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Individual stock announcement text

Kevin Education: Semi-annual Report of 2018

Date: 2018-08-08download attachment

Beijing Kaiwen Dexin Education Technology Co., Ltd.

Semi-annual report for 2018

August 2018

Section Important, catalogs and Interpretation

The board of directors, the board of supervisors, directors, supervisors and senior management personnel guarantee the truthfulness, accuracy and completeness of the contents of the semi-annual report. There are no false records, misleading statements or major omissions, and they bear individual and joint legal liabilities.

Xu Guangyu, person in charge of the company, Dong Qi, person in charge of accounting work, and Dong Qi, person in charge of accounting organ (accounting officer) hereby confirm that the financial report in this semi-annual report is true, accurate and complete.

All directors have attended the board meeting to review this report.

The company has detailed the main risks that will be faced in the future in this report. For details, please refer to the “10. Risks and Countermeasures for the Company” section of “Section IV Management Discussion and Analysis” of this report. Investors should pay attention to investment. risk.

The company plans not to distribute gold dividends, not to send bonus shares, and not to convert public reserves into share capital.

table of Contents

Section Important, catalogs and Interpretation......................................... .................................................. ............2

Section 2 Company Profile and Key Financial Indicators................................................ .................................................. ........5

Section III Company Business Overview........................................... .................................................. .........................8

Section IV Discussion and Analysis of Business Situation.......................................... .................................................. .............12

Section 5 Important matters................................................ .................................................. ...............................twenty two

Section VI Changes in Shares and Shareholders.......................................... .................................................. .............32

Section VII. Preference Shares.......................................... .................................................. ....................36

Section VIII Directors, Supervisors and Senior Management.......................................... ..............................................37

Section IX Corporate Bond Related Situations.......................................... .................................................. ....................38

Section X Financial Report................................................ .................................................. ...............................39

Section XI Documents for reference........................................... .................................................. ..................138

Interpretation

Interpretative term
Company, the company, Kevin Education refers to Beijing Kaiwen Dexin Education Technology Co., Ltd.
Zhongtai Bridge refers to the original name of Jiangsu Zhongtai Bridge Steel Structure Co., Ltd., January 2018
The company changed its name to Beijing Kaiwen Dexin Education Technology Co., Ltd.
Controlling shareholder, Badachu Holdings refers to Badachu Holding Group Co., Ltd., the controlling shareholder of the company
Haidian District State-owned Assets Supervision and Administration Commission refers to the State-owned Assets Supervision and Administration Commission of the Haidian District People's Government of Beijing, the actual controller of the company
Wenhua Xuexin refers to Beijing Wenhua Xuexin Education Investment Co., Ltd., a wholly-owned subsidiary of the company.
Wen Kaixing refers to Beijing Wenkaixing Education Investment Co., Ltd., a wholly-owned subsidiary of the company.
Kevin Zhixin refers to Beijing Kaiwen Zhixin Education Investment Co., Ltd., a wholly-owned subsidiary of the company.
Kai Literature and Kevin Sports refers to Beijing Kaiwenwen Sports Investment Management Co., Ltd., a wholly-owned subsidiary of the company.
Kevin Ruixin refers to Beijing Kaiwen Ruixin International Education Technology Co., Ltd., the company's holding subsidiary
Kevin Hengxin refers to Beijing Kaiwen Hengxin Education Technology Co., Ltd., a wholly-owned subsidiary of the company.
Kevin Renxin refers to Beijing Kaiwen Renxin Education Technology Co., Ltd., a wholly-owned subsidiary of the company.
Kevin International Education refers to Kevin International Education Co., Ltd., a wholly-owned subsidiary of the company.
Kai Yu Xin De refers to Beijing Kai Yu Xin De Restaurant Management Co., Ltd., the company's holding subsidiary
Chaoyang Kewen School refers to Beijing Chaoyang Kewen School, located in Jinbu Township, Chaoyang District, Beijing.
Kaidian School of Haidian refers to Beijing Haidian Kewen School, located at No. 65, Xingshikou Road, Haidian District, Beijing.
Westminster Choir College, Westminster
Westminster Conservatory of Music and Westminster Continuing Education
Westminster Continuing Education
China Securities Regulatory Commission
Shenzhen Stock Exchange refers to Shenzhen Stock Exchange
Yuan, 10,000 yuan refers to RMB yuan, RMB 10,000 yuan


Section II Company Profile and Key Financial Indicators

First, the company profile

Stock abbreviation Kevin Education (former stock abbreviation: Zhongtai Bridge; stock code 002659
Change date: January 24, 2018)
Changed stock short name (if any) Kevin Education
Stock-listed stock exchange Shenzhen Stock Exchange
Company's Chinese name Beijing Kaiwen Dexin Education Technology Co., Ltd.
Chinese abbreviation of the company (if any) Kevin Education
Company's foreign name (if any) Beijing KaiwenEducationTechnologyCo.,Ltd
Company's foreign name abbreviation (if any) KaiwenEducation
Legal representative of the company Xu Guangyu


Second, contacts and contact information

Secretary of the board of directors
Name Shi Yu Yang Wei
Address: No. 5, Yangshan Park, No. 30 Anli Road, Chaoyang District, Beijing No. 5, Yangshan Park, No. 30 Anli Road, Chaoyang District, Beijing
First floor, first floor
Telephone 010-59217890 010-59217730
Fax 010-59217828 010-59217828
E-mail Kaiwen002659@kaiwenedu.com Kaiwen002659@kaiwenedu.com


Third, other circumstances

1. Company contact information

Company registered address, company office address and its zip code, company website address, e-mail address changed during the reporting period

√Applicable □Not applicable

Registered Address 109, 1st Floor, West Section, Building 2, 4th District, Xishan Creative Park, Haidian District, Beijing
Postal code of company registered address 100093
Company Address: 1st Floor, Building 5, Yangshan Park, No. 30 Anli Road, Chaoyang District, Beijing
Postal code of company office address 100101
Company website http://www.kaiwenedu.com/
Company E-mail Kaiwen002659@kaiwenedu.com
Date of enquiry of the designated website disclosed in the provisional announcement (if any) January 24, 2018
The designated website query index disclosed in the temporary announcement (if any)


2. Information disclosure and location

Whether the information disclosure and location of the information changed during the reporting period

□Applicable √Not applicable

The name of the newspaper selected by the company for information disclosure, the website of the designated website of the China Securities Regulatory Commission that publishes the semi-annual report, and the semi-annual report of the company has no change during the reporting period.

See the 2017 Annual Report for details.

Fourth, the main accounting data and financial indicators

Does the company need to retroactively adjust or restate previous year's accounting data?

□Yes, no

During the reporting period, the same period of the previous year, the reporting period increased or decreased compared with the same period of the previous year.
Operating income (yuan) 89,382,042.19 231,266,909.27 -61.35%
Net profit attributable to shareholders of listed companies (yuan) -51,679,144.94 -25,314,001.34 -104.15%
Deduction of non-recurring losses attributable to shareholders of listed companies -52,041,698.87 -29,322,367.22 -77.48%
Net profit of benefits (yuan)
Net cash flow from operating activities (yuan) 49,228,891.98 17,729,918.34 177.66%
Basic earnings per share (yuan / share) -0.10 -0.05 -100.00%
Diluted earnings per share (yuan/share) -0.10 -0.05 -100.00%
Weighted average return on equity -2.37% -1.14% -1.23%
At the end of the reporting period, the end of the previous year, the end of the reporting period is higher than the end of the previous year.
Less
Total assets (yuan) 3,184,470,613.66 3,145,033,562.10 1.25%
Net assets attributable to shareholders of listed companies (yuan) 2,152,583,456.07 2,203,626,501.33 -2.32%


V. Differences in accounting data under domestic and overseas accounting standards

1. Differences in net profit and net assets in financial reports disclosed in accordance with international accounting standards and in accordance with Chinese accounting standards

□Applicable √Not applicable

During the reporting period, there was no difference in net profit and net assets in the financial statements disclosed in accordance with international accounting standards and in accordance with PRC accounting standards.

2. Differences in net profit and net assets in the financial reports disclosed in accordance with overseas accounting standards and in accordance with Chinese accounting standards

□Applicable √Not applicable

During the reporting period, there was no difference in net profit and net assets in the financial statements disclosed in accordance with overseas accounting standards and in accordance with PRC accounting standards.

6. Non-recurring profit and loss items and amounts

√Applicable □Not applicable

unit: yuan

Item Amount Description
Government subsidies included in the current profit and loss (closely related to the business of the enterprise, according to the national system 595, 900.00
Except for government subsidies for a standard quota or quantitative basis)
Entrust others to invest or manage the profit and loss of assets 153,195.12
Other non-operating income and expenses other than the above -199,999.81
Less: Income tax impact 137,273.83
Minority shareholders' equity impact (after tax) 49,267.55
Total 362,553.93 --


Non-recurring gains and losses items defined by the company in accordance with the definition of “Interpretive Announcement of Information Disclosure of Companies That Offer Securities to the Public No. 1 – Non-recurring Gains and Losses”

The non-recurring profit and loss items listed in Interpretive Announcement No. 1 of the Company's Information Disclosure of Development Bank Securities – Non-recurring Gains and Losses are defined as items of recurring profit and loss.

Explain the reason

□Applicable √Not applicable

During the reporting period, the company did not have any non-recurring gains and losses as defined and listed in the Interpretive Announcement No. 1 of the Company Information Disclosure of Public Offering Securities – Non-recurring Gains and Losses.

The project is defined as the case of a project with recurring gains and losses.

Section III Business Overview

I. Main business engaged by the company during the reporting period

Does the company need to comply with disclosure requirements for specific industries?

no

(1) The main business, products, business models, etc. the company engaged in during the reporting period

Kevin Education aims to "train leaders with family feelings and international vision" and is committed to "leading students to find the right path for themselves; helping teachers to climb the dream of education; promoting schools to rank among the world's top schools" as their vision. Based on the construction of the entity school, the above-mentioned downstream industries are extended, and the business covers the international education eco-industrial chain of K12 education, sports art training, camp education, brand output, upstream and downstream training, through internal resource integration, strong alliance and external extension. Equal emphasis on the industry leading position.

In the business model, the company adopts the business model of “K12 Entity School + Sports, Art Training + Camp Education + Brand Output”. Based on the physical school, we obtain resource background, brand effect and audience, and carry out education and related businesses with sports training, art training, camp education, brand output and upstream and downstream training as profit points.

In its main business, Kevin Education has quality education and education related industry services. International Schools: The company currently has two K12 International Education Schools in Beijing, namely Beijing Haidian Kewen School and Beijing Chaoyang Kewen School. The two schools are in the leading position in the same industry in terms of hardware facilities, teacher strength, teaching system and teaching characteristics. Sports training and camp education: Kevin Sports, a wholly-owned subsidiary of the company, is a development platform. Based on physical schools, it integrates high-quality educational resources in the campus and establishes cooperative relationships with internationally renowned sports companies to provide professional schools. At the same time of the physical education curriculum, we will develop customized and professional sports training, camp education and youth sports events for the society. All sectors will achieve good mutual assistance and coordinated development, and build a leading brand for domestic youth sports training. In the field of brand output and progression training, the company's education research institute integrates domestic and international top-notch and mature international education concepts and systems, and establishes a talent system for outstanding teachers to explore and reserve, as well as an international teacher training, education system and teaching material research and development system. Established the Kevin brand management service output platform.

(II) Characteristics of industry development during the reporting period

1. National policies further promote the development of private education

If education is prosperous, then the nation is prosperous; if education is strong, then the country is strong. In today's world, talent has become the core of national competitiveness, and education has become the foundation of national competitiveness. In the profound transformation of human society, education has become more and more dominant and plays a pivotal role. In recent years, the state has continuously introduced reform policies for the current education system. The State Council and various ministries and commissions have successively issued a number of policies to vigorously support the healthy development of the private education industry.

In March 2017, Premier Li Keqiang proposed in the "2017 State Council Government Work Report" to ensure fair and quality education, which clearly pointed out "supporting and standardizing the development of private education."

In January 2017, the relevant person in charge of the Ministry of Education commented on the "Several Opinions of the State Council on Encouraging Social Forces to Establish Education to Promote the Healthy Development of Private Education" and mentioned that "encouraging social forces to establish education and promote the healthy development of private education is the Party Central Committee. A major decision-making arrangement of the State Council is an important task assigned by the relevant departments and local governments at all levels in the current and future periods."

In January 2017, the “13th Five-Year Plan for National Education Development” proposed that the theme of comprehensively improving the quality of education should be based on the fundamental task of the Lideshu people and fully implement quality education to “shape the students’ physical fitness” and “ "Improve students' cultural cultivation" as two important development guidelines, encourage the inclusion of artistic practice activities in classroom management, promote each student to have one or two artistic specialties and hobbies; start reforming physical education teaching, training and competitive systems, and strengthen physical education classes according to local conditions. Extracurricular exercise, vigorously support the development of various sports associations such as campus football, ice and snow sports. Encourage schools to vigorously develop students' sports interests, motor skills, and exercise habits, and basically achieve the goal of students mastering more than one motor skill.

In November 2016, the 24th meeting of the Standing Committee of the 12th National People's Congress adopted the amendment<中华人民共和国民办教育促进法>The decision, the revised decision will take effect on September 1, 2017. The newly revised "Private Education Promotion Law" states: "The organizers of private schools may choose to set up non-profit or for-profit private schools. However, no for-profit private schools that implement compulsory education may be established." The prescribed tax incentives; among them, non-profit private schools enjoy the same tax incentives as public schools."

In November 2015, the "Proposal of the Central Committee of the Communist Party of China on Formulating the Thirteenth Five-Year Plan for National Economic and Social Development" supports and regulates the development of private education and encourages social forces and private capital to provide diversified educational services.

In 2013, the Ministry of Education issued the “Interim Measures for the Administration of International Projects in High Schools”, and the policy on the international classes for public schools began to tighten, requiring no new international classes to be approved, and the number of students enrolled in the existing public international classes no longer increased.

These information show that the state attaches great importance to the development of private education, and at the same time clarifies the design and management mechanism of the top-level system of private education.

2. The society's recognition of private education is getting higher and higher.

With the rapid development of China's economy, the continuous improvement of the national economy and the expanding international vision of Chinese people, Chinese parents and students are increasingly demanding study abroad. According to the Ministry of Education, in 2017, the number of students studying abroad exceeded 600,000 for the first time, reaching 608,400, an increase of 11.74% over the same period of last year, and continued to maintain the status of the world's largest student. In 2017, the scale of Chinese students studying abroad and returning to China has doubled, and the degree of cooperation with national strategies and industry needs has been continuously improved, and the development trend has continued to improve. However, due to various differences in language, culture and education, it is difficult for students to directly transition from domestic to foreign study and life. Before they study abroad, they can adapt to the foreign teaching environment and teaching methods by entering international schools in China, and become the choice of many Chinese families. .

As of October 2017, according to the new academic statistics, there are 734 international schools that have obtained the certification standards for various courses nationwide, including 126 schools for foreigners, 367 private schools, and 241 public schools. International schools emphasize that through academic training, students can develop independent and critical thinking skills in the collision of different viewpoints and different theories, cultivate cross-cultural international perspectives, integrate with foreign university courses, and be able to connect students globally. Apply for a strong support from a prestigious school.

The two K12 international schools under the company mainly focus on Chinese students, focusing on the cultivation of students' comprehensive quality, and cultivating young people with family feelings, international vision and high quality in order to integrate with the international curriculum. The professional guidance team provides tailor-made guidance for students who wish to study abroad, and provides a strong guarantee for their entry into an ideal overseas university.

3. The government vigorously advocates the development of physical education industry

In October 2014, the State Council issued the “Several Opinions on Accelerating the Development of Sports Industry to Promote Sports Consumption” (Guo Fa [2014] No. 46), proposing to actively promote the reform of the venue management system and the innovation of operational mechanisms, and introduce and apply modern enterprise systems to stimulate The venue is vibrant. Promote the integrated mode of venue design, construction, operation and management, and combine the functional needs of the event with the comprehensive utilization after the game. Encourage the venue operation management entity to realize large-scale and professional operation through brand output, management output, capital output, etc.; accelerate the opening of sports facilities such as enterprises and institutions to the society, and open the school sports halls to students in the spare time and take effective measures. Strengthen safety and security, and accelerate the opening of school sports venues to the society; it is required that the total size of the sports industry will exceed 5 trillion yuan by 2025, and it is proposed to form a new sports consumption hotspot with ice and snow as a breakthrough.

In July 2015, the Beijing Municipal People's Government issued the “Implementation Opinions on Accelerating the Development of Sports Industry to Promote Sports Consumption” and proposed “exploring the operation of the operation of sports venues of state-owned enterprises and schools and other state-owned units by third-party operating agencies to stimulate The vitality of the stadium. Encourage the stadium's operation and management enterprises with brand influence to achieve scale, specialization and chain operation through brand output, management output, professional technology and talent output. Create 2 to 3 domestic first-class, Internationally renowned sports venue management company."

The company's Kevin Sports focuses on the field of youth sports training, and cooperates with international first-class professional sports operation platforms and clubs to introduce international brands and overseas quality teachers for various sports. In the fields of baseball, football, ice hockey, golf, tennis, synchronized swimming and other fields, we will carry out professional sports training for young people and hold professional competitions to provide high-quality physical education courses for international schools and to create sports programs that are in line with international standards. On the basis of satisfying the international school sports characteristics curriculum, the company cultivates sports talents for the society and establishes a banner in the field of youth sports training to create profit growth points for the company.

Second, major changes in major assets

1. Significant changes in major assets

Major assets
Equity assets have no major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in progress No major changes
The ending balance of accounts receivable during the reporting period was RMB 384,492.39, which was an increase from the opening balance of RMB 129,115.44.
Accounts receivable 197.79%, mainly due to the increase in service income of academic education around the reporting period, resulting in an increase in the income settlement of each period.
Plus, the ending balance of accounts receivable increased.
Prepayments The ending balance of prepayments during the reporting period was RMB 6,765,449.20, which was an increase from the opening balance of RMB 50,347.16.
13,337.60%, mainly due to the acquisition of the US$1 million in earnest money from three colleges in Westminster, USA.
Other receivables The ending balance of other receivables during the reporting period was RMB 2,841,220.34, which was an increase from the opening balance of RMB 1,531,272.72.
85.55%, mainly due to the increase in the daily operating rent deposits and the rental of teachers' apartments.
Other non-current assets The ending balance of other non-current assets during the reporting period was RMB 2,039,789.09, which was higher than the opening balance of RMB 219,354.18.
It is 829.91% long, mainly due to the payment of prepayments for fixed assets for teaching and procurement.
Deferred income tax assets The ending balance of deferred income tax assets during the reporting period was RMB 48,792,312.42, which was 34,318,813.99 compared with the opening balance.
The Yuan growth was 42.17%, which was mainly due to the increase in the amount of deductible losses caused by the current loss.


2. Main overseas assets

□Applicable √Not applicable

Third, the analysis of core competitiveness

Does the company need to comply with disclosure requirements for specific industries?

no

(1) Geographical advantage

Nationally, provinces, cities and regions have different ideas and inputs for education. As a political, cultural, international exchange and technological innovation center of China, Beijing has a high level of economic development and per capita disposable income, while the people are internationalizing. Education, study abroad, etc. have obvious preferences.

As the center of national education, Beijing has gathered the best universities in China, such as Tsinghua University, Peking University, Renmin University of China, and Beijing Normal University, as well as many high-quality primary and secondary schools such as Tsinghua High School, the National People's University High School, Haidian Foreign Language School, and Peking University. Educational Resources. A large number of high-quality teachers reserve provides a unique advantage for the company to develop the international education industry, expand teachers and develop teaching cooperation.

(II) Advantages of state assets

The development of international educational institutions requires the support of local governments, especially physical international schools, which must be rooted in the local area. International educational institutions face certain regional barriers when entering new markets.

The controlling shareholder of the company is controlled by Badachu. The actual controller is Haidian District State-owned Assets Supervision and Administration Commission, the background of state-owned assets and the rich educational resources from Haidian District of Beijing, which provides strong support for the company to develop international education business.

(3) Capital advantage

The core of the international education industry - the establishment of physical international schools requires a fixed environment with good environment, while international schools require a high level of teaching environment and hardware equipment as well as international level teachers. Therefore, there are certain financial barriers in the international education industry. On the other hand, in China's education market, the use of mergers and acquisitions means to quickly become stronger and bigger, and complete the industrial chain layout is one of the important ways to achieve rapid development.

Through the support of its listed company platform and the controlling shareholder's eight major divisions, the company will combine the self-sponsorship and cooperation with well-known educational institutions at home and abroad to jointly acquire and integrate high-quality educational resources, and rapidly realize the expansion of regional and industrial chains. Improve market share and brand influence, and enhance the comprehensive strength in the field of international education.

(4) Teacher advantage

Taking advantage of the company's background, we will cooperate with top schools at home and abroad to introduce high-end international education talents. At the same time, the company's internal education research institute is responsible for the selection of outstanding teachers, teacher resource reserves and teacher training. The Chinese and foreign teachers of various international schools have a good educational background and work experience. The company has also established an effective channel for the professional development and growth of teachers through the form of external communication and professional training for teachers.

(5) Advantages of first-class hardware facilities

Good hardware facilities are an important guarantee for the implementation of quality education services. The international education industry, especially the Entity International School, is designed to serve high-net-worth families above the middle class, requiring international schools to have a high level of teaching environment and hardware facilities.

The company has campus design that is in line with international standards, teaching building and teaching area planning with European and American schools, environmentally friendly building and ventilation systems, advanced teaching equipment, and rich Chinese and foreign materials and original books. The first-class campus environment and equipment facilities have become an important guarantee for providing high-quality and high-level international education services, and it is also one of the core competitiveness of the company based on the international education industry.

(6) Advantages of the brand characteristics of the sports center

Although the market demand of the international education industry is gradually increasing, the number of competitors is also increasing. Only by forming a differentiated competitive advantage can we have core competitiveness. With the increasing emphasis on quality education in our families, more parents hope that their children will be exposed to professional physical education and physical training from a young age, and participate in campus sports activities to fully explore the students' sports expertise and cultivate students to be strong, courageous, tolerant and team. Excellent quality such as cooperation.

The company's international schools have international-level sports centers, including baseball, football, tennis, fencing, ice hockey, golf and other professional venues. In sports teaching, the company cooperates exclusively with world-renowned professional sports organizations to make professional physical education a unique competitive advantage. At the same time, the training of youth sports programs of international professional standards will be carried out for the society, which will form a new profit growth point for the company.

Section IV Discussion and Analysis of Business Situation

I. Overview

The company vigorously promotes the business development of all sectors of the education industry, with the business model of “K12 Entity School + Sports, Art Training + Camp Education + Brand Export”. The main operations during the reporting period are as follows:

(1) Focus on K12 business and condense core competitiveness

During the reporting period, the company's Beijing Haidian Kewen School and Beijing Chaoyang Kewen School established a good reputation and reputation in the Beijing education market with first-class campus environment, teaching facilities and high-quality teachers and teaching quality.

1. Beijing Haidian Kewen School

The teaching team of Beijing Haidian Kewen School has top-notch teachers at home and abroad. The school employs world-class teachers and adopts the American teaching structure. In terms of teaching concepts and teaching methods, teachers can effectively combine Chinese and American courses and comprehensively enhance students' artistic style. Literacy and international vision.

(1) Curriculum and teaching system

The curriculum system of the Haidian Kewen School in Beijing Haidian is based on the practice and research of American and international courses in the Qinghua High School and its International Department. It combines the essence and content of the Chinese curriculum, taking into account the advantages of Chinese and Western teaching and the running of Kevin. The bilingual curriculum system developed by the concept. The curriculum system can not only meet the requirements of the National Curriculum Standards for Nine-Year Compulsory Education, but also meet the requirements of the US core curriculum system standards.

In the high school stage, Beijing Haidian Kewen School provides AP courses for students. The AP course at Haidian School has been certified by the American University Council as an AP course with international standards.

As a perfection and supplement to the “core curriculum”, Beijing Haidian Kewen School has opened an internationally integrated curriculum to improve the knowledge structure, broaden the horizons of students, enhance hands-on and innovation, and do their utmost to meet the growth needs of students.

In terms of teaching, bilingual teaching throughout the school is implemented, and a double-class teacher and tutor system is implemented throughout the school. In the primary school stage, there are two class teachers in the class. In the junior high school and high school, there are two tutors in both classes. Chinese and foreign teachers cooperate with each other to integrate the advantages of Chinese and Western education and jointly manage class and teaching affairs.

(2) Teacher configuration

Beijing Haidian Kewen School recruits and trains according to the teacher standards of Tsinghua High School Integrated International School. The teachers team has excellent academic level and rich teaching experience. Some teachers have also participated in the development and research of large-scale international curriculum projects, among which masters and The above qualifications are 70%, and more than 50% of the teachers have more than 2 professional degrees, and the average teaching age is over 11 years.

(3) Features sports and art education

Beijing Haidian Kevin School has sports venues and teaching hardware facilities of the world's top race specifications, such as the blue track of the IAAF Gold League, tennis courts built according to the standards of the China Diamond Stadium, golf courses, indoor/outdoor bars ( Base) Stadium and so on. In addition to the traditional physical education classes each week, it also offers a variety of courses such as baseball, tennis, fencing, golf, etc., and the formation of school teams, societies, and won numerous awards in various competitions.

2. Beijing Chaoyang Kewen School

Beijing Chaoyang Kewen School implements the full-study IB curriculum system in line with the national syllabus, including PYP, MYP and DP. Beijing Chaoyang Kewen School assigns teaching time and subject knowledge in all grades in various grades with national curriculum standards and IB teaching system, taking into account learning ability and innovative thinking. Beijing Chaoyang Kewen School became an IBDP Candidate School after one year of school, and will become a formal IB accredited school after two years of study.

PYP MYP DP

On the basis of satisfying the national education syllabus, bilingual teaching is based on the student's thinking development law and language cognition model, supplemented by subject practice activities. Elementary school

Different language teaching strategies are adopted in the middle and high school stages to help students establish a second language thinking system.

In terms of teacher allocation, the teachers selected by Beijing Chaoyang Kewen School have many years of IB or international teaching experience. The foreign teachers are all from English-speaking countries. Chinese teachers have bilingual teaching and international teaching experience. Some teachers have overseas study background. More than 50% of teachers have master's and doctoral degrees, and more than 60% of teachers have more than 10 years of coaching experience.

In terms of sports and art education, the school uses sports and art education to lead students' comprehensive quality training, and incorporates the arts curriculum into compulsory. Each student's art class is 8 lessons per week, which will cultivate students' character in all aspects. On the campus, there are various standard ice hockey competition venues, football fields, basketball courts, tennis courts, track and field stadiums, standard swimming pools and other sports venues, as well as theaters, small theaters, piano rooms, rehearsal halls, dance studios, etc. Through the compulsory courses of art and the training of special specialties, students are encouraged to be strong and temperamental, establish a sense of obeying rules, fair competition and teamwork, and have the spirit of being down-to-earth, courageous and indomitable.

“Life is education”, in order to cultivate students’ self-management ability and independent consciousness, while ensuring sufficient study and activity time, the school encourages and promotes mixed age “family”

"Homestay". First-line teachers at home and abroad live with students of different grades and classes, encourage students to communicate with each other across grades, and break the character of the one-child family.

Limitations, let the children experience the preciousness of friendship.

(2) Acquiring overseas famous schools to build a high-end art education platform

On June 21, 2018, Wenhua Xuexin, a wholly-owned subsidiary of the company, signed an Acquisition and Sale Agreement with Rider University. The agreement stipulated that Wenhua Xuexin intends to establish a subsidiary in Princeton, New Jersey, USA. Minster International LLC, which is the company's main body to acquire Westminster Choir College, Westminster Conservatory of Music and the Westminster School of Music. The relevant assets of Westminster Continuing Education and take over its operations.

The three colleges of Westminster are located in New Jersey, USA, and are part of the University of Reed, specializing in higher education in music and art. This acquisition is the beginning and key to the global layout of the company's education business, and plays an important role in enhancing the company's ability to enhance cross-cultural operations and enhance brand value and competitiveness. After the completion of the acquisition, the company's business chain will be extended to the higher education stage. The advantages of the company's international school art quality training will be further consolidated, the management level and sustainability will be further enhanced, and the high-end quality education brand image will be further highlighted.

(3) Proposed non-public offering of shares to extend the layout of the education industry

After the 12th meeting of the 4th Board of Directors and the 5th Extraordinary General Meeting of Shareholders in 2018, the company plans to plan non-public offering of shares. The number of non-public offerings does not exceed 20% of the total issued share capital before the issuance. The total amount of funds does not exceed RMB 1 billion (including the number). After deducting the issuance expenses, the net proceeds raised are intended to be invested in the “Adolescent High Quality Quality Education Platform Project”.

The implementation of the fund raising investment project “Adolescent High Quality Quality Education Platform Project” is conducive to the company grasping the strategic development period of the quality education market, utilizing the advantages of existing educational resources, extending the existing education industry layout, and the foundation of international school business. We will vigorously develop high-quality quality education business, promote brand output, management output, curriculum system output and collaborative development of internal and external education business, improve the marginal benefits of existing high-quality resources, enhance the company's profitability, and realize the company's "international education + quality". The strategic layout of the education of the first-class education platform.

(4) Implementing the strategy of talent introduction and reserve, making talents an internal driving force for enterprise development

Excellent faculty is the core soft power of the development of the education industry. The company has joined forces with top education institutions at home and abroad to introduce excellent international education management talents and teachers. At the same time, the company's education research institute focuses on the selection and training of the faculty team. Talent reserve to ensure the supply of outstanding talents in schools and related businesses in the education industry.

Second, the main business analysis

Overview

See “I. Overview” in “Discussion and Analysis of Business Situations”.

Year-on-year changes in major financial data

unit: yuan

The same period of the previous year, the year-on-year increase and decrease
Income for the reporting period is education
Operating income 89,382,042.19 231,266,909.27 -61.35% revenue, including bridge in the same period last year
Beam business data
Income for the reporting period is education
Operating costs 109,846,141.26 214,141,712.02 -48.70% income, including bridge in the same period last year
Beam business data
Mainly for the purpose of enrollment in this report period
Sales expenses 6,275,047.55 2,858,867.45 119.49% quarterly publicity expenditure is higher, and this
Market personnel in the reporting period compared with the previous year
Increased over the same period
Administrative expenses 29,351,786.55 36,856,251.87 -20.36%
Mainly due to the scale of borrowings in the current period
Financial expenses 9,154,024.61 16,663,090.12 -45.06% decreased in the same period last year, resulting in borrowing
Interest rate decline
Income tax expense -13,795,100.37 -2,000,869.41 -589.46% is mainly the current loss compared to the previous year
Increase over the same period
Cash flow from operating activities 49,228,891.98 17,729,918.34 177.66% mainly due to tuition fees during the reporting period
Net amount
Mainly due to Chaoyang in the same period last year
Cash flow from investment activities -180,099,309.06 -403,155,182.81 56.97% Kevin School construction period, payment
Net amount of construction
To
Cash flow from financing activities 166,673,259.13 420,561,448.23 -60.37% mainly due to the acquisition of borrowings in the current period
Net amount decreased compared with the previous year
Net increase in cash and cash equivalents 35,837,341.47 34,427,676.28 4.09%
Reload


Significant changes in the profit composition or source of profit of the company during the reporting period

√Applicable □Not applicable

Due to the divestiture of the original bridge business, the profit composition and profit source of this report period were all education business, which reduced the bridge business compared with the previous reporting period.

