南 玻Ｂ:2021年半年度财务报告（英文版）
原标题:南 玻Ｂ:2021年半年度财务报告（英文版） Financial Report of Semi-annual Report 2021 (I) Auditors’ Report Whether the Semi-annual Report has been audited or not □ Yes √ No The Company's Semi-annual Report has not been audited. (II) Financial Statements All figures in the Notes to the Financial Statements are in RMB. 1. Consolidated Balance Sheet Prepared by CSG Holding Co., Ltd. Unit: RMB Item June 30, 2021 December 31,2020 Current assets Cash at bank and on hand 1,649,433,538 2,125,788,903 Notes receivable 183,242,770 207,966,892 Accounts receivable 842,381,600 681,467,133 Receivables financing 444,025,966 382,527,782 Trading financial assets 382,000,000 Advances to suppliers 141,433,334 85,928,641 Other receivables 205,710,766 200,969,854 Of which: interest receivable 112,611 Inventories 1,054,226,305 815,156,318 Other current assets 114,744,303 140,031,544 Total current assets 5,017,198,582 4,639,837,067 Non-current assets Investment property 383,084,500 383,084,500 Fixed assets 8,742,434,064 9,145,644,569 Construction in progress 2,290,839,174 1,893,380,611 Right of use assets 9,298,566 Intangible assets 1,172,586,946 1,139,718,255 Development expenditure 58,155,596 49,153,407 Goodwill 233,375,693 233,375,693 Long-term prepaid expenses 577,769 10,381,937 Deferred tax assets 203,555,196 194,979,414 Other non-current assets 451,995,544 193,359,445 Total non-current assets 13,545,903,048 13,243,077,831 Total assets 18,563,101,630 17,882,914,898 Current liabilities Short-term borrowings 312,560,100 352,895,571 Notes payable 304,710,352 144,851,192 Accounts payable 1,242,148,009 1,237,833,051 Contract liabilities 273,225,477 296,776,624 Employee benefits payable 255,406,964 342,352,166 Taxes payable 229,367,695 194,921,071 Other payables 233,274,223 287,332,992 Of which: interest payable 34,601,072 132,133,902 Non-current liabilities due within one year 135,934,639 927,531,709 Other current liabilities 32,329,042 34,586,292 Total current liabilities 3,018,956,501 3,819,080,668 Non-current liabilities Long-term borrowings 1,190,557,017 853,253,983 Bonds payable 1,995,284,179 1,994,020,348 Deferred income 574,616,481 498,056,081 Deferred tax liabilities 105,738,792 102,619,932 Total non-current liabilities 3,866,196,469 3,447,950,344 Total liabilities 6,885,152,970 7,267,031,012 Shareholders’ equity Share capital 3,070,692,107 3,070,692,107 Capital surplus 596,997,085 596,997,085 Other comprehensive income 163,139,310 161,816,819 Special reserve 9,102,592 10,269,002 Surplus reserve 1,036,948,422 1,036,948,422 Undistributed profits 6,381,714,666 5,336,266,412 Total equity attributable to shareholders of parent company 11,258,594,182 10,212,989,847 Minority shareholders' equity 419,354,478 402,894,039 Total shareholders' equity 11,677,948,660 10,615,883,886 Total liabilities and shareholders' equity 18,563,101,630 17,882,914,898 Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin 2. Balance Sheet of the Parent Company Unit: RMB Item June 30, 2021 December 31,2020 Current assets Cash at bank and on hand 299,216,278 1,072,875,571 Trading financial assets 340,000,000 Advances to suppliers 1,656,513 1,650,184 Other receivables 3,402,565,195 3,803,908,369 Of which: interest receivable 112,611 Of which: dividends receivable 249,087,257 Other current assets 66,321 Total current assets 4,043,437,986 4,878,500,445 Non-current assets Long-term equity investments 6,174,306,870 5,844,507,870 Fixed assets 12,944,175 19,769,193 Intangible assets 348,308 140,836 Other non-current assets 86,071,233 4,546,275 Total non-current assets 6,273,670,586 5,868,964,174 Total assets 10,317,108,572 10,747,464,619 Current liabilities Short-term borrowings 114,000,000 49,800,000 Accounts payable 1,551,761 249,721 Employee benefits payable 32,838,881 46,504,458 Taxes payable 6,685,127 9,457,159 Other payables 857,545,717 1,002,135,702 Of which: interest payable 33,556,927 131,513,019 Non-current liabilities due within one year 800,000,000 Total current liabilities 1,012,621,486 1,908,147,040 Non-current liabilities Long-term borrowings 892,500,000 700,000,000 Bonds payable 1,995,284,179 1,994,020,348 Deferred income 172,902,300 180,496,249 Total non-current liabilities 3,060,686,479 2,874,516,597 Total liabilities 4,073,307,965 4,782,663,637 Shareholders’ equity Share capital 3,070,692,107 3,070,692,107 Capital surplus 741,824,399 741,824,399 Surplus reserve 1,051,493,782 1,051,493,782 Undistributed profits 