of \( \sim \, 1 0 ^ { 8 - 9 } M _ { \odot } \) do host stars. These halos can be observed as ultrafaint galaxies. These systems are currently the most DM-dominated systems with a ratio of DM to stellar mass significantly exceeding a factor of a hundred. DM halos below this threshold are expected to be depleted of stars and are effectively invisible. Halos at and below the galaxy formation threshold offer a pristine environment in which baryonic physics is subdominant to the dark matter behavior, and hence are substantially less affected by baryonic systematics.

# 5.2 Observational Probes

In the following we list some of the promising current and future probes that can probe the abundance and inner composition of halos in the mass range of \( 1 0 ^ { 6 - 9 } M _ { \odot } \).

# 5.2.1 Ultra-faint galaxies

Ultra-faint dwarf (UFD) galaxies, defined as dark matter-dominated stellar systems with luminosity \( L < 1 0 ^ { 5 } \)\( ; L _ { \odot } \) [435], occupy the smallest dark matter halos that form galaxies, with \( 1 0 ^ { 8 } ~ M _ { \odot } \lesssim M _ { \mathrm { h a l o } } \lesssim 1 0 ^ { 1 0 } ~ M _ { \odot } \)[436, 437]. These systems therefore provide crucial information about the astrophysical processes that govern the faint end of galaxy formation and the dark matter physics that impacts the abundance and properties of halos near the galaxy formation threshold.

To date, ultra-faints have exclusively been detected within distances of ∼ 300 kpc as satellites of the Milky Way. Deep photometric surveys including the Dark Energy Survey have significantly increased the number of known Milky Way satellites in recent years, which now exceeds ∼ 60 systems [438]. Nevertheless, both empirical and theoretical arguments suggest that our census of ultra-faints—even within the Milky Way’s virial radius—is highly incomplete [439–441]. Forthcoming observational facilities including the Vera C. Rubin Ob-servatory and the Nancy Grace Roman Space Telescope are expected to drastically improve upon current ultra-faint detection capabilities. Specifically, Rubin is forecasted to discover the entire population of UFD Milky Way satellites in the Southern hemisphere outside the Galactic disk and with surface brightness down to \( \sim 3 2 \mathrm { m a g ~ a r c s e c } ^ { - 2 } \)[157, 314]. Excitingly, these detections are expected to extend well beyond distances of 300 kpc, allowing UFD populations to be characterized throughout much of the Local Volume [442].

Our understanding of the dark matter halos that host ultra-faints has significantly im-proved over the last decade. In particular, hydrodynamical simulations have started to re-solve the formation and evolution of UFDs in a cosmological context, including as satellites of larger hosts [443–448]. In parallel, semi-analytic and empirical galaxy–halo connection models have been combined with observations to infer ultra-faints’ halo properties; in these models, the number of observable ultra-faints suggests that these systems occupy halos with masses down to \( \sim 1 0 ^ { 8 } \)\( : M _ { \odot } \) (near the “atomic cooling limit”; [436, 437, 449, 450]) or even lower [451, 452]. The fraction of low-mass halos that host UFDs and the scatter in the stellar mass–halo mass relation for these systems are also being studied in order to precisely characterize the properties of halos near the galaxy formation threshold [453–456].

Ultra-faints provide stringent constraints on dark matter particle properties. Specifically, the number of observable UFD Milky Way satellites informs dark matter physics that sup-presses the present-day abundance of dark matter halos with masses of \( \sim 1 0 ^ { 8 } ~ M _ { \odot } \), yielding


lower limits on the mass of thermal relic warm dark matter of ∼ 5 keV [449, 457–466] and on the mass of ultra-light dark matter of \( \sim \, 1 0 ^ { - 2 1 } \) eV [464, 467]. Similar analyses con-strain the strength of dark matter–Standard Model interactions at the \( \sim ~ 1 0 ^ { - 3 0 } \mathrm { { c m } ^ { 2 } } \) level[29, 154, 155, 464] and the dark matter particle lifetime at the ∼ 10 Gyr level [468, 469].Furthermore, stellar velocity dispersion measurements for brighter dwarf galaxies inform the strength and velocity-dependence of dark matter self-interactions, with sensitivity to cross sections of \( \sim 1 \mathrm { c m ^ { 2 } } \) \( \mathrm { g } ^ { - 1 } \)[470, 471], and combining measurements of UFD internal dynamics from upcoming spectroscopic facilities and giant segmented mirror telescopes [472] with their population statistics will further inform self-interacting dark matter models [473–475].

The forthcoming observations discussed above are expected to increase the sample of known UFDs near the galaxy formation threshold, reducing statistical uncertainties and improving the corresponding dark matter constraints. For example, Rubin observations are forecasted to probe halo masses below \( \sim 1 0 ^ { 8 } \; M _ { \odot } \) [157]. If these halos are occupied by ultra-faints, these observations will provide evidence for the existence of galaxies formed through molecular hydrogen cooling; otherwise, they will determine the halo mass threshold and stochasticity associated with galaxy formation. Thus, combining these measurements with purely gravitational probes of small-scale structure will enable the detection of completely dark halos.

# 5.2.2 Lyman-alpha forest

The intergalactic medium (IGM) is the rarefied gas that fills the vast volumes between the galaxies in the Universe. Physical effects, ranging from the nature of dark matter to the radiation from star-forming galaxies and quasars, set the observable properties of the IGM, making the IGM a powerful probe of both fundamental physics and astrophysics. Baryons in the IGM trace dark matter fluctuations on Mpc scales, while on smaller (\( \lesssim \) 100 kpc scales) the \( T \sim 1 0 ^ { 4 } \mathrm { K } \) gas is pressure supported against gravitational collapse. While the IGM is sensitive to the Epoch of Reionization [476–478], complex and poorly understood physical processes related to galaxy formation play only a minor role in determining its structure[479, 480].

Forward modeling the structure of the IGM for a given cosmological and DM scenario is a theoretically well-posed problem, albeit requiring expensive cosmological hydro-dynamical simulations. Despite this apparent simplicity, accurate simulations of the IGM are com-putationally challenging because of the multi-scale nature of the problem [481]. A spatial resolution of \( \approx \) 20 kpc is required to resolve the density structure of the IGM, while a rela-tively large box size is required to capture the large-scale power, to obtain a fair sample of the Universe, and to model the topology of reionization.

These characteristics of the Lyman-\( \alpha \) flux power spectrum have allowed for some of the tightest constraints on the nature of dark matter clustering [482–487]. Current anal-yses have been shown to be sensitive to the scale of either a suppression [488, 489] or an enhancement[490, 491] of the small scale power. These dark matter constraints come from high-quality observations of a the few currently available (∼ 100) high redshift (\( z > \) 4) quasar spectra obtained with high resolution instruments (\( R \sim \) 80, 000) and high signal-to-noise observations (\( S / N \sim \) 100). With these spectra, surveys are able to measure scales to wavenumbers of \( k \sim \) 20 h/Mpc [478, 492]. Notably these surveys are currently limited by


. Based on our insights into the prospects of the apparel and textile industry, we entered into the textile industry in the 1980s. According to Frost & Sullivan, there has been an increasing trend in the popularity of stretchable denim garments and hence, stretchable denim fabric has a relatively higher profit margin. We believe that we are well-positioned and have the competitive strength to further our business in the stretchable denim fabric market.

. In view of the anticipated industry growth, our expanding clientele, increasing demand for our stretchable denim fabrics and rising quality standards of customers, we plan to procure slasher dyeing, weaving, finishing (desizing and shrinking), ozone bleaching and washing machines in order to increase our production capacity and enhance our product development capability. Please see ‘‘Production — Our machinery purchase plan’’ in this section for further details. Our Directors believe that the above machinery will further our capability in developing and producing denim fabrics of even greater aesthetics and functionality which drives our business by obtaining more orders from existing customers and attracting new apparel brands to procure denim fabrics in the future.

We believe the foregoing anticipated industry growth and our continuous efforts in business development, in particular clientele expansion, will sustain our business growth on one hand and reduce the proportion of revenue from certain apparel brands to our revenue on the other hand.

# Business relationship among our Group, apparel brands and garment manufacturers

The following diagram illustrates the typical business relationship among our Group, apparel brands and garment manufacturers:

# Principal contractual terms and credit terms

During the Track Record Period, we generally entered into individual sales orders and did not enter into long-term contracts with our garment manufacturer customers.

The terms typically included in these sales orders are product specifications, unit price, volume, delivery schedule and payment terms which are agreed between our Group and apparel brands. Garment manufacturers must procure denim fabrics from designated suppliers and in accordance with purchase


terms as instructed by the apparel brands. Payments are usually made by cash or letters of credit. We granted credit periods of up to 60 days to customers who have long business relationship with us and good payment record.

# Delivery arrangement

The finished products are generally delivered to garment manufacturers on the basis of FOB. However, we sometimes deliver on the basis of CIF or CNF to certain overseas garment manufacturers.

We generally engage third party logistic service providers for the delivery of our denim fabrics to our customers in both overseas and PRC sales. For FY2015, FY2016 and FY2017, our delivery and export related expenses amounted to HK\$4.4 million, HK\$6.0 million and HK\$7.6 million, respectively.

During the Track Record Period and up to the Latest Practicable Date, we did not experience any material disruption to our delivery arrangements and we did not suffer any material loss or pay any compensation as a result of delays in deliveries to our customers.

# Product return and warranty

We carry out internal quality control assessments to ensure that the finished products comply with the specifications or quality standards of the apparel brands. Apparel brands may also designate their quality control examiners to assess the quality of our finished products. If the results of either one of the assessments fail to meet the pre-determined specifications or quality standards, we may arrange replacement for the returned products on a case-by-case basis.

Our Directors confirm that during the Track Record Period and up to the Latest Practicable Date, our Group (i) did not receive any material complaints or claims from our customers in relation to the quality of our denim fabrics; and (ii) did not have any material sales return or product recall.

# QUALITY CONTROL

We place great emphasis on quality standards and are committed to manufacturing excellent quality denim fabrics. As at the Latest Practicable Date, there were 58 employees in our quality control team, of which two were based in Hong Kong and 56 were based in the PRC.

We have implemented and put in place the following internal quality control guidelines and measures throughout our production process from use of qualified suppliers, subcontracting to packaging:

# Use of qualified suppliers

Our suppliers are selected based on, among other things, price and payment terms, product and service quality, operation scale, and geographical proximity to our production facilities.

A qualified supplier list for our principal raw materials approved by our executive Directors is maintained by our procurement team and all principal raw materials must be purchased from our qualified suppliers. We closely monitor the performance of our suppliers from time to time. Besides, we


announcements by us or our competitors of significant acquisitions or dispositions; the lack of securities analysts covering our common stock; changes in earnings estimates by securities analysts or our ability to meet those estimates; the operating and stock price performance of comparable companies; overall market fluctuations; and general economic conditions. Stock markets in general have experienced volatility that has often been unrelated to the operating performance of a particular company. These broad market fluctuations may adversely affect the trading price of our common stock.

# Your percentage ownership in Wyndham Worldwide may be diluted in the future.

Your percentage ownership in Wyndham Worldwide may be diluted in the future because of equity awards that we have and expect will be granted over time to our Directors and employees. In addition, our Board may issue shares of our common and preferred stock and debt securities convertible into shares of our common and preferred stock up to certain regulatory thresholds without shareholder approval.

