重庆建设摩托车股份有限公司

CHONGQINGJIANSHEMOTORCYCLECO.
,LTD.
AnnualReport2008建设摩托TableofContentsCHAPTERI.
IMPORTANTSTATEMENT3CHAPTERII.
COMPANYPROFILE4CHAPTERIII.
FINANCIALHIGHLIGHTS5CHAPTERIV.
PARTICULARSABOUTTHECAPITALSHARESANDSHAREHOLDERS8CHAPTERV.
DIRECTORS,SUPERVISORS,SENIOREXECUTIVESANDEMPLOYEES11CHAPTERVII.
THESHAREHOLDERS'MEETINGS错误!
未定义书签.
CHAPTERVIII.
REPORTOFTHEBOARDOFDIRECTORS错误!
未定义书签.
CHAPTERIX.
REPORTOFTHESUPERVISORYCOMMITTEE26CHAPTERX.
SIGNIFICANTEVENTS28CHAPTERXI.
FINANCIALREPORT33CHAPTERXII.
DOCUMENTSFORREFERENCE33ChapterI.
ImportantStatementTheBoardofDirectorsandthedirectorsoftheCompanyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.
DirectorYuGuhua,SunWei,andHaoLinabsentedthe8thmeetingofthe5thtermofBoard,theyentrusteddirectorCaiTao,WangKun,andChengYuanweitovoteinfavorontheirbehalvesrespectively.
Mr.
YuGuohua,theLegalRepresentativeoftheCompany,Mr.
TengFeng,theFinancialOfficer,Mr.
ChengFukai,themanagerofaccountingdepartment,herebydeclare:thetruthfulnessandcompletenessoftheFinancialReportareguaranteed.
Mr.
YuGuohua,ChairmanofBoardChapterII.
CompanyProfile(I)StatutoryChinesename:重庆建设摩托车股份有限公司(缩写:建设摩托)StatutoryEnglishname:CHONGQINGJIANSHEMOTORCYCLECO.
,LTD.
(Abbr.
JSMC-B(II)Legalrepresentative:YuGuohua(III)SecretaryoftheBoard:YuWenbiaoAddress:No.
1JiansheRoad,HuaxiIndustrialZone,Ba'nanDistrict,Chongqing,Postcode:400054.
Tel:(023)66295333Fax:(023)66295333Email:cqjsmc@jianshe.
com.
cn(IV)Registeredaddress:No.
1JiansheRoad,HuaxiIndustrialZone,BananDistrict,ChongqingOfficeaddress:No.
1JiansheRoad,HuaxiIndustrialZone,BananDistrict,ChongqingPostcode:400050Website:http://www.
jianshe.
com.
cnEmail:cqjsmc@jianshe.
com.
cn(V)Informationdisclosuremedia:Website:http://www.
cninfo.
com.
cnPressmedia:SecuritiesTimes,HongKongCommercialDailyPlacewherethereportsandannouncementarereadyforinquiry:SecretariatoftheBoard(VI)Stocklistedin:ShenzhenStockExchangeAbbreviationofthestock:JianmoBStockcode:200054(VII)Misc.
InformationPrimaryregistrationdate:July19th,1995Registrationmodifiedon:January20,2009Primaryregistrationplace:ShenzhenIndustry&CommerceAdministrativeBureauSecondaryregistrationplace:ChongqingIndustry&CommerceAdministrativeBureauBusinesslicenseNo.
500000400001350TaxationregistrationNo.
National:500107747482423Local:500107747482423CertifiedPublicAccountant:DaxinCertifiedPublicAccountantsAddressoftheCPA:7th-8thFloor,BlockAB,1166ZhongshanRd.
,JinyuanWorldCenter,WuhanChapterIII.
FinancialHighlightsI.
MainindicesTheCompanyachievedinthereportyearoperationprofitofRMB-201.
30millionandtotalprofitofRMB150.
61million,netprofitattributabletotheshareholdersoflistedcompanyofRMB157.
32million.
Inwhich,netprofitattributabletoshareholdersofthelistedcompanyafterdeductingofnon-recurringgain/losswasRMB-249.
02million,andnetcashflowfrombusinessoperationofRMB4.
98million.
Note:Non-recurringitemsdeducted(RMB0'000)Non-recurringgainandlossitemsAmountIncomefromdisposalofnon-currentassets1,430Governmentsubsidycountedintocurrentgain/lossaccount222Gainsfrommovinginnon-businessgains32,724Otheritemsundernon-operationalincome1,089Lossfromdisposalofnon-currentassets-196Otheritemsundernon-operationalexpenses-77Influenceofminorshareholders'equity3Influenceofincometax-379TheCompany'sshareofgainsfrommovingofChongqingJianya5,819Total40,635II.
Financialhighlightsoftheprevious3yearstilltheendofreportyear(RMB0'000)1.
PrincipalaccountingdataItemsYear2008Year2007Changedoverlastyear(%)2006NotadjustedAdjustedAdjustedNotadjustedAdjustedOperationincomeRMB0'000259,042263,876263,876-1.
83%238,572238,572TotalprofitRMB0'00015,0621,4771,477919.
77%3,0572,921NetprofitattributabletotheshareholdersoflistedcompanyRMB0'00015,7321,2061,2061204.
48%3,1223,120Netprofitattributabletotheownersofthelistedcompanyafterdeductingofnon-recurringgain/loss(RMB0'000)-24,962759759-2663.
90%2,3752,372NetCashflowgeneratedbybusinessoperation(RMB0'000)49810,36910,369-95.
20%10,41610,416Endof2007Endof2006Changedoverlastyear(%)Endof2005NotadjustedAdjustedAdjustedNotadjustedAdjustedTotalcapitalRMB0'000272,396253,382253,3827.
50%219,557220,213Shareholders'EquityRMB0'00043,94228,21028,21055.
77%27,21426,9842.
PrincipalaccountingindicesItemsYear2008Year2007Changedoverlastyear(%)2006NotadjustedAdjustedAdjustedNotadjustedAdjustedBasicearningpershare(yuan)0.
330.
030.
031204.
48%0.
070.
07Dilutedearningspershare(yuan)0.
330.
030.
031204.
48%0.
070.
07Basicearningpershareafterdeductingofnon-recurringgains/losses(yuan)-0.
410.
020.
02-2663.
90%0.
050.
05Netincomeonasset,fullydilutedanddeductednon-recurringgain/loss%35.
804.
274.
27738.
41%11.
4711.
56Netincomeonasset,weightedaverage%43.
614.
374.
37897.
94%12.
1812.
28Netincomeonasset,fullydilutedanddeductednon-recurringgain/loss%-56.
672.
692.
69-2206.
69%8.
738.
79Netincomeonasset,weightedaverageanddeductednon-recurringgain/loss%-69.
032.
752.
75-2610.
18%9.
269.
34NetCashflowpersharegeneratedbybusinessoperation(RMB)0.
010.
220.
22-95.
20%0.
220.
22Endof2008Endof2007Changedoverlastyear(%)Endof2006NotadjustedAdjustedAdjustedNotadjustedAdjustedNetassetpershareattributabletoshareholdersoftheCompany(yuan)0.
920.
590.
5955.
72%0.
570.
57III.
Thereisnodifferencebetweenthenetprofitsandshareholders'equitiesdeterminedrespectivelyaccordingtoChineseaccountingstandardsandinternationalaccountingstandardsIV.
Changeinshareholders'equity(in10thousandsharesorRMB0'000)ItemsSharecapitalCapitalreservesSurplusreservesRetainedprofitMinorshareholders'equityTotalofshareholders'equityBeginningofterm47,75059,01812,569-91,12733528,545Increasedthisterm15,73215,732Decreasedthisterm88Endofterm47,75059,01812,569-75,39434344,285Reasonofchange:Increasingofundistributedprofitwascausedbytransferringofsite-movinggains.
ChapterIV.
ParticularsabouttheCapitalSharesandShareholdersI.
MovementofcapitalsharesInsharesBeforethechangeChangedCurrently(+,-)AfterthechangeAmountProportionIssuingofnewsharesBonussharesTransferredfromreservesOthersSub-totalAmountProportion(I)Non-negotiableshares357,500,00074.
87%00000357,500,00074.
87%1.
Promoter'sshares357,500,00074.
87%00000357,500,00074.
87%Including:State-ownedshares000000000Domesticlegalpersonshares346,625,00072.
59%00000346,625,00072.
59%Overseaslegalpersonshares000000000Other(Naturalperson)10,875,0002.
28%0000010,875,0002.
28%2.
Legalpersonsharesplaced0000000003.
Employees'shares0000000004.
Preferencesharesorothers000000000(II)Negotiableshares120,000,00025.
13%120,000,00025.
13%1.
CommonsharesinRMB0000000002.
Foreignsharesindomesticmarket120,000,00025.
13%00000120,000,00025.
13%3.
Foreignsharesinoverseasmarket0000000004.
Others000000000(III)477,500,000100%00000477,500,000100%II.
Shareplacingandlisting1.
TheCompanydidnotissuenewsharesandderivedsecuritiesinthepreviousthreeyearsbytheendofthereportterm.
2.
Therewasnochangeofthetotalsharesandsharestructureresulting,orthebalancesheetstructurefrombonusshares,capitalizationofcommonreservefund,shareallotment,issueofnewshares,privateissuingofshares,exercisingofequitycertificates,shareoptionincentiveprogram,takeoverandmerger,conversionofconvertiblebondsintoshares,capitalreduction,listingofemployees'sharesorissuingofbonds.
3.
TheCompanydoesnothaveemployees'shares.
III.
Majorshareholdersandsubstantialcontrollers1.
Particularsaboutthetop10holdersofB-sharesandthelegalpersonshareholders:Domesticstate-ownedshareholdersTotalofshareholders17,632Top10ShareholdersNameoftheshareholderPropertiesofshareholderShareproportion%Sharesheldattheendofyear(shares)Non-negotiableshares(shares)PledgedorfrozenChinaSouthernIndustryGroupCo.
,Ltd.
State-ownedlegalpersonshareholder71.
13339,625,000339,625,0000GuZuochengDomesticnaturalperson1.
868,875,0008,875,000N/AYangpuXinyufengInvestmentCo.
,Ltd.
Domesticnon-state-ownedlegalpersonshareholder1.
467,000,0007,000,000N/AFengYonghuiDomesticnaturalperson0.
422,000,0002,000,000N/AShanghaiHongKongWanguoSecuritiesForeignshares0.
18840,0000N/AWangChuxinForeignshares0.
13610,0000N/APuYuanliForeignshares0.
12555,1110N/AJiYongqinForeignshares0.
08400,0000N/AJiaWeiyingForeignshares0.
08395,0000N/AYuanRunyanForeignshares0.
07351,7000N/ATop10CurrentShareHoldersNameoftheshareholderCurrentsharesheldCategoryofsharesShanghaiHongKongWanguoSecurities840,000ForeignsharesplacedindomesticexchangeWangChuxin610,000ForeignsharesplacedindomesticexchangePuYuanli555,111ForeignsharesplacedindomesticexchangeJiYongqin400,000ForeignsharesplacedindomesticexchangeJiaWeiying395,300ForeignsharesplacedindomesticexchangeYuanRunyan351,700ForeignsharesplacedindomesticexchangeXuShaolin347,900ForeignsharesplacedindomesticexchangeDongPengxue323,800ForeignsharesplacedindomesticexchangeCaiZujian300,000ForeignsharesplacedindomesticexchangeABNAMROBANKNV290,100ForeignsharesplacedindomesticexchangeNotestorelationshipor"actioninconcert"amongthetoptenshareholders.
Thereisn'tanyassociatedrelationshipbetweenthesponsoringshareholderandtheothershareholdersamongthetop-10list.
Noneofthemareregardedas'Actinginconcert'inaccordancewith'Therulesofinformationdisclosureonchangeofshareholding.
'Shareholdersbeyondthetop-10listareunknownfortheirconditionof'Associatedrelationship'and'Actinginconcert'.
2.
Profileofthecontrollingshareholder:ChinaSouthernIndustryGroupCo.
,Ltd.
,thecontrollingshareholderoftheCompany,wasincorporatedonJune29th1999.
ItsregisteredcapitalisRMB12,645,210,000,andMr.
XuBinisthelegalrepresentative.
Itisastate-ownedenterprisewithmajorbusinessscopeof:investmentandoperationofstate-ownedcapital;developing,designing,manufacturing,sales,andstorageofopticalproducts,electronicsandopticalelectronicsproducts,night-viewequipment,machinery,vehicles,measuringinstruments,firefightingequipment,environmentalprotectionequipment,constructionmachinery,informationandtelecommunicationequipment,chemicalmaterials,metalandnonmetalmaterialsandproducts,andconstructionmaterials;reconnaissance,designing,implementing,contracting,andmonitoringofengineeringprojects;equipmentinstallation;organizingofdomesticexhibition;plantingandstockfarming;deepprocessingofagricultureside-products;technicaldeveloping,trading,consulting,andservicingthatrelatedtotheabovebusinesses;importingandexportingtrades.
3.
Therewerenoothercorporateshareholdersholdingover10%(inclusive)ofthetotalsharesoftheCompanyinthereportterm.
ChinaSouthernIndustryCo.
Ltd.
NationalState-ownedAssetAdministrativeCommittee100%ChongqingJiansheMotorcycleCo.
,Ltd.
71.
13%ChapterV.
Directors,Supervisors,SeniorExecutivesandEmployeesI.
Directorsofthecurrent5thtermofBoard,supervisorsandseniorexecutivesoftheCompany1.
ProfilesoftherelatedpartiesNamePositionSexAgeJobtermSharesheldatthebeginningoftermSharesheldattheendoftermChangedinthereportyearCauseofchangeYueGuohuaChairman,GMM452008.
4―2011.
4000NoneCaiTaoDirectorM512008.
4―2011.
4000NoneTengFengDirector,ViceGM,FinancialOfficerM372008.
4―2011.
4000NoneSunWeiDirectorM432008.
4―2011.
4000NoneQiaoRuimingDirectorM482008.
4―2011.
4000NoneWangKunDirectorM342008.
4―2011.
4000NoneHaoLinDirectorM462008.
4―2011.
4000NoneYangRongqinEmployeeDirectorM422008.
4―2011.
4000NoneWangJunIndependentDirectorM472008.
4―2011.
4000NoneChenXingshuIndependentDirectorM472008.
4―2011.
4000NoneChengYuanweiIndependentDirectorM442008.
4―2011.
4000NoneYuJianfengIndependentDirectorM392008.
4―2011.
4000NoneChenFengzhenChairmanofthesupervisorycommitteeF532008.
4―2011.
4000NoneHanJinkeSupervisorM552008.
10―2011.
4000NoneXinMingwenEmployeeSupervisorF472008.
4―2011.
4000NoneLiRenbinEmployeeSupervisorM412008.
4―2011.
4000NoneCheLianfuViceGeneralManagerM462008.
4―2011.
4000NoneWenHongViceGeneralManagerM432008.
4―2011.
4000NoneYuJiangViceGeneralManagerM382008.
4―2011.
4000NoneYuWenbiaoSecretaryoftheBoardM432008.
4―2011.
4000None2.
Majorcareerhistoryofthedirectors,supervisorsandseniormanagementandtheirjobstakeninpartiesotherthanshareholdersoftheCompany.
(1)Majorcareerhistoryofthelatest5yearsYuGuohua:OncehewasinthepositionsofGeneralManagerofChongqingJiansheSalesCo.
,Ltd.
(theSalesCo.
),GeneralManagerofJiansheEngineCo.
,Ltd.
,AssistanttoGeneralManagerandViceGeneralManagerofJiansheIndustry(Group)Co.
,Ltd.
(JiansheGroup),ViceGeneralManageroftheCompany.
Atpresenthe'stheChairmanofBoardofChongqingJiansheIndustryCo.
,Ltd.
(JiansheIndustry)andChongqingJiansheMachineryCo.
,Ltd.
(JiansheMachinery),ChairmanandGeneralManageroftheCompany.
CaiTao:OncehewasManagerofAutomobileAir-conditionerCompressorCo.
,ViceGeneralManagerandDirectorofJiansheIndustry(Group)Co.
,Ltd.
Atpresenthe'sDirectorandSecretaryofCCPCommitteeofJiansheIndustry,Director,SecretaryofCCPCommittee,DirectorandGeneralManagerofJiansheMachinery,andDirector,SecretaryofCCPCommitteeoftheCompany.
TengFeng:OncewasheadofAccountingDivision;AssistanttoGeneralManagerofJiansheGroup;AssistanttoGeneralManagerofJiansheIndustry;ViceGeneralManagerofMotorcycleBusinessDivisionoftheCompany.
Atpresenthe'sdirectorofJiansheIndustry;Director,ViceGeneralManagerandHeadofAccountingoftheCompany.
SunWei:OnceworkedforDevelopment&PlanningDepartmentofSouthernGroupasviceheadofFixedAssetsInvestmentDivision,headofLong-termPlanning,headofPlanningDivision,andheadofDevelopment&PlanningDivision.
Atpresenthe'stheheadofAssetManagementSectionIIofCapitalOperationDepartmentofSouthernGroup;DirectoroftheCompany.
QiaoRuiming:OncehewastheDirectorofQualityDivisionofTechnical&QualityDeptofChinaSouthernGroupCo.
,Ltd.
Atpresenthe'stheDirectorofQualityDivisionofTechnologyQualityandInformationDept.
ofChinaSouthernIndustryGroupCo.
,Ltd.
DirectoroftheCompany.
WangKun:OncehewastheViceDirectorofAssetDivisionofFinance&AuditingDept.
andViceDirectorofCapitalOperationDivisionofCapitalOperationDept.
ofChinaSouthernIndustryGroupCo.
,Ltd.
Atpresenthe'stheViceDirectorofCapitalOperationDivisionofCapitalOperationDept.
ofChinaSouthernIndustryGroupCo.
,Ltd.
andDirectoroftheCompany.
HaoLin:Atpresenthe'sthePresidentofShenzhenQiaozhouxingTechnologiesDevelopmentCo.
,Ltd.
,ChairmanofChongqingTongkangTechnologiesCo.
,Ltd.
,andChairmanofShenzhenYuyangComputerSystemCo.
,Ltd.
,DirectoroftheCompany.
YangRongqing:OncewasViceDirectorandDirectorofDevelopment&PlanningDepartment,andViceDirectorofMarketDepartmentofJiansheGroup;ViceManagerofAutomobileAir-ConditionerCo.
(Air-conditionerCo.
);SecretaryofCCPCommitteeofSalesCo.
,DirectorofMarketDepartmentoftheCompany.
Atpresenthe'stheViceGeneralManager(ChiefLeader)ofSalesCo.
;EmployeeDirectoroftheCompany.
WangJun:OnceworkedforChongqingTongjungePharmaceuticalFactoryasTechnicalDirectorofNo.
5Workshop,ViceDirectorofSupplyandSalesDivision;ManagerofShanghaiWanguoSecuritiesChongqingDivision;BusinessManagerofSheyinWanguoSecuritiesLtd.
ChongqingDivision;Atpresenthe'stheGeneralManagerofChongqingHeadQuarterofShenyinWanguoSecuritiesCo.
,Ltd.
;IndependentDirectorofChinaJialin,andtheCompany.
ChenXingshu,oncehewasdirectorofacademicoffice,vicedirectoranddirectorofAccountingDepartment,ChongqingCollegeofBusiness.
Atpresenthe'sthedeanofAccountingSchoolofChongqingUniversityofIndustry&Commerce;postgraduatecoursetutorofbusinessmanagementandaccountingofChongqingUniversityofIndustry&Commerce;StandingvicedirectorofuniversitydivisionofChinaBusiness&AccountingAssociation;VicechiefsecretaryofChongqingAccountantsAssociation;IndependentdirectorofChongqingDepartmentStore,ChongqingGangjiu,andGaojinFood.
ChengYuanwei.
OncehewasthechiefclerkofChongqingMunicipalDisciplineCommissionandSupervisoryBureau;vicedirectorofChongqingXingquanLawOffice.
Atpresenthe'sthechiefpartnerandlawyerofChongqingYuanweiLawOffice;permanentlegalconsultantofHualiPharmacy,HechengPharmacy,ZhongshenPower,FulinElectricity,XingmeiLianhe,ChaohuaTech,ShanxiaPaint,andSiweiHolding;independentdirectorofHuabangPharmacyandSouth-westernPharmacy.
YuJianfeng:OnceProjectManagerofChongqing(Tianjian)CPAs;ViceManagerandManagerofAuditingDepartment,ManagerandSeniorManagerofProfessionalStandardDivisionofChongqingTianjianCPAs;ExecutiveofChongqingGreenVolunteerAssociation.
Atpresenthe'stheChiefAccountant(executivepartner)ofChongqingYongheCPAs;IndependentDirectoroftheChongqingBeerandtheCompany.
ChenFengzhen:OnceWorkedforJiansheGroupasViceChiefAccountant,ManagerofMaterialSupplyCo.
,ChiefAccountant,andDirector;SupervisorandDirectoroftheCompany.
Atpresentshe'stheHeadofMotorcycleIndustrySupervisoryCommitteeofSouthernGroup;ChairmanofSupervisoryCommitteeofJiansheIndustry,ChinaJialin,JialinSpecialEquipment,andtheCompany;SupervisorofJinanQingqi,LuoyangNorthernGroup(LuoyangNorthern).
HanJinke:OnceworkedforChinaQingqiGroupHefeiMotorcycleFactoryassecretaryofCCPCommitteeandFactoryManager;SecretaryoftheBoardofChinaQingqiGroup;SecretaryoftheBoard,ViceChiefSecretaryofCCPCommittee,andChiefSecretaryofDisciplineCommitteeofJinanQingqi;SupervisorofChinaJialinandtheCompany;ChairmanofSupervisoryCommitteeofJinanQingqiandLuoyangNorthern.
XinMingwen:OnceworkedasHeadofAccountingDivisionofChongqingJiansheYAMAHACo.
(ChongqingJianya);ViceHeadofAccountingDepartment,ViceGeneralManagerofSalesCo.
,HeadofAuditingDepartmentoftheCompany.
Atpresenthe'stheHeadofAuditingDepartmentandEmployees'SupervisoroftheCompany.
LiRenbin:OnceworkedasOfficeManagerofCCPCommittee,DirectorofPlanningDivision,ViceSecretaryofCCPCommitteeofQualityDivisionoftheCompany;SecretaryofCCPCommitteeofJiansheIndustrySecurityDivision.
Atpresenthe'stheManagerofDisciplineOffice,HeadofInspectionDivision,ViceSecretaryofDisciplineOffice,andEmployees'SupervisoroftheCompany.
CheLianfu:OncehewastheChairmanandGeneralManagerofHunanJiangbinMachinery(Group)Co.
,Ltd.
;ViceGeneralManagerandDirectorofJiansheGroup;DirectoroftheCompany.
HeiscurrentlytheViceGeneralManageroftheCompany.
WenHong:OncehewastheManagerofToolsCo.
,ViceOfficeManagerofJiansheIndustry(Group)Co.
,Ltd.
;ViceGeneralManagerofSalesCo.
oftheCompany.
HeiscurrentlytheGeneralManagerofSalesCo.
,andViceGeneralManageroftheCompany.
YuJiang:Oncehe'stheViceChiefofFactoryNo.
3ofJiansheIndustry(Group)Co.
,Ltd.
;ManagerofEngineCo.
ofShenzhenJiansheMotorcycleCo.
;DirectorofQualityDivisionoftheCompany;ViceOfficeManagerofJiansheGroup;DirectorofTechnicalCenteroftheCompany.
Atpresenthe'stheViceGeneralManageroftheCompany.
YuWenbiao:OncehewastheViceDirectorofDevelopmentPlanningDept.
,DirectorofBeijingOffice,ViceDirectorofOperationAdministrativeDept.
,DirectorofEconomicOperationDivision,ViceDirectorandDirectorofDevelopmentPlanning,andDirectorofJoint-VentureandCooperationDeptofJiansheIndustry(Group)Co.
,Ltd.
;theAssistanttoGeneralManager,DirectorofCapitalOperationDept.
ofChongqingJiansheIndustryCo.
,Ltd.
Atpresenthe'stheViceGeneralManagerofZhuzhouJiansheYAMAHACo.
,Ltd.
(ZhuzhouJianya)andSecretaryoftheBoardoftheCompany.
(2)Takingpositionsinshareholdingentities3.
AnnualRemuneration(1)TheCompanydeterminedtheremunerationofdirectors,supervisorsandseniorexecutivesaccordingtotheindicatorsofeconomicliabilityandtheirperformances.
(2)Therewere11currentdirectors,supervisorsandseniorexecutiveswhoweretakingremunerationsfromtheCompanyandwereamountedtoRMB981.
9thousand.
Amongthem,ChairmanandGMMr.
YuGuohuaRMB110.
3thousand;DirectorCaiTaoRMB110.
3thousand;DirectorandViceGMTengFengRMB99.
6thousand;DirectorYangRongqingRMB87.
6thousand;ChairmanofSupervisoryCommitteeChenFengzhenRMB99.
6thousand;SupervisoryLiRenbinRMB61.
2thousand;SupervisorXinMingwenRMB55.
9thousand;ViceGeneralManagerCheLianfuRMB99.
6thousand;ViceGeneralMangerWenHongRMB99.
6thousand;ViceGeneralMangerYuJiangRMB99.
6thousand;SecretaryoftheBoardYuWenbiaoRMB58.
6thousand;4IndependentDirectorseachhaveRMB20thousandofallowances.
(3)DirectorSunWei,QiaoRuiming,WangKun,HaoLin,andSupervisorHanJinkeacceptremunerationsfromtheshareholdingpartiesorrelatedparties.
NameNameofshareholdingpartiesJobtakenincompaniesinsideoroutsidetheshareholdingcompanyJobtermYueGuohuaJiansheIndustry(Subsidiaryofthecontrollingshareholder)JiansheMachinery(Subsidiaryofthecontrollingshareholder)ChairmanChairman2007.
9-presentCaiTaoJiansheIndustry(Subsidiaryofthecontrollingshareholder)JiansheMachinery(Subsidiaryofthecontrollingshareholder)ChiefSecretaryofCCPCommittee,DirectorGeneraManager,Director2005.
12-present2007.
9-presentSunWeiSouthernGroup(Controllingshareholder)DirectorofAssetManagementDivision,CapitalOperationDept.
2008.
1-presentQiaoRuimingSouthernGroup(Controllingshareholder)DirectorofQualityDivision,TechnicalQualityandInformationDept.
2004.
12-presentWangKunSouthernGroup(Controllingshareholder)DirectorofCapitalOperationDivision,CapitalOperationDept.
2005.
7-presentHaoLinChongqingTongkangTechnologiesCo.
,Ltd.
Chairman2001.
1-presentChenFengzhenSouthernGroup(Controllingshareholder)JiansheIndustry(Subsidiaryofthecontrollingshareholder)ChinaJialin(Subsidiaryofthecontrollingshareholder)JialinSpecialEquipment(Subsidiaryofthecongrollingshareholder)JinanQinqi(Subsidiaryofthecontrollingshareholder)LuoyangNorthern(Subsidiaryofthecontrollingshareholder)HeadofMotorcycleIndustrySupervisoryCommitteeChairmanofthesupervisorycommitteeChairmanofthesupervisorycommitteeChairmanofthesupervisorycommitteeSupervisorSupervisor2007.
11-presentHanJinkeJinanQinqi(Subsidiaryofthecontrollingshareholder)LuoyangNorthern(Subsidiaryofthecontrollingshareholder)ChinaJialin(Subsidiaryofthecontrollingshareholder)ChairmanofthesupervisorycommitteeChairmanofthesupervisorycommitteeSupervisor2008.
11-present4.
Leavingandengagingofdirectors,supervisorsandseniorexecutives.
Inthereportterm,foralternationofjobtermsoftheBoard,SunFangcheng,MengWeidong,XuMingyue,andZhuZhiyongnolongertakethepositionsofindependentdirectorsoftheCompany.
AselectedattheShareholders'AnnualMeeting2007,WangJun,ChenXingshu,ChengYuanwei,andYuJianfengwereelectedthenewindependentdirectors.
YangRongqingwaselectedtheemployees'directorbytheEmployees'Congress.
Inthereportterm,forthealternationofjobtermsoftheSupervisoryCommittee,PengYiandWuChanglinnolongertakethepositionsofsupervisors,andChengFukainolongertakesthepositionofemployees'supervisor.
The1stProvisionalShareholders'Meeting2008electedHanJinkethesupervisor,andXinMingwenandLiRenbinwereelectedbytheEmployees'Congressasemployees'supervisor.
Inthereportterm,PanYafeileftthepositionofViceGeneralManagerduetochangeofjob.
