Stock Code: 600415 Stock short name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.2023 Annual Report
Important NoteI. The Board of Directors, the supervisory committee and the directors, supervisors andsenior management of the Company hereby warrant the truthfulness, accuracy andcompleteness of the contents of the Annual Report, guarantee that there are no falserepresentations, misleading statements or material omissions contained in thisAnnual Report, and are jointly and severally responsible for the liabilities of theCompany.
II. All directors of the Company were present at the board meeting.
III. Ernst & Young Hua Ming Certified Public Accountants (special general partnership)
has issued a standard unqualified audit opinion for the Company.
IV. ZHAO Wenge, Head of the Company, WANG Dong, Head in charge of accounting, andZHAO Difang, Head of the accounting department (Accounting Supervisor), declarethat they warrant the truthfulness, accuracy and completeness of the financial reportin the annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve fundsinto share capital that was approved by the board of directorsBased on the total share capital on the equity registration date for the 2023 profit distribution,a cash dividend of RMB 2.00 (including tax) will be distributed for every 10 shares. Based on thetotal share capital of the Company at the end of 2023, a total of RMB 1,096,866,835.20 (includingtax) in cash dividends will be distributed. If there is a change in the total share capital of theCompany before the equity registration date for equity distribution, it is proposed to maintain theper share distribution plan unchanged and adjust the total distribution amount accordingly.
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans anddevelopment strategies do not constitute the Company’s substantial commitments to investors.Investors shall watch out for the investment risks.VII. Is the Company’s cash occupied by its controlling shareholder or any of otheraffiliates for non-operational purposes?NoVIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?No
IX. Whether more than half of the directors can not warrant the truthfulness, accuracy
and completeness of the annual report disclosed by the CompanyNo
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please referto “Potential Risks” in “Section III Discussion and Analysis of Managers” of this Report..
XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions ............................................................................................................... 5
Section II. Company Profile and Financial Highlights .............................................................. 6
Section III. Discussion and Analysis of Managers .................................................................. 13
Section IV. Corporate Governance ......................................................................................... 59
Section V. Environmental and Social Responsibilities ........................................................... 82
Section VI. Significant Matters ................................................................................................ 84
Section VII. Changes in Shares and Shareholders ................................................................ 103
Section VIII. Bonds .................................................................................................................. 112
Section IX. Financial Report .................................................................................................. 121
| Documents for Inspection | Accounting statements with the signatures and stamps of the person incharge of the Company, person in charge of accounting and person in charge of the accounting body. |
| The original audit report with the seal of the accounting firm and the signature and seal of the certified public accountant | |
| The originals of all company documents and announcements publicly disclosed during the reporting period |
Section I. DefinitionsI. DefinitionsFor the purpose of this Report, unless otherwise stated in the context, the following terms shallhave the following meanings:
| Definitions | ||
| SCO | means | Yiwu State-owned Capital Operation Co., Ltd. |
| MDG | means | Yiwu Market Development Group Co., Ltd. |
| CCCH | means | Yiwu China Commodities City Holdings Limited |
| Zhijie Yuangang | means | Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. |
| CCCP | means | Yiwu China Commodities City Property Development Co., Ltd. |
| CCCF | means | Yiwu China Commodities City Financial Holdings Co., Ltd. |
| Huishang Micro-finance | means | Yiwu Huishang Micro-finance Co., Ltd. |
| Haicheng Company | means | Haicheng Yiwu China Commodities City Investment Development Co., Ltd. |
| Yiwu Shanglv | means | Yiwu Shanglv Investment Development Co., Ltd. |
| Chouzhou Financial Lease | means | Zhejiang Chouzhou Financial Lease Co., Ltd. |
| Yiwu Shangbo | means | Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. |
| Handing Shangbo | means | Yiwu Handing Shangbo Real Estate Co., Ltd. |
| Kuaijietong | means | Kuaijietong Payment Service Co., Ltd. |
| Yiwu Pay | means | Kuaijietong Payment Company's payment brand |
| The Company, the Listed Company, the Group, the Group Company | means | Zhejiang China Commodities City Group Co., Ltd. |
Section II. Company Profile and Financial Highlights
I. Company profile
| Chinese name | 浙江中国小商品城集团股份有限公司 |
| Chinese short name | 小商品城 |
| English name | Zhejiang China Commodities City Group Co.,Ltd |
| English short name | YIWU CCC |
| Legal representative | ZHAO Wenge |
II. Contact information
| Board Secretary | Securities Affairs Representative | |
| Name | XU Hang | RAO Yangjin |
| Address | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City |
| Telephone | 0579-85182812 | 0579-85182812 |
| Fax | 0579-85197755 | 0579-85197755 |
| Hxu@cccgroup.com.cn | Hxu@cccgroup.com.cn |
III. Basic Information
| Registered address | 567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua City, Zhejiang Province |
| Historical changes in the registered address of the Company | When the Company was established, its registered address was Haiyang Business Building, No. 105 Futian Road, Yiwu City; In January 2024, the registered address of the Company was changed to No. 567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua City, Zhejiang Province. |
| Office address | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City |
| Postal code at the office address | 322000 |
| Corporate website | www.cccgroup.com.cn |
| 600415@cccgroup.com.cn |
IV. Places for information disclosure and access to the annual report
| Media's names and websites selected by the Company for annual report disclosure | China Securities Journal, Shanghai Securities News and Securities Times |
| Stock exchange website selected by the Company for annual report disclosure | www.sse.com.cn |
| Place for access to the Company’s annual report | Securities Department of the Company |
V. Stock profile
| Stock profile | ||||
| Type of stock | Exchange | Stock short name | Stock code | Stock short name before change |
| A share | Shanghai Stock Exchange | 小商品城 | 600415 | No |
VI. Other relevant information
| CPAs engaged by the Company (domestic) | Name | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) |
| Office address | 16th Floor, Ernst & Young Building, Oriental Plaza, 1 Chang'an Street, Dongcheng District, Beijing, China |
| Name of the Signing Certified Public Accountants | TAN Chaohui and LING Yuehan |
VII. Major accounting data and financial indicators in the past three years(i) Major accounting data
Unit: RMB
| Major accounting data | 2023 | 2022 | YoY change (%) | 2021 |
| Operating revenue | 11,299,686,665.89 | 7,619,693,742.60 | 48.30 | 6,033,842,972.95 |
| Net profits attributable to shareholders of the Listed Company | 2,676,182,133.26 | 1,104,719,091.71 | 142.25 | 1,334,095,906.95 |
| Net profits attributable to shareholders of the Listed Company with non-recurring items excluded | 2,468,685,982.43 | 1,765,087,553.23 | 39.86 | 1,221,808,001.15 |
| Net cash flow from operating activities | 1,845,059,849.92 | 1,400,090,713.77 | 31.78 | 2,033,082,507.76 |
| At the end of 2023 | At the end of 2022 | YoY change (%) | At the end of 2021 | |
| Net assets attributable to shareholders of the Listed Company | 17,688,393,818.20 | 15,262,290,780.57 | 15.90 | 14,610,845,868.33 |
| Total assets | 36,218,947,223.63 | 32,111,004,317.38 | 12.79 | 31,014,635,513.35 |
(ii) Major financial indicators
| Major financial indicators | 2023 | 2022 | YoY change (%) | 2021 |
| Basic EPS (RMB) | 0.49 | 0.20 | 145.00 | 0.25 |
| Diluted EPS (RMB) | 0.49 | 0.20 | 145.00 | 0.25 |
| Basic EPS after deducting non-recurring gains and losses (RMB/share) | 0.45 | 0.32 | 40.63 | 0.22 |
| Weighted average ROE (%) | 16.06 | 7.30 | Up 8.76 ppt | 9.38 |
| Weighted average ROE after deducting non-recurring gains and losses (%) | 14.82 | 11.67 | Up 3.15 ppt | 8.59 |
Explanation of main accounting data and financial indicators of the Company in the previousthree years at the end of the report period
√Applicable □Not applicable
1. The operating revenue increased by RMB 3.68 billion YoY, mainly due to the opening
of the Second District East New Energy Product Market, the rent reduction in theprevious year, and the YoY expansion of product sales scale.
2. The net profit attributable to shareholders of the Listed Company increased by RMB
1.571 billion YoY, mainly due to the YoY increase in market operating profit, tradeperformance service business profit, and investment income.
3. The net profit attributable to shareholders of the Listed Company after deduction of
non-recurring gains and losses increased by RMB 704 million YoY, mainly due to theincrease of RMB 1.571 billion in net profits attributable to shareholders of the ListedCompany and the increase of RMB 868 million in non-recurring gains and losses YoY.
4. The net flow generated by operating activities increased by RMB 445 million YoY,
mainly due to the increase of RMB 665 million YoY in the net cash received afterdeduction of payment for sales of goods and provision of service and the decreaseof RMB 278 million YoY in the tax refund received.
VIII. Differences in accounting data between foreign and Chinese accounting standards(i) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with international accounting standards andChina accounting standards in the financial report
□Applicable √Not applicable
(ii) Differences between the net profit and net assets attributable to shareholders of theCompany disclosed in accordance with overseas accounting standards and Chinaaccounting standards in the financial report
□Applicable √Not applicable
(iii) Explanation of differences between domestic and overseas accounting standards
□Applicable √Not applicable
IX. Key financial indicators by quarter in 2023
Unit: RMB
| 1st Quarter (Jan- Mar) | 2nd Quarter (Apr-Jun) | 3rd Quarter (Jul-Sep) | 4th Quarter (Oct-Dec) | |
| Operating revenue | 2,120,334,936.46 | 3,040,656,106.79 | 2,744,623,047.19 | 3,394,072,575.45 |
| Net profits attributable to shareholders of the Listed Company | 1,222,157,366.22 | 776,176,280.52 | 318,326,143.58 | 359,522,342.94 |
| Net profit attributable to shareholders of the Listed Company after deducting non-recurring gains and losses | 1,079,552,858.79 | 759,812,965.88 | 311,561,626.90 | 317,758,530.86 |
| Net cash flow from operating activities | -310,531,782.92 | 453,778,978.70 | 229,217,122.95 | 1,472,595,531.19 |
Explanation of difference between quarterly data and disclosed data in regular reports
□Applicable √Not applicable
X. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
| Non-recurring items | Amount for 2023 | Remark (if applicable) | Amount for 2022 | Amount for 2021 |
| Non-current asset disposal gains and losses, including the offsetting portion of the provision for impairment of assets | 139,113,943.98 | -1,130,587.34 | -561,416.89 | |
| Government grants that are recognized in the current profit or loss, excluding the government grants that are closely related to the normal operation of the Company and provided in a fixed amount or quantity and that have a continuous impact on the Company's gains and losses according to the national polices and certain standards | 32,404,875.29 | 38,802,436.81 | 23,559,898.01 | |
| Except for effective hedging business related to the normal operation of the Company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | -51,087,595.90 | Mainly due to gains or losses arising from the change in fair value | 166,489.60 | 7,298,587.58 |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 18,907,795.24 | Cash occupation fee for receiving financial aid | 52,315,023.80 | 107,299,598.45 |
| Profits and losses arising from external entrusted loans | 2,525,847.12 | 79,561.64 | - | |
| Net income from other non-operating activities | 6,365,155.41 | 3,244,125.63 | 3,504,923.76 | |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 121,465,746.29 | Mainly due to the reversal of expected liabilities for letter of credit litigation | -975,086,670.50 | 1,604,200.49 |
| Less: effect of income tax | 60,306,979.87 | -223,084,975.36 | 28,698,936.71 | |
| Effect of minority interest (after-tax) | 1,892,636.73 | 1,843,816.52 | 1,718,948.89 | |
| Total | 207,496,150.83 | -660,368,461.52 | 112,287,905.80 |
Explanations shall be made for the non-recurring items identified by the Company according to the Explanatory Announcement No. 1 on InformationDisclosure by Companies Publicly Offering Securities – Non-recurring Items, and for the Company identifying the non-recurring items enumerated in
the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
XI. Items measured at fair value
√Applicable □Not applicable
Unit: RMB 10,000
| Item | Opening balance | Closing balance | Changes for the current period | Amount of impact on current profits |
| Held-for-trading financial assets | 6,233.10 | 1,513.09 | -4,720.01 | 404.25 |
| Other equity instruments investment | 49,920.08 | 55,689.74 | 5,769.66 | 376.28 |
| Other non-current financial assets | 150,030.76 | 142,156.99 | -7,873.77 | -3,983.94 |
| Total | 206,183.94 | 199,359.82 | -6,824.12 | -3,203.41 |
XII. Other
□Applicable √Not applicable
Section III. Discussion and analysis of managersI. Discussion and analysis of operation2023 marked the 30th anniversary of the Company's establishment. All cadres andemployees have united and worked hard to advance various tasks to a new level. TheCompany's revenue and profits reached historic highs, and its market operation steadilyimproved. Its core competitiveness has been continuously enhanced, and new businesses haverapidly emerged. The Company has entered a new stage of development.
(i) Market operation
1. Dynamic adjustment of rent
In the current economic environment, the rationality of the rental price system is crucial forthe healthy development of the market. In order to better adapt to market changes and promotebalanced development of various industries, the Company has established an industryevaluation system based on the Yiwu Index. This system constructs a differentiated pricingmodel for shop rental prices by introducing indicators such as China's GDP growth rate,fluctuations in market-oriented rental prices, market prosperity index, market commodity priceindex, industry prosperity index, and block prosperity index.According to the pricing model mentioned above, the Company adjusted the rent of themarket's due shops at the end of the reporting period, with an average rent increase of 5.5%. Itis expected that the growth rate will not be less than 5% in the next three years.The implementation of the rent differentiated pricing model will help balance the competitiveenvironment within the market and provide merchants with a more fair and transparent businessenvironment. This not only helps to enhance the overall competitiveness of the market, but alsopromotes the effective allocation of resources and the sustainable development of the industry,laying a solid foundation for the long-term prosperity and stability of the Yiwu market.
2. Construction of digital market
During the reporting period, the Second District East New Energy Market opened with anadditional construction area of 131,000 square meters, and more than 650 new shops wereadded on the first to third floors. The investment positioning for the third floor was completed inDecember. Therefore, the offline market further expanded. The construction of the digital marketmodel in the Second District East of the International Trade City was accelerating, and a newmarket trade scenario with online and on-site integration and cloud-network linkage waspreliminarily taking shape. As of the end of December, digital tools such as business advisors,electronic business cards, and event calendars were launched; iterative optimization of digitalsoftware and hardware service functions such as AI interactive screens, digital market miniprograms, and passenger flow analysis systems were completed. The construction of the GlobalDigital Trade Center, a landmark project in the sixth-generation market, was accelerating with
increased efficiency, exploring the construction of an innovative ecosystem for digital trade, andcreating a new model for the future digital commodity market.
(Figure 1. Aerial View of Second District East New Energy Product Market)
(ii) Online platformSince its launch in October 2020, the Chinagoods platform has had over 10 million productsuploaded and over 4.09 million buyers registered. It has also launched and operated six nationalwebsites, including Spain, Dubai, and Colombia. In 2023, the online trade volume of servicesexceeded RMB 65 billion, and a comprehensive international trade service system of"digitalization of traditional markets+ digitalization of trade performance" has been preliminarilyformed.
1. Launched the homepage and service section of the fourth party service platform, with atotal of 169 third-party service products launched; At the same time, relying on digital technologyand platform channels, we assisted merchants in precise positioning, customer flow attraction,and operation, and worked together with top platforms such as 1688.com, Baidu, and JD.com tobuild a fourth party service platform.
2. The AI project has launched Xiaoshang AI, digital human, AI intelligent product release,intelligent image matting, and has received widespread praise from market merchants. As of theend of December, the multilingual digital Lady Boss function covered over 3300 merchants, andhas been recorded and reported by more than 20 official media outlets, including CCTV, GlobalTimes, People's Daily, Xuexi Qiangguo, Zhejiang TV, Jinhua Daily, and Yiwu Publishing.
(iii) Exhibition
The Company focused on the dual empowerment of the market and exhibitions, integratingdomestic and overseas, online and on-site exhibitions, and achieved significant results inexhibition venue linkage. As of the end of December, 52 domestic exhibitions such as the China
Yiwu International Commodities Fair, China Yiwu Cultural and Tourism Products Trade Fair, andGift Exhibition were held, attracting over 1.74 million buyers; the Company organized enterprisesto go abroad to Thailand, Indonesia, Japan, Russia, Spain, Germany and other countries toexpand their markets, participating in 18 overseas exhibitions and economic and trade activities,with over 100 enterprise participants; 44 events were held, including Market Trips, industryvertical exhibitions, procurement fairs, and new product launches, attracting over 1.7 millionbuyers in total. The 29th China Yiwu International Commodities Fair had 2400 participatingcompanies, 3,800 international standard booths, and an exhibition area of 100,000 squaremeters. A total of 160,600 professional buyers attended the exhibition, including 16,500overseas buyers, with a record high attendance.
(Figure 2. Opening Ceremony of the 29th China Yiwu International Commodities
Fair)(iv) HotelsIn 2023, the hotel business line (including entrusted hotels) achieved a revenue of over RMB400 million, reaching a historic high. The Company also achieved interoperability between theChinagooods platform and the hotel membership system, and collaborated with the Big DataCompany and Yiwu Pay to carry out digital marketing activities; The New Yandoo Circle MemberPlatform optimized functions such as point management, self selection of benefits, andpersonalized customization, with 15,000 new members in this year; The Company upgraded theunified procurement platform and promoted the sharing and integration of centralizedprocurement information. The Company's hotels have successfully completed importantreception tasks such as the Hangzhou Asian Games and the World Urban and RuralOrganization Conference, fully showcasing the image of the Yiwu hotel industry and building areputation for the Yandoo Hotel Management brand; Starting from scratch and continuously
breaking through, "Fingertip Canteen" has achieved full coverage of Districts 1-5 of theInternational Trade City and the new headquarters building of the Group. The self-created coffeebrand Yandoo was gradually gaining popularity.
(Figure 3. A corner of Fingertip Canteen)(v) Trade performanceZhijie Yuangang strengthened its business operations, connects domestic exportconsolidation, multimodal transportation, overseas warehouses and other businesses, and hasinitially built a digital cross-border logistics third-party delivery platform to provide "end-to-end"full chain digital supply chain solutions for trading entities. As of the end of December, digitallogistics service products such as "Jihepai" and "Xiaokepai" were launched, with a total shipmentvolume of over 45,000 TEUs. The first "Yiwu China Commodities City - RCEP Silk RoadExpress" route has been launched and put into operation.
(vi) Digital payment (Yiwu Pay)During the reporting period, the Payment Company mainly carried out the followingbusinesses:
(1) Application for qualification license
Kuaijietong obtained the public announcement of the renewal of the Payment BusinessLicense from the People's Bank of China on July 5, 2023, and completed the license renewalwork on time, with a validity period of 5 years; On November 1st, it officially obtained the approvalof the State Administration of Foreign Exchange for the foreign exchange business qualificationlicense of payment institutions.
(2) Domestic payment business
The Payment Company further integrated into the Group's business scenarios and providedpersonalized payment and settlement services for the Chinagoods platform, market, supplychain, factoring, warehousing, logistics, hotels, Fingertip Canteen, and other Yiwu CCCecosystems.
(3) E-CNY business
Relying on the Group’s ecosystem, it carried out a special digital currency activity andlaunched an innovative model of e-CNY one-currency settlement, completing the docking withBank of China's e-CNY umbrella account system. In November, the Payment Company officiallysigned "E-CNY Cross-border Business Strategic Cooperation Agreement" with Bank of China,which provides comprehensive services such as B2B e-CNY cross-border fund circulation. It isthe earliest cross-border application of e-CNY in the B2B field in China.
(4) Cross-border RMB business
As of December 31, a total of over 20,000 cross-border RMB accounts were opened, witha new transaction volume of over RMB 8.5 billion for cross-border RMB payment services. TheCompany cooperated with hundreds of major banks worldwide, covering more than 150countries and regions across five continents, and can support over 25 currencies, with 16currencies received. All transactions have not involved any risk dispute funds, and there havebeen no frozen card incidents, providing a solid financial infrastructure guarantee for businessowners to smoothly go overseas.
(Figure 4. Partial operating data of Yiwu Pay)(vii) Yiwu Market Project
During the reporting period, the Yiwu China Commodities City’s “Yiwu Market Project”strategy was released, and a combination of "overseas sub-markets, overseas warehouses,overseas websites, Yiwu Selection overseas exhibition halls, and overseas exhibitions" wasestablished to promote small commodities to reach big markets.
1. Yiwu Market's overseas sub-market extension layout: sorting out the standard models forfranchise export in overseas sub-markets, focusing on research and planning to establishoverseas new small commodities trade centers in cities such as Jakarta in Indonesia, Cairo inEgypt, and Jeddah in Saudi Arabia.
Yiwu Pay has become a major force in global payment service
Unit: USD 100 million
| Unit: USD 100 million | |
| Monthly cross-border collection trend | |
2. The Company steadily promoted FBC overseas warehouses of China Commodities City:
Completed 5 FBC warehouses in Czech Republic, Malaysia, Mexico, etc., with a storage areaof over 100,000 square meters and serving over 500 enterprises; Introduced trade factoringbusiness in FBC warehouse in Malaysia.
3. The Company accelerated implementation of Yiwu Selection overseas exhibition halls:
Completed optimization and addition of 5 Yiwu Selection overseas exhibition halls, includingTokyo, Japan, Dubai, UAE, and S ? o Paulo, Brazil. Currently, there are a total of 12 YiwuSelection overseas exhibition halls, with more than 500 merchants organized to participate inoverseas trade fairs, and over 10,000 SKUs of Yiwu small commodities entering Yiwu Selectionoverseas exhibition halls.
4. The momentum of Yiwu Fair overseas exhibitions was gradually rising: 6 Yiwu Fairoverseas exhibitions have been held in Russia, Indonesia, South Korea, and other countries,attracting more than 200 companies to participate, with a total exhibition area of over 10,000square meters.
5. Chinagoods Overseas Websites – Going Overseas Digitally: It completed the launch ofsix national websites of Spain, Saudi Arabia, and Colombia among others, and achieved thedisplay and release of 700,000 products from 32,000 merchants to overseas buyers.
During the reporting period, the Company cooperated with three well-known local e-commerce platforms, Egatee in Africa, Aucfan in Japan, and G&G Commerce in South Korea,as well as the Cairo Aviation City Special Economic Zone in Egypt, and signed strategiccooperation agreements with them, gradually implementing Yiwu Market Project.
(Figure 5. Cases of Yiwu Market Project)
II. Description of the industry of the Company during the reporting period
According to the definitions in the Guidelines for Industry Classification of Listed Companies(revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72)in “Lease and Business Service” (L).
(i) Situation of Yiwu market
As a globally renowned small commodity trading center, Yiwu International Trade City hasmaintained a leading position in the comprehensive market in China for many years due to itshuge market transaction volume and wide variety of goods. The Yiwu market has not only formeda strong industrial cluster support in the field of small commodity circulation, but also driven thedevelopment of 2.1 million small and medium-sized enterprises and employment of 32 millionindustrial workers through its influence in 233 countries and regions worldwide.
The significant characteristics of the Yiwu market can be summarized from the followingaspects:
1. Active market entities: The Yiwu market is an important practical platform for the conceptof "mass entrepreneurship and innovation". It not only drives the development of more than 20industrial clusters and 2.1 million small and medium-sized enterprises across China, but alsoattracts over 15,000 resident foreign merchants and nearly 9,000 foreign-owned entities. Thesenumbers make Yiwu an important gathering place for global merchants, known as the "WorldSupermarket". There are over 200,000 market practitioners, 75,000 operating shops, and a totalof over 1 million market entities.
2. Wide range of goods: As the world's largest small commodity distribution center, Yiwumarket gathers 26 major categories and 2.1 million types of products, forming an "ocean of smallcommodities and paradise for shoppers ". More than ten thousand new products are launchedevery day, and the quality, brand and standard of small commodities are exported to the world,becoming the representative of "China-chic trend" and "supply place for bestselling goods".
3. Innovative business scenarios: The Yiwu market is an important birthplace of innovationin trade business scenarios. The pioneering market procurement trade method (with a customssupervision method code of "1039") has driven a 6.6-fold growth in Yiwu's foreign trade exportsin the past decade and has been promoted to 39 pilot units in China. New business forms suchas import transshipment, internet celebrity live streaming, and cross-border e-commerce areconstantly emerging, forming an e-commerce ecosystem for the full industry chain. Theintegration and development of the real economy and digital economy have enabled Yiwu tocontinue to lead the new trend of global trade.
4. High-quality trade ecology: Yiwu market is the preferred place for merchants andenterprises to trade small commodities. Since the pilot of the comprehensive reform ofinternational trade, Yiwu has formed multiple national level open platforms, including the FreeTrade Zone, Comprehensive Bonded Zone, Cross-border E-commerce Comprehensive PilotZone, and Import Trade Promotion Innovation Demonstration Zone. The logistics network has
covered over 1,500 counties and cities across China and over 700 hub cities worldwide.Government, business, and life services are in line with international standards, providingcomprehensive "customs, taxation, currency exchange, transportation, warehousing andfinancing" services, with continuously optimized the business environment.
The Yiwu market, as a key platform connecting domestic and international trade supplychains, occupies a core position in the global small commodity supply chain and plays a crucialrole in promoting internal circulation, enhancing external circulation, and serving the newdevelopment pattern of "dual circulation". As a leader and demonstration site of national marketprocurement trade method, Yiwu has maintained high-speed growth for 8 consecutive years,effectively stimulating the vitality of market entities and further improving the level of tradefacilitation.In 2023, the total import and export value of Yiwu City reached RMB 566.05 billion, up 18.2%YoY. Among them, exports exceeded the RMB 500 billion mark for the first time, reaching RMB
500.57 billion, a YoY increase of 16.0%, setting a record high; the import value was RMB 65.48billion, a YoY increase of 38.8%. Yiwu continuously gathers new momentum in foreign trade byexploring emerging markets, building high-level open platforms, and cultivating andstrengthening advantageous industries. In terms of trade regions, in 2023, the combined importand export values of Yiwu with Africa and Latin America was RMB 104.90 billion and RMB 89.76billion, respectively, with YoY increases of 24.9% and 25.4%, respectively. The import and exportvalues of Yiwu with India and Saudi Arabia were RMB 30.42 billion and RMB 14.13 billion,respectively, with YoY increases of 24.7% and 38.4%, respectively. In the same period, the totalimport and export value of Yiwu with the countries under the "Belt and Road" initiative reachedRMB 349.71 billion, up 19.5% YoY, accounting for 61.8% of the total import and export value ofYiwu City in the same period, and the contribution rate to the import and export growth of YiwuCity reached 11.9 percentage points.
In 2023, Yiwu City achieved an export value of RMB 388.37 billion through marketprocurement trade, a YoY increase of 19.0%, accounting for 77.6% of Yiwu City's total exportvalue. The Company integrates market resources through digital means, connects various linksin the supply chain, improves the efficiency of commodity circulation, and promotes the iterativeupgrade of market procurement trade method to Version 2.0. of market procurement trademethod has become the main force driving the growth of Yiwu's exports. In terms of regionaltrade, Southeast Asia, the Middle East and Latin America continue to occupy a high marketshare in the trade with Yiwu. Countries in the "Belt and Road" initiative and the RCEP regioncontinue to bring new opportunities to the Yiwu market. “AI Going Overseas” and “RMB GoingOverseas” have become new highlights of the Yiwu market.
During the reporting period, the Yiwu market showed strong vitality. The total number ofmarket operating entities reached 1.0546 million, an increase of 17.4%, with a newestablishment of 258,000 entities, accounting for one seventh of that of Zhejiang Province. The
total number of E-commerce entities exceeded 600,000, accounting for one-third of that ofZhejiang Province. The daily average customer flow of the International Trade City exceeded200,000, and the number of foreign resident merchants in Yiwu increased to 21,000. More than400,000 people came to Yiwu for the first time, and the number of college students who cameto Yiwu for the first time reached 46,500, both reaching record highs.In addition, the "direct loading upon arrival" mode launched by Yiwu-Ningbo-Zhoushan Sea-railway Combined Transportation allows enterprises to flexibly arrange the loading and deliveryof goods from the warehouse area based on their own production plans and dock appointments,following the process of "early declaration, release upon arrival, and direct loading upon arrival,"greatly improving the clearance efficiency. The express delivery business volume reached 10.58billion pieces, a YoY increase of 13.8%, accounting for one twelfth of the total in China.
III. Description of the business of the Company during the reporting period
(i) Main business of the CompanyThe Company is committed to building a shared trade service platform for small andmedium-sized enterprises in China, with a strategic positioning of a "world-class internationaltrade comprehensive service provider", continuously enriching and improving the three majorecosystems: commodity display and trading ecosystem, supporting services ecosystem, andtrade services ecosystem, in order to reduce trade costs, shorten trade chains, improve tradeefficiency, continuously create value for the circulation of small commodities, strengthen andconsolidate the advantageous position of China's daily consumer goods supply chain in globaltrade, and serve the new development pattern of domestic-international dual circulation.The commodity display and trading ecosystem includes on-site market operation and self-operated trade product sales, supporting service ecosystem includes exhibition and hotel sectors,and trade service ecosystem includes Chinagoods online service platform, warehousing logisticsand payment, credit reporting, factoring and other businesses.
(ii) The main business model of the Company
1. Commodity display and trading ecosystem
(1) Market operation
The market operation business is mainly operated and managed by the subordinate marketoperation companies of the Company. The main business revenue of the market operationsector is mainly the revenue from shop usage fees, which refer to the fees charged by theCompany for providing shop leasing and operation services to merchants.The Company adopts a shop rental model, where the ownership of the shop belongs to theCompany, and merchants only have the right to use the shop during the contract period, whileenjoying the market operation services provided by the Company. The Company signs a contractwith the merchant to clearly specify the usage period, usage fee, and business purpose of theshop. The merchant shall not change the agreed business purpose, and shall not sublet or
transfer without the consent of the Company. Generally, the payment methods of usage fee areone-time payment or installment payment according to the contract terms.In 2023, the Company restructured the rental price system for shops, implementdifferentiated pricing based on industry prosperity and other indicators, and guide the healthydevelopment of the industry. At present, the markets operated by the Company include the firstto fifth district markets, the import market, the first district eastern expansion and second districteast market, the Huangyuan market, and the international production materials market of theInternational Trade City.
(2) Self-operated trade
ICMALL is the initials of International Commodity Mall, which is a subsidiary of the well-known Chinese trademark "Yiwu China Small Commodities City". "爱喜猫" is the Chinesetransliteration of ICMALL. With the brand vision of "discovering the best products in the world",ICMALL combines over 20,000 high-quality products from imported goods and trendy domesticproducts, covering six categories: home life, beauty and skincare, mother and baby products,snacks and beverages, entertainment and cultural creativity, and toy digital. ICMALL strives tocreate a super supply chain channel brand in new fashion, new consumption, and newexperience application scenarios.As a self-owned brand that focuses on the creative development of trendy domesticproducts, "Yiwu Good Products and Good Brands" provides empowering services for theimprovement and upgrading of small commodities in Yiwu and even across China through theentire chain of product development and design, production and manufacturing, quality and price,marketing planning, after-sales service, and other aspects. In the future, the brand will strive tocreate a good products brand standardized output system with good prices, quality, and service.
The Company enters the upstream and downstream of market trade through self-operatedtrade, fully leveraging its platform and brand advantages, linking trade with the market andnurturing the market, and forming a virtuous and orderly cycle.
2. Supporting services ecosystem
(1) Exhibition
The Company's exhibition sector has developed into a professional exhibition enterprisewith one-stop service that integrates domestic exhibition organization, overseas exhibition,exhibition hall management, and exhibition supporting services. The exhibition section mainlyundertakes exhibition projects such as the China Yiwu International Commodities (Standards)Fair (UFI), China Yiwu Imported Commodities Fair (UFI), China Yiwu International ForestProducts Fair (UFI), and self-operated projects such as overseas exhibitions (Korean ImportGoods Exhibition, China Consumer Goods (Russia) Brand Exhibition, Benin (West Africa) ChinaCommodity Exhibition, etc.), And engaged in exhibition hall operation, development, leasing andother exhibition industry chain services. The Company also undertakes the operation andmanagement of Yiwu International Expo Center venues.
(2) Hotels
The hotel service business is mainly operated and managed by the Company's subsidiaryZhejiang Yandoo Hotel Management Company. There are currently 7 star-rated hotels, 1 high-end homestay, and two catering brands, Fingertip Canteen and Yandoo Cafe. The Company'shotels mainly provide comprehensive services such as accommodation, catering, leisure andentertainment, and conferences. The hotel's main revenue includes room sales, catering sales,commodity sales, and venue leasing. Sales of guest rooms and catering mainly rely on channelssuch as contractual clients, conferences, wedding banquets and recommendation by operatorsof online booking platforms.
3. Trade services ecosystem
(1) Online service platform
The Yiwu China Commodities City platform (referred to as the "Chinagoods platform") is aB2B digital trade comprehensive service platform that relies on the Company's 75,000 physicalshop resources in the market, serving 2.1 million small and medium-sized enterprises in theupstream and downstream of the industrial chain. It is driven by trade data integration andconnects with the needs of both supply and demand sides. The current revenue model of theplatform is to collect service fees by providing basic services and value-added services formembers, digital advertising business services, digital services for financial institutions, andfourth-party services.
(2) Warehousing and logistics
The Company's warehousing sector is led by warehousing, strengthening the servicecapacity of Yiwu freight warehouses, regional warehouses, and overseas warehouses, anddeeply entering various links of the trade chain. At present, there are three parks: ChinagoodsShared Cloud Warehouse, Houzhai Warehouse Park, and Huanqiu Yida Supply Chain IndustrialPark. Chinagoods Shared Cloud Warehouse is market-oriented and uses digital means to forma fully visible warehouse system. It combines public warehouses, express package distribution,and international consolidation to provide convenient warehousing services for market operators,domestic and foreign buyers, logistics and express delivery companies, as well as freightforwarders and foreign trade companies. Houzhai Warehouse Park and Huanqiu Yida SupplyChain Industrial Park are based on warehousing systems, providing efficient, convenient, andthree-dimensional warehousing service systems for market operators.
(3) Payment, credit reporting, factoring and other businesses
The Company's "Yiwu Pay" is a licensed third-party payment institution supervised by thePeople's Bank of China, providing convenient and secure electronic payment solutions formerchants through internet payment technology. Yiwu Pay was established in 2012. With itsprofessional global payment service capabilities, financial compliance capabilities, and securityrisk control capabilities, Yiwu Pay provides one-stop cross-border payment solutions fordomestic and foreign customers, enabling them to receive payments in compliance, settle
foreign exchange easily, improve fund utilization efficiency, and ensure safe receipt of funds.The Company’s business covers various scenarios such as online and on-site B2B payments,cross-border payments, etc. Domestic payment business: As a licensed payment institution,"Yiwu Pay" links major domestic banking institutions through clearing organizations such asUnionPay and NetsUnion Clearing Corporation, providing merchants with collection servicessuch as bank card fast payment, QR code scanning payment, wallet payment, and e-CNYpayment, and obtains payment fee. Cross-border payment business: "Yiwu Pay" provides one-stop cross-border fund services such as global collection and payment, foreign exchangemanagement, etc. for import and export enterprises, and obtains cross-border payment fee.Payment service business: "Yiwu Pay" collaborates with the credit consulting company, banksand other institutions to provide merchants with a financing credit model based on payment dataas the underlying layer, and the credit reporting company uniformly encapsulates and outputs itto financial institutions such as banks, providing financing services and obtains correspondingservice fees.The credit consulting company was established in July 2014, collaborating with governmentdepartments to promote the construction of the city's social credit system. It has established adata system centered on public data, commercial data, and e-commerce data. By constructingprecise enterprise portraits, it provides technical support in credit verification, joint rewards andpunishments, inclusive finance, and other fields of government and financial institutions, andempowers trade ecological value with data elements. Currently, it covers 1.08 million legalentities, with a total of over 164 million pieces of data. Through the enterprise credit informationquery platform, the Credit Reporting Company provides financial institutions with enterprisecredit information query services and carries out data management for inclusive finance of banks.Currently, there are more than 30,000 credit subjects, with a total credit amount of RMB 9.93billion. The credit consulting company charges service fees through technology development,system interface docking, and data support based on inclusive finance for banking and insuranceinstitutions.Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. (referred to as"China Commodities City Factoring") was established in January 2022 and is a local financialorganization approved by the Zhejiang Provincial Local Financial Supervision and AdministrationBureau. China Commodities City Factoring is mainly engaged in trade financing, accountsreceivable settlement, management and collection, customer credit investigation and evaluation,and non-commercial bad debt guarantee through the transfer of accounts receivable. ChinaCommodities City Factoring mainly serves the merchants of Yiwu International Trade City, andthe main income comes from interests and handling fees for factorage financing. After theexpansion of business scale in the later stage, China Commodities City Factoring can cooperatewith banks and other funding parties to obtain service fees.
3. Chronicles of the 30th anniversary of the Company's establishment
| No. | Time | Key events |
| 1 | September 5, 1982 | Opening of Yiwu Huqingmen Small Commodities Department Store Market |
| 2 | December 6, 1984 | Opening of Xinma Road Yiwu Small Commodities Market |
| 3 | September 1986 | Opening of Yiwu Small Commodities Market on Chengzhong Road |
| 4 | February 1992 | Opening of Huangyuan Market Phase I |
| 5 | August 3, 1992 | With the approval of the State Administration for Industry and Commerce, Yiwu Small Commodities Market was officially renamed as the "China Commodities City", Yiwu City, Zhejiang Province |
| 6 | October 28, 1994 | Opening of Huangyuan Market Phase II |
| 7 | May 18, 1995 | Opening of the First China Commodities City Famous New Small Commodities Fair |
| 8 | 1995 | The train named "China Commodities City" departed |
| 9 | August 1, 1995 | Yiwu China Commodities City Chamber of Commerce was established (registered and filed with the Civil Affairs Bureau in August 2008) |
| 10 | November 29, 1995 | Opening of Binwang Market |
| 11 | 1996 | The China Commodities City Famous New Small Commodities Fair was officially renamed as the China Yiwu Commodities Fair |
| 12 | October 1, 1998 | Yiwu "China Commodities City" obtained the right of self-operated import and export, which is one of the first professional markets in Zhejiang Province to obtain the right of self-operate import and export |
| 13 | October 1, 2002 | The China Yiwu Commodities Fair was upgraded to an international exhibition and officially renamed as the China Yiwu International Commodities Fair |
| 14 | October 22, 2002 | Opening of the First District of Yiwu International Trade City |
| 15 | October 22, 2002 | Yiwu China Commodities City was awarded the title of "Market valuing quality and keeping promises" by the General Administration of Quality Supervision, Inspection and Quarantine of China |
| 16 | October 22, 2004 | Opening of the Second District of Yiwu International Trade City |
| 17 | 2005 | The Yiwu market is praised by authoritative institutions such as the United Nations, the World Bank, and Morgan Stanley as the "world's largest wholesale market for small commodities" |
| 18 | August 25, 2005 | The United Nations Refugee Agency's Yiwu Procurement Information Center settled in Yiwu International Trade City |
| 19 | October 22, 2005 | Opening of the Third District of Yiwu International Trade City |
| 20 | December 22, 2005 | Yiwu International Trade City was awarded China's first "National AAAA-level Shopping Tourism Area" by the National Tourism Administration |
| No. | Time | Key events |
| 21 | May 26, 2006 | The Yiwu Procurement Information Center of the Supply Department of Foreign Missions of the Ministry of Foreign Affairs unveiled its plaque |
| 22 | September 2006 | Yiwu China Commodities City was awarded the first honorary title of "Contract Abiding and Creditworthy Unit" by the State Administration for Industry and Commerce of China |
| 23 | October 22, 2006 | The Yiwu China Small Commodities Index was officially released |
| 24 | February 2008 | Yiwu China Commodities City was awarded the honorary title of "National Market Credit Classified Supervision Demonstration Market" by the State Administration for Industry and Commerce |
| 25 | October 21, 2008 | Opening of the Fourth District of Yiwu International Trade City |
| 26 | November 1, 2008 | The Ministry of Commerce issued and implemented industry standards for the classification and coding of small commodities |
| 27 | May 5, 2011 | Opening of the Fifth District of Yiwu International Trade City |
| 28 | May 5, 2011 | Yiwu Imported Commodities Museum was opened, which was renamed "Yiwu China Imported Commodities City" on August 30, 2017 |
| 29 | May 5, 2011 | Opening of Huangyuan Clothing Market |
| 30 | November 19, 2013 | Opening of the International Production Materials Market |
| 31 | November 20, 2014 | The trademarks of "Yiwu China Commodities City” and its picture were officially recognized as well-known trademarks by the State Administration for Industry and Commerce |
| 32 | July 6, 2015 | China Commodities City · Online Commerce Service Area was approved as a "National E-commerce Demonstration Base" |
| 33 | March 24, 2016 | The Eastern Expansion Market of the First District of Yiwu International Trade City was officially opened |
| 34 | September 28, 2016 | Opening of Haicheng Yiwu China Commodities City |
| 35 | August 2019 | The China Yiwu International Commodities Fair was renamed as the China Yiwu International Commodities (Standards) Fair |
| 36 | February 18, 2020 | Yiwu market was the first to restart operation in China |
| 37 | June 30, 2022 | Opening of Dubai Yiwu China Commodities City |
| 38 | November 25, 2022 | The construction of the Global Digital Trade Center was officially started |
| 39 | 17-MAR-2023 | Opening of Yiwu International Trade City Second District East New Energy Product Market |
| 40 | September 20, 2023 | Xi Jinping, General Secretary of the CPC Central Committee, President of the State and Chairman of the Central Military Commission visited Yiwu International Trade City for investigation. |
4. Honors obtained as of the 30th anniversary of the Company's establishment
| No. | Name | Awarded by | Photos | Level |
| 1 | First in the Top Ten Comprehensive Trading Markets for Industrial Products in China | National Bureau of Statistics, Market Operation Department of the Ministry of Commerce National Business Federation of the Department of Trade and Economic Statistics | National level | |
| 2 | Key Integrated Domestic and Foreign Trade Commodity Markets Cultivated | Ministry of Commerce of the People's Republic of China | National level | |
| 3 | National Advanced Grassroots Party Organizations | Central Committee of the CPC | National level | |
| 4 | China Import Promotion Center | China Council for the Promotion of International Trade China International Chamber of Commerce | National level | |
| 5 | National Advanced Collective for Comprehensive Governance of Social Security | Ministry of Human Resources and Social Security Central Commission for Comprehensive Control of Law and Order | National level | |
| 6 | Contract Abiding and Trustworthy Unit | State Administration for Industry and Commerce of the People's Republic of China | National level | |
| 7 | Valuing Quality and Keeping Promise | General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China | National level | |
| 8 | National Credit Supervision Demonstration Market | State Administration for Industry and Commerce of the People's Republic of China | National level | |
| 9 | Zhejiang Province Foreign Trade Innovation and Development Demonstration Unit | Zhejiang Provincial Department of Commerce | Provincial level | |
| 10 | National Advanced Employment Enterprises | State Council of the PRC | National level | |
| 11 | National May Fourth Red Flag Youth League Committee | Central Committee of the Communist Youth League | National level |
| No. | Name | Awarded by | Photos | Level |
| 12 | Top Ten Digital Leaders in China's Commodity Market | China Academy of Social Sciences Evaluation and Research Organizing Committee of China Commodity Market Summit | National level | |
| 13 | Top 100 Chinese Commodity Markets | China Academy of Social Sciences Evaluation and Research Organizing Committee of China Commodity Market Summit | National level | |
| 14 | Top Ten Transformation Demonstration Markets in Zhejiang Province | Zhejiang Provincial Administration for Industry and Commerce Zhejiang Provincial Market Association | Provincial level | |
| 15 | Employee Library | All-China Federation of Trade Unions | National level | |
| 16 | Women's Civilized Post | All-China Women's Federation | National level |
IV. Analysis of core competencies during the reporting period
√Applicable □Not applicable
1. First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing thecommodities market. During the recent forty years, the market has been upgraded five times andexpanded ten times and has been among the top comprehensive national markets with thehighest turnover, pointing to its remarkable first-mover advantages. As the largest commoditiesdistribution center in the world, the Yiwu commodities market provides more than 2.1 millionproducts, which fall in 26 categories and support one-stop purchase. The market boastsenormous resources and huge business flow, goods flow, cash flow and information flow.
2. Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-knowntrademark among the national commodities trading markets. The Company has taken multiplemeasures to give play to the brand of “Yiwu China Commodities City” and is committed toimproving its influence and leading role in the industry. Its brand advantages and influence havekept enhancing.
3. Supporting services advantages
The People’s Government of Yiwu has been providing policy support for the developmentof the market for years, and the auxiliary industries are developing rapidly in Yiwu.
(1) Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logisticsservice. The logistics network has full coverage in Yiwu. A large number of large-sizedinternational and domestic express delivery and logistics companies have regional distributioncenters in Yiwu, and a world-oriented goods transport and distribution network has beenestablished. Yiwu has been listed among the “commerce and trade-oriented national logisticshubs” by the National Development and Reform Commission and the Ministry of Transport.According to the 2023 operation status of the postal industry published by the National PostalAdministration, the express delivery business volume of Jinhua (Yiwu) in 2023 was 13.694 billionpieces, ranking first in China.
(2) Industry support
During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centeredmanufacturing industry cluster has been developing fast, an commodities industrial belt that iscentered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing,Ningbo, Wenzhou and Taizhou with an area of nearly 10,000 sq. km has been established, anda benign mechanism under which the Yiwu wholesales market and the peripheral industry clusterdevelop together has been formed.
(3) Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition business divisionsuch as China Yiwu International Commodities Fair, China Yiwu International Forest ProductsFair, China Yiwu International Imported Commodities Fair and China Yiwu Hardware andElectrical Expo support and cultivate vertical exhibition in multiple industries such as stationeryand textiles, have developed multiple professional and international exhibition brands, and areimportant national platforms for the China Commodities City to lead industry development,develop the city economy and maintain the clusters of traders and commodities.
4. Advantages of diversified businesses
The Company has strengthened its presence in the related industries, made efforts onfinancial investment, kept developing the exhibition business, created a new e-commerce model,developed the hotel business and also run international trade, modern logistics, advertisinginformation, shopping and tourism businesses. It has created a group structure and profit-makingmodel of shared and interactive development of market resources.
5. Management advantages
In terms of personnel, management and technology, excellent operation and managementability is one of the core competences of the Company as a professional market operatingcompany. The Company has developed a series of perfect management systems for marketoperation and management, accumulated rich experience in operation and management, andhas cultivated a professional management team with reasonable knowledge and expertisestructures and strategic development insights.
6. Advantages of online and offline platform integration
The Company’s international trade city is the global leading commodity market. TheCompany’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000off-line shops, through integration of online and offline services, serves 2.1 million small, mediumand micro enterprises in the upper reaches of the industry chain. With trade data integration asthe core driver, it meets the needs of both supply and demand parties in manufacturing, displaytransactions, warehousing and logistics, financial credit, market management and other links.
7. Advantage of international logistics
The Company's Zhijie Yuangang international logistics business, establishes a logisticsplatform to replace the multi-layer freight forwarder system, thus shortening the level of freightforwarder distribution, and improving logistics efficiency. In contrast, the traditional foreign tradefreight forwarders are divided into multiple levels, the logistics and transportation services arenot standardized, and the service prices vary widely and are usually not the lowest price.
V. Operating status during the reporting periodDuring the reporting period, the main operating status of the Company are as follows:
(i) Analysis of main business
1. Analysis of changes in related accounting subjects of income statement and cash
flow statement
Unit: RMB
| Subject | Amount in the current report period | Amount in the previous year | YoY change (%) |
| Operating revenue | 11,299,686,665.89 | 7,619,693,742.60 | 48.30 |
| Operating cost | 8,305,741,779.40 | 6,452,909,829.96 | 28.71 |
| Sales expenses | 240,304,021.01 | 197,679,981.09 | 21.56 |
| Administrative expenses | 559,531,630.75 | 529,466,270.71 | 5.68 |
| Financial expenses | 125,011,959.33 | 149,148,889.80 | -16.18 |
| R&D expenses | 21,748,987.30 | 17,377,161.88 | 25.16 |
| Net cash flow from operating activities | 1,845,059,849.92 | 1,400,090,713.77 | 31.78 |
| Net cash flow from investing activities | -1,374,994,819.34 | -2,362,698,917.70 | NA |
| Net cash flow from financing activities | 460,485,131.00 | -1,057,216,958.11 | NA |
Reasons for the change in operating revenue: Operating revenue increased by 48.30% YoY,mainly due to the opening of the Second District East New Energy Product Market and rentreduction in the previous year, as well as the YoY expansion of product sales scale.Reasons for the change in net cash flow generated from operating activities: that is mainlydue to the YoY increase of RMB 665 million in net cash received from sales of goods andprovision of services, and a decrease of RMB 278 million in tax refunds received.
Details of material changes to the business types, the components or sources of profits of theCompany in this reporting period
□Applicable √Not applicable
2. Revenue and cost analysis
√Applicable □Not applicable
The Company's operating revenue for 2023 was RMB 11.3 billion, an increase of RMB 3.68billion YoY, and operating costs were RMB 8.306 billion, an increase of RMB 1.853 billion YoY;Among them, the main business revenue was RMB 10.935 billion, up 49.25% YoY, and the mainbusiness cost was RMB 8.163 billion, up 28.84% YoY.
(1). Main business by industry, product, region, and sales model
Unit: RMB 10,000
| Main business by industry | ||||||
| By industry | Operating revenue | Operating cost | Gross profit margin (%) | Change in operating revenue YoY (%) | Change in operating cost YoY (%) | Increase or decrease in gross profit margin YoY |
| Market operation | 307,434.79 | 86,612.08 | 71.83 | 81.16 | -9.97 | Up 28.52 ppt |
| Trade services | 60,245.91 | 18,233.13 | 69.74 | 43.37 | -17.73 | Up 22.48 ppt |
| Supporting services | 46,662.10 | 35,658.56 | 23.58 | 79.30 | 64.50 | Up 6.88 ppt |
| Sales of goods | 679,156.67 | 675,783.05 | 0.50 | 37.22 | 36.93 | Up 0.22 ppt |
| Sub-total | 1,093,499.47 | 816,286.82 | 25.35 | 49.25 | 28.84 | Up 11.82 ppt |
Description of main business by industry
1. The market operating revenue increased by 81.16% YoY, mainly due to the newlyadded revenue from the Second District East New Energy Product Market and the impact ofthe rent reduction policy implemented in the previous year.
2. The trade service revenue increased by 43.37% YoY, mainly due to the YoY increase ininformation service revenue from the Chinagoods platform and other platforms in this period.
3. The revenue and cost of supporting services increased by 79.30% YoY and 64.50%YoY, respectively, mainly due to the increase in hotel occupancy rate and the expansion ofexhibition business scale in this period.
4. The sales revenue and cost of goods increased by 37.22% YoY and 36.93% YoY,respectively, mainly due to the significant YoY growth in the sales business of goods in thisperiod.
(2). Table of production and sales analysis
□Applicable √Not applicable
(3). The performance of major purchase contracts and major sales contracts
□Applicable √Not applicable
(4). Cost Analysis Table
Unit: RMB 10,000
| Situation by industry | |||||||
| By industry | Cost components | Amount in the current period | Proportion in the total cost in the current period (%) | Amount in the previous year | Proportion in the total cost in the previous year (%) | YoY change (%) | Description |
| Market operation | Depreciation and amortization | 45,621.19 | 5.59 | 43,737.99 | 6.90 | 4.31 | |
| Market operation | Wages and benefits | 6,381.71 | 0.78 | 7,693.99 | 1.21 | -17.06 | |
| Market operation | Other costs | 34,609.18 | 4.24 | 44,775.42 | 7.07 | -22.70 | |
| Trade services | Property management cost | 3,350.82 | 0.41 | 3,239.75 | 0.51 | 3.43 | |
| Trade services | Network transformation services and others | 14,882.31 | 1.82 | 18,922.95 | 2.99 | -21.35 | |
| Supporting services | Depreciation and amortization | 9,924.40 | 1.22 | 5,186.80 | 0.82 | 91.34 | New provision for assets impairment |
| Supporting services | Cost of food and beverage raw materials | 8,800.84 | 1.08 | 5,539.34 | 0.87 | 58.88 | Expansion of catering revenue scale |
| Supporting services | Wages and benefits | 4,714.77 | 0.58 | 3,154.74 | 0.50 | 49.45 | Increase in personnel |
| Supporting services | Material and fuel consumption | 2,063.33 | 0.25 | 1,116.72 | 0.18 | 84.77 | Expansion of catering revenue scale |
| Supporting services | Exhibition and advertising cost | 5,318.13 | 0.65 | 4,486.46 | 0.71 | 18.54 | |
| Supporting services | Other costs | 4,837.09 | 0.59 | 2,193.16 | 0.35 | 120.55 | Mainly due to the expansion of exhibition scale |
| Sales of goods | Cost of product sales | 675,783.05 | 82.79 | 493,522.41 | 77.89 | 36.93 | Mainly due to the increase in product sales |
| Total | 816,286.82 | 100.00 | 633,569.73 | 100.00 | 28.84 | ||
Explanation on cost analysis and other informationNo
(5). Changes in consolidation scope due to the changes in main subsidiaries' shareownership during the report period
□Applicable √Not applicable
(6). Major changes or adjustment in the Company's business, products or services
□Applicable √Not applicable
(7). Main sales customers and suppliers
A. Main sales customers of the Company
□Applicable √Not applicable
Case in which the sales to a single customer accounted for over 50% of the total sales, newcustomers were added to the list of top 5 customers or the Company relied heavily on a fewcustomers during the report period
□Applicable √Not applicable
B. Main suppliers of the Company
□Applicable √Not applicable
Case in which the purchase amount for a single supplier accounted for over 50% of the totalpurchase amount, new suppliers were added to the list of top 5 suppliers or the Companyrelied heavily on a few suppliers during the report period
□Applicable √Not applicable
Other statementsNo
3. Costs
√Applicable □Not applicable
Unit: RMB 10,000
| Item | 2023 | 2022 | YoY change amount | Change in % | Explanation on changes |
| Sales expenses | 24,030.40 | 19,768.00 | 4,262.40 | 21.56 | |
| Administrative expenses | 55,953.16 | 52,946.63 | 3,006.53 | 5.68 | |
| R&D expenses | 2,174.90 | 1,737.72 | 437.18 | 25.16 | |
| Financial expenses | 12,501.20 | 14,914.89 | -2,413.69 | -16.18 | |
| Income tax expenses | 52,666.89 | 4,620.57 | 48,046.32 | 1,039.84 | Due to an increase in taxable income |
Unit: RMB 10,000
| Item | 2023 | 2022 | YoY change amount | Change in % |
| Human resources expenditure | 34,011.66 | 31,721.94 | 2,289.72 | 7.22 |
| Advertising expenses | 2,693.85 | 3,174.30 | -480.45 | -15.14 |
| Security and insurance costs | 4,733.94 | 3,384.43 | 1,349.51 | 39.87 |
| R&D expenses | 2,174.90 | 1,737.72 | 437.18 | 25.16 |
| Depreciation and amortization | 14,020.84 | 11,406.51 | 2,614.33 | 22.92 |
| Promotion and investment promotion | 15,535.01 | 9,221.94 | 6,313.07 | 68.46 |
| Intermediary expenses | 1,959.67 | 1,913.78 | 45.89 | 2.40 |
| Office expenses | 1,748.95 | 1,411.89 | 337.06 | 23.87 |
| Water, electricity and fuel consumption | 716.87 | 695.33 | 21.54 | 3.10 |
| Start-up fee | - | 4,089.58 | -4,089.58 | -100.00 |
| Other expenses | 4,562.77 | 5,694.93 | -1,132.16 | -19.88 |
| Subtotal of management, R&D and sales expenses | 82,158.46 | 74,452.35 | 7,706.11 | 10.35 |
4. R&D Investment
(1) Table of R&D investment status
√Applicable □Not applicable
Unit: RMB 10,000
| Expensed R&D investment in this period | 2,174.90 |
| Capitalized R&D investment in this period | 2,690.93 |
| Total R&D investment | 4,865.83 |
| Total R&D investment as a percentage of operating income (%) | 0.43 |
| Proportion of capitalization of R&D investment (%) | 55.30 |
(2) Table of R&D personnel status
√Applicable □Not applicable
| Number of R&D personnel | 160 |
| Number of R&D personnel as a percentage of the Company’s total personnel number (%) | 4.62 |
| The education level of R&D personnel | |
| Education level | People at this education level |
| Master's degree | 9 |
| Bachelor's degree | 110 |
| Junior college education | 41 |
| Age of R&D personnel | |
| Age range | People in this age range |
| Below 30 (30 excluded) | 54 |
| 30-40 (30 included, 40 excluded) | 90 |
| 40-50 (40 included, 50 excluded) | 15 |
| 50-60 (50 included, 60 excluded) | 1 |
(3) Reasons for change
□Applicable √Not applicable
(4) Reasons for major changes in the composition of the R&D personnel and theirinfuence on the Company's future development
□Applicable √Not applicable
5. Cash flow
√Applicable □Not applicable
Unit: RMB 10,000
| Item | 2023 | 2022 | YoY change |
| Net cash flow (used)/generated from operating activities | 184,505.98 | 140,009.07 | 44,496.91 |
| Net cash flow (used)/generated from investing activities | -137,499.48 | -236,269.89 | 98,770.41 |
| Net cash flow (used)/generated from financing activities | 46,048.51 | -105,721.70 | 151,770.21 |
| (Decrease)/increase in cash and cash equivalents | 92,897.80 | -202,526.74 | 295,424.54 |
1. The net cash flow generated from operating activities increased by RMB 445 million YoY,mainly due to a YoY increase of RMB 665 million in net cash received and paid for the sale ofgoods and provision of services in this period, and a YoY decrease of RMB 278 million in taxrefunds received.