Operating income

unit: yuan

This report period increased or decreased year-on-year
Amount of operating income as a percentage of operating income
Total operating income 89,382,042.19 100% 231,266,909.27 100% -61.35%
sector
Education industry 81,882,042.19 91.61% 24,648,136.90 10.66% 232.20%
Bridge industry 203,981,471.48 88.20% -100.00%
Other industries 7,500,000.00 8.39% 2,637,300.89 1.14% 184.38%
Product
Tuition and fees income 76,346,291.26 85.42% 22,808,281.87 9.86% 234.73%
Training fee income 5,535,750.93 6.19% 1,839,855.03 0.80% 200.88%
Rental fee income 7,500,000.00 8.39% 100.00%
Bridge revenue 206,618,772.37 89.34% -100.00%
Sub-region
Within the territory 89,382,042.19 100.00% 227,492,516.52 98.37% -60.71%
Overseas 3,774,392.75 1.63% -100.00%


Industry, product or region that accounts for more than 10% of the company's operating income or operating profit

√Applicable □Not applicable

unit: yuan

Operating income, operating cost, gross profit margin, operating income, compared with the previous year, operating cost, compared with the previous year, the gross profit margin is the same as the previous year.
Increase or decrease during the same period
sector
Education industry 81,882,042.19 107,516,909.42 -31.31% 232.20% 365.32% -37.56%
Product
Tuition and Fees Income 76,346,291.26 100,923,785.42 -32.19% 234.73% 394.69% -42.74%
Sub-region
Within the territory 89,382,042.19 109,846,141.26 -22.90% -60.71% -48.06% -29.93%


In the case that the company's main business data statistics are adjusted during the reporting period, the company's main business data of the company's latest phase 1 adjusted by the end of the reporting period

□Applicable √Not applicable

Reasons for the related data changing by more than 30% year-on-year

√Applicable □Not applicable

During the reporting period, the education-related income and costs increased significantly year-on-year, mainly due to the significant increase in enrollment in the current period compared with the same period of the previous year.

Compared with the same period of last year, the revenue cost data of the bridge business was reduced, resulting in a year-on-year decline in domestic revenue costs.

Third, non-main business analysis

□Applicable √Not applicable

Analysis of assets and liabilities

1. Significant changes in assets

unit: yuan

At the end of the reporting period
Amount of total assets ratio Amount of total assets ratio Increase or decrease
Example
Monetary funds 165,757,917.4 5.21% 348,623,618.13 7.82% -2.61% no major changes
5
Accounts receivable 384,492.39 0.01% 262,242,962.05 5.88% -5.87% no major changes
Inventory 24,124.73 0.00% 569,623,319.07 12.78% -12.78% No major changes
Long-term equity investment 200,861.58 0.01% 0.01% no major changes
Fixed assets 1,368,922,675. 42.99% 306,730,615.26 6.88% 36.11% Mainly due to the transfer of construction projects in Jinyu.
41
Construction in progress 1,407,195,267. 31.57% -31.57% Mainly due to the completion of the project
41 points are reclassified to the cost of land.
Short-term loans 249,500,000.0 7.83% 288,500,000.00 6.47% 1.36% no major changes
0


2. Assets and liabilities measured at fair value

□Applicable √Not applicable

3. Restricted assets rights as of the end of the reporting period

Assets with restricted ownership or use rights

Project book value at the end of the period
Monetary funds - other monetary funds 52,645,923.58 margin
Fixed assets 1,345,429,564.60 Property certificates have not been completed


V. Analysis of investment status

1. Overall situation

√Applicable □Not applicable

Investment amount during the reporting period (yuan) The amount of investment (yuan) in the same period of last year
22,000,000.00 630,642,600.00 -96.51%


2. Significant equity investment obtained during the reporting period

□Applicable √Not applicable

3. Significant non-equity investment in progress during the reporting period

□Applicable √Not applicable

4. Financial assets measured at fair value

□Applicable √Not applicable

5. Securities investment

□Applicable √Not applicable

There was no securities investment during the reporting period.

6. Derivative investment

□Applicable √Not applicable

There was no derivative investment during the reporting period.

7. Use of raised funds

√Applicable □Not applicable

(1) Overall use of raised funds

√Applicable □Not applicable

Unit: 10,000 yuan

Total funds raised 172,525.75
Total funds raised during the reporting period 0.41
Total accumulated funds raised 173,734.03
Total funds raised for change of use during the reporting period 0
Total raised funds for cumulative change of use 0
The total amount of funds raised for cumulative use is 0.00%
Description of the overall use of raised funds
The use of funds raised by the company is as follows: (1) Before the above raised funds are in place, as of June 30, 2016, the company uses self-raised funds to accumulate funds raised.
After investing 486,906,700 yuan, the company has used the raised funds to replace the self-raised funds that have been invested in the raised funds investment projects by 19,987,600 yuan;
(2) In 2016, the project directly invested in the fund raised was RMB 101,537,100; (3) The project directly invested in the fundraising in 2017 was RMB 52,208,200; (4) 2018
The annual direct investment of funds raised is 0.41 million yuan. As of June 30, 2018, the company has used a total of 173,734,300 yuan of raised funds to raise funds for special accounts.
The net interest income is RMB 12,820,800. After deducting the accumulated use of raised funds and the purchase of wealth management products, the balance of the raised funds account on June 30, 2018
The total is 0 million yuan.


(2) Projects of fund-raising commitments

√Applicable □Not applicable

Unit: 10,000 yuan

Whether funds have been raised, adjusted after investment, as of the end of the period, until the end of the project, the project reached this reporting period, the project is feasible.
Committed investment projects and over-raised changes The total amount of committed investment funds During the reporting period, the cumulative investment investment schedule is scheduled to achieve the effectiveness of the implementation of whether or not
Capital investment target (including total amount (1) input amount amount (2) (3) = use status day benefit expected benefit major change
Sub-change) (2)/(1) Periodization
Committed investment project
High-end education industry investment project 2017
Project - Investment Subsidiary Text No 120,000 120,000 0.41 120,838.2 100.70% September 01 -3,104.18 No No
Kaixing Construction Chaoyang Kai Literature 9th
School project
Repayment of principal and interest of corporate bonds, no 52,525.75 52,525.75 52,895.74 100.70% 0Not applicable No
Supplementary liquidity
Subtotal of committed investment projects -- 172,525.7 172,525.7 0.41 173,734.0 -- -- -3,104.18 -- --
5 5 3
Super fundraising
No
Total -- 172,525.7 172,525.7 0.41 173,734.0 -- -- -3,104.18 -- --
5 5 3
Failure to meet the planned progress or pre-high-end education industry investment projects - the investment subsidiary Wenkaixing Construction International School Project has been available for use in September 2017 and
The situation and reasons for calculating the income are put into use, and the amount of the cost of the preparation period is large.
(divided into specific items)
The feasibility of the project is significant. The feasibility of the project has not changed significantly.
Change description
The amount of over-raised funds, use is not applicable
Way and use progress
Not applicable
Raised funds investment project
Change of location
Not applicable
Raised funds investment project
Adjustment of the way of application
The fundraising investment project is applicable first
Investment and replacement situation on July 11, 2016, the 18th meeting of the third board of directors of the company was reviewed and approved, and the company has already invested in the initial replacement of the funds raised.
The self-raised funds of fund-raising investment projects amounted to RMB 19,987,900, of which the replacement of high-end education industry investment projects – investment subsidiary Wen Kaixing
The construction of an international school project amounted to RMB 4,064,300, repaying the principal and interest of the company's bonds and replenishing the working capital of RMB 15,923,460.
The gold replacement amount does not include supplementary liquidity.
Use idle funds to raise funds temporarily
Supplementary liquidity
Project implementation has raised funds. Not applicable.
The amount and reason of the gold balance
Unused raised funds Not applicable
Use and whereabouts
Use and Disclosure of Raised Funds According to the “Regulations on the Supervision of Listed Companies No. 2 – Regulatory Requirements for the Management and Use of Raised Funds of Listed Companies”, etc.
There are no problems in the storage or use of funds raised or other funds that are not timely, true, accurate and complete, and there is no management of raised funds.
Situation Violation.


(3) Changes in the funds raised by the project

□Applicable √Not applicable

During the reporting period, the company did not have any changes in the funds raised.

(4) Situation of fundraising projects

Overview of fundraising projects Disclosure date Disclosure index


8. Major projects of non-raised funds investment

□Applicable √Not applicable

During the reporting period, the company had no major projects invested by non-raised funds.

6. Sale of major assets and equity

1. Sale of major assets

□Applicable √Not applicable

The company did not sell significant assets during the reporting period.

2. Sale of major equity

□Applicable √Not applicable

VII. Analysis of major holding companies

√Applicable □Not applicable

Major subsidiaries and shareholding companies that have a net profit impact of more than 10%

unit: yuan

Company Name Company Type Main Business Registered Capital Total Assets Net Assets Operating Income Operating Profit Net Profit
Education Investment Management 2,319,403,95 808,990,020. 22,755,648.2 -41,121,393. -31,041,762.
Wen Kaixing Subsidiary and Investment Advisory 49,461,952.0 5.16 64 2 04 72
Inquiry 0


Acquisition and disposal of subsidiaries during the reporting period

√Applicable □Not applicable

Company name The impact of the method of obtaining and disposing of subsidiaries during the reporting period on overall production operations and performance
Kevin Education US Co., Ltd. New establishment No actual operation.
Princeton Westminster International LLC has not been established.
Kevin School, Chaoyang District, Beijing, newly established is mainly engaged in academic education.
Hunan Kaiwen Xingyi Education Technology Co., Ltd. New establishment No actual operation.


Description of the main holding company

Eight, the structure of the company's controlled entities

□Applicable √Not applicable

IX. Estimation of business performance from January to September 2018

Expected operating results for January-September 2018: loss of performance

Performance loss

January-September 2018 net profit (ten thousand yuan) -7,500 to -6,500
Net profit attributable to shareholders of listed companies from January to September 2017 (10,000 -3,661.86
Yuan)
Reasons for changes in performance The main reason for the loss during the reporting period was the completion of self-built school projects, and the increase in depreciation and amortization resulted in
Loss.


X. Risks and countermeasures faced by the company

1. Risk of industry policy change

In September 2017, the implementation of the Law of the People's Republic of China on the Promotion of Private Education provided an institutional guarantee for the legal operation of private education institutions. However, from the review of the above-mentioned regulations, it is still necessary to fully implement the corresponding supporting laws, regulations and rules for private education. For a certain period of time, there is still some uncertainty in the future. The company will pay close attention to the changes in the K12 education industry policies and regulations, vigorously improve the teaching level, and reduce the risks caused by changes in industry policies and regulations.

2. Market competition risk

While the market demand in the international education industry has increased substantially, the number of private education schools has also increased. According to the data released in the "2016 National Statistical Report on Education Development" published by the Ministry of Education, there are 171,000 private schools of various types at all levels, an increase of 8,253 over the previous year; enrollment of 16,402,800, an increase of 33,700 over the previous year. There were 4,825,470 students enrolled in various types of education, an increase of 2,539,500 over the previous year. Although the total number of private schools has increased, the overall level of the school is uneven. The company's international schools are the first echelon in the industry, with a world-class teaching environment and hardware facilities. Through the overall cooperation with excellent educational institutions at home and abroad, it has formed a strong competitive advantage in the aspects of teaching system, teacher strength and brand effect.

The number of private schools is increasing, and the market demand for the international education industry is still growing substantially. The international education industry is a human resource-intensive industry. The operation of international courses requires a complete team. It is difficult for new entrants in the industry to engage in the international education industry without a mature team. Operational experience, teaching reputation and market influence determine the market position of educational companies. The company's Kevin International School cooperates with high-quality educational institutions at home and abroad to introduce a mature international education management team and a teaching system that is in line with international courses, and maintains a strong competitive advantage in the international education market.

3. Excellent teacher talent market competition

Teachers are one of the core competencies of the development of the education industry. At present, the overall supply of teachers in the market is sufficient, but teachers with deep international education background and rich international teaching experience have certain scarcity, and talent competition leads to an increase in teacher salary.

From a practical point of view, Kevin School is in a favorable position in the market for teacher recruitment, which benefits from the good teaching facilities, teaching environment, educational philosophy and teacher training system of Kevin School. At the same time, Kevin’s schooling conditions and the teacher’s salary level corresponding to the tuition fees are highly recognized by the market. The company's Education Research Institute provides a stable high-level education faculty team for each school.

4. Other risks

As the company's assets in education and related industries continue to expand, different business modules are covered within the system. The company will dynamically optimize the organizational structure and strengthen the allocation of resources according to the scale of business, and start the project post-investment management from the aspects of corporate culture integration, management optimization, management system and superior resource sharing, strategic deep extension, etc., effectively reducing the scale expansion. Risk, speed up synergies.

Section 5 Important matters

I. Relevant information of the annual general meeting of shareholders and the extraordinary general meeting of shareholders held during the reporting period

1. The general meeting of shareholders during the reporting period

Session Session Type of Meeting Investor Participation Proportion Date of Conscription Disclosure Date Disclosure Index
Juchao Information Network "2018
The first temporary extraordinary shareholders meeting in 2018 46.31% January 12, 2018 January 13, 2018 The first temporary shareholders
General Meeting of Shareholders
Report number: 2018-002)
Juchao Information Network 2017
2017 Annual General Shareholders Annual General Meeting of Shareholders 39.98% May 08, 2018 May 18, 2018 Annual General Meeting of Shareholders
Announcement of the Conference (Announcement No.:
2018-020)
Juchao Information Network "2018
The second temporary extraordinary shareholders meeting in 2018 46.02% May 24, 2018 May 25, 2018 Second extraordinary shareholders
General Meeting of Shareholders
Report number: 2018-025)
Juchao Information Network "2018
Third Provisional Shareholders' Meeting in 2018 44.04% June 27, 2018 June 28, 2018 Third Interim Shareholders
General Meeting of Shareholders
Report number: 2018-048)


2. The preferred stockholders whose voting rights are restored request the convening of an extraordinary general meeting

□Applicable √Not applicable

2. Profit distribution or capital reserve fund transfer to share capital plan in the reporting period

□Applicable √Not applicable

The company plans not to distribute cash dividends for half a year, not to send bonus shares, and not to convert public reserves into share capital.

3. The actual controllers, shareholders, related parties, purchasers and companies of the company have fulfilled their commitments during the reporting period and

Commitments that have not been fulfilled due to the end of the reporting period

□Applicable √Not applicable

During the reporting period, the company's actual controllers, shareholders, related parties, purchasers and companies have fulfilled their commitments during the reporting period and exceeded the end of the reporting period.

Commitments that have not been fulfilled during the period.

IV. Appointment and dismissal of accounting firms

Is the semi-annual financial report audited?

□Yes, no

The company's semiannual report has not been audited.

V. Explanation of the Board of Directors and the Board of Supervisors on the “non-standard audit report” of the accounting firm during the reporting period

□Applicable √Not applicable

6. Explanation of the Board of Directors on the relevant situation of the “non-standard audit report” in the previous year

□Applicable √Not applicable

7. Bankruptcy and reorganization related matters

□Applicable √Not applicable

The company did not have any bankruptcy reorganization related matters during the reporting period.

Eight, litigation matters

Major lawsuit and arbitration

√Applicable □Not applicable

Litigation (arbitration) basic situation Amount involved (10,000 Whether to form an expected lawsuit (arbitration) Litigation (arbitration) trial Litigation (arbitration) judgment Disclosure date Disclosure index
Condition) Debt Progress Results and Impacts Implementation
June 6, 2013, preparations before the trial
The company and the Yinzhou phase of Guangxi. according to
Xijiang Siqiao Project Company and Zhongjing
Investment Management Limited
Division ("Project Company")<产权交
    签订《梧州市西江                           易合同>It
Four Bridges Main Bridge and Approach Bridge Supplementary Agreement, Juchao Information Network
Engineering steel structure manufacturing
Installation part construction 14,199.35 No Steel structure business None None June 2015 In litigation matters
After the same (technical cooperation), the announcement with the bridge on the 20th (public
And "Contract Supplementary Steel Structure Assets"
After the discussion, the company is related to the business and related to the business 2015-070)
Completion of the pending part of the performance
Contract and get the lawsuit, leading to the public
Company's approval; the project department suffers from any
The company is also committed to paying actual damage or
The corresponding amount. Deadline
Before, the project company did not show up, by Xinzhong
Payment by contract. Therefore, the company has a commitment to the company.
Prosecuting Hongyu Construction
Group company, project company. Therefore, there is no
And its shareholder Xu Yizhen, the lawsuit will not
Xu Zhigang, Liu Feng request to the company
Lift the relevant contract and make a substantial impact
Advocate related project funds, ringing.
Liquidated damages and related fees
Use equal loss.
As of this report
Disclosure day, public
Secretary has been with China
Road and bridge construction
Limited company sign
Reconciliation Association
Discussion. Agreement is detailed in the company
Set the parties and the phase
Third parties are
May not be involved in July 2016
Steel structure disclosed on the 6th
Work and Transportation Association
Negotiating to the other party's announcement, 2016
Company and Chongqing Donggang Zhang Any Rights July 8,
The shipbuilding industry has limited public interest. Both sides will be in July 2016
Division, Zhongjiao Road and Bridge Construction Fengdu Second Bridge Box 22, 2016
Ltd., Huicheng Trade Liang contract triggered July, 2016 August 1
Yitaizhou Co., Ltd. 15,711.36 No related lawsuits None None 06 days disclosed
And Shanghai Kanglong Building Behavior and Prosecution Progress
Engineering Co., Ltd. and other related matters, 2017
The lawsuit between the reciprocal acts of each other August 29
Not to be held accountable for disclosure
Responsible for each other
Reimbursement of fees. Public Announcement, 2018
Division and Chongqing East July 26
Port shipbuilding industry
Proceedings of the company
Litigation: Chongqing Announcement.
Nan'an District People
Court decision
Company to Chongqing
Donggang Shipbuilding
Industry Ltd.
Paying for rent
Lease fee
Secretary mentioned
v. Chongqing
Fifth intermediate
Civil court
South Bank of Chongqing
District People's Court
First instance judgment
Correlation basis
This fact is not
Clear and violate
Legal procedure,
Ruling
Qinghai Nan'an District
People's court
Trial. According to the public
Si and Zhongjingjian
Signed
"<产权交
                                               易合同>It
Supplementary Agreement,
Selling bridge
Steel structure business
After, with the bridge
Steel structure assets
And business related
Unresolved
Litigation
Secretary suffers from any
Actual damage or
Bear the cost
Out of
Thai company
Responsibility
Ren. Therefore, there is no
The lawsuit will not
Caused by the company
Substantial shadow
ring.


Other litigation matters

□Applicable √Not applicable

Nine, the media questioned the situation

□Applicable √Not applicable

During the reporting period, the company did not have any media questions.

X. Punishment and rectification

√Applicable □Not applicable

Name/Name Type Reason Investigation Type of Punishment Conclusion (if any) Disclosure Date Disclosure Index
January 5, 2018,
Beijing Municipal Planning and Country
Soil Resources Committee
Subsidiary company
Kaixing in Chaoyang District Gold
Beijing Wenkaixing Education
Investment limited liability public Other Kevin International School Others Corrected
Project construction project
(Tsinghua Middle School Kevin
International School Project)
Existence due to construction drawings
Unauthorized construction
Behavior, with 20
A fine of 10,000 yuan.


Rectification

√Applicable □Not applicable

The relevant construction drawings have been reviewed.

XI. The integrity of the company and its controlling shareholder and actual controller

□Applicable √Not applicable

12. Implementation of the company's equity incentive plan, employee stock ownership plan or other employee incentives

□Applicable √Not applicable

During the reporting period, the company did not have an equity incentive plan, employee stock ownership plan or other employee incentives and their implementation.

13. Significant related party transactions

1. Related party transactions related to daily operations

√Applicable □Not applicable

Correlation associated with the same type of approved, whether it is super-associated
Associated Link Related Linked Transaction Related Transactions Related Transaction Amount Transaction Gold Transaction Amount Approved Easy Settlement Similar Disclosure Date Disclosure
Yi Fang Yi type content pricing principle easy price (million yuan) amount of the ratio (10,000 yuan method trading market index
Example yuan) price
Beijing Wan Holdings Shares to related properties Reference market 806.10 806.1 100.00 806.1 No Bank transfer 8.061 million 2017
Jiaxin East Director Purchase Fee Price Negotiation % Account or Ticket Yuan February 16 Information
Industry Management Zhang Jingming Service Confirmation
Limited liability
Company Corporate 2017
New year
Increase
Joint
Easy
Announcement
Public
Compilation
number:
2017-0
twenty three),
"turn off
Yu Guan
Joint
Easy
Announcement
Public
Compilation
number:
2017-1
28)
Giant tide
News
Net
Pre-pre
New to the association
Beijing State Holding Public Leasing Reference Market Bank Transfer 2016 Increase
Kexinye Sizigong Housing Construction Lease Price Negotiation 281.25 281.25 100.00 281.25 No Account or ticket 281.25 November 17 joint
Investment has a construction and land fee to determine the % settlement according to the million yuan
Limited company use announcement
Right
Compilation
number:
2016-0
81)
Total -- -- 1,087.35 -- 1,087.35 -- -- -- -- --
Details of the return of large sales of goods Not applicable
Daily associations that will occur in the current period by category
The total amount of the transaction is expected to be reported in the report.
Actual performance during the period (if any)
The difference between the transaction price and the market reference price is not applicable.
Big reason (if applicable)


2. Related transactions in the acquisition or sale of assets or equity

□Applicable √Not applicable

During the reporting period, the company did not have any related party transactions or equity acquisitions or sales.

3. Related party transactions for joint external investment

□Applicable √Not applicable

During the reporting period, the company did not have any related party transactions for joint external investment.

4. Related creditor's rights and debts

√Applicable □Not applicable

Is there a non-operating related credit and debt relationship?

√ Yes □ No

Receivables from related parties:

Whether there is a non-period balance, the current period of new gold, the current period, the current period, the interest, the ending balance
Related party Association relationship Reason for formation Operating capital (ten thousand yuan) Amount (ten thousand yuan) amount (ten thousand yuan) Interest rate (ten thousand yuan) (ten thousand yuan)
Occupy


Payable to related party debts:

Related party Relationships Reasons for the opening balance (10,000 yuan, new period, current period, repayment, interest rate, interest for the current period (end of 10,000 yuan)
Yuan) Amount (ten thousand yuan) Amount (ten thousand yuan) Yuan) Yuan)
Badachu Holdings
Group Limited Public Controlling Shareholders Borrowing 0 19,000 0 4.35% 309.97 19,000
Secretary


5. Other major related party transactions

√Applicable □Not applicable

After deliberation and approval at the twelfth meeting of the fourth board of directors of the company and the eleventh meeting of the fourth board of supervisors, the company plans to issue non-public shares, and the number of shares issued shall not exceed 20% of the total share capital before the issuance, that is, no more than 99,713,397 shares ( Including the number), and the total amount of funds raised does not exceed RMB 1 billion (including the number), and will be used for the “Adolescent High Quality Quality Education Platform Project” after deducting the issuance fee. As of the disclosure date of this report, the company has held the 5th Extraordinary General Meeting of Shareholders in 2018 to deliberate and approve the relevant proposals such as the “Public Issuance of A Shares Stock Plan”.

Major related party transactions, interim report disclosure website related inquiry

Temporary Announcement Name Temporary Announcement Disclosure Date Temporary Announcement Disclosure Website Name


XIV. Major contracts and their performance

1. Cases of custody, contracting and leasing

(1) Trusteeship

□Applicable √Not applicable

There was no custody during the reporting period.

(2) Contracting situation

□Applicable √Not applicable

There was no contracting situation during the reporting period.

(3) Lease situation

√Applicable □Not applicable

Lease description

Signed a lease agreement with Beijing Yaweizhiguang Investment Management Co., Ltd., and leased the subject matter as B1 and B2 located in the research and development building of Kaiwen School, Beimafang Village, Jinyu Township, Chaoyang District, Beijing.

Building.

Projects that bring profits and losses to the company to more than 10% of the company's total profit during the reporting period

□Applicable √Not applicable

During the reporting period, the company did not have any leases that brought the company's profit and loss to more than 10% of the company's total profit during the reporting period.

2. Major guarantee

√Applicable □Not applicable

(1) Guarantee situation

Unit: 10,000 yuan

External guarantee of the company (excluding guarantees for subsidiaries)
Guarantee amount phase Actual occurrence date Whether it is performed
Name of the guarantee object. Disclosure of the announcement. The amount of the guarantee (the date of signing the agreement). The actual amount of the guarantee. The type of guarantee. The guarantee period is completed.
Date
Jiangsu Xinzhongtai Bridge 2017 08 Joint responsibility project
Steel Construction Engineering Limited 10th 30,107.45 30,107.45 Certificate Implementation Time No Yes
Secretary
Jiangsu Xinzhongtai Bridge 2017 10 Joint Liability Project
Steel Structure Engineering Limited January 18, 61,414.8 61,414.8 Certificate Implementation Time No Yes
Secretary
The amount of external guarantees approved during the reporting period 0 The actual external guarantee occurred during the reporting period 0
Total (A1) Total amount (A2)
The amount of external guarantees approved at the end of the reporting period 91,522.25 The actual external guarantee balance at the end of the reporting period 91,522.25
Total (A3) Total (A4)
Company's guarantee for subsidiaries
Guarantee amount Actual date of occurrence Whether it is performed
Name of the guarantee object Related announcements Guarantee amount (the date of signing the agreement) Actual guarantee amount Guarantee type Guarantee period Completion Joint guarantee
Date of disclosure
From the loan
Beijing Wenkaixing Education 2018 06 June 2018 29 under the joint responsibility
Investment limited liability public month 22 day 130,000 days certificate loan term period no
From the next day
Two years
During the reporting period, the amount of guarantees for subsidiaries was approved. 130,000 guarantees for subsidiaries during the reporting period.
Total (B1) Total amount of occurrence (B2)
At the end of the reporting period, the approved subsidiaries are responsible for the actual guarantee of the subsidiaries at the end of the 130,000 reporting period.
Total amount of coverage (B3) Total balance (B4)
Subsidiary guarantees for subsidiaries
Guarantee amount Actual date of occurrence Whether it is performed
Name of the guarantee object Related announcements Guarantee amount (the date of signing the agreement) Actual guarantee amount Guarantee type Guarantee period Completion Joint guarantee
Date of disclosure
Total company guarantee (ie the total of the top three items)
The total amount of guarantees approved during the reporting period was 130,000. The actual amount of guarantees during the reporting period was 0.
(A1+B1+C1) (A2+B2+C2)
The amount of guarantees approved at the end of the reporting period is 221,522.25 The total amount of actual guarantees at the end of the reporting period is 91,522.25
Meter (A3+B3+C3) (A4+B4+C4)
The actual total amount of guarantee (ie A4+B4+C4) accounts for 42.52% of the company's net assets.
among them:


Detailed description of the use of composite guarantee

The company held the 13th meeting of the 4th Board of Directors and the 4th Extraordinary General Meeting of Shareholders in 2018 to deliberate and approve the “Proposal on Providing Guarantee for the Application of Comprehensive Bank Credit for Whole-Funded Subsidiaries”, which is a wholly-owned subsidiary of Beijing Wenkaixing. Education Investment Co., Ltd. provides joint liability guarantee to the comprehensive credit of the 1.3 billion yuan of the Beijing Haidian Sub-branch of Industrial and Commercial Bank of China Limited. At the same time, Beijing Wenhua Xuexin Education Investment Co., Ltd., a wholly-owned subsidiary of the company, provided pledge guarantees with its 100% equity interest in Beijing Wenkaixing Education Investment Co., Ltd.

(2) Non-compliance with external guarantees

□Applicable √Not applicable

During the reporting period, the company did not violate the external guarantees.

3. Other major contracts

□Applicable √Not applicable

There were no other major contracts during the reporting period.

XV. Social Responsibility

1. Major environmental problems

Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental protection department

no

Listed companies and subsidiaries are not key pollutant discharge units announced by the environmental protection department.

2. Fulfilling the social responsibility of precise poverty alleviation

The company reported that it has not carried out accurate poverty alleviation work for the first time in the first half of the year, and there is no follow-up precision poverty alleviation plan.

16. Description of other major events

□Applicable √Not applicable

There are no other major issues that need to be explained during the reporting period.

XVII. Major events of the company's subsidiaries

√Applicable □Not applicable

On June 21, 2018, Wenhua Xuexin, a wholly-owned subsidiary of the company, signed an Acquisition and Sale Agreement with Rider University. The agreement stipulated that Wenhua Xuexin intends to establish a subsidiary in Princeton, New Jersey, USA. Minster International LLC, which is the company's main body to acquire Westminster Choir College, Westminster Conservatory of Music and the Westminster School of Music. The relevant assets of Westminster Continuing Education (hereinafter collectively referred to as "three colleges") and take over their operations. The transaction price is 40 million US dollars (US$40,000,000). The company held the 13th meeting of the 4th Board of Directors on June 21, 2018 to deliberate and approve the Proposal on Establishing Subsidiaries to Acquire Assets Overseas, and disclosed on June 22, 2018 on Juchao Information Network. Announcement on the Establishment of Subsidiaries to Acquire Assets Overseas (Announcement No.: 2018-045).

Section VI Changes in Shares and Shareholders

I. Changes in shares

1. Changes in shares

Unit: Stock

Before this change, this change is increased or decreased (+,-) after this change
Quantity Proportion New shares issued Shares to provide other funds Subtotal Quantity Proportion
Stock
1. Shares subject to restrictions on sale 188,084,4 37.72% -512,200 -512,200 187,572,2 37.62%
37 37
2. State-owned legal person holding shares 150,053,5 30.10% 150,053,5 30.10%
90 90
3. Other domestic capital holdings 38,030,84 7.62% -512,200 -512,200 37,518,64 7.52%
7 7
Among them: domestic legal person holding shares 26,795,28 5.37% 26,795,28 5.37%
4 4
Domestic natural persons holding shares 11,235,56 2.25% -512,200 -512,200 10,723,36 2.15%
3 3
2. Unrestricted shares 310,482,5 62.28% 512,200 512,200 310,994,7 62.38%
50 50
1. RMB ordinary shares 310,482,5 62.28% 512,200 512,200 310,994,7 62.38%
50 50
Total number of shares 498,566,9 100.00% 0 0 498,566,9 100.00%
87 87


Reasons for changes in shares

√Applicable □Not applicable

On November 27, 2017, Mr. Yu Zheng resigned as a director and senior manager of the company. Mr. Bao Zheng resigned as a supervisor of the company. Mr. Chen Hongbo resigned as a senior manager of the company and held 100% of the company's shares within six months after leaving the company according to regulations. Locked; the number of shares transferred each year after half a year does not exceed 25% of the total number of shares held by the company; the former senior management of the company Zhu Xiao and the former director accounted for the release of the shares of the company held by Shishi.