# Provisions in our certificate of incorporation and by-laws and under Delaware law may prevent or delay an acquisition of Wyndham Worldwide which could impact the trading price of our common stock.

Our certificate of incorporation and by-laws and Delaware law contain provisions that are intended to deter coercive takeover practices and inadequate takeover bids by making such practices or bids unacceptably expensive and to encourage prospective acquirers to negotiate with our Board rather than to attempt a hostile takeover. These provisions include that stockholders do not have the right to act by written consent, rules regarding how stockholders may present proposals or nominate directors for election at stockholder meetings, the right of our Board to issue preferred stock without stockholder approval and limitations on the right of stockholders to remove directors. Delaware law also imposes restrictions on mergers and other business combinations between us and any holder of 15% or more of our outstanding common stock.

# We cannot provide assurance that we will continue to pay dividends or purchase shares of our common stock under our stock repurchase program.

There can be no assurance that we will have sufficient cash or surplus under Delaware law to be able to continue to pay dividends or purchase shares of our common stock under our stock repurchase program. This may result from extraordinary cash expenses, actual expenses exceeding contemplated costs, funding of capital expenditures, increases in reserves or lack of available capital. Our Board may also suspend the payment of dividends or our stock repurchase program if the Board deems such action to be in the best interests of our stockholders. If we do not pay dividends, the price of our common stock must appreciate for you to realize a gain on your investment in Wyndham Worldwide. This appreciation may not occur and our stock may in fact depreciate in value.

# We are responsible for certain of Cendant’s contingent and other corporate liabilities.

Under the separation agreement and the tax sharing agreement that we executed with Cendant (now Avis Budget Group) and former Cendant units, Realogy and Travelport, we and Realogy generally are responsible for 37.5% and 62.5%, respectively, of certain of Cendant’s contingent and other corporate liabilities and associated costs including certain contingent and other corporate liabilities of Cendant or its subsidiaries to the extent incurred on or prior to August 23, 2006. These liabilities include those relating to certain of Cendant’s terminated or divested businesses, the Travelport sale, certain Cendant-related litigation, actions with respect to the separation plan and payments under certain contracts that were not allocated to any specific party in connection with the separation.

If any party responsible for the liabilities described above were to default on its obligations, each non-defaulting party including Avis Budget would be required to pay an equal portion of the amounts in default. Accordingly, we could under certain circumstances be obligated to pay amounts in excess of our share of the assumed obligations related to such liabilities including associated costs. In accordance with the terms of the separation agreement, Realogy posted a letter of credit in April 2007 for our and Cendant’s benefit to cover its estimated share of the assumed liabilities discussed above although there can be no assurance that such letter of credit will be sufficient to cover Realogy’s actual obligations if they arise.

# We may be required to write-off all or a portion of the remaining value of our goodwill or other intangibles of companies we have acquired.

Under generally accepted accounting principles we review our intangible assets, including goodwill, for impairment at least annually or when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our goodwill or other intangible assets may not be recoverable include a sustained decline in our stock price and market capitalization, reduced future cash flow estimates and slower


growth rates in our industry. We may be required to record a significant non-cash impairment charge in our financial statements during the period in which any impairment of our goodwill or other intangible assets is determined, negatively impacting our results of operations and stockholders’ equity.

# ITEM 1B. UNRESOLVED STAFF COMMENTS

# None.

# ITEM 2. PROPERTIES

Our corporate headquarters is located in a leased office at 22 Sylvan Way in Parsippany, New Jersey, which lease expires in 2029. We also have a leased office in Virginia Beach, Virginia for our Associate Service Center, which lease expires in 2019.

# Wyndham Hotel Group

The main corporate operations of our hotel group business share office space in our corporate headquarters leased in Parsippany, New Jersey. Our hotel group business also leases space for its reservations centers and/or data warehouses in Phoenix, Arizona and Saint John, New Brunswick, Canada pursuant to leases that expire in 2020. In addition, our hotel group business has nine leases for office space in various countries outside the U.S. with varying expiration dates ranging between 2017 and 2021. Our hotel group business also has three leases for office space within the U.S. with varying expiration dates ranging between 2018 and 2020. All leases that are due to expire in 2017 are presently under review related to our ongoing requirements.

# Wyndham Destination Network

Wyndham Destination Network has its main corporate operations in a leased office in Parsippany, New Jersey, which lease expires in 2029. Wyndham Destination Network also owns 30 properties, of which 20 are located in the U.S., five are located in Denmark, four are located in the U.K. and one is located in Mexico. Wyndham Destination Network has 175 leased offices that expire between 2017 through 2035, of which 83 are located in North America, 81 are located in Europe, eight are located in Latin America and three are located in Asia Pacific. All leases that are due to expire in 2017 are presently under review related to our ongoing requirements.

# Wyndham Vacation Ownership

Our vacation ownership business has its main corporate operations in Orlando, Florida pursuant to several leases, which begin to expire in 2025. Our vacation ownership business also has leased spaces in Redmond, Washington; Springfield, Missouri; Chicago, Illinois; Las Vegas, Nevada; and Bundall, Australia with various expiration dates. Our vacation ownership business leases space for administrative functions in Las Vegas, Nevada that expires in 2028 and in Northbrook, Illinois that expires in 2017. In addition, the vacation ownership business leases approximately 113 marketing and sales offices, of which approximately 96 are located throughout the U.S., nine are located in Australia, four are located in the Caribbean, three are located in Mexico, and one is located in Canada with varying expiration dates. All leases that are due to expire in 2017 are presently under review related to our ongoing requirements.

# ITEM 3. LEGAL PROCEEDINGS

We are involved in various claims and lawsuits arising in the ordinary course of business, none of which, in the opinion of management, is expected to have a material adverse effect on our results of operations or financial condition. See Note 17 to the Consolidated Financial Statements for a description of claims and legal actions arising in the ordinary course of our business and Note 23 to the Consolidated Financial Statements for a description of our obligations regarding Cendant contingent litigation.

# ITEM 4. MINE SAFETY DISCLOSURES

None.


（二）所有者投入和减少资
本	3,213,639.00			145,796,621.76	143,181,094.97							292,191,355.73

1．所有者投入的普通股	3,213,639.00				122,901,171.44							126,114,810.44

2．其他权益工具持有者投
入资本				145,796,621.76								145,796,621.76

3．股份支付计入所有者权
益的金额					20,279,923.53							20,279,923.53

4．其他

（三）利润分配									11,678,201.07	-42,197,428.71		-30,519,227.64

1．提取盈余公积									11,678,201.07	-11,678,201.07

2．对所有者（或股东）的
分配										-30,519,227.64		-30,519,227.64

3．其他

（四）所有者权益内部结转

1．资本公积转增资本（或
股本）

2．盈余公积转增资本（或
股本）

3．盈余公积弥补亏损

4．设定受益计划变动额结
转留存收益

5．其他综合收益结转留存
收益

6．其他

（五）专项储备


1．本期提取

2．本期使用

（六）其他					13,348,406.98							13,348,406.98

四、本期期末余额	227,621,934.00			145,796,621.76	615,843,780.19				59,279,645.41	470,758,861.83		1,519,300,843.19

上期金额

单位：元

项目	2020 年年度

股本	其他权益工具	资本公积	减：库存
股	其他综
合收益	专项储备	盈余公积	未分配利润	其他	所有者权益合计

优先
股	永续
债	其他

一、上年期末余额	218,760,000.00				206,550,566.75				31,240,578.21	262,051,719.52		718,602,864.48

 加：会计政策变更									76,259.66	686,336.95		762,596.61

    前期差错更正

    其他

二、本年期初余额	218,760,000.00				206,550,566.75				31,316,837.87	262,738,056.47		719,365,461.09

三、本期增减变动金额（减少以
“－”号填列）	5,648,295.00				252,763,711.49				16,284,606.47	133,436,223.42		408,132,836.38

（一）综合收益总额										162,846,064.72		162,846,064.72

（二）所有者投入和减少资本	5,648,295.00				252,763,711.49							258,412,006.49

1．所有者投入的普通股	5,648,295.00				217,049,845.68							222,698,140.68

2．其他权益工具持有者投入资本

3．股份支付计入所有者权益的金
额					35,713,865.81							35,713,865.81

4．其他


# Glossary

“2021 AGM”	the forthcoming annual general meeting of the Company to be held on
Tuesday, 24 August 2021 at 11:30 a.m. at 24/F, Admiralty Centre I, 18 Harcourt
Road, Hong Kong.

“ARR”	average room rate.

“Articles”	Articles of Association of the Company, as amended from time to time.

“Associate”	has the meaning ascribed to it under the Listing Rules.

“AUD”  or“A$”	Australian Dollars, the lawful currency of Australia.

“BC Group” or “BCG”	BC Investment Group Holdings Limited (formerly known as BC Group Holdings
Limited), a company incorporated in the Cayman Islands and which is the
holding company of BC Securities following the reorganisation referred to the
announcement of the Company dated 21 February 2019.

“BC Securities”	BC Securities Pty Ltd, BC Finance Services Pty Ltd, BC Investment Group Pty
Ltd, BC Investment Group (HK) Limited, BC Securities (HK) Limited and their
respective subsidiaries, whose principal business is the provision of regulated
first mortgage finance to international buyers of residential properties.

“BCG Business”	international mortgage finance ldpatform uner the brand of BCG.

“Board”	the board of Directors.

“BVI”	the British Virilgn Isands.

“CAGR”	compound annual growth rate.

“Care Park”	Care Park Group Pty. Ltd., a company incorporated in Australia with limited
liability, an indirect non wholly-owned Subsidiary.

“CBD”	central business district.

“CG Code”	Corporate Governance Code contained in Appendix 14 to the Listing Rules.

“Companies Law”	Companies Law, Cap 22 (Law 3 of 1961, as consolidated and revised) of the
Cayman Islands.

“Company” or “FEC” or “FECIL”	Far East Consortium International Limited, a company incorporated in the
Cayman Islands with limited liability, the shares of which are listed on the Main
Board of the Stock Exchange (stock code: 35).

“Controlling Shareholder”	has the meaning ascribed to it under the Listing Rules.

“CTF”	Chow Tai Fook Group.

“Czech”	the Czech Republic.

“CZK”	Czech Koruna, the lawful currency of Czech.

“Director(s)”	the director(s) of the Company.

“Dorsett”	Dorsett HosiiptaltIy nternational Limited (formerly know as Kosmopolito Hotels
International Limited), a company incorporated in the Cayman Islands and a
listed subsidiary of the Company until it was privatized (previous stock code:
2266) and became an indirect wholly-owned Subsidiary in October 2015.

“Dorsett Group”	Dorsett and its subsidiaries.

“Dorsett Share Option Scheme”	the share option scheme of Dorsett adopted on 10 September 2010.


“EBITDA”	earnings before interest, taxes, depreciation, and amortisation.

“ESG”	Environmental, Social and Governance.

“EUR”	Euro, the lawful currency of the eurozone.

“FECIL Share Option Schemes”	the share option schemes of the Company adopted pursuant to the resolutions
passed by the Shareholders on 28 August 2002 and 31 August 2012.

