96738585.25 96803408.08
Office expense 54265803.69 96067570.13
Rental expense 35355434.42 101104062.39
Professional service charges 17910468.81 17579509.98
Travel expense 7375073.69 21627518.85
Expense related to announcements
disclosed as a listed company
4912248.79 3506486.74
Business entertainment expense 3775927.56 5309900.30
Share-based payments 3579199.92 83287700.04
Others 8335121.04 21739085.55
Total 604846088.47 1001785370.49
Other information:
Administrative expense declined 39.62% in 2020 compared to 2019 primarily driven by
decreases in salaries of management personnel and rental expense as a result of the disposal of
“Gold Mantis Home” subsidiaries as well as a decrease in share-based payments due to the exercise
conditions for the second equity incentive plan not being satisfied in the current period.
65. R&D Expense
Unit: RMB
Item Current period Last year
Employee remunerations 495211608.31 449251541.77
Material expense 405454506.46 360167890.71
Depreciation and amortization 13029926.57 8838063.56
Other expense 42086292.84 61608627.46
Total 955782334.18 879866123.50
Other information:
66. Finance Costs
Unit: RMB
Item Current period Last year
Interest expense 145524591.79 142341566.80
Less: Interest income 41474553.83 26670537.36
Net interest expense 104050037.96 115671029.44
Exchange loss 12175656.00 17055789.03
Less: Exchange gain 1746689.18 8837316.53
Net exchange loss 10428966.82 8218472.50
Bank service charges 16687064.12 10997277.41
Total 131166068.90 134886779.35
Other information:
67. Other Income
Unit: RMB
Source of other income Current period Last year
I Government grants recognized in other
income
51537845.33 18708430.13
Of which: Government grants related to
deferred income (related to income)
120000.00
Government grants directly recognized in
profit or loss (related to income)
51537845.33 18588430.13
II Other items related to routine operations
and recognized in other income
3146250.49 951654.81
Of which: income of service charges for
individual income tax withholding and
payment
2705907.39 726275.35
Over-deduction in the calculation of the
taxable amount with respect to the input
tax
440343.10 225379.46
Total 54684095.82 19660084.94
68. Return on Investment
Unit: RMB
Item Current period Last year
Return on long-term equity investments
measured using the equity method
-9556696.62 -6162676.00
Income from the disposal of long-term equity
investments
17214943.35 -24693657.12
Income from the disposal of held-for-trading
financial assets
35183316.32 40843523.94
Income derived during the period of holding
other non-current financial assets
887120.46 4367000.00
Interest expense on discounted receivables
financing
-6080300.20 -4929353.47
Income from the disposal of other non-current
financial assets
23774839.16
Total 37648383.31 33199676.51
Other information:
69. Net Gain on Exposure Hedges
Unit: RMB
Item Current period Last year
Other information:
70. Gain on Changes in Fair Value
Unit: RMB
Source of gain on changes in fair value Current period Last year
Held-for-trading financial assets -723913.69 4210654.74
Other non-current financial assets -64000000.00
Total -723913.69 -59789345.26
Other information:
Gain on changes in fair value rose significantly in 2020 compared to 2019 primarily driven by
a larger loss on changes in the fair value of other non-current financial assets in last year.
71. Credit Impairment Loss
Unit: RMB
Item Current period Last year
Loss on uncollectible other receivables -3601882.53 -8043363.13
Loss on uncollectible long-term
receivables
-902874.64 -14531680.93
Loss on uncollectible notes receivable -136199708.59 -44096551.18
Loss on uncollectible accounts receivable -311064791.60 -138107794.47
Loss on uncollectible current portion of -585904.50 -316988.07
non-current assets
Total -452355161.86 -205096377.78
Other information:
Credit impairment loss declined significantly in 2020 compared to 2019 primarily driven by a
larger amount of impairment allowances for financial assets.
72. Asset Impairment Loss
Unit: RMB
Item Current period Last year
II Inventory valuation loss and loss on
impairments of contract performance costs
-370047.03 -3651.14
XII Loss on impairments of contract assets 66443131.80
Total 66073084.77 -3651.14
Other information:
Asset impairment loss rose significantly in 2020 compared to 2019 primarily driven by a
decrease in the loss on impairments of contract assets according to the new accounting standards
governing revenue.
73. Asset Disposal Income
Unit: RMB
Source of asset disposal income Current period Last year
Gains or losses on the disposal of fixed
assets construction in progress productive
living assets and intangible assets that are
not classified as assets held for sale:
114042.29 -1219850.07
Of which: gains on the disposal of f ixed
assets
-86876.56 -1068083.07
Gains on the disposal of intangible assets 200918.85 -151767.00
Total 114042.29 -1219850.07
74. Non-operating Income
Unit: RMB
Item Current period Last year Amount recognized in
exceptional gains and losses
Compensation income 2668000.00
Others 285660.49 2282546.95 285660.49
Total 285660.49 4950546.95 285660.49
Government grants recognized in profit or loss:
Unit: RMB
Government
grant
Giver Reason Nature
Whether the
grant turned
the current
profit to loss
or otherwise
Special grant
or not
Amount in
the current
period
Amount in
last year
Related to
assets/income
Other information:
(1) Non-operating income declined 94.23% in 2020 compared to 2019 primarily driven by a
larger amount of current accounts that required no payment for a long term being cleared in last
year.
75. Non-operating Expense
Unit: RMB
Item Current period Last year
Amount recognized in
exceptional gains and losses
Donations 3020000.00 3002930.00 3020000.00
Loss on the retirement of fixed
assets
627978.98 593033.19 627978.98
Others 650761.35 937487.15 650761.35
Total 4298740.33 4533450.34 4298740.33
Other information:
76. Income Tax Expense
(1) Income Tax Expense
Unit: RMB
Item Current period Last year
Current income tax expense 392581912.71 487731992.41
Deferred income tax expense -22908080.83 -53345670.94
Total 369673831.88 434386321.47
(2) Reconciliation between Accounting Profit and Income Tax Expense
Unit: RMB
Item Current period
Gross profit 2710282604.54
Income tax expense based on the statutory/applicable tax rates 406542390.68
Effects of different tax rates of subsidiaries 10153600.55
Effects of adjustments to income tax of the prior period 412552.31
Effects of non-deductible costs expenses and losses 32723291.07
Effects of deductible temporary differences or losses on which
deferred income tax assets are unrecognized in the current period
19370957.52
Over-deduction in the calculation of the taxable amount in
relation to R&D expense
-99528960.25
Income tax expense 369673831.88
Other information:
77. Other comprehensive income
See Note “VII 57. Other Comprehensive Income”.
78. Items of the Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Current period Last year
Government grants 54243752.72 19314705.48
Security deposits 38639283.63 12164458.38
Current accounts 272932984.67
Others 285660.49 4950546.95
Total 93168696.84 309362695.48
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Current period Last year
Current accounts 300985139.99
Office expense 69442085.16 115941811.42
Rental expense 47373492.25 115178096.50
Advertising expense 21122989.52 79284371.75
Professional service charges 17910468.81 17579509.98
Travel expense 14784651.46 47152635.52
Engineering and maintenance expense 13474157.01 5375199.45
Business entertainment expense 8499569.38 19223312.72
Warehouse management expense 5316033.23 9393363.80
Others 32422342.72 55501534.83
Total 531330929.53 464629835.97
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Current period Last year
Interest income 40803606.39 28232114.75
Total 40803606.39 28232114.75
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Current period Last year
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Current period Last year
Frozen bank deposits 8947438.58
Total 8947438.58
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Current period Last year
Frozen bank deposits 25511610.47
Total 25511610.47
Notes:
79. Supplementary Information to the Cash Flow Statement
(1) Supplementary Information to the Cash Flow Statement
Unit: RMB
Supplementary information Current period Last year
1. Reconciliation of net profit to net cash
generated from/used in investing activities:
-- --
Net profit 2340608772.66 2260704564.72
Add: Asset impairment allowances 386282077.09 205100028.92
Depreciation of fixed assets
depletion of oil and gas assets and
depreciation of productive living assets
58820036.99 60985956.45
Depreciation of right-of-use assets
Amortization of intangible assets 9996064.73 11453586.40
Amortization of long-term prepaid
expense
60823876.16 78668662.21
Loss on the disposal of fixed
assets intangible assets and other long-term
assets (“-” for gain)
-114042.29 1219850.07
Loss on the retirement of fixed
assets (“-” for gain)
627978.98 593033.19
Loss on changes in fair value (“-”
for gain)
723913.69 59789345.26
Finance costs (“-” for income) 114479004.78 123889501.94
Loss on investment (“-” for
income)
-37648383.31 -33199676.51
Decrease in deferred income tax
assets (“-” for increase)
-24140360.89 -54169370.60
Increase in deferred income tax
liabilities (“-” for decrease)
1232280.06 -355064.07
Decrease in inventories (“-” for
increase)
47132200.21 66478131.93
Decrease in operating receivables
(“-” for increase)
-5414546457.53 -5098334086.39
Increase in operating payables 4229259080.91 3989107819.15
(“-” for decrease)
Others 3579199.92 83287700.04
Net cash generated from/used in
operating activities
1777115242.16 1755219982.71
2. Significant investing and financing
activities that involve no cash proceeds or
payments:
-- --
Conversion of debt to capital
Current portion of convertible corporate
bonds
Fixed assets leased in in finance leases
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 6354809671.18 6051660327.62
Less: Opening balance of cash 6051660327.62 3069373348.80
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
equivalents
303149343.56 2982286978.82
(2) Net Cash Payments for the Acquisition of Subsidiaries in the Current Period
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other information:
(3) Net Cash Proceeds from the Disposal of Subsidiaries in the Current Period
Unit: RMB
Amount
Cash or cash equivalents received in the current period from the
disposal of subsidiaries in the current period
18588895.83
Of which: --
Of which: --
Of which: --
Net cash proceeds from the disposal of subsidiaries 18588895.83
Other information:
(4) Breakdown of Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I Cash 6354809671.18 6051660327.62
Of which: Cash on hand 1518895.79 2317047.77
Bank deposits that can be readily
drawn on demand
5254913683.74 5072367997.44
Other monetary assets that can be
readily drawn on demand
1098377091.65 976975282.41
III Cash and cash equivalents end of the
period
6354809671.18 6051660327.62
Other information:
Cash and cash equivalents at the period-end excluded frozen bank deposits of
RMB16564171.89 and the accrued interest of RMB1258002.65 and cash and cash equivalents at
the period-begin excluded frozen bank deposits of RMB25511610.47 and the accrued interest of
RMB587055.21.