1,379,790,319 1,100,790,694 Total shareholders' equity 6,243,800,607 5,964,800,982 Total liabilities and shareholders' equity 10,317,108,572 10,747,464,619 3. Consolidated Income Statement Unit: RMB Item Half year of 2021 Half year of 2020 I. Total revenue 6,614,802,538 4,424,221,349 Of which:Business income 6,614,802,538 4,424,221,349 II. Total business cost 4,992,720,799 3,967,771,208 Of which:Business cost 4,126,627,145 3,159,567,031 Tax and surcharge 73,966,054 52,338,392 Sales expenses 125,326,015 161,639,534 Administrative expenses 354,914,704 317,419,407 R&D expenses 224,886,882 145,063,647 Financial expenses 86,999,999 131,743,197 Of which: interest expense 101,970,419 152,178,964 Interest income 20,024,847 24,931,363 Plus: Other income 36,553,804 48,009,326 Investment income (“- “for loss) 3,672,330 Credit impairment loss (“- “for loss) -2,524,048 -2,961,920 Asset impairment loss (“- “for loss) -26,753,082 154,053 Income on disposal assets (“- “for loss) 137,638 -342,005 III. Operational profit (“- “for loss) 1,633,168,381 501,309,595 Plus: non-operational income 7,551,798 2,218,131 Less: non-operational expenditure 16,461,985 17,535,553 IV. Total profit (“- “for loss) 1,624,258,194 485,992,173 Less: Income tax expenses 255,280,290 84,115,208 V. Net profit (“- “for net loss) 1,368,977,904 401,876,965 (I) Classification by business continuity 1. Net profit from continuing operations (“-” for net loss) 1,368,977,904 401,876,965 (II) Classification by ownership 1. Equity attributable to shareholders of parent company 1,352,517,465 391,466,723 2.Minority shareholder gains and losses 16,460,439 10,410,242 VI. Other comprehensive income net after tax 1,322,491 1,366,772 Other comprehensive income net after tax attributable to shareholders of parent company 1,322,491 1,366,772 (I) Other comprehensive income that will be reclassified into profit and loss 1,322,491 1,366,772 1.Differences on translation of foreign currency financial statements 1,322,491 1,366,772 VII. Total comprehensive income 1,370,300,395 403,243,737 Total comprehensive income attributable to shareholders of parent company 1,353,839,956 392,833,495 Total comprehensive income attributable to minority shareholders 16,460,439 10,410,242 VIII. Earnings per share: (I) Basic earnings per share 0.44 0.13 (II) Diluted earnings per share 0.44 0.13 Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin 4. Income Statement of the Parent Company Unit: RMB Item Half year of 2021 Half year of 2020 I. Revenue 42,342,857 37,484,754 Less: Business cost Tax and surcharge 674,374 1,021,570 Sales expenses Administrative expenses 91,345,095 59,530,745 R & D expenses 616,965 9,250 Financial expenses 76,018,822 79,503,361 Of which: interest expense 94,186,512 100,457,503 Interest income 17,977,849 22,683,049 Plus: Other income 2,018,355 1,955,221 Investment income(“- “for loss) 718,475,642 703,591,508 Credit impairment loss (“- “for loss) -9,473 6,972 Income on disposal assets (“- “for loss) 6,893,580 981 II. Operating profit 601,065,705 602,974,510 Add: Non-operating income 29,967 Less: Non-operating expenses 15,026,836 4,119,550 III. Total profit (“- “for loss) 586,068,836 598,854,960 Less: Income tax expenses IV. Net profit (“- “for loss) 586,068,836 598,854,960 (I) Net profit for continuing operations(“- “for loss) 586,068,836 598,854,960 VI. Total comprehensive income 586,068,836 598,854,960 VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share 5. Consolidated Cash Flow Statement Unit: RMB Item Half year of 2021 Half year of 2020 I. Cash flows from operating activities Cash received from sales of goods or rendering of services 7,148,379,280 4,739,003,316 Refund of taxes and surcharges 33,207,751 11,866,382 Receive other cash related to operating activities 178,825,175 69,696,304 Subtotal of cash inflow from operating activities 7,360,412,206 4,820,566,002 Cash paid for goods and services 3,907,366,000 2,767,721,923 Cash paid to and on behalf of employees 888,450,173 708,599,327 Payments of taxes and surcharges 619,574,024 284,726,645 Pay other cash related to operating activities 246,776,634 279,873,718 Subtotal of cash outflow from operating activities 5,662,166,831 4,040,921,613 Net cash flows from/(used in) operating activities 1,698,245,375 779,644,389 II. Cash flows from investing activities Cash received from investment recovery 1,182,000,000 Cash received from investment income 3,559,719 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 