“FEV”	Far East Vault.

“FY”	financial year ended/ending 31 March.

“F&B”	food and beverage.

“GBP”  or“£”	pounds sterling, the lawful currency of the United Kindgom.

“GDV”	gross development value.

“GFA”	gross floor area.

“Group”	the Company and its Subsidiaries.

“HK$”	Hong Kong Dollars, the lawful currency of Hong Kong.

“HKICPA”	the Hong Kong Institute of Certified Public Accountants.

“HKIRA”	the Hong Kong Investor Relations Association.

“Hong Kong” or “HK” or “HKSAR”	the Hong Kong Special Administrative Reifgon o the PRC.

“LC”	local currency.

“Listing Rules”	the Rules Governing the Listing of Securities on the Stock Exchange.

“Mayland”	Malaysia Land Properties Sdn. Bhd..

“MCC”	Manchester City Council.

“Model Code”	Model Code for Securities Transactions by Directors of Listed Issuers set out
in Appendix 10 of the Listing Rules.

“MOU”	Memorandum of understanding.

“MYR”	Malaysian Rinihggt, te lawful currencMy of alaysia.

“Notes”	the notes issued under the US$1,000,000,000 medium term note programme
of FEC Finance Limited unconditionally and irrevocably guaranteed by the
Company.

“OCC”	overall occupancy rate.

“Perpetual Capital Notes”	the senior perpetual cailpta notes issued under the US$1,000,000,000 medium
term note programme of FEC Finance Limited unconditionally and irrevocably
guaranteed by the Company.

“PRC” or “Mainland China” or
“China”	other reihPgons in te eolpe’s Rebpulic of China, and for the purpose of this
annual report and unless otherwise stated, references in this annual report to
the PRC, Mainland China or China do not include Taiwan, Hong Kong or Macau
Special Administrative Reion of the PRCg.


项目	2021 年度

股本	其他权益工具	资本公积	减：库存股	其他综合收
益	专项储
备	盈余公积	未分配利润	其
他	所有者权益合计

优先
股	永续
债	其
他

    其他	-	-	-	-	-	-	-	-	-	-	-	-

二、本年期初余额	410,314,245.00	-	-	-	742,826,485.55	-	-	-	8,368,315.66	12,087,132.39	-	1,173,596,178.60

三、本期增减变动金额（减少以“－”号填
列）	101,960,000.00	-	-	-	206,896,270.66	-	-	-	8,470,121.85	76,231,096.68	-	393,557,489.19

（一）综合收益总额	-	-	-	-	-	-	-	-	-	84,701,218.53	-	84,701,218.53

（二）所有者投入和减少资本	101,960,000.00	-	-	-	206,896,270.66	-	-	-	-	-	-	308,856,270.66

1．所有者投入的普通股	101,960,000.00	-	-	-	206,896,270.66	-	-	-	-	-	-	308,856,270.66

2．其他权益工具持有者投入资本	-	-	-	-	-	-	-	-	-	-	-	-

3．股份支付计入所有者权益的金额	-	-	-	-	-	-	-	-	-	-	-	-

4．其他	-	-	-	-	-	-	-	-	-	-	-	-

（三）利润分配	-	-	-	-	-	-	-	-	8,470,121.85	-8,470,121.85	-	-

1．提取盈余公积	-	-	-	-	-	-	-	-	8,470,121.85	-8,470,121.85	-	-

2．对所有者（或股东）的分配	-	-	-	-	-	-	-	-	-	-	-	-

3．其他	-	-	-	-	-	-	-	-	-	-	-	-

（四）所有者权益内部结转	-	-	-	-	-	-	-	-	-	-	-	-

1．资本公积转增资本（或股本）	-	-	-	-	-	-	-	-	-	-	-	-

2．盈余公积转增资本（或股本）	-	-	-	-	-	-	-	-	-	-	-	-

3．盈余公积弥补亏损	-	-	-	-	-	-	-	-	-	-	-	-

4．设定受益计划变动额结转留存收益	-	-	-	-	-	-	-	-	-	-	-	-

5．其他综合收益结转留存收益	-	-	-	-	-	-	-	-	-	-	-	-


项目	2021 年度

股本	其他权益工具	资本公积	减：库存股	其他综合收
益	专项储
备	盈余公积	未分配利润	其
他	所有者权益合计

优先
股	永续
债	其
他

6．其他	-	-	-	-	-	-	-	-	-	-	-	-

（五）专项储备	-	-	-	-	-	-	-	-	-	-	-	-

1．本期提取	-	-	-	-	-	-	-	-	-	-	-	-

2．本期使用	-	-	-	-	-	-	-	-	-	-	-	-

（六）其他	-	-	-	-	-	-	-	-	-	-	-	-

四、本期期末余额	512,274,245.00	-	-	-	949,722,756.21	-	-	-	16,838,437.51	88,318,229.07	-	1,567,153,667.79

上期金额

单位：元

项目	2020 年年度

股本	其他权益工具	资本公积	减：库存股	其他综合收
益	专项储
备	盈余公积	未分配利润	其
他	所有者权益合计

优先
股	永续
债	其
他

一、上年期末余额	410,314,245.00	-	-	-	742,826,485.55	-	-	-	7,577,479.32	4,969,605.35		1,165,687,815.22

 加：会计政策变更	-	-	-	-	-	-	-	-	-	-	-	-

    前期差错更正	-	-	-	-	-	-	-	-	-	-	-	-

    其他	-	-	-	-	-	-	-	-	-	-	-	-

二、本年期初余额	410,314,245.00	-	-	-	742,826,485.55	-	-	-	7,577,479.32	4,969,605.35	-	1,165,687,815.22

三、本期增减变动金额（减少以“－”号填列）	-	-	-	-	-	-	-	-	790,836.34	7,117,527.04	-	7,908,363.38

（一）综合收益总额	-	-	-	-	-	-	-	-	-	7,908,363.38	-	7,908,363.38

（二）所有者投入和减少资本	-	-	-	-	-	-	-	-	-	-	-	-


# (q) Quorum for meetings and separate class meetings

No business shall be transacted at any general meeting unless a quorum is present when the meeting proceeds to business, but the absence of a quorum shall not preclude the appointment of a chairman.

Save as otherwise provided by the Articles the quorum for a general meeting shall be two members present in person (or, in the case of a member being a corporation, by its duly authorised representative) or by proxy and entitled to vote. In respect of a separate class meeting (other than an adjourned meeting) convened to sanction the modification of class rights the necessary quorum shall be two persons holding or representing by proxy not less than one-third in nominal value of the issued shares of that class.

A corporation being a member shall be deemed for the purpose of the Articles to be present in person if represented by its duly authorised representative being the person appointed by resolution of the directors or other governing body of such corporation to act as its representative at the relevant general meeting of our Company or at any relevant general meeting of any class of members of our Company.

# (r) Rights of the minorities in relation to fraud or oppression

There are no provisions in the Articles relating to rights of minority shareholders in relation to fraud or oppression. However, certain remedies are available to shareholders of our Company under Cayman law, as summarised in paragraph 3(f) of this Appendix.

# (s) Procedures on liquidation

A resolution that our Company be wound up by the court or be wound up voluntarily shall be a special resolution.

Subject to any special rights, privileges or restrictions as to the distribution of available surplus assets on liquidation for the time being attached to any class or classes of shares (i) if our Company shall be wound up and the assets available for distribution amongst the members of our Company shall be more than sufficient to repay the whole of the capital paid up at the commencement of the winding up, the excess shall be distributed pari passu amongst such members in proportion to the amount paid up on the shares held by them respectively and (ii) if our Company shall be wound up and the assets available for distribution amongst the members as such shall be insufficient to repay the whole of the paid-up capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the members in proportion to the capital paid up, or which ought to have been paid up, at the commencement of the winding up on the shares held by them respectively.

If our Company shall be wound up (whether the liquidation is voluntary or by the court) the liquidator may, with the authority of a special resolution and any other sanction required by the Companies Law divide among the members in specie or kind the whole or any part of the assets of our Company whether the assets shall consist of property of one kind or shall consist of properties of


different kinds and the liquidator may, for such purpose, set such value as he deems fair upon any one or more class or classes of property to be divided as aforesaid and may determine how such division shall be carried out as between the members or different classes of members. The liquidator may, with the like authority, vest any part of the assets in trustees upon such trusts for the benefit of members as the liquidator, with the like authority, shall think fit, but so that no contributory shall be compelled to accept any shares or other property in respect of which there is a liability.

# (t) Untraceable members

Pursuant to the Articles, our Company may sell any of the shares of a member who is untraceable if (i) all cheques or warrants in respect of dividends of the shares in question (being not less than three in total number) for any sum payable in cash to the holder of such shares have remained uncashed for a period of 12 years; (ii) upon the expiry of the 12 year period, our Company has not during that time received any indication of the existence of the member; and (iii) our Company has caused an advertisement to be published in accordance with the rules of the Designated Stock Exchange (as defined in the Articles) giving notice of its intention to sell such shares and a period of three (3) months, or such shorter period as may be permitted by the Designated Stock Exchange (as defined in the Articles), has elapsed since the date of such advertisement and the Designated Stock Exchange (as defined in the Articles) has been notified of such intention. The net proceeds of any such sale shall belong to our Company and upon receipt by our Company of such net proceeds, it shall become indebted to the former member of our Company for an amount equal to such net proceeds.

# (u) Subscription rights reserve

The Articles provide that to the extent that it is not prohibited by and is in compliance with the Companies Law, if warrants to subscribe for shares have been issued by our Company and our Company does any act or engages in any transaction which would result in the subscription price of such warrants being reduced below the par value of a share, a subscription rights reserve shall be established and applied in paying up the difference between the subscription price and the par value of a share on any exercise of the warrants.

# 3. CAYMAN ISLANDS COMPANY LAW

Our Company is incorporated in the Cayman Islands subject to the Companies Law and, therefore, operates subject to Cayman law. Set out below is a summary of certain provisions of Cayman company law, although this does not purport to contain all applicable qualifications and exceptions or to be a complete review of all matters of Cayman company law and taxation, which may differ from equivalent provisions inj urisdictions with which interested parties may be more familiar:

# (a) Operations

As an exempted company, our Company’s operations must be conducted mainly outside the Cayman Islands. Our Company is required to file an annual return each year with the Registrar of Companies of the Cayman Islands and pay a fee which is based on the amount of its authorised share capital.