2. The net cash flow generated from investment activities increased by RMB 988 millionYoY, mainly due to a YoY decrease of RMB 488 million in net outflow of investments in thisperiod, an increase of RMB 187 million in net cash received from the disposal of fixed assets,intangible assets, and other long-term assets, and a YoY decrease of RMB 313 million in netcash paid by subsidiaries.
3. The net cash flow generated from financing activities increased by RMB 1.518 billion YoY,mainly due to a YoY increase of RMB 1.453 billion in net inflow of financing in this period.
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Assets and liabilities
Unit: RMB 10,000
| Item | Amount at the end of the current period | % of total assets at the end of the current period | Closing balance in the prior corresponding period | Closing balance as a percentage of total assets in the prior corresponding period (%) | Percentage change of the closing balance of the current period compared with the prior corresponding period (%) | Reasons for change |
| Cash and cash equivalents | 292,273.53 | 8.07 | 199,129.90 | 6.20 | 46.78 | |
| Held-for-trading financial assets | 1,513.09 | 0.04 | 6,233.10 | 0.19 | -75.72 | |
| Accounts receivable | 59,285.78 | 1.64 | 21,075.07 | 0.66 | 181.31 | Mainly due to the expansion of factoring business scale in this period and the increase in factored accounts receivable |
| Prepayments | 98,606.26 | 2.72 | 60,605.70 | 1.89 | 62.70 | |
| Other receivables | 11,527.94 | 0.32 | 41,939.81 | 1.31 | -72.51 | |
| Property investment | 414,420.94 | 11.44 | 285,164.32 | 8.88 | 45.33 | |
| Construction in progress | 395,595.92 | 10.92 | 286,006.48 | 8.91 | 38.32 | |
| Development expenses | 1,864.84 | 0.05 | 466.10 | 0.01 | 300.09 | Due to an increase in research and development investment in this period |
| Short-term borrowings | 161,980.49 | 4.47 | 105,928.74 | 3.30 | 52.91 | |
| Advances from customers | 60,236.44 | 1.66 | 88,599.33 | 2.76 | -32.01 | |
| Tax payable | 34,818.52 | 0.96 | 21,499.84 | 0.67 | 61.95 | |
| Other payables | 186,272.07 | 5.14 | 132,559.61 | 4.13 | 40.52 | |
| Non-current liabilities due within one year | 17,914.08 | 0.49 | 8,685.23 | 0.27 | 106.26 | Transfer-in of long-term interest-bearing liabilities due within one year |
| Long-term | 86,279.89 | 2.38 | 40,450.00 | 1.26 | 113.30 |
| borrowings | ||||||
| Estimated liabilities | - | - | 11,062.03 | 0.34 | -100.00 | Offsetting estimated liabilities for provision for letter of credit litigation |
| Deferred income | 16,043.27 | 0.44 | 10,358.21 | 0.32 | 54.88 |
Other statementsNo
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them, overseas assets were RMB 473 million, accounting for 1.31% of the total assets.
(2) Explanation of the high proportion of offshore assets
□Applicable √Not applicable
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
| Item | 2023 | 2022 |
| Cash and cash equivalents | 12,556,381.42 | 10,098,029.66 |
| Inventory | 8,925,585.77 | - |
| Long-term equity investment | 102,918,559.00 | 102,918,559.00 |
| Other non-current financial assets | 631,520,588.85 | 621,447,424.37 |
| Other current assets | 313,869,496.74 | 367,484,914.87 |
| Total | 1,069,790,611.78 | 1,101,948,927.90 |
The situation of restricted assets can be found in Financial Report Note VII. 31. RestrictedAssets of Ownership or Use Rights in Section IX.
4. Other statements
□Applicable √Not applicable
(iv) Analysis of business information of industry
√Applicable □Not applicable
For details, please refer to "II. The situation of the industry of the Company" in this section
(v) Analysis of investmentsOverview of external equity investment
√Applicable □Not applicable
As of the end of December 2023, the external investment amount was RMB 9.0163777 billion (including trading financial assets of RMB 15.1309million, long-term equity investment of RMB 7.0227795 billion, other equity instrument investment of RMB 556.8974 million, and other non-currentfinancial assets of RMB 1.4215699 billion), an increase of RMB 921.0654 million, or 11.38%, from RMB 8.0953123 billion (including trading financialassets of RMB 62.331 million, long-term equity investment of RMB 6.0334729 billion, other equity instrument investment of RMB 499.2008 million, andother non-current financial assets of RMB 1.5003076 billion) at the end of the previous year. The main changes were as follows:
i. At the end of the reporting period, trading financial assets decreased by RMB 47.201 million from the end of the previous year, due to adecrease of RMB 38.6794 million in bank wealth management during the reporting period, as well as a decrease of RMB 8.5207 million in the sale ofsome Dongfang Entrepreneurship shares and changes in fair value.
ii. At the end of the reporting period, long-term equity investment increased by RMB 989.3066 million from the end of the previous year, mainlydue to:
1. The decrease of RMB 50 million in investment costs, which was due to the recovery of RMB 50 million in investment funds from Yiwu HongyiEquity Investment Fund Partnership during the reporting period.
2. The net increase of RMB 1.039306 billion in the accrued income by equity method, ect., which was due to the accrued investment income byequity method of RMB 1.0358582 billion during the reporting period.
iii. At the end of the reporting period, other equity instrument investments increased by RMB 57.6966 million from the end of the previous year,due to changes in fair value of Shenwan Hongyuan Group Co., Ltd. during the reporting period.
iv. At the end of the reporting period, other non-current financial assets decreased by RMB 78.7377 million from the end of the previous year. Thiswas due to the recovery of RMB 40.5043 million in investment funds from Yiwu Shanyue Equity Investment Partnership (Limited Partnership) and
Beijing Yiyun Clean Technology Entrepreneurship Investment Co., Ltd. during the reporting period, as well as the income of RMB -38.2334 million fromthe disposal of other non-current financial assets and fair value change.
1. Major equity investments
□Applicable √Not applicable
2. Major non-equity investments
√Applicable □Not applicable
Unit: RMB 10,000
| Item | Project amount | Progress | Investment amount during current period | Cumulative actual investment amount . |
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | The completion and acceptance of the projects in the southern and northern zones of the new import market were completed. | 71,692.37 | 362,262.42 |
| Logistics Park S2 | 108,000.00 | The main body was basically completed and met the conditions for completion acceptance. | 34,523.24 | 58,057.14 |
| Logistics Park S3 | 132,000.00 | The main body was basically completed and met the conditions for completion acceptance. | 34,282.25 | 64,682.30 |
| Yiwu International Digital Logistics Market | 113,600.00 | 93.6% of the total project was completed, of which all individual buildings were basically completed. | 51,477.51 | 63,079.75 |
| Global Digital Free Trade Center | 832,082.00 | 1. Phase I project (hotel plot): The overall progress was 52%, with 100% of the main structure completed and about 70% of the secondary structure completed. 2. Phase II project (market, business office building): Approximately 77% of the basement structure work was completed. About 90.30% of the market lot 1 was completed; About 92.90% of the market lot 2 was completed; About 61.60% of the business office building lot 1 was completed; About 62.70% of the business office building lot 2 was completed. 3. Super high-rise building lot: In the stage of earthwork and foundation pit engineering, about 20% of the earthwork transportation was completed. | 68,140.69 | 75,328.51 |
3. Financial assets measured with fair value
√Applicable □Not applicable
Unit: RMB 10,000
| Category of assets | Opening balance | Profit and loss from changes in fair value in the current period | Cumulative fair value changes included in equity | Current purchase amount | Sale/redemption amount in current period | Other changes | Closing balance of the current period |
| Held-for-trading financial assets | 6,233.10 | 82.33 | - | - | 4,802.34 | - | 1,513.09 |
| Other equity instruments investment | 49,920.08 | - | 245.40 | - | - | 5,769.66 | 55,689.74 |
| Other non-current financial assets | 150,030.76 | -5,325.39 | - | - | 2,548.38 | - | 142,156.99 |
| Total | 206,183.94 | -5,243.06 | 245.40 | - | 7,350.72 | 5,769.66 | 199,359.82 |
Securities Investment
√Applicable □Not applicable
Unit: RMB 10,000
| Securities | Security code | Security abbreviation | Initial investment cost | Source of funds | Opening book value | Profit and loss from changes | Cumulative fair value changes | Current purchase amount | Sales amount in | Profit and loss from investment | Closing book value | Accounting item |
| in fair value in the current period | included in equity | current period | in current period | |||||||||
| Stocks | 000166 | Shenwan Hongyuan | 55,362.54 | Self-owned funds | 49,920.08 | - | 4,327.24 | - | - | 376.28 | 55,689.74 | Other equity instruments investment |
| Stocks | 600278 | Oriental Venture | 5,000.00 | Self-owned funds | 2,365.16 | 82.33 | - | - | 934.40 | 202.32 | 1,513.09 | Held-for-trading financial assets |
| Stocks | 833979 | Tiantu Investment | 15,519.21 | Self-owned funds | 4,773.97 | -1,056.78 | - | - | - | - | 3,717.19 | Other non-current financial assets |
| Total | / | / | 75,881.90 | / | 57,059.21 | -974.45 | 4,327.24 | - | 934.40 | 578.60 | 60,920.02 | / |
Explanation of securities investment
□Applicable √Not applicable
PE investment
√Applicable □Not applicable
At the end of this reporting period, the book value of private equity fund investments was RMB 1.2224834 billion, a decrease of RMB 20.054 millionfrom RMB 1242.5374 million at the end of the previous year. This was due to the recovery of RMB 40.5043 million in investment funds from YiwuShanyue Equity Investment Partnership (Limited Partnership) and Beijing Yiyun Clean Technology Entrepreneurship Investment Co., Ltd. during thereporting period, as well as RMB 20.453 million in fair value change.
Derivatives investment
□Applicable √Not applicable
4. Specific progress of major asset restructurings during the report period
□Applicable √Not applicable
(vi) Major sales of assets and equity
□Applicable √Not applicable
(vii) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB 10,000
| Company name | Business | Registered capital | Total assets | Net assets | Net profits |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Enterprise's own capital investment, asset management, investment consulting services, investment management services | 400,000.00 | 284,075.64 | 260,718.78 | -1,643.77 |
| Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | Industry investment, investment management, property service, market development and operation, market auxiliary service, real estate development, sale and lease, design, production and agency of domestic advertising, and operation and management of parking garages | 60,000.00 | 192,251.39 | -104,880.43 | -10,055.19 |
| Yiwu Shangbo (former name: Yiwu Shangbo Real Estate Co., Ltd.) | Enterprise management; property management, etc. | 30,000.00 | 118,369.76 | 50,304.78 | -2,083.50 |
| Yiwu Commodities City Gonglian Property Co., Ltd. | Real estate development and sale | 20,000.00 | 16,037.46 | 15,879.71 | 104.67 |
| Kuaijietong Payment Service Co., Ltd. | Internet payment, cross-border RMB, cross-border foreign exchange, etc. | 18,000.00 | 54,033.73 | 15,258.14 | 1,629.28 |
| Yiwu Xingchen Enterprise Management Co., Ltd. (former name: Yiwu China Commodity City Payment Network Technology Co., Ltd.) | R&D of computer and multimedia software | 15,000.00 | 266,227.72 | 12,095.86 | 37.48 |
| Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 115,346.11 | 7,536.84 | 1,739.81 |
| Yiwu China Commodities City Big Data Co., Ltd. | Internet data services; professional design services; intelligent control system integration; computer information technology development, technical consulting, technical services, technology transfer, etc. | 10,000.00 | 37,757.44 | 20,491.15 | 8,141.99 |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 16,959.28 | 6,959.06 | 100.84 |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 17,898.25 | 12,421.69 | 2,068.40 |
| Yiwu China Commodities City Property Development Co., Ltd. | Real estate development and sale | 500,000.00 | 2,092,930.84 | 652,838.40 | 28,003.14 |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting | 200,100.00 | 186,302.65 | 184,027.18 | 3,055.34 |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 2,019,224.78 | 221,079.31 | 32 923.33 |
| Yiwu Shanglv Investment Development Co., Ltd. |
Industrial investment, investment management, property services, parking lotoperation and management, commercial marketing planning, businessmanagement consulting, mall operation and management, etc.
| 80,000.00 | 131,677.69 | 92,010.95 | 7,854.06 |
| Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 134,214.36 | 70,672.83 | -5,776.39 |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | International cargo transportation agency by sea; international cargo transportation agency by air; international cargo transportation agency by land; domestic cargo transportation agency; domestic shipping agency; general cargo warehousing services, etc. | 55,556.00 | 60,758.39 | 40,309.11 | -5,030.15 |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 4,081.63 | 237,211.12 | 189,228.50 | 173,771.35 |
(viii) Structured entities controlled by the Company
□Applicable √Not applicable
VI. Discussion and Analysis of the Company's Future Development(i) Industry pattern and trends
√Applicable □Not applicable
1. AI changes business
Artificial intelligence (AI), as one of the core technologies of the Fourth Industrial Revolution,is driving a profound transformation in global production methods. International organizationssuch as the World Economic Forum unanimously believe that AI technologies will greatlyimprove production efficiency and product quality, and open up new market opportunities forenterprises. According to reports from well-known research institutions such as Gartner andMcKinsey, AI is triggering a "productivity revolution" across the world, and it is expected that theglobal AI market will exceed trillions of dollars by 2030. As an emerging productivity, AI hasshown broad market prospects and enormous development potential.
In this context, the Company has ushered in a new era with AI technology as its core. TheCompany deeply recognizes that AI is not only a symbol of technological innovation, but also akey force driving changes in business models and operational methods. Therefore, themanagement of the Company regards "exploring how AI technology can empower traditionalmarkets" as the core task of its five-year strategic plan for the future. During the reporting period,the Company actively integrated AI technology into commercial practice, driving traditionalforeign trade to actively explore the direction of AI.
(1) Preliminary results have been achieved in the exploration and practice of AI applications
① A series of products with AI empowering the digital trade ecosystem have initially formeda closed loop.
The AI Digital Lady Boss and AI Translator have successfully reduced language barriers formarket operators in foreign trade business; AI-generated images and videos provide a cost-effective solution for digitizing products; Digital human anchors and AI customer service staffenable business owners to achieve 24-7 business operations; And AI independent websiteshave opened up more trade channels. In addition, Xiaoshang AI has broken through traditionalkeyword search and information flow recommendation models through intelligent interactiveQ&A. Not only does it enhance the personalized experience of Chinagoods users, but it alsodrives the evolution of the Yiwu commercial model by deeply understanding the preferences andneeds of procurement users, promoting cost reduction and efficiency increase for businessowners, and updating business models.
② "Digital Lady Boss" brings more business display opportunities to merchants
The wave of AI technology is sweeping across various industries, and the business modelof Yiwu is also undergoing changes among "world business circles". Market merchants canseamlessly switch between different languages and communicate with foreign businesseswithout barriers in front of the camera through the multilingual "Digital Lady Boss" AI tool.Merchants can better showcase their brand store and product image through AI tools, and can
also achieve business such as customer acquisition, quotation, and order taking. At present,17,000 people have deeply experienced and used the series of products of Xiaoshang AI on theChinagoods platform of Yiwu CCC. The "Digital Lady Boss" empowered by AI has formed aseries of well-known IPs, receiving continuous attention and coverage from media outlets suchas CCTV, People's Daily Online, and Xinhua News Agency, becoming a case of new economictransformation.Through follow-up analysis and data statistics of merchants, it was found that within threemonths of using AI products, the average inquiry volume of market merchants increased by morethan 30%, and the order volume also increased by more than 15%. The exploration and practiceof AI have received positive feedback in the field of foreign trade.
③ Upgrade of Chinagoods AI Intelligent Innovation Service Platform
In October 2023, the Company released the first large model in the field of commoditytrade China and upgraded the Chinagoods AI Intelligent Innovation Service Platform. Yiwu CCChas reached strategic cooperation with institutions such as People's Daily Online, Tencent, Baidu,and Tsinghua University to jointly release big data models in the field of commerce and trade,successfully attracting numerous AI startups to join the Chinagoods AI Intelligent InnovationService Platform.Unlike most big data models in the market, complex digital trade scenarios require more AIservice providers and AI technology teams to join. The Company chooses to start from the roleof service, combining self-developed products with third-party products, deeply entering tradescenarios, helping market merchants more efficiently display their brands and products, andmore accurately carry out content marketing. At present, more than 20 AI technology companieshave integrated into the operation and development of digital trade scenarios in the Yiwu market.The Yiwu market has rich data application scenarios, specific user groups, mature businessmodels, first-class basic design, and strong computing power support, providing a fertile soil forthe implementation and application of more AI products.
(2) The construction of AI digital trade infrastructure is accelerating
① Hardware construction. In April 2023, the Company signed a cooperation agreementwith China Unicom Zhejiang Branch to plan to build and operate the "Belt and Road" internationaldata center. The project will follow the framework of "one network, three centers and twoguarantees", including the new international Internet data dedicated channel, green data center,cloud computing center and intelligent computing center, and provide operation serviceguarantee and network data security guarantee. This project aims to promote the flow andintegration of data elements, providing infrastructure support for the future development ofartificial intelligence applications in the Yiwu market.
② Software construction. On October 22, 2023, during the China Yiwu InternationalCommodities Fair, the Company announced strategic cooperation with institutions such asPeople's Daily Online, Tencent, Tsinghua University, and China Post in the fields of AI and big
data. The Company released the world's first vertical industry model in the field of commerceand trade based on Luka, and launched Version 2.0 of Chinagoods AI Intelligent InnovationService Platform. ModelBest is an enterprise incubated by the NLP laboratory of TsinghuaUniversity, and was named one of the "Top 10 Most Promising Startup" by “AI China” MachineHeart in 2022. The AI Agent series of ModelBest is based on a large voice model, achieving ahigher quality artificial intelligence interaction experience.
(3) The Company's forward-looking investments in AI applications in the field of commerceand tradeIn the future development blueprint, the Company will continue to make forward-lookinginvestments in the field of artificial intelligence, promoting innovative applications of AItechnology in the field of commerce and trade.
① With the utmost sincerity and attitude, the Company will work together with more toptechnology enterprises to explore the application scenarios of AI technology in the field ofcommerce and trade. The Company is dedicated to developing a series of revolutionary digitaltools, including AI digital human matrix, AI website building platform, AI assistant, etc., with theaim of creating agents (digital agents) with advanced capabilities such as graphic contentgeneration and deep data analysis, leading the wave of digital transformation in the field ofcommerce and trade.
② The Company will accelerate the promotion of digital infrastructure projects such as 10Gigabit networks and cross-border access networks to ensure an efficient, stable, and fastnetwork environment. Launch an AI digital customer service system to enhance user serviceexperience. And pilot the commercial language model project in the new energy industry, in orderto explore deep applications in specific industries and accumulate valuable experience.
AI technology not only improves operational efficiency and reduces costs for traditionalforeign trade, but also creates new business opportunities for market participants, promotesinnovation in business models, and AI changes business. We will always maintain sensitivity anda sense of crisis, embrace change, and strive for innovation. We will be based on the Yiwumarket and connect global suppliers and buyers through AI technology to achieve intelligentmatching and efficient circulation of trade information, contributing to the prosperity anddevelopment of global trade.
2. Data elements
In the era of digital economy, data has become a "new energy" driving businesstransformation, and the digital industry is gradually becoming a new engine for China and eventhe global economic recovery. According to the Research Report on the Development of China'sDigital Economy (2023) by the China Academy of Information and Communications Technology,the scale of China's digital economy development exceeded RMB 5 billion for the first time in2022, and it is expected that the scale of China's data trading market will reach RMB 204.6 billionby 2025.
On January 12, 2022, the State Council released the "14th Five Year Plan for theDevelopment of the Digital Economy", and on December 19, 2022, the Central Committee of theCommunist Party of China and the State Council issued the "Opinions on Building a DataInfrastructure System to Better Play the Role of Data Elements" (referred to as the "20 DataArticles"), which aimed to build a data infrastructure system from aspects such as data propertyrights, circulation and transactions, income distribution, and security governance, and proposed20 policy measures. The introduction of the "Twenty Data Articles" will fully leverage China'sadvantages in massive data scale and rich application scenarios, activate the potential of dataelements, strengthen, optimize, and expand the digital economy, and enhance new drivers ofeconomic development.In August 2023, the Ministry of Finance issued the "Interim Provisions on AccountingTreatment of Enterprise Data Resources" ("Interim Provisions"), which stipulated thepresentation and disclosure of enterprise data resources in accounting statements and cameinto effect on January 1, 2024.
According to the Provisional Regulations, the Company has conducted correspondingcalculation and analysis on the data resource allocation for 2023. In recent years, the Companyhas continuously increased its investment in digitalization and data resource related fields,reaching RMB 130 million; During the reporting period alone, the Company invested RMB 18million in data resources. In 2024, the Company will continue to expand its investment in dataelements. By the end of the first quarter, the amount of identifiable intangible assets - dataresources - will exceed RMB 8 million. The annual investment is expected to exceed RMB 50million.
During the reporting period, the Company continued to leverage data elements to empowerand promote the digital transformation and reshaping of small commodity trade across all links,scenarios, and formats. It effectively connected multi-dimensional data such as Yiwu Index,credit reporting, Chinagoods, Yiwu Pay, and Zhijie Yuangang, visualized the trade chain,provided assistance policies such as warehousing and logistics, display transactions, supplychain finance, and foreign trade warning. Taking the opportunity of public data authorizationoperation, the Company innovated application models and collaborative mechanisms, and builta more comprehensive credit evaluation system, providing financial institutions and governmentdepartments with precise resource allocation, achieving effective regulation and controllablerisks.
(1) Successfully completed the certification work of Yiwu Index - related data
The Yiwu Index is a price indicator and market barometer that leads the development of theYiwu market. The Yiwu Index, as the core module for capitalization of company data elements,has successfully achieved the confirmation of ownership of Yiwu Index - related data in 2023with the support of the "People's Chain", ensuring the legal and compliant circulation of futureindex related data elements and laying the foundation for subsequent data capitalization.
The Yiwu Index has been continuously and completely recorded and stored in theCompany's data center for 17 years from 2006 to 2023, including a total index, various levels ofindices, and raw collected data of approximately 10 million rows. Based on Yiwu ChinaCommodities market trading data, comprehensively reflect the macroeconomic situation andreveal the macroeconomic turning point in advance.
The "Yiwu China Small Commodity Index Information Special Issue" based on the YiwuIndex has been disseminated to tens of thousands of buyers from over 100 countries includingEurope, America, the Middle East, and Africa through various channels. Write and publish over1200 articles, including weekly price index reviews, monthly prosperity index analysis, andquarterly market operation survey questionnaire analysis, targeting governments, researchinstitutions, etc., to provide practical basis for policy formulation and market research.
(2) Deepened the "Data Element X Commercial Circulation" action plan, and continuouslyaccumulated commercial data and high-value application products.
In terms of data element product innovation, based on public data operation and enterprisedata, we promote the operation innovation model of financial derivative products from public dataauthorization to "data element X commercial circulation" as the basis. We develop a commercialcirculation industry guidance index, expand shop credit, inclusive finance and other data elementproducts, actively promote the upgrading of the commercial circulation industry, and provideempowerment and efficiency improvement guidance for merchants, creating a future "DowJones" index cluster in the field of commerce and trade in China, and releasing the value of dataelements in the commercial and trade circulation industry.
In the more than 40 years of development in the Yiwu market, a large amount of commercialdata has been accumulated. As a leading digital comprehensive service provider in the field ofcommercial circulation, the Company has been deeply involved in the field for many years. Withthe continuous iteration of digital infrastructure in recent years, while strengthening its digitaltrade service capabilities, the Company has accumulated a massive amount of data resourcesin the field of commercial circulation, including merchant data, performance data, payment data,credit data, index data, etc. Based on the Company's vast commodity trading network and yearsof data accumulation in the field of commercial circulation, and on the basis of deepening thedevelopment of market digitization and trade digitization in recent years, the Company continuesto increase investment in the development of data resources.
The Company has conducted a detailed analysis of the development inputs and outputsrelated to data resources in 2023 and as of the end of the first quarter of 2024, and has identifiedmultiple potential high-value data products and applications at present
| Item | Application scenarios | Expected value realization method |
(3) Planning of and investment in data element capitalization
To ensure the smooth iteration of the Yiwu China Small Commodity Index and betterleverage its role as a “price indicator and market barometer”, in 2024, the Company will use theinclusion of data resources related to the Yiwu Index into balance sheet as a driving force to
| Chinagoods- related data products and applications | Online transaction intelligent matching, AI vertical commerce and trade model, intelligent warehousing and logistics, supply chain optimization management, trade performance, mobile applications, precise push, etc. | By accumulating trade data, combined with the application of big data and artificial intelligence (AI) technology, the Company provides value-added services such as market trend prediction, consumer behavior analysis, digital marketing, refined operations, and customized intelligent solutions to merchants, helping them reduce costs, increase efficiency, and double business performance. |
| Yiwu Pay-related data products and applications | Trade financing credit reporting services based on settlement data, credit assessment and risk management, prevention and monitoring of money laundering and terrorist financing, etc. | The plan is to launch trade financing products in 2024, integrating foreign exchange data and credit data, providing enterprises with efficient, convenient, and low-cost financing methods, breaking the information silos of traditional supply chain finance, and seamlessly integrating data flow and capital flow. |
| Credit data products and applications | Optimization of the entire process of credit management in financial institutions, including pre-loan credit assessment and risk control, in loan monitoring, customer identification, credit limit calculation, etc. | Credit report: Providing credit report inquiry and personalized interface services according to the needs of financial institutions, helping financial institutions comprehensively understand customer credit history and financial status; Risk warning: Analyzing customer profiles through their buying and selling transaction data, timely pushing risk warning analysis to financial institutions, and thus preventing potential credit risks; Intelligent customer acquisition: Supporting dynamic management of potential users and achieving automated marketing |
| Application of index data products | These products are intended for analyzing macroeconomic conditions, industry operation trends, monitoring consumer market trends, predicting future market trends, etc. | To provide basic and customized value-added services for different user groups, combined with cooperation with external institutions and AIGC technology, the Company enhances the practicality and innovation of Yiwu Index data products, explores diversified sources of income, and provides users with more comprehensive and in-depth market insights and decision-making support. |
promote the top-level construction of data element capitalization. With the Yiwu Index cluster asa landmark, the Company will promote industrial policy guidance and industrial upgradingempowered by data elements, build a path for data asset value in the digital economy era, andform a new driving force for the growth of the commercial circulation industry. The Companyplans to collaborate with third-party organizations to promote the capitalization of relevant dataelements. These are specifically manifested in the following as aspects:
① Upgrading the data platform. The Company plans to and its corresponding dataapplication functions by upgrading the index data collection method, optimizing and upgradingthe index model, developing index prediction functions, implementing data visualization cockpit,and integrating data dashboards.
② Expanding the breadth of the index. Based on the current Yiwu Index, the Companyplans to build and upgrade index clusters at different levels (world-class, national, industrial, andenterprise), such as the "Belt and Road" countries trade vitality index, price-prosperity compositeindex, small commodity supplier rating index, and SME vitality index, and build the "Dow Jones"index in the field of commerce and trade in China as a forward-looking indicator.
③ Increasing the depth of the index. The Company plans to combine the needs of differentuser groups (government, industry, and corporate clients) and carry out refined management,providing differentiated data product services with different granularity, quality, form, and contentto different customer groups, such as macroeconomic analysis reports, industry professionaldatabases, professional report libraries, commercial solutions, etc.
④ Enhancing the impact of the index. The Company plans to deepen cooperation withmainstream domestic and foreign media and relevant institutions, expand the channels for indexpromotion, upgrade the "one magazine, one website, one account", and enhance the influenceof the index.
The Company actively responds to the development needs of the digital economy era,researches and invests in a new track of data element X, relies on accumulated data resourcesand capabilities, constructs a new business and asset portfolio, expands new data products andservice models, drives business applications, and provides digital services for small andmedium-sized enterprises. Based on this, the Company establishes a digital economy landmark,forms new quality productivity, and accelerates its transformation to an "international tradecomprehensive service provider".
(ii) Development strategies of the Company
√Applicable □Not applicable
At the Fifth China-Africa Entrepreneurs Conference, General Secretary Xi Jinping calledYiwu the world "Capital of Small Commodities", pointing out the direction for the development ofthe market and the Company. As the builder and service provider of Yiwu market, the Company
shoulders the historical mission of building the world's "Capital of Small Commodities" with highquality and high level. The Company puts forward the development strategy of “taking the marketas the main business, taking the digital as the link, taking the platform as the support, buildingan international trade comprehensive service provider”.With the goal of building the world's "Capital of Small Commodities" with high quality andhigh standards, focusing on the main market business, promoting various resource elements toconcentrate in the main business, opening up all links of the domestic and foreign trade supplychain through vigorously developing digital trade, and continuously enhancing and upgradingthe core competitiveness to empower the small commodity industry chain and ecosystem,promoting the transformation of the physical market into a global trade service platform for small,medium and micro enterprises, and the transformation of the Company from a market managerto a comprehensive trade service provider.
(iii) Business plan
√Applicable □Not applicable
2024 is the beginning year for Yiwu to build a model and rebuild brilliance, as well as a yearof tackling difficulties, a year of striving for progress. The Company has anchored its strategicgoal of becoming a "world-class international trade comprehensive service provider", taking it asits responsibility to build the world's small commodity capital with high quality and level. Withinthe framework of a unified national market, it coordinates the promotion of market innovationand enterprise transformation and upgrading, breaks through traditional business physicallimitations through digital reform, and accelerates to become a global leading enterprise incommerce and trade that empowers the mass trade of small commodities.
(1) Continuously enhancing market core competitiveness and building a "world trade center"for small commodities
1. Accelerating the construction of a Global Digital Trade Center that integrates digitalservice trade, innovative design, and brand selection, and fully carrying out business modeplanning, investment attraction, and customer retention. Accelerating the upgrading of traditionalmarkets and the construction of digital markets, updating and transforming existing software andhardware facilities in the market, building two major application scenarios of digital services anddigital operation and maintenance, enhancing the experience of buyers and the sense of gainfor operators, while providing support for the digital transformation of the physical market andthe development of new digital economy business forms. In 2024, the Global Digital TradeCenter will clarify its market industry layout plan and complete the acquisition and retention ofover 4,000 investors and customers in the market sector; promote the lighting renovation ofInternational Trade City markets and create distinctive industry blocks.
2. Implementing actions to promote the prosperity and development of new business forms.Promoting the digital modernization and upgrading of exhibitions, adhering to the branding andinternationalization of exhibitions, strengthen the linkage between online and on-site, domestic
and overseas exhibitions, enhancing the market attraction and driving effect of exhibitions, andhelping build a world exhibition characteristic city. In 2024, the Company will hold more than 50domestic exhibitions; and accelerates the planning of a new exhibition center and forms aconceptual planning plan.
(2) Continuously enhancing the driving force of digital empowerment and promoting thedigitization of the entire trade chain
1. Expanding and strengthening the Chinagoods platform. Comprehensively linking theglobal Internet trading platform, integrating the digital performance services of "customs,warehouse and finance", building a fourth party service platform, and promoting it to become aplatform of platform. In 2024, the online transaction volume of new services will exceed RMB 80billion, and a total of 200 digital service applications will be launched.
2. Building a new ecosystem for digital trade performance. Focusing on the digital free tradeapplication of small commodities, the Company will accelerate the development of Caigoubaoand the Caigoubao industry belt, expand the digital application scenarios of the small commodityindustry chain, accelerate the promotion of the "market procurement+ B2B foreign tradeservices" application scenarios, and create a new model of "consolidation of goods across Chinaand export at Yiwu".
3. Improving the digital financial service system. Deepening the cross-border RMB+ cross-border foreign exchange payment settlement business system, explore cross-border e-CNYsettlement channels, accelerate the global layout of cross-border payment licenses, and build across-border payment network that connects the world.
4. Continuously improving the Yiwu China Small Commodity Index. Deepening cooperationwith units such as People's Daily and People's Data, upgrading index models, exploiting datavalue, optimizing indicator collection systems, and enhancing the analytical ability andapplication value of the Yiwu China Small Commodity Index in global small commodity trade. In2024, the Company will complete the reconstruction of the data system for the Yiwu China SmallCommodity Index, explore the derivation of more data products and services, release newversions to the public, and expand the channels for index release globally.
(3) Continuously improving internal and external opening up to help build a dual circulationstrategic node
1. Deepening the plan for the Yiwu Market Project. Focusing on the countries and regionsalong the "Belt and Road", the Company will make overall use of "overseas sub-markets,overseas warehouses, overseas websites, Yiwu Selection overseas exhibition halls, andoverseas exhibitions", and deeply integrate into the world in terms of products, culture, standards,and rules, so that small commodities of China can reach a larger market. In 2024, the Companywill focus on expansion in emerging markets such as the Middle East, Southeast Asia, SouthAmerica, and Africa, with a total of more than 20 projects including overseas sub-markets, FBC
overseas warehouses, Yiwu Selection overseas exhibition halls, overseas exhibitions, andoverseas websites.
2. Building high-quality open platforms. Giving full play to the policy advantages of theComprehensive Bonded Zone, strengthening exports, expanding imports, developingtransshipment, and continuously improving the level of domestic and foreign opening up;Improving the digital third-party delivery platform for cross-border logistics, and helping stabilizeinternational trade chains and increase the international trade volume. In 2024, YiwuComprehensive Bonded Zone will complete an import volume of over RMB 48 billion; The digitalthird-party delivery platform for cross-border logistics services will have a shipment volume ofover 80,000 TEUs of goods.
(4) Continuously improving market capitalization management capabilities, achievingsustainable development of the enterprise and maximizing the interests of all shareholders
On March 15, the China Securities Regulatory Commission issued the "Opinions onStrengthening the Supervision of Listed Companies (Trial)", which proposed to strengthen themain responsibility of market capitalization management of listed companies, guide listedcompanies to closely monitor the market's evaluation of company value, actively improveinvestor return ability and level, and other guiding opinions, clarifying unified regulatoryrequirements.
On March 22, the Shanghai Stock Exchange issued the Initiative for SSE-Listed Companiesto Launch a Special Action for “Improving Quality and Efficiency and Valuing Returns”. It calledon listed companies to follow the principles of "voluntary, open, and pragmatic", carry out aspecial action to improve the quality of operations and profitability, accelerate the developmentof new productive forces, enhance the investment value of the Company, and sincerely repayinvestors.
As a state-owned holding listed company, achieving high-quality development of ChinaCommodities City is crucial for the preservation and appreciation of state-owned assets, thelong-term development of the Company, and the interests of shareholders. Based on this, theCompany has formulated an action plan for market capitalization management and the 2024Action Plan for “Improving Quality and Efficiency and Valuing Returns”.
Strategic goals: Focusing on the development goal of becoming a world-class internationaltrade comprehensive service provider, continuously improving business performance andmanagement level, continuously enhancing the core competitiveness of the enterprise,continuously enhancing market capitalization management ability, achieving sustainabledevelopment of the enterprise and maximizing the interests of all shareholders.
Basic principles: Adhering to the principles of openness, fairness, and impartiality, followingthe requirements of true, accurate, complete, and timely information disclosure, managing themarket capitalization of the Company in accordance with the law and regulations, andsafeguarding the legitimate rights and interests of the Company and its shareholders.
Specific measures:
1. Strengthening information disclosure and transparency
In the evaluation results of information disclosure work of listed companies on the ShanghaiStock Exchange in 2022, the Company was rated A level. The Company will continue to makeefforts to provide comprehensive and transparent financial reports and market dynamics, and topositively convey the Company's value in a reasonable and compliant manner; After theCompany's new official website is launched, a dedicated investor interaction column will be setup, and designated platforms such as the Shanghai Stock Exchange E-Interaction will be usedto promptly respond to market concerns and investor inquiries. The Company will regularly holdinvestor briefing meetings and carry out activities such as "Investors Entering Listed Companies"to enhance investors' awareness and confidence in the Company.
2. Improving operational efficiency and profitability
Continuously consolidating the operation of core business operations and solidifying thefoundation; Gradually divesting inefficient and non-performing assets, and improve asset quality;Actively exploring new business models and growth points, and forming competitive new growthpoles.
3. Promoting investment and mergers and acquisitions that meet industry needs
Actively promoting investments and mergers that align with the Company's long-termdevelopment strategy, strengthening industrial layout, and further enhancing the Company'sinfluence in the global supply chain.
4. Strengthening investor relationship management
This includes transparent and timely disclosure of important information to investors, activeinteraction and communication with investors and analysts, quick response to media reports andproactive release of company news, while setting crisis response strategies and trainingcommunication teams, and continuously improving and learning to enhance relationshipmanagement capabilities.
5. Adhering to regulatory requirements to ensure compliance
Adhering to standardized operation; Establishing a sound internal control system and riskmanagement system, strengthening internal training, and strictly preventing improper behaviorssuch as market manipulation and insider trading.
6. Improving long-term returns
The Company plans to continuously increase the proportion of profits distributed in cashwithin three years from 2024; Through equity incentives and other means, the Company willestablish and improve the long-term incentive and constraint mechanism of the Company, andachieve a win-win situation for the Company, employees, and shareholders.
(iv) Potential risks
√Applicable □Not applicable
1. Market operation risk. Large-sized shopping malls, hypermarkets, warehouse stores ande-commerce platforms are strong competitors in the commodities trading market. Large-sizedshopping malls offer products of reliable quality and well-known brands; hypermarkets orwarehouse stores supply diversified products at low prices; e-commerce platforms provide newtrading means and facilitate consumers. Purchasers or consumers may also choose to makeprocurement or consumption via e-commerce platforms for convenience. Therefore, theCompany may compete with other forms of business. In addition, affected by the risingspecialized market, robust development of the industry market and rapid development of thecentral and western regions, the Company may also face competition from other similarspecialized markets.
2. Risk from insufficient reserve of talents. With the acceleration of market transformationand the expansion of the Company’s business, and with the expansion of experiencedinternational trade, warehousing and logistics, supply chain, overseas development, informationdata, industrial investment, and business operations, the Company may face the risk ofinsufficient reserves of professional talents and compound talents.
3. External uncertainty. International political conflicts have caused increased uncertainty ininternational trade, and the development of global market trade is more complicated and severethan before; new technologies are accelerating to breed new opportunities, and new trademodels and new formats are constantly emerging.
(v) Other
□Applicable √Not applicable
VII. Situation of the Company failing to disclose and explain the reasons in accordance
with the standards due to special reasons such as non-applicable standards or state
secrets and trade secrets.
□Applicable √Not applicable
Section IV. Corporate governanceI. Description of corporate governance
√Applicable □Not applicable
During the reporting period, in strict accordance with the Company Law of the People'sRepublic of China, the Securities Law of the People's Republic of China, the Code ofGovernance for Listed Companies and the relevant laws and regulations of the China SecuritiesRegulatory Commission and the Shanghai Stock Exchange, the Company continuouslyestablished and improved the relevant systems, endeavoured to improve the corporategovernance structure, standardized operations and law-abiding operations.There was nodifference between the actual situation of corporate governance structure and the normativedocuments concerning the governance of listed companies(I) Shareholders and general meetings of shareholdersThe Company held shareholders' meetings in strict accordance with the Rules forShareholders' Meetings of Listed Companies to ensure that all shareholders of the Companyfully exercise their rights, especially the rights of minority shareholders. The Company usuallyearnestly received visits and calls from shareholders to ensure that shareholders have the rightto know, participate and vote on major issues of the Company, so that shareholders truly enjoyequal rights.(II) Controlling shareholders and the listed companyThe controlling shareholders of the Company exercised the rights of investors according tolaw through the shareholders' meeting, and did not directly or indirectly interfere with theCompany's decision-making and business activities beyond the shareholders' meeting, so as toachieve the "five independence" in terms of assets, personnel, finance, organization andbusiness, and the Company's board of directors, board of supervisors and internal organs canoperate independently. The controlling shareholder of the Company can strictly abide by thepromise made to the Company to avoid horizontal competition. When engaging in related partytransactions with controlling shareholders, the Company strictly followed relevant laws andregulations to ensure fairness, impartiality, and fairness in related-party transactions.(III) Directors and Board of DirectorsThe Company selected directors in strict accordance with the procedures stipulated in theArticles of Association and held board meetings in strict accordance with the Code ofGovernance for Listed Companies. All directors of the Company can conscientiously attend theboard of directors and shareholders' meetings, actively participate in training, andconscientiously perform their duties as directors. The three independent directors canconscientiously perform the duties and obligations entrusted by laws, regulations and theCompany's articles of association, express independent opinions and suggestions on important
matters of the Company, and effectively protect the legitimate rights and interests ofshareholders.(IV) Supervisors and Board of SupervisorsDuring the reporting period, the Company held five supervisory meetings, and the conveningprocedures of each meeting complied with relevant laws and regulations. The Company'ssupervisors can earnestly perform their duties, supervise the Company's major matters,supervise the legality and compliance of the Company's directors and senior managers inperforming their duties, and safeguard the legitimate rights and interests of the Company andshareholders.(V) Information disclosure and investor relationship managementThe Company disclosed relevant information in a true, accurate, complete and timelymanner in accordance with the "Administrative Measures for Information Disclosure of ListedCompanies". The public can learn about the Company's situation through media promotion,telephone consultation, and other means. In addition to completing the disclosure of periodicreports and temporary announcements mandatory by regulations, the Company actively carriedout voluntary information disclosure in compliance with regulations, so that investors can havea continuous understanding of the business situation of concern, and truly protect the right ofshareholders to know.
Whether there are major differences between the corporate governance and the requirementsof the law, administrative laws and regulations, and relevant regulations of the China SecuritiesRegulatory Commission; if there are major differences, the reasons should be explained.
□Applicable √Not applicable
II. Specific measures for ensuring the independency of the Company's controllingshareholder and actual controller in company assets, personnel, finance,organization, business and others, and solutions taken after they influenced theindependency of the Company, the progress thereof and follow-up work plan
□Applicable √Not applicable
The situation where the controlling shareholder, actual controller, and other units undertheir control engage in the same or similar business as the Company, as well as the impact ofsignificant changes in industry competition or industry competition on the Company, themeasures taken, progress made in resolving the issue, and subsequent resolution plans.
□Applicable √Not applicable
III. General meeting of shareholders
| Session of meeting | Date | Designated website on which the resolution is published | The disclosure date of the resolution published | Resolution of the meeting |
| The First Extraordinary General Meeting of Shareholders in | January 13, 2023 | www.sse.com.cn | January 14, 2023 | See the resolution notice for details |
| 2023 | ||||
| 2022 Annual General Meeting of Shareholders | May 5, 2023 | www.sse.com.cn | May 6, 2023 | See the resolution notice for details |
| The Second Extraordinary General Meeting of Shareholders in 2023 | July 6, 2023 | www.sse.com.cn | July 7, 2023 | See the resolution notice for details |
The preferred shareholders whose voting rights had been restituted requested to anextraordinary general meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2023 First Extraordinary General Meeting of Shareholders reviewed and approvedthe Proposal on the Redemption of the Remuneration of Certain Directors of the Company in2021.
2. The 2022 Annual General Meeting of Shareholders reviewed and adopted the 2022Annual Work Report of the Board of Directors, the 2022 Annual Work Report of the Board ofSupervisors, the 2022 Annual Report and Summary, the 2022 Annual Financial Report, the 2023Annual Financial Budget Report, the 2022 Annual Profit Distribution Plan, the Proposal on theRenewal of the Employment of the Accounting Firm, the Proposal on the Issuance of VariousDebt Financing Instruments in the Next 12 Months, and the Proposal on the Investment in andConstruction of Yiwu Global Digital Free Trade Center.
3. The Second Extraordinary Shareholders' Meeting in 2023 reviewed and approved theProposal on the Conditions for Issuing convertible corporate Bonds to Unspecified Objects, theProposal on Issuing Convertible Corporate Bonds to Unspecified Objects, the Proposal on thePre-plan for Issuing Convertible Corporate Bonds to Unspecified Objects, and the Proposal onFeasibility Analysis Report on the Use of Funds Raised by Issuing Convertible Corporate Bondsto Unspecified Objects, the Proposal on No Need to Prepare a Report on the Use of the PreviousRaised Funds, and the Proposal on Risk Warning, Filling Measures and Related SubjectCommitment for Diluting Spot Return of Convertible Corporate Bonds Issued to UnspecifiedObjects, the Proposal on Shareholder Dividend Return Planning for the Next Three Years (2023-2025), the Proposal on Formulating Rules for the Meeting of Holders of Convertible CorporateBonds of the Company, the Proposal on the Demonstration and Analysis Report on the Schemeof Issuing Convertible Corporate Bonds to Unspecific Objects, the Proposal on Requesting theGeneral Meeting of Shareholders to Authorize the Board of Directors and its Authorized Personsto Handle Matters Related to the Issuance of Bonds.
