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Jiancheng International Economic and Technical Cooperation Co., Ltd CONSOLIDATED INTERIM FINANCIAL REPORT HALF-YEAR ENDED 30 JUNE 2015
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Jiancheng International Economic and Technical Cooperation Co., Ltd
建诚国际经济技术合作有限公司
Contents
Page
Director’s Report董事报告 1
Auditor’s Independence Declaration审计师独立性申明 3
Consolidated Statement of Comprehensive Income合并损益表 4
Consolidated Statement of Financial Position 合并资产负债表 5
Consolidated Statement of Changes in Equity 合并所有者权益变动表 6
Consolidated Statement of Cash Flows 合并现金流量表 7
Director’s Declaration董事申明 14
Independent Auditor’s Review Report 独立审计师审阅报告 15
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Jiancheng International Economic and Technical Cooperation Co., Ltd
建诚国际经济技术合作有限公司
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Director’s Report董事报告
Your Director submits the financial report of the Group for the half-year ended 30 June 2015.
Director 董事
The name of director who held office during or since the end of the half year is: Mr Yonghong Tang, Director
Review of operations 业务回顾
The consolidated profit of the Group for the financial half-year after providing for income tax amounted to RMB 14,909,543 (30 Jun 2014: RMB 13,890,948). The subsidiary, Ma’anshan Jiancheng Occupational Training School is a not for profit entity and its constitution prohibits distributions to its Sponsor, accordingly the contribution to the Group’s results for 30 June 2015 (RMB 17,074) is not available for distribution to the members of the Company. The first half-year business performance of 2015 is described as below: The Group’s business has been growing continuously. The revenue for the first half of 2015 is RMB 116,875,816, showing a 35% growth compared with the revenue for the half-year ended 2014. At the beginning of 2015, the Group incurred IPO expenditures of RMB 1,294,053, which will affect the net profit of the period. Currently, the Group is in the progress of 15 project contracts in five countries, i.e., Algeria, Bangladesh, China, Kuwait and Uzbekistan. The Group's business growth comes from the long-term collaborations with its strategic partners, namely China Machinery Industry Construction (SINOCONST), China Railway Construction (CRCEG), and China Metallurgical Construction (MCC). An exciting progress in this half-year is that the Group started its cooperation with China State Construction Engineering Corporation (CSCEC), one of the largest construction companies in the world, in Algeria. 4 more ENR top contractors are in the list of potential partners for the second half year. The increased long list of prestigious partners sets a solid base for the sustainable growth of the Group, placing JCI Group in the very frontier to follow China's national strategy of “One Belt & One Road” and “Overseas Expansion” promoted by Chinese government in the mid to long term.
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Auditor’s Independence Declaration
The lead auditor’s independence declaration is set out on page 3 for the half-year ended 30 June 2015. This report is signed in accordance with a resolution of the Director _____________________ Mr Yonghong Tang Dated 14 September 2015
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Auditor’s Independence Declaration审计师独
立性申明
As lead auditor for the review of Jiancheng International Economic and Technical Cooperation Co., Ltd for the half-year ended 30 June 2015, I declare that to the best of my knowledge and belief, there have been no contraventions of any applicable code of professional conduct in relation to the review.
