S.F. Holding Co., Ltd. 2021 Semi-Annual Report
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
S.F. Holding Co., Ltd.
2021 Semi-Annual Report
August 2021
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 1 Important Information, Table of Contents, and DefinitionsThe Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior managementhereby guarantee that the contents of the Semi-Annual Report are true, accurate, and complete, and that there areno misrepresentations, misleading statements, or material omissions, and shall assume individual and joint legalliabilities.
Wang Wei, the Company’s responsible person, Chen Fei, the person in charge of accounting work, and HuXiaofei, the person in charge of the accounting department (accounting officer), hereby declare and warrant thatthe financial report within the Semi-Annual Report is true, accurate, and complete.
All directors have attended the Board meeting approving the Semi-Annual Report.
The Company is required to comply with the disclosure requirements presented in the Shenzhen StockExchange for Industrial Information Disclosure No.9 – Listed Companies Engaged in the Express DeliveryServices Business.
In this Semi-Annual Report, the Company details the possible risk factors and countermeasures that mayoccur in the future. For more information, refer to “Section X. Possible Risks and Countermeasures” in “Chapter 3.Management Discussion and Analysis.” Investors shall refer to this information.
The Company does not plan to issue cash or equity dividends, nor to convert equity reserve into share capitalof the Company.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Table of Contents
Chapter 1 Important Information, Table of Contents, and Definitions ...... 2
Chapter 2 Company Profile and Key Financial Indicators ...... 7
Chapter 3 Management Discussion and Analysis ...... 10
Chapter 4. Corporate Governance ................................................................................................. 79
Chapter 5. Environmental and Social Responsibilities ................................................................ 69
Chapter 6. Significant Events ......................................................................................................... 72
Chapter 7 Share Changes & Shareholder Details I. Changes in Shares ................................... 121
Chapter 8 Preferred Shares ...... 125
Chapter 9 Bonds ...... 126
Chapter 10 Financial Statements ...... 127
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
List of Documents Available for Inspection
(1) Financial statements signed and sealed by the legal representative, the person in charge of finance and the person in charge of theaccounting department of the Company.
(2) The original copies of all documents and announcements of the Company which have been publicly disclosed in newspapersdesignated by the China Securities Regulatory Commission during the reporting period.
(3) The original text of the 2021 Semi-Annual report signed by the chairman of the Board of Directors.
(4) The place where the above documents are maintained: the office of the Company’s Board of Directors.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Definitions
| Term | Description |
| Reporting period | January 1, 2021 to June 30, 2021 |
| The same period of previous year | January 1, 2020 to June 30, 2020 |
| The Company, The listed Company, SF Holding, SF | S.F. Holding Co., Ltd. |
| RMB | Renminbi yuan |
| Mingde Holding | Shenzhen Mingde Holding Development Co., Ltd., the controlling shareholder of S.F. Holding Co., Ltd. |
| Taisen Holding | Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a wholly-owned subsidiary of S.F. Holding Co., Ltd. |
| Hive Box Technology | Shenzhen Hive Box Technology Co., Ltd., a commonly controlled entity of S.F. Holding Co., Ltd. |
| SF Intra-city, Intra-city Industrial | Hangzhou SF Intra-city Industrial Co., Ltd. is a subsidiary of S.F. Holdings Co., Ltd. |
| CSRC | China Securities Regulatory Commission |
| HK Stock Exchange | The Stock Exchange of Hong Kong Limited |
| HK SFC | The Securities and Futures Commission of Hong Kong |
| Kerry Logistics | Kerry Logistics Network Limited,a company listed on the Main Board of The Stock Exchange of Hong Kong Limite. Stock abbreviation: Kerry Logistics; Stock code: 00636.HK |
| SF REIT | SF Real Estate Investment Trust,a joint venture of S.F. Holding Co., Ltd. The SF REIT has been listed on the Main Board of the HK Stock Exchange since May 17, 2021, with the stock code of “2191.HK” and the stock abbreviation of “SF REIT”. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 2 Company Profile and Key Financial Indicators
I. Company Profile
| Stock Abbreviation | SF Holding | Stock Code | 002352 |
| Listed Stock Exchange | Shenzhen Stock Exchange | ||
| Chinese Name of the Company | 顺丰控股股份有限公司 | ||
| Chinese Name Abbreviation of the Company | 顺丰控股 | ||
| English Name of the Company | S.F. Holding Co., Ltd. | ||
| English Name Abbreviation of the Company | SF Holding | ||
| Legal Representative of the Company | Wang Wei | ||
| Board Secretary | Securities Affairs Representative | |
| Name | Ling Gan | Jing Zeng |
| Address | Block B,TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province, P.R.China | Block B,TK Chuangzhi Tiandi Building, Keji South 1st Road, Nanshan District, Shenzhen, Guangdong Province, P.R.China |
| Tel No. | 0755-36395338 | 0755-36395338 |
| Fax | 0755-36646688 | 0755-36646688 |
| sfir@sf-express.com | sfir@sf-express.com |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
IV. Key Accounting Information and Financial IndicatorsDoes the Company need to adjust its financial information retrospectively or restate its previous year accounting information?
□Yes √No
| Current reporting period | The same period of previous year | Increase/Decrease over the same period of previous year | |
| Revenue (RMB) | 88,343,929,823.78 | 71,129,007,738.21 | 24.20% |
| Net profit attributable to shareholders of the parent company (RMB) | 759,921,074.24 | 3,761,593,296.43 | -79.80% |
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company (RMB) | -477,088,774.82 | 3,444,761,400.75 | -113.85% |
| Net cash flow from operating activities (RMB) | 4,331,632,843.16 | 6,931,712,320.10 | -37.51% |
| Basic earnings per share (RMB/share) | 0.17 | 0.85 | -80.00% |
| Diluted earnings per share (RMB/share) | 0.17 | 0.85 | -80.00% |
| Weighted average return on net assets | 1.34% | 8.51% | A decrease of 7.17 percentage points |
| End of the current reporting period | End of previous year | Increase/Decrease over previous year end | |
| Total assets (RMB) | 133,393,058,169.57 | 111,160,042,260.97 | 20.00% |
| Total equity attributable to shareholders of the parent company (RMB) | 56,681,222,769.04 | 56,443,050,238.39 | 0.42% |
| Item | Amount | Note |
| Investment income from disposal of subsidiaries | 942,964,204.15 | It mainly represents gains from disposal of subsidiaries to SF REIT, for details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Gains or losses on disposals of non-current assets (including offsetting amount for the provision of impairment of assets) | -6,632,153.94 |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Government grants recognized in profit or loss for the current period (excluding government grants that are closely related to the Company’s business operations, with fixed quotas or amounts in accordance with national uniform standards) | 383,344,061.72 | It mainly represents fiscal approportion, transportation capacity subsidies, tax refunds and employment stabilization subsidies, etc. |
| Gains generated where investment costs of acquisition of subsidiaries, associates and joint ventures by the Company are less than the Company’s share of the fair value of the investee's identifiable net assets | 2,375,341.81 | |
| Gains or losses from changes in fair value of financial assets held for trading, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and investment gains or losses arising from the disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debt investments, excluding hedging activities related to the normal business operations of the Company | 21,622,194.25 | |
| Reversal of provision for impairment of receivables and contract assets that have been assessed for impairment individually | 18,564,776.44 | |
| Net amount of other non-operating income and expenses | -23,918,665.39 | |
| Less: Income tax effect | 94,158,037.89 | |
| Profit or loss attributable to minority shareholders (after tax) | 7,151,872.09 | |
| Total | 1,237,009,849.06 | -- |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 3 Management Discussion and AnalysisI. Primary business of the Company during the reporting period
Is the Company required to comply with disclosure requirement of a particular industry?YesExpress Delivery Service Industry
(I) Industry development
1. China logistics industry has large market size and broad market space, the potential for consolidation is vastDespite of COVID-19’s continious uncertainties on the global economy, China has entered a “new normal” for pandemicprevention control and economy recovered robustly. Driven by the steady growth of industrial logistics in China, growing import andexport momentum and the continuously rapid development of new drivers related to people’s livelihood and consumption, theprosperity index of logistics industry in China was in a relatively high range. From 2010 to 2020, the total social logistics expenditurein China increased from RMB7.1 trillion to RMB14.9 trillion, with a compound annual growth rate of 7.7%, In 2020, the total sociallogistics expenditure accounted for 14.7% of GDP. Among them, the express delivery service industry was a key segment of thegigantic logistics market. According to the data from the State Post Bureau, from 2010 to 2020, the business volume and incomefrom the express delivery service industry increased by 36.3 times and 15.3 times respectively, with shipments delivered totalling
49.39 billion in the first half of 2021, representing a year-on-year increase of 45.8%, the business income totalling RMB 484.21billion, representing a year-on-year increase of 26.6%, and the average daily handling volume exceeding 300 million in June this year.China’s express delivery market has been the world’s largest for many years, maintaining robust growth momentum.
Despite of the broad logistics market in China, the market of the logistics industry in China is still very fragmented comparedwith that in developed countries. According to the data released by the China Federation of Logistics and Purchasing in November2020, the total revenue from logistics business of the comprehensively top 50 logistics companies in 2019 was RMB1.1 trillion, butaccounted only for 10.7% of China’s total revenue from logistics business of RMB10.3 trillion in 2019, with a low degree ofconcentration and huge space for future integration. Along with the rapid growth of the express service industry in China in recentyears, express service enterprises diverged in terms of business volume, market share, business model and profitability and etc.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Leading express enterprises built up cost advantage with scale effect and further expanded their market share, resulting in the gradualwithdrawl of certain small and medium sized express enterprises and making the market more concentrated. Data from the State PostBureau shows that the brand concentration index, CR8, came in at 80.8 in the first half of 2021. Meanwhile, leading expressenterprises kept optimizing their services, explored diversified business and built new business lines, such as freight, cold chain andsupply chain leveraging on talent, technology and capital, in a bid to expand their network coverage both at home and abroad andbuild end-to-end integrated logistics service capabilities. Besides, they seek to enhance operation efficiency with technology anddeveloped the “scattered, chaotic and poor” logistics industry in a scaled, standardized and efficient manner. With the continuousdevelopment of logistics industry, upgrading information technology brought new technologies for logistics and new business formssprung up, coupled with the upgrading supply chain, leading an increasingly concentrated logistics industry and making the marketdivided by several leading large-scale professional logistics companies.
2. The trend of empowering different industries to build digital, intelligent, efficient and flexible supply chains throughtechnology advancement is providing new opportunities for logistics companiesIn recent years, big data, cloud computing, artificial intelligence and other technologies have been widely practiced in logisticsscenarios. Through the extensive application of RFID, sensors, GPS, cloud computing and other information technologies in logisticstransportation, warehousing, packaging, loading and unloading, and distribution processing , distribution, information service andother links, the intelligentization, automation and visualization of the logistics system have been realized, which greatly improves thelogistics efficiency. The proportion of total social logistics costs to GDP is generally used to measure the level of social logisticscosts and modernization. The lower the proportion, the higher the overall social logistics efficiency and the higher the modernizationlevel of the logistics industry. From 2010 to 2020, the proportion of total social logistics costs to GDP in China dropped from 17.8%to 14.7%, a decrease of 3.1 percentage points. The reason is that on the one hand, the logistics industry has moved from lowconcentration and decentralized competition to intensification and scale by giving full play to the effect of large-scale operation; onthe other hand, the improvement of logistics technology and intelligent level has shortend the logistics operation time and laborintensity, improved the overall transport quality and efficiency, and the logistics industry has achieved remarkable results in costreduction and efficiency enhancement. However, this proportion is still at a relatively high level compared with 6%~8% in developedcountries in Europe and the United States, and there is still much room for improvement in the overall operational efficiency ofChina's logistics industry.On March 16, 2021, 13 departments including the National Development and Reform Commission jointly issued the "Opinionson Accelerating the Promotion of High-Quality Development of Manufacturing Services (《关于加快推动制造服务业高质量发展的意见》)" (Fa Gai Chan Ye [2021] No. 372), which proposed the need to accelerate the upgrading of professional andcomprehensive service capabilities for manufacturing industry and improve the overall quality and level of the manufacturingindustry chain; use 5G, big data, cloud computing, artificial intelligence, blockchain and other new-generation informationtechnologies to vigorously develop intelligent manufacturing； develop a modern logistics service system, facilitate the integrationand sharing of information resources; promote the real-time collection and interconnection of information in upstream anddownstream links such as procurement, production and circulation, and improve the level of integrated operation of production,manufacturing and logistics; promote the application of perception technology in key nodes of the manufacturing supply chain;promote the intelligentization of supply chain system in key industries, and gradually realize the visualization of supply chain; with afocus on the construction of “One Belt and One Road”, encourage professional services such as supply chain management to go out
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
in concert with manufacturing industry, and enhance the ability to allocate resources in the global service market, etc..It can be seen that, at the critical stage of the gradual improvement of the new generation of information technology andinfrastructure, the vigorous development of intelligent manufacturing and the promotion of industrial upgrading in China, thelogistics industry in China is facing historic opportunities and key time windows to contribute to the promotion of manufacturingvalue chain, drive digital visualization of supply chain, build modern logistics service standards, and enhance the global influenceand competitiveness of China's manufacturing supply chain. In particular, the epidemic has rapidly change the behavior of endconsumers to online consumption, and the online penetration rate of commodities has continued to increase with new forms of onlineretail such as traditional e-commerce platforms, live streaming e-commerce, short video e-commerce and community group buyingemerging in an endless stream, and under the background of the significant increase of customer acquisition cost on online platforms,brands are also paying more attention to private domain traffic. Therefore, the new business model with decentralized channel flow,fragmented orders and online and offline integration will put forward higher requirements for brand owners' ability to perceive andrespond to market changes, be flexible and respond efficiently in the overall supply chain. How to achieve consumer insight, accuratemarketing forecasting, omnichannel operation, demand-matching production, fast inventory turnover, and establish a DTC (Direct toCustomer) flexible supply chain system with efficient response has become the key to win the market for brands. The entire supplychain, from commodity supply to reaching consumers, will be reshaped: the production- and channel-centric "push" model isevolving towards a consumer-centric "pull" model, and the planned, high-volume traditional logistics delivery model will shift to amore flexible and agile approach. In this process, third-party logistics enterprises deeply cooperate with brand owners and penetrateinto every link of their supply chain services. With rich practical experience in logistics scenarios, combined with big data andalgorithm technology, AIoT, and software and hardware system integration capabilities, they help brand owners build digital, visualand intelligent supply chain systems. The transformation of supply chain from the traditional cost center to the consumer-centricenterprise value creation will be a new opportunity for third-party logistics enterprises and customers to work together to achievewin-win results, upgrade their industries and services, and gain a broader market share in the future.
3. Under the guidance of government policies, express delivery industry is looking to move on from price war to a moreorderly market, and shifting from homogeneous competition to providing comprehensive logistics servicesAfter many years of rapid development, China has grown into the world’s largest express delivery market by business volume.According to the data from the State Post Bureau, from 2010 to 2020, shipments delivered by Chinese express delivery companiesincreased to 83.36 billion from 2.34 billion, representing a CAGR of approximately 42.9%, and the business volume of expressdelivery is expected to reach 95.5 billion in 2021. During the 13th Five-Year Plan, China’s parcel delivery volume has surpassed thatof the United States, Japan and Europe combined, and accounts for more than 50% of total global growth, making it the powerhouseand stabilizer for the international post industry.The Chinese express delivery industry is currently going through a transition from the growth stage toward the maturity phase,and the concentration of the market is increasing. E-commerce market remains the primary driving force of express industry growth,but there exists severe homogeneous competition among e-commerce delivery services – most e-commerce delivery businesses relyheavily on price competition to grow market share. Meanwhile, with the entry of new entrants supported by the capital markets,low-price strategy has become a main way to occupy the e-commerce delivery market share rapidly for new entrants. To this end, theoriginal competitive landscape of e-commerce delivery industry was hit hard, and the price war among the e-commerce deliveryindustry was increasingly intensified. This has resulted in a consistent decline of the overall express delivery price per shipment in
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
recent years – from RMB24.60 per shipment in 2010 to RMB10.55 per shipment in 2020.
In this year, regulatory authorities have promulgated a number of policies to rectify the chaos in express delivery industry. InYiwu, Zhejiang, where has huge express shipments and fierce price competition, the regulatory authorities have issued caution lettersto some express delivery companies, requiring them not to dump by reducing the price far below the cost, and related outlets havebeen requested to suspend their operation. On April 22, in the 70th executive meeting of the Government of Zhejiang Province,Zhejiang Express Delivery Industry Development Regulation (Draft) (《浙江省快递业促进条例（草案）》) was approved, whichstipulates that express delivery operators shall not provide express delivery services at a price below the cost; e-commerce platformoperators shall not use technologies and other means to impede the normal services provided by express delivery operators. On June23, seven departments including the Ministry of Transport and the State Post Bureau jointly published the Opinions on the Protectionof the Legal Rights and Interests of the Couriers (《关于做好快递员群体合法权益保障工作的意见》), which proposes specificmeasures against unfair market competition, differentiated regional delivery charges and other issues, and requires to ensurereasonable remuneration for couriers and fulfill the responsibilities of express delivery companies. The gradual improvement ofrelevant laws and regulations will facilitate the orderly operation and reasonable competition of the participants in express deliverymarket, and the industry will head into a stage of high-quality development.Meanwhile, with the increasing business scenarios diversity and supply chain complexity, customers will have increasing needsof the outsourcing service of overall supply chain management, and will be no longer satisfied with single delivery service of expressdelivery companies. In line with the diversification trend of customer needs, leading companies in the domestic express deliveryindustry also have started to actively expand diversified businesses to meet customers’ needs. In recent years, leading companies ofexpress delivery industry have been committed to expanding new tracks to march into new fields and tried to integrate new business
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
forms to offer services. With diversified first-mover advantage, leading companies in the industry established competitive advantagein comprehensive logistic service capability. It is expected that with the specialization and internationalization of the segregation ofduties in the industry, one-stop comprehensive solution capabilities will be the core competitiveness of courier and logisticscompanies in the future.
4. Due to strong demand for cross-border logistics services, Chinese corporates need to cooperate with Chineselogistics players with international end-to-end supply chain services capabilities
Thanks to effective pandemic prevention and control measures, China took the lead in resuming work and production under theglobal pandemic, highlighting its advantages in the complete manufacturing industry chain and boosting the import and export tradevolumes. According to statistics released by the General Administration of Customs in July this year, total value of Chinaexports and imports of goods in the first half of 2021 reached RMB18.07 trillion, representing a increase of 27.1% over the sameperiod last year, of which exports reached RMB9.85 trillion, representing a increase of 28.1%. Meanwhile, the pandemic alsoaccelerated the trend towards an online shift of global trade and consumption and promoted the rapid growth of cross-bordere-commerce industry. According to data from the General Administration of Customs, in the first half of 2021, China's imports andexports from cross-border e-commerce companies developed with a good momentum, recording total value of RMB886.7 billion,representing a year-on-year increase of 28.6%. The General Administration of Customs and other government departments have alsointroduced a series of measures to deepen cross-border trade facilitation reform and optimize the business environment at ports. Withthe benefits from the industry and policies, China's import and export is expected to maintain good growth.
With the booming cross-border trade and the continuous support of national policies such as“the Belt and Road” initiatives,Chinese brands also leveraged on the historic opportunity to expand overseas markets and promote brands internationalisation.However, they also faced risks of complex and volatile international environment and high uncertainties, which proposed greatchallenges to the safe and stable operation of the industry chain and supply chain.This prompted brand owners to re-examine thesafety and reliability of their international supply chain layout, and the global industry chain will be restructured. Therefore, buildingthe foundations for an independent and controllable express logistics and supply chain will be the key to assisting the globalisation ofChina`s industry chain, and the enhanced competitiveness and voice of brand owners will drive domestic cross-border logisticscompanies to expand their business with brands, so as to accelerate the globalization of China's logistics supply chain and bringenormous opportunities for the international supply chain business of China’s express logistics companies.
In addition, with the increasing penetration rate of global online consumption and the rapid growth of cross-border e-commerce,cross-border logistics is shifted towards fragmented demand, increasing cargo volume and direct customer proportion and changingindustry services from partial process to door-to-door full process. However, cross-border logistics still has common pain points atthe current stage, such as slow timeframe, uncertain delivery time, various chain participants, opaque routing, low customs clearanceefficiency and price fluctuations. The instability of fulfillment services affects consumers' shopping experience and limits thebusiness expansion of cross-border e-commerce to some extent and increases the operational risks of enterprises. Therefore, brandowners are urgently seeking for the cross-border logistics service providers with stable and efficient end-to-end international supplychain solutions. In particular, with the shortage of logistics warehouse resources due to the pandemic, international express logisticsservice enterprises that have stable international cargo air resources as well as strong localized operation capabilities of customclearance, overseas warehouses and landed distribution, and can provide efficient and agile one-stop fulfillment services will be morecompetitive. With the globalization of China’s manufacturing supply chain and the rapid development of cross-border e-commerce,
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
comprehensive cross-border logistics service providers with strong international logistics network and core scarce resources willcontinue to gain market share and gradually develop into leading players.
5. Green (environmental-friendly) express services have evolved from conceptual ideas to actual implementation, andare expected to develop further alongside the green supply chain to create additional "green value"
China at the United Nations (UN) General Assembly made it clear that "China will increase its nationally determinedcontributions, adopt more forceful policies and measures, strive to peak its carbon dioxide emissions by 2030 and achieve carbonneutrality by 2060". Since the target was proposed, the intensity of carbon neutrality policies has increased significantly, withministries and commissions following up with detailed policies. In January 2021, the State Post Bureau proposed to accelerate thegreen transformation of express packaging, and continuously improve the industry regulations, standards and policy system in linewith the concept of green development. It was also proposed to vigorously implement the "2582" Project in 2021, among others,special treatment will be carried out for excessive packaging bags of heavy metals and certain substances. In March 2021, theMeasure on Express Mail Package Management promulgated by the Ministry of Transport was formally implemented. The Measurespecifies the unified management responsibility of delivery corporate headquarters, regulates that delivery enterprise shall strictlyimplement the package management system, purchase and use packing materials approved by the national regulations, prefer toadopt a reusable and easily recyclable packaging, optimize the express mail packaging, reduce the use of packaging and encouragedelivery companies to recycle packaging. In July 2021, the "Fourteenth Five-year Plan for Circular Economy Development" wasrolled out. By 2025, e-commerce express will basically realize non-secondary packaging, and the scale of recyclable expresspackaging applications will reach 10 million.
It is foreseeable that we are moving forward to a sustainable future. The supply chain industry will definitely adapt to this hugechange of green industry, realize carbon emission management and accelerate the low-carbon transformation of warehousing,packaging, transportation and delivery through scientific and technological means as well as advanced low-carbon technologies. Wewill also further extend the green value to the supply chain, reduce customer carbon emissions, help customers to create green value,and jointly step into the industry with science and technology, efficient, clean and green.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(II) Primary business, products and its use, operating models etc. of the Company
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
SF Holding is the largest integrated logistics service provider in China, the fourth largest express enterprise worldwide in termsof market capitalization, and is committed to becoming a data and technology-driven company providing independent third partysolutions. It empowers customers with leading technology and provides customers with smart and integrated supply chain solutionscovering various industries and application scenarios.
With a focus on the logistics ecosystem, the Company horizontally expands its diversified businesses while vertically deepensits product stratification, so as to meet the needs of different market segments, and cover the complete supply chain of customers.The main businesses and services provided include: Express delivery business, including high-quality door-to-door express deliveryproducts that meet the rapid delivery needs of individual and corporate customers, and cost-effective economic express products thatserve the majority of merchants in the e-commerce market, and provide professional integrated warehousing management andwarehousing allocation services; Freight business, including door-to-door transportation and delivery services for large-size parcels,less-than-truck-load (“LTL”), and large-volume heavy cargo for the mid-to-high-end market, as well as economical freight servicesfor the main market; Cold Chain and Pharmaceuticals business , including professional cold chain integrated services based onstorage, sorting, packaging, trunk transportation, urban distribution, and door-to-door delivery with multi-temperature controlledstorage for businesses in the fresh and frozen food industry, as well as the plarmaceutical logistics and transportation services thatserve various market entities such as manufacturers, distribution companies, disease control centers, hospitals, pharmacies, andpharmaceutical e-commerce companies; Intra-city instant delivery business , including instant logistics and deliery services forbrand customers and small and medium-sized businesses to provide catering takeaway, near-field e-commerce, local retail and otherscenarios, as well as providing local life services of help taking, help sending, help buying, and help handling affairs for individualusers; International business, including high-efficiency standard express to meet the needs of cross-border express delivery,cost-effective economic express to meet the needs of cross-border e-commerce, and integrated international supply chain servicescovering LTL and overseas warehouses that serve customers' international operations; Supply chain business, driven by technologyand based on SF’s well-established logistics network and product matrix, it integrates the advanced supply chain managementexperience of SF DSC (formerly known as “SF DHL”) and New Havi, to provide customers with intelligent software and hardwaresystem integration services that help them realize digital supply chain transformation, as well as a complete set of supply chainsolutions for supply chain planning, layout optimization, operation execution and implementation.
After years of development, by virtue of the Company’s high penetrating delivery network covering China and major countriesand regions in the world, the Company has quickly extended to freight, cold chain, intra-city delivery, supply chain and other fieldsthrough internal incubation and merger and acquisition, so as to build a complete integrated comprehensive logistics service system.We can not only provide end-to-end quality logistics services, but also provide integrated supply chain solutions throughout theprocurement, production, distribution, sales and aftersales for customers. Based on the diverse needs of different industries,customers and scenarios, SF Holding adheres to the “customer-centric, demand-driven and experience-based” product designphilosophy that focuses on each industry’s unique characteristics, and starts from the application scenarios of customers to drill intotheir requirements for different use cases within the end-to-end whole process and other individual requirements of customers. ThusSF Holding is able to design suitable products, services and solutions for customers while creating differentiated competitiveadvantage, and such product design in turn drives internal resource allocation, optimizes the product mix and enables thedevelopment of the solution capability.
In addition, SF Holding always attaches importance to research and development (R&D) of technology and adheres to theforward-looking layout. The Company has technology and practical application ability that stay ahead of peers in the cutting-edgefields such as artificial intelligence (AI), big data, robotics, Internet of Things (IoT), logistics map and blockchain. Relying on the
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
diversified business development of the Company, its services have gradually penetrated into the end-to-end value chain parts of thewhole process of manufacturing and commercial retail in all walks of life, therefore accumulating extensive logistics scenarios andmassive data. In combination with the R&D and application of continuously innovative logistics technology, we realise thedigitalized and efficient operation of the whole process within the Company, which assists to the growth of diversified businesses andprovide customers with high quality and accurate delivery services. Moreover, with the continuous accumulation of extensivescientific and technological capabilities and experience, we conduct continuous iteration and upgrading to work out leadingtechnology products and smart logistics solutions. With science and technology as the entry point, we work with industry customersto implement digital transformation of supply chain in addressing problems such as information silo, inventory fragmentation,response lag, prediction error, low efficiency and so on under the traditional supply chain mode, and truly realise real-timeinformation collection, interconnection and online visibility of the whole supply chain. We carry out front-end procurement,production, inventory and sales under the accurate prediction of direct to customer (DTC), establish flexible supply chain systemscapable of real-time response, flexible and efficient, which not only to helps our clients achieve cost reduction and benefit increase,but also promotes the transformation of customer supply chain from cost-based to value-based and becomes the key to corecompetitiveness. At present, the Company has exported scientific and technological services and overall supply chain solutions inFMCG, shoes and apparel, cosmetics, 3C, home furnishing, auto parts and other industries, which truly contributes to industrialupgrading and high-quality development.
SF Holding is also a smart logistics operator with network scale advantages, boasting an operating model with strongmanagement and control over the whole network by leveraging on its powerful information system and efficient integration ofmultiple networks and business segments. All business segments and branches of SF Holding come under the unified control andmanagement of its headquarters. The headquarters organizes pick-up, delivery, distributed processing and transit transportation in aunified way within its business scope, and independently allocates network resources based on its actual needs for businessdevelopment. Also, the Company uses a wide range of information technologies to guarantee the implementation of unified standardsin the entire network, and establishes several industry-leading business information systems to guarantee the overall operationalquality of the network. SF Holding has a gigantic logistics network at home and abroad, including an “aviation network” consistingof all-cargo aircraft, commercial flight and drones; a “ground network” consisting of operating service points, transit and distributionservice points, land transportation networks, customer hotline networks, and last mile networks; and an “information network”consisting of various types of big data, block-chain, cloud computing, machine learning and planning optimization, smart logisticsmap, Internet of Things (IoT) and so on. The three networks are integrated into one “aviation + ground + information” network. ThisSF network is a comprehensive logistics network system with the most powerful network control, the highest stability, and the mostunique resources in the industry domestically.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(III) Overall performance of the Company during the first half of 2021
1. Overall financial performance
Over its 28 years of development, SF Holding has upheld long-termism, and has built a solid network foundation and excellentservice capabilities by adhering to a forward-looking and leading-edge strategic layout around its corporate vision and mission.Especially when emergencies such as the pandemic occured, it has demonstrated strong network operation and risk resistance,providing a strong guarantee for the normal production and operation of the society and residents' lives. Under the recurring globalpandemic and China's entry into the "new normal" of fighting against pandemic, key changes are taking place in the domestic andinternational environment, macroeconomic landscape, industrial development and industry trends. Our future national industries willbe developed towards promoting the new development pattern of“dual circulation", strengthening the competitive advantage ofnational industry chain, accelerating the high-quality development of manufacturing and service industry, building a digital supplychain and improving the overall quality and level of industry chain. The express logistics industry, as the core carrier that connectsthe upstream and downstream of the industry chain and merchants and consumers, is undergoing a historic and critical period forindustrial upgrading.With a deep understanding of the industry development trend and maintaining its strategic direction, the Company has been wellpoised for historical opportunities. 2021 is a key year for the Company to build on past successes to further advance our cause. TheCompany insists on expanding diversified business markets of express delivery, freight, cold chain, intra-city, international andsupply chain to build comprehensive service strength and long-term core competitiveness, solidify the new growth curve andmaintain long-term and sustainable development. In the first half of 2021, the Company recorded 5.13 billion shipments for itsexpress & logistics service, achieving year-on-year growth of 40.4% and a two-year average growth of 59.5%, higher than theindustry's two-year average growth rate of 33.4%, despite the high base of shipments that benefited from the outbreak of demand foranti-pandemic emergency delivery in the same period last year. Meanwhile, relying on its integrated logistics service capabilitiescovering various industries and application scenarios, the Company penetrated into all aspects of the customer's supply chain andserved the digital transformation of the industry chain and supply chain by providing data technology service solutions for variousindustries with its rich practical experience in logistics scenarios and based on leading technology and hardware and software systemintegration capabilities.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
The Company’s key financial indicators are shown in the table below:
| Item | Indicator | Current reporting period | The same period for previous year | Increase/decrease over the same period for previous year |
| Shipment | Shipments of express logistic business note 1 (RMB billion) | 5.131 | 3.655 | 40.37% |
| Average revenue per shipment of express logistic business note 1 (RMB) | 15.94 | 18.39 | -13.32% | |
| Item | Indicator | Current reporting period | The same period for previous year | Increase/decrease over the same period for previous year |
| Income statement | Revenue (RMB billion) | 88.344 | 71.129 | 24.20% |
| Net profit attributable to shareholders of the parent company (RMB billion) | 0.760 | 3.762 | -79.80% | |
| Net profit attributable to shareholders of the parent company after deducting non-recurring profit or loss (RMB billion) | -0.477 | 3.445 | -113.85% | |
| Weighted average return on net assets | 1.34% | 8.51% | A decrease of 7.17 percentage points | |
| Earnings per share (RMB/share) | 0.17 | 0.85 | -80.00% | |
| Item | Indicator | End of current reporting period | End of previous year | Increase/decrease over previous year end |
| Balance sheet | Total assets (RMB billion) | 133.393 | 111.160 | 20.00% |
| Total equity attributable to shareholders of the parent company (RMB billion) | 56.681 | 56.443 | 0.42% | |
| Debt to asset ratio | 57.04% | 48.94% | An increase of 8.10 percentage points |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
RMB-0.477 billion, representing a year-on-year decline of 113.85%, of which, RMB-1.134 billion was from the first quarter andRMB0.657 billion was from the second quarter. The non-recurring profit or loss
Note 3in the first half of 2021 mainly represented thegain on disposal of the Company’s interest in three property assets located in Foshan, Wuhu and Hong Kong to SF REIT, andgovernment grants, etc.Note 3: For details, please refer to “VI Non-Recurring Profit or Loss”under Chapter 2 “Company Profile and Key Financial Indicators”.Due to the strong demand for delivery of emergency epidemic prevention supplies during the pandemic last year and theincreasing demand for delivery resulting from the rapid increase of online consumption penetration in the post-pandemic era, theCompany has continuously improved its product matrix and vigorously explored new markets, leading to a rapid expansion ofbusiness scale and a significant growth in business volume of 68.46% in 2020. In the first half of this year,the Company stillmaintained a good growth momentum and achieved a growth in business volume of 40.37% on the basis of the high base of the sameperiod for previous year, further expanding the network business volume. However, the pandemic in last year also disrupted theCompany's normal schedule of network expansion, coupled with the delay of investment in capital expenditure and the surge inbusiness volume, resulting in significant capacity bottlenecks in many parts of the express delivery network during the peak season inthe fourth quarter of last year, affecting network operation efficiency.In order to enhance the network processing capacity and guarantee the timeliness and service stability, as well as based on theCompany's development direction of grasping the historical opportunities in the industry, continuously enhancing the comprehensivelogistics service capacity and creating digital supply chain solutions, the Company has accelerated the network development ofdiversified business segments, and invested additional resources in transit sites and automation equipment, transportation capacity intrunk and branch routes, etc. since the fourth quarter of last year and up to this year, so as to consolidate its operation infrastructure,improve its processing capacity and efficiency, resolve the capacity bottleneck caused by slow investment in the early stage, andsupport the rapid development of its businesses in the long run. The concentration of costs and expenses resulted from such resourceinvestment has led to the pressure on the Company's profit in the first half of this year. At the same time, in response to the policy notto return to hometown during Spring Festival holiday in the first quarter of this year, the Company has given adequate care andincentive to the staff left on duty, and thus the number of staff on duty during the Spring Festival such as collectors, warehousemenand transit operators and salary costs increased significantly, which also brought temporary one-off impact on the Company'sprofitability. In addition, the economy express products of the Company which mainly serve in the main e-commerce market hasrecorded faster growth; however, such growth has an impact on the overall gross margin level to a certain extent because of the lowpricing of products of this segment.Net profit after deducting non-recurring profit or loss in the second quarter of 2021 increased by approximately RMB1.791billion as compared with the first quarter, and the performance achieved quarter on quarter improvement, which was because duringthe reporting period, the Company has also continued to review the resource allocation of each business line, strengthened theresource integration and optimization of the sites and routes of the express network, freight network, warehousing network andfranchise network, and continued to carry out the upgrading and transformation of automation equipment in transit fields, whichgradually alleviated the capacity bottleneck and caused the resource utilization rate, operation efficiency and other indicators in thesecond quarter to steadily increase as compared with the first quarter. At the same time, the Company continued to strengthen refinedcost control to facilitate dilution of fixed asset costs along with the growth of business volume, realizing the scale effect. At the sametime, benefiting from the Company’s continued investment in digital, intelligent and visualization technology to help streamline theorganization and raise management efficiency, the costs continued to decline.
According to the segment report
note 4
, the Company generated a total profit of RMB1.093 billion in the first half of 2021, of
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
which the express segment accounted for a total profit of RMB1.514 billion, representing a decrease as compared with that ofcorresponding period of last year. As disclosed above, such decrease was attributable to the cost increased rapidly due to the overallnetwork resources were concentrated on increasing investment this year, as well as the gross margin under pressure due to the rapidincrease in proportion of the economical courier product business with relatively low price. The total loss of the Freight segment wasRMB0.508 billion, which was mainly attributable to the Company’s promotion of the four networks integration, acceleration ofexpress network construction, and enhancement of the transportation capacity of main and branch lines and improvement of theefficiency of land transportation. Other segments recorded a total profit of RMB0.076 billion, which was due to, on one hand, thenew businesses in the growth period did not make profit contribution as a result of the continued expansion in new business marketsby the Company, and on other hand, the transfer of interests in three property assets that located in Foshan, Wuhu and Hong Kong toSF Real Estate Investment Trust by the Company for a lump-sum disposal gains
note 3.The above investment will exert pressure on the profitability of the Company in the short term, but in the long term, it will assistthe Company in further consolidating the service capability of diversified business that centered on the logistics supply chain ecology,and accumulating massive data and practical experience in more industries and scenarios. Combined with our technology that assistscustomers in digital supply chain transformation, the Company will truly become an independent third-party industry solutions datatechnology service company.
Unit: RMB billion
| Item | Express segment | Freight segment | Others | Inter-segment elimination | Total |
| Revenue from external customers | 66.505 | 13.399 | 8.440 | - | 88.344 |
| Inter-segment revenue | 5.275 | 1.156 | 5.243 | -11.675 | - |
| Total profit/(loss) | 1.514 | -0.508 | 0.076 | 0.011 | 1.093 |
| Income tax expenses | 0.536 | 0.073 | 0.066 | 0.003 | 0.677 |
| Net profit/(loss) | 0.978 | -0.580 | 0.011 | 0.008 | 0.416 |
| Gross profit margin | 12.05% | 1.25% | 7.74% | / | 10.10% |
| Net profit margin | 1.36% | -3.99% | 0.08% | / | 0.47% |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
maintenance projects, and supplement of working capital. The proposal was approved by the Issuance Review Committee of CSRCin May 31 of this year. Upon obtaining the official approval, the Company will make issuance at an appropriate time and raise notmore than RMB20 billion. At that time, the debt ratio of the Company will be further reduced, and the financial situation will remainstable.
2. We have adopted a proactive marketing strategy covering both deep-dive and new expansion, continuouslyimproving customer experience and loyality
In 2021, the Company has continued to focus on industry characteristics, focusing on contextualisation, digitisation and furtherrefinement, digging deeper into customer requirements, and continuing to improve its ability to serve its customers as well as thecustomer experience, and increase customer loyalty. In addition, the Company starts from the application scenarios of customers todrill into their requirements for different use cases within the end-to-end whole process, so as to optimizes the product mix, refineproduct and service standards and enable the development of the solution capability. Meanwhile, it continues to optimize operationmodel and enhance resource efficiency, providing customers with cost-effective services and assisting customers in cost reductionand efficiency improvement, therefore ensuring the steady and healthy growth of our customers and our businesses.
Credit account customers: In the first half of 2021, based on the guiding principle of deepening customer scenarios,broadening business fields and expanding business scope, the Company adhered to a management model oriented by customerstratification, industry perspectives and scenario classification, and realised reasonable and differentiated pricing of services based ondifferent characteristics and needs of customers. Also, relying on the big data platform and smart domain system of SF Technology,the Company achieved the process-wide visualization, traceability and verification of customer cooperation data, improved the flatcustomer demand solution channel, and responded to and addressed customers’ demands in a timely manner. According to thescenarios of customer logistics supply chain in different industries, the Company deeply engaged in the upstream and downstream of
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
customers’ industry chains, and made logistics product portfolios cross-selling to comprehensively improve cooperation loyalty ofcustomers, and therefore further improving our industrial solution capability.
As of the end of the reporting period, the number of active credit account customers had reached 1.55 million. In the first half of2021, revenue from credit account customers recorded year-on-year growth of over 32%, with an increase of 23% in customers withmonthly sales in excess of RMB10,000. The proportion of customers with monthly sales at the RMB1 million level has alsogradually increased, while the portion of customers in the e-commerce field has steadily increased, and the customer structure hascontinued to optimise.Retail customers: In the first half of 2021, the Company expanded the retail business for time-defined products and extendedonline shopping product returns business. In addition, by virtue of science and technology intelligence platform, based on theintelligent big data unit area, the Company further explored the consumer demand scenarios and launched targeted special servicessuch as family express delivery, charity express delivery and enterprise employee benefits. By constantly iterating new businessmodels, the Company met the delivery needs of users in social, charity, shopping, business travel, entertainment, medical and otherscenarios. In terms of offline channels, the Company set up the operation and management system of third-party co-distributionservice providers, and adopts scientific models of courier and channel delivery, so as to strengthen channel operation andmanagement and improve service precision. At the same time, with the help of continuous iteration of digital intelligent tools, theCompany supported the accurate investment of resources on the front line of business. In terms of online channels, throughcontinuous innovation and optimization, the automated operation system based on the whole life cycle of users has been improved.As of the end of the reporting period, individual member numbers had reached 439 million, representing an increase of 15.5%compared to the end of 2020. There were over 100 million online monthly active users, and the active users on SF Express APPpresented a year-on-year growth of exceeding 100%.
3. Improving the collaboration of the four networks, optimising the network-based operating model, and drivingintegration of resources and capacity
In the first half of 2021, centering on the development direction of enhancing comprehensive logistics service capacity andbuilding digital supply chain solutions, the Company further enhanced the investment in system intelligent construction andautomation equipment, continued to deepen the resource integration among diverse business segments and optimised theprocess-whole operation model. Through intensive cost management, the Company continued to release resources and productioncapacity, promoted the synchronous improvement of operation effectiveness, efficiency and quality, thereby consolidating our corecompetitiveness.Network integration：In the first half of the year, the Company fully launched the four-network integration in more than 100cities across China, which strengthened the integration and optimization of the site and route resources of our express network,freight network, warehousing network and franchise network, and promoted cost optimization and timeliness improvementthrough duplicated network convergence. As of the end of the reporting period, most of oversize express delivery in the expressdelivery network has been integrated into the freight delivery network for processing, and about 1,200 trunk routes has beenoptimized and integrated, accounting for about 5% of the trunk routes. There is still room for further integration in the future. Whileimproving the operation efficiency of the automated transit for traditional small parcel express, the timeliness of freight networkservices mainly for large parcel has also been significantly improved by increasing the frequency of and straightening the trunkroutes, and the life time of the whole process of large parcel has been shortened to 42 hours. The consolidation of foundation
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
capability and the promotion of production capacity brought by the four-network integration will further lay an efficient operationfoundation for the business peak in the second half of the year. Intelligent construction of the system: We will continue tostrengthen the intelligent construction and application of the operation system, such as smart transportation platform and aviationresources management system, through further intelligent and accurate resource allocation, which not only effectively integratesmultiple resources, but also highlights the scale effect to achieve the double improvement of quality and efficiency. Investment inautomation equipment: We will continue to carry out the upgrade and transformation of the automation equipment in transit fields,and at the same time, combine the fast and slow separation and sub-sorting to further release part of the transit capacity. As of the endof the reporting period, a total of 33 sets of automated sorting machine for small parcel and 306 sets of sorting machine for singledelivery items were put into use in the first half of the year, and the processing efficiency of transit operators increased 16.95%year-on-year. In the second half of the year, we will continue to promote the construction of transit sites in the same area of the parkand increase the investment in small and large automation equipment to further enhance the overall production capacity of thenetwork and meet the business peak. Model optimization: We will continue to optimize the operating model of the whole linkthrough the continued promotion of containerized transport, regional direct distribution and shipping, direct delivery at transit depotsand other models, which have effectively reduced pressure on the allocation and warehouse management links. As of the end of thereporting period, the efficiency of warehouse management increased 28.65% year-on-year. Cost refined management: Dependingon the solid digital technology infrastructure, the Company has continuously strengthened the refined investment and control of thewhole link cost of receiving, transferring, transporting and dispatching, built a system model to monitor the rationality of resourceinvestment, and promoted the improvement of resource utilization and operation efficiency.Beneficial from the above measures, the network operation efficiency of each business segment of the Company has beenimproved. With the continuous growth of business volume, the efficiency of resource use has been gradually improved compared tothe corresponding period of last year. However, the overall network optimization, especially the integration construction of transitfields, needs to be carried out gradually, and there is still much room for improvement in efficiency and benefit brought byautomation equipment investment and routes integration. In the future, the Company will also strengthen the refined managementand control of the costs of each operation link, improve the matching degree of resource investment, and ensure the high growth ofbusiness while achieving more reasonable returns of benefits.
4. Continuously optimising product segmentation and product matrix, capturing growth momentum by fulfillingdivsified needs of our customersSF has always been adhering to the product design philosophy of “user-centric, demand-driven and experience-based”, andcontinuously providing customers with high-quality service experience. Based on the change in market environment and diverseneeds of customers, SF constantly improves the product and service system.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(1) Express
Time-definite Express: As the pioneer of time-definite express in the express delivery industry, the Company continued tocultivate medium and high-end express market. In the first half of this year, the Company completed the optimization and upgrade oftime-definite products system, expanded the moat, and consolidated the pioneering advantages of time-definite express, whileenriching and improving product matrix in order to meet diverse needs of customers. The time-definite products after optimizationand upgrade mainly included SF Same Day Delivery, SF Speedy Express and SF Standard Express. SF Same Day Delivery providescustomers with high efficient delivery service of same-day mailing and same-day delivery. As of the first half of the year, this servicehas covered 191 cities, and will continue to expand its service scope. SF Speedy Express is committed to provide customers withdelivery service that is “fast, punctual and stable” and has covered more than 90,000 flow directions across China. Second daydelivery can be achieved in most main urban areas, and the next morning delivery can be achieved in some cities. The newgeneration of SF Standard Express provides customers with delivery service of "better prices, stable timeliness, and worry-freeconsignment". It is still a product with leading timeliness and cost-effectiveness, with service covering all over the country andcollaborating with multiple transport capacity to meet the diverse needs of delivery. Of these, based on the consistency of servicetimeliness standard, pricing standard and operation standard, the standard land transport products originally belonging to theeconomic express segment are simultaneously upgraded int the new generation of SF Standard Express product.Therefore, during the report period, according to the new statistics caliber after product optimization and upgrade and thesynchronously retrospective data of the same period last year, the Company’s time-definite express business of recorded atax-exclusive revenue of RMB46.161 billion in the first half of 2021, representing a year-on-year increase of 6.50%. The slowdownin growth was mainly due to the strong demand for emergency delivery during the epidemic period last year, resulting in a large
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
increment of time-definite express business, and a high year-on-year base. In the future, time-definite express service will grasp theincrease in online shopping penetration rate and the opportunities of transformation and upgrading of the manufacturing industry,aiming at high-end e-commerce consumption and manufacturing sectors. With the establishment of future cargo airport hubs, we willcontinue to improve the time efficiency of inter-delivery between key cities, improve the efficiency of aviation resources andstrengthen the coordination of the air-ground model, so as to further enhance the delivery capacity and stability, and stabilize thehigh-end market share.Economy express: Regarding to the market strategy of the economic express sector, SF gradually implemented the "twobrands" strategy. According to the different needs of customers, we provide E-commerce Standard Express/SF Economy Expressproducts for the e-commerce market above the average level, and Fengwang Express products for customers to choose, which areoperated in franchise mode and serve the sinking e-commerce market. As a new e-commerce flagship product of SF Holding’sself-operation, the timeliness of E-commerce Standard Express got fully improved. Compared with SF Economy Express, 83% ofthe standard route timeliness of E-commerce Standard Express got faster by one day, and it also provides door-to-door service,demonstrating the brand concept of "speed + warmth" of SF. SF Economy Express product remained positioning itself in route fillingwith timeliness and price slightly lower than E-commerce Standard Express, but still equipped with door-to-door service. At the sametime, the Company was also gradually optimizing its customer structure, directing high-quality customers to upgrade to E-commerceStandard Express product, and it will also manage and control the resouces allocation during the peak period to ensure that thecorresponding resource and cost input are more matched with the products positioning, so as to increase the product profitability.Fengwang Express is an independent brand of our Company for franchise-based express developing in the e-commerce market inlower-tier cities and focused on the construction of network capacity and independent service system in the first half of 2021 bybuilding a franchisee network at both the collecting and dispatching ends and fully leveraging on the advantages of integration withSF Express in the transit and transportation links, as well as expanding its own network based on the effective use of marginalcapacity.According to the new caliber statistics after product optimization and upgrading and synchronously retrospecting the data of thesame period last year, the Company's economy express business achieved revenue after tax of RMB14.890 billion in the first half of2021, an increase of 69.16% year-on-year, representing the strong growth trend continued with a year-on-year growth rate above theindustry level and an increasing market share of e-commerce.
(2) Freight
The less-than-truck-load industry is a trillion-dollar market, which is in the stage of scale and accelerated industry consolidation.Unlike the highly concentrated and seemingly highly standardised and scaled express delivery industry, concentration in theless-than-truck-load industry is still relatively low, offering major potential for market development and integration. With theupgrading of industry and consumption, the demand for logistics supply chain is gradually flattening and flexibilizing, andsmall-batch, high-frequency and fragmented orders has increased significantly. Meanwhile, as channels becoming diversified, smalland medium-sized enterprises are also gradually entering into domestic and international markets, covering more remote customers,resulting a wider logistics network coverage and higher cost performance. To C consumer supply chain is accelerating thetransformation of consumption patterns with the normalization of the epidemic prevention which leading to a more fragmented,flexible and diversified logistics services demand, while the demand in To B industry supply chain market is going toward high-endand integrated due to the supply-side structural reform. In addition, with the reconstruction of regional industrial structure,
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
development of community group purchase and the growing export trading due to the epidemic, metropolitan freight andcross-border logistics market also ushered in development opportunities.Based on the changes in market and customer demand, SF Freight(顺丰快运), leveraging on the Group's brand and networkadvantages, continues to increase resource investment to improve the timeliness of large-scale parcel and service consistently. It alsoexpanded its services to To C large-scale parcel delivery, To B small-batch allocation, large-batch transfer and full-truck-loadtransportation through SF Freight directly operated network, SX Freight(顺心捷达) franchise network and flexible resourcecooperation mode, and the standard express product service system achieved full coverage from small to large, from high-end toaffordable. The directly operated network provides high-end products and personalized extension services on the ends, while SXFreight builds a strengthened middle business service network based on franchise model to provide customers with timely, stablequality and cost-effective product services. The resource cooperation model provides point-to-point direct delivery with lower costcatering for the demand for supply chain services that emphasizing direct delivery than relying on network. At the same time, wecontinue to strengthen the terminal To C to home delivery and other extended services, To B large parcel fulfillment and warehousingservices to build a relative shaped terminal differentiated/personalized service system, providing customers with a morecomprehensive and high-quality service experience, so as to further consolidate the barriers in terminal service. As of the end of June2021, the orders of SF Freight one-stop home delivery service increased by over 400% year-on-year with the service timeliness rateof 99.29%, and the service products increased by 45% year-on-year. In addition, SF Freight continued improving its servicecapabilities in metropolitan freight and cross-border logistics, and constructed a product service matrix covering the whole process oflarge-scale parcel logistics in diversified scenarios.The unswerving technology-based operation model is the core foundation for the growth of SF Freight . By applying innovativetechnology tools and system, the all-round intelligent technology relating to collecting, transferring, transporting and dispatchinghelps to reduce cost and increase efficiency and ultimiately build our core competitiveness. The investment in SF Freight transitequipment has increased by over 300% as compared to last year, including six-sided scanners, pendulum wheel automatic sorting,module belt automatic sorting, intelligent sorting carts, Shentong monitoring (神瞳监控), etc. During the shopping festival of "618"this year, the peak volume and the processed volume increased by 36% and 325% year-on-year respectively, while the operatingefficiency improved by 12% and the customer satisfaction reached 98.96%. As of June 2021, SF Freight’s self-operated and franchisenetwork comprised a total of 192 transit depots and collection and dispatch points and over 1,600collection and delivery points with atotal surface area of more than 3.9 million square meters, and daily loading capacity of 233,000 tonnes. We operate 3,292 trunkroutes, over 11,000 branch routes, a network of 12,355 franchise outlets, and provide business coverage across 32 provinces and 365major cities and areas nationwide.The effective integration between freight network and express network, directly operated network and franchise network willhelp reduce costs and increase efficiency and improve operational management efficiency. The integration of the operation planningand in-process control and management of each network, on the one hand, effectively improves management and schedulingefficiency, and on the other hand, realizes the centralized operation of large-size business in the SF Freight system. While the coststructure is optimized, the delivery time of large-size items is obviously accelerated, and the customer service experience is furtherimproved. At the same time, the collaboration between SF Freight and SX Freight in terms of management, venue routes andtechnology is becoming more mature. Through the unified management of theintermediate platform, the integration of vehicle linesand venues, the operation efficiency and timeliness are rapidly improved, and the cost is continuously optimized. The mutualempowerment and coordinated development of direct operation and franchise are realized, which will bring greater impetus to thedevelopment of SF Freight' business. In 2020, the cumulative cargo volume of directly operated network and franchise freight
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
network has exceeded ten million tonnes.In 2019 and 2020, a revenue from SF Freight’s less-than-truck-load has been ranked first in China's LTL industry for twoconsecutive years. While achieving scale growth, SF Freight has also won a good customer reputation with its leading timeliness andhigh-quality service, along with the continuous improvement of awareness and influence. In the first half of 2021, the freightproducts of the Company generated an external overall revenue of RMB11.513 billion and year-on-year growth of 50.01%. OverallLTL cargo volume recorded year-on-year growth of 81.3%, cargo volume of directly operated network recorded year-on-year growthof 88.7% , and cargo volume of franchise network recorded year-on-year growth of 62.5%. Our revenue scale and business growthrate remained at the top of the full-network LTL market players.
(3) Cold Chain and Pharmaceuticals
Food cold chain: According to experts from the Cold Chain Logistics Professional Committee of China Federation of Logisticsand Purchasing, China's cold chain logistics market will grow by 15%, the scale of the market will exceed RMB440.6 billion and thetotal cold chain demand will increase to 305 million tonnes in 2021. With the rapid growth of fresh food retail and the recovery of thecatering industry, the scale of the cold chain logistics market has expanded rapidly. At the same time, under the “new normal” ofepidemic prevention and control, the government continues to strengthen the supervision of the food cold chain industry. As variousnational macro policies being launched successively, the cold chain industry has entered a new historical stage, and the small,scattered, and disorderd pattern of cold chain logistics has been improved. In 2020, the top 100 cold chain enterprises accounted for18% of the total revenue in the industry, and the industry concentration has further improved. However, due to the high threshold ofcold chain infrastructure construction, the penetration rate of cold chain logistics is still low, and the circulation of agriculturalproduct related to cold chain transportation is much lower than 80%-90% of developed countries such as Europe, America andJapan.
Meanwhile, as consumer perceptions and purchasing behaviors evolve, fresh food channels are demonstrating certain changes.New e-commerce, new catering and new retail are rising, resulting in the further deepening of channel sinking with the gradualshrinking of traditional channels. Therefore, the change of new mode is accelerated under the boost of information technology. As thefood consumption upgrade has fueled structural changes in the food supply chain, thus the market’s demand for cold chainnetworking is booming. SF Cold Chain focuses on a network-based comprehensive cold chain service provider covering the wholecountry, which enables it toseize the historical opportunity in the new development period of the cold chain industry.
SF Cold Chain products are designed with cold storage as the center, relying on the express network to create three cold chaincapabilities (warehousing network, trunk network and terminal city delivery network) and build a cold chain ecological platform,with a view to provide industry customers with a full supply chain scene service and cooperation. As of the end of the reportingperiod, SF Cold Chain has 35 food cold-storage facilities (excluding the cold-storage facilities of New Havi) with a total area of201,000 square meters, covering 5 temperature zones for customers to make personalized choices; 159 food trunk routes, over 23,000deployable refrigerated trucks, and over 200 sets of customized packaging solutions, serving 193 cities, opening 3,619 flowdirections, covering 1,052 districts and counties, and has drawed a SF Cold Chain network map covering the whole country. TheCompany continues to innovate and reform in the cold chain "warehouse + delivery", and has been committed to providingcustomers with comprehensive cold chain logistics solutions, which has won the Company’s recognition from many leadingcustomers in the industry. Up to now, SF Holding has cooperated with major customers in the ice cream industry, yogurt industry,poultry industry and frozen pastry industry in the whole supply chain scenario, and has built supply chain solutions for sub-industries,
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
with the ability of smart cold chain supply chain service.In addition, in the field of fresh agricultural products delivery, SF Holding continues to boost the upward trend of agriculturalproduct. SF Holding actively responds to the rural revitalization call of governments at all levels, continues to increase theinvestment of 30 million special funds, and expands the scope of rural revitalization to all 832 state-level poverty-stricken countiesand more than 240 provincial-level poverty-stricken counties that had been lifted out of poverty; SF Holding also cooperates with thegovernment and associations of the production area to boost the upward trend of agricultural product. Meanwhile, SF Holdingcooperates with the government to build regional brands to help the development of brands of important agricultural products, suchas litchi, cherry and waxberry. As a service provider to help the development of agricultural specialty products, SF Holding continuesto improve its logistics network, timeliness, packaging and preservation technology and other professional capabilities on the basis offocusing on the entire industry chain. SF Holding is committed to providing users with more efficient and satisfactory services byincreasing the investment of special aircraft/bulk aviation/land transportation resources, introducing new equipment such as mobilesorting vehicles, and deepening the transformation of mode,such as compartmentalised warehousing + on-site distribution, so as tocontinuously improve the timeliness and quality and reduce customers' comprehensive logistics costs.As one of the top 100 enterprises in China's cold chain industry, SF Cold Chain has responded to the call of the government andhas repeatedly become the industry standard setter. Since August 2020, SF Holding has participated in the preparation of certainstandards, such as "Specification for Cold-chain Logistics Service"（《冷链快递服务规范》） led by State Post Bureau, "GeneralRequirements for Air-ground Multimodal Transport for Cold Chain Cargo "（《冷链货物空陆联运通用要求》） led by ChinaAcademy of Transportation Sciences, "Operation Specification of Cold-chain Logistics for Live Seafood"（《活体海产品冷链物流作业规范》）, "Packaging, Transport and Storage for Chilled and Frozen Foods in Logistics"（《冷藏、冷冻食品的物流包装、运输、仓储》）, “Code for Temperature Monitoring of Food Cold Storage”（《食品冷库温度监测规程》）and “Operation Specification forTerminal Distribution Cold Chain of Food”（《食品冷链末端配送作业规范》）led by CCLC, and continues to lead the developmentof domestic cold chain logistics industry. In June 2021, the Cold Chain Logistics Professional Committee of China Federation ofLogistics and Purchasing released the "2020 China Top 100 Cold Chain Logistics List", and SF Cold Chain ranked first for threeconsecutive years.
Pharmaceutical logistics： In the first half of 2021, with the deepening of China’s pharmaceutical reform, internet clinic,online settlement for medical insurance and other pilot work has been promoted. Due to the prevention and control of normalizationof COVID-19 and changes of consumers’ habits, more and more pharmaceuticals sales channel has been shifted from offline to retailand online, and the transportation of pharmaceuticals has gradually showing the characteristics of small-batch, high-frequency andhome delivery, therefore putting forward higher requirements to the supply chain service capacity, quality and safety, emergencyresponse capacity and the expansion of service coverage of socialized pharmaceutical logistics enterprises,.SF pharmaceutical continued to strengthen its development of pharmaceutical warehouse network and service network. As ofthe end of the reporting period, SF Pharmaceutical’s network covered 240 prefecture-level cities and 2,068 districts and counties, andoperated 12 pharmaceutical warehouses (11 GSP-certified pharmaceutical facilities and 1 bespoke warehouses) with a total area ofapproximately 170,000 square meters. Besides, SF Pharmaceutical was equipped with 292 self-owned refrigerated trucks(GSP-validated) , with 50 pharmaceutical transportation trunk routing link hub cities nationwide, providing customers with aprofessional, safe, process-wide controllable end-to-end pharmaceutical logistics supply chain solutions and services. Relying on itsown logistics network, technology foundation and leadership experience in intensive resource management, SF Pharmaceutical hastake the leading position in the pharmaceutical third-party logistics industry.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
With the business philosophy of "Delivering Health to the Public", SF Pharmaceutical managed to cover various fields such aspharmaceutical manufacturers, vaccine makers, medical equipment, distributors, disease control centres and hospitals at all levels,hospitals, chain store pharmacies, pharmaceutical e-commerce and other businesses. In 2021, SF Pharmaceutical passed theassessment from Pharmaceutical Logistics under China Federation of Logistics and Purchasing (中国物流与采购联合会医药物流分会) and became an official member of the Vaccine Transport Guarantee Working Group. Since the first service provided, it hassafely delivery of an aggregate of 180 million doses of COVID-19 vaccines. In terms of the cold chain transportation for biologicalsamples, IVD reagents, insulin, etc. and smart pharmaceutical logistics, SF Pharmaceutical can provide industry-leadingpharmaceutical cold chain packaging, integrated IoT Polar platform (ie. temperature and humidity, GPS routing and othervisualization and surveillance) to realize precise control for different temperature zones in the range from -80°C to 25°C, and carryout instant O2O cold chain delivery, constant temperature transportation of 24-168 hours for medium to long distance, as well assupporting temperature data output and on-site printing to cope with the increasingly diverse market demands of pharmaceuticalcompanies and medical institutions. Meanwhile, SF Pharmaceutical cooperates with major Chinese Web hospitals and DTPpharmacies to solve the “last mile” service through technology-based solutions, realizing intra-city instant delivery capacity andmedicine cabinet delivery. Leverages SF’s early investment in technology, SF Pharmaceutical has empowered its pharmaceuticalcustomers with industry-leading warehousing and distribution logistics information systems, full visualisation and monitoringplatforms, digital supply chain service capabilities and algorithmic capabilities (such as technological warehouse network planning),in order to reach in-depth strategic cooperation with its customers and tap into information, intelligence and digital development.In the first half of 2021, the Company’s revenue generated from the cold chain and pharmaceutical business (including coldchain of food and pharmaceutical logistics) amounted to RMB3.720 billion, representing a year-on-year increase of 14.79%.
(4) Intra-city instant delivery business
The local consumption market has realized rapid development with the prosperous development of macro-economy, vigorouslower-tier markets and continuously upgraded resident consumption demands. Driven by the renovation of internet technology, newconsumption forms and business models have continuously emerged, and multiple private traffic flows such as applet, live broadcastand short video, and self-owned online channels of merchants have been increasingly active, which has further stimulated thediversified development of local consumption service scenarios and formation of instant consumption habits of residents, andspawned a vast range of demands for instant delivery services. Thanks to the open and inclusive distribution network andprofessional solutions, independent third-party real-time delivery service providers will further give play to its core infrastructurefunction in new consumption with great prospects of future development.
Featuring the development concept of “high quality, high efficiency and full scenario”, SF Intra-city has become the largestindependent third-party real-time distribution service platform in China with an open ecosystem. S.F. Intra-city has providedlarge-scale, customized and all-weather infrastructure support for merchants of new business forms and operators of private trafficflows by continuously optimizing the service matrix and proactively expanding channel partners such as social media, e-commerceplatforms, SaaS service providers and logistics service providers. It has realized its nationwide network coverage in more than 1,000counties and cities, and cooperated with over 2,000 merchants’ brands, serving in excess of 500 thousand merchants and 100 millionindividual users, and realizing full coverage in business circles and 24h all-weather service in more cities, in order to create abeautiful life of more people with instant service.
Based on the deep understanding of the new consumption trend in local life, S.F. Intra-city has initiated the multi-scenario
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
business model in the industry, improved and consolidated its service system covering catering, fresh fruits and vegetables, cakes andflowers, 3C digital, apparel, cosmetics, personal errand, life service, corporate service and last mile delivery. The extensive coverageof multiple scenarios has contributed to the rapid growth of order quantity, and healthy and diversified order structure of S.F.Intra-city, and stimulated the improvement in both business scale and efficiency through network effect and scale effect.S.F. Intra-city has been fine-tuning industrial solutions, lean technology and digital operation capability following thecustomer-oriented principle. On one hand, it has focused on the real-time logistics demands and pain points of customers in differentsub-sectors and produced bespoke and diversified solutions through in-depth data analysis on industrial characteristics andperformance, in order to help merchants, set up good brand images among consumers and display the competitive advantages ofdifferentiated service. On the other hand, centered on the intelligent real-time logistics system based on AI and big data technology, ithas created the optimal intelligent dispatch, pricing and routine planning, conducted capacity estimation, task planning, cost planningand performance monitoring, and realized organic allocation of shopfront, commercial area and city-wide capacity. We manage tomaintain the fluctuation of time-sensitive rate at 3.5% and 2.5% even in adverse weather and peak hours of holidays, in order tocreate first-class efficiency and high-quality service in the industry.
Much concerned about the eco-health of riders, S.F. Intra-city have established a comprehensive training system to improve andexpand their professional skills and promote the development of their individual capabilities. S.F. Intra-city offer 24h online serviceto solve relevant problems at work and continuously optimize the experience of riders. We have also cooperated with SF CharityFoundation to launch the “Million Riders Care Program”, with an aim of providing educational support for riders’ children and offeraids to riders’ families in terms of medical demands. S.F. Intra-city aim to create friendly and sustainable working environment forriders and comprehensively enhance their satisfaction and loyalty through warm concern and continuous improvement in riders’safety and welfare.In the first half of 2021, tax-exclusive revenue from the Company’s intra-city instant delivery products amounted to RMB2.241billion, representing a year-on-year increase of 77.12%, much higher than the average growth rate of the industry.
(5) International business
SF International is committed to providing convenient and reliable logistics services, such as international express delivery,international e-commerce, international freight forwarding, international warehousing, goods consolidation and forwarding services,for domestic and foreign manufacturers, trading companies, cross-border e-commerce companies and consumers. In addition, we canprovide integrated and customized import/export supply chain solutions, including transportation, customs clearance, delivery,warehousing and system, based on our customers’ needs.
SF International’s courier business has continued to grow and it serves 78 nations and regions around the world. In the first halfof the current year, eight new routes were opened, including those from Thailand to Europe, from Mainland China to South Africa,and from Brazil to Mainland China. SF International’s e-commerce business covers 225 countries and regions around the world. Byexploring multi-faceted and in-depth cooperation with cross-border e-commerce platforms, e-commerce independent stations andtheir underlying service providers, relying on our self-operated international air transport resources, our own customs clearanceguarantee capability, overseas local service teams and logistics networks, we are developing cross-border e-commerce logisticsecosystem and helping domestic e-commerce companies to expand overseas while achieving stable growth of our own business.
SF International has continued to increase its basic transportation capacity and obtained a stable growth of its freight forwardingservices. It has dedicated to expand the international airline network and opened nine new international all-cargo aircraft routes
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
including those from Shenzhen to Los Angeles, from Shenzhen to Manila, and from Wuhan to Hanoi. In the first half of the year, ourall-cargo aircraft carried a total volume of approximately 80,000 tonnes on international routes. In respect of maritime transport, wehave improved our acquisition capacity of shipping space through directly cooperating with well-known shipping companies in theindustry to achieve stable growth of our export business from China to Europe and America. In respect to rail transport, we havesuccessfully launched a self-operated express line between Chengdu and Cologne through Xi’an, Chongqing and Wuhan freight trainplatforms to create SF International’s premium routes. Due to the impact of the COVID-19 pandemic, in many hospitals inneighboring India, there was a shortage in medical supplies such as oxygen generators. In June 2021, SF International undertook thetransportation of 15,000 sets of oxygen generators purchased from East China to India for an Indian company. All tasks of materialstransportation were completed efficiently in batches with self-operated stable air freight capacity and logistics solutions customizedfor its customers.SF International has continued to make breakthroughs in international supply chain solutions. Based on our overseas supplychain warehouses built in England, India, Thailand and so on, we have further formed a multi-spot layout of warehouse network inPhilippines and America, so as to strengthen our localized self-operation ability with the solutions of overseas warehousing anddistribution and help Chinese enterprises to expedite their overseas localized operation. As for the management of overseaswarehouses, we take the lead in passing the ISO9001, ISO14001 and ISO28001 international certification for self-operated overseaswarehouses in India in line with the international management standard. In addition, SF International has seized new opportunitiesbrought by the establishment of Hainan Free Trade Port, offering major international lines, intelligent warehouses and smart logisticstransportation services for cross-border e-commerce companies on the island and consumer good companies with free duty outside oron the island, and providing end-to-end, customized and digital intelligent bonded logistics solutions for domestic and foreigncompanies settling in Hainan.
During the first half of 2021, the revenue from the Company’s international express business amounted to RMB3.281 billion,representing a year-on-year increase of 12.94%.
(6) Supply Chain Business
Relying on a complete product matrix and its integrated logistics service capabilities in terms of express delivery, freight, coldchain, warehousing, intra-city instant delivery and international express delivery, combined with extensive and advanced experiencein supply chain of SF DSC (formerly named as “SF DHL”) and New Havi after M&A integration, SF Holding’s service covers allparts of the supply chain from procurement, production, circulation, sales and after-sales in various industries, providing customersend-to-end one-stop supply chain solutions with industry characteristics. Meanwhile, with the addition of industry-leading practicalability of logistics scenarios in advanced technology areas such as artificial intelligence (AI), robot, Internet of Things (IoT), logisticsmap and blockchain, SF Holding is focusing on technology to jointly reform traditional supply chain pattern with customers and topromote the digital, automation and intelligent transformation of customers’ supply chains. It takes a customer-centered approach toexactly predict their actual demands for guiding upfront procurement, production, storage and sales and then set up a supply chainsystem with timely response, efficiency and flexibility.
In the first half of 2021, SF Holding continued to explore with its head customers to create industry technology services basedon the concept of digitisation, standardisation and product focus. It provides big data products about decision-making withefficiency and accuracy of operational scenario improved by big data and algorithm, and smart supply chain products whichconnect the upstream and downstream of industry chain and achieve a visible supply chain in all processes, omni-channel inventory
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
system of “e-commerce shared inventory”, and efficient performance and delivery of orders, as well as online omni-channel toolsfor store operation and management for companies, whereby it assists brands and retailers to achieve direct traffic and usersconversion with data perception, analysis and operations and optimize marketing decision-making. Therefore, it can further drive thefront-end production and turnover speed of the supply chain; quickly meet customers’ needs. Leveraging on digitalization andintelligence, we can optimize and upgrade industry customers’ cost-generating supply chain into a new profit-making supply chain,and make new business growth with customers. At present, technology service solutions have been widely applied toindustry-leading customers involved in fast-moving retail, clothing, shoes and hats, 3C, home appliances, auto parts, liquor, medicineand finance sectors. We also offer whole-link D2C business chain solution covering from marketing and selling, commoditymanagement, forecasting and replenishment, fulfillment to smart stores. Only in the first half of this year the contract amount relatedto technology service has exceeded RMB100 million. In the future, learning from the solutions of industry benchmark for customers,we will build and constantly update the system of products, capabilities and services for “D2C SaaS + VAS” (standardizedapplication + value-added services), to help growing SMEs to gain new and sustainable business growth.
SF Holding has also continued to empower SF DSC and New Havi with technology as well as synergies within the network andresources, driving the digital transformation and upgrading and new business growth of them.
SF DSC has fully embraced these market changes. Based on the customer and industry knowledge accumulated over its 30 yearsof service experience and utilizing its self-developed modularized technological products as well as its capability to analyzecustomers’ supply chains and formulate solutions, it can formulate man-and-machine soft solutions for B2B2C scenarios on a flexiblebasis, and thus becomes a partner to customers’ supply chain transformation. Further, it also fosters benchmark customers inhigh-tech, fast-moving consumer good, automotive, household and other industries, aiming to continuously precipitate and iterateindustry supply chain solution products, and form a scale effect by expanding to other upstream and midstream customers in theindustry. At the same time, with the continuous development of " dual cycle " economic momentum, demand of domestic high-techindustry customers to go abroad and expand the global market has risen sharply. SF DSC proactively use its global vision andresource network to provide domestic customers with a " package " of solutions covering whole course, in a view to connectdomestic and international supply chains via high quality services and support the sustained and stable development of its overseasbusiness. In the first half of 2021, SF DSC achieved high dual-digit growth in revenue. Such a revenue growth rate is significantlyahead of the industry average, indicating that business potential continues to emerge.
New Havi is an integrated solution provider in the field of cold-chain logistics and supply chain, mainly serving for customers inthe catering and food industries. In the first half of 2021, the COVID-19 pandemic was rampant across the globe, which had animported impact on certain domestic areas. Catering and food industry still faced challenges. By constantly upholding a concept of"Healthy Development", New Havi actively enhanced its "Internal Capabilities" and improved the integration and synergy within SFGroup, in order to turn challenges into opportunities and achieve continued and stable progress in epidemic prevention and control,foundation construction and business development.
In terms of epidemic prevention and control, in response to the normalised trend, New Havi continues to strengthen thenationwide prevention and control mechanism and implement all prevention and control measures in depth to ensure the supply forcustomers, with an aim to ensure the safety of products, personnel and operations at all nodes of the supply chain. In terms offoundation construction, New Havi takes business development as a fulcrum to continuously expand its logistics footprint in China.On the one hand, it continues to expand in key cities across the country, with new logistics centers in Beijing and Tianjin now inoperation; on the other hand, the logistics network continues to extend to the west, namely Xinjiang and Tibet regions. As of the
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
reporting period, New Havi has 45 efficient logistics centers in 29 cities across China. In addition, New Havi’s technology capabilityhas been further enhanced. It has gradually built up a technology structure with product development as the core to provide internalsupport to optimize operational efficiency and offer external services to customers via high value-added technology solutions. As ofthe reporting period, New Havi has attained 10 self-researched core system intellectual property rights. At the business aspect, werely on its advantages in technology, logistics network and its extensive experience in serving Chinese market. New Havi has madedynamic adjustments to its business development strategies, such as establishing strategic cooperations and extending its productlines to the upstream and downstream of supply chain, etc., thus New Havi 's service area and scope continue to expand. Thanks to itsflexible business strategies, its overall business still keeps an upward trend and has achieved dual-digit growth. In June of the year,New Havi has received awards such as the China Federation of Logistics and Purchasing’s Cold Chain Logistics Expert Committee’s,ranking fourth in the “2019 China Cold Chain Logistics top 100 Companies” and 2021 China Catering Industry Summit’s "ChinaCatering Supply Chain top 10 Organizations".In the first half of 2021, the revenue from the Company’s supply chain business as a whole amounted to RMB5.294 billion,representing a year-onyear increase of 79.02%, staying ahead of its peers in the industry.
II. Competitiveness Analysis
(I) The complete product matrix and the diversified services capability empower SF to become a highlyefficient and reliable social infrastructure providerThe Company maintains a diversified layout. Based on the established, efficient and time-definite express network and througha two-wheel driving model of "Endogenous Development + Outward M&A", the Company continue to innovate and incubate newbusiness centring on the logistics ecosystem as well as invest in and acquire excellent logistics peers, in a view to gradually becomethe No. 1 comprehensive logistics service provider in China that covers express, freight, cold chain and pharmaceuticals, intra-cityinstant delivery, international express and supply chain. At the same time, the Company has developed different product sequencesfor the corresponding market segments of each business segment in response to the diversified requirements of customers. TheCompany has launched high-standard services that meet the high quality requirements of customers in the middle and high-endmarket, and cost-effective services that can meet the business needs of customers in the sinking market. Through such a completeproduct matrix and the organic combination of different products, we can deeply integrate into various business models and scenariosof customers and provide comprehensive end-to-end one-stop and full-chain integrated logistics supply chain solutions.In addition to its traditional strength as the industry leader in the time-definite Express, the Company had also achieved rapiddevelopment in the new business areas with diversified strategic layout, establishing industry-leading network coverage and depth,operational capability, innovative technology, service quality and brand image, and ranking top in terms of market share in respectivesegments. According to the revenue ranking in the 2021 China top 30 LTL Enterprises in released by Freightlink Intelligence, SFExpress ranked in first and became the first enterprise in LTL industry with annual revenue exceeding RMB20 billion. SF ranked firstin the 2020 list of top 100 cold chain logistics enterprises in China released by China Federation of Logistics and Purchasing.According to iResearch, SF Intra-city Express is the largest instant delivery service provider of independent third-party orders. Inaddition, New Havi and Sf DSC were established by acquiring and integrating excellent supply chain enterprises to rapidlyaccumulate and absorb international leading supply chain service experience and build complementary advantages. New businessesother than express business have accounted for 30.9% of the Company's overall revenue, becoming a new growth driver for the
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Company. In a nearly RMB15 trillion market of China's logistics industry, Sf has broad opportunities to grow.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
In addition, the Company announced in February 2021 that it intended to acquire 931,209,117 shares of Kerry LogisticsNetwork Limited (“Kerry Logistics”) (approximately 51.8% of the issued share capital of the target company or 51.5% of the fullydiluted share capital) and cancel 51.8% of Kerry Logistics’ share options that had not been exercised as at the final vesting date heldby Kerry Logistics’s share option holders on behalf of the Kerry Logistics. The transaction, if successfully closed, will furtherimprove the company’s capability of integrating integrated logistics solutions and effectively supplement its resources andcapabilities in international freight forwarding, customs clearance and other aspects. In combination with SF Holding’s internationalcargo airline resources and the target company’s extensive international freight forwarding network, this transaction will furtherstrengthen SF’s competitive advantage in international cross-border freight transport.
With its integrate product mix and multi-industry service capability, SF Holding 's businesses have penetrated various fieldssuch as industrial manufacturing, commercial circulation, agricultural products upward, food cold chain, pharmaceutical circulation,cross-border trade and local life, which achieved an all-round business coverage. At the same time, through the flexible combinationof network resources and service capabilities, the Company can seize the new market opportunities, adapt to new business forms, andeven lead a new model of future supply chain development. In the manufacturing and distribution sectors, with its high efficiencyfreight capacity and LTL end-to-end transportation, the Company facilitated production and distribution under the C2M and JITmodels, made a fast response to the small-batch and high-frequency packaging requirements, and turned around the high inventoryand low efficiency situation under the traditional mass production, multi-layered channel flow and multi-warehouse distribution. Inaddition to the domestic market, SF Holding also actively conducting international route network layout, and working with the fastfashion industry to make a rapid response to minimize overseas distribution costs and operational risks; meanwhile, leveraging on theO2O model that integrated the online e-commerce and offline local life, SF Holding can access customer's global inventory data, soas to match its product service at each timeliness level and provide user-friendly service that can fully meet the differentiated needsof consumers and deliver goods from central warehouse/branch warehouse/front warehouse/store at minute level/day/nextday/customized date. For cold chain sector, the Company continues to upgrade cold storage automation, temperature-controlledpackaging technology and process-wide temperature control system to create a nationwide cold chain network, grasp thedevelopment opportunity of the delayering demand for food cold chain and medical circulation channels under the trend of onlinepurchasing of fresh food and e-medical in China, and resolve consumers' livelihood and health needs without leaving home.