IV. Directors, supervisors and senior management(i) Changes in shareholding and remuneration of current and resigned directors, supervisors and senior executives during the reportingperiod
√Applicable □Not applicable
Unit: share
| Name | Title | Sex | Age | Start date of tenure | End date of tenure | Number of shares held at the beginning of the year | Number of shares held at the end of the year | The amount of stock increase or decrease during the year | Reasons for change | Total pre-tax remuneration received from the Company during the reporting period (RMB ten thousand) | Whether to receive remuneration from related parties of the Company |
| ZHAO Wenge | Chairman | Male | 57 | September 27, 2018 | 34 | 34 | 50.76 | No | |||
| WANG Dong | Vice Chairman and General Manager | Male | 51 | March 8, 2019 | 30 | 30 | 50.76 | No | |||
| LI Chengqun | Director | Male | 52 | May 12, 2014 | 0 | 0 | 0 | Yes | |||
| ZHANG Lang | Director | Male | 50 | November 8, 2022 | 0 | 0 | 0 | Yes | |||
| XU Hang | Director and Secretary of the Board of Directors | Male | 50 | December 12, 2017 | 30 | 30 | 43.15 | No | |||
| ZHANG Leping | Director | Male | 44 | November 8, 2022 | 0 | 0 | 0 | Yes | |||
| MA Shuzhong | Independent director | Male | 56 | August 27, 2019 | 0 | 0 | 7.2 | No | |||
| HONG Jianqiao | Independent director | Male | 58 | May 22, 2020 | 0 | 0 | 7.2 | No | |||
| LUO Jinming | Independent director | Male | 56 | April 9, 2021 | 0 | 0 | 7.2 | No |
| JIN Xiaojia | Chairman of the Supervisory Board | Male | 36 | December 16, 2016 | 0 | 0 | 0 | Yes | |||
| WANG Jinjian | Supervisor | Male | 51 | October 26, 2020 | 0 | 0 | 0 | Yes | |||
| WU Menghua | Supervisor | Female | 33 | March 10, 2022 | 0 | 0 | 0 | Yes | |||
| FANG Min | Employee supervisor | Male | 39 | December 8, 2020 | 0 | 0 | 31.65 | No | |||
| JIN Yongsheng | Employee supervisor | Male | 46 | December 8, 2020 | 0 | 0 | 18.93 | No | |||
| HUANG Haiyang | Vice general manager | Male | 35 | June 21, 2022 | 0 | 0 | 43.15 | No | |||
| ZHANG Qizhen | Vice general manager | Male | 56 | July 7, 2017 | January 17, 2024 | 30 | 30 | 43.15 | No | ||
| SHOU Shengdi | Vice general manager | Male | 50 | November 4, 2021 | 0 | 0 | 43.15 | No | |||
| LI Xiaobao | Vice general manager | Male | 47 | June 21, 2022 | 0 | 0 | 43.15 | No | |||
| GONG Chenghao | Vice general manager | Male | 44 | September 29, 2021 | 20 | 20 | 43.15 | No | |||
| YANG Yang | Vice general manager | Male | 41 | September 29, 2021 | 20 | 20 | 43.15 | No | |||
| HUANG Xiaoying | Vice general manager | Female | 41 | March 9, 2023 | 0 | 0 | 35.96 | No | |||
| ZHAO Difang | Financial Manager | Female | 51 | May 12, 2024 | 35.01 | 35.01 | 43.15 | No | |||
| Total | / | / | / | / | / | 199.01 | 199.01 | / | 554.86 | / |
| Name | Main working experience |
| ZHAO Wenge | He used to be Vice Chairman and General Manager of the Company, and is currently Secretary of the Party Committee and Chairman of the Company. |
| WANG Dong | He used to be a member and deputy director of the Party Committee of Yiwu SASAO, and deputy director (concurrently) of the management committee of the State-owned Assets Operation Center, and is currently the deputy secretary of the Company’s party |
| committee, vice chairman and general manager. | |
| LI Chengqun | He used to be the deputy party secretary, vice chairman and general manager of Yiwu Small Commodity City Evergrande Development Co., Ltd., and is currently the party secretary, chairman and company director of Yiwu Market Development Group Co., Ltd. |
| ZHANG Lang | He used to be the party secretary, vice chairman and general manager of Yiwu International Land Port Group Co., Ltd., and is currently the deputy secretary, vice chairman, general manager and company director of Yiwu Market Development Group Co., Ltd. |
| XU Hang | He used to be general manager of the Company's securities legal affairs department, and representative of securities affairs of the Company's, and is currently a director and the secretary of the board of the Company. |
| ZHANG Leping | He used to be the general manager of Hangtou Equity Investment Fund Management (Hangzhou) Co., Ltd., and is currently the deputy general manager and director of Zhejiang Zhecai Capital Management Co., Ltd. |
| MA Shuzhong | He is currently the dean of the China Digital Trade Research Institute of Zhejiang University and concurrently serves as an independent director of the Company. |
| HONG Jianqiao | He is currently the dean of the Accounting Department of the School of Management, Fudan University, and concurrently serves as an independent director of the Company. |
| LUO Jinming | He's now a professor of Zhejiang University, and an independent director of the Company and Silan Microelectronics Co., Ltd. |
| JIN Xiaojia | He used to be the accounting director of the Finance Department of Yiwu Communications Investment and Construction Group, and is currently a supervisor and chairman of the supervisory committee of the Company. |
| WANG Jinjian | He used to be the deputy general manager of Yiwu China Commodity City Property Development Co., Ltd., and is currently the general manager and company supervisor of Yiwu China Commodity City Property Development Co., Ltd. |
| WU Menghua | She used to be a supervisor of Yiwu Market Development Group Co., Ltd., concurrently a supervisor of Yiwu State-owned Capital Operation Co., Ltd. and a supervisor of Yiwu Industrial Investment Development Group Co., Ltd., and currently serves as a supervisor of the Company. |
| FANG Min | He used to be a business commissioner of the Company’s human resources department (party construction office), and currently serves as deputy general manager of the Company’s human resources department (party construction office) and employee supervisor of the Company. |
| JIN Yongsheng | He used to be the business assistant of the Company's supervision and audit department, the accounting supervisor of the finance department of the Company's Ocean Hotel, and the internal audit supervisor of the Company's legal audit department. He is currently the financial director of Yourworld International Conference Center and the Company's employee supervisor. |
| HUANG Haiyang | He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co., Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodity City Group Co., Ltd. |
| ZHANG Qizhen | He used to be the general manager and marketing director of the Company's marketing department, and is currently a member of the party committee and deputy general manager of the Company. |
| SHOU Shengdi | He used to be a member of the Party Committee of Zhejiang Yiwu Municipal Bureau of Foreign Trade and Economic Cooperation, a member of the Party Committee and Deputy Director of Zhejiang Yiwu City Commerce Bureau, and is currently a member of the party |
| committee and deputy general manager of the Company. | |
| LI Xiaobao | He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co., Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodity City Group Co., Ltd. |
| GONG Chenghao | He used to be the general manager of Yiwu China Commodity City Information Technology Co., Ltd., and the general manager of Yiwu China Commodity City Supply Chain Management Co., Ltd., and is currently a member of the party committee and deputy general manager of the Company. |
| YANG Yang | He used to be the general manager of Zhejiang Yiwu China Commodity City Imported Commodity Market Branch, the general manager of Zhejiang Yiwu China Commodity City Import and Export Co., Ltd., and is currently a deputy general manager of the Company. |
| HUANG Xiaoying | She used to be the director of the Supervision Office of the People's Government of Fotang Town, the secretary of the Disciplinary Committee, and a member of the Party Committee. He is currently a member of the Party Committee and Deputy General Manager of the Company. |
| ZHAO Difang | She used to be the general manager of the Company's financial department and is currently the head of the Company's finance. |
Statement on other matters
□Applicable √Not applicable
(ii) Appointments of current and resigned directors, supervisors and senior executivesduring the reporting period
1. Position in shareholder units
√Applicable □Not applicable
| Name of incumbent | Name of shareholder unit | Positions held in shareholder units | Start date of tenure | End date of tenure |
| ZHAO Wenge | Yiwu China Commodities City Holdings Limited | Chairman, General Manager | 2019 | |
| WANG Dong | Yiwu China Commodities City Holdings Limited | Director | 2021 | |
| LI Chengqun | Yiwu Market Development Group Co., Ltd. | Chairman | 2014 | |
| ZHANG Lang | Yiwu Market Development Group Co., Ltd. | Vice Chairman and General Manager | 2022 | |
| ZHANG Leping | Zhejiang Zhecai Capital Management Co., Ltd. | Vice General Manager | 2022 | |
| JIN Xiaojia | Yiwu China Commodities City Holdings Limited | Assigned Full-time Supervisor | ||
| WU Menghua | Yiwu State-owned Capital Operation Co., Ltd. | Assigned Full-time Supervisor | ||
| Description of the position of the shareholder unit | No | |||
2. Serving in other units
√Applicable □Not applicable
| Name of incumbent | Names of other units | Position held in other units | Start date of tenure | End date of tenure |
| HONG Jianqiao | Shanghai Laiyifen Co., Ltd. | Independent director | ||
| HONG Jianqiao | Bailige Biotechnology (Shanghai) Co., Ltd. | Independent director | ||
| LUO Jinming | Hangxiao Steel Structure Co., Ltd. | Independent director | ||
| LUO Jinming | Chengbang Ecological Environment Co., Ltd. | Independent director | ||
| LUO Jinming | Ningbo Qiancheng Furniture Co., Ltd. (listed on NEEQ) | Independent director | ||
| WANG Jinjian | Yiwu China Commodities City Property Development Co., Ltd. | Chairman, general manager | ||
| JIN Xiaojia | Yiwu Shuangjianghu Development Group Co., Ltd. | Deputy Director of Discipline Inspection Office | ||
| Description of employment in other units | No | |||
(iii) Remuneration of directors, supervisors and senior management personnel
√Applicable □Not applicable
| Decision-making procedures for the remuneration of directors, supervisors and senior executives | The remuneration of the Company’s remunerated directors, supervisors and senior executives shall be reviewed by the remuneration and appraisal committee of the Company’s board of directors and submitted to the board of directors for review and approval. The remuneration of directors and supervisors shall also be submitted to the general meeting of shareholders for review and approval. |
| Whether a director recuses himself from the board's discussion of his remuneration | Yes |
| Specific information on the recommendations made by the Compensation and Assessment Committee or the Independent Director's Special Meeting on the remuneration of directors, supervisors, and senior management personnel | The relevant assessment for 2023 has not been completed yet. After the assessment is completed, the salary and assessment committee will provide relevant opinions. |
| The basis for determining the remuneration of directors, supervisors and senior managers | The remuneration of independent directors is determined according to the Independent Director Allowance System, which is reviewed and formulated by the Board of Directors and approved by the shareholders' meeting. The allowance standard is RMB 6,000 (pre-tax) per month. The remuneration of the Company’s directors, supervisors and senior management shall be reviewed and determined by the Board of Directors’ Compensation and Appraisal Committee in conjunction with the assessment opinions and results of the state-owned regulatory authority, and submitted to the board of directors for deliberation. |
| Actual payment of remuneration for directors, supervisors and senior management | The relevant assessment for 2023 has not been completed yet, and the actual compensation will be determined after completing the assessment and fulfilling the relevant procedures. |
| The total remuneration actually received by all directors, supervisors and senior management at the end of the reporting period | The actual payment of remuneration will be determined after completing the assessment and performing the relevant procedures. The current salary paid is the pre-paid salary for the year 2023, with a total pre-tax amount of RMB 5.5486 million. |
(iv) Changes in directors, supervisors and senior officers of the Company
√Applicable □Not applicable
| Name | Title | Change | Reasons for change |
| HUANG Xiaoying | Vice general manager | Hiring | Being hired by the Board of Directors |
(v) Explanation of punishments by securities regulatory agencies in the past three years
□Applicable √Not applicable
(vi) Other
□Applicable √Not applicable
V. Description of the meetings of the Board of Directors held during the reporting period
| Session of meeting | Date | Resolution of the meeting |
| The 7th Meeting of the 9th Board of Directors | March 9, 2023 | Reviewed and approved 1. Proposal on Appointment of Deputy General Manager 2. Proposal on the Cancellation of the Company's Purchasing Service Branch |
| The 8th meeting of the 9th Board of Directors | April 10, 2023 | Reviewed and approved 1. 2022 Annual Work Report of the Board of Directors 2. 2022 Annual Report and Summary 3. 2022 Annual Financial Settlement Report 4. 2023 Annual Financial Budget Report 5. 2022 Annual Profit Distribution Plan 6. Proposal on the Renewal of the Employment of the Accounting Firm 7. 2022 Annual Internal Control Evaluation Report 8. 2022 Annual ESG Report 9. Proposal on Applying for Credit Granting from Relevant Financial Institutions (8) Proposal on Issuing Debt Instruments within the Coming 12 Months 11. Proposal on Authorizing the Chairman to Use Idle Funds for Entrusted Wealth Management 12. Proposal on the Investment in and Construction of Yiwu Global Digital Free Trade Center 13. First Quarter Report for 2023 14. Proposal on Requesting the Convening of the 2022 Annual General Meeting of Shareholders 15. 2022 Annual Internal Control Audit Report 16. 2022 Annual Work Report of Independent Directors 17. 2022 Annual Performance Report of the Audit Committee of the Board of Directors |
| The 9th Meeting of the 9th Board of Directors | April 24, 2023 | Reviewed and approved 1. Proposal on Foreign Investment |
| The 10th Meeting of the 9th Board of Directors | May 11, 2023 | Reviewed and approved 1. Proposal on Entrusted Management of Project Construction and Related Transactions |
| The 11th Meeting of the 9th Board of Directors | June 19, 2023 | Reviewed and approved 1. Proposal on the Conditions for Issuing Convertible Corporate Bonds to Unspecific Objects 2. Proposal on Issuing Convertible Corporate Bonds to Unspecific Objects 3. Proposal on the Pre-plan for Issuing Convertible Corporate Bonds to Unspecified Objects 4. Proposal on Feasibility Analysis Report on the Use of Funds Raised by Issuing Convertible Corporate Bonds to Unspecific Objects 5. Proposal on No Need to Prepare a Report on the Use of Previous Raised Funds 6. Proposal on Risk Warning, Filling Measures and Related Entity Commitment for Diluting Spot Returns of Convertible Corporate Bonds Issued to Unspecific Objects 7. Proposal on Shareholder Dividend Return Planning for the Next Three Years (2023-2025) |
| 8. Proposal on Formulating Rules for the Meeting of Holders of Convertible Corporate Bonds of the Company 9. Proposal on the Demonstration and Analysis Report on the Scheme of Issuing Convertible Corporate Bonds to Unspecific Objects 10. Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors and its Authorized Persons to Handle Matters Related to the Issuance of Bonds 11. Proposal on Convening the Second Extraordinary General Meeting of Shareholders in 2023 | ||
| The 12th Meeting of the 9th Board of Directors | August 17, 2023 | Reviewed and approved 1. Semi-annual Report and Summary for 2023 2. Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks |
| The 13th meeting of the 9th session | October 19, 2023 | Reviewed and approved 1. Third Quarter Report for 2023 2. Proposal on Applying for Development Loans from Financial Institutions for Global Digital Trade Center Projects 3. Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan 4. Proposal on Holding Subsidiary Yiwu China Small Commodities City Exhibition Co., Ltd. to Apply for Being Listed on NEEQ |
| The 14th Meeting of the 9th Board of Directors | December 28, 2023 | Reviewed and approved 1. Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan |
VI. Duties performed by directors(i) Board of Directors and Shareholders Meetings attended by Directors
| Director Name | Independent director or not | Participation in Board of Directors | Participation in general meeting of shareholders | |||||
| Number of board meetings this year | Number of attendances in person | Number of participations by communication | Number of delegates attended | Absence Frequency | Failure to attend the meeting in person twice in a row or not | The number of shareholders attending the general meeting | ||
| ZHAO Wenge | No | 8 | 8 | 6 | 0 | 0 | No | 1 |
| WANG | No | 8 | 8 | 6 | 0 | 0 | No | 3 |
| Dong | ||||||||
| LI Chengqun | No | 8 | 8 | 6 | 0 | 0 | No | 0 |
| Zhang Lang | No | 8 | 8 | 6 | 0 | 0 | No | 0 |
| XU Hang | No | 8 | 8 | 6 | 0 | 0 | No | 3 |
| ZHANG Leping | No | 8 | 8 | 6 | 0 | 0 | No | 2 |
| MA Shuzhong | Yes | 8 | 8 | 6 | 0 | 0 | No | 1 |
| HONG Jianqiao | Yes | 8 | 8 | 6 | 0 | 0 | No | 2 |
| LUO Jinming | Yes | 8 | 8 | 6 | 0 | 0 | No | 1 |
Explanation of not attending the board meeting in person for two consecutive times
□Applicable √Not applicable
| Number of meetings of the Board of Directors held during the year | 8 |
| Including: the number of on-site meetings | 2 |
| Number of meetings held by communication | 6 |
| Number of meetings held on site combined with communication methods | 0 |
(ii) Objections raised by directors on company-related matters
□Applicable √Not applicable
(iii) Other
□Applicable √Not applicable
VII. Committees under the Board of Directors
√Applicable □Not applicable
(i) Members of Committees under the Board of Directors
| Category of committees | Member name |
| Audit committee | Hong Jianqiao Ma Shuzhong Zhang Lang |
| Nomination Committee | Ma Shuzhong Luo Jinming Xu Hang |
| Compensation and Appraisal Committee | Luo Jinming Hong Jianqiao Li Chengqun |
| Strategy Committee | ZHAO Wenge WANG Dong Ma Shuzhong |
(ii) 8 meetings were held by these committees during the report period
| Date | Contents of the meeting | Important comments and suggestions | Other things on duty fulfillment |
| January 9, 2023 | The 2nd Meeting of the Audit Committee of the 9th Board of Directors reviewed and approved the 2022 Integrated Audit Plan | Approved the 2022 Integrated Audit Plan |
| March 9, 2023 | The 2nd Meeting of the Nomination Committee of the 9th Board of Directors approved the Proposal on Nominating Vice General Managers | Agreed to nominate Ms. Huang Xiaoying as the candidate for Vice General Manager | |
| March 10, 2023 | The 3rd Meeting of the Audit Committee of the Ninth Board of Directors approved the Preliminary Communication on the Results of the 2022 Integrated Audit | Approved the preliminary communication on the results of the 2022 integrated audit | |
| April 10, 2023 | The 4th Meeting of the Audit Committee of the 9th Board of Directors reviewed and approved the 2022 Financial Report, 2022 Internal Control Evaluation Report, 2022 Internal Control Audit Report, 2022 Performance Report of the Audit Committee, and Proposal on the Renewal of the Employment of the Accounting Firm | Approved the 2022 Financial Report, 2022 Internal Control Evaluation Report, 2022 Internal Control Audit Report, 2022 Performance Report of the Audit Committee, and Proposal on the Renewal of the Employment of the Accounting Firm | |
| May 5th, 2023 | The 5th Meeting of the Audit Committee of the 9th Board of Directors approved the Proposal on Project Construction Entrustment Management and Related Party Transactions | Approved the proposal on project construction commission management and related party transactions | |
| August 17, 2023 | The 6th Meeting of the Audit Committee of the 9th Board of Directors reviewed and approved the Internal Control Audit Work Report for the First Half of 2023 | Approved the Internal Control Audit Work Report for the First Half of 2023 | |
| October 19, 2023 | The 2nd meeting of the 9th Board of Directors Remuneration and Assessment Committee reviewed and approved the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan | Approved the satisfaction of the unlocking conditions for the first unlocking period of the reserved grant part. | |
| December 28, 2023 | The 3rd meeting of the Compensation and Assessment Committee of the 9th Board of Directors reviewed and approved the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan | Approved the satisfaction of the unlocking conditions for the second unlocking period of the first grant part. |
(iii) The specifics of objection
□Applicable √Not applicable
VIII. Explanation of the Company risk that the board of supervisors founds
□Applicable √Not applicable
The Board of Supervisors has no objection to the supervision matters during the reportingperiod.
IX. Employees of the parent company and major subsidiaries(i) Employees
| Number of employees in the parent company | 2,051 |
| Number of employees in major subsidiaries | 1,410 |
| Total number of employees | 3,461 |
| Number of retired employees for whom the parent company and major subsidiaries have to bear expenses | |
| Professional composition | |
| Professional composition category | Professional composition |
| Production staff | 1,171 |
| Salesperson | 95 |
| Technical staff | 1,320 |
| Financial officer | 144 |
| Administration staff | 383 |
| Security personnel | 348 |
| Total | 3,461 |
| Education level | |
| Education level category | Quantity (people) |
| Postgraduate | 110 |
| Bachelor's degree | 1,598 |
| Junior college education or below | 1,753 |
| Total | 3,461 |
(ii) Salary policy
√Applicable □Not applicable
I. Principles of remuneration system
(1) Combination of duties, powers, responsibilities, and benefits;
(2) It shall be fair internally and competitive externally;
(3) Distribution according to work, priority to efficiency, fairness and sustainable development;
(4) Adoption of the distribution form of "salary determined by post, grade determined by ability,and award determined by performance" to reasonably widen the income gap.
2. Basis of salary system
Position importance, performance contribution, ability, work attitude and spirit of cooperation.
(1) As far as the overall level is concerned, the Company determines the remuneration basedon the current economic benefits and sustainable development.
(2) The Company's salary system includes two different types.
a. The annual salary system is applicable to managers and deputy managers of theCompany's headquarters, as well as members of the management team of branches andsubsidiaries;b. The structured wage system is applicable to employees who have signed labor contractsfor two years and above. Including grassroots management personnel, functional departmentpersonnel, engineering management personnel, logistics management personnel andequipment maintenance personnel.
(3) The remuneration of specially hired staff, staff waiting for duty, retired staff and timingpiecework staff shall be stipulated separately.
(4) The Company's employee income generally includes four parts: job skill wages, bonuses,benefits, and allowances.
(iii) Training program
√Applicable □Not applicable
According to the different training organizations, the Company's employee training can bedivided into: OJT training, company internal training, expatriate training and online training.
1. OJT (On the Job Training). The training of ordinary employees and new employees byleaders of various departments, experienced or skilled employees belongs to OJT training,including the Company's administrative management series training, business managementseries training, engineering technology series training, and security logistics series training.
2. Enterprise internal training. According to the Company's training needs, the Companyorganizes internal trainers or invites external training institutions to tailor training courses forthe Company, allowing employees to receive systematic training, including corporate culture,company organizational structure and rules and regulations, industry status and prospects, andprofessional ethics, etiquette, code of conduct, language, computer skills, etc.
3. Expatriate training In accordance with the needs of the Company's businessdevelopment and job skills, the Company organizes personnel in specific positions to go out toparticipate in the training of training institutions, including financial securities series training,human resource management training, and enterprise management series training.
4. Network training It is an online training for employees through the application ofinformation technology and Internet technology, and different training content is set for differentpositions, so that training and learning are independent and personalized, and the use ofresources is maximized.
(iv) Labor outsourcing
√Applicable □Not applicable
| Total number of working hours of labor outsourcing | 1,552.53 months |
| Total remuneration paid for labor outsourcing | RMB 11.2121 million |
X. Plan for profit distribution or capital reserve into stock capital(i) Formulation, implementation or adjustment of cash dividend policy
√Applicable □Not applicable
According to the China Securities Regulatory Commission's Notice on FurtherImplementation of Cash Dividends by Listed Companies (ZJF [2012] 37) and Zhejiang SecuritiesRegulatory Bureau Notice on Forwarding and Further Implementation of Listed Companies'Cash Dividends (ZZJSSZ [2012] 138) Regulations, the Company held the 24th meeting of thesixth board of directors on August 15, 2012, and reviewed and approved the Proposal onAmending the Articles of Association, which revised the Company’s profit distribution policy andadjustment decision-making mechanism. The second extraordinary general meeting ofshareholders held on September 3, 2012 was deliberated and approved. In order to furtherimplement the new requirements of the China Securities Regulatory Commission's Guidelines
for the Supervision of Listed Companies No. 3-Cash Dividend Distribution of Listed Companies(November 30, 2013) and the Guidelines for Cash Dividend Distribution of Listed Companies ofthe Shanghai Stock Exchange, the forty-fourth meeting of the sixth board of directors of theCompany held on April 17, 2014 reviewed and approved the Proposal on Amending the ProfitDistribution Clauses in the Articles of Association of the Company. The Company further clarifiedthe basic principles, distribution forms, specific policies, decision-making mechanisms andprocedures of the Company's profit distribution, which were reviewed and approved by the 2013Annual General Meeting of Shareholders held on May 12, 2014. The nineteenth meeting of theseventh board of directors of the Company held on December 25, 2015 reviewed and approvedthe Plan of Zhejiang China Commodity City Group Co., Ltd. on Shareholder Dividend ReturnPlan. The 11th Meeting of the 9th Board of Directors held by the Company on June 19, 2023reviewed and approved the Proposal on Shareholder Dividend Return Planning for the NextThree Years (2023-2025).The 2022 Annual General Meeting of Shareholders of the Company held on May 5, 2023approved the profit distribution plan for the year 2022. Based on the total share capital of5,486,074,176 shares, a cash dividend of RMB 0.65 (including tax) would be distributed for every10 shares, with a total distribution of RMB 356,594,821.44. The Board of Directors of theCompany published the 2022 Annual Equity Distribution Implementation Announcement on thewebsite of the Shanghai Stock Exchange, as well as in the China Securities Journal, ShanghaiSecurities Journal, and Securities Times on May 16, 2023. The profit distribution was completedon May 24, 2023. The formulation and implementation of the Company's profit distribution plancomplied with the requirements of the Company's Articles of Association and the resolutions ofthe shareholders' meeting. The dividend standards and proportions were clear and specific, andthe relevant decision-making procedures and mechanisms were complete. The Companylistened to the opinions and demands of small and medium-sized shareholders, and profitdistribution took into account factors such as the Company's industry characteristics,development stage, profitability level, and funding needs. It also took into account therequirements of investors sharing the achievements of the Company's development and growth,and achieving reasonable investment returns.(ii) Special explanation of cash dividend policy
√Applicable □Not applicable
| Whether it complies with the provisions of the Company's articles of association or the requirements of the resolution of the general meeting of shareholders | √Yes □No |
| Whether the dividend standard and ratio are clear and specific | √Yes □No |
| Whether the relevant decision-making procedures and mechanisms are complete | √Yes □No |
| Whether the independent directors performed their duties and played their due role | √Yes □No |
| Whether minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests have been fully protected | √Yes □No |
(iii) During the reporting period, if the parent company is profitable and the profit
available for distribution to shareholders is positive, but does not propose a plan forthe distribution of cash profits, the Company shall disclose in details the reason, theapplication and using plan of the undistributed profits.
□Applicable √Not applicable
(iv) Plan for profit distribution and conversion of capital reserves into share capital
during the reporting period
√Applicable □Not applicable
Unit: RMB
| Number of bonus shares for every 10 shares | 0 |
| Dividend payout for every 10 shares (tax inclusive) | 2.00 |
| Number of shares converted from the capitalization of capital reserve for every 10 shares | 0 |
| Cash dividend amount (tax included) | 1,096,866,835.20 |
| Net profit attributable to common shareholders of listed companies in the annual consolidated statements of dividends | 2,676,182,133.26 |
| Percentage of net profit attributable to common shareholders of listed companies in the consolidated statements (%) | 40.99 |
| The circumstance when repurchase of shares in cash is included in cash dividends | 0 |
| Total dividend amount (tax included) | 1,096,866,835.20 |
| The ratio of the total dividend amount to the net profit attributable to ordinary shareholders of the Listed Company in the consolidated statement (%) | 40.99 |
XI. Incentive stock option plans, employee stock ownership plans and other employeeincentives granted by the Company and the impact thereof(i) Relevant incentive matters have been disclosed in the temporary announcementand there is no progress or change in subsequent implementation.
√Applicable □Not applicable
| Overview of the matter | Query website |
| On October 23, 2020, the twenty-third meeting of the eighth session of the Company's board of directors passed the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and Its Summary, Proposal on the Measures for the Evaluation and Management of the Implementation of the Company's 2020 Restricted Stock Incentive Plan, Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Issues Related to Equity Incentives. The independent directors of the Company issued relevant independent opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on October 24, 2020. |
| On October 23, 2020, the sixth meeting of the eighth board of supervisors of the Company deliberated and approved the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and its Summary, The Proposal on the Implementation Evaluation and Management Measures for the Company's 2020 Restricted Stock Incentive Plan, Proposal on Verification of the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. The board of supervisors issued relevant verification opinions. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | |
| On November 18, 2020, it received the Approval for Approving Zhejiang China Commodity City Group Co., Ltd. to implement the 2020 restricted stock incentive plan issued by the State-owned Assets Supervision and Administration Office of the People's Government of Yiwu City, forwarded by Yiwu China Commodity City Holdings Ltd. (Ref: Yiwu SASAO〔2020〕51). | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 20, 2020. |
| From November 20, 2020 to November 29, 2020, the list of incentive objects and positions of the 2020 restricted stock incentive plan were internally publicized. Within the time limit of the publicity, the board of supervisors of the Company did not receive any objection from any organization or individual or bad feedback, without feedback record. On November 30, 2020, the Board of Supervisors of the Company issued the Examination Opinions and Public Statement of the Board of Supervisors on the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 1, 2020. |
| On December 10, 2020, the Company's 2020 Fifth Provisional General Meeting of Shareholders deliberated and approved the “Proposal on the ‘Company's 2020 Restricted Stock Incentive Plan (Draft)’ and Summary”, the “Proposal on the “Measures of Assessment and Management of Implementation of ‘Company’s 2020 Restricted Stock Incentive Plan’”, and the “Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Deal with Equity Incentive Related Matters”, and disclosed the “Self-examination Report on | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 11, 2020. |
| the Trades of Company’s Stocks by Insiders of Company’s 2020 Restricted Stock Incentive Plan”. | |
| On December 11, 2020, the twenty-sixth meeting of the eighth session of the Company's board of directors passed the Proposal on Granting Restricted Shares to Incentive Objects for the First Time. The independent directors of the Company issued relevant independent opinions. On December 11, 2020, the seventh meeting of the Company's eighth board of supervisors passed the Proposal on Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Supervisors issued the Verification Opinions of the Board of Supervisors on Matters Related to the First Grant of the Company's 2020 Restricted Stock Incentive Plan. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 12, 2020. |
| On January 15, 2021, the Company received the Securities Change Registration Certificate issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the Company completed the registration of the first grant of restricted stocks to incentive objects. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on January 19, 2021. |
| On August 9, 2021, the 35th Meeting of the 8th Board of Directors of the Company passed the "Proposal on Reserved Granting Restricted Stocks to Incentive Objects", "On Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks" 's proposal". The independent directors of the Company issued relevant independent opinions. On August 9, 2021, the 9th Meeting of the 8th Boarder of Supervisors of the Company passed the "Proposal on Reserved Granting Restricted Stocks to Incentive Objects", "Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks" ". The Board of Supervisors issued the Verification Opinions of the Board of Supervisors on Matters Related to the Company's Reserved Grant of the Restricted Stock Incentive Plan in 2020. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on August 11, 2021. |
| On November 4, 2021, the Company received the Securities Change Registration Certificate issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the Company completed the registration of the reserved grant of restricted stocks to incentive objects. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 6, 2021. |
| On November 17, 2021, the Company applied to China Securities Depository and Clearing Co., Ltd. Shanghai Branch for repurchase and cancellation of restricted stocks that have been granted but not yet lifted by some resigned employees. On November 30, 2021, the Company received the "Securities Change Registration Certificate" issued by China Securities Depository and Clearing Co., Ltd. Shanghai Branch, and the Company has completed the registration of the restricted stock repurchase and cancellation. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 26, 2021. |
| On July 19, 2022, the 51st Meeting of the 8th Board of Directors of the Company reviewed and approved the "Proposal on Adjusting the Repurchase Price of Restricted Stocks and the Repurchase and Cancellation of Some Restricted Stocks", and the independent directors of the Company issued a statement on this Independent opinion expressing consent. On July 19, 2022, the 14th meeting of the 8th Supervisory Committee of the Company passed the "Proposal on Adjusting the Repurchase Price of Restricted Shares and Repurchasing and Cancelling Some Restricted Shares". |
For details, please referto the Company'sannouncement on thewebsite of the ShanghaiStock Exchange(www.sse.com.cn) onJuly 20, 2022.
| On October 18, 2022, the Company applied to China Securities Depository and Clearing Co., Ltd. Shanghai Branch for repurchase and cancellation of restricted stocks that have been granted but not yet lifted by some resigned employees. On October 21, 2022, the Company received the "Securities Change Registration Certificate" issued by China Securities Depository and Clearing Co., Ltd. Shanghai Branch, and the Company has completed the registration of the restricted stock repurchase and cancellation. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on October 19, 2022. |
| On December 28, 2022, the 6th Meeting of the 9th Board of Directors of the Company passed the "Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking | For details, please refer to the Company's announcement on the |
| Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan ". The independent directors of the Company have issued independent opinions expressing agreement. On December 28, 2022, the 2nd Meeting of the Company's 9th Board of Supervisors passed the "Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan". The Board of Supervisors issued the "Verification Opinion on the Satisfaction of the Unlocking Conditions for the First Unlocking Period for the First Grant Part of the 2020 Restricted Stock Incentive Plan". | website of the Shanghai Stock Exchange (www.sse.com.cn) on December 29, 2022. |
| On August 17, 2023, the 12th Meeting of the 9th Board of Directors of the Company approved the Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the Company expressed their independent opinion of agreement on this. On August 17, 2023, the 5th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. | For details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on August 18, 2023. |
| On October 19, 2023, the 13th Meeting of the 9th Board of Directors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. The independent directors of the Company have issued independent opinions expressing agreement. On October 19, 2023, the 6th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. The Board of Supervisors issued Verification Opinion on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. | For details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on October 20, 2023. |
| On November 8, 2023, the Company applied to Shanghai Branch of China Securities Depository and Clearing Corporation for the repurchase and cancellation of restricted stocks that had been granted to some resigned employees but still under lock-up. | For details, please refer to the announcement disclosed by the Company on the |
| On November 20, 2023, the Company received a Securities Change Registration Certificate issued by Shanghai Branch of China Securities Depository and Clearing Corporation, and completed the registration for the repurchase and cancellation of restricted stocks. | Shanghai Stock Exchange website (www.sse.com.cn) on October 19, 2023. |
| On December 28, 2023, the 14th Meeting of the 9th Board of Directors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. On December 28, 2023, the 7th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. The Board of Supervisors issued Verification Opinion on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. | For details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on December 29, 2023. |
(ii) Incentives that have not been disclosed in the temporary announcements orhad further progressesIncentive stock option
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
(iii) Equity incentives granted to directors and senior executives during the
reporting period
□Applicable √Not applicable
(iv) The evaluation mechanism for senior managers during the reporting period,as well as the establishment and implementation of incentive mechanisms
√Applicable □Not applicable
In terms of the remuneration evaluation of senior management personnel, performanceassessment results were based on the performance evaluation methods for enterprise leaders,the Company's operating conditions, and relevant assessment indicators.The remuneration was determined by the performance assessment results.
XII. Construction and implementation of internal control system during the reportingperiod
√Applicable □Not applicable
Please refer to the 2023 Internal Control Evaluation Report disclosed by the Company on theShanghai Stock Exchange website for details.
Explanation of major deficiencies in internal control during the reporting period
□Applicable √Not applicable
XIII. Management and control of subsidiaries during the reporting period
√Applicable □Not applicable
Please refer to the 2023 Internal Control Evaluation Report disclosed by the Company on theShanghai Stock Exchange website for details.
XIV. Explanation of the internal control audit report
√Applicable □Not applicable
Ernst&Young Hua Ming Certified Public Accountants (Special General Partnership) washired by the Company to conduct an audit of the effectiveness of internal control over theCompany's financial reports for the year 2023 and issued an internal control audit report withstandard unqualified opinion. It is believed that the Company has maintained effective internalcontrol over financial reporting in all material aspects as of December 31, 2023, in accordancewith the Basic Norms for Enterprise Internal Control and relevant regulations. Please refer to thewebsite of Shanghai Stock Exchange (www.sse.com.cn) for details of the "Internal Control AuditReport".Disclosure of internal control audit report: YesOpinion type of internal control audit report: standard unqualified opinion
XV. Self-examination and rectification of the Listed Company's governance special
actions
NA
XVI. Other
□Applicable √Not applicable
Section V. Environmental and Social Responsibilities
I. Environmental issues
| Whether the Company established relevant mechanisms for environmental protection | No |
| Investment in environmental protection funds during the reporting period (unit: RMB 10,000) | NA |
(i) Description of the environmental protection status of the Company and its mainsubsidiaries that are key pollutant discharging units announced by the environmentalprotection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than thekey pollutant discharging units
□Applicable √Not applicable
(iii) Relevant information that is conducive to protecting ecology, preventing pollution,and fulfilling environmental responsibilities
□Applicable √Not applicable
(iv) Measures taken to reduce their carbon emissions during the reporting period and theeffect
| Whether the Company took carbon reduction measures | Yes |
| Reduction of carbon dioxide equivalent emissions (unit: tons) | 30,000 |
| Types of carbon reduction measures (such as using clean energy to generate electricity, using carbon reduction technologies in the production process, developing and producing new products that help reduce carbon emissions, etc.) | Clean energy power generation |
Specific instructions
□Applicable √Not applicable
II. Social responsibility(i) Whether to disclose social responsibility report, sustainable development report or
ESG report separately
√Applicable □Not applicable
For details, please refer to the 2023 Annual ESG Report disclosed by the Company on theShanghai Stock Exchange website
(ii) Social responsibility
□Applicable √Not applicable
Specific instructions
□Applicable √Not applicable
III. Status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□Applicable √Not applicable
Specific instructions
□Applicable √Not applicable
Section VI. Significant Matters
I. Fulfillment of commitments(i) Commitments made by the actual controller, shareholders, affiliates and acquirer ofthe Company, the Company itself and other related parties during the reportingperiod or as of the reporting period
□Applicable √Not applicable
(ii) If there is a profit forecast for the Company’s assets or projects, and the reportingperiod is still in the profit forecast period, the Company will explain whether theassets or projects have reached the original profit forecast and the reason.
□Reached □Not reached √Not applicable
(iii) Completion of performance commitments and its impact on the impairment testof goodwill
□Applicable √Not applicable
II. Non-operating capital occupation by controlling shareholders and other related
parties during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. The Company's explanation on the ‘non-standard opinion audit report’ of theaccounting firm
□Applicable √Not applicable
V. The Company's analysis and explanation on the reasons and effects of changes inaccounting policies, accounting estimates or corrections of major accounting errors(i) The Company's analysis and explanation on the reasons and effects of changes in
accounting policies and accounting estimates
□Applicable √Not applicable
(ii) The Company's analysis and explanation on the reasons and effects of major
accounting errors correction
□Applicable √Not applicable
(iii) Communication with the former accounting firm
□Applicable √Not applicable
(iv) Approval procedures and other notes
□Applicable √Not applicable
VI. Engagement and termination of engagement of accounting firm
Unit: RMB 10,000
| Now engaging | |
| Name of the engaged domestic accounting firm | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) |
| Remuneration of the engaged domestic | 200 |
| accounting firm | |
| Audit period of the engaged domestic accounting firm | 16 |
| Name | Remuneration | |
| Internal control auditing accounting firm | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) | 55 |
Statement on the engagement or termination of engagement of accounting firm
√Applicable □Not applicable
After deliberation at the 8th Meeting of the 9th Board of Directors of the Company held onApril 10, 2023, and the 2022 Shareholders' Meeting held on May 5, 2023, the Proposal on theRenewal of the Employment of the Accounting Firm was passed, and it was agreed to renew theemployment of Ernst&Young Huaming Certified Public Accountants (Special GeneralPartnership) as the Company's financial report and internal control audit institution for 2023.Please refer to the Announcement on the Renewal of Employment of Accounting Firm (L2023-011) released by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) onApril 11, 2023, and the Announcement on the Resolution of the 2022 Annual General Meetingof Shareholders (L2023-018) released on the Shanghai Stock Exchange website(www.sse.com.cn) on May 6, 2023.
Statement on replacing the accounting firm during the audit
□Applicable √Not applicable
Explanation of audit fees decreasing by more than 20% (including 20%) compared to theprevious year
□Applicable √Not applicable
VII. Situations at risk of delisting(i) Reasons for the delisting risk warning
□Applicable √Not applicable
(ii) The Company's proposed response measures
□Applicable √Not applicable
(iii) Termination of listing and reasons
□Applicable √Not applicable
VIII. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
IX. Material litigations and arbitrations
√ During the year, the Company had major litigations or arbitrations □ During the year, the Company did not have any major litigations or arbitrations
(i) Litigations and arbitrations have been disclosed in the temporary announcements and have had no further progresses
√Applicable □Not applicable
| Overview and type of matters | Query website |
| In December 2023, the Company received a civil judgment from the Zhejiang Provincial High People's Court regarding the dispute over the letter of credit between Zhejiang Branch of China Cinda Asset Management Co., Ltd. and the Company and Zhejiang Yiwu China Small Commodities City Trading Co., Ltd. (formerly a controlling subsidiary of the Company, now a joint-stock company, with the Company holding 35.8% of its shares). The appeal was dismissed and the original judgment upheld. | The specific content of the judgment can be found in the Announcement on the Progress of Litigation Involving the Company and Participating Subsidiaries disclosed by the Company on December 5, 2023 (L2023-056) |
(ii) Litigations and arbitrations that have not been disclosed in the temporary announcements or have had further progresses
√Applicable □Not applicable
Unit: RMB 10,000
| During the reporting period: | |||||||||
| Plaintiff (claimant) | Defendant (respondent) | Party bearing joint liabilities | Litigation or arbitration | Basic information of litigation (arbitration) | Value involved in litigation (arbitration) | Does the litigation (arbitration) cause estimated liabilities and the amount thereof | Status of litigation (arbitration) | Results of litigation (arbitration) and effect thereof | Enforcement of judgment (award) |
| Ningxia Shenghong Construction Engineering Co., Ltd. | Shizuishan Shengyuze Asset Management Co., Ltd., Yiwu China Commodity City Supply Chain Management Co., Ltd., the Company | No | Litigation | Dispute over construction project construction contract [(2022) N 0202 MC No. 4273] | 430.69 | No | Judgment has been made | 1. The defendant Shizuishan Shengyuze Asset Management Co., Ltd. shall pay the outstanding project payment of RMB 3,819,617 and interest of RMB 303,211, totaling RMB 4,122,828, to the plaintiff Ningxia Shenghong Construction Engineering Co., Ltd. within 15 days after this judgment takes effect; 2. Other claims of the plaintiff Ningxia Shenghong Construction Engineering Co., Ltd. were dismissed | |
| Zhejiang China Small Commodities City Group Co., Ltd. CCC Hotel | Yiwu Junhuhui Entertainment Co., Ltd. | No | Litigation | Disputes over Housing Lease Contracts [(2023) Z 0782 M C No. 2728] | 203.97 | No | Judgment has been made | The defendant shall pay the plaintiff a penalty of RMB 88,387 within 30 days from the effective date of this judgment. | |
| Ying Jianhua | The Company, third party Shenzhen Pengrun Construction Group Co., Ltd. | No | Litigation | Dispute over construction project construction contract [(2022) Z 0782 MSQT No. 18007] | 836.31 | No | Appraisal in progress | ||
| Hebei Construction Engineering Group Co., | Haicheng Yiwu China Commodities City Investment | No | Litigation | Dispute over construction project construction | 7,431.59 | No | Undecided |
| Ltd. | Development Co., Ltd. | contract (2023) L 0381 MC No. 1585 | |||||||
| The Company | Luo Haiquan, Huang Shuiying; Third party: Longchuan Yuegang Industrial Co., Ltd. | No | Litigation | Dispute case involving shareholders harming the interests of company creditors [(2023) Y 1622 M C 2752] | 300 | No | Hearings have been held but no judgment has been made |
(iii) Other statements
□Applicable √Not applicable
X. Information of the Listed Company and its directors, supervisors, seniormanagement, controlling shareholder, and actual controller suspected of violationsof laws and regulations, penalties and rectification
□Applicable √Not applicable
XI. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving theCompany or its controlling shareholder or actual controller during the reporting period.
XII. Material related-party transactions(i) Related-party transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
√Applicable □Not applicable
The 10th Meeting of the 9th Board of Directors of the Company reviewed and approved theProposal on Project Construction Entrustment Management and Related Party Transactions,and agreed to sign an engineering project entrustment management contract with of ShangboYungu, a wholly-owned subsidiary of the Company’s controlling shareholder, CCCH,. Fordetails, please refer to the Announcement on Project Construction Entrustment Managementand Related Party Transactions (L2023-019) disclosed by the Company on the Shanghai StockExchange website (www.sse.com.cn) on May 12, 2023.
As of the end of the reporting period, the project was under construction.
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
| Related counterparty | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Price of related-party transaction | Amount of related-party transaction | Percentage in the amount of similar transactions (%) | Settlement method | Market price | Reasons for the large difference between the price of the transaction and reference market price |
| Yiwu China Commodities City Property Service Co., Ltd. | Controlling subsidiaries of controlling shareholders | Acceptance of labor service | Property service fee and greening maintenance fee | Market price | 181,414,943.66 | 181,414,943.66 | 77.20 | Bank transfer | 181,414,943.66 | / |
| Yiwu Security Service Co., Ltd. | Subsidiaries of controlling shareholder parent company | Acceptance of labor service | Security service fee | Market price | 17,321,354.13 | 17,321,354.13 | 7.37 | Bank transfer | 17,321,354.13 | / |
| CCCH | Controlling shareholders | Rent | Warehouse space rental | Market price | 15,025,937.62 | 15,025,937.62 | 6.39 | Bank transfer | 15,025,937.62 | / |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Controlling subsidiaries of controlling shareholders | Providing services | Construction fee | Market price | 11,048,288.61 | 11,048,288.61 | 4.70 | Bank transfer | 11,048,288.61 | / |
| Yiwu China Commodities City Property Service Co., Ltd. | Controlling subsidiaries of controlling shareholders | Sales of goods | Sales of goods | Market price | 4,153,162.42 | 4,153,162.42 | 1.77 | Bank transfer | 4,153,162.42 | / |
| Yourworld International Conference Center, | Branches of the controlling | Acceptance of labor service | Laundering fees | Market price | 2,627,096.60 | 2,627,096.60 | 1.12 | Bank transfer | 2,627,096.60 | / |
| subordinated to Yiwu Market Development Group | shareholder’s parent company | |||||||||
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Associates | Acceptance of labor service | Design fee | Market price | 2,440,943.96 | 2,440,943.96 | 1.04 | Bank transfer | 2,440,943.96 | / |
| Yourworld International Conference Center, subordinated to Yiwu Market Development Group | Branches of the controlling shareholder’s parent company | Other inflow | Entrusted management fees and license fees | Negotiated price | 954,484.23 | 954,484.23 | 0.41 | Bank transfer | 954,484.23 | / |
| Total | / | / | 234,986,211.23 | 100 | / | / | / | |||
| Details of large-value return of goods sold | ||||||||||
| Illustration on related-party transactions | Yiwu China Small Commodity City Property Service Co., Ltd. obtained the market property service and greening maintenance contract by participating in public bidding. | |||||||||
(ii) Related transactions in the acquisition or sale of assets or equity
1. Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB 10,000
| Related party | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Book value of transferred assets | Assessed value of transferred assets | Transfer price | Settlement method | Gains from asset transfer | The impact of transactions on the Company's operating results and financial condition | Reasons for significant differences between transaction price and book value or assessed value or market fair value |
| Zhijie Yuangang | Associated company | Equity transfer | Transfer of 60% equity of Yiwu Huanqiu Yida Logistics Co., Ltd. | Market price | 1,445.69 | 2,412 | 2,412 | Bank transfer | 966.31 | Realized an income of RMB 9.6631 million from transfer | This transaction was completed through public listing |
Explanation of related transactions arising from asset acquisition and saleFor details, please refer to Note VIII. Changes in the scope of consolidation
4. If any agreement on the operating results is involved, the achievement of operatingresults during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies,the Company's holding financial company and the related parties
□Applicable √Not applicable
(vi) Other
□Applicable √Not applicable
XIII. Material contracts and performance thereof(i) Trusteeship, contracting and leases
1. Hosting
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Renting
□Applicable √Not applicable
(ii) Guarantees
√Applicable □Not applicable
Unit: RMB 10,000
| External guarantees provided by the Company (excluding those provided for the subsidiaries) | |||||||||||||||
| Guarantor | Relationship between the guarantor and the Listed Company | The guaranteed | Amount of guarantee | Date of guarantee (signing date of the agreement) | Guarantee starting date | Guarantee maturity date | Type of guarantee | Collateral (if any) | Is the guarantee fulfilled in full | Is the guarantee overdue | Overdue amount of the guarantee | Counter guarantees | Is it a related-party guarantee | Related relationship | |
| The Company | The Company itself | Yiwu Shanglv | 4,575.49 | Dec 16, 2015 | Jul 1, 2015 | Dec 15, 2026 | Joint and several liability guarantee | No | No | No | NA | SCO provided a counter-guarantee | Yes | Joint venture | |
| Hangzhou Shangbo Nanxing | Wholly-owned subsidiary | House purchaser | 462.93 | Joint and several liability guarantee | No | No | No | NA | No | Not applicable | |||||
| Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | -4,926.14 | ||||||||||||||
| Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 5,038.42 | ||||||||||||||
| The guarantee of the Company and its subsidiaries to the subsidiaries | |||||||||||||||
| Amount of guarantees provided for subsidiaries during the reporting period | - | ||||||||||||||
| Balance of guarantees provided for subsidiaries at the end of the reporting period (B) | - | ||||||||||||||
| Total guarantees provided by the Company (including those provided for the subsidiaries) | |||||||||||||||
| Total amount of guarantees (A+B) | 5,038.42 |
| Ratio of the total amount of guarantees to the Company’s net assets (%) | 0.28 |
| Among them: | |
| Amount of guarantees provided for shareholders, actual controller and their related parties (C) | - |
| Amount of guarantees provided directly or indirectly for the debtors whose debt-to-asset ratio exceed 70% (D) | - |
| Portion of total amount of guarantees in excess of 50% of net assets (E) | - |
| Total (C+D+E) | - |
| Statement on the joint and several liability that may be assumed due to outstanding guarantees | NA |
| Statement on guarantees | 1. According to the resolution of the 15th Meeting of the 7th Board of Directors on July 1, 2015, the Group applied for a RMB 750 million loan with Agricultural Bank of China Yiwu Branch for Yiwu Shanglv and provided guarantees in accordance with the shareholding ratio. The guarantee method was joint liability guarantee, the highest guarantee amount was RMB 367.5 million and the guarantee term was11 years. As of December 31, 2023, Yiwu Shanglv actually borrowed RMB 93,377,327.02 from banks (December 31, 2022: RMB 193,468,056.42). According to the guarantee contract, the Group should bear a guarantee liability of RMB 45,754,890.24 (December 31, 2022: RMB 94,799,347.65) to Yiwu Branch of Agricultural Bank of China. SCO provided a counter-guarantee for this guarantee. 2. According to relevant regulations, the Group is required to provide mortgage loan guarantees to the bank for the sale of commercial housing before the purchaser of the housing has completed the property ownership certificate. The outstanding guarantee amount as of December 31, 2023 was RMB 4,629,333.68 (December 31, 2022: RMB 4,846,333.64). Those guarantees would be released after the issuance of the property ownership certificates and are thus little likely to incur losses. Therefore, the management believed that it was not necessary to make provision for the guarantees. |
(iii) Entrust the management of the cash assets of others
1. Entrusted financial management
(1) The totality of entrusted financial management
√Applicable □Not applicable
Unit: RMB 10,000
| Type | Source of funds | Amount | Undue balance | Overdue unrecovered amount |
| Bank financing products | Self-owned funds | 3,850.00 | - | - |
Other information
□Applicable √Not applicable
(2) Individual entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Entrusted financial management impairment provision
□Applicable √Not applicable
2. Entrusted Loan
(1) Total entrusted loan
√Applicable □Not applicable
Unit: RMB 10,000
| Type | Source of funds | Amount | Undue balance | Overdue unrecovered amount |
| Entrusted Loans | Self-owned funds | 4,800 | 4,800 | - |
Other information
√Applicable □Not applicable
In order to improve the efficiency of fund utilization, the indirectly controlled subsidiary of the Company, Zhejiang Yiwugou E-commerce Co., Ltd.,provided an entrusted loan of RMB 48 million to Yixia Chengdu International Trade City Co., Ltd. with its own funds, with a term of 2 years. For details,
please refer to the announcement on providing entrusted loans to external parties disclosed by the Company on the Shanghai Stock Exchange website(L2022-079).
(2) Single Entrusted Loan
√Applicable □Not applicable
Unit: RMB 10,000
| Trustee | Type of entrusted loan | Entrusted loan amount | Entrusted loan start date | Entrusted loan termination date | Fund sources Source | Fund sources Investment | Remuneration determination Method | Annualized rate of return | Expected return (If any) | Realistic gains or losses | Actual recovery | Statutory procedures | Entrusted loan program | Amount of provision for impairment (if any) |
| Yiwu Branch of Agricultural Bank of China Co., Ltd. | Bank entrusted loans | 4,800 | Dec 20, 2022 | Dec 19, 2024 | Self-owned funds | 5.5% | 528 | / | Yes | No |
Other information
□Applicable √Not applicable
(3) Entrusted loan impairment provision
□Applicable √Not applicable
3. Other information
□Applicable √Not applicable
(iv) Other material contracts
√Applicable □Not applicable
| No. | Name of contract | Contracting party | Contract price (RMB 10,000) |
| 1 | Contract for Entrusted Construction and Management of Global Digital Free Trade Center | The Company, Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 3045.57 |
| 2 | Construction Contract for Lot 1 of the Supporting and Landscape Greening Project of the New Import Market in Yiwu Comprehensive Bonded Zone | The Company, Zhejiang Baisha Construction Co., Ltd. | 2023.90 |
| 3 | Supplementary Agreement to the New Import Market of Yiwu Comprehensive Bonded Zone - South Zone Engineering Construction Contract (I) | The Company, Zhejiang Construction Engineering Group Co., Ltd. | 67963.69 |
| 4 | Construction Contract for Lot 2 of the Supporting and Landscape Greening Project of the New Import Market in Yiwu Comprehensive Bonded Zone | The Company, Yiwu Chengsheng Municipal Engineering Co., Ltd. | 1571.56 |
| 5 | Procurement Contract for Integrated Services of Yiwu International Trade City | Yiwu China Commodities City Information Technology Co., Ltd. and Yiwu Branch of China Telecom | 2558.00 |
The 8th Meeting of the 9th Board of Directors of the Company reviewed and approved the proposal on investing in the construction of the YiwuGlobal Digital Free Trade Center. For details, please refer to the Announcement on External Investment disclosed by the Company on the ShanghaiStock Exchange website (www.sse.com.cn) on April 11, 2023 (L2023-014).XIV. Description of progress in the use of raised funds
□Applicable √Not applicable
XV. Explanation on other major events that have a significant impact on investors' value judgments and investment decisions
√Applicable □Not applicable
During the reporting period, the Company continuously expanded its cooperation with commodity trading partners in the industrial chain, whilealso expanding its presence in the supply chain and big data fields. That was intended for consolidating the basic foundation of trade, deeplyexploring the commercial data value of the deep interaction between the small commodity industry chain and the supply chain, assisting Chinese
enterprises in going overseas, actively obtaining global trade increment, and empowering the upgrading of the small commodity industry. The specificstatus of strategic cooperation framework agreements signed is as follows:
(1) In the field of commerce and trade
| No. | Partner | Collaboration content | Signing time |
| 1 | Beijing Jingdong Century Trading Co., Ltd. | By means of joint marketing, opening "Yiwu Good Goods" collection stores, and organizing existing merchants of Yiwu China Commodities City to upload to the JD platform, the parties aim to build a multi-channel digital distribution system and enhance the brand value of Yiwu China Commodities City. | March 2023 |
| 2 | Shenzhen Transsion Holdings Co., Ltd. | Relying on the supply chain resources of Yiwu market and the local resources of Transsion Holdings in Africa, timely cooperation shall be carried out to help the brand of Yiwu market go global, and timely capital cooperation shall be carried out. | September 2023 |
| 3 | Tokyo Aucfan Co., Ltd., Japan | The parties shall fully leverage their respective advantages in industries, resources, business models, channels, and other aspects in their respective fields, actively promote cooperation in on-site commodity trade platforms, carry out online platform interoperability cooperation, and share online information. | July 2023 |
| 4 | Xinjiang Commercial Logistics (Group) Co., Ltd. | Based on the policy and resource advantages of both sides, the parties shall strengthen cooperation in the field of commercial logistics, and form a linkage advantage between the two regions. | November 2023 |
(2) Supply chain field
| No. | Partner | Collaboration content | Signing time |
| 1 | China National Building Materials International UAE Company | By creating a "New Energy Vehicle Parts Trading Center", a "New Energy Product Exhibition and Sales Center", optimizing transit logistics solutions, and improving supply chain financial services, the parties aim to optimize the development of | August 2023 |
| bilateral regional trade between Yiwu and Dubai, and deepen the complementarity of the industrial chain, supply chain, and value chain between the two regions. In this way, the parties will promote made-in-China products and Chinese brands going overseas to explore the Middle East and Africa markets, and practice national strategies such as the Belt and Road initiative, high-quality development of new energy industry, and internationalization of RMB. | |||
| 2 | Shanghai Waigaoqiao Group Co., Ltd. | The parties carry out strategic cooperation with the bonded areas of Yiwu Comprehensive Bonded Zone and Shanghai Pilot Free Trade Zone as the start point. The parties shall fully leverage the policy and location advantages of Yiwu Comprehensive Bonded Zone, leverage the professional service capabilities of Waigaoqiao Group in the field of import trade, jointly serve key foreign-funded enterprise customers, innovate basic services closely related to trade, including procurement, customs declaration, logistics, and foreign exchange settlement, cooperate to explore trade finance models, improve the level of trade services between both parties, and enrich the international trade business ecosystem. | February 2023 |
| 3 | Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. Damco Global Logistics (Shanghai) Co., Ltd | Three party integration of resources, complementary advantages, supported by the Yiwu China Commodities City supply and commercial flow, linked by the Zhijie Yuangang logistics supply chain platform, and guaranteed by the Maersk logistics transportation network, based on their respective core competitiveness, the parties shall carry out comprehensive and multi-level cooperation in digital supply chain services, end-to-end logistics, cross-border e-commerce, ESG and clean energy, logistics infrastructure, etc., establish a long-term, stable, and efficient communication mechanism, and jointly create an efficient, convenient, and | July 2023 |
economical global supply chain channel.
(3) Data value field
| No. | Partner | Collaboration content | Signing time |
| 1 | People Data Management (Beijing) Co., Ltd. | The parties shall integrate resources, complement each other's advantages, and support themselves with the storage resources of people's data. Taking the information flow of goods and commerce in Yiwu China Commodities City as the object, the parties shall carry out comprehensive and multi-level cooperation in data rights confirmation, data storage, data empowerment, data operation, etc., establish a long-term, stable, and efficient communication mechanism, and jointly build a trade data ecosystem. For details, please refer to the Announcement on Signing a Strategic Cooperation Framework Agreement (L2023-045) disclosed by the Company on the Shanghai Stock Exchange website on October 9, 2023. | September 2023 |
| 2 | Zhejiang Branch of China United Network Communications Limited | By giving full play to Yiwu China Commodities City’s first mover advantage in market trade and advantage in trade performance ecology with the chinagoods platform as the core and Zhejiang Branch of China Unicom’s advantages in the construction and operation of data centers, cloud computing, big data, artificial intelligence, network and data security, and rich international network resources, the parties shall cooperate in the construction and operation of the “Belt and Road” international data center that includes but is not limited to the new Internet data dedicated channel, green data center, cloud computing center, and intelligent computing center, and will jointly explore the market-oriented operation of data elements, support projects such as Yiwu | April 2023 |
| Cross-Border E-Commerce Industrial Park and Global Digital Trade Center, and promote the transformation of Yiwu market and the upgrading of trade business forms. For details, please refer to the Announcement on Foreign Investment disclosed by the Company on the Shanghai Stock Exchange website on April 25, 2023 (L2023-017) | |||
| 3 | Minying Holdings Limited | The parties shall jointly develop, construct and operate digital products based on high-quality cross-border communication services and innovative business services based on artificial intelligence applications, focus on expanding cooperation in new Internet data transmission, cross-border access, data analysis application platforms and other application fields, further improve the digital service system, promote trade with digital, and promote cross-border e-commerce development with trade; actively participate in and focus on supporting the construction of Yiwu Cross-border E-commerce Industrial Park, the Global Digital Trade Center, the “Belt and Road” International Data Center and other projects of Yiwu CCC, and promote the transformation of Yiwu market and the upgrading of trade business forms. | July 2023 |
Section VII. Changes in Shares and ShareholdersI. Changes in equity(i) Exhibition of changes in shares
1. Exhibition of changes in shares
Unit: 10,000 shares
| Before this change | Increase or decrease in the current period (+, -) | After this change | |||||||
| Qty. | Proportion (%) | New shares issued | Bonus shares | Shares converted from capital reserve | Other | Sub-total | Quantity | Proportion (%) | |
| I. Restricted shares | 4,286 | 0.78 | 0 | 0 | 0 | -1,564.125 | -1,564.125 | 2,721.875 | 0.5 |
| 1. Shares held by other domestic capitals | 4,286 | 0.78 | 0 | 0 | 0 | -1,564.125 | -1,564.125 | 2,721.875 | 0.5 |
| shares held by domestic natural persons | 4,286 | 0.78 | 0 | 0 | 0 | -1,564.125 | -1,564.125 | 2,721.875 | 0.5 |
| II. Unrestricted shares | 544,321.4176 | 99.22 | 0 | 0 | 0 | 1,390.125 | 1,390.125 | 545,711.5426 | 99.50 |
| 1. RMB-denominated common shares | 544,321.4176 | 99.22 | 0 | 0 | 0 | 1,390.125 | 1,390.125 | 545,711.5426 | 99.50 |
| III. Total number of shares | 548,607.4176 | 100 | 0 | 0 | 0 | -174 | -174 | 548,433.4176 | 100 |
2. Description of changes in shares
√Applicable □Not applicable
On November 20, 2023, due to some incentive objects no longer meeting the incentiveconditions, the Company repurchased and cancelled 1.74 million circulating shares restricted forsale.
3. The impact of changes in shares on financial indicators such as earnings per share
and net assets per share in the most recent year and the most recent period (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
√Applicable □Not applicable
Unit: 10,000 shares
| Shareholder | Number of restricted shares at the beginning of the year | Number of restricted shares released during the year | Number of increased restricted shares during the year | Number of restricted shares at the end of the year | Reasons for restriction on trade | Unlocking date |
| 322 incentive recipients subject to the first grant under the 2020 restricted stock incentive plan | 4,060 | 1,317.36 | - | 2,574.14 | Restricted stock incentives | The lock-up period is 24 months, 36 months and 48 months from the date when the registration of the reserved grant is completed. |
| 29 incentive recipients subject to the reserved grant under the 2020 restricted stock incentive plan | 226 | 72.765 | - | 147.735 | Restricted stock incentives | The lock-up period is 24 months, 36 months and 48 months from the date when the registration of the reserved grant is completed. |
| Total | 4,286 | 1,390.125 | - | 2,721.875 | / | / |
The Company's restricted stock incentive plan for 2020 was implemented until the end ofthe reporting period. A total of 75 incentive recipients no longer met the incentive conditionsdue to transfer, resignation, retirement, and other reasons. Their restricted stocks wererepurchased and cancelled by the Company. As of the end of the reporting period, there werea total of 351 remaining incentive recipients, holding a total of 27.21875 million sharesrestricted for sale.
