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特力A(000025)公告正文

特 力B:2014年年度报告(英文版)

公告日期:2015-04-10

                      深圳市特力(集团)股份有限公司 2014 年年度报告全文SHENZHEN TELLUS HOLDING CO., LTD
         Annual Report 2014
             April 2014
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文
             Section I. Important Notice, Contents and ParaphraseBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion ofthe whole contents.All directors are attending the Board Meeting for Report deliberation.The Company has no plan of cash dividends carried out, bonus issued andcapitalizing of common reserves either.Lv Hang, Principal of the Company, Yang Jianping, person in charger of accountingworks and Ke Wensheng, person in charge of accounting organ (accounting principal)hereby confirm that the Financial Report of 2014 Annual Report is authentic, accurateand complete.
                                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                            ContentsAnnual Report 2014 ......................................................................................... 错误!未定义书签。Section I Important Notice, Contents and Paraphrase ................................................................. 2Section II Company Profile ............................................................................................................... 6Section III Accounting data and summary of finnaical indexes .................................................. 9Section IV Report of the Board of Directors ................................................................................ 12Section V Important Events .......................................................................................................... 28Section VI Changes in shares and particular about shareholders............................................... 37Section VII Preferred Stock……………………………………………………………………….44Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 45Section IX Corporate Governance ............................................................................................... 603Section X Internal Control .............................................................................................................. 59Section XI Financial Report ............................................................................................................ 61Section XII Documents available for reference ........................................................................... 185
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                      Paraphrase
                      Items                     Refers to                                 Contents
    CSRC                                            Refers to China Securities Regulatory Commission
    SZ Exchange                                     Refers to Shenzhen Stock Exchange
                                                            Shenzhen Branch of China Securities Depository & Clearing
    Shenzhen Branch of SD&C                         Refers to
                                                            Corporation LimitedCompany, the Company, our Company, Tellus
                                                Refers to Shenzhen Tellus Holding Co., Ltd.GroupReporting period, this reporting period, this
                                                Refers to Year of 2014year
    Auto Industry and Trade Co.,                    Refers to Shenzhen Auto Industry and Trade Corporation
                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文
                          Major Risks WarningChina Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) are the media for information disclosure appointed by theCompany, all information under the name of the Company disclosed on theabove said media shall prevail. Concerning the forward-looking statements withfuture planning involved in the Report, they do not constitute a substantialcommitment for investors, and investors are advised to exercise caution ofinvestment risks.
                                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                         Section II Company profileI. Company information
    Short form of the stock        Tellus-A, Tellus-B                         Stock code                    000025, 200025
    Stock exchange for listing     Shenzhen Stock ExchangeName of the Company (in
                               深圳市特力(集团)股份有限公司Chinese)Short form of the Company
                               深特力(in Chinese)Foreign name of the
                               Shenzhen Tellus Holding Co.,LtdCompany(if applicable)
    Legal representative           Lv Hang
    Registrations add.             3/F, Tellus Building, Shui Bei Er Road, Luohu District, Shenzhen
    Code for registrations add     518020
    Offices add.                   15/F, Zhonghe Building, Shennan Middle Road, Futian District, Shenzhen
    Codes for office add.          518031
    Company website                www.tellus.cn
    Email                          ir@tellus.cnII. Person/Way to contact
                                                        Secretary of the Board                       Rep. of security affairs
                                              Lv Hang (function in an acting capacity of
    Name                                                                                       Sun Bolun
                                              Secretary of the Board)
                                              15/F, Zhonghe Building, Shennan Middle       15/F, Zhonghe Building, Shennan MiddleContacts add.
                                              Road, Futian District, Shenzhen              Road, Futian District, Shenzhen
    Tel.                                          (0755) 83989398                              (0755) 83989339
    Fax.                                          (0755) 83989386                              (0755) 83989386
    Email                                         xmslv@sina.com                               s9239243@163.comIII. Information disclosure and preparation place
    Newspaper appointed for information disclosure           Securities Times (Shenzhen) and Hong Kong Commercial Daily(H.K.)Website for annual report publish appointed by CSRC http://www.cninfo.com.cn
    Preparation place for annual report                      Secretariat of the Board of Directors of Shenzhen Tellus Holding Co., Ltd.
                                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文IV. Registration changes of the Company
                                                                      Registration NO. for
                                                                                               No. of taxation
                       Date for registration Place for registration       enterprise legal                        Organization code
                                                                                                registration
                                                                              license
                                             Shenzhen
                                             Administration      of
    Initial registration   1986-11-10                                     440301103017750        440300192192210     19219221-0
                                             Industry          and
                                             Commerce
                                             Shenzhen
    Registration at end                          Administration      of
                       2014-07-02                                     440301103017750        440300192192210     19219221-0
    of report period                             Industry          and
                                             Commerce
                                             Before 26 May 1993, business scope of the Company: engaged in metal working
                                             machinery, general equipment, general component, abrasive tools, abrasive materials,
                                             instrument, micro motor, home appliances, electronic component, electronic device,
                                             electronic computer and accessories, auto parts, rubber products and construction
                                             materials. Self-operated products manufacture by the Company and owned enterprises
                                             such as self-used production raw materials, metal working machinery and general
                                             equipment; import & export of general component. Business scope of the Company
                                             changed dated 26 May 1993 as: engaged in metal working machinery, general
                                             equipment, general component, abrasive tools, abrasive materials, instrument, micro
                                             motor, home appliances, electronic component, electronic device, electronic computer
                                             and accessories, auto parts, rubber products, construction materials, metal materials,
                                             chemical materials and products, plastic products, hardware tools, warehousing &
                                             transportation and general equipment; self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                             working machinery; import & export of general component; import and exportChanges of main business since listing (if
                                             business complies with the approval certificate (Shen Mao Guan Shen Zheng Ziapplicable)
                                             No.098). Business scope of the Company changed dated 22 January 1997 as: develop
                                             enterprises (specific projects needs application); warehousing & transportation,
                                             processing on giving materials for machinery component and mechanic assembly.
                                             Domestic business and supply & marketing industry of materials (excluding
                                             monopolized commodity and commodity under special government control).
                                             Self-operated products manufacture by the Company and owned enterprises such as
                                             self-used production raw materials and metal working machinery; import & export of
                                             general component; import and export business complies with the approval certificate
                                             (Shen Mao Guan Shen Zheng Zi No.098). Business scope of the Company changed
                                             dated 3 December 2009 as: develop enterprises (specific projects needs application);
                                             develop and operate the real estate business on the land with usage rights obtained
                                             legally; domestic business and supply & marketing industry of materials (excluding
                                             monopolized commodity and commodity under special government control); rental and
                                             management for self-owned property. Self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                           working machinery; import & export of general component; import and export
                                           business complies with the approval certificate (Shen Mao Guan Shen Zheng Zi
                                           No.098). On 2 July 2014, business scope changed as: investment industrial projects
                                           (specific project shall be declared upon separately); domestic commerce, supply and
                                           marketing of material (monopolized commodities, commodity under special
                                           government control and licensed commodity excluded ;) self-owned property lease and
                                           management. Self-running the home-grown products of the Company and owned
                                           enterprise, personal productive material, metal working machinery, import and export
                                           business of the parts common; import and export are handle in line with the
                                           Accreditation Certificate of Foreign Trade: Shen Mao Guan Zheng Zi No. 098
                                           1. On 31 March 1997, the 159,588,000 state shares held by Shenzhen Investment
                                           Management Co., Ltd., the only non-circulation shareholder, were transfer to SDG;
                                           total share capital of the Company was 220,281,600 shares while 159,588,000 statePrevious changes for controlling
                                           shares held by SDG, a 72.45% in total share capital. 2. On 4 January 2006, theshareholders (if applicable)
                                           13,717,440 shares, as the consideration of share merger reform, were transfer to
                                           account of A-shareholders from SDG. After share merger reform, SDG holds 66.22% of
                                           the total share capital of the Company.V. Other relevant informationCPA engaged by the Company
    Name of CPA                         Ruihua Certified Public Accountants (LLP)
                                    3-9/F, West Tower, China Oversea Property Plaza,7# Building, 8# Yard, Yongdingmen WestOffices add. for CPA
                                    Binhe Rd., Dongcheng District, Beijing
    Signing Accountants                 Yuan Longping, Qin ChangmingSponsor engaged by the Company for performing continuous supervision duties in reporting period
    □ Applicable   √ Not applicableFinancial consultant engaged by the Company for performing continuous supervision duties in reporting period
    □ Applicable   √ Not applicable
                                                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文
        Section III. Accounting data and summary of financial indexesI. Main accounting data and financial indexesIt has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting errorcorrection√ Yes □ No
                                                                                                Changes over
                                                                       2013                                                    2012
                                             2014                                                  last year
                                                          Pre-adjustment Post-adjustment Post-adjustment Pre-adjustment Post-adjustment
    Operating income (RMB)                   464,987,527.80 486,729,308.18         486,729,308.18           -4.47% 419,642,661.31 419,642,661.31
    Net    profit     attributable     to
    shareholders      of      the   listed 10,345,217.67        6,900,719.04         7,185,944.01           43.96%      7,146,259.35      7,426,919.72company(RMB)
    Net    profit     attributable     to
    shareholders      of      the   listed
    company         after      deducting       8,775,007.16 -15,514,016.52         -15,228,791.55                      -15,060,776.70   -14,780,116.33
    non-recurring           gains     andlosses(RMB)Net cash flow arising from
                                           6,214,706.85    -2,629,634.80        -2,629,634.80                       -7,756,382.47     -7,756,382.47operating activities(RMB)Basic earnings per share
                                                0.0470           0.0313               0.0326            44.17%            0.0324            0.0337(RMB/Share)Diluted earnings per share
                                                0.0470           0.0313               0.0326            44.17%            0.0324            0.0337(RMB/Share)
    Weighted average ROE                             5.53%            3.67%                4.02%             1.51%             3.95%            4.33%
                                                                                                Changes over
                                                                   End of 2013                                             End of 2012
                                          End of 2014                                           end of last year
                                                          Pre-adjustment Post-adjustment Post-adjustment Pre-adjustment Post-adjustment
    Total assets (RMB)                       806,324,777.80 700,998,151.85         702,180,174.03           14.83% 644,911,292.00 646,125,282.32Net assets attributable to
    shareholder of listed company            191,880,262.80 191,351,957.28         182,370,970.80            5.21% 184,675,401.61 175,409,190.16(RMB)Whether share capital of the Company, from period-end to the disclosure date of semi-annual report, has changedand has influenced on amount of owners equity due to the new shares issuing, increase issues in stocks, allotment,stock ownership incentive exercise and buy-back etc. or not√ Yes □ No
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Basic EPS calculated by new share capital (RMB/Share)                                                                       0.0348II. Difference of the accounting data under accounting rules in and out of China1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicableThe Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicableThe Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.III. Items and amounts of extraordinary profit (gains)/loss
    √ Applicable    □Not applicable
                                                                                                                            In RMB
                      Item                           2014                 2013                 2012                  NoteGains/losses from the disposal of
    non-current asset (including the write-off            148,486.49        32,501,637.93        15,152,740.17that accrued for impairment of assets)
    Gains/losses of debt restructure                                                             14,377,457.14Gains/losses from contingency without
                                                      438,195.19         -2,130,200.00routine business concernedHeld transaction financial asset, gains/lossesof changes of fair values from transactionfinancial liabilities, and investment gainsfrom disposal of transaction financial asset,
                                                     1,226,127.75transaction financial liabilities and financialasset available for sales, exclude theeffective hedging business relevant withnormal operations of the Company
    Restoring       of   receivable      impairment
                                                        47,282.17provision that tested individuallyOther non-operating income and expenditure
                                                      248,824.36           -391,032.13            65,402.35except for the aforementioned items
                                                                             深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Less: Impact on income tax                              506,161.39          7,495,101.45         7,398,899.92Impact on minority shareholders equity
                                                          32,544.06            70,568.79            -10,336.31(post-tax)
    Total                                                  1,570,210.51        22,414,735.56        22,207,036.05              --Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
    □ Applicable    √ Not applicableIn reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
                                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文
                            Section IV. Report of the Board of DirectorsI. IntroductionIn 2014, it is a turning point for Tellus in aspect of marketization reform and transformation and upgrading. Underthe new leadership of the Group, thoroughly arranging and adjusting the automotive aftermarket what we alreadyhave and leasing management and property service business of the resources assets, strengthen supervisions andgroup decision-making, pushing on marketization, standardization and institutionalized management. On deepanalysis of the real conditions and market environment basis, formulated a “Business TransformationDevelopment Guidelines of the Tellus”, a strategy development of jewelry-oriented transformation was definedpreliminarily.In reporting period, combined with the actual situation of the Company, we bring out the financing platformadvantage of listed companies, in capital market, initially start-up the private placement since IPO (that is initialpublic offering) capital raising in 1993. On 3 February 2015, the application of private placement has beenapproved by the Issuance Examination Commission of CSRC, new 77 million shares will increase during theplacement and listed in Shenzhen Stock Exchange dated 27 March 2015.The raising money investment project – Tellus Shuibei Jewelry Building, is the first step of the jewelry-orientedtransformation for Tellus, the project was officially started in July 2013 and expected to complete in December2015. Business of the Tellus will systematically expand in jewelry industry for relevant investment while TellusShuibei Jewelry Building in construction. Tellus Group solve the capital demand of Tellus Shuibei JewelryBuilding construction by means of the private placement, meanwhile, raising a start-up capital for investment injewelry industry, and help the Group to achieve the business transformation and upgrading. After the placement,net assets of the Company grow significantly with major enhancements in capital strength; as for the parts forcurrent capital supplement, it will relief part of the needs in loans due for business development, reduce interestexpenditure, effective control the financial costs and benefit a lot in improving total operation performance of theCompany; liabilities level of the Company will decrease at the same time, asset structure are optimized andanti-risk capability enhanced significantly.During the reporting period, the company achieved operation income of RMB 464.99 million with a y-o-y downof 4.47 percent; After Taking out the noncomparable factors(achieved housing disposal income of RMB 41.25million in the corresponding period last year), operation income realized RMB 19.51 million in total with 4.38percent up y-o-y.Profit realized RMB 10.03 million in total with 31.01 percent down y-o-y;After taking out thenoncomparable factors(achieved stock disposal income of RMB 1.14 million in the current issue and RMB 32.16million in the corresponding period last year), profit rose to RMB 26.52 million from the previous year, net profitattributable to owners of parent company amounting as RMB 10.35 million, 43.96 percent up y-o-y, net profitattributable to the shareholders of listed company which excluded the extraordinary gains or losses amounting asRMB 8.78 million, 24.01 million increased y-o-y.II. Main business analysis1. IntroductionProgress of the development strategy and operation planning that disclosed previouslyIn the working report of the Board for year of 2013, the Company presented that in 2014, the Company willcontinues to insist on guiding ideology of “innovation-driven, adjustment & transition oriented and aim at
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文sustainable development”, carry out the work by bringing a closer around the main line of “operation target for thewhole year accomplished, made great effors to promoted key projects and accelerate enterprise operationaltransformation”In the reporting period, in line with the established strategy orientation, the Company achieved a stable operationand aggressive status. In aspect of key project construction, project of Tellus Shuibei Jewelry Building is in agood progress, and entered into the construction phase on schedule currently. As for the operationaltransformation, being deliberated by general meeting of the Company, formulated a “Business TransformationDevelopment Guidelines of the Tellus”, a strategy development of jewelry-oriented transformation was definedpreliminarily, and complete relevant works according to the plan.Reasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year disclosed□ Applicable √ Not applicableChanges of main operation mode□ Applicable √ Not applicable2. RevenueNoteIn reporting period, operation income of the Company was RMB 464,987,527.80 with 4.47 percent downy-o-y;income from main business amounting as RMB 451,551,057.76, 2.76 percent up y-o-y.Income from physical sales larger than income from labors√ Yes □ No
                                                                                                                Increase/decrease
       Industries                 Item                 Unit               2014                  2013
                                                                                                                      y-o-y
                       Sales volume          vehicle                              2,026                 2,090                 -3.06%Auto sales (vehicle)
                       Inventory             vehicle                                329                   356                 -7.58%Reasons for y-o-y relevant data with over 30% changes□Applicable √Not applicableMaterial orders in hands□ Applicable √ Not applicableMaterial changes or adjustment for products or services of the Company in reporting period□ Applicable √ Not applicableMajor sales of the Company
    Total top five clients in sales (RMB)                                                                                22,628,050.30
    Proportion in total annual sales volume for top five clients                                                                  4.87%Information of top five clients of the Company□ Applicable √ Not applicableOther situation of main clients□ Applicable √ Not applicable
                                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文3. CostIndustry classification
                                                                                                                               In RMB
                                                      2014                                   2013
        Industry
                            Item                          Ratio in operation                      Ratio in operation   Y-o-y changes
    classification                         Amount                                   Amount
                                                                cost                                    cost
    Auto sales          Auto products       305,567,651.81              78.47%       292,287,079.25             75.42%             4.54%Auto inspectionand maintenance
                    Raw materials        36,668,260.73                 9.42%      40,804,748.49             10.53%            -10.14%and accessoriessalesProperty rental
                    Other                44,756,421.29              11.49%        45,485,024.13             11.74%             -1.60%and serviceProduct classification
                                                                                                                               In RMB
                                                      2014                                   2013
        Product
                            Item                          Ratio in operation                      Ratio in operation   Y-o-y changes
    classification                         Amount                                   Amount
                                                                cost                                    cost
    Auto sales          Auto products       305,567,651.81              78.47%       292,287,079.25             75.42%             4.54%Auto inspectionand maintenance
                    Raw materials        36,668,260.73                 9.42%      40,804,748.49             10.53%            -10.14%and accessoriessalesProperty rental
                    Other                44,756,421.29              11.49%        45,485,024.13             11.74%             -1.60%and serviceNoteOperation cost for year of 2014 was RMB 389,423,619.69, a 0.48% growth y-o-y.Main business cost was RMB 386, 992,333.83, a 2.22% up y-o-y.Main suppliers of the Company
    Total purchase amount from top five suppliers (RMB)                                                                    300,258,088.93Proportion in total annual purchase amount for top five
                                                                                                                              95.00%suppliersInformation of top five suppliers of the Company□ Applicable √ Not applicableOther notes of main suppliers of the Company□ Applicable √ Not applicable
                                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文4. Expenses
              Item                      This Year                      Last Year               Amount changed           Ratio changed
    Sales expenses                            21,073,376.98                  21,265,233.88                    -191,856.90            -0.90%
    Administrative expenses                   43,509,348.15                  43,294,086.57                    215,261.58              0.50%
    Financial expenses                        17,771,137.44                  17,364,050.91                    407,086.53              2.34%5. R&D expensesNil6. Cash flow
                                                                                                                                  In RMB
                  Item                           2014                               2013                         Y-o-y changesSubtotal of cash in-flow from
                                                    524,941,895.67                     546,280,708.00                             -3.91%operation activitySubtotal of cash out-flow from
                                                    518,727,188.82                     548,910,342.80                             -5.50%operation activityNet cash flow from operation
                                                        6,214,706.85                    -2,629,634.80                          -336.33%activitySubtotal of cash in-flow from
                                                        6,803,919.00                    38,079,977.47                            -82.13%investment activitySubtotal of cash out-flow from
                                                    103,733,506.30                      41,251,674.42                            151.46%investment activityNet cash flow from investment
                                                    -96,929,587.30                      -3,171,696.95                         2,956.08%activitySubtotal of cash in-flow from
                                                    505,529,894.01                     162,083,399.98                            211.89%financing activitySubtotal of cash out-flow from
                                                    397,936,251.56                     148,257,159.60                            168.41%financing activityNet cash flow from financing
                                                    107,593,642.45                      13,826,240.38                            678.18%activityNet increased amount of cash
                                                     16,879,221.55                         8,020,916.71                          110.44%and cash equivalentReasons for y-o-y relevant data with over 30% changes√Applicable □Not applicable
           Item                  2014                        2013                  Y-o-y changes                    Note
    Net cash flow from                6,214,706.85                 -2,629,634.80               -336.33% Unit price of the rent for leasing
                                                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文
    operation activities                                                                                  business increased, than the
                                                                                                      revenue from rental increased
    Subtotal      of   cash                6,803,919.00             38,079,977.47                -82.13% There are major cash in-flow from
    in-flow            from                                                                               real estate disposal at same period
    investment activity                                                                                   of last year
    Subtotal      of   cash           103,733,506.30                41,251,674.42                151.46% Continued investment for
    in-flow            from                                                                               constuction in process of
    investment activity                                                                                   Zhongtain Company
                                  -96,929,587.30                 -3,171,696.95              2956.08% Continued investment forNet cash flow from
                                                                                                      constuction in process ofinvestment factitive
                                                                                                      Zhongtain Company
    Subtotal      of   cash           505,529,894.01               162,083,399.98                211.89% New loans increased in the Period
    in-flow            fromfinancing activity
    Subtotal      of   cash           397,936,251.56               148,257,159.60                168.41% Bank loans due paid back
    out-flow           from                                                                               increased in the Periodfinancing activity
    Net cash flow from                107,593,642.45                13,826,240.38                678.18% New bank loans increased in the
    financing factitive                                                                                   Period
    Net increased                      16,879,221.55                  8,020,916.71               110.44% Net cash flow from financing
    amount of cash and                                                                                    activities increasedcash equivalentReasons of major difference between the cash flow of operation activity in report period and net profit of the Company□ Applicable √ Not applicableIII. Composition of main business
                                                                                                                                      In RMB
                                                                                   Increase/decrease Increase/decrease Increase/decrease
                           Operating
                                             Operating cost   Gross profit ratio     of operating     of operating cost      of gross profit
                            revenue
                                                                                     revenue y-o-y         y-o-y              ratio y-o-yAccording to industries
    Auto sales                309,927,524.30     305,567,651.81                1.41%             4.47%               4.54%                -0.07%Auto inspectionand maintenance
                           45,604,870.24      36,668,260.73             19.60%              -13.59%            -10.14%                -3.09%and accessoriessalesProperty rental
                           96,018,663.22      44,756,421.29             53.39%               6.70%              -1.60%                 3.93%and serviceAccording to products
    Auto sales                309,927,524.30     305,567,651.81                1.41%             4.47%               4.54%                -0.07%
                                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文Auto inspectionand maintenance
                       45,604,870.24         36,668,260.73             19.60%             -13.59%       -10.14%              -3.09%and accessoriessalesProperty rental
                       96,018,663.22         44,756,421.29             53.39%               6.70%        -1.60%               3.93%and serviceAccording to region
    Shenzhen              451,551,057.76        386,992,333.83             14.30%               2.75%         2.22%               0.45%Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one years scope of period-end□ Applicable √ Not applicableIV. Assets and liability analysis1. Major changes of assets
                                                                                                                              In RMB
                             End of 2014                     End of 2013
                                                                                         Ratio
                                       Ratio in total                  Ratio in total                Notes of major changes
                       Amount                            Amount                         changes
                                          assets                          assets
    Monetary fund       80,045,669.65             9.93% 69,898,791.56             9.95%        -0.02%Account
                      1,373,257.89            0.17%     5,016,738.78          0.71%        -0.54%receivable
    Inventory           48,209,026.18             5.98% 62,826,365.70             8.95%        -2.97%Investment real
                    85,083,745.72            10.55% 88,422,673.91            12.59%        -2.04%estate
    Long-term equity     211,270,265.8
                                             26.20% 191,394,600.98           27.26%        -1.06%
    investment                         0
                    142,849,121.7
    Fix assets                                   17.72% 149,968,663.80           21.36%        -3.64%
                                   2
    Construction in     122,551,469.9
                                             15.20% 41,642,020.40             5.93%         9.27%
    progress                           72. Major changes of liability
                                                                                                                              In RMB
                                  2014                            2013
                                                                                         Ratio
                                       Ratio in total                  Ratio in total               Notes of major changes
                       Amount                            Amount                         changes
                                          assets                          assets
                                                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Short-term loans       74,719,672.00           9.27% 110,969,952.93               15.80%     -6.53%
                       178,597,550.5
    Long-term loans                              22.15% 131,000,000.00                18.66%     3.49%
                                      53. Assets and liability measure by fair value
    √ Applicable     □Not applicable
                                                                                                                                  In RMB
                                                        Accumulative
                                      Gains/losses of                          Impairment      Amount
                      Amount at                         changes in fair                                     Sale amount in   Amount at
         Item                         changes in fair                      accrual in this   purchased in
                     period-begin                       value reckoned                                        this period    period-end
                                          value                                  period       this period
                                                          into equityFinancial assets3. financial
    assets available      1,480,168.80        -88,348.00      1,026,219.55                                        1,507,422.52for sale
    Total above           1,480,168.80        -88,348.00      1,026,219.55                                        1,507,422.52           0.00Financial
                               0.00                                                                                                  0.00liabilityWhether measurement attributes for main assets of the Company in report period have major changes or not
    □ Yes     √No4. Main overseas assets□ Applicable √ Not applicableV. Core competitive-ness analysisMain business of the Company is transforming towards jewelry industry. Shenzhen is the main gathering place ofjewelry industry in China, and Shuibei is the core accumulation area for Shenzhen jewelry industry, the Companypossesses large numbers of properties in Shenzhen Shuibei area. The Tellus-Gem Golden Jewelry Industrial Park,which has entered all-round construction period, is listed as one of the 11 pilot projects for historical industrialestate transform in Shenzhen.The Company is the biggest property owner in the industrial park——Owning No. 2,No. 3 properties through oneself or wholly-owned subsidiary; Two enterprises in which the Company shares theirprofits with owe No. 7 and No. 8 properties respectively, of which, the Tellus Shuibei Jewelry Building,constructed by holding enterprise of the Company Shenzhen Zhongtian Industrial Co., Ltd. starts successfully andexpected to complete at end of 2015.The Company will be tight holds the historic opportunity of upgrading and transforming in gathering area ofShuibei jewelry industry, running on platform of investment construction projects in industry park, bases onself-owned property in Shuibei and jewelers resources, take differentiated competitive strategies, exploit deepdesires of relevant E-business and financial services center on jewelry market operation, providing all-roundhigh-end value added services, transforming to operational service providers for jewelry market, and eventually
                                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文build an interactive pattern of three business as jewelry market operation, e-business and financial services. In thesame time, the Company will integrate all the resources of jewelry industry and take full advantage of the identityof the listed state-owned enterprise,the biggest property owner in the industrial park to forge cloudplatforms ,which will cover the industrial park , influence Shuibei area.Basing on the data mining, the Companywill provide services including E-business, financial services and so on.Moreover,extending its jewelry culturalreach , buliding brands and constructing a biosphere combined online and offline communication.VI. Investment analysis1. Equity investment outside(1) Investment outside□ Applicable √ Not applicableThe Company had no investment outside in the period.(2) Holding the equity of financial enterprise
    □ Applicable    √ Not applicableThe company had not held the equity of financial enterprise in the reporting period-end.(3) Securities investment
    □ Applicable    √ Not applicableThe company had no securities investment in the reporting period.(4)Explanation on equity of other listed company held
    √ Applicable   □Not applicableAt the begin of the report period, the Company holds 135,920 shares of China Merchants Bank Co., Ltd. (Shortform of Stock: China Merchants, Stock Code: 600036), who listed in Shanghai Stock Exchange; accounting itemas: financial assets available for sales; During the reporting period, the Company sold above shares on 30 July2014, generating revenue RMB 1,141,821.27.2. Trust financing, derivative investment and entrusted loans(1) Trust financing□ Applicable √ Not applicableThe company had no trust financing in the reporting period.(2) Derivative investment
    □ Applicable    √ Not applicableThe company had no derivative investment in the reporting period.