SF Holding will keep innovating, actively adapt to new business forms, new models and new trends, and promote supply chainmanagement and technological advancement in all industries. At the same time, against the epidemics and other special extremeenvironmental challenges, the Company still able to guarantee the normal operation of social production and people's livelihood withits strong network appeal and execution, thus became an efficient and stable social service supporter.
(II) Through development of digital and smart solution, driven by technological invocation, SF is leadingthe logistics industry on the technology front
SF Holding is committed to becoming a data and technology-driven company providing independent third party solutions.Based on its massive data and industrial experience acquired from diverse businesses, and industry-leading intelligent, digitaltechnology innovation, SF Holding empowers the transformation and upgrading of the industry’s supply chain. On the one hand, SFHolding focuses on transformation and upgrading of the digital and smart logistics network and supply chain foundation system, andcreates SF’s “intelligent brain” by opening up the digital closed-loop of operation, sales and experience and other links and sectors, inorder to help improving customer experience while reducing operational costs. On the other hand, relied on rich technology productsand data assets, SF Holding combined with the characteristic scenarios of various industries to quickly empower external customers.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
In addition, by upgrading data and AI platform and basic technology platform, SF Holding further enhances its basic capabilities toprovide fast, universal and flexible support for business innovation and iteration. At the same time, SF Holding will continues toconsolidate its technological capability, increase investment in pre-research technology and lay out of emerging technologies such asblockchain, privacy computing and unmanned X for long-term development by creating a virtuous innovation ecosystem focus on thetransformation of logistics and supply chain technology.SF Holding had 3,427 patents and 1,892 copyrights awarded or under application. The number of invention patent applicationsaccounted for 57% of the total patent applications. SF Holding was granted awards including the “Leading Technology AchievementAward 2021”, “Science and Technology Award for the Postal Industry” and “China’s Top 10 Leading Innovative Enterprises in SmartLogistics”.
1. Diversified business, plentiful scenarios, accumulation of rich massive data and technology platform's middleplatform capabilities
(1) Diverse and massive data assets
Relying on its diversified business scenarios, SF deposits nearly 100 petabytes of massive data from multiple channels such asreceipt and dispatching, transportation, orders, supply chain and customer experience through IoT equipment, businesses tracking andbuilds an elastic converged big data platform across multiple clouds and multiple centers for the storage and large-scale computingneeds of massive data, so as to escort SF’s digitalized and intelligent transformation and services.
(2) Efficient and flexible data platform
Based on self-developed underlying distributed computing, storage and scheduling structure, SF creates an ecologically oriented,all-domain data sharing capability center, providing a one-stop data intelligence platform for the full-stack of data models, assets,governance and operating, solving the challenges of data silo integration and security governance, so as to provide powerful datasupport for enterprises to carry out business model innovation, drive organizational and process evolution.
(3) Advanced and secure technology platform
We build an advanced, secure, reliable and efficient cloud foundation to achieve comprehensive cloudization and servitization ofapplication systems and continuously reduce the cost of basic resources; through features such as elastic scaling of resources andone-stop CI/CD R&D pipeline, we can significantly mitigate the constraints of technology deployment on businesses and flexiblysupport business strategies.
2. Technology-driven digitalized and intelligent transformation to help refine internal operations and empoweringcustomers to transform their supply chain
(1) Logistics big data network digitalized and intelligent
Leveraging on big data, IoT, RPA, airlines direct connection and other smart technologies and measures, SF has deeplydigitalized all aspects and elements of logistics operations. Through accurate and real-time collection of resource information inreceipt and dispatching, transit and transportation, we obtain front-end dynamic and static business data, and rely on comprehensiveoptimization of intelligent algorithms to drive the flexible allocation of all kinds of resources, and also conduct whole-cyclerefinement of process control to ensure the timely fulfillment of express shipments and reduce the cost of resource procurement anduse efficiency.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Receipt and dispatching: Based on AOI map, we combine prediction of piece volume and courier’s capability and other data toconduct intelligent management of 410,000 couriers, complete the optimal matching of receipt and dispatching tasks with transportresources, improve labour intensity of couriers and promote improvement of receipt and dispatching services.Transit: We display the operation of transit fields in 2D/3D view on a real-time basis, and conduct digital grid management ofstaff in transit field to improve its operating efficiency; an innovative mode of customs supervision for domestic and internationalexpress shipments is achieved for the first time, and we adopt multiple real-time risk-controlled mechanisms for custom examinationand passing as well as efficient real-time dynamic sorting mode, to achieve common production lines, data sharing and full visibility,and to build Asia's No. 1 high-frequency and time-sensitive all-cargo intelligent logistics aerial port.
Transportation: We refine and model control of the lifetime-cycle of air and land resources; upgrade trading model to supportdiverse demand access and fulfillment capabilities.
(2) Supply chain foundation digitalized and intelligent
By building a self-built end-to-end supply chain foundation system with fully independent intellectual property right(OMS/TMS/WMS/BMS), we connect all parts of supply chain business such as order, warehousing, transportation and settlement.Meanwhile, we rely on SF’s warehousing, logistics network and year’s of experience in the industry, leveraging blockchain, ROS,AIoT and other cutting-edge technologies to develop efficient resource matching and refined operation capabilities covering thewhole industry and realize digital management of the full-stack and the full scenario.
Furthermore, by integrating professional consulting, big data algorithms and R&D capabilities, we accumulate solutions fordemand forecasting, circular pickup, multi-level warehouse replenishment, network optimization, shop production selectionrecommendation, park management, inhouse optimization, terminal consumer analysis and other scenarios, covering FMCG, 3C,auto parts, beverage, medicine, government and enterprises and other industries,which help customers reduce costs and increaseefficiency, optimize marketing layout, and promote the upgrading of industrial digital intelligence.
3. Creating innovative technology products and providing data technology services for industry solutions
(1) Technology capability products
SF Trace: Based on self-developed trusted cross-chain components and privacy protection algorithms, it capitalizes the in-depthtechnology integration of blockchain and Internet of Things (IoT), combined with SF Holding's basic logistics service capabilities,to solve the problems of information data disconnection and bugsell in commodity channels in traditional traceability. SF Trace isapplied in various fields such as beverages, agricultural and sideline foods, cross-border commodities, and auto parts.
AI Argus: It integrates computer vision and edge computing technology to build an AIoT perception platform covering theentire network. It analyzes the key production factors of each scene in real time with hundreds of thousands of sensing contacts,forming real-time business dynamic data covering all scenes, thereby accumulating hundreds of millions of data assets and enrichingalgorithm IP to ensure high algorithm accuracy. Starting from the logistics scenes of SF Holding, it rapidly expands the applicationindustry relying on lightweight, flexible, rapid deployment and independent iterative learning mode, provides customers with digitalintelligent management and operation solutions, and facilitates the digital transformation and upgrading of the industry.
(2) Smart logistics products
SF United-store: It focuses on enterprises in the apparel, footwear, and fast-moving retail industries, and provides them withonline and offline (O2O) order performance monitoring and after-sales processing, full-scenario smart logistics management
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(including tripartite logistics) and other SaaS-based services in various order fulfillment scenarios to help customers completefull-link digital and intelligent transformation, refined business management and control, and cost reduction and efficiencyenhancement. It has served more than 5,000 customers, covering more than 200,000 stores in more than 20 sub-industries.
(3) Smart supply chain products
SF Cloud Chain: Relying on SF Holding's supply chain foundation matrix and AIoT, intelligent algorithms and othertechnologies, it builds a service cluster with fully independent intellectual property right to provide lightweight SaaS-based productservices. Based on the product's strong expandability, it can flexibly serve customers in different industries, solve the pain points ofvarious scenarios, adapt to enterprises of different sizes, create a one-stop full-link solution for the supply chain, and help enterprisesquickly realize the innovation of supply chain management mode.SF Network: Through the analysis of terminal demand and based on multi-factor considerations, multi-scenario configuration,and multi-objective calculations, it can analyze and solve supply chain network problems such as high transportation costs,cross-warehouse consignment, poor delivery timeliness, and low customer satisfaction, and provide planning-level optimizationsolutions for warehouse networks, routes, inventory and product selection, with visual analysis results.SF Cycle: For the inbound logistics scenario of manufacturing enterprises with many suppliers and large scale of production, itgathers key parties such as OEMs, suppliers, and carriers through intelligent algorithms and system integration to provide loadingand distribution plan in the production of material, with an aim to realize milk run, solve the problems of information fragmentation,short production plan lock-up period, and low resource utilization, and help enterprises improve resource utilization and optimizemanual experience.
4. Technology empowers safe and sustainable development, creating a win-win situation together
(1) Smart security control
Information security: SF Holding has continued to carry out the operation and optimization of the ISO27001 informationsecurity management system and ISO27701 privacy information management system, established and improved the data compliancesystem, and carries out grade protection evaluation of information system security. It has strengthened the control of sensitive data inall aspects including logistics ordering, pickup, transfer, delivery, and signature, and continuously improved security protectioncapabilities.
Business security: Using big data mining and machine learning technology, SF Holding has simulated risk behaviors in massiveair waybill data and established a multi-agent confrontation reinforcement learning system. In response to malicious claims,marketing cheating, business profit-making and other scenarios, SF Holding has strictly controlled the illegal behaviors such as blackproduction, scalpers, and wool party activities, so as to avoid and restore the company's economic losses. It has accumulated generalrisk control capabilities to achieve standardized output to credit, e-commerce, insurance and other industries.
(2) Sustainable packaging
Recycling packaging: SF Holding has created a brand-new recycling packaging and carrier operation management platform, toprovide customers inside and outside the industry with an overall recycling packaging solution, and upgraded the packaging carbonemission evaluation algorithm and system. The recycling box has been recycled 21.8 million times.
Green packaging: Relying on the green packaging technology laboratory, SF Holding has carried out research and developmenton reduction and degradation technology product solutions for plastic bags, tapes, and cushioning materials. In the first half of 2021,
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
a total of about 18,000 tons of raw materials was saved, and carbon emission was reduced by about 35,000 tons.
(III) Our integrated technologies and solutions support corporate clients to digitalise their own supplychain
Relying on its comprehensive logistics service capabilities and leading logistics technology capabilities, SF Holding hascontinued to penetrate into the supply chain of various industries and Industrial Internet. It provides full-chain digital solutionsbuilding on its diversified foundation and logistics technology capabilities, digging deep into the entire production and operationchain of order planning, purchasing implementation, manufacturing, and delivery operations. It also provides a full set of servicessuch as business consulting, inventory optimization, warehouse network planning, warehousing management, transportation anddistribution, and reverse logistics. At present, it has covered 8 major industry head customers, including fast-moving retail, appareland footwear, beverages, auto parts, 3C, medicine, household appliances, and financial insurance, helping customers improvetheir market competitiveness in terms of product, service, and cost, and move towards digital-intelligent transformation of the supplychain.Fast-moving retail industry: With the rapid development of D2C (Direct to Customer) scenes in social media and livebroadcasts such as WeChat, Tik Tok, and Kuaishou, changes in new retail format not only pose challenges for customers, but alsobring new opportunities to the logistics industry. The supply chain pain points and demands of various industries are becoming moreand more obvious. The fast-moving retail industry is mainly concentrated in SKUs, and its inventory involves expiration date andsafety, coupled with online and offline separation, frequent sales promotion, causing big challenges to inventory management, wherethe coexistence of sluggishness and out-of-stock can be observed easily.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
In terms of solutions for the fast-moving retail industry, SF Holding has joined forces with beauty brand customers to create a“e-commerce shared inventory” model, which mainly refers to the integration of inventory of different channels through the systemand the integration of inventory rights to achieve unified management of multi-channel inventory, thereby truly solving theomni-channel inventory turnover problems of brands based on reasonable deployment and on-demand performance. It turns onlineand offline logistics into real-time visualization and big data decision-making, realizing the circulation, control, optimization andsharing of channel inventory in a material sense. On the one hand, it can integrate inventory of different channels to realize unifiedmanagement, optimize logistics costs, and reduce inventory and capital occupation. On the other hand, it can grasp the dynamic dataof consumers globally and use consumption behavior to force the upstream supply chain, which not only allows the entire supplychain to operate efficiently, but also greatly increases the response speed and creates increments with a more on-demand shoppingexperience.
In addition, based on the retail store scenario, we jointly innovated with the world's leading retail giants. Using real-time IoT bigdata as well as efficient AI replenishment algorithms for shared inventories of regional warehouses, front warehouses, and stores, weimproved the inventory management efficiency of store staff by more than 90%, and sales increased by 10% year-on-year. In addition,thanks to the added real-time data warehouses, real-time visibility of distribution and logistics operations of stores, and coordinationwith more online and offline promotions, customers can get the goods they want on demand without being restricted by storeinventories, and can require the goods delivered directly with more personalized delivery requirements, which improves the intimacybetween customers and their consumers, and promotes the increase in sales of their brand's private domain fans.
3C communications industry: leading companies in the communications industry are faced with problems such as having toomany product matrices, wide global distribution of supply chains, and high management difficulties. And customers require in-depthcontrol over the upstream and downstream of the industry chain to achieve vertical integration of business processes. In response tothe volatility, complexity and uncertainty faced by the industry, SF continued to optimize algorithm models and systems, upgradelogistics equipment and services, and provide customers in the 3C industry with agile, accurate, high-quality, and cost-effectiveservices, so as to gradually realize the transformation from a logistics delivery service partner to a strategic win-win partner.
As the overseas epidemic intensifies this year, the transportation capacity in Southeast Asia, which is an important region for theproduction and assembly of raw materials in the consumer electronics industry, becomes the key demand and guarantee of industrycustomers. SF integrated its own flights and external transportation capacity to open up the transportation capacity resources of 11airlines at 6 ports in Hong Kong, Kunming, Chengdu, Xi'an, Shanghai, and Wuhan, which provided fast transportation responsecapabilities for urgent orders of overseas factories’ urgently needed raw materials and overseas finished products for 3C customers,and thus won a good reputation for agile response to the urgent needs of customers.
At the same time, during the peak of the new product launch of a leading electronic product company in the online shoppingfestival on June 18 this year, SF’s industry solution project team coordinated 25,000 front warehouses in 323 cities across China andit took less than 20 minutes on average to complete the first batch of orders from sale to delivery, with a sign-off rate of 100%, andzero error rate, helping customers bring the ultimate timeliness and experience to consumers.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Auto parts industry: Driven by macro policies such as carbon peak & carbon neutrality, the share of new energy & chargingpiles is gradually increasing compared with the proportion of traditional OEMs; and the trend of online consumption also makes therole of logistics service providers change from the original To B scenario to "To B + To C". Therefore, as the infrastructure provider,SF focused on the ability to provide full-link digital solutions to both the OEMs of core enterprises and participants at all levels.SF's auto parts industry technology solutions have covered all automotive link scenarios, including purchasing logistics,production logistics, after-sales logistics, reverse logistics, etc. At the same time, it has newly expanded the entire vehicle transportlogistics solution and the new energy charging pile installation and distribution integrated solution to provide consistent high-qualityservices to automobile manufacturers, spare part manufacturers, 4S shops and end customers across China.Among them, the intelligent networking project with China National Heavy Duty Truck, starting from the perspectives ofautomation, informatization, and digitization, actively explored the application of smart logistics supply chains on the industrial side,assisted the iterative upgrade of the automotive logistics industry, and was committed to satisfying customers' demand for supplychain services such as cost reduction across the entire chain, full-process perception and controllability, high-quality performance,and flexible production, creating the most advanced integrated pre-production intelligent logistics benchmark for China's commercialvehicles. The project was finally selected as a "Typical Case of Intensive Integration and Innovation Development of LogisticsIndustry and Manufacturing Industry" by the Development and Reform Commission of the State Council.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
In addition, as for the clothing, shoes and hats industry, SF continued to deepen the integrated service of To B To Cwarehousing and distribution for sports brand customers, expanding from the original domestic warehousing and distributionbusiness to the bonded warehousing and distribution business. At the same time, SF explored the maximum performance andvisualized management cooperation to realize the digital innovation of the supply chain, so as to actively lead the changes in marketdemand and enhance the market competitiveness of both parties. As for the smart home industry, based on in-depth analysis oncustomer needs and industrial capabilities, SF built scenario-based algorithm models and improved informatization tools to achievecustomer distribution network integration, omni-channel inventory, unified warehouse and co-allocation, and to connectmanufacturing data and logistics data, so as to realize the digital intelligence of the end-to-end value chain, effectively reducecustomers’ logistics costs, and improve the quality indicators of fulfillment and delivery. As for the pharmaceutical industry, theself-developed "SF NBAI (丰智云链)" (pharmaceutical version), on which SaaS can be deployed locally, has the characteristics offlexible connection with upstream and downstream systems, flexible adaptation according to customer scenarios, compliance withpharmaceutical industry standards, support for full-process temperature control management, and support for UDI management,assisting more industry customers to quickly improve the level of integrated supply chain logistics management, and thussignificantly enhances the integrated information management capabilities of warehousing and distribution of pharmaceuticalcustomers. As for the wine industry, SF is currently being in-depth cooperation with leading liquor, beer, and red wine companies,with its business being in more than 20 scenarios and customized service areas. And SF used the blockchain traceability platform "SFTraceability (丰溯)" to provide product traceability services for high-end wines, on which brand owners can realize the full life cyclemanagement of traceable source code, traceable data analysis, enterprise marketing management, etc. with the background data ofmerchants on SF Traceability (丰溯). As for the financial and insurance industry, in the bank card business, SF focused on theentire process of card application, card production, card issuance, receipt and transfer, and provided a package of solutions such as
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
co-branded card customization, automatic packaging and intelligence of card delivery, customization of time-sensitive products, andpersonalized delivery services. At the same time, in the information audit service, SF integrated its terminal outlets resources withtechnology, and thus realized the dual guarantee service capabilities of direct management and control + technological support, andprovided customers with efficient and convenient information audit services.The Company continued to explore together with top customers. It optimized and upgraded the traditional cost supply chainwith digital intelligence to have it transformed into a new revenue supply chain and a new business model of D2C (Direct toCustomer), so as to create new business growth with customers. At the same time, as a result of industry scenarios, the Company hasgradually built a product, capability and service system of"D2C SaaS+VAS" (standardized application + value-added service), whichwill help more growing SMEs to achieve more sustainable business growth in the future through on-demand configuration,plug-and-play SaaS products that are standardized, productized, and modularized as well as agile delivery based on cloud services.
SF adhered to the position of an independent third party, took technology as the lead and made use of its comprehensivelogistics service capabilities of multiple business formats. Thus, it had a complete set of supply chain solution implementationcapabilities of "technology integration + program implementation", forming a unique and leading core competitiveness in theindustry. While its cases successfully implemented in various industries also brought high recognition from cooperative customers.Driven by technological services, SF also further strengthened customers' stickiness to its logistics services, so as to form in-depthstrategic cooperation, jointly promot the transformation of digital supply chain, and work hand in hand with customers to achieve awin-win situation.
(Ⅳ) Unique and scarce intelligent logistics network, the “Aviation + Ground + Information” three-in-onenetwork
SF Holding continues to consolidate and upgrade its unique and scarce comprehensive logistics service network integratingthree networks, “aviation network + ground network + information network”, consistently consolidating and expanding its leadingadvantages in the industry. The aviation network system formed by mutually complementary “all-cargo aircrafts, commercial flightsand drones” builds a time barrier, and the scarcity of aviation resources ensures the Company’s lasting leading advantage. Theground network systems such as perfect terminal service point, stable delivery team, intensive transit allocation network, efficienttransportation network and smart customer service system, build differentiated service barriers. The Company’s control over theground network ensures a stable service timeliness; hundreds of thousands of couriers, the top 4 independent call centers and the top6 industry claim centers ensure warm customer experiences. By applying cutting-edge technologies such as big data, block chain, AI,and IoT to various business links and scenarios, SF Holding built an information network platform. On the one hand, it empowersinternal operation, improves network efficiency, and promotes a comprehensive upgrade of smart logistics. On the other hand, itempowers industry customers, and helps them reduce costs and increase efficiency, forming an open and win-win ecosystem, andpromoting industrial transformation and upgrading.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
1. Aviation network
In 2009, SF Airlines became the first privately-owned air freight company in China. Today, it has developed into China’s largestand the world’s leading air freight company, forming a cargo route network covering the whole country and expanding to Asia andreaching Europe and America, serving more than 80 cities around the world.All-cargo aircrafts: (1) Fleet building: It had 66 self-operated all-cargo aircrafts (of which, Boeing 767: 11 aircrafts, Boeing747: 2 aircrafts, Boeing 757: 36 aircrafts, Boeing 737: 17 aircrafts) with an average age of 24.5 years, and 13 chartered all-cargoaircrafts, operating 93 flight routes in total. (2) Traffic rights and airport slots: It had a total of 258 pairs of slots, covering 54 largeand medium-sized cities nationwide and international cities including Los Angeles, Liege, Frankfurt, Delhi, Singapore, Ho Chi Minhand Chennai. (3) Pilots: It had a total of 569 pilots, including 243 captains and 326 co-pilots. (4) Global operation: In the first halfof 2021, it operated 2,528 international flights in total, representing a year-on-year increase of 73.8%. 9 international and regionalroutes were newly launched, including Shenzhen-Los Angeles, Shenzhen-Manila and Chengdu-Dacca. Among them, Shenzhen-LosAngeles is SF Airlines’ first non-stop regular cargo route to the United States and the seventh intercontinental route operated byall-cargo aircrafts. (5) Aviation safety: Since its first flight, SF Airlines has entered its 12th year of safe operation and operatedover 500,000 hours safely.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Commercial flight resources: SF has secured stable passenger aircraft bellyhold resources from more than 100 commercialairlines at home and abroad through direct operations (cooperating directly with airlines), agents (freight forwarders), or tripartitecooperation (SF, airlines, and agents) to operate 2,172 flight routes across China and the world, achieving full coverage of directcooperation in head and waist airlines, and gradually completing the national strategic fulcrum layout of the aviation bellyholdbusiness.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
As at the end of the reporting period, SF Holding’s all-cargo aircraft and commercial flights operated a total of 2,265 flightroutes, and the total number of flights in the first half of 2021 was 732,500, with a daily average of 4,047 flights. Total air cargovolume handled was approximately 894,200 tonnes, of which all-cargo volume handled was 481,400 tonnes, up 18.06%year-on-year.
Freight capacity of SF Holding’s air transport business:
| Resources | End of the current reporting period/Current reporting period | Daily average during the reporting period | |
| All-cargo aircrafts | Number of self-operated aircrafts | 66 aircrafts | - |
| Number of external chartered aircrafts | 13 aircrafts | - | |
| Number of all-cargo aircraft routes | 93 routes | - | |
| Total number of flights | 26,600 flights | 147 flights | |
| Total cargo volume | 481,400 tonnes | 2,660 tonnes | |
| Resources | End of the current reporting period/Current reporting period | Daily average during the reporting period | |
| Commercial flights | Number of commercial flight routes | 2,172 routes | - |
| Total number of flights | 705,900 flights | 3,900 flights | |
| Total cargo volume | 412,800 tonnes | 2,280 tonnes | |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
2. Ground network
Service points: As at the end of the reporting period, SF Holding’s business covered 335 prefecture-level cities and 2,848county-level cities, with approximately 21,000 directly-operated service points. The international standard express/internationaleconomy express businesses covered 78 countries and regions abroad. The international small parcel business covered 225countries/regions around the world. The Company had about 410,000 couriers under various workforce models.
Transit Hub Distribution: As at the end of the reporting period, SF Holding had 10 hub-level transit depots, service points at37 aviation and railway stations (excluding stations sharing sites with transit depots), and 151 sub-district transit depots (excludingSF freight and SX Freight), of which 129 transit depots have adopted the automatic sorting equipment, representing an increase of 8transit depots as compared with the end of previous year. The freight delivery network (including SF Freight and SX Freight) has 41hubs and 79 regional hubs, 13 of which have been put into operation with automation equipment.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Ground transportation network: As at the end of the reporting period, SF Holding had about 68,000 directly-operated andoutsourced vehicles for more than 120,000 long-haul and branch routes. The total number of vehicles for terminal collection anddelivery was about 110,000 (excluding motorcycles and two-wheeled/three-wheeled electric vehicles). High-speed railway lines(including Rail Speedy Express（极速达）services and standard railway lines) had covered 91 cities with 541 flow-directions in use.There are 4 pairs of express lines (being 8 lines) and 106 standard railway lines in use. By leveraging stable railway transportationcapacity, the Company powered the dispatch and delivery of products with regional characteristics such as cherry and other freshproducts in the first half of 2021. In addition to freight business, the Company has developed its capacity to transport grain, coal coke,non-ferrous metals, building materials and chemical products and other domestic bulk materials, targeting industry-leading customersto develop replicable multimodal transportion solutions. At the same time, the Company has developed its stable dispatch anddelivery capacity using international freight train on new platforms to carry out the operation of special trains for e-commerce and theinternational business of China-Europe freight trains.
Warehousing network: SF warehousing network consists of self-operated warehouses and franchise warehouses, the differenceof which was positioned based on customers’ production, circulation, and consumer end. A national warehousing network resourcelayout was formed by a combination of heavy and light assets model, and ultimately a warehousing network of efficiency, flexibility,and complementarities was created. SF Holding owns warehousing systems with independent intellectual property rights, automationequipment research and development capabilities, and storage planning and design capabilities. By realizing manpower digitalization,production capacity digitalization, operation digitalization and end-to-end visualization through the digital transformation ofwarehousing, functions of business planning, business decision-making and risk early warning are able to be improved, thereby theCompany can effectively achieve substantial cost reduction and efficiency enhancement. Meanwhile, the Company improves itsefficiency by studying of a variety of automation equipment integration and synergy, and realizes dynamic optimal scheduling and
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
allocation of task priority by establishing a resource model and strategy through dynamic algorithm and automation engine. With thesupport of scientific and technological capabilities, SF warehousing network was able to meet the different demands of customers invarious industrial segments in cooperation with SF Express and other SF ecological businesses, and provide customers withmulti-scenario, end-to-end intelligent supply chain solutions.
SF Holding owned 259 self-operated warehouses of various types (including the New Havi cold-chain logistics center), with atotal area of approximately 3.05 million square meters. The Company continued to strengthen the nationwide warehousing servicenetwork, consolidate the warehousing service capabilities, provide more customized supply chain solutions for warehousing anddistribution based on scenario requirements of brand customers, and constantly improve the innovation of warehousing anddistribution integrated operation model to establish benchmarks in various industries such as 3C, shoes and apparel, cosmetics, coldchain of food and pharmetical. The Company continued to increase investment in automation equipment to constantly invest andoptimize automation equipment in warehouses across the network. The warehousing system is continuously optimized and iterated,supporting the development of customers with multi-industry and multi-scenario business by scientific and technological means,providing support for significantly improving the capacity and efficiency during peak. During the “618” peak period of 2021, thee-commerce warehousing and distribution business volume of the Company increased by more than 100% year-on-year, and theoperational efficiency and delivery quality continued to improve.Shuangjie Supply Chain, a subsidiary of the Company, has 161 franchise warehouses, covering an area of 2.34 million squaremeters, which acted as a backup complementation to self-operated warehouse resource. As an open and independent supply chainservice platform integrated with warehousing and distribution, Shuangjie Supply Chain, oriented to demands of e-commerce and newretails logistics, provides clients with a set of warehouse-based omni-channel (ToB, ToC online and offline) products, and empowersthe franchise warehouses by warehouse management system and SOP process optimization and other lean management methods, inorder to improve its operational capability and service quality.Moreover, with existing e-commerce platform customers, SF International strived to establish overseas warehousing network byfocusing on overseas markets with cross-border e-commerce development potential. At present, SF International has set up 15overseas warehouses next to the ports in a total of 9 overseas countries and regions, including United States, Germany, Estonia, UK,
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Poland, Thailand, Indonesia, Japan and Australia. Leveraging on domestic and overseas collection and delivery network,warehousing, customs clearance, agency and other resources, SF International is able to provide one-stop import and export supplychain service for customers.
Customer service network: SF Holding is committed to developing cutting-edge customer service systems and servicestrategies, taking advice from customers and responding promptly to their needs; and to building a smart and digitalized servicemanagement platform, in order to provide them with professional, efficient and user-friendly services. SF Holding has four separatecall centers, six industry claim centers, and 1,000,000 customer calls are served on a daily basis. Customers have 24/7 access tointernet-based self-service via WeChat mini apps, WeChat public account, the Company’s official website, the SF Credit AccountManagement Platform and mobile apps.
Last mile service: By focusing on customer’s diversified needs on pick-up and delivery, SF Holding has been improving thecustomer service experience. On the one hand, SF Holding continues to strengthen the construction of couriers team, and implementsthe concept of “3+1” to unified service standards, so as to improve the experience of “user-friendly” in the last mile service. On theother hand, leveraging on the synergistic effect between terminal channel and couriers, SF Holding built a third-party serviceprovider operating system and an intelligent delivery model, and accelerated cooperation in resources co-allocation with third-partyto create a win-win situation. Besides, by expending the coverage of the last 100 miles service of Hive Box lockers in cities andopening up China Post express delivery system routing in lower tier rural areas, SF Holding was able to provide “once postage forexpress delivery (一票到底)” service, and an terminal network layout integrated with "home delivery, locker delivery, and stationdelivery " for the Company’s last mile service has been formed initially, to provide customers with “more friendly and moreconvenient” pick-up and delivery service. As of the end of the reporting period, SF Holding established 128,000 terminal serviceoutlets through cooperating with urban service outlets, service agency outlets in townships, property management companies andhospitals/ scenic spots/transportation hubs, increasing the coverage rate of outlets at counties and townships level by 3.75 percentagepoints over the end of last year to 91.10%.Hive Box Technology, in which SF Holding has invested as a shareholder, looked to explore and meet multi-scenariocustomized needs through technology application, covering delivery locker, smart micro warehouse, bag locker, government affairscabinet and other smart end products. Hive Box Technology continued to expand its coverage footprint in the express industry withunique momentum to develop the last mile of diversified service. Hive Box Technology has set up service outlets in 160,000+communities in 200+ key cities, and has established 300,000+ locker outlets. So far, Hive Box Technology is home to 4.6 millionregistered couriers in aggregate, serving 360 million customers.
Hive Box lockers, as part of the terminal delivery solution, are flexible and safe and able to meet customers’ personalizedreceiving needs and improve customer’s experience; it can also increase the delivery efficiency of the last mile service and will helpthe Company implement the contact-less delivery strategy for the last mile service, so as to enhance the efficiency of terminaldelivery on the other hand. In response to the coronavirus pneumonia outbreak, Hive Box lockers are regarded as the major solutionof safe shipping without physical contacts, with more packages put into lockers. Contact-less delivery helps consumers cultivate ahabit of picking up packages from lockers, and is expected to speed up the development of smart locker industry.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
3. Information network
SF Holding has independently researched and developed a complete set of smart information network platforms. The set of allthose platforms has covered all business segments and scenarios to enable business in a fast, flexible, safe and comprehensive manner,and has promoted logistics full chain information interconnection, which has created a smart and solid foundation for the diversifiedbusiness development of the Company. Meanwhile, SF Holding has also been committed to the development and implementation ofcutting-edge technologies, applied cutting-edge technologies such as big data, block chain, AI and Internet of Things to morepractical business scenarios, and supported new technology applications with cloud computing. SF Holding has adhered touser-oriented product design to enhance business performance and user experience, and enabled technology and products to beconscientiously implemented and better serve customers. Moreover, SF Holding has also integrated internal resources. Relying onmassive internal and external data, SF Holding uses data and technology to make decisions and lead operations, and created SF’s“intelligent brain”, realizing data-driven technology and technology-enabled logistics. SF Holding achieved the integration of thethree networks of “aviation + ground + information” into one network, providing support to unlimited business possibilities.
(V) First-mover development of scarce logisitcs land resources to facilitate industrial upgrades
SF Industrial Park is committed to becoming an industrial park operator based on modern logistics. As an important part of itsstrategic layout, it will continue to diversify SF Holding’s “ground network”, to complete SF’s key resources and services providedto customers. Actively responding to the requirements of the “14th Five-Year Plan” for the express delivery industry and the national“New Infrastructure” policy, the Company has built “smart logistics” parks and “technological innovation” parks, while developingdigital infrastructure industry chains such as “information network” and “transportation logistics network”. It provides customerswith a full range of comprehensive package services in warehousing, logistics, business flow, information and capital flows tooptimize and upgrade their supply chains and empower their business development. As at the end of the reporting period, SF Holdinghas successfully laid out an industrial park project across 53 cities, and the logistics sites covered a land area of approximately 9,300mu, approximately 2.04 million square meters of the operational project were completed. It is expected that approximately 0.99million square meters will be completed in the second half of 2021, in the next three years, the area under management and operationof SF Industrial Park will exceed 6 million square meters.
In order to support the sustainable and healthy development of the Company's logistics industrial park, meet the demand for siteresources for the development of the main logistics business, broaden financing channels, and build a capital operation platform forthe industrial park, the Company will set up a real estate trust fund with three properties located in Foshan, Wuhu, and Hong Kong ofChina as the underlying assets, and will be listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 17, 2021.At the same time, the Company intends to jointly establish a logistics development fund with Hammer Capital Real Estate Limited toinvest in strategically located logistics industrial park projects to further enhance the Company's core competitiveness.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(VI) SF Holding adopts an operating model with strong management control over the whole network andwith stability and flexibility
SF Holding adopts an operating model that maintains strong management and control over the whole network, with the wholeexpress delivery network and key resources under the strict control of its headquarters, covering all links of the business chain, whichis conducive to the precise alignment of its corporate strategies from top to toe, as well as the effective achievement of its strategiesand business goals; it also helps to maintain the stability and controllability of our operation, standardization and compliance of ourinternal control, and ensure standardized operations, high operational efficiency and high service quality, thereby enhancingcustomer’s loyalty and brand reputation. While maintaining strict control of the key links and core resources, we have adopted adiversified resource acquisition and operation model, aiming to enhance the flexibility of the whole network and the space forexpansion, and extend the coverage of our services; we rely on our standardized operation and control processes that have beendeveloped upon many years of experience, as well as the advanced logistics technology to ensure the controllability and stability ofthe entire logistics chain, so as to achieve full control of the overall network and further enhancement of resource efficiency, providesupport for business expansion, and form a stable and flexible network foundation. Meanwhile, the Company’s new businesses havemade full use of the existing network resources to achieve synergy among network, customers, technology and resources, so as togrow rapidly and complement the existing businesses.
(VII) Shaping a good brand image with a long-standing top ranking in service quality
SF Holding has established itself as a well-recognized and reputable express delivery service provider through over 20 years ofdevelopment. It is synonymous with “efficiency”, “punctuality” and “safety”, widely noted for its excellent corporate image andbrand value and been widely recognized by customers, the industry and the community.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
At the regular press conference of the first quarter held on January 14, 2021, according to the 2020 “Overall Satisfaction ofExpress Delivery Enterprises” (《2020年快递企业总体满意度》) released by the State Post Bureau, S.F. Express has ranked No.1 in“Overall Satisfaction towards Express Delivery Service Enterprises” for 12 consecutive years. Meanwhile, it ranked first, for the 8thconsecutive year, in terms of whole-process time limit and 72-hour punctuality. SF Holding was ranked 5th among “Most AdmiredChinese Companies” in 2020 by Fortune, rising four places. This was the fourth consecutive year that SF Holding had been listedamong the most admired Chinese companies. In the “World’s Top 500 Most Valuable Brands” released by BrandFinance, awell-known brand value consulting company, SF Holding ranked 270th, representing a significant rise compared with that of 2020(460th place).
(VIII) Warm, principled and productive SF culture
In SF’s history of development, corporate culture is not just a belief, but more as a commitment and practice. It is reflected inevery word and action of all SF employees, is expressed in every operating process, and has become a strong spiritual force that isembedded in SF’s cohesiveness, competitiveness, and vitality. 1. SF’s success is grounded in assisting customers to succeed: SFhas always been customer-oriented and is committed to providing customers with above expectation services, assisting customers tocreate value and achieve success. During the COVID-19 pandemic, no matter the regional outbreak in Shijiazhuang at the beginningof the year, or subsequently in Ruili and Guangzhou, as one of the very few logistics service providers that can maintain normaloperations and provide end-to-end whole-process services, SF Holding has joined the fight against the pandemic by regarding thefight as its unshirkable responsibility. Starting from customer needs, SF’s customer support team has made every attempt to maintainsafe and stable services for customers during the pandemic, thus winning trust from customers. 2. Innovation drives SF forward:
SF Holding advocates the culture of innovation, emphasizing that everyone and every move can be innovative. While improvingproductivity and service quality through research and development of new technologies, it has continuously introduced innovativeservice and solutions by keeping pace with market changes to provide customers with high-quality, efficient services. 3. Equalityand respect uniting every heart: SF treats every staff equally and with respect, respecting the value of their contributions, providing
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
everyone with equal development opportunities and assisting staff to actualize personal value. SF cares every employee and provideddiversified benefits by group such as family insurance and employee condolences to improve employee perception and satisfaction.During the Spring Festival, SF actively responded to the national policy of "Chinese New Year in situ" and encouraged employeesfrom all over the country to celebrate the Chinese New Year in situ, and provided various care and benefits. 4. Be responsibleproactively and fulfill the mission: SF has always been participating in social welfare activities and proactively assuming socialresponsibilities. Whenever natural disaster outbroke, SF Holding actively devoted actively devote itself to disaster relief byexploiting its strengths. During the COVID-19 pandemic, SF Holding stood firm mobilizing its HR, transportation and financialresources to the fullest extent, provided a strong specialized assistance for the delivery of antipandemic materials and living supplies,and built “green channels” for the transportation of pandemic control supplies. SF Holding also encourages employees to take socialresponsibility. Upholding just and rightful acts, working for the public good, and other positive events occur more and morefrequently among SF couriers. Yang Jingshan, the founder of a “volunteer service team” during the pandemic, Li Yuanping, who hasdonated blood for free for 22 years, and many other SF staff proactively shoulder social responsibility, conveying touching sensations.On February 17, Wang Yong, the “most impressive courier”, was selected as "Moving China" 2020 Person of the Year. Servingcustomers and giving back to the society with the simplest actions and the most sincere beliefs are the social responsibilities of SFstaff.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
III. Analysis on Main Business
OverviewIs it the same with those disclosed in Primary Business of the Company during the Reporting Period?
√ Yes □ No
For details, please refer to “I. Primary Business of the Company during the Reporting Period”.Year-over-year changes to major financial data
Unit: RMB
| Current Reporting Period | The Same Period of Previous Year | Increase/Decrease over the same period of previous year | Rationale | |
| Revenue | 88,343,929,823.78 | 71,129,007,738.21 | 24.20% | Mainly due to business growth. |
| Cost of revenue | 79,421,353,588.40 | 57,863,128,901.41 | 37.26% | Mainly due to business growth, investment increase in improving productivity and expansion of new business. |
| Selling and distribution expenses | 1,310,233,654.15 | 1,056,658,701.93 | 24.00% | |
| General and administration expenses | 6,529,046,289.13 | 5,861,443,162.73 | 11.39% | |
| Financial expenses | 621,902,222.77 | 472,967,469.92 | 31.49% | Mainly due to the impact of interest expenses on lease liabilities resulting from the adoption of new lease standard. |
| Income tax expense | 677,358,703.20 | 1,714,998,647.00 | -60.50% | Mainly due to the decrease in total profits and increase in deductible tax losses for which no deferred tax asset was recognised. |
| Research and development investment | 1,708,373,810.41 | 1,311,258,210.74 | 30.29% | Mainly due to the increase in research and development activities. |
| Net cash flows from operating activities | 4,331,632,843.16 | 6,931,712,320.10 | -37.51% | Mainly due to the decrease in net profit. |
| Net cash flows from investing activities | -10,892,398,614.05 | -17,870,077,628.81 | 39.05% | Mainly due to the increase in net cash inflows from disposal of subsidiaries, decrease in net cash outflows of structural deposits, and increase in net cash outflows for purchasing and constructing long-term assets. |
| Net cash flows from financing activities | 7,324,694,755.57 | 2,545,719,388.91 | 187.73% | Mainly due to the increase in capital contribution from minority and net cash inflows from borrowings. |
| Net increase in cash and cash equivalents | 777,176,873.33 | -8,373,723,779.87 | 109.28% | For details please refer to the above analysis of cash flow changes in operating activities, investing activities and financing activities. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
There were no significant changes in profit composition or sources of profit during the reporting period.Composition of revenue
Unit: RMB
| Current Reporting Period | The Same Period of Previous Year | Increase/Decrease over the same period of previous year | |||
| Amount | Proportion of Revenue | Amount | Proportion of Revenue | ||
| Revenue | 88,343,929,823.78 | 100% | 71,129,007,738.21 | 100% | 24.20% |
| Categorized by industry | |||||
| Express logistic and supply chain | 87,099,464,261.56 | 98.59% | 70,188,001,144.10 | 98.68% | 24.09% |
| Sales of goods | 563,159,220.18 | 0.64% | 452,123,296.72 | 0.64% | 24.56% |
| Others | 681,306,342.04 | 0.77% | 488,883,297.39 | 0.69% | 39.36% |
| Categorized by product | |||||
| Time-definite Expressnote 3 | 46,161,162,400.04 | 52.25% | 43,343,101,741.61 | 60.94% | 6.50% |
| Economy Product note 3 | 14,890,048,712.29 | 16.85% | 8,802,434,291.67 | 12.38% | 69.16% |
| Freight | 11,512,628,979.08 | 13.03% | 7,674,464,424.81 | 10.79% | 50.01% |
| Cold Chain and Pharmaceuticals | 3,719,997,345.16 | 4.21% | 3,240,731,441.57 | 4.56% | 14.79% |
| Intra-City Instant Delivery | 2,241,284,109.83 | 2.54% | 1,265,413,899.41 | 1.78% | 77.12% |
| International Express | 3,280,794,909.92 | 3.71% | 2,904,883,603.56 | 4.08% | 12.94% |
| Supply Chain | 5,293,547,805.24 | 5.99% | 2,956,971,741.47 | 4.16% | 79.02% |
| Others | 1,244,465,562.22 | 1.41% | 941,006,594.11 | 1.32% | 32.25% |
| Categorized by region | |||||
| Express logistic and supply chain – East China | 25,952,910,364.81 | 29.38% | 19,336,652,950.23 | 27.19% | 34.22% |
| Express logistic and supply chain – South China | 23,803,547,991.27 | 26.94% | 19,002,148,999.94 | 26.72% | 25.27% |
| Express logistic and supply chain – North China | 17,196,437,337.63 | 19.47% | 14,826,811,732.21 | 20.84% | 15.98% |
| Express logistic and supply chain – Central China | 11,318,052,416.74 | 12.81% | 9,226,900,387.54 | 12.97% | 22.66% |
| Express logistic and supply chain – West China | 6,782,220,948.23 | 7.68% | 5,664,614,722.70 | 7.96% | 19.73% |
| Express logistic and supply chain – Hong Kong and Macao | 1,377,672,381.40 | 1.56% | 1,406,433,781.68 | 1.98% | -2.04% |
| Express logistic and supply chain – Overseas | 668,622,821.48 | 0.76% | 724,438,569.80 | 1.02% | -7.70% |
| Sales of goods and others | 1,244,465,562.22 | 1.41% | 941,006,594.11 | 1.32% | 32.25% |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Industrial Information Disclosure No.9 – Listed Companies Engaged in the Express Delivery Services Business”
Unit: RMB
| Revenue | Cost of revenue | Gross Profit Margin | Revenue Increase/ Decrease over the same period of previous year | Cost of revenue Increase or Decrease over the same period of previous year | Gross Profit Margin Increase or Decrease over the same period of previous year | |
| Categorized by industry | ||||||
| Express logistic and supply chain | 87,099,464,261.56 | 78,446,298,960.60 | 9.93% | 24.09% | 37.33% | -8.69% |
| Amount | Proportion of Total Profit | Reason | Whether Sustainable | |
| Other income | 716,561,124.08 | 65.55% | Mainly including government grants related to daily activities, which comprise value-added tax additional credit and other tax preference. | No |
| Investment income | 1,130,498,743.99 | 103.42% | Mainly including investment income from the disposal of subsidies and income from structured deposits. | Income from structured deposits is sustainable; while other investment income is not sustainable. |
| Gains and losses arising from changes in fair value | 29,589,246.28 | 2.71% | No | |
| Credit impairment losses | -11,176,161.04 | -1.02% | No | |
| Asset impairment losses | -592,019.83 | -0.05% | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Non-operating income | 125,023,072.59 | 11.44% | Mainly including government grants unrelated to daily activities and compensation income. | No |
| Non-operating expenses | 126,095,725.78 | 11.54% | Mainly including losses on scrapping of assets and compensation expenses . | No |
| Item | End of Current Reporting Period | End of Previous Year | Increase/ Decrease in Proportion | Major Changes | ||
| Amount | Proportion of Total Assets | Amount | Proportion of Total Assets | |||
| Cash at bank and on hand | 16,862,359,321.83 | 12.64% | 16,417,891,707.19 | 14.77% | -2.13% | For details, please refer to analysis on cash flow in “III. Analysis on Main Business” under Chapter 3 Management Discussion and Analysis. |
| Financial assets held for trading | 10,024,418,773.30 | 7.51% | 6,276,922,669.69 | 5.65% | 1.86% | Mainly due to increase in structured deposits. |
| Accounts receivable | 18,603,262,202.89 | 13.95% | 16,849,064,250.79 | 15.16% | -1.21% | Mainly due to business growth. |
| Advances to suppliers | 2,310,290,874.56 | 1.73% | 3,176,518,926.99 | 2.86% | -1.13% | Due to the impact of adopting new lease standard. For details, please refer to “2 Summary of significant accounting policies and accounting estimates - (31) Significant changes in accounting policies” under Chapter 10 Financial Statements. |
| Inventories | 981,610,149.77 | 0.74% | 986,950,595.04 | 0.89% | -0.15% | No major changes. |
| Contract assets | 375,776,993.91 | 0.28% | 399,035,179.94 | 0.36% | -0.08% | No major changes. |
| Long-term equity investments | 5,075,968,100.17 | 3.81% | 3,647,231,277.90 | 3.28% | 0.53% | Mainly due to increase in investments in joint ventures and associates. |
| Investments in other equity instruments | 4,455,155,248.78 | 3.34% | 5,027,489,054.30 | 4.52% | -1.18% | Mainly due to disposal of investments in stocks. |
| Investment properties | 1,430,515,368.05 | 1.07% | 2,219,404,821.35 | 2.00% | -0.93% | Mainly due to disposal of subsidiaries. |
| Fixed assets | 22,740,388,614.84 | 17.05% | 22,356,651,754.60 | 20.11% | -3.06% | No major changes. |
| Construction in progress | 6,521,949,882.48 | 4.89% | 5,379,854,462.06 | 4.84% | 0.05% | Mainly due to increase in investments in industrial park projects and distribution hubs. |
| Right-of-use assets | 13,374,738,542.41 | 10.03% | - | 0.00% | 10.03% | Due to the impact of adopting new lease standard. For details, please refer to “2 Summary of significant accounting policies and accounting estimates - (31) |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Significant changes in accounting policies” under Chapter 10 Financial Statements. | ||||||
| Intangible assets | 9,896,036,364.07 | 7.42% | 10,633,114,090.26 | 9.57% | -2.15% | Mainly due to disposal of subsidiaries. |
| Short-term borrowings | 15,018,583,357.05 | 11.26% | 7,996,570,312.73 | 7.19% | 4.07% | Mainly due to additional short-term borrowings. |
| Accounts payable | 15,896,242,092.03 | 11.92% | 15,484,940,351.95 | 13.93% | -2.01% | No major changes. |
| Contract liabilities | 1,816,741,934.15 | 1.36% | 1,539,264,096.14 | 1.38% | -0.02% | No major changes. |
| Employee benefits payable | 3,259,281,586.74 | 2.44% | 4,310,829,146.80 | 3.88% | -1.44% | Mainly due to payment of employee benefits. |
| Other payables | 7,581,186,251.15 | 5.68% | 7,530,793,784.24 | 6.77% | -1.09% | No major changes. |
| Current portion of non-current liabilities | 7,727,706,661.82 | 5.79% | 2,945,350,894.28 | 2.65% | 3.14% | Due to the impact of adopting new lease standard. For details, please refer to “2 Summary of significant accounting policies and accounting estimates - (31) Significant changes in accounting policies” under Chapter 10 Financial Statements. |
| Other current liabilities | 2,138,161,857.86 | 1.60% | 92,355,845.77 | 0.08% | 1.52% | Mainly due to issuance of short term corporate debentures and super short term commercial papers. |
| Long-term borrowings | 1,758,386,807.78 | 1.32% | 1,865,820,266.05 | 1.68% | -0.36% | No major changes. |
| Bonds payable | 8,860,323,061.45 | 6.64% | 8,425,430,468.77 | 7.58% | -0.94% | No major changes. |
| Lease liabilities | 8,140,284,965.55 | 6.10% | - | 0.00% | 6.10% | Due to the impact of adopting new lease standard. For details, please refer to “2 Summary of significant accounting policies and accounting estimates - (31) Significant changes in accounting policies” under Chapter 10 Financial Statements. |
| Capital reserve | 25,549,775,675.75 | 19.15% | 24,405,217,286.50 | 21.96% | -2.81% | Mainly due to the contributions from minority. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
| Item | Opening Balance | Changes in Fair Value Gains and Losses in Current Period | Accumulated Fair Value Changes Included in Equity | Provision for Impairment in Current Period | Amount of Purchase in Current Period | Amount of Sales in Current Period | Other Changes | Closing Balance |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) Note 1 | 7,108,448,710.77 | 29,589,246.28 | - | - | 3,584,859,597.06 | 10,568,692.12 | 158,910,181.28 | 10,871,239,043.27 |
| 2. Investments in other equity instruments | 5,027,489,054.30 | - | -81,332,522.97 | - | 28,410,932.19 | 472,850,846.22 | -46,561,368.52 | 4,455,155,248.78 |
| Subtotal financial assets | 12,135,937,765.07 | 29,589,246.28 | -81,332,522.97 | - | 3,613,270,529.25 | 483,419,538.34 | 112,348,812.76 | 15,326,394,292.05 |
| Total | 12,135,937,765.07 | 29,589,246.28 | -81,332,522.97 | - | 3,613,270,529.25 | 483,419,538.34 | 112,348,812.76 | 15,326,394,292.05 |
| Financial liabilities | 22,155,013.53 | - | 1,548,378.54 | - | - | - | - | 23,703,392.07 |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
4. Limitation of asset rights as of the end of the reporting period
At the end of the reporting period, the Company’s assets with restricted rights are mainly legal reserves in the Central Bank andlong-term bank borrowing mortgage, details of which are as follows:
Unit: RMB
| Item | Book Value at the End of Period | Limitation Reason |
| Cash at bank and on hand | 657,359,839.02 | Legal reserves in the Central Bank |
| Fixed assets | 138,131,064.70 | Long-term borrowing mortgage |
| Intangible assets | 37,331,287.81 | Long-term borrowing mortgage |
| Investment properties | 120,581,681.47 | Long-term borrowing mortgage |
| Construction in progress | 56,904,866.40 | Long-term borrowing mortgage |
| Total | 1,010,308,739.40 |
| Investment Amount During the Reporting Period (RMB) | Investment Amount During the same period of previous year (RMB) | Change |
| 9,779,121,645.46 | 4,073,775,309.03 | 140.05% |
| Item | Investment Amount During the Reporting Period (RMB) |
| Office and Buildings | 319,226,178.92 |
| Land | 1,017,940,227.93 |
| Warehouse | 614,274,346.62 |
| Sorting center | 3,079,207,621.27 |
| Aircraft | 1,463,149,260.61 |
| Vehicle | 750,959,721.02 |
| Information technology equipment | 414,673,536.57 |
| Equity investments | 590,678,590.99 |
| Others | 1,529,012,161.53 |
| Total | 9,779,121,645.46 |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
4. Investments in Financial Assets
(1) Investments in Securities
√ Applicable □Not applicable
Unit: RMB
| Security Type | Stock Code | Abbreviation of Security | Initial Investment | Accounting Measurement Model | Book value at the beginning of the reporting period | Gains and losses from changes in fair value during the period | Accumulated fair value changes included in equity | Purchase amount during the reporting period | Sales amount during the reporting period | Gains and losses of the reporting period | Book value at the end of the reporting period | Accounting items | Capital source |
| Domestic and foreign stock | 06166 | China VAST | 235,363,230.78 | Fair value measurement | 278,203,363.27 | - | -14,487,217.96 | - | 15,675,043.26 | 14,620,117.03 | 245,170,032.06 | Investments in other equity instruments | Self-owned funds |
| Domestic and foreign stock | 01810 | Xiaomi Corporation | - | Fair value measurement | 386,952,350.26 | - | -66,147,133.51 | - | 316,948,959.29 | - | - | Investments in other equity instruments | Self-owned funds |
| Domestic and foreign stock | 01492 | Zhongdi Dairy | - | Fair value measurement | 100,084,665.79 | - | 141,583.16 | - | 100,226,843.67 | - | - | Investments in other equity instruments | Self-owned funds |
| Domestic and foreign stock | 300771 | Zhilai Technology | 21,377,000.00 | Fair value measurement | 125,918,400.00 | - | -18,115,200.00 | - | - | - | 107,803,200.00 | Investments in other equity instruments | Self-owned funds |
| Domestic and foreign stock | GB00BLH1QT30 | Samarkand | 28,160,015.47 | Fair value measurement | - | - | 14,390,410.09 | 28,410,932.19 | - | - | 42,974,604.86 | Investments in other equity instruments | Self-owned funds |
| Other securities held at the end of the period | - | -- | - | - | - | - | - | - | - | -- | -- | ||
| Total | 284,900,246.25 | -- | 891,158,779.32 | - | -84,217,558.22 | 28,410,932.19 | 432,850,846.22 | 14,620,117.03 | 395,947,836.92 | -- | -- | ||
| Disclosure Date of Securities Investment Approval Board Announcement | N/A | ||||||||||||
| Disclosure Date of Securities Investment Approval Shareholders Meeting Announcement (if any) | N/A | ||||||||||||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
(2) Investments in Derivatives
√ Applicable □ Not applicable
Unit: RMB10 thousands
| Counterparty | Related- party relationship (Y/N) | Related-party transactions (Y/N) | Type of derivatives | Initial investment amount | Starting date | Ending date | Investment amount at the beginning of the reporting period | Amount of purchase in the reporting period | Amount of sales in the reporting period | Provision for impairment | Investment amount at the end of the reporting period | Investment amount at the end of the reporting period to net assets of the Company | Gains/ (losses) recognized during the reporting period |
| Bank | No | No | Foreign exchange forward contracts | 129,275.00 | 2020/7/20 | 2023/7/24 | 130,466.00 | N/A | N/A | - | 129,275.00 | 2.26% | -184.31 |
| Bank | No | No | Foreign exchange forward contracts | 96,956.25 | 2020/7/28 | 2023/7/24 | 97,849.50 | N/A | N/A | - | 96,956.25 | 1.69% | -138.23 |
| Bank | No | No | Foreign exchange forward contracts | 96,956.25 | 2020/7/30 | 2023/7/24 | 97,849.50 | N/A | N/A | - | 96,956.25 | 1.69% | -138.23 |
| Total | 323,187.50 | -- | -- | 326,165.00 | N/A | N/A | - | 323,187.50 | 5.64% | -460.77 | |||
| Source of funds | Self-owned funds | ||||||||||||
| Lawsuit (if applicable) | N/A | ||||||||||||
| Disclosure Date of Derivatives Investment Approval Board Announcement (if any) | March 24, 2020 | ||||||||||||
| Disclosure Date of Derivatives Investment Approval Shareholders Meeting Announcement (if any) | N/A | ||||||||||||
| Risk analysis and control measures for derivatives investment during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | (I) Risk analysis The foreign exchange hedging business is carried out by the Company based on the principles of lawfulness, prudence, safety and effectiveness, and not for speculative purposes. All foreign exchange hedging transactions are derived from normal cross-border business, but certain risks may exist in foreign exchange hedging transactions. 1. Market risk: The foreign exchange hedging business carried out by the Company and its subsidiaries mainly involves daily cross-border intermodal transportation fees and investment and financing activities denominated in foreign currencies related to the main business. The associated market risk refer to losses which may arise from changes in price of foreign exchange hedging products due to fluctuations in market prices of underlying exchange rates and interest rates. | ||||||||||||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| 2. Liquidity risk: Since all foreign exchange hedging business is conducted through financial institutions, we are subject to the risk of having to pay fees to banks due to losses in closing out positions caused by insufficient liquidity in the market. 3. Non-performance risk: The Company and its subsidiaries conduct foreign exchange hedging business mainly based on rolling forecasts for risk management. We are subject to the risk that the actual cash flow deviates from forecast, resulting in failure to fulfill obligations under relevant hedging contracts when due. 4. Other risks: In the course of business, if the person concerned fails to report and seek approval in accordance with the prescribed procedures, or fails to make records on foreign exchange hedging business accurately, timely and completely, losses may be incurred or trading opportunities may be lost. At the same time, if the person concerned fails to fully understand the terms of the transaction contract and product information, we are exposed to related legal risks and transaction losses as a result. (II) Risk control measures 1. Clarify the criteria of initiating transaction of foreign exchange hedging product: All foreign exchange hedging businesses are derived from normal cross-border business for the purpose of averting and preventing exchange rate and interest rate risk. No foreign exchange derivatives trading shall be carried out for speculative purposes. 2. Selection of products: Hedging products with simple structure, strong liquidity and controllable risk are selected to carry out foreign exchange hedging business. 3. Counterparty selection: The counterparties of the Company’s foreign exchange hedging business are large state-owned commercial banks and international banks with sound operation, good credit, long history of cooperation with the Company and good credit standing. 4. Determination of fair value of foreign exchange hedging products: The foreign exchange hedging products operated by the Company are mainly for the management of foreign exchange transactions in the predictable future period, withhigh market transparency and active trading; the transaction price and settlement unit price of which can fully reflect their fair value. The Company determines the fair value of the hedging products in accordance with the transaction data provided by or obtained from the public domain including banks and Reuters. 5. Equipped with professional staff: The Company has maintained a team of professionals with expertise in financial derivatives, responsible for the Company’s exchange rate risk management, market analysis, product research and the Company’s overall management policy recommendations, etc. 6. Establishing a comprehensive risk alarm and reporting mechanism: The Company sets risk limits for foreign exchange hedging business where transactions have been made, timely evaluates changes in risk exposure and derived gains and losses, and provides regular risk analysis report to the management and the Board of Directors. Appropriate risk assessment models or monitoring systems are used to continuously monitor and report various risks. More frequent reports are made when the market fluctuates drastically or when risks are higher. A response plan will be made promptly. 7. Separation of duties and personnel between the front end and back end is strictly implemented. Dealers cannot concurrently hold the position as accounting personnel and vice versa. | |
| Changes in market price or fair value of invested derivatives during the reporting period (the specific methods, relevant assumptions and parameters used in the | The Company’s analysis of the fair value of derivatives is based on the financial market fair value valuation report provided by the bank at month end. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| analysis of the fair value should be disclosed) | |
| Explanation of whether the accounting policies and accounting principles of the Company’s derivatives during the reporting period are significantly changed compared with the previous reporting period | No |
| Opinions of independent directors on the Company’s derivatives investment and risk control | The independent directors believed that the Company had established an internal control system for foreign exchange hedging and effective risk control measures in accordance with the requirements stipulated by relevant laws. Under the premise of complying with national laws and regulations and ensuring that the Company’s daily operation were not affected, the Company used its own funds to carry out foreign exchange hedging when appropriate, which was conducive to preventing interest rate and exchange rate risks, reducing the impact of interest rate fluctuations on the Company, in line with the interests of the Company and all shareholders and was no harm to the Company and all shareholders, especially the interests of minority shareholders. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
VII. Sale of Significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
2. Sale of significant equity
√ Applicable □ Not applicable
| Counterparty | Disposal of equity interests | Date of disposal | Transaction Price (RMB0’000) |
| Impact of the disposal of equity interests on the Company | Proportion of net profit attributable to the equity interests disposed to the Company’s total net profit | The pricing principle for disposal of the equity interests | Related party transaction | Relationship with the counterparty | Completion of the transfer of the equity interests involved | Implemented as scheduled. If not, provide the reasons and steps taken | Date of disclosure | Disclosure Index | |||||
| SF Logistics Holdings Limited | 100% equity of Golden Bauhinia Logistics Holdings Limited and its subsidiaries | May 13, 2021 | 242,427.82 | N/A | It is conductive to expanding the innovative financing channels for the Company to enhance the efficiency of cash turnover, optimize the asset and liability structure, establish an industrial-park light-asset capital operation platform and improve the Company’s cash flow | 115.82% | Pricing will be negotiated with the transferee based on the appraised value of the property assets as at the valuation benchmark date. | No | N/A | Yes | Yes | April29, 2021 and May 19, 2021 | The “Announcement on the Establishment of A Real Estate Investment Trust by a Holding Subsidiary and Its Listing on the Main Board of the Hong Kong Stock Exchange” (No. 2021-058) and “Progress Announcement on the Establishment of a Real Estate Investment Trust by a Holding Subsidiary and Its Listing on the Main Board of the Hong Kong Stock Exchange” (No. 2021-066) disclosed by the Company on the Cninfo website (http://www.cninfo.com.cn) |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
VIII. Analysis of Major Holdings and Participating Companies
√ Applicable □ Not applicable
Major subsidiaries and equity participation companies that affect the Company’s net profit by more than 10%
Unit: RMB
| Company name | Company Type | Primary Business | Registered Capital | Total Assets | Net Assets | Operating Income | Operating Profit | Net Profit |
| Shenzhen S.F. Taisen Holdings (Group) Co., Ltd. | Subsidiary | Investments in industrial businesses, investment consulting and other information consulting, supply chain management, asset management, capital management, investment management, etc. | RMB2,010 million | 58,989,386,828.76 | 33,422,205,923.35 | 1,956,676,292.94 | 67,467,644.85 | 33,382,610.81 |
| Company Name | Acquisition or Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production Operations and Performance |
| Chongqing E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Chongqing Xuefeng Zhiyuan Supply Chain Management Co., Ltd. | New establishment | No major impact |
| Chongqing Jieyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Chongqing Fengyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Chongqing Fonair Aviation Engineering Technology Co., Ltd. | New establishment | No major impact |
| EXEL Logistics (Tianjin) Co., Ltd. | New establishment | No major impact |
| EXEL Aolong Logistics (Zhanjiang) Co., Ltd. | New establishment | No major impact |
| Yirongcheng Information Service (Wuhan) Co., Ltd. | New establishment | No major impact |
| New Havi (Hubei) Supply Chain Management Co., Ltd. | New establishment | No major impact |
| Xinjiang E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Xi'an Fengle Apartment Management Co., Ltd. | New establishment | No major impact |
| Wuhan Fengyu Apartment Management Co., Ltd. | New establishment | No major impact |
| Tianjin E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Tianjin Shunxin Freight Co., Ltd. | New establishment | No major impact |
| Tianjin Bingzhi Supply Chain Management Co., Ltd. | New establishment | No major impact |
| Taizhou Jietai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Sichuan E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Sichuan Jieyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| S.F. (Chengdu) International Logistics Co., Ltd. | New establishment | No major impact |
| Shijiazhuang E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Shenyang E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Shenzhen Fengwang Holding Co., Ltd. | New establishment | No major impact |
| Shenzhen Chenfeng Industrial Investment Development Co., Ltd. | New establishment | No major impact |
| Shenzhen Fengzan Technology Co., Ltd. | New establishment | No major impact |
| Shanghai Zhihui Fenghe Trading Co., Ltd. | New establishment | No major impact |
| Shanghai E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Shanghai Xijie Supply Chain Technology Co., Ltd. | New establishment | No major impact |
| Shanghai Shunzijia Technology Co., Ltd. | New establishment | No major impact |
| Shanghai S.F. E-commerce Co., Ltd. | New establishment | No major impact |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shanghai Gejie Supply Chain Technology Co., Ltd. | New establishment | No major impact |
| Shanghai Fengji Technology Co., Ltd. | New establishment | No major impact |
| Shanxi E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Shandong E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Ningxia E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Nanning E-PLUS Information Technology Co., Ltd. | New establishment | No major impact |
| Nanchang Jietai Industrial Park Management Co., Ltd. | New establishment | No major impact |
| Luohe Fengtai Industrial Park Management Co., Ltd. | New establishment | No major impact |
| Jinhua Jietai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Jiangxi E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Jiangsu S.F. Information Service Technology Co., Ltd. | New establishment | No major impact |
| Jilin E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Huai'an Fengyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Huai'an Fengtai E-commerce Industrial Park Co., Ltd. | New establishment | No major impact |
| Heilongjiang E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Hebi Fengtai Industrial Park Asset Management Co., Ltd. | New establishment | No major impact |
| Henan E-PLUS Information Technology Co., Ltd. | New establishment | No major impact |
| Hefei E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Hefei Jiafeng Industrial Park Management Co., Ltd. | New establishment | No major impact |
| Hefei Fengyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Hainan E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Hainan S.F. International Supply Chain Management Co., Ltd. | New establishment | No major impact |
| Guizhou E-PLUS Technology Co., Ltd. | New establishment | No major impact |
| Guangzhou Fengyi Supply Chain Management Co., Ltd. | New establishment | No major impact |
| Guangzhou Fengle Apartment Management Co., Ltd. | New establishment | No major impact |
| Guangzhou Fengda Express Co., Ltd. | New establishment | No major impact |
| Gansu Yishoufa Information Technology Co., Ltd. | New establishment | No major impact |
| SF Supply Chain (Hainan) Co., Ltd. | New establishment | No major impact |
| Dongguan S.F. Information Technology Service Co., Ltd. | New establishment | No major impact |
| Dongguan Chengfeng Technology Co., Ltd. | New establishment | No major impact |
| Chengdu Shengyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Changzhou Fengyutai Enterprise Management Co., Ltd. | New establishment | No major impact |
| Beijing Yishoufa Technology Co., Ltd. | New establishment | No major impact |
| Beijing Tongchen Human Resource Service Co., Ltd. | New establishment | No major impact |
| Beijing Fengzan Technology Co., Ltd. | New establishment | No major impact |
| Bengbu S.F. Logistics Co., Ltd. | New establishment | No major impact |
| Zhentai Industrial Park Limited | New establishment | No major impact |
| Zhentai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| YouTai Investment Limited | New establishment | No major impact |
| YiJie Investment Limited | New establishment | No major impact |
| Yifeng Industrial Park Limited | New establishment | No major impact |
| Yifeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Taichen Industrial Park Limited | New establishment | No major impact |
| Taichen Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| ShunJie Investment Limited | New establishment | No major impact |
| Shunda Industrial Park Limited | New establishment | No major impact |
| Shunda Industrial Park (Hong Kong) Limited | New establishment | No major impact |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| SF INTERNATIONAL EXPRESS (MALAYSIA) SDN. BHD | New establishment | No major impact |
| SF LOGISTICS BRASIL LTDA. | New establishment | No major impact |
| SF Holding Investment 2021 Limited | New establishment | No major impact |
| SF EXPRESS SPAIN GLOBAL,S.L. | New establishment | No major impact |
| SF Express International Bangladesh Ltd. | New establishment | No major impact |
| SF Express (Mauritius) | New establishment | No major impact |
| SF EXPRESS (ITALY) S.R.L. | New establishment | No major impact |
| SF EXPRESS (HUNGARY) Kft. | New establishment | No major impact |
| Ruilifeng Industrial Park Limited | New establishment | No major impact |
| Ruilifeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Ruifeng Industrial Park Limited | New establishment | No major impact |
| Ruifeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Jietai Industrial Park Limited | New establishment | No major impact |
| Jietai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Jiafeng Industrial Park Limited | New establishment | No major impact |
| Jiafeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Hongtong Industrial Park Limited | New establishment | No major impact |
| Hongtong Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Hongtai Industrial Park Limited | New establishment | No major impact |
| Hongtai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Hengfeng Industrial Park Limited | New establishment | No major impact |
| Hengfeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Hefeng Industrial Park Limited | New establishment | No major impact |
| Hefeng Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Fengyutai Industrial Park Limited | New establishment | No major impact |
| Fengyutai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Fengruntai Industrial Park Limited | New establishment | No major impact |
| Fengruntai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Fengruikai Industrial Park Limited | New establishment | No major impact |
| Chengtai Industrial Park Limited | New establishment | No major impact |
| Chengtai Industrial Park (Hong Kong) Limited | New establishment | No major impact |
| Weishi Intenet Insurance Agency Co., Ltd. | Asset acquisition | No major impact |
| Jiangsu Senyuan Household Appliance Technology Co., Ltd. | Acquisition | No major impact |
| Flourish Harmony Holdings Company Limited | Acquisition | No major impact |
| Advance Harmony Holdings Company Limited | Acquisition | No major impact |
| Bon Way Logistics (H.K.) Company Limited | Acquisition | No major impact |
| Bon Way Trucking Company Limited | Acquisition | No major impact |
| ULTRA WISE INVESTMENT LIMITED | Acquisition | No major impact |
| SUNNY SIGHT LIMITED | Acquisition | No major impact |
| FORTUNE UP DEVELOPMENT LIMITED | Acquisition | No major impact |
| Zhengzhou Fengtai E-commerce Industrial Park Management Co., Ltd. | Sale | No major impact |
| Beijing Huabao Lutong Automobile Investment Co.,Ltd. | Sale | No major impact |
| Wuhu Fengtai E-commerce Industrial Park Management Co., Ltd. | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| GOODEAR DEVELOPMENT LIMITED | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Foshan Runzhong Industrial Investment Co., Ltd. | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| CHUI YUK HOLDINGS LTMITED | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Wuhu Industrial Park Limited | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Wuhu Fengtai (Hong Kong) Limited | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Golden Bauhinia Logistics Holdings Limited | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Foshan Industrial Park Limited | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Foshan Fengtai (Hong Kong) Limited | Sale | For details, please refer to Note 5(2) of Chapter 10 Financial Statements. |
| Zonghao Supply Chain Consulting (Shenzhen) Co., Ltd. | Cancellation | No major impact |
| EXEL Supply Chain Management (Shanghai) Co., Ltd. | Cancellation | No major impact |
| S.F. Intra-city Holding Co., Ltd. | Cancellation | No major impact |
| Shenzhen FengKong Technology Co., Ltd. | Cancellation | No major impact |
| Dunhuang Fengzhao Technology Co., Ltd. | Cancellation | No major impact |
| Dingxi Fengnong Technology Co., Ltd. | Cancellation | No major impact |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Currently, economies of scale are gradually emerging in the operations of China’s mainstream courier companies, providingobjective leeway for a decline in courier service prices. At the same time, homogeneity of service we are offering in the courier andlogistics industry is relatively high, and market competition is relatively fierce. In addition, low-price strategies have become themain means by which new industry entrants rapidly seize market share, impacting the existing competitive situation of e-commerceexpress delivery industry, and price wars are also increasing in ferocity. The Company has been building mid-to-high end marketbarriers, forging differentiated competitive advantage and price moat through timeliness and service quality. In order to meet thediversified needs of customers, the Company has actively marched into the mid-to-low end e-commerce market in recent years so asto build a complete product mix. Under the impact of competition in the e-commerce express market, the Company's expressproducts and services may face downward pricing pressure in future.Risks arising from change in new business model: In recent years, with the rapid development of information technology, theimpact of the Internet economy on all aspects of life has become increasingly obvious. In the express delivery industry, informationplatform-type enterprises have emerged. Through fast matching and effective management of information between supply anddemand, such enterprises can quickly gather and utilize crowd-sourcing personnel to deliver appropriate services for customers,which will have a certain impact on the traditional business model of the express delivery industry.Risk response: In the face of above risks, the Company has established a comprehensive risk management and control system,and is continuously improving and iterating in response to market changes. The Company tracked the macro-economy and theimpacts caused by the pandemic, focused on the analysis of its impact on our main business, and adjusted our operation strategies ina timely manner to minimise the adverse impact of changes in macro-economy and the pandemic on the Company’s business andfuture development. The Company pays close attention to and studies industry development trends, analyses the market competitionpatterns, and adopts active, effective strategies to achieve forward-looking planning and business resource distribution. The Companyadheres to the multi-dimensional development of business, constantly improves the product portfolios to achieve a differentiatedservice experience; The Company also deeply integrates the business foundation in order to achieve the resources complementationand network effectiveness for establishing long-term core competitiveness. Meanwhile, the Company attaches great importance toscience and technology investment, as it could enable product innovation, improve service quality, consolidate core competitionbarriers, and thereby supporting the long-term sustainable development of the Company’s business.
2. Policy risk
Risks arising from changes in industry regulations and industrial policies: The operation of express delivery requiresbusiness licensing and is subject to regulation by laws, administrative rules and industry standards such as the Postal Law of thePeople’s Republic of China (《邮政法》), the Administrative Measures for Express Delivery Business Licensing (《快递业务经营许可管理办法》), the Administrative Measures for Express Delivery Market (《快递市场管理办法》) and the Rules for Guiding theOperation of Express Business (《快递业务操作指导规范》). In order to support the development of the express delivery industry,competent departments at various levels have successively introduced a number of industrial support and encouragement policies.However, should major changes in or adjustments to relevant laws, regulations or industrial policies occur in the future, they mayhave an impact on the development trend and market competition landscape of the express delivery industry, which may in turn affectthe future business growth and performance of the Company.
Risk response: The Company has established research teams for state and local policies in all business units to conductin-depth analysis on relevant policies introduced and scientific predictions of future policy directions and trends in the light of overall
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
changes in the external environment. Forward-looking plans are implemented and adjusted by fully capitalizing on favorable policieswhile avoiding policy risks, hence promoting business growth.Risks from relevant state policies on environmental protection, energy conservation and emission reduction: China hasundertaked that it will strive to reach the peak of CO
emissions by 2030 and achieve carbon neutrality by 2060. It is foreseeable thatChina will issue subsequent policies on environmental protection, energy conservation and emission reduction. Such policies to bereleased may affect the service and operation pattern of express delivery companies, and may lead to increased expenses in relevantaspects such as environmental protection, energy conservation and emission reduction incurred by express delivery companies, whichmay affect the future performance of the Company. Meanwhile, if companies fail to fufill their green environmental obligations inaccordance with the laws, they will not only be liable to the relevant legal obligation, but also impair their social images.Risk response: The Company took into account the external environment and policy changes as well as developed a keeninsight into the development trend of the industry, so as to steer the direction of the industry and implement the forward-lookingdeployment and adjustment. The Company paid attention to its own impacts on the environment, therefore formulating the "SFHoldings’ White Paper for Carbon Emisson Target 2021 " (《顺丰控股碳目标白皮书2021》). By leveraging technological strengthsuch as artificial intelligence and big data, the Company adjusted the energy consumption structure, upgraded transportation andbusiness models, and then promoted the green and low-carbon reform.
3. Business risks
Risks of possible rising costs: The traditional express delivery industry is a labor-intensive industry. There are relatively largedemands for labor along various stages of operation such as collection, sorting, transportation and delivery. With decreasing rate ofpopulation growth in China, there are certain pressures on rising labor costs while investments in logistics infrastructures and otheraspects are also increasing. If the Company cannot secure enough business volume or effectively control costs in the future, it willprobably face challenges in its future earnings growth.Risk response: The Company has improved its logistics framework, innovated system component, including bringing theentire logistics process online by applying smart technologies, improving transit depots’ automation in productivity, upgrading routeplanning, using scientific and technological means to enhance efficiency and reduce manpower investment and labor costs, graduallyachieving transformation of the express delivery industry from a labor-intensive industry to a technology intensive industry. TheCompany also continues to review and optimise resource invested in all business units to expand the synergy and reuse of resourcesand enhance cost efficiency. Considering that the Company is in the critical period of new business expansion, the increase of thepredictive investment in logistics infrastructures and the in-depth integration of business framework are conducive to creatinglong-term core competiveness, and will gradually obtain scale dividends with the high-speed growth of new business.Risks from fuel price fluctuation: Transportation cost is one of the major costs of the express delivery industry, and fuel costis a component of transportation cost. Fluctuation of fuel price will have a certain impact on the profitability of express deliverycompanies. If the fuel price rises significantly in the future, the Company will experience pressure of increased costs.Risk response: The Company will further optimise layout of sortation centers, enhance scientific route planning and loadingrate of operating routes, and improve resource utilization to reduce the risk of fuel price fluctuations. Further, the Company willstrengthen promotion for use of new energy vehicles to reduce the risk of fuel price fluctuations to a certain extent. Meanwhile, theCompany has matured operation and cost monitoring mechanisms. When costs fluctuate significantly, operation plans and fuel costcontrol measures will be dynamically adjusted to reduce the negative impact of fuel cost fluctuation on the Company.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
International operation risk: As the Company strengthens the overseas networks and improves overseas service capability,the international business of the Company has maintained high-speed growth in recent years. However, international logistics servicerelying on international trade is subject to the impact of the COVID-19, international environment and other unpredictable factors.For example, the global economic development, labor union, geopolitics, national relationships, international trade and tax policies,all have experienced unprecedented changes and the uncertainties of international trade have intensified. Also, due to the continuousimpact of the COVID-19 and the different effect of the anti-epidemic policies of each country, the Company currently faceschallenges in both the transportation capacity of international routes for controlling purchase cost and stable operation capability insome countries and regions where business has been set up. If the Company fails to take effective measures to deal with this, it mayhave an adverse impact on the Company’s international business development.Risk response: The Company carries out an in-depth research on the international political and economic situation and tradedevelopment trend, to analyse international logistics competition pattern and implement forward-looking international strategicplanning and business layout. In the course of business development, we continue to track and study changes in trade policies,closely monitor the market dynamics and adjust our corresponding strategies for international business operation in a timely manner.To respond to the impact of international epidemic, the Company actively explores international transportation resources in terms ofthe sea, land, air and rail, strengthens the monitoring of operation network, and makes every effort to ensure stable and efficientcross-border services. Meanwhile, the Company increases the investment in scientific and technological resources, promotes theconstruction of international business informationization, and facilitates to make operational decisions.