777,451 723,823 Cash received relating to other investing activities 32,136,351 328,067,104 Subtotal of cash inflows from investing activities 1,218,473,521 328,790,927 Cash paid to acquire fixed assets, intangible assets and other long-term assets 738,492,345 436,165,155 Cash paid for investment 1,644,000,000 Cash paid relating to other investing activities 6,911,853 21,848,237 Subtotal of cash outflows from investing activities 2,389,404,198 458,013,392 Net cash flows (used in)/from investing activities -1,170,930,677 -129,222,465 III. Cash flows from financing activities Cash received from borrowings 605,996,933 1,243,981,261 Cash received from bond issuance 1,991,680,000 Cash received relating to other financing activities 298,227 Subtotal of cash inflows from financing activities 605,996,933 3,235,959,488 Cash repayments of borrowings 1,099,975,831 1,827,110,966 Cash payments for interest expenses and distribution of dividends or profits 508,082,947 336,678,849 Cash payments relating to other financing activities 390,507 483,358,139 Subtotal of cash outflows from financing activities 1,608,449,285 2,647,147,954 Net cash flows (used in)/from financing activities -1,002,452,352 588,811,534 IV. Effect of foreign exchange rate changes on cash and cash equivalents -1,217,711 587,483 V. Net increase/(decrease) in cash and cash equivalents -476,355,365 1,239,820,941 Add: Cash and cash equivalents at beginning of current period 2,124,028,196 1,831,835,030 VI. Cash and cash equivalents at end of current period 1,647,672,831 3,071,655,971 6. Cash Flow Statement of the Parent Company Unit: RMB Item Half year of 2021 Half year of 2020 I. Cash flows from operating activities Refund of taxes and surcharges 613,917 Cash received relating to other operating activities 29,031,997 29,744,731 Sub-total of cash inflows 29,031,997 30,358,648 Cash paid to and on behalf of employees 77,605,388 79,870,460 Payments of taxes and surcharges 11,908,472 7,235,926 Cash paid relating to other operating activities 31,121,887 13,995,974 Sub-total of cash outflows 120,635,747 101,102,360 Net cash flows from/(used in) operating activities -91,603,750 -70,743,712 II. Cash flows from investing activities Cash received from investment recovery 1,090,000,000 Cash received from investment income 967,450,288 703,591,508 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 101,560 1,000 Cash received relating to other investing activities 300,000,000 Sub-total of cash inflows 2,057,551,848 1,003,592,508 Cash paid to acquire fixed assets, intangible assets and other long-term assets 2,669,478 5,332,761 Cash paid for investing activities 1,839,799,000 188,500,000 Sub-total of cash outflows 1,842,468,478 193,832,761 Net cash flows (used in)/from investing activities 215,083,370 809,759,747 III. Cash flows from financing activities Cash received from borrowings 314,000,000 832,999,801 Cash received from issuing bonds 1,991,680,000 Cash received relating to other financing activities 143,736,716 Sub-total of cash inflows 457,736,716 2,824,679,801 Cash repayments of borrowings 857,300,000 1,331,999,801 Cash payments for interest expenses and distribution of dividends or profits 497,947,983 308,585,809 Other cash paid relating to financing activities 722,080,591 Subtotal of cash outflows from financing activities 1,355,247,983 2,362,666,201 Net cash flows (used in)/from financing activities -897,511,267 462,013,600 IV. Effect of foreign exchange rate changes on cash and cash equivalents 372,354 5,810 V.Net increase/(decrease) in cash and cash equivalents -773,659,293 1,201,035,445 Add: Cash and cash equivalents at beginning of current period 1,071,200,364 1,407,215,863 VI. Cash and cash equivalents at end of current period 297,541,071 2,608,251,308 7. Consolidated Statement of Changes in Owners’ Equity Amount of the current period Unit: RMB Item Half year of 2021 Owners’ Equity Attributable to the Parent Company Minority shareholders' equity Total shareholders' equity Share capital Capital surplus Other comprehensive income Special reserves Surplus reserve Undistributed profits Subtotal I. Balance at the end of the previous year 3,070,692,107 596,997,085 161,816,819 10,269,002 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886 II. Balance at the beginning of current year 3,070,692,107 596,997,085 161,816,819 10,269,002 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886 III. Amount of change in current term(“- “for