                                                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文(3) Entrusted loans
    □ Applicable     √ Not applicableThe company had no entrusted loans in the reporting period.3. Application of raised proceeds
    □ Applicable     √ Not applicableThe company had no application of raised proceeds in the reporting period.4. Main subsidiaries and stock-jointly companies
    √ Applicable    □Not applicableParticular about main subsidiaries and stock-jointly companies
                                                                                                                                        In RMB
                                               Main
    Company                                                    Register                                  Operating     Operating
                    Type       Industries   products or                     Total assets Net Assets                                 Net profit
      name                                                   capital                                  revenue         profit
                                              serviceShenzhen
    Auto                                        Sales of
                                                           RMB 58.96 284,275,31 232,886,22 18,368,986. 13,479,776. 12,605,339.
    Industry        Subsidiary    Business      auto and
                                                           million                 0.23        0.77          76                68           64
    and Trade                                   accessoriesCorporation
    Shenzhen                                    Auto
    SD Huari                                    maintenanc
    Automobile                    Service       e and          US$ 5            74,501,252. 32,835,676. 36,919,863. -9,543,698. -9,284,184.
                Subsidiary
    Enterprise                    industry      production million                      66           76          80                04           53
    Co.                                         and sales of
    Limited                                     accessoriesShenzhen
    Zhongtian                     Service       Property       RMB 7.25         200,692,74 20,834,748. 1,073,420.1
                Subsidiary                                                                                          756,077.58 567,535.32
    Industrial                    industry      rental         million                 3.68          47             3Co., LtdShenzhenHuari
    Toyota                                      Sales of       RMB 2            68,187,815. -8,003,742. 351,004,73 4,485,945.2 4,580,285.9
                Subsidiary    Business
    Automobile                                  automobile million                      81           06         4.70               1                 3Sales Co.Ltd
    Shenzhen                                    Manufactur
    Xinyongton                    Service       e of           RMB 19.61 14,038,877. 1,592,678.7 3,641,177.2
                Subsidiary                                                                                          545,503.30 215,536.36
    g Auto                        industry      inspection     million                  67            8             0
    Vehicle                                     equipment
                                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Inspection                                for motor
    Equipment                                 vehicleCo., Ltd.ShenzhenTellus
                                          InspectionXinyongton
                             Service      and repair      RMB 32.90 81,340,577. 43,610,424. 15,214,985.
    g              Subsidiary                                                                                       87,315.12   82,599.32
                             industry         of motor    million                35          53           33Automobile
                                              vehicleDevelopment Co. Ltd
    Shenzhen                                  Real estate
    SD Tellus                    Manufactur developme RMB 31.15 28,899,628. 11,870,795.
               Subsidiary                                                                               0.00 -433,886.06 -433,886.06
    Real Estate                  ing              nt and      million                49          84
    Co., Ltd                                      operationShenzhen
    SD Tellus                                 Property
                             Service                      RMB            28,569,772. 10,080,835. 39,338,317.
    Property       Subsidiary                 managemen                                                            267,419.78 180,163.75
                             industry                     7.05million            31          58           92
    Managemen                                 tt Co., LtdShenzhen
    Tellus Real                               Trading
                             Service                      RMB 2          2,644,321.4 2,482,226.9
    Estate         Subsidiary                 agency of                                                325,547.00 -46,857.56 -38,027.52
                             industry                     million                 5           7
    Exchange                                  real estateCo. LtdShenzhen
                                          Sales ofZung Fu
               Stock jointly Service      auto and        RMB 30         347,608,10 220,607,53 1,422,380,4 49,763,300. 39,506,811.Tellus Auto
               company       industry     maintenanc million                   2.00        6.00        99.00          00          00Service Co.,
                                          eLtd.
                                          ManufacturShenzhen
                                          e and
    Dongfeng       Stock jointly Manufactur                   RMB 100        652,391,45 160,735,70 511,498,36 15,042,560. 44,937,693.
                                          maintenanc
    Automobile company           ing                          million              4.57        5.45         6.88          82          08
                                          e ofCo., Ltd.
                                          automobileShenzhen
    Xinglong                                  Process of      RMB
               Stock jointly Manufactur                                  266,555,56 64,979,136.
    Machinery                                     mould and 60.6333
               company       ing                                               0.58          82
    Module                                        exportation millionCo., Ltd.Notes of main subsidiaries and stock-jointly companiesParticular about subsidiaries obtained or disposed in report period□ Applicable √ Not applicable
                                                                                       深圳市特力(集团)股份有限公司 2014 年年度报告全文5. Major projects invested by non-raised fund
    √ Applicable    □Not applicable
                                                                                                                          In ten thousand Yuan
                                                       Accumulated
                                                                                                                                   Disclosure
                       Total          Invested in this fund actually                                           Disclosure date
    Project                                                                    Progress      Project benefit                        index (if
                     investment            year        till end of this                                        (if applicable)
                                                                                                                                   applicable)
                                                           period
                                                                                                                                 Found more in
                                                                                                                                 “Investment
                                                                                                                                 Abroad
                                                                                                                                 Announcement
                                                                                                                                 ” No. 2013-004
                                                                                                                                 released on
                                                                                                                                 SecuritiesTellus Shuibei
                                                                                                                                 Times, Hong
    Jewelry                    41,364             10,752            17,523             42.36%                      2013-01-09
                                                                                                                                 KongBuilding
                                                                                                                                 Commercial
                                                                                                                                 Daily and
                                                                                                                                 Juchao Website
                                                                                                                                 (http://www.cni
                                                                                                                                 nfo.com.cn)
                                                                                                                                 dated 9 January
                                                                                                                                 2013
    Total                      41,364             10,752            17,523            --               --                --                 --VII. Estimated performance for year of 2015 (From January to March)Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
    □ Applicable     √ Not applicableVIII. Special purpose vehicle controlled by the Company□ Applicable √ Not applicableIX. Prospect for future development of the Company(I) Development trend of the industry for the CompanyInternational and domestic economic still stable and weak in 2014, the country is in a way of structural adjustment,the pressure of economic downturn is still there. Automobile and property management industry competitionintensifies suffer by antitrust law, vender Business Policy and minimum wages soaring respectively. Automobilesales market is in grave difficulties with dramatically down in profit, competition comes more and more fierce,
                                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文sales of auto shows a situation of industry-wide losses, especially the car purchase quota policy issued byShenzhen Municipal Government in 2015, which have severely affected the auto-sales enterprise in Shenzhen;Market of property leasing realizes maximum profits and has remarkable promotion in the revenue by themarket-driven bidding mechanism.To sum up, the Companys self-supporting traditional automobile business and property management no longerhas the sustainable development prospect, only to succeed in transformation to survival and develop.
    (II) Development strategy and main mission measuresThe Company will around the business model transformation and development, focus on operation of TellusShuibei Jewelry Industry Park and comprehensive supporting services; based on main business of development &operation of jewelry industry park and comprehensive supporting services, make the most of market resources andgroups resources, arranging industry chain of the jewelry business, defined business model for the operation ofjewelry industry park, satisfied necessary of customer and create a brand value for Tellus.The Company unified provisioning by means of unity controlling & management, strengthen management,increasing revenue and reducing costs, guarantee a successful accomplishment for operation task in the wholeyear. Intensify resource asset management, well-done in planning and packaging, achieved more market-orientedfor the leasing price and improve operation benefit for property; accelerate process of marketalization for theproperty enterprise, strive to obtained management right of the property of the Shuibei Jewelry Industry Park,explore the management mode of the property for a professional industrial park; enhance management and controlfor corporate structure, supporting favorable operation within the enterprise; act according to stable, orderly andas soon as possible principle, completes the business exit for part of the automobile enterprise.The Company will promptly promote the strategic target of making the transition to jewellery industry integratedservice operator. Looking for companys in jewelry specialized market, E-business and financial services throughvarious ways,which conformed to the Companys strategic target and its own developing characteristics, to realizethe goal of becoming a bigger and stronger enterprise via mergers and acquisitions.In order to improve the governance structure of listed companies, establish a high-class managers and keyemployee constraint and incentive mechanism ,supported by controlling shareholders,the Company will activelypromote research in long-term encouragement scheme of the stock option according to CSRCs document ofshares of listed companies' incentive management approach and the Guidelines for the establishment of employstock ownership plan of listed companies.(III) Capital requirement in way of development
    The Company completed private placement in March 2015 and fund-raising has fully funded.               In 2015, as forthe funds needed in key projects construction and new business development, on the one hand, the Company willstrictly follow utilization plan of the fund-raising, invested fund-raising in investment projects, guarantee a stablepromotion of the fund-raising investment project on schedule.The Company will promptly promote the construction of the No.3 properties in the Tellus-Gem Golden JewelryIndustrial Park. Depending on its own situation, The Company will take full evaluation in bank loaning andcapital marketer financing to raise construction fund.On the other hand, combined with endurance of theenterprise and short, medium and long-term interest of the Company, actively explore and research morefinancing plans with low-costs, and providing more stable capital for business development of the Company.(IV) Risks probably confrontedThe market is subject to fierce competition and under the trend of slowing growth, automobile consumptionmarket in Shenzhen is showing a negative growth, oversupply situation is apparent, especially suffer by carpurchase quota policy of Shenzhen in 2015, the entry level model and brand main with self-owned brand will
                                                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文gradually shrink, middle-level brand will be squeezed; and the FYMS, operates by the Company belongs tomiddle-level brands, and mainly sales the small-displacement entry level model, therefore, sales of automobileand service business will be influenced greatly, the Company in 2015 shows a certain risk in operation.In face of all these risks, on the one hand, the Company will formulated plan of orderly exit market of auto sales,act according to stable, orderly and as soon as possible principle, completes the business exit for part of theautomobile enterprise; on the other hand, under the help of business mode transformation and development, turnsattentions to operation of Tellus Shuibei Jewelry Industry Park and comprehensive supporting services, andsparing no effort in transforming to operational service providers for jewelry market.X. Explanation from the Board and Supervisory Committee for “Qualified Opinion” thatissued by CPA□ Applicable √ Not applicableXI. Comparing with last year’s financial report, explain changes in aspect of accountingpolicy, accounting estimates and calculation measures
    √ Applicable   □Not applicableAccounting policy changed due to new accounting standards implementedAt the beginning of 2014, Ministry of Finance issued the followed rules Cai Kuai [2014] No. 6; No.8; No.10;No.11; No.14 and No.16, that is "Accounting Standards for Business Enterprises No. 39 - Fair ValueMeasurements ", " Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements"(2014 Revised), "Accounting Standards for Business Enterprises No. 9 - Employee Remuneration(2014Revised)", " Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements "(2014Revised), "Accounting Standards for Business Enterprises No. 40 - Joint Venture Arrangement", "AccountingStandards for Business Enterprises No. 2 - Long-term Equity Investments(2014 Revised)" and "AccountingStandards for Business Enterprises No. 41 - Disclosure of Interests in Other Entities", and requires all theenterprises implementing the accounting standards to execute since July 1, 2014. Meanwhile, the Ministry ofFinance issued the Cai Kuai [2014] No.23 "Accounting Standards for Business Enterprises No. 37 - Presentationof Financial Instruments (2014 Revised)"(“Presentation of Financial Instruments” for short), which requires theenterprises implementing the accounting standards to present the financial instruments in the financial reports of2014 and the subsequent periods in accordance with the requirements of the accounting standards.Being deliberated and approved by 10th meeting of 7th session of the Board dated 24 October 2014, the Companyexecuted the above mentioned 7 new or revised accounting standards except the Presentation of FinancialInstruments since 1 July 2014, and started executing the Presentation of Financial Instruments in preparing theannual financial repot of 2014. And impart on items and amount of current and previous financial statements areas due to the adjustment for standards engagement:
    Standards          Changes of accounting policy and impacts on the             Amount impact on relevant financial statement
                                             Company                                    dated 1 January 2014/ for year of 2013
                                                                                            Items              Amount impact
                                                                                                             Increase +/decrease -
    Accounting           Before       “Accounting       Standards   for    Business Financial          assets          +10,478,985.77
    Standards         for Enterprises     No.        2    -    Long-term        Equity available for sale
    Business Enterprises Investments(2014 Revised)” executed, as for the Long-term                     equity           -10,478,985.77
                                                                             深圳市特力(集团)股份有限公司 2014 年年度报告全文No. 2 - Long-term equity investment of the invested entity without investment
    Equity               common controls or significant influence and which
    Investments(2014     has no quota in an active price and with its fair value
    Revised)             can not be measured reliably, reckoned as long-term
                     equity investment by cost method. After “Accounting
                     Standards for Business Enterprises No. 2 - Long-term
                     Equity Investments(2014 Revised)” executed, as for
                     the equity investment of the invested entity without
                     common controls or significant influence and which
                     has no quota in an active price and with its fair value
                     can not be measured reliably, reckoned as financial
                     assets available for sale. The Company running an
                     accounting treatment for the change of policy on
                     retrospective application.
    Accounting           Before       “Accounting    Standards   for     Business Deferred income tax            +1,182,022.18
    Standards          for Enterprises No. 9 - Employee Remuneration (2014 assets
    Business Enterprises Revised)” executed, as for the after-service welfare for Long-term                     +10,297,200.34No. 9 - Employee the emeritus and retired, the Company reckoned into remuneration
    Remuneration     current gains/losses while the account actually payables
                     occurred. After “Accounting Standards for Business
                                                                               Minority interest                 -134,191.68
                     Enterprises No. 9 - Employee Remuneration (2014
                                                                                                               -8,980,986.48
                     Revised)” executed, as for the after-service welfare for Retained profit
                     the emeritus and retired, found more in NoteIV. 21. Administration                          -933,886.44
                     The Company running an accounting treatment for the expenses
                     change of policy on retrospective application.
                                                                               Financial expenses               +580,459.20
                                                                               Opening       retained          -9,266,211.45
                                                                               profitXII. Particular about major accounting errors correction that needs retroactive re-statementin reporting period□ Applicable √ Not applicableNo particular about major accounting errors correction that needs retroactive re-statement for the Company in the reporting.XIII. Compare with last year’s financial report; explain changes in consolidation statement’sscope□ Applicable √ Not applicableNo changes in consolidation statements scope for the Company in the reporting.XIV. Profit and dividend distributionFormulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the Reporting
                                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文Period
    √ Applicable     □Not applicableOn 3 June 2014, the relevant proposals of Amendment of Article of Association have deliberated and approvedby 4th extraordinary general meeting of 2014. Pursuit to relevant regulations of “Regulatory Guidelines of ListedCompanies No. 3 – Cash Bonus of Listed Companies” and combine with real condition, the Company revisedrelevant clauses with profit distribution concerned, and futher defined relevant policies of cash bonus.In accordance with “Annoucement on Futher Implement Cash Bonus for Listed Companies” and relevantrequirement of “Regulatory Guidelines of Listed Companies No. 3 – Cash Bonus of Listed Companies”, theCompany formulated a “Proposal of Shareholders Returns Plan for the Next Three-Year (Y2014-Y2016)”,well-regulated specific return plans for the year from 2014 to 2016. and the proposal has been deliberated andapproved by 4th extraordinary general meeting of 2014. except for satifying profit distribution defined in newresided Article of Association, the shareholders return proposed that from 2014 to 2016, profit of the Companyshall firstly making up the annual losses of previous years; after losses of previous years are remedied, on thepremise of such earnings and cash flow satisfy normal operation and long-term development of the Company, anactive profit distribution plan shall be implemented by the Company, formulation period and relevantdecision-making mechanism on shareholders returns are well-defined in the returning plans.
                                                Special explanation on cash bonus policyMeet regulation of Article of Association or requirement from
                                                                    Yresolution of General Meeting: (Y/N)Bonus standards and proportion is well-defined and clear: (Y/N) YRelevant decision-making procedures and mechanism is
                                                                    Ycompleted (Y/N)Independent director make a conscientious effort and play a due
                                                                    Yrole (Y/N):Minority shareholders have opportunity to fully express their
    views and demands, and their legal interest are under good          Yprotection (Y/N):As for those cash bonus policy with adjustment or changed
    concerned, condition and procedures are regulated and               Ytransparency (Y/N):Profit distribution plan and capitalizing of common reserves plan in latest three years (including the reporting period)The accumulated retained profit ended as 2012, 2013 and 2014 counted as -47.2915 million Yuan,-49.3717million Yuan and -39.0265 million Yuan respectively. The Company has no profit distribution and cash bonusin latest three years due to the profit available for distribution to shareholders for year of 2012, 2013 and 2014 islack of requriments with negative numbers.Cash dividend in latest three years
                                                                                                                                 In RMB
                                                    Net profit           Ratio in net profit                          Proportion of the
    Year for bonus          Amount for cash                                                       Amount reckoned
                                                                                                                      amount reckoned
                                                  attributable to          attributable to     into cash bonus from
         shares          bonus (tax included)                                                                       into cash bonus from
                                                 shareholders of          shareholders of         cash repurchase
                                                                                                                       cash repurchase
                                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                              listed company in          listed company
                                                 consolidation              contained in
                                              statement for bonus        consolidation
                                                     year                    statement
    2014                                   0.00        10,345,217.67                      0.00%                   0.00                        0.00%
    2013                                   0.00          7,185,944.01                     0.00%                   0.00                        0.00%
    2012                                   0.00          7,426,919.72                     0.00%                   0.00                        0.00%The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividendproposed□ Applicable √ Not applicableXV. Profit distribution plan and capitalizing of common reserves plan for the Period
    □ Applicable    √ Not applicableThe Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe yearXVI. Social responsibility□ Applicable √ Not applicableXVII. In the report period, reception of research, communication and interview
    √ Applicable   □Not applicable
                                                                                                               Contents discussed and
       Time                  Place                Way                    Type                 Reception
                                                                                                                  material provided
                                                                                                             History and evolution of the
                                                                                                             Company,                 industry
                                                                                                             structure        and     business
                                                                                                             development;              general
                                                                                                             condition of the foreign
                                                                                                             investment        projects     that
                                                                                                             disclosed in recent years;
                                                                                                             and automobile business
                                                                                         Small shareholder
    2014-03-03           The Company         Field research          Personal                                    development.                  Files
                                                                                         Guo Haiying
                                                                                                             provided including: annual
                                                                                                             report of 2012; Resolution
                                                                                                             Notice      of     the       Board
                                                                                                             (2013-002);         Notice      of
                                                                                                             Foreign                Investment
                                                                                                             (2013-003) and Notice of
                                                                                                             Foreign                Investment
                                                                                                             (2013-004)
    Reception (times)                                                                                                                             1
                                                                        深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Number of hospitality                                                                                                    0
    Number of individual reception                                                                                           1
    Number of other reception                                                                                                0Disclosed, released or let out major undisclosed
                                                 Un-documented major information are not disclosed, released or revealinformation
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                           Section V. Important EventsI. Significant lawsuits and arbitrations of the Company
    □Applicable       √Not applicableThere are no major lawsuits and arbitrations in the PeriodII. Questioned from media
    □ Applicable   √ Not applicableNo media questioned for the Company in reporting periodIII. Non-operational fund occupation from controlling shareholders and its related party
    □ Applicable    √ Not applicableNo non-operational fund occupation from controlling shareholders and its related party in period.IV. Bankruptcy reorganization
    □ Applicable    √ Not applicableNo bankruptcy reorganization for the Company in reporting periodV. Assets transaction1. Purchase of assets
    □ Applicable    √ Not applicableNo purchase of assets for the Company in reporting period2. Assets sold□ Applicable √ Not applicableNo assets sold for the Company in reporting period3. Enterprise merger
    □ Applicable    √ Not applicableNo enterprise merger for the Company in reporting periodVI. Implementation and its influence of equity incentive plan
    □ Applicable    √ Not applicableNo implementation of equity incentive plan for the Company in reporting period
                                                                              深圳市特力(集团)股份有限公司 2014 年年度报告全文VII. Material related transactions1. Related transaction with daily operation concerned□ Applicable √ Not applicableNo related transaction with daily operation concerned for the Company in reporting period2. Related transactions by assets acquisition and sold
    □ Applicable    √ Not applicableNo related transactions by assets acquisition and sold for the Company in reporting period3. Main related transactions of mutual investment outside
    □ Applicable    √ Not applicableNo main related transactions of mutual investment outside for the Company in reporting period4. Contact of related credit and debt
    √ Applicable   □Not applicableWhether exist non-operating contact of related credit and debt or not√ Yes □ No
                                                                                         Balance of      Amount of the
                                                                         Non-operation                                       Balance at
                                                                                         period-begin       period
                            Related      Type of credit     Forming        al capital                                       period-end (in
    Related party                                                                           (in 10      occurrence (in
                          relationship      and debt         reason       occupying                                          10 thousand
                                                                                          thousand        10 thousand
                                                                              (Y/N)                                            Yuan)
                                                                                             Yuan)          Yuan)
                                         Debts payable
    SHENZHEN SDG             Parent                           Long-term
                                         to related                      No                      7,300                  0           7,300
    CO., LTD.                company                          loans
                                         party
                                         Debts payable
    SHENZHEN SDG             Parent                           Current
                                         to related                      No                      5,386               592            5,978
    CO., LTD.                company                          account
                                         party
                                         Debts payable
    SHENZHEN SDG             Parent                           Short-term
                                         to related                      No                      1,895                -3            1,892
    CO., LTD.                company                          loans
                                         party5. Other related transactions
    □ Applicable    √ Not applicableNo other related transactions for the Company in reporting period
                                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文VIII. Major contract and implantation1. Trusteeship, contract and leasing(1) Trusteeship
    □ Applicable     √ Not applicableNo trusteeship for the Company in reporting period(2) Contract
    □ Applicable     √ Not applicableNo contract for the Company in reporting period(3) Leasing
    □ Applicable     √ Not applicableNo leasing for the Company in reporting period2. Guarantee
    √ Applicable   □Not applicable
                                                                                                                     In ten thousand Yuan
                    Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
                     Related                       Actual date of
                                                                                                                               Guarante
                   Announcem                        happening                                                       Complete
    Name of the                 Guarantee                              Actual          Guarantee       Guarantee                  e for
                        ent                          (Date of                                                       implemen
    Company guaranteed               limit                            guarantee limit       type            term                    related
                    disclosure                        signing                                                         tation
                                                                                                                                 party
                       date                         agreement)
                                                                                                     Two years
                                                                                                     since the
                                                                                                     expired date
    Shenzhen Huari                                                                                       when debtor
    Toyota Auto-Sales       2014-03-17         4,900 2014-06-26                    4,900 Pledged         of the main    No         Yes
    Service Co., Ltd.                                                                                    contract
                                                                                                     completed
                                                                                                     debt
                                                                                                     maturitiesShenzhen Huari
    Toyota Auto-Sales       2014-03-17         1,800 2014-10-13                    1,800 Pledged         2015-10-13 No             YesService Co., Ltd.
                                                                   Total actual occurred external
    Total      approving        external
                                                            6,700 guarantee in report period                                         6,700guarantee in report period (A1)
                                                                   (A2)
                                                                   Total   actual     balance   ofTotal approved external guarantee
                                                            6,700 external guarantee at the end                                      6,700at the end of report period ( A3)
                                                                   of report    period (A4)
                                            Guarantee of the Company for the subsidiaries
                                                                              深圳市特力(集团)股份有限公司 2014 年年度报告全文
                     Related                       Actual date of
                                                                                                                                    Guarante
                   Announcem                        happening                                                            Complete
    Name of the                 Guarantee                              Actual            Guarantee         Guarantee                   e for
                        ent                          (Date of                                                            implemen
    Company guaranteed               limit                            guarantee limit         type              term                     related
                    disclosure                        signing                                                              tation
                                                                                                                                      party
                       date                         agreement)
                                                                                                         To the expireShenzhen Zung Fu
                                                                                                         date of joint
    Tellus Auto Service      2014-09-30        3,500 2007-04-17                   3,500 Pledged                              No         Yes
                                                                                                         ventureCo., Ltd.