Approval of changes in shares

□Applicable √Not applicable

Transfer of share changes

□Applicable √Not applicable

The effect of share changes on financial indicators such as the basic earnings per share and diluted earnings per share for the most recent year and the latest period, and net assets per share attributable to the company’s common shareholders

□Applicable √Not applicable

Other content that the company deems necessary or required by the securities regulator

□Applicable √Not applicable

2. Changes in restricted shares

√Applicable □Not applicable

Unit: Stock

Name of Shareholders The number of shares restricted at the beginning of the period The release of restricted shares in the current period Increase the number of restricted shares in the current period. Number of restricted shares at the end of the period. Reason for the restriction.
counting
Mr. Yu Zheng in 2017
Resignation on November 27th
Go to company directors and high
Level manager
Service, according to regulations
Yu Zheng 2,000 500 1,500 held in the first half of the year -
Company shares
100% locked; half a year
Transferred annually
The shares do not exceed
Total number of company shares
25%.
Mr. Bao Yu
November 27, 2017
Resigning to the company's supervisor
Position, in accordance with regulations
Within six months after leaving the company
炯杲 2,000 500 1,500 shares in the company -
100% locked; half a year
Transferred annually
The shares do not exceed
Total number of company shares
25%.
Mr. Chen Hongbo
November 27, 2017
Resigned to the company senior
Managerial duties,
After leaving the company according to regulations
Chen Hongbo 3,000 750 2,250 holds the company within half a year -
100% stake in the lock
Set; after half a year
Annual transferred shares
No more than holding company
Total number of shares
25%.
Zhu Xiao 505,000 505,000 0 Former Senior Manager -
member
James Shi, 5,450 5,450 0 former director -
Total 517,450 512,200 0 5,250 -- --


3. Securities issuance and listing

During the reporting period, the company did not have securities issuance and listing.

Second, the number of shareholders of the company and shareholdings

Unit: Stock

Total number of common shareholders at the end of the reporting period 12,336 Preferred shares recovered from voting rights at the end of the reporting period 0
Total number of shareholders (if any) (see Note 8)
Shareholdings of common shareholders or top 10 ordinary shareholders holding more than 5% of shares
At the end of the reporting period, the company held a limited holding of unlimited pledge or freezing during the reporting period.
Name of shareholder Nature of shareholder Shareholding ratio Increased or decreased holdings of sales conditions
Number of shares in common situation Number of common shares Number of common shares Number of shares Status
Quantity
Badachu Holdings Group State-owned legal person 32.60% 162,547,9 increase 150,053,5 12,494,364 pledge 53,000,000
Group Limited 54 2,541,861 90
Zhejiang Huike Assets Domestic non-state legal person 6.03% 30,060,00 30,060,000 pledge 28,557,000
Management Limited 0
Huaxuan (Shanghai) shares 26,795,28 26,795,28
The right investment fund has a domestic non-state legal person 5.37% 4 4 pledge 26,795,200
Limited company
Deqing Zhirong Investment 15,308,89 increase
Management partnership Domestic non-state legal person 3.07% 0 12,170,300 15,308,890
(Limited Partnership)
Jiangsu Hengyuan Real Estate 15,028,33
Production and Development Co., Ltd. Non-state-owned legal person within the territory 3.01% 4 15,028,334
Secretary
Zheng Yaping Natural person in the territory 2.15% 10,718,11 10,718,11
3 3
Jiangsu Huanyu Investment Domestic non-state legal person 2.09% 10,417,62 reduction 10,417,620
Development Limited 0 682,851
Beijing Jinglu Xingye Domestic non-state legal person 1.83% 9,100,350 reduction 9,100,350
Investment Co., Ltd. 408,800
China Construction Bank Domestic non-state legal person 1.14% 5,700,000 reduction 5,700,000
Company Limited 900,021
-Hua Shang Sheng Shicheng
Long hybrid securities
Investment fund
Shi Xiaoyan Natural person in the territory 1.06% 5,280,000 5,280,000
The above shareholder relationship or concerted action is not applicable
Description
Top 10 shareholders of unrestricted ordinary shares held
Type of shares
Name of Shareholders Holding the number of unrestricted ordinary shares at the end of the reporting period
Type of shares
Zhejiang Huike Asset Management Co., Ltd. 30,060,000 RMB common stock 30,060,000
Deqing Zhirong Investment Management Partnership (limited 15,308,890 RMB common stock 15,308,890
Partnership)
Jiangsu Hengyuan Real Estate Development Co., Ltd. 15,028,334 RMB common stock 15,028,334
Badachu Holdings Group Co., Ltd. 12,494,364 RMB ordinary shares 12,494,364
Jiangsu Huanyu Investment Development Co., Ltd. 10,417,620 RMB ordinary shares 10,417,620
Beijing Jinglu Industrial Investment Co., Ltd. 9,100,350 RMB common stock 9,100,350
China Construction Bank Corporation - China 5,700,000 RMB ordinary shares 5,700,000
Shang Shengshi Growth Hybrid Securities Investment Fund
Shi Xiaoyan 5,280,000 RMB ordinary shares 5,280,000
China Resources SZITIC Trust Co., Ltd. - Xinghe 1 5,101,709 RMB ordinary shares 5,101,709
Collective fund trust plan
Industrial and Commercial Bank of China - BOC China Select 4,941,860 RMB Common Shares 4,941,860
Combined open-end securities investment fund
Top 10 unrestricted ordinary shareholders
Between, and the top 10 unrestricted conditions are normal.
Between stockholders and the top 10 common stockholders
Description of the relationship or concerted action


Whether the top 10 ordinary shareholders of the company and the top 10 unrestricted ordinary shareholders have agreed to repurchase transactions during the reporting period.

□Yes, no

The top 10 ordinary shareholders of the company and the top 10 unrestricted ordinary shareholders did not make the agreed purchase repurchase transactions during the reporting period.

Third, the change of controlling shareholders or actual controllers

Controlling shareholder changes during the reporting period

□Applicable √Not applicable

The company's controlling shareholder has not changed during the reporting period.

Actual controller changes during the reporting period

□Applicable √Not applicable

The actual controller of the company did not change during the reporting period.

Section VII. Preference shares

□Applicable √Not applicable

There were no preferred shares in the company during the reporting period.

Section VIII Directors, Supervisors and Senior Management

I. Changes in shareholdings of directors, supervisors and senior management personnel

□Applicable √Not applicable

The company's directors, supervisors and senior management personnel did not change their shareholdings during the reporting period. For details, please refer to the 2017 annual report.

2. Changes in the company's directors, supervisors and senior management personnel

√Applicable □Not applicable

Name Position of job Type Date Reason
Dong Shunlai Director Retired from work change on June 08, 2018
Day
Chen Nangang Independent Director Retired from work change on June 08, 2018
Day


Section IX Corporate Bond Related Information

Whether the company has a public offering and is listed on the stock exchange, and the semi-annual report approves the corporate bonds that have not expired or expired and are not fully paid on the date of approval.

no

Section X Financial Report

I. Audit report

Is the semi-annual report audited?

□Yes, no

The semi-annual financial report of the company has not been audited.

Second, the financial statements

The unit of the statement in the financial notes is: RMB

1. Consolidated balance sheet

Prepared by: Beijing Kaiwen Dexin Education Technology Co., Ltd.

unit: yuan

Project ending balance
Current assets:
Monetary funds 165,757,917.45 165,066,272.56
Settlement provisions
Withdrawal of funds
Measured at fair value and included in
Financial assets of profit or loss
Derivative financial assets
bill receivable
Accounts receivable 384,492.39 129,115.44
Prepayments 6,765,449.20 50,347.16
Premium receivable
Receivables
Receivable contract reserve
Interest receivable 30,915.00 39,474.88
Dividend receivable
Other receivables 2,841,220.34 1,531,272.72
Buy back resale financial assets
Inventory 24,124.73 59,074.12
Assets held for sale
Non-current assets due within one year
Other current assets 155,540,802.09 143,758,366.95
Total current assets 331,344,921.20 310,633,923.83
Non-current assets:
Loans and advances
Available for sale financial assets
Held to maturity investments
Long-term receivables
Long-term equity investment 200,861.58 200,861.58
Investment real estate
Fixed assets 1,368,922,675.41 1,387,302,286.83
Construction in progress
Engineer material
Fixed assets cleanup
Productive biological assets
Oil and gas assets
Intangible assets 946,415,701.75 956,246,003.32
Development expenditure
Goodwill 214,678,524.17 214,678,524.17
Long-term deferred expenses 272,075,828.04 241,433,794.20
Deferred income tax assets 48,792,312.42 34,318,813.99
Other non-current assets 2,039,789.09 219,354.18
Total non-current assets 2,853,125,692.46 2,834,399,638.27
Total assets 3,184,470,613.66 3,145,033,562.10
Current liabilities:
Short-term loans 249,500,000.00 280,000,000.00
Borrowing from the central bank
Deposits and deposits
Unpacking funds
Measured at fair value and included in
Financial liabilities for profit or loss
Derivative financial liabilities
Bills payable 74,831,255.00
Accounts payable 302,690,107.62 409,007,621.48
Advance receipts 220,484,127.66 95,340,297.29
Selling repurchased financial assets
Fees and commissions
Employee benefits payable 12,632,181.23 12,898,519.42
Taxes payable 2,592,198.56 31,020,435.84
Interest payable 340,695.62 417,956.46
Dividend payable 511,924.22 425,485.61
Other payables 234,858,563.69 29,301,990.88
Coping with reinsurance
Insurance contract reserve
Agent trading securities
Agency underwriting securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 2,645,675.26 735,770.47
Total current liabilities 1,026,255,473.86 933,979,332.45
Non-current liabilities:
Long term loan
Bonds payable
Of which: preferred stock
Perpetual bond
Long-term payables
Long-term payroll pay
Special payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 1,026,255,473.86 933,979,332.45
Owners' equity:
Share capital 498,566,987.00 498,566,987.00
Other equity instruments
Of which: preferred stock
Perpetual bond
Capital reserve 1,669,248,455.31 1,668,631,594.92
Less: treasury shares
Other comprehensive income -395,451.66 -414,690.95
Special reserves
Surplus reserve 27,579,031.87 27,579,031.87
general risk preparation
Undistributed profit -42,415,566.45 9,263,578.49
Total owner's equity attributable to the parent company 2,152,583,456.07 2,203,626,501.33
Minority shareholders' equity 5,631,683.73 7,427,728.32
Total owner's equity 2,158,215,139.80 2,211,054,229.65
Total liabilities and owner's equity 3,184,470,613.66 3,145,033,562.10


Legal representative: Xu Guangyu Person in charge of accounting work: Dong Qi Person in charge of accounting department: Dong Qi

2. Parent company balance sheet

unit: yuan

Project ending balance
Current assets:
Monetary funds 78,241,761.27 111,827,438.31
Measured at fair value and included in
Financial assets of profit or loss
Derivative financial assets
bill receivable
accounts receivable
Prepayments
Interest receivable
Dividend receivable
Other receivables 2,459,807,696.88 2,566,097,696.88
Inventory
Assets held for sale
Non-current assets due within one year
Other current assets 15,914,565.91 22,785,178.34
Total current assets 2,553,964,024.06 2,700,710,313.53
Non-current assets:
Available for sale financial assets
Held to maturity investments
Long-term receivables
Long-term equity investment 19,000,000.00 9,000,000.00
Investment real estate
Fixed assets
Construction in progress
Engineer material
Fixed assets cleanup
Productive biological assets
Oil and gas assets
Intangible assets
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred income tax assets 7,836,851.83 5,814,120.49
Other non-current assets
Total non-current assets 26,836,851.83 14,814,120.49
Total assets 2,580,800,875.89 2,715,524,434.02
Current liabilities:
Short-term loans 249,000,000.00 279,500,000.00
Measured at fair value and included in
Financial liabilities for profit or loss
Derivative financial liabilities
Bills payable 74,831,255.00
Accounts payable 425,000.01
Advance payment
Payroll payable
Taxes payable 1,562,640.51 27,783,572.58
Interest payable 333,983.33 417,291.88
Dividend payable 425,485.61 425,485.61
Other payables 3,145,122.33 211,677.25
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 254,892,231.79 383,169,282.32
Non-current liabilities:
Long term loan
Bonds payable
Of which: preferred stock
Perpetual bond
Long-term payables
Long-term payroll pay
Special payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 254,892,231.79 383,169,282.32
Owners' equity:
Share capital 498,566,987.00 498,566,987.00
Other equity instruments
Of which: preferred stock
Perpetual bond
Capital reserve 1,722,179,000.80 1,722,179,000.80
Less: treasury shares
Other comprehensive income
Special reserves
Surplus reserve 27,579,031.87 27,579,031.87
Undistributed profit 77,583,624.43 84,030,132.03
Total owner's equity 2,325,908,644.10 2,332,355,151.70
Total liabilities and owner's equity 2,580,800,875.89 2,715,524,434.02


3. Consolidated income statement

unit: yuan

The amount of the current period
I. Total operating income 89,382,042.19 231,266,909.27
Of which: operating income 89,382,042.19 231,266,909.27
Interest income
Earned premium
Fee and commission income
Second, the total operating cost 155,014,288.03 264,987,464.03
Of which: operating costs 109,846,141.26 214,141,712.02
Interest expense
Fee and commission expenses
Withdrawal
Net loss of expenditure
Withdrawal of insurance contract reserve net
dividend payment policy
Reinsurance costs
Taxes and surcharges 309,203.23 1,999,062.99
Sales expenses 6,275,047.55 2,858,867.45
Administrative expenses 29,351,786.55 36,856,251.87
Financial expenses 9,154,024.61 16,663,090.12
Asset impairment losses 78,084.83 -7,531,520.42
Plus: gains from changes in fair value
"-" is filled in)
Investment income (loss is filled by "-" 153,195.12 5,386,023.47
Column)
Of which: for joint ventures and joint ventures
Investment income
Exchange gains (losses are marked with "-")
Asset disposal income (loss is filled in with "-"
Column)
Other income 595,900.00
Third, operating profit (loss is marked with "-") -64,883,150.72 -28,334,531.29
Plus: Non-operating income 0.20 204,208.73
Less: Non-operating expenses 200,000.01 185,442.01
4. Total profit (the total loss is marked with "-") -65,083,150.53 -28,315,764.57
Less: Income tax expense -13,795,100.37 -2,000,869.41
V. Net profit (net loss is marked with "-") -51,288,050.16 -26,314,895.16
(1) Net profit from continuing operations (net loss is -51,288,050.16 -26,314,895.16
"-" is filled in)
(2) Termination of operating net profit (net loss
"-" is filled in)
Net profit attributable to owners of the parent company -51,679,144.94 -25,314,001.34
Minority shareholders' gains and losses 391,094.78 -1,000,893.82
6. Net after-tax net of other comprehensive income 19,239.29 -444,461.52
Other comprehensive income attributable to the parent company owner 19,239.29 -444,461.52
Net after tax
(1) It cannot be reclassified into profit or loss in the future
His comprehensive income
1. Re-measure the net benefit plan
Changes in liabilities or net assets
2. Under the equity method, the investee does not
Can be reclassified into other comprehensive income of profit and loss
Some shares
(2) Others that will be reclassified into profit and loss in the future 19,239.29 -444,461.52
Comprehensive income
1. Under the equity method, the investee
Will be reclassified into other comprehensive income of profit and loss
Share of share
2. Fair value of available-for-sale financial assets
Value change gains and losses
3. Held-to-maturity investments are reclassified as
Profits and losses on available-for-sale financial assets
4. Cash flow hedge profit and loss is valid
section
5. Translation difference of foreign currency financial statements 19,239.29 -444,461.52
6. Other
Other comprehensive income attributable to minority shareholders
Net after tax
VII. Total comprehensive income -51,268,810.87 -26,759,356.68
Comprehensive income attributable to owners of the parent company -51,659,905.65 -25,758,462.86
lump sum
Total comprehensive income attributable to minority shareholders 391,094.78 -1,000,893.82
Eight, earnings per share:
(1) Basic earnings per share -0.10 -0.05
(2) Diluted earnings per share -0.10 -0.05


In the current period when a business combination under the same control occurs, the net profit realized by the merged party before the merger is: yuan. The net profit realized by the merged party in the previous period is: yuan.

Legal representative: Xu Guangyu Person in charge of accounting work: Dong Qi Person in charge of accounting department: Dong Qi

4. Parent company income statement

unit: yuan

The amount of the current period
I. Operating income 0.00 277,487,196.10
Less: operating costs 0.00 262,471,249.15
Taxes and surcharges 41,433.33 1,582,003.71
Sales expenses 929,953.53
Administrative expenses 1,919,649.93 10,024,142.55
Financial expenses 6,130,371.91 5,028,964.74
Asset impairment loss - 7,624,452.39
Plus: gains from changes in fair value
"-" is filled in)
Investment income (loss is filled by "-" 2,572,292.58
Column)
Of which: for joint ventures and joint ventures
Investment income
Asset disposal income (loss with "-" sign
Fill in)
Other income
2. Operating profit (loss is marked by "-") -8,091,455.17 7,647,627.39
Plus: Non-operating income 200,097.61
Less: Non-operating expenses 174,866.94
Third, the total profit (total loss is filled with "-" -8,091,455.17 7,672,858.06
Column)
Less: Income tax expense -1,644,947.57 8,396,548.51
4. Net profit (net loss is marked with "-") -6,446,507.60 -723,690.45
(1) Net profit from continuing operations (net loss - -6,446,507.60 -723,690.45
Filled with "-")
(II) Termination of operating net profit (net loss)
Filled with "-")
V. Net after tax of other comprehensive income
(1) It cannot be reclassified into profit or loss in the future.
Other comprehensive income
1. Re-measure the defined benefit plan
Changes in net liabilities or net assets
2. Under the equity method, the investee
Cannot be reclassified into other comprehensive income
Share of share
(2) It will be reclassified into profit or loss in the future
His comprehensive income
1. Under the equity method, the investee
Other comprehensive income that will be reclassified into profit or loss in the future
Share in
2. Available-for-sale financial assets are fair
Value change gains and losses
3. Held-to-maturity investment reclassification
Profit or loss for available-for-sale financial assets
4. Cash flow hedges have
Effect
5. Foreign currency financial statement translation difference
6. Other
6. Total comprehensive income -6,446,507.60 -723,690.45
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share


5. Consolidated cash flow statement

unit: yuan

The amount of the current period
I. Cash flow from operating activities:
Cash received from sales of goods and services 224,439,061.83 371,742,407.13
Net increase in customer deposits and interbank deposits
Amount
Net increase in borrowing from central bank
Net increase in funds disbursed to other financial institutions
Amount
Cash received from the original insurance contract premium
Net cash received from reinsurance business
Net increase in policyholders’ deposits and investment funds
Disposal is measured at fair value and its changes
Net increase in financial assets at the current profit and loss
Cash for interest, commission and commission
Net increase in funds disbursed
Net increase in repurchase business funds
Tax Refund
Received other cash related to operating activities 10,223,222.70 11,242,565.22
Subtotal of cash inflow from operating activities 234,662,284.53 382,984,972.35
Cash paid for the purchase of goods and services, 32,759,833.48 224,646,550.23
Net increase in customer loans and advances
Net increase in deposits with central banks and peers
Amount
Pay the cash of the original insurance contract payment
Pay interest, commission and commission cash
Cash paid for policy dividends
60,762,813.37 31,931,530.90 paid to employees and paid to employees
Gold
Various taxes paid 30,674,302.07 4,495,582.90
Pay other cash related to operating activities 61,236,443.63 104,181,389.98
Subtotal of cash outflows from operating activities 185,433,392.55 365,255,054.01
Net cash flow from operating activities 49,228,891.98 17,729,918.34
2. Cash flow from investment activities:
Cash recovered from investment 435,971,392.29
Cash received from investment income 161,755.00 2,146,981.75
Disposal of fixed assets, intangible assets and others 788.25
Net cash recovered from long-term assets
Disposal of subsidiaries and other business units received
Net cash
Received other cash related to investment activities 627,288.43 5,769,855.03
Subtotal of cash inflows from investing activities 789,831.68 443,888,229.07
Purchase and construction of fixed assets, intangible assets and other 171,266,447.05 542,229,261.12
Cash paid for long-term assets
Cash paid for investment 3,000,000.00 190,000,000.00
Net increase in pledge loans
Obtained payment from subsidiaries and other business units 6,622,693.69 114,814,150.76
Net cash
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 180,889,140.74 847,043,411.88
Net cash flow from investing activities -180,099,309.06 -403,155,182.81
3. Cash flow from financing activities:
Absorb cash received from investment
Among them: subsidiaries absorb minority shareholders' investment
Cash received
Cash received from the loan 205,401,700.00 1,002,000,000.00
Cash received from the issuance of bonds
Received other cash related to fundraising activities 51,449,700.22
Subtotal of cash inflows from financing activities 256,851,400.22 1,002,000,000.00
Cash paid for debt repayment 40,000,000.00 521,799,820.80
Distribution of dividends, profits or interest payments 8,266,040.17 4,646,195.66
Cash
Of which: the subsidiary pays to minority shareholders
Dividend, profit
Pay other cash related to fundraising activities 41,912,100.92 58,92,535.31
Subtotal of cash outflows from financing activities 90,178,141.09 581,438,551.77
Net cash flow from financing activities 166,673,259.13 420,561,448.23
4. Exchange rate changes for cash and cash equivalents 34,499.42 -708,507.48
influences
V. Net increase in cash and cash equivalents 35,837,341.47 34,427,676.28
Plus: balance of cash and cash equivalents at the beginning of the period 77,274,652.40 115,083,829.61
6. Balance of cash and cash equivalents at the end of the period 113,111,993.87 149,511,505.89


6. Parent company cash flow statement

unit: yuan

The amount of the current period
I. Cash flow from operating activities:
Cash received for the sale of goods and services, 248,231,362.15
Tax Refund
Received other cash related to operating activities 99,316,349.00 29,488,219.40
Subtotal of cash inflow from operating activities 99,316,349.00 277,719,581.55
Cash paid for the purchase of goods and services, 210,903,926.71
Payment to employees and payment to employees 6,203,047.06
Gold
Various taxes paid 27,158,589.66 2,895,015.22
Pay other cash related to operating activities 43,454,142.89 -25,718,405.90
Subtotal of cash outflows from operating activities 70,612,732.55 194,283,583.09
Net cash flow from operating activities 28,703,616.45 83,435,998.46
2. Cash flow from investment activities:
Recover the cash received from the investment
Cash received from investment income
Disposal of fixed assets, intangible assets and others
Net cash recovered from long-term assets
Disposal of subsidiaries and other business units received
Net cash
Received other cash related to investment activities 595,022.34 5,678,323.97
Subtotal of cash inflows from investing activities 595,022.34 5,678,323.97
Purchase and construction of fixed assets, intangible assets and other 5,113,583.42
Cash paid for long-term assets
Cash Investment
Obtain payment from subsidiaries and other business units
Net cash
Pay other cash related to investment activities 119,886,586.79
Subtotal of cash outflows from investing activities 125,000,170.21
Net cash flow from investing activities 595,022.34 -119,321,846.24
3. Cash flow from financing activities:
Absorb cash received from investment
Cash received from the loan 9,500,000.00 258,500,000.00
Cash received from the issuance of bonds
Received other cash related to fundraising activities 9,557,696.58
Subtotal of cash inflows from financing activities 19,057,696.58 258,500,000.00
Cash paid for debt repayment 40,000,000.00 171,799,820.80
Distribution of dividends, profits or interest payments 6,776,218.55 4,539,623.49
Cash
Pay other cash related to fundraising activities 20,097.28 58,92,535.31
Subtotal of cash outflows from financing activities 46,796,315.83 231,331,979.60
Net cash flow from financing activities -27,738,619.25 27,168,020.40
4. Exchange rate changes for cash and cash equivalents -247,674.98
influences
V. Net increase in cash and cash equivalents 1,560,019.54 -8,965,502.36
Plus: balance of cash and cash equivalents at the beginning of the period 24,035,818.15 12,451,380.48
6. Balance of cash and cash equivalents at the end of the period 25,595,837.69 3,485,878.12


7. Consolidated owner's equity change statement

Current Amount

unit: yuan

This period
Equity attributable to equity holders
Project Other equity instruments Minority shares Owner
Equity Priority Perpetual Capital Reduction: Library Other Comprehensive Special Reserves Surplus Public General Wind Unallocated East Equity Equity
Stocks and bonds, other stocks, joint income, reserve insurance, profit,
498,56 1,668,6 -414,69 27,579, 9,263,5 7,427,7 2,211,0
I. Balance at the end of the previous year 6,987. 31,594. 0.95 031.87 78.49 28.32 54,229.
00 92 65
Plus: Accounting Policy
Change
Pre-difference
Wrong correction
Same control
Business combination
Other
498,56 1,668,6 -414,69 27,579, 9,263,5 7,427,7 2,211,0
2. Balance at the beginning of the year 6,987. 31,594. 0.95 031.87 78.49 28.32 54,229.
00 92 65
III. Changes in the current period 616,860 19,239. -51,679, -1,796,0 -52,839,
Amount (reduced by "-" .39 29 144.94 44.59 089.85
Number)
(1) Total comprehensive income 19,239. -51,679, 391,094 -51,268,
Amount 29 144.94 .78 810.87
(2) Owner input 616,860 463,126 1,079,9
And reducing capital .39.43 86.82
1. Shareholders' investment
Passing shares
2. Other equity instruments
Holder invests capital
3. Share-based payment
Owner's equity
Amount
4. Other 616,860 463,126 1,079,9
.39 .43 86.82
(3) Profit distribution -2,650,2 -2,650,2
65.80 65.80
1. Extract surplus reserve
2. Extract general risks
Prepare
3. For the owner (or -2,650,2 -2,650,2
Distribution of shareholders) 65.80 65.80
4. other
(4) Owner's equity
Internal carryover
1. Capital reserve
Capital (or equity)
2. Surplus reserve increased
Capital (or equity)
3. Surplus reserve
Loss
4. other
(5) Special reserve
1. Current extraction
2. Current use
(6) Others
498,56 1,669,2 -395,45 27,579, -42,415, 5,631,6 2,158,2
4. Balance at the end of the period 6,987. 48,455. 1.66 031.87 566.45 83.73 15,139.
00 31 80


Last year amount

unit: yuan

Previous period
Equity attributable to equity holders
Project Other equity instruments Minority shares Owner
Equity Priority Perpetual Capital Reduction: Library Other Comprehensive Special Reserves Surplus Public General Wind Unallocated East Equity Equity
Stocks and bonds, other stocks, joint income, reserve insurance, profit,
498,56 1,723,5 788,467 23,559, -11,685, 256,124 2,490,8
I. Balance at the end of the previous year 6,987. 24,062. .61 343.18 008.79 ,132.56 77,984.
00 49 05
Plus: Accounting Policy
Change
Pre-difference
Wrong correction
Same control
Business combination
Other
498,56 1,723,5 788,467 23,559, -11,685, 256,124 2,490,8
2. Balance at the beginning of the year 6,987. 24,062. .61 343.18 008.79 ,132.56 77,984.
00 49 05
3. Changes in the current period, 1,348,3 -444,46 -25,314, 2,326,4 -22,083,
Amount (reduced by "-" 81.68 1.52 001.34 20.36 660.82
Number)
(1) Total comprehensive income -444,46 -25,314, -1,000, -26,759,
Amount 1.52 001.34 893.82 356.68
(2) Owner input 1,348,3 1,348,3
And reducing capital 81.68 81.68
1. Shareholders invested in 1,348,3 1,348,3
Stocks 81.68 81.68
2. Other equity instruments
Holder invests capital
3. Share-based payment
Owner's equity
Amount
4. other
(3) Profit distribution
1. Extract surplus reserve
2. Extract general risks
Prepare
3. For the owner (or
Distribution of shareholders
4. other
(4) Owner's equity
Internal carryover
1. Capital reserve
Capital (or equity)
2. Surplus reserve increased
Capital (or equity)
3. Surplus reserve
Loss
4. other
(5) Special reserve
1. Current issue 348,659 348,659
.95 .95
2. Current use 348,659 348,659
.95 .95
(6) Others 3,327,3 3,327,3
14.18 14.18
498,56 1,724,8 344,006 23,559, -36,999, 258,450 2,468,7
4. Balance at the end of the period 6,987. 72,444. .09 343.18 010.13 ,552.92 94,323.
00 17 23


8. Change in parent company's owner's equity

Current Amount

unit: yuan

This period
Project Other equity instruments Less: Inventory Other comprehensive Unallocated Ownership
Equity capital reserve special reserve surplus reserve
Preferred stock, perpetual debt, other stocks, profit, profit, total
I. Balance at the end of the previous year 498,566, 1,722,179 27,579,03 84,030, 2,332,355
987.00 ,000.80 1.87 132.03 ,151.70
Plus: Accounting Policy
Change
Pre-difference
Wrong correction
Other
2. The beginning balance of the current year is 498,566, 1,722,179 27,579,03 84,030, 2,332,355
987.00 ,000.80 1.87 132.03 ,151.70
Third, the current period of increase and decrease changes -6,446,5 -6,446,50
Amount (reduced by "-" 07.60 7.60
Number)
(1) Total comprehensive income -6,446,5 -6,446,50
Amount 07.60 7.60
(2) Owner input
And reducing capital
1. Shareholders' investment
Passing shares
2. Other equity instruments
Holder invests capital
3. Share-based payment
Owner's equity
Amount
4. other
(3) Profit distribution
1. Extract surplus reserve
2. For the owner (or
Distribution of shareholders
3. other
(4) Owner's equity
Internal carryover
1. Capital reserve
Capital (or equity)
2. Surplus reserve increased
Capital (or equity)
3. Surplus reserve
Loss
4. other
(5) Special reserve
1. Current extraction
2. Current use
(6) Others
4. Balance at the end of the period 498,566, 1,722,179 27,579,03 77,583, 2,325,908
987.00 ,000.80 1.87 624.43 ,644.10


Last year amount

unit: yuan

Previous period
Project Other equity instruments Less: Inventory Other comprehensive Unallocated Ownership
Equity capital reserve special reserve surplus reserve
Preferred stock, perpetual debt, other stocks, profit, profit, total
I. Balance at the end of the previous year 498,566, 1,722,048 23,559,34 -36,837, 2,207,336
987.00, 259.13 3.18 974.88, 614.43
Plus: Accounting Policy
Change
Pre-difference
Wrong correction
Other
2. The beginning balance of the current year is 498,566, 1,722,048 23,559,34 -36,837, 2,207,336
987.00, 259.13 3.18 974.88, 614.43
Third, the current period of increase and decrease changes -723,69 -723,690.
Amount (reduced by "-" 0.45 45
Number)
(1) Total comprehensive income -723,69 -723,690.
Amount 0.45 45
(2) Owner input
And reducing capital
1. Shareholders' investment
Passing shares
2. Other equity instruments
Holder invests capital
3. Share-based payment
Owner's equity
Amount
4. other
(3) Profit distribution
1. Extract surplus reserve
2. For the owner (or
Distribution of shareholders
3. other
(4) Owner's equity
Internal carryover
1. Capital reserve
Capital (or equity)
2. Surplus reserve increased
Capital (or equity)
3. Surplus reserve
Loss
4. other
(5) Special reserve
1. Current extraction 348,659.9 348,659.9
5 5
2. This issue uses 348,659.9 348,659.9
5 5
(6) Others
4. The ending balance of the current period is 498,566, 1,722,048 23,559,34 -37,561, 2,206,612
987.00,259.13 3.18 665.33,923.98


Third, the company's basic situation

Beijing Kaiwen Dexin Education Technology Co., Ltd. (hereinafter referred to as “Company” or “Company”) formerly known as Jiangsu Zhongtai Bridge Steel Structure Co., Ltd., is a joint-stock company established by Jiangsu Zhongtai Steel Structure Co., Ltd. On March 28, 2008, it was registered and established by the Jiangsu Administration for Industry and Commerce. The registration number of the enterprise legal person business license is 320000000070820. At the time of its establishment, the registered capital was 116.5 million yuan and the shares were 116.5 million shares.

According to the resolution of the company's first extraordinary shareholders meeting in 2011 and the revised articles of association, and approved by the China Securities Regulatory Commission on the approval of the initial public offering of Jiangsu Zhongtai Bridge Steel Co., Ltd. (CSRC [2012] No. 185) Approved, on March 7, 2012, the company publicly issued 39 million shares of RMB common stock to the public, increased the registered capital by RMB 39 million, and the registered capital after the change was RMB 155.5 million.