II. Securities issuance and listing(i) Securities issuance as of the reporting period
√Applicable □Not applicable
Unit: 10,000 shares, Currency: RMB
| Types of stocks and their derivatives | Issue date | Issuing price (or interest rate) | Number of shares or bonds issued | Listing date | Number of shares or bonds approved for listed transaction | Transaction termination date |
| Common stock class | ||||||
| A share | January 15, 2021 | RMB 2.94 /share | 4,670 | January 15, 2021 | 4,670 | |
| A share | November 4, 2021 | RMB 2.39 / share | 234 | November 4, 2021 | 234 | |
| Bonds (including corporate bonds, corporate bonds, and non-financial corporate debt financing | ||||||
| instruments) | ||||||
| 22 YIWU CCC 01 | August 30, 2022 | 2.88% | 800 | September 8, 2022 | 800 | September 1, 2025 |
| 22 YIWU CCC 02 | September 20, 2022 | 2.88% | 700 | September 27, 2022 | 700 | September 22, 2025 |
Notes on the issuance of securities as of the reporting period (for bonds with different interestrates during the duration, please specify separately):
□Applicable √Not applicable
(ii) Changes in the total number of shares of the Company, the shareholder structure,and changes in the Company's assets and liabilities structure
□Applicable √Not applicable
(iii) Existing internal employee shares
□Applicable √Not applicable
III. Shareholders and actual controllers(i) Total number of shareholders
| Number of common shareholders as of the end of the reporting period | 175,645 |
| The total number of common shareholders (households) at the end of the previous month before the disclosure of the annual report | 140,804 |
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: share
| Shareholdings of the top ten shareholders (excluding shares lent through refinancing) | |||||||
| Shareholder (full name) | Change during the reporting period | Number of shares held at the end of the reporting period | Proportion (%) | Number of non-tradable shares held | Pledge, mark or freezing | Ownership of shareholder | |
| Status of shares | Qty. | ||||||
| Yiwu China Commodities City Holdings Limited | - | 3,038,179,392 | 55.40 | - | No | - | State-owned legal person |
| Zhejiang Zhecai Capital Management Co., Ltd. | - | 147,466,528 | 2.69 | - | No | - | State-owned legal person |
| Hong Kong Central Clearing Company Limited | 21,107,176 | 82,862,041 | 1.51 | - | No | - | Other |
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products -005L-CT001 Shanghai | 40,033,242 | 40,033,242 | 0.73 | - | No | - | Unknown |
| National Social Security Fund 116 Portfolio | 36,757,465 | 36,757,465 | 0.67 | - | No | - | Unknown |
| GAO Yaping | 32,261,566 | 32,261,566 | 0.59 | - | No | - | Domestic natural person |
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | -997,800 | 26,675,000 | 0.49 | - | No | - | Unknown |
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | -1,225,000 | 26,447,800 | 0.48 | - | No | - | Unknown |
| JIANG Shibo | 24,387,200 | 24,387,200 | 0.44 | - | No | - | Domestic natural person |
| GF Fund－Agricultural Bank of China－GF China Securities Financial Assets Management Scheme | -6,576,400 | 21,096,400 | 0.38 | - | No | - | Unknown |
| Shares held by top 10 holders of tradable shares | |||||||
| Shareholder | Number of tradable shares held | Type and quantity of shares | |||||
| Type | Qty. | ||
| Yiwu China Commodities City Holdings Limited | 3,038,179,392 | RMB-denominated common share | 3,038,179,392 |
| Zhejiang Zhecai Capital Management Co., Ltd. | 147,466,528 | RMB-denominated common share | 147,466,528 |
| Hong Kong Central Clearing Company Limited | 82,862,041 | RMB-denominated common share | 82,862,041 |
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products -005L-CT001 Shanghai | 40,033,242 | RMB-denominated common share | 40,033,242 |
| National Social Security Fund 116 Portfolio | 36,757,465 | RMB-denominated common share | 36,757,465 |
| GAO Yaping | 32,261,566 | RMB-denominated common share | 32,261,566 |
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | 26,675,000 | RMB-denominated common share | 26,675,000 |
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | 26,447,800 | RMB-denominated common share | 26,447,800 |
| JIANG Shibo | 24,387,200 | RMB-denominated common share | 24,387,200 |
| GF Fund－Agricultural Bank of China－GF China Securities Financial Assets Management Scheme | 21,096,400 | RMB-denominated common share | 21,096,400 |
| Explanation on the relationship or concerted action between the above shareholders | Zhejiang Provincial Finance Development Co., Ltd., the controlling shareholder of Zhejiang Zhecai Capital Management Co., Ltd., holds 9.44% of the shares of Yiwu State-owned Capital Operation Co., Ltd., the controlling shareholder of Yiwu China Commodity City Holding Limited, the controlling shareholder of Yiwu Market Development Group Co., Ltd. | ||
| Explanation on the preferred shareholders whose voting rights had been restituted and the quantity of shares held thereby | No | ||
The top ten shareholders participating in the lending of shares through refinancing business
□Applicable √Not applicable
Changes in the top ten shareholders compared to the previous period
√Applicable □Not applicable
Unit: share
| Changes in the top ten shareholders compared to the end of the previous period | |||||
| Shareholder name (full name) | New addition /withdrawal during this reporting period | At the end of the period, the number of shares lent through refinancing and not yet returned | At the end of the period, the number of shares held in the ordinary account and credit account of shareholders as well as the number of shares lent through refinancing and not yet returned | ||
| Total | Proportion (%) | Total | Proportion (%) | ||
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products -005L-CT001 Shanghai | New addition | - | - | 40,033,242 | 0.73 |
| National Social Security Fund 116 Portfolio | New addition | - | - | 36,757,465 | 0.67 |
| GAO Yaping | New addition | - | - | 32,261,566 | 0.59 |
| JIANG Shibo | New addition | - | - | 24,387,200 | 0.44 |
| China-Europe Fund - Agricultural Bank of China – China-Europe China Securities Financial Asset Management Plan | Withdrawal | - | - | - | - |
| E Fund - Agricultural Bank of China - E Fund China Securities Financial Asset Management Plan | Withdrawal | - | - | - | - |
| Agricultural Bank of China Limited - CSI 500 Trading Open Index Securities Investment Fund | Withdrawal | 5,714,000 | 0.10 | 19,627,919 | 0.36 |
| Yinhua Fund - Agricultural Bank of China - Yinhua China Securities Financial Asset Management Plan | Withdrawal | - | - | 15,341,127 | 0.28 |
Number of shares held by the top 10 shareholders subject to trading restrictions and thetrading restrictions
□Applicable √Not applicable
(iii) Strategic investors or general legal persons became the top 10 shareholders due to
the placement of new shares.
□Applicable √Not applicable
IV. Controlling shareholder and actual controller(i) Controlling shareholder1 Legal person
√Applicable □Not applicable
| Name | Yiwu China Commodities City Holdings Limited |
| The person in charge or legal representative of the unit | ZHAO Wenge |
| Date of establishment | October 29, 2019 |
| Main business | State-owned shareholding platform |
| Shareholdings of other domestic and overseas listed companies that hold or participate in shares during the reporting period | No |
| Other statements | No |
2 Natural person
□Applicable √Not applicable
3 Special statement that the Company does not have a controlling shareholder
□Applicable √Not applicable
4 Explanation on Changes in Controlling Shareholders During the Reporting Period
□Applicable √Not applicable
5 Block diagram of the property rights and control relationship between the Company
and the controlling shareholder
√Applicable □Not applicable
(ii) The actual controller1 Legal person
√Applicable □Not applicable
| Name | State-owned Assets Supervision and Administration Office of the People’s Government of Yiwu |
| The person in charge or legal | Wang Chenggang |
55.40%
| representative of the unit | |
| Date of establishment | March 26, 2009 |
| Main business | State-owned capital management and state-owned equity management |
| Shareholdings of other domestic and overseas listed companies that hold or participate in shares during the reporting period | No |
| Other statements | No |
2 Natural person
□Applicable √Not applicable
3 Special explanation that the Company does not have an actual controller
□Applicable √Not applicable
4 Explanation on changes in the Company's control during the reporting period
□Applicable √Not applicable
5 Block diagram of the property rights and control relationship between the Company
and the actual controller
√Applicable □Not applicable
6 The actual controller controls the Company through trust or other asset management
methods.
□Applicable √Not applicable
(iii) Other introductions of controlling shareholders and actual controllers
□Applicable √Not applicable
V. The controlling shareholder or the largest shareholder of the Company and itspersons acting in concert have accumulatively pledged shares that account for morethan 80% of the Company's shares held by them
□Applicable √Not applicable
VI. Other corporate shareholders holding more than 10% of the shares
□Applicable √Not applicable
VII. Description of share restriction reduction
□Applicable √Not applicable
VIII. The specifics of implementation of share repurchase during the reporting period
□Applicable √Not applicable
Preferred Shares
□Applicable √Not applicable
Section VIII. BondsI. Corporate bonds, corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million
| Name of bond | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Trading venue | Whether there is a risk of terminating the transaction in the stock market |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 1) | 22 YIWU CCC 01 | 137740 | September 1, 2022 | September 1, 2022 | September 1, 2025 | 8 | 2.88 | Simple interest is calculated, the interest payment frequency is annual, and the principal is repaid once due. | Shanghai Stock Exchange | No |
| Zhejiang China Commodity City Group | 22 YIWU CCC 02 | 137815 | September 22, 2022 | September 22, 2022 | September 22, 2025 | 7 | 2.88 | Simple interest is calculated, the | Shanghai Stock Exchange | No |
| Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 2) | interest payment frequency is annual, and the principal is repaid once due. |
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
| Name of bond | Description of interest payment |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 1) | On September 1, 2023, the Company paid all holders of "22 Yiwu CCC 01" the interest from September 1, 2022 to September 1, 2023 on time. |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 2) | On September 22, 2023, the Company paid all holders of "22 Yiwu CCC 02" the interest from September 22, 2022 to September 22, 2023 on time. |
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Intermediaries providing services for bond issuance and duration business
| Intermediary name | Office address | Name of the Signing Certified Public Accountants | Contact person | Contact number |
| CITIC Securities Co., Ltd. | CITIC Securities Building, No. 48 Liangmaqiao Road, Chaoyang District, Beijing | / | ZHANG Yifan | 0571-85783754 |
| Guohao Law Firm (Hangzhou) | Guohao Lawyer Building, Nos. 2 and 15, Zone B, Baita Park, Laofuxing Road, Hangzhou City, Zhejiang Province | / | YANG Beiyang | 0571-85775888 |
| Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. | 14/F Huasheng Tower, No.398 Hankou Road, Shanghai | / | ZHOU Wenzhe | (021)63501349 |
Changes to the above intermediaries
□Applicable √Not applicable
4. Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 100 million
| Name of bond | Total amount of funds raised | Amount used | Amount unused | Operation of the special account for raised funds (if any) | Rectification of illegal use of raised funds (if any) | Whether it is consistent with the purpose, use plan and other agreements promised in the prospectus |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 1) | 8 | 8 | - | No | No | No |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 2) | 7 | 7 | - | No | No | No |
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reportingperiod
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the Zhejiang ChinaCommodities City Group Co., Ltd. Credit Rating Report [XSJQP (2023) 020239] on June 27,2023. According to the report, the Company's main credit rating is AAA, and the rating outlookis stable.
6. The implementation and changes of guarantees, debt repayment plans and other debtrepayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
7. Other statement on corporate bonds
□Applicable √Not applicable
(iii) Non-financial corporate debt financing instruments in the inter-bank bond market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million
| Name of bond | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Trading venue | Investor appropriate arrangements (if any) | Trade mechanism | Whether there is a risk of terminating the transaction in the stock market |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 1) | 22 Zhejiang Yiwu CCC MTN001 | 102280347 | Feb-22-2022 to Feb-23-2022 | Feb 24, 2022 | Feb 24, 2025 | 10 | 3.29 | Annual interest payment, principal repayment at maturity | Interbank market | No | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 2) | 22 Zhejiang Yiwu CCC MTN002 | 102280660 | Mar-25-2022 to Mar-28-2022 | Mar 29, 2022 | Mar 29, 2025 | 5 | 3.57 | Annual interest payment, principal repayment at maturity | Interbank market | No | No | |
| Zhejiang China Commodities City Group Co., Ltd.'s 2022 MTN (Issue 3) | 22 Zhejiang Yiwu CCC MTN003 | 102281584 | Jul 18, 2022 to Jul 19, 2022 | Jul 20, 2022 | Jul 20, 2025 | 5 | 3.00 | Annual interest payment, principal repayment at maturity | Interbank market | No | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2023 Super Short-term Financing Bond (Issue 3) | 23 Zhejiang Yiwu CCC SCP003 | 012382295 | From June 16, 2023 to June 19, 2023 | Jun 20, 2023 | Mar 15, 2024 | 10 | 2.68 | One-time repayment of principal and interest at maturity. | Interbank market | No | No |
| Zhejiang China Commodities City Group Co., Ltd. 2023 Super Short-term Financing Bond (Issue 4) | 23 Zhejiang Yiwu CCC SCP004 | 012383426 | Sept 11, 2023 to Sep 13, 2023 | Sep 13, 2023 | Apr 10, 2024 | 10 | 2.72 | One-time repayment of principal and interest at maturity. | Interbank market | No | No | |
| Zhejiang China Commodities City Group Co., Ltd. 2023 Super Short-term Financing Bond (Issue 5) | 23 Zhejiang Yiwu CCC SCP005 | 012384038 | Nov 6, 2023 to Nov 7, 2023 | Nov 8, 2023 | Aug 2, 2024 | 10 | 2.78 | One-time repayment of principal and interest at maturity. | Interbank market | No | No |
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
| Name of bond | Description of interest payment |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 1) | On February 24, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN001" the interest from February 24, 2022 to February 24, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 2) | On March 29, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN002" the interest from March 29, 2022 to March 29, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.'s 2022 MTN (Issue 3) | On July 20, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN003" the interest from July 20, 2022 to July 20, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 Super | On May 19, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP005" the interest from September 21, 2022 to May 19, 2023 on time. |
| Short-term Financing Bond (Issue 8) | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 Super Short-term Financing Bond (Issue 6) | On June 23, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP006" the interest from October 26, 2022 to June 23, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 Super Short-term Financing Bond (Issue 7) | On March 22, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP007" the interest from November 22, 2022 to March 22, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.’s 2023 Super Short-term Financing Bond (Issue 1) | On September 15, 2023, the Company paid the holders of "23 Zhejiang Yiwu CCC SCP001" the interest from March 20, 2023 to September 15, 2023 on time. |
| Zhejiang China Commodities City Group Co., Ltd.’s 2023 Super Short-term Financing Bond (Issue 2) | On November 10, 2023, the Company paid the holders of "23 Zhejiang Yiwu CCC SCP002" the interest from May 17, 2023 to November 10, 2023 on time. |
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Intermediaries providing services for bond issuance and duration business
| Intermediary name | Office address | Name of the signing certified public accountants | Contact person | Contact number |
| China Securities Co., Ltd. | Building 4, No. 66 Anli Road, Chaoyang District, Beijing | / | ZHOU Dongpeng | 19821224808 |
| Shanghai Pudong Development Bank Co., Ltd. | No.12 Zhongshan East 1st Road, Shanghai | / | XU Haokang | 13732437619 |
| Agricultural Bank of China Limited | No. 69 Jianguomen Inner Street, Dongcheng District, Beijing | / | JIN Leijun | 13676813141 |
| Industrial and Commercial Bank of China Limited | No. 55 Fuxingmennei Street, Xicheng District, Beijing | / | CAI Sixuan | 13626693988 |
| ZheShang Bank Co., Ltd. | 1788 Hongning Road, Xiaoshan District, Hangzhou City, Zhejiang Province | / | CHEN Guoyang | 13757985757 |
| China Construction Bank Corporation | No. 25 Jinrong Street, Xicheng District, Beijing | / | WU Yanting | 15067057702 |
| Bank of Ningbo Co., Ltd. | No. 345, Ningdong Road, Yinzhou District, Ningbo City, Zhejiang Province | / | CHEN Dan | 13566797625 |
Changes to the above intermediaries
□Applicable √Not applicable
4. Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 100 million
| Name of bond | Total amount of funds raised | Amount used | Amount unused | Operation of the special account for raised funds (if any) | Rectification of illegal use of raised funds (if any) | Whether it is consistent with the purpose, use plan and other agreements promised in the prospectus |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 1) | 10 | 10 | - | NA | NA | Yes |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 2) | 5 | 5 | - | NA | NA | Yes |
| Zhejiang China Commodities City Group Co., Ltd.'s 2022 MTN (Issue 3) | 5 | 5 | - | NA | NA | Yes |
| Zhejiang China Commodities City Group Co., Ltd.’s 2023 Super Short-term Financing Bond (Issue 3) | 10 | 10 | - | NA | NA | Yes |
| Zhejiang China Commodities City Group Co., Ltd. 2023 Super Short-term Financing Bond (Issue 4) | 10 | 10 | - | NA | NA | Yes |
| Zhejiang China Commodities City Group Co., Ltd. 2023 Super Short-term Financing Bond (Issue 5) | 10 | 10 | - | NA | NA | Yes |
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reportingperiod
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the "ZhejiangChina Commodities City Group Co., Ltd. Credit Rating Report" [New Century EnterpriseReview (2023) 020239] on June 27, 2023. The Company's main credit rating is AAA. Therating outlook is stable.
6. The implementation and changes of guarantees, debt repayment plans and other debt
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
7. Explanation on other situations relevant to non-financial corporate debt financing
instruments
□Applicable √Not applicable
(iv) During the reporting period, the Company's loss in the scope of consolidated
statements exceeded 10% of its net assets as of the the end of the previous year.
□Applicable √Not applicable
(v) Interest-bearing debts other than bonds overdue at the end of the reporting period
□Applicable √Not applicable
(vi) The impact of violations of laws and regulations, company articles of association,information disclosure management system, and provisions or commitments in the bondprospectus on the rights and interests of bond investors during the reporting period
□Applicable √Not applicable
(vii) The Company's accounting data and financial indicators for the past 2 years asof the end of the reporting period
√Applicable □Not applicable
Unit: RMB 10,000
| Major indicator | 2023 | 2022 | YoY change (%) | Reasons for change |
| Net profits attributable to shareholders of the Listed Company with non-recurring items excluded | 246,868.60 | 176,508.76 | 39.86 | Mainly due to a year-on-year increase of RMB 1.571 billion in net profit attributable to shareholders of the listed company, and a year-on-year increase of RMB 868 million in non-recurring gains and losses |
| Current ratio | 47.66% | 42.33% | Up 5.33 ppt | |
| Quick ratio | 38.57% | 31.61% | Up 6.96 ppt | |
| Debt-to-asset ratio (%) | 51.12 | 52.41 | Down 1.29 ppt | |
| EBITDA to total debt ratio | 0.48 | 0.29 | 65.52 | |
| Interest coverage ratio | 12.91 | 5.09 | 153.63 | |
| Cash interest protection multiple | 7.75 | 6.60 | 17.48 | |
| EBITDA-to-interest coverage ratio | 16.20 | 7.80 | 107.71 | |
| Loan repayment rate (%) | 100 | 100 | - | |
| Interest payment rate (%) | 100 | 100 | - |
II. Convertible corporate bonds
□Applicable √Not applicable
Section IX. Financial ReportI. Auditor’s report
√Applicable □Not applicable
Ernst & Young Hua Ming (2024)S Z No. 70009137-B01Zhejiang China Commodities City Group Co., Ltd.
All the shareholders of Zhejiang China Commodities City Group Co., Ltd.
1. Audit opinion
We have audited the financial statements of Zhejiang China Commodities City GroupCo., Ltd., including the consolidated and company balance sheet as of December 31, 2023,the consolidated and company income statement, statement of changes in shareholders'equity, cash flow statement, and related notes to the financial statements for the year 2023.
We believe that the attached financial statements of Zhejiang China Commodities CityGroup Co., Ltd. have been prepared in accordance with the Accounting Standards forBusiness Enterprises in all material respects, and fairly reflect the consolidated andcompany financial position of Zhejiang China Commodities City Group Co., Ltd. as ofDecember 31, 2023, as well as the consolidated and company operating results and cashflows for the year then ended.
2. Basis of audit opinion
We conducted our audit in accordance with the Auditing Standards for Chinese CertifiedPublic Accountants. The section “CPAs’ Responsibility for Audit of Financial Statements” inthe audit report further describes on our responsibilities under these standards. Inaccordance with the CPA Code of Ethics in China, we are independent of Zhejiang ChinaCommodities City Group Co., Ltd. and have performed other responsibilities in respect ofprofessional ethics. We believe that the audit evidence we have acquired is sufficient andeffective, providing a reasonable basis for our opinion.
3. Key audit matters
Key audit matters are matters that we believe are the most important matters for theaudit of the financial statements for 2018 based on professional judgment. The response tosuch matters is based on the background of auditing the financial statements as a wholeand forming an audit opinion. We do not express independent opinions on such matters.This was also the background for our description for how every matter below was respondedin the audit.
We have fulfilled the responsibilities described in the "Certified Accountants'Responsibilities for the Audit of Financial Statements" section of this report, includingthose related to these key audit matters. Correspondingly, our audit work included theimplementation of audit procedures designed to deal with the assessed risk of materialmisstatement in the financial statements. The results of our audit procedures, including theprocedures performed in response to the following key audit matters, provide a basis forthe expression of the audit opinion in the financial statements as a whole.
3. Key audit matters (continued)
| Key audit matters: | Audit response to the matter: |
| Impairment of non-goodwill long-term assets with certain useful life | |
| On December 31, 2023, the book value of non-goodwill long-lived assets (hereinafter collectively referred to as "long-term assets") such as fixed assets, investment real estate, land use rights, construction in progress, right-of-use assets and long-term prepaid expenses attributable to the market and supporting hotels, exhibition halls and business buildings of Zhejiang China Commodities City Group Co., Ltd. was RMB 19.78998 billion, accounting for 55% of the total consolidated assets of Zhejiang China Commodities City Group Co., Ltd. Zhejiang China Commodities City Group Co., Ltd. needs to review the recoverable amount of assets or asset groups when identifying whether there are signs of impairment in the above-mentioned long-term assets and conducting impairment tests on long-term assets with signs of impairment. The management needs to make significant judgments and estimates to determine the key assumptions used in predicting the present value of future cash flows, such as sales revenue, gross profit, operating costs, disposal value prediction at the end of the useful life of related assets, and discount rate. The evaluation process is complex, so we identify them as key audit items. The relevant information has been disclosed in Note V. 40 and Note VII. 20, 21, 22, 25, 26, and 28 to the financial statements. | During the audit process, our procedures for assessing the impairment of non-goodwill long-term assets with a useful life include: 1. Based on our understanding of the business of the Company and its subsidiaries and the provisions of the Enterprise Accounting Standards, evaluate the management's identification of each asset group and the judgment of impairment signs for each asset group; 2. With the assistance of internal valuation experts, we assessed the reasonableness of the major assumptions and evaluation methods used by the Group management, like discount rates; 3. We assessed the reasonableness of key assumptions such as estimated sales income, gross profit, operating costs, and disposal value predictions at the end of the useful life of related assets in the future years, and checked basic data on the present value of expected future cash flows with relevant supporting evidence. 4. We compared and analyzed the actual performance of the current year with the predicted performance of the previous year; 5. We have checked the adequacy and completeness of the relevant disclosures in the notes to the financial statements of Zhejiang China Commodities City Group Co., Ltd. |
3. Key audit matters (continued)
| Key audit matters: | Audit response to the matter: |
| Recognition of revenue from sales of goods | |
| The operating revenue of Zhejiang China Commodities City Group Co., Ltd. mainly comes from commodity sales, shop use right and supporting services for operation, hotel accommodation and catering services, leasing business, etc., among which commodity sales revenue accounts for a relatively high proportion. In 2023, the operating revenue of the Group was RMB 11.29969 billion, of which the sales revenue of goods was RMB 6.80806 billion, accounting for 60% of the operating revenue. The group recognizes incomes when it has fulfilled its performance obligations in the contract, that is, the customer has acquired the control over the relevant goods or services. Since revenue is one of the key performance indicators of the Group, there may be an inherent risk that the management of the Group may achieve specific goals or expectations through inappropriate revenue recognition. We identified the revenue recognition of the Group's merchandise sales business as a key audit matter. For relevant information, please refer to Note V. Significant Accounting Policies and Estimates and Note VII. 61 to the consolidated financial statements. | For the recognition of revenue from sales of goods, our audit procedures mainly include: 1. We have understood and evaluated the design effectiveness of key controls in the management process related to sales of goods business revenue, and tested its operational effectiveness; 2. We select a sample to check the sales contract, identify the terms and conditions of the contract related to the transfer of control of the sold goods, and evaluate whether the timing of the revenue recognition of your group complies with the requirements of the Accounting Standards for Business Enterprises; 3. We obtained and carried out detailed testing by means of sampling, and reviewed supporting documents related to revenue recognition, including orders, receipt records, logistics documents, bank receipts, invoices, and import and export data of the electronic port data system, etc.; 4. According to the characteristics and nature of customer transactions, we select samples to confirm the amount of sales revenue and the balance of receivables to customers; 5. We analyzed fluctuations in revenue, cost, and gross profit, and compared them with the gross profit margin of companies in the same industry to evaluate the rationality of changes in revenue-related indicators; 6. We conducted background checks and visits to important customers in the sales of goods; 7. We used a sampling method to check the sales revenue confirmed before and after the balance sheet date to supporting documents such as customer receipts to assess whether the sales revenue is recognized in the appropriate period; and 5. We checked the adequacy and completeness of the relevant disclosures of the Group in the notes to the financial statements. |
4. Other information
Zhejiang China Commodities City Group Co., Ltd.’s management is responsible for otherinformation. Such information includes the information covered by the annual report, but thefinancial statements and the audit report provided by us are excluded.
Our audit opinion released in the financial statements do not cover other information andwe do not release any form of assurance conclusion on other information.
Our responsibility is to read other information in conjunction with our audit of the financialstatements. During the process, we consider whether there is a material inconsistency orother material misstatement in the financial statements with the knowledge acquired by usduring the audit process.
Based on the work we have performed, if we determine that there is a materialmisstatement of other information, we should report the fact. We have nothing to report inthis aspect.
5. Responsibility of management and governance for financial statements
The management is responsible for preparing financial statements in accordance withthe provisions of the Accounting Standards for Business Enterprises to achieve fairreflection, and designing, implementing and maintaining necessary internal controlsto prevent these financial statements from material misstatement arising from fraud or error.
During preparing the financial statements, the management is responsible for assessingthe sustainability management capabilities of Zhejiang China Commodities City Group Co.,Ltd., disclosing, as applicable, going-concern-related matters and applying the going-concern assumption unless the management plans to liquidate Zhejiang China CommoditiesCity Group Co., Ltd. and discontinue operations or has no other realistic choices.
The governance is responsible for supervising the financial reporting process ofZhejiang China Commodities City Group Co., Ltd.
6. Certified Public Accountants’ responsibility for audit of financial statements
Our goal is to obtain reasonable assurance about whether the financial statements arefree from material misstatement caused by fraud or error and express an opinion on thesefinancial statements based on our audits. The reasonable assurance is a guarantee at a highlevel, but there is no guarantee that an audit performed in accordance with the auditingstandards will always identify existing material misstatement. Misstatements may be causedby fraud or error. Misstatement is generally considered to be material if it is reasonablyexpected that the misstatement, alone or aggregated, may affect the financial decision madeby the users of the financial statements based on the financial statements.
We applied professional judgment and professional skepticism during conducting auditwork in accordance with the Auditing Standards for CPA while performing following works:
(1) Identifying and evaluating the risk of material misstatements of financial
statements for fraud or error designing and implementing audit procedures todeal with these risks and obtaining adequate and appropriate audit evidence asa basis for release of our audit opinion. As fraud may involve collusion, forgery,
willful omission, misrepresentation or override of internal control, the risk of notdiscovering a material misstatement due to fraud is higher than the risk of notdiscovering a material misstatement resulting from an error.
(2) Understanding the internal control related to the audit in order to design the
appropriate audit procedures.
(3) Evaluating the appropriateness of the accounting policies selected by
management level and the reasonableness of accounting estimates and relateddisclosures.
(4) Concluding the appropriateness of management level’s use of the going concern
assumption while drawing a conclusion as to whether there is any materialuncertainty about the issues or circumstances that may cause major doubtsabout the ability of the Zhejiang China Commodities City Group Co., Ltd. tocontinue as a going concern on basis of the audit evidence acquired. If weconclude that there is a significant uncertainty, the auditing standards require usto remind user of the statements of the relevant disclosures in the financialstatements in the audit report. If the disclosures are inadequate, we shouldrelease an unqualified opinion. Our conclusion is based on the informationavailable by the date of the audit report. However, future events or circumstancesmay result in Zhejiang China Commodities City Group Co., Ltd. being unable tocontinue as a going concern.
(5) Evaluating the overall presentation, structure and content (including disclosure)
of the financial statements as well as whether the financial statements are a fairreflection of the related transactions and matters.
(6) Obtaining adequate and appropriate audit evidence on the financial information
of the entities or business activities in Zhejiang China Commodities City GroupCo., Ltd. to express an opinion on the financial statements. We are responsiblefor directing, supervising and implementing the Group’s audit and assume fullresponsibility for the audit opinion.
6. The Responsibility of Certified Public Accountants for Auditing FinancialStatements (Continued)
We have communicated with the governance on the matters such as the scope andtiming of audit and major audit findings, including the notable defects of internal controlidentified in our audit.
We also provided a statement to the governance that we had complied with theprofessional ethics requirements related to independence, and communicated with thegovernance all relationships and other matters that may be reasonably believed to affect ourindependence, and related preventive measures (if applicable) .
In the matters communicated with the governance, we determined which matters shouldbe the most important to the audit of the financial statements of the current period, andshould constitute the key audit matters accordingly. We described such matters in the auditreport, unless laws and regulations had prohibited public disclosure of these matters, or inrare cases, we determined that such matters should not be communicated in the audit reportif the negative consequences of communicating a matter in the audit report are reasonablyexpected to outweigh the public interests.
| Ernst & Young Hua Ming Certified Public Accountants (special general partnership) | Chinese Certified Public Accountant: TAN Chaohui (Project Partner) | |
| Chinese Certified Public Accountant: LING Yuehan | ||
| Beijing, China | April 15, 2024 | |
II. Financial statements
Consolidated Balance SheetDecember 31, 2023Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Note | December 31, 2023 | December 31, 2022 |
| Current assets: | |||
| Cash and cash equivalents | 2,922,735,320.61 | 1,991,298,971.30 | |
| Held-for-trading financial assets | 15,130,895.00 | 62,331,000.66 | |
| Accounts receivable | 592,857,795.09 | 210,750,725.36 | |
| Prepayments | 986,062,615.10 | 606,057,048.25 | |
| Other receivables | 115,279,387.63 | 419,398,092.62 | |
| Inventory | 1,247,244,380.91 | 1,330,351,243.87 | |
| Other current assets | 665,132,672.86 | 634,209,950.69 | |
| Total current assets | 6,544,443,067.20 | 5,254,397,032.75 | |
| Non-current assets: | |||
| Debt investments | 48,073,333.34 | 48,079,561.64 | |
| Long-term receivables | 278,026,679.25 | 278,299,600.73 | |
| Long-term equity investment | 7,022,779,506.25 | 6,033,472,919.92 | |
| Other equity instruments investment | 556,897,379.17 | 499,200,803.85 | |
| Other non-current financial assets | 1,421,569,904.19 | 1,500,307,562.13 | |
| Property investment | 4,144,209,365.57 | 2,851,643,180.42 | |
| Fixed assets | 4,940,523,363.51 | 5,220,882,784.47 | |
| Construction in progress | 3,955,959,200.32 | 2,860,064,818.36 | |
| Right-of-use assets | 180,873,833.84 | 217,702,910.81 | |
| Intangible assets | 6,238,384,501.96 | 6,461,849,690.36 | |
| Development expenses | 18,648,441.93 | 4,660,995.87 | |
| Goodwill | 284,916,367.87 | 284,916,367.87 | |
| Long-term prepaid expenses | 330,032,050.64 | 306,925,970.89 | |
| Deferred income tax assets | 115,356,912.59 | 150,346,801.31 | |
| Other non-current assets | 138,253,316.00 | 138,253,316.00 | |
| Total non-current assets | 29,674,504,156.43 | 26,856,607,284.63 | |
| Total assets | 36,218,947,223.63 | 32,111,004,317.38 | |
| Current liabilities: | |||
| Short-term borrowings | 1,619,804,888.91 | 1,059,287,361.11 | |
| Accounts payable | 1,390,254,849.27 | 1,191,314,404.15 | |
| Advances from customers | 602,364,396.64 | 885,993,269.48 | |
| Contract liabilities | 4,066,579,965.73 | 3,991,038,021.56 | |
| Payroll payable | 148,473,258.54 | 183,135,314.51 | |
| Tax payable | 348,185,249.71 | 214,998,424.41 | |
| Other payables | 1,862,720,723.00 | 1,325,596,105.43 | |
| Non-current liabilities due within one year | 179,140,794.24 | 86,852,293.01 | |
| Other current liabilities | 3,514,924,439.85 | 3,473,907,027.00 | |
| Total current liabilities | 13,732,448,565.89 | 12,412,122,220.66 | |
| Non-current liabilities: | |||
| Long-term borrowings | 862,798,863.03 | 404,500,000.00 | |
| Bonds payable | 3,498,452,484.47 | 3,497,416,819.75 | |
| Lease liabilities | 176,832,206.26 | 206,623,735.97 | |
| Estimated liabilities | - | 110,620,306.10 | |
| Deferred income | 160,432,656.23 | 103,582,129.94 | |
| Deferred income tax liabilities | 84,044,926.48 | 95,042,722.31 | |
| Total non-current liabilities | 4,782,561,136.47 | 4,417,785,714.07 | |
| Total liabilities | 18,515,009,702.36 | 16,829,907,934.73 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (share capital) | 5,484,334,176.00 | 5,486,074,176.00 | |
| Capital reserve | 1,666,882,087.60 | 1,651,146,033.96 | |
| Less: treasury stocks | 74,367,173.75 | 119,483,675.00 | |
| Other comprehensive income | 23,394,697.32 | -24,008,473.60 | |
| Surplus reserve | 1,879,651,431.02 | 1,616,083,136.73 | |
| General risk reserve | 4,893,646.97 | 1,038,991.13 | |
| Undistributed profits | 8,703,604,953.04 | 6,651,440,591.35 | |
| Total equity attributable to owners (shareholders) of the parent company | 17,688,393,818.20 | 15,262,290,780.57 | |
| Minority interest | 15,543,703.07 | 18,805,602.08 | |
| Total owners’ equity (or shareholders’ equity) | 17,703,937,521.27 | 15,281,096,382.65 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 36,218,947,223.63 | 32,111,004,317.38 | |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Balance Sheet of Parent Company
December 31, 2023Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Note | December 31, 2023 | December 31, 2022 |
| Current assets: | |||
| Cash and cash equivalents | 2,265,528,812.87 | 1,439,042,451.56 | |
| Accounts receivable | 33,941,436.69 | 22,032,390.71 | |
| Prepayments | 12,620,700.86 | 11,055,123.31 | |
| Other receivables | 12,892,088.01 | 329,607,469.39 | |
| Inventory | 5,231,744.36 | 4,599,032.34 | |
| Other current assets | 3,970,347,163.03 | 3,650,862,939.52 | |
| Total current assets | 6,300,561,945.82 | 5,457,199,406.83 | |
| Non-current assets: | |||
| Long-term receivables | 31,863,990.46 | 36,763,731.53 | |
| Long-term equity investment | 10,598,239,200.32 | 9,210,422,313.34 | |
| Other equity instruments investment | 556,897,379.17 | 499,200,803.85 | |
| Other non-current financial assets | 121,590,140.86 | 142,053,056.97 | |
| Property investment | 4,115,810,590.81 | 2,803,007,146.68 | |
| Fixed assets | 3,974,413,890.47 | 4,122,738,826.73 | |
| Construction in progress | 2,555,580,061.19 | 2,318,993,733.00 | |
| Right-of-use assets | 103,038,184.75 | 109,853,155.63 | |
| Intangible assets | 5,610,536,305.45 | 5,872,460,683.86 | |
| Long-term prepaid expenses | 308,633,101.63 | 275,795,256.99 | |
| Deferred income tax assets | 95,863,135.46 | 137,378,229.19 | |
| Total non-current assets | 28,072,465,980.57 | 25,528,666,937.77 | |
| Total assets | 34,373,027,926.39 | 30,985,866,344.60 | |
| Current liabilities: | |||
| Short-term borrowings | 1,619,804,888.91 | 1,059,287,361.11 | |
| Accounts payable | 990,280,605.47 | 822,773,769.51 | |
| Advances from customers | 550,737,695.05 | 861,860,467.12 | |
| Contract liabilities | 3,003,146,485.10 | 3,032,044,768.16 | |
| Payroll payable | 105,072,078.58 | 139,946,321.85 | |
| Tax payable | 311,510,488.15 | 188,723,169.42 | |
| Other payables | 1,501,163,670.08 | 1,075,413,151.71 | |
| Non-current liabilities due within one year | 144,137,373.24 | 64,688,676.55 | |
| Other current liabilities | 3,763,504,419.10 | 3,726,398,088.04 | |
| Total current liabilities | 11,989,357,703.68 | 10,971,135,773.47 | |
| Non-current liabilities: | |||
| Long-term borrowings | 510,290,000.00 | 404,500,000.00 | |
| Bonds payable | 3,498,452,484.47 | 3,497,416,819.75 | |
| Lease liabilities | 107,858,015.51 | 110,999,791.68 | |
| Estimated liabilities | - | 110,620,306.10 | |
| Deferred income | 102,160,656.23 | 103,582,129.94 | |
| Deferred income tax liabilities | 11,434,544.88 | 13,046,676.14 | |
| Total non-current liabilities | 4,230,195,701.09 | 4,240,165,723.61 | |
| Total liabilities | 16,219,553,404.77 | 15,211,301,497.08 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (share capital) | 5,484,334,176.00 | 5,486,074,176.00 | |
| Capital reserve | 1,898,950,817.41 | 1,885,778,197.50 | |
| Less: treasury stocks | 74,367,173.75 | 119,483,675.00 | |
| Other comprehensive income | 2,453,961.13 | -40,818,470.36 | |
| Surplus reserve | 1,879,597,955.19 | 1,616,029,660.90 | |
| Undistributed profits | 8,962,504,785.64 | 6,946,984,958.48 | |
| Total owners’ equity (or shareholders’ equity) | 18,153,474,521.62 | 15,774,564,847.52 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 34,373,027,926.39 | 30,985,866,344.60 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Consolidated Income StatementJanuary-December 2023
Unit: RMB
| Item | Note | 2023 | 2022 |
| I. Gross revenue | 11,299,686,665.89 | 7,619,693,742.60 | |
| In which: operating revenue | 11,299,686,665.89 | 7,619,693,742.60 | |
| II. Gross cost | 9,398,535,258.86 | 7,545,489,637.45 | |
| In which: Operating cost | 8,305,741,779.40 | 6,452,909,829.96 | |
| Taxes and surcharges | 146,196,881.07 | 198,907,504.01 | |
| Sales expenses | 240,304,021.01 | 197,679,981.09 | |
| Administrative expenses | 559,531,630.75 | 529,466,270.71 | |
| R&D expenses | 21,748,987.30 | 17,377,161.88 | |
| Financial expenses | 125,011,959.33 | 149,148,889.80 | |
| In which: interest expenses | 269,457,747.37 | 280,924,664.39 | |
| Interest income | 67,433,620.70 | 132,216,250.44 | |
| Plus: other income | 32,220,817.34 | 38,802,684.45 | |
| Investment income (loss is indicated by “-”) | 1,068,443,512.48 | 1,041,524,864.25 | |
| In which: income from investment in associates and joint ventures | 1,035,858,139.92 | 996,108,417.69 | |
| Changes in fair value (loss is indicated by “-”) | -52,430,534.83 | -5,262,476.59 | |
| Credit impairment loss (loss is indicated by “-”) | 2,136,951.63 | -1,815,004.95 | |
| Income from disposal of assets (loss is indicated by “-”) | 153,800,256.65 | -941,780.66 | |
| III. Operating profit (loss is indicated by “-”) | 3,105,322,410.30 | 1,146,512,391.65 | |
| Plus: income from non-operating activities | 119,567,119.31 | 7,499,270.88 | |
| Less: expenses from non-operating activities | 16,817,970.47 | 4,204,829.93 | |
| IV. Profits before tax (loss is indicated by “-”) | 3,208,071,559.14 | 1,149,806,832.60 | |
| Less: income tax | 526,668,944.35 | 46,205,700.39 | |
| V. Net profits (net loss is indicated by “-”) | 2,681,402,614.79 | 1,103,601,132.21 | |
| (I) Categorized by continuity of operation | |||
| 1. Net profits from continuing operation (net loss is indicated by “-”) | 2,681,402,614.79 | 1,103,601,132.21 | |
| (II) Categorized by ownership | |||
| 1. Net profits attributable to shareholders of the parent company (net loss is indicated by “-”) | 2,676,182,133.26 | 1,104,719,091.71 | |
| Minority interest(net loss is indicated by “-”) | 5,220,481.53 | -1,117,959.50 | |
| VI. Other comprehensive income net after tax | 47,350,450.91 | -84,931,872.51 | |
| (I) Other comprehensive income net after tax attributable to owners of the parent company | 47,403,170.92 | -84,859,208.62 | |
| 1. Other comprehensive income that cannot be reclassified as profits or loss | 43,272,431.49 | -107,240,373.69 | |
| (3) Changes in fair value of investments in other equity instruments | 43,272,431.49 | -107,240,373.69 | |
| 2 . Other comprehensive income that will be reclassified as profits or loss | 4,130,739.43 | 22,381,165.07 | |
| (1) Other comprehensive income that can be transferred into profit and loss under equity method | 885,012.68 | 4,060,531.46 | |
| (6) Difference arising from the translation of foreign currency financial statements | 3,245,726.75 | 18,320,633.61 | |
| (II) Other comprehensive income net after tax attributable to minority shareholders | -52,720.01 | -72,663.89 | |
| VII. Total comprehensive income | 2,728,753,065.70 | 1,018,669,259.70 | |
| (I) Total comprehensive income attributable to owners of the parent company | 2,723,585,304.18 | 1,019,859,883.09 | |
| (II) Total comprehensive income attributable to minority shareholders | 5,167,761.52 | -1,190,623.39 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share | 0.49 | 0.20 | |
| (II) Diluted earnings per share | 0.49 | 0.20 | |
In this period, if a business merger occurs under the same control, the net profit realized by themerged party before the merger was 0, and the net profit realized by the merged party in theprevious period was 0.Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Income Statement of Parent Company
January-December 2023
Unit: RMB
| Item | Note | 2023 | 2022 |
| I. Operating revenue | 3,641,735,456.48 | 1,941,582,561.02 | |
| Less: Operating cost | 1,083,865,641.44 | 937,173,155.53 | |
| Taxes and surcharges | 117,591,024.56 | 165,751,730.61 | |
| Sales expenses | 201,312,475.87 | 198,120,081.31 | |
| Administrative expenses | 281,496,634.12 | 269,059,168.76 | |
| Financial expenses | 155,131,505.49 | 168,088,031.70 | |
| In which: interest expenses | 267,263,958.81 | 281,287,879.72 | |
| Interest income | 53,028,423.62 | 122,678,523.33 | |
| Plus: other income | 15,193,514.90 | 13,079,397.88 | |
| Investment income (loss is indicated by “-”) | 1,086,824,054.17 | 948,235,020.44 | |
| In which: income from investment in associates and joint ventures | 1,077,697,693.84 | 932,395,547.67 | |
| Changes in fair value (loss is indicated by “-”) | -20,288,211.11 | -31,735,150.35 | |
| Credit impairment loss (loss is indicated by “-”) | 351,544.77 | -288,497.31 | |
| Income from disposal of assets (loss is indicated by “-”) | 153,797,464.25 | 1,019,351.95 | |
| II. Operating profits (loss is indicated by “-”) | 3,038,216,541.98 | 1,133,700,515.72 | |
| Plus: income from non-operating activities | 113,602,463.95 | 6,488,569.32 | |
| Less: expenses from non-operating activities | 15,060,222.20 | 3,650,112.77 | |
| III. Profits before tax (loss is indicated by “-”) | 3,136,758,783.73 | 1,136,538,972.27 | |
| Less: income tax | 501,075,840.84 | 27,805,559.97 | |
| IV. Net profits (net loss is indicated by “-”) | 2,635,682,942.89 | 1,108,733,412.30 | |
| (I) Categorized by continuity of operation(net loss is indicated by “-”) | 2,635,682,942.89 | 1,108,733,412.30 | |
| V. Other comprehensive income net after tax | 43,272,431.49 | -107,240,373.69 | |
| (I) Other comprehensive income that cannot be reclassified as profit or loss | 43,272,431.49 | -107,240,373.69 | |
| 3. Changes in fair value of investments in other equity instruments | 43,272,431.49 | -107,240,373.69 | |
| VI. Total comprehensive income | 2,678,955,374.38 | 1,001,493,038.61 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Consolidated Cash Flow Statement
January-December 2023
Unit: RMB
| Item | Note | 2023 | 2022 |
| I. Cash flow from operating activities: | |||
| Cash received from sale of goods and rendering of services | 11,845,772,312.84 | 8,663,117,389.69 | |
| Cash received for taxes and surcharges refunded | 41,491,707.71 | 319,401,723.98 | |
| Other cash receipts relating to operating activities | 297,775,481.56 | 434,715,976.74 | |
| Sub-total of cash inflow from operating activities | 12,185,039,502.11 | 9,417,235,090.41 | |
| Cash paid for goods and services | 8,652,781,970.44 | 6,134,704,401.79 | |
| Cash paid to and on behalf of employees | 554,447,408.43 | 522,242,510.47 | |
| Payments of taxes | 608,080,567.96 | 804,862,955.73 | |
| Other cash payments relating to operating activities | 524,669,705.36 | 555,334,508.65 | |
| Sub-total of cash outflow from operating activities | 10,339,979,652.19 | 8,017,144,376.64 | |
| Net cash flow from operating activities | 1,845,059,849.92 | 1,400,090,713.77 | |
| II. Cash flow from investing activities: | |||
| Cash received from recovery of investment | 126,377,336.34 | 990,875,547.75 | |
| Cash received from investment income | 148,337,260.40 | 162,065,398.30 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 200,359,058.71 | 13,483,158.58 | |
| Net cash received from disposal of subsidiaries and other business units | 12,482,830.94 | - | |
| Other cash receipts relating to investing activities | 799,906,608.09 | 1,259,208,113.00 | |
| Sub-total of cash inflow from investing activities | 1,287,463,094.48 | 2,425,632,217.63 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 2,627,630,588.71 | 4,114,901,826.31 | |
| Cash paid to acquire investments | 21,106.36 | 319,039,459.91 | |
| Net cash paid by acquiring subsidiaries and other business units | - | 312,616,964.11 | |
| Other cash paid related to investing activities | 34,806,218.75 | 41,772,885.00 | |
| Sub-total of cash outflow from investing activities | 2,662,457,913.82 | 4,788,331,135.33 | |
| Net cash flow from investing activities | -1,374,994,819.34 | -2,362,698,917.70 | |
| III. Cash flow from financing activities: | |||
| Cash received from borrowings | 7,593,601,904.18 | 14,419,431,088.06 | |
| Sub-total of cash inflow from financing activities | 7,593,601,904.18 | 14,419,431,088.06 | |
| Cash paid for debts repayment | 6,495,200,000.00 | 14,774,484,040.95 | |
| Cash paid for distribution of dividends or profits or payment of interest | 594,916,647.30 | 652,035,197.63 | |
| Other cash paid related to financing activities | 43,000,125.88 | 50,128,807.59 | |
| Sub-total of cash outflow from financing activities | 7,133,116,773.18 | 15,476,648,046.17 | |
| Net cash flow from financing activities | 460,485,131.00 | -1,057,216,958.11 | |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -1,572,164.03 | -5,442,221.79 | |
| V. Net increase in cash and cash equivalents | 928,977,997.55 | -2,025,267,383.83 | |
| Plus: opening balance of cash and cash equivalents | 1,981,200,941.64 | 4,006,468,325.47 | |
| VI. Closing balance of cash and cash equivalents | 2,910,178,939.19 | 1,981,200,941.64 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Cash Flow Statement of Parent Company
January-December 2023
Unit: RMB
| Item | Note | 2023 | 2022 |
| I. Cash flow from operating activities: | |||
| Cash received from sale of goods and rendering of services | 3,642,520,110.94 | 2,757,913,722.02 | |
| Cash received for taxes and surcharges refunded | - | 248,723,587.20 | |
| Other cash receipts relating to operating activities | 168,942,827.40 | 223,084,596.77 | |
| Sub-total of cash inflow from operating activities | 3,811,462,938.34 | 3,229,721,905.99 | |
| Cash paid for goods and services | 726,854,063.79 | 562,286,375.43 | |
| Cash paid to and on behalf of employees | 275,272,953.29 | 281,130,313.54 | |
| Payments of taxes | 381,133,816.82 | 710,961,271.08 | |
| Other cash payments relating to operating activities | 374,603,821.61 | 403,432,298.40 | |
| Sub-total of cash outflow from operating activities | 1,757,864,655.51 | 1,957,810,258.45 | |
| Net cash flow from operating activities | 2,053,598,282.83 | 1,271,911,647.54 | |
| II. Cash flow from investing activities: | |||
| Cash received from recovery of investment | 810,243.65 | 1,095,641,009.05 | |
| Cash received from investment income | 132,091,654.39 | 128,261,072.18 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 200,268,213.08 | 4,820,113.40 | |
| Net cash received from disposal of subsidiaries and other business units | - | 9,380,000.00 | |
| Other cash receipts relating to investing activities | 675,140,683.19 | 1,221,892,831.00 | |
| Sub-total of cash inflow from investing activities | 1,008,310,794.31 | 2,459,995,025.63 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,719,700,944.06 | 3,579,149,669.56 | |
| Cash paid to acquire investments | 605,189,661.99 | 1,214,422,943.13 | |
| Other cash paid related to investing activities | 34,806,218.75 | - | |
| Sub-total of cash outflow from investing activities | 2,359,696,824.80 | 4,793,572,612.69 | |
| Net cash flow from investing activities | -1,351,386,030.49 | -2,333,577,587.06 | |
| III. Cash flow from financing activities: | |||
| Cash received from borrowings | 7,226,963,041.15 | 14,419,431,088.06 | |
| Sub-total of cash inflow from financing activities | 7,226,963,041.15 | 14,419,431,088.06 | |
| Cash paid for debts repayment | 6,495,200,000.00 | 14,774,484,040.95 | |
| Cash paid for distribution of dividends or profits or payment of interest | 590,879,374.03 | 652,035,197.63 | |
| Other cash paid related to financing activities | 16,609,497.18 | 26,540,591.93 | |
| Sub-total of cash outflow from financing activities | 7,102,688,871.21 | 15,453,059,830.51 | |
| Net cash flow from financing activities | 124,274,169.94 | -1,033,628,742.45 | |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | - | - | |
| V. Net increase in cash and cash equivalents | 826,486,422.28 | -2,095,294,681.97 | |
| Plus: opening balance of cash and cash equivalents | 1,431,822,390.59 | 3,527,117,072.56 | |
| VI. Closing balance of cash and cash equivalents | 2,258,308,812.87 | 1,431,822,390.59 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head ofFinance Department: ZHAO Difang
Statement of Changes in Consolidated Owners’ Equity
January-December 2023
Unit: RMB
| Item | 2023 | |||||||||
| Equity attributable to owners of the parent company | Minority interest | Total owners’ equity | ||||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | General risk reserve | Undistributed profits | Sub-total | |||
| I. Balance at the end of previous year | 5,486,074,176.00 | 1,651,146,033.96 | 119,483,675.00 | -24,008,473.60 | 1,616,083,136.73 | 1,038,991.13 | 6,651,440,591.35 | 15,262,290,780.57 | 18,805,602.08 | 15,281,096,382.65 |
| II. Opening balance of the current year | 5,486,074,176.00 | 1,651,146,033.96 | 119,483,675.00 | -24,008,473.60 | 1,616,083,136.73 | 1,038,991.13 | 6,651,440,591.35 | 15,262,290,780.57 | 18,805,602.08 | 15,281,096,382.65 |
| III. YoY change (decrease is indicated by “-”) | -1,740,000.00 | 15,736,053.64 | -45,116,501.25 | 47,403,170.92 | 263,568,294.29 | 3,854,655.84 | 2,052,164,361.69 | 2,426,103,037.63 | -3,261,899.01 | 2,422,841,138.62 |
| (I) Total comprehensive income | - | - | - | 47,403,170.92 | - | - | 2,676,182,133.26 | 2,723,585,304.18 | 5,167,761.52 | 2,728,753,065.70 |
| (II)Owners’ contribution to and reduction in capital | -1,740,000.00 | 15,736,053.64 | -45,116,501.25 | - | - | - | - | 59,112,554.89 | - | 59,112,554.89 |
| 3. Amount of share-based payment into owner’s equity | -1,740,000.00 | 13,172,619.91 | -45,116,501.25 | - | - | - | - | 56,549,121.16 | - | 56,549,121.16 |
| 4. Others | - | 2,563,433.73 | - | - | - | - | - | 2,563,433.73 | 2,563,433.73 | |
| (III) Profits distribution | - | - | - | - | 263,568,294.29 | 3,854,655.84 | -624,017,771.57 | -356,594,821.44 | - | -356,594,821.44 |
| 1. Withdrawal of surplus reserve | - | - | - | - | 263,568,294.29 | - | -263,568,294.29 | - | - | - |
| 2. Withdrawal of provision for general risks | - | - | - | - | - | 3,854,655.84 | -3,854,655.84 | - | - | - |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 | - | -356,594,821.44 |
| (VI) Others | - | - | - | - | - | - | - | - | -8,429,660.53 | -8,429,660.53 |
| IV. Closing balance of the current period | 5,484,334,176.00 | 1,666,882,087.60 | 74,367,173.75 | 23,394,697.32 | 1,879,651,431.02 | 4,893,646.97 | 8,703,604,953.04 | 17,688,393,818.20 | 15,543,703.07 | 17,703,937,521.27 |
| Item | 2022 | |||||||||
| Equity attributable to owners of the parent company | Minority interest | Total owners’ equity | ||||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | General risk reserve | Undistributed profits | Sub-total | |||
| I. Balance at the end of previous year | 5,491,274,176.00 | 1,631,509,114.96 | 137,494,800.00 | 60,850,735.02 | 1,505,209,795.50 | - | 6,059,496,846.85 | 14,610,845,868.33 | 19,996,225.47 | 14,630,842,093.80 |
| II. Opening balance of the current year | 5,491,274,176.00 | 1,631,509,114.96 | 137,494,800.00 | 60,850,735.02 | 1,505,209,795.50 | - | 6,059,496,846.85 | 14,610,845,868.33 | 19,996,225.47 | 14,630,842,093.80 |
| III. YoY change (decrease is indicated by “-”) | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | -84,859,208.62 | 110,873,341.23 | 1,038,991.13 | 591,943,744.50 | 651,444,912.24 | -1,190,623.39 | 650,254,288.85 |
| (I) Total comprehensive income | - | - | - | -84,859,208.62 | - | - | 1,104,719,091.71 | 1,019,859,883.09 | -1,190,623.39 | 1,018,669,259.70 |
| (II)Owners’ contribution to and reduction in capital | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | - | - | - | - | 32,448,044.00 | - | 32,448,044.00 |
| 3. Amount of share-based payment into owner’s equity | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | - | - | - | - | 32,448,044.00 | - | 32,448,044.00 |
| (III) Profits distribution | - | - | - | - | 110,873,341.23 | 1,038,991.13 | -512,775,347.21 | -400,863,014.85 | - | -400,863,014.85 |
| 1. Withdrawal of surplus reserve | - | - | - | - | 110,873,341.23 | - | -110,873,341.23 | - | - | - |
| 2. Withdrawal of provision for general risks | - | - | - | - | - | 1,038,991.13 | -1,038,991.13 | - | - | - |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 | - | -400,863,014.85 |
| IV. Closing balance of the current period | 5,486,074,176.00 | 1,651,146,033.96 | 119,483,675.00 | -24,008,473.60 | 1,616,083,136.73 | 1,038,991.13 | 6,651,440,591.35 | 15,262,290,780.57 | 18,805,602.08 | 15,281,096,382.65 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
Statement of Changes in Owners’ Equity of Parent Company
January-December 2023
Unit: RMB
| Item | 2023 | ||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners’ equity | |
| I. Balance at the end of previous year | 5,486,074,176.00 | 1,885,778,197.50 | 119,483,675.00 | -40,818,470.36 | 1,616,029,660.90 | 6,946,984,958.48 | 15,774,564,847.52 |
| II. Opening balance of the current year | 5,486,074,176.00 | 1,885,778,197.50 | 119,483,675.00 | -40,818,470.36 | 1,616,029,660.90 | 6,946,984,958.48 | 15,774,564,847.52 |
| III. YoY change (decrease is indicated by “-”) | -1,740,000.00 | 13,172,619.91 | -45,116,501.25 | 43,272,431.49 | 263,568,294.29 | 2,015,519,827.16 | 2,378,909,674.10 |
| (I) Total comprehensive income | - | - | - | 43,272,431.49 | - | 2,635,682,942.89 | 2,678,955,374.38 |
| (II)Owners’ contribution to and reduction in capital | -1,740,000.00 | 13,172,619.91 | -45,116,501.25 | - | - | - | 56,549,121.16 |
| 3. Amount of share-based payment into owner’s equity | -1,740,000.00 | 13,172,619.91 | -45,116,501.25 | - | - | - | 56,549,121.16 |
| 4．Others | - | - | - | - | - | - | - |
| (III) Profits distribution | - | - | - | - | 263,568,294.29 | -620,163,115.73 | -356,594,821.44 |
| 1. Withdrawal of surplus reserve | - | - | - | - | 263,568,294.29 | -263,568,294.29 | - |
| 2. Distribution to owner (or shareholders) | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 |
| IV. Closing balance of the current period | 5,484,334,176.00 | 1,898,950,817.41 | 74,367,173.75 | 2,453,961.13 | 1,879,597,955.19 | 8,962,504,785.64 | 18,153,474,521.62 |
| Item | 2022 | ||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners’ equity | |
| I. Balance at the end of previous year | 5,491,274,176.00 | 1,866,141,278.50 | 137,494,800.00 | 66,421,903.33 | 1,505,156,319.67 | 6,349,987,902.26 | 15,141,486,779.76 |
| II. Opening balance of the current year | 5,491,274,176.00 | 1,866,141,278.50 | 137,494,800.00 | 66,421,903.33 | 1,505,156,319.67 | 6,349,987,902.26 | 15,141,486,779.76 |
| III. YoY change (decrease is indicated by “-”) | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | -107,240,373.69 | 110,873,341.23 | 596,997,056.22 | 633,078,067.76 |
| (I) Total comprehensive income | - | - | - | -107,240,373.69 | - | 1,108,733,412.30 | 1,001,493,038.61 |
| (II)Owners’ contribution to and reduction in capital | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | - | - | - | 32,448,044.00 |
| 3. Amount of share-based payment into owner’s equity | -5,200,000.00 | 19,636,919.00 | -18,011,125.00 | - | - | - | 32,448,044.00 |
| (III) Profits distribution | - | - | - | - | 110,873,341.23 | -511,736,356.08 | -400,863,014.85 |
| 1. Withdrawal of surplus reserve | - | - | - | - | 110,873,341.23 | -110,873,341.23 | - |
| 2. Distribution to owner (or shareholders) | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 |
| IV. Closing balance of the current period | 5,486,074,176.00 | 1,885,778,197.50 | 119,483,675.00 | -40,818,470.36 | 1,616,029,660.90 | 6,946,984,958.48 | 15,774,564,847.52 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limitedby share and was incorporated on Dec 28, 1993 in Zhejiang province of the People’s Republicof China. The RMB-denominated common A shares issued by the Company got listed onShanghai Stock Exchange on May 9, 2002. The Company's headquarters is located at No. 567Yinhai Road, Futian Street, Yiwu City, Jinhua City, Zhejiang Province.The Group’s main business activities: market development and operation and supportingservices, sales of commodities, provision of online trading platforms and services,development and management of online trading market, etc., in the category of comprehensiveservices.The parent company of the Group is Yiwu China Commodities City Holdings Limited(hereinafter referred to as “CCCH”) and the final controller of the Group is the State-ownedAssets Supervision and Administration Office of the People’s Government of Yiwu.
