China Railway Signal & Communication Corporation Limited(688009) audited financial statements for 2021
catalogue
Page I. audit report 1 – 5 II. Audited financial statements
Consolidated balance sheet 6 – 7 consolidated income statement 8 – 9 consolidated statement of changes in shareholders’ equity 10 – 11 consolidated cash flow statement 12 – 13 company balance sheet 14 – 15 company profit Table 16
Statement of changes in shareholders’ equity 17-18 cash flow statement 19-20 notes to financial statements 21-187 supplementary information
1. Detailed statement of non recurring gains and losses 1
2. Return on net assets and earnings per share 2
RMB in 2021
1、 Basic information
China Railway Signal & Communication Corporation Limited(688009) (hereinafter referred to as “the company”) was approved by the state owned assets supervision and Administration Commission of the State Council (hereinafter referred to as “SASAC”) on August 17, 2010 in accordance with the relevant provisions of Chinese laws and administrative regulations, with China Railway Communication and signaling Group Co., Ltd. (hereinafter referred to as “Tonghao group”) as the initiator, together with China Machinery Industry Group Co., Ltd China Chengtong Holding Group Co., Ltd., China Guoxin Holding Co., Ltd. and CICC Jiacheng Investment Management Co., Ltd. (these four companies are hereinafter referred to as “other promoters”) jointly initiated and established a joint stock limited company on December 29, 2010. The headquarters of the company is located on the 20th floor of block a, China Railway Signal & Communication Corporation Limited(688009) building, yard 1, South Road of Automobile Museum, Fengtai District, Beijing. Approved by the reply on approving China Railway Signal & Communication Corporation Limited(688009) issuance of overseas listed foreign shares (zjxk [2015] No. 1630) of China Securities Regulatory Commission, the company listed and issued 1789819000 H shares with a par value of RMB 1 per share on the stock exchange of Hong Kong from July to September 2015, with an issue price of HK $6.30 per share. The total financing amount before deducting the issuance expenses was about HK $11275859700, These H shares were listed and traded on the main board of the stock exchange of Hong Kong in August and September 2015. The four state-owned shareholders of the company, Tonghao group, China Machinery Industry Group Co., Ltd., China Chengtong Holding Group Co., Ltd. and China Guoxin Holding Co., Ltd., transferred a total of 178982000 state-owned legal person shares into H shares and transferred them to the Social Security Fund Council of the people’s Republic of China from August to September 2015.
Approved by the reply on Approving the registration of China Railway Signal & Communication Corporation Limited(688009) initial public offering (zjxk [2019] No. 1135) of China Securities Regulatory Commission, as of July 16, 2019, the company has listed and issued 1800000000 ordinary shares with a par value of RMB 1 per share on the science and Innovation Board of Shanghai Stock exchange at an issue price of RMB 5.85 per share, The total fund-raising amount before deducting the issuance expenses is RMB 1053000000000. These ordinary shares were listed and traded on the science and Innovation Board of Shanghai Stock Exchange on July 22, 2019.
As of December 31, 2021, the company has issued 10589819000 shares in total, and the cumulative share capital is RMB 10589819000.
The company and its subsidiaries (collectively referred to as “the group”) are mainly engaged in: rail transit control system design and integration, mainly including providing survey, design and comprehensive planning of control system for rail transit control system engineering; Manufacturing of rail transit control system equipment, mainly including the production and sales of signal system, communication system, basic equipment, information system and other products; And system delivery services of rail transit control system, including providing construction, installation, testing, operation and maintenance services for rail transit control system engineering; And municipal engineering contracting and construction services of other projects.
The parent company and ultimate controller of the company are China Communications Group.
The financial statements have been approved by the board of directors of the company on March 25, 2022.
The consolidation scope of the consolidated financial statements is determined on the basis of control. See note V for the changes during the reporting period.
Notes to financial statements (Continued)
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2、 Preparation basis of financial statements
The financial statements are prepared in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and the specific accounting standards, application guidelines, interpretations and other relevant provisions issued and revised later (collectively referred to as “accounting standards for business enterprises”).
The financial statements are presented on a going concern basis.
When preparing the financial statements, except for some financial instruments, the valuation principle is historical cost. If an asset is impaired, the corresponding impairment provision shall be withdrawn in accordance with relevant regulations. 3、 Important accounting policies and accounting estimates
The group has formulated specific accounting policies and accounting estimates according to the actual production and operation characteristics, as follows: 1 Statement of compliance with accounting standards for business enterprises
The financial statements of the company as of December 31, 2021 and reflect the true and complete cash flow of the company as of December 31, 2021.