II.
ParticularsabouttheemployeesAsofDecember31,2008,theCompanyhad3086employeesintotal.
Intermsofspecialtycomposition,ithad1586productionandsupportingemployees,478salesemployees,429technicians,60financeemployeesand533administrationemployees.
Intermsofeducationalstatus,12personovermastersdegree,734withbachelordegree,815collegesdiploma,and1525employeeswitheducationofjuniormiddleschoolorbelow.
TheCompanydoesn'tundertakeexpensesforretiredemployees.
ChapterVI.
AdministrativeStructureI.
AdministrativePositionIn2008,theCompanyenhancedtrainingprogramsforthedirectors,supervisorsandotherexecutives,furtherconsummatedtheoverallcontrollingsystemandfundamentalregulations,acceleratedriskcontrolandinternaladministrativereconstruction,upgradedthemanagementlevel.
Detailsareasthefollowings:1.
AccordingtotheCompanyLaw,SecuritiesLaw,andGuideforArticlesofAssociationofListedCompanies(Revised2006),andShareListingRulesofShenzhenStockExchange(Revised2008),withreferencetotheCompany'sbusinesspractice,theBoardrevisedtheArticlesofAssociationandproducedthe"AnnualReportCriteriaofIndependentDirectors",and"AnnualReportCriteriaofAuditingCommittee".
Theinternalcontrollingsystemwasfurtherimprovedtoensurethelegaloperationandscientificdecision-makingoftheBoardofDirectors,SupervisoryCommittee,andShareholders'Meeting.
2.
OnOctober23,2008,the"ProposalonMovingtheCompanyandEntrustChongqingJiansheMachineryCo.
,Ltd.
toCarryOutLandUsingArrangementandConstructions"wasexaminedandpassedatthe1stProvisionalShareholders'Meeting2008.
Uponcompletionofthisaction,theCompanyobtained717muoflandusingrights.
TheCompanynolongerrentlandfromJiansheIndustry,andmakesthepropertyrelationshipmoreclear.
Atpresentthepropertylicenseisunderprocessing.
II.
PerformanceoftheIndependentDirectorsDuringtheyear2008,theindependentdirectorshavefaithfullyperformedtheirduties,safeguardedtheCompany'sinterestsandreallyprotecttherightsandinterestsofmiddleandsmallinvestorsstrictlyaccordingtorelevantlawsandregulationssincetheycameintooffice.
Withinthescopeoftheirpowersandfunctions,theyparticipatedinthedecisionmakingoftheboardofdirectorsoftheCompany,foundoutthestatusoftheCompany'sbusinessoperationandmanagement,putforwardmanagementproposalsandactivelypromotedtheCompany'sdevelopment.
DuringtheperiodwhentheAnnualReportwasproduced,theindependentdirectorsobservedthearrangementofauditingandrelatedmaterials,andconductedcommunicationwiththeauditorsaftertheyissuedinitialopinions,discussedandinquiryontheAuditors'Reportfromtheirprofessionalpointsofview.
Inthereportperiod,the4independentdirectorsattended7boardmeetingsandattended2shareholders'generalmeetingsasnonvotingdelegates,seriouslyexaminedproposalsandexpressedindependentopinionsonimportantmattersincludingrelatedtransactions,externalinvestment,sharetransferringandtheengagementordismissalofdirectors.
Theindependentdirectorsdidn'traisedanyobjectionontheproposalsoftheBoard'smeetingnorothereventsotherthantheBoardmeeting.
NameofIndependentDirectorTimesofboardmeetingstopresentPresentedpersonallyPresentedbyproxyAbsentedChenXingshu7520YuJianfeng7700WangJun7700ChengYuanwei7700III.
Separationofpersonnel,asset,accounting,organization,andbusinessfromtheCompany'scontrollingshareholder1.
Personnel:TheCompanyestablishedindependentfunctionaldepartmentresponsibleforlabor,personnelandwagemanagementandformedlabour,personnelandwagemanagementsystem.
2.
Asset:TheCompany'sassetsareindependentandcomplete.
Theassetsareregistered,booked,accounted,andadministratedindependently.
3.
Finance:TheCompanyhassetupindependentfinancedepartment,formedindependentfinancialaccountingsystem,establishedandperfectedfinancialcontrolsystemandinternalcontrolmeasures,openedindependentbankaccountsandpaidtaxesindependently.
4.
Organization:TheCompanyhasestablishedanorganizationalstructurethatisindependentofitscontrollingshareholder.
TheorgansoftheCompanyareabletoexercisetheirfunctionsindependently.
5.
Business:TheCompanyhasindependentandcompletedevelopment,purchase,productionandmarketingsystem.
TheCompanyiscapabletoperformbusinessoperationindependently.
IV.
InternalControllingSystem(I)General1.
OrganizationstructureTheCompanywasincorporatedonJuly19,1995,andissueditssharesinShenzhenStockExchange.
Accordingtotherequirementofrelativelawsandregulations,withregardingtothepracticalsituation,theCompanyhasbeendevotingitselfinconstructingandimprovingofamatureinternalcontrollingsystem.
AcompleteadministrativestructureandsystemcomposedbytheShareholders'Meeting,BoardofDirectors,SupervisoryCommittee,andexecutiveteamhasbeenestablished.
TheorganizationstructurewasconstructedwithconcordancewiththeCompany'sbusinessoperationandwiththeirrespectiveproperties,functions,andcommunicationchannels.
PracticallytheCompanyhasestablishedthedepartmentsincluding:operationplanning,HR,finance,supplying,qualitycontrol,andauditingoffice.
2.
ConstructionofinternalcontrollingsystemThroughimplementingofthe"ArticlesofAssociation","Shareholders'MeetingCriteria","BoardMeetingCriteria","SupervisoryCommitteeMeetingCriteria",and"GeneralManager'sWorkingCriteria",theCompanyhassetthedutiesandfunctionsoftheShareholders'Meetings,BoardofDirectors,SupervisoryCommittee,andseniorexecutivesclearly.
Whilethe"RulesofIndependentDirectors"ishelpingtofullyapplytheperformanceoftheIndependentDirectors.
Atpresent,movingoftheCompanyisnotcompletedyet.
TheCompanyperformedmajoradjustmentontheexistingadministrationstructuretobetteroperatethenewfactories.
Controllingsystemandorganizationstructurearesetuptorealizeprofessionaladministrationandmeetwiththeneedsofthenewfactory,newequipment,andnewtechnologies,enhancerespondingcapabilitytothemarketmovementandquickdecision-makingmechanism.
Asforthestrategicsystem,theCompanykeepsconsummateitsstrategicorientationandtarget,andrevisedthe"3-yearsplan";establishedascientificoperationassessmentsystem,focusingonthebusinessbudgeting,furtheracceleratedbudgetmanagement,operationsupervising,andperformanceassessmentsystem.
Infinancialadministrationsystem,theCompanyrebuiltthestructureofcapital,cost,priceandclearingmodulestoclarifytheresponsibilities,rights,andbenefits.
Promotedthenewclearingmode,andreal(3)Financialstatus(inRMB0'000)ItemsYear2008year2007Changedby%Turnover259,042263,876-1.
83%Operationprofit-20,1301,029-2056.
27%Netprofitattributabletotheshareholdersofthelistedcompany15,7321,2061204.
48%Causesofchange:DecreasingofoperationprofitwascausedbydecreasingofexporttaxrefundingratesinceJuly1,2007,whichledtoincreasingofexportcost,increasingofrawmaterialpricescausedincreasingofcosts,increasingofRMBexchangeratecausedincreasingofexchangelosses,andincreasingofloaninterestscausedincreasingoffinancialexpenses.
Increasingofnetprofitwascausedbyfactorymovinggainstransferred.
2.
MajoradvantagesanddifficultiesoftheCompanyFirstly,theCompanyhasbeenleadingitsbusinesstodiversitydevelopmentroute,furtherenhancedthe"5-cores"strategy,successfullyobtainedcoretechnologiesofmotorcyclemanufacturing,andconsummatedtheproductstructure.
Theengineplatformhasobviousadvantagesinaspectsofcomfort,energy-saving,consistency,andenvironmentalprotection,whichmaysatisfytheNationalStandardBandIIIwithlowercosts.
Especialafterimplementationofgastax,theenergy-savingtechnologywillbringmorecompetitivepowertotheCompany.
Withthemainframeof"1corepowerplatform,3framesystems,and5basicmodels"theCompanyhasdevelopedafull-scaleproductionline,andlaidasoundfoundationfordevelopment.
Secondly,theCompanyhasnewlyconstructed69productionlines,reformed9impactextrusionlinesandformedthecapabilityofonemillionunitsperyear,whichisleadingtheindustryinthecountry.
Themechanicalprocesshasbeenequippedwith130importeddigitalprocessingsystem,whichistheonlyoneinmotorcycleindustryofthecountry.
Inpaintingsection,robotlasertechniquewasusedwhichmadetheoutlookofoiltanksreachedinternationalstandard.
Robotweldinglinesaretheadvancedinautomobileindustry.
Assemblinglinesarethestate-of-arttechnologiesinthecountry.
AdoptingofJOSsystem,DQMSsystem,andcoordinatedofficeplatformhassignificantlyincreasedtheoperationefficiencyandmarketpower.
Thirdly,theCompanyfurtherempoweredtheinternalmanagement.
Adjustmentoperationsweredoneonproductstructure,marketstructure,personnelstructure,andworkflowstructure,whichmadesolidfoundationforthebusinessoperationofthisyear.
Year2009isgoingtobeheyearofmajorchangebothexternalandinternalsituation.
Theglobalfinancialcrisis,implementationofnationalpolicies,andadjustmentinmacroeconomywillcauseincreasinginuncertaintyinthemarket.
ThisisbringinggreatchallengetotheCompany,andgreatopportunitiesaswell.
Followingwiththecompletionoffactorymoving,ouradvantageswillbefurtherenhanced.
3.
MajorbusinessanditsoperationTheCompanyismainlyengagedinthefinalassemblyofmotorcycles,mechanicalprocessingandsalesofpartsandaccessoriesofmotorcyclesandautomobiles,manufacturingofmouldsandjigs,standardmouldracks,relevanttechnicalservices,purchaseandsalesofhouseholdelectricalappliances,rawmaterialsandequipment.
(1)Geographicalandindustrialdistributionofincomeandprofitfrommajorbusiness.
Businessgeographicdistribution(inRMB0'000)RegionsMajorbusinessturnoverMainbusinessprofitNorth19,124-403East32,5513,251Mid-south16,7311,487South-west108,9463,609North-east13,7731,849North-west15,3562,331Totalofdomesticsales206,48112,124Asia19,362419Europe,Oceania7,166228America5,151208Africa18,834631Totalofoverseassales50,5121,487Total256,99413,611Businessindustrialdistribution(inRMB0'000)IndustryMajorbusinessturnoverMainbusinessprofitIndustry256,99313,610(2)Thebusinessaccountedmorethan10%ofsaleincomeoroperationprofit(inRMB0'000).
BusinessTurnoverOperationcostOperationprofitMotorcycleandparts223,990217,1126,878Compressorforvehicleairconditioner33,00326,2716,733(3)MajorsuppliersandclientsDuringthereportperiod,thecapitalcostofpurchasingfromtopfivesuppliersaccountsfor19.
56%oftheannualpurchasingcostamount.
Duringthereportperiod,thesaleamountfromtopfivecustomersaccountsfor21.
67%ofthetotalsaleincome.
4.
Composingandchangingofassetsandexpensesinthereportterm.
Assetcomposition(RMB0'000)ItemsEndof2008Portionintotalassetatendof2008%Endof2007PortionintotalassetattheendRatioofchange(%)ofyear2007%Notesreceivable8,5163.
13%5,9582.
35%42.
93%Accountreceivable13,3294.
89%18,5147.
31%-28.
01%Otheraccountreceivable18,7026.
87%2,0070.
79%831.
66%Inventories19,6897.
23%30,10711.
88%-34.
60%Long-termshareequityinvestment58,51521.
48%52,37620.
67%11.
72%Fixedassets55,66720.
44%33,18213.
10%67.
76%Constructioninprocess2,3930.
88%9550.
38%150.
68%Short-termloans59,08321.
69%55,29421.
82%6.
85%Long-termborrowings-0.
00%-0.
00%Expensecomposition(RMB0'000)ItemsYear2008Year2008Changedby%Operationalexpenses19,37318,5384.
50%Administrativeexpense9,4427,07933.
38%Financialexpenses5,7044,61523.
59%Incometax-679319-312.
85%Causesofchange:(1)Significantincreasingofreceivablenoteswascausedbyincreasingofliquidityofbankacceptednotescausedbytightmacromonetarycontrol,andtheCompanyenforcedcollectingofpaymentsbywayofnotes.
(2)Decreasingofinventoryinthereporttermwascausedbymovingoffactoriesledtodecreasingofproductioninthe4thquarter.
(3)Increasingoflong-termequityinvestmentwascausedbytheinvestmentgainscontributedbyChongqingJiansheYAMAHAMotorcyclesCo.
,Ltd.
,ZhuzhouJiansheYAMAHAMotorcycleCo.
,Ltd.
andChongqingPingshanTaikaiCarburettorCo.
,Ltd.
(4)Increasingofshort-termloanswascausedbyenlargingoffinancingactivitiesinthereportterm;(5)IncreasingofmanagementexpenseswascausedbyenforcingofR&Dandincreasingofwages;(6)Increasingoffinancialexpenseswascausedbyincreasingofbankloaninterests5.
Cashflowstatusinthereportterm.
(RMB0'000)ItemsYear2008Year2007Changedby%Cashflowgeneratedbybusinessoperation,net498.
0010,368.
54-95.
20Netcashflowgeneratedbyinvestment-11,016.
00-7,570.
4445.
51Netcashflowgeneratedbyfinancing-2,019.
00-12,876.
16-84.
326.
Obtainingoforders,useofequipment,salesandoverstockInyear2008,theCompanyintroducedJOSsystemandeffectivelyresolvedthe"interface"problembetweenR&Dandproduction,productionandsales,salesandR&D.
Thisenableallofthesectionsworktogether,thesupplychainwassystematicallyupgraded.
Productiontimingandorganizingwerewellcoordinated,thereforebettercontrolledtheinventorylevel.
Atendofthereportterm,themotorcycleinventorywas25.
9thousandunits,whichdecreasedby13.
55%overthesameperiodoflastyea;whiletheinventoryofcompressorswas50.
6thousandunits,decreasedby31.
49%fromthesameperiodoflastyear.
7.
OperationandperformanceanalysisofmainsubsidiariesandaffiliatedcompaniesNameofcompaniesSharesheldRegisteredcapitalRMB0'000CapitalscaleRMB0'000MajorproductsorserviceNetprofit(RMB0'000)ChongqingJiansheSalesCo.
,Ltd.
100.
00%1,20067,576Salesofmotorcycleandparts-631ChongqingNorthernJiansheImport&ExportCo.
,Ltd.
100.
00%6,03818,459Internationaltradingandagencyofvariousmerchandisesandtechnologies(otherthanthoserestrictedbynationalgovernment)417ChognqingJiansheAutomobileAir-conditionerCompressorCo.
,Ltd.
100.
00%16,00047,156Production,sales,andservicesofautomobileair-conditionersandparts-4,010ChengduJiansheMotorcycleSalesCo.
,Ltd.
100.
00%(indirectly)50752Salesofmotorcycles-136HuhehaoteJiansheMotorcycleSalesCo.
,Ltd.
100.
00%(indirectly)51Wholesaleandretailingofmotorcyclesandparts0GuangxiJiansheMotorcycleSalesCo.
,Ltd.
52.
00%(indirectly)150137Salesofmotorcycles1ChongqingJiansheMotorcycleSalesCo.
,Ltd.
100.
00%(indirectly)50140Salesofmotorcycles-5ShanghaiJiansheMotorcycleCo.
,Ltd.
51.
00%1,6002,608Manufacturingandsalesofmotorcycles,lightmotorcycles,scooters.
15ChongqingJiansheYAMAHAMotorcycleCo.
,Ltd.
50.
00%37,993119,146Manufacturingandsalesofmotorcyclesandengineparts11,045ZhuzhouJiansheYAMAHAMotorcycleCo.
,Ltd.
50.
00%49,78664,304Manufacturingandsalesofmotorcyclesandengineparts694ChongqingPingshanTaikaiCarburetorCo.
,Ltd.
49.
00%15,87615,173Manufacturingandsalesofcarburetors,generalgasenginesandparts191Inthereportterm,NingboJiansheMotorcycleCo.
,Ltd.
wassuspendedinproductionduetofaultoperation.
Thebusinessregistrationprocedureswerenotcompletedyet.
TheCompanyhasprovidedlong-terminvestmentimpairmentprovisiononthisproject,andthiscompanywasnotincludedintheconsolidationrange.
8.
Inthereportterm,theCompanyhadnospecial-aimedsubjectcontrolledwhichshouldcombinedintothereport.
II.
Prospect1.
DevelopingoftheindustryandmarketsituationtheCompanyisfacingTheglobalfinancialcrisishascausedeconomicaldeclineinEuropeandAmerica.
Asanexport-orientedindustry,motorcyclemanufacturingindustryofthecountrywasimpactedatcertainlevel.
Decliningofglobaldemandhascausedlargeamountofoverstock.
Manyinternationalbuyersaresufferingfrombrokencapitalchain,thussomeofthepaymentarehardtoretrieve.
Someofthesmallermotorcyclemanufacturershasretrievedfromthearea.
Followingwiththedeepenofthefinancialcrisis,theinternationaljoint-venturesareturningtheirattentiontodomesticmarket.
Thiswillcausemorecompetitioninthedomesticmarket.
Meanwhile,toeliminatethestockbeforeenforcingofNationalStandardBandIII,someofthemanufacturerswillreleasetheproductivitiesbroughtbypreviousinvestment,andadoptlowpricestrategy,whichmaymakethecompetitionmoresevere.
2.
OpportunitiesandchallengesDomesticeconomicalpolicieshavebroughtgreatchallengesandopportunitiestotheCompany:Firstly,thepreferencepoliciesforcountrysidemarketwillbenefitthedevelopingoftheseareas.
AmongtheRMB4000billionstimulationschemeofthecentralgovernment,therearethreepolicestopromoteconstructionofnewcountrysideincludingtwopoliciestoacceleratetheconstructionofcountrysideroadconstruction.
Thiswillcreateagoodexternalconditionforthemarket.
Meanwhile,followingwiththeimplementationofanumberofpolicies,farmers'incomewillbeincreased.
Consummateofsocialsecurity,especiallyhealthcareandeducationpolicies,willencouragefarmerstospendtheirmoney.
Alongwiththeimplementationoffueltaxpoliciesandlimitationonsmall-engine-drivebicycles,motorcyclewillbecometheprimarychoiceforfarmers.
Motorcyclehasbeenincludedinthelistofcountryside-supportingproducts,whichmeansfarmerswillenjoynationalsubsidywhenbuymotorcycles.
Thiswillstimulatetheconsumingofthecountrysidemarket.
Secondly,themacrofinancialpoliciesarepositivetoloweroperationcosts.
Thenationalgovernmenthasadoptedarelativelyloosemonetarypolicies,broughtdownthebaseinterestrateofloans,transformedVATscheme,increasedexporttax-refunding,keptsteadyRMBexchangerate,thereforetheoperationcostsoftheCompanymaybedecreased.
Thirdlythedeclineofmaterialpriceswillbenefittheadjustmentofproductstructure.
Recently,thepricesofrawmaterialshavebeendeclining.
WearegoingtousethisopportunitytofullydeveloptheadvantagesinR&D,technologies,andmarketreputation,speedupproductstructurereconstruction,invadethehigh-endmarketandestablishagoodimageinthemarket.
3.
DevelopmentstrategyandbusinesslayoutoftheCompany(1)FullyacceleratemotorcyclesalestobreakthroughthebottleneckMovingtothenewfactoryareaenablestheCompanytorealizeabreakthroughinproductivity.
Themarketbottleneckeffectbecomesmoreobviousthough.
TheCompanywillfurtherenforcesaleschannelconstructionandafter-salesservices.
Theheadquartersetsitstargetat50%ofincreasingdependingonthedevelopingofcountrysidemarket.
Intheinternationalmarket,theCompanywilladoptacautiousattitudetocontroltherisksofforeigncurrencyexchange.
Optimizingandadjustmentwillbedoneonexistingkeymarkets,furtherenhancequalitycontroloftheheadquarter.
AinternationalmarketpatternwillbedevelopedtosuittheCompany'sproductline.
(2)EnforcethemarketdevelopingofA/Ccompressor,enhanceprofitabilityInthisyear,thetargetistoincreasethesalesvolumebyover9.
7%andsalesincomebyover6%.
FollowingwiththeCompany'spoliciesandstrategies,furtheradjusttheproductstructure.
Focusingonreducingcostsbyusingofhome-madeproductstoincreaseprofitability.
Increasingoperationefficiencybyadoptingoftargetmanagementprogram.
BasingonA/Ccompressorproducts,toexplorenewdevelopmentspace,andsetfootintocarmanufacturingarea.
4.
PlanforthenewyearTargetofyear2009:motorcyclesalesvolume1.
7millionunits,including620thousandofsalesbytheheadquarter;enginesalesvolume105thousandunits.
A/Ccompressorsalesvolume800thousandunits.
SalesincomeofRMB5.
65billion,includingRMB2.
2billionofheadquartermotorcyclesales,andRMB350millionofA/Ccompressor.
5.
NeedsandplanonfundforstrategicdevelopmentTofurtherrealizetheCompany's"5-core"strategy,theCompanywillenhanceinvestmentindevelopingofnewproducts.
InvestmentispredictedtoaroundRMB63million.
InvestmentwillbefinancedbytheCompanyitself.
6.
Possiblefactsthatwillinfluencetheproductioninanegativeway(1)InfluenceoftheglobalfinancialcrisisDepressingofmarketconfidence,increasingofunemployment,anddepressingofincomeexpectationhasenforcedthecautiousconsumingattitudeinthemarket.
Ontheotherside,globaleconomicaldeclinehascausedtradeprotectionismandincreasingofcontractdefaultingrate.
GreatrisksattachedtosuppliersanddealersoftheCompanytobankrupt.
(2)RisksinRMBexchangeratestillexist.
(3)Aftercompletionoffactorymoving,thetransportationexpenses,foodexpenses,andfixedassetdepreciationhasbeenincreasingsignificantly,whichbroughtuptheoperationcosts.
III.
Investmentinthereportterm.
1.
Applicationofraisedfundinthereportterm.
Thereisnonewraisedcapitalsintheperiod,andnousingofraisedcapitalofthepreviousterm.
2.
Applicationofnon-financingproceedsinthereporttermInthereportterm,theCompanywasmovingtothenewsite.
BudgetforthemovingwasRMB778million.
Asoftheendofreportterm,RMB512.
2733millionwasinvestedaccumulatively.
IV.
TheCompanyconductedneithercorrectingofsignificantaccountingerrorsnorretrospectiveadjustmentissuesinthereportterm.
V.
DailyworkoftheBoard1.
TheBoardofDirectorsseriouslyconductedtherightsbytheArticlesofAssociationoftheCompany,basedonthemanufacturingandoperationaffairs,theBoardofDirectorsheld8meetingstotallyintheperiod.
(1)The20thmeetingofthe4thtermofBoardwasheldonApril1,2008,theresolutionsofthemeetingwerepublishedontheApril4,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(2)The1stmeetingofthe5thtermofBoardwasheldonApril29,2008,theresolutionsofthemeetingwerepublishedontheApril30,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(3)The2ndmeetingofthe5thtermofBoardwasheldonJuly18,2008,theresolutionsofthemeetingwerepublishedontheJuly19,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(4)The3rdmeetingofthe5thtermofBoardwasheldonJuly30,2008,theresolutionsofthemeetingwerepublishedontheAugust4,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(5)The5thmeetingofthe5thtermofBoardwasheldonAugust5,2008,theresolutionsofthemeetingwerepublishedontheAugust8,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(6)The5thmeetingofthe5thtermofBoardwasheldonAugust19,2008,theresolutionsofthemeetingwerepublishedontheAugust20,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(7)The5thmeetingofthe5thtermofBoardwasheldonOctober6,2008,theresolutionsofthemeetingwerepublishedontheOctober7,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
(8)The7thmeetingofthe5thtermofBoardwasheldonOctober23,2008,theresolutionsofthemeetingwerepublishedontheOctober27,2008issuesofSecuritiesTimesandHongKongCommercialDaily.
TheaboveresolutionswerealsopublishedontheofficialwebsiteofShenzhenStockExchange:http://www.
cninfo.
com.
cn.
2.
Therewereoneshareholders'generalmeetingandoneshareholders'provisionalmeetingheldinthereportyear.
TheBoardhasexecutedalloftheresolutionsadoptedbythemeeting.
Amongthem,theprofitdistributionplanforyear2007was:neitherprofitdistributionnorcapitalizingofcommonreserveswouldbecarriedout.
3.
Auditingcommittee'sperformingofdutiesAccordingto"WorkingCriteriaofAuditingCommittee"oftheCompany,and"NoticeonPreparingofAnnualReport2008byListedCompanies"issuedbyChinaSecuritiesRegulatoryCommission,theAuditingCommitteewasperformingitsdutiesasthefollowings:(1)TheAuditingCommitteeheldits1stmeetingof2009onFebruary3,2009.
Thefinancialstatementsof2008providedbytheaccountingdepartmentwasexaminedatthemeeting.
TheAuditingCommitteedeemsthefinancialstatementswerecomplyingwiththeEnterpriseAccountingStandard,theaccountingpoliciesandestimationswerereasonable,andtheywerereflectingthesituationsregardingassets,businessperformance,andcashflowinthereportterm.
ItisapprovedtosubmittotheCPA.
(2)TheAuditingCommitteeconductedcommunicationwiththeCPAsonMarch20,2009.
OnApril13,2009,theCPAprovidedinitialopinionstotheCompany.
April16,2009,theAuditingCommitteeconvenedthe2ndmeetingof2009,andexaminedagainonthefinancialstatements,anddeemed:PreparingofthefinancialstatementswerecomplyingwiththeEnterpriseAccountingStandard,expenseswerereasonable,recognitionofgains,expensesandprofitwerecomplyingwiththelaws,regulationsandrelativerules,andfrankly,completelyreflectingthefinancialsituation,businessperformanceandcashflowoftheCompany.
ItwasapprovedtobesubmittedtotheBoardofDirectors.
Themeetingalsosummarizedtheauditingworksof2008donebytheCPAs:DaxinCertifiedPublicAccountantsconductedtheauditingworksresponsiblyanddiligentlyaccordingtotheChinaCPAStandard,andissuedopinionsontheaccountingstatementsobjectivelyandfairly.
TheCommitteesuggestedtoextendtheservicesofDaxinCertifiedPublicAccountantsastheauditorof2009.
WithreferencetothepaymenttotheCPAinpreviousyearsandthewildlyacceptedlevelinthearea,theCommitteesuggestedRMB650thousandofauditingfeetotheCPA.
4.
Remuneration&AssessmentCommittee'sperformanceofdutiesAccordingtotheWorkingCriteriaofRemuneration&AssessmentCommittee,theCommitteeperformedthedutiesasthefollowing:OnApril16,2009,theCommitteeperformedassessmentontheexecutives'performancesaccordingtothe"AssessmentandRewardSystemofExecutives"andwithreferencetothebusinesspracticeoftheCompany.
TheCommitteedeems:theremunerationleveloftheexecutivesinyear2008wascomplyingwiththe"AssessmentandRewardSystemofExecutives".
TheCompanydidn'tconductedanyshareequityincentiveprogramuptothereportterm.
VI.
Profitdistributionforyear2008AccordingtothenewlyreleasedEnterpriseAccountingStandard,netprofitattributabletotheownersoftheCompanyin2008wasRMB157.
32million,undistributedprofitofRMB-753.
94million.
AccordingtoArticle153oftheArticlesofAssociation,theprofitrealizedinthereporttermareusedtomakeuppreviouslosses,thereforenoprofitdistributionorcapitalizingofreserveswillbeimplemented.
VII.
TheCompanyhasdecidedtoemploySecuritiesTimesandHongKongCommercialDailyastheofficialinformationdisclosurepresses.
ChapterIX.
ReportoftheSupervisoryCommitteeI.
MeetingsoftheSupervisoryCommitteeTheSupervisoryCommitteeheld6meetingsinthereporttermasthefollowins:1.
The19thmeetingofthe4thtermofCommitteewasheldonApril1,2008,thefollowingsweretheresolutionsadopted:(1)AnnualWorkReport2007oftheBoard(2)SupervisoryCommittee'sworkreportfor2007.