4. Exchange rate fluctuation risks
Exchange rate fluctuation risks: The Company is committed to providing accessible, reliable and integrated internationalexpress delivery, logistics and supply chain solutions for domestic and foreign manufacturing companies, trading companies,cross-border e-commerce businesses and consumers. Thus far, the Company has rolled out international logistics services incountries including Singapore, South Korea, Malaysia, Japan and Thailand, and B2C and e-commerce delivery services in a numberof countries and regions. Going forward, as its overseas operations expand, businesses denominated in foreign currencies are set toaccount for an increasing share of our total business volume. Given the uncertainties in the international financial environment andfluctuations in RMB’s exchange rates, the Company’s revenue, earnings, foreign-currency assets, foreign-currency liabilities andfuture foreign-currency transactions will all be subject to appreciation or depreciation, which will in turn affect the Company’sbusiness performance or financial statements.
Risk response: The Company’s foreign exchange transactions are mainly conducted based on the actual needs of itscross-border foreign-currency businesses. To avoid and guard against risks associated with fluctuations in exchange rates and interestrates, better manage its foreign currency positions and become more competitive, the Company has established the ManagementSystem for Foreign Exchange Risk（《外汇风险管理制度》）, and conducts centralized management of foreign currency positions,under which it decides expenditure based on revenue, implements maturity matching and performs natural hedging to avoid foreignexchange risk in advance wherever possible. It also uses financial derivatives and hedging products with low default risks andcontrollable risks to lock in the costs of exchange rate and interest rate and avoid the relevant risks. All the Company’s hedgingtransactions are conducted in strict compliance with the relevant hedging principles, and are based on our normal production andbusiness activities and justified with actual business operations. All the transactions are carried out for the purpose of locking in costsand avoiding risks. The Company does not trade for speculative purposes, and operates within its authority to ensure effectiveexecution and reduce the impact of exchange rate fluctuations on its operation and earnings. In terms of counterparty selection, theCompany conducts foreign exchange hedging transactions only with large and established commercial banks home and abroad, and
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
all such transactions conform to the principles of legality, prudence, safety and effectiveness. In addition, the Company will step upefforts to study and analyse exchange rates and interest rates, closely monitor changes in the global markets, issue early warnings intime, and take countermeasures accordingly.
5. Information system risk
Information system risk: To cope with our diversified development of the Company’s business and the complex and diverseneeds of customers, the Company has built and applied various information systems and technologies. Rapid development of theindustry and changing market also pose challenge of rapid change in technology and services to the construction of core businesssystems of the Company. With the wide variety and rapid replacement of professional technologies in the Company along withemerging new technologies, changes in information technology and future business requirements may cause certain informationsystem risks. Meanwhile, despite the series of information security control mechanisms established for the large amount of dataaccumulated for years by the Company, there still exists certain human or system caused information security risks.
Risk Responses: The Company has formulated comprehensive response measures for information system risks. On the onehand, the Company continues to carry out operation and optimization of the ISO27001 information security management system andthe ISO27701 privacy information management system. The Company implements information security control and protection in allaspects according to established policies and strategies for information security, and continuously updates all procedures and systemsfor information security. It continuously strengthens risk awareness of staff and trainings for staff operation standards, developsinternal information circulation guidelines, implements rules of strong control over sensitive information, avoids unintentionalviolations, and constructs monitoring and pre-warning and response systems for abnormal behaviors, so as to eliminate informationsystem security risks in their infancy. Meanwhile, according to requirements of regulatory authorities, the Company has carried outevaluation for security classification protection of information system. Based on high standards of technology protectionrequirements, it conducts continuous and stable security intervention in the business system construction phase to improve the abilityof the clients’ service products and business systems themselves against anti-security attacks. During the operation of the informationsystem, it has established the security capability baseline (measurable cyberspace security capability evaluation), safe operationcapability (situational awareness of privacy data risks, MTTD and MTTR indicators based on offensive and defensive confrontations),DevOps security capability (DevSecOps process and tool chain), and security ecology capability (external perception and linked stopsell) to enhance the capability of the IT infrastructures to discover and defend against cyber security attacks. On the other hand, theCompany has established a more comprehensive system for prevention and control of information risks, formulated standardprocesses such as the Major Event Management Process System for IT System (《IT系统重大事件管理流程制度》) and theManagement Guidelines for Emergency Plan Formulation and Implementation of IT System (《IT系统应急预案制定与执行管理指引》) to implement closed-loop risk prevention and control in terms of pre-warning, in-process control and post-recording.Additionally, the Company has actively cooperated with the National Development and Reform Commission, the State GeneralAdministration of Posts and all levels of public security departments to combat behaviors such as black production and speculation;has actively participated in the formulation and review of various information security standards of the National Information SecurityStandards Committee, pilot work for implementation of policies; has regularly held security summits and security salons to facilitateinformation sharing with industry leaders and industry elites; and has established alliance partnership and cooperation withinformation security teams of well-known Internet and e-commerce companies for the joint construction of a safe and orderlycyberspace.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 4. Corporate Governance
I. Details about the Annual Shareholders’ General Meeting and Extraordinary Shareholders’General Meetings Held during the Reporting Period
1. Details about the shareholders’ general meeting during the reporting period
| Meeting | Meeting Type | Investor Participation % | Date Convened | Disclosure Date | Meeting Resolutions |
| First Extraordinary General Meeting of Shareholders of 2021 | Extraordinary General Meeting | 18.83% | January 27, 2021 | January 28, 2021 | “Resolutions of the First Extraordinary General Meeting of 2021” (2021-011)(http://www.cninfo.com.cn) |
| Second Extraordinary General Meeting of Shareholders of 2021 | Extraordinary General Meeting | 69.84% | March 2, 2021 | March 3, 2021 | “Resolutions of the Second Extraordinary General Meeting of 2021” (2021-025)(http://www.cninfo.com.cn) |
| 2020 Annual General Meeting | Annual General Meeting | 69.19% | April 9, 2021 | April 10, 2021 | “2020 Annual General Meeting Resolutions” (2021-049) (http://www.cninfo.com.cn) |
| Third Extraordinary General Meeting of Shareholders of 2021 | Extraordinary General Meeting | 67.63% | June 15, 2021 | June 16, 2021 | “Resolutions of the Third Extraordinary General Meeting of 2021” (2021-080)(http://www.cninfo.com.cn) |
| Name | Position(s) held | Type | Date | Reason |
| Sun Xun | Supervisor, Chairman of the Supervisory Committee | Resigned | March 16, 2021 | Resigned as supervisor and Chairman of the Supervisory Committee due to personal position adjustment. |
| Li Li | Employee representative supervisor | Resigned | March 16, 2021 | Resigned as supervisor due to personal position adjustment. |
| Chu Yan | Employee representative supervisor | Elected | April 8, 2021 | Elected as the employee representative supervisor to fill vacancy |
| Wang Jia | Supervisor | Elected | April 9, 2021 | Elected as supervisor to fill vacancy |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| NG Wai Ting | Financial head, deputy general manager | Resigned | April 24, 2021 | Resigned as the financial head and deputy general manager due to personal reason, but still holds the position of director. |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 5. Environmental and Social Responsibilities
I. Environmental protection
Did the listed Company and its subsidiaries belong to the major pollutant discharge units announced by the Ministry of Ecology andEnvironment？
□ Yes √ No
Other environmental related information
SF is deeply aware of the significance of green practice. As an enterprise with a sense of social responsibility, SF has beencommitted to building sustainable supply chain services.We released the SF Holding Carbon Target White Paper 2021 on the WorldEnvironment Day on June 5, 2021, and formulated ambitious carbon emission reduction targets and strategic plans based on pastcarbon reduction achievements. We have set two carbon reduction targets. Firstly, SF will drive carbon green evolution through itstechnology advantages, with a target to improve carbon efficiency by 55% in 2030 compared to 2021. Secondly, in order to constructclimate-friendly express delivery, the carbon footprint of each express parcel will be reduced by 70% in 2030 compared to 2021. Wehave formulated a 10-year carbon reduction action plan to promote the achievement of the targets. Based on business growthforecasts, the amount of carbon emissions that need to be reduced will increase year by year. We intend to achieve carbon reductiongoals by adjusting the energy structure, upgrading transportation and business models, thorough application of technological means,and other means such as forestry carbon sinks and carbon trading.In practice, SF has continuously injected technoloy in its operation, promoted the green and low-carbon reform with the powerof science and technology, improved and reshaped the logistics link of supply chain, subsequently made great achievements inpackaging, transportation, transport and other links. As of the first half of 2021, electronic waybills basically achieved full coverage,the packaging ratio for thin tape reached 99.88%, and non-secondary packaging ratio for e-commerce express reached 99.37%.
We also hopes that the green value extends to the supply chain, so it advocates and joins hands with upstream and downstreampartners and customers to promote the green transformation and upgrading of the industry through technological empowerment, andjointly assume the responsibility of protecting the earth, becoming partners to achieve zero carbon emissions.
II. Social Responsibilities
Empowering rural revitalization through industry services: SF Holding is the first domestic logistics company to deliverfresh agricultural products directly from farmers to urban consumers in the form of express delivery. Since then, we have establisheda business model from "field" to "mouth". For a long time, a large number of high-quality agricultural products have encounteredproblems in the delivery process such as easy to damage, difficulty in packaging, prolonged transportation process, and inability toform large scale. They have also encountered problems in marketing process such as few channels, single form, hard to find largequantity of customers, and inability to have brand effect. Over time, farmers are hard to expand their income, and impossible for theagricultural products to achieve profitability. SF Holding adhered to the concept of distributing quality agricultural products acrossthe country and promoting better brands of agricultural products.
Through the construction of collection points of agricultural products in the field, R&D investment in mobile sorting vehiclesto adapt to small-batch allocation, construction of fresh products’ pretreatment centers close to the place of origin, tailored design for
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
the packaging of various fresh products, deployment of specialized refrigerated vehicles during the harvest season of characteristicagricultural products, exclusive all-cargo aircrafts, and other transportation resources, SF Holding continued to refresh the deliveryspeed of agricultural products in circulations, and to innovate fresh-preserving methods in delivery processes, helping farmers totransport quality agricultural products out of the mountain, to the tables of thousands of households. With a robust logistics network,top-notch packaging technology, and superior delivery capability, SF Holding overcame each thorny category of transportation,including hairy crabs, beef and mutton, live fish, seafood, lychee, strawberry, peach, matsutake, etc., to realize a direct deliverymodel with Chinese characteristics and nationwide coverage. SF Holding insisted to diversify the range of its services and businessscenarios through innovative logistics models, efficiency enhancement through cost reduction, and market pricing. In addition toproviding efficient logistics and distribution, SF Holding actively assisted local governments in building regional public brands tomake more agricultural products known to consumers, such as traceability and testing of agricultural residues, for rural revitalization,allowing the Chinese to know, taste, and recognize more local brands of characteristic agricultural products.Up to now, the upstream service network of agricultural products assisted by SF Holding has covered more than 2,800 citiesand more than 4,000 fresh products across the country. In the first half of 2021, SF Holding delivered 2,139 tons and 417 milliondeliveries of characteristic agricultural products, generating an income of around RMB 21.2 billion to local farmers.2021 is beginning of the "14th Five-Year Plan", which is also a year for rural revitalization acceleration. To actively respond tothe national strategy, continue to consolidate and expand the poverty alleviation achievements, and effectively cohesion with ruralrevitalization, SF Holding targeted all 832 national-level poverty counties and more than 240 provincial-level poverty counties thathave been lifted out of poverty to continuously promote the special assistance and subsidy program for rural revitalization. Wecontinue to invest human resources, money, and supplies to help poverty-stricken villages achieve sustainable development to helppoverty-stricken villages achieve sustainability develop.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 6. Significant Events
I. Commitments made by the Company’s actual controllers, shareholders, related parties,purchasers, and others that were fulfilled during the reporting period and those not fulfilledas of the end of the reporting period
□Applicable √ Not applicable
II. Status of Capital of the Listed Company Used for Non-operating Purposes by theControlling Shareholder and Other Related Parties
□Applicable √ Not applicable
III. Illegal Provision of Guarantees for External Parties
□Applicable √ Not applicable
IV. Details Regarding Engagement and Disengagement of Auditor
Is the semi-annual financial report audited?
□Yes √ No
The Company’s semi-annual financial report has not been audited.
V. Explanations provided by the Board of Directors, the Supervisory Committee, regardingthe “non-standard audit report” issued by the auditor for the reporting period
□Applicable √ Not applicable
VI. Explanations provided by the Board of Directors regarding the “non-standard auditreport” issued by the auditor for the last year
□Applicable √ Not applicable
VII. Bankruptcy and Reorganization
□Applicable √ Not applicable
There was no such situation for the Company during the reporting period.VIII. Lawsuit
Significant Lawsuit or Arbitration
□Applicable √ Not applicable
There was no significant lawsuit or arbitration during the reporting period.
Other legal cases
□ Applicable √ Not applicable
As of June 30, 2021, other legal proceedings of the listed Company and its subsidiaries were as follows:
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
1. The total amount involved in legal cases resolved during the reporting period was RMB101.30 million.
2. Cases not yet resolved during the reporting period include: Cases involving the Company and its subsidiaries as defendantsamounted to RMB196.82 million, accounting for 0.35% of audited net assets attributable to shareholders of the parent Company atthe end of 2020. The above-mentioned litigation matters include a number of independent traffic accident cases and transportationclaims with small amounts involved. The Company and its subsidiaries have already purchased commercial insurance for operatingvehicles, transportation and other business activities. Based on the historical experience, the insurance purchased can basically coverthe losses caused by the case. Cases involving the Company and its subsidiaries as plaintiffs amounted to RMB347.74 million,accounting for 0.62% of audited net assets attributable to shareholders of the parent Company at the end of 2020. The described legalproceedings will not have a material adverse effect on the Company’s financial status and ability to continue operations.IX. Punishment and rectification
□Applicable √ Not applicable
X. Integrity of the Company, its controlling shareholders, and actual controller
□Applicable √ Not applicable
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
XI. Significant related-party transactions
1. Related-party transactions relevant to routine operations
√Applicable □Not applicable
| Related Party | Relationship | Type of related party transaction | Details of related-partytransaction | Pricing principle of the related party transaction | Transaction price | Transaction amount (10 thousands RMB) | Proportion of same category of transactions | Approved transaction quota (10 Thousands RMB) | Was the approved quota exceeded？ | Related-party transaction settlement method | SimilarMarket price | Disclosure date | Disclosure index |
| Mingde Holding and its subsidiaries | Controlling shareholder of the Company | Provide services to related parties | Courier service, communication service, technology developmentservice, etc. | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 6,878.94 | 0.08% | 30,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| Mingde Holding and its subsidiaries | Controlling shareholder of the Company | Receive services from related parties | Agent service fees, etc. | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 10,222.31 | 0.13% | 45,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| Mingde Holding and its subsidiaries | Controlling shareholder of the Company | Purchase of goods / equipment from related parties | Purchase of goods / equipment | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 11,655.63 | 0.15% | 30,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Mingde Holding and its subsidiaries | Controlling shareholder of the Company | Lease of premises from related parties | Lease of premises | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 7,367.57 | 0.09% | 10,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| CR-SF International Express Co., Ltd. | A senior manager of the Company serves as adirector of CRSF International Express Co., Ltd. | Provide services to related parties | Transportation services | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 9,211.67 | 0.10% | 55,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| CR-SF International Express Co., Ltd. | A senior manager of the Company serves as a director of CRSF International Express Co., Ltd. | Receive services from related parties | Transportation services | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 29,123.19 | 0.37% | 90,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| M China Management Limited and its subsidiaries and its franchisees | A director of the Company serves as a director of the parent company of M China Management Limited | Provide services to related parties | Supply chain service and distribution service | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 76,808.54 | 0.87% | 155,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | January 8,2021 | Announcement on the“Proposal on Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-007) (http://www.cninfo.com.cn) |
| China International Marine Containers (Group) Co., Ltd. and its subsidiaries | A director of the Company serves as a director of China International Marine Containers (Group) Co., Ltd. | Purchase of goods / equipment from related parties | Purchase of equipment | Fair pricing based on market prices in accordance with the principle of independent transactions | Contractprice | 56,422.72 | 0.71% | 140,000.00 | No | Settlement based on the settlement period and terms in the contract | N/A | May 29,2021 | Announcement on the“Proposal on Increasing the Estimated Daily Related-party Transaction Amount in 2021” disclosed at CNINFO (Announcement No. 2021-074) (http://www.cninfo.com.cn) |
| Total | -- | -- | 207,690.57 | -- | 555,000.00 | -- | -- | -- | -- | -- | |||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Details of large amount of sales returns | Nil |
| Actual performance in the reporting period versus predicted total amount of daily related-party transactions, by types (if any) | The Company’s tenth meeting of the fifth Board of Directors on January 7,2021 and the First Extraordinary General Meeting of Shareholders of 2021 on January 27,2021 reviewed and approved the “Proposal on Estimated Daily Related-party Transaction Amount in 2021.” Also, the Company’s sixteenth meeting of the fifth Board of Directors on May 28,2021 reviewed and approved the “Proposal on Increasing the Estimated Daily Related-party Transaction Amount in 2021.”The amount of the aforementioned related-party transactions did not exceed the approved amount. |
| Reason for significant difference between the transaction price and the market price (if applicable) | N/A |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
2. Related-party transactions relevant to purchases and sales of assets or equities
□Applicable √ Not applicable
No related-party transactions relevant to purchases and sales of assets or equities during the reporting period.
3. Related-party transactions with joint investments
□Applicable √ Not applicable
No related-party transactions with joint investments during the reporting period.
4. Credits and liabilities with related parties
□Applicable√ Not applicable
No credits and liabilities with related parties in the reporting period.
5. Transactions with related financial companies and financial companies controlled by the Company
□Applicable √ Not applicable
No deposits, loans, credits or other financial business between the Company and the related financial companies and financialcompanies controlled by the Company and related parties.
6. Other significant related-party transactions
√ Applicable □Not applicable
(1) Waiver of preemptive rights on the capital increase of an investee company
In order to expand the network layout, quickly seize an advantageous position in the last-mile express logistics market, providebetter services and experience to consumers, and improve efficiency, Hive Box Holdings Limited (“Hive Box”), an investee companyof the Company, intended to introduce strategic investors for financing US$400 million(Hereinafter referred to as "This Financing").Original shareholders of Hive Box will not participate in the subscription for new shares. After the completion of This Financing, theCompany’s shareholdings in Hive Box will be diluted from 10.06% to 8.73%.In view of the fact that This Financing involves the Company waiving their preemptive rights on the capital increase of HiveBox, according to the Stock Listing Rules of Shenzhen Stock Exchange and other related regulations, Hive Box is a related party ofthe Company and therefore the Company’s waiver of preemptive rights on the capital increase of its investee company constitutes arelated party transaction.On January 7, 2021 , the Company’s waiver of preemptive rights on the capital increase of its investee company Hive Box wasreviewed and approved at the tenth meeting of the fifth Board of Directors and the tenth meeting of the fifth board of supervisors ofthe Company respectively, the contents of which are detailed in the Company’s announcements (Announcement No.2021-004,2021-005,2021-006) disclosed on CNINFO.
(2) Related party transactions on capital increase to SF Intra-city
In order to accelerate the implementation of the last mile strategy, strengthen barriers to competition and further enhance thecore competitiveness of the Company, the Company intends to contribute increased capital to Hangzhou SF Intra-city Industrial Co.,Ltd.(“SF Intra-city”), a subsidiary, through Taisen Holding, a wholly-owned subsidiary, and Taisen Holding intends to enter into the
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Capital Increase Agreement with SF Intra-city, of which both parties agree that the amount of the capital increase is RMB409 million.Other shareholders of SF Intra-city will not participate in the subscription of the additional shares. Upon completion of the capitalincrease, the Company's aggregate shareholding in SF Intra-city will increase from 65.46% to 66.76%.In light of that Zhang Yichen has been appointed as a representative for the executive partner of Beijing Xinrunheng EquityInvestment Partnership (Limited Partnership) (“Beijing Xinrunheng”), a shareholder of SF Intra-city, and he concurrently serves as adirector of the Company. According to the Stock Listing Rules of Shenzhen Stock Exchange and other related regulations, BeijingXinrunheng is a related party of the Company and the capital increase to subsidiary constitutes a related party transaction.On March 17, 2021, the capital increase to subsidiary was considered and approved at the 12th meeting of the 5th session of theBoard and the 12th meeting of the 5th session of the board of supervisors. The contents of which are detailed in the Company’sannouncement (2021-027, 2021-028, 2021-036) disclosed on Cninfo.
Major related party transactions were disclosed on the following websites:
| Announcement | Disclosure Date | Disclosure Website |
| Announcement on the Resolution of the 10th Meeting of the 5th Session of the Board (2021-004) | January 8, 2021 | http://www.cninfo.com.cn |
| Announcement on the Resolution of the 10th Meeting of the 5th Session of the Board of Supervisors (2021-005) | January 8, 2021 | http://www.cninfo.com.cn |
| Announcement on Waiver of Preemptive Rights on Capital Increase of an Investee Company and Related Party Transaction (2021-006) | January 8, 2021 | http://www.cninfo.com.cn |
| Announcement on the Resolution of the 12th Meeting of the 5th Session of the Board (2021-027) | March 18, 2021 | http://www.cninfo.com.cn |
| Announcement on the Resolution of the 12th Meeting of the 5th Session of the Board of Supervisors (2021-028) | March 18, 2021 | http://www.cninfo.com.cn |
| Announcement on Capital Increase to Subsidiary and Related Party Transaction(2021-036) | March 18, 2021 | http://www.cninfo.com.cn |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
2. Significant guarantees
√ Applicable □ Not applicable
Unit: RMB10 thousands
| The listed Company and its subsidiaries’ guarantees to external parties (Guarantees to subsidiaries are not included) | ||||||||||
| Guarantee party | Disclosure date of Quota announcement | Amount of guaranteed Quota approved | Actual date of occurrence | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter-guarantee (if any) | Period of guarantee | Executed？ | Guarantee for a related party？ |
| DHL Weiheng (Zhuhai) Supply Chain Management Co., Ltd. | 2020/3/24 | 14,700.00 | 2020/12/31 | 12,642.00 | Joint liability guarantee | Zhuhai project land | Yes | 2020/12/31-2033/12/23 | No | No |
| Total guarantee quota approved for external parties during the reporting period (A1) | 10,000.00 | Total actual amount of guarantees for external parties during the reporting period (A2) | 0.00 | |||||||
| Total guarantee quota approved for external parties at the end of the reporting period (A3) | 339,260.00 | Total actual guarantee balance for external parties at the end of the reporting period (A4) | 12,642.00 | |||||||
| The listed Company’s guarantees to subsidiaries | ||||||||||
| Guarantee party | Disclosure date of Quota announcement | Amount of guaranteed Quota approved | Actual date of occurrence | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter-guarantee (if any) | Period of guarantee | Executed？ | Guarantee for a related party？ |
| SF HOLDING INVESTMENT LIMITED | 2017/12/28 | 323,187.50 | 2018/7/26 | 323,187.50 | Joint liability guarantee | None | None | 2018/7/26-2023/7/26 | No | No |
| SF HOLDING INVESTMENT LIMITED | 2019/1/4 | 600,000.00 | 2020/2/20 | 452,462.50 | Joint liability guarantee | None | None | 2020/2/20-2030/2/20 | No | No |
| Total guarantee quota approved for subsidiaries during the reporting period (B1) | 3,803,180.00 | Total actual amount of guarantees for subsidiaries during the reporting period (B2) | 0.00 | |||||||
| Total guarantee quota approved for the subsidiaries at the end of the reporting period (B3) | 4,578,830.00 | Total actual guarantee balance for subsidiaries at the end of the reporting period (B4) | 775,650.00 | |||||||
| Subsidiary’s guarantees to subsidiaries | ||||||||||
| Guarantee party | Disclosure date of Quota announcement | Amount of guaranteed Quota approved | Actual date of occurrence | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter-guarantee (if any) | Period of guarantee | Executed？ | Guarantee for a related party？ |
| Tianjin SF Fengtai E-commerce Industrial Park Co., Ltd. | 2018/3/14 | 28,000.00 | 2018/10/19 | 1,000.00 | Joint liability guarantee | Tianjin SF Fengtai project land | None | 2018/10/19-2021/4/20 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Tianjin SF Fengtai E-commerce Industrial Park Co., Ltd. | 2018/3/14 | 28,000.00 | 2018/10/19 | 3,877.00 | Joint liability guarantee | Tianjin SF Fengtai project land | None | 2018/10/19-2033/10/19 | No | No |
| Tianjin SF Fengtai E-commerce Industrial Park Co., Ltd. | 2018/3/14 | 28,000.00 | 2018/10/19 | 2,200.00 | Joint liability guarantee | Tianjin SF Fengtai project land | None | 2018/11/9-2033/10/19 | No | No |
| Tianjin SF Fengtai E-commerce Industrial Park Co., Ltd. | 2018/3/14 | 28,000.00 | 2018/10/19 | 1,100.00 | Joint liability guarantee | Tianjin SF Fengtai project land | None | 2018/12/19-2033/10/19 | No | No |
| Tianjin SF Fengtai E-commerce Industrial Park Co., Ltd. | 2018/3/14 | 28,000.00 | 2018/10/19 | 2,150.00 | Joint liability guarantee | Tianjin SF Fengtai project land | None | 2019/1/28-2033/10/19 | No | No |
| Shunyuan Financial Lease (Tianjin) Co., Ltd. | 2019/3/16 | 70,000.00 | 2019/4/22 | 2,000.00 | Joint liability guarantee | None | None | 2019/5/10-2021/4/20 | Yes | No |
| Shunyuan Financial Lease (Tianjin) Co., Ltd. | 2019/3/16 | 70,000.00 | 2019/4/22 | 12,000.00 | Joint liability guarantee | None | None | 2019/5/10-2024/1/24 | No | No |
| HAVI Logistics (Dongguan) Co., Ltd. | 2019/3/16 | 6,400.00 | 2019/5/10 | 4,500.00 | Joint liability guarantee | None | None | 2019/5/10-2021/4/18 | Yes | No |
| SF Holding Limited | 2020/3/24 | 824,760.00 | 2020/5/25 | 8,325.75 | Joint liability guarantee | None | None | 2020/5/25-2021/6/30 | Yes | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2019/3/16 | 1,000.00 | 2020/4/14 | 1,000.00 | Joint liability guarantee | None | None | 2020/4/23-2021/4/23 | Yes | No |
| Shenzhen Shunlu Air Freight Forwarding Co., Ltd. | 2019/3/16 | 1,000.00 | 2020/4/14 | 1,000.00 | Joint liability guarantee | None | None | 2020/4/22-2021/4/22 | Yes | No |
| SF Holding Limited | 2020/3/24 | 570,760.00 | 2020/11/6 | 16,651.50 | Joint liability guarantee | None | None | 2020/11/6-2021/6/2 | Yes | No |
| SF Holding Limited | 2020/3/24 | 570,760.00 | 2020/11/27 | 16,651.50 | Joint liability guarantee | None | None | 2020/11/27-2021/6/2 | Yes | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2018/3/14 | 1,500.00 | 2018/10/10 | 27.74 | Joint liability guarantee | None | None | 2018/10/10-2021/7/30 | No | No |
| Shanghai Fengtaiyuanxing Property Management Service Co., Ltd. | 2018/3/14 | 10,000.00 | 2018/9/1 | 4,578.29 | Joint liability guarantee | None | None | 2018/9/1-2021/8/31 | No | No |
| SF Airlines Company Limited | 2018/3/14 | 58,000.00 | 2018/12/25 | 2,500.00 | Joint liability guarantee | None | None | 2019/2/7-2021/2/7 | Yes | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 8,200.00 | 2019/4/26 | 12.61 | Joint liability guarantee | None | None | 2019/4/26-2021/5/15 | Yes | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 8,200.00 | 2019/5/23 | 83.26 | Joint liability guarantee | None | None | 2019/5/23-2022/5/31 | No | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 8,200.00 | 2019/5/23 | 140.37 | Joint liability guarantee | None | None | 2019/5/23-2022/5/31 | No | No |
| Changchun Fengtai E-commerce Industrial Park Management Co., Ltd. | 2019/3/16 | 600.00 | 2019/7/16 | 209.00 | Joint liability guarantee | None | None | 2019/7/16-2021/7/23 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 13,200.00 | 2019/7/4 | 24.59 | Joint liability guarantee | None | None | 2019/7/4-2021/2/19 | Yes | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2019/8/23 | 5,000.00 | Joint liability guarantee | None | None | 2019/8/23-2021/8/15 | No | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2019/8/22 | 3,000.00 | Joint liability guarantee | None | None | 2019/8/22-2021/8/15 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2019/3/16 | 2,500.00 | 2019/9/3 | 30.00 | Joint liability guarantee | None | None | 2019/9/3-2021/1/31 | Yes | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 13,200.00 | 2019/10/2 | 19.98 | Joint liability guarantee | None | None | 2019/10/2-2022/7/14 | No | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 13,200.00 | 2019/10/2 | 10.48 | Joint liability guarantee | None | None | 2019/10/2-2021/8/25 | No | No |
| Weihai S.F. Express Co., Ltd. | 2019/3/16 | 100.00 | 2019/11/15 | 1.00 | Joint liability guarantee | None | None | 2019/11/15-2021/1/31 | Yes | No |
| Weihai S.F. Express Co., Ltd. | 2019/3/16 | 100.00 | 2019/11/15 | 1.00 | Joint liability guarantee | None | None | 2019/11/15-2021/1/31 | Yes | No |
| DSC Logistics (Beijing) Co., Ltdnote1 | 2019/3/16 | 5,100.00 | 2019/12/2 | 53.21 | Joint liability guarantee | None | None | 2019/12/2-2021/2/28 | Yes | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2019/3/16 | 5,100.00 | 2019/12/27 | 0.31 | Joint liability guarantee | None | None | 2019/12/27-2021/2/28 | Yes | No |
| S.F. EXPRESS (CHINA) LIMITED | 2019/3/16 | 4,000.00 | 2019/12/30 | 8.33 | Joint liability guarantee | None | None | 2019/12/30-2021/1/4 | Yes | No |
| Shenzhen Fengtai E-commerce Industrial Park Property Service Co., Ltd. | 2019/3/16 | 3,700.00 | 2019/8/1 | 3,342.61 | Joint liability guarantee | None | None | 2019/8/1-2022/7/31 | No | No |
| Yiwu Fengyutai Enterprise Management Co., Ltd. | 2019/3/16 | 1,400.00 | 2019/8/1 | 1,239.44 | Joint liability guarantee | None | None | 2019/8/1-2022/7/31 | No | No |
| Huai'an Fengtai Enterprise Management Co., Ltd. | 2019/3/16 | 400.00 | 2019/8/1 | 315.54 | Joint liability guarantee | None | None | 2019/8/1-2022/7/31 | No | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2019/3/16 | 11,900.00 | 2020/1/17 | 36.77 | Joint liability guarantee | None | None | 2020/1/17-2021/1/20 | Yes | No |
| S.F. EXPRESS (CHINA) LIMITED | 2019/3/16 | 4,000.00 | 2020/1/8 | 83.26 | Joint liability guarantee | None | None | 2020/1/8-2021/1/14 | Yes | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2019/3/16 | 400.00 | 2020/1/19 | 58.44 | Joint liability guarantee | None | None | 2020/1/19-2021/1/10 | Yes | No |
| Xinjiang SF Express Co.,LTD. | 2019/3/16 | 100.00 | 2020/1/19 | 2.00 | Joint liability guarantee | None | None | 2020/1/19-2021/1/17 | Yes | No |
| Jiangsu S.F. Express Co., Ltd. | 2019/3/16 | 300.00 | 2020/1/20 | 67.36 | Joint liability guarantee | None | None | 2020/1/20-2021/1/10 | Yes | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2019/3/16 | 2,000.00 | 2020/1/17 | 5.23 | Joint liability guarantee | None | None | 2020/1/17-2021/2/28 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2019/3/16 | 11,900.00 | 2020/1/10 | 120.13 | Joint liability | None | None | 2020/1/10-2021/2/28 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| TIANJIN S.F. EXPRESS CO., LTD. | 2019/3/16 | 800.00 | 2020/1/17 | 80.90 | Joint liability guarantee | None | None | 2020/1/17-2021/12/31 | No | No |
| Wenzhou Shunheng Express Co., Ltd. | 2019/3/16 | 200.00 | 2020/1/17 | 110.00 | Joint liability guarantee | None | None | 2020/1/17-2021/1/10 | Yes | No |
| Guangxi ShunFeng Express Co.,Ltd. | 2019/3/16 | 200.00 | 2020/2/19 | 100.00 | Joint liability guarantee | None | None | 2020/2/19-2021/1/31 | Yes | No |
| Guizhou S.F. Express Co., Ltd. | 2019/3/16 | 200.00 | 2020/2/19 | 12.74 | Joint liability guarantee | None | None | 2020/2/19-2021/2/28 | Yes | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2020/2/24 | 2.00 | Joint liability guarantee | None | None | 2020/2/24-2021/2/21 | Yes | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2020/2/24 | 22.03 | Joint liability guarantee | None | None | 2020/2/24-2021/3/6 | Yes | No |
| Yantai S.F. Express Co., Ltd. | 2019/3/16 | 200.00 | 2020/2/24 | 65.00 | Joint liability guarantee | None | None | 2020/2/24-2021/1/31 | Yes | No |
| Zhanjiang S.F. Express Co., Ltd. | 2019/3/16 | 50.00 | 2020/2/19 | 25.00 | Joint liability guarantee | None | None | 2020/2/19-2021/8/5 | No | No |
| Chongqing Huiyifeng Logistics Co., Ltd. | 2019/3/16 | 2,800.00 | 2020/2/14 | 1,500.00 | Joint liability guarantee | None | None | 2020/2/14-2021/1/21 | Yes | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2020/3/3 | 16.64 | Joint liability guarantee | None | None | 2020/3/3-2021/2/24 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2019/3/16 | 11,900.00 | 2020/3/5 | 600.00 | Joint liability guarantee | None | None | 2020/3/5-2021/2/28 | Yes | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2019/3/16 | 2,500.00 | 2020/3/5 | 100.00 | Joint liability guarantee | None | None | 2020/3/5-2021/1/31 | Yes | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2019/3/16 | 1,900.00 | 2020/3/5 | 50.00 | Joint liability guarantee | None | None | 2020/3/5-2021/2/28 | Yes | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2019/3/16 | 2,100.00 | 2020/3/16 | 100.00 | Joint liability guarantee | None | None | 2020/3/16-2021/4/15 | Yes | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2019/3/16 | 2,100.00 | 2020/3/16 | 80.00 | Joint liability guarantee | None | None | 2020/3/16-2021/6/30 | Yes | No |
| S. F. Express (Shenyang) Co., Ltd | 2019/3/16 | 600.00 | 2020/3/16 | 45.37 | Joint liability guarantee | None | None | 2020/3/16-2021/3/9 | Yes | No |
| Beijing S.F. Express Co., LTD. | 2019/3/16 | 1,500.00 | 2020/3/16 | 100.00 | Joint liability guarantee | None | None | 2020/3/16-2021/4/20 | Yes | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2019/3/16 | 5,900.00 | 2020/3/19 | 20.00 | Joint liability guarantee | None | None | 2020/3/19-2021/3/31 | Yes | No |
| S.F. Express Co., Ltd. | 2019/3/16 | 25,000.00 | 2020/3/3 | 500.00 | Joint liability guarantee | None | None | 2020/3/3-2021/3/1 | Yes | No |
| S.F. EXPRESS (CHINA) LIMITED | 2019/3/16 | 4,000.00 | 2020/3/19 | 49.95 | Joint liability guarantee | None | None | 2020/3/19-2021/3/31 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Chengdu Shunyifeng Pharmaceutical Co., Ltd. | 2019/3/16 | 100.00 | 2020/3/20 | 43.63 | Joint liability guarantee | None | None | 2020/3/20-2021/3/12 | Yes | No |
| Zhejiang Shunlu Logistics Co.,Ltd. | 2019/3/16 | 5,000.00 | 2020/3/30 | 350.00 | Joint liability guarantee | None | None | 2020/3/30-2021/3/12 | Yes | No |
| Xi'an Shunlu Logistics Co., Ltd. | 2019/3/16 | 1,300.00 | 2020/3/30 | 230.90 | Joint liability guarantee | None | None | 2020/3/30-2021/3/27 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2019/3/16 | 500.00 | 2020/3/26 | 5.00 | Joint liability guarantee | None | None | 2020/3/26-2021/1/31 | Yes | No |
| S.F. Express Co., Ltd. | 2019/3/16 | 25,000.00 | 2020/3/23 | 3,000.00 | Joint liability guarantee | None | None | 2020/3/23-2021/3/11 | Yes | No |
| S.F. Express (Huizhou) Co., Ltd. | 2019/3/16 | 450.00 | 2020/3/23 | 19.57 | Joint liability guarantee | None | None | 2020/3/23-2021/6/30 | Yes | No |
| SF Airlines Company Limited | 2019/3/16 | 26,000.00 | 2020/3/23 | 57.77 | Joint liability guarantee | None | None | 2020/3/23-2021/3/12 | Yes | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2019/3/16 | 2,000.00 | 2020/3/23 | 22.84 | Joint liability guarantee | None | None | 2020/3/23-2021/2/28 | Yes | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2019/3/16 | 13,200.00 | 2020/3/25 | 64.64 | Joint liability guarantee | None | None | 2020/3/25-2021/5/26 | Yes | No |
| SF-Express(Ningxia)Co.,Ltd | 2019/3/16 | 200.00 | 2020/3/31 | 100.00 | Joint liability guarantee | None | None | 2020/3/31-2021/1/31 | Yes | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2019/3/16 | 2,700.00 | 2020/4/3 | 173.39 | Joint liability guarantee | None | None | 2020/4/3-2022/7/31 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2019/3/16 | 2,700.00 | 2020/4/3 | 328.86 | Joint liability guarantee | None | None | 2020/4/3-2022/7/31 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2019/3/16 | 2,700.00 | 2020/4/3 | 500.00 | Joint liability guarantee | None | None | 2020/4/3-2023/4/3 | No | No |
| XI`AN S.F EXPRESS CO.,LTD | 2019/3/16 | 600.00 | 2020/4/10 | 56.87 | Joint liability guarantee | None | None | 2020/4/10-2021/3/19 | Yes | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2019/3/16 | 1,900.00 | 2020/4/15 | 28.39 | Joint liability guarantee | None | None | 2020/4/15-2021/6/30 | Yes | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/4/28 | 70.35 | Joint liability guarantee | None | None | 2020/4/28-2022/9/30 | No | No |
| S.F. EXPRESS (AUSTRALIA) PTY LTD | 2020/3/24 | 1,500.00 | 2020/4/21 | 19.49 | Joint liability guarantee | None | None | 2020/4/21-2021/3/31 | Yes | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/4/29 | 10.00 | Joint liability guarantee | None | None | 2020/4/29-2021/4/21 | Yes | No |
| Chengdu Taishun Logistics Co.,Ltd. | 2020/3/24 | 2,000.00 | 2020/4/28 | 100.00 | Joint liability guarantee | None | None | 2020/4/28-2021/1/31 | Yes | No |
| FS ELECTRONIC TECHNOLOGY CO., LIMITED | 2020/3/24 | 1,000.00 | 2020/4/16 | 288.57 | Joint liability guarantee | None | None | 2020/4/16-2021/7/31 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2020/4/29 | 64.96 | Joint liability | None | None | 2020/4/29-2021/4/21 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Hebei S.F. Express Co., Ltd. | 2020/3/24 | 400.00 | 2020/4/16 | 12.68 | Joint liability guarantee | None | None | 2020/4/16-2021/4/10 | Yes | No |
| Hubei S.F. Transportation Co., Ltd. | 2020/3/24 | 700.00 | 2020/4/28 | 323.29 | Joint liability guarantee | None | None | 2020/4/28-2021/4/15 | Yes | No |
| Jiangxi S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/4/16 | 223.43 | Joint liability guarantee | None | None | 2020/4/16-2021/4/10 | Yes | No |
| NINGBO SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 3,000.00 | 2020/4/16 | 550.00 | Joint liability guarantee | None | None | 2020/4/16-2021/5/7 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/4/16 | 30.00 | Joint liability guarantee | None | None | 2020/4/16-2021/1/31 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/4/29 | 309.71 | Joint liability guarantee | None | None | 2020/4/29-2021/4/21 | Yes | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 3,000.00 | 2020/4/26 | 107.41 | Joint liability guarantee | None | None | 2020/4/26-2021/4/15 | Yes | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/23 | 400.00 | Joint liability guarantee | None | None | 2020/4/23-2021/1/31 | Yes | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/29 | 500.00 | Joint liability guarantee | None | None | 2020/4/29-2021/4/26 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/16 | 230.00 | Joint liability guarantee | None | None | 2020/4/16-2021/4/30 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/29 | 500.00 | Joint liability guarantee | None | None | 2020/4/29-2021/3/27 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/29 | 500.00 | Joint liability guarantee | None | None | 2020/4/29-2021/5/5 | Yes | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/4/23 | 60.00 | Joint liability guarantee | None | None | 2020/4/23-2021/4/14 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/4/16 | 2,000.00 | Joint liability guarantee | None | None | 2020/4/16-2021/4/15 | Yes | No |
| S.F.Express(Dong Guan)Limited | 2020/3/24 | 3,000.00 | 2020/4/29 | 15.03 | Joint liability guarantee | None | None | 2020/4/29-2021/4/24 | Yes | No |
| S.F. Express Group (Shanghai) Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/4/28 | 100.00 | Joint liability guarantee | None | None | 2020/4/28-2021/10/31 | No | No |
| SF Express ChongQing CO.LTD | 2020/3/24 | 1,000.00 | 2020/4/26 | 169.01 | Joint liability guarantee | None | None | 2020/4/26-2021/4/15 | Yes | No |
| SF Pharmaceutical Supply Chain Hubei Co., Ltd. | 2020/3/24 | 100.00 | 2020/4/23 | 5.00 | Joint liability guarantee | None | None | 2020/4/23-2021/3/31 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2020/4/27 | 11.61 | Joint liability guarantee | None | None | 2020/4/27-2021/4/21 | Yes | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/4/16 | 20.00 | Joint liability guarantee | None | None | 2020/4/16-2021/4/7 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Zhejiang Shunhefeng Freight Co., Ltd. | 2020/3/24 | 700.00 | 2020/4/29 | 10.00 | Joint liability guarantee | None | None | 2020/4/29-2021/4/21 | Yes | No |
| Zhejiang Shunlu Logistics Co.,Ltd. | 2020/3/24 | 3,000.00 | 2020/4/28 | 749.32 | Joint liability guarantee | None | None | 2020/4/28-2021/4/21 | Yes | No |
| S.F. Transportation (Changzhou) Co., Ltd. | 2020/3/24 | 200.00 | 2020/4/30 | 74.85 | Joint liability guarantee | None | None | 2020/4/30-2021/4/21 | Yes | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/5/26 | 18.02 | Joint liability guarantee | None | None | 2020/5/26-2021/4/30 | Yes | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2020/5/19 | 1,086.87 | Joint liability guarantee | None | None | 2020/5/19-2022/12/14 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/5/29 | 692.81 | Joint liability guarantee | None | None | 2020/5/29-2021/4/30 | Yes | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/5/18 | 58.86 | Joint liability guarantee | None | None | 2020/5/18-2022/7/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/5/18 | 237.86 | Joint liability guarantee | None | None | 2020/5/18-2022/7/31 | No | No |
| Shaanxi SF Freight Co., Ltd. | 2020/3/24 | 400.00 | 2020/5/13 | 59.55 | Joint liability guarantee | None | None | 2020/5/13-2021/7/31 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,000.00 | 2020/5/12 | 83.26 | Joint liability guarantee | None | None | 2020/5/12-2021/5/21 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/5/28 | 31.58 | Joint liability guarantee | None | None | 2020/5/28-2021/5/25 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/5/28 | 94.74 | Joint liability guarantee | None | None | 2020/5/28-2021/5/15 | Yes | No |
| Chengdu Taishun Logistics Co.,Ltd. | 2020/3/24 | 2,000.00 | 2020/5/19 | 900.00 | Joint liability guarantee | None | None | 2020/5/19-2021/4/30 | Yes | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2020/5/19 | 12.28 | Joint liability guarantee | None | None | 2020/5/19-2021/5/8 | Yes | No |
| Hebei S.F. Express Co., Ltd. | 2020/3/24 | 400.00 | 2020/5/20 | 90.00 | Joint liability guarantee | None | None | 2020/5/20-2021/3/31 | Yes | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 450.00 | 2020/5/20 | 60.35 | Joint liability guarantee | None | None | 2020/5/20-2021/5/14 | Yes | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 5,500.00 | 2020/5/19 | 75.00 | Joint liability guarantee | None | None | 2020/5/19-2021/3/31 | Yes | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/5/19 | 391.19 | Joint liability guarantee | None | None | 2020/5/19-2021/1/31 | Yes | No |
| Liaoning Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/5/28 | 191.30 | Joint liability guarantee | None | None | 2020/5/28-2021/4/30 | Yes | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/6/1 | 50.00 | Joint liability guarantee | None | None | 2020/6/1-2021/4/15 | Yes | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/6/1 | 24.93 | Joint liability | None | None | 2020/6/1-2021/4/30 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/6/10 | 1,825.00 | Joint liability guarantee | None | None | 2020/6/10-2021/2/28 | Yes | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 700.00 | 2020/6/10 | 169.71 | Joint liability guarantee | None | None | 2020/6/10-2021/3/31 | Yes | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/6/10 | 519.61 | Joint liability guarantee | None | None | 2020/6/10-2021/12/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/6/10 | 116.56 | Joint liability guarantee | None | None | 2020/6/10-2021/12/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/6/11 | 24.85 | Joint liability guarantee | None | None | 2020/6/11-2022/7/31 | No | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/6/29 | 180.00 | Joint liability guarantee | None | None | 2020/6/29-2021/5/31 | Yes | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/6/8 | 59.72 | Joint liability guarantee | None | None | 2020/6/8-2021/5/31 | Yes | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/6/29 | 99.37 | Joint liability guarantee | None | None | 2020/6/29-2021/6/30 | Yes | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2020/6/1 | 11.38 | Joint liability guarantee | None | None | 2020/6/1-2021/4/30 | Yes | No |
| HaiNan S.F.Express LTD. | 2020/3/24 | 500.00 | 2020/6/29 | 35.00 | Joint liability guarantee | None | None | 2020/6/29-2021/1/31 | Yes | No |
| Hangzhou SF Zhida Logistics Co., Ltd. | 2020/3/24 | 550.00 | 2020/6/1 | 256.59 | Joint liability guarantee | None | None | 2020/6/1-2021/5/19 | Yes | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/6/29 | 24.93 | Joint liability guarantee | None | None | 2020/6/29-2021/7/30 | No | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/6/1 | 80.00 | Joint liability guarantee | None | None | 2020/6/1-2021/5/31 | Yes | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 450.00 | 2020/6/17 | 3.00 | Joint liability guarantee | None | None | 2020/6/17-2021/6/14 | Yes | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 450.00 | 2020/6/1 | 82.33 | Joint liability guarantee | None | None | 2020/6/1-2021/5/31 | Yes | No |
| Jinhua S.F. Express Co., Ltd. | 2020/3/24 | 200.00 | 2020/6/1 | 5.00 | Joint liability guarantee | None | None | 2020/6/1-2021/4/30 | Yes | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 500.00 | 2020/6/1 | 7.00 | Joint liability guarantee | None | None | 2020/6/1-2021/4/30 | Yes | No |
| Nantong S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/6/1 | 12.27 | Joint liability guarantee | None | None | 2020/6/1-2021/5/18 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/6/1 | 150.00 | Joint liability guarantee | None | None | 2020/6/1-2021/5/31 | Yes | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/6/1 | 2.00 | Joint liability guarantee | None | None | 2020/6/1-2021/5/14 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/6/10 | 30.40 | Joint liability guarantee | None | None | 2020/6/10-2021/5/25 | Yes | No |
| Shanghai Shuncheng Logistics Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/6/12 | 400.00 | Joint liability guarantee | None | None | 2020/6/12-2021/9/30 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 200.00 | 2020/6/10 | 14.54 | Joint liability guarantee | None | None | 2020/6/10-2021/5/31 | Yes | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 200.00 | 2020/6/30 | 23.00 | Joint liability guarantee | None | None | 2020/6/30-2021/5/31 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/6/24 | 1,200.00 | Joint liability guarantee | None | None | 2020/6/24-2021/5/13 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/6/8 | 9.43 | Joint liability guarantee | None | None | 2020/6/8-2021/4/30 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/6/22 | 96.96 | Joint liability guarantee | None | None | 2020/6/22-2021/3/31 | Yes | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2020/6/8 | 100.00 | Joint liability guarantee | None | None | 2020/6/8-2021/4/30 | Yes | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2020/6/4 | 43.35 | Joint liability guarantee | None | None | 2020/6/4-2021/5/31 | Yes | No |
| Wuxi S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2020/6/3 | 20.00 | Joint liability guarantee | None | None | 2020/6/3-2021/5/23 | Yes | No |
| Xinjiang SF Express Co.,LTD. | 2020/3/24 | 210.00 | 2020/6/29 | 104.78 | Joint liability guarantee | None | None | 2020/6/29-2021/6/19 | Yes | No |
| Zhaoqing S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/6/10 | 16.20 | Joint liability guarantee | None | None | 2020/6/10-2021/6/5 | Yes | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/6/11 | 21.65 | Joint liability guarantee | None | None | 2020/6/11-2021/11/30 | No | No |
| Zhejiang Shunlu Logistics Co.,Ltd. | 2020/3/24 | 3,000.00 | 2020/6/8 | 40.00 | Joint liability guarantee | None | None | 2020/6/8-2021/5/28 | Yes | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/6/24 | 5.00 | Joint liability guarantee | None | None | 2020/6/24-2021/6/15 | Yes | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/6/24 | 1.00 | Joint liability guarantee | None | None | 2020/6/24-2021/6/19 | Yes | No |
| Shenzhen SF Freight Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/6/24 | 325.15 | Joint liability guarantee | None | None | 2020/6/24-2021/6/11 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/6/19 | 3.23 | Joint liability guarantee | None | None | 2020/6/19-2021/6/20 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 20,000.00 | 2020/6/19 | 12.93 | Joint liability guarantee | None | None | 2020/6/19-2021/6/28 | Yes | No |
| TIANJIN S.F. EXPRESS CO., LTD. | 2020/3/24 | 700.00 | 2020/6/29 | 130.00 | Joint liability guarantee | None | None | 2020/6/29-2021/7/29 | No | No |
| Tibet S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/6/24 | 5.00 | Joint liability | None | None | 2020/6/24-2021/3/31 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Zhejiang Shunlu Logistics Co.,Ltd. | 2020/3/24 | 3,000.00 | 2020/6/24 | 100.00 | Joint liability guarantee | None | None | 2020/6/24-2021/5/31 | Yes | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2020/6/24 | 45.17 | Joint liability guarantee | None | None | 2020/6/24-2021/6/9 | Yes | No |
| Liaoning Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/6/24 | 172.09 | Joint liability guarantee | None | None | 2020/6/24-2021/6/11 | Yes | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,000.00 | 2020/6/18 | 41.63 | Joint liability guarantee | None | None | 2020/6/18-2021/7/6 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/7/17 | 25.00 | Joint liability guarantee | None | None | 2020/7/17-2021/7/3 | No | No |
| Hunan SF Freight Co., Ltd. | 2020/3/24 | 200.00 | 2020/7/17 | 6.60 | Joint liability guarantee | None | None | 2020/7/17-2021/5/14 | Yes | No |
| S.F. Express Corporation | 2020/3/24 | 1,000.00 | 2020/7/22 | 129.28 | Joint liability guarantee | None | None | 2020/7/22-2021/5/26 | Yes | No |
| Shanghai Shuncheng Logistics Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/7/14 | 380.00 | Joint liability guarantee | None | None | 2020/7/14-2021/5/31 | Yes | No |
| Qinghai SF Juyi Supply Chain Management Co., Ltd. | 2020/3/24 | 100.00 | 2020/7/14 | 18.28 | Joint liability guarantee | None | None | 2020/7/14-2021/7/10 | No | No |
| Heilongjiang S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2020/7/14 | 117.21 | Joint liability guarantee | None | None | 2020/7/14-2021/6/30 | Yes | No |
| Zhejiang Shunhefeng Freight Co., Ltd. | 2020/3/24 | 700.00 | 2020/7/14 | 5.00 | Joint liability guarantee | None | None | 2020/7/14-2021/6/30 | Yes | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/7/10 | 27.24 | Joint liability guarantee | None | None | 2020/7/10-2021/3/31 | Yes | No |
| XI`AN S.F EXPRESS CO.,LTD | 2020/3/24 | 500.00 | 2020/7/22 | 125.74 | Joint liability guarantee | None | None | 2020/7/22-2021/7/6 | No | No |
| Xi'an Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/7/10 | 9.42 | Joint liability guarantee | None | None | 2020/7/10-2021/8/31 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/7/28 | 100.00 | Joint liability guarantee | None | None | 2020/7/28-2021/9/30 | No | No |
| Beijing S.F. Express Co., LTD. | 2020/3/24 | 3,000.00 | 2020/7/22 | 200.00 | Joint liability guarantee | None | None | 2020/7/22-2021/4/29 | Yes | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/7/22 | 46.39 | Joint liability guarantee | None | None | 2020/7/22-2021/7/9 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/7/3 | 14.18 | Joint liability guarantee | None | None | 2020/7/3-2021/6/1 | Yes | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/7/30 | 140.00 | Joint liability guarantee | None | None | 2020/7/30-2021/8/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/7/14 | 300.00 | Joint liability guarantee | None | None | 2020/7/14-2021/6/14 | Yes | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/7/2 | 500.00 | Joint liability guarantee | None | None | 2020/7/2-2021/3/31 | Yes | No |
| SF Airlines Company Limited | 2020/3/24 | 220,000.00 | 2020/7/23 | 23.27 | Joint liability guarantee | None | None | 2020/7/23-2021/6/29 | Yes | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/7/30 | 47.26 | Joint liability guarantee | None | None | 2020/7/30-2021/7/14 | No | No |
| SF Transportation (Nanjing) Co., Ltd. | 2020/3/24 | 600.00 | 2020/7/29 | 100.00 | Joint liability guarantee | None | None | 2020/7/29-2021/6/15 | Yes | No |
| Guang Zhou S.F. Express Co., Ltd. | 2020/3/24 | 6,000.00 | 2020/7/27 | 1,200.00 | Joint liability guarantee | None | None | 2020/7/27-2021/8/8 | No | No |
| Guang Zhou S.F. Express Co., Ltd. | 2020/3/24 | 6,000.00 | 2020/7/27 | 1,500.00 | Joint liability guarantee | None | None | 2020/7/27-2021/8/8 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/7/10 | 110.00 | Joint liability guarantee | None | None | 2020/7/10-2021/6/11 | Yes | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/7/30 | 73.13 | Joint liability guarantee | None | None | 2020/7/30-2021/6/30 | Yes | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 500.00 | 2020/7/30 | 36.57 | Joint liability guarantee | None | None | 2020/7/30-2021/7/15 | No | No |
| XIAMEN SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 500.00 | 2020/7/28 | 100.00 | Joint liability guarantee | None | None | 2020/7/28-2021/7/31 | No | No |
| Shanghai SF Freight Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/7/27 | 418.25 | Joint liability guarantee | None | None | 2020/7/27-2021/7/22 | No | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/7/28 | 106.53 | Joint liability guarantee | None | None | 2020/7/28-2021/7/20 | No | No |
| Shenzhen SF Freight Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/7/28 | 432.81 | Joint liability guarantee | None | None | 2020/7/28-2021/7/31 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/7/30 | 13.08 | Joint liability guarantee | None | None | 2020/7/30-2021/7/20 | No | No |
| Yangzhou Shunfeng Express Transport Co., Ltd. | 2020/3/24 | 300.00 | 2020/7/27 | 90.93 | Joint liability guarantee | None | None | 2020/7/27-2021/7/22 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/7/30 | 28.15 | Joint liability guarantee | None | None | 2020/7/30-2021/7/14 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/7/14 | 39.51 | Joint liability guarantee | None | None | 2020/7/14-2021/7/6 | No | No |
| Shanghai SF Freight Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/8/3 | 418.25 | Joint liability guarantee | None | None | 2020/8/3-2021/7/9 | No | No |
| Guang Zhou S.F. Express Co., Ltd. | 2020/3/24 | 6,000.00 | 2020/8/6 | 1,200.00 | Joint liability guarantee | None | None | 2020/8/6-2021/8/8 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/8/5 | 29.11 | Joint liability guarantee | None | None | 2020/8/5-2021/7/20 | No | No |
| Jiangxi S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/8/5 | 113.03 | Joint liability | None | None | 2020/8/5-2021/7/14 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Fengrongliantong Technology (Shenzhen) Co., Ltd. | 2020/3/24 | 15,000.00 | 2020/8/7 | 2,500.00 | Joint liability guarantee | None | None | 2020/8/7-2021/8/4 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/8/7 | 110.00 | Joint liability guarantee | None | None | 2020/8/7-2021/7/31 | No | No |
| Shandong SF Freight Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/8/12 | 75.00 | Joint liability guarantee | None | None | 2020/8/12-2021/7/31 | No | No |
| Yunnan Shunhe Freight Co., Ltd. | 2020/3/24 | 250.00 | 2020/8/12 | 93.97 | Joint liability guarantee | None | None | 2020/8/12-2021/7/29 | No | No |
| Guangxi SF Freight Co., Ltd. | 2020/3/24 | 250.00 | 2020/8/14 | 30.00 | Joint liability guarantee | None | None | 2020/8/14-2021/8/5 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/8/12 | 10.00 | Joint liability guarantee | None | None | 2020/8/12-2021/7/31 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/8/14 | 350.00 | Joint liability guarantee | None | None | 2020/8/14-2021/1/31 | Yes | No |
| Fujian Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 400.00 | 2020/8/18 | 26.36 | Joint liability guarantee | None | None | 2020/8/18-2021/7/20 | No | No |
| Fujian Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 400.00 | 2020/8/18 | 75.88 | Joint liability guarantee | None | None | 2020/8/18-2021/7/20 | No | No |
| SF Airlines Company Limited | 2020/3/24 | 220,000.00 | 2020/8/4 | 8.78 | Joint liability guarantee | None | None | 2020/8/4-2021/6/30 | Yes | No |
| Hunan,S.F.Express(Group)Co.,Ltd. | 2020/3/24 | 1,500.00 | 2020/8/12 | 12.00 | Joint liability guarantee | None | None | 2020/8/12-2021/5/31 | Yes | No |
| S.F. Express Corporation | 2020/3/24 | 1,000.00 | 2020/8/19 | 170.26 | Joint liability guarantee | None | None | 2020/8/19-2021/8/3 | No | No |
| SF Express (Europe) Co.Ltd | 2020/3/24 | 3,900.00 | 2020/8/7 | 3,290.91 | Joint liability guarantee | None | None | 2020/8/7-2025/7/16 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/8/20 | 300.00 | Joint liability guarantee | None | None | 2020/8/20-2021/5/31 | Yes | No |
| Hebei S.F. Express Co., Ltd. | 2020/3/24 | 400.00 | 2020/8/12 | 30.00 | Joint liability guarantee | None | None | 2020/8/12-2021/7/31 | No | No |
| Jiangsu Huihai Logistics Co.,Ltd. | 2020/3/24 | 100.00 | 2020/8/19 | 20.00 | Joint liability guarantee | None | None | 2020/8/19-2021/10/14 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/8/21 | 5.70 | Joint liability guarantee | None | None | 2020/8/21-2021/8/13 | No | No |
| Lanzhou S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/8/20 | 15.00 | Joint liability guarantee | None | None | 2020/8/20-2021/6/30 | Yes | No |
| NINGBO SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 3,000.00 | 2020/8/20 | 9.46 | Joint liability guarantee | None | None | 2020/8/20-2021/7/30 | No | No |
| QUANZHOU SHUNFENG TRANSPORTATION COMPANY LIMITED | 2020/3/24 | 850.00 | 2020/8/12 | 500.00 | Joint liability guarantee | None | None | 2020/8/12-2021/7/30 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Quanzhou Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,300.00 | 2020/8/21 | 105.55 | Joint liability guarantee | None | None | 2020/8/21-2021/8/5 | No | No |
| XIAMEN SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 500.00 | 2020/8/12 | 150.00 | Joint liability guarantee | None | None | 2020/8/12-2021/7/31 | No | No |
| SF Airlines Company Limited | 2020/3/24 | 220,000.00 | 2020/8/26 | 195.54 | Joint liability guarantee | None | None | 2020/8/26-2021/8/31 | No | No |
| Tibet S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/8/21 | 10.00 | Joint liability guarantee | None | None | 2020/8/21-2021/5/30 | Yes | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2020/8/31 | 53.41 | Joint liability guarantee | None | None | 2020/8/31-2022/12/31 | No | No |
| Yunnan S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2020/8/20 | 221.86 | Joint liability guarantee | None | None | 2020/8/20-2021/7/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/8/14 | 80.00 | Joint liability guarantee | None | None | 2020/8/14-2021/7/30 | No | No |
| Zhejiang Shunlu Logistics Co.,Ltd. | 2020/3/24 | 33,000.00 | 2020/8/21 | 10.00 | Joint liability guarantee | None | None | 2020/8/21-2021/4/30 | Yes | No |
| Shenzhen Fenglang Supply Chain Co., Ltd. | 2020/3/24 | 5,100.00 | 2020/8/19 | 236.70 | Joint liability guarantee | None | None | 2020/8/19-2021/2/13 | Yes | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/9/3 | 50.49 | Joint liability guarantee | None | None | 2020/9/3-2021/8/12 | No | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2020/3/24 | 10,000.00 | 2020/9/1 | 41.94 | Joint liability guarantee | None | None | 2020/9/1-2022/9/30 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/9/3 | 6.58 | Joint liability guarantee | None | None | 2020/9/3-2021/10/31 | No | No |
| Hubei Shunhefeng Freight Co., Ltd. | 2020/3/24 | 200.00 | 2020/9/3 | 3.00 | Joint liability guarantee | None | None | 2020/9/3-2021/8/25 | No | No |
| Shanghai FONPAI Supply Chain Co., Ltd. | 2020/3/24 | 100.00 | 2020/9/3 | 3.00 | Joint liability guarantee | None | None | 2020/9/3-2021/8/13 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2020/9/11 | 115.10 | Joint liability guarantee | None | None | 2020/9/11-2021/8/14 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/9/11 | 10.00 | Joint liability guarantee | None | None | 2020/9/11-2021/9/3 | No | No |
| Tianjin SF Zhida Logistics Co., Ltd. | 2020/3/24 | 200.00 | 2020/9/11 | 20.00 | Joint liability guarantee | None | None | 2020/9/11-2021/7/14 | No | No |
| Shenzhen S.F. Intra-city Logistics Co., Ltd. | 2020/3/24 | 500.00 | 2020/9/11 | 15.00 | Joint liability guarantee | None | None | 2020/9/11-2021/4/30 | Yes | No |
| Shenzhen S.F. Intra-city Logistics Co., Ltd. | 2020/3/24 | 500.00 | 2020/9/11 | 15.00 | Joint liability guarantee | None | None | 2020/9/11-2021/4/30 | Yes | No |
| SF Supply Chain (Hong Kong) Limited | 2020/3/24 | 2,100.00 | 2020/9/29 | 853.11 | Joint liability guarantee | None | None | 2020/9/29-2024/1/29 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,300.00 | 2020/9/22 | 24.98 | Joint liability | None | None | 2020/9/22-2021/9/30 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/9/28 | 3.00 | Joint liability guarantee | None | None | 2020/9/28-2021/9/22 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2020/9/29 | 1.04 | Joint liability guarantee | None | None | 2020/9/29-2021/9/29 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/9/17 | 500.00 | Joint liability guarantee | None | None | 2020/9/17-2021/6/30 | Yes | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/9/17 | 1,300.00 | Joint liability guarantee | None | None | 2020/9/17-2021/6/30 | Yes | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/9/28 | 570.56 | Joint liability guarantee | None | None | 2020/9/28-2021/9/30 | No | No |
| Beijing S.F. Express Co., LTD. | 2020/3/24 | 3,000.00 | 2020/9/30 | 464.88 | Joint liability guarantee | None | None | 2020/9/30-2021/9/22 | No | No |
| Dongguan DHL Supply Chain Co., Ltd. | 2020/3/24 | 3,300.00 | 2020/9/25 | 148.63 | Joint liability guarantee | None | None | 2020/9/25-2021/9/29 | No | No |
| Foshan S.F. Express Co., Ltd. | 2020/3/24 | 900.00 | 2020/9/17 | 528.87 | Joint liability guarantee | None | None | 2020/9/17-2021/8/31 | No | No |
| Guizhou SF Zhida Freight Co., Ltd. | 2020/3/24 | 300.00 | 2020/9/27 | 98.61 | Joint liability guarantee | None | None | 2020/9/27-2021/9/14 | No | No |
| Hangzhou SF Zhida Logistics Co., Ltd. | 2020/3/24 | 1,350.00 | 2020/9/29 | 256.59 | Joint liability guarantee | None | None | 2020/9/29-2021/5/19 | Yes | No |
| Hangzhou Zhentai Asset Management Co., Ltd. | 2020/3/24 | 3,500.00 | 2020/9/3 | 226.60 | Joint liability guarantee | None | None | 2020/9/3-2021/8/31 | No | No |
| Hangzhou Zhentai Asset Management Co., Ltd. | 2020/3/24 | 3,500.00 | 2020/9/3 | 290.10 | Joint liability guarantee | None | None | 2020/9/3-2021/8/31 | No | No |
| Hangzhou Zhentai Asset Management Co., Ltd. | 2020/3/24 | 3,500.00 | 2020/9/3 | 183.20 | Joint liability guarantee | None | None | 2020/9/3-2021/8/31 | No | No |
| Hangzhou Zhentai Asset Management Co., Ltd. | 2020/3/24 | 3,500.00 | 2020/9/3 | 183.20 | Joint liability guarantee | None | None | 2020/9/3-2021/8/31 | No | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/18 | 16.07 | Joint liability guarantee | None | None | 2020/9/18-2021/8/25 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/9/30 | 108.16 | Joint liability guarantee | None | None | 2020/9/30-2021/3/31 | Yes | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/9/17 | 5.00 | Joint liability guarantee | None | None | 2020/9/17-2021/9/14 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/9/2 | 8.00 | Joint liability guarantee | None | None | 2020/9/2-2021/8/13 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/9/27 | 30.00 | Joint liability guarantee | None | None | 2020/9/27-2021/9/15 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/7/28 | 22.20 | Joint liability guarantee | None | None | 2020/7/28-2021/7/17 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/9/27 | 27.66 | Joint liability guarantee | None | None | 2020/9/27-2021/9/18 | No | No |
| Jiangxi S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/18 | 15.00 | Joint liability guarantee | None | None | 2020/9/18-2021/9/14 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2020/9/28 | 39.41 | Joint liability guarantee | None | None | 2020/9/28-2021/8/31 | No | No |
| Lanzhou S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/9/30 | 30.00 | Joint liability guarantee | None | None | 2020/9/30-2021/9/21 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/9/30 | 139.35 | Joint liability guarantee | None | None | 2020/9/30-2021/5/14 | Yes | No |
| Nantong S.F. Express Co., Ltd. | 2020/3/24 | 200.00 | 2020/9/30 | 74.27 | Joint liability guarantee | None | None | 2020/9/30-2021/1/9 | Yes | No |
| S.F. Express Group (Shanghai) Co., Ltd. | 2020/3/24 | 2,100.00 | 2020/9/29 | 200.00 | Joint liability guarantee | None | None | 2020/9/29-2021/10/31 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/9/4 | 300.00 | Joint liability guarantee | None | None | 2020/9/4-2021/8/31 | No | No |
| Qinghai Shunfeng Express Co., Ltd. | 2020/3/24 | 200.00 | 2020/9/8 | 34.65 | Joint liability guarantee | None | None | 2020/9/8-2021/8/19 | No | No |
| Shandong SF Freight Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/27 | 101.91 | Joint liability guarantee | None | None | 2020/9/27-2021/11/30 | No | No |
| Shanghai Solution Plus Supply Chain Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/29 | 140.63 | Joint liability guarantee | None | None | 2020/9/29-2021/7/24 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/9/18 | 10.00 | Joint liability guarantee | None | None | 2020/9/18-2021/6/30 | Yes | No |
| Shenzhen Fengnong Technology Co., Ltd. | 2020/3/24 | 310.00 | 2020/9/28 | 7.05 | Joint liability guarantee | None | None | 2020/9/28-2021/7/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/9/27 | 36.56 | Joint liability guarantee | None | None | 2020/9/27-2021/9/18 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/9/22 | 17.00 | Joint liability guarantee | None | None | 2020/9/22-2021/12/31 | No | No |
| S.F. Express (Huizhou) Co., Ltd. | 2020/3/24 | 700.00 | 2020/9/17 | 378.94 | Joint liability guarantee | None | None | 2020/9/17-2021/8/31 | No | No |
| S.F.EXPRESS (TIANJIN) CO., LTD. | 2020/3/24 | 300.00 | 2020/9/27 | 52.91 | Joint liability guarantee | None | None | 2020/9/27-2021/2/26 | Yes | No |
| S.F. Express Group (Shanghai) Co., Ltd. | 2020/3/24 | 2,100.00 | 2020/9/7 | 790.00 | Joint liability guarantee | None | None | 2020/9/7-2022/2/28 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2020/9/27 | 30.00 | Joint liability guarantee | None | None | 2020/9/27-2021/10/15 | No | No |
| SF Express ChongQing CO.LTD | 2020/3/24 | 1,000.00 | 2020/9/17 | 262.66 | Joint liability guarantee | None | None | 2020/9/17-2021/12/31 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/25 | 5.00 | Joint liability | None | None | 2020/9/25-2021/7/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/9/8 | 3.00 | Joint liability guarantee | None | None | 2020/9/8-2021/7/31 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/9/8 | 77.87 | Joint liability guarantee | None | None | 2020/9/8-2021/3/31 | Yes | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/9/25 | 91.46 | Joint liability guarantee | None | None | 2020/9/25-2021/6/30 | Yes | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/9/28 | 87.38 | Joint liability guarantee | None | None | 2020/9/28-2021/6/30 | Yes | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/9/27 | 10.97 | Joint liability guarantee | None | None | 2020/9/27-2021/9/16 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/9/27 | 2.00 | Joint liability guarantee | None | None | 2020/9/27-2021/9/16 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/9/27 | 60.00 | Joint liability guarantee | None | None | 2020/9/27-2021/9/21 | No | No |
| Zhejiang Shunhefeng Freight Co., Ltd. | 2020/3/24 | 700.00 | 2020/9/29 | 5.00 | Joint liability guarantee | None | None | 2020/9/29-2021/9/3 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/9/3 | 100.00 | Joint liability guarantee | None | None | 2020/9/3-2021/5/31 | Yes | No |
| HaiNan S.F.Express LTD. | 2020/3/24 | 700.00 | 2020/9/2 | 177.28 | Joint liability guarantee | None | None | 2020/9/2-2021/8/31 | No | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/2 | 80.00 | Joint liability guarantee | None | None | 2020/9/2-2021/8/13 | No | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/9/3 | 1.80 | Joint liability guarantee | None | None | 2020/9/3-2021/4/30 | Yes | No |
| Quanzhou Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,300.00 | 2020/9/3 | 15.00 | Joint liability guarantee | None | None | 2020/9/3-2021/7/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/9/3 | 100.00 | Joint liability guarantee | None | None | 2020/9/3-2021/9/5 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/9/3 | 205.17 | Joint liability guarantee | None | None | 2020/9/3-2021/9/23 | No | No |
| Zhejiang Shun Feng Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/9/2 | 600.00 | Joint liability guarantee | None | None | 2020/9/2-2021/6/30 | Yes | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/10/15 | 350.00 | Joint liability guarantee | None | None | 2020/10/15-2021/10/15 | No | No |
| Chongqing SF Zhida Supply Chain Management Co., Ltd. | 2020/3/24 | 650.00 | 2020/10/16 | 148.36 | Joint liability guarantee | None | None | 2020/10/16-2021/9/30 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/10/21 | 10.00 | Joint liability guarantee | None | None | 2020/10/21-2021/10/10 | No | No |
| Shenzhen Fengnong Technology Co., Ltd. | 2020/3/24 | 310.00 | 2020/10/19 | 17.94 | Joint liability guarantee | None | None | 2020/10/19-2021/7/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/10/20 | 500.00 | Joint liability guarantee | None | None | 2020/10/20-2021/10/10 | No | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2020/10/22 | 14.78 | Joint liability guarantee | None | None | 2020/10/22-2021/10/15 | No | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2020/10/22 | 15.10 | Joint liability guarantee | None | None | 2020/10/22-2021/10/15 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2020/10/22 | 224.64 | Joint liability guarantee | None | None | 2020/10/22-2021/9/30 | No | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/10/12 | 5.00 | Joint liability guarantee | None | None | 2020/10/12-2021/8/31 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/10/28 | 563.53 | Joint liability guarantee | None | None | 2020/10/28-2021/10/26 | No | No |
| Guangxi ShunFeng Express Co.,Ltd. | 2020/3/24 | 700.00 | 2020/10/29 | 50.00 | Joint liability guarantee | None | None | 2020/10/29-2021/10/15 | No | No |
| Hebei S.F. Express Co., Ltd. | 2020/3/24 | 400.00 | 2020/10/21 | 2.00 | Joint liability guarantee | None | None | 2020/10/21-2021/10/10 | No | No |
| HENAN S.F.EXPRESS CO.,LTD | 2020/3/24 | 600.00 | 2020/10/22 | 333.56 | Joint liability guarantee | None | None | 2020/10/22-2021/10/15 | No | No |
| Hunan,S.F.Express(Group)Co.,Ltd. | 2020/3/24 | 1,500.00 | 2020/10/13 | 400.00 | Joint liability guarantee | None | None | 2020/10/13-2021/7/31 | No | No |
| Hunan,S.F.Express(Group)Co.,Ltd. | 2020/3/24 | 1,500.00 | 2020/10/13 | 200.00 | Joint liability guarantee | None | None | 2020/10/13-2021/7/31 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/10/13 | 5.00 | Joint liability guarantee | None | None | 2020/10/13-2021/9/24 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/10/29 | 6.00 | Joint liability guarantee | None | None | 2020/10/29-2021/10/15 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2020/10/28 | 78.38 | Joint liability guarantee | None | None | 2020/10/28-2021/10/23 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/10/29 | 15.15 | Joint liability guarantee | None | None | 2020/10/29-2022/1/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/10/28 | 7.74 | Joint liability guarantee | None | None | 2020/10/28-2021/8/15 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/10/10 | 20.45 | Joint liability guarantee | None | None | 2020/10/10-2021/9/9 | No | No |
| SF Airlines Company Limited | 2020/3/24 | 220,000.00 | 2020/10/29 | 20.30 | Joint liability guarantee | None | None | 2020/10/29-2021/10/22 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2020/10/29 | 4.00 | Joint liability guarantee | None | None | 2020/10/29-2021/6/21 | Yes | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2020/10/29 | 200.00 | Joint liability guarantee | None | None | 2020/10/29-2021/6/21 | Yes | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2020/10/30 | 18.96 | Joint liability | None | None | 2020/10/30-2021/12/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/10/22 | 32.00 | Joint liability guarantee | None | None | 2020/10/22-2021/4/9 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/10/22 | 49.65 | Joint liability guarantee | None | None | 2020/10/22-2021/10/16 | No | No |
| Xuzhou S.F. Express Co., Ltd. | 2020/3/24 | 400.00 | 2020/10/13 | 195.67 | Joint liability guarantee | None | None | 2020/10/13-2021/9/30 | No | No |
| ZHONGSHAN S.F. EXPRESS CO. LTD | 2020/3/24 | 600.00 | 2020/10/23 | 21.06 | Joint liability guarantee | None | None | 2020/10/23-2021/5/14 | Yes | No |
| Guangxi ShunFeng Express Co.,Ltd. | 2020/3/24 | 700.00 | 2020/11/4 | 50.00 | Joint liability guarantee | None | None | 2020/11/4-2021/11/30 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2020/11/10 | 12.47 | Joint liability guarantee | None | None | 2020/11/10-2021/10/27 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/11/6 | 28.11 | Joint liability guarantee | None | None | 2020/11/6-2023/10/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/11/5 | 135.75 | Joint liability guarantee | None | None | 2020/11/5-2023/10/31 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2020/11/20 | 153.35 | Joint liability guarantee | None | None | 2020/11/20-2021/3/31 | Yes | No |