# 1.2. Statement of the main result. We are now prepared to state our main result.

Theorem 1.1. Let 3 \( < p < \) 5 and \( \begin{array} { r } { \frac { p - 1 } { p + 1 } < s < 1 } \end{array} \). For real-valued \( f = ( f _ { 1 } , f _ { 2 } ) \in H _ { x } ^ { s } ( \mathbb { R } ^ { 3 } ) \ \times \)\( H _ { x } ^ { s - 1 } ( \mathbb { R } ^ { 3 } ) \), let \( f ^ { \omega } = ( f _ { 1 } ^ { \omega } , f _ { 2 } ^ { \omega } ) \) be the randomized initial data defined in (1.1) and let \( u _ { f } ^ { \omega } \) be the free wave evolution (1.1) of \( f ^ { \omega } \). Then for almost every \( \omega \in { \Omega } \), there exists a unique global solution

\[ ( 8 ) \qquad \qquad \qquad \qquad ( u , \partial _ { t } u ) \in ( u _ { f } ^ { \omega } , \partial _ { t } u _ { f } ^ { \omega } ) + C \bigl ( \mathbb { R } ; H _ { x } ^ { 1 } ( \mathbb { R } ^ { 3 } ) \times L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) \bigr ) \]

to the nonlinear wave equation

\[ \begin{array} { r l } { ( 9 ) \qquad \qquad \qquad \qquad \qquad } & { { } \left\{ - \partial _ { t } ^ { 2 } u + \Delta u = | u | ^ { p - 1 } u ~ o n ~ \mathbb { R } \times \mathbb { R } ^ { 3 } , \right. } \\ { \left. ( u , \partial _ { t } u ) | _ { t = 0 } = ( f _ { 1 } ^ { \omega } , f _ { 2 } ^ { \omega } ) . \right. } \end{array} \]

Here, uniqueness holds in the sense that upon writing

\[ ( u , \partial _ { t } u ) = ( u _ { f } ^ { \omega } , \partial _ { t } u _ { f } ^ { \omega } ) + ( v , \partial _ { t } v ) , \]

there exists a unique global solution

\[ ( v , \partial _ { t } v ) \in C \big ( \mathbb { R } ; H _ { x } ^ { 1 } ( \mathbb { R } ^ { 3 } ) \big ) \cap L _ { t , l o c } ^ { \frac { 2 p } { p - 3 } } L _ { x } ^ { 2 p } \big ( \mathbb { R } \times \mathbb { R } ^ { 3 } \big ) \times C \big ( \mathbb { R } ; L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) \big ) \]

to the forced nonlinear wave equation

\[ \quad ( 1 0 ) \qquad \qquad \qquad \qquad \left\{ - \partial _ { t } ^ { 2 } v + \Delta v = | u _ { f } ^ { \omega } + v | ^ { p - 1 } ( u _ { f } ^ { \omega } + v ) ~ o n ~ \mathbb { R } \times \mathbb { R } ^ { 3 } , \right. \]

Remark 1.2. In contrast to the mild uniqueness of the authors’ previous work [25, The-orem 1.1], Theorem 1.1 yields the more standard notion of uniqueness for solutions to semilinear wave equations, compare with [25, Remark 4.3]. Moreover, the threshold for the allowable regularity in Theorem 1.1 has been significantly lowered as compared to that in[25, Theorem 1.1]. In particular, we prove the existence of global solutions for initial data at super-critical regularities for all 3 \( < p < \) 5, see Figure 1.1.

While the randomization (1.1) does not regularize at the level of Sobolev spaces, the free evolution of the randomized initial data (1.1) almost surely satisfies better space-time integrability properties. For this reason one can show that the nonlinear component of the solution lies in a better space, in this case \( H _ { x } ^ { 1 } ( \mathbb { R } ^ { 3 } ) \times L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) \), by constructing local solutions via a fixed point argument centered at the free evolution \( u _ { f } ^ { \omega } \). We will see that to conclude global existence, it suffices to control the growth of the \( H _ { x } ^ { 1 } ( \mathbb { R } ^ { 3 } ) \times L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) \) norm of the nonlinear component of the solution. The main novelty of this paper is the derivation of probabilistic growth estimates for the modified energy functional

\[ \quad ( 1 1 ) \qquad \qquad E ( v ) = \int _ { \mathbb { R } ^ { 3 } } { \frac { 1 } { 2 } } | \nabla _ { x } v | ^ { 2 } + { \frac { 1 } { 2 } } | \partial _ { t } v | ^ { 2 } + { \frac { 1 } { 2 } } | v | ^ { 2 } + { \frac { 1 } { p + 1 } } | u _ { f } ^ { \omega } + v | ^ { p + 1 } \, d x \]

for 3 \( < p < \) 5, where v is the nonlinear component of the solution to (1). Consequently, we will be able to conclude that almost surely, we have the necessary control to extend the local solutions that we construct to global ones.

We consider this modified energy functional for two reasons. The first is that the appear-ance of the free evolution of the randomized initial data in the potential term creates an


Figure 1.1. The dashed line is the critical regularity \( \textstyle s _ { c } = { \frac { 3 } { 2 } } - { \frac { 2 } { p - 1 } } \). The solid line is the threshold for the exponent s in Theorem 1.1. The dotted line is the threshold from the authors’ previous result in [25, Theorem 1.1].

important cancellation when computing the time derivative of the energy functional. Sec-ond, we need the appearance of the \( L _ { x } ^ { 2 } \) term in the energy in order to be able to estimate for 0 \( < \sigma < \) 1,

\[ \| | \nabla | ^ { \sigma } v | | _ { L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) } ^ { 2 } \lesssim \| v \| _ { L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) } ^ { 2 } + \| \nabla _ { x } v \| _ { L _ { x } ^ { 2 } ( \mathbb { R } ^ { 3 } ) } ^ { 2 } \lesssim E ( v ) . \]

Previously, energy methods for random data problems were used by Nahmod, Pavlovic´and Staffilani [26] in the context of the periodic Navier-Stokes equation in two and three dimensions and by Burq and Tzvetkov for the three-dimensional periodic defocusing cubic nonlinear wave equation [12]. Pocovnicu [29] and Oh and Pocovnicu [27] used probabilistic energy bounds in conjunction with a probabilistic perturbation theory for the energy critical nonlinear wave equation.

Remark 1.3. Our proof of the probabilistic energy estimates is inspired by the quintic case in [27], with some important differences. In [27], Oh and Pocovnicu only consider frequency truncated random initial data and show that almost surely the corresponding solutions satisfy energy bounds uniformly in the truncation parameter, which allows one to construct solutions using probabilistic perturbation theory. Instead, we study the Cauchy problem with super-critical random initial data directly. To do so we make use of the observation that although the term \( \partial _ { t } u _ { f } ^ { \omega } \in H _ { x } ^ { s - 1 } ( \mathbb { R } ^ { 3 } ) \) appears when taking the time derivative of our energy functional, this expression is always paired with a term at regularity \( H _ { x } ^ { 1 - s } ( \mathbb { R } ^ { 3 } ) \). We therefore have no problem achieving the necessary bounds to close our Gronwall argument, see the proof of Proposition 3.2 below for more details. Additionally, the presence of non-algebraic nonlinearities introduces some complications in our estimates. To overcome this difficulty, a more careful analysis using the fractional chain rule and interpolation in Sobolev spaces is necessary.

Remark 1.4. Our proof does not yield any improvement at \( p \) = 3. However, this case can be treated exactly as in the periodic case in [12] using the energy functional


since the date when the companies first came under the control of our Controlling Shareholders, whichever is the shorter period, in a manner similar to the principles of merger accounting under Hong Kong Accounting Guideline 5 “Merger Accounting for Common Control Combination” issued by the HKICPA.

Inter-company transactions, balances and unrealized gains/losses on transactions between group companies are eliminated on combination.

# CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of our consolidated financial information requires us to make significant estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and their accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these significant assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets and liabilities affected in the future. We have identified below the accounting policies that we believe are the most critical to our consolidated financial information and that involve the most significant estimates.

# Early adoption of IFRS 9

For the purpose of the preparation of our financial information for the years ended December 31, 2016, 2017 and 2018 and the six months ended June 30, 2019, we have adopted IFRS 9 “Financial Instruments” since January 1, 2016. The impacts on the financial information upon the adoption of IFRS 9 are considered material due to classification and measurement as explained in detail below:

Available-for-sale investment under IAS 39 were classified to financial assets at fair value through profit or loss and financial assets designated at fair value through other comprehensive income under IFRS 9. Accordingly, unquoted equity investments stated as cost less impairment loss under IAS 39 are stated with fair value under IFRS 9. The investments were measured at fair value through profit or loss at the end of each reporting period, with a corresponding gain on change in fair value of US\$17,948,000, US\$5,675,000, US\$742,000 and US\$5,988,000, respectively, credited to other income and gains in 2016, 2017, 2018 and the six months ended June 30, 2019, respectively. The equity investments were irrevocably designated at fair value through other comprehensive income at the end of each reporting period as our Group considers these investments to be strategic in nature. The fair value changes in these investments resulted in a loss (net of tax) amounting to US\$6,446,000 in 2016, a gain (net of tax) amounting to US\$4,759,000 and US\$4,287,000 in 2017 and 2018, and nil in the six months ended June 30, 2019, respectively, as recorded in other comprehensive income.

# Early adoption of IFRS 15

For the purpose of preparation of our financial information for the years ended December 31, 2016, 2017 and 2018 and the six months ended June 30, 2019, we have adopted IFRS 15 “Revenue from Contracts with Customers” since January 1, 2016. Except for changes in certain reporting items caused by reclassification, there is no material impact on our financial information due to the adoption of IFRS 15.

# Early adoption of IFRS 16

IFRS 16 supersedes IAS 17 “Leases”, IFRIC 4 “Determining Whether an Arrangement Contains a Lease”, SIC-15 “Operating Leases-Incentives” and SIC-27 “Evaluating the Substance of


Transactions Involving the Legal Form of a Lease”. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for most leases under a single on-balance sheet model.

Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact on leases where our Group is the lessor.

We adopted IFRS 16 using the full retrospective method since the beginning of the Track Record Period. We elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. We also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option, and lease contracts for which the underlying asset is of low value. Based on the historical financial information, our management believes that the adoption of IFRS 16 has a significant impact on the absolute amount of the total assets and total liabilities, but does not have a significant impact on our financial position and performance compared to those prepared under IAS 17.

# Revenue recognition

# Revenue from contracts with customers

Revenue from contracts with customers is recognized when control of goods or services is transferred to the customers at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services.

When the consideration in a contract includes a variable amount, the amount of consideration is estimated to which we will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

When the contract contains a financing component which provides the customer a significant benefit of financing the transfer of goods or services to the customer for more than one year, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would be reflected in a separate financing transaction between us and the customer at contract inception. When the contract contains a financing component which provides us a significant financial benefit for more than one year, revenue recognized under the contract includes the interest expense accreted on the contract liability under the effective interest method. For a contract where the period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price is not adjusted for the effects of a significant financing component, using the practical expedient in IFRS 15.

Revenue from the sale of products is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the products.

Some contracts for the sale of products provide customers with rights of return and sales rebate. We provide extended warranties which are accounted for as service-type warranties. The rights of return, sales rebates give rise to variable consideration. Consideration payable to a customer also


realized paperless process of electronic bidding, reducing paper documents and supporting green environmental protection. The Bank conscientiously implemented the low toxicity, less pollution, energy conservation and emission reduction strategy. In purchasing office furniture and other supplies across the Bank, it included such indicators as environmental protection and energy conservation in the evaluation system, supporting green industries with actions.

The Bank strengthened development driven by science and technology. The social, digital procurement platform Longjicai integrates enterprise procurement, electronic bidding and e-commerce procurement, and introduces advanced technologies such as AI, big data and cloud computing to effectively control procurement risk. It uses the knowledge graph analysis technique to precisely describe the association of suppliers, and effectively identifies suppliers’ bid rigging with the help of automatic comparison technique. By effectively combining purchase regulations and procedures and technological means, it forms a fair and impartial procurement platform and empowers the society.