According to the resolution of the 2012 Annual General Meeting of Shareholders, based on the company's total share capital of 155.5 million shares as of December 31, 2012, the company will transfer 10 shares for every 10 shares to all shareholders by capital reserve fund, and transfer the total share capital to 155 million shares, transfer to share capital. The registered capital afterwards was RMB 311.0 million.

According to the company's 2015 first extraordinary general meeting of shareholders resolutions and revised regulations, and approved by the China Securities Regulatory Commission on the approval of Jiangsu Zhongtai Bridge Steel Co., Ltd. non-public offering of shares (certification permit [2016] Approved by Circular No. 809), the company raised matching funds to 187,566,987.00 shares of the limited target tradable shares of the three specific investors of the eight major branch holding group companies, Huaxuan (Shanghai) Equity Investment Fund Co., Ltd. and Zheng Yaping. The share value is RMB 1 yuan, the issue price per share is RMB 9.33, the registered capital is RMB 187,566,987.00, and the registered capital after the change is RMB 498,566,987.00.

Company residence: 109, 1st floor, West Section, Building 2, 4th District, Xishan Creative Park, Haidian District, Beijing. Legal representative of the company: Xu Guangyu.

The company's main business activities are technology development, technology promotion, technology transfer, technical consulting, technical services; education information consulting. (Projects subject to approval according to law may be subject to business activities after approval by relevant departments).

Financial report approval date: The financial statements were approved by the board of directors of the company on August 7, 2018.

New subsidiaries in this issue:

No. Subsidiary company full name Subsidiary name Reason for inclusion in the scope of consolidation
1 Kevin Education US Co., Ltd. Kevin America Co., Ltd.
2 Princeton Westminster International Limited Princeton International Inc.
3 Hunan Kaiwen Xingyi Education Technology Co., Ltd. Kaiwen Xingyi New
4 Beijing Chaoyang Kewen School Chaoyang School New


Fourth, the basis for the preparation of financial statements

1. Preparation basis

Based on continuing operations, the Company confirms and measures according to the actual accounting transactions and events, in accordance with the Accounting Standards for Business Enterprises and its application guidelines and guidelines.

Prepare financial statements on this basis.

2. Continuous operation

The Company has assessed the ability to continue operations for 12 months from the end of the reporting period and has not found any issues affecting the Company's ability to continue as a going concern. The Company is based on continuing operations.

It is reasonable to prepare financial statements.

V. Significant accounting policies and accounting estimates

Specific accounting policies and accounting estimates suggest:

The following important accounting policies and accounting estimates of the Company are formulated in accordance with the Accounting Standards for Business Enterprises. Businesses not mentioned are implemented in accordance with the relevant accounting policies in the Accounting Standards for Business Enterprises.

1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the company are in compliance with the requirements of the Accounting Standards for Business Enterprises, which truly and completely reflect the financial status, operating results, changes in owner's equity and current status of the company.

Information about gold flow and so on.

2. Accounting period

The company's fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

3. Business cycle

The normal business cycle of the company is one year.

4. Bookkeeping currency

The Company's bookkeeping base currency is Renminbi, and the overseas (sub)subsidiary is the bookkeeping base currency according to the currency of the country or region where it is located.

5. Accounting treatment method for business combination under the same control and not under the same control

(1) Business combination under the same control

The assets and liabilities acquired by the Company in the business combination are measured at the carrying amount of the combining party in the consolidated financial statements of the ultimate controlling party on the combination date. Among them, right

In accordance with the accounting policies adopted by the merged party and the company before the merger, the accounting policy is based on the principle of importance, that is, according to the accounting policy of the company.

The book value of the side assets and liabilities is adjusted. There is a difference between the book value of the net assets acquired by the company in the business combination and the book value of the consideration paid.

First, adjust the capital reserve (capital premium or equity premium). If the balance of capital reserve (capital premium or equity premium) is insufficient, the surplus reserve will be offset and the reserve will not be offset.

Allocate profits.

(2) Business combinations not under the same control

The identifiable assets and liabilities of the acquiree acquired by the company in the business combination are measured at its fair value on the purchase date. Among them, for the buyer and the company

The accounting policies adopted before the merger are different, and the accounting policies are unified based on the principle of importance, that is, the books of the assets and liabilities of the purchased party are in accordance with the accounting policies of the company.

The value is adjusted. The merger cost of the Company on the purchase date is greater than the difference between the fair value of the identifiable assets and liabilities of the acquiree acquired in the business combination, and is recognized as goodwill;

If the merger cost is less than the difference between the acquiree's identifiable assets and the fair value of the liabilities acquired in the business combination, the merger cost and the merger are first obtained.

The fair value of the identifiable assets and liabilities of the purchaser shall be reviewed. After the review, the merger cost is still less than the fair value of the identifiable assets and liabilities of the acquired party.

The difference is recognized as the consolidated profit and loss for the current period.

6. Preparation method of consolidated financial statements

(1) Determination of the scope of consolidation

The scope of consolidation of the consolidated financial statements is determined on the basis of control, and includes not only the sub-publics determined by voting rights (or similar voting rights) themselves or in combination with other arrangements.

Division, also includes structured entities based on one or more contractual arrangements.

Control means that the company has the power to the investee, enjoys variable returns by participating in the relevant activities of the investee, and has the ability to use the power to the investee.

Affect the amount of its return. Subsidiaries refer to the entities controlled by the company (including the divisible parts of the enterprise and the invested entity, and the structured entities controlled by the enterprise, etc.).

A structured subject is one that is designed without determining voting rights or similar rights as a decisive factor in determining its controlling party (note: sometimes referred to as a special purpose subject).

(2) Preparation method of consolidated financial statements

Based on the financial statements of itself and its subsidiaries, the Company prepares consolidated financial statements based on other relevant information.

The Company prepares consolidated financial statements and regards the entire enterprise group as an accounting entity. According to the confirmation, measurement and presentation requirements of relevant accounting standards,

The accounting policy reflects the overall financial status, operating results and cash flow of the enterprise group.

1 Consolidate assets, liabilities, owner's equity, income, expenses and cash flow of the parent company and subsidiaries.

2 Set off the share of the parent company's long-term equity investment in the subsidiary and the parent company's share of the owner's equity.

3 Offset the impact of internal transactions between the parent company and its subsidiaries and subsidiaries. If the internal transaction indicates that the relevant assets have impairment losses, the full amount shall be confirmed.

Partial loss.

4 Adjust the special transaction matters from the perspective of the enterprise group.

(3) Increase or decrease of subsidiaries' processing during the reporting period

1 increase subsidiary or business

A. Subsidiary or business added by business combination under the same control

(a) When preparing the consolidated balance sheet, adjust the opening balance of the consolidated balance sheet and adjust the relevant items of the comparative statement, as if it were the combined report

The body always exists from the point at which the final control party begins to control.

(b) When preparing the consolidated income statement, the income, expenses and profits of the subsidiary and the business combination from the beginning of the period to the end of the reporting period are included in the consolidated income statement, and

The related items of the report are adjusted, as if the merged report body has existed since the final control party began to control.

(c) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from the beginning of the period to the end of the reporting period are included in the consolidated cash flow statement, and

The related items of the report are adjusted, as if the merged report body has existed since the final control party began to control.

B. Subsidiaries or businesses added by business combinations not under the same control

(a) When preparing the consolidated balance sheet, the opening balance of the consolidated balance sheet is not adjusted.

(b) When preparing the consolidated income statement, include the income, expenses and profits of the subsidiary and the business purchase date to the end of the reporting period in the consolidated income statement.

(c) When preparing the consolidated cash flow statement, the cash flow from the purchase date of the subsidiary to the end of the reporting period is included in the consolidated cash flow statement.

2 Disposal of subsidiaries or businesses

A. When preparing the consolidated balance sheet, the opening balance of the consolidated balance sheet is not adjusted.

B. When compiling the consolidated income statement, the income, expenses and profits of the subsidiary and the business beginning to the disposal date are included in the consolidated income statement.

C. When preparing the consolidated cash flow statement, the cash flow of the subsidiary and the business beginning to the disposal date is included in the consolidated cash flow statement.

(4) Special considerations in merger offsetting

1 Subsidiary holding the company's long-term equity investment shall be regarded as the company's treasury shares, as the deduction of the owner's equity, the owner's equity in the consolidated balance sheet

The project is listed as “minus: treasury stock”.

The long-term equity investment held by the subsidiaries with each other is based on the offsetting method of the company's equity investment in the subsidiary, and the long-term equity investment and its corresponding subsidiaries are owned.

The share of the rights of the parties is offset by each other.

2 “Special Reserves” and “General Risk Preparedness” projects are not included in paid-in capital (or equity), capital reserve, but also in retained earnings and undistributed profits.

After the equity investment and the owner's equity of the subsidiary are offset, they are restored according to the share of the owner of the parent company.

3 Due to the offset of the unrealized internal sales profit and loss, the book value of the assets and liabilities in the consolidated balance sheet and its tax base of the taxpayer are temporary.

For differences, the deferred income tax assets or deferred income tax liabilities are recognized in the consolidated balance sheet, and the income tax expense in the consolidated income statement is adjusted, but directly

Except for the transactions or events of the owner's equity and the deferred income tax related to the business combination.

4 The unrealized internal transaction gains and losses arising from the sale of assets by the Company to the subsidiary shall fully offset the “net profit attributable to the owner of the parent company”. Subsidiary to the company

The unrealized internal transaction gains and losses arising from the sale of assets shall be in accordance with the Company's distribution ratio to the subsidiary in the “net profit attributable to the owner of the parent company” and “a few

Offset distribution between shareholders' gains and losses. The unrealized gains and losses from internal transactions arising from the sale of assets between subsidiaries shall be in accordance with the proportion of the Company's distribution to the seller's subsidiaries.

Offset is allocated between “net profit attributable to owners of the parent company” and “minority gains and losses”.

If the current loss shared by the minority shareholders of the subsidiary exceeds the minority shareholder’s share of the owner’s equity at the beginning of the subsidiary, the balance shall still be reduced by several shares.

East equity.

(5) Accounting treatment of special transactions

1 Purchase minority shareholders' equity

The Company purchases the equity of the subsidiaries owned by the minority shareholders of the subsidiary, and in the individual financial statements, the investment cost of the newly acquired long-term equity investment is purchased according to the

The fair value measurement of the consideration paid. In the consolidated financial statements, the long-term equity investment newly acquired due to the purchase of minority shares shall be calculated in accordance with the proportion of new shareholdings.

The difference between the net assets share that the company has continuously calculated from the date of purchase or the merger date shall be adjusted to the capital reserve (capital premium or equity premium), and the capital reserve is insufficient.

If it is reduced, it will reduce the surplus reserve and undistributed profit.

2 Step by step to obtain control of the subsidiary through multiple transactions

A. Step by step to achieve business combination under the same control through multiple transactions

In the case of a “package deal”, the company treats each transaction as a transaction that acquires control of the subsidiary. In individual financial statements, prior to the merger date

In each transaction, the equity investment is recognized as a long-term equity investment and its initial investment cost is calculated based on the corresponding shareholding ratio.

The book value share in the party's consolidated financial statements is determined. The difference between the initial cost of the long-term equity investment and the book value of the payment consideration is adjusted to the capital reserve (capital premium or

Equity premium) If the capital reserve (capital premium or equity premium) is insufficient to offset, it will offset the surplus reserve and undistributed profits. Long-term equity investment in subsequent measurement

The capital is accounted for by the cost method, but does not involve the preparation of consolidated financial statements. On the merger date, the initial cost of the company's long-term equity investment in the subsidiary is in accordance with the subsidiary's

The calculation of the shareholding ratio is determined by the book value share of the net assets of the merged party in the consolidated financial statements of the ultimate controlling party, and the initial investment cost and the long-term before the merger.

Adjusting the capital reserve (capital premium or equity premium) by the difference between the book value of the equity investment and the sum of the book value of the new share payment consideration on the merger date,

If the capital reserve (capital premium or equity premium) is insufficient to offset, it will offset the surplus reserve and undistributed profits. Simultaneously prepare consolidated financial statements for the merger date, and

In the consolidated financial statements, the parties are deemed to have adjusted in the current state when the ultimate controlling party begins to control.

The terms, conditions and economic impact of each transaction are in one or more of the following situations, and multiple transactions are usually accounted for as a “package deal”:

(a) These transactions are made simultaneously or with consideration of each other's influence.

(b) These transactions as a whole can achieve a complete business outcome.

(c) The occurrence of a transaction depends on the occurrence of at least one other transaction.

(d) A transaction is not economical when considered separately, but it is economical when considered together with other transactions.

If it is not a “package deal”, in each transaction before the merger date, each transaction occurred by the company is recognized as a financial asset according to the fair value of the consideration paid.

(Financial assets measured at fair value through profit or loss or available-for-sale financial assets) or long-term equity investments accounted for using the equity method. On the merger day,

In the individual financial statements, the company determines the long-term shares based on the share of the book value of the subsidiary’s net assets in the final controlling party’s consolidated financial statements.

The initial investment cost of the right investment. The initial investment cost of the long-term equity investment in the merger, and the book value of the long-term equity investment before the merger plus the merger date

The difference between the sum of the book value of the new payment considerations, the capital reserve (capital premium or equity premium), the capital reserve is insufficient to offset, and the surplus is offset

Accumulated and undistributed profits.

In the consolidated financial statements, the parties are deemed to have adjusted in the current state when the ultimate controlling party begins to control, in the preparation of the consolidated financial report.

In the case of the table, the relevant assets and liabilities of the merged party are merged into the combined party and the financial assets, not earlier than the time when the combining party and the merged party are under the control of the ultimate controlling party.

In the comparison report of the report, the consolidated net assets will be adjusted in the comparison report to adjust the related items under the owner's equity. Due to the capital reserve of the merging party

The balance of the price or the share premium is insufficient. If the part of the retained earnings realized by the merged party before the merger is not fully recovered in the consolidated financial statements,

The Company explains this situation in the notes to the statement, including the amount of retained earnings realized by the merged party before the merger, the amount attributable to the company and the capital reserve.

The balance is insufficient for the amount of retained earnings that has not been transferred to the retained balance sheet.

If the combining party holds the equity investment before the acquisition of the control of the merged party and is accounted for using the equity method, the combining party and the merged party are in the same party on the date of obtaining the original equity.

The relevant profit and loss, other comprehensive income and other changes in owner's equity have been recognized between the date of the final control and the date of the combination.

Retained earnings at the beginning of the period.

B. Step by step to achieve business combination not under the same control through multiple transactions

In the case of a “package deal”, the company treats each transaction as a transaction that acquires control of the subsidiary. In individual financial statements, prior to the merger date

In each transaction, the equity investment is recognized as a long-term equity investment and its initial investment cost is determined based on the fair value of the consideration paid. Long-term equity in subsequent measurement

Investments are accounted for using the cost method, but do not involve the preparation of consolidated financial statements. On the date of the merger, in the individual financial statements, in accordance with the original long-term equity investment

The sum of the value plus the new investment cost (the fair value of the consideration paid for the further acquisition of the shares) is the initial investment cost of the long-term equity investment on the merger date. In the merger

In the financial statements, the initial investment cost is offset against the share of the fair value of the identifiable net assets of the subsidiary. The difference is recognised as goodwill or recognised in profit or loss.

If it is not a “package deal”, each transaction incurred by the investor in each transaction prior to the merger date is recognized as a financial asset at the fair value of the consideration paid.

(Financial assets measured at fair value through profit or loss or available-for-sale financial assets) or long-term equity investments accounted for using the equity method. On the merger day,

In the individual financial statements, the book value of the original equity investment (financial assets or long-term equity investments accounted for under the equity method) plus new investment costs

And, as the initial cost of accounting for long-term equity investment by cost method. In the consolidated financial statements, for the shares of the purchased party held before the purchase date, according to the stock

The fair value of the right at the date of purchase is re-measured, the difference between the fair value and the book value is included in the current investment income; the equity of the purchased party held before the purchase date

If other comprehensive incomes under the equity method are accounted for, other comprehensive income related to them shall be transferred to the current income at the date of purchase, but due to the re-measurement of the merged party

Except for other comprehensive income arising from changes in net assets or net liabilities of the defined benefit plan. In the notes, the company discloses that the equity of the purchased party held before the purchase date is

The fair value of the purchase date and the amount of the relevant gain or loss arising from the re-measurement of the fair value.

3 The company disposed of long-term equity investment in subsidiaries but did not lose control

The parent company partially disposes of the long-term equity investment in the subsidiary without losing control. In the consolidated financial statements, the disposal price is relative to the disposal of the long-term equity investment.

Should enjoy the difference between the share of the net assets that the subsidiary has continuously calculated from the date of purchase or the merger date, adjust the capital reserve (capital premium or equity premium), capital reserve

If there is insufficient credit, adjust the retained earnings.

4 The company disposed of long-term equity investment in subsidiaries and lost control

A. Disposal of a transaction

If the company loses control over the investee due to the disposal of part of the equity investment, etc., in the preparation of the consolidated financial statements, the remaining equity is lost according to its control.

The fair value of the date of the exercise is re-measured. The sum of the consideration obtained by disposing of the equity and the fair value of the remaining equity, less the original shareholding ratio

The difference between the share of net assets that has been continuously calculated from the date of purchase or the date of combination is included in the investment income of the current period of loss of control, and the goodwill is written off.

Business combinations are not under the same control and there is goodwill). Other comprehensive income related to the original subsidiary's equity investment, etc., when the control is lost, it is converted into current investment.

Income.

In addition, other comprehensive income and other changes in owner's equity related to the equity investment of Atom Co., Ltd. are transferred to the current profit and loss when control is lost, due to the

Except for other comprehensive income arising from changes in net liabilities or net assets of the new measurement and defined benefit plan.

B. Step by step multiple transactions

In the consolidated financial statements, it should first be judged whether the step-by-step transaction is a “package deal”.

If the step-by-step transaction is not a “package deal”, the transactions before the loss of control over the subsidiary shall be based on “the parent company’s disposal of the long-term equity of the subsidiary”.

The relevant provisions of the capital but not lost control.

If the step-by-step transaction is a “package deal”, each transaction should be accounted for as a transaction that disposes of the subsidiary and loses control;

For each transaction before the loss of control, the difference between the disposal price and the disposal investment and the share of the net assets of the subsidiary shall be recognized as other in the consolidated financial statements.

The comprehensive income, when the control is lost, is transferred to the profit and loss of the current loss of control.

5 factor company's minority shareholders increase capital and dilute the proportion of equity owned by the parent company

The other shareholders (minority shareholders) of the subsidiary increase the capital of the subsidiary, thereby diluting the share ratio of the parent company to the subsidiary. In the consolidated financial statements, in accordance with the capital increase

The former parent company's shareholding ratio is calculated as the share of the net assets of the subsidiary before the capital increase. The share is calculated after the capital increase according to the parent company's shareholding ratio.

The difference between the net asset share of the company is adjusted to the capital reserve (capital premium or equity premium), and the capital reserve (capital premium or equity premium) is insufficient to be offset.

retained earnings.

7. Classification of joint venture arrangements and accounting treatment for joint operations

A joint venture arrangement is an arrangement that is jointly controlled by two or more parties. The company's joint venture arrangements are divided into joint operations and joint ventures.

(1) Joint management

Joint operation refers to the joint arrangement of the company that enjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement.

The Company confirms the following items related to the share of interests in the joint operation and conducts accounting treatment in accordance with the relevant accounting standards:

1 to confirm the assets held separately and to confirm the assets held jointly by their shares;

2 Recognize the liabilities assumed separately and recognize the shared liabilities by their share;

3 to recognise the proceeds from the sale of the share of the common operating output that it enjoys;

4 to recognise the income generated by the joint operation from the sale of the output according to its share;

5 Confirm the expenses incurred separately and confirm the expenses incurred by the joint operation according to their shares.

(2) Joint venture

A joint venture is a joint venture arrangement in which the company only has rights to the net assets of the arrangement.

The Company shall account for the investment of the joint venture in accordance with the provisions of the long-term equity investment related equity method.

8. Determination criteria for cash and cash equivalents

Cash refers to the company's cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to short-term holdings (generally due within three months from the date of purchase), flow

Strong, easy to convert into a known amount of cash, the risk of small changes in value.

9. Foreign currency business and foreign currency statement translation

(1) Method for determining the exchange rate during foreign currency transactions

The initial recognition of the foreign currency transactions of the Company is converted into the recording currency using the spot exchange rate on the transaction date or the approximate exchange rate of the spot exchange rate.

(2) Translation method of foreign currency monetary items on the balance sheet date

On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. Due to the spot exchange rate on the balance sheet date and the initial confirmation or previous

Exchange differences arising from differences in spot exchange rates on the balance sheet date are recognised in profit or loss for the current period.

(3) Foreign currency statement conversion method

Adjust the accounting period and accounting policies of overseas operations before converting the financial statements of overseas business operations, so that they are consistent with the accounting period and accounting policies of the enterprise, and then

According to the adjusted accounting policy and accounting period, prepare the financial statements of the corresponding currency (currency other than the recording currency), and then enter the financial statements of overseas operations according to the following methods.

Line conversion:

1 Assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date. Other items besides the “undistributed profit” item of the owner's equity item.

Use the spot exchange rate at the time of occurrence to convert.

2 Income and expense items in the income statement are translated at the spot exchange rate on the transaction date or the approximate exchange rate of the spot exchange rate.

3 The translation difference of the foreign currency financial statements generated, when preparing the consolidated financial statements, separately lists “other comprehensive income” under the owner's equity item in the consolidated balance sheet.

4 Foreign currency cash flows and cash flows of overseas subsidiaries are translated using the spot exchange rate on the date of the cash flow or the approximate exchange rate of the spot exchange rate. Exchange rate changes to cash

The amount of impact should be used as a reconciliation item and presented separately in the cash flow statement.

10. Financial instruments

(1) Classification of financial assets

1 Financial assets measured at fair value through profit or loss

Including trading financial assets and financial assets directly designated as fair value through profit or loss, the former mainly refers to the sale of the company in the near future.

And holding stocks, bonds, funds, and derivatives investments that are not effective hedging instruments. Such assets are initially measured at the fair value at the time of acquisition.

The amount of the transaction is recognized and the related transaction expense is recognised in profit or loss. The payment of the price includes a cash dividend that has been announced but not yet paid or has already paid interest but has not yet received

The bond interest taken is separately recognized as an item receivable. Obtain interest or cash dividends during the holding period and recognize them as investment income. On the balance sheet date, the company will use this type of gold

The finance products are measured at fair value through profit or loss. When such financial assets are disposed, the difference between the fair value and the initial recorded amount is recognized as an investment.

Revenue, while adjusting the gains and losses of changes in fair value.

2 held to maturity investment

It mainly refers to government bonds and corporate bonds with fixed maturities, fixed or determinable payments, and the company's intentions and ability to hold to maturity. Such financial financing

The production is based on the sum of the fair value at the time of acquisition and the related transaction expenses as the initial confirmation amount. Bond interest included in the payment price but not yet paid,

It is confirmed as an account receivable. Held-to-maturity investments are recognized as interest income based on amortized cost and actual interest rate during the holding period and are included in investment income. Disposal holding until

In the period of investment, the difference between the purchase price and the book value of the investment is included in the investment income.

3 receivables

Receivables mainly include accounts receivable and other receivables. Accounts receivable refers to the receivables formed by the company's sales of goods or provision of labor services. Accounts receivable by purchase

The amount of the contract or agreement receivable by the party is the initial confirmation amount.

4 available-for-sale financial assets

Mainly refers to the financial assets of the Company that are not measured at fair value through profit or loss, held-to-maturity investments, loans and receivables.

Production. The available-for-sale financial assets are initially recognized as the sum of the fair value of the financial assets acquired and the related transaction expenses. The paid price included in the payment

Interest on bonds that have not been received but not yet received, or cash dividends that have been declared but not yet issued, are separately recognized as receivables. Interest earned during the period in which the available-for-sale financial assets are held

Or cash dividends are included in investment income.

The available-for-sale financial assets are foreign currency monetary financial assets, and the exchange gains and losses formed by them shall be included in the current profits and losses. Available-for-sale debtors calculated using the effective interest method

Interest on investment is recognised in profit or loss for the current period; cash dividends from available-for-sale equity instruments are recognised in profit or loss when the investee declares dividends. Assets and liabilities

At the date of the table, available-for-sale financial assets are measured at fair value, and their changes are included in other comprehensive income. When disposing of available-for-sale financial assets, the price to be obtained and the financial

The difference between the book value of the assets is included in the investment income; at the same time, the accumulated amount of the fair value change originally included in the owner's equity is transferred out of the amount of the disposal part, and is included in the investment.

Income.

(2) Classification of financial liabilities

(1) Financial liabilities measured at fair value through profit or loss, including transaction financial liabilities and designated at fair value through profit or loss.

Financial liabilities; such financial liabilities are initially measured at fair value, the related transaction expense is directly recognised in profit or loss in the period,

Into the current profit and loss.

2 Other financial liabilities refer to financial liabilities other than financial liabilities measured at fair value through profit or loss.

(3) Reclassification of financial assets

If an investment is no longer suitable for being classified as held-to-maturity investment due to changes in intent or ability to hold, the Company reclassifies it as an available-for-sale financial asset and

The fair value is subsequently measured. The amount of held-to-maturity investments sold or reclassified is large and does not fall under the Accounting Standards for Business Enterprises No. 22 - Confirmation of Financial Instruments

And the exceptions referred to in Article 16 of the Measures, so that the remainder of the investment is no longer suitable for being classified as held-to-maturity investments, the Company shall account for the remainder of the investment.

The classification is classified as available-for-sale financial assets and is subsequently measured at fair value, but no longer is financed in the current fiscal year and in the following two full fiscal years.

Production is divided into held-to-maturity investments.

On the reclassification date, the difference between the book value of the investment and the fair value is included in other comprehensive income, and is transferred when the available-for-sale financial assets are depreciated or derecognised,

It is included in the current profit and loss.

(4) Distinction between financial liabilities and equity instruments

Financial liabilities and equity instruments are distinguished according to the following principles, except in special circumstances:

1 If the company cannot unconditionally avoid delivering a contractual obligation by delivering cash or other financial assets, the contractual obligation is consistent with the definition of financial liability. some

Although financial instruments do not explicitly contain the terms and conditions of delivery of cash or other financial assets, it is possible to indirectly form contractual meaning through other terms and conditions.

Business.

2 If a financial instrument needs to be used or can be settled by the company's own equity instruments, it is necessary to consider the company's own equity instruments used to settle the instrument.

An alternative to gold or other financial assets, in order to give the instrument holder a residual interest in the assets of the issuer after deducting all liabilities. If it is the former, it should

The instrument is the financial liability of the issuer; if it is the latter, the instrument is the equity instrument of the issuer. In some cases, a financial instrument contract requires the company to use or

The financial instrument can be settled by its own equity instrument, where the amount of contractual rights or contractual obligations is equal to the amount of its own equity instruments that can be obtained or required to be delivered multiplied by its settlement.

The fair value of the time, regardless of the amount of the contractual or contractual obligation is fixed, or based in whole or in part on the market price of the company's own equity instruments

A foreign variable (such as an interest rate, the price of a commodity, or the price of a financial instrument) changes, and the contract is classified as a financial liability.

(5) Transfer of financial assets

Financial asset transfer refers to the following two situations:

A. Transfer the contractual right to receive cash flow from financial assets to the other party;

B. Transfer the financial assets in whole or in part to the other party, but retain the contractual right to receive the cash flow of the financial assets, and bear the cash flow to be paid to one or

Contractual obligations of multiple payees.

1 Termination of confirmed transfer of financial assets

Almost all risks and rewards of ownership of financial assets have been transferred to the transferee, or neither transfer nor retention of almost all risks of ownership of financial assets

And remuneration, but waived the control of the financial assets, the derecognition of the financial assets.

When judging whether the control of the transferred financial assets has been abandoned, the actual ability of the transferor to sell the financial assets is emphasized. Transferred financial assets that can be transferred separately

The overall sale to a third party with no related party relationship, and there is no additional condition to limit the sale, indicating that the company has given up control of the financial asset.

When the company judges whether the transfer of financial assets satisfies the conditions for derecognition of financial assets, it pays attention to the essence of the transfer of financial assets.

If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts is included in the current profit and loss:

A. The book value of the transferred financial assets;

B. The consideration received due to the transfer, and the cumulative change in fair value that was originally included in the owner's equity (when the transferred financial asset is an available-for-sale financial asset)

Sum.

If the partial transfer of financial assets meets the conditions for derecognition, the book value of the transferred financial assets as a whole is in the derecognised portion and the unrecognized portion (in this case)

In the case where the retained service assets are treated as part of the unrecognized financial assets, they are apportioned according to their respective fair values, and the following two amounts are

The difference is included in the current profit and loss:

A. The book value of the derecognition part;

B. The amount of the derecognition part of the consideration and the amount of the derecognition part of the cumulative amount of changes in fair value that is directly recognised in owners' equity

The sum of the circumstances in which financial assets are available for sale.

2 Continue to be involved in the transferred financial assets

If there is neither transfer nor retention of almost all the risks and rewards of ownership of financial assets, and the control of the financial assets is not abandoned, it shall continue to be involved in it.

The extent of the transfer of financial assets confirms the relevant financial assets and the related liabilities are recognized accordingly.

The extent of continuing involvement in the transferred financial assets refers to the level of risk that the value of the financial assets faces.

3 Continue to confirm the transferred financial assets

If you still retain almost all the risks and rewards of ownership of the transferred financial assets, you should continue to confirm the transferred financial assets as a whole and confirm the received consideration as one.

Financial liabilities.

The financial assets and related financial liabilities recognized may not be offset. In the subsequent accounting period, the company should continue to confirm the income generated by the financial assets and the financial negative

The cost of debt. If the financial assets transferred are measured at amortized cost, the related liabilities recognized shall not be designated at fair value through profit or loss.

Financial liabilities.

(6) Termination of financial liabilities

If all or part of the current obligations of a financial liability have been discharged, the financial liability or part of it is derecognised.

If the current obligation to repay a financial liability is transferred to an institution or a trust, and the current obligation to repay the debt still exists, the financial liability will not be terminated, nor will it be terminated.

Recognized assets.

Signing an agreement with creditors to replace existing financial liabilities with new financial liabilities, and the contractual terms of new financial liabilities and existing financial liabilities are substantially different,

Derecognition of existing financial liabilities and recognition of new financial liabilities.

If the contractual terms of all or part of the existing financial liabilities are substantially modified, the existing financial liabilities or part of them will be terminated, and the financial liabilities after the amendments will be

The debt was recognized as a new financial liability.

If the financial liabilities are derecognised in whole or in part, the book value of the recognition part and the consideration paid (including the transferred non-cash assets or new financial liabilities) will be terminated.

The difference between the two is included in the current profit and loss.

(7) Offset of financial assets and financial liabilities

Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset against each other. However, if the following conditions are met, the net amount after offsetting each other is negative in the assets.

Listed in the debt statement:

The company has a statutory right to offset the confirmed amount, and such legal rights are currently enforceable;

The company plans to settle the net assets or realize the financial assets and pay off the financial liabilities at the same time.

If the financial assets that do not meet the conditions for termination confirmation are transferred, the transferor shall not offset the transferred financial assets and related liabilities.