The financial statements were approved for release by the Board of Directors of theCompany on April 17, 2024. According to the Company's articles of association, these financialstatements are to be submitted to the general meeting of shareholders for deliberation.
IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.
The financial statements were prepared in accordance with the Accounting Standards forEnterprises-Basic Standards and the specific accounting standards, application guidelines,interpretations and other related regulations promulgated and amended thereafter (collectivelyreferred to as “Accounting Standards”). In addition, the financial statements also discloserelevant financial information in accordance with the Rule No. 15 for the Preparation andDisclosure of Information by Companies Offering Securities to the Public - General Provisionsfor Financial Reporting.
2. Going concern
√Applicable □Not applicable
As of December 31, 2023, after deducting the contractual liabilities and prepayments ofthe Group's future revenue to be recognized through services or goods settlement, as well asprepayments for goods or services that the Group would receive in the future, the Group'scurrent liabilities exceeded its current assets by RMB 3,505,123,751.42. The Board ofDirectors of the Company has comprehensively considered the following sources of funds thatthe Group can obtain: 1. The expected net cash inflows from operating activities in the next 12months; 2. As of December 31, 2023, the credit limit unused from banking institutions of theGroup was RMB 4,745,500,000.00, of which RMB650,000,000.00 should be renewed withinthe next 12 months. The board of directors of the Company is convinced that the availablecredit line can be re-approved when it expires based on past experience and good reputation;
3. In view of the credit history of the group, other available financing channels from banks andother financial institutions; 4. , The Group's controlling shareholder CCCH has promised tocontinue to provide sufficient financial support in the foreseeable future.
After evaluation, the Board of Directors of the Company believed that the Group hadsufficient resources to continue operating for a foreseeable future period of no less than 12months from the end of this reporting period. Therefore, the Board of Directors of the Companycontinued to prepare the financial statements of the Group for the year 2023 based on goingconcern.
V. Important Accounting Policies and Accounting EstimatesReminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
The Group has formulated specific accounting policies and estimates based on the actualproduction and operation characteristics, mainly reflected in bad debt provisions for accountsreceivable, inventory valuation methods, provision for inventory depreciation, fixed assetdepreciation, intangible asset amortization, revenue recognition and measurement, division ofinvestment real estate and fixed assets, and the useful life and residual value of fixed assets.
1. Statement of compliance with the Accounting Standards
The financial statements prepared by the Group comply with the requirements of theAccounting Standards, and truly and completely reflect the Company’s financial conditions,operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The fiscal year of the Group starts from January 1 until December 31 of each calendaryear.
3. Operating cycle
√Applicable □Not applicable
The business cycle of the Company is relatively short, and 12 months are used as thestandard for defining the liquidity of assets and liabilities.
4. Functional currency
The Company’s functional currency is RMB.
The subsidiaries, joint ventures and associates of the Group determine their functionalcurrencies at their own discretion based on the main economic environments in their places ofbusinesses and convert all amounts into RMB while preparing financial statements.
5. Method for determining importance criteria and selection basis
√Applicable □Not applicable
| Item | Importance criteria |
| Important debt investment | Amount greater than RMB 10 million |
| Important construction in progress | Amount greater than RMB 10 million |
| Important minority shareholders’ interest | The total assets are greater than RMB 100 million and the minority shareholder's shareholding ratio is greater than or equal to 5% |
| Important joint ventures or associates | Investment targets that align with the Group's development strategy |
6. Accounting methods for merger of the enterprises under common control and merger
of the enterprises not under common control
√Applicable □Not applicable
The mergers of enterprises are divided into the mergers of the enterprises under commoncontrol and mergers of the enterprises not under common control.
Mergers of the enterprises under common control
If the enterprises participating in the merger are ultimately controlled by the same party orthe same parties before and after the merger, and the control is not temporary, the deal is abusiness merger under the same control.
The assets and liabilities acquired by the merging party in a merger of the enterprisesunder common control (including the goodwill formed through the acquisition of the mergedparty by the ultimate controller) are accounted according to the book value thereof in theultimate controller’s financial statements on the date of merger. For the difference between thebook value of the net assets obtained by the merging party and the book value of theconsideration paid for the merger (or the total nominal value of the shares issued), the sharecapital premium in the capital reserve shall be adjusted; if the share capital premium is notsufficient to absorb the difference, the retained earnings shall be adjusted.
Mergers of enterprises not under common controlIf the enterprises participating in the merger are not under the ultimate control of the sameparty or the same parties before and after the merger, the deal is business merger not underthe same control.The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from themerger of the enterprises not under common control are measured at their fair values on thedate of acquisition. The difference between the merger cost and the fair value share of theidentifiable net assets obtained from the acquired party in the merger is recognized as goodwilland subsequently measured at cost minus accumulated impairment losses. If the merger costis less than the fair value share of the identifiable net assets obtained from the acquired partyin the merger, the fair values of the identifiable assets, liabilities, and contingent liabilitiesobtained from the acquired party, as well as the measurement of the merger cost, shall bereviewed. If the merger cost is still less than the fair value share of the identifiable net assetsobtained from the acquired party in the merger, the difference shall be recognized in gains andlosses for this period.
7. Judgment criteria for control and preparation methods for consolidated financialstatements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control,including those of the Company and all of its subsidiaries. Subsidiaries refer to the entitiescontrolled by the Company (including the severable parts of enterprises and invested entities,and the structured entities controlled by the Company). When and only when the investorpossesses the following three elements, the investor can control the investee: the investor hasthe power over the investee; enjoy variable returns due to participation in related activities ofthe invested party; ability to exercise power over the invested party to influence its returnamount.
If the accounting policies or accounting periods adopted by the subsidiary and theCompany are inconsistent, necessary adjustments shall be made to the subsidiary's financialstatements in accordance with the Company's accounting policies and accounting periodswhen preparing the consolidated financial statements. Assets, liabilities, equity, income,expenses and cash flows generated from all deals between companies within the Group arefully offset at the time of merger.
If the amount of loss for the current period attributable to the minority shareholders of asubsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’equity in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business merger not under the same control, theoperating results and cash flows of the acquiree will be included in the consolidated financialstatements from the day when the Group acquires control, until the control of the Groupceases. In the preparation of consolidated financial statements, adjustments will be made tothe financial statements of the subsidiary based on the fair value of its identifiable assets,liabilities or contingent liabilities determined on the date of acquisition.
For a subsidiary acquired through a business merger under the same control, theoperating results and cash flows of merged party will be included in the consolidated financialstatements since the beginning of the current period of the merger. In the preparation ofconsolidated financial statements, adjustments will be made to the related items in its previousfinancial statements as if the reporting entity formed after the merger has been existing as fromthe ultimate controller starts to exercise control.
In case of any change to one or more elements of the control due to the changes inrelated facts and circumstances, the Group will re-evaluate whether to control the investee.
Without loss of control, changes in minority shareholders' equity are regarded as equitytransactions.
8. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operationrefers to a joint arrangement in which the parties thereto enjoy the assets relating to such
arrangement and assume the liabilities relating to such arrangement. Joint venture refers to ajoint arrangement in which the parties thereto only enjoy rights to the net assets in thisarrangement.Each party to a joint arrangement recognizes the following items relating to its share in thejoint operation: assets held individually by it and assets held jointly based on its share;liabilities assumed individually by it and liabilities assumed jointly based on its share; revenuefrom the sale of its share in the output of the joint operation; revenue from the sale of theoutput of the joint operation based on its share; expenses incurred individually by it andexpenses incurred by the joint operation based on its share.
9. Criteria for the identification of cash and cash equivalentsCash refers to the group’s cash on hand and deposits that can be used for payment at anytime; cash equivalent refers to the investment held by the Group with a short term, strongliquidity, easy to convert into cash with a known amount, and with low risk of value changes.
10. Foreign currency transactions and translation of foreign currency financialstatements
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amountsinto its functional currency amounts.In the initial recognition of a foreign currency transaction, the foreign currency amount istranslated to a functional currency amount according to the spot exchange rate on the date oftransaction. On the balance sheet date, the foreign currency monetary items are translatedaccording to the spot exchange rate on the balance sheet date. The translation differencebetween settlement and monetary items is recognized in the profit or loss for the currentperiod, except for the difference arising from the special foreign currency borrowing relating tothe acquisition and construction of the assets qualified for capitalization, which will be treatedbased on the principles for the capitalization of borrowing expenses. Foreign currency non-monetary items measured at historical cost are still converted using the exchange rate used atinitial recognition, without changing their accounting base currency amount. The foreigncurrency non-monetary items measured by fair value are translated according to the spotexchange rate on the fair value determination date and the difference arising therefrom isrecognized in the profit or loss or other comprehensive income for the current period based onthe nature of the items.
The Group translates the functional currency of its foreign business into RMB whilepreparing the financial statements. The assets and liabilities items in the balance sheet aretranslated according to the spot exchange rate on the balance sheet date, the shareholders’equity items are translated according to the spot exchange rate at the occurrence of the itemsexcept for “undistributed profits”; revenue and expenses items in the income statement aretranslated according to the average exchange rate during the period in which the transactionhappens (conversion shall be at the spot rate on the date of the transaction, unless exchangerate fluctuations make such conversion inappropriate). The translation differences of foreigncurrency statements arising from the above translations are recognized as othercomprehensive income. For the disposal of foreign business, other comprehensive incomerelating to the foreign business is recognized in the profit or loss of the disposal for the currentperiod and is calculated pro rata for partial disposal.
Foreign currency cash flows and cash flows of overseas subsidiaries are converted usingthe average exchange rate for the period in which the cash flows occur (unless exchange ratefluctuations make the exchange rate inappropriate, the spot exchange rate on the day the cashflows occur) is used for conversion. The amount of impact of the changes in exchange rate oncash is separately stated in the cash flow statement as an adjustment item.
11. Financial instruments
√Applicable □Not applicable
Financial instruments refer to the contracts which form financial assets of an enterpriseand form financial liabilities or equity instruments of other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming a partyto a financial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of agroup of similar financial assets), i.e. charging off the asset from its account and balancesheet, if:
(1) The right to receive cash flows from financial assets expires;
(2) The Company transferred the right to receive cash flows from financial assets, orassumed the obligation to timely and fully pay the received cash flows to third parties under a"pass through agreement"; and essentially transferred almost all the risks and rewards ofownership of the financial asset, or relinquished control over the financial asset even though itneither transferred nor retained almost all the risks and rewards of ownership.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If anexisting financial liability is replaced by the same creditor with another financial liability undersubstantially different terms or the terms of the existing liability are substantially modified inwhole, the existing liability will be derecognized and the new liability will be recognized, and thedifference will be recognized in the profit or loss for the current period.
For the transactions of financial assets in regular ways, the recognition and de-recognitionthereof will be conducted based on the accounting on the transaction date. Buying and sellingfinancial assets in a conventional manner refers to the purchase or sale of financial assets inaccordance with contractual provisions, and the terms of the contract stipulate that financialassets are delivered according to the time schedule usually determined by regulations ormarket practices. The transaction date refers to the date when the Group promises to buy orsell the financial assets.
Classification and measurement of financial assets
The financial assets of the Group are classified at initial recognition based on the businessmodel of managing financial assets and the contractual cash flow characteristics of financialassets as financial assets measured at amortized cost, financial assets measured at fair valuewith changes recognized in other comprehensive income, and financial assets measured at fairvalue with changes recognized in current period profit and loss. All affected related financialassets will be reclassified only when the Group changes its business model for managingfinancial assets.
If a financial asset is measured by fair value at initial recognition, but the accountsreceivable or notes receivable from the sale of goods or rendering of service do not includesignificant financing components or the financing components with a term no longer than oneyear are not considered, the initial measurement will be made based on the transaction price.
For the financial assets that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period, the related transaction fees willbe directly recognized in the profit or loss for the current period; the related transaction fees ofother financial assets will be recognized in the initially recognized amounts thereof.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if the businessmodel for the management of the asset is for the purpose of collecting contractual cash flow;and the terms of the contract of the asset stipulate that the cash flow generated on the specificdate is only the repayment of principal and the payment of interest on the outstanding principal.The interest income of such financial assets is recognized with the effective interest method,and the gains or losses from the de-recognition, modification or impairment thereof are allrecognized in the profit or loss for the current period.
Investment in the equity instruments that are measured by fair value and of whichthe changes in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrumentinvestments as the financial assets that are measured by fair value and of which the changesin fair value are recognized in other comprehensive income. Only the related dividend income(except for the dividend income expressly acting as a recovery of investment cost) is
recognized in the profit or loss for the current period, while the subsequent changes in fairvalue are recognized in other comprehensive income, and no provision is required forimpairment. When the financial assets are derecognized, the accumulated gains or lossespreviously recognized in other comprehensive income will be moved out of othercomprehensive income and recognized in retained earnings.
Financial assets that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current periodThe financial assets other than the above financial assets measured by amortized costand the above financial assets that are measured by fair value and of which the changes in fairvalue are recognized in other comprehensive income are classified as the financial assets thatare measured by fair value and of which the changes in fair value are recognized in the profitor loss for the current period. Those financial assets are subsequently measured by fair valueand all changes in the fair value thereof are recognized in the profit or loss for the currentperiod.Classification and measurement of financial liabilitiesThe financial liabilities of the Group are classified at initial recognition as financial liabilitiesmeasured at fair value through profit or loss, and financial liabilities measured at amortizedcost. For financial liabilities measured at fair value through profit or loss, the relevanttransaction costs are directly recognized in profit or loss, while the relevant transaction costs offinancial liabilities measured at amortized cost are recognized in their initial recognitionamount.The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through profit or loss
The financial liabilities that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period include financial liabilities heldfor trading (including the derivative instruments as financial liabilities) and the liabilities that aredesignated at initial recognition as the financial liabilities that are measured by fair value and ofwhich the changes in fair value are recognized in the profit or loss for the current period. Thefinancial liabilities held for trading (including the derivative instruments as financial liabilities)are subsequently measured by fair value and all changes in the fair value are recognized in theprofit or loss for the current period.
Financial assets measured at amortized cost
Those financial liabilities are subsequently measured by amortized cost with the effectiveinterest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets measured byamortized cost based on the expected credit loss.
For receivables that do not contain significant financing components, the Group measuresthe loss provision based on the amount of expected credit loss equivalent to the entire durationunder a simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates oneach balance sheet date whether their credit risks have increased significantly since the initialrecognition. If the credit risk of a financial asset has not increased significantly since the initialrecognition, the asset is in the first stage and the Group will make provision for loss based onthe amount of expected credit loss within the coming 12 months and calculate interest incomebased on the book balance and effective interest rate; if the credit risk has increasedsignificantly since the initial recognition, but credit has not been impaired, the asset is in thesecond stage and the Group will make provision for loss equivalent to the amount of expectedcredit loss during the entire term and calculate interest income based on the book balance andeffective interest rate; if credit has been impaired after the initial recognition, the asset is in thethird stage and the Group will make provision for loss equivalent to the amount of expectedcredit loss during the entire term and calculate interest income based on the amortized costand effective interest rate.
The Group evaluates the expected credit losses of financial instruments on the individualand group bases. The Group considers the credit risk characteristics of different customers,evaluates the expected credit losses of accounts receivable based on common riskcharacteristics and aging combinations, and determines the aging based on the invoicing date.
Except for financial instruments that are evaluated for expected credit losses in theaforementioned combination, the Group assesses their expected credit losses in a single item.Please refer to Note XII. 1. Risk of Financial Instruments for the disclosure of the criteriafor significantly increasing credit risk and the definition of credit impairment assets that haveoccurred by the Group.The factors reflected in the Group's method of measuring expected credit losses offinancial instruments include: unbiased probability-weighted average amount determined byevaluating a series of possible outcomes; time value of money; no unnecessary additional costor effort on the balance sheet date Reasonable and evidence-based information that is readilyavailable about past events, current conditions and forecasts of future economic conditions.
When the Group no longer reasonably expects that it can recover the contractual cashflow of a financial asset in whole or in part, it will directly write down the book balance of theasset.
12. Notes receivable
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
Combination classification and determination basis of combined provision for bad debtbased on credit risk characteristics
□Applicable √Not applicable
Methods for calculating aging based on the credit risk characteristics combinationconfirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
□Applicable √Not applicable
13. Accounts receivable
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of accountsreceivable
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Combination classification and determination basis of combined provision for bad debtbased on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Methods for calculating aging based on the credit risk characteristics combinationconfirmed by aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Recognition criteria for individual provision of bad debt
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
14. Accounts receivable financing
□Applicable √Not applicable
15. Other receivables
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Combination classification and determination basis of combined provision for bad debtbased on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Methods for calculating aging based on the credit risk characteristics combinationconfirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
□Applicable √Not applicable
16. Inventory
√Applicable □Not applicable
Inventory category, valuation method for issuance, inventory system, amortizationmethod for low-value consumables and packaging materials
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods, real estatedevelopment costs and real estate development products.
Inventory is initially measured by cost. The costs of inventory except development costs anddevelopment products include the procurement cost, processing cost and other costs. The actualcosts of items out of inventory are determined with the weighted average method. Work-in-progress materials include low-value consumables and packages, which are amortized with theone-off charging-off method.
Development costs refer to the properties that have not been completed and are developedfor the purpose of being sold. Development products refer to the properties that have beencompleted and are ready for sale. The actual costs of real estate development costs anddevelopment products include the land acquisition cost, expenditures on construction andinstallation works, capitalized interest and other direct and indirect development expenses. Theuse right of the land for development purpose at the development of a project is amortized andrecognized as the development cost of the project based on the site area of the developmentproduct, and the development cost will be changed over to development product after beingcompleted.
If the public auxiliary facilities are completed earlier than the related development product,the facilities will be allocated to and recognized in the development cost of related developmentproject based on the floor space of the project after final accounting of the facilities uponcompletion; if the public auxiliary facilities are completed later than the related developmentproduct, they will be recognized in the development cost of related development project basedon the predicted cost of the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory, while otherinventories are subject to perpetual inventory.
Recognition criteria and provision methods for provision for inventory depreciation
√Applicable □Not applicable
On the balance sheet date, inventory is measured by cost and net realizable value,whichever is lower. If the cost is higher than the net realizable value, provision will be made forinventory depreciation, which will be recognized in the profit or loss for the current period. Netrealizable value is the estimated selling price of inventory less the cost estimated to occur as ofcompletion, estimated sales expenses and related taxes. In principle, provisions for inventorydepreciation shall be made for inventory items individually. For the inventory with a largequantity and a low unit price, inventory depreciation provision will be made based on theGroups of items.
Combination classification and determination basis for combined provision forinventory depreciation, and determination basis for net realizable value of inventory ofdifferent categories
□Applicable √Not applicable
Calculation methods and determination basis for the net realizable value of eachinventory age combination based on inventory age confirmation
□Applicable √Not applicable
17. Contract assets
□Applicable √Not applicable
18. Non-current assets or disposal groups held for sale
□Applicable √Not applicable
Recognition criteria and accounting treatment methods for non-current assets ordisposal groups classified as held for sale
□Applicable √Not applicable
Recognition criteria and reporting methods for termination of operations
□Applicable √Not applicable
19. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures andassociates.
Long-term equity investment is initially measured by the initial investment cost at the timeof being acquired. The initial investment cost for long-term equity investments obtained throughthe merger of enterprises under the same control shall be the share of the book value of theowner's equity of the merged party obtained on the merger date in the consolidated financialstatements of the ultimate controlling party; The difference between the initial investment costand the book value of the merger consideration shall be adjusted to the capital reserve (if it isnot sufficient to offset, it shall be offset against retained earnings). Long term equity investmentsobtained through mergers of enterprises not under the same control are initially invested at thecost of the merger (if the merger of enterprises not under the same control is achieved throughmultiple transactions in steps, the initial investment cost is the sum of the book value of the equityinvestments held by the acquired party before the purchase date and the newly addedinvestment cost on the purchase date). The initial investment costs of the long-term equity
investment acquired other than through merger are determined with the following methods: if aninvestment is acquired through the payment of cash, its initial investment cost consists of thepurchase price actually paid and the expenses, taxes and other necessary expenses directlyrelating to the acquisition of the investment; and if an investment is acquired through the offeringof equity securities, its initial investment cost is the fair value of the equity securities offered.
For the accounting of the long-term equity investment through which the Company canexercise control over the investees, the Company adopts the cost method in individual financialstatements. Control refers to the power over an investee, with which the investor enjoys variablereturn by participating in the investee’s related activities and is able to exercise its power overthe investee to affect the amount of return.In the cost method, the long-term equity investment is measured by initial investment cost.If the investment is added or recovered, the cost of long-term equity investment will be adjusted.The cash dividend or profit declared by the investees to be distributed is recognized as theinvestment income for the current period.
If the Group has joint control over or significant influence on the investee, the long-termequity investment will be measured with the equity method. Joint control refers to joint controlover an arrangement in accordance with related agreements, and decisions on the activitiesrelating to the arrangement shall be made only after the parties sharing the control reach anagreement. Significant influence refers to the power over the decision-making on the financialaffairs and business policies of the investee, but the investor does not have control or joint controlwith others over the formulation of those policies.
In the equity method, if the initial investment cost of long-term equity investment is higherthan the share enjoyed by the Group in the fair value of the investee’s identifiable net assets atinvestment, the excess will be recognized in the initial investment cost of the long-term equityinvestment; if the initial investment cost of long-term equity investment is lower than the shareenjoyed by the Group in the fair value of the investee’s identifiable net assets at investment, thedifference will be recognized in the profit or loss for the current period and the cost of the long-term equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, the investment gains orlosses and other comprehensive income shall be recognized, and the book value of the long-term equity investment shall be adjusted based on the share in the net gains or losses and othercomprehensive income realized by the investees to be enjoyed or assumed. The share in theinvestee’s net gains or losses to be enjoyed shall be determined based on the fair value of theinvestee’s identifiable assets at the acquisition of investment, according to the Group’saccounting policies and accounting periods and after net profits of the investee are adjusted withthe portion of gains or losses from the internal transactions with its associates and joint venturesthat is attributable to the investor based on the share to be enjoyed by it (but if the loss frominternal transactions falls in the assets impairment loss, it shall be recognized in full) offset,
except for the invested and sold assets that constitute businesses. The book value of long-termequity investment shall be reduced according to the share to be enjoyed by it in the profits orcash dividend declared by the investees to be distributed. For an investee’s net lossesrecognized by the Group, the book value of the long-term equity investment and other long-termequity that substantially constitute net investment in the investee shall be written down to zeroat maximum, except for the extra losses for which the Group is liable. For the investee’s otherchanges in shareholders’ equity other than net gains or losses, other comprehensive incomeand profit distribution, the book value of the long-term equity investment will be adjusted, andthe changes will be recognized in the shareholders’ equity.
20. Property investment
(1). In cost measurement model:
Depreciation or amortization methodsInvestment real estate refers to real estate held for the purpose of earning rent or capitalappreciation, or both.
Property investments are initially measured by cost. The subsequent expenses relating toan property investment will be recognized in the cost of the property investment if theeconomic benefits relating to the asset are very likely to flow in and the cost thereof can bemeasured reliably. Otherwise, they will be recognized in the profit or loss for the current periodat the time of being incurred.The Group subsequently measures its property investments with the cost model. Thedepreciation/amortization of property investments is calculated on a straight line basis. Theservice life, estimated net residual value and annual depreciation rate of property investmentsare as follows:
| Category | Service life | Estimated net residual value | Annual depreciation rate |
| Buildings and structures | 20-30 years | 4% | 3.2%-4.8% |
| Land use right | 40-70 years | - | 1.4%-2.5% |
21. Fixed assets
(1). Recognition requirements
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are verylikely to flow into the Group and its cost can be measured reliably. If meeting the aboverecognition requirement, the subsequent expenses relating to a fixed asset will be recognizedin the cost of the fixed asset, and the book value of the replaced part will be deleted; otherwise,the subsequent expenses will be recognized in the profit or loss for the current period at thetime of being incurred.
Fixed assets are initially measured by cost. The costs of purchasing a fixed asset includethe purchase price, related taxes and other expenses that are incurred before the fixed asset ismade to the predetermined ready-for-use status and are directly attributable to the asset.
The Group reviews and makes adjustment to, if necessary, the service life, estimatedresidual value and depreciation method of its fixed assets at least at the end of each year.
(2). Depreciation methods
√Applicable □Not applicable
| Category | Depreciation methods | Depreciation period (number of years) | Residual value rate | Annual depreciation rate |
| Buildings and structures | Straight-line method | 10-40 | 4% | 2.4%-9.6% |
| General equipment | Straight-line method | 5-10 | 4% | 9.6%-19.2% |
| Transportation equipment | Straight-line method | 6 | 4% | 16.0% |
22. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses,including the necessary expenses on the works incurred during the construction, the borrowingcosts incurred before the works reach the predetermined ready-for-use status that shall becapitalized and other related expenses.The construction in progress is transferred to fixed assets, investment real estate andlong-term deferred expenses when it reaches the expected serviceable condition. Thestandards are as follows:
| Standards for carrying forward fixed assets | |
| Buildings and structures | Actual start of use |
| Machinery equipment | Completion of installation and commissioning |
| Transportation equipment | Obtaining a transportation vehicle driving license |
| Other equipment | Actual start of use or completion of installation and debugging |
23. Borrowing costs
√Applicable □Not applicable
Borrowing costs that are directly attributable to the acquisition, construction or productionof the assets qualified for capitalization shall be capitalized, and other borrowing costs shall berecognized in the profit or loss for the current period.
When capital expenditures and borrowing costs have already occurred, and the necessaryacquisition or production activities to bring the asset to its intended usable or saleable statehave begun, borrowing costs begin to be capitalized.
The borrowing costs for the assets qualified for capitalization shall cease being capitalizedwhen the assets reach the predetermined ready-for-use or sale status after the acquisition,construction or production. The borrowing costs incurred subsequently will be recognized inthe profit or loss for the current period.
During the capitalization period, the capitalization amount of interest for each accountingperiod shall be determined according to the following method: specialized loans shall bedetermined based on the actual interest expenses incurred in this period, minus temporarydeposit interest income or investment income; The general borrowing used is calculated anddetermined based on the weighted average of the accumulated asset expenses exceeding thespecial borrowing portion multiplied by the weighted average interest rate of the generalborrowing used.
If an asset qualified for capitalization is interrupted abnormally for more than three monthsduring its acquisition, construction or production except due to the necessary procedures for itto reach the predetermined ready-for-use or sale status, the capitalization of its borrowingcosts will be suspended. The borrowing costs incurred during the interruption will berecognized as expenses and in the profit or loss for the current period until the acquisition,construction or production of the asset is resumed.
24. Biological assets
□Applicable √Not applicable
25. Oil and gas assets
□Applicable √Not applicable
26. Intangible assets
(1). Service life and its determination basis, estimated situation, amortization method orreview procedure
√Applicable □Not applicable
Goodwill is an intangible asset with an uncertain useful life. Such intangible assets are notamortized, and impairment testing is conducted annually regardless of whether there are signsof impairment; During each accounting period, its useful life is reviewed, and if there isevidence that its useful life is limited, accounting treatment is carried out according to the policyof intangible assets with limited useful life.
The remaining intangible assets are amortized using the straight-line method over theiruseful lives, with the following useful lives:
| Category | Service life | Determination basis |
| Land use right | 40-50 years | Term of land use rights |
| Software and software copyright | 10 years | Which is shorter between the contract period and the expected service life |
(2). The scope of R&D expenditure collection and related accounting treatment methods
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures anddevelopment expenditures. Research expenses are recognized in the profit or loss for thecurrent period at the time of being incurred. Development expenditures can be capitalized onlywhen all of the following conditions are met at the same time, that is, it is technically feasible tocomplete the intangible asset to make them usable or saleable; there is an intention to completethe intangible asset and use or sell it; the way for intangible assets to generate economic benefits,including the ability to prove that there are markets for the products generated by the intangibleassets or the intangible assets themselves. Intangible assets that will be used internally canprove their usefulness; there are sufficient technology, financial resources and other resourcesupports to complete the development of the intangible asset and ability to use or sell theintangible asset; the expenditure attributable to the development of such intangible asset can bereliably measured. Development expenditures that do not satisfy the above conditions areincluded in the current profits and losses when incurred.
27. Impairment of long-term assets
√Applicable □Not applicable
The impairment of assets other than inventory, deferred income tax assets, and financialassets is determined using the following method: on the balance sheet date, it is determinedwhether there are signs of possible impairment of assets. If there are signs of impairment, theGroup will estimate their recoverable amount and conduct impairment testing; For goodwillformed by business mergers, intangible assets with uncertain useful lives, and intangibleassets that have not yet reached a usable state, regardless of whether there are signs ofimpairment, impairment testing shall be conducted at least at the end of each year.
The recoverable value of an asset is determined based on the fair value of the asset lessthe disposal expenses or the present value of the expected future cash flows of the asset,whichever is higher. The Group estimates the recoverable value of each asset. For an assetwhose recoverable value is hard to be estimated, the Group estimates the recoverable value ofthe assets group which the asset belongs to. An assets group is identified based on whether
the main cash inflows from the Group are independent from the cash inflows from other assetsor assets groups.When the recoverable value of an asset or assets group is lower than its book value, theGroup will write down its book value to the recoverable value and the amount written down willbe recognized in the profit or loss for the current period; meanwhile, it will make provision forthe impairment thereof.As for the impairment test of goodwill, the book value of goodwill shall be allocated to therelevant asset groups or asset group combinations in a reasonable manner from the date ofpurchase. The relevant asset groups or asset group combinations refer to asset groups orasset group combinations that can benefit from the synergistic effects of enterprise mergers,and are not larger than the operating segments determined by the Group.
Compare the book value and recoverable amount of asset groups or asset groupcombinations that contain goodwill. If the recoverable amount is lower than the book value, theimpairment loss amount is first offset against the book value of goodwill allocated to the assetgroup or asset group combination. Then, based on the proportion of the book value of otherassets in the asset group or asset group combination except for goodwill, the book value ofother assets is proportionally offset.The above assets impairment loss will not be reversed during the subsequent accountingperiods.
28. Long-term prepaid expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and theamortization periods are as follows:
| Category | Amortization period |
| Architectural ornaments of buildings | 3-5 years |
| Advertising facilities | 3-5 years |
29. Contract liabilities
√Applicable □Not applicable
A contractual liability refers to an obligation to transfer goods or services to a customer forthe consideration received or receivable from the customer, such as the amount received bythe enterprise before the transfer of committed goods or services.
30. Employee compensations
(1). Accounting treatment of short-term compensations
√Applicable □Not applicable
The short-term compensations actually incurred during the accounting period when theemployees provide service for the Group are recognized as liabilities and are recognized in theprofit or loss for the current period or costs of related assets.
(2). Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance and unemploymentinsurance managed by the local government, as well as the enterprise annuity, and thecorresponding expenditures are included in the relevant asset cost or current profit and losswhen incurred.
(3). Accounting treatment of severance benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employeecompensation liabilities arising from the severance benefits will be recognized, and the amountwill be recognized in the profit or loss for the current period on the earlier date below: the datewhen the Group cannot unilaterally withdraw the severance benefits provided as a result of the
employment termination plan or downsizing proposal; or the date when the Group recognizesthe costs or expenses relating to the reorganization involving the payment of severancebenefits.
(4). Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
31. Estimated liabilities
√Applicable □Not applicable
Except for the contingent consideration and liabilities assumed in the merger ofenterprises not under the same control, obligations related to contingencies are currentobligations assumed by the Group and the performance of such obligations is likely to result inthe outflow of economic benefits from the Group. If the relevant amount can be reliablymeasured, the Group recognizes them as estimated liabilities.Estimated liabilities are initially measured based on the best estimate of the expensesrequired for the performance of related current obligations, and the risks, uncertainties andtime value of money relating to the contingent matters are also factored in. Review the bookvalue of estimated liabilities on the balance sheet date and make appropriate adjustments toreflect the current best estimate.
32. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settledshare-based payment. An equity-settled share-based payment refers to a deal in which theGroup uses shares or other equity instruments as the consideration for settlement to obtainservices.
The equity-settled share-based payment in exchange for services provided by employeesshall be measured at the fair value of the equity instruments granted to employees. If it can beexercised immediately after the grant, it shall be included in the relevant costs or expenses atfair value on the grant date, and the capital reserve shall be increased accordingly; if it cannotbe exercised until the service within the waiting period has been completed or the specifiedperformance conditions have been satisfied on each balance sheet date during the waitingperiod, the Group will, based on the best estimate of the number of exercisable equityinstruments, include the services acquired in the current period, as relevant costs or expensesbased on the fair value on the grant date, and increase the capital reserve accordingly . Thefair value of equity instruments is determined using market quotations, as detailed in Note XIII.2.
If the equity-settled share payment is canceled, it will be treated as an acceleratedexercise on the cancellation day, and the unrecognized amount shall be recognizedimmediately. If an employee or other party has option to satisfy the non-exercising conditionsbut fails to satisfy within the waiting period, it shall be treated as cancellation of equity-settledshare-based payment. However, if a new equity instrument is granted and if it is determinedthat the new equity instrument granted is used to replace the canceled equity instrument on thegrant date of the new equity instrument, the replacement equity instruments granted in thesame way shall be treated in the same way as that for the modification of the terms andconditions for the original equity instrument.
33. Preferred shares, perpetual bonds and other financial instruments
□Applicable √Not applicable
34. Revenue
(1). Disclosure of accounting policies adopted for revenue recognition and measurement
by business type
√Applicable □Not applicable
The group recognizes incomes when it has fulfilled its performance obligations in thecontract, that is, the customer has acquired the control over the relevant goods or services.The acquisition of the control over related goods or services means the ability to control theuse of the goods or the provision of the service and obtain almost all of the economic benefitsfrom them.
Commodity sales contracts
Sales contracts between the Group and customers typically include commitments totransfer goods, which may vary depending on the customer's agreement. As customers areable to benefit separately from the aforementioned goods or services or use them together withother readily available resources, and there is no significant integration, modification,customization, or high correlation between the aforementioned goods or services, the Groupconsiders them as clearly distinguishable goods and constitutes separate performanceobligations.
On the basis of comprehensive consideration of the following factors, the Grouprecognizes revenue at the time when the customer obtains control over the relevant goods: thecurrent right to receive payment for the goods, the transfer of the main risks and rewards ofownership of the goods, the transfer of legal ownership of the goods, the transfer of physicalassets of the goods, and the customer's acceptance of the goods.
Service contracts
The service contracts between the Group and customers usually include performanceobligations such as providing the use of shops in the China Commodities City markets and thesupporting services for operation , providing hotel accommodation and catering services,providing paid use services for funds to external parties of the Group, and providing collectionand payment services.
The use of shops in the Commodity City and its supporting services
Since customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the group, the Group regards them as aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. Under the output method, the Group determines the performanceprogress of the provision of the use of shops in the China Commodities City markets and thesupporting services for operation based on the number of using days of the shops When theperformance progress cannot be reasonably determined, if the cost incurred by the Group isexpected to be compensated, the income shall be recognized according to the amount of thecost incurred until the performance progress can be reasonably determined.
Hotel accommodation business
Since customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the group, the Group regards them as aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. In accordance with the output method, the Group determines theperformance progress of hotel accommodation services based on the number of stayingdays. . When the performance progress cannot be reasonably determined, if the cost incurredby the Group is expected to be compensated, the income shall be recognized according to theamount of the cost incurred until the performance progress can be reasonably determined.
Hotel catering business
For individual performance obligations in the provision of hotel catering services, theGroup prices hotel catering services separately, and uses the completion of hotel cateringservices as the point of income recognition.
Terminable paid use of funds services
Since customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the group, the Group regards them as aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. Under the output method, the Group determines the performanceprogress of the services for the fixed-term paid funding services based on the number of usingdays of funds. When the performance progress cannot be reasonably determined, if the cost
incurred by the Group is expected to be compensated, the income shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonablydetermined.
(2). Adopting different business models for similar businesses involves different revenuerecognition methods and measurement methods
□Applicable √Not applicable
35. Contract cost
√Applicable □Not applicable
The Group's assets related to contract costs include contract acquisition costs and contractperformance costs. According to their liquidity, they are presented in inventory, other currentassets and other non-current assets respectively.
If the incremental cost incurred by the Group to acquire a contract is expected to berecoverable, it is recognized as an asset as the contract acquisition cost, unless the amortizationperiod of the asset does not exceed one year.
If the cost incurred by the Group for the performance of the contract does not apply to thescope of the relevant standards such as inventory, fixed assets or intangible assets, and meetsthe following conditions at the same time, it is recognized as an asset as the cost of contractperformance:
(1) This cost is directly related to a current or expected contract, including direct labor,direct materials, manufacturing expenses (or similar expenses), costs clearly borne by thecustomer, and other costs incurred solely due to the contract;
(2) This cost increases the resources that the enterprise will use in the future to fulfill itscontractual obligations;
(3) This cost is expected to be recovered.
The Group amortizes the assets related to contract costs on the same basis as the revenuerecognition related to the assets, and includes them in the current profit and loss.
For assets related to contract costs, if the book value is higher than the difference betweenthe following two items, the Group will make provision for impairment for the excess part andrecognize it as asset impairment loss:
(1) The expected remaining consideration that the enterprise can obtain from the transferof goods or services related to the asset;
(2) The estimated cost to be incurred for the transfer of the relevant goods or services.
36. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received.If a government grant falls in monetary assets, it will be measured by the amount received orreceivable. If a government grant does not fall in monetary assets, it will be measured by fairvalue. If the fair value of a grant cannot be determined reliably, it will be measured by its nominalamount.
A government grant prescribed by government documents to be used to acquire or constructor otherwise form long-term assets will be deemed as an asset-related government grant; if nogovernment documents have express provisions, the grants that are used to acquire or constructor otherwise form long-term assets will be deemed as asset-related government grants andothers as income-related government grants.
The Group recognizes government subsidies received using the total amount method.
Government subsidies related to income, used to compensate for related costs or losses infuture periods, are recognized as deferred income and are recognized in this period's profit orloss or offset against related costs during the period of recognition of related costs or losses; Forcompensating for related costs or losses that have already occurred, they are directly recognizedin this period's profit and loss or offset against related costs. The Group recognizes governmentsubsidies received using the total amount method.
The asset-related government grants shall be used to offset the book value of related assets;or recognized as deferred income, and included in profit and loss in stages under a reasonableand systematic method during the useful life of the related assets (but government grantsmeasured at a nominal amount shall be directly included in the current profit and loss); if therelevant asset is sold, transferred, scrapped or damaged before the end of its useful life, thebalance of the undistributed deferred income shall be transferred to the current profit and losswhen the asset is disposal.
37. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
The Group recognizes deferred income tax with the balance sheet liability method basedon the temporary difference between the book value of assets and liabilities on the balancesheet date and the tax base and that between the book value of the items that have not beenrecognized as assets and liabilities but whose tax base can be determined according to the taxlaw and the tax base thereof.
All taxable temporary differences will be recognized as deferred income tax liabilities,unless:
(1) Taxable temporary differences arise in the following transactions: initial recognition ofgoodwill, or initial recognition of assets or liabilities arising from individual transactions with thefollowing characteristics: the transaction is not a business merger, the transaction does notaffect accounting profits or taxable income or deductible losses at the time of occurrence, andthe initially recognized assets and liabilities do not result in equal amounts of taxabletemporary differences and deductible temporary differences;
(2) For taxable temporary differences related to investments in subsidiaries, jointventures, and associates, the timing of the reversal of such temporary differences can becontrolled and it is likely that they will not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductionsthat can be carried forward to the subsequent years, the Group recognizes the deferredincome tax assets arising therefrom within the limit of the future taxable income that is verylikely to be obtained and used to be offset against the deductible temporary differences,deductible losses and tax deductions, unless:
(1) Deductible temporary differences arise in the following individual transactions: thetransaction is not a business merger, the transaction does not affect accounting profits ortaxable income or deductible losses at the time of occurrence, and the initially recognizedassets and liabilities do not result in an equal amount of taxable temporary differences anddeductible temporary differences;
(2) For deductible temporary differences related to investments in subsidiaries, jointventures, and associates, such temporary differences are likely to be reversed in theforeseeable future and are likely to receive taxable income used to offset such temporarydifferences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets andliabilities based on the applicable tax rate for the period when the assets are expected to berecovered or the liabilities are expected to be paid off, in accordance with the tax law, whichwill also reflect the impact of the way of the expected recovery of assets or repayment ofliabilities on the income tax on the balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheetdate. If it is very likely to be unable to acquire adequate taxable income to be offset against thebenefits of deferred income tax assets in the future, the book value of deferred income taxassets will be written down. On the balance sheet date, the Group re-evaluates theunrecognized deferred income tax assets and recognizes the same to the extent that it is verylikely to acquire adequate taxable income to reverse all or part of the deferred income taxassets.
If all the following requirements are met, deferred income tax assets and liabilities will bepresented in net amount after offsetting: the Group has the legal right to settle the currentincome tax assets and liabilities in net amount; the deferred income tax assets and liabilitiesare related to the income tax levied by an identical tax authority on an identical taxpayer, or are
related to the income tax levied by an identical tax authority on different taxpayers, but duringeach important period when the deferred income tax assets and liabilities are reversed, theinvolved taxpayers intend to settle the current income tax assets and liabilities in net amount oracquire assets or pay off debts simultaneously.
38. Lease
√Applicable □Not applicable
Judgment basis and accounting treatment methods for simplifying short-term leasesand low-value asset leases as a lessee
√Applicable □Not applicable
The Group recognizes leases with a lease term not exceeding 12 months and excludingpurchase options as short-term leases on the commencement date of the lease term; Leaseswith lower value when a single leased asset is considered a brand new asset are recognizedas low-value asset leases. The Group chooses not to recognize right-of-use assets and leaseliabilities for short-term leases and leases of low-value assets. In each period of the lease term,it is included in the relevant asset cost or current profit and loss on a straight-line basis.
Classification criteria and accounting treatment methods for leasing as a lessor
√Applicable □Not applicable
The lease that transfers virtually all the risks and rewards related to the ownership of theleased asset on the lease commencement date is a finance lease, and other leases areoperating leases.
Rental income from operating leases is recognised in profit or loss on a straight-line basisover each period of the lease term, and variable lease payments not included in lease receiptsare included in profit or loss for the current period when actually incurred. The capitalized initialdirect expenses shall be amortized on the same basis recognized with the rental income duringthe lease period, and shall be included in the current profit and loss in installments.
39. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Measurement of fair value
The Group measures the fair values of equity instruments investments on each balancesheet date. Fair value refers to the price received from the sale of an asset or paid for thetransfer of a liability by a market player in the orderly transactions on the measurement date.
For the assets and liabilities which are measured or disclosed by fair value in the financialstatements, the levels of fair value are determined based on the lowest-level input of importantsignificance for the overall measurement of fair values: Level 1 input is the unadjusted offerprice for an identical asset or liability that can be obtained in an active market on themeasurement date; Level 2 inputs are the inputs that are directly or indirectly observable forrelated assets or liabilities other than Level 1 inputs; Level 3 inputs are the inputs that areobservable for related assets or liabilities.On each balance date, the Group re-evaluates the assets and liabilities that are recognized inthe financial statements and keep being measured by fair value so as to determine whether tochange the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments,estimates and assumptions, which will affect the presented amounts and disclosure ofrevenue, expenses, assets and liabilities and the disclosure of contingent liabilities on thebalance sheet date. However, the uncertainty of these assumptions and estimates may resultin significant adjustments to the book value of future affected assets or liabilities.
Judgments
When applying the Group’s accounting policies, the management have made the followingjudgments which have had significant influence on the amounts recognized in the financialstatements:
Operating lease - as the lessor
The Group has signed lease contracts for the property investments. The Group thinks thataccording to the terms of the lease contracts, the Group retains all major risks andcompensations on the titles of those real estate properties and thus handles them as operatingleases.Partition between property investments and fixed assetsThe Group classifies the buildings and structures leased out other than for the mainbusinesses such as market and hotel services as well as the auxiliary land use rights thereofas property investments, including but not limited to the auxiliary banking and catering outletsfor market operation and the auxiliary service outlets for hotels. Other buildings and structuresleased out are classified as fixed assets.
Business model
The classification of financial assets at initial recognition depends on the Group’s businessmodel for the management of financial assets. When judging the business model, the Groupfactors in the enterprise evaluation, the way of reporting financial assets performance to keyofficers, the risks affecting the performance of financial assets, the way of managing financialassets and the way of related business management personnel obtaining remunerations.When assessing whether to aim at the collection of contractual cash flow, the Group needs toanalyze the reasons, time, frequency and value for sale of the financial assets to be soldbefore the expiry dates thereof.
Characteristics of contractual cash flow
The classification of financial assets at initial recognition depends on the characteristics ofthe contractual cash flow of the financial assets. For the judgment on whether the contractualcash flow is the repayment of principal and the payment of interest on outstanding principal,including the evaluation of the adjustment to the time value of money, it should be judgedwhether it is significantly different from the benchmark cash flow; for the financial assets withthe early repayment characteristic, it should be judged whether the fair value of the earlyrepayment characteristic is extremely low.
Uncertainties of estimates
The following are key assumptions regarding the future at the balance sheet date andother key sources of estimation uncertainty that may result in significant adjustments to thebook value of assets and liabilities in future accounting periods.
Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected credit lossmodel. To apply the model, the Group needs to make significant judgments and estimates andtake into account all reasonable and evidenced information, including forward-lookinginformation. When making these judgments and estimates, the Group infers the expectedchanges in the debtors’ credit risks based on their historical repayment data, in combinationwith the economic policies, macroeconomic indicators and industry risks. Different estimatesmay affect the provisions for impairment and the provision that has been made for impairmentmay not necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever islower. For the calculation of net realizable value, assumptions and estimates should be used. Ifthe management adjust the estimated price and the costs and expenses to be incurred untilthe completion, it will affect the estimate of the net realizable value of the inventory and thedifference will affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines, on the balance sheet date, whether the non-current assets otherthan financial assets have a sign of being impaired. Non-current assets other than financialassets are subject to impairment testing when there are indications that their book value isirrecoverable. When the book value of an asset or a group of assets is higher than itsrecoverable value, i.e. fair value less the disposal expenses or the present value of expectedfuture cash flow, whichever is higher, the asset or group has been impaired. For the fair valueless the disposal expenses, the Group refers to the agreed selling price or observable marketprice of the similar asset in a fair transaction, less the cost increase directly attributable to thedisposal of the asset. When predicting the present value of future cash flows, the managementmust estimate the expected future cash flows of the asset or group of assets and select an
appropriate discount rate. When identifying a group of assets, the management considerwhether the smallest identifiable group of assets can generate income and cash flowsindependently from other departments or units, or the income and cash inflows generatedthereby are mostly independent from other departments or units, and also take into accountthe way of managing or monitoring production and operating activities and the way of makingdecisions on the continued use or disposal of the asset. Please refer to Note VI. 21 for details.Goodwill impairmentThe Group tests goodwill for impairment at least annually. This requires estimating thepresent value of the future cash flows of the asset group or combination of asset groups towhich the goodwill is allocated. When estimating the present value of future cash flows, theGroup needs to estimate the cash flows generated by future asset groups or combinations ofasset groups, and at the same time select an appropriate discount rate to determine thepresent value of future cash flows. Please refer to Note VI. 27 for details.
Fair value of unlisted equity investmentThe Group determines the fair value of non-listed equity investments based on theexpected future cash flows discounted at the current discount rate of other financialinstruments with similar contractual terms and risk characteristics. This requires the Group toestimate the expected future cash flows, credit risk, volatility and discount rate, which bringsuncertainties.Development expensesWhen determining the amount of capitalization, management must make assumptions onthe expected future cash flow, the applicable discount rate, and the expected benefit period ofthe asset.
Deferred income tax assetsTo the extent that it is very likely for the Group to have enough taxable income to be offsetagainst the deductible losses, the Group shall recognize deferred income tax assets inconnection with the outstanding deductible losses. This requires the management to use lots ofjudgments to estimate the acquisition time and amount of the taxable income to be acquired inthe future to determine the amount of deferred income tax assets to be recognized, inconsideration of the tax payment planning strategy.Lessee incremental borrowing interest rateFor leases where the interest rate implicit in the lease cannot be determined, the Groupuses the lessee's incremental borrowing rate as the discount rate to calculate the present valueof the lease payments. When determining the incremental borrowing rate, the Group takes theobservable interest rate as the reference basis for determining the incremental borrowing rateaccording to the economic environment it is in. On this basis, the Group adjusts the referenceinterest rate according to its own situation, the underlying asset situation, the lease term, theamount of lease liabilities and other specific conditions of the lease business to obtain theapplicable incremental borrowing rate.
40. Changes in important accounting policies and accounting estimates
(1). Changes in important accounting policies
√Applicable □Not applicable
Unit: RMB
| Contents and reason for changes in accounting policies | Name of statement items that are significantly affected | Affected amount |
| According to Interpretation No. 16 of the Accounting Standards for Enterprises issued in 2022, for individual transactions that are not business combinations, do not affect accounting profits or taxable income (or deductible losses) at the time of transaction, and result in equal taxable temporary differences and deductible temporary differences due to initially recognized | NA | NA |
assets and liabilities, the exemption from initially recognizeddeferred income tax is not applicable
Other statements
This regulation took effect in the Group from January 1, 2023. Due to the implementationof this accounting treatment regulation, there will be no impact on the consolidated financialstatements of the Company and the financial statements of the parent company.
(2). Changes in important accounting estimates
□Applicable √Not applicable
(3). From 2023, the first implementation of new accounting standards or standard
interpretations would involve adjustments to the financial statements at the
beginning of the first implementation year
□Applicable √Not applicable
41. Other
□Applicable √Not applicable
VI. Taxes
1. Major taxes and tax rates
Major taxes and tax rates
√Applicable □Not applicable
| Tax | Base of taxation | Rate |
| VAT | The difference between the output tax amount calculated based on sales revenue and applicable tax rates, and the input tax amount allowed for deduction | The Company is a general taxpayer, and the taxable income is calculated for output tax at the tax rates of 13%, 9%, and 6%. Value added tax is calculated and paid based on the difference after deducting the input tax allowed for deduction in this period. In addition, for the sale of self-developed old real estate projects (the contract commencement date specified in the Construction Engineering Construction Permit is before April 30, 2016) and the rental of real estate acquired by the Group before April 30, 2016, the simplified tax calculation method is applicable, and the payable tax amount is calculated and paid at a 5% tax rate |
| Urban maintenance and construction tax | Actual paid value-added tax amount | Paid at 5% or 7% of the actual turnover tax paid. |
| Corporate income tax | Taxable Income | Except for the tax incentives listed in Note VI. 1 and the subsidiaries registered in Prague, Czech Republic, Hong Kong Special Administrative Region, Germany, Kenya, Rwanda, and Dubai, the corporate income tax of the Company and its subsidiaries within the Group is calculated and paid at 25% of the taxable income. |
| Land appreciation tax | Value added from the transfer of real estate | According to the ratio of value-added to deduction items, a four-level progressive tax rate (30% to 60%) will be implemented for exceeding the rate. |
| Real estate tax | Ad valorem taxation: deducting a certain proportion from the original value of the property Levy based on rent: rental income | If the tax is levied according to price, the amount is 1.2% of the balance of the original value of the property after a 30% deduction; if the tax is levied according to rental, the amount is 12% of the rental income. |
| Education surcharge | Actual paid value-added tax amount | Paid at 3% of the actual turnover tax paid. |
| Local education surcharge | Actual paid value-added tax amount | Paid at 2% of the actual turnover tax paid. |
| Cultural undertaking development fee | Advertising turnover | Calculated and paid at 3% of the advertising industry's revenue. |
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
| Taxpayer | Income tax rate (%) |
| Huafrica (Kenya) Investment Development Co., Limited | 30.00 |
| BETTER SILK ROAD RWANDA Ltd | 30.00 |
| European Huajie Investment Development Co., Ltd. | 19.00 |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | 16.50 |
| Hong Kong Better Silk Road Co., Ltd. | 16.50 |
| Yiwu China Commodity City (Germany) Co., Ltd. | 15.00 |
| Yiwu China Commodities City Big Data Co., Ltd. | 15.00 |
| BETTER SILK ROAD FZE | Not subject to corporate income tax |
2. Tax preference
√Applicable □Not applicable
According to the Announcement on the Filing of High-tech Enterprises recognized byZhejiang Provincial Accreditation Agency in 2022 issued by the Office of the National High-techEnterprise Accreditation Management Leading Group, Yiwu China Small Commodities City BigData Co., Ltd. has been listed in the filing list of high-tech enterprises recognized by ZhejiangProvincial Accreditation Agency in 2022 and passed the recognition of high-tech enterprises.The Certificate number is GR202233004297, date of issue: December 24, 2022, valid period:
three years. From January 1, 2022 to December 31, 2024, Yiwu China Commodities City BigData Co., Ltd. will be subject to a reduced corporate income tax rate of 15%.