| Hubei Shunhefeng Freight Co., Ltd. | 2020/3/24 | 200.00 | 2020/11/10 | 5.67 | Joint liability guarantee | None | None | 2020/11/10-2021/10/9 | No | No |
| Hunan SF Freight Co., Ltd. | 2020/3/24 | 200.00 | 2020/11/19 | 9.73 | Joint liability guarantee | None | None | 2020/11/19-2021/10/31 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/11/10 | 2.46 | Joint liability guarantee | None | None | 2020/11/10-2021/10/31 | No | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 500.00 | 2020/11/10 | 2.00 | Joint liability guarantee | None | None | 2020/11/10-2021/10/31 | No | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 500.00 | 2020/11/9 | 6.72 | Joint liability guarantee | None | None | 2020/11/9-2021/10/30 | No | No |
| Qingdao SF Freight Co., Ltd. | 2020/3/24 | 150.00 | 2020/11/17 | 54.07 | Joint liability guarantee | None | None | 2020/11/17-2021/10/31 | No | No |
| Shandong SF Freight Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/11/9 | 101.91 | Joint liability guarantee | None | None | 2020/11/9-2022/5/31 | No | No |
| Shaanxi SF Freight Co., Ltd. | 2020/3/24 | 400.00 | 2020/11/17 | 21.09 | Joint liability guarantee | None | None | 2020/11/17-2021/6/30 | Yes | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/2 | 40.00 | Joint liability guarantee | None | None | 2020/11/2-2021/5/30 | Yes | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/2 | 200.00 | Joint liability guarantee | None | None | 2020/11/2-2021/5/31 | Yes | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/11 | 183.68 | Joint liability guarantee | None | None | 2020/11/11-2021/10/17 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/11 | 400.00 | Joint liability guarantee | None | None | 2020/11/11-2021/11/30 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/11/6 | 410.40 | Joint liability guarantee | None | None | 2020/11/6-2021/3/27 | Yes | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/11/9 | 50.00 | Joint liability guarantee | None | None | 2020/11/9-2021/5/31 | Yes | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/11/2 | 100.00 | Joint liability guarantee | None | None | 2020/11/2-2021/8/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/11/9 | 120.00 | Joint liability guarantee | None | None | 2020/11/9-2021/8/31 | No | No |
| Tianjin SF Freight Co., Ltd. | 2020/3/24 | 100.00 | 2020/11/19 | 42.62 | Joint liability guarantee | None | None | 2020/11/19-2021/11/11 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/30 | 50.00 | Joint liability guarantee | None | None | 2020/11/30-2021/11/20 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,300.00 | 2020/11/23 | 99.91 | Joint liability guarantee | None | None | 2020/11/23-2021/11/30 | No | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/11/10 | 5.00 | Joint liability guarantee | None | None | 2020/11/10-2021/9/30 | No | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2020/11/4 | 80.00 | Joint liability guarantee | None | None | 2020/11/4-2021/8/31 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2020/11/10 | 12.21 | Joint liability guarantee | None | None | 2020/11/10-2021/10/31 | No | No |
| Hunan,S.F.Express(Group)Co.,Ltd. | 2020/3/24 | 1,500.00 | 2020/11/17 | 5.00 | Joint liability guarantee | None | None | 2020/11/17-2021/7/31 | No | No |
| Hunan,S.F.Express(Group)Co.,Ltd. | 2020/3/24 | 1,500.00 | 2020/11/10 | 87.72 | Joint liability guarantee | None | None | 2020/11/10-2021/10/31 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/11/18 | 6.00 | Joint liability guarantee | None | None | 2020/11/18-2021/12/31 | No | No |
| Jieyang Shunfeng Express Co., Ltd. | 2020/3/24 | 50.00 | 2020/11/9 | 4.00 | Joint liability guarantee | None | None | 2020/11/9-2021/10/12 | No | No |
| Langfang S.F. Express Co., Ltd. | 2020/3/24 | 50.00 | 2020/11/10 | 1.00 | Joint liability guarantee | None | None | 2020/11/10-2021/7/14 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/11/19 | 7.29 | Joint liability guarantee | None | None | 2020/11/19-2021/2/28 | Yes | No |
| Lishui S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/11/20 | 40.59 | Joint liability guarantee | None | None | 2020/11/20-2021/12/15 | No | No |
| NINGBO SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 3,000.00 | 2020/11/18 | 500.00 | Joint liability guarantee | None | None | 2020/11/18-2021/12/31 | No | No |
| Qinghai Shunfeng Express Co., Ltd. | 2020/3/24 | 200.00 | 2020/11/19 | 2.02 | Joint liability guarantee | None | None | 2020/11/19-2021/10/31 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/11/9 | 250.00 | Joint liability | None | None | 2020/11/9-2021/10/27 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/11/25 | 21.24 | Joint liability guarantee | None | None | 2020/11/25-2021/11/12 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/11/25 | 12.07 | Joint liability guarantee | None | None | 2020/11/25-2021/10/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/11/15 | 11.30 | Joint liability guarantee | None | None | 2020/11/15-2021/10/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/11/15 | 25.04 | Joint liability guarantee | None | None | 2020/11/15-2021/10/31 | No | No |
| Hebei Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 150.00 | 2020/11/27 | 26.46 | Joint liability guarantee | None | None | 2020/11/27-2021/2/28 | Yes | No |
| S.F.Express(Dong Guan)Limited | 2020/3/24 | 4,000.00 | 2020/11/18 | 11.74 | Joint liability guarantee | None | None | 2020/11/18-2021/11/11 | No | No |
| S.F.EXPRESS (TIANJIN) CO., LTD. | 2020/3/24 | 300.00 | 2020/11/18 | 45.13 | Joint liability guarantee | None | None | 2020/11/18-2021/1/31 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/11/19 | 9.10 | Joint liability guarantee | None | None | 2020/11/19-2021/10/31 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/11/19 | 2.85 | Joint liability guarantee | None | None | 2020/11/19-2021/10/15 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/11/19 | 40.50 | Joint liability guarantee | None | None | 2020/11/19-2021/10/16 | No | No |
| Wuxi S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2020/11/17 | 2.00 | Joint liability guarantee | None | None | 2020/11/17-2021/10/31 | No | No |
| Zhejiang Shun Feng Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/11/18 | 300.00 | Joint liability guarantee | None | None | 2020/11/18-2021/12/7 | No | No |
| XI`AN S.F EXPRESS CO.,LTD | 2020/3/24 | 500.00 | 2020/11/10 | 53.84 | Joint liability guarantee | None | None | 2020/11/10-2021/10/27 | No | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/11/23 | 1,600.00 | Joint liability guarantee | None | None | 2020/11/23-2021/6/30 | Yes | No |
| Chongqing Huiyifeng Logistics Co., Ltd. | 2020/3/24 | 3,000.00 | 2020/12/30 | 1,500.00 | Joint liability guarantee | None | None | 2020/12/30-2022/1/19 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/12/28 | 73.08 | Joint liability guarantee | None | None | 2020/12/28-2021/7/27 | No | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 500.00 | 2020/12/30 | 115.86 | Joint liability guarantee | None | None | 2020/12/30-2021/12/15 | No | No |
| Fujian Shunhe Supply Chain Management Co., Ltd. | 2020/3/24 | 400.00 | 2020/12/30 | 60.45 | Joint liability guarantee | None | None | 2020/12/30-2022/2/28 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/12/25 | 10.00 | Joint liability guarantee | None | None | 2020/12/25-2021/9/27 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/12/30 | 106.53 | Joint liability guarantee | None | None | 2020/12/30-2021/12/29 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Guangxi ShunFeng Express Co.,Ltd. | 2020/3/24 | 700.00 | 2020/12/29 | 100.00 | Joint liability guarantee | None | None | 2020/12/29-2022/1/31 | No | No |
| XIAMEN SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 500.00 | 2020/12/29 | 40.00 | Joint liability guarantee | None | None | 2020/12/29-2021/12/31 | No | No |
| Jiangxi S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/12/29 | 17.27 | Joint liability guarantee | None | None | 2020/12/29-2021/12/23 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2020/12/25 | 200.00 | Joint liability guarantee | None | None | 2020/12/25-2021/3/31 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/12/25 | 22.04 | Joint liability guarantee | None | None | 2020/12/25-2022/3/31 | No | No |
| Heilongjiang SF Juyi Supply Chain Management Co., Ltd. | 2020/3/24 | 400.00 | 2020/12/17 | 51.60 | Joint liability guarantee | None | None | 2020/12/17-2021/11/30 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/12/11 | 76.86 | Joint liability guarantee | None | None | 2020/12/11-2021/11/30 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2020/3/24 | 1,000.00 | 2020/12/16 | 210.00 | Joint liability guarantee | None | None | 2020/12/16-2021/11/30 | No | No |
| Shenzhen S.F. Intra-city Logistics Co., Ltd. | 2020/3/24 | 500.00 | 2020/12/16 | 15.00 | Joint liability guarantee | None | None | 2020/12/16-2021/9/30 | No | No |
| Shenzhen Shunlu Air Freight Forwarding Co., Ltd. | 2020/3/24 | 6,500.00 | 2020/12/16 | 2,238.00 | Joint liability guarantee | None | None | 2020/12/16-2021/12/31 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/12/9 | 22.55 | Joint liability guarantee | None | None | 2020/12/9-2021/11/20 | No | No |
| ZHONGSHAN S.F. EXPRESS CO. LTD | 2020/3/24 | 600.00 | 2020/12/8 | 255.12 | Joint liability guarantee | None | None | 2020/12/8-2021/12/2 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/12/9 | 49.56 | Joint liability guarantee | None | None | 2020/12/9-2021/10/31 | No | No |
| Shanxi S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2020/12/9 | 26.25 | Joint liability guarantee | None | None | 2020/12/9-2021/5/31 | Yes | No |
| S.F. Transportation (Changzhou) Co., Ltd. | 2020/3/24 | 200.00 | 2020/12/9 | 25.09 | Joint liability guarantee | None | None | 2020/12/9-2021/2/28 | Yes | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2020/12/9 | 271.26 | Joint liability guarantee | None | None | 2020/12/9-2021/2/28 | Yes | No |
| XI`AN S.F EXPRESS CO.,LTD | 2020/3/24 | 500.00 | 2020/12/9 | 1.38 | Joint liability guarantee | None | None | 2020/12/9-2021/10/31 | No | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/12/10 | 106.76 | Joint liability guarantee | None | None | 2020/12/10-2021/11/30 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2020/3/24 | 1,000.00 | 2020/12/8 | 107.75 | Joint liability guarantee | None | None | 2020/12/8-2021/11/30 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2020/3/24 | 1,000.00 | 2020/12/8 | 8.00 | Joint liability guarantee | None | None | 2020/12/8-2021/10/31 | No | No |
| S.F.Express(Dong Guan)Limited | 2020/3/24 | 4,000.00 | 2020/12/8 | 222.06 | Joint liability | None | None | 2020/12/8-2021/11/11 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| SF Express ChongQing CO.LTD | 2020/3/24 | 1,000.00 | 2020/12/3 | 110.00 | Joint liability guarantee | None | None | 2020/12/3-2021/12/31 | No | No |
| S.F. Express Group (Shanghai) Co., Ltd. | 2020/3/24 | 2,100.00 | 2020/12/2 | 10.00 | Joint liability guarantee | None | None | 2020/12/2-2021/11/20 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/12/2 | 20.00 | Joint liability guarantee | None | None | 2020/12/2-2021/9/30 | No | No |
| Wuxi S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2020/12/3 | 174.68 | Joint liability guarantee | None | None | 2020/12/3-2021/11/20 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/12/3 | 30.00 | Joint liability guarantee | None | None | 2020/12/3-2021/11/30 | No | No |
| QINGDAO S.F.EXPRESS CO.,LTD. | 2020/3/24 | 1,300.00 | 2020/12/3 | 260.00 | Joint liability guarantee | None | None | 2020/12/3-2021/11/30 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2020/12/3 | 600.00 | Joint liability guarantee | None | None | 2020/12/3-2021/11/25 | No | No |
| Liaoning Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,800.00 | 2020/12/3 | 420.00 | Joint liability guarantee | None | None | 2020/12/3-2021/10/31 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/12/3 | 27.78 | Joint liability guarantee | None | None | 2020/12/3-2022/4/3 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2020/3/24 | 1,000.00 | 2020/12/3 | 46.41 | Joint liability guarantee | None | None | 2020/12/3-2021/1/31 | Yes | No |
| Hunan SF Freight Co., Ltd. | 2020/3/24 | 200.00 | 2020/12/3 | 37.73 | Joint liability guarantee | None | None | 2020/12/3-2021/11/30 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2020/12/3 | 2.00 | Joint liability guarantee | None | None | 2020/12/3-2021/11/20 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/12/3 | 51.25 | Joint liability guarantee | None | None | 2020/12/3-2021/11/20 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,300.00 | 2020/12/9 | 1,159.78 | Joint liability guarantee | None | None | 2020/12/9-2021/12/14 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,300.00 | 2020/12/24 | 8.33 | Joint liability guarantee | None | None | 2020/12/24-2022/1/4 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2020/3/24 | 2,300.00 | 2020/12/24 | 12.49 | Joint liability guarantee | None | None | 2020/12/24-2022/1/4 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2020/12/10 | 70.90 | Joint liability guarantee | None | None | 2020/12/10-2021/11/4 | No | No |
| Guizhou Fengtai E-commerce Industrial Park Management Co., Ltd. | 2020/3/24 | 2,500.00 | 2020/12/18 | 2,320.54 | Joint liability guarantee | None | None | 2020/12/18-2021/5/1 | Yes | No |
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2020/12/30 | 6.81 | Joint liability guarantee | None | None | 2020/12/30-2021/12/23 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2020/12/28 | 77.01 | Joint liability guarantee | None | None | 2020/12/28-2021/11/15 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/12/8 | 135.73 | Joint liability guarantee | None | None | 2020/12/8-2021/12/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2020/12/8 | 118.51 | Joint liability guarantee | None | None | 2020/12/8-2021/11/30 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2020/12/23 | 5,100.00 | Joint liability guarantee | None | None | 2020/12/23-2021/10/31 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2020/3/24 | 750.00 | 2020/12/23 | 11.56 | Joint liability guarantee | None | None | 2020/12/23-2021/11/18 | No | No |
| Shenzhen Shunlu Air Freight Forwarding Co., Ltd. | 2020/3/24 | 6,500.00 | 2020/12/29 | 1,850.00 | Joint liability guarantee | None | None | 2020/12/29-2021/12/31 | No | No |
| S.F.Express(Dong Guan)Limited | 2020/3/24 | 4,000.00 | 2020/12/25 | 993.23 | Joint liability guarantee | None | None | 2020/12/25-2021/12/20 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2020/12/29 | 161.23 | Joint liability guarantee | None | None | 2020/12/29-2022/3/31 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2020/12/30 | 58.80 | Joint liability guarantee | None | None | 2020/12/30-2022/4/30 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2020/12/31 | 100.00 | Joint liability guarantee | None | None | 2020/12/31-2021/10/15 | No | No |
| SF LOGISTICS MEXICO SA de CV | 2020/3/24 | 500.00 | 2020/7/21 | 193.91 | Joint liability guarantee | None | None | 2020/7/21-2021/7/20 | No | No |
| Dongguan DHL Supply Chain Co., Ltd. | 2020/3/24 | 3,300.00 | 2020/8/1 | 3,000.00 | Joint liability guarantee | None | None | 2020/8/1-2025/7/31 | No | No |
| Yiwu Fengyutai Enterprise Management Co., Ltd. | 2020/3/24 | 2,000.00 | 2020/9/1 | 1,291.52 | Joint liability guarantee | None | None | 2020/9/1-2023/8/31 | No | No |
| Quanzhou Fengyutai Enterprise Management Co., Ltd. | 2020/3/24 | 1,500.00 | 2020/9/1 | 1,132.52 | Joint liability guarantee | None | None | 2020/9/1-2023/8/31 | No | No |
| Wuxi Jietai Enterprise Management Co., Ltd. | 2020/3/24 | 1,650.00 | 2020/9/1 | 1,598.21 | Joint liability guarantee | None | None | 2020/9/1-2023/8/31 | No | No |
| Huai'an Fengtai Enterprise Management Co., Ltd. | 2020/3/24 | 530.00 | 2020/9/1 | 495.83 | Joint liability guarantee | None | None | 2020/9/1-2023/8/31 | No | No |
| HaiNan S.F.Express LTD. | 2020/3/24 | 700.00 | 2021/1/4 | 150.00 | Joint liability guarantee | None | None | 2021/01/04-2021/12/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/1/4 | 200.00 | Joint liability guarantee | None | None | 2021/01/04-2021/06/30 | Yes | No |
| Xi'an Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,500.00 | 2021/1/4 | 547.78 | Joint liability guarantee | None | None | 2021/01/04-2021/12/31 | No | No |
| Beijing S.F. Express Co., LTD. | 2020/3/24 | 3,000.00 | 2021/1/5 | 350.00 | Joint liability guarantee | None | None | 2021/01/05-2021/12/31 | No | No |
| Beijing Shuncheng Logistics Co., Ltd. | 2020/3/24 | 8,000.00 | 2021/1/5 | 10.00 | Joint liability guarantee | None | None | 2021/01/05-2021/12/31 | No | No |
| Zhejiang Shun Feng Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2021/1/11 | 56.01 | Joint liability | None | None | 2021/01/11-2021/07/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2021/1/13 | 100.00 | Joint liability guarantee | None | None | 2021/01/13-2021/05/11 | Yes | No |
| QINGDAO S.F.EXPRESS CO.,LTD. | 2020/3/24 | 1,300.00 | 2021/1/13 | 180.00 | Joint liability guarantee | None | None | 2021/01/13-2021/12/19 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2021/1/13 | 7.88 | Joint liability guarantee | None | None | 2021/01/13-2021/12/31 | No | No |
| Haikou Fengtai Industrial Park Management Co., Ltd. | 2020/3/24 | 510.00 | 2021/1/15 | 367.27 | Joint liability guarantee | None | None | 2021/01/16-2021/10/06 | No | No |
| NINGBO SHUNFENG EXPRESS CO.,LTD. | 2020/3/24 | 3,000.00 | 2021/1/15 | 118.52 | Joint liability guarantee | None | None | 2021/01/15-2021/12/31 | No | No |
| Zhejiang Shun Feng Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2021/1/15 | 191.10 | Joint liability guarantee | None | None | 2021/01/15-2021/02/28 | Yes | No |
| Anhui Shunhe Freight Co., Ltd. | 2020/3/24 | 350.00 | 2021/1/18 | 23.45 | Joint liability guarantee | None | None | 2021/01/18-2021/12/31 | No | No |
| QINGDAO S.F.EXPRESS CO.,LTD. | 2020/3/24 | 1,300.00 | 2021/1/18 | 3.00 | Joint liability guarantee | None | None | 2021/01/18-2021/12/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/1/18 | 345.00 | Joint liability guarantee | None | None | 2021/01/18-2022/01/15 | No | No |
| SF Airlines Company Limited | 2020/3/24 | 220,000.00 | 2021/1/19 | 2,500.00 | Joint liability guarantee | None | None | 2021/01/19-2022/01/14 | No | No |
| S.F.Express(Dong Guan)Limited | 2020/3/24 | 4,000.00 | 2021/1/19 | 186.04 | Joint liability guarantee | None | None | 2021/01/19-2021/12/31 | No | No |
| Guangxi ShunFeng Express Co.,Ltd. | 2020/3/24 | 700.00 | 2021/1/21 | 70.00 | Joint liability guarantee | None | None | 2021/01/21-2022/01/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/1/21 | 54.64 | Joint liability guarantee | None | None | 2021/01/21-2022/04/30 | No | No |
| Beijing S.F. Express Co., LTD. | 2020/3/24 | 3,000.00 | 2021/1/21 | 30.00 | Joint liability guarantee | None | None | 2021/01/21-2022/01/31 | No | No |
| Guangxi ShunFeng Express Co.,Ltd. | 2020/3/24 | 700.00 | 2021/1/21 | 10.00 | Joint liability guarantee | None | None | 2021/01/21-2022/01/31 | No | No |
| S.F.EXPRESS (TIANJIN) CO., LTD. | 2020/3/24 | 300.00 | 2021/1/21 | 7.00 | Joint liability guarantee | None | None | 2021/01/21-2021/12/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/1/21 | 2.90 | Joint liability guarantee | None | None | 2021/01/21-2021/12/29 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2021/1/25 | 32.90 | Joint liability guarantee | None | None | 2021/01/25-2021/12/31 | No | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/1/26 | 250.00 | Joint liability guarantee | None | None | 2021/01/26-2021/12/31 | No | No |
| Quanzhou Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,300.00 | 2021/1/28 | 400.00 | Joint liability guarantee | None | None | 2021/01/28-2021/12/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Quanzhou Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,300.00 | 2021/1/28 | 300.00 | Joint liability guarantee | None | None | 2021/01/28-2021/12/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2021/1/28 | 46.41 | Joint liability guarantee | None | None | 2021/01/28-2022/02/28 | No | No |
| Guangdong S.F. E-commerce Co., Ltd. | 2020/3/24 | 500.00 | 2021/1/28 | 40.00 | Joint liability guarantee | None | None | 2021/01/28-2022/01/31 | No | No |
| QINGDAO S.F.EXPRESS CO.,LTD. | 2020/3/24 | 1,300.00 | 2021/1/28 | 40.00 | Joint liability guarantee | None | None | 2021/01/28-2021/11/30 | No | No |
| Hangzhou SF Zhida Logistics Co., Ltd. | 2020/3/24 | 1,350.00 | 2021/1/29 | 100.00 | Joint liability guarantee | None | None | 2021/01/29-2021/12/31 | No | No |
| Shanghai Solution Plus Supply Chain Co., Ltd. | 2020/3/24 | 1,000.00 | 2021/1/29 | 100.00 | Joint liability guarantee | None | None | 2021/01/29-2021/09/30 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/1/29 | 73.09 | Joint liability guarantee | None | None | 2021/01/29-2021/12/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/1/29 | 47.54 | Joint liability guarantee | None | None | 2021/01/29-2021/11/30 | No | No |
| Chengdu Taishun Logistics Co.,Ltd. | 2020/3/24 | 2,000.00 | 2021/2/2 | 69.00 | Joint liability guarantee | None | None | 2021/02/02-2021/12/31 | No | No |
| FS ELECTRONIC TECHNOLOGY CO., LIMITED | 2020/3/24 | 1,000.00 | 2021/2/2 | 20.81 | Joint liability guarantee | None | None | 2021/02/02-2021/12/31 | No | No |
| E COMMERCE FULFILLMENT COMPANY LTD | 2020/3/24 | 100.00 | 2021/2/4 | 21.36 | Joint liability guarantee | None | None | 2021/02/04-2021/11/11 | No | No |
| ZHONGSHAN S.F. EXPRESS CO. LTD | 2020/3/24 | 600.00 | 2021/2/2 | 120.61 | Joint liability guarantee | None | None | 2021/02/02-2021/12/09 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2021/2/3 | 1,993.18 | Joint liability guarantee | None | None | 2021/02/03-2022/01/31 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2021/2/3 | 144.20 | Joint liability guarantee | None | None | 2021/02/03-2021/12/25 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2020/3/24 | 1,800.00 | 2021/2/3 | 3.00 | Joint liability guarantee | None | None | 2021/02/03-2021/12/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/2/4 | 125.84 | Joint liability guarantee | None | None | 2021/02/04-2022/01/27 | No | No |
| Shandong SF Freight Co., Ltd. | 2020/3/24 | 1,000.00 | 2021/2/4 | 94.32 | Joint liability guarantee | None | None | 2021/02/04-2022/04/30 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2021/2/4 | 35.00 | Joint liability guarantee | None | None | 2021/02/04-2021/04/30 | Yes | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/2/4 | 10.00 | Joint liability guarantee | None | None | 2021/02/04-2021/11/30 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/2/4 | 60.00 | Joint liability guarantee | None | None | 2021/02/04-2022/01/15 | No | No |
| Wuhan SF Zhida Logistics Co., Ltd. | 2020/3/24 | 300.00 | 2021/2/4 | 50.00 | Joint liability | None | None | 2021/02/04-2021/11/30 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2021/2/7 | 10.00 | Joint liability guarantee | None | None | 2021/02/07-2021/12/31 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2020/3/24 | 1,000.00 | 2021/2/7 | 150.00 | Joint liability guarantee | None | None | 2021/02/07-2021/12/31 | No | No |
| Weihai S.F. Express Co., Ltd. | 2020/3/24 | 100.00 | 2021/2/7 | 1.00 | Joint liability guarantee | None | None | 2021/02/07-2021/12/31 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2021/2/26 | 500.00 | Joint liability guarantee | None | None | 2021/02/26-2022/03/01 | No | No |
| Shaanxi SF Freight Co., Ltd. | 2020/3/24 | 400.00 | 2021/2/26 | 6.52 | Joint liability guarantee | None | None | 2021/02/26-2022/02/07 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2020/3/24 | 2,000.00 | 2021/2/26 | 43.27 | Joint liability guarantee | None | None | 2021/02/26-2023/03/31 | No | No |
| Dongguan DHL Supply Chain Co., Ltd. | 2020/3/24 | 3,300.00 | 2021/2/26 | 372.66 | Joint liability guarantee | None | None | 2021/02/26-2022/02/28 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2020/3/24 | 1,600.00 | 2021/3/1 | 15.30 | Joint liability guarantee | None | None | 2021/03/01-2022/01/26 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2021/3/2 | 643.00 | Joint liability guarantee | None | None | 2021/03/02-2022/01/31 | No | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2020/3/24 | 2,000.00 | 2021/3/2 | 118.00 | Joint liability guarantee | None | None | 2021/03/02-2021/12/31 | No | No |
| Qingdao SF Freight Co., Ltd. | 2020/3/24 | 150.00 | 2021/3/8 | 55.81 | Joint liability guarantee | None | None | 2021/03/08-2022/01/31 | No | No |
| Xinjiang SF Express Co.,LTD. | 2020/3/24 | 210.00 | 2021/3/8 | 6.00 | Joint liability guarantee | None | None | 2021/03/08-2021/12/31 | No | No |
| Yantai S.F. Express Co., Ltd. | 2020/3/24 | 200.00 | 2021/3/8 | 85.00 | Joint liability guarantee | None | None | 2021/03/08-2022/01/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/3/9 | 10.00 | Joint liability guarantee | None | None | 2021/03/09-2021/11/30 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2021/3/9 | 45.37 | Joint liability guarantee | None | None | 2021/03/09-2022/02/28 | No | No |
| SF GLOBAL EXPRESS (M) SDN BHD | 2020/3/24 | 500.00 | 2021/3/9 | 23.35 | Joint liability guarantee | None | None | 2021/03/09-2022/04/15 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/5/18 | 200.00 | Joint liability guarantee | None | None | 2021/05/18-2022/11/11 | No | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/9 | 15.47 | Joint liability guarantee | None | None | 2021/03/09-2021/12/25 | No | No |
| Sichuan Shunhefeng Freight Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/9 | 10.88 | Joint liability guarantee | None | None | 2021/03/09-2022/01/31 | No | No |
| Wuhan SF Zhida Logistics Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/9 | 40.00 | Joint liability guarantee | None | None | 2021/03/09-2021/12/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Hubei S.F. Express Co., Ltd. | 2020/3/24 | 1,000.00 | 2021/3/16 | 15.00 | Joint liability guarantee | None | None | 2021/03/16-2021/12/31 | No | No |
| QINGDAO S.F.EXPRESS CO.,LTD. | 2020/3/24 | 1,300.00 | 2021/3/16 | 150.00 | Joint liability guarantee | None | None | 2021/03/16-2022/03/09 | No | No |
| Shandong S.F. Express Co., Ltd. | 2020/3/24 | 2,000.00 | 2021/3/16 | 35.00 | Joint liability guarantee | None | None | 2021/03/16-2022/01/31 | No | No |
| Shenzhen Fenglang Supply Chain Co., Ltd. | 2020/3/24 | 5,100.00 | 2021/3/16 | 321.40 | Joint liability guarantee | None | None | 2021/03/16-2022/03/10 | No | No |
| Shenzhen Fenglang Supply Chain Co., Ltd. | 2020/3/24 | 5,100.00 | 2021/3/16 | 300.50 | Joint liability guarantee | None | None | 2021/03/16-2022/03/08 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2021/3/16 | 3,000.00 | Joint liability guarantee | None | None | 2021/03/16-2022/03/11 | No | No |
| Nantong S.F. Express Co., Ltd. | 2020/3/24 | 200.00 | 2021/3/19 | 74.27 | Joint liability guarantee | None | None | 2021/03/19-2021/06/30 | Yes | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2020/3/24 | 5,000.00 | 2021/3/19 | 185.02 | Joint liability guarantee | None | None | 2021/03/19-2021/04/15 | Yes | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2020/3/24 | 1,400.00 | 2021/3/19 | 18.26 | Joint liability guarantee | None | None | 2021/03/19-2021/11/30 | No | No |
| SF Supply Chain (Hong Kong) Limited | 2020/3/24 | 2,100.00 | 2021/3/23 | 96.50 | Joint liability guarantee | None | None | 2021/03/22-2024/07/20 | No | No |
| Anhui S.F. Express Co., Ltd. | 2020/3/24 | 1,200.00 | 2021/3/23 | 4.56 | Joint liability guarantee | None | None | 2021/03/23-2022/01/18 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/23 | 14.77 | Joint liability guarantee | None | None | 2021/03/23-2022/02/28 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2020/3/24 | 8,400.00 | 2021/3/23 | 100.00 | Joint liability guarantee | None | None | 2021/03/23-2021/12/31 | No | No |
| Yunnan S.F. Express Co., Ltd. | 2020/3/24 | 500.00 | 2021/3/23 | 163.54 | Joint liability guarantee | None | None | 2021/03/23-2022/02/17 | No | No |
| Chengdu Shunyifeng Pharmaceutical Co., Ltd. | 2020/3/24 | 100.00 | 2021/3/25 | 43.63 | Joint liability guarantee | None | None | 2021/03/25-2022/03/12 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2020/3/24 | 2,500.00 | 2021/3/25 | 78.95 | Joint liability guarantee | None | None | 2021/03/25-2021/11/30 | No | No |
| Xi'an Shunlu Logistics Co., Ltd. | 2020/3/24 | 1,500.00 | 2021/3/25 | 202.98 | Joint liability guarantee | None | None | 2021/03/25-2022/01/27 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/26 | 12.74 | Joint liability guarantee | None | None | 2021/03/26-2021/08/31 | No | No |
| Wuhan SF Zhida Logistics Co., Ltd. | 2020/3/24 | 300.00 | 2021/3/26 | 100.00 | Joint liability guarantee | None | None | 2021/03/26-2021/06/02 | Yes | No |
| Xinjiang SF Express Co.,LTD. | 2020/3/24 | 210.00 | 2021/3/26 | 2.00 | Joint liability guarantee | None | None | 2021/03/26-2021/12/31 | No | No |
| S.F. Express Co., Ltd. | 2020/3/24 | 17,300.00 | 2021/3/30 | 300.00 | Joint liability | None | None | 2021/03/30-2022/03/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| DHL LOGISTICS（CHINA） CO.,LTD. | 2020/3/24 | 4,000.00 | 2021/3/31 | 76.73 | Joint liability guarantee | None | None | 2021/03/31-2021/06/09 | Yes | No |
| XI`AN S.F EXPRESS CO.,LTD | 2020/3/24 | 500.00 | 2021/3/30 | 56.87 | Joint liability guarantee | None | None | 2021/03/30-2022/03/09 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/4/8 | 500.00 | Joint liability guarantee | None | None | 2021/04/08-2022/02/28 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2020/3/24 | 10,000.00 | 2021/4/8 | 600.00 | Joint liability guarantee | None | None | 2021/04/08-2022/03/31 | No | No |
| Hebei S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/4/9 | 30.00 | Joint liability guarantee | None | None | 2021/04/09-2021/12/31 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/4/9 | 41.23 | Joint liability guarantee | None | None | 2021/04/09-2022/03/18 | No | No |
| SF Express ChongQing CO.LTD | 2021/3/18 | 1,000.00 | 2021/4/14 | 169.01 | Joint liability guarantee | None | None | 2021/04/14-2022/02/28 | No | No |
| Xinjiang SF Express Co.,LTD. | 2021/3/18 | 400.00 | 2021/4/15 | 9.49 | Joint liability guarantee | None | None | 2021/04/15-2021/10/31 | No | No |
| Yunnan Shunhe Freight Co., Ltd. | 2021/3/18 | 500.00 | 2021/4/15 | 50.27 | Joint liability guarantee | None | None | 2021/04/15-2022/05/06 | No | No |
| Shaanxi SF Freight Co., Ltd. | 2021/3/18 | 300.00 | 2021/4/23 | 122.83 | Joint liability guarantee | None | None | 2021/04/23-2022/07/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 362.00 | Joint liability guarantee | None | None | 2021/04/23-2022/04/30 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 300.00 | Joint liability guarantee | None | None | 2021/04/23-2022/01/15 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 500.00 | Joint liability guarantee | None | None | 2021/04/23-2022/03/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 500.00 | Joint liability guarantee | None | None | 2021/04/23-2022/03/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 600.00 | Joint liability guarantee | None | None | 2021/04/23-2022/04/15 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 500.00 | Joint liability guarantee | None | None | 2021/04/23-2022/03/31 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/23 | 500.00 | Joint liability guarantee | None | None | 2021/04/23-2022/03/31 | No | No |
| Tianjin SF Freight Co., Ltd. | 2021/3/18 | 200.00 | 2021/4/15 | 35.83 | Joint liability guarantee | None | None | 2021/04/15-2022/01/14 | No | No |
| Anhui S.F. Express Co., Ltd. | 2021/3/18 | 7,500.00 | 2021/4/14 | 10.00 | Joint liability guarantee | None | None | 2021/04/14-2022/05/31 | No | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/14 | 300.00 | Joint liability guarantee | None | None | 2021/04/14-2022/01/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Guizhou S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/4/14 | 64.96 | Joint liability guarantee | None | None | 2021/04/14-2022/03/31 | No | No |
| Jiaxing S.F. Transportation Co., Ltd. | 2021/3/18 | 300.00 | 2021/4/14 | 113.57 | Joint liability guarantee | None | None | 2021/04/14-2022/06/30 | No | No |
| Shaanxi SF Freight Co., Ltd. | 2021/3/18 | 300.00 | 2021/4/14 | 2.90 | Joint liability guarantee | None | None | 2021/04/14-2022/04/04 | No | No |
| NINGBO SHUNFENG EXPRESS CO.,LTD. | 2021/3/18 | 1,500.00 | 2021/4/14 | 400.00 | Joint liability guarantee | None | None | 2021/04/14-2022/05/06 | No | No |
| XIAMEN SHUNFENG EXPRESS CO.,LTD. | 2021/3/18 | 1,000.00 | 2021/4/14 | 100.00 | Joint liability guarantee | None | None | 2021/04/14-2021/07/31 | No | No |
| Beijing S.F. Express Co., LTD. | 2021/3/18 | 2,000.00 | 2021/4/14 | 100.00 | Joint liability guarantee | None | None | 2021/04/14-2022/04/20 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/4/14 | 62.00 | Joint liability guarantee | None | None | 2021/04/14-2022/02/28 | No | No |
| S.F. Express Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/4/14 | 300.00 | Joint liability guarantee | None | None | 2021/04/14-2022/03/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2021/3/18 | 8,250.00 | 2021/4/15 | 720.00 | Joint liability guarantee | None | None | 2021/04/15-2021/10/30 | No | No |
| Shandong S.F. Express Co., Ltd. | 2021/3/18 | 1,500.00 | 2021/4/15 | 5.00 | Joint liability guarantee | None | None | 2021/04/15-2021/05/31 | Yes | No |
| Sichuan S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/4/22 | 5.00 | Joint liability guarantee | None | None | 2021/04/22-2022/01/31 | No | No |
| Guangzhou Huiyi Logistics Co., Ltd. | 2021/3/18 | 2,600.00 | 2021/4/22 | 25.00 | Joint liability guarantee | None | None | 2021/04/22-2022/02/28 | No | No |
| S.F. Express Co.,Ltd. | 2021/3/18 | 1,000.00 | 2021/5/31 | 49.71 | Joint liability guarantee | None | None | 2021/05/31-2022/01/14 | No | No |
| Changchun SF Freight Co., Ltd. | 2021/3/18 | 300.00 | 2021/4/28 | 49.01 | Joint liability guarantee | None | None | 2021/04/28-2021/10/21 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2021/3/18 | 2,500.00 | 2021/4/30 | 50.00 | Joint liability guarantee | None | None | 2021/04/30-2022/04/22 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2021/3/18 | 2,500.00 | 2021/4/30 | 20.00 | Joint liability guarantee | None | None | 2021/04/30-2022/04/22 | No | No |
| Sichuan S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/4/29 | 11.61 | Joint liability guarantee | None | None | 2021/04/29-2022/04/21 | No | No |
| S.F. Express Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/4/30 | 83.37 | Joint liability guarantee | None | None | 2021/04/30-2021/07/31 | No | No |
| S.F.Express(Dong Guan)Limited | 2021/3/18 | 2,500.00 | 2021/4/30 | 15.03 | Joint liability guarantee | None | None | 2021/04/30-2022/04/22 | No | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2021/3/18 | 700.00 | 2021/4/28 | 3.83 | Joint liability guarantee | None | None | 2021/04/28-2021/09/30 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2021/3/18 | 1,600.00 | 2021/4/28 | 20.00 | Joint liability | None | None | 2021/04/28-2022/04/20 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| HENAN S.F.EXPRESS CO.,LTD | 2021/3/18 | 500.00 | 2021/4/30 | 15.00 | Joint liability guarantee | None | None | 2021/04/30-2022/04/22 | No | No |
| HaiNan S.F.Express LTD. | 2021/3/18 | 600.00 | 2021/4/30 | 35.00 | Joint liability guarantee | None | None | 2021/04/30-2022/02/04 | No | No |
| EXEL LOGISTICS CHINA CO.,LTD. | 2021/3/18 | 1,600.00 | 2021/4/30 | 133.25 | Joint liability guarantee | None | None | 2021/04/30-2024/04/30 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/4/30 | 20.28 | Joint liability guarantee | None | None | 2021/04/30-2022/04/04 | No | No |
| S.F. Express Group (Shanghai) Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/5/6 | 100.00 | Joint liability guarantee | None | None | 2021/05/06-2022/05/04 | No | No |
| XI`AN S.F EXPRESS CO.,LTD | 2021/3/18 | 150.00 | 2021/5/18 | 28.29 | Joint liability guarantee | None | None | 2021/05/18-2022/05/07 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2021/3/18 | 1,000.00 | 2021/5/20 | 16.75 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| SF Express ChongQing CO.LTD | 2021/3/18 | 1,000.00 | 2021/5/18 | 169.01 | Joint liability guarantee | None | None | 2021/05/18-2021/12/31 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/20 | 3.83 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/20 | 1.00 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| HENAN S.F.EXPRESS CO.,LTD | 2021/3/18 | 500.00 | 2021/5/20 | 33.00 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Liaoning Shunlu Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/20 | 86.41 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| S.F.EXPRESS OF DALIAN L.T.D | 2021/3/18 | 500.00 | 2021/5/20 | 296.28 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Shenzhen SF Fix Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/5/20 | 1,600.00 | Joint liability guarantee | None | None | 2021/05/20-2022/06/30 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/5/20 | 58.44 | Joint liability guarantee | None | None | 2021/05/20-2021/12/08 | No | No |
| Wenzhou Shunheng Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/20 | 437.92 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Taizhou S.F. Express Co., Ltd. | 2021/3/18 | 500.00 | 2021/5/20 | 304.95 | Joint liability guarantee | None | None | 2021/05/20-2022/05/13 | No | No |
| Zhejiang Shunlu Logistics Co.,Ltd. | 2021/3/18 | 34,000.00 | 2021/5/20 | 108.78 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/5/25 | 21.60 | Joint liability guarantee | None | None | 2021/05/25-2022/05/13 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/5/20 | 31.35 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shandong S.F. Express Co., Ltd. | 2021/3/18 | 1,500.00 | 2021/5/20 | 146.75 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Shandong S.F. Express Co., Ltd. | 2021/3/18 | 1,500.00 | 2021/5/20 | 107.96 | Joint liability guarantee | None | None | 2021/05/20-2022/05/07 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2021/3/18 | 8,250.00 | 2021/5/14 | 50.00 | Joint liability guarantee | None | None | 2021/05/14-2022/05/14 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2021/3/18 | 25,000.00 | 2021/5/18 | 83.26 | Joint liability guarantee | None | None | 2021/05/21-2022/05/21 | No | No |
| Hubei S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/5/25 | 26.94 | Joint liability guarantee | None | None | 2021/05/25-2022/04/30 | No | No |
| Shenzhen Fenglang Supply Chain Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/5/14 | 171.00 | Joint liability guarantee | None | None | 2021/05/14-2021/11/10 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2021/3/18 | 8,250.00 | 2021/5/12 | 17.00 | Joint liability guarantee | None | None | 2021/05/12-2021/07/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2021/3/18 | 8,250.00 | 2021/5/14 | 250.00 | Joint liability guarantee | None | None | 2021/05/14-2021/12/31 | No | No |
| Huai'an S.F. Express Co., Ltd. | 2021/3/18 | 200.00 | 2021/5/18 | 63.54 | Joint liability guarantee | None | None | 2021/05/18-2022/04/22 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/18 | 321.24 | Joint liability guarantee | None | None | 2021/05/18-2022/05/07 | No | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/18 | 412.33 | Joint liability guarantee | None | None | 2021/05/18-2022/05/07 | No | No |
| Wenzhou Shunheng Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/18 | 110.00 | Joint liability guarantee | None | None | 2021/05/18-2021/11/04 | No | No |
| Wuhan SF Cold Chain Supply Chain Co., Ltd. | 2021/3/18 | 60.00 | 2021/5/18 | 10.00 | Joint liability guarantee | None | None | 2021/05/18-2022/04/19 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/5/26 | 200.00 | Joint liability guarantee | None | None | 2021/05/26-2022/05/13 | No | No |
| Shanxi S.F. Express Co., Ltd. | 2021/3/18 | 100.00 | 2021/5/26 | 6.00 | Joint liability guarantee | None | None | 2021/05/26-2021/12/31 | No | No |
| Shanxi S.F. Express Co., Ltd. | 2021/3/18 | 100.00 | 2021/5/26 | 35.00 | Joint liability guarantee | None | None | 2021/05/26-2021/12/31 | No | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/18 | 80.00 | Joint liability guarantee | None | None | 2021/05/18-2022/05/07 | No | No |
| Shenzhen Shunlu Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/26 | 40.00 | Joint liability guarantee | None | None | 2021/05/26-2022/05/07 | No | No |
| Guangdong S.F. E-commerce Co., Ltd. | 2021/3/18 | 14,000.00 | 2021/5/26 | 310.58 | Joint liability guarantee | None | None | 2021/05/26-2021/12/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/5/27 | 21.84 | Joint liability guarantee | None | None | 2021/05/27-2022/05/15 | No | No |
| Shenzhen S.F. Supply Chain Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/5/27 | 790.00 | Joint liability | None | None | 2021/05/27-2022/04/30 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Hunan,S.F.Express(Group)Co.,Ltd. | 2021/3/18 | 1,500.00 | 2021/5/27 | 217.56 | Joint liability guarantee | None | None | 2021/05/27-2022/05/13 | No | No |
| Zhejiang Shunhefeng Freight Co., Ltd. | 2021/3/18 | 800.00 | 2021/5/28 | 82.53 | Joint liability guarantee | None | None | 2021/05/28-2022/05/18 | No | No |
| S. F. Express (Shenyang) Co., Ltd | 2021/3/18 | 1,000.00 | 2021/5/28 | 48.00 | Joint liability guarantee | None | None | 2021/05/28-2022/05/17 | No | No |
| Tianjin SF Juyi Logistics Co., Ltd. | 2021/3/18 | 600.00 | 2021/5/28 | 20.81 | Joint liability guarantee | None | None | 2021/05/28-2022/05/25 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2021/3/18 | 1,600.00 | 2021/5/28 | 35.28 | Joint liability guarantee | None | None | 2021/05/28-2022/05/14 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/5/31 | 300.00 | Joint liability guarantee | None | None | 2021/05/31-2022/05/14 | No | No |
| S.F. Express Co.,Ltd. | 2021/3/18 | 1,000.00 | 2021/5/31 | 497.15 | Joint liability guarantee | None | None | 2021/05/31-2022/06/30 | No | No |
| Henan Huihai Logistics Co., Ltd. | 2021/3/18 | 500.00 | 2021/5/28 | 149.76 | Joint liability guarantee | None | None | 2021/05/28-2022/05/07 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2021/3/18 | 2,500.00 | 2021/6/4 | 1.88 | Joint liability guarantee | None | None | 2021/06/04-2022/03/31 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/8 | 16.64 | Joint liability guarantee | None | None | 2021/06/08-2021/12/31 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/8 | 0.76 | Joint liability guarantee | None | None | 2021/06/08-2022/05/07 | No | No |
| Zhejiang Shuangjie Supply Chain Technology Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/6/8 | 9.00 | Joint liability guarantee | None | None | 2021/06/08-2022/05/07 | No | No |
| S.F.Express(Dong Guan)Limited | 2021/3/18 | 2,500.00 | 2021/6/1 | 61.45 | Joint liability guarantee | None | None | 2021/06/01-2022/06/30 | No | No |
| Anhui S.F. Express Co., Ltd. | 2021/3/18 | 7,500.00 | 2021/6/1 | 180.00 | Joint liability guarantee | None | None | 2021/06/01-2022/05/31 | No | No |
| Guang Zhou S.F. Express Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/6/3 | 267.91 | Joint liability guarantee | None | None | 2021/06/03-2021/12/31 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/6/1 | 11.38 | Joint liability guarantee | None | None | 2021/06/01-2022/04/30 | No | No |
| Guizhou S.F. Express Co., Ltd. | 2021/3/18 | 400.00 | 2021/6/1 | 12.28 | Joint liability guarantee | None | None | 2021/06/01-2022/04/30 | No | No |
| Hangzhou SF Zhida Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/4 | 256.59 | Joint liability guarantee | None | None | 2021/06/04-2022/05/18 | No | No |
| Shandong SF Freight Co., Ltd. | 2021/3/18 | 600.00 | 2021/6/3 | 177.19 | Joint liability guarantee | None | None | 2021/06/03-2022/05/19 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/6/3 | 107.41 | Joint liability guarantee | None | None | 2021/06/03-2021/12/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/8 | 60.00 | Joint liability guarantee | None | None | 2021/06/08-2021/07/31 | No | No |
| Shenzhen SF Comprehensive Logistics Service Co., Ltd. | 2021/3/18 | 8,250.00 | 2021/6/8 | 456.00 | Joint liability guarantee | None | None | 2021/06/08-2022/06/30 | No | No |
| SF-Express(Ningxia)Co.,Ltd | 2021/3/18 | 100.00 | 2021/6/9 | 0.50 | Joint liability guarantee | None | None | 2021/06/09-2021/12/31 | No | No |
| S.F. Express Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/6/1 | 100.00 | Joint liability guarantee | None | None | 2021/06/01-2022/04/30 | No | No |
| Zhanjiang S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/4 | 54.56 | Joint liability guarantee | None | None | 2021/06/04-2022/05/13 | No | No |
| FS TECHNOLOGY MACAU CO.,LTD. | 2021/3/18 | 70.00 | 2021/6/7 | 19.39 | Joint liability guarantee | None | None | 2021/06/07-2021/12/31 | No | No |
| Anhui S.F. Express Co., Ltd. | 2021/3/18 | 7,500.00 | 2021/6/11 | 59.72 | Joint liability guarantee | None | None | 2021/06/11-2022/08/31 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2021/3/18 | 1,600.00 | 2021/6/11 | 78.38 | Joint liability guarantee | None | None | 2021/06/11-2022/05/10 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/11 | 295.84 | Joint liability guarantee | None | None | 2021/06/11-2022/05/25 | No | No |
| Shanghai Shuncheng Logistics Co., Ltd. | 2021/3/18 | 1,200.00 | 2021/6/11 | 380.00 | Joint liability guarantee | None | None | 2021/06/11-2022/05/31 | No | No |
| Shanghai Shunheng Logistics Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/6/11 | 66.51 | Joint liability guarantee | None | None | 2021/06/11-2022/05/31 | No | No |
| S.F.Express(Dong Guan)Limited | 2021/3/18 | 2,500.00 | 2021/6/11 | 459.47 | Joint liability guarantee | None | None | 2021/06/11-2022/08/31 | No | No |
| EXEL Technology Solution (Shanghai) Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/11 | 530.03 | Joint liability guarantee | None | None | 2021/06/11-2021/10/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2021/3/18 | 5,700.00 | 2021/6/11 | 57.25 | Joint liability guarantee | None | None | 2021/06/11-2021/07/31 | No | No |
| Guangdong S.F. E-commerce Co., Ltd. | 2021/3/18 | 14,000.00 | 2021/6/11 | 200.00 | Joint liability guarantee | None | None | 2021/06/11-2022/05/31 | No | No |
| Hubei S.F. Transportation Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/9 | 323.29 | Joint liability guarantee | None | None | 2021/06/09-2022/05/09 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/11 | 60.35 | Joint liability guarantee | None | None | 2021/06/11-2022/08/31 | No | No |
| Anhui S.F. Express Co., Ltd. | 2021/3/18 | 7,500.00 | 2021/6/17 | 99.37 | Joint liability guarantee | None | None | 2021/06/17-2022/05/31 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2021/3/18 | 5,500.00 | 2021/6/17 | 45.17 | Joint liability guarantee | None | None | 2021/06/17-2022/06/09 | No | No |
| Beijing S.F. Express Co., LTD. | 2021/3/18 | 2,000.00 | 2021/6/17 | 172.87 | Joint liability guarantee | None | None | 2021/06/17-2022/06/09 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2021/3/18 | 5,700.00 | 2021/6/17 | 82.28 | Joint liability | None | None | 2021/06/17-2022/05/31 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| guarantee | ||||||||||
| Guangxi ShunFeng Express Co.,Ltd. | 2021/3/18 | 500.00 | 2021/6/17 | 200.00 | Joint liability guarantee | None | None | 2021/06/17-2022/01/31 | No | No |
| DHL LOGISTICS（CHINA） CO.,LTD. | 2021/3/18 | 1,600.00 | 2021/6/15 | 76.73 | Joint liability guarantee | None | None | 2021/06/15-2022/05/23 | No | No |
| Henan Huihai Logistics Co., Ltd. | 2021/3/18 | 500.00 | 2021/6/17 | 26.00 | Joint liability guarantee | None | None | 2021/06/17-2022/06/09 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/17 | 91.63 | Joint liability guarantee | None | None | 2021/06/17-2022/06/05 | No | No |
| Xiamen Fengyutai Industrial Park Management Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/18 | 738.41 | Joint liability guarantee | None | None | 2021/06/18-2021/12/11 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/6/17 | 700.00 | Joint liability guarantee | None | None | 2021/06/17-2022/03/26 | No | No |
| Shenzhen Fengyi Technology Co., Ltd. | 2021/3/18 | 20,000.00 | 2021/6/17 | 100.00 | Joint liability guarantee | None | None | 2021/06/17-2022/06/09 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/17 | 96.96 | Joint liability guarantee | None | None | 2021/06/17-2021/12/31 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/18 | 46.59 | Joint liability guarantee | None | None | 2021/06/18-2022/05/31 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/18 | 692.81 | Joint liability guarantee | None | None | 2021/06/18-2022/06/05 | No | No |
| Jinhua S.F. Express Co., Ltd. | 2021/3/18 | 100.00 | 2021/6/18 | 5.00 | Joint liability guarantee | None | None | 2021/06/18-2022/04/30 | No | No |
| Liaoning Shunhe Supply Chain Management Co., Ltd. | 2021/3/18 | 700.00 | 2021/6/18 | 7.00 | Joint liability guarantee | None | None | 2021/06/18-2022/04/30 | No | No |
| Shandong S.F. Express Co., Ltd. | 2021/3/18 | 1,500.00 | 2021/6/18 | 31.58 | Joint liability guarantee | None | None | 2021/06/18-2022/06/09 | No | No |
| Shandong S.F. Express Co., Ltd. | 2021/3/18 | 1,500.00 | 2021/6/18 | 94.74 | Joint liability guarantee | None | None | 2021/06/18-2022/06/09 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/18 | 64.17 | Joint liability guarantee | None | None | 2021/06/18-2021/11/30 | No | No |
| S.F.EXPRESS (TIANJIN) CO., LTD. | 2021/3/18 | 300.00 | 2021/6/18 | 50.00 | Joint liability guarantee | None | None | 2021/06/18-2021/12/31 | No | No |
| Jiangsu S.F. Express Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/25 | 9.57 | Joint liability guarantee | None | None | 2021/06/25-2022/06/22 | No | No |
| Jiangsu Shunhefeng Freight Co., Ltd. | 2021/3/18 | 3,000.00 | 2021/6/21 | 74.85 | Joint liability guarantee | None | None | 2021/06/21-2022/06/05 | No | No |
| Jiangxi S.F. Express Co., Ltd. | 2021/3/18 | 500.00 | 2021/6/21 | 223.43 | Joint liability guarantee | None | None | 2021/06/21-2022/10/13 | No | No |
| Liaoning Shunlu Logistics Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/25 | 172.09 | Joint liability guarantee | None | None | 2021/06/25-2022/06/12 | No | No |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Shanghai Shunheng Logistics Co., Ltd. | 2021/3/18 | 5,000.00 | 2021/6/25 | 185.02 | Joint liability guarantee | None | None | 2021/06/25-2022/01/31 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/11 | 96.96 | Joint liability guarantee | None | None | 2021/06/11-2021/12/31 | No | No |
| Shenzhen Shuncheng Supply Chain Service Co., Ltd. | 2021/3/18 | 1,000.00 | 2021/6/21 | 14.54 | Joint liability guarantee | None | None | 2021/06/21-2022/06/09 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/25 | 67.45 | Joint liability guarantee | None | None | 2021/06/25-2022/06/15 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/6/25 | 25.21 | Joint liability guarantee | None | None | 2021/06/25-2022/04/30 | No | No |
| S.F. Express Co., Ltd. | 2021/3/18 | 2,000.00 | 2021/6/25 | 200.00 | Joint liability guarantee | None | None | 2021/06/25-2021/12/31 | No | No |
| Suzhou Industrial Park S.F. Express Co., Ltd. | 2021/3/18 | 2,500.00 | 2021/6/21 | 400.64 | Joint liability guarantee | None | None | 2021/06/21-2022/06/09 | No | No |
| Chongqing SF Zhida Supply Chain Management Co., Ltd. | 2021/3/18 | 400.00 | 2021/6/21 | 70.11 | Joint liability guarantee | None | None | 2021/06/21-2022/07/31 | No | No |
| DSC Logistics (Beijing) Co., Ltd note1 | 2021/3/18 | 5,700.00 | 2021/6/21 | 15.00 | Joint liability guarantee | None | None | 2021/06/21-2022/06/28 | No | No |
| S.F.EXPRESS OF DALIAN L.T.D | 2021/3/18 | 500.00 | 2021/6/30 | 79.58 | Joint liability guarantee | None | None | 2021/06/30-2021/08/13 | No | No |
| SF Airlines Company Limited | 2021/3/18 | 72,000.00 | 2021/4/23 | 11.63 | Joint liability guarantee | None | None | 2021/04/23-2022/04/15 | No | No |
| HAVI Logistics (Dongguan) Co., Ltd. | 2021/3/18 | 4,500.00 | 2021/4/16 | 3,750.00 | Joint liability guarantee | None | None | 2021/4/16-2026/4/16 | No | No |
| SF Fengtai Industrial Park Holdings Limited | 2021/3/18 | 550,100.00 | 2021/4/29 | 495,818.52 | Joint liability guarantee | None | None | 2021/4/29-2066/1/20 | No | No |
| S.F. EXPRESS (CHINA) LIMITED | 2021/3/18 | 25,000.00 | 2021/5/1 | 7,779.52 | Joint liability guarantee | None | None | 2021/5/1-2029/4/30 | No | No |
| S.F. EXPRESS (HONG KONG) LIMITED | 2021/3/18 | 25,000.00 | 2021/5/1 | 7,520.31 | Joint liability guarantee | None | None | 2021/5/1-2029/4/30 | No | No |
| Foshan S.F. Express Co., Ltd. | 2021/3/18 | 10,700.00 | 2021/5/1 | 5,171.88 | Joint liability guarantee | None | None | 2021/5/1-2029/4/30 | No | No |
| Anhui Shunhe Freight Co., Ltd. | 2021/3/18 | 5,500.00 | 2021/5/1 | 864.06 | Joint liability guarantee | None | None | 2021/5/1-2029/4/30 | No | No |
| Anhui S.F. Express Co., Ltd. | 2021/3/18 | 7,500.00 | 2021/5/1 | 1,069.63 | Joint liability guarantee | None | None | 2021/5/1-2029/4/30 | No | No |
| Wuhu Fengtai E-commerce Industrial Park Management Co., Ltd. | 2021/3/18 | 10,100.00 | 2021/4/25 | 10,000.00 | Joint liability guarantee | Foshan Project Real Estate | None | 2021/4/25-2026/4/22 | No | No |
| Total guarantee quota approved for subsidiaries during the reporting period (C1) | 2,685,000.00 | Total actual amount of guarantees for subsidiaries during the reporting period (C2) | 574,174.58 | |||||||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Total guarantee quota approved for the subsidiaries at the end of the reporting period (C3) | 2,797,753.68 | Total actual guarantee balance for subsidiaries at the end of the reporting period (C4) | 668,636.06 | ||
| Total guarantee amount provided by the Company (i.e the total amount of the above three major items) | |||||
| Total guarantee quota approved during the reporting period (A1+B1+C1) | 6,498,180.00 | Total actual amount of guarantee during the reporting period (A2+B2+C2) | 574,174.58 | ||
| Total guarantee quota approved at the end of the reporting period (A3+B3+C3) | 7,715,843.68 | Total actual guarantee balance at the end of the reporting period (A4+B4+C4) | 1,456,928.06 | ||
| Total guarantee amount (A4+B4+C4) to net assets of the Company | 25.70% | ||||
| Of which: | |||||
| Amount of guarantee for shareholders, actual controller, and their related parties (D) | - | ||||
| Amount of debt guarantee provided for guaranteed party whose asset-liability ratio is not less than 70% directly or indirectly (E) | 563,827.00 | ||||
| Amount of total guarantee over 50% of net assets (F) | - | ||||
| Total amount of the above three guarantees (D+E+F) | 563,827.00 | ||||
| Explanation of warranty liability or possible joint liquidation (if any) | N/A | ||||
| Explanation of provision of guarantees for external parties in violation of the prescribed procedure (if any) | N/A | ||||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
3. Entrusted funds
√ Applicable □ Not applicable
Unit: RMB10 thousands
| Type | Funding Source for Entrusted Funds | Maximum Daily Balance of Such Entrusted Funds During the Reporting Period | Unexpired Balance | Overdue Outstanding Amount | Impairment Provision of Overdue Outstanding Funds |
| Bank wealth management products | Self-owned fund | 1,729,000.00 | 999,000.00 | - | - |
| Total | 1,729,000.00 | 999,000.00 | - | - | |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Issuance Examination Committee of the China Securities Regulatory Commission(CSRC). So far, the Company has not received anywritten approval from the CSRC.For details, please refer to the Company’s announcements (2021-013, 2021-014, 2021-025, 2021-061, 2021-062, 2021-063,2021-064, and 2021-076) disclosed on Cninfo.
2. Tender offer to acquire 51.8% equity of Kerry Logistics
In order to further enhance the Company's capability of integrating integrated logistics solutions, improve the strategic layoutof freight forwarding and international business, at the 11th meeting of the 5th session of the Board of Directors, the 16th meeting ofthe 5th session of the Board of Directors and the 2021 third extraordinary general meeting convened by the Company on February 8,May 28, and June 15, 2021 respectively, the resolution regarding tender offer to acquire 51.8% equity of Kerry Logistics wasreviewed and approved, and the Company intended to, through its wholly-owned subsidiary, Flourish Harmony Holdings CompanyLimited, subject to the fulfillment or waiver of the conditions precedent, issue tender offers to eligible shareholders and share optionholders of Kerry Logistics Network Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited(hereinafter referred to as the “HK Stock Exchange”) (stock abbreviation: Kerry Logistics; stock code: 00636.HK), to acquire931,209,117 shares (approximately 51.8% of the issued share capital or 51.5% of the fully diluted share capital) of Kerry Logistics incash, and cancel 51.8% of Kerry Logistics’s share options that had not been exercised as at the final vesting date held by KerryLogistics’s share option holders on behalf of Kerry Logistics. If the transaction is successfully completed, Kerry Logistics will stillmaintain its listing status on the Main Board of the HK Stock Exchange. This transaction is a cross-border tender offer, On August 9,2021, all the pre-conditions for this transaction have been fulfilled or waived. On August 12, 2021, the offeror and the targetcompany jointly sent the comprehensive offer documents. As of now, the transaction has not been closed yet.For details, please refer to the Company’s announcements (2021-013, 2021-015, 2021-070, 2021-073, 2021-080, 2021-090,2021-093, 2021-094) disclosed on Cninfo.
3. Setting up a real estate investment trust that is intended to be listed on the HK Stock Exchange
In order to support the sustainable and healthy development of the Company's logistics industrial park, develop innovativefinancing channels, and build an asset-light capital operation platform for the industrial park, the Company planned to set up a realestate investment trust (hereinafter referred to as the “SF REIT”) in Hong Kong and go public on the HK Stock Exchange with thethree properties located in Foshan, Wuhu and Hong Kong within China in respective as its foundation assets which are indirectly heldby the Company through its overseas holding subsidiaries. At the 14th meeting of the 5th session of the Board of Directors convenedby the Company on April 27, 2021, the resolution regarding setting up the SF REIT in Hong Kong and being listed on the MainBoard of the HK Stock Exchange by its holding subsidiaries was reviewed and approved. The Company receieved the approval forthe establishment application and listing application of the SF REIT by the HK SFC and the HK Stock Exchange on May 3, 2021 andMay 14, 2021, respectively. The SF REIT has been listed on the Main Board of the HK Stock Exchange since May 17, 2021, with thestock code of “2191.HK” and the stock abbreviation of “SF REIT”. After the listing of SF REIT Fund, the Company indirectly holds35% of its shares through subsidiaries. The Company's transfer of the interests of three property assets to the SF REIT Fund broughta one-off equity investment income before tax of approximately HK$1.08 billion (equivalent to approximately RMB896 million).
For details, please refer to the Company’s announcements (2021-023, 2021-057, 2021-058, and 2021-066) disclosed on Cninfo.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
4. Intra-city Industrial Spin-off and going public on the Main Board of the HK Stock Exchange
In order to expand the Company's diversified financing channels, at the 16th meeting of the 5th session of the Board ofDirectors, the 15th meeting of the 5th session of the Board of Supervisors and the 2021 third extraordinary general meeting convenedby the Company on May 28, 2021 and June 15, 2021 respectively, it was agreed to spin off its subsidiary Hangzhou SF Intra-cityIndustrial Co., Ltd. (hereinafter referred to as “Intra-city Industrial”) and go public on the Main Board of the HK Stock Exchange(hereinafter referred to as the “H-share Issuance”).The spin-off and listing will build an international capital operation platform for Intra-city Industrial, enhance its brandawareness and market influence, continue to consolidate and strengthen the core resources of Intra-city Industrial, and promote therapid development of its business. At the same time, the spin-off will also help further expand the Company's diversified financingchannels and will become an important milestone in the Company's diversified layout strategy. After the spin-off and listing,Intra-city Industrial remains the Company’s holding subsidiary, and will not have any material adverse impact on the Company’scontinued operations of other business segments, and will not affect the Company’s independent listing status, which is conducive toenhancing the Company’s comprehensive competitiveness, and in line with the overall interests of the Company’s shareholders.Up till now, the H-share Issuance of Intra-city Industrial has been accepted by the CSRC, and Intra-city Industrial has alsosubmitted application materials for the issuance of H-share to the HK Stock Exchange. The issuance still needs to obtain the approvalfrom the CSRC, the HK SFC and the HK Stock Exchange.
For details, please refer to the Company’s announcements (2021-070, 2021-071, 2021-072, 2021-080, 2021-084, and 2021-085)disclosed on Cninfo.
5. Issuance of debt financing products in domestic and international markets by wholly-owned subsidiaries
In order to satisfy the development requirements of domestic and international business, reduce financing costs and optimizethe debt structure according to the development strategies of the Company, at the 11th meeting of the 5th session of Board ofDirectors and the 2021 second extraordinary general meeting convened by the Company on February 8, 2021 and March 2, 2021respectively, the “Resolution regarding the Issuance of Debt Financing Products in Domestic and International Markets byWholly-owned Subsidiaries” was reviewed and approved, and the Company was authorised to issue debt financing products indomestic and international markets through Taisen Holding and SF Holding Investment 2021 Limited (“SFHI 2021”), thewholly-owned subsidiaries, for an equivalent amount of no more than RMB20 billion (inclusive), including RMB18 billion which arethe expected size of issuance in international market.
According to the Notice of Acceptance for Registration issued by NAFMII (Zhong Shi Xie Zhu [2019] SCP No.71), TaisenHolding completed altogether two issuances of Super Short-Term Commercial Paper on March 18, 2021 and March 19, 2021respectively, each with an issuance quota of RMB500 million.
According to the Approval of the Issuance of Corporate Bonds to Qualified Investors via a Public Offering by Shenzhen S.F.Taisen Holding (Group) Co., Ltd. (Zheng Jian Xu Ke [2019] No. 388) from the CSRC, from April 23, 2021 to April 26, 2021, TaisenHolding completed the 2021 public offering of green corporate bonds (first tranche) (specially used for carbon neutrality), with anissuance scale of RMB500 million.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
According to the Approval of the Issuance of Short–Trerm Corporate Bonds to Professional Investors via a Public Offering byShenzhen S.F. Taisen Holding (Group) Co., Ltd. (Zheng Jian Xu Ke [2020] No. 1964) from the CSRC, from May 20, 2021 to May 21,2021, Taisen Holding completed the 2021 public offering of short–trerm corporate bonds (first tranche), with an issuance scale ofRMB1 billion; and from June 3, 2021 to June 4, 2021, Taisen Holding completed the 2021 public offering of short–trerm corporatebonds (second tranche), with an issuance scale of RMB500 million.
For details, please refer to the Company’s announcements (2021-013, 2021-017, 2021-025, 2021-042, 2021-043, 2021-056,2021-068, and 2021-078) disclosed on Cninfo.
6. Our subsidiaries' participation in investment in equity investment funds and the progress
With a view to promoting the Company’s long-term development and ensuring positive interactions between industrial andcapital operations, Shenzhen Shunfeng Investment Co., Ltd. (hereinafter referred to as “Shunfeng Investment”), the Company’swholly-owned subsidiary, entered into the Limited Partnership Agreement on Jinfeng Borun (Xiamen) Equity Investment Partnership(Limited Partnership) on September 22, 2020. The fund mainly invests in supply chain, logistics and consumption upgrade-relatedbusinesses. Shunfeng Investment plans to subscribe to the shares of the investment fund as a limited partnership for RMB500 million.On March 25, 2021, the Company received a notice from the fund manager that the investment fund has completed a new round offundraising. After the completion of the fundraising, the scale of the investment fund will be RMB1.5 billion, and SF Investment'ssubscribed capital contribution will account for 33.33%.
In order to promote the sustainable and healthy development of the Company's logistics industrial park, better support thedevelopment of the main logistics industry's demand for site resources, promote the positive interaction between the Company'sindustrial operation and capital management, and enhance the Company's core competitiveness, on April 30, 2021, ShunJieInvestment Limited (hereinafter referred to as "Shunjie Investment"), a subsidiary of the Company, signed a cooperation agreementwith Hammer Capital Real Estate Limited (hereinafter referred to as "HCRE") and other parties. The subsidiary of the Companyplans to jointly establish a logistics development fund with HCRE to invest in logistics properties or project companies holdinglogistics properties in China's first-tier and other central cities. The fund's initial delivery subscribed capital contribution target isexpected to be US300 million. The general partnership of the fund is jointly invested by Shunjie Investment and HCRE, each ofwhich holds 50% of the shares of the GP company. At the same time, the subsidiary of the Company, being a limited partner and acarried interest partner of the Fund, will subscribe to the fund with a total planned investment of 25% of the fund size. And HCRE’saffiliated companies or affiliated persons , being limited partners and/or carried interest partners and special limited partners of theFund, will subscribe to the fund with a total planned investment of not less than 5% of the fund size.
For details, please refer to the announcements (2021-044, 2021-059) disclosed by the Company on cninfo.
A disclosure index for the above-mentioned significant events and other significant events is as below:
| Announcement | Disclosure Date | Disclosure Website |
| Announcement of Resolutions of the Eleventh Meeting of the Fifth Board of Directors (2021-013) | 2021/2/10 | www.cninfo.com.cn |
| Announcement of Resolutions of the Eleventh Meeting of the Fifth Board of Supervisors (2021-014) | 2021/2/10 | www.cninfo.com.cn |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Announcement on the proposed partial tender offer to acquire 51.8% equity of Kerry Logistics (2021-015) | 2021/2/10 | www.cninfo.com.cn |
| Announcement on the issuance of debt financing products by wholly-owned subsidiaries at home and abroad (2021-017) | 2021/2/10 | www.cninfo.com.cn |
| Announcement on planning the establishment and listing of real estate investment trust funds (2021-023) | 2021/2/10 | www.cninfo.com.cn |
| Announcement of Resolutions of the Second Extraordinary General Meeting of Shareholders in 2021 (2021-025) | 2021/3/3 | www.cninfo.com.cn |
| Announcement on the issuance results of the first phase of ultra-short-term financing bonds for 2021, a wholly-owned subsidiary of Shenzhen SF Tyson Holdings (Group) Co., Ltd. (2021-042) | 2021/3/20 | www.cninfo.com.cn |
| Announcement on the issuance results of the second phase of ultra-short-term financing bonds in 2021, the wholly-owned subsidiary Shenzhen SF Tyson Holdings (Group) Co., Ltd. (2021-043) | 2021/3/23 | www.cninfo.com.cn |
| Announcement on the progress of wholly-owned subsidiaries' participation in investment in equity investment funds (2021-044) | 2021/3/26 | www.cninfo.com.cn |
| Announcement on the acceptance of applications for non-public offering of stocks by the China Securities Regulatory Commission (2021-045) | 2021/3/27 | www.cninfo.com.cn |
| Announcement on the receipt of the "Notice of Feedback on One-time Review of Administrative License Projects of the China Securities Regulatory Commission" (2021-050) | 2021/4/12 | www.cninfo.com.cn |
| Announcement on the issuance results of the wholly-owned subsidiary Shenzhen SF Tyson Holdings (Group) Co., Ltd. for the public issuance of green corporate bonds to qualified investors in 2021 (Phase 1) (special use for carbon neutrality) (2021-056) | 2021/4/27 | www.cninfo.com.cn |
| Announcement of Resolutions of the Fourteenth Meeting of the Fifth Session of the Board of Directors (2021-057) | 2021/4/29 | www.cninfo.com.cn |
| Announcement on the establishment of real estate investment trust funds by holding subsidiaries and listing on the main board of the Hong Kong Stock Exchange (2021-058) | 2021/4/29 | www.cninfo.com.cn |
| Announcement on the participation of the Company's subsidiaries in the establishment of a logistics development fund (2021-059) | 2021/4/30 | www.cninfo.com.cn |
| Announcement of Resolutions of the Fifteenth Meeting of the Fifth Session of the Board of Directors (2021-061) | 2021/5/14 | www.cninfo.com.cn |
| Announcement of Resolutions of the Fourteenth Meeting of the Fifth Board of Supervisors (2021-062) | 2021/5/14 | www.cninfo.com.cn |
| Announcement on Adjusting the 2021 Non-public Issuance of A Shares Plan (2021-063) | 2021/5/14 | www.cninfo.com.cn |
| Announcement on the revision of the plan for non-public issuance of A shares (2021-064) | 2021/5/14 | www.cninfo.com.cn |
| Announcement on the progress of the establishment of real estate investment trust funds by holding subsidiaries and listing on the main board of the Hong Kong Stock Exchange (2021-066) | 2021/5/19 | www.cninfo.com.cn |
| Announcement on the issuance results of the public offering of short-term corporate bonds (Phase 1) by Shenzhen SF Tyson Holdings (Group) Co., Ltd., a wholly-owned subsidiary of Shenzhen SF Tyson Holdings (Group) Co., Ltd. to professional investors in 2021 (2021-068) | 2021/5/22 | www.cninfo.com.cn |
| Announcement of Resolutions of the Sixteenth Meeting of the Fifth Session of the Board of Directors (2021-070) | 2021/5/29 | www.cninfo.com.cn |
| Announcement of Resolutions of the Fifteenth Meeting of the Fifth Board of Supervisors (2021-071) | 2021/5/29 | www.cninfo.com.cn |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Announcement on the spin-off of its holding subsidiary, Tongcheng Industrial, and its listing on the main board of the Hong Kong Stock Exchange (2021-072) | 2021/5/29 | www.cninfo.com.cn |
| Announcement on the proposed partial tender offer to acquire 51.8% equity of Kerry Logistics (2021-073) | 2021/5/29 | www.cninfo.com.cn |
| Announcement on the application for non-public issuance of A shares approved by the Issuance Review Committee of the China Securities Regulatory Commission (2021-076) | 2021/6/1 | www.cninfo.com.cn |
| Announcement on the issuance results of the public offering of short-term corporate bonds (Phase 2) by Shenzhen SF Tyson Holdings (Group) Co., Ltd., a wholly-owned subsidiary, to professional investors in 2021 (2021-078) | 2021/6/5 | www.cninfo.com.cn |
| Announcement of Resolutions of the Third Extraordinary General Meeting of Shareholders in 2021 (2021-080) | 2021/6/16 | www.cninfo.com.cn |
| Announcement on the acceptance of application materials for overseas initial public issuance of shares by holding subsidiaries by the China Securities Regulatory Commission (2021-084) | 2021/6/24 | www.cninfo.com.cn |
| Announcement on the submission of an overseas initial public offering and listing application by a holding subsidiary to The Stock Exchange of Hong Kong Limited (2021-085) | 2021/7/1 | www.cninfo.com.cn |
| Announcement on progress of the proposed partial tender offer to acquire 51.8% equity of Kerry Logistics (2021-090) | 2021/8/3 | www.cninfo.com.cn |
| Announcement on progress of the proposed partial tender offer to acquire 51.8% equity of Kerry Logistics (2021-093) | 2021/8/10 | www.cninfo.com.cn |
| Announcement on progress of the proposed partial tender offer to acquire 51.8% equity of Kerry Logistics (2021-094) | 2021/8/12 | www.cninfo.com.cn |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 7 Share Changes & Shareholder Details I. Changes in Shares
Ⅰ. Issuance and Listing of Securities
1. Changes in Shares
Unit: number of shares
| Before this change | Increase or decrease of this change (＋,－) | After this change | |||||||
| Number | Percentage | Issuance of new shares | Bonus shares | Conversion of provident funds to shares | Other | Subtotal | Number | Percentage | |
| I. Restricted shares | 66,127,382 | 1.45% | - | - | - | -13,204,386 | -13,204,386 | 52,922,996 | 1.16% |
| 1. State shareholding | - | - | - | - | - | - | - | - | - |
| 2. State-owned legal person holdings | - | - | - | - | - | - | - | - | - |
| 3. Other domestic shares | 66,127,382 | 1.45% | - | - | - | -13,204,386 | -13,204,386 | 52,922,996 | 1.16% |
| Including: Domestic legal person holdings | - | - | - | - | - | - | - | - | - |
| Domestic natural person holdings | 66,127,382 | 1.45% | - | - | - | -13,204,386 | -13,204,386 | 52,922,996 | 1.16% |
| 4. Foreign holdings | - | - | - | - | - | - | - | - | - |
| Including: Foreign legal person holdings | - | - | - | - | - | - | - | - | - |
| Foreign natural person holdings | - | - | - | - | - | - | - | - | - |
| II. Unrestricted shares | 4,490,313,073 | 98.55% | - | - | - | 13,204,386 | 13,204,386 | 4,503,517,459 | 98.84% |
| 1. RMB ordinary shares | 4,490,313,073 | 98.55% | - | - | - | 13,204,386 | 13,204,386 | 4,503,517,459 | 98.84% |
| III. Total number of shares | 4,556,440,455 | 100.00% | - | - | - | - | - | 4,556,440,455 | 100.00% |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: number of shares
| Name of shareholder | Restricted shares at the beginning of the period | Number of restricted shares removed in the period | Number of restricted shares increased in the period | Restricted shares at the end of the period | Restricted sales reasons | Date of restricted sales removal |
| Liu Jilu | 65,617,221 | 13,204,386 | - | 52,412,835 | lock-up shares for senior managers | 13,204,386 lock-up shares of senior managers were unlocked at the beginning of 2021 |
| Yuan Fuxiang | 510,161 | - | - | 510,161 | restricted shares for IPO | - |
| Total | 66,127,382 | 13,204,386 | - | 52,922,996 | -- | -- |
| Total number of ordinary shareholders at the end of reporting period | 286,001 | Total number of preferred shareholders with voting rights restored (if any) at the end of reporting period | 0 | ||||||
| Ordinary shareholders holding more than 5% of shares or shares of the top 10 ordinary shareholders | |||||||||
| Name of shareholder | Type of shareholder | Shareholding percentage | Number of ordinary shares held at the end of the reporting period | Increase or decrease of shares during reporting period | Number of restricted ordinary shares held | Number of non-restricted ordinary shares held | Pledged, marked or frozen shares | ||
| Status of shares | Amount | ||||||||
| Shenzhen Mingde Holding Development Co., Ltd. | Domestic non-state-owned legal person | 59.30% | 2,701,927,139 | - | - | 2,701,927,139 | Pledged | 919,000,000 | |
| Shenzhen Zhaoguang Investment Co., Ltd. | State-owned legal person | 4.79% | 218,304,300 | -48,333,246 | - | 218,304,300 | Pledged | 68,478,354 | |
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 4.17% | 189,975,416 | 47,839,397 | - | 189,975,416 | - | - | |
| Ningbo Shunda Fengrun Venture Capital Partnership (Limited Partnership) | Domestic non-state-owned legal person | 2.45% | 111,590,807 | -26,637,697 | - | - | Pledged | 19,648,802 | |
| Liu Jilu | Domestic natural person | 1.53% | 69,883,780 | - | 52,412,835 | 17,470,945 | Pledged | 3,300,000 | |
| Suzhou Industrial Park Oriza Shunfeng Equity Investment Company (Limited | Domestic non-state-owned legal | 1.11% | 50,727,645 | -15,049,350 | - | 50,727,645 | - | - | |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Partnership) | person | ||||||||||
| Norges Bank – Own Funds | Overseas legal person | 0.62% | 28,060,869 | 6,604,721 | - | 28,060,869 | - | - | |||
| CAISSE DE D?P?T ET PLACEMENT DU QU?BEC | Other | 0.47% | 21,433,047 | 8,686,870 | - | 21,433,047 | - | - | |||
| China CITIC Bank Co., Ltd.-BOCOM Schroder New Vitality Flexible Allocation of Mixed Securities Investment Fund | Other | 0.32% | 14,602,198 | -2,875,261 | - | 14,602,198 | - | - | |||
| China Resources Shenguotou Trust Co., Ltd. – China Resources Trusts?Springs Balance No. 5 Collective Fund Trust Plan | Other | 0.30% | 13,777,262 | 10,792,745 | - | 13,777,262 | - | - | |||
| Strategic investor or general legal person becomes the top 10 ordinary shareholder due to the placement of new shares（if any） | N/A | ||||||||||
| Explain any associated relationship and/or persons acting in concert between the above-mentioned shareholders | The Company is not aware of whether there is an associated relationship between the above mentioned shareholders and whether they are acting in concert. | ||||||||||
| Explain entrusting/being entrusted voting rights or waiving voting rights of the above-mentioned shareholders | N/A | ||||||||||
| Explain DPM repurchase for the top 10 shareholders (if any) | N/A | ||||||||||
| Top 10 ordinary shareholders holding unrestricted shares | |||||||||||
| Name of shareholder | Number of unrestricted ordinary shares held at the end of the reporting period | Type of shares | |||||||||
| Type of shares | Quantity | ||||||||||
| Shenzhen Mingde Holding Development Co., Ltd. | 2,701,927,139 | RMB-denominated ordinary shares | 2,701,927,139 | ||||||||
| Shenzhen Zhaoguang Investment Co., Ltd. | 218,304,300 | RMB-denominated ordinary shares | 218,304,300 | ||||||||
| Hong Kong Securities Clearing Company Ltd. | 189,975,416 | RMB-denominated ordinary shares | 189,975,416 | ||||||||
| Ningbo Shunda Fengrun Venture Capital Partnership (Limited Partnership) | 111,590,807 | RMB-denominated ordinary shares | 111,590,807 | ||||||||
| Suzhou Industrial Park Oriza Shunfeng Equity Investment Company (Limited Partnership) | 50,727,645 | RMB-denominated ordinary shares | 50,727,645 | ||||||||
| Norges Bank–Own Funds | 28,060,869 | RMB-denominated ordinary shares | 28,060,869 | ||||||||
| CAISSE DE D?P?T ET PLACEMENT DU QU?BEC | 21,433,047 | RMB-denominated ordinary shares | 21,433,047 | ||||||||
| Liu Jilu | 17,470,945 | RMB-denominated ordinary shares | 17,470,945 | ||||||||
| China CITIC Bank Co., Ltd.-BOCOM Schroder New Vitality Flexible Allocation of Mixed Securities Investment Fund | 14,602,198 | RMB-denominated ordinary shares | 14,602,198 | ||||||||
| China Resources Shenguotou Trust Co., Ltd. – China Resources Trusts?Springs Balance No. 5 Collective Fund Trust Plan | 13,777,262 | RMB-denominated ordinary shares | 13,777,262 | ||||||||
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
| Explain any associated relationship or persons acting in concert between the top 10 non-restricted ordinary shareholders and between the top 10 non-restricted ordinary shareholders and the top 10 ordinary shareholders | The Company is not aware of whether there is an associated relationship between the above-mentioned shareholders and whether they are acting in concert. |
| Explain the top 10 ordinary shareholders’ participation in margin financing (if any) | N/A |
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 8 Preferred Shares
□ Applicable √ Not applicable
No such cases in the reporting period.