During the pandemic, the Bank promoted online procurement and adopted remote negotiation (bidding) and review. In particular, when signing a procurement contract with a small or medium-sized enterprise, the Bank strictly implemented the requirements on payment term, payment conditions, proportion of security deposit, overdue interest, etc. as specified in the Payment Regulations for Small and Medium-sized Enterprises, to truly protect SMEs’ legitimate rights and interests.

# Serial B6: Product responsibility

CCB carries out national policies on protection of intellectual property (IP) rights and pays attention to IP creation, application, protection and management. According to CCB’s rules and regulations on IP management, the Bank applies for IP rights, including patents, trademarks, etc. in time to protect the legitimate rights and interests derived from various innovations of the Bank. It is also committed to fully respecting the IP rights of others and preventing risks of IP infringement. No major IP infringement incident occurred during the year.

The Bank has formulated and issued the Measures for Data Risk Management of China Construction Bank (Version 2020), Management Rules on Security of Production Data Application of China Construction Bank (Version 2020), Management Measures on Personal Customers ’ Information of China Construction Bank (Version 2019), etc. to fully safeguard personal information security of customers.

# Protection of Consumers’ Rights and Interests

# 1. Strengthening top-level design

The Bank fully implemented the requirements of the Measures of the People’s Bank of China for the Protection of Financial Consumer Rights and the Guidelines on Strengthening the Development of Consumer Rights and Interests Protection System and Mechanism in Banking and Insurance Institutions issued by the CBIRC. It formulated the work plan for protection of consumers’ rights and interests. In line with the principles of unified planning and step-by-step implementation, the Bank improved the level of refined and intelligent management of the protection work of consumers’ rights and interests across the board, by strengthening basic management, enhancing compliant management, standardizing consumer protection review, planning publicity and education as a whole, etc. The Bank carried out the digital construction


project for the protection work of consumers’ rights and interests, further advanced systematic, standard management of consumer protection work, continued to improve the technological support for consumer protection work, and made contributions to practices of New Finance.

# 2. Improving rules and polices

The Bank formulated the Management Measures for Consumer Protection Work of China Construction Bank, and helped realize scientific and standard management of the Group’s consumer protection work. The Bank developed the Management Measures for Consumer Protection Review of China Construction Bank, and established the consumer protection review system, which has further defined the subject, scope, process, etc. of consumer protection review, to ensure the products and services provided to consumers are subject to consumer protection review before appearing on the market, and identify and warn about risks to protect consumers’ eight rights and interests. The Bank strove to do well in prevention, so as to better protect consumers’ legitimate rights and interests from the source.

# 3. Implementing management in key fields

The Bank strictly implemented the regulators’ requirements of recording and filming sale of wealth management products. At the end of November 2017, the Bank already realized integrated management of “recording and filming” systems in 37 branches across the country and embedded “recording and filming” in business transaction processes, to safeguard consumers’ financial transaction security.

The Bank strengthened consumer protection review compliance management. First, the Bank included consumer protection review into the internal control evaluation system, attached equal importance to online and offline channels, and started risk control procedures earlier than before. Second, the Bank stressed review of the Bank’s performance of responsibilities, and enhanced suitability management in the selling process, to provide suitable products and services to suitable customers. The Bank strengthened employee behavior management, requiring employees not to exaggerate return, give false advertising or bundle any product in sales but to fully disclose product and service risks and strictly fulfill sellers’ duties. Third, the Bank strengthened consumer protection supervision and evaluation of intermediaries and third party institutions, included consumer protection requirements into the access and delisting criteria of intermediaries and third party institutions, and specified such requirements in the cooperation agreements, to prevent transmission of external risks to the Bank.

# 4. Deepening special training

The Bank strengthened deep integration of consumer protection concepts and business, organized training of consumer protection specialists, and enhanced the initiative of business departments to support and participate in consumer protection work. It reasonably designed products and services from the perspective of consumer protection, and embedded consumer protection concepts and requirements in the whole business management process from ex ante management to in-process management to ex post management. The Bank further intensified training of the entire staff on consumer protection work. On the basis of continuing to conducting bank-wide training on consumer protection, it urged branches to include consumer protection into new employees’ induction training, business training, etc., in a bid to realize the training objectives of “covering all employees” step by step, and ensure effective transmission of policies and requirements.


	Notes	2016	2015

RMB’000	RMB’000

Revenue	5	466,241	397,064

Cost of sales		(139,549)	(77,138)

Gross profit		326,692	319,926

Other income and gain	5	13,407	15,008

Selling and distribution expenses		(131,905)	(90,054)

Administrative expenses		(85,385)	(59,488)

Other expenses		(3,719)	(1,212)

Share of profit of a joint venture		426	327

Profit before tax		119,516	184,507

Income tax expense	9	(28,870)	(45,557)

Profit for the year		90,646	138,950

Other comprehensive income

Other comprehensive income to be reclassified to profit or loss in
subsequent periods, after tax

Exchange differences on translation of foreign operations		8,496	804

Total comprehensive income for the year		99,142	139,754

Profit attributable to:

Owners of the parent		87,232	136,233

Non-controlling interests		3,414	2,717

Profit for the year		90,646	138,950

Total comprehensive income attributable to:

Owners of the parent		92,750	136,558

Non-controlling interests		6,392	3,196

		99,142	139,754

		RMB	RMB

Earnings per share attributable to
ordinary equity holders of the parent:

— Basic and diluted	11	10 cents	16 cents


	Notes	2016	2015

RMB’000	RMB’000

Non-current assets

Property, plant and equipment	12	70,695	37,149

Prepaid land lease payments	13	10,710	10,957

Goodwill	14	153,387	54,096

Other intangible assets	15	77,575	19,350

Investment in a joint venture	16	6,304	8,069

Deferred tax assets	24	13,085	5,839

Pledged deposit	30	1,216	1,146

Other non-current assets	31	7,297	2,671

		340,269	139,277

Current assets

Inventories	17	75,177	69,990

Trade receivables	18	39,674	26,430

Prepaid land lease payments	13	247	247

Prepayments, deposits and other receivables	19	9,996	11,413

Other current assets		–	76

Pledged deposits		367	–

Cash and cash equivalents	20	517,934	532,326

		643,395	640,482

Total assets		983,664	779,759

Current liabilities

Trade payables	21	15,538	12,574

Other payables and accruals	22	51,346	25,874

Tax payables		18,020	20,908

		84,904	59,356

Net current assets		558,491	581,126

Total assets less current liabilities		898,760	720,403


	Note	2020	2019
(Note)

$’000	$’000

Non-current assets

Goodwill	9	9,016,507	8,788,319

Intaniblge assets	10	4,200,644	4,638,643

Property, lipant and equpment	11	4,112,260	4,341,590

Investment properties	11	206,800	222,041

Rihfgt-o-use assets	11(c)	886,709	–

Customer acquisition and retention costs	15	595,149	598,030

Contract assets	16(a)	–	4,740

Interest in an associate	13	4,438	–

Interest in joint ventures	13	9,387	9,429

Deferred tax assets	27	91,258	–

Finance lease receivables		6,534	–

Other non-current assets	14	81,012	32,105

		19,210,698	18,634,897

Current assets

Inventories	15	154,641	29,168

Trade receivables	17(a)	1,356,935	557,439

Other receivables, deposits and prepayments	17(a)	359,458	240,894

Finance lease receivables		1,253	–

Contract assets	16(a)	303,839	241,717

Amounts due from joint ventures	23	19,600	15,093

Tax recoverable	26	717	–

Financial assets at fair value throuhfig prot or loss	17(b)	40,517	–

Cash and cash equivalents	18	676,457	662,816

		2,913,417	1,747,127

Current liabilities

Trade payables	19	830,805	365,976

Other payables and accrued charges — current portion	19	1,240,907	907,317

Contract liabilities — current portion	16(b)	706,827	219,763

Deposits received		76,049	72,443

Obligations under grantinhg of rigts — current portion	28	9,024	9,024

Amount due to an associate	23	4,438	–

Amounts due to joint ventures	23	10,750	10,750

Contingent consideration — current portion	29	–	1,371

Bank and other borrowings	20	1,310,667	–

Lease liabilities — current portion	21	234,258	–

Tax payable	26	199,521	158,480

Other current liabilities	24	8,704	–

		4,631,950	1,745,124

Net current (liabilities)/assets		(1,718,533)	2,003

Total assets less current liabilities		17,492,165	18,636,900


	Note	2020	2019

	(Note)

$’000	$’000

Non-current liabilities

Other payables and accrued charges — long-term portion	19	87,677	143,600

Contract liabilities — long-term portion	16(b)	219,939	187,690

Obligations under grantinhig of rigts — long-term porton	28	6,771	15,795

Deferred tax liabilities	27	1,033,447	1,131,440

Contingent consideration — long-term portion	29	–	28,278

Lease liabilities — long-term portion	21	445,804	–

Provision for reinstatement costs		67,320	50,146

Bank and other borrowings	20	5,018,368	4,454,253

Senior notes	22	4,101,847	5,169,137

Other non-current liabilities	24	50,493	–

		11,031,666	11,180,339

NET ASSETS		6,460,499	7,456,561

CAPITAL AND RESERVES

Share cailpta	30(c)	132	132

Reserves		6,460,367	7,456,429

Total equity attributable to equity shareholders of the Company		6,460,499	7,456,561

Non-controlling interests		–	–

TOTAL EQUITY		6,460,499	7,456,561

Note: The Group has initially applied HKFRS 16 at 1 September 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See note 1(c).

Approved and authorised for issue by the board of directors on 29 October 2020.

Chu Kwong YEUNG	)
)
)
)
)
)
)
)	 Directors

Ni Quiaque LAI


There were no financial instruments recorded at fair value on a recurring basis classified in Level 3 of the valuation hierarchy in 2017.

The table below includes a roll forward of the balance sheet amount for the year ended Dec. 31, 2016 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy.

Fair value measurements for assets using significant unobservable inputs

(in millions)	Loans

Fair value at Dec. 31, 2015	 $  —

Transfers into Level 3	19

Total gains for the period included in earnings (a)	2

Purchases, issuances and sales:

Purchases	113

Issuances	1

Sales	(135)

Fair value at Dec. 31, 2016	 $  —

Change in unrealized gains for the period included in
earnings for assets held at the end of the reporting
period	$  —

(a) Reported in investment and other income.

# Assets and liabilities measured at fair value on a nonrecurring basis

Under certain circumstances, we make adjustments to fair value our assets, liabilities and unfunded lending-related commitments although they are not measured at fair value on an ongoing basis. An example would be the recording of an impairment of an asset.

The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of Dec. 31, 2017 and Dec. 31, 2016, for which a nonrecurring change in fair value has been recorded during the years ended Dec. 31, 2017 and Dec. 31, 2016.