(3)Businessreportof2007andplanfor2008.
(4)Profitdistributionplan2007.
(5)SummaryofauditingworksdonebytheCPAforyear2007andextendingoftheauditingservicesoftheCPAforyear2008.
(6)Reportonself-evaluationofinternalcontrolling.
(7)AnnualReport2007andSummary.
(8)Proposalofroutinerelatedtransactionsofyear2008.
(9)Proposalonterm-alteringoftheSupervisoryCommittee.
2.
The1stmeetingofthe5thtermofCommitteewasheldonApril29,2008,thefollowingsaretheresolutionsadopted:(1)ElectChenFengzhentheChairpersonofthe5thtermofSupervisoryCommittee.
(2)The1stQuarterlyReportof2008.
3.
The2ndmeetingofthe5thtermofSupervisoryCommitteewasheldonJuly30,2008.
TheproposalonentrustingChongqingJiansheMachineryCo.
,Ltd.
tocarryoutlandexpropriationandconstructionofnewfactorieswasexaminedandpassed.
4.
The3rdmeetingofthe5thtermofCommitteewasheldonAugust5,2008,thefollowingsweretheresolutionsadopted:(1)InterimReport2008andSummary.
(2)ProposalonrevisingtheArticlesofAssociation.
(3)Proposalonanticipatingofroutinerelatedtransactionsin2008.
(4)Proposalonprovidingguaranteestofullyownedsubsidiaries.
(5)Proposalonacceptingguaranteesfromtherelatedcompanies.
(6)Proposalonpredictingofnewloans.
(7)ProposalaboutMr.
PengYi'sresigningfromthepositionofsupervisor.
5.
The4thmeetingofthe5thtermofSupervisoryCommitteewasheldonOctober6,2008.
TheproposalonnominatingMr.
HanJinketobethesupervisorofthe5thtermofSupervisoryCommitteewasexaminedandpassed.
6.
The5thmeetingofthe5thtermofSupervisoryCommitteewasheldonOctober23,2008,the3rdQuarterlyReport2008wasexaminedandpassedatthemeeting.
II.
IndependentopinionoftheSupervisoryCommittee:1.
OperationAccordingtotheLawIntheopinionoftheSupervisoryCommittee,theCompanyconducteditsoperationinastandardizedway,implementedvariousresolutionsinapracticalway,thedecision-makingprocedurescompliedwiththerelevantprovisionsofthePRCCompanyLawandtheArticlesofAssociationoftheCompany;theCompanyestablishedcompleteinternalcontrolsystem;directorsandseniorexecutivesdidtheirjobswithduediligenceinawork-respectingandhonestway,andperformednoactionagainstthelaws,regulations,theArticlesofAssociationorharmfultotheinterestoftheCompany.
2.
InspectionoverthefinancialpositionTheCommitteehasconductedinspectionsontheimplementationofthefinancialregulationsandsituations.
ThesupervisorsdeemthattheFinancialReport2008hasfranklyreflectedthefinancialsituationandbusinessperformanceinthereportterm.
3.
SupervisionontheusingofproceedsraisedthroughshareplacingProceedscarriedoverfrompreviousyearswerenotusedinthereportterm.
4.
RelatedtransactionsAlloftherelatedtransactionswiththesubsidiariesofthecontrollingshareholderinthereporttermwereconductedonmarketpriceunderprincipleoffairtrade.
Noneofthemhasoffendedtheinterestsoftheshareholdersorthecompany.
ChapterX.
SignificantEventsI.
Materiallawsuitorarbitrationinthereportterm1.
Lawsuitandarbitrationissuesnewlyraisedinthereportyear(1)SuBoxingandHuoJinghesuedtoGuangdongFoshanMiddleCourtagainsttheCompanyonMarch11,2008fortheoutlookdesignpatent.
TheyaskedforpenaltyofRMB100thousandandinvestigationfeeofRMB5900fromtheCompanyandFoshanNanhaiDaliYinjixiMotorcycleAgent.
Throughinvestigation,thesuedproductswerepurchasedfromoneofthesuppliersoftheCompany.
ThecourttrialwasopenedonMay19,2008,theCompanywasjudgedtopayRMB50thousandtotheplaintiffandthesuingfees.
TheCompanyhasappealedtotheprovincialhighcourt,andthesecondarytrialhasnotbegunyet.
(2)ChongqingHuafuMotorcycleSalesCo.
,Ltd.
suedtoChongqingJiulongpoCourtonApril7,2008againstChongqignJiansheSalesCo.
,Ltd.
forthedisputeregardingsalescontract.
ItaskedforthetradeofRMB3.
3383million,andtodrawthegoodsandpayRMB531.
3thousandaccordingtothecontractengagedbeforehand.
Throughnegotiation,thetwopartiessettledwithanagreement.
AccordingtotheCivilMediationAgreement,ChongqingJiansheSalesCo.
,Ltd.
willsettletheaccountoninstallmentbasisbeforeDecember31,2008.
Uptopresent,thepaymenthasbeendisbursedandthecasewasclosed.
(3)OnSeptember8,2008,ChongqingHuiyaoAutosuetotheNo.
5MiddleCourtofChongqingforthedisputeabouttradecontract.
ItclaimsChongqingNorthJiansheImport&ExportCo.
,Ltd.
topayRMB13.
332millionoftradepaymentplusRMB1.
2449millionofinterestlossandthesuefee.
ThiscasewasontrialonDecember1,2008attheNo.
5MiddleCourtofChongqing,andwasnotjudgedyet.
(4)ChongqingHongtianInternationalLogisticsCo.
,Ltd.
suetoWuhanMarineCourtonSeptember2,2008.
ItclaimsChongqingWeiranTechnologiesDevelopmentCo.
,Ltd.
topayfreightagencyfee,freight,trailerfee,stockfee,andoverduefeetotalledtoRMB1.
3976millionplusRMB349.
4thousandofpenaltyandthesuingfee.
Asthe3rdresponsibleparty,ChongqingNorthJiansheImport&ExportCo.
,Ltd.
wasclaimedforjointliabilities.
ItwasontrialinWuhanMarineCourtonDecember21,2008.
Nojudgmenthasbeemadeuntilthedateofthisreport.
(5)HuSongraisedlawsuittoNanchangQingyunpuDistrictCourtforthedisputeaboutroadaccidentinJuly2008.
HeclaimedforRMB58.
9thousandofmedicalandchargeforworkhourlossesfromWangYongsong,thedriver,ChongqingJiansheSalesCo.
,Ltd.
,andPeople'sLifeInsuranceJiulongpoBranch.
ThiscasewasontrialinNanchangQingyunpuDistrictCourtandjudgmentissuedonSeptember25,2008requiredPeople'sLifeInsuranceJiulongpoBranchtopayRMB45.
5thousand,ChongqingJiansheSalesCo.
,Ltd.
takesthejointliability.
Thejudgmenthasalreadytakeneffect.
(6)WangKesuetoChongqingJiulongpoLaborDisputeArbitrationCommissiononOctober9,2008,claimedforthecompensationforbreachofthelaborcontractofRMB35thousand.
Thiscasewasnotontrialyetuntilthedateofthisreport.
2.
Majorlawsuitandarbitrativeissuesclosedinthereportterm.
(1)FubangShipping(Shenzhen)Co.
,Ltd.
ChongqingBranchraisedthelawsuitinWuhanMarineCourtagainstChongqingNorthernJiansheImport&ExportCo.
,Ltd.
forthepaymentofshippingcontractamountedtoRMB628.
5thousand(includingfreightofRMB616.
2thousandandpenaltyofRMB12.
3thousand).
CourttrialswereopenedonAugust27andNovember22,2007.
OnDecember3,2007,(notificationsdeliveredinMarch2008),theCourtrejectedthelawsuitofFubangShipping.
Fubanghassuedtothehighercourt.
AsopenedfortrialtwiceinHubeiProvincialHighCourt,FubangCo.
retrievedthelawsuit.
Asofthedateofthisreport,HubeiProvincialHighCourthasapprovedtoretrievethelawsuit,the1stjudgmenttakeseffectandthiscasewasclosed.
(2)ChongqingHongtianLogisticsCo.
,Ltd.
raisedthelawsuitinWuhanMarineCourtonMay20,2007againstChongqingNorthernJiansheImport&ExportCo.
,Ltd.
forthepaymentofshippingcontractamountedtoRMB749thousand(includingfreightandotherexpensesamountedtoRMB713thousand,andpenaltyofRMB36thousand).
ThiscasewasputonfirsttrialbyWuhanMarineCourtonSeptember3,2007andrejectedtheappealoftheChongqingHongtianLogisticsCo.
,Ltd.
(CivilJudgment(2007)Wu-Hai-Fa-Shang-Zi197issuedonDecember3,2007.
TheprosecutorhasraiseditsappealtoHubeiProvincialHighCourt.
AftertrialonMarch26,2008inHubeiHighCourt,theprosecutorhasretrievedtheappealonJune25,2008.
Thiscasewasclosedthereof.
(3)ShuchengDaqiangMotorcycleSalesCo.
,Ltd.
appealedtoHanhuiShuchengCountyCourtonOctober8,2007againstChongqingJiansheSalesCo.
,Ltd.
–oneoftheCompany'ssubsidiaries,forthecancellingofjointoperationcontract.
ItclaimedforRMB350thousandofcompensationforcancellingoftheAgreement,RMB100thousandofmaintainingservicefee,refundingthedepositofRMB1000,andundertakingtheappealfees.
TrialwasopenedinShuchengCountyCourtonNovember23,2007andjudgmentwasmadethatChongqingJiansheSalesCo.
,Ltd.
shouldpaythecompensationofRMB286.
6thousand,refundthedepositofRMB1000,andcoverthelawsuitfeeofRMB6000.
ChongqingJiansheSalesCo.
,Ltd.
hassuedforsecondtrialandwasrejectedbyLiu'anMiddleCourtonSeptember23,2008.
Asofthedateofthisreport,ShuchengCourthasexecutedthe1stjudgementandtheSalesCo.
haspaidRMB304.
8thousand.
II.
Nobankruptcyorrestructuringissueshappenedinthereportterm.
III.
Holdingofotherlistedcompany'ssharesattheendofreportterm(RMB0'000)StockCodeStockIDInitialinvestmentShareportionBookvalueatendoftermGain/lossofthereporttermChangeofowners'equityinthereportterm000536MinMindong80.
640.
23%135.
24----Total80.
64135.
24Uptotheendofreportterm,theCompanyhasn'tparticipatedinanyinvestmentinfinancialinstitutionssuchascommercialbanks,securitiescompanies,insurancecompanies,trustcompanies,orfuturecompanies,orparticipatedinanycompanywhosesharesaregoingtobeplacedtothestockmarket.
TheCompanyconductednotradingofotherlistedcompany'ssharesinthereportterm.
IV.
Noassetacquisition,takeoverormergeroccurredinthereportterm(RMB0'000)V.
FormajorrelatedtransactionspleasegototheFinancialStatementsVI.
Importantcontractsandimplementing1.
Theeventsconcerningthetrusteeship,contractingorleaseofassetsinwhichtheCompanywasinvolvedInthereportterm,theCompanycontinuedtoleasefixedassetstoJiansheGroup.
ThisleasingbusinessinvolvedoriginalvalueoffixedassetsofRMB17.
33million.
AnnualrentalwasRMB8.
29million.
TheaccumulatednetincomewasRMB4.
62million.
2.
Majorguarantees(RMB0'000)ExternalGuarantee(Excludecontrolledsubsidiaries)GuaranteeprovidedtoDateofcontractAmountguaranteedTermCompletedornotRelatedpartyornotTotaloccurredinthereportterm-Totalofbalanceofguaranteeattheendofreportterm-GuaranteeprovidedtocontrolledsubsidiariesTotalofguaranteeprovidetocontrolledsubsidiariesinthereportterm12,943Totalofbalanceofguaranteeprovidetocontrolledsubsidiariesinthereportterm12,943Totalofguarantee(includingprovidedtocontrolledsubsidiaries)Totalofguarantees12,943ProportionofthetotalguaranteeinthenetassetoftheCompany29.
45%Including:Guaranteeprovidedtoshareholders,substantialcontrollerandtheirrelatedparties-Amountofguaranteeexceededthe50%partyofthenetprofit-Amountofguaranteeprovidedtoobjectswithover70%ofliability/assetratio,directlyorindirectly12,9433.
Inthereportperiod,theCompanydidnotentrustanyotherpartytomanagementitscashassets.
Itdoesnotplantodosointhefuture.
VII.
Noneoftheshareholderswhoareholdingmorethan5%oftheshareequityoftheCompanyhasconductedanycommitmentevent.
VIII.
Capitaladoptionandclearingin2008Settledin2008Balanceofnon-operationalcapitaladoptedbytheholdingshareholderanditsaffiliates(RMB0'000)January1,2008OccurredintheyearDecember31,2008Totalofadoptedin2008andnotrepaid(RMB0'000)Settledinthereportterm(RMB0'000)WayofclearingAmountcleared(RMB0'000)Clearingmonth0.
0018,409.
0018,409.
000.
000.
00Statementofnon-operationaladoptionofcapitalbytheholdingshareholderanditsaffiliates;Statementonnewcapitaladoptionin2008,responsibleperson;IfsettlementofcapitaladoptionnotcompletedasofendofAtthe1stprovisionalshareholders'meeting2008,"TheproposalonfactorymovingandentrustingChongqingJiansheMachineryCo.
,Ltd.
tomakearrangementforexpropriationoflandandconstructionofbuildings"waspassed.
AccordingtotheExpropriationandCompensationAgreement,thecompensationpayabletotheCompanywasRMB526.
29million.
Attheendof2008,theCompanyhasreceived2008,pleaseprovidereasons,measuresusedtosettletheaccountRMB342.
20millionfromJiansheIndustry,therestofRMB184.
09millionhasbeenpaidtotheCompanybeforethesigningdateofthisfinancialreport.
IndependentdirectorsoftheCompanyissuedthefollowingopinionsoncapitaladoptionandprovidingofexternalguaranteesasthefollowing:1.
Atthe1stprovisionalshareholders'meeting2008,"TheproposalonfactorymovingandentrustingChongqingJiansheMachineryCo.
,Ltd.
tomakearrangementforexpropriationoflandandconstructionofbuildings"waspassed.
AccordingtotheExpropriationandCompensationAgreement,thecompensationpayabletotheCompanywasRMB526.
29million.
Attheendof2008,theCompanyhasreceivedRMB342.
20millionfromJiansheIndustry,therestofRMB184.
09millionhasbeenpaidtotheCompanybeforethesigningdateofthisfinancialreport.
AsofDecember31,2008,theCompanyhasn'tinvolvedinanycapitaladoptionbyholdingshareholderorassociatedpartiesasdescribedbyarticleIandIIoftheNotification,neitherpaidonbehalfoftheholdingshareholderorotherassociatedpartiestheperiodicexpensessuchaswages,welfares,insurances,orcommercial,norothercostsorexpenses.
2.
Asoftheendofreportterm,thebalanceofguaranteesprovidedtoChongqingJiansheAutomobileA/CCompressorCo.
,Ltd.
,ChongqingNorthJiansheImport&ExportCo.
,Ltd.
wasRMB129.
43million,accountfor29.
45%ofnetassetprovidedbythelatestauditingreport.
Bothoftheabovecompaniesarethefully-ownedsubsidiariesoftheCompany.
TheCompanyisholding100%oftheirsharesdirectlyorindirectly.
Theyareincludedintheconsolidationrangeofthefinancialstatements,theCompanyhascompletecontroloverthesetwocompanies.
Bothofthetwosubsidiarieswereingoodcapitalandbusinesssituation.
ProvidingofguaranteestothemwillnotharmtheinterestsoftheCompanyortheshareholders.
Amountofexternalguaranteeprovidedin2008hasbeenapprovedbythe1stprovisionalshareholders'meetingof2008.
Noguaranteeprovidedtothecontrollingshareholder,otherrelatedpartiesinwhichtheCompanyisholdinglowerthan50%ofshares,oranynon-legal-personpartiesorindividuals.
NoneofthecontrollingshareholderorotherrelatedpartieshasforcedtheCompanytoprovideguaranteestootherparties.
IX.
EngagingordismissingofCPAsOnApril29,2008,asdecidedbytheShareholders'AnnualMeeting2007,DaxinCertifiedPublicAccountantswasengagedastheauditoroftheCompanyforyear2008.
TheservicewillbeforoneyearandtheauditingfeewasRMB650thousand.
2008willbethe2ndyearDaxinCertifiedPublicAccountantshasbeenprovidingservicestotheCompany.
X.
Inthereportterm,noneofthedirectors,supervisors,executives,shareholders,substantialdominators,buyeroftheCompanywasinvestigatedbyrelativedepartments,executedbylegal&disciplinedepartments,deliveredtolegaldepartments,appearedforcrime,investigatedorpunishedbyChinaSecuritiesRegulatoryCommission,restrictedtosecuritymarket,criticizedpublicly,regardedasimproperperson,punishedbyotherexecutivedepartments,orpubliclycondemnedbytheStockExchange.
XI.
ParticularsaboutreceptionofvisitorsandinspectorsInthereportterm,onbasisofopen,fairness,andjustice,theCompanyreceivedtheinvestigation,communication,andvisitingrequestsfromtheinvestorsfullypursuanttotheprovisionsof"GuidetoFairInformationDisclosureofListedCompanies"providedbyShenzhenStockExchange.
Noclassifiedimportantinformationwasdisclosedunder-table,aheadofschedule,ortoselectiveobjects.
Thefairnessofinformationdisclosurewasthereforeguaranteed.
ReceptionRecordsofInvestigations,Communications,andVisitingDateLocationMeansVisitorsContentsandinformationreferred2008-05-15TelephonecommunicationXinhuaFinanceQ:WhetherincreasingofcostsbroughtpressuretotheCompany'sbusinessoperationWhethertheCompanywillpushupthesalespriceWhetheritwillinfluencethedemandontheCompany'sproductsA:IncreasingofpricesofrawmaterialsandenergysurebroughtupthecostoftheCompany,furthermore,implementingofEuroIIIstandardalsobroughtgreatpressuretotheCompany'sproducts.
IncreasingofcostswillinfluencetheCompany'spricepolicy,increasingofsalespricewillsurelycauselostofcertaincustomers.
2008-05-21HenanTelephonecommunicationMr.
ZhengQ:WhethertheCompanyisimpactedbytheearthquakeA:ThegreatearthquakeonMay12didn'tmakemajorlossontheCompany'spersonnelandassets,theCompanywasinnormaloperation.
2008-12-30ShenzhenTelephonecommunicationMr.
TangQ:What'stheprogressoffactorymovingWillitinfluencetheCompany'sproductionA:Theunitedfactoryworkshopshavebeencompletedinconstructionandequipmentinstallation.
A/CCompressorCo.
andChongqingJianya–thecontrolledsubsidiariesoftheCompanyhavebeenmovedtothenewlocationinJiulongIndustrialZone,andputintoproduction.
Throughthismovingoffactory,theCompanyreorganizedtheproductiontechnique,organizationstructure,andlogisticsmanagementinadvance.
Trainingofemployees,powersupplyinthenewarea,employees'dinninghall,publictransportation,andsupportingserviceswereinposition.
Theseensuredtheproductionandmovingprocessatthesametime.
ChapterXI.
FinancialReportI.
FinancialStatements(Attached)II.
Auditors'Report(Attached)III.
NotestoFinancialStatements(Attached)ChapterXII.
DocumentsforReferenceIncludingthefollowingdocuments:1.
AnnualReportcarryingpersonalsignatureandsealoftheChairmanoftheBoard;2.
FinancialStatementswithsignaturesandsealsofthelegalrepresentative,accountingsuperior,andpersoninchargeofaccountingdepartment;3.
OriginalcopyoftheAuditors'ReportwiththesealoftheCPAandsignedbythecertifiedaccountants.
4.
AlloftheoriginalsoftheCompany'sdocumentsandpublicnoticespublicizedbythepressesdesignatedbyChinaSecuritiesRegulatoryCommissioninthereportperiod;5.
SpecialstatementoftheCPAaboutthesituationoffundoccupationbythecontrollingshareholderandotherrelatedpartiesofChongqingJiansheMotorcycleCo.
,Ltd.
intheyearof2008.
(大信核字(2009)第2-0153号)TheabovedocumentsareavailableinthesecretaryofficeoftheBoardofDirectorsofChongqingJiansheMotorcycleCo,Ltd.
ThisreportispreparedbothinEnglishandChinese.
Whenthereisanyconflictinunderstanding,theChineseversionshallprevail.
Mr.
YuGuohua,ChairmanofBoardChongqingJiansheMotorcycleCo.
,Ltd.
April23,2009Auditor'sReportDaxin(2009)AuditNo.
2-0494TotheshareholdersofListedCompanyLimited:WehaveauditedtheaccompanyingfinancialstatementsofChongqingJiansheMotorcycleCompanyLimited("theCompany"),whichcomprisetheconsolidatedandthecompanybalancesheetsasat31December2008,andtheconsolidatedandthecompanyincomestatements,theconsolidatedandthecompanystatementsofchangesinequityandtheconsolidatedandthecompanycashflowstatementsfortheyearthenendedandnotestothefinancialstatements.
Management'sResponsibilityfortheFinancialStatementsThemanagementisresponsibleforpreparingfinancialstatementsinaccordancewithAccountingStandardsforBusinessEnterprises.
Thisresponsibilityincludes(1)designing,implementingandmaintainingtheinternalcontrolrelevanttothepreparationofthefinancialstatementsthatarefreefrommaterialmisstatementwhetherduetofraudorerror;(2)selectingandapplyingappropriateaccountingpolicies;and(3)makingaccountingestimatesthatarereasonableinthecircumstances.
Auditor'sResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.
WeconductedourauditinaccordancewiththeChineseAuditingStandardsissuedbytheChineseInstituteofCertifiedPublicAccountants.
Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainareasonableassuranceastowhetherthefinancialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.
Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
Inmakingthoseriskassessments,weconsidertheinternalcontrolrelevanttotheentity'spreparationoffinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,[butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity'sinternalcontrol.
(thetermsshallbeusedincircumstancesotherthanwhenweareengagedtoexpressanopinionontheeffectivenessoftheinternalcontrolbasedonourauditofthefinancialstatements)]Anauditalsoincludesevaluatingtheappropriatenessoftheaccountingpolicesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
OpinionInouropinion,thefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithAccountingStandardsforBusinessEnterprises,andpresentfairly,inallmaterialaspects,thefinancialpositionoftheGroupandtheCompanyasof31December2008andtheresultsoftheoperationsandthecashflowsfortheyearthenended.
DaxinCertifiedPublicAccountantsCo.
LtdCertifiedPublicAccountants:Wuhan·ChinaCertifiedPublicAccountants:23April,20091ConsolidatedBalanceSheetPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
December31,2008InRMBItemsNoteBalanceattheendofyearBalanceatthebeginningofyearCurrentasset:MonetarycapitalVIII.
1655,689,499.
52955,149,773.
98SettlementprovisionOutgoingcallloanTransactionalfinancialassetsVIII.
21,352,400.
00NotesreceivableVIII.
385,162,740.
7059,579,710.
29AccountreceivableVIII.
4133,289,191.
60185,141,874.
23PrepaymentVIII.
5153,406,071.
47110,470,574.
44InsurancereceivableReinsurancereceivableProvisionsofReinsurancecontractsreceivableInterestreceivableDividendreceivableOtheraccountreceivableVIII.
4187,024,743.
8320,073,920.
49RepurchasingoffinancialassetsInventoriesVIII.
6196,891,648.
70301,071,295.
18Non-currentassetduein1yearOthercurrentassetTotalofcurrentasset1,411,463,895.
821,632,839,548.
61Non-currentassetsLoansandpaymentonother'sbehalfdisbursedDisposablefinancialassetVIII.
71,352,400.
00ExpiredinvestmentinpossessLong-termreceivableLong-termshareequityinvestmentVIII.
8585,145,993.
61523,756,069.
06InvestmentrealestateFixedassetsVIII.
9556,672,006.
13331,818,268.
55ConstructioninprocessVIII.
1023,933,192.
729,546,059.
40EngineeringgoodsFixedassetdisposalProductionphysicalassetsGas&petrolIntangibleassetsVIII.
1194,070,298.
023,395,577.
24R&DexpenseVIII.
1232,859,696.
7818,499,973.
11GoodwillLong-termamortizableexpensesVIII.
139,860,617.
489,030,029.
38DifferedincometaxassetVIII.
146,153,962.
292,075,008.
08Othernon-currentassetVIII.
152,448,000.
002,856,000.
00Totalofnon-currentassets1,312,496,167.
03900,976,984.
82Totalofassets2,723,960,062.
852,533,816,533.
432ConsolidatedBalanceSheet(Cont.
)Preparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
December31,2008InRMBItemsNoteBalanceattheendofyearBalanceatthebeginningofyearCurrentliabilitiesShort-termloansVIII.
17590,831,360.
15552,940,281.
96LoanfromCentralBankDepositreceivedandholdforothersCallloanreceivedTradeofffinancialliabilitiesNotespayableVIII.
18928,630,000.
00919,950,000.
00AccountpayableVIII.
19488,399,907.
16484,364,800.
28PrepaymentreceivedVIII.
1971,809,539.
5361,414,071.
33SellingofrepurchasedfinancialassetsFeesandcommissionsreceivableEmployees'wagepayableVIII.
202,674,838.
653,189,199.
26TaxpayableVIII.
21123,266,751.
67118,706,018.
24InterestpayableDividendpayableOtheraccountpayableVIII.
1929,516,676.
2740,655,822.
53ReinsurancefeepayableInsurancecontractprovisionEntrustedtradingofsecuritiesEntrustedsellingofsecuritiesNon-currentliabilityduein1yearVIII.
2260,000,000.
00OthercurrentliabilityTotalofcurrentliability2,235,129,073.
432,241,220,193.
60Non-currentliabilitiesLong-termborrowingsBondpayableLong-termpayableSpecialpayableVIII.
2345,982,500.
004,375,000.
00ExpectedliabilitiesDifferedincometaxliabilityVIII.
142,774,995.
97Othernon-recurringliabilitiesTotalofnon-currentliabilities45,982,500.
007,149,995.
97Totalofliability2,281,111,573.
432,248,370,189.
57Shareholders'equitySharecapitalVIII.
24477,500,000.
00477,500,000.
00CapitalreservesVIII.
25590,180,517.
59590,180,517.
59Less:SharesinstockSurplusreservesVIII.
26125,686,000.
00125,686,000.
00RetainedprofitVIII.
27-753,944,567.
91-911,267,241.
24DifferentofforeigncurrencytranslationTotalofowner'sequitybelongtotheparentcompany439,421,949.
68282,099,276.
35Minorshareholders'equity3,426,539.
743,347,067.
51Totalofshareholders'equity442,848,489.
42285,446,343.
86Totalofowners'equityandliabilities2,723,960,062.
852,533,816,533.
433ConsolidatedIncomeStatementPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBItemsNoteAmountofcurrentyearAmountofLastYearI.
Totalrevenue2,590,417,898.
902,638,758,238.
61Incl.
BusinessincomeVIII.
282,590,417,898.
902,638,758,238.
61InterestincomeInsurancefeeearnedFeeandcommissionreceivedII.
Totalbusinesscost2,849,686,918.
092,685,683,686.
70Incl.
BusinesscostVIII.
282,439,933,926.
282,345,678,367.
08InterestexpenseFeeandcommissionpaidInsurancedischargepaymentNetclaimamountpaidNetinsurancepolicyreservesprovidedInsurancepolicydividendpaidReinsuranceexpensesBusinesstaxandsurchargeVIII.
2935,013,737.
6235,193,934.
59Salesexpense193,729,887.
45185,382,531.
96Administrativeexpense94,424,787.
2670,791,808.
04FinancialexpensesVIII.
3057,043,871.
7146,152,358.
24AssetimpairmentlossVIII.
3129,540,707.
772,484,686.
79Plus:Gainsfromfluctuationoffairvalue("-"forloss)Investmentgains("-"forloss)VIII.
3257,964,280.
1657,219,695.
92Incl.
Investmentgainsfromaffiliates58,971,089.
8258,226,502.
58Gainsfromcurrencyexchange("-"forloss)III.
Operationprofit("-"forloss)-201,304,739.
0310,294,247.
83Plus:NonbusinessincomeVIII.
33354,648,451.
8310,115,181.
34Less:Non-businessexpensesVIII.
342,726,796.
965,643,523.
60Incl.
Netlossfromnon-currentassetdisposal1,960,036.
171,446,804.
92IV.