Jim Gouskos Director Moore Stephens Assurance Adelaide Pty Ltd
Dated 14 September 2015 F
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Consolidated Statement of Comprehensive Income 合并损益表
For the half-year ended 30 June 2015
Note Consolidated Group
Half-year Ended
30 June 2015 Half-year Ended
30 June 2014 RMB RMB
Revenue 营业收入 2 116,875,816 86,812,181
Cost of sales 营业成本 (91,608,773) (69,241,304)
Gross profit 营业利润 25,267,043 17,570,877
Other income 其他收入 2 512,477 4,569,991
Administration expenses 管理费用 (4,965,487) (2,897,092)
Finance costs财务费用 (932,182) (722,512)
Profit before income tax 利润总额 19,881,851 18,521,264
Income tax expense 所得税 (4,972,308) (4,630,316)
Profit for the half year 净利润 14,909,543 13,890,948
Other comprehensive income 其他收益 - -
Total comprehensive income for the half year全面收益 14,909,543 13,890,948
Total comprehensive income attributable to:
Members of the parent entity (the Company) 14,892,469 13,357,411
Ma’anshan Jiancheng Occupational Training School
17,074 533,537
Total comprehensive income for the half year全面收益 14,909,543 13,890,948
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Consolidated Statement of Financial Position 合并资产负债表
As at 30 June 2015
Note Consolidated Group
30 June 2015 31 December 2014
RMB RMB
Current assets 流动资产
Cash and cash equivalents 货币资金 3 5,059,535 7,343,772
Trade and other receivables 应收及其他应收款 4 137,683,567 148,054,877
Inventory 存货 79,661 45,604
Total current assets 流动资产合计 142,822,763 155,444,253
Non-current assets 非流动资产
Trade and other receivables 应收及其他应收款 4 18,897,690 23,520,279
Property, plant and equipment 固定资产 33,027,673 33,532,420
Intangible assets - Land use rights 土地使用权 1,976,000 1,996,800
Deferred tax assets 递延税务资产 1,269,412 1,297,943
Total non-current assets非流动资产合计 55,170,775 60,347,442
Total assets 资产合计 197,993,538 215,791,695
Current liabilities 流动负债
Trade and other payables 应付及其他应付款 81,354,379 111,472,812
Short-term borrowings 短期借款 17,500,000 15,000,000
Current tax liabilities 未交税金 4,830,435 9,919,702
Total current liabilities 流动负债合计 103,684,814 136,392,514
Total liabilities 负债合计 103,684,814 136,392,514
Net assets 净资产 94,308,724 79,399,181
Equity 所有者权益
Share capital 实收资本 30,180,000 30,180,000
Reserves 公积 7,596,686 6,156,992
Retained earnings 未分配利润 56,532,038 43,062,189
Total equity 所有者权益合计 94,308,724 79,399,181 For
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Consolidated Statement of Changes in Equity 合并所有者权益变动表
For the half-year ended 30 June 2015
Share Capital
实收资本
Statutory Reserve
公积
Training School Profits
Reserve
培训学校公
积
Retained earnings
未分配利润
Consolidated Total
合计
RMB RMB RMB RMB
Balance at 1 January 2014
2014年 1月 1日余额 30,180,000 1,673,473 689,487 14,048,146 46,591,106
Total comprehensive income for the
half year半年度全面收益 - - - 13,890,948 13,890,948
Transferred to Statutory Reserve
转入法定公积 - 1,335,741 - (1,335,741) -
Transferred to Training School
Profits Reserve 转入培训学校
公积
- - 533,537 (533,537) -
Balance at 30 June 2014
2014年 6月 30日余额 30,180,000 3,009,214 1,223,024 26,069,816 60,482,054
Balance at 1 January 2015
2015年 1月 1日余额 30,180,000 4,897,256 1,259,736 43,062,189 79,399,181
Total comprehensive income for the
half year半年度全面收益 - - - 14,909,543 14,909,543
Transferred to Statutory Reserve
转入法定公积 - 1,422,620 - (1,422,620) -
Transferred to Training School
Profits Reserve 转入培训学校
公积
- - 17,074 (17,074) -
Balance at 30 June 2015
2015年 6月 30 日余额 30,180,000 6,319,876 1,276,810 56,532,038 94,308,724
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Consolidated Statement of Cash Flows 合并现金
流量表
For the half-year ended 30 June 2015
Note Consolidated Group
Half-year Ended
30 June 2015 Half-year Ended
30 June 2014 RMB RMB Cash flows from operating activities Receipts from customers 139,575,140 110,368,603 Payments to suppliers and employees (129,294,582) (108,321,564) Interest received 19,142 74,610 Finance costs (932,182) (722,512) Income tax paid (10,133,105) (5,702,257)
Net cash provided by (used in) operating activities (765,587) (4,303,120)
Cash flows from investing activities Purchase of property, plant and equipment (737,840) (7,266,710) Proceed from sale of property plan and equipment - 32,025
Net cash provided by (used in) investing activities (737,840) (7,234,685)
Cash flows from financing activities Proceeds (Repayment) from (of) borrowings 2,500,000 (2,500,000) Cash receipts (Advanced) From (to) related parties (3,280,810) 10,898,708
Net cash provided by (used in) financing activities (780,810) 8,398,708
Net change in cash and cash equivalents held (2,284,237) (3,139,097) Cash and cash equivalents at beginning of period 7,343,772 7,776,412
Cash and cash equivalents at end of period 3 5,059,535 4,637,315
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1 Basis of Preparation
These general purpose financial statements for the interim half-year reporting period ended 30 June 2015
have been prepared in accordance with the requirements of International Financial Reporting Standards,
including IAS 34: Interim Financial Reporting.