80. Notes to Changes in Owners’ Equity
Items and adjusted amounts in “others” with respect to adjustments to the closing balance of last year:
81. Assets with Restricted Ownership or Rights-of-Use
Unit: RMB
Item Closing carrying amount Reason for restriction
Monetary assets 16564171.89 Frozen by court of law
Notes receivable 1300000.00 Put in pledge for notes issuing
Notes receivable 1901286639.74
Un-derecognized endorsed or discounted
commercial notes
Accounts receivable 103990224.42
Un-derecognized factored accounts
receivable
Receivables financing 82472805.60 Put in pledge for notes issuing
Total 2105613841.65 --
Other information:
82. Monetary Items Denominated in Foreign Currencies
(1) Monetary Items Denominated in Foreign Currencies
Unit: RMB
Item
Closing balance in foreign
currency
Exchange rate Closing balance in RMB
Monetary assets -- -- 570578604.38
Of which: USD 63547161.55 6.5249 414638874.40
EUR 173860.01 8.0250 1395226.58
HKD 25362615.36 0.8416 21345177.09
INR 373768605.55 0.0894 33414913.34
NZD 4471148.69 4.9314 22049022.65
GBP 2321106.77 8.8903 20635335.52
Peso 89067923.52 0.1358 12095424.01
VDN 31765596549.00 0.0003 9529678.96
LKR 247525314.57 0.0352 8712891.07
AED 4605039.24 1.7777 8186378.26
PHP 52743149.87 0.1358 7162519.75
JPY 80333391.84 0.0632 5077070.36
IDR 6677112867.20 0.0005 3338556.43
MYR 873339.57 1.6230 1417430.12
KRW 147006638.94 0.0060 882039.83
THB 2287637.73 0.2179 498476.26
RUB 1518752.75 0.0877 133194.62
AUD 10783.13 5.0163 54091.42
YTL 7199.02 0.8837 6361.77
CHF 802.90 7.4006 5941.94
Accounts receivable -- -- 510490705.59
Of which: USD 45864791.43 6.5249 299263177.60
EUR
HKD 182121049.60 0.8416 153273075.34
Peso 160377255.27 0.1358 21779231.27
AED 2414009.70 1.7777 4291385.04
SGD 752025.06 4.9314 3708536.38
VDN 93917666532.70 0.0003 28175299.96
Long-term borrowings -- --
Of which: USD
EUR
HKD
Other receivables 43708590.49
Of which: AED 809690.22 1.7777 1439386.30
HKD 16062828.77 0.8416 13518476.69
USD 4352996.00 6.5249 28402863.60
LKR 4102902.55 0.03517 144299.08
SGD 24300.00 4.9314 119833.02
VDN 279106000.00 0.0003 83731.80
Accounts payable 213950991.90
Of which: Peso 110668483.80 0.1358 15028780.10
AED 130880.25 1.7777 232665.82
HKD 145438796.60 0.8416 122401291.22
USD 8747400.00 6.5249 57075910.26
VDN 64041148331.28 0.0003 19212344.50
Other payables 167771375.72
Of which: Peso 133428.29 0.1358 18119.56
AED 4266766.23 1.7777 7585030.33
HKD 103820984.18 0.8416 87375740.29
USD 10333887.31 6.5249 67427581.31
LKR 280079.39 0.03517 9850.39
SGD 17943.02 4.9314 88484.21
VDN 17555232091.71 0.0003 5266569.63
Short-term borrowings 195747000.00
Of which: USD 30000000.00 6.5249 195747000.00
Other information:
(2) Overseas Business Entities (for substantial overseas business entities the following information shall be
disclosed: principal place of business functional currency and basis for the choice change of functional
currency and reasons)
√ Applicable □ Not applicable
Serial
No.Overseas business entities Principal place of
business
Functional currency
1 Singapore Gold Mantis Pte. Ltd. Singapore SGD
2 HBA Holdings Pte. Ltd. Singapore USD
3 Gold Mantis (International) Construction
Decoration Limited
Hong Kong China HKD
4 Russia Gold Mantis Construction Decoration Co.
Ltd.Russia RUB
5 JTL Fit Out Middle East L.L.C. Dubai AED
6 Gold Mantis Construction Decoration (CNMI)
LLC
Northern Mariana
Islands
USD
7 Gold Mantis Building Decoration (Cambodia) Co.
Ltd.
Cambodia USD
8 Gold Mantis International Development Pte. Ltd. Singapore SGD
9 Gold Mantis (Vietnam) Construction Company
Limited
Vietnam VDN
10 Gold Mantis (HK) Construction Decoration
Limited
Hong Kong China HKD
11 Gold Mantis (Lanka) Construction (Private)
Limited
Sri Lanka LKR
12 Sierra Gold Mantis Joint Venture (Private) Limited Sri Lanka LKR
13 GMI Construction Corp. The Phillipines PHP
14 M+ Design Associates Pte. Ltd. Singapore SGD
15 GMI International Inc. The Phillipines PHP
83. Hedges
Hedged items by type and the relevant hedging instruments as well as the qualitative and quantitative information of the hedged
risks:
84. Government Grants
(1) Basic Information of Government Grants
Unit: RMB
Type Amount Recognized in
Amount recognized in profit or
loss
Pandemic-related subsidies 38451162.89 Other income 38451162.89
Employment stability subsidies 5231811.57 Other income 3404599.39
Rebates of individual income
tax
3432182.74 Other income 2705907.39
Anti-pandemic training
subsidies
2611500.00 Other income 2611500.00
Policy support funds for the
service industry
2750000.00 Other income 2500000.00
Rewards for excellent
enterprises
1040000.00 Other income 740000.00
Internship subsidies 2319104.00 Other income 646258.00
R&D subsidies 10198348.06 Other income 600000.00
Rewards for superior national
enterprises for demonstration in
relation to intellectual
properties
1396500.00 Other income 596500.00
Over-deduction in the
calculation of the taxable
amount with respect to value
added tax
665722.56 Other income 440343.10
Subsidies for the development
of the cultural industry
420000.00 Other income 420000.00
Cultural and sports guiding
funds
900000.00 Other income 400000.00
Comprehensive rewards for
high-quality development
700000.00 Other income 300000.00
Rewards for talent projects 750821.50 Other income 247500.00
Patent subsidies 452470.00 Other income 229470.00
Training subsidies 52000.00 Other income 52000.00
Energy conservation and
emission reduction guiding
funds
1500000.00 Other income
The second batch of rewards of
2018 of the Publicity
Department
580000.00 Other income
Internship base subsidies 176312.00 Other income
Others 596245.44 Other income 338855.05
Total 74224180.76 54684095.82
(2) Government Grants Returned
□ Applicable √ Not applicable
Other information:
Note: HBA a majority-owned subsidiary of the Company’s subsidiary Singapore Gold Mantis
received pandemic-related government grants in the total amount of RMB38451162.89 in 2020.
85. Other
VIII Changes in the Scope of the Consolidated Financial Statements
1. Business Combinations Not Involving Entities under Common Control
(1) Business Combinations Not Involving Entities under Common Control in the Current Period
Unit: RMB
Acquiree
Time of
obtaining the
equity
interests
Cost
Equity-holdin
g percentage
Way of
obtaining the
equity
interests
Date of
acquisition
Basis for the
determination
of the
acquisition
date
Revenue of
the acquiree
from the date
of acquisition
to the
period-end
Net profit of
the acquiree
from the date
of acquisition
to the
period-end
Other information:
(2) Cost of Acquisition and Goodwill
Unit: RMB
Cost of acquisition
Method for the determination of the fair value of the cost of acquisition contingent consideration and changes:
Primary reasons for goodwill of a large amount:
Other information:
(3) Identifiable Assets and Liabilities of Acquirees on the Date of Acquisition
Unit: RMB
Fair value at the date of acquisition Carrying amount at the date of acquisition
Method for the determination of the fair value of the identifiable assets and liabilities:
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
(4) Gains or Losses Arising from the Remeasurement at Fair Value of Equity Interests Held before the
Dates of Acquisition
Indicate whether there were business combinations which were achieved by stages and of which control was obtained in the
Reporting Period.□ Yes √ No
(5) Inability to Reasonably Determine the Acquisition Consideration or the Fair Value of Acquirees’
Identifiable Assets and Liabilities at Acquisition Dates or the Period-ends of the Combinations
(6) Other information:
2. Business Combinations Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control in the Current Period
Unit: RMB
Acquiree
Equity
percentage
obtained in
the business
combination
Basis for
constituting a
business
combination
involving
entities under
common
control
Date of
acquisition
Basis for the
determination
of the
acquisition
date
Revenue of
the acquiree
from the
period-begin
of the
combination
to the
acquisition
date
Net profit of
the acquiree
from the
period-begin
of the
combination
to the
acquisition
date
Revenue of
the acquiree
in the
comparative
period
Net profit of
the acquiree
in the
comparative
period
Other information:
(2) Cost of Acquisition
Unit: RMB
Cost of acquisition
Contingent considerations and changes:
Other information:
(3) Carrying Amounts of Acquirees’ Assets and Liabilities at Dates of Acquisition
Unit: RMB
Date of acquisition End of last year
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
3. Counter-purchases
Basic transaction information basis for the constitution of a counter-purchase assets retained by the Company whether the liabilities
constitute business and why determination of the cost of combination adjustments to equities and computing when treating the
transaction as an equity transaction:
4. Disposal of Subsidiaries
Indicate whether there was any transaction where the Company ceased to control the subsidiary in a single disposal of its investment
in the subsidiary.√ Yes □ No
Unit: RMB
Subsidia
ry
Equity
disposal
price
Equity
percenta
ge
disposed
of
Way of
disposal
Time of
cease of
control
Basis for
the
determin
ation of
the time
of cease
of
control
Differen
ce
between
the
disposal
price
and the
share of
net
assets of
the
subsidia
ry in the
consolid
ated
financial
stateme
nts
correspo
nding to
the
disposed
investm
ent
Remainin
g equity
percentag
e on the
date of
cease of
control
Carrying
amount
of the
remainin
g
equity-h
oldings
on the
date of
cease of
control
Fair
value of
the
remainin
g
equity-h
oldings
on the
date of
cease of
control
Gain/los
s on
remeasur
ement of
the
remainin
g
equity-h
oldings
at fair
value
Method
for the
determin
ation of
the fair
value of
the
remainin
g
equity-h
oldings
on the
date of
cease of
control
and
major
assumpti
ons
Amount
transferr
ed from
other
compreh
ensive
income
related to
the
previous
equity
investme
nt in the
subsidiar
y to
return on
investme
nt
Nantong
Gold
Mantis
Home
E-comm
erce Co.Ltd.
697500.
00
70.00%
Equity
transfer
31
January
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-54197
0.34
0.00%
Ankang
Gold
Mantis
Home
E-comm
erce Co.Ltd.
428800.
00
60.00%
Equity
transfer
31
January
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-24343.
97
0.00%
Baoji
Gold
Mantis
Home
E-comm
erce Co.Ltd.
577700.
00
51.00%
Equity
transfer
31
January
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-37377
0.44
0.00%
Qingdao
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 77.50%
Equity
transfer
31
January
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-26326
48.22
0.00%
Leshan
Gold
Mantis
Home
E-comm
erce Co.Ltd.
0.00 51.00%
Equity
transfer
28
February
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-56778
5.36
0.00%
Taizhou
Gold
Mantis
0.00 75.00%
Equity
transfer
28
February
2020
Earlier
of
de-regist
216735
5.98
0.00%
Home
E-comm
erce Co.Ltd.ration
and over
50%
payment
of the
transfer
price
Nanjing
Gold
Mantis
Home
Decorati
on
E-comm
erce Co.Ltd.
1.00 70.00%
Equity
transfer
31
March
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-74375
1.67
0.00%
Zhengzh
ou Gold
Mantis
Home
E-comm
erce Co.Ltd.
910900.
00
88.00%
Equity
transfer
31
March
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-71720
8.07
0.00%
Jining
Gold
Mantis
Home
E-comm
erce Co.Ltd.
300000.
00
51.00%
Equity
transfer
31
March
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-11685
2.86
0.00%
Changsh
u Gold
Mantis
Home
E-comm
erce Co.
172893
0.00
70.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
835947.
90
0.00%
Ltd. payment
of the
transfer
price
Kunshan
Gold
Mantis
Home
E-comm
erce Co.Ltd.
225960
0.00
70.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-80315
6.54
0.00%
Yanchen
g Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 70.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-33310
3.62
0.00%
Jinhua
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
119525.
82
0.00%
Linyi
Gold
Mantis
Home
E-comm
erce Co.Ltd.
550000.
00
55.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
-111127
.44
0.00%
price
Langfan
g Gold
Mantis
Home
E-comm
erce Co.Ltd.
712100.
00
51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-13485
6.15
0.00%
Handan
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
359811.
95
0.00%
Suqian
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 80.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
930402.
25
0.00%
Zhuhai
Gold
Mantis
Home
E-comm
erce Co.Ltd.
316569.
00
51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
50556.8
8
0.00%
Taixing
Gold
1.00 70.00%
Equity
transfer
30 April
2020
Earlier
of
81251.2
1
0.00%
Mantis
Home
E-comm
erce Co.Ltd.de-regist
ration
and over
50%
payment
of the
transfer
price
Lanzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
109245
0.00
70.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-32443.
92
0.00%
Huaihua
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-10633
8.92
0.00%
Xinxiang
Gold
Mantis
Home
E-comm
erce Co.Ltd.
555000.
00
51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
552558.
78
0.00%
Siyang
Gold
Mantis
Home
E-comm
923900.
00
51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
-97997.
46
0.00%
erce Co.Ltd.