S.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 9 Bonds
□ Applicable √ Not applicable
.F. Holding Co., Ltd. 2021 Semi-Annual Report
Chapter 10 Financial Statements
| [English Translation for Reference Only] Review Report | ||
| PwC ZT Yue Zi (2021) No. 0029 | ||
| To the shareholders of S.F. Holding Co., Ltd., | ||
| We have reviewed the accompanying interim financial statements of S.F. Holding Co., Ltd. (hereinafter “S.F. Holding”), which comprise the consolidated and company balance sheets as at 30 June 2021, the consolidated and company income statements, the consolidated and company statements of changes in equity and the consolidated and company cash flow statements for the six-month period then ended, and the notes to the interim financial statements. Management of S.F. Holding is responsible for the preparation of these interim financial statements in accordance with the requirements of the Accounting Standards for Business Enterprises. Our responsibility is to issue a review report on these interim financial statements based on our review. | ||
| We conducted our review in accordance with China Standards on Review Engagement No. 2101, “Review of Financial Statements”. These standards require that we plan and perform the review to obtain limited assurance as to whether the interim financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. | ||
| Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared in accordance with the Accounting Standards for Business Enterprises or do not present fairly, in all material respects, the consolidated and company’s financial position of S.F. Holding as at 30 June 2021, and their financial performance and cash flows for the period then ended. | ||
| PricewaterhouseCoopers Zhong Tian LLP Shanghai, the People’s Republic of China 20 August 2021 | Signing CPA Signing CPA | ————————————— Chen Anqiang (Engagement Partner) ———————— Liu Jingping |
CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| ASSETS | Note | 30 June 2021 | 31 December 2020 | |
| Consolidated | Consolidated | |||
| Current assets | ||||
| Cash at bank and on hand | 4(1) | 16,862,359,321.83 | 16,417,891,707.19 | |
| Financial assets held for trading | 4(2) | 10,024,418,773.30 | 6,276,922,669.69 | |
| Notes receivable | 159,414,841.49 | 166,476,628.34 | ||
| Accounts receivable | 4(3) | 18,603,262,202.89 | 16,849,064,250.79 | |
| Advances to suppliers | 4(4) | 2,310,290,874.56 | 3,176,518,926.99 | |
| Factoring receivables | 4(5) | 141,731.44 | 309,932.28 | |
| Loans and advances | 4(6) | 37,862,307.56 | 60,917,899.18 | |
| Other receivables | 4(7) | 2,621,280,338.67 | 2,493,564,401.11 | |
| Inventories | 4(8) | 981,610,149.77 | 986,950,595.04 | |
| Contract assets | 4(9) | 375,776,993.91 | 399,035,179.94 | |
| Current portion of non-current assets | 4(11) | 253,525,731.69 | 156,240,777.09 | |
| Other current assets | 4(10) | 5,861,061,750.50 | 4,693,077,389.66 | |
| Total current assets | 58,091,005,017.61 | 51,676,970,357.30 | ||
| Non-current assets | ||||
| Long-term receivables | 4(11) | 711,149,218.75 | 607,103,640.21 | |
| Long-term equity investments | 4(12) | 5,075,968,100.17 | 3,647,231,277.90 | |
| Investments in other equity instruments | 4(13) | 4,455,155,248.78 | 5,027,489,054.30 | |
| Other non-current financial assets | 4(14) | 846,820,269.97 | 831,526,041.08 | |
| Investment properties | 4(15) | 1,430,515,368.05 | 2,219,404,821.35 | |
| Fixed assets | 4(16) | 22,740,388,614.84 | 22,356,651,754.60 | |
| Construction in progress | 4(17) | 6,521,949,882.48 | 5,379,854,462.06 | |
| Right-of-use assets | 4(18) | 13,374,738,542.41 | -- | |
| Intangible assets | 4(19) | 9,896,036,364.07 | 10,633,114,090.26 | |
| Capitalised development expenditures | 4(20) | 585,909,976.65 | 540,903,450.14 | |
| Goodwill | 4(21) | 3,359,112,287.60 | 3,377,141,391.71 | |
| Long-term prepaid expenses | 4(22) | 1,956,684,942.83 | 1,860,736,934.89 | |
| Deferred tax assets | 4(40) | 1,776,170,609.17 | 1,539,267,775.98 | |
| Other non-current assets | 4(23) | 2,571,453,726.19 | 1,462,647,209.19 | |
| Total non-current assets | 75,302,053,151.96 | 59,483,071,903.67 | ||
| TOTAL ASSETS | 133,393,058,169.57 | 111,160,042,260.97 |
CONSOLIDATED BALANCE SHEET (CONT’D)AS AT 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| LIABILITIES AND EQUITY | Note | 30 June 2021 | 31 December 2020 | |
| Consolidated | Consolidated | |||
| Current liabilities | ||||
| Short-term borrowings | 4(25) | 15,018,583,357.05 | 7,996,570,312.73 | |
| Deposits from customers | 2,925,182.37 | 3,654,785.86 | ||
| Financial liabilities held for trading | 23,703,392.07 | 22,155,013.53 | ||
| Accounts payable | 4(26) | 15,896,242,092.03 | 15,484,940,351.95 | |
| Advances from customers | 4(27) | 24,032,178.00 | 27,575,669.47 | |
| Contract liabilities | 4(28) | 1,816,741,934.15 | 1,539,264,096.14 | |
| Employee benefits payable | 4(29) | 3,259,281,586.74 | 4,310,829,146.80 | |
| Taxes payable | 4(30) | 1,375,056,805.45 | 1,855,263,509.24 | |
| Other payables | 4(31) | 7,581,186,251.15 | 7,530,793,784.24 | |
| Current portion of non-current liabilities | 4(32) | 7,727,706,661.82 | 2,945,350,894.28 | |
| Other current liabilities | 4(33) | 2,138,161,857.86 | 92,355,845.77 | |
| Total current liabilities | 54,863,621,298.69 | 41,808,753,410.01 | ||
| Non-current liabilities | ||||
| Long-term borrowings | 4(34) | 1,758,386,807.78 | 1,865,820,266.05 | |
| Debentures payable | 4(35) | 8,860,323,061.45 | 8,425,430,468.77 | |
| Lease liabilities | 4(36) | 8,140,284,965.55 | -- | |
| Long-term payables | 4(37) | - | 10,201,626.90 | |
| Long-term employee benefits payable | 4(38) | 191,906,251.48 | 145,540,226.93 | |
| Deferred income | 4(39) | 594,877,637.91 | 414,736,204.81 | |
| Deferred tax liabilities | 4(40) | 1,638,070,232.93 | 1,687,605,941.56 | |
| Provisions | 39,799,250.63 | 42,253,056.91 | ||
| Total non-current liabilities | 21,223,648,207.73 | 12,591,587,791.93 | ||
| Total liabilities | 76,087,269,506.42 | 54,400,341,201.94 | ||
| Equity | ||||
| Share capital | 4(41) | 4,556,440,455.00 | 4,556,440,455.00 | |
| Capital reserve | 4(42) | 25,549,775,675.75 | 24,405,217,286.50 | |
| Less: Treasury stock | 4(43) | (394,992,892.71) | (394,992,892.71) | |
| Other comprehensive income | 4(64) | 864,517,815.45 | 1,143,969,091.52 | |
| General risk reserve | 283,083,184.04 | 279,142,491.29 | ||
| Surplus reserve | 4(45) | 745,043,348.45 | 745,043,348.45 | |
| Retained earnings | 4(46) | 25,077,355,183.06 | 25,708,230,458.34 | |
| Total equity attributable to shareholders of the Company | 56,681,222,769.04 | 56,443,050,238.39 | ||
| Minority interests | 4(47) | 624,565,894.11 | 316,650,820.64 | |
| Total equity | 57,305,788,663.15 | 56,759,701,059.03 | ||
| TOTAL LIABILITIES AND EQUITY | 133,393,058,169.57 | 111,160,042,260.97 |
COMPANY BALANCE SHEETAS AT 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| ASSETS | Note | 30 June 2021 | 31 December 2020 | |
| Company | Company | |||
| Current assets | ||||
| Cash at bank and on hand | 17(1) | 56,435,522.39 | 58,098,498.15 | |
| Financial assets held for trading | 250,782,638.89 | 200,376,712.32 | ||
| Advances to suppliers | 539,201.13 | 991,345.81 | ||
| Other receivables | 17(2) | 5,460,904,966.22 | 6,960,858,841.98 | |
| Other current assets | 292,522.37 | 70,727.68 | ||
| Total current assets | 5,768,954,851.00 | 7,220,396,125.94 | ||
| Non-current assets | ||||
| Long-term receivables | 17(3) | - | 82,496,567.74 | |
| Long-term equity investments | 17(4) | 50,997,087,817.91 | 50,997,093,513.91 | |
| Construction in progress | 4,953,207.54 | - | ||
| Right-of-use assets | 2,332,731.69 | -- | ||
| Intangible assets | 389,268,293.21 | 396,121,670.15 | ||
| Long-term prepaid expenses | 883,479.39 | 27,611.60 | ||
| Other non-current assets | 1,319,002.89 | - | ||
| Total non-current assets | 51,395,844,532.63 | 51,475,739,363.40 | ||
| TOTAL ASSETS | 57,164,799,383.63 | 58,696,135,489.34 | ||
COMPANY BALANCE SHEET (CONT’D)AS AT 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| LIABILITIES AND EQUITY | Note | 30 June 2021 | 31 December 2020 | |
| Company | Company | |||
| Current liabilities | ||||
| Employee benefits payable | 226,666.65 | 226,666.65 | ||
| Other payables | 6,872,534.23 | 15,926,205.73 | ||
| Taxes payable | 41,580.00 | 21,397,863.68 | ||
| Total current liabilities | 7,140,780.88 | 37,550,736.06 | ||
| Non-current liabilities | ||||
| Deferred tax liabilities | - | 94,178.08 | ||
| Lease liabilities | 2,415,173.65 | -- | ||
| Total non-current liabilities | 2,415,173.65 | 94,178.08 | ||
| Total liabilities | 9,555,954.53 | 37,644,914.14 | ||
| Equity | ||||
| Share capital | 4,556,440,455.00 | 4,556,440,455.00 | ||
| Capital reserve | 52,344,314,626.55 | 52,344,320,322.55 | ||
| Less: Treasury stock | (394,992,892.71) | (394,992,892.71) | ||
| Surplus reserve | 591,998,348.14 | 591,998,348.14 | ||
| Retained earnings | 57,482,892.12 | 1,560,724,342.22 | ||
| Total equity | 57,155,243,429.10 | 58,658,490,575.20 | ||
| TOTAL LIABILITIES AND EQUITY | 57,164,799,383.63 | 58,696,135,489.34 |
CONSOLIDATED AND COMPANY INCOME STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| For the six months ended 30 June | ||||||||
| Item | Note | 2021 | 2020 | 2021 | 2020 | |||
| Consolidated | Consolidated | Company | Company | |||||
| 1. Revenue | 4(48) | 88,343,929,823.78 | 71,129,007,738.21 | - | - | |||
| Less: Cost of revenue | 4(48) | (79,421,353,588.40) | (57,863,128,901.41) | - | - | |||
| Taxes and surcharges | 4(49) | (210,648,900.18) | (181,851,687.80) | (2,138.00) | (152,793.39) | |||
| Selling and distribution expenses | 4(50) | (1,310,233,654.15) | (1,056,658,701.93) | - | - | |||
| General and administrative expenses | 4(51) | (6,529,046,289.13) | (5,861,443,162.73) | (11,066,575.34) | (3,945,277.40) | |||
| Research and development expenses | 4(52) | (1,007,216,703.68) | (733,339,628.41) | (20,525.40) | (10,764.93) | |||
| Financial (costs)/income | 4(53) | (621,902,222.77) | (472,967,469.92) | 876,184.52 | (92,238,167.70) | |||
| Including: Interest expenses | (666,601,847.87) | (568,057,438.29) | (50,551.62) | (100,954,908.22) | ||||
| Interest income | 93,386,299.49 | 78,055,138.82 | 932,196.09 | 8,727,879.35 | ||||
| Add : Other income | 4(55) | 716,561,124.08 | 645,710,052.98 | - | 24,401.99 | |||
| Investment income | 4(56) 17(5) | 1,130,498,743.99 | 223,418,158.46 | 2,664,607.92 | 44,903,960.29 | |||
| Including: Investment losses from associates and joint ventures | (8,751,248.27) | (18,447,519.77) | - | - | ||||
| Gains arising from changes in fair value | 4(57) | 29,589,246.28 | 16,413,953.16 | 405,926.57 | 1,716,972.58 | |||
| Credit impairment losses | 4(58) | (11,176,161.04) | (459,541,101.91) | (231.78) | - | |||
| Asset impairment losses | 4(59) | (592,019.83) | (27,469,084.52) | - | - | |||
| Losses on disposal of assets | 4(60) | (14,187,714.91) | (9,646,491.49) | - | - | |||
| 2. Operating profit/(loss) | 1,094,221,684.04 | 5,348,503,672.69 | (7,142,751.51) | (49,701,668.56) | ||||
| Add: Non-operating income | 4(61)(a) | 125,023,072.59 | 89,733,785.62 | - | 4,725,851.13 | |||
| Less: Non-operating expenses | 4(61)(b) | (126,095,725.78) | (99,473,652.09) | - | - | |||
| 3. Total profit/(loss) | 1,093,149,030.85 | 5,338,763,806.22 | (7,142,751.51) | (44,975,817.43) | ||||
| Less: Income tax (expenses)/credits | 4(62) | (677,358,703.20) | (1,714,998,647.00) | 3,893,110.99 | 1,723,041.10 | |||
| 4. Net profit/(loss) | 415,790,327.65 | 3,623,765,159.22 | (3,249,640.52) | (43,252,776.33) | ||||
| Classified by continuity of operations: | ||||||||
| Net profit/(loss) from continuing operations | 415,790,327.65 | 3,623,765,159.22 | (3,249,640.52) | (43,252,776.33) | ||||
| Net profit from discontinued operations | - | - | - | - | ||||
| Classified by ownership of the equity: | ||||||||
| Attributable to shareholders of the Company | 759,921,074.24 | 3,761,593,296.43 | Not applicable | Not applicable | ||||
| Minority interests | (344,130,746.59) | (137,828,137.21) | Not applicable | Not applicable | ||||
CONSOLIDATED AND COMPANY INCOME STATEMENTS (CONT’D)FOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| For the six months ended 30 June | ||||||||
| Item | Note | 2021 | 2020 | 2021 | 2020 | |||
| Consolidated | Consolidated | Company | Company | |||||
| 5. Other comprehensive income, net of tax | (167,117,849.66) | 146,353,697.64 | - | - | ||||
| Attributable to shareholders of the Company, net of tax | (166,315,123.26) | 146,482,499.71 | - | - | ||||
| Other comprehensive income items which will not be reclassified subsequently to profit or loss | (76,892,005.25) | 41,738,101.54 | - | - | ||||
| Changes in fair value of other equity instruments investment | 4(64) | (76,803,722.97) | 40,865,087.90 | - | - | |||
| Other comprehensive income items which will not be transferred to profit or loss under the equity method | 4(64) | (88,282.28) | 873,013.64 | - | - | |||
| Other comprehensive income items which will be reclassified subsequently to profit or loss | (89,423,118.01) | 104,744,398.17 | - | - | ||||
| Cash flow hedging reserve | (5,527,991.60) | - | - | - | ||||
| Exchange differences on translation of foreign currency financial statements | 4(64) | (83,895,126.41) | 104,744,398.17 | - | - | |||
| Attributable to minority interests, net of tax | 4(64) | (802,726.40) | (128,802.07) | - | - | |||
| 6. Total comprehensive income | 248,672,477.99 | 3,770,118,856.86 | (3,249,640.52) | (43,252,776.33) | ||||
| Attributable to shareholders of the Company | 593,605,950.98 | 3,908,075,796.14 | Not applicable | Not applicable | ||||
| Attributable to minority interests | (344,933,472.99) | (137,956,939.28) | Not applicable | Not applicable | ||||
| 7. Earnings per share | ||||||||
| Basic earnings per share (RMB Yuan) | 4(63) | 0.17 | 0.85 | Not applicable | Not applicable | |||
| Diluted earnings per share (RMB Yuan) | 4(63) | 0.17 | 0.85 | Not applicable | Not applicable | |||
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| For the six months ended 30 June | ||||||||
| Item | Note | 2021 | 2020 | 2021 | 2020 | |||
| Consolidated | Consolidated | Company | Company | |||||
| 1. Cash flows from operating activities | ||||||||
| Cash received from sales of goods or rendering of services | 90,333,953,289.62 | 72,947,979,643.63 | - | - | ||||
| Net decrease in loans to customers | 30,155,476.57 | - | - | - | ||||
| Net decrease in balances with central bank | 347,210,432.62 | - | - | - | ||||
| Net decrease in placements with and loans to banks and other financial institutions | - | 200,000,000.00 | - | - | ||||
| Net increase in deposits from customers | 845,475.00 | 1,379,123.94 | - | - | ||||
| Refund of taxes and levies | 73,786,234.28 | 72,251,370.53 | - | - | ||||
| Cash received relating to other operating activities | 4(65)(a) | 44,986,705,898.36 | 36,120,935,884.94 | 1,370,901.95 | 16,784,720.65 | |||
| Sub-total of operating cash inflows | 135,772,656,806.45 | 109,342,546,023.04 | 1,370,901.95 | 16,784,720.65 | ||||
| Cash paid for goods and services | (66,970,611,765.37) | (46,139,569,576.39) | - | - | ||||
| Net increase in loans to customers | - | (50,761,631.37) | - | - | ||||
| Net increase in balances with central bank | - | (9,705,168.79) | - | - | ||||
| Cash paid to and on behalf of employees | (14,840,279,837.39) | (12,231,862,172.78) | (1,361,999.08) | (1,060,000.00) | ||||
| Payments of taxes and levies | (2,721,791,350.68) | (2,492,140,114.50) | (15,996,401.37) | (1,303,436.03) | ||||
| Cash paid relating to other operating activities | 4(65)(b) | (46,908,341,009.85) | (41,486,795,039.11) | (6,316,624.44) | (4,859,502.53) | |||
| Sub-total of operating cash outflows | (131,441,023,963.29) | (102,410,833,702.94) | (23,675,024.89) | (7,222,938.56) | ||||
| Net cash flows from operating activities | 4(66)(a) | 4,331,632,843.16 | 6,931,712,320.10 | (22,304,122.94) | 9,561,782.09 | |||
| 2. Cash flows used in investing activities | ||||||||
| Cash received from disposal of investments | 934,434,794.34 | 14,054,523.72 | - | - | ||||
| Cash received from returns on investments | 182,466,161.37 | 239,369,492.41 | 1,502,824,484.40 | 1,166,683,179.88 | ||||
| Cash received from disposal of fixed assets and other long-term assets | 85,924,854.13 | 21,609,036.69 | - | - | ||||
| Net cash received from disposal of subsidiaries and other business units | 4(65)(c) | 1,414,075,843.20 | 30,000,000.00 | - | - | |||
| Cash received relating to other investing activities | 4(65)(e) | 46,455,050,489.87 | 52,830,000,000.00 | 1,162,496,567.74 | 9,802,734,180.72 | |||
| Sub-total of investing cash inflows | 49,071,952,142.91 | 53,135,033,052.82 | 2,665,321,052.14 | 10,969,417,360.60 | ||||
| Cash paid to acquire fixed assets and other long-term assets | (9,188,443,054.47) | (3,973,822,904.91) | (13,841,151.75) | (76,698.78) | ||||
| Cash paid to acquire investments | (391,136,879.92) | (99,952,404.12) | - | - | ||||
| Net cash paid to acquire subsidiaries | 4(65)(d) | (199,541,711.07) | - | - | - | |||
| Cash paid relating to other investing activities | 4(65)(f) | (50,185,229,111.50) | (66,931,335,372.60) | (1,130,000,000.00) | (10,554,370,000.00) | |||
| Sub-total of investing cash outflows | (59,964,350,756.96) | (71,005,110,681.63) | (1,143,841,151.75) | (10,554,446,698.78) | ||||
| Net cash flows (used in)/from investing activities | (10,892,398,614.05) | (17,870,077,628.81) | 1,521,479,900.39 | 414,970,661.82 | ||||
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS (CONT'D)FOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| For the six months ended 30 June | ||||||||
| Item | Note | 2021 | 2020 | 2021 | 2020 | |||
| Consolidated | Consolidated | Company | Company | |||||
| 3. Cash flows from financing activities | ||||||||
| Cash received from capital contributions | 1,725,968,997.55 | 628,689,248.52 | - | - | ||||
| Including: Cash received from capital contributions by minority interests of subsidiaries | 1,725,968,997.55 | 628,689,248.52 | - | - | ||||
| Cash received from borrowings and issue of debentures | 14,320,423,964.61 | 13,587,708,869.12 | - | - | ||||
| Sub-total of financing cash inflows | 16,046,392,962.16 | 14,216,398,117.64 | - | - | ||||
| Cash repayments of borrowings | (4,322,819,732.70) | (10,113,537,717.41) | - | (200,000.00) | ||||
| Cash payments for interest expenses and distribution of dividends or profits | (1,846,032,070.72) | (1,473,795,893.91) | (1,499,991,809.58) | (1,190,371,675.27) | ||||
| Cash payments relating to other financing activities | 4(65)(g) | (2,552,846,403.17) | (83,345,117.41) | (847,407.69) | (59,418,005.17) | |||
| Sub-total of financing cash outflows | (8,721,698,206.59) | (11,670,678,728.73) | (1,500,839,217.27) | (1,249,989,680.44) | ||||
| Net cash flows from/(used in) financing activities | 7,324,694,755.57 | 2,545,719,388.91 | (1,500,839,217.27) | (1,249,989,680.44) | ||||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 13,247,888.65 | 18,922,139.93 | 464.06 | 86.68 | ||||
| 5. Net increase/(decrease) in cash and cash equivalents | 4(66)(b) | 777,176,873.33 | (8,373,723,779.87) | (1,662,975.76) | (825,457,149.85) | |||
| Add: Cash and cash equivalents at the beginning of the period | 4(66)(b) | 15,466,483,805.74 | 17,764,448,498.26 | 58,098,498.15 | 966,640,292.56 | |||
| 6. Cash and cash equivalents at the end of the period | 4(66)(c) | 16,243,660,679.07 | 9,390,724,718.39 | 56,435,522.39 | 141,183,142.71 | |||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| Equity attributable to shareholders of the parent company | ||||||||||||||||||||||
| Note | Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | General risk reserve | Special reserve | Surplus reserve | Retained earnings | Minority interests | Total equity | |||||||||||
| Balance at 1 January 2020 | 4,414,585,265.00 | 768,938,484.90 | 16,124,018,594.16 | (454,761,306.79) | 1,002,715,607.38 | 225,783,247.34 | - | 601,241,237.54 | 19,769,413,015.66 | 73,897,241.58 | 42,525,831,386.77 | |||||||||||
| Movements for the six months ended 30 June 2020 | ||||||||||||||||||||||
| Total comprehensive income | ||||||||||||||||||||||
| Net profit | - | - | - | - | - | - | - | - | 3,761,593,296.43 | (137,828,137.21) | 3,623,765,159.22 | |||||||||||
| Other comprehensive income | - | - | - | - | 146,482,499.71 | - | - | - | - | (128,802.07) | 146,353,697.64 | |||||||||||
| Total comprehensive income for the period | - | - | - | - | 146,482,499.71 | - | - | - | 3,761,593,296.43 | (137,956,939.28) | 3,770,118,856.86 | |||||||||||
| Capital contribution and withdrawal by shareholders | ||||||||||||||||||||||
| Capital contribution by shareholders | - | - | 461,825,148.38 | - | - | - | - | - | - | 166,864,100.14 | 628,689,248.52 | |||||||||||
| Transfer of convertible corporate debentures to share capital and capital reserve | 36,244,799.00 | (192,913,580.65) | 1,443,407,004.09 | - | - | - | - | - | - | - | 1,286,738,222.44 | |||||||||||
| Other equity instruments issued by subsidiaries | - | - | - | - | - | - | - | - | - | 59,516,921.23 | 59,516,921.23 | |||||||||||
| Changes in share-based payment restricted shares | 4(43) | (2,456,568.00) | - | (57,311,814.73) | 59,768,382.73 | - | - | - | - | - | - | - | ||||||||||
| Share-based payments included in equity | 9(1) | - | - | 47,180,411.55 | - | - | - | - | - | - | 7,072,954.99 | 54,253,366.54 | ||||||||||
| Others | - | - | (118,279,760.81) | - | - | - | - | - | - | 109,085,601.49 | (9,194,159.32) | |||||||||||
| Profit distribution | ||||||||||||||||||||||
| Appropriation to general risk reserve | 4(46) | - | - | - | - | - | 2,344,717.97 | - | - | (2,344,717.97) | - | - | ||||||||||
| Distribution to shareholders | 4(46) | - | - | - | - | - | - | - | - | (1,188,301,851.36) | - | (1,188,301,851.36) | ||||||||||
| Other movements in capital reserve | - | - | 5,209,476.53 | - | - | - | - | - | - | - | 5,209,476.53 | |||||||||||
| Safety reserve | ||||||||||||||||||||||
| Appropriation | 4(44) | - | - | - | - | - | - | 12,187,435.48 | - | - | - | 12,187,435.48 | ||||||||||
| Utilisation | 4(44) | - | - | - | - | - | - | (12,187,435.48) | - | - | - | (12,187,435.48) | ||||||||||
| Balance at 30 June 2020 | 4,448,373,496.00 | 576,024,904.25 | 17,906,049,059.17 | (394,992,924.06) | 1,149,198,107.09 | 228,127,965.31 | - | 601,241,237.54 | 22,340,359,742.76 | 278,479,880.15 | 47,132,861,468.21 | |||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT’D)FOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| Equity attributable to shareholders of the parent company | ||||||||||||||||||||
| Note | Share capital | Capital reserve | Less: Treasury stock | Other comprehensive income | General risk reserve | Special reserve | Surplus reserve | Retained earnings | Minority interests | Total equity | ||||||||||
| Balance at 1 January 2021 | 4,556,440,455.00 | 24,405,217,286.50 | (394,992,892.71) | 1,143,969,091.52 | 279,142,491.29 | - | 745,043,348.45 | 25,708,230,458.34 | 316,650,820.64 | 56,759,701,059.03 | ||||||||||
| Movements for the six months ended 30 June 2021 | ||||||||||||||||||||
| Total comprehensive income | ||||||||||||||||||||
| Net profit | - | - | - | - | - | - | - | 759,921,074.24 | (344,130,746.59) | 415,790,327.65 | ||||||||||
| Other comprehensive income | - | - | - | (166,315,123.26) | - | - | - | - | (802,726.40) | (167,117,849.66) | ||||||||||
| Total comprehensive income for the period | - | - | - | (166,315,123.26) | - | - | - | 759,921,074.24 | (344,933,472.99) | 248,672,477.99 | ||||||||||
| Capital contribution and withdrawal by shareholders | ||||||||||||||||||||
| Capital contribution by shareholders | - | 1,098,398,176.77 | - | - | - | - | - | - | 632,873,657.25 | 1,731,271,834.02 | ||||||||||
| Share-based payments included in equity | 9(1) | - | 104,555,342.61 | - | - | - | - | - | - | 17,805,267.97 | 122,360,610.58 | |||||||||
| Others | - | (52,539,410.09) | - | - | - | - | - | - | 2,169,621.24 | (50,369,788.85) | ||||||||||
| Profit distribution | ||||||||||||||||||||
| Appropriation to general risk reserve | 4(46) | - | - | - | - | 3,940,692.75 | - | - | (3,940,692.75) | - | - | |||||||||
| Distribution to shareholders | 4(46) | - | - | - | - | - | - | - | (1,499,991,809.58) | - | (1,499,991,809.58) | |||||||||
| Transfer within equity | ||||||||||||||||||||
| Transfer from other comprehensive income to retained earnings | - | - | - | (113,136,152.81) | - | - | - | 113,136,152.81 | - | - | ||||||||||
| Other movements in capital reserve | - | (5,855,720.04) | - | - | - | - | - | - | - | (5,855,720.04) | ||||||||||
| Safety reserve | ||||||||||||||||||||
| Appropriation | 4(44) | - | - | - | - | - | 12,520,064.22 | - | - | - | 12,520,064.22 | |||||||||
| Utilisation | 4(44) | - | - | - | - | - | (12,520,064.22) | - | - | - | (12,520,064.22) | |||||||||
| Balance at 30 June 2021 | 4,556,440,455.00 | 25,549,775,675.75 | (394,992,892.71) | 864,517,815.45 | 283,083,184.04 | - | 745,043,348.45 | 25,077,355,183.06 | 624,565,894.11 | 57,305,788,663.15 | ||||||||||
COMPANY STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| Note | Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Surplus reserve | Retained earnings | Total equity | |||||||
| Balance at 1 January 2020 | 4,414,585,265.00 | 768,938,484.90 | 46,642,944,149.90 | (454,761,306.79) | 448,196,237.23 | 1,454,807,195.40 | 53,274,710,025.64 | |||||||
| Movements for the six months ended 30 June 2020 | ||||||||||||||
| Total comprehensive income | ||||||||||||||
| Net loss | - | - | - | - | - | (43,252,776.33) | (43,252,776.33) | |||||||
| Capital contribution and withdrawal by shareholders | ||||||||||||||
| Capital contribution by holders of convertible corporate debentures | 36,244,799.00 | (192,913,580.65) | 1,443,407,004.09 | - | - | - | 1,286,738,222.44 | |||||||
| Changes in share-based payment restricted shares | 4(43) | (2,456,568.00) | - | (57,311,814.73) | 59,768,382.73 | - | - | - | ||||||
| Profit distribution | ||||||||||||||
| Distribution to shareholders | 4(46) | - | - | - | - | - | (1,188,301,851.36) | (1,188,301,851.36) | ||||||
| Balance at 30 June 2020 | 4,448,373,496.00 | 576,024,904.25 | 48,029,039,339.26 | (394,992,924.06) | 448,196,237.23 | 223,252,567.71 | 53,329,893,620.39 |
| Balance at 1 January 2021 | 4,556,440,455.00 | - | 52,344,320,322.55 | (394,992,892.71) | 591,998,348.14 | 1,560,724,342.22 | 58,658,490,575.20 | |||||||
| Movements for the six months ended 30 June 2021 | ||||||||||||||
| Total comprehensive income | ||||||||||||||
| Net loss | - | - | - | - | - | (3,249,640.52) | (3,249,640.52) | |||||||
| Profit distribution | ||||||||||||||
| Distribution to shareholders | 4(46) | - | - | - | - | - | (1,499,991,809.58) | (1,499,991,809.58) | ||||||
| Others | - | - | (5,696.00) | - | - | - | (5,696.00) | |||||||
| Balance at 30 June 2021 | 4,556,440,455.00 | - | 52,344,314,626.55 | (394,992,892.71) | 591,998,348.14 | 57,482,892.12 | 57,155,243,429.10 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
1 General information and historical development
S.F. Holding Co., Ltd. (formerly “Ma’anshan Dingtai Rare Earth and New Materials Co., Ltd.”,hereinafter “S.F. Holding” or “the Company”), formerly known as Ma’anshan Dingtai Science &Technology Co., Ltd., was established by 11 natural persons including Liu Jilu and the Labour Unionof Ma’anshan Dingtai Metallic Products Co., Ltd. by cash contribution on 13 May 2003. Initiated bythe original shareholders of the Company, the Company was formally changed as Ma’anshanDingtai Rare Earth and New Materials Co., Ltd. with a registered capital of RMB 50 million asapproved by the shareholders’ meeting on 18 October 2007 and the inaugural meeting on 22October 2007.
On 11 January 2010, the Company successfully issued 19,500,000 ordinary shares at par value ofRMB 1.00 per share at Shenzhen Stock Exchange under the Regulatory Permission [2010] No. 41as approved by the China Securities Regulatory Commission. The outstanding shares were listedfor trading at Shenzhen Stock Exchange on 5 February 2010. After the shares were issued, the totalshare capital of the Company was changed to 77,830,780 shares.
Pursuant to the Proposal on the Profit Distribution Plan for 2014 approved by the 2014 annualshareholders’ meeting held by the Company on 19 May 2015, the Company converted capitalreserve into new shares on the basis of 5 shares for every 10 existing shares, with 77,830,780shares in total at the end of 2014 as base. After the conversion, the total share capital of theCompany was increased by 38,915,390 shares to 116,746,170 shares.
Pursuant to the Proposal on the Profit Distribution Plan for 2015 approved by the 2015 annualshareholders’ meeting held by the Company on 17 May 2016, the Company, with 116,746,170shares in total at the end of 2015 as base, converted capital reserve into new shares on the basis of10 shares for every 10 existing shares. After the conversion, the total share capital of the Companywas increased by 116,746,170 shares to 233,492,340 shares.
Pursuant to the resolution of the 13th session of the 3rd Board of Directors of the Company dated 22May 2016 and relevant resolutions approved on the first interim shareholders’ meeting in 2016 heldby the Company on 30 June 2016, including the Resolution Concerning the Company Qualifying forCriteria for Major Assets Restructuring of Listed Companies, the Resolution on Related-partyTransaction Composed of Major Assets Swap and Issuing Shares to Purchase Assets and RaiseMatching Fund and the Resolution on ‘Major Assets Swap and Issuing Shares to Purchase Assetsand Raise Matching Fund and Related-party Transaction Report (Draft) of Ma’anshan Dingtai RareEarth and New Materials Co., Ltd.’ and Summaries, the Company conducted a series of majorassets restructuring as follows:
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
1 General information and historical development (Cont’d)
(1) Major assets swap
In December 2016, the Company swapped all the assets and liabilities (“exchange-out assets”) itheld as at 31 December 2015 (“assessment base date”) for the equivalent portion (“exchange-inassets”) of 68.40%, 9.93%, 6.75%, 6.75%, 6.75%, 1.35% and 0.07% of the equities in ShenzhenS.F. Taisen Holdings (Group) Co., Ltd. (formerly “S.F. Holding (Group) Co., Ltd.”, “Taisen Holdings”)respectively held by Shenzhen Mingde Holdings Development Co., Ltd. (“Mingde Holdings”),Ningbo Shunda Fengrun Investment Management Partnership (Limited Partnership) (“ShundaFengrun”), Jiaqiang Shunfeng (Shenzhen) Equity Investment Partnership (Limited Partnership)(“Jiaqiang Shunfeng”), Shenzhen Zhaoguang Investment Co., Ltd. (“Zhaoguang Investment”),Suzhou Industrial Park Oriza Shunfeng Equity Investment Company (Limited Partnership) (“OrizaShunfeng”), Suzhou Guyu Qiuchuang Equity Investment Partnership (Limited Partnership) (“GuyuQiuchuang”) and Ningbo Shunxin Fenghe Investment Management Partnership (LimitedPartnership) (“Shunxin Fenghe”). For this transaction, the exchange-out assets were priced at RMB796 million and the exchange-in assets were priced at RMB 43.30 billion. Pursuant to the secondinterim shareholders’ meeting in 2016 dated 28 December 2016 (“restructuring date”), the Companyapproved and reelected a new Board of Directors, which indicated the completion of major assetsswap transaction and the successful listing of Taisen Holdings on Shenzhen Stock Exchangethrough back door listing.
(2) Issuing shares to purchase assets
In December 2016, the Company issued 3,950,185,873 ordinary shares (A shares) at par value ofRMB 1.00 per share at an issuing price of RMB 10.76 per share to Mingde Holdings, ShundaFengrun, Jiaqiang Shunfeng, Zhaoguang Investment, Oriza Shunfeng, Guyu Qiuchuang andShunxin Fenghe to cover the difference of the above swap (RMB 42,504,000,000). The differencebetween the value of shares and the share capital amounting to RMB 38,553,814,120.48 wasrecognised as capital reserve. The total share capital was changed to 4,183,678,213 shares. Afterthe new shares were issued, Mingde Holdings, Shunda Fengrun, Jiaqiang Shunfeng, ZhaoguangInvestment, Oriza Shunfeng and other shareholders held 64.58%, 9.38%, 6.37%, 6.37%, 6.37%and 6.92% respectively of the equities in the Company. The China Securities RegulatoryCommission approved the above assets restructuring plan of the Company on 12 December 2016.The share change above was verified by PricewaterhouseCoopers Zhong Tian LLP with a capitalverification report of PwC ZT Yan Zi (2016) No. 1757 issued on 28 December 2016. The Companyregistered the additional 3.95 billion shares at China Securities Depository and the ClearingCorporation Limited Shenzhen Branch on 18 January 2017.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
1 General information and historical development (Cont’d)
(3) Raising matching fund
In July 2017, the Company issued 227,337,311 ordinary shares (A shares) at par value of RMB 1.00per share to specific investors through non-public offering at RMB 35.19 per share. The total fundraised amounted to RMB 7,999,999,974.09. Net of underwriter and sponsor’s fees and othertransaction costs, the net fund raised amounted to RMB 7,822,179,636.78, including an incrementof share capital of RMB 227,337,311.00 and an increment of capital reserve by RMB7,604,681,212.80. The aforesaid fund was received on 31 July 2017 and verified byPricewaterhouseCoopers Zhong Tian LLP with a capital verification report of PwC ZT Yan Zi (2017)No. 745 issued.
The Company registered the additional shares at China Securities Depository and the ClearingCorporation Limited Shenzhen Branch on 15 August 2017. The total share capital was changed to4,411,015,524 shares. Mingde Holdings, Shunda Fengrun, Jiaqiang Shunfeng, ZhaoguangInvestment, Oriza Shunfeng and other shareholders held 61.25%, 8.89%, 6.04%, 6.04%, 6.04%and 11.74% of the equities in the Company respectively.
Afterwards, the Company conducted several restricted shares incentive plans, share repurchaseand transfer of convertible corporate debentures to share capital. The total share capital of theCompany as at 30 June 2021 was changed to 4,556,440,455 shares.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
1 General information and historical development (Cont’d)
The approved business scope of the Company and its subsidiaries (“the Group”) includes: assetsmanagement, capital management, investment management (trusts, financial assets managementand security assets management are not allowed); auto rent; enterprise headquarters management;customs brokerage, inspection brokerage; investment in industries; domestic trade; marketingplanning; investment consultancy and other information consultancy (excluding human resourcesintermediary service, securities and restricted projects); engagement in the development of networktechnology, information technology and electronic product technology and related technologyservices, consultancy and transfer of network technology, and provision of network information,E-Commerce service platform, business management, investment consultancy, investmentmanagement, enterprise management consulting, etc.; call centre business and information service(both are second type value-added telecommunication services) and road transportation of commoncargo; international freight forwarding for air transportation and road transportation of imported andexported goods or transit goods, including solicitation, booking, shipping, warehousing andpackaging; type-1 and type-2 (international and domestic) sales agency of air transport; commoncargo transportation, stowage and logistics services; science and technology information consulting,project investment consulting and logistics information consulting; data processing; research anddevelopment and sales of communication equipment, and related technology services (projectssubject to approval could only be implemented after approval by relevant authorities), research anddevelopment of unmanned aerial vehicle(“UAV”) and spare parts; supply chain management andrelated supporting services, and engagement in both export and import business; development,construction and operation of industrial park; property management; self-owned property leasing;network marketing promotion; E-Commerce training; information technology outsourcing andinformation services outsourcing; data mining, data analysis and data services; development andapplication of general software, industry application software and embedded software; operation ofon-line trading, on-line consulting, on-line auction and on-line advertising; network business serviceand database service; services in respect of development and application of electronic governmentaffairs system; communications industry value-added business services; international freightforwarding, domestic and international express (excluding business exclusively operated by postalenterprises), transportation of cargo shipping containers and large objects, economic and technicalconsulting, technical information consulting, and engagement in commercial activities by way offranchising; transport services of domestic (including Hong Kong, Macau and Taiwan) andinternational aviation cargo and related services, and import and export of goods and technology;cargo express agent services; international freight forwarding (excluding shipping agency business),loading, unloading and handling; international and domestic freight forwarding; technologydevelopment of software and hardware for financial payment systems; internet payment, bank cardacquiring, supply chain management; non-securities equity investment activities and relevantconsulting services; finance leasing; leasing; purchase of leased property from home and abroad;residual value processing and maintenance of leased property; leasing consulting; commercialfactoring related to main operating activities; delivery of goods; freight equipment leasing; containeryard operation and container leasing service; railway cargo transportation; ship freight; productmarketing design and planning for enterprises and individuals and related business agency services;non-vessel operating common carrier business; maritime international freight forwarding business;building construction engineering; wholesale of medicine and medical equipment; sales of food;human resources service.
First-tier and second-tier subsidiaries included in the consolidation scope of the financial statementsare detailed in Note 6(1). The changes in the scope of consolidation for the current period are setout in Note 5.
Mingde Holdings is the parent company and ultimate controlling company of the Company, and MrWang Wei is the ultimate controller of the Company.
These financial statements were authorised for issue by the Board of Directors of the Company on20 August 2021.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates
The Group determines the specific accounting policies and estimates based on its features ofproduction and operation, primarily comprising the methods of provision for expected credit losseson receivables and contract assets (Note 2(9)), valuation of inventories (Note 2(10)), measurementmodel of investment properties (Note 2(12)), depreciation of fixed assets and amortisation ofintangible assets and right-of-use assets (Note 2(13), (16), (28)), criterion for capitalisation ofcapitalised development expenditures (Note 2(17)), recognition and measurement of revenue (Note2(26)), etc.
Details of the Group’s critical judgements, critical accounting estimates and key assumptions usedin determining significant accounting policies are set forth in Note 2(30).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for BusinessEnterprises - Basic Standard, and the specific accounting standards and other relevant regulationsissued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter,referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the disclosurerequirements in the Preparation Convention of Information Disclosure by Companies OfferingSecurities to the Public No. 15 - General Rules on Financial Reporting issued by the ChinaSecurities Regulatory Commission.
The financial statements are prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the six months ended 30 June 2021 are in compliancewith the Accounting Standards for Business Enterprises, and truly and completely present theconsolidated and company financial position of the Company as at 30 June 2021 and their financialperformance, cash flows and other information for the period then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The Company’s recording currency is Renminbi (RMB). The Company’s subsidiaries decide theirrecording currencies in line with the economic environments in which they operate, while thesubsidiaries in Hong Kong and abroad mainly adopt currencies including HKD, USD, KRW, EUR,etc. as their recording currencies. The financial statements are presented in RMB.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the Group in a business combination aremeasured at the carrying amount. If the acquiree is acquired from a third party by the ultimatecontrolling party in a prior year, the consideration paid and net assets obtained by the Group aremeasured based on the carrying amounts of the acquiree’s assets and liabilities (including thegoodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented inthe consolidated financial statements of the ultimate controlling party. The difference between thecarrying amount of the net assets obtained from the combination and the carrying amount of theconsideration paid for the combination is treated as an adjustment to capital reserve (sharepremium). If the capital reserve (share premium) is not sufficient to absorb the difference, theremaining balance is adjusted against retained earnings. Costs directly attributable to the businesscombination are included in profit or loss in the period in which they are incurred. Transaction costsassociated with the issue of equity or debt securities for the business combination are included inthe initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The combination cost and identifiable net assets obtained by the Group in a business combinationare measured at fair value at the acquisition date. Where the combination cost exceeds the Group’sinterest in the fair value of the acquiree’s identifiable net assets, the difference is recognised asgoodwill; where the combination cost is lower than the Group’s interest in the fair value of theacquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period.Costs directly attributable to the combination are included in profit or loss in the period in which theyare incurred. Transaction costs associated with the issue of equity or debt securities for thebusiness combination are included in the initially recognised amounts of the equity or debtsecurities.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(6) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all ofits subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and arede-consolidated from the date on which such control ceases. For a subsidiary that is acquired in abusiness combination involving enterprises under common control, it is included in the consolidatedfinancial statements from the date when it, together with the Company, comes under commoncontrol of the ultimate controlling party. The portion of the net profits realised before the combinationdate is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and theaccounting periods of the Company and subsidiaries are inconsistent, the financial statements ofthe subsidiaries are adjusted in accordance with the accounting policies and the accounting periodof the Company. For subsidiaries acquired from business combinations involving enterprises notunder common control, the individual financial statements of the subsidiaries are adjusted based onthe fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in theconsolidated financial statements. The portion of subsidiaries’ equity and the portion of subsidiaries’net profit or loss and comprehensive income for the period not attributable to the Company arerecognised as minority interests, minority interest income and total comprehensive incomeattributable to minority shareholders and presented separately in the consolidated financialstatements under equity, net profit and total comprehensive income respectively. Where the loss forthe current period attributable to the minority shareholders of the subsidiaries exceeds the share ofthe minority interests in the opening balance of equity, the excess is still deducted against minorityinterests. Unrealised profits and losses resulting from the sale of assets by the Company to itssubsidiaries are fully eliminated against net profit attributable to owners of the parent. Unrealisedprofits and losses resulting from the sale of assets by a subsidiary to the Company are eliminatedand allocated between net profit attributable to owners of the parent and minority interest income inaccordance with the allocation proportion of the parent in the subsidiary. Unrealised profits andlosses resulting from the sale of assets by one subsidiary to another are eliminated and allocatedbetween net profit attributable to owners of the parent and minority interest income in accordancewith the allocation proportion of the parent in the selling subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at the Grouplevel and at the Company or its subsidiary level, adjustment will be made from the perspective of theGroup.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand,and short-term and highly liquid investments that are readily convertible to known amounts of cashand which are subject to an insignificant risk of changes in value.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Foreign currency translation
(a) Foreign currency transactions
Foreign currency transactions are translated into recording currency using the spot exchange ratesand approximate exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated intorecording currency using the spot exchange rates on the balance sheet date. Exchange differencesarising from these translations are recognised in profit or loss for the current period, except for thoseattributable to foreign currency borrowings that have been taken out specifically for acquisition orconstruction of qualifying assets, which are capitalised as part of the cost of those assets.Non-monetary items denominated in foreign currencies that are measured at historical costs aretranslated at the balance sheet date using the spot exchange rates at the date of the transactions.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spotexchange rates on the balance sheet date. Among the equity items, the items other than retainedearnings are translated at the spot exchange rates of the transaction dates. The income andexpense items in the income statement of foreign operations are translated at the spot exchangerates of the transaction dates. The differences arising from the above translation are recognised inother comprehensive income. The cash flows of foreign operations are translated at the spotexchange rates on the dates of the cash flows. The effect of exchange rate changes on cash ispresented separately in the cash flow statement.
(9) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity. A financial asset or a financial liability is recognisedwhen the Group becomes a party to the contractual provisions of the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flowcharacteristics of the financial assets, financial assets are classified as: (1) financial assets atamortised cost; (2) financial assets at fair value through other comprehensive income; (3) financialassets at fair value through profit or loss.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
The financial assets are measured at fair value at initial recognition. Related transaction costs thatare attributable to the acquisition of the financial assets are included in the initially recognisedamounts, except for the financial assets at fair value through profit or loss, the related transactioncosts of which are recognised directly in profit or loss for the current period. Accounts receivable ornotes receivable arising from sales of products or rendering of services (excluding or without regardto significant financing components) are initially recognised at the consideration that is entitled to becharged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financialliabilities from the perspective of the issuer, and are measured in the following ways:
Measured at amortised cost:
The objective of the Group’s business model is to hold the financial assets to collect the contractualcash flows, and the contractual cash flow characteristics are consistent with a basic lendingarrangement, which gives rise on specified dates to the contractual cash flows that are solelypayments of principal and interest on the principal amount outstanding. The interest income of suchfinancial assets is recognised using the effective interest method. Such financial assets mainlycomprise cash at bank and on hand, notes receivable, accounts receivable, factoring receivables,loans and advances, other receivables and long-term receivables. Long-term receivables that aredue within one year (inclusive) as from the balance sheet date are included in the current portion ofnon-current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or thosemeasured at fair value through other comprehensive income, are measured at fair value throughprofit or loss. At initial recognition, the Group designates a portion of financial assets as at fair valuethrough profit or loss to eliminate or significantly reduce an accounting mismatch. Financial assetsmeasured at fair value through profit or loss that are due after one year (inclusive) as from thebalance sheet date and are expected to be held over one year are included in other non-currentfinancial assets, and others are included in financial assets held for trading.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significantinfluence, are measured at fair value through profit or loss under financial assets held for trading;investments in equity instruments expected to be held over one year as from the balance sheet dateare included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designatedas financial assets at fair value through other comprehensive income under investments in otherequity instruments. The relevant dividend income of such financial assets is recognised in profit orloss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets andcontract assets measured at amortised cost.
Giving consideration to reasonable and supportable information on past events, current conditionsand forecasts of future economic conditions, as well as the default risk weight, the Group recognisesthe expected credit loss as the probability-weighted amount of the present value of the differencebetween the cash flows receivable from the contract and the cash flows expected to collect.
As at each balance sheet date, the expected credit losses of financial instruments at different stagesare measured respectively. 12-month expected credit loss provision is recognised for financialinstruments in Stage 1 that have not had a significant increase in credit risk since initial recognition;lifetime expected credit loss provision is recognised for financial instruments in Stage 2 that havehad a significant increase in credit risk yet without credit impairment since initial recognition; andlifetime expected credit loss provision is recognised for financial instruments in Stage 3 that havehad credit impairment since initial recognition.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
For the financial instruments with lower credit risk on the balance sheet date, the Group assumesthere is no significant increase in credit risk since initial recognition and recognises the 12-monthexpected credit loss provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates theinterest income by applying the effective interest rate to the gross carrying amount (beforededuction of the impairment provision). For the financial instruments in Stage 3, the interest incomeis calculated by applying the effective interest rate to the amortised cost (after deduction of theimpairment provision from the gross carrying amount).
For notes and accounts receivables and contract assets, the Group recognises the lifetimeexpected credit loss provision regardless of whether there exists a significant financing component.
In case the expected credit losses of an individually assessed financial asset cannot be evaluatedwith reasonable cost, the Group divides the receivables into certain groupings based on credit riskcharacteristics, and calculates the expected credit losses for the groupings. Basis for determininggroupings and methods for provision are presented as follows:
| Bank acceptance notes | Group of bank notes with low credit risk |
| Accounts receivable, other receivables | Group of receivables from related parties |
| Accounts receivable, other receivables and contract assets | Group of receivables from non-related parties |
| Long-term receivables | Group of finance leases |
| Long-term receivables | Group of interest-free loans to employees |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights toreceive the cash flows from the financial asset expire; (2) the financial asset has been transferredand the Group transfers substantially all the risks and rewards of ownership of the financial asset tothe transferee; or (3) the financial asset has been transferred and the Group has not retained controlof the financial asset, although the Group neither transfers nor retains substantially all the risks andrewards of ownership of the financial asset.
When a financial asset is derecognised, the difference between the carrying amount and the sum ofthe consideration received and the cumulative changes in fair value that are previously recogniseddirectly in other comprehensive income is recognised in profit or loss for the current period, exceptfor those as investments in other equity instruments, the difference aforementioned is recognised inretained earnings instead.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fairvalue through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, includingconvertible corporate debentures and other financial liabilities.
Convertible corporate debentures
Convertible corporate debentures comprise liability portion and equity portion. The liability portion isclassified as liabilities, which reflects the obligation to pay fixed principal and interest, and its fairvalue is calculated by the market interest rate of similar debentures without embedded convertibleoption at initial recognition, and is subsequently measured at amortised cost using the effectiveinterest method. The equity portion reflects the embedded option that converts liabilities intoordinary shares, which can only be settled by exchanging a fixed amount of its own equityinstruments for a fixed amount of cash or other financial assets. The difference between the overallproceeds of issuance of convertible corporate debentures and the liability portion is recognised asequity by the Group. Direct transaction costs are allocated based on the shares of the liabilityportion and the equity portion in issuance proceeds.
When convertible corporate debentures are converted into stock shares, the amount calculated bythe number of shares converted and the par value per share is recognised as share capital, and thedifference between the balance of relevant portion of convertible corporate debentures and theabove share capital is recognised as share premium in capital reserve.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(b) Financial liabilities (Cont’d)
Other financial liabilities
Other financial liabilities measured at amortised cost mainly comprise notes and accounts payables,other payables, borrowings, other debentures payable except for convertible corporate debentures,etc. Such financial liabilities are initially recognised at fair value, net of transaction costs incurred,and subsequently measured using the effective interest method. Financial liabilities that are duewithin one year (inclusive) are classified as current liabilities; those with maturities over one year butare due within one year (inclusive) as from the balance sheet date are classified as current portionof non-current liabilities. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation isdischarged or partly discharged. The difference between the carrying amount of the derecognisedpart of the financial liability and the consideration paid is recognised in profit or loss for the currentperiod.
(c) Equity instruments
An equity instrument is a contract that represents a residual interest in the assets of an entity afterdeducting all of its liabilities.
(d) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quotedprice in the active market. The fair value of a financial instrument that is not traded in an activemarket is determined by using a valuation technique. In valuation, the Group adopts valuationtechniques applicable in the current situation and supported by adequate available data and otherinformation, selects inputs with the same characteristics as those of assets or liabilities consideredin relevant transactions of assets or liabilities by market participants, and gives priority to the use ofrelevant observable inputs. When relevant observable inputs are not available or feasible,unobservable inputs are adopted.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(e) Hedge accounting
The hedge accounting method refers to a method to recognise gains or losses arising from ahedging instrument and a hedged item in profit or loss for the current period (or othercomprehensive income) to reflect the effect of the risk management activities.
The hedged item refers to an item which exposes the Group to risks of changes in fair value or cashflows and is designated as being hedged and can be measured reliably. The hedged itemdesignated by the Group is the 5-year debentures denominated in USD which exposes the Group torisks of changes in cash flows.
The hedging instrument refers to a financial instrument which is designated by the Group and bywhich it is expected that changes in its fair value or cash flow can offset the changes in fair value orcash flow of the hedged item. The Group’s hedging instruments are the 5-year forward exchangecontracts denominated in USD.
The Group, on an ongoing basis, assess at inception of the hedging relationship and in subsequentperiods, whether a hedging relationship qualifies for hedge accounting. A hedging relationshipqualifies for hedge accounting only if all of the following criteria are met:
-there is an economic relationship between the hedged item and the hedging instrument;-the effect of credit risk does not dominate the value changes that result from that economicrelationship;
-the hedge ratio of the hedging relationship is the same as that resulting from the quantity of thehedged item that the entity actually hedges and the quantity of the hedging instrument that theentity actually uses to hedge that quantity of hedged item.
If a hedging relationship becomes ineffective due to the hedge ratio but the risk managementobjective for designating such hedging relationship remains the same, the Group will make anadjustment to the quantity of the hedged item or the hedging instrument in the existing hedgingrelationship for the purpose of realigning the hedge ratio to achieve hedge effectiveness.
The hedging accounting is discontinued in case of one of the following conditions:
-the hedging relationship no longer meets the risk management objective on the basis of whichit qualified for hedge accounting;
-the hedging instrument or instruments have been due, sold, or the contract has beenterminated or exercised;
-there is no longer an economic relationship between the hedged item and the hedginginstrument or the effect of credit risk starts to dominate the value changes that result from thateconomic relationship;
-other conditions that a hedging relationship no longer qualifies for hedge accounting.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(e) Hedge accounting (Cont’d)
(i)Cash flow hedge
The Group adopts the cash flow hedge. A cash flow hedge refers to a hedge of the exposure tochanges in cash flows. The effective portion of gains or losses arising from the hedging instrumentis recognised as cash flow hedging reserve in other comprehensive income. Amount of cash flowhedging reserve is the lower of the following two (in absolute amount):
-the cumulative gains or losses arising from the hedging instrument since inception of thehedge;
-the cumulative change in present value of the expected future cash flows on the hedged itemsince inception of the hedge.
The amount of cash flow hedging reserve included in other comprehensive income during eachperiod represents the change in cash flow hedging reserve for the current period.
The ineffective portion of gains or losses arising from hedging instrument is recognised in profit orloss for the current period.
When the Group discontinues hedge accounting for a cash flow hedge, it shall account for theamount that has been accumulated in the cash flow hedging reserve recognised in othercomprehensive income in accordance with the accounting policies as follows:
-if the hedged future cash flows are still expected to occur, that amount shall remain in the cashflow hedging reserve and be accounted for in accordance with the above-mentionedaccounting policies;
-if the hedged future cash flows are not expected to occur, that amount shall be immediatelyreclassified from other comprehensive income to profit or loss for the current period.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Inventories
(a) Classification
Inventories comprise low-value consumables, raw materials in stock, finished goods, costs to fulfil acontract(Note 2(26)(a)), aviation consumables and properties under development, and are stated atthe lower of cost and net realisable value.
(b) Valuation method for inventory issued
Raw materials in stock and finished goods are accounted for using the weighted average methodupon issuance. Aviation consumables are accounted for using the specific-unit-cost method uponissuance. Properties under development comprise land costs, construction costs, other direct andindirect development expenses, etc., and are transferred to completed properties held for sale atactual cost upon completion.
(c) Amortisation methods of low-value consumables
Low-value consumables are amortised into expenses in full when issued for use.
(d) Basis for determining the net realisable value of inventories and provision for decline in the value of
inventories
Provision for decline in the value of inventories is determined at the excess amount of the carryingamounts of the inventories over their net realisable value. Net realisable value is determined basedon the estimated selling price in the ordinary course of business, less the estimated costs andestimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in itssubsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.
A subsidiary is an investee over which the Company is able to exercise control. A joint venture is ajoint arrangement which is structured through a separate vehicle over which the Group has jointcontrol together with other parties and only has rights to the net assets of the arrangement based onlegal forms, contractual terms and other facts and circumstances. An associate is the investee overwhich the Group has significant influence by participating in the financial and operating policydecisions.
Investments in subsidiaries are presented in the Company’s financial statements using the costmethod, and are adjusted to the equity method when preparing the consolidated financialstatements, and investments in joint ventures and associates are accounted for using the equitymethod.
(a) Determination of investment cost
For long-term equity investments arising from business combination involving enterprises undercommon control, the initial investment cost shall be the share of the carrying amount of equity of theacquiree in the consolidated financial statements of the ultimate controlling party as at thecombination date; for long-term equity investments arising from business combination involvingenterprises not under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination: for long-term equityinvestments acquired by payment in cash, the initial investment cost shall be the purchase priceactually paid; for long-term equity investments acquired by issuing equity securities, the initialinvestment cost shall be the fair value of the equity securities issued.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments (Cont’d)
(b) Subsequent measurement and recognition methods of gains and losses
Long-term equity investments accounted for using the cost method are measured at the initialinvestment cost. Cash dividend or profit distribution declared by an investee is recognised asinvestment income in profit or loss for the current period.
For long-term equity investments that are accounted for using the equity method, where the initialinvestment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assetsat the time of acquisition, the investment is initially measured at cost. Where the initial investmentcost is less than the Group’s share of the fair value of the investee’s identifiable net assets at thetime of acquisition, the difference is included in profit or loss for the current period and the cost of thelong-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of netprofit or loss of the investee. The Group discontinues recognising its share of the net losses of aninvestee after the carrying amounts of the long-term equity investment together with any long-terminterests that in substance form part of the investor’s net investment in the investee are reduced tozero. However, if the Group has obligations for additional losses and the criteria with respect torecognition of provisions are satisfied, the Group continues recognising the estimated losses that itneeds to bear. The changes of the Group’s share of the investee’s equity other than those arisingfrom the net profit or loss, other comprehensive income and profit distribution, are recognised in theGroup’s capital reserve and the carrying amounts of the long-term equity investment are adjustedaccordingly. The carrying amount of the investment is reduced by the Group’s share of the profitdistribution or cash dividends declared by an investee. The unrealised profits or losses arising fromthe transactions between the Group and its investees are eliminated in proportion to the Group’sequity interest in the investees, based on which the investment gain or losses are recognised. Forthe loss on the intra-group transaction amongst the Group and its investees attributable to assetimpairment losses, any unrealised loss is not eliminated.
(c) Basis for determining existence of control, joint control, significant influence over investees
Control means having power over an investee, enjoying variable returns through involvement inrelevant activities of the investee, and being able to impact the amount of such variable returns byusing the power over the investee.
Joint control is the agreed sharing of control over an arrangement, and the decision of activitiesrelating to such arrangement requires the unanimous consent of the Group and other partiessharing control.
Significant influence is the power to participate in making the decisions on financial and operatingpolicies of the investee, but is not control or joint control over making those policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associatesare reduced to the recoverable amounts when the recoverable amounts are below their carryingamounts (Note 2(19)).
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Investment properties
Investment properties, including land use rights that have already been leased out, buildings thatare held for the purpose of leasing and buildings that are being constructed or developed for futureuse for leasing, are measured initially at cost. Subsequent expenditures incurred in relation to aninvestment property are included in the cost of the investment property when it is probable that theassociated economic benefits will flow to the Group and their costs can be reliably measured;otherwise, the expenditures are recognised in profit or loss for the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildingsand land use rights are depreciated or amortised to their estimated net residual values over theirestimated useful lives. The estimated useful lives, the estimated net residual values that areexpressed as a percentage of cost and the annual depreciation rates of investment properties arepresented as follows:
| Estimated useful lives | Estimated net residual values | Annual depreciation/ amortisation rates | |
| Buildings | 10 to 50 years | 5% | 9.50% - 1.90% |
| Land use rights | 20 to 50 years | 0% | 5.00% - 2.00% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, motor vehicles, computers and electronic equipment, aircraft andaircraft engines, rotables and high-value aircraft maintenance tools, machinery and equipment,office equipment and other equipment.
Fixed assets are recognised when it is probable that the associated economic benefits will flow tothe Group and the related cost can be reliably measured. Fixed assets purchased or constructedare initially measured at cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset whenit is probable that the associated economic benefits will flow to the Group and the related cost canbe reliably measured. The carrying amount of the replaced part is derecognised. All the othersubsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b) Depreciation method for fixed assets
Except for replacement parts for overhaul of engine, fixed assets are depreciated using thestraight-line method to allocate the recorded amount of the assets to their estimated residual valuesover their estimated useful lives. For the fixed assets that have been provided for impairment loss,the related depreciation charge is prospectively determined based upon the adjusted carryingamounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost andthe annual depreciation rates of fixed assets are presented as follows:
| Estimated useful lives | Estimated net residual values | Annual depreciation rates | |
| Buildings | 10 to 50 years | 5% | 9.50% - 1.90% |
| Motor vehicles (excluding electromobiles) | 2 to 5 years | 0% - 5% | 50.00% - 19.00% |
| Motor vehicles (electromobiles) | 2 years | 5% | 47.50% |
| Machinery and equipment (excluding automatic sorting equipment imported from abroad) | 2 to 10 years | 0% - 5% | 50.00% - 9.50% |
| Machinery and equipment (automatic sorting equipment imported from abroad) | 15 years | 5% | 6.33% |
| Computers and electronic equipment | 2 to 5 years | 0% - 5% | 50.00% - 19.00% |
| Aircraft and engine bodies | 10 years | 5% | 9.50% |
| Replacement parts for overhaul of aircraft fuselage | 1.5 to 10 years | 0% | 66.67% - 10.00% |
| Rotables | 10 years | 5% | 9.50% |
| High-value aircraft maintenance tools | 5 years | 5% | 19.00% |
| Office equipment and other equipment | 2 to 10 years | 0% - 5% | 50.00% - 9.50% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Fixed assets (Cont’d)
(b) Depreciation method for fixed assets (Cont'd)
Replacement parts for overhaul of engines are depreciated using the units-of-production methodand taking the expected usable recurring number as the unit of production.
The estimated useful life/expected usable recurring number and the estimated net residual value ofa fixed asset and the depreciation method applied to the asset are reviewed, and adjusted asappropriate at each year-end.
(c) The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable
amounts are below their carrying amounts (Note 2(19)).
(d) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefit is expected from itsuse or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of afixed asset net of its carrying amount and related taxes and expenses is recognised in profit or lossfor the current period.
(14) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs,installation costs, borrowing costs that are eligible for capitalisation and other costs necessary tobring the construction in progress ready for their intended use. Construction in progress istransferred to fixed assets when the assets are ready for their intended use, and depreciationbegins from the following month. The carrying amount of construction in progress is reduced to therecoverable amount when the recoverable amount is below its carrying amount (Note 2(19)).
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(15) Borrowing costs
The Group’s borrowing costs that are directly attributable to the acquisition and construction of afixed asset that needs a substantially long period of time for its intended use commence to becapitalised and recorded as part of the cost of the asset when expenditures for the asset andborrowing costs have been incurred, and the activities relating to the acquisition and constructionthat are necessary to prepare the asset for its intended use have commenced. The capitalisation ofborrowing costs ceases when the asset under acquisition or construction becomes ready for itsintended use and the borrowing costs incurred thereafter are recognised in profit or loss for thecurrent period. Capitalisation of borrowing costs is suspended during periods in which theacquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts formore than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying forcapitalisation, the amount of borrowing costs eligible for capitalisation is determined by deductingany interest income earned from depositing the unused specific borrowings in the banks or anyinvestment income arising on the temporary investment of those borrowings during thecapitalisation period.
For general borrowings utilised for the acquisition and construction of an asset qualifying forcapitalisation, the capitalised amount of the general borrowings is determined by the weightedaverage of the excess of accumulated capital expenditure over capital expenditure of the specialborrowings multiplied by the weighted average effective interest rate of the utilised generalborrowings. The effective interest rate is the interest rate at which the future cash flows of theborrowings over the estimated life or a shorter applicable period are discounted into the initialrecognised amount of the borrowings.
(16) Intangible assets
Intangible assets include software, land use rights, trademark rights, customer relationships, patents,etc. and the Group choose to use cost model.
(a) Software
Software is measured at actual cost and amortised on the straight-line basis over 2 to 10 years.
(b) Land use rights
Land use rights are amortised on the straight-line basis over 33 to 50 years.
(c) Trademark rights
Purchased trademark rights are measured at cost at the time of acquisition. Trademark rightsrecognised under business combinations involving enterprises not under common control arerecorded at fair value. Trademark rights are amortised on the straight-line basis over 5 to 20 years.
(d) Customer relationships
Customer relationships refer to intangible assets recognised under business combinations involvingenterprises not under common control. Customer relationships are recorded at fair value andamortised on the straight-line basis over the expected beneficial period.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Intangible assets (Cont’d)
(e) Patents
Patents are amortised on the straight-line basis over 5 to 10 years.
(f) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method isperformed at each year-end, with adjustment made as appropriate.
(g) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when therecoverable amounts are below their carrying amounts (Note 2(19)).
(17) Research and development
The expenditure on an internal research and development project is classified into expenditure onthe research phase and expenditure on the development phase based on its nature and whetherthere is material uncertainty that the research and development activities can form an intangibleasset at the end of the project.
Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred.Expenditure on the development phase is capitalised only if all of the following conditions aresatisfied:
? it is technically feasible to complete the intangible asset so that it will be available for use or
sales;? management intends to complete the intangible asset, and use or sell it;? it can be demonstrated how the intangible asset will generate economic benefits;? there are adequate technical, financial and other resources to complete the development and
the ability to use or sell the intangible asset; and? the expenditure attributable to the intangible asset during its development phase can be
reliably measured.
Other development expenditures that do not meet the conditions above are recognised in profit orloss in the period in which they are incurred. Capitalised development expenditures previouslyrecognised as expenses are not recognised as an asset in a subsequent period. Capitalisedexpenditure on the development phase is presented as capitalised development expenditures in thebalance sheet and transferred to intangible assets at the date when the asset is ready for itsintended use.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(18) Long-term prepaid expenses
Long-term prepaid expenses include settling-in allowance and introduction fee for pilots, theexpenditure for improvements to right-of-use assets, and other expenditures that have beenincurred but should be recognised as expenses over more than one year in the current andsubsequent periods. Long-term prepaid expenses are amortised on a straight-line basis over theexpected beneficial period (2 to 15 years) and are presented at actual expenditure net ofaccumulated amortisation.
(19) Impairment of long-term assets
Fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful lives,investment properties measured using the cost model and long-term equity investments insubsidiaries, joint ventures and associates are tested for impairment if there is any indication thatthe assets may be impaired at the balance sheet date; intangible assets not ready for their intendeduse are tested at least annually for impairment, irrespective of whether there is any indication that itmay be impaired. If the result of the impairment test indicates that the recoverable amount of anasset is less than its carrying amount, a provision for impairment and an asset impairment loss arerecognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an asset’s fair value less costs to sell and the present valueof the future cash flows expected to be derived from the asset. Provision for asset impairment isdetermined and recognised on individual asset basis. If it is not possible to estimate the recoverableamount of an individual asset, the recoverable amount of a group of assets to which the assetbelongs is determined. A group of assets is the smallest group of assets that is able to generateindependent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually forimpairment, irrespective of whether there is any indication that it may be impaired. In conducting thetest, the carrying amount of goodwill is allocated to the related asset groups or sets of asset groupswhich are expected to benefit from the synergies of the business combination. If the result of the testindicates that the recoverable amount of an asset group or a set of asset groups, including theallocated goodwill, is lower than its carrying amount, the corresponding impairment loss isrecognised. The impairment loss is first deducted from the carrying amount of goodwill that isallocated to the asset group or the set of asset groups, and then deducted from the carryingamounts of other assets within the asset group or the set of asset groups in proportion to thecarrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recoveredin the subsequent periods.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group inexchange for service rendered by employees or for termination of employment relationship, whichinclude short-term employee benefits, post-employment benefits, termination benefits and otherlong-term employee benefits.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonus, allowances andsubsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance andmaternity insurance, housing funds, union running costs and employee education costs. Theemployee benefit liabilities are recognised in the accounting period in which the service is renderedby the employees, with a corresponding charge to the profit or loss for the current period or the costof relevant assets. Employee benefits which are non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefits plans into defined contribution plans and definedbenefit plans. Defined contribution plans are post-employment benefit plans under which the Grouppays fixed contributions into a separate fund and will have no obligation to pay further contributions;and defined benefit plans are post-employment benefit plans other than defined contribution plans.During the reporting period, the Group’s post-employment benefits mainly included basic pensioninsurance and unemployment insurance, both of which belong to defined contribution plans.
Basic pension insurance
The Group’s employees participate in the basic pension plan set up and administered by localauthorities of Ministry of Human Resource and Social Security. Monthly payments of premiums onthe pensions are calculated according to local regulations for pension plan. When employees retire,the local labour and social security authority is obliged to pay the basic pensions to them. Theamounts based on the above calculations are recognised as liabilities in the accounting period inwhich the service has been rendered by the employees, with a corresponding charge to the profit orloss for the current period or the cost of relevant assets.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with employeesbefore the end of the employment contracts or as an offer to encourage employees to acceptvoluntary redundancy before the end of the employment contracts. The Group recognises a liabilityarising from compensation for termination of the employment relationship with employees, with acorresponding charge to profit or loss for the current period at the earlier of the following dates: 1)when the Group cannot unilaterally withdraw an employment termination plan or a curtailmentproposal; 2) when the Group recognises costs or expenses related to a restructuring that involvesthe payment of termination benefits.
The termination benefits expected to be settled within one year since the balance sheet date areclassified as current liabilities.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Employee benefits (Cont’d)
(d) Employee incentives
The Group provides incentive plans for on-the-job employees who comply with certain conditions,and makes payments based on the schedule. Provisions for employee incentives are initiallymeasured at the best estimate necessary to settle the present obligation, and expensed as incurred.The Group integrates separation rate, time value of money and other factors into account at initialmeasurement. Where the effect of the time value of money is material, the best estimate isdetermined by discounting the related future cash outflows. The increase in the discounted amountof the provision arising from passage of time is expensed as incurred. The carrying amount ofprovisions for employee incentives is reviewed at each balance sheet date and adjusted to reflectthe current best estimate.
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on thedifferences arising between the tax bases of assets and liabilities and their carrying amounts(temporary differences). Deferred tax asset is recognised for the deductible tax losses that can becarried forward to subsequent years for deduction of the taxable profit in accordance with the taxlaws. No deferred tax liability is recognised for a temporary difference arising from the initialrecognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporarydifferences resulting from the initial recognition of assets or liabilities due to a transaction other thana business combination, which affects neither accounting profit nor taxable profit (or deductible taxlosses). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured atthe tax rates that are expected to apply to the period when the asset is realised or the liability issettled.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Deferred tax assets and deferred tax liabilities (Cont’d)
Deferred tax assets are only recognised for deductible temporary differences, deductible tax lossesand tax credits to the extent that it is probable that taxable profit will be available in the futureagainst which the deductible temporary differences, deductible tax losses and tax credits can beutilised.
Deferred tax liabilities are recognised for temporary differences arising from investments insubsidiaries, associates and joint ventures, except where the Group is able to control the timing ofreversal of the temporary difference, and it is probable that the temporary difference will not reversein the foreseeable future. When it is probable that the temporary differences arising frominvestments in subsidiaries, associates and joint ventures will be reversed in the foreseeable futureand that the taxable profit will be available in the future against which the temporary differences canbe utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and deferred tax liabilities are offset when:
? the deferred tax assets and liabilities are related to the same tax payer within the Group andthe same taxation authority; and,? that tax payer within the Group has a legally enforceable right to offset current tax assetsagainst current tax liabilities.
(22) Provisions
Provisions are recognised when the Group has a present obligation, it is probable that an outflow ofeconomic benefits will be required to settle the obligation, and the amount of the obligation can bemeasured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the relatedpresent obligation. Factors surrounding a contingency, such as the risks, uncertainties and the timevalue of money, are taken into account as a whole in reaching the best estimate of a provision.Where the effect of the time value of money is material, the best estimate is determined bydiscounting the related future cash outflows. The increase in the discounted amount of the provisionarising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflectthe current best estimate.
The provisions expected to be settled within one year since the balance sheet date are classified ascurrent liabilities.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(23) Share-based payments
(a) Categories of share-based payments
A share-based payment is a transaction in which an enterprise grants equity instruments orassumes liabilities that are determined based on equity instruments, in exchange for servicesrendered by employees or another party. Equity instruments include the equity instruments that arelinked to the enterprise, the parent company of the enterprise or another accounting entity within thesame group. Share-based payments comprise equity-settled and cash-settled payments.
(b) Basis for determining the best estimate of exercisable equity instruments
At each balance sheet date in the vesting period, the Group would make best estimate in
accordance with the newly acquired information such as changes in the number of employeesentitled to equity instruments, and amend the number of exercisable equity instruments. On theexercisable date, the ultimate estimated number of exercisable equity instruments coincides withthe actual number.
(c) Accounting treatment of implementation of share-based payments
(i) Equity-settled share-based payments
The equity-settled share-based payments where the Group grants shares or other equity
instruments as a consideration in return for services, are measured at the fair value of the equityinstruments at the grant date. Where the share-based payments are not exercisable until the servicein the vesting period is completed or specified performance conditions are met, then at eachbalance sheet date within the vesting period, the service obtained in the current period shall beincluded in relevant cost or expenses and in capital reserve at the fair value of the equityinstruments at the grant date based on the best estimates of the quantity of exercisable equityinstruments made by the Group, in accordance with latest changes in the number of exercisableemployees and subsequent information.
(ii) Cash-settled share-based payments
The cash-settled share-based payments where the Group calculates and determines the cash
payments or any other asset obligation on the basis of shares or other equity instruments in returnfor services, are measured at the fair value of the liabilities calculated based on relevant equityinstruments. Where the share-based payments are not exercisable until the service in the vestingperiod is completed or specified performance conditions are met, then at each balance sheet datewithin the vesting period, the service obtained in the current period shall be included in cost orexpenses and in liabilities at the fair value of the Group’s liabilities based on the best estimates ofthe quantity of exercisable equity instruments made by the Group. At each balance sheet date andsettlement date before relevant liabilities are settled, the fair value of the liabilities is remeasuredand the changes are recognised in profit or loss.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Factoring
The factoring business of the Group mainly represents factoring with recourse. Factoring withrecourse is a kind of financing activity where the customer transfers the creditor’s rights of accountsreceivable that meet relevant requirements and are accepted by the Group to the Group accordingto the purchase and sale contract and relevant agreements, so as to obtain short-term tradefinancing, and agrees to repurchase the financing business in full if the creditor’s rights cannot berecovered in full. The Group’s factoring business is accounted for with factoring receivables basedon the amount paid for the creditor’s rights of accounts receivable (Note 2(9)).
(25) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from thegovernment, including tax return, financial subsidy, etc.
Government grants are recognised when the grants can be received and the Group can comply withall attached conditions. If a government grant is a monetary asset, it will be measured at the amountreceived or receivable. If a government grant is a non-monetary asset, it will be measured at its fairvalue. If it is unable to obtain its fair value reliably, it will be measured at its nominal amount.
