Shanxi Coking Coal Energy Group Co.Ltd(000983) : audit report of Pearl coal industry from January to July 2019, 2020 and 2021
Shanxi Huajin Mingzhu Coal Industry Co., Ltd
Audit report and financial statements
(from January 1, 2019 to July 31, 2021)
Table of contents page
1、 Audit report 1-3 II. Financial statements
Balance sheet 1-2 income statement 3 cash flow statement 4 statement of changes in owner’s equity 5-7 notes to financial statements 1-100
Shanxi Huajin Mingzhu Coal Industry Co., Ltd
Notes to financial statements
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company (I) overview of the company
Shanxi Huajin Mingzhu Coal Industry Co., Ltd. (hereinafter referred to as “the company” or “Mingzhu company”) is a limited liability company reorganized after the merger and reorganization of the original Jixian Mingzhu Coal Mine Co., Ltd. with Huajin Coking Coal Co., Ltd. as the integration subject according to the relevant provisions on the merger and reorganization of coal enterprises integrating resources in Shanxi Province, On November 15, 2009, the company’s name was changed from Jixian Mingzhu Coal Mine Co., Ltd. to Mingzhu company with the approval of the Department of industry and commerce. On February 20, 2010, the industrial and commercial registration procedures for the change of enterprise legal person and equity were handled, and the legal representative was changed from Li Jinyu to Mu Huaping; After the change, the registered capital is 50 million yuan. Huajin Coking Coal Co., Ltd. holds 51% and the rest are held by natural persons, of which Li Jinyu holds 25% and Gao Jianping holds 24%.
On August 25, 2010, Shanxi Provincial Department of coal industry reconstructed and expanded the production capacity of Mingzhu company from 600000 tons to 900000 tons with the reply to the preliminary design of Mingzhu company’s mine merger, reorganization and integration project [Jin Mei ban Ji Fa (2010) No. 896). On January 25, 2011, the Department of coal industry of Shanxi Province approved the company to officially enter the joint commissioning with the reply on the joint commissioning of the mine merger, reorganization and integration project of Mingzhu company (Jin Mei ban Ji Fa (2011) No. 173). On June 26, 2011, Shanxi Wenda certified public accountants Co., Ltd. issued jinwendajishen (2011) No. 004 audit report on the final financial accounts of the completed capital construction project of mine merger, reorganization and integration of Mingzhu company. In June 2011, the reconstruction and expansion of the company was completed and officially turned into a production mine.
On February 1, 2018, the company renewed the business license with unified social credit code of 911400007810499×7 at Shanxi Administration for Industry and commerce.
Company domicile: Wangjiahe village, Tunli Town, Ji County, Linfen City, Shanxi Province;
Legal representative: Zhao Li;
Registered capital: 50 million yuan only;
Company type: other limited liability companies.
2、 Preparation basis of financial statements (I) preparation basis
The financial statements are prepared in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards, guidance for the application of accounting standards for business enterprises, interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance (hereinafter collectively referred to as “accounting standards for business enterprises”), And the relevant provisions of the rules for the preparation of information disclosure by companies offering securities to the public No. 15 – General Provisions on financial reports of the China Securities Regulatory Commission.
（2） Going concern
The financial statements are prepared on the basis of going concern.
3、 Important accounting policies and accounting estimates (I) statement of compliance with accounting standards for business enterprises
The financial statements comply with the requirements of the accounting standards for business enterprises issued by the Ministry of finance, and truly and completely reflect the company’s financial status as of December 31, 2019, December 31, 2020 and July 31, 2021, as well as the company’s operating results and cash flow in 2019, 2020 and January July 2021.
（2） Accounting period
The current accounting period of the company is 2019, 2020 and January July 2021.
（3） Business cycle
The current business cycle of the company is 2019, 2020 and January July 2021.
（4） Recording currency
The company adopts RMB as the bookkeeping base currency.
（5） Criteria for determining cash and cash equivalents
Cash refers to the company’s cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to the short-term, highly liquid investments held by the company, which are easy to be converted into known amounts of cash and have little risk of value change.