50%
payment
of the
transfer
price
Shenzhe
n Gold
Mantis
Home
Decorati
on Co.
Ltd.
145260
0.00
51.00%
Equity
transfer
30 April
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
660330.
82
0.00%
Shanghai
Qingcha
n Space
Decorati
on
Design
and
Engineer
ing Co.Ltd.
100000
0.00
70.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
988376.
19
0.00%
Wuxi
Gold
Mantis
Home
E-comm
erce Co.Ltd.
341070
0.00
70.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
481572.
27
0.00%
Zhongsh
an Gold
Mantis
Home
E-comm
erce Co.Ltd.
230837
0.65
70.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
377432.
16
0.00%
transfer
price
Binzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
918600.
00
51.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
303257.
22
0.00%
Yangzho
ng Gold
Mantis
Home
E-comm
erce Co.Ltd.
104473
8.66
51.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
411995.
01
0.00%
Suzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
120000
0.00
78.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
334344.
24
0.00%
Changzh
ou Gold
Mantis
Home
E-comm
erce Co.Ltd.
209350
0.00
70.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
92537.6
2
0.00%
Ningguo 1.00 100.00% Equity 31 May Earlier 134423 0.00%
Gold
Mantis
Home
E-comm
erce Co.Ltd.transfer 2020 of
de-regist
ration
and over
50%
payment
of the
transfer
price
1.44
Yibin
Gold
Mantis
Home
E-comm
erce Co.Ltd.
0.00 51.00%
Equity
transfer
31 May
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-52251
5.68
0.00%
Shanghai
Gold
Mantis
Home
E-comm
erce Co.Ltd.
110000
0.00
98.72%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
223078
0.65
0.00%
Xuzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
115690
0.00
70.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
308106
7.84
0.00%
Wuhu
Gold
Mantis
Home
750000.
00
51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
544176.
57
0.00%
E-comm
erce Co.Ltd.and over
50%
payment
of the
transfer
price
Gold
Mantis
Home
(Shangha
i)
Decorati
on Co.
Ltd.
1.00 100.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
664376.
19
0.00%
Danyang
Gold
Mantis
Home
E-comm
erce Co.Ltd.
153000
0.00
51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
774640.
67
0.00%
Ma’ansh
an Gold
Mantis
Home
E-comm
erce Co.Ltd.
0.00 0.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
177628
2.05
0.00%
Lianyun
gang
Gold
Mantis
Home
E-comm
erce Co.
276050
0.00
80.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
792026.
05
0.00%
Ltd. of the
transfer
price
Yiwu
Gold
Mantis
Home
E-comm
erce Co.Ltd.
170000
0.00
51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
44146.8
3
0.00%
Zhuji
Gold
Mantis
Home
E-comm
erce Co.Ltd.
95000.0
0
51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
191964.
33
0.00%
Qujing
Gold
Mantis
Home
E-comm
erce Co.Ltd.
1.00 51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
97461.7
0
0.00%
Huainan
Gold
Mantis
Home
Decorati
on
Engineer
ing Co.Ltd.
450000.
00
70.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-44440
7.55
0.00%
Wuzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
428000.
00
51.00%
Equity
transfer
30 June
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-396.05 0.00%
Jinan
Gold
Mantis
Home
E-comm
erce Co.Ltd.
104200
0.00
70.00%
Equity
transfer
31 July
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-70336
6.79
0.00%
Sanming
Gold
Mantis
Home
E-comm
erce Co.Ltd.
258600.
00
70.00%
Equity
transfer
31
August
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-57761
3.43
0.00%
Xi’an
Gold
Mantis
Home
E-comm
erce Co.Ltd.
388300.
00
80.00%
Equity
transfer
31
August
2020
Earlier
of
de-regist
ration
and over
50%
payment
of the
transfer
price
-19160
93.27
0.00%
Hefei
Gold
Mantis
0.00 100.00%
De-regist
ration
31
Decemb
er 2020
Time of
de-regist
ration
459496.
35
0.00%
Home
E-comm
erce Co.Ltd.
Baoding
Gold
Mantis
Home
E-comm
erce Co.Ltd.
0.00 51.00%
De-regist
ration
31
Decemb
er 2020
Time of
de-regist
ration
-16928
54.00
0.00%
Liuzhou
Gold
Mantis
Home
E-comm
erce Co.Ltd.
0.00 100.00%
De-regist
ration
31
Decemb
er 2020
Time of
de-regist
ration
-6418.1
0
0.00%
Suzhou
Miaoyu
Construc
tion
Materials
Co. Ltd.
0.00 100.00%
De-regist
ration
30
Novemb
er 2020
Time of
de-regist
ration
0.00 0.00%
Other information:
1. Disposal of Subsidiaries
In the current period Home Decoration E-commerce a subsidiary of Gold Mantis
Prefabricated Construction Technology transferred or de-registered 51 “Gold Mantis Home”
subsidiaries and Gold Mantis Curtain Wall a subsidiary of the Company de-registered Suzhou
Miaoyu Construction Materials Co. Ltd. These transferred or de-registered entities were therefore
excluded from the consolidated financial statements of the current period.Indicate whether there was any disposal of the investment in a subsidiary which was carried out by stages and where control o ver the
subsidiary ceased in the Reporting Period.□ Yes √ No
5. Changes in the Scope of the Consoldiated Financial Statements due to Other Reasons
Changes in the scope of the consoldiated financial statements due to other reasons (incorporation liquidation etc.):
In the current period Gold Mantis International a subsidiary of the Company incorporated
Jining Gold Mantis Construction Engineering Co. Ltd. and Gold Mantis Landscape a subsidiary
of the Company incorporated Hangzhou Gold Mantis Landscape Co. Ltd. These newly
incorporated entities were added to the consolidated financial statements of the current period.6. Other
IX Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the Group
Subsidiary
Principal place of
business
Place of
registration
Nature of
business
The Company’s interest How the
subsidiary was
obtained
Direct Indirect
Suzhou Meiruide
Construction
Decoration Co.
Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Business
combination
involving entities
under common
control
Suzhou Meiruide
Construction
Materials Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Suzhou Industrial
Park Gold Mantis
Furniture Design
and
Manufacturing
Co. Ltd.
Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Furniture design
and
manufacturing
100.00%
Business
combination
involving entities
under common
control
Suzhou Gold
Mantis Curtain
Wall Co. Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Curtain wall
production
100.00%
Business
combination not
involving entities
under common
control
Qidong Gold
Mantis Curtain
Wall Co. Ltd.Qidong City
Jiangsu Province
China
Qidong City
Jiangsu Province
China
Curtain wall
production
100.00%
Incorporation
with capital
contribution
Suzhou Gold
Mantis Landscape
Co. Ltd.
Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Landscaping 100.00%
Incorporation
with capital
contribution
Jiangsu Gold
Mantis
Horticultural Co.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Landscaping 100.00%
Incorporation
with capital
contribution
Ltd.
Datong Gold
Mantis Landscape
Co. Ltd.
Datong City
Shanxi Province
China
Datong City
Shanxi Province
China
Landscaping 100.00%
Incorporation
with capital
contribution
Jining Economic
Development
Zone Gold
Mantis Landscape
Engineering Co.
Ltd.Jining City
Shandong
Province China
Jining City
Shandong
Province China
Landscaping 100.00%
Incorporation
with capital
contribution
Suzhou Gold
Mantis
Construction
Investment Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Investment
management
100.00%
Incorporation
with capital
contribution
Liaoning Gold
Mantis
Construction
Decoration Co.
Ltd.Shenyang City
Liaoning
Province China
Shenyang City
Liaoning
Province China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Singapore Gold
Mantis Pte. Ltd.Singapore Singapore
Construction
decoration
100.00%
Incorporation
with capital
contribution
HBA Holdings
Pte. Ltd. *1
Singapore Singapore
Construction
design
86.62%
Business
combination not
involving entities
under common
control
Gold Mantis
(International)
Construction
Decoration
Limited
Hong Kong Hong Kong
Construction
decoration
100.00%
Incorporation
with capital
contribution
Russia Gold
Mantis
Construction
Decoration Co.
Ltd.Russia Russia
Construction
decoration
100.00%
Incorporation
with capital
contribution
JTL Fit Out
Middle East
L.L.C.
Dubai Dubai
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
Construction
Decoration
(CNMI) LLC
Northern Mariana
Islands
Northern Mariana
Islands
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
Building
Decoration
(Cambodia) Co.
Ltd.
Cambodia Cambodia
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
International
Development Pte.
Ltd.Singapore Singapore
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
(Vietnam)
Construction
Company Limited
Vietnam Vietnam
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
(HK)
Construction
Decoration
Limited
Hong Kong
China
Hong Kong
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
(Lanka)
Construction
(Private) Limited
Sri Lanka Sri Lanka
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
Prefabricated
Construction
Technology
(Suzhou) Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
E-commerce 70.00%
Incorporation
with capital
contribution
Gold Mantis
Refined
Decoration &
Technology
(Suzhou) Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
Home Decoration
E-commerce
(Suzhou) Co.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
E-commerce 90.00%
Incorporation
with capital
contribution
Ltd.*2
Gold Mantis
Supply Chain
Management
(Suzhou) Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
E-commerce 100.00%
Incorporation
with capital
contribution
Suzhou Jijia
Materials Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis
North China
(Beijing)
Construction
Decoration
Engineering Co.
Ltd.
Beijing Beijing
Construction
decoration
100.00%
Incorporation
with capital
contribution
Gold Mantis Art
Co. Ltd.
Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Suzhou Jinpu No.
9 Cultural
Industrial
Development Co.
Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Operational
services
100.00%
Incorporation
with capital
contribution
Xi’an Hi-tech
Zone Jinchuang
Commercial
Operation
Management and
Development Co.
Ltd.Xi’an City
Shaanxi Province
China
Xi’an City
Shaanxi Province
China
PPP project
management
90.00%
Incorporation
with capital
contribution
Gold Mantis
Municipal
Engineering
Construction
(Guizhou) Co.Ltd.
Duyun City
Guizhou
Province China
Duyun City
Guizhou
Province China
Construction
decoration
100.00%
Business
combination not
involving entities
under common
control
Suzhou Industrial
Park Jindejin
Construction
Engineering Co.
Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Business
combination not
involving entities
under common
control
Sierra Gold
Mantis Joint
Venture (Private)
Limited
Sri Lanka Sri Lanka
Construction
decoration
50.00%
Incorporation
with capital
contribution
GMI
Construction
Corp.
The Phillipines The Phillipines
Construction
decoration
100.00%
Incorporation
with capital
contribution
M+ Design
Associates Pte.
Ltd.Singapore Singapore
Construction
design
63.00%
Incorporation
with capital
contribution
Gold Mantis East
China
Construction
Decoration Co.
Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Suzhou Huali
Jinshi
Construction
Decoration Co.
Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
60.00%
Incorporation
with capital
contribution
Shuicheng
Ruitong
Construction and
Development Co.
Ltd.Liupanshui City
Guizhou
Province China
Liupanshui City
Guizhou
Province China
PPP project
management
90.00%
Incorporation
with capital
contribution
Archi-Feeling
Design (SuZhou)
Co. Ltd.
Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
design
70.00%
Business
combination not
involving entities
under common
control
GMI International
Inc.The Phillipines The Phillipines
Construction
decoration
100.00%
Incorporation
with capital
contribution
Suzhou Miaoyu
Construction
Materials Co.Ltd.Suzhou City
Jiangsu Province
China
Suzhou City
Jiangsu Province
China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Jining Gold
Mantis
Construction
Engineering Co.
Jining City
Shandong
Province China
Jining City
Shandong
Province China
Construction
decoration
100.00%
Incorporation
with capital
contribution
Ltd.Hangzhou Gold
Mantis Landscape
Co. Ltd.
Hangzhou City
Zhejiang
Province China
Hangzhou City
Zhejiang
Province China
Landscaping 100.00%
Incorporation
with capital
contribution
Reason for holding different equity percentage and voting right percentage in a subsidiary:
Reason for holding half or below of voting rights but still controlling the investee and holding over half of voting rights but not
controlling the investee:
Basis for control over substantial structured entities included in the consolidated financial statements:
Basis for determining whether the Company was an agent or consignor:
Other information:
Note*1：HBA incorporated 24 subsidiaries.