Government grants related to assets refer to the government grants which are obtained by theGroup for the purposes of purchase, construction or to form long-term assets in other ways.Government grants related to income refer to the government grants other than those related toassets.
Government grants related to assets are recorded as deferred income and recognised in profit orloss on a systemic basis over the useful lives of the assets. Government grants related to incomethat compensate the future costs, expenses or losses are recorded as deferred income andrecognised in profit or loss, or deducted against related costs, expenses or losses in reporting therelated expenses; government grants related to income that compensate the incurred costs,expenses or losses are recognised in profit or loss, or deducted against related costs, expenses orlosses directly in the current period. The Group applies the presentation method consistently to thesimilar government grants in the financial statements.
Government grants related to daily activities are included in operating profit. Government grants notrelated to daily activities are included in non-operating income or expenses.
Policy-based loans with prime rate to the Group are recorded at actual amount of borrowingreceived, and related borrowing costs are calculated with borrowing principal and policy-basedprime rate. Financial discounts directly received by the Group are deducted against relatedborrowing costs.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(26) Revenue recognition
The Group recognises revenue at the consideration that the Group is entitled to charge as expectedwhen the Group has fulfilled the performance obligations in the contract, that is, the customerobtains control over relevant goods or services.
The Group transfers control of a good or service over time and, therefore, satisfies a performanceobligation and recognises revenue over time, if one of the following criteria is met:
? the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;? the Group’s performance creates or enhances an asset that the customer controls as the assetis created or enhanced; or? the Group’s performance does not create an asset with an alternative use to the Group and theGroup has an enforceable right to payment for performance completed to date.
Otherwise, revenue is recognised at a point in time when the customer obtains control over relevantgoods or services. In respect of a contract obligation that is to be fulfilled within a period, the Groupshould recognise the revenue based on the progress of the obligation fulfilment within the period,except that the progress of the obligation fulfilment fails to be reasonably determined; in respect of acontract obligation that is to be fulfilled at a point in time, the Group should recognise the revenueonce the customer obtains the control over relevant goods or services.
(a) Rendering express & logistics and supply chain services
The Group’s revenue from express & logistics and supply chain services includes revenue frominbound express delivery services including time-definite express and economy express, revenuefrom outbound express delivery services, revenue from cold-chain transportation services, revenuefrom domestic and international transport services of aviation cargoes, revenue from expressdelivery agency services; revenue from rendering of warehousing service; revenue from freightservices; revenue from intra-city instant delivery and revenue from supply chain service etc.
The Group recognises revenue based on the progress of the service performed within period, whichis determined based on proportion of costs incurred to date to the estimated total costs. As at thebalance sheet date, the Group re-estimates the progress of the service performed to reflect theactual status of contract performance.
When the Group recognises revenue based on the progress of the service performed, the amountwith unconditional right to consideration obtained by the Group is recognised as accountsreceivable, and the rest is recognised as contract assets. Meanwhile, provision for accountsreceivable and contract assets is recognised on the basis of expected credit losses (Note 2(9)). Ifthe contract consideration received or receivable exceeds the progress of the service performed,the excess portion will be recognised as contract liabilities. Contract assets and contract liabilitiesunder the same contract are presented on a net basis.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(26) Revenue recognition (Cont’d)
(a) Rendering express & logistics and supply chain services(Cont’d)
Contract costs include costs to fulfil a contract and costs to obtain a contract. Costs incurred forprovision of the aforesaid services are recognised as costs to fulfil a contract, which is carriedforward to the cost of revenue when revenue recognised based on the progress of the serviceperformed. Incremental costs incurred by the Group for the acquisition of the aforesaid servicecontract are recognised as the costs to obtain a contract. For the costs to obtain a contract with theamortisation period within one year, the costs are charged to profit or loss when incurred. For thecosts to obtain a contract with the amortisation period beyond one year, the costs are charged in thecurrent profit or loss on the same basis as aforesaid revenue of rendering of services recognisedunder the relevant contract. If the carrying amount of the contract costs is higher than the remainingconsideration expected to be obtained by rendering of the service net of the estimated cost to beincurred, the Group makes provision for impairment on the excess portion and recognises it asasset impairment losses. As at the balance sheet date, based on whether the amortisation period ofthe costs to fulfil a contract is more than one year when initially recognised, the amount of theGroup's costs to fulfil a contract net of related provision for asset impairment is presented asinventories or other non-current assets. For costs to obtain a contract with amortisation periodbeyond one year at the initial recognition, the amount net of related provision for asset impairment ispresented as other non-current assets.
(b) Sales of goods
Revenue from sales of goods is recognised when the Group has delivered goods to the agreeddelivery location pursuant to the contract and the customer has confirmed the acceptance of thegoods, and the delivery note is signed by both parties.
The credit terms granted to customers by the Group are generally short, in line with industry practice,and do not have a significant financing component.
(c) Other services
The Group’s services also include communication service, maintenance service, research anddevelopment and technical service and other services.
With regard to certain maintenance service and research and development services, the Grouprecognises revenue at a point in time when the services are delivered to customers. For otherservices, the Group recognises revenue based on the progress of the service performed withinperiod, which is determined based on proportion of costs incurred to date to the estimated totalcosts as at the balance sheet date.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(27) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by theshareholders’ meeting.
(28) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identifiedasset for a period of time in exchange for consideration.
(a) The Group as the lessee
At the commencement date, the Group shall recognise the right-of-use asset and measure the leaseliability at the present value of the lease payments that are not paid at that date. Lease paymentsinclude fixed payments, the exercise price of a purchase option if the lessee is reasonably certain toexercise that option, and payments of penalties for terminating the lease if the lessee exercises anoption to terminate the lease. Variable lease payments in proportion to sales are excluded fromlease payments and recognised in profit or loss as incurred. Lease liabilities that are due within oneyear (inclusive) as from the balance sheet date are included in the current portion of non-currentliabilities.
Right-of-use assets of the Group comprise leased buildings, machinery and equipment and motorvehicles etc. Right-of-use assets are measured initially at cost which comprises the amount of theinitial measurement of lease liabilities, any lease payments made at or before the commencementdate and any initial direct costs, less any lease incentives received. If there is reasonable certaintythat the Group will obtain ownership of the underlying asset by the end of the lease term, the assetis depreciated over its remaining useful life; otherwise the asset is depreciated over the shorter ofthe lease term and its remaining useful life. The carrying amount of the right-of-use assets isreduced to the recoverable amount when the recoverable amount is below the carrying amount(Note 2(19)).
For short-term leases with a term of 12 months or less and leases of an individual asset (when new)of low value, the Group may, instead of recognising right-of-use assets and lease liabilities, includethe lease payments in the cost of the underlying assets or in the profit or loss for the current periodon a straight-line basis over the lease term.
The Group shall account for a lease modification as a separate lease if both: (1) the modificationincreases the scope of the lease by adding the right to use one or more underlying assets; (2) theconsideration for the lease increases by an amount commensurate with the stand-alone price for theincrease in scope and any appropriate adjustments to that stand-alone price to reflect thecircumstances of the contract.
For a lease modification that is not accounted for as a separate lease, the Group shall redeterminethe lease term at the effective date of the lease modification, and remeasure the lease liability bydiscounting the revised lease payments using a revised discount rate, except that the contractchanges directly resulting from COVID-19 are accounted for by applying the practical expedient. Fora lease modification which decreases the scope of the lease or shortens the lease term, the Groupdecreases the carrying amount of the right-of-use asset, and recognises in profit or loss any gain orloss relating to the partial or full termination of the lease. For other leases which lead to theremeasurement of lease liabilities, the Group correspondingly adjusts the carrying amount of theright-of-use asset.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Leases (Cont’d)
(a) The Group as the lessee (Cont’d)
For the rental exemptions directly due to COVID-19 and being granted before 30 June 2022 only,the Group applies the practical expedient and records the exemption amount in profit or loss whenthe agreement is reached to dismiss the original payment obligation with corresponding adjustmentof lease liabilities.
(b) The Group as the lessor
A finance lease is a lease that transfers substantially all the risks and rewards incidental toownership of an asset. An operating lease is a lease other than a finance lease.
(i) Operating leases
Where the Group leases out self-owned buildings, machinery and equipment, and motor vehiclesunder operating leases, lease income therefrom is recognised on a straight-line basis over theperiod of the lease. Variable rental that is linked to a certain percentage of sales is recognised inlease income as incurred.
For the rental exemptions directly due to COVID-19 and being granted before 30 June 2022 only,the Group applies the practical expedient, accounts for the exemptions as variable lease paymentsand records the exemption amount in profit or loss in the exemption period.
Except that the above contract changes directly resulting from COVID-19 are accounted for byapplying the practical expedient, for a lease modification, the Group accounts for it as a new leasefrom the effective date of the modification, and considers any lease payments received in advanceand receivable relating to the lease before modification as receivables of the new lease.
(ii) Finance leases
At the commencement date of the lease term, the Group recognises the lease payments receivableunder a finance lease and derecognises relevant assets. The finance lease receivables arepresented as long-term receivables; finance lease receivables due within one year (inclusive) asfrom the balance sheet date are included in the current portion of non-current assets.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(29) Segment information
The Group identifies operating segments based on the internal organisation structure, managementrequirements and internal reporting system, and discloses segment information of reportablesegments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1)the component is able to earn revenue and incur expenses from its ordinary activities; (2) whoseoperating results are regularly reviewed by the Group’s management to make decisions aboutresources to be allocated to the segment and to assess its performance, and (3) for which theinformation on financial position, operating results and cash flows is available to the Group. If two ormore operating segments have similar economic characteristics and satisfy certain conditions, theyare aggregated into one single operating segment.
(30) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements appliedbased on historical experience and other factors, including expectations of future events that arebelieved to be reasonable.
(a) Critical accounting estimates and key assumptions
(i) Measurement of expected credit losses
For financial assets and contract assets at amortised cost, the Group calculates expected creditlosses based on exposure at default and expected credit loss rates. The Group refers to internalhistorical information, such as credit losses, and considers the impact of historical credit lossexperience according to current situation and forward-looking information to determine expectedcredit loss rates. And management takes the customer’s credit status, credit history, operatingstatus as well as collaterals, the guarantee ability of the guarantor and other information intoconsideration. The Group monitors and reviews relevant assumptions about expected credit lossesregularly. Where there is a difference between the actual bad debts and the original estimate, suchdifference will affect the Group’s provision for bad debts of the above assets in the future period.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Critical accounting estimates and judgements (Cont’d)
(a) Critical accounting estimates and key assumptions (Cont’d)
(ii) Risk of impairment on long-term assets other than goodwill
As described in Note 2(19), fixed assets with impairment indication, right-of-use assets, constructionin progress, intangible assets, investment properties measured using cost model, long-term equityinvestments and other long-term assets are tested for impairment annually at the end of each year.
When assessing whether the above assets are impaired, management mainly evaluates andanalyses: (1) whether events affecting asset impairment occurred; (2) whether the present value ofexpected cash flows arising from the continuing use or disposal of the asset is lower than itscarrying amount; and (3) whether the significant assumptions used in the calculation of the presentvalue of the estimated cash flows are appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptionson discount rate and growth rate used to calculate the present value of future cash flows, may havematerial impact on the present value used in the impairment test, and cause impairment in theabove-mentioned long-term assets of the Group.
(iii) Provision for impairment of goodwill
The Group performed impairment assessment of goodwill at each balance sheet date. Therecoverable amounts of asset groups and sets of asset groups that include goodwill have beendetermined by the higher of the fair value less costs of disposal and the present value of the futurecash flows expected to be derived from the assets. These calculations require estimations andjudgements. When the estimated recoverable amount is marginal, goodwill might suffer impairment.The details of the key assumptions applied by management please refer to Note 4(21).
(iv) Determination of fair value of financial instruments by valuation techniques.
The fair value of a financial instrument that is not traded in an active market is determined byvaluation techniques. Valuation techniques primarily refer to direct comparison method and incomemethod, including reference to the prices used in recent orderly transactions between marketparticipants, reference to the current fair value of other financial instruments that are substantiallyidentical, discounted cash flow analysis, option pricing models, etc. Observable market informationis applied in valuation techniques to the extent possible. When observable market information is notavailable, management will make estimate of significant unobservable information included in thevaluation method. Different valuation techniques or inputs may lead to significant differencesbetween fair value estimates.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Critical accounting estimates and judgements (Cont’d)
(a) Critical accounting estimates and key assumptions (Cont’d)
(v) Recognition of deferred tax assets
Deferred tax assets are recognised for the deductible tax losses and deductible temporarydifferences that can be carried forward to subsequent years to the extent that it is probable thattaxable profit in the future will be available against which the deductible tax losses and deductibletemporary differences can be utilised. Whether to recognise the deferred tax assets arising fromdeductible tax losses and deductible temporary differences largely depends on the judgement ofmanagement on: (i) whether the accumulated deductible tax losses and deductible temporarydifferences in prior years are still effective, and (ii) whether sufficient taxable income that can beused to deduct deductible tax losses and deductible temporary differences can be obtained in thefuture period. Where there is a difference between the situation and the original estimate, suchdifference will affect the Group’s deferred tax assets and income tax expenses in the future period.
(b) Critical judgements in applying the accounting policies
(i) Judgement on significant influence of the Group over investees
The investees over which the Group has significant influence are accounted for under the equitymethod. In judging the significant influence over an investee, management considers based on oneor more of the following circumstances and all facts and circumstances: (1) the shareholding in theinvestee; (2) whether it appoints representative in the Board of Directors or a similar authority of theinvestee; (3) whether it participates in making decisions on financial and operating policies of theinvestee; (4) whether it has significant transaction with the investee; (5) whether it assignsmanagement personnel to the investee; (6) whether it provides key technical materials to theinvestee, and all facts and circumstances are considered.
(ii) Determination of the scope of consolidation
As stated in Note 2(6), the Group consolidates a subsidiary from the date of obtaining actual control,and excludes it out of the scope of consolidation from the date of losing the actual control. Controlexists when the Group has all three of the following elements: (1) the investor possesses powerover the investee; (2) has exposure to variable returns from its involvement with the investee'srelated activities; and (3) the ability to use the power over the investee to affect the returns.
Where variations in relevant facts and circumstances cause a change of these factors, areassessment will be made.
(31) Significant changes in accounting policies
In 2018, the Ministry of Finance released the revised Accounting Standard for Business EnterprisesNo. 21 - Lease (hereinafter referred to “new lease standard”). In 2021, the "Questions and Answerson the Implementation of Leasing Standards" were released. The Group and the Company initiallyadopted the new lease standard on 1 January 2021, the financial statements for the six monthsended 30 June 2021 were prepared in accordance with the above standards and implementationquestions and answers, impacts on the Group and the Company's statements are as follows:
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Significant changes in accounting policies (Cont’d)
(a) Leases
| In accordance with relevant provisions of the new lease standard, the Group and the Company would not reassess the contracts that have already existed prior to the date of initial application. The Group and the Company recognised the cumulative effect of the standard as an adjustment to relevant line items of the financial statements as at 1 January 2021. The comparatives for the six months ended 30 June 2020 were not restated. | ||||
| The contents and reasons of the changes in accounting policies | The line items affected | The amounts affected | ||
| 1 January 2021 | ||||
| Consolidated | Company | |||
| For the operating lease contracts that have already existed prior to the initial application of the new lease standard, the Group and the Company distinguish different transitional methods based on the remaining lease term: If the remaining lease term is more than 12 months, the Group and the Company recognise lease liabilities based on the remaining lease payments and the incremental borrowing rate as at 1 January 2021, and right-of-use assets are measured at an amount equal to lease liabilities, adjusted by the amount of any prepaid lease payments, on a lease-by-lease basis. The Group and the Company applied the practical expedient for leases with a remaining term of 12 months or less and leases of low-value assets existing prior to the initial application of the new lease standard, under which the right-of-use assets and lease liabilities were not recognised. There was no significant impact on the financial statements. | Right-of-use assets | 10,507,587,982.89 | - | |
| Lease liabilities | (6,300,692,884.72) | - | ||
| Current portion of non-current liabilities | (3,663,438,518.83) | - | ||
| Advances to suppliers | (543,456,579.34) | - | ||
| In applying the new lease standard, the Group and the Company reclassified fixed assets held under finance leases from “fixed assets” to “right-of-use assets”, and finance lease payments from “long-term payables” to “lease liabilities”. | Right-of-use assets | 30,336,729.87 | - | |
| Fixed assets | (30,336,729.87) | - | ||
| Long-term payables | 3,497,566.20 | - | ||
| Lease liabilities | (3,497,566.20) | |||
| Current portion of non-current liabilities - long-term payables | 11,634,205.09 | - | ||
| Current portion of non-current liabilities - lease liabilities | (11,634,205.09) | - | ||
| As at 1 January 2021, the Group and the Company adopted the same discount rate for lease contracts with similar characteristics to account for lease liabilities. The weighted average of incremental borrowing rates adopted was 4.18%. | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Significant changes in accounting policies (Cont’d)
(a) Leases(Cont’d)
| As at 1 January 2021, the Group and the Company reconciled the outstanding minimum operating lease payments disclosed under the old lease standard to lease liabilities under the new lease standard as follows: | ||||
| Consolidated | Company | |||
| Future minimum operating lease payments disclosed as at 31 December 2020 | 13,243,403,728.59 | - | ||
| Less: lease contract effective after 1 January 2021(excluding tax amount) | (582,861,341.05) | - | ||
| Value-added tax | (689,897,933.24) | - | ||
| Adjusted future minimum operating lease payments | 11,970,644,454.30 | - | ||
| Present value of the above minimum operating lease payments discounted using the incremental borrowing rate | 10,826,941,779.23 | - | ||
| Add: Finance lease payable as at 31 December 2020 | 15,131,771.29 | - | ||
| Less: Present value of lease payments with a term of 12 months or less | (862,810,375.68) | - | ||
| Lease liabilities recognised as at 1 January 2021 (including current portion of non-current liabilities) | 9,979,263,174.84 | - | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation
The main categories and rates of taxes applicable to the Group are set out below:
| Category | Tax rate | Tax base |
| Enterprise income tax | Note (1) | Taxable income |
| Value-added tax (“VAT”) | Note (2) | Taxable value-added amount (Tax payable is calculated using the taxable sales amount/taxable service income multiplied by the applicable tax rate less deductible VAT input of the current period or taxable turnover amount multiplied by the VAT rate) |
| City maintenance and construction tax | 7%, 5%, 1% | Amount of VAT paid |
| Educational surcharge | 3% | Amount of VAT paid |
| Local educational surcharge | 2% | Amount of VAT paid |
| Customs duty | At applicable tax rate | Customs dutiable value through examination and approval of the Customs |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont’d)
(a) (Cont’d)
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Guangdong S.F. E-commerce Co., Ltd. | 25% | 15% |
| Shenzhen S.F. Supply Chain Co., Ltd. | 25% | 15% |
| Shenzhen S.F. International Logistics Co., Ltd. | 25% | 15% |
| Shenzhen S.F Information Service Technology Co., Ltd. | 25% | 15% |
| Junhe Information Technology (Shenzhen) Co., Ltd. | 25% | 15% |
| SF Sharing Precision Information Technology (Shenzhen) Co., Ltd. | 25% | 15% |
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Xi'an Shunlu Logistics Co., Ltd. | 25% | 15% |
| Chengdu Taishun Logistics Co., Ltd. | 25% | 15% |
| Chongqing Huiyifeng Logistics Co., Ltd. | 25% | 15% |
| S.F. Express (Chongqing) Co., Ltd. | 25% | 15% |
| Guizhou S.F. Express Co., Ltd. | 25% | 15% |
| Yunnan S.F. Express Co., Ltd. | 25% | 15% |
| Sichuan S.F. Express Co., Ltd. | 25% | 15% |
| Ganzhou S.F. Express Co., Ltd. | 25% | 15% |
| Xi'an S.F. Express Co., Ltd. | 25% | 15% |
| Guangxi S.F. Express Co., Ltd. | 25% | 15% |
| S.F. Express (Ningxia) Co., Ltd. | 25% | 15% |
| Inner Mongolia S.F. Express Co., Ltd. | 25% | 15% |
| Xinjiang S.F. Express Co., Ltd. | 25% | 15% |
| Qinghai S.F. Express Co., Ltd. | 25% | 15% |
| Lanzhou S.F. Express Co., Ltd. | 25% | 15% |
| Yunnan Shunhe Freight Co., Ltd. | 25% | 15% |
| Qinghai S.F. Juyi Supply Chain Management Co., Ltd. | 25% | 15% |
| Gansu Shunhefeng Freight Co., Ltd. | 25% | 15% |
| Sichuan Wu Lian Yi Da Technology Co., Ltd. | 25% | 15% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont’d)
(b) (Cont’d)
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Shaanxi S.F. Freight Co., Ltd. | 25% | 15% |
| Sichuan Shunhefeng Freight Co., Ltd. | 25% | 15% |
| Xinjiang Shunhefeng Freight Co., Ltd. | 25% | 15% |
| Chongqing S.F. Zhida Supply Chain Management Co., Ltd. | 25% | 15% |
| Chongqing Xuefeng Refrigerates Logistics Co., Ltd. | 25% | 15% |
| Ningxia S.F. Freight Co., Ltd. | 25% | 15% |
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Tibet S.F. Express Co., Ltd. | 25% | 9% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont’d)
(d) (Cont'd)
Therefore, the portion of annual taxable income of the Group’s subsidiaries not exceeding RMB 1million is recognised at 12.5%, and they are subject to enterprise income tax at the rate of 20%; theportion of annual taxable income of the Group’s subsidiaries exceeding RMB 1 million but notexceeding RMB 3 million is recognised at 50%, and they are subject to enterprise income tax at therate of 20%:
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Ningbo Shuncheng Logistics Co., Ltd. | 25% | 20% |
| Guizhou Shunlu Logistics Co., Ltd. | 25% | 20% |
| Ezhou Shunlu Logistics Co., Ltd. | 25% | 20% |
| Zhengzhou Shuncheng Logistics Co., Ltd. | 25% | 20% |
| Shenzhen S.F. Research Institution Co., Ltd. | 25% | 20% |
| Shanghai Chengbai Technology Co., Ltd. | 25% | 20% |
| Shenyang Fengtai E-Commerce Industrial Park Management Co., Ltd. | 25% | 20% |
| Xuzhou Fengtai Industrial Park Management Co., Ltd. | 25% | 20% |
| Ezhou Fengtai Qisheng Logistics Development Co., Ltd. | 25% | 20% |
| Ezhou Fengyutai Helin Logistics Development Co., Ltd. | 25% | 20% |
| Ganzhou Fengtai Industrial Park Management Co., Ltd. | 25% | 20% |
| Yangzhou Fengyutai Enterprise Management Co., Ltd. | 25% | 20% |
| Shanghai Fengtai Yuanxing Property Management Service Co., Ltd. | 25% | 20% |
| Shenzhen Fengtai E-Commerce Industrial Park Property Service Co., Ltd. | 25% | 20% |
| Taizhou Fengtai E-Commerce Industrial Park Operation and Management Co., Ltd. | 25% | 20% |
| Taixing Fengtai Industrial Park Operation and Management Co., Ltd. | 25% | 20% |
| Wuxi Jietai Enterprise Management Co., Ltd. | 25% | 20% |
| Huai'an Fengtai Enterprise Management Co., Ltd. | 25% | 20% |
| Quanzhou Fengyutai Enterprise Management Co., Ltd. | 25% | 20% |
| Hefei Jietai Enterprise Management Co., Ltd. | 25% | 20% |
| Beijing Fengyutai Operations and Management Co., Ltd. | 25% | 20% |
| Shenzhen Shunfeng Runtai Management Consulting Co., Ltd. | 25% | 20% |
| Guangxi Shunnongfengwei Technology Co., Ltd. | 25% | 20% |
| Caihuilian Technology (Shenzhen) Co., Ltd. | 25% | 20% |
| Dongguan Jiada Express Service Co., Ltd. | 25% | 20% |
| Shenzhen Xuefeng Cold Chain Logistics Co., Ltd. | 25% | 20% |
| Changsha Xueyuan Cold Chain Logistics Co., Ltd. | 25% | 20% |
| Shanghai S.F. Cold Chain Co., Ltd. | 25% | 20% |
| Shanghai Taigenrun Enterprise Management Co., Ltd. | 25% | 20% |
| Dongguan Fengtai Enterprise Management Co., Ltd. | 25% | 20% |
| Beijing Fengjietai Enterprise Management Co., Ltd. | 25% | 20% |
| Dalian Fengtai Industrial Park Operation and Management Co., Ltd. | 25% | 20% |
| Liuzhou Fengyutai Industrial Park Management Co., Ltd. | 25% | 20% |
| Jinan Fengtai Industrial Park Management Co., Ltd. | 25% | 20% |
| Weifang Fengtai Industrial Park Management Co., Ltd. | 25% | 20% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont'd)
(d) (Cont'd)
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Exel Supply Chain (Xiamen) Co., Ltd. | 25% | 20% |
| Shanxi S.F. Zhida Supply Chain Management Co., Ltd. | 25% | 20% |
| Jinjiang Jietai Enterprise Management Co., Ltd. | 25% | 20% |
| Xiamen Fengyutai Industrial Park Management Co., Ltd. | 25% | 20% |
| Nanning Fengyutai Enterprise Management Co., Ltd. | 25% | 20% |
| Changsha Hongjie Industrial Park Operation and Management Co., Ltd. | 25% | 20% |
| Luoyang Fengtai Industrial Park Management Co., Ltd. | 25% | 20% |
| Shenzhen Kuaichijunma Information Technology Co., Ltd. | 25% | 20% |
| Huai'an Fengyutai Enterprise Management Co., Ltd. | 25% | 20% |
| Hebi Fengtai Industrial Park Asset Management Co., Ltd. | 25% | 20% |
| Suzhou Fengtai E-commerce Industrial Park Management Co., Ltd. | 25% | 20% |
| Suzhou Fengtai Cross-border E-commence Industrial Park Service Co., Ltd. | 25% | 20% |
| Beijing Yijie Enterprise Management Co., Ltd. | 25% | 20% |
| Shenzhen S.F. Kuaicha Technology Co., Ltd. | 25% | 20% |
| Shenzhen S.F. International Industry Co., Ltd. | 25% | 20% |
| Yirongcheng Information Service (Wuhan) Co., Ltd. | 25% | 20% |
| Shenzhen Fengwang Holdings Co., Ltd. | 25% | 20% |
| Chongqing Jieyutai Enterprise Management Co., Ltd. | 25% | 20% |
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| S.F. Hengtong Pay Co., Ltd. | 25% | 15% |
| Beijing S.F. Intra-city Technology Co., Ltd. | 25% | 15% |
| SF Technology Co., Ltd. (“SF Technology”) | 25% | 15% |
| Shenzhen Fengyi Technology Co., Ltd. | 25% | 15% |
| Fengtu Technology (Shenzhen) Co., Ltd. | 25% | 15% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont'd)
(f) Pursuant to the Notice on the Policies of Income Tax Preferences for Enterprises in Hainan Free
Trade Port (Cai Shui [2020] No. 31) jointly issued by the Ministry of Finance and the State TaxationAdministration, the Group’s subsidiaries, which are registered in Hainan Free Trade Port, aresubject to enterprise income tax at the preferential rate of 15% from 1 January 2020 to 31 December2024.
| Name of subsidiary | Local statutory tax rate | Preferential tax rate |
| Hainan S.F. Express Co., Ltd. | 25% | 15% |
| Hainan SF Freight Co., Ltd. | 25% | 15% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(2) VAT
According to different businesses, VAT rates applicable to the Group include:
| Business type | Applicable VAT rates |
| Sales of goods and tangible movable property leasing | 13% |
| Transportation service (i) (ii) | 9% |
| Logistics supporting service (i) (ii) (iii) | 6% |
| 3% (applicable to small-scale taxpayers before 1 March 2020) | |
| 1% (applicable to small-scale taxpayers excluding those of Hubei Province from 1 March 2020 to 31 December 2021) 0% (applicable to small-scale taxpayers of Hubei Province from 1 March 2020 to 31 December 2021) | |
| Research and development and technical service | 6% |
| Information technology service | 6% |
| Property leases | 9% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
3 Taxation (Cont'd)
(2) VAT (Cont'd)
(ii) In accordance with the Announcement on Relevant Tax Policies Supporting the Prevention and
Control of the Outbreak of Novel Coronavirus Pneumonia (COVID-19) (Announcement [2020] No. 8)and the Announcement on the Implementation Period of the Tax and Fee Polices Supporting thePrevention and Control of the COVID-19 Outbreak, the Guarantee of Supply During the COVID-19Outbreak and Other Matters (Announcement [2020] No. 28) jointly issued by the Ministry of Financeand the State Taxation Administration on 6 February 2020 and 15 May 2020 respectively, from 1January 2020 to 31 December 2020, taxpayers’ revenue from transportation of key supportingmaterials for epidemic prevention and control, provision of public transportation services, livingservices as well as the express delivery service of essential living materials for residents will beexempted from VAT, city maintenance and construction tax, educational surcharge and localeducational surcharge.
Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration onContinuing the Implementation of Policies of Partial Tax Preferences in Response to COVID-19(Announcement [2021] No. 7) jointly issued by the Ministry of Finance and the State TaxationAdministration on 17 March 2021, the above policies of tax preferences were extended to 31 March2021.
(iii) Pursuant to the Announcement on the Value-Added Tax Policies on Supporting the Resumption of
Work and Business of Individual Industrial and Commercial Households (Announcement [2020] No.
13) and the Announcement on Extending the Applicable Period of the Policies for Reduction andExemption of Value-added Tax on Small-scale Taxpayers (Announcement [2020] No. 24) jointlyissued by the Ministry of Finance and the State Taxation Administration on 28 February 2020 and 30April 2020 respectively, from 1 March to 31 December 2020, taxable sales revenue of small-scaletaxpayers of Hubei Province subject to VAT at the rate of 3% before shall be exempted from VAT;while the prepaid VAT items subject to the prepaid collection rate of 3% before shall be suspendedfor the prepayment of VAT. Taxable sales revenue of small-scale taxpayers in other provinces,autonomous regions and municipalities directly under the central government excluding HubeiProvince subject to VAT at the rate of 3% before shall be subject to VAT at the preferential rate of 1%;while the prepaid VAT items in such regions subject to the prepaid collection rate of 3% before shallbe subject to prepaid VAT at the preferential rate of 1%.
Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration onContinuing the Implementation of Policies of Partial Tax Preferences in Response to COVID-19(Announcement [2021] No. 7) jointly issued by the Ministry of Finance and the State TaxationAdministration on 17 March 2021, the above policies of tax preferences were extended to 31December 2021.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
| 30 June 2021 | 31 December 2020 | ||
| Cash on hand | 297,786.76 | 78,882.36 | |
| Cash at bank | 16,088,871,140.48 | 15,197,052,949.11 | |
| Balances with central bank from Group Finance Company | 723,418,375.73 | 1,066,630,262.57 | |
| Including: Balances with central bank | |||
| - statutory reserve (a) | 657,359,839.02 | 1,001,338,112.80 | |
| Balances with central bank | |||
| - excess reserve (b) | 66,058,536.71 | 65,292,149.77 | |
| Other cash balances | 46,394,025.32 | 126,993,032.50 | |
| Accrued interest | 3,377,993.54 | 27,136,580.65 | |
| 16,862,359,321.83 | 16,417,891,707.19 | ||
| Including: Total overseas deposits | 4,102,467,499.29 | 1,478,584,839.35 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Financial assets held for trading
| 30 June 2021 | 31 December 2020 | ||
| Structural deposits | 10,024,343,370.09 | 6,276,847,839.67 | |
| Others | 75,403.21 | 74,830.02 | |
| 10,024,418,773.30 | 6,276,922,669.69 |
| 30 June 2021 | 31 December 2020 | ||
| Accounts receivable | 18,830,925,667.60 | 17,076,916,966.24 | |
| Less: Provision for bad debts | (227,663,464.71) | (227,852,715.45) | |
| 18,603,262,202.89 | 16,849,064,250.79 |
| 30 June 2021 | 31 December 2020 | ||
| Within 1 year (inclusive) | 18,656,574,171.23 | 16,941,299,144.73 | |
| 1 to 2 years (inclusive) | 140,710,157.16 | 102,274,081.92 | |
| Over 2 years | 33,641,339.21 | 33,343,739.59 | |
| 18,830,925,667.60 | 17,076,916,966.24 |
| 30 June 2021 | |||||
| Amount | Amount of provision for bad debts | % of total balance | |||
| Sum of the five largest accounts receivable | 2,038,315,301.26 | (10,191,576.51) | 10.82% | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable (Cont’d)
(c) Provision for bad debts
For accounts receivable, the Group recognises the lifetime expected credit loss provision.
As at 30 June 2021, accounts receivable for which the related provision for bad debts was providedon the individual basis were analysed as follows:
| Ending balance | Lifetime expected credit loss rate | Provision for bad debts | Reason | |||
| Receivables from related parties | - | - | - | The debtor encountered financial distress, etc. | ||
| Receivables from non-related parties | 133,854,731.39 | 94.20% | (126,095,567.10) | |||
| 133,854,731.39 | (126,095,567.10) |
| Ending balance | Lifetime expected credit loss rate | Provision for bad debts | Reason | |||
| Receivables from related parties | - | - | - | The debtor encountered financial distress, etc. | ||
| Receivables from non-related parties | 130,646,629.92 | 100.00% | (130,646,629.92) | |||
| 130,646,629.92 | (130,646,629.92) |
| 30 June 2021 | |||||
| Ending balance | Provision for bad debts | ||||
| Amount | Lifetime expected credit loss rate | Amount | |||
| Related party grouping | 266,873,884.66 | - | - | ||
| Non-related party grouping | 18,430,197,051.55 | 0.55% | (101,567,897.61) | ||
| 18,697,070,936.21 | (101,567,897.61) | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
As at 31 December 2020, accounts receivable for which the related provision for bad debts wasprovided on the grouping basis were analysed as follows:
| 31 December 2020 | |||||
| Ending balance | Provision for bad debts | ||||
| Amount | Lifetime expected credit loss rate | Amount | |||
| Related party grouping | 292,870,255.13 | - | - | ||
| Non-related party grouping | 16,653,400,081.19 | 0.58% | (97,206,085.53) | ||
| 16,946,270,336.32 | (97,206,085.53) | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Advances to suppliers
(a) The ageing of advances to suppliers was analysed below:
| 30 June 2021 | 31 December 2020 | ||||||
| Ageing | Amount | % of total balance | Amount | % of total balance | |||
| Within 1 year (inclusive) | 2,110,439,208.68 | 91.35% | 2,985,169,213.54 | 93.97% | |||
| 1 to 2 years (inclusive) | 169,014,052.36 | 7.32% | 165,666,219.04 | 5.22% | |||
| Over 2 years | 30,837,613.52 | 1.33% | 25,683,494.41 | 0.81% | |||
| 2,310,290,874.56 | 100.00% | 3,176,518,926.99 | 100.00% | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Advances to suppliers (Cont’d)
(b) As at 30 June 2021, the amount of top five advances to suppliers was analysed as follows:
| 30 June 2021 | |||
| Amount | % of total balance | ||
| Sum of the five largest advances to suppliers | 483,831,344.88 | 20.94% | |
| 30 June 2021 | 31 December 2020 | ||
| Factoring receivables | 124,341,330.79 | 124,396,330.79 | |
| Less: Provision for bad debts | (124,199,599.35) | (124,086,398.51) | |
| 141,731.44 | 309,932.28 |
| 30 June 2021 | |||||||
| Amount | Proportion | Provision for bad debts | Net amount | ||||
| Factoring with recourse | 124,341,330.79 | 100.00% | (124,199,599.35) | 141,731.44 | |||
| 31 December 2020 | |||||||
| Amount | Proportion | Provision for bad debts | Net amount | ||||
| Factoring with recourse | 124,396,330.79 | 100.00% | (124,086,398.51) | 309,932.28 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Factoring receivables (Cont’d)
(b) Overdue factoring receivables are presented by past-due ageing as follows:
| 30 June 2021 | |||||||||
| Within 1 month | 1 to 6 months | 6 months to 1 year | Over 1 year (inclusive) | Total | |||||
| Factoring receivables | - | - | - | 124,341,330.79 | 124,341,330.79 | ||||
| Less: Provision for bad debts | - | - | - | (124,199,599.35) | (124,199,599.35) | ||||
| - | - | - | 141,731.44 | 141,731.44 | |||||
| 31 December 2020 | |||||||||
| Within 1 month | 1 to 6 months | 6 months to 1 year | Over 1 year (inclusive) | Total | |||||
| Factoring receivables | - | - | 476,489.89 | 123,919,840.90 | 124,396,330.79 | ||||
| Less: Provision for bad debts | - | - | (166,557.61) | (123,919,840.90) | (124,086,398.51) | ||||
| - | - | 309,932.28 | - | 309,932.28 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Loans and advances (Cont’d)
(a) Loans and advances by individual and enterprise
| 30 June 2021 | 31 December 2020 | ||
| Personal loans | 73,897.64 | 74,684.98 | |
| Enterprise loans | |||
| Non-related party loans | 90,146,127.26 | 92,660,902.41 | |
| Related party loans (Note 8(4)(c)) | 33,265,058.13 | 63,938,698.94 | |
| Loans and advances - total | 123,485,083.03 | 156,674,286.33 | |
| Less: Provision for loan losses | (85,622,775.47) | (95,756,387.15) | |
| Loans and advances - net | 37,862,307.56 | 60,917,899.18 |
| 30 June 2021 | 31 December 2020 | ||
| Credit loans | 116,584,070.39 | 149,699,752.35 | |
| Guaranteed loans | 6,901,012.64 | 6,974,533.98 | |
| Loans and advances - total | 123,485,083.03 | 156,674,286.33 |
| 30 June 2021 | |||||||||
| Within 3 months | 3 months to 1 year | 1 to 3 years | Over 3 years | Total | |||||
| Credit loans | 2,610,265.83 | 6,133,365.22 | 8,536,912.67 | 548.67 | 17,281,092.39 | ||||
| 31 December 2020 | |||||||||
| Within 3 months | 3 months to 1 year | 1 to 3 years | Over 3 years | Total | |||||
| Credit loans | 1,380,133.04 | 6,634,930.14 | 5,292,970.93 | - | 13,308,034.11 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables
| 30 June 2021 | 31 December 2020 | ||
| Current accounts receivable from related parties (Note 8(4)(d)) | 396,365,227.53 | 325,199,649.05 | |
| Guarantees and deposits | 924,363,829.87 | 844,765,330.84 | |
| Cash on delivery service | 556,083,837.14 | 504,889,025.07 | |
| Airlines subsidy and financial rebate | 220,295,277.50 | 202,548,660.91 | |
| Tax collected by others | 180,737,259.18 | 118,849,744.78 | |
| Receivables from equity transfer and capital reductions | 103,638,527.29 | 207,603,864.00 | |
| Employee borrowings and advances | 68,786,050.15 | 76,333,587.99 | |
| Entrusted loan principal receivable | 27,000,000.00 | 27,000,000.00 | |
| Social insurance premium prepaid | 17,134,496.75 | 18,053,631.18 | |
| Dividends receivable | 14,710,201.92 | - | |
| Others | 230,567,645.74 | 296,137,075.61 | |
| 2,739,682,353.07 | 2,621,380,569.43 | ||
| Less: Provision for bad debts | (118,402,014.40) | (127,816,168.32) | |
| 2,621,280,338.67 | 2,493,564,401.11 |
| 30 June 2021 | 31 December 2020 | ||
| Within 1 year (inclusive) | 2,063,192,055.94 | 2,001,897,653.15 | |
| 1 to 2 years (inclusive) | 262,084,894.05 | 333,174,159.82 | |
| Over 2 years | 414,405,403.08 | 286,308,756.46 | |
| 2,739,682,353.07 | 2,621,380,569.43 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements
(i) The Group measures the loss provision for other receivables based on the expected credit losses for the next twelve months or the entire duration.
| Stage 1 | Stage 3 | |||||||||
| Expected credit losses in the following 12 months (Portfolio) | Lifetime expected credit losses (credit impaired) | Total | ||||||||
| Ending balance | Provision for bad debts | Ending balance | Provision for bad debts | Provision for bad debts | ||||||
| 31 December 2020 | 2,495,057,377.43 | (12,292,976.32) | 126,323,192.00 | (115,523,192.00) | (127,816,168.32) | |||||
| Net increase/provision in the current period | 131,658,711.17 | (3,942,773.61) | - | - | (3,942,773.61) | |||||
| Reversal in the current period | - | - | (10,000,000.00) | 10,000,000.00 | 10,000,000.00 | |||||
| Write-off in the current period | (3,356,927.53) | 3,356,927.53 | - | - | 3,356,927.53 | |||||
| 30 June 2021 | 2,623,359,161.07 | (12,878,822.40) | 116,323,192.00 | (105,523,192.00) | (118,402,014.40) | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d)
As at 30 June 2021 and 31 December 2020, the Group did not have any other receivables at Stage1 for which the related provision for bad debts was provided on the individual basis.
As at 30 June 2021, other receivables at Stage 1 for which the related provision for bad debts wasprovided on the grouping basis were analysed as follows:
| Ending balance | Expected credit loss rate in the following 12 months | Provision for bad debts | Reason | |||
| Provided on the grouping basis: | ||||||
| Related party grouping | 396,365,227.53 | - | - | |||
| Non-related party grouping | 2,226,993,933.54 | 0.58% | (12,878,822.40) | Expected credit loss method | ||
| 2,623,359,161.07 | (12,878,822.40) |
| Ending balance | Expected credit loss rate in the following 12 months | Provision for bad debts | Reason | |||
| Provided on the grouping basis: | ||||||
| Related party grouping | 325,199,649.05 | - | - | |||
| Non-related party grouping | 2,169,857,728.38 | 0.57% | (12,292,976.32) | Expected credit loss method | ||
| 2,495,057,377.43 | (12,292,976.32) |
| Ending balance | Lifetime expected credit losses | Provision for bad debts | Reason | |||
| Provided on the individual basis: | ||||||
| Entrusted loans receivable | 27,000,000.00 | 60.00% | (16,200,000.00) | The debtor encountered financial distress | ||
| Receivables from equity transfer and capital reductions | 82,455,115.00 | 100.00% | (82,455,115.00) | The debtor encountered financial distress | ||
| Others | 6,868,077.00 | 100.00% | (6,868,077.00) | The debtor encountered financial distress, etc. | ||
| 116,323,192.00 | (105,523,192.00) |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d)
As at 31 December 2020, other receivables at Stage 3 for which the related provision for bad debtswas provided on the individual basis were analysed as follows:
| Ending balance | Lifetime expected credit losses | Provision for bad debts | Reason | |||
| Provided on the individual basis: | ||||||
| Entrusted loans receivable | 27,000,000.00 | 60.00% | (16,200,000.00) | The debtor encountered financial distress | ||
| Receivables from equity transfer and capital reductions | 92,455,115.00 | 100.00% | (92,455,115.00) | The debtor encountered financial distress | ||
| Others | 6,868,077.00 | 100.00% | (6,868,077.00) | The debtor encountered financial distress, etc. | ||
| 126,323,192.00 | (115,523,192.00) |
| 30 June 2021 | |||||||
| Nature of business | Ageing | Amount | Amount of provision for bad debts | % of total balance | |||
| Shenzhen Hive Box Technology Co., Ltd. (“Hive Box Technology”) | Agency collection and payment | Within 3 months | 284,560,973.62 | - | 10.39% | ||
| Changsha Municipal People's Government | Airlines subsidy | Within 1 year | 96,197,800.00 | (480,989.00) | 3.51% | ||
| Texas Instruments (Shanghai) Ltd., | Tax collected by others | Within 1 year | 55,075,940.80 | (275,379.70) | 2.01% | ||
| Hangzhou International Airport | Airlines subsidy | Within 1 year | 46,125,000.00 | (230,625.00) | 1.68% | ||
| Wuhan TianHe International Airport | Airlines subsidy | 1 to 2 years | 43,978,614.20 | (219,893.07) | 1.61% | ||
| 525,938,328.62 | (1,206,886.77) | 19.20% | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Inventories
Inventories are summarised by category as follows:
| 30 June 2021 | |||||
| Ending balance | Provision for decline in the value of inventories | Carrying amount | |||
| Raw materials in stock | 357,001,905.46 | - | 357,001,905.46 | ||
| Aviation consumables | 277,619,420.22 | - | 277,619,420.22 | ||
| Finished goods | 180,982,160.77 | (5,240,910.58) | 175,741,250.19 | ||
| Properties under development | 79,095,456.31 | - | 79,095,456.31 | ||
| Costs to fulfil a contract | 61,712,655.73 | - | 61,712,655.73 | ||
| Low-value consumables | 30,439,461.86 | - | 30,439,461.86 | ||
| 986,851,060.35 | (5,240,910.58) | 981,610,149.77 | |||
| 31 December 2020 | |||||
| Ending balance | Provision for decline in the value of inventories | Carrying amount | |||
| Raw materials in stock | 423,928,000.21 | - | 423,928,000.21 | ||
| Aviation consumables | 241,874,487.58 | - | 241,874,487.58 | ||
| Finished goods | 191,150,994.59 | (5,279,698.19) | 185,871,296.40 | ||
| Properties under development | 79,095,456.31 | - | 79,095,456.31 | ||
| Costs to fulfil a contract | 24,229,843.60 | - | 24,229,843.60 | ||
| Low-value consumables | 31,951,510.94 | - | 31,951,510.94 | ||
| 992,230,293.23 | (5,279,698.19) | 986,950,595.04 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Contract assets
| 30 June 2021 | 31 December 2020 | ||
| Contract assets | 377,663,003.26 | 401,040,381.85 | |
| Less: Provision for impairment of contract assets | (1,886,009.35) | (2,005,201.91) | |
| 375,776,993.91 | 399,035,179.94 |
| 30 June 2021 | 31 December 2020 | ||
| Input VAT to be offset | 5,747,150,040.92 | 4,536,908,043.47 | |
| Prepaid enterprise income tax | 112,194,659.04 | 153,562,561.05 | |
| Others | 1,717,050.54 | 2,606,785.14 | |
| 5,861,061,750.50 | 4,693,077,389.66 |
| 30 June 2021 | 31 December 2020 | ||
| Interest-free loans to employees receivable (a) | 245,953,714.26 | 377,265,003.74 | |
| Deposit for house purchase | 277,904,430.00 | 277,904,430.00 | |
| Finance lease receivables (b) | 459,054,509.98 | 122,344,982.71 | |
| Less: Current portion of long-term receivables | (253,525,731.69) | (156,240,777.09) | |
| Provision for bad debts | (18,237,703.80) | (14,169,999.15) | |
| 711,149,218.75 | 607,103,640.21 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Long-term receivables (Cont’d)
(a) Interest-free loans to employees receivable
| 30 June 2021 | 31 December 2020 | ||
| Interest-free loans to employees receivable | 266,224,243.05 | 406,677,491.48 | |
| Less: Prepaid discount interest | (20,270,528.79) | (29,412,487.74) | |
| Amortised cost of interest-free loans to employees | 245,953,714.26 | 377,265,003.74 | |
| Less: Current portion of interest-free loans to employees | (103,902,047.92) | (124,107,464.52) | |
| Provision for bad debts | (1,331,121.22) | (2,033,387.46) | |
| 140,720,545.12 | 251,124,151.76 |
| 30 June 2021 | 31 December 2020 | ||
| Finance lease receivables | 513,647,094.79 | 127,805,355.10 | |
| Less: Unrealised finance gains | (54,592,584.81) | (5,460,372.39) | |
| Amortised cost of finance lease receivables | 459,054,509.98 | 122,344,982.71 | |
| Less: Current portion of finance lease receivables | (149,623,683.77) | (32,133,312.57) | |
| Provision for bad debts | (16,906,582.58) | (12,136,611.69) | |
| 292,524,243.63 | 78,075,058.45 |
| 30 June 2021 | 31 December 2020 | ||
| Within 1 year(inclusive) | 198,287,050.28 | 44,270,424.29 | |
| 1 to 2 years(inclusive) | 160,551,094.85 | 37,173,061.64 | |
| 2 to 3 years(inclusive) | 119,928,107.22 | 33,313,876.98 | |
| Over 3 years | 34,880,842.44 | 13,047,992.19 | |
| 513,647,094.79 | 127,805,355.10 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments
| 30 June 2021 | 31 December 2020 | ||
| Cost: | |||
| - Joint ventures | 2,526,594,898.69 | 2,457,553,213.43 | |
| - Associates | 2,674,861,868.99 | 1,337,754,074.20 | |
| 5,201,456,767.68 | 3,795,307,287.63 | ||
| Less: Provision for impairment of long-term equity investments | |||
| - Joint ventures | - | (22,587,342.22) | |
| - Associates | (125,488,667.51) | (125,488,667.51) | |
| (125,488,667.51) | (148,076,009.73) | ||
| Joint ventures (a) | 2,526,594,898.69 | 2,434,965,871.21 | |
| Associates (b) | 2,549,373,201.48 | 1,212,265,406.69 | |
| 5,075,968,100.17 | 3,647,231,277.90 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments (Cont’d)
(a) Joint ventures
| Movements in the current period | |||||||||||||||||
| Carrying amount as at 31 December 2020 | Increase in investments | Decrease in investments | Share of net profit/(loss) under equity method | Exchange differences on translation of foreign currency financial statements | Other changes in equity | Provision for impairment loss | Carrying amount as at 30 June 2021 | Balance of provision for impairment loss at the end of the period | |||||||||
| Hubei International Logistics Airport Co., Ltd. | 1,373,300,976.99 | - | - | (7,980,852.27) | - | - | - | 1,365,320,124.72 | - | ||||||||
| Gem-year Logistics Co., Ltd. | 490,661,575.24 | - | - | 3,552,133.79 | - | 1,742,881.88 | - | 495,956,590.91 | - | ||||||||
| ZBHA Group Co., Ltd. (“ZBHA”) | 230,429,226.11 | - | - | 387,713.90 | - | - | - | 230,816,940.01 | - | ||||||||
| Jinfeng Borun (Xiamen) Equity Investment Partnership (Limited Partnership) | 149,354,041.48 | - | - | (2,065,706.76) | - | - | - | 147,288,334.72 | - | ||||||||
| CC SF China Logistics Properties Investment Fund,L.P. | - | 98,984,603.71 | - | - | (901,298.67) | - | - | 98,083,305.04 | - | ||||||||
| Beijing Wulian Shuntong Technology Co., Ltd. (“Wulian Shuntong”) | 89,571,516.18 | - | - | (2,568,511.31) | - | - | - | 87,003,004.87 | - | ||||||||
| CR-SF International Express Co., Ltd. | 29,754,253.24 | - | - | 2,875,647.08 | - | - | - | 32,629,900.32 | - | ||||||||
| POST11O? | 22,441,110.64 | - | - | (206,899.64) | (193,947.07) | - | - | 22,040,263.93 | - | ||||||||
| Shenzhen Fengsu Technology Co., Ltd. (“Fengsu Technology”) | 22,904,934.74 | - | - | (1,738,060.82) | - | 20,620.13 | - | 21,187,494.05 | - | ||||||||
| Others | 26,548,236.59 | 3,055,340.31 | (1,744,744.89) | (2,844,870.43) | (117,323.80) | 1,372,302.34 | - | 26,268,940.12 | - | ||||||||
| 2,434,965,871.21 | 102,039,944.02 | (1,744,744.89) | (10,589,406.46) | (1,212,569.54) | 3,135,804.35 | - | 2,526,594,898.69 | - | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments (Cont’d)
(b) Associates
| Movements in the current period | |||||||||||||||||||||
| Carrying amount as at 31 December 2020 | Increase in investments | Decrease in investments | Share of net profit/(loss) under equity method | Exchange differences on translation of foreign currency financial statement | Share of other comprehensive income | Other changes in equity (i) | Cash dividends or profits declared | Provision for impairment loss | Carrying amount as at 30 June 2021 | Balance of provision for impairment loss at the end of the period | |||||||||||
| Amass Freight International Co. Ltd. | 208,700,000.00 | - | - | 9,748,827.36 | - | - | - | - | - | 218,448,827.36 | - | ||||||||||
| Zhejiang Galaxis Technology Co., Ltd. | 205,935,032.24 | - | - | (6,338,288.19) | - | - | (10,391,548.29) | - | - | 189,205,195.76 | - | ||||||||||
| Zhuhai Biyao Industrial Technology Co., Ltd. | 112,224,684.70 | - | - | 7,653,302.28 | - | - | - | - | - | 119,877,986.98 | (8,031,343.62) | ||||||||||
| Jiangsu Chiata Foton Co., Ltd. | 102,710,272.39 | - | - | (771,685.34) | - | - | - | - | - | 101,938,587.05 | - | ||||||||||
| Beijing Dazhangfang Network Technology Co., Ltd. (“Beijing Dazhangfang”) | 99,905,867.84 | - | - | (3,994,595.43) | - | - | - | - | - | 95,911,272.41 | - | ||||||||||
| Dunho Weiheng (Zhuhai) Supply Chain Management Co., Ltd. | 62,355,846.29 | 27,546,428.26 | - | (545,592.39) | - | - | - | - | - | 89,356,682.16 | - | ||||||||||
| KENGIC Intelligent Technology Co., Ltd. (“KENGIC Intelligent”) | 76,206,042.27 | - | - | (2,038,027.15) | - | - | - | - | - | 74,168,015.12 | - | ||||||||||
| Ezhou China Communications SF Airport Industrial Park Investment Development Co., Ltd. | - | 72,000,000.00 | - | 8,835.77 | - | - | - | - | - | 72,008,835.77 | - | ||||||||||
| Feng Wang Investment Co., Ltd. | 47,813,293.06 | - | - | 55,984.34 | - | (88,282.28) | - | - | - | 47,780,995.12 | - | ||||||||||
| PT TRI ADI BERSAMA | 14,335,506.95 | 28,702,700.95 | - | (305,086.45) | (509,974.25) | - | - | - | - | 42,223,147.20 | - | ||||||||||
| Langxing UAV System Co., Ltd. | 39,286,463.21 | - | - | (1,316,411.84) | - | - | - | - | - | 37,970,051.37 | - | ||||||||||
| Beijing GreenValley Technology Limited | 29,927,891.81 | - | - | 326,127.13 | - | - | - | - | - | 30,254,018.94 | - | ||||||||||
| Shenzhen Canbeidou Supply Chain Management Co., Ltd (“Canbeidou Supply Chain”) | 31,028,681.02 | - | - | (1,553,145.76) | - | - | - | - | - | 29,475,535.26 | - | ||||||||||
| SCS Logistics Co., Ltd. | 29,852,398.77 | - | - | 1,699,585.92 | - | - | - | (2,250,000.00) | - | 29,301,984.69 | - | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments (Cont’d)
(b) Associates (Cont’d)
| Movements in the current period | ||||||||||||||||||||
| Carrying amount as at 31 December 2020 | Increase in investments | Decrease in investments | Share of net profit/(loss) under equity method | Exchange differences on translation of foreign currency financial statements | Share of other comprehensive income | Other changes in equity (i) | Cash dividends or profits declared | Provision for impairment loss | Carrying amount as at 30 June 2021 | Balance of provision for impairment loss at the end of the period | ||||||||||
| Shenzhen Zhi Hang UAV Co., Ltd. | 23,791,818.93 | - | - | 617,584.08 | - | - | - | - | - | 24,409,403.01 | - | |||||||||
| KOSPA | 22,734,343.41 | - | - | 1,361,271.59 | (231,267.30) | - | - | - | - | 23,864,347.70 | - | |||||||||
| Aerospace Times Feipeng Co., Ltd. | - | 20,000,000.00 | - | - | - | - | - | - | - | 20,000,000.00 | - | |||||||||
| Shenzhen Bai Mi Life Co., Ltd. | - | - | - | - | - | - | - | - | - | - | (93,276,284.55) | |||||||||
| Others(ii) | 105,457,263.80 | 1,201,245,788.43 | - | (2,770,527.73) | (2,154,232.82) | - | 1,400,023.90 | - | - | 1,303,178,315.58 | (24,181,039.34) | |||||||||
| 1,212,265,406.69 | 1,349,494,917.64 | - | 1,838,158.19 | (2,895,474.37) | (88,282.28) | (8,991,524.39) | (2,250,000.00) | - | 2,549,373,201.48 | (125,488,667.51) | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Investments in other equity instruments
| 30 June 2021 | 31 December 2020 | ||
| Equity of listed companies | 395,947,836.92 | 891,158,779.32 | |
| Equity of unlisted companies | 4,059,207,411.86 | 4,136,330,274.98 | |
| 4,455,155,248.78 | 5,027,489,054.30 |
| Item | Dividend income recognised in the current period | Accumulated gains or losses recognised in other comprehensive income | |
| Equity of listed companies | 14,620,117.03 | 93,615,739.69 | |
| Equity of unlisted companies | - | 900,040,707.17 | |
| 14,620,117.03 | 993,656,446.86 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Investments in other equity instruments (Cont’d)
| 31 December 2020 | Increase in the current period | Changes in fair value in the current period | Decrease in the current period | Exchange differences on translation of foreign currency financial statements | 30 June 2021 | ||||||
| Equity of listed companies | 891,158,779.32 | 28,410,932.19 | (84,217,558.22) | (432,850,846.22) | (6,553,470.15) | 395,947,836.92 | |||||
| Equity of unlisted companies | 4,136,330,274.98 | - | 2,885,035.25 | (40,000,000.00) | (40,007,898.37) | 4,059,207,411.86 | |||||
| 5,027,489,054.30 | 28,410,932.19 | (81,332,522.97) | (472,850,846.22) | (46,561,368.52) | 4,455,155,248.78 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Other non-current financial assets
| 30 June 2021 | 31 December 2020 | ||
| Financial assets held for trading (over 1 year): | |||
| Industry fund investments | 456,428,950.23 | 441,134,721.34 | |
| Special scheme equity-class securities | 390,391,319.74 | 390,391,319.74 | |
| 846,820,269.97 | 831,526,041.08 |
| Buildings | Land use rights | Total | |||
| Cost | |||||
| 31 December 2020 | 1,631,375,714.19 | 816,419,693.45 | 2,447,795,407.64 | ||
| Transfer from self-used assets in the current period (Note 4(16), (17), (19)) | 529,080,683.85 | 165,321,128.59 | 694,401,812.44 | ||
| Transfer to self-used assets in the current period (Note 4(16), (19)) | (255,402,501.06) | (63,363,865.21) | (318,766,366.27) | ||
| Decrease due to disposal of subsidiaries in the current period | (603,560,073.87) | (663,772,579.41) | (1,267,332,653.28) | ||
| Effect of translation of foreign currency financial statements | (3,600,780.87) | (5,352,453.85) | (8,953,234.72) | ||
| 30 June 2021 | 1,297,893,042.24 | 249,251,923.57 | 1,547,144,965.81 | ||
| Accumulated depreciation | |||||
| 31 December 2020 | 139,991,563.69 | 88,399,022.60 | 228,390,586.29 | ||
| Transfer from self-used assets in the current period (Note 4(16), (19)) | 9,395,260.82 | 12,564,444.11 | 21,959,704.93 | ||
| Provision in the current period | 13,489,863.41 | 6,774,325.08 | 20,264,188.49 | ||
| Transfer to self-used assets in the current period (Note 4(16), (19)) | (3,734,619.61) | (5,035,489.93) | (8,770,109.54) | ||
| Decrease due to disposal of subsidiaries in the current period | (62,877,836.02) | (81,228,890.86) | (144,106,726.88) | ||
| Effect of translation of foreign currency financial statements | (486,789.45) | (621,256.08) | (1,108,045.53) | ||
| 30 June 2021 | 95,777,442.84 | 20,852,154.92 | 116,629,597.76 | ||
| Carrying amount | |||||
| 30 June 2021 | 1,202,115,599.40 | 228,399,768.65 | 1,430,515,368.05 | ||
| 31 December 2020 | 1,491,384,150.50 | 728,020,670.85 | 2,219,404,821.35 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Fixed assets
| Buildings | Motor vehicles | Computers and electronic equipment | Aircraft, aircraft engines, rotables and high-value maintenance tools | Machinery and equipment | Office equipment and other equipment | Total | |||||||
| Cost | |||||||||||||
| 31 December 2020 | 7,735,999,172.49 | 5,475,630,337.92 | 3,615,717,089.84 | 9,171,985,407.03 | 4,456,899,080.81 | 6,171,336,693.26 | 36,627,567,781.35 | ||||||
| Transfer from construction in progress (Note 4(17)) | 694,395,897.16 | 134,846,402.17 | 17,196,629.50 | 1,061,677,066.36 | 169,228,440.20 | 386,337,353.05 | 2,463,681,788.44 | ||||||
| Transfer from investment properties in the current period (Note 4(15)) | 255,402,501.06 | - | - | - | - | - | 255,402,501.06 | ||||||
| Increase in the current period | 989,480.55 | 733,424,472.79 | 378,016,809.80 | 271,138,650.32 | 156,298,487.73 | 139,383,055.29 | 1,679,250,956.48 | ||||||
| Transfer to investment properties in the current period (Note 4(15)) | (261,676,230.28) | - | - | - | - | - | (261,676,230.28) | ||||||
| Decrease in the current period | - | (384,423,511.52) | (144,581,267.49) | (68,126,800.60) | (75,976,492.41) | (192,467,928.75) | (865,576,000.77) | ||||||
| Decrease due to disposal of subsidiaries in the current period | (1,662,921,944.91) | - | - | - | (1,050,000.00) | (572,388.31) | (1,664,544,333.22) | ||||||
| Reclassification in the current period | - | 2,214,084.02 | (3,595,016.83) | - | (109,048,535.88) | 110,429,468.69 | - | ||||||
| Effect of translation of foreign currency financial statements | (11,929,519.11) | (2,518,876.36) | (921,286.39) | - | (3,081,302.89) | (444,117.69) | (18,895,102.44) | ||||||
| 30 June 2021 | 6,750,259,356.96 | 5,959,172,909.02 | 3,861,832,958.43 | 10,436,674,323.11 | 4,593,269,677.56 | 6,614,002,135.54 | 38,215,211,360.62 | ||||||
| Accumulated depreciation | |||||||||||||
| 31 December 2020 | 870,501,031.04 | 3,680,986,257.91 | 2,331,366,472.96 | 3,504,465,356.19 | 1,178,124,698.33 | 2,705,472,210.32 | 14,270,916,026.75 | ||||||
| Transfer from investment properties in the current period (Note 4(15)) | 3,734,619.61 | - | - | - | - | - | 3,734,619.61 | ||||||
| Provision in the current period | 123,108,374.64 | 446,143,881.09 | 358,310,588.69 | 506,595,037.49 | 203,314,608.41 | 494,370,449.93 | 2,131,842,940.25 | ||||||
| Transfer to investment properties in the current period (Note 4(15)) | (9,395,260.82) | - | - | - | - | - | (9,395,260.82) | ||||||
| Decrease in the current period | - | (358,367,165.05) | (123,315,398.61) | (63,722,727.70) | (37,462,860.68) | (152,931,738.87) | (735,799,890.91) | ||||||
| Decrease due to disposal of subsidiaries in the current period | (180,734,291.43) | - | - | - | (224,437.50) | (246,527.60) | (181,205,256.53) | ||||||
| Reclassification in the current period | - | 2,012,907.77 | 534,090.75 | - | (77,550,726.14) | 75,003,727.62 | - | ||||||
| Effect of translation of foreign currency financial statements | (1,533,169.53) | (1,637,215.35) | (666,733.15) | - | (1,145,876.95) | (287,437.59) | (5,270,432.57) | ||||||
| 30 June 2021 | 805,681,303.51 | 3,769,138,666.37 | 2,566,229,020.64 | 3,947,337,665.98 | 1,265,055,405.47 | 3,121,380,683.81 | 15,474,822,745.78 | ||||||
| Carrying amount | |||||||||||||
| 30 June 2021 | 5,944,578,053.45 | 2,190,034,242.65 | 1,295,603,937.79 | 6,489,336,657.13 | 3,328,214,272.09 | 3,492,621,451.73 | 22,740,388,614.84 | ||||||
| 31 December 2020 | 6,865,498,141.45 | 1,794,644,080.01 | 1,284,350,616.88 | 5,667,520,050.84 | 3,278,774,382.48 | 3,465,864,482.94 | 22,356,651,754.60 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Fixed assets (Cont’d)
(i) For the sixth months ended 30 June 2021, the amount of depreciation expenses charged to cost of
revenue, selling and distribution expenses, general and administrative expenses and research anddevelopment expenses was RMB 2,123,877,059.83 (for the sixth months ended 30 June 2020:
RMB 1,730,365,263.08).
(ii) As at 30 June 2021, fixed assets with carrying amount of RMB 138,131,064.70 (cost of RMB
141,376,925.34) (31 December 2020: carrying amount of RMB 181,287,156.79 and cost of RMB185,653,990.63) were pledged as collateral for long-term borrowings (Note 4(34)(b)).
(iii) Fixed assets with pending certificates of ownership
| 30 June 2021 | |||||||
| Cost | Accumulated depreciation | Provision for impairment loss | Carrying amount | ||||
| Buildings | 1,477,915,511.67 | (52,218,686.24) | - | 1,425,696,825.43 | |||
| 31 December 2020 | |||||||
| Cost | Accumulated depreciation | Provision for impairment loss | Carrying amount | ||||
| Buildings | 1,782,960,049.03 | (96,133,702.99) | - | 1,686,826,346.04 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Fixed assets (Cont’d)
(v) Disposal of aircraft engines, rotables and high-value maintenance tools
| For the six months ended 30 June 2021 | |||||||||
| Reason for disposal | Cost | Accumulated depreciation | Provision for impairment loss | Carrying amount | |||||
| Aircraft rotables | Scrapped | 487,744.11 | (164,146.66) | - | 323,597.45 | ||||
| Aircraft rotables | Sold | 5,372,551.58 | (437,512.06) | - | 4,935,039.52 | ||||
| High-value maintenance tools | Scrapped | 25,249.88 | (18,151.70) | - | 7,098.18 | ||||
| 5,885,545.57 | (619,810.42) | - | 5,265,735.15 | ||||||
| For the six months ended 30 June 2020 | |||||||||
| Reason for disposal | Cost | Accumulated depreciation | Provision for impairment loss | Carrying amount | |||||
| Aircraft rotables | Scrapped | 6,029,229.78 | (2,345,065.20) | - | 3,684,164.58 | ||||
| Aircraft rotables | Sold | 49,595.58 | (9,868.98) | - | 39,726.60 | ||||
| High-value maintenance tools | Scrapped | 34,126.62 | (22,908.94) | - | 11,217.68 | ||||
| 6,112,951.98 | (2,377,843.12) | - | 3,735,108.86 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Construction in progress
| (13) | 30 June 2021 | 31 December 2020 | |
| Relocation and Renovation Project of Distribution Hubs | 887,871,189.85 | 614,476,732.51 | |
| Aircraft import and refit | 625,092,733.31 | 848,657,662.30 | |
| Qianhai S.F. Headquarters Office | 560,107,758.43 | 724,189,959.49 | |
| Wuhan E-Commerce Industrial Park Project | 478,216,875.40 | 522,065,007.56 | |
| Xi’an E-Commerce Industrial Park Project | 434,538,130.84 | 304,437,146.68 | |
| Chengdu Fengtai E-Commerce Industrial Park Project | 373,609,706.14 | 256,888,014.72 | |
| Tianjin Fengtai E-Commerce Industrial Park Project | 332,741,382.40 | 268,165,252.88 | |
| Guiyang Fengtai E-Commerce Industrial Park Project | 292,992,916.74 | 194,125,117.04 | |
| Nanjing Qixia Project | 186,494,079.59 | - | |
| Hangzhou Beicheng Intelligent Park | 181,259,923.88 | 76,320,340.29 | |
| Ganzhou Fengtai Industrial Park Project | 161,141,417.19 | 77,904,906.75 | |
| Haikou Fengtai Industrial Park Project | 149,802,794.90 | 77,924,993.11 | |
| Jiaxing Xiuzhou Phase I | 139,723,728.06 | 74,696,103.44 | |
| Nanchang Fengtai Industrial Park Project | 120,793,352.16 | 61,065,523.07 | |
| Shanghai Headquarters & Intelligent Logistics Technology Industrial Park Project | 118,061,342.93 | 43,260,355.40 | |
| Suzhou Wujiang Project | 92,561,120.25 | 1,161,597.16 | |
| Intelligent Sorting Hefei Base Project | 88,596,325.52 | 30,750,245.51 | |
| Nanning S.F. Innovation Industrial Base | 87,183,129.01 | 19,686,338.93 | |
| Guangzhou Airport Base Hub Project | 69,020,753.19 | 16,280,942.15 | |
| Xiamen S.F. Innovation Industrial Park | 68,805,962.77 | - | |
| Changchun E-Commerce Industrial Park Project | 66,530,314.06 | 66,553,674.01 | |
| S.F. Ma’anshan Innovation Industrial Park Project | 56,676,373.15 | 6,480,824.53 | |
| Tibet Lhasa E-Commerce Industrial Park Project | 40,949,714.68 | 40,949,714.68 | |
| Shanghai Xinbang Industrial Park | 26,934,398.00 | - | |
| Air station relocation and decoration project | 26,584,741.28 | - | |
| Dongguan Daojiao Project | 25,782,534.69 | - | |
| Xinjiang Smart Industrial Park Project | 15,433,855.23 | 5,391,057.98 | |
| Songshan Lake CIMC Smart Valley Decoration Project | 12,593,987.30 | - | |
| Others | 801,849,341.53 | 1,048,422,951.87 | |
| 6,521,949,882.48 | 5,379,854,462.06 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Construction in progress (Cont’d)
| Name of projects | Budget | 31 December 2020 | Increase in the current period | Transfer to other long-term assets in the current period (iv) | Decrease due to disposal of subsidiries | 30 June 2021 | % of project investment in budget (iii) | Progress of project | Accumulative amount of capitalised borrowing costs | Including: Borrowing costs capitalised in the current period (Note 4(53)) | Capitalisation rate | Source of funds | ||||||
| Qianhai S.F. Headquarters Office | 869,742,437.76 | 724,189,959.49 | 138,444,894.87 | (302,527,095.93) | - | 560,107,758.43 | 99.18% | 99.18% | 84,879,220.97 | 6,593,009.54 | 4.76% | Self-owned funds and loans from financial institutions | ||||||
| Relocation and Renovation Project of Distribution Hubs | 5,016,633,039.09 | 614,476,732.51 | 859,557,339.90 | (586,162,882.56) | - | 887,871,189.85 | 75.45% | 75.45% | - | - | - | Self-owned funds | ||||||
| Aircraft import and refit | 3,274,420,480.76 | 848,657,662.30 | 844,806,627.35 | (1,068,371,556.34) | - | 625,092,733.31 | 44.46% | 44.46% | - | - | - | Self-owned funds | ||||||
| Wuhan E-Commerce Industrial Park Project | 834,029,523.00 | 522,065,007.56 | 85,436,427.33 | (129,284,559.49) | - | 478,216,875.40 | 78.18% | 78.18% | - | - | - | Self-owned funds | ||||||
| Xi’an E-Commerce Industrial Park Project | 637,626,719.96 | 304,437,146.68 | 130,100,984.16 | - | - | 434,538,130.84 | 68.15% | 68.15% | - | - | - | Self-owned funds | ||||||
| Chengdu Fengtai E-Commerce Industrial Park Project | 485,234,196.67 | 256,888,014.72 | 116,721,691.42 | - | - | 373,609,706.14 | 77.00% | 77.00% | - | - | - | Self-owned funds | ||||||
| Tianjin Fengtai E-Commerce Industrial Park Project | 704,052,188.06 | 268,165,252.88 | 64,576,129.52 | - | - | 332,741,382.40 | 99.26% | 99.26% | - | - | - | Self-owned funds | ||||||
| Guiyang Fengtai E-Commerce Industrial Park Project | 364,922,527.78 | 194,125,117.04 | 98,867,799.70 | - | - | 292,992,916.74 | 80.29% | 80.29% | - | - | - | Self-owned funds | ||||||
| Nanjing Qixia Project | 256,182,505.86 | - | 186,494,079.59 | - | - | 186,494,079.59 | 72.80% | 72.80% | - | - | - | Self-owned funds | ||||||
| Hangzhou Beicheng Intelligent Park | 395,196,165.02 | 76,320,340.29 | 104,939,583.59 | - | - | 181,259,923.88 | 45.87% | 45.87% | - | - | - | Self-owned funds | ||||||
| Ganzhou Fengtai Industrial Park Project | 229,954,633.88 | 77,904,906.75 | 83,236,510.44 | - | - | 161,141,417.19 | 70.08% | 70.08% | - | - | - | Self-owned funds | ||||||
| Haikou Fengtai Industrial Park Project | 282,670,730.15 | 77,924,993.11 | 71,877,801.79 | - | - | 149,802,794.90 | 50.89% | 50.89% | - | - | - | Self-owned funds | ||||||
| Jiaxing Xiuzhou Phase I | 262,502,312.68 | 74,696,103.44 | 65,027,624.62 | - | - | 139,723,728.06 | 53.23% | 53.23% | - | - | - | Self-owned funds | ||||||
| Nanchang Fengtai Industrial Park Project | 259,333,306.42 | 61,065,523.07 | 59,727,829.09 | - | - | 120,793,352.16 | 46.05% | 46.05% | - | - | - | Self-owned funds | ||||||
| Shanghai Headquarters & Intelligent Logistics Technology Industrial Park Project | 502,468,251.85 | 43,260,355.40 | 74,800,987.53 | - | - | 118,061,342.93 | 23.50% | 23.50% | - | - | - | Self-owned funds | ||||||
| Suzhou Wujiang Project | 687,294,397.62 | 1,161,597.16 | 91,399,523.09 | - | - | 92,561,120.25 | 13.30% | 13.30% | - | - | - | Self-owned funds | ||||||
| Intelligent Sorting Hefei Base Project | 591,016,653.07 | 30,750,245.51 | 57,846,080.01 | - | - | 88,596,325.52 | 78.65% | 78.65% | - | - | - | Self-owned funds | ||||||
| Nanning S.F. Innovation Industrial Base | 114,367,745.83 | 19,686,338.93 | 67,496,790.08 | - | - | 87,183,129.01 | 76.23% | 76.23% | - | - | - | Self-owned funds | ||||||
| Guangzhou Airport Base Hub Project | 229,896,382.02 | 16,280,942.15 | 52,739,811.04 | - | - | 69,020,753.19 | 22.94% | 22.94% | - | - | - | Self-owned funds | ||||||
| Xiamen S.F. Innovation Industrial Park | 193,230,600.00 | - | 68,805,962.77 | - | - | 68,805,962.77 | 35.61% | 35.61% | - | - | - | Self-owned funds | ||||||
| Changchun E-Commerce Industrial Park Project | 422,481,060.32 | 66,553,674.02 | 21,205,582.08 | (21,228,942.04) | - | 66,530,314.06 | 56.69% | 56.69% | - | - | - | Self-owned funds | ||||||
| S.F. Ma’anshan Innovation Industrial Park Project | 336,007,556.62 | 6,480,824.53 | 50,195,548.62 | - | - | 56,676,373.15 | 55.17% | 55.17% | - | - | - | Self-owned funds | ||||||
| Tibet Lhasa E-Commerce Industrial Park Project | 181,156,907.49 | 40,949,714.68 | - | - | - | 40,949,714.68 | 20.16% | 20.16% | - | - | - | Self-owned funds | ||||||
| Shanghai Xinbang Industrial Park | 570,948,365.03 | - | 26,934,398.00 | - | - | 26,934,398.00 | 4.72% | 4.72% | - | - | - | Self-owned funds |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Construction in progress (Cont’d)
| Name of projects | Budget | 31 December 2020 | Increase in the current period | Transfer to other long-term assets in the current period (iv) | Decrease due to disposal of subsidiries | 30 June 2021 | % of project investment in budget (iii) | Progress of project | Accumulative amount of capitalised borrowing costs | Including: Borrowing costs capitalised in the current period (Note 4(53)) | Capitalisation rate | Source of funds | ||||||||
| Air station relocation and decoration project | 84,048,959.58 | - | 43,508,775.26 | (16,924,033.98) | - | 26,584,741.28 | 51.77% | 51.77% | - | - | - | Self-owned funds | ||||||||
| Dongguan Daojiao Project | 526,881,417.64 | - | 25,782,534.69 | - | - | 25,782,534.69 | 4.89% | 4.89% | - | - | - | Self-owned funds | ||||||||
| Xinjiang Smart Industrial Park Project | 132,028,852.33 | 5,391,057.98 | 10,042,797.25 | - | - | 15,433,855.23 | 7.61% | 7.61% | - | - | - | Self-owned funds | ||||||||
| Songshan Lake CIMC Smart Valley Decoration Project | 44,496,521.79 | - | 12,593,987.30 | - | - | 12,593,987.30 | 28.30% | 28.30% | - | - | - | Self-owned funds | ||||||||
| Others | 1,048,422,951.86 | 1,018,670,805.55 | (1,009,397,854.77) | (255,846,561.11) | 801,849,341.53 | - | - | - | Self-owned funds | |||||||||||
| 5,379,854,462.06 | 4,531,838,906.64 | (3,133,896,925.11) | (255,846,561.11) | 6,521,949,882.48 | 84,879,220.97 | 6,593,009.54 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Right-of-use assets
| Buildings | Machinery and equipment | Motor vehicles | Computers and electronic equipment | Total | ||||||
| Cost | ||||||||||
| 1 January 2021 | 10,521,029,092.39 | 6,541,430.29 | 10,221,403.01 | 132,787.08 | 10,537,924,712.77 | |||||
| Increase in the current period | 5,827,634,717.51 | - | 122,592.67 | - | 5,827,757,310.18 | |||||
| Decrease in the current period | (815,955,923.74) | - | (360,305.24) | - | (816,316,228.98) | |||||
| 30 June 2021 | 15,532,707,886.16 | 6,541,430.29 | 9,983,690.44 | 132,787.08 | 15,549,365,793.97 | |||||
| Accumulated depreciation | ||||||||||
| 1 January 2021 | - | - | - | - | - | |||||
| Provision in the current period | 2,323,228,052.74 | 1,502,977.18 | 1,341,899.56 | 20,651.71 | 2,326,093,581.19 | |||||
| Decrease in the current period | (151,466,329.63) | - | - | - | (151,466,329.63) | |||||
| 30 June 2021 | 2,171,761,723.11 | 1,502,977.18 | 1,341,899.56 | 20,651.71 | 2,174,627,251.56 | |||||
| Carrying amount | ||||||||||
| 30 June 2021 | 13,360,946,163.05 | 5,038,453.11 | 8,641,790.88 | 112,135.37 | 13,374,738,542.41 | |||||
| 1 January 2021 | 10,521,029,092.39 | 6,541,430.29 | 10,221,403.01 | 132,787.08 | 10,537,924,712.77 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets
| Land use rights | Purchased software | Self-developed software | Patents | Trademark rights | Customer relationships | Others | Total | ||||||||
| Cost | |||||||||||||||
| 31 December 2020 | 6,077,755,513.52 | 574,252,786.12 | 3,980,087,756.52 | 19,100,671.14 | 224,020,707.27 | 2,590,204,785.78 | 85,259,018.32 | 13,550,681,238.67 | |||||||
| Transfer from investment properties in the current period (Note 4(15)) | 63,363,865.21 | - | - | - | - | - | - | 63,363,865.21 | |||||||
| Transfer from capitalised development expenditures in the current period (Note 4(20)) | - | - | 639,058,299.45 | - | - | - | - | 639,058,299.45 | |||||||
| Addition in the current period | 1,384,923,126.68 | 59,835,296.03 | - | 2,624,080.40 | 2,051,276.98 | - | 37,435,845.13 | 1,486,869,625.22 | |||||||
| Transfer to investment properties in the current period (Note 4(15)) | (165,321,128.59) | - | - | - | - | - | - | (165,321,128.59) | |||||||
| Disposal in the current period | - | (3,259,396.01) | (91,297,248.12) | - | - | - | (27,433.36) | (94,584,077.49) | |||||||
| Decrease due to disposal of subsidiaries in the current period | (2,271,420,574.89) | (9,983.96) | - | - | - | - | - | (2,271,430,558.85) | |||||||
| Effect of translation of foreign currency financial statements | (16,920,209.07) | (467,375.49) | - | (47,490.45) | (2,278,982.25) | (28,798,372.27) | (62,862.22) | (48,575,291.75) | |||||||
| 30 June 2021 | 5,072,380,592.86 | 630,351,326.69 | 4,527,848,807.85 | 21,677,261.09 | 223,793,002.00 | 2,561,406,413.51 | 122,604,567.87 | 13,160,061,971.87 | |||||||
| Accumulated amortisation | |||||||||||||||
| 31 December 2020 | 558,213,921.94 | 440,534,287.05 | 1,524,469,064.59 | 5,093,076.40 | 28,191,460.18 | 280,860,909.13 | 26,018,388.00 | 2,863,381,107.29 | |||||||
| Transfer from investment properties in the current period (Note 4(15)) | 5,035,489.93 | - | - | - | - | - | - | 5,035,489.93 | |||||||
| Provision in the current period | 69,418,687.94 | 37,349,280.14 | 440,080,902.83 | 1,202,353.83 | 5,809,976.80 | 73,564,536.89 | 5,382,284.78 | 632,808,023.21 | |||||||
| Transfer to investment properties in the current period (Note 4(15)) | (12,564,444.11) | - | - | - | - | - | - | (12,564,444.11) | |||||||
| Disposal in the current period | - | (1,191,686.34) | (36,231,542.91) | (289,215.26) | - | - | - | (37,712,444.51) | |||||||
| Decrease due to disposal of subsidiaries in the current period | (235,474,890.05) | (4,159.98) | - | - | - | - | - | (235,479,050.03) | |||||||
| Effect of translation of foreign currency financial statements | (1,974,600.73) | (218,006.35) | - | (31,726.32) | (283,575.90) | (3,098,738.17) | (22,467.63) | (5,629,115.10) | |||||||
| 30 June 2021 | 382,654,164.92 | 476,469,714.52 | 1,928,318,424.51 | 5,974,488.65 | 33,717,861.08 | 351,326,707.85 | 31,378,205.15 | 3,209,839,566.68 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets (Cont’d)
| Land use rights | Purchased software | Self-developed software | Patents | Trademark rights | Customer relationships | Others | Total | ||||||||
| Provision for impairment loss | |||||||||||||||
| 31 December 2020 | - | - | 54,186,041.12 | - | - | - | - | 54,186,041.12 | |||||||
| Increase in the current period | - | - | - | - | - | - | - | - | |||||||
| 30 June 2021 | - | - | 54,186,041.12 | - | - | - | - | 54,186,041.12 | |||||||
| Carrying amount | |||||||||||||||
| 30 June 2021 | 4,689,726,427.94 | 153,881,612.17 | 2,545,344,342.22 | 15,702,772.44 | 190,075,140.92 | 2,210,079,705.66 | 91,226,362.72 | 9,896,036,364.07 | |||||||
| 31 December 2020 | 5,519,541,591.58 | 133,718,499.07 | 2,401,432,650.81 | 14,007,594.74 | 195,829,247.09 | 2,309,343,876.65 | 59,240,630.32 | 10,633,114,090.26 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets (Cont’d)
(a) The Group’s land use rights pledged as collateral for long-term borrowings (Note 4(34)(b)):
| 30 June 2021 | |||||
| Cost | Accumulated amortisation | Carrying amount | |||
| Land use rights | 41,788,755.01 | (4,457,467.20) | 37,331,287.81 | ||
| 31 December 2020 | |||||
| Cost | Accumulated amortisation | Carrying amount | |||
| Land use rights | 1,480,732,998.05 | (193,471,483.90) | 1,287,261,514.15 | ||
| 30 June 2021 | 31 December 2020 | ||
| Carrying amount of self-developed intangible assets | 2,545,344,342.22 | 2,401,432,650.81 | |
| Carrying amount of intangible assets | 9,896,036,364.07 | 10,633,114,090.26 | |
| Proportion | 25.72% | 22.58% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Capitalised development expenditures
| 31 December 2020 | Increase in the current period | Transfer to intangible assets in the current period (Note 4(19)) | 30 June 2021 | ||||
| Unmanned Aerial Vehicle Project | 60,650,385.66 | 3,809,679.63 | - | 64,460,065.29 | |||
| SF Intra-city projects | 21,376,077.83 | 18,892,379.64 | (175,313.06) | 40,093,144.41 | |||
| Settlement Platform System | 18,640,396.52 | 18,478,839.81 | (613,950.45) | 36,505,285.88 | |||
| Customer Service System | 21,456,498.67 | 43,734,698.54 | (35,397,170.90) | 29,794,026.31 | |||
| Warehousing Management System | 20,571,676.85 | 28,602,174.00 | (22,325,887.23) | 26,847,963.62 | |||
| Quick Delivery System | 18,073,320.64 | 8,010,657.32 | - | 26,083,977.96 | |||
| International Business System | 36,980,675.88 | 50,894,379.71 | (63,706,143.24) | 24,168,912.35 | |||
| TS Industrial Solutions System | 11,283,814.18 | 21,368,886.08 | (14,362,648.45) | 18,290,051.81 | |||
| Geographic Information System Project | 13,180,285.37 | 473,768.69 | - | 13,654,054.06 | |||
| Car-free Carriage Platform | 13,136,424.61 | 14,159,566.78 | (15,305,405.69) | 11,990,585.70 | |||
| Fengsheng System | 10,144,424.25 | 17,997,196.65 | (19,311,259.94) | 8,830,360.96 | |||
| Big Data Platform System | 15,352,609.87 | 8,518,273.97 | (17,210,339.50) | 6,660,544.34 | |||
| Airfreight Capacity Platform Phase II | 11,556,172.95 | 3,895,368.06 | (10,420,218.07) | 5,031,322.94 | |||
| Fengyuan Platform | 10,736,220.72 | 11,744,068.33 | (22,480,289.05) | - | |||
| Others | 257,764,466.14 | 433,484,888.75 | (417,749,673.87) | 273,499,681.02 | |||
| 540,903,450.14 | 684,064,825.96 | (639,058,299.45) | 585,909,976.65 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Goodwill
| 31 December 2020 | Increase in the current period | Decrease in the current period | Exchange differences on translation of foreign currency financial statements | 30 June 2021 | |||||
| Cost: | |||||||||
| SF Supply Chain Business | 2,851,242,766.53 | - | - | (30,056,061.01) | 2,821,186,705.52 | ||||
| SF/HAVI China Logistics (Cayman Islands) (“New Havi”) | 340,191,111.08 | - | - | (3,586,147.61) | 336,604,963.47 | ||||
| Guangdong Shunxin Freight Co., Ltd. (“Guangdong Shunxin”) | 149,587,124.73 | - | - | - | 149,587,124.73 | ||||
| Chongqing Xuefeng Refrigerates Logistics Co., Ltd. | 24,068,704.92 | 156,603.78 | - | - | 24,225,308.70 | ||||
| Bon Way Logistics (H.K.) Company Limited | - | 15,471,616.92 | - | - | 15,471,616.92 | ||||
| Suzhou Hengding Logistics Co., Ltd. | 5,677,452.73 | - | - | - | 5,677,452.73 | ||||
| Sichuan Wu Lian Yi Da Technology Co., Ltd. (“Wu Lian Yi Da”) | 4,940,247.25 | - | - | - | 4,940,247.25 | ||||
| Chengdu Shunyifeng Pharmaceuticals Co., Ltd. | 2,434,509.81 | - | - | - | 2,434,509.81 | ||||
| Hanxing Industrial Co., Ltd. | 1,433,984.47 | - | - | (15,116.19) | 1,418,868.28 | ||||
| 3,379,575,901.52 | 15,628,220.70 | - | (33,657,324.81) | 3,361,546,797.41 | |||||
| Less: Provision for impairment loss (Note 4(24)) | |||||||||
| Chengdu Shunyifeng Pharmaceuticals Co., Ltd. | (2,434,509.81) | - | - | - | (2,434,509.81) | ||||
| 3,377,141,391.71 | 15,628,220.70 | - | (33,657,324.81) | 3,359,112,287.60 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Goodwill (Cont’d)
During the goodwill impairment assessment, the Group compares the carrying amount of the relevant assets or sets of asset groups (including goodwill) withtheir recoverable amount. If the recoverable amount is lower than the carrying amount, the difference shall be recognised in profit or loss for the currentperiod.