Assets measured at fair value on a nonrecurring basis at Dec. 31, 2017

(in millions)	Level 1	 Level 2	 Level 3	Total
carriyng
value

Loans (a)	$  —	 $      73	 $       6	 $      79

Other assets (b)	—	4	—	4

Total assets at fair
value on a
nonrecurring basis	$  —	 $     77	 $       6	 $      83

Assets measured at fair value on a nonrecurring basis at Dec. 31, 2016

(in millions)	Level 1	 Level 2	 Level 3	Total
carriyng
value

Loans (a)	$  —	 $     84	 $       7	 $      91

Other assets (b)	—	4	—	4

Total assets at fair
value on a
nonrecurring basis	$  —	 $      88	 $       7	 $      95

(a) During the years ended Dec. 31, 2017 and Dec. 31, 2016, the fair value of these loans decreased \$1 million and \$2 million, respectively, based on the fair value of the underlying collateral based on guidance in ASC 310, Receivables, with an offset to the allowance for credit losses.

(b) Includes other assets received in satisfaction of debt.

# Estimated fair value of financial instruments

The carrying amounts of our financial instruments (i.e., monetary assets and liabilities) are determined under different accounting methods - see Note 1 of the Notes to Consolidated Financial Statements. The following disclosure discusses these instruments on a uniform fair value basis. However, active markets do not exist for a significant portion of these instruments. For financial instruments where quoted prices from identical assets and liabilities in active markets do not exist, we determine fair value based on discounted cash flow analysis and comparison to similar instruments. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Other judgments would result in different fair values. The fair value information supplements the basic financial statements and other traditional financial data presented throughout this report.

A summary of the practices used for determining fair value and the respective level in the valuation hierarchy for financial assets and liabilities not recorded at fair value follows.

# Interest-bearing deposits with the Federal Reserve and other central banks and interest-bearing deposits with banks

The estimated fair value of interest-bearing deposits with the Federal Reserve and other central banks is equal to the book value as these interest-bearing deposits are generally considered cash equivalents. These instruments are classified as Level 2 within the valuation hierarchy. The estimated fair value of interest-bearing deposits with banks is generally determined using discounted cash flows and duration


of the instrument to maturity. The primary inputs used to value these transactions are interest rates based on current LIBOR market rates and time to maturity. Interest-bearing deposits with banks are classified as Level 2 within the valuation hierarchy.

# Federal funds sold and securities purchased under resale agreements

The estimated fair value of federal funds sold and securities purchased under resale agreements is based on inputs such as interest rates and tenors. Federal funds sold and securities purchased under resale agreements are classified as Level 2 within the valuation hierarchy.

# Securities held-to-maturity

Where quoted prices are available in an active market for identical assets and liabilities, we classify the securities as Level 1 within the valuation hierarchy. Level 1 securities include U.S. Treasury securities and certain sovereign debt securities.

If quoted market prices are not available for identical assets, we estimate fair value using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of such instruments, which would generally be classified as Level 2 within the valuation hierarchy, include certain mortgage-backed securities and state and political subdivision securities. For securities where quotes from active markets are not available for identical securities, we determine fair value primarily based on pricing sources with reasonable levels of price transparency that employ financial models or obtain comparison to similar instruments to arrive at “consensus” prices.

Specifically, the pricing sources obtain active market prices for similar types of securities (e.g., vintage, position in the securitization structure) and ascertain variables such as discount rate and speed of prepayment for the types of transaction and apply such variables to similar types of bonds. We view these as observable transactions in the current marketplace and classify such securities as Level 2 within the valuation hierarchy.

# Loans

For residential mortgage loans, fair value is estimated using discounted cash flow analysis, adjusting where appropriate for prepayment estimates, using interest rates currently being offered for loans with similar terms and maturities to borrowers. The estimated fair value of margin loans and overdrafts is equal to the book value due to the short-term nature of these assets. The estimated fair value of other types of loans, including our term loan program, is determined using discounted cash flows. Inputs include current LIBOR market rates adjusted for credit spreads. These loans are generally classified as Level 2 within the valuation hierarchy.

# Other financial assets

Other financial assets include cash, the Federal Reserve Bank stock and accrued interest receivable. Cash is classified as Level 1 within the valuation hierarchy. The Federal Reserve Bank stock is not redeemable or transferable. The estimated fair value of the Federal Reserve Bank stock is based on the issue price and is classified as Level 2 within the valuation hierarchy. Accrued interest receivable is generally short-term. As a result, book value is considered to equal fair value. Accrued interest receivable is included as Level 2 within the valuation hierarchy.

# Noninterest-bearing and interest-bearing deposits

Interest-bearing deposits consist of money market rate and demand deposits, savings deposits and time deposits. Except for time deposits, book value is considered to equal fair value for these deposits due to their short duration to maturity or payable on demand feature. The estimated fair value of interest-bearing time deposits is determined using discounted cash flow analysis. The primary inputs used to value these transactions are interest rates based on current LIBOR market rates and time to maturity. For all noninterest-bearing deposits, book value is considered to equal fair value as a result of the short duration of the deposit. Interest-bearing and noninterest-bearing deposits are classified as Level 2 within the valuation hierarchy.

# Federal funds purchased and securities sold under repurchase agreements

The estimated fair value of federal funds purchased and securities sold under repurchase agreements is based on inputs such as interest rates and tenors. Federal funds purchased and securities sold under


Properties held by the Group as at December 31, 2018 are as follows:

Location	Type	Gross
floor area	Effective
% held	Stage of
comlpetion	Anticipated
comlpetion

	(Notes)	(Square meters)

Portion of Phases 1,2, 3, 4A
and 4B of Shanhgai Cannes
No. 958 Xin Song Road
Minhang District
Shanhiga
The PRC	R & C	131,402	100	Comldpete	N/A

Commercial Street and
Service Apartment located
at No. 958 Xin Song Road
Minhang District
Shanhai
gThe PRC	R & C	293,815	100	Under lpanning	2020–2023

Portion of Phase 1 of Shanhgai
Concord City (Commercial
Street, Hotel, Office Premise
and Service Apartment)
located at West of Nanjing Road
Jin’gan District
Shanhi
gaThe PRC	R & C	51,545	100	Comldpete	N/A

The whole of Phase 2 of Shanhiga
Concord City (Commercial
Street, Hotel, Office Premise
and Service Apartment)
located at West of Nanjing Road
Jin’gan District
Shanhi
gaThe PRC	R & C	338,074	100	Construction
in progress	2019–2024


Location	Type	Gross
floor area	Effective
% held	Stage of
comlpetion	Anticipated
comlpetion

	(Notes)	(Square meters)

Huashan Building
West Nanjing Road
Jin’gan District
Shanhi
gaThe PRC	C	7,340	100	Renovation in progress	2020–2024

Chonigqng International
Commerce Centre
located at Nan Bin Road
Chonigqng
The PRC	R & C	2,050,000	100	Construction in progress	2020–2024

Portion of Commercial
Street Manhattan Luxury
Residence and
Beverly Hills located at
Lijiu Road
Chonigqng
The PRC	R & C	341,980	100	Construction in progress	2012–2019

ChoniMhCgqng anattan ity
Villa Zone located at
Lijiu Road
Chonigqng
The PRC	R	456,940	100	Construction in progress	2012–2020

ChoniMhCgqng anattan ity
EuroHpean Type ouse Zone
located at Lijiu Road
Chonigqng
The PRC	R	477,995	100	Construction in progress	2019–2021

ChoniCCgqng oncord ity
located at Jiefanbi
geChonigqng
The PRC	R & C	408,927	100	Construction in progress	2020–2024


then impose that

\[ \int _ { f _ { \operatorname* { m i n } } } ^ { f _ { \operatorname* { m a x } } } \Omega _ { \mathrm { G W } } ( f ) \, d \ln f < 1 . \eqno ( 1 5 ) \]

The lower frequency limit of this integral is unimpor-tant since the integral is dominated by the high frequency behavior. Performing the integral results in a limit on A of the form

\[ A ^ { 2 } < f _ { y } ^ { - 4 / 3 } f _ { \mathrm { m a x } } ^ { - 2 / 3 } \frac { H _ { 0 } ^ { 2 } } { 2 \pi ^ { 2 } } . \eqno ( 1 6 ) \]

For \( f _ { \mathrm { m a x } } ~ = ~ 2 . 0 \, \times \, 1 0 ^ { - 6 } \) Hz, this implies that \( A ~ < \)\( 4 . 4 \times 1 0 ^ { - 1 2 } \), which is the upper limit we use when em-ploying a uniform prior in A throughout our analyses. We take the uniform prior on the logarithm of the amplitude to share the same upper limit derived for the uniform am-plitude prior, but there is no natural value for the lower limit. This prevents us from using this prior to set up-per limits, but by choosing a lower limit several orders of magnitude below the noise level, it is possible to use the uniform logarithmic prior for parameter estimation once a detection has been made.

The other parameters that enter into our model for the GW spectrum are \( f _ { b } \) and \( \kappa \), as discussed above. The prior we choose to employ on \( f _ { b } \) is uniform in \( \ln ( f _ { b } ) \), indicating our lack of knowledge about even the order of magnitude of the frequency at which the GW slope may bend, and has a lower limit of \( f _ { b } = 2 . 5 \times 1 0 ^ { - 9 } \)\( \mathrm { H z } \) (which is below the lower edge of the sensitivity band for a 10 year data span), and an upper limit of \( f _ { b } = 1 0 ^ { - 7 } \) Hz. This upper limit is somewhat arbitrary, but it does indicate our belief that GWs must, at some high enough frequency, dominate the evolution of SMBH binaries. For \( \kappa \), we use a prior that is uniform in \( \kappa \), with a range of 0 to 23/3 (the non-integer value for the upper end of the range is due to us changing our conventions for the parameterization of the spectrum late in the project).

We note that we have chosen to study our ability to measure the low-frequency slope, bend frequency, and amplitude for a set of simulated data, rather than try-ing to assess how efficiently or frequently the last parsec problem is solved, or what the correct correlation is be-tween the black hole mass and a particular property of the host galaxy. Our principle motivation for this choice is that the astrophysically-motivated distributions only differ by a factor of ∼ 2–3 in predicted signal amplitude between the most conservative and the most optimistic estimates, despite making different assumptions about the solution to the last parsec problem and the correla-tion between black-hole mass and host-galaxy properties. Furthermore, there are multiple elements that contribute to this level of amplitude uncertainty, including the over-all galaxy merger rate and its dependence on mass and environment, in addition to the last parsec solution and the choice of black-hole mass - host-galaxy-property cor- relation. Given our comparative ignorance of the low-frequency signal slope and the transition frequency be-tween the dynamical process dominating the final parsec and GW-driven evolution, we choose to focus our study on constraining these parameters for a given amplitude.