*2：Home Decoration E-commerce incorproated 44 “Gold Mantis Home” subsidiaries.
Notes to the indirect interests: The Company indirectly held 100% interest in Meiruide
Materials through Meiruide; 100% interest in Qidong Curtain Wall through Gold Mantis Curtain
Wall; 100% interest in Gold Mantis Horticultural Datong Gold Mantis Jining Gold Mantis and
Hangzhou Gold Mantis respectively through Gold Mantis Landscape; an 86.62% interest in HBA
through Singapore Gold Mantis; 100% interest in Russia Gold Mantis JTL Fit Out Middle East
Saipan Gold Mantis Cambodia Gold Mantis International Development Gold Mantis (Vietnam)
Gold Mantis (HK) Gold Mantis (Lanka) GMI Construction GMI Construction Decoration and
Jining Gold Mantis Engineering respectively as well as a 63% interest in M+ through Gold
Mantis International; and a 90% interest in Home Decoration E-commerce 100% interest in
Refined Decoration & Technology and 100% interest in Gold Mantis Supply Chain through
Prefabricated Construction Technology.
(2) Principal Non-wholly-owned Subsidiaries
Unit: RMB
Subsidiary Minority interests
Net profit or loss
attributable to minority
interests in the current
period
Declared dividends for
minority interests in the
current period
Closing balance of
non-controlling interests
HBA 13.38% 16769841.20 63969033.00
Prefabricated
Construction Technology
30.00% -52544952.12 29682153.76
Total -35775110.92 93651186.76
Reason for minority shareholder holding different equity percentage and voting right percentage in a subsidiary:
Other information:
(3) Key Financial Information of Principal Non-wholly-owned Subsidiaries
Unit: RMB
Subsidia
ry
Closing balance Opening balance
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Current
assets
Non-curr
ent
assets
Total
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
HBA
788568
960.29
688548
45.32
857423
805.61
384812
502.40
331464
9.20
388127
151.60
872439
325.94
805749
24.92
953014
250.86
471423
691.20
189055
0.20
473314
241.40
Prefabric
ated
Construc
tion
Technolo
gy
220885
2750.36
213025
45.84
223015
5296.20
197308
2143.59
73663.5
6
197315
5807.15
206402
4385.12
153684
599.18
221770
8984.30
193193
9354.80
292240.
10
193223
1594.90
Unit: RMB
Subsidiary
Current period Last year
Operating
revenue
Net profit
Total
comprehensi
ve income
Net cash
generated
from/used in
operating
activities
Operating
revenue
Net profit
Total
comprehensi
ve income
Net cash
generated
from/used in
operating
activities
HBA
803827849.
60
88202658.2
3
88202658.2
3
86735560.0
0
988120444.
50
48311808.9
2
48311808.9
2
51400723.5
0
Prefabricated
Construction
Technology
280872261
7.48
-13401119.3
7
-13401119.3
7
-20135768.7
4
399921278
4.16
-99456739.2
0
-99456739.2
0
82094350.0
6
Other information:
(4) Major Restrictions with Respect to Use of the Group’s Assets and Repayment of the Group’s Liabilities
(5) Financial or Other Support Provided for Structured Entities Included in the Consolidated Financial
Statements
Other information:
2. Transactions Where Changes Occurred to the Company’s Interests in Subsidiaries but the Company still
Controlled the Subsidiaries
(1) Changes in Interests in Subsidiaries
(2) Effects of the Transactions on Non-controlling Interests and Equity Attributable to Owners of the
Company as the Parent
Unit: RMB
Other information:
3. Interests in Joint Ventures and Associates
(1) Principal Joint Ventures and Associates
Joint venture or
associate
Principal place of
business
Place of
registration
Nature of
business
The Company’s interest Accounting
treatment of
investment in the
joint venture or
associate
Direct Indirect
Reason for holding different equity percentage and voting right percentage in a joint venture or associate:
Reason for holding below 20% voting rights but having a significant influence or holding 20% or above voting rights but not having
a significant influence:
(2) Key Financial Information of Principal Joint Ventures
Unit: RMB
Closing balance/current period Opening balance/last year
Other information:
(3) Key Financial Information of Principal Associates
Unit: RMB
Closing balance/current period Opening balance/last year
Other information:
(4) Aggregate Financial Information of Insignificant Joint Ventures and Associates
Unit: RMB
Closing balance/current period Opening balance/last year
Joint ventures: -- --
Total amounts based on ownership
percentages:
-- --
Associates: -- --
Total carrying amount of investments 225124.06 22838423.66
Total amounts based on ownership
percentages:
-- --
--Net profit -9556696.62 -6162676.00
--Total comprehensive income -9556696.62 -6162676.00
Other information:
(5) Major Restriction on Joint Ventures or Associates’ Ability to Transfer Funds to the Company
(6) Excess Losses on Joint Ventures or Associates
Unit: RMB
Joint venture or associate
Cumulative previous losses
unrecognized
Losses unrecognized (or share
of net profit) in the current
period
Cumulative unrecognized losses
at the period-end
Other information:
(7) Unrecognized Commitments Associated with Investments in Joint Ventures
(8) Contingent Liabilities Associated with Investments in Joint Ventures or Associates
4. Principal Joint Operations
Joint operation
Principal place of
business
Place of registration Nature of business
The Company’s interest/share of profit/loss
Direct Indirect
Reason for holding different equity percentage/share of profit/loss and voting right percentage in a joint operation:
Basis for the classification as a joint operation when the joint operation was an independent entity:
Other information:
5. Interests in Structured Entities Not Included in the Consolidated Financial Statements
Notes:
6. Other
X Risks Associated with Financial Instruments
1. Qualitative Information
The Company's risks associated with financial instruments originate from various financial
assets and financial liabilities recognized by the Company in the course of operation including
credit risk liquidity risk and market risk.The Company's management is in charge of developing management objectives and policies
for the Company's risks associate with financial instruments. The management is in charge of
routine risk management through functional departments. The Company's internal audit department
is in charge of carrying out routine supervision over the implementation of risk management
policies and procedures of the Company as well as reporting relevant findings to the Audit
Committee of the Company in a timely manner.
The Company's overall objective for risk management is to develop risk management policies
to minimize risks associated with financial instruments without unduly affecting the
competitiveness and strain capacity of the Company.
2. Credit Risk
Credit risk refers to the financial loss that one party to a financial instrument will cause to the
other party by failing to fulfill its obligations. The Company's credit risk arises mainly from
monetary assets notes receivable accounts receivable other receivables and long-term receivables
and the credit risk of such financial assets is due to counterparty default with the maximum
exposure being equal to the carrying amount of these instruments.The Company's monetary assets are mainly deposited in commercial banks and other financial
institutions because the Company believes these commercial banks have high credit standing and
asset status and low credit risk.The Company developed relevant policies to control the credit risk exposure for notes
receivable accounts receivable other receivables and long-term receivables. The Company
assessed the credit qualifications of customers and set up corresponding credit periods based on the
financial condition of customers the possibility of obtaining guarantees from third parties credit
records and other factors such as the current market situation. The Company regularly monitors the
credit records of customers. For customers with bad credit records the Company adopted
corresponding methods such as written pressing for payment shortening credit period and
canceling credit period so as to ensure the Company's overall credit risk is controllable.
(1) Standards for judging significant increases in credit risk
On each balance sheet date the Company assessed whether the credit risk of relevant financial
instruments had increased significantly since the initial recognition. When determining whether
there were significant increases in credit risk since the initial recognition the Company considered
that reasonable and well-grounded information can be obtained without unnecessary additional cost
or effort including qualitative and quantitative analyses based on the Company's historical data
external credit risk ratings and forward-looking information. Based on individual financial
instruments or portfolios of financial instruments with similar credit risk characteristics the
Company determined the changes in default risk during the expected duration of financial
instruments by comparing the risk of default of financial instruments on the balance sheet date and
the risk of default on the initial recognition date.When one or more of the following qualitative and quantitative standards was triggered the
Company believed that the credit risk of financial instruments had increased significantly.
Quantitative standards mainly refer to that the probability of default for the remaining duration on
the reporting date increases by more than a certain percentage from the initial recognition.Qualitative standards refer to the major adverse changes in the operation or financial status of the
principal debtors and the list of early warning customers.
(2) Definition of assets with incurred credit impairment
To determine whether credit impairment occurred the Company adopted the definition
standard consistent with the internal credit risk management objectives for relevant financial
instruments with consideration also given to qualitative and quantitative indicators.The following factors are taken into account by the Company when assessing whether a debtor
suffers from credit impairment: the issuer or debtor has significant financial difficulties; the debtor
breaches the contract such as default or being overdue in the payment of interest or principal; for
economic or contractual reasons related to the debtor the creditor gives the debtor concessions that
he would not make under any other circumstance; the debtor is likely to go bankrupt or undergo
other financial reorganization; the financial difficulty of the issuer or debtor leads to the
disappearance of the active market for the financial asset; the purchase or generation of a financial
asset at a substantial discount that reflects the fact that a credit loss has occurred.The credit impairment of financial assets might be the result of a combination of events not
necessarily due to a single identifiable event.
(3) Parameters for measuring expected credit loss
According to whether there was a significant increase in credit risk or whether credit
impairment occurred the Company measured the provisions for the impairment of different assets
at the expected credit loss for 12 months or the entire duration. The key para meters for measuring
expected credit loss included default probability loss given default and exposure at default. The
Company established models for default probability loss given default and exposure at default after
considering the quantitative analysis of historical statistical data (such as counterparty rating
guarantee method collateral category and repayment method) and forward-looking information.The relevant definitions are as follows:
Default probability refers to the possibility that a debtor cannot fulfill its payment obligations
in the next 12 months or throughout the remaining duration.Loss given default refers to the Company's expectation for the extent of losses arising from
exposure to default risk. The loss given default varies depending on the counterparty type the
method and priority of recourse and different collaterals. The loss given default is the percentage of
risk exposure loss at default and is calculated on the basis of the next 12 months or the entire
duration.Exposure at default refers to the amount payable by the Company in the event of default in the
next 12 months or over the entire duration. Forward-looking information is involved in both the
assessment of significant increases in the credit risk of forward-looking information and the
calculation of expected credit loss. The Company identified the key economic indicators that
affected the credit risk and expected credit loss of various business types through historical data
analysis.The quantitative data on credit exposure arising from accounts receivable other receivables
and long-term receivables of the Company are detailed in Section XII. VII. (5) (8) and (16).
3. Liquidity Risk
Liquidity risk refers to the risk of capital shortage in an enterprise when fulfilling its
obligations to make settlements by delivering cash or other financial assets. The Company's policies
are designed to ensure there is adequate cash to repay debts as they fall due. Liquidity risk is under
the centralized control of the Company's Finance Department and the Audit Department is in
charge of supervision. The Finance Department monitors the cash balance and makes a rolling
forecast of cash flows in the next 12 months so as to ensure the Company has sufficient funds to
repay its debts under all reasonable predictions.
As of 31 December 2020 the maturities of the Company’s financial liabilities are as follows:
Item 31 December 2020
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 714363172.85 — — —
Notes payable 4871222687.68 — — —
Accounts payable 17046906908.50 — — —
Other payables 288908436.62 — — —
Current portion of
non-current liabilities
51083934.28 — — —
Long-term borrowings — 81000000.00 83000000.00 672918353.34
Total 22972485139.93 81000000.00 83000000.00 672918353.34
4. Market Risk
The market risk of a financial instrument refers to the risk of fluctuations in the fair value or
future cash flows of the financial instrument arising from changes in market prices including
exchange rate risk interest rate risk and other price risks.
(1) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments arising from changes in foreign exchange rates. The foreign exchange risk
faced by the Company is mainly from financial assets and financial liabilities denominated in
foreign currencies. For presentation reasons the amount of risk exposure was shown in Renminbi
the spot exchange rate on the balance sheet date was adopted for conversion and the translation
difference in foreign currency statements was not included. The exchange risk exposure data of
each foreign currency asset-liability item are detailed in Section XII. VII. (82).