decrease) 1,322,491 -1,166,410 1,045,448,254 1,045,604,335 16,460,439 1,062,064,774 (I) Total amount of the comprehensive income 1,322,491 1,352,517,465 1,353,839,956 16,460,439 1,370,300,395 (II) Capital paid in and reduced by owners 1. The amount of share-based payment included in owner's equity 2. Others (III) Profit distribution -307,069,211 -307,069,211 -307,069,211 1. Appropriations to owners (or shareholders) -307,069,211 -307,069,211 -307,069,211 (IV) Internal carry-forward of owners’ equity (V) Specific reserve -1,166,410 -1,166,410 -1,166,410 1. Withdrawal in the period 2. Used in the period 1,166,410 1,166,410 1,166,410 (VI) Others IV. Balance at the end of the period 3,070,692,107 596,997,085 163,139,310 9,102,592 1,036,948,422 6,381,714,666 11,258,594,182 419,354,478 11,677,948,660 Amount of the previous period Unit: RMB Item Half year of 2020 Owners’ Equity Attributable to the Parent Company Minority shareholders' equity Total shareholders' equity Share capital Capital surplus Less: treasury share Other comprehensive income Special reserves Surplus reserve Undistributed profits Subtotal I. Balance at the end of the previous year 3,106,915,005 683,219,358 118,066,397 6,565,864 11,102,921 946,251,286 4,859,600,841 9,495,588,878 370,266,650 9,865,855,528 II. Balance at the beginning of current year 3,106,915,005 683,219,358 118,066,397 6,565,864 11,102,921 946,251,286 4,859,600,841 9,495,588,878 370,266,650 9,865,855,528 III. Amount of change in current term(“- “for decrease) -36,222,898 -86,222,273 -118,066,397 1,366,772 -436,183 179,503,838 176,055,653 10,410,242 186,465,895 (I) Total amount of the comprehensive income 1,366,772 391,466,723 392,833,495 10,410,242 403,243,737 (II) Capital paid in and reduced by owners -36,222,898 -86,222,273 -118,066,397 -4,378,774 -4,378,774 1. The amount of share-based payment included in owner's equity -36,222,898 -86,222,273 -118,066,397 -4,378,774 -4,378,774 2. Others (III) Profit distribution -211,962,885 -211,962,885 -211,962,885 1. Appropriations to owners (or shareholders) -211,962,885 -211,962,885 -211,962,885 (IV) Internal carry-forward of owners’ equity (V) Specific reserve -436,183 -436,183 -436,183 1. Withdrawal in the period 2. Used in the period 436,183 436,183 436,183 (VI) Others IV. Balance at the end of the period 3,070,692,107 596,997,085 7,932,636 10,666,738 946,251,286 5,039,104,679 9,671,644,531 380,676,892 10,052,321,423 8. Statement of changes in owner's equity of the parent company Amount of the current period Unit: RMB Item Half year of 2021 Share capital Capital surplus Surplus reserve Undistributed profits Total shareholders' equity I. Balance at the end of the previous year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982 II. Balance at the beginning of current year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982 III. Amount of change in current term(“- “for decrease) 278,999,625 278,999,625 (I) Total amount of the comprehensive income 586,068,836 586,068,836 (II) Capital paid in and reduced by owners 1. The amount of share-based payment included in owner's equity (III) Profit distribution -307,069,211 -307,069,211 1. Withdrawal of surplus reserve 2. Appropriations to owners (or shareholders) -307,069,211 -307,069,211 (IV) Internal carry-forward of owners’ equity (V) Special reserve IV. Balance at the end of the period 3,070,692,107 741,824,399 1,051,493,782 1,379,790,319 6,243,800,607 Amount of the previous period Unit: RMB Item Half year of 2020 Share capital Capital surplus Less: treasury share Surplus reserve Undistributed profits Total shareholders' equity I. Balance at the end of the previous year 3,106,915,005 828,046,672 118,066,397 960,796,646 496,479,354 5,274,171,280 II. Balance at the beginning of current year 3,106,915,005 828,046,672 118,066,397 960,796,646 496,479,354 5,274,171,280 III. Amount of change in current term(“- “for decrease) -36,222,898 -86,222,273 -118,066,397 386,892,075 382,513,301 (I) Total amount of the comprehensive income 598,854,960 598,854,960 (II) Capital paid in and reduced by owners -36,222,898 -86,222,273 -118,066,397 -4,378,774 1.The amount of share-based payment included in owner's equity -36,222,898 -86,222,273 -118,066,397 -4,378,774 (III) Profit distribution -211,962,885 -211,962,885 1. Withdrawal of surplus reserve -211,962,885 -211,962,885 2. Appropriations to owners (or shareholders) (IV) Internal carry-forward of owners’ equity (V) Special reserve IV. Balance