Totalprofit("-"fortotalloss)150,616,915.
8414,765,905.
57Less:IncometaxexpensesVIII.
35-6,785,229.
723,185,987.
79V.
Netprofit("-"fornetloss)157,402,145.
5611,579,917.
78Netprofitattributabletotheownersofparentcompany157,322,673.
3312,058,202.
61Minorshareholders'equity79,472.
23-478,284.
83VI.
Earningspershare:(I)Basicearningspershare(yuan/share)0.
330.
03(II)Dilutedearningspershare(yuan/share)4ConsolidatedCashFlowStatementPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBItemsNoteAmountofcurrentyearAmountofLastYearI.
NetcashflowfrombusinessoperationCashreceivedfromsalesofproductsandprovidingofservices3,083,242,473.
183,135,779,546.
22NetincreaseofcustomerdepositsandcapitalkeptforbrothercompanyNetincreaseofloansfromcentralbankNetincreaseofinter-bankloansfromotherfinancialbodiesCashreceivedagainstoriginalinsurancecontractNetcashreceivedfromreinsurancebusinessNetincreaseofclientdepositandinvestmentNetincreaseoftradefinancialassetdisposalCashreceivedasinterest,processingfee,andcommissionNetincreaseofinter-bankfundreceivedNetincreaseofrepurchasingbusinessTaxreturned23,182,326.
0722,941,095.
81OthercashreceivedfrombusinessoperationVIII.
3623,136,808.
2314,980,332.
91Sub-totalofcashinflowfrombusinessactivities3,129,561,607.
483,173,700,974.
94Cashpaidforpurchasingofmerchandiseandservices2,830,200,377.
182,811,157,252.
90NetincreaseofclienttradeandadvanceNetincreaseofsavingsincentralbankandbrothercompanyCashpaidfororiginalcontractclaimCashpaidforinterest,processingfeeandcommissionCashpaidforpolicydividendCashpaidtostaffsorpaidforstaffs143,836,137.
54132,318,763.
29Taxespaid51,957,560.
5441,664,259.
32OthercashpaidforbusinessactivitiesVIII.
3698,589,120.
1784,875,348.
03Sub-totalofcashoutflowfrombusinessactivities3,124,583,195.
433,070,015,623.
54Cashflowgeneratedbybusinessoperation,net4,978,412.
05103,685,351.
40II.
CashflowgeneratedbyinvestingCashreceivedfrominvestmentretrievingCashreceivedasinvestmentgainsNetcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets7,025,099.
973,322,720.
95Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits3.
00Otherinvestment-relatedcashreceivedVIII.
36343,589,640.
92592,860.
00Sub-totalofcashinflowduetoinvestmentactivities350,614,740.
893,915,583.
95Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets460,771,097.
3479,619,950.
52CashpaidasinvestmentNetincreaseofloanagainstpledgeNetcashreceivedfromsubsidiariesandotheroperationalunitsOthercashpaidforinvestmentactivitiesSub-totalofcashoutflowduetoinvestmentactivities460,771,097.
3479,619,950.
52Netcashflowgeneratedbyinvestment-110,156,356.
45-75,704,366.
57III.
CashflowgeneratedbyfinancingCashreceivedasinvestmentIncl.
CashreceivedasinvestmentfromminorshareholdersCashreceivedasloans888,531,078.
19803,087,503.
96CashreceivedfrombondplacingOtherfinancing-relatedcashreceivedVIII.
361,920,486,264.
762,320,422,190.
71Subtotalofcashinflowfromfinancingactivities2,809,017,342.
953,123,509,694.
67Cashtorepaydebts910,640,000.
00912,732,742.
00Cashpaidasdividend,profit,orinterests95,396,235.
8968,095,435.
48Incl.
DividendandprofitpaidbysubsidiariestominorshareholdersOthercashpaidforfinancingactivitiesVIII.
361,823,174,910.
802,271,443,111.
46Subtotalofcashoutflowduetofinancingactivities2,829,211,146.
693,252,271,288.
94Netcashflowgeneratedbyfinancing-20,193,803.
74-128,761,594.
27IV.
Influenceofexchangeratealternationoncashandcashequivalents-2,651,610.
47-4,305,369.
635V.
Netincreaseofcashandcashequivalents-128,023,358.
61-105,085,979.
07Plus:Balanceofcashandcashequivalentsatthebeginningofterm227,280,817.
63332,366,796.
70VI.
Balanceofcashandcashequivalentsattheendofterm99,257,459.
02227,280,817.
636ConsolidatedStatementofChangeinOwners'EquityPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBAmountofcurrentyearOwners'EquityAttributabletotheParentCompanyItemsCapitalshare(Capitalpaidin)CapitalreservesLess:SharesinstockSurplusreservesRetainedprofitOthersMinorshareholders'equityTotalofowners'equityI.
Balanceattheendoflastyear477,500,000.
00590,180,517.
59125,686,000.
00-911,267,241.
243,347,067.
51285,446,343.
86Plus:ChangeofaccountingpolicyCorrectingofpreviouserrorsII.
Balanceatthebeginningofcurrentyear477,500,000.
00590,180,517.
59125,686,000.
00-911,267,241.
243,347,067.
51285,446,343.
86III.
Changedinthecurrentyear("-"fordecrease)157,322,673.
3379,472.
23157,402,145.
56(I)Netprofit157,322,673.
3379,472.
23157,402,145.
56(II)Gains/lossesaccountedintoowners'equitydirectly1.
Changeinfairvalueofsellablefinancialassets,net2.
Influenceofchangeinotherowners'equityofinvestedenterprisesonequitybasis3.
Influenceofincometaxrelatedtoowners'equityitems4.
OthersTotalof(I)and(II)157,322,673.
3379,472.
23157,402,145.
56(III)Investmentordecreasingofcapitalbyowners1.
Capitalinputtedbyowners2.
Amountofsharespaidandaccountedasowners'equity3.
Others(IV)Profitallotment1.
Providingofsurplusreserves2.
Commonriskprovision3.
Allotmenttotheowners(orshareholders)4.
Others(V)Internaltransferringofowners'equity1.
Capitalizingofcapitalreserves(ortocapitalshares)2.
Capitalizingofsurplusreserves(ortocapitalshares)3.
Makinguplossesbysurplusreserves4.
OthersIV.
Balanceatendofthisyear477,500,000.
00590,180,517.
59125,686,000.
00-753,944,567.
913,426,539.
74442,848,489.
427ConsolidatedStatementofChangeinOwners'EquityPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBAmountofthesameperiodoflastyearOwners'EquityAttributabletotheParentCompanyItemsSharecapitalCapitalreservesLess:SharesinstockSurplusreservesRetainedprofitOthersMinorshareholders'equityTotalofowners'equityI.
Balanceattheendoflastyear477,500,000.
00589,980,517.
59125,686,000.
00-921,025,384.
963,825,352.
34275,966,484.
97Plus:Changeofaccountingpolicy-2,300,058.
89-2,300,058.
89CorrectingofpreviouserrorsII.
Balanceatthebeginningofcurrentyear477,500,000.
00589,980,517.
59125,686,000.
00-923,325,443.
853,825,352.
34273,666,426.
08III.
Changedinthecurrentyear("-"fordecrease)200,000.
0012,058,202.
61-478,284.
8311,779,917.
78(I)Netprofit12,058,202.
61-478,284.
8311,579,917.
78(II)Gains/lossesaccountedintoowners'equitydirectly200,000.
00200,000.
001.
Changeinfairvalueofsellablefinancialassets,net2.
Influenceofchangeinotherowners'equityofinvestedenterprisesonequitybasis3.
Influenceofincometaxrelatedtoowners'equityitems4.
Others200,000.
00200,000.
00Totalof(I)and(II)200,000.
0012,058,202.
61-478,284.
8311,779,917.
78(III)Investmentordecreasingofcapitalbyowners1.
Capitalinputtedbyowners2.
Amountofsharespaidandaccountedasowners'equity3.
Others(IV)Profitallotment1.
Providingofsurplusreserves2.
Commonriskprovision3.
Allotmenttotheowners(orshareholders)4.
Others(V)Internaltransferringofowners'equity1.
Capitalizingofcapitalreserves(ortocapitalshares)2.
Capitalizingofsurplusreserves(ortocapitalshares)3.
Makinguplossesbysurplusreserves4.
OthersIV.
Balanceatendofthisyear477,500,000.
00590,180,517.
59125,686,000.
00-911,267,241.
243,347,067.
51285,446,343.
868BalanceSheetPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
December31,2008InRMBItemsNoteBalanceattheendofyearBalanceatthebeginningofyearCurrentasset:Monetarycapital290,589,929.
93211,195,244.
13TransactionalfinancialassetsNotesreceivable1,937,070.
0029,050,000.
00AccountreceivableIX.
111,403,417.
8827,866,336.
06Prepayment120,207,407.
2020,945,029.
06InterestreceivableDividendreceivableOtheraccountreceivableIX.
1320,808,578.
26182,361,710.
41Inventories57,876,449.
31183,604,951.
43Non-currentassetduein1yearOthercurrentassetTotalofcurrentasset802,822,852.
58655,023,271.
09Non-currentassetsDisposablefinancialassetExpiredinvestmentinpossessLong-termreceivableLong-termshareequityinvestmentIX.
2734,870,722.
07673,888,069.
25InvestmentrealestateFixedassets350,762,991.
73240,001,016.
88Constructioninprocess23,917,603.
724,755,065.
43EngineeringgoodsFixedassetdisposalProductionphysicalassetsGas&petrolIntangibleassets69,369,460.
33R&Dexpense32,859,696.
7818,499,973.
11GoodwillLong-termamortizableexpenses4,580,578.
923,128,809.
86Differedincometaxasset6,153,962.
292,075,008.
08Othernon-currentassetTotalofnon-currentassets1,222,515,015.
84942,347,942.
61Totalofassets2,025,337,868.
421,597,371,213.
709BalanceSheetPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
December31,2008InRMBItemsNoteBalanceattheendofyearBalanceatthebeginningofyearCurrentliabilitiesShort-termloans333,000,000.
00264,410,000.
00TradeofffinancialliabilitiesNotespayable502,000,000.
00209,500,000.
00Accountpayable250,225,686.
02198,070,519.
34Prepaymentreceived1,221,094.
672,149,279.
60Employees'wagepayable2,373,690.
252,443,471.
48Taxpayable127,666,251.
10129,126,713.
02InterestpayableDividendpayableOtheraccountpayable210,757,121.
50352,840,733.
95Non-currentliabilityduein1yearOthercurrentliabilityTotalofcurrentliability1,427,243,843.
541,158,540,717.
39Non-currentliabilitiesLong-termborrowingsBondpayableLong-termpayableSpecialpayable45,982,500.
004,375,000.
00ExpectedliabilitiesDifferedincometaxliability2,774,995.
97Othernon-recurringliabilitiesTotalofnon-currentliabilities45,982,500.
007,149,995.
97Totalofliability1,473,226,343.
541,165,690,713.
36Shareholders'equitySharecapital477,500,000.
00477,500,000.
00Capitalreserves588,240,294.
29588,240,294.
29Less:SharesinstockSurplusreserves125,686,000.
00125,686,000.
00Retainedprofit-639,314,769.
41-759,745,793.
95Minorshareholders'equityTotalofshareholders'equity552,111,524.
88431,680,500.
34Totalofliabilityandowners'equity2,025,337,868.
421,597,371,213.
7010IncomeStatementPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBItemsNoteAmountofcurrentyearAmountofLastYearI.
TurnoverIX.
32,551,082,578.
492,346,746,837.
27Less:OperationcostIX.
32,589,844,423.
642,092,661,967.
48Businesstaxandsurcharge32,875,094.
2933,424,737.
33Salesexpense41,483,234.
6581,563,844.
15Administrativeexpense64,928,921.
0850,426,924.
01Financialexpenses9,880,655.
5715,551,271.
68Assetimpairmentloss28,198,316.
653,160,147.
28Plus:Gainsfromfluctuationoffairvalue("-"forloss)Investmentgains("-"forloss)IX.
457,965,008.
4357,168,388.
05Incl.
Investmentgainsfromaffiliates58,971,818.
0958,175,195.
71II.
Operationalprofit("-"forloss)-158,163,058.
96127,126,333.
39Plus:Nonbusinessincome272,896,230.
646,703,605.
84Less:Non-businessexpenses1,156,097.
323,381,198.
25Incl.
Netlossfromnon-currentassetdisposal1,444,338.
62III.
Totalprofit("-"fortotalloss)113,577,074.
36130,448,740.
98Less:Incometaxexpenses-6,853,950.
183,185,987.
79IV.
Netprofit("-"fornetloss)120,431,024.
54127,262,753.
1911CashFlowStatementPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBItemsNoteAmountofcurrentyearAmountofLastYearI.
NetcashflowfrombusinessoperationCashreceivedfromsalesofproductsandprovidingofservices1,916,054,258.
152,714,311,945.
17Taxreturned239,929.
823,326,963.
95Othercashreceivedfrombusinessoperation14,012,260.
628,792,483.
38Sub-totalofcashinflowfrombusinessactivities1,930,306,448.
592,726,431,392.
50Cashpaidforpurchasingofmerchandiseandservices1,523,345,853.
582,444,510,386.
56Cashpaidtostaffsorpaidforstaffs89,535,921.
58103,517,811.
38Taxespaid40,251,166.
3233,175,992.
75Othercashpaidforbusinessactivities31,775,649.
7531,936,055.
18Sub-totalofcashoutflowfrombusinessactivities1,684,908,591.
232,613,140,245.
87Cashflowgeneratedbybusinessoperation,net245,397,857.
36113,291,146.
63II.
CashflowgeneratedbyinvestingCashreceivedfrominvestmentretrievingCashreceivedasinvestmentgainsNetcashretrievedfromdisposaloffixedassets,intangibleassets,andotherlong-termassets6,849,859.
97-3,325,187.
25Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits3.
00Otherinvestment-relatedcashreceived343,589,640.
92592,860.
00Sub-totalofcashinflowduetoinvestmentactivities350,439,500.
89-2,732,324.
25Cashpaidforconstructionoffixedassets,intangibleassetsandotherlong-termassets362,392,109.
4513,999,404.
84Cashpaidasinvestment225,000.
00NetcashreceivedfromsubsidiariesandotheroperationalunitsOthercashpaidforinvestmentactivities79,249,716.
25Sub-totalofcashoutflowduetoinvestmentactivities441,641,825.
7014,224,404.
84Netcashflowgeneratedbyinvestment-91,202,324.
81-16,956,729.
09III.
CashflowgeneratedbyfinancingCashreceivedasinvestmentCashreceivedasloans596,330,000.
00459,176,000.
00Otherfinancing-relatedcashreceived2,589,764,933.
07878,178,422.
98Subtotalofcashinflowfromfinancingactivities3,186,094,933.
071,337,354,422.
98Cashtorepaydebts527,740,000.
00578,686,000.
00Cashpaidasdividend,profit,orinterests41,017,576.
9344,308,141.
23Othercashpaidforfinancingactivities2,820,655,709.
57956,946,696.
42Subtotalofcashoutflowduetofinancingactivities3,389,413,286.
501,579,940,837.
65Netcashflowgeneratedbyfinancing-203,318,353.
43-242,586,414.
67IV.
Influenceofexchangeratealternationoncashandcashequivalents-1,799,670.
30-2,404,512.
60V.
Netincreaseofcashandcashequivalents-50,922,491.
18-148,656,509.
73Plus:Balanceofcashandcashequivalentsatthebeginningofterm89,772,780.
09238,429,289.
82VI.
Balanceofcashandcashequivalentsattheendofterm38,850,288.
9189,772,780.
0912ChangeinOwners'EquitiesPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBAmountofcurrentyearOwners'equityItemsSharecapitalCapitalreservesSurplusreservesRetainedprofitOthersTotalofowners'equityI.
Balanceattheendoflastyear477,500,000.
00588,240,294.
29125,686,000.
00-759,745,793.
95431,680,500.
34Plus:ChangeofaccountingpolicyCorrectingofpreviouserrorsII.
Balanceatthebeginningofcurrentyear477,500,000.
00588,240,294.
29125,686,000.
00-759,745,793.
95431,680,500.
34III.
Changedinthecurrentyear("-"fordecrease)120,431,024.
54120,431,024.
54(I)Netprofit120,431,024.
54120,431,024.
54(II)Gains/lossesaccountedintoowners'equitydirectly1.
Changeinfairvalueofsellablefinancialassets,net2.
Influenceofchangeinotherowners'equityofinvestedenterprisesonequitybasis3.
Influenceofincometaxrelatedtoowners'equityitems4.
OthersTotalof(I)and(II)120,431,024.
54120,431,024.
54(III)Investmentordecreasingofcapitalbyowners1.
Capitalinputtedbyowners2.
Amountofsharespaidandaccountedasowners'equity3.
Others(IV)Profitallotment1.
Providingofsurplusreserves2.
Commonriskprovision3.
Allotmenttotheowners(orshareholders)4.
Others(V)Internaltransferringofowners'equity1.
Capitalizingofcapitalreserves(ortocapitalshares)2.
Capitalizingofsurplusreserves(ortocapitalshares)3.
Makinguplossesbysurplusreserves4.
OthersIV.
Balanceatendofthisyear477,500,000.
00588,240,294.
29125,686,000.
00-639,314,769.
41552,111,524.
8813ChangeinOwners'EquitiesPreparedby:ChongqingJiansheMotorcycleCo.
,Ltd.
Year2008InRMBAmountofthesameperiodoflastyearOwners'equityItemsSharecapitalCapitalreservesSurplusreservesRetainedprofitOthersTotalofowners'equityI.
Balanceattheendoflastyear477,500,000.
00589,980,517.
59125,686,000.
00-856,595,417.
65336,571,099.
94Plus:Changeofaccountingpolicy-1,940,223.
30-30,413,129.
49-32,353,352.
79CorrectingofpreviouserrorsII.
Balanceatthebeginningofcurrentyear477,500,000.
00588,040,294.
29125,686,000.
00-887,008,547.
14304,217,747.
15III.
Changedinthecurrentyear("-"fordecrease)200,000.
00127,262,753.
19127,462,753.
19(I)Netprofit127,262,753.
19127,262,753.
19(II)Gains/lossesaccountedintoowners'equitydirectly200,000.
00200,000.
001.
Changeinfairvalueofsellablefinancialassets,net2.
Influenceofchangeinotherowners'equityofinvestedenterprisesonequitybasis3.
Influenceofincometaxrelatedtoowners'equityitems4.
Others200,000.
00200,000.
00Totalof(I)and(II)200,000.
00127,262,753.
19127,462,753.
19(III)Investmentordecreasingofcapitalbyowners1.
Capitalinputtedbyowners2.
Amountofsharespaidandaccountedasowners'equity3.
Others(IV)Profitallotment1.
Providingofsurplusreserves2.
Commonriskprovision3.
Allotmenttotheowners(orshareholders)4.
Others(V)Internaltransferringofowners'equity1.
Capitalizingofcapitalreserves(ortocapitalshares)2.
Capitalizingofsurplusreserves(ortocapitalshares)3.
Makinguplossesbysurplusreserves4.
OthersIV.
Balanceatendofthisyear477,500,000.
00588,240,294.
29125,686,000.
00-759,745,793.
95431,680,500.
34ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)14Ⅰ.
CompanyInformationBriefIntroductionChongqingJiansheMotorcycleCo.
,Ltd.
(TheprecursorisShenzhenNorthJiansheMotorcycleCo.
,Ltd.
,hereafterreferredtoas"theCompany")isajointventurebetweenJiansheIndustrial(Company)Co.
,Ltd.
(JiansheCompany)andChinaNorthIndustriesCorporationShenzhensubsidiary.
TheLegalRepresentative'sOperatingLicenseNumberis5000001805583,andtheaddressoftheCompany'sregisteredofficeisNO.
1JiansheRoadHuaxiIndustrialParkBananDistrictChongqingChina.
ScopeofBusiness:Motorcycleandspareparts(includeengine),automobileparts(excludingengines),generalmachinery,toolingmoldmanufacturing,processing,andsalesofhouseholdappliancesandmaterials.
HistoryoftheCompanyTheCompanyhasitsprimarylistingontheShenzhenStockExchange(Bshares)onJuly25,1995,setupbyJiansheIndustrial(Company)Co.
,Ltd.
(JiansheCompany)andChinaNorthIndustrialCorporationShenzhensubsidiary,asastockcompanylimited.
OnDecember30,2002,theCompanyinterimgeneralmeetingofshareholderspassedaresolutionofchangingthecompaniesname"ShenzhenNorthJiansheMotorcycleCo.
,Ltd.
"to"ChongqingJiansheMotorcycleCo.
,Ltd.
".
TheregistrationofbusinessadministrationwascompletedonMarch11,2003.
JiansheGroupandtheChinaSouthernIndustrialCorporation(SouthGroup)signedaonDecember3,2004andaonJanuary22,2005.
Accordingtotheseagreements,JiansheGrouptransferred339,625,000sharesofstate-ownedlegalpersonsharestoSouthCompany.
ThetransferhasbeenapprovedbytheStateCouncilAssetManagementBoardonMarch9,2005andapprovedbytheChinaSecuritiesRegulatoryCommissiontoexemptSouthGroupobligationsofTakeoverOfferonMay2005.
InSeptember2005,undertheapprovaltheForeigncapital[2005]certificatesNo.
0628ofthePeople'sRepublicofChinaDepartmentofCommerce,Companychangedfromjoint-stockcompanytoaforeigninvestmentjoint-stockcompanyandcompletedtheregistrationchangeofbusinessinAugust2007,receivingne-wbusinesslicenseas"CommerceEnterpriseNo.
500000400001350",andincorporationlocationisChongqing.
TheoriginalregisteredcapitalwasRMB477.
5mil-lionyuan.
InApril2007,accordingtotheGuangdongProvinceShenzhenCityIntermediatePeople'sCourt"(2006)secondinstancejudgementNo.
21-4oninsolvencybyIntermediatePeople'sCourtofShenzhencity",17.
875millionsharesofstate-ownedlegalpersonsharesholdingbyChinaNorthIndustriesCorporationShenzhensubsidiaryweretransferredtoYangpuNewYufengInvestmentCo.
,FENGYonghuiandGUZuocheng.
YangpuNewYufengInvestmentCo.
held700millionshares;FENGYonghuiheld200millionshares;GUZuochengheld887.
5millionshares.
OrganizationStructureTheCompanyisseparatedintotwodepartments:FinishedGoodsDepartmentandEngineDepartment,whichconsistofseparatefunctionalofficeandmanufacturingplant.
FoursubsidiarycompaniesweresetupbytheCompany:ChongqingJiansheSaleCo.
,Ltd.
,ChongqingNorthImport-ExportTradingCo.
,Ltd.
,ChongqingJiansheVehicle-usedAir-conditionalCo.
,Ltd.
andShanghaiJiansheMotorcycleCo.
,Ltd.
ThreeJointVenturesweresetupbytheCompany:ChongqingJiansheYamahaMotorcycleCompanyLimited,ZhuzhouJiansheYamahaMotorcycleCompanyLimitedandChongqingPingshantaikaiCarburetorCompanyLimited.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)15ControllingshareholderofCompanyisNorthCompany,thecontrollingshareholderofwhichisState-ownedAssetsManagingSupervisingCommitteeofStateCouncil.
Thecommitteeholds100%sharesofNorthCompany.
ProcessoftheCompany'srelocationprojectInaccordancewiththeoverallplanofChongqingGovernmentCityConstruction,theCompanywasbroughtintothe"Out-city,In-suburban"project.
TheCompanyhastorelocatetothenewplace.
InaccordancewiththeapprovalonrequisitioninglandforrelocationprojectissuedbyChongqingPeople'sGovernment,ChongqingJiansheMechanicalCompanyLimitedrequisitioned717unitsofareaatChongqingJiulongIndustrialParkandChongqingBananDistrictHuaxiIndustrialParkaltogether,thereintoChongqingJiulongIndustrialPark252unitsofarea,whichisusedonVehicle-usedAir-conditionerCompressionerProject,andChongqingBananDistrictHuaxiIndustrialPark465unitsofarea,whichisusedontheCompany'sofficebuildingsandmotorcycle-relatedprojects.
Upto31Dec,2008,relocationprojectsoftheCompanyandtheCompany'ssubsidiary,ChongqingJiansheVehicle-usedAir-conditionerCompanyLimitedandtheCompany'sjointventure,ChonqingJiansheYamahaMotorcycleCompanyLimited,hadbasicallybeenfinished.
Ⅱ.
StatementofcompliancewiththeAccountingStandardsforBusinessEnterprisesTheconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeBasisofpreparationofthefinancialstatementssetoutinnoteⅢ,anditmeetstherequirementsofAccountingStandardforBusinessEnterprises,representsthefinancialpositionofenterprises,performanceofoperationandcashflow,andotherrelevantinformationtruly,fairlyandcompletely.
Ⅲ.
BasisofpreparationofthefinancialstatementsTheCompany'sfinancialstatementsarepreparedonagoingconcernbasisandbaseonaccrualmethod,proceedingrecognitionandmeasurementwhentransactionoritemactuallyhappeninaccordancewithandotheraccountingstandards.
Ⅳ.
SignificantAccountingPoliciesandAccountingEstimates1.
AccountingyearTheaccountingyearoftheCompanyisfrom1Januaryto31Decemberofeachcalendaryear.
2.
FunctionalcurrencyTheCompany'sfunctionalandreportingcurrencyistheRenminbi("RMB").
Unlessotherwisestated,theunitofthecurrencyisyuan.
3.
AccountingValuationTheCompanymaintainsitsaccountingrecordsonanaccrualbasis.
Exceptforcertainfinancialinstruments,assetsarerecordedatactualcostwhentheyareacquired.
Subsequently,iftheassetsareimpaired,thecorrespondingprovisionsshouldbemadeaccordingly.
TheassetsinvestedduringtherestructuringoftheCompanyshouldberecordedattheappraisalpricedeterminedbytheNationalAssetsManagementDepartment.
4.
CashequivalentsCashequivalentsrepresentshort-term,highlyliquidinvestmentswhicharereadilyconvertibleintoknownamountsofcash,andwhicharesubjecttoaninsignificantriskofchangesinvalue.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)165.
ForeignCurrencyTranslationTheamountofforeigncurrencytransactionsoccurredinthereportingyearistranslatedintofunctionalcurrency.
Theforeigncurrencytransactionsarerecorded,oninitialrecognitioninthefunctionalcurrency,byapplyingtotheforeigncurrencyamountatthespotexchangerateasatthetransactiondates.
ForeigncurrencymonetaryitemsaretranslatedusingthespotexchangeratequotedbythePeople'sBankofChinaatthebalancesheetdate.
Theexchangegainsorlossesarisingfromoccurrenceoftransactionsandexchangeofcurrencies,exceptforthoserelatingtoforeigncurrencyborrowingsspecificallyforconstructionandacquisitionoffixedassetscapitalized,aredealtwithintheprofitandlossaccounts.
Non-monetaryforeigncurrencyitemsmeasuredathistoricalcostremaintobetranslatedatthespotexchangerateprevailingonthetransactiondate,andtheamountdenominatedinthefunctionalcurrencyshouldnotbechanged.
Nonmonetaryforeigncurrencyitemsmeasuredatfairvalueshouldbetranslatedatthespotexchangerateprevailingonthedatewhenthefairvaluesaredetermined.
Theexchangedifferencethusresultedshouldbechargedtothecurrentincomeorcapitalsurplusaccountofthecurrentperiod.
6.
FinancialinstrumentClassificationFinancialassetsandliabilitiesare,oninitialrecognition,classifiedintothefollowingfourcategories:transactionalfinancialassets,held-to-maturityinvestments,loansandreceivablesandavailable-for-salefinancialassets&liabilitiesandotherfinancialliabilities.
RecognitionoffinancialinstrumentTheCompanyrecognizesafinancialassetorafinancialliabilityonitsbalancesheetwhentheCompanybecomesapartytothecontracturalprovisionoftheinstrument.
MeasurementoffinancialinstrumentThecompanyrecognizesfinancialassetsatfairvalue.
Theexpensesfortransactionsoffinancialassetsandfinancialliabilitiesarerecordedascurrentprofitandloss,theexpensesforothersfinancialinstrumentarerecordedintotheinitialcostofthefinancialinstrument.
Subsequentmeasurementoffinancialassetsisassessedonfairvalueandtransactioncostfordisposaloffinancialassetswillnotbedeductedfromthefairvalue.
Held-to-maturityinvestmentsandaccountsreceivableemployeffectiveinterestratemethodandaremeasuredatamortizedcost.
Thecompanyrecognizestransactionalfinancialliabilitiesatfairvalue.