(2) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments arising from changes in market interest rates. The interest rate risk faced by
the Company is from bank loans. As of 31 December 2020 the balance of the Company's bank
loans was RMB1402135800.00 most of which bore interest at a fixed rate so the Company's
interest risk was low.
(3) Other price risks
None.
XI Disclosure of Fair Value
1. The Closing Fair Value of Assets and Liabilities Measured at Fair Value
Unit: RMB
Item
Closing fair value
Level 1 fair value
measurement
Level 2 fair value
measurement
Level 3 fair value
measurement
Total
I. Continuous Fair Value
Measurement
-- -- -- --
(I) Held-for-trading
financial assets
2172086741.05 2172086741.05
1. Financial assets at fair
value through profit and
loss of the current period
2172086741.05 2172086741.05
(1) Debt instrument
investments
2172086741.05 2172086741.05
(II) Receivables financing 275822920.18 275822920.18
(III) Other non-current
financial assets
512022000.00 512022000.00
Total assets continuously
measured at fair value
2959931661.23 2959931661.23
II. Non-continuous Fair
Value Measurement
-- -- -- --
2. Basis for determining the market price of continuous and non-continuous Level 1 fair value
measurement items
3. Continuous and non-continuous Level 2 fair value measurement items valuation techniques used and
the qualitative and quantitative information of important parameters
4. Continuous and non-continuous Level 3 fair value measurement items valuation techniques used and
the qualitative and quantitative information of important parameters
5. Continuous and non-continuous Level 3 fair value measurement items information on the adjustment
between the opening and closing book value and sensitivity analysis of unobservable parameters
For wealth management products at the end of the reporting period the future cash flows were
predicted as the fair value according to the type of financial products and their yield rate.The carrying value of receivables financing was close to the fair value due to their short
remaining periods so the face amount served as the fair value.Other non-current financial assets were equity investments in unlisted enterprises that the
Company planned to hold for the long term and the initial investment cost served as the fair value.
6. If a continuous fair value measurement item was converted between levels for the current period the
reasons for such conversion and the policies for determining the conversion point
7. Valuation technique changes incurred in the current period and the reasons for such changes
8. The fair value of financial assets and financial liabilities not measured at fair value
9. Other Information
For financial instruments traded in an active market the Company determined their fair value
based on their quotations in the active market; for financial instruments not traded in an active
market the Company determined their fair value with valuation techniques. The valuation models
used were mainly those of comparable companies in the market. The input values for valuation
techniques primarily included risk-free interest rate benchmark interest rate exchange rate credit
point difference liquidity premium and discount for lack of liquidity.XII Related Parties and Related-party Transactions
1. Particulars about the Controlling Shareholder
Controlling
shareholder
Place of registration Nature of business Registered capital
Controlling
shareholder’s
shareholding
Controlling
shareholder’s voting
right percentage in
percentage in the
Company
the Company
Suzhou Gold Mantis
Enterprise (Group)
Co. Ltd.
Suzhou Industrial
Park
Industrial investment RMB215 million 24.33% 24.33%
Notes to the controlling shareholder:
Suzhou Gold Mantis Holding Co. Ltd. is the ultimate controller of the Company and Mr. Zhu Xingliang is the actual controller of
the Company.Other information:
2. Subsidiaries of the Company
See Note “IX Interests in Other Entities” in Part XII.
3. Joint Ventures and Associates of the Company
See the Notes to the Financial Statements for the Company’s principal joint ventures and associates.Other joint ventures or associates that were involved in related-party transactions with the Company in the current period or that
were involved in related-party transactions with the Company in prior periods with balances lasting into the current period:
Joint venture or associate Relationship with the Company
Delos Residential Solution (HK) Limited Gold Mantis International holds a 45.78% interest in it.
Macao Gold Mantis Construction Decoration Co. Limited Gold Mantis International holds a 45.00% interest in it.Zhejiang Tianyu Commercial Operation Management Co. Ltd.The Company and Refined Decoration & Technology held
35.00% and 15% interests respectively in it before October
2020.
Other information:
4. Other Related Parties
Other related parties Relationship with the Company
Suzhou LJT Intelligent Technology Co. Ltd. The Company’s subsidiary
Virtues Professional Training School of Suzhou Industrial Park The Company’s subsidiary
Suzhou Virtues Construction Professional Training School The Company’s subsidiary
Suzhou Gold Mantis Professional Training School The Company’s subsidiary
Suzhou Gold Mantis Investment Co. Ltd. The Company’s subsidiary
Suzhou Jinhu Property Development Co. Ltd. The Company’s subsidiary
Suzhou Gold Mantis 3D Software Co. Ltd. The Company’s subsidiary
Suzhou Huizhu Information Technology Co. Ltd. Subsidiary of Suzhou Gold Mantis 3D Software Co. Ltd.Suzhou BLM Technology Co. Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co. Ltd.Suzhou Gold Mantis Yihe Technology Co. Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co. Ltd.Suzhou Jinduoyun Information Technology Co. Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co. Ltd.Jiangsu Dongyi Software Technology Co. Ltd. Subsidiary of Suzhou Gold Mantis Yihe Technology Co. Ltd.Suzhou Jinnuo Commercial Factoring Co. Ltd. Subsidiary of Suzhou Nuojin Investment Co. Ltd.Suzhou Nuojin Finance Lease Co. Ltd. Subsidiary of Suzhou Nuojin Investment Co. Ltd.Suzhou Gold Mantis Culture Development Co. Ltd. Minority-owned subsidiary of the controlling shareholder
Delos (Suzhou) Well Technology Ltd. Subsidiary of Delos Residential Solutions (HK) Limited
Suzhou Gold Mantis Charity Foundation
The Company’s senior management being director of the
non-corporate organization
Suzhou Gold Gain Investment Co. Ltd. Under control of the same actual controller
Suzhou Jinbai Hotel Management Co. Ltd. Subsidiary of Suzhou Jinhu Property Development Co. Ltd.Other information:
5. Related-party Transactions
(1) Related-party Transactions Involving Purchase and Sale of Goods as well as Receipt and Rendering of
Services
Purchases of goods/receipt of services:
Unit: RMB
Related party
Contents of
transaction
Amount in the
current period
Approved transaction
line
Over the transaction
line or not
Amount in last year
Suzhou Gold
Mantis 3D Software
Co. Ltd.
Software and
technical services
1381383.97 1381383.97 Not 3378233.02
Suzhou Huizhu
Information
Technology Co.Ltd.Technical services 274801.88 274801.88 Not 1699921.03
Suzhou Gold
Mantis Investment
Co. Ltd.
Consulting
services
288226.17 288226.17 Not 471698.11
Delos (Suzhou)
Well Technology
Ltd.Materials 1621386.16 1621386.16 Not 983599.75
Suzhou BLM
Technology Co.Ltd.
Equipment and
materials
929356.41 929356.41 Not 113534.85
Suzhou LJT Design charges 7547969.20 7547969.20 Not -36603.66
Intelligent
Technology Co.Ltd.*
and materials
Total 12043123.79 12043123.79 Not 6610383.10
Sale of goods/rendering of services:
Unit: RMB
Related party Contents of transaction Amount in the current period Amount in last year
Suzhou Jinhu Property
Development Co. Ltd.
Decoration curtain wall
engineering and design
52969607.31 142704259.15
Suzhou Jinbai Hotel
Management Co. Ltd.
Decoration engineering 15440691.47 142338041.03
Zhejiang Tianyu Commercial
Operation Management Co.Ltd.
Decoration engineering and
design
1125479.28 10609411.15
Suzhou LJT Intelligent
Technology Co. Ltd.
Decoration engineering and
equipment
-482110.08 2489321.77
Delos (Suzhou) Well
Technology Ltd.
Decoration engineering 110145.63
Suzhou Gold Mantis Culture
Development Co. Ltd.
Landscaping and property
services
446519.56
Total 69610333.17 298141033.10
Notes to related-party transactions involving purchase and sale of goods as well as receipt and rendering of services:
Note*：The transaction amount was negative primarily due to adjustments in the audit and
settlement.
(2) Management Entrustment and Contracting between the Company and Related Parties
The Company as the trustee of management/contractor:
Unit: RMB
Trustor/contractor
Trustee/contracte
e
Type of asset Start date End date
Basis for income
determination
Income
recognized in the
current period
Notes:
The Company as the trustor of management/contractee:
Unit: RMB
Trustor/contractor
Trustee/contracte
e
Type of asset Start date End date
Basis for the
determination of
charges
Charges
recognized in the
current period
Notes:
(3) Leases between the Company and Related Parties
The Company as the lessor:
Unit: RMB
Lessee Type of the leased asset
Rental income recognized in the
current period
Rental income recognized last
year
Suzhou Gold Mantis Enterprise
(Group) Co. Ltd.
Building space 189000.00 189000.00
Suzhou Gold Mantis
Investment Co. Ltd.
Building space 42000.00 42000.00
Suzhou BLM Technology Co.Ltd.
Building space 10500.00 10500.00
Suzhou Jinhu Property
Development Co. Ltd.
Building space 42000.00 42000.00
Suzhou Jinduoyun Information
Technology Co. Ltd.
Building space 10500.00 10500.00
Jiangsu Dongyi Software
Technology Co. Ltd.
Building space 10500.00 10500.00
Suzhou Gold Mantis 3D
Software Co. Ltd.
Building space 84000.00 84000.00
Suzhou Huizhu Information
Technology Co. Ltd.
Building space 84000.00 84000.00
Suzhou LJT Intelligent
Technology Co. Ltd.
Building space 1078600.00 1078600.00
Suzhou Gold Mantis Yihe
Technology Co. Ltd.
Building space 210000.00 210000.00
Suzhou Jinnuo Commercial
Factoring Co. Ltd.
Building space 12600.00 12600.00
Suzhou Gold Mantis Charity
Foundation
Building space 10500.00 10500.00
Suzhou Nuojin Investment Co.Ltd.
Building space 21000.00 21000.00
Gold Gain Investment Limited Building space 3800.00 3800.00
Suzhou Jinbai Hotel
Management Co. Ltd.
Building space 2800.00 7000.00
Delos (Suzhou) Well
Technology Ltd.
Building space 12600.00 25200.00
Suzhou Gold Mantis Culture
Development Co. Ltd.