3. Other
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 249,915.87 | 220,471.11 |
| Bank deposits | 2,922,477,584.50 | 1,990,327,169.17 |
| Other cash and cash equivalents | 7,820.24 | 751,331.02 |
| Total | 2,922,735,320.61 | 1,991,298,971.30 |
| In which: amount deposited abroad | 100,628,215.18 | 76,203,839.82 |
Other statementsMonetary funds with restricted usage rights are detailed in Note VII. 31. Assets withrestricted ownership or usage rights.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | Reasons and basis for determination |
| Financial assets that are measured by fair value and of which the changes in fair value are recognized in the profit or loss for the current period | 15,130,895.00 | 62,331,000.66 | / |
| Among them: | |||
| Equity instrument investment | 15,130,895.00 | 23,651,565.00 | / |
| Bank financing products | - | 38,679,435.66 | / |
| Total | 15,130,895.00 | 62,331,000.66 | / |
Other notes:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the reportingperiod
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the close
of the reporting period and having not been due as of the balance sheet date
□Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Notes receivable actually written off during the current period
□Applicable √Not applicable
Important notes receivable written off:
□Applicable √Not applicable
Description of notes written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance | Opening book balance |
| Within 1 year | ||
| In which: sub-items | ||
| Within 1 year | 587,700,197.38 | 211,121,943.94 |
| Within 1 year | 587,700,197.38 | 211,121,943.94 |
| 1 to 2 years | 10,408,255.33 | 8,026,629.17 |
| 2 to 3 years | 1,195,926.30 | 100,234.00 |
| Total | 599,304,379.01 | 219,248,807.11 |
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion (%) | Amount | Provision ratio (%) | Amount | Proportion (%) | Amount | Provision ratio (%) | |||
| Accounts receivable for which bad debt provision is made individually | 6,261,907.10 | 1.04 | 6,261,907.10 | 100.00 | - | 6,261,907.10 | 2.86 | 6,261,907.10 | 2.86 | - |
| Among them: | ||||||||||
| Lease receivables | 6,261,907.10 | 1.04 | 6,261,907.10 | 100.00 | - | 6,261,907.10 | 2.86 | 6,261,907.10 | 2.86 | - |
| Accounts receivable for which bad debt provision is made by group | 593,042,471.91 | 98.96 | 184,676.82 | 0.03 | 592,857,795.09 | 212,986,900.01 | 97.14 | 2,236,174.65 | 1.05 | 210,750,725.36 |
| Among them: | ||||||||||
| Provision for bad debt by combination of credit risk characteristics | 593,042,471.91 | 98.96 | 184,676.82 | 0.03 | 592,857,795.09 | 212,986,900.01 | 97.14 | 2,236,174.65 | 1.05 | 210,750,725.36 |
| Total | 599,304,379.01 | / | 6,446,583.92 | / | 592,857,795.09 | 219,248,807.11 | / | 8,498,081.75 | / | 210,750,725.36 |
Accounts receivable for which bad debt provision is made individually:
√Applicable □Not applicable
Unit: RMB
| Name | Closing balance | |||
| Book balance | Bad debt provision | Provision ratio (%) | Reason for provision | |
| Lease receivables | 6,261,907.10 | 6,261,907.10 | 100.00 | Due to deterioration of operating conditions, expected not to be recovered |
| Total | 6,261,907.10 | 6,261,907.10 | 100.00 | / |
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Combined provision items: combined provision for bad debts based on credit riskcharacteristics
Unit: RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Within 1 year | 587,700,197.38 | 63,360.15 | 0.01 |
| 1 - 2 years | 4,146,348.23 | 77,377.38 | 1.87 |
| 2 -3 years | 1,195,926.30 | 43,939.29 | 3.67 |
| Total | 593,042,471.91 | 184,676.82 | / |
Description of combined provision for bad debts:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2023 | 8,498,081.75 | 8,498,081.75 | ||
| Balance as of January 1, 2023 in the current period | ||||
| Provision made in the current period | 365,048.16 | 365,048.16 | ||
| Current reversal | 2,416,545.99 | 2,416,545.99 | ||
| Charging-off in current period | - | - | ||
| Current write-off | - | - | ||
| Balance as of December 31, 2023 | 6,446,583.92 | 6,446,583.92 |
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□Applicable √Not applicable
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for accounts receivable | 8,498,081.75 | 365,048.16 | 2,416,545.99 | 6,446,583.92 |
| Total | 8,498,081.75 | 365,048.16 | 2,416,545.99 | 6,446,583.92 |
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
(5). Five debtors with the highest closing balances of accounts receivable and contract
assets
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion in the total closing balance of accounts receivable and contract assets (%) | Closing balance of bad debt provision |
| Dalian Guanglong Zhongbang International Trade Co., Ltd. | 11,927,381.63 | - | 11,927,381.63 | 1.99 | 1,285.89 |
| Tianjin Jinqinglian Trading Co., Ltd. | 4,472,983.96 | - | 4,472,983.96 | 0.75 | 482.23 |
| Zhejiang Jinhui Construction Engineering Co., Ltd. | 3,530,755.55 | - | 3,530,755.55 | 0.59 | 380.65 |
| SWONIA, a.s. | 2,690,465.53 | - | 2,690,465.53 | 0.45 | 290.06 |
| Hangzhou Aiyun Network Technology Co., Ltd. | 1,232,622.22 | - | 1,232,622.22 | 0.21 | 132.89 |
| Total | 23,854,208.89 | - | 23,854,208.89 | 3.99 | 2,571.72 |
Other statementsNo
Other notes:
□Applicable √Not applicable
6. Contract assets
(1). Overview of contract assets
□Applicable √Not applicable
(2). Amount of and reasons for material changes to book value during the reportingperiod
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of contract assets with changes in lossprovisions in this period:
□Applicable √Not applicable
(4). Provision for bad debts of contract assets in this period
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(5). Actual written-off contract assets in this period
□Applicable √Not applicable
Among them, important contract assets write off
□Applicable √Not applicable
Description of contract assets written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
7. Accounts receivable financing
(1). Accounts receivable financing listed by classification
□Applicable √Not applicable
(2). Accounts receivable financing pledged by the Company at the end of the period
□Applicable √Not applicable
(3). Accounts receivable financing that has been endorsed or discounted by theCompany at the end of the period and has not yet matured on the balance sheet date
□Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the financing book balance of accounts receivable withchanges in loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Accounts receivable financing actually written off in this period
□Applicable √Not applicable
Among them, important accounts receivable financing written off
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
(7). Changes in accounts receivable financing and changes in fair value in this period:
□Applicable √Not applicable
(8). Other notes:
□Applicable √Not applicable
8. Prepayments
(1). Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing balance | Opening balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1 year | 969,194,841.33 | 98.29 | 600,114,288.07 | 99.02 |
| 1 to 2 years | 12,339,052.53 | 1.25 | 5,252,760.18 | 0.87 |
| 2 to 3 years | 4,404,721.24 | 0.45 | 240,000.00 | 0.04 |
| Over 3 years | 124,000.00 | 0.01 | 450,000.00 | 0.07 |
| Total | 986,062,615.10 | 100.00 | 606,057,048.25 | 100.00 |
Explanation for failure to settle the prepayments with an account age longer than one year andin important amounts:
No
(2). Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
| Debtor | Closing balance | Proportion in total closing balance of prepayments (%) |
| Five prepayments with the highest closing balances | 361,029,851.26 | 36.61 |
| Total | 361,029,851.26 | 36.61 |
Other statementsNo
Other statements
□Applicable √Not applicable
9. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 115,279,387.63 | 419,398,092.62 |
| Total | 115,279,387.63 | 419,398,092.62 |
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not applicable
(2). Significant overdue interest
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of interest receivable due to changes inloss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of dividends receivable due to changesin loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance | Opening book balance |
| Within 1 year | ||
| In which: sub-items | ||
| Within 1 year | 51,791,601.59 | 53,134,184.05 |
| Within 1 year | 51,791,601.59 | 53,134,184.05 |
| 1 to 2 years | 41,019,455.29 | 12,295,130.76 |
| 2 to 3 years | 5,014,989.22 | 341,676,912.95 |
| Over 3 years | 21,509,679.17 | 16,433,656.30 |
| Bad debt provision for other receivables | -4,056,337.64 | -4,141,791.44 |
| Total | 115,279,387.63 | 419,398,092.62 |
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Withholdings, deposit and margin | 107,984,533.23 | 88,707,661.45 |
| Receivables from export tax rebate | 9,508,128.96 | 10,041,570.82 |
| Reserve | 1,843,063.08 | 1,003,739.70 |
| Financial assistance receivable from joint ventures | - | 323,786,912.09 |
| Total | 119,335,725.27 | 423,539,884.06 |
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2023 | 4,141,791.44 | 4,141,791.44 | ||
| Balance as of January 1, 2023 in the current period | ||||
| Provision made in the current period | 43,219.60 | 43,219.60 | ||
| Current reversal | 128,673.40 | 128,673.40 | ||
| Charging-off in the current period | - | - | ||
| Current write-off | - | - | ||
| Balance as of December 31, 2023 | 4,056,337.64 | 4,056,337.64 |
Classification basis and bad debt provision ratio for each stageNo
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether thecredit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for other receivables | 4,141,791.44 | 43,219.60 | 128,673.40 | 4,056,337.64 |
| Total | 4,141,791.44 | 43,219.60 | 128,673.40 | 4,056,337.64 |
Among them, important recovered or reversed amounts:
□Applicable √Not applicable
Other statementsNo
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
Among them, important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | Weight in the total closing balance of other receivables (%) | Nature of receivable | Account age | Closing balance of bad debt provision |
| Yiwu Taxation Bureau, State Administration of Taxation | 9,508,128.96 | 8.25 | Export tax rebate | Within 1 year | - |
| Yiwu Junhuhui Entertainment Co., Ltd | 5,118,245.58 | 4.44 | Transactions between companies | Within 1 year | - |
| FUNDACION PARA EL INTERCAMBIO ENTRE YIWU Y ESPANA | 4,070,040.76 | 3.53 | Advance payment | Within 1 year | - |
| Weihai Wentai Doors and Windows Co., Ltd | 3,980,000.00 | 3.45 | Transactions between companies | Within 1 year | - |
| Yiwu Shengran Trading Co., Ltd. | 3,757,200.00 | 3.26 | Advance payment | Within 1 year | - |
| Total | 26,433,615.30 | 22.93 | / | / |
(7). Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
10. Inventory
(1). Classification of inventory
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | |
| Raw materials | 159,406.39 | - | 159,406.39 | 555,462.87 | - | 555,462.87 |
| Finished goods | 162,423,278.28 | - | 162,423,278.28 | 212,470,958.56 | - | 212,470,958.56 |
| Work-in-progress materials | 4,042,462.18 | - | 4,042,462.18 | 2,445,689.69 | - | 2,445,689.69 |
| Development cost | 67,478,414.27 | 28,303,338.06 | 39,175,076.21 | 67,907,950.27 | 28,303,338.06 | 39,604,612.21 |
| Development products | 1,041,444,157.85 | - | 1,041,444,157.85 | 1,075,274,520.54 | - | 1,075,274,520.54 |
| Total | 1,275,547,718.97 | 28,303,338.06 | 1,247,244,380.91 | 1,358,654,581.93 | 28,303,338.06 | 1,330,351,243.87 |
(2). Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Provision | Other | Reversal or charge-off | Other | |||
| Development cost | 28,303,338.06 | - | - | - | - | 28,303,338.06 |
| Total | 28,303,338.06 | - | - | - | - | 28,303,338.06 |
The reason for the reversing or charging off provision for inventory depreciation in this period
□Applicable √Not applicable
Provision for inventory depreciation by combination
□Applicable √Not applicable
The provision standards for provision for inventory depreciation by combination
□Applicable √Not applicable
(3). The capitalized amount of borrowing costs contained in the closing balance ofinventory and its calculation criteria and basis
√Applicable □Not applicable
As of December 31, 2023, inventory with a book value of RMB 35,797,443.87 (December31, 2022: RMB 35,797,443.87) was capitalized from borrowing costs. In 2023, the capitalizedamount of inventory borrowing costs for the Group was RMB 0.00 (2022: RMB 0.00), and thecumulative capitalized amount of borrowing costs was RMB 35,797,443.87 (2022: RMB35,797,443.87)
(4). Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Haicheng Phase I Business Street | 67,907,950.27 | - | 429,536.00 | 67,478,414.27 |
| Total | 67,907,950.27 | - | 429,536.00 | 67,478,414.27 |
Inventory-Developed Products Unit: RMB
| Item | Opening balance | Increase | Decrease in | Other | Closing balance |
| in the current period | the current period | transfer-out | |||
| Haicheng Phase I Business Street | 915,616,130.79 | 90,000.00 | - | - | 915,706,130.79 |
| Haicheng Phase II Business Street | 159,658,389.75 | - | 33,920,362.69 | - | 125,738,027.06 |
| Total | 1,075,274,520.54 | 90,000.00 | 33,920,362.69 | - | 1,041,444,157.85 |
11. Held-for-sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
Debt investments due within one year
□Applicable √Not applicable
Other debt investments due within one year
□Applicable √Not applicable
Other statement for non-current assets due within one yearNo
13. Other current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| To-be-deducted input tax | 326,795,702.79 | 146,697,598.28 |
| Payment business reserve | 313,869,496.74 | 367,484,914.87 |
| Advance income tax | 17,252,758.70 | 113,127,305.76 |
| To-be-certified input tax | 5,662,735.21 | 5,348,152.36 |
| Entrusted loans to the market traders | 1,737,479.42 | 1,737,479.42 |
| Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
| Total | 665,132,672.86 | 634,209,950.69 |
Other statementsNo
14. Debt investments
(1). Overview of debt investment
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Entrusted Loans | 48,073,333.34 | - | 48,073,333.34 | 48,079,561.64 | - | 48,079,561.64 |
| Total | 48,073,333.34 | - | 48,073,333.34 | 48,079,561.64 | - | 48,079,561.64 |
Changes in provision for impairment of debt investments in this period
□Applicable √Not applicable
(2). Important debt investment as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||||||
| Book value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | Book value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | |
| Chengdu Trade City entrusted loan | 48,000,000.00 | 5.5% | 5.5% | December 19, 2024 | - | 48,000,000.00 | 5.5% | 5.5% | December 19, 2024 | - |
| Total | 48,000,000.00 | / | / | / | - | 48,000,000.00 | / | / | / | - |
(3). Provision for impairment
□Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
No
Explanation of significant changes in the book balance of debt investments with changes in lossprovisions in this period:
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether thereis significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Debt investments actually written off in this period
□Applicable √Not applicable
Important debt investments written off among them
□Applicable √Not applicable
Description of debt investments written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
15. Other debt investments
(1). Overview of other debt investment
□Applicable √Not applicable
Changes in provision for impairment of other debt investments in this period
□Applicable √Not applicable
(2). Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3). Provision for impairment
□Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
No
Explanation of significant changes in the book balance of other debt investments with changesin loss provisions in this period:
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether thereis significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Other debt investments actually written off in this period
□Applicable √Not applicable
Important other debt investments written off among them
□Applicable √Not applicable
Description of other debt investments written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1). Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | Range of discount rate | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
| Guarantee deposit | 7,270,907.13 | - | 7,270,907.13 | 8,422,485.53 | - | 8,422,485.53 | 2.78%-7.55% |
| Financial assistance receivable from joint ventures | 270,755,772.12 | - | 270,755,772.12 | 269,877,115.20 | - | 269,877,115.20 | 0.00%-6.74% |
| Total | 278,026,679.25 | - | 278,026,679.25 | 278,299,600.73 | - | 278,299,600.73 | / |
(2). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(3). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of long-term accounts receivable withchanges in loss provisions in this period:
□Applicable √Not applicable
Amount of bad debt provision for the current period and the basis for assessing whether there issignificant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(5). Actual long-term accounts receivable written off in this period
□Applicable √Not applicable
Important long-term accounts receivable written off among them
□Applicable √Not applicable
Description of long-term accounts receivable written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
17. Long-term equity investment
(1). Long term equity investment situation
√Applicable □Not applicable
Unit: RMB
| Investee | Opening Balance | Change in the current period | Closing Balance | Closing balance of impairment provision | |||
| Decrease in investment | Investment gains or losses recognized with the equity method | Adjustment of other comprehensive income | Other | ||||
| 1. Joint ventures | |||||||
| Yiwu Shanglv | 396,972,448.93 | - | 38,957,479.65 | - | - | 435,929,928.58 | - |
| Yiwu Rongshang Property Co., Ltd. | 65,650,902.46 | - | -205.43 | - | - | 65,650,697.03 | - |
| Yiwu Chuangcheng Property | 28,449,292.72 | - | -763,659.31 | - | - | 27,685,633.41 | - |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 75,740,065.56 | - | 851,479,615.72 | - | - | 927,219,681.28 | - |
| Other | 35,311,309.47 | - | -1,354,416.29 | - | - | 33,956,893.18 | 3,327,216.16 |
| Sub-total | 602,124,019.14 | - | 888,318,814.34 | - | - | 1,490,442,833.48 | 3,327,216.16 |
| 2. Associates | |||||||
| Huishang Micro-finance | 78,209,979.82 | - | 377,956.29 | - | - | 78,587,936.11 | - |
| Huishang Zijing | 80,251,875.33 | - | -13,450,927.90 | - | - | 66,800,947.43 | - |
| Chouzhou Financial Lease | 489,205,549.91 | - | 85,753,216.38 | - | - | 574,958,766.29 | - |
| Yiwu China Commodities City Investment Management Co., Ltd. | 9,508,049.22 | - | - | - | - | 9,508,049.22 | 9,508,049.22 |
| Yiwu China Commodity City Fuxing Investment Center (Limited Liability Partnership) | 102,918,559.00 | - | - | - | - | 102,918,559.00 | - |
| Pujiang Lvgu Property Co., Ltd. | 378,839,597.00 | - | -29,197,911.90 | - | - | 349,641,685.10 | - |
| Yiwu China Commodities City Property Development Co., Ltd. | 2,985,480,694.55 | - | 136,963,695.55 | - | - | 3,122,444,390.10 | - |
| Yiwu Hongyi Equity Investment Fund Partnership | 945,642,085.02 | 50,000,000.00 | 9,191,662.25 | - | - | 904,833,747.27 | - |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | 145,563,439.33 | - | -13,581,395.16 | - | - | 131,982,044.17 | - |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | 135,174,717.38 | - | 3,192,604.81 | - | - | 138,367,322.19 | - |
| Other | 93,389,619.60 | - | -31,709,574.74 | 885,012.68 | 2,563,433.73 | 65,128,491.27 | - |
| Sub-total | 5,444,184,166.16 | 50,000,000.00 | 147,539,325.58 | 885,012.68 | 2,563,433.73 | 5,545,171,938.15 | 9,508,049.22 |
| Total | 6,046,308,185.30 | 50,000,000.00 | 1,035,858,139.92 | 885,012.68 | 2,563,433.73 | 7,035,614,771.63 | 12,835,265.38 |
(2). Impairment testing of long-term equity investments
□Applicable √Not applicable
Other statementsProvision for impairment of long-term equity investment：
Unit: RMB
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Yiwu China Commodities City Investment Management Co., Ltd. [Note 1] | 9,508,049.22 | - | - | 9,508,049.22 |
| Other | 3,327,216.16 | - | - | 3,327,216.16 |
| Total | 12,835,265.38 | - | - | 12,835,265.38 |
Note 1: In 2017, CCCF, a wholly-owned subsidiary of the Group, and Shanghai Fuxing Industrial Group Co., Ltd. (hereinafter referred to as "Fuxing")jointly established Industrial Fund Yiwu China Commodities City Fuxing Investment Center (LLP) (hereinafter referred to as the "FOF"), the Fund ofFunds has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LLP) (hereinafter referred to as "Shangfu Chuangzhi Fund").CCCF, as a limited partner, subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-in capital was RMB
102.92 million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing. CCCF alsocontributed RMB 9.8 million, 49% of total shares, to jointly establish Yiwu China Commodity City Investment Management Co., Ltd. (hereinafter referredto as “CCCIM”) with Fuxing as the general partner of the above-mentioned FOF and sub-funds. The FOF and CCCIM are both under the control ofFuxing and are associates of CCCF.
As a limited partner of Shangfu Chuangzhi Fund, CCCF has subscribed and paid in a capital contribution of RMB 617.51 million. Since the capitalcontribution was guaranteed by Fuxing's fixed income, it was recognized as other non-current financial assets. The above paid-in capital contributionmade by CCCF to the FOF has been contributed to Shangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through theFOF as a limited partner. With the capital contribution from the FOF as a limited partner and CCCF’s capital contribution to Shangfu Chuangzhi Fund
as a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB 820.54 million to subscribe for the increase in the registered capital ofHubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected ofhaving committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. wasfrozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, onDecember 31, 2023, the Group’s investment in the FOF and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was noindication of impairment of the underlying assets. Although they were still frozen, that had no impact on the Group’s equity. Therefore, there was noimpairment. However, for the equity investment in CCCIM, a full impairment provision has been made since 2018.
18. Other equity instruments investment
(1). Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Change in the current period | Closing balance | Dividend income recognized in this period | Accumulated gains recognized in other comprehensive income | Reason for designing it as measured at fair value through other comprehensive income |
| Gains recognized in other comprehensive income for this period | ||||||
| Shenwan Hongyuan Group Co., Ltd. | 499,200,803.85 | 57,696,575.32 | 556,897,379.17 | 3,762,820.14 | 3,271,948.17 | Non-trading |
| Total | 499,200,803.85 | 57,696,575.32 | 556,897,379.17 | 3,762,820.14 | 3,271,948.17 | / |
(2). Description of termination of recognition in this period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
5. Unit: RMB
| Item | Closing balance | Opening balance |
| PE investment | 1,222,483,421.12 | 1,242,537,387.23 |
| Unlisted equity investment | 161,914,541.90 | 210,030,495.82 |
| NEEQ equity investment | 37,171,941.17 | 47,739,679.08 |
| Total | 1,421,569,904.19 | 1,500,307,562.13 |
Other notes:
□Applicable √Not applicable
20. Property investment
Measurement models
(1). Property investment measured by cost
Unit: RMB
| Item | Buildings and structures | Land use right | Total |
| I. Original book value | |||
| 1. Opening balance | 3,066,726,500.66 | 441,780,232.93 | 3,508,506,733.59 |
| 2. Increase in the current period | 1,446,214,861.97 | - | 1,446,214,861.97 |
| (2) Inventory\fixed assets\construction in progress changed into property investment | 1,446,214,861.97 | - | 1,446,214,861.97 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 4,512,941,362.63 | 441,780,232.93 | 4,954,721,595.56 |
| II. Accumulated depreciation and accumulated amortization | |||
| 1. Opening balance | 564,165,088.47 | 92,698,464.70 | 656,863,553.17 |
| 2. Increase in the current period | |||
| (1) Provision or amortization | 142,216,973.12 | 11,431,703.70 | 153,648,676.82 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 706,382,061.59 | 104,130,168.40 | 810,512,229.99 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 3,806,559,301.04 | 337,650,064.53 | 4,144,209,365.57 |
| 2. Opening book value | 2,502,561,412.19 | 349,081,768.23 | 2,851,643,180.42 |
(2). Information of investment real estate without property right certificates
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Reasons for having not obtained the ownership certificate |
| Trading Station of Yiwu CCC Warehousing Park | 88,021,224.47 | Completion settlement not completed |
(3). Impairment testing of investment real estate using cost measurement model
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposalexpenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected futurecash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and theinformation used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company'sprevious year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary HaichengYiwu China Commodities City Investment Development Co., Ltd. and the Group's branchInternational Production Materials Market Branch of Zhejiang China Commodities City GroupCo., Ltd., impairment tests were conducted on the Haicheng main market and Yixi ProductionMaterials Market belonging to the market segment, as well as Haicheng Market Hotelbelonging to the hotel segment. Please refer to Note VII. 21.
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 4,940,523,363.51 | 5,220,882,784.47 |
| Total | 4,940,523,363.51 | 5,220,882,784.47 |
Other notes:
□Applicable √Not applicable
Fixed assets
(1). Overview of fixed assets
√Applicable □Not applicable
Unit: RMB
| Item | Buildings and structures | Machinery equipment | Transportation equipment | Total |
| I. Original book value: | ||||
| 1. Opening balance | 7,924,300,361.81 | 3,987,303,785.61 | 9,920,098.37 | 11,921,524,245.79 |
| 2. Increase in the current period | 103,489,776.24 | 59,443,492.06 | 230,217.00 | 163,163,485.30 |
| (1) Purchase | 587,658.47 | 17,094,039.39 | 230,217.00 | 17,911,914.86 |
| (2) Changeover from construction in progress | 102,902,117.77 | 42,349,452.67 | - | 145,251,570.44 |
| 3. Decrease in the current period | 113,908,722.94 | 12,215,830.43 | - | 126,124,553.37 |
| (1) Disposal or retirement | 108,701,469.92 | 11,913,960.30 | - | 120,615,430.22 |
| (2) Completion settlement differences | 5,207,253.02 | 8,449.32 | - | 5,215,702.34 |
| (3) Other transfer-out | - | 293,420.81 | - | 293,420.81 |
| 4. Closing balance | 7,913,881,415.11 | 4,034,531,447.24 | 10,150,315.37 | 11,958,563,177.72 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 3,021,987,133.97 | 3,200,000,153.08 | 7,490,706.42 | 6,229,477,993.47 |
| 2. Increase in the current period | 298,354,508.54 | 80,400,046.49 | 758,901.82 | 379,513,456.85 |
| (1) Provision | 298,354,508.54 | 80,400,046.49 | 758,901.82 | 379,513,456.85 |
| 3. Decrease in the current period | 50,845,929.81 | 11,269,174.15 | - | 62,115,103.96 |
| (1) Disposal or retirement | 50,845,929.81 | 11,129,116.48 | - | 61,975,046.29 |
| (2) Other changeover | - | 140,057.67 | - | 140,057.67 |
| 4. Closing balance | 3,269,495,712.70 | 3,269,131,025.42 | 8,249,608.24 | 6,546,876,346.36 |
| III. Depreciation provision | ||||
| 1. Opening balance | 471,163,467.85 | - | - | 471,163,467.85 |
| 4. Closing balance | 471,163,467.85 | - | - | 471,163,467.85 |
| IV. Book value | ||||
| 1. Closing book value | 4,173,222,234.56 | 765,400,421.82 | 1,900,707.13 | 4,940,523,363.51 |
| 2. Opening book value | 4,431,149,759.99 | 787,303,632.53 | 2,429,391.95 | 5,220,882,784.47 |
(2). Temporarily idle fixed assets
□Applicable √Not applicable
(3). Fixed assets leased out through operating lease
□Applicable √Not applicable
(4). Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Reasons for having not obtained the ownership certificate |
| Liaoning Xiliu Yiwu China Commodity City | 261,378,675.92 | Completion settlement not completed |
| Huangyuan Clothing Market | 230,908,429.73 | Completion settlement not completed |
| CCC Hotel | 48,587,015.17 | Completion settlement not completed |
| Total | 540,874,120.82 |
(5). Impairment testing of fixed assets
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deductingdisposal expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected futurecash flows
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Recoverable amount | Impairment amount | Years of the prediction period | Key parameters for the prediction period | Key parameters for the stable period | Basis for determining key parameters for the stable period |
| Haicheng Main Market | 646,233,802.62 | 844,381,624.74 | - | 5 | Revenue growth rate, profit margin, discount rate | Perpetual growth rate, discount rate | Historical annual income analysis, gross profit analysis, CPI index |
| Yixi Production Materials Market | 913,962,477.74 | 960,359,206.56 | - | 5 | Revenue growth rate, profit margin, discount rate | Perpetual growth rate, discount rate | Historical annual income analysis, gross profit analysis, CPI index |
| Haicheng Market Hotel | 36,475,480.54 | 38,083,284.04 | - | 5 | Revenue growth rate, profit margin, discount rate | Perpetual growth rate, discount rate | Historical annual income analysis, gross profit analysis, CPI index |
| Total | 1,596,671,760.90 | 1,842,824,115.34 | - | / | / | / | / |
Reasons for significant discrepancies between the aforementioned information and theinformation used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company'sprevious year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Disposal of fixed assets
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 3,955,959,200.32 | 2,860,064,818.36 |
| Total | 3,955,959,200.32 | 2,860,064,818.36 |
Other notes:
□Applicable √Not applicable
Construction in progress
(1). Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| The Yiwu Comprehensive Bonded Zone Project | 1,221,353,672.38 | - | 1,221,353,672.38 | 1,853,596,168.27 | - | 1,853,596,168.27 |
| Global Digital Free Trade Center | 753,285,037.73 | - | 753,285,037.73 | 71,878,178.97 | - | 71,878,178.97 |
| S3 Logistics Park | 646,823,075.05 | - | 646,823,075.05 | 304,000,538.70 | - | 304,000,538.70 |
| Yiwu International Digital Logistics Market | 630,797,491.91 | - | 630,797,491.91 | 116,022,418.71 | - | 116,022,418.71 |
| S2 Logistics Park | 580,571,402.07 | - | 580,571,402.07 | 235,339,023.06 | - | 235,339,023.06 |
| The Chian West Sea tourism project | 70,693,880.52 | - | 70,693,880.52 | 70,003,472.35 | - | 70,003,472.35 |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 |
| The Zhimei Dachen tourism project | 24,438,877.36 | - | 24,438,877.36 | 22,801,228.71 | - | 22,801,228.71 |
| Yiwu Digital Trade Industrial Park | - | - | - | 158,150,730.63 | - | 158,150,730.63 |
| Other projects | 340,316.93 | - | 340,316.93 | 617,612.59 | - | 617,612.59 |
| Total | 3,960,594,260.28 | -4,635,059.96 | 3,955,959,200.32 | 2,864,699,878.32 | -4,635,059.96 | 2,860,064,818.36 |
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB 10,000
| Item | Budget | Opening balance | Increase in the current period | Amount changed into fixed assets | Closing balance | Ratio of accumulated investment to budget (%) | Progress of project | Accumulated capitalized interest | In which: capitalized interest in the current period | Interest capitalization ratio for the current period (%) | Source of funds |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 180,000.00 | 3,229.05 | - | - | 3,229.05 | 96.32 | Shutdown | 154.61 | - | / | Self-owned/financing |
| Zhimei Dachen Project | 6,000.00 | 2,280.13 | 163.76 | - | 2,443.89 | 97.28 | Under construction | - | - | / | Self-owned |
| Chi’an Xihai Project | 8,000.00 | 7,000.35 | 69.04 | - | 7,069.39 | 88.37 | Under construction | - | - | / | Self-owned |
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | 185,359.62 | 71,692.37 | 134,916.62 | 122,135.37 | 46.87 | Under construction | 4,262.31 | 2,257.11 | 3.61 | Self-owned |
| Yiwu Digital Trade Industrial Park | 39,579.00 | 15,815.07 | 18,456.04 | 34,271.11 | - | 100.00 | completed | - | - | / | Self-owned |
| Global Digital Free Trade Center | 832,082.00 | 7,187.82 | 68,140.68 | - | 75,328.50 | 1.79 | Under construction | 842.44 | 736.69 | 3.20 | Self-owned |
| S2 Logistics Park | 108,000.00 | 23,533.90 | 34,523.24 | - | 58,057.14 | 53.76 | Under construction | 893.83 | 893.83 | 3.00 | Self-owned |
| S3 Logistics Park | 132,000.00 | 30,400.05 | 34,282.26 | - | 64,682.31 | 49.00 | Under construction | 1,282.92 | 967.29 | 1.90 | Self-owned/financing |
| Yiwu International Digital Logistics Market | 113,600.00 | 11,602.24 | 51,477.51 | - | 63,079.75 | 55.53 | Under construction | 755.80 | 656.22 | 1.60 | Self-owned/financing |
| Other | / | 61.76 | 25.30 | 53.03 | 34.03 | / | / | - | - | - | / |
| Total | 2,043,511.00 | 286,469.99 | 278,830.20 | 169,240.76 | 396,059.43 | / | / | 8,191.91 | 5,511.14 | / | / |
(3). Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
(4). Impairment testing of construction in progress
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the information used in previous year's impairmenttesting or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previous year’s impairment testing and the actualsituation of that year
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary Haicheng Yiwu China Commodities City Investment DevelopmentCo., Ltd. and the Group's branch International Production Materials Market Branch of Zhejiang China Commodities City Group Co., Ltd., impairmenttests were conducted on the Haicheng main market and Yixi Production Materials Market belonging to the market segment, as well as HaichengMarket Hotel belonging to the hotel segment. Please refer to Note VII. 21.
Construction materials
(1). Engineering materials
□Applicable √Not applicable
23. Bearer biological asset
(1). Bearer biological asset measured by cost
□Applicable √Not applicable
(2). Impairment testing of productive biological assets using cost measurement model
□Applicable √Not applicable
(3). Bearer biological asset measured by fair value
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
24. Oil and gas assets
(1) Situation of oil and gas assets
□Applicable √Not applicable
(2) Impairment testing of oil and gas assets
□Applicable √Not applicable
Other notes:
No
25. Right-of-use assets
(1) Situation of right-of-use assets
√Applicable □Not applicable
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original book value | |||
| 1. Opening balance | 156,223,496.12 | 125,879,033.69 | 282,102,529.81 |
| 2. Increase in the current period | 315,934.33 | - | 315,934.33 |
| (1) Lease in | 315,934.33 | - | 315,934.33 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 156,539,430.45 | 125,879,033.69 | 282,418,464.14 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 53,771,643.53 | 10,627,975.47 | 64,399,619.00 |
| 2. Increase in the current period | 30,562,888.65 | 6,582,122.65 | 37,145,011.30 |
| (1) Provision | 30,562,888.65 | 6,582,122.65 | 37,145,011.30 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 84,334,532.18 | 17,210,098.12 | 101,544,630.30 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 72,204,898.27 | 108,668,935.57 | 180,873,833.84 |
| 2. Opening book value | 102,451,852.59 | 115,251,058.22 | 217,702,910.81 |
(2) Impairment testing of right-of-use assets
□Applicable √Not applicable
Other notes:
No
26. Intangible assets
(1). Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
| Item | Land use right | Software and software copyright | Total |
| I. Original book value | |||
| 1. Opening balance | 8,087,572,660.11 | 194,975,359.61 | 8,282,548,019.72 |
| 2. Increase in the current period | - | 30,838,582.77 | 30,838,582.77 |
| (1) Purchase | - | 17,916,745.31 | 17,916,745.31 |
| (2) Internal R&D | - | 12,921,837.46 | 12,921,837.46 |
| 3. Decrease in the current period | 21,856,515.55 | 12,621,637.29 | 34,478,152.84 |
| (1) Disposal | 21,856,515.55 | 790,040.00 | 22,646,555.55 |
| (2) Other changeover | - | 11,831,597.29 | 11,831,597.29 |
| 4. Closing balance | 8,065,716,144.56 | 213,192,305.09 | 8,278,908,449.65 |
| II. Accumulated amortization | |||
| 1. Opening balance | 1,802,910,260.76 | 17,788,068.60 | 1,820,698,329.36 |
| 2. Increase in the current period | 200,152,451.32 | 29,595,186.37 | 229,747,637.69 |
| (1) Provision | 200,152,451.32 | 29,595,186.37 | 229,747,637.69 |
| 3. Decrease in the current period | 7,210,729.33 | 2,711,290.03 | 9,922,019.36 |
| (1) Disposal | 7,210,729.33 | 728,860.36 | 7,939,589.69 |
| (2) Other changeover | - | 1,982,429.67 | 1,982,429.67 |
| 4. Closing balance | 1,995,851,982.75 | 44,671,964.94 | 2,040,523,947.69 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 6,069,864,161.81 | 168,520,340.15 | 6,238,384,501.96 |
| 2. Opening book value | 6,284,662,399.35 | 177,187,291.01 | 6,461,849,690.36 |
As of the end of this period, the proportion of intangible assets formed through internalresearch and development of the Company in the balance of intangible assets was 1.12%
(2). Land use right for which the ownership certificate has not been obtained
□Applicable √Not applicable
(3) Impairment testing of intangible assets
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposalexpenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected futurecash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and theinformation used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company'sprevious year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary HaichengYiwu China Commodities City Investment Development Co., Ltd. and the Group's branchInternational Production Materials Market Branch of Zhejiang China Commodities City GroupCo., Ltd., impairment tests were conducted on the Haicheng main market and Yixi ProductionMaterials Market belonging to the market segment, as well as Haicheng Market Hotel belongingto the hotel segment. Please refer to Note VII. 21.
27. Goodwill
(1). Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
| The name of the invested unit or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Formed by a business combination | Disposal | |||
| Xunchi Group | 284,916,367.87 | - | - | 284,916,367.87 |
| Total | 284,916,367.87 | - | - | 284,916,367.87 |
(2). Provision for goodwill impairment
□Applicable √Not applicable
(3). Information on the assets group or combination of assets groups to which the
goodwill belongs
√Applicable □Not applicable
| Name | The composition of the asset group or combination to which it belongs and basis | Operating segment to which it belongs and basis | Whether it was consistent with the previous year |
| Kuaijietong asset | It is composed of Kuaijietong Payment Services Co., Ltd., a subsidiary of Zhejiang Xunchi Digital | For internal management | Yes |
| group | Technology Co., Ltd. Since the synergistic effect of the acquisition of Xunchi Group is reflected in the Kuaijietong's subsidiaries, the main cash flow generated by the Kuaijietong's subsidiaries is independent of other subsidiaries of the Group, and the Group manages the production activities of the Kuaijietong's subsidiaries independently, so the goodwill is allocated to the Kuaijietong asset group. | purposes, this asset group combination belongs to other segment. |
Changes in asset groups or asset group combinations
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
In July 2022, the Group acquired 100% equity of Zhejiang Xunchi Digital Technology Co.,Ltd. and Kuaijietong Payment Services Co., Ltd., a wholly-owned subsidiary of Zhejiang XunchiDigital Technology Co., Ltd. (referred to as "Xunchi Group"), resulting in a goodwill of RMB284,916,367.87.
(4). The specific method for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposalexpenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cashflows
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Recoverable amount | Impairment amount | Years of the prediction period | Key parameters for the prediction period (growth rate, profit margin, etc.) | Basis for determining parameters for the prediction period | Key parameters for the stable period (growth rate, profit margin, discount rate, etc.) | Basis for determining key parameters for the stable period |
| Kuaijietong asset group | 356,883,873.68 | 379,000,000.00 | - | 5 | Revenue growth rate, profit margin, discount rate | Historical annual income analysis, gross profit analysis, CPI index | Perpetual growth rate, discount rate | Historical annual income analysis, gross profit analysis, CPI index |
| Total | 356,883,873.68 | 379,000,000.00 | - | / | / | / | / | / |
Reasons for significant discrepancies between the aforementioned information and theinformation used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previousyear’s impairment testing and the actual situation of that year
□Applicable √Not applicable
(5). Performance commitments and corresponding impairment of goodwillWhen goodwill is formed, there is a performance commitment and the reporting period or theprevious period in the reporting period is within the performance commitment period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
28. Long-term prepaid expenses
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Amortized amount in the current period | Closing balance |
| Decoration of buildings and structures | 296,452,554.64 | 87,177,423.42 | 74,753,356.48 | 308,876,621.58 |
| Advertising facilities | 10,473,416.25 | 24,012,035.34 | 13,330,022.53 | 21,155,429.06 |
| Total | 306,925,970.89 | 111,189,458.76 | 88,083,379.01 | 330,032,050.64 |
Other notes:
No
29. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 18,917,033.18 | 4,729,258.30 | 18,828,747.02 | 4,707,186.78 |
| Unrealized profits of internal transactions | 1,051,115.67 | 262,778.92 | 1,094,793.10 | 273,698.28 |
| Deductible losses | 26,986,391.85 | 6,746,597.98 | 1,039,362.23 | 259,840.56 |
| Recognized but unpaid liabilities | 178,820,383.73 | 44,705,095.94 | 301,006,872.77 | 75,251,718.21 |
| Overspent advertising cost | 15,934,608.52 | 3,983,652.13 | 12,547,314.43 | 3,136,828.61 |
| Lease liabilities | 124,053,478.91 | 31,013,369.72 | 127,816,376.30 | 31,954,094.07 |
| Asset-related government grants | 79,879,800.00 | 19,969,950.00 | 79,879,800.00 | 19,969,950.00 |
| Changes in fair value of other non-current financial assets | 118,020,122.13 | 29,505,030.53 | 122,472,837.68 | 30,618,209.42 |
| Changes in fair value of trading financial assets | 2,276,137.50 | 569,034.38 | 3,854,431.84 | 963,607.96 |
| Change in fair value of other equity instruments investment | - | - | 54,424,627.13 | 13,606,156.78 |
| Total | 565,939,071.49 | 141,484,767.90 | 722,965,162.50 | 180,741,290.67 |
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax Debt | Taxable temporary difference | Deferred income tax Debt | |
| Asset evaluation appreciation for merger of the enterprises not under common control | 22,521,198.48 | 5,630,299.60 | 27,573,081.34 | 6,893,270.33 |
| Change in fair value of other equity instruments investment | 3,271,948.17 | 817,987.04 | - | - |
| Changes in fair value of other non-current financial assets | 310,386,559.36 | 77,596,639.84 | 352,597,807.91 | 88,149,451.98 |
| Right-of-use assets | 104,511,421.24 | 26,127,855.31 | 121,577,957.42 | 30,394,489.36 |
| Total | 440,691,127.25 | 110,172,781.79 | 501,748,846.67 | 125,437,211.67 |
(3). Deferred income tax assets or liabilities presented in net amount after offsetting
√Applicable □Not applicable
Unit: RMB
| Item | Deferred income tax assets and liabilities offset at the end of the period | Closing balance of deferred income tax assets or liabilities after offsetting | Offset amount between deferred income tax assets and liabilities at the beginning of the period | Opening balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 26,127,855.31 | 115,356,912.59 | 30,394,489.36 | 150,346,801.31 |
| Deferred income tax liabilities | 26,127,855.31 | 84,044,926.48 | 30,394,489.36 | 95,042,722.31 |
(4). Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 462,360,964.70 | 465,986,055.60 |
| Deductible losses | 933,593,373.14 | 942,386,751.93 |
| Total | 1,395,954,337.84 | 1,408,372,807.53 |
(5). The deductible loss in unrecognized deferred income tax assets will be due in thefollowing years
√Applicable □Not applicable
Unit: RMB
| Year | Closing amount | Opening amount | Remarks |
| 2023 | - | 145,779,196.21 | |
| 2024 | 160,812,048.37 | 161,634,775.04 | |
| 2025 | 205,661,578.38 | 222,983,125.16 |
| 2026 | 227,475,259.53 | 245,567,218.34 | |
| 2027 | 165,825,700.71 | 166,422,437.18 | |
| 2028 | 173,818,786.15 | - | |
| Total | 933,593,373.14 | 942,386,751.93 | / |
Other notes:
√Applicable □Not applicable
The Group believes that the above temporary differences in fixed asset depreciation, assetimpairment provisions, and deductible losses of some subsidiaries can be offset in theforeseeable future, and it is expected that the Group will have sufficient pre-tax profits to offsetduring the reversal period. Therefore, the Group deemed it necessary to recognize the abovedeferred income tax assets.
30. Other non-current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid land transfer fees | 138,253,316.00 | - | 138,253,316.00 | 138,253,316.00 | - | 138,253,316.00 |
| Total | 138,253,316.00 | - | 138,253,316.00 | 138,253,316.00 | - | 138,253,316.00 |
Other notes:
No
31. Assets with restricted ownership or usage rights
√Applicable □Not applicable
Unit: RMB
| Item | Closing amount | Opening amount | ||||||
| Book balance | Book value | Restriction type | Restriction situation | Book balance | Book value | Restriction type | Restriction situation | |
| Cash and cash equivalents | 12,556,381.42 | 12,556,381.42 | Pledged | [Note 2] | 10,098,029.66 | 10,098,029.66 | Pledged | [Note 2] |
| Inventory | 8,925,585.77 | 8,925,585.77 | Seized | [Note 3] | - | - | / | / |
| Long-term equity investment | 102,918,559.00 | 102,918,559.00 | Frozen | [Note 4] | 102,918,559.00 | 102,918,559.00 | Frozen | [Note 4] |
| Other non-current financial assets | 631,520,588.85 | 631,520,588.85 | Frozen | [Note 4] | 621,447,424.37 | 621,447,424.37 | Frozen | [Note 4] |
| Other current assets | 313,869,496.74 | 313,869,496.74 | Pledged | [Note 5] | 367,484,914.87 | 367,484,914.87 | Pledged | [Note 5] |
| Total | 1,069,790,611.78 | 1,069,790,611.78 | / | / | 1,101,948,927.90 | 1,101,948,927.90 | / | / |
Other notes:
Note 2: As of December 31, 2023, the ownership or use rights of bank deposits with a bookvalue of RMB 3,888,542.08 (December 31, 2022: RMB 2,877,968.69) were restricted as a riskmargin for express payment business. As of December 31, 2023, a bank deposit with a bookvalue of RMB 7,220,000.00 (December 31, 2022: RMB 7,220,000.00) was used as aperformance bond for the civil defense project of the hotel plot of the Yiwu Global Digital FreeTrade Center project. As of December 31, 2023, the bank deposit with a book value of RMB1,447,839.34 (December 31, 2022: none) was used as special funds for S3 Logistics Park andYidongbei Engineering Project, and the ownership or use rights were restricted. As of December31, 2023, a bank deposit with a book value of RMB 0.00 (December 31, 2022: RMB 60.97) wasused as a security deposit to obtain a mortgage loan for commercial housing, and the ownershipor use rights were restricted.Note 3: As of December 31, 2023, inventory with a book value of RMB 8,925,585.77(December 31, 2022: none) was seized by the court due to litigation.Note 4: As of December 31, 2023, long-term equity investments with a book value of RMB102,918,559.00 (December 31, 2022: RMB 102,918,559.00) and other non-current financialassets with a book value of RMB 631,520,588.85 (December 31, 2022: RMB 621,447,424.37)were frozen by the Second Intermediate People's Court of Shanghai.Note 5: As of December 31, 2023, the payment business reserve fund with a book value ofRMB 313,869,496.74 (December 31, 2022: RMB 367,484,914.87) was established by theCompany in accordance with the "Administrative Measures for Payment Services of Non-financial Institutions" and "Measures for the Custody of Customer Reserve Funds of PaymentInstitutions" Bank special deposit account. The scope of funds stored and received by theCompany through the customer reserve account includes: funds received from bank cardacquiring business, third-party payment convenience service business, credit card repaymentbusiness, credit payment settlement business, and other part of the Company's business.
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 1,619,804,888.91 | 1,059,287,361.11 |
| Total | 1,619,804,888.91 | 1,059,287,361.11 |
Note to the classification of short-term borrowings:
No
(2). Overdue short-term borrowings
□Applicable √Not applicable
The important overdue and unpaid short-term loansare as follows:
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned loan was 2.95%-3.75% (December 31, 2022: 2.35% -4.151%).
33. Held-for-trading financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes payable
(1). Presentation of notes payable
□Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Accounts payable for market and auxiliary works projects | 1,158,111,539.96 | 881,114,454.44 |
| Accounts payable for logistics park projects | 180,132,641.98 | 216,635,705.68 |
| Accounts payable for procurement for the hotel project | 29,601,176.89 | 17,465,421.40 |
| Trade payables | 12,022,684.89 | 58,894,383.76 |
| Other | 10,386,805.55 | 17,204,438.87 |
| Total | 1,390,254,849.27 | 1,191,314,404.15 |
(2). Important accounts payable with an aging of over 1 year or overdue
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months afterreceipt of the payment notice or based on the project contracts and progress of projects. Thebalance payments for the projects are made after completion of settlement.
37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advance receipt of merchant payment | 373,307,194.00 | 639,009,194.79 |
| Rental advances | 224,790,926.84 | 236,525,969.44 |
| Other | 4,266,275.80 | 10,458,105.25 |
| Total | 602,364,396.64 | 885,993,269.48 |
(2). Important advances with the age over 1 year
□Applicable √Not applicable
(3). Amount of and reasons for material changes to book value during the reporting period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the fact that prepayments mainly come from prepaid merchant payments andprepaid rent, with relatively small individual amounts, there were no single large prepaymentswith an aging of more than 1 year as of December 31, 2023.
38. Contract liabilities
(1). Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers for use fee of shops | 3,034,398,081.66 | 2,982,431,412.43 |
| Advances from customers for goods | 820,058,121.03 | 653,697,926.33 |
| Advances from customers for advertising fee | 141,534,555.46 | 228,163,127.56 |
| Advances from customers for use fee of networking cables | 16,677,298.52 | 17,747,693.18 |
| Advances from customers for loyalty ofbrands | 9,350,894.14 | 11,119,366.97 |
| Advances from customers for housing purchase | 5,090,581.43 | 31,199,591.78 |
| Other | 39,470,433.49 | 66,678,903.31 |
| Total | 4,066,579,965.73 | 3,991,038,021.56 |
(2). Significant contractual liabilities with an aging of over 1 year
□Applicable √Not applicable
(3). Amount of and reasons for material changes to book value during the reportingperiod
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
39. Payroll payable
(1). Presentation of payroll payable
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Short-term compensation | 179,702,065.74 | 486,402,894.67 | 518,009,339.80 | 148,095,620.61 |
| II. Post employment benefits – defined contribution plan | 3,433,248.77 | 31,953,916.99 | 35,009,527.83 | 377,637.93 |
| III. Severance benefits | - | 1,428,540.80 | 1,428,540.80 | - |
| Total | 183,135,314.51 | 519,785,352.46 | 554,447,408.43 | 148,473,258.54 |
(2). Presentation of short-term compensation
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Salary, bonus, allowance and subsidy | 178,068,953.19 | 391,454,219.31 | 421,716,444.51 | 147,806,727.99 |
| 2. Employee benefits | - | 39,628,080.38 | 39,628,080.38 | - |
| 3. Social security contribution | 1,271,605.09 | 19,271,833.41 | 20,375,796.24 | 167,642.26 |
| In which: contribution to medical insurance scheme | 1,094,163.11 | 18,513,195.27 | 19,527,208.57 | 80,149.81 |
| Contribution to work-related injury insurance scheme | 118,960.20 | 716,616.49 | 777,639.15 | 57,937.54 |
| Contribution to maternity insurance scheme | 58,481.78 | 42,021.65 | 70,948.52 | 29,554.91 |
| 4. Housing provident fund | 63,951.00 | 26,027,789.00 | 26,008,936.00 | 82,804.00 |
| 5. Contribution to trade union fund and employee education fund | 297,556.46 | 10,020,972.57 | 10,280,082.67 | 38,446.36 |
| Total | 179,702,065.74 | 486,402,894.67 | 518,009,339.80 | 148,095,620.61 |
(3). Presentation of defined contribution plan
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Contribution to the basic endowment insurance scheme | 3,232,206.01 | 30,904,130.35 | 33,772,733.76 | 363,602.60 |
| 2. Contribution to the unemployment insurance scheme | 201,042.76 | 1,049,786.64 | 1,236,794.07 | 14,035.33 |
| Total | 3,433,248.77 | 31,953,916.99 | 35,009,527.83 | 377,637.93 |
Other notes:
□Applicable √Not applicable
40. Tax payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 12,041,528.84 | 56,402,798.28 |
| Corporate income tax | 179,050,896.50 | 6,138,842.64 |
| Individual income tax | 1,153,545.22 | 1,275,355.73 |
| Urban maintenance and construction tax | 101,195.78 | 2,521,434.47 |
| Land appreciation tax | - | 66,652.63 |
| Real estate tax | 86,296,272.76 | 84,142,438.27 |
| Land use tax | 67,659,355.62 | 60,454,035.23 |
| Other | 1,882,454.99 | 3,996,867.16 |
| Total | 348,185,249.71 | 214,998,424.41 |
Other notes:
As of December 31, 2023, the main taxes prepaid by the Group were as follows: Unit:
RMB
| Item | Qiantang | Occident Center | Total amount of |
| Impression Real Estate Project | Real Estate Project | prepaid tax | |
| Business tax | 240,013.55 | - | 240,013.55 |
| Urban maintenance and construction tax | - | 731,793.32 | 731,793.32 |
| Land appreciation tax | 247,373.48 | 247,373.48 | |
| Education surcharge and local education surcharge | - | 522,709.51 | 522,709.51 |
| Total | 240,013.55 | 1,501,876.31 | 1,741,889.86 |
41. Other payables
(1). Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 1,862,720,723.00 | 1,325,596,105.43 |
| Total | 1,862,720,723.00 | 1,325,596,105.43 |
Other notes:
□Applicable √Not applicable
(2). Interest payable
Presentation by category
□Applicable √Not applicable
Significant overdue interests payable:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Dividend payable
Presentation by category
□Applicable √Not applicable
(4). Other payables
Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Pending investment refunds | 977,172,602.34 | 429,637,665.00 |
| Withholdings, deposit and margin | 490,913,484.14 | 490,392,164.12 |
| Operating expenses payable | 320,135,730.30 | 284,502,534.04 |
| Restricted stock incentive plan | 74,367,173.75 | 120,092,075.00 |
| Other | 131,732.47 | 971,667.27 |
| Total | 1,862,720,723.00 | 1,325,596,105.43 |
Significant other payables with an aging of over 1 year or overdue
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings within one year | 93,995,355.93 | 345,934.69 |
| Bonds payable due within 1 year | 61,508,191.79 | 61,508,191.79 |
| Lease liabilities due within 1 year | 23,637,246.52 | 24,998,166.53 |
| Total | 179,140,794.24 | 86,852,293.01 |
Other notes:
No
44. Other current liabilities
Other current liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Short-term financing notes payable | 3,025,604,467.02 | 3,012,256,419.90 |
| Payment business transactions | 360,157,213.40 | 397,125,623.54 |
| Tax for items to be charged off | 124,426,245.96 | 59,992,173.80 |
| Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
| Dividend payable to to-be-recognized accounts | 2,653,400.82 | 2,449,697.11 |
| Total | 3,514,924,439.85 | 3,473,907,027.00 |
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
| Bond Name | Face value | Coupon rate (%) | Issuing Date | Bond Term | Issuing Amount | Opening Balance | Current Repayment in the current period | Interest accrued based on face value | Premium/discount amortization | Repayment in the current period | Closing Balance | Whether it was overdue |
| Super Short-term Financing Bond | 100 | 2.09 | September 21, 2022 | 240 days | 1,000,000,000.00 | 1,005,457,214.61 | - | 7,901,917.81 | 383,333.34 | 1,013,742,465.76 | - | No |
| Super Short-term Financing Bond | 100 | 2.30 | October 26, 2022 | 240 days | 1,000,000,000.00 | 1,003,733,756.28 | - | 10,901,369.86 | 480,555.56 | 1,015,115,681.70 | - | No |
| Super Short-term Financing Bond | 100 | 3.00 | November 22, 2022 | 120 days | 1,000,000,000.00 | 1,003,065,449.01 | - | 6,575,342.47 | 222,222.22 | 1,009,863,013.70 | - | No |
| Super Short-term Financing Bond | 100 | 2.85 | March 20, 2023 | 179 days | 1,000,000,000.00 | - | 999,502,777.78 | 13,976,712.33 | 497,222.22 | 1,013,976,712.33 | - | No |
| Super Short-term Financing Bond | 100 | 2.57 | May 17, 2023 | 177 days | 1,000,000,000.00 | - | 999,515,068.49 | 12,462,739.73 | 484,931.51 | 1,012,462,739.73 | - | No |
| Super Short-term Financing Bond | 100 | 2.68 | June 20, 2023 | 269 days | 1,000,000,000.00 | - | 999,252,777.78 | 14,317,808.22 | 538,888.89 | - | 1,014,109,474.89 | No |
| Super Short-term Financing Bond | 100 | 2.72 | September 13, 2023 | 210 days | 1,000,000,000.00 | - | 999,424,657.53 | 8,197,260.27 | 216,675.00 | - | 1,007,838,592.80 | No |
| Super Short-term Financing Bond | 100 | 2.78 | November 8, 2023 | 268 days | 1,000,000,000.00 | - | 999,267,759.57 | 4,112,876.71 | 275,763.05 | - | 1,003,656,399.33 | No |
| Total | / | / | / | / | 8,000,000,000.00 | 3,012,256,419.90 | 4,996,963,041.15 | 78,446,027.40 | 3,099,591.79 | 5,065,160,613.22 | 3,025,604,467.02 | / |
Other notes:
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned short-term financing bonds was 2.09% -3.00% (December 31, 2022:
1.75% -3.00%).