                                                                                                         contract
    Shenzhen Zhongtian                                                                    Joint liability 2014-6-24 to
                         2014-05-07      30,000 2014-06-24                   30,000                                      No         No
    Industrial Co., Ltd.                                                                  guaranty           2024-6-23
    Shenzhen Zhongtian                                                                    General            To
                         2014-03-17        4,140                              4,140                                      No         No
    Industrial Co., Ltd.                                                                  guarantee          2016-6-25Shenzhen Auto
    Industry and Trade       2014-04-24        6,000 2013-11-06                   6,000 Pledged              2014-11-5       Yes        NoCorporationShenzhen Auto
                                                                                      General
    Industry and Trade       2014-08-20        1,000 2014-09-16                   1,000                      2015-9-16       No         No
                                                                                      guaranteeCorporation
                                                                    Total amount of actualTotal amount of approving
                                                                    occurred guarantee for
    guarantee for subsidiaries in                             44,640                                                                         44,640
                                                                    subsidiaries in report periodreport period (B1)
                                                                    (B2)
                                                                    Total balance of actualTotal amount of approved
                                                                    guarantee for subsidiaries at
    guarantee for subsidiaries at the                         44,640                                                                         38,640
                                                                    the end of reporting periodend of reporting period (B3)
                                                                    (B4)Total amount of guarantee of the Company( total two abovementioned guarantee)
    Total amount         of approving                                Total amount of                actual
    guarantee in         report period                        51,340 occurred guarantee in          report                                   51,340
    (A1+B1)                                                          period (A2+B2)
    Total amount           of approved                               Total balance of               actual
    guarantee at the       end of report                      51,340 guarantee at the end of        report                                   45,340
    period (A3+B3)                                                   period (A4+B4)The proportion of the total amount of actually guarantee in the
                                                                                                                                    236.29%net assets of the Company(A4+ B4)Including:Amount of guarantee for shareholders, actual controller and its
                                                                                                                                             0related parties(C)The debts guarantee amount provided for the guaranteed parties
                                                                                                                                         40,840whose assets-liability ratio exceed 70% directly or indirectly(D)Explanations on possibly bearing joint and several liquidating
                                                                    N/Aresponsibilities for undue guarantees (if applicable)Explanation on guarantee with composite way
                                                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文(1) Guarantee provided against regulations□ Applicable √ Not applicableNo guarantee outside against the regulation in Period3. Other material contracts
    √ Applicable   □Not applicable
                                       Book      Appraisal
                                      value of   value for
                                      amount      assets
                                                                          Base date
                                     involved involved                                             Trading                               Implemen
    Company                                                      Appraisal of assets                               Constitute
            Name of                      in         in                                             price (in                  Related      tation
    entered                   Date of                           agency (if evaluatio       Pricing                    related
            counterpa                 contract contract(i                                             10                     relationsh ended as
    into a                   signing                           applicable      n (if     principle               transactio
                rt                     (in 10      n 10                                            thousand                      ip       reporting
    contract                                                        )        applicable                           n     (Y/N)
                                     thousand thousand                                              Yuan)                                  period
                                                                              )
                                     Yuan) (if Yuan) (if
                                     applicable applicable
                                         )           )
                                                                                                                                         Project
    Shenzhen Shenzhen                                                                                                                        fund
    Zhongtian In-Long        2014-02-                                                      Market                                            40.04
                                                                                                     27,595 No
    Industrial Jian An       19                                                            pricing                                           million
    Co., Ltd. Co., Ltd.                                                                                                                      Yuan
                                                                                                                                         have paid
            Shanghai
            Underwrit                                                                                                                    No
    Shenzhen ing and                                                                                                                         money
    Tellus      Recomme 2014-06-                                                           Market                                            paid
                                                                                                      1,030 No
    Holding     ndation      20                                                            pricing                                           during
    Co., Ltd    Branch of                                                                                                                    the
            Huaxi                                                                                                                        Period
            Securities4. Other material transaction
    □ Applicable    √ Not applicableNo other material transactions for the Company in reporting periodIX. Implementation of commitment1. Commitments made by the Company or shareholders holding above 5% shares of the Company inreporting period or extending to reporting period.√ Applicable □Not applicable
                                                                                                   Commitment Commitment
    Commitments           Accepter                            Contents                                                                 Implementation
                                                                                                      time              period
                                                                       深圳市特力(集团)股份有限公司 2014 年年度报告全文
                        (I) Commitments during the work of Share Merger
                        Reform of the Company:
                        1. Commitments on Lock-up period
                        (1) In     accordance with     the Measures       for the
                        Administration of the Share Merger Reform of Listed
                        Companies, SDG would abide by the various laws,
                        regulations and rules, and perform its statutory
                        commitment duty.
                        (2)   Apart     from   the   above-mentioned     statutory
                        commitment, SDG also made the following special
                        commitment: with 36 months since the day the reform
                        plan starts to take effect, SDG would not list at
                        Shenzhen Stock Exchange and sell the shares of Tellus it
                        held (except for the shares used to promote the
                        administration level of Tellus).
                        (3) The administration level would abide by the laws,
                        regulations and rules, and perform its statutory
                        commitment duty.
                        (4) SDG made the commitment: “The Promiser hereby
                        promises that, if the Promiser failed to fulfill its
                        commitment or not fully fulfill its commitment, it wouldCommitments for
                        compensate other shareholders for their losses suffered
    Share Merger      SDG                                                                2005-12-25   Long-term   Implementing
                        thereafter”.Reform
                        (5) SDG declared: “The Promiser would dutifully fulfill
                        its commitments and shoulder corresponding legal
                        responsibilities. The Promiser would transfer the shares
                        held by it only if the assignee agree and have the ability
                        to shoulder the commitment responsibility.”
                        2. Special commitment concerning the incentive
                        mechanism
                        In order to effectively boost the core management level
                        and business backbones for long, SDG would take out
                        its shares, not exceeding 10% in total number after the
                        Share Merger Reform, and apply them to the boost of
                        the administration level. The shares would be sold to the
                        Companys administrative level over 3 years, with the
                        selling price being the net asset value per share audited
                        during the period nearest to the implementation. Before
                        the implementation of the promoting plan by share
                        selling each year, the administration level must prepay
                        the Company a risk responsibility fund, i.e. 20% of the
                        planned selling price; Should the work of the
                        performance examination set by the Board failed to be
                        finished, the paid risk responsibility fund would not be
                                                                        深圳市特力(集团)股份有限公司 2014 年年度报告全文
                           refunded and shall be owned by the Company. Detailed
                           rules concerning the limitations on the administration
                           level, such as the subscription conditions and risk
                           responsibility fund, and boost plans would be set by the
                           Board and submitted to relevant departments for
                           approval. The implementation of the shares for
                           promoting would be conducted strictly according to
                           relevant laws and regulations, and the circulation
                           conditions of these shares would be in conformity with
                           relevant regulations set by the Shenzhen Stock
                           Exchange.
                           3. Relevant expenses of this Share Merger Reform of
                           Tellus would be paid by SDG.
                           SDG, the controlling shareholder of the Company, made
                           a special commitment of incentive mechanism in Share
                           Merger Reform. After that SASAC and Ministry of
                           Finance jointly issued a “Trial Approach of Equity
                           Incentive for State-Owned Listed Companies”, and
                           CSRC issued the “Incentive Management on Shares of
                           Listed Companies (Trial)”, after comparison, the above
                           mentioned commitments made by SDG are out of the
                           relevant    regulations   and     requirement,   relevant
                           commitments are not implemented as a result. On 26
                     SDG                                                               2014-06-26   2016-6-30   Implementing
                           June 2014, the Company actively communicating with
                           SDG, and promised that on the premise of subjecting to
                           applicable laws and regulations and supervision
                           requirements, continues to support the Company
                           promote a long-term incentive plan as soon as possible
                           in stead of the commitments made in share merger
                           reform, and complete the long-term incentive plan
                           before 30 June 2016. At that time, the long-term
                           incentive plan shall be implemented after submit for
                           deliberation in General MeetingCommitments inreport ofacquisition orequity changeCommitments inassets replacementCommitments makein Initial publicoffering orre-financing
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文Other commitmentsfor minorityshareholdersCommitment
                         Ycompleted on timeDetail reasons forun-complement and
                         N/Afurther plan (ifapplicable)2. Concerning assts or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast□ Applicable √ Not applicableX. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
    Name of domestic accounting firm                      Ruihua Certified Public Accountants (LLP)Remuneration for domestic accounting firm (in 10
                                                      55thousand Yuan)Continuous life of auditing service for domestic
                                                      1accounting firm
    Name of domestic CPA                                  Yuan Longping, Qin ChangmingWhether re-appointed accounting firms in this period or not
    □ Yes   √NoAppointment of internal control auditing accounting firm, financial consultant or sponsor
    √ Applicable      □Not applicableIn reporting period, Ruihua Certified Public Accountants (LLP) was engaged by the Company as audit institutefor internal control, remuneration amounting as RMB 240,000.The Company engaged Huaxi Securities Co., Ltd. as the sponsor due to private placement in the Period, sponsorfee amounting as 2 million Yuan.XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for“Qualified Opinion” from the CPA□ Applicable √ Not applicableXII. Penalty and rectification□ Applicable √ Not applicableNo penalty and rectification for the Company in reporting period.
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文XIII. Particular about suspended and delisting after annual report disclosed□ Applicable √ Not applicableXIV. Explanation on other significant events
    □ Applicable    √ Not applicableNo explanation on other significant events for the Company in reporting period.XV. Significant event of subsidiary of the Company□ Applicable √ Not applicableXVI. Issuance of corporate bonds□ Applicable √ Not applicable
                                                                      深圳市特力(集团)股份有限公司 2014 年年度报告全文
            Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in shares1. Changes in shares
                                                                                                                              In Share
                                  Before change              Increase/decrease in this time (+ , - )                 After change
                                                                          Capitalizat
                                                                 Bonus       ion of
                              Amount       Ratio     New issue                           Other         Subtotal   Amount      Ratio
                                                                 share       public
                                                                            reserve
                              14,587,05                                                                           14,587,05
    I. Restricted shares                        6.62%                                                                               6.62%
                                       6                                                                                 6
    2. State-owned corporation 14,587,05                                                                              14,587,05
                                            6.62%                                                                               6.62%
    shares                                 6                                                                                 6
                              205,694,5                                                                           205,694,5
    II. Un-restricted shares                   93.38%                                                                              93.38%
                                      44                                                                                44
                              179,294,5                                                                           179,294,5
    1. RMB ordinary shares                     81.39%                                                                              81.39%
                                      44                                                                                44
    2. Domestically listed        26,400,00                                                                           26,400,00
                                            11.98%                                                                             11.98%
    foreign shares                         0                                                                                 0
                              220,281,6                                                                           220,281,6
    III. Total shares                          100.00%                                                                            100.00%
                                      00                                                                                00Reasons for share changed□ Applicable √ Not applicableApproval of share changed□ Applicable √ Not applicableOwnership transfer of share changed□ Applicable √ Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period□ Applicable √ Not applicableOther information necessary to disclose for the Company or need to disclosed under requirement from security regulators□ Applicable √ Not applicable2. Changes of restricted shares□ Applicable √ Not applicable
                                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文II. Securities issue and listing1. Previous security offering in latest three years at period-end
    □ Applicable     √ Not applicable2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
    □ Applicable     √ Not applicable3. Existing internal staff shares□ Applicable √ Not applicableIII. Shareholders and actual controller1. Number of shareholders of the Company and share-holding
                                                                                                                          In Share
                                                                                         Total preference
                                             Total common                                shareholders with
    Total common                                 shareholders at end                         voting rights
                                                     th
    shareholders in                       14,065 of the 5 trading day                14,395 recovered at end of                         0
    reporting period-end                         before annual report                        reporting period (if
                                             disclosed                                   applicable) (found in
                                                                                         note8)
                         Shareholding of shareholders with over 5 percent shares hold and top 10 shareholders
                                                     Total                                        Number of shares pledged/frozen
                                                                          Amount
                                                   sharehold                    Amount of
                                        Proportio          Changes       of
    Full name of          Nature of        n of    ers at                        unrestricte
                                                           in report restricted
    Shareholders         shareholder      shares the end of                       d shares         State of share      Amount
                                          held              period     shares
                                                  report                           held
                                                                        held
                                                  period
    SHENZHEN            State-owned                    145,870,5             14,587,05 131,283,5
                                          66.22%
    SDG CO., LTD.       corporation                              60                  6          04CCB- MorganStanley Huaxin
    Factor Selected     Other                   0.72% 1,582,648                          1,582,648Strategy StockInvestment Fund
    FISRT               Foreign
                                            0.48% 1,063,845                          1,063,845
    SHANGHAI            corporation
                                                                             深圳市特力(集团)股份有限公司 2014 年年度报告全文SECURITIESLTD.
                   Domestic nature
    Ma Ning                                           0.43%     940,000                         940,000
                   personGuoyuan
    Securities         Foreign
                                                  0.40%     891,582                         891,582Brokerage (Hong corporationKong) Co., Ltd.
                   Domestic nature
    Jiang Youhua                                      0.39%     853,638                         853,638
                   person
                   Domestic nature
    Du Shuangxiu                                      0.32%     700,297                         700,297
                   personNational Councilfor Social
                   Other                          0.25%     548,901                         548,901SecurityFund-408
                   Domestic nature
    Ling Fengyuan                                     0.24%     520,358                         520,358
                   person
                   Domestic nature
    Wang Jianguang                                    0.21%     470,594                         470,594
                   personStrategy investors or generalcorporation comes top 10
                                              N/Ashareholders due to rights issue (ifapplicable) (see note3)
                                              Among the top ten shareholders, there exists no associated relationship between the
                                              state-owned legal persons shareholders Shenzhen SDG Co., Ltd and other shareholders, and
    Explanation        on           associated
                                              they do not belong to the consistent actionist regulated by the Management Measure of
    relationship   among      the    top    ten
                                              Information Disclosure on Change of Shareholding for Listed Companies. For the othershareholders or consistent action
                                              shareholders of circulation share, the Company is unknown whether they belong to the
                                              consistent actionist.
                                       Particular about top ten shareholders with un-restrict shares held
                                                                                                                  Type of shares
           Shareholders name                   Amount of unrestricted shares held at end of Period
                                                                                                               Type           Amount
                                                                                                      RMB ordinary
    SHENZHEN SDG CO., LTD.                                                                 131,283,504
                                                                                                      sharesCCB- Morgan Stanley Huaxin Factor
                                                                                                      RMB ordinary
    Selected Strategy Stock Investment                                                        1,582,648
                                                                                                      sharesFund
    FISRT SHANGHAI SECURITIES                                                                             Domestically
                                                                                          1,063,845
    LTD.                                                                                                  listed foreign
                                                                        深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                                                                 shares
                                                                                                 RMB ordinary
    Ma Ning                                                                                940,000
                                                                                                 shares
                                                                                                 DomesticallyGuoyuan Securities Brokerage (Hong
                                                                                       891,582 listed foreignKong) Co., Ltd.
                                                                                                 shares
                                                                                                 RMB ordinary
    Jiang Youhua                                                                           853,638
                                                                                                 shares
                                                                                                 RMB ordinary
    Du Shuangxiu                                                                           700,297
                                                                                                 shares
    National Council for Social Security                                                             RMB ordinary
                                                                                       548,901
    Fund-408                                                                                         shares
                                                                                                 Domestically
    Ling Fengyuan                                                                          520,358 listed foreign
                                                                                                 shares
                                                                                                 Domestically
    Wang Jianguang                                                                         470,594 listed foreign
                                                                                                 shares
                                          Among the top ten shareholders, there exists no associated relationship between theExpiation on associated relationship
                                          state-owned legal persons shareholders Shenzhen SDG Co., Ltd and other shareholders, andor consistent actors within the top 10
                                          they do not belong to the consistent actionist regulated by the Management Measure ofun-restrict shareholders and between
                                          Information Disclosure on Change of Shareholding for Listed Companies. For the othertop 10 un-restrict shareholders and
                                          shareholders of circulation share, the Company is unknown whether they belong to thetop 10 shareholders
                                          consistent actionist.Explanation on shareholdersinvolving margin business about top
    ten common shareholders with              N/Aun-restrict shares held(if applicable)(see note4)Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreementdealing in reporting period□ Yes √ NoThe top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-backagreement dealing in reporting period.2. Controlling shareholder of the CompanyCorporation
                              Legal rep./person
    Controlling shareholder                           Date established Organization code    Register capital        Main business
                              in charge of unit
                                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                                                                               Development and
                                                                                                               operation of real estate;
                                                                                                               domestic business,
                                                                                                               material supply and
                                                                                                               marketing industry
                                                                                                               (excluding monopolized
                                                                                                               commodity and
                                                                                                               commodity under
                                                                                                               special governmentSHENZHEN SDG CO.,
                              Zhang Junlin        1982-06-20         192194195           RMB 1,582,820,000 control); economicLTD.
                                                                                                               information(excluding
                                                                                                               restricted projects);
                                                                                                               import & export
                                                                                                               business; industrial
                                                                                                               transportation, tourism,
                                                                                                               financial trust, issue
                                                                                                               securities (license shall
                                                                                                               required for the above
                                                                                                               mentioned business)
                              During the “twelve-five” period, the Group took the high-end travel and characteristic real estate as the
                              leading industry, optical communications as pillar industry, in line with the principle of “integration of
                              resource optimization, improvement of strategy transformation and development of industry leaping”,
                              playing the resources advantage totally, developed optical communications steady by combining industry
    Future      development
                              operation and capital operation closely; energetically develop high-end tourism and characteristic realstrategy
                              estate, deepen to carried out innovation of business mode and management mode, re-shaping the brand
                              and EI of SDF, trying to create a famous brand enterprise Group, which has a strong competitive, core
                              with high-end tourism, and owns harmonious development of characteristic real estate and optical
                              communications.
    Operation             result, In 2014, SDG continues to maintain a stable growth in operation, achieved operation revenue of RMB
    financial   status,    cash 4.73 billion for the whole year, 19.7 percent up over same period of last year; total profit amounting as
    flow etc.                     RMB 890 million with 27.1 percent up year-on-year.
    Equity      of        otherforeign/domestic listedcompany that controlled Except for the equity of the Company hold by SDG, 46.58 percent equity of Shenzhen SDG Informationby and have joint-stock Co., Ltd. (short form”SDGI”, code: 000070) were held by SDG; and holds 1.31 percent equity of Sichuan
    from          controlling Jinlu Group Co., Ltd. (short form”Jinlu Group”, code: 000510)shareholder in reportingperiodChanges of controlling shareholder in reporting period□ Applicable √ Not applicableNo changes of controlling shareholder for the Company in reporting period
                                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文3. Actual controller of the CompanyCorporation
                             Legal rep./person        Date        Organization
    Actual controller                                                               Register capital            Main business
                              in charge of unit    established         codeShenzhen MunicipalPeoples GovernmentState-owned Assets
                            Zhang Xiaoli          2003-07-30     K31728067        Not applicable          Not applicableSupervision andAdministrationCommissionFuture development
                            Not applicablestrategyOperation results,financial status and cash Not applicableflow etc.Equity of otherforeign/domestic listedcompany that controlled Not applicableby actual controller inreporting periodChanges of actual controllers reporting period
    □ Applicable      √ Not applicableNo changes of actual controllers for the Company in reporting periodProperty right and controlling relationship between the actual controller and the Company is as follow:
       Shenzhen Municipal Peoples Government State-owned Assets Supervision and Administration Commission
                            100%
                  Shenzhen Investment Holdings Co., Ltd.
                                                                       43.3%
                             17.69%
                                                  Shenzhen SDG Co., Ltd.
                                                  66.22%
                                             Shenzhen Tellus Holding Co., Ltd.Actual controller controlling the Company by entrust or other assets management
                                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文□ Applicable √ Not applicable4. Particulars about other legal person shareholders with over 10% shares held□ Applicable √ Not applicableIV. Share holding increasing plan proposed or implemented in reporting period fromshareholder of the Company and its concerted action person□ Applicable √ Not applicableAs far as the Company known, there are no shareholders of the Company and their concerted action people propose or implementoverweight in the Period.
                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                      Section VII. Preferred Stock
    □ Applicable   √ Not applicableThe Company had no preferred stock in the reporting.
                                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文
           Section VIII. Particulars about Directors, Supervisors, Senior Executives
                                                     and EmployeesI. Changes of shares held by directors, supervisors and senior executives
                                                                                            Increasing Decreasing
                                                                                 Shares                                Shares
                                                                                            shares held shares held
                          Working                         Start dated End date   held at                               held at
                 Title                   Sex   Age         of office of office                in this     in this
    Name                      status                                             period-beg                             period-end
                                                             term      term
                                                                                              period      period
                                                                               in (Share)                              (Share)
                                                                                             (Share)     (Share)
                         Currently                        2014-04-0 2015-06-0
    Lv Hang     Chairman                 M               54
                         in office                        9         5
                         Currently                        2015-04-0 2015-06-0
    Ding Hui    GM                       M               42
                         in office                        1         5
            Chairman
            of
    Guan                     Currently                        2012-06-0 2015-06-0
            Supervisor               M               61
    Zhicai                   in office                        6         5
            y
            Committee
    Ren         Deputy       Currently                        2012-06-0 2015-06-0
                                     M               52
    Yongjian    GM           in office                        6         5
    Yang                     Currently                        2015-04-0 2015-06-0
            CFO                      F               43
    Jianping                 in office                        1         5
            Deputy       Currently                        2012-06-0 2015-06-0
    Feng Yu                              M               48
            GM           in office                        6         5
    Yao         Deputy       Currently                        2014-08-0 2015-06-0
                                     M               52
    Xiongbin    GM           in office                        8         5
            Deputy       Currently                        2015-04-0 2015-06-0
    Li Ming                              M               53
            GM           in office                        1         5
    Wang                     Currently                        2012-06-0 2015-06-0
            Supervisor               M               57
    Guangye                  in office                        6         5
    Ke                       Currently                        2012-06-0 2015-06-0
            Supervisor               F               47
    Wensheng                 in office                        6         5
                         Currently                        2012-06-0 2015-06-0
    Yu Lei      Director                 F               47
                         in office                        6         5
    Jiang                    Currently                        2013-03-2 2015-06-0
            Director                 M               42
    Hongjun                  in office                        8         5
    Li Miao     Director     Currently M                 54 2014-05-1 2015-06-0
                                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文
                           in office                            6         5
    Liu            Independe Currently                              2012-06-0 2015-06-0
                                       F                   61
    Hongling       nt Director in office                            6         5
               Independe Currently                              2012-11-1 2015-06-0
    Ji Huibin                              M                   45
               nt Director in office                            4         5
    Wei            Independe Currently                              2012-06-0 2015-06-0
                                       M                   43
    Shaohui        nt Director in office                            6         5
    Zhang                      Office                               2012-06-0 2014-04-0
               Chairman                M                   52
    Ruili                      leaving                              6         9
               Director,   Office                               2012-06-0 2015-04-0
    Luo Bojun                              M                   53
               GM          leaving                              6         1
               Director,   Office                               2012-06-0 2015-04-0
    Fu Bin                                 M                   53
               CFO         leaving                              6         1
    Zhang                      Office                               2012-06-0 2014-04-2
               Director                M                   56
    Jianmin                    leaving                              6         2
               Standing
                           Office                               2013-03-1 2014-04-0
    Guo Jian       deputy                  M                   50
                           leaving                              2         9
               GM
    Guo            Deputy      Office                               2012-06-0 2014-06-3
                                       M                   50
    Dongri         GM          leaving                              6         0
    Total               --          --         --         --            --         --               0             0    0          0II. Post-holdingMajor working experience of directors, supervisors and senior executive at the present in latest five years
        Name                               Main work experience and holding the post or taking part-time job
    Lv Hang              He successively served as chairman, GM and deputy secretary of the general branch in Shenzhen SDG Xiaomeisha
                     Tourism Center; Director and GM of Shenzhen Tellus Holding Co., Ltd.; GM of Shenzhen SDG Property
                     Management Co., Ltd.; now he serves as chairman of the Company.
    Ding Hui             He successively served as GM and deputy chairman of Huali Company; chief of office of SDG and serves as GM of
                     the Company currently.
                     He ever took the posts of Deputy Manager of Planning & Financial Dept. and Manager of Auditing Dept. in
                     Shenzhen Special Economic Zone Development (Group) Company; Director and CFO of the Company. He now
                     acts as Deputy General Manager of the Company and concurrently holds the post of Director of Shenzhen AutoRen Yongjian
                     Industry and Trade Corporation (the controlling subsidiary of the Company), Director of Shenzhen Tellus Xing
                     Investment Co., Ltd. (joint-venture of the Company) and Director of Shenzhen Tellus Gem Investment Co.,
                     Ltd.( joint-venture company of the Company).
    Yang Jianping        He successively served as GM of financial department of the Shenzhen SDG Information Co., Ltd.; now serves as
                     CFO of the Company
                     He ever took the Deputy General Manger of Shenzhen Xianke Real-estate Co., Ltd., Manager of InvestmentFeng Yu
                     Department of China Sports Group Industry Co., Ltd.; Director to the Office of General Manger of Shenzhen SDG
                                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文
                Co., Ltd; and Supervisor of the Company. Now, he acts as Deputy General Manager of the Company. Meanwhile, he
                serves as director of Shenzhen Auto Industry and Trade Corporation (the controlling subsidiaries of the Company),
                Shenzhen SD Huari Auto Enterprise Co., Ltd. (the controlling subsidiaries of the Company) and Director of
                Shenzhen Zung Fu Tellus Auto Service Co., Ltd. (associated company of the Company).