Building space 1115300.00 1216700.00
The Company as the lessee:
Unit: RMB
Lessor Type of the leased asset
Rental expense recognized in
the current period
Rental expense recognized last
year
Notes:
(4) Guarantees Provided between the Company and Related Parties
The Company as the guarantee provider:
Unit: RMB
Guaranteed party Amount of guarantee Start date End date Liability executed or not
Refined Decoration &
Technology
40500000.00 17 May 2019 16 May 2022 Not
Refined Decoration &
Technology
15000000.00 1 June 2020 31 May 2021 Not
Refined Decoration &
Technology
300000000.00 26 October 2020 26 October 2021 Not
Refined Decoration &
Technology
80000000.00 9 December 2020 9 December 2021 Not
Refined Decoration &
Technology
100000000.00 14 December 2020 13 December 2021 Not
Gold Mantis Landscape 50000000.00 18 June 2019 17 June 2020 Not
Gold Mantis Landscape 150000000.00 4 July 2019 4 July 2020 Not
Gold Mantis Landscape 60000000.00 22 April 2020 21 April 2021 Not
Gold Mantis Landscape 80000000.00 23 September 2020 23 September 2021 Not
Gold Mantis Curtain
Wall
200000000.00 31 May 2018 30 May 2019 Not
Gold Mantis Curtain
Wall
372000000.00 15 August 2019 14 August 2020 Not
Gold Mantis Curtain
Wall
100000000.00 11 December 2019 11 December 2020 Not
Gold Mantis Curtain
Wall
100000000.00 18 May 2020 18 May 2021 Not
Gold Mantis Curtain
Wall
200000000.00 5 June 2020 13 May 2021 Not
Gold Mantis Curtain 50000000.00 18 June 2020 18 June 2021 Not
Wall
Gold Mantis Curtain
Wall
372000000.00 24 August 2020 23 August 2021 Not
Gold Mantis Curtain
Wall
60000000.00 4 November 2020 25 August 2021 Not
Gold Mantis Curtain
Wall
80000000.00 23 September 2020 23 September 2021 Not
Gold Mantis Curtain
Wall
170000000.00 1 December 2020 1 December 2021 Not
Gold Mantis Curtain
Wall
150000000.00 10 December 2020 9 December 2021 Not
Meiruide 250000000.00 26 October 2018 25 November 2019 Not
Meiruide 200000000.00 13 May 2019 15 April 2020 Not
Meiruide 100000000.00 28 May 2019 27 May 2020 Not
Meiruide 100000000.00 8 January 2020 8 January 2021 Not
Meiruide 100000000.00 17 March 2020 17 March 2021 Not
Meiruide 200000000.00 18 May 2020 18 May 2021 Not
Meiruide 200000000.00 5 June 2020 13 May 2021 Not
Meiruide 100000000.00 11 June 2020 11 June 2021 Not
Meiruide 250000000.00 10 August 2020 9 August 2021 Not
Meiruide 100000000.00 23 September 2020 23 September 2021 Not
Meiruide 200000000.00 24 September 2020 24 September 2021 Not
Meiruide 400000000.00 26 October 2020 26 October 2021 Not
Gold Mantis Supply
Chain
50000000.00 27 August 2019 27 August 2020 Not
Gold Mantis Supply
Chain
100000000.00 24 September 2019 24 September 2020 Not
Gold Mantis Supply
Chain
30000000.00 8 April 2020 7 April 2021 Not
Gold Mantis Supply
Chain
60000000.00 5 June 2020 13 May 2021 Not
Gold Mantis Supply
Chain
50000000.00 26 May 2020 25 May 2021 Not
Jijia Materials 60000000.00 5 June 2020 13 May 2021 Not
Gold Mantis East China 10000000.00 3 July 2020 3 July 2021 Not
Singapore Gold Mantis 82669200.00 28 August 2020 28 August 2021 Not
Singapore Gold Mantis 122617800.00 26 September 2020 25 September 2021 Not
Not
Not
The Company as the guaranteed party:
Unit: RMB
Guarantee provider Amount of guarantee Start date End date Liability executed or not
Suzhou Gold Mantis
Enterprise (Group) Co.
Ltd.
345000000.00 20 June 2019 19 June 2033 Not
Notes to guarantees provided between the Company and related parties :
On 20 June 2019 the Company's subsidiary Shuicheng Ruitong obtained a long-term pledged
loan with a term of 168 months from Shuicheng County Sub-branch of Agricultural Development
Bank of China. This loan was pledged with the income from feasibility gap subsidies receivable by
Shuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement of
Rural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold Mantis
Enterprise (Group) Co. Ltd.
(5) Loans between the Company and Related Parties
Unit: RMB
Related party Amount of loan Start date End date Note
Loans from related parties
Loans to related parties
(6) Asset Transfers and Debt Restructuring Involving Related Parties
Unit: RMB
Related party Contents of transaction Current period Last year
(7) Remuneration of Key Management
Unit: RMB
Item Current period Last year
Accrued remuneration of key management 9851500.00 8622600.00
(8) Other Related-party Transactions
① In 2020 the Company as well as its subsidiaries including Meiruide Gold Mantis Curtain
Wall Gold Mantis Landscape Refined Decoration & Technology Gold Mantis Art Jindejin
Construction and Huali Jinshi paid Suzhou Virtues Construction Professional Training School
training fees of RMB1707800 in total; the Company as well as its subsidiaries including Meiruide
Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School of
Suzhou Industrial Park training fees of RMB188800 in total.② In December 2020 the Company donated RMB3 million to Suzhou Gold Mantis Charity
Foundation.
6. Amounts Receivable from or Payable to Related Parties
(1) Amounts Receivable from Related Parties
Unit: RMB
Item Related party
Closing balance Opening balance
Gross amount
Allowances for
doubtful accounts
Gross amount
Allowances for
doubtful accounts
Accounts receivable
Suzhou Jinbai Hotel
Management Co.Ltd.
38096160.80 1904808.04 49816293.87 2490814.69
Contract assets
Suzhou Jinbai Hotel
Management Co.Ltd.
4792905.47 239645.27
Accounts receivable
Suzhou Jinhu
Property
Development Co.
Ltd.
32390086.28 1619504.31 17847500.40 892375.02
Contract assets
Suzhou Jinhu
Property
Development Co.
Ltd.
23633878.71 1181693.94
Accounts receivable
Zhejiang Tianyu
Commercial
Operation
Management Co.Ltd.
6891246.53 344562.33 6790500.00 339525.00
Contract assets
Zhejiang Tianyu
Commercial
Operation
Management Co.Ltd.
576025.87 28801.29
Accounts receivable
Suzhou LJT
Intelligent
11155.00 557.75 1182100.00 59105.00
Technology Co. Ltd.
Contract assets
Suzhou LJT
Intelligent
Technology Co. Ltd.
59445.00 2972.25
Accounts receivable
Delos (Suzhou) Well
Technology Ltd.
31702.05 9510.62 241739.00 24173.90
Accounts receivable
Suzhou Gold Mantis
Culture
Development Co.
Ltd.
110005.79 5500.29 983833.91 49191.70
Contract assets
Suzhou Gold Mantis
Culture
Development Co.
Ltd.
901898.18 45094.91
(2) Amounts Payable to Related Parties
Unit: RMB
Item Related party Closing balance Opening balance
Accounts payable
Suzhou Huizhu Information
Technology Co. Ltd.
311660.00 465770.00
Accounts payable
Suzhou BLM Technology Co.Ltd.
881695.91 259507.25
Accounts payable
Delos (Suzhou) Well
Technology Ltd.
216686.60 210488.43
Accounts payable
Suzhou Gold Mantis 3D
Software Co. Ltd.
180000.00 200000.00
Accounts payable
Suzhou LJT Intelligent
Technology Co. Ltd.
7996178.00 14178.00
Other payables
Delos (Suzhou) Well
Technology Ltd.
23040.00
Other payables
Suzhou Gold Mantis Culture
Development Co. Ltd.
20000.00
7. Commitments Involving Related Parties
8. Other
XIII Share-based Payments
1. The Overall Situation of Share-Based Payments
√ Applicable □ Not applicable
Unit: RMB
Total amount of various equity instruments granted by the Company
during the current period
0.00
Total amount of various equity instruments exercised by the Company
during the current period
0.00
Total amount of various equity instruments invalidated during the current
period of the Company
1050000.00
The scope of exercise prices of other equity instruments issued by the
Company at the end of the reporting period and the remaining term of
contracts
RMB3.99 per share the remaining term of contracts
was 23 months; RMB4.01 per share the remaining term
of contracts was 36 months;
Other information:
2. Equity-settled Share-based Payments
√ Applicable □ Not applicable
Unit: RMB
Methods for determining the fair value of equity instruments on the
grant date
First grant: *
Grant of the reserved portion: The closing price of the
Company's stock on the grant date
Basis for determining the number of feasible right equity
instruments
To be determined by the number of actually exercised rights
Equity-settled share-based payments were included in the
cumulative amount of capital reserves
86866866.67
Total expenses recognized in equity-settled share-based payments
for the current period
3579166.67
Other information:
Note*: For incentive objects who are not Board Members or officers of the Company the fair
value of restricted shares is equal to the closing price on the grant date; for the fair value of
restricted shares granted to Board Members and officers the Company uses the Black-Scholes
model (B-S model) as the pricing model to determine the fair value of the restricted shares after
deducting the cost of restrictive factors.In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme
(Draft) and Its Summary deliberated and approved at the 1st Extraordinary General Meeting of the
Company of 2018 and the resolution of the 13th Extraordinary Meeting of the 5th Board of
Directors the Company granted a total of 33.10 million restricted shares to 32 restricted share
incentive objects including Wang Hanlin Cao Liming and Shi Guoping and the issue price was
RMB3.99 per share. The share incentive scheme was divided into three phases and the restricted
shares were unlocked proportionally. When confirming the share-based payment expenses
accounting treatment was performed by regarding it as three independent share-based payment
schemes.In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme
(Draft) and Its Summary deliberated and approved at the Company's 1st Extraordinary General
Meeting of 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board of Directors
of 2019 the Company granted 8.00 million reserved restricted shares to 14 restricted share
incentive objects including Wang Zhenlong and Gao Hongqiang and the issue price was RMB4.01
per share. The share incentive scheme was divided into three phases and the restricted shares were
unlocked proportionally. When confirming the share-based payment expenses accounting treatment
was performed by regarding it as three independent share-based payment schemes.The phasing and unlocking conditions of the share incentive scheme are as follows:
Lifting restriction
period
Lifting restriction time Performance appraisal objectives Proportion of the
number of restricted
shares lifted in
restricted shares
granted for the first
time
1st lifting
restriction period
From the first trading day 12
months after the completion date
of the first grant of partial
restricted shares to the day of the
last trading day within 24 months
after the completion date of the
first grant of partial restricted
shares
The Company should meet one of
the following two conditions:
1. Based on the operating revenue in
2018 the growth rate of the
operating revenue in 2019 shall be
not less than 20%;
2. Based on the net profit in 2018
the growth rate of the net profit in
2019 shall be not less than 15%.
30%
2nd lifting
restriction period
From the first trading day 24
months after the completion date
of the first grant of partial
restricted shares to the day of the
last trading day within 36 months
after the completion date of the
first grant of partial restricted
shares
The Company should meet one of
the following two conditions:
1. Based on the operating revenue in
2018 the growth rate of the
operating revenue in 2019 shall be
not less than 40%;
2. Based on the net profit in 2018
the growth rate of the net profit in
2019 shall be not less than 30%.
30%
3rd lifting
restriction period
From the first trading day 36
months after the completion date
of the first grant of partial
restricted shares to the day of the
last trading day within 48 months
after the completion date of the
first grant of partial restricted
shares
The Company should meet one of
the following two conditions:
1. Based on the operating revenue in
2018 the growth rate of the
operating revenue in 2019 shall be
not less than 60%;
2. Based on the net profit in 2018
the growth rate of the net profit in
2019 shall be not less than 45%.
40%
Based on the grant date of restricted shares and the best estimate of restricted shares at the end
of the year the Company's exercise expenses in relevant years were estimated as follows:
(Unit: RMB'0000)
Item 2020 2021 2022 Total
Expenses of the first grant of share
incentive
-744.08 1571.25 - 827.17
Expenses of the grant of reserved share
incentive
1102.00 371.2 340.27 1813.47
Total 357.92 1942.45 340.27 2640.64
In May 2020 in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on Repurchase and Cancellation of Some Restricted Shares deliberated and approved at the
5th Meeting of the 6th Board of Directors of 2020 Yang Peng and Xie Jinjun the original incentive
objects had left the Company and did not meet the incentive conditions so the Company repurchased
and canceled 1050000.00 restricted shares granted to them but not yet unlocked according to the
relevant provisions of the Company's share incentive scheme.In May 2020 in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting Restriction
Period for the First Grant Portion of the 2018 Restricted Share Incentive Scheme the number of
restricted shares that can be applied to unlock this time was 9615000.00 and the listing and trading
date of the restricted shares during the current period was 9 June 2020.
3. Cash-settled Share-based Payments
□ Applicable √ Not applicable
4. Modification and Termination of Share-based Payments
5. Other Information
XIV Commitments and Contingencies
1. Significant Commitments
Significant valid commitments on the balance sheet date:
(1) Guarantee Letters Issued as of 31 December 2020
Type Amount
Performance bonds 1017697981.45
Advance payment guarantees 400105438.93
Bid security forms 31375000.00
Quality guarantees 9430618.17
Guarantees for payment of salaries 10972882.92
Total 1469581921.47
(2) As of 31 December 2020 save as disclosed above there were no significant commitments
that require to be disclosed.
2. Contingencies
(1) Significant Valid Contingencies on the Balance Sheet Date
2. Contingencies
(1) Contingent Liabilities Arising from the Provision of Debt Guarantees for Other Entities and the
Financial Effects
See XII (5) in Part XII for guarantees between the Company and its subsidiaries as of 31
December 2020.
(2) As of 31 December 2020 save as disclosed above there were no significant contingencies that
require to be disclosed.
