Guangdong Jadiete Holdings Group Company Limited Interim Report 2020
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED INTERIM REPORT 2020 2020-025 August 2020 1 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Guangdong Jadiete Holdings Group Company Limited (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Chen Hongcheng, the Company’s legal representative, and Chen Jincai, the Company’s Chief Financial Officer (CFO) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete. Except for the following director, all the other directors attended in person the Board meeting for the review of this Report and its summary. Reason for not attending the Proxy entrusted to attend the Name Office title meeting in person meeting Chen Honghai Director For reason of other work Chen Dongwei Pan Xiaochun Independent Director Out on a business trip None Asia Pacific (Group) Accounting Firm (Special General Partnership) issued a qualified opinion with emphasis matter paragraph in the auditor’s report for the Company for 2019 and an adverse opinion in the internal control audit report for the Company for 2019. The Board of Directors and the Supervisory Committee of the Company have provided detailed explanation on related matters and investors are kindly reminded to pay attention to the aforesaid contents. There are some uncertainties in the operating profit of the future. The Company’s existing main business scope covers gold and jewelry and garments e-commerce. The gold and jewelry business division is under great pressure due to the intense competition in the industry and the Company’s small business scale, coupled with the impact of the epidemic. The garments e-commerce business division has not produced any profit since its establishment due to restrictions in investment and core competitiveness. Hence, the Company has decided to end the garments e-commerce business to reduce future losses. The Company did not receive the full transfer payment for 30% equity of Shenguorong Financing Guarantee, and Future Growing Business Fund did not receive the full transfer payment for 45% equity of Shenzhen Jinshitonghe Investment Co., Ltd. on schedule, resulting in failure to implement profit distribution as agreed. For more detail, please refer to the related content in this Report. As Puning Huafengqiang Trade Co., Ltd. and Puning Lailisheng Trade Co., Ltd. failed to perform their debt obligations, the real estate property provided by the Company as a guarantee for them remains collateralized. For more detail, please refer to the related content in this Report. Any plans for the future or other forward-looking statements mentioned in this Report and its summary shall NOT be considered as absolute promises of the Company to investors. Therefore, investors and other relevant personnel shall be sufficiently aware of the risks and understand the differences between plans, budgets and promises. The Company is subject to the Guideline No. 11 of the Shenzhen Stock Exchange on 2 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Information Disclosure by Industry—for Listed Companies Engaging in Jewelry. The Company’s main business scope covers the sale of gold and jewelry commodities. It faced the problems of large inventory and limited product categories as it sought to satisfy the demands of its original major customers due to its high degree of reliance on them and weak industrial competitiveness. Affected by macro economy, the original major customers pursued transformation, leading to substantial changes in the Company’s sale channels. Coupled with the impact of COVID-19, there was a considerable decline in the demands of end customers. As a result, the Company failed to successfully implement the measure of developing channels to cut excess inventory. The Company has no interim dividend plan, either in the form of cash or stock. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. 3 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Table of Contents Interim Report 2020........................................................................................................................... 1 Part I Important Notes, Table of Contents and Definitions ........................................................... 2 Part II Corporate Information and Key Financial Information ................................................... 6 Part III Business Summary ............................................................................................................... 9 Part IV Operating Performance Discussion and Analysis ........................................................... 11 Part V Significant Events ................................................................................................................ 19 Part VI Share Changes and Shareholder Information ................................................................. 33 Part VII Preference Shares ............................................................................................................. 38 Part VIII Convertible Corporate Bonds ........................................................................................ 39 Part IX Directors, Supervisors and Senior Management ............................................................. 40 Part X Corporate Bonds .................................................................................................................. 41 Part XI Financial Statements .......................................................................................................... 42 Part XII Documents Available for Reference .............................................................................. 133 4 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Definitions Term Definition The “Reporting Period” or “Current Period” The period from 31 December 2019 to 30 June 2020 CSRC The China Securities Regulatory Commission SZSE, the stock exchange Shenzhen Stock Exchange Guangdong Jadiete Holdings Group Company Limited and its consolidated The “Company”, “JHG” or “we” subsidiaries, except where the context otherwise requires Shenghengchang Huifu Shenzhen Shenghengchang Huifu Industrial Co., Ltd. Risheng Chuangyuan Shenzhen Risheng Chuangyuan Asset Management Co., Ltd. Lianhua Huiren Shenzhen Lianhua Huiren Industrial Co., Ltd. Shenguorong Financing Guarantee Shenzhen Shenguorong Financing Guarantee Co., Ltd. Future Growing Business Fund Shenzhen Future Growing Business Fund (Limited Partnership) Chinese Gold Nobility Shenzhen Chinese Gold Nobility Jewelry Co., Ltd. Expressed in the Chinese currency of Renminbi, expressed in tens of thousands RMB, RMB’0,000 of Renminbi 5 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Part II Corporate Information and Key Financial Information I Corporate Information Stock name *ST JHG-B Stock code 200168 Stock exchange for stock Shenzhen Stock Exchange listing Company name in Chinese 广东舜喆(集团)股份有限公司 Abbr. (if any) 舜喆 Company name in English GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED (if any) Abbr. (if any) JHG Legal representative Chen Hongcheng (acting) II Contact Information Board Secretary Securities Representative Name Xu Wei Room 503 of No. 990 of Yiben Address E-commerce Building, Xili, Nanshan District, Shenzhen Tel. 0755-82250045 Fax 0755-82251182 Email address [email protected] III Other Information 1. Contact Information of the Company Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and email address of the Company in the Reporting Period. □ Applicable √ Not applicable No change occurred to the said information in the Reporting Period, which can be found in the 2019 Annual Report. 2. Media for Information Disclosure and Place where this Report is Kept Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s periodic reports in the Reporting Period. □ Applicable √ Not applicable The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2019 Annual Report. IV Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes √ No H1 2020 H1 2019 Change (%) Operating revenue (RMB) 3,929,103.10 895,132.43 338.94% 6 Guangdong Jadiete Holdings Group Company Limited Interim Report 2020 Net profit attributable to the listed 1,219,865.35 -4,262,281.71 -128.62% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before -4,761,156.34 -4,351,690.16 9.41% exceptional gains and losses (RMB) Net cash generated from/used in 16,125,943.79 -998,803.03 -1,714.53% operating activities (RMB)