This interim financial report is intended to provide users with an update on the latest annual financial
statements of Jiancheng International Economic and Technical Cooperation Co., Ltd. As such it does not
contain information that represents relatively insignificant changes occurring during the half year within the
Group. It is therefore recommended that this financial report be read in conjunction with the annual
financial statements of the Group for the year ended 31 December 2014.
The half-year report does not include full disclosure of the type normally included in an annual financial
report.
The same accounting policies and methods of computation have been followed in this interim financial
report as were applied in the most recent annual financial statements.
2 Revenue for the period The following revenue items are relevant in explaining the financial performance for the interim period:
Consolidated Group
Half-year Ended
30 June 2015 Half-year Ended
30 June 2014 RMB RMB
Operating activities 营业收入
Contracted projects income 工程劳务分包收入 116,344,616 85,224,612
Labour brokerage income 劳务派遣收入 - 556,000
Training school income 培训学校收入 531,200 1,031,569
Total Revenue 收入合计 116,875,816 86,812,181
Non-operating activities 营业外收入
Interest received 利息收入 19,142 74,610
Government subsidies 政府补助 502,000 -
Gain on disposal of fixed assets 固定资产处置收入 - 2,920,336
Tax refund 退税收入 - 1,474,899
Other non-operating income/(expense) 其他营业外收入/支出 (8,665) 100,146
Other Income 其他收入合计 512,477 4,569,991
3 Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand (RMB 1,798,638) and cash at bank (RMB 260,897) and security deposits (RMB 3,000,000) as at 30 June 2015.
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4 Trade and Other Receivables
Note Consolidated Group 30 June 2015 31 December 2014 RMB RMB
Current 短期
Trade receivables 应收账款 95,313,739 92,424,367
Other receivables 其他应收款 9,269,551 29,464,901
Related party receivable 关联方应收款 - 270,000
Contracted project costs 工程施工成本 4(a) 33,100,277 25,895,609
Total current trade and other receivables 短期应收及其他应
收款合计
137,683,567 148,054,877
Non - Current 长期
Trade receivables 应收账款 5,002,966 6,702,596
Provision for impairment 坏账准备金 (5,002,966) (5,002,966)
Other receivables 其他应收款 18,897,690 21,820,649
Total current trade and other receivables 长期应收及其他应
收款合计
18,897,690 23,520,279
a. Contracted project costs
Consolidated Group 30 June 2015 31 December 2014 RMB RMB Contracted project costs incurred 466,614,910 376,098,132 Recognised profits 112,778,318 85,944,065
579,393,228 462,042,197 Progress billings (546,218,269) (435,957,782) Provision for expected loss on contracted project (74,682) (188,806)
Total Contracted Project Costs 33,100,277 25,895,609
As at 30 June 2015, trade receivable included retentions of RMB 24,622,463 (31 December 2014: RMB 22,707,228) related to contracted project in progress.