(8) Financial assets impairment test method and impairment provision accrual method

1 Objective evidence of impairment of financial assets:

A. The issuer or the debtor has serious financial difficulties;

B. The debtor violates the terms of the contract, such as default or overdue payment of interest or principal;

C. The creditor makes concessions to the debtor who has financial difficulties for economic or legal considerations;

D. The debtor may fail or undergo other financial restructuring;

E. Due to major financial difficulties of the issuer, the financial assets cannot continue to trade in the active market;

F. It is impossible to identify whether the cash flow of an asset in a group of financial assets has been reduced, but after an overall evaluation based on the public data, it is found that the group finances

Estimated future cash flows from initial recognition have been reduced and measurable;

G. Significant adverse changes in the technical, market, economic or legal environment in which the debtor operates, which may make it impossible for equity instrument investors to recover the investment cost;

H. The fair value of equity instrument investments has experienced a serious or non-temporary decline;

I. Other objective evidence that the financial assets are impaired.

2 Impairment test of financial assets (excluding receivables)

A. Held-to-maturity investment impairment test

When the held-to-maturity investment is impaired, the book value of the held-to-maturity investment is reduced to the estimated future cash flow (excluding future credit losses that have not yet occurred)

The current value, the amount of write-down is recognized as the asset impairment loss, which is included in the current profit and loss.

The present value of expected future cash flows is determined by discounting the original effective interest rate of the held-to-maturity investment, taking into account the value of the relevant collateral (acquisition and sale of the collateral)

The cost of the birth is deducted). The original effective interest rate is the actual interest rate calculated and determined when the held-to-maturity investment is initially recognized. For floating-rate held-to-maturity investments,

The current effective interest rate stipulated in the contract can be used as the discount rate when calculating the present value of future cash flows.

Even if the terms of the contract are re-agreed or modified due to the financial difficulties of the debtor or the financial asset issuer, the amount calculated before the modification of the clause is still used when the impairment loss is recognized.

The original actual interest rate calculation of financial assets.

After the impairment loss is recognized for the held-to-maturity investment, if there is objective evidence that the value of the held-to-maturity investment has been restored, and objectively and after the confirmation of the loss,

If the credit rating of the debtor has been increased, the previously recognized impairment loss is reversed and included in the current profit and loss.

After the impairment of the held-to-maturity investment, the interest income is recognized as the interest rate based on the discount rate used to discount the future cash flow when the impairment loss is determined.

B. Impairment test of available-for-sale financial assets

On the balance sheet, the Japanese company analyzes the impairment of available-for-sale financial assets to determine whether the fair value of the financial assets continues to decline. usually,

If the fair value of the available-for-sale financial assets has fallen by 50% or more relative to the cost, or the continuous decline has reached or exceeded 12 months,

After comprehensive consideration of various relevant factors, it is expected that this downward trend is non-temporary, and it can be considered that the available-for-sale financial assets have been impaired and the impairment loss is recognized.

If the available-for-sale financial assets are impaired, when the impairment loss is recognized, the accumulated losses arising from the decline in the fair value directly included in the owner's equity are transferred out.

Impairment losses on assets.

Whether the financial assets of available-for-sale debt instruments are impaired can be analyzed and judged by reference to the above-mentioned available-for-sale equity instrument investments.

Impairment losses arising from investments in available-for-sale equity instruments may not be reversed through profit or loss.

After the financial assets available for sale are impaired, the interest income is calculated as the interest rate based on the discount rate used to discount the future cash flows when determining the impairment loss.

Confirmation.

For the available-for-sale debt instruments that have been recognized for impairment losses, the fair value has increased in the subsequent accounting period and objectively occurred after confirmation of the original impairment loss

Relevant, the previously recognized impairment loss is reversed and included in the current profit and loss.

(9) Method for determining the fair value of financial assets and financial liabilities

The Company measures the fair value of the relevant assets or liabilities at the price of the major market. If there is no major market, the Company measures the relevant assets at the most favorable market price or

The fair value of the liability.

The main market refers to the market with the largest transaction volume and the most active trading of related assets or liabilities; the most favorable market refers to the consideration of transaction costs and transportation costs,

A market that can sell the underlying assets at the highest amount or transfer the related liabilities at the minimum amount. The company adopts market participants to realize the pricing of the assets or liabilities.

The assumptions used to maximize its economic benefits.

1 valuation technique

The company adopts valuation techniques that are applicable in the current period and have sufficient data and other information to support it. The valuation techniques used mainly include market law and income method.

And cost method. The Company measures the fair value using a method consistent with one or more of the valuation techniques, and uses various valuation techniques to measure the fair value.

For the reasonableness of the valuation results, the amount that best represents the fair value in the current period is taken as the fair value.

In the application of valuation techniques, the Company prioritizes the use of relevant observable inputs, only if the relevant observable inputs are not available or are not practicable.

Use unobservable input values. Observable input values ​​are the input values ​​that can be obtained from market data. This input value reflects the market participants’

Assumptions used in pricing liabilities. Unobservable input values ​​are input values ​​that cannot be obtained from market data. The input value is based on the available market participants.

The best information obtained from the assumptions used in pricing related assets or liabilities is obtained.

2 fair value hierarchy

The company divides the input value used in fair value measurement into three levels, and first uses the first level input value, then the second level input value, and finally uses

The third level is the input value. The first level input value is an unadjusted quote for the same asset or liability that can be obtained on the measurement date in an active market. The second level input value is

Inputs that are directly or indirectly observable for related assets or liabilities, except for the first level of input. The third level input value is the unobservable input value of the relevant asset or liability.

11. Accounts receivable

(1) Receivables with significant single amount and provision for bad debts separately

Judgment basis or amount standard for significant single amount The company will have accounts receivable of more than 5 million yuan, and other receivables of more than 1 million yuan.
The amount of the individual item is significant.
For receivables with significant single amount, the impairment test is carried out separately. Objective
The accrual method of single significant amount and single provision for bad debts. If the evidence shows that it has been impaired, the present value of future cash flow is lower than its present value.
The difference between the book value, the impairment loss is recognized, and the corresponding bad debts are accrued accordingly
Ready.


(2) Receivables with provision for bad debts according to the combination of credit risk characteristics

Combination name bad debt preparation accrual method


In the portfolio, the aging analysis method is used to make provision for bad debts:

√Applicable □Not applicable

Aging account receivables accrual ratio Other receivables accrual ratio
Within 1 year (including 1 year) 5.00% 5.00%
1-2 years 10.00% 10.00%
2-3 years 20.00% 20.00%
3-4 years 40.00% 40.00%
4-5 years 80.00% 80.00%
5 years or more 100.00% 100.00%


In the portfolio, the provision for bad debts is made using the balance percentage method:

□Applicable √Not applicable

In the portfolio, other methods are used to make provision for bad debts:

□Applicable √Not applicable

(3) Receivables with insignificant single amount but with separate provision for bad debts

For receivables that are not significant in the individual amount but have objective evidence that they have been impaired
Reasons for single provision for bad debts, the provision for bad debts based on the aging analysis method cannot reflect the actual situation.
The company conducts impairment test separately
Provision for bad debts is recognized based on the difference between the present value of future cash flows and its carrying amount.
Loss, and accordingly make provision for bad debts accordingly


12. Inventory

Does the company need to comply with disclosure requirements for specific industries?

no

(1) Classification of inventory

Inventories refer to finished products or commodities held by the company for sale in daily activities, in-process products in the production process, in the production process or in the provision of labor services.

Materials and materials, including raw materials, engineering construction, inventory goods, turnover materials, etc.

(2) Valuation method for issuing inventory

The company's inventory is issued using the weighted average method.

(3) Inventory system

The company's inventories are in perpetual inventory system, and are inventoried at least once a year. The profit and loss are included in the current year's profit and loss.

(4) Construction contract accounting method

1 The calculation and report of the construction contract are listed: the construction contract project is based on the accumulated cost incurred and the accumulated recognized gross profit (loss) minus the amount of the settlement price.

Price. Costs are calculated at actual cost, including direct material costs, direct labor costs, overhead costs, other direct costs, and related construction costs. Cumulative single contract engineering

The incurred costs and the accumulated confirmed gross profit (loss) exceed the amount of the settled settlement price as inventory - construction; if the individual contract works have been settled

The amount of the price that exceeds the accumulative cost incurred and the accumulated recognized gross profit (loss) is classified as advance receipt.

2 The method for determining the completion schedule of the construction contract: the proportion of the cumulative completed workload to the estimated total workload of the contract is used as the method for determining the completion schedule of the construction contract.

3 Estimated contract losses: At the end of each year or the end of the interim reporting period, the company will estimate the total cost of the contract for the project with the estimated total contract cost exceeding the estimated total contract revenue.

The difference between the portion exceeding the estimated total contract revenue and the recognized loss of the project is accrued for the estimated contract loss.

(5) Accrual method for inventory depreciation reserve

When the cost of inventories is higher than its net realizable value, the provision for impairment of inventories is recognised in profit or loss for the current period.

In determining the net realizable value of inventories, based on reliable evidence obtained, and considering the purpose of holding the inventories and the impact of events after the balance sheet date.

1Inventories directly used for sale, such as finished goods, commodities and materials for sale, in the normal production and operation process, the estimated selling price of the inventory minus the estimated sales fee

The net realizable value is determined by the amount after the relevant taxes and fees. The inventory held for the execution of a sales contract or a labor contract, based on the contract price as its net realizable value

The basis of quantity; if the quantity held in inventory is more than the quantity ordered by the sales contract, the net realizable value of the excess inventory is measured based on the general sales price. For sale

Materials, etc., based on market prices as the basis for measurement of their net realizable value.

2 Inventories of processed materials are required. In the normal production and operation process, the estimated selling price of the finished products produced is reduced to the estimated cost and estimated cost of completion.

The net selling value is determined by the amount of sales expenses and related taxes. If the net realizable value of the finished product produced by it is higher than the cost, the material is measured at cost;

If the decrease in the price of the material indicates that the net realisable value of the finished product is lower than the cost, the material is measured at the net realisable value, and the provision for decline in value of the inventory is made based on the difference.

3 Inventory depreciation reserves are generally accrued according to individual inventory items; for a large number of inventories with low unit prices, they are accrued according to the inventory category.

4 On the balance sheet date, if the influencing factors of the previously written down inventory value have disappeared, the amount of the write-down will be restored, and the amount of the provision for the inventory depreciation that has been accrued

The amount transferred back is included in the current profit and loss.

(6) Amortization method of turnover materials

1 Amortization method of low-value consumables: a one-off method is adopted when it is used.

2 Amortization method of packaging: a one-off method is adopted when it is used.

13. Holding assets for sale

(1) Classification of non-current assets or disposal groups held for sale

The Company classifies non-current assets or disposal groups that meet the following conditions into holding categories for sale:

1 According to the practice of selling such assets or disposal groups in similar transactions, they can be sold immediately under current conditions;

2 The sale is highly probable, that is, the company has already made a resolution on a sale plan and obtained a certain purchase commitment, and the sale is expected to be completed within one year. Relevant regulations

It has been approved if it is approved by the relevant authorities or regulatory authorities of the company.

The non-current assets or disposal groups acquired by the Company for resale meet the requirements of “expected sales will be completed within one year” on the acquisition date, and short-term (usually 3

In the month of the month, it is very likely that the other conditions for holding the category for sale are met, and the company divides it into the held for sale category on the acquisition date.

The company loses control of the subsidiary due to the sale of the investment in the subsidiary, etc., regardless of whether the company retains part of the equity investment after the sale, the proposed sale

When the investment in a subsidiary meets the conditions for holding the category for sale, the subsidiary's investment will be divided into holdings for sale in the individual financial statements of the parent company.

All financial assets and liabilities of subsidiaries are classified as held for sale in the financial statements.

(2) Measurement of non-current assets or disposal groups held for sale

The investment real estate adopting the fair value model for subsequent measurement, the biological assets measured by the net amount after the fair value minus the selling expenses, and the capital formed by the employee compensation

Production, deferred income tax assets, financial assets regulated by relevant accounting standards for financial instruments, and rights arising from insurance contracts regulated by relevant accounting standards for insurance contracts

Measurements apply to other relevant accounting standards.

When the initial measurement or re-measurement of non-current assets or disposal groups held for sale on the balance sheet date, the carrying amount is higher than the fair value less costs of disposal

After deducting the book value to the net amount of the fair value less the selling expenses, the amount of the write-down is recognized as the asset impairment loss, which is included in the current profit and loss, and is accrued

Provision for impairment of assets sold.

Non-current assets or disposal groups are no longer continuing to be classified as held for sale or for non-current assets from holdings for sale because they no longer meet the conditions for holding the category for sale.

When the group is removed, it is measured as follows:

1 The book value before being classified as held for sale is adjusted according to the depreciation, amortization or impairment that should be confirmed if it is not classified as held for sale.

Amount

2 recoverable amount.

(3) Presentation

The Company distinguishes between the non-current assets held for sale or the assets held in the disposal group for sale separately from other assets in the balance sheet, which is different from other liabilities.

List the liabilities in the disposal group held for sale. The non-current assets held for sale or the assets in the disposal group held for sale are not related to the liabilities in the disposal group held for sale.

The offsets are presented as current assets and current liabilities, respectively.

14. Long-term equity investment

The company's long-term equity investment includes equity investments that have significant control over the investee, and equity investments in joint ventures. The company is able to

If the investment unit exerts significant influence, it shall be an associate of the company.

(1) Determining the basis for joint control and significant influence on the invested entity

Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement, and the relevant activities of the arrangement must be agreed upon by the participants sharing control.

Can make decisions. When judging whether there is joint control, first determine whether all participants or groups of participants collectively control the arrangement, if all participants or a group of participants

In the event that the parties must act in concert to determine the relevant activities of an arrangement, it is considered that all parties or a group of participants collectively control the arrangement. Secondly, judge the relevant arrangement

Whether the decision of the activity must be unanimously agreed by the parties who collectively control the arrangement. If there are two or more combinations of participants, you can collectively control an item

Arranged does not constitute joint control. When judging whether there is joint control, the protective rights enjoyed are not considered.

Significant influence refers to the investing party's power to participate in the decision-making of the financial and operating policies of the invested entity, but it cannot control or jointly control this with other parties.

The formulation of these policies. When determining whether it can exert significant influence on the investee, consider that the investor directly or indirectly holds the voting shares of the investee and the investor

And the impact of the current potential voting rights held by other parties after the assumption of conversion to the equity of the investee unit, including the current period of the issuance of the invested entity

The impact of swaps, share options and convertible corporate bonds.

When the company directly or through a subsidiary indirectly owns 20% (including 20%) or more of the voting shares of the invested company, it is generally considered to have

There is a significant impact unless there is clear evidence that it cannot participate in the production and operation decisions of the invested entity in this case and does not have a significant impact.

(2) Initial investment cost determination

1. For long-term equity investment formed by business combination, the investment cost shall be determined according to the following provisions:

A. A business combination under the same control, the merger party pays cash, transfers non-cash assets or assumes the debt as the merger consideration, according to the merged party on the merger date.

The share of the book value of the owner's equity in the final controlling party's consolidated financial statements is taken as the initial investment cost of the long-term equity investment. Initial investment cost of long-term equity investment

Adjusting the capital reserve with the difference between the cash paid, the transferred non-cash assets and the book value of the debts assumed; if the capital reserve is insufficient to offset, the adjustment is retained.

Benefit

B. For a business combination under the same control, the combining party shall issue the equity securities as the merger consideration, and shall be in the final control according to the owner's equity of the merged party on the merger date.

And the share of the book value in the financial statements is the initial investment cost of the long-term equity investment. According to the total par value of the issued shares as the share capital, the initial equity investment

The difference between the investment cost and the total par value of the shares issued shall be adjusted to the capital reserve; if the capital reserve is insufficient to offset, the retained earnings shall be adjusted;

C. Business combination not under the same control, the assets paid, the liabilities incurred or assumed, and the issued equity certificates on the purchase date to obtain control of the purchased party

The fair value of the bonds is determined as the initial cost of the long-term equity investment. The merger party is the audit, legal service, evaluation consultation, etc.

The fee and other related management expenses are recognised in profit or loss when incurred.

1. In addition to the long-term equity investment formed by the business combination, the long-term equity investment obtained by other means shall be determined according to the following provisions:

A. The long-term equity investment obtained by paying cash is based on the actual purchase price as the investment cost. Initial investment costs include direct acquisition of long-term equity investments

Related expenses, taxes and other necessary expenses;

B. The long-term equity investment obtained by issuing equity securities is based on the fair value of the issued equity securities as the initial investment cost;

C. Long-term equity investment obtained through the exchange of non-monetary assets, if the exchange has commercial substance and the fair value of the assets exchanged or exchanged assets can be reliably measured,

The fair value of the assets and related taxes are used as the initial investment cost, and the difference between the fair value of the assets and the book value is included in the current profit and loss;

If the above two conditions are met at the same time, the book value of the assets exchanged and the related taxes and fees will be used as the initial investment cost.

D. The long-term equity investment obtained through debt restructuring, based on the fair value of the acquired equity as the initial investment cost, between the initial investment cost and the book value of the debt

The difference is included in the current profit and loss.

(3) Subsequent measurement and profit and loss confirmation method

The long-term equity investment that the company can control over the investee is accounted for using the cost method; the long-term equity investment of associates and joint ventures is equity method

Count.

1 cost method

Long-term equity investment accounted for using the cost method, adjusting the cost of long-term equity investment when adding or recovering investment; the cash dividend or profit declared by the invested entity is indeed

Think of current investment income.

2 equity method

For long-term equity investments accounted for under the equity method, the general accounting treatment is:

The investment cost of the company's long-term equity investment is greater than the fair value of the identifiable net assets of the investee when investing, and the initial period of long-term equity investment is not adjusted.

Investment cost; if the initial investment cost of a long-term equity investment is less than the fair value of the identifiable net assets of the investee, the difference is included in the current profit and loss.

At the same time adjust the cost of long-term equity investment.

The Company recognizes the investment income and other comprehensive income according to the share of net profit and loss and other comprehensive income realized by the investee that should be shared or should be shared.

The book value of the entire long-term equity investment; the company calculates the portion to be enjoyed according to the profit or cash dividend declared by the invested entity, and reduces the long-term equity investment accordingly.

Book value; other changes in the owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investee, adjusting the book value of the long-term equity investment and

Included in the owner's equity. When confirming the share of the net profit or loss of the investee, the fair value of the identifiable net assets of the investee at the time of obtaining the investment is based on

The net profit of the invested company is adjusted and confirmed. If the accounting policies and accounting periods adopted by the invested entity are inconsistent with the company, it shall be in accordance with the accounting policies of the company.

And the accounting period adjusts the financial statements of the invested entity, and confirms the investment income and other comprehensive income. Between the company and its joint ventures and joint ventures

The unrealized internal transaction gains and losses that occur are offset against the portion attributable to the Company in proportion to the share, and the investment gains and losses are recognized on this basis. The company and the invested

If the unrealized internal transaction losses incurred by the unit are asset impairment losses, they shall be fully confirmed.

If it can exert significant influence on the investee or implement joint control due to additional investment, etc., but does not constitute control, the fair value of the original equity investment shall be added.

The sum of the newly added investment costs is used as the initial investment cost calculated by the equity method. If the original equity investment is classified as an available-for-sale financial asset, its fair value and

The difference between the book value and the accumulated fair value of the original comprehensive income should be transferred to the current profit and loss accounted for under the equity method.

If the joint control or significant influence on the investee is lost due to the disposal of part of the equity investment, etc., the remaining equity after disposal shall be measured at fair value, and it shall be mourned.

The difference between the fair value and the book value on the date of loss of joint control or significant influence is recognised in profit or loss. Other comprehensive investment confirmed by the equity method using the equity method

The income is calculated on the same basis as the investee directly disposes of the relevant assets or liabilities when the equity method is terminated.

15. Investment real estate

Investment real estate measurement model

Not applicable

16. Fixed assets

(1) Confirmation conditions

When the fixed assets meet the following conditions at the same time, they are confirmed according to the actual cost at the time of acquisition: 1 The economic benefits related to the fixed assets are likely to flow into the enterprise. 2 solid

The cost of a fixed asset can be reliably measured. Subsequent expenditures incurred on fixed assets are included in the cost of fixed assets in accordance with the conditions for recognition of fixed assets;

The recognition condition is included in the current profit and loss when it occurs.

(2) Depreciation method

Category Depreciation method Depreciation period Residual value Rate Annual depreciation rate
House and Building Annual Average Method 20-40 5 4.75%-2.38%
Structure Annual Average Method 10-20 5 9.50%-4.75%
Production and construction equipment Annual average method 5-10 5 19.00%-9.50%
Transportation Equipment Annual Average Method 5-8 5 19.00%-11.88%
Office equipment Annual average method 3-5 5 31.67%-19.00%


For fixed assets that have been withdrawn for impairment, the provision for impairment of fixed assets is deducted when depreciation is provided.

At the end of each year, the company reviews the useful life, estimated net residual value and depreciation method of fixed assets. Estimated life expectancy and original estimate

If the count is different, adjust the service life of the fixed assets.

(3) Recognition basis, valuation and depreciation method for financing leased fixed assets

When the leased fixed assets transfer substantially all the risks and rewards related to the assets, the company confirms that the lease of the fixed assets is a finance lease. Financing lease

The cost of fixed assets is determined by the lower of the fair value of the leased assets on the lease start date and the present value of the minimum lease payments. Fixed assets used for financing leases

Depreciation of leased assets is accrued based on the depreciation policy consistent with its own fixed assets. If it is reasonable to determine that the leasehold asset will be acquired at the expiration of the lease term,

Depreciation is provided within the useful life; if it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term, the shorter of the lease term and the useful life of the leased asset

Depreciation is provided between the rooms.

17. Construction in progress

(1) Construction in progress is accounted for by project classification.

(2) Standards and time points for the construction in progress to be transferred to fixed assets

The total amount of expenditure incurred by the construction in progress before the construction of the asset reaches the expected usable status is recorded as the value of the fixed assets. Including construction costs, machine design

Prepare the original price, other necessary expenses incurred to bring the construction in progress to the expected usable condition, and special loan facilities for the project before the assets are ready for their intended use.

Borrowing costs incurred and borrowing costs incurred for general borrowings incurred. The company will transfer the construction in progress to the solid state when the engineering installation or construction is completed and ready for use.

Fixed assets. The fixed assets constructed that have reached the intended usable condition but have not yet been processed for final accounts shall be based on the project budget, from the date of the scheduled usable status.

The cost of construction or the actual cost of the project shall be transferred to the fixed assets at the estimated value, and the depreciation of the fixed assets shall be accrued according to the depreciation policy of the fixed assets of the Company.

After the calculation, the original temporary valuation value is adjusted according to the actual cost, but the depreciation amount that has been accrued is not adjusted.

18. Borrowing costs

(1) Recognition principle and capitalization period of capitalization of borrowing costs

The borrowing costs incurred by the Company for the acquisition, construction or production of assets that are directly attributable to the capitalization conditions are capitalized and included in the relevant assets when the following conditions are met.

Production cost:

1 Asset expenditure has occurred;

2 borrowing costs have occurred;

3 The acquisition, construction or production activities necessary to bring the assets to the intended usable state have begun.

Other interest on borrowings, discounts or premiums and exchange differences are recognised in profit or loss in the period in which they are incurred.

Capitalization of borrowing costs is suspended if the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or production process and the interruption period lasts for more than 3 months.

When the acquisition, construction or production of assets eligible for capitalization meets the intended use or sale status, the capitalization of the borrowing costs is stopped; the borrowing costs incurred in the future

It is recognized as an expense in the period in which it occurs.

(2) Calculation method of capitalization rate of borrowing costs and capitalization amount

For the purpose of purchasing or constructing or producing special assets that are eligible for capitalization, the interest expenses actually incurred in the current period of special loans shall be deducted from the borrowings that have not yet been used.

The amount of interest earned by the deposit into the bank or the investment income obtained from the temporary investment is determined as the capitalized amount of the interest expense of the special loan.

If the acquisition, construction or production of assets eligible for capitalization occupies general borrowings, the amount of interest that should be capitalized for general borrowings exceeds the specific borrowings by accumulated assets.

The weighted average of the asset expenditures is multiplied by the capitalization rate of the general borrowings used to calculate the amount of interest that should be capitalized for general borrowings. Capitalization rate based on general borrowing

The weighted average interest rate is calculated and determined.

19. Biological assets

20. Oil and gas assets

21. Intangible assets

(1) Valuation method, service life, impairment test

(1) Valuation method of intangible assets

It is accounted for at the actual cost at the time of acquisition.

(2) Life and amortization of intangible assets

1 Estimated service life of intangible assets with limited service life:

Project estimated service life
Land use rights 50 years legal use rights
Computer software — to determine the useful life of a period that brings economic benefits to the company
Patent


At the end of each year, the company reviews the useful life and amortization method of intangible assets with a limited useful life. After review, the service life and amortization method of intangible assets at the end of the period are not different from previous estimates.

2 If it is impossible to foresee that the intangible assets bring economic benefits to the enterprise, it is regarded as an intangible asset with an indefinite useful life. For intangible assets with uncertain service life, the company reviews the service life of intangible assets with uncertain service life at the end of each year. If it is still uncertain after re-review, it conducts impairment test on the balance sheet date.

3 amortization of intangible assets

For intangible assets with a finite useful life, the Company determines its useful life when it is acquired. It is amortized using the straight-line method within the useful lives. The amortisation amount is recognised in profit or loss in profit or loss. The specific amortization amount is the amount after deducting the estimated residual value from its cost. Intangible assets that have been withdrawn for impairment are also deducted from the accrued amount of impairment provision for intangible assets that have been withdrawn, with a residual value of zero. Except in the following cases: a third party undertakes to purchase the intangible asset at the end of its useful life or may obtain information on the estimated residual value based on the active market, and the market is likely to exist at the end of the useful life of the intangible asset.

Intangible assets with an indefinite useful life are not amortized. At the end of each year, the service life of intangible assets with uncertain service life is reviewed. If there is evidence that the service life of intangible assets is limited, the service life is estimated and the system is reasonably amortized within the estimated service life.

(2) Internal research and development expenditure accounting policy

1 The Company will use the information and related preparatory activities for further development activities as the research stage, and the expenditures of the intangible assets research phase will be included in the current profit and loss when incurred.

2 Development activities carried out after the company has completed the research phase as a development stage.

Intangible assets can only be recognized when the development phase expenditures meet the following conditions:

A. It is technically feasible to complete the intangible asset to enable it to be used or sold;

B. has the intent to complete the intangible asset and use or sell it;

C. The way in which intangible assets generate economic benefits, including the ability to prove that the products produced using the intangible assets exist in the market or the intangible assets exist in the market, and the intangible assets will be used internally, which can prove their usefulness;

D. There is sufficient technical, financial and other resources to support the development of the intangible asset and the ability to use or sell the intangible asset;

E. Expenditure attributable to the development phase of the intangible asset can be reliably measured. 22. Long-term asset impairment

(1) Long-term equity investment impairment test method and accounting treatment method

On the balance sheet date, the Company conducts item-by-item inspections on long-term equity investments, and judges whether there is any indication of impairment of long-term equity investments based on various changes in the operating policies, legal environment, market demand, industry and profitability of the investee. When the recoverable amount of the long-term equity investment is lower than the book value, the difference between the recoverable amount and the book value of the long-term equity investment is taken as the provision for impairment of the long-term equity investment. Once the asset impairment loss is confirmed, it will not be transferred back in the future accounting period.

(2) Impairment test method and accounting treatment method for fixed assets

The Company judges each fixed asset on the balance sheet date. When there is any indication of impairment, the estimated recoverable amount is less than its carrying amount, the carrying amount is reduced to the recoverable amount, and the amount of write-down is recognized as asset impairment. The loss is included in the current profit and loss, and the corresponding asset impairment provision is made. Once the asset impairment loss is confirmed, it will not be transferred back in the future accounting period. When there are the following signs, the provision for impairment is made in full on the fixed assets individual project:

1 Fixed assets that are not used for a long time and will not be used for the foreseeable future, and have no transfer value;

2 Fixed assets that are no longer usable due to technological advancement;

3 Although fixed assets are still available, they will generate a large number of fixed assets that are not qualified;

1. Fixed assets that have been damaged so that they no longer have value in use and transfer value;

2. Other fixed assets that are virtually no longer able to bring economic benefits to the company.

(3) Impairment test method and accounting treatment method for construction in progress

The Company conducts a comprehensive inspection of the construction in progress on the balance sheet date. If there is evidence that the construction in progress has been impaired and the estimated recoverable amount is less than its carrying amount, the carrying amount is reduced to the recoverable amount. The amount of the asset is recognized as asset impairment loss, which is included in the current profit and loss, and the corresponding asset impairment provision is made. Once the asset impairment loss is confirmed, it will not be transferred back in the future accounting period. Impairment testing of construction in progress in the presence of one or more of the following:

1 Construction in progress that has been suspended for a long time and is not expected to restart in the next three years;

2 The projects built are backward in terms of performance and technology, and the economic benefits brought to the enterprise are highly uncertain;

3 Other circumstances are sufficient to prove that the construction in progress has been impaired.

(4) Intangible assets impairment test method and accounting treatment method

When the recoverable amount of the intangible asset is lower than its carrying amount, the carrying amount of the asset is reduced to the recoverable amount. The amount of the write-down is recognized as the impairment loss of the asset, which is included in the current profit and loss, and the corresponding intangible assets are deducted. Value preparation. Once the impairment loss of an intangible asset is recognized, it will not be reversed in the subsequent accounting period. Impairment testing of intangible assets in the event of one or more of the following:

1 The intangible assets have been replaced by other new technologies, etc., which have significantly adversely affected the ability of enterprises to create economic benefits;

2 The market price of the intangible asset fell sharply in the current period and may not rise during the remaining years;

3 Other circumstances sufficient to indicate that the book value of the intangible asset has exceeded the recoverable amount.

(5) Goodwill impairment test

Goodwill arising from a business combination is tested for impairment at least at the end of each year. When the Company conducts impairment test on the relevant asset group or asset group combination containing goodwill, if there is any sign of impairment of the asset group or asset group combination related to goodwill, the following steps are taken:

First, the asset group or asset group combination that does not contain goodwill is tested for impairment, the recoverable amount is calculated, and compared with the book value of the relevant assets, the corresponding impairment is confirmed.

Loss; then the impairment test is performed on the combination of asset groups or asset groups that contain goodwill, and the book value of these related asset groups or asset group combinations is compared (including

The difference between the book value of the goodwill allocated and its recoverable amount, if the recoverable amount of the relevant asset group or asset group combination is lower than its book value, the difference is

Confirm the impairment loss. The amount of impairment loss is first deducted from the book value of the goodwill allocated to the asset group or the combination of asset groups;

The book value of other assets other than goodwill is proportional to the book value of other assets.

23. Long-term deferred expenses

The long-term deferred expenses account for all expenses that have occurred in the company but should be borne by the current and future periods with amortization period of more than one year.

The Company's long-term deferred expenses are amortized evenly over the beneficial period. The amortization period of each expense is as follows:

Project amortization period
Fixed assets improvement leases leased by operating leases Operating lease leased assets


24. Employee compensation

(1) Accounting treatment method for short-term compensation

Employee compensation refers to various forms of remuneration or compensation given by the company to obtain services provided by employees or to terminate labor relations. Employee benefits include short-term compensation, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the company to spouses, children, dependents, deceased employee survivors and other beneficiaries are also employee benefits.

1 Basic salary of employees (salary, bonus, allowance, subsidy)

During the accounting period in which employees provide services, the Company recognizes the actual short-term remuneration as a liability and recognises it in profit or loss. Other accounting standards require or allow for inclusion in asset costs.

2 employee welfare fee

The employee benefit expenses incurred by the Company are included in the current profit and loss or related asset costs based on the actual amount incurred at the time of actual occurrence. If the employee welfare fee is non-monetary benefit, it shall be measured at fair value.

