英文财务报表附注Notes

1、1. General InformationXXXXorp., Ltd. (“the Compan y ) is a limited liability company incorporated inXXcity of the People s Republic of Chinain The Company has an approved operatingperiod of XXXX years. The registered capital is RMB 100,000,000.The pare nt compa ny of the Compa ny is Qin gdao Haier I

2、 nvestme nt and Developme nt Co.Ltd.The approved scope of bus in ess of the Compa ny and its subsidiaries (together“ theGroup ) includes : Processing with supply material,compensation trading;Importand export product; Household applia nces manu facturi ng, sales, warehous ing, age nt.Registered addr

3、ess is Haier Road, Haier In dustrial Park, Qin gdao city, Shandong Prov in ce, China.Legal Representative is Mianmian Yang.Gover ning structure and orga nizing structure: Practice the system of the directorgen eral resp on sibility un der the leadership of the board of directors (BOD).These financia

4、l statements were authorised for issue by the Company sresponsiblepers ons on XX XX 2015.2. Basis of Preparati onThe finan cialstateme nt was prepared on the basis of susta in ableoperati on.According to the actual transactions and items, it was prepared in accordance withthe enterprises accounting

5、standards issued by Ministry of Finance based on the follow ing sig nifica nt acco unting policy and acco unting estimate.3. Stateme nt of Complia nce with the Acco un ti ng Stan dards for Busin ess En terprisesThe finan cial stateme nts of the Compa ny for the year en ded 31 December 2015 are incom

6、plia nce with the Acco untingStan dards for Busin ess En terprises,and truly andcompletely present the financial position of the Consolidated and the Company as of31 December 2015 and of their financial performance, cash flows and other information for the year then ended.4. Summary of Significant A

7、ccounting Policies and Accounting Estimates(1) Accounting yearThe Companys accounting year starts on 1 January and ends on 31 December.(2) Recording currencyThe recording currency is Renminbi (RMB).(3) Foreign currency translation(a) Foreign currency transactionsForeign currency transactions are tra

8、nslated into RMB using the exchange rates prevailing at the dates of the transactions.At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are

9、recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated

10、in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.(b) Translation of foreign currency finan

11、cial statementsThe asset and liability items in the balance sheets for overseas operations are translated at thespot exchange rates on the balance sheet date. Among the ownersequity items, the items other than “undistributed profits ” are translated at the spot exchange rates of the transaction date

12、s. The income and expense items in the income statements of overseas operations are translated at the spot exchange ratesof the transaction dates. The differences arising from the above translation are presented separately in the owners equit y. The cash flows of overseas operations are translated a

13、t the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.(4) Cash and cash equivalentsCash and cash equivalents comprise cash on hand, deposits that can be readily drawnon demand, and short-term and highl

14、y liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.(5) Financial assetsFinancial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or los

15、s, receivables,available-for-salefinancial assets and held-to-maturityinvestments. Theclassification of financial assets depends on the Group s intention and ability tohold the financial assets.(a)Financial assets at fair value through profit or lossFinancial assets at fair value through profit or l

16、oss include financial assets held for the purpose of selling in the short term. They are presented as financial assets held for trading on the balance sheet.(b)ReceivablesReceivables, including accounts receivable and other receivables, are nonderivative financial assets with fixed or determinable p

17、ayments that are not quoted in an active market (Note 4 (6).(c) Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categoriesat initial recognition. Available-for

18、-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within12 months after the balance sheet date.(d) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed maturity and fixed or det

19、erminable payments that management has the positive intention and ability to hold to maturity. Held-to-maturity investments with maturities over 12 months when the investments were made but are due within 12 months at the balance sheet date are included in the current portion of non-current assets;

20、held-to maturity investments with maturities no more than 12 months when the investments were made are included in other current assets.(e) Recognition and measurementFinancial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of th

21、e financial instrument. In the case of financial assets at fair value through profit or loss, the related transaction costs incurred at the time of acquisition are recognised in profit or loss for the current period. For other financial assets, transaction costs that are attributableto the acquisiti

22、onof the financial assets are included in theirinitiallyrecognised amounts. Financial assets are derecognised when thecontractual rights to receive the cash flows from the financial assets have expired, or all substantial risks and rewards of ownership of the financial assets have been transferred.F

23、inancial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measure

24、d. Receivables and held-to-maturity investments are measured at amortised cost using the effective interest method.Gains or losses arising from change in the fair value of financial assets at fair value through profit or loss are recognised in profit or loss. Interests and cash dividends received du

25、ring the period in which such financial assets are held, as well as the gains or losses arising from disposal of these assets are recognised in profit or loss for the current period.Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in eq

26、uity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the current peri

27、od. Interests on available-for-saleinvestments in debt instrumentscalculated using the effective interest method during the period in which such investments are held and cash dividends declared by the investee on available-for- sale investments in equity instruments are recognised as investment inco

28、me, which is recognised in profit or loss for the period.(f) Impairment of financial assetsThe Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired,

29、an impairment loss is provided for.When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference between the asset s carryingamount and the present value of its estimated future cash flows (excluding future credit losses tha

30、t have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised

31、in profit or loss.If there is objective evidence that an impairment loss on available-for-sale financial assets incurred, the cumulative losses arising from the decline in fair value that had been recognised directly in equity are transferred out from equity and into impairment loss. For an investme

32、nt in debt instrument classified as available-for-saleon which impairment losses have been recognised, if, in asubsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the previously reco

33、gnised impairment loss is reversed into profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.If an impa

34、irment loss incurred on an investment in an equity instrument not quoted in an active market and whose fair value cannot be reliably measured, the amount of loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the c

35、urrent market rate of return for a similar financial asset. The impairment loss is not allowed to be reversed when the value is recovered in a subsequent period.(6) ReceivablesReceivables comprise accounts receivable and other receivables. Accounts receivablearising from sale of goods or rendering o