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建诚国际经济技术合作有限公司
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4 Trade and Other Receivables (Cont)
The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main sources of credit risk to the Group are considered to relate to the classes of assets described as “trade and other receivables”. The following table details the Group’s trade and other receivables exposed to credit risk with ageing analysis.
Past Due and Impaired Past Due but Not Impaired Not Past
Due
Gross
Amount <1 year >1 year 1~2 years 2~3 years >3 years <1 year
RMB RMB RMB
RMB RMB RMB RMB
Consolidated Group
30 June 2015
Trade receivables 100,316,705 - 5,002,966 - - - 95,313,739
Other receivables 28,167,241 - - - - 28,167,241
Contracted project costs
33,100,277 - - - - 33,100,277
Total 161,584,223 - 5,002,966 1,579,450 419,313 - 156,581,257
Consolidated Group
2014
Trade receivables 99,126,963 - 5,002,966 718,214 981,416 - 92,424,367
Other receivables 51,555,550 - - - - 2,922,958 48,632,592
Contracted project costs
25,895,609 - - - - - 25,895,609
Total 176,578,122 - 5,002,966 718,214 981,416 2,922,958 166,952,568
The aging analysis at balance date for trade receivables is on the basis of the date of interim settlement statements rather than when the receivables are expected to be collected which relates to current and non-current classifications. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group. The movement in the provision for impairment of trade receivables is as follows:
Consolidated Group 30 June 2015 31 December 2014 RMB RMB Balance at 1 January 5,002,966 5,002,966 Impairment (write back) incurred for the year - - Write-off incurred for the year - -
Balance at 31 December 5,002,966 5,002,966
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5 Contingent Assets and Liabilities
At the date of signing this report, the Group is not aware of any contingent assets and contingent
liabilities that should be disclosed in accordance with IAS 37.
6 Events Subsequent to the Reporting Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or
may significantly affect the operations of the Group, the results of those operations, or the state of affairs
of the Group in future financial years.
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7 Related Party Transactions
a) The Group’s main related parties are as follows:
(i) Key management personnel:
Mr Yonghong Tang Director/General Manager/Shareholder
(ii) Other related entities:
Mrs Jinxiang Wang Shareholder
a) Amounts payable to related parties:
Consolidated Group
30 June 2015 31 December 2014
RMB RMB
Other payables
(i) Loans from key management personnel:
Beginning of the year 5,368,532 (639,336)
Loan advanced 2,087,722 13,207,868
Loan repayment received (5,368,532) (7,200,000)
End of the year 2,087,722 5,368,532
Related party balances comprise related party loans and no specific terms and conditions have been
attached to the above transactions. No interest is charged to or from related parties.
8 Offsetting Agreements
As at 30 June 2015, Jiancheng International Economic and Technical Cooperation Co., Ltd (the
parent Company) has a payable balance of RMB 8,000,000 to Ma'anshan Zhongji Chengjian
Contruction Engineering Co., Ltd and the Company’s subsidiary Ma'anshan Jiancheng
Occupational Training School has a receivable balance of RMB 8,000,000 from Ma'anshan Zhongji
Chengjian Contruction Engineering Co., Ltd.
The Group entered into a tripartite offsetting agreement on 30 June 2015 which gives the Group a
legally enforceable right to offset its RMB 8,000,000 payable to Ma'anshan Zhongji Chengjian
Contruction Engineering Co., Ltd and Ma'anshan Jiancheng Occupational Training School’s
receivable for the same amount from Ma'anshan Zhongji Chengjian Contruction Engineering Co.,
Ltd as at half-year end 30 June 2015 and the Group intended to settle the liability and receivable in
the future on a ‘net basis’.
On this basis, for the half-year ended 30 June 2015, in accordance with IAS 32, the Group has
offset in its consolidated financial statements its RMB 8,000,000 liability to Ma'anshan Zhongji
Chengjian Contruction Engineering Co., Ltd against Ma'anshan Jiancheng Occupational Training
School’s receivable for the same amount from Ma'anshan Zhongji Chengjian Contruction
Engineering Co., Ltd, thereby recognising a net amount of RMB 0 in respect of the two balances.