(2) The Company shall make it clear if it has no significant contingencies that require to be disclosed.
There were no significant contingencies that require to be disclosed.
3. Other Information
XV Events after the Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
Item Contents
Effects on the financial
condition and operating results
Reason for inability to estimate
the affected amount
2. Profit Distribution
Unit: RMB
Profit or dividends to be distributed 536671737.80
Approved and declared profit or dividends to be distributed 536671737.80
3. Return of Sales
4. Other Events after the Balance Sheet Date
A. Incorporation Acquisition and De-registration of Subsidiaries after the Balance Sheet
Date
In January 2021 subsidiary Home Decoration E-commerce incorporated majority-owned
subsidiary Suzhou Tangbao Technical Service Co. Ltd.
During the period from January to March 2021 subsidiary Home Decoration E-commerce
de-registered Quzhou Gold Mantis Home E-commerce Co. Ltd. and Lishui Gold Mantis Home
E-commerce Co. Ltd.
In January 2021 subsidiary Gold Mantis International de-registered Jining Gold Mantis
Construction Engineering Co. Ltd.
In January 2021 the Company acquired 100% interest in Home Decoration E-commerce
held by Prefabricated Construction Technology a majority-owned subsidiary of the Company.Therefore Home Decoration E-commerce has become a wholly-owned subsidiary of the
Company.
B. Repurchase of Shares
On 31 March 2021 the Proposal on the Share Repurchase Scheme of the Company was
deliberated and approved at the 3rd Extraordinary Meeting of the 6th Board of Directors of the
Company which planned to repurchase the shares of the Company with its own funds in the form
of call auction and use such repurchased shares to implement the share incentive or Employee Stock
Ownership Plan. The total amount of this repurchase was not more than RMB300.00 million
(inclusive) and not less than RMB150.00 million (inclusive). The price of the repurchased shares
was not more than RMB15 per share. If calculated at the maximum amount of repurchase funds and
the ceiling on the share repurchase price it was estimated that the number of shares to be
repurchased was approximately 20000000 accounting for about 0.75% of the Company's current
share capital. If calculated at the minimum amount of repurchase funds and the ceiling on the share
repurchase price it was estimated that the number of shares to be repurchased was approximately
10000000 accounting for about 0.37% of the Company's current share capital. The specific
number of repurchased shares shall be subject to the actual number of shares repurchased at the
expiration of the repurchase period.
C. Other Events after the Balance Sheet Date
On 15 January 2021 the Proposal on the Achievement of Lifting the Restriction Conditions in
the First Lifting Restriction Period for the First Grant Portion of the 2018 Restricted Share Incentive
Scheme was deliberated and approved at the 2nd Extraordinary Meeting of the 6th Board of Directors
and the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that the lifting
restriction conditions for the restricted shares reserved under the Company's 2018 restricted share
incentive scheme in the first lifting restriction period were achieved. It was therefore agreed that the
Company would handle matters related to lifting restrictions for eligible incentive objects in
accordance with the relevant provisions of the incentive scheme after the expiration of the first
restriction period of reserved restricted shares. 14 incentive objects met the conditions for lifting
restrictions this time 2.40 million restricted shares were lifted this time accounting for 0.09% of the
Company's current share capital and the listing and trading date of the restricted shares lifted this
time was 27 January 2021.
As of 28 April 2021 save as disclosed above there are no other events after the balance sheet
date that require to be disclosed.XVI Other Significant Events
1. Correction of Prior Accounting Errors
(1) Retrospective Restatement Method
Unit: RMB
Accounting error corrected Procedure of treatment
Affected statement items of
comparative periods
Cumulative effects
(2) Prospective Application Method
Accounting error corrected Procedure of approval
Reason for adopting the prospective
application method
2. Debt Restructuring
3. Asset Swaps
(1) Swaps of Non-monetary Assets
(2) Swaps of Other Assets
4. Annuity Plans
5. Discontinued Operations
Unit: RMB
Item Revenue Expense Gross profit
Income tax
expense
Net profit
Net profit of
discontinued
operations
attributable to
owners of the
Company as the
parent
Other information:
6. Segment Information
(1) Basis for the Determination of Reporting Segments and Accounting Policies
Factors taken into account in the determination of reporting segments:
The Company determined reporting segments based on product segments while taking into
account the internal organziational structure management requirements the internal reporting
system etc.
(2) Financial Information of Reporting Segments
Unit: RMB
Item
Construction
decoration
Manufacturing Others
Offset between
segments
Total
Revenue of core
businesses
30117163022.25 954085964.93 96722042.10 31167971029.28
Costs of core
businesses
25135776779.73 877506030.76 27949300.30 26041232110.79
(3) Reasons shall be given if the Company has no reporting segments or is unable to disclose the total assets
and liabilities of the reporting segments.
(4) Other Information
(2) Core Businesses (by Product Category)
Product category 2020 2019
Revenue of core
businesses
Costs of core
businesses
Revenue of core
businesses
Costs of core
businesses
Decoration 27939943817.80 23605931194.94 27172714036.71 22528609783.38
Design 1501558913.30 928786610.87 1823521929.28 1055748002.20
Curtain wall 1637205437.26 1479454103.65 1726158637.26 1547342368.64
Others 89262860.92 27060201.33 70528086.58 25421317.32
Total 31167971029.28 26041232110.79 30792922689.83 25157121471.54
7. Other Significant Transactions and Matters that may Affect Decision-Making of Investors
8. Other Information
As of 31 December 2020 save as disclosed above there were no other significant events that
require to be disclosed.XVII Notes to Key Items of the Financial Statement of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
Type
Closing balance Opening balance
Gross amount
Allowance for
doubtful account
Carrying
amount
Gross amount
Allowance for
doubtful account
Carrying
amount
Amount
Percenta
ge
Amount
Allowanc
e
percentag
e
Amount
Percentag
e
Amount
Allowanc
e
percentag
e
Accounts receivable
for which the
allowances for
doubtful accounts are
established on the
individual basis
127588
535.17
1.17%
123375
780.37
96.70%
4212754
.80
5634355
9.00
0.58%
5213080
4.20
92.52%
4212754.8
0
Including:
Accounts receivable
for which the
allowances for
doubtful accounts are
established on the
grouping basis
108082
25625.5
5
98.83%
123438
3782.06
11.42%
9573841
843.49
9680400
290.59
4.20%
1135176
365.99
11.73%
85452239
24.60
Including:
Group of related
parties
148332
023.08
1.36%
1483320
23.08
2114776
94.16
2.17%
21147769
4.16
Group of non-related
parties
106598
93602.4
7
97.47%
123438
3782.06
11.58%
9425509
820.41
9468922
596.43
97.25%
1135176
365.99
83337462
30.44
Total
109358
14160.7
2
100.00%
135775
9562.43
12.42%
9578054
598.29
9736743
849.59
100.00%
1187307
170.19
12.19%
85494366
79.40
Allowances for doubtful accounts established on the individual basis: RMB123375780.37
Unit: RMB
Entity
Closing balance
Gross amount
Allowance for doubtful
account
Allowance percentage Reason for allowance
Kangde Composites Co.Ltd.
24448081.36 24448081.36 100.00% Expectedly irrecoverable
Chongqing Forebase
Industrial Investment
(Holdings) Co. Ltd.
21846558.74 21846558.74 100.00% Expectedly irrecoverable
Xiamen Shiqiao
Investment Management
Co. Ltd.
21063774.00 16851019.20 80.00% Based on expected loss
Jiangsu Shenghe Tourism
Development Co. Ltd.
15988000.49 15988000.49 100.00% Expectedly irrecoverable
Chenzhou Jinhuang
Hotel Management Co.Ltd.
15778879.42 15778879.42 100.00% Expectedly irrecoverable
Jiangsu Zhonghao
Holding Group Co. Ltd.
10580950.57 10580950.57 100.00% Expectedly irrecoverable
Beijing Hanergy PV
Investment Co. Ltd.
10286740.59 10286740.59 100.00% Expectedly irrecoverable
Zhengzhou Hemei
Women and Children's
Hospital Co. Ltd.
7595550.00 7595550.00 100.00% Expectedly irrecoverable
96.70% Expectedly irrecoverable
Total 127588535.17 123375780.37 -- --
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
Entity
Closing balance
Gross amount
Allowance for doubtful
account
Allowance percentage Reason for allowance
Allowances for doubtful accounts established on the grouping basis: RMB0
Unit: RMB
Entity
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Xi’an Hi-tech Zone Jinchuang
Commercial Operation
Management and Development
Co. Ltd.
73936930.26
Suzhou Jijia Materials Co. Ltd. 42345975.63
Suzhou Meiruide Construction
Decoration Co. Ltd.
11123010.10
GMI Construction Corp. 8024359.64
Gold Mantis (Vietnam)
Construction Company Limited
6781889.75
Gold Mantis (International)
Construction Decoration
Limited
4486997.11
Gold Mantis Prefabricated
Construction Technology
(Suzhou) Co. Ltd.
1279152.47
Suzhou Gold Mantis Landscape
Co. Ltd.
327308.12
Archi-Feeling Design (SuZhou)
Co. Ltd.
26400.00
Total 148332023.08 --
Grouping basis:
No allowances for doubtful accounts were established for entities within the consolidation scope.
Allowances for doubtful accounts established on the grouping basis: RMB1234383782.06
Unit: RMB
Item
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Within 1 year 8369093195.20 418454659.76 5.00%
1-2 years 1091170333.38 109117033.34 10.00%
2-3 years 465539333.26 139661799.98 30.00%
3-4 years 266935776.65 133467888.33 50.00%
4-5 years 167362816.66 133890253.33 80.00%
Over 5 years 299792147.32 299792147.32 100.00%
Total 10659893602.47 1234383782.06 --
Grouping basis:
Accounts receivable as at 31 December 2020 for which allowances were established based on
the group of non-related parties
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
Item
Closing balance
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 8472482128.36
1-2 years 1126998559.61
2-3 years 558768442.94
Over 3 years 777565029.81
3-4 years 310410065.83
4-5 years 167362816.66
Over 5 years 299792147.32
Total 10935814160.72
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Type Opening balance
Change in the current period
Closing balance
Established Reversed Written off Others
Allowances for
doubtful accounts
established on the
individual basis
52130804.20 81213348.62 9968372.45 123375780.37
Allowances for
doubtful accounts
established on the
grouping basis
1135176365.99 108254809.07 9047393.00 1234383782.06
Total 1187307170.19 189468157.69 19015765.45 1357759562.43
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Accounts receivable written off 19015765.45
Significant accounts receivable written off:
Unit: RMB
Entity
Nature of account
receivable
Amount written off Reason for write-off
Write-off procedure
executed
Arising from a
related-party
transaction or not
Zhejiang Zhongqing
Real Estate Co. Ltd.
Engineering
payment
9968372.45
Expectedly
irrecoverable
Approval procedure
for write-offs
Not
Liaoning Bihu Hot
Spring Club
Management Co. Ltd.