3 Social insurance premiums, work injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident fund, as well as labor union funds and employee education funds

The company's medical insurance premiums, work injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident fund, as well as labor union funds and employee education funds drawn according to regulations, during the accounting period in which employees provide services, according to regulations The accrual basis and the accrual ratio calculation determine the corresponding employee remuneration amount, and confirm the corresponding liabilities, which are included in the current profit and loss or related asset costs.

4 short-term paid absences

When the employees provide services to increase their future rights to paid absenteeism, they recognize the employee benefits related to the accumulation of paid absences and measure the expected payment amount increased by accumulating unexercised rights. The Company recognizes employee benefits related to non-cumulative paid absences during the accounting period in which employees actually absent.

5 short-term profit sharing plan

If the profit sharing plan meets the following conditions at the same time, the company confirms the relevant employee benefits payable:

A. The enterprise has a statutory obligation or a definitive obligation to pay employee compensation due to past events;

B. The amount of employee compensation payable due to the profit sharing plan can be reliably estimated. (2) Accounting treatment of post-employment benefits

1Set the deposit plan

During the accounting period in which employees provide services, the Company recognizes the amount of the deposits calculated based on the defined contribution plan as liabilities and is included in the current profit and loss or related asset costs.

According to the defined contribution plan, it is expected that the entire amount of the deposit should not be paid within 12 months after the end of the annual reporting period in which the employee provides the relevant services. The company refers to the corresponding discount rate (based on the balance sheet date and setting The maturity of the benefit plan is determined by the market yield of the treasury bonds matching the currency or the high-quality corporate bonds in the active market. The total amount payable is measured at the discounted amount.

2 set benefit plan

A. Determine the present value of the defined benefit plan obligation and the current service cost

According to the expected cumulative welfare unit method, the unbiased and consistent actuarial assumptions are used to estimate the relevant demographic variables and financial variables, measure the obligations arising from the defined benefit plan, and determine the attribution period of the relevant obligations. The company will set the benefit plan according to the corresponding discount rate (determined according to the market yield of the national debt in the balance sheet date and the currency of the defined benefit plan or the high-quality corporate bond in the active market). The obligation is discounted to determine the present value of the defined benefit plan obligation and the current service cost.

B. Confirm the net debt or net assets of the defined benefit plan

If there are assets in the defined benefit plan, the company will recognize the deficit or the surplus formed by the present value of the defined benefit plan obligation minus the fair value of the defined benefit plan assets as a defined benefit plan net debt or net assets.

If there is a surplus in the defined benefit plan, the Company measures the net assets of the defined benefit plan by the lower of the surplus and the asset cap of the defined benefit plan.

C. Determine the amount that should be included in the cost of assets or current profit and loss

Service costs, including current service costs, past service costs, and settlement gains or losses. Other service costs are included in the current profit and loss, except for other current accounting standards that require or allow the current service costs to be included in the cost of assets.

The net interest on the net liabilities or net assets of the defined benefit plan, including the interest income of the planned assets, the interest expense of the defined benefit plan obligation and the interest affected by the asset cap, are included in the current profit and loss.

D. Determine the amount that should be included in other comprehensive income

Re-measure changes in the net liabilities or net assets of the defined benefit plan, including:

(a) actuarial gains or losses, that is, an increase or decrease in the present value of a previously defined defined benefit plan obligation as a result of actuarial assumptions and experience adjustments;

(b) the return on the planned assets, net of the amount of interest included in the net interest or net assets of the defined benefit plan;

(c) Changes in the impact of the asset cap, net of the amount of net interest included in the net benefit or net assets of the defined benefit plan.

The above changes in the net liabilities or net assets of the defined benefit plan are directly included in other comprehensive income, and are not allowed to be transferred back to profit or loss in subsequent accounting periods, but the company can transfer these in other comprehensive income within the scope of equity. The amount confirmed.

(3) Accounting treatment of dismissal benefits

If the Company provides termination benefits to employees, the employee compensation liabilities arising from the termination of benefits will be recognized as soon as possible and will be included in the current profit and loss:

1 The enterprise cannot unilaterally withdraw the dismissal benefits provided by the termination of the labor relations plan or the reduction proposal;

2 When the company confirms the costs or expenses associated with the restructuring involving the payment of the termination benefits.

If the dismissal benefit is not expected to be fully paid within 12 months after the end of the annual reporting period, refer to the corresponding discount rate (based on the balance sheet date and the defined benefit plan period and the currency of the national debt or active market The market yield of high-quality corporate bonds is determined.) The amount of the dismissal benefits is discounted, and the employee's remuneration is measured at the discounted amount.

(4) Accounting treatment of other long-term employee benefits

1 in accordance with the conditions of the defined contribution plan

If the other long-term employee benefits provided by the Company to the employees meet the conditions of the defined contribution plan, the total amount payable shall be measured at the discounted amount.

2 in accordance with the conditions of the defined benefit plan

At the end of the reporting period, the Company recognized the employee compensation costs arising from other long-term employee benefits as the following components:

A. Service cost;

B. Net interest on net liabilities or net assets of other long-term employee benefits;

C. Re-measure the changes in net liabilities or net assets of other long-term employee benefits.

In order to simplify the relevant accounting treatment, the total net amount of the above projects is included in the current profit and loss or related asset costs. 25. Estimated liabilities

(1) Confirmation criteria for estimated liabilities

If the obligations related to the contingent events meet the following conditions, the company will recognize them as estimated liabilities:

1 The obligation is the current obligation of the company;

2 The performance of this obligation is likely to cause economic benefits to flow out of the company;

3 The amount of this obligation can be reliably measured.

(2) Measurement method of estimated liabilities

Estimated liabilities are initially measured in accordance with the best estimate of the expenditure required to perform the relevant current obligations, taking into account factors such as risks, uncertainties and time value of money related to the event. The book value of the estimated liabilities is reviewed on each balance sheet date. If there is conclusive evidence that the book value does not reflect the current best estimate, the book value will be adjusted according to the current best estimate.

26. Share-based payment

27. Other financial instruments such as preferred stocks and perpetual bonds

28. Income

Does the company need to comply with disclosure requirements for specific industries?

no

(1) Sales of goods revenue

The company has transferred the main risks and rewards of ownership of the goods to the purchaser; the company neither retains the continuation of management rights associated with ownership, nor does it exercise effective control over the goods sold; the amount of income can be reliably measured; The economic benefits are likely to flow into the enterprise; when the relevant costs that have occurred or will occur can be reliably measured, the realization of the sales revenue of the goods is confirmed.

(2) Providing labor income

If the results of the labor service transactions on the balance sheet date can be reliably estimated, the labor income will be recognized by the percentage of completion method. The completion schedule of the labor service transaction is determined based on the measurement of the completed work.

The results of providing labor service transactions can be reliably estimated to mean that: A, the amount of income can be reliably measured; B, the relevant economic benefits are likely to flow into the enterprise; C, the completion degree of the transaction can be reliably determined; D, the transaction has been The costs incurred and to be incurred can be reliably measured.

The company determines the total amount of labor service income according to the contract or agreement price received or receivable, except that the contract or agreement price received or receivable is not fair. On the balance sheet date, the total amount of labor service income is multiplied by the completion progress, after deducting the accumulated labor income from the previous accounting period, and the labor income is recognized. At the same time, the estimated total cost of the labor service is multiplied by the completion progress minus the accumulated accounting period. The amount after the labor cost has been confirmed, and the current labor cost is carried forward.

If the results of labor service transactions on the balance sheet date cannot be reliably estimated, they shall be dealt with as follows:

1 If the labor costs incurred have been estimated to be compensated, the labor service income is recognized according to the amount of labor costs incurred, and the labor costs are carried forward at the same amount.

2 If the labor costs incurred have not been compensated, the labor costs incurred will be included in the current profit and loss, and the income from the provision of labor services will not be recognized.

(3) Income from the transfer of asset use rights

The economic benefits associated with the transaction are likely to flow into the enterprise. When the amount of income can be reliably measured, the amount of income from the transfer of the right to use the asset is determined in the following cases:

1 The amount of interest income shall be calculated and determined according to the time and actual interest rate of the use of the company's monetary funds by others.

2 The amount of royalty income shall be calculated and determined in accordance with the time and method of charging as stipulated in the relevant contract or agreement. 29. Government subsidies

(1) Judgment basis and accounting treatment method of government subsidies related to assets

Government grants acquired by the company for the purpose of purchasing or constructing or otherwise forming long-term assets are classified as government grants related to assets. The government grants related to assets are recognized as deferred income and are included in profit or loss in a reasonable and systematic manner over the period of use of the relevant assets. Government grants measured at nominal amounts are recognised directly in profit or loss. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful lives, the balance of the relevant deferred income that has not been allocated shall be transferred to the profit and loss of the current period of disposal of the assets.

(2) Judgment basis and accounting treatment method of government subsidies related to income

Government grants other than government grants related to assets are classified as government grants related to income. The government subsidies related to income are accounted for according to the following provisions:

If it is used to compensate the related costs or losses of the Company in the future period, it is recognized as deferred income, and is included in the current profit and loss in the period in which the related costs or losses are recognized;

If it is used to compensate the related costs or losses incurred by the Company, it shall be directly included in the current profit and loss.

For government subsidies that include both asset-related and income-related components, different parts are separately accounted for; if it is difficult to distinguish, the whole is classified as a government subsidy related to income.

Government grants related to the daily activities of the company are included in other income in accordance with the economic business. Government grants not related to the daily activities of the company are included in the non-operating income and expenditure.

30. Deferred income tax assets / deferred income tax liabilities

The company usually uses the balance sheet liability method to be taxable based on the temporary difference between the book value of the assets and liabilities on the balance sheet date and the tax base.

The temporary difference or the deductible temporary difference affects the income tax and recognizes the deferred income tax liabilities or deferred income tax assets. The company does not defer the income tax

Production and deferred income tax liabilities are discounted.

(1) Confirmation of deferred income tax assets

For the deductible temporary difference, the impact on the income tax is calculated based on the income tax rate of the expected reversal period, and the impact amount is recognized as deferred income tax assets, but it is likely to be deductible for deductible by the company. Temporary differences, deductible losses and future taxable income from tax credits are limited.

The impact of the deductible temporary difference arising from the initial recognition of assets or liabilities in the transactions or events with the following characteristics is not recognized as deferred income tax assets:

A. The transaction is not a business combination;

B. The transaction does not affect the accounting profit or the taxable income (or deductible loss).

The Company's deductible temporary differences related to investments in subsidiaries, associates and joint ventures, and the following two conditions, the amount of impact on income tax can only be recognized as deferred income tax assets:

A. Temporary differences are likely to be reversed in the foreseeable future;

B. It is likely that in the future, the taxable income will be used to offset the deductible temporary difference;

On the balance sheet date, if there is conclusive evidence that it is probable that sufficient taxable income will be available in the future to offset the deductible temporary differences, the deferred income tax assets not recognized in previous periods are recognised.

On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable that sufficient taxable income will not be available in the future to offset the benefits of deferred tax assets, the carrying amount of deferred tax assets is reduced. When it is probable that sufficient taxable income will be obtained, the amount of the write-down will be reversed.

(2) Confirmation of deferred income tax liabilities

All of the taxable temporary differences of the Company are measured at the income tax rate of the estimated reversal period, and the impact is recognized as deferred income tax liabilities, except in the following cases:

1 The effect of taxable temporary differences arising from the following transactions or events on income tax is not recognized as deferred income tax liabilities:

A. Initial confirmation of goodwill;

B. Initial recognition of an asset or liability arising from a transaction characterized by a transaction that is not a business combination and that does not affect accounting profits or taxable income or deductible losses.

2 The Company's taxable temporary differences related to investments in subsidiaries, joint ventures and joint ventures are generally recognized as deferred income tax liabilities, except for the following two conditions:

A. The company can control the time when temporary differences are reversed;

B. This temporary difference is likely to not be reversed in the foreseeable future.

(3) Recognition of deferred income tax liabilities or assets involved in a specific transaction or event

1 Deferred income tax liabilities or assets related to business combination

For the taxable temporary difference or deductible temporary difference arising from the combination of business combination under the same control, the related deferred income tax expense (or income) is generally adjusted Goodwill recognized in the middle.

2 Items directly included in the owner's equity

The current income tax and deferred income tax related to the transactions or events directly included in the owner's equity are included in the owner's equity. The impact of temporary differences on income tax The transactions or events included in the owner's equity include: other comprehensive income formed by changes in the fair value of available-for-sale financial assets, changes in accounting policies using retrospective adjustment methods or corrections to prior (important) accounting errors The retrospective restatement method adjusts the retained earnings at the beginning of the period, and includes the liability component and the equity component of the hybrid financial instrument, which is included in the owner's equity at initial recognition.

3 can make up for losses and tax credits

A. Reparable losses and tax credits generated by the company's own operations

The deductible loss refers to the loss made by the taxable income in the subsequent years as determined by the tax law. For unrepared losses (deductible losses) and tax credits that can be carried forward in the subsequent years in accordance with the tax law, they are treated as deductible temporary differences. When it is probable that sufficient taxable income will be obtained in the future period in which the recoverable loss or tax credit is expected to be utilized, the corresponding deferred income tax assets will be recognized to the extent that the taxable income is likely to be obtained. Income tax expense in the income statement.

B. Unrecoverable losses of compensable companies formed due to business combination

In the business combination, the company obtains the deductible temporary difference of the purchased party and does not confirm the conditions for confirming the deferred income tax assets on the purchase date. Within 12 months after the purchase date, if new or further information is obtained indicating that the relevant circumstances of the purchase date already exist, it is expected that the economic benefits of the temporary difference can be realized by the purchaser on the purchase date, and the relevant delivery is confirmed. Deferred income tax assets related to a business combination are recognized in profit or loss for the current period except for the above-mentioned circumstances.

4 Temporary differences in the formation of offsetting

In the preparation of the consolidated financial statements, the Company has consolidated the assets and liabilities by offsetting the unrealized internal sales gains and losses resulting in a temporary difference between the book value of the assets and liabilities in the consolidated balance sheet and the tax base of the taxpayer. The deferred income tax assets or deferred income tax liabilities are recognized in the table, and the income tax expense in the consolidated income statement is adjusted, except for the deferred income tax related to the transactions or events directly related to owners' equity and business combination.

5 Equity-settled share-based payment

If the tax law stipulates that the expenses related to the share-based payment are allowed to be deducted before tax, during the period in which the cost is recognized in accordance with the accounting standards, the company calculates the taxable basis based on the estimated amount of the pre-taxable deduction of the information obtained at the end of the accounting period. The temporary difference is recognized and the relevant deferred income tax is recognized if the conditions are confirmed. It is estimated that the amount of pre-tax deduction in the future period exceeds the cost related to the share-based payment recognized in accordance with the accounting standards, and the excess income tax effect should be directly included in the owner's equity.

31. Lease

(1) Accounting treatment method for operating lease

1 When the Company is the lessee of the operating lease, the rental expenses of the operating leases are recognised in profit or loss in the period in If the lessor provides a rent-free period, the company will allocate the total rent to the entire lease term without deduction of the rent-free period, on a straight-line basis or other reasonable method, and recognize the rental expenses and corresponding liabilities during the rent-free period. If the lessor bears certain expenses of the lessee, the balance of the rental expenses deducted by the company from the total rental expenses shall be apportioned during the lease term.

The initial direct costs are included in the current profit and loss. If the agreement stipulates or has a rent, it is included in the current profit and loss when it actually occurs.

2 When the Company acts as the lessor of the operating lease, the rental received is recognized as income over the lease term using the straight-line method. If the lessor provides a rent-free period, the lessor will allocate the total rent to the entire lease term without deducting the rent-free period, and allocate it on a straight-line basis or other reasonable method. The lessor also confirms the rental income during the rent-free period. If the lessee bears certain expenses, the balance of the rental income deducted from the total rental income of the company according to the fee shall be distributed during the lease term.

The initial direct costs are included in the current profit and loss. Capitalization of a large amount is included in the current profit and loss in the same period of the entire operating lease period on the same basis as the recognized rental income. If the agreement stipulates or has a rent, it is included in the current income when it actually occurs.

(2) Accounting treatment of financial leasing

1 When the company acts as the financial lease lessee, on the date of the lease term, the lower of the fair value of the leased asset and the present value of the minimum lease payment on the lease start date is the book value of the leased asset, and the minimum lease payment is As the recorded value of long-term payables, the difference is treated as unrecognized financing expenses. During the lease term, the actual interest rate method is used for apportionment in each period, which is recognized as the current financing expense and is included in the financial expenses.

The initial direct costs incurred are included in the value of the leased asset.

When depreciating the finance lease assets, the company adopts the depreciation policy consistent with its own depreciable assets, and the depreciation period is determined by the lease contract. If it can be reasonably determined that the company will acquire the ownership of the leased asset at the expiration of the lease term, the life of the leased asset at the beginning of the lease period is taken as the depreciation period; if it is not possible to reasonably determine whether the company can obtain the ownership of the leased asset after the expiration of the lease term, The shorter of the period and the life of the leased asset is used as the depreciation period.

2 When the company acts as the financial lessor, the sum of the minimum lease receivable amount and the initial direct cost on the lease beginning date is the book value of the finance lease receivables, which is included in the long-term receivables of the balance sheet. And record the unguaranteed residual value; the difference between the sum of the minimum lease receivable amount, the initial direct expense and the unguaranteed residual value and its present value is regarded as the unrealized financing income, and the actual interest rate method is adopted in each period of the lease term. It is recognized as rental income and is included in rental income/business income.

32. Other important accounting policies and accounting estimates

(1) Changes in important accounting policies

On April 28, 2017, the Ministry of Finance issued the “Accounting Standards for Business Enterprises No. 42 – Non-current Assets held for sale, disposal groups and termination of operations”, which will take effect on May 28, 2017. For non-current assets held for sale, disposal groups and termination operations on the date of the implementation of the standard, the future applicable law shall be applied.

On May 10, 2017, the Ministry of Finance issued the “Accounting Standards for Business Enterprises No. 16 – Government Grants” (revised), which will take effect on June 12, 2017. The Company will adopt the future applicable law for the government subsidies existing on January 1, 2017, and the new government subsidies between January 1, 2017 and the implementation date of this standard will be adjusted according to this standard.

The Ministry of Finance revised the financial statement format of general enterprises in accordance with the relevant provisions of the above two accounting standards, and issued the "About December 25, 2017".
Revise the Notice on Issuing the Format of Financial Statements for General Enterprises; add “Holding Assets for Sale” line item, “Holding for Sale” line item on the balance sheet, and add “
“Production and disposal income” line item, “other income” line item, net profit item added “(1) net profit from continuing operation” and “(2) net profit from termination of operation”. 2018
On January 12, the Ministry of Finance issued the "Interpretation of Issues Related to the Financial Statement Format of General Enterprises", according to the relevant provisions of the interpretation:
For the new “asset disposal income” line item of the income statement, the company complies with the relevant provisions of “Accounting Standards for Business Enterprises No. 30 – Presentation of Financial Statements”, etc.
The comparative data for the comparable period is adjusted in accordance with the Notice.
For the “other income” line item added to the income statement, the company complies with the relevant provisions of the “Accounting Standards for Business Enterprises No. 16 – Government Subsidy” for January 1, 2017.
The government grants that exist in Japan are processed in the future, and there is no need to adjust the comparative data for comparable periods.


(2) Changes in important accounting estimates

During the reporting period, the company had no significant changes in accounting estimates. 33. Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

□Applicable √Not applicable

(2) Changes in important accounting estimates

□Applicable √Not applicable

34, other

6. Taxes

1. Major taxes and tax rates

Tax type tax basis
VAT production income, construction industry labor income, education service income, 16%, 10%, 6%
Urban maintenance and construction tax turnover tax 7%
Corporate income tax taxable income 25%
Education surcharge Circulation tax 5%


If there are different corporate income tax rate taxpayers, the disclosure

Taxpayer name income tax rate
Kevin International 16.5%
Kevin Education US Co., Ltd. federal tax rate 21%; state tax 8.7%
Princeton Westminster International LLC 0%


2. Tax incentives

According to Caishui [2016] No. 36, "Notice of the Ministry of Finance and the State Administration of Taxation on the Comprehensive Pushing of the Pilot Reform of Business Tax to VAT"

Article (8) of the Articles stipulates that Haidian Kewen School, organized by the company’s grandson Kevin Zhixin, submits to the First Taxation Office of the State Taxation Bureau of Haidian District, Beijing.

Taxpayer tax reduction and registration record registration form, from September 1, 2017, the provision of education service income is exempt from VAT.

3, other

Other taxes are calculated and paid according to relevant national and local regulations.

VII. Consolidated financial statement project notes

1. Monetary funds

unit: yuan

Project ending balance
Cash on hand 232,965.97 169,978.97
Bank deposit 112,879,027.90 77,104,673.43
Other currency funds 52,645,923.58 87,791,620.16
Total 165,757,917.45 165,066,272.56
Of which: Total amount deposited abroad: 388,746.67 4,010,904.56


other instructions

52,645,923.58 yuan of other monetary funds is the guarantee deposit.

2. Financial assets measured at fair value through profit or loss

unit: yuan

Project ending balance


other instructions:

3. Derivative financial assets

□Applicable √Not applicable

4. Bills receivable

(1) Classification of notes receivable

unit: yuan

Project ending balance


(2) Notes receivable that the company has pledged at the end of the period

unit: yuan

Item End of the deposit


(3) Notes receivable that the company has endorsed or discounted and has not yet expired on the balance sheet date

unit: yuan

Project Ending confirmation amount at the end of the period


(4) At the end of the period, the company transferred the notes to the accounts receivable due to the failure of the drawer to perform.

unit: yuan

The amount of accounts receivable at the end of the project


other instructions

5. Accounts receivable

(1) Disclosure of accounts receivable

unit: yuan

Closing balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Amount Ratio Amount of book Amount Amount Amount Amount of provisioning Book value
example
According to credit risk characteristics group 408,485. 23,993.6 384,492.3 135,910
99 100.00% 0 5.87% 9 .99 100.00% 6,795.55 5.00% 129,115.44
accounts receivable
Total 408,485. 100.00% 23,993.6 5.87% 384,492.3 135,910 100.00% 6,795.55 5.00% 129,115.44
99 0 9 .99


Accounts receivable with significant single amount and single provision for bad debts at the end of the period:

□Applicable √Not applicable

In the portfolio, the accounts receivable for bad debt provision are calculated according to the aging analysis method:

√Applicable □Not applicable

unit: yuan

Ending balance
Aging
Accounts receivable bad debt provision
Within 1 year
Within 1 year 337,099.99 16,855.00 5.00%
Subtotal within 1 year 337,099.99 16,855.00 5.00%
1 to 2 years 71,386.00 7,138.60 10.00%
Total 408,485.99 23,993.60 5.87%


Determine the description of the combination:

In the portfolio, accounts receivable for bad debt provision are calculated using the balance percentage method:

□Applicable √Not applicable

In the portfolio, accounts receivable with bad debt provision are calculated by other methods:

(2) Provision for bad debts withdrawn, recovered or reversed in the current period

In the current period, the provision for bad debts is made up; in the current period, the amount of bad debts is recovered or transferred back.

Among them, the amount of bad debts prepared for recovery or reversal in the current period is important:

unit: yuan

Unit name Recover or transfer back amount


(3) Accounts receivable actually written off during the period

unit: yuan

Project write-off amount


Among them, the important write-off of accounts receivable:

unit: yuan

Unit Name Nature of Accounts Receivable Verification amount Reason for verification Verification of the performance of the verification process
Easy to produce


Accounts receivable write-off instructions:

(4) Accounts receivable of the top five balances at the closing balance of the arrears

Customer Name Ending Balance (RMB 10,000) Proportion of Accounts Receivable Balance Relationship with Company
Beijing Jinshengfu Food Co., Ltd. 34.46 84.35% Non-related party
Cuiyuan student tuition fee 4.00 7.97% non-related party
Beijing Badachu Real Estate Development Group Co., Ltd. 1.18 2.90% Related parties
Beijing Huayida Real Estate Co., Ltd. 0.57 1.40% Related parties
Beijing Badachu Decoration Engineering Co., Ltd. 0.10 0.24% Related parties
Total 40.31 98.68%


The closing balance of the top five accounts receivable at the closing balance of the arrears is 403,100 yuan, accounting for 98.68% of the total balance of accounts receivable at the end of the period.

The ending balance of provision for bad debts totaled RMB 19,843.85.

(5) Receivables that are derecognised due to the transfer of financial assets

(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved

other instructions:

At the end of the period, the book balance of accounts receivable increased by 197.79% compared with the beginning of the period, mainly due to the increase in service income of academic education around the reporting period, resulting in an increase in the scale of income settlement in each period.

The closing balance of the accounts receivable increased.

6, prepayments

(1) Prepayments are listed by age

unit: yuan

Closing balance
Aging
Amount ratio amount amount
Within 1 year 6,765,449.20 100.00% 50,347.16 100.00%
Total 6,765,449.20 -- 50,347.16 --


Description of the reason why the prepayments with an age greater than 1 year and the important amount are not settled in time:

(2) Advance payment of the top five balances of final balances by prepaid objects

other instructions:

The book balance of prepayments at the end of the period increased by 13,337.60% from the beginning of the period, mainly due to the payment of 1 million US dollars in earnest money from the three colleges of Westminster, USA.

7. Interest receivable

(1) Classification of interest receivable

unit: yuan

Project ending balance
Interest on wealth management products 30,915.00 39,474.88
Total 30,915.00 39,474.88


(2) Important overdue interest

Borrower Unit Ending Balance Overdue Time Overdue Reason Whether the impairment occurred and its judgment
in accordance with


other instructions:

8. Dividends receivable

(1) Dividends receivable

unit: yuan

Project (or invested unit) ending balance


(2) Important dividends receivable for more than one year

unit: yuan

Project (or invested entity) Ending balance Aging Reasons for unrecovered Whether impairment occurs and its judgment
in accordance with


other instructions:

9. Other receivables

(1) Disclosure of other receivables

unit: yuan

Closing balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Amount Ratio Amount of book Amount Amount Amount Amount of provisioning Book value
example
According to credit risk characteristics group 2,994,90 153,687. 2,841,220 1,626,6 1,531,272.7
7.72 100.00% 38 5.13% .34 55.50 100.00% 95,382.78 5.86% 2
Other receivables
Total 2,994,90 100.00% 153,687. 5.13% 2,841,220 1,626,6 100.00% 95,382.78 5.86% 1,531,272.7
7.72 38 .34 55.50 2


Other receivables with significant single amount and single provision for bad debts at the end of the period:

□Applicable √Not applicable

In the portfolio, other receivables for provision for bad debts by aging analysis:

√Applicable □Not applicable

unit: yuan

Ending balance
Aging
Other receivables, bad debt provision, accrual ratio
Within 1 year
Within 1 year 2,936,011.92 146,800.60 5.00%
Subtotal within 1 year 2,936,011.92 146,800.60 5.00%
1 to 2 years 58,895.80 5,889.58 10.00%
Total 2,994,907.72 153,687.38 5.13%


Determine the description of the combination:

In the portfolio, the other receivables for bad debt provision are calculated using the balance percentage method:

□Applicable √Not applicable

In the portfolio, other receivables for provision for bad debts are made by other methods:

□Applicable √Not applicable

(2) Provision for bad debts withdrawn, recovered or reversed in the current period

In the current period, the provision for bad debts is made up; in the current period, the amount of bad debts is recovered or transferred back.

Among them, the amount of bad debts prepared for the current period is important to be transferred back or recovered:

unit: yuan

Unit name Return or recovery amount


(3) Other receivables actually written off during the period

unit: yuan

Project write-off amount


Among the important other receivables written off:

unit: yuan

Unit name The nature of other receivables The amount of the verification The reason for the write-off The execution of the write-off procedure
Easy to produce


Other receivables write-off instructions:

(4) Other receivables are classified according to the nature of the money

unit: yuan

Nature of the balance Book balance at the end of the period
Reserve gold 1,826,365.37 597,339.22
Deposit and security deposit 405,840.00 378,980.00
Other 169,577.07 650,336.28
Payment on behalf of 593,125.28
Total 2,994,907.72 1,626,655.50


(5) Other receivables of the top five ending balances according to the arrears

unit: yuan

Unit name The nature of the payment The ending balance The age of the other receivables The ending balance of the bad debt provision
Proportion of total balance
Xu Zhiwen Rental deposit 78,840.00 within one year 2.77%
Zhang Dianping Rental deposit 80,240.00 within one year 2.82%
Jia Lihua Reserve gold 80,435.03 within one year 2.83%
Tianjin Zhongjing Building Materials Trading Compensation 169,577.07 within one year 5.97%
Limited
Yueyang City Station Chief Liaison Service
Chief of the limited liability company deposit 300,000.00 within one year 10.56%
Sand branch
Total -- 709,092.10 -- 24.95%


(6) Receivables involving government subsidies

unit: yuan

Unit Name Government Subsidy Project Name Ending Balance Final Period Aging Estimated Time and Amount
And basis


(7) Other receivables terminated due to the transfer of financial assets

(8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved

other instructions:

At the end of the period, the book balance of other receivables increased by 85.55% from the beginning of the period, mainly due to the increase in the daily operating rent deposits and the rental of teachers' apartments.

10. Inventory

(1) Inventory classification

unit: yuan

Closing balance
Project
Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value
Stock goods 24,124.73 24,124.73 59,074.12 59,074.12
Total 24,124.73 24,124.73 59,074.12 59,074.12


Whether the company is required to comply with the disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure Guide No. 4 - Listed Companies Engaged in Seed Industry and Planting Business

no

(2) Inventory depreciation reserve

unit: yuan

Increase in the current period
Project opening balance
Withdrawal Others Return or Resale Other


(3) Description of the ending balance of the inventory including the capitalization amount of the borrowing costs

(4) The completed unsettled assets formed by the construction contract at the end of the period

unit: yuan

Item Amount


other instructions:

11. Assets held for sale

unit: yuan

Project Closing value at the end of the period Fair value Estimated disposal cost Estimated disposal time


other instructions:

12. Non-current assets due within one year

unit: yuan

Project ending balance


other instructions:

13. Other current assets

unit: yuan

Project ending balance
Bank wealth management products 8,000,000.00 12,361,300.00
Input tax to be certified 15,489,700.23
The amount of input tax to be deducted 146,294,510.43 113,933,970.19
Prepaid VAT
Prepaid income tax 810,726.22
Deferred expenses 1,246,291.66 1,162,670.31
Total 155,540,802.09 143,758,366.95


other instructions:

14. Available-for-sale financial assets

(1) Available-for-sale financial assets

unit: yuan

Closing balance
Project
Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value


(2) Available-for-sale financial assets measured at fair value at the end of the period

unit: yuan

Available-for-sale financial assets classification Available-for-sale equity instruments Available-for-sale debt instruments Total


(3) Available-for-sale financial assets measured at cost at the end of the period

unit: yuan

Insured book, book balance, impairment provision, investment, current cash
At the beginning of the period, the current period increases, the current period decreases, the period ends, the current period increases, the current period decreases, the period ends, the unit holds dividends.
Proportion


(4) Changes in the impairment of available-for-sale financial assets during the reporting period

unit: yuan

Available-for-sale financial assets classification Available-for-sale equity instruments Available-for-sale debt instruments Total


(5) Relevant explanations of the fair value of the available-for-sale equity instruments at the end of the period or the non-temporary decline but no provision for impairment

unit: yuan

Available-for-sale equity workers Investment costs Final fair value Fair value relative to continuous decline time Amounts of impairment are accrued
Project cost reduction (months)


other instructions

15. Held-to-maturity investments

(1) Held-to-maturity investment

unit: yuan

Closing balance
Project
Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value


(2) Important held-to-maturity investments at the end of the period

unit: yuan

Bond item face value coupon rate real interest rate maturity date


(3) Held-to-maturity investments reclassified in the current period

other instructions

16. Long-term receivables

(1) Long-term receivables

unit: yuan

Closing balance
Project discount rate interval
Book balance bad debt provision book value book balance bad debt provision book value


(2) Long-term receivables that are terminated due to the transfer of financial assets

(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing to be involved

other instructions

17. Long-term equity investment

unit: yuan

Changes in the current period
The initial balance of the invested investment, the other comprehensive equity under the equity method, the issuance and deduction, the impairment, the ending balance, the impairment provision.
Additional investment, reduced investment, confirmed investment, cash dividend, other, ending balance
Profit and loss income adjustment change or profit preparation
I. Joint venture
Eddie Jiayin 200, 861.5 200, 861.5
Educational Technology 8 8
(Beijing)
Limited Liability
the company
Subtotal 200, 861.5 200, 861.5
8 8
Second, joint ventures
Total 200,861.5 200,861.5
8 8


other instructions

In September 2017, the company's controlling subsidiary Kevin Ruixin and natural person Yu Wenjing jointly invested in the establishment of Aidi Jiayin Education Technology (Beijing) Co., Ltd., with registered capital for the people.