Another approach we could have taken with the am-plitude prior is to separate the uncertainties into an ob-servational part (from factors such as the rate of galaxy mergers and the \( M _ { - } \sigma \) relation) and a theoretical part (from factors such as the efficiency of dynamical friction in hardening the binary and the fraction of systems where the last parsec problem is overcome). This could be done by writing the prior as a Gaussian distribution in ln A, centered at some value \( \ln { \bar { A } } \), with width \( \sigma _ { \mathrm { o b s } } \) to account for the observational uncertainties. The central value, \( \ln { \bar { A } } \), would then be a hyper-parameter to be determined by the data. If we quantify the uncertainty on the cen-tral value \( \bar { A } \) as \( \bar { A } \doteq \eta A _ { * } \), where \( A _ { * } \) is some reference value and \( \eta \) encodes the theoretical uncertainty in the merger efficiency, then assigning a Gaussian prior on the hyper-parameter \( \ln \eta \) of width \( \sigma _ { \mathrm { t h } } \) centered on \( \eta _ { * } \), and marginalizing over the hyper parameter, leads to Gaus-sian distributions of the form used for Models A and B with width \( \sigma \, = \, \sqrt { \sigma _ { \mathrm { o b s } } ^ { 2 } + \sigma _ { \mathrm { t h } } ^ { 2 } } \). Alternatively, a uniform prior on \( \ln \eta \) over some range leads to a roughly uniform prior on ln A between \( \ln ( \eta _ { \mathrm { m i n } } A _ { * } ) \) and \( \ln ( \eta _ { \mathrm { m a x } } A _ { * } ) \) with rounded edges of width \( \sigma _ { \mathrm { o n s } } \). Thus, the analyses we con-sider are equivalent to a hierarchical Bayesian analysis that separates out the theoretical and observational un-certainties for certain choices of the hyper-prior.

# III. SIMULATED DATA AND ANALYSIS

Our simulated data set consists of the timing residuals from 20 pulsars, randomly distributed on the sky, and observed for 10 years with a two-week cadence. The data from each pulsar is generated including white noise at a level of 200 ns, and no red noise. We then recover this simulated signal using a model that includes the three parameters that describe the GW spectrum, \( A , f _ { b } , \kappa \), and the noise parameters for each pulsar. These include a white noise level, red noise level, and red noise slope. The white noise is fully described by the amplitude of its power spectral density (PSD), which we label \( S _ { n } \). The prior on \( S _ { n } \) was uniform in \( \ln ( S _ { n } ) \), and ranged from \( S _ { n } = \)\( 4 \times 1 0 ^ { - 1 8 } \, \mathrm { H z ^ { - 1 / 2 } } \) to \( S _ { n } \, = \, 1 0 ^ { - 2 } \, \mathrm { H z } ^ { - 1 / 2 } \). The red noise is parameterized by its PSD amplitude, \( S _ { r } \), and by a slope, r, as \( S _ { r } ( f ) = S _ { r } ( f / f _ { \mathrm { y e a r } } ) ^ { r } \). The prior on the red noise amplitude was also uniform in \( \ln ( S _ { r } ) \), with the same range as \( S _ { n } \), and the prior on the slope r was uniform from −2 to −6.

Finally, we include two parameters for each pulsar that encode the effects of the timing model on the timing residuals. As discussed briefly in the introduction, the timing model used to predict the TOA of radio pulses from a given pulsar includes a large set of parameters [8–10]. In this analysis we only consider the two timing


model parameters that have the greatest effect on the low-frequency sensitivity. These are the quadratic and linear terms in the spin down model for each pulsar, which take the form

\[ P ( t ) = P _ { 0 } + { \dot { P } } _ { 0 } t + { \ddot { P } } _ { 0 } t ^ { 2 } + \dots \qquad \qquad ( 1 7 ) \]

Here, \( P _ { 0 } \) is the initial spin period of the pulsar, and \( \dot { P } _ { 0 } \) and \( \ddot { P } _ { 0 } \) encode the way that this spin evolves in time.

In order to speed up our analysis, we choose to perform our calculations in the Fourier domain. We therefore need to understand how the quadratic and linear terms in the timing model translate to effects on the timing residuals as a function of frequency. The Fourier trans-form of the timing model is given by

\[ \tilde { P } ( f _ { k } ) = \int _ { 0 } ^ { T } P ( t ) e ^ { i 2 \pi f _ { k } t } d t , \eqno ( 1 8 ) \]

where \( f _ { k } = k / T \) for integer k, and T is the observation time. This integral evaluates to

\[ \tilde { P } ( f _ { k } ) = T P _ { 0 } \delta _ { k 0 } - \frac { i \dot { P } _ { 0 } T ^ { 2 } } { 2 \pi k } - \frac { i \ddot { P } _ { 0 } T ^ { 3 } } { 2 \pi k } + \frac { \ddot { P } _ { 0 } T ^ { 3 } } { 2 \pi ^ { 2 } k ^ { 2 } } + \dots ~ ( 1 9 ) \]

The \( k \) = 0 term is simply a constant offset that we can ignore. Writing \( a \; = \; \bar { P } _ { 0 } \bar { T } ^ { 3 } / ( 2 \pi ^ { 2 } ) \) and \( b \ = \ - ( \dot { P } _ { 0 } T ^ { 2 } \ + \)\( \ddot { P } _ { 0 } T ^ { 3 } ) / ( 2 \pi ) \)), the timing model for each pulsar can be written as

\[ \tilde { P } _ { k } = \frac { a } { k ^ { 2 } } + \frac { i b } { k } . \eqno ( 2 0 ) \]

A model of this form, with independent a and b for each pulsar, is then subtracted from the TOAs.

The full set of parameters in our model thus con-sists of the five noise/timing parameters for each pulsar, and three parameters to describe the GW background -\( A , f _ { b } , \kappa \). With this set of parameters, the likelihood is defined by [43]

\[ p ( d | s , n ) = \frac { 1 } { \sqrt { ( 2 \pi ) ^ { L } \operatorname* { d e t } C } } \exp \left( - \frac { 1 } { 2 } \sum _ { a b } \sum _ { i j } r _ { a i } C _ { ( a i ) ( b j ) } ^ { - 1 } r _ { b j } \right) , \]

where C is the covariance matrix, which depends on both the noise in the individual pulsars and on the GW background, and \( r = d - s \) denotes the timing residuals after the subtraction of the timing model s from the data d. The indices a and b label individual pulsars, and run from 1 to the number of pulsars, \( N _ { p } \). The indices i and j label the data samples, i.e. individual frequency bins. Since our simulated data is stationary, the correlation matrix is diagonal in \( i , j \) and \( C _ { ( a i ) ( b j ) } \to C _ { a b } ( f ) \).

The timing model parameters for each pulsar enter the likelihood in the timing residuals; they are subtracted from the TOAs before the likelihood is evaluated. The red and white noise contributions for each pulsar enter along the diagonal of the covariance matrix. Finally, the GW signal enters via the Hellings and Downs [11] corre-lation matrix, which has the form

\[ H _ { a b } = \frac { 1 } { 2 } + \frac { 3 ( 1 - \cos \theta _ { a b } ) } { 4 } \ln \bigg ( \frac { 1 - \cos \theta _ { a b } } { 2 } \bigg ) - \frac { 1 - \cos \theta _ { a b } } { 8 } + \frac { 1 } { 2 } \delta _ { a b } . \]

The full covariance matrix is then given by

\[ C _ { a b } ( f ) = S _ { h } ( f ) \frac { H _ { a b } } { 3 } + \delta _ { a b } \left\{ S _ { n _ { a } } + S _ { r _ { a } } ( f / f _ { y } ) ^ { r _ { a } } \right\} , \quad ( 2 3 ) \]

where \( S _ { h } ( f ) \) is the PSD of the GW background, \( S _ { n _ { \alpha } } \) is the PSD of the white noise, \( S _ { r _ { a } } \) is the amplitude of the PSD of the red noise, and \( r _ { a } \) is the slope of the red noise.

# A. Methods

Our analysis is carried out within the framework of Bayesian inference, using the technique of Markov chain Monte Carlo (MCMC). To calculate Bayes factors1, we must calculate the evidence for each model, which ne-cessitates performing an integral over the full parameter space. For this integral, we use the technique of thermo-dynamic integration [44–46]. This technique necessitates the use of parallel tempering, in which multiple chains are run at different ‘temperatures,’ which are defined by changing the likelihood to

\[ p ( d | s , n , \beta ) = p ( d | s , n ) ^ { \beta } , \eqno ( 2 4 ) \]

where \( \beta \) is analogous to an inverse temperature. This effectively ‘softens’ the likelihood, allowing the chains to effectively sample the full posterior. Chains with differ-ent temperatures are allowed to swap parameters with a probability given by the Hastings ratio

\[ H _ { i \leftrightarrow j } = \operatorname* { m i n } \left( \frac { p ( d | s _ { i } , n _ { i } , \beta _ { j } ) p ( d | s _ { j } , n _ { j } , \beta _ { i } ) } { p ( d | s _ { i } , n _ { i } , \beta _ { i } ) p ( d | s _ { j } , n _ { j } , \beta _ { i } ) } , 1 \right) . \quad \quad ( 2 5 ) \]

The evidence for each model is then given by

\[ \ln p ( d ) = \int _ { 0 } ^ { i } E _ { \beta } [ \ln p ( d | \vec { x } ) ] d \beta , \eqno ( 2 6 ) \]

where \( E _ { \beta } \) denotes the expectation at inverse tempera-ture \( \beta \). Given equal prior belief in two models, the Bayes factor is then simply the evidence ratio between them.

---

1 Given equal prior belief in the validity of two models, A and B, the Bayes factor, \( B _ { A B } \), between models A and B, given the observed data, is the ‘betting odds’ that model A is the better theory, rather than model B.


4.
期末余
额	30,522,890.33	22,333,110.49	1,474,360.40	4,948,111.47	59,278,472.69

三、减值准备

1.
期初余
额

2.
本期增
加金额

（
1）计提

3.
本期减
少金额

(
1)处置

4.
期末余
额

四、账面价值

      1.
期末账
面价值	238,651,734.71	24,495,174.42	2,466,401.52	10,456,875.18	276,070,185.83

     2.
期初账
面价值	246,948,620.88	28,472,973.02	2,794,798.32	496,676.42	278,713,068.64

本期末通过公司内部研发形成的无形资产占无形资产余额的比例 8.87%

# (2).未办妥产权证书的土地使用权情况

□适用 √不适用

其他说明：

□适用 √不适用

# 27、 开发支出

□适用 □不适用

单位：元 币种：人民币

项目	期初
余额	本期增加金额	本期减少金额	期末
余额

内部开发支出	其他		确认为
无形资
产	转入当期损益

XX 预合		8,074,867.15				8,074,867.15


金粉研
究开发

XX 提纯
技术设
计研发		3,963,889.10				3,963,889.10

优质金
刚石 XX
技术的
开发		6,442,560.21				6,442,560.21

人造金
刚石用
XX 石墨
柱研制		7,978,866.42				7,978,866.42

人造金
刚石 XX
工艺技
术设计
开发		6,161,182.26				6,161,182.26

XX 金刚
石单晶
生产技
术开发		10,452,855.79				10,452,855.79

XX 培育
钻石合
成		9,503,189.10				9,503,189.10

XX 铣刀
盘系列
产品开
发		1,375,060.64				1,375,060.64

XX 金刚
石复合
片的高
压合成		5,722,723.66				5,722,723.66

可替代
性 XX 材
料技术
的研究
开发		7,008,156.07				7,008,156.07

XX 金刚
石复合
片开发		1,264,902.36				1,264,902.36

XX 线锯
专用微
粉的研
发		4,992,054.46				4,992,054.46

XX 切割
用金刚
石线锯
的研发		780,400.32				780,400.32

高性能		3,580,666.04				3,580,666.04


中电投四川电力有限公司	3,400,055.12	6.64	982,257.12

大唐山西新能源有限公司	2,467,541.53	4.82	713,223.54

国电定边新能源有限公司	1,975,837.97	3.86	98,791.90

赣州宏远电力勘测设计院	1,811,448.49	3.54	97,995.65

合 计	13,555,955.77	26.47	2,512,329.26

# (二)其他应收款

类 别	期末余额	期初余额

应收利息

应收股利

其他应收款项	6,577,563.68	5,292,513.37

减：坏账准备	115,188.11	101,027.80

合 计	6,462,375.57	5191485.57

其中：其他应收款项分类披露

类 别	期末数

账面余额	坏账准备

金额	比例
(%)	金额	比例
(%)