    Yao Xiongbin    He successively served as southern regional business project manager of Agile Property Holdings Limited, GM of
                Longgang CocoPark of the Shenzhen Galaxy Real Estate Operation Co., Ltd. and deputy GM of H.K. Nanhua
                Group Wanhong Xinghui Commerce Limited, now he serves as deputy GM of the Company.
    Li Ming         He successively served as deputy GM of Shenzhen SDG Real Estate Co., Ltd. and serves as deputy GM of the
                Company currently
                She ever took the post of secretary of international corporation dept. of Vocational Education Training Center of
                Chaoyang District, Beijing, the deputy director, director and deputy chief of Luohu Branch of Shenzhen Home Land
    Yu Lei          Planning Bureau, the vice director and director of State-owned Assets Supervision and Administration Commission
                of Peoples Government of Shenzhen; now she serves as deputy GM of SHENZHEN SDG CO., LTD. and Director
                of the Company.
    Li Miao         He successively served as chief accountant and director assistant of the financial center of the HQ of Shenzhen
                Press Group, and CFO of Jinfengfang Property Development Co., Ltd., now he serves as director and cfo of the
                Shenzhen SDG Co., Ltd.,-controlling shareholder of the Company, and serves as supervisor of Shenzhen Investment
                Holding Co., Ltd.
                He served as teaching assistant in Jiangsu University, translator in Jiangsu Engineering Technology Institute,
                director of foreign affair of Hainan Yangpu Development Corp., GM assistant of Shenzhen New Technology
                Enterprise, project manager of L.A.Enterprises(USA),Inc., executive director of Singapore GITIC International Pte.
                Ltd., director and deputy GM of Grand Success (Hong Kong) Limited, chief economist of Shenzhen OceanusJiang Hongjun
                Group, Chairman assistant of Guorong Hongshan Entergy Investment Co., Ltd., inspector-general of Chuang Yi
                Group, independent director of the Company and deputy director of entperise II dept. of SDG; now he serves as
                director of enterprise I dept. of SHENZHEN SDG CO., LTD, controlling shareholder of the Company and Director
                of the Company.
                She ever took the post of Assistant Accountant of Financial Department of Tianjin Components Industries
                Corporation, Senior Staff of Tianjin Electronic Instruments Management Bureau, Deputy Head of Tianjin
    Liu Hongling    Zhonghuan Certified Public Accountants, CFO of Shenzhen Yongxing Industrial and Commercial Corporation,
                Head of Shenzhen Weiming Appraisal Institute, and Chairman of Shenzhen Sinocoms Appraisal Co., Ltd. Now she
                serves as deputy GM of Beijing Jimkai Sinocoms Appraisal Co., Ltd. and independent director of the Company.
                He ever took the post of project manager, director of engineering dept. deputy GM and GM of Shenzhen Jianyi
                Municipal Engineering Co., Ltd; director of engineering dept. and director of operation dept. of Shenzhen JianyiJi Huibin
                Industrial Co., Ltd. and deputy GM of Pang Yuan Real Estate Development Co., Ltd. Now he works in Shenzhen
                International Logistic Development Co., Ltd. and serves as independent director of the Company
                He ever took post of law assistant and full-time attorney of Guangdong Shu Jun Law Firm. Now he serves as senior
    Wei Shaohui     partner of Guangdong Shu Jun Law Firm, and independent director of the Company; meanwhile serves as
                independent director of Longhao Tiandi Co., Ltd. and Shenzhen Click Technology Co., Ltd. respectively.
                He ever took the post of Workers, Head of Workshop Section, and Secretary Of Youth League Committee in
                state-owned 5501 plant, and worked in Shenyang Agricultural Machinery Automotive Industry Bureau and
    Guan Zhicai     Shenyang Automotives Industry General Corporation. He also took the posts of Deputy Officer, Deputy Head and
                Head of Enterprise Management Department, Director of Reform Office, Director of the Board, Vice Secretary
                General of the Board of Shenyang Jinbei Automotive Company Limited; Secretary of Party Committee and Deputy
                                                                       深圳市特力(集团)股份有限公司 2014 年年度报告全文
                  GM of Shenzhen Radio Industry and Trade Corporation, Deputy GM of Shenzhen Liming Industry Corporation;
                  Deputy GM of Shenzhen SDG Liming Group Co., Ltd., Vice Chairman and GM and Secretary of Party Committee
                  of Shenzhen SDG Liming Group Co., Ltd., Chairman and Secretary of Party Committee of Shenzhen SDG Liming
                  Group Co., Ltd. Now he acts as Chairman of Supervisory Committee of the Company.
                  He ever took the post of Manager of Financial Dept in Machinery And Equipment Import And Export Company,
                  Deputy Manager of Shenzhen SDG Co., Ltd. Serves as staff supervisor, secretary of supervisory committee andZhang Xinliang
                  chief of the auditing supervision department of Shenzhen SDG, and supervisro of Shenzhen International Enterprise
                  Co., Ltd. and supervisor of the Company recently
                  He ever took the Business Deputy General Manage of HR Department of Shenzhen SDG Co., Ltd., Deputy Team
                  Leader in Work Team of Shenzhen Tefa Huatong Packaging Co., Ltd. and Deputy Minister of HR Department ofFu Chunlong
                  Shenzhen SDG Co., Ltd.Now, he is the Deputy Minister of HR Department of Shenzhen SDG Co., Ltd. and
                  Supervisor of the Company.
                  He ever took the post of Deputy General Manger of Financial Department and Deputy General Manager of Auditing
                  Department in Shenzhen Tellus Holding Co., Ltd. Now, he acts as the Manager of Auditing Department in Shenzhen
                  Tellus Holing Co., Ltd and Employee Supervisor of the group. Meanwhile, he serves as supervisor of Shenzhen
                  Auto Industry and Trade Corporation (the controlling subsidiaries of the Company), supervisor of Shenzhen Tellus
                  Xinyongtong Automobile Development Co., Ltd. (the controlling subsidiaries of the Company) and of Shenzhen SDWang Guangye Tellus Property Management Co., Ltd. (the controlling subsidiaries of the Company); and serves as supervisors in
                  the follow units as Shenzhen Xingyongtong Auto Vehicle Inspection Equipment Co., Ltd. (the controlling
                  subsidiaries of the Company), Shenzhen SD Tellus Real Estate Co., Ltd. (the controlling subsidiaries of the
                  Company), Shenzhen Tellus Real Estate Exchange Co., Ltd. (the controlling subsidiaries of the Company),
                  Shenzhen Xinglong Machinery Module Co., Ltd. (affiliated company of the Company) and Shenzhen Tellus Gem
                  Investment Co., Ltd. (joint-venture of the Company) respectively.
                  He ever acts as the teacher in School of Guangdong Foreign Trade, major accountant of Shenzhen SDG Co., Ltd.
                  and deputy GM and GM of the Accounting and Financial Dept. of the Company. Now, he acts as the GM of
                  Accounting and Financial Dept. and staff supervisor of the Company, director of Shenzhen Tellus Xinyongtong
                  Auto Development Co., Ltd., director of the Shenzhen Zhongtian Industrial Co., Ltd.(controlling subsidiary of the
    Ke Wensheng       Company), and Shenzhen Teyao Investment Development Co., Ltd.; serve as the supervisor of Shenzhen Tellus Real
                  Estates Exchange Co., Ltd. (the controlling subsidiaries of the Company), Shenzhen SD Tellus Property
                  Management Co., Ltd. (the controlling subsidiaries of the Company), Shenzhen Telihang Investment Co.,
                  Ltd.(joint-venture of the Company), Shenzhen Dongfeng Automobile Co., Ltd. And Shenzhen Auto Industry
                  Imp-Exp Co., Ltd. (joint-venture of the Company) respectively.Post-holding in shareholders unit
    √ Applicable   □Not applicable
                                                                                                                 Receiving
                                                                             Office term     Office term
    Name                Name of shareholders units            Position                                      remuneration from
                                                                              start from       ended
                                                                                                             shareholders units
    Yu Lei           SHENZHEN SDG CO., LTD.                     Deputy GM                                       Y
    Li Miao          SHENZHEN SDG CO., LTD.                     CFO                                             Y
                                                            Director of
    Jiang Hongjun SHENZHEN SDG CO., LTD.                        Enterprise I                                    Y
                                                            dept.
                                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                             Director of
                                                             audit &
    Zhang Xinliang SHENZHEN SDG CO., LTD.                                                                                   Y
                                                             supervision
                                                             department
                                                             Director of
    Fu Chunlong      SHENZHEN SDG CO., LTD.                      H&R                                                        Y
                                                             departmentPost-holding in other unit
    √ Applicable   □Not applicable
                                                                                                                            Receiving
                                                                                  Office term       Office term
    Name                      Name of other units              Position                                                remuneration from
                                                                                   start from           ended
                                                                                                                            other units
                 Beijing Jimkai Sinocoms Appraisal Co.,
    Liu Hongling                                                 Deputy GM                                                  Y
                 Ltd
                                                             Senior
    Wei Shaohui      Guangdong Shu Jun Law Firm                                                                             Y
                                                             partner
                 Shenzhen International Logistic
    Ji Huibin                                                                                                               Y
                 Development Co., Ltd.III. Remuneration for directors, supervisors and senior executivesDecision-making procedures, determine basis and actual payment of remuneration for directors, supervisors and senior executivesThe Company strictly in accordance with relevant regulations of “Management System of Human Resources ofTellus Group” and “Remuneration Management Plan of Tellus Group (Trial)” continues to perfect inspectionrules and seriously exercise performance evaluation, carry out remuneration based on evaluation results.Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                                        In ten thousand Yuan
                                                                                                                Total
                                                                                            Total                           Remuneration
                                                                                                           remuneration
                                                                      Post-holding      remuneration                            actually
    Name              Title             Sex           Age                                                 obtained from
                                                                         status         obtained from                         obtained at
                                                                                                           shareholders
                                                                                        the Company                           period-end
                                                                                                                unit
                                                                    Currently in
    Lv Hang          Chairman          M                           54                               24.59                                 24.59
                                                                    office
                                                                    Currently in
    Ding Hui         GM                M                           42                                     0                                     0
                                                                    office
                 Chairman of
                                                                    Currently in
    Guan Zhicai      supervisory       M                           61                               62.96                                 62.96
                                                                    office
                 committee
    Ren Yongjian     Deputy GM         M                           52 Currently in                      56.2                                  56.2
                                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                                     office
                                                                     Currently in
    Yang Jianping CFO                   F                           43                                    0                       0
                                                                     office
                                                                     Currently in
    Feng Yu          Deputy GM          M                           48                                  56.2                    56.2
                                                                     office
                                                                     Currently in
    Yao Xiongbin     Deputy GM          M                           52                               20.59                     20.59
                                                                     office
                                                                     Currently in
    Li Ming          Deputy GM          M                           53                                    0                       0
                                                                     office
                                                                     Currently in
    Wang Guangye Supervisor             M                           57                               28.33                     28.33
                                                                     office
                                                                     Currently in
    Ke Wensheng      Supervisor         F                           47                               27.37                     27.37
                                                                     office
                 Independent                                         Currently in
    Liu Hongling                        F                           61                                    5                       5
                 Director                                            office
                 Independent                                         Currently in
    Ji Huibin                           M                           45                                    5                       5
                 Director                                            office
                 Independent                                         Currently in
    Wei Shaohui                         M                           43                                    5                       5
                 Director                                            office
    Zhang Ruili      Chairman           M                           52 Office leaving                   48.8                    48.8
    Luo Bojun        Director, GM       M                           53 Office leaving                69.66                     69.66
    Fu Bin           Director, CFO M                                53 Office leaving                59.22                     59.22
                 Standing
    Guo Jian                            M                           50 Office leaving                31.63                     31.63
                 deputy GM
    Guo Dongri       Deputy GM          M                           50 Office leaving                   40.1                    40.1
    Total              --                 --             --                  --                540.65                0   540.65Delegated equity incentive for directors, supervisors and senior executives in reporting period□ Applicable √ Not applicableIV. Post-leaving and dismissals for directors, supervisors and senior executives
      Name                  Title               Type            Date                                       Reasons
    Lv Hang            Chairman             Be elected       2014-04-09                Nominated by largest shareholder
    Li Miao            Director             Be elected       2014-05-16                Nominated by largest shareholder
    Yao Xiongbin       Deputy GM            Engagement       2014-08-08                Nominated by GM of the Company
    Zhang Ruili        Chairman             Office leaving   2014-06-05                Change of work
    Zhang Jianmin      Director             Office leaving   2014-05-16                Change of work
                                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文
                    Standing deputy
    Guo Jian                                Office leaving   2014-04-09            Change of work
                    GM
                    Deputy GM,
    Guo Dongri          secretary of the    Office leaving   2014-06-30            Change of work
                    BoardV. Changes of core technology team or key technicians in reporting period (not includingdirectors, supervisors and senior executives)Not applicableVI. Employees of the Company
                  Employee in-post                                                 527
    Retired employees expenses borne by the                                        236
                      Company
                                                 Professional composition
        Administration staff (management)                                           73
                    Financial staff                                                 48
                     Technician                                                     98
                   Sales personnel                                                  41
                 Production personnel                                              139
                         Others                                                    128
                         Total                                                     527
                                                 Educational background
                        Master                                                      14
                   Bachelor degree                                                  73
                    Junior college                                                 117
           Technical secondary school                                               55
                         Other                                                     268
                         Total                                                     527
                                                             深圳市特力(集团)股份有限公司 2014 年年度报告全文Remuneration policy: The Company strictly in accordance with relevant regulations of “Management System ofHuman Resources of Tellus Group” and “Remuneration Management Plan of Tellus Group (Practice)” ,formulated inspection rules and seriously exercise performance evaluation, carry out remuneration based onevaluation results.Training planning: the Company always attaches importance to the training and development work for employees;create innovation into part of the long-term development strategy of the Company. Combine with current situationof the Company, and take annual planning, position requirement and responsibility as well as enterprisesdevelopment needs into consideration, the Company formulated a systematic training plans and talent cultivationprojects; strengthen training works in aspect of multi-tiered, multi-channel, multi-field and multi-form, includinginduction training for new employees, business training for on-job employees, operation skill training for workersat the production line, upgrade training for manager, project development and risk control training, continues toimprove general quality for employees in order to achieve a win-win situation for the Company and employees.
                                                             深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                 Section IX. Corporate GovernanceI. Brief introduction about corporate governanceDuring the reporting period, the Company has been observing the Company Law, Securities Law and relevantrules issued by the CSRC, for the purpose of improving its legal person governance structure and standardizing itsoperation level. According to the Articles of Association, Procedure Rules of General Meeting, Procedure Rules ofBoard of Directors, Procedure Rules of Supervisory Committee, Working Rules of Independent Directors,Working Rules of General Manager and a series of rules and regulations, the Company maintained normalperformance of the duties and obligations of its general meeting, board of directors and supervisory committee.Each of its directors and supervisors can perform their duties earnestly. Its corporate governance conformed to therequirements of certain regulation documents issued by the CSRC concerning corporate governance of listedcompany.In the reporting period, in line with requirement of internal control, the Company formulated governancemechanism as “Management System of Strategy Planning” with its actual condition to improve the internaldecision-making and operation mechanism and standardize legal person governance structure.Whether there are differences between the corporate governance and the "Company Law" and the relevantprovisions of China Securities Regulatory Commission□ Yes √ NoThere were no significant differences in corporate governance and the "Company Law" and the relevantprovisions of China Securities Regulatory Commission.The development of special activities for corporate governance, and establishment and implementation ofregistration and management system for inside information insider(I) Implementation of special activity in respect of corporate governance1. Pursuant to the Circular on Investor Protection Propaganda Activity of Listed Company (SZJGSZ(2012)No.60)issued by the securities regulatory bureau of Shenzhen, the Company carried out activities of investor protectionpropaganda and investors communication in many ways, such as set up a “Investor Protection” column inCompanys website, replying investors questions via the interactive platform of SSE and report documents etc.; tobuild understanding on the Company, hawking ideas of value investing to investors, leading investor to judge acompanys value in a reason way, improving the scientific of investor decision, and protect legal rights of theinvestors.2. On 6 November 2014, the Company organized 30 man-time in total of directors, supervisors, senior executivesand relevant employees participate in the Second Warning Education Fair of Insider Dealing held by ShenzhenSecurities Regulatory Bureau, strengthen the consciousness of discipline bewteen the directors, supervisors, seniorexecutives and relevant employees, enhance prevention and controlling of the insider dealing.3. In routine works, the Company answers investors questions timely through network platform, inquirytelephone from investors and investors interactive platform of Shenzhen Stock Exchange, communicate withsmall and medium-sized investors.(II) Determination and implementation of insider registration management systemThe Company has been paying great attention to standardization of insider information management. In order to
                                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文standardize its insider information management, strengthen insider information confidentiality and discloseinformation on a fair basis, according to relevant regulations, the Company considered and approved theInformation Disclosure Working System at the 5th extraordinary meeting of the 5th board on 20 July 2007. theInsider Information Registration System was considered and approved at the 2nd meeting of the 6th board on 27October 2009, pursuant to which, the Company expressly determined the principal organ in charge of informationdisclosure, the internal reporting system, scope of insider information, insider information management rules,filing registration methods and confidential obligations. The Company executed related policies in strict manner,took effective measures before disclosing material sensitive information, minimized the scope of insider, andmade propaganda in respect of insider confidential obligations, thus to prevent escape of insider information andinsider transaction.In 2014, the Company found that no insider took use of insider information to trade its stock out of line, and noinsider had received supervisory measures and administrative punishment from the regulatory authorities due toinvolvement in insider transaction.II. Annual general meeting and extraordinary general meeting held in reporting period1. Annual General Meeting in the report periodSession
                                                                                                Date of
    of          Date                     Name of meeting motion                   Situation                        Index of disclosure
                                                                                               disclosuremeeting
                          Deliberated the follow proposals as “Work Report
                          of the Board for year of 2013”; “Work Report of
                          Supervisory Committee for year of 2013”; ”Annual
                          Report of 2013” and “Summary”(Chinese and                                      “Resolution Notice of Annual
    Annual                    English Version); ”Profit Distribution Plan for year                             General Meeting of 2013” (No.:
    General                   of 2013”; “Financial Result Report of 2013”;                                   2013-028)       published       on
           2014-05-15                                                             Passed      2014-05-16
    Meeting                   “Financial Budget for year of 2014”; “Engagement                               Securities Times, Hong Kong
    of 2013                   of Audit Institution for year of 2014”; “Engagement                             Commercial Daily and Juchao
                          of Audit Institution for Internal Control of 2014”;                              Website (www.cninfo.com.cn)
                          Augment the director for the Company – Mr. Li
                          Miao; Guarantee provide for Credit to Auto Industry
                          and Trade Co.,2. Extraordinary general meeting in the report period
    Session of                                                                                   Date of
                       Date                 Name of meeting motion                Situation                        Index of disclosure
    meeting                                                                                   disclosure
                                                                                                            “Resolution Notice of First
    First                             Deliberated the follow: “Auditing Organ
                                                                                                            Extraordinary General Meeting of
    Extraordinary                     Changed for year of 2013”; “Shenzhen Auto
                                                                                                            2014” (No.: 2014-001) published
    General              2014-01-17 Industry and Trade Co., give up the Passed                    2014-01-18
                                                                                                            on Securities Times, Hong Kong
    Meeting         of                Pre-emptive Right of 75% equity of Shenzhen
                                                                                                            Commercial Daily and Juchao
    2014                              Dongfeng Automobile Co., Ltd. ”
                                                                                                            Website (www.cninfo.com.cn)
    Second                            Deliberated the follow proposals: Counter                                 “Resolution Notice of Second
                     2014-04-08                                                   Passed      2014-04-09
    Extraordinary                     guarantee offer to Zhongtian Company for                                  Extraordinary General Meeting of
                                                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文
    General                           41.4 million Yuan; Addition Director for 7th                                   2014” (No.: 2014-013) published
    Meeting         of                session of the Board – Mr. Lv Hang                                            on Securities Times, Hong Kong
    2014                                                                                                             Commercial Daily and Juchao
                                                                                                                 Website (www.cninfo.com.cn)
                                                                                                                 “Resolution Notice of ThirdThird
                                                                                                                 Extraordinary General Meeting ofExtraordinary
                                  Offer Guarantee to Zhongtain Company for                                       2014” (No.: 2014-032) published
    General              2014-05-23                                                            Passed   2014-05-24
                                  Loans from the Bank                                                            on Securities Times, Hong Kong
    Meeting         of
                                                                                                                 Commercial Daily and Juchao2014
                                                                                                                 Website (www.cninfo.com.cn)
                                  Deliberated the follow proposals: “Meet
                                  qualify of Private Placement”; deliberate Plan
                                  of the Private Placement by means of voting
                                  item by item; Pre-plan of the Private
                                  Placement of the Company;                  Feasibility
                                  Analysis     Report     of    the       Fund-raising
                                  Utilization of Private placement; Using                                        “Resolution Notice of FourthFourth
                                  Report for Previous Fund-raising; deliberate                                   Extraordinary General Meeting ofExtraordinary
                                  The    Company          entered         into     Share                         2014” (No.: 2014-034) published
    General              2014-06-03                                                            Passed   2014-06-04
                                  Subscription Agreement with Entry-into-force                                   on Securities Times, Hong Kong
    Meeting         of
                                  Conditions with the Purchaser by means of                                      Commercial Daily and Juchao2014
                                  voting item by item; The Private Placement                                     Website (www.cninfo.com.cn)
                                  with    Related       Transaction         Concerned;
                                  Amendment         Article     of        Association;
                                  Shareholder       Returning      Plan     for    Next
                                  Three-Year           (2014-2016);               Submit
                                  Authorization to the Board on private
                                  Placement to the General Meeting
                                                                                                                 “Resolution Notice of FifthFifth
                                  Deliberated the follow proposals: Relevant                                     Extraordinary General Meeting ofExtraordinary
                                  clause of Article of Association Revised;                                      2014” (No.: 2014-036) published
    General              2014-06-26                                                            Passed   2014-06-27
                                  proposal     of     “Business      Transformation                             on Securities Times, Hong Kong
    Meeting         of
                                  Development Guidelines of the Tellus”                                         Commercial Daily and Juchao2014
                                                                                                                 Website (www.cninfo.com.cn)
                                                                                                                 “Resolution Notice of SixthSixth
                                                                                                                 Extraordinary General Meeting ofExtraordinary
                                  Offer Guarantee to Auto Industry and Trade                                     2014” (No.: 2014-053) published
    General              2014-09-05                                                            Passed   2014-09-06
                                  Co. for Loans from the Bank                                                    on Securities Times, Hong Kong
    Meeting         of
                                                                                                                 Commercial Daily and Juchao2014
                                                                                                                 Website (www.cninfo.com.cn)
    Seventh                                                                                                          “Resolution Notice of Seventh
                                  Offer Guarantee to the Subsidiary for Loans
    Extraordinary        2014-10-16                                                            Passed   2014-10-17 Extraordinary General Meeting of
                                  from the Bank
    General                                                                                                          2014” (No.: 2014-059) published
                                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Meeting        of                                                                                      on Securities Times, Hong Kong
    2014                                                                                                   Commercial Daily and Juchao
                                                                                                       Website (www.cninfo.com.cn)3. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable √ Not applicableIII. Responsibility performance of independent directors in report period1. The attendance of Board meetings and general meeting for independent directors
                                          Attendance of Board meetings for independent directors
                        Times of Board
                                                                                                                          Absent the
                            meeting                                 Times of           Times of
    Name of independent                            Times of present                                         Times of     Meeting for the
                          supposed to                              attending by        entrusted
       director                                   in person                                             Absence      second time in a
                          attend in the                           communication        presence
                                                                                                                             row
                         report period
    Liu Hongling                              16                  4                   12               0               0 No
    Wei Shaohui                               16                  4                   12               0               0 No
    Ji Huibin                                 16                  4                   12               0               0 NoTimes presented in general meeting by
                                                                                                                                       8independent directorsExplanation of absent the Board Meeting for the second time in a row2. Objection for relevant events from independent directorsWhether independent directors come up with objection about companys relevant matters or not□ Yes √ NoIndependent directors has no objections for relevant events in reporting period3. Other explanation about responsibility performance of independent directorsWhether the opinions from independent directors have been adopted or not√ Yes □ NoExplanation on advice that accepted/not accepted from independent directorsIn accordance with relevant laws and regulation of “Company Law”, “Securities Laws”, “Listing Rules forStocks” and “System of Independent Directors”, independent directors focus on the normative of Companysoperation, performed responsibility independently and carry out their duties diligently; issued independent andfair-ness independent opinions on the audit institution, appointed in reporting period for non-public issue matters,financial report and internal control of the Company, related transactions, capital contact with related parties andexternal guarantee, profit distribution, amendment of article of association, director and senior executives changesas well as other events needs independent opinions issued, which perfected supervision mechanism for theCompany and play a corresponding role in protecting legal interest of the Company and whole shareholders.IV. Responsibility performance of subordinate special committee of the Board in reportperiod
                                                                      深圳市特力(集团)股份有限公司 2014 年年度报告全文The Company set three special committees under the board of directors, namely the strategic committee, the auditcommittee as well as the remuneration and examination committee.1. Duty performance of the strategic committeeThe strategic committee of the board is specially set according to general meeting resolution and the Articles ofAssociation, responsible for study on the long term development strategy and material investment decisions andraising its recommendations. The committee comprised of 5 directors, one of which is independent director, andthe committee is chaired by chairman of the board. During the reporting period, the committee performed itsduties according to the Working Rules of the Strategic Committee, with each of its members doing their best toperform the respective duties. The Committee takes part in the discussion on the operation development planningand related investment projects. Individual opinions and recommendations are encouraged. It emphasizes on legalperson governance and standardized operation. By raising measures to prevent operation risks, the committeeplays an important role in increasing the core competitiveness, strengthening scientific decisions and enhancingefficiency of material investment decision as well as the quality of decisions.2.During the reporting period, the committee performed its duties according to the Articles of Association andWorking Procedures of the Audit Committee. The committee pays close attention to the operation, finance andimplementation of standard internal control. It strengthens communications with the relevant responsibledepartments within the Company, and reviews the effective appraisal on the internal control and corporate riskmanagement by means of telecommunication, investigation and reporting. It reviews that whether the operation,finance and accounting policy of the Company follows relevant laws and rules, and provides management andaudit opinions.During the annual audit, the audit committee took active attitude in relevant works. Prior to the officialinvolvement of Ruihua Certified Public Accountants (LLP) (hereinafter referred to as Ruihua) in the annualaudit,On 4 February 2015, the audit committee held meeting to review the financial statements prepared by theCompany, the committee determined the working arrangement for 2014 annual audit after negotiation with Ruihua.and believed that the preparation of such statements was in compliance with provisions of enterprise accountingprinciples, reflecting the financial position as of the end of 2014 and operating results of 2014 on a truthful basis.Thus, the committee agreed to submit the financial statements and related information to Ruihua for audit.After the official audit by Ruihua, members of the audit committee made calls to enquire the audit progress, andurged the accounting firm to complete audit as scheduled according to the working arrangement, so as to ensureprompt disclosure of its annual report. Meanwhile, the committee conducted communications with theaccountants in respect of the issues found in audit works.After the issuance of initial audit opinions by the accountants, the audit committee held meeting on 30 March2015 to re-review the financial statements, and formed written opinions and resolutions in respect of the annualfinancial statements, audit work summary report and reengagement of CPA, which were submitted to the board forconsideration.3. Duty performance of the remuneration and examination committeeDuring the reporting period, the remuneration and examination committee reviewed the remuneration of directors,supervisors and senior management of the Company. The entire members of the committee believed that theremuneration payment in the reporting period complied with the Companys performance examination system.The remuneration of directors, supervisors and senior management were determined according to the relevantsystems of the Company.V. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee
                                                                       深圳市特力(集团)股份有限公司 2014 年年度报告全文□ Yes √ NoSupervisory committee has no objections for the supervise matters in reporting periodVI. Independency of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, institution and financeThe Company has been independent from the controlling shareholders in terms of business, personnel, asset,institution and finance. The Company has independent and complete business and is able to operateindependently.(I) Business: the Company belongs to independent legal person entity. Being completely independent fromcontrolling shareholders, it has independent and complete business system and is able to operate independently.The Company has independent production, sales and service systems and its major business. There is nointer-competition between the Company and its controlling shareholders and related parties.(II) Personnel: the Company establishes complete labor, human resources and salary management systems. All thesenior management of the Company receives remuneration from the Company since they are employed by theCompany, and no one takes position in the enterprises owned by shareholders.(III) Assets: the Company is completely independent from the controlling shareholder in terms of assets; each ofthem is able to operate independently. The Company has complete and separate purchase system, productionsystem, sales system and relevant service system. Intangible assets including industry property, trademark andnon-proprietary technology are owned by the Company on separate basis.(IV) Finance: the Company has independent financial accounting department which set independent accountingcalculation system and finance management system. No controlling shareholder intervenes in the capitalapplication of the Company. The Company opens separate bank accounts. No capital is saved in the financialcompany or settlement center account controlled by substantial shareholder or other related parties. The Companypays taxes by law independently.(V)Institution: the board, the supervisory committee and other internal institutions of the Company operateindependently. All the institutions of the Company are set according to the standards requirements applicable tolisted company and actual business natures of the Company. It has independent office location.VII. Horizontal competition□ Applicable √ Not applicableVIII. Appraisal and incentive mechanism for senior executivesBoard of the Company evaluated senior executives based on relevant regulations at end of this reporting period.