2. Accounting period
The accounting year of the group is the Gregorian calendar year, i.e. from January 1 to December 31.
3. Recording currency
The recording currency of the group and the currency used in the preparation of the financial statements are RMB. Unless otherwise specified, it is expressed in RMB. 4. Business combination
Business combinations are divided into business combinations under the same control and business combinations not under the same control.
Business combination under the same control
A business combination under the same control is a business combination in which the enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger, and the control is not temporary. For business combinations under the same control, the party that obtains control over other enterprises participating in the merger on the merger date is the merging party, and other enterprises participating in the merger are the merged party. The merger date refers to the date on which the combining party actually obtains control over the merged party. The assets and liabilities acquired by the combining party in the business combination under the same control (including the goodwill formed by the final controller’s acquisition of the combined party) shall be subject to relevant accounting treatment based on the book value in the final controller’s financial statements on the combination date. For the difference between the book value of the net assets obtained by the combining party and the book value of the merger consideration paid (or the total face value of the issued shares), adjust the capital stock premium in the capital reserve and the balance transferred from the capital reserve of the original system. If it is insufficient to offset, adjust the retained earnings.
Notes to financial statements (Continued)
RMB in 2021
3、 Important accounting policies and accounting estimates (Continued) Business combination (Continued)
Business combination not under the same control
A business combination not under the same control is a business combination in which the enterprises participating in the combination are not ultimately controlled by the same party or the same parties before and after the combination. For business combinations not under the same control, the party that obtains control over other enterprises participating in the merger on the acquisition date is the acquirer, and other enterprises participating in the merger are the acquiree. The date of purchase refers to the date on which the purchaser actually obtains control over the acquiree.
The identifiable assets, liabilities and contingent liabilities of the acquiree obtained in the business combination not under the same control shall be measured at fair value on the acquisition date.
The difference between the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is greater than the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill and subsequently measured at cost less accumulated impairment losses. If the sum of the fair value of the merger consideration paid (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the identifiable assets The measurement of the fair value of liabilities and contingent liabilities, the fair value of the merger consideration paid (or the fair value of equity securities issued) and the fair value of the equity held by the acquiree before the acquisition date shall be reviewed, If the sum of the fair value of the merger consideration paid after review (or the fair value of the equity securities issued) and the fair value of the equity of the acquiree held before the acquisition date is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference shall be included in the current profit and loss. 5. Consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer to the entities controlled by the company (including the separable parts of enterprises and invested units, as well as the structured entities controlled by the company).
When preparing consolidated financial statements, subsidiaries adopt accounting periods and accounting policies consistent with those of the company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions between companies within the group are fully offset at the time of consolidation.
If the current loss shared by the minority shareholders of a subsidiary exceeds the share of the minority shareholders in the shareholders’ equity of the subsidiary at the beginning of the year, the balance shall still be offset against the reduced shareholders’ equity.
For subsidiaries acquired through business combination not under the same control, the operating results and cash flow of the acquiree shall be included in the consolidated financial statements from the date when the group obtains control until the group terminates its control. When preparing the consolidated financial statements, the financial statements of subsidiaries shall be adjusted on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
For subsidiaries obtained through business combination under the same control, the operating results and cash flow of the combined party shall be included in the consolidated financial statements from the beginning of the current period. When preparing and comparing the consolidated financial statements, the relevant items of the previous financial statements are adjusted, which is regarded as the reporting entity formed after the merger has existed since the final controller began to implement control.
If changes in relevant facts and circumstances lead to changes in one or more of the control elements, the group reassesses whether to control the investee.
Under the condition of not losing control, the change of minority shareholders’ equity is regarded as equity transaction.
Notes to financial statements (Continued)
RMB in 2021
3、 Important accounting policies and accounting estimates (Continued) Classification of joint venture arrangement and joint operation
Joint venture arrangements are divided into joint ventures and joint ventures. Joint operation refers to the joint arrangement in which the joint venture party enjoys the relevant assets of the arrangement and bears the relevant liabilities of the arrangement. A joint venture refers to a joint venture arrangement in which the joint venture party has rights only to the net assets of the arrangement.
The joint venture confirms the following items related to its share of interests in joint operation: confirm the assets held separately and jointly held assets according to its share; Recognize the liabilities undertaken individually and jointly according to their shares; Recognize the income generated from the sale of its share of joint operation output; Recognize the income generated from the sale of output in the joint operation according to its share; Recognize the expenses incurred separately and the expenses incurred in joint operation according to their share. 7. Cash and cash equivalents
Cash refers to the