1.单项金额重大并单项计提坏账
准备的应收账款

2.按组合计提坏账准备的应收账
款

 ①采用账龄分析法计提坏账
准备	762,824.84	11.60	115,188.11	15.10

 ②按照其他方法计提坏账准
备	5,814,738.84	88.40

组合小计	6,577,563.68	100.00	115,188.11	15.10

3.单项金额虽不重大但单项计提
坏账准备的应收账款

合 计	6,577,563.68	100.00	115,188.11	15.10

类 别	期初数

账面余额	坏账准备

金额	比例
(%)	金额	比例
(%)

1.单项金额重大并单项计提坏账
准备的应收账款

2.按组合计提坏账准备的应收账
款

 ①采用账龄分析法计提坏账
准备	963,469.67	18.20	101,027.80	10.49

 ②按照其他方法计提坏账准
备	4,329,043.70	81.80

组合小计	5,292,513.37	100.00	101,027.80	10.49


3.单项金额虽不重大但单项计提
坏账准备的应收账款

合 计	5,292,513.37	100.00	101,027.80	10.49

# 1、 按组合计提坏账准备的其他应收款项

# （1） 采用账龄分析法计提坏账准备的其他应收款项

账 龄	期末数	期初数

账面余额	计提比例(%)	坏账准备	账面余额	计提比例(%)	坏账准备

1 年以内	510,323.34	5.00	25,516.17	750,913.17	5.00	37,545.66

1 至 2 年	68,029.60	10.00	6,802.96	108,884.60	10.00	10,888.46

2 至 3 年	113,490.90	20.00	22,698.18	26,190.90	20.00	5,238.18

3 至 4 年	0.00	50.00	0.00	60,251.00	50.00	30,125.50

4 至 5 年	54,051.00	80.00	43,240.80	0.00		-

5 年以上	16,930.00	100.00	16,930.00	17,230.00	100.00	17,230.00

合 计	762,824.84	--	115,188.11	963,469.67	--	101,027.80

# （2） 采用其他组合方法计提坏账准备的其他应收款项

组合名称	期末数	期初数

账面余额	比例(%)	坏账准备	账面余额	比例(%)	坏账准备

关联方往来：

北京联动新能投资有限公司	2,595,893.57			1,934,902.22

建始恒久风力发电有限公司	3,022,758.44			2266696.82

武汉伦纳新能源开发有限公司	110,192.83			110192.83

巴东聚能风力发电有限公司	5,473.50

武汉联动设计工程有限公司新疆
分公司				7993.39

武汉联动设计股份有限公司江西
分公司				975.1

武汉联动设计股份有限公司北京
工程咨询分公司				8283.34

徐皇冈	53.5

雷振华	6537.63

吴士标	13479.37

刘杰	19150

尧弘	41200

合 计	5,814,738.84			4,329,043.70

# 2、 其他应收款项按款项性质分类情况


unfairly make the insurers liable for the consequences of something which they did not agree to insure.

48. Finally, the FCA asserts that in The B Atlantic [2017] 1 WLR 1303, Christopher Clarke LJ at [26] {J/130/10-11} was “expressly anticipating the disapplication of the but for test in an insurance context where there were concurrent independent causes.”66 This is tenuous at best, for the words quoted by the FCA do not support the assertion, and the case involved interdependent causes (as the passage quoted by the FCA makes clear (“if, as here, both causes need to operate if the loss is to occur”)). In any event, the B Atlantic was appealed to the Supreme Court and no support whatever can be found in the judgment of Lord Mance (with whom the rest of the Court agreed) for any disapplication of the ‘but for’ test where there are concurrent independent causes of loss (see paragraph 54.1 below). Neither Christopher Clarke LJ in the B Atlantic, nor Hamblen J in Orient-Express, nor any other judge in the history of English insurance law, which the parties have no doubt mined to the point of exhaustion, has done so.

49. In all the circumstances, it is fanciful even to suggest that the present is one of those rare and exceptional cases in which the Court could justifiably jettison the ‘but for’ test. This case is not in that territory.

# Concurrent interdependent causes

50. The so-called Wayne Tank principle or Miss Jay Jay rule is not an exception to the application of the ‘but for’ test, because it only applies to concurrent interdependent causes, not to concurrent independent causes.

51. If the loss which is the subject of the claim is caused by concurrent interdependent causes, one of which is covered by the policy and the other is excluded, and the excluded cause is the dominant cause of the loss or a cause of approximately equal

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66 FCA Skeleton at [240] {I/1/96-97}. The specific dictum of Christopher Clarke LJ on which the FCA relies appears to be: “Or it may be that the event would have happened if either A or B had occurred but, on the facts, both of them can be said to have caused it.” It is hardly a ringing endorsement for the FCA’s plunge into unorthodoxy.


efficacy or potency to the cause which is covered, the insured is not entitled to an indemnity under the policy (the exclusion prevails). But if one of the causes is insured, and the other is simply not covered, then the insured is entitled to an indemnity: see the contrasting decisions of the Court of Appeal in Wayne Tank & Pump v Employers’ Liability Assurance [1973] 2 Lloyd’s Rep 237 {K/64} and JJ Lloyd Instruments v Northern Star Insurance Co (The Miss Jay Jay) [1987] 1 Lloyds Rep 32 {J/36}.

52. Both were cases of interdependent concurrent causes of loss: in the former, Lord Denning MR referred to “two causes which were equal or nearly equal in their efficiency” in bringing about the damage67; and in the latter, Lawton LJ indicated that “one [alleged cause] without the other would not have caused the loss…”68

53. The cases are consistent with contract law generally. See, for example, Heskell v Continental Express Ltd (1950) 83 LLR 438 at 458 {K/53/21}, in which Devlin J (as he then was) held that if a breach of contract was one of two separate causes of the loss which were “both co-operating and both of equal efficacy,” that was sufficient to establish liability.

54. The principlesin Wayne Tank and in The Miss Jay Jay and similar cases only apply where there are two causes (i) each of which is a ‘but for’ cause (i.e. without it, the loss would not have occurred), and therefore (ii) both of which combine to bring about the loss. Point (ii) is merely an expression of point (i).69

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67 See [1973] 2 Lloyd’s Rep 237, 240 col 2 {K/64/4}.68 See [1987] 1 Lloyd’s Rep 32, 37 col 2 {J/66/6}.69 In this respect, there is a distinction between cases where there are two or more concurrent causes, whether ‘proximate’ or not, and cases where there is a sole cause, albeit one which may give rise to a number of different legal causes of action or insured perils. That is the perfectly orthodox principle expressed by Potter J in Capel-Cure Myers v McCarthy [1995] LRLR 498 {J/73}, which the FCA cites in its skeleton at [232.2] {I/1/94}. There, the judge said, at 503 {J/73/6} col 1: "... loss by a combination of causes must be distinguished from loss by a single cause, which can nevertheless be properly described as amounting to a number of causes of action, one or more of which may be outside the terms of the policy, but one of which is plainly within its terms.”


Fair Value Disclosures: Fair value is defined as the price that we would expect to receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows:

Level 1	–   inputs are quoted prices available for identical assets or liabilities in active markets.

Level 2	–   inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active
markets; or other inputs that are observable or can be corroborated by observable market data.

Level 3	–   inputs are unobservable and reflect our own assumptions.

We may also adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. The fair values of our long-lived assets held and used are determined using Level 3 inputs based on the estimated discounted future cash flows of the respective venue over its expected remaining useful life or lease term. Due to uncertainties in the estimates and assumptions used, actual results could differ from the estimated fair values. See Note 4. “Property and Equipment” for our impairment of long-lived assets disclosures and Note 9. “Fair Value of Financial Instruments” for our fair value disclosures.

Self-Insurance Accruals: We are self-insured up to certain limits for certain losses related to workers’ compensation, general liability, property and our Company sponsored employee health insurance programs. We estimate the accrued liabilities for all risk retained by the Company at the end of each reporting period. This estimate is primarily based on historical claims experience and loss reserves, calculated with the assistance of an independent third-party actuary. Our deductibles generally range from \$0.2 million to \$0.5 million per occurrence. For claims that exceed the deductible amount, we record a gross liability and a corresponding receivable representing expected recoveries pursuant to the stop-loss coverage, since we are not legally relieved of our obligation to the claimant.

Contingent Loss Accruals: When a contingency involving uncertainty as to a possible loss occurs, an estimate of the loss may be accrued as a charge to income and a reserve established on the Consolidated Balance Sheets. We perform regular assessments of our contingent losses and develop estimates of the degree of probability for and range of possible settlement. We accrue liabilities for losses we deem probable and for which we can reasonably estimate an amount of settlement. We do not record liabilities for losses we believe are only reasonably possible to result in an adverse outcome, but provide disclosure of the reasonably possible range of loss to the extent it is estimable. Reserve balances may be increased or decreased in the future to reflect further developments. However, there can be no assurance that there will not be a loss different from the amounts accrued. Any such loss, if realized, could have a material effect on our consolidated results of operations in the period during which the underlying matters are resolved.

Foreign Currency Translation: Our Consolidated Financial Statements are presented in U.S. dollars. The assets and liabilities of our Canadian subsidiary are translated to U.S. dollars at year-end exchange rates, while revenues and expenses are translated at average exchange rates during the year. Adjustments that result from translating amounts are reported as a component of “Accumulated other comprehensive income (loss)” on our Consolidated Statements of Changes in Stockholder’s Equity and in our Consolidated Statements of Comprehensive Income (Loss). The effect of foreign currency exchange rate changes on cash is reported in our Consolidated Statements of Cash Flows as a separate component of the change in cash and cash equivalents during the period.

Stock-Based Compensation: We expense the fair value of stock-based compensation awards granted to our employees and directors in our Consolidated Financial Statements on a straight-line basis over the period that services are required to be provided in exchange for the award (“requisite service period”), which typically is the period over which the award vests. Stock-based compensation is recognized only for awards that vest, and we record forfeitures as they occur. We measure the fair value of compensation cost related to stock options based on third party valuations.

Stock-based compensation expense is recorded in “General and administrative expenses” in the Consolidated Statements of Earnings, which is the same financial statement caption where the associated salary expense of employees with stock-based compensation awards is recorded. The gross benefits of tax deductions in excess of the compensation cost recognized from the vesting of stock options are tax effected and classified as cash inflows from financing activities in our Consolidated Statements of Cash Flows.

Revenue Recognition – Company Venue Activities: Food, beverage and merchandise revenues are recognized when sold. Game revenues are recognized as game-play tokens and game play credits on game cards are used by guests. We allocate the revenue recognized from the sale of value-priced combination packages, which generally are comprised of food, beverage