                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                        Section X. Internal controlI. Construction of internal controlAccording to the requirements of laws and regulations and regulatory documents including Basic Standards ofEnterprise Internal Control, Application Guidance for Enterprise Internal Control, Appraisal Guidance forEnterprise Internal Control, Guidance on Standard Operation of Listed Company on the Main board of ShenzhenStock Exchange, the Company has been constructing healthy internal control system, implementing the relevantrequirements, strengthening supervision and inspection on execution of internal control, continuing to improvegovernance level, advancing corporate standard operation and effectively preventing operation decision andmanagement risks, to ensure stable operation of the Company.During the reporting period, the Company made constant improvement and optimization as to its internal controlsystem based on specific risks pursuant to Basic Standards of Enterprise Internal Control and Guidance onInternal Control of Listed Company issued by relevant national authorities, so as to adapt to variable externalenvironment and internal management. Implementation of internal control works was organized by the boarddirectly. In particular, it formed the working mechanism for internal control works which was responsible by thechairman of the board and involved by relevant departments. The Company established appraisal team for internalcontrol. The board of the Company authorized its audit department to take charge of the detailed implementationof internal control appraisal and to make appraisal on the high-risk areas and units within the appraisal scope.Appraisal scope as to internal control covers the major business and issues of the Company and its underlyingentity, especially the following areas with high risks: investment management risk, market environment risk,merger & acquisition risk, policy risk, investment decision risk, property management risk, lawsuits risk, contractmanagement risk, capital management risk, etc.Business and issues taken into account in appraisal scope includes:capital management, purchase management, property lease management, auto sales management, automaintenance management, fixed assets management, equity investment management, financing management,overall budget, cost expense management, contract management, financial report, human resources, relatedtransaction, etc.The internal control of the above business and issues covers major aspects of the operation management of theCompany, without material omission. Internal control appraisal works were conducted in strict accordance withthe basic standards, appraisal guidance and procedures as provided by its internal control appraisal method, withmajor procedures implemented by the internal control appraisal team. Specifically, it first made the Self-appraisalImplementation Scheme for Internal Control which determined the appraisal scope and technical standard, anddelivered the relevant test notice. Later, it formed internal control appraisal project team. Prior to implementationby such project team, it held training meeting oriented for personnel participating in the test. After that, it carriedout site works and completed appraisal draft.During the appraisal, the working team adopted various methodsincluding individual interview, investigation, subject discussion, operation test, site inspection, and sample andcomparison analysis, to collect the evidence to prove whether the design and operation of internal control waseffective. Besides, it completed the appraisal draft based on actual condition, and identified defect in internalcontrol.According to the requirement for recognition of material defect, important defect and normal defect provided inthe Basic Standards and Appraisal Guidance, the Company, taking into account factors such as company scale,industrial nature, risk preference and risk exposure, determined the specific recognition standard for internalcontrol defect applicable to the Company. According to the above recognition standard, normal supervision andspecial supervision, there was no material defect in the internal control of the Company during the appraisal.
                                                                           深圳市特力(集团)股份有限公司 2014 年年度报告全文The Company engaged Ruihua CPA to conduct independent audit on its internal control during the Period.II. Statement of the Board on responsibility for internal controlPursuit to the requirements of Basic Standards of Enterprise Internal Control, Application Guidance for EnterpriseInternal Control and Appraisal Guidance for Enterprise Internal Control, established, perfected and practices aneffective internal control, and Board of the Tellus is responsible for evaluated the effective-ness of the IC.III. Bases for establishment of financial report internal controlThe bases for establishment of financial report internal control are the Basic Standard of Enterprise InternalControl and its affiliated guidance. Ruihua Certified Public Accountants (LLP) issued the audit report withunqualified opinion for the year of 2014 in the Period and no material defect in the financial report of internalcontrol been found in the reporting period.IV. Evaluation report of internal control
                                Details of major defects in evaluation report that found in reporting periodNo major defects been found in internal control in reporting periodDate of evaluation report of internal
                                        2015-04-10control (full-text) disclosed
    Index of evaluation report of           Juchao website http://www.cninfo.com.cn, the website for information disclosure appointed byinternal control (full-text) disclosed Shenzhen Stock ExchangeV. Auditing report and authentication report of internal controlAuditing report of IC
                                      Auditing comments section in audit report of internal controlWe consider that, according to relevant regulations and “Basic Rules of Internal Control for Enterprise”, Shenzhen Tellus HoldingCo., Ltd. maintained an efficiency internal control of financial report dated 31 December 2014, in all material aspects.Date of audit report of internal
                                        2015-04-10control (full-text) disclosed
    Index of audit report of internal       Juchao website http://www.cninfo.com.cn, the website for information disclosure appointed by
    control (full-text) disclosed           Shenzhen Stock ExchangeWhether CPA carries out qualified opinion for audit report of internal control or not
    □ Yes   √NoWhether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation report of the Board√ Yes □ NoVI. Establishment and enforcement of Accountability Mechanism for Major Errors in AnnualReportThe “Accountability Mechanism for Major Errors in Annual Report Disclosure under the Name of ShenzhenTellus Holding Co., Ltd.” was deliberated and approved by 3rd Meeting of 6th Session of the Board, with purposeof standard operation quality, enhancing the accuracy, true-ness, complete-ness and timely of the informationdisclosed; strengthening on accountability for person who in charge of the annual information disclosure,improving the quality and transparency of annual information that disclosed. The Company strictly followrequirement of mechanism in reporting period, and has no major errors being found in the information disclosure.
                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                 Section XI. Financial ReportI. Audit report
    Type of audit opinion                         Standard unqualified
    Date for audited report signed                2015-04-09
    Name of audit institution                     Ruihua Certified Public Accountants (LLP)
    Reference number                              Ruihua Shen Zi [2015] No.48330005
    CPA                                           Yuan Longping, Qin Changming
                                     Auditors Report
                                                            Ruihua Shen Zi [2015] 48330005To the shareholders of Shenzhen Tellus Holding Company Limited:We have audited the accompanying financial statements of Shenzhen Tellus HoldingCompany Limited (“the Company”), which comprise the consolidated and company balancesheet as at 31 December 2014, and the consolidated and company income statement, theconsolidated and company cash flow statement, the consolidated and company statementsof changes in equity for the year then ended, and notes to these financial statementsManagement’s Responsibility for the Financial StatementsThe Companys management is responsible for the preparation of financial statements thatgive a true and fair view. This responsibility includes: (1) Preparing financial statements inaccordance with the Accounting Standards for Business Enterprises. (2) Designing,implementing and maintaining internal control relevant to the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with Chinas Auditing Standards for the CertifiedPublic Accountants. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance whether the financial statementsare free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditorsjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entitys preparation of the financial statements inorder to design audit procedures that are appropriate in the circumstances, but not for the
                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文purpose of expressing an opinion on the effectiveness of the Companys internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.Audit OpinionsIn our opinion, the companys financial statements comply with the Accounting Standardsfor Business Enterprises and present fairly, in all material respects, the financial position ofthe Company as at 31 December 2014, and the results of operations and cash flows of theCompany for the year then ended.II Financial Report
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文
                     Consolidated Balance Sheet
                                As at 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                        Currency: RMB Yuan
                     Item                 Closing balance           Opening balanceCurrent Assets:
    Monetary funds                                   80,045,669.65              69,898,791.56Financial assets held-for-tradingNote receivables
    Account receivables                                1,373,257.89               5,016,738.78
    Prepayments                                        6,981,402.87               8,309,574.73Premiums account receivableDividends receivable
    Other receivables                                  7,904,999.44               8,028,356.69
    Inventories                                      48,209,026.18              62,826,365.70Non-current asset due within one year
    Other current assets                               8,968,278.77             11,644,102.02
    Total current assets                             153,482,634.80             165,723,929.48Non-current Assets:
    Financial assets held-for-trade                 10,478,985.77              11,959,154.57
    Held-to-maturity investments                        100,000.00                100,000.00
    Long-term receivables
    Long-term equity investments                   211,270,265.80             191,394,600.98
    Investment properties                           85,083,745.72              88,422,673.91
    Fixed assets                                   142,849,121.72             149,968,663.80
    Construction in progress                       122,551,469.97              41,642,020.40
    Materials for construction
    Disposal of fixed assets
    Bio-assets in production
    Oil and gas assets
    Intangible assets                               53,924,233.96                   33,255.04
    Development expenditure
    Goodwill
    Long-term deferred expenses                         905,871.01                848,038.96
    Deferred tax assets                             25,678,449.05              25,748,724.89
    Other non-current assets                                                   26,339,112.00
    Total non-current assets                         652,842,143.00             536,456,244.55
    Total Assets                                     806,324,777.80             702,180,174.03
                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文
                Consolidated Balance Sheet(Continued)
                                            As at 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                     Currency: RMB Yuan
                         Item                           Note           Closing balance                Opening balance流动负债:
    Short-term loans                                     Ⅶ、19                74,719,672.00                110,969,952.93
    Financial liabilities held-for-trade
    Notes payable                                        Ⅶ、20                                              15,920,748.09
    Accounts payable                                     Ⅶ、21                22,340,922.90                 22,008,010.24
    Advance from customers                               Ⅶ、22                  9,979,166.89                22,087,866.51
    Employee benefits payable                            Ⅶ、23                17,164,185.03                 14,408,687.62
    Taxes and due payable                                Ⅶ、24                  9,055,093.27                16,687,262.22
    Premiums payables
    Dividends payable
    Other payables                                       Ⅶ、25               114,533,081.65                107,809,585.66
    Non-current liabilities due within one year          Ⅶ、26               120,700,000.00                 12,000,000.00
    Other current liabilities
    Total current liabilities                                                   368,492,121.74                321,892,113.27Non-current liabilities:
    Long-term loans                                      Ⅶ、27               178,597,550.55                131,000,000.00
    Bonds payable
    Long-term payables                                   Ⅶ、28                13,657,490.94                 13,319,681.59
    Long-term employee benefits payable                  Ⅶ、29                  9,953,557.75                10,297,200.34
    Special payables
    Accrued liabilities
    Deferred tax liabilities                             Ⅶ、16                    723,459.18                 1,248,087.86
    Other non-current liabilities                        Ⅶ、30                32,570,237.55                 29,823,013.37
    Total non-current liabilities                                               235,502,295.97                185,687,983.16
    Total liabilities                                                           603,994,417.71                507,580,096.43Owners' equity:
    Paid-in capital                                      Ⅶ、31               220,281,600.00                220,281,600.00
    Capital reserve                                      Ⅶ、32                  7,672,605.51                 7,672,605.51
    Less: treasury shares
    other comprehensive income                           Ⅶ、33                                                 835,925.67
    Special reserve
    Surplus reserves                                     Ⅶ、34                  2,952,586.32                 2,952,586.32
    General risk reserve
    Undistributed profit                                 Ⅶ、35                -39,026,529.03                -49,371,746.70
    Foreign exchange translation differenceTotal owners' equity attributable to parent
                                                                            191,880,262.80                182,370,970.80company
    Minority interests                                                         10,450,097.29                 12,229,106.80
    Total owners’equity                                                        202,330,360.09                194,600,077.60
    Total liabilities and owners’equity                                        806,324,777.80                702,180,174.03
                 Legal representative: Lv Hang        Person in charge of accounting: Yang Jianping
                                  Person in charge of accounting organ:Ke Wensheng
                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                       Balance Sheet
                                   As at 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                               Currency: RMB Yuan
                  Item                    Note      Closing balance          Opening balanceCurrent Assets:
    Monetary funds                                            26,441,746.73             30,209,143.04Financial assets held-for-tradeNotes receivable
    Accounts receivable                      XIII、1
    Prepayments                                                  106,810.00                 21,000.00Premiums receivableDividends receivable
    Other receivables                        XIII、2         110,350,188.00             36,330,120.01InventoriesNon-current asset due within one year
    Other current assets                                       1,350,000.00
    Total current assets                                      138,248,744.73             66,560,263.05Non-current Assets:
    Financial assets available-for-sale                       10,176,617.20             11,656,786.00Held-to-maturity investmentsLong-term receivable
    Long-term equity investments             XIII、3         425,961,150.29           416,600,932.05
    Investment properties                                     54,186,250.01             55,919,100.96
    Fixed assets                                              17,961,888.31             18,675,995.34
    Construction in progress                                     251,308.70                251,308.70Materials for constructionDisposal of fixed assetsBio-assets in productionOil and gas assets
    Intangible assets                                            274,939.25                 33,255.04Development expenditureGoodwill
    Long-term deferred expenses                                  346,559.91                 65,496.04
    Deferred tax assets                                       13,986,138.44             14,025,080.64Other non-current assets
    Total non-current assets                                  523,144,852.11           517,227,954.77
    Total Assets                                              661,393,596.84           583,788,217.82
                                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                 Balance Sheet (Continued)
                                             As at 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                   Currency: RMB Yuan
                        Item                            Note         Closing balance             Opening balanceCurrent liabilities:
    Short-term loans                                                            19,544,160.00               67,544,160.00
    Financial liabilities held-for-trade
    Notes payable
    Accounts payable
    Advance from customers
    Employee benefits payable                                                    6,918,478.90                4,145,439.65
    Taxes and due payable                                                          430,065.27                  403,514.95
    Interest payable
    Dividends payable
    Other payables                                                            260,117,846.49               287,687,112.90
    Non-current liabilities due within one year                               120,700,000.00                 6,000,000.00
    Other current liabilities
    Total current liabilities                                                   407,710,550.66               365,780,227.50Non-current liabilities:
    Long-term loans                                                           132,300,000.00                95,500,000.00
    Bonds payable
    Long-term payables
    Long-term empolyee benefits                                                  3,343,417.98                3,444,640.52
    Special payables
    Accrued liabilities
    Deferred tax liabilities                                                                                   278,641.88
    Other non-current liabilities
    Total non-current liabilities                                               135,643,417.98                99,223,282.40
    Total liabilities                                                           543,353,968.64               465,003,509.90Owners' equity:
    Paid-in capital                                                           220,281,600.00               220,281,600.00
    Capital reserve                                                              4,479,182.23                4,479,182.23
    Less: treasury shares
    Other comprehensive income                                                                                 835,925.67
    Special reserve
    Surplus reserves                                                             2,952,586.32                2,952,586.32
    General risk reserve
    Undistributed profit                                                     -109,673,740.35               -109,764,586.30Total owners' equity attributable to
                                                                            118,039,628.20               118,784,707.92parent company
    Total liabilities and owners' equity                                        661,393,596.84               583,788,217.82
                    Legal representative: Lv Hang        Person in charge of accounting: Yang Jianping
                                    Person in charge of accounting organ:Ke Wensheng
                                                              深圳市特力(集团)股份有限公司 2014 年年度报告全文
                          Consolidated Income Statement
                                 For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                  Currency: RMB Yuan
                        Item                                Note         Closing balance              Opening balance
    Ⅰ.Total operating income                                                      464,987,527.80           486,729,308.18
    Including: Operating income                                Ⅶ、36             464,987,527.80           486,729,308.18
    Ⅱ.Total operating Costs                                                       481,799,447.89           478,398,981.27
    Including: Operating costs                                 Ⅶ、36             389,423,619.69           387,558,722.36
            Business tax and extra charges                  Ⅶ、37                  5,046,179.83          7,351,792.51
            Selling expenses                                Ⅶ、38              21,073,376.98            21,265,233.88
            General and administrative expense              Ⅶ、39              43,509,348.15            43,294,086.57
            Financial expense                               Ⅶ、40              17,771,137.44            17,364,050.91
            Impairment losses of assets                     Ⅶ、41                  4,975,785.80          1,565,095.04
    Add: Gains from changes in fair value ("-"means loss)
          Investment income ("-" means loss)                Ⅶ、42              26,001,792.57             8,550,869.02
         Including: Investment income from
                                                                                24,775,664.82             7,831,419.53associates and joint venture
    Ⅲ.Operating profit ("-" means loss)                                                9,189,872.48         16,881,195.93
    Add: Non-operating income                              Ⅶ、43                   965,026.73             331,465.34
           Including:Gain from disposal of non-
                                                                                     197,088.80             247,361.49current assets
    Less: Non-operating expenses                           Ⅶ、44                   129,520.69           2,680,027.26
           Including: Loss on disposal of non-
                                                                                      48,602.31              74,691.28current assets
    Ⅳ.Total profit ("-" means loss)                                                10,025,378.52            14,532,634.01
    Less: Income tax expenses                               Ⅶ、45                  1,459,170.36         11,193,198.71
    Ⅴ.Net profit ("-" means loss)                                                      8,566,208.16          3,339,435.30
    Net attributable to owners of parent company                                 10,345,217.67             7,185,944.01
    Minority interests                                                            -1,779,009.51            -3,846,508.71Ⅵ.Earnings per share
    Basic Earnings per share                                                              0.0470                  0.0326
    Diluted Earnings per share                                                            0.0470                  0.0326Ⅶ.Net value of other comprehensive income
                                                            Ⅶ、46                   -835,925.67           -224,163.37after tax
    Net value of other comprehensive income after
                                                                                     -835,925.67           -224,163.37tax to owners of parent company
    Other comprehensive income that can be
                                                                                     -835,925.67           -224,163.37reclassified into profit and loss
    The gains and losses on fair value changes of
                                                                                     -835,925.67           -224,163.37financial assets held-for-trade
    Ⅷ.Total comprehensive income                                                       7,730,282.49          3,115,271.93
    Total comprehensive income attributable to
                                                                                    9,509,292.00          6,961,780.64owners of parent company
    Total comprehensive income attributable to
                                                                                 -1,779,009.51            -3,846,508.71minority interests
                Legal representative: Lv Hang         Person in charge of accounting: Yang Jianping
                                 Person in charge of accounting organ:Ke Wensheng
                                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                               Income Statement
                                      For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                          Currency: RMB Yuan
                                                                          Amount for the current       Amount for the prior
                           Item                                 Note
                                                                                 period                     period
    Ⅰ.Total operating income                                    XIII、4                   20,660,013.84          18,196,957.74
        Less:Operating cost                                  XIII、4                    3,638,420.84           4,221,693.27
              Business tax and extra charges                                            1,156,960.78             991,328.34
              Selling expenses
              General and administrative expense                                       21,140,261.38          19,249,847.11
               Financial expense                                                       10,587,352.42          10,064,281.81
               Impairment losses of assets                                                31,087.94              116,649.26
        Add: Gain from changes in fair value ("-" meansloss)
            Investment income ("-" means loss)               XIII、5                   15,486,345.99           7,318,029.10
         Including: Investment income from
                                                                                       14,260,218.24           6,588,469.63associates and joint venture
    II.Operating profit ("-" means loss)                                                     -407,723.53           -9,128,812.95
        Add: Non-operating income                                                        537,511.68
            Including:Gain from disposal of non-current
                                                                                          28,512.68assets
        Less:Non-operating expenses                                                                               43,343.81
            Including: Loss on disposal of non-current
                                                                                                                  43,343.81assets
    III.Total profit ("-" means loss)                                                        129,788.15            -9,172,156.76
    Less: Income tax expenses                                                             38,942.20               38,942.20
    IV.Net profit ("-" means loss)                                                            90,845.95            -9,211,098.96
    V.Other comprehensive income                                                             -835,925.67            -224,163.37
    Other comprehensive income that can be
                                                                                         -835,925.67            -224,163.37reclassified into profit and loss
    The gains and losses on fair value changes of
                                                                                         -835,925.67            -224,163.37financial assets held-for-trade
    VI.Total comprehensive income                                                            -745,079.72           -9,435,262.33
                    Legal representative: Lv Hang         Person in charge of accounting: Yang Jianping
                                    Person in charge of accounting organ:Ke Wensheng
                                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文
                         Consolidated Statement of Cash Flows
                                      For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                          Currency: RMB Yuan
                                                                                  Amount for the         Amount for the
                           Item                                     Note
                                                                                  current period          prior periodⅠ. Cash Flow from Operating Activities:
    Cash received from sales of goods or rendering of
                                                                                    519,037,138.41            537,798,772.47services
    Refund of taxes and levies
    Cash received relating to other operating activities            Ⅶ、47            5,904,757.26              8,481,935.53
    Sub-total of Cash Inflows                                                       524,941,895.67            546,280,708.00
    Cash paid for goods and services                                               408,051,698.31            437,132,075.12
    Cash paid to and on behalf of employees                                         54,631,918.73             55,368,170.35
    Cash paid on taxes and levies                                                   22,018,514.18             24,435,686.07
    Cash paid relating to other operating activities                Ⅶ、47           34,025,057.60             31,974,411.26
    Sub-total of Cash Outflows                                                      518,727,188.82            548,910,342.80
    Net Cash Flows from Operating Activities                                          6,214,706.85             -2,629,634.80Ⅱ. Cash Flows from Investing Activities:
    Cash received from return of investments                                         1,507,458.60
    Cash received investing income                                                   4,984,270.40              3,179,559.47
    Net cash received from disposal of fixed assets,
                                                                                        312,190.00             34,900,418.00
    intangible assets and other long assets
    Net cash flows from disposal subsidiary and otheroperating unite
    Other cash received relating to investing activities
    Sub-total of Cash Inflows                                                        6,803,919.00             38,079,977.47
    Cash paid to acquire fixed assets, intangible assets
                                                                                    103,733,506.30             31,164,527.37and other long assets
    Cash paid on investments                                                                                  10,087,147.05
    Net cash paid on obtain subsidiary and otheroperating unite
    Cash paid on other investing activities
    Sub-total of Cash Outflows                                                      103,733,506.30             41,251,674.42
    Net Cash Flows from Investing Activities                                        -96,929,587.30             -3,171,696.95Ⅲ. Cash flow from Financing Activities
    Cash received from investments
    Including: Cash received from investments byminority interests of subsidiaries
    Cash received from borrowing                                                   498,797,550.55            134,075,373.53
    Cash received from issuing bonds
    Cash received from other financing activities                  Ⅶ、47            6,732,343.46             28,008,026.45
    Sub-total of Cash Inflows                                                      505,529,894.01            162,083,399.98
    Cash repayments on borrowed amounts                                            378,717,530.93            128,857,842.60
    Cash payments for distribution of dividends or profits                          17,868,720.63             11,962,773.54
    Including: Dividends or profit paid to minority
                                                                                                                1,455,297.72interests of subsidiaries
    Cash payments on other financing activities                    Ⅶ、47            1,350,000.00              7,436,543.46
    Sub-total of cash Outflows                                                      397,936,251.56            148,257,159.60
    Net cash flows from financing activities                                        107,593,642.45             13,826,240.38
    Ⅳ. Effect of foreign exchange rate on cash                                                 459.55                 -3,991.92
    Ⅴ. Net increase in cash and cash equivalents                       Ⅶ、48           16,879,221.55              8,020,916.71
    Add: cash equivalents at the beginning of the period                            63,166,448.10             55,145,531.39
    Ⅵ. Cash equivalents at the end of the period                                        80,045,669.65             63,166,448.10
                   Legal representative: Lv Hang              Person in charge of accounting: Yang Jianping
                                     Person in charge of accounting organ:Ke Wensheng
                                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                         Cash Flow Statement
                                    For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                        Currency: RMB Yuan
                                                                             Amount for the         Amount for the prior
                          Item                                   Note
                                                                             current period              periodⅠ. Cash Flow from Operating Activities:
    Cash received from sales of goods or rendering of
                                                                                  20,660,013.84             18,196,957.74services
    Refund of taxes and levies
    Cash received relating to other operating activities                             674,229.77             38,066,387.96
    Sub-total of Cash Inflows                                                     21,334,243.61             56,263,345.70
    Cash paid for goods and services
    Cash paid to and on behalf of employees                                      10,156,423.38             11,992,805.70
    Cash paid on taxes and levies                                                 2,541,986.11              3,429,364.05
    Cash paid relating to other operating activities                             108,178,198.87             10,992,577.29
    Sub-total of Cash Outflows                                                  120,876,608.36             26,414,747.04
    Net Cash Flows from Operating Activities                                    -99,542,364.75             29,848,598.66Ⅱ. Cash Flows from Investing Activities:
    Cash received from return of investments                                      1,507,458.60
    Cash received investing income                                                4,984,270.40              3,179,559.47
    Net cash received from disposal of fixed assets,
                                                                                       39,890.00
    intangible assets and other long assets
    Other cash received relating to investing activities
    Sub-total of Cash Inflows                                                     6,531,619.00              3,179,559.47
    Cash paid to acquire fixed assets, intangible assets
                                                                                   2,253,859.28                827,551.74and other long assets
    Cash paid on investments                                                                               10,087,147.05
    Cash paid on other investing activities
    Sub-total of cash outflows                                                    2,253,859.28             10,914,698.79
    Net Cash Flows from Investing Activities                                      4,277,759.72             -7,735,139.32Ⅲ. Cash flow from Financing Activities
    Cash received from investments
    Cash received from borrowing                                                342,500,000.00             58,000,000.00
    Cash received from issuing bonds
    Cash received from other financing activities
    Sub-total of cash inflows                                                   342,500,000.00             58,000,000.00
    Cash repayments on borrowed amounts                                         239,000,000.00             46,000,000.00
    Cash payments for distribution of dividends or
                                                                                  10,652,719.46              4,886,560.37profits
    Cash payments on other financing activities                                                               631,800.00
    Sub-total of cash Outflows                                                  249,652,719.46             51,518,360.37
    Net cash flows from financing activities                                     92,847,280.54              6,481,639.63
    Ⅳ. Effect of foreign exchange rate on cash                                              -71.82                   -143.42
    Ⅴ. Net increase in cash and cash equivalents                                     -2,417,396.31             28,594,955.55
    Add: cash equivalents at the beginning of the period                          30,209,143.04              1,614,187.49
    Ⅵ. Cash equivalents at the end of the period                                     27,791,746.73             30,209,143.04
                  Legal representative: Lv Hang          Person in charge of accounting: Yang Jianping
                                  Person in charge of accounting organ:Ke Wensheng
                                                                                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                        CONSOLIDATED STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                                           For the Year Ended 31 December 2014Prepared by:Shenzhen Tellus Holding Co.,Ltd.