at the end of the period 3,070,692,107 741,824,399 960,796,646 883,371,429 5,656,684,581 III. Basic Information of the Company CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a joint venture enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen Building Materials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司) and Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen, Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen, Guangdong Province of the People's Republic of China. The Company issued RMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”) publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June 30, 2021, the registered capital was RMB 3,070,692,107, with nominal value of RMB1 per share. The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of flat glass, specialized glass, engineering glass, energy saving glass, silicon related materials, polysilicon and solar components and electronic-grade display device glass and the construction and operation of photovoltaic plant etc. The financial statements were authorized for issue by the Board of Directors on August 25, 2021. Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note. IV. Basis of the preparation of financial statements 1. Basis of preparation The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued by China Security Regulatory Commission. 2. Going concern This financial report is prepared on the basis of going concern. V. Significant accounting policies and accounting estimates The Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation, which are mainly reflected in the measurement of expected credit losses of receivables, the valuation method of inventories, fixed asset depreciation and intangible asset amortization, judgment standards for capitalization of development expenditures, income confirmation time, etc. Please see the Note for the key judgements adopted by the Group in applying important accounting policies. 1. Statement of compliance with the Accounting Standards for Business Enterprises The financial statements of the Company for the first half year of 2021 truly and completely present the financial position as of June 30, 2021 and the operating results, cash flows and other information for the first half year of 2021 of the Group and the Company in compliance with the Accounting Standards for Business Enterprises. 2. Accounting period The Company’s accounting year starts on 1 January and ends on 31 December. 3. Operating cycle The Company’s operating cycle starts on 1 January and ends on 31 December. 4. Recording currency The recording currency is Renminbi (RMB). 5. Accounting treatment method of business combination under common control and not under common control (a)Business combinations involving entities under common control The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. The difference between book value of the net assets obtained from the combination and book value of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognized amounts of the equity or debt securities. (b) Business combinations involving entities not under common control The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognized as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognized in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognized amounts of the equity or debt securities. 6. Preparation of consolidated financial statements The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries. Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date presented separately in the consolidated income statement. In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date. All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to Company are recognized as minority interests and presented separately in the consolidated financial statements under equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the parent in the subsidiary. After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minority shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assets and liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date. Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisition of minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to. The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital premium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group. 7. Criteria for determining cash and cash equivalents Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. （未完）  |