The currency was 100,000 yuan, of which Kevin Ruixin subscribed for a capital contribution of 400,000 yuan, and the shareholding ratio was 40.00%.

18. Investment real estate

(1) Investment real estate adopting cost measurement mode

□Applicable √Not applicable

(2) Investment real estate adopting fair value measurement mode

□Applicable √Not applicable

(3) Investment real estate situation without certificate of title

unit: yuan

Project book value


other instructions

19. Fixed assets

(1) Fixed assets

unit: yuan

Projects Houses and Buildings Machinery and Equipment Transportation Tools Office Equipment and Others Total
First, the original value of the book:
1. Opening balance 1,364,076,439.19 1,827,218.00 1,975,978.88 23,565,774.71 1,391,445,410.78
2. The increase amount in the current period 263,801.79 1,538,569.01 1,802,370.80
(1) Purchase 263,801.79 1,538,569.01 1,802,370.80
(2) Construction in progress
Transfer
(3) Business combination
increase
3. Current amount reduction
(1) Disposal or report
Waste
4. Ending balance 1,364,076,439.19 1,827,218.00 2,239,780.67 25,104,343.72 1,393,247,781.58
Second, accumulated depreciation
1. Opening balance 1,595,919.08 169,514.85 29,045.48 2,348,644.54 4,143,123.95
2. Increase in the current period 17,050,955.51 23,740.56 193,213.92 2,914,072.23 20,436,742.41
(1) Provisions 17,050,955.51 23,740.56 193,213.92 2,914,072.23 20,436,742.41
3. Current amount reduction
(1) Disposal or report
Waste
4. Ending balance 18,646,874.59 193,255.41 222,259.40 5,262,716.77 24,325,106.17
Third, the provision for impairment
Opening balance
2. Increase in the current period
(1) Accrual
3. Current amount reduction
(1) Disposal or report
Waste
4. Ending balance
Fourth, the book value
1. Book value at the end of the period 1,345,429,564.60 1,633,962.59 2,017,521.27 19,841,626.95 1,368,922,675.41
2. Book value at the beginning of the period 1,362,480,520.11 1,657,703.15 1,946,933.40 21,217,130.17 1,387,302,286.83


(2) Temporary idle fixed assets

unit: yuan

Item Original book value Accumulated depreciation Impairment reserve Book value Remarks


(3) Fixed assets leased through financial leasing

unit: yuan

Item Original book value Accumulated depreciation Impairment reserve Book value


(4) Fixed assets leased out through operating leases

unit: yuan

Project book value at the end of the period
Building B1 and B2 of Kevin Building 277,444,685.55


(5) Fixed assets without certificate of title

unit: yuan

Project Book value The reason for not completing the title certificate
Chaoyang Kevin School House and Building 1,345,429,564.60 is under processing


other instructions

20. Construction in progress

(1) Construction in progress

unit: yuan

Closing balance
Project
Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value


(2) Changes in important construction projects in the current period

unit: yuan

In the current period, the project will accumulate interest interest in the project.
Project name Budget amount Initial period of the period Increase in the period of the period. He reduces the amount of the remaining amount of the project. The project proceeds into the accumulated interest period.
Weighing amount, amount of assets, amount of money, accounting for the amount of money, capitalization rate, source
Amount ratio


(3) Provision for impairment of construction in progress in the current period

unit: yuan

Project accrual amount in the current period


other instructions

21. Engineering materials

unit: yuan

Project ending balance


other instructions:

22. Fixed assets cleanup

unit: yuan

Project ending balance


other instructions:

23. Productive biological assets

(1) Production biological assets using cost measurement model

□Applicable √Not applicable

(2) Production biological assets using the fair value measurement model

□Applicable √Not applicable

24. Oil and gas assets

□Applicable √Not applicable

25. Intangible assets

(1) Intangible assets

unit: yuan

Project Land use rights Patent rights Non-patent technology Software and others Total
First, the original value of the book
1. Opening balance 971,842,863.07 604,200.86 972,447,063.93
2. Increase in the current period 2,905.98 2,905.98
Amount
(1) Purchase 2,905.98 2,905.98
(2) Internal research
hair
(3) Corporate cooperation
And increase
3. Current amount reduction
(1) Disposal
4. Ending balance 971,842,863.07 607,106.84 972,449,969.91
Second, the cumulative amortization
1. Opening balance 16,156,448.30 44,612.31 16,201,060.61
2. The increase in the current period 9,802,973.33 30,234.22 9,833,207.55
Amount
(1) Provision 9,802,973.33 30,234.22 9,833,207.55
3. Reduction of gold in this period
Amount
(1) Disposal
4. Ending balance 25,959,421.63 74,846.53 26,034,268.16
Third, the provision for impairment
Opening balance
2. Increase in the current period
Amount
(1) Accrual
3. Reduction of gold in this period
Amount
(1) Disposal
4. Ending balance
Fourth, the book value
1. Book price at the end of the period 945,883,441.44 532,260.31 946,415,701.75
Value
2. Book value at the beginning of the period 955,686,414.77 559,588.55 956,246,003.32
Value


At the end of the period, the intangible assets formed through internal research and development of the company accounted for the proportion of intangible assets.

(2) Land use rights without certificate of title

unit: yuan

Project Book value The reason for not completing the title certificate


other instructions:

26. Development expenditure

unit: yuan

Project opening balance Current period increase amount Current period reduction amount Ending balance


other instructions

27. Goodwill

(1) Original value of goodwill book

unit: yuan

Invested entity name
Or the formation of goodwill, the opening balance, the current period, the current period, the period, the ending balance
Item
Wen Kaixing 312,061.40 312,061.40
Kevin Zhixin 186,063,115.81 186,063,115.81
Kevin Ruixin 27,602,832.64 27,602,832.64
Kai Literature Letter 700,514.32 700,514.32
Total 214,678,524.17 214,678,524.17


(2) Goodwill impairment provision

unit: yuan

Invested entity name
Or the formation of goodwill, the opening balance, the current period, the current period, the period, the ending balance
Item


Explain the method of confirming the impairment test process, parameters and goodwill impairment loss of goodwill:

other instructions

There was no significant change in goodwill during the reporting period.

28. Long-term deferred expenses

unit: yuan

Project Opening balance Current period increase amount Current period amortization amount Other reduction amount Ending balance
Haidian School Gymnasium 251,680.71 44,890.09 8,950.58 287,620.22
Office renovation
Decoration 209,778.76 83,916.00 125,862.76
Other 84,390.98 194,484.77 78,067.74 200,808.01
Haidian School Decoration 240,762,246.75 40,644,565.92 10,066,759.30 271,340,053.37
Primary School renovation and renovation work 125,697.00 4,213.32 121,483.68
Cheng
Total 241,433,794.20 40,883,940.78 10,241,906.94 272,075,828.04


other instructions

29. Deferred income tax assets / deferred income tax liabilities

(1) Deferred income tax assets without offset

unit: yuan

Closing balance
Project
Deductible temporary differences Deferred income tax assets Deductible temporary differences Deferred income tax assets
Deductible losses 193,792,936.06 48,448,234.04 137,173,796.52 34,293,449.13
Bad debt provision 176,313.55 44,078.38 101,459.41 25,364.86
Total 193,969,249.61 48,492,312.42 137,275,255.93 34,318,813.99


(2) Deferred income tax liabilities without offset

unit: yuan

Closing balance
Project
Taxable temporary differences Deferred income tax liabilities Taxable temporary differences Deferred income tax liabilities


(3) Deferred income tax assets or liabilities presented in net amount after offset

unit: yuan

Project Deferred income tax assets and liabilities Deferred income tax assets after offsetting Deferred income tax assets and liabilities Deferred income tax assets after offset
Ending balance amount or liability ending balance Balance at the beginning of the period or the beginning balance of the liability
Deferred income tax assets 48,792,312.42 34,318,813.99


(4) Unconfirmed deferred income tax asset details

unit: yuan

Project ending balance
Deductible loss 4,405,302.38
Bad debt preparation 718.92
Total 4,406,021.30


(5) Deductible losses of unrecognized deferred income tax assets will expire in the following years

unit: yuan

Year Ending amount Beginning amount Remarks
2022 4,405,302.38
2021 1,374,449.17
2020 930,293.06
2019 495,410.12
2018 1,439,496.37
Total 8,644,951.10 --


other instructions:

The deferred income tax assets at the end of the period increased by 42.17% as compared with the beginning of the period, mainly due to the increase in the amount of deductible losses due to current losses.

30. Other non-current assets

unit: yuan

Project ending balance
Equipment section 2,039,789.09 219,354.18
Total 2,039,789.09 219,354.18


other instructions:

At the end of the period, other current assets increased by 829.91% compared with the beginning of the period, mainly due to the increase in the purchase of furniture and teaching aids in the new school year.

31. Short-term loans

(1) Short-term loan classification

unit: yuan

Project ending balance
Guaranteed loan 249,500,000.00 280,000,000.00
Total 249,500,000.00 280,000,000.00


Description of short-term loan classification:

(2) Short-term borrowings that have been overdue

The total amount of short-term loans that have been overdue at the end of the period is RMB, and the important short-term loans that have been overdue are as follows:

unit: yuan

Borrower Unit Ending Balance Borrowing Rate Overdue Time Overdue Rate


other instructions:

32. Financial liabilities measured at fair value through profit or loss

unit: yuan

Project ending balance


other instructions:

33. Derivative financial liabilities

□Applicable √Not applicable

34, notes payable

unit: yuan

Type Ending balance Opening balance
Bank acceptance bill 74,831,255.00
Total 74,831,255.00


The total amount of notes payable that have not been paid at the end of the period is RMB.

35, accounts payable

(1) List of accounts payable

unit: yuan

Project ending balance
Materials and other 2,962,785.85 2,770,875.14
Project payable 292,395,153.20 400,729,857.14
Payable equipment
Rent 2,812,500.00
Property charges payable 4,089,276.79
Other 430,391.78 5,506,889.20
Total 302,690,107.62 409,007,621.48


(2) Important accounts payable aged over one year

unit: yuan

Project Ending balance Reasons for outstanding or carry-over


other instructions:

36. Advance receipts

(1) Listing of advance receipts

unit: yuan

Project ending balance
Advance tuition fees 211,589,151.16 91,057,346.76
Advance payment for meals 2,374,267.49 2,902,350.61
Advance training fee 6,520,709.01 1,380,599.92
Total 220,484,127.66 95,340,297.29


(2) Important advance receipts aged over one year

unit: yuan

Project Ending balance Reasons for outstanding or carry-over


(3) Settlement of unfinished projects formed by the construction contract at the end of the period

unit: yuan

Item Amount


other instructions:

The book balance of advance receipts at the end of the period increased by 131.26% from the beginning of the period, mainly due to the collection of tuition fees for the next academic year.

37. Employee benefits payable

(1) List of employee benefits payable

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance
1. Short-term salary 12,264,284.73 58,426,061.09 58,721,173.29 11,969,172.53
Second, post-employment benefits - set to raise 234.69 4,037,247.76 4,008,473.75 663,008.70
Deposit plan
Total 12,898,519.42 62,463,308.85 62,729,647.04 12,632,181.23


(2) Short-term salary list

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance
1. Wages, bonuses, allowances and 11,823,004.96 48,538,771.91 50,084,619.82 10,277,157.05
Subsidy
2. Staff welfare fee 83,435.00 5,543,328.32 4,368,676.32 1,258,087.00
3. Social insurance premiums 357,124.77 2,151,341.86 2,134,779.15 373,687.48
Of which: medical insurance premiums 321,987.10 1,939,666.16 1,924,590.26 337,063.00
Work injury insurance premium 9,378.86 56,678.29 56,235.70 9,821.45
Maternity insurance premium 25,758.81 154,997.41 153,953.19 26,803.03
4. Housing provident fund 720.00 2,192,619.00 2,133,098.00 60,241.00
Total 12,264,284.73 58,426,061.09 58,721,173.29 11,969,172.53


(3) List the proposed contribution plan

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance
1. Basic pension insurance 608,742.25 3,884,060.49 3,856,278.16 636,524.58
2. Unemployment insurance premiums 25,492.44 153,187.27 152,195.59 26,484.12
Total 634,234.69 4,037,247.76 4,008,473.75 663,008.70


other instructions:

38. Taxes payable

unit: yuan

Project ending balance
VAT 104,399.36 211,676.39
Corporate income tax 184,390.10 28,541,750.47
Personal income tax 717,208.69 478,160.20
Urban maintenance and construction tax 578,322.06 590,028.28
Land value added tax 760,851.10 760,851.10
Education surcharge 124,331.50 208,962.35
Stamp duty 41,674.08 189,559.14
Other 81,021.67 39,447.91
Total 2,592,198.56 31,020,435.84


other instructions:

The book balance of tax payable at the end of the period decreased by 91.64% compared with the beginning of the period, mainly due to the payment of the previous year's corporate income tax settlement.

39. Interest payable

unit: yuan

Project ending balance
Interest payable on short-term loans 340,695.62 417,956.46
Total 340,695.62 417,956.46


Important overdue interest rates:

unit: yuan

Borrower Overdue Amount Overdue Reason


other instructions:

40, payable dividends

unit: yuan

Project ending balance
Common stock dividend 511,924.22 425,485.61
Total 511,924.22 425,485.61


Other instructions, including important unpaid dividends payable for more than 1 year, should disclose the reasons for the unpaid:

41, other payables

(1) Other payables by nature of the payment

unit: yuan

Project ending balance
Equity transfer payment 22,700,660.00 22,700,660.00
Collection and payment 8,306,764.66 4,493,016.42
Margin 1,912,400.00
Other 539,563.14 195,914.46
Contacts 7,848,480.67
Borrowing 193,089,708.34
Deposit 2,373,386.88
Total 234,858,563.69 29,301,990.88


(2) Important other payables aged over one year

unit: yuan

Project Ending balance Reasons for outstanding or carry-over


other instructions

42. Liabilities held for sale

unit: yuan

Project ending balance


other instructions:

43. Non-current liabilities due within one year

unit: yuan

Project ending balance


other instructions:

44. Other current liabilities

unit: yuan

Project ending balance
Tax to be resold 2,645,675.26 735,770.47
Total 2,645,675.26 735,770.47


Changes in short-term bonds payable:

unit: yuan

Bond Name Denomination Date of Issue Bond Term Issue Amount Opening Balance Current Issues Issue by Face Value Overflow Discounts Current Period Repayments Ending Balance
Interest earning


other instructions:

45. Long-term loans

(1) Long-term loan classification

unit: yuan

Project ending balance


Description of long-term loan classification:

Other instructions, including interest rate intervals:

46. ​​Bonds payable

(1) Bonds payable

unit: yuan

Project ending balance


(2) Changes in the amount of bonds payable (excluding other financial instruments such as preferred stocks classified as financial liabilities, perpetual bonds, etc.)

unit: yuan

(3) Description of the conversion conditions and conversion time of convertible corporate bonds

(4) Description of other financial instruments classified as financial liabilities

Basic information on other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period

Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period

unit: yuan

At the beginning of the period, the current period increases, the period decreases, and the period ends.
Financial instruments Quantity Book value Quantity Book value Quantity Book value Quantity Book value


Explanation of other financial instruments classified as financial liabilities

other instructions

47. Long-term payables

(1) Long-term payables by nature of money

unit: yuan

Project ending balance


other instructions:

48. Long-term payroll payroll

(1) Long-term payroll employee compensation form

unit: yuan

Project ending balance


(2) Setting changes in the benefit plan

Set the current value of the benefit plan obligation:

unit: yuan

The amount of the current period


Plan assets:

unit: yuan

The amount of the current period


Set benefit plan net debt (net assets)

unit: yuan

The amount of the current period


The impact of the content of the defined benefit plan and the risks associated with it, the company's future cash flow, time and uncertainty:

The main actuarial assumptions and sensitivity analysis results of the defined benefit plan:

other instructions:

49, special payables

unit: yuan

Project opening balance, current period increase, current period decrease, ending balance, formation reasons


other instructions:

50. Estimated liabilities

unit: yuan

Project ending balance balance at the beginning of the project


Other notes, including important assumptions about important projected liabilities, estimates:

51. Deferred income

unit: yuan

Project opening balance, current period increase, current period decrease, ending balance, formation reasons


Projects involving government subsidies:

unit: yuan

In the current period, the new supplementary period is included in the current period and is included in the current period.
Debt Project Initial Balance Amount of Reward Out-of-Job Income Revenue Amount of Revenue This Expense Amount Other Changes Ending Balance Related to Revenue
Amount


other instructions:

52. Other non-current liabilities

unit: yuan

Project ending balance


other instructions:

53. Share capital

unit: yuan

Increase or decrease of this change (+, -)
Opening balance
Issuing new shares, sending shares, providing public reserve funds, other subtotals
Total shares 498,566,987.00 498,566,987.00


other instructions:

54. Other equity instruments

(1) Basic information on other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period

(2) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period

unit: yuan

At the beginning of the period, the current period increases, the period decreases, and the period ends.
Financial instruments Quantity Book value Quantity Book value Quantity Book value Quantity Book value


The changes in other equity instruments in the current period, the reasons for the changes, and the basis for relevant accounting treatment:

other instructions:

55. Capital reserve

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance
Capital premium (share premium) 1,667,152,471.57 1,667,152,471.57
Other capital reserves 1,479,123.35 616,860.39 2,095,983.74
Total 1,668,631,594.92 616,860.39 1,669,248,455.31


Other explanations, including the changes in the current period and the reasons for the changes:

56, treasury shares

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance


Other explanations, including the changes in the current period and the reasons for the changes:

57, other comprehensive income

unit: yuan

Current period
Project opening balance Current period income Decrease: pre-received minus: income tax After-tax vesting After-tax vesting Ending balance
Other comprehensive income before tax occurs at the parent company
Amount transferred to profit and loss in the current period
1. Others that cannot be reclassified into profit or loss in the future -414,690.95 19,239.29 -414,690.
Comprehensive income 95
Second, the other will be reclassified into profit and loss in the future 19,239.29 19,239.29
Income
Foreign currency financial statement translation difference -414,690.95 19,239.29 19,239.29 19,239.29
Total other comprehensive income -414,690.95 19,239.29 19,239.29 -395,451.
66


Other instructions, including the conversion of the effective portion of the cash flow hedge gains and losses to the initial confirmed amount adjustment of the hedged item:

58. Special reserve

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance


Other explanations, including the changes in the current period and the reasons for the changes:

59, surplus reserve

unit: yuan

Project opening balance, current period increase, current period reduction, ending balance
Statutory surplus reserve 27,579,031.87 27,579,031.87
Total 27,579,031.87 27,579,031.87


Explanation of surplus reserve, including the changes in the current period and the reasons for the changes:

60, undistributed profits

unit: yuan

Project current issue
Undistributed profit before the adjustment of the previous period, 9,263,578.49 -11,685,008.79
Adjust the initial undistributed profit in the later period, 9,263,578.49 -11,685,008.79
Plus: net profit attributable to owners of the parent company during the period -51,679,144.94 -25,314,001.34
Undistributed profit at the end of the period -42,415,566.45 -36,999,010.13


Adjustment of undistributed profit at the beginning of the period:

1) Due to the retrospective adjustment of the “Accounting Standards for Business Enterprises” and its related new regulations, the profit factors are not allocated at the beginning of the period.

2) Due to changes in accounting policies, the impact of the beginning of the period is not allocated profit.

3) Due to the correction of major accounting errors, the impact of the beginning of the period is not allocated profit.

4) The change in the scope of the merger due to the same control affects the undistributed profit at the beginning of the period.

5) Other adjustments affect the undistributed profit at the beginning of the period.

61. Operating income and operating costs

unit: yuan

The amount of the current period
Project
Income cost income cost
Main business 81,882,042.19 107,516,909.42 228,629,608.38 211,582,314.69
Other business 7,500,000.00 2,329,231.84 2,637,300.89 2,559,397.33
Total 89,382,042.19 109,846,141.26 231,266,909.27 214,141,712.02


62. Taxes and surcharges

unit: yuan

The amount of the current period
Urban maintenance and construction tax 48,674.94 64,054.31
Education surcharge 20,671.62 63,885.63
Property tax 595,191.78
Land use tax 793,700.01
Vehicle and vessel use tax 8,400.00
Stamp duty 55,581.47 463,272.90
Other 10,558.36
Local education fee 14,096.20
Residual insurance 170,179.00
Total 309,203.23 1,999,062.99


other instructions:

63, sales expenses

unit: yuan

The amount of the current period
Employee compensation 1,468,887.01 911,457.95
Advertising promotion fee 4,486,230.46
Traffic travel expenses 6,803.85 344,213.16
Business hospitality 329,011.00
Other 1,217,730.34
Office consumption 313,126.23 58,55.00
Total 6,275,047.55 2,858,867.45


other instructions:

64, management fees

unit: yuan

The amount of the current period
Traffic travel costs 914,375.17 1,414,118.32
Employee compensation 16,125,176.25 15,413,179.28
Office consumption 979,088.74 2,294,642.24
Business hospitality 85,604.20 381,163.59
Intermediary consulting fee 1,523,696.89 4,069,753.32
Property fee 5,655,108.94
Other expenses 666,378.41 7,628,286.18
R&D expenses 86,345.82
Depreciation and amortization expenses 1,579,713.11
Service charge 4,529,030.41
Rent 2,862,377.55
Total 29,351,786.55 36,856,251.87


other instructions:

65. Financial expenses

unit: yuan

The amount of the current period
Interest expense 9,794,647.30 17,164,978.19
Interest income -733,861.01 -6,609,082.92
Handling fee 73,141.04 228,862.54
Exchange loss 247,674.98
Letter of guarantee fee 20,097.28 498,368.24
Discounted interest on bills
Corporate bond interest 4,024,097.41
Financing lease interest 1,108,191.68
Total 9,154,024.61 16,663,090.12


other instructions:

66. Asset impairment losses

unit: yuan

The amount of the current period
I. Bad debt losses 78,084.83 -8,472,453.38
Second, the inventory price loss 940,932.96
Total 78,084.83 -7,531,520.42


other instructions:

67. Changes in fair value changes

unit: yuan

Sources of income from changes in fair value arising from the current period


other instructions:

68. Investment income

unit: yuan

The amount of the current period
Financial products 153,195.12 5,386,023.47
Total 153,195.12 5,386,023.47


other instructions:

69. Asset disposal income

unit: yuan

Source of income from asset disposal The amount of the current period


70, other income

unit: yuan

Sources of other income, current period
2017-2018 school year private compulsory education students are shared 595,900.00
Subsidy


71. Non-operating income

unit: yuan

The amount of the current period The amount of the previous period is included in the current non-recurring gains and losses.
Amount
Other 0.20 38,479.13
Fine income 165,729.60
Total 0.20 204,208.73


Government subsidies included in current profit and loss:

unit: yuan

Subsidy Projects Distributing Entity Reasons for Distributing Nature Type Whether Subsidy Affects Special Supplements Gold Occurred in the Current Period Gold Occurred in the Last Period Related to Assets /
The profit and loss of the current year is related to the income.
2017-2018 people
Compulsory education Haidian District Education Subsidy 595,900.00 Related to income
Health supplement
Help
Total -- -- -- -- -- 595,900.00 --


other instructions:

72. Non-operating expenses

unit: yuan

The amount of the current period The amount of the previous period is included in the current non-recurring gains and losses.
Amount
Donate 1,000.00
Total loss on disposal of non-current assets 91,451.90
Fine payment 200,000.00 9,360.00
Tax late payment fee 59,616.39
Other 0.01 24,013.72
Total 200,000.01 185,442.01


other instructions:

On January 5, 2018, the Beijing Municipal Planning and Land Resources Committee established the Kaiwen International School project for the company's subsidiary Wen Kaixing in Beimafang Village, Jinyu Township, Chaoyang District.

The project (Tsinghua High School Kevin International School Project) has imposed a fine of 200,000 yuan due to the unauthorised construction of the construction drawings.

73. Income tax expenses

(1) Income tax schedule

unit: yuan

The amount of the current period
Current income tax expense 678,398.06 221,959.63
Deferred income tax expense -14,473,498.43 -2,222,829.04
Total -13,795,100.37 -2,000,869.41


(2) Accounting profit and income tax adjustment process

unit: yuan

Project amount
Total profit -65,083,150.53
Income tax expense -13,795,100.37


other instructions

74, other comprehensive income

See the note for details.

75. Cash flow statement project

(1) Other cash received related to operating activities

unit: yuan

The amount of the current period
Margin and exchange 8,829,706.42 10,384,063.49
Interest income 733,861.01 692,718.49
Government subsidy 595,900.00
Fine income 165,783.24
Tax refund 63,755.27
Total 10,223,222.70 11,242,565.22


Other cash instructions received related to operating activities:

(2) Other cash paid in connection with business activities

unit: yuan

The amount of the current period
Administrative expenses 11,622,919.83 19,889,573.07
Sales expenses 4,202,119.15 1,127,389.07
Bank charges 73,141.04 228,862.54
Contacts 45,338,263.61 80,000,000.00
Other 2,935,565.30
Total 61,236,443.63 104,181,389.98


Other cash instructions related to operating activities:

(3) Other cash received related to investment activities

unit: yuan

The amount of the current period
Interest income 627,288.43 5,769,855.03
Total 627,288.43 5,769,855.03


Other cash instructions received related to investment activities:

(4) Other cash paid related to investment activities

unit: yuan

The amount of the current period


Other cash instructions related to investment activities paid:

(5) Other cash received related to fundraising activities

unit: yuan

The amount of the current period
Note, guarantee deposit 51,449,700.22
Total 51,449,700.22


Other cash instructions received related to fundraising activities:

(6) Other cash paid related to fundraising activities

unit: yuan

The amount of the current period
Note, guarantee deposit 41,912,100.92 58,92,535.31
Total 41,912,100.92 58,92,535.31


Other cash instructions related to fundraising activities paid:

76. Cash flow statement supplementary information

(1) Supplementary information on cash flow statement

unit: yuan

Supplementary information Current amount Amount in the previous period
1. Adjust net profit to cash flow from operating activities: -- --
Net profit -51,288,050.16 -26,314,895.16
Add: Asset impairment provision 78,084.83 -7,531,520.42
Depreciation of fixed assets, depletion of oil and gas assets, productive production 20,436,742.41 19,451,924.16
Depreciation of assets
Amortization of intangible assets 9,833,207.55 5,177,240.23
Long-term deferred expenses amortization 10,241,906.94 6,986,158.65
Disposal of fixed assets, intangible assets and other long-term assets 91,451.90
Loss (revenue is marked with "-")
Financial expenses (revenues are marked with "-") 9,060,786.29 8,717,589.64
Investment losses (revenues are marked with "-") -153,195.12 -5,386,023.47
Deferred income tax assets decreased (increase by "-") -14,473,498.43 -10,115,644.47
Reduction in inventory (increase by "-") 34,949.39 -175,476,234.25
Reduction of operational receivables (increase by "-" to fill 18,868,188.29 114,357,418.42
Column)
Increase in operational payables (reduced by "-" to fill 46,589,769.99 87,772,453.11
Column)
Net cash flow from operating activities 49,228,891.98 17,729,918.34
2. Significant investment and fundraising activities that do not involve cash receipts and payments -- --
move:
3. Net changes in cash and cash equivalents: -- --
Ending balance of cash 113,111,993.87 149,511,505.89
Less: the beginning balance of cash 77,274,652.40 115,083,829.61
Net increase in cash and cash equivalents 35,837,341.47 34,427,676.28


(2) Net cash paid by the subsidiary for the current period

unit: yuan

Amount
among them: --
among them: --
among them: --


other instructions:

(3) Net cash received from disposal of subsidiaries during the period

unit: yuan

Amount
among them: --
among them: --
among them: --


other instructions:

(4) Composition of cash and cash equivalents

unit: yuan

Project ending balance
I. Cash 113,111,993.87 77,274,652.40
3. Balance of cash and cash equivalents at the end of the period 113,111,993.87 77,274,652.40


other instructions:

77. Notes on the item of changes in owner's equity

Explain the names of the “other” items and the adjustment amount for adjusting the balance at the end of the previous year:

78. Assets with restricted ownership or use rights

unit: yuan

Project book value at the end of the period
Monetary funds 52,645,923.58 margin
Fixed assets 1,345,429,564.60 property rights certificate has not been completed
Total 1,398,075,488.18 --


other instructions:

79. Foreign currency monetary items

(1) Foreign currency monetary items

unit: yuan

Project Foreign currency balance at the end of the period Converted exchange rate
HKD 461,092.00 0.8431 388,746.67


other instructions:

(2) Description of overseas operating entities, including for important overseas operating entities, disclosure of their major overseas business locations, bookkeeping base currency and selection

According to the reasons for the change in the bookkeeping currency, the reasons should be disclosed.

□Applicable √Not applicable

80, hedging

Disclosure of hedging items and related hedging instruments, qualitative and quantitative information on hedged risks in accordance with the hedging category:

81, other

8. Changes in the scope of consolidation

1. Business combination not under the same control

(1) Business combination not under the same control occurred in the current period

unit: yuan

When the equity of the purchased party is acquired, the equity is acquired. The equity acquisition ratio is the equity acquirer. The purchase date is confirmed. The purchase date is up to the date.
Weighing point This example purchase date is based on the end of the purchase party
Net profit


other instructions:

(2) Consolidation costs and goodwill

unit: yuan

Merger cost


The method for determining the fair value of the merger cost, or the description of the consideration and its changes:

The main reasons for the formation of large-value goodwill:

other instructions:

(3) The identifiable assets and liabilities of the purchased party on the purchase date

unit: yuan

Purchase date fair value purchase date book value


Method for determining the fair value of identifiable assets and liabilities:

Contingent liabilities of the purchased party assumed in the business combination:

other instructions:

(4) The gain or loss arising from the re-measurement of the equity held before the purchase date at fair value

Is there a transaction that realizes the business combination step by step through multiple transactions and gains control during the reporting period?

□Yes, no

(5) Relevant explanations of the merger consideration or the fair value of the identifiable assets and liabilities of the acquiree cannot be reasonably determined at the end of the purchase date or the end of the current period.