Thecontingentexpensesfortransactionalfinancialliabilitieswhendisposingarenotdeductedfromthefairvalue.
Otherfinancialliabilitiesaremeasuredateffectiveinterestratemethodandaremeasuredatamortizedcost.
Gainandlossoftransactionalfinancialassetsorliabilitiesresultsfromthefluctuationoffairvaluearedirectlyrecordedintocurrentprofitandloss.
Gainandlossfromthefluctuationofthefairvalueofavailable-for-salefinancialassetsaredirectlyrecordedintoowner'sequity(exceptimpairmentlossofassetsandgainandlossofcurrencyexchangefromforeignnon-currencyassets)andaretransferredintocurrentgainandlosswhenthefinancialassetsareterminated.
Follow-upmeasurementforfinancialliabilitiesassetsbasesonfairvalue,anddon'tdeducttransactioncostfordisposaloffinancialliabilities.
Otherfinancialliabilitiesuseeffectiveinterestratemethod,andassessatamortizedcost.
Gainandlossfromtermination,impairmentandamortizationoffinancialassetsandliabilitiesthatmeasuredatamortizedcostaredirectlyrecordedintoprofitandlossofcurrentperiod.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)17RecognitionoffinancialassetstransferIftheCompanytransferssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,theCompanyderecognizesthefinancialasset;andiftheCompanyretainssubstantiallyalltherisksandrewardsofthefinancialasset,theCompanydoesnotderecognizethefinancialasset.
MeasurementoffinancialassetstransferWhenthetransferoffinancialassetsisrecognized,thedifferencebetweenthefollowingitemsisrecordedintocurrentprofitandloss:a.
bookvalueoffinancialassetstransferred;b.
thecurrencyornon-currencyassetsreceivedassellingpricetogetherwiththeaccumulatedamountofchangeoffairvalueoffinancialassetsthathadbeendirectlyrecordedintoowner'sequitybefore(ifreferredtothetransferofavailable-for-salefinancialassets).
RecognitionoffairvalueFairvalueisrecognizedatquotationonthelivelymarketiftherewerelivelymarketforthefinancialassetsorfinancialliabilitieswhilevalue-assessmenttechniqueisusedtoconfirmthefairvalueoffinancialassetsiflivelymarketforthefinancialassetsdidnotexist.
ImpairmentoffinancialassetsTheCompanyassessesthecarryingamountofafinancialasset,atthebalancesheetdate.
Ifthereisobjectiveevidencethatthefinancialassetisimpaired,theCompanymakesprovisionfortheimpairmentloss.
Objectiveevidencethatafinancialassetisimpairedisevidencearisingfromoneormoreeventsthatoccurredaftertheinitialrecognitionoftheassetandthateventhasanimpactontheestimatedfuturecashflowsofthefinancialassetwhichcanbereliablyestimated.
a.
FinancialassetscarriedatamortizedcostIfobjectiveevidenceshowsthatthefinancialassetscarriedatamortizedcostareimpaired,thecarryingamountofthefinancialassetshallbereducedtothepresentvalueoftheestimatedfuturecashflow(excludingfuturecreditlossesthathavenotbeenincurred).
Theamountofreductionisrecognizedasanimpairmentlossintheincomestatement.
Presentvalueofestimatedfuturecashflowisdiscountedatthefinancialasset'soriginaleffectiveinterestrateandincludesthevalueofanyrelatedcollateral.
Ifafinancialassetisindividuallysignificant,theGroupassessestheassetindividuallyforimpairment,andrecognizestheamountofimpairmentintheincomestatementifthereisobjectiveevidenceofimpairment.
Forafinancialassetthatisnotindividuallysignificant,theGroupcanincludetheassetinagroupoffinancialassetswithsimilarcreditriskcharacteristicsandcollectivelyassessthemforimpairment[orassesstheassetindividuallyforimpairment].
Forfinancialassetsthatarenotimpaireduponindividualtests(includingfinancialassetsthatareindividuallysignificantorinsignificant),impairmenttestsshouldbeconductedonthemagainbyincludingtheminthegroupoffinancialassets.
Assetsforwhichanimpairmentlossisindividuallyrecognizedwillnotbeincludedinacollectiveassessmentofimpairment.
If,subsequenttotherecognitionofanimpairmentlossonafinancialassetcarriedatamortizedcost,thereisobjectiveevidenceofarecoveryinvalueofthefinancialassetwhichcanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognized,thepreviouslyrecognizedimpairmentlossisreversedandrecognizedintheincomestatement.
However,thereversalshallnotresultinacarryingamountofthefinancialChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)18assetthatexceedswhattheamortizedcostwouldhavebeenhadtheimpairmentnotbeenrecognizedatthedatetheimpairmentisreversed.
b.
FinancialassetscarriedatcostIfobjectiveevidenceshowsthatthefinancialassetscarriedatcostareimpaired,thedifferencebetweenthepresentvaluediscountedattheprevailingrateofreturnofsimilarfinancialassetsandthebookvalueofthefinancialassetareprovidedasaprovision.
Theimpairmentlossrecognizedcannotbereversed.
Forlong-termequityinvestments,whichareaccountedforaccordingtothecostmethodsetoutbyAccountingStandardsforBusinessEnterprisesNo.
2–Long-termEquityInvestmentsandhasnoquotedmarketpriceinactivemarkets,andwhosefairvaluescannotbereliablymeasured,theirimpairmentshouldalsobetreatedinaccordancewiththeaboveprinciple.
c.
Available-for-salefinancialassetsWhenthereisobjectiveevidencethattheassetisimpaired,thecumulativelossfromdeclinesinfairvaluethathadbeenrecognizeddirectlyincapitalreserveareremovedfromequityandrecognizedintheincomestatement.
Theamountofthecumulativelossthatisremovedfromcapitalreservesandrecognizedintheincomestatement(netofanyprincipalrepaymentandamortization)andcurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognizedintheincomestatement.
If,inasubsequentperiod,thefairvalueofadebtinstrumentclassifiedasavailableforsaleincreasesandtheincreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognizedintheincomestatement,thepreviouslyrecognizedimpairmentlossshallbereversedwiththeamountofthereversalrecognizedintheincomestatement.
Impairmentlossesrecognizedintheincomestatementforadebtinstrumentinvestmentshallnotbereversedthroughprofitorloss.
7.
AccountreceivableandbaddebtThereisobjectiveevidencethattheimpairmentofsingleaccountreceivablewhichamountissignificantoccurred(includeaccountreceivableandotherreceivable),theestimateofuncollectiblereceivablesisbaseonthedifferencebetweennetrealizablevalueandbookvalue.
Theaccountreceivablethattheamountisn'tsignificantanddonotimpaired,theestimateofuncollectiblereceivableisbaseontheageofthereceivable.
Ratios(%)Withinoneyear51-2years102-3years20Over3years50Ifarecoveryofreceivablesexistsignificantdifferences,andcanbeusedonthereceivablesindividualRecognitionActProvisionforbaddebt.
Themethodofestimatethebaddebtisallowancemethod.
Duethedebthasestimatedcan'trecoverable,stoprecognizing.
8.
InventoriesInventoriescompriserawmaterials,goodsinprocess,finishedgoods,etc.
Inventoriesestimatewithactualcost,andcarrydownthecostwithweightedaverage(inventory)method,First-in-First-out(FIFO)methodorindividualvaluationmethod.
Thecostincludespurchasecost,productcostandothercost.
ThedeliveredinventoriesaremeasuredunderweightaveragemethodorFIFO.
FinalinventoryisestimatedChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)19underlowerofcostornetrealizablevaluemethod.
Consumablesuppliesareamortizedatfullamount.
Inventorysystem:Perpetualinventory.
Recognitionmethodofnetrealizablevalue:theinventoryforsalesuchasfinishedgoods,goodsandmaterialsforsalerecognizedthenetrealizablevaluewiththeamountofestimatedpricelessexpensesandtaxforsale;theinventorythatneedprocessingrecognizedthenetrealizablevaluewiththeamountofestimatedpricelesstheprocessingcost,expensesandtaxforsale.
Provisionforthedeclineinvalueofinventoriesaccordancewiththeamountthatnetrealizablevaluelowerthanbookvalue,thedeclineinvaluerecordedascurrentprofitandloss,iftheinventorieshaveresumedvalue,write-offtheprovisionfordeclineinvalueofinventories,theamountofwrite-offrecordedascurrentprofitandloss.
9.
Consolidationa.
ConsolidationunderthesamecontrolConsolidationunderjointcontrolisaccountedunderequitymethod.
Theassets,liabilities,isrecordedatinitiallycost,exceptadjustedforthedifferenceofaccountpolicies,don'tbringgoodwill.
Thedifferencebetweenbookvalueofconsolidationandthenetbookvaluegetfromconsolidationisrecordedascapitalreserve;thepartofovercapitalreserveisadjustingasretainedearnings.
Thenetprofitofconsolidationrecordedinconsolidatedincomestatement.
b.
Consolidationundernon-jointcontrolIfconsolidationcostismorethanthenetassetsgetfromconsolidation,thedifferencebetweenconsolidationcostandthefairvalueofnetassetsgetfromconsolidationshouldberecognizedasgoodwill,andvaluationwiththeamountofcostlesstheimpairment.
Iftheconsolidationcostislessthanthenetassetsgetfromconsolidation,thedifferencebetweenthetwoshouldberecordedintocurrentprofitandloss.
Operationalresultofcompanybeconsolidatedisrecordedinconsolidatedincomestatementstartatgettingthecontrolinvestmentandendintransferringcontrolinvestment.
10.
Long-termequityinvestmentClassificationLong-termequityinvestmentclassifiedasinvestmentforsubsidiarycompany,investmentforassociatedcompany,investmentforthecompanyhassignificantinfluence,butnotcontrolorjointcontrol,andthelong-termequityinvestmentdoesn'thaveapriceofactivemarket,thefairvaluecan'trecognizereliability.
InitialvaluationLong-termequityinvestmentfromconsolidationrecognizedtheinitialinvestmentcostinaccordancewithprincipleasfollowed:investmentinajointlycontrolledentity,recognizedtheinitialinvestmentcostbythebookvalueofthecompanyshare'sowner'sequitygetfromconsolidation,theexpensesandtaxfortheconsolidationisrecordedascurrentprofitandloss;investmentinnon-jointlycontrolledentity,recognizedtheinitialinvestmentcostbyfairvalueofassets,debtandequitysecuritiespayingforconsolidatedcompanytogetcontrolinvestment,andtheexpensesfortheconsolidationisrecordedasinitialinvestmentcost.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)20Getlong-termequityinvestmentbycash,recognizedtheinitialinvestmentcostinaccordancewiththeactualpaymentofthepurchaseprice.
Directlyrelatedcosts,taxesandothernecessaryexpensesforlong-termequityinvestmentsarealsorecordedintotheinitialinvestmentcost.
Butthecashdividendiscontainedwithinpurchasepriceisrecordedasreceivableitem.
Getlong-termequityinvestmentthroughtheissuanceofequitysecurities,recognizedtheinitialinvestmentcostinaccordancewiththefairvalueofthesecuritiesissued.
Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreementexcepttheunfairvaluestipulatedinthecontractoragreement.
Getlong-termequityinvestmentthroughtheexchangeofnon-monetaryassets,recognizedtheinitialinvestmentcostinaccordancewiththefairvalueofassetandtaxiftheexchangehavecommercialquiddityandfairvalueofexchangecanestimatereliably,thedifferencebetweenfairvalueofassetandbookvalueofassetisrecordedascurrentprofitandloss.
Iftheexchangecannotmeettheconditionsasabove,recognizedtheinitialinvestmentcostinaccordancewiththebookvalueofassetandtheexpensesandtaxforthisexchange.
Getlong-termequityinvestmentthroughdebtreconstructuction,theinitialinvestmentcostrecognizedinaccordancewithfairvalueofshares,thedifferencebetweeninitialinvestmentcostandbookvalueofdebtisrecordedascurrentprofitandloss.
ReorganizationFollow-upvaluationLong-termequityinvestmentforsubsidiarycompanyandotherequityinvestmentsusecostmethod,andadjustingthelong-termequityinvestmentofsubsidiaryinpreparationoftheconsolidatedincomestatementsLong-termequityinvestmentforassociatedcompanyandjointventureuseequitymethod.
Long-termequityinvestmentforsubsidiarycompany,associatedcompanyandjointventurehaveimpaired,estimatedreclaimablevalue,recognizedimpairmentifreclaimablevalueislowerthanbookvalueandrecordedascurrentprofitandloss,andestimatedprovisionforimpairmentoflong-termequityinvestment.
Estimatedprovisionforotherequityinvestmentsbaseonthedifferencebetweennetrealizablevalueandbook,andrecordedascurrentprofitandloss.
Theprovisionforimpairmentofthelong-termequityinvestmentasabovecannotwrite-offinfuture.
RecognitionofinvestmentincomeUsingthecostmethodoflong-termequityinvestmentsshouldbeaccountedinaccordancewiththeinitialinvestmentcost.
Supplementaryorrecovertheinvestmentadjustedthecostoflong-termequityinvestments.
Cashdividendsorprofitsdeclaredtobedistributedbytheinvestment,recognizedasthecurrentinvestmentincome.
Investmentincomerecognitiononlyrefertotheamountofaccumulatednetincomethecompanyshare,thepartoveraboveiswrite-downinitialinvestmentcost.
Usingtheequitymethod,recognizedinvestmentincomeandadjustedbookvalueoflong-terminvestmentbaseoninvestor'sshareofowner'sequityoftheinvestedenterprise;Write-downbookvalueoflong-terminvestmentwithdeclaredtobedistributedbytheinvestmentofcashdividendsorprofits,Otherchangesforinvestmentunitsinowner'sequity,adjustedthebookvalueandrecordedasowner'sequity.
Disposallong-termequity,thedifferencebetweenbookvalueanddisposalvalueisrecordedascurrentprofitandloss.
Usingtheequitymethod,otherchangesforinvestmentunitsinowner'sequityrecordedasowner'sequity,transferintocurrentprofitandlosswithappropriateratio.
11.
InvestmentpropertyChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)21Investmentpropertycompriseleasedlandoccupancyright,landoccupancyrightheldtotransferaftervalueadded,leasedbuildings.
Investmentpropertyrecognizedinitialvaluationwithcost,andrecognizedfollow-upvaluationusecostmethod.
Investmentpropertyisestimatedandamortizedaccumulateddepreciationasfixedassetsandintangibleassets.
Investmentpropertyhaveimpaired,estimatedprovisionforimpairmentinaccordancewithaccountingpolicy15.
12.
FixedassetDefinitionoffixedassetFixedAssetsrefertotangibleassetisownedandusedforoperating,service,rent,ormanagementandtheusageperiodover1year.
Recognitionoffixedasseta.
fixedassetmustbecapableofprovidingbenefit;b.
costmustbecapableofestimatingreliably.
ClassificationFixedassetcomprisehouseandbuilding,genericequipment,transportequipmentandofficeequipment.
DepreciationmethodDepreciationisusingthestraight-linemethod,andanticipateddisposalproceedsis3%EstimatedusefullifeAnnualdepreciationrateHouseandbuilding30~35years2.
77%~3.
23%Genericequipment7~14years6.
93%~13.
86%Transportandofficeequipment5~8years12.
13%~19.
40%ProvisionforimpairmentoffixedassetsAttheendofanaccountingperiod,fixedassethaveimpaired,estimatedreclaimablevalue,recognizedimpairmentifreclaimablevalueislowerthanbookvalueandrecordedascurrentprofitandloss,andestimatedprovisionforimpairmentoffixedasset.
Thefixedassetsshouldprovisionforimpairmentwithfullybookvalueasthefollowingcircumstance:topredict,thefixedassetswillnotbeusedforalongtimeanddon'tuseinthefuturetopredict,anddon'thavetherecoverablevalue;forthereasonofimprovingtechnology,thefixedassetscannotbeused;thefixedassetsproducetoomanydisqualificationproducts;forthereasonofthedamaged,thefixedassetsdon'thaveanyusagevalueandrecoverablevalue;theassetscannotbringanyfurthereconomicbenefitstotheCompanyforotherreasons.
Theprovisionforimpairmentoffixedassetasabovecannotwrite-offinfuture.
13.
Construction-in-ProgressIntheworksisthenecessaryexpendituresofacquiringfixedassetsbeforefixedassetintendedtouse,includingthedirectmaterials,directemployeespay,pendinginstallationofequipment,engineeringandconstructionandinstallationChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)22costs,thecostofprojectmanagementandcommissioningworksnetgainsandlossesandtheborrowingcostsallowingcapitalizationConstruction-in-progressintendedtousingtransferintofixedasset.
Onbalancesheetdate,thereareindicationsthattheprovisionintheworks,accordingtothefinancialstatementsNote4,significantaccountingpoliciesandaccountingestimate,themethodsdescribedinthe15Provisionforprovisionoffixedassets.
Construction-in-progresshaveimpaired,estimatedprovisionforimpairmentinaccordancewithaccountingpolicy15.
14.
IntangibleAssetsOriginalvaluationIntangibleAssetscompriselanduseright,patents,generictechnologiesetc.
IntangibleAssetsaremeasuredatoriginalcosts.
Follow-upvaluationIntangibleassetsareclassifiedinaccordancewithestimatedearningsperiodsettobringeconomicbenefits,suchasthedurationoflifeislimitedorunlimited,unpredictableintangibleassetsfortheeconomicbenefitsoflifeastheuncertaintyofintangibleassets.
Limitedlifeofintangibleassets,theamountshouldbeamortizedinthesystemwithinareasonablelifeamortization,couldnotbereliablydeterminedexpectedmanner,usingthestraight-linemethodamortization.
Attheendofanaccountingperiod,reviewtheusefullifeofthelimitedlifeintangibleassetsandamortizationmethod,adjustedifnecessary.
Uncertaintylifeintangibleassetsthatdonotamortization,buttheannualreviewtheusefullifeoftheintangibleassets,andtestedforimpairment.
Thebalancesheetdate,intangibleassetshaveimpaired,estimatedprovisionforimpairmentinaccordancewithaccountingpolicy15.
EstimatedlifeIntangibleassetswithlimitedlife,estimatedusefullifenormallyconsiderthefollowingfactors:a.
generallyusefullifeoftheproductionproductsbythisassets,theavailabilityofsimilarinformationservicelifeofassetsb.
thesituationonthecurrentstageoftechnical,technologicalandotheraspects,andthefuturedevelopmenttrendestimatesc.
themarketdemandforproductsorprovidelaborbytheassetsd.
noworpotentialcompetitorsexpectedtotakeactione.
expensesforthemaintenanceoftheassetsabilitytobringeconomicbenefitstotheexpectedmaintenance,andthecompanyisexpectedtopaytheexpensesofcapacityf.
relevantlawsandregulationsorsimilarrestrictionsforholdingperiodoftheassets,suchastheuseoftheconcessionperiod,theleaseperiodg.
relevancethatisrelatedtoservicelifeofotherassetsholdingbythecompany.
ExpensesinresearchperiodandexpensesindevelopmentperiodExpensesinresearchprocessforinternalresearchanddevelopmentprojectarerecordedascurrentprofitandloss.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)23Expensesindevelopmentprocessforinternalresearchanddevelopmentprojectarerecordedasintangibleassetifatthesametimemeetthefollowingconditions:a.
technicallyfeasibilityofcompletetheintangibleassetsothatitisabletouseorsellb.
intenttocompletingtheintangibleassettouseorsellc.
Haveeconomicinterestsoftheintangibleassets,includingintangibleassetscanprovethattheuseoftheproductsproducedbytheexistenceofamarketormarkettheirownintangibleassets,intangibleassetsintheinternaluseoftoproveitsusefulnessd.
Havesufficienttechnical,financialsupportandotherresourcestocompletethedevelopmentoftheintangibleassets,andtheabilitytouseorselltheintangibleassete.
thecostcanestimatereliably15.
AssetimpairmentThebalancesheetdate,theassethaveimpaired,estimatedthereclaimablevaluebaseonindividualasset,ifassetisdifficulttoestimatereclaimablevalue,provisionforimpairmentestimatedthereclaimablevaluebaseonCompanyassetsorCompaniesofassetsportfolio.
(exceptinventory,equityinvestmentdon'thavepriceinactivemarketandthefairvaluecannotestimatereliably,investmentpropertyestimatedwithfairvalue,productivebiologicalassets,fixedassetfromconstructioncontracts,deferredtaxassets,theresidualvalueofthelessorisn'tsecuredforfinancialleasesandfinancialasset.
)Reclaimablevalueisbasedonthehigherbetweenthenetvalueoffairvalueofasset,CompanyassetorCompaniesofassetsportfoliolessthedisposalexpenseandnetrealizablevalue.
Individualassetreclaimablevalueislowerthanbookvalue,estimateimpairmentwiththedifferencebetweenthetwo;CompanyassetorCompaniesofassetsportfolioreclaimablevalueislowerthanbookvalue,recognizedimpairmentloss,theamountofimpairmentlossfirstwrite-downgoodwillamortizedinbookvalue,andthenwrit-downbookvalueofotherassetexceptthegoodwillintheCompanies;thebookvaluewrite-downisrecordedasindividualassetimpairmentloss,estimateimpairmentforeachindividualasset.
Theprovisionforimpairmentofassetasabovecannotwrite-offinfuture.
16.
BorrowingCostsBorrowingcostsrefertotheinterestonborrowingsandotherrelatedcosts,includinginterest,amortizationofdiscountandpremium,ancillaryexpenses,differencefromexchangeofforeigncurrencyborrowings.
Borrowingcoststhatcanbedirectlyclassifiedascostonconstructionorproducingofassetsthatmeettheconditionofcapitalizationcanbecapitalizedwhileotherborrowingcostsmusttobereckonedinprofitorlossincurrentyear.
Assetsthatmeettheconditionofcapitalizationrefertofixedassets,investmentrealestatesandinventoriesthatcanbecomeusableorsaleableonlyafterquitealongperiodofconstructionorproducing.
a.
Onlywhenthefollowingthreeconditionsareallfullysatisfied,theborrowingrelatedancillaryexpensesareallowedtobecapitalized:-Expenditurefortheassethasoccurred;-Borrowingcostshaveincurred;-Producingandconstructionthatisnecessarytomakeassetstobeinexpectedstateofusableorsaleablehavebegun.
Borrowingcostsshouldstopcapitalizingwhenassetsthatmeettheconditionofcapitalizationandunderconstructionorproducingbecameusableorsaleablewhilelaterborrowingcostsmustbereckonedinprofitorlossincurrentyear.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)24Ifconstructionorproducingofassetsthatmeettheconditionofcapitalizationwasinterruptedabnormallylongerthanthreemonths,borrowingcostsduringthatinterruptionmustbereckonedinprofitandlossincurrentyear.
b.
Duringthecapitalizingperiod,eachperiod'scapitalizingamountofborrowingcostsiscalculatedasfollows:-Capitalizingamountofinterestfromspecificborrowingequalinterestoccurredduringtheperiodminustemporarydepositinterestorinvestmentincome.
-Capitalizingamountofinterestfromcommonborrowingequalweightedaveragepartofresultofaccumulatedexpensesonassetsminusspecificborrowingbetweenofexpensesonassetsmultiplycapitalizationrateofcommonborrowings.
Capitalizationrateisdependentonweightedaverageofcommonborrowings.
17.
EstimatedliabilitiesTheobligationsrelatetocontingencyandcomplywiththefollowingconditionsisrecognizedasestimatedliabilities:-TheobligationsbelongtotheCompanyandarecurrentobligations;-FulfillingtheobligationislikelytoleadtheeconomicinterestoutflowfromCompany;theamountoftheobligationcanbemeasuredreliably.
-Confirmtheamountoftheestimatedliabilities,suchasliquidationoftheliabilitiesoftheexistenceofarequiredamountoftheexpenditure,accordingtothearea,theaverageminimumamountdeterminedifthereisnotanecessaryexpenditureoftheamount,accordingtothefollowingmethodstodetermine:-Contingencyinvolvingindividualprojects,determinedaccordingtotheamountofmostlikelytooccur.
-Contingencyinvolvingseveralprojects,calculationanddeterminedaccordingtothepotentialforavarietyofprobability.
18.
RevenueProvideditisprobablethattheeconomicbenefitswillflowtothecompanyandtherevenueandcosts,ifapplicable,canbemeasuredreliably,revenueisrecognizedinprofitorlossasfollows:a.
Merchandisesalesrevenueinthefollowingconditionscanbemettoconfirm-TheCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods.
-Itlosttherightsofcontrolandmanagementofthegoods.
-Thepaymenthasmadetothecompany.
-Therelevantexpensesaremeasurable.
b.
Provideservicesrevenuerecognition-Laborinthesamefiscalyearstartedandtheincomecouldrecognizeatthecompletionoflabor.
-Laborstartsandcompletesindifferentfiscalyears:iftheresultsofprovidinglabortransactionsestimatereliable,confirmrelatedlaborincomebythepercentageofcompletionatthebalancesheetdate;iftheresultsofprovidinglabortransactionsestimateunreliable;confirmrelatedlaborincomebyhavingoccurredandisexpectedtocompensatefortheamountofincomerecognitionlaborcostsaccordingtothebalancesheetdate.
c.
Transferringtherightofusetheassetsrevenuerecognition-Thepaymenthasmadetothecompany.
-Therelevantexpensesaremeasurable.
19.
IncomeTaxIncomeTaxcomprisescurrentincometaxanddeferredincometax.
Inadditiontothecorporateincometaxadjustmentofthemergergoodwill,ordirectlychargedtoownersoftherightsandinterestsofthetransactionsormattersincludedintheowner'sequity,incometaxisrecordedasincometaxexpenseareincludedinthecurrentprofitorloss.
Thecompanyformduringthecurrentincometaxliabilitiesorassetsincurrentandprevious,estimatedinaccordanceChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)25withtheprovisionsofthetaxlawcalculatingtheexpectedtopayandreturnamount.
Accordingtotemporarydifferencesbetweenbookvalueofassetsandliabilitiesinthebalancesheetdateandtaxbase,usingdeferredtaxationaccountingforincometax.
Alltaxabletemporarydifferencesarerecognizedasdeferredincometaxliabilities,unlesstaxabletemporarydifferencesforminthefollowingtransactions:Initialrecognitionofgoodwill;Althoughthetransactionisnotaconsolidation,butwhenthetransactionoccurredimpactneitheraccountingprofitnortaxableincome(orlossdeductions);Taxabletemporarydifferencesofinvestmentforsubsidiaries,associatedcompanyandjointventures,thereversalofthetemporarydifferencescancontrolthetimeandthetemporarydifferencesintheforeseeablefutureitisnotlikelytoswitchback.
Thecompanyrecognizesdeferredincometaxassetsarisingfromtemporarydifferencesunderthelimitoftaxableincomethatislikelytogetandcanbeusedtodeducttemporarydifferences,unlessthedeductibletemporarydifferencesproducedinthefollowingtransactions:Althoughthetransactionisnotaconsolidation,butwhenthetransactionoccurredimpactneitheraccountingprofitnortaxableincome(orlossdeductions);Thededucibletaxabletemporarydifferencesofinvestmentforsubsidiaries,associatedcompanyandjointventures,deferredincometaxassetsrecognizedastemporarydifferencesintheforeseeablefutureislikelytoswitchback,andthefutureislikelytobeusedtotouchdeductiondeductibletemporarydifferencesoftaxableincome.
Thebalancesheetdate,conclusiveevidencethatthecomingperiodislikelytobesufficienttaxableincometodeducttemporarydifferences,itshouldrecognizeddeferredincometaxassetsofidentifiedpreviously.
TheCompanywasthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilities,accordingtoprovisionsofthetaxlaw,inaccordancewiththeexpectedrecoveryoftheassetsorliquidationofliabilitiesduringtheapplicabletaxratesmeasurement,andreflectthebalancesheetdateisexpectedtorecoverassetsorliquidationofliabilitiesimpactoftheincometaxform.
Thebookvalueofdeferredtaxassetsmustbereviewedatthebalancesheetdate.
Ifthetaxableincomethatarousesinthefutureisunlikelysufficienttodeductthebenefitofthedeferredtaxassets,thebookvalueofthedeferredtaxassetsshouldbewrite-down.
Iflikely,theamountthathasbeenwrite-downshouldbewrite-off.
20.
GovernmentgrantsGovernmentgrantsisestimatedwithfairvalueunderthecircumstancesofensurethatareasonablereceiveandattachedtosatisfythegovernmentgrants.