                                                                                                                      Amount for the current year
                                                                                              Attribute to the equity of parent company
                     Item
                                                                                                                                                                                      Minority        Total owners'
                                                                                          Less:                  other
                                                   Paid-in capital (or   Capital                   Special                                       General   Undistributed              interests          equity
                                                                                        Treasury             comprehensive    Surplus reserve                                Others
                                                    Share capital)       reserve                   reserve                                       reserve      profit
                                                                                         shares                 income
    1.Balance at the End of Last Period                    220,281,600.00    7,672,605.51                            835,925.67       2,952,586.32              -49,371,746.70            12,229,106.80    194,600,077.60
    Add: Changes of accounting policies
           Prior year adjustments
           Others
    2. Balance at the Beginning of the Year                220,281,600.00    7,672,605.51                            835,925.67       2,952,586.32              -49,371,746.70            12,229,106.80    194,600,077.603. Increase/Decrease movements in
                                                                                                                -835,925.67                                  10,345,217.67            -1,779,009.51      7,730,282.49this Year ("-" means loss)
    (I)Total comprehensive income                                                                                   -835,925.67                                  10,345,217.67            -1,779,009.51      7,730,282.49(II) Gain/Loss to Owners' Equity Directly(III) Capital Injected and Reduced by Ownersa. Capital injected by ownersb. Payment for shares included in owners' equityc. Others(IV) Profit Distributiona. Withdrawal surplus reserveb. Provisions withdrawn for general riskc. Distribution to owners (or shareholders)d. Others(V) Internal transfers of owners' equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalization of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of special reserveb. Use of special reserve(VII) Others
    4. Balance at the end of the period                    220,281,600.00    7,672,605.51                                             2,952,586.32              -39,026,529.03            10,450,097.29    202,330,360.09
                                                                                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                     CONSOLIDATED STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                                         For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                                                                                                                  Currency: RMB Yuan
                                                                                                                       Amount for the prior year
                                                                                           Attribute to the equity of parent company
                     Item
                                                                                                                                                                                   Minority         Total owners'
                                                   Paid-in capital                    Less:      other
                                                                      Capital                                Special       Surplus       General                                   interests           equity
                                                     (or Share                      Treasury comprehensiv                                          Undistributed profit   Others
                                                                      reserve                                reserve       reserve       reserve
                                                      capital)                       shares    e income
    1.Balance at the End of Last Period                 220,281,600.00   7,672,605.51             1,060,089.04                2,952,586.32                   -56,557,690.71            16,215,688.82     191,624,878.98
    Add: Changes of accounting policies
           Prior year adjustments
           Others
    2. Balance at the Beginning of the Year             220,281,600.00   7,672,605.51             1,060,089.04                2,952,586.32                   -56,557,690.71            16,215,688.82     191,624,878.983. Increase/Decrease movements in
                                                                                               -224,163.37                                                7,185,944.01             -3,986,582.02       2,975,198.62this Year ("-" means loss)
    (I)Total comprehensive income                                                                  -224,163.37                                                7,185,944.01             -3,846,508.71       3,115,271.93(II) Gain/Loss to Owners' Equity Directly(III) Capital Injected and Reduced by Ownersa. Capital injected by ownersb. Payment for shares included in owners' equityc. Others(IV) Profit Distributiona. Withdrawal surplus reserveb. Provisions withdrawn for general riskc. Distribution to owners (or shareholders)d. Others(V) Internal transfers of owners' equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalization of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of special reserveb. Use of special reserve
    (VII) Others                                                                                                                                                                         -140,073.31        -140,073.31
    4. Balance at the end of the period                 220,281,600.00   7,672,605.51               835,925.67                2,952,586.32                   -49,371,746.70            12,229,106.80     194,600,077.60
                 Legal representative: Lv Hang                             Person in charge of accounting: Yang Jianping                     Person in charge of accounting organ:Ke Wensheng
                                                                                                       深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                          STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                              For the Year Ended 31 December 2014Prepared by:Shenzhen Tellus Holding Co.,Ltd.
                                                                                                       Amount for the current year
                  Item                      Paid-in capital                    Less:                   other
                                                                Capital                 Special                        Surplus       General
                                              (or Share                      Treasury             comprehensive                                Undistributed profit    Total owners' equity
                                                               reserve                  reserve                       reserve        reserve
                                               capital)                       shares                 income
    1.Balance at the End of Last Period         220,281,600.00    4,479,182.23                              835,925.67   2,952,586.32                    -109,764,586.30          118,784,707.92
    Add: Changes of accounting policies
         Prior year adjustments
         Others2. Balance at the Beginning of the
                                            220,281,600.00    4,479,182.23                              835,925.67   2,952,586.32                    -109,764,586.30          118,784,707.92Year3. Increase/Decrease movements in
                                                                                                       -835,925.67                                         90,845.95              -745,079.72this Year ("-" means loss)
    (I)Total comprehensive income                                                                          -835,925.67                                         90,845.95              -745,079.72(II) Other comprehensive income(III) Capital Injected and Reducedby Ownersa. Capital injected by ownersb. Payment for shares included inowners' equityc. Others(IV) Profit distributiona. Withdrawal surplus reserveb. Provisions withdrawn for generalriskc. Distribution to owners (orshareholders)d. Others(V) Internal transfers of owners'equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalisation of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of current periodb. Use of special reserve(VII) Others
    4. Balance at the end of the period         220,281,600.00    4,479,182.23                                           2,952,586.32                    -109,673,740.35           118,039,628.20
                                                                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文
                                                   STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                         For the Year Ended 31 December 2014
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                                                                                      Currency: RMB Yuan
                                                                                                       Amount for the prior year
                  Item                                                             Less:         other
                                              Paid-in capital      Capital                                        Special    Surplus       Undistrib   Total owners'       Total owners'
                                                                                 Treasury    comprehensive
                                            (or Share capital)     reserve                                        reserve    reserve         uted         equity              equity
                                                                                  shares        income
                                                                                                                                            profit
    1.Balance at the End of Last Period           220,281,600.00      4,479,182.23                     1,060,089.04             2,952,586.32               -100,553,487.34     128,219,970.25
    Add: Changes of accounting policies
         Prior year adjustments
         Others2. Balance at the Beginning of the
                                              220,281,600.00      4,479,182.23                     1,060,089.04             2,952,586.32               -100,553,487.34     128,219,970.25Year3. Increase/Decrease movements in
                                                                                                   -224,163.37                                           -9,211,098.96       -9,435,262.33this Year ("-" means loss)
    (I)Total comprehensive income                                                                       -224,163.37                                          -9,211,098.96       -9,435,262.33(II) Other comprehensive income(III) Capital Injected and Reducedby Ownersa. Capital injected by ownersb. Payment for shares included inowners' equityc. Others(IV) Profit distributiona. Withdrawal surplus reserveb. Provisions withdrawn for generalriskc. Distribution to owners (orshareholders)d. Others(V) Internal transfers of owners'equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalisation of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of current periodb. Use of special reserve(VII) Others
    4. Balance at the end of the period           220,281,600.00      4,479,182.23                       835,925.67             2,952,586.32               -109,764,586.30      118,784,707.92
                Legal representative: Lv Hang                    Person in charge of accounting: Yang Jianping          Person in charge of accounting organ:Ke Wensheng
                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文
                          SHENZHEN TELLUS HOLDING CO., LTD.
                                  Notes to Financial Statements
        (For the Year Ended 31 December, 2014                    Expressed in RMB Yuan)Ⅰ、 Corporation profile1.Foundation of TellusThe Chinese name of Tellus: 深圳市特力(集团)股份有限公司The English name of Tellus: ShenZhen Tellus Holding Co.,LtdRegistered company addrss: Tellus Building level 3, Shuibei second Road, Luohu,Shenzhen City, Guangdong Province.Office address: the 15th Floor of Nuclear Building ,Shennan Road, Futian District, ShenzhenStock market: Shenzhen Stock ExchangeName and code: Tellus A(000025),Tellus B(200025)Legal representative:Hang LVThe number of business license: 4403011030177502. Theindustry characteristic and business scope with the main products or servicesTheindustry characteristic:Theindustry of providing energy materials, machinery andelectronics equipmentThe business scope:automotive integrated services, including the test of equipmentmaintenance, property leasing and management etc.The main products or services: sales of vehicles and accessories, the maintenanceand inspection of vehicles and the services of property leasing etc.3. The history of TellusShenzhen Tellus Holding Company Limited (“the Company”) was developed from theShenzhen Tellus Machinery Co.,Ltd., which established on 11 October, 1986. On 2 ndJanuary, 1992, with the approval of Shenzhen Municipal People’s Government“shen fu ban fu (1992), No. 1850”, Shenzhen Tellus Machinery Co.,Ltd. reorganizedto a public limited company and renamed to Shenzhen Tellus Machinery HoldingCompany Limited. On 15 March 1993, with the approval of Bank of China Shenzhenbranch “Shen Ren Yin Fu Zi (1993) No.92”, the Company issued the initial public
                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文registered shares and turned into Limited Liability Company with the name of “Tellusmechanical and electrical co. LTD, Shenzhen”. At this moment, the whole sharecapital is 166.88million shares, including the original 120.9million shares with45.98million new shares. The new shares is divided into two parts, one is RMB 25.98million ordinary shares (A shares) ,the other is special shares (B) RMB 20 millionsharesIn June 1993, Shenzhen securities management office was about to agree that“ Tellus mechanical and electrical co. LTD, Shenzhen “ wasqualified to list inShenzhenstock exchange market(shen zheng ban fu[1993]34) and (shen zheng shizi [1993]22).On 30 June 1994, the Company changed name to Shenzhen TellusHolding Company Limited with the approval of Shenzhen administrative bureau forindustry and commerce .On March 15, 1993, with the approval of the branch of people’s bank of China inshenzhen special economic zone, the group could issue A ordinary shares 25.98million with B ordinary shares20 million (shen ren yin fu zi (1993)092).On June 30,1994, with the approval of the shenzhen city administration for industry andcommerce, Tellus mechanical and electrical co. LTD, Shenzhen was renamedShenZhen Tellus Holding Co.,LtdThe capital structure of the Company at listing date:
                                   Category                 Amount (share)          Ratio(%)1. Non-tradable shares
    Include: State shares                                         120,900,000                   72.45
    Sub-total of non-tradable shares                                   120,900,000                   72.452. Tradable shares
      -A                                                            25,980,000                   15.57
      -B                                                            20,000,000                   11.98
    Sub-total tradable shares                                      45,980,000                   27.55
                                   Total                           166,880,000                100.00Change of capital structure after established:(1)Issue bonus shares in 1993
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文
    According to the decision made by general meeting of shareholders in 1993, thecompany distributed a 2 for 10 bonus shares with cash dividend of RMB 0.5. Thewhole capital changed into 2,002.56 million shares.On 22 April 1994,the Shenzhen Stock Management Office agreed about plan ofdistributing bonus . After plan, the company’s capital structure changed as follows:
                                Category               Amount(share)           Ratio(%)
    State - owned shares                                          145,080,000                     72.45
    Public shares                                                  31,176,000                     15.57
    RMB special stock(B shares)                                  24,000,000                     11.98
                                Total                         200,256,000                 100.00(2)Issue bonus shares and increase capital in 1994
    On 28 May 1995, the Group shareholder meeting agreed about plan of distributingbonus and increasing capital. On the basis of 2,002.56 million shares in the end of1994, the Group distributed 0.5 of 10 shares, and give RMB 0.5 from everyincreasing 0.5 share capital. After the Groups share capital increased to 2,202.816million shares.After plan, the companys capital structure changed as follows:
                                Category               Amount(share)           Ratio(%)
    State - owned shares                                           159,588,000                     72.45
    Public shares                                                   34,293,600                     15.57
    RMB special stock(B shares)                                   26,400,000                     11.98
                                Total                          220,281,600                    100.00(3)Majority shareholder change in 1997On 31st March 1997, with the approval of Shenzhen Municipal Peoples Government“shen fu han (1997), No. 19” and China Securities Regulatory Commission “zhengjian han shang (1997), No. 5”, Shenzhen Investment Administrative Companytransferred its 159,588,000 shares to Shenzhen Te Fa (Group) Company Limited(hereinafter referred to as “the Te Fa Group”). The shares transferred represent72.45% of the total issued shares of the Company.
                                                               深圳市特力(集团)股份有限公司 2014 年年度报告全文(4)The reform of listing non-tradable shares in 2006
    In    December          2005,          shenzhen,   the    State-owned       Assets Supervision           andAdministration Commission agreed about the plan of reforming non-tradable shares.On 4th January 2006, Te Fa Group gave 13,717,440 shares to the holders of tradableshares of the company in the A share market. After the split-share reform wascompleted, it held 66.22% of the shares capital of the Company.After the split-share reform, the companys capital structure changed as follows:
                                Category                              Amount(share)           Ratio(%)
    State - owned shares                                                          145,870,560                     66.22
    Public shares                                                                  48,011,040                     21.79
    RMB special stock(B shares)                                                  26,400,000                     11.98
                                Total                                         220,281,600                    100.00Till the end of 2013, the Company had issued 2,202.816 million shares, details inNote 7.31.4. The scope of consolidationThere are 14 subsidiariesincluded in the 2014 consolidation scope, details innotes8”the equity in other entities”. Compared with last year(2013), there is nodifference in the consolidation scope.5. The approval and the date of financial statementsThe financial statements of the Company are authorized to be issued to the public onninthMarch, 2015 by the Board of Directors.
       Ⅱ、 Basis of PreparationThe financial statements of the Company have been prepared on the basis of goingconcern in conformity with Chinese Accounting Standards for Business Enterprisesand Accounting Systems for Business Enterprises issued by the Ministry of Financeof Peoples Republic of China in February 2006, and Accounting Standards (orderNo.33 of the Ministry of Finance announcedand order No.76 of the Ministry ofFinance revised ) and Compilation Rules for Information Disclosure by CompaniesOffering Securities to the Public No.15—General Provisions on Financial Reports(2014 Revision) issued by the China Securities Regulatory Commission (CSRC).