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 956,794,218.96 | 404,845,934.69 |
| Long-term borrowings due within one year | -93,995,355.93 | -345,934.69 |
| Total | 862,798,863.03 | 404,500,000.00 |
Notes on the classification of long-term borrowings:
No
Other notes:
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned loans was 2.70%-3.20% (December 31, 2022: 2.70% -2.90%)
46. Bonds payable
(1). Bonds payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Bonds payable | 3,559,960,676.26 | 3,558,925,011.54 |
| Bonds payable due within one year | -61,508,191.79 | -61,508,191.79 |
| Total | 3,498,452,484.47 | 3,497,416,819.75 |
(2). Specific situation of payable bonds: (excluding preferred stocks, perpetual bonds, and other financial instruments classified as financial
liabilities)
√Applicable □Not applicable
Unit: RMB
| Bond Name | Face value | Coupon rate (%) | Issuing Date | Bond Term | Issuing Amount | Opening Balance | Issuing in the current period | Interest accrued based on face value | Premium/discount amortization | Repayment in the current period | Transferred in this year and due within one year | Closing Balance | Whether it was overdue |
| MTN | 100 | 3.29 | Feb 24, 2022 | 3Y | 1,000,000,000.00 | 999,177,980.44 | - | 27,942,465.75 | 365,065.82 | - | 27,942,465.75 | 999,543,046.26 | No |
| MTN | 100 | 3.57 | Mar 29, 2022 | 3Y | 500,000,000.00 | 499,572,104.09 | - | 13,546,438.36 | 182,028.04 | - | 13,546,438.36 | 499,754,132.13 | No |
| MTN | 100 | 3.00 | Jul 20, 2022 | 3Y | 500,000,000.00 | 499,516,212.89 | - | 6,739,726.03 | 183,057.80 | - | 6,739,726.03 | 499,699,270.69 | No |
| Corporate bonds | 100 | 2.88 | Sep 1, 2022 | 3Y | 800,000,000.00 | 799,551,093.23 | - | 7,701,041.10 | 163,021.75 | - | 7,701,041.10 | 699,762,450.85 | No |
| Corporate bonds | 100 | 2.88 | Sep 22, 2022 | 3Y | 700,000,000.00 | 699,599,429.10 | - | 5,578,520.55 | 142,491.31 | - | 5,578,520.55 | 799,693,584.54 | No |
| Total | / | / | / | / | 3,500,000,000.00 | 3,497,416,819.75 | - | 61,508,191.79 | 1,035,664.72 | - | 61,508,191.79 | 3,498,452,484.47 | / |
(3). Description of convertible corporate bonds
□Applicable √Not applicable
Accounting treatment and judgment basis for equity conversion
□Applicable √Not applicable
(4). Notes on other financial instruments classified as financial liabilitiesBasic information of other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
The basis for classifying other financial instruments as financial liabilities:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Undiscounted amount of finance lease payables | 295,896,757.48 | 320,577,235.56 |
| Unrecognized financing charges | -95,427,304.70 | -88,955,333.06 |
| Lease liabilities due within 1 year | -23,637,246.52 | -24,998,166.53 |
| Total | 176,832,206.26 | 206,623,735.97 |
Other notes:
Note: The Group uses the incremental borrowing rate of 2.78%-8.01% as the discount rateto calculate book value to determine the lease liability and measure right-of-use assets.
48. Long-term accounts payable
Presentation of items
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Long-term accounts payable
(1). Long-term payables by nature
□Applicable √Not applicable
Special accounts payable
(1). Special payables by nature
□Applicable √Not applicable
49. Long-term payroll payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Closing balance | Cause of formation |
| Pending L/C losses | 110,620,306.10 | - | |
| Total | 110,620,306.10 | - | / |
Other notes, including the notes on related important assumptions and estimates of importantestimated liabilities:
In 2017, the letters of credit issued by the Group’s subsidiary based on international tradeagency business became overdue successively due to the principals’ failure to make paymentsas agreed. Based on the principle of prudence, the Group recognized estimated liabilities forthe estimated potential losses. On June 30, 2023, the Intermediate People's Court of JinhuaCity, Zhejiang Province made a judgment that the Group was not liable for compensation.
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
| Asset-related government grants | 103,582,129.94 | 58,272,000.00 | 1,421,473.71 | 160,432,656.23 | |
| Total | 103,582,129.94 | 58,272,000.00 | 1,421,473.71 | 160,432,656.23 | / |
Other notes:
√Applicable □Not applicable
In 2023, the Group received an investment reward of RMB 58,272,000.00 from the YiwuFree Trade Development Zone Management Committee for the construction of the YiwuCross-border E-commerce Logistics Park.
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
| Opening balance | Increase or decrease in the current period (+, -) | Closing balance | |||||
| Issued new shares | Bonus shares | Shares converted from provident funds | Other | Sub-total | |||
| Total number of shares | 5,486,074,176.00 | - | - | - | -1,740,000.00 | -1,740,000.00 | 5,484,334,176.00 |
Other notes:
On December 28, 2022, the Company held the 6th Meeting of the 9th Board of Directorsand the 2nd Meeting of the 9th Board of Supervisors, and reviewed and approved the Proposalon the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the ReservedGrant Part of the 2020 Restricted Stock Incentive Plan. There were a total of 338 incentiveobjects whose restricted shares could be unlocked, and the total number of restricted sharesthat could be unlocked was 13.1736 million; On October 19, 2023, the Company held the 13thMeeting of the 9th Board of Directors and the 6th Meeting of the 9th Board of Supervisors, andreviewed and approved the Proposal on the Satisfaction of the Unlocking Conditions for the FirstUnlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. Therewere a total of 29 incentive objects whose restricted shares could be unlocked, and a total of727,700 restricted shares could be released from restrictions and were listed for circulation onNovember 6, 2023.
On August 17, 2023, the 12th Meeting of the 9th Board of Directors and the 5th Meeting ofthe 9th Board of Supervisors of the Group approved the Proposal on Adjusting the RepurchasePrice of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. Accordingto Chapter 14 of the Incentive Plan - the Principle of Cancelling Restricted Stock Repurchases,21 incentive recipients who had been transferred or resigned no longer met the requirements ofthe Company's incentive plan regarding incentive recipients. The Board of Directors of theCompany decided to cancel the qualification of the above-mentioned incentive objects andrepurchase and cancel all 1,740,000.00 restricted shares that had been granted but had not yetbeen unlocked for sale; the repurchase price of shares in the first grant was RMB 2.747 pershare, and the repurchase price of shares in the reserved grant was calculated based on thesum of RMB 2.252 per share plus interest calculated at fixed deposit interest rate published bythe People's Bank of China in the same period. The total amount of funds for this repurchasewas RMB 4.9315 million, all of which was paid with the Company's own funds. The equitycancellation was completed on November 20, 2023.
Through this restricted stock repurchase, the share capital decreased by RMB 1,740,000this year.
54. Other equity instruments
(1). Basic information of other financial instruments such as preferred shares and
perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2). Changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period, the reasons therefor and the basisfor relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserve
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital surplus (share premium) | 1,549,909,197.11 | 30,340,348.50 | 3,334,350.00 | 1,576,915,195.61 |
| Stock incentive | 63,106,263.66 | 16,506,969.91 | 30,340,348.50 | 49,272,885.07 |
| Other | 38,130,573.19 | 2,563,433.73 | - | 40,694,006.92 |
| Total | 1,651,146,033.96 | 49,410,752.14 | 33,674,698.50 | 1,666,882,087.60 |
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group repurchased and cancelled some restricted shares, as detailed in NoteVII. 53. The repurchase resulted in a reduction of RMB 3,334,350.00 in corresponding capitalreserve.
This year, the Group unlocked some restricted shares. Please refer to Note VII. 53 for details.The corresponding capital reserve for the unlocking restricted shares was RMB 30,340,348.50.
The confirmed share-based payment expense for this year was RMB 16,506,969.91, whichwas included in the capital reserve.
This year, other shareholders of Hangzhou Weiyi Technology Co., Ltd., an associatedcompany of the Group, injected capital, resulting in an increase of RMB 2,563,433.73 in capitalreserve.
56. Treasury shares
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Restricted stock incentive plan | 119,483,675.00 | - | 45,116,501.25 | 74,367,173.75 |
| Total | 119,483,675.00 | - | 45,116,501.25 | 74,367,173.75 |
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group unlocked some restricted shares. Please refer to Note VII. 53 for details.The corresponding decrease in treasury shares for the unlocking of restricted shares was RMB45,116,501.25.
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
| Item | Opening Balance | Amount in the current period | Closing Balance | ||
| Amount before tax incurred in the current period | Less: income tax | Amount after tax attributable to parent company | |||
| I. Other comprehensive income that cannot be reclassified into profit or loss | -40,818,470.36 | 57,696,575.32 | 14,424,143.83 | 43,272,431.49 | 2,453,961.13 |
| Change in fair value of other equity instruments investment | -40,818,470.36 | 57,696,575.32 | 14,424,143.83 | 43,272,431.49 | 2,453,961.13 |
| II. Other comprehensive income to be reclassified into profit or loss | 16,809,996.76 | 4,130,739.43 | - | 4,130,739.43 | 20,940,736.19 |
| Other comprehensive income that can be transferred into profit and loss under equity method | 4,060,531.46 | 885,012.68 | - | 885,012.68 | 4,945,544.14 |
| Difference arising from the translation of foreign currency financial statements | 12,749,465.30 | 3,245,726.75 | - | 3,245,726.75 | 15,995,192.05 |
| Total other comprehensive income | -24,008,473.60 | 61,827,314.75 | 14,424,143.83 | 47,403,170.92 | 23,394,697.32 |
Other notes, including those on the adjustment of the initially recognized amount of hedgeditems converted from the effective part of gains or losses from cash flow hedging:
No
58. Special reserve
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserve | 1,564,198,440.14 | 263,568,294.29 | - | 1,827,766,734.43 |
| Discretionary surplus reserve | 40,195,855.68 | - | - | 40,195,855.68 |
| Other | 11,688,840.91 | - | - | 11,688,840.91 |
| Total | 1,616,083,136.73 | 263,568,294.29 | - | 1,879,651,431.02 |
Notes on surplus reserves, including those on the changes in the current period and thereasons therefor:
According to the “Company Law” and the Company’s articles of association, the Companyaccrued a statutory surplus reserve in terms of 10% of its net profit. If the amount of statutorysurplus reserve accrued reaches more than 50% of the Company's registered capital, the accrualmay cease.The Company can accrue free surplus reserve after accruing the statutory surplus reserve.With the approval, the free surplus reserve can be used to make up for previous losses or toincrease share capital.
60. Undistributed profits
√Applicable □Not applicable
Unit: RMB
| Item | Current period | Previous period |
| Undistributed profits at the end of the previous reporting period before adjustment | 6,651,440,591.35 | 6,059,496,846.85 |
| Opening undistributed profits after adjustment | 6,651,440,591.35 | 6,059,496,846.85 |
| Plus: net profits attributable to shareholders of the parent company in the current period | 2,676,182,133.26 | 1,104,719,091.71 |
| Less: withdrawal of statutory surplus reserve | 263,568,294.29 | 110,873,341.23 |
| General risk reserve | 3,854,655.84 | 1,038,991.13 |
| Common share dividend payable | 356,594,821.44 | 400,863,014.85 |
| Closing undistributed profits | 8,703,604,953.04 | 6,651,440,591.35 |
Details of the adjustment of opening undistributed profits:
1. Due to the retrospective adjustment of the Enterprise Accounting Standards and related newregulations, the affected undistributed profit at the beginning of the period was 0.
2. Due to changes in accounting policies, the affected undistributed profit at the beginning ofthe period was 0.
3. Due to significant accounting error correction, the affected undistributed profit at thebeginning of the period was 0.
4. Due to changes in the scope of consolidation caused by the same control, the affectedundistributed profit at the beginning of the period was 0.
5. The opening undistributed profits affected by other adjustments together amounted toRMB0.
61. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main business | 10,934,994,717.64 | 8,162,868,195.76 | 7,326,780,315.71 | 6,335,697,349.64 |
| Other businesses | 364,691,948.25 | 142,873,583.64 | 292,913,426.89 | 117,212,480.32 |
| Total | 11,299,686,665.89 | 8,305,741,779.40 | 7,619,693,742.60 | 6,452,909,829.96 |
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total | |
| Operating revenue | Operating cost | |
| Types of goods | ||
| Seles of goods | 6,808,056,513.21 | 6,757,830,498.54 |
| The use of shops in the China Commodities City markets and the supporting services for operation | 3,031,842,382.25 | 704,097,568.67 |
| Lease | 373,627,518.33 | 214,422,193.06 |
| Hotel accommodation and catering services | 336,598,318.68 | 281,897,490.22 |
| Usage fee | 18,907,795.24 | - |
| Other services | 730,654,138.18 | 347,494,028.92 |
| Classified by business area | ||
| Chinese Mainland | 11,256,474,935.89 | 8,274,792,382.65 |
| Overseas | 43,211,730.00 | 30,949,396.75 |
| Classification by time of good transfer | ||
| Transfer at a certain point in time | 7,128,957,734.62 | 6,896,162,715.99 |
| Transfer within a certain period of time | 4,170,728,931.27 | 1,409,579,063.41 |
| Total | 11,299,686,665.89 | 8,305,741,779.40 |
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
Unit: RMB
| Type of contract | Current period |
| Sales of goods | 603,726,924.61 |
| The use of shops in the China Commodities City markets and the supporting services for operation | 3,031,842,382.25 |
| Hotel accommodation service | 8,997,757.36 |
| Other services | 334,919,223.10 |
| Total | 3,979,486,287.32 |
(3). Contract performance obligations
√Applicable □Not applicable
Unit: RMB
| Item | Time for fulfilling performance obligations | Important payment terms | Nature of the goods that the Company promises to transfer | Whether the Company is the main responsible person | The expected refunds to customers borne by the Company | The types of quality assurance provided by the Company and related obligations |
| Sales of goods | When delivering goods | Advance payment or right to receive payment after delivery of goods | Trade retail goods | Yes | - | No |
| The use of shops in the China Commodities City markets | When providing services | Part of the deposit will be collected in advance, and the remaining amount will be collected | Shop use right / supporting services for operation | Yes | - | No |
| and the supporting services for operation | upon completion of the performance | |||||
| Hotel accommodation business | When providing services | Collection upon completion of performance | Hotel accommodation service | Yes | - | No |
| Hotel catering business | Upon completion of the service | Collection upon completion of performance | Catering services | Yes | - | No |
| Fixed -time paid funding services | When providing services | Regular collection | Fund sources | Yes | - | No |
| Total | / | / | / | / | / |
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
In the year 2023, there was no revenue recognized in this period for performanceobligations already fulfilled (or partially fulfilled) in the previous period.
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Real estate tax | 112,941,296.37 | 118,168,544.44 |
| Land use tax | 15,339,027.73 | 60,280,050.01 |
| Stamp duty | 6,934,464.49 | 6,790,568.05 |
| Urban maintenance and construction tax | 5,991,837.64 | 6,479,070.41 |
| Education surcharge | 2,570,032.07 | 2,800,755.18 |
| Local education surcharge | 1,713,355.49 | 1,867,176.45 |
| Cultural undertaking development fee | 625,040.28 | 470,626.83 |
| Land appreciation tax | 78,890.36 | 2,035,123.43 |
| Travel tax | 2,880.00 | 2,040.00 |
| Consumption tax | 56.64 | - |
| Business tax | - | 13,549.21 |
| Total | 146,196,881.07 | 198,907,504.01 |
Other notes:
No
63. Sales expenses
√Applicable □Not applicable
6. Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Marketing expenses | 147,857,976.01 | 89,853,590.72 |
| Security and insurance expenses | 47,339,389.32 | 33,844,271.39 |
| Advertising expenses | 26,938,539.96 | 31,743,030.06 |
| Water, electricity and fuel expenses | 7,168,737.31 | 6,953,269.50 |
| Depreciation and amortization | 1,150,159.95 | 17,375,946.53 |
| Other | 9,849,218.46 | 17,909,872.89 |
| Total | 240,304,021.01 | 197,679,981.09 |
Other notes:
No
64. Administrative expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Employee and uniform expenses | 340,116,581.08 | 317,219,351.11 |
| Depreciation and amortization | 139,058,190.70 | 96,689,173.47 |
| Intermediary expenses | 19,596,664.75 | 19,137,790.40 |
| Office expenses | 17,489,523.41 | 14,118,875.61 |
| Travel expenses | 7,492,084.48 | 2,365,796.11 |
| Branch establishment expenses | - | 40,895,776.63 |
| Other | 35,778,586.33 | 39,039,507.38 |
| Total | 559,531,630.75 | 529,466,270.71 |
Other notes:
No
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Labor cost | 16,183,479.36 | 8,829,647.10 |
| Technology development fee | 5,154,049.92 | 4,449,479.90 |
| Depreciation and amortization | 165,003.33 | 3,981,240.06 |
| Other | 246,454.69 | 116,794.82 |
| Total | 21,748,987.30 | 17,377,161.88 |
Other notes:
No
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Interest expenses | 269,457,747.37 | 280,924,664.39 |
| Amortization of discount on short-term financing bonds, medium-term notes, and corporate bonds | 4,135,256.51 | 4,370,938.50 |
| Less: interest income | 67,433,620.70 | 132,216,250.44 |
| Less:capitalized amount of interest | 78,823,138.80 | 1,860,833.33 |
| Foreign exchange gains or losses | -4,963,053.99 | -17,091,915.89 |
| Other | 2,638,768.94 | 15,022,286.57 |
| Total | 125,011,959.33 | 149,148,889.80 |
Other notes:
The capitalized amount of borrowing costs has been included in the construction inprogress.
67. Other income
√Applicable □Not applicable
Unit: RMB
| Classified by nature | Amount in the current period | Amount in the previous period |
| Government subsidies related to daily activities | 32,220,817.34 | 38,802,684.45 |
| Total | 32,220,817.34 | 38,802,684.45 |
Other notes:
No
68. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Income from long-term equity investment calculated with the equity method | 1,035,858,139.92 | 996,108,417.69 |
| Investment income from held-for-trading financial assets during holding period | 273,136.58 | 448,207.50 |
| Dividend income from other equity instruments investment during holding period | 3,762,820.14 | 12,542,733.80 |
| Interest income from debt investment during holding period | 2,525,847.12 | 79,561.64 |
| Investment income from disposal of held-for-trading financial assets | 1,763,697.53 | 1,841,491.90 |
| Income acquired from other non-current financial assets during the holding period | 13,835,189.60 | 26,916,977.43 |
| Investment income from disposal of other non-current financial assets | -420,758.60 | 2,118,067.24 |
| Investment income from disposal of wealth management products | 1,182,345.06 | 1,469,407.05 |
| Investment income generated from the disposal of subsidiaries | 9,663,095.13 | - |
| Total | 1,068,443,512.48 | 1,041,524,864.25 |
Other notes:
No
69. Income from net exposure hedging
□Applicable √Not applicable
70. Income from changes in fair value
√Applicable □Not applicable
Unit: RMB
| Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
| Held-for-trading financial assets | 823,330.00 | -3,886,171.10 |
| Other non-current financial assets | -53,253,864.83 | -1,376,305.49 |
| Total | -52,430,534.83 | -5,262,476.59 |
Other notes:
No
71. Loss of impairment of credit
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Bad debt loss of accounts receivable | 2,051,497.83 | -2,024,409.36 |
| Loss for bad debts of other receivables | 85,453.80 | 209,404.41 |
| Total | 2,136,951.63 | -1,815,004.95 |
Other notes:
No
72. Loss of impairment of assets
□Applicable √Not applicable
73. Income from disposal of assets
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Profit and loss on disposal of fixed assets | 158,156,221.58 | -941,780.66 |
| Gains and losses from the disposal of intangible assets | -4,355,964.93 | - |
| Total | 153,800,256.65 | -941,780.66 |
Other notes:
No
74. Revenue from non-operating activities
Information of non-operating incomes
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
| Reversal of estimated liabilities | 110,620,306.10 | - | 110,620,306.10 |
| Incomes from liquidated damages | 5,852,243.61 | 4,025,760.93 | 5,852,243.61 |
| Government grants not related to the daily activities of the Company | 450,000.00 | 239,122.00 | 450,000.00 |
| Other | 2,644,569.60 | 3,234,387.95 | 2,644,569.60 |
| Total | 119,567,119.31 | 7,499,270.88 | 119,567,119.31 |
Other notes:
□Applicable √Not applicable
75. Expenses from non-operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
| Total loss for disposal of non-current assets | 14,686,312.67 | 188,806.68 | 14,686,312.67 |
| Including: loss for disposal of property, plant and equipment | 14,625,133.03 | 188,806.68 | 14,625,133.03 |
| Income from disposal of intangible assets | 61,179.64 | 61,179.64 | |
| External donation | 200,000.00 | 3,393,094.06 | 200,000.00 |
| Other | 1,931,657.80 | 622,929.19 | 1,931,657.80 |
| Total | 16,817,970.47 | 4,204,829.93 | 16,817,970.47 |
Other notes:
No
76. Income tax expenses
(1). Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Current income tax expenses | 517,100,995.28 | 49,512,382.53 |
| Deferred income tax expenses | 9,567,949.07 | -3,306,682.14 |
| Total | 526,668,944.35 | 46,205,700.39 |
(2). Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period |
| Profits before tax | 3,208,071,559.14 |
| Income tax expenses calculated at the statutory/applicable tax rate | 802,017,889.79 |
| Impact of different tax rates applied by subsidiaries | -4,424,663.56 |
| Effect of adjusting income tax of previous period | -21,856,875.52 |
| Effect of non-taxable income | -277,753,023.77 |
| Effect of non-deductible costs, expenses and losses | 112,513.91 |
| Effect of using deductible losses of unrecognized deferred income tax assets in previous period | -18,466,164.71 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 47,039,268.21 |
| Income tax expenses | 526,668,944.35 |
Other notes:
□Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Items of cash flow statement
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Deposit and margin received | 116,180,416.00 | 231,395,229.79 |
| Bank deposit interest income received | 67,433,620.70 | 131,393,012.77 |
| Bank reserve received | 16,787,007.99 | 2,217,933.25 |
| Government grants received | 89,521,343.63 | 64,453,832.77 |
| Received penalty for breach of contract | 5,852,243.61 | 4,025,760.93 |
| Other | 2,000,849.63 | 1,230,207.23 |
| Total | 297,775,481.56 | 434,715,976.74 |
Notes on other cash receipts relating to operating activities:
No
Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Major expenses paid | 314,258,977.01 | 270,289,936.11 |
| Deposit and security paid | 142,111,784.58 | 219,259,625.81 |
| Repair costs and expenses paid | 68,046,525.32 | 62,055,970.52 |
| Other | 252,418.45 | 3,728,976.21 |
| Total | 524,669,705.36 | 555,334,508.65 |
Notes on other cash payments relating to operating activities:
No
(2). Cash related to investment activities
Cash received related to important investment activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Net cash received from disposal of subsidiaries and other business units | 12,482,830.94 | - |
| Total | 12,482,830.94 | - |
Description of cash received related to important investment activitiesNo
Cash paid related to important investment activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Net cash paid by acquiring subsidiaries and other business units | - | 312,616,964.11 |
| Total | - | 312,616,964.11 |
Description of cash paid related to important investment activitiesNo
Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Subsidies to joint ventures and associates | 212,650,200.00 | 900,328,548.00 |
| Investment return received to be confirmed | 587,256,408.09 | 358,879,565.00 |
| Total | 799,906,608.09 | 1,259,208,113.00 |
Notes on other cash receipts relating to investing activities:
No
Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Payment of financial assistance funds | 34,806,218.75 | 41,772,885.00 |
| Total | 34,806,218.75 | 41,772,885.00 |
Other cash paid related to investment activities:
No
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□Applicable √Not applicable
Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Restricted stock cancellation payment paid | 4,931,526.57 | 14,934,064.64 |
| Lease payments paid | 38,068,599.31 | 35,194,742.95 |
| Total | 43,000,125.88 | 50,128,807.59 |
Other cash paid related to financing activities:
No
Changes in liabilities arising from financing activities
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Short-term borrowings | 1,059,287,361.11 | 2,000,000,000.00 | 10,517,527.80 | 1,450,000,000.00 | - | 1,619,804,888.91 |
| Non-current liabilities due within one year | 86,852,293.01 | - | 179,140,794.24 | 86,852,293.01 | - | 179,140,794.24 |
| Other current liabilities | 3,012,256,419.90 | 4,997,945,194.88 | 81,545,619.18 | 5,066,142,766.94 | - | 3,025,604,467.02 |
| Long-term borrowings | 404,500,000.00 | 596,638,863.03 | 855,355.93 | 45,200,000.00 | 93,995,355.93 | 862,798,863.03 |
| Bonds payable | 3,497,416,819.75 | - | 62,543,856.51 | - | 61,508,191.79 | 3,498,452,484.47 |
| Lease liabilities | 206,623,735.97 | - | 8,277,069.60 | 14,431,352.79 | 23,637,246.52 | 176,832,206.26 |
| Total | 8,266,936,629.74 | 7,594,584,057.91 | 342,880,223.26 | 6,662,626,412.74 | 179,140,794.24 | 9,362,633,703.93 |
(4). Description of cash flows reported on a net basis
□Applicable √Not applicable
(5). Significant activities and financial impacts that do not involve current cash inflowsand outflows but affect the financial condition of the enterprise or may affect the cashflow of the enterprise in the future
√Applicable □Not applicable
Unit: RMB
| Item | 2023 | 2022 |
| Income from reversal of expected liabilities for liquidated damages in international trade agency business | 110,620,306.10 | - |
79. Supplements to cash flow statement
(1). Supplements to cash flow statement
√Applicable □Not applicable
Unit: RMB
| Supplements | Amount in the current period | Amount in the previous period |
| 1. Adjust net profits to cash flow from operating activities: | ||
| Net profits | 2,681,402,614.79 | 1,103,601,132.21 |
| Plus: provision for impairment of assets | - | - |
| Loss of impairment of credit | -2,136,951.63 | 1,815,004.95 |
| Depreciation of fixed assets, depletion of oil and gas assets and depreciation of bearer biological assets | 379,513,456.85 | 360,066,867.91 |
| Amortization of right-of-use assets | 37,145,011.30 | 35,119,185.43 |
| Amortization of intangible assets | 229,747,637.69 | 171,380,383.22 |
| Depreciation and amortization of investment real estate | 153,648,676.82 | 129,649,410.69 |
| Amortization of long-term prepaid expenses | 88,083,379.01 | 63,268,555.84 |
| Decrease in expected liabilities | -110,620,306.10 | - |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gains indicated by “-”) | -153,800,256.65 | 564,167.30 |
| Loss from fixed assets retirement (gains indicated by “-”) | 14,686,312.67 | 188,806.68 |
| Loss from changes in fair value (gains indicated by “-”) | 52,430,534.83 | 5,262,476.59 |
| Financial expenses (gains indicated by “-”) | 195,547,220.46 | 300,670,345.73 |
| Investment loss (gains indicated by “-”) | -1,086,606,024.98 | -1,093,839,888.05 |
| Decrease in deferred income tax assets (increase indicated by “－”) | 34,989,888.72 | -1,003,615.63 |
| Increase in deferred income tax liabilities (decrease indicated by “－”) | -25,421,939.66 | -2,303,066.49 |
| Decrease in inventory (increase indicated by “－”) | 83,106,862.96 | -2,892,260.80 |
| Decrease in operating receivables (increase indicated by “－”) | -764,673,004.73 | 210,882,645.92 |
| Increase in operating payables (decrease indicated by “－”) | 21,509,767.66 | 89,496,906.62 |
| Other | 16,506,969.91 | 28,163,655.65 |
| Net cash flow from operating activities | 1,845,059,849.92 | 1,400,090,713.77 |
| 2. Significant investing and financing activities not involving cash receipt and payment: | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 2,910,178,939.19 | 1,981,200,941.64 |
| Less: opening balance of cash | 1,981,200,941.64 | 4,006,468,325.47 |
| Add: closing balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 928,977,997.55 | -2,025,267,383.83 |
(2). Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3). Net cash received from disposal of subsidiaries in the current period
√Applicable □Not applicable
Unit: RMB
| Amount | |
| Cash or cash equivalents received for disposal of subsidiaries in the current period | 23,924,400.00 |
| Bank deposits | 23,924,400.00 |
| Less: Cash and cash equivalents held by the Company on the date of loss of control | 11,441,569.06 |
| Bank deposits | 11,441,569.06 |
| Add: Cash or cash equivalents received in the current period from the disposal of the subsidiary in the previous period | - |
| Net cash received from disposal of subsidiaries | 12,482,830.94 |
Other notes:
On December 19, 2022, the wholly-owned subsidiary of the Company, Yiwu ChinaCommodities City Logistics and Warehousing Co., Ltd. (hereinafter referred to as "Logistics andWarehousing Company"), publicly listed and transferred its 60% equity of Yiwu Huanqiu YidaLogistics Co., Ltd. on the Yiwu Property Rights Exchange.On February 2, 2023, Logistics and Warehousing Company received a public listing transfertransaction notice from the Yiwu Property Rights Exchange, and on February 3, received anequity transfer payment of RMB 23.9244 million after deducting the transaction service fee ofRMB 195,600.On February 21, 2023, Logistics and Warehousing Company signed an equity transferagreement with Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd.,agreeing that Logistics and Warehousing Company would transfer its held equity of YiwuHuanqiu Yida Logistics Co., Ltd., for a registered capital of RMB 30 million (60% of the totalregistered capital), to Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd.and completed the amendment of the articles of association and industrial and commercialregistration of Yiwu Huanqiu Yida Logistics Co., Ltd. on the same day.
(4). Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 2,910,178,939.19 | 1,981,200,941.64 |
| In which: cash on hand | 249,915.87 | 220,471.11 |
| Bank deposit that can be used for payment at any time | 2,909,921,203.08 | 1,980,229,200.48 |
| Other monetary capital that can be used for payment at any time | 7,820.24 | 751,270.05 |
| II. Cash equivalents | ||
| Including: bond investments due within three months | ||
| III. Closing balance of cash and cash equivalents | 2,910,178,939.19 | 1,981,200,941.64 |
| Including:cash and cash equivalents with restricted use by the parent company or its subsidiaries | 12,556,381.42 | 10,098,029.66 |
(5). Situations where the scope of use is limited but still listed as cash and cashequivalents
□Applicable √Not applicable
(6). Monetary funds that do not belong to cash and cash equivalents
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
80. Notes to items in statement of changes in owners’ equity
Names of “others” items whose closing balances in the previous year are adjusted and theamounts of adjustments:
□Applicable √Not applicable
81. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance in foreign currency | Exchange rate | Closing amount after conversation: RMB Balance |
| Cash and cash equivalents | |||
| In which: USD | 13,929,827.95 | 7.0827 | 98,660,792.42 |
| EURO | 50,031.35 | 7.8592 | 393,206.39 |
| Rwandan Franc | 6,283,437.00 | 0.0056 | 35,250.08 |
| Dirham | 37,176.25 | 1.9326 | 71,845.11 |
| Koruna | 2,563,165.56 | 0.3175 | 813,703.35 |
| Accounts receivable | |||
| In which: USD | 30,535.19 | 7.0827 | 216,271.59 |
| EURO | 9,898.57 | 7.8592 | 77,794.84 |
| Koruna | 14,954,701.88 | 0.3175 | 4,747,524.41 |
| Other receivables | |||
| In which: USD | 229,798.71 | 7.0827 | 1,627,595.32 |
| EURO | 68,110.55 | 7.8592 | 535,294.43 |
| Koruna | 18,078,776.74 | 0.3175 | 5,739,294.20 |
| Accounts payable | |||
| In which: USD | 623,635.14 | 7.0827 | 4,417,020.61 |
| Koruna | 206,795.57 | 7.8592 | 65,649.39 |
| Other payables | |||
| In which: USD | 1,545,900.71 | 7.0827 | 10,949,150.96 |
| EURO | 25,492.67 | 7.8592 | 200,351.99 |
| Koruna | 137,630,939.10 | 0.3175 | 43,692,361.62 |
Other notes:
No
(2). Description of overseas operations, for important overseas operations, also includesthe disclosure of principal overseas place of business, bookkeeping currency andthe basis for selection, and the reason for the change in bookkeeping currency.
□Applicable √Not applicable
82. Lease
(1) As a lessee
√Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable √Not applicable
Simplified short-term lease or low-value assets leasing expenses
√Applicable □Not applicable
Simplified short-term lease expenses of RMB 22,693,210.45 included in the current gains.Simplified low-value assets lease expenses of RMB 457,533.27 included in the current gains.
Leaseback transactions and judgment basis
□Applicable √Not applicable
The total cash outflow related to leasing was RMB 38,068,599.31.
(2) As a lessor
Operating lease as lessor
□Applicable √Not applicable
Financing lease as lessor
□Applicable √Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
□Applicable √Not applicable
Undiscounted lease receipts for the next five years
□Applicable √Not applicable
(3) Confirmed gains and losses of financing lease sales as a manufacturer or distributor
□Applicable √Not applicable
Other statementsThe leased assets of the Group include houses, buildings, land use rights, and otherequipment used in the operating process. The lease term for houses and buildings is usually 2-5 years, and the lease term for land use rights is 10 years.
For right-of-use assets, see Note VII. 25; for lease liabilities, please refer to Note VII. 47.
83. Other
□Applicable √Not applicable
VIII. R&D expenditure
(1). Listed by nature of expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Labor cost | 37,912,543.15 | 32,297,207.29 |
| Technology development fee | 9,327,714.50 | 11,980,011.94 |
| Depreciation and amortization | 1,010,603.36 | 4,304,601.41 |
| Other | 407,409.81 | 716,588.19 |
| Total | 48,658,270.82 | 49,298,408.83 |
| Among them: Expensed R&D expenditure | 21,748,987.30 | 17,377,161.88 |
| Capitalized R&D expenditure | 26,909,283.52 | 31,921,246.95 |
Other notes:
No
(2). R&D project development expenditure that meet capitalization criteria
√Applicable □Not applicable
Unit: RMB
| Item | Opening amount Balance | Increase in the current period | Decrease in the current period | Closing amount Balance |
| Internal development expenditure | Recognized as intangible assets | |||
| Kuaijietong Core Payment System | 4,108,355.16 | 4,900,821.08 | 5,346,188.96 | 3,662,987.28 |
| The development project for platform “chinagoods” | 552,640.71 | 22,008,462.44 | 7,575,648.50 | 14,985,454.65 |
| Total | 4,660,995.87 | 26,909,283.52 | 12,921,837.46 | 18,648,441.93 |
Important capitalized research and development projects
□Applicable √Not applicable
Provision for impairment of development expenditure
□Applicable √Not applicable
Other statementsNo
(3). Important outsourced projects under research
□Applicable √Not applicable
IX. Changes in consolidation scope
1. Mergers of enterprises not under common control
□Applicable √Not applicable
2. Mergers of the enterprises under common control
√Applicable □Not applicable
(1). Mergers of enterprises under the same control that occurred in this period
□Applicable √Not applicable
(2). Merger cost
□Applicable √Not applicable
(3). The book value of assets and liabilities of the merged party on the merger date
□Applicable √Not applicable
Other notes:
No
3. Reverse acquisition
□Applicable √Not applicable
4. Disposal of subsidiaries
Whether there were any transactions or events that resulted in the loss of control over a subsidiary in this period
√Applicable □Not applicable
Unit: RMB
| Name of subsidiary | Time of loss of control | Consideration of the disposal at the point of loss of control | Disposal ratio at the point of loss of control (%) | Disposal methods at the point of loss of control | Basis for determining the point of loss of control | Difference between the consideration of the disposal and the share in the subsidiary’s net assets in the consolidated financial statement corresponding to the investment disposed | Remaining shareholding ratio on the date of loss of control (%) | The book value of the remaining equity at the consolidated financial statement level on the date of loss of control | Fair value of remaining equity at the consolidated financial statement level on the date of loss of control | Gains or losses from the remaining shareholding re-calculated by fair value | Method and main assumptions for determining the fair value of remaining equity at the consolidated financial statement level on the date of loss of control | The amount of other comprehensive income related to equity investments in the original subsidiary transferred to investment gains and losses or retained earnings |
| Yiwu Huanqiuyida Logistics Co., Ltd. | January 31, 2023 | 24,120,000.00 | 60 | Equity transfer | Both parties completed the equity transfer procedures | 9,663,095.13 | - | - | - | - | NA | - |
Other notes:
√Applicable □Not applicable
The relevant financial information of Yiwu Huanqiu Yida Logistics Co., Ltd. is as follows:
Unit: RMB
| January 31, 2023 | |
| Current assets | 12,384,901.06 |
| Non-current assets | 10,002,530.76 |
| Current liabilities | 1,313,280.50 |
| Non-current liabilities | - |
| Net assets | 21,074,151.32 |
Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period?
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) and the relatedinformation:
√Applicable □Not applicable
In this period, the Company established a subsidiary, Yiwu Yandoo Shangtu Catering Co., Ltd., and cancelled a subsidiary, Yiwu ChinaCommodities City Commerce and Trade Service Training Center Co., Ltd.
6. Other
□Applicable √Not applicable
X. Equity in Other Entity
1. Equity in subsidiaries
(1). Composition of the enterprise group
√Applicable □Not applicable
Unit: RMB 10,000
| Subsidiary Name | Main place of business | Registered capital | Place of registration | Business | Shareholding ratio (%) | Acquisition Method | |
| Direct | Indirect | ||||||
| Yiwu China Commodities City Import and Export Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Tourism Development Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Zhejiang Yindu Hotel Management Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu Yandoo Shangtu Catering Co., Ltd | Yiwu, Zhejiang | 500.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Research Institute Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu Shangbo Shuzhi Enterprise Management Co., Ltd. | Yiwu, Zhejiang | 30,000.00 | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Big Data Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Software and Information Technology Service Industry | 100 | Establishment | |
| Yiwu Xinlian Technology Service Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Professional technical service industry | 51 | Establishment | |
| Yiwu Commodities City Gonglian Property Co., Ltd. | Yiwu, Zhejiang | 20,000.00 | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. (formerly known as Yiwu Shangbo Real Estate Co., Ltd.) | Yiwu, Zhejiang | 30,000.00 | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu China Commodities City | Yiwu, Zhejiang | 5,000.00 | Yiwu, Zhejiang | IT | 100 | Establishment |
| Information Technology Co., Ltd. | |||||||
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Yiwu, Zhejiang | 400,000.00 | Yiwu, Zhejiang | Financial industry | 100 | Establishment | |
| Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Multimodal transport and transportation agency | 100 | Establishment | |
| Yiwu China Commodities City Exhibition Co., Ltd. | Yiwu, Zhejiang | 3,000.00 | Yiwu, Zhejiang | Business service | 98 | 2 | Establishment |
| Zhejiang Huajie Investment and Development Co., Ltd. | Yiwu, Zhejiang | 50,000.00 | Yiwu, Zhejiang | Business service | 96.4 | Incorporation+acquisition | |
| European Huajie Investment Development Co., Ltd. | Prague, Czech Republic | CZK1,580.00 | Prague, Czech Republic | Business service | 96.4 | Incorporation+acquisition | |
| Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. | Yiwu, Zhejiang | 20,000.00 | Yiwu, Zhejiang | Financial industry | 60 | 40 | Establishment |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | IT | 51 | Establishment | |
| Yiwu Xingchen Enterprise Management Co., Ltd. (former name: Yiwu China Commodity | Yiwu, Zhejiang | 15,000.00 | Yiwu, Zhejiang | IT | 100 | Establishment |
| City Payment Network Technology Co., Ltd.) | |||||||
| Yiwu China Commodities City Advertising Co., Ld. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Advertising | 100 | Establishment | |
| Yiwu International Trade Comprehensive Service Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 60 | Establishment | |
| Yiwu China Commodities City Credit Investigation Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Service | 85 | Establishment | |
| Yiwu Aiximao Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | 500.00 | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu China Commodities City Internet Financial Information Service Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Financial industry | 100 | Incorporation+acquisition | |
| Yiwu China Commodity City RMB and Foreign Currency Exchange Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Financial industry | 100 | Establishment | |
| Hangzhou Shangbo Nanxing Property Co., Ltd. | Hangzhou, Zhejiang | 5,000.00 | Hangzhou, Zhejiang | Real estate | 100 | Establishment | |
| Haicheng Yiwu China Commodities City Investment | Haicheng, Liaoning | 60,000.00 | Haicheng, Liaoning | Real estate | 95 | Establishment |
| Development Co., Ltd. | |||||||
| Ningxia Yiwu China Commodity City Supply Chain Management Co., Ltd. | Shizuishan, Ningxia | 2,000.00 | Shizuishan, Ningxia | Service | 100 | Establishment | |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | Hong Kong, China | HKD 1.00 | Hong Kong, China | Wholesale | 100 | Establishment | |
| Hong Kong Better Silk Road Co., Ltd. | Hong Kong, China | HKD 10800.00 | Hong Kong, China | Service | 100 | Establishment | |
| Huafrica (Kenya) Investment Development Co., Limited | Nairobi, Kenya | KES 3000.00 | Nairobi, Kenya | Service | 100 | Establishment | |
| BETTER SILK ROAD FZE | Dubai, UAE | AED 5040.00 | Dubai, UAE | Service | 100 | Establishment | |
| BETTER SILK ROAD RWANDA Ltd | Kigali, Rwanda | RWF 27000.00 | Kigali, Rwanda | Service | 100 | Establishment | |
| Yiwu Zheqing Trading Co., Ltd. | Yiwu, Zhejiang | 2,200.00 | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
| Yiwu China Commodity City (Germany) Co., Ltd. | Frankfurt, Germany | EUR 100.00 | Frankfurt, Germany | Service | 100 | Establishment | |
| Yiwu China Commodities City (Spain) Co., Ltd. | Madrid, Spain | EUR 20.00 | Madrid, Spain | Service | 100 | Establishment | |
| Zhejiang Xunchi Digital Technology Co., Ltd. | Hangzhou, Zhejiang | 19,000.00 | Hangzhou, Zhejiang | IT | 100 | Acquisition | |
| Kuaijietong Payment | Hangzhou, | 18,000.00 | Hangzhou, | IT | 100 | Acquisition |
| Service Co., Ltd. | Zhejiang | Zhejiang |
Explanation for the difference between the shareholding ratio and voting right ratio in asubsidiary:
No
Basis for holding half or less voting rights in but still controlling an investee, and holding morethan half of the voting rights in but not controlling an investee:
No
Basis for controlling important structured entities included in the consolidation scope:
No
Basis for determining whether a company is an agent or a principal:
No
Other notes:
No
(2). Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
| Name of subsidiary | Minority shareholders’ shareholding ratio | Profits or losses attributable to minority shareholders in the current period | Dividends declared to be distributed to minority shareholders for the current period | Closing balance of minority interest |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 49.00% | 10,163,252.63 | - | 60,894,351.29 |
| Haicheng Company | 5.00% | -5,020,346.01 | - | -52,440,215.21 |
Explanation for the difference between the shareholding ratio and voting right ratio of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB 10,000
| Name of subsidiary | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 12,224.24 | 5,653.21 | 17,877.45 | 5,450.03 | - | 5,450.03 | 9,108.24 | 5,688.44 | 14,796.68 | 4,438.90 | 4.49 | 4,443.39 |
| Haicheng Company | 109,040.55 | 83,210.84 | 192,251.39 | 297,131.82 | - | 297,131.82 | 112,283.93 | 89,899.98 | 202,183.91 | 297,023.65 | - | 297,023.65 |
| Name of subsidiary | Amount in the current period | Amount in the previous period | ||||||
| Operating revenue | Net profits | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profits | Total comprehensive income | Cash flow from operating activities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 6,410.06 | 2,074.13 | 2,074.13 | 1,847.41 | 4,881.33 | 1,206.88 | 1,206.88 | 2,240.52 |
| Haicheng Company | 5,163.04 | -10,045.22 | -10,045.22 | -3,939.04 | 24,288.25 | -8,909.95 | -8,909.95 | -1,114.29 |
Other notes:
No
(4). Significant restrictions on the use of enterprise group’s assets and the settlement ofenterprise group’s debts
□Applicable √Not applicable
(5). Financial or other supports provided to structured entities included in the scope ofconsolidated financial statements
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the Group’s share of owners’ equity in a subsidiarychanges and the Group still controls the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1). Important joint ventures or associates
√Applicable □Not applicable
| Name of joint venture or associate | Main place of business | Place of registration | Business | Shareholding ratio (%) | Accounting treatment method of investment in the joint venture or associate | |
| Direct | Indirect | |||||
| Joint venture | ||||||
| Yiwu Shanglv Investment Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Financial industry | 20 | Equity method | |
| Yiwu Rongshang Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu Chuangcheng Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 24 | Equity method | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Associate | ||||||
| Yiwu Huishang Redbud Equity Investment Co., Ltd. (Note 6) | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Equity method | |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Hangzhou, Zhejiang | Yiwu, Zhejiang | Financial industry | 26 | Equity method | |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) [Note 7] | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 10.41 | Equity method | |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Yiwu, Zhejiang | Yiwu, Zhejiang | Financial industry | 49.98 | Equity method | |
| Pujiang Lvgu Property Co., Ltd. | Pujiang, Zhejiang | Pujiang, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu China Commodities City Property Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Technology promotion and application service industry | 27 | Equity method |
Explanation for the difference between the shareholding ratio and voting right ratio in a jointventure or associate:
No
Bases for holding less than 20% of the voting rights but having significant influence, or holding20% or more of the voting rights but not having significant influence:
Note 6: The Company held 10.42% (2022: 10.42%) of equity of Yiwu Huishang Redbud
Equity Investment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), butregarded it as an associated company of the Company. According to Redbud Investment’sarticles of association, it is engaged in investing and its important financial and operatingdecision-making activities are to pick and manage investment projects, which have been fullyentrusted to the Company’s joint venture Yiwu Huishang Redbud Capital Management Co., Ltd.(“Redbud Capital”). Redbud Capital picks and manages investment projects via its investmentdecision-making committee. Except for special investment matters, which are subject to theresolution of Redbud Investment’s board of directors, other important financial and operatingdecision-making activities are conducted by Redbud Capital on the behalf of Redbud Investment.Therefore, the Company was able to exercise significant influence on Redbud Investment inwhich the Company held 10.42% of total equity.Note 7: The Company held 10.41% (2022: 9.43% ) equity of Yiwu Huishang Redbud PhaseII Investment Partnership (Limited Partnership) (“Redbud Phase II”), but regarded it as anassociated company of the Company. According to Redbud Phase II’s articles of association, it
is engaged in investing and its important financial and operating decision-making activities areto pick and manage investment projects, which have been fully entrusted to the Company’s jointventure Redbud Capital. Redbud Capital picks and manages investment projects via itsinvestment decision-making committee. Except for special investment matters, which are subjectto the resolution of Redbud Phase II’s board of directors, other important financial and operatingdecision-making activities are conducted by Redbud Capital on the behalf of Redbud Phase II.Therefore, the Company could exert significant influence on Redbud Phase II of which theCompany held 10.41% equity.
(2). Main financial information of important joint ventures
□Applicable □Not applicable
Unit: RMB 10,000
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||||
| Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | Guoshen Shangbo | Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | Guoshen Shangbo | |
| Current assets | 5,868.55 | 13,398.19 | 37,987.32 | 237,167.69 | 6,039.08 | 13,547.12 | 47,538.36 | 1,251,563.25 |
| In which: cash and cash equivalents | 4,831.90 | 49.30 | 95.43 | 18,717.68 | 4,316.44 | 198.23 | 540.41 | 88,677.29 |
| Non-current assets | 125,809.14 | - | 1.30 | 43.43 | 129,575.34 | - | 2.12 | 2,979.93 |
| Total assets | 131,677.69 | 13,398.19 | 37,988.62 | 237,211.12 | 135,614.42 | 13,547.12 | 47,540.47 | 1,254,543.18 |
| Current liabilities | 39,666.74 | 0.09 | 25,119.76 | 47,982.62 | 39,891.24 | 148.98 | 34,353.43 | 1,237,514.91 |
| Non-current liabilities | - | - | 1,333.18 | - | 11,566.36 | - | 1,333.17 | 1,571.12 |
| Total liabilities | 39,666.74 | 0.09 | 26,452.94 | 47,982.62 | 51,457.60 | 148.98 | 35,686.60 | 1,239,086.02 |
| Shareholders’ equity attributable to parent company | 92,010.95 | 13,398.10 | 11,535.68 | 189,228.50 | 84,156.82 | 13,398.14 | 11,853.87 | 15,457.16 |
| Share of net assets calculated based on shareholding ratio | 45,085.36 | 6,565.07 | 2,768.56 | 92,721.97 | 41,236.84 | 6,565.09 | 2,844.93 | 7,574.01 |
| Adjustments | -1,492.37 | - | - | - | -1,539.60 | - | - | - |
| --Unrealized profits of internal transactions | -1,492.37 | - | - | - | -1,539.60 | - | - | - |
| Book value of equity investment in joint ventures | 43,592.99 | 6,565.07 | 2,768.56 | 92,721.97 | 39,697.24 | 6,565.09 | 2,844.93 | 7,574.01 |
| Operating revenue | 24,671.44 | - | - | 1,126,150.25 | 17,580.08 | 395,959.62 | 302,152.46 | 56,974.31 |
| Financial expenses | 918.04 | -0.10 | 0.38 | -127.32 | 1,608.93 | -0.94 | -33.92 | -1,139.10 |
| Income tax expenses | 2,644.13 | 0.14 | 285.55 | 56,464.96 | 454.50 | 573.35 | 18,521.80 | 3,912.35 |
| Net profits | 7,854.06 | -0.04 | -318.19 | 173,771.35 | 2,618.68 | 87,577.34 | 56,192.82 | 10,525.21 |
| Total comprehensive income | 7,854.06 | -0.04 | -318.19 | 173,771.35 | 2,618.68 | 87,577.34 | 56,192.82 | 10,525.21 |
| Dividends received from joint ventures this year | - | - | - | - | - | 58,086.56 | 19,447.68 | - |
Other statementsNo
(3). Main financial information of important associates
√Applicable □Not applicable
Unit: RMB 10,000
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||||||
| Chouzhou Financial Lease | Hongyi Fund | CCCP | Pujiang Lvgu | Zhijie Yuangang | Chouzhou Financial Lease | Hongyi Fund | CCCP | Pujiang Lvgu | Zhijie Yuangang | |
| Current assets | 101,696.23 | 15,500.19 | 2,046,024.61 | 127,841.28 | 57,624.29 | 77,387.23 | 25,476.19 | 1,752,170.30 | 121,318.40 | 45,894.85 |
| Non-current assets | 1,917,528.55 | 170,802.46 | 46,906.23 | 6,373.07 | 3,134.11 | 1,605,298.30 | 163,831.11 | 43,109.75 | 777.45 | 137.68 |
| Total assets | 2,019,224.78 | 186,302.65 | 2,092,930.84 | 134,214.36 | 60,758.39 | 1,682,685.53 | 189,307.30 | 1,795,280.05 | 122,095.85 | 46,032.53 |
| Current liabilities | 1,209,345.22 | 2,275.47 | 1,239,064.78 | 59,238.51 | 20,449.28 | 1,132,279.05 | 89.88 | 1,029,256.12 | 45,646.63 | 2,363.50 |
| Non-current liabilities | 588,800.25 | - | 201,027.66 | 4,303.02 | - | 362,250.51 | - | 147,172.22 | - | - |
| Total liabilities | 1,798,145.47 | 2,275.47 | 1,440,092.44 | 63,541.53 | 20,449.28 | 1,494,529.55 | 89.88 | 1,176,428.34 | 45,646.63 | 2,363.50 |
| Shareholders’ equity attributable to parent company | 221,079.31 | 184,027.18 | 652,838.40 | 70,672.83 | 40,309.11 | 188,155.98 | 189,217.42 | 618,851.71 | 76,449.22 | 43,669.03 |
| Share of net assets calculated based on shareholding ratio | 57,480.62 | 91,958.38 | 312,067.18 | 34,629.69 | 10,883.38 | 48,920.55 | 94,570.87 | 303,237.34 | 37,460.12 | 11,790.64 |
| Adjustments | 15.26 | -1,475.01 | 177.26 | 334.48 | 2,314.82 | - | -6.66 | -4,689.27 | 423.84 | 2,765.71 |
| --Unrealized profits of internal transactions | 15.26 | -1,475.01 | 177.26 | 334.48 | 2,314.82 | - | -6.66 | -4,689.27 | 423.84 | 2,765.71 |
| Book value of equity investment in joint ventures | 57,495.88 | 90,483.37 | 312,244.44 | 34,964.17 | 13,198.20 | 48,920.55 | 94,564.21 | 298,548.07 | 37,883.96 | 14,556.34 |
| Operating revenue | 71,405.89 | - | 292,351.52 | 2.75 | 55,854.47 | 56,469.66 | - | 209,890.13 | 9,831.72 | 2,554.69 |
| Net profits | 32,923.33 | 3,055.34 | 28,003.14 | -5,776.39 | -5,030.15 | 24,301.81 | 10,670.77 | 43,105.17 | 2,642.70 | -1,330.97 |
| Total comprehensive income | 32,923.33 | 3,055.34 | 28,003.14 | -5,776.39 | -5,030.15 | 24,301.81 | 10,655.05 | 43,105.17 | 2,642.70 | -1,330.97 |
| Dividend on associates received in the current year | - | - | - | - | - | - | - | - | 8,820.00 | - |
Other statementsNo
(4). Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |
| Joint ventures: | ||
| Total book value of investments | 30,629,677.74 | 31,984,094.03 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -1,354,416.29 | -54,341,295.28 |
| --Other comprehensive income | - | - |
| --Total comprehensive income | -1,354,416.29 | -54,341,295.28 |
| Associates: | ||
| Total book value of investments | 451,803,256.03 | 489,944,751.13 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -39,026,507.78 | 15,004,810.36 |
| --Other comprehensive income | 885,012.68 | 4,139,085.99 |
| --Total comprehensive income | -38,141,495.10 | 19,143,896.35 |
Other statementsNo
(5). Restrictions on the ability of joint ventures or associates to transfer money to the
Company
□Applicable √Not applicable
(6). Excess losses of joint ventures or associates
□Applicable √Not applicable
(7). Unrecognized commitments relating to investment in joint ventures
□Applicable √Not applicable
(8). Contingent liabilities relating to investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the consolidated financialstatementsNotes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
XI. Government grants
1. Government subsidies recognized by accounts receivable at the end of the reportingperiod
√Applicable □Not applicable
Closing balance of accounts receivable 0 (unit: RMB)
Reasons for not receiving the expected amount of government subsidies at the expected timepoint
□Applicable √Not applicable
2. Liabilities items involving government subsidies
√Applicable □Not applicable
Unit: RMB
| Financial statement items | Opening balance | Increase in grant amount in the current period | Amount included in non-operating income in the current period | Transferred to other income in this period | Other changes in this period | Closing balance | Related to assets/income |
| Deferred income | 103,582,129.94 | 58,272,000.00 | - | 1,421,473.71 | - | 160,432,656.23 | Asset-related |
| Total | 103,582,129.94 | 58,272,000.00 | - | 1,421,473.71 | - | 160,432,656.23 | / |
3. Government grants recognized in the profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
| Type | Amount in the current period | Amount in the previous period |
| Asset-related | 1,421,473.71 | 1,421,473.68 |
| Income-related | 30,799,343.66 | 37,381,210.77 |
| Total | 32,220,817.37 | 38,802,684.45 |
Other notes:
No
XII. Risks associated with financial instruments
1. Risk of financial instruments
√Applicable □Not applicable
The risks associated with financial instruments faced by the Group in regular activitiesmainly include credit risk, liquidity risk and market risk. The risk management policies of theGroup for these risks are outlined below.