Governmentgrantsrelatedtoearningusingtorecoveryexpensesandlossforfutureperiod,recognizedasdeferredincome,andrecordedascurrentprofitandlosswhentheexpensesandlosshavebeenrecognized;assetsrelatedtogovernmentgrants,recognizedasdeferredincome,andtheaverageusefullifeofassetsrelatedtothedistribution,recordincurrentprofitandloss.
21.
Consolidatedfinancialstatementsa.
PrinciplesofconsolidatedfinancialstatementsParentcompanyshouldtakeallSubsidiariesintothescopeofconsolidatedfinancialstatements.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)26b.
MethodsofpreparingconsolidatedfinancialstatementsBaseonfinancialstatementsofparentcompanyandsubsidiaries,willconsolidatewiththeparentcompanyoftheimportantinter-subsidiaryinvestment,come-and-go,inventoryandprocurementect.
insidertradingandprofitsoffsetitemizedmerger,andminorityshareholdersequityandminorityshareholdersprofitandloss.
c.
Minorityowner'sequityandminorityshareholdersprofitandlossThenetprofitandlossofSubsidiaryCompanyisminorityshareholdersequity,recordedas"MinorityOwner'sequity"inconsolidatedbalancestatementsTheowner'sequityofSubsidiaryCompanyisminorityowner'sequity,recordedas"MinorityOwner'sequity"inconsolidatedbalancestatementsd.
DealwiththeexcesslossMinorityshareholdersofsubsidiarycompanycurrentlossismorethanthebeginningoftheowner'sequityshareintheenjoyment,ifthechartersubsidiaryofminorityshareholdersagreementstipulatestheobligationtobear,andminorityshareholdershavetheabilitytomakeupfortheexcessdeficitbytheinterestsofminorityshareholders.
Otherwise,theexcessdeficitreducesparentrightsandinterestsofowners,subsidiariesintheperiodafterachievingprofits,offsetbytheparentcompanyintheinterestsoftheownersarebornebytheminorityshareholdersofthelosses,allattributabletotheparentcompanyoftheowner'sequity.
e.
SubsidiaryreducesandincreaseswithinthescopeofconsolidatedfinancialstatementDuringthereportingperiod,subsidiaryofincreasedbyconsolidationunderjointcontrol,recordedtheincome,expenses,profitsofbeginningandfinalforcurrentreportinconsolidatedincomestatement.
Subsidiaryofincreasedbyconsolidationundernon-jointcontrol,recordedtheincome,expenses,profitssincepurchasedaytofinalinconsolidatedincomestatement.
Duringthereportingperiod,disposalofsubsidiaries,income,costs,profitofsubsidiariestodisposesincebeginningtodisposaldateisrecordedinconsolidatedincomestatement.
Ⅴ.
ChangesinaccountingpoliciesandaccountingestimatesNochangeontheCompany'saccountingpoliciesandaccountingestimatesandalsonocorrectiononaccountingerrorinthereportingperiod.
Ⅵ.
TaxationTaxbaseTaxrateValueaddedtaxRevenueofsale,processingandrepair17%BusinesstaxLeaseincome,taxablelaborincome5%ConsumptiontaxRevenueoftaxablegoodssale3%CitymaintenanceandconstructionsurtaxTurnovertaxespaid7%EducationalsurchargeTurnovertaxespaid3%CorporateincometaxTaxableincome15%,25%Accordingtotherelevantprovisionsofthestatestaxlawsandregulations,sinceApril1,2006theconsumptiontaxratechangesfrom10%to3%.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)27AccordingtoNO.
47[2002](issuedbyStateTaxationAdministration),,TheCompanyanditssubsidiary,ChongqingJiansheVehicle-usedAir-conditionerCo.
,Ltd,enjoypreferentialpoliciesfordevelopingthewesternregion,incometaxrateis15%from2007to2010.
Othersubsidiary,theincometaxrateis25%.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)28Ⅶ.
ConsolidationandConsolidatedfinancialstatements1.
SubsidiarymergesunderthesamecontrolNameofinvestmentIncorporationlocationScopeofbusinessRegisteredcapital(tenthousandyuan)Investmentfromparentcompany(tenthousandyuan)InvestmentproportionVotingshareConsolidatedornotChongqingNorthImport-ExportTradeCo.
,Ltd.
ChongqingOperatorsandagentskindsofcommoditiesandtechnologyimportandexportbusiness(exceptprohibitionsandrestrictionsbynationallawsorregulations)6,037.
806,037.
80100%100%Yes2.
SubsidiariesmergeunderdifferentcontrolsNameofinvestmentIncorporationlocationScopeofbusinessRegisteredcapital(tenthousandyuan)Investmentfromparentcompany(tenthousandyuan)InvestmentproportionVotingshareConsolidatedornotShanghaiJiansheMotorcycleCo.
,Ltd.
ShanghaiMotorcycles,lightMotorcyclesandcomponentsmanufacturesale,Chudongchemanufacture&sale,electricbicyclesandrelatedpartsandcomponentsmanufacture,sale(oftheoperatorsinvolvedwiththebusinesslicensepermitsoperators)1,60081651%51%Yes3.
OthersubsidiariesNameofinvestmentIncorporat-ionlocationScopeofbusinessRegisteredcapital(tenthousandyuan)Investmentfromparentcompany(tenthousandyuan)InvestmentproportionVotingshareConsol-idatedornotChongqingJiansheSalesCo.
,Ltd.
ChongqingSalesofMotorcyclesandaccessories,withair-conditioningandvehicleaccessories,mechanicalandelectricalproducts(excludingMotorcyclevehicles),metalmaterials(excludingraremetals),householdelectricalrepair1,2001,200100%100%YesChongqingJiansheVehicle-usedAir-conditionerCo.
,Ltd.
ChongqingManufacture,saleandcarair-conditionerparts,automotiveaccessoriesandair-conditioningmaintenance16,00016,000100%100%YesChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)29NameofinvestmentIncorporat-ionlocationScopeofbusinessRegisteredcapital(tenthousandyuan)Investmentfromparentcompany(tenthousandyuan)InvestmentproportionVotingshareConsol-idatedornotGuangxiJiansheMotorcycleCo.
,Ltd.
NanningMotorcycleandsparepartssales1507852%52%YesChengduJiansheSalesCo.
,Ltd.
ChengduWholesale,retail,Motorcycleandparts5050100%100%YesHohhotJiansheSalesCo.
,Ltd.
HohhotWholesale,retail,Motorcycleandparts5050100%100%YesChongqingJiansheOperation&SalesMotorcycleCo.
,Ltd.
ChongqingMotorcycleandsparepartssales5050100%100%YesNingboJiansheMotorcycleManufacturingCo.
,Ltd.
ChongqingMotorcycleandsparepartssalesandproduce1,60081651%51%NoNote:1)CompanydirectlyholdsChongqingJiansheNorthImport&ExportTradeCo.
,Ltd.
(the"Import&exportcompany")95.
14%stock,Company'swhollyownedsubsidiaryChongqingJiansheSalesCo.
,Ltd.
holds4.
86%shareofImport-exportcompany.
Thus,theCompanyholds100%shareofImport-exportCompany.
2)CompanydirectlyholdsChongqingJiansheVehicle-usedAir-conditionerCo.
,Ltd(the"Air-conditionerCompany")43.
75%sharewhileitswhollyownedsubsidiaryholds37.
50%shareofChongqingJiansheSalesCo.
,Ltd.
.
Import&ExportCompany,whose100%stockisholdsbytheCompany,holds18.
75%shareofAir-conditioner.
Thus,Companyholds100%shareofImport&ExportCo.
,Ltd.
3)Companyheld52%stockofGuangxiJiansheMotorcycleCo.
,Ltdthroughitswhollyownedsubsidiary,ChongqingJiansheSalesCo.
,Ltd.
;held100%stockofChengduJiansheSalesCo.
,Ltd.
throughitswhollyownedsubsidiary,ChongqingJiansheSalesCo.
,Ltd.
;held100%stockofHohhotJiansheSalesCo.
,Ltd.
throughitswhollyownedsubsidiary,ChongqingJiansheSalesCo.
,Ltd.
;4)CompanydirectlyheldChongqingJiansheOperation&SalesMotorcycleCo.
,Ltd.
(the"Operation&SalesCompany")45%stock,awhollyownedsubsidiaryChongqingJiansheSalesCo.
,Ltd.
held55%stock.
Thus,Companyheld100%stockofOperation&Sales.
5)Thesubsidiarycompany,ShanghaiJiansheMotorcycleCo.
,Ltd.
,hasbeenconsolidatedunderdifferentcontrol.
Becausethebalanceafterdeductingtheamortizationfromthedifferencebetweenthefair-valueofassetorliabilityanditsbook-valueisunabletobeamortizedtotangibleassetsandliabilitiesofShanghaiJiansheMotorcycleCo.
,Ltdapieceunderareasonablemethod,Companyhaddecidedtoaveragelyamortizethisbalancewithinresidualservicelifeaccordingto.
Theunamortizedbalanceshallbeitemizedandshownin"Othercurrentassets"inconsolidatedbalancesheet.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)304.
SubsidiarythatcontrolledbytheCompanybutwithoutthescopeofconsolidation.
VotingshareReasonofnotbeconsolidatedNingboJiansheMotorcycleManufacturingCo.
,Ltd.
51%Operationterminated,investmenthasbeenfullyimpaired5.
Thescopeofconsolidationdidnotchangedduringthereportingperiod.
6.
Minorityintereston31Dec,2008FinancialpositionAmountbelongtoMinorityownerCompanySharepercentageNetassetNetprofitEquityProfitandlossGuangxiJiansheMotorcycleCo.
,Ltd.
48%46,579.
5815,251.
2422,358.
217,320.
60ShanghaiJiansheMotorcycleCo.
,Ltd.
49%6,947,309.
25147,248.
233,404,181.
5372,151.
63Total6,993,888.
83162,499.
473,426,539.
7479,472.
23Ⅷ.
Notestotheconsolidatedfinancialstatements1.
CashandCashEquivalents20082007OriginalcurrencyExchangerateFunctionalcurrencyOriginalcurrencyExchangerateFunctionalcurrencyCash-RMB83,952.
811.
0083,952.
81131,043.
951.
00131,043.
94-USD---8,169.
007.
304659,671.
28-EUR1,700.
009.
659016,420.
303,550.
0010.
666937,867.
50-JPY1,985.
000.
0756150.
07173,985.
000.
064111,146.
18Subtotal100,523.
18239,728.
90Cashinbank-RMB88,742,258.
741.
0088,742,258.
74221,685,687.
161.
00221,685,687.
16-USD845,672.
866.
83465,779,835.
73654,441.
717.
30465,039,448.
45-EUR479,814.
389.
65904,634,527.
10----JPY4,157.
000.
0756314.
274,814,157.
000.
0641315,953.
12Subtotal99,156,935.
84227,041,088.
73Othermonetaryfund-RMB--554,665,409.
40727,616,940.
931.
00727,616,940.
93-USD---34,500.
927.
3046252,015.
42-EUR182,900.
009.
65901,766,631.
10---Subtotal556,432,040.
50727,868,956.
35Total655,689,499.
52955,149,773.
98Note:1)Thebalanceofcashandcashequivalentsdecrease31.
35%attheendof2008thanthatof2007,thisismainlyChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)31becausetheguaranteedepositsforbankdraftdecreasedandprepaymentonequipmentsonrelocationprojectincreased.
2)AsatDecember31,2008,theothermonetaryfunds550,096,110.
10yuanisguaranteedepositsforbankdraft,and5,049,127.
40yuanisguaranteedepositsforL/C.
3)Upto31Dec,2008,demanddepositoftheCompanythatdepositatChinaEngineryInstrumentsCompany'sFinancialCo.
,Ltdis2,325,327.
62yuan.
ChinaEngineryInstrumentsCompany'sFinancialCo.
,LtdisasubsidiarycompanyofcontrollingshareholderoftheCompany.
It'sanon-bankfinancialintermediary.
2.
Transactionalfinancialasset20082007Stock-1,352,400.
00Total-1,352,400.
00Note:Company'sinitialinvestmentcostis806,400.
00yuan.
TheinvesteeisSTMindong(StockNO.
000536).
It'stransferredintoavailable-for-salefinancialassetsincurrentyear.
3.
NotesreceivableItem20082007Bankacceptance85,162,740.
7059,579,710.
29Total85,162,740.
7059,579,710.
29Note:Notesreceivablemortgagedasat31Dec,2008is12,530,000.
00yuan.
4.
AccountsReceivables1)AccountsReceivable20082007ItemAmountProportion(%)ProvisionforbaddebtsAmountProportion(%)ProvisionforbaddebtsIndividuallysignificantitems69,973,327.
5147.
243,498,666.
3798,539,947.
3049.
564,963,143.
95Groupofindividuallyinsignificantitemswithsimilarcreditriskcharacteristicsthathassignificantrisk8,279,158.
275.
597,628,851.
475,971,436.
443.
003,232,610.
96Otherinsignificantitems69,855,322.
7547.
173,691,099.
0994,333,182.
7247.
445,506,937.
32Total148,107,808.
53100.
0014,818,616.
93198,844,566.
46100.
0013,702,692.
23Note:Themeasurementofidentifyingwhetheranaccountreceivableissignificantornotisonconditionthattheindividualamountis5,000,000yuan,ascertainingonthesizeandbusinessnatureoftheCompany.
TheIndividuallysignificantaccountsreceivabledidn'tdevaluedaftertest.
Companycountsthemintotheagedanalysistocalculatetheprovisionforbaddebtsonaccountsreceivable.
Themeasurementofrecognizing"Groupofindividuallyinsignificantitemswithsimilarcreditriskcharacteristicsthathassignificantrisk"isthatitisobviousthattheaccountsreceivableishardtoberecoveredortheageoftheaccountislongerthanthreeyears.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)32Ageanalysisofaccountsreceivablelistsasfollows:20082007AgeAmountProportion(%)ProvisionfordoubtfuldebtsAmountProportion(%)ProvisionfordoubtfuldebtsWithinoneyear135,961,657.
7292.
226,798,082.
88190,077,842.
1395.
599,819,421.
071to2years3,817,159.
512.
44381,715.
96624,068.
430.
3158,397.
372to3years49,833.
030.
039,966.
612,511,314.
161.
26592,262.
83Over3years8,279,158.
275.
307,628,851.
475,631,341.
742.
833,232,610.
96Total148,107,808.
53100.
0014,818,616.
93198,844,566.
46100.
0013,702,692.
23Note:a.
Asat31Dec,2008,totalamountofthetopfivedebtorsaccountedfor38%oftotalaccountsreceivable.
Topfivedebtorsareasfollows:DebtorAmountCategoriesAgeChinaNorthernvehicleCo.
,Ltd.
17,286,275.
00GoodssalingWithinoneyearYAMAHAMOTORCO.
,LTD11,997,272.
77GoodsexportWithinoneyearSALESGLOBALCOMPANYNIG.
LTD9,414,001.
47GoodsexportWithinoneyearChongqingChanganAutomobileCompanyLimited9,938,635.
60GoodsexportWithinoneyearChongqingChanganSuzukiCo.
,Ltd.
7,648,993.
00GoodsexportWithinoneyearTotal56,285,177.
84b.
On31December2008,withintheaforesaidbalance,noaccountsreceivableisduefromshareholderthatholds5%ormoretheCompany'svotingshares;c.
Asat31Dec,2008,balanceoftheprovisionforbaddebtaccountedonindividuallyrecognitionmethodis6,978,544.
66yuan,including3,816,117.
55yuanaccountedincurrentyear;d.
On31Dec,2008,guaranteedepositsforL/Cthatdonotmeettherecognizingconditionsofterminationis7,931,360.
15yuan.
e.
On31Dec,2008,accountreceivablesduefromrelatedpartiesareasfollows:20082007Accountduefromotherrelatedparties9,938,635.
6017,968,516.
94Total9,938,635.
6017,968,516.
94Percentageoftotalaccountreceivable6.
36%9.
04%2)Otherreceivables20082007AmountProportion(%)BaddebtAmountProportion(%)BaddebtIndividuallysignificantitems190,886,762.
9394.
4112,407,318.
953,013,664.
0011.
103,013,664.
00Groupofindividuallyinsignificantitemswithsimilarcreditriskcharacteristicsthathassignificantrisk1,998,024.
160.
991,671,129.
453,212,728.
5411.
832,819,152.
90ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)33Otherinsignificantitems9,309,285.
144.
601,090,880.
0020,930,533.
9877.
071,250,189.
13Total202,194,072.
23100.
0015,169,328.
4027,156,926.
52100.
007,083,006.
03Note:Themeasurementofidentifyingwhetheranaccountreceivableissignificantornotisonconditionthattheindividualamountisover3,000,000yuan,ascertainingonthesizeandbusinessnatureoftheCompany.
Thecreditor'srighttoShenzhenJiansheMotorcycleCo.
,Ltd.
is3,013,664.
00yuan,cameintobeingduringthesettingupofit.
Becauseithasn'tplungedintonormaloperation,theCompanyhasraisedprovisionforthisreceivableatfullamountafteremployingdevalue-testonitindividually.
Themeasurementofrecognizing"Groupofindividuallyinsignificantitemswithsimilarcreditriskcharacteristicsthathassignificantrisk"isthatitisobviousthattheaccountsreceivableishardtoberecoveredortheageoftheaccountislongerthanthreeyears.
Ageanalysisofotherreceivablesisasfollows:20082007AmountProportion(%)BaddebtAmountProportion(%)BaddebtWithin1year21,674,885.
2079.
811,736,981.
9821,148,019.
8578.
591,121,688.
611to2years5,450.
000.
02718.
003,229,879.
9012.
003,035,285.
592to3years3,113,146.
7211.
463,030,640.
05150,875.
410.
5621,193.
07Over3years2,363,444.
608.
702,314,666.
012,380,099.
288.
852,321,792.
52Total27,156,926.
52100.
007,083,006.
0326,908,874.
44100.
006,499,959.
79Note:a.
Theamountoftop5debtorsaccountfor95.
36%oftotalbalanceofotheraccountreceivablesasof31Dec,2008:DebtorAmountcategoryAgeChongqingJiansheIndustrialCo.
,Ltd.
184,086,243.
00relocationprojectWithinoneyearChongqingJiansheYamahaMotorcycleCo.
,Ltd.
3,786,855.
93goodsWithinoneyearShenzhenJiansheMotorcycleCo.
,Ltd.
3,013,664.
00goodsOver3yearsNingboJiansheMotorcycleChongqingBranch692,035.
31goodsOver3yearsOtherfunctionaldepartmentoftheCompany1,238,367.
84standbyWithinoneyearTotal192,817,166.
08b.
Nootherreceivableisduefromashareholderwhoholds5%ormoreoftheCompanyvotingshares.
c.
Theproportionofrelatedpartiesaccountsfor0.
27%ofthetotalbalanceofthisotherreceivables.
5.
Prepayment20082007AmountProportion(%)AmountProportion(%)Within1year148,678,292.
5096.
92107,820,624.
4197.
601to2years4,727,778.
973.
082,649,950.
032.
40Total153,406,071.
47100.
00110,470,574.
44100.
00ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)34Note:1)Thebalanceattheendof2008is38.
87%morethanthatof2007.
ThisismainlybecauseinthereportingperiodtheequipmentsimportedfortheCompany'srelocationprojecthadnotbeendeliveredortestedyet.
Thisleadstoanincreaseonthebalanceofprepaymentattheendofthereportingperiod.
Mainequipmentsupplierslistasfollows:SupplierAmountAgeZhejiangMarsonkertEngine&electronicCo.
,Ltd.
15,010,764.
00WithinoneyearChongqingFanshengEngine&ElectronicTechniqueImport-exportCo.
,Ltd.
12,032,191.
50WithinoneyearGuangzhouElectronicEquipmentResearchInstitute10,350,000.
00WithinoneyearShanghaiFanakeAutomatonCo.
,Ltd.
8,028,000.
00WithinoneyearBeijingMachineryIndustrialAutomatizationResearchInstitute8,499,000.
00WithinoneyearTotal53,919,955.
502)Noprepaymentisduefromashareholderwhoholds5%ormoreofthevotingsharesoftheCompanyincludedinthebalanceofprepayment.
3)ThemainreasonfortheprepaymentoveroneyearlistedaboveisbecauseCompanyhadnotsettledtheaccountswithsuppliers.
4)Totalamountofthefivetopdebtorsaccountfor37.
21%ofthetotalendingbalanceofprepayment.
6.
Inventories1)Inventories31Dec,2007AdditionSubtraction31Dec,2008RawMaterials40,028,208.
742,455,905,946.
072,455,893,045.
6440,041,109.
17Workinprogress36,061,651.
582,299,790,841.
172,312,918,294.
2822,934,198.
47Finishedgoods228,750,549.
552,355,986,907.
002,457,885,899.
06156,851,557.
49Others107,990.
22-24,552.
7083,437.
52Total304,948,400.
097,141,683,694.
247,226,721,791.
68219,910,302.
65Note:Thebalanceofinventoriesdecrease27.
96%fromtheendof2007totheendof2008.
ThisismainlybecauseofthedecreaseofproductioninthefourthquarterresultsfromtheCompany'srelocationproject.
2)Provisionfordeclineinvalueofinventory31Dec,2007AdditionSubtraction31Dec,2008RawMaterials-2,478,308.
24-2,478,308.
24Workinprogress-2,565,267.
36-2,565,267.
36Finishedgoods3,877,104.
9114,097,973.
44-17,975,078.
35Total3,877,104.
9119,141,549.
04-23,018,653.
95Note:Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealizablevalue.
Netrealizablevaluereferstotheinventories'estimatedvalueindailyoperatingprocessafterdeductingestimatedfuturecosts,expensesonsaleandrelatedtaxes.
7.
Available-for-salefinancialasset20082007ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)35Available-for-saleequityinstruments1,352,400.
00-Total1,352,400.
00-Note:Available-for-salefinancialasseton31Dec,2008oftheCompanyisstockinvesttoSTMindongofwhichstocknumberis000536.
Theinitialinvestcostis806,400.
00yuan.
TransactionofSTMindong'sstockhadbeentemporarilystoppedonDec2006.
Thefairvalueofaforesaidavailable-for-saleequityinstrumentsismeasuredatthemarketvalueattheendof2008.
8.
Long-termequityinvestment20082007BookbalanceProvisionforimpairmentBookvalueBookbalanceProvisionforimpairmentBookvalueJointventure582,233,424.
48-582,233,424.
48523,203,541.
37-523,203,541.
37Associate2,912,569.
13-2,912,569.
13552,527.
69-552,527.
69Others4,340,915.
044,340,915.
04-4,340,915.
044,340,915.
04-Total589,486,908.
654,340,915.
04585,145,993.
61528,096,984.
104,340,915.
04523,756,069.
06AssociatesandjointlycontrolledentitiesLocationScopeofbusinessSharepercentageVotingshare31Dec,2008Netasset2008'sannualOperatingrevenue2008'sannualNetprofitJointventureChongqqingPingshanTaikaiCarburetorCo.
,Ltd.
ChongqingManufacture&SaleEngine-usedCarburetor49%49%141,460,283.
05105,258,883.
141,906,805.
98ChongqingJiansheYAMAHAMotorcycleCo.
,Ltd.
ChongqingManufacturing&SalingMotorcycleandParts50%50%527,845,475.
572,259,280,452.
09110,449,563.
36ZhuzhouJiansheYAMAHAMotorcycleCo.
,Ltd.
ZhuzhouManufacturing&SalingMotorcycleandParts50%50%514,232,237.
26597,373,246.
406,939,152.
31AssociateChongqingFuyedaCo.
,LtdChongqingGoodsTransport&Stock20%20%2,758,997.
0744,569,063.
26-3,641.
34ChongqingTongshengJiansheIndustrialCo.
,Ltd.
ChongqingMotorcyclepartsproduce&sale30%30%7,869,232.
34140,755,575.
97-2,189,582.
28Note:NoneofCompany'sassociatesandjointlycontrolledentitiesemployedissuedbyMinistryofFinancein2006.
Companyhasadjustedthefinancialstatementsoftheseentitiesinaccordwith.
Theconfirmationandmeasurementoflong-termequityinvestmentandinvestmentincomeisdecidedthereundertheseadjustedfinancialstatements.
Moredetailslistasfollows:SharepercentageInitialamount31Dec,2007AdditionSubtraction31Dec,2008CostmethodChongqingJingjianVehicle-usedAir-conditioner6.
74%3,200,000.
003,200,000.
00--3,200,000.
00NingboJiansheMotorcycle51.
00%8,160,000.
001,140,915.
04--1,140,915.
04Subtotal11,360,000.
004,340,915.
04--4,340,915.
04ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)36SharepercentageInitialamount31Dec,2007AdditionSubtraction31Dec,2008EquitymethodChongqqingPingshanTaikai49%67,316,539.
8771,375,252.
09934,334.
93598,809.
6671,710,777.
36ChongqingJiansheYamaha50%154,699,622.
03202,262,762.
5155,224,781.
68-257,487,544.
19ZhuzhouJiansheYamaha50%215,710,320.
08249,565,526.
773,469,576.
16-253,035,102.
93ChongqingFuyeda20.
00%400,000.
00552,527.
69728.
27551,799.
42ChongqingTongshengJianshe30.
00%3,000,000.
003,000,000.
00639,230.
292,360,769.
71Subtotal441,126,481.
98523,756,069.
0662,628,692.
771,238,768.
22585,145,993.
61Total452,486,481.
98528,096,984.
1062,628,692.
771,238,768.
22589,486,908.
65Note:TheCompanysetupChongqingTongshengJianshetogetherwithChongqingTongshengIndustry(group)Co.
,Ltdthisyear.
TheregisteredcapitalofChongqingTongshengJiansheis10,000,000.
00yuan,whichhadbeenvalidatedbyChongqingWulianAccountingFirmandissuedreport"Wulian(2007)NO.
021",including3,000,000.
00yuanofpracticalityinvestedbytheCompany.
Impairmentoflong-termequityinvestment31Dec,2007RaisedincurrentyearWritebackincurrentyearOtherdecrease31Dec,2008ChongqingJingjianVehicle-usedAir-conditioner3,200,000.
00---3,200,000.
00NingboJiansheMotorcycleManufacturing1,140,915.
04---1,140,915.
04Total4,340,915.
04---4,340,915.
049.
Fixedassets31Dec,2007AdditionSubtraction31Dec,2008Totalcost1,108,006,085.
84362,485,620.
03380,000,716.
431,090,490,989.
44House&Building129,607,429.
73256,061,898.
11118,458,968.
62267,210,359.
22Machine&Equipment939,838,848.
2199,425,726.
84258,426,191.
76780,838,383.
29Vihecle&Officefacility38,559,807.
906,997,995.
083,115,556.
0542,442,246.
93Totalaccumulateddepreciation775,506,387.
1756,670,718.
79299,039,552.
77533,137,553.
19House&Building61,261,711.
865,195,837.
0962,106,753.
534,350,795.
42Machine&Equipment695,301,096.
2048,144,150.
34234,941,217.
98508,504,028.
56Vihecle&Officefacility18,943,579.
113,330,731.
361,991,581.
2620,282,729.
21Totalimpairment681,430.
12--681,430.
12Machine&Equipment681,430.
12--681,430.
12Totalbookvalue331,818,268.
55--556,672,006.
13House&Building68,345,717.
87--262,859,563.
80Machine&Equipment243,856,321.
89--271,652,924.
61Vihecle&Officefacility19,616,228.
79--22,159,517.
72Note:1)Withintheincreasedcostoffixedassets,322,803,000.
00yuanoffixedassetsistransferredfromconstructioninprogresswhileotherfixedassetsareequipmentsthatneednoinstallation;2)Withinthedecreasedfixedassetsincurrentyear,costoffixedassetsthattransferredintothelossofrelocationprojectis232,829,300.
00yuanwhilenetvalueis71,265,900.
00yuan.
Inordertoreducetheproducingcostofparts,theCompanytransferredasetofmachineandequipmentofwhichcostis138,563,900.
00yuanandnetvalue8,417,500.
00yuantosupportingmanufacturer.
3)ThepropertyrightprocedureoftheCompany'snewhousesandbuildingshadnotbeencompletedyetbecausetheCompany'srelocationprojecthadnotbeenwhollyfinishedandfinalaccounted.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)374)TheCompany'smachinesandequipmentsofwhichcostis280,710,100.
00yuanandnetvalue113,006,700.
00yuanarepledged.
TheCompany'ssubsidiarycompany,ShanghaiJiansheMotorcycleCo.
,Ltd.
,pledgeditshousewithbooknetvalueof7,859,700.
00yuan(thishadbeenagreedat20,000,000.
00yuanbytwoparties)toIndustrial&CommerceBankofChinaShanghaiFengxianBranchforashort-termloanof4,000,000.