The Group’s allocation of goodwill was not changed for the six months ended 30 June 2021.
The recoverable amounts of SF Supply Chain Business’s relevant asset group are calculated based on the eight-year forecast approved by management,together with a long-term growth rate in the remaining forecast period, determined by the present value of the future cash flows.
The major assumptions applied in cash flows projections are presented as follows:
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Revenue growth rates in the first eight-year forecast period | 3.60%~32.10% | 3.00%~29.00% | |
| Long-term growth rate | 3.00% | 3.00% | |
| Profit margin | 0.80%~6.87% | 1.70%~8.80% | |
| Pre-tax discount rate | 12.50% | 11.80% | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Goodwill (Cont’d)
The Group determined revenue growth rates and profit margin based on past performance and expectations of market development. Long-term growth rateis for the remaining forecast period which exclude first eight-year forecast period. According to the long-term inflation rate of Mainland China and Hong Kong,the Group adopts a long-term growth rate of 3%. The discount rate adopted by management is the pre-tax interest rates which is able to reflect the risksspecific to the related asset groups and sets of asset groups.
(22) Long-term prepaid expenses
| 31 December 2020 | Increase in the current period | Amortisation in the current period | Scrap/dispose in the current period | 30 June 2021 | |||||
| Right-of-use assets improvements | 1,297,197,199.41 | 442,167,684.00 | (345,569,782.61) | (45,477,784.21) | 1,348,317,316.59 | ||||
| Settling-in allowance and introduction fee for pilots | 519,548,908.19 | 81,730,948.23 | (39,849,993.12) | - | 561,429,863.30 | ||||
| Prepaid discount interest on interest-free loans to employees | 29,412,487.74 | - | (7,818,084.04) | (1,323,874.91) | 20,270,528.79 | ||||
| Others | 14,578,339.55 | 15,799,212.92 | (2,766,086.44) | (944,231.88) | 26,667,234.15 | ||||
| 1,860,736,934.89 | 539,697,845.15 | (396,003,946.21) | (47,745,891.00) | 1,956,684,942.83 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(23) Other non-current assets
| 30 June 2021 | 31 December 2020 | ||
| Advances for engineering equipment | 2,252,404,028.70 | 804,531,338.54 | |
| Prepaid land use rights | 94,636,613.07 | 405,424,800.00 | |
| Prepaid leases | 224,413,084.42 | 222,391,070.65 | |
| Prepaid equity | - | 30,300,000.00 | |
| 2,571,453,726.19 | 1,462,647,209.19 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Asset/Credit impairment and provision for losses
| Decrease in the current period | |||||||||||||
| 31 December 2020 | Provision in the current period | Reversal in the current period | Write-off in the current period | Other Decrease for the period | Exchange differences on translation of foreign currency financial statements | 30 June 2021 | |||||||
| Provision for bad debts | 369,838,882.92 | 29,904,289.20 | (10,000,000.00) | (25,439,989.21) | - | - | 364,303,182.91 | ||||||
| Including: Provision for bad debts of accounts receivable (Note 4(3)) | 227,852,715.45 | 21,893,810.94 | - | (22,083,061.68) | - | - | 227,663,464.71 | ||||||
| Provision for bad debts of other receivables (Note 4(7)) | 127,816,168.32 | 3,942,773.61 | (10,000,000.00) | (3,356,927.53) | - | - | 118,402,014.40 | ||||||
| Provision for bad debts of long-term receivables (Note 4(11)) | 14,169,999.15 | 4,067,704.65 | - | - | - | - | 18,237,703.80 | ||||||
| Provision for impairment of factoring receivables (Note 4(5)) | 124,086,398.51 | 135,595.95 | - | (22,395.11) | - | - | 124,199,599.35 | ||||||
| Provision for impairment of loans and advances (Note 4(6)) | 95,756,387.15 | - | (8,863,724.11) | - | - | (1,269,887.57) | 85,622,775.47 | ||||||
| Sub-total | 589,681,668.58 | 30,039,885.15 | (18,863,724.11) | (25,462,384.32) | - | (1,269,887.57) | 574,125,557.73 | ||||||
| Provision for impairment of long-term equity investments (Note 4(12)) | 148,076,009.73 | - | - | - | (22,587,342.22) | - | 125,488,667.51 | ||||||
| Provision for impairment of intangible assets (Note 4(19)) | 54,186,041.12 | - | - | - | - | - | 54,186,041.12 | ||||||
| Provision for impairment of inventories (Note 4(8)) | 5,279,698.19 | 711,212.39 | - | (750,000.00) | - | - | 5,240,910.58 | ||||||
| Provision for impairment of contract assets (Note 4(9)) | 2,005,201.91 | - | (119,192.56) | - | - | - | 1,886,009.35 | ||||||
| Provision for impairment of goodwill (Note 4(21)) | 2,434,509.81 | - | - | - | - | - | 2,434,509.81 | ||||||
| Sub-total | 211,981,460.76 | 711,212.39 | (119,192.56) | (750,000.00) | (22,587,342.22) | - | 189,236,138.37 | ||||||
| 801,663,129.34 | 30,751,097.54 | (18,982,916.67) | (26,212,384.32) | (22,587,342.22) | (1,269,887.57) | 763,361,696.10 | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Short-term borrowings
| 30 June 2021 | 31 December 2020 | ||
| Unsecured borrowings(a) | 14,400,721,897.14 | 7,438,650,702.16 | |
| Discounted notes (b) | 500,000,000.00 | - | |
| Rediscounted notes(c) | 117,861,459.91 | 102,356,334.16 | |
| Guaranteed borrowings(a) | - | 440,749,083.34 | |
| Re-factoring | - | 14,814,193.07 | |
| 15,018,583,357.05 | 7,996,570,312.73 |
| 30 June 2021 | 31 December 2020 | ||
| Payables to related parties (Note 8(4)(h)) | 371,684,516.61 | 314,264,984.33 | |
| Outsourcing cost payable | 10,040,349,188.93 | 10,065,154,438.11 | |
| Transportation cost payable | 2,398,910,343.29 | 2,044,198,469.96 | |
| Supply and material expenses payable | 1,287,052,211.35 | 1,261,801,093.96 | |
| Office and rental fees payable | 607,538,903.42 | 1,005,735,544.46 | |
| Customs cost payable | 34,549,435.26 | 37,069,556.32 | |
| Others | 1,156,157,493.17 | 756,716,264.81 | |
| 15,896,242,092.03 | 15,484,940,351.95 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(26) Accounts payable (Cont’d)
Accounts payable with ageing over 1 year are analysed as follows:
| 30 June 2021 | 31 December 2020 | Main reason for unsettlement | |||
| Outsourcing cost payable | 18,679,556.16 | 12,029,708.68 | No invoice issued by supplier | ||
| Transportation cost payable | 11,948,077.04 | 5,657,852.76 | No invoice issued by supplier | ||
| Office and rental fees payable | 8,463,554.75 | 25,312,773.48 | No invoice issued by supplier | ||
| Supply and material expenses payable | 6,407,011.21 | 10,962,158.40 | No invoice issued by supplier | ||
| Others | 86,054,600.62 | 50,095,317.02 | |||
| 131,552,799.78 | 104,057,810.34 |
| 30 June 2021 | 31 December 2020 | ||
| Advances from related parties (Note 8(4)(i)) | 45,002.04 | 37,417.86 | |
| Advances of rental and others | 23,987,175.96 | 27,538,251.61 | |
| 24,032,178.00 | 27,575,669.47 |
| 30 June 2021 | 31 December 2020 | ||
| Advances from related parties (Note 8(4)(j)) | 4,895,873.06 | 19,977,073.17 | |
| Advances of freight charges and others | 1,811,846,061.09 | 1,519,287,022.97 | |
| 1,816,741,934.15 | 1,539,264,096.14 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(29) Employee benefits payable
| 30 June 2021 | 31 December 2020 | ||
| Short-term employee benefits payable (a) | 3,215,426,459.63 | 4,276,901,616.86 | |
| Defined contribution plans payable (b) | 43,855,127.11 | 33,927,529.94 | |
| 3,259,281,586.74 | 4,310,829,146.80 |
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Wages and salaries, bonus, allowances and subsidies | 3,859,956,333.28 | 11,370,998,443.93 | (12,467,401,804.74) | 2,763,552,972.47 | |||
| Employee welfare | 7,083,268.99 | 291,657,286.89 | (273,588,343.97) | 25,152,211.91 | |||
| Social security contributions | 17,822,651.94 | 286,991,574.28 | (285,628,759.34) | 19,185,466.88 | |||
| Including: Medical insurance | 16,515,722.63 | 253,290,688.16 | (251,993,179.68) | 17,813,231.11 | |||
| Work injury insurance | 729,692.12 | 22,168,407.53 | (21,957,897.72) | 940,201.93 | |||
| Maternity insurance | 577,237.19 | 11,532,478.59 | (11,677,681.94) | 432,033.84 | |||
| Housing funds | 11,705,939.65 | 170,402,038.50 | (169,645,745.74) | 12,462,232.41 | |||
| Labour union funds and employee education funds | 352,958,990.39 | 103,662,484.86 | (85,416,452.77) | 371,205,022.48 | |||
| Non-monetary welfare | 24,042,556.28 | 713,457,640.58 | (720,192,457.94) | 17,307,738.92 | |||
| Others | 3,331,876.33 | 195,256,009.58 | (192,027,071.35) | 6,560,814.56 | |||
| 4,276,901,616.86 | 13,132,425,478.62 | (14,193,900,635.85) | 3,215,426,459.63 |
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Basic pension insurance | 33,021,819.46 | 498,973,396.43 | (489,315,707.56) | 42,679,508.33 | |||
| Unemployment insurance | 905,710.48 | 15,785,892.12 | (15,515,983.82) | 1,175,618.78 | |||
| 33,927,529.94 | 514,759,288.55 | (504,831,691.38) | 43,855,127.11 |
| 30 June 2021 | 31 December 2020 | ||
| Enterprise income tax payable | 766,410,256.71 | 1,264,422,727.03 | |
| Unpaid VAT | 486,917,359.84 | 448,742,681.47 | |
| Individual income tax payable | 69,039,081.04 | 90,188,333.18 | |
| City maintenance and construction tax payable | 20,513,733.48 | 20,748,815.50 | |
| Educational surcharge payable | 15,441,476.32 | 15,255,154.95 | |
| Others | 16,734,898.06 | 15,905,797.11 | |
| 1,375,056,805.45 | 1,855,263,509.24 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Other payables
| 30 June 2021 | 31 December 2020 | ||
| Current accounts payable to related parties (Note 8(4)(j)) | 287,699,143.26 | 375,953,817.77 | |
| Engineering equipment payable | 3,661,315,290.69 | 3,681,941,835.74 | |
| Payables of cash on delivery service | 1,077,573,514.41 | 1,393,659,038.39 | |
| Deposits payable | 1,032,880,471.34 | 901,720,755.25 | |
| Recharge card payable | 372,543,200.49 | 294,040,210.32 | |
| Management fees payable | 184,508,625.67 | 186,269,115.84 | |
| Warranty deposits payable | 152,278,300.32 | 128,945,874.86 | |
| Temporary collection payable | 49,988,637.13 | 65,391,753.40 | |
| Professional service fee payable | 10,893,441.27 | 11,551,338.02 | |
| Investments payable | 10,100,000.00 | - | |
| Others | 741,405,626.57 | 491,320,044.65 | |
| 7,581,186,251.15 | 7,530,793,784.24 |
| 30 June 2021 | 31 December 2020 | Main reason for unsettlement | |||
| Deposits payable | 297,374,469.97 | 282,912,917.46 | Continuing business not expired | ||
| Engineering equipment payable | 95,843,768.34 | 63,932,116.06 | Project payment unsettled | ||
| Management fees payable | 53,119,089.27 | 66,999,357.73 | Management service fees unsettled | ||
| Warranty deposits payable | 30,214,649.51 | 30,852,760.05 | Warranty in effect | ||
| Others | 34,540,811.48 | 29,589,206.06 | Other payments on hold | ||
| 511,092,788.57 | 474,286,357.36 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Current portion of non-current liabilities
| 30 June 2021 | 31 December 2020 | ||
| Current portion of lease liabilities (Note 4(36)) | 4,865,932,822.38 | -- | |
| Current portion of debentures payable (a) | 1,993,935,324.84 | 1,939,714,467.86 | |
| Current portion of long-term borrowings (Note 4(34)) | 855,213,514.60 | 803,722,191.93 | |
| Current portion of employee incentives (Note 4(38)) | 12,625,000.00 | 189,480,233.50 | |
| Current portion of long-term payables (Note 4(37)) | - | 12,434,000.99 | |
| 7,727,706,661.82 | 2,945,350,894.28 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Current portion of non-current liabilities (Cont’d)
(a) Current portion of debentures payable
| 31 December 2020 | Interest accrual | Amortisation of premium/ discount | Repayment for the current period | Reclassification from debentures payable in the current period (Note 4(35)) | Exchange differences on translation of foreign currency financial statements | 30 June 2021 | |||||||
| The First Debentures of 2017 | 3,641,666.67 | - | - | - | 8,740,000.02 | - | 12,381,666.69 | ||||||
| The First Debentures of 2018 | 814,009,100.82 | 17,160,000.00 | 166,833.54 | - | - | - | 831,335,934.36 | ||||||
| The First Middle-term Notes of 2018 | 1,012,511,953.20 | 22,300,000.02 | 87,009.48 | - | - | - | 1,034,898,962.70 | ||||||
| Overseas debentures denominated in USD of 2018 | 58,609,191.04 | - | - | (66,657,421.87) | 65,561,683.42 | (535,162.45) | 56,978,290.14 | ||||||
| The First Debentures of 2019 | 3,105,750.00 | - | - | - | 5,535,000.00 | - | 8,640,750.00 | ||||||
| Overseas debentures denominated in USD of 2020 | 47,836,806.13 | - | - | (65,041,484.38) | 63,972,309.41 | (436,799.11) | 46,330,832.05 | ||||||
| Green Corporate Debentures of 2021 (1st instalment) | - | - | - | - | 3,368,888.90 | - | 3,368,888.90 | ||||||
| 1,939,714,467.86 | 39,460,000.02 | 253,843.02 | (131,698,906.25) | 147,177,881.75 | (971,961.56) | 1,993,935,324.84 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) Other current liabilities
| 30 June 2021 | 31 December 2020 | ||
| Super&short term commercial paper (a): | |||
| The Second Phase of 2021 | 504,188,541.86 | - | |
| Short term corporate debentures (b): | |||
| The First Phase of 2021 | 1,002,830,256.89 | - | |
| The Second Phase of 2021 | 500,802,978.32 | - | |
| Output VAT to be transferred (contract liabilities) | 130,340,080.79 | 92,355,845.77 | |
| 2,138,161,857.86 | 92,355,845.77 |
| Par value (RMB) | Date of issue | Term | Interest rate | ||||
| The Second Phase of 2021 | 500,000,000.00 | 17 March 2021 to18 March 2021 | 180 days | 3.00% |
| Par value (RMB) | Date of issue | Term | Interest rate | ||||
| The First Phase of 2021 | 1,000,000,000.00 | From 20 May 2021 to 21 May 2021 | 270 days | 2.94% | |||
| The Second Phase of 2021 | 500,000,000.00 | From 3 June 2021 to 4 June 2021 | 1 year | 2.98% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Long-term borrowings
| 30 June 2021 | 31 December 2020 | ||
| Unsecured borrowings | 1,034,292,715.10 | 1,955,997,660.72 | |
| Guaranteed borrowings (a) | 170,621,875.00 | 202,750,385.20 | |
| Secured borrowings (b) | 93,396,950.83 | 510,794,412.06 | |
| Pledged borrowings (c) | 1,315,288,781.45 | - | |
| 2,613,600,322.38 | 2,669,542,457.98 | ||
| Less: Current portion of long-term borrowings (Note 4(32)) | |||
| Unsecured borrowings | (482,101,555.55) | (636,019,395.23) | |
| Guaranteed borrowings | (50,621,875.00) | (102,750,385.20) | |
| Secured borrowings | (20,126,950.83) | (64,952,411.50) | |
| Pledged borrowings | (302,363,133.22) | - | |
| (855,213,514.60) | (803,722,191.93) | ||
| 1,758,386,807.78 | 1,865,820,266.05 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Debentures payable
| 31 December 2020 | Issued in the current period | Issuance expenses | Interest accrual | Amortisation of premium/ discount | Exchange differences on translation of foreign currency financial statements | Current portion of debentures payable (Note 4(32)) | 30 June 2021 | ||||||||
| The First Debentures of 2017 | 380,000,000.00 | - | - | 8,740,000.02 | - | - | (8,740,000.02) | 380,000,000.00 | |||||||
| The First Debentures of 2019 | 299,815,626.62 | - | - | 5,535,000.00 | 52,476.54 | - | (5,535,000.00) | 299,868,103.16 | |||||||
| Overseas debentures denominated in USD of 2018 | 3,243,911,307.97 | - | - | 65,561,683.42 | 3,223,547.10 | (29,620,382.79) | (65,561,683.42) | 3,217,514,472.28 | |||||||
| Overseas debentures denominated in USD of 2020 | 4,501,703,534.18 | - | - | 63,972,309.41 | 3,013,957.75 | (41,105,369.46) | (63,972,309.41) | 4,463,612,122.47 | |||||||
| Green Corporates Debentures of 2021 (1st instalment) | - | 500,000,000.00 | (712,264.15) | 3,368,888.90 | 40,627.69 | - | (3,368,888.90) | 499,328,363.54 | |||||||
| 8,425,430,468.77 | 500,000,000.00 | (712,264.15) | 147,177,881.75 | 6,330,609.08 | (70,725,752.25) | (147,177,881.75) | 8,860,323,061.45 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Debentures payable (Cont’d)
| Currency | Par value | Date of issue | Term | Amount (equivalent to RMB) | |||||
| The First Debentures of 2017 (a) | RMB | 530,000,000.00 | 17 October 2017 | 3+2 years | 530,000,000.00 | ||||
| The First Debentures of 2018 (Note 4(32)(a))(a) | RMB | 800,000,000.00 | From 1 August 2018 to 2 August 2018 | 3 years | 800,000,000.00 | ||||
| Overseas debentures denominated in USD of 2018 (b) | USD | 500,000,000.00 | 27 July 2018 | 5 years | 3,230,050,000.00 | ||||
| The First Middle-term Notes of 2018 (Note 4(32)(a))(c) | RMB | 1,000,000,000.00 | 19 September 2018 | 3 years | 1,000,000,000.00 | ||||
| The First Debentures of 2019 (a) | RMB | 300,000,000.00 | 20 September 2019 | 3 years | 300,000,000.00 | ||||
| Overseas debentures denominated in USD of 2020 (d) | USD | 700,000,000.00 | 20 February 2020 | 10 years | 4,522,070,000.00 | ||||
| Green Corporate Debentures of 2021 (1st instalment) (e) | RMB | 500,000,000.00 | From 23 April 2021 to 26 April 2021 | 3 years | 500,000,000.00 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Debentures payable (Cont’d)
(a) (Cont’d)
Taisen Holdings was approved to issue corporate debentures of no more than RMB 2 billion(inclusive) in instalments to the public under the Regulatory Permission [2019] No. 388 as issued bythe China Securities Regulatory Commission. In 2019, Taisen Holdings publicly issued thecorporate debentures (1st instalment) (“the First Debentures of 2019”) to qualified investors. Thedebenture interest shall be annually calculated at simple interest rate, and the nominal interest rateis 3.69%, with interest paid annually and the final instalment of interest paid with the principal.
(b) On 26 July 2018, S.F. Holding Investment Limited, a wholly-owned overseas subsidiary of the
Company, issued debentures of USD 500 million overseas (“Overseas debentures denominated inUSD of 2018”). The debentures were listed on the Stock Exchange of Hong Kong Limited (“SEHK”)on 27 July 2018. The nominal interest rate is 4.13% per annum, and the interest is paidsemi-annually, for which the Company provides unconditional and irrevocable cross-borderguarantee.
(c) According to the Notice of Acceptance of Registration issued by the National Association of
Financial Market Institutional Dealers (Zhong Shi Zhu Xie [2017] MTN443), Taisen Holdings’ quotaof middle-term notes was RMB 2 billion. On 19 September 2018, Taisen Holdings issued the firstmiddle-term notes of 2018 (“the First Middle-term Notes of 2018”) totalling RMB 1 billion at anominal interest rate of 4.46%, with interest paid annually and the final instalment of interest paidwith the principal. The middle-term notes will mature in September 2021, thus reclassified to thecurrent portion of non-current liabilities.
(d) On 20 February 2020, S.F. Holding Investment Limited, a wholly-owned overseas subsidiary of the
Company, issued debentures of USD 700 million overseas (“Overseas debentures denominated inUSD of 2020”). The debentures were listed on SEHK on 21 February 2020. The nominal interestrate is 2.875% per annum, and the interest is paid semi-annually, for which the Company providesguarantee.
(e) Taisen Holdings was approved to issue corporate debentures of no more than RMB 2 billion
(inclusive) in instalments to the public under the Regulatory Permission [2019] No. 388 as issued bythe China Securities Regulatory Commission. In 2021, Taisen Holdings publicly issued the GreenCorporate Debentures (1st instalment) (specially for carbon neutrality) (“Green CorporateDebentures of 2021 (1st instalment)”) to qualified investors. The debenture interest shall beannually calculated at simple interest rate, and the nominal interest rate is 3.79%, with interest paidannually and the final instalment of interest paid with the principal.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Lease liabilities
| 30 June 2021 | 31 December 2020 | ||
| Lease liabilities | 13,006,217,787.93 | -- | |
| Less: Current portion of non-current liabilities (Note 4(32)) | (4,865,932,822.38) | -- | |
| 8,140,284,965.55 | -- |
| 30 June 2021 | 31 December 2020 | ||
| Finance leases payable | - | 15,131,771.29 | |
| Others | - | 7,503,856.60 | |
| Less:Current portion of long-term payables (Note 4(32)) | - | (12,434,000.99) | |
| - | 10,201,626.90 |
| 30 June 2021 | 31 December 2020 | ||
| Cash-settled share-based payments | 143,072,578.78 | 119,062,850.83 | |
| Employee incentives | 33,643,233.50 | 189,480,233.50 | |
| Long-term service bonus | 27,815,439.20 | 26,477,376.10 | |
| Less: Current portion of employee incentives (Note 4(32)) | (12,625,000.00) | (189,480,233.50) | |
| 191,906,251.48 | 145,540,226.93 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Deferred income
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | Source | |||||
| Government grants (a) | 414,736,204.81 | 182,442,212.45 | (41,037,181.29) | 556,141,235.97 | Received government grants pending for future recognition in income | ||||
| Consideration of land acquisition | - | 38,736,401.94 | - | 38,736,401.94 | Received consideration pending for future recognition in income | ||||
| 414,736,204.81 | 221,178,614.39 | (41,037,181.29) | 594,877,637.91 |
| Government grants | 31 December 2020 | Increase in grants in the current period | Amount recognised in other income in the current period (Note 4(55)) | Decrease in disposal of subsidiaries in the current period | 30 June 2021 | Related to assets/income | ||||
| Huanggang Baitan Lake Organising Committee Project | 203,324,004.00 | 125,060,960.00 | - | - | 328,384,964.00 | Related to assets | ||||
| Construction development fund for Tianjin Project | 41,330,343.47 | - | (206,165.64) | - | 41,124,177.83 | Related to assets | ||||
| Grant for maintenance of aircraft engines | 28,505,473.01 | - | (933,035.81) | - | 27,572,437.20 | Related to assets | ||||
| Ancillary grant of infrastructure for Wuhu E-Commerce Industrial Park | 25,307,870.49 | - | (187,083.92) | (25,120,786.57) | - | Related to assets | ||||
| Comprehensive pilot program of Shanghai modern service industry | 24,918,263.92 | - | (168,263.92) | - | 24,750,000.00 | Related to assets | ||||
| Weihai industrial development support fund | 16,311,231.45 | - | (93,322.26) | - | 16,217,909.19 | Related to assets | ||||
| Ma’anshan Industrial Park Project | 14,200,888.14 | 4,409,500.00 | (170,785.62) | - | 18,439,602.52 | Related to assets | ||||
| Subsidy for new energy vehicles | 9,131,381.94 | - | (835,470.90) | - | 8,295,911.04 | Related to assets | ||||
| Guangzhou Modern Supply Chain System Construction Project | 9,066,364.80 | - | (1,575,147.54) | - | 7,491,217.26 | Related to assets | ||||
| Subsidy for investment and construction of Ganzhou Development Zone | 6,488,685.00 | - | - | - | 6,488,685.00 | Related to assets | ||||
| Special fund for service industry development in Changchun | 4,160,966.55 | - | (46,840.14) | - | 4,114,126.41 | Related to assets | ||||
| Subsidy for Guangdong Yue Cai Ke Jiao Projects | 3,200,000.00 | - | - | - | 3,200,000.00 | Related to assets | ||||
| Subsidy for Nanjing Fengtai Industrial Park Project | 3,000,000.00 | 2,000,000.00 | (34,305.32) | - | 4,965,694.68 | Related to assets | ||||
| Shenzhen intelligent logistics project fund | 2,822,222.20 | - | (833,333.34) | - | 1,988,888.86 | Related to assets |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Deferred income (Cont’d)
(a) (Cont’d)
| Government grants | 31 December 2020 | Increase in grants in the current period | Amount recognised in other income in the current period (Note 4(55)) | Decrease in disposal of subsidiaries in the current period | 30 June 2021 | Related to assets/income | ||||
| Special fund of Shenzhen industrial design development | 2,769,473.64 | - | (115,166.68) | - | 2,654,306.96 | Related to assets | ||||
| Commercial circulation development project | 1,783,369.12 | - | (463,712.07) | - | 1,319,657.05 | Related to assets | ||||
| Tianjin Port Free Trade Zone supply chain system construction project | 1,713,955.56 | - | (505,172.34) | - | 1,208,783.22 | Related to assets | ||||
| Enterprise Expansion Fund | 683,212.40 | - | - | - | 683,212.40 | Related to assets | ||||
| Special subsidy for logistics standardisation granted by the Bureau of Commerce | 343,627.38 | - | (144,839.22) | - | 198,788.16 | Related to assets | ||||
| Special municipal supporting fund for Ezhou Transhipment Centre Project | - | 29,194,200.00 | - | - | 29,194,200.00 | Related to assets | ||||
| Others | 15,674,871.74 | 21,777,552.45 | (9,603,750.00) | - | 27,848,674.19 | Related to assets | ||||
| 414,736,204.81 | 182,442,212.45 | (15,916,394.72) | (25,120,786.57) | 556,141,235.97 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets not taking into consideration the offsetting of balances
| 30 June 2021 | 31 December 2020 | ||||||
| Deductible temporary differences and deductible tax losses | Deferred tax assets | Deductible temporary differences and deductible tax losses | Deferred tax assets | ||||
| Deductible tax losses | 6,147,286,611.42 | 1,471,680,634.86 | 4,293,803,363.96 | 1,019,822,622.30 | |||
| Accrued expenses | 972,784,517.67 | 223,525,167.94 | 916,494,818.02 | 211,149,453.98 | |||
| Employee incentives | 21,018,233.50 | 5,254,558.38 | - | - | |||
| Unrealised profits from internal transactions | 568,259,661.49 | 142,064,915.37 | 567,805,482.90 | 141,951,370.73 | |||
| Provision for asset impairment | 442,029,238.05 | 101,887,759.50 | 418,871,236.81 | 97,647,556.61 | |||
| Deferred income | 160,817,532.73 | 38,841,927.78 | 379,953,251.04 | 93,473,271.68 | |||
| Depreciation and amortisation differences | 825,684,933.95 | 180,802,412.01 | 803,136,041.33 | 176,076,498.61 | |||
| 9,137,880,728.81 | 2,164,057,375.84 | 7,380,064,194.06 | 1,740,120,773.91 | ||||
| Including: | |||||||
| Expected to be recovered within 1 year (inclusive) | 358,870,678.14 | 385,849,550.76 | |||||
| Expected to be recovered after 1 year | 1,805,186,697.70 | 1,354,271,223.15 | |||||
| 2,164,057,375.84 | 1,740,120,773.91 | ||||||
| 30 June 2021 | 31 December 2020 | ||
| Deductible tax losses (c) | 9,200,159,487.25 | 6,200,346,659.44 | |
| Deductible temporary differences | 210,300,530.35 | 229,507,703.41 | |
| 9,410,460,017.60 | 6,429,854,362.85 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) The following table shows unrecognised deductible tax losses based on its expiration date:
| 30 June 2021 | 31 December 2020 | ||
| 2021 | 207,482,250.02 | 221,049,045.31 | |
| 2022 | 243,199,045.64 | 249,846,567.01 | |
| 2023 | 517,305,652.81 | 523,916,110.63 | |
| 2024 | 1,499,345,677.80 | 1,508,970,519.19 | |
| 2025 | 2,648,511,718.02 | 2,548,822,310.72 | |
| 2026 and subsequent years | 4,084,315,142.96 | 1,147,742,106.58 | |
| 9,200,159,487.25 | 6,200,346,659.44 |
| 30 June 2021 | 31 December 2020 | ||||||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | ||||
| Changes in fair value of investments in other equity instruments | 859,659,896.85 | 214,914,974.21 | 932,870,364.02 | 233,217,591.00 | |||
| Changes in fair value of other non-current financial assets | 27,391,319.76 | 6,847,829.94 | 27,391,319.76 | 6,847,829.94 | |||
| Changes in fair value upon reclassification of remaining equity of Hive Box Technology | 446,796,225.96 | 111,699,056.49 | 446,796,225.96 | 111,699,056.49 | |||
| Changes in fair value upon reclassification of remaining equity of Shenzhen Fengyi Technology Co., Ltd. ("Fengyi Technology") | - | - | 28,000,000.00 | 7,000,000.00 | |||
| Depreciation of fixed assets | 4,649,660,323.11 | 1,100,824,505.16 | 3,824,110,621.39 | 905,252,293.68 | |||
| Appreciation in asset value arising from business combination involving enterprises not under common control | 2,516,133,974.89 | 587,014,662.71 | 2,629,788,996.63 | 613,610,691.51 | |||
| Changes in fair value of financial assets held for trading | 17,253,781.41 | 4,313,445.35 | 16,847,854.84 | 4,211,963.71 | |||
| Others | 1,370,102.95 | 342,525.74 | 26,478,052.63 | 6,619,513.16 | |||
| 8,518,265,624.93 | 2,025,956,999.60 | 7,932,283,435.23 | 1,888,458,939.49 | ||||
| Including: | |||||||
| Expected to be recovered within 1 year (inclusive) | 362,894,017.36 | 323,259,120.82 | |||||
| Expected to be recovered after 1 year | 1,663,062,982.24 | 1,565,199,818.67 | |||||
| 2,025,956,999.60 | 1,888,458,939.49 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Deferred tax assets and deferred tax liabilities (Cont’d)
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
| 30 June 2021 | 31 December 2020 | ||
| Deferred tax assets - net | 1,776,170,609.17 | 1,539,267,775.98 | |
| Deferred tax liabilities - net | 1,638,070,232.93 | 1,687,605,941.56 |
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Ordinary shares denominated in RMB | 4,556,440,455.00 | - | - | 4,556,440,455.00 |
| 31 December 2019 | Increase in the current period(i) | Decrease in the current period (Note 4(43)(ii)) | 30 June 2020 | ||||
| Ordinary shares denominated in RMB | 4,414,585,265.00 | 36,244,799.00 | (2,456,568.00) | 4,448,373,496.00 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(42) Capital reserve
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Share premium | |||||||
| - Capital contribution by shareholders | 15,768,464,376.95 | - | - | 15,768,464,376.95 | |||
| - Transfer of convertible corporate debentures to equity (Note 4(41)(i)) | 5,758,688,018.73 | - | - | 5,758,688,018.73 | |||
| - Transfer of convertible corporate debentures issued by subsidiaries to equity | 1,980,870,478.56 | - | - | 1,980,870,478.56 | |||
| -Capital reserve generated from transactions with minority shareholders | 325,672,503.93 | 1,045,858,766.68 | - | 1,371,531,270.61 | |||
| - Share-based payments in capital contribution by shareholders (Note 4(43)(ii)) | 31,448,407.31 | - | - | 31,448,407.31 | |||
| - Business combinations involving enterprises under common control | (76,633,221.35) | - | - | (76,633,221.35) | |||
| Other capital reserve | |||||||
| - Amount of share-based payments recognised in capital reserve (Note 9(2)) | 264,637,027.21 | 104,555,342.61 | - | 369,192,369.82 | |||
| - Others (i) | 352,069,695.16 | - | (5,855,720.04) | 346,213,975.12 | |||
| 24,405,217,286.50 | 1,150,414,109.29 | (5,855,720.04) | 25,549,775,675.75 |
| 31 December 2019 | Increase in the current period | Decrease in the current period | 30 June 2020 | ||||
| Share premium | |||||||
| - Capital contribution by shareholders | 15,768,464,376.95 | - | - | 15,768,464,376.95 | |||
| - Business combinations involving enterprises under common control | (76,633,221.35) | - | - | (76,633,221.35) | |||
| - Transfer of convertible corporate debentures to equity (Note 4(41)(i)) | - | 1,443,407,004.09 | - | 1,443,407,004.09 | |||
| - Share-based payments in capital contribution by shareholders (Note 4(43)(ii)) | 88,760,253.39 | - | (57,311,814.73) | 31,448,438.66 | |||
| -Capital reserve generated from transactions with minority shareholders | - | 343,545,387.57 | - | 343,545,387.57 | |||
| Other capital reserve | |||||||
| - Amount of share-based payments recognised in capital reserve (Note 9(2)) | 47,011,172.79 | 47,180,411.55 | - | 94,191,584.34 | |||
| - Others (i) | 296,416,012.38 | 5,209,476.53 | - | 301,625,488.91 | |||
| 16,124,018,594.16 | 1,839,342,279.74 | (57,311,814.73) | 17,906,049,059.17 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(43) Treasury stock
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Treasury stock | 394,992,892.71 | - | - | 394,992,892.71 |
| 31 December 2019 | Increase in the current period | Decrease in the current period(ii) | 30 June 2020 | ||||
| Treasury stock | 454,761,306.79 | - | (59,768,382.73) | 394,992,924.06 |
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Safety reserve | - | 12,520,064.22 | (12,520,064.22) | - |
| 31 December 2019 | Increase in the current period | Decrease in the current period | 30 June 2020 | ||||
| Safety reserve | - | 12,187,435.48 | (12,187,435.48) | - |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Surplus reserve
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Statutory surplus reserve | 745,043,348.45 | - | - | 745,043,348.45 | |||
| 31 December 2019 | Increase in the current period | Decrease in the current period | 30 June 2020 | ||||
| Statutory surplus reserve | 601,241,237.54 | - | - | 601,241,237.54 |
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Retained earnings at the beginning of the period | 25,708,230,458.34 | 19,769,413,015.66 | |
| Add: Net profit attributable to shareholders of the parent company for the current period | 759,921,074.24 | 3,761,593,296.43 | |
| Transfer from other comprehensive income to retained earnings | 113,136,152.81 | - | |
| Less: Ordinary share dividends payable (a) | (1,499,991,809.58) | (1,188,301,851.36) | |
| Appropriation to general risk reserve | (3,940,692.75) | (2,344,717.97) | |
| Retained earnings at the end of the period | 25,077,355,183.06 | 22,340,359,742.76 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Minority interests
| 30 June 2021 | 31 December 2020 | ||
| Hangzhou SF Intra-city Industrial Co., Ltd. (“Intra-city Industrial”) | 468,201,998.84 | 64,563,927.89 | |
| New Havi | 188,474,736.17 | 186,219,284.07 | |
| Chongqing Fonair UAS Technology Co., Ltd. | 106,321,323.63 | 68,350,562.60 | |
| Shenzhen S.F. Express Co., Ltd. | 96,036,490.75 | 204,187,038.94 | |
| Guangdong Fengxing Zhitu Technology Co., Ltd. | 88,542,138.28 | 57,772,424.84 | |
| Beijing Fengjietai Enterprise Management Co., Ltd. | 79,764,766.15 | - | |
| Beijing S.F. Intra-city Technology Co., Ltd. | 38,185,015.03 | 35,220,504.42 | |
| Shanghai Taigenrun Enterprise Management Co., Ltd. | 29,773,601.44 | - | |
| Chongqing Xuefeng Refrigerates Logistics Co., Ltd. | 29,261,049.21 | 27,715,827.08 | |
| Wu Lian Yi Da | 15,683,112.60 | 24,022,486.09 | |
| Chengdu Fengcheng Logistics Co., Ltd. | (10,518,494.73) | (10,909,045.82) | |
| Shenzhen Fengwang Holdings Co., Ltd. | (69,836,622.41) | - | |
| Guangdong Shunxin | (498,409,679.83) | (395,350,884.73) | |
| Others | 63,086,458.98 | 54,858,695.26 | |
| 624,565,894.11 | 316,650,820.64 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(48) Revenue and cost of revenue
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Revenue from main operations (a) | 88,203,059,310.59 | 71,028,669,391.17 | |
| Revenue from other operations (b) | 140,870,513.19 | 100,338,347.04 | |
| Total revenue | 88,343,929,823.78 | 71,129,007,738.21 | |
| Cost of revenue from main operations (a) | 79,334,613,584.16 | 57,799,242,648.49 | |
| Cost of revenue from other operations (b) | 86,740,004.24 | 63,886,252.92 | |
| Total cost of revenue | 79,421,353,588.40 | 57,863,128,901.41 | |
| For the six months ended 30 June 2021 | For the six months ended 30 June 2020 | ||||||
| Revenue from main operations | Cost of revenue from main operations | Revenue from main operations | Cost of revenue from main operations | ||||
| Express & logistics and supply chain services | 87,099,464,261.56 | 78,446,298,960.60 | 70,188,001,144.10 | 57,121,320,304.19 | |||
| Sales of goods | 563,159,220.18 | 538,123,428.16 | 452,123,296.72 | 427,084,226.66 | |||
| Others | 540,435,828.85 | 350,191,195.40 | 388,544,950.35 | 250,838,117.64 | |||
| 88,203,059,310.59 | 79,334,613,584.16 | 71,028,669,391.17 | 57,799,242,648.49 | ||||
| For the six months ended 30 June 2021 | For the six months ended 30 June 2020 | ||||||
| Revenue from other operations | Cost of revenue from other operations | Revenue from other operations | Cost of revenue from other operations | ||||
| Disposal of materials | 3,183,096.84 | 1,910,079.34 | 3,792,612.75 | 1,628,114.57 | |||
| Others | 137,687,416.35 | 84,829,924.90 | 96,545,734.29 | 62,258,138.35 | |||
| 140,870,513.19 | 86,740,004.24 | 100,338,347.04 | 63,886,252.92 | ||||
| For the six months ended 30 June 2021 | |||||||
| Express & logistics and supply chain services | Sales of goods | Others | Total | ||||
| Revenue from main operations | |||||||
| Including: At a point in time | - | 563,159,220.18 | 145,262,134.98 | 708,421,355.16 | |||
| Over time | 87,099,464,261.56 | - | 337,311,788.61 | 87,436,776,050.17 | |||
| Lease income | - | - | 57,861,905.26 | 57,861,905.26 | |||
| 87,099,464,261.56 | 563,159,220.18 | 540,435,828.85 | 88,203,059,310.59 | ||||
| Revenue from other operations | |||||||
| Including: At a point in time | - | - | 27,000,813.77 | 27,000,813.77 | |||
| Over time | - | - | 40,722,829.27 | 40,722,829.27 | |||
| Lease income | - | - | 73,146,870.15 | 73,146,870.15 | |||
| - | - | 140,870,513.19 | 140,870,513.19 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Taxes and surcharges
| For the six months ended 30 June | Payment criteria | |||
| 2021 | 2020 | |||
| City maintenance and construction tax | 74,975,014.24 | 70,719,764.91 | Refer to Note 3 | |
| Educational surcharge | 56,453,056.26 | 51,122,638.61 | Refer to Note 3 | |
| Stamp tax | 51,766,674.89 | 33,782,373.62 | ||
| Property tax | 22,459,416.12 | 20,500,315.63 | ||
| Land use tax | 4,042,127.54 | 4,540,245.80 | ||
| Flood-control project expenses | 288,146.85 | 102,619.07 | ||
| Others | 664,464.28 | 1,083,730.16 | ||
| 210,648,900.18 | 181,851,687.80 | |||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Employee benefits | 462,049,331.65 | 400,354,453.54 | |
| Outsourcing expenses of information technology service | 438,407,058.41 | 277,321,643.40 | |
| Marketing expenses | 97,897,901.36 | 93,535,249.52 | |
| IT and information platform expenses | 87,196,421.66 | 100,204,009.91 | |
| Depreciation and amortisation expenses | 84,732,867.55 | 89,629,461.92 | |
| Office and rental fees | 30,367,129.66 | 50,945,774.92 | |
| Travelling and transportation expenses | 15,462,551.69 | 9,382,883.02 | |
| Depreciation expenses of right-of-use assets | 13,875,278.07 | -- | |
| Supply and material expenses | 12,909,315.03 | 11,194,918.81 | |
| Others | 67,335,799.07 | 24,090,306.89 | |
| 1,310,233,654.15 | 1,056,658,701.93 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Employee benefits | 5,391,964,944.40 | 4,858,862,486.41 | |
| Depreciation and amortisation expenses | 190,266,916.06 | 148,253,379.17 | |
| Office and rental fees | 139,310,035.81 | 255,935,823.26 | |
| Professional service fees | 160,150,002.39 | 115,324,486.22 | |
| Outsourcing expenses | 151,553,189.38 | 118,052,450.55 | |
| Depreciation expenses of right-of-use assets | 90,764,300.85 | -- | |
| Entertainment expenses | 86,066,720.41 | 68,271,706.15 | |
| Supply and material expenses | 69,175,828.78 | 76,137,816.90 | |
| Brand royalties | 65,372,508.50 | 55,109,364.65 | |
| IT and information platform expenses | 59,603,746.02 | 52,851,185.87 | |
| Travelling and transportation expenses | 58,429,812.92 | 42,838,862.22 | |
| Taxes | 9,188,688.27 | 6,201,858.42 | |
| Others | 57,199,595.34 | 63,603,742.91 | |
| 6,529,046,289.13 | 5,861,443,162.73 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Research and development expenses
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Employee benefits | 551,445,200.18 | 425,321,626.35 | |
| Depreciation and amortisation expenses | 236,356,466.83 | 148,462,487.06 | |
| IT and information platform expenses | 103,392,458.56 | 29,352,477.08 | |
| Outsourcing expenses | 70,198,778.34 | 47,050,197.27 | |
| Office and rental fees | 9,038,353.66 | 22,823,668.49 | |
| Professional service fees | 7,985,474.07 | 16,619,041.55 | |
| Supply and material expenses | 6,878,661.93 | 34,290,640.40 | |
| Travelling and transportation expenses | 6,212,443.72 | 2,769,613.47 | |
| Depreciation expenses of right-of-use assets | 4,570,420.66 | -- | |
| Others | 11,138,445.73 | 6,649,876.74 | |
| 1,007,216,703.68 | 733,339,628.41 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Interest on borrowings | 436,297,215.58 | 578,195,340.26 | |
| Add: Interest expenses on lease liabilities | 236,897,641.83 | -- | |
| Less: Capitalised interest (Note 4(17)) | (6,593,009.54) | (10,137,901.97) | |
| Interest expenses | 666,601,847.87 | 568,057,438.29 | |
| Less: Interest income | (93,386,299.49) | (78,055,138.82) | |
| Net losses/(gains) on exchange | 18,965,643.62 | (32,405,986.92) | |
| Commission expenses and others | 29,721,030.77 | 15,371,157.37 | |
| 621,902,222.77 | 472,967,469.92 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Expenses by nature
The cost of revenue, selling and distribution expenses, general and administrative expenses andresearch and development expenses in the income statement are listed as follows by nature:
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Outsourcing costs | 51,806,901,786.42 | 36,000,601,551.98 | |
| Employee benefits | 13,236,891,370.56 | 12,286,229,366.65 | |
| Transportation cost | 9,568,946,290.55 | 6,127,474,359.27 | |
| Including: Aircraft maintenance costs | 193,181,905.52 | 153,749,892.99 | |
| Depreciation and amortisation expenses | 3,119,807,430.78 | 2,600,262,280.82 | |
| Office and rental fees | 2,664,406,182.54 | 3,814,075,460.69 | |
| Supply and material expenses | 2,513,313,727.93 | 2,183,349,831.19 | |
| Depreciation expenses of right-of-use assets | 2,326,093,581.19 | -- | |
| Claims expenses | 710,495,607.10 | 511,571,470.00 | |
| Cost of revenue of goods | 538,123,428.16 | 427,084,226.66 | |
| IT and information platform expenses | 499,809,345.98 | 529,974,865.83 | |
| Professional service fees | 172,112,387.51 | 132,959,967.33 | |
| Customs cost | 166,224,906.15 | 190,902,692.93 | |
| Travelling and transportation expenses | 126,311,026.83 | 98,215,008.51 | |
| Marketing expenses | 97,897,901.36 | 93,535,249.52 | |
| Brand royalties | 65,372,508.50 | 55,109,364.65 | |
| Taxes | 10,155,528.23 | 7,446,679.90 | |
| Others | 644,987,225.57 | 455,778,018.55 | |
| 88,267,850,235.36 | 65,514,570,394.48 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(55) Other income
| For the six months ended 30 June | Related to assets/income | |||
| 2021 | 2020 | |||
| Tax preference | 500,764,555.57 | 363,926,959.65 | Related to income | |
| Fiscal appropriation for logistics | 176,753,913.75 | 212,152,645.32 | Related to income | |
| Grant from Social Security Bureau | 23,126,260.04 | 52,657,030.26 | Related to income | |
| Amortisation of deferred income (Note 4(39)) | ||||
| 15,916,394.72 | 16,973,417.75 | Related to assets | ||
| 716,561,124.08 | 645,710,052.98 | |||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Investment income from disposal of subsidiaries(Note 5(2)) | 942,964,204.15 | - | |
| Investment income from financial assets held for trading | 159,182,930.38 | 213,247,428.71 | |
| Dividends of financial assets measured at fair value | 22,455,487.52 | 1,110,356.12 | |
| Gains on disposal of other long-term equity investments | 7,555,560.97 | 17,260,427.11 | |
| Investment income from wealth management products | 1,185,903.34 | 10,247,466.29 | |
| Share of net gains or losses of investees under equity method (Note 4(12)) | (8,751,248.27) | (18,447,519.77) | |
| Others | 5,905,905.90 | - | |
| 1,130,498,743.99 | 223,418,158.46 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(57) Gains arising from changes in fair value
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Structural deposits | 17,396,126.73 | 16,384,538.57 | |
| Others | 12,193,119.55 | 29,414.59 | |
| 29,589,246.28 | 16,413,953.16 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Losses on bad debts of accounts receivable | 21,893,810.94 | 205,151,831.67 | |
| (Reversal)/losses on bad debts of other receivables | (6,057,226.39) | 114,672,175.85 | |
| (Reversal)losses on impairment of loans and advances | (8,863,724.11) | 89,186,630.95 | |
| Losses on impairment of factoring receivables | 135,595.95 | 49,601,393.26 | |
| Losses on impairment of long-term receivables | 4,067,704.65 | 929,070.18 | |
| 11,176,161.04 | 459,541,101.91 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Inventory impairment losses | 711,212.39 | - | |
| Reversal on impairment of contract assets | (119,192.56) | - | |
| Losses on impairment of intangible assets | - | 23,599,356.05 | |
| Losses on impairment of long-term equity investments | - | 3,869,728.47 | |
| 592,019.83 | 27,469,084.52 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(60) Losses on disposal of assets
| For the six months ended 30 June | |||||||
| 2021 | Amount recognised in non-recurring profit or loss in 2021 | 2020 | Amount recognised in non-recurring profit or loss in 2020 | ||||
| Losses on disposal of fixed assets | 13,799,742.03 | 13,799,742.03 | 8,253,122.38 | 8,253,122.38 | |||
| Losses on disposal of right-of-use assets | 387,972.88 | 387,972.88 | - | - | |||
| Losses on disposal of intangible assets | - | - | 1,393,369.11 | 1,393,369.11 | |||
| 14,187,714.91 | 14,187,714.91 | 9,646,491.49 | 9,646,491.49 | ||||
| For the six months ended 30 June | |||||||
| 2021 | Amount recognised in non-recurring profit or loss in 2021 | 2020 | Amount recognised in non-recurring profit or loss in 2020 | ||||
| Government grants (i) | 20,470,670.39 | 20,470,670.39 | 13,929,041.59 | 13,929,041.59 | |||
| Compensation income | 12,863,204.98 | 12,863,204.98 | 9,155,484.11 | 9,155,484.11 | |||
| Others | 91,689,197.22 | 91,689,197.22 | 66,649,259.92 | 66,649,259.92 | |||
| 125,023,072.59 | 125,023,072.59 | 89,733,785.62 | 89,733,785.62 | ||||
| For the six months ended 30 June 2021 | Related to assets /income | For the six months ended 30 June 2020 | Related to assets /income | |
| General fiscal appropriation | 19,632,384.22 | Related to income | 13,301,583.00 | Related to income |
| Others | 838,286.17 | Related to income | 627,458.59 | Related to income |
| 20,470,670.39 | 13,929,041.59 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(61) Non-operating income and expenses (Cont’d)
(b) Non-operating expenses
| For the six months ended 30 June | |||||||
| 2021 | Amount recognised in non-recurring profit or loss in 2021 | 2020 | Amount recognised in non-recurring profit or loss in 2020 | ||||
| Losses on scrapping of long-term assets | 77,046,391.04 | 77,046,391.04 | 39,789,802.73 | 39,789,802.73 | |||
| Compensation expenses | 25,542,208.33 | 25,542,208.33 | 19,230,955.69 | 19,230,955.69 | |||
| Penalties and overdue fines | 11,899,596.80 | 11,899,596.80 | 6,876,977.69 | 6,876,977.69 | |||
| Donation expenses | 4,065,870.08 | 4,065,870.08 | 21,610,987.55 | 21,610,987.55 | |||
| Others | 7,541,659.53 | 7,541,659.53 | 11,964,928.43 | 11,964,928.43 | |||
| 126,095,725.78 | 126,095,725.78 | 99,473,652.09 | 99,473,652.09 | ||||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Current income tax | 926,731,792.97 | 1,466,179,044.85 | |
| Deferred income tax | (249,373,089.77) | 248,819,602.15 | |
| 677,358,703.20 | 1,714,998,647.00 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(62) Income tax expenses (Cont'd)
The reconciliation from income tax calculated based on the applicable tax rates and total profitpresented in the income statement to the income tax expenses is listed below:
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Total profit | 1,093,149,030.85 | 5,338,763,806.22 | |
| Income tax expenses calculated at the standard tax rate of 25% | 273,287,257.71 | 1,334,690,951.56 | |
| Income not subject to tax | (211,487,223.75) | (6,209,467.41) | |
| Costs, expenses and losses not deductible for tax purposes | 30,225,495.33 | 38,667,142.36 | |
| Effect of last-year tax filing differences | (869,368.57) | 13,660,450.66 | |
| Effect of different tax rates among subsidiaries and branches on income tax expenses | (74,396,824.52) | (93,873,206.20) | |
| Effect of tax preference | (973,354.30) | (5,000,000.00) | |
| Deductible tax losses and deductible temporary differences for which no deferred tax asset was recognised in the current period | 671,511,207.45 | 413,291,203.23 | |
| Reversal of deductible tax losses for which deferred tax assets were recognised in prior periods | 67,338.68 | 68,065,341.58 | |
| Utilisation of deductible tax losses and deductible temporary differences for which no deferred tax asset was recognised in prior periods | (9,813,603.47) | (46,570,727.68) | |
| Recognition of deductible tax losses and deductible temporary differences for which no deferred tax asset was recognised in prior periods | (192,221.36) | (1,723,041.10) | |
| Income tax expenses | 677,358,703.20 | 1,714,998,647.00 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(63) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinaryshareholders of the parent company by the weighted average number of outstanding ordinaryshares of the parent company:
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Consolidated net profit attributable to ordinary shareholders of the parent company | 759,921,074.24 | 3,761,593,296.43 | |
| Weighted average number of outstanding ordinary shares of the Company | 4,545,429,726.00 | 4,401,118,670.17 | |
| Basic earnings per share | 0.17 | 0.85 | |
| Including: | |||
| - Basic earnings per share from continuing operations | 0.17 | 0.85 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(63) Earnings per share (Cont’d)
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinaryshareholders of the parent company adjusted based on the dilutive potential ordinary shares by theadjusted weighted average number of outstanding ordinary shares of the Company. For the sixmonths ended 30 June 2021, the Company had no dilutive potential ordinary shares (for the sixmonths ended 30 June 2020: the Company had dilutive potential ordinary shares):
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Consolidated net profit attributable to ordinary shareholders of the parent company | 759,921,074.24 | 3,761,593,296.43 | |
| Add: Interest expenses from convertible corporate debentures of the company (net of tax) | - | 98,688,033.29 | |
| Less: Effect of convertible corporate debentures issued by subsidiaries on net profit attributable to the parent company | - | (3,995,114.22) | |
| Adjusted consolidated net profit attributable to ordinary shareholders of the parent company for calculation of earnings per share | 759,921,074.24 | 3,856,286,215.50 | |
| Weighted average number of outstanding ordinary shares of the Company | |||
| 4,545,429,726.00 | 4,401,118,670.17 | ||
| Add: Weighted average number of ordinary shares which convertible corporate debentures assumed to be fully converted into ordinary shares | - | 143,843,934.67 | |
| Weighted average number of outstanding diluted ordinary shares | 4,545,429,726.00 | 4,544,962,604.84 | |
| Diluted earnings per share | 0.17 | 0.85 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(64) Other comprehensive income
Other comprehensive income, the related income tax effect and the reclassifications to profit or loss for the six months ended 30 June 2021 and 2020:
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the six months ended 30 June 2021 | ||||||||||||||
| 31 December 2020 | Attributable to the parent company in the current period - net of tax | Other comprehensive income transferred into retained earnings | 30 June 2021 | Amount incurred before income tax for the current period | Less: Income tax (expenses) /credits | Attributable to the parent company - net of tax | Attributable to minority shareholders - net of tax | ||||||||
| Other comprehensive income items which will not be reclassified subsequently to profit or loss | |||||||||||||||
| Changes in fair value of investments in other equity instruments | 1,213,254,523.81 | (76,803,722.97) | (113,136,152.81) | 1,023,314,648.03 | (81,332,522.97) | 4,528,800.00 | (76,803,722.97) | - | |||||||
| Other comprehensive income items which will not be transferred to profit or loss under the equity method | (1,186,906.18) | (88,282.28) | - | (1,275,188.46) | (88,282.28) | - | (88,282.28) | - | |||||||
| Other comprehensive income items which will be reclassified subsequently to profit or loss | |||||||||||||||
| Cash flow hedging reserve | (22,857,620.11) | (5,527,991.60) | - | (28,385,611.71) | (5,527,991.60) | - | (5,527,991.60) | - | |||||||
| Exchange differences on translation of foreign currency financial statements | (45,240,906.00) | (83,895,126.41) | - | (129,136,032.41) | (84,697,852.81) | - | (83,895,126.41) | (802,726.40) | |||||||
| 1,143,969,091.52 | (166,315,123.26) | (113,136,152.81) | 864,517,815.45 | (171,646,649.66) | 4,528,800.00 | (166,315,123.26) | (802,726.40) | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(64) Other comprehensive income (Cont'd)
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the six months ended 30 June 2020 | ||||||||||||
| 31 December 2019 | Attributable to the parent company in the current period - net of tax | 30 June 2020 | Amount incurred before income tax for the current period | Less: Income tax (expenses) /credits | Attributable to the parent company - net of tax | Attributable to minority shareholders - net of tax | |||||||
| Other comprehensive income items which will not be reclassified subsequently to profit or loss | |||||||||||||
| Changes in fair value of investments in other equity instruments | 721,903,970.41 | 40,865,087.90 | 762,769,058.31 | 38,610,400.40 | 2,254,687.50 | 40,865,087.90 | - | ||||||
| Other comprehensive income items which will not be transferred to profit or loss under the equity method | (2,059,919.82) | 873,013.64 | (1,186,906.18) | 873,013.64 | - | 873,013.64 | - | ||||||
| Other comprehensive income items which will be reclassified subsequently to profit or loss | |||||||||||||
| Exchange differences on translation of foreign currency financial statements | 282,871,556.79 | 104,744,398.17 | 387,615,954.96 | 104,615,596.10 | - | 104,744,398.17 | (128,802.07) | ||||||
| 1,002,715,607.38 | 146,482,499.71 | 1,149,198,107.09 | 144,099,010.14 | 2,254,687.50 | 146,482,499.71 | (128,802.07) | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(65) Notes to the cash flow statement
(a) Cash received relating to other operating activities
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Inflows from cash on delivery service | 40,790,509,753.56 | 34,825,543,143.63 | |
| Recovered of receivables from disposed subsidiaries related to SF REIT | 2,272,140,801.41 | - | |
| Government grants | 667,914,957.45 | 389,538,947.63 | |
| Interest income | 108,138,443.16 | 85,061,683.52 | |
| Others | 1,148,001,942.78 | 820,792,110.16 | |
| 44,986,705,898.36 | 36,120,935,884.94 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Outflows from cash on delivery service | 41,106,595,372.77 | 34,807,712,241.80 | |
| Office and rental fees | 2,824,668,066.33 | 4,033,369,059.71 | |
| Claims expenses | 710,495,607.10 | 511,571,470.00 | |
| IT and information platform expenses | 529,797,906.74 | 561,773,357.78 | |
| Professional service fees | 183,097,027.52 | 139,203,648.33 | |
| Travelling and transportation expenses | 133,889,688.44 | 104,107,909.02 | |
| Marketing expenses | 103,771,775.44 | 99,147,364.49 | |
| Customs cost | 168,745,027.21 | 198,763,824.92 | |
| Entertainment expenses | 93,900,298.13 | 73,637,732.75 | |
| Bank charges | 29,721,030.76 | 15,371,157.37 | |
| Compensation and penalty | 37,441,805.13 | 26,107,933.38 | |
| Donation expenses | 4,065,870.08 | 21,610,987.55 | |
| Others | 982,151,534.20 | 894,418,352.01 | |
| 46,908,341,009.85 | 41,486,795,039.11 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Consideration | 2,987,199,525.23 | - | |
| Less: Cash and cash equivalents that will receive in future periods | (40,213,874.56) | - | |
| Less: Cash and cash equivalents held by the subsidiaries at the date of disposal | (390,382,431.47) | - | |
| Add: Cash and cash equivalents received in the current period from the disposal of subsidiaries in previous periods | 10,000,000.00 | 30,000,000.00 | |
| 2,566,603,219.20 | 30,000,000.00 | ||
| Less: SF REIT shares acquired (i) | (1,152,527,376.00) | - | |
| Net cash received from dispopal of subsidiaries | 1,414,075,843.20 | 30,000,000.00 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(65) Notes to the cash flow statement (Cont’d)
(c) Net cash received from disposal of subsidiaries and other business units (Cont’d)
(i) As stated in Note 5(2), the Group transferred its subsidiary which owns three underlying assets to SF
REIT. At the same time, the Group purchased 35% of the fund shares of SF REIT. The fund sharesamounted to HKD 1,394,400,000.00, equivalent to RMB 1,152,527,376.00.
(d) Net cash paid to acquire subsidiaries
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Cash and cash equivalents paid in the current period for acquisition of subsidiaries incurred in the current period | 236,554,680.97 | - | |
| Less: Cash and cash equivalents held by subsidiaries at the acquisition date | (37,012,969.90) | - | |
| 199,541,711.07 | - | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Redemption of bank wealth management products and structural deposits | 46,455,050,489.87 | 52,830,000,000.00 | |
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Purchase of bank wealth management products and structural deposits | 50,185,229,111.50 | 66,895,117,931.29 | |
| Net cash paid for disposal of subsidiaries | - | 36,217,441.31 | |
| 50,185,229,111.50 | 66,931,335,372.60 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(65) Notes to the cash flow statement (Cont’d)
(g) Cash payments relating to other financing activities
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Payment of lease liabilities (i) | 2,479,709,656.48 | -- | |
| Repurchase of shares | - | 58,663,220.22 | |
| Payment of financing expenses | 22,499,999.16 | 16,994,486.97 | |
| Acquisition of minority interests | 50,038,474.35 | 7,308,000.00 | |
| Others | 598,273.18 | 379,410.22 | |
| 2,552,846,403.17 | 83,345,117.41 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Net profit | 415,790,327.65 | 3,623,765,159.22 | |
| Add: Asset impairment losses | 592,019.83 | 27,469,084.52 | |
| Credit impairment losses | 11,176,161.04 | 459,541,101.91 | |
| Depreciation of right-of-use assets | 2,326,093,581.19 | -- | |
| Depreciation of fixed assets | 2,123,877,059.83 | 1,730,365,263.08 | |
| Depreciation of investment properties | 20,264,188.49 | 27,251,110.81 | |
| Amortisation of intangible assets | 591,904,873.82 | 457,822,929.32 | |
| Amortisation of long-term prepaid expenses | 396,003,946.21 | 393,322,855.05 | |
| Losses on disposal of long-term assets | 91,234,105.95 | 49,436,294.22 | |
| Gains arising from changes in fair value | (29,589,246.28) | (16,413,953.16) | |
| Financial costs | 677,749,407.46 | 524,673,273.00 | |
| Investment income | (1,130,498,743.99) | (223,418,158.46) | |
| Recognised expenses on equity-settled share-based payments | 122,360,610.58 | 54,253,366.54 | |
| Decrease/(Increase) in deferred tax assets | (269,254,291.71) | 54,902,793.10 | |
| Increase in deferred tax liabilities | 19,881,201.94 | 193,916,809.05 | |
| Amortisation of deferred income | (15,916,394.72) | (16,973,417.75) | |
| Decrease in inventories | 4,629,232.88 | 47,227,069.11 | |
| Increase in operating receivables | (2,659,996,146.31) | (2,163,201,334.61) | |
| Increase in operating payables | 1,635,330,949.30 | 1,707,772,075.15 | |
| Net cash flows from operating activities | 4,331,632,843.16 | 6,931,712,320.10 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(66) Supplementary information to the cash flow statement (Cont'd)
(b) Net increase/(decrease) in cash and cash equivalents
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Cash and cash equivalents at the end of the period | 16,243,660,679.07 | 9,390,724,718.39 | |
| Less: Cash and cash equivalents at the beginning of the period | (15,466,483,805.74) | (17,764,448,498.26) | |
| Net increase in cash and cash equivalents | 777,176,873.33 | (8,373,723,779.87) | |
| 30 June 2021 | 31 December 2020 | ||
| Cash on hand | 297,786.76 | 78,882.36 | |
| Cash at bank that can be readily drawn on demand | 16,154,929,677.19 | 15,262,345,098.88 | |
| Other cash balances that can be readily drawn on demand | 46,394,025.32 | 126,993,032.50 | |
| Other balances that can be readily drawn on demand | 42,039,189.80 | 77,066,792.00 | |
| 16,243,660,679.07 | 15,466,483,805.74 |
| 30 June 2021 | |||||
| Amount in the original currency | Exchange rate to RMB | Equivalent to RMB | |||
| Cash at bank and on hand - | |||||
| USD | 15,006,818.24 | 6.4601 | 96,945,546.51 | ||
| HKD | 9,581,093.64 | 0.8321 | 7,972,236.40 | ||
| EUR | 99,829.77 | 7.6862 | 767,311.58 | ||
| Receivables - | |||||
| USD | 73,876,806.63 | 6.4601 | 477,251,558.51 | ||
| HKD | 810,546.20 | 0.8321 | 674,439.28 | ||
| EUR | 120,493.01 | 7.6862 | 926,133.37 | ||
| Payables - | |||||
| USD | 20,231,148.98 | 6.4601 | 130,695,245.52 | ||
| HKD | 9,408,284.68 | 0.8321 | 7,828,445.51 | ||
| EUR | 899,441.52 | 7.6862 | 6,913,287.41 | ||
| SGD | 770,909.91 | 4.8027 | 3,702,449.02 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(67) Monetary items dominated in foreign currency (Cont’d)
| 31 December 2020 | |||||
| Amount in the original currency | Exchange rate to RMB | Equivalent to RMB | |||
| Cash at bank and on hand - | |||||
| USD | 10,721,146.84 | 6.5249 | 69,954,411.02 | ||
| HKD | 11,806,587.62 | 0.8416 | 9,936,424.14 | ||
| EUR | 99,878.10 | 8.0250 | 801,521.75 | ||
| Receivables - | |||||
| USD | 10,074,431.73 | 6.5249 | 65,734,659.60 | ||
| HKD | 191,100.03 | 0.8416 | 160,829.79 | ||
| EUR | 115,688.92 | 8.0250 | 928,403.58 | ||
| Payables - | |||||
| USD | 9,251,234.57 | 6.5249 | 60,363,380.45 | ||
| HKD | 2,245,888.08 | 0.8416 | 1,890,139.41 | ||
| EUR | 424,100.74 | 8.0250 | 3,403,408.44 | ||
| 30 June 2021 | |||||||
| Amount in the original currency | Exchange rate to HKD | Equivalent to HKD | Equivalent to RMB | ||||
| Cash at bank and on hand - | |||||||
| RMB | 54,822,393.51 | 1.2018 | 65,885,552.52 | 54,822,393.51 | |||
| USD | 34,718,699.22 | 7.7638 | 269,549,037.00 | 224,287,765.85 | |||
| EUR | 1,154,045.38 | 9.2373 | 10,660,263.39 | 8,870,247.45 | |||
| Accounts receivable - | |||||||
| RMB | 92,134,276.27 | 1.2018 | 110,726,973.23 | 92,134,276.27 | |||
| USD | 18,818,575.26 | 7.7638 | 146,103,654.60 | 121,570,689.47 | |||
| Accounts payable - | |||||||
| RMB | 1,304,351.70 | 1.2018 | 1,567,569.87 | 1,304,351.70 | |||
| USD | 3,465,584.09 | 7.7638 | 26,906,101.76 | 22,388,169.21 | |||
| EUR | 4,015,251.40 | 9.2373 | 37,090,081.76 | 30,862,108.30 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(67) Monetary items dominated in foreign currency (Cont’d)
| 31 December 2020 | |||||||
| Amount in the original currency | Exchange rate to HKD | Equivalent to HKD | Equivalent to RMB | ||||
| Cash at bank and on hand - | |||||||
| RMB | 16,364,222.86 | 1.1882 | 19,443,969.60 | 16,364,222.86 | |||
| USD | 25,396,509.42 | 7.7526 | 196,888,978.93 | 165,703,567.54 | |||
| EUR | 343,595.25 | 9.5350 | 3,276,180.71 | 2,757,263.68 | |||
| Receivables - | |||||||
| RMB | 1,799,469.88 | 1.1882 | 2,138,130.11 | 1,799,469.88 | |||
| USD | 6,779,714.69 | 7.7526 | 52,560,416.11 | 44,235,327.48 | |||
| Payables - | |||||||
| RMB | 1,976,784.46 | 1.1882 | 2,348,815.30 | 1,976,784.46 | |||
| USD | 4,829,945.98 | 7.7526 | 37,444,639.20 | 31,513,751.22 | |||
| EUR | 3,994,210.37 | 9.5350 | 38,084,795.88 | 32,052,512.95 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope
(1) Business combinations involving enterprises not under common control
(a) Business combinations involving enterprises not under common control during the six months ended 30 June 2021
| AAcquiree | Timing of acquisition | Acquisition cost | Proportion of equity acquired | Method of acquisition | Acquisition date | Basis for determining the acquisition date | Revenue of the acquiree from the acquisition date to the end of the period | Net profit of the acquiree from the acquisition date to the end of the period | Cash flows from operating activities of the acquiree from the acquisition date to the end of the period | Net cash flows of the acquiree from the acquisition date to the end of the period | |||
| Jiangsu Senyuan Household Appliance Technology Co., Ltd. | 3 February 2021 | 202,000,000.00 | 100.00% | Acquired by cash | 3 February 2021 | Equity delivery completed | - | (580,385.38) | (534,630.87) | 930,668.58 | |||
| Bon Way Logistics (H.K.) Company Limited | 30 April 2021 | 16,872,891.00 | 100.00% | Acquired by cash | 30 April 2021 | Equity delivery completed | 3,599,429.81 | 224,778.52 | 6,844,822.84 | 8,873,002.12 | |||
| 218,872,891.00 | 3,599,429.81 | (355,606.86) | 6,310,191.97 | 9,803,670.70 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(2) Disposal of subsidiaries
Aggregated information of subsidiaries disposed for the six months ended 30 June 2021:
| Name of subsidiary | Proceeds from disposal | Disposal proportion | Method of disposal | Timing of losing control | Basis for judgement of timing of losing control | Difference between proceeds from disposal after deducting disposal costs and corresponding shares of net assets in the consolidated financial statements | Amount transferred from other comprehensive income etc. related to initial equity investment to investment income or loss | |
| Zhengzhou Fengtai E-commerce Industrial Park Management Co., Ltd. | 170,824,003.04 | 100.00% | Sales of equity | 31 March 2021 | Transfer of control right | 17,450,301.50 | - | |
| Beijing Huabao Lutong Automobile Investment Co., Ltd. | 392,097,354.12 | 100.00% | Sales of equity | 28 February 2021 | Transfer of control right | 30,002,375.96 | - | |
| Company related to SF REIT (i) | 2,424,278,168.07 | 100.00% | Sales of equity | 13 May 2021 | Transfer of control right | 890,114,535.24 | 5,396,991.45 | |
| 2,987,199,525.23 | 937,567,212.70 | 5,396,991.45 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(2) Disposal of subsidiaries(Cont'd)
(i) SF Real Estate Investment Trust (“SF REIT”)
The REIT manager(Note 4 (12)(b)) entered into a trust deed with DB Trustees (Hong Kong) Limitedand used Foshan Guicheng Fengtai Industrial Park, Wuhu Fengtai Industrial Park and AsiaLogistics Centre located in Tsing Yi, Hong Kong(SF Building)(collectively "three property assets")held by the Group as underlying assets to establish the SF REIT. The Group purchased 35% of thefund shares of the SF REIT, and SF REIT became an associate of the Group (Note 4(12)(b)).