                                              深圳市特力(集团)股份有限公司 2014 年年度报告全文According to the relevant accounting regulations in Chinese Accounting Standardsfor Business Enterprises, the Group has adopted the accrual basis of accounting.Except for certain financial instruments which are measured by at fair value, theGroup adopts the historical cost as the principle of measurement in the financialstatements. Where assets are impaired, provisions for asset impairment are made inaccordance with relevant requirements.Ⅲ、 Statement of Compliance with Enterprise Accounting StandardsThe financial statements of the Group comply are recognized and measured inaccordance with the regulations in the Chinese Accounting Standards for BusinessEnterprises and they give a true and fair view of the financial position, businessresults and cash flow of the Group as of 31 December 2014. In addition, in allmaterial respects ,the financial statements of the Company and the Groupcomplywith the revised disclosing requirements for financial statements and the notesCompilation Rules for Information Disclosure by Companies Offering Securities tothe Public No.15—General Provisions on Financial Reports (2014 Revision) issuedby China Securities Regulatory Commission (CSRC) in 2014.Ⅳ、 Important Accounting Principles and Accounting EstimatesAccording to the Chinese Accounting standards,the Group ensures the relevantaccounting policies and estimation by means of characteristics of subsidiaries. Interms of theexplanation of judgment and estimation of important accounting policiesmade by Board of Directors, details will be found in notes 4.31”the importantjudgment and estimation”.1、 Accounting periodThe accounting period of the Group is classified as annual period and interim period.Interim period refers to the reporting period shorter than a complete annual period.The accounting period of the Group is the calendar year from January 1 to December31.2、Oprating CycleThe normal oprating cycle is referring to buying assets used into generating newproducts to sell products and recollect monetary assets.3、 Monetary UnitRenminbi (RMB) is the currency of the primary economic environment in which theGroup and its domestic subsidiaries operate. Therefore, the Group and its domestic
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文subsidiaries choose RMB as their functional currency. The Group adopts RMB toprepare its functional statements.4、Basis of accountingA business combination is a transaction or event that brings together two or moreseparate entities into one reporting entity. Business combinations are classified intobusiness combinations involving enterprises under common control and businesscombinations not involving enterprises under common control.(1)Business combination involving entities under common controlA business combination involving enterprises under common control is a businesscombination in which all of the combining enterprises are ultimately controlled by thesame party or parties both before and after the combination, and that control is nottransitory. For a business combination involving enterprises under common control,the party that, on the combination date, obtains control of another enterpriseparticipating in the combination is the absorbing party, while that other enterpriseparticipating in the combination is a party being absorbed. Combination date is thedate on which the absorbing party effectively obtains control of the party beingabsorbed.The assets and liabilities obtained are measured at the carrying amounts as recordedby the enterprise being combined at the combination date. The difference betweenthe carrying amount of the net assets obtained and the carrying amount ofconsideration paid for the combination (or the total face value of shares issued) isadjusted to the capital premium (or share premium) in the capital reserve. If thebalance of the capital premium (or share premium) is insufficient, any excess isadjusted to retained earnings.The cost of a combination incurred by the absorbing party includes any costs directlyattributable to the combination shall be recognized as an expense through profit orloss for the current period when incurred.(2)Business combination involving entities not under common controlA business combination involving enterprises not under common control is abusiness combination in which all of the combining enterprises are not ultimatelycontrolled by the same party or parties both before and after the businesscombination. For a business combination not involving enterprises under commoncontrol, the party that, on the acquisition date, obtains control of another enterpriseparticipating in the combination is the acquirer, while that other enterprise
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文participating in the combination is the acquiree. Acquisition date is the date on whichthe acquirer effectively obtains control of the acquiree.For a business combination not involving enterprise under common control, thecombination cost including the sum of fair value, at the acquisition date, of the assetsgiven, liabilities incurred or assumed, and equity securities issued by the acquirer.The intermediary expenses incurred by the acquirer in respect of auditing, legalservices, valuation and consultancy services etc and other associated administrativeexpenses attributable to the business combination are recognized in profit or losswhen they are incurred. The transaction cost arose from issuing of equity securitiesor liability securities shall be initially recognized as equity securities or liabilitysecurities.The contingent consideration related to the combination shall be booked ascombination cost at the fair value at the acquisition date. If, within the 12 months afteracquisition, additional information can prove the existence of related information atacquisition date and the contingent consideration need to be adjusted, goodwill canbe offset. For a business combination achieved in stages that involves multipleexchange transactions, the equity interest in the acquiree previously held before theacquisition date re-assessed at the fair value at the acquisition date, with anydifference between its fair value and its carrying amount is recorded as investmentincome. The other comprehensive income of the acquiree before the acquisition daterelating to the previously held interest in the acquiree is transferred to investmentincome. Combination cost is the aggregate of the carrying amount of the equityinterest held in the acquiree prior to the acquisition date and the fair value of the costof the additional investment at the acquisition date.Combination cost of the acquirers interest and identifiable net assets of the acquireracquired through the business combination shall be measured by the fair value at theacquisition date. Where the cost of combination exceeds the acquirers interest in thefair value of the acquirees identifiable net assets, the difference shall be recognizedas goodwill. Where the cost of combination is less than the acquirers interest in thefair value of the acquirees identifiable net assets, the difference shall be accountedfor according to the following requirements: (i) the acquirer shall reassess themeasurement of the fair values of the acquirees identifiable assets, liabilities andcontingent liabilities and measurement of the cost of combination; (ii) if after thatreassessment, the cost of combination is still less than the acquirers interest in the
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文fair values of the acquirees identifiable net assets, the acquirer shall recognize theremaining difference immediately in profit or loss for the current period.Where the temporary difference obtained by the acquirer was not recognized due toinconformity with the conditions applied for recognition of deferred income tax, if,within the 12 months after acquisition, additional information can prove the existenceof related information at acquisition date and the expected economic benefits on theacquisition date arose from deductible temporary difference by the acquiree can beachieved, relevant income tax assets can be recognized, and goodwill offset. If thegoodwill is not sufficient, the difference shall be recognized as profit of the currentperiod.Apart from above, the differences shall be taken into profit or loss of the currentperiod if the recognition of deferred income tax assets is related to the combination.5、Preparation of consolidated financial statements(1)The scope of consolidated financial statementsThe scope of consolidation in the consolidated financial statements is determined onthe basis of control. Control is the power to govern the financial and operatingpolicies of an enterprise so as to obtain benefits from its operating activities. Thescope of consolidation includes the Group and all of the subsidiaries. Subsidiary is anenterprise or entity under the control of the Group.(2)Preparation of the consolidated financial statementsThe subsidiary of the Group is included in the consolidated financial statements fromthe date when the control over the net assets and business decisions of thesubsidiary is effectively obtained, and excluded from the date when the controlceases. For a subsidiary disposed of by the Group, the operating results and cashflows before the date of disposal (the date when control is lost) are included in theconsolidated income statement and consolidated statement of cash flows, asappropriate. For a subsidiary disposed during the period, no adjustment is made tothe opening balance of the consolidated financial statements.For a subsidiary acquired through a business combination not under common control,the operating results and cash flows from the acquisition (the date when the control isobtained) are included in the consolidated income statement and consolidatedstatement of cash flows, as appropriated; no adjustment is made to the openingbalance and comparative figures in the consolidated financial statements. Where asubsidiary was acquired during the reporting period, through a business combination
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文involving enterprises under common control, the financial statements of thesubsidiary are included in the consolidated financial statements. The results ofoperations and cash flow are included in the consolidated balance sheet and theconsolidated income statement, respectively, based on their carrying amounts, fromthe date that common control was established, and the opening balances and thecomparative figures of the consolidated financial statements are restated.When the accounting period or accounting policies of a subsidiary are different fromthose of the Group, the Group makes necessary adjustments to the financialstatements of the subsidiary based on the Groups own accounting period oraccounting policies. Where a subsidiary was acquired during the reporting periodthrough a business combination not under common control, the financial statementswas re-conciliated on the basis of the fair value of identifiable net assets at the date ofacquisition. Intra-group balances and transactions, and any unrealized profit or lossarising from intra-group transactions, are eliminated in preparing the consolidatedfinancial statements.Minority interest and the portion in the net profit or loss not attributable to the Groupare presented separately in the consolidated balance sheet within shareholdersequity and net profit. Net profit or loss attributable to minority shareholders in thesubsidiaries is presented separately as minority interest in the consolidated incomestatement below the net profit line item. When the amount of loss for the currentperiod attributable to the minority shareholders of a subsidiary exceeds the minorityshareholders portion of the opening balance of owners equity of the subsidiary, theexcess is allocated against the minority interests.When the Group loses control of a subsidiary due to the disposal of a portion of anequity investment or other reasons, the remaining equity investment is re-measuredat its fair value at the date when control is lost. The difference between 1) the totalamount of consideration received from the transaction that resulted in the loss ofcontrol and the fair value of the remaining equity investment and 2) the carryingamounts of the interest in the former subsidiarys net assets immediately before theloss of the control is recognized as investment income for the current period whencontrol is lost. The amount recognized in other comprehensive income in relation tothe former subsidiarys equity investment is reclassified as investment income for thecurrent period when control is lost. The retained interest is subsequently measuredaccording to the rules stipulated in the “Chinese Accounting Standards for Business
                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文Enterprises No.2—Long-term equity investment” or “Chinese Accounting Standardsfor Business Enterprises No.22—Determination and measurement of financialinstruments” . Details in Note 4. 7 “Financial instruments” or Note 4.10 ”Long-termequity investments ”.6、The methods of making consolidatedfinancial statements(1) The standards of ensure scope of financial statementsControl is the foundation of ensuring the scope financial statements. Control isreferring to the power of controlling investee via the relevant investing activities withchangeable returns and of influencing to change values of them. The consolidationscope refers to the group and subsidiaries. Subsidiary is entity of the controlled party.(2)The methods of making consolidatedfinancial statementsFrom the day of acquiring the equity and actual control of management decisions, itshould be in the scope vice versa. As for the subsidiary of disposition, the assets andmonetary flow should be included into the consolidated financial statements, notadjusting the opening balance. Under the non-same control surrounding, theoperating results and cash flows have been included in the consolidated financialstatements properly and accurately with no adjustment of the opening balance.Underthe same control surrounding, the operating results and cash flows have beenincluded in the consolidated financial statements properly and accurately withadjustment of the opening balance.When making financial statements, if the period of the group and the subsidiary isdifferent, we should necessarily adjust the subsidiary period in accordance with the
    groups.        As for the non-same control subsidiaries, the values at acquisition date willbe applied when adjusting.The values all major transactions in the group and unrealized profits should beoffsetin the preparation of consolidated financial statements.It should be listed individually when the entity of subsidiaries have non-controllingshares. Furthermore, if there are share belonging to the non-controlling shareholders,we should classify it as “Non-controlling interests”. If there is a loss in the investmentof non-controlling shareholders, we still list the loss in the category of “Non-controllinginterests”.When losing the control power of subsidiesbecause of deposing partial share capital,for the remaining values, it will be recalculated. The sum of consideration at
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文acquisition date minus the original equity held by the group with the relevant route,the difference should be listed into current investment outcome. The comprehensiveincome relevant to subsidiaries should be used the same accounting methods tomeasure. Besides, for the remaining share capital, it should be measured by theaccounting standards of NO.2 andNO.22, details will be found in notes 4.9 ornotes4.13.It is necessary to distinguish how to lose the control power: for a package oftransactions or not. The following would suggest whether affected by a package oftransactions:①fair and equal;②the result of the entire trasanction could beaccomplished by the transaction;③the transaction happens depends on the other;④it will be considered as a whole when measuring the economic results, details willbe found in notes 4、13、(2)④.7.Joint VentureJoint venture refers to an arrangement controlled be two or more than two parties.The group will divide joint venture into joint management and joint ventures inaccordance with the standards.Joint venture is the arrangement of acquiringbenefits .The equity method will be used into the calculation ,details will be found in 4.13(2)②.As a party of joint venture, we should ensure the assets and liabilities individually;besides, revenues and costs of production and sales.If selling or buying assets, the group should only ensure gain or loss which belongedto the other partiesparticipated in joint venture, accounting standards—8.8. Cash and Cash equivalentCash and cash equivalents of the Group include cash on hand, ready usable depositsand investments having short holding term (normally will be due within three monthsfrom the day of purchase), with strong liquidity and easy to be exchanged into certainamount of cash that can be measured reliably and have low risks of change.9. Foreign exchange(1)Translation in foreign exchange transactionsThe foreign currency transactions are recorded, on initial recognition in the functionalcurrency, by applying the spot exchange rate on the date of the transaction (anexchange rate that approximates the actual spot exchange rate on the date oftransaction). The exchange of foreign currency and transactions related to the
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文foreign exchange are translated at the spot exchange rate.(2)Translation of monetary foreign currency and non-monetary foreign currencyAt the balance sheet date, foreign currency monetary items are translated using thespot exchange rate at the balance sheet date. All the exchange differences thusresulted are taken to profit or loss, except for ①those relating to foreign currencyborrowings specifically for construction and acquisition of qualifying assets, which arecapitalized in accordance with the principle of capitalization of borrowing costs. ②The exchange difference from changes of other account balance of foreign currencymonetary items available-for-trade is recorded into profit or loss except for amortizedcost.Non-monetary foreign currency items measured at historical cost shall still betranslated at the spot exchange rate prevailing on the transaction date, and theamount denominated in the functional currency is not changed. Non-monetaryforeign currency items measured at fair value are translated at the spot exchangerate prevailing at the date when the fair values are determined. The exchangedifference thus resulted are recognized in profit or loss for the current period or ascapital reserve.10、Financial instruments(1)Determination of financial assets and liabilities fair valueFair value is the amount for which an asset could be exchanged, or a liability settled,between knowledgeable, willing parties in an arms length transaction. For a financialinstrument which has an active market, the Group uses quoted price in the activemarket to establish its fair value. The quoted price in the active market refers to theprice that can be regularly obtained from exchange market, agencies, industryassociations, pricing authorities; it represents the fair market trading price in theactual transaction.For a financial instrument which does not have an active market, the Groupestablishes fair value by using a valuation technique. Valuation techniques includeusing recent arms length market transactions between knowledgeable, willing parties,reference to the current fair value of another instrument that is substantially the same,discounted cash flow analysis and option pricing models.(2)Classification, recognition and measurement of financial assetsAll regular way purchases or sales of financial assets are recognized andderecognized on a trade date basis. On initial recognition, the Groups financial
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文assets are classified into one of the four categories, including financial assets at fairvalue though profit or loss, held-to maturity investments, loans and receivables andavailable-for-trade financial assets. A financial asset is recognized initially at fairvalue. In the case of financial assets at fair value through profit or loss, relevanttransaction costs are immediately charged to the profit and loss of the current period;transaction costs relating to financial assets of other categories are included in theamount initially recognized.① Financial assets at fair value through profit or loss:Including financial assets held-for-trade and financial assets designated at fair valuethrough profit or loss.Financial asset held-for-trade is the financial asset that meets one of the followingconditions:A. the financial asset is acquired for the purpose of selling it in a short term;B. the financial asset is a part of a portfolio of identifiable financial instruments thatare collectively managed, and there is objective evidence indicating that theenterprise recently manages this portfolio for the purpose of short-term profits;C. the financial asset is a derivative, except for a derivative that is designated andeffective hedging instrument, or a financial guarantee contract, or a derivative that islinked to and must be settled by delivery of an unquoted equity instrument (without aquoted price from an active market) whose fair value cannot be reliably measured.For such kind of financial assets, fair values are adopted for subsequentmeasurement.Financial asset is designated on initial recognition as at fair value through profit orloss only when it meets one of the following conditions:A. the designation eliminates or significantly reduces the inconsistency in themeasurement or recognition of relevant gains or losses that would otherwise arisefrom measuring the financial instruments on different bases.B. a group of financial instruments is managed and its performance is evaluated ona fair value basis, and is reported to the enterprises key management personnels.Formal documentation regarding risk management or investment strategy hasprepared.Financial assets at fair value through profit or loss are subsequently measured at thefair value. Any gains or losses arising from changes in the fair value and any
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文dividends or interest income earned on the financial assets are recognized in theprofit or loss.② Investment held-to maturityHeld-to-maturity investments are non-derivative financial assets with fixed ordeterminable payments and fixed maturity that an entity has the positive intention andability to hold to maturity. Such kind of financial assets are subsequently measured atamortized cost using the effective interest method. Gains or losses arising fromderecognition, impairment or amortization are recognized in profit or loss for thecurrent period.Effective interest rate is the rate that exactly discounted estimated future cash flowsthrough the expected life of the financial asset or financial liability or, whereappropriate, a shorter period to the net carrying amount of the financial asset orfinancial liability.When calculating the effective interest rate, the Group shall estimate future cash flowconsidering all contractual terms of the financial asset or financial liability withoutconsidering future credit losses, and also consider all fees paid or received betweenthe parties to the contract giving rise to the financial asset and financial liability thatare an integral part of the effective interest rate, transaction costs, and premiums ordiscounts, etc.③ Loans and receivablesLoans and receivables are non-derivative financial assets with fixed determinablepayment that are not quoted in an active market. Financial assets classified as loansand receivables by the Group include note receivables, account receivables, interestreceivable dividends receivable and other receivables.Loans and receivables are subsequently measured at amortized cost using theeffective interest method. Gain or loss arising from derecognition, impairment oramortization is recognized in profit or loss.④ Financial assets available-for-tradeFinancial assets available-for-trade include non-derivative financial assets that aredesignated on initial recognition as available for trade, and financial assets that arenot classified as financial assets at fair value through profit or loss, loans andreceivables or investment held-to-maturity.Financial assets available-for-trade are subsequently measured at fair value, and
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文gains or losses arising from changes in the fair value are recognized as othercomprehensive income and included in the capital reserve, except that impairmentlosses and exchange differences related to amortized cost of monetary financialassets denominated in foreign currencies are recognized in profit or loss, until thefinancial assets are derecognized, at which time the gains or losses are released andrecognized in profit or loss.Interests obtained and dividends declared by the investee during the period in whichthe financial assets available-for-trade are held, are recognized in investment gains.(3)Impairment of financial assetsThe Group assesses at the balance sheet date the carrying amount of every financialasset except for the financial assets that measured by the fair value. If there isobjective evidence indicating a financial asset may be impaired, a provision isprovided for the impairment.The Group makes an impairment test for a financial asset that is individuallysignificant. For a financial asset that is not individually significant, it is included in agroup of financial assets with similar credit risk characteristics and collectivelyassessed for impairment [or individually assessed for impairment]. If no objectiveevidence of impairment incurs for an individually assessed financial asset (whetherthe financial asset is individually significant or not individually significant), it isincluded in a group of financial assets with similar credit risk characteristics andcollectively assessed for impairment. Assets for which an impairment loss isindividually recognized is not included in a group of financial assets with similar creditrisk characteristics and collectively assessed for impairment.① Impairment on held-to maturity investment, loans and receivablesThe financial assets measured by cost or amortized cost write down their carryingvalue by the estimated present value of future cash flow. The difference is recordedas impairment loss. If there is objective evidence to indicate the recovery of value offinancial assets after impairment, and it is related with subsequent event afterrecognition of loss, the impairment loss recorded originally can be reversed. Thecarrying value of financial assets after impairment loss reversed shall not exceed theamortized cost of the financial assets without provisions of impairment loss on thereserving date.② Impairment loss on available-for-trade financial assetsWhen decision is made with all related factors on whether the fall of fair value
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文investment of an equity instrument available-for-trade is significant or non-transient, itindicates impairment of such equity instrument investment, in which, “significant”means over 20% of fall in fair value and “non-transient” means over 12 months ofsubsequent fall.When an available-for-trade financial asset is impaired, the cumulative loss arisingfrom declining in fair value that had been recognized in capital reserve shall beremoved and recognized in profit or loss. The amount of the cumulative loss that isremoved shall be difference between the acquisition cost with deduction ofrecoverable amount less amortized cost, current fair value and any impairment losson that financial asset previously recognized in profit or loss.If, after an impairment loss has been recognized, there is objective evidence that thevalue of the financial asset is recovered, and it is objectively related to an eventoccurring after the impairment loss was recognized, the initial impairment loss can bereversed and the reserved impairment loss on available-for-trade equity instrument isrecorded in the profit or loss, the reserved impairment loss on available-for-trade debtinstrument is recorded in the current profit or loss.The equity instrument where there is no quoted price in an active market, and whosefair value cannot be reliably measured, or impairment loss on a derivative asset thatis linked to and must be settled by delivery of such an unquoted equity instrumentshall not be reversed.(4)Recognition and measurement of financial assets transferThe Group derecognizes a financial asset when one of the following conditions ismet:1) the rights to receive cash flows from the asset have expired;2) the enterprise has transferred its rights to receive cash flows from the asset to athird party under a “pass-through” arrangement; or3) the enterprise has transferred its rights to receive cash flows from the asset andeither (a) has transferred substantially all the risks and rewards of the asset, or (b)has neither transferred nor retained substantially all the risks and rewards of theasset, but has transferred control of the asset.If the enterprise has neither retained all the risks and rewards from the financial assetnor control over the asset, the asset is recognized according to the extent it exists asfinancial asset, and correspondent liability is recognized. The extent of existence
                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文refers the level of risk by the financial asset changes the enterprise is facing.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria,(a). the carrying amount of the financial asset transferred; and (b) the sum of theconsideration received from the transfer and any cumulative gain or loss that hadbeen recognized in other comprehensive income, is recognized in profit or loss.If a part of the transferred financial asset qualifies for derecognition, the carryingamount of the transferred financial asset is allocated between the part that continuesto be recognized and the part that is derecognized, based on the relative fair value ofthose parts. The difference between (a) the carrying amount allocated to the partderecognized; and (b) the sum of the consideration received for the partderecognized and any cumulative gain or loss allocated to the part derecognizedwhich has been previously recognized in other comprehensive income, is recognizedin profit or loss.(5)Classification and measurement of financial liabilitiesThe Groups financial liabilities are, on initial recognition, classified into financialliabilities at fair value through profit or loss and other financial liabilities. For financialliabilities at fair value through profit or loss, relevant transaction costs areimmediately recognized in profit or loss for the current period, and transaction costsrelating to other financial liabilities are included in the initial recognition amounts.①Financial liabilities measured by the fair value and the changes recorded in profit orlossThe classification by which financial liabilities held-for-trade and financial liabilitiesdesigned at the initial recognition to be measured by the fair value follows the samecriteria as the classification by which financial assets held-for-trade and financialassets designed at the initial recognition to be measured by the fair value and theirchanges are recorded in the current profit or loss.For the financial liabilities measured by the fair value and changes recorded in theprofit or loss, fair values are adopted for subsequent measurement. All the gains orlosses on the change of fair value and the expenses on dividends or interests relatedto these financial liabilities are recognized in profit or loss for the current period.②Other financial liabilitiesDerivative financial liabilities that linked with equity instruments, which do not have aquoted price in an active market and their fair value cannot be measured reliably, is
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文subsequently measured by cost Other financial liabilities are subsequently measuredat amortized cost using the effective interest method. Gains or losses arising fromderecognition or amortization are recognized in profit or loss for the current period.(6)DerecognitionThe Group derecognizes a financial liability (or part of it) when the underlying presentobligation (or part of it) is discharged or cancelled or has expired. An agreementbetween the Group (an existing borrower) and existing lender to replace originalfinancial liability with a new financial liability with substantially different terms isaccounted for as an extinguishment of the original financial liability and therecognition of a new liability.When the Group derecognizes a financial liability or a part of it, it recognizes thedifference between the carrying amount of the financial liability (or part of the financialliability) derecognized the consideration paid (including any non-cash assetstransferred or new financial liabilities assumed) in profit or loss.(7)Derivatives and embedded derivativesDerivatives in the relevant contract are initially recorded at fair value, and subsequentvaluesmeasure at fair value.(8)Offsetting financial assets and financial liabilitiesWhen the group has a legal right that is currently enforceable to set off therecognized financial assets and financial liabilities, and intends either to settle on anet basis, or to realize the financial asset and settle the financial liabilitysimultaneously, a financial asset and a financial liability shall be offset and the netamount is presented in the balance sheet. Except for the above circumstances,financial assets and financial liabilities shall be presented separately in the balancesheet and shall not be offset.(9) Equity instrumentsAn equity instrument is any contract that evidences a residual interest in the assets ofthe Group after deducting all of its liabilities. The consideration received from issuingequity instruments, net of transaction costs, are added to owners equity.All types of distribution (excluding stock dividends) made by the Group to holders ofequity instruments are deducted from owners equity. The Group does not recognizeany changes in the fair value of equity instruments.11、Account receivables
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文The account receivable by the Group includes account receivables, and otherreceivables.(1)Criteria for recognition of bad debts:The Company carries out an inspection on the balance sheet date. Where there isany objective evidence proving that the receivables have been impaired, animpairment provision shall be made:①A serious financial difficulty occurs to the issuer or debtor;②The debtor breaches any of the contractual stipulations, for example, fails to pay ordelays the payment of interests or the principal, etc.;③ The debtor will probably become bankrupt or carry out other financialreorganizations;④ Other objective evidences showing the impairment of the receivables.(2)Method for bad debts provision① Provisions of bad debts in account receivables that is individually significant.
    The Group treats account receivables over RMB 1,000,000 and other receivablesover RMB 500,000 as individually significant items.For an account receivable that is individually significant, the asset is individuallyassessed for impairment, and the amount of impairment is recognized in profit or lossif there is objective evidence of impairment is included in a group of financial assetswith similar credit risk characteristics and collectively assessed for impairment. Anaccount receivable for which an impairment loss is individually recognized is notincluded in a group of account receivables with similar credit risk characteristics andcollectively assessed for impairment.② Provisions of bad debts in account receivables that individually insignificant itemswith similar credit risk characteristics that have significant risk:A.Evidence of credit risk characteristics
    Whether the financial asset is individually significant or not individually significant,it is included in a group of financial assets with similar credit risk characteristics andcollectively assessed for impairment. Such credit risk reflects the repayment of alldue amount under the contract, and is related to the estimation of future cash flowexpected to be derived from the assets.Evidence of portfolios:
               Item                                      Evidence of portfolios
                                                         深圳市特力(集团)股份有限公司 2014 年年度报告全文
    Aging portfolios                           Use the aging of account receivables as credit risk characteristicsB.Provision by credit risk characteristicsDuring the group impairment test, the amount of bad debts provisions is determinedby the assessed result from the experience of historical loss and current economicstatus and the existing loss in the estimated account receivables according to the setof account receivables and credit risk characteristic.Provisions for difference portfolios:
                        Item                                      Method of provision
                   Aging portfolios                              Provision by Aginga. Provision by Aging analysis
                        Aging            Accounts receivable(%)                     Other receivables(%)
    Within 1 year(inclusive)                        No provision                                No provision
    1-2 years (inclusive)                                5                                            5
    2-3 years (inclusive)                                20                                          20
    Over 3 years                                         50                                          50③ Provisions of bad debts that is individually insignificant.The Group treats account receivables under RMB 1,000,000 and other receivablesunder RMB 500,000 as individually insignificant items.For the account receivables not individually significant, the Group assesses theaccount receivables individually for impairment when are of following characteristics:if there is objective evidence indicating the impairment, the impairment loss isrecognized at the difference between the present value of future cash flow less thecarrying amount, and provision is made accordingly. For example, accountreceivables with related parties; account receivables under litigations or arbitrations,or account receivables with obvious indication that debtor cannot fulfill the obligationof repayment.(3)The reversal of bad debts provisionIf there is objective evidence of recovery in value of account receivables, and therecovery can be related to an event occurring after the impairment was recognized,the previously recognized impairment loss is reversed and recognized in profit orloss. However, the reversal shall not result in a carrying amount that exceeds what
                                                            深圳市特力(集团)股份有限公司 2014 年年度报告全文the amortized cost would have been had the impairment loss not been recognizedat the date the impairment is reversed.12、Inventories(1)Classification of inventory
    The Groups inventory mainly include raw materials, goods in stock,
    work-in-progress and low value consumables, etc.(2)Valuation method of inventories upon delivery
    Inventories are initially carried at the actual cost and delivered at the value by weighted average method. The
    low value consumables and packaging should be amortized in equal installment.(3)Basis for determining net realizable value of inventories and provision methodsfor decline in value of inventoriesNet realizable value is the estimated selling price in the ordinary course of businessless the estimated costs of completion, the estimated costs necessary to make thesale and relevant taxes. Net realizable value is determined on the basis of clearevidence obtained, and takes into consideration the purpose of holding inventoriesand effect of post balance sheet events.At the balance sheet date, inventories are measured at the lower of the cost and netrealizable value. If the net realizable value is below the cost of inventories, aprovision for decline in value of inventories is made. The provision for inventoriesdecline in value is normally determined by the difference of the cost of individual itemless its realizable value.After the provision for decline in value of inventories is made, if the circumstancesthat previously caused inventories to be written down below cost no longer exist sothat the net realizable value of inventories is higher than their cost, the originalprovision for decline in value is reversed and the reversal is included in profit or lossfor the period.