00yuan.
10.
ConstructioninprogressProject31Dec,2007AdditionTransferredtofixedassetOtherdecrease31Dec,2008ResourceoffundNewfactoryrelocationprojectofChongqingJiansheMotorcycle3,443,414.
24291,299,791.
74203,566,655.
6367,258,946.
6323,917,603.
72Self-financeNewfactoryrelocationprojectofVehicle-usedCo.
,Ltd.
-136,727,676.
90113,149,260.
8923,578,416.
01-Self-financeEquipmentreconstruction6,102,645.
16-6,087,056.
16-15,589.
00Self-financeTotal9,546,059.
40428,027,468.
64322,802,972.
6890,837,362.
6423,933,192.
72Note:1)TheCompanyentrustedChongqingJiansheMachineryCo.
,LtdtobuilditsprojectofMotorcycleRelocationTechnicalAmeliorationandprojectofRelocationofVehicle-usedAir-conditionerCo.
,Ltd.
accordingtotheagreement,signedbybothsidesonJuly29,2008.
Theresourceofthefundfortherelocationprojectisself-ownedfundandcompensationforrelocationlossoftheCompanyfromChongqingJiansheIndustrialCo.
,Ltd.
Thetrustee,ChongqingJiansheMachineryCo.
,Ltd,preparedandreportfundplantothetrustorforapprovalaccordingtobudgetaryinvestmentoneachproject,schedulecontrolandconstructionplanofeachproject.
TheCompanybetimespaystheprojectfundtoappropriativebankaccountoftrusteeaccordingtotheannualscheduleonfundapprovedbeforesothattoinsuretherelocationprojectgoonsmoothly.
TheCompanywillentrustanagencytoauditthefinalaccountwhentheprojectiscompleted.
Thetrustorandtheconstructionside,thetrustee,willdealwiththeprojectsettlementonthebaseofcostaudited.
ThisrelatedpartytransactionhadbeenapprovedbytheCompany'sFirstShareholdersMeeting;2)Otherdecreaseofconstructioninprogressisthevalueoflandthattransferredtointangibleassets;3)NocapitalizedborrowingexpenseisincludedintheCompany'sfundonrelocationproject.
11.
Intangibleassets31Dec,2007IncreaseDecrease31Dec,2008Totalcost:3,737,274.
0093,672,328.
96-97,409,602.
96Landuseright3,737,274.
0090,837,362.
64-94,574,636.
64Non-patenttechnique-2,834,966.
32-2,834,966.
32Accumulatedamortization:341,696.
762,997,608.
18-3,339,304.
94Landuseright341,696.
762,273,155.
56-2,614,852.
32Non-patenttechnique-724,452.
62-724,452.
62Bookvalue:3,395,577.
2490,674,720.
78-94,070,298.
02Landuseright3,395,577.
2488,564,207.
08-91,959,784.
32Non-patenttechnique-2,110,513.
70-2,110,513.
70Note:1)AsaforesaidinNote"Ⅷ.
10.
Constructioninprogress",thepropertyrightprocedureoftheCompany'slanduserighthadnotbeencompletedyetbecausetheCompany'srelocationprojecthadnotbeenwhollycompletedandfinalaccounted.
2)AlllanduserightoftheCompanyhadbeenmortgagedforloansasat31Dec,2008.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)3812.
DevelopmentexpenditureProgram31Dec,2007IncreaseDecrease31Dec,2008CQ125-6B(F2)-17,547.
17-17,547.
17JS110-B(F3)-268,404.
26-268,404.
26JS110-J356,085.
38-356,085.
38-JS110-K774,749.
312,169,085.
95-2,943,835.
26JS125-28A1,856,927.
331,060,804.
63-2,917,731.
96JS125-6A1,440,218.
74-1,440,218.
74-JS125-6C1,016,566.
87559,756.
87-1,576,323.
74JS125GY-5493,863.
99533,632.
34-1,027,496.
33JS125-H-3,900.
00-3,900.
00JS125T-C3,334,793.
581,005,749.
36-4,340,542.
94JS150-31,104,168.
771,641,726.
61-2,745,895.
38JS150-B2,736,380.
331,168,024.
52-3,904,404.
85JS250ATV-81,729,904.
731,178,704.
12-2,908,608.
85JS400-7-1,814,028.
75-1,814,028.
75JS400ATV-5-181,454.
71-181,454.
71JS400K/KDC-95,731.
60-95,731.
60JS700ATV-792,828.
71-792,828.
71JS400ATV-3686,581.
231,095,683.
22-1,782,264.
45F3369,682.
511,518,562.
30-1,588,244.
81F28engine760,884.
42277,777.
781,038,662.
20-F27engine1,244,715.
12451,269.
58-1,695,984.
70F33engine-949,171.
53-949,171.
53700engine894,450.
80410,845.
98-1,305,296.
78Total18,499,973.
1117,194,689.
992,834,966.
3232,859,696.
78Note:1)Company'stotalinternaldevelopmentexpenditureincurrentperiodare37,236,348.
12yuan,including20,041,658.
13yuaninresearchingprocessand17,194,689.
99yuanindevelopmentprocess.
2)TheprogramJS110-J,JS125-6AandF28enginehadbeentransferredtointangibleassetsandhadalreadybegantoamortizeinreportingperiod.
13.
Long-termdeferredexpense31Dec,2007IncreaseduringtheyearDecreaseduringtheyearAmortizationincurrentyear31Dec,2008Foundrymould3,128,809.
864,724,615.
43-3,272,846.
373,272,846.
37Rudimentaryfeeofaluminumequipment(83)5,901,219.
52--621,180.
965,280,038.
56Total9,030,029.
384,724,615.
43-3,894,027.
339,860,617.
4814.
Deferredtaxassetsandliabilities1)Deferredtaxassets31Dec,200831Dec,2007DeductibletemporarydifferenceDeferredtaxassetsDeductibletemporarydifferenceDeferredtaxassetsProvisionforbaddebtsonaccountsreceivables16,185,416.
112,427,812.
428,133,937.
041,220,090.
56Provisionfordeclineinvalueofinventory23,018,653.
953,452,798.
093,877,104.
91581,565.
74Impairmentoflong-termequityinvestment1,140,915.
04171,137.
261,140,915.
04171,137.
26Provisionforimpairmentonfixedassets681,430.
12102,214.
52681,430.
12102,214.
52Total41,026,415.
226,153,962.
2913,833,387.
112,075,008.
082)Deferredtaxliabilities31Dec,200831Dec,2007ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)39Must-ratepayingtemporarydifferenceDeferredincometaxliabilitiesMust-ratepayingtemporarydifferenceDeferredincometaxliabilitiesDevelopmentexpenditures--18,499,973.
112,774,995.
97Total--18,499,973.
112,774,995.
97Note:Inaccordancewith,issuedbyState'sGeneralTaxDepartment,2008NO.
116,15.
ProvisionforImpairmentonassets31Dec,2007AmountraisedincurrentyearWritebackWriteoff31Dec,2008Baddebtprovision20,785,698.
2610,399,158.
73-1,196,911.
6629,987,945.
33ProvisionforImpairmentoninventories3,877,104.
9119,141,549.
04--23,018,653.
95Impairmentforlong-termequityinvestment4,340,915.
04---4,340,915.
04Impairmentforfixedassets681,430.
12---681,430.
12Total29,685,148.
3329,540,707.
77-1,196,911.
6658,028,944.
4416.
Othernon-currentassets31Dec,2007IncreaseDecrease31Dec,2008DebitBalanceofequityinvestmentonShanghaiJiansheMotorcycleunderformeraccountingsystem2,856,000.
00-408,000.
002,448,000.
00Total2,856,000.
00-408,000.
002,448,000.
00Note:FormoredetailsofOthernon-currentassets,pleaseturntoNote"Ⅶ.
Consolidationandconsolidatedfinancialstatements".
17.
Short-termloanCategory31Dec,200831Dec,2007Mortgageloan190,400,000.
0082,000,000.
00Guaranteeloan287,900,000.
00465,310,000.
00Inpawnloan112,531,360.
155,630,281.
96Total590,831,360.
15552,940,281.
96Note:1)GuaranteeloanDebtorDebteeAmountofloanGuaranteeentityICBCChongqingYangjiapinBranch28,000,000.
00ChongqingJiansheIndustrialChongqingJiansheMotorcycleCo.
,Ltd.
HuaxiaBankChongqingJiulongpoBranch32,000,000.
00ChongqingJiansheIndustrialSubtotal60,000,000.
00BankofCommunicationJiulongpoBranch4,900,000.
00ChongqingJiansheMotorcycleBankofCommunicationJiulongpoBranch40,000,000.
00SouthwesternEngineryIndustrialChongqingBankJiulongpoBranch7,000,000.
00SouthwesternEngineryIndustrialChinaCITICChongqingBranch30,000,000.
00SouthwesternEngineryIndustrialChongqingJiansheVehicle-usedAir-conditionerCo.
,Ltd.
HuaxiaBankJiulongpoBranch32,000,000.
00ChongqingJiansheIndustrialSubtotal113,900,000.
00ChinaCITICChongqingBranch20,000,000.
00SouthwesternEngineryIndustrialChinaMerchantBankJiulongpoBank50,000,000.
00SouthwesternEngineryIndustrialChongqingJiansheSaleCo.
,Ltd.
HuaxiaBankJiulongpoBranch20,000,000.
00ChongqingJiansheIndustrialSubtotal90,000,000.
00HuaxiaBankJiulongpoBranch15,000,000.
00ChongqingJiansheIndustrialChongqingNorthImport&ExportTradeCo.
,Ltd.
HuaxiaBankJiulongpoBranch9,000,000.
00ChongqingJiansheIndustrialSubtotal24,000,000.
00Total287,900,000.
00ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)402)MortgageloanDebtorDebteeAmountofloanCollateralsecurityChinaCITICChongqingBranch20,000,000.
00EquipmentsofChongqingJiansheIndustrialChongqingBankJiulongpoBranch30,000,000.
00RealestateofChongqingBailuIndustryEIBCChongqingBranch70,000,000.
00LandofHuaxiIndustryParkBananDistrictHuaxiaBankJiulongpoBranch36,500,000.
00GuaranteedbyChongqingJiansheIndustrialandguaranteedbyChongqingJiansheMotorcyclewithitsself-ownedequipmentsChongqingJiansheMotorcycleCo.
,Ltd.
BankofCommunicationJiulongpoBranch11,900,000.
00ChongqingJiansheMotorcycleguaranteedwithitsself-ownedequipmentsandanotherguarantorisChongqingJiansheIndustrialSubtotal168,400,000.
00ChongqingJiansheVihecle-usedAir-conditionerChongqingMerchantBankJiulongpoBranch3,000,000.
00LandofHuaxiIndustryParkBananDistrictChongqingJiansheSalingCo.
,Ltd.
ChongqingBankJiulongpoBranch15,000,000.
00LandofHuaxiIndustryParkBananDistrictShanghaiJiansheMotorcycleICBCShanghaiFengxianBranch4,000,000.
00Self-ownedrealestateTotal190,400,000.
003)ImpawnloanDebteeAmountofloanCollateralsecurityChongqingJiansheMotorcycleCo.
,Ltd.
ICBCChongqingYangjiapinBranch104,600,000.
00AccountsreceivablesofChongqingJiansheSaleCo.
,Ltd.
ChongqingNorthImport-exportTradeCo.
,Ltd.
BankofChina5,947,490.
15L/CChongqingNorthImport-exportTradeCo.
,Ltd.
HuaxiaBank1,983,870.
00L/CTotal112,531,360.
15Note:Loanfrombanksreceivedfromthetransferringofaccountsreceivablesthatdonotmeettheconditionofterminated-recognitionhasbeenshownasshort-termloan.
18.
Notespayable31Dec,200831Dec,2007Bankacceptance928,630,000.
00919,950,000.
00Total928,630,000.
00919,950,000.
00Note:1)Notespayableon31Dec,2008aforesaidcontains:a.
Bankacceptancefor550,096,110.
10yuanwithaguaranteedepositof550,096,110.
10yuan;b.
Theissueofabankacceptancefor120,533,889.
90yuanisdrawnundertheCompany'sguarantee;theissueofabankacceptancefor66,000,000.
00yuanisdrawnundertheguaranteeofChongqingJiansheIndustrialCo.
,Ltd.
Bankacceptanceattheamountof30,000,000.
00yuanisissuedunderthepledgeofthelandofBananHuaxiIndustrialParkDistrict.
Bankacceptanceattheamountof162,000,000.
00isguaranteedbySouthwesternEngineryIndustrialCompany.
2)Thenotespayabletorelatedpartiesattheendofcurrentyearaccountat1,261,020.
00yuan,duetoChongqingJiansheIndustrialCo.
,Ltd.
,whichistheCompany'scontrollingcompany'ssubsidiaries,accountsfor0.
14%ofthetotalbalanceofnotespayableon31Dec,2008.
19.
AccountspayableItem31Dec,200831Dec,2007AmountProportion(%)AmountProportion(%)AccountspayableWithin1year482,060,911.
8498.
70465,461,389.
7096.
10ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)41Item31Dec,200831Dec,2007AmountProportion(%)AmountProportion(%)1to2years3,915,177.
670.
8018,616,030.
553.
842to3years2,307,067.
600.
47287,380.
030.
06Over3years116,750.
050.
03--Total488,399,907.
16100.
00484,364,800.
28100.
00AdvancesreceiptsWithin1year70,959,666.
2398.
8260,681,743.
3598.
811to2years108,789.
120.
15725,631.
981.
182to3years741,084.
181.
036,696.
000.
01Total71,809,539.
53100.
0061,414,071.
33100.
00OtheraccountspayableWithin1year26,931,591.
8391.
2438,823,329.
8995.
491to2years228,847.
260.
78167,370.
780.
412to3years692,915.
322.
351,005,092.
572.
47Over3years1,663,321.
865.
64660,029.
291.
63Total29,516,676.
27100.
0040,655,822.
53100.
00Note:1)Mostofun-paidaccountspayableoveroneyeararepurchasingpaymentsforlargeequipmentsimported.
Theseequipmentshadnotbeenpaidbecausetheyhadnotbeeninstalledanddebuggedyet.
2)Biggishadvancesreceiptsduefromdealersonthebalancesheetdateareasfollows:AmountAnhuiJiansheYamahaMotorcycleCo.
,Ltd.
9,699,192.
86HaerbinDachangMotorcycleSaleCo.
,Ltd.
8,308,231.
37KunminChengxiangShangmaoCo.
,Ltd.
1,690,731.
00GeneralCompanyofChengduWanyouEconomyTechniqueDevelop1,213,695.
00ChangchunTianyiMotorcycleSaleCo.
,Ltd.
961,793.
35ChangchunZhanjiangMotorcycleSaleCo.
,Ltd.
920,284.
16ShenyangDenuoMotorcycleSaleCo.
,Ltd.
762,155.
00ChangzhouShunjianMachineryMechanical&ElectronicSaleCo.
,Ltd.
705,780.
00ZhengzhouTianruiShangmaoCo.
,Ltd.
694,107.
11ShanxiJianhuiGongmaoCo.
,Ltd.
666,003.
91Total25,621,973.
763)Accountspayableduetorelatedpartiesincludedintheaforesaidaccountspayableon31Dec,2008areasfollows:31Dec,200831Dec,2007Duetoshareholdersanditssubsidiaries21,876,540.
94-Duetoassociates&jointventure15,541,959.
288,784,710.
31Duetootherrelatesparties4,120,358.
198,919,913.
46Total41,538,858.
4117,704,623.
77Percentagetoaccountspayableon31Dec,20088.
51%3.
66%4)Otheraccountspayableduetorelatedpartiesincludedintheaforesaidaccountspayableon31Dec,2008areasfollows:31Dec,200831Dec,2007Duetoshareholdersanditssubsidiaries10,136,614.
196,247,298.
79Duetoassociates&jointventure-14,004,578.
20Duetootherrelatesparties41,070.
804,697,650.
61Total10,177,684.
9924,949,527.
60ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)42ProportiontoOtheraccountspayableon31Dec,200834.
48%61.
37%20.
Employeecompensationpayable31Dec,2007AdditionSubtraction31Dec,2008Salary3,189,199.
26104,078,845.
22104,956,358.
342,311,686.
14Welfare-3,861,347.
533,861,347.
53-Laborfund-1,463,672.
651,474,222.
65-10,550.
00Educationfund-422,099.
87422,099.
87-Socialinsurancepremium-24,364,330.
2924,235,789.
78128,540.
51Housingaccumulationfund-5,480,939.
805,235,727.
80245,212.
00Others-3,650,541.
573,650,591.
57-50.
00Total3,189,199.
26143,321,776.
93143,836,137.
542,674,838.
6521.
TaxPayable31Dec,200831Dec,2007Value-addedtax-5,420,774.
66-10,701,070.
12Businesstax110,571.
43168,743.
78Consumptiontax140,833,283.
65140,114,410.
37Citymaintenanceandconstructiontax25,646.
9715,069.
86Educationadditionalexpenses-22,873.
97Corporateincometax-12,292,552.
33-12,292,552.
33Othertaxes10,576.
611,378,542.
71Total123,266,751.
67118,706,018.
24Note:TheCompany'srelocatingcompensationafterdeductingresettingorimprovingexpensesoffixedassets,technicalreconstructionexpenseisdispensedwithcorporateincometax,inaccordancewithStateTaxDocument[2009]NO.
118,,issuedbyGeneralStateTaxOffice>,22.
Non-currentliabilitiesduewithinoneyear31Dec,200831Dec,2007Guaranteeloan-60,000,000.
00Total-60,000,000.
00Note:Short-termloanduewithinoneyearhadbeenimbursedbeforethebalancesheetdate.
23.
Specialaccountspayables31Dec,2007AdditionSubtraction31Dec,20081.
Compensationforrelocation-526,286,243.
00-526,286,243.
00Lossfromrelocation--154,050,512.
17-154,050,512.
17Transferredgainfromrelocation--327,235,730.
83-327,235,730.
832.
SpecialappropriatefundonTechnicalInnovationofChinaEnginery&EquipmentGroupAttestedbytheState4,000,000.
00-4,000,000.
00-3.
TechnicalResearchonthe400KGLevelVehicleProgram375,000.
00487,500.
00-862,500.
004.
SpecialappropriatefundoncorporateTechnicalInnovationfromChongqingS&TCommittee-120,000.
00-120,000.
00Total4,375,000.
00526,893,743.
00485,286,243.
0045,982,500.
00Note:1)TheCompany'sfirsttemporaryshareholdersmeetinghadpassed"TheCompany'sproposalonplanningscheduleofactualizingrelocationandentrustingChongqingJiansheMachineryCo.
,Ltd.
torequisitionlandandbuildbuildings".
TheCompanyshouldbecontributedrelocationcompensationatanamountofChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)43526,286,243.
00yuan,inaccordancewith"Agreementonrelocationcompensationdistribution".
Attheendofthereportingperiod,theCompanyhadreceived342,200,000.
00yuanofrelocationcompensationfromChongqingJiansheIndustrialCo.
,Ltd.
Theresidualrelocationcompensationamountat184,086,243.
00yuanhadbeenpaidbyChongqingJiansheIndustrialbeforethesigningdateofthisreport.
2)Attheendofthereportingperiod,theCompanyhadidentified154,050,000.
00yuanoflossonrelocationaccordingtotheCompany'srelocationposition.
Thislossisclassifiedasfollows:(expressedattenthousandyuan)ParentcompanySalecompanyVehicle-usedAir-conditionerCompanyTotalLossfromfixedassets6,756-3717,127Lossfrompartsdisposal2,818-1943,012Expensesonequipmentdebug1183--1183Shut-downloss:laborcost2,142--2,142Shut-downloss:depreciation804--804Expenseonequipmentrepair295--295Lossondisposalofconstructioninprogress132--132AmortizationofNewlandfromMay2004toDec2007-173173Otherexpenseonrelocation4512480537Total14,17512121815,4053)Asat31Dec,2008,relocationprojectoftheCompany'sfoundry,research&developcentre,ChongqingJiansheSaleCo.
,Ltd.
andChongqingNorthJiansheImport-exportTradeCo.
,Ltd.
hadnotbeenfinished.
TheCompanyhadestimated45,000,000.
00yuanoflossontheserelocationprojectsthatarelikelyhappenedinthefuture.
25.
Sharecapital31Dec,200731Dec,2008StockPercentageNumberofstockPercentage1.
Negotiablestocks----CorporatestocksinChina357,500,000.
0074.
87%357,500,000.
0074.
87%2.
Nigotiablestocks----ForeignholdstockslistedinChina120,000,000.
0025.
13%120,000,000.
0025.
13%3.
TotalStock477,500,000.
00100%477,500,000.
00100%25.
Capitalreserves31Dec,2007AdditionSubtraction31Dec,2008Overflowinsharecapital344,407,741.
07--344,407,741.
07Others245,772,776.
52--245,772,776.
52Total590,180,517.
59--590,180,517.
5927.
Surplusreserves31Dec,2007IncreaseDecrease31Dec,2008ReasonofchangeStatutorysurplus125,686,000.
00--125,686,000.
00-Total125,686,000.
00--125,686,000.
00-Note:SincetheCompanyremainsun-deficitfrompreviousyear,nostatutorysurplusisraisedincurrentyear.
27.
Retainedearnings31Dec,200831Dec,2007Openningbalanceofretainedearnings-911,267,241.
24-923,325,443.
85ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)4431Dec,200831Dec,2007Increaseduringcurrentyear157,322,673.
3412,058,202.
61-Netprofitbelongtoshareholdersofparentcompanyincurrentyear157,322,673.
3412,058,202.
61Decreaseduringcurrentyear---Appropriationofstatutorysurplusreserves---Appropriationofcommonshare'sdividend--Closingbalanceofretainedearnings-753,944,567.
90-911,267,241.
24-Dividendsoncash--28.
Operatingrevenueandoperatingcost1)Operationalrevenue,operationalcost20082007Operatingrevenue:-Operatingrevenue2,569,933,085.
942,607,093,147.
61-OtherOperatingrevenue20,484,812.
9631,665,091.
00Total2,590,417,898.
902,638,758,238.
61Operatingcost:-Operatingcost2,433,826,242.
782,335,641,699.
39-OtherOperatingcost6,107,683.
5010,036,667.
69Total2,439,933,926.
282,345,678,367.
082)Operatingrevenueandcostlistedonoperatingsegments:Operatingrevenue20082007Motorcycleandparts2,239,896,697.
812,315,193,722.
37Vehicle-usedair-conditioner330,036,388.
13291,899,425.
24Total2,569,933,085.
942,607,093,147.
61Operatingcost20082007Motorcycleandparts2,171,120,451.
902,114,260,183.
62Vehicle-usedair-conditioner262,705,790.
88221,381,515.
77Total2,433,826,242.
782,335,641,699.
39Note:Totalrevenuefromtopfiveclientsisasfollows:(expressedintenthousandyuan)20082007AmountProportionAmountProportionTotalrevenuefromtopfiveclients55,696.
5621.
67%70,584.
9427.
07%Saleslistedoneachregionin2008:ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)45OperatingrevenueOperatingcostGrossprofitNorthernChina191,236,403.
04195,267,683.
97-4,031,280.
93EasternChina325,507,883.
70292,996,340.
4532,511,543.
25Central-southernChina167,311,637.
13152,440,207.
6314,871,429.
50SouthwestChina1,089,464,560.
431,053,376,707.
3436,087,853.
09NortheastChina137,731,851.
58119,241,714.
1818,490,137.
40NorthwestChina153,556,650.
20130,242,365.
4823,314,284.
72Subtotalindomesticmarket2,064,808,986.
081,943,565,019.
04121,243,967.
04Asia193,618,076.
71189,426,809.
634,191,267.
08EuropeandOceania71,656,033.
6969,371,395.
972,284,637.
72America51,512,079.
2249,430,657.
722,081,421.
50Africa188,337,910.
24182,032,360.
416,305,549.
83Subtotalofoverseamarket505,124,099.
86490,261,223.
7314,862,876.
13Total2,569,933,085.
942,433,826,242.
77136,106,843.
17Saleslistedoneachregionin2007:OperatingrevenueOperatingcostGrossprofitNorthernChina216,852,470.
33194,705,496.
5522,146,973.
78EasternChina261,145,015.
49235,298,593.
4425,846,422.
05Central-southernChina296,631,241.
98265,188,912.
6731,442,329.
31SouthwestChina1,023,749,801.
38894,465,802.
92129,283,998.
46NortheastChina136,599,914.
44122,256,625.
6414,343,288.
80NorthwestChina96,861,607.
9485,586,818.
6411,274,789.
30Subtotalindomesticmarket2,031,840,051.
561,797,502,249.
86234,337,801.
70Asia232,432,164.
92216,361,287.
8216,070,877.
10EuropeandOceania50,609,950.
3047,010,490.
953,599,459.
35America78,500,097.
8072,873,514.
995,626,582.
81Africa213,710,883.
03201,894,155.
7711,816,727.
26Subtotalofexport575,253,096.
05538,139,449.
5337,113,646.
52Total2,607,093,147.
612,335,641,699.
39271,451,448.
22Grossprofitratiofrommotorcycledecreased5.
12%thisyearismainlybecauseofthematerialcostincreasethisyear,leadingtothedecreaseofprofitfromexport.
3)Otheroperatingrevenueandcostclassifiedonoperatingsegmentareasfollows:20082007Otheroperatingrevenue:Leaseoffixedassets12,768,703.
9414,750,000.
00Saleofmaterial4,657,267.
2814,915,091.
00Userightoftrademark2,400,000.
002,000,000.
00Others658,841.
74-Subtotal20,484,812.
9631,665,091.
00ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)4620082007Otheroperatingrevenue:Otheroperatingcost:Leaseoffixedassets3,852,982.
287,037,657.
99Saleofmaterial590,099.
072,899,009.
70Userightoftrademark-100,000.
00Others1,664,602.
15-Subtotal6,107,683.
5010,036,667.
69Profitonotheroperation14,377,129.
4621,628,423.
3129.
Businesstaxandsurcharges20082007Citymaintenanceandconstructiontax874,795.
48799,363.
64Educationadditionalexpenses12,411.
702,982.
16Consumptiontax34,126,530.
4434,391,588.
79Total35,013,737.
6235,193,934.
5930.
Financialexpense20082007Interestexpense95,396,235.
8982,840,392.
61Less:interestincome23,162,110.
6321,943,077.
24Exchangegainorloss8,420,745.
069,877,735.
61Others-23,610,998.
61-24,622,692.
74Total57,043,871.
7146,152,358.
24Note:1)Interestexpenseincreased15.
16%incurrentyear.
Themainreasonisthatthebanks'lendingrateincreased;2)Otherfinancialexpenseismainlyconsistsofcashdiscountfromsuppliers.
31.
Impairmentlossonassets20082007Baddebtloss10,399,158.
731,201,073.
32Lossduetothedeclineinthemarketpriceofinventory19,141,549.
041,283,613.
47Total29,540,707.
772,484,686.
7932.
Investmentincome20082007Amountadjustedfromtheowner'sequitynetchangesofcompaniesbeinginvestedtheyearendedNote(1)58,971,089.
8258,226,502.
58AmortizationofdifferencesfromequityinvestmentNote(2)-1,006,809.
66-1,006,809.
66ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)4720082007Incomefromequityinvestmentstransfer-3.
00Total57,964,280.
1657,219,695.
92Note:1)TheCompany'sjointventure,ChongqingJiansheYamahaMotorcycleCo.
,Ltd.
,hadfinisheditsrelocationprojectandthusrecognizedthegainfromrelocationatamountof116,371,889.
67yuan.
2)Companyfailedtoemployapropermethodtoamortizethebalanceof3,264,000.
00yuanbetweenthefairvalueofidentifiableassets&debitsofShanghaiJiansheMotorcycleCo.
,Ltd.
,subsidiaryoftheCompanyconsolidatedunderdifferentcontrolsandtheirbookvalueafterdeductingtheamortizationonthedatewheninitiallyimplementingAccountingStandardsforBusinessEnterprises.
Thus,thisbalancehasbeenamortizedaveragelywithintheresidualamortizationlifeofthedifferencefromoriginalequityinvestmentsaccordingto.
Thebalancethathadnotbeenamortizedisshownin"Othernon-currencyassets"onconsolidatedbalancesheet.
Theamortizationin2008is408,000.
00yuan.
The3,592,857.
98yuandebitbalanceofequityinvestmenttoChongqingPingshanTaikaiCarburetorCo.
,Ltd.
,jointventureoftheCompany,onthedatewheninitiallyimplementing,hasbeentransferredtoequityinvestmentandrecognizedastheinitialcostofequityinvestment,accordingto.