36、f services are initially recognised at fair value of the contractual payments from the buyers or service recipients.(a) The recognition standard and calculation method of provision for the bad debt of single significant amount:On balance sheet date, the account receivable s with the ending balance g

37、reater than RMB 10,000,000 are classified as the receivables with single significant amount and they should be performed devalue test one by one. If there is objective proof that shows devaluation has been occurred, the depreciation loss should be defined and bad debt provision should be calculated

38、according to the difference between the lower present value of future cash flows and the higher book value of the items.If the depreciation does not occur in the single test, one more tests need to be performed according to different credit asset portfolios with the characteristic of similar credit

39、risks.(b) For the receivables without a single significant amount, however having definiteproofs of its weak collectability, the impairment loss should bedefined and provision for bad debt should be calculated. The re-collectable amount of the receivables can be defined by the actual financial statu

40、s and cash flow of the debt units.(c) For the receivables without a single significant amount or with a single largeamountwhichdo not depreciateaftersingleteststhe proportion ofthecalculation ofprovision for bad debtsfordifferentportfolios duringthereportperiodshould be definedby thecurrentcondition

41、on the basis oftheactual loss probability of the recivables porfolios with same ages.The basis for portfolios definition is listed as followed:Porfolio 1 the receivables from relevant partiesPorfolio 2the receivables of rent insurance andmaintenance reservePorfolio 3the other receivables apart from

42、the abovelistedThe calculati on method for bad debt provisi on accord ing the portfolios is listed as followed:Porfolio 1not calculatePorfolio 2not calculatePorfolio 3agi ng-a nalysis-methodAdopted by agi ng-a nalysis-method in the compa ny the proporti on for the bad debtin terestreceivable,Ion t-t

43、erm receivables)theprovisi onfor bad debt iscalculatedaccord ingto the differe neeof amount between thelower prese ntallowa nee is listed as followed:1Agi ngPerce ntage of acco unt1 1receivables (%)Perce ntage of other1receivables(%)Within 6 mon ths1 0 :06 - 12 mon ths (in cludi ng 6 mon ths)i10| 10

44、12 - 18 mon ths (i ncludi ng 12 mon ths)!30iiii30i-18- 24 mon ths (i ncludi ng 18 mon ths)|50li50i:Moretha n24mon ths (in cludi ng-24 mon ths)100100(d) For other receivables (including the notes receivable,adva nee panyment.value of future cash flow and the book value.(e) For the receivables from th

45、e gover nment or releva nt parties are not calculatedthe provisi on for bad debt.in cludi ngthe(7) Inven toriesThe inven tories in the compa ny in cludes low-value durables( mmanufacuring facility and instruments, office furniture, IT equipment etc.), low- value con sumables (in cludi ng machi ne of

46、feri ngs, Air material con sumpti on, clothi ng, auto parts etc.) air materials etc.The inventories in the company keep accounting according to the real cost. The use and deliver ing of inven tories adopt the real cost method.The low-value consumables are amortizedaccordingto theone-timeamortization

47、method. The low-value durables amortizedaccordingto thefive-fiveamortizationmethod.The Group adopts the perpetual inventory system.(8) Long-term equity investmentsLong- term equity investments comprise theCompanys long -term equityinvestmentsin its subsid iaries, the Group s long-term equity investm

48、ents inits jointventures and associates, as well as thelong-termequityinvestmentswhere theGroup does not have control, joint control or significant influence over the investees and which are not quoted in an active market and whose fair value cannot be reliably measured.(a) SubsidiariesSubsidiaries

49、are the investees over which the Company is able to exercise control, . having the power to govern their financial and operating policies so as to obtain benefits from their operating activities. The existence and effect of potential voting rights, including that derived from the convertible bonds a

50、nd warrants that are currently convertible or exercisable, is considered in determing whether the Group has control over the investees. Investments in subsidiaries are presented in the Company s financial statements using the cost method, and are adjusted to the equity method when preparing the cons

51、olidated financial statements.For long-term equity investments accounted for using the cost method, cash dividend or profit distribution declared by the investees is recognised as investment income in profit or loss.(b) Joint ventures and associatesJoint ventures are the investees over which the Gro

52、up is able to exercise joint control together with other venturers. Associates are the investees that the Group has significant influence on their financial and operating policies.Investments in joint ventures and associates are accounted for using the equity method. Where the initial investment cos

53、t exceeds the Group s share of the fair value of the investee s identifiable net assets at the time of acquisition, the investment is initially measured at cost. Where the initial investment cost is lessthan the Groups share of the fair value of the investee s identifiable net assets at the time of

54、acquisition, the difference is included in profit or loss forthe current period and the cost of the long-term equity investment is adjusted upwards accordingly.Under the equity method of accounting, the Group recognises the investment incomeaccording to its share of net profit or loss of the investe

55、e. The Group discontinues recognising its share of net losses of an investee after the carryings net investment in the investee areamount of the long-term equity investment together with any long-term intereststhat, in substance, form part of the investorreduced tozero. However, ifthe Group hasoblig

56、ations for additional losses andthe criteriawith respectto recognitionof provisions underthe accountingstandardson contingenciesare satisfied,the Group continuesrecognising theinvestmentlosses and theprovisions. Forchanges in ownersequity of thesinvestee other than those arising from its net profit

57、or loss, the Group records its proportionate share directly into capital surplus, provided that the Group proportion of shareholding in the investee remains unchanged. The carrying amountof the investment is reduced by the Groups share of the profit distribution or cash dividends declared by an inve

58、stee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to the Groups equity interest in the investees, and thenbased on which the investment gain or losses are recognised. For the loss on the intra-group transaction amongst