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9 Interests in subsidiaries
(a) Information about Principal Subsidiaries
The subsidiaries listed below have share capital consisting solely of share capital injection, which are held directly by the group unless otherwise stated. Each subsidiary’s principal place of business is also its country of incorporation or registration
Name of Subsidiary
Principal Place of Business
Ownership Interest Held by the Group
30 June 2015
31 December 2014
% % Ma'anshan Jiancheng Occupational Training School
Anhui, China 100 100
Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date as the Group’s financial statements.
(b) Significant Restrictions
Ma’anshan Jiancheng Occupational Training School is a not for profit entity and its constitution prohibits realisation and distributions of its assets to its Sponsor, the parent company. The carrying amount of the assets included within the consolidated financial statements to which these restrictions apply is as follows:
30 June 2015 31 December 2014 RMB RMB Current assets Cash and cash equivalents 187,744 135,660 Trade and other receivables 179,686 2,923,249 Inventory 42,333 -
Total current assets 409,763 3,058,909 Non-current assets Property, plant and equipment 891,653 702,666
Total non-current assets 891,653 702,666
Total assets 1,301,416 3,761,575
The subsidiary’s contribution to the Group’s results for 30 June 2015 (RMB 17,074) is not available for distribution to the members of the Company. There are no other significant restrictions over the Group’s ability to settle liabilities of the Group.
10 Parent Information 母公司信息
Jiancheng International Economic and Technical Cooperation Co., Ltd. (“the Company”) is a limited liability company, incorporated and domiciled in the People’s Republic of China (PRC).
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Director’s Declaration董事申明
The director of the Group declares that:
1. The financial statements and notes, as set out on pages 4 to 13 are in accordance with’
a.. Accounting Standard IAS 34: Interim Financial Reporting; and
b. give a true and fair view of the Group’s financial position as at 30 June 2015 and of its
performance for the half-year ended on that date.
2. In the director’s opinion there are reasonable grounds to believe that the Group will be able to pay
its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Director.
________________ Mr Yonghong Tang
Date 14 September 2015
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Moore Stephens Assurance Adelaide Pty Ltd ABN 26 139 429 691
81 Flinders Street, Adelaide, South Australia, 5000
GPO Box 2039, Adelaide, South Australia, 5001
Telephone: +61 8 8205 6200 Facsimile +61 8 8205 6288 Web: www.moorestephens.com.au
Liability limited by a scheme approved under Professional Standards Legislation
The Adelaide Moore Stephens firm is not a partner or agent of any other Moore Stephens Firm
An independent member of Moore Stephens International Limited – members in principal cities throughout the world
Report on Review of Interim Financial Information
To the members of Jiancheng International Economic and Technical Cooperation Co., Ltd
We have reviewed the accompanying consolidated statement of financial position of Jiancheng
International Economic and Technical Cooperation Co., Ltd (the “Group”) as at 30 June 2015,
and the related consolidated statement of comprehensive income, changes in equity and cash
flows for the half-year period then ended, and a summary of the significant accounting policies
and other explanatory notes. Management is responsible for the preparation and fair
presentation of this interim financial information in accordance with International Financial
Reporting Standards. Our responsibility is to express a conclusion on this interim financial
information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements
2410, “Review of Interim Financial Information Performed by the Independent Auditor of the
Entity.” A review of interim financial information consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that might be identified
in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial information does not give a true and fair view of the
consolidated financial position of the entity as at 30 June 2015, and of its consolidated financial
performance and its consolidated cash flows for the half-year period then ended in accordance
with International Financial Reporting Standards.
MOORE STEPHENS ASSURANCE ADELAIDE PTY LTD
JIM GOUSKOS DIRECTOR, ASSURANCE ADELAIDE Dated 14 September 2015
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