Meanwhile,accordingto,thedebitbalanceoflong-termequityinvestmenttojointventuremustbeamortizedwithintheoriginalresiduallife.
Amortizationin2008is598,809.
66yuan.
33.
Non-operatingincome20082007Netincomefromdisposaloffixedassets14,300,941.
464,769,525.
87Netamercementincome40,142.
502,050.
00Governmentgrants2,218,540.
00742,860.
00Gainfromrelocationproject327,235,730.
83-Others10,853,097.
044,600,745.
47Total354,648,451.
8310,115,181.
34Note:1)FormoreinformationofGainfromrelocationproject,referto"NoteⅧ.
23.
Specialaccountspayables";2)NetincomefromdisposaloffixedassetsincurrentyearincreasedismainlybecausetheCompanysoldapasselofpartsandequipmentsforproductiontosupportingmanufacturersinordertoreducethecostofmotorcycleparts;3)Governmentgrants:AmountResourceApprovaldocument2007Fundforoptimizingstructureofengine&electronicalproductsandhigh-techproductsimport-export600,000.
00PRCFinanceDepartmentCaiQi[2008]NO.
3672008thesecondpasseloffundonindustrydevelopment200,000.
00ChongqingFinanceOfficeYuCaiQiNo.
5092006thesecondpasselofsupportingfundonChongqingcorporations'technicaltransformandresearch&developmentprogram56,000.
00ChongqingFinanceOfficeYuCaiQiNo.
4662008thefirstpasselofsupportingfundonChongqingcorporations'technicaltransformandresearch&developmentprogram50,800.
00ChongqingFinanceOfficeYuCaiQiNo.
3222008thefourthpasselofsupportingfundonChongqingcorporations'technicaltransformandresearch&developmentprogram121,700.
00ChongqingFinanceOfficeYuCaiQiNo.
6502008overseamarketdevelopingsupportingfund193,000.
00ChongqingFinanceOfficeYuCaiQiNo.
648Grantforpatent77,440.
00ChongqingIntellectualPropertyOfficeRegulationtoChongqinggrantforpatentChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)48ChongqingScientificandtechnologicalsupportingplan250,000.
00ChongqingScientificandtechnologicalsupportingpolicy2007AA6006-62008overseatradetechnicaltransformgrant488,300.
00ChongqingFinanceOfficeYuCaiQiNo.
322、466、5812008foreigntradedevelopmentfund181,300.
00ChongqingFinanceOfficeYuWaiJingMaoFa[2008]No.
334Total2,218,540.
004)Othernon-operatingincome:a.
theCompanyinvestedwithpracticalityassetsandpatenttoestablishanewcompany,ChongqingTongshengJiansheIndustrialCo.
,Ltd.
,togetherwithananotherinvestor,ChongqingTongshengIndustrial(group)Co.
,Ltd.
ThebookvalueofpracticalityassetsandpatentinvestedbytheCompanyis1,253,776.
86Yuan.
Theinitialinvestmentcostofthislong-termequityinvestmenthadbeenvalidatedbyreport"ChongjunAccountingFirmReport(2009)NO.
0092"issuedbyChongqingJunjianAccountingFirmatamountof3,000,000.
00Yuan.
Thedifferencebetweenfairvalueofthelong-termequityinvestmentandbookvalueofassetsinvestedisidentifiedasgainsfromnon-currencytransactions.
b.
theCompanytransferred2,829,727.
04yuanofliabilitydispensewithpayingand4,000,000.
00yuanofspecialfundfromChinaEnginery&EquipmentGoupforstatecertifiedcorporations'abilityoftechnicalinnovation.
34.
Non-operatingexpense20082007Netlossfromdisposaloffixedassets1,960,036.
171,446,804.
92Donationoutlay376,870.
955,000.
00Amercementoutlay15,000.
0075,359.
48Lawsuitcompensation174,016.
293,910,000.
00Others200,873.
55206,359.
20Total2,726,796.
965,643,523.
6035.
Incometaxexpense20082007Incometaxpayableofcurrentyear68,720.
46-Plus:Deferredtaxliabilitiestheyearended-2,774,995.
97Less:Deferredtaxliabilitiestheyearbegan2,774,995.
9795,630.
76Less:Deferredtaxassetstheyearended6,153,962.
292,075,008.
08Plus:Deferredtaxassetstheyearbegan2,075,008.
082,581,630.
66Incometaxexpenseofcurrentyear-6,785,229.
723,185,987.
7936.
Cashreceivedandpaidrelatingtootheroperating,investmentandfinancingactivitiesSignificantcashflowsarelistedasfollows:20082007OthercashpaymentsrelatingtooperatingactivitiesTransportingfees45,760,318.
9043,846,344.
03Advertisingexpense32,431,884.
0330,595,121.
61Expenseonsales-service15,723,040.
248,289,015.
76OthercashreceiptsrelatingtooperatingactivitiesInterestincome17,053,485.
3814,978,282.
91OthercashreceiptsrelatingtoinvestmentactivitiesCompensationforrelocationproject342,200,000.
00-ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)4920082007FundappropriatedbyChinaEnginery&EquipmentGroupfortechnicalinnovation-592,860.
00OthercashpaymentsrelatingtofinancingactivitiesPayDuedbanknoteforfinancing1,823,174,910.
802,004,154,350.
71Increasingamountofdepositsforbanknote-267,288,760.
75OthercashreceiptsrelatingtofinancingactivitiesDiscountingmoneyfromfinancingbanknote1,749,049,348.
912,335,167,147.
84ReceiptsformdepositsforPostalOrder171,436,915.
85-Cashflowsfromoperatingactivitiescalculatedbyadjustingthenetprofit:20082007Netprofit157,402,145.
5611,579,917.
78Plus:impairmentprovisionforassets29,540,707.
772,484,686.
79depreciationofandfixedassets56,670,718.
7955,912,482.
37amortizationofintangibleassets2,997,608.
1872,503.
40amortizationoflong-termdeferredexpenses3,894,027.
331,479,076.
59disposaloffixedassets,intangibleassetsandothers-12,340,905.
29-3,322,720.
95financialexpense95,396,235.
8968,095,435.
48lossfrominvestments-57,964,280.
16-57,219,695.
92decreaseindeferredtaxassets-4,078,954.
21506,622.
58increaseofdeferredtaxliabilities-2,774,995.
972,679,365.
21decreaseininventory85,038,097.
44-56,065,534.
19decreaseinrecurrentreceivables-27,395,872.
1134,864,263.
90increaseinrecurrentpayables5,829,609.
6642,618,948.
36others-327,235,730.
83-Netcashflowfromoperatingactivities4,978,412.
05103,685,351.
40Note:"others"refertothecompensationfortheCompany'srelocationproject.
Changeofcashandcashequivalents:20082007Cashbalancetheyearended99,257,459.
02227,280,817.
63Less:Balanceofcashatthebeginningoftheyear227,280,817.
63332,366,796.
70Netincreaseofcashandcashequivalents-128,023,358.
61-105,085,979.
07Note:ReasonoftheinconsistentbetweenbalanceofcashandbalanceofcashandcashequivalentsonfinancialstatementisbecauseCompanydidn'tcounttheguarantydepositsandcreditdepositsascashandcashequivalents.
Relatedinformationofcashandcashequivalents20082007CashIncluding:cashonhand100,523.
18239,728.
90Bankdepositsthatcanbeusedforpaymentwhenevernecessary99,156,935.
84227,041,088.
73Othermonetarycapitalthatcanbeusedforpaymentwhenevernecessary--Closingbalanceof'Cashandcashequivalents'99,257,459.
02227,280,817.
63ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)50Ⅸ.
Notetotheitemsonparentcompany'sfinancialstatements.
1.
AccountsReceivable1)AccountsReceivable20082007AgeAmountProportion(%)ProvisionfordoubtfuldebtsAmountProportion(%)ProvisionfordoubtfuldebtsWithinoneyear12,003,597.
7788.
27600,179.
8928,892,824.
3294.
701,444,641.
221to2years---59,601.
190.
201,950.
65Over3years1,594,979.
7011.
731,594,979.
701,554,885.
005.
101,194,382.
58Total13,598,577.
47100.
002,195,159.
5930,507,310.
51100.
002,640,974.
45Note:Noaccountsreceivableisduefromashareholderwhoholds5%ormoreofthevotingsharesofparentcompany.
2)Otherreceivables20082007AgeAmountProportion(%)ProvisionfordoubtfuldebtsAmountProportion(%)ProvisionfordoubtfuldebtsWithinoneyear330,440,936.
0498.
709,632,357.
78182,555,296.
2797.
08199,310.
081to2years2to3years3,013,664.
001.
603,013,664.
00Over3years4,357,898.
741.
304,357,898.
742,477,335.
851.
322,471,611.
63Total334,798,834.
78100.
0013,990,256.
52188,046,296.
12100.
005,684,585.
71Note:Accountsreceivableduefromtheshareholderwhoholds5%ormoreofthevotingsharesofparentcompany,ChongqingJiansheIndustrialCo.
,Ltd.
,atamountof184,086,243.
00yuan,iscompensationfortheCompany'srelocationproject.
Formoreinformationaboutrelocationproject,referto"Ⅷ.
23.
Specialaccountspayables".
2.
Long-termequityinvestment20082007BookbalanceProvisionforimpairmentBookvalueBookbalanceProvisionforimpairmentBookvalueJointventure582,233,424.
48582,233,424.
48523,203,541.
37523,203,541.
37Associate2,360,769.
712,360,769.
71Subsidiary151,417,442.
921,140,915.
04150,276,527.
88151,825,442.
921,140,915.
04150,684,527.
88Total736,011,637.
111,140,915.
04734,870,722.
07675,028,984.
291,140,915.
04673,888,069.
25Moredetailsareasfollows:ShareproportionInitialamount31Dec,2007AdditionSubtraction31Dec,2008CostmethodChongqingJiansheMotorcycleSaleAgency45.
00%225,000.
00--ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)51ShareproportionInitialamount31Dec,2007AdditionSubtraction31Dec,2008225,000.
00225,000.
00ChongqingJiansheSale100.
00%12,000,000.
0012,000,000.
00--12,000,000.
00ChongqingNorthJiansheIm-ExportTrade95.
14%57,443,527.
8857,443,527.
88--57,443,527.
88ShanghaiJiansheMotorcycle51.
00%8,160,000.
0011,016,000.
00-408,000.
0010,608,000.
00ChongqingJiansheVehicle-usedAir-conditionerCo.
,Ltd.
43.
75%70,000,000.
0070,000,000.
00--70,000,000.
00NingboJiansheMotorcycle51.
00%8,160,000.
001,140,915.
04--1,140,915.
04Subtotal155,988,527.
88151,825,442.
92408,000.
00151,417,442.
92EquitymethodChongqqingPingshanTaikai49.
00%67,316,539.
8771,375,252.
09934,334.
93598,809.
6671,710,777.
36ChongqingJiansheYAMAHA50.
00%154,699,622.
03202,262,762.
5155,224,781.
68-257,487,544.
19ZhuzhouJiansheYamaha50.
00%215,710,320.
08249,565,526.
773,469,576.
16-253,035,102.
93ChongqingTongshengJianshe30.
00%3,000,000.
00-3,000,000.
00639,230.
292,360,769.
71Subtotal440,726,481.
98523,203,541.
3762,628,692.
771,238,039.
95584,594,194.
19Total596,715,009.
86675,028,984.
2962,628,692.
771,646,039.
95736,011,637.
11Impairmentoflong-termequityinvestment31Dec,2007RaisedincurrentyearWritebackincurrentyearOtherdecrease31Dec,2008NingboJiansheMotorcycleManufacturing1,140,915.
04---1,140,915.
04Total4,340,915.
04---4,340,915.
043.
Operatingrevenueandoperatingcost1)Operatingrevenue,operatingcost20082007Operatingrevenue:-Operatingrevenue1,924,751,110.
091,976,279,850.
30-OtherOperatingrevenue626,331,468.
40370,466,986.
97Total2,551,082,578.
492,346,746,837.
27Operatingcost:-Operatingcost2,035,519,765.
591,821,147,740.
84-OtherOperatingcost554,324,658.
05271,514,226.
64Total2,589,844,423.
642,092,661,967.
482)Operatingrevenueandcostlistedonoperatingsegments:Operatingrevenue20082007Motorcycleandparts1,924,751,110.
091,976,279,850.
30Operatingcost20082007Motorcycleandparts2,035,519,765.
591,821,147,740.
84Note:Thereasonthatresultstotheparentcompany'slossthisyearisthattheinternalpricesoldtoparentcompany'sChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)52wholly-ownedsubsidiaries,ChongqingJiansheSaleCo.
,LtdandChongqingNorthJiansheImport-ExportTradeCo.
,Ltd.
hadbeenadjustedbyparentcompany.
3)Otheroperatingrevenueandcostclassifiedonoperatingsegment:20082007Otheroperatingrevenue:Leaseoffixedassets12,723,576.
7714,750,000.
00Saleofmaterial611,408,723.
61344,497,541.
99Saleofscrap-9,219,444.
98Userightoftrademark2,000,000.
002,000,000.
00Others199,168.
02-Subtotal626,331,468.
40370,466,986.
97Otheroperatingcost:Leaseoffixedassets3,852,982.
287,037,657.
99Saleofmaterial548,867,478.
41264,082,606.
03Saleofscrap-293,962.
62Userightoftrademark-100,000.
00Others1,604,197.
36-Subtotal554,324,658.
05271,514,226.
64Profitonotheroperation72,006,810.
3598,952,760.
33Note:TransactiononmaterialsaletoChongqingJingjianAuto-usedAir-conditioningCo.
,Ltd.
,wholly-ownedsubsidiaryofparentCompany,broughtinaprofitof59,664,440.
21yuan.
Upto31Dec,2008,therestillisun-fulfilledinternalprofitof5,900,305.
61yuan.
Thisun-fulfilledprofithasbeenoffsetontheconsolidatedfinancialstatements.
4.
Investmentincome20082007Amountadjustedfromtheowner'sequitynetchangesofcompaniesbeinginvestedtheyearended58,971,818.
0958,175,195.
71Amortizationofdifferencesfromequityinvestment-1,006,809.
66-1,006,809.
66Incomefromequityinvestmentstransfer-2.
00Total57,965,008.
4357,168,388.
055.
Cashflowsfromoperatingactivitiescalculatedbyadjustingthenetprofit:20082007Netprofit120,431,024.
54127,262,753.
19Plus:impairmentprovisionforassets28,198,316.
653,160,147.
28depreciationofandfixedassets38,713,921.
9943,056,165.
79amortizationofintangibleassets724,452.
62-amortizationoflong-termdeferredexpenses3,272,846.
37-ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)5320082007disposaloffixedassets,intangibleassetsandothers-13,177,598.
14-3,325,187.
25financialexpense41,017,576.
9321,305,854.
02lossfrominvestments-57,965,008.
43-57,168,388.
05decreaseindeferredtaxassets-4,078,954.
21506,622.
58increaseofdeferredtaxliabilities-2,774,995.
972,679,365.
21decreaseininventory106,586,953.
08-42,433,375.
23decreaseinrecurrentreceivables70,225,821.
72-51,812,854.
45increaseinrecurrentpayables162,112,551.
5770,060,043.
54others-247,889,051.
36-Netcashflowfromoperatingactivities245,397,857.
36113,291,146.
63Changeofcashandcashequivalents:20082007Cashbalancetheyearended38,850,288.
9189,772,780.
09Less:Balanceofcashatthebeginningoftheyear89,772,780.
09238,429,289.
82Netincreaseofcashandcashequivalents-50,922,491.
18-148,656,509.
73Note:ReasonoftheinconsistentbetweenbalanceofcashandbalanceofcashandcashequivalentsonfinancialstatementsisbecauseCompanydidn'tcountthenotesdepositsandcreditdepositsascashandcashequivalents.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)54Ⅹ.
Relationsofrelatedpartiesandtransaction1.
Relatedparties1)Parentcompanyandultimatelycontrolentity:CompanynamePlaceofregistrationThenatureofbusinessRelationswiththeCompanyRegisteredcapital(tenthousands)ProportionofshareoftheCompanyProportionoftheCompany'svotingrightChinaSouthIndustrialCompanyBeijingStateDefenseControllingshareholder1,264,52171.
13%71.
13%State-ownedAssetsManagingCommitteeofStateDepartmentBeijingUltimatelycontrolentity2)Subsidiaries:Referto"Ⅶ.
ConsolidationandConsolidatedfinancialstatements".
3)Otherrelatedparties:Relatedparties'namesRelationshipChongqingJiansheIndustrialCo.
,Ltd.
(JiansheIndustrial)SubsidiaryofparentSouthwestEnginery&IndustrialCorp.
SubsidiaryofparentChongqingJiansheMachineryCo.
,Ltd.
("JiansheMachinery")SubsidiaryofparentEnginery&EquipmentGroupFinanceCo.
,Ltd.
("Financecompany")SubsidiaryofparentChongqingChanganAutomobileCo.
Ltd.
("ChanganAutomobile")Sub-filialeofparentChongqingFuyedaCo.
,Ltd.
("Fuyeda")Sub-filialeofparentChongqingJiansheGongmaoCo.
,Ltd.
(JiansheGongmao)Sub-filialeofparentChongqingJiansheYamahaMotorcycleCo.
,Ltd.
("ChongqingJianya")JointventureZhuzhouJiansheYamahaMotorcycleCo.
,Ltd.
("ZhuzhouJianYa")JointventureChongqingPingshanTaikaiCarburetorCo.
,Ltd.
("PingshanTaikai")JointventureChongqingTongshengJiansheIndustrialCo.
,Ltd.
(TongshengJianshe)AssociateChongqingJianxingMachineryManufacturingCo.
,Ltd.
("JianxingMachinery")Associateofparent'ssubsidiaryChongqingBailuIndustryCo.
,Ltd.
("BailuIndustry")Sub-filialeofparentChongqingJiansheBuildingProjectCo.
,Ltd.
(BuildingCompany)Sub-filialeofparent2.
Relatedpartiestransaction1)Salesofgoodstorelatedparties:20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)JiansheIndustrial142,288,534.
035.
54155,630,806.
315.
97ChongqingJianya381,127,256.
6914.
83383,858,366.
2114.
72ChanganAutomobile51,833,765.
862.
0255,127,604.
032.
11ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)5520082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)JianxingMachinery9,420,901.
700.
3725,156,348.
480.
96Fuyeda973,448.
160.
04852,449.
940.
03TongshengJianshe8,462,215.
110.
33--Pricingpolicy:Pricesaresettledonfairmarketvaluefortransaction2)Purchasesofgoodsfromrelatedparties:20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)JiansheIndustrial125,435,119.
665.
1174,666,696.
963.
20JianxingMachinery42,924,124.
741.
7562,421,157.
262.
67ChongqingJianya31,594,972.
881.
29114,710,979.
204.
91PingshanTaikai22,785,308.
230.
9320,404,460.
810.
87JiansheGongmao764,251.
890.
031,649,618.
700.
07TongshengJianshe26,567,269.
321.
08--Pricingpolicy:Pricesaresettledonfairmarketvaluefortransaction3)Offeringservice:20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)Fuyeda15,006,776.
7739.
5210,736,699.
5529.
40JiansheIndustrial22,893,912.
8560.
2833,022,320.
5690.
18JianxingMachinery76,499.
620.
2087,270.
11-Pricingpolicy:Pricesaresettledonfairmarketvaluefortransaction4)Acceptingservice20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)Fuyeda15,006,776.
7739.
5210,736,699.
5529.
40JiansheIndustrial22,893,912.
8560.
2833,022,320.
5690.
18JianxingMachinery76,499.
620.
2087,270.
11-Pricingpolicy:Pricesaresettledonfairmarketvaluefortransaction5)Depositedfunds20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)FinanceCompany2,325,327.
620.
3566,790,284.
946.
99Pricingpolicy:Settlementsareclearedonmarketdepositratesfrombankatthesettlingtime6)Lease20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)56JiansheIndustrial8,288,000.
0064.
9114,720,000.
00100ChongqingJianya2,354,081.
8718.
44--Pricingpolicy:Pricesaredeterminedundertheagreementsbetweentwosides.
7)Fixedassetstransfer20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)JiansheIndustrial--121,453.
730.
66Pricingpolicy:Pricesaredeterminedundertheagreementsbetweentwosides.
8)Salesofassets20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)JianxingMachinery1,395,812.
896.
78--9)GuarantyUpto31Dec,2008:a.
JiansheIndustrialguarantied216,300,000.
00yuanofshort-termloansand50,000,000.
00yuanofbankacceptancefortheCompanyanditssubsidiaries;b.
SouthwestEngineryIndustrialCo.
,Ltd.
guarantied147,000,000.
00yuanofshort-termloansand162,000,000.
00yuanofbankacceptancefortheCompanyanditssubsidiaries;c.
JiansheMachineryguarantied88,000,000.
00yuanofshort-termloansand30,000,000.
00yuanofbankacceptancefortheCompanyanditssubsidiaries;d.
BailuIndustryguarantied30,000,000.
00yuanofshort-termloanforCompanyanditssubsidiaries.
10)DistributionofcompensationonrelocationIn2008,TheCompany'sfirsttemporaryshareholdersmeetinghadpassed"TheCompany'sproposalonplanningscheduleofactualizingrelocationandentrustingChongqingJiansheMachineryCo.
,Ltd.
torequisitionlandandbuildbuildings".
TheCompanyshouldbecontributedrelocationcompensationatamountof526,286,243.
00yuan,inaccordancewith"Agreementonrelocationcompensationdistribution".
Attheendofthereportingperiod,theCompanyhadreceived342,200,000.
00yuanofrelocationcompensationfromChongqingJiansheIndustrialCo.
,Ltd.
Theresidualrelocationcompensationamountat184,086,243.
00yuanhadbeenpaidbyChongqingJiansheIndustrialbeforethesigningdateofthisreport.
11)ConstructionentrustTheCompanyentrustedChongqingJiansheMachineryCo.
,LtdtobuilditsprojectofMotorcycleRelocationTechnicalAmeliorationandprojectofRelocationofVehicle-usedAir-conditionerCo.
,Ltd.
,accordingtotheagreement,signedbybothsideson29July,2008.
TheresourceofthefundfortherelocationprojectistheCompany'sself-ownedfundandcompensationforrelocationlossoftheCompanyfromChongqingJiansheIndustrialCo.
,Ltd.
Thetrustee,ChongqingJiansheMachineryCo.
,Ltd,preparedandreportfundplantothetrustorforapprovalaccordingtobudgetaryinvestmentoneachproject,schedulecontrolandconstructionplanofeachproject.
TheCompanybetimespaystheprojectfundtoappropriativebankaccountoftrusteeaccordingtotheannualscheduleonfundapprovedbeforesothattoinsuretherelocationprojectgoonsmoothly.
TheChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)57Companywillentrustanagencytoauditthefinalaccountwhentheprojectiscompleted.
Thetrustorandtheconstructionside,thetrustee,willdealwiththeprojectsettlementonthebaseofcostaudited.
On31Dec,2008,theCompanyhadpaidChongqingJiansheMachineryCo.
,Ltd.
339,144,116.
48yuanfortheproject.
12)ProjectconstructionTheCompanyhadsignedaprojectconstructioncontractwithBuildingCompany.
Thetotalamountofthecontractis22,000,000.
00yuan.
On31Dec,2008,theCompanyhadpaid18,828,200.
00yuantoBuildingCompanyforthisproject.
Thisprojecthadnotbeenfinalaccountedattheendofthisreportingperiod.
3.
Payablesandreceivablesdueorfromrelatedparties20082007AmountProportiontosimilartransaction(%)AmountProportiontosimilartransaction(%)NotesreceivableJianxingMachinery900,000.
001.
06--ChanganAutomobile3,000,000.
003.
52AccountreceivableChanganAutomobile9,938,635.
606.
7117,968,516.
949.
04OtheraccountreceivableJiansheIndustrial184,086,243.
0091.
04Fuyeda72,396.
060.
27ChongqingJianya3,786,855.
931.
87AccountsPayableJiansheMachinery21,168,707.
994.
33JiansheIndustrial707,832.
950.
14JianxingMachinery4,120,358.
190.
848,919,913.
461.
84PingshanTaikai11,809,455.
172.
428,784,710.
311.
81ChongqingJianya954,844.
910.
20TongshengJianshe2,777,659.
200.
57NotespayableJiansheIndustrial1,261,020.
000.
1420,000,000.
002.
17OtheraccountspayableJianxingMachinery4,366,692.
0210.
74Fuyeda3,204,956.
2510.
86575,377.
461.
42ChongqingJianya14,004,578.
2034.
45JiansheIndustrial6,931,657.
9423.
485,671,921.
3313.
95JiansheGongmao41,070.
800.
14330,958.
590.
81ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)58Ⅺ.
ContingenciesOn8Sep,2008,ChongqingYaohuiEngineCo.
,Ltd(hereafterreferredtoas"YaohuiEngine")suedtheCompany'ssubsidiary,ChongqingNorthJiansheImport-ExportTradeCo.
,Ltd(hereafterreferredtoas"NorthJianshe")onbusinesscontractbetweentwosides,claimingpaymentforgoodsattotalamountof13,332,000.
00yuanandrelatedinterestfromNorthJianshe.
TheFifthIntermediatePeople'sCourtofChongqinghadheldthecourtforthislawsuiton9Dec,2008and12Feb,2009.
Finaljudgmentofthislawsuithadnotbeensentencedonthesigningdateofthisreport.
On17Feb,2009,NorthJianshesuedYaohuiEngineonbusinesscontractbetweentwosides,claimingforreimbursementof3,300,000.
00yuanofpaymentforgoodsanditsrelatedinterestfromYaohuiEngine.
ThislawsuithadbeenprocessedbyChongqingJiulongpoPeople'sCourtandhadnotbeenheldacourtuptotheendofthisreportingperiod.
On6August,2008,ChongqingHongtianDistributionCo.
,LtdsuedChongqingWeiranTechniqueDevelopCo.
,LtdandNorthJianshe,claimingforfreightagencyfeeandfreightattotalamountof1,390,000.
00yuan.
Thislawsuithadbeenheldcourton2Dec,2009byWuhanAdmiraltyCourtandhadnotbeensentenceduptotheendofthisreportingperiod.
Ⅻ.
CommitmentsNoCommitmentneedstobedisclosed.
Ⅷ.
EventsafterthebalancesheetdateIn2008,TheCompany'sfirsttemporaryshareholdersmeetinghadpassed"TheCompany'sproposalonplanningscheduleofactualizingrelocationandentrustingChongqingJiansheMachineryCo.
,Ltd.
torequisitionlandandbuildbuildings".
TheCompanyshouldbecontributedrelocationcompensationatamountof526,286,243.
00yuan,inaccordancewith"Agreementonrelocationcompensationdistribution".
Attheendofthereportingperiod,theCompanyhadreceived342,200,000.
00yuanofrelocationcompensationfromChongqingJiansheIndustrialCo.
,Ltd.
Theresidualrelocationcompensationamountat184,086,243.
00yuanhadbeenpaidbyChongqingJiansheIndustrialbeforethesigningdateofthisreport.
ⅪⅤ.
OthersignificantissuesNoothersignificantissueneedstobedisclosed.
ChongqingJiansheMotorcycleCompanyLimitedNotestoFinancialStatement2008(ExpressedinRenminbiYuan)59ChongqingJiansheMotorcycleLtd.
Complementaritytothefinancialstatement.
ReturnratioofnetassetsandearningpershareⅠInaccordancewithNo.
9,issuedbyChinaSecurityRegulationCommittee,returnratioofnetassetsandearningpersharearelistedasfollows:Returnratioofnetassets(%)earningpershare(Renminbiyuan)NetprofitofthereportingperiodFullydilutedweightedaverageBasicearningpershareDilutedearningpershareNetprofitattributabletotheCompany'sordinaryshareholders35.
8043.
610.
3290.
329NetprofitattributabletotheCompany'sordinaryshareholdersafterdeductingnon-recurringprofitandloss-56.
67-69.
03-0.
522-0.
522.
ⅡNon-recurringprofitandlossInaccordancewith,issuedbyChinaSecurityRegulationCommittee,theCompany'snon-recurringprofitandlossislistedasfollows:Amount1.
Netincomefromdisposaloffixedassets12,340,905.
292.
Governmentgrantaccountedintocurrentprofitandloss2,218,540.
003.
Othernon-operatingincomeandexpense10,126,478.
754.
Othernon-recurringprofitandloss385,421,675.
675.
neteffectontheprofitandlossattributabletominorityshareholders27,592.
906.
Effectofthenon-recurringprofitandlossonincometax-3,789,597.
64Total