The Group diversifies its investment and business portfolio appropriately to diversifyfinancial instrument risks, and reduces risks concentrated in any single industry, specific region,or specific counterparty by formulating corresponding risk management policies.
Credit risk
The Group only deals with the recognized third parties with good reputation. According toits policy, the Group needs to carry out credit review on all clients who require to deal with theGroup on credit. In addition, the Group keeps monitoring the balance of accounts receivable toensure it will not face any material bad debt risk. For the transactions settled other than in thefunctional currency of related business entities, unless with specific approval of the Group’scredit control department, the Group will not provide the conditions for dealing on credit.
As the counterparties to the transactions of cash are banks with good reputation and highcredit ratings, the credit risk of those financial instruments is relatively low.
Other financial assets of the Group include accounts receivable, other receivables, othercurrent assets, debt investments, long-term receivables, and other non-current assets. Thecredit risk of these financial assets arises from counterparty defaults, and the maximum riskexposure is equal to the book value of these instruments.
The Group also faces credit risks due to providing financial guarantees, as disclosed in NoteXVI. 2.
Due to the Group only engaging in transactions with recognized and reputable third parties,no collateral is required. Credit risk is centrally managed based on customers/counterparties,geographic regions, and industries. As the clients from which the Group’s accounts receivableare receivable are scattered in different sectors and industries, there’s no material credit riskconcentrated within the Group. The Group does not have any collaterals or other creditenhancements for the balance of its accounts receivable.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of related financialinstruments has increased significantly since the initial recognition thereof. The main criteria forthe Group to judge a significant increase in credit risk are significant changes in one or more ofthe following indicators: the operating environment of the debtor, internal and external creditratings, and significant adverse changes in actual or expected operating results.
Definition of the assets whose credit has been impaired
The main criterion for determining credit impairment in the Group is that if internal orexternal information shows that the contract amount may not be fully recovered beforeconsidering any credit enhancement held.
The credit impairment of financial assets may be caused by multiple events together andmay not necessarily be caused by an individually identifiable event.
Credit risk exposure
Disclose the credit risk exposure of the book balance of financial assets according to thecredit risk level, and disclose the expected credit losses for the next 12 months and the creditlosses for the entire duration of the asset separately.
The Group directly accounts for accounts receivable using simplified methods and providesimpairment provisions for expected credit losses of other accounts receivable in the next 12months using general methods. The quantitative data of the Group's credit risk exposure arisingfrom accounts receivable and other accounts receivable are detailed in Note VII. 5 and Note VII.9.
Liquidity risk
The Group's goal is to use various financing methods to maintain a balance between thesustainability and flexibility of financing. The Group finances its operations through fundsgenerated from operations and borrowings.
The following table summarizes the analysis on the due day of financial liabilities based on
non-discounted contractual cash flows:
December 31, 2023
| Item | Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total |
| Short-term borrowings | 1,633,387,388.91 | - | - | - | 1,633,387,388.91 |
| Accounts payable | 1,390,254,849.27 | - | - | - | 1,390,254,849.27 |
| Other payables | 1,393,726,397.83 | - | - | 468,994,325.17 | 1,862,720,723.00 |
| Other current liabilities | 3,420,706,329.61 | - | - | - | 3,420,706,329.61 |
| Non-current liabilities due within one year | 193,144,703.38 | - | - | - | 193,144,703.38 |
| Long-term borrowings | 20,441,113.41 | 48,482,098.41 | 55,102,649.41 | 798,322,481.14 | 922,348,342.37 |
| Lease liabilities | - | 32,905,926.59 | 32,828,436.37 | 194,173,777.30 | 259,908,140.26 |
| Bonds payable | - | 3,608,950,000.00 | - | - | 3,608,950,000.00 |
| Total | 8,051,660,782.41 | 3,690,338,025.00 | 87,931,085.78 | 1,461,490,583.61 | 13,291,420,476.80 |
2022
| Item | Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total |
| Short-term borrowings | 1,066,763,333.33 | - | - | - | 1,066,763,333.33 |
| Accounts payable | 1,191,314,404.15 | - | - | - | 1,191,314,404.15 |
| Other payables | 835,667,583.73 | - | - | 489,928,521.70 | 1,325,596,105.43 |
| Other current liabilities | 3,440,379,594.46 | - | - | - | 3,440,379,594.46 |
| Non-current liabilities due within one year | 146,035,730.32 | - | - | - | 146,035,730.32 |
| Long-term borrowings | 11,321,500.00 | 62,268,500.00 | 160,416,125.00 | 268,150,000.00 | 502,156,125.00 |
| Lease liabilities | - | 35,662,549.03 | 32,085,308.05 | 225,253,417.58 | 293,001,274.66 |
| Bonds payable | - | 108,950,000.00 | 3,608,950,000.00 | - | 3,717,900,000.00 |
| Total | 6,691,482,145.99 | 206,881,049.03 | 3,801,451,433.05 | 983,331,939.28 | 11,683,146,567.35 |
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to theGroup's long-term liabilities at floating interest rates. The Group manages interest rate riskby closely monitoring changes in interest rates and regularly reviewing borrowings.
As of December 31, 2023, the Group had a long-term loan of RMB 763 million in itslong-term liabilities. The interest rate is adjusted based on the benchmark loan interest rate
on that day at the end of each year, and will not be adjusted in the middle of the year.Therefore, the management believes that the risk of changes in market interest rates isrelatively low.
Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales orpurchases made by certain business units in currencies other than their bookkeepingcurrency. Considering the Group’s short time of inventory and timely collection of accountsreceivable, the management believe that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investmentsThe price risk of equity instrument investments refers to the risk of the fair value of equitysecurities decreasing due to the changes in stock indices and value of individual securities.As of December 31, 2023, the Group was exposed to equity instrument investment pricerisk arising from individual equity instrument investments classified as measured at fair valuethrough profit or loss (Note VII. 2) and classified as measured at fair value through othercomprehensive income (Note VII. 18). The Group manages risks by holding investmentportfolios with different risks.
The following table illustrates the sensitivity of the Group's net profit and loss and othercomprehensive income net after tax to every 10% change in the fair value of equityinstrument investments based on the book value at the balance sheet date, assuming thatall other variables remain constant.
2023
| Equity instrument investment book value | Net profit or loss | Other comprehensive income net after tax | Total shareholders' equity | |
| Equity instrument investment | increase/(decrease) | increase/(decrease) | increase/(decrease) | |
| Fair value increase/decrease by10% | ||||
| Investment in the equity instruments that are measured by fair value and of which the changes in fair value are recognized in other comprehensive income | 556,897,379.17 | - | 41,767,303.44 | 41,767,303.44 |
| Equity instrument investments measured at fair value through profit or loss | 15,130,895.00 | 1,134,817.13 | - | 1,134,817.13 |
2022
| Equity instrument investment book value | Net profit or loss | Other comprehensive income net after tax | Total shareholders' equity | |
| Equity instrument investment | increase/(decrease) | increase/(decrease) | increase/(decrease) | |
| Fair value increase/decrease |
| by10% | ||||
| Investment in the equity instruments that are measured by fair value and of which the changes in fair value are recognized in other comprehensive income | 499,200,803.85 | - | 37,440,060.29 | 37,440,060.29 |
| Equity instrument investments measured at fair value through profit or loss | 23,651,565.00 | 1,773,867.38 | - | 1,773,867.38 |
The Group manages and adjusts its capital structure based on the changes in theeconomic situation and the risk characteristics of related assets. To maintain or adjust thecapital structure, the Group may adjust the distribution of profits to shareholders, return capitalcontribution to shareholders or issue new shares. The Group is not subject to externalmandatory capital requirements. There were no changes in capital management goals,policies, or procedures from 2022 to 2023.
Capital management
The main objective of the Group in capital management is to ensure the Group’s ability tocontinue operations and maintain a healthy capital ratio to support its business developmentand maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in theeconomic situation and the risk characteristics of related assets. To maintain or adjust thecapital structure, the Group may adjust the distribution of profits to shareholders, return capitalcontribution to shareholders or issue new shares. The Group is not subject to externalmandatory capital requirements. There were no changes in the capital management goals,policies, or procedures f from 2022 to 2023.
The Group adopts an asset-liability ratio to manage capital, which refers to the ratio oftotal liabilities to total assets. The Group's policy will maintain a relatively stable asset-liabilityratio. Total liabilities include current liabilities and non-current liabilities. The asset-liability ratioof the Group on the balance sheet date is as follows:
| 2023 | 2022 | ||
| Total liabilities | 18,515,009,702.36 | 16,829,907,934.73 | |
| Total assets | 36,218,947,223.63 | 32,111,004,317.38 | |
| Asset-liability ratio | 51.12% | 52.41% |
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(3) The Company conducts hedging business for risk management and expects toachieve risk management goals, but has not applied hedging accounting
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
3. Financial asset transfer
(1) Classification of transfer methods
□Applicable √Not applicable
(2) Financial assets derecognized due to transfer
□Applicable √Not applicable
(3) Transferred financial assets in which the Group continued to be involved
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
XIII. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
| Item | Closing fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Continuous fair value measurement | ||||
| (1) Held-for-trading financial assets | 15,130,895.00 | - | - | 15,130,895.00 |
| 1. Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 15,130,895.00 | - | - | 15,130,895.00 |
| (2) Investment in equity instruments | 15,130,895.00 | - | - | 15,130,895.00 |
| (3) Other equity instruments investment | 556,897,379.17 | - | - | 556,897,379.17 |
| (vi) Other non-current financial assets | - | - | 1,421,569,904.19 | 1,421,569,904.19 |
| Total assets continuously measured by fair value | 572,028,274.17 | - | 1,421,569,904.19 | 1,993,598,178.36 |
2. Basis for determining the market prices of the items continuously and non-
continuously measured by Level 1 fair value
√Applicable □Not applicable
The Group's continuous first level fair value measurement project is equity instruments ofthe listed company, and fair value is determined based on market quotations.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 2
fair value
□Applicable √Not applicable
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 3
fair value
√Applicable □Not applicable
The financial department of the Group is led by the general manager of the financialdepartment of the group, who is responsible for formulating policies and procedures for themeasurement of fair value of financial instruments. The general manager of the financialdepartment of the Group reports directly to the Financial Director of the group, and theFinancial Director reports to the audit committee. On each balance sheet date, the financialdepartment analyzes the changes in the value of financial instruments and determines themain input values applicable to the valuation. The valuation shall be reviewed and approved bythe Group's Financial Director. For the purpose of annual financial statements, the valuationprocess and results are discussed twice a year with the audit committee.
Non-listed equity instrument investments are estimated at fair value using the marketmethod based on unobservable market prices or interest rate assumptions, or fair value isdetermined using the asset-based method for non-listed equity instruments as of the balancesheet date. The Group needs to determine comparable listed companies based on industry,scale, leverage, and strategy, and calculate appropriate market multipliers, such as price toearnings ratios, for each identified comparable listed company. Adjust based on specific facts
and circumstances of the enterprise, taking into account factors such as liquidity and sizedifferences with comparable listed companies. The Group believes that the fair value and itschanges estimated using valuation techniques are reasonable and the most appropriate valueon the balance sheet date. For the fair value of non-listed equity instrument investments, theGroup estimates the potential impact of using other reasonable and possible assumptions asinputs to the valuation model.
5. Adjustment information between the opening book value and closing book value, andthe sensitivity analysis of unobservable parameters for items continuously measuredby Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value, if there is conversion between
different levels in the current period, the reasons for the conversion and the policyfor determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured by fair value
□Applicable √Not applicable
9. Other
□Applicable √Not applicable
XIV. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB 10,000
| Name of parent company | Place of registration | Business | Registered capital | Shareholding ratio in the Company (%) | Voting right ratio in the Company (%) |
| Yiwu China Commodities City Holdings Limited | Yiwu, Zhejiang | Asset management | 100,000 | 55.40 | 55.40 |
Notes on the parent company of the CompanyNoThe ultimate controlling party of this enterprise is the State-owned Assets Supervision andAdministration Office of Yiwu Municipal People's Government.Other notes:
No
2. Subsidiaries of the Company
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
Please refer to Note VI. 1. Equity in Subsidiaries
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
Please refer to Note X. 3 Equity in Joint Ventures or AssociatesOther joint ventures or associates that have related-party transactions with the Company in thecurrent period or had related-party transactions with the Company in the previous year whichresulted in an outstanding amount are as follows
√Applicable □Not applicable
| Name of joint venture or associate | Relationship with the Company |
| Yiwu Shanglv | Joint venture |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Joint venture |
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Joint venture |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Joint venture |
| Yiwu Rongshang Property Co., Ltd. | Joint venture |
| Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Associate |
| Huishang Micro-finance | Associate |
| Zhejiang Yemai Data Technology Co., Ltd. | Associate |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Associate |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | Associate |
| Yiwu Digital Port Technology Co., Ltd. | Associate |
| CCCP | Associate |
| Hangzhou MicroAnts Co., Ltd. | Associate |
| Yiwu Huishang Redbud Equity Investment Co., Ltd. | Associate |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | Associate |
| Yiwu Heimahui Enterprise Service Co., Ltd. | Associate |
| Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | Associate |
Other statements
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
| Name of other related party | Relationship with the Company |
| Yiwu State-owned Capital Operation Co., Ltd. | Parent company of controlling shareholder of the Company’s largest shareholder |
| Yiwu Market Development Group Co., Ltd. | Controlling shareholder of the Company’s largest shareholder |
| Yiwu Security Service Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Yiwu Agriculture Development Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | Branch of Controlling shareholder of the Company’s largest shareholder |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yiwu Gongchen Shangbo Property Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yiwu China Commodities City Property Service Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yiwu Comprehensive Bonded Zone Enterprise Management Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yisha Chengdu International Trade City Co., Ltd. | Minority shareholder of major subsidiaries |
| Zhejiang Yiwu Rural Economic Development Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
Other statementsNo
5. Related-party transactions
(1). Related-party transactions of purchasing and selling goods and rendering andaccepting servicePurchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in the previous period |
| Yiwu China Commodities City Property Service Co., Ltd. | Property service fee and greening maintenance fee | 181,414,943.66 | NA | NA | 184,739,755.70 |
| Yiwu Security Service Co., Ltd. | Exhibition security service fee | 17,321,354.13 | NA | NA | 28,188,230.28 |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Construction fee | 11,048,288.61 | NA | NA | 1,100,800.00 |
| Zhejiang Yemai Data Technology Co., Ltd. | Purchase payment and platform service fee | 2,793,096.42 | NA | NA | 2,291,695.43 |
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Design fee | 2,440,943.96 | NA | NA | 3,472,843.99 |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | Service fees | 2,000,000.00 | NA | NA | - |
| Hangzhou MicroAnts Co., Ltd. | Information service fee | 244,523.00 | NA | NA | - |
| Yiwu Digital Port Technology Co., Ltd. | Technical service fee and hardware equipment fee | - | NA | NA | 4,948,197.00 |
| Yiwu Agriculture Development Co., Ltd. | Purchase payment | - | NA | NA | 2,042,604.35 |
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Amount in the previous period |
| Yiwu China Commodities City Property Service Co., Ltd. | Product sales and system development | 4,153,162.42 | 2,175,245.60 |
| MDG and its branch Xingfuhu International Conference Center | Laundering fees | 2,627,096.60 | 1,054,026.05 |
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | Storage fee income | 2,147,325.34 | - |
Notes on related-party transactions of purchasing and selling goods and rendering andaccepting service
□Applicable √Not applicable
(2). Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
| Name of consignor/employer | Name of consignee/contractor | Type of entrusted/contracted assets | Starting date of entrustment /contracting | Ending date of entrustment /contracting | Pricing of entrustment income/contracting income | Entrustment income/contracting income recognized in the current period |
| Yiwu Market Development Group Co., Ltd. | The Company | Entrustment of other assets | Feb 1, 2020 | Jan 31, 2025 | Negotiated price | 954,484.23 |
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the management contract signed between the Company and Yiwu MarketDevelopment Group Co., Ltd. for the Yourworld International Conference Center, the Companyis entrusted to manage the Yourworld International Conference Center Hotel located at No. 100Xingfuhu Road, Yiwu City. The hotel management fee charged during this reporting period wasRMB 954,484.23 (2022: RMB 514,979.27).
Entrusted management/contracted by the Company
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
| Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
| Yiwu China Commodities City Property Development Co., Ltd. | Office space | 988,924.55 | 1,126,617.29 |
| Yiwu Market Development Service Center Co., Ltd. | Parking lot | 562,755.00 | 516,288.99 |
| Yiwu Shanglv Investment Development Co., Ltd. | Office space | 458,715.60 | 1,376,146.79 |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Office space | 272,279.43 | 246,819.06 |
| Yiwu China Commodities City Property Service Co., Ltd. | Office space | 194,279.41 | 122,445.99 |
| Hangzhou MicroAnts Co., Ltd. | Office space | 162,259.84 | - |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Office space | - | 207,058.99 |
| Huishang Micro-finance | Office space | - | 49,791.48 |
| Total | 2,639,213.83 | 3,645,168.59 |
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
| lessor name | Type of leased asset | Simplified treatment of rental expenses for short-term leases and leases of low-value assets (if applicable) | Variable lease payments not included in the measurement of the lease liability (if applicable) | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | |||||
| Amount in the current period | Amount in the previous period | Amount in the current period | Amount in the previous period | Amount in the current period | Amount in the previous period | Amount in the current period | Amount in the previous period | Amount in the current period | Amount in the previous period | ||
| Yiwu China Commodities City Holdings Limited | Warehouses | 15,025,937.62 | 15,015,618.37 | - | - | 16,378,272.00 | 16,378,272.00 | - | - | - | - |
Notes on related-party lease
√Applicable □Not applicable
The Group rent office spaces from above related parties at market prices
(4). Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
| The guaranteed | Amount of guarantee | Starting date of the guarantee | Expiry date of the guarantee | Is the guarantee fulfilled in full |
| Yiwu Shanglv | 45,754,890.24 | Jul 1, 2015 | Dec 15, 2026 | No |
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of December 31,2023, Yiwu Shanglv actually borrowed RMB 93.3773 million ( December 31, 2022: RMB
193.4681 million ) from banks. According to the guarantee contract, the Group assumedliability for RMB 45.7549 million (December 31, 2022: RMB 94.7993 million). Yiwu State-owned Capital Operation Co., Ltd. provided a counter-guarantee for this guarantee.
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
| Related party | Amount | Starting date | Maturity date | Description of |
| Borrowings | ||||
| Chengzhen Property | 58,803,200.00 | Jan 18, 2022 | In 2022, the Group transferred a total of RMB 58,803,200.00 from Chengzhen Real Estate, according to the shareholding ratio, at the annual interest rate of 0%. As of December 31, 2023, RMB 34,806,218.79 had been transferred back, and the remaining fund repayment date would be determined based on the funding needs of Chengzhen Real Estate projects. | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 230,600,000.00 | Oct 31, 2022 | The Group allocated a total of RMB 230,600,000.00 of surplus funds from Guoshen Shangbo in 2022. The allocations were based on the share holding rate and the annual interest rates were 0%. The Group allocated a total of RMB 489,988,200.00 of surplus funds from Guoshen Shangbo in 2023. The repayment date would be determined according to the funding needs of Guoshen Shangbo projects. | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 294,000,000.00 | Jun 29, 2023 | ||
| Yiwu Guoshen Shangbo Property Co., Ltd. | 98,000,000.00 | Oct 30, 2023 | ||
| Yiwu Guoshen Shangbo Property Co., Ltd. | 97,988,200.00 | Nov 1, 2023 | ||
| Yiwu Rongshang Property Co., Ltd. | 64,418,683.00 | Jun 30, 2022 | The Company received a pre-dividend of RMB 64,418,683.00 from Rongshang Real Estate in 2022, and the specific date of repayment of funds would be determined according to the distribution of dividend resolutions. | |
| Huishang Zijing | 4,500,000.00 | Dec 31, 2021 | The Company received a pre-dividend of RMB 4,500,000.00 from Huishang Redbud in 2021, a pre-dividend of RMB12,000,000.00 from Huishang Redbud in 2022, and a pre-dividend of RMB 2,250,000.00 from Huishang Redbud in 2022. The specific date of return of funds would be determined according to the distribution of dividend resolutions. | |
| Huishang Zijing | 12,000,000.00 | Dec 31, 2022 | ||
| Huishang Zijing | 2,250,000.00 | Dec 29, 2023 | ||
| Related party | Amount | Starting date | Maturity date | Description of |
| Lending to | ||||
| Yiwu Handing Shangbo Real Estate Co., Ltd. | 204,604,400.00 | Dec 11, 2020 | The Group provided financial assistance to Handing Shangbo totaling RMB 204,604,400.00 in 2020, and provided financial assistance to Handing Shangbo totaling RMB 17,845,800.00 in 2021, with an annual interest rate of 6%. Handing Shangbo has repaid all the funds as of December 31, 2023. | |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | 17,845,800.00 | May 11, 2021 | ||
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 63,465,484.42 | Mar 9, 2020 | In 2020, the Group provided JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO financial assistance totaling RMB 63,465,484.42; in 2021, the Group provided it with financial assistance totaling RMB 109,636,517.09; in 2022, the Group provided it with financial assistance totaling RMB 41,772,885.00, all at an annual interest rate of 6-month average EIBOR plus 5%. The repayment term of the financial assistance would be determined based on the progress of the project. | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 109,636,517.09 | Mar 31, 2021 | ||
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 41,772,885.00 | May 12, 2022 |
(6). Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7). Remunerations of key officers
√Applicable □Not applicable
Unit: RMB 10,000
| Item | Amount in the current period | Amount in the previous period |
| Remunerations of key officers | 1,956.51 | 1,775.94 |
(8). Other related-party transactions
√Applicable □Not applicable
Related party entrusted loan
Unit: RMB
| Unit | 2023 | 2022 |
| Yisha Chengdu International Trade City Co., Ltd. | 48,000,000.00 | 48,000,000.00 |
After deliberation and approval at the fifth meeting of the ninth Board of Directors held bythe Group on December 15, 2022, Yiwugou, an indirectly controlled subsidiary of the Group,provided an entrusted loan of RMB 48 million to Yisha Chengdu International Trade City Co.,Ltd., a minority shareholder of Yiwugou, in the form of monetary funds through Yiwu Branch ofAgricultural Bank of China Co., Ltd., with a term of 2 years and an annual interest rate of 5.5%.
6. Unsettled items such as accounts receivable and related parties payable
(1). Receivables
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts receivable | Yiwu China Commodities City Property Service Co., Ltd. | 711,617.24 | 13,307.24 | - | - |
| Accounts receivable | Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | 535,559.20 | 10,205.81 | 168,814.20 | 1,676.53 |
| Accounts receivable | Yiwu Market Development Group Co., Ltd. | 292,500.00 | 5,573.98 | - | |
| Accounts receivable | Yiwu Shanglv Investment Development Co., Ltd. | 7,824.20 | 149.10 | - | - |
| Accounts receivable | Yiwu China Commodities City Property Development Co., Ltd. | 999.00 | 19.04 | - | - |
| Accounts receivable | Yiwu Tonghui Shangbo Real Estate Co., Ltd. | - | - | 6,200,000.00 | 61,573.54 |
| Total | 1,548,499.64 | 29,255.17 | 6,368,814.20 | 63,250.07 | |
| Other receivables | Yiwu Market Development Group Co., Ltd. | 440,168.00 | - | - | - |
| Other receivables | Yiwu China Commodities City Property Service Co., Ltd. | 132,400.00 | - | - | - |
| Other receivables | Yiwu Market Development Service Center Co., Ltd. | 42,393.12 | - | - | - |
| Other receivables | Hangzhou Weiyi | 342.58 | - | 1,288.00 | - |
| Other receivables | Zhejiang Xingfuhu Sports Development Co., Ltd. | 148.30 | - | - | - |
| Other receivables | Handing Shangbo | - | - | 207,750,200.00 | - |
| Other receivables | Tonghui Shangbo | - | - | 116,036,712.09 | - |
| Other receivables | Gongchen Shangbo | - | - | 562,755.00 | - |
| Total | 615,452.00 | - | 324,350,955.09 | - | |
| Long-term receivables | JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND FZCOR MARKET DEVELOPMENT AND OPERATZON FZCO | 238,905,772.12 | - | 233,127,115.20 | - |
| Long-term receivables | Yiwu Shanglv | 31,850,000.00 | - | 36,750,000.00 | - |
| Total | 270,755,772.12 | - | 269,877,115.20 | - | |
(2). Payables
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Yiwu China Commodities City Property Service Co., Ltd. | 5,606,633.72 | 13,728,471.27 |
| Accounts payable | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 3,592,709.55 | - |
| Accounts payable | Yiwu Digital Port Technology Co., Ltd. | 1,692,174.34 | - |
| Accounts payable | Zhejiang Yemai Data Technology | 629,311.13 | 713,020.54 |
| Accounts payable | Yiwu Agriculture Development Co., Ltd. | 402,739.20 | 1,791,720.12 |
| Accounts payable | Yiwu Security Service Co., Ltd. | - | 919,817.45 |
| Total | 11,923,567.94 | 17,153,029.38 | |
| Advance from customers | Yiwu China Commodities City Property Service Co., Ltd. | 932,547.16 | - |
| Advance from customers | Yiwu China Commodities City Property Development Co., Ltd. | 824,103.79 | 583,018.86 |
| Advance from customers | Yiwu Shanglv Investment Development Co., Ltd. | 649,847.09 | - |
| Advance from customers | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 584,230.37 | - |
| Advance from customers | Yiwu Market Development Group Co., Ltd. | 403,301.89 | - |
| Advance from customers | Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | 274,063.34 | - |
| Advance from customers | Yiwu Meipinshu Supply Chain Management Co., Ltd. | 209,100.37 | |
| Advance from customers | Yiwu Digital Port Technology | 156,951.99 | - |
| Advance from customers | Redbud Capital | 90,759.83 | - |
| Total | 4,124,905.83 | 583,018.86 | |
| Contract liabilities | Yiwu China Commodities City Property Service Co., Ltd. | 139,919.81 | 94,027.70 |
| Contract liabilities | Yiwu Digital Port Technology Co., Ltd. | 45,657.30 | 35,519.71 |
| Contract liabilities | Huishang Micro-finance | 11,792.46 | 11,792.46 |
| Contract liabilities | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 4,880.58 | - |
| Contract liabilities | Zhejiang Yiwu Rural Economic Development Co., Ltd. | - | 84,905.66 |
| Contract liabilities | Yiwu Security Service Co., Ltd. | - | 974.76 |
| Total | 202,250.15 | 227,220.29 | |
| Other payables | Yiwu Guoshen Shangbo Property Co., Ltd. | 720,588,200.00 | 230,600,000.00 |
| Other payables | Yiwu Rongshang Property Co., Ltd. | 64,418,683.00 | 64,418,683.00 |
| Other payables | Yiwu Chengzhen Property Co., Ltd. | 23,996,981.25 | 58,803,200.00 |
| Other payables | Yiwu Huishang Redbud Equity Investment Co., Ltd. | 18,750,000.00 | 16,500,000.00 |
| Other payables | Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | 5,000,000.00 | - |
| Other payables | Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | 322,800.00 | 150,000.00 |
| Other payables | Yiwu China Commodities City Property Development Co., Ltd. | 240,000.00 | 240,000.00 |
| Other payables | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 200,000.00 | 200,000.00 |
| Other payables | Yiwu Shanglv Investment Development Co., Ltd. | - | 108,333.33 |
| Other payables | Yiwu Heimahui Enterprise Service Co., Ltd. | 100,000.00 | 100,000.00 |
| Other payables | Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | 96,522.47 | 78,908.97 |
| Other payables | Zhejiang Yemai Data Technology | 70,430.19 | 21,328.50 |
| Other payables | Yiwu Meipinshu Supply Chain Management | 57,000.00 | 57,000.00 |
| Other payables | Hangzhou MicroAnts Co., Ltd. | 26,000.00 | 26,000.00 |
| Other payables | Yiwu Digital Port Technology Co., Ltd. | 25,000.00 | - |
| Other payables | Yiwu China Commodities City Property Service Co., Ltd. | 5,062.00 | - |
| Other payables | Yiwu China Commodities City Trading Co., Ld. | 2,500.00 | 2,500.00 |
| Other payables | Yiwu Security Service Co., Ltd. | - | 14,740.00 |
| Total | 833,899,178.91 | 371,320,693.80 | |
(3). Other projects
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing book balance | Opening book balance |
| Debt investments | Yisha Chengdu International Trade City Co., Ltd. | 48,073,333.34 | 48,079,561.64 |
7. Related-party commitments
□Applicable √Not applicable
8. Other
□Applicable √Not applicable
XV. Share-based payment
1. Various equity instruments
√Applicable □Not applicable
Quantity unit: share Amount unit: RMB
| Grant object category | Grant in this period | Unlocked in this period | Expired in this period | |||
| Qty. | Amount | Qty. | Amount | Qty. | Amount | |
| Management personnel | - | - | 13,711,500.00 | 29,922,651.00 | 1,740,000.00 | 4,193,400.00 |
| R&D personnel | - | - | 189,750.00 | 417,697.50 | - | - |
| Total | - | - | 13,901,250.00 | 30,340,348.50 | 1,740,000.00 | 4,193,400.00 |
Stock options or other equity instruments issued to the public as of the end of the period
√Applicable □Not applicable
| Grant object category | Other equity instruments issued to the public as of the end of the period | |
| The range of exercise price | Remaining term of the contract | |
| Management and R&D personnel | 2.94/2.39 | 60 months from the date of grant |
Other statementsNo
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
| Method for determining the fair value of equity instruments on the grant date | Market price on grant day |
| Important parameters of fair value of equity instruments on grant date | / |
| Basis for determining the number of exercisable equity instruments | Determined based on the number of incentive objects that have reached the assessment target, through annual assessment on the Company’s financial performance indicators and personal performance indicators. |
| Reason for the significant difference between the estimates in the current period and in the previous period | No |
| Cumulative amount of equity-settled share-based payments included in the capital reserve | 79,041,715.15 |
Other statementsNo
3. Share-based payment settled with cash
□Applicable √Not applicable
4. Share-based payment expenses in this period
√Applicable □Not applicable
Unit: RMB
| Grant object category | Equity-settled share-based payment expenses | Cash-settled share-based payment expenses |
| Administrative expenses | 15,837,337.16 | / |
| R&D expenses | 669,632.75 | |
| Total | 16,506,969.91 | / |
Other statementsOn December 10, 2020, the Fifth Extraordinary General Meeting of Shareholders of theCompany approved the Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and itsAbstract, granting stock options to 405 eligible directors, senior management, core technicalpersonnel, and other personnel deemed necessary by the Board of Directors to be incentivized.The price for the restricted stocks in the first grant under this plan was RMB 2.94 per share; Theprice for the restricted stocks in the reserved grant was RMB 2.39 per share.On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants (Special GeneralPartnership) issued the capital verification report (Zhezhihuiyizi [2021] No. 17): The Companyhas received a total of RMB 5,592,600.00 for subscription of restricted shares from 31 restrictedstock incentive objects, including RMB 2,340,000.00 in newly registered capital (share capital),and RMB 3,252,600.00 in capital reserve. The registered capital and share capital of theCompany before the capital increase were both RMB 5,489,914,176.00, and the registeredcapital and share capital after the change were both RMB 5,492,254,176.00. In the registrationprocess of this grant, considering that three of the intended incentive recipients determined onthe reserved grant date had voluntarily given up and no longer qualified as incentive recipients,the actual number of incentive objects subscribed for this time was 31, and the number ofsubscribed shares was 2.34 million . On November 4, 2021, the registration procedures for thereserved grant of restricted stocks involved in this incentive plan were completed, and theShanghai Branch of China Securities Depository and Clearing Corporation Limited issued the"Securities Change Registration Certificate".On July 19, 2022, the 51st Meeting of the 8th Board of Directors and the 14th Meeting ofthe 8th Board of Supervisors of the Company reviewed and approved the Proposal on Adjustingthe Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some RestrictedStocks. According to the provisions of Chapter 14, Principle of Restricted Stock Repurchase andCancellation in the Company's Incentive Plan, the 45 incentive recipients who had beentransferred or resigned no longer met the relevant provisions of the Company's incentive plan.The Board of Directors of the Company decided to cancel the qualification of the above-mentioned incentive objects and repurchase and cancel all 5,200,000.00 restricted shares thathad been granted but had not yet been unlocked for sale. In accordance with the relevantprovisions of the Incentive Plan, the repurchase prices of the restricted stocks in the first andreserved grant would be adjusted. The repurchase price of the restricted stocks in the first grantafter adjustment was RMB 2.812/share, and the repurchase price the restricted stocks in thereserved grant after adjustment was RMB 2.317/share. The total amount of restricted stockrepurchase funds this time was RMB 14.9341 million, and all the above-mentioned repurchasefunds would be paid with the Company's own funds.
5. Modification and termination of share-based payment
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
XVI. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB
| Capital commitments | 2023 | 2022 |
| Signed but not provided | 4,549,081,338.19 | 3,451,663,094.71 |
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City FinancialHoldings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”)jointly established an industry fund Yiwu China Commodities City Fuxing Investment Center(Limited Partnership) (hereinafter referred to as the “FOF”). The FOF as a limited partnerinvested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LimitedPartnership) (“Shangfu Chuangzhi Fund”). CCCF subscribed for capital contribution of RMB 998million in the FOF as a limited partner, accounting for 49.9% of the total capital contribution, andhas paid in RMB 102.92 million. The unpaid portion of its subscribed capital contribution waspromised to be RMB 895.08 million and was not subject to a term. CCCF also made capitalcontribution of RMB 9.8 million (49% equity) to Yiwu China Commodities City Investment andManagement Co., Ltd. (hereinafter referred to as the “CCCIM”), which was a general partner ofthe above FOF and sub-funds. Fuxing made capital contribution of 51% to and had control overCCCIM.
Shangfu Chuangzhi Fund raised funds of RMB 823.36 million in total. The FOF hassubscribed for and paid in capital contribution of RMB 205.84 million as a limited partner(including the above RMB 102.92 million from CCCIM and the rest was contributed by Fuxing,the other limited partner of the FOF). As the other limited partner of Shangfu Chuangzhi Fund,CCCF has separately subscribed for and paid in capital contribution of RMB 617.51 million. Inaddition, neither the Group nor CCCF did not invest in other sub-funds of the FOF. ShangfuChuangzhi Fund subsequently subscribed to the increased registered capital of Hubei AssetManagement Co., Ltd. for RMB 820.54 million, holding 22.6667% of its equity. In 2019, 9 out ofthe 12 sub-funds mentioned above were cancelled.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing andits actual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co.,Ltd. was frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to thesources of the capital contribution. As of the date of approval for the financial statements, therelevant equity was still frozen.
As of the approval date of the financial statements, the Group had not received any noticeof capital contribution other than the above contributions that had been made or any notice ofaction involving the Group, CCCF, FOF and its sub-funds.
In addition, as of December 31, 2023, the Group had other investment commitments totalingRMB 117.68 million (December 31, 2022: RMB 282.61 million).
For lease commitment as a lessee, please refer to Note VII. 82.
2. Contingencies
(1). Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB
| Item | 2023 | 2022 |
| Contingent liabilities resulting from the guarantee provided externally | 50,384,223.92 | 99,645,681.29 |
According to relevant regulations, the Group is required to provide mortgage loanguarantees to the bank for the sale of commercial housing before the purchaser of the housinghas completed the property ownership certificate. The outstanding guarantee amount as ofDecember 31, 2023 was RMB 4,629,333.68 (December 31, 2022: RMB 4,846,333.64). Thoseguarantees would be released after the issuance of the property ownership certificates and are
thus little likely to incur losses. Therefore, the management believed that it was not necessaryto make provision for the guarantees.According to the resolution of the 15th Meeting of the 7th Board of Directors on Jul 1, 2015,the Group applied to the Yiwu Branch of Agricultural Bank of China for a RMB 750 million loanfor Yiwu Shanglv and provided guarantee based on its shareholding ratio. The guarantee was ajoint and several liability guarantee, the maximum amount of guarantee was RMB 367.5 millionand the term was 11 years. As of December 31, 2023, Yiwu Shanglv actually borrowed RMB93,377,327.02 from banks (December 31, 2022: RMB 193,468,056.4). According to theguarantee contract, the Group should bear a guarantee liability of RMB 45,754,890.24(December 31, 2022: RMB 94,799,347.65) to Yiwu Branch of Agricultural Bank of China. SCOprovided a counter-guarantee for this guarantee.
(2). Notes shall also be made even if the Company has no important contingencies to bedisclosed:
□Applicable √Not applicable
3. Other
□Applicable √Not applicable
XVII. Post-balance sheet date events
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
| Item | Contents | Effect on financial status and operating results | Reasons for inability to estimate the effect |
| Issuance of super-short-term financing bonds | On March 11, 2024, the Company issued Zhejiang China Commodities City Group Co., Ltd.'s 2024 super-short-term financing bonds (Issue 1) for RMB 1 billion, with a term of 268 days and a one-time repayment of principal and interest when due, at an issuance interest rate of 2.40%. | ||
| Issuance of super-short-term financing bonds | On April 7, 2024, the Company issued Zhejiang China Commodities City Group Co., Ltd.'s 2024 super-short-term financing bonds (Issue 2) for RMB 1 billion, with a term of 261 days and a one-time repayment of principal and interest when due, at an issuance interest rate of 2.33%. |
2. Profit distribution
√Applicable □Not applicable
Unit: RMB
| Profits or dividends to be distributed | 1,096,866,835.20 |
| Profits or dividends announced through deliberation and approval | 1,096,866,835.20 |
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVIII. Other important events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Not applicable
(2). Prospective application
□Applicable √Not applicable
2. Significant debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1). Exchange of non-monetary assets
□Applicable √Not applicable
(2). Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1). Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In theidentification of region-based divisions, revenue is attributable to the divisions in the regionswhere the clients are located, and assets are attributable to the divisions in the regions wherethe assets are located. As the Group’s main operating activities and operating assets are bothconcentrated in mainland China, it is not required to report more detailed information onregion-based divisions.The Group’s businesses are organized and managed separately based on the nature ofbusiness and the products and services provided. Each business division of the Group is abusiness department or a subsidiary and provides the products and services that face the riskdifferent from that faced by other business divisions and bring the compensations differentfrom those brought by other business divisions. The detailed information on business divisionsis summarized as follows:
(a) Market operation segment refers to the business that the group is engaged in marketoperation, including the collection of business space usage fees and the rent of auxiliarybuildings and office buildings;
(b) The trade services division includes providing market-related supporting services;
(c) The supporting service division refers to the operational activities of hotels, includingguest room accommodation, catering services, as well as the design, production, publishing,and advertising agency business;
(d) The commodity sales division refers to the business of buying and selling commoditiessuch as export trade.
The transfer pricing between divisions is made based on the prices offered to third partiesand the then prevailing market prices.
The management manages the operating results of each business unit separately for thepurpose of allocating resources and evaluating performance. Division performance isevaluated based on the reported division profits.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
| Item | Market operation | Trade services | Supporting services | Sales of goods | Set-offs among divisions | Total |
| Revenue from external transactions | 3,353 | 626 | 514 | 6,807 | - | 11,300 |
| Revenue from inter-division transactions | 44 | 97 | 62 | 78 | 281 | - |
| Profits before tax | 3,066 | 102 | -62 | -3 | -105 | 3,208 |
| Total assets | 46,558 | 9,884 | 1,498 | 2,845 | 24,566 | 36,219 |
| Total liabilities | 27,080 | 5,124 | 1,476 | 1,953 | 17,118 | 18,515 |
| Capital expenditures | 1,357 | 18 | 6 | 355 | - | 1,736 |
| Long-term equity investment in joint ventures and associates | 5,877 | 1,145 | - | 1 | - | 7,023 |
(3). If the Company does not have reporting divisions or is unable to disclose the totalassets and total liabilities of each division, please explain
□Applicable √Not applicable
(4). Other statements
□Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□Applicable √Not applicable
8. Other
□Applicable √Not applicable
XIX. Notes to main items in financial statements of parent company
1. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance | Opening book balance |
| Within 1 year | ||
| In which: sub-items | ||
| Within 1 year | 32,222,205.22 | 20,584,932.68 |
| Within 1 year | 32,222,205.22 | 20,584,932.68 |
| 1 to 2 years | 621,620.47 | 1,764,722.07 |
| 2 to 3 years | 1,195,926.30 | 100,234.00 |
| Over 3 years | - | - |
| Total | 34,039,751.99 | 22,449,888.75 |
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion (%) | Amount | Provision ratio (%) | Amount | Proportion (%) | Amount | Provision ratio (%) | |||
| Accounts receivable for which bad debt provision is made by group | 34,039,751.99 | 100.00 | 98,315.30 | 0.29 | 33,941,436.69 | 22,449,888.75 | 100 | 417,498.04 | 1.86 | 22,032,390.71 |
| Among them: | ||||||||||
| Provision for bad debt by combination of credit risk characteristics | 34,039,751.99 | 100.00 | 98,315.30 | 0.29 | 33,941,436.69 | 22,449,888.75 | 100 | 417,498.04 | 1.86 | 22,032,390.71 |
| Total | 34,039,751.99 | / | 98,315.30 | / | 33,941,436.69 | 22,449,888.75 | / | 417,498.04 | / | 22,032,390.71 |
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Items for which the bad debts are provided for by combination: by combination of credit riskcharacteristics
Unit: RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Provision for bad debt by combination of credit risk characteristics | 34,039,751.99 | 98,315.30 | 0.29 |
| Total | 34,039,751.99 | 98,315.30 | 0.29 |
Description of combined provision for bad debts:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2023 | 417,498.04 | 417,498.04 | ||
| Balance as of January 1, 2023 in the current period | 417,498.04 | 417,498.04 | ||
| Provision made in the current period | 109,808.90 | 109,808.90 | ||
| Current reversal | 428,991.64 | 428,991.64 | ||
| Balance as of December 31, 2023 | 98,315.30 | 98,315.30 |
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□Applicable √Not applicable
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for accounts receivable | 417,498.04 | 109,808.90 | 428,991.64 | 98,315.30 |
| Total | 417,498.04 | 109,808.90 | 428,991.64 | 98,315.30 |
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other statementsNo
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
(5). Five debtors with the highest closing balances of accounts receivable and contractassets
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company is mainly engaged in market operation and hotel services and its revenuefrom an individual client is very low. Therefore, the combined accounts receivable from the topfive clients occupied a very small share in its total balance of accounts receivable.
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 12,892,088.01 | 329,607,469.39 |
| Total | 12,892,088.01 | 329,607,469.39 |
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not applicable
(2). Significant overdue interest
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of interest receivable due to changes inloss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNo
Explanation of significant changes in the book balance of dividends receivable due to changesin loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance | Opening book balance |
| Within 1 year | ||
| In which: sub-items | ||
| Within 1 year | 11,372,670.58 | 4,851,948.94 |
| Within 1 year | 11,372,670.58 | 4,851,948.94 |
| 1 to 2 years | 230,770.07 | 419,739.44 |
| 2 to 3 years | 1,086,758.22 | 322,708,656.80 |
| Over 3 years | 957,449.34 | 2,415,046.44 |
| Bad debt provision for other receivables | -755,560.20 | -787,922.23 |
| Total | 12,892,088.01 | 329,607,469.39 |
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Withholdings, deposit and margin | 13,444,205.52 | 6,560,139.05 |
| Reserve | 203,442.69 | 48,340.48 |
| Financial assistance receivable from joint ventures | - | 323,786,912.09 |
| Total | 13,647,648.21 | 330,395,391.62 |
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2023 | 787,922.23 | 787,922.23 | ||
| Balance as of January 1, 2023 in the current period | ||||
| Provision made in the current period | 43,219.60 | 43,219.60 | ||
| Current reversal | 75,581.63 | 75,581.63 | ||
| Balance as of December 31, 2023 | 755,560.20 | 755,560.20 |
Classification basis and bad debt provision ratio for each stageNoSignificant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether thecredit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for other receivables | 787,922.23 | 43,219.60 | 75,581.63 | 755,560.20 |
| Total | 787,922.23 | 43,219.60 | 75,581.63 | 755,560.20 |
Among them, important recovered or reversed amounts:
□Applicable √Not applicable
Other statementsNo
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
Of which, important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | Weight in the total closing balance of other receivables (%) | Nature of receivable | Account age | Closing balance of bad debt provision |
| Yiwu Junhuhui Entertainment Co., Ltd | 5,118,245.58 | 37.50 | Transactions between companies | Within 1 year | - |
| Yiwu China Commodities City Information Technology Co., Ltd. | 3,452,491.46 | 25.30 | Transactions between companies | Within 1 year | - |
| Yiwu Power Transmission and Transformation Engineering Co., Ltd. | 1,120,054.00 | 8.21 | Electricity charge | Over 3 years | - |
| Zhejiang Yuntong Advertising Co., Ltd. | 596,580.00 | 4.37 | Transactions between companies | Over 3 years | 596,580.00 |
| Yiwu Market Development Group Co., Ltd. | 337,168.00 | 2.47 | Transactions between companies | Within 1 year | - |
| Total | 10,624,539.04 | 77.85 | / | / | 596,580.00 |
(7). Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 4,720,325,641.28 | - | 4,720,325,641.28 | 4,980,206,448.14 | 570,000,000.00 | 4,410,206,448.14 |
| Investment in associates and joint ventures | 5,877,913,559.04 | - | 5,877,913,559.04 | 4,800,215,865.20 | - | 4,800,215,865.20 |
| Total | 10,598,239,200.32 | - | 10,598,239,200.32 | 9,780,422,313.34 | 570,000,000.00 | 9,210,422,313.34 |
(1). Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Current provision for impairment | Closing balance of impairment provision |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | 2,239,426,242.40 | 283,575.48 | - | 2,239,709,817.88 | - | - |
| Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | 571,277,386.09 | - | 571,277,386.09 | - | - | - |
| Yiwu Shangbo | 300,000,000.00 | 200,000,000.00 | - | 500,000,000.00 | - | - |
| Yiwu Commodities City Gonglian Property Co., Ltd. | 200,000,000.00 | - | - | 200,000,000.00 | - | - |
| Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. | 120,059,576.13 | 110,831.68 | - | 120,170,407.81 | - | - |
| Yiwu China Commodities City Big Data Co., Ltd. | 102,984,635.63 | 2,498,902.00 | - | 105,483,537.63 | - | - |
| Yiwu China Commodities City Import and Export Co., Ltd. | 102,334,012.67 | 214,031.26 | - | 102,548,043.93 | - | - |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | 101,265,319.13 | 483,779.09 | - | 101,749,098.22 | - | - |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 101,540,253.96 | 316,528.77 | - | 101,856,782.73 | - | - |
| Yiwu China Commodities City Tourism Development Co., Ltd. | 100,977,959.14 | 255,765.42 | - | 101,233,724.56 | - | - |
| Yiwu China Commodities City Logistics and Distribution Co., Ltd. | 101,931,157.09 | 529,842.09 | - | 102,460,999.18 | - | - |
| Zhejiang Huajie Investment and Development Co., Ltd. | 74,423,097.53 | 4,627,882.71 | - | 79,050,980.24 | - | - |
| Yiwu China Commodities City Information Technology Co., Ltd. | 50,965,115.90 | 117,936.28 | - | 51,083,052.18 | - | - |
| Hangzhou Shangbo Nanxing Property Co., Ltd. | 50,000,000.00 | - | - | 50,000,000.00 | - | - |
| Yiwu China Commodities City Exhibition Co., Ltd. | 19,666,060.90 | 1,307,554.53 | - | 20,973,615.43 | - | - |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | 36,668,690.36 | 24,108,860.75 | - | 60,777,551.11 | - | - |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | 11,375,213.90 | 596,156.13 | - | 11,971,370.03 | - | - |
| Yiwu China Commodities City Research Institute Co., Ltd. | 11,208,192.49 | 430,871.78 | - | 11,639,064.27 | - | - |
| Zhejiang Yindu Hotel Management Co., Ltd. | 13,534,551.93 | 1,586,178.55 | - | 15,120,730.48 | - | - |
| Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | 600,000.00 | - | 600,000.00 | - | - | - |
| Yiwu Shangbo Shuzhi Enterprise Management Co., Ltd. | 225,600,000.00 | 74,400,000.00 | - | 300,000,000.00 | - | - |
| Zhejiang Xunchi Digital Technology Co., Ltd. | 444,368,982.89 | 127,882.71 | - | 444,496,865.60 | - | - |
| Total | 4,980,206,448.14 | 311,996,579.23 | 571,877,386.09 | 4,720,325,641.28 | - | - |
(2). Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
| Investment Unit | Opening amount Balance | Change in the current period | Closing amount Balance | Closing balance of impairment provision | |
| Investment gains or losses recognized with the equity method | Change in other benefits | ||||
| 1. Joint ventures | |||||
| Yiwu Shanglv Investment Development Co., Ltd. | 396,972,448.93 | 38,957,479.65 | - | 435,929,928.58 | - |
| Yiwu Rongshang Property Co., Ltd. | 65,650,902.46 | -205.43 | - | 65,650,697.03 | - |
| Yiwu Chuangcheng Property Co., Ltd. | 28,449,292.72 | -763,659.31 | - | 27,685,633.41 | - |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 75,740,065.56 | 851,479,615.72 | - | 927,219,681.28 | - |
| Other | 25,064,023.73 | -1,532,029.01 | - | 23,531,994.72 | - |
| Sub-total | 591,876,733.40 | 888,141,201.62 | - | 1,480,017,935.02 | - |
| 2. Associates | |||||
| Yiwu Huishang Micro-finance Co., Ltd. | 78,209,979.82 | 377,956.29 | 78,587,936.11 | ||
| Zhejiang Chouzhou Financial Lease Co., Ltd. | 489,205,549.91 | 85,753,216.38 | 574,958,766.29 | ||
| Pujiang Lvgu Property Co., Ltd. | 374,601,160.67 | -28,304,294.27 | 346,296,866.40 | ||
| Yiwu China Commodities City Property Development Co., Ltd. | 2,984,810,019.41 | 142,231,123.08 | 3,127,041,142.49 | ||
| Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. | 145,563,439.33 | -13,581,395.16 | 131,982,044.17 | ||
| Other | 135,948,982.66 | 3,079,885.90 | 139,028,868.56 | ||
| Sub-total | 4,208,339,131.80 | 189,556,492.22 | 4,397,895,624.02 | ||
| Total | 4,800,215,865.20 | 1,077,697,693.84 | 5,877,913,559.04 | ||
(3). Impairment testing of long-term equity investments
□Applicable √Not applicable
Other notes:
No
4. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main business | 3,324,037,682.76 | 990,912,064.53 | 1,661,326,251.95 | 856,617,946.98 |
| Other businesses | 317,697,773.72 | 92,953,576.91 | 280,256,309.07 | 80,555,208.55 |
| Total | 3,641,735,456.48 | 1,083,865,641.44 | 1,941,582,561.02 | 937,173,155.53 |
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total | |
| Operating revenue | Operating cost | |
| Types of goods | ||
| The use of shops in the China Commodities City markets and the supporting services for operation | 3,030,810,080.75 | 518,351,009.71 |
| Hotel accommodation and catering services | 298,712,858.87 | 265,378,120.34 |
| Leasing | 286,324,773.15 | 133,390,569.90 |
| Usage fee | 6,549,230.44 | - |
| Other services | 19,338,513.27 | 166,745,941.49 |
| Classified by business area | ||
| Chinese Mainland | 3,641,735,456.48 | 1,083,865,641.44 |
| Revenue recognition time | ||
| Revenue confirmed at certain time point | 175,816,268.19 | 144,694,873.14 |
| Revenue confirmed during certain time period | 3,465,919,188.29 | 939,170,768.30 |
| Total | 3,641,735,456.48 | 1,083,865,641.44 |
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
Unit: RMB
| Type of contract | Current period |
| The use of shops in the China Commodities City markets and the supporting services for operation | 3,011,011,456.55 |
| Hotel accommodation service | 8,997,757.36 |
| Other services | 7,257,064.68 |
| Total | 3,027,266,278.59 |
(3). Contract performance obligations
□Applicable √Not applicable
(4). Amortization to remaining contract performance obligations
√Applicable □Not applicable
As of the end of the reporting period, the revenue amount attributable to performance obligationsunder contracts that had been signed but not yet partially or fully fulfilled was RMB3,032,044,768.16. The Group expects this amount to be recognized as revenue in the next 5years as the relevant services are provided.
(5). Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
The information related to the performance obligations of the Group is as follows:
The use of shops in the China Commodities City markets and the supporting services foroperationThe contractual performance obligation is fulfilled when providing the use of shops in theChina Commodities City markets and the supporting services for operation. For the use ofshops in the Commodity City and the supporting services for business, the progress of contractperformance is determined based on the number of using days of the shops. Customersusually need to pay in advance before the use of shops in the China Commodities City marketsand the supporting services for operation are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. Forthe hotel accommodation business, the progress of contractual performance is determinedbased on the number of days of stay. For hotel accommodation services, a partial deposit iscollected from the customer first, and the remaining contract price is usually collected upon thecompletion of the hotel accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. Thecontract price for hotel catering services is usually charged when the hotel catering servicesare performed.
Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service isprovided. For the fixed-time paid funding service, the progress of contractual performance isdetermined based on the number of using days the fund. For the fixed-time paid fundingservice, the contract price is usually charged regularly as agreed in the contract.
5. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Income from long-term equity investment calculated with the equity method | 1,077,697,693.84 | 932,395,547.67 |
| Investment income from disposal of long-term equity investment | - | 270,094.36 |
| Dividend income from other equity instruments investment during holding period | 3,762,820.14 | 12,542,733.80 |
| Investment income from disposal of held-for-trading financial assets | 13,602.59 | 47,694.29 |
| Income acquired from other non-current financial assets during the holding period | 5,349,937.60 | 2,978,950.32 |
| Total | 1,086,824,054.17 | 948,235,020.44 |
Other notes:
No
6. Other
□Applicable √Not applicable
XX. Supplements
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB
| Item | Amount | Description of |
| Non-current asset disposal gains and losses, including the offsetting portion of the provision for impairment of assets | 139,113,943.98 | |
| Government grants that are recognized in the current profit or loss, excluding the government grants that are closely related to the normal operation of the Company and provided in a fixed amount or quantity and that have a continuous impact on the Company's gains and losses according to the national polices and certain standards | 32,404,875.29 | |
| Except for effective hedging business related to the normal operation of the Company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | -51,087,595.90 | |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 18,907,795.24 | |
| Profits and losses arising from external entrusted loans | 2,525,847.12 | |
| Net income from other non-operating activities | 6,365,155.41 | |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 121,465,746.29 | |
| Less: effect of income tax | 60,306,979.87 | |
| Effect of minority interest (after-tax) | 1,892,636.73 | |
| Total | 207,496,150.83 |
If the Company recognizes non-recurring profit and loss items that are not listed in theExplanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securitiesto the Public as non-recurring profit and loss items with significant amounts, and define non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public as recurring profit and loss items, thereasons should be explained.
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
2. ROE and EPS
√Applicable □Not applicable
| Profits in the reporting period | Weighted average ROE (%) | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profits attributable to common shareholders of the Company | 16.06 | 0.49 | 0.49 |
| Net profits attributable to common shareholders of the Company after deducting non-recurring gains and losses | 14.82 | 0.45 | 0.45 |
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Other
□Applicable √Not applicable
Chairman of Board of Directors: ZHAO WengeDate of approving by the Board of Directors for release: April 17, 2024Amendment
□Applicable √Not applicable