On May 13, 2021, the Group transferred the three property assets, which were respectively held bythree subsidiary wholly owned by the Group (Foshan Runzhong Industrial Investment Co., Ltd.,Wuhu Fengtai E-commerce Industrial Park Management Co., Ltd., and Goodear DevelopmentLimited) to a subsidiary of SF REIT. As a result, the Group lost control over the underlying assetcompany. Therefore, these companies were no longer included in the consolidation scope.The priceof the equity transfer transaction was approximately HKD 2,908 million (equivalent to approximatelyRMB 2,424 million) and the Group recognised investment income of approximately HKD 1,083million (equivalent to approximately RMB 896 million).
SF REIT has been listed on the Hong Kong Stock Exchange from May 17, 2021.
(3) Other changes in the consolidation scope
(a) For the six months ended 30 June 2021, the Group set up the following subsidiaries by cash:
Chongqing Xuefeng Zhiyuan Supply Chain Management Co., Ltd.Chongqing Jieyutai Enterprise Management Co., Ltd.Chongqing Fengyutai Enterprise Management Co., Ltd.Chongqing Fonair Aviation Engineering Technology Co., Ltd.Exel Logistics (Tianjin) Co., Ltd.Exel Aolong Logistics (Zhanjiang) Co., Ltd.Yirongcheng Information Service (Wuhan) Co., Ltd.New Havi (Hubei) Supply Chain Management Co., Ltd.Xinjiang E-Plus Technology Co., Ltd.Xi'an Fengle Apartment Management Co., Ltd.Wuhan Fengyu Apartment Management Co., Ltd.Tianjin E-Plus Technology Co., Ltd.Tianjin Shunxin Freight Co., Ltd.Tianjin Bingzhi Supply Chain Management Co., Ltd.Taizhou Jietai Enterprise Management Co., Ltd.Sichuan E-Plus Technology Co., Ltd.Sichuan Jieyutai Enterprise Management Co., Ltd.S.F. (Chengdu) International Logistics Co., Ltd.Shijiazhuang E-Plus Technology Co., Ltd.Shenyang E-Plus Technology Co., Ltd.Shenzhen Fengwang Holdings Co., Ltd.Shenzhen Chenfeng Industrial Investment Development Co., Ltd.Shenzhen Fengzan Technology Co., Ltd.Shanghai Zhihui Fenghe Trading Co., Ltd.Shanghai E-Plus Technology Co., Ltd.Shanghai Xijie Supply Chain Technology Co., Ltd.Shanghai Shunzijia Technology Co., Ltd.Shanghai S.F. E-commerce Co., Ltd.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(3) Other changes in the consolidation scope (Cont’d)
(a) For the six months ended 30 June 2021, the Group set up the following subsidiaries by cash
(Cont’d):
Shanghai Gejie Supply Chain Technology Co., Ltd.Shanghai Fengji Technology Co., Ltd.Shanxi E-Plus Technology Co., Ltd.Shandong E-Plus Technology Co., Ltd.Ningxia E-Plus Technology Co., Ltd.Nanning E-Plus Information Technology Co., Ltd.Chongqing E-Plus Technology Co,.Ltd.Nanchang Jietai Industrial Park Management Co., Ltd.Luohe Fengtai Industrial Park Management Co., Ltd.Jinhua Jietai Enterprise Management Co., Ltd.Jiangxi E-Plus Technology Co., Ltd.Jiangsu S.F. Information Service Technology Co., Ltd.Jilin E-Plus Technology Co., Ltd.Huai'an Fengyutai Enterprise Management Co., Ltd.Huai'an Fengtai E-Commerce Industrial Park Co., Ltd.Heilongjiang E-Plus Technology Co., Ltd.Hebi Fengtai Industrial Park Asset Management Co., Ltd.Henan E-Plus Information Technology Co., Ltd.Hefei E-Plus Technology Co., Ltd.Hefei Jiafeng Industrial Park Management Co., Ltd.Hefei Fengyutai Enterprise Management Co., Ltd.Hainan E-Plus Technology Co., Ltd.Hainan S.F. International Supply Chain Management Co., Ltd.Guizhou E-Plus Technology Co., Ltd.Guangzhou Fengyi Supply Chain Management Co., Ltd.Guangzhou Fengle Apartment Management Co., Ltd.Guangzhou Fengda Express Co., Ltd.Gansu Yishoufa Information Technology Co., Ltd.SF Supply Chain (Hainan) Co., Ltd.Dongguan S.F. Information Technology Service Co., Ltd.Dongguan Chengfeng Technology Co., Ltd.Chengdu Shengyutai Enterprise Management Co., Ltd.Changzhou Fengyutai Enterprise Management Co., Ltd.Beijing Yishoufa Technology Co., Ltd.Beijing Tongchen Human Resource Service Co., Ltd.Beijing Fengzan Technology Co., Ltd.Bengbu S.F. Logistics Co., Ltd.Zhentai Industrial Park Limited
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(3) Other changes in the consolidation scope (Cont’d)
(a) For the six months ended 30 June 2021, the Group set up the following subsidiaries by cash
(Cont’d):
Zhentai Industrial Park (Hong Kong) LimitedYouTai Investment LimitedYiJie Investment LimitedYifeng Industrial Park LimitedYifeng Industrial Park (Hong Kong) LimitedTaichen Industrial Park LimitedTaichen Industrial Park (Hong Kong) LimitedShunJie Investment LimitedShunda Industrial Park LimitedShunda Industrial Park (Hong Kong) LimitedSF International Express (Malaysia) SDN. BHDSF Logistics Brasil LTDA.SF Holding Investment 2021 LimitedSF Express Spain Global,S.L.SF Express International Bangladesh Ltd.SF Express (Mauritius)SF Express (Italy) S.R.L.SF Express (Hungary) Kft.Ruilifeng Industrial Park LimitedRuilifeng Industrial Park (Hong Kong) LimitedRuifeng Industrial Park LimitedRuifeng Industrial Park (Hong Kong) LimitedJietai Industrial Park LimitedJietai Industrial Park (Hong Kong) LimitedJiafeng Industrial Park LimitedJiafeng Industrial Park (Hong Kong) LimitedHongtong Industrial Park LimitedHongtong Industrial Park (Hong Kong) LimitedHongtai Industrial Park LimitedHongtai Industrial Park (Hong Kong) LimitedHengfeng Industrial Park LimitedHengfeng Industrial Park (Hong Kong) Limited
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(3) Other changes in the consolidation scope (Cont’d)
(a) For the six months ended 30 June 2021, the Group set up the following subsidiaries by cash
(Cont’d):
Hefeng Industrial Park LimitedHefeng Industrial Park (Hong Kong) LimitedFengyutai Industrial Park LimitedFengyutai Industrial Park (Hong Kong) LimitedFengruntai Industrial Park LimitedFengruntai Industrial Park (Hong Kong) LimitedFengruikai Industrial Park LimitedChengtai Industrial Park LimitedChengtai Industrial Park (Hong Kong) Limited
(b) For the six months ended 30 June 2021, the Group cancelled the following subsidiaries:
Zonghao Supply Chain Consulting (Shenzhen) Co., Ltd.Exel Supply Chain Management (Shanghai) Co., Ltd.S.F. Intra-city Holding Co., Ltd.Shenzhen Fengkong Technology Co., Ltd.Dunhuang Fengzhao Technology Co., Ltd.Dingxi Fengnong Technology Co., Ltd.
(c) For the six months ended 30 June 2021, subsidiaries acquired by the Group are as follows:
Flourish Harmony Holdings Company LimitedAdvance Harmony Holdings Company LimitedUltra Wise Investment LimitedSunny Sight LimitedFortune Up Development Limited
In addition, the company's indirect subsidiary SF Digital Technology (Shenzhen) Services Co., Ltd.acquired 100% of the equity of Weishi Internet Insurance Agency Co., Ltd. in April 2021. SinceWeishi Internet Insurance Agency Co., Ltd. does not constitute a business, the transaction does notform a business combination.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
6 Interests in other entities
(1) Interests in subsidiaries
(a) First-tier and second-tier subsidiaries of the Group are listed as follows:
| Shareholding (%) | |||||||
| Place of registration | Major business location | Registered capital | Nature of business | Direct | Indirect | Method of acquisition | |
| Taisen Holdings | Shenzhen | Shenzhen | RMB 2,010 million | Investment holding | 100.00% | - | Reverse acquisitions |
| S.F. Express Co., Ltd. | Shenzhen | Shenzhen | RMB 150 million | International freight forwarding, inbound and outbound express deliver, etc. | - | 100.00% | Business combination involving enterprises under common control |
| SF Technology | Shenzhen | Shenzhen | RMB 60 million | Technical maintenance and development service | - | 100.00% | By new establishment |
| Shenzhen Shunlu Logistics Co., Ltd. | Shenzhen | Shenzhen | RMB 160 million | Cargo transportation and freight forwarding | - | 100.00% | Business combination involving enterprises under common control |
| Anhui S.F. Telecommunication Service Co., Ltd. | Anhui | Anhui | RMB 50 million | Value-added telecommunication service | - | 100.00% | By new establishment |
| Shenzhen Yuhui Management Consulting Co., Ltd. | Shenzhen | Shenzhen | RMB 250 million | Consulting service | - | 100.00% | Business combination involving enterprises under common control |
| Shenzhen S.F. Supply Chain Co., Ltd. | Shenzhen | Shenzhen | RMB 1,500 million | Supply chain management and other services | - | 100.00% | By new establishment |
| SF Airlines | Shenzhen | Shenzhen | RMB 1,510 million | Transport service of aviation cargo | - | 100.00% | Business combination involving enterprises under common control |
| Shenzhen Fengtai E-commerce Industrial Park Management Co., Ltd. | Shenzhen | Shenzhen | RMB 5,860 million | E-Commerce industrial park asset management | - | 100.00% | Business combination involving enterprises under common control |
| Shenzhen Fengtai E-Commerce Industrial Park Investment Ltd. | Shenzhen | Shenzhen | RMB 58 million | Management consulting | - | 100.00% | By new establishment |
| Shenzhen S. F. Airport Investment Co., Ltd. | Shenzhen | Shenzhen | RMB 100 million | Industrial investment | - | 100.00% | By new establishment |
| SF Holding Limited | Hong Kong | Hong Kong | HKD 2,260.01 million | Investment holding | - | 100.00% | Business combination involving enterprises under common control |
| Group Finance Company | Shenzhen | Shenzhen | RMB 1,000 million | Financing, wealth management and consulting services | - | 100.00% | By new establishment |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests in subsidiaries (Cont'd)
(a) First-tier and second-tier subsidiaries of the Group are listed as follows (Cont'd):
| Shareholding (%) | |||||||
| Place of registration | Major business location | Registered capital | Nature of business | Direct | Indirect | Method of acquisition | |
| Shenzhen SF Chuangxing Investment Co., Ltd. | Shenzhen | Shenzhen | RMB 150 million | Industrial investment | - | 100.00% | By new establishment |
| Shenzhen Fengnong Technology Co., Ltd. | Shenzhen | Shenzhen | RMB 15 million | Retail | - | 100.00% | By new establishment |
| Shenzhen Fenglang Supply Chain Co., Ltd. | Shenzhen | Shenzhen | RMB 30 million | Supply chain management and other services | - | 100.00% | By new establishment |
| Shenzhen Shunfeng Runtai Management Consulting Co., Ltd. | Shenzhen | Shenzhen | RMB 5 million | Consulting service | - | 100.00% | By new establishment |
| Shunyuan Financial Leasing | Tianjin | Tianjin | RMB 1,500 million | Leasing business | - | 100.00% | By new establishment |
| SF Multimodal Co., Ltd. | Shenzhen | Shenzhen | RMB 242 million | Goods delivery services | - | 100.00% | By new establishment |
| Shenzhen Shunxi Management Consulting Co., Ltd. | Shenzhen | Shenzhen | RMB 2 million | Management consulting | - | 100.00% | By new establishment |
| S.F. Insurance Broker (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | RMB 50 million | Insurance business | - | 100.00% | By new establishment |
| S.F. Duolian Technology Co., Ltd. | Dongguan | Dongguan | RMB 150 million | Technology development | - | 100.00% | By new establishment |
| Dongguan SF Taisen Enterprise Management Co., Ltd. | Dongguan | Dongguan | RMB 30 million | Property management | - | 100.00% | By new establishment |
| SF Innovative Technology Co., Ltd. | Dongguan | Dongguan | RMB 450 million | Information technology service | - | 100.00% | By new establishment |
| Shenzhen Shunheng Rongfeng Supply Chain Technology Co., Ltd. | Shenzhen | Shenzhen | RMB 100 million | Consulting service | - | 100.00% | Business combination involving enterprises under common control |
| Shenzhen Hengyi Logistics Service Co., Ltd. | Shenzhen | Shenzhen | RMB 100 million | Freight forwarding service | - | 100.00% | Business combination involving enterprises under common control |
| Lefeng Factoring | Shenzhen | Shenzhen | RMB 62.5 million | Factoring | - | 100.00% | Business combination involving enterprises under common control |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests in subsidiaries (Cont'd)
(a) First-tier and second-tier subsidiaries of the Group are listed as follows (Cont'd):
| Shareholding (%) | |||||||
| Place of registration | Major business location | Registered capital | Nature of business | Direct | Indirect | Method of acquisition | |
| Intra-city Industrial | Hangzhou | Hangzhou | RMB 802.28 million | Supply chain management and other services | - | 77.17% | By new establishment |
| Shenzhen SF Express Zhongyuan Network Technology Co., Ltd. | Shenzhen | Shenzhen | RMB 10 million | Technology development and consulting services | - | 100.00% | By new establishment |
| SF Sharing Precision Information Technology (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | RMB 32 million | Information technology service | - | 100.00% | By new establishment |
| Hangzhou Shuangjie Supply Chain Co., Ltd. | Hangzhou | Hangzhou | RMB 50 million | Supply chain management and other services | - | 100.00% | By new establishment |
| S.F. Express | Shenzhen | Shenzhen | RMB 1,695 million | Corporate management and supply chain management | - | 87.80% | By new establishment |
| Huanggang Xiufeng Education Investment Co., Ltd. | Huanggang | Huanggang | RMB 90 million | Consulting services regarding business information and business management | - | 100.00% | By new establishment |
| Junhe Information Technology (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | RMB 10 million | Information technology and development services | - | 51.00% | By new establishment |
| S.F. Digital Technology (Shenzhen) Services Co., Ltd. | Shenzhen | Shenzhen | RMB 250 million | Technology and consulting services | - | 100.00% | By new establishment |
| Shenzhen S.F. International Industry Co., Ltd. | Shenzhen | Shenzhen | RMB 10 million | Information technology and consulting services | - | 100.00% | By new establishment |
| Shenzhen S.F. Investment Co., Ltd. | Shenzhen | Shenzhen | RMB 1,100 million | Investment holding | - | 100.00% | By new establishment |
| SF Cold Chain Logistics Co., Ltd. | Shenzhen | Shenzhen | RMB 50 million | Cargo transportation and freight forwarding | - | 100.00% | By new establishment |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests in subsidiaries (Cont'd)
(b) Subsidiaries in which the Group has significant minority interests
As at 30 June 2021 and 31 December 2020, minority interests of the Group’s subsidiaries had nosignificant influence on the Group.
(2) Interests in joint ventures and associates
(a) The Group’s associates have no significant influence on the Group and are summarised as follows:
| Ending balance/ | Opening balance/ | ||
| Amount in the current period | Amount in the prior period | ||
| Aggregated carrying amount of investments (Note 4(12)(b)) | 2,549,373,201.48 | 1,212,265,406.69 | |
| Aggregation of the following items in proportion: | |||
| Net profit/(loss) | 1,838,158.19 | (20,352,940.06) | |
| Other comprehensive income | (88,282.28) | 873,013.64 | |
| Total comprehensive income | 1,749,875.91 | (19,479,926.42) |
| Ending balance/ | Opening balance/ | ||
| Amount in the current period | Amount in the prior period | ||
| Aggregated carrying amount of investments (Note 4(12)(a)) | 2,526,594,898.69 | 2,434,965,871.21 | |
| Aggregation of the following items in proportion: | |||
| Net (loss)/profit | (10,589,406.46) | 1,905,420.29 | |
| Other comprehensive income | - | - | |
| Total comprehensive income | (10,589,406.46) | 1,905,420.29 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
7 Segment information
The reportable segments of the Group are the business units that provide different express &logistics and supply chain services. Different businesses require different technologies andmarketing strategies, and the Group, therefore, independently manages their operations andevaluates operating results, in order to make decisions about resources allocations andperformance evaluations.
For the six months ended 30 June 2021, the Group mainly had three reportable segments,including:
- Express segment, which provides time-definite express, economy product and cold chaindelivery service;- Freight segment, which provides freight service;- Other segments, including other services and undistributed parts such as supply chain and
intra-city delivery.
Inter-segment transfer prices are determined by reference to pricing policy of related partytransactions.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
7 Segment information (Cont’d)
(b) Segment information as at and for the six months ended 30 June 2021 is as follows:
| Express segment | Freight segment | Others | Inter-segment elimination | Total | |||||
| Revenue from external customers | 66,505,042,982.76 | 13,398,874,413.78 | 8,440,012,427.24 | - | 88,343,929,823.78 | ||||
| Inter-segment revenue | 5,275,290,515.59 | 1,156,309,036.90 | 5,243,246,243.22 | (11,674,845,795.71) | - | ||||
| Cost of revenue | 63,133,378,615.97 | 14,373,836,339.16 | 12,623,719,997.92 | (10,709,581,364.65) | 79,421,353,588.40 | ||||
| Total profit/(Total loss) | 1,513,608,119.43 | (507,551,976.12) | 76,456,776.95 | 10,636,110.59 | 1,093,149,030.85 | ||||
| Income tax expenses | 535,860,716.09 | 72,699,534.19 | 65,829,150.57 | 2,969,302.35 | 677,358,703.20 | ||||
| Net profit/(Net loss) | 977,747,403.34 | (580,251,510.31) | 10,627,626.38 | 7,666,808.24 | 415,790,327.65 | ||||
| Total assets | 75,535,653,684.84 | 10,023,797,108.43 | 103,118,239,775.34 | (55,284,632,399.04) | 133,393,058,169.57 |
| Total liabilities | 53,909,748,272.42 | 9,655,282,803.30 | 57,411,359,940.23 | (44,889,121,509.53) | 76,087,269,506.42 | ||||
| Depreciation and amortisation expenses | 2,210,052,658.95 | 120,413,082.25 | 791,277,299.16 | (1,935,609.58) | 3,119,807,430.78 | ||||
| Depreciation expenses of right-of-use assets | 1,731,859,535.01 | 404,988,882.40 | 281,666,835.50 | (92,421,671.72) | 2,326,093,581.19 | ||||
| Credit impairment losses | 6,684,330.99 | 5,531,579.71 | 2,439,037.12 | (3,478,786.78) | 11,176,161.04 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
7 Segment information (Cont’d)
(c) Segment information as at and for the six months ended 30 June 2020 is as follows:
| Express segment | Freight segment | Others | Inter-segment elimination | Total | |||||
| Revenue from external customers | 58,700,225,248.72 | 7,750,367,602.00 | 4,678,414,887.49 | - | 71,129,007,738.21 | ||||
| Inter-segment revenue | 4,243,818,870.50 | 1,235,296,332.45 | 2,775,963,920.46 | (8,255,079,123.41) | - | ||||
| Cost of revenue | 49,918,288,054.99 | 8,728,357,347.68 | 6,619,494,144.79 | (7,403,010,646.05) | 57,863,128,901.41 | ||||
| Total profit/(Total loss) | 6,430,087,979.51 | (81,655,316.45) | (997,247,322.63) | (12,421,534.21) | 5,338,763,806.22 | ||||
| Income tax expenses | 1,627,289,539.13 | 84,097,711.27 | 5,845,053.97 | (2,233,657.37) | 1,714,998,647.00 | ||||
| Net profit/(Net loss) | 4,802,798,440.38 | (165,753,027.72) | (1,003,092,376.60) | (10,187,876.84) | 3,623,765,159.22 | ||||
| Total assets | 52,773,533,529.76 | 6,680,912,238.06 | 83,918,961,339.36 | (41,327,576,438.18) | 102,045,830,669.00 |
| Total liabilities | 33,950,839,154.75 | 6,431,762,082.64 | 48,651,164,074.00 | (34,120,796,110.60) | 54,912,969,200.79 | ||||
| Depreciation and amortisation expenses | 1,764,779,778.80 | 70,779,169.76 | 765,922,470.93 | (1,219,138.67) | 2,600,262,280.82 | ||||
| Depreciation expenses of right-of-use assets | -- | -- | -- | -- | -- | ||||
| Credit impairment losses | 180,777,347.68 | 1,798,569.34 | 284,265,921.73 | (7,300,736.84) | 459,541,101.91 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions
(1) General information of the controlling shareholder and subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1).
(a) General information of the controlling shareholder
| Place of registration | Nature of business | |
| Mingde Holdings | Shenzhen | Investment |
| 31 December 2020 | Increase in the current period | Decrease in the current period | 30 June 2021 | ||||
| Mingde Holdings | 113,405,734.21 | - | - | 113,405,734.21 |
| 30 June 2021 | 31 December 2020 | ||||||
| Shareholding (%) | Voting rights (%) | Shareholding (%) | Voting rights (%) | ||||
| Mingde Holdings | 59.30% | 59.30% | 59.30% | 59.30% | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control / are not controlled by the Company
Major related parties are listed as follows:
| Relationship with the Company in the reporting period | |
| Fengyi Technology | Controlled by the ultimate controlling person of the Company |
| Shenzhen Shunshang Investment Co., Ltd. | Controlled by the ultimate controlling person of the Company |
| Suzhou Fengchengda Network Technology Co., Ltd. | Controlled by the ultimate controlling person of the Company |
| Shenzhen S.F. Hefeng Microfinance Co., Ltd. | Controlled by the ultimate controlling person of the Company |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | Controlled by the ultimate controlling person of the Company |
| Guangdong Youxuanyipin Commerce Co., Ltd(Youxuanyipin Commerce Holdings) and its subsidiariesNote 1 | Controlled by the ultimate controlling person of the Company before November 2020 |
| Hive Box Technology and its subsidiaries | Held by the ultimate controlling person |
| Beijing Dazhangfang and its subsidiaries | The Group’s associate |
| Chongqing Boqiang Logistics Co., Ltd. | The Group’s associate |
| Canbeidou Supply Chain and its subsidiaries | The Group’s associate |
| Kin Shun Information Technology Limited | The Group’s associate |
| Dunho Weiheng (Zhuhai) Supply Chain Management Co., Ltd. | The Group’s associate |
| Qingdao Dakai Cargo Agency Co., Ltd. | The Group’s associate |
| Shenzhen Zhongwang Finance and Tax Management Co., Ltd. | The Group’s associate |
| Shenzhen Shunjie Fengda and its subsidiaries | The Group’s associate |
| Wuhan Shunluo Supply Chain Management Co., Ltd. | The Group’s associate |
| Xi’an Huahan Air Passenger and Freight Service Co., Ltd. | The Group’s associate |
| Hubei Jiuzhou Tongda Technology Development Co., Ltd. | The Group’s associate |
| Zhongshun Xintean Supply Chain Co., Ltd. | The Group’s associate |
| Shanghai EYouTong Technology Development Co., Ltd. | The Group’s associate |
| Little Red Hat and its subsidiaries | The Group’s associate before August 2020 |
| State Grid E-Commerce Yunfeng Logistics Technology (Tianjin) Co., Ltd. | The Group’s associate since the second half of 2020 |
| KENGIC Intelligent and its subsidiaries | The Group’s associate since the second half of 2020 |
| SCS Logistics Co., Ltd. | The Group’s associate since the second half of 2020 |
| Shenzhen Fengxiang Information Technology Co., Ltd. | The Group’s associate since the second half of 2020 |
| SF REIT and its subsidiaries | The Group’s associate since the second half of 2020 |
| Beijing Shunhe Tongxin Technology Co., Ltd. | The Group’s joint venture |
| Geling Information and its subsidiaries | The Group’s joint venture |
| Global Connect Holding Limited | The Group’s joint venture |
| POST11O? | The Group’s joint venture |
| Shenghai Information | The Group’s joint venture |
| Wenzhou Fengbaoke Technology Co., Ltd. | The Group’s joint venture |
| Wulian Shuntong and its subsidiaries | The Group’s joint venture |
| ZBHA and its subsidiaries | The Group’s joint venture |
| CR-SF International Express Co., Ltd. | The Group’s joint venture |
| Zhongyunda Aviation Ground Services Co., Ltd. | The Group’s associate before June 2021 |
| Fengsu Technology | The Group’s subsidiary before December 2020 and now the Group’s joint venture |
| CITIC Securities Co., Ltd. (“CITIC Securities”) and its business departments | Significantly influenced by the key management of the Company |
| Golden Arches (China) Co., Ltd. ("Golden Arches") and its subsidiaries | Significantly influenced by the key management of the Company |
| Ping An Insurance (Group) Company of China, Ltd. (“Ping An Insurance”) Note 2 | Significantly influenced by the key management of the Company |
| Zhaoguang Investment Note 3 | Significantly influenced by the key management of the Company |
| China Vanke Co., Ltd. and its subsidiaries | Significantly influenced by the key management of the Company since the second half of 2020 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control / are not controlled by the Company (Cont’d)
| Relationship with the Company in the reporting period | |
| China International Marine Containers (Group) Ltd. (“China International Marine”) | Significantly influenced by the key management of the Company since the second half of 2020 |
| China Pacific Insurance (Group) Co., Ltd. (“Pacific Insurance”) Note4 | Significantly influenced by the key management of the Company before July 2019 |
| SF Charity Foundation | Organisation sponsored by controlling shareholders and the Company’s subsidiaries, in which director and senior managers of the company serve on the Board of Management |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions
(a) Pricing policies
The pricing method of transactions and transaction price between the Group and related parties aredetermined, following arm’s length principle, by making reference to the market price or throughnegotiation between both parties.
(b) Income from courier service, combined transport and freight forwarding services
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Golden Arches and its subsidiaries | 768,085,387.49 | 549,826,934.82 | |
| CR-SF International Express Co., Ltd. | 88,609,696.59 | 30,684,995.23 | |
| Fengyi Technology | 9,915,403.17 | 13,789,903.01 | |
| State Grid E-Commerce Yunfeng Logistics Technology (Tianjin) Co., Ltd. | 3,084,234.46 | Not applicable | |
| Suzhou Fengchengda Network Technology Co., Ltd. | 3,059,745.17 | 1,314,952.65 | |
| China International Marine and its subsidiaries | 3,054,344.29 | Not applicable | |
| CITIC Securities and its business departments | 2,671,835.65 | 1,749,086.07 | |
| SCS Logistics Co., Ltd. | 2,204,955.02 | Not applicable | |
| Zhongshun Xintean Supply Chain Co., Ltd. | 2,125,591.27 | 188,519.26 | |
| Canbeidou Supply Chain and its subsidiaries | 1,905,359.59 | 171,947.75 | |
| Hive Box Technology and its subsidiaries | 1,383,690.68 | 893,147.41 | |
| Youxuanyipin Commerce Holdings and its subsidiaries | 954,166.81 | 21,087,072.32 | |
| Geling Information and its subsidiaries | 704,600.66 | 566,861.00 | |
| Wenzhou Fengbaoke Technology Co., Ltd. | 253,796.21 | 837,218.83 | |
| SF Charity Foundation | 181,616.56 | 16,656,918.94 | |
| Ping An Insurance | 49,107.55 | 56,372,650.09 | |
| Pacific Insurance | Not applicable | 11,325,878.60 | |
| Others | 3,550,906.31 | 2,973,306.65 | |
| 891,794,437.48 | 708,439,392.63 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(c) Communication income
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Hive Box Technology and its subsidiaries | 11,655,313.89 | 10,540,933.95 | |
| Shenzhen S.F. Hefeng Microfinance Co., Ltd. | 1,862,327.77 | 809,538.64 | |
| Fengyi Technology | 1,733,712.00 | 1,480,366.98 | |
| Others | 690,060.04 | - | |
| 15,941,413.70 | 12,830,839.57 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Shenzhen S.F. Hefeng Microfinance Co., Ltd. | 2,338,766.81 | 2,361,931.14 | |
| Others | 596,161.19 | 117,618.69 | |
| 2,934,928.00 | 2,479,549.83 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Fengyi Technology | 25,377,551.03 | 5,236,762.32 | |
| CR-SF International Express Co., Ltd. | 3,506,975.74 | 3,737,098.33 | |
| Others | 705,400.90 | 510,730.15 | |
| 29,589,927.67 | 9,484,590.80 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Fengyi Technology | 1,910,701.20 | - | |
| Hive Box Technology and its subsidiaries | 788,218.12 | - | |
| Others | 440,950.70 | 498,435.44 | |
| 3,139,870.02 | 498,435.44 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 3,798,499.91 | 511,585.06 | |
| Others | 635,858.13 | 124,623.77 | |
| 4,434,358.04 | 636,208.83 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(h) Revenue from sales of goods
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Shenzhen Shunjie Fengda and its subsidiaries | 3,409,557.59 | 7,813,123.87 | |
| Hive Box Technology and its subsidiaries | 2,209.96 | 3,488,105.88 | |
| Others | 74,297.38 | 253,909.31 | |
| 3,486,064.93 | 11,555,139.06 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Wuhan Shunluo Supply Chain Management Co., Ltd. | 1,156,568.42 | 321,986.83 | |
| Others | 507,319.28 | 398,109.78 | |
| 1,663,887.70 | 720,096.61 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Mingde Holdings | 40,000,000.00 | - | |
| For the six months ended 30 June | |||||
| Type of the leased assets | 2021 | 2020 | |||
| Fengyi Technology. | Buildings | 907,476.42 | 770,120.28 | ||
| Others | Buildings | 800,482.60 | 708,570.33 | ||
| 1,707,959.02 | 1,478,690.61 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(k) Leases (Cont’d)
(ii) Right of use assets increased by the Group as the lessee in the current period
| For the six months ended 30 June | |||||
| Type of the leased assets | 2021 | 2020 | |||
| SF REIT and its subsidiaries | Buildings | 974,663,570.20 | -- | ||
| Shenzhen Shunshang Investment Co., Ltd. | Buildings | 15,214,307.18 | -- | ||
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | Buildings | 3,397,451.22 | -- | ||
| 993,275,328.60 | -- | ||||
| For the six months ended 30 June | |||||
| Type of the leased assets | 2021 | 2020 | |||
| SF REIT and its subsidiaries | Buildings | 36,287,780.38 | -- | ||
| Shenzhen Shunshang Investment Co., Ltd. | Buildings | 14,392,630.21 | -- | ||
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | Buildings | 3,168,328.83 | -- | ||
| Others | Buildings | 150,116.66 | -- | ||
| 53,998,856.08 | -- | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(l) Combined transport and freight forwarding expenses
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| CR-SF International Express Co., Ltd. | 291,231,896.62 | 191,128,674.20 | |
| Wulian Shuntong and its subsidiaries | 182,454,542.96 | 41,165,451.85 | |
| SCS Logistics Co., Ltd. | 140,805,835.99 | Not applicable | |
| Shenzhen Shunjie Fengda and its subsidiaries | 139,252,262.92 | 96,126,152.00 | |
| Xi’an Huahan Air Passenger and Freight Service Co., Ltd. | 9,863,549.85 | 11,108,419.89 | |
| Zhongyunda Aviation Ground Services Co., Ltd. | 8,750,838.13 | 5,470,688.84 | |
| Qingdao Dakai Cargo Agency Co., Ltd. | 7,306,629.96 | 13,907,375.89 | |
| Chongqing Boqiang Logistics Co., Ltd. | 6,325,442.21 | 4,040,564.96 | |
| Kin Shun Information Technology Limited | 5,882,868.30 | 63,050,647.89 | |
| POST11 O? | 3,275,201.18 | 18,348,348.24 | |
| Shanghai EYouTong Technology Development Co., Ltd. | 4,979,752.68 | - | |
| Little Red Hat and its subsidiaries | Not applicable | 3,459,587.20 | |
| Others | 535,834.18 | 371,846.29 | |
| 800,664,654.98 | 448,177,757.25 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Hive Box Technology and its subsidiaries | 61,845,847.54 | 41,693,321.90 | |
| Beijing Dazhangfang and its subsidiaries | 34,521,968.13 | 2,138,162.91 | |
| Global Connect Holding Limited | 7,192,829.89 | 1,479,642.95 | |
| Shenzhen Zhongwang Finance and Tax Management Co., Ltd. | 4,156,676.25 | 1,352,984.67 | |
| Fengyi Technology | 3,779,339.61 | - | |
| Others | 1,298,337.20 | 1,684,942.72 | |
| 112,794,998.62 | 48,349,055.15 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(n) Interest expenses
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Shenzhen Zhongwang Finance and Tax Management Co., Ltd. | 21,853.93 | 45,109.62 | |
| Others | 74.96 | 375.91 | |
| 21,928.89 | 45,485.53 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Hive Box Technology and its subsidiaries | 34,418,097.24 | 60,944,717.00 | |
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| ZBHA and its subsidiaries | 82,049,925.84 | 76,196,898.98 | |
| Others | 207,054.76 | - | |
| 82,256,980.60 | 76,196,898.98 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| SF REIT and its subsidiaries | 7,939,461.47 | Not applicable | |
| Shenzhen Shunshang Investment Co., Ltd. | 668,398.97 | 23,392,845.68 | |
| Shenghai Information | 922,675.30 | 5,938,741.66 | |
| Beijing Dazhangfang and its subsidiaries | - | 4,153,106.44 | |
| Canbeidou Supply Chain and its subsidiaries | - | 2,020,087.78 | |
| Others | 248,302.99 | 418,511.36 | |
| 9,778,838.73 | 35,923,292.92 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(r) Technology development and operation & maintenance service fee
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Shenghai Information | 12,070,990.65 | 14,266,853.37 | |
| Fengsu Technology | 3,803,482.94 | Not applicable | |
| Beijing Shunhe Tongxin Technology Co., Ltd. | 1,208,836.90 | 2,853,845.58 | |
| Others | 389,773.83 | 231,900.20 | |
| 17,473,084.32 | 17,352,599.15 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Hive Box Technology and its subsidiaries | 611,775.84 | 9,292.45 | |
| Youxuanyipin Commerce Co., Ltd | 580,021.95 | 306,314.75 | |
| Others | 138,384.68 | 134,799.54 | |
| 1,330,182.47 | 450,406.74 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| KENGIC Intelligent and its subsidiaries | 142,702,602.74 | Not applicable | |
| Fengyi Technology | 92,683,803.39 | 110,164,700.38 | |
| China International Marine | 27,558,254.79 | Not applicable | |
| Youxuanyipin Commerce Co., Ltd | 22,289,134.28 | 43,975,730.70 | |
| Wenzhou Fengbaoke Technology Co., Ltd. | 7,492,020.54 | 15,714,549.49 | |
| Shenzhen Fengxiang Information Technology Co., Ltd. | 1,583,383.12 | Not applicable | |
| Hubei Jiuzhou Tongda Technology Development Co., Ltd. | 873,731.25 | 114,605,000.79 | |
| Others | 18,404.11 | 19,055.01 | |
| 295,201,334.22 | 284,479,036.37 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(u) Insurance premium
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Pacific Insurance | Not applicable | 36,409,014.15 | |
| Ping An Insurance | - | 15,821,191.55 | |
| - | 52,230,205.70 | ||
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| SF Charity Foundation | 51,126.48 | 20,000,000.00 | |
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Remuneration of key management | 16,700,000.00 | 16,980,000.00 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties
(a) Accounts receivable
| 30 June 2021 | 31 December 2020 | ||
| Golden Arches and its subsidiaries | 196,069,744.55 | 163,467,065.39 | |
| CR-SF International Express Co., Ltd. | 32,866,366.42 | 27,064,970.00 | |
| Fengyi Technology | 14,979,994.65 | 50,109,913.29 | |
| Hive Box Technology and its subsidiaries | 4,901,662.15 | 3,335,084.30 | |
| Shenzhen Shunjie Fengda and its subsidiaries | 2,447,106.38 | 30,567,588.38 | |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 2,446,635.67 | 929,865.04 | |
| Shenzhen S.F. Hefeng Microfinance Co., Ltd. | 2,266,981.81 | 1,907,815.33 | |
| SF REIT and its subsidiaries | 1,779,317.06 | Not applicable | |
| State Grid E-Commerce Yunfeng Logistics Technology (Tianjin) Co., Ltd. | 1,625,123.93 | 3,684,971.98 | |
| Suzhou Fengchengda Network Technology Co., Ltd. | 1,379,446.12 | 1,465,961.90 | |
| China International Marine | 892,509.20 | 538,172.82 | |
| Zhongshun Xintean Supply Chain Co., Ltd. | 806,719.65 | 100,541.85 | |
| Youxuanyipin Commerce Co., Ltd | 668,045.04 | 465,834.80 | |
| Wenzhou Fengbaoke Technology Co., Ltd. | 436,802.00 | 701,034.00 | |
| China Vanke Co., Ltd. and its subsidiaries | 46,378.80 | 537,775.10 | |
| Zhongyunda Aviation Ground Services Co., Ltd. | Not applicable | 4,003,205.75 | |
| Others | 3,261,051.23 | 3,990,455.20 | |
| 266,873,884.66 | 292,870,255.13 |
| 30 June 2021 | 31 December 2020 | ||
| CR-SF International Express Co., Ltd. | 34,153,818.36 | 23,154,566.76 | |
| Hive Box Technology and its subsidiaries | 5,703,436.49 | 15,601,911.29 | |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 2,781,243.65 | 3,256,643.57 | |
| Youxuanyipin Commerce Co., Ltd | 1,431,049.64 | 503,741.24 | |
| Others | 1,937,708.77 | 1,909,712.37 | |
| 46,007,256.91 | 44,426,575.23 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(c) Loans and advances
| 30 June 2021 | 31 December 2020 | ||
| Wuhan Shunluo Supply Chain Management Co., Ltd. | 33,265,058.13 | 24,406,159.15 | |
| Dunho Weiheng (Zhuhai) Supply Chain Management Co., Ltd. | - | 34,352,402.78 | |
| Kin Shun Information Technology Limited | - | 5,180,137.01 | |
| 33,265,058.13 | 63,938,698.94 |
| 30 June 2021 | 31 December 2020 | ||
| Hive Box Technology and its subsidiaries | 284,611,545.00 | 279,996,905.15 | |
| SF REIT and its subsidiaries | 67,334,657.99 | Not applicable | |
| Golden Arches and its subsidiaries | 28,756,626.65 | 29,396,756.33 | |
| China International Marine | 9,705,463.00 | 9,385,463.00 | |
| Youxuanyipin Commerce Co., Ltd | 2,571,951.28 | 3,039,688.93 | |
| Shenzhen Shunjie Fengda and its subsidiaries | 2,325,690.98 | 1,948,867.55 | |
| Beijing Dazhangfang and its subsidiaries | 378,917.81 | 693,347.52 | |
| Others | 680,374.82 | 738,620.57 | |
| 396,365,227.53 | 325,199,649.05 |
| 30 June 2021 | 31 December 2020 | ||
| KENGIC Intelligent and its subsidiaries | 205,687,460.69 | 22,178,241.29 | |
| China International Marine | 163,341,000.00 | 5,847,429.00 | |
| Hubei Jiuzhou Tongda Technology Development Co., Ltd. | 15,124,000.00 | - | |
| Others | - | 394,633.86 | |
| 384,152,460.69 | 28,420,304.15 |
| 30 June 2021 | 31 December 2020 | ||
| Shenzhen Shunjie Fengda and its subsidiaries | 5,233,556.41 | - |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(g) Deposits from customers
| 30 June 2021 | 31 December 2020 | ||
| Shenzhen Zhongwang Finance and Tax Management Co., Ltd. | 2,785,918.25 | 3,530,459.67 | |
| Others | 503.76 | 573.80 | |
| 2,786,422.01 | 3,531,033.47 |
| 30 June 2021 | 31 December 2020 | ||
| Wulian Shuntong and its subsidiaries | 94,835,269.88 | 71,206,423.49 | |
| CR-SF International Express Co., Ltd. | 85,777,811.57 | 98,127,753.58 | |
| SCS Logistics Co., Ltd. | 55,820,624.85 | - | |
| Shenzhen Shunjie Fengda and its subsidiaries | 41,369,934.05 | 29,564,305.16 | |
| Hubei Jiuzhou Tongda Technology Development Co., Ltd. | 30,724,668.14 | 32,040,569.87 | |
| Fengyi Technology | 12,401,513.20 | 15,059,348.69 | |
| ZBHA and its subsidiaries | 12,258,662.46 | 16,083,449.36 | |
| Youxuanyipin Commerce Co., Ltd | 5,030,521.70 | 13,641,816.30 | |
| Hive Box Technology and its subsidiaries | 5,287,749.50 | 2,429,841.97 | |
| SF REIT and its subsidiaries | 4,283,812.41 | Not applicable | |
| Xi’an Huahan Air Passenger and Freight Service Co., Ltd. | 3,984,708.00 | 2,692,517.44 | |
| Shenghai Information | 3,122,935.24 | 8,378,757.78 | |
| Wenzhou Fengbaoke Technology Co., Ltd. | 2,884,437.87 | 8,889,063.90 | |
| Qingdao Dakai Cargo Agency Co., Ltd. | 2,672,050.39 | 1,344,356.56 | |
| Shanghai EYouTong Technology Development Co., Ltd. | 2,328,771.72 | 418,086.11 | |
| Shenzhen Shunshang Investment Co., Ltd. | 1,607,644.80 | - | |
| Beijing Dazhangfang and its subsidiaries | 1,290,395.77 | 1,108,614.10 | |
| Beijing Shunhe Tongxin Technology Co., Ltd. | 1,281,847.07 | 2,359,931.55 | |
| Shenzhen Fengxiang Information Technology Co., Ltd. | 920,946.02 | Not applicable | |
| Fengsu Technology | 917,647.76 | 2,176,036.69 | |
| POST11O? | 761,470.59 | 4,056,630.21 | |
| Shenzhen Zhongwang Finance and Tax Management Co., Ltd. | 674,994.71 | 1,530,237.94 | |
| Zhongyunda Aviation Ground Services Co., Ltd. | Not applicable | 1,983,543.81 | |
| Others | 1,446,098.91 | 1,173,699.82 | |
| 371,684,516.61 | 314,264,984.33 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(i) Advances from customers
| 30 June 2021 | 31 December 2020 | ||
| Fengyi Technology | 18,517.52 | 2,660.36 | |
| KENGIC Intelligent and its subsidiaries | 8,640.84 | 6,989.74 | |
| Hive Box Technology and its subsidiaries | 7,953.06 | 17,273.73 | |
| Wulian Shuntong and its subsidiaries | 7,267.83 | 7,871.21 | |
| ZBHA and its subsidiaries | 2,622.79 | 2,622.82 | |
| 45,002.04 | 37,417.86 |
| 30 June 2021 | 31 December 2020 | ||
| Golden Arches and its subsidiaries | 1,597,592.98 | 5,194,604.30 | |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 1,496,518.00 | 360,000.00 | |
| Fengyi Technology | 841,526.82 | 9,024,111.33 | |
| Shenzhen Shunjie Fengda and its subsidiaries | 159,389.34 | 4,816,000.00 | |
| Others | 800,845.92 | 582,357.54 | |
| 4,895,873.06 | 19,977,073.17 |
| 30 June 2021 | 31 December 2020 | ||
| KENGIC Intelligent and its subsidiaries | 170,328,291.91 | 216,779,866.78 | |
| China International Marine | 79,877,377.15 | 102,948,509.14 | |
| Golden Arches and its subsidiaries | 16,600,550.45 | 18,474,046.06 | |
| Hubei Jiuzhou Tongda Technology Development Co., Ltd. | 13,095,995.16 | 29,842,072.53 | |
| Wulian Shuntong and its subsidiaries | 2,240,682.70 | 306,098.71 | |
| Fengyi Technology | 1,435,373.92 | 2,713,575.77 | |
| Shenzhen Shunjie Fengda and its subsidiaries | 1,312,240.32 | 464,840.65 | |
| SF REIT and its subsidiaries | 1,012,718.56 | Not applicable | |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 604,864.00 | 219,049.00 | |
| Shenghai Information | 205,934.58 | 834,287.27 | |
| Zhaoguang Investment | - | 2,180,000.00 | |
| Others | 985,114.51 | 1,191,471.86 | |
| 287,699,143.26 | 375,953,817.77 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(l) Lease liabilities(including current portion of lease liabilities)
| 30 June 2021 | 31 December 2020 | ||
| SF REIT and its subsidiaries | 927,925,930.64 | -- | |
| Shenzhen Shunshang Investment Co., Ltd. | 9,756,755.89 | -- | |
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 3,358,800.41 | -- | |
| 941,041,486.94 | -- |
| Leases | ||||
| 30 June 2021 | 31 December 2020 | |||
| - Lessee | ||||
| Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. | 56,634,442.61 | - | ||
| Shenzhen Shunshang Investment Co., Ltd. | 1,607,644.80 | - | ||
| CR-SF International Express Co., Ltd. | 557,287.20 | 806,650.08 | ||
| Others | 747,954.00 | 100,973.40 | ||
| 59,547,328.61 | 907,623.48 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
9 Share-based payments
(1) Overview of share-based payments
Expenses recognised for the period arising from share-based payments were as follows:
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Equity-settled share-based payments | 122,360,610.58 | 54,253,366.54 | |
| Cash-settled share-based payments | 32,338,291.01 | 25,351,380.63 | |
| 154,698,901.59 | 79,604,747.17 | ||
| Post lock-up period | Timing | Proportion of shares exercisable |
| 1st post lock-up period | From the first trading day after 12 months since the registration of granting to the last trading day within 24 months after the registration of granting | 50.00% |
| 2nd post lock-up period | From the first trading day after 24 months since the registration of granting to the last trading day within 36 months after the registration of granting | 50.00% |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
9 Share-based payments (Cont’d)
(2) Information on equity-settled share-based payments (Cont’d)
(a) Information on share-based payments of the Company (Cont'd)
As at 23 March 2020, at the 3rd meeting of the 5th Board of Directors, the Proposal of Repurchasingand Cancelling Certain Restricted Shares was approved: the criteria of the performanceassessment for the second post lock-up period for the restricted shares incentive plan for 2018 werenot met, therefore the Company repurchased and cancelled the restricted shares previously held bythese incentive recipients
The Restricted Shares Incentive Plan mentioned above has been implemented in 2020.
(b) Information on share-based payments of the Company’s subsidiaries
The Group granted some equities or share options of several subsidiaries, to the seniormanagement and other employees of the aforesaid companies or other subsidiaries within theGroup respectively.
As at 30 June 2021, the equity-settled share-based payments of these companies recognised bythe Group accumulated to RMB 392,366,739.74 (31 December 2020: RMB 270,006,129.16),including accumulated amounts attributable to shareholders of the parent company of RMB345,559,707.03 (31 December 2020: RMB 241,004,364.42). For the six months ended 30 June2021, expenses recognised for equity-settled share-based payments amounted to RMB122,360,610.58 (for the six months ended 30 June 2020: RMB 54,253,366.54). The fair value at thegrant date was recognised based on the discount cash flow model and the binomial tree model etc.
(3) Information on cash-settled share-based payments
Information on share-based payments of the Company’s subsidiaries
The Group granted the senior management of subsidiaries with the equity or options of thesubsidiaries with repurchase terms.
As at 30 June 2021, the accumulated liabilities arising from cash-settled share-based paymentsamounted to RMB 161,924,735.07 (31 December 2020: RMB 129,586,444.06). For the six monthsended 30 June 2021, expenses recognised for cash-settled share-based payments amounted toRMB 32,338,291.01 (for the six months ended 30 June 2020: RMB 25,351,380.63).The fair value onthe balance sheet date was recognised based on the discount cash flow model and the binomialtree model etc.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
10 Commitments
(1) Capital commitments
(a) Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the
balance sheet as at the balance sheet date are as follows:
| 30 June 2021 | 31 December 2020 | ||
| Buildings, machinery and equipment | 9,008,905,102.21 | 4,169,824,245.83 | |
| Investment contracts that have been signed but not fulfilled or not absolutely fulfilled | 1,951,177,350.00 | 2,200,898,059.29 | |
| Others | 9,511,896.51 | 4,897,375.00 | |
| 10,969,594,348.72 | 6,375,619,680.12 |
| 30 June 2021 | |
| Within 1 year(inclusive) | 1,212,509,790.01 |
| 1 to 2 years(inclusive) | 512,434,582.68 |
| 2 to 3 years(inclusive) | 438,506,178.64 |
| Over 3 years | 469,882,118.05 |
| 2,633,332,669.38 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
10 Commitments (Cont'd)
(3) Other commitments
(i) In November 2020, the Group issued asset-backed securities through the Special Scheme set up by
Huatai Securities (Shanghai) Asset Management Co., Ltd. by using five logistics industrial parksheld by it as underlying assets. Yiwu Fengyutai Enterprise Management Co., Ltd., QuanzhouFengyutai Enterprise Management Co., Ltd., Wuxi Jietai Enterprise Management Co., Ltd. andHuai'an Fengtai Enterprise Management Co., Ltd. (collectively “Property Operators”), wholly-ownedsubsidiaries of the Group, worked as the property operators of the Special Scheme. In case that theactual operating income of the property assets does not reach 90% but is not lower than 80% of thetarget amount, the Property Operators were committed to compensating the insufficient part of thetarget amount with Taisen Holdings providing guarantee for the compensation obligation.
At the end of each three years, the manager of the above Special Scheme accepts open-endedwithdrawal and subscription of preferred securities within the withdrawal registering period. If thepreferred securities shares that have not completed open-ended withdrawal are less than 20% oftotal undistributed principal of the preferred securities of RMB 788 million, at the extension operationannouncement date, Taisen Holdings will purchase such preferred securities.
(ii) In September 2019, the Group issued asset-backed securities through the Special Scheme set up
by Huatai Securities (Shanghai) Asset Management Co., Ltd. by using three logistics industrialparks held by it as underlying assets. Shenzhen Fengtai E-Commerce Industrial Park PropertyService Co., Ltd., Yiwu Fengyutai Enterprise Management Co., Ltd. and Huai’an Fengtai EnterpriseManagement Co., Ltd. (collectively “Property Operators”), wholly-owned subsidiaries of the Group,worked as the property operators of the Special Scheme. In case that the actual operating income ofthe property assets does not reach 90% but is not lower than 80% of the target amount, the PropertyOperators were committed to compensating the insufficient part of the target amount with TaisenHoldings providing guarantee for the compensation obligation.
At the end of each three years, the manager of the above Special Scheme accepts open-endedwithdrawal and subscription of preferred securities within the withdrawal registering period. If thepreferred securities shares that have not completed open-ended withdrawal are less than 20% oftotal undistributed principal of the preferred securities of RMB 765 million, at the extension operationannouncement date, Taisen Holdings will purchase such preferred securities.
(iii) In December 2018, the Group issued asset-backed securities through the Special Scheme set up by
Huatai Securities (Shanghai) Asset Management Co., Ltd. by using two logistics industrial parksheld by it as underlying assets. Shanghai Fengtai Yuanxing Property Management Service Co., Ltd.(“Fengtai Yuanxing”), a wholly-owned subsidiary of the Group, worked as the property operator ofthe special scheme. In case that the actual operating income of the property assets does not reach90% but is not lower than 80% of the target amount, Fengtai Yuanxing was committed tocompensating the insufficient part of the target amount with Taisen Holdings providing guarantee forthe compensation obligation.
At the end of each three years, the manager of the above Special Scheme accepts open-endedwithdrawal and subscription of preferred securities within the withdrawal registering period. If thepreferred securities shares that have not completed open-ended withdrawal are less than 20% oftotal undistributed principal of the preferred securities of RMB 1.12 billion, at the extension operationannouncement date, Taisen Holdings will purchase such preferred securities.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
11 Events after the balance sheet date
As of the date when this financial statement was approved for issuance, there are no significantevents after the balance sheet date that need to be disclosed.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
12 Operating lease proceeds after the balance sheet date
As the lessor, the undiscounted lease proceeds receivable after the balance sheet date are asfollows:
| 31 December 2021 | |
| Within 1 year(inclusive) | 98,604,940.81 |
| 1 to 2 years(inclusive) | 64,143,693.55 |
| 2 to 3 years(inclusive) | 35,798,412.67 |
| 3 to 4 years(inclusive) | 12,998,878.06 |
| 4 to 5 years(inclusive) | 1,255,416.21 |
| Over 5 years | 43,968.26 |
| 212,845,309.56 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
(i) Foreign exchange risk of companies whose recording currency is RMB
As at 30 June 2021 and 31 December 2020, the Group’s companies whose recording currency isRMB held the financial assets and the financial liabilities denominated in non-recording currencies(mainly USD, HKD and EUR), exclusive of those financial assets and the finaical liabilities raisedwith internal companies, of which the equivalent amounts in RMB are listed as below:
| 30 June 2021 | |||||||
| USD | HKD | EUR | Total | ||||
| (RMB) | (RMB) | (RMB) | (RMB) | ||||
| Financial assets denominated in foreign currency | |||||||
| Cash at bank and on hand | 96,945,546.51 | 7,972,236.40 | 767,311.58 | 105,685,094.49 | |||
| Receivables | 477,251,558.51 | 674,439.28 | 926,133.37 | 478,852,131.16 | |||
| 574,197,105.02 | 8,646,675.68 | 1,693,444.95 | 584,537,225.65 | ||||
| Financial liabilities denominated in foreign currency | |||||||
| Payables | 130,695,245.52 | 7,828,445.51 | 6,913,287.41 | 145,436,978.44 | |||
| 31 December 2020 | |||||||
| USD | HKD | EUR | Total | ||||
| (RMB) | (RMB) | (RMB) | (RMB) | ||||
| Financial assets | |||||||
| Cash at bank and on hand | 69,954,411.02 | 9,936,424.14 | 801,521.75 | 80,692,356.91 | |||
| Receivables | 65,734,659.60 | 160,829.79 | 928,403.58 | 66,823,892.97 | |||
| 135,689,070.62 | 10,097,253.93 | 1,729,925.33 | 147,516,249.88 | ||||
| Financial liabilities | |||||||
| Payables | 60,363,380.45 | 1,890,139.41 | 3,403,408.44 | 65,656,928.30 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
(i) Foreign exchange risk of companies whose recording currency is RMB(Cont’d)
In light of that the functional currencies of the subsidiaries within the Group are different, eventhough the transactions and balances within the Group are offset, foreign exchange risk arising fromthe use of different functional currencies still exists. As at 30 June 2021, companies whoserecording currency is RMB held financial assets and financial liabilities which are due from or toother subsidiaries in the Group and dominated in non-recording currencies (mainly USD and HKD),of which the equivalent amounts in RMB are listed as below:
| 30 June 2021 | |||||
| USD | HKD | Total | |||
| (RMB) | (RMB) | (RMB) | |||
| Financial assets denominated in foreign currency | |||||
| Receivables | 10,213,309.76 | - | 10,213,309.76 | ||
| Financial liabilities | |||||
| Payables | 88,519,846.16 | 25,589,611.98 | 114,109,458.14 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
(ii) Foreign exchange risk of companies whose recording currency is HKD
As at 30 June 2021 and 31 December 2020, those companies operating in Hong Kong with HKD asrecording currency held financial assets and liabilities denominated in non-recording currency(mainly USD, RMB, EUR and GBP), of which the equivalent amounts in HKD and RMB are listed asbelow:
| 30 June 2021 | |||||||||||
| RMB | USD | EUR | GBP | Total | Total | ||||||
| (HKD) | (HKD) | (HKD) | (HKD) | (HKD) | (RMB) | ||||||
| Financial assets denominated in foreign currency | |||||||||||
| Cash at bank and on hand | 65,885,552.52 | 269,549,037.00 | 10,660,263.39 | - | 346,094,852.91 | 287,980,406.81 | |||||
| Receivables | 110,726,973.23 | 146,103,654.60 | - | - | 256,830,627.83 | 213,704,965.74 | |||||
| Investments in other equity instruments | - | 2,476,220,924.21 | - | 33,831,944.97 | 2,510,052,869.18 | 2,088,564,791.39 | |||||
| 176,612,525.75 | 2,891,873,615.81 | 10,660,263.39 | 33,831,944.97 | 3,112,978,349.92 | 2,590,250,163.94 | ||||||
| Financial liabilities denominated in foreign currency | |||||||||||
| Payables | 1,567,569.87 | 26,906,101.76 | 37,090,081.76 | - | 65,563,753.39 | 54,554,629.21 | |||||
| 31 December 2020 | |||||||||
| RMB | USD | EUR | Total | Total | |||||
| (HKD) | (HKD) | (HKD) | (HKD) | (RMB) | |||||
| Financial assets | |||||||||
| Cash at bank and on hand | 19,443,969.60 | 196,888,978.93 | 3,276,180.71 | 219,609,129.24 | 184,825,054.08 | ||||
| Receivables | 2,138,130.11 | 52,560,416.11 | - | 54,698,546.22 | 46,034,797.36 | ||||
| Investments in other equity instruments | - | 2,477,430,490.86 | - | 2,477,430,490.86 | 2,085,104,598.33 | ||||
| 21,582,099.71 | 2,726,879,885.90 | 3,276,180.71 | 2,751,738,166.32 | 2,315,964,449.77 | |||||
| Financial liabilities | |||||||||
| Payables | 2,348,815.30 | 37,444,639.20 | 38,084,795.88 | 77,878,250.38 | 65,543,048.63 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
(ii) Foreign exchange risk of companies whose recording currency is HKD(Cont’d)
As of 30 June 2021 and 31 December 2020, companies whose recording currency is HKD heldfinancial assets and financial liabilities which are due from or to other subsidiaries in the Group anddominated in non-recording currencies (mainly USD and RMB), of which the equivalent amounts inHKD and RMB are listed as below:
| 30 June 2021 | |||||||
| RMB | USD | Total | Total | ||||
| (HKD) | (HKD) | (HKD) | (RMB) | ||||
| Financial assets denominated in foreign currency | |||||||
| Receivables | 136,431,355.85 | 520,658,713.69 | 657,090,069.54 | 546,754,925.56 | |||
| Financial liabilities | |||||||
| Payables | 190,139,046.63 | 9,348,329,234.82 | 9,538,468,281.45 | 7,936,818,340.36 | |||
| 31 Deceber 2021 | |||||||
| RMB | USD | 合计 | 合计 | ||||
| (HKD) | (HKD) | (港币) | (人民币) | ||||
| Financial assets denominated in foreign currency | |||||||
| Receivables | 278,312,022.66 | 340,907,453.65 | 619,219,476.31 | 521,140,781.27 | |||
| Financial liabilities | |||||||
| Payables | 589,648,223.90 | 9,332,604,285.73 | 9,922,252,509.63 | 8,350,658,567.18 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As of 30 June 2021, except for companies in Hong Kong, other overseas subsidiaries within theGroup did not hold significant non-recording currency financial assets and financial liabilities.
(b) Interest rate risk
The Group’s interest rate risk arises from long-term interest bearing debts including long-term bankborrowings and debentures payable. Financial liabilities issued at floating rates expose the Group tocash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair valueinterest rate risk. The Group determines the relative proportions of its fixed rate and floating ratecontracts depending on the prevailing market conditions. As at 30 June 2021, the Group’s long-terminterest bearing debts were mainly related to the contracts of floating rate long-term borrowingsdenominated in RMB and HKD, and fixed rate debentures payable denominated in RMB and USD.Among them, the contract amount of floating rate long-term borrowings denominated in RMB wasRMB 1,758,386,807.78 (31 December 2020: RMB 1,865,820,266.05); the contract amount of fixedrate debentures payable denominated in RMB was 1,180,000,000.00 (31 December 2020: RMB680,000,000.00), and the contract amount of fixed rate debentures payable denominated in USDwas USD 1,200,000,000.00, equivalent to RMB 7,752,120,000.00 (31 December 2020: USD1,200,000,000.00, equivalent to RMB 7,851,480,000.00).
The Group continuously monitors the interest rate position of the Group. Increases in interest rateswill increase the cost of new interest bearing borrowings and the interest expenses with respect tothe Group’s outstanding floating rate borrowings, and therefore could have a material adverse effecton the Group’s financial performance. Management makes adjustments timely with reference to thelatest market conditions and may enter into interest rate swap agreements to mitigate its exposureto interest rate risk.
As at 30 June 2021, if interest rates on borrowings had risen/fallen by 50 basis points while all othervariables had been held constant, the Group’s profit before tax would have decreased/increased byapproximately RMB 8,790,000.00 (31 December 2020: RMB 9,310,000.00).
(c) Other price risk
The Group’s other price risk arises mainly from movements in price of various equity instrumentsmeasured at fair value that will not be sold within 1 year.
As at 30 June 2021, if the price of various investments in equity instruments had risen/fallen by 10%while all other variables had been held constant, the Group’s profit before tax and othercomprehensive income before tax would be approximately RMB 84,680,000.00 (31 December 2020:
approximately RMB 83,150,000.00) and RMB 445,520,000.00 (31 December 2020: approximatelyRMB 502,750,000.00) higher/lower respectively.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable, accountsreceivable, factoring receivables, loans and advances, other receivables, contract assets, currentportion of non-current assets, long-term receivables, investments in debt instruments measured atfair value through profit or loss that are not included in the assessment of impairment, etc. At thebalance sheet date, the Group’s maximum exposure to credit risk represents the carrying amount ofthe Group’s financial assets, except that the maximum exposure to credit risk of long-termreceivables represents its undiscounted contractual cash flows.
The Group expects that there is no significant credit risk associated with cash at bank and on hand,bank wealth management products measured at amortised cost and placements with and loans tobanks and other financial institutions since they are mainly deposits at state-owned banks and othermedium or large size listed banks with good reputation and a higher credit rating. The Group doesnot expect that there will be any significant losses from non-performance by these counterparties.
The Group’s notes receivable, accounts receivable, other receivables, contract assets, currentportion of non-current assets and long-term receivables include receivables from related parties andreceivables from non-related parties. In respect of receivables from related parties, the Groupconsiders that they have low credit risk; in respect of receivables from non-related parties, theGroup will develop relevant policies to control the exposure to credit risk. The Group evaluatescustomers’ credits based on their financial position, possibility of obtaining guarantees from thirdparties, credit history and such other factors as current market conditions, and determines thelength of the credit period based on the evaluation results. The length of the credit period ofaccounts receivable ranges from 30 days to 90 days. The Group monitors customers’ credit historyon a regular basis. In respect of customers with a poor credit history, the Group will use paymentreminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limitedto a controllable extent.
The Group’s notes receivable, accounts receivable and contract assets mainly arise from renderingof express & logistics and supply chain services and other related services or sales of goods, whileother receivables, current portion of non-current assets arising from rendering of express & logisticsand supply chain services and long-term receivables represent advances, cash on delivery service,deposits and guarantees, and interest-free loans to employees. Management maintains ongoingevaluation on debtors’ financial position, but generally does not require debtors’ mortgage foroutstanding debts. The Group monitors and reviews expected credit losses on outstanding amountson a regular basis, and takes into account important macroeconomic assumptions and parametersin the calculation of expected credit losses, including the risk of economic downturn, external marketconditions, changes in customer conditions, gross domestic product and the consumer price indexManagement makes the provision for bad debts based on the evaluation results thereof. Where it isimpossible for the Group to reasonably estimate the recoverable amount, the relevant outstandingamount shall be written off accordingly. Indicators for impossibility to reasonably estimate therecoverable amount include debtors’ failure to make contract payments as planned or makeoverdue contract payments, significant financial difficulties, bankruptcy liquidation, etc.
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(2) Credit risk (Cont’d)
For factoring receivables and loans and advances, the Group developed credit policies andoperational implementation rules in accordance with the requirements of relevant state regulatoryauthorities, and implemented standardised management over the entire process of credit granting.In addition, the Group further improved the systems for credit risk monitoring and early warning anddefective credit extension management. The Group actively responded to the changes in the creditenvironment, regularly analysed the situation and dynamic of credit risks and took risk controlmeasures on a forward-looking basis. The Group also established an optimisation managementmechanism for defective credit and accelerated the optimisation progress of defective credit to avoidnon-performing loans.
As at 30 June 2021, the Group had no significant collateral or other credit enhancements held as aresult of debtor’s mortgage.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’sfinance department in its headquarters. The Group monitors rolling forecasts of the Group'sshort-term and long-term liquidity requirements to ensure it has sufficient cash and securities thatare readily convertible to cash to meet operational needs, while maintaining sufficient headroom onits undrawn committed borrowing facilities from major financial institutions so that the Group doesnot breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term andlong-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity datebelow at their undiscounted contractual cash flows:
| 30 June 2021 | |||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |||||
| Deposits from customers | 2,925,182.37 | - | - | - | 2,925,182.37 | ||||
| Accounts payable | 15,896,242,092.03 | - | - | - | 15,896,242,092.03 | ||||
| Other payables | 7,581,186,251.15 | - | - | - | 7,581,186,251.15 | ||||
| Short-term borrowings | 15,237,727,137.00 | - | - | - | 15,237,727,137.00 | ||||
| Other current liabilities | 2,044,074,379.81 | - | 2,044,074,379.81 | ||||||
| Current portion of non-current liabilities | 8,002,790,951.30 | - | - | - | 8,002,790,951.30 | ||||
| Long-term borrowings | 71,185,823.65 | 440,034,330.16 | 1,412,028,178.18 | 28,095,294.43 | 1,951,343,626.42 | ||||
| Debentures payable | 310,897,812.50 | 970,054,826.20 | 4,147,247,566.35 | 4,999,338,738.01 | 10,427,538,943.06 | ||||
| Lease liabilities | - | 3,729,307,088.76 | 3,957,507,489.36 | 900,530,992.27 | 8,587,345,570.39 | ||||
| 49,147,029,629.81 | 5,139,396,245.12 | 9,516,783,233.89 | 5,927,965,024.71 | 69,731,174,133.53 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(3) Liquidity risk (Cont’d)
The financial liabilities of the Group at the balance sheet date are analysed by their maturity datebelow at their undiscounted contractual cash flows (Cont'd):
| 31 December 2020 | |||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |||||
| Deposits from customers | 3,654,785.86 | - | - | - | 3,654,785.86 | ||||
| Accounts payable | 15,484,940,351.95 | - | - | - | 15,484,940,351.95 | ||||
| Other payables | 7,530,793,784.24 | - | - | - | 7,530,793,784.24 | ||||
| Short-term borrowings | 8,094,272,062.48 | - | - | - | 8,094,272,062.48 | ||||
| Current portion of non-current liabilities | 2,826,483,705.02 | - | - | - | 2,826,483,705.02 | ||||
| Long-term borrowings | 76,284,318.10 | 574,531,015.93 | 1,305,305,241.34 | 129,527,438.94 | 2,085,648,014.31 | ||||
| Debentures payable | 294,374,475.00 | 967,689,159.93 | 3,731,796,741.44 | 5,110,498,430.45 | 10,104,358,806.82 | ||||
| Long-term payables | - | 8,634,317.84 | 1,592,920.35 | 204,491.33 | 10,431,729.52 | ||||
| 34,310,803,482.65 | 1,550,854,493.70 | 5,038,694,903.13 | 5,240,230,360.72 | 46,140,583,240.20 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
15 Fair value estimates (Cont'd)
(1) Financial assets and liabilities measured at fair value on a recurring basis
As at 30 June 2021, the financial assets measured at fair value on a recurring basis by the abovethree levels were analysed below:
| Level 1 | Level 2 | Level 3 | Total | ||||
| Financial assets held for trading - | |||||||
| Structural deposits | - | - | 10,024,343,370.09 | 10,024,343,370.09 | |||
| Others | 75,403.21 | - | - | 75,403.21 | |||
| Other non-current financial assets - | |||||||
| Special scheme equity-class securities | - | - | 390,391,319.74 | 390,391,319.74 | |||
| Industry fund investments | - | - | 456,428,950.23 | 456,428,950.23 | |||
| Investments in other equity instruments - | |||||||
| Equity instruments | 395,947,836.92 | - | 4,059,207,411.86 | 4,455,155,248.78 | |||
| Total financial assets | 396,023,240.13 | - | 14,930,371,051.92 | 15,326,394,292.05 |
| Level 1 | Level 2 | Level 3 | Total | ||||
| Financial assets held for trading - | |||||||
| Structural deposits | - | - | 6,276,847,839.67 | 6,276,847,839.67 | |||
| Others | 74,830.02 | - | - | 74,830.02 | |||
| Other non-current financial assets - | |||||||
| Special scheme equity-class securities | - | - | 390,391,319.74 | 390,391,319.74 | |||
| Industry fund investments | - | - | 441,134,721.34 | 441,134,721.34 | |||
| Investments in other equity instruments - | |||||||
| Equity instruments | 891,158,779.32 | - | 4,136,330,274.98 | 5,027,489,054.30 | |||
| Total financial assets | 891,233,609.34 | - | 11,244,704,155.73 | 12,135,937,765.07 |
| Level 1 | Level 2 | Level 3 | Total | ||||
| Derivative financial liabilities- | |||||||
| Foreign exchange forward contract | - | 23,703,392.07 | - | 23,703,392.07 |
| Level 1 | Level 2 | Level 3 | Total | ||||
| Derivative financial liabilities- | |||||||
| Foreign exchange forward contract | - | 22,155,013.53 | - | 22,155,013.53 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
15 Fair value estimates (Cont'd)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Cont’d)
The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. Therewere no transfers between levels for the current period.
The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an activemarket is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and marketcomparable company model. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spread,liquidity premium, EBITDA multiplier, liquidity discount, etc.
The changes in Level 3 financial assets are analysed below:
| Financial assets held for trading | Other non-current financial assets | Other non-current financial assets | Other equity instruments | ||||
| - Structural deposits | - Special scheme equity-class securities | - Industry fund investments | - Available-for-sale equity instruments | ||||
| 31 December 2020 | 6,276,847,839.67 | 390,391,319.74 | 441,134,721.34 | 4,136,330,274.98 | |||
| Increase in the current period | 50,185,100,000.00 | - | 13,942,550.57 | - | |||
| Decrease in the current period | (46,614,182,953.51) | - | (10,568,692.12) | (40,000,000.00) | |||
| Gains or losses recognised in profit or loss | 176,578,483.93 | - | 12,193,119.55 | - | |||
| Gains recognised in other comprehensive income | - | - | - | 2,885,035.25 | |||
| Exchange differences on translation of foreign currency financial statements | - | - | (272,749.11) | (40,007,898.37) | |||
| 30 June 2021 | 10,024,343,370.09 | 390,391,319.74 | 456,428,950.23 | 4,059,207,411.86 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
15 Fair value estimates (Cont'd)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Cont’d)
| Financial assets held for trading | Other non-current financial assets | Other non-current financial assets | Other equity instruments | ||||
| - Structural deposits | - Special scheme equity-class securities | - Industry fund investments | - Available-for-sale equity instruments | ||||
| 31 December 2019 | 2,909,852,581.06 | 260,424,488.45 | 218,615,943.17 | 4,127,308,996.79 | |||
| Increase in the current period | 61,765,000,000.00 | - | 56,616,465.82 | 500,000.00 | |||
| Decrease in the current period | (51,432,770,887.14) | - | - | - | |||
| Gains or losses recognised in profit or loss | 229,159,591.69 | - | 272,668.05 | - | |||
| Gains recognised in other comprehensive income | - | - | - | (10,728,054.93) | |||
| Translation of foreign currency financial statements | - | - | 341,390.36 | 74,227,041.20 | |||
| 30 June 2020 | 13,471,241,285.61 | 260,424,488.45 | 275,846,467.40 | 4,191,307,983.06 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
16 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as agoing concern in order to provide returns for shareholders and benefits for other stakeholders, andto maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividendspaid to shareholders, refund capital to shareholders, issue new shares or sell assets to reducedebts.
The Group’s total capital is calculated as “Equity” as shown in the consolidated balance sheet. TheGroup is not subject to external mandatory capital requirements.
As at 30 June 2021 and 31 December 2020, the Group's gearing ratio was as follows:
| 30 June 2021 | 31 December 2020 | ||
| Gearing ratio | 57.04% | 48.94% |
| 30 June 2021 | 31 December 2020 | ||
| Cash at bank | 56,435,522.39 | 58,098,498.15 |
| 30 June 2021 | 31 December 2020 | ||
| Dividends receivable from Taisen Holdings | - | 1,500,000,000.00 | |
| Funds raised by convertible corporate debentures granted to subsidiaries | 5,454,806,766.73 | 5,454,806,766.73 | |
| Others | 6,098,431.27 | 6,052,075.25 | |
| 5,460,905,198.00 | 6,960,858,841.98 | ||
| Less: Provision for bad debts | (231.78) | - | |
| 5,460,904,966.22 | 6,960,858,841.98 |
| 30 June 2021 | 31 December 2020 | ||
| Within 1 year(inclusive) | 2,901,731,192.41 | 4,784,120,657.19 | |
| 1 to 2 years(inclusive) | 2,559,174,005.59 | 2,176,738,184.79 | |
| 5,460,905,198.00 | 6,960,858,841.98 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(3) Long-term receivables
| 30 June 2021 | 31 December 2020 | ||
| Funds raised by a non-public offering of shares granted to subsidiaries | - | 82,496,567.74 |
| 30 June 2021 | 31 December 2020 | ||
| Subsidiaries (a) | 50,997,087,817.91 | 50,997,093,513.91 | |
| Less: Provision for impairment of long-term equity investments | - | - | |
| 50,997,087,817.91 | 50,997,093,513.91 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(4) Long-term equity investments (Cont’d)
(a) Subsidiaries
| Accounting method | 31 December 2020 | Movements in the current period | 30 June 2021 | Shareholding (%) | Voting rights (%) | Explanation of disparity between percentages of shareholding and voting rights | Provision for impairment loss | Cash dividends declared in the current period | ||||
| Taisen Holdings | Cost method | 50,997,093,513.91 | (5,696.00) | 50,997,087,817.91 | 100.00% | 100.00% | Not applicable | - | - |
NOTES TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(5) Investment income
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Investment income from financial assets held for trading | 2,664,607.92 | 39,274,743.44 | |
| Investment income from wealth management products | - | 5,629,216.85 | |
| 2,664,607.92 | 44,903,960.29 | ||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
1 Statement of non-recurring profit or loss
| For the six months ended 30 June | |||
| 2021 | 2020 | ||
| Investment income from disposal of subsidiaries | 942,964,204.15 | - | |
| (Losses) /Gains on disposal of other non-current assets | (6,632,153.94) | 7,613,935.62 | |
| Government grants recognised in profit or loss for the current period (government grants recognised in non-operating income, other income and deducted against related cost and expenses) | 383,344,061.72 | 426,807,766.64 | |
| Gains/(Losses) arising from changes in fair value of financial assets and liabilities held for trading and investment income/(loss) arising from disposals of financial assets and liabilities held for trading | 21,622,194.25 | (1,429,156.76) | |
| Income generated where investment cost of enterprises’ acquisition of subsidiaries is less than the share of the fair value of the investee’s identifiable net assets at the time of acquisition of investment | 2,375,341.81 | - | |
| Reversal of impairment provision for receivables individually assessed for impairment | 18,564,776.44 | - | |
| Net amount of other non-operating income and expenses | (23,918,665.39) | (23,668,908.06) | |
| Sub-total | 1,338,319,759.04 | 409,323,637.44 | |
| Less: Income tax effect | (94,158,037.89) | (90,886,652.95) | |
| Less: Non-recurring profit or loss attributable to minority shareholders | (7,151,872.09) | (1,605,088.81) | |
| Non-recurring profit or loss attributable to shareholders of the parent company | 1,237,009,849.06 | 316,831,895.68 | |
| Including: Non-recurring profit or loss from continuing operations | 1,237,009,849.06 | 316,831,895.68 | |
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
2 Return on net assets and earnings per share
| Weighted average return on net asset (%) | Earnings per share | |||||||
| Basic earnings per share | Diluted earnings per share | |||||||
| For the six months ended 30 June | For the six months ended 30 June | For the six months ended 30 June | ||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||
| Net profit attributable to ordinary shareholders of the Company | 1.34% | 8.51% | 0.17 | 0.85 | 0.17 | 0.85 | ||
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | ||||||||
| (0.84%) | 7.79% | (0.10) | 0.78 | (0.10) | 0.78 | |||
| Including: | ||||||||
| - Continuing operations | ||||||||
| Net profit attributable to ordinary shareholders of the Company | 1.34% | 8.51% | 0.17 | 0.85 | 0.17 | 0.85 | ||
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | (0.84%) | 7.79% | (0.10) | 0.78 | (0.10) | 0.78 | ||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]