(6) Other instructions

2. Business combination under the same control

(1) Business combination under the same control in the current period

unit: yuan

In the business combination, the same period of control, the merger period, the consolidation period, the comparison period,
The combined company's equity obtained under the equity system, the merger date, the merger date, the initial date of the merger, the merger date, and the merger date.
The basis for proportionality is based on the profit of the merged party of the merged party.
Income net profit


other instructions:

(2) The combined cost

unit: yuan

Merger cost


Or a description of the consideration and its changes:

other instructions:

(3) Book value of the assets and liabilities of the merged party on the merger date

unit: yuan

Merger date


Contingent liabilities of the merged party assumed in the business combination:

other instructions:

3, reverse purchase

The basic information of the transaction, the basis of the transaction constitutes the reverse purchase, whether the assets and liabilities retained by the listed company constitute the business and its basis, the determination of the merger cost, and the interest

Adjust the amount of equity and its calculation when the transaction is processed:

4. Disposal of subsidiaries

Whether there is a single disposal of the investment in the subsidiary, that is, the loss of control

□Yes, no

Is there a situation in which the investment in the subsidiary is stepped through multiple transactions and the control is lost in the current period?

□Yes, no

5. Changes in the scope of consolidation for other reasons

Explain changes in the scope of consolidation caused by other reasons (eg, new subsidiaries, clearing subsidiaries, etc.) and their related circumstances:

No. Subsidiary company full name Subsidiary name Reason for inclusion in the scope of consolidation
1 Kevin Education US Co., Ltd. Kevin America Co., Ltd.
2 Princeton Westminster International Limited Princeton International Inc.
3 Hunan Kaiwen Xingyi Education Technology Co., Ltd. Kaiwen Xingyi New
4 Beijing Chaoyang Kewen School Chaoyang School New


6, other

9. Rights in other subjects

1. Rights in subsidiaries

(1) Composition of enterprise groups

Shareholding ratio
Subsidiary name Main place of business Registration place Business nature Acquisition method
Direct indirect
Wenhua Xuexin Beijing Beijing Investment Management and Education 100.00% Established
Consulting
Wen Kaixing Beijing Beijing Education Investment Management and 100.00% non-identified enterprises
Investment consulting
Chaoyang School Beijing Beijing Education 100.00% established
Kevin Zhixin Beijing Beijing Education Investment Management and 100.00% non-identified enterprises
Investment consulting
Haidian School Beijing Beijing Education 100.00% non-identified enterprises
Industry merger
Kevin Ruixin Beijing Beijing Education Consulting 57.12% non-identified enterprises
Industry merger
Kai Literature Letter Beijing Beijing Education Investment Management and 100.00% non-identified enterprises
Investment consulting
Kevin International Hong Kong Hong Kong Education Investment Management and 100.00% Establishment
Investment Advisory
Kevin Hengxin Beijing Beijing Education Consulting 100.00% established
Kevin Renxin Beijing Beijing Education Consulting 100.00% established
Kai Yu Xinde Beijing Beijing Investment Management and Education 51.00% under the same control
Consulting
Hunan Xingyi Changsha City, Hunan Province Changsha City, Hunan Province Education Consultation 100.00% Establishment
Kevin America Inc. Delaware, USA Delaware International Education Consulting 100.00% established
Princeton International, New Jersey, USA, New Jersey, USA International Education Consulting 100.00% established
Secretary


A description of the shareholding ratio of the subsidiary in the share of the voting rights:

The basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the voting rights but not controlling the investee:

For important structured entities that are included in the scope of consolidation, the basis for control:

Determine the basis for the company to be an agent or a principal:

other instructions:

(2) Important non-wholly owned subsidiaries

unit: yuan

Subsidiary name Minority shareholding ratio In the current period, the minority shareholders are declared to minority shareholders to announce the balance of minority shareholders' equity at the end of the period.
Profit and loss
Kevin Ruixin 42.88% 330,782.17 2,650,265.80 4,378,631.17
Kai Yu Xinde 49.00% 60,312.61 1,253,052.56


The shareholding ratio of the minority shareholders of the subsidiary is different from the proportion of the voting rights:

other instructions:

(3) Main financial information of important non-wholly owned subsidiaries

unit: yuan

Closing balance
Subsidiary
Name Liquidity Non-current Assets Consolidated Negative Non-current Debt Consolidated Liquidity Non-current Assets Consolidated Negative Non-current Debt
Assets, assets, liabilities, liabilities, assets, liabilities, liabilities, liabilities
Kevin Rui 13,370,7 416,103. 13,786,8 3,593,49 3,593,49 16,6 488,621. 17,339,2 2,799,61 2,799,61
Letter 46.16 85 50.01 6.32 6.32 62.66 81 84.47 4.83 4.83
Kai Yuxin 5,412,42 2,354,73 7,767,15 5,209,90 5,209,90 5,122,87 2,382,77 7,505,65 5,071,49 5,071,49
De 2.40 2.18 4.58 4.46 4.46 9.24 5.66 4.90 1.74 1.74


unit: yuan

The amount of the current period
Subsidiary name Comprehensive income total Operating activity now Comprehensive income total Operating activity
Operating income net profit amount gold flow operating income net profit amount gold flow
Kevin Ruixin 3,330,107.73 771,366.87 440,584.70 903,537.18 4,663,372.93 113,029.61 113,029.61 0.00
Kai Yu Xin De 4,937,137.81 123,086.96 62,774.35 1,157,057.50 1,990,906.88 141,090.37 141,090.37 738,752.82


other instructions:

(4) Major restrictions on the use of corporate group assets and liquidation of corporate group debt

(5) Financial support or other support provided to structured entities included in the scope of the consolidated financial statements

other instructions:

2. Changes in the share of the owner's equity in the subsidiary and still control the transactions of the subsidiary

(1) Description of changes in the share of owners' equity in subsidiaries

(2) The impact of the transaction on the minority shareholders' equity and the owner's equity attributable to the parent company

unit: yuan

other instructions

3. Equity in joint venture arrangements or joint ventures

(1) Important joint ventures or joint ventures

Joint venture or joint venture shareholding ratio for joint ventures or joint ventures
Company name Main place of business Registration place Business nature Direct Indirect Business investment meeting
Meter processing method
Beijing Haichen Yunkeke Beijing Beijing Education Consulting Service 20.00% has not yet started business
Technology Co., Ltd.


A description of the shareholding ratio of a joint venture or joint venture that differs from the proportion of voting rights:

A basis that holds less than 20% of the voting rights but has a significant impact, or holds 20% or more of the voting rights but does not have a significant impact:

(2) Main financial information of important joint ventures

unit: yuan

Ending balance / current period amount Opening balance / previous period


other instructions

(3) Main financial information of important joint ventures

unit: yuan

Ending balance / current period amount Opening balance / previous period


other instructions

(4) Summary financial information of unimportant joint ventures and joint ventures

unit: yuan

Ending balance / current period amount Opening balance / previous period
Joint ventures: -- --
Total book value of investment 200,861.58
The total of the following items in terms of shareholding ratio -- --
Associated companies: -- --
The total of the following items in terms of shareholding ratio -- --
-- Net profit 861.58
-- Total comprehensive income 861.58


other instructions

(5) A description of the significant restrictions on the ability of joint ventures or joint ventures to transfer funds to the Company

(6) Excess loss incurred by joint ventures or joint ventures

unit: yuan

Name of joint venture or joint venture Accumulated unrecognized losses recognized in the previous period Unrecognized losses in the current period (or accumulated unrecognized losses at the end of the current period)
Lost net profit)


other instructions

(7) Unconfirmed commitments related to joint venture investment

(8) Contingent liabilities related to investment in joint ventures or joint ventures

4. Important joint management

Shareholding ratio / share of share
Joint operation name Main place of business Registration place Business nature
Direct indirect


The shareholding ratio or share of shares in joint operations is different from the statement of the proportion of voting rights:

Joint operations are separate entities and are classified as the basis for joint operations:

other instructions

5. Equity in structured entities not included in the scope of consolidated financial statements

Relevant descriptions of structured entities not included in the scope of the consolidated financial statements:

6, other

X. Risks associated with financial instruments

The risks associated with the Company's financial instruments are derived from various types of financial assets and financial liabilities recognized by the Company during its operations, including: credit risk, market risk and flow.

Dynamic risk. The company's management is responsible for the management objectives and policies of various risks related to financial instruments. The management team is responsible for the functional department.

Daily risk management. The overall goal of the company's risk management is to reduce the various types of financial workers as much as possible without unduly affecting the company's competitiveness and resilience.

Risk management policy with associated risks.

Credit risk

Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations, causing financial losses to the other party. The company's accounts receivable customers are mainly based on the government.

The main part of the facility investment construction or the general contractor with high credibility, the customer's credit status is good, the possibility of bad debt loss is very small, and the company's receivables quality

Overall higher.

Other financial assets of the Company include monetary funds and other receivables. The credit risk of these financial assets is derived from the default of the counterparty, and the maximum risk exposure is equal to these

The carrying amount of the book.

2. Market risk

The market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in market prices, including foreign exchange risk and interest rate.

Risk and other price risks.

(1) Foreign exchange risk

On June 30, 2018, except for the assets in the following table, which are US dollars and Hong Kong dollars, the assets and liabilities of the Company are all in RMB.

Project Currency balance at the end of the period Converted exchange rate End of the period RMB Converted at the beginning of the period Foreign currency balance Converted exchange rate Converted RMB balance at the beginning
Balance
Monetary funds — — — — — 4,014,421.13
Of which: US$ 507.86 6.9243 3,516.57
EUR - - - - -
-
HKD 461,092.00 0.8431 388,746.67 4,798,249.29 0.8359 4,010,904.56
accounts receivable - - - - -
Of which: USD — — — — —
-
Other receivables 16,340.76 0.8359 13,659.40
Of which: HK$16,340.76 0.8359 13,659.40
Total – 388,746.67 – — 4,028,080.53


The foreign exchange risk arising from the assets and liabilities of these foreign currency balances may have an impact on the Company's operating results. The company will fully consider the appreciation of the RMB during the order taking process.

It is expected that the bargaining power will be fully utilized and relevant provisions will be attached to the export contract to reduce and pass on some exchange rate fluctuation risks.

(2) Interest rate risk

Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to changes in market interest rates. As of December 31, 2017, the company's financial machine

The borrowings implement fixed interest rates and therefore do not face the risk of market interest rate fluctuations.

(3) Other price risks

No.

3. Liquidity risk

Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation to settle cash or other financial assets.

When managing liquidity risk, the management of the Company believes that sufficient cash and cash equivalents are maintained and monitored to meet the company's operational needs and reduce cash.

The impact of traffic fluctuations.

XI. Disclosure of fair value

1. Final fair value of assets and liabilities measured at fair value

unit: yuan

Final fair value
Project first level fair value meter
The second level of fair value measurement The third level of fair value measurement
I. Continuous fair value measurement -- -- -- --
Second, non-continuous fair value meter -- -- -- --
the amount


2. Basis for determining the market price of the first-level fair value measurement project of continuous and non-sustainable

3. Continuing and non-sustainable second-level fair value measurement projects, using qualitative and quantitative information on valuation techniques and important parameters

4. Continuing and non-sustainable third-level fair value measurement projects, using qualitative and quantitative information on valuation techniques and important parameters

5. Continuous third-level fair value measurement project, adjustment information between the opening and ending book value and sensitivity analysis of unobservable parameters

6. The continuous fair value measurement project, the conversion between the various levels during the period, the reason for the conversion and the policy to determine the conversion time

7. Valuation technology changes and reasons for changes occurred during the period

8. Fair value of financial assets and financial liabilities not measured at fair value

9, other

12. Related parties and related party transactions

1. The parent company of the company

Parent company name Registration place Business nature Registered capital Parent company to the parent company of the company to the company
Shareholding ratio
Badachu Holding Group has Beijing investment management and asset management of RMB 30 million 32.60% 32.60%
Limited company


Description of the parent company of the company

The ultimate controlling party of this enterprise is the State-owned Assets Supervision and Administration Commission of Haidian District, Beijing.

other instructions:

2. The subsidiaries of the company

For details of the subsidiaries of this company, please refer to the notes.

3. The situation of joint ventures and joint ventures of the enterprise

See the notes for details of the important joint ventures or joint ventures of the company.

In the current period, there are related party transactions with the Company, or other joint ventures or joint ventures that have formed balances with related parties in the previous period as follows:

Joint venture or joint venture name and relationship with the company


other instructions

4. Other related parties

Other related party names Other related parties and the company's relationship
Beijing Haidian District State-owned Assets Investment Management Co., Ltd. holds 51% equity of Badachu Holding Group Co., Ltd.
Beijing Bada Division Real Estate Development Group Co., Ltd. Bada Branch Holdings Group Co., Ltd. wholly-owned subsidiary
Beijing Guoke New Industry Investment Co., Ltd. Bada Branch Holdings Group Co., Ltd. wholly-owned subsidiary
Beijing Yinye Jinhong Investment Partnership (Limited Partnership) Beijing Huasoft Jinhong Asset Management Co., Ltd. is a general partner, Beijing Bada
Real Estate Development Group Co., Ltd. is a limited partner
Tianjin Zhongjing Building Materials Co., Ltd., controlled by Zhang Jingming, director of Badachu Holding Group Co., Ltd.
Beijing Wanjiaxin Property Management Co., Ltd. The company controlled by Zhang Jingming, director of Badachu Holding Group Co., Ltd.
Beijing Wanjiaxin Building Decoration Engineering Co., Ltd. Beijing Wanjiaxin Property Management Co., Ltd.
Beijing Badachu Decoration Engineering Co., Ltd. Badachu Holding Group Co., Ltd. holds 70% of the shares
Jiangsu Xinzhongtai Bridge Steel Structure Engineering Co., Ltd. Controlled by Zhang Jingming, Director of Badachu Holding Group Co., Ltd.
Beijing Huayida Real Estate Co., Ltd. Beijing Bada Division Real Estate Development Group Co., Ltd. holds 51%
Jiangsu Huanyu Investment Development Co., Ltd. Shareholders holding more than 5% of the company's shares


other instructions

5. Related party transactions

(1) Related transactions for the purchase and sale of goods, provision and acceptance of labor services

Purchase of goods / acceptance of labor

unit: yuan

Related party related party transaction content of the current period The approved transaction amount exceeds the transaction amount.
Beijing Wanjiaxin Property Management Property Fee 8,060,988.30 8,060,988.30 No
Liability limited liability company
Beijing Wanjiaxin Construction Equipment Decoration Project 44,890.09 44,890.09 No
Decoration limited liability company
Beijing Bada Department Decoration Worker Decoration Project 1,326,810.00 1,326,810.00 No
Cheng Company Limited


Sale of goods / provision of labor

unit: yuan

Related party related party transaction amount
Beijing Huayida Real Estate Co., Ltd. meal income 25,830.00
Beijing Badachu Real Estate Development Group has a meal income of 34,118.00
Limited company


Description of related party transactions for the purchase and sale of goods, provision and acceptance of labor services

(2) Associated trusteeship management/contracting and entrusted management/outsourcing

The company's entrusted management / contracting situation:

unit: yuan

Principal/Outsourcing Name Trustee/Contractor Name Trustee/Contracted Asset Class Trustee/Contracting Start Date Trustee/Contract Termination Date Custody Revenue/Contracted Custody
Weighing type pricing basis revenue/contracting income


Associated hosting/contracting situation description

The company entrusted management / outsourcing situation table:

unit: yuan

Principal / Outsourcing Name Trustee / Contractor Name Entrusted / Outsourced Assets Entrusted / Outsourced Start Date Entrusted / Outsourced Termination Day Custody Fee / Outsourcing Fee Set Custody for Current Period Confirmation
Weighing type price basis / outsourcing fee


Association management / outsourcing situation description

(3) Related leases

The company as a lessor:

unit: yuan

Name of the lessee Type of leased assets Lease income recognized in the current period Lease income recognized in the previous period


The company as a lessee:

unit: yuan

Name of the lessor The type of the leased asset The lease fee confirmed in the current period The lease fee confirmed in the previous period
Beijing Guoke New Industry Investment Co., Ltd. Housing construction and land use rights 2,812,500.00 982,702.85
Badachu Holdings Group Co., Ltd. House Building 499,652.50 0.00


Related lease description

(4) Related guarantees

The company as a guarantor

unit: yuan

Guaranteed party Guarantee amount Guarantee start date Guarantee due date Whether the guarantee has been fulfilled
New Zhongtai 915,222,499.77 No


The company as the guarantor

unit: yuan

Guarantee party Guarantee amount Guarantee start date Guarantee due date Whether the guarantee has been fulfilled
Badachu Holdings Group Co., Ltd. 1,300,000,000.00 June 29, 2018 June 29, 2035 No
Secretary
Badachu Holding Group Co., Ltd. 200,000,000.00 March 27, 2017 March 26, 2020 No
Secretary
Badachu Holdings Group Co., Ltd. 100,000,000.00 June 12, 2017 November 06, 2018
Secretary
Southern Heavy Industry 29,636,800.00 January 27, 2015 January 27, 2018
Southern Heavy Industry 120,000,000.00 April 11, 2017 April 11, 2019
Badachu Holding Group Co., Ltd. 120,000,000.00 April 11, 2017 April 11, 2018
Secretary
Badachu Holdings Group Co., Ltd. 50,000,000.00 April 20, 2017 March 6, 2018
Secretary
Badachu Holdings Group Co., Ltd. 100,000,000.00 August 30, 2017 November 06, 2018 No
Secretary
Badachu Holdings Group Limited 200,000,000.00 November 18, 2016 December 31, 2018 No
Secretary


Description of related guarantees

(5) Related party funds lending

unit: yuan

Related party Debit amount Starting date Expiration date Description
Pull in
Badachu Holding Group Co., Ltd. 150,000,000.00 February 11, 2018 February 11, 2019
Secretary
Badachu Holdings Group Co., Ltd. 20,000,000.00 March 06, 2018 March 06, 2019
Secretary
Badachu Holdings Group Co., Ltd. 20,000,000.00 March 19, 2018 March 1919
Secretary
Take out


(6) Asset transfer and debt restructuring of related parties

unit: yuan

Related party related party transaction amount


(7) Remuneration of key management personnel

unit: yuan

The amount of the current period
Key management personnel salary compensation 1,440,981.28 2,865,553.00


(8) Other related transactions

6. Related party accounts receivable and payable

(1) Items receivable

unit: yuan

Closing balance
Project Name Related Party
Book balance bad debt provision book balance bad debt provision
Accounts receivable Beijing Bada Division Real Estate 11,846.00 592.30 15,584.00 779.20
Development Group Ltd.
Accounts receivable Beijing Huayida Real Estate has 5,700.00 285.00
Limited company
Other receivables Tianjin Zhongjing Building Materials 169,577.07 8,478.85 169,577.07 8,478.85
Limited


(2) Projects payable

unit: yuan

Project Name Related Party Final Book Balance Initial Book Balance
Accounts payable Beijing Wanjiaxin Property Management Limited Liability 5,649,276.79 3,484,905.66
Company
Accounts payable Beijing Wanjiaxin Building Decoration Co., Ltd. 55,548.06 54,054.06
Company
Accounts payable Beijing Guoke New Industry Investment Co., Ltd. 2,812,500.00
Other payables Beijing Yinye Jinhong Investment Partnership 16,520,660.00 16,520,660.00
(Limited Partnership)
Other payables Badachu Holdings Group Co., Ltd. 193,089,708.34 120,000,000.00
Dividend payable Jiangsu Huanyu Investment Development Co., Ltd. 425,485.61 425,485.61


7. Related party commitment

8, other

13. Share-based payment

1. Overall situation of share payment

□Applicable √Not applicable

2. Equity-settled share-based payment

□Applicable √Not applicable

3. Cash-settled share-based payment

□Applicable √Not applicable

4. Modification and termination of share payment

5, other

XIV. Commitments and contingent events

1. Important commitments

Important commitments on the balance sheet date

As of June 30, 2018, the company has no major commitments that need to be disclosed.

2. Contingencies

(1) Important contingent events on the balance sheet date

1Company and Guangxi Cangzhou Xijiang Fourth Bridge Project Investment Management Co., Ltd., Hongyu Construction Group Co., Xu Yizhen, Xu Zhigang, Liu Feng Construction Engineering Contract Lawsuit,

Accepted by the Guangxi High Court, the lawsuit was suspended after August 17, 2016, and the trial has not resumed as of the reporting date.

2 Company Chongqing Fengdu Changjiang Second Bridge main bridge steel structure production and transportation contract pending litigation, Chongqing Donggang Shipbuilding Industry Co., Ltd. sued the company's site rent litigation, as of this

On the disclosure date of the report, the company has signed a “Settlement Agreement” with China Communications Road and Bridge Construction Co., Ltd., which stipulates that all parties and relevant third parties are not allowed to make and

The transportation agreement claims any rights to the other party. The two parties shall not be held accountable for the related litigation actions initiated by the Fengdu Second Bridge Box Girder Contract and the litigation-related preservation.

No compensation fees. Litigation between the company and Chongqing Donggang Shipbuilding Industry Co., Ltd.: Chongqing Nan'an District People's Court ruled that the company paid Chongqing Donggang Shipbuilding Co., Ltd.

The venue lease fee, the company appealed. The Fifth Intermediate People's Court of Chongqing Municipality held that the basic facts of the judgment of the first-instance judgment of the Nan'an District People's Court of Chongqing City were unclear, and

Violation of the legal procedures, the ruling was sent back to the People's Court of Nan'an District of Chongqing for retrial.

The company and Xinzhongtai signed the "Asset Transfer Agreement" on the sinking of the bridge steel structure assets, and the contracted assets have the right to mortgage, pledge, freeze, seal and other rights.

In the form of lawsuits, arbitrations or administrative penalties, the company will do its utmost to eliminate the above-mentioned restrictions on rights and properly handle litigation, arbitration or administrative penalties.

It is assumed by Xinzhongtai. If the company suffers any loss or expenses due to the above circumstances, it shall be compensated by Xinzhongtai, so the above pending litigation will not cause substance to the company.

Sexual influence.

(2) The company has no important contingent issues that need to be disclosed, and should also be explained

The company does not have important contingent issues that need to be disclosed.

3, other

XV. Events after the balance sheet date

1. Important non-adjusting matters

unit: yuan

Project Contents Impact on financial status and operating results The reason for the inability to estimate the number of impacts
Number


2. Profit distribution

unit: yuan

3. Sales return

4. Description of events after the other balance sheet date

16. Other important matters

1. Correction of previous accounting errors

(1) Retrospective restatement

unit: yuan

Corrected contents of accounting errors Handlers Affected individual comparison period reports Cumulative impacts
project name


(2) Future applicable law

Correction of Accounting Errors Approval Process Reasons for Adopting Future Applicable Law


2. Debt restructuring

3. Asset replacement

(1) Non-monetary asset exchange

(2) Other asset replacement

4. Annuity plan

5. Termination of business

Unit: Yuan belongs to the parent company

Project Revenue Expenses Total Profits Income Tax Expenses Net Profits Termination of the business
Profit


other instructions

6. Segment information

(1) Determination basis and accounting policy of the report segment

(2) Financial information of the report segment

unit: yuan

Project Inter-segment offset


(3) If the company has no reportable divisions, or cannot disclose the total assets and total liabilities of each reportable segment, the reasons shall be explained.

(4) Other instructions

7. Other important transactions and events that have an impact on investor decision-making

8, other

XVII. Notes on the main items of the financial statements of the parent company

1. Accounts receivable

(1) Disclosure of accounts receivable

unit: yuan

Category Ending balance Opening balance
Book balance bad debt provision book balance bad debt provision
Amount Proportion Amount Amount Ratio Amount of book Amount Amount Amount Amount of provisioning Book value
example


Accounts receivable with significant single amount and single provision for bad debts at the end of the period:

□Applicable √Not applicable

In the portfolio, the accounts receivable for bad debt provision are calculated according to the aging analysis method:

□Applicable √Not applicable

In the portfolio, accounts receivable for bad debt provision are calculated using the balance percentage method:

□Applicable √Not applicable

In the portfolio, accounts receivable with bad debt provision are calculated by other methods:

(2) Provision for bad debts withdrawn, recovered or reversed in the current period

In the current period, the provision for bad debts is made up; in the current period, the amount of bad debts is recovered or transferred back.

Among them, the amount of bad debts prepared for recovery or reversal in the current period is important:

unit: yuan

Unit name Recover or transfer back amount


(3) Accounts receivable actually written off during the period

unit: yuan

Project write-off amount


Among them, the important write-off of accounts receivable:

unit: yuan

Unit Name Nature of Accounts Receivable Verification amount Reason for verification Verification of the performance of the verification process
Easy to produce


Accounts receivable write-off instructions:

(4) Accounts receivable of the top five balances at the closing balance of the arrears

(5) Receivables that are derecognised due to the transfer of financial assets

(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved

other instructions:

2. Other receivables

(1) Disclosure of other receivables

unit: yuan

Closing balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Amount Ratio Amount of book Amount Amount Amount Amount of provisioning Book value
example
The single amount is significant and the bill is 2,459,64 2,459,646
The provision for bad debts alone is 6,598.66 0.01% 0.00 ,598.66
Other receivables
According to the credit risk characteristics group 169,577. 161,098.2 2,566,1 2,566,097,6
Total bad debt provision 07 99.99% 8,478.85 5.00% 2 06,175. 100.00% 8,478.85 96.88
Other receivables 73
2,459,81 2,459,807 2,566,1 2,566,097,6
Total 6,175.73 100.00% 8,478.85,696.88 06,175. 100.00% 8,478.85 96.88
73


Other receivables with significant single amount and single provision for bad debts at the end of the period:

□Applicable √Not applicable

In the portfolio, other receivables for provision for bad debts by aging analysis:

√Applicable □Not applicable

unit: yuan

Ending balance
Aging
Other receivables, bad debt provision, accrual ratio
Within 1 year
Within 1 year 169,577.07 8,478.85 5.00%


Determine the description of the combination:

The age of the account is used as a credit risk feature.

In the portfolio, the other receivables for bad debt provision are calculated using the balance percentage method:

□Applicable √Not applicable

In the portfolio, other receivables for provision for bad debts are made by other methods:

□Applicable √Not applicable

(2) Provision for bad debts withdrawn, recovered or reversed in the current period

In the current period, the provision for bad debts is made up; in the current period, the amount of bad debts is recovered or transferred back.

Among them, the amount of bad debts prepared for the current period is important to be transferred back or recovered:

unit: yuan

Unit name Return or recovery amount


(3) Other receivables actually written off during the period

unit: yuan

Project write-off amount


Among the important other receivables written off:

unit: yuan

Unit name The nature of other receivables The amount of the verification The reason for the write-off The execution of the write-off procedure
Easy to produce


Other receivables write-off instructions:

(4) Other receivables are classified according to the nature of the money

unit: yuan

Nature of the balance Book balance at the end of the period
Contacts 2,459,646,598.66 2,565,936,598.66
Compensation for equity transfer 169,577.07 169,577.07
Total 2,459,816,175.73 2,566,106,175.73


(5) Other receivables of the top five ending balances according to the arrears

unit: yuan

Unit name The nature of the payment The ending balance The age of the other receivables The ending balance of the bad debt provision
Proportion of total balance
Wenhua Xuexin Internal Remittance 1,337,467,633.33 Within 1 year 54.37%
Wen Kaixing internal exchanges 831,729,415.33 within 1 year 33.81%
Kevin Zhixin Internal transactions 290,449,550.00 Within 1 year 11.81%
Tianjin Zhongjing Building Materials Co., Ltd. Share Transfer Compensation 169,577.07 Within 1 year 0.01% 8,478.85
Secretary
Total -- 2,459,816,175.73 -- 100.00% 8,478.85


(6) Receivables involving government subsidies

unit: yuan

Unit Name Government Subsidy Project Name Ending Balance Final Period Aging Estimated Time and Amount
And basis


(7) Other receivables terminated due to the transfer of financial assets

(8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved

other instructions:

3. Long-term equity investment

unit: yuan

Closing balance
Project
Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value
Investing in subsidiaries 19,000,000.00 19,000,000.00 9,000,000.00 9,000,000.00
Total 19,000,000.00 19,000,000.00 9,000,000.00 9,000,000.00


(1) Investment in subsidiaries

unit: yuan

The initial balance of the investee is increased in the current period. The current period is reduced. The ending balance is accrued in the current period.
Reserve
Wenhua Xuexin 9,000,000.00 9,000,000.00
Kai Literature Letter 10,000,000.00 10,000,000.00
Total 9,000,000.00 10,000,000.00 19,000,000.00


(2) Investment in joint ventures and joint ventures

unit: yuan

Changes in the current period
Investment unit Opening balance Under the equity method Other comprehensive other equity Announcement Withdrawal of impairment Ending balance Depreciation reserve
Additional investment, reduced investment, confirmed investment, income adjustment, change, cash dividend, preparation, other, ending balance
Profit or loss or profit
I. Joint venture
Second, joint ventures


(3) Other instructions

4. Operating income and operating costs

unit: yuan

The amount of the current period
Project
Income cost income cost
Main business 204,431,370.49 189,076,493.57
Other business 73,055,825.61 73,394,755.58
Total 277,487,196.10 262,471,249.15


other instructions:

5. Investment income

unit: yuan

The amount of the current period
Financial products 2,572,292.58
Total 2,572,292.58


6, other

18. Supplementary information

1. Current non-recurring profit and loss statement

√Applicable □Not applicable

unit: yuan

Item Amount Description
Government subsidies included in current profit and loss (closed with business operations)
Relevant, according to national unified standards, quota or quantitative enjoyment 595,900.00
Except for government subsidies)
Entrust others to invest or manage the profit and loss of assets 153,195.12
Other non-operating income and expenses other than the above -199,999.81
Less: Income tax impact 137,273.83
Minority shareholders' equity impact 49,267.55
Total 362,553.93 --


Non-recurring gains and losses items defined by the company in accordance with the definition of “Interpretive Announcement of Information Disclosure of Companies That Offer Securities to the Public No. 1 – Non-recurring Gains and Losses”

The non-recurring profit and loss items listed in Interpretive Announcement No. 1 of the Company's Information Disclosure of Development Bank Securities – Non-recurring Gains and Losses are defined as items of recurring profit and loss.

Explain the reason.

□Applicable √Not applicable

2. Return on net assets and earnings per share

Earnings per share
Reporting period profit weighted average return on equity
Basic earnings per share (yuan/share) diluted earnings per share (yuan/share)
Net profit attributable to ordinary shareholders of the company -2.37% -0.10 -0.10
After deducting non-recurring gains and losses, it belongs to the company -2.39% -0.10 -0.10
Net profit of ordinary shareholders


3. Differences in accounting data under domestic and overseas accounting standards

(1) Differences in net profit and net assets in financial reports disclosed in accordance with international accounting standards and in accordance with Chinese accounting standards

□Applicable √Not applicable

(2) Differences in net profit and net assets in financial reports disclosed in accordance with overseas accounting standards and in accordance with Chinese accounting standards

□Applicable √Not applicable

(3) Reasons for differences in accounting data under domestic and overseas accounting standards, and for the adjustment of the data already audited by overseas audit institutions,

Ming the name of the foreign institution

4, other

Section XI Documents for reference

(1) The original 2018 semi-annual report containing the signature of the legal representative of the company and the company's seal;

(2) The financial statements signed and sealed by the person in charge of the company, the person in charge of accounting work, and the person in charge of the accounting department;

(3) The originals of all company documents and the originals of the announcements publicly disclosed on the designated website of the China Securities Regulatory Commission during the reporting period.

Beijing Kaiwen Dexin Education Technology Co., Ltd.

Legal representative: Xu Guangyu

August 7, 2018

shut down

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