    (4)Inventory system is maintained for stock system.13. Held-to-maturity assetHeld-to-maturity investments are initially measured at fair value (deducting bondinterest that has matured but not yet been retrieved) plus relevant transaction costswhen acquired. Interest income is recognized as investment income based on theamortized cost and effective interest rate. If difference between the effective interestrate and coupon rate is negligible, the coupon rate is applicable. The actual interest
                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文rate is determined upon acquisition and remains unchanged during the expectedremaining period, or a shorter period if applicable. Differences between the proceedsand book values of the investments are recognized as investment income ondisposal.If an asset could be sold under the normal conditions with precise decisions fromdirectors of board in an irrevocable agreement in one year, then it would be regardedas held-to maturity asset. The method of calculation is no deprecation or amortizationfrom the beginning-holding-day, instead of choosing the lower one between bookvalue and fair value minus disposal expenses. If the disposable asset is an assetgroup under the accounting standards 8 and the goodwill will be divided into thisasset group, then it should be included the goodwill.It should be disclosed individually when it is classified as held-to-maturity asset. If it isclassified as the liability connecting to the asset group, it should also list separately.14、Long-term equity investmentsThe term of long-term equity investments refers to the investment which has control,joint venture and significant influence over the investees. If the group does not havecontrol, joint venture and significant influence over the investees, then it should beclassified as available-for-sale financial asset or the asset measured at fair value andrecorded into the profits and losses of the current financial assets, details will befound in notes4.9”Financail Instruments”.The term “joint control” refers to the contractually agreed sharing of control over aneconomic activity, which exists only when the investing parties involved in theeconomic activity reach a consensus on sharing control over critical financial andoperating policies concerning that activity. An entity which is subject to joint control bythe investor and other parties is their joint venture.(1)Determination of Investment costFor a business combination involving enterprises under common control, the initialinvestment cost of the long-term equity investment shall be carrying value of theabsorbing partys share of the owners equity of the party being absorbed at the dateof combination. For a business combination not involving enterprise under commoncontrol, the combination cost including the sum of fair value, at the acquisition date,of the assets given, liabilities incurred or assumed, and equity securities issued bythe acquirer. The intermediary expenses incurred by the acquirer in respect ofauditing, legal services, valuation and consultancy services etc. and other associated
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文administrative expenses attributable to the business combination are recognized inprofit or loss when they are incurred. Transaction fee of equity securities or debtsecurities issued by purchasers business combination should be calculated ininitializing confirming amount of equity securities or debt securities.The equity investments other than the long-term equity through combination shall beinitially measured by cost. The cost shall be recognized to the difference in the way ofacquisition of long-term equity investment. Theses ways include the cash purchaseprice the Group actually paid, the fair value of equity security issued by the Group,value specified in the investment contract or agreement, the fair value or carryingvalue of the asset out in the transaction of non-monetary asset exchanges, and thefair value of the long-term equity investment. Other direct cost, tax and necessaryexpenses related to the acquisition of long-term equity investment are recognized ininvestment cost.(2)Subsequent MeasurementCost method shall be adopted in a long-term equity investment where the investingenterprise does not have common control or significant influence over the investee,the investment is not quoted in an active market and its fair value cannot bemeasured reliably. Where an investing enterprise can exercise common control orsignificant influence over the investee, a long-term investment shall be accounted forusing the equity method. When an investing enterprise can no longer exercise jointcontrol or common control nor significant influence over the investee, and its fairvalue cannot be measured reliably, a long-term investment shall be counted asfinancial asset ready-for trade.A long-term equity investment where cost method is adopted in the Companysfinancial statements can exercise controls over the investee.① Cost method of accounting for long-term equity investmentsUnder the cost method, a long-term equity investment is measured at initialinvestment cost. Except for cash dividends or profits declared but not yet paid thatare included in the price or consideration actually paid upon acquisition of thelong-term equity investment, investment income is recognized in the period inaccordance with the attributable share of cash dividends or profit distributionsdeclared by the investee.② Equity method of accounting for long-term equity investmentsWhere the initial investment cost of a long-term equity investment exceeds the
                                                    深圳市特力(集团)股份有限公司 2014 年年度报告全文investing enterprises interest in the fair values of the investees identifiable netassets at the time of acquisition, no adjustment shall be made to the initial investmentcost. Where the initial investment cost of a long-term equity investment is less thanthe investing enterprises interest in the fair values of investees identifiable netassets at the time of acquisition, the difference shall be charged to profit or loss forthe current period, and the cost of the long-term equity investment shall adjustedaccordingly.Under the equity method, the Group recognizes its share of the net profit or loss ofthe investee for the period as investment income or loss for the period. The Grouprecognizes it share of the investees net profit or loss based on the fair value of theinvestees individual separately indentible assets etc. at the acquisition date aftermaking appropriate adjustments to confirm with the Groups accounting policies andaccounting period. Unrealized profits or losses resulting from the Groupstransactions with its associates and joint ventures are recognized as investmentincome or loss to the extent that those attributable to the Groups equity interest areeliminated. However, unrealized losses resulting from the Groups transactions withits investees on the transferred assets, in accordance with "Accounting Standards forEnterprises No. 8 - Impairment of Assets", are not eliminated. Changes in ownersequity of the investee other than net profit or loss are correspondingly adjusted to thecarrying amount of the long-term equity investment, and recognized as othercompressive income which is included in the capital reserve.When the investee is recognized net losses, reduce the carrying value of long-termequity investments and long-term equity of net investment (in substance) in investeeto zero. In addition, the Group has the obligations on additional losses, then theexpected obligation as estimated liabilities and included in the current investmentlosses. Where the net profit from investee units, restoration confirm the amount ofrevenue sharing after offset the amount of unrecognized loss sharing.For long-term equity investments in associates and joint ventures which had beenheld by the Group before its first time adoption of Accounting Standards for BusinessEnterprises in 01-01-2007, where the initial investment cost of a long-term equityinvestment exceeds the Groups interest in the investees net assets at the time ofacquisition, the excess is amortized and is recognized in profit or loss on a straightline basis over the original remaining life.③ Acquisition of minority interest
                                                      深圳市特力(集团)股份有限公司 2014 年年度报告全文The difference between newly increased equity investment due to acquisition ofminority interests and portion of net asset cumulatively calculated from the acquisitiondate is adjusted as capital reserve. If the capital reserve is not sufficient to absorb thedifference, the excess are adjusted against returned earnings.④ Disposal of long-term equity investmentWhere the parent company disposes long-term investment in a subsidiary without achange in control, the difference in the net asset between the amount of disposedlong-term investment and the amount of the consideration paid or received isadjusted to the owners equity. If the disposal of long-term investment in a subsidiaryinvolves loss of control over the subsidiary, the related accounting policies in Note 4.5applies.(3) The accounting methods described at consolidated financial statementsOn disposal of a long-term equity investment, the difference between the proceedsactually received and receivable and the carrying amount is recognized in profit orloss for the period.For along-term equity investment accounted for using the equity method, the amountincluded in the owners equity attributable to the percentage interest disposed istransferred to profit or loss for the period.For any retained interest, it shall be subsequently measured according to the relatedaccounting policies in regard of long-term equity investments or financial assets asdescribed above if its carrying amount is recognized as long-term equity investmentsor other related financial assets. Retroactive adjustment is made on the basis ofrelevant policies if the retained interests are settled from cost method to equitymethod.Recognition of investee under common control or significant influenceControl is the power to govern the financial and operating policies of an enterprise soas to obtain benefits from its operating activities. Common control is the contractuallyagreed sharing of control over an economic activity, and exists only when thestrategic financial and operating decisions relating to the activity require theunanimous consent of the parties sharing control. Significant influence is the power toparticipate in the financial and operating policy decisions of the investee but is notcontrol or joint control over those policies. When determining whether an investingenterprise is able to exercise control or significant influence over an investee, theeffect of potential voting rights of the investee held the investing enterprise or other
                                                     深圳市特力(集团)股份有限公司 2014 年年度报告全文parties that are currently exercisable or convertible shall be considered.The group would lose the power of control over subsidiaries gradually via multipletransactions. If it is a package of transactions, then every transaction would betreated as lose control power. The difference of disposable value and carryingamount would be regarded as other comprehensive profits until the power is certainlyensured that the group lost the power of control.15、Investment propertiesInvestment property is property held to earn rental or for capital appreciation or both.It includes a land use right that is leased out, a land use right held for transfer uponcapital appreciation, and a building that is leased out.The investment properties shall be initially measured in light of their cost whengetting it and make a follow-up measurement to the investment real estate throughthe cost pattern on the date of the balance sheet. The test method of depreciation orimpairment of the buildings is the same as fixed assets, the test method ofdepreciation or impairment of the land use rights is the same as intangible assets.The details of assess method and impairment provision for investment properties arein Note4.20 “Impairment of non-current non-financial assets”.Where an investment property is disposed or no longer in use permanently and noeconomic benefits shall be obtained from the disposal, derecognized the investmentproperty. The income from sale, transfer or disposal of the investment property isrecorded in the profit or loss after deduction of its carrying amount and related tax.16、Fixed assets(1)The conditions of recognitionFixed assets refers to the tangible assets that are held for the sake of producingcommodities, rendering labor service, renting or business management and theiruseful life is in excess of one fiscal year.(2)The method for depreciationFixed assets are stated at cost and consider the impact of expected costs ofabandoning the initial measurement. From the following month of state of intendeduse, the straight-line method is used for different categories of fixed assets to takedepreciation. The recognition of the classification, useful life and estimated residualrate are as follows:
                                                          深圳市特力(集团)股份有限公司 2014 年年度报告全文
                   Category        Expected useful life      Estimated residual value(%)   Depreciation(%)
    Building & construction                    35                             3                        2.77
    Machines & equipments                      12                             3                        8.08
    Vehicles                                    7                             3                        13.86
    Electronic appliances                       7                             3                        13.86
    Office and other equipment                  7                             3                        13.86
    Private housing renovation costs           10                             0                        10.00Expected net residual value of fixed assets is the balance of the Group currentlyobtained from the disposal of the asset less the estimated costs of disposal amount,assuming the asset is out of useful life and state the expected service life in the end.(3) Measurement and recognition of fixed assetsImpairment and provisions of fixed assets are disclosed on Note 4.17 “Impairment ofnon-current non-financial assets”.(4)OthersA fixed asset is recognized only when the economic benefits associated with theasset will probably flow to the Company and the cost of the asset can be measuredreliably. Subsequent expenditure incurred for a fixed asset that meet the recognitioncriteria shall be included in the cost of the fixed asset, and the carrying amount of thecomponent of the fixed asset that is replaced shall be derecognized. Otherwise, suchexpenditure shall be recognized in profit or loss in the period in which they areincurred.The revenue from selling or transferring, or disposing a fixed asset is booked intoprofit and loss after deduction of carrying value and related tax.The Group conducts a review of useful life, expected net realizable value anddepreciation methods of the fixed asset at least on an annual base. Any change isregarded as change in accounting estimates.17、Construction in progressConstruction in progress is measured at its actual cost. The actual costs includevarious construction expenditures during the construction period and other relevantcosts. Construction in progress is transferred to a fixed asset when it is ready forintended use.Testing method for provision impairment of construction in progress and accrued
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文method for provision impairment please refer to Note 4.17 Impairment of non-currentfinancial assets.18、Borrowing costsThe borrowing costs shall include interests on borrowings, amortization of discountsor premiums on borrowings, ancillary expenses, and exchange balance on foreigncurrency borrowings. Where the borrowing costs incurred to an enterprise can bedirectly attributable to the acquisition and construction or production of assets eligiblefor capitalization, it shall be capitalized and recorded into the costs of relevant assets.Other borrowing costs shall be recognized as expenses on the basis of the actualamount incurred, and shall be recorded into the current profits and losses.Where funds are borrowed for a specific-purpose, the amount of interest to becapitalized is the actual interest expense incurred on that borrowing for the periodless any bank interest earned from depositing the borrowed funds before being usedon the asset or any investment income on the temporary investment of those funds.Where funds are borrowed for a general-purpose, the amount of interest to becapitalized on such borrowings is determined by applying a weighted averageinterest rate to the weighted average of the excess amounts of accumulatedexpenditure on the asset over and above the amounts of specific-purpose borrowings.During the capitalization period, exchange differences related to a specific-purposeborrowing denominating in foreign currency are all capitalized. Exchange differencesin connection with general-purpose borrowings are recognized in profit or loss in theperiod in which they are incurred.Assets qualified for capitalization are the fixed assets, investment properties orinventories which need a long time of construction or production activities beforeready for intended used or sale. Capitalization of borrowing costs is suspendedduring periods in which the acquisition, construction or production of a qualifyingasset is interrupted by activities other than those necessary to prepare the asset forits intended use or sale, when the interruption is for a continuous period of more than3 months. Borrowing costs incurred during these periods recognized as an expensefor the current period until the acquisition, construction or production is resumed.19、Intangible assets(1)Recognition and calculation of intangible assetThe term “intangible asset” refers to the identifiable non-monetary assets withoutphysical shape, possessed or controlled by enterprises.
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文The intangible assets are initially measured by its cost. Expenses related to intangibleassets, if the economic benefits related to intangible assets are likely to flow into theenterprise and the cost of intangible assets can be measured reliably, shall berecorded as cost of intangible assets. The expenses other than this shall be bookedin the profit or loss when they occur.Land use rights that are purchased by the Group are accounted for as intangibleassets. Buildings, such as plants that are developed and constructed by the Group,and relevant land use rights and buildings, are accounted for as intangible assets andfixed assets, respectively. Payments for the land and buildings purchased areallocated between the land use rights and the buildings; if they cannot be reasonablyallocated all of the land use rights and buildings are accounted for as fixed assets.When an intangible asset with a definite useful life is available for use, its original costis amortized over its estimated useful life using the straight-line method. An intangibleasset with an indefinite useful life is not amortized.
    For an intangible asset with a definite useful life, the Group reviews the useful lifeand amortization method at the end of the period, and makes adjustment whennecessary. An additional review is also carried out for useful life of the intangibleassets with indefinite useful life. If there is evidence showing the foreseeable limitperiod of economic benefits generated to the enterprise by the intangible assets, thenestimate its useful life and amortize according to the policy of intangible assets withdefinite useful life.(2)Research and Development expendituresThe expenditures of the internal research could be divided into two phrases: aresearch phrase and a development phrase.The expenditures happened during research phrase should be regarded as thecurrent profit and loss.In the research phase of an internal project, an entity cannotdemonstrate that an intangible asset exists that will generate probable futureeconomic benefits. Therefore, this expenditure is recognised as an expense when itis incurred.An intangible asset arising from development (or from the development phase of aninternal project) shall be recognised if, and only if, an entity can demonstrate all of thefollowing:(a) the technical feasibility of completing the intangible asset so that it will beavailable for use or sale;
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文(b) its intention to complete the intangible asset and use or sell it;(c) how the intangible asset will generate probable future economic benefits. Amongother things, the entity can demonstrate the existence of a market for the output ofthe intangible asset or the intangible asset itself or, if it is to be used internally, theusefulness of the intangible asset;(d) the availability of adequate technical, financial and other resources to completethe development and to use or sell the intangible asset;(e) its ability to measure reliably the expenditure attributable to the intangible assetduring its development.( 3 ) Methods of impairment assessment and determining the provision forimpairment losses of intangible assetsTesting method for provision impairment of intangible assets and accrued method forprovision impairment please refer to Note 4.20 Impairment of non-current financialassets.20、Long-term prepaid expensesLong-term prepaid expenses represent expenses incurred that should be borne andamortized over the current and subsequent period together of more than one year.Long-term prepaid expenses are amortized by using straight line method.21、Long-term assets impairmentOn each balance sheet date, the Group will make judgments to determine whetherthere are signs for impairment to the fixed assets ,construction in progress, definiteintangible assets, investment properties& equity investment in subsidiaries& jointventures& jointly run business measured using the cost method etc. non-current andnon-financial assets. If there are signs for impairment, the impairment should betested by estimating the recoverable amount. Goodwill, indefinite intangible assetsand intangible assets having not reached the usable condition, should be yearlytested for impairment no matter whether there are signs for impairment.The result of impairment test demonstrates that the recoverable amount is less thanits carrying amount, the difference will be recorded as provision for impairment anddebited as impairment loss. The recoverable amount equals to the greater of 1)fairvalue less disposal expenses and 2) present value of the predicted future cash flows.The fair value of the assets is determined by the sale contract price of fair trade;When there are no sale contracts but exist active market ,the fair value will bedetermined with the quotation from the buyer; When there exist neither sale contracts
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文nor active market, the assets fair value will be determined by the best informationavailable.The disposal expenses include the legal expenses, related taxes, delivery fees andother direct fees incurred for making the assets reach the salable condition. Thepresent value of the predicted future cash flows is calculated according to thepredicted future cash flows generated from the continuous use of the assets and finaldisposal discounted with the applicable discounted rate. The provision for impairmenttest should be recognized based on the individual asset. If it is hard to estimate therecoverable amount to individual asset, the recoverable amount of the assets groupof which the individual assets are included should be determined. Assets group is thesmallest unit that can independently generate the cash inflow.For the goodwill separately displayed on the financial statement, when making theimpairment test, the carry value of the goodwill should be allocated to assets group orthe group of assets group predicted to be benefit from the synergistic effect from theenterprises combination. When the rest result shows that the recoverable of theassets group or the group of assets group having been allocated with the relevantgoodwill is less than the carrying amount, the related impairment loss should berecognized. The impairment losses will firstly reduce the book value of the goodwillallocated and then reduce the book value of each asset of the assets group or thegroup of assets group according to the percentage of each asset to the assets groupor the group of assets group beside the goodwill.The impairment loss of the above assets would not be reversed back once they arerecognized.22.Employee benefitsEmployee benefits payable shall be recognized as liabilities in the accounting periodsduring which the employees provide services to the Group. They are all forms ofconsideration given by an entity in exchange for service rendered by employees orfor the termination of employment: short-term employee, post-employment benefitsand other long-term employee benefits.Short-term employee benefits include items such as the following, if expected to besettled wholly before twelve months after the end of the annual reporting period inwhich the employees render the related services:(a) wages, salaries and social security contributions;(b) paid annual leave and paid sick leave;
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文(c) profit-sharing and bonuses; and(d) non-monetary benefits (such as medical care, housing, cars and free orsubsidised goods or services) for current employees.Post-employment benefits include items such as the following:(a) retirement benefits (eg pensions and lump sum payments on retirement); and(b) other post-employment benefits, such as post-employment life insurance andpost-employment medical care.In the event that the Group terminates the employment relationship with employeesunilaterally before the end of the employment contracts, or offers to compensate theemployees in order to encourage them to accept voluntary redundancy, if theCompany has formally formulated plans for termination of the employmentrelationship or offer for voluntary redundancy, and the plans will be implementedshortly afterwards, compensations for redundancy shall be recognized as estimatedliabilities and charged to profit or loss for the current period.The plan for early retirement of employees shall be treated in the same way as theabove compensations for redundancy. The salaries and social insurance premiumspaid by the Company to employees subject to early retirement during the period fromtermination of service provision to normal retirement shall be recognized asestimated liabilities and charged to profit or loss for the current period(compensations for redundancy).23.Accrued liabilitiesAccrued liabilities (or Provisions) are recognized when following obligations related toa contingency are satisfied simultaneously. They are (a) such obligation is thepresent obligation of the Group, (b)it is probable that an outflow of economic benefitswill be required to settle the obligation, and (c) the amount of the obligation can bemeasured reliably.The amount recognized as a provision is the best estimate of the considerationrequired to settle the present obligation at the balance sheet date, taking into accountfactors pertaining to a contingency such as risks, uncertainties and time value ofmoney.Where all or some of the expenditure required to settle a provision is expected to bereimbursed by a third party, the reimbursement is recognized as a separate assetonly when it is virtually certain that reimbursement will be received, and the amount of
                                                深圳市特力(集团)股份有限公司 2014 年年度报告全文reimbursement recognized does not exceed the carrying amount of the provision.(1) Onerous contractsAn onerous contract is a contract in which the unavoidable costs of meeting theobligations under the contract exceed the economic benefits expected to be receivedunder it. The exceeding part over the assets in the contract shall be recognized as aprovision when an executor contract becomes an onerous contract and the obligationarising under the onerous contract satisfies the requirements of provisions.(2) Restructuring ObligationThe amount of a restructuring provision shall be recognized by the total directexpenditures arising from the restructuring when the enterprise has a detailed,
    formal plan for the restructuring, and   a public announcement of the plan has beenmade for restructuring and above requirements for the provision mentioned aboveare satisfied.[For the restructuring obligation carried for the portion of business for sale, theobligation related to the restructuring can only be recognized when the Group hascommitted for the sales of portion of the business (signing the selling agreement withtermination)]24. Revenue(1)Revenue from sales of goodsThe Group has transferred to the buyer the significant risks and rewards of ownershipof the goods; the Group retains neither continuing managerial involvement to thedegree usually associated with ownership nor effective control over the goods sold;the associated costs incurred or to be incurred can be measured reliably.The group sales vehicles as the main transaction, so sales revenue should beascertained after ensuring accept cash or the right to collect cash or cashequivalents.(2)Revenue from servicesWhen the outcome of a transaction involving the rendering of services can beestimated reliably at the balance sheet date, revenue associated with the transactionis recognized using the percentage of completion method, or otherwise, the revenueis recognized to the extent of costs incurred that are expected to be recoverable. Thestage of completion of a transaction for rendering services is determined based on[survey of work performed / services performed to the date of as a percentage of total
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文services to be performed / the proportion that costs incurred to date bear to theestimated total costs of the transaction]The outcome of a transaction involving rendering of services can be estimatedreliably when all of the following conditions are satisfied:
    1)    the amount of revenue can be measured reliably;
    2)    it is probable that the associated economic benefits will flow to the Group;
    3)    the stage of completion of the transaction can be measured reliably;4) the costs incurred and to be incurred for the transaction can be measuredreliably.If the outcome of a transaction involving rendering of services cannot be estimatedreliably, the revenue is recognized by the cost incurred and estimated compensation,and the actual cost is booked into profit and loss. No revenue is recognized if the costincurred cannot be recovered.For contract or agreement entered between the Group and other enterprises withsales of goods and rendering services, if part of goods selling and the part ofrendering service can be separated and measured individually, they are settledseparately. If the part of goods selling and the part of rendering service cannot beseparated or they can be separated but cannot be measured individually, the parts inthe contract shall be treated as goods of selling.(3)Revenue from royalty revenueAccording to the contract or agreement, the revenue is recognized on an accrualbasis.(4)Revenue from interestsThe amount of interest revenue should be measured and confirmed in accordancewith the length of time for which the enterprise's cash is used by others and the actualinterest rate.25. Government GrantsGovernment grants are transfer of monetary assets and non-monetary assets fromthe government to the Group at no consideration, excluding the capital invested bythe government as equity owner. Government grant can be classified as grant relatedto the assets and grants related to the income.
                                                 深圳市特力(集团)股份有限公司 2014 年年度报告全文If a government grant is in the form of a transfer of a monetary asset, it is measuredat the amount received or receivable. If a government grant is in the form of anon-monetary asset, it is measured at fair value. If the fair value cannot be reliablydetermined, it is measured at a nominal amount. A government grant measured at anominal amount is recognized immediately in profit or loss for the period.A government grant related to an asset is recognized as deferred income, and evenlyamortized to profit or loss over the useful life of the related asset. For a governmentgrant related to income, if the grant is a compensation for related expenses or lossesto be incurred in subsequent period, the grant is recognized as deferred income, andrecognized in profit or loss over the periods in which the related costs are recognized.If the grant is a compensation for related expenses or losses already incurred, thegrant is recognized immediately in profit or loss for the period.For repayment of a government grant already recognized, if there is a relateddeferred income, the repayment is offset against the carrying amount of the deferredincome, and any excess is recognized in profit or loss for the period. If there is norelated deferred income, the repayment is recognized immediately in profit or loss forthe period.26. Deferred income tax assets and deferred income tax liabilitiesAt the balance sheet date, deferred tax assets and liabilities are measured at the taxrates that are expected to apply to the period when the asset is realized or the liabilityis settled, according to the requirements of tax laws. The measurement of deferredtax assets and deferred tax liabilities reflects the tax consequences that would followfrom the manner in which the Group expects at the balance sheet date, to recover theassets or settle the liabilities.For temporary differences between the carrying amount of certain assets or liabilitiesand their tax base, or between the nil carrying amount of those items that are notrecognized as assets or liabilities and their tax base that can be determinedaccording to tax laws, deferred tax assets and liabilities are recognized using thebalance sheet liability method.For temporary differences associated with the initial recognition of goodwill and theinitial recognition of an asset or liability arising from a transaction (not a businesscombination) that affects neither the accounting profit nor taxable profits (ordeductible losses) at the time of transaction, no deferred tax asset or liability isrecognized.
                                                   深圳市特力(集团)股份有限公司 2014 年年度报告全文For taxable temporary differences associated with investments in subsidiaries andassociates, and interests in joint ventures, no deferred income tax liability related isrecognized except where the Group is able to control the timing of reversal of thetemporary difference and it is probable that the temporary difference will not reversein the foreseeable future.All deferred income tax liabilities arising from taxable temporary differences exceptthe ones mentioned above are recognized.For temporary deductible differences associated with the initial recognition of anasset or liability arising from a transaction (not a business combination) that affectsneither the accounting profit nor taxable profits (or deductible losses) at the time oftransaction, no deferred tax asset is recognized.For taxable temporary deductible differences associated with investments insubsidiaries and associates, and interests in joint ventures, no deferred income taxasset related is recognized if it is impossible to reversal the temporary difference inthe foreseeable future, or it is not probable to obtain taxable income which can beused for the deduction of the temporary difference in the future.Except mentioned above, the Group recognizes other deferred income tax assetsthat can deduct temporary differences to the extent that it is probable that taxableprofits will be available against which the deductible temporary differences can beutilized.For the deductible losses and tax credit that can be carried forward, deferred taxassets for deductible temporary differences are recognized to the extent that it isprobable that taxable profits will be available against which the deductible temporarydifferences can be utilized.At the balance sheet date, deferred tax assets and liabilities are measured at the taxrates according to tax lawsthat are expected to apply in the period in which the assetis realized or the liability is settled.At the balance sheet date, the Group reviews the carrying amount of deferred taxassets. If it is no longer probable that sufficient taxable profit will be available in futureperiods to allow the benefits of the deferred tax assets to be used, the Group reducesthe carrying amount of deferred tax assets. The amount of such reduction is reversedwhen it becomes probable that sufficient taxable profit will be available.27. Leases
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文(1) Operating Lease①The Group as Lessee under Operating LeaseLease payments under an operating lease are recognized by a lessee on astraight-line basis over the lease term, and either included in the cost of the relatedasset or charged to profit or loss for the current period. The contingent rents shall berecorded in the profit or loss of the period in which they actually arise.②The Group as Leaser under Operating LeaseLease income from operating leases shall be recognized by the leaser in profit or losson a straight-line basis over the lease term. Initial direct cost of significance in amountshall be capitalized when incurred. If another basis is more systematic and rational,that basis may be used. Contingent rents are credited to profit or loss in the period inwhich they actually arise.(2)Financing Lease①The Group as Lessee under Operating LeaseFor an asset that is held under a finance lease, at the lease commencement, theleased asset is recorded at the lower of its fair value at the lease commencement andthe present value of the minimum lease payments, and the minimum lease paymentis recorded as the carrying amount of the long-term payables; the difference betweenthe recorded amount of the leased asset and the recorded amount of the payable isaccounted for as unrecognized finance charge, Initial direct costs incurred by thelessee during the process of negotiating and securing the lease agreement shall beadded to the amount recognized for the leased asset.The net amount of minimum lease payment deducted by the unrecognized financeshall be separated into long-term liabilities and long-term liability within one year forpresentation.Unrecognized finance charge shall be computed by the effective interest methodduring the lease term. Contingent rent shall be booked into profit or loss whenactually incurred.②The Group as Leaser under Operating LeaseFor an asset that is leased out under a finance lease, the aggregate of the minimumlease receipts at the inception of the lease and the initial direct costs is recorded as afinance lease receivable, and unguaranteed residual value is recorded at the sametime; the difference between the aggregate of the minimum lease receipt, initial direct
                                                  深圳市特力(集团)股份有限公司 2014 年年度报告全文costs, and unguaranteed residual value, and the aggregate of their present values, isrecognized as unearned finance income, which is amortized using the effectiveinterest rate method over each period during the lease term.Finance lease receivable less unearned finance income shall be separated intolong-term liabilities and long-term liability within one year for presentation.Unearned finance income shall be computed by the effective interest method duringthe lease term. Contingent rent shall be credited into profit or loss in which actuallyincurred.28. Material accounting judgments and accounting estimationsBecause of the inherent uncertainties of the operating activities, the Group needs tomake judgments, estimations and assumptions to the financial statement itemswhose carrying amount cannot be accurately measured. Those judgments,estimations and assumptions are made based on the managements historicalexperience and taking other relevant factors into account. Those judgments,estimations and assumptions would influence the reported amount of revenue,expense, asset and liability and disclosure of the contingency liability on the balancesheet date. However, the actual result caused by the uncertainty of these estimationsmay be different with the present estimation made by the management, which maycause significant adjustments to the carrying amount of the influenced assets and
    liabilities   in the future.The Group are making periodical review on the judgments, estimations andassumptions mentioned above based on the premise of going concern. For thechanges of estimations that only influence the current period, the influenced amountwill be recognized in the current period. For the changes of estimations that not onlyinfluence the current period ,but also affect the future periods, the influenced amountwill be recognized in the current period and future period.As of the balance sheet date, the material areas that need to be judged ,estimatedand assumed are listed below:(1) The classification of leaseThe lease are classified into operating lease and finance lease, according to the“Accounting Standards for Business Enterprise No.21-Lease” .When making theclassification, the management need to make analysis and judgment about whetherall risk and reward related with the ownership of assets leased out have beensubstantially transferred to the lessee or not ,or whether all risk and reward related