Engineering
payment
7047393.00
Expectedly
irrecoverable
Approval procedure
for write-offs
Not
Foshan International
Furniture EXPO
MALL
Engineering
payment
2000000.00
Expectedly
irrecoverable
Approval procedure
for write-offs
Not
Total -- 19015765.45 -- -- --
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
Entity
Closing balance of accounts
receivable
As a % of the closing balance of
total accounts receivable
Closing balance of allowances
for doubtful accounts
Entity 1 462637728.73 4.23% 23131886.44
Entity 2 141511109.64 1.29% 7075555.48
Entity 3 135741214.70 1.24% 6787060.74
Entity 4 120928130.57 1.11% 6046406.53
Entity 5 119712118.87 1.10% 5985605.94
Total 980530302.51 8.97%
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
Way of transfer of financial assets Amount of accounts receivable
derecognized
Gain or loss on derecognition
Factoring of accounts receivable 473441103.31 -23282185.98
In 2020 the Company as the parent transferred without recourse accounts receivable of
RMB473441103.31 to financial institutions and the relevant loss stood at RMB23282185.98.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon Transfer
Other information:
2. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 40000000.00 40000000.00
Other receivables 295745131.01 329029544.53
Total 335745131.01 369029544.53
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
Item Closing balance Opening balance
2) Substantial Interest Overdue
Borrower Closing balance Overdue time Reason
Any impairment and
basis for impairment
judgment
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
Item (or investee) Closing balance Opening balance
Suzhou Gold Mantis Landscape Co. Ltd. 40000000.00 40000000.00
Total 40000000.00 40000000.00
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
Item (or investee) Closing balance Aging
Reason for being
outstanding
Any impairment and
basis for impairment
judgment
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
Nature of other receivable Closing balance Opening balance
Internal current accounts 194097292.19 227041086.85
Security deposits 154539803.28 153003005.75
Others 11481548.41 15157554.75
Less: allowances for doubtful accounts -64373512.87 -66172102.82
Total 295745131.01 329029544.53
2) Allowances for Doubtful Other Receivables
Unit: RMB
Allowances
Stage 1 Stage 2 Stage 3
Total 12-month expected
credit loss
Lifetime expected credit
loss (without credit
impairment)
Lifetime expected credit
loss (with credit
impairment)
Balance as at 1 January
2020
66172102.82 66172102.82
Balance as at 1 January
2020 in the current
period
—— —— —— ——
Established in the current
period
-1648589.95 -1648589.95
Written off in the current
period
150000.00 150000.00
Balance as at 31
December 2020
64373512.87 64373512.87
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Closing balance
Within 1 year (inclusive) 257704366.85
1-2 years 31799170.69
2-3 years 11146588.48
Over 3 years 59468517.86
3-4 years 7561596.90
4-5 years 3888002.92
Over 5 years 48018918.04
Total 360118643.88
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current Period
Allowances for doubtful other receivables in the current period:
Unit: RMB
Type
Opening
balance
Change in the current period
Closing balance
Established Reversed Written off Others
Established on the
grouping basis
66172102.82 -1648589.95 150000.00 64373512.87
Total 66172102.82 -1648589.95 150000.00 64373512.87
Significant reversed allowances in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
4) Other Receivables Written off in the Current Period
Unit: RMB
Item Amount written off
Other receivables written off 150000.00
Significant other receivables written off:
Unit: RMB
Entity
Nature of other
receivable
Amount written off Reason for write-off
Write-off procedure
executed
Arising from a
related-party
transaction or not
Notes:
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
Entity
Nature of other
receivable
Closing balance Aging
As a % of the closing
balance of total other
receivables
Closing balance of
allowances for
doubtful other
receivables
Entity 1
Internal current
accounts
160759691.66 Within 1 year 44.64%
Entity 2
Security deposit for
engineering project
39484676.77 Over 5 years 10.96% 39484676.77
Entity 3
Internal current
accounts
21594590.98 Within 1 year 6.00%
Entity 4
Internal current
accounts
11722739.77 2-4 years 3.25%
Entity 5
Security deposit for
execution
10573100.00 0-2 years 2.94% 1050859.43
Total -- 244134799.18 -- 67.79% 40535536.20
6) Other Receivables Associated with Government Grants
Unit: RMB
Entity
Title of government
grant
Closing balance Closing aging
Expected time of receipt
and amount to be
received as well as
judgment basis
7) Other Receivables Derecognized due to Transfer of Financial Assets
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon Transfer
Other information:
3. Long-term Equity Investments
Unit: RMB
Item
Closing balance Opening balance
Gross amount
Impairment
allowances
Carrying amount Gross amount
Impairment
allowances
Carrying amount
Investments in
subsidiaries
2504132432.26 2504132432.26 2438659209.93 2438659209.93
Investments in
joint ventures and
associates
11530042.59 11530042.59
Total 2504132432.26 0.00 2504132432.26 2450189252.52 0.00 2450189252.52
(1) Investments in Subsidiaries
Unit: RMB
Investee
Opening
balance
(carrying
amount)
Change in the current period
Closing balance
(carrying
amount)
Closing balance
of impairment
allowance
Additional
investment
Reduced
investment
Impairment
allowance
Others
Suzhou Gold
Mantis
Construction
Investment Co.Ltd.
500000000.0
0
500000000.00
Suzhou Gold
Mantis Curtain
Wall Co. Ltd.
420014675.5
0
420014675.50
Singapore Gold
Mantis Pte. Ltd.
274808342.5
0
3032422.33 277840764.83
Suzhou
Meiruide
Construction
Decoration Co.
Ltd.
244883165.5
6
244883165.56
Shuicheng
Ruitong
Construction
and
Development
Co. Ltd.
234034290.0
0
234034290.00
Gold Mantis
(International)
Construction
Decoration
Limited
135387794.6
6
61410800.00 196798594.66
Gold Mantis
Municipal
Engineering
Construction
(Guizhou) Co.Ltd.
122000000.0
0
122000000.00
Suzhou
Industrial Park
Jindejin
Construction
Engineering
Co. Ltd.
113792000.0
0
1030000.00 114822000.00
Gold Mantis
E-commerce
Co. Ltd.
105700000.0
0
105700000.00
Suzhou Gold
Mantis
Landscape Co.Ltd.
100000000.0
0
100000000.00
Suzhou
Industrial Park
Gold Mantis
Furniture
Design and
Manufacturing
Co. Ltd.
64583418.38 64583418.38
Xi’an Hi-tech
Zone Jinchuang
Commercial
Operation
Management
58555500.00 58555500.00
and
Development
Co. Ltd.
Gold Mantis Art
Co. Ltd.
15000000.00 15000000.00
Liaoning Gold
Mantis
Construction
Decoration Co.
Ltd.
10000000.00 10000000.00
Suzhou Jijia
Materials Co.Ltd.
10000000.00 10000000.00
Archi-Feeling
Design
(SuZhou) Co.Ltd.
7700000.00 7700000.00
Suzhou Huali
Jinshi
Construction
Decoration Co.
Ltd.
7200000.00 7200000.00
Gold Mantis
North China
(Beijing)
Construction
Decoration
Engineering
Co. Ltd.
6000000.00 6000000.00
Gold Mantis
East China
Construction
Decoration Co.
Ltd.
5000000.00 5000000.00
Suzhou Jinpu
No. 9 Cultural
Industrial
Development
Co. Ltd.
4000000.00 4000000.00
Sierra Gold
Mantis Joint
Venture
23.33 23.33
(Private)
Limited
Total
2438659209.
93
65473222.33
2504132432.
26
(2) Investments in Joint Ventures and Associates
Unit: RMB
Investee
Opening
balance
(carrying
amount)
Change in the current period
Closing
balance
(carrying
amount)
Closing
balance
of
impairme
nt
allowance
Additional
investment
Reduced
investme
nt
Return
on
investme
nt
recogniz
ed using
the
equity
method
Adjustme
nt to other
comprehe
nsive
income
Other
equity
changes
Declared
cash
dividends
or profit
Impairme
nt
allowance
Others
1. Joint ventures
2. Associates
Zhejiang
Tianyu
Commerc
ial
Operation
Managem
ent Co.Ltd.
1153004
2.59
9139622
.09
-239042
0.50
0.00 0.00
Subtotal
1153004
2.59
9139622
.09
-239042
0.50
Total
1153004
2.59
9139622
.09
-239042
0.50
(3) Other Information
On 22 December 2017 the Company and its subsidiary Refined Decoration & Technology
invested to establish Zhejiang Tianyu Commercial Operation Management Co. Ltd. jointly with
Zhongtian Holdings Group Co. Ltd. with a registered capital of RMB50 million. Specifically the
Company contributed RMB17.50 million accounting for 35.00% of the registered capital; Refined
Decoration & Technology contributed RMB7.50 million accounting for 15.00% of the registered
capital. Since the Company was able to exert a significant influence on Zhejiang Tianyu Commercial
Operation Management Co. Ltd. the equity method was adopted for accounting.In September 2020 the Company and its subsidiary Refined Decoration & Technology
transferred their 50% stake in Zhejiang Tianyu Commercial Operation Management Co. Ltd. to
Hangzhou Tianshuo Apartment Management Co. Ltd. based on the Agreement on Equity Transfer
and Relevant Matters signed between the Company and its subsidiary Refined Decoration &
Technology and Hangzhou Tianshuo Apartment Management Co. Ltd. and the registration of
industrial and commercial changes was completed on 29 October 2020.
4. Operating Revenue and Cost of Sales
Unit: RMB
Item
Current period Last year
Revenue Costs Revenue Costs
Core businesses 19445885694.44 16079983238.34 18377524760.69 14954507348.54
Other businesses 42556252.10 6765516.71 29910400.52 4201238.05
Total 19488441946.54 16086748755.05 18407435161.21 14958708586.59
Revenue information:
Unit: RMB
By contract category Segment 1 Segment 2 Total
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Information related to performance obligations:
None
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period the amount of income corresponding to performance obligations that had been contracted bu t not
yet performed or fully performed was RMB16343266487.17 of which RMB was expected to be recognized in year RMB
was expected to be recognized in year and RMB was expected to be recognized in year .Other information:
(1) Top Five Customers with Respect to Operating Revenue
Customer Operating revenue generated
from the customer
As a % of the total
operating revenue
Customer 1 3944681195.05 20.24
Customer 2 1108396916.19 5.69
Customer 3 344326369.83 1.77
Customer 4 262020032.31 1.34
Customer 5 218894281.29 1.12
Total 5878318794.67 30.16
5. Return on investment
Unit: RMB
Item Current period Last year
Return on long-term equity investments
measured using the equity method
-2390420.50 -4226587.96
Income from the disposal of long-term
equity investments
8360377.91
Income from the disposal of held-for-trading
financial assets
19931299.18 23039034.33
Income derived during the period of holding
other non-current financial assets
887120.46 4367000.00
Income from the disposal of other
non-current financial assets
23774839.16
Return on long-term equity investments
measured using the cost method
100000000.00
Interest expense on discounted receivables
financing
-4770456.83 -2596842.70
Total 22017920.22 144357442.83
6. Other Information
XVIII Supplementary Information
1. Schedule of Exceptional Gains and Losses in the Current Period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current
assets
16701006.66
Government grants through profit or loss
(exclusive of government grants given in the
Company’s ordinary course of business at
fixed quotas or amounts as per the
54243752.72
government’s uniform standards)
Capital occupation charges on non-financial
enterprises that are recognized in profit or
loss
1428722.80
Gain or loss on fair-value changes on
held-for-trading and derivative financial
assets and liabilities & income from disposal
of held-for-trading and derivative financial
assets and liabilities and other debt
investments (exclusive of the effective
portion of hedges that arise in the
Company’s ordinary course of business)
35346523.09
Reversed portions of impairment allowances
for receivables and contract assets which are
tested individually for impairment
3356920.55
Non-operating income and expense other
than the above
-3385100.86
Less: Income tax effects 19092692.94
Non-controlling interests effects (net
of tax)
3965266.47
Total 84633865.55 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
2. Return on Equity (ROE) and Earnings per Share (EPS)
Profit of the Reporting Period Weighted average ROE
EPS
Basic EPS (RMB/share)
Diluted EPS
(RMB/share)
Net profit attributable to ordinary
shareholders of the Company
14.83% 0.88 0.89
Net profit attributable to ordinary
shareholders of the Company
before exceptional gains and losses
14.30% 0.85 0.86
3. Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
(1) Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
(2) Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
(3) Please explain reasons for accounting data differences under CAS and IFRS and foreign accounting
standards. Where any reconciliation is carried out on the differences of the data audited by an overseas
audit firm the name of the overseas audit firm shall be specified.
4. Other Information
Part XIII Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative Chief Financial Officer
and head of the accounting department;
2. The original copy of the Independent Auditor’s Report signed and stamped by the certified public accountants
and stamped by the CPA firm;
3. All the originals of the Company’s announcements and documents that were disclosed to the public during the
Reporting Period on the media designated by the CSRC for information disclosure; and
4. The 2020 Annual Report carrying the signature of the Company’s legal representative.
5. The aforesaid documents are available in the Securities Department of the Company at No. 888 West Ring
Road Suzhou City Jiangsu Province China.Suzhou Gold Mantis Construction Decoration Co. Ltd.
Chairman of the Board: Wang Hanlin
30 April 2021