（6） Financial instruments
The company recognizes a financial asset, financial liability or equity instrument when it becomes a party to the financial instrument contract. 1. Classification of financial instruments
Accounting policies from January 1, 2019
According to the company’s business model of managing financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified into: financial assets measured at amortized cost Financial assets measured at fair value with changes included in other comprehensive income and financial assets measured at fair value with changes included in current profit and loss.
The company will meet the following conditions at the same time and is not designated to be measured at fair value, and its changes will be included in the current period
Financial assets in profit or loss are classified as financial assets measured at amortized cost:
– the business model aims to collect contract cash flow;
– contract cash flow is only the payment of principal and interest based on the amount of outstanding principal.
The company classifies the financial assets that meet the following conditions and are not designated to be measured at fair value and whose changes are included in the current profit and loss as financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income:
– the business model aims at both receiving the contract cash flow and selling the financial asset;
– contract cash flow is only the payment of principal and interest based on the amount of outstanding principal.
For non tradable equity instrument investments, the company can irrevocably designate them as financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive income at the time of initial recognition. The designation is made on the basis of individual investment, and the relevant investment conforms to the definition of equity instrument from the perspective of the issuer. Except for the above financial assets measured at amortized cost and at fair value with changes included in other comprehensive income, the company classifies all other financial assets as financial assets measured at fair value with changes included in current profit and loss. At the time of initial recognition, if the accounting mismatch can be eliminated or significantly reduced, the company can irrevocably designate the financial assets that should be classified as measured at amortized cost or measured at fair value and whose changes are included in other comprehensive income as financial assets measured at fair value and whose changes are included in current profits and losses.
At initial recognition, financial liabilities are classified as: financial liabilities measured at fair value with changes included in current profits and losses and financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at fair value and whose changes are included in current profits and losses at the initial measurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategy specified in the formal written documents, manage and evaluate the performance of the financial liability portfolio or the financial asset and financial liability portfolio on the basis of fair value, and report to the key management personnel within the enterprise on this basis.
3) The financial liabilities include embedded derivatives that need to be separated separately.
According to the above conditions, the financial liabilities designated by the company mainly include: (describe the designated situation in detail) the accounting policies before January 1, 2019
At initial recognition, financial assets and financial liabilities are classified as: financial assets or financial liabilities measured at fair value and whose changes are included in current profits and losses, including trading financial assets or financial liabilities and directly designated as
Financial assets or financial liabilities measured at fair value and whose changes are included in current profits and losses; Held to maturity investment; Receivables; Available for sale financial assets; Other financial liabilities, etc.
2. Recognition basis and measurement method of financial instruments
Accounting policies from January 1, 2019
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost, including notes receivable, accounts receivable, other receivables, long-term receivables, debt investment, etc., are initially measured at fair value, and relevant transaction costs are included in the initially recognized amount; The accounts receivable that do not contain major financing components and the accounts receivable that the company decides not to consider the financing components of no more than one year shall be initially measured at the contract transaction price.
The interest calculated by the effective interest method during the holding period shall be included in the current profits and losses.
Upon recovery or disposal, the difference between the price obtained and the book value of the financial asset shall be included in the current profits and losses. (2) Financial assets (debt instruments) measured at fair value with changes included in other comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, including accounts receivable financing and other debt investments, are initially measured at fair value, and relevant transaction costs are included in the initially recognized amount. The financial assets are subsequently measured at fair value. Changes in fair value are included in other comprehensive income except for interest, impairment loss or gain and exchange gain and loss calculated by effective interest method. At the time of derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in the current profit and loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in other comprehensive income
Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive income, including investments in other equity instruments, are initially measured at fair value, and relevant transaction expenses are included in the initially recognized amount. The financial assets are subsequently measured at fair value, and the changes in fair value are included in other comprehensive income. Dividends obtained shall be included in current profits and losses.
At the time of derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